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Silk Bank Limited
Ramsha-Tauqeer (BBA hon’s)

CFE Institute Of Management Sciences, Lahore

Affiliated with University of the Punjab, Lahore


 Dedication
 Acknowledgement
 Internship certificate
 Executive summary
 Objective of studying the organization
 Overview of the organization
 Brief history
 Nature of the organization
 Business volume
Main office
 Competitors
 Bank accounts detail
 Organizational structure
 Board of directors
 Human resource department
 Marketing department
 Technical services
 Structure of the finance department
 Use of electronic data in decision making
 Function of finance department
 Finance and administration department
 Financial statement
 Learning as an internee
 Future prospectus of the organization
 Short fall/weakness of the organization
 suggestions
 swot analysis
 Organization Hierarchy
 Strengths
 Weakness

 Opportunities
 threats
 pest analysis
 political analysis
 sociological analysis
 economical analysis
 technological analysis
 conclusion
……. ………………….…………………………………72-74
 suggestions and recommendations
. …………………………..……………………………75
 reference


To My Beloved Parents

For Having Firm Belief in My

Abilities & Whom Prayers Enabled Me


Accomplish This Milestone


“We must work our destiny in our own way and present to the world an
economic system based on true Islamic concept of equality of manhood
and social justice. We will thereby be fulfilling our mission as Muslims
and giving to humanity the message of peace which alone can save it
and secure the welfare, happiness and prosperity of mankind”.




All praise to ALMIGHTY ALLAH alone, the Omnipresent and the most
Merciful and compassionate. The words are bound, knowledge is
limited and time is short to express His dignity. It is one of infinite
blessings of ALLAH that he bestowed me with the potential and ability
to contribution towards the deep oceans of knowledge already existing.
I pay hum-age to greatest personality of the universe; HOLY PROPHET
HAZARAT MUHAMMAD (PBUH) who is forever torch bearer and
spring of guidance in every sphere of life. I am deeply indebted and also
express my gratitude to my respected teachers for their support.

Executive Summary

This report is about my internship program with Silk Bank Limited. In

this comprehensive report, I have discussed about every major aspect of
the bank, which I observed and perceived during my internship program.
In this report you will find the detail about the bank right from its
incorporation to the current position. Along with it, the processes,
policies and procedures of the bank are also discussed in detail. During
my internship program, I mainly worked in General Banking. All the
departments have been discussed in detail and all the policies and
procedures have been described thoroughly. As the main purpose of
internship is to learn by working in practical environment and to apply
the knowledge acquired during the studies in a real world scenario in
order to tackle the problems using the knowledge and skill learned
during the academic process, In this report the detailed analysis of the
organization has been done and all the financial, technical, managerial
and strategic aspects have been evaluated to analyze the current position
of the organization. Along with it, the background analysis, the
prevailing competition analysis, the business process analysis, and the
internal environment and external environment of the organization have
been discussed and the recommendations for the improvement have
been made wherever required.

Objectives of studying the organization

My real objectives of the studying the organization are based on

following facts:

 To study accounting finance issue of the organization its

weakness strength

 To fulfill the requirement of department of Business

Administration (PU) for the degree of BBA

 To improve my knowledge about different department of

this organization

 To high light strength identify weakness of this


 To make better understanding of theoretical financial

concepts being implemented in real world setting

 To have more insights into the type of situation actually

being encountered in a daily organizational work



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.

On March 31, 2008, a Consortium comprising of International Finance

Corporation (IFC), Bank Muscat, Nomura International and Sinthos
Capital Advisor (led by senior bankers Mr. Shaukat Tarin and Mr. Sadeq
Sayeed) acquired 86.55% stake in Silkbank for around $213 million or
$0.47 per share (PKR 29.3 equivalent per share). Under the new
leadership, the Bank will continue to focus on SME & Consumer
financing resulting in efforts of increased profitability

Benchmark of Excellence in premier banking.

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


At silk Bank the customer remains at the core of all activities Service
Quality is our key differentiator.

At silk bank we are honest and upfront maintaining the highest levels
of personal and corporate integrity.

Teamwork is our key strength. Our success in unity.

Out-of-the box thinking is the enabling factor for us to be recognized
as an innovative organization.

Merit remains our key primary criteria for rewarding

Humility remains at the core of all our relationships.

Silk Bank is a Banking Company, which is engaged in Commercial &
Retail Banking and related services domestically
The Group's principal activities are to provide commercial banking and

other financial services. The Group offers personal banking, cash

management, retail loans and other financial services. These services
include deposits, savings/current bank account, vehicle loans, personal
loans, retail trade finance, global banking, lending to priority sector and
small scale sector, foreign exchange and export finance, corporate loans
and equipment loans.
The Silk Bank is making every effort to meet the up-coming challenges
through strategic planning and making the best use of the resources at
its command. It has planned to institute major improvements in
customer services and internal systems to improve efficiency. It also
intends to launch innovative products. The bank is increasing resource
mobilization through regular deposit campaigns and accelerating the
process of recovery of outstanding advances and non-performing assets.



(in Million) 2013 2014 2015 2016 2017

Share Capital 13,431 13,431 21,431 21,431 23,431

Investments 14,853 18,105 35,513 37,488 38,267

Deposits 69,433 68,770 81,098 86,787 110,278

Advances 56,038 58,967 61,074 64,803 85,851


Silkbank Limited

13-L, F-7 Markaz.


Direct Tel; (051) 26080-26-27-28,

PABX; (051) 26080-77-78-79 EXT;111

Fax; (051) 26080-29


Website: www.silkbank

Central Depository Company of Pakistan Limited (CDCPL)

Share Registrar Department

CDC House, 99-B Block ‘B’,

S.M.C.H.S., Main Shahra-e-Faisal


Tel. No.: Customer Support Services (Tol-Free) 0800-CDCPL (23275)

Fax: +92-21-34326053




 National Bank of Pakistan

 Bank Alfalah
 United Bank Limited
 Muslim commercial bank
 Citibank
 Habib Bank Limited
 Faysal Bank
 Prime Commercial Bank
 AbnAmro Bank
 Saudi Pak Commercial Bank
 Indus Bank
 Soneri Bank
 The Bank Of Khyber
 Metropolitan Bank
 Standard Chartered Bank



Silk bank All-in-One Account provides you with the ultimate security
and protection, amazing banking facilities and much more convenience.
All absolutely free.
As a Silk bank All-in-One Account Holder, you will be provided with a
host of free protection & transactional benefits. The various protection
benefits offered include the following:

 ATM & Over-the-Counter Cash Snatching

 Mobile Snatching
 Snatching of Vital Documents
 Burglary of Home Contents
 Auto-Insurance rate as low as 2.5%

Not only that, as a customer you are also entitled to a host of free banking
facilities including cheque books, pay orders, intercity transactions and
your very own Silkbank VISA Debit Card which provides exclusive
discounts at over 100 partner outlets nationwide.


Online express gives customer complete online solution under

one roof with a variety of tier base transactional benefit.


Silk bank Business Value Account is a unique business current account
that offers protection & transactional benefits specifically designed for
catering to your daily business requirements.
Now introducing for the first time in Pakistan, Silk bank Business Value
Account which provides you with free comprehensive business
inventory coverage up to Rs.1 Crore, arranged through Saudi Pak
Insurance Company Limited. Not only that, you will also receive free
protection against cash snatching for cash withdrawals from ATMs or
Silk bank branches.

As a customer you are also entitled to a host of free banking facilities

including cheque books, pay orders, intercity transactions and your very

own Silkbank VISA Debit Card which provides exclusive discounts at
over 100 partner outlets nationwide, in addition to free statements, SMS
Alerts and Silkbank-Direct Internet Banking.
No more hustling and bustling to your branch, with the Online Express
Account you can conveniently get services from ANY Silkbank branch
and enjoy Unlimited Transactions across the nation, absolutely

 Free Unlimited Nationwide Transactions

 Free Pay Orders & Demand Drafts
 Free Internet Banking
 Free SMS Alerts - Free E-statements & much more.


With On-line Express Account you can access your account from any of
the Silkbank branches and enjoy a real time banking experience. Based
on your balance, On-line Express Account enables you to enjoy
unlimited transactions absolutely free!


