Intership Report on National Bank Limited

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Introduction to the Report 1. 1 Rational of the study The Internship Report titled as “Customer Satisfaction of Performance in NBL”, is submitted in practical requirement for the fulfillment of the Degree of Bachelor of Business Administration (BBA) under the faculty of Business Studies of International Islamic University Chittagong. Internship program is the systematic process of gathering, recording, analyzing and presenting data about the subject that a student goes to learn on the program.

The aim of this internship report is to connect practical knowledge with theoretical knowledge since everyone must be expert in both theoretical and practical knowledge for the competitive world. The report will mainly focus on how National Bank Limited is providing satisfaction to target customers and how its services are making transaction methods more acceptable inside the country and even worldwide. Identifying its major strengths and weaknesses base on some performance analysis is also the focusing point.

The whole report is designed to get an idea about the service standard of a private commercial banking service. This Internship Report was carried out within a short span of time, but I have tried my best to provide the most accurate and reliable information regarding my topic. 1. 2 Objective of the study The main objective of my internship is to focus on customer satisfaction level of National Bank Limited. Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within a business.

In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. In addition to this principal objective, the following are some of the specific objectives of the study: ? To find out the customer satisfaction level of the Bank. ? To analyze its performance based on available data. ? To present an overview of National Bank Limited. ? To suggest the probable measures to remove the identified problems. ? To study the operational activities of National Bank Limited. To acquire knowledge about the managerial aspect of the branch. ? To identify the financial structure of the branch. ? To focus the various service performances of bank. ? To find out the problem lying in branch operation as whole. ? To foresee the prospect of the branch ? To identify its strengths and weaknesses as well as threats and opportunities from customers’ viewpoint ? To suggest steps for improving their effectiveness of the service standard of the bank 1. 3 Methodology of the study It is a descriptive research tat describes the state of affairs as it exists at present.

It basically emphasizes on what has happened and what is happening in National Bank Limited. This report has been prepared on the basis of primary and secondary data. Primary sources ? Face-to-face interview with respective officers and staffs of the branch ? Informal conversations with the client ? Practical work exposures from the different desks of the section of the branch covered Secondary sources ? Annual report of National Bank Limited ? Web site of National Bank Limited ? Books on different marketing guidelines in customer satisfaction ?

Various circulars issued by the Head Office of National Bank Limited and Bangladesh Bank ? Office memo, operating manuals, articles, journals, publications and broachers issued by National Bank Limited 1. 4 Scope of the study Scope means the area on which the study has to be done. This study appears to hold much practical value for me. In our regular course curriculum we get more theoretical knowledge, which are encircled in the classroom. But here the study gives me the opportunity to make interpretation with the institutional knowledge and real world scenario.

The scope of my study is “Measuring performance of a bank with special reference to customer satisfaction”. 1. 5 Limitations of the study There were some major limitations and constraints, which created problems during the preparation period of my report. Some of those limitations were: ? Three months is not enough time for conducting a research work ? The bank had inadequate amount of ready-made information. ? The depth of analysis was limited to the extent of information disclosed by the bank ? One of the main barriers in writing this report was lack of confidentiality of data ?

Information was scattered and unstructured. Therefore it was a difficult task to compile them ? Lack of experience in conducting research CHAPTER: 2 Company Profile 2. 1 Financial system of Bangladesh 2. 1. 1 Introduction Economic growth and development can be achieved only through investment and the financial system of a country plays the most crucial role in arranging funds for investment by way of transferring surplus fund from the savers to the investors. Apart from the primary function of transferring savings into investment, the financial system provides a variety of supporting services essential to modern living.

This includes payment services, risk protection services, liquidity services and credit services. Bank is the pioneer institute for providing all of these crucial services. 2. 1. 2 Concept of Bank The English word bank originated from the German word banke and the Italian word banco (meaning long bench). Most of the scholars think that the Italian people accepted German word banke as banco and later the British introduced it as a bank. In today’s world the word bank is used to mean a financial institution.

Bank can be defined as follows- A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities. Banks are a fundamental component of the financial system, and are also active players in financial markets. The essential role of a bank is to connect those who have capital (such as investors or depositors), with those who seek capital (such as individuals wanting a loan, or businesses wanting to grow). 2. 1. 3 Structure of Financial System of Bangladesh Bangladesh bank as the central bank is at the apex of the financial system of the country.

The other institutions consisting the major components of the financial system broadly be categorized as i) Banks ii) Non-bank financial institution iii) Other financial institution Commercial Bank: the banking sector in Bangladesh comprises of four categories of scheduled banks. These are nationalized commercial banks (NCB), government owned specialized banks (SB), Private commercial bank (PCB) and foreign commercial bank (FCB). At present there are 48 operating in Bangladesh of which 9 are nationalized, 30 are local private bank and 9 are foreign banks.

Out of 30 PCBs 6 have been operating as Islamic Banks. Non-Bank Financial Institutions (NBFIs): the NBFI sector comprises one government owned investment company called Investment Corporation of Bangladesh (ICB) and 29 other institutions in the private sector licensed by Bangladesh bank. ICB provides financial assistance in the form of underwriting function and bridge financing to industrial projects/organizations. Apart from this the NFBIs in the private sector are primarily engaged in leasing business, investment financing, SME financing and housing finance. Other financial institutions

Insurance: at present there are 62 insurance companies in Bangladesh of which 60 are in the private sector and 2 are owned by the government. The insurance sector is still dominated by two large state owned companies – Shadharan Bima Corporation and Jibon Bima Corporation. Cooperative bank: The traditional cooperative consists of three tier system with Bangladesh Samabey Bank Limited at the apex, the central cooperative banks at the intermediate level and primary cooperative at the village level. Micro finance institutions: Among the microfinance institutions, the most prominent one is the Grameen bank.

It provides finance to landless poor particularly the rural women without collateral. Other such organizations are BRAC, ASA, PROSHIKA, etc. Stock Exchange: The stock market of Bangladesh consists of two exchanges at Dhaka (DSE) and Chittagong (CSE). 2. 1. 4 Regulation of the financial system The bank and non-bank financial institutions are guided by the following regulations: 1. Banking Companies Act, 1991. 2. Bangladesh Bank Order, 1972. 3. Financial institution Regulation, 1994 4. Securities and Exchange Act, 1993. 5. Micro credit Regulatory Authority, 2006 6. The Insurance Act, 1938. 7. The Companies Act, 1994.

Bangladesh Bank acts as the regulatory and supervisory authority for banks and non-bank financial institution. The insurance companies are guided by the Controller of Insurance under Ministry of Commerce. The stock exchanges are regulated by the Securities and Exchange Commission (SEC). The activities of microfinance institutions are supervised by the micro credit regulatory authority while functions of co-operative societies are regulated by the registrar of co-operative societies. 2. 2 Historical Background of NBL National Bank Limited (NBL) is one of the pioneers of first generation private commercial bank incorporated in 1983. o provide modern banking facilities to the mass people, NBL is opening branches in rural areas alongside urban areas giving due importance. Presently, the bank created a strong market base through 121 branches and 10 SME centers throughout the country. NBL emphasizes on customer satisfaction and involvement in its daily activities. The emergence of National Bank Limited in the private sector was an important event in the Banking arena of Bangladesh. When the nation was in the grip of severe recession, the government took the farsighted decision to allow the private sector to revive the economy of the country.

National Bank Limited was born as the first hundred percent Bangladeshi owned Bank in the private sector. Form the very inception; it was the firm determination of National Bank Limited to play a vital role in the national economy. We are determined to bring back the long forgotten taste of banking services and flavors. We want to serve each one promptly and with a sense of dedication and dignity. The then President of the People’s Republic of Bangladesh , Justice Ahsanuddin Chowdhury, inaugurated the bank formally on march 28, 1983 but the first branch at 48, Dilkhusha Commercial Area, Dhaka started commercial operation on March 23, 1983.

The 2nd branch was opened on 11th May 1983 at Khatungonj, Chittagong. At present, NBL has been carrying on business through its 121 branches and 10 SME centers spread all over the country. 2. 3 Vision and Mission Vision Ensuring highest standard of clientele services through best application of latest information technology, making due contribution to the national economy and establishing themselves firmly at home and abroad as a front ranking bank of the country. Mission In NBL’s words; “Efforts for expansion of our activities at home and abroad by adding new dimensions to our banking services are being continued unabated.

