A S S I G N M E N T O N

M O N E Y B A N K I N G & F I N A N C E

SUBMITTED TO

Mr. Riaz Ahmed Mian

SUBMITTED BY

Mr. Muneed Allaha Rakha M14BBA073Mr. Haris Ali M14BBA076Mr. Falak Sher Rehamani M14BBA078

HAILEY COLLEGE OF BANKING & FINANCE

UNIVERSITY OF THE PUNJAB

LAHORE Page 1 of 33

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ACKNOWLEDGEMENT

All thanks to Allah Almighty, the benevolent and compassionate, who blessed me

with the power & capabilities and remained contented on all intricacies found during the

successful completion of my task. I feel myself indebted and highly grateful to honorable

Teacher for allowing us to avail such a precious opportunity, to enhance and polish our

skills and knowledge under a qualitative supervision and constant market touch.

I also extend my thanks to Manager Operations (KAMAL SAHIB) SAMBA, along with all

the Staff Branch, especially Mr. Zulfiqar Bhatti for their encouraging response and

guidance to make my assignment as a real learning experience

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DECLARATION

I hereby declare that this Assignment titled

“SAMBA BANK PAKISTAN”

Submitted by us to the Hailey College of Banking And Finance, Punjab University,

Lahore, is a bona fide work undertaken by us and is not submitted to any other

University or Institution for the award of any degree diploma / certificate or published

any time before.

Table of Contents

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Sr.# Topic Page No.1 Mission Statement 72 Vision Statement 83 Board of Directors 94 History & Background 105 International Achievements 136 SAMBA Bank in Pakistan 147 History of SAMBA Bank in Pakistan 158 Core Values 169 Branch Network 17

10 SAMBA international Presence 1811 Products & Services 1912 Account Facility Provided to Customers 2413 Financial Statement Analysis 2614 SWOT Analysis 2815 PEST Analysis 3116 Conclusion & Suggestions 33

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MISSION STATEMENT

To become the most admired bank by providing world class solutions to our

customers by:

Exceeding their service expectations.

Investing in people by hiring, motivating and retaining talent.

Creating sustainable value through growth and efficiency of all stakeholders.

Delivering superior returns to our investors

Benefiting the communities in which we operate

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SAMBA VISION

To be the most admired financial institution in Pakistan providing world class service

and innovative solutions through its people and technology, yielding superior returns

and demonstrating responsible corporate citizenship.

SAMBA BANK LIMITED BOARD OF DIRECTORS

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Dr. Shujaat Nadeem (Chairman)

Mr. Antoine Mojabber

Mr. Beji Tak-Tak

Mr. Farhat Abbas Mirza

Mr. Humayun Murad

Mr. Javed Iqbal

Mr. Medhat Fareed Abbas Tawfik

Mr. Zahid Zaheer

Mr. Shahid Sattar (President & CEO)

HISTORY & BACKGROUND

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SAMBA BANK:

Samba, or The Saudi American Bank as it was once known, was established on

February 12, 1980 with the takeover of Citibank branches in Jeddah and Riyadh in

accordance with a Saudi notification program that forced all foreign banks to convert

their branches to affiliates with Saudi nationals acquiring at least 60% ownership.

Citigroup entered a Technical Management Agreement under which it agreed to

manage the new bank. The former Prime Minister of Pakistan, Shaukat Aziz, was the

Managing Director of the bank in the 1990s.

First National City Bank (Citibank) opened its Jeddah branch in 1955, and its Riyadh

branch in 1966. Citibank created SAMBA, in which it took a 40% share, to take over its

branches in Saudi Arabia, pursuant to a Royal Decree on February 12, 1980. In 1985

SAMBA opened a branch in Istanbul that it closed after 1994, and at one point

maintained a subsidiary in Geneva and a representative office in Beirut. In the late

1980s SAMBA opened a branch in London.

