Internship Report Silk Bank

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Internship Report Silk Bank
EXECUTIVE SUMMARY
Silk bank is the Public sector financial institution. The Silk bank was established on
1949, to serve as an agent to the SBP. Silk bank head office is in Karachi. It has 149
regional branches and 1! overseas branches. Silk bank is a "# share owned b$ the
%overn&ent of Pakistan '%(P). Silk bank*s total assets stood at PK+!, billion on &id
of ,,9. This included total earning assets of about PK+-! billion with gross loan
.ortfolio of PK+14, billion. The bank also has an invest&ent .ortfolio of PK+1/1
billion, which co&.rises treasur$ securities, cor.orate bonds, shares and other securities.
This re.ort is based on internshi. in Silk bank branch na&e. It is a fa&ous and re.uted
bank of Pakistan. Silk bank &aintains first .osition in banking sector in Pakistan.
This re.ort is based on the activities, which are .erfor&ed in this bank. This re.ort
contains Banking services, co&.etitive anal$sis, S0(T anal$sis, bank tariffs and
e1change rates of Silk bank. There are also stated the activities which I .erfor&ed during
&$ internshi. in the branch. In this re.ort I also discuss the industr$ anal$sis of banking
s$ste& in Pakistan. 2uring the internshi. I was observed the 3obs task of the e&.lo$ees
and at the we find hi& a lot of .roble&s at the &anage&ent level.
So I 4ave &entioned all the .roble&s fro& which the branch has been suffered have
given the suggestion that can the$ solve branch .roble&s5 There are also &entioned the
wa$ of invest&ent, rates of invest&ent, and all t$.es of financing and loans facilities the
Silk bank .rovides. The .roble&s in this branch are also discussed. This re.ort also
inti&ates about the dail$ reserves, which are re6uired b$ the branch to &eet the need of
its dail$ transactions.

Internship Report Silk Bank

ACKNOWLEDGMENT
At the outset, I feel obliged to express my profound gratitude to the Branch
Manager of the Silkbank G-9, ho has throughout my internship pro!ided
me ith endless help, !aluable guidance and encouragement" #er
experience, expertise, flexibility and ability to open ne !istas of knoledge
ha!e contributed much in our educational pursuit"
I am deeply indebted to my chosen bank i"e Silkbank and their customers
ho participated in the study" I am especially thankful to all the staff for
agreeing to pro!ide the re$uired data and gi!e me priceless knoledge"
I oe my greatest gratitude to my parents for their continuous support,
assistance, guidance, lo!e and patience ithout hich I could not ha!e
completed this internship and report in such a short span of time"
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Internship Report Silk Bank
TABLE OF CONTENTS
81ecutive Su&&ar$9999999999999...99999999999999
:cknowledge&ent999999999999999...999999999999..7
Silk Bank999999999999999999...9999999999999"
8&.lo$ees 4ierarch$999999999999999..99999999999.-
Branch Introduction999.9999999999..99999999999999/
0hat I 2id5 9999999999999999.99999999999999./
Services of Silk Bank99999999999...999999999999999.1,
Salient ;eatures999999999999..9999999999999999...11
2e.art&entation99999999999999..99999999999999..17
:..lication of <earned =once.ts999999999999999..999999...1/
;inancial :nal$sis99999999999999999999..9999999 1!
S0(T :nal$sis9999999999999..99..99999999999991
P8ST :nal$sis999999999999999999999.999999.997
Suggestions >+eco&&endation9999999..999999999...9999.94
=onclusion9999999999999999999999.999999.99..-
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Internship Report Silk Bank
Silk Bank
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.
Banks new identity Silkbank is a name with a meaning that endorses our
values. !he name takes its inspiration from "#ilk$, a natural element known for
its uni%ue properties. Inspiration also comes from the #ilk route which has
been a corridor for trade and commerce between &sia and the rest of the world
for centuries.
