Final Silk Bank Report

INTERNSHIP REPORT ON
SILK BANK LIMITED
By
Muhammad Bilal Sarwar
M.com (Finance)
11042054-098 (W)
Session: 2011-2013
11042054-098@uog.edu.pk
UNIVERSITY OF GUJRAT
JULY, 2013
MUHAMMAD BILAL SARWAR

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FACULTY OF MANAGEMENT AND ADMINISTRATIVE SCIENCES

UNIVERSITY OF GUJRAT, CITY-CAMPUS
INTERNSHIP REPORT ON
SILK BANK LIMITED
Supervised By:
Signature
__________________________________________
Name
__________________________________________
Designation
__________________________________________
Chairman:
Name
___________________________________________
Signature
___________________________________________

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In The Name of
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the Most Beneficent and Most Merciful

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I would like to dedicate all my efforts on this report to my loving parents,

teachers and their parents and all those economists & Bankers who are sincerely
working for our beloved country Pakistan.

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Acknowledgement
All praise to Allah, the most merciful, beneficent, source of all Knowledge
and Wisdom. He is the only God, who helps us in every field of life. All respect
goes to my Holy Prophet Mohammad (S.A.W.W), who is forever guidance and
knowledge for all human beings.
I am very grateful to my ALLAH almighty who blessed me mind to think
and to complete my tasks, any how the words are bound, knowledge is limited and
time is short to express his dignity and blessings upon us.
I am proud to say that I am very grateful to my family whose kind prayers
and Cooperation helped me at every step of my work. Special thanks to my parents
for their cooperation for the sake of my knowledge.
I am very much thankful to the cooperation of lot of people in Silk bank of
pakistan (70 paris road Sialkot) like Mr.Tahir Jamil Qureshi (branch manager), Mr.
Abrar Ahmad (operational Manager) and Mr. Asghar Ali (relationship manager). I
might not be able to complete my internship report without their cooperation and
their kind behavior. I am also very much thankful to my all colleagues who always
help me and encourage at very critical moments.

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Executive Summary
Silk bank is the Public sector financial organization. The Silk bank was established
on1949, to serve as a representative to the SBP. Silk bank head office is in Karachi. It has 85
regional branches with 2750 employees and 18 overseas branches. Silk bank is a 52% share
owned by the Government of Pakistan (GOP). This report is based on internship in Silk bank
branch name. It is a well-known and famous bank of Pakistan. Silk bank maintains first position
in banking sector in Pakistan. This report is based on the actions, which are performed in this
bank. This report contains Banking services, competitive analysis, SWOT analysis and PEST
analysis of Silk bank. There are also declared the activities which I performed during my
internship in the branch. In this report I also talk about the industry analysis of banking system in
Pakistan. During the internship I was experiential the jobs duty of the employees and at I
discover a bundle of troubles at the management stage.
To interrupt my skills and educational knowledge of Professional Banking I done my
Internship in Silk Bank, 70 Paris road, Sialkot to know how I will work in financial institutions
and among various types of people have different attitude.
During my internship I worked in Operations, accounting, clearance, Remittances, cash
dealing and Credit Department. I successfully completed all the task/duties that were assigned to
me efficiently and effectively and I done my work with honestly.
I learned about different functions performed by Remittances, Clearing and Customer
Service Office department Letter Of Credit opening. I also learned banks correspondence with
their customers and within branches. I learned about documentation requirements and record
keeping for different activities and processes, especially the documentation requirement for
different kinds of financing facilities.

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Table of Contents
Serial Particulars
No
Chapter # 1: Introduction to Report
Definition of Internship
1.1.
Introduction
1.2.
Purpose of the Internship
1.3
Objectives of the Internship
1.4
Benefit of the Internship
1.5
Scope of study
1.6
Limitation for study
1.7
Methodology for study
1.8
Chapter # 2: Overview of the Organization
Definitions of Bank
2.1
History of Silk Bank
2.2
Vision
Mission
Value Core Value
Nature of the Organization
2.3
Silk Bank Volume of Capital and Reserve:
2.4
Ratio Analysis of Silk Bank:
2.5
Short Term Liquidity Ratio
2.5.1
Long Term Liquidity ratio
2.5.3
Profitability Ratio
2.5.3
Investor Ratio
2.5.4
products or Services of the Silk Bank
2.6
PEST Analysis
2.7
Political:
Economical:
Social & Cultural:
Technological:
Silk bank's performance at a peek during 2012 and future
2.8
strategy
Chapter # 3: Organizational Structure

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Board of directors
3.1
Senior Management of Silk Bank
3.2
Organization structure of Silk Bank
3.3
Hierarchy of Silk Bank Sialkot Branch
3.4
Number of Branches and employee
3.5
Main Offices
3.6
Introduction of All Department
3.7
Account Opening Department:
3.7.1
Credit Department:
3.7.2
Foreign Exchange:
3.7.3
Remittance Department:
3.7.4
Clearing Department:
3.7.5
Cash Department:
3.7.6
Clearance Department:
3.7.7
Advances Department:
3.7.8
Deposit Department:
3.7.9
Chapter #4: What I did in Silk Bank
Chapter # 5: Conclusion
SWOT Analysis
5.1
Strength
Weakness
Opportunities
Threat
Chapter#6: Suggestions and Recommendations
References

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Chapter # 1: Introduction to Report

1.1.
DEFINITION OF INTERNSHIP
An internship is a type of work experience for fresh job-seekers. Internships involve

working in your expected career field, either during a semester or over the summer. Besides
gaining valuable experience, you get exposed to the business environment and gain valuable
references and network contacts. Career counselors, employers, and others have long touted the
importance for college students to work one or more internships during their college years.
1.2.
INTRODUCTION
Students of M.Com studying courses leading to Master degree in Commerce are required
to undergo an internship programmed of six week duration. This is an essential academic
requirement. The internship is followed by comprehensive report writing, required to submit
faculty of management and administrative science department of University Of Gujrat. This
report is properly evaluated on the basis of its description and analytical capabilities by internal
and external examiners. I did my internship in Silk Bank Limited 70 Paris Road Sialkot.
1.3.
PURPOSE OF THE INTERNSHIP
The main purpose of Internship is to do an experiment that how the theoretical

knowledge matches in the real world of practical knowledge and takes enough data which enable
me to make an internship report & try it to present in viva voce examination. &
To work practically in an organization.

It enables me to walk around my technical and interpersonal skills.
It is the requirement of UNIVERSITY OF GUJRAT.
It will increase my experience in different fields related to banking sector.
Market gives preference to experienced person.
Internship gives practicality to fresh student.
To develop interpersonal communication.
1.4.
OBJECTIVES OF THE INTERNSHIP
Discuss thorough study of Silk Bank limited.

To understand the various operations and to equip with practical knowledge of the Silk
Bank limited.

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1.5.
BENEFIT OF THE INTERNSHIP
The study done will benefit the finance students in particular and banking students in
general because the financial analysis section of this report comprehensively encompasses all
respects of financial analysis.
1.6.
SCOPE OF STUDY
The study is confined to banking operations. An attempt, along with all its limitations, to
collect financial data and general statistics of the bank has been made. Keeping in view the
purpose of the study, which is to make an acquaintance with practical doings in the bank, this
seems a comprehensive effort.
1.7.
LIMITATION FOR STUDY
It is to admit that the study attempts only those aspects, which are closely relevant to the
purpose of the study. The facts and figures, which otherwise might be equally important, but not
having a direct bearing on the conclusions arrived at this study, have been ignored.
The most important limitation from which the study suffers is the non-availability of information
in a manner required for analysis and the secrecy of the bank. Another important limitation of the
study is time and space constraint.
1.8.
METHODOLOGY FOR STUDY
Both primary and secondary data were used in compilation of the report. Methodological
tools used were:
i.
Primary Data:
Personal Observations.
Discussion with Bank Personnel.
ii.
Secondary Data:
Brochures/ Manuals of the bank.
Annual Report
Bank internship reports on Silk Bank available at different sources.
Journals, newspapers and books.
Internet.

