INTERNSHIP REPORT

Submitted By:
Syed Harris Laeeque harris_pk@hotmail.com 01-211082-129 BBA VII C

Internship Supervisor:
Nadeem Qamar Kiani Branch Operation Manager 0333-5293980 nadeemqamar@silkbank.com.pk

Executive Summary

Contents
Executive Summary ........................................................................................................................ 3 Company Overview ........................................................................................................................ 4 History ......................................................................................................................................... 4 Vision .......................................................................................................................................... 4 Mission ........................................................................................................................................ 4 Values .......................................................................................................................................... 4 Customers .................................................................................................................................... 4 Shareholders ................................................................................................................................ 4 Staff ............................................................................................................................................. 4 Social Responsibility ................................................................................................................... 4 Maintaining Confidentiality ........................................................................................................ 5 Statement of Ethics and Business Practices ................................................................................ 5 Risk Management ........................................................................................................................ 5 Why SILK? ................................................................................................................................. 5 Products ....................................................................................................................................... 5 Competitors ................................................................................................................................. 6 Market Share ............................................................................................................................... 6 Position and Description of Duties ................................................................................................. 7 Account opening and deposits..................................................................................................... 7 Remittances and billing ............................................................................................................... 7 Customer Services ....................................................................................................................... 8 Clearing ....................................................................................................................................... 8 Organizational/Departmental/Branch Analysis .............................................................................. 9 Strenghts ...................................................................................................................................... 9 Opportunities ............................................................................................................................. 10 Threats ....................................................................................................................................... 11 Weaknesses ............................................................................................................................... 12 Identification Of The Main Problems ....................................................................................... 13 Conclusion And Recommendations .............................................................................................. 14 Learning Outcomes ....................................................................................................................... 16 References/Bibliography............................................................................................................... 19 Annexure ....................................................................................................................................... 20

Executive Summary

Executive Summary
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. There are several chapters in this report. In those chapters, I have given a detailed analysis of the organization (history and basic company overview) and all the financial, technical, managerial and strategic aspects have been evaluated to analyze the current position of the organization. Along with it, the internal environment and external environment of the organization, identification of main problems have been discussed and the recommendations for the improvement have been made wherever required. In the end the learning and experiences section consists of all the policies, processes, practices and procedures, which I have undergone through and learned during my internship program. In the annexure I have attached by internship completion certificate, my most recent transcript and the employee assessment form. During my internship program, I mainly worked with the following departments: Account opening and deposits, Remittances and billing, Clearing and Customer Services. The internship report which is in your hands is the collection of my observation and experience during the internship. This report also contains my perceptions about the employees satisfaction, motivation level and the working environment of the organization. I have tried to choose suitable words to lighten the subject of this report. An important requirement of this report is that it should be comprehensive and written in good style. I have tried my level best to make the style of this report as good, as possible. The source of information for the preparation of this report includes the written notes, extract from the banking literature, and answers to my questions by concerned officials of Silk Bank. I have tried my level best to follow the internship report format which was made available to us. I am sure that this report will provide you a complete and clear image of organization; and also hope that this report will help in understanding various aspects and features of Silk Bank to all those who want to get precise information and banking procedures adopted in the banking.

Company Overview

Company Overview
History:
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 Silkbank 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.

Vision: Benchmark of Excellence in premier banking Mission: To be the Leader in premier banking, trusted by customers for accessibility,
service & innovation; be an employer of choice creating value for all stakeholders.

Values: 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.

Customers: We operate as customer oriented Bank and serve our customers with the
highest standard of skill and service, In dealing with our customers, we comply with legal, statutory and regulatory requirements. We ensure transparency in operations.

Shareholders: We strive to maximize the value for our shareholders and minimize the risk
of dilution in the value of shareholders through adequate risk management.

Staff: Our staff observes a high standard of integrity and demonstrates befitting conduct and
behavior. In performing their duties, our staff shows sense of responsibility and team spirit. Concerted efforts are made to promote congenial corporate culture in the Bank.

Social Responsibility: We recognize our wider social responsibility in terms of the

contribution we can make to the well being of the communities in which we operate. We do not make donations to or extend any financing to or take any exposure towards any political parties.

Company Overview

Maintaining Confidentiality: We attach great importance to safeguarding the

confidentiality of data concerning the its customers and other business relationships. We do not disclose information about our customers to third parties without the customers consent unless there is a clear legal or regulatory obligation to do so.

Statement of Ethics and Business Practices: The code of ethics established by

Silkbank Limited sets forth the guiding principles through which we operate and conduct our daily business with our shareholders, customers, vendors and with other group companies. These principles also apply to the officers and employees of the Bank.

