Executive Summary:

This report aims toward providing an overview on the Prime Bank Ltd. and its customers satisfaction. The report is prepared within the broader framework of internship program of Human Resource Department, Dhaka University. While preparing this report it has been tried to reveal the insights of the customer service system of the bank. A few recommendations and suggestions were also prescribed based on the observation and findings. While discussing the different aspects and functions of the bank, priority has been given to depict the real situation as far as appraisal and management system in PBL are concerned by employing the experience gathered during the internship program. Analysis on the findings is basically done to sort out the major aspects of the customer satisfaction and to draw some significant inferences. At the time for easier understanding of the report, supporting topics and terms are explained in light of textbooks and regulatory guidelines. To examine the efficiency of the customer service system, data are collected through questionnaire has been taken as the prime factor. Simultaneously some analysis has been given to explain performance of the Prime Bank Ltd and tried to link up with customer satisfaction. Management views about the problems are also given.

1.1 Statement of the research problem:

In general sense we mean Bank as a financial institution that deals with money. There are different types of banks like Central bank, Commercial bank, Savings bank, Investment bank, Merchant bank, Co-operative bank etc. But when we use the term bank it generally means commercial bank that collects the deposit from surplus unit of the society and then lends the deposits to the deficit units. Now-a days banking sector is modernizing and expanding its hand in different financial events every day. At the same time the banking process is becoming faster, easier and is becoming wider. In order to survive in the competitive field of the banking sector all organizations are looking for better service opportunities to provide their fellow clients. So it has become essential for every person to have some idea on the bank and banking procedure. Internship program has been included to BBA curriculum for producing talent, up-to-date and smart, efficient executives. Internship means gaining supervised experience. Internship program offers an opportunity to know the environment of a particular organization. Theoretical knowledge does not make a person perfect. To implement the academic knowledge, practical knowledge related to it is important. A perfect coordination between theory and practice is important in the context of modern business world. In order to resolve the dichotomy between theory and practice, the different university arranged Internship Program as a partial completion of BBA program. This program is necessary for every student to complete his or her academic degree. Internship program brings student closer to the business

theory and practical and thereby help them to substantiate their knowledge so that they can prepare themselves to start a successful career. As a participant in this, I was place under First Security Isamic Bank, City University branch, Dhaka, which is well reputed for trade and commerce in Dhaka city. In preparing the report, I have incorporated the suggestion from correspondents to mention here. This report is mainly emphasis on product marketing in First Security Isamic Bank -comparative study with leading private Banks. Financial services are a difficult business, subject to many pressures. The regulatory environment, risk and capital management, reporting and compliance are all major issues demanding the attention of board and executive alike. On top of this there is still a business to run, with customers to be won or retained, costs to be managed and shareholder value to be created, all in an increasingly dynamic and international environment, where failure on any of these counts can swiftly lead to the attention of predators, both domestic and international. Important to the success of a financial service organization in this complex environment is the key relationship between the revenue generating client base and the cost of the infrastructure required to service, satisfy and delight them. The cost-income ratio remains one of the most closely watched and targeted numbers in any modern bank. On the revenue side growth in customer numbers, customer retention, share of wallet, and cross sale ratio are all key metrics. While on the cost side the variables are around staff numbers, branch numbers, the range and variety of channels to the customer and the location of transaction processing, as off shoring develops as a means to both manage cost and, in some cases, improve customer service.
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What then, are some of the most important elements of customer service in the current market and what has been going right and wrong for the banks? This report is an integral part of every student course curricula and the gaining of his practical training. It ensures the practical knowledge on a specific matter, which is assigned to the students by their respective teachers or otherwise known as supervisor. The Title of my report is Customer satisfaction in Prime Bank Limited This report is assigned by the HR department of Prime Bank Limited and approved by the Supervisor of Department of Management Studies, Faculty of Business Studies, University of Dhaka.

1.2 Objective of the study:

The ultimate objective of the study is to gain real life exposure in the banking sector get a clear idea about various customer services and customer satisfaction of Prime bank Limited. The objectives of the study are: Building habit of work and learning responsibility on the duration of internee. To present an overview of PBL. To appraise the task which are directly linked with customers? To identify problems of customer management department. Identify the solution of these problems. Matching himself with new people & environment.

1.3 Methodology of the Study:

The nature of this report is descriptive, so instead of doing any survey or using sampling method, observation method is used to complete this qualitative research. Most of the necessary information has been collected by face to face interview with the employees working in this department, personal investigation with bankers, circulars sent by Head Office and maintaining daily diary which contains all the activities that has been observed in the bank. Population: The study will be conducted on the customer Service Quality in Prime Bank Limited. Therefore, for the purpose of the study customer Service Quality in branches of Prime Bank Limited would be constraints of population of the study. Sampling Unit: Only one branch of Prime Bank Limited would be the sampling unit for the study, i.e., the Islamic Banking Branch, Mirpur, Dhaka. Sampling Technique: Random sampling used for the purpose of the study,

Sources of Data:
The report is based on both primary and secondary sources of information. Interviewing the managers and officers of the bank, talking to the customers has provided the primary sources of information. Furthermore, different publications of the bank, annual reports, and the bank website were the secondary sources of data.

Primary Sources: The primary data had been collected from various sources. The different sources were: Distribute questionnaire among selected customer to receive feedback. Face to face conversation with the employees. By personal interviewing and interacting customers at PBL. Observing various organizational procedures. Secondary Sources: From prior research report. From different books and periodicals related to the banking sector. From internet. Annual report of PRIME Bank Ltd. Published Booklet of PRIME Bank Ltd. Various published documents.

Data Collecting Technique:

Fort the purpose of the study two methods of techniques used: Observation Interview Observation: Observation method is often used to complete this qualitative research because it is very difficult to provide any specific example from any file about certain document, as the matter is very sensitive for the client as well as for the bank.
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Interview: Primarily reporter got some data from face-to-face interview of different employees of PBL at IBB, Mirpur Branch. By face to face conversation with the employees and by personal interviewing and interacting customers it is easy to collect the accurate information for the study. For the purpose of this interview, customers were asked to fill up a questionnaire. Based on their answer, it is easy to justify the customer service quality in IBB, Mirpur, Dhaka.

1.4 Scope of the Study:

The scope of this report is limited to the overall description of the company, its services and its position in the industry and its marketing strategies. The scope of the study is limited to organizational setup, functions and performances.

1.5 Limitation of the Study:

Reporter has faced a few limitations to prepare the report. These are: It is very difficult to provide any specific example from any file about certain document, as the matter is very sensitive for the client as well as for the bank. As a financial organization, a bank has some restriction to serve all the real data of the bank to the general people. Large-scale research was not possible due to time constraints.

 Relevant data and document collection were difficult due to the organization confidentiality. Non availability of data in a systematic way.