Why visit the branch when you can access your account at your own
time and convenience, Free of charge! Your Online Express Account
can be accessed through Silkbank-Direct Internet Banking enabling you
to enjoy services such as: Balance Inquiry, Funds Transfer, Utility Bill
Payment, Mobile Top Up, Credit Card History & Bill Payments and
many more!


Want a detailed summary of your transactions more often? With On-line
Express Account you can receive E-statements through your email
account at a frequency of your choice, absolutely free.
Want to stay up-to-date with your transactions? With On-line Express
Account, we enable you to receive SMS Alerts for all your account
transactions Free of charge based on your balance.

Silkbank’s Salary Premium Account is an exceptional current account
that offers additional perks with your salary!
As a Silkbank Salary Premium Account Holder, you can avail a host of
financial convenience, protection and lifestyle benefits.

1. Hassle free salary processing.

2. Cash snatching Coverage.
3. Discounted Auto Insurance at 2.5%!

You will also be entitled to a host of banking facilities including cheque

books, pay orders, intercity transactions and VISA Debit Card.



Introducing Silkbank's Munafa Rozana Account - the only savings
account in Pakistan that pays profit in cash, DAILY! With Silkbank
Munafa Rozana, profit on your funds is calculated and paid out into your
account, DAILY.

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

 Profit paid out twice a year

 Monthly profit of 4.5% on all tiers
 VISA Debit Card
 Profit calculated on minimum balance every month
 Can be operated by individuals or companies
Open your Silkbank Super Saver account today to enjoy high profit
every month.

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


With the Salana Munafa Term Deposit Account, you can earn the
highest profit with payout on maturity. Additional benefits include:

 Overdraft facility of up to 90%

 Free Online banking, E-Statement and Internet Banking facilities
on profit-nominated account
 Pay Order/Demand Drafts on profit-nominated account
 VISA Debit Card with profit-nominated account
 SMS Alerts

Open your Salana Munafa Term Deposit Account with an investment of

Rs.100,000 & above.


With the Silkbank Mahana Munafa Term Deposit Account, you can earn
the highest profit with monthly payout. Additional benefits include:

 Overdraft facility of up to 90%

 Free Online banking, E-Statement and Internet Banking facilities
 Pay Order/Demand Draft facility with profit nominated account
 VISA Debit Card with profit nominated account
 SMS Alerts

Open your Silkbank Mahana Munafa Term Deposit Account with an

investment of Rs.100,000 & above


Mehfooz Har Pal guarantees financial well-being by paying out cash on

death, disablement or prolonged absence from work as a result of an
accident or hospitalization due to an accident. The plan provides 24 hour
worldwide coverage. The plan is underwritten by EFU Life.


Roshan Mustaqbil is a flexible, tailor-made, complete financial planning

package exclusively designed to cater the future education needs of a
child. The plan is underwritten by EFU Life Assurance Ltd.

The plan offers a method of disciplined savings that helps accumulate a

lump sum amount that can be utilized to pay for the higher education
needs of the nominated child. In addition, it guarantees a financially
secure tomorrow even in case of any mishap.


Silk Health Plan is a comprehensive healthcare package that provides

financial protection in case of an illness or accident that leads to
hospitalization. The plan is underwritten by Allianz EFU.

With rising health care costs, sickness may not only lead to mental
distress for the whole family but could also adversely affect finances for
a long time to come. The implications become even more severe if the
illness results in prolonged hospitalization.


Sunehra Kal is a comprehensive financial planning package exclusively

designed to cater all your financial needs. It gives you the dual benefit
of protection along with potentially higher returns over the long-term on
your savings and investments. The plan is underwritten by EFU Life
Assurance Ltd.

With Sunehra Kal you can now turn all your dreams into reality by
responding timely to the changing circumstances and achieving your
goals like buying a new car, a beautiful home and contentment of your

family, financial security, funds for child’s marriage and of course a
comfortable retirement.


Silk Health Line is a comprehensive family package that is designed to

provide a cash-less coverage in case of an in-patient hospitalization. The
product is aimed at providing quality healthcare in case of a
hospitalization due to any illness, sickness or accident. The product is
underwritten by Asia Care Health & Life Insurance Co. Ltd.

In fact, there are certain illnesses and accidental injuries that are not only
long lasting, painful and life threatening but have an expensive
treatment, causing a mental and financial distress to the entire family.
Silk Health Line is an easy-to-use, economical yet a precious plan that
ensures comprehensive healthcare to the entire family.


Silk Education Takaful, a Shariah compliant education plan, exclusively

designed to tackle your child’s future financial needs. It provides an
excellent combination of Takaful with Shariah compliant Investment
Return to secure your child’s future. The plan is underwritten by
Dawood Family Takaful Limited.
It is a comprehensive education plan that especially caters to your child’s
future financial needs for education and secure future. With proper
financial planning and wise investment in Silk Education Takaful you
can give your child a future as per your dream.


Silk Secure Takaful is a Shariah compliant investment and financial

protection vehicle exclusively designed to provide a financially secure
tomorrow. A tomorrow which provides you an opportunity to achieve
your goals of buying a beautiful house or a new car, providing your
children with higher savings, daughter’s wedding or an independent
retirement. The plan is underwritten by Dawood Family Takaful

Your current financial position may be enough to secure a financial

future for your loved ones but with life being uncertain, this may
drastically change and hamper your dreams to turn it into reality.


Silk Retirement Plan is an effective means of achieving financial

independence at retirement. The contributions to the retirement plan are
invested in accumulation of units to build-up substantial capital at
retirement. This capital is applied to provide a pension payment stream
from the age of 60 years. The product is underwritten by EFU Life
Assurance Ltd.

In addition to the retirement benefits, the plan also provides an

opportunity to choose from a range of protection benefits enabling the
plan to be tailored to one’s needs. The Silk Retirement Plan can help you
stride in to the golden years of retirement with dignity and pride.



If any Bank, Exchange Company or Money Transfer Company would

like to establish home remittance arrangements with Silkbank, then
please feel free to contact the following:


Remitting funds to your loved ones in an instant was never this easy.
Silk Fauree Transfer is a remittance service, which enables you to
receive your funds instantly and that too absolutely free from anywhere
outside Pakistan. Send money through any of our Authorized
Correspondent Banks, Money Transfer Companies or Exchange
Companies from around the world.
1) Fauree Cash

Receive cash up to Rs. 500,000 for instant collection from any of our 85
Silkbank branches spread across 32 cities in Pakistan.

 Remittance ID Number and original CNIC of the beneficiary
 Valid mobile number of the beneficiary for SMS Alerts

2) Fauree Credit

Funds can also be directly credited to your existing Silkbank account.

You can access funds using your cheque book or your Silkbank Visa
Debit Card at over 1.6 million ATMs worldwide and over 4,500 ATMs


 Silkbank branch code & complete (10 digits) Account Number

3) Fauree Transfer

Even if you are not a Silkbank Account Holder, your funds can be
credited to your account maintained with any other bank in Pakistan
through IBFT or RTGS module on the same day.


 Complete Bank account number with Branch Code

 Beneficiary’s bank and branch name in P
 No remittance fee for the sender or the beneficiary
 Fast, reliable and hassle free funds transfer anywhere in Pakistan
 Same day credit to your account
 Instant cash over the counter payment

 Free SMS Alerts for the beneficiary

 1. Al-Ghurair Exchange – UAE
 2. Hafiz Bros – UK
 3. Western Union - Worldwide
 4. Sigue Money Transfer – Worldwide
 5. DEX International – UK
 6. MT Global - UK
 7. Intercity Money Changers – UK
 8. Hello Paisa – South Africa
 9. Platinum Exchange - Canada
 10. Arab link Money Transfer – UAE


Send your remittances to your loved ones in Pakistan from any corner
of the world through Western Union. The payment can be collected
instantly from any of the Silkbank branches.