Alongside, we are also putting highest priority in ensuring transparency, accountability, and improved clientele service as well as to our commitment to serve the society, through which we want to get closer and closer to the people of all strata. Winning an everlasting seat in the hearts of the people as a caring companion in uplifting the national economic standard through continuous upgrading and diversification of our clientele services in line with national and international requirements is the desired goal we want to reach. 2. 4 Commitments of National Bank Limited In serving customers: ? Customer-first ? Quality-focus ? Credibility and secrecy In serving the bank ? Loyalty ? Total commitment and dedication ? Excellence through teamwork In carrying themselves at work: ? Discipline ? Honesty and Integrity ? Sincerity ? Caring ? Creativity 2. 5 Core Values of NBL National Bank Limited’s core values consist of 6 key elements. These values bind their people together with an emphasis that people are essential to everything being done in the bank.

The core values of National Bank Limited are: 1. Integrity ? NBL protects and safeguards all customer information. ? NBL treats everyone in an equitable and consistent manner. ? NBL creates an environment which earns and maintains customer trust. 2. Open communication ? NBL builds customer relationships based on integrity and respect. ? NBL offers a full line of products and excellent service. ? NBL is committed to the prosperity of the customers and shareholders. 3. Performance driven ? In NBL, customers and employees are judged in terms of their performance. . Continuous self improvement ? Continuous learning, self-challenge and strive make ways for self improvement of workforce at NBL. 5. Quality ? NBL offers hassle free better service timely. ? NBL builds-up quality assets in the portfolio. 6. Team work ? Interaction, open communication, and maintaining a positive attitude reflect NBL’s commitment to a supportive environment based on teamwork. 7. Integrity ? NBL protects and safeguards all customer information. ? NBL treats everyone in an equitable and consistent manner. NBL creates an environment which earns and maintains customer trust. 8. Open communication ? NBL builds customer relationships based on integrity and respect. ? NBL offers a full line of products and excellent service. ? NBL is committed to the prosperity of the customers and shareholders. 9. Performance driven ? In NBL, customers and employees are judged in terms of their performance. 10. Continuous self improvement ? Continuous learning, self-challenge and strive make ways for self improvement of workforce at NBL. 11. Quality NBL offers hassle free better service timely. ? NBL builds-up quality assets in the portfolio. 12. Team work ? Interaction, open communication, and maintaining a positive attitude reflect NBL’s commitment to a supportive environment based on teamwork. 2. 6 Strategy and Strengths National Bank’s goal is to become a leading provider of integrated financial services for small and medium-sized enterprises (SMEs), institutional investors and high net-worth individuals in Bangladesh. The Bank intends to achieve this central goal by taking the following measures:

Strategic Direction and the Challenges of the Bank Although the immediate outlook for the local operating environment is expected to be turbulent, the Bank intends to continue its growth momentum through the initiatives and strategic priorities set out in the Corporate Plan. The Bank is well positioned to mitigate the risks posed by the potential volatility of macroeconomic conditions in the country. The Corporate Plan and the Budget is a mid term plan, yet to be prepared annually covering a period of five years on a rolling basis.

This year the Bank prepared the plan for the period covering the years unto 2010. The strategic direction of the Bank is critically reviewed by the Management as well as by the Board at the time of preparing and approving the Corporate Plan and the Budget. In keeping with the Vision and Mission statement of the Bank, the strategic direction has been clearly identified and laid down in the Corporate Plan. It detailed out SWOT analysis of the Corporate Banking, Personal Banking, Treasury, Information Technology, Human Resources Management and Bangladesh Operations of the Bank.

Besides, it spells out Goals and Objectives of these main segments along with detailed action plans with specific time frames to achieve them. The Corporate Plan and the Budget has immensely contributed in guiding the organization to its present level. Further, it has contributed in guiding the organization to its present level. Further it has contributed to building up the target driven culture across the organization and leading to record superlative performance and to maintain the pre-eminent position in the banking industry.

Strong branch network, committed to ensure high customer service, true accountability, efficiency and loyalty of all sorts of stakeholders and customers are their main strength to success, in line with their strategic direction. Priorities identified in the Corporate Plan to be implemented: ? Enhancing national and international presence as envisaged in the Vision of the Bank. ? Consolidation of the Bangladesh Operations by opening more branches. ? Maintain the most preferred bank status for Trade Finance. ? Increase the present credit card base. Improve exchange turnover and market share. ? Improve the quality of advances and overall asset portfolio. ? Expanding the remittance business further in the Middle Eastern countries and some parts of Europe. ? Improving the risk management infrastructure. ? Improving the key performance ratios. ? Expanding credit and support services to the SME sector. ? Increasing the contribution from fee based operations. ? Adhere to comply with all the regulations. ? Focus the new business by taking the opportunities favoring the Bangladesh economy. 2. Corporate Governance Corporate Governance of National Bank is defined as the framework by which the Bank is directed and controlled and the relationships between the management, the Board of Directors, Shareholders and other stakeholders, such as employees, clients and lenders. The aim of the Corporate Governance framework is to ensure disclosure and transparency, to define the responsibilities of the Board and Management, to define the rights and role of shareholders and stakeholders, to ensure the equitable treatment of and to avoid conflicts of interests.

The bank has a special section on its website for Corporate Governance. 2. 8 Organizational Hierarchy of NBL 2. 9 Functional Aspects of NBL Banks are identified by the functions they perform in the economy. In modern times, the commercial banks undertake diverse functions and it is getting increasingly difficult to distinguish the commercial banks from other banks and financial institutions in terms of their nature of function. As a commercial bank, National Bank Bangladesh Limited performs the following functions: ) Acceptance of deposit: one of the principal functions of commercial banks is the collection of deposits through various types of deposit accounts such as current account, savings bank account, short term deposit account; fixed deposit account etc. deposits collected through such accounts constitute the major source of finance for commercial banks. 2) Granting of loans and advances: The main business of commercial banks is to provide loan facilities both short term and long term to trade, commerce and industrial enterprises. ) Offering of payment services: Commercial banks support the payment system by issuing cheques, drafts, payment orders etc. 4) Creation of deposits: Commercial banks create deposits through lending and influence the money supply position of the economy. 5) Making investment: Commercial banks invest their surplus fund in various securities such as treasury bills, bonds, debentures, shares etc. 6) Financing imports and exports: Commercial banks provide financing facilities and payment services for international trade such as imports and exports. ) Foreign exchange transaction: Commercial banks participate in sale and purchase of foreign currencies. 8) Fund transfer services: Commercial banks transfer fund from one place to another through mail transfer, telegraphic transfer, bank drafts etc. 9) Discounting services: Commercial banks provide bill discounting services to its customers. 10) Trust services: Commercial banks provide trust services by way of undertaking administration and management of financial affairs and property of individuals or business firms in return for a fee. 1) Safe keeping and locker services: Commercial banks offer locker services for safe keeping of valuables of its customers. 12) Guarantee and indemnity service: Commercial banks issue guarantee and indemnity services to its customers. 13) Financial advising: Commercial banks provide financial advisory services to the clients involved in industrial or business enterprises. 14) Other services: • Sale and purchase of shares and securities on behalf of its customers. • Merchant banking services, lease financing, house financing etc. • Issuance of credit cards, debit cards, ATM services etc. . 10 Divisions of National Bank Limited 2. 11 Corporate Social Responsibility Corporate social responsibility is fast gaining acceptance as the contribution that business can and should make voluntarily towards environmentally sustainable and socially equitable development. Beyond the financial targets and growth, they are also very conscious about their social responsibility. They always remain associated with the development of education, healthcare, sports and culture and extended their hands to mitigate the suffering of humanity during any disaster. Employment

NBL has been continuously creating new fields of employment every year by way of expanding its business activities and branch network. In 2009, the bank created employment for 305 personnel. Education National Bank Foundation was established in 1989 for fulfilling responsibilities towards welfare of the society. National Bank Public School and College in Moghbazar, Dhaka has been established where about 1140 students are studying. The bank has been accommodating prospective graduates of recognized universities for completing their internship. National Bank Limited also awards stipends and scholarship to the brilliant children of the employees f the bank. Sports and Cultural Activities National Bank has a tradition of patronizing and sponsoring sports and culture of the country. The “National Bank Volleyball League-2008” was arranged under the patronage of the bank. NBL has been arranging annual picnics for its executives, officers and staffs. Disaster Relief NBL always extends its helping hands and stands by the suffering and helpless people in times of natural calamities. NBL has contributed Tk 10 lac to Prime Ministers Relief Fund for Aila cyclone victims. Contribution to National Exchequer

