Silk Bank - Yes We Can!: Shehneez Saeed
Silk Bank - Yes We Can!: Shehneez Saeed
Silk Bank - Yes We Can!: Shehneez Saeed
SHEHNEEZ SAEED
Introduction:
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).
On March 31, 2008, a Consortium comprising of IFC, Bank 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.
Ratio Analysis
By calculating all the ratios it is concluded that Silk Bank is earning good with a low net profit margin but
its return on Stock holders equity is very low and the bank is highly in debt. Even though Silk Bank has
weak Current and Quick Ratios but its evident that banks usually work on lending and borrowings so
such ratios are weak but it is not a preferable choice for investors to invest in it’s shares.