General Banking and Foreign Exchange Activities of Bank Asia Limited

The major objective of this report is to analysis General Banking and Foreign Exchange Activities of Bank Asia Limited. General objectives of this reports are to acquaint with day–to–day functioning of service oriented banking business, to have practical exposure in banks that will help a lot to understand the future courses of the program, to be familiar with day to day functioning and service offered by a commercial bank, to observe and analyze the performance of the specific branch and the bank as a whole and to make a bridge between the theories and practices on banking operations.

 

Objective of the study –

The study has been undertaken with the following objectives:

Broad Objective –

The main purpose of this report is about is to explore the deposit mobilization activities of National Bank Ltd of Dhanmondi Branch.

The specific objectives –

  • To acquaint with day–to–day functioning of service oriented banking business;
  • To have practical exposure in banks that will help a lot to understand the future courses of the program
  • To be familiar with day to day functioning and service offered by a commercial bank.
  • To observe and analyze the performance of the specific branch and the bank as a whole.
  • To make a bridge between the theories and practices on banking operations.
  • To find out the internal and external lacking in the daily operation that would help to National Bank Limited for more progress.
  • To present an overview of National Bank Ltd.
  • To appraise the performance of National Bank Ltd.
  • To apprise financial performance of National Bank Ltd.
  • To identify the problems of National Bank Ltd.
  • To recommend/ remedial measures of the development of National bank Ltd.

 

Banking in Bangladeshi Perspective –

Banking is the backbone of the national economy. All sorts of economic & financial activities revolve round the axis of the bank. As the industry produces goods & commodities, so does the banks create & control the money market & promotes the formation of the capital. From the point of view banking a technical profession can be termed as industry. Services to its customers are the products of the banking industry besides being a pivotal factor in promoting capital formation in the country. As all economic & fiscal activities revolve round this important industry, the role of banking can hardly be over emphasized.

Circumstances being such, it becomes imperative to find out the role of banks now playing in the country & analyze its operational aspects so as to ascertain the importance of this fragile financial sector & its overall impact on the national economy. To do this a through study as to its distribution, expansion & contribution is essential to comprehend its past, present & future bearings for the growth & development of the banking sector of the country.

In global context, the role of banks is far reaching & more penetrating in the economic & fiscal discipline, trade, commerce, industry, export & import et5c all are carried through the banks. Banks are the only media through which the international trade & commerce are being carried out .Moreover the entire credit transaction, both national & international is done through the banks.

 

History and Heritage of NBL –

National Bank Limited has its prosperous past, glorious present, prospective future and under processing projects and activities. Established as the first private sector Bank fully owned by Bangladeshi entrepreneurs, NBL has been flourishing as the largest private sector Bank with the passage of time after facing many stress and strain. The member of the board of directors is creative businessman and leading industrialist of the country. To keep pace with time and in harmony with national and international economic activities and for rendering all modern services, NBL, as a financial institution automated all its branches with computer network in accordance with the competitive commercial demand of time. Moreover, considering its forth-coming future the infrastructure of the Bank has been rearranging. The expectation of all class businessman, entrepreneurs and general public is much more to NBL. Keeping the target in mind NBL has taken preparation to open 15 new branches and 5 SME centers by the year 2009. In addition we are further expanding our presence through developing and expanding the SME financing, Any Branch Banking, Off-shore Banking facilities

The emergence of National Bank Limited in the private sector is an important event in the Banking arena of Bangladesh. When the nation was in the grip of severe recession, Govt. took the farsighted decision to allow in the private sector to revive the economy of the country. Several dynamic entrepreneurs came forward for establishing a bank with a motto to revitalize the economy of the country

National Bank Limited was born as the first hundred percent Bangladeshi owned Bank in the private sector. From the very inception it is 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, Dilkusha 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 106 branches spread all over the country. Besides, the Bank has drawing arrangement with 415 correspondents in 75 countries of the world as well as with 37 overseas Exchange Companies located in 13 countries. NBL was the first domestic bank to establish agency arrangement with the world famous Western Union in order to facilitate quick and safe remittance of the valuable foreign exchanges earned by the expatriate Bangladeshi nationals. NBL was also the first among domestic banks to introduce international Master Card in Bangladesh. In the meantime, NBL has also introduced the Visa Card and Power Card. The Bank has in its use the latest information technology services of SWIFT and REUTERS. NBL has been continuing its small credit programme for disbursement of collateral free agricultural loans among the poor farmers of Barindra area in Rajshahi district for improving their lot.Alongside banking activities, NBL is actively involved in sports and games as well as in various Socio-Cultural activities. Upto 2008, the total number of employee of NBL stood at 2,737.