2.1 Profile of the Company:

In the backdrop of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs conceived an idea of floating a commercial bank with different outlook. For them, it was competence, excellence and consistent delivery of reliable service with superior value products. Accordingly, Prime Bank Ltd. was created and commencement of business started on 17th April 1995. The sponsors are reputed personalities in the field of trade and commerce and their stake ranges from shipping to textile and finance to energy etc. As a fully licensed commercial bank, a highly professional and dedicated team is managing Prime Bank Ltd. with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition. Prime Bank Ltd. has already made significant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMEL rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operation. Prime Bank Ltd. offers all kinds of Commercial Corporate and Personal Banking services covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank. Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software

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As a fully licensed commercial bank, a highly professional and dedicated team is managing prime bank ltd. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition. The company recruited bankers with a high degree of expertise and a proven track record. This it was enough to get the company going. And once the initial difficulty was averted, there was no turning back. The superior service made the bank a symbol of successful banking PBL is one of the first few Bangladeshi banks who have become member of SWIFT ( S ociety for W orldwide I nter-bank F inancial T elecommunication) in 1999. SWIFT is members owned co-operates, which provides a fast and accurate communication network for financial transactions such as letters of credit, fund transfer etc. By becoming a member of SWIFT, the bank has opened up possibilities for uninterrupted connectivity with over 5700 user institutions in 150 countries around the world. Prime Bank Ltd. begin a banking company has been registered under the Companies Act 1913 with its registered office at 5, Rajuk Avenue, Motijheel C/A, Dhaaka-1000. Later it shifted to Adamjee Court Annex building, 119-120, Motijheel C/A, Dhaka-1000. Prime Bank Ltd. was established on 17 th April 1995 with an authorized capital of Tk. 1000 million and paid up capital of Tk. 100 million (raised to Tk. 700 Million in 2003) by a group of highly successful entrepreneurs from various fields of economic activities such as shipping, oil, finance, garments, textiles and insurance etc. The bank operates as a schedule bank under banking license issued by Bangladesh Bank, the central bank of the country on April 17, 1995
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through opening of its Motijheel branch at Adamjee Court Annex Building, Motijheel C/A, Dhaka-1000. The bank made satisfactory progress over the years after its starting. Despite difficult circumstances it became able to sustain with some achievements. The bank further expected and consolidated its customer base in both of its core business and retail banking. The bank retained its lead position with the capital adequacy ratio of 11.92% as on December end 2003, which id well above the stipulated requirement of 8%. The return on asset (ROA) was 4.13% well above the industry average.

2.2 Objectives of Prime bank limited:

The main objective of Prime Bank Ltd. Is to maximize the profit through customer satisfaction which very much reflects the idea of fundamental marketing concept. It has been pursuing to earn maximize profit by providing best and improved customer service. To ensure high return on investment and with different products and services. To remain as the market leader, diversification of business and the automaton of banking operation. To play a significant role in the economic growth of this country. To strive for profit and sound growth.

2.3 Vision, Mission and Strategic Priorities of PBL:

Vision of the bank:
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To be the best private commercial bank in \Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity. Mission of the bank: To build PBL in to an efficient, market driven, customer focused institution with good corporate governance structure. Continuous improvement in our business policies, procedure and efficiency through integration of technology at all levels. Strategic priorities of the bank: To have sustained growth, broaden and improve range of products and services.

2.4 Organizational Structure:

Organizational Structure Chairman Executive Committee Board of Directors Managing Directors Additional Managing Director Deputy Managing Director Senior Executive Vice President Executive Vice President Senior Vice President Vice President

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Senior Asst. Vice President Asst. Vice President First Asst. Vice President Senior Executive Officers Executive Officers Principal Officers Senior Officers Management Trainee Officers Junior Officers Trainee Assistant Other Employees

2.5 Branches of PBL:

As a fast growing commercial bank PBL is committed to extend its services all over the country. During 2005, the bank opened 5 branches at important financial hubs of the country with which total number of branches stood at 43. Out of the five branches opened during the year 2005, four branches are located at places for facilitating inward remittances of the wage earners. The openings of branches have strengthened the network and opened opportunity for growth. PBL always try to reach the doorstep of the customers.

Rajshahi Division Rajshahi Bogra

Khulna Division Khulna Jessore

Barisal Division Barisal

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Dhaka Division Motijheel Foreign Exchange IBB, Dilkusha Mohakhali Kawran Bazar Mouchak Elephant Road Gulshan Bangshal Narayangonj Ganakbari Moulovi Bazar Uttara Dhanmondi New Eskaton Madhobdi Banani IBB, Mirpur Pragati Sarani Shimrail Asad Gate Tongi Panthapath Mirpur Road Mirpur-1

Prime Bank Limited Head Office Motijheel C/A.

Chittagong Division Jubilee Road IBB, BS Plaza Agrabad Khatungonj IBB, Nizam Road Pahartoli Fatikchari

Sylhet Division Sylhet IBB, Amberkhana Court Road

Laldighirpar

Beanibazar Subhanigat

Note: IBB stands for Islamic Banking Branch. Out of 43 branches no. of IBB is 5

Exchange company at Singapore:

In order to encourage wage earners remittances through banking channel, the bank has taken steps to open exchanges houses at

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different locations of the world where the Bangladeshi wage earners are located. Accordingly, step has been taken to open a wholly owned exchange company of PBL at Singapore. The Exchange Company has started its operation in the 1 st quarter of 2006.

2.6 Departments of PBL:

Total division and departments of prime bank ltd. can be classified under three main aspect of banking. 1. Administrative department 2. Operational department 3. Other department 1. Administrative Department Under the administrative department the following divisions of PBL usually operate. Human resource division Human resource division of PBL is one of the most important divisions. This division is assigned to the responsibility of recruiting, posting, transfer, promotion and development of human resources of the bank. Branch control and expansion division The duties of this division are to preparing test key arrangement among the branches to maintain inter branch accounts and overall control of the branches. Public relation division Another important division under administrative department is public relation division. The main activity of this division is to maintain

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public relation in terms of customer relation through its operating all over the country. 2. Operational Department Under the operational department the following divisions of PBL conduct their respective works. Credit division All activities related the loans and advances of the bank are directed and controlled by the credit division. This division deals with different kinds of credit products of the bank. These are Commercial Credit Industrial Credit Lease Finance Hire Purchase Real State Credit etc. Investment Division PBL has started its operation with an objective exceptional to other commercial banks, to take part in the Capital Market and Money Market in the country. To achieve this objective bank has established a separate division named INVESTMENT DIVISION. The main activity of this division is to maintain proper investment and monitoring of those investments. 3. Other departments There are some other important divisions performing their respective works for the success of PBL which are as follows: Research and development Marketing
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 Training

2.7 Prime Bank Training Institutions:

Prime Bank Training Institute was set up in July, 1998 with an aim to create a strong & skilled workforce. During the year 2000, it gave training to as many as 700 participants through 19 short & long term courses. There were three foundation training courses for the newly and existing recruited management trainee officers covering General Banking, Credit & International Trade. Senior Executives, Eminent educationists, & various professionals of different institutes are invited in the training program as guest speakers. The bank management emphasized on computer literacy & it knowledge for their employees & conducts various courses/ workshops/ seminars every year for their officers.