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Internship Report Silk Bank
Employees Hie!"#y
-
$RESIDENT
$RESIDENT
EXECUTIVE VICE $RESIDENT
EXECUTIVE VICE $RESIDENT
VICE $RESIDENT
VICE $RESIDENT
ASSISTANT VICE $RESIDENT
ASSISTANT VICE $RESIDENT
OFFICER GRADE I
OFFICER GRADE I
OFFICER GRADE %
OFFICER GRADE %
OFFICER GRADE &
OFFICER GRADE &
MESSENGER
MESSENGER
$EON
$EON
SWEE$ER
SWEE$ER
B
R
A
N
C
H

H
I
E
R
A
R
C
H
Y
B
R
A
N
C
H

H
I
E
R
A
R
C
H
Y
SENIOR VICE $RESIDENT
SENIOR VICE $RESIDENT
MEMBER BOARD
MEMBER BOARD
SENIOR EXECTIVE VICE'$RESIDENT
SENIOR EXECTIVE VICE'$RESIDENT
Internship Report Silk Bank
B!("# I()o*+")io(
I did internshi. in 'Silk bank), %?9 Branch, Isla&abad. This branch was founded in @ul$
19-. ;ro& last &an$ $ears this branch is not onl$ achieving its targets of de.osits and
advances rather it re&ains above the targets. :ccording to the financial record of last $ear
this branch was earning &ore than ,# of total .rofit of the region.
8ver$ $ear the targets of this branch are increasing b$ , to " .ercent but still there is a
.otential in the &arket to &eet these additional targets. This branch is .erfor&ing its
functions in traditional st$le and now it has been converted into an online branch.
W#!) I Di*,-
:fter 3oining the bank for internshi. initiall$ it was so difficult for &e to get the attention
of the e&.lo$ees, ever$ bod$ was terribl$ engaged in there own activities, no bod$ was
having ti&e to acco&&odate &e. This was a crucial ti&e for &e to get the attention of
Silk bankAs &anage&ent and to &ake the& realiBe that their valuable infor&ation is so
&uch necessar$ for the u. gradation of &$ knowledge and for the co&.letion of the task
which I was assigned b$ the institution. But ver$ soon I succeeded in &aking relationshi.
with the to. influence .eo.le and with the hel. of these .eo.le I started .er&eated in the
s$ste&. This was &$ first ste. towards the co&.letion of &$ task and with the .assage of
ti&e the$ realiBed that the$ could also utiliBe &$ efforts in a .roductive wa$ to &ini&iBe
their burden.
The$ .rovided &e their ti&e and infor&ation, which hel.ed &e to enhance &$
knowledge, and the$ also shared their e1.eriences with &e, which I believe that it would
be hel.ful in &$ .ractical life. ;irst two weeks I worked in o.eration de.art&ent, for
ne1t two weeks I worked in credit de.art&ent and for rest of the ti&e I worked with
Business Canager where I learned lot of things including how to deal with cor.orate
custo&ers, with individual custo&er and how loans can be recovered fro& the custo&ers.
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Internship Report Silk Bank
2uring the internshi. session I got the chance to .erfor& on different activities, which are
listed below, and short e1.lanation is also given.
A""o+() Ope(i(. Dep!)me()
To o.en an account the custo&er have to &eet the general banking &anager with an
introducer 'the .erson who is going go introduce that .erson in the bank) and get an
a..lication for& used for account o.ening. 2ifferent color?coded a..lication for&s are
available for each t$.e of account. :long with the for& a card for s.eci&en signature is
also su..lied to custo&er. Canager has ever$ right not to acce.t this contract if he is not
satisfied b$ the details .rovided b$ the custo&er. In case the contract is acce.table to
both, now it is read$ to o.en the account for&all$.
A""o+() Types
Though in theor$ the$Are &an$ t$.es of accounts but co&&onl$ account o.erators can be
classified in one of the following categories, each have different docu&entation
re6uire&entsD
Single
@oint
Partnershi.
Private <i&ited
Ce*i) Dep!)me()
The earning of a co&&ercial bank is chiefl$ derived fro& interest charges on loans and
discounts it. Eow loans are recogniBed as advances or finances. The advances are &ade
through the de.osits that are ke.t in the bank b$ the custo&ers. The bank .a$s .rofit on
the de.osited a&ount and receives &ark u. on the advances &ade of different a&ounts.
Silk bank introduced the &ark u. based advancing in @an1, 19!" when the Isla&iBation
of the econo&$ was influence under this s$ste& of advancing the bank is entitled to
receive a constant su& of &one$ on the a&ount that is outstanding on the account of the
.art$.