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Chapter # 2: Overview of the Organization

2.1
DEFINITIONS OF BANK
"A financial institution, which deals with money and credit. It accepts Deposits from
individuals, firms and companies at a lower rate of Interest and gives at higher rate of interest to
those who need them.
J.W Gilbert in his principles and practice banking defines a banker in these words:
A banker is dealer in capital or more properly, a dealer in money. He is intermediate
party between the borrower and the lender. He borrows of one and lends to another.
2.2
History of Silk Bank
Silk bank was started its services as a bank on 1949 as a partner of Govt. of Pakistan. Silk
bank was established to assist the state bank of Pakistan in technology oriented products and
services through large network in the country. The Silk Bank has effective lending policies to
enhance the growth of the country economy through serving as a public bank. Silk Bank was a
public sector bank as an agent of State Bank of Pakistan. 52% shares of silk Bank were acquired
by Govt. of Pakistan so due to this it is called a public sector bank. On the id of 2009 the Silk
Bank has held Rs. 820 total assets. The Silk Bank has 1249 regional & 18 international branches
network. Silk bank derive its name from inspiration of natural unique thing called Silk. The
Silk Bank also takes inspiration from silk route which had been a single and better way of trade
between Asia and other countries of the world.
The Saudi Pak Industrial and agriculture investment (PVT) ltd company hire the silk
bank on September 15, 2001. 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). The numerous investment companies signed a document to purchase the
shares of Saudi Pak investment group. After the Saudi Pak Bank buying shares of investment
corporations, it should mainly focus on the small & medium enterprise and consumer financing
struggle to make an effective profitability.
On March 31, 2008, a Consortium comprising of IFC, Bank Muscat, Nomura
International and Sinthos Capital- which was led by senior bankers Shaukat Tarin and Sadeq
Sayeed - acquired an 86.55% stake in Saudi Pak Commercial Bank for around USD 213 million
or USD 0.47 per share (PKR 29.3 equivalent per share). Saudi Pak was rebranded as Silk bank
Limited on June 1, 2009. Under the new leadership the bank will continue to focus on SME &
Consumer financing resulting in efforts of increased profitability.
Name Change to Silk Bank

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On june, 2009 the State bank of Pakistan published a notification under the clause of the
SBP Act 1956, that the Saudi Pak Bank changed its name from Saudi Pak commercial Bank
limited to Silk Bank limited as affected on that year.
On Decenber 2009, The Saudi Pak Bank issue an additional share price 7.5 Rs. To get a
capital of Rs 7 billion to meet the capital requirement of the State Bank of Pakistan. The Saudi
Pak bank leadership focus on SME & consumer finance in to generate the revenue and for the
growth of the economy in the country.
Vision Benchmark of Excellence in premier banking.
To be the leader in premier banking trusted by customers for accessibility,

service and innovation; be an employer of choice creating value for all stakeholders.
It is our commitment to be a responsible corporate citizen, to support charitable causes

and to give back to the communities where our staff members live and work.

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Silk bank prides itself in being a conscientious and responsible corporate citizen with a
commitment to the development of Pakistan. At Silk bank our employees are encouraged to give
back to society and we have made concerted efforts towards the development of healthcare,
education and constructive, character building sports activities in the underdeveloped segments
of our country.
Customer Focus
At Silk bank the customer remains at the core of all activities
Service Quality is our key differentiator.
Integrity
At Silk bank we are honest and upfront maintaining the highest levels of personal and
corporate integrity.
Teamwork
Teamwork is our key strength our success is in unity.
Creativity
Out-of-the-box thinking is the enabling factor for us to be recognized as an innovative
organization.
Meritocracy
Merit remains our key primary criteria for rewarding performance.
Humility
Humility remains at the core of all our relationships.
2.3
NATURE OF THE ORGANIZATION
In starting Silk bank was doing their working of banking services for the Govt. of the
Pakistan. As a partner of State Bank of Pakistan. It mainly focuses on starting SME financing.
The Silk bank after establishment receipt their customers deposit on large network of branched
operated in the country in an efficient way of banking services. The Silk Bank also provides the
facility of providing loan to individual, trade, industry and for agriculture purposes. The silk
bank provides computer base services to its customers. The Bank provides effective scheme to
its depositors and borrowers to easily deposit money and obtain loan from bank respectively. The
bank receive amount as deposit from customers give to that amount to borrower in an reasonable
condition to small, medium and industrial purposes. The Silk Bank also collects gas and
electricity bills from the customers. It paid monthly bills from the customers account to the
relative department of the Govt. The Silk bank provides the facility of foreign exchange to
receive the foreign currency directly and deposit in the customers account in the objective of
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providing efficient and customized facility to customers of running business in the export nature.
The Silk bank opens letter of credit for the objective of importing goods from foreign countries.
For the regular and worth business individual and companies the Silk bank before receiving
amount from foreign customers the bank provides or deposits a proportion to the customers
account. The Silk bank provides all those facilities in all branches operating in the country in
commitment and customized services of banking.
2.4
SILK BANK VOLUME OF CAPITAL AND RESERVE:
YEAR
2012
RS. IN
MILLION
2011 RS.
IN
MILLION
2010
RS. IN
MILLION
2009
RS. IN
MILLION
2008
RS. IN
MILLION
SHARE CAPITAL
13431
13,431
13,431
9,003
9,003
RESERVE
163
139
---
225
219
DEPOSITS AND OTHER
69050
64,072
55,706
49,610
41,057
ACCOUNTS
2.5
RATIO ANALYSIS OF SILK BANK:
2.5.1 SHORT TERM LIQUIDITY RATIO

Ratios\ Years
2012 million
2011 million
Current ratio
Acid Test Ratio
Cash Ratio
0.86
0.86
0.49
0.89
0.89
0.054
Interpretation:
Silk Bank has same current ratio as compared to previous years situation. The acid test
ratio has decreased from 0.89 to 0.86 which is unfavorable for the company. Company has to
required to improve the acid test ratio to meet the short term cash need in the Silk bank. Cash
ratio increase from 0.05 to 0.49 in the current year which is also favorable for the company.

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2.5.2 LONG TERM LIQUIDITY RATIO

Ratios\ Years
Time interest earned Ratio
Debt ratio
Debt to equity ratio
2012 time
0.13
0.94
3.13
2011 time
0.33
0.94
3.18
Interpretation:
Time interest earn for the company has decrease from .33 to .13 time per year which means
company take much time to earn profit than paying interest on the borrowing funds. Debt ratio
has same as was previous year. Debt to equity ratio has to improve in the current year from 3.18
to 3.13 which means company take lea loan as compared to equity finance.
2.5.3 PROFIABILITY RATIO
Ratios\ Years
Return on average equity
Return on average assets
2012
(6.26 %)
(0.38 %)
2011
13.27 %
0.85 %
Interpretation:
The company has negative return in the 2012 year because company spends much of the amount
on the improvement of customers services providing. The return on equity and assets has
negative figure in the current year which is unfavorable for the company.
2.5.4 INVESTOR RATIO
Ratios\ Years
Degree of financial ratio
Earnings per common share
2012 %
6.70
Rs. (0.13)
2011 %
3.93
0.26
Interpretation:
The company earning in the current year is negative means company is in loss in 2012 year as
compared to 2011 year. The earnings per share has negative in the current years and degree of
financial ratio has increase in the current year which favors the company to earn more than the
interest paying on the borrowed funds.
2.6
PRODUCTS OR SERVICES OF THE SILK BANK
The Silk bank provides the following service and products to the customers:

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DEMAND DRAFT (D.D)

D.D is an instrument issued by branch of the bank drawn on other branch of the same
bank.
DD ISSUANCE PROCEDURE :
Purchaser is asked to fill in an application form duly singed by applicant. Three things
should be maintained in the form.
Amount of D.D
Place of payment
Name of the Payee
Commission is charged on D.D as bank income, then applicant is asked to deposit the cash
specified on the application form. After depositing cash the remittances incharge prepare a D.D.
Bank also provides this facility to general public who dont have account in Silk Bank. They will
have to submit a N.I.C copy along with D.D application form.
Service charges rate
Upto Rs. 100,000
Over Rs. 100,000
Rs.
Rs. 200
Rs. 300
MAIL T RANSFER (MT):

The transfer of money from one branch to another branch of the same bank through mail
or courier service is called mail transfer. If the money is not required immediately, the
remittances can also be made by MT. Here the selling officer of the bank sends instructions in
writing by mail to the paying bank for the payment of a specified amount of money. The
payment under transfer is made by debiting the buyers account at the sending office and
crediting it the recipients account at the paying bank.
Postage on MT
Rs. 50
TELEGRAPHIC TRANSFER (TT):

