Retail Banking of the City Bank Limited

About City Retail:

In line with the bank’s strategy of making baking service more accessible to customers, City bank is planning to launce proper banking services and business all branch. All branch of the bank will be brought under sales and service model focusing retail banking business while giving services to all other customer of different business units. Your bank toward the end of 2007 opened a new branch at Nikunjo under the retail banking model.

Understanding customers trend and market demand, the bank launches 3 new deposit product which are: City Onayash, City Ichchapuron, City Projonmo. City Onayash is the daily interest bearing and monthly interest paying saving account, City ichchapuron is a 3 year and 5 year deposit product which offers monthly interest.City projonmo, a deposit product for minors, is a monthly saving scheme that offers attractive maturity value and is backed by insurance.

City bank currently has 9000debit cards and 800 credit cards including dual currency cards-first of its kind in circulation. Re launch credit cards project is now underway and expected to go to the market by 2008.

Fifty new ATMs are project to be launches in 2008 to facilitate reach and convenience and thereby help retail bank to increase is customer base significantly. Already 44 ATM are operation and City bank Customer now can use the Dutch Bangla banks large ATMfleet.TheCity Bank Ltd already set up a Retail finance centre, centralized retail credit and collection management unit, to launch retail loan for individuals. Launch of attractive loan product including life style loan, car loan, and salary loan, professional is currently in the banks product offering.

Your bank has received inward remittance of tk4933million in 2007. Retail banking is recasting Non Resident business (NRB) unit with the business plans and dimensions. The bank is going to new relationship with Kay exchange based mainly in the Middle East and United kingdom and active effort are underway to spread it to other important countries including Saudi Arabia. The bank recognizes the huge potential of this business and understand expectation of this highly sensitive customer segment and its equipped with modern technology to cater those requirements with superior service capabilities.

 Organgram of retail Banking:

Retail Financial Products of City Bank:

One of the most remarkable success stories of last 50 years’ banking industry globally has been the conceptualization and innovative execution of banking with individual customers, their friends & families. The industry has termed it as Retail Banking or Personal Banking or Consumer Banking; and it has now – at a very rapid pace – become the major revenue line for most of the top banks in the world.City Bank, too, recently has started its journey in Retail Banking.“City Retail – add a little city to your life” is the new brand-mantra, the pay-off line for City Retail.

 LIABILITY VALUE CENTER:

 Deposit Products:

City Bank offers a wide variety of deposit products to meet financial needs of the customers. From current and savings accounts to Fixed Deposits and Pension Schemes each account is designed to give the best value for making money.

Retail deposit products of City Bank are as follows:

1. Current Account

2. Savings Account

3. City Onayash

4. Short Term Fixed Deposit

5 .Fixed Deposit

6. City Ichchapuron

7. City Shomriddhi

8. City Projonmo

Required documentation for deposits:

  1. Application form:

    First Applicant Details: The first applicant’s personal details include applicant’s name, occupation, working address, present and permanent addresses.

    Second Applicant Details: If the opening account is a joint account, then it is necessary to write down the second applicant’s personal information.

    Third Applicant Details: It is the same as the second applicant details.

    Induction: The applicants must be introduces by someone who already has an account with the bank.

    Transaction Profile: The applicant must specify the type of account he is intending to open. There is a separate section for fixed deposit and how many times the account holder will be able deposit and withdraw by both cash and cheque.

    Nominees: The applicant can nominate two or more persons for the account. But, from January 2009, one will be able to nominate only one person according to the rules of Bangladesh Bank.

  1. Copy of passport / voter ID / driving license / other kind of identification document.
  2. Photos of the applicant(s) and nominees.

1. Current Account:

Current account of City Bank meets the needs of individual and commercial customers through its schedule benefit.

Features:

Initial depositTk. 10,000
Minimum balanceTk. 5,000
Interest rateNil

 Customer benefits:

  • Cheque-book facility.
  • Opportunity to apply for – safe deposit locker facility.
  • Collect foreign remittance in both T.C. & Taka draft.
  • Transfer of fund from one branch to another by

–        Demand Draft.