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Internship Report Silk Bank
Foei.( E/"#!(.e
To .ro&ote flow of foreign e1change in the countr$, the %overn&ent of Pakistan started a
new sche&e of o.ening of bank accounts in foreign currenc$. These accounts were
entitled to receive .rofit .ercentage in sha.e of the currenc$ in which the account was
ke.t '2ollar account shall be .aid .rofit in dollars). This has increased the flow of foreign
currenc$ es.eciall$ fro& the Pakistani foreign residents, who used to send &one$ to their
fa&ilies at ho&e. The State Bank of Pakistan was given s.ecial rights to control and
&onitor the .erfor&ance of the F:uthoriBed 2ealersG in foreign e1change accounts.
A+)#oi0e* De!le is a .erson or an institution, which can deal with the foreign
e1change. The authorit$ is given b$ SBP to all those scheduled Banks who have ade6uate
trained staff and facilities. These scheduled banks are given license to deal in foreign
currenc$ transactions.
Remi))!("e Dep!)me()
+e&ittance de.art&ent .rovides services to the custo&er of the bank. The &ain function
of this de.art&ent is transfer of funds.
INSTRUMENTS OF BILLS AND REMITTANCE DE$ARTMENT
The instru&ents that are handled in the +e&ittance de.art&ent are as followD
2e&and 2raft.
Cail transfer.
Telegra.hic transfer.
Pa$ order.
Pa$ sli..
(B= 'outward bill for collections).
IB= 'inward bill for collections).
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Internship Report Silk Bank
Cle!i(. Dep!)me()
There is no legal obligation on a banker to collect che6ues drawn u.on other banks for a
custo&er. 4owever it is function of al&ost ever$ &odern bank of the collection of
che6ues and bills on behalf of the custo&er.
=learing de.art&ent services are .rovided in order to &ake arrange&ents for the
econo&ic collection of the che6ues, 22 and other negotiable instru&ents. : large .art of
this work is carried on through the clearinghouse.
:fter 3oining the bank in internshi. I got the .ractical e1.osure of all the above?described
activities. The &echanis& is not too si&.le to understand easil$ but still lots of
co&.le1ities have been solved.
SERVICES OF SILK BANK1
Services are he out.uts of the fir&, which are in intangible for&.
DEMAND DRAFTS
If $ou are looking for a safe, s.eed$ and reliable wa$ to transfer &one$, $ou can now
.urchase Silk bankAs 2e&and 2rafts at ver$ reasonable rates. :n$ .erson whether an
account holder of the bank or not, can .urchase a 2e&and 2raft fro& a bank branch.
SWIFT SYSTEM
The S0I;T s$ste& 'Societ$ for 0orldwide Inter bank ;inancial Teleco&&unication) has
been introduced for s.eed$ services in the area of ho&e re&ittances. The s$ste& has
built?in features of co&.uteriBed test ke$s, which eli&inates the &anual a..lication of
tests that often cause dela$ in the .a$&ent of ho&e re&ittances.
Hsing the Silk bank network of branches, $ou can safel$ and s.eedil$ transfer &one$ for
our business and .ersonal needs.
LETTERS OF CREDIT
Silk bank is co&&itted to offering its business custo&ers the widest range of o.tions in
the area of &one$ transfer. If $ou are a co&&ercial enter.rise then our <etter of =redit
service is 3ust what $ou are looking for.
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Internship Report Silk Bank
TRAVELER2S CHE3UES
TravelerAs che6ues are negotiable instru&ents, and there is no restriction on the .eriod of
validit$ of the che6ues. +u.ee travelerAs che6ue is available at all /,, branches of Silk
bank this can be encashed in all 4,, branches of Silk bank. There is no li&it on .urchase
of this che6ue. It is one of the safest wa$s for carr$ing &one$.
$AY ORDER
Silk bank .rovides another reason to transfer $our &one$ using our facilities. Silk bank
.a$ orders are a secure and eas$ wa$ to &ove $our &one$ fro& one .lace to another.
:nd, as usual, Silk bank charges for this service are e1tre&el$ co&.etitive.
MAIL TRANSFERS
Cove $our &one$ safel$ and 6uickl$ using Silk bank Cail Transfer service. :nd Silk
bank also offers the &ost co&.etitive rates in the &arket. The$ charges +s ",I? e1change
rate and +S /"I? .ostage charges on issuing &ail transfer.