The transfer of funds by means of fax or telegram is called telegraph transfer. It is fast
way to transfer of funds from one branch to another of same bank. The amount will credit to the
beneficiary account within 24 hours. The customer fills Online Fund Transfer form. Transfer is
quite simple. First the application form is filled then concerning officer shall fill the telegraphic
transfer form. Then it is sent to the required bank which on receiving the mail immediately
makes the payment to the customer and then the voucher is sent to that bank by ordinary mail.
Telecommunication charges on TT
Rs. 250

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Fax charges on TT
Rs. 100
PAY ORDER:
Silk bank provides another reason to shift your money using our amenities. Silk bank pay
orders are a safe and easy way to shift your money from one place to another. And, as usual, Silk
bank charges for this service are exceptionally competitive.
Pay order against debit to account
Rs. 100
Pay order against debit of cash

I. Upto Rs. 100000
II. Over Rs. 100000
Rs.300
Rs.750
SWIFT SYSTEM:
The SWIFT system (Society for Worldwide Interbank Financial Telecommunication) has
been introduce for quick services in the region of home remittances. The system has built-in
features of computerized test keys, which eliminates the instruction manual application of tests
that often basis delay in the payment of home remittances. Using the Silk bank network of
branches, you can securely and quickly transfer money for our business and personal needs.
LETTER OF CREDIT:
Silk bank is devoted to offering its business customers the widest series of options in the
area of money transfer. If you are a commercial enterprise then our Letter of Credit service is
helped in transfer of money from one place to another specified any place. The silk bank open
letter of credit for its client to import goods from foreign country. In this way the client or
customers of Silk bank deposit the entire amount of payment to foreign country in the Silk Bank
account.
TRAVELERS CHEQUE:
Travelers cheques are transferable instruments, and there is no restraint on the period of
validity of the cheques. Rupee travelers cheque is available at all 85 branches of Silk bank this
can be encashed in all 85 branches of Silk bank. There is no boundary on purchase of this
cheque. It is one of the safest methods for carrying money.
FOREIGN REMITTANCE:
To facilitate its customers in the area of domicile Remittances, Silk bank has taken a number
of procedures to:

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raise home remittances in the course of the banking system

Gather the SBP directives/instructions for timely and rapid delivery of remittances to the
beneficiaries.
Outward Foreign remittance
0.50 % charges
Inward Foreign remittance

No charges to receive money from
abroad to credit the customers
account
Actual Amount to customers account
VISA DEBIT CARD:

With Silk Bank Debit Card get 24-hours contact to cash anytime and anywhere in the
region of the world. Silk Bank Debit Card offers international getting and enables to draw cash,
through from account anywhere, any time. In case of stolen or misplaced cards, you can defend
against fake transaction made on your card after you information the misplaced.
MOBILE BANKING:
Silk-Direct Internet Banking is available through GPRS facilitate mobile phones.
Facilities of Mobile Banking are:
Balance Inquiry
Mini Statement
Check Book Request
Account Statement Request
E-STATEMENT:
E-Statement amenities are:
No worry about your transaction view
easy Registration procedure
Customers can apply for e-statement on a daily, monthly, quarterly, half-yearly and
annually regularity.
SMS ALERT:
Silk Bank Sms alert suggest to customers the ability to keep on informed around 24 over
7 anytime. Customers registered for SMS Alert, they will get alert on transactions they choose,
from the following set of option:
SMS charges:

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Less than 50000
Rs. 85
50000 to 499,999
500,000 to onward
Rs. 50
Free
SILK BANK-DIRECT:
With Silk Bank Internet banking service we can contact and supervise our accounts wherever
and anytime. With Silk Bank-Direct customers can enjoy following wonderful amenities:
Balance Inquiry
Transaction Details
Low Balance Alerts
Accounts Statements Requests
Fund Transfers
Pay Order/Demand Draft Requests
Cheque Book Requests
UTILITY BILLS:
All branches of the Bank gather utility bills of electricity, gas and telephones from customers.
For ease of the customers, Utility Bills are collected by the branches during banking hours and
also in the evening banking on all working days. Bills can be compensated through cash or
cheques. Consumers may fall bills with crossed checks into a drop box existing at the branches
under Checks Drop-in method.
DEPOSITS ACCOUNTS
Types of Accounts
Following are the main types of accounts
1. Individual Account.
2. Joint Account.
3. Accounts of Special Types:
Partnership account
Joint stock company account
Accounts of clubs, societies and associations
Agents account
Trust account
Executors and administrators accounts
Pak rupee non-resident accounts
Foreign currency account
CURRENT ACCOUNTS:

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a) ONLINE EXPRESS
With Silk Bank Online Express you can benefit from complete online banking benefits under
the one account in the silk bank. Your online Express account opens the way of the world for
you with the command of the Silk Bank Visa Debit Card facility.
b) BASIC BANKING ACCOUNT
Opening an account was in no way so easy. Now open an account with Silk Bank with no
much payment 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 branches are free. In case of withdrawal from BBA through the ATM machine of other
banks. Rs. 15 charges will deduct in agreement with Schedule of Silk bank charges. Till the 6
continuous month the BBA have zero (0) balance in account the basic banking account will be
close.
c) AL-IN-ONE ACCOUNT
Silk bank All-in-one Account provides the vital security and safety, wonderful banking
conveniences and much more convenienceall extremely free.
Silk bank offers the auto-insurance rate as low as 2.5% in all in one account.
Free yourself from the horror of being robbed of your cash. Silk bank All-in-one
Account provides you free snatching and difficulty cover of up to Rs.25, 000 per month for
ATM.
Free yourself from the in securing of having your mobile snatched. Silk bank All-inone Account provides you free cover up of Rs.5, 000 for mobile snatching. This facility can be
avail in once a year.
Free yourself from the tension of losing your very important documents, such as
CNIC, Credit Card, Driving License and Passport. Silk bank All-in-one Account provides you
free cover up of Rs. 5,000 for stealing or loss of your very important documents. This coverage
can be utilize once a year and is designed to compensate you for the cost of re-insurance of these
documents.
Feel protect at home with silk bank All-one-one Account. Your account provides you
free cover for robbery of your house valuable up to Rs.100, 000 in a year.
Silk bank All-in-one Accounts offer you free world-wide cover of up to Rs.200, 000 for
unintentional death and unending disability.
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Other benefits under all in one account are:
Free Pay Oder & Demand Drafts

Free Intercity Transactions
Free VISA Debit Card
Free withdrawals from all ATMs
Free Internet Banking
Free SMS Alerts
SAVING ACCOUNTS:
a) SUPER SAVER:
The Silk bank provides the super saving account following facilities to the customers in the
easiest way of interaction:
The minimum rate is 6% and maximum rate is 7% on that account offered by the Silk
bank.
Highest Returns on deposit
Offer VISA Debit Card
More the deposit in this account the higher the return to the customers
Profit designed on the daily basis on this account
Facilitated to both individual as well as companies
Profit is Payable monthly
b) PROFIT AND LOSS SHARING ACCOUNT:
All the way through Silk Bank Saving PLS account, can gain now the advantage of saving of
a Saving Account with the ease of a current Account
The Silk bank provide to customer the profit sharing rate 6% on that account
Profit paid to customers twice in a year
VISA Debit Card
Profit calculated on smallest amount balance every month
lowest amount balance required is Rs. 50,000
c) FOREIGN CURRENCY ACCOUNT
Invest in Silk bank Foreign Currency Account to make remarkable revenue twice a year. The
customers can open foreign currency account in Dollar currency can open in either current
foreign account or saving foreign account. In current foreign account customer required to
maintain at least 20,000 US dollar and in foreign saving account customer require to hold at least
50,00 US Dollar amount in respective account.
Profit calculated on smallest amount balance every month

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Profit paid to customers twice in a year

TERM DEPOSITS:
a) MUNAFA HI MUNAFA
With Silk bank Munafa Hi Munafa Term Deposit Account can make now the highest revenue
on a monthly basis Munafa Hi Munafa Term Deposit Account can commence now with
minimum balance of only Rs. 100,000. The minimum rate is 6% and maximum rate is 7% on
that account offered by the Silk bank.
b) SILK BANK MAHANA MUNAFA
With Silk bank Munafa Hi Munafa Term Deposit Account can make now the highest revenue
on a monthly basis Munafa Hi Munafa Term Deposit Account. The minimum rate is 6% and
maximum rate is 8.50% on that account offered by the Silk bank.
c) SALANA MUNAFA
With Silk bank Munafa Hi Munafa Term Deposit Account can now make the highest profit
on the lowest investment and the following returns:
The minimum rate is 6% and maximum rate is 8.75% on that account offered by the Silk
bank
Overdraft facility of up to 90%
ATM/Debit Card with account
Online banking, E-Statement and Internet banking facilities
Pay Order/Demand Draft convenience with base account
d) 7 DAYS SPECIAL NOTICE DEPOSITS
Silk Bank Special Notice Account is also available for 7 and 29 days term deposit facility to
customers with a rate of 6%.
e) OTHER TERM DEPOSITS
With Silk bank Term Deposit Account can choose from a variety of tenures of 1 month,
3months, 6 months and 1 year, based on customers necessities. With a least amount deposit of
only Rs. 100,000, have the chance to make higher income on their deposits.
LOAN AND ADVANCES:

MPOWER

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Earning is pride, profit is good sense but cash is truth and good cash flow is the key to
achievement of any business. Silk Bank MPower suggests operation finance against customers
land, housing & commercial properties insuring a stable life line for customers business.
a) CONVENIENT
Land, residential and commercial properties good enough as security
b) AFFORDABLE
Mark up computation on day by day utilized amount only
c) ACCESSIBLE
Visa debit card acceptable internationally
obtainable in all major cities of Pakistan i-e Karachi, Lahore, Rawalpindi, Islamabad,
Gujranwala and Sialkot
Online banking facility in 85branches in Pakistan
d) FAST PROCESS
quick processing with easy and disturb free credentials
e) ELIGIBILITY
Resident of Pakistan
Self employed professional &businessmen in going concern over 3 to 5 year
Monthly income of 50,000
Age 25-60 years
Real estate security in form of land, residential &/or business properties
COMMERCIAL FINANCE:
Silk bank devoted group of professionals honestly understands the requirements of
professionals, agriculturists, large and small business and other segments of the country. They
are the customers most excellent source in making Silk banks products and services effort for
them.
AGRICULTURE FINANCE:
Silk bank provides Agricultural Finance to harden belief, loyalty and pride of farmers who
produce some of the most excellent agricultural products in the country for the benefit of their
own countrys people.
a) AGRICULTURAL FINANCE SERVICES:
I Feed the World plan, a new product, is introduced by Silk bank with the intend to
help farmers make best use of the per acre production with minimum of essential input. choose
farms will be complete role models for other farms and farmers to chase, thus helping farmers
beyond Pakistan to enlarge output.
b) AGRICULTURAL CREDIT:
The agricultural financing strategy of Silk bank is intended at three major objectives: Providing consistent infrastructure for agricultural customers

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assist farmers make use of funds efficiently to additional develop and attain better
production
Offer farmers an integrated system of credit with provisions of necessary inputs,
technical awareness, and administration of farming.
c) AGRICULTURAL CREDIT (MEDIUM TERM):
Silk Bank provides farmers with medium term loan in the objective of increase the wealth
and utilization of farms by farmers.
Production and development

Watercourse development
Wells
Farm power
Development loans for tea plantation
Fencing
INSURANCE PRODUCTS
a) ROSHAN MUSTAQBIL
b) SUNEHRA KAL
c) MEHFOOZ HER PAL
d) SILK HEALTH PLAN
a) ROSHAN MUSTAQBIL:
A child is the most valuable gift for any excellence education is the best award parents can
provide to their children. Silk bank Roshan Mustaqbil Bank guarantee is an education plan
absolutely designed to outfit your needs. The plan is underwritten by EFU Life Assurance Ltd.
Roshan Mustaqbil is a elastic, custom-made, complete financial package that assist customers to
plan their childrens future education necessities and guarantees a financially safe tomorrow even
in case of any accident.
b) SUNEHRA KAL
Silk Bank Sunehra Kal guarantee is a saving and investment plan completely planned to
provide all customers needs. The plan is underwritten by EFU Life Assurance Ltd. Sunehra Kal
is complete financial planning package that gives customers the twin benefit of safety along with
potentially higher profits over a long- term on their saving and investment. The most significant
benefit of Sunehra kal is its elasticity to outfit customers needs. Sunehra Kal is a perfect, usual
payment unit-linked plan, to all customers imaginings into reality.
c) MEHFOOZ HAR PAL:
Silk Bank Mehfooz Har Pal bank guarantee is an easy so far complete disaster and
hospitalization plan given that 24 hour worldwide treatment to the whole family. Mehfooz Har

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Pal guarantees their customers financial fit by paying out money on death. The plan is
underwritten by EFU Life insurance ltd.
d) SILK HEALTH PLAN:
Health is definitely the real assets. In fact, good health is a wealth that every individual value
the most .but unluckily sickness and infection are part and parcel of life and forever exist. With
the health concern costs, sickness may not only front to mental pain for the whole family but
could also badly affect the finance for a long time. The implications become even more cruel if
the sickness consequence in lengthened hospitalization. With a duty to help people survive
healthier, wealthier and more flourishing lives Silk bank offers Silk Health Plan, a full healthcare
package that provides financial safety in case of sickness or mishap that leads to hospitalization.
The plan is underwritten by EFU Health life insurance ltd.
2.7
PEST ANALYSIS:
POLITICAL:
Privatization policy and deregulation.

Impact of subsidized credit affecting and Silk banks.
Employment practices, Unions, Associations.
Political obstruction and harassment.
Incidents of high taxation on banking industry.
ECONOMICAL:
Constraints in mobilization of public savings because of inflation.

Staff cost.
Operating cost.
Bad debts
SOCIAL & CULTURAL:
Inadequate human resources.

Cultural strain to savings.

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Defaulters lobby.
Declining education and work ethics.
Inadequate accountability.
Adequate empowerment.
TECHNOLOGICAL:
Inadequate communication infrastructure.

Inadequate computer facilities.
2.8
SILK BANK'S PERFORMANCE AT A PEEK DURING 2012 AND FUTURE
STRATEGY
During the year 2012, the Bank improved income both on the asset and the liability side
of the business. The Bank also considerably simplified costs through synergies, re-engineering
processes, restricting investment to presented resources, and a additional intensity of expensive
term deposits by low cost current and saving accounts (CASA). The Bank also made strategic
investments in innovative businesses and productively launched a Credit Card and an Islamic
Banking business, during the year. As a result the Bank crossed an vital objective in the third
quarter, with the commercial launch of Silk bank's VISA Credit Card and the switch of seven
conventional branches into Emaan Islamic banking branches, which have established muscular
reply from the market. Whereas in 2011 the volume of Bank's profitability came from
recovery/reverse of provisions of approx. Rs. 2.60 billion, the equivalent figure in 2012
was Rs. 580 million, a difference of approx. Rs 2.0 billion. Further the decrease in discount rate
of 250 basis points over the past year and the raise in the minimum pay out rate on deposits from
5% to 6% by SBP, led to an industry wide reduction of margins which also affect the
productivity of the Bank. Also in 2012, the Bank invested in central part segments of its future
expansion platforms including credit cards, Islamic Banking and other consumer products
leading to an add to in administrative operating cost. As a result, though center operating income
was still higher by Rs 250 million and costs were reserved in organize through increases in
efficiency and cost cutting procedures, the Bank recorded a loss after tax of Rs. 345 million in
2012. As such the Bank is not in a position to announce dividend for the year. To achieve the
goals, a clear three year strategy (inclusive of tax projections) has been devised based on a new
investment introduction of Rs. 2.4 billion through a system to issue preference shares. This will
considerably allow focal point on further available expansion opportunities.

