Silk Bank

Ltd.

Intership Report
On
Silk Bank
Ltd.

Amna Arif
BBA 2nd year

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Department of Business Administration

PREFACE
It is the requirement of the BBA course.
That all students of BBA have to spend six weeks in any
organization to get practical exposure and to get familiarized
with the way to live in the organizational environment which is
dramatically different from the educational environment. That
two month period called Intership Period, if spent properly and
sincerely, enables the students to be more confident, more
knowledgeable, more responsible and above all more
committed to its work in the practical field. I have also been
assigned to do intership of Six weeks period in SILK BANK
KALMA CHOWK branch. It has enable me to understand the
practical scenario and sharpen our decision making power and
utilizing the resources in an effective manner, so that our
resources generate maximum profit. In preparing this report, I
have put all of my best efforts and tried my level best to give
maximum knowledge. Despite of my all the coherent efforts, I
do believe that there will always be a room for improvement in
the efforts of learner like me.

Amna Arif
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2016-LSC-220
“ACKNOWLEDGEMENT”

All praises to almighty Allah and our holy prophet

Muhammad PBUH who gave me the courage and patience
for completion of this final report.
I wish to acknowledge my gratitude to my inspiring
Teachers for their endless their persistence, support and
encouragement, and for providing me a lifetime opportunity
to work with Silk Bank. I am also very thankful to Silk Bank
Ltd. and Branch Manager Mr.Mufassar Goraya who gave
me opportunity to work with experienced person in their
organization. I am also thankful to my parents, family and
friends that continually offered encouraging support… … …

Amna Arif
2016-LSC-220

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CONTENTS
Executive Summary ………………………………………………………. 11

Introduction of Sector …………………………………………………… 14

History ……….….……………………………………………………….. 20

Nature of Organization …………………………………………………. 21

Vision ….…………………………………………………………………. 22

Mission …………………………………………………………………….22

Core Values …………………………………………………………………… 23

Customer Focus .…………..…………………………………………. 23

Integerity ………………………..………………………………………. 23

Team Work ………………………….…………………………………… 23

Creativity …………………………………..………………..…………… 23

Meritocracy …………………………………….…………..…………... 23

Humility ………………………………………………………….………… 24

Developments …………………………………………..……………… 24

Head Office …………………………………………………………..………… 25

Circle Office …………………………………………………………….……… 27

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Management of Organization ………………………………..………. 27

Management of Bank …………..……………………………….… 27

Chief Financial Officer ………………………………………………. 28

Company Secretary ………………………..…………………………. 28

Audit Committee …………………………..………………………….. 28

Risk Committee ……………..…………..…………………………….. 29

IT Committee …………………..……………………………………….. 29

Human Resource Committee ..………………………………….. 29

Auditor …………..…………………………………………………………. 29

Legal Advisor ..…………………………………………………………… 30

Organization Structure …………...……………………………………….. 30

Coorporate Banking …….……..….……………………………….. 31

Commercial Banking ……………..…………………………………. 31

Consumer Bank ……………………..…………………………………. 32

Information about Branch ……..………..………………………………… 34

Management of the Branch ………………………………………. 34

Deposits …………………….………………………………………………………. 34

Number of Accounts ……………………..…………………………………… 35

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Current Account ………….…………………………………………….. 35

Saving Account ………………………..………………………………… 35

Term Deposit ………………………….…………………………………. 35

Remittance ………………………………………………………………… 35

Rate of Interest ……..………..……………………………...………… 35

General Banking ……………………….………………………………………… 36

Department where Intership was carried out .…………………….. 36

Operations Department ……….…………….………………..…………….. 37

Types of Accounts …………..……..……………………………………………. 37

Single ……………………………….….………………………………………… 38

Joint ………………………….…………….…………………………………….. 38

Partnership ………………………..…………………………………………. 38

Private Limited …..…………..…………………………………………….. 39

Public Limited …………….………………………………………………….. 39

Technology Product ……………………………………………………………… 40

Visa Debit Card ………………………………………………………………. 40

Mobile Banking ………………………………………………………………. 40

E-Statement …………………………………………………………………… 41

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SMS Alert ……………………………………………………………………….. 41

Silk Bank-Direct ………………………………………………………………. 42

Nature of Account ……………….………………………………………………… 43

Current Account ………………..………………………………………………….. 43

All-in-One Account ………..…….…………………………………………. 43

Business Value Account ..………….….………………………………….. 44

Salary Premium Account …………………..……………………………… 44

Basic Banking Account ………………………….………………………….. 45

Online Express ………..………………………………………………………… 45

Saving Account …………………………………………………………………….. 46

Munafa Rozana ……..………………………………………………………… 46

PLS Saving Account ………………...………………………………………. 46

Super Saver Account ……….………….………………………………….. 47

Term Deposits ……………………….………………………………………………. 47

Term Deposit ……………….…………….…………………………………. 47

Mahana Munafa ……….………………………………………………….. 47

Salana Munafa ……….…………………………………………………….. 48

Personal Loan …………..……………………………….…………………………... 48

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Silk Bank Ready Line ……..……………….……………………………………….. 49

Bancassurance Schemes …….…………………………………………………… 50

Silk Educational Takafull ………….……….……………………............. 51

Silk Secure Takafull ……………….……………….…………………......... 52

Silk Health Line ………………….……………………….……………………. 52

Silk Retirement Plan ……….…………………………….…………………. 53

Credit Cards ………………………………………….…………….…………………. 53

Account Opening Form ……………………………………..…………………… 54

Introduction …………………….……………………..……………………….. 55

Stamping ……………………………..…………….…………………………….. 55

Account Number …………………….…….………………………………….. 56

Knowing Your Customer ……………..……………………………………… 56

Approval ………………………….……….……………………………………… 56

Send Form to Head Office ….…….……………………………………… 56

Letter of Thanks ………………..…………………………………………….. 56

Issuance of a Cheque Book …….…….………………………………….. 57

Closing of an Account …………………….………………………………… 57

Clearing Department ………………………………………………………........... 58

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Meaning of Clearing ……….….……………….………………………….. 58