National Bank has contributed significantly to the government effort in collection of revenue. In 2009 it has contributed to national exchequer an amount of taka 1,376. 06 million as tax and VAT on its earnings. Besides the bank deducted tax, vat, excise duties etc. from various payments and deposited the same to government exchequer. Contribution to martyred Army officers killed in BDR carnage National Bank has contributed significantly and continuously to the government for the Martyred Army Officers killed in BDR carnage. In 2009 NBL has contributed over Tk 55. 25 lac for the officers killed in BDR carnage. 2. 2 Products and Services of NBL Deposit Products Current deposit (CD): Current account means any account which pays no interest but from which the customer can withdraw money when he wants through cheques. Overdraft facility is a unique feature of this account. NBL offers this service to facilitate day-to-day business transaction. Typically, this service is widely enjoyed by business organizations. To enjoy this facility from NBL, client must maintain a minimum balance of Tk 2000 in his account and pay Tk. 800 as yearly service charge. Standing instructions arrangement is available for opening all types of accounts in National Bank Limited.

Short-term deposit (STD): Short-term deposit is a kind of current account in which clients often keep a large balance in their account for some days and the bank may offer a lower rate of interest on the balance for that period. In short, it is current in nature but savings in use. NBL offers this service with 2%-4% interest. To get benefit from this account, the customers must keep his withdrawals limited. Its required minimum balance is Tk 2000 and yearly charge is Tk 800. Savings deposit (SB): Savings deposit may be defined as the account that provides interest to the client on their average balance.

It imposes some restrictions on withdrawals. It is suitable for those who want to save a certain amount of their income, earn interest on that and withdraw the deposits when necessary. In NBL, customers get 4. 50% interest on their balance and can withdraw 4 to 6 times a week. To maintain this account with NBL, client must maintain a minimum balance of Tk1000 in his account and pay Tk400 as yearly service charge. Fixed Deposit: National Bank Limited offers fixed term savings that will scale up your savings amount with time. Some benefits of this account are i) Any amount can be deposited; i) Premature encashment facility is available; iii) Overdraft facility available against term receipt. Rate of Interest on Fixed Term Deposit |Serial |Maturity of Deposit |Rate of Interest | |1 |FDR for 1 month and above but less than 3 months |5. 00% | |2 |FDR for 3 months and above but less than 6 months |Below 25 lacs |7. 5 % | | | |25 lacs and above |8. 00% | | | |50 lacs and above |8. 25% | | | |Above |8. 25%-9. 00% | |3 |FDR for 6 months and above but less than 1 year |Below 50 lacs |8. 0% | | | |50 lacs and above |8. 25% | | | |1 crore and above |8. 50% | | | |Above |8. 50%-9. 00% | |4 |FDR for 1 year and above |Below 1 crore |8. 0% | | | |1 crore and above |8. 75% | | | |Above |8. 75%-9. 00% | NBL-Monthly Savings (NMS): This scheme is designed for those who want to deposit a specific amount per month with a view of getting a significant sum at the end of the term. It can be opened for three, five and eight years whose interest rates are 9. 00%, 9. 25% and 9. 0% respectively. No chequebook or passbook is provided against this account. If client wants to close this account before maturity, he will get interest similar to the normal savings accounts at 4. 50%. Clients have to deposit the specified amount within first ten days of each month. |Serial |Monthly Deposit |Return at the end of the period (fig. in Tk. ) | | | |After 3 years |After 5 years |After 8 years | |1 |500/- 20,627/- |37,896/- |70,849/- | |2 |1000/- |41,255/- |75,791/- |1,41,697/- | |3 |2000/- |82,510/- |1,51,583/- |2,83,394/- | |4 |3000/- |1,23,765/- |2,27,374/- |4,25,091/- | |5 |4000/- |1,65,020/- |3,03,166/- |5,66,788/- | |6 |5000/- |2,06,274/- |3,78,957/- |7,08,485/- | |7 |10000/- |4,12,549/- |7,57,914/- |14,16,970/- | Special Deposit Scheme: For most of the people of fixed income the opportunity to supplement their monthly earning is a golden one. And NBL Special Deposit Scheme gives a customer just that. Under the scheme, customers can deposit money for a term of 3 years. The deposited money is fully refundable at the expiry of the term. At the same time, during the term period they can enjoy a monthly profit corresponding to their deposited amount. Serial |Amount of Deposit (Tk) |Monthly Benefit (Tk) | |1 |50,000 |450 | |2 |1,00,000 |900 | |3 |2,00,000 |1,800 | |4 |3,00,000 |2,700 | |5 |4,00,000 |3,600 | |6 |5,00,000 |4,500 | |7 |10,00,000 |9,000 | |8 20,00,000 |18,000 | |9 |50,00,000 |45,000 | Foreign Currency Account: National Bank Limited gives opportunity to maintain foreign currency account through its Authorized Dealer Branches. Bangladesh nationals residing abroad or Bangladesh and foreign firms operating in Bangladesh or abroad or Foreign missions and their expatriate employees are entitled to get this service. Some benefits of this account are – ? No initial deposit is required to open the account. Interests will be offered 1. 75% for US Dollar Account, 3% for EURO Account and 3. 75% for GBP Account. ? They will get interest on daily product basis on the credit balance (minimum balance of US$ 1,000/- or GBP 500/- at least for 30 days) maintaining in the account. Credit Products Cash Credit: Under this system, the bank specifies a limit, called cash credit limit, for each customer, up to which the customer is permitted to borrow against the security of tangible assets or guarantee. It is generally granted for one year with renewal facility. The borrower can borrow up to cash credit limit when necessary and can adjust the outstanding amount at his preferred time.

In this case, interest is charged only on outstanding balance not on full loan amount sanctioned. The client opens an account with the bank and the loan amount will be deposited in that account. Cash credit is generally given to traders, industrialists for meeting their working capital requirements. The primary security of cash credit facility is stock of goods, which may be hypothecated or pledged to the bank. Overdraft: NBL offers overdraft facility for corporate customers for day to day business operations. An overdraft occurs when withdrawals from a bank account exceed the available balance. Overdraft is always allowed on a current account operated upon by cheques. The customer may be sanctioned a ertain limit within which he can overdraw his current account within a stipulated period. In this case, interest is charged only on outstanding balance not on full loan amount sanctioned. Overdraft facility is generally granted to businessman for financing work capital requirement and high net worth individual to overcome temporary liquidity crunch. Secured overdraft (SOD): Secured overdrafts are overdrafts extended upon customers pledging their Time Deposits (FDR, NMS), Bonds, Unit Trusts or Properties as collateral to the bank. Working Capital Loan: Working capital loans provide businesses with short-run credit, lasting from a few days to about one year.

Working capital loans are most often used to fund the purchase of inventories or to purchase raw materials. Working capital loan is designed to cover seasonal peaks in the business customer’s production levels and credit needs. These loans are generally secured by accounts receivable or by pledges of inventory. Term loans: Term loans are the credit extended for longer than a year and often used to purchase capital assets. They are designed to fund long and medium – term business investments such as the purchase of equipment or the construction of physical facilities. Usually the borrowing firm applies for a lump-sum loan based on the budgeted cost of its proposed project and then pledges to repay the loan in a series of installments.

Term loans normally are secured by fixed assets owned by the borrower and may carry either a fixed or floating interest rate. Under this system, loan amount is given in the client account maintained with the bank and issued through cheques or pay order or any other appropriate forms. Housing loan: NBL offers home facility for constructing house or purchasing apartment and extension, renovation, repairing of existing house. National bank has launched two types of specialized “housing loan” product, one for long term and the other for short term to meet the demand of the customers in general. The product has been made attractive by adopting hassle free and easy availability.

Since introducing the scheme in 2007, the bank sanctioned Tk. 939. 65 million under NBL housing loan scheme and Tk. 41. 00 million under small house loan. Consumer loan: NBL consumer durable loan is a personal loan scheme for purchasing various consumer durables such as television, refrigerator, air conditioner, Hi-Fi system, washing machine, computers and other household furniture etc for family use. The product is a term financing facility to individuals to aid them in their purchases of consumer durables or services. The facility becomes affordable to the clients as the repayment is done through fixed installments commonly known as equal monthly installment (EMI).