In July 1999 SAMBA merged with United Saudi Bank by an exchange of shares, to form

one of the largest banks in the Middle East. Before the merger Citibank owned 30

percent of SAMBA, having sold a 10 percent tranche to two public agencies in 1991.

After the merger Citibank was still the largest shareholder with 23 percent of the shares.

Kingdom Holding Company (owned by Prince Al-Waleed bin Talal) also had a large

share ownership deriving from his ownership in United Saudi Bank.

SAMBA FINANCIAL GROUP:

SAMBA was always the acronym for the Saudi American Bank but the name was

changed to Samba Financial Group permanently in 2003 and all references to Saudi

American Bank were removed. This name change followed Citibank's decision to pull

out of Saudi Arabia and sell its by then 20% stake to the General Organization for

Social Insurance. Officially, this was done due to the anticipated relaxation of laws

governing foreign banks' operations in the Kingdom. Some speculate that this was due

to rising anti-American sentiment in Saudi Arabia. This has become more evident after

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the change of the Saudi British Bank name as well to SABB in 2006. Nevertheless

SABB is still an HSBC partnership and they have changed their artwork and colors from

Green and White to the HSBC logo.

SAMBA PAKISTAN:

In March 2007, Samba Financial Group acquired 68% of Crescent Commercial Bank

Limited (CCBL) in Pakistan. CCBL, established in 2002, was formerly known as

Mashreq Bank Pakistan Limited, which in turn was the result of the merger in 2003 of

Crescent Investment Bank Limited and the Pakistan branches of Mashreq Bank psc.

SAMBA DUBAI:

In 2008, Samba opened a branch in Dubai. Samba opens full service branch in Dubai

becoming the first Saudi Bank to operate in the UAE.

SAMBA USA:

In February 2011 Samba Financial Group entered into a Joint Venture in the United

States and formed Samba Financial Group USA to market a Private Lending and

Private Investment Division.

SAMBA UK:

Samba has been present in London for more than twenty years, starting as a

representative office in 1984, and upgrading to a fully licensed bank in 1987.

SAMBA Qatar:

Samba opens its branch in Qatar, becoming the first Saudi bank to establish a presence

in Qatar with core operations including corporate and investment banking. Samba has

obtained all the necessary licenses to open its office in the Tornado Tower in West Bay,

the most prestigious Business District in Doha.

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INTERNATIONAL ACHIEVEMENTS

Samba has won many numbers of Awards in previous 9 years continuously in Saudi

Arabia and Middle East. Presently Samba has achieved following Awards in 2013-14.

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In the Field of Global Finance :

Safest Banks list for 2013, Samba ranked 1st in Saudi Arabia, 4th in the Middle

East and 46 worldwide(5th in a row).

Best Foreign Exchange Provider in Saudi Arabia

Best Bank in Saudi Arabia

Best Islamic Investment Bank

Best Consumer Internet Bank in Saudi Arabia

Best Integrated Consumer Bank Site in the Middle East and Africa

Best Mobile Banking in the Middle East and Africa

Best Corporate Internet Bank in Saudi Arabia

Best Trade Finance Services in the Middle East and Africa (Internet Award)

Best Integrated Corporate Bank Site in the Middle East and Africa

Best Corporate Information Security Initiatives in the Middle East and Africa

Best Islamic Project Finance Provider

Islamic Finance Deal of the Year:

The Euromoney Award:

Best Managed Company in Saudi Arabia (3rd in Middle East)

The Asian Banker:

Best Retail Bank in Saudi Arabia

SAMBA BANK LTD PAKISTAN

INTRODUCTION:

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Samba Bank Limited is a majority owned subsidiary of Samba Financial Group of Saudi

Arabia. Samba Financial Group currently holds a 80.68% stake in Samba Bank

Limited. 

Our vision is to become a household name in Pakistan by winning customer business

through high quality services and innovative products. We are focused on building a full-

service consumer, corporate, investment banking and capital markets franchise. 

Currently, we are working to expand our products and services across the consumer,

corporate, investment banking and global markets. 