–        Mail Transfer.

–        Telegraphic Transfer.

  • Transfer of fund on Standing Instruction Arrangement.
  • Collection of cheques through Clearing House.
  • Online banking service.

Comparison of the current account of City Bank with other banks:

Subject of depositCity bank Ltd.Brac Bank Ltd.Mercantile Bank Ltd.Pubali Bank Ltd.
Minimum opening balance10,00010,0005,0005,000
Interest rateNILNILNILNIL

 2. Savings Account:

It is a sound savings for retail customer.

Features:

Initial depositTk. 5,000
Minimum balanceTk. 500
Interest rate6.50%

 Customer benefits:

  • Cheque-book facility.
  • Opportunity to apply for – safe deposit locker facility.
  • Utility payment service.
  • Collect foreign remittance in both T.C. & Taka draft.
  • Transfer of fund from one branch to another by

–        Demand Draft.

–        Mail Transfer.

–        Telegraphic Transfer.

  • Transfer of fund on Standing Instruction Arrangement.
  • Collection of cheques through Clearing House.
  • Online banking service.

Comparison of the savings account of City Bank with other banks:

Subject of depositCity Bank Ltd.Brac Bank Ltd.Mercantile Bank Ltd.Pubali Bank Ltd.Prime Bank Ltd.Standard Chartered Bank Ltd.
Initial depositTk.5,000Tk.15,000Tk.1,000Tk.500Tk.500Tk.26,500
Minimum balanceTk.500No minimum balance requiredNo minimum balance requiredNo minimum balance requiredTk.2,000Tk.100,000
Interest rate6.5%5.5%7%3.5%6%7%

 3. City Onayash:

City Onayash is a unique kind of savings account which calculates interest on your daily balance and pays interest to you every month.

It is a major departure from the conventional savings account available in the market. All such accounts calculate interest on the average or lowest balance of the month, while City Onayash does on daily product basis. Not only that, while those conventional savings accounts pays interest only twice a year – in December and June City Onayash pays it every month.

Features:

Initial deposit:Tk. 10,000
Interest rate   :5.50%

 Short Term Deposit (STD):

STD is also a special scheme offered by City Bank Limited for the savings of customers.

Features:

Initial deposit:Tk. 10,000
Interest rate   :5%

 Comparison of the STD account of City Bank with other banks:

Name of the bank Ltd.Minimum opening balance
City Bank Ltd.Tk.100,000
Brac Bank Ltd.Tk.100,000
Standard Chartered Bank Ltd.Tk.250,000

4. Fixed Deposit:

Fixed deposit is a scheme for the savings of the customers .The minimum amount of deposit in this scheme is Tk. 50,000.

Fixed Deposit Rate:

Term of DepositInterest Rate
1 month10.00
3 months12.00
6 months11.50
1 year
Below Tk. 1.00 crore12.50
Tk. 1.00 crore to below Tk. 20.00crore13.00
Tk. 20.00 crore and above13.50
2 years12.00

5. City Ichchapuron:

City Ichchapuron is a great opportunity to earn against the savings every month. This product allows earning interest and enjoying interest every month that accrues in the fixed deposit account, no matter what the term of the deposit is.

6. Profitability Matrix:

Features:

TermFixed Deposit AmountInterest RateMonthly Interest (before tax)
3 YearsTk. 1 lac11%Tk. 917.00
5 YearsTk. 1 lac11.5%Tk. 958.00

                                                  

 

7. City Shomriddhi:

City Shomriddhi is a unique offer from City Bank.

City Shomridhdhi is an exceptional DPS product that is distinctly more attractive than the prevalent DPS products in the market. It offers a hefty sum at the end of the term against customer’s monthly deposit of small installments.

Features:

  • No initial deposit required.
  • Monthly installment deposit ranges from Tk. 500 to Tk. 20,000.
  • Flexible tenor of 3, 5, 7 and 10 years.
  • On premature encashment, City bank gives maturity value of nearest term – not the routine savings rate.