FOREIGN REMITTANCES1
To facilitate its custo&ers in the area of 4o&e +e&ittances, Silk bank has taken a nu&ber
of &easures toD
Increase ho&e re&ittances through the banking s$ste&
Ceet the SBP directivesIinstructions for ti&el$ and .ro&.t deliver$ of
re&ittances to the beneficiaries
S!lie() Fe!)+es1
+s ?&illion are re6uired to o.en an account and there is no &a1i&u& li&it.
Profit is .aid on half $earl$ basis on &onthl$ balances.
The rates of .rofit var$ according to the slabs of de.osit. (n 2e.osits of +s.
&illion to ,,,, &illion, the rate fluctuates fro& 1.4 to 1./"
It is a checking account and there is no li&it of withdrawals.
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Internship Report Silk Bank
SILK BANK is i(4ol4e* i( )#e 5ollo6i(.1
Invest&ent into the ca.ital &arket
Introduction of ca.ital &arket accounts 'under .rocess)
Silk bankAs involve&ent in ca.ital &arkets is e1.ected to increase its earnings, which
would result in better returns offered to account holders
COMMERCIAL FINANCE
Silk bank dedicated tea& of .rofessionals trul$ understands the needs of .rofessionals,
agriculturists, large and s&all business and other seg&ents of the econo&$. The$ are the
custo&erAs best resource in &aking Silk bankAs .roducts and services work for the&.
TRADE FINANCE OTHER BUSINESS LOANS
There are two t$.es of trade finance.
AGRICULTURAL FINANCE
Silk bank .rovides :gricultural ;inance to solidif$ faith, co&&it&ent and .ride of
far&ers who .roduce so&e of the best agricultural .roducts in the 0orld.
!7 A.i"+l)+!l Fi(!("e Se4i"es1
8I Fee* )#e Wol*9 .rogra&, a new .roduct, is introduced b$ Silk bank with the ai& to
hel. far&ers &a1i&iBe the .er acre .roduction with &ini&u& of re6uired in.ut. Select
far&s will be &ade role &odels for other far&s and far&ers to follow, thus hel.ing
far&ers across Pakistan to increase .roduction.
:7 A.i"+l)+!l Ce*i)1
The agricultural financing strateg$ of Silk bank is ai&ed at three &ain ob3ectivesD?
Providing reliable infrastructure for agricultural custo&ers
4el. far&ers utiliBe funds efficientl$ to further develo. and achieve better
.roduction
Provide far&ers an integrated .ackage of credit with su..lies of essential in.uts,
technical knowledge, and su.ervision of far&ing.
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Internship Report Silk Bank
"7 A.i"+l)+!l Ce*i) ;Me*i+m Tem<1
Production and develo.&ent
0atercourse i&.rove&ent
0ells
;ar& .ower
2evelo.&ent loans for tea .lantation
;encing
DE$ARTMENTATION
CASH DE$ARTMENT
=ash de.art&ent .erfor&s the following functions
Re"eip)
The &one$, which either co&es or goes out fro& the bank, its record should be ke.t.
=ash de.art&ent .erfor&s this function. The de.osits of all custo&ers of the bank are
controlled b$ &eans of ledger accounts. 8ver$ custo&er has its own ledger account and
has se.arate ledger cards.
$!yme()s
It is a bankerAs .ri&ar$ contract to re.a$ &one$ received for this custo&erAs account
usuall$ b$ honoring his che6ues.
T#e Re=+isi)es o5 C#e=+e
There is no .rescribed for& of words or design of a =he6ue, but in order to fulfill the
re6uire&ents &entioned in Section - above the =he6ue &ust have the following.
a) It should be in writing
b) The unconditional order
c) 2rawn on s.ecific banker onl$
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Internship Report Silk Bank
d) Pa$&ent on 2e&and
e) Su& =ertain in &one$
f) Pa$able to a s.ecific .erson
g) Signed b$ the drawer
$!)ies )o C#e=+e
The nor&al =he6ue is one in which there is a drawer, a drawee banker and a .a$ee, or no
.a$ee but bearer.
a) The 2rawer
b) The 2rawee
c) The Pa$ee
CLEARANCE DE$ARTMENT
: clearinghouse is an association of co&&ercial banks set u. in given localit$ for the
.ur.ose of interchange and settle&ent of credit clai&s. The function of clearinghouse is
.erfor&ed b$ the central bank of a countr$ b$ tradition or b$ law. In Pakistan, the
clearing s$ste& is o.erated b$ the SBP. If SBP has no office at a .lace, then Silk bank, as
a re.resentative of SBP act as a clearinghouse.