Looking ahead, management is exploring other growth areas including private banking,

wealth management and transaction services. 

Our Board of Directors bring with them immense banking and business experience, a

strong knowledge of the global banking industry and a deep understanding of the

opportunities and challenges faced by the bank. We have a highly experienced senior

management team capable of ensuring that the bank becomes and remains one of the

top performing financial institutions in Pakistan. 

We are listed on all three bourses of the country namely Karachi, Lahore, and

Islamabad. The bank has a network of twenty eight (28) branches, eleven located in

Karachi, eight in Lahore, four in Islamabad, and one each in Peshawar, Sialkot, Multan,

Gujranwala and Faisalabad. 

HISTORY OF SAMBA BANK PAKISTAN:

In March 2007, Samba Financial Group acquired 68% of Crescent Commercial Bank

Limited (CCBL) in Pakistan. CCBL, established in 2002, was formerly known as

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Mashreq Bank Pakistan Limited, which in turn was the result of the merger in 2003 of

Crescent Investment Bank Limited and the Pakistan branches of Mashreq Bank psc.

In March 2004 Trust Commercial Bank of Pakistan also merged in Crescent

Commercial Bank Limited Pakistan. So, CCBL was a full merged Bank of Crescent

commercial Bank Pakistan,Mashreq Bank Pakistan and Trust Commercial Bank

Pakistan when Samba Financial Takeover of this Bank.

To be more effective History we can draw a frame work of History of SAMBA BANK

PAKISTAN.

CORE VALUES

Meritocracy

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Equal Opportunity

Respect & Dignity

Integrity

Teamwork

MERITOCRACY:

SAMBA believes talent is brought to the force by advancing individuals not for who they

are, but for that they can produce. SAMBA value the role of each employee from the

highest level to lowest level.

EQUAL OPPORTUNITY:

SAMBA ensures all employees get equal opportunity to succeed. We value diversity

and ensure fairness for all employees.

RESPECT & DIGNITY:

SAMBA respect every individual irrespective of their background and evaluate them on

their potential and performance. SAMBA values such individual contributions and

encourages employees to excel.

INTEGRITY:

At SAMBA, from top management to junior interns, management demand and maintain

the highest level of integrity. This is not just something we do, it is what we are.

TEAMWORK: Samba believes single units when joined together; combine into a

powerful force that can achieve great things. Samba encourages to think as a group

and to support each other.

BRANCH NETWORK OF SAMBA PAKISTAN .

Currently, Samba bank Pakistan has a network of twenty eight branches, located across

the country.

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These branches are located in this series:

Punjab-12

Sindh-11

KPK-1

ICT-4

Punjab:

Lahore-8

Sialkot-1

Multan-1

Gujranwala-1

Faisalabad-1

Sindh:

Karachi-11

KPK:

Peshawar-1

ICT:

Islamabad-4

SAMBA INTERNATIONAL PRESENCE

International growth is a vital part of Samba's vision for the future as it seeks to bring its

brand of world class banking services to customers across markets around the world.

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Samba has maintained a strong presence in the United Kingdom for over 20 years with

a branch in London. More recently, Samba has also established a visible footprint in the

UAE, Pakistan and Qatar, soon to be followed by other markets as it continues to

expand its geographic boundaries.

Today, Samba Financial Group is well on its way to transforming itself from being Saudi

Arabia's premier bank into an international financial services entity with a growing

presence in Europe, the Middle East and South Asia.

 Samba KSA

 Samba UK

 Samba Dubai

 Samba Qatar

PRODUCTS AND SERVICES

SAMBA PRODUCTS

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Samba ATM:The Samba ATM Card is easy to use, completely reliable and convenient. Imagine the

convenience of accessing your account and most of your personal banking without

having to regularly visit your branch. Samba Bank Limited is proud to offer this service

to its valued customers.

 Allows you to access your funds 24/7 through any ATM in Pakistan including

ATM's of    other banks and Cirrus and Maestro enabled ATMs globally. 

