Customer Service Recovery Strategy of National Bank Limited
Subject: Finance | Topics:


The financial institutions that support people at the time of necessary are bank. Bankers deal with two sensitive things of the society, Men and Money. So all the banks should be top quality in all aspects of professional life to ensure highest service to its customers. This report represents three (3) months working experience in National Bank Limited (FOREIGN EXCHANGE BRANCH) This report will gives a clear idea about the general Banking, activities of the bank.

Though there is some present limitations, NBL has tremendous potentiality and prospect in Bangladesh.

A practical part of BBA course I give my emphasis on preparation of internee report on Customer Service Recovery Strategy of National Bank Limited. The  NBL is a pioneer private bank in Bangladesh.


 Origin of the report:

The BBA internship program is a required course for the students who are graduating from the Business Administration Department of East West University. It is a 4 credit hour course with duration of 12 weeks. Students who have completed all the required courses are eligible for the course.

In the internship program, I was attached to a host organization works with the help of the internal supervisor. As a result I have decided to make a report on “Customer Service Recovery Strategy of National Bank”. I’ve prepared the report and finally submitted to my supervisor on April 10, 2006.

Background of the report:         

Banking is one of the most important sectors for a country’s wealth building activities. At present the modern business industrialization, foreign trade almost is dependent on banks. But now a day the Banking sector of Bangladesh is suffering the disease of default culture which is consequence or result of bad performance of most of the banks in Bangladesh.

National Bank Limited playing an important role towards the growth and economic development of Bangladesh.

This study is an attempt to produce a constructive report performance of National Bank Limited.

I am working in the Foreign Exchange Branch of National Bank Limited.

Objective of the report:

The study has been undertaken with the following objectives:

The main objective of education is to acquire knowledge. To acquired knowledge ultimately we must do some practical application in addition to theoretical knowledge. Through this report, I tried my level best to present my practical knowledge as well as to find out-

  • To get an overall idea about the foreign trade performance of National Bank Limited
  • To fulfill the requirement of the internship program under BBA program

General objective

  • To gain Practical job experiences and view the application of theoretical knowledge in the real life.

Project objective

  • To know National Bank Limited (Foreign Exchange Branch)’s customers’ different queries.
  • To know National Bank Limited (Foreign Exchange Branch)’s customers’ view on bank’s current level of services’ quality and standards.
  • To suggest ways of improving the service standard that accommodates a rapidly growing customer volume.


This report does not cover the entire banking operation of National Bank Limited. As I worked at the foreign exchange branch of National Bank, so my main concern was the Customer Service Recovery Strategy of National Bank Limited.

This study attempts to relate the customer satisfaction of National Bank Limited (Foreign Exchange Branch). The study is mainly done on perception of the customer of the National Bank Limited (Foreign Exchange Branch). Most of the primary information has been collected through the tabulation work and a questionnaire survey. I was tried to be cautious to relate the experience with that of other sales and service center of National Bank Limited through observation. This study briefly highlights the various customer services of National Bank Limited (Foreign Exchange Branch).


Mainly I have collected data from two sources.

These two sources are as following.

●Primary source

●Secondary source

The primary sources of my information are as below-

  • Direct observation
  • Expert opinion
  • Questioning the concerned persons.

The secondary sources of my information are as below-

                 1.    Annual report of NBL.

                 2.    Desk report of the related department

                 3.    Other manual information

     4.    Different reference books of the library

     5.    Some of my course elements as related to this report.

The following methodology will be followed for the study:

Both primary and secondary data sources will be used to generate this report. Primary data sources are scheduled survey, informal discussion with professionals and satisfied as well as dissatisfied customers and observation while working in different desks. The secondary data sources are annual reports, manuals, and brochures of National Bank Limited and different publications of Bangladesh Bank.

 Data sources:

Data has been collected from the existing National Bank Limited customers and the customer service advisors through survey. Information was also collected from the different publication, and books. For collecting books and periodicals I have used the following library:

NBL Library

BIBM Library

Bangladesh Bank Library

Annual Report of National Bank Limited

 Study instrument

This study is based on both primary and secondary information. To know the customer query patterns, tabulation sheet work was done for 15 days. And to know the customers’ perception about the current services provided by National Bank Limited (Foreign Exchange Branch) and its quality, questionnaire has been constructed and a survey has been conducted. On the basis of the responses, the procedure of analysis was selected.

Data Analysis was done mostly with the help of Microsoft Excel XP through table and statistical data comparison tools like Average, Standard Deviation, Hypothesized Mean, Z test and multiple regressions with T-test and F-test.