The beneficiary is required to submit the following information at

Silkbank counters:
1) Country origin of funds
2) Amount to be received
3) Sender’s full name
4) Receiver’s full name
5) Transaction Reference No.
No account with Silkbank is necessary to collect Western Union



Silkbank offers the best Personal Loan for all your needs. Now you can
apply for a fresh loan of up to Rs. 2 million. Not only this, but you can
also transfer your outstanding loans from other banks and avail a range
of benefits while enjoying the same monthly installment or even less.
With Silkbank Personal Loan, you can live up your dreams and enjoy
life to the fullest. It is fast, convenient, flexible and affordable.


When your cash runs dry…. you can count on us!

Our financial needs change at different stages of our lives. Whether it is
realizing your dreams, starting a new career, beginning a new chapter
with your loved one, or planning your child’s education, Silkbank’s
Ready Line is here to start that journey with you. Ready Line is an
evergreen Running Finance facility specifically designed to meet your
emergency financial needs. It not only provides peace of mind but also
helps customers meet their emergency cash needs and that too with the
utmost convenience and freedom.

We believe that time is money, and therefore carry out fast processing
of your application once you apply. So apply now and avail an instant
credit line without the need for any collateral.

You can use Ready Line the way you want with complete peace of mind

a. Meet your day-to-day and emergency needs e.g. education of

children, health care, housing repairs, weddings, and family
maintenance (including lifestyle and personal expenses)

b. Repay expensive debts like Credit Cards payments or any other type
of personal loans

c. Make payments to anyone through demand drafts, pay orders, cheques

and cash
Features & Benefits:

 Credit facility of upto Rs. 2 million

 Balance transfer facility
 Mark-up payable for only the amount utilized
 No collateral requirements
 Free VISA Debit card
 Optional Life Insurance (Credit Protector)

Welcome to the world of Silkbank-Direct Internet Banking. Click &
Bank at your convenience in the most secure and simple way. With
Silkbank Internet Banking service you can access and manage your
accounts anywhere, anytime.
Now your bank is just a click away.

With Silkbank-Direct you can enjoy these amazingly convenient

internet banking facilities:

 Balance Inquiry
 Mini Statements
 Transaction Details
 Low Balance Alerts
 Account Statement Requests
 Fund Transfers
 Pay Order/Demand Draft Requests
 Cheque Book Requests


Simplify your life with Silkbank E-statement. You can request e-

statement on a daily, weekly, monthly, quarterly, half-yearly or annual
Register yourself by filling out the application form and drop it at your
Silkbank branch. An email will be generated confirming your Silkbank
E-statement facility.


Silkbank introduces Inter-Bank Funds Transfer Facility, a fast, secure

and convenient service which allows you to transfer funds between 18*
1LINK member banks using your Silkbank account. IBFT facility can
be used 24/7, through Silkbank ATMs or Silkbank-Direct Internet
You can transfer funds to and from any member bank within a matter of
seconds, at your own ease. You can pay business partners, your child’s
school fees or your loan installments, without standing in line at a

Our IBFT facility offers you the following benefits:

 Real-time payments through member bank ATMs to & from
your account(s)
 Fast, safe and transparent transfer of funds
 Coverage across a wide network of 1-LINK Member banks
 24-Hour service through ATMs and Internet Banking
 Secure & reliable mode of funds transfer
 Convenience of making payments from home or anywhere you
are, through Silkbank-Direct Internet Banking


Why walk to bank when you can talk to the Bank!

With Silkbank Phone Banking, your account is on your finger tips.

Silkbank Phone Banking officers ensure that your financial needs are
taken care of with ultimate accessibility, convenience and security, 24/7
throughout the year.
Facilities through phone banking:


Silkbank SMS Alerts Offer our customers the ability to stay informed
around the clock, anywhere, any time.
Once enrolled for SMS Alerts, you will receive alerts on the transaction
amount you select, from the following set of options:


 All Transactions
 Transactions of Rs.50,000 & above
 Transactions of Rs.250,000 & above


 All Transactions
 Transactions of Rs.10,000 & above


Silkbank welcomes you to a world of convenience and security. With

the Silkbank Debit Card, you get 24-hour access to your cash anytime
and anywhere around the world. Your VISA Debit Card offers you
international acceptance and enables you to draw your cash from your
account anywhere, any time.
With the Silkbank Visa Debit Card, you are a privileged customer at
over 54,000 retailers in Pakistan and millions of outlets globally.
In case of a stolen or lost card, you are protected against fraudulent
transactions made on your card after you report the loss.
For more information regarding product features, visit your nearest
Silkbank Branch or call 111-100-333 where our Phone Bankers are
ready to assist you round the clock.


Silkbank now offers its customers unmatched convenience and comfort

with the launch of its Utility Bills Payment Service (UBPS). Customers
can now use their Silkbank VISA Debit Card (VDC) at any Silkbank
ATM to pay their utility bills or top up their mobile phones, around the
clock, free of charge!


 Pay utility bills

 Settle post-paid mobile bills
 Recharge pre-paid mobile phone


Experience banking on your smartphone with SilkMobile where

Silkbank stays with you all the while.

 Balance Inquiry
 Funds Transfer
 Bills Payments
 Mobile Top-Ups
 Mini Statements
 Pay Order Requests
 Deals and Discount
 Product Information


Our Corporate Banking team is trained to focus on ‘the customer’. It is

driven by customer needs, goals and success. Whether it’s arranging
capital for day to day operations or offering pertinent financial advice
for a major business acquisition, we have the expertise and experience
for it all. Our corporate banking is structured to serve as a one-stop shop
for clients ranging from local corporates to multinational companies. We
understand customer’s business and its exact needs, which is why we
offer customized solutions to unlock its full potential. And of course,
our corporate banking doesn’t come without a personal touch! Our
experienced team of Relationship Managers gives our corporate
customers their complete attention and ensures they receive premium
service along with a quick turnaround.


Silkbank has an experienced and professional Investment Banking team

that has been a prominent player in the market, providing a complete
array of Debt and Equity advisory and arrangement services while
maintaining a vast distribution network of potential investors. The team
is actively involved in raising short and long term debt for Corporates
from capital markets and also holds the distinction of being market
leaders in the arrangement of short term unsecured funds (i.e.,
Commercial Papers). In addition to Debt and Equity advisory, the team
also provides other advisory services such as restructurings, mergers &
acquisitions and buy / sell-side advisory. A list of the services provided
are given below:

Capital Market Advisory:

 Long Term Debt – Listed and Privately Placed TFCs
 Short Term Debt – Commercial Papers

Arrangement Services:

Placement of debt / equity issues to banks & non-bank participants.

Other Advisory Services:

 Debt Syndications
 Private Equity
 Transactions
 Mergers & Acquisitions
 Restructurings
 Buy / Sell-side Advisory

In an exceedingly dynamic an exceedingly dynamic and volatile
economic environment Silkbank treasury has evolved as an active player
in the Financial Markets. Here at Silkbank, we nurture a culture of
enhancing the return on investments with complete focus on customer
needs for their financial solutions. The Treasury seeks to do this by
becoming the Risk solutions provider, offering quality treasury products
and being the leader in product innovation.


The Silkbank Fixed Income Trading unit maintains an active trading
desk in the secondary Corporate Debt markets thus is able to provide
competitive bids / offer quotes in all liquid Corporate Debt instruments.
The team is highly skilled at providing efficient services, strategy

recommendations which are consistently changing with the market
conditions to its individuals and corporate clients. Fixed Income Sales
Desk also provides timely views on interest rates and economic
conditions enabling the clients’ to make prudent investment decisions.
We also provide an IPS Account Facility to both corporate and
individual clients. The Desk establishes a dedicated corporate
relationship with each client and caters to the individual needs of
Corporate, Insurance companies, Pension, Provident Funds, etc.

Silkbank Limited is an active player in the interbank market, providing
competitive prices to satisfy the customer’s FX needs arising from
trade, remittances and other Forex flows in all major currencies. Our
enthusiastic and dynamic sales and trading personnel are committed to
providing competitive quotes in all major currencies with up-to-date
market intelligence, advice and timely execution of deals to our
customers throughout the trading day in local and global currencies.
Information in respect to the prevailing rates of most of the currencies
of the world is regularly updated for the Corporate and individual
clientele of the Bank, as well as information about market changes and
expected opportunities for them to take necessary action if required.