Since the very beginning, the Bank exerted much emphasis on overseas operation and handled a sizeable quantum of homebound foreign remittance. The Bank established extensive drawing arrangement network with Banks and Exchange Companies located in important countries of the world. Expatriates Bangladeshi wage earners residing in those countries can now easily remit their hard-earned money to the country with confidence, safety and speed.

The Bank earned a profit before tax of Tk. 2,828.80 million for 2008, a growth of Tk. 793.70 million or 39 percent, over the normalized profit before tax for 2007.The Bank’s profit after tax and provision for 2008, at Tk. 1,517.40 million reflected an even stronger growth of 22.51 percent or Tk. 1,238.10 million, over the normalized profit after tax for 2007. In 2008 Bank’s revenue was Tk. 8,893.10 million, which was up by Tk. 1,710.50 million or 23.81 percent. The bank’s total loans and advances portfolio was Tk.49, 665.10 million at the end of December 2008 compared to Tk.36, 475.70 million at the end of December 2007. The deposit base of the bank registered a growth of 25.51 percent in the reporting year over the last year and stood at Tk. 60,195.20 million in December 2008. This was achieved with better management of interest margins in volatile market conditions and adequate Balance Sheet growth during the period. Being a regular tax payer, we have made a direct contribution to Government Exchequer of Tk. 761.70 million in the calendar year 2008 against Tk. 449.70 million in previous year registering a staggering growth of 69.38 percent.

National Bank, has now acquired strength and expertise to support the banking needs of the foreign investors. NBL stepped into a new arena of business and opened its Off Shore Banking Unit at Mohakhali to serve the wage earners and the foreign investors better than before.

National Bank, since its inception, was aware of complying with Corporate Social Responsibility. In this direction, we remain associated with the development of education, healthcare and sponsored sports, culture and during the times of natural disasters like floods, cyclones, landslides we have extended our hand to mitigate the sufferings of victims. The bank established the National Bank Foundation in 1989 to remain involved with social welfare activities. The foundation is running the NBL Public School & College at Moghbazar where present enrolment is 1140. Besides awarding scholarship to the meritorious children of the employees, the bank has also extended financial support for their education. It provided financial support to Asiatic Society of Bangladesh at the time of their publication of Banglapedia and observance of 400 years of Dhaka City.

Transparency and accountability of a financial institution is reflected in its Annual Report containing its Balance Sheet and Profit & Loss Account. In recognition of this, NBL was awarded Crest in 1999 and 2000, and Certificate of Appreciation in 2001 by the Institute of Chartered Accountants of Bangladesh.

A team of highly qualified and experienced professionals headed by the Managing Director of the Bank who has vast banking experience operates bank and at the top there is an efficient Board of Directors for making policies.

 

Deposit Mobilization

Deposit Products of NBL –

  • Current Deposit
  • Short Term Deposit
  • Fixed Term Deposit
  • Monthly Deposit
  • RFC Deposit
  • NFC Deposit

Savings Deposit –

National Bank Limited offers customers a hassle free and low charges savings account through the branches all over Bangladesh.

Benefits (Condition Apply)

  •  Interest rate of 6.00% on average monthly balance.
  •  Minimum balance Tk.1000.
  •  Maintenance charge yearly Tk. 400.
  •  No hidden costs.
  •  Standing Instruction Arrangement are available for operating account.

Account Opening

  •  2 copies of recent photograph of account holder.
  •  Nominee’s Photograph.
  •  Valid photocopy of Voter ID Card.

Current Deposit –

National Bank Limited offers customers current deposit facility for day-to-day business transaction without any restriction.

Benefits (Condition Apply)

  •  Minimum balance Tk.2000.
  •  Minimum maintenance charge yearly Tk. 800.
  •  No hidden costs.
  •  Standing Instruction Arrangement are available for operating account.
  •  Easy access to our other facilities.

Account Opening

  •  2 copies of recent photograph of account holder.
  • TIN certificate.
  • Nominee’s Photograph.
  • Valid photocopy of Voter ID Card.

Short Term Deposit –

National Bank Limited offers interest on customer’s short term savings and gives facility to withdraw money any time.

