Defence Degree College For Women, Lahore

Affiliation with University of Education

Department of Economics and Business Administration

Internship Report

SILK BANK LTD

A REPORT SUBMITTED TO THE DEPARTMENT OF ECONOMICS AND BUSINESS

ADMINISTRATION, UNIVERSITY OF EDUCATION, LOWER MALL CAMPUS, LAHORE IN THE
PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF BACHELOR OF
BUSINESS ADMINISTRATION (HONS)

Alishba Nadeem
BSF2006163
2020-2024
INTERNSHIP REPORT

Defense Degree College For Women, Lahore

Affiliation with University of Education
Department Of Economics and Business Administration

SILK BANK Limited

A REPORT SUBMITTED TO THE DEPARTMENT OF ECONOMICS AND BUSINESS

ADMINISTRATION, UNIVERSITY OF EDUCATION, LOWER MALL CAMPUS, LAHORE IN THE
PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF BACHELOR OF
BUSINESS ADMINISTRATION (HONS)

Submitted By: ALISHBA NADEEM

Roll No: BSF2006163
Session: 2020-2024
Submission Date: 2nd January 2024

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INTERNSHIP REPORT

University of Education
Lower Mall Campus, Lahore
Department of Economics and Business Administration

LETTER OF UNDERTAKING

This internship report was submitted by Alishba Nadeem D/O Nadeem Bashir, Roll No. bsf2006163 for the

partial fulfillment of the requirements for the degree of

BBA (HONS.)
Session (2020-2024)
with specialization in
MARKETING
and is hereby accepted by the evaluation committee.

Internship Supervisor ________________________

HOD / Coordinator ________________________

Principal ________________________

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INTERNSHIP REPORT

DEDICATION:
I would like to dedicate my work to my parents. As I embark on this journey of
professional growth and learning through my internship, I find myself reflecting on the unwavering support and
love that have shaped my path. This internship is not just a step in my career but a testament to the sacrifices
and encouragement you have provided throughout the years.

Mom and Dad, your belief in my abilities, your guidance, and the values you instilled in me have been the
driving force behind my aspirations. This internship is dedicated to both of you, the pillars of my strength and
the foundation of my dreams.

Your sacrifices have been my motivation, and your love has been my inspiration. I carry your teachings with me
into the professional world, knowing that my success is, in many ways, a tribute to your unwavering support.

Thank you for being my guiding stars. This internship is as much yours as it is mine.

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INTERNSHIP REPORT

ACKNOWLEGDEMENT:
First of all, I’m thankful to Allah Almighty who always helped me in all
the ways of life and provide me the courage and patience to complete all of my internship work in a good
manner. I would like to express my sincere gratitude to all those who have played a significant role in the
successful completion of my internship and the accompanying internship report. Your unwavering support and
guidance have been invaluable throughout this journey.
Furthermore, I extend my appreciation to Sir Anas Mehboob, whose valuable contributions significantly
enhanced the overall quality of my internship experience. Your willingness to share insights and information
has been invaluable.

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INTERNSHIP REPORT

EXECUTIVE SUMMARY

This report is about my internship in Silk Bank. Silk bank Limited, formerly known as Saudi-Pak
Commercial Bank, is a Pakistani commercial bank which is based in Karachi, Pakistan. It has a branch
network of 111 in 29 cities. The bank was founded in 1994. It began commercial operations on May 7, 1995. It
has a network of twenty branches.
During my internship, I learn a lot about working in different departments that are account opening, clearing
and remittance. An internship can be an exciting part of our education that supplements our academic
knowledge, promotes personal development and professional preparation.
It was a great source of learning practical skills being an internee at Silk Bank and to implement my knowledge
in the field.

In this report I have given the brief history of Silk bank and explained its nature, business volume, various
departments, SWOT Analysis, products and services in detail. After that I have provided the organizations
structure of the bank.

Later, I have stated the key marketing implementation in the overall Bank level which is based on the branch
level SWOT Analysis and conclusion which is done keeping in view both the branch and overall Bank level.

TABLE OF CONTENT
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INTERNSHIP REPORT

Title page
1
Letter of undertaking
2
Dedication
3
Acknowledgement
4
Executive summary
5
Introduction of banking sector in Pakistan
10
Overview of the organization
11
Brief history 11
Vision statement 11
Mission statement 11
Introduction of Silk bank 11
Corporate objective 11
Market standing of the bank 12
Policy of the bank 12
Competitors 12
Business volume
13
Product lines 13
Retail banking 13
Corporate banking 13
Investment banking 14
Internet banking 14
SMS banking 14
Organizational structure 15
Organizational hierarchy chart 15
Number of employees 15
Main offices 15
Brief introduction of all the departments 17
Account opening department 17
Business development department 17
Credit department 17
Dispatch department 17
Clearing department 17
Account department 18
Comments on the organizational structure 18
Plan of my internship program 19
brief introduction of the branch 19
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Starting and ending dates of my internship 19

Names of the departments in which I got training 19
Training program 20
Account opening department 20
Cash department 21
Credit department 22
Clearing department 23
Inward clearing 23
Outward clearing 24
Remittances department 24
Western union 25
Telegraphic transfer 25
Demand transfer 25
Marketing function 26
Products offered by the bank 26
Current account 26
Silk basic banking account 26
Silk current account 26
Saving account 27
Silk PLS saving account 27
Silk saving plus account 27
Silk privileges 55+ saving deposits 28
Silk multiplier account 29
Term deposit 30
Silk Mahana scheme 30
Habib Metro premium deposits scheme 31
Silk bank Izafa certificates 32
Services offered by the bank 33
Silk bank Home Remittance 33
Silk bank Money Gram International 33
Silk bank Cash Management Services 33
Silk bank E-Salary 33
Silk bank Rent Free Lockers 33
Silk bank Short Term and Long-Term Finance 33
Silk bank Shares Subscription Desk (Services) 33
Silk bank 24 Hours Call Center 33
Silk bank Web Banking 34
Silk bank SMS Banking 34
Silk bank POS (Point of Sale) Services 3
4
Silk bank E-Statement 35
Silk bank Visa (ATM / Debit Card) 35
Pricing strategies 35
Distribution channels 36
Promotion 36
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Human Resource Management 37

Employees recruitment and selection 37
Training & development 37
Performance management 38
Compensation policy 38
Financial Analysis 40
Ratio analysis 40
Current ratio 40
Debt ratio 41
Working capital 41
Critical analysis 42
Analysis of micro environment of the organization 42
Analysis of macro environment 43
Competitor analysis 44
Marketing mix strategies 44
Swot analysis 45
Strengths 45
Weaknesses 46
Threats 46
Opportunities 46
Conclusion 48
Recommendations 49
References 50
51

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INTRODUCTION OF BANKING SECTOR IN PAK-

ISTAN:

Banking sector owes a

pivotal importance in the economy of any country through its vibrant functions. A bank is a financial institution
that offers the widest range of financial services. These financial institutions play a vital role throughout the
world's economic system.

The banking structure of Pakistan consists of State Bank of Pakistan, Commercial Banks, Exchange Banks, Co-
operative Banks, Saving Banks and Specialized Credit Institution. Banking means "the accepting of money
from public in shape of deposits for the purpose of lending or investment, repayable on demand or otherwise
and withdrawal by cheques, drafts and pay order."