:fter the 0orld 0ar II, a ra.id growth in banking institutions has taken .lace. The use of
che6ues in &aking .a$&ents has also widel$ increased. The collection as settle&ent of
&utual obligations in the for& of che6ues is now a big task for all the co&&ercial bank.
0hen =he6ue is drawn on one bank and the holder '.a$ee) de.osits the sa&e in his
account at the bank of the drawer, the &utual obligation are settled b$ the internal bank
ad&inistration and there arises no inter bank debits fro& the use of che6ues. The total
assets and total liabilities of the bank re&ain unchanged.
In .ractice, the .erson receiving a =he6ue as rarel$ a de.ositor of the che6ue at the sa&e
bank as the drawer. 4e de.osits the che6ue with his bank other than of .a$er for the
collection of the a&ount. Eow the bank in which the che6ue has been de.osited beco&es
a creditor of the drawerAs bank. The de.ositor bank will .a$ his a&ount of the che6ue b$
transferring it fro& cash reserves if there are no offsetting transactions. The banks on
which the che6ues are drawn beco&e in debt to the bank in which the che6ues are
de.osited. :t the sa&e ti&e, the creditorsA banks receive large a&ounts of che6ues drawn
on other banks giving clai&s of .a$&ent b$ the&.
The eas$, safe and &ost efficient wa$ is to offset the reci.rocal clai&s against the other
and receive onl$ the net a&ount owned b$ the&. This facilit$ of net inter bank .a$&ent is
.rovided b$ the clearinghouse.
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Internship Report Silk Bank
The re.resentatives of the local co&&ercial banks &eet at a fi1ed ti&e on all the business
da$s of the week. The &eeting is held in the office of the bank that officiall$ .erfor&s the
duties of clearinghouse. The re.resentatives of the co&&ercial banks deliver the che6ues
.a$able at other local banks and receive the che6ues drawn on their bank. The che6ues
are then sorted according to the bank on which the$ are drawn. : su&&ar$ sheet is
.re.ared which shows the na&es of the banks, the total nu&ber of che6ues delivered and
received b$ the&. Totals are also &ade of all the che6ues .resented b$ or to each bank.
The difference between the total re.resents the a&ount to be .aid b$ a .articular bank
and the a&ount to be received b$ it. 8ach bank then receives the net a&ount due to it or
.a$s the net a&ount owed b$ it.
ADVANCES DE$ARTMENT
:dvances de.art&ent is one of the &ost sensitive and i&.ortant de.art&ents of the bank.
The &a3or .ortion of the .rofit is earned through this de.art&ent. The 3ob of this
de.art&ent is to &ake .ro.osals about the loans. The =redit Canage&ent 2ivision of
4ead (ffice directl$ controls all the advances. :s we known bank is a .rofit seeking
institution. It attracts sur.lus balances fro& the custo&ers at low rate of interest and
&akes advances at a higher rate of interest to the individuals and business fir&s. =redit
e1tensions are the &ost i&.ortant activit$ of all financial institutions, because it is the
&ain source of earning. 4owever, at the sa&e ti&e, it is a ver$ risk$ task and the risk
cannot be co&.letel$ eli&inated but could be &ini&iBed largel$ with certain techni6ues.
$i("iples o5 A*4!("es
There are four .rinci.les, which &ust be dul$ observed while advancing &one$ to the
borrowers.
Safet$
<i6uidit$
2is.ersal
+e&uneration
Foms o5 Lo!(s
In addition to .urchase and discounting of bills, bankers in Pakistan generall$ lend in the
for& of cash finance, overdrafts and loans. Silk bank .rovides advances to different
.eo.le in different wa$s as the case de&and.
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Internship Report Silk Bank
!< C!s# Fi(!("e
This is a ver$ co&&on for& of borrowing b$ co&&ercial and industrial concerns and is
&ade available either against .ledge or h$.othecation of goods, .roduce or &erchandise.
In cash finance a borrower is allowed to borrow &one$ fro& the banker u. to a certain
li&it, either at once or as and when re6uired. The borrower .refers this for& of lending
due to the facilit$ of .a$ing &arku.Iservices charges onl$ on the a&ount he actuall$
utiliBes.