Benefits (Condition Apply)

  •  Minimum balance Tk. 2000.
  •  Minimum maintenance charge yearly Tk. 800.
  •  Standing Instruction Arrangement are available for operating account.

Account Opening

  •  2 copies of recent photograph of account holder.
  •  Nominee’s Photograph.
  •  Valid photocopy of Voter ID Card.

Fixed Deposit –

National Bank Limited offers fixed term savings that will scale up your savings amount with the time.

Benefits (Condition Apply)

  •  Any amount can be deposited.
  •  Premature encashment facility is available.
  •  Overdraft facility available against term receipt.

Account Opening

  •  1 copy of recent photograph of account holder.
  •  Nominee’s Photograph.

Monthly Savings –

National Bank Limited offers monthly savings scheme for it’s retail customers.

Benefits (Condition Apply)

  •  Monthly amount can be 500 and multiple of it.
  •  Premature encashment is available for urgent need.
  •  Loan facility can be available up to 80% against NMS account balance.
  •  Standing instruction facility can be available to auto transfer installment to NMS account.

Account Opening

  •  1 copy of your recent photograph.
  •  Nominee’s Photograph.

 

RFC Deposit –

National Bank Limited gives opportunity to maintain foreign currency account through it’s Authorized Dealer Branches. Bangladesh nationals residing abroad or Foreign nationals residing abroad or Bangladesh and foreign firms operating in Bangladesh or abroad or Foreign missions and their expatriate employees.

Benefits (Condition Apply)

  •  No initial deposit is required to open the account.
  •  Interest will be offered 1.75% for US Dollar Account , 3.00 % for EURO Account and 3.25% 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.

Account Openingount Opening

  •  2 copies of recent photograph of account holder.
  •  Nominee’s Photograph.
  •  Passport Copy.
  •  ID of residence in abroad.

 

 NFC Deposit –

National Bank Limited gives opportunity to maintain foreign currency account through its Authorized Dealer Branches. All non – resident Bangladeshi nationals and persons of Bangladesh origin including those having dual nationality and ordinarily residing abroad may maintain interest bearing NFCD Account.

Benefits (Condition Apply)

  •  NFCD Account can be opened for One month, Three months, Six months and One Year through US Dollar, Pound Starling, Japanese Yen and Euro.
  •   The initial minimum amount of $1000 or 500 Pound Starling or equivalent other designated currency.
  •  Interest is paid on the balance maintain in the Account. This interest is tax free in Bangladesh.

Account Opening

  •  2 copies of recent photograph of account holder.
  •  Nominee’s Photograph.
  •  Passport Copy.
  •  ID of residence in abroad.

 

Loan Products of NBL –

  • Over Draft
  • Lease Finance
  • Home Loan
  • SME Loan
  • Consumer Credit
  • Trade Finance

Over Draft –

NBL offers overdraft facility for corporate customers for day-to day business operations.

Benefits (Condition Apply)

  •  Low charges in overdraft account maintenance.
  •  Facility is available against deposit receipt or mortgage property.
  •  Low interest rate 13-16%.

Account Opening

  •  Introductory current account.
  •  Others necessary documents as per loan requirement.

Lease Finance –

National Bank Limited offers leasing facility for clients with easy installment facility.

Financing Area

  •  Capital machinery.
  •  Different equipments.
  •  Gas, Diesel generator and Power plant.
  •  Medical equipments.
  •  Lift or elevator.
  •  Inroformation Technology equipments.
  •  Construction equipments.
  • Consumer durables.

Benefits (Condition Apply)

  •  Competitive monthly rental.
  •  Tax benefit.
  •  Fast processing.
  •  Easy handover after leasing period.

Home Loan –

NBL offers home loan facility for purchasing flats or construction of house.

Benefits (Condition Apply)

  •  Financing amount extends up to 70% or Tk. 75, 00,000 which is highest of total construction cost.
  •  Grace period available up to 9 months in flat purchase or 12 months in construction.
  •  Competitive interest rate.
  •  No application or processing fee.

Eligibility

Any Bangladeshi citizen or NRB, who is capable of repayment, can apply for this loan.

SME Loan –

NBL offers financial support to small businessmen/enterprise with new products named “Festival Small Business Loan” and “NBL Small Business Loan” has been introduced in the Bank.