2.8 Prime Banks Business Portfolio:

The aim of the Bank is to participate actively in the socioeconomic development of the nation by operating a commercially sound Banking system. It provides credit to deserving borrowers and at the same time protects depositors interest and thereby earning more and more profit for the shareholders. In simple, to secure deposit from the customer and to lend the deposit again to customer is the prime business of Prime Bank. Apart from traditional Banking activities, Prime Bank facilitates its clients with extending credit to traders to boost up their business, to finance export import trade, to finance industrial sector and to support financially to different priority sectors. Financing small and medium enterprise with

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particular attention to export business and agro based industry has been focused. Small loan scheme for small entrepreneur is an innovation in the credit scenario of Prime Bank. Here are the main activities of Prime Bank described briefly. Commercial Banking: Prime Bank is largely involves in commercial Banking operation. Besides providing quality services to customer, priority has been given to expand free-generating business and low-risk products. Corporate Banking: The Banks corporate division department has successful in developing project finance business, and the Bank has been involved in many key project finance operated in Bangladesh. The initiatives include an independent review of all credit proposals by Risk Management Department and use of risk rating system to improve objectivity in the evaluation of credit proposal. Retail Banking: The Banks retail banking business continues to be very active. The Bank has a network of Forty-One (41) branches in the country. The Bank has sharply focused on key customer segments to profitable deliver a well tailored set of products and services through expanded distribution channel with high levels of efficiency and productivity.. Prime Bank has well distributed network of ATM and POS (Point of Sale) terminal giving customer unmatched convenience. Payment of utility bill, credit card, personal loan and any purpose loan etc has contributed largely to expand retail Banking. Islamic Banking:

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Prime Bank has started its Islamic Banking operation through its first Branch being inaugurated at 19, Dilkusha C/A, Dhaka on 18 December 1995. Since then it has so far has established four more branches at different locations in the Country. Because of its popularity and managements commitment toward social well being, gradual expansion of Prime Banks Islamic Banking operations is assured. Objectives of launching Islamic Banking operation in Prime Bank Limited are: To cater to the needs of customers who want to have services in Islamic Modes; To introduce the partnership concept of business operations; To arrange for ensuring justice in distribution system- use of funds To introduce wealth maximization concept through profit /loss sharing system in business and investment; To provide products and services free from interest suited to the needs of customers and establish justice in the society; To do other acts ancillary to the establishment of exploitation free society. Service Portfolio: Prime Bank provides the following services under Islamic Banking: Deposit Investment Foreign Trade Remittance and Fund Transfer

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3.1 Profile of Islamic Banking Branch, Mirpur, Dhaka:

Name of the Branch : Date of Establishment : Address : Phone no Fax Web-Site : : : Islamic Banking Branch 13th November, 2003 Mamoni Tower, 1244 East Monipur, Begum Rokeya Sarani, Dhaka-1216 8057682, 8058371 880-2-8057681 www.prime-bank.com

Bangladesh is one of the largest Muslim countries in the world. The people of this country are deeply committed to Islamic way of life as enshrined in the Holy Qur'an and the Sunnah. Naturally, it remains a deep cry in their hearts to fashion and design their economic lives in accordance with the precepts of Islam. Prime Bank Limited started its operation in the year 1995 as A bank with a difference, blending its conventional banking system with that of Islamic Banking operation based on Shariah Principals. Out of 37 branches of the Bank, 5 branches provide Islamic banking operation to serve the increasing demand of customers for Islamic banking products & services. Such a blending of conventional and Islamic banking was the first ever in the country followed by other banks. The Challenge is not so much as in operating Islamic Banking but in maintaining both the forms in Parallel. Prime Bank has started its Islamic Banking operation through its first Branch being inaugurated at 19, Dilkusha C/A, Dhaka on 18 December 1995. Since then it has so far has established four more branches at different locations in the Country. Because of its popularity and managements commitment toward social well being gradual expansion of Prime Banks
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Islamic Banking operations is assured. Following are the salient features of Islamic Banking, as is practiced in Prime Bank Limited.

3.2 Unique features of Islamic banking branch:

There are some features that are unique from all other branches of Prime bank limited. These are point out below: All activities are conducted according to Islamic Shariah. Interest free monetary operations. To accept deposits on Mudaraba & Al-Wadeah basis. To contribute in achieving the ultimate goal of Islamic economic system. To establish a welfare-oriented banking system. To play a vital role in human development and employment generation. To contribute towards balanced growth and development of the country through investment operations particularly in the less developed areas.. Building partnership relation between the Bank and its customers. To establish participatory banking instead of banking on debtorcreditor relationship. Following Islamic principles in its investment portfolio. While investing special consideration to social needs is given. Through small and long term deposit schemes providing hope to the poor income group of the society. Client service centric banking, through which making the clients feel special.
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 Conduct welfare activates etc. To extend co-operation to the poor, the helpless and the low-income group for their economic enlistment

3.3 Objectives of Launching Islamic Banking operation in Prime Bank Ltd.

To cater to the needs of customers who want to have services in Islamic Modes; To give importance to the sentiment of the people, majority of whom are Muslims and are akin to the Islamic financial system; To introduce the partnership concept of business operation; To arrange for ensuring justice in distribution system-use of funds; To introduce wealth maximization concept trough profit/loss sharing system in business and investment; To help distressed people develop their financial standing through Islamic Banking operation mechanism; To provide products and services free from interest suited to the needs of customers and establish justice in the society; To do other acts ancillary to the establishment of exploitation free society. Prime Bank provides following services under Islamic Banking: Deposit Investment Foreign Trade Remittance and Fund Transfer

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Introduction: A bank is a financial institution which takes deposits money from surplus economic unit & provides lending to the deficit economic unit. It plays an important role for developing economic growth in a country & it is a largest mobilizes of surplus domestic savings. The operational procedure of Islamic banking branch is mainly serve three major activities for their customer effectively and efficiently. These are: General banking Loans and advances Foreign exchange These are discussing below:

4.1 General Banking:

A bank is a financial institution which takes deposits money from surplus economic unit & provides lending to the deficit economic unit. General banking is the main part of every commercial bank. General banking department offer many products for their customers. These are: Current Deposit Account Saving Deposit Account Short Term Deposit Account Fixed Deposit Account

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 Contributory Saving Scheme Monthly Benefit Deposit Scheme Special Deposit Scheme Educational Deposit Scheme Foreign Currency Deposit Account Non-resident Taka Account Non-resident Foreign Currency Deposit Account (NFCD) Non-resident Investors Taka Account (NITA) Prime Bank Insured Fixed Deposit Scheme Prime Bank Money Scheme Multi Currency Account Credit Card ( Master card & VISA)

Opening an account:
Bankers and customer relationship established through opening an account. It binds the customer & banker into a contractual relationship. There are two types of account. Deposit account Loan account Generally account opening means to open a deposit account. When a customer want to open a bank account the bankers has to maintain some common principles & procedure from & he/she have to field those prescribed form & have to attach their organizations documents.

Different types of account:

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The total deposits held by the banker are broadly divided into demand deposits & time deposits. PBL is maintaining the major accounts for deposit mobilization.