Allows you to withdraw upto Rs. 50,000 cash daily.

Account to account funds transfer (within relationship)

Payment of utility bills (KESC, LESCO,GEPCO,SNGPL,SSGC, Ufone Postpaid &

Prepaid, Warid Postpaid & Prepaid and Telenor Postpaid and Prepaid)

Balance Inquiry and Mini Statement

Samba Internet Banking:Samba Internet Banking Services, with no closing hours and no boundaries, is the

revolutionary banking technology which gives you access to your banking needs

globally. Just get on the Internet, anytime, anywhere and access your Samba Bank

Account and avail the following services. 

Bank Account: Order a cheque book.

View, print or download up-to the-minute information about your account.

Account to account funds transfer (within relationship)

 Account to account funds transfer (across accounts) 

 Lost & Stolen ATM Card blocking and replacement

 Book a Term Deposit and inquire about applicable rates.

 Subscribe/Unsubscribe to Samba SMS Alerts

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Utility Bill Payments New(KESC, LESCO, GEPCO, SNGPL, SSGC, Ufone

Postpaid &    Prepaid, Warid Postpaid & Prepaid and Telenor Postpaid &

Prepaid)

Business Insurance:You can now enjoy insurance cover against unfortunate events like:

1. Fire and Lightning

2. Burglary

3. Riots and strikes

4. Act of terrorism

5. Natural disaster, etc.

Samba Phone BankingSamba Phone Banking gives you direct access to your account without physically

visiting the branch. Our customer service representatives aim to provide you with

immediate banking support and solutions. Samba Bank limited through its advanced

technology also offers one of the best financial solutions available in the market today. 

To exceed the growing expectations and deliver a delightful banking experience, in a

highly competitive and dynamic business environment, Samba Phone Banking provides

immediate support with value added services as detailed below: 

 General banking information 

 ATM & Bank locations 

 Bank product information 

 Bank charges information 

 Account opening procedure & documentation 

 Bank account balance inquiry 

Samba Inter Bank Funds Transfer:

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No more queues. No more banking hours. Now you can transfer funds up to Rs.

250,000 per day from your nearest Samba ATM to accounts at any 1 Link member bank

or pay loan installments, bills and other fees.

The beneficiary can access the transferred funds from any ATM displaying the 1 Link

logo.

Benefits of Samba Inter Bank Funds Transfer Send & receive money instantly.

 Fast, Convenient, Simple.

 24-Hour service through ATMs.

 Secure (no cash, no cheques).

SAMBA SERVICES

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Samba particularly provides services in these sectors:

Corporate Services

Investment Services

Treasury

Transactional Services

1)Corporate services:

Corporate Banking at Samba Bank Limited rests on relationship building through

offering comprehensive and tailor made solutions to suit the banking needs of local

companies, multinational corporations and public sector enterprises.

2)Investment Banking Services:

Samba Bank Limited's vision is to become the most trusted financial advisor to leading

Pakistani corporates as well as to international strategic/financial investors seeking

entry into the Pakistan market by offering a full spectrum of innovative and tailor-made

investment banking solutions. We aim to rapidly build our Advisory, Project Finance,

and Research capability resulting in enduring relationships with the leading corporates

that would be served with our rapidly evolving products and services.

We are building a domestic team with unmatched and complementary skills spanning

the full spectrum of Investment Banking and Capital Markets products/solutions. We aim

to quickly acquire in-depth knowledge on all major sectors of Pakistan's economy and

deploy it to originate and execute landmark transactions. Our parent, Samba Financial

Group gives us a natural competitive positioning in the Kingdom of Saudi Arabia and the

GCC to capture a majority share of business related to foreign strategic investments in

Pakistan.

3)Treasury:

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Samba Bank Limited Treasury offers a comprehensive range of product solutions

through a dedicated team of professionals, aimed at helping you meet your financial

administration needs. Samba is committed to follow best market practices, delivering

seamless service and tailor-made solutions that meet your specific exposure

management needs.