Benefits (Condition Apply)

  •  Maximum Tk.3.00 lac (Festival Scheme) and Maximum Tk.5.00 lac (Small Business Scheme).
  •  3 Months (Festival Scheme) and 5 years (including 1 month grace period (Small Business Scheme))
  •  Collateral Free Advance.

Eligibility

Any genuine and small businessmen/ entrepreneurs/enterprise having honesty, sincerity, and integrity.

Customer Loan –

NBL offers consumer credit facility for retail customers.

Financing items

  •  Electronics consumer products.
  •  Computer or Computer accessories.

Benefits (Condition Apply)

  •  Fast processing.
  •  Competitive interest rate.
  •  No application or processing fee.
  •  Easy monthly installment.

 

Trade Finance –

NBL provides comprehensive banking services to all. types of commercial concerns such as in the industrial sector for export-import purpose as working capital, packing credit, trade finance, Issuance of Import L/Cs,Advising and confirming Export L/Cs. – Bonds and Guarantees.

Benefits (Condition Apply)

  •  Low interest rate 13.00%-14.50%.
  •  Minimum processing time.
  •  Low service charges.

 

Card Products of NBL –

  • Credit Card
  • Power Card

Credit Card –

NBL Credit Card is accepted in many merchant outlet around the world. Our wide range of merchants include hotels, restaurants, airlines, & travel agents, shopping malls and departmental stores, hospitals & diagnostic centers, jewelers, electronics & computer shops and many more.

Benefits (Condition Apply)

  •   50% Cash withdrawal facility.
  •  No hidden costs.

Power Card –

NBL Power Card is the first debit card for which you don’t have to maintain any account with our any branch.

Benefits (Condition Apply)

  •  It is a Pre-paid Card.
  •  Annual / Renewal Fee Tk. 200/- only.
  •  May be issued and refilled from RFCD/FC Account.
  •  Accepted at all VISA POS merchants.
  •  Cash withdraw at all ATM booths bearing VISA and Q-cash logo (Except HSBC in Bangladesh).
  •  Drawing of Cash: (i) from NBL ATMs – Free of charges (ii) From ATMs under Q-cash network- Tk.10.00 per transaction (iii) From other ATM – Tk. 100.00 per transaction.
  •  Cash Withdraw Fee (aboard)-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.

Account Opening

  •  2 copies of your recent photograph.
  •  Nominee’s Photograph.

 

Analysis & Findings

Introduction –

Bank is the life of modern economy. The survival of a bank depends on how efficiently it can manage it customers with its service & facilities through its Deposit Mobilization. The major work of Deposit Mobilization is to collect deposit from the people it serves & invest that money in various sectors. All of the main activities of a bank run through the deposit it collects from its clients. Such as loan providing to its clients, investing in different sectors, providing interest & so forth. No bank can run without efficient Deposit Mobilization. Today’s business world is depended on banks of each its activities. People want the security of their money, they need a intermediary for payment & even they need to have profit with their idle money. All these activities are entertained by banks through Deposit Mobilization. Bank does not only provide service to the business people but also to the student & other categories through different services.

Analysis –

From the study, I have made the analysis of some discussion among various accounts of deposits & loan & also its impact on the customer satisfaction level of National Bank Ltd, Dhanmondi Branch, Dhaka.

Current Account –

From the observation of the current account’s graph we find that the amount of current account is TK.25, 85,000 /= & the number of account opening is 8 in January, 2009 which increase gradually in the month of June up to TK. 42,70,000/= & number of account is 25 but suddenly the amount of account and number of account is decrease to TK.18,50,000/= & 6 in the month of April,2009.The reason for decreasing amount of account & number of account at that time there are few customer who open current account in the month of April. Where we also find that the total accounts open in last six months is 84 & the amount is TK.1, 81, 72,000.00/=which shows there are averagely 14 accounts open & average amount is TK.30, 28,666.67/=in every month.

Table –

MonthDateNo of A/CBalance
January01.01.2009 to 31.01.20090825,85,000.00/=
February01.02.2009 to 28.02.20091530,12,000.00/=
March01.03.2009 to 31.03.20091227,00,000.00/=
April01.04.2009 to 30.04.2009618,50,000.00/=
May03.05.2009 to 31.05.20091837,55,000.00/=
June01.06.2009 to 30.06.20092542,70,000.00/=

 

Savings Account

From the observation of the savings account’s graph we find that the amount of savings account is TK.19, 23,000 /= & the number of account opening is 52 in January, 2009 which increase gradually in the month of June up to TK. 89,37,000/= & number of account is 126 but suddenly the amount of account and number of account is decrease to TK.14,50,000/= & 40 in the month of April,2009.The reason for decreasing amount of account & number of account at that time there are few customer who open current account in the month of April & also the bank decrease its interest rate on that month. Where we also find that the total accounts open in last six months is 447 & the amount is TK. 2, 25, 39,000.00/=which shows there are averagely 74.5 accounts open & average amount is TK. 37, 56,500.00/= in every month.

