INTERNSHIP REPORT
Submitted by: Nicholas Ali
[email protected]
Internship supervisor: Ali Salman Branch Manager
[email protected]
1
10 August 2012
Table of Contents Executive Summary………………………………………………………………………….3 Introduction to Silkbank……………………………………………………………………..4 Company History…………………………………………………………………….4 Vision………………………………………………………………………………...4 Mission………………………………….……………………………………………4 Values………………………………………………………………………………..4 Core Values………………………………………………………………………….4 Why SILK? .............................................................................................................................5 The Purpose of an Internship………………………………………………………………...5 Products Dealt With………………………………………………………………………….6 Current Accounts………………………………………………………………….....6 Saving Accounts……………………………………………………………………..7 Term Deposits……………………………………………………………………….8 Silkbank Ready Line………………………………………………………………...8 Bancassurance……………………………………………………………………….9 Internship Activities…………………………………………………………………………10 Customer Relations………………………………………………………………….10 Cash Operations Department…..................................................................................11 Sales Department……………………………………………………………………11 Audit Experience……………………………………………………………………12 Excess Amount Assignment…………………………………….…………………..12 Assessment of the Internship………………………………………………………………..12 Skills Gained from the Internship………………………………………………...…12 Time Management Skills……………………………………………………12 Communication Skills……………………………………………………….13 Co-ordination Skills…………………………………………………………13 2
Social Skills…………………………………………………………………13 How the internship influence my future careers plans………………………………13 Executive Summary
Pakistan has quite a lucrative and illustrious banking industry. This industry also contains a lot of competition; competition between different local incorporated commercial banks. Silkbank is one of those local incorporated commercial banks, which came into being in March 2008, when the Saudi Pak Commercial Bank Ltd. was bought and renamed Silkbank. Silkbank aims to be a benchmark of excellence in premier banking, along with being trusted by its customers and being an employer of choice. During my internship at Silkbank, I worked in the Customer Relations, Cash Operations and Sales departments where I performed a number of duties and learned how to perform a number of tasks, along with learning important information about the department, bank and industry. I studied the products offered by the bank, such their accounts, term deposits, loans etc. While being an internee at Silkbank, I acquired a number of new skills and perfected a few existing ones. I learnt how to deal with certain customers in person and on the phone and how to be more efficient when performing certain tasks. This internship proved to be quite valuable as it really helped me figure out what my options are, not only in the banking industry but in the corporate industry as a whole. It also fortified what I can major in during my MBA and how well I will fare when I really do start working professionally.
3
Introduction to Silkbank Company History Silkbank came into existence on March 31, 2008, a syndicate comprising of the IFC, Bank Muscat, Nomura International and Sinthos Capital led by senior bankers Mr. Shaukat Tarin and Mr. Sadeq Sayeed who acquired 86.55% stake in Silkbank for around $213 million. Saudi Pak Industrial and Agricultural Investment Company Pvt. Ltd (SAPICO) was renamed Silkbank Pakistan Ltd. Under the new leadership, the Bank continues 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 Silkbank prides itself on being a conscientious and responsible corporate citizen with a commitment to the development of Pakistan. At Silkbank, our employees are encouraged to give back to society and we have made concerted efforts towards the development of healthcare, education and constructive character building sports activities in the underdeveloped segments of our country. •
Core Values o Customer Focus o Integrity o Teamwork o Creativity o Meritocracy o Humility
4
Why the name SILK? Silkbank is named after the silk route, which was an illustrious trade route network that connected East, South and Western Asia with the Mediterranean and European world along with parts of North and East Africa.
