Assignment Subject : Banking Law & Practice

Assignment Topic : Case Study on Silk Bank

Submitted To : Dr Ashfaq Ahmad
Program : B.Com (Hons)
Section : C (Morning)
Batch : 2020-2024

Submitted By :
M. Shehroz BC20-220
Abdullah Javed BC20-226
Silk Bank Logo

Introduction

The Silkbank Limited, formerly known as Prudential

Commercial Bank Limited and then Saudi-Pak Commercial
Bank Limited, is a Pakistani commercial bank which is based in
Karachi, Pakistan. It has currently a branch network of 111 in
29 cities. It is a very famous Islamic bank. This bank was
founded about 29 year ago in June, 1994. It began commercial
operations on May 7, 1995. Currently its Headquarters is
located in Karachi, Pakistan. The current CEO of Silk Bank is
Shahram Raza Bakhtiari.

Mission
The Mission of Silk Bank is as under :
“To be the leader in premier banking,
Trusted by customers for accessibility,
Service and innovation; be an employer of
Choice creating value for all stakeholders.”

Vision
The Vision of Silk Bank is as Under :

“Benchmark of Excellence in Premier Banking.”

Values
Silkbank prides itself in 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
 Customer Focus
 Integrity
 Teamwork
 Creativity
 Meritocracy
 Humility

History of Bank

The bank was founded in 1994. It began commercial operations

on May 7, 1995. It has a network of twenty branches. When the
bank is founded it is named as Prudential Bank.
On September 15, 2001, under the supervision of the State Bank
of Pakistan (SBP), the institution then known as the Prudential
Bank was acquired by the management and associates of the
Saudi Pak Industrial and Agricultural Investment Company (Pvt)
Ltd (SAPICO). The SAPICO gave the bank a new name Saudi
Pak Commercial Bank.
On March 31, 2008, a Consortium comprising of IFC
(International Finance Corporation), Bank of Muscat, Nomura
International and Sinthos Capital led by senior bankers Mr.
Shaukat Tarin and Mr. Sadeq Sayeed acquired 86.55% stake in
Silkbank for around $213 million or $0.47 per share (PKR 29.3
equivalent per share). Under the new leadership, the Bank will
continue to focus on SME & Consumer financing resulting in
efforts of increased profitability. In June 2008, the bank changed
its name to Silk Bank Limited.

Products & Services Facilities of Silk Bank

The Silk provide Following Banking Products and Services to
its customer in all braches all over the Pakistan. The products
of Silk Bank is as follow :

Types of Products
 Credit cards
 Debit cards
Types of Accounts
 Current accounts
 Savings accounts
 Fixed deposit accounts
 Silkbank All-in-One Current Account
Types of Loans
 Personal loans
 Home loans
 Business loans
Types of Financing
 Car financing
 SME financing
 Trade financing
Types of Services
 International banking services
 Remittance services
 Asset management services
 Wealth management services
 Online and mobile banking services
 Transformation Initiatives Strategies

Rebranding and Market Positioning:

Silk Bank embarked on a comprehensive rebranding initiative,
revamping its logo, brand identity, and communication
strategies. The bank focused on creating a modern, customer-
centric brand image to attract and retain customers.

Operational Excellence
Silk Bank invested in upgrading its technology infrastructure,
implementing new core banking systems, and enhancing
operational processes. This helped improve efficiency, reduce
operational costs, and provide a seamless customer
experience.

Product Diversification
Silk Bank introduced new and innovative product offerings to
cater to the changing needs and preferences of its customer
base. The bank launched a range of credit cards, loans, and
investment products, including Islamic banking solutions, to
attract a broader customer segment.

Customer-centric Approach
Silk Bank placed a strong emphasis on understanding and
meeting customer needs. The bank revamped its service
delivery model, trained staff to deliver exceptional customer
service, and introduced digital channels for enhanced
convenience.

Risk Management
Silk Bank implemented robust risk management practices to
mitigate credit and operational risks. This involved
strengthening underwriting processes, enhancing collections
mechanisms, and implementing a comprehensive risk
management framework.
 Results and Achievements of Strategies

Financial Performance
Silk Bank's transformation initiatives resulted in significant
improvements in its financial performance. The bank reported
consistent growth in profitability, with increased net profit
margins and a decrease in non-performing loans.

Market Share Expansion

Silk Bank successfully increased its market share by
strategically targeting untapped customer segments and
expanding its branch network. The bank also leveraged digital
channels to reach a wider audience and provide convenient
banking options.

Enhanced Customer Experience

The bank's customer-centric approach and investment in
technology led to an enhanced customer experience. Silk Bank
launched a mobile banking app and online banking platform,
offering customers greater convenience and access to various
banking services.

Stronger Brand Identity

The rebranding efforts helped Silk Bank establish a stronger
brand identity and increase brand recognition in the market.
The bank's new image resonated well with customers, leading
to improved brand loyalty and customer perception

Conclusion of Case Study

“Silk Bank's transformation journey showcases significant
impact that strategic initiatives can have on business. By
focusing on all Strategies, Silk Bank not only overcame its initial
challenges but also achieved substantial growth in financial
performance and market share. The bank's ability to adapt to
changing market dynamics, prioritize customer needs played a
paramount role in its successful transformation.”