Banks play a pivotal role in a country's economy. The banks in Pakistan comprise of almost 95% of the total fi-
nancial sector. There is a wide range of banking institutions from central bank to commercial banks to the spe-
cialized agencies that provide services to specific segment.

Pakistan started off without any meritorious banking system in the year 1947 but it got an exceptional growth in
the first 2 decades. By 1970, banking sector in Pakistan managed to acquire a prosperous position. In the 1990's
there came a wave of privatization of financial institutions. The government owns National Bank of Pakistan
but 80% of bank assets lie in the private sector.

The banking sector in Pakistan consists of:

 Commercial Banks
 Development Finance Institutions
 Non-Banking Finance Companies. Microfinance Banks Leasing Companies Investment Banks
 Discount Houses
 Modaraba
 Stock Exchange
 Insurance Company
 Housing Finance Company

Commercial banks have been the most effective mobilizes of savings and have been providing short term re-
quirements of working capital to trade, commerce and industry. The network of bank branches now covers a
very large segment of national economy. Throughout the period of banking history, the banks have been ex-
panding rapidly and achieved the desired goal of progress.

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OVERVIEW OF THE ORGANIZATION

Brief History:

Silk bank is a private sector financial institution. The Silk Bank was established on 1949 to serve
as agent to SBP. Silk bank head office is in Karachi. It has 1249 regional branches and 18 overseas branches.
Silk bank is a 52% share owned by the Government of Pakistan (GOP). Silk bank’s total assets stood at
PKR820 billion on mid of 2009. This included total earning assets of about PKR268 billion with gross loan
profit of PKR 140 billion. The bank also has an investment portfolio of PKR 171 billion. On September 15,
2001, under the supervision of the State Bank of Pakistan (SBP), the institution then known as the Prudential
Bank was acquired by the management and associates of the Saudi Pak Industrial and Agricultural Investment
Company (Pvt) Ltd (SAPICO).
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 (PKR 29.3 equivalent per share). Under the new leadership, the Bank will
continue to focus on SME & Consumer financing resulting in efforts of increased profitability.
Silk bank was awarded Best Innovation in ‘Retail Banking Pakistan 2020’ at the International Bankers
Awards.
Vision Statement:

“Benchmark of Excellence in premier banking”.

Mission Statement:

“To be the bank of choice”

Introduction of Silk bank:

Silk Bank Limited is a private bank providing financial services to the customers under the
leadership of Former Finance Minister Mr.Shaukat Tarin. Bank is engaged in Wholesale and Retail Banking.
Currently bank continues to strengthen its presence in market by the help of expansion plan. By the end of 2013
Bank has 85 branches which include 10 Islamic Banking branches.

The Silk Bank Limited is growing very impressively and making profits which growing higher day by day with
the slogan of “Yes We Can” making the wishes of people come true through the philosophy of transferring
concepts to reality.

Bank’s product portfolio includes such type of innovative products according to the needs and preferences of
the customers which are providing benefits to customers as well as adding profits to the bank. These products
include Auto Finance, Business Value Account, Money Market Express, Munafa Rozana / Super Saver, Online
Express, Ready Line, Salary Premium Account, Visa Debit Cards, Credit Cards, Online Banking and Islamic
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INTERNSHIP REPORT

Banking Products. Bank’s growth graph is showing upward, positive and

continuous trends and its profit percentage is increasing every year.

Corporate Objective of the bank:

Silk bank’s goal is to be a leading player in the market with the vision to be amongst the top ten banks of the
country. We want to be known as a Bank with highest standards of ethical conduct. The reputation of Silk bank
should be built on the honesty and fairness of individual employees-regardless of function, business or location.
This standard going beyond compliance with the letter of applicable laws and regulations, demands a consistent
regard for moral principles. Silk bank continues to dependent, not only on the quality of our products and ser-
vices, but also on the way in which they are delivered.
Policy of the bank:

 FTC Policy – Silk bank FTC policy includes providing customers quality in service and range of bank-
ing products without discrimination. We also ensure to measure the clarity, appropriateness and fairness
of product information which is to be provided to customers. Appropriate measures to be undertaken by
the bank to create awareness for customers to be able to contact the bank through a number a channel in
order to receive fast and accurate product information.

 Employee Training – Trainings are important for organization’s development and growth. Silk bank’ s
regular training modules covers guidance to staff in dealing effective and proactive manner with cus-
tomers, handling customer grievance, product information and service recovery. New candidates are
also given training on FTC before being permitted to interact with customers. Existing employees are
trained to refresh and enhance their knowledge.

 Robust Complaint Management Unit - Silk bank has a robust complaint management, record keeping
and root cause analysis process which ensures that the complaint process is accessible to our customers.
CS & Q has service standards in place for processing complaints and these are communicated to our
customers which is supplemented by well-defined complaint resolution process. Silk bank focuses not
only on a redressal mechanism but also on identifying on a root cause on complains and taking neces -
sary corrective measures to minimize customer grievances.

Competitors:

The competitor banks of Silk Bank are listed below:

 MCB Ltd
 HBL Ltd
 Bank Alfalah
 Bank of Punjab

Business Volume:

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INTERNSHIP REPORT

The deposits of the Bank substantially increased by Rs. 11 billion as compared to

December 2019, taking the total deposit base to Rs. 160 billion. Current Account
grew by 26% while overall CASA deposits improved from 58% in Dec 2019 to 61% in Dec 2020.

PRODUCT LINES

Loan and Advances

M’Power
Turnover is vanity, profit is sanity but cash is reality and good cash flow is the key to success of any business.
Silk Bank M’Power offer running finance against your land, residential & commercial properties insuring a
steady life line for your business.

Convenient
 Land, residential and commercial properties acceptable as security
Flexible
 Ever green facility with no principal repayment
Affordable
 Mark up calculation on daily utilized amount only
Accessible
 Visa debit card acceptable internationally
 Available in all major cities of Pakistan i-e Karachi, Lahore, Rawalpindi, Islamabad & Gujranwala
 Online banking facility in 32 cities of Pakistan
Fast process
 Fast processing with simple and hassle-free documentation
Eligibility
 Resident of Pakistan
 Self-employed professional &businessmen in going concern over 3 to 5 years
 Monthly income of 50,000
 Age 25-60 years
 Real estate collateral in shape of land, residential &/or commercial properties
Insurance Products
 Roshan Mustaqbil

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INTERNSHIP REPORT

 Sunehra Kal
 Mehfooz Her Pal
 Silk Health Plan
Roshan Mustaqbil
Silk bank Roshan Mustaqbil Bancassurance is an education plan exclusively designed to cater your needs. The
plan is underwritten by EFU Life Assurance Ltd.
Roshan Mustaqbil is a flexible, tailor-made, complete financial package that facilitates you to plan your
children’s future education requirements and guarantees a financially secure tomorrow even in case of any
mishap.

Sunehra Kal
Silk Bank Sunehra Kal bank assurance is a saving and investment plan exclusively designed to cater all your
needs. The plan is underwritten by EFU Life Assurance Ltd.

Mehfooz Har Pal

Silk Bank Mehfooz Har Pal bank assurance is a simple yet comprehensive accident and hospitalization plan
providing 24-hour worldwide coverage to the entire family. The plan is underwritten by EFU Life.