Education loan: NBL education loan is a partially secured and terminating loan facility for students/teachers to support their admission/tuition fees, semester fees, study at home/abroad. This scheme is for meeting the fund requirement for higher education of children of salaried persons. Bank would finance against gross monthly income of the credit worthy individual. Professional loan: NBL loan for professionals is a partially secured and terminating loan facility (EMI based) for professionals only to support their small scale purchase of different equipment, tools and small machineries for installation at their offices. Bank would finance against gross monthly income of the credit worthy individual.

Target customer for this product is the established doctors, engineers and teachers or highly qualified other professional of the society. Any purpose loan: NBL any purpose loan is an unsecured and terminating loan facility (EMI based) for any legitimate purpose such as interior decoration. Marriages in the family, advance rental payments, emergency medical treatment, trips abroad etc. This loan is unsecured in the sense that only security in this type of loan product are (1) letter of introduction from the employer or (2) transfer of monthly salary and assessment of terminal benefits or (3) personal guarantee taken from specific section of people. Any purpose loan’ means the applicant does not have to declare the purpose for which he/she is taking the loan; hence there will be no hypothecation over the assets to be purchased. SME loan: Small and Medium Enterprise (SME) remains the engine of growth in the emerging economy. NBL underscores the importance of this financing in terms of national outlook and conquered a milestone in SME financing. In line with that, the bank expanded financing activities through its large network of 121 branches and 10 SME service centers attracting entrepreneurs in various fields of trade and industry. Recently NBL has launched another two products namely NBL weaver’s loan and Nari jagoron for women entrepreneurs.

Agriculture loan: echoing with the national policy direction for growth of rural economy, the bank has been providing collateral free loans to landless and marginal farmers to acquire seeds, fertilizer, irrigation facility, agro equipment etc for better crop cultivation. The Bank has also been financing in fish, poultry and livestock farming sectors. The bank financed an amount of Tk338. 88 million in 2009 to 64127 borrowers while it was Tk325. 30 million to 61862 borrowers in 2008. Syndicated loan: National Bank gives priority in the loan syndication both as a lead and as a participating bank for large borrowers. The modality of syndicated finance enables the banks to diversify the credit portfolio.

The syndicated finance creates opportunity for risk sharing and standard of credit remains on the higher end because of co-appraisal by the multi-banks/ financial institutions. In 2009 Tk8565 million was approved under 16 deals in the different sectors of the economy like textiles and spinning, RMG, pharmaceuticals, power plant and food processing. Lease financing: As part of diversification of credit products, National bank has introduced lease financing scheme and can be availed from any branch of the bank. To assist a large group of people especially industrialists, business entities or individuals the scheme is designed in a trouble-free and easy mode.

The scheme facilitates to acquire capital machinery, equipment, medical instrument, automobile, CNG refueling machinery and customer durables etc. Besides the demand of consumer durables by the individuals, industrial entrepreneurs are showing much interest in lease financing to increase production, restructuring through BMRI etc. The bank has already sanctioned Tk. 604. 20 million up to December 31, 2009 under lease finance scheme. Import finance: NBL provides comprehensive banking services to all types of commercial concerns for import purpose. National bank’s major forms of import finances are Import L/C, loan against imported merchandise (LIM), Loan against trust receipt (LTR) and Payment against document (PAD), etc.

Letter of credit: Letter of credit is a document by which a bank on behalf of its customer provides guarantee of payment for imported merchandise to the supplier when conditions specified in the document are met. It is non – funded loan where bank does not give any cash money to the client but gives a guarantee of payment in case of default of customers. The bank opened a total number of 24385 LCs amounting USD 1117. 61 million in import trade in 2009. Payment against document (PAD): PAD is created upon lodgment of import documents. This loan is created for a specified time. After this time, if the importer does not take the documents from bank, the bank may sell the imported goods to recover the given amount. Loan against imported merchandise (LIM): This loan is issued against imported goods.

In this case, the imported merchandise is kept under the control of bank and importer takes delivery of merchandise by making payment in cash. Typically, this loan is adjusted between 45 to 60 days. Loan against trust receipt (LTR): Loan against trust receipt is like LIM. This facility is kept limited for the valued customers and no margin is asked for. The loan holder takes delivery of goods from bank by submitting trust receipt and gives assurance that payment will be made after selling the goods. In this case, the bank has no control over the imported goods. Export finance: The bank has been nursing the export finance with special emphasis. In 2009, it handled 18761 export documents valuing USD 559. 8 million with a growth of 5. 41% over the last year. National bank’s major forms of export finances are export L/C, packing credit, export cash credit (ECC), foreign documentary bill purchased (FDBP), etc. Export L/C: The purpose of such a credit is to meet working capital needs starting from the point of purchasing raw materials to final shipment of goods for export to foreign country. Packing credit: This is available to the exporters, for financing purchase, processing, manufacturing or packing of goods. This would mean any loan or advance extended to you by the bank on the basis: ? Letter of credit opened in favor of exporter by an oversea buyer. A confirmed and irrevocable order for the export of goods from buyer. ? Any other evidence of an order placed on the exporter. Packing credit is granted for a period depending upon the circumstances of the individual case. Export cash credit (hypothecation): Under this arrangement the bank sanction the loan to the first class exporter, as there is no security against this loan. The letter of hypothecation creates a charge against the merchandise in favor of the bank but neither the ownership nor the possession is passed to it. Export cash credit (pledge): Under this arrangement the bank advance loan to the exporter against pledge of raw materials or exportable goods.

The exporter surrenders the physical possession of goods under the bank’s control till the payment of dues is made. If the exporter does not pay the loan the bank can sell the exportable goods to recover the credit. Foreign documentary bills purchased (FDBP): Incase of deferred L/C the payment is usually received after a certain period, say 90 – 180 days. In that case the party (exporter) sometimes wants to negotiate bills with the bank, for incise or need of money. In FDBP bank negotiates the bills and documents to adjust the packing credit (PC) or back to back L/C payment and gives the rest of the amount to the client in cash or by crediting his account.

In this process the negotiating bank collects acceptance letter from the payment bank and purchase the export bills at the usual rate of currency. FDBP is created only for foreign documents. Local documentary bills purchased (LDBP): It is created only for the local export documents. Local exporters are usually small one and act as backward lineage industry to the large foreign exporters. So, incase of deferred L/C (usually done in textiles/garments) the exporters would want to negotiate the bills for quick receiving payments. The negotiating bank checks the documents thoroughly and transfers the discounted value of bills by converting it into Bangladeshi taka at the current rate. This temporary liability is adjustable from the proceeds of the bills.

Project finance: Project finance is the long term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of the project sponsors. Usually, a project financing structure involves a number of equity investors, known as sponsors, as well as a syndicate of banks that provide loans to the operation. The loans are most commonly non-recourse loans, which are secured by the project assets and paid entirely from project cash flow, rather than from the general assets or credit worthiness of the project sponsors, a decision in part supported by financial modeling. The financing is typically secured by all of the project assets, including the revenue producing contracts. Rate of Interest on Credit Products Serial |Category of loan |Lending rate | |1 |Cash credit (CC) |13-16% | |2 |Overdraft (OD) |13-16% | |3 |Secured overdraft (SOD) |10-16% | |4 |Working capital loan |13-14. 5% | |5 |Term loan |13-14% | |6 |Housing loan |13% | |7 |Consumer loan 16% | |8 |Education loan |16% | |9 |Professional loan |17% | |10 |Any purpose loan |17% | |11 |SME loan |16% | |12 |Agricultural Loan/Micro loan |10-13% | |13 |Syndicated Loan |13% | |14 |Lease financing |13-16% | |15 |Import finance |13% | |16 |Export finance |7% | |17 |Project finance |13-16% | Other Products and Services Cards: For easier and risk free financial transaction, the bank has credit and debit cards. Users of NBL credit card and power card are increasing remarkably; presently there are more than 25000 power card holders. Credit card: NBL Credit Card is accepted in many merchant outlets around the world.