Silkbank Money Market Desk, through a team of qualified and
experienced professionals contributes in managing the liquidity position
of the bank, amongst other activities. The Silkbank Money Market is
also one of the market makers for Treasury Bills, Pakistan Investment
bond and Term Finance Certificates.


Our motto to serve all sizes of business organizations – be it an SME,

middle market firm or large corporation – has always been, ‘Yes we
can’. Which is why, our nationwide network of branches is fully
equipped to cater to our middle market customers’ needs and ensure they
also enjoy superior service. We focus on providing structured working
capital lines along with Current/Savings Accounts, in order to allow
medium enterprises to enhance their trade volumes and emerge into
larger corporations.

To further increase their convenience, four of our branches have been
dedicated to middle market customers, located in Karachi and Lahore’s
City Trade Centers, which offer on the spot customized services and
one-stop solutions to middle market customers.

Our City Trade Center Branches are located at:

 Jodia Bazar and Cloth Market in Karachi
 Circular road and Badami Bagh in Lahore



Munnawar Hamid Chairman

Khalid Aziz Mirza Director
Nasim Baig Director
Rashid Akhtar Chughtai Director
Shahzad Murad Director
Shamsul Hassan Director
Tariq Iqbal Khan FCA Director
Azmat Shahzad Ahmed Tarin President & CEO
Shaukat Tarin Advisor to the Chairman

Faiz UL Hasan Hashmi


Khurram Khan

Audit Committee

Tariq Iqbal Khan FCA Chairman

Nasim Baig Member

Faisal Anis Sherwani Member

Wajih Zaidi Secretary


M. Yousaf Adil Saleem & Co.

(Deloitte Pakistan)
Chartered Accountants

Legal Advisor
Ghani Law Associates


Board of Directors


Member Management Committee

Zonal Chief RGM Commercial Head Corporate

Branch Manager Regional GM Chief Manager


 Cash department
 Business Development and New Initiatives
 Consumer Banking Department
 Compliance and Control Department
 Clearing and collection section
 Financial Control Department
 Human Resource Management Department
 Information Technology Department
 Project Management
 Risk Management
 Strategic Planning and Investment Department
 Finance Division
 Corporate Banking
 Islamic Department
 Commercial Banking
 Marketing Department

The main purpose of cash department is that it deals in money. As
bank is borrowing and lending institution, therefore cash is the top
most priority of Bank. Another aspect is that cash department is for the
security purpose, security in a sense that there should be no
embezzlement of funds or in money leaded to bank by any party or
person. The efficiency of bank is also related to this department the more
efficient the bank is the stronger and busy is the cash department. Cash
department is divided into two i.e.

 Receipts

 Payments


The receipts side deals in

1. Collection of funds.
2. Acceptance of deposits.
3. Collection of utility bills.

The payments side deals with

1. Payments of check
2. Remittances



Every day, organization comes up with new and invigorating product

services to attract customers. In order to compete with such rapid
changes, fast growing market and stiff contenders. SILKBANK have
dedicated an entire unit whose job is to monitor such transformations
and develop new business strategies in order to keep their business up
to mark.

This department basically is the think tank of the organization they deal
in long term strategies and provide appropriate situation to deal with
business issues. This function works closely with other departments and
he president in order to identify organization and tactical goals. The
entire study is based on statistical data and research carried out from
time to time.


This department primarily meets the needs of individual customers. It

deals with selling marketing and managing consumer products and
providing various services to its customers.

The consumer banking department targets the consumer market their

sales and product development is completely managed by specific teams
that are wholly dedicated to the specific product. Each team has the
responsibility of making their respective product efficient competitive
and user friendly. The product being offered by SILKBANK bank.


Regulatory compliance refers to systems or departments in the

organization that ensure that personal are aware of and take steps to
comply with relevant laws and regulations.

Bank compliance strategically supports and reinforces the

organization’s goals and objectives. Broadly speaking, compliance
means adherence to local laws and regulations including banking
companies’ ordinance 1962 and SBP prudential regulation and internal
policies and rules of the bank and specific operational procedures.

Moreover, compliance is not only a function of complying with the law,

but a broader integration with the organization’s corporate

Overall compliance department provides advice and guidance to the
business to the business groups to conduct their work within the
requirement of the regulatory environment and also provides regular
awareness training to the bank staff in order to promote a healthy
regulatory climate.



Cheques/Drafts/Pay Orders when received for collection from

customers/departments with pay-in- slips, credit voucher or customer’s
instructions in writing. These cheques are properly stamped with
Bank’s special crossing stamp immediately. Name of payee and title of
account get tallied. Cheques/instruments are discharged with the stamp
“Payees account will be credited on realization”.
The particulars of collections are entered in the Outward Bills for
Collection Module.


The drawee branches shall ensure that fate of all Cheques lodged under
the head “Local Bills for Collection” is given the same day on which
these are presented by the collecting branches.


All instruments which shall be received at the branches for collection

are entered in the respective module and thereafter such cheques are
processed. The proceeds of such inward bills are remitted to the

collecting branches through IBCAs/or returned unpaid as the case may


When the bank collect/pay the proceeds of Cheque from other bank on
the behalf of its customers then we lodged it in Local Clearing. There
are two types of clearing:


The cheques/demand drafts/payment orders etc. drawn on branches of other

member Banks received by bank from its customers for collection, are entered
in the Clearing Outward Module. The clearing slip shall then be prepared for
each Bank in which the number of each instrument along with the amount shall
be written. Then the total of all the cheques entered in the slip shall be made
which total shall agree with the respective Bank column of Clearing Register


All the cheques/instruments received from the State Bank of Pakistan

are sort out branch-wise. The cheques sent to the branches along with
the clearing slip. The branch debit the cheques to respective account
holders and give credit to Main Branch through HO A/C. and at this
process the branch make the payment on behalf of its customer.



When the cheque is presented in SILKBANK to be deposited in their

respective payee’s accounts. Different stamps are put on cheque before
their lodgment in outward clearing.


Crossing means two parallel lines drawn across the face the cheque with
or without words written in between them. Crossing may be general or
special. In clearing, cheque is crossed specially. Cheques are stamped
with Bank’s name between two parallel lines to constitute special
crossing. After the cheque has been crossed specially, the holder cannot
receive payment except through the banker named on the cheque
crossing saves the instrument to go it in an effective means of
minimizing the risk of loss.


After the cheque has been crossed specially, clearing stamp is put on the
cheque and other instruments, with the next date. So these cheques
would have to be presented in their concerned drawer banks on the
subsequent day.


The word endorsement means anything written or printed on the bank

of an instrument. So endorsement stamp has to put with words “payee’s
account Credited in SILKBANK, Lahore.



After putting these three stamps on cheque & other negotiable

instrument, they are sent to NIFT.
NIFT after segregation the cheque of different banks delivers them to
their concerned banks. In short, NIFT plays the role of clearing house
for the banks.


After delivering the cheque to bank NIFT send report to SILKBANK
Lahore, then the bank’s staff tally the amount of that report for its own


Next morning these cheques are delivered to the respective banks

between the 9:00 to 9:30. In the same manner other banks present their
clearing drawn on SILKBANK. Total number of cheques and their
amount delivered to other banks and received from them are written on
the Clearing House schedule branch for their payment. After proper
security of cheques, verification of signatures and confirmation of
balance in the account, the Officer Clearing Department Debit the
customer Account. If any cheque is not passed due to insufficient
balance any other reason, Officer Cash Department returns the same
cheque by attaching a cheque return memo containing reason for return.


If the cheques are clear then the SILKBANK Lahore credits the
customer account. If the bank receives the outward return due to any
reason then this cheque is entered into the cheque returned register and
bank charges are deducted according to the schedule of charges.
Then send the outward and return inward as IBDA (inter branch Debit

Advise) to Main Branch. And it sends outward return and inward to



FCD is responsible for the bank’s financial records, ensuring that the
assets and liabilities of the firm are properly controlled, and providing
accurate and timely financial information to senior management as well
as to statutory and regulatory bodies.