Silk Health Plan

With a mission to help people live healthier, wealthier and more successful lives Silk bank offers Silk Health
Plan, a comprehensive healthcare package that provides financial protection in case of illness or accident that
leads to hospitalization. The plan is underwritten by Allianz EFU.

Technology Products
 Visa Debit Card
 Mobile Banking
 E-Statements
 Sms Alert
 Silk Bank-Direct

Visa Debit Card

With Silk Bank Debit Card get 24-hours access to cash anytime and anywhere around the world.Silk Bank
Debit Card offers international acceptance and enables to draw cash, direct from account anywhere, any time.
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INTERNSHIP REPORT

Mobile Banking
Silk-Direct Internet Banking is accessible through GPRS enable mobile phones.
Facilities of Mobile Banking are:
 Balance Inquiry
 Mini Statement
 Check Book Request
 Account Statement Request

E-Statement
E-Statement facilities
 No Hassles
 Simple Registration Process
 Desired Frequently Options
SMS Alert:
Silk Bank Sms Alert offer to customers the ability to stay informed around the clock, any time.
Once enrolled for SMS Alert, you will receive alert on transactions you select, from the following set of option:

Silk Bank-Direct
With Silk Bank Internet banking service, we can access and manage our accounts anywhere, any time.
 Balance Inquiry
 Mini Statements
 Transaction Details
 Low Balance Alerts
 Accounts Statements Requests
 Fund Transfers
 Pay Order/Demand Draft Requests
 Cheque Book Requests

ORGANIZATIONAL STRUCTURE
Organizational Hierarchy Chart:

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The day-to-day affairs of Silk bank are managed by Management of Silk bank
who has to report to Board of Directors of Silk bank.
Their reporting lines are given as follows:

PRESIDENT

MEMBER BOARD

SENIOR EXECTIVE VICE-PRESIDENT

EXECUTIVE VICE PRESIDENT

SENIOR VICE PRESIDENT

VICE PRESIDENT

ASSISTANT VICE PRESIDENT

BRA OFFICER GRADE I

NCH
HIER
ARC OFFICER GRADE 2
HY

OFFICER GRADE 3

MESSENGER

PEON

SWEEPER
Number of Employees:
Currently 5,670 employees are working in Silk Bank including both males and females.

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INTERNSHIP REPORT

Main Offices:
Head office and main branch of Silk Bank is located in Karachi.
The bank has branches in following cities

1. Karachi
2. Lahore
3. Islamabad/Rawalpindi
4. Peshawar
5. Quetta
6. Multan
7. Faisalabad
8. Sialkot
9. Hyderabad
10. Sukkur
11. Gwadar
12. Muzaffarabad AJK
13. Gilgit

Brief Introduction of all the departments

Account Opening Department
To open an account the customer, have to meet the general banking manager with an introducer (the
person who is going to introduce that person in the bank) and get an application form used for account
opening. Different color-coded application forms are available for each type of account. Along with
the form a card for specimen signature is also supplied to customer. Manager has every right not to
accept this contract if he is not satisfied by the details provided by the customer. In case the contract is
acceptable to both, now it is ready to open the account formally.

Credit Department
The earning of a commercial bank is chiefly derived from interest charges on loans and discounts it.
Now loans are recognized as advances or finances. The advances are made through the deposits that are
kept in the bank by the customers. The bank pays profit on the deposited amount and receives mark up
on the advances made of different amounts. Silk bank introduced the mark up based advancing in Jan1,
1985 when the Islamization of the economy was influence under this system of advancing the bank is
entitled to receive a constant sum of money on the amount that is outstanding on the account of the
party.
Foreign Exchange

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To promote flow of foreign exchange in the country, the Government of

Pakistan started a new scheme of opening of bank accounts in foreign currency. These accounts were
entitled to receive profit percentage in shape of the currency in which the account was kept (Dollar
account shall be paid profit in dollars). This has increased the flow of foreign currency especially from
the Pakistani foreign residents, who used to send money to their families at home. The State Bank of
Pakistan was given special rights to control and monitor the performance of the “Authorized Dealers”
in foreign exchange accounts.
Remittance Department
Remittance department provides services to the customer of the bank. The main function of this
department is transfer of funds.

Instruments of Bills and Remittance Department

The instruments that are handled in the Remittance department are as follow:
 Demand Draft.
 Mail transfer.
 Telegraphic transfer.
 Pay order.
 Pay slip.
 OBC (outward bill for collections).
 IBC (inward bill for collections).
Clearing Department
There is no legal obligation on a banker to collect cheques drawn upon other banks for a customer.
However, it is function of almost every modern bank of the collection of cheques and bills on behalf of
the customer.
Clearing department services are provided in order to make arrangements for the economic collection
of the cheques, DD and other negotiable instruments. A large part of this work is carried on through the
clearinghouse.

Deposit Department
It controls the following activities:
a) A/C opening.

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INTERNSHIP REPORT

b) Issuance of cheque book.

a) Current a/c
b) Saving a/c
c) Cheque cancellation
d) Cash

Comments on the organizational structure:

The success of an organization is closely tied to its organizational structure, and SILK BANK exemplifies a
smooth and efficient structure that facilitates work convenience. Tasks are systematically divided among
various departments based on their nature, and the bank's operations depend on employees diligently carrying
out their assigned duties.
Throughout my internship at the bank, I observed a cohesive and well-organized environment where each
department efficiently executed its designated responsibilities. Remarkably, there was no apparent disconnect
between lower-level employees and top-tier management. Communication, both horizontally and vertically, was
effective, fostering harmony in the overall management structure.
I noticed a transparent and well-defined line of communication and responsibilities among employees and
departments. Every staff member understood their duties and authority, contributing to the seamless execution
of tasks. In my opinion, SILK BANK in Pakistan is committed to clear transparency and exceptional work,
positioning itself as a leading bank in the country's banking sector.

PLAN OF INTERNSHIP PROGRAM

Brief Introduction of the Branch:

During my 6-week internship at Silk Bank, New Garden town branch in Lahore, I had the opportunity to work
in a well-recognized and fully-equipped banking environment with an efficient networking system. The branch
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INTERNSHIP REPORT

offers a comprehensive range of banking facilities to cater to the diverse needs of

its customers. Throughout my internship, I gained valuable experience, acquired new skills, and actively
participated in various departments to broaden my knowledge.
The branch staff is characterized by their exceptional cooperation, high level of education, and extensive
experience, contributing to the remarkable performance of the branch. Operating from 9:00 am to 5:30 pm on
weekdays, the branch follows a diligent routine where staff members complete daily vouchers, transactions, and
entries on the network system after official banking hours. The day concludes with cash counting, ensuring both
physical and system balances are reconciled before securing the cash in the safe. This daily routine emphasizes
the commitment to maintaining accurate financial records.
The bank provides its employees with 15 days of annual leave, along with allowances, fostering a healthy work-
life balance and allowing staff to enjoy their holidays without undue stress. During my internship, I had the
opportunity to work in various departments, including account opening, clearing, and remittance, gaining
insights into the diverse functions of the bank.
Employee promotions within Silk Bank are determined by a grading system, taking into consideration both
performance and experience. The salary structure is influenced by an individual's experience, knowledge, and,
most importantly, their performance. This performance-based approach underscores the bank's commitment to
recognizing and rewarding the efforts of its employees, contributing to a dynamic and motivated work
environment.
Starting and ending dated of my internship:

Starting and the ending dates of my internship program in Silk bank (Ltd.) New Garden Town branch, Lahore

Starting date: 30th August 2023

Ending date: 11th October 2023

Name of the departments in which I got the training:

During my internship I worked almost in the all departments of bank. As my internship duration is 6 week, I
learnt the working of the following departments:

 Account opening department

 Cash department
 Credit department
 Clearing department
 Remittances department

TRAINING PROGRAM

Detailed description of the tasks assigned to me during the internship program

Duration of my internship is six weeks in SILK BANK (Ltd) Cavalry branch. I learned the detail work of differ-
ent departments. The detail of the function which I perform are mentioned as under:

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INTERNSHIP REPORT

1st and 2nd week:

Account opening department:

During my initial two weeks, I worked in the account opening department, a crucial segment of the bank since
all banking operations hinge on accounts, and they reflect the deposits within the bank. The initial step for any -
one associated with the bank or organization involves opening an account, and my role in the department was to
facilitate the opening of new accounts for valued customers. I learned that various documents are required for
the new account opening process. SILK BANK (Ltd) offers a range of account types to its customers.

1. Current account
2. Saving account
3. (PLS) Profit and loss account

These have different specification of the customer which will give benefit to him. For account opening the mini-
mum amount required is 1000 Rs.

The document which is used in the opening a new account is as under:

1. Account opening form

2. The name of person who request for opening the new account
3. The type of the account
4. Computerized Copy of national identification card
5. Check the expiry date
6. Filled the opening form
7. Signature of the person
8. SS Card (Specimen Signature Card)
9. Mother name
10. Father name
11. Present address
12. Permanent address
13. KYC Foam (Know your customer)
14. CNIC Required for KIN

The most crucial aspect of account opening is the signature on the Social Security (SS) Card because it ensures
that the individual withdrawing money is the original customer. Another essential step is the Know Your Cus -
tomer (KYC) Form, where we gather confidential information such as the client's father and mother's names,
business income, email address, postal address, and contact number. Lastly, a National Identity Card (NIC) is
required for the next of kin (KIN) of the client, specifically for blood relations like father, mother, brother, or
sister. It is not necessary for friends or other individuals; only NICs of those with a direct blood relation to the
client are required.

3rdweek:

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INTERNSHIP REPORT

Cash department:

During my third week of internship, I worked in the cash department, which exclusively handles cash transac-
tions, both incoming and outgoing from the bank. Throughout this period, I gained insights into the various ac -
tivities conducted within the cash department. The department comprises several sub-departments, each as-
signed to specific categories, with different individuals responsible for carrying out distinct tasks within the
cash department.
There are four to five counters which includes:

 The issuance the toke

 Receipt counter or the cash deposit counter
 Payment of cash and checks
 Verification and clearance the check and account counter
 Bill and fee receive counter

During the learning process, I acquired knowledge about the sequential steps involved in customer transactions.
Initially, a token is issued to the customer, and at the receipt counter, cash is received, and account maintenance
is carried out. In the case of a customer presenting a cheque, a verification person authenticates the cheque.
Subsequently, the cashier processes the payment against the cheque, conducts online transfers, and oversees all
activities related to cashier duties, including dispensing cash to valued customers and handling billing and fee
collection at the receipt counter.
The activities of the cash department of Silk bank (Ltd) are as under:

 Source of cash
 Management of cash
 Deposits
 Demand draft and the online maintains
 Treatment of surplus cash
 Treatment of the cash deficit
 Cash transit
 Issuance of cash
 Security arrangements
 Verification of cheque
 Receive the bill and the fees collection

This department holds utmost significance within the bank. Through my experience working in this division,
I've come to understand that it revolves around meticulous cash management. The staff operates with great care,
ensuring precision to avoid any errors. During the evening closing, a thorough reconciliation is conducted on
both sides of the cash account to ensure balance and equality, ultimately contributing to the bank's profitability.

4th week:

Credit department:
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INTERNSHIP REPORT

The credit department is responsible for managing loans and credit. It oversees the issuance of credit after con -
ducting necessary verifications, assessing security, and obtaining guarantees up to the desired limit. The process
adheres to established rules and regulations governing the issuance of credit and loans to customers.

Credit department of SILK BANK (Ltd) deals with different types of running finance and the types of loan
which are as under:

 Cash finance
 Demand finance
 Term finance
 Short term and long-term loan Etc.

In this department, I gained knowledge that the fundamental details provided for credit or loan issuance are as
follows:
i. Name of the customer
ii. Copy of CINC
iii. Expiry date of the CNIC
iv. Date of birth
v. Complete address
vi. Income of the customer

When an individual seeks a loan from a bank, there are predefined limits set by the bank for both individuals
and organizations. Obtaining a loan involves the submission of various documents and guarantees, which vary
depending on the type of loan being applied for.

The requirements are as under

i. Account number of the borrower and the account type

ii. Nature of the business and the main products
iii. Name of the borrower
iv. Purpose of the loan whether it is for partnership or proprietor business
v. Type of the business
vi. Details in case of firm and companies associated with the loan and the current financial position of the
business
vii. the accurate financial statement of the business last two years or more
viii. the detail of the borrower’s bank account with another bank

The purpose of the credit is for the starting the new business or the expansion of the existing business or the
purchase of the stock.

5th week:

Clearing department:
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INTERNSHIP REPORT

During my fifth week, I delved into the intricacies of the clearing department and gained a comprehensive
understanding of its operations. Clearing is a vital process where banks reconcile their mutual accounts by
addressing the transactions involving various instruments presented by one bank and drawn on others, both
within the same city and outside. The National Institutional Facilitation Technologies (NIFT) serves as a pivotal
entity in the collection of clearing cheques from each branch, acting as an intermediary between banks and
clients.
There are two primary types of clearing within the banking system:
i. Inward Clearing: This involves the settlement of instruments and claims by other banks or branches of Silk
bank. In our branch of Silk bank, this includes cheques, drafts, and other instruments drawn by customers of
other banks or even by branches of Silk bank.
In clearing in the inward clearing process there are few things included which are mentioned as under

 Cross stamp on the face

 Clearing stamp on the front and the back
 The clearing stamp bearing the date of the next working day
 Payees account is credited and the stamp on the cheque and signature of the operational manager
 And before entering the cheque into the computer the stamp and the signature is to be verified and the
cheque is posted and drafted.

ii. Outward Clearing: This pertains to the clearing of cheques that cannot be directly cashed at the bank's
counter. Representatives from respective banks gather all the cheques and instruments drawn on them,
facilitating the settlement of accounts and performing the clearing function. This collective meeting of bank
representatives is referred to as the Clearing House. NIFT, acting on behalf of commercial banks, conducts
clearing operations in cities throughout the country.
In essence, the clearing department plays a crucial role in streamlining the settlement of accounts between
banks, ensuring a smooth and efficient financial ecosystem.
When the cheques of outward clearing are received then it is entered into the clearing register. Following
detail are entered in the register:

1. Serial No.
2. Account no. of the depositor
3. Depositor name
4. Drawer name
5. Drawee name
6. Cheque No.
7. Amount of the cheque
8. Cross stamp on the face of the cheque
9. And the clearing stamp
10. And the stamp on the back of the check payee account will be credited

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In the local clearing process, a systematic arrangement involves bundling covers

with the branch code stamp, total amount, and the number of instruments. The total amount in these bundles
should align with the corresponding entries in the Clearing Register. Subsequently, the cheques or instruments,
along with their respective bundle covers, are carefully packed into NIFT bags.
Before placement into the bag, a plastic seal number is mandatory, and it must be inscribed on both the bundle
cover and used to securely close the NIFT bag. This precautionary measure enhances safety, as the seal is non-
replaceable once opened. Consistency in the seal number on both the bag and the bundle cover is crucial,
serving as an indicator of potential tampering. Any discrepancy in seal numbers suggests interference with the
bag's contents. NIFT and the bank may take strict actions in response to such instances.