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Chapter # 3: Organizational Structure

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3.1
BOARD OF DIRECTORS
Name
Designation
Mr. Munnawar Hamid
Chairman
Mr. Shaukat Tarin
Advisor to the
Chairman
Mr. Humayun Bashir
Director
Mr. Javed Hamid
Director
Mr. Sadeq
Sayeed
Director
Mr. Azmat Tarin
President & CEO
Mr. Khawaja Arshad Ghafur
Director

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3.2
SENIOR MANAGEMENT OF SILK BANK
Name
Designation
Mr. Azmat Tarin
President & CEO
Mr. Aneeq Khawar
Chief Operating Officer
Mr. Goharulayn Afzal
Group Head Marketing & Strategic Planning
Mr. Jamil A. Khan
Group Head Compliance & Internal Control
Mr. Talha Saeed
Group Head Retail Banking
Mr. Kasim Feroze Khan
Group Head Special Asset Management
Mr. Aurangzeb Afridi
Group Head Human Resource & Service Quality
Ms. Shafaq Rahid
Head of Customer Satisfaction & Quality
Ms. Sumbul Munir
Head of Corporate& Investment Banking
Mr. Syed Jawaid Akhtar
Head of Audit
Mr. Mohammad Zahid Ahmed
Head of Finance (CFO)
Mr. Syed Liaquat Ali
CFO (Acting) & Company Secretary

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3.5
NUMBER OF BRANCHES AND EMPLOYEE
Years
2012
2011
2010
2009
2008
Number of Branches
85
85
85
82
65
Number of Employee
2750
2564
2179
1959
1721
3.6
MAIN OFFICES
Head Office / Registered Office:

Silkbank Limited.
Silkbank Building,
I.I. Chundrigar Road,
Karachi.
Website: www.silkbank.com.pk
Telephone No: +92 21-111-00-7455 Ext. 413 & 414
Fax No: 92-21-32460464 & 32462902
Email: companysecretary@silkbank.com.pk
Islamabad Main Branch:
93 Razia Sharif Plaza, Blue Area Islamabad.
Rawalpindi Main Branch:
Aslam Plaza, 60 main, Adam Jee Road Rawalpindi Cantt.
Lahore Main Branch:
Silk Bank House, 14 Egerton, Lahore.
Auditor Office:
Yousuf Adil Saleem and Co, (Deloitte Pakistan), Chartered Accountants.
Cavish Court, A 35
Block 7 & 8, KCHSU,
Shara-e-Faisal,

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Karachi 75350.
Phone No: +92-21-34546494-7
Fax No: +92-21-34541314
Website: www.deloitte.com
3.7
INTRODUCTION OF ALL DEPARTMENT
Following are the departments working in the Silk Bank, 70 Parid Road, Sialkot branch:
3.7.1 ACCOUNT OPENING DEPARTMENT:

To release an account the customers have to meet up the common banking manager with
an introducer (the person who is going to initiate the basic account opening information to
customers that person in the bank) and obtain an application form used for bank account
opening. Numerous color-coded application forms are existing for each type of account. Beside
with the form a card for sampling signature is also provided to customer. Manager has every
right not to acknowledge this contract if he is not pleased by the particulars provided by the
customer. In case the contract is satisfactory to both, now it is complete to open the account
officially.
Account Types are as follows:

Though in theory theyre many types of accounts but usually account operators can be classified
in one of the following categories, each have different credentials necessities:
1)
2)
3)
4)
Single
Joint
Partnership
Private Limited
3.7.2 CREDIT DEPARTMENT:

The earning of a commercial bank is mainly resulting from concern charges on loans and
discounts it. Now loans are known as advances or finances. The advances are completed through
the deposits that are reserved in the bank by the customers. The bank pays profit on the deposited
amount and receives mark up on the finance made of different amounts. Silk bank introduced the
mark up based advancing in Jan1, 1985 when the Islamization of the economy was persuade
under this system of advancing the bank is allowed to receive a constant sum of money on the
amount that is outstanding on the account of the customer.

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3.7.3 FOREIGN EXCHANGE:

To encourage stream of foreign exchange in the country, the Government of Pakistan
commence a new system of opening of bank accounts in foreign currency. These accounts were
allowed to receive profit percentage in form of the currency in which the account was reserved
(Dollar account shall be paid profit in dollars). This has increased the stream of foreign currency
particularly from the Pakistani foreign people, who used to send money to their families at
domicile. The State Bank of Pakistan was prearranged particular rights to manage and check the
act of the Authorized Dealers in foreign exchange accounts.
AUTHORIZED DEALER is a person or organizations, which can transaction with the foreign
exchange. The right is set by SBP to all those listed Banks who have sufficient skilled staff and
amenities. These scheduled banks are certain license to transaction in foreign currency dealing.
3.7.4 REMITTANCE DEPARTMENT:
Remittance department provides convenience to the customer of the bank. The main
purpose of this department is move of money.
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.
OBC (outward bill for collections).
IBC (inward bill for collections).
3.7.5 CLEARING DEPARTMENT:

There is no lawful compulsion on a banker to gather cheques drawn upon other banks for
a customer. Though it is task of approximately every current bank of the collection of cheques
and bills on behalf of the customer. Clearing department services are provided in sort to make
provision for the economic collection of the cheques, DD and additional negotiable instruments.
A great element of this work is passed on through the clearing house. After joining the bank in
internship I got the realistic experience by performing of all the above mentioned tasks or
functions of the Silk bnak. The system is not too easy to recognize simply but still a lot of
complexities have been resolved.

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3.7.6 CASH DEPARTMENT:

This is very important department because cash is the most liquid asset and most of the frauds
are made in this department, therefore extra care is taken in this department and nobody is
allowed to enter or leave the area freely. Mostly cash area is grilled and its door is under the
supervision of the head of that department. All the books are maintained in this department and
checked by an officer. The following books are maintained in the cash department.
Cash Balance Book.
Receiving Cashier Book.
Paying Cashier Book.
Token Book.
Cash which is received in counter is entered in the scroll book and receiving cashier book. At the
close of day, these are balanced with each other. If the cheques or any negotiable instrument is
presented by the customer for payment, it is entered in the token book and token is issued to the
customer. At the close of day, the token book & paying cashier book are balanced. Finally the
figure of receipt and payment of cash is entered in the cash balance book and drawn closing
balance of cash.
Cash department performs the following functions:
RECEIPT:
The cash out from the bank is recorded in the bank in a systematic manner. Cash department
performs this task. The deposits of all customers of the bank are controlled by means of ledger
accounts. Every customer has its own ledger account and has split ledger cards.
PAYMENTS:
The amount which is give by bank to customers or to make payment to other bank is also
recorded in the bank in a systematic way. It is a bankers main agreement to pay back money
received for their customers account usually by honoring their cheques.
THE FUNDAMENTALS OF CHEQUE:

There is no arranged form of words or drawing of a Cheque, but in sort to complete the
necessities the Cheque must have the subsequent:
It should be in writing
The absolute order
Drawn on particular banker only
Payment on order
Sum definite in money
Payable to a particular person
Drawer signs on the cheque

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PARTIES TO CHEQUE:
The usual Cheque is one in which there is a drawer, a drawee banker and a payee, or no
payee but bearer.
The Drawer
The Drawee
The Payee
3.7.7 CLEARANCE DEPARTMENT:

A clearinghouse is a relationship of commercial banks set up in given zone for the
intention of exchange and payment of credit claims. The function of clearinghouse is performed
by the central bank of a country by custom or by law. In Pakistan, the clearing system is operated
by the SBP. If SBP has no office at a place, then Silk bank, as a spokesperson of SBP perform as
a clearinghouse.
After the World War II, a fast development in banking institutions has taken place. The
use of cheques in making payments has also extensively enlarged. The collection as resolution of
shared obligations in the shape of cheques is now a big assignment for all the commercial bank.
When Cheque is drawn on one bank and the owner (payee) deposits the same in his account at
the bank of the drawer, the common obligation are matured by the internal bank supervision and
there arises no interbank debits from the utilize of cheques. The total assets and total liabilities of
the bank remain unaffected.
In practice, the person receiving a Cheque as hardly ever a depositor of the cheque at the
similar bank as the drawer. He deposits the cheque with his bank other than of payer for the
gathering of the amount. Now the bank in which the cheque has been deposited becomes a
creditor of the drawers bank. The depositor bank will give its amount of the cheque by
transferring it from cash funds if there are no offsetting transactions. The banks on which the
cheques are drawn become in liability to the bank in which the cheques are deposited. At the
similar time, the creditors banks obtain large amounts of cheques drawn on other banks provide
claims of sum by them.
The simple, secure and mainly well-organized way is to offset the mutual claims against
the other and accept only the net amount owned by them. This ability of net interbank
disbursement is provided by the clearing house. The spokes person of the local commercial
banks meets at a set time on all the business days of the week. The meeting is held in the office
of the bank that authoritatively performs the duties of clearing house.
The council of the commercial banks distributes the cheques payable at other local banks
and obtain the cheques drawn on their bank. The cheques are then sorted according to the bank
on which they are drawn. A outline sheet is organized which shows the names of the banks, the

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total number of cheques delivered and acknowledged by them. Totals are also completed of all
the cheques offered by or to each bank.
The dissimilarity between the total represents the amount to be paid by a particular bank
and the amount to be received by it. Each bank then receives the remaining amount due to it or
pays the remaining sum owed by it.
3.7.8 ADVANCES DEPARTMENT:

Advances department is one of mainly responsive and a vital department of the bank.The
main part of the profit is earned in the course of this department. The job of this department is to
create proposals about the loans. The Credit Management Division of Head Office honestly
control all the advances. As we recognized bank is a profit looking for institution. It attracts
excess balances from the customers at little rate of interest and makes advances at a upper rate of
interest to the individuals and business ventures. Credit extensions are the mainly vital action of
all monetary institutions, because it is the key source of earning. Though, at the same time, it is a
very uncertain task and the risk cannot be totally eliminated but could be hedge for the most part
with positive tools.
PRINCIPLES OF ADVANCES:
There are four philosophy, which should be properly experimental while advancing money to the
borrowers.
Safety
Liquidity
Dispersal
Remuneration
The distinction between the total represents the amount to be rewarded by a particular bank and
the amount to be received by it. Each bank then receives the net amount due to it or pays the net
amount owed by it.
FORMS OF LOANS:
In adding to purchase and discounting of bills, bankers in Pakistan normally credit in the
shape of cash finance, overdrafts and loans. Silk bank provides finance to different citizens in
different customs as the case order.
CASH FINANCE:
This is a very common shape of borrowing by commercial and industrial concerns and is
completed accessible either against guarantee or security of goods, manufacture or retail. In cash
credit a borrower is permitted to borrow money from the banker up to a definite limit, either at
once or as and when necessary. The borrower prefers this type of lending due to the gift of
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paying markup/services charges only on the amount he in fact utilizes. If the borrower does not
utilize the full edge, the banker has to be unable to find return on the un-utilized sum. In order to
balance this loss, the banker may offer for a appropriate section in the cash credit contract,
according to which the borrower has to pay markup/service charges on at smallest amount on
person or one quarter of the amount of cash credit limit permitted to him still when he does not
exploit that total.
OVERDRAFT/RUNNING FINANCE:
This is the most ordinary form of bank lending. When a borrower require short-term
adjustment his banker allows withdrawals on his account in surplus of the balance, which the
borrowing customer has in credit, and an overdraft thus occurs. This facilitation is normally
allowed against guarantee or securities. When it is against guarantee or securities it is called
Secured Overdraft and when the borrowing customer cannot offer any guarantee or security
apart from his personal guarantee, the facilitation is called a Clean Overdraft. The borrowing
customer is in an beneficial situation in an overdraft, because he has to reimburse service charges
merely on the balance outstanding against him. The chief difference between a cash finance and
overdraft lies in the detail that cash finance is a bank finance used for long term by commercial
and industrial concern on normal basis, while an overdraft is a short-term accommodation
infrequently provided to.
3.7.9 DEPOSIT DEPARTMENT:

It controls the following actions:
A/C opening.
Issuance of cheque book.
Current a/c
Saving a/c
Cheque termination
Cash
TYPES OF ACCOUNTS:
Following are the main types of accounts
a) INDIVIDUAL ACCOUNT
The single person can operate this account. The banker runs the account according to the
rules and regulation but if customer gives special instruction the bank will have to follow it.
b) JOINT ACCOUNT

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This type of account will require two or more than two persons to open an account. The
account will be operated by one account holder in case of (either of the survival). If the
instructions are not given, all the account holders will have to sign the check.
Account opening department offer three main types of A/C.
Current account
Profit and loss saving account
Fixed deposit account
c) 3) ACCOUNTS OF SPECIAL TYPES
Partnership account
Joint stock company account
Accounts of clubs, societies and associations
Agents account
Trust account
Executors and administrators accounts
Pak rupee non-resident accounts
Foreign currency account
Chapter #4: What I did in Silk Bank

After joining the bank for internship at first it was so hard for me to obtain the
consideration of the employees, everyone was awfully busy in their own activities, and nobody
was having time to provide accommodation me. This was a critical time for me to acquire the
consideration of Silk banks management and to make them recognize that their valuable
information is so much essential for the up gradation of my information and for the achievement
of the job which I was assigned by the organization. But very quickly I succeeded in making
affiliation with the top persuade people and with the help of these people I started permeated in
the system. This was my first step towards the achievement of my duty and with the passage of
time they realized that they could also exploit my efforts in a creative way to reduce their load.
They provided me their moment and information, which helped me to improve my
understanding, and they also shared their experiences with me, which I consider that it would be
supportive in my realistic life.
First two weeks I worked in accounting department.
ACCOUNT OPENING:
TYPES OF ACCOUNTS
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Individual Account
a) Single
b) Joint
Business Account
Sole Proprietorship Account
Joint Stock Company Account
a) Public
b) Private
Partnership Account
a) Registered
b) Unregistered
Societies Accounts
Association\ Club\ Trust Accounts
INDIVIDUAL ACCOUNT:
Individual accounts are opened in Silk Bank for creating saving habits in people. An
individual may a employee, student, illiterate, Insane, illiterate Parda Observing Lady, Blind
Person, joint etc. any type of customer may be if should be
Alive and physically present in the bank at the time of opening an account.
Sane
Minimum balance requirement.
Cheque should be accepted for account opening.
Insane and Minor person cannot open account.
STUDENT ACCOUNT
A student can open an account and operated by the student itself. Student has Student ID
Card issued by the college\university. Student should not be a minor otherwise it will be fall
under minor account. Student should provide true and fair information about the source of fund.
MINOR ACCOUNT
This is the account operated by the person of age less than 18 years. This account remains
active till the person is minor. When he reaches the age of maturity, his account will
automatically be terminated. After that he will have to open his new account by giving AOF with
all necessary documents and then his funds will be transferred from the ceased minor account to
the new account.

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Instructions
In case of account being operated in the name of a minor the word MINOR to be added
to the title of account. The minor must have the guardian.e.g Mr. Afzaal (Minor) Mr.
Bilal (Guardian)
The particulars of Guardian (if not one of the applicant of same account with the minor)
be provided as required under particulars of account in the account application form.
Copy of CNIC of the Guardian along with form B for minor to be provided.
ILLITERATE PERSON ACCOUNT

These are highly risky account because fraud can be take place with some concentration e.g.
person can deny that he received amount written on the Cheque. He\she can claim that Im
unfamiliar about the amount put on the Cheque by the banker and officer withdraws above
amount from said, however, to avoid and securing position ask from person at every counter that
he want to withdraw. Bankers used a undertaking stamp and signed from person that he
withdraw the particular amount.
Person must be physically present to operate any transactions by giving his thumb
impression in the presence of the banker.
No online facility provided to this account holders.
Illiterate person can not transfer their Cheque in favor of someone.
Two recent passport size photographs of CNIC are required.
Thumb impression on specimen signature card. In case of Female Right hand thumb
impression and in case of Male Left hand thumb impression is used.
BUSINESS ACCOUNT:
SOLE PROPRIETORSHIP ACCOUNT
In addition to documentary requirement for individuals, following documents are required:
Application to open an account on the official Letter Head of the sole proprietorship.
National Tax Number\ Sales Tax Registration Certificate (if available)
List of officials to operate the account and their specimen signatures.
PARTNERSHIP ACCOUNT
The relationship between the persons who have agreed to share profit/ loss of business carried on
by all or any of them acting for all.

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It is the type of business in which many persons jointly invest in business and share the profits
and losses in pre described proportionate. The documents required for that are the following:
Attested copy of Partnership Deed or Letter of Partnership (CF-13, in lieu of the
partnership deed, if not available) duly signed by all the partners of the firm.
Attested copy of Registration Certificate with Registrar of firm. In case of partnership is
unregistered, this fact is clearly mentioned on the Customer Relationship Form.
Partners power to instruct bank on financial matters & operation of bank accounts.
Authority letter in favor of person to operate the account.
JOINT STOCK COMPANY ACCOUNT

Certified copies of:
Resolution of Board of Director for opening of account specifying the person(s)
authorized to operate the company account.
Memorandum and Article of Association
Certificate of Incorporation
Certificate of Commencement of Business
Attested photocopies of CNIC of all the Directors.
List of Directors in Form-29 issued by the Registrar Joint Stock Company
TRUSTS
Manager should ensure compliance of contract between principle and agent.

Attested copy of Certificate of Registration.
CNIC of all the trustees.
Certificate of Instrument of Trust.
Resolution to authorize a person to operate the account
List of trustees.
CLUBS/SOCIETIES AND ASSOCIATIONS

These are non-trading/non-profit organizations and are formed for the promotion of culture,
education, recreation activities and charitable purpose etc.
Certified copies of:
Certificate of Registration (b) By Law\ Rules and Regulation.