Our wide range of merchants include hotels, restaurants, airlines and travel agents, shopping malls and departmental stores, hospitals and diagnostic centers, jewelers, electronics and computer shops and many more. Benefits: ? Dual currency card facility ? Lowest rate of interest. ? Lowest card fees ? One can transfer 80% amount of his local card limit to any NBL A/c or have pay order facility ? No excess limit charge ? No hidden charges Power card: NBL power card is the first debit card for which you don’t have to maintain any account with any of our branches. Benefits: ? It is a pre-paid card ? Annual/renewal fee is Tk. 200/- only. ? Maybe issued and refilled from FC account. ? Accepted at all VISA POS merchants. ? Cash withdrawal at all ATM booths bearing VISA and Q-cash logo (except HSBC in Bangladesh) ?

Drawing of cash: o From NBL ATMs – free of charges o From ATM under Q-cash network – Tk. 10. 00 per transaction o From other ATM – Tk. 100. 00 per transaction. ? Cash withdrawal fee (abroad) – 2. 00% on the cash drawn amount or US $ 2. 00, whichever is higher. ? Only 1% loading fee against both international and local power card at the time of refilling. ? Yearly Tk. 100 for enrollment of SMS service. Foreign remittance: National bank took every step to ease the expatriate Bangladeshis in remitting their hard earned money. Subsequently, the bank expanded their service through exchange houses, subsidiary companies, correspondence arrangements, etc.

Joining with the world’s largest money transfer service “Western Union”, NBL has introduced Bangladesh to the faster track of money remittance. Now, money transfer between Bangladesh and any other part of the globe is safer and faster than ever before. This simple transfer system, being on line, eliminates the complex process and makes it easy and convenient for both the sender and the receiver. Through NBL – Western Union Money Transfer Service, your money will reach its destination within a few minutes. With the passage of time, NBL earned the confidence and trust of wage earners and successfully handled a sizeable volume of remittance. In 2009, foreign remittance through NBL was USD 645. 97 million showing an increase of USD 63. 0 million over the previous year, at a growth rate of 11%. Capital Market Services: As a diversified activity, NBL capital market services started its operation in January 2008 with modern infrastructural facilities. The services include operating of BO account, depository services of CDBL, trading in share market, financing the clients under margin rule and counseling the investors. Locker service: The locker service with National Bank Limited ensures the safe keeping of customers’ valuables. Key Benefits: o Wide availability. o Lockers available in various sizes i. e. small, medium and large with varying rents. o Lockers are rented out for a minimum period of one year. Rent is payable in advance. The rent may conveniently be paid from your deposit account o Direct debits for locker rentals from your account rid you of the hassle of writing out cheques. Eligibility: An individual (not minor), firms, limited company, associations, clubs, trusts, societies etc may hire a locker. Merchant banking: NBL is playing an effective role in capital market of the country and remains engaged in various activities related to IPOs such as banker to the issue, underwriting etc. in 2008 NBL has earned an amount of Tk. 3. 98 million from this arena. Total investment of the bank in the capital market as on 31. 12. 08 was Tk. 2, 346. 9 million consisting of primary and secondary market for Tk. 227 million and Tk. 2, 119. 9 million respectively. A total amount of Tk. 143. 9 million was earned from the sell and purchase of shares in the year under review. On the other hand, NBL has earned a total amount of Tk. 44. 12 million as cash dividend from the shares of different companies. NBL purchased a membership of the Dhaka Stock Exchange Limited (member no. 203) and got registration as NBL Capital Services and became a corporate member of DSE. Off Shore Banking: Off shore Banking is a unique solution for banks across the globe to carry out international banking business involving non – resident foreign currency denominated assets and liabilities taking the advantages of low or non existent taxes/levies and higher return on investment.

Alongside the presence in the commercial hubs of the country, NBL has taken a position to extend its network in the special export processing zone created for foreign investors and local entrepreneur engaged in 100% export based industry. Under the license issued by Bangladesh Bank NBL opened its first Offshore Banking unit in 2008 at Mohakhali Branch, Dhaka adding a new dimension in its customer friendly business activities. 2. 13 Five Years Financial Summary of NBL Chapter: 3 Overview of NBL, Muradpur Branch Name of the branch: National Bank Limited Muradpur branch, Chittagong Date of launching: 19th November 2006 Location: 95, Muradpur, Panchlaish, Chittagong

Tel: 031-2551448-9, 88-031-255148, 01713-335826 Head of Branch: Mr. A S M Helal Uddin, AVP Second in charge: Jamal Uddin Chowdhury, SPO Number of employees: |Total |16 | |Officer |10 | |Staff |6 | Organizational Structure of Muradpur Branch Chapter: 4 Performance of the Bank Regarding Customer Satisfaction 4. 1 Introduction We are all in business of customer satisfaction. Everybody makes their living selling something to someone, whether its goods or services. Most of us have many customers, at all levels of business, both inside and outside the organization we are working in. n today’s competitive and intelligent marketplace, almost everyone has a satisfactory product, because hardly anyone is building an unsatisfactory one. So how do we get our leg-up in the competition? The answer lies in knowing our customers not just as companies, but also as people who buy our products and services. Over the past few years, discerning executives have recognized that loyal customers are the lifeblood of their business, and the key to developing long-term competitive advantage. Now is the time to jump at the opportunity and get ahead of the curve. Looking up to their needs and how they think about the product or services, help us in providing them with better service.

The ability to accurately identify and satisfy our primary customers is therefore the key ingredient of our success in the world of work. The following strategies must be applied in terms of providing better service to the customers and thereby giving them satisfaction: ? We must never focus on money. Money will come to us once we manage our business well and satisfy our customers. So, creating a strategy of serving our customers better than our competitors will surely make the profits roll in. ? We must never abandon our customers after the first sale. If we want repeat business then we need to understand that our first sale was just the beginning of a good sales strategy. The second sale will depend upon how good our products or services were, what values we added.

At all times we must provide our customers added value, anticipate their needs and follow up with them. ? We must never forget to include our customers’ opinion to our strategic decisions. We must always try to get our customers involved. ? We must always communicate frequently with customers. ? We must always give more to the customers than they actually paid for. We don’t have to go overboard to the point of harming our class flow, but extras do count for maintaining a healthy customer relationship. We have to find out what our customers value and thereby go the extra mile. ? We must always consider our customers’ recommendations. If we choose to use their suggestions, we must be sure to let them know. We must be accountable. In case of any complaints against any employee who caused dissatisfaction, the employee must always find the solution to his/her customers’ problem. The employee must make himself/ herself accountable to correcting those difficulties. ? We must never carve policies in store. There are so many situations that occur during the course of a business day. We must always keep in mind that, special circumstances can, and do, arise often. When the situations warrants, we must be flexible with our company’s policies. ? We must always improve our customer’s perception. Perception is reality. The way our customers feel about us is their reality.

We must make sure to illustrate an image that we want them to have about us. We must always use customer service in the branding of our business and services so that we become unique and special. So, keeping these strategies in mind we must always try to help gain our customers’ utmost satisfaction, because the best customers are the repeated ones. As we look at our customer service strategy, we must be sure to include flexibility, creativity and the constant adding of valuable services. We must always remember that the customers’ success is the organization’s success! 4. 2 Customer Value and Customer Satisfaction Customer delivered value is the difference between total customer value and total customer cost.

Total customer value is the benefits customer’s expect from a given product or service. Total customer cost is the bundle of costs total customer expects to incur in evaluating, obtaining, using and disposing of the product or service. Satisfaction is a person’s feeling of pleasure or disappointment resulting from comparing a product’s preserved performance (or outcome) in relation to his or her expectation. Satisfaction is the function of perceived performance and expectation. If the performance falls short of expectations, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectation, the customer is highly satisfied or delighted.