6th week:

Remittances Department:

During my last week, I had the opportunity to work in the pivotal Remittances Department, a crucial division
within the current banking landscape. This department plays a significant role in facilitating the transfer of
funds, managing various types of financial transactions, and receiving remittances from the Pakistani
community and other global sources.
I learnt that the money transfer and remittances have following features

 Quick and hassle-free transfer

 There are little charges of transfer
 And same day delivery to SILK BANK account holder
 SMS alert facility
 And for non-account holders the funds transfers online or via bank draft.

And also, when the nonresident person sends the fund to their family the bank is takes the following steps;

1. Alert with a phone call or SMS to customer

2. No charges or no deduction to the recipient.
3. Received the 8-digit PIN from receiver and then check it whether the remittance is received and fill the form
4. Then check the copy original national ID card
5. And then received the CNIC copy from the person
6. Then the verification Seal or stamp placed on the form
7. And the last step is that the person received the cash from the cashier

Western Union:

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In my role within this department, I handle customer transactions involving the

transfer of funds through Western Union. This service enables individuals to receive money from various cities
in Pakistan, accessible through Western Union branches, banks, post offices, or authorized money changers.
Upon initiating a transfer, the sender receives a PIN number from the relevant company or bank. This PIN is
associated with the recipient's name and cell phone number. To collect the funds, the recipient presents the PIN
number and submits the original copy of their Computerized National Identity Card (CNIC) at the designated
bank.
Upon verification, the bank releases the funds to the recipient. This process ensures a secure and regulated
method for individuals to send and receive money across different locations in Pakistan using the Western
Union service.
Telegraphic transfer (TT):

The process of a telegraphic transfer involves the completion of an application form, followed by the filling out
of a telegraphic transfer form by the designated officer. Subsequently, this form is forwarded to the specified
bank. Upon receipt, the concerned bank promptly processes the payment to the customer. Following the
transaction, a voucher is sent to the bank through mail.

Demand draft (DD):

A demand draft functions as a financial instrument issued at the request of the customer, serving to alleviate the
inconvenience of carrying excess currency. It becomes payable upon the customer's request and is issued by one
branch of the bank, with payment facilitated by another branch of the same bank.

MARKETING FUNCTIONS

Products offered by the bank:

1. Current Account

Online Express

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With Silk Bank Online Express you can enjoy complete online banking
solution, 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.

Basic Banking Account

Opening an account was never so easy. Now open an account with Silk Bank with no premium
balance requirement, with only Rs. 1,000.
Two deposit transaction and two cheque withdrawals are allowed, free of charges, per month. Bank
will charge Rs.100/- per transaction over and above the allowed free transactions.
ATM withdrawals from all Silk Bank ATM free. In case of withdrawal from BBA through the ATM
machine 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.
Al-In-One Account
Silkbank All-in-one Account provides you the ultimate security and protection, amazing banking
facilities and much more convenience……all absolutely free.

Unmatched Auto-Insurance Benefits!

Now can 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 in securing 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.

Lost Your Document? No Problem!

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Liberate yourself from the stress of losing your vital documents, such as
CNIC, Credit Card, Driving License and Passport. 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 utilize once a year
and is designed to reimburse you for the cost of re-insurance of these documents.

Liberate yourself from the fear of Home Burglary

Feel protect at home with silk bank All-one-one Account. Your account provides you free cover for
burglary of your house valuable up to Rs.100,000.

Protect for your Family in case of Accidental Death or Disability

Silk bank All-in-one Accounts provides you free world-wide cover of up to Rs.200, 000 for accidental
death and permanent disability.

What’s more, you get the following benefits free:

 Free Pay Oder & Demand Drafts
 Free Intercity Transactions
 Free VISA Debit Card
 Free withdrawals from all ATMs
 Free Internet Banking
 Free SMS Alerts
 Free Statements through Your Email
 Saving Accounts
Super Saver
 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

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PLS Account
Through Silk Bank Saving PLS account, can avail now the benefit of saving of a Saving Account with
the convenience of a current Account
 Profit paid out twice a year
 Monthly Profit of 5% on all Tiers
 VISA Debit Card
 Profit calculated on minimum balance every month
 Can be operated by Individuals or Companies
 Minimum balance required is Rs. 50,000

Foreign Currency Account

Invest in Silk bank Foreign Currency Account to earn remarkable profit 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

 Term Deposits

Munafa Hi Munafa
With Silk bank Munafa Hi Munafa Term Deposit Account can earn now the highest profit on a
monthly basis. Munafa Hi Munafa Term Deposit Account can open now with minimum balance of
only Rs. 100,000.
Salana Munafa
With Silkbank Munafa Hi Munafa Term Deposit Account can now earn the highest return on the
lowest investment and the following returns:
 Overdraft facility of up to 90%
 ATM/Debit Card with account
 Online banking, E-Statement and Internet banking facilities
 Pay Order/Demand Draft facility with base account

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7 Days’ Notice Deposits

Silk Bank Special Notice Account is also available for 7 and 30 days.

Other Term Deposits

With Silk bank Term Deposit Account can choose from a wide of tenures of 1 month, 3 months, 6
months and 1 year, based on customer requirements. With a minimum deposit of only Rs. 100,000,
have the opportunity to earn higher returns on your deposits.

Automated Teller Machine (ATM)

The Silk Bank Automated Teller Machine (ATM) launched means of providing customers with 24-
hour cash convenience. Over the years its success has encouraged the bank to expand its network to
major cities. In the past years, Silk Bank installed this convenience in Karachi, Lahore, Hyderabad,
Islamabad / Rawalpindi, Faisalabad, Multan, Gujranwala, Quetta, Sialkot and ISLAMABAD. Further
expansion plans to other cities are on the way.

 Debit Card Facilities

1. Funds transfer on ATM

A cardholder can transfer funds on the ATM from his account to any other account in any
branch of Silk Bank up to a maximum of Rs. 100,000 per day.

2. ATM Daily Withdrawal Limit

Previously the card holders were allowed to withdraw Rs 25, 000 per day, which has now been
enhanced as follows:
ATM Cash Withdrawal Limit:

Per transaction limit Daily limit

Rs. 25,000 Rs 100,000

3. Other Enhancements
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For the convenience of the Cardholders the following enhancements

have also been incorporated:
 Screens have now become bilingual and the card holder has the option to operate the
ATM in English or Urdu language.
 Fast cash maximum amount, which was previously Rs. 10,000, has now been enhanced
to Rs. 25,000.