The department provides profitability analyses, business plans, and
budgets supporting current and future business initiatives. Currently our
financial control group is divided into seven sub groups.

o Financial Reporting Unit

o State Bank Reporting Unit
o Branch Licensing Unit
o Taxation Unit
o Budgeting and Management Reporting Unit
o Properly Management Unit

Human resources is term which many organizations describe as the
combination of traditionally administrative personnel function with
performance management ,employee relation and resources planning.
The field draws upon concepts developed in industrial organizational

The objective of human resources is to maximize the return on

investment from the organization, human capital and minimize financial
risk. It is the responsibility of human resource managers to conduct these
activities in and the human resources management group at SILKBANK
is divided into the following areas:

o Organizational Development
o HR Strategy
o Compensation and Training
o HR Administration
o HR Financial Services and Development Compensation and


Today, the term information technology has ballooned to encompass

many aspects of computing and technology, and the term is more
recognizable than ever before. The information technology umbrella can
be quite large, covering many field. It professionals perform a variety of
duties that range from installing application to designing complex
computer networks and information databases . A few of the duties that
it professionals perform include data management, networking
,engineering computer hardware ,database and software design as well
as the management and administration of entire systems. When
computer and communication technologies are combined, the result is
information technology or “info tech”



Strategic planning &investment group (spic) of the following four


o Legal Affairs Division

o Corporate Affairs Division
o Capital Market
o Strategic Planning Division

The Commercial Banking Group has been formed to cater the needs of
small & medium size customers for increasing Bank’s business
significantly with clear focus, repositioning of resources and active
marketing to improve Bank’s profitability. Commercial Banking will
deal with customers having sales turnover and aggregate credit exposure
as per benchmarks prescribed in the SBP’s Prudential Regulations.

This Group’s emphasis will be to meet necessary business needs of

customers which are numerous as compared to CIB clients but their
individual credit requirements are relatively much smaller. In view of
this peculiar nature of this business segment that involves a higher turn
over a much wider network is needed. The SME will concentrate on
rebuilding its set up which suits to its peculiar needs on all locations.

Business transactions relating to commercial activities fall under the

umbrella of “Commercial Division” which has following

 Commercial Banking Group-CBG

 Agricultural Financing Department - ACD
 Commodity Finance unit
 Investment banking unit
 Asset Management Company

Commercial banking Group (CBG) operates through six regional field offices
located at Lahore, Gujranwala Rawalpindi, Multan, Faisalabad and Karachi.
These regional offices further have hubs in all major cities.CBG deals with
existing and prospective customers having credit requirements within the range
of Rs 21million to Rs 250 million. CBG has dedicated and adequately trained
staff to cater and serve various business clusters /segments. Bank provides
following facilities through CBG counter;

 Working capital facilities including Running finance/cash finance

and bill discounting.
 Financing of imports and exports
 Trade financing including bank guarantee issuance and discounting
 Lease/term finance
 Woman entrepreneur finance scheme
 Gold loan/Son ape sohaga



Agriculture sector is backbone of our economy and Silkbank is playing

its due role in agriculture sector through this department. Product and
other details are available under the head of agriculture on the website.


This unit provides short term self liquidating financing facilities to a

range of commodity producers and trading companies from the mid
sized specialist product traders to the globally integrated major trading
houses. The Bank is providing financing against commodities (like
Grains, Metals, live stock, oil, cotton & Sugar). Financing solutions
includes variety of pre-export finances, pledge, toll finance, counter
trade finance and others including but not limited to import financing,
export financing, guarantees, warehouses and receivable financing.

Realizing the increasing diverse needs of our customers for advisory &
structured finance transactions, this department is dedicated for
investment banking to provide comprehensive and innovative financial

Following are the areas of specialization.

 Project financing
 Advisory & Strategic investment
 Syndication & Structured Finance
 Debt Capital Market



The marketing department of SILKBANK bank is very integrated. It is
well structured as shown in the hierarchical chart. The marketing
department is based in head office. It is consisted of highly professional
people .it is mix of those people who got promotion from the sales and
some are inducted from the professional market of banking.


Policies are consistent and persistent due to unstable political
Government and military interventions. Every one or second year, new
or amended policies are in place. In such a highly unstable and
unpredictable financial environment, the role and responsibility of
marketing team become very important.
Following are the functions of marketing team:
 Every year, there is a corporate objective of SILKBANK
bank. It is both strategically as well as financial. As per the
objectives set the marketing team develops or design

marketing strategies to meet these commercial and strategic
 The research conducted is analyzed and used to develop
 If there is a new situation as per the new need in financial
sector the marketing team adds new line extension in the
product or launches new products
 Working is done to identify the brands, images, value, brand
contract and position
 New strategies are made increase the market share of
consumer finance as well as commercial finance.
 New campaign on media, net and on branch are designed
 New broachers are designed printed and circulated in the
 As per the new situation due to the increasing interest rate,
SILKBANK has also increased interest rate and its offerings
on the saving accounts.


As is given in the structure of sales department, the head of sales is GM
sales reporting to CEO. He is assisted by Three Sales managers on the
basis of their zones. Each zone further is divided in the regions .Each
region is headed by a regional head. In the regional headquarter there is
District sales consultant for consumer banking Re is the permanent
employee of bank. He recruits and hires 6 to 10 sales reps on
commission base salaries. For the commercial banking, the branch
managers are responsible for the business. As consumer banking is
comparatively a newer business tool for the banking, the banks are
specially focusing on this important opportunity. Following are the
functions of sales department

 To understand the needs of the customer and the feature and benefits
of products.
 To pursue for the sales target set by the senior management.
 To achieve both the strategic as well as financial budgets.
 The implementation of strategies given by the marketing department
 To translate the strategies into tactical plans and their execution
 The sales reps are also equipped with the tools for selling the brands
in this competitive world.
 They facilitate the leasing and loaning of car, home and credit cards.

 As per the working of marketing department, the sales people are
provided with
 List of potential customers in a city or town. They have also
categorized the corporations as A*,B* and C*
 The sales force approaches the customers according to the potential for
different products of consumer banking
On the basis of business transactions through the bank, of a trader and
salary of an employee, the bank gives leasing and loaning. The employee
of a category organization get maximum benefit and enjoy larger limit
for the credit card and can get their car or home loan easily and promptly.
Similarly the bank also does agriculture loaning through one window
operations and thus increasing its market share m this segment.

Finance division


Balance Sheet Results Monitoring

andC o m l i a n
Shares Department

Company Affairs

It controls the routing financial matters. The permission of special

expenditure incurred in the branches, and other such cases. The daily
position and HO Extracts are daily sent to this division by all the
branches. This division not only estimates the profit and loss of every
branch but also prepare overall income statement and balance sheet of
the complete bank. It also keeps record of total deposits of the bank and
then their classification in the form of loans into different sectors of
economy. The basic functions are:
 Monitoring the fiscal and financial policies of the bank
 Deals in exploring means for investing surplus bank funds
 Maintenance and investment of Gratuity and Pension Funds of
the employees

Finance Department


The finance department of a bank takes responsibility for organizing the
financial and accounting affairs including the preparation and
presentation of appropriate accounts, and the provision of financial
information for managers. The finance team manages the internal
finances of the firm. They are the banks internal management

Finance department records values from financially relevant

transactions of value adding processes. It enables to maintain a
consistent, reconciled, auditable set of books for statutory reporting, and
for consolidation and management support. At the same time, the data
gathered serves as one source for other analytic scenarios such as
Regulatory Compliance or for scenarios groups such as Portfolio & Risk


Every branch has its own Accounts Department which is responsible to
record and process each & every business transaction taking place
during the working day. This Department consolidates the position of
the branch at the day end in the shape of Assets, Liabilities, Revenues
and Expenses. This position is daily sent to the Finance Department of
Head Office which consolidates all these Statement of Affairs bank
wise. This position is sent to the State Bank of Pakistan (SBP).
The main function of Finance Department of Head Office is:

 To maintain smooth liquidity of bank by arranging funds from

SBP and other banks if required.
 This Department is also responsible for making physical
investment on behalf of bank into government securities and
other corporate securities.