Clearing House ……………………..………………………………………… 59

NIFT ………………………………………………………………………………… 59

Learning in Clearing Department ….……………….………………… 60

Clearing Procedure ………………………….……….……………………… 61

Checking Of Cheques ………………………….…………….……………… 61

Business Volume ……………………………………………………………………….. 62

Weakness of Silk Bank ……………………………………………………………….. 62

Weak Aspects of Silk Bank ……………………………………………….. 62

Innovative Products ………………………………………………………… 63

Incentives ………………………………………………………………………… 64

Technological Advancements ………………………………………….. 64

Staff Combination ………………..…………………………………………. 64

Technical Training ………………..……………………………………………. 64

Suggestions & Recommendations ………………………………………………. 64

Advertising ……………………………………………………………………….. 65

Increased ATM’S Locations ………………………………………………… 65

Increase Services ……………………………………………………………….. 65

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Management of Time ………………………………………………………… 66

Growth Scope for Employees …………………………………………….. 66

Banking Professionals ………………………………………………………… 66

Attracts Customers …………………………………………………………….. 67

Job Rotation & Promotions ………………………………………………….. 67

Communication System for Employees ………………………………… 67

What I Have Learnt in Silk Bank …………………………………………………. 68

Application of Class Room Learning …………………………………………… 69

If I Where Manager at Silk Bank …………………………………………………. 70

Conclusion …………………………………………………………………………………. 71

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“EXECUTIVE SUMMARY”

The banking structure in Pakistan comprises of the following

types, State Bank of Pakistan, Commercial Bank of Pakistan;
Exchange Banks, Savings Banks, Cooperative Banks,
Specialized credit institutions. That State Bank of Pakistan is
the Central Bank of the country and was establised on July
01, 1948. The network of the branches now covers a very
large segment of national economy. The State Bank of
Pakistan issues the shares of these periodically. Bank
employees and other common peoples can also purchase
these shares and earn profit. Silk bank is the Public sector
financial institution. On September 15, 2001, under the
supervision of the State Bank of Pakistan (SBP), the
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institution then known as the Prudential Bank was acquired

by the management and associates of the Saudi Pak
Industrial and Agricultural Investment Company (Pvt) Ltd.
(SAPICO), to serve as an agent to the State Bank of Pakistan.
Silk bank head office is in Karachi. It has 1249 regional
branches and 18 overseas branches. Silk bank is a 52% share
owned by the Government of Pakistan (GOP). Silk bank's
total assets stood at PKR 820 billion on mid of 2009. This
included total earning assets of about PKR 268 billion with
gross loan portfolio of PKR 140 billion. The bank also has
an investment portfolio of PKR 171 billion, which
comprises treasury securities, corporate bonds, shares and
other securities. This report is based on internship in Silk
bank. It is a famous and reputed bank of Pakistan. Silk
bank maintains its position in banking sector in Pakistan.
This report is based on the activities, which are
performed in this bank. This report
contains banking services, competitive
analysis, SWOT analysis, bank tariffs and exchange
rates of Silk bank. There are also stated the activities which I
performed during my internship in the branch. In this report
I also discuss the industry analysis of banking system in

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Pakistan. During the internship I was observed the jobs task

of the employees and at the we find him a lot of problems
at the management level. So I have mentioned all the
problems from which the branch has been suffered
have given the suggestion that can they solve branch
problems? There are also mentioned the way of investment,
rates of investment, and all types of financing and loans
facilities the Silk bank provides. The problems in this
branch are also discussed. This report also intimates
about the daily reserves, which are required by the
branch to meet the need of its daily transactions. To open
an account the customer has to meet the general banking
manager with an introducer. The procedure begins with the
punching of the account opening from to the customer file
i.e. customer’s master file. Before closing any account, bank
send letter to the account holder for informing him that his
account is going to be closed. There is need an approval
from higher authority to close any account. Current deposits
are those which are payable to bank whenever demanded
by the customer. Bank does not pay any profit on current
deposits. The following are the financial produts/services of
Silk Bank, All In One Account, Assan Account, Fixed Deposits

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and others like night banking, credits cards, traveler

cheques. In remittance depatment like any other bank Silk
Bank also have instrument for transferring of money,
Telegraphic Transfer, Mail Transfer. In cash department
both deposits and withdrawals go side by side. This
department works under the accounts departments and
deals with cash deposits and payments. This departments
maintains the following sheets, books, and ledger of
account cash received voucher sheet, cash paid voucher
sheet, Paying-in-slip, Cheque book, Cash balance book. Bank
provides this facility to the people who need advance
money to meet their requirement. Party dealing with other
banks financial condition of borrower business and as a first
step credit proposal is being made. Silk Bank provides
advances, which are two types. Secured Advances,
Unsecured Advances. Silk Bank usually classified advances in
to following types Agricultural Advances, Commercial
Advances.