If the borrower does not utiliBe the full li&it, the banker has to lose return on the un?
utiliBed a&ount. In order to offset this loss, the banker &a$ .rovide for a suitable clause
in the cash finance agree&ent, according to which the borrower has to .a$
&arku.Iservice charges on at least on self or one 6uarter of the a&ount of cash finance
li&it allowed to hi& even when he does not utiliBe that a&ount.
:< O4e*!5)>R+((i(. Fi(!("e
This is the &ost co&&on for& of bank lending. 0hen a borrower re6uires te&.orar$
acco&&odation his banker allows withdrawals on his account in e1cess of the balance,
which the borrowing custo&er has in credit, and an overdraft thus occurs. This
acco&&odation is generall$ allowed against collateral securities. 0hen it is against
collateral securities it is called FSecured (verdraftG and when the borrowing custo&er
cannot offer an$ collateral securit$ e1ce.t his .ersonal securit$, the acco&&odation is
called a F=lean (verdraftG. The borrowing custo&er is in an advantageous .osition in an
overdraft, because he has to .a$ service charges onl$ on the balance outstanding against
hi&. The &ain difference between a cash finance and overdraft lies in the fact that cash
finance is a bank finance used for long ter& b$ co&&ercial and industrial concern on
regular basis, while an overdraft is a te&.orar$ acco&&odation occasionall$ resorted to.
DE$OSIT DE$ARTMENT
It controls the following activitiesD
a) :I= o.ening.
b) Issuance of che6ue book.
a) =urrent aIc
b) Saving aIc
c) =he6ue cancellation
d) =ash
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Internship Report Silk Bank
Types o5 A""o+()s
;ollowing are the &ain t$.es of accounts
1) Individual :ccount
) @oint :ccount
7) :ccounts of S.ecial T$.es
Partnershi. account
@oint stock co&.an$ account
:ccounts of clubs, societies and associations
:gents account
Trust account
81ecutors and ad&inistrators accounts
Pak ru.ee non?resident accounts
;oreign currenc$ account
Appli"!)io( o5 Le!(e* Co("ep)s
:fter getting entered into .ractical life this is a co&&on co&.laint that .racticall$ things
are 6uite different fro& theoretical learning, but I did not face such big difference because
the conce.ts I got fro& the course of FCone$ and BankingG and FBusiness InstitutionsG
were so &uch close to the real world. In &anage&ent and &arketing st$le of the
e&.lo$ees there were so&ehow differences e1ist.
0hile doing internshi. I got lot of e1.erience and I got the chance to a..l$ &$
knowledge .racticall$, which hel.ed &e in getting interest in learning new conce.ts.
:fter doing this .ractice I feel that I can even co&.are &$ .ractical knowledge in further
studies.
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Internship Report Silk Bank
Fi(!("i!l A(!lysis
Li=+i*i)y R!)ios1
R!)ios %??& %??@ %??A %??B
C+e()
R
!
)i
o ?7@C@ ?7DC?
?7C?E ?7CD?
C!s#
R!)io ?7&DD ?7A?& ?7&C% ?7&B&
Ne) W7C '%E&CA@FD 'F?B@?CA?C 'EF?@E&FB 'BCFDE?F@
3+i"G
R!)io ?7@C@ ?7DC? ?7C?E ?7CD?
Des"ip)io(1
If we look at the li6uidit$ ratios we can see that the bank has i&.roved its li6uidit$
.osition fro& ,,7 to ,,-. There is a continuous i&.rove&ent in Silk bankAs li6uidit$
.osition in ,,7 the li6uidit$ .osition was alar&ing and it was even less than ,.".
:lthough in banks it is difficult to kee. these ratios u. because banks &ainl$ de.end
u.on short?ter& liabilities but still Silk bankAs i&.rove&ent is a..reciated.
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Internship Report Silk Bank
Le4e!.e R!)ios1
R!)ios %??& %??@ %??A %??B
De:) R!)io ?7E@F ?7E%% ?7CBE ?7CD?
De:)>E=+i
R!)io FB7??% FF7E@& B7B%? B7DA?
Times I()
E
!

R
!
)i
o %7?C? %7&@C
%7BAE %7E&?
De:) )o
T!(.i:le
N7W FB7??% FF7E@& B7B%? B7DA?