Table – 

MonthDateNo of A/CBalance
January01.01.2009 to 31.01.20095219,23,000.00/=
February01.02.2009 to 28.02.20096826,42,000.00/=
March01.03.2009 to 31.03.20097532,55,500.00/=
April01.04.2009 to 30.04.20094014,50,000.00/=
May03.05.2009 to 31.05.20098643,31,500.00/=
June01.06.2009 to 30.06.200912689,37,000.00/=

 

Short Term Deposit –

From the analysis of the short term deposit’s graph we find that the amount of short term deposit account is TK.1,10,00,000 /= & the number of account opening is 15 in January, 2009 which increase gradually in the month of June up to TK. 5,00,00,000/= & number of account is 26 but suddenly the amount of account and number of account is decrease to TK.83,00,000/= & 8 in the month of April,2009.The bank provides low interest rate on short term deposit at that time & that’s why the amount of account & number of account also decrease at the month of April,2009. Where we also find that the total accounts open in last six months is 101 & the amount is TK. 12, 11, 00,000.00/=which shows there are averagely 16.83 accounts open & average amount is TK. 2, 01, 83,333.33/= in every month.

Table –

MonthDateNo of A/CBalance
January01.01.2009 to 31.01.2009151,10,00,000.00/=
February01.02.2009 to 28.02.2009171,98,00,000.00/=
March01.03.2009 to 31.03.2009222,23,00,000.00/=
April01.04.2009 to 30.04.2009883,00,000.00/=
May03.05.2009 to 31.05.20091397,00,000.00/=
June01.06.2009 to 30.06.2009265,00,00,000.00/=

 

Monthly Savings Scheme –

From the study of the monthly savings scheme’s graph we find that the amount of monthly savings scheme’s account is TK.12,25,000 /= & the number of account opening is 8 in January, 2009 which increase dramatically in the month of June up to TK. 6,34,49,000/= & number of account is 15 where suddenly the amount of account and number of account is decrease to TK.7,90,000/= & 7 in the month of April,2009.The bank provides low interest rate on monthly savings scheme at that time & that’s why the amount of account & number of account also decrease at the month of April,2009. Where we also find that the total accounts open in last six months is 64 & the amount is TK. 12, 7, 99, 86,000.00/= which shows there are averagely 10.67 accounts open & average amount is TK. 1, 33, 31,000.00/= in every month.

Table – 

MonthDateNo of A/CBalance
January01.01.2009 to 31.01.2009812,25,000.00/=
February01.02.2009 to 28.02.20091394,57,000.00/=
March01.03.2009 to 31.03.20091136,03,000.00/=
April01.04.2009 to 30.04.200977,90,000.00/=
May03.05.2009 to 31.05.20091014,62,000.00/=
June01.06.2009 to 30.06.2009156,34,49,000.00/=

 

FDR (12 & 3 Months) –

(12 Months)

From the study of the FDR’s (12 Months) graph we find that the amount of FDR’s (12 Months) account is TK.1,17,70,000 /= & the number of account opening is 20 in January, 2009 which increase dramatically in the month of June up to TK. 2,07,10,000/= & number of account is 39 where suddenly the amount of account and number of account is decrease to TK.83,00,000/= & 12 in the month of March,2009.The bank provides low interest rate on monthly savings scheme at that time & that’s why the amount of account & number of account also decrease at the month of March,2009. Where we also find that the total accounts open in last six months is 155 & the amount is 7, 96, 57,500.00/= which shows there are averagely 25.83 accounts open & average amount is TK. 1, 32, 76,250.00/= in every month.