INTRODUCTION OF SECTOR

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The word ‘Bank’ is said to have been derived from the

words Bancus or Banque. This history of banking is traced to
as early as 2000 B.C. Banking in fact is primitive as human
society, for ever since man came to realize the importance
of money as a medium of exchange, the necessity of a
controlling or regulating agency or instituion was naturally
felt. The priests in Greece used to keep money and
valuables of the people in temples. These priests thus acted
as financial agents. The origin of banking is also traced to
early goldsmits. They used to keep strong safes for storing
the money and valuables of the people.
“A bank is a debt of its own and other peoples. They
accepts investement of the people and lends to the
needy”.
The first stage in the development of modern banking, thus
was the accepting of deposits of cash from those persons
who had surplus money with them. The goldsmiths used to
issue receipts for the money deposits with them. These
receipts began to pass from hand to hand in settlement of
tranactions because people had confidence in the integrity
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and solvency of goldsmiths. When it was found that these

receipts were fully accepted in payment of debts; then the
receipts were drawn in such a way that it entitled any
holder to claim the specified amount of money from
goldsmiths. A depositor who is to make the payment may
now get the money in cash from goldsmiths or pay over the
receipts to the creditor. These receipts were the earlier
bank notes.
The second stage in the development of banking thus was
the issue of bank notes. The goldsmiths soon discovered
that all the people who had to deposited money with them
do not come to withdraw their funds in cash. They found
that only a few persons presented the receipted for
encashment during a given period of time. They also found
that most of the money deposited with them was lying idle.
At the same time; they found that they were being
constantly requested for loan on good security. They
thought it profitable to lend at least some of the money
deposited with them to the needy persons. This proved a
profitable business for a goldsmiths. They instead of
charging safe keeping charges from the depositors began to
give them interest on the money deposited with them.
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This was the third stage in the develpoment of banking. At

the time of independence, there were 631 officers of
scheduled banks in Pakistan, of which 487 were located in
West Pakistan alone. As a new country without resources it
was very difficult for Pakistan to run its own banking system
immediately. Therefore, the experts committee
recommended that the Reserve Bank of India should
continue to function in Pakistan until 30th September 1948,
so that problems of time and demand liability, coinage
currencies, exchange etc. be settled between India and
Pakistan.
The Non-Muslims started transferring their funds and
accounts to India. By the end of June 1948 the number of
officers of scheduled banks in Pakistan declined from 631 to
225. There were 19 foreign banks with the status of small
branch officers that were engaged solely in export of crop
from Pakistan, while there were only two Pakistan
institutions, Habib Bank of Pakistan and the Australian Bank.
The customers of the bank are not satisfied with the
uncertain condition of banking. Similarly the Reserve Bank
of India was not in the favor of Government of Pakistan. The
Government of Pakistan decided to establish a full-fleged
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central bank. Consequently the Governor-general of

Pakistan Quaid-e-Azam inaugurated the State Bank of
Pakistan on July 1, 1948. Thus a landmark was made in the
history of banking when the state bank of Pakistan assumed
full control of banking and currency in Pakistan.
The banking structure in Pakistan comprises of the following
types:
 State Bank of Pakistan
 Commercial Bank of Pakistan
 Saving Banks
 Cooperative Banks
 Specializes Credit Institutions

Commercial Bank have been the most effective mobilizers of

savings and have been providing short-term requirements
of working capitas to trade, commerce and industry. Up to
December 31, 1973, there were 14 Pakistan commercial
banks that functioned all over the country and in some
foreign countries through a network of branches. All these
commercial banks were nationalized in January 1, 1947, and
were recognized and merged into the following five banks:
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 National Bank of Pakistan

 Muslim Commercial Bank Limited
 Habib Bank Limited
 United Bank Limited
 Allied Bank Limited
The State Bank of Pakistan is the Central bank of the country
and was established on July 1, 1948. The seperation of East
Pakistan and its repercussion in the form of economic
depression has caused a lot of difficulties to the banking
system in Pakistan. The network of bank branches now
covers a very large segment of national economy. The
numbers of branches have increased appreciably and there
is now on branch of bank for every 3000 heads of
population approximately. There is done reasonable growth
in deposits from the establishment of Pakistan. Besides this
growth, specialized credit and financial instituitions have
also developed over the years.
The government of Pakistan in the late 90’s introducing the
need for privatization of state owned banks and companies.
The private sector has accepted the challenge and most of
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the banks are privitized today. The State Bank of Pakistan

issues the shares of these periodically. Bank employees and
other common peoples can also purchase these shares and
earn profit. Throughout the period of banking history the
banks have been expanding rapidly and achieved the
desired goal of progress.

THE SILK BANK LIMITED

HISTORY:
Silk bank is the Public sector financial institution. On
September 15, 2001, under the supervision of the
State Bank of Pakistan (SBP), the institution then
known as the Prudential Bank was acquired by the
management and associates of the Saudi Pak Industrial
and Agricultural Investment Company (Pvt) Ltd.
(SAPICO). Silk bank head office is in Karachi. It has
1249 regional branches and 18 overseas branches.
Silk bank is a 52% share owned by the Government
of Pakistan (GOP). Silk bank's total assets stood at PKR 820

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billion on mid of 2009. This included total earning

assets of about PKR 268 billion with gross loan
portfolio of PKR 140 billion. The bank also has an
investment portfolio of PKR 171 billion, which
comprises treasury securities, corporate bonds, shares and
other securities. This report is based on internship in Silk
bank branch name. It is a famous and reputed bank of
Pakistan. Silk bank maintains its position in banking sector in
Pakistan.