From the above discussion it is really mentionable that in a bank customers are coming to take service with the benefits they are offered. These benefits must make them think that they are offered the best than the others. If the interest rate of loan’s high than the other banks it may make them dissatisfied and they will switch to other service provider instead of the existing bank for further loan. The same goes for deposits. If interest rates are low then the customers will become dissatisfied and they will seek better rates in other banks even though other benefits offered by the existing bank are higher. So, customer should be kept with an attractive interest rate as well as other benefits and facilities. 4. 3 Measuring Customer Satisfaction

From these analytical I am mainly trying to focus on the customer satisfaction level of NBL, Muradpur Branch. Gaining customer satisfaction is not so easy. To know the satisfaction level at first, one needs to measure it by using different tools and technique. Each one is not perfect for all situations but one should apply the best one during the measurement of the satisfaction level. Customer satisfaction may be measured in the following way- i) Customer Satisfaction Surveys Responsive Banks measure customer satisfaction directly by conducting periodic surveys. They send questionnaires or make telephone calls to a random sample of recent customers. They also solicit buyers view on their competitor’s performances. ii) Complain and Suggestion Systems

A customer-centered organization makes it easy for it’s to deliver suggestion and complain. Some customer centered Banks established hot lines with toll free telephone line, also adding web pages and e-mail to facilitate communication. These information flows provide companies with many good ideas and enable them to act quickly to resolve problems. iii)Ghost Shopping Companies can hire persons to pose as potential buyers to report on strong and weak points experienced in buying the Bank’s and competitor’s product. These mystery shoppers can even test whether the company’s sales personnel can handle various situations as well. iv)Lost Customers Analysis

Companies should contact customers who have stopped taking services or who have switched to another Bank to learn why these happened. Not only is it important to conduct exit interviews when customers stop taking services, but also it is necessary to monitor the customer loss rate. If it is increasing then it indicates clearly that the company is failing to satisfy customers. 4. 4 Attracting and Retaining Customers Today customers are harder to please. They are smarter, more price conscious, more demanding, less favoring and approached by more competitors with equal and better offer. The challenge is not to produce satisfied customers; several competitors can do this. The challenge is to produce loyal customer. Customer Loyalty

In case of Muradpur Branch those who are highly satisfied are considered as the loyal customers. They know the all the problems the branch has been suffering from, yet they still remain as highly satisfied customers. A highly satisfied customer: ? Stays longer with the branch ? Buys more as the bank introduces new products and upgrades existing products. ? Talks favorably about the Bank and its new products. ? Pays less attention to other competing banks, to advertising and is less sensitive to the interest rate. ? Offers product, service or ideas to the company. ? Costs less to serve than new customers because transactions are reutilized. Percentage of Loyal Customers:

Here customer loyalty rate is 20%; whish is very low in comparison to other satisfied customer. A satisfied customer is not guaranteed to stay forever and can switch any time when getting better offer from other banking. So the branch should try best to increase the loyal customer and retain the existing loyalty. |Nature of the customers |Satisfied customers |Loyal customers (highly |Dissatisfied customers | | | |satisfied customers) | | |No. of customers |67% |20% |13% | 4. Resource Position Indicating Satisfaction Level Muradpur Branch owned the following deposit including Bills payable and Demand Draft, Loans and Advances, cash-in-hand and profit of last six months from October 2008 to March 2009. I collected this valuable information during my internship period and I think it is sufficiently helping to focus on the customer satisfaction level, relating the accounts number with the deposited amount. Here, we see deposit is in increasing trend from October 2008 to March 2009. Loans and advances fell during November 2008, but after that it was increasing trend till February 2009 and fell slightly during March 2009. (Taka in Thousand) Month |Deposit including B/P and|Loans and Advances |Cash in Hand |Profit | | |DD | | | | |October |195257888. 59 |63722670 |24911193 |2540436. 28 | |November |210627328. 17 |58149594 |7793107 |2714905. 87 | |December |2109000. 00 |67000000 |5301403 |3591000. 00 | |January |237331167. 0 |70717153 |1077693 |482420. 38 | |February |245395403. 97 |75495171. 51 |2613841 |505145. 08 | |March |254159425. 81 |70179343 |7670955 |1478938. 36 | (Source: Secondary Data) Change in Deposit: Here it is important to say that the account number of this branch is increasing rapidly and the total deposited amount is also increasing but at a lower rate. Better service and product with modified existing offers can increase the deposit amount.

So, this branch needs to introduce new offers with new ideas and providing more facilities with the existing benefits. Change in Loan and Advance: Here like the deposit through the account number of this branch is increasing rapidly but the total loan and advances amount is not steady and sometimes it is fluctuating and even decreasing. Better service and product by modifying existing offers can increase the loan and advance. So, this branch needs to introduce new offers with new ideas and providing more facilities with the existing benefits. They should offer attractive interest rate by reducing profit at a margin rate. Changes in Account Number:

The number of account of this branch is not steady. It can be increased more rapidly by taking necessary actions such as advertisement campaign, providing better services, offering new products establishing ATM booth. |Months |October, 08 |November, 08 |December, 08 |January, 09 |February, 09 |March, 09 | |No. of Account |83 |104 |71 |296 |92 |97 | We can conclude that even though total no. of account increase but it does not actually represent a sound situation of the branch. The total deposit of the branch is not in a stable position.

To make the resource position of the branch a stable one, at first, we have to increase our loyal customers by providing superior banking facility. Also by increasing the deposit and new customers, we can gain the top position in banking service. 4. 6 SWOT Analysis of Muradpur Branch (From customers’ point of view) |Strength |Weakness | |Manpower is better to deliver quality service |High rate for loan and low rate for deposit | |Strong corporate identity |Absence of E-banking, online Banking, SME Banking etc. |Distinct operating procedure |Not well equipped to compete. | |Efficient performance |Less innovative products. | |Young enthusiastic performance |Lack of customer confidence | |Empowered work force |Working environment is uncomfortable | |Companionable environment |Low remuneration package. | |Usage of faster PC bank software |Poor infrastructure |Co-operation with each other |Lack of sufficient and skilled officer | |Good banker customer relationship |Reluctant to advertise | |Introducing ATM card |Back dated system | |International credit cards |It has no IT specialists | |Efficient information |Lack of proper maintenance of records. | |Western Union Money Transfer service is faster than other banks. | | |Opportunity |Threat | |It achieved its deposit target very quickly. New banks are more technologically developed | |It will introduce online banking |Default culture | |Experienced manager |Other banks offer similar products | |Growth of sales volume |Offering alternative banking facilities by other banks. | |Countrywide network | | Chapter: 5 Analysis of Available Data Customer satisfaction is a very vast issue that requires thorough research and cannot be measured very easily.

During the survey of customer satisfaction, a sample size of 30 customers were interviewed who had come to bank for their different banking purposes. At the time of survey the factors that have been emphasized are the efficiency of the bank officials, time taken by the bank officials in terms of providing services, bank’s commitment towards its customers and many more. The analysis on the basis of the survey done through the questionnaire is as follows. 5. 1 From the view point of Customers 1. How long have you been banking with NBL? Findings: As the Muradpur Branch of National Bank Limited was established in 2006, the customers are not that many.

Out of the sample size of 30, 8 customers were found to be banking with NBL since the establishment, 5 of them for 2 years, 10 customers for the last 1 year and 6 months, another 5 of them about 1 year and 2 customers were found to be banking for less than 1 year. |No. of Customers |Percentage |Banking Duration | |8 |26. 7% |More than 15 years | |5 |16. 7% |2 years | |10 |33. % |1 year 6 months | |5 |16. 7% |1 year | |2 |6. 7% |Less than 1 year | |Total: 30 |100% | | 2. How frequently do you come to the bank? Findings: On asking this question, 14 customers responded that they have to come several times a week for various purposes.

It is not only regarding getting their work done but also to clear confusions that they face while fulfilling requirements. Again 6 customers out of sample size of 30 were found to visit the bank once a week, 5 customers said several times a month, 4 customers responded once a month and only 1 customer was found who hardly visits the bank. The table in the next page shows it all: |No. of Respondents |Percentage |Bank Visits | |14 |46. 47% |Several times a week | |6 |20. 0% |Once a week | |5 |16. 67% |Several times a month | |4 |13. 33% |Once a month | |1 |3. 33% |Very Less | |Total: 30 |100% | | 3. What influenced you to start banking with NBL?

Findings: During the survey it was found that out of 30 respondents, 22 respondents were influenced by customer service, 3 were influenced by word of mouth, another 3 respondents were influenced by easy location and 2 were influenced by facilities provided by the bank, salary accounts etc. 4. How efficient do you find the bank officials in terms of providing services? Findings: In this aspect, out of three options given in the questionnaire, 10% of the respondents agreed with “Not up to the mark”; 80% respondents agreed with “Very efficient”; and the rest 10% responded “Moderate”. 5. Do you get your problems solved immediately? Findings: In this case, the customers came up with some honest responses.