Terms and conditions:

  • Account holders have to deposit within the next three days of due date. Otherwise accounts holders will have to pay @2% on the installment arrears as penalty.
  • If any monthly payment remains unpaid for four months, the account will closed automatically.
  • In case of premature closure of the account Tk.300 will be charged as closing charge.

8. City Projonmo:

City Projonmo   is a financial safety for your future generations backed by complete immense protection. City Projonmo is a unique monthly deposit scheme that is opened for the kids to safeguard their future against all uncertainties and risks. As a guardian of the child one can open this account which builds great & unmatchable savings over the years. By the time he/she child is past his or her school age, there is this sufficient cash in your hand to take care of his / her higher education, marriage or other such large expenses.

However, the most interesting part of this scheme is the full insurance protection that the account holder automatically enjoys. This simply means, in case of death or total physical collapse of the parent or guardian, the bank will pay the full value of the scheme for the full term no matter in reality how many months or years have been actually completed by.

Profitability Matrix:

Term Interest Rate
5 years9.25
10 years9.50
15 years9.00
20 years9.00

Comparison of City Projonmo Account of City Bank with Standard Chartered Bank:

City Projonmo of the City Bank Ltd. is similar to the Monthly Savings of the Standard Chartered Bank Ltd.

SubjectCity Bank LtdStandard Chartered Bank
Product tenor5 Years10 Years15 Years

20 Years

3 Years5 Years10 Years
Penal fees for premature closureTk.300Tk.500
Cause of premature closure(automatically)If the monthly installment is not paid for 3 consecutive months.If the monthly installment is not paid for 3 consecutive months.

 Overall situation of the deposit products of City Bank:

The overall situation of the deposit products of City Bank is shown by the following figures:

Million Taka
SI. No.Type of Deposit20082009
AmountShare (%)AmountShare (%)
1Current & others5,815.4714.23%7,625.5918.81%
2Savings7,167.8317.53%7,761.1219.14%
3Short term2,829.346.92%3,229.637.97%
4Fixed deposit18,324.0644.82%16,308.4340.23%
5Scheme6,744.7116.50%5,614.8613.85%
Total deposit40,881.41100%40,539.63100%

 Deposit in Tk. Billion

 ASSET VALUE CENTER:

 Loan Products:

City Bank offers three different types of retail loan products. They are as follows:

  1. City Drive
  2. City Solution
  3. City Express

Documentation required while applying for a loan:

  1. An appropriately filled application form.
  2. Letter of introduction / salary certificate.
  3. Memorandum and articles of association / partnership deed of partnership firm.
  4. Bank statement of previous 6 months.
  5. Copy of professional degree certificate.
  1. Copy ID trade license.
  2. Copy of passport / voter ID / Driving license.
  3. Copy of TIN related documents.
  4. Copy of CIB undertaking report (for City Solution).
  5. All copies are signed and sealed “Seen Original”.
  6. Duly discharged FDR unit certificate.

CARDS VALUE CENTER:

1. Debit Cards:

Visa Debit Card from City Bank makes life of people hassle-free and safe.

Features:

  • Cash withdrawal from 500+ Visa ATMs 24/7/365 all over the country.
  • Shop and dine at hundreds of merchant Visa outlets all over the country.
  • Balance enquiry.
  • Fund transfer from your account to credit card 24/7/365.
  • PIN Change.
  • Mini statement.
  • Cash withdrawal @ Taka 12 per transaction at 250+ DBBL ATMs.

2. Credit Card (VISA):

City Bank is the first bank to issue Dual Currency Credit Card in Bangladesh. This card enables the customers’ simultaneous usage of their cards both in home and in abroad.

Features:

  • Variable Interest Rate.
  • EMI Plan.
  • Balance Transfer.
  • Round the clock cash withdrawal facility at any Visa branded ATM throughout the world.
  • Round the clock purchasing power for goods and services at any Visa branded POS outlet.
  • 24% interest on Cash Advance.
  • No cash Advance fee at CITY ATMs.
  • Lowest Annual/Renewal Fee.
  • International Roaming facility.
  • Internet Transaction.
  • Convenient Repayment option.
  • E-statement.
  • Limited Lost Card Liability.
  • Secured with your Photo – Photo Card.
  • 24 hours customer service help desk.