“Saudi Pak Bank name changed Silk Bank”

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Nature of the Organization:

The main objective of the bank is to accept deposits and
provide loans to its customers andalso to be more efficient
in providing services. The bank maintained its commitment
tomost efficient and personalized services to its customers.
Silk bank of Pakistan introducedmany remunerative
schemes for its depositors and introduced computer
services for thefirst time in the banking history of Pakistan.
Silk bank gives advances to small, medium and big
industries, commercial establishment, agriculture,
construction companies andother needy persons. Silk bank
collects electricity gas and telephone bills from public and
over hundred branches of Silk bank limited deal in foreign
exchange were facilities are given to financial and
commercial so its ultimate objective is to receive funds from
the depositors and provides loans/credit facilities to
different sector including trade, industry and agriculture in
its most branches.

“VISION STATEM,ENT”
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“Benchmark of excellence in premium banking”.

“MISSION STATEMENT”
“To be the leader in Premium Banking; trusted by customers
for accessibilty, service and innovation. Be an employeer of
choice, creating values of all shareholders”.

“CORE VALUES”

CUSTOMERS FOCUS:
At Silk Bank, customer remains at the core of all activities.
Service Quality is our key differentiator.

INTEGRITY:
At Silk Bank, we are honest and upfront maintaining and the
highest level of personal and coporate integrity.

TEAMWORK:
Teamwork is our key strength. Our success lies in unity.

CREATIVITY:
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Out of the box thinking is the enabling factor for us to be

recognized as an innovative organization.

MERITOCRACY:
Merit remains our key primary criteria for rewarding
performance.

HUMILITY:
Humility remains at he core of all our relationships.

DEVELOPMENTS:
After privatization, the growth in every development of the
bank has been observed.
Following are some key development:
 Launching of different deposit schemes to increase
saving level.
 Increased participating on foreign trade.
 Betterment of branches and staff service level.

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Extended use of information technology which is evident

from the fact that there are 568 fully automated branches,
more than 250 online branches (intergrated networking),
140 ATMS in 25 cities nation wide and a Silk Bank
continuously innovative new produts.

“HEAD OFFICE”

Korangi Road of Karachi has same importance in

Pakistan’s economy as of the Wall Street in world economy.
The division working under Silk Bank Head office is as
follows:

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 Administration
 Credit Management
 Investment Banking
 Human Resource
 Information Technology
 Corporate Planning & Budgeting
 Finance & Treasury
 International Division
 Inspection & Audit
 Law Division
 Marketing & Development
 Trustee Division

Under the President an Executive Committee and a Credit

Committee works. All the matter of the bank join to the
board of director are presented to the executive committee
which is responsible for daily operation of the bank. The
request for credit exceeding the General Manager power is
approved by the Credit Committee. Under the area
Executive is the General Manager who is the in charge of
the Circle Office. Under the General Manager is the Zonal

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Manager and then the Branch Manager. At present, there

are 9 circles, 47 regions and 684+ branches. Before
privatization there were provincial chiefs for all the four
provinces. But this management now has abolished the
provincial officers and improved the effiency of the bank.

“CIRCLE OFFICE”
The working of circle office is to control and regulate the
functions of branches which are under its control. The
functions of circle office are to mobilize the deposits and
receive reports from branches. Circle office is like a mini
head office. Agents and correspondents of Silk Bank are in
all commercial cities of the world.
Circle office is divided in the following division:
 Credit Management
 Audit & Inspection
 Human Resource
 Marketing & Development

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“MANAGEMENT OF ORGANIZATION”

MANAGEMENT OF BANK:
Mr. Munnawar Hamid OBE Chairman
Mr. Azmat Tarin President & CEO
Mr. Khalid Aziz Mirza Director
Mr. Nasim Beg Director
Mr. Rashid Akhtar Chughtai Director
Mr. Shahzad Enver Murad Director
Mr. Tariq Iqbal Khan Director
Mr. Talha Saeed Ahmed Executive Director
Mr. Zubair Nawaz Chattha Director
Mr. Shaukat Tarin Advisor to the Chairman

CHIEF FINANCIAL OFFICER:

Mr. Khurram Khan

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COMPANY SECRETARY:
Mr. Faiz-ul-Hasan Hashmi

AUDIT COMMITTEE:
Mr. Shahzad Anvar Murad Chairman
Mr. Nasim Beg Member
Mr. Tariq Iqbal Khan Member
Mr. Wajih Zaidi Secretary

RISK COMMITTEE:
Mr. Tariq Iqbal Khan Member/ActingChairman
Mr. Shahzad Anver Murad Member
Mr. Muhammad Atif Kauser Secretary

IT COMMITTEE:
Mr. Nasim Beg Chairman
Mr. Zubair Nawaz Chattha Member
Mr. Asrar Hussain Secretary

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HUMAN RESOURCES COMMITTEE:

Mr. Khalid Aziz Mirza Chairman
Mr. Munnawar Hamid Member
Mr. Rashid Akhtar Chugtai Member
Mr. Goharulayn Afzal Acting Sectary

AUDITOR:
M/s. Grant Thornton Anjum Rehman Chartered Accountant

LEGAL ADVISOR:
Mr. Ghani Law Associates

“ORGANIZATION STRUCTURE”

As Silk Bank is a banking company listed in stock exchange

therefore it follow all the legalities which is imposed by
concerned statutes Mr. Munnawar Hamid OBE is Chairman
of the company with the term of 10 directors and 1 vice

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chairman to help in the business control and strategy

making for the company.
Operational Management of the bank is being handled by a
term of 10 professionals. This team is also headed by Mr.
Munnawar Hamid OBE. The different operational
departments are Consumer Banking & IT div; Financial &
Inter branch div; Banking Operations div; HR & Legal div;
Financial Control & Audit div; Credit management div;
Commercial Banking div; Cooporate Banking div; Treasury
Management & FX Group and lastly Special Assets
Management (SAM) Group.
For effective handling of branches, it has been categorized
into three segments with different people handling each
category.