4)Transactional Service:

Samba Bank Limited provides you with an unparalleled ability to effectively execute

transactions anywhere in the world. We offer a full range of transaction banking

solutions to help manage your working capital more efficiently. Our aim is to provide a

service that takes full account of your local needs as well as regional and international

requirements using our local expertise and the unrivalled resources of our parent,

Samba Financial Group.

We use innovation coupled with technology to deliver transaction banking solutions to

facilitate benefits such as:

 Efficient and effective cash flow management

 Minimized administrative costs

 Maximized returns on balances

 Enhanced risk management capability

 Improved security and audit controls

ACCOUNT FACILITY PROVIDED TO CUSTOMERS

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1) Current Accounts:

Samba Bank Limited's current account gives you easy & nonstop access to your money

with unmatched features. A worry-free account with low monthly balance requirement,

plus great features like Online Banking, ATM facility, etc. With Samba Current Account

you surely are going to find the checking account that makes your life easier and fits

your lifestyle.

Samba current account is further divided into two categories

A) Samba SEHEL account

B) Basic banking account

A) Samba SEHEL Current Account

Small surprises that make a big difference Introducing Samba Sehel. A Current Account

that caters to your unique needs. Samba Sehel Current Account offers you a variety of

benefits absolutely free based on your monthly average balance. For new and exciting

features, please see the details below: you can choose to maintain Rs. 100,000, Rs.

500,000 or above.

Maintain Monthly Average Balance to avail*:

Tier 1 (Rs. 100,000 to Rs. 499,999)

 Free two 25 leaf cheque books per month

 Free 3 pay orders per month

 Free 3 countrywide online transactions per month

 Free clearance of 3 outstation cheques per month

 Free ATM card

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 IBFT through ATM at Rs. 35/-

 Free statement upon request

B) Basic Banking Account (BBA)

If you only write a few checks a month or keep a small checking balance, a Basic

Banking Checking account is right for you.

 Minimum initial deposit of Rs. 1000

 Non-remunerative local currency current account

 No limit on minimum balance, however the BBA account  will be closed if the balance

is nil for a continuous six    month period

 Maximum two deposit and two withdrawal transactions allowed free of charge through

checks (cash/clearing)    per month.

 Unlimited free of charge cash withdrawals only from Samba ATMs

 Yearly statement of account.

FINANCIAL STATEMENT ANALYSIS

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.

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SWOT ANALYSIS

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SWOT Analysis refers to Streghts,Weaknesses,Opportunities and Threats to an

Organization. When we make analysis of Samba bank then we see these SWOT’s

faced by SAMBA BANK.

STRENGTHS:

1)Supported by SBP:

SAMBA BANK is completely supported by state bank of Pakistan. As samba have huge

amount of reserve with state bank of Pakistan so in future samba will open new

branches in different cities of Pakistan with the help of SBP.

2)Financially strong Parent:

As samba belongs to samba financial group(Saudi Arabia) which is one of strongest

financial resource of world a banking system requires strong financial source for its

nourishment so samba is helped by samba financial group when it is in need of finance.

3)Automatic Operations.

One of strong point of samba bank is that most of the operation of samba bank are

automated which minimized the chances of errors.

4)Full Day Banking.

Samba provides full day banking facilities to its customers. Client can withdraw amount from his account any time from bank.

WEAKNESSES:

1) Low number of Branches(weak network):

There is less number of branches in Pakistan i.e only 28 branches

2) Low Job Satisfaction:

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There is low satisfaction of job for employees due to foreign bank and low salary

3) Lack of Training Facilities:

Training facilities are too few in SAMBA bank so employees are not given good nourishment.

4) Low number of Products:

Samba has very Low number of Products in Market.

OPPORTUNITIES:

1) International Presence:

Due to international Presence Samba has opportunity to gain its worth.0

2) Strong potential for growth:

Samba has much potential for growth due to heavy security deposit with SBP.

3) Branches In Remote Areas:

Samba has all its branches in remote area so it can attract more investors by giving them higher rate of interest.