Eligibility:

  • Bangladeshi Nationals.
  • Age range for primary card holder is 18 years to 60 years.
  • Age range for supplementary card holder is 18 year to 60 years.
  • Age bar can be relaxed for secured cards.
  • Minimum Gross Monthly Income (GMI) for silver card Tk. 12,000.
  • Minimum Gross Monthly Income (GMI) for gold card Tk. 30,000.

3. City Cards (AMEX):

Procedure/Required Documents to get AMEX card:

 For AMEX need to follow mentioned step:

Step1.  Fill up desire Card Application Form (Green Blue Local / Dual or Gold)

Step2.  Provide or attached require following documents.

Documents for Salaried Applicant:

  •  2 copy Passport Size
  •  National ID card
  •  Passport Copy
  •  TIN Certificate
  • Salary Certificate / Latest 3 months pay slip
  •  6 Months Bank Statement / Bank A/c no with CBL

Fees & Charges For AMEX:

ParticularsG/B LocalG/B DualGold Dual
Annual FeesTK. 1,500.00TK. 2,000.00TK. 4,000.00
Annual fees for supplementary cardTK. 750.00TK. 1,000.00TK. 2,000.00
Late payment feeTK. 200.00TK. 300.00TK. 500.00
Over limit ChargeTK. 1,500.00TK. 2,000.00TK. 4,000.00
Cash Advance fee (On us)
Cash advance fee (Remote on us)**FREEFREEFREE
Interest on Purchase & Cash advance30%30%30%
Interest on Balance Transfer22%22%22%
Interest on EMI24%24%24%
Card Cheque book fee (10 Leaves)TK. 100.00TK. 100.00TK. 100.00
Card Cheque Processing fee1%1%1%
Outstation cheque collectionTK. 100.00TK. 100.00TK. 100.00
Cheque return feeTK. 50.00TK. 50.00TK. 50.00
Card replacementTK. 300.00TK. 500.00TK. 750.00
PIN replacement feeTK. 200.00TK. 300.00TK. 500.00

 Key Product Benefits:

Gold Card Gold Card
• Jet Airways – 1 Dhaka-Kolkata -Dhaka Free

Companion Ticket annually

• Westin – Free Companion

Buffet

• Nandan – Cash Back Offer

• Agora – Cash Back Offer

• Concierge Service (SOS

Insurance)

• Theme Park – Free CompanionTicket for FantasyKingdom• Nandan – Cash Back Offer

• Agora – Cash Back Offer

• Baghdad Express – 2 Dhaka-

Cox’s Bazar-Dhaka Free

Companion Ticket annually

• Assistance Service (SOS

Insurance for Green Blue-Dual)

 

 The Terms and Condition Are Given In Bellow:

 Jet Airways:

Offer: Jet and City Bank are jointly providing a “Companion Free Offer” whereby Jet will provide 1 (one) complimentary return economy class ticket on the Dhaka – Kolkata – Dhaka sector to all Gold Cardholders when they purchase an economy class return ticket on the said sector at the prevailing market price.

Westin:

Offer: The Westin Dhaka will allow Amex Gold Card members to have 1 “companion” buffet free for the Card members companion against the 1st buffet which the Card members buys at best counter price at its buffet restaurant.

 Nandan:

Offer: Customer will receive Cash Back amounting to 6 % of an individual. American Express Card member’s monthly grocery purchase made at its Mega shops. The minimum amount qualifying for cash back is 4000 Tk – the customer can make multiple transactions and if they add up to 4000 Tk or more in a month they will be given the maximum 6% rebate

Agora:

Offer: customers will receive a Cash Back amounting to 6% of an individual American Express Card member’s monthly grocery purchase made at its Superstores.