Audit of Rectification and

Branches Persuasion

This department ensures appropriate system of check and

balance. It checks all the regularities, errors and forgeries if any, under
the rules and regulations formed by the Government of Punjab. For this
purpose it doesn’t only keep an eye on the branches in their vicinity but
also conduct surprise and comprehensive audits of the branch level. It
not only points out the discrepancies but also tries to solve it. Surprise
audit maintain a good check on the overall working of the branch
especially of the side of finance.


The finance department of a bank takes responsibility for organizing the
financial and accounting affairs including the preparation and
presentation of appropriate accounts, and the provision of financial
information for managers. The finance team manages the internal
finances of the firm. They are the banks internal management

Finance department records values from financially relevant

transactions of value adding processes. It enables to maintain a
consistent, reconciled, auditable set of books for statutory reporting, and
for consolidation and management support. At the same time, the data
gathered serves as one source for other analytic scenarios such as
Regulatory Compliance or for scenarios groups such as Portfolio & Risk

Every branch has its own Accounts Department which is responsible to
record and process each & every business transaction taking place
during the working day. This Department consolidates the position of
the branch at the day end in the shape of Assets, Liabilities, Revenues
and Expenses. This position is daily sent to the Finance Department of
Head Office which consolidates all these Statement of Affairs bank
wise. This position is sent to the State Bank of Pakistan (SBP).
The main function of Finance Department of Head Office is:

 To maintain smooth liquidity of bank by arranging funds from

SBP and other banks if required.
 This Department is also responsible for making physical
investment on behalf of bank into government securities and
other corporate securities.

Use of electronic data in
decision making

In today’s banking new devices have been introduced for efficient

and courteous. service to the client. Like online banking, net
banking, mobile banking, auto teller machine and electronic
In silk bank limited, most of the decisions are made after getting
the approval of authority using electronic data .now a days
statement of the account is not dispatched to the account
holders. Instead they have been getting given option to get their
statement printed while using net banking. Silk bank has its own
network of 334 atm’s in 83 cities
Moreover customers can give all types of instructions in respect
of their transaction through email, net and mobile banking. So,
we can say that electronic data is very widely using in today’s
In branches silk bank limited is using their personal software
called UNI bank provide controls in the shape of daily
expectations report to the branch manager and respective staff
The exception include the following;
Transaction by un issued/loose cheques
Transaction over debit limit of user
Transaction on limit expired accounts
Transaction of access over limit in part account. Back dated
transaction in account
Transaction in restricted accounts. Reversal entries
Change in customer name address and other information

This reports are viewed by manager of the branch and area

manager which helps them in decision making .


Finance manager organizes and manages an organization's financial
portfolio. A finance manager is a professional who oversee the
preparation of financial reports as required by law and approved by the
organization's board of directors, direct investment activities, and
implement cash management strategies.


A financial manager is responsible for supervising and handling

financial reports, investment portfolios, accounting, and all kinds of
financial analysis for an organization. Additionally he oversees cash
management strategies and financial legislation and regulation. He
manages the cash flow for an organization by supervising balance
sheets, income statements, and the costs and revenue model.

The responsibilities of a financial manager also involve supplying an

efficient financial blueprint and elucidating all the financial data for an
organization, while minimizing costs and maximizing profits. The
primary objective is to generate future revenue streams for an
organization, while effectively managing the existing investments.

Financial manager responsibilities can be divided into two broad


 Managerial financial responsibilities

 Corporate financial responsibilities


Managerial finance involves assessment and appraisal for all kinds of

financial activities happening in an organization. Managerial finance
does not involve drafting and implementation of financial techniques or
strategies. Rather, its primary focus is on the regulation and
administration of the existing projects.


Corporate finance, on the other hand, delegates a task to maximize
corporate value to a financial manager. A financial manager in has to
deal in decisions involving capital investment, equity, and debt, along
with paying dividends to shareholders. In addition, a corporate finance
manager deals in decisions related to investment banking to raise capital
for the company. He achieves this by trading in securities and bonds.


Financial managers typically of banks; it is one of the most diverse of
the financial management. They have myriad responsibilities including
controller, treasurer, credit or cash management, risk management,
capital budgeting, supervising other employees, soliciting business,
directing bank investments, complying with banking laws, and
authorizing and approving loans and other business ventures.


Bank cash management services include local and cross border
payments, collections,
Information management, account services, liquidity management and
investment services for both corporate and institutional clients. Cash
management is a broad term that covers a Number of functions that help

individuals and businesses process receipts and payments in an
organized and efficient manner.

When it comes to cash collections, there are a few popular options today
that can make the Process of receiving payments from customers much
easier. Automated clearing houses make it possible to transact a business
to business cash transfer that deducts the payment from the customer
account and deposits the funds in the vendor account. Generally, this
Service is available for a fee at local banks.


1) Invest your idle cash assets
2) Plan investments and expenditures to maximize operational
3) Hold accounts payables until the latest date without taking a penalty
4) Keep inventory levels as low as possible
5) Increase the speed of collection of accounts receivables



The finance manager successfully creates credit management

framework combines core policies, by procedures and process design
with oversight and is supported by risk monitoring across the bank.
Elements of credit management framework are reviewed and updated in
order to align our long-term strategy in the field with lessons learned
through the
Bank's own experiences and international best practices also kept
compliant with the local regulations and selected international best
practices, particularly those relating to implementation of Basel-II.
Banks tend to put very strict lending limits into practice in order to
ensure that the stable profits of the business are not exceeded by the risk
of the loans.
Credit management is a term used to identify accounting functions
usually conducted under the umbrella of Accounts Receivables.

Essentially, this collection of processes involves qualifying the
extension of credit to a customer, monitors the reception and logging of
payments on outstanding invoices, the initiation of collection
procedures, and the resolution disputes or queries regarding charges on
a customer invoice. When functioning efficiently, credit management
serves as an excellent way for the business to remain financially stable.
The process of credit management begins with accurately assessing the
credit-worthiness of the customer base. This is particularly important if
the company chooses to extend some type of credit line or revolving
credit to certain customers. Proper credit management calls for setting
specific criteria that a customer must meet before receiving this type of
credit arrangement. As part of the evaluation process, credit
management also calls for determining the total credit line that will be
extended to a given customer.
Financial Institutions that have a diversified portfolio may be more
likely to survive a crashing market. Credit risk management is a
complicated that often requires excellent professional expertise. Excel
is a software product used to analyze and visualize data. Credit risk
management departments in banks large and small utilize Excel
spreadsheets to organize the tens of thousands of pieces of their clients'
risk information profiles into manageable and actionable data items.
Chief financial officers (CFO) direct the organization’s financial goals,
objectives, and budgets. They oversee the investment of funds and
manage associated risks, supervise cash management activities, execute
capital-raising strategies to support a firm’s expansion, and deal with
mergers and acquisitions.
As the Chief Financial Officer (CFO) of bank, he is responsible to the
company’s Board of Directors for all accounting and financial matters.
He must establish company-wide objectives, policies, procedures,
processes, programs, and practices to assure the company of a
continuously sound financial accounting structure.


The Top Ten Responsibilities for the CFO:

1. Cash Flow
2. Company Liabilities
3. Company Performance
4. Department Supervision
5. Budgeting and Expense Control
6. Financial Relationships
7. Finance or Raising Capital

8. Financial Obligations
9. Record Control
10. Shareholder Relations


As a CFO, his job is to control the cash flow position throughout the
company, understand the sources and uses of cash, and maintain the
integrity of funds, securities and other valuable documents. You receive,
have custody of, and disburse the company’s monies and securities.
CFO responsibility includes the authority to establish accounting
policies and procedures for credit and collections, purchasing, payment
of bills, and other financial obligations. Cash is king and the flow of
cash, or cash flow, is the most important job a CFO has in any bank.


After cash flow, the CFO must understand all of the company’s
liabilities. A company has many legal contracts, statutory & tax
obligations, hidden liabilities in the form of contingencies, leases, or
insurance summaries, and expectations from loan covenants and/or the
board of directors.


The CFO must understand the company business model for generating
customer value and translate the operational metrics into measures for
performance. The CFO is the bank scorekeeper using tools like the
balanced scorecard, dashboards, and financial statement ratio analysis
to communicate both the company’s expected and actual financial


In a small organization, the CFO is the super visor of Accounting,

Finance, HR, and IT. In a larger company, the CFO may only be
responsible for the Accounting and Finance functions. Either way, the

CFO supports the company’s accounting and financial functions using
job descriptions, policies, and procedures.