  • Lack of comprehension of the respondents was the major problem that created much confusion regarding verification of conceptual question.
  • Limitations of time were one of the most important factors that shortened the present study. Due to time limitation many aspects could not discussed in the present study. Due to time constraints, the sample size had to be restricted to 100 only.
  • Confidentiality of data was another important barrier that was faced during the conduct of the study. Every organization has their own secrecy that in not revealed to others. While collection data on National Bank Limited (Foreign Exchange Branch), personnel did not disclose enough information for the sake of confidentiality of the organization.
  • Rush hours and business was another reason that acts as an obstacle while gathering data.
  • The findings of the survey are based on customers’ response in National Bank Limited (Foreign Exchange Branch) services located in DhakaCity only. The results may not reflect the same for other branches of National Bank Limited (Foreign Exchange Branch) outside Dhaka.

An overview of The Banking System in Bangladesh


The banking system at independence consisted of two branch offices of the former State Bank of Pakistan and seventeen large commercial banks, two of which were controlled by Bangladeshi interests and three by foreigners other than West Pakistanis. There were fourteen smaller commercial banks. Virtually all banking services were concentrated in urban areas. The newly independent government immediately designated the Dhaka branch of the State Bank of Pakistan as the central bank and renamed it the Bangladesh Bank. The bank was responsible for regulating currency, controlling credit and monetary policy, and administering exchange control and the official foreign exchange reserves. The Bangladesh government initially nationalized the entire domestic banking system and proceeded to reorganize and rename the various banks. Foreign-owned banks were permitted to continue doing business in Bangladesh. The insurance business was also nationalized and became a source of potential investment funds. Cooperative credit systems and postal savings offices handled service to small individual and rural accounts. The new banking system succeeded in establishing reasonably efficient procedures for managing credit and foreign exchange. The primary function of the credit system throughout the 1970s was to finance trade and the public sector, which together absorbed 75 percent of total advances.

The government’s encouragement during the late 1970s and early 1980s of agricultural development and private industry brought changes in lending strategies. Managed by the Bangladesh Krishi Bank, a specialized agricultural banking institution, lending to farmers and fishermen dramatically expanded. The number of rural bank branches doubled between 1977 and 1985, to more than 3,330. Denationalization and private industrial growth led the Bangladesh Bank and the World Bank to focus their lending on the emerging private manufacturing sector. Scheduled bank advances to private agriculture, as a percentage of sectoral GDP, rose from 2 percent in FY 1979 to 11 percent in FY 1987, while advances to private manufacturing rose from 13 percent to 53 percent.

The transformation of finance priorities has brought with it problems in administration. No sound project-appraisal system was in place to identify viable borrowers and projects. Lending institutions did not have adequate autonomy to choose borrowers and projects and were often instructed by the political authorities. In addition, the incentive system for the banks stressed disbursements rather than recoveries, and the accounting and debt collection systems were inadequate to deal with the problems of loan recovery. It became more common for borrowers to default on loans than to repay them; the lending system was simply disbursing grant assistance to private individuals who qualified for loans more for political than for economic reasons. The rate of recovery on agricultural loans was only 27 percent in FY 1986, and the rate on industrial loans was even worse. As a result of this poor showing, major donors applied pressure to induce the government and banks to take firmer action to strengthen internal bank management and credit discipline. As a consequence, recovery rates began to improve in 1987. The National Commission on Money, Credit, and Banking recommended broad structural changes in Bangladesh’s system of financial intermediation early in 1987, many of which were built into a three-year compensatory financing facility signed by Bangladesh with the IMF in February 1987.

One major exception to the management problems of Bangladeshi banks was the Grameen Bank, begun as a government project in 1976 and established in 1983 as an independent bank. In the late 1980s, the bank continued to provide financial resources to the poor on reasonable terms and to generate productive self-employment without external assistance. Its customers were landless persons who took small loans for all types of economic activities, including housing. About 70 percent of the borrowers were women, who were otherwise not much represented in institutional finance. Collective rural enterprises also could borrow from the Grameen Bank for investments in tube wells, rice and oil mills, and power looms and for leasing land for joint cultivation. The average loan by the Grameen Bank in the mid-1980s was around Tk2,000 (US$65), and the maximum was just Tk18,000 (for construction of a tin-roof house). Repayment terms were 4 percent for rural housing and 8.5 percent for normal lending operations.

The Grameen Bank extended collateral-free loans to 200,000 landless people in its first 10 years. Most of its customers had never dealt with formal lending institutions before. The most remarkable accomplishment was the phenomenal recovery rate; amid the prevailing pattern of bad debts throughout the Bangladeshi banking system, only 4 percent of Grameen Bank loans were overdue. The bank had from the outset applied a specialized system of intensive credit supervision that set it apart from others. Its success, though still on a rather small scale, provided hope that it could continue to grow and that it could be replicated or adapted to other development-related priorities. The Grameen Bank was expanding rapidly, planning to have 500 branches throughout the country by the late 1980s.