The Purpose of an Internship Before joining the workforce many students take up a six week program at a reputable firm to learn firsthand what a job is truly like. This six-week program is called an internship; the simplest definition of an internship is to gain experience. But experience is quite vague a term. What do you specifically learn at an internship? In my tenure at Silkbank I pinpointed three topics. a. How to behave in a working environment The first and most important point of an internship is to learn how to interact, socialize and learn what is appropriate in a working environment. Many young adults find it quite hard to adjust to professional surroundings which are why at times this is considered the most basic achievement. b. Learning the procedures of certain tasks In any organization, a department conducts and performs its task in accordance with a certain procedure. For example, at Silkbank cash operations department, for cash withdrawals and deposits, a certain teller transfer number is assigned to every transaction. Another example is of recording cheque books and Visa debit cards. A certain method is used to perform these tasks. This is an extremely important objective of an internship and is sometimes deemed as the most important achievement in the tenure of an internship. c. Learning about the industry When working in a company, people learn about the company’s industry to stay up to date with current events. The same applies to the banking industry. You may work in a certain bank, but all banks may not conduct themselves in the same manner. Procedures may be 5
slightly different from each other from bank to bank. But the rules that govern a bank will remain the same. For example certain banks are given the privilege of selling government securities and certain banks are assigned to collect certain utility bills. But all banks are governed by the State Bank of Pakistan and all banks follow the rules set by the State Bank, examples are that withholding tax on any cash withdrawal is 0.2% and tax on profit from interest is 10% at all banks. It is of the utmost importance to learn about the industry as profusely as one can, because one may not work in a certain bank their entire life but can make a career in that particular industry, and we must always remember that knowledge is power.
Products Dealt With 1. Current Accounts a. All-in-One Account Silkbank’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 The Business value account is most beneficial to businessman employed in the trading business. Through Jubilee’s General Insurance scheme up to Rs. 10 million of the inventory and merchandise is insured. Apart from that customers are also entitled to cheque books, pay orders, inter-city transactions and Silkbank 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 autoinsurance rates are offered with this account, along with being entitled to cheque books, pay orders, Silkbank Visa debit cards and inter-city transactions.
6
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 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 This account calculates your profit at 8% per annum and credits your account with that amount daily.
b. PLS Savings Account Having a Silkbank 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
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
8
With this account, customers receive a pay out every month on the invested amount and the term deposit is valid for a year.
4. Silkbank Ready Line
Silkbank 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 Silkbank Visa debit cards, a credit line operable from all Silkbank 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.
5. Bancassurance Schemes 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
a. Silk Educational Takaful
9
share
the
commission.
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 can aspire for a better future, without any drastic financial fears.
c. Silk Health Line
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.
10
Internship Activities 1. Customer Relations During my first week at Silkbank, I was paired with the Customer Relations Officer (CRO) of the branch. Here I learned the most basic of functions and the day-to-day tasks of the branch. These include; i.
Host of the day, daily QMS (Qmatic Service) reports and Forex (Foreign Exchange) documents have to be completed before the customers arrive.
ii.
Apart from that, I learnt the Silkbank method of greeting customers in person and on the phone.
iii.
Helping customers fill in their cheques, deposit slips and various other bank forms.
iv.
Dealing with queries on different products and bank account statements.
v.
Updating the brochures and posters on products and different policies so that the customer finds it easier to deal with Silkbank.
vi.
CROs are also responsible for checking the drop box for complaints and utility bills along with ensuring that all electrical devices such as lights and air conditioners are properly functioning.
vii.
The cleanliness of the branch and the staff’s conduct also falls under the responsibility of the CRO.
In short the Customer Relations Officer must help facilitate the customer to make his Silkbank experience more pleasant.
2. Cash Operations Department
While I was in the cash operations department, I performed a number of tasks which include;
11
i.
Stamping the outward cheques with the proper clearing markings and checking that all the data on the cheque and deposit slips were valid. In addition I also created the clearing document attached with the outward cheques, when it is sent to the clearing department of the bank.
ii.
Preparing documents for the procedure of cheque books and Visa debit cards, from their issuance to destruction.
iii.
Creating documents pertaining to ATM replenishments.
iv.
Creating packets (stacks of 100 notes of a certain denomination) of Rs. 500 and Rs. 1000 notes and also helping in creating shipments of cash to be sent to different branches.
v.
I was also taught how to make the daily vouchers in their proper format.
vi.
Recording documents in their proper files.
3. Sales Department
From the Relations Manager and Sales Executive I learnt how they create and manage their customers’ accounts.
i.