 Guide Lines for Standardization of ATM Operations.

1. Cash Balancing Procedure

The actual cash in ATM is to be balanced with ATM Journal Roll, in order to identify the
suspect transaction
Following steps must be taken before end of day:
 Put the ATM in Supervisory mode.
 Obtain ATM Cash position on ATM Journal Roll

The physical Cash in ATM must be equal to the amount appearing in the ATM Receipt. Under
no circumstances the physical Cash should be placed shot in ATM while checking the cash in
ATM, cash in the Reject Bin should also be checked and taken into account and the print in
ATM journal for Reject Cash should also be verified.
In case the physical / actual cash in ATM is more than the cash appearing in the journal then it
means that customer’s account has been debited without cash disbursement, now the individual
suspected transactions are to be identified on the basis of the verification from ATM Journal
Roll, Branches should immediately complete process of “Automatic Credit” as per procedure
and time frame mentioned below.

2. Procedure and Timelines for Automatic Credit

 Same Bank-Same Branch:
Branch to credit customer account on next business day.
 Same Bank-Different Branch (within same city)

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ATM acquiring branch after verification of the transaction from

their ATM Journal Roll, must issue Credit Advice to the card issuing branch (the branch from
where the card was issued / account of the card holder is maintained) on next business day.
 Same Bank – Different branch (different cities)
ATM acquiring branch after verification of the transaction from their ATM Journal, Roll, must
issue Credit Advice to the card issuing branch (the branch from where the card was issued /
account of the card holder is maintained) on next business day. This whole process should be
completed within maximum 4 business days.

3. ATM Cash Replenishment

 ATM cash replenishment is done on daily basis, which is joint operation.

 The locking / opening of ATMs for replenishment are under dual control of the officers assigned
by the customer services manager.
 All remaining physical cash in ATM shall be taken out and counted.
 Fresh currency notes shall be fed in to ATM according to assigned branch limit.

COMMERCIAL FINANCE
Silk bank dedicated team of professionals truly understands the needs of professionals, agriculturists,
large and small business and other segments of the economy. They are the customer’s best resource in
making Silk bank’s products and services work for them.

TRADE FINANCE OTHER BUSINESS LOANS

There are two types of trade finance.
AGRICULTURAL FINANCE
Silk bank provides Agricultural Finance to solidify faith, commitment and pride of farmers who
produce some of the best agricultural products in the World.
a. Agricultural Finance Services:
“I Feed the World” program, a new product, is introduced by Silk bank with the aim to help farmers
maximize the per acre production with minimum of required input. Select farms will be made role
models for other farms and farmers to follow, thus helping farmers across Pakistan to increase
production.

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b. Agricultural Credit:
The agricultural financing strategy of Silk bank is aimed at three main objectives: -
 Providing reliable infrastructure for agricultural customers
 Help farmers utilize funds efficiently to further develop and achieve better production
 Provide farmers an integrated package of credit with supplies of essential inputs, technical
knowledge, and supervision of farming.

c. Agricultural Credit (Medium Term):

 Production and development
 Watercourse improvement
 Wells
 Farm power
 Development loans for tea plantation
 Fencing

PRICING STRATEGIES:
"The amount of money the customers pay for the product of a company"

Price serves as the monetary exchange for goods or services, a fundamental element in the marketing mix,
uniquely contributing to profit generation compared to other factors tied to costs.
In the context of banking, product pricing refers to the fees paid by customers for the services provided by the
bank. This typically encompasses elements such as markup/interest, bank charges, fees, and bank commissions.
These charges are outlined in the Schedule of Bank Charges (SOC), a dynamic document periodically issued by
the bank, usually every six months.
Silk Bank adopts a strategy of competitive and reasonable pricing for the array of services it extends to its
customers. Given the substantial influence of pricing in the banking sector, the bank carefully assesses customer
dynamics, its market position, and aligns pricing structures with evolving customer needs. The bank ensures
that its pricing reflects the value of the products and services in the market, thereby maintaining a balance
between competitiveness and profitability.
Distribution channels:
It can be defined as a medium by which a financial institution provides services to customers.

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There are following distribution channels:

 sale in the bank branch, −direct sales

 indirect distribution (via email, dealers, franchise, etc.)
 remote channels; in this group we can distinguish: - phone channels (phone service, teleservice, hotline)
- home banking
 self-service devices (ATMs, bank kiosks, etc.)
 Internet channels

It should be remembered that various banking services can be done through various distribution channels. Typ-
ically, a service is not closely linked to one channel. In banking practice, we can observe the presence of a ma-
trix relationship between services and distribution channels.

Promotion:
"All activities that a company undertakes to communicate and promote its products".

This is an age of competition. Numerous organizations are providing financial services to the customer.
These days everyone is facing pressure of competitors. Competition, the only way to Survive and grow for an
organization in the market places. Same is the case with banking companies.
There is large number of foreign and local banks working in the country and it has been noticed that they are
emphasizing much on their marketing strategies. In this scenario, the key for a bank to succeed and attract its
customer is adequate promotion of its products and services; the bank can attract and retain its customer
through:

 Sales Promotion
 Advertisement
 Direct Marketing
 Public Relation

The most prominent and important way to attract a large number of customers is the advertisement of bank and
its products/services. Silk bank has adapted different approaches for the accomplishment of this purpose.
Some brochures and promotional material have been printed but it is distributed mainly through the clients who
visit the branch for their day-to-day business or through the customers who come to get information about new
schemes launched by the bank.

HUMAN RESOURCE MANAGEMENT

The department responsible for all Human Resources and Personnel Management activities at Silk bank
encompasses various crucial functions, including but not limited to Job Analysis, Job Design, Job Description,
Job Redesign, Job Specification, Recruitment, Selection (utilizing written tests and interviews), Orientation,
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Training, Career Planning, Performance Appraisal, Compensation, and

Protection.
Silk bank is firmly committed to recruiting the most qualified individuals for approved positions, adhering to all
relevant employment laws. The bank's policy ensures equal opportunities for all candidates.
HR plays a central role in coordinating new hires or replacements by exploring both internal and external
sources to identify suitable candidates. This process involves a comprehensive approach to talent acquisition,
ensuring that the best-fit individuals contribute to the success of Silk Bank.

Employee recruitment and selection process:

While offering an opportunity in bank, Silk bank first introduces itself and then gives the criteria/ job require -
ment:

 Have bachelor degree

 Have an age not exceeding 26 years
 Be self-motivated and able to work independently.
 Excellent presentation skill
 All short-listed candidates will have to clear written test and interview
 To ensure a consistent and transparent process of all such job experience will be an additional considera-
tion
 Unit head line manager prepare a job description and raise a hiring request to HR duly approved by
group head against budgeted head count
 .HR will screen the applications on the given selection criteria
 Short listed candidates are requested to appear for assessment test.
 panel interview is conducted within two/ three weeks of short listing the candidates who clear the test.
 Selected candidates are then informed through letter of appointment.