Among 30 respondents, 20 replied “Always”; 8 replied “Sometimes”; and 2 respondents replied “Never”. The negative response is a result of tremendous rush of clients and many other unavoidable circumstances that hampers the flow of work and thereby compels the clients to make repeat visits for the same purpose over and over again. This aggravates the situation eventually. The following graph gives a clearer view of the scenario. 6. Do you usually have to wait long to get your work done? Findings: This is a case where there were variation of thoughts and opinions. There happened to be different reasons at different points of time in terms of waiting to get the work done.

Sometimes customers had to wait for long hours due to tremendous rush, sometimes they had to wait for long hours when they came during the lunch hours, sometimes the inefficiency of the bank officials delayed them and sometimes the complicacy of the problem consumed all their time. Then again, sometimes customers were lucky enough when they came during the early hours of the bank when there were hardly any customers and got their work done instantly. So considering all these facts, in general, the responses of the customers were as follows: 7. Did you ever have to make repeated visits for the same problem at this bank? Findings: In this aspect, customers may make repeat visits in two situations.

Firstly, when they happen to be highly satisfied with the bank’s performance and secondly, when they have some pending work for a long time due to some confusion or due to the inefficiency of bank officials’ etc. the survey shows that out of the 30 respondents, 7 of them said “Yes, very few times”; 10 said “Yes, quite a few times”; 12 respondents said “Always” and only 1 said “Never”. The graph is shown below 8. Does the bank change rules too often? Findings: The rules in a branch cannot change unless any circular is issued by the Head Office of NBL. The rate of changing rules depends upon the decision of the Head Office of NBL. 53. 33% of respondents said “No”; while the rest 46. 7% responded affirmative. 9. Are you informed about the changes as soon as they are made?

Findings: In this case, 20% of the respondents answered “Always”; 53. 33% said “Sometimes”; while the rest 26. 7% of the customers said “Never”. This failure to inform the customers regarding the changes made by the bank occurs due to the customer’s sudden change in address or contact no. , which he/she failed to inform the bank. The chart gives us a better view of the scenario: 10. Do you think the bank should provide ATM facility? Findings: As there are no ATM facilities, 90% of the respondents found it necessary to establish ATM booths at convenient places and the rest 10% did not feel the necessity of establishing ATM booths. 11. Do you think the bank should provide online services?

Findings: Though online services have already been introduced by NBL, in some of its branches; the Muradpur branch has not yet introduced on-line services. From this survey, 95% of the respondents were on behalf of online services and only 5% thought they were not necessary. 12. How much time do you require to open an account with National Bank Limited, Muradpur Branch? Findings: It may differ on the account types, rush and cooperation of account holders. If there is no crowd in the bank and the officials fill up the application form for the account, then it takes less time then when filling up by applicants. People generally require 20 minutes to 45 minutes to open an account. 0% people were satisfied with the time it takes to open an account. 13. How much time do you require to have a cheque book issued? Findings: It depended on the crowd and volume of leaves of cheque books. A customer can receive a cheque book within 10 minutes to 1 day. 14. How much time do you need to get encashment of a cheque? Findings: The most crowded place in the bank is the cash counter. In peak hours a customer gets encashment of a cheque in 5 minutes to 15 minutes. On the other hand, in the early banking hours and at the free time a customer gets encashment of cheque within 1 minute to 1. 5 minutes. 15. How much time and cost do you need to get a statement of account?

Findings: There is no cost of getting a statement of account, which is not enjoyed in the other banks. A customer can get a statement within 3 minutes to 5 minutes. 16. How do you feel about the banker-customer relationship in National Bank Limited, Muradpur Branch? Findings: Out of 30 respondents, 10% answered “Very well”; 35% answered “Well”; 50% responded “Average”; and 5 % replied “Below average”. The chart below gives us a better view of the scenario: 17. How do you evaluate the overall performance of National Bank Limited, Muradpur Branch? Findings: Out of 30 respondents, 45% replied “Excellent”; 25% answered “Standard”, 15% responded “Good”; 10% answered “Average”; and 5% responded “Not up to the mark”. 5. From the view point of Bankers I asked the following questions with the help of questionnaire to evaluate the services provided to the customers to satisfy them. The findings from the survey are as follows: 1. How much time is required to open an account? Findings: The form of opening an account provided by the Bangladesh Bank, which must be followed by all the other banks of the country, is a comprehensive one. Bankers try to provide services to the customers quickly by taking the essential information and signature where necessary. But it will take much time to fill up the entire form and posting into the computer the information of the account.

Bankers consume a customer’s time of maximum 30 minutes in opening an account but it takes more than an hour to complete the whole procedure. Bankers always try to satisfy customers by opening an account swiftly. 2. How much time is required having a cheque book issued? Findings: Time required issuing cheque book depends on the number of leaves of cheque book. These cheque books usually contain 10, 20 and 50 leaves. A minimum of 10 to 15 minutes is required to issue a cheque book. Customers enjoy the privilege of getting free cheque books unlike in other banks where they have to pay every time they ask for a new cheque book. 3. How much time is needed for the encashment of cheques? Findings: A banker needs 1 to 1. minutes to pay encashment of a cheque, which is faster as compared to other banks. 4. How many days are required getting a loan proposal processed? Findings: A loan proposal requires 1 to 1. 5 months to get processed. 5. How do you feel about banker-customer relationship in National Bank Limited? Findings: 70% bankers responded “very well” 15% bankers responded “well”, 10% bankers responded “average” and 5% responded “below average” 5. 3 Services of Western Union Money Transfer I surveyed 10 regular customers of Western Union Money Transfer through face-to-face interviews and observations. The details of their perception about Western Union Money Transfer are as follows: 1.

Name- Irfat Jannat, Age- 19, Nature- Non A/C holder, Amount transacted- Tk 10000-Tk 60000, Profession-Student, Time required- 10 minutes, Consent- Highly satisfied. 2. Name-Rashna Sharmin, Age- 25, Nature- Non A/C holder, Amount transacted- Tk 10000-Tk 20000, Profession- Student, Time required- 15 minutes, Consent- Not satisfied 3. Name- Rokeya Begam, Age- 50, Nature- Non A/C holder, Amount transacted- Tk 100000-Tk 300000, Profession- Housewife, Time required- 15 minutes, Consent- Satisfied with objection 4. Name- Md Delwar Khan, Age- 60, Nature- Non A/C holder, Amount transacted- Tk 25000-Tk 40000, Profession- Retired government service holder, Time required- 20 minutes, Consent- Not satisfied 5.

Name- Joynal Abedin, Age- 47, Nature- Non A/C holder, Amount transacted- Tk 30000, Profession- Businessman, Time required- 7 minutes, Consent- Satisfied 6. Name- Momota Chy, Age- 35, Nature- A/C holder (FDR, NMS), Amount transacted- Tk. 10000-Tk 100000, Profession- Services, Time required- 15-25 minutes, Consent- Satisfied with objection 7. Name- Saiful Islam, Age- 26, Nature- A/C holder (STD, FDR), Amount transacted- Tk 50000-Tk 400000, Profession- Businessman, Time required- 15-25 minutes, Consent- Satisfied with objection 8. Name- Haji Md Shamsul Islam, Age- 21, Nature- Non A/C holder, Amount transacted- Tk 50000, Profession- Student, Time required- 15 minutes, Consent- Satisfied 9.

Name- Basu Dev Hath, Age- 53, Nature- A/C holder (SB, STD, CC, CD), Amount transacted- Tk 100000-Tk500000, Profession- Engineer, Time required- 10 minutes, Consent- Highly satisfied 10. Name- Mijanul Haque, Age- 30, Nature- A/C holder (CD), Amount transacted- Tk 20000-Tk 100000, Profession- Businessman, Time required- 10 minutes, Consent- Highly satisfied 5. 4 Dimensions of Service Quality Customer perceives quality in a multi-dimensional way. SERVQUAL is an empirically derived method that may be used by a service organization to improve service quality. The method involves the development of an understanding of the perceived service needs of target customers.