4) Foreign Investment attraction:

Due to International Bank Samba has opportunity to get more foreign investment than local banks in Pakistan.

THREATS:

1) High Charges:

Due to high bank charges SAMBA has threat to forgo its customer.

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2) Stiff Competition:Due to flourished banking industry SAMBA has to survive in perfect competing market.

3) No credit card:

It is the era of technology people like to carry credit card with them which Samba

has not

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PEST ANALYSISPEST analysis shows the analysis of Political, Economic, Social, and Technological factors. We discuss these factors to see that How these factors affect the working of a bank?

Political AnalysisIn political analysis we discuss these factors:

1) Inconsistent Govt. policies:

It includes taxation policies, fiscal policies like budget making etc. these policies have direct impact on working of a bank because when Govt. increase or decrease the tax rate it directly affect the income or profit of the bank.

2) Political instability:

Political instability means rapid change in Govt. As in Pakistan political environment is unstable like new Govt. rejects the old Govt. policies and frames his own policies. Due to this local as well as foreign investors hesitate to invest because they are apprehensive about the business conditions. So when investment is low than business of the bank also goes down.

3) Corruption By Politicians:

In Pakistan political structure is corrupt. Some politicians take a heavy loan from a bank and do not pay back the loan and waive the amount of loan due to political pressure. This destabilized political & economical scenario which leads to uncertainty among local and foreign investors.

Economic Factors1) Unemployment:

As unemployment increases in the country, no. of customer of banks goes down. Because of unemployment people’s income remain low this may also reduce their investing power.

2) High inflation rate:

Due to excessive supply of money in the market when value of currency goes down, this may increases the prices of goods in the market, which restrict the public to save more when saving is low, people’s power to invest reduces and simply due to low investment business of a bank reduces.

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3) Low per capita income:

As in Pakistan due to low national income, Per-Capita income remains low. Due to low per-Capita income people have fewer opportunities for business. Due to small business people’s power for borrowing remains low. In this case bank’s business reduces due to small no.of customers.

Social factors1) Religious Trend:

In Pakistan some people have religious mind, they hates the term interest. They consider the interest against the teachings of Islam. So they like the Islamic banking system instead of normal commercial banking. So these people shift their investment to Islamic branches and this may reduces the business of normal commercial bank.

2) A little Knowledge About Banking Products:

In Pakistan due to high rate of illiteracy people have a little knowledge about banking products. So this may restrict the people to use the banking products.

3) Favoritism:

Sometimes top level managers or other people who have authority hire such people who are untrained and unskilled or sometime issue loan to those people who are not deserve for that, this act sometime cause a problem for bank and reduce their efficiency.

Technological Factors1) Growing Network Of Online Banking

This is an age of modern era. In banking sector almost all the banks use modern technology. With the help of this technology banks do their whole business on online network. This makes the bank environment a paperless environment and also reduces the workload on bank employees. FBL has the strongest computerized network among all the banks in the Pakistan.

2) Using New Software

Now-a-days bank uses new software’s to record the transaction. In this way whole function of a transaction i:e recording, posting, summarizing, and updating the results has been recorded at the single click of mouse. This may save the bank time cost and operating cost.

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CONCLUSION

Keeping all aspects in mind, suggestions (that what SAMBA should do) and on the

basis of our research and visit to SAMBA it is concluded that Samba has, Qualified

Staff, Effective and Efficient Management, Co-operative Staff. Due to which Samba

has created a well image in mind of Customers in a very short period of time and now

People don’t feel hesitate while working with SAMBA.

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SUGGESTIONS

On the Basis of Our Research And Report we can Suggest some good policies to

SAMBA BANK PAKISTAN.

Followings are some suggestions for Samba bank to improve its operations more

successfully in Pakistan. i.e

Increase network.

Introduce credit schemes.

Issue Credit Cards.

Issue auto-finance schemes.

Increase Advertisement.

Raise satisfaction of Customer.

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