Risk Management: We have designed and placed a proper system to identify, measure
and control the material risks.

Why SILK?
Inspiration for the name Silkbank comes from the Silk Route - a trade corridor connecting Asia to Europe and the rest of the world. Silk, known for its distinctive properties and characteristics, symbolizes Silkbanks brand beliefs. 1. Premium & Upscale: Silk is known for class and premium quality. Silkbank is positioned as an upscale bank providing its customers with premium banking experience. 2. Talent & Innovation: Silk embodies talent and timeless innovation. Silkbank promises its customers innovative products delivered through talented staff. 3. Strong & Reliable: Silk is amongst the strongest fibers known to mankind. Silkbank derives its strength from its strong international institutional sponsors giving it credibility and reliability. 4. Dependable: Silk through the times has held its value. Silkbank driven by a team of professionals provides an optimal experience that you can depend on.

Products
Insurance Products Roshan Mustakbil, Sunehra Kal, Mehfooz Har Pal and Silk Health Plan.

Company Overview

Technology Products VISA Debit Card, Mobile Banking, E Statements, SMS Alert, Silkbank-Direct, Silk Fauree Transfer and Inter-Bank Funds Transfer.

Competitors
KASB Bank Ltd, Allied Bank Limited, Summit Bank, Askari Commercial Bank, Barclays Bank Pakistan, Bank Alfalah, Bank AL Habib, CitiBank Pakistan, Faysal Bank, First Women Bank, HSBC Pakistan, Habib Bank Limited, Habib Metropolitan Bank, Habib Bank AG Zurich, JS Bank, MCB Bank Limited, MyBank, NIB Bank Pakistan, Royal Bank of Scotland Pakistan, Standard Chartered Bank Pakistan, Soneri Bank, United Bank Limited, National bank of Pakistan.

Market Share

40% 35% 30% Market Share 25% 20% 15% 10% 5% 0% National Bank of Pakistan 17% Habib Bank Ltd 16% United Bank Ltd 12% Allied Bank Ltd 8% Bank AlFallah Ltd 7%

Silkbank 2%

Others 38%

Market Share

Note: Company Overview is taken from the official website of Silkbank and its 2009 annual report. Check references for further information (1)

Position and Description of Duties

Position and Description of Duties

1. Account opening and deposits
In this department, I performed the duty of opening accounts for customers. A person who wishes to open an account with the bank had to fill an account opening form obtained from any branch of Silkbank. My duty was to: Interview customers in order to obtain information needed for opening accounts. To check that either the person has attached all the required documents, Compile information about new accounts, enter account information into computers, and file related forms or other documents. Moreover I had to check that: The Clients permanent and residential address was correct; his/her ID card was not expired; he/she had signed on the right places; and he/she had understood the terms & conditions

2. Remittances and billing

Main functions of the department are: Outward money transfer, Inward money transfer and Issuance of other negotiable instruments (like Pay Order, Demand Draft, Pay Slip) In this department, my duty was to check: the person had written the correct amount of the draft, the payees name the place of payment it was signed

In this department I learned that how the transfer of money from one branch to another branch takes place. In this department I got the opportunity to oversee the following jobs: Issuance of Demand draft and their Computer feeding. Responsibility of DD Advice and its Payment. Issuance of Telegraphic Transfers and their feeding in Computer.

Position and Description of Duties

3. Customer Services
In this department my duty was: Attend to customer questions, complaints and concerns immediately, and facilitate satisfactory resolution. Acknowledge and appropriately greet and assist every customer in a timely manner. Provide them all sorts of information that they require or ask for; and help them. Manage telephone calls professionally, efficiently and with good communication skills. Refer customers to appropriate bank personnel in order to meet their financial needs.

4. Clearing
In this department, my duty was to check: The name of the branch appears on its face where it is drawn. It should not stale or post dated or without date. Amount in words and figures is not different. Signature of the drawer appears on the face of the instrument. There should be no material alteration, if so, it should be properly authenticated.