The different types of accounts are as followed: Demand deposit: Under demand deposit clients can withdraw his or her money any time without any prior notice. At present Prime bank Ltd offers three types demand deposit such as: Current account Savings accounts Short term deposit account Current account: This scheme is of the nature of demand deposit. No interest is allowed on this deposit. This account has cheque facilities & balances are transferable. Savings account: Deposit on this account is self-explanatory & generally emanates from the individuals. A portion varying from time to time has saving deposits constituted demand deposit. Under this scheme bank pays 5% to 8.55% interest rate to the clients. Short term deposit account: The characteristics of short term deposit and current deposit are same. Here clients have to hold money for some period of time & the volume of the

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deposit will be large than current account. Under this scheme interest rate is 5.5%. Term deposit: In case of term deposit client can withdraw his/her money offer specific period of time. Prime bank Ltd. offers following kinds of term deposit: Fixed deposit receipt (FDR): This is classified by period of maturity & is exclusively time deposit. Under this scheme there are some terms & conditions as follows: Minimum deposit of this scheme will be 25,000. Age limit for the deposit should be 18 to 25. Insurance coverage is provided up to Tk. 20 lac. The range of interest of this scheme is 12.00% currently. The minimum time for this scheme is 1 year. In case of FDR scheme PBL deals with following terms deposit: Term Interest rate 3 months 11.50% 6 months 11.75% 1 year 12.00% If the customer can not withdraw his money after the maturity period then it will be auto renew for next period. Special Deposit Scheme: This is deposit scheme where an instrument is issued for the full certain amount. The scheme is specially designed to provide for children education, marriage and old age security. It will create good opportunities for attractive investment of provident fund, trust fund, reserve fund/security fund of institution and organizations. It will also provide for the wage earners towards investment of their fund.

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Consistent with the modern edge and competing in a perfectly competitive market, PBL has introduced some innovative banking services that are remarkable in a country like Bangladesh. The services offered by the bank under the general banking are as follows: Online banking The bank has set up Wide Area Network (WAN) across the country within its all branches to provide online branch banking facility to its valued customers. The service named PRIMELINE has opened up several possibilities of improved customer services. Under this facility client of one branch are able to do banking transaction at any other branch of the bank. The bank hosted its web site to facilitate dissemination of information about the banking services and facilities of PBL all over the world. Information technology in banking operation PBL has adopted automation in banking operation from the first day of its business. The main objective of this automation is to provide efficient and prompt services to its valued clients. SWIFT services PBL is one of the first few Bangladeshi banks to obtain membership of SWIFT. SWIFT is members owned co-operates, which provides a fast and accurate communication network for financial transactions such as letters of credit, fund transfer etc. By becoming a member of SWIFT, the bank has opened up possibilities for uninterrupted

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connectivity with over 5700 user institutions in 150 countries around the world.

Deposit Mix:
At the end of 2005, total deposit stood at Tk. 36022.46 million which was Tk 28069.24 at the end of 2004. The bank collected those deposits through different deposit schemes. Deposit mix as on December 31, 2005 was as follows: Seria l 1. 2. 3. 4. 5. 6. 7. Total Items Taka (in % of total million) Current and other deposits 6873.09 Savings Bank deposit 4492.00 Bearer Certificate of deposits 7.20 Fixed deposits 13746.17 Short term deposits 3169.98 Deposit schemes 7027.98 Bills payable 706.04 36022.46 deposit 19.08% 12.47% .02% 38.16% 8.80% 19.51% 1.96% 100%

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Current & other deposit Savings bank deposit 0.4 0.3 0.2 0.1 0 Bearer certificate of deposit Fixed deposits Short term deposits Deposit schemes Bills payable 1 2 3

Deposit Mix as a % of total Deposit From the above table and graph, we can say that the major portion of the Prime banks deposits collected from Fixed Deposit (38.16%), which is high Cost deposit. A favorable proportion (8.80%) was also collected from the low-cost deposit accounts.

Types of DPS:
Prime bank limited offers various deposit schemes for the customer that are vary much popular. This deposit schemes make Prime bank limited attractive for their customer. These are as follows: Lakhopoti Deposit scheme Mudarabah Contribution saving scheme Double benefit deposit scheme Prime Mudarabah Millionaire Deposit scheme Mudarabah Haji Savings scheme

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 Mudarabah Education savings scheme Lakhopoti Deposit scheme: This is the most popular deposit scheme of Prime bank limited. On the basis of monthly installments and maturity period the total money received by the depositor are following: Monthly installment (Taka) 250 15 years 500 10 years 1285 5 years 2400 3 years Mudarabah Contributory savings scheme: Maturity period Total money after maturity 100000/100000/100000/100000/-

The terms and conditions of this scheme are following: Minimum size of the monthly installment shall be Tk. 500/- and multiples of Tk. 1000/-. Maximum installment size shall be Tk. 25000/-. The deposit shall be a period of 5 years. Lump sum amount shall be paid after maturity or monthly pension shall be paid for the next 5 years according to the size of deposit. Double benefit scheme: The terms and conditions of this scheme are following: The scheme shall be implemented through all of our Conventional Banking Branches. Deposit of TK 25000/- (Taka Twenty five Thousand) and multiples thereof but maximum limit of Tk. 25, 0000/- (Taka Twenty five lac) at a time will be acceptable under the scheme.

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 The instrument shall be issued for 06 (Six) years term. At maturity after 06 (Six) years double the amount of deposit will be paid to the depositor. Prime Mudarabah Millionaire Deposit Scheme (PMDS): The terms and conditions of this scheme are following: Monthly installment will be Tk . For the period of 5/7/10 years respectively. According to the installment size and duration of the deposit, the terminal value will be Tk.10.00 lac. A chart in this regard along with monthly return is furnished below: Size of monthly deposit (in Taka) Investment period(Approximat e in year) After the investme-nt Period the termi-nal value of the Scheme ( in 12,465.00 7890.00 4570.00 5 7 10 Taka) 1000000.00 1000000.00 1000000.00 @21,748/month(5years) @17,137/month(7years) @13,786/month(10years) Monthly Return / Pension Amount ( in Taka)

Mudarabah Hajj Savings Scheme: The terms and conditions of this scheme are following: Hajj Savings Account can be opened in the name of the individual only. Deposits in this account are received on the basis of Mudaraba principle of Islamic Shariah.
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 Persons eager to perform Hajj within the period of 1 to 5 years may build-up savings by monthly installment to the amount of Hajj expenses for a particular year. Mudarabah Education Savings Scheme (MESS): The terms and conditions of this scheme are following: The Scheme shall be implemented through all of our branches. Deposit of TK. 50,000.00/- and multiples thereof but maximum limit of TK. 5, 00,000.00/- (Taka five lac) at a time will be acceptable under the scheme. A specially designed Receipt shall be issued for the deposit under the Scheme in the same manner as issued in case of MTDR. The instrument shall be issued for 5 years term.