Training Need Assessment:

At the commencement of each calendar year, an evaluation of training needs is conducted, seeking input from
field management to identify topics where employees require training. The primary aim is to enhance
performance efficiency and elevate the quality of services provided.
Once the training needs are approved by the Unit Head, the training schedule, including the date, duration of the
course, and participant details on a monthly basis, is communicated. In response, field management is once
again engaged to nominate employees who would benefit from training to enhance their working efficiency and
meet the required standards. This iterative process ensures a targeted and tailored approach to improving
employee skills and performance.
Employee Development:
Once the training needs assessment has been conducted and both qualitative and quantitative training courses
for employees have been identified, the decision is made to nominate officers for subject-specific training. This

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training aims to groom employees for career development, enabling them to

deliver efficient and personalized services to customers while enhancing overall performance.
The primary objective of these training courses is twofold: firstly, to enhance customer service efficiency, and
secondly, to improve working standards in alignment with procedural instructions, manuals, credit policies, and
prudential regulations set forth by the State Bank of Pakistan.

Performance Management:
The performance management system focuses on key areas such as:

 Create an environment that encourages employee to deliver performance.

 Distinguish good performance from poor performance and recognize good performance through
process and reward high performances.
 Provide all possible means and resources to help poor performance to improve.
 Where the poor performance fails to show progress/ improvement, define a uniform process that ad-
dress such situations.

Objectives
Following are the objectives:

 To initiate a systematic interview between the subordinate and their supervisors to examine the perfor-
mance.
 To inform subordinate on the way their performance is evaluated and the aspects which have taken its
consideration in evaluation.
 To help the supervisor in examining the requirements for training development.
 To ascertain performance levels against agreed goals.

Compensation Policy:

Silk Bank's leadership has proactively initiated a privatization-driven revision of employee salary packages
across all categories, positioning the bank as an industry leader in remuneration. This commitment to
competitive compensation has been a catalyst for outstanding performance among staff, fostering a notable
upward trend in the banking sector.
The bank's management consistently recognizes and rewards high performance through salary adjustments,
career promotions, and extraordinary bonuses. This strategic approach reflects the bank's dedication to fostering
a motivated and skilled workforce.
In line with this commitment, the bank has undertaken a comprehensive review of employee compensation,
resulting in a revised salary package that appropriately values and compensates its workforce. The bank
prioritizes equal employment opportunities (EOE) during the selection process, ensuring that staff are chosen
based on academic qualifications, talent, skills, and experience.

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To further support employee growth and adaptability to workplace challenges,

Silk Bank has implemented robust career development programs. These initiatives are designed to equip
employees at all levels with the necessary skills and knowledge, fostering personal and professional
advancement.
By extending these opportunities across all levels, the bank ensures that its staff can benefit from tailored career
development programs that address both individual needs and the organization's goals. This holistic approach
underscores Silk Bank's commitment to creating a dynamic and rewarding work environment.

FINANCAL ANALYSIS

Ratio Analysis:
Following are some financial ratios of SILK BANK for the half year of 2020:

Current assets 2020

Cash and balance with treasury 12,018,975
banks
Balance with other banks 1,145,541
Lending to financial institutions 13,796,311
 Investments 82,520,933 Cur-
Advances 102,778,737 rent
Fixed Assets 5,670,953 ratio:
Intangible Assets 225,426
Deferred tax assets- net 4,128,159 Current
Other Assets- net 20,420,316 assets/
cur- Assets held for sale 2,229,729 rent lia-
bili- Total Current Assets 244,935,080 ties
Bill payable 1,449,196 =
Borrowings 60,551,320
Deposits and other accounts 159,318,442
Subordinated Debts 2,206,218
Deferred tax liabilities -
Other liabilities 9,270,153
Total Liabilities 232,795,329
244,935,080 / 232,795,329
= 1.052times

Interpretation:
The current ratio indicates the ability of the organizations on to satisfy the current liabilities with the
current assets.

 Debt ratio:
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Total liabilities/total assets

=232,795,329/ 244,935,080
=0.9504times

Interpretation:
This ratio calculates the capital structure of the organization which contains debts and equity or the firm.

 Working capital:

Current assets- current liabilities

= 244,935,080 - 232,795,329
=12,139,751

Interpretation:
It indicates a company's liquid assets (after meeting short term liabilities) relative to its need for liquidity.

CRITICAL ANALYSIS

Following is the is the detailed analysis of Marketing functions/ practices at Silk bank:

1. Analysis of Micro Environment:

 Customers: Understanding customer needs, preferences, and behaviors in banking services, such as
savings, loans, and investment preferences.
 Suppliers: Assessing relationships with technology providers, security services, and other key suppliers
for efficient operations.
 Intermediaries: Evaluating the role of intermediaries like brokers and agents in selling financial
products.
 Competitors: Analyzing other banks, financial institutions, and emerging fintech companies in the
market.
 Internal Stakeholders: Assessing the influence of bank employees, management, and shareholders on
marketing strategies.

2. Analysis of Macro Environment:

 Political: Examining government regulations and policies affecting the banking industry, such as
interest rate regulations and financial stability laws.
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 Economic: Monitoring economic indicators like inflation rates, interest

rates, and GDP growth impacting borrowing and investment decisions.
 Social: Understanding cultural trends, demographics, and societal attitudes towards banking services.
 Technological: Embracing technological advancements in online banking, mobile apps, and
cybersecurity.
 Environmental: Considering sustainability practices and the impact of green banking initiatives.
 Legal: Compliance with banking laws, data protection regulations, and other legal requirements.

3. Industry Analysis:
 Porter's Five Forces: Evaluating the bargaining power of customers, suppliers, the threat of new
entrants, the threat of substitutes, and the intensity of competitive rivalry within the banking industry.
 SWOT Analysis: Identifying internal strengths and weaknesses, along with external opportunities and
threats in the banking sector.
 Industry Lifecycle: Recognizing the stage of the banking industry lifecycle to tailor marketing
strategies accordingly.

4. Forecasting Demand:
 Market Research: Understanding customer preferences through surveys, focus groups, and feedback
mechanisms.
 Economic Indicators: Utilizing economic indicators to forecast demand for loans, investments, and
other banking services.
 Technology Trends: Anticipating demand for new digital banking services and technology-driven
solutions.
5. Customer Analysis:
 Segmentation: Categorizing customers based on demographics, financial behavior, and banking needs.
 Targeting: Identifying high-value segments for personalized marketing and services.
 Customer Lifecycle Analysis: Understanding the customer journey from onboarding to long-term
relationships.

6. Competitor Analysis:
 Identifying Competitors: Analyzing other banks, credit unions, and non-traditional competitors such as
fintech firms.
 Product and Service Offerings: Assessing the range and quality of banking products and services.
 Market Share: Understanding the market share of competitors and potential areas for differentiation.

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7. STP (Segmentation, Targeting, Positioning):

 Segmentation: Dividing the market into segments like retail, corporate, and investment banking.
 Targeting: Focusing on specific customer segments based on profitability and strategic goals.
 Positioning: Establishing a unique position, such as being customer-centric, technologically advanced,
or socially responsible.
8. Marketing Mix Strategies:
 Product: Offering a diverse range of banking products, including savings accounts, loans, credit cards,
and investment services.
 Price: Setting competitive interest rates, fees, and charges while considering value-added services.
 Place: Expanding the distribution channels through online banking platforms, ATMs, and physical
branches.
 Promotion: Utilizing marketing channels like digital advertising, social media, and sponsorships to
build brand awareness and trust.