Eligibility/Spend threshold: To be eligible to receive Cash Back, theCard member’s total monthly purchase value at Rahimafrooz Superstores Ltd. (Agora) has to be minimum Tk 4,000. A card member can earn maximum Tk 4000 cash back per month

Validity: November 07, 2009 to December 31, 2010

Fantasy Kingdom:

Offer: The Green / Blue Card member will be eligible for free companion tickets year round at Fantasy Kingdom Theme Park (which will include Water Kingdom also) on a one-for-one basis which means theCard member’s purchase of the first ticket at full price or best counter price will allow him / her to get one companion ticket free.

Eligibility: Spend threshold: City Bank Amex Green Blue Card holders are eligible for this offer. Bank will send 10 vouchers to Card members along with welcome pack of the card.

 Baghdad Express:

Offer: Green Blue Card member will be eligible for two complimentary free companion tickets per year to the same destination and class of travel upon purchase of the Dhaka-Cox’s Bazar-Dhaka bus ticket from Baghdad Express, Mercedes Benz Royal Class buses.

Eligibility/Spend threshold: CMs must spend BDT 30,000 in 6 months to get 2 complimentary companion return tickets. Each CM has 2 cycles in a year to qualify for this offer. City Bank Green Blue Amex Card holders are eligible for this offer.

Retail Finance Centre:

Retail Finance Center (RFC) is the centralized department for evaluating credit risk in consumer lending. The department is consist of a team of people to identify, analyze, measure and manage risk related to consumer credit.

Due to the asymmetric information and moral hazard, banks have to suffer a lot due to the bad loans and advances, which weakens the financial soundness of the bank. If the selection of borrower is correct, that is, the borrower is of good character, capital and capacity or of reliability, resourceful and responsible; the bank can easily get the return from the lending. RFC made this monitoring much more easier. LAP comes from 22 branches of CBL in RFC. Based on their detailed investigation and analysis higher authority approved or declined the loan applications. So that chance of bad loans lessens.

All unsecured retail loans will be processed, monitored and managed by the RetailFinanceCenter. Each loan application after recommendation from Officer Lending Support will be approved/ declined by higher authority at RetailFinanceCenter

Credit Approval Procedure:

Studying past track record: After getting an application for a loan, a CBL Official studies the past track record of the applicant. Generally the study includes,

  •   Account balances and the past transactions.
  • Credit report from other banks.
  • Information of the Industry by studying market feasibility.
  • Financial statements (balance sheet, cash flow statement, and income statement). If the borrower is a sole- proprietor, then the single entry accounting treatment is converted to double entry system.
  • Report from Credit Information Bureau of Bangladesh Bank if the amount is more than TK.10 lac.

Borrower analysis:

Borrower analysis is done from the angle of 3-C (character, capital, capacity) or 3-R (reliability, resourcefulness, responsibility). It follows that the bank forms a rational judgment about the integrity of the borrower, which should be undoubted. The human skill, conceptual skill, operational skill is qualitatively analyzed.

Monitoring Process in Retail Banking:

Consumers are all individuals, professionals, housewives, doctors, and engineers, etc and high net worth individuals. Monitoring of Retail Banking is one by “Sales and Service center.” They keep record of all the documents. If there is any exception, they monitor it and send it to the clients and request it to adjust it. Head Office credit risk management finally monitors all branches Retail Banking by using Management Information System (MIS). Eastern Bank Limited give maximum emphasis on Retail Banking.

 City Foreign Remittance (NRB):

The City Bank’s Foreign Remittance unit meets growing customer needs for fast, secure & easy money transfers to an extensive range of destinations. Being a committed bank to its customers, it goes all the lengths to remit customers hard earned money safely to their loved ones.

 POLICY & ANALYSIS:

The policy & analysis document for direct sales team consists of 8 sections.

  1. DST center & organogram
  2. DST head court ceiling & its allocation
  3. Recruitment, promotion & code of conduct
  4. Salary & compensation
  5. commission structure
  6. Reward & recognition
  7. Non performer policy
  8. DST permanent employment policy

City Bank Ltd