Despatch by the branches:

Despatch by the branches is two categories. These are: Inward mail Outward despatch Inward mail: Inward mail is two types such as: Inward mail Inward telegram Outward despatch: Outward despatch includes the following items: Outward mail Hand delivery

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 Ordinary mail Registered post &Postage stamp

4.2 Loan and Advances:

Loan and advance is an important part of a bank. Deposit extraction and credit extension is the basic function of a bank. Proper credit management is the crying need for a bank. So every bank follows some policy of direction, monitor, smooth approval and review of lending operation for the proper credit management. IBB, Mirpur continued to extend its credit facilities to industries, trade and commerce, productive and priority sectors and to small and medium enterprise, within the policy guidelines of the bank and Bangladesh Bank. Prime bank offers various loan products for their customer. These are as follows: SME credit scheme House building financing scheme Hire purchase Secured Overdraft Lease financing
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 Consumers credit scheme Loan against shares and securities Prime bank master card credit card Prime bank visa card credit cards Import financing Export financing Industrial and project financing Financing scheme for Contractors Computer software financing scheme Working capital financing

Securities:
Securities are vary essential for implicit in the credit decision. The bank for creation of Loan requires following securities: Loan. Machinerys. Security Papers. Band Sanchaypatra. Personal Guarantee. Ownership for vehicles. Bank guarantee etc.

Different form of advances:

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Depending on the various nature of financing, all the lending activities have been brought under the following major heads: Loan (General): Short term (for 1 year), Medium term (for 1 to 3 years), Long term loans (for 3 years and above) allowed to individual/ firm/ industries for a specific purpose but define period & generally repayable by installments. Housing building loan (General): Under these types the amount is repayable by monthly installment within a specific period. The advances are known as HBL loan. House building loan (Staff loan): Loan allowed to bank employees for purchase/ construction of house is known as staff loan.

Cash Credit: Cash credit is a continuous form of debit and credit up to a limit with an expiration date. Here interest charge is normally made as a percentage of the value of purchases, depending on the nature of this term cash credit is divided in to 11 pledge and hypothecation. Secured Overdraft: Advance allowed to a customers current account at the bank permitting him/her to overdraw up to a certain agreed period to a certain limit. Payment against document: It is an interim advance with import and is generally liquidated shortly against payment usually made by the party for retirement of the documents for release of imported goods from the customer authority.

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 Export credit: These types of facilities are provided to facilities export of all items against confirmed export order and also accommodate under the head Export credit, Packing credit and foreign documentary bills purchase. Demand loan: The demand is such types of loan the repayment of which is required to be making after a format notice, is given to the borrower by the bank. Consumer credit scheme: At present consumer credit scheme is the most popular service oriented customer based credit scheme, which IBB has been providing to its respected clients. Under this program IBB offers loan to its clients for buying essential commodities for consumption purpose that are given below: Car, Motor cycle, Bicycle

Television, VCP, VCR, Radio, Two-in-one camera Air condition, Air-cooler, Washing Machine Refrigerator (all types) Computer, Telephone, Typewriter, Mobile phone, E-mail, Fax Generator, UPS, IPS, photocopies machine Furniture

Portfolio of Loans and Advances:

At the end of 2005, total loans advances amounted to TK. 31916.11an which is greater than TK. 23219.67, million in 2004. The bank extended its credit

39

facilities to Trade Finance, Project Loans, Working Capital and Consumer Credit etc. The Prime bank Ltd. Also encourages small business groups and offers credit facilities to them. Agriculture and IT sector both got priority from the bank in line with national interest. Prime Bank Ltd. had also extended long-term loans to a number of projects under syndicated financing arrangement with other banks and financial institutions. Portfolio of Loans and Advances ad on December 2005 is given below: Serial 1. 2. 3. 4. 5. 6. 7. 8. 9. Sector Taka (in % of total Loans 2.85% 21.29% 15.33% 14.69% 30.46% 3.32% .87% 2.82% 8.37% 100%

million) Agriculture 909.61 Large and Medium scale industry 6795.00 ( Term loan) Working capital Export finance Commercial lending House building loan Small and medium enterprise Consumer credit scheme Others Total 4892.74 4688.47 9721.65 1059.61 277.66 900.03 2671.37 31916.11

Loans & advances portfolio

2.82% 0.87% 3.32% 8.37% 2.85% 21.29%

30.46% 14.69%

15.33%

40

From the previous table and graph, we can say that Prime bank limited emphasizes more on commercial sectors. They provide more than 55% of their loans to commercial sectors and large and medium scale industry. Their contribution is very limited in Agriculture sector.

4.3 Foreign Exchange:

Foreign trade operation played a pivotal rate in the overall business development of the bank. This involves handling of import and export business through opening letter of credit, inshore L/C. The bank established relationship with 30 new correspondents abroad thereby raising the total number of correspondents to 396. The import items handled by the bank included electronic equipment, sports goods, chemicals, garments, machinerys fabric accessories etc.

L/C (Letter of credit):

Letter of credit means a credit guarantee from a bank that a sellers credit to a buyer will be honored provided the seller his part of a specified agreement. Type of L/C according to its characterize and nature: L/C Aid Loan/ Banter

41

 L/C Cash Back to Back L/C

Parties of an L/C:
Importer/Buyer Exporter/Supplier/Seller Confirming Bank Advising Bank/ Notifying bank Negotiating bank Paying bank / Reimbursing bank Issuing bank Operating bank

42

Branches are operating as a business and organizational unit and profit center. The success of the unit depends upon the effectively and relationship of employees with the customer. To ensure effective internal customer
43

service and responsible for overall internal administration, control and supervision of the branch. PBL deposit is increasing with progress of time; this indicates public confidence on PBL. With progress of deposit loan is also growing it means PBL is investing the money, which they are receiving as deposit. It ensures the customer about their return. Return on assets (ROA) is not steady which is a bad sign because bank has very limited fixed assets own by them, so they should have higher steady return on assets. EPS has shown the same feature of ROA. This is alarming for the investors as well as for customers. PBL must do something to improve their ROA and EPS to keep customers confidence. Performance of Prime Bank Limited can be seen under the following heads. These are: Capital funds Import and Export business Deposit performance Loan and Advance performance Customer Satisfaction

5.1 Capital Funds:

The authorized capital of PBL is Tk. 4000 million and the paid-up capital stood at Tk. 1400 million as on December 31, 2005. Reserve fund of the bank stood at Tk. 1055.98 million in 2005. Authorized capital and paid up capital of PBL of previous five years are given below:

Authorized capital and paid up capital

44

Particulars Authorized capital Paid up capital Taka in million

2001 1000 500

2002 1000 600

2003 1000 700

2004 1000 1000

2005 4000 1400

SOURCES: PRIME BANK LTD ANNUAL REPORT.

5.2 Import and Export business:

The banks performance in the area was satisfactory. Total import and export business transected were Tk. 40303 million and 28882 million respectively during 2005. The growth rate of the import business was 10% and the main items of imports were industrial machineries, raw materials, commodities and other consumer products. The growth rate of export business was 48% and the items of export were RMG, shrimp, jute & jute goods, leather, tobacco, ceramic tiles, fresh vegetables, tempered quoted glass, bone crust, betel-nut etc. the import and export businesses were contributed by our corporate clients in export sector there was expansion in non-traditional items also.

Foreign exchange business

Import Year 2001 Amount 13427.60
45

2002 2003 2004 2005

19564.00 25440.70 36747.00 40303.00

Taka in million SOURCES: PRIME BANK LTD ANNUAL REPORT

Foreign exchange business

Export Year 2001 2002 2003 2004 2005 Amount 14186.60 12189.70 16490.10 19501.80 28882.00

Taka in million SOURCE: PRIME BANK LTD ANNUAL REPORT.