I helped a Sales Executive complete his call reports and through that I learnt that they have to meet a maximum of 14 customers a day, with a minimum of 10 customers.
ii.
I helped a Relations Manager calculate the Zakat to be deducted from an account and also in calculating the withholding tax off cash withdrawals of a certain account.
iii.
Learnt the formula and calculations of the interest rate for the term deposits.
12
iv.
They are given different quotas to achieve at the beginning of every month which include a number of accounts to be opened and a number of deposits to be made; along with increasing the current balance of their existing customers.
v.
All members of the sales department create a Pipeline, which is the next step that they will perform that particular month to get more customers.
vi.
They also have to prepare call reports, which are the number of customers they have met in a particular day.
4. Audit Experience I was quite lucky that while at Silkbank, I got the opportunity to experience an internal audit of the branch. The audit continued for four days and during that time, I was asked to help auditors with certain tasks. i.
I helped the auditors with checking the dates of cheque book destruction so that it coincided with the reminded letters that were posted.
ii.
I also helped in checking cash receipts that were issued to coincide with the document that was prepared in recording those cash transactions.
5. Excess Amount Assignment During my duration, I was given an assignment by the Branch Manager to compute the average amount of the excess amount insured overnight of the branch. All branches have a certain amount which has already been insured by the bank, to be kept in their vault overnight, during the weekends and during holidays. When the amount in the vault exceeds the designated amount already insured, the bank must ask for insurance coverage for that excess amount overnight, or over the weekend or holidays.
Assessment of the Internship Skills gained from the internship 13
1) Time Management Skills During my time at Silkbank I learnt the importance of punctuality and performing a task as quickly but also as efficiently as possible. Time management is an important element of work; and one learns of prioritizing and organising one’s tasks to the time available to them.
2) Communication Skills When one works in any organisation, especially in customer orientated organisations such as banks, one must hone in on and perfect their communication skills so as to relay information to customers quickly and as efficiently as possible. 3) Co-ordination Skills My experience at Silkbank also perfected my co-ordination skills, making the flow of work easy to comprehend and tasks being completed on time. 4) Social Skills Social skills are very important in any aspect of life, and the same rings true for the office environment. To ensure that a workforce can achieve its goals as efficiently as possible, all members of that workforce must feel comfortable with each other, without any strain on their professional relationships, allowing them to work at optimal levels.
How the internship influenced my future career plans Before my internship at Silkbank, I had not truly worked in any professional environment; so naturally I did not know how any organisations or banks performed. My internship at Silkbank was very worthwhile, as not only did I learn a lot but I quite enjoyed my stay at the bank. This experience, fortified the idea I had of working in a bank. Actually working in a bank is different from what people may perceive and on that note the banking sector is also not for everyone. A lucrative field, it will only be fruitful for certain people. I personally would not mind working in a bank, or even making a career in one.
14
Excess Amount Assignment Month
Amount Insured Number of times Insured
Jun-12 28-Jun 27-Jun 26-Jun 21-Jun 20-Jun 18-Jun 14-Jun 12-Jun 08-Jun 07-Jun 06-Jun 05-Jun 01-Jun
587,334 2,252,659 2,624,480 2,110,348 2,661,060 1,858,495 440,673 186,451 910,227 731,042 995,925 1,056,887 1,895,449
June-13 times May-13 times April-2 times Average Per Month Total
Average
June-18,311,030 May-16,296,355 April-2,121,658
1,408,541 1,253,566 1,060,829
Average per Instance
May-12 31-May 30-May 29-May 28-May 25-May 24-May 23-May 22-May 21-May 18-May 17-May 10-May
1,311,752 400,996 1,350,990 1,962,439 2,410,872 802,344 491,785 963,251 2,936,610 2,372,601 1,000,263 760,272 663,569 15
09-May
180,363
Apr-12 18-Apr 09-Apr
1,897,765 223,893
References/ Bibliography •
Silk Bank© (2012)Company Overview[Online], Available: http://www.silkbank.com.pk/
16