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Regulation of the Governing Body\ Executive committee for opening of account

authorizing the person(s) to operate the account and attested copies of CNIC of the
authorized person(s).
An undertaking signed by authorized persons on the behalf of the institution mentioning
that when any change takes place in the persons authorized to operate to on the account
the Bank will be informed immediately.
AGENT ACCOUNT
If a person is doing business out of city and he nominates a certain person to operate his business
locally then that person is called an agent. The agent can be authorized by the principal to open
an account in his own name to deal and manage the matters of the principal. This account can be
opened by obtaining the Powers of Attorney from principal. Principal has the right to cease
this agent account whenever he realizes that the agent is not managing the matters fairly.
Following documents are required to open this account
Certified copy of Powers Of Attorney
CNIC of Agent
CLOSING OF AN ACCOUNT
There is no. of reasons of closing an account. Some are listed below:
If customer desires to close his account

In case of death of one account holder
Bankruptcy of the account holder
If an account contain nil balance or not up to the requirement of rules.
PROCESS OF OPENING AN ACCOUNT:

The first requirement while opening an account is to fill the account opening form. First
of all the customer will state the address of branch where he is going to open his account. Then
he will state the title of account in which he will state his name. Then he will have to select that
which type of account he is going to open whether he is going to open mention above.
Then he will state his account nature whether he is going to open the:
Saving, Current Account
Term Deposit
Foreign Currency Account

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ACCOUNT OPENING FORM INCLUDES SUCH CLAUSES

PERSONAL ACCOUNT (SINGLE\ JOINT)
Title of Account
Short Name
Current Mailing Address
District, City
Postal Code
Country
PERSONAL INFORMATION APPLICATION NO. 1
Name: (Mr.\ Mrs.\ Ms.) as per CNIC

Fathers\ Husbands Name
Mothers Maiden Name
Date of Birth
Marital Status
CNIC No: \ Passport No:
Place and Date of Issue: \ Expiry\ NTN:
Tel Res: \ Tel Office: \ Mobile\ Email:
Permanent Address:
Occupation (Govt. Service, Private Service, Self Employed, Student, Housewife,
Agriculture, Others)
Name and Address of Employer:
BUSINESS ACCOUNT
Title of Account
Company\ Business Name
Business Stamp
Short Name
Nature of Business (Import\ Export, Manufacturing, Agriculture, Other)
NTN, Registration Number
Office\ Mailing Address (Tehsil\ District, P.O Box, Postal Code, Country)
Head Office\ Registered Address (Tehsil\ District, P.O Box, Postal Code, Country)
Contact Detail (mobile, email)
Contact Person(s)

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SPECIMEN SIGNATURE CARD

The customer is required to fill one specimen signature cards. Specimen signature card
has four blocks. Customer will give his signatures two times on card. The card is then scanned
and one copy of card will be sent to the head office and the other is maintained with the branch.
Head office will take the specimen signature card in order to scan the signature of the customers
in the computer for further verification at time of withdrawal.
Specimen signature contains
Branch name
Date
Title of account
Branch code
Account number
Suffix number
Account to be operated by singly, jointly, other
NATURE OF ACCOUNT
Then he will state the nature of account, whether he is Resident or Non Resident.
NATURE OF ACCOUNTS
Basically there are two natures of accounts
Demand Deposit account/ Chequeing Account
Term/Fixed Deposit Account/ Non Chequeing Account
DEMAND DEPOSIT ACCOUNT:

Under it following accounts lie
Current Account
Basic Banking Account
PLS Saving Account
Foreign Currency Account
Business Account

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BASIC BANKING ACCOUNT

The Simple way to Start Banking
Its as simple as ABC to start banking with Silk Bank.
Look after your money the simple way, with Silk Bank Basic Banking Account.
Key Points
Open a Basic Banking Account with as little as Rs.1000/- only

No minimum balance maintenance requirement.
No monthly account maintenance charges.
Two free deposits per month (including cash and clearing).
Two free withdrawals per month (including cash and clearing).
Unlimited free withdrawal transactions through Silk Banks ATM.
Use your Silk Bank Smartcard to shop at thousands of merchant outlets across and within
Pakistan
CURRENT ACCOUNT
What are you waiting for? Race and be ahead. Discover the quick, easy, and convenient way to
manage and use your money with an Silk Bank Current Account
Key Points
Low minimum balance Rs. 10000 requirements
Unlimited cash deposit and withdrawal facility at hundreds of branches nationwide.
Use your Silk Bank Smartcard to shop at thousands of merchants across Pakistan.
ISSUANCE OF CHEQUE BOOK

Customer facilitation department issue cheque book to the customers
There are three categories of cheque books
25 Leaves
50 Leaves
100 Leaves
25 and 50 Leaves are computerized cheque books and issued by Head office. While 100leave
cheque book issued on spot.
Following are the charges deduct by the bank issuing of cheque book respectively

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FMAS
75
150
100
COLLECTION OF CHEQUES FOR CLEARING

Customer facilitation department also collects cheques from the customer for the purpose of
clearing and send to the clearing department
DEPOSIT VOUCHERS
Customer facilitation department provides cash deposit vouchers to the customer
For next one week I worked in clearing department.

Cheques clearings
Receive Cheques for clearing and record them into clearing register. The procedure was
Fill pay in slips for Cheques containing the date, A/C # title of account(in which Cheques
is to be deposited) cheque number, bank name in which it is drawn, and the amount
Impose crossing stamp of branch on cheque and on the slip and give to the customers
customers copy after signing of operations manager and ask the customer his Phone
number. And attach voucher to the Cheques
Sort the Cheques by local/inter city
Separate the vouchers from Cheques impose clearing stamp of next day in all Cheques, &
intercity clearings stamp if the cheque is out of station.
Another stamp is imposed on back if each cheque namely payees account will be
credited allowing the respective branch to honor /dishonor the Cheques.
Record the particulars of Cheques into clearing registers into local and intercity clearing
register respectively.
For local clearing there is no postage & other charges as drawn on any branch of Silk
bank
The Silk Bank collect service charges for collection of cheques drawn on other bank than
Silk Bank only Rs. 250.

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Next one week in the cash department.

CASH DEPARTMENT:
This is very important department because cash is the most liquid asset and most of the frauds
are made in this department, therefore extra care is taken in this department and nobody is
allowed to enter or leave the area freely. Mostly cash area is grilled and its door is under the
supervision of the head of that department. All the books are maintained in this department and
checked by an officer. The following books are maintained in the cash department.
Cash Balance Book.
Receiving Cashier Book.
Paying Cashier Book.
Token Book.
Cash which is received in counter is entered in the scroll book and receiving cashier book. At the
close of day, these are balanced with each other. If the cheques or any negotiable instrument is
presented by the customer for payment, it is entered in the token book and token is issued to the
customer. At the close of day, the token book & paying cashier book are balanced. Finally the
figure of receipt and payment of cash is entered in the cash balance book and drawn closing
balance of cash.
Cash department performs the following functions:
RECEIPT:
The cash out from the bank is recorded in the bank in a systematic manner. Cash department
performs this task. The deposits of all customers of the bank are controlled by means of ledger
accounts. Every customer has its own ledger account and has split ledger cards.
PAYMENTS:
The amount which is give by bank to customers or to make payment to other bank is also
recorded in the bank in a systematic way. It is a bankers main agreement to pay back money
received for their customers account usually by honoring their cheques.
THE FUNDAMENTALS OF CHEQUE:
There is no arranged form of words or drawing of a Cheque, but in sort to complete the
necessities the Cheque must have the subsequent:
It should be in writing
The absolute order
Drawn on particular banker only
Payment on order
Sum definite in money
Payable to a particular person

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Drawer signs on the cheque

PARTIES TO CHEQUE:
The usual Cheque is one in which there is a drawer, a drawee banker and a payee, or no
payee but bearer.
The Drawer
The Drawee
The Payee
Fifth week I work in the remittance and credit department which perform the
following functions:
REMITTANCE DEPARTMENT provides convenience to the customer of the bank. The main
purpose of this department is move of money.
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.
OBC (outward bill for collections).
IBC (inward bill for collections).
CREDIT DEPARTMENT:
The earning of a commercial bank is mainly resulting from concern charges on loans and
discounts it. Now loans are known as advances or finances. The advances are completed through
the deposits that are reserved in the bank by the customers. The bank pays profit on the deposited
amount and receives mark up on the finance made of different amounts. Silk bank introduced the
mark up based advancing in Jan1, 1985 when the Islamization of the economy was persuade
under this system of advancing the bank is allowed to receive a constant sum of money on the
amount that is outstanding on the account of the customer.
For rest of the time I worked with finance Manager where I learned lot of things
including how to deal with corporate customers, with individual customer and how loans can be
giving and recovered from the customers.