Table –

MonthDateNo of FDRBalance
January01.01.2009 to 31.01.2009201,17,70,000.00/=
February01.02.2009 to 28.02.2009231,15,67,000.00/=
March01.03.2009 to 31.03.20091283,00,000.00/=
April01.04.2009 to 30.04.2009281,29,90,000.00/=
May03.05.2009 to 31.05.2009331,43,20,500.00/=
June01.06.2009 to 30.06.2009392,07,10,000.00/=

(3 Months)

From the study of the FDR’s (3 Months) graph we find that the amount of FDR’s (3 Months) account is TK.88,10,000 /= & the number of account opening is 16 in January, 2009 which increase dramatically in the month of June up to TK. 1,23,00,000/= & number of account is 29 where suddenly the amount of account and number of account is decrease to TK.13,42,000/= & 13 in the month of February,2009.At that time there are few customer who open FDR(3 Months) in the month of February & that’s the reason for decreasing the FDR(3 Months) account in February,2009. Where we also find that the total accounts open in last six months is 123 & the amount is 5, 21, 42,000.00/= which shows there are averagely 20.50 accounts open & average amount is TK. 86, 90,333.33/= in every month.

Table –

MonthDateNo of FDRBalance
January01.01.2009 to 31.01.20091688,10,000.00/=
February01.02.2009 to 28.02.20091313,42,000.00/=
March01.03.2009 to 31.03.20091993,00,000.00/=
April01.04.2009 to 30.04.2009251,07,90,000.00/=
May03.05.2009 to 31.05.20092196,00,000.00/=
June01.06.2009 to 30.06.2009291,23,00,000.00/=

 

Loan –

From the critical study of the loan’s graph we find that the loan provided by the bank is TK.14,47,000/= against security of TK.18,51,000/= in January,2009 which gradually increase up to TK.11,02,31,000/= against security of TK.15,30,97,000/= in the month of June,2009.From the study of first four month we can see that bank provides few loans rather than last two months because bank charge high rate of interest at first four months and that’s why customer didn’t agree to get loan at that time. We also find that the total loan account open in last six months is 112 & the amount of loan is 17, 44, 67,000.00/= against the security of TK. 26, 03, 34,000.00/= which shows there are averagely 18.67 loan accounts open & average loan amount is TK. 2, 90, 77,833.33/= against the security of TK.4, 33, 89,000.00/= in every month.

Table –

MonthDateNo of LoanAmountSecurity
January01.01.2009 to 31.01.20091814,47,000.00/=18,51,000.00/=
February01.02.2009 to 28.02.20091530,78,000.00/=44,23,000.00/=
March01.03.2009 to 31.03.20091360,40,000.00/=1,32,47,000.00/=
April01.04.2009 to 30.04.2009171,10,49,000.00/=1,28,60,000.00/=
May03.05.2009 to 31.05.2009214,26,22,000.00/=7,48,56,000.00/=
June01.06.2009 to 30.06.20092811,02,31,000.00/=15,30,97,000.00/=

 

Comments of Depositors about NBL –

  • The bank should provide online services.
  • The bank should establish more ATM booths in various locations in Dhaka
  • Bank should provide debit card within seven days after the application is dropped to the bank.
  • Bank should increase the money limit on the credit cards.
  • Bank should reduce their services charges according to various services.
  • The bank environment is quite good and secured.
  • The bank should start evening banking.
  • The employees of the bank are very cooperative & helpful.

 

Borrower’s Satisfaction –

Loan from Bank –

From the critical observation of the graph we find that the customers can get loan from the bank because the maximum customers are satisfied to the procedures about loans where some people stand in neutral position. So bank should flexible their loan process to turn these neutral customers to satisfied customers.

Table –

Strongly Agree2
Agree5
Neutral3
Disagree0
Strongly Disagree0

Easy to get Loan –

Here we can see there is various comments on getting loan from NBL.Some people are satisfied, some people are neutral and few people are disagree about this matter. Bank should take some steps for their customers to provide loans in an easy way.

Strongly Agree1
Agree4
Neutral4
Disagree1
Strongly Disagree0

 

Types of Loan Scheme –

The Satisfaction level on this subject is quite higher than the dissatisfaction level. So it is up to the bank to retain the level or even make it higher for along time.

 

Table –

Strongly Agree0
Agree6
Neutral2
Disagree2
Strongly Disagree0

Securities against Loan –

From the graph we can see that bank takes securities against loans and most of the customers are agree about this matter. So bank authority should give more concern about the securities against loans.

Table –

Strongly Agree0
Agree8
Neutral2
Disagree0
Strongly Disagree0

Satisfied with Bank’s Interest Rate –

In this graph we can see there is 50 – 50 position of the customers about this topic. Bank should reduce their interest rate against loans and by this process they can turn these dissatisfied customers into satisfied customers.