Des"ip)io(1
If we look at the 2ebt ratio and 2ebtI86uit$ ratio it is clearl$ understandable that the
bank has greater .ortion of debts in its ca.ital structure, but as co&.are to ,,7 in ,,-
the condition is better and the bank has graduall$ increased its e6uit$ .ortion as co&.are
to the debt. Still &anage&ent need to change its ca.ital structure and higher .ortion of
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Internship Report Silk Bank
e6uit$ &a$ result in better results, as it is .resent in ti&es interest earned ratio which is
showing that increase in the e6uit$ is .utting health$ effect in returns.
$o5i)!:ili)y R!)ios1
R!)ios %??& %??@ %??A %??B
R7O7Asse)s ?7EH F7%H F7B@H %7DH
R7O7E=+i FA7%H F@7DH FB7DH %?7CH
R7O7I(4 B7?H FD7DH FE7DH %&7%H
R7O7Op
Asse)s &7DH &7CH A7&H B7&H
Des"ip)io(1
:s we have seen in other ratios of leverage and li6uidit$ the co&.an$As financial .osition
is &uch better in later $ears as co&.are to the $ear ,,7, bank has got graduall$ and
continuous increase in its inco&e which is increasing its return on assets, e6uit$ and
invest&ent. Still return on assets is showing that bank is not utiliBing its assets .ro.erl$
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Internship Report Silk Bank
and its efficienc$ is to be increased. +eturn on e6uit$ is satisfactor$ and showing that
bank is having ver$ less .ortion of e6uit$.
SWOT ANALYSIS
S)e(.)#s1
Public confidence
Sound financial strength
4ighest .rofitabilit$
Jast o.erational network
+ole in econo&ic develo.&ent
Htilit$ bills collections
=or.orate branches
8vening banking
8fficient ho&e re&ittance
+ecognition of hard work of staff
S0I;T
Internet access 'www.silkbank.co&)
Pension > salaries .a$&ents
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Internship Report Silk Bank
(nline cit$ branch
We!G(esses1
<ack of good delegation
Inade6uate, .oorl$ .laced network technolog$
=o&.le1 CIS
2ee. rooted bureaucratic a..roval
<ack of long ter& > short ter& .lans
<ess share in i&.ort > e1.ort business
Poor resource utiliBation
Eeed better service .olic$
;re6uent change in senior &anage&ent
Oppo)+(i)ies1
Eew st$le &anage&ent
Introduction of new .roducts and services
Introduction of new technolog$ > electronic banking
=a.ital &anage&ent > e6uit$ financing
Secondar$ &arket o.erations
Eew de.osit sche&e
T#e!)s1
8stablish&ent of new .rivate financial institutions > e1.ansion
%ovt. s.onsored sche&es
Political .ressure
+educing branch network

Internship Report Silk Bank

Eew .roducts for& .rivate Pakistan 8stablish&ent of new .rivate financial
institutions > e1.ansion
Eew .roducts for& .rivate Pakistani > foreign banks
Eon?banking institutions
Inabilit$ to change
Inabilit$ to change
Stakeholders interests
$EST ANALYSIS
$oli)i"!l1
PrivatiBation .olic$ and deregulation.
I&.act of subsidiBed credit affecting and SilkbankAs.
8&.lo$&ent .ractices, Hnions, :ssociations.
Political Interference and harass&ent.
Incidents of high ta1ation on banking industr$.
E"o(omi"!l1
=onstraints in &obiliBation of .ublic savings because of inflation.
Staff cost.
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Internship Report Silk Bank
(.erating cost.
Bad debts
So"i!l I C+l)+!l1
Inade6uate hu&an resources.
=ultural strain to savings.
2efaulterAs lobb$.
2eclining education and work ethics.
Inade6uate accountabilit$.
:de6uate e&.ower&ent.
Te"#(olo.i"!l1
Inade6uate co&&unication infrastructure.
Inade6uate co&.uter facilities.
Inade6uate IT training.
S+..es)io(s !(* Re"omme(*!)io(s
Based on the S0(T and P8ST anal$sis of the Silkbank, it is observed that the Bank like
the other .ublic sector industries has not been showing u. to &ark .erfor&ance. There is
a long list of weaknesses that is given on the .revious .age. Cost of the& are going along
since long ti&e and that all efforts &ade to re&ove the& have not succeeded. (n the
basis of S0(T anal$sis of the Bank the following suggestions and reco&&endations are
given.