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Chapter # 5: Conclusion
The wealth of the country is flourishing and with the investment positive policies and
their silky execution, the role of banks in todays economy have become a vital one. The banking
industry is also reaping the fruits of this economic explosion by growing speedily over the past
few years. There are a number of mergers occurrence in the economy with overseas investments
coming into the banking sector. It has been only one year since the founding of Silk bank, and
since its establishment it has meant to become the leading bank of Pakistan by that provides
exceptional services to its customers. The bank has seen extraordinary growth in the past year by
opening more branches in the country, growing the deposit support, while also raising the assets
and income of the bank. The services that Silk bank provides have a great market saturation not
only because of its features but also the earnings and markup rates that they charge. Also the
products that Silk bank provides accommodate to sector of the economy. The top management of
the bank is always increasing strategies that deal with with unexpected challenges to convey
products and services more competently. additionally, as the bank is increasing, the number of
employees at Silk bank are increasing, which shows that Silk bank is being considered as an
employer, that provides its employees with a tough environment to effort in, where it can harness
their full potential and shows confidence as an employer by the employees of the bank. finally to
become the important bank of Pakistan, Silk bank has to standard its services to its main
competitors in the industry or the market head in the industry and provide a constant mean of
development in its existing products and services, while introducing new ones to the industry.
5.1
SWOT ANALYSIS
SWOT analysis is a situational which includes strengths, weaknesses, opportunities and

threats that affect organizational performance.
In SWOT analysis the best strategies accomplish an organizations mission by:
1.
Exploiting an organizations opportunities and strength.
2.
Neutralizing it threats.
3.
Avoiding or correcting its weakness.

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SWOT analysis is one of the most important steps in formulating strategy using the organization
mission as a context, managers assess internal strengths distinctive competencies and weakness
and external opportunities and threats. The goal is to then develop good strategies and exploit
opportunities and strengths neutralize threats and avoid weaknesses.
STRENGTHS:
Public confidence
Sound financial strength
Highest profitability
Vast operational network
Role in economic development
Utility bills collections
Corporate branches
Evening banking
Efficient home remittance
Recognition of hard work of staff
SWIFT
Internet access
Pension & salaries payments
Online city branch
WEAKNESSES:
Lack of good delegation

Inadequate, poorly placed network technology
Complex MIS
Deep rooted bureaucratic approval
Lack of long term & short term plans

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Fewer shares in import & export business

Poor resource utilization
Need better service policy
Frequent change in senior management
OPPORTUNITIES:
New style management

Introduction of new products and services
Introduction of new technology & electronic banking
Capital management & equity financing
Secondary market operations
New deposit scheme
THREATS:
Establishment of new private financial institutions & expansion

Govt. sponsored schemes
Political pressure
Reducing branch network
New products form private Pakistan Establishment of new private financial institutions &
expansion
New products form Private Pakistani & foreign banks
Non-banking institutions
Inability to change
Inability to change
Stakeholders interests

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Chapter#6: Suggestions and Recommendations

Based on the SWOT and PEST study of the Silk bank, it is experiential that the Bank like
the other banking sector industries has not been showing up to mark performance. There is a
lengthy list of weaknesses that is given on the preceding page. Most of them are going along
since long time and that all hard work made to remove them have not succeeded. 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 wise and strong policies.
The undue dependence 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
expenses.
Efforts of great significance to be made for the over the counter services of general
banking making it more straightforward and quicker to get a better reply of the
customers.
The behavior of the employee, particularly on the counter has to be firmly monitored and
checked.
The still existed bureaucratic authorization structure has to be demolished.
All advances should be made by getting the maximum security and should focus on
creative work.
Enhanced and complete long-term and short-term planning should be made to forefront
cast the future needs.
There is an option of establishing task energy to establish the efficiency of the policies
being implemented.
The Bank should develop an inclusive staffing policy to make only the proficient ones to
be on the job.
There is still a huge pool of unskilled employees that has to down sized.
There is a lack of promotional component in the planning and budgetary decisions of the
Bank that has to think critically.
All branches of the Bank should be computerized for increasing the effectiveness and
efficiency of its employees.
Efforts should be constant to keep the powers of employees union to the minimum, like
the current situation.
Promotions must not be postponed and should be made on time to further increase the
promise and competence of the employees.

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These and many other that can make a good set of recommendations, which have to be
made potential to get away from the threats and weaknesses and the risks in surroundings that
environs the Bank. The management do considers the policy issue that is not helping the Bank,
but is still in follow due the absence of prudentially regulated system to look after them and the
Bank.
Efforts have been made with severe concern to give Silk bank a standing that it has to maintain
by having practices of:
Right sizing of the employees.
By closing unprofitable branches.
By introducing a merit based selection criteria.
Promotions made conditional with qualifications.
References
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Asghar Ali (Relationship manager), Personal Communication, 29 August, 2012.

Abrar Ahmad (Operation Manager), Personal Communication, 3 September, 2012.
Tahir Jamil Qureshi (Branch Manager), Personal Communication, 1 October, 2012.
http://www.highbeam.com/doc/1G1-82482715.html
http://www.highbeam.com/doc/1G1-195849387.html
http://pkproblems.com/index.php/banking-evolution-in-pakistan/
http://www.quickmba.com/strategy/swot/
http://www.slashdocs.com/instt/silkbank-internship-report.html
http://www.scribd.com/doc/109268838/Internship-Report-Silkbank
http://www.silkbank.com.pk
Silk Bank Ltd Annual report (2012), Karachi.

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Final Silk Bank Report

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INTERNSHIP REPORT ON

SILK BANK LIMITED

MUHAMMAD BILAL SARWAR

FACULTY OF MANAGEMENT AND ADMINISTRATIVE SCIENCES

MUHAMMAD BILAL SARWAR

MUHAMMAD BILAL SARWAR

the Most Beneficent and Most Merciful

I would like to dedicate all my efforts on this report to my loving parents,

MUHAMMAD BILAL SARWAR

MUHAMMAD BILAL SARWAR

MUHAMMAD BILAL SARWAR

MUHAMMAD BILAL SARWAR

MUHAMMAD BILAL SARWAR

Chapter # 1: Introduction to Report

An internship is a type of work experience for fresh job-seekers. Internships involve

PURPOSE OF THE INTERNSHIP

The main purpose of Internship is to do an experiment that how the theoretical

To work practically in an organization.

OBJECTIVES OF THE INTERNSHIP

Discuss thorough study of Silk Bank limited.

MUHAMMAD BILAL SARWAR

BENEFIT OF THE INTERNSHIP

LIMITATION FOR STUDY

METHODOLOGY FOR STUDY

MUHAMMAD BILAL SARWAR

Chapter # 2: Overview of the Organization

History of Silk Bank

MUHAMMAD BILAL SARWAR

Vision Benchmark of Excellence in premier banking.

To be the leader in premier banking trusted by customers for accessibility,

It is our commitment to be a responsible corporate citizen, to support charitable causes

MUHAMMAD BILAL SARWAR

NATURE OF THE ORGANIZATION

SILK BANK VOLUME OF CAPITAL AND RESERVE:

DEPOSITS AND OTHER

RATIO ANALYSIS OF SILK BANK:

2.5.1 SHORT TERM LIQUIDITY RATIO

MUHAMMAD BILAL SARWAR

2.5.2 LONG TERM LIQUIDITY RATIO

PRODUCTS OR SERVICES OF THE SILK BANK

MUHAMMAD BILAL SARWAR

DEMAND DRAFT (D.D)

MAIL T RANSFER (MT):

TELEGRAPHIC TRANSFER (TT):

MUHAMMAD BILAL SARWAR

Pay order against debit of cash

MUHAMMAD BILAL SARWAR

raise home remittances in the course of the banking system

Outward Foreign remittance

Inward Foreign remittance

Actual Amount to customers account

VISA DEBIT CARD:

MUHAMMAD BILAL SARWAR

Less than 50000

MUHAMMAD BILAL SARWAR

Other benefits under all in one account are:

Free Pay Oder & Demand Drafts

MUHAMMAD BILAL SARWAR

Profit paid to customers twice in a year

LOAN AND ADVANCES:

MUHAMMAD BILAL SARWAR

MUHAMMAD BILAL SARWAR

Production and development

MUHAMMAD BILAL SARWAR