Beginning in late 1985, the government pursued a tight monetary policy aimed at limiting the growth of domestic private credit and government borrowing from the banking system. The policy was largely successful in reducing the growth of the money supply and total domestic credit. Net credit to the government actually declined in FY 1986. The problem of credit recovery remained a threat to monetary stability, responsible for serious resource misallocation and harsh inequities. Although the government had begun effective measures to improve financial discipline, the draconian contraction of credit availability contained the risk of inadvertently discouraging new economic activity.

Foreign exchange reserves at the end of FY 1986 were US$476 million, equivalent to slightly more than 2 months worth of imports. This represented a 20-percent increase of reserves over the previous year, largely the result of higher remittances by Bangladeshi workers abroad. The country also reduced imports by about 10 percent to US$2.4 billion. Because of Bangladesh’s status as a least developed country receiving concessional loans, private creditors accounted for only about 6 percent of outstanding public debt. The external public debt was US$6.4 billion, and annual debt service payments were US$467 million at the end of FY 1986.

Mission Statement: To be the premier financial institution in the country providing high quality products and services backed by latest technology and a team of highly motivated personnel to deliver excellent service in Banking.

Motto: The Bank will be a confluence of the following three interests:

    Of the Bank           : Profit Maximization and Sustained Growth.

   Of the Customer     : Maximum Benefit and Satisfaction.

   Of the Society         : Maximization of Welfare.


  • Customer focus
  • Integrity
  • Team Work
  • Respect for individual
  • Quality
  • Responsible citizenship

Objectives of National Bank Limited :

  • Be one of the best banks in Bangladesh.
  • Achieve excellence in customer service next to none and superior to all competitors.
  • Cater to all differentiated segments of Retail and Wholesale Customers.
  • Be a high quality distributor of product and services.
  • Use state-of the art technology in all spheres of banking.


Overseas Operations:

National Bank Limited
International Division
18 Dilkusha C/A

Tel: 88-02-955-7045, 955-1200
Telex: 642791 NBL HO BJ, 642410 NBL HO BJ
Fax: 88-02-956-3953

Divisional Incharge : Mr. Nazmul Hossain, Senior vice President


Overseas:Mr. Shamshul Huda KhanSenior Vice President
Correspondent Bkg:Mr. Iftekhar H.ChowdhuryVice President
Dealing Room:Mr. Abdus Sobhan KhanVice President
Reconciliation:Mr. Yeakub Ali KhandakarVice President




CurrencyCountryBankCityAccount NumberSWIFT
AUDAustraliaNational Australia Bank Ltd.Melbourn1803072656500NATAAU33033
CHFSwitzerlandUBS AGZurich0230-87574.05MUBSWCHZH80A
EUROGermanyCommerzbank A.GFrankfurt400/8715062 01COBADEFF
GBPU.KLloyds TSB Bank PlcLondon01005511LOYDGB2L
HSBC Bank UK PlcLondon39273437MIDLGB22
JPYJapanThe Bank of Tokyo-Mitsubishi LtdTokyo653-0431079BOTKJPJT
USDU.S.ABank of America NANew York6550-7-89556 //CP 0959BOFAUS3N
JP Morgan Chase BankNew York001-1-041845 Chips UID CH
223691 //CP 0002 // FW021000021
HSBC Bank USANew York000124630 //CP 0108, FW021001088MRMDUS33
Standard Chartered BankNew York3582-074947-001 //CP 0256, FW026002561SCBLUS33
American Express BankNew York00703496 //CP 0159AEIBUS33
Mashreq Bank PscNew York70119153 (ABA Routing ABA 026011743)MSHQUS33


CountryBankCityAccount Number
BHUTANBank of BhutanPhuentshollingACU/34-002
INDIAAmerican Express Bank Ltd
State Bank of India
Sonali Bank
Arab Bangladesh Bank Ltd
NEPALNepal Arab Bank LtdKathmandu0109214050001
MAYANMARMayanmar Foreign trade BankYangoon92907
PAKISTANRupali Bank Ltd.
NR 010-7
SRILANKASaylan Bank Ltd.
Standard Chartered Bank

List of branches authorized by Bangladesh Bank (Central Bank)

to deal in Foreign Exchange and International trade :

Agrabad branch
Bangshal branch
Barishal branch
Bogra branch
Babubazar branch
Chaktai branch
Dilkusha branch
Elephant Road branch
Foreign Exchange branch
Imamganj branch
Islampur Road branch
Jessore branch
Jubilee Road branch
Joypurhat branch
Khulna branch
Khatunganj branch
Kawranbazar branch
Mohakhali branch
Motijheel branch
Malibagh branch
Naogaon branch
Northbrook Hall Road
Narayanganj branch
Pabna branch
Rajshahi branch\
Rangpur branch
Sylhet branch
Satkhira branch
Sk. Mujib Road branch

Country wise list of Banks and Exchange Cos. having Drawing Arrangement with National Bank Ltd.