Bank should tr$ to get rid of the .olitical influence to be able to co&.ete in the
industr$ with .rudent and strong .olicies.
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Internship Report Silk Bank
The undue reliance on the .ublic sector be &ini&iBed and ventures of .rivate sectors
should be taken as well.
+edefining of rules, regulations and .olicies should be &ade i&.le&ented at all costs.
8fforts of great i&.ortance to be &ade for the over the counter services of general
banking &aking it &ore si&.le and faster to get a better res.onse of the custo&ers.
The behavior of the e&.lo$ee, es.eciall$ on the counter has to be strictl$ &onitored
and checked.
The still e1isted bureaucratic a..roval s$ste& has to be de&olished.
:ll advances should be &ade b$ getting the &a1i&u& securit$ and should focus on
.roductive work.
Better and co&.rehensive long?ter& and short?ter& .lanning should be &ade to
forecast the future needs.
There is a .ossibilit$ of establishing a task force to ascertain the effectiveness of the
.olicies being i&.le&ented.
The Bank should develo. a co&.rehensive recruit&ent .olic$ to &ake onl$ the
co&.etent ones to be on the 3ob.
There is a still a vast .ool of inco&.etent e&.lo$ees that has to right siBed.
There is a lack of .ro&otional ele&ent in the .lanning and budgetar$ decisions of the
Bank that has to think seriousl$.
:ll branches of the Bank should be co&.uteriBed for increasing the effectiveness and
efficienc$ of its e&.lo$ees.
8fforts should be continued to kee. the .owers of e&.lo$ees union to the &ini&u&,
like the current situation.
Pro&otions &ust not be dela$ed and should be &ade on ti&e to further increase the
co&&it&ent and efficienc$ of the e&.lo$ees.
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Internship Report Silk Bank
These and &an$ other that can &ake a good set of reco&&endations, which have to be
&ade .ossible to esca.e fro& the threats and weaknesses and the risks in environ&ent
that surrounds the Bank. The &anage&ent do considers the .olic$ &atter that is not
hel.ing the Bank, but is still in .ractice due the absence of .rudentiall$ regulated s$ste&
to .rotect the& and the Bank.
8fforts have been &ade with serious concern to give Silkbank a status that it has to
&aintain b$ having .ractices ofD
+ight siBing of the e&.lo$ees.
B$ closing un.rofitable branches.
B$ introducing a &erit based selection criteria.
Pro&otions &ade conditional with 6ualifications.
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Internship Report Silk Bank
Co("l+sio(
The econo&$ of the countr$ is boo&ing and with the invest&ent favorable .olicies and
their s&ooth i&.le&entation, the role of banks in toda$As econo&$ have beco&e an
i&.ortant one.
The banking industr$ is also rea.ing the fruits of this econo&ic boo& b$ growing ra.idl$
over the .ast few $ears. There are a nu&ber of &ergers ha..ening in the econo&$ with
foreign invest&ents co&ing into the banking sector.
It has been onl$ one $ear since the establish&ent of Silkbank, and since its establish&ent
it has ai&ed to beco&e the leading bank of Pakistan b$ that .rovides outstanding services
to its custo&ers.
The bank has seen .heno&enal growth in the .ast $ear b$ o.ening &ore branches in the
countr$, increasing the de.osit base, while also increasing the assets and .rofits of the
bank.
The services that Silkbank .rovides have a great &arket .enetration not onl$ because of
their features but also the .rofit and &arku. rates that the$ charge. :lso the .roducts that
Silkbank .rovides cater to sector of the econo&$.
The to. &anage&ent of the bank is alwa$s develo.ing strategies that co.e with
une1.ected challenges to deliver .roducts and services &ore efficientl$
;urther&ore, as the bank is growing, the nu&ber of e&.lo$ees at Silkbank are increasing,
which shows that Silkbank is being considered as an e&.lo$er, that .rovides its
e&.lo$ees with a challenging environ&ent to work in, where the$ can harness their full
.otential and shows confidence as an e&.lo$er b$ the e&.lo$ees of the bank.
<astl$ to beco&e the leading bank of Pakistan, Silkbank has to bench&ark its services to
its &a3or co&.etitors in the industr$ or the &arket leader in the industr$ and .rovide a
continuous &ean of i&.rove&ent in its e1isting .roducts and services, while introducing
new ones to the industr$.
/