Budgets are a fact of life, and the CFO is responsible for overseeing the
budget process, collecting the inputs, and comparing the company’s
actual performance with estimates (the budget). It is an ugly process
that falls within the CFO area of control.


As a CFO, you establish and maintain lines of communication with

investment bankers, financial analysts, and shareholders in conjunction
with the President. You administer banking arrangements and loan
agreements and maintain adequate sources for the banks current
borrowings from commercial banks and other lending institutions. In
addition, you invest the banks funds and administer incentive stock
option plans.


Finance is one of the key roles of the Chief Financial Officer. The CFO
will establish and execute programs for the provision of capital required
by the company, including negotiating the procurement of debt and
equity capital and maintaining the required financial arrangements. As
the CFO, coordinate the long-range plans of the company, assess the
financial requirements implicit in these plans, and develop alternative
ways in which financial requirements can be satisfied.


As the CFO, need to approve all agreements concerning financial

obligations, such as contracts for raw materials, IT assets, and services,
and other actions requiring a commitment of financial resources.


The CFO is responsible for the financial aspects of all company
transactions including real estate bids, contracts, and leases. The CFO
also provides insurance coverage, as required, ensures the maintenance
of appropriate financial records, prepares required financial reports,
insures audits are completed in time and statutory book closing occur.
The CFO has primary responsibility for ensuring company compliance
with financial regulations and standards.

Financial statement of Silk Bank (five years data)
Assets 2017 2016 2015 2014 2013
Current Assets
Cash and balances with treasury banks 3,120,880 3,070,067 3,223,780 3,994,136 2,525,340
Balances with other banks 151,068 190,197 128,991 613,678 923,044
Lendings to financial institutions 1,067,708 1,376,651 839,959 4,747,567 8,831,063
Total Current Assets 4,339,656 4,636,915 4,192,730 9,355,381 12,279,447
Fixed Assets
Investments - net 20,179,329 12,012,233 17,859,169 15,828,682 12,464,577
Advances - net 32,097,490 31,087,373 25,874,972 29,021,974 19,513,727
Operating fixed assets 3,720,695 3,002,450 2,367,883 2,322,371 1,541,536
Deferred tax assets - net 3,976,149 2,613,939 1,767,715 1,015,123 911,307
Other assets - net 4,351,022 2,292,358 1,598,131 1,657,318 1,037,955
Total Fixed Assets 64,324,685 51,008,353 49,467,870 49,845,468 35,469,102

Total Assets 68,664,341 55,645,268 53,660,600 59,200,849 47,748,549

Liabilities 2009 2008 2007 2006 2005

Current Liabilities
Bills payable 637,602 431,537 570,756 408,342 199,143
Borrowings 15,088,332 8,738,616 6,880,449 4,236,775 5,481,288
Deposits and other accounts 49,610,034 41,056,630 42,373,710 49,015,090 37,136,042
Sub-ordinated loan - - 650,000 650,000 650,000
Liabilities against assets subject to
finance lease 10,476 39,731 80,155 63,030 569
Deferred tax liabilities - net - - - - -
Total Current Liabilities 65,346,444 50,266,514 50,555,070 54,373,237 43,467,042
Other liabilities/long term debt 1,554,808 987,394 925,091 829,573 474,905

Total Liabilities 66,901,252 51,253,908 51,480,161 55,202,810 43,941,947

Share capital/TOS 9,003,150 9,003,150 5,001,750 3,847,500 3,847,500
Reserves 224,649 218,556 218,556 218,556 218,556
Accumulated Loss (9,030,894) (6,131,709) (4,119,537) (1,080,726) (860,072)
Surplus on revaluation of assets - net of
tax/SOR 1,566,184 1,301,363 1,079,670 1,012,709 600,618
Total Equity 1,763,089 4,391,360 2,180,439 3,998,039 3,806,602

Total Equity and Liabilities 68,664,341 55,645,268 53,660,600 59,200,849 47,748,549

Profit and Loss Account for Silk Bank (five years data)
Particulars 2017 2016 2015 2014 2013

Mark-up / return / interest earned 5,913,317 4,588,299 4,799,853 3,712,420 2,632,485

Mark-up / return / interest expensed 5,855,517 4,218,901 4,440,116 3,260,952 1,849,189
Net mark-up / interest income 57,800 369,398 359,737 451,468 783,296
Provision for diminution in the value of
investments – net 6,144 (11,668) 3,074 (56,808) 6710
Provision against loans and advances - net 2,170,738 1,663,314 3,134,651 463,988 490,471
Bad debts written off directly - 2,610 - - 729
Reversal against consumer finance (5,803) (12,163) (5,281) 915 26,778
Impairment of available for sale security 138,276 - - - -
Total Provision 2,309,355 1,642,093 3,132,444 408,095 518,649

Net mark-up / interest income after

provisions (2,251,555) (1,272,695) (2,772,707) 43,373 264,647

Non-mark-up / interest income

Fee, commission and brokerage income 327,949 188,596 369,468 305,464 275,685
Income earned as trastee to different funds - - - - -
Dividend income 27,921 27,173 44,465 59,851 41,347
Income from dealing in foreign currencies 113,733 53,343 64,312 56,907
Gain on sale of securities – net 58,640 19,536 210,855 145,177 43,975
Unrealized gain on revaluation of
investments classified as held for trading 69 - - - -
Other income – net 133,875 95,862 87,725 138,604 265,776
Total non-mark-up / interest income 662,187 384,510 776,825 706,003 626,783

Total Interest Income/Loss (1,589,368) (888,185) (1,995,882) 749,376 891,430

Non-mark-up / interest expenses

Administrative expenses 2,747,856 1,935,732 1,270,317 1,262,448 732,803
Other provision / (reversal) - net (102,246) 9,489 38,019 (202,435) 729
Other charges 17,481 849 14,737 75,700 11,300
Unrealized loss on revaluation of
investment classified as held for trading - - 1,310 5,962 -
Total non-mark-up / interest expenses 2,663,091 1,946,070 1,324,383 1,141,675 744,832

Gross Income/Loss (4,252,459) (2,834,255) (3,320,265) (392,299) 146,598

Amortization of deferred cost - - - 16,667 6,128
Extra ordinary / unusual item - - - - -
Profit/Loss before taxation (4,252,459) (2,834,255) (3,320,265) (408,966) 140,470

Taxation - Current year 8,414 16,462 35,382 - 156,100

- Prior years 34,616 - 439,351 - -
- Deferred (1,392,584) (836,449) (754,091) (105,282) (80,243)
Share of tax of associated - - - - -
Total Taxation (1,349,554) (819,987) (279,358) (105,282) 75,857

Loss after taxation (2,902,905) (2,014,268) (3,040,907) (303,684) 64,613

Accumulated loss brought forward - (6,133,805) 1,080,726 778,532
Accumulated Losses carried forward - - (4,121,633) (1,082,216) 64,613


 Branch Manager is Ayesha hameed

 In charge Relational Department is saima naz
 Accounts opening incharge faisal shahid
 Clearing head ali gillani
 Two to three security guards are present all the time.

I have worked for 6 weeks in this branch and I did different work in
different departments mainly I work in Customer Relation Department.i
learn how to deal with customers.


SILKBANK is focusing on bringing the next level of consumer banking

in Pakistan, emphasizing on its “You First” vision. SILKBANK aims
to offer products that will change the industry norms by providing
innovations, options and flexibility unmatched so far by any other bank
due to the investment made in the state-of-the-art systems at
SILKBANK. SILKBANK plans to expand the market by its vast
distribution network. SILKBANK’s products & services are being
developed keeping in view the increased level of consumer awareness
due to increased accessibility of information, and hence the demand for
better products and services with options.
Management believes that their business process reengineering
initiative supported by their customized core banking technology
platform will also help them to compete more effectively in the
changing landscape of the Pakistani banking sector. Bank’s Credit Risk
Environmental and Monitoring system which is in its final stages of
implementation is expected to assist them in more effective post
disbursement monitoring. They expect their efforts in this area to show
positive results in the coming months.

Macro-economic and political instability, going forward, will continue

to impact growth and profitability of the banking sector. Management
believes that political reconciliation will result in renewed attention to
economic management and hence improvement in the operating

Weak Aspects of Silk bank
Every organization has some area of improvement which is
normally called shortfall/weakness. These weaknesses can be
converted into strength and opportunities if these are planned
and implement properly. I also noticed some shortfall and
weaknesses in Silk bank as an internee. Some major
weaknesses are mentioned below:-

1. Slow growth in advances.

2. Banks debts are at dangerous level.
3. Lack of investment in different sector.
4. Bank’s interest income is deceasing every year.
5. Lack of proper planning and evaluation of finance
6. New product are not launching as per time
7. Lack of research and analysis for availing new
8. Bank’s performance evaluation/appraisal system is
not efficient.
9. Poor network system to connecting the network and

Innovative Products
There are lack of new and innovative products which can be
attract the customer and will effective to the banking

If we observe the employees satisfaction scheme we can observe
that the lack of satisfaction as an employee.

Technological Advancements
Silk bank has not using technological enhancement for their

Staff combination
The Branch has a good staff combination on the basis of
experience, but their training capabilities are not up to the
requirements of the fast changing banking environment.

Technical training
The technical training of the staff is negligible e.g. in case of the
absence of computer there is no alternate trained personal who
can record the daily transactions

What I found and What I Suggest to
Silk bank?

Based on the analysis of the Silk bank, it is observed that the

Bank like the other public sector industries has not been showing
up to mark performance. There is a long list of weaknesses that is
given on the previous page. Most of them are going along since
long time and that all efforts 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 prudent and strong policies.

 The undue reliance on the public sector be minimized and

ventures of private sectors should be taken as well.

 Redefining of rules, regulations and policies should be made

implemented at all costs.

 Efforts of great importance to be made for the over the counter

services of general banking making it more simple and faster
to get a better response of the customers.

 The behavior of the employee, especially on the counter has to

be strictly monitored and checked.

 The still existed bureaucratic approval system has to be

 All advances should be made by getting the maximum security
and should focus on productive work.

 Better and comprehensive long-term and short-term planning

should be made to forecast the future needs.

 There is a possibility of establishing a task force to ascertain

the effectiveness of the policies being implemented.

 The Bank should develop a comprehensive recruitment policy

to make only the competent ones to be on the job.

 There is a still a vast pool of incompetent employees that has

to right sized.

 There is a lack of promotional element in the planning and

budgetary decisions of the Bank that has to think seriously.

 All branches of the Bank should be computerized for increasing

the effectiveness and efficiency of its employees.

 Efforts should be continued to keep the powers of employees

union to the minimum, like the current situation.

 Promotions must not be delayed and should be made on time
to further increase the commitment and efficiency of the

These and many other that can make a good set of

recommendations, which have to be made possible to escape
from the threats and weaknesses and the risks in environment that
surrounds the Bank. The management do considers the policy
matter that is not

helping the Bank, but is still in practice due the absence of

prudentially regulated system to protect them and the Bank.

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

 Right sizing of the employees.

 By closing unprofitable branches.
 By introducing a merit based selection criteria.
 Promotions made conditional with qualifications.

 SILKBANK consumer operations department people are very
cooperative with sales people.
 SILKBANK offering Customized Products and services
aggressively better than its competitors
 SILKBANK target the segment like salaried person, business
people and self-employed person.
 Improved operational efficiency as to its past
 Marvelous Image and Reputation of the bank in the eyes of its
 Extensive Branch network
 85 Branches all over Pakistan
 Attractive Salaries and incentives for employees
 Personnel of SILKBANK are very well trained. Majority of
employees have many years of experience in banking sector and
are an asset for the bank.

 Is from sales department because they can move the file toward
consumer operations after long times
 No standardization in terms of branches some of the branches
are very attractive and most of the branches are not very good
like other branches.
 In some regions, urban areas of Pakistan service of SILKBANK
is not good as compared to other privatized banks
 The application time is also quite lengthy.
 SILKBANK is a step behind in using new technology as
compared to other banks
 All branches need orientation for customer dealing.
 Most of the employees are overload with the work and
promotion is also not timely.
 Most of employees are experienced and they are not able to deal
customers well, adopt new culture and above all they are unable
to use of new technology like computers.


 Bank can extend its network in other cities of Pakistan like other
4 remote cities, it would increase their sales.
 Proper orientation of employees in all branches can help them to cope
up with foreign banks.
 By bringing new technology and modern business processes will bring
the change and increase their profitability
 Call Centre services should be improved to enhance their


 Large and increasing competition

 High operating costs
 Lack of huge deposits
 Lack of consistency in government policies

PEST analysis of any organization is important factors that affect the
industry and influence the economic and the sector. PEST stands for
Political, Economic, and Socio cultural and technological factors. The
PEST analysis is a tool to analyze the forces that effect the organization
and those factors can influence the industry.

 Political
 Economical
 Socio cultural
 Technological

Government policies affect the banking sector. Sometimes looking into
the political advantage of a particular party, the Government declares
some measures to their benefits like waiver of short-term agricultural
loans, to attract the farmer’s vote. By doing so the profits of the bank
get affected. Various banks in the corporative sector are open and run
by the politicians. They exploit these banks for their benefits.
Sometimes the government appoints various chairmen of the banks.
Various polices are framed by the SBP looking at the present situation
of the country for better control over the banks.

Banking is as old as authentic history and the modern commercial
banking are traceable to ancient times; banking has existed in one form
or the other from time to time. Every year SBP declares its 6 monthly
policy and accordingly the various measures and rates are implemented
which has an impact on the banking sector. Also the Union budget
affected the banking sector to boost the economy by giving certain
concessions or facilities.
If in the Budget savings are encouraged, then more deposits will be
attracted towards the banks and in turn they can lend more, the money

to the agricultural sector and industrial sector, therefore, booming the
economy. If the FDI limits are relaxed, then more FDI are brought in
banking channels, like GDP, Low Interest Rates, Inflation Rates,
savings accounts, and agriculture credit.


Socio culture factors also affect the business. They show in which
people behave in country. Socio culture factors also affect the business.
Socio-cultural factors like taboos, customs, traditions, tastes,
preferences, buying and consumption habit of people, their language,
beliefs and values affect the business. Banking industry is also operates
under this social environment and it is also effect by this..

These factor are changing continuously people’s life style, their

behaviour, consumption pattern etc. is changing and also creating
opportunities and threat for banking industry. There is some socio-
culture factors that affect banking in analyzed like: shift towards
nuclear family, change in life style, population, and literacy rate etc.

Technology plays a very important role in bank’s internal control
mechanisms as well as services offered by them. It has in fact given
new dimensions to the banks as well as services that cater to and the
banks are enthusiastically adopting new technological innovations for
devising new products and services. Like ATM, IT services & Mobile
banking, core banking solutions etc.

The banking system, as a whole, remains healthy despite the economy
going through a period of economic difficulty. The banking sector
absorbed the build-up of non-performing loans in the system while
maintaining profitability and robust balance sheets. Much of the credit
for this must go to the SBP for the policies it has pursued over the last
decade to ensure that banks are adequately capitalized and adhere to
prudent risk management. The objectives were targeted towards
customers, improved management policies, strong policy framework,
improved governance structure, strategic investment initiatives and
implementation of cost effective measure across bank. The group
structure of the banking dividedly worked hard in achieving the
milestones under continuous monitoring and supervision of the senior
management and Board. The bank displayed extraordinary results in
both financial and non-financial terms.


1.Ayesha Hameed, Manager, Silk Bank Liberty Branch Lahore

2. Adeel Manzoor, Operation Manager, Silk Bank Liberty Branch


3.Faisal Shahid,Relationship Manager, Silk Bank Liberty Branch


4.Saima Naz, Customer Relationship fficer, Silk Bank Liberty

Branch Lahore

5.Silk Bank Annual Report 2015.

6.Silk Bank Annual Report 2016.

7.Silk Bank Annual Report 2017.