These categories are:

 Coporate Banking
 Commercial Baking
 Consumer Banking

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COORPORATE BANKING:
These are branches which have an exposure of over Rs.100
million. Usually includes multinational & public sector
companies.

COMMERCIAL BANK:
The branches which has a credit exposure of less than
Rs.100 million but having a credit portfolio of more than
Rs.20 million (excluding staff loan).

CONSUMER BANK:
These are the branches which have exposure up to Rs.20
million and these include all the branches which are neither
coorporate nor commercial branches.

Recently the organizarional structure was re-designed as

follow:
Punjab 650
Sindh 243
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NWFP 103
Balochistan 36
Azad J. Kadhmir 14
Domestic 1046
Overseas 7
Total 1053

Furthuremore, the bank has some proposals under

consideration to open more branches in some Europen
countries and as well as in Japan & China.
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“INFORMATION ABOUT BRANCH”

I did my intership in Silk Bank Limited, Kalma Chowk Lahore
and some important information about my branch which I
observed are as follows:

MANAGEMENT OF THE BRANCH:

Branch Manager Mr. Mufassar Goraya
Accountant Mr. Asim
Operational Manager Mr. Arslan
Cashier Mr. Ali

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Peon Fahad
Security Guard ________

DEPOSITS:
The total deposits of this about 207.10 million.

NUMBER OF ACCOUNTS:
Accounts in this branch of Silk Bank are as follows:

CURRENT ACCOUNT:
Total numbers of current accounts are 1049.

SAVING ACCOUNT:
Total numbers of profit and loss accounts are 2120.

TERM DEPOSIT:
These are about to 600 accounts.

REMITTANCE:
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Total remittance of this branch is 26.22 million.

RATE OF INTEREST:
The rate of interest provided by such bank is
minimum4.45% and maximum 9%.

“GENERAL BANKING”

It is backbone of banking. It is one of the major department

of Silk Bank. It further consists of following departments:
 Operations Department
 Current Department
 Remittance Department
 Clearing Department
 Cash Department
 Accounts Department
 Technology Department

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“DEPARTMENTS WHERE INTERSHIP WAS CARRIED OUT”

 Operation Department
 Clearing Department
 Remittance Department

“OPERATIONS DEPARTMENT”
In Operations department I was under supervision of Mr.
Asim, Operational Manager. And I learnt to open account of
different types and nature which are as follows:

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TYPES OF ACCOUNTS:
 Single
 Joint
 Partnership
 Private Limited
 Public Limited

SINGLE:
Only one person can operate this account. An individual
who can fulfill the requirement of bank can open this
account. We can call it a personal or individual account. The
requirements for this type are National Identify Card
Photocopy, Minimum Deposited Balance, Account Opening
Form, Letter of Kinship etc.

JOINT:
In case of joint account applicant mentions that how much
person will operate the account. Instruction are given for
joint account such that the account shall be operated by
anyone or more. The requirement for this type are National
Identity Card Photocopy, Minimum Deposited Balance,
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Account Opening Form, Letter Kinship, Additional Signature

Form (For Joint Account), Declaration regarding the
operator of account.

PARTNERSHIP:
For partnership account, along with the application form
other requirements needs satisfied. The requirements for
this type are National Identity Card Photocopy, Minimum
Deposited Balance, Account Opening Form, Registration
certificate, agreement among partners and Commencement
of business and private registration, resolution of board of
directors, commencement of business, memorandum and
articles of association and balance sheet etc.

PRIVATE LIMITED:
Such type of account is opened in the name of the business
having private limited concern and mostly medium business
enterprises open such kind of accounts. All the board of
directors have to submit the declaration regarding the
account operator on the company pad and with the rubber
stamp with the signature of the all the members of the
board of the director. In case of any change in directors

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bank must be informed regarding that. In case funds are

borrowed by the company all the directors approval is
necessary rather not only the authorized partner who can
be the operator of the account.

PUBLIC LIMITED:
Public Limited account type of account is opened in the
name of the business having Public Limited concern and
mostly medium business enterprises open such kind of
accounts. And terms regarding board of directors are the
same as of private limited.

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

Visa Debit Card:

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With Silk Bank Debit Card get 24-hours access to cash

anytime and anywhere around the world. Silk Bank Debit
Card offers international acceptance and enables to draw
cash, direct from account anywhere, any time. In case of
stolen or lost cards, you can protect against fraudulent
transaction made on your card after you report the lost.

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

E-Statement:
E-Statement facilities
• No Hassles
• Simple Registration Process
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• Desired Frequently Options Customers can request e-

statement on a daily, monthly, quarterly, half-yearly and
annually frequency.

SMS Alert:
Silk Bank Sms Alert offer to customers the ability to stay
informed around the clock, anytime.
Once enrolled for SMS Alert, you will receive alert on
transactions you select, from the following set of option:
Banking Transaction:
• All Transactions
• Transaction of Rs.50, 000 & above
• Transaction of Rs.250, 000 & above
Internet/ATM Transaction:
• All Transactions
• Transaction of Rs.10, 00 & above

Silk Bank-Direct:

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With Silk Bank Internet banking service we can access and m

anage our accounts anywhere, any time. With Silk Bank-
Direct we can enjoy these amazing convenient internet
banking facilities:
• Balance Inquiry
• Mini Statements
• Transaction Details
• Low Balance Alerts
• Accounts Statements Requests
• Fund Transfers
• Pay Order/Demand Draft Requests
• Cheque Book Requests

NATURE OF ACCOUNTS:
 Current Account
 PLS Saving Bank Account
 Term Deposits
 Silk Bank Ready Line
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 Personal Loan
 Bancassurance