5.3 Deposit performance:

Deposit of their low offering, PBL was able to mobilize substantial deposits through various deposit schemes. Deposit mix of PBL contains mainly the following categories: Current and other deposit Saving bank deposit Bearer certificate of deposit Fixed deposit Short term deposit Deposit scheme
46

 Bills payable Deposits of PBL of previous 5 years are given in the following table. Year 2001 2002 2003 2004 2005 Deposit 13259.87 16481.23 20483.23 28069.24 36022.61

Taka in million SOURCES: PRIME BANK LTD ANNUAL REPORT. As the above table indicates deposit of the PBL is increasing, it indicates customer has confidence on the bank.

5.4 Loans and Advances performance:

With the view to improving the quality and soundness of loan portfolio, credit risk management methods were update in 2003. The bank is now applying a new system of credit risk assessment and lending procedures by sticker separation of responsibilities between risk assessments and lending decisions and monitors its exposure to particular sectors of economy on an ongoing basis. As before the bank continued extending credit facilities to trade finance, project loans, working capital and consumer credit etc. the bank has all along encouraged small business group and supported small and medium enterprise (SME). Agriculture and IT sectors both got priority from the bank in line with the national interest. The bank has also extended long-term loan to a number of projects under structured financing scheme with banks and financial institutions.

47

Loans and Advances of Prime Bank Ltd of previous five years is given to the following Table: Loans & Advances (Taka in Million) Year 2001 2002 2003 2004 2005 Amount 9074.94 12686.85 16492.22 23219.67 31916.11

SOURCE: PRIME BANK LTD ANNUAL REPORT.

Earning per share:

Earning per Share (EPS) of Prime Bank Ltd of previous five years is given to the Table in the next page:

EARNING PER SHARE (EPS) OF PBL (Taka in million) Year 2001 2002 2003 2004 2005 Amount 96.60 59.73 37.55 61.19 40.59

SOURCE: PRIME BANK LTD ANNUAL REPORT.

48

The higher EPS in year 2001 indicates exceptionally high rate it means very good position of the bank. After that in year 2002 the EPS decreased and it continued to year 2003. In year 2003 the EPS was exceptionally low that indicates the position of the bank was not good. Then from 2004 the growth goes upward and again goes down. So, from the table we can have a view that the EPS during 2001 to 2005 is not stable. Sometimes the EPS showing a very better position of the bank but sometimes its not.

Return on Asset:
Return on Asset (ROA) of Prime Bank Ltd of previous five years is given to the following Table. RETURN ON ASSET (ROA) OF PBL (On percentage) Year 2001 2002 2003 2004 2005 Amount 3.38% 2.38% 1.72% 2.16% 1.54%

SOURCE: PRIME BANK LTD ANNUAL REPORT. The higher ratio of ROA indicates the better position of the bank. In the year 2001 the ROA ratio was 3.38% which indicates, the banks performance was quit good comparatively in year 2002 to 2005.

Investment of PBL:
Investments of Prime Bank Ltd. of previous five years are given to the following Table.

49

INVESTMENTS OF PBL (Taka on million) Year 2001 2002 2003 2004 Amount 1730.74 1996.23 2749.71 3083.81

SOURCE: PRIME BANK LTD ANNUAL REPORT. From the above table it can be known easily the investments of last five years. From the year 2001 to 2005 it shows every year they have increased their investments. It means the earnings of the bank will increase in future as their investment is growing up.

5.5 PERFORMANCE AT A GLANCE:

Table:1 (Taka in Million)

50

Particulars Authorised Capital Paid-up Capital Reserve Fund Equity Fund Deposits Loans & Advances Investments Foreign Exchange Business Import Export Guarantee Business Operating Income Operating Expenditure Operating Profit Net Profit before tax after provision Fixed Assets Total Assets Dividend:

2001 1000.00 500.00 362.92 1258.26 13259.87 9074.94 1730.74

2002 1000.00 600.00 448.93 1526.41 16481.60 12686.85 1996.23

2003 1000.00 700.00 602.89 1781.86 20483.23 16492.22 2749.71

2004

2005

1000.00 4000.00 1000.00 1400.00 815.89 1055.98 2239.80 2808.00 28069.24 36022.46 23219.67 31916.11 3083.81 3939.50

27614.20 31753.70 13427.60 19564.00 14186.60 12189.70 2175.00 3659.30 1100.14 1196.20 344.05 756.09 705.09 448.36 747.84 696.84

41930.80 56248.80 69185.00 25440.70 36747.00 40303.00 16490.10 19501.80 28882.00 4247.73 4085.15 1593.69 1970.37 592.28 824.23 5302.80 2406.43 886.09 1520.34 1200.83

1001.41 1146.14 769.91 1064.24

174.27 218.50 15736.94 19358.93 30% 1:5 221.65 96.60 409.50 613 20% 1:6 234.81 59.73 307.51 730

265.17 321.68 372.12 24249.13 32361.62 41506.29 20% 3:7 233.12 37.55 374.25 777 2.5 223.98 43.71 879.50 894 1.4 (Proposed) 200.57 40.59 681.50 1024

Cash

Bonus Book value per share Earnings per Share Market value per Share Number of Employees

51

Number of Branches Number of Shareholders Number of Foreign Correspondents Capital Adequacy Ratio a) Tier -I b) Tier - II Return on Assets Loan as a % of total Deposits Ratio of Classified Loans to Total Loans

26 1081 398

27 1727 422

30 1993 441

36 2620 501

41 4467 517

17.50% 16.21% 1.29% 3.38% 68% 1.13%

12.43% 11.42% 1.01% 2.38% 77% 1.48%

11.90% 10.85% 1.07% 1.72% 78% 1.98%

10.74% 9.72% 1.02% 2.16% 81% 1.52%

9.96% 8.80% 1.16% 1.54% 89% 0.96%

52

53

Introduction:
Customer satisfaction is important in banking and represents a key driver of success and value creation. While banks are increasingly international in their outlook (and some have taken important steps to move into developing markets), for many, their core retail markets are mature and well banked with stable and aging populations. Banks are restricted to the natural turnover of their client base (capturing new clients as they mature into the financial services market) or capturing other banks existing clients with a better product, channel or service. Holding on to them once you have them is even more important. What then, are some of the most important elements of customer service in the current market and what has been going right and wrong for the banks? Marketing professionals believe that the most important factors for meeting the expectations of their customers are: The provision of a good range of quality products appropriate to the customers needs Speed and efficiency in dealing with customer requests and complaints A good quality branch experience. This can be explained under the headings of: Channel Product Personal service

54

6.1 Channel:
A major dimension of customer service that considered was the range and diversity of the channels available to banks clients to purchase and service their products. This is, of course, not what it used to be what is a pleasing array of choice for the clients can be a demanding operational problem for the banks as telephone banking (in a variety of flavors), Internet banking, branches and ATM networks, all need to be coordinated and managed. Branch networks In the midst of the technology boom the branch network retains a very strong position as the second most important channel to market. Indeed, after a long period when bank branches have been the poor cousins to the more glamorous technical channels, they are enjoying something of a renaissance. Internet banking Internet banking is the most important channel of clients, the results of the KPMG International 2004 consumer survey (Banking beyond borders), which found that, apart from price, good Internet banking was the most important feature of European consumers banking relationship. While the banks overall performance in this area is seen as strong, opinions were heavily divided. Telephone banking KPMG Research shows banks believe their clients place a higher value on their personalized telephone banking services than on their automated
55

systems. Personalized telephone banking support was seen to be as important as the branch and ATM networks in the delivery of good customer service.