  • Bahrain
  • Kuwait
  • Malaysia
  • Oman
  • Qatar
  • Saudi Arabia
  • Singapore
  • Switzerland
  • U A E

Departments of National Bank:

If the jobs are not organized considering their interrelationship and are not allocated in a particular department it would be very difficult to control the system effectively. If the departments are not fitted for the particular works there would be haphazard situation and the performance of a particular department would not be measured. National Bank Limited has does this work very well. Different departments of NBL are as follows:

  • Human Resources Division
  • Personal banking Division
  • Treasury Division
  • Operations Division
  • Computer and Information Technology Division
  • Credit Division
  • Finance & Accounts Division
  • Financial Institution Division
  • Audit & Risk Management Division

National Bank Limited

Corporate History and its Operation

Historical Background

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 new branches by the year 2000-2001.

The emergence of National Bank Ltd. 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 functioning on March 23, 1983. The 2nd Branch was opened on 11th May 1983 at Khatungonj, Chittagong. Today we have total 76 Branches all over Bangladesh.

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.

In the year 2000, the Bank managed to procure foreign remittance business to the tune of US$88.44 million dollar equivalent to Tk.4,662.10 million compared to Tk.3,986.20 million in the previous year indicating a growth of 16.96%

Considering the need for remittance by the expatriates Bangladeshis residing abroad the Bank during the year established drawing arrangement with the Pacific Bank Berhad, Malaysia (now May Bank), Security Exchange Company Limited, State of Kuwait and Dalil Exchange, State of Bahrain.

Our Bank invested 25% equity in Gulf Overseas Exchange Company LLC, a joint venture Exchange Company in Oman, operating since November, 1985 under the management of our Bank. The Bank received Riyal Omani 12,450 equivalent to Tk.1.74 million as dividend for the year 2000.

A Representative Office was established in Yangon, Myanmar in October, 1996 by our Bank and obtained permission from the Government of Bangladesh to handle border trade with Myanmar. Opportunities are being explored for further business avenues there.

Now NBL is on line to establish trade and communication with the Prime International banking companies of the world. As a result NBL will be able to build a strong root in international banking horizon. Bank has been drawing arrangement with well conversant money transfer service agency “Western Union”. It has a full time arrangement for speedy transfer of money all over the world.

Banking is not only a profit-oriented commercial institution but it has a public base and social commitment. Admitting this true NBL is going on with its diversified banking activities. NBL introduced Monthly Savings Scheme, Special Deposit Scheme, Consumer’s Credit Scheme and Savings Insurance Scheme etc. to combine the people of lower and middle-income group.

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.

 Banking Service

National Bank Limited (Foreign Exchange Branch) is providing two types of services.

1)      Business or Corporate Financial Services

2)      Retail or Consumer Financial Services

Consumer Credit Scheme

Buying home appliances? Get them through our Consumer Credit Scheme.

National Bank’s Consumer Credit Scheme gives you a great opportunity to buy household and office items on easy installments. This scheme gives you the advantage of part payment to cope with the high price tags of many necessary home and office appliances.

Television, Refrigerator, VCR, Personal Computer, Photo-Copier, Washing Machine, Furniture, Microwave Oven, Car, and a number of other expensive items are now within your buying range. With this scheme NBL makes better living possible for people living on fixed income. Customers can buy those home and office equipment’s without over taxing their budget.

 Special Deposit Scheme

Add to your monthly income, add to your solvency.

For most of the people on fixed income the opportunity to supplement their monthly earning is a golden one. And NBL Special Deposit Scheme gives a customer just that.

Under this scheme, customers can deposit, money for a term of 5 years. The deposited money is fully refundable at the expiry of the term. At the same time, during the term period they can enjoy a monthly profit corresponding to their deposited amount. As for instance, under this scheme a deposit of Tk,55,000/- gives a monthly income of Tk.500/-.

Deposited AmountMonthly Benifit
Tk. 55,000/-Tk. 500/-
Tk. 1,10,000/-Tk. 1,000/-
Tk. 1,65,000/-Tk. 1,500/-
Tk. 2,20,000/-Tk. 2,000/-

Monthly Savings Scheme

See your small savings grow with NBL.

This scheme is specially designed for the benefit of the limited income group members. This helps to