SWOT ANALYSIS

The SWOT Analysis of SILK BANK is listed below

STRENGHTS

Public Confidence:
The bank enjoys a high level of trust and confidence from the public, contributing to its positive reputation.
Sound Financial Strength:
The institution has a robust financial position, indicating stability and resilience in the face of economic
challenges.
Highest Profitability:
Demonstrates consistent high-profit margins, showcasing strong financial performance and effective
management.
Vast Operational Network:
The bank possesses an extensive operational network, providing widespread accessibility for customers and
facilitating efficient services.
Role in Economic Development:
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Actively contributes to economic development by participating in various

financial initiatives and supporting growth-oriented projects.

Utility Bills Collections:

Offers utility bill collection services, enhancing customer convenience and expanding the range of financial
transactions.
Corporate Branches:
Presence of corporate branches reinforces the bank's commitment to serving business clients and fostering
corporate relationships.
Evening Banking:
Provides evening banking services, catering to the needs of customers who may require financial services
beyond regular business hours.
Efficient Home Remittance:
Demonstrates efficiency in handling home remittances, contributing to a seamless and reliable process for
customers.

Recognition of Staff Hard Work:

Acknowledges and rewards the hard work of its staff, fostering a positive and motivated work environment.

WEAKNESS
Inadequate, Poorly Placed Network Technology:
The bank experiences shortcomings in its network technology infrastructure, potentially leading to
operational inefficiencies.
Complex MIS (Management Information System):
The existing MIS is complex, indicating a need for streamlining and improvement in information
management processes.
Lack of Long-Term & Short-Term Plans:
The absence of comprehensive long-term and short-term plans could hinder strategic direction and goal
achievement.
Less Share in Import & Export Business:
The bank holds a smaller market share in import and export business, indicating a potential area for growth
and market penetration.

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Need for Better Service Policy:

There is a recognized need for enhancing service policies to meet evolving customer expectations and
industry standards.
Frequent Change in Senior Management:
Frequent changes in senior management may contribute to instability and hinder the development of a
consistent organizational strategy.

OPPORTUNITIES
New Style Management:
Embracing innovative management styles can enhance organizational effectiveness and adaptability to
changing market dynamics.
Introduction of New Products and Services:
Launching new and innovative financial products and services can attract a broader customer base and
generate additional revenue streams.

Introduction of New Technology & Electronic Banking:

Embracing new technologies and expanding electronic banking services can enhance customer experience
and operational efficiency.
Capital Management & Equity Financing:
Effective capital management and exploring equity financing options can provide the necessary resources
for growth and expansion.
Secondary Market Operations:
Engaging in secondary market operations presents an opportunity to diversify revenue streams and
participate in broader financial markets.
New Deposit Scheme:
Introducing a new deposit scheme can attract new customers and encourage existing ones to increase their
deposits.

THREATS
Establishment of New Private Financial Institutions & Expansion:
The emergence of new private financial institutions and their expansion poses a competitive threat,
potentially impacting market share.
Government-Sponsored Schemes:
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Government-sponsored financial schemes may divert customers and funds

away from the bank, affecting its market position.
Political Pressure:
Political pressure or regulatory changes can pose challenges to the bank's operations and strategic initiatives.
Reducing Branch Network:
A reduction in the branch network may limit the bank's accessibility and customer reach, impacting its
market presence.
New Products from Private Pakistani & Foreign Banks:
The introduction of new and attractive products by competitors may lure customers away, affecting the
bank's competitiveness.
Non-Banking Institutions:
Competition from non-banking financial institutions poses a threat, especially if they offer comparable or
superior financial services.

CONCLUSIONS

During my six-week internship at Silk Bank Ltd, I gained valuable experience and insights into the banking
industry. I observed both positive aspects contributing to the bank's success and identified some weaknesses
within the Silk bank branches.
One commendable feature is the widespread online connectivity of most branches to the main bank. The secure
and efficient online system impressed me, reducing the likelihood of errors and saving time. Additionally, the
presence of ATM machines in almost all branches enhances customer convenience. The overall functioning of
Silk Bank appears smooth, customer-oriented, and well-managed.
However, I noticed certain drawbacks, particularly concerning the professional qualifications of some
employees. The lack of a professional degree can lead to differences in service quality. Some employees may
not give adequate attention to customers or use appropriate business language, whereas professionals exhibit
better manners and attentiveness.
I observed a reluctance in the management to allow interns to work in the cash department due to risk aversion.
Some branches lack full decoration, and the absence of rotating cameras in certain locations poses a security
concern.
In my analysis, I found a decrease in the net profit margin and gross spread ratio, indicating areas that require
improvement. On a positive note, the increase in non-interest income to total income is a favourable trend. The
debt ratio has decreased over the years, while the return on assets (ROA) has improved, reflecting efficient asset
utilization. However, there is room for improvement in the return on equity (ROE). The price-earnings ratio is
stabilizing, but the overall return on equity has decreased.

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In conclusion, while Silk Bank is conducting business well, there is a need for
more effective and stabilized organizational policies. Strengthening these policies would make the organization
more reliable and robust in the long run.

RECOMMENDATIONS:
On the basis of SWOT analysis of the Bank the following suggestions and recommendations are given:

 Bank should try to get rid of the political influence to be able to compete in the industry with prudent
and strong policies.
 The undue reliance on the public sector be minimized and ventures of private sectors should be taken as
well.
 Redefining of rules, regulations and policies should be made implemented at all costs.
 Efforts of great importance to be made for the over-the-counter services of general banking making it
simpler and faster to get a better response of the customers.
 The behavior of the employee, especially on the counter has to be strictly monitored and checked.
 The still existed bureaucratic approval system has to be demolished.
 All advances should be made by getting the maximum security and should focus on productive work.
 Better and comprehensive long-term and short-term planning should be made to forecast the future
needs.
 There is a possibility of establishing a task force to ascertain the effectiveness of the policies being im-
plemented.
 The Bank should develop a comprehensive recruitment policy to make only the competent ones to be on
the job.
 There is a still a vast pool of incompetent employees that has to right sized.
 There is a lack of promotional element in the planning and budgetary decisions of the Bank that has to
think seriously.
 All branches of the Bank should be computerized for increasing the effectiveness and efficiency of its
employees.
 Efforts should be continued to keep the powers of employee’s union to the minimum, like the current
situation.
 Promotions must not be delayed and should be made on time to further increase the commitment and ef -
ficiency of the employees.
These and many other that can make a good set of recommendations, which have to be made possible to escape
from the threats and weaknesses and the risks in environment that surrounds the Bank. The management do
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consider the policy matter that is not helping the Bank, but is still in practice due
the absence of prudentially regulated system to protect them and the Bank.

Efforts have been made with serious concern to give Silk bank a status that it has to maintain by having
practices of:

 Right sizing of the employees.

 By closing unprofitable branches.
 By introducing a merit-based selection criterion.
 Promotions made conditional with qualifications.

REFERENCES
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SILK - Stock quote for Silkbank Limited - Pakistan Stock Exchange (PSX). (n.d.)

Silkbank Limited - Yes We Can !!!|. (n.d.)

Silk.pk | Silkbank Ltd. annual balance sheet - WSJ. (n.d.) data/quotes/PK/SILK/financials/annual/balance-sheet

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