6.2 Product:
Product is one of the most important drivers of bank strategy. Banks anxious to gain access to new product areas have spent billions. Strategic alliances have come and gone and the bank assurance model has been in and out of fashion on more than one occasion. All this strategic angst is apparently for good reason, as the provision of a good range of products was confirmed in the survey and commentary as one of the most important determinants of customer satisfaction. Innovative and increasingly tailored products are seen as key differentiators in banking industry.

6.3 Personal service:

Respondents were asked to rank and comment on a number of the people issues in the delivery of good quality customer service, such as the importance of friendly and courteous bank staff, speed and efficiency in handling complaints and efficiency in dealing with customers requests. These softer factors were seen as the most important elements of good customer service but are also some of the areas where banks, by their own assessment, are under-delivering. Respondents appear genuine in their desire to build a closer, trusting relationship with their clients. While a strong brand and reputation for financial solidity and stability can help with the trust issue, there seems to be a new willingness to rely on front line staff to build the banks relationship with their clients. Training, in both technical issues

56

and relationship skills, is very important. Getting the basics right is viewed as the most important element of customer service. Satisfaction is a term, which differs from person to person. Expectation of customers increases as time passes. Evaluating whether customers are satisfied is very difficult. Every person has different perception about the same job. An example from my real experience I used to receive cheque from the customers some of the customers were satisfied even if I take 5 minutes some were not satisfied even if I take 1 minute. This example explains that satisfying customer is a difficult task. The process of evaluating customer satisfaction involves questionnaire and direct interview of customers. These questions include some close ended and open-ended question. Questionnaires were distributed among different customer to receive their feedback.

57

58

7.1 Customers view about various service:

Friendly ness of the employee is very important incase of any service industry. As bank is providing service to the customers employee of banks should be friendly. Reliability is also important because product of a bank involves money all the way. Customers will think an employee reliable while he/she is friendly to the customers. Now what customers think about IBBs employee? Among the respondent 86.7% replied that employee are friendly rest 13.3% replied they are neither satisfied nor dissatisfied. (See Appendix 1A) The cleanliness of the facility is important 66.7% of the respondents reply that they are satisfied with the cleanliness and 33.3% of the respondents said

Friendly ness

Neither satisfied no

Satisfied

Very satisfied

FNOS

10

20

30

40

50

60

70

59

Percent

they neither satisfied nor dissatisfied. It implies that IBB has to work about the cleanliness of the facility. (See Appendix 1B) Availability of alternative service allows customers to choose from different service offer by a bank. The more service are available the possibility of staying a customer with the bank. Analysis says 66.6% of the respondents are satisfied with the available service. Rests of the respondents are neutral. (See Appendix 1C)

selection of services

Neither satisfied no

Satisfied

Very satisfied

SOSA

10

20

30

40

50

60

70

Percent

Accessibility of the facility is a vital part of any service. If a service is accessible to a large group of people, there is a higher probability of purchasing that service by large group of people. Larger the customer size larger will be the return. For an example IBB offers a scheme call Lakhopoti which is well accepted by customer because it is easily accessible. On the other hand Savings Deposit is less accessible many documents and

60

introducers are required, so many people can not use the service even if they want. Analysis said 43% of the respondents are satisfied with the accessibility of the facility. Out of the rest 50% are neutral and 6.7% are dissatisfied. (See Appendix 1D)

15 10 5 0 Neighter satis or Satisfied dis Dissatisfie d Dissatisfied Satisfied Very Satisfied S1

Value vs pricing of the services are a vital issue. If people think they are charged higher price for the service they are receiving compare to other bank than they will no more be willing to stay with an organization. Setting competitive price might be a good idea. Analysis shows that 57.6% of the respondents are satisfied with current status. Rests of the respondents are in neutral position.

20 15 10 5 0 Neighter satis or dis Satisfied

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Series2

Speed of the service: Most of the customer wants to receive quality service at a minimum time. Providing service at a minimum possible time is a challenge for any service industry, which includes bank. Analysis shows that 36.7 % of the respondents are not satisfied with speed of the service, 33.3 % of the respondents remains neutral only 30% said they are satisfied. (Please

Satisfied 30%

Neigher Sat or Dis 33%

Dissatisfie d 37%

see Appendix - 1F). Analysis shows customers are dissatisfied with the speed of the service thats why; I tried to go into the depth of the problem. First I tried to find out whether there are any relationships between repeat customer and time required result shows repeat customers get faster service than who are not. It implies known customer gets faster service. Analysis shows there is no gender effect in case of speed of the service. (See Appendix 1G)

Findings:
On the basis of previous analysis and practical experience of 3 months internship program, the following findings are observed during the research period:

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 Centralized decision making in case of deposit, loan and L/C opening is a problem. Employees are very friendly about customer service in IBB, Mirpur. Accounting opening process is very hazardous. It discourages people to open new accounts. Customers are satisfied about the cleanliness of the branch. Prime Bank Ltd. is following a conservative procedure for any types of investment decision include loan, opening a LC and bank guarantee. Customers are satisfied about the available service and current status of the branch. Lack of manpower in all Departments. The manpower of any section is not sufficient for service. As Prime Bank Ltd. is not a foreign bank so they can not attract as much as clients for foreign trade. Because Clients prefer foreign bank for foreign transaction. Day by day new upcoming banks are coming with many new services, which are a threat for the bank. Customer of the IBB, Mirpur are neutral about the accessibility of the facilities. Bangladesh is a developing country and its economic growth is not that much high. So slow growth of the economy is a very vital problem for a bank. Strict controlling of Central Bank in on the local bank.

63

 Prime Bank Ltd. is not using advance and develop software for quick customer service. They are using only one software which is not enough. Prime bank does not have pure online banking, this forced the employee to prepare too many voucher. Many times customer suffers very much because of this lacking. Most of the customers of the bank ask for more quality service especially quick, accurate service from bankers as they think a private bank should provide such quality sufficiently. It has been found that inappropriate and slow work process often compels the customers to compare the bank with government bank, which is not a good indication for the reputation of the bank. Customers are not treated equally; persons referred by higher official get priority. This disrupts the normal process of the service. Office decoration is good. In many department there are sit for customers. PBL is not upgrading them with market. Where newer banks are coming with newer dimension of banking. It might encourage other bank take away its position.

7.2 Management View about various services:

I talked with the management about the problems. They believe they provide faster service than other banks. Management think speed of the service depends on number of customer. PBL has a slogan of thirty second cheque payment. Account opening process is easier in Prime Bank compare to other bank said by management. They note that if you do not know a man you will
64

not allow him/her to enter into your house. It means they support introducer requirement in case of account opening. Money laundering act forced PBL to introduce strict policy for account opening. Banks from all over the world are currently trying to develop newer products and add newer technologies. They are doing this for serving customer at a minimum possible time. Their main focus is to satisfying customer. They are making sure basic of the banking services are performed correctly. PBL must do the same to survive in the market. If they continue doing what they are doing now, I afraid it will be able to hold its current position.