1. Current Accounts:
a. All-in-One Account:
Silk bank’s All-in-One account provides insurance for
automobiles, cell phones, vital documents, home appliances
and jewelry and on cash being snatched after withdrawal
either from the bank itself or the ATM.

b. Business Value Account:

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The Business value account is most beneficial to

businessman employed in the trading business. Through
Jubilee’s General Insurance scheme up to Rs. 10million of
the inventory and merchandise is insured. Apart from that
customers are also entitled to cheque books, pay orders,
inter-city transactions and Silk bank Visa debit cards,
completely free of cost.
c. Salary Premium Account:
The salary premium account offers a number of perks along
with your salary. Hassle free Salary processing, cash
snatching coverage and discounted auto-insurance rates are
offered with this account, along with being entitled to
cheque books, pay orders, Silk bank Visa debit cards and
inter-city transactions.
d. Basic Banking Account:
This account can be opened for a minimum of Rs. 1,000/-
and maintaining an average balance is not required. Two
debit and credit transactions each month are allowed, free
of charge.
e. Online Express:
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Through the online express account, customers can access

their accounts online and enjoy online transactions. A few of
the perks offered with this account are:
1) Online (Intercity) Transactions
2) Pay Orders & Demand Drafts
3) Cheque Collection & Return
4) Call Deposits (CDR)
5) Cheque Books
6) Safe Deposit Lockers.

2. Saving Accounts:
a. Munafa Rozana:
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This account calculates your profit at 8% per annum and

credits your account with that amount daily.
b. PLS Savings Account:
Having a Silk bank PLS Savings account enables you to
receive a profit pay out twice a year, with a monthly interest
rate of 6% on all tiers of investments. The 7 profit is
calculated on the minimum balance of the month and
customers can also avail Visa debit cards through this
account.

c. Super Saver Account:

The Super Saver account offers the highest return on
deposits, the profit is calculated on a daily product basis,
with the profit being payable every month.

3. Term Deposits:
a. Term Deposit:

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The minimum amount for a deposit is Rs. 100,000.

Customers may invest their money for a certain period of
time such as 1-2 months, 3-5 months and 6-11 months, with
interest rates being different for every amount invested and
the time it has been invested for. For term deposits
exceeding Rs. 50 million, the business heads will decide on
the rate of interest to be provided to the customer.
b. Mahana Munafa:
Through this account you can earn a maximum profit off
your balance, which is credited every month. A minimum
balance of Rs. 100,000 is required to open the account and
profit is calculated at different rates of each tier of
investment.
c. Salana Munafa:
With this account, customers receive a pay out every month
on the invested amount and the term deposit is valid for a
year.

4. Personal Loan:

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Silk Bank Personal Loan was extra cash to furnish your

home, give the best education to your child, plan a perfect
wedding.

It’s fast flexible and convenient. It is suitable for people who

have one time borrowing need and want to peace of mind
through monthly payments. This loan provides a personal
loan facility of up to Rs. 2 million. It also provides flexible
tenures of 1-5 years, no security, no collateral, top-up
facility, balance funds transfer option, Pre & Partial payment
option available.

5. Silk bank Ready Line:

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Silk bank ready line was a loan created to provide peace of

mind to its customers. This loan provides a running finance
facility of up to Rs. 2 million. It also provides free Silk bank
Visa debit cards, a credit line operable from all Silk bank
branches and ATMs, no collateral or security, no penalty or
charges on early payment, a mark-up payable on only the
amount used, and complimentary life insurance provided up
to the amount utilized.

6. Bancassurance Schemes:

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Bancassurance is a term used to describe the partnership or

relationship between a bank and an insurance company
whereby the insurance company uses the bank sales
channel in order to sell insurance products. This partnership
allows the insurance company to maintain smaller direct
sales teams as their products are sold through the bank to
bank customers by bank employees. Bank salesperson,
rather than an insurance salesperson, becomes the point of
sale point of contact for the customer. Bank staff are
advised and supported by the insurance company through
product information, marketing campaigns and sales
training. Both the bank and insurance company share the
commission.

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a. Silk Educational Takaful:

Partnered with the Dawood Family Takaful Ltd. firm, this
scheme insures a child’s educational future through
different insurance policies. This plan has been carefully
designed to comprehensively tackle educational financial
hurdles in your child’s near future.

b.Silk Secure Takaful:

The Silk Secure Takaful scheme insures people of their
financial futures with today’s uncertain economic times. By
investing this scheme, customers canaspire for a better
future, without any drastic financial fears.
c. Silk Health Line:

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The Silk Health Line scheme provides medical insurance. The

plan is designed to provide cash-less coverage in case of in-
patient hospitalization. Its aim is to provide quality health
care to patients suffering from any illnesses, or accidents.
This plan is partnered with Asia Care Health & Life Insurance
Co. Ltd.
d.Silk Retirement Plan:
The Silk Retirement Plan is partnered with EFU Life. This
scheme allows its customers to begin saving and planning
for their futures after retirement. It enables them to
maintain their standard of living, even after they stop
getting a salary.

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7. CREDIT CARDS:
Silk bank opens up great credit card deals for the people of
Pakistan while providing a one stop solution for all your
financial needs. Avail discount at various brands across
Pakistan with silk bank credit card. Save your time searching
the web. Empowers you to search and compare
comprehensive credit card discounts and offers that can
fulfill your financial needs. With silk bank credit card online,
you can check the updated rewards and discounts and apply
for them online. Silk bank opens up great air miles credit
cards deals for the people of Pakistan by providing
prominent discounts and travel perks. Engine empowers

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you to compare best Silk Bank credit card for miles that can
fulfill your financial need.