Table –

Strongly Agree2
Agree3
Neutral4
Disagree1
Strongly Disagree0

Security on Drift –

In this graph maximum customers are preferred SOD (Security on Drift) where some people are not satisfied and some customers are neutral position because some customers want loans from bank without any securities. Bank should promote SOD & motivate their respective loan customers to get loan through SOD.

 Table –

Strongly Agree0
Agree5
Neutral3
Disagree2
Strongly Disagree0

Problem to Close Account –

From the serious observation of the graph we find that customers are not facing any problems when they want to close the loan accounts. It is very positive side of NBL & the authority should carry it on.

 Table 

Strongly Agree0
Agree0
Neutral5
Disagree4
Strongly Disagree1

Satisfied with Services –

Most of the customers are satisfied with the bank’s loan services where some customers are in neutral position. Bank should give more concern about this subject & satisfied those customers who are in neutral position.

Table –

Strongly Agree0
Agree0
Neutral5
Disagree4
Strongly Disagree1

 

Comments of Borrower’s about NBL –

  • Bank should reduce the interest rate on various types of loans.
  • SOD (Security on Drift) is a very good loan system of NBL.
  • The bank should provide education loans, micro credit loans etc.
  • Bank’s employees are very friendly especially who working in loan section.
  • Bank should reduce the amount of securities against various loans.
  • The Loan services and procedures of NBL are quite good.
  • The bank should increase the amount about various loan schemes.
  • The charges of loan account should reduce by the authority.

 

Findings –

ng the period of my internship program I collected various information according to various types of deposit & loan accounts. On the basis of these information and critical observation I find that the Dhanmondi branch of NBL is in a good position. From my point of view I discuss these informations in below:

  • From the observation of various deposit accounts I find that the amount as well as the number of accounts is increasing dramatically day by day. In the month of April, 2009 the most accounts are decrease due to some reasons like rate of interest, account opening is low etc.
  • We can see the performance of monthly savings scheme is very good than other deposit accounts. Other accounts like savings & short term deposit accounts are also appreciated.
  • The authority should more concern about current and FDR accounts because the charts & graph shows that these two types of accounts increase but the level of increasing is not as like as other deposits accounts.
  • The loan provided by the Dhanmondi branch is significantly increasing from last six months but the rate of increase is not sufficient.
  • From the study of the chart & graph I find that the bank provide averagely TK.26,70,250/= from January to April but in last two months the average loan is increase & become TK.5,55,15,500/=.So the authority should give more concern to increase the bank loan.
  • I interviewed 30 deposit customers & they think that the bank should provide online services, establish more ATM booths, reduce the processing time of application regarding various types of accounts, increase the money limit on credit card, reduce service charge etc.
  • I also interviewed 10 loan customers & they suggest that the bank should give more emphasize on these matters like provide education loan, micro credit loans, reduce the amount of securities against loans, the rate of interest should decrease etc.
  • The charts & graphs regarding customers’ satisfaction on deposit & loan account also shows that the customers of dhanmondi branch of NBL is satisfied with the bank services bur they want some improvement in the sectors which is already mentioned in the above. If dhanmondi branch of NBL can improve their service level than the bank can earn more profit & more customers’ satisfaction

 

Conclusion –

Bank is the blood of present financial system. Deposit Mobilization is the bread & butter of any bank. The endurance of any bank depends on how competently it can administer its customers with its services & facilities through Deposit Mobilization. I have work with National Bank as an internee for three months & found many positive reasons of people trust on NBL.I have acquainted with the deposit mobilization procedure of the NBL as it was the part of my internship program. It is an institution which is not only serving people with quality & special service but also serving with great courage. For this reason, the report of NBL is drastically increasing from last year. The analysis shows that NBL has secured its position in the banking business of our country. The track record of NBL mentioned on the analysis is a proof of its tremendous success in banking business. The comparative analysis with some other banks verifies the competitiveness of deposit mobilization of NBL.

However, people do trust on the officers & listen to their advices. The bankers also provide counseling to the clients who need to improve themselves financially. The deposit of NBL is increasing from its inception because people trust on the bank & the relationship with NBL maintains with its clients.Thus, I conclude basing on the analysis that the theme line of National Bank Ltd appropriately matches with the services it offers. The theme of National Bank Ltd is “A Bank for Performance with Potential”.