PEST ANALYSIS

Political:
Privatization policy and deregulation.
Impact of subsidized credit affecting and Silkbanks.
Employment practices, Unions, Associations.
Political Interference and harassment.
Incidents of high taxation on banking industry.
Economical:
Constraints in mobilization of public savings because of inflation.
Staff cost.
Operating cost.
Bad debts
Social & Cultural:
Inadequate human resources.
Cultural strain to savings.
Defaulters lobby.
Declining education and work ethics.
Inadequate accountability.
Adequate empowerment.
Technological:
Inadequate communication infrastructure.
Inadequate computer facilities.
Inadequate IT training.

Suggestions and Recommendations

Ba nk s houl d t r y t o ge t r i d of t he pol i t i c a l i nf l ue nc e t o be a bl e t o
c ompe t e i n t he industry with prudent and strong policies.

The undue reliance on the public sector be minimized and ventures of private sectorsshould be
taken as well.

Redefining of rules, regulations and policies should be made implemented at all costs.

Efforts of great importance to be made for the over the counter services of
general banking making it more simple and faster to get a better response of the customers.

The behavior of the employee, especially on the counter has to be strictly monitoredand checked.

The still existed bureaucratic approval system has to be demolished.

All advances should be made by getting the maximum securit y and should focus
on productive work.

Be t t e r a nd c ompr ehe ns i ve l ong - t e r m a nd s hor t - t e r m pl anni ng s houl d be
ma de t oforecast the future needs.

There is a possibility of establishing a task force to ascertain the effectiveness of the policies
being implemented.

The Ba nk s houl d de ve l op a c ompr e h ens i ve r e c r ui t me nt pol i c y t o ma ke
onl y t he competent ones to be on the job
There is a still a vast pool of incompetent employees that has to right sized.

There is a lack of promotional element in the planning and budgetary decisions of theBank that
has to think seriously.

All branches of the Bank should be computerized for increasing the effectiveness andefficiency
of its employees.

Efforts should be continued to keep the powers of employees union to the minimum,like the
current situation.

Promotions must not be delayed and should be made on time to further increase
thecommitment and efficiency of the employees