Following steps are involved in account opening:

ACCOUNT OPENING FORM:

Firstly the customer fills the account opening form and
provides all the information as provided above. I
experienced to fill this form.

INTRODUCTION:
An account is needed to be introduced. The
introduction of a current account holder is accepted for the
opening of an account.
 The introducer should be a branch customer or may
account holder of any branch of Silk Bank; however
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signature should be verified by the banker. In certain

cases, introduction from bank other than Silk Bank may
be allowed.
 Personally know accounts may be introduced by the
bank staff.
 Introduction from an account holder not personally
coming to the bank should be verified by the bank.

STAMPING:
Then it is stamped. Stamps like BAL sign verified, Sign
Admitted Stamp, Sign verified stamps etc are affixed.

ACCOUNT NUMBER:
When all the procedures are completed than the final
approval is taken from the branch manager. After obtaining
approval, an account is allotted to the customer and all the
information is entered into the computer and KYC is filled
up. Then that account number is writing on the Cheque
Book, Specimen Signature cards and account opening form.

KNOWING YOUR CUSTOMER:

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After entering information KYC is filled up. It should be

ensured that at the time of filling information in KYC, a
customer should be physically present. After this all
information is saved in system. I filled KYC from also.

APPROVAL:
This account is further approved by Manager Operations.

SEND FORM TO HEAD OFFICE:

After fulfilling all the requirements and verifying the forms
from operation manager the account opening form is sent
to Head Office Karachi and make request to issue the
printed cheque book.

LETTER OF THANKS:
Subsequent to the opening of an account, letter of thanks
should be sent under registered post or courier service to
the customer and the introducer.

ISSUANCE OF A CHEQUE BOOK:

After opening an account with the bank, the account holder
can not immediately start operating his/her account. The

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cheque book is issued, when a customer will submit a copy

of letter of acknowledgement duly signed by him, in case of
new account. And for subsequent issuance of cheque book.
He/she has to make a request once again in the name of the
bank for the issuance of cheque book and he should
mention title of account, account number, sign it properly
and mention the number of leaves requires. Normally a
cheque book having at least 25 leaves is issued but it can
also be of 50 leaves.

CLOSING OF AN ACCOUNT:
There is number of reasons of closing an account. Some are
listed below:

 If customer desires to close his account

 In case of death of one account holder
 Bankruptcy of the account holder.
 If an account contain nil balance or not up to the
requirement of rules.

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Before closing any account, bank send letter to the account

hold for informing him that his account is going to be closed.
There is need an approval from higher authority to close any
account.

“CLEARING DEPARTMENT”
In clearing department I worked under supervision of Miss
Shama. In clearing department and learned about inward
and outward clearing and I also learnt about,

MEANING OF CLEARING:
The word clearing has been derived from the word “clear”
and is defined as,
“A system by which banks exchange cheques and other
negotiable instruments drawn on each other within a
specific area and there by secure payment for their clients
through the Clearing House at specified time in an efficient
way”.

CLEARING HOUSE:
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It is a place where cheques are presented, collected from

bank branch. It is one of the services provided by NIFT acts
as a clearing house.

NIFT:
NIFT stands for National Institutional Facilitation
Technologies. Clearing House of State Bank of Pakistan has
shifted a tiresome part of its work to a private institution
named NIFT. NIFT collects cheques, demand drafts, Pay
orders, Travelers Cheques etc from all the branches of
different banks within city through its carries and send them
to the branches on which these are drawn for clearing. After
the branches approve the instruments drawn on them, NIFT
prepares a sheet for each branch showing the number for
instrument and amount in its favor and drawn on it and
sends it to each branch. A similar sheet for each bank is also
sent to clearing house of State Bank of Pakistan where
accounts of banks are settled in the same manner.

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LEARNING IN CLAERING DEPARTMENT:

My learning in clearing department was of the following
things:

 Procedure of clearing a cheque

 Checking of cheques
 Inward and outward clearing
 Different reasons of returning a cheques
 Types of clearing stamps

CLEARING PROCEDURE:

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Instruments collected are treated as Transfer, Transfer

Delivery, Clearing and Cheque collection.

CHECKING OF CHEQUES:
When the instruments are collected from the client.
Following things are checked:
 Cheque date, instrument should be neither stale/nor
post-dated
 Title
 Amount in figures and words should be the same
 There should be no cutting and overwriting on the
cheque
 Instrument should not bear any unauthorized
alternation
 Cheque is crossed

BUSINESS VOLUME:

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Description
(in Million) 2013 2014 2015 2016 2017

Share Capital 3,848 3,848 5,002 9,003 9,003

Investments 12,465 15,829 17,859 12,012 20,179

Deposits 37,136 49,015 42,374 41,056 49,610

Advances 19,513 29,022 25,875 31,087 32,097

“WEAKNESS OF SILK BANK”

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:-

 Slow growth in advances.
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 Banks debts are at dangerous level.

 Lack of investment in different sector.
 Bank’s interest income is decreasing every year.
 Lack of proper planning and evaluation of
finance department.
 New product are not launching as per time
requirement.
 Lack of research and analysis for availing new
opportunities.
 Bank’s performance evaluation/appraisal system is not
efficient.
 Poor network system to connecting the network
and database.

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

Incentives:

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If we observe the employees satisfaction scheme we can ob

serve that the lack of satisfaction as an employee.

Technological Advancements:
Silk bank has not using technological enhancement for their
benefits.

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.

“SUGGESTIONS & RECOMMENDATIONS”

Following are some suggestions for Silk Bank, Ltd.