These measured perception of service quality for the organization in question, are then compared against an organization that is ‘excellent’. The resulting gap analysis may then be used as a driver for service quality improvements. The methodology was originally based around 5 key dimensions: i) Reliability: Ability to perform service accurately and dependably. ii) Responsiveness: Willingness to help customers and provide prompt service. iii) Assurance: Knowledge and courtesy of employees and their ability to convey trust. iv) Empathy: Care and individualized attention given to customer. v) Tangible: Appearance of physical facilities, equipment, personnel and communication materials. 5. 5 Analysis of Basic Dimensions

Along with the questionnaire survey, some extra queries have also been made in terms of measuring satisfaction level of NBL, Muradpur Branch’s customers. The detailed findings and analysis done based on those along with the help of the dimensions are as follows. The analysis of NBL’s reliability Reliability means the ability to provide the promised service s dependably and accurately. It is one of the most important dimensions in almost every service providing organization. The survey results show that customers thought NBL, Muradpur Branch reliable but not satisfactory. So the reliability sector of NBL needs to be worked on more. To improve this dimension the main problem that was identified was that the clients were not usually informed.

The preferred suggestion would be to let customers know just how and when services are going to be performed and the relevant changes that have been made through phone, or via mail or email or even by sending newsletters. The analysis of NBL’s assurance This dimension is particularly important for services that the customers perceive when high risk is involved and when they suffer from uncertainty. Throughout the study it was able to infuse trust and confidence to the customers, which is the key success for any organization. The analysis on NBL’s empathy This dimension happens to be not as good as other dimensions, as it usually gets hampered by the banking hours, especially the peak hours.

As a result, most of the time it’s quite impossible for the bank officials to give its customers individual attention. The analysis on NBL’s tangibles Tangibles refer to physical facilities, equipments, personnel and communication materials that are visible in the eyes of the customers and on the basis of which the customers can evaluate quality. In this regard, NBL pays attention to the tangible dimensions, which enhances the bank image, service quality and instills confidence in customers. Chapter: 6 Findings, Recommendations and Conclusion 6. 1 Findings The findings of the survey based on questionnaires and interviews are as follows: 1. The Muradpur Branch has not yet attracted many potential customers probably because of the vicinity of the branch. 2.

No parking facility. 3. Most customers were influenced to banking with NBL because of their customer services. That is; NBL’s customer satisfaction level is high. 4. Bank is not efficient in controlling rush hours resulting in long waiting hours for the customers. 5. NBL does not communicate very well with their customers failing to inform them of important changes in rules of the Bank. 6. Absence of online banking. 7. Lack of sufficient manpower. 8. Power supplies always fail and suffer for generator system. 9. Officers lack manners. 10. Customers have to wait for foreign TT in case of slow services. 11. High interest rate in case of loan. 12.

Low interest rates in case of deposits. 13. The security guard lacks manners. 14. Clients feel insecure carrying money due to the bad locality of the bank’s location 15. The security inside the bank is not sufficient 16. CCTV is not available. So it is quite difficult to monitor cash development 17. Most of the time staffs behave like an officer. 18. Officers in some case are highly dependent on staffs. 19. Officers are specialized in specific areas and so are ignorant about other activities and tasks. 20. Executives and officers do not maintain professional mentality in their job. 21. Environment around the bank makes it uncomfortable for lady customers to visit the bank. 22.

Overall the banker-customer relationship is highly satisfactory. 6. 2 Recommendations Though National Bank Limited has established its image as one of the best service provider; they have yet to establish themselves as market leaders. The Bank has to overcome the shortcomings in the near future and offer new innovative products to retain its position as a leader amongst other banks year after year. As this research based study on “Measuring Performance of a Bank with Special Reference to Customer Satisfaction” lets me a provision to come to the closest contact of the original plot of this banking system. There are some recommendations to be improvised by the bank: NBL should think about relocating the Branch to a more friendly environment or find ways to improve the existing surrounding areas. • The Bank should be more efficient in handling rush hours so as to make more prompt services to customers. • The Branch should introduce foreign exchange to expand its services abroad. • The Bank can introduce surveillance camera in the cash department to follow the clients’ on-line system documents frequently. • They can launch on-line banking because it is gaining a lot of popularity in the modern world. • National Bank Limited can arrange monthly seminars or workshop for the branch’s officers. • The Bank should open more branches in the rural areas as they can be profitable. NBL should appoint sufficient and experienced manpower. • Employees of the Bank should discharge their duties and responsibilities more professionally and enthusiastically. • Strict supervision is required in the Bank to avoid loan defaulters. • NBL can charge lower rates. • They should take initiatives to increase the reputation of the Bank • They should not show partiality when relatives become their clients. • NBL should have more decentralization, so that branch managers can take decisions quickly. • They should create congenial working environment and friendly behavior among Executives, officers and staffs. • The Bank should take initiatives to introduce proper training programs. They should gradually complete full automation of the Branch. • NBL should introduce proper security system. 6. 3 Conclusion The overall study depicts that the customers of NBL are satisfied with the bank’s overall performance. As the deposits and the number of accounts increases, it can be said that the performance of NBL is good. NBL, Muradpur Branch, started its journey on 19th November 2006. Up to December 2009 the total deposit of Muradpur Branch was Tk26 crore (approx. ) and profit on 31st December 2009 was Tk32 lac (approx. ). Personal financial services are the traditional strength of NBL, which is one of the largest banking and financial service in the world.

NBL is determined to build long-term customer relationship with its corporate client. As a part of this, NBL is trying to expand their business with the market leaders of each sector of each business. In personal banking the bank has undertaken initiatives to provide some customer friendly products and services like alternative deposit scheme, consumer credit scheme etc. The maximum number of customers stayed with NBL since its commencement and is satisfied with the service provided. NBL’s bankers try to solve the problems of the clients and provide the best services. The clients generally need not wait for long time unless the problem is complex. One of the main problems of NBL is the lack of ATM facility and online banking.

They also do not provide utility payments service like payment of gas, electricity and WASA bills. Muradpur Branch of NBL earns reliability, responsiveness, and assurance of customers successfully. NBL is the first member of Western Union Money Transfer. For this reason the network and server of Western Union Money Transfer provide better services than other banks. It is capable of providing services to the customers within a few minutes. The branch also provides foreign remittance services to the members of Xpress Money, SAMBA and Al Fardan, Instant cash and Foreign TT. So, it can be said that for a newly established branch it performs well but has the scope of doing much better in future.

I wish that the said branch would continue its face of growth and retain its present leading position as well as image in the market. Appendix I, the student of Department of Business Administration, of the International Islamic University Chittagong have been assigned an internship program as part of my BBA program. My topic is “Measuring Performance of a Bank with Special Reference to Customer Satisfaction”. Here is the model of the questionnaire for the survey: Questions to the customers 1. How long have you been banking with National bank, Muradpur Branch? Please put your answer here———– 2. How frequently do you come to the bank? a. Once a week b. Twice a week c. Once a month d. Several times a month e.

Very less 3. What influenced you to start banking with National Bank Limited? a. Word of mouth b. Easy location c. Customer service d. Others 4. How efficient do you find the bank officials in terms of providing services? a. Very efficient b. Not up to the mark c. Moderate 5. Do you get your problems solved immediately? a. Always b. Sometimes c. Never 6. Do you usually have to wait for long time to get your work done? a. Always b. Sometimes c. Never 7. Did you ever have to make repeat visits for the same problem at the bank? a. Yes, very few times b. Yes, quite a few times c. Always d. Never 8. Does the bank change rules too often? a. Yes b. No 9.

Are you informed about the changes as soon as they are made? a. Always b. Sometimes c. Never 10. Do you think the bank should provide ATM facility? a. Yes b. No 11. Do you think the bank should provide online services? a. Yes b. No 12. How much time you require to open an account with National Bank Limited, Muradpur Branch? Please put your answer here———– 13. How much time you require to have a chequebook issued? Please put your answer here———– 14. How much time you need to get encashment of a cheque? Please put your answer here———– 15. How much time and cost you need to get a statement of account? Please put your answer here———– 16.

How do you feel about banker-customer relationship in National Bank Limited, Muradpur Branch? a. Very well b. Well c. Average d. Below average 17. How do you evaluate the overall performance of National Bank Limited, Muradpur Branch? a. Excellent b. Standard c. Good d. Average e. Not up to the mark Questions to the bankers 1. How much time is required to open an account? 2. How much time is required having a chequebook issued? 3. How much time is needed for the encashment of cheques? 4. How many days are required getting a loan proposal processed? 5. How do you feel about banker-customer relationship in National Bank Limited? References o Kotler Philip, Armstrong Gary, “Principles of Marketing (11th

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