65

66

8.1 Conclusion:
It was great pleasure for me to do my internship in a reputed organization like Prime Bank Ltd. Though my practical exposure in PBL. IBB, Mirpur for just three months. It provides me a wide range of scope to observe the different functions of the bank through the cordial assistance of its members. I had the scope to observe the functions focused on customer relation. This is a vast area; I had opportunity of observing the activity of all the departments. I worked mainly in the front line. I think that, management should appoint at least few employees in all the departments. As, I have seen from my practical experience that many customers wait for a long time for any service as they see that the concerned officials are doing their best to meet the requirements of the customers. Some of the IBBs current employees do not want to understand customer wants quality service at minimum possible time. PBL should arrange some training programs, which will help its employee to improve their quality and speed of the service. If PBL think customers are bound to come to us even if we behave like a government bank, they are wrong. They should understand time of old days banking is over. PBL management is now sleeping they must wakeup to save its current position otherwise some body else will take away its position. With some limitation, what I have observed is the bank has the vision to be the best private commercial bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management etc.

67

The branch is maintaining a well-structured communication from top to bottom level. Each official should be valued treated as a part of the bank and they must have the privilege to devote themselves for the betterment of service of the bank. Prime Bank places utmost importance on managing credit risk. The whole process includes management of credit risk, foreign exchange risk, prevention of money laundering, asset liability management, internal control and compliance. They should modernize themselves to always have the bigger pie of the cake meaning to hold the top position. All it took to grow is having satisfied customers. So PBL should satisfy its customer with all possible effort and the customer service quality of Prime Bank Limited is better than all other local bank in Bangladesh.

7.2 Recommendation:
I had the practical exposure in Prime Bank Ltd. IBB, Mirpur for just three months, with my little experience in the bank in comparison with vast and complex banking system, it is very difficult for me to recommend. I have observed some shortcomings regarding operational and other aspects of their banking. On the basis of my observation I would like to recommend the following recommendations Decentralized decision making process should introduce. Some investment and deposit decision should be given to the local branch. In some cases Bank should be reduce its conservatism, because it is the age of hyper competitiveness. Chance may be lost because of conservative policy. PBL should abolish introducer requirement incase of new account opening.

68

 It can improve its payment system through automation. It will reduce cost as well as make the service faster for customer. Diversified newer service should be introduced, to meet the customer need. Service first policy should be introduced. So that every body get faster service. In case of Export L/Cs, the Government encourages the exporters by giving different facilities like tax-cuts. I think the bank should also think about such type of facilities to be given to the Exporters because Bangladeshi Exporters like readymade garments Exporters are going to face a tuff situation in coming years from the exporters of other countries. In case of Export L/Cs, sometimes customers insist to give their payments though their documents are found discrepant. In some cases, Bank has to give payment to these customers for different reasons. But it lessens the credibility of the Bank. I think the Bank should be as stricter as possible about giving payments against discrepant documents without hurting the customers. The bank should try to arrange more training programs for their officials. Quality training will help the official to enrich them with more recent knowledge of banking and improve their skill. Over burden of work and ill defined assignment unable the employee to discharge their duties in cool manner. It is also creates a hazardous situation in the work process. So all the employee should be assigned with proper and specific assignment.

69

 Bank can introduce more advanced MIS system to mobilize its day to day activities. It will help the employee to do their works more quickly and maintaining their quality of work. They should expand their business more balancing way which means they should not focus on a particular industry like RMG industries. IBB should introduce pure online banking. It will create value for the bank. Customers are satisfied with the online banking. IBB should immediately do something to reduce time required for serving a customer. It might be done through redesign the work responsibility.

70

 Financial markets and institutions. Jeff Madura. www.prime-bank.com Annual reports of Prime Bank Ltd. Customer satisfaction: at what price? By KPMG Bangladesh Bank Annual Report July 2004-June 2005, Dhaka.2006. Akkas, S. M. Ali (2003), Islamic Book, Secretary Islamic Economics research Bureau, Dhaka. Haider, Ali Miah, A Hand Book of Islamic Banking and Foreign Operations. Web page of PRIME Bank Limited Booklet of PRIME Bank Ltd. The Bangladesh Bank Order 1972. Brochures of Prime Bank Limited Prime Bank Limited, Circular of customer service. General Banking Operational Manual, PBL.

71

72

Appendix 1A Percent Neither satisfied 13.3 nor dissatisfied Satisfied Very satisfied Total 60.0 26.7 100.0 Valid Percent 13.3 60.0 26.7 100.0 Cumulative Percent 13.3 73.3 100.0

Appendix 1B Percent Neither satisfied nor 33.3 dissatisfied Satisfied Very satisfied Total 56.7 10.0 100.0 Valid Percent 33.3 56.7 10.0 100.0 Cumulative Percent 33.3 90.0 100.0

Appendix 1C Neither satisfied nor dissatisfied Satisfied Very satisfied Total Percent Valid Percent 33.3 33.3 63.3 3.3 100.0 63.3 3.3 100.0 Cumulative Percent 33.3 96.7 100.0

73

Appendix 1D Percent Valid Percent Dissatisfied 6.7 6.7 Neither satisfied nor 50.0 50.0 dissatisfied Satisfied Very satisfied Total 40.0 3.3 100.0 40.0 3.3 100.0 Cumulative Percent 6.7 56.7 96.7 100.0

Appendix 1E Neither satisfied nor dissatisfied Satisfied Total Percent Valid Percent 43.3 43.3 56.7 100.0 56.7 100.0 Cumulative Percent 43.3 100.0

Appendix 1F Percent Dissatisfied Neither satisfied nor dissatisfied Satisfied Total 36.7 33.3 30.0 100.0 Valid Percent 36.7 33.3 30.0 100.0 Cumulative Percent 36.7 70.0 100.0

CUSTOMER SERVICE SURVEY Prime Bank Limited Islamic Banking Branch, Mirpur. Please take a few moments to answer the following questions. Thank you.

74

The friendliness of the staff? Very dissatisfied Dissatisfied Neither satisfied nor dissatisfied The cleanliness of the facility? Very dissatisfied Dissatisfied Neither satisfied nor dissatisfied The selection of services that is available? Very dissatisfied Dissatisfied Neither satisfied nor dissatisfied The accessibility of the facility? Very dissatisfied Dissatisfied Neither satisfied nor dissatisfied Satisfied Very satisfied Satisfied Very satisfied Satisfied Very satisfied Satisfied Very satisfied

The value vs. pricing of the services? Very dissatisfied Dissatisfied Neither satisfied nor dissatisfied The speed of the service? Very Dissatisfied Neither Satisfied Very satisfied
75

Satisfied

Very satisfied

dissatisfied

satisfied nor dissatisfied

How often do you use this facility? Infrequent Once per month Once per week More than once per week Are you a repeat customer? Yes No What MOST attracts you to this company?

If you could change one thing about this company, what would that be?

Personal details: Name: Occupation:

76

Gender:

Male

Female

Age:

18 25

25 40

40 above

77