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ADVERTISING:
Bank must let potential customers know that all attractions
for banking exist. This is done by advertising on television
and obtaining press coverage, in conjuction with direct mail,
window displays, leaflet in branches and in appropriate
other locations (such as hotels, shops, etc) and including
leaflets in statement of accounts sent to existing customers
in the hope that they will tell potential customers about the
services provided by our bank.

INCREASED ATM’S LOCATIONS:

Some personal sector customers prefer not to come to
branch. They increasingly want to deal with the bank in
other ways, such as home banking or use of Automated
Teller Machines (ATMs), which need to be at every branch
or some important shopping centers and airport etc.

INCREASE SERVICES:
One way to retain the customers is to offer a wide range of
services such as tax advice, free life insurance equivalent to
amount deposited, shares portfolio management, fund
management facility etc, complimentary to the core
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services. Banks must have a slightly different mix of services

and mean of providing these such that customers can
choose the mix that suits them best.

MANAGEMENT OF TIME:
There should be a good management of time for the sake of
employees i.e. offering them free break hours instead of
making them work in this time as well.

GROWTH SCOPE FOR EMPLOYEES:

Silk Bank should provide greater facilities to its employees
and give them business form their hard work and
Promotions as well. There is a criticism on the banking
management that the salaries of the employees are
decreasing in every succeeding year. And I think this will
shake the confidence and working habit of the employees.

BANKING PROFESSIONALS:
The bank should hire banking professionals having
experience in their respective fields that will boost the
performance of the company as currently MBAs are
produced for this field so they should be hired for

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enchancing the produced for this field so they should be

hired for enchancing the performance of company.

ATTRACT CUSTOMERS:
The banking company should offer such policies which
would attract customers which are denied by other banking
in the marketing.

JOB ROTATION AND PROMOTIONS:

Most of the bank employees, are sticking to one seat only
with the result that they become mater on one particular
job and loose their grip on the other banking operations. In
my opinion all the employees should have regular job
experience all out-look towards banking. The promotion
policy should be adjusted.

COMMUNICATION SYSTEM FOR EMPLOYEES:

As a system should be designed that every employees who
has some problems with his officers can communicate it to
the higher management and some steps must be taken to
improve that.

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“WHAT I HAVE LEARNT IN SILK BANK”

In Silk Bank Ltd. I really enjoyed working with the staff of Silk
Bank, having a wish to be employee of Silk Bank. It was
almost impossible to work in all the departments within that
limited time. But the staff of the branch provided me the
opportunity to work in the different departments for the
sake of practical knowledge. I feel highly indebted to work in
Silk Bank with the manager of that branch Mr. Mufassar
Goraya, because I learnt a lot in that branch.
During my intership training in the Silk Bank as I early
mentioned that I have worked in different departments &
seats and learnt the following things,
 How to deal with different types of customers
 Account opening
 Cheque book issuance
 Outward clearing
 Cheque for Collection

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 Different forms and vouchers filling

 Experience of working in a well reputed organization

“APPLICATION OF CLASS ROOM LEARNING”

During my intership of six weeks in Silk Bank, Ltd. Kalma
Chowk Branch, Lahore the knowledge given by my
respected and devoted teachers proved to be very helpful in
understanding the environment in the organization and
working practically.
Following are some key points about applications of
my class room learning in the organization.
The knowledge achieved from the subject “Business
Communication” helped me in understanding customer
dealing i.e. How to deal with them? How to understand
their problem? etc.
It also helped me in understanding the inter
Organization Communication i.e. circulars, notices etc.
Also the knowledge which I got from the subject
“Computer Application in Business” also proved very usefull.

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Financial Management and Principles of Accounting

helped me in understanding the accounting terminologies
which are used in bank e.g. What is debit and credit
vouchers? What are these for? And also in understanding
that how entries are made against certain heads.
I could do this only with the help of knowledge provided
to me in my two semesters of BBA at PU Lahore.

“IF I WHERE MANAGER AT SILK BANK”

If I would be a manager at SILK BANK I’ll take following

steps:
 I will apply such a communication system specially
designed for employees through they can share the
problems regarding work environment.
 Complete working and break hours will be offered so
that employees can work efficiently.

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 I will make it sure that some of the employees should

be sent for training to other countries and employees
from other branches should be brought here.
 I will make promotions, job rotation and bonuses, an
important part of policies of Silk Bank.
 At every month’s closing when employees stay at
branch even after working hours, a dinner from bank
will be offered.
 To remain potential customers certain services will be
provided and let them know with advertising.
 I will make it sure that working environment,
equipment, furniture and staff dressing should be
according to the modern banking style.

“CONCLUSION”
What I concluded?
It has been only one year since the establishment of Silk
bank, and since its establishment it has aimed to become
the leading bank of Pakistan by that provides outstanding
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services to its customers. The bank has seen phenomenal

growth in the past year by opening more branches in the
country, increasing the deposit base, while also increasing
the assets and profits of the bank. The services that Silk
bank provides have a great market penetration not only
because of their features but also the profit and markup
rates that they charge. Also the products that Silk bank
provides cater to sector of the economy. The top
management of the bank is always developing strategies
that cope with unexpected challenges to deliver products
and services more efficiently. Further more, as the bank is
growing, the number of employees at Silk bank are
increasing, which shows that Silk bank is being considered as
an employer, that provides its employees with a challenging
environment to work in, where they can harness their full
potential and shows confidence as an employer by the
employees of the bank. Lastly to become the leading bank
of Pakistan, Silk bank has to benchmark its services to its
major competitors in the industry or the market leader in
the industry and provide a continuous mean of
improvement in its existing products and services, while
introducing new ones to the industry.

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