Organizational/Departmental/Branch Analysis

Organizational/Departmental/Branch Analysis
SWOT analysis is an acronym that stands for Strengths, Weaknesses, Opportunity and Threats. A small survey was conducted by asking some of the bank employees to do a SWOT analysis of the bank in light of their experience in the banking field. My analysis, consolidated with theirs', is given below:

1. STRENGHTS
Electronic/Online Banking The revolution in the banking in the form of electronic/online banking operations have opened avenues of excellent, efficient and quick services saving the time and costs of the customers and fortunately Silkbank is among those few banks who are already reaping the benefits of electronic/online transactions. Advanced Infrastructure: Branches of Silkbank are well equipped with advanced technology to provide the customers with taster banking services. All the computerized machines are located in suitable manner & are very useful to the customers & staff of the bank. Friendly Staff: The staff of Silkbank in all branches is very friendly & help the customers in all cases. They provide faster services along with bonding & personal relationship with the customers. ATM Another strength is the compatibility of Silkbank ATM card with ATM machines of various other banks. So even though they, at present do not have a large network of ATM outlets they are able to work with this through making the card operable through other bank ATM machines. Conducive Environment The management of the bank is very much concerned with the development of and improvement of the working environment. The bank has state of the art and purpose built branches where all the modern technologies are provided to get the efficiency of the workforce and the customer satisfaction.

Organizational/Departmental/Branch Analysis

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2. OPPORTUNITIES
Increase in percentage of Returns on increase The bank should provide higher returns on deposits in comparison of the present situation. This will also upto large extent help the bank earn profits & popularity. Recruit professionally guided students Bank & Insurance is a special non-aid course where the students specialize in the functioning & services of the bank & also are knowledge about various tax policies. The bank can recruit these students through tie-ups with colleges. Such students will surely prove as an asset to the bank. Associate with social cause The bank can also associate itself with social causes like providing relief aid patients, funding towards natural calamities. But this falls in the 4th quadrant so the bank should neglect it. Growing Trend of Islamic Banking There is a very good growth trend in the Islamic banking in the country and in the world as well. Silkbank can have the advantage of having full fledged Islamic Banking network and the growth in this particular field can be very fruitful for the bank. Use Media for Promotion One of the most pressing needs of the time is to advertise Silk bank in the electronic media. Silk bank has not, till date, employed advertisement in electronic media as a full fledge marketing tool. I think it is high time that Silk bank does this. Bank has a lot of products and services for its customers, even more than other commercial banks, but it fails to grab market share of these products because of lack of proper marketing. Western Union Facility Silkbank does not has the facility of Western union. In this particular scheme money is transfer in Pakistan from abroad. This is the fastest way to money transfer. Silkbank can generate more revenues and increase its customer base by having Western Union facility in its branches.

Organizational/Departmental/Branch Analysis

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3. EXTERNAL THREATS / CHALLENGES

Competition The bank is facing threats with the emergence of new competitors especially in terms of foreign banks. These foreign banks are equipped with heavy financial power with excellent and innovative ways of promoting and performing their services. The bank has to take initiative in this regard or will find itself far back in competition. Net Services Silkbank provides all kind of services on-line. There can be easy access to the e-mail ids of the customers through wrong people. The confidential information of the customers can be leaked easily through the e-mail ids. Decentralized Management Each branch manager is given the authority of taking decisions in their respective branches. The decisions made by different managers are diverse and any one wrong decision can laid to heavy losses to the bank. No Proper Facilities To Uneducated customers Silkbank provides all services through electronic computerized machines. This creates problems to the less educated people. But this threat falls in the 4th quadrant so its negligible. The company can avoid this threat. Recession and downsizing The bank is currently acting upon the policy of downsizing which threaten the environment of the bank Employees feel insecurity in doing their jobs and work, hence affecting the overall performance of employees negatively Political Pressures The ongoing shift in power in political arena in the country affects the performance of the bank. The bank often has to forward loans to politically powerful persons who create a sense of insecurity and demoralization in the customer as well as employees.

Organizational/Departmental/Branch Analysis

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4. WEAKNESSES
Lack of Advertising One of the major weaknesses of Silkbank is its very low degree of advertisement, there is hardly any ad of it in newspapers or at television, and even there is no single billboard of it on the roadsides, so a layman is not much familiar about its name Drainage Problem During the rainy days the Namaz room and lunch room is filled with water, and it creates difficulty for employees; as well as the main entrance of the bank looks very chaotic and contaminated, as employees start to drain out the water after rain, which does not leave good impression on clients Not Adequate Lunch Facility There is no good facility of lunch in the bank, and the lunchroom is also not so spacious, all the employees cannot be settled at the same time. The microwave oven in the kitchen is often out of order; which creates problem for the employees

Small Space In the commercial market branch of Silkbank, I found the problem of space, whenever there is rush of clients, the bank is overloaded and looks like a fish market, some clients have to stand and wait for a chair/ their turn.

Staff shortage: There is also weak point for Silkbank that staff is very short and more staff is required to meet the needs of the branch work. They usually take help from internees

High Employees Turnover The job satisfaction level of the employee is very low resulting in high turnover which is bad for any organization as there are huge monetary and non-monetary costs involved in the fresh recruitments.

Maintenance of Old Accounts One weakness of Silkbank is that they do not do much effort to maintain their old accounts. They only look for new accounts to achieve their pre-set target of the month, and they do not pay attention to the complaints of old especially relatively small account holders.

Organizational/Departmental/Branch Analysis

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Identification of the Main Problems

During my internship at Silkbank, I had a number of different experiences. After spending six full weeks at the bank; I am able to analyze almost all major areas of working of the bank Bellow listed are some problems that I saw in the branch during my internship period: Inexperienced workforce As the majority of the workforce consists of young professional, they lack in their experience. And sometimes lack of experience becomes a hurdle while serving to the customers. It is the point where they feel difficulty while competing the other bank, which have a very experienced workforce. Research and Development Department SILKBANK operates as progressive and adaptive organization maintaining dynamism and flexibility in all facets of its operations but in this era of stiff competition it is not placing enough importance on the R&D department to consider launching new devise new products, services and schemes to attract the customers. Over work Load on Employees It was observed in the branch that as compared to huge business the bank is dealing in, the no. of employees is lesser and thus there is an increased workload on the employees. Due to this the efficiency of the employees is reduced. High Turnover The Commercial Market, Satellite Town branch of Silkbank is facing high turnover rate since the start. There are only 15 employees in the branch; and every year about 4 to 5 employees leave the organization. Weak Marketing Efforts The bank does not promote its corporate image, services, etc on a competitive way. Hence lacks far behind in marketing effort. A need for aggressive marketing in there in the era marketing in now becoming a part of every organization.

Conclusion and Recommendations

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Conclusion and Recommendations

Here I am giving some suggestions, which in my view can add some input for efficiency and better performance of Silkbank as an organization in general and City branch in particular. The recommendations are as follows: Performance Appraisal: The manager should strictly monitor the performance of every staff member. All of them should be awarded according to their performance and result in the shape of bonuses to motivated and incite them to work more efficiently. Transfer and Job Rotation: Transfer and Job Rotation are not properly carried out. Some of the employees are continually serving at the same post. They are not even rotated at the same branch. Therefore it is recommended that evenly rotation of every employee should take place after every three years in different branches of the bank. Need of Qualified Staff: Required, qualified staff should be provided to branch in order to improve the functioning of the branch. Especially a telephone operator should be appointed. Utility Bill Charges: Bank gets Rs. 2 to 3 to processes a utility bill, and it is very tire, tough and hard job despite this working resulting in a loss to then Rs 3 to5 per transaction. These charges should be increased to RS 10 per bill to enable the branch to cover their handling costs and make some profit. Clean Loans: Clean loan or clean overdraft is the credit facility extended to the customers to the customers without any security. These types of small term loans should not be extended to anybody, because sometime these loans are provided to blue-eyed people of the management and they become a part of bad debts. Needs to be Flexible in credit Policy: As mentioned earlier, Silkbank is very conservative in advances and loans policy. It reduces the investment opportunities. Also loans should be given to the small

Conclusion and Recommendations

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businessmen and the agriculture sector at the low markup rate. It should adopt flexible credit policy while giving credit to the agriculture sector. Improper Distribution of Work: During my internship I observed that there was no proper distribution of work in the bank. I saw that some of the employee worked like ants other sat idle starting here and there. So this created a lot of over work situation for while relaxation for other.

Attracting Multi National Organizations: Silk bank should evolve a very serious management policy to attract multi national corporations as its clients. This action, if actualized, would not only prove to be highly profit generating, but it would also contribute a lot towards.

Advertisement in Electronic Media: Silk bank needs to use more marketing channels to create awareness regarding products and services. In the presence of intense competition Silk bank has to realize the importance of marketing.

Learning Outcomes

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Learning Outcomes
This section of report answers the following two questions: 1. What was accomplished through the affiliation? 2. How efficiently did you apply the theoretical knowledge gleaned from your courses to the practical situations confronted during internship? Some of the important skills, which I used and learned during my internship period, are described below: Time Management Skills: During my internship period I have learnt punctuality and the significance of time in an organization. I have realized that time management is an important element of work. My practical learning has taught me to prioritize and organize my work according to schedule that enabled me to complete my tasks in the allotted time. I studied about time management in some chapters of different courses in BBA. Office Working Skills: I had to maintain vouchers, registers, perform some other documentation, as well as work on the system. Thus I learned manual as well as the system office working skills. I studied Software Application in Business (SAB) - a course in BBA which provides you great deal of information about how to deal, handle and work with the MS Office and other popular softwares. During my internship I got many chances to apply the concepts I learned in SAB. Human Skills: I learnt the human skills in true manner. Human skills associated with an employees ability to work well with others both as a member of a group as well as individual leader who gets things done through others. I have been studying about the human skills since 1st semester of BBA. I have studied Organizational Behavior, Management, and Human Resources Management etc which provide students great deal of information about how to work with others and how to manage employees. Self Control: Our ability to exercise control over our own behavior by setting standards and providing consequences for our own actions refers to self control. As an internee this skill is really important because an internee does not have much of authority.

Learning Outcomes

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Co-ordination: Co-ordination means the smooth flow of work that must be carried on consistently and systematically without any breakage. In a corporate environment like banking there is need for integration making co-ordination an essential environment. As an internee it is necessary to co-ordinate well with supervisors and co-workers.

Better Communication Skills: During my BBA I have attended courses on communication in first 3 semesters and was taught how to communicate effectively with others. This was my first hand experience of communicating with the manager, junior officers and others and to socialize myself among those professionals. This experience augmented my communication skills and gave me the confidence of communicating with professional people.

Life/Survival in a Corporation: I have studied courses like management and organizational theory and behavior in BBA which tell us about the life in a corporation. OTB and Mgmt is study and careful application of knowledge about how people act within organizations. Topics such as change, leadership, teams and behavior are just a few. It is a systematic study of the behavior of individuals and groups within an organization. While doing internship in Silkbank, I got a chance to implement the concepts I learnt in the above mentioned courses.

How was this internship destined to impact your career advancement?

Well, my internship experience in Silkbank is destined to impact my career advancement. Doing BBA was a compulsion in my life, as I had no other option. I did my FSc in pre medical but couldnt score well enough to get admission in a reputed medical college. But once I started my BBA, I was determined to land up in a corporate job one day. I chose Finance as majors because I wanted to work in the banking industry. While doing BBA, I always used to overestimate my own skills and capabilities; and underestimate the level of competition in the job market. I always thought I love finance and baking. But after doing an internship in bank, I realized that I can not work in the banking industry for my entire life. Banking industry is not my cup of tea. I found the working of a bank very dull, boring and stressful. Banking job plays no heed to innovation and creativity. There was no work-life balance for the bank employees. Normal banking hours are 9 to 5, but the employees have to work 8:30 to 8. There is a lot of

Learning Outcomes

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competition in the banking industry. All the bank sees in a candidate is his reference and experience. Without and reference, you do not even get an interview call. The freshmen like BBAs, MBAs etc get very low starting salary, and the salary level usually remains the same for some years. Fresh graduates get an average Rs 15000 salary and MBAs get about Rs 25000; out of which a considerable portion of salary is deducted for tax and gratuity etc. So, after doing my internship, I have decided I will never work in a bank or any other corporate organization. Now I want to become a teacher - a lecturer/assistant professor in a university. I plan to do M. Phil (finance) after BBA. After doing M. Phil I will become a Teaching Assistant (TA) in a university and in the meanwhile I will start PhD (finance). I have made my mind to become a teacher and excel in that field.

3. The facets of your responsibilities that you liked/disliked and why?

I Liked: I liked working in the customer service department. I liked interacting with different clients, guiding them in filling forms, answering telephone calls and referring clients to appropriate office personnel. I also liked working in the account opening and deposit department. This department and the customer service one were relatively easier departments to work in. In account opening and deposits, the work was easy and simple. I just have to interview the clients and compile the related information about the new accounts and clients.

I Disliked: I disliked working in the Remittance & Billing and clearing department. Both these departments were very depending and stressful. At the same time working in these two departments was monotonous, dull and depressing. I didnt like the paper work done in these departments. In clearing department I have to check several things on the forms and other papers. A single mistake in checking would lead to a big problem. Similarly in R&B, I made many mistakes while working with my seniors in outward and inward money transfer.

References/Bibliography

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References/Bibliography

1. Silk Bank (2011) Company Overview [Online], Available: http://www.silkbank.com.pk/ [24 Aug 2008]

2. Silk Bank (2011) Annual Report 2009 [Online], Available: www.silkbank.com.pk/docs/annual%20report%20final.pdf [17 Jan 2010]

Annexure

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Annexure
1. Transcript 2. Internship Certificate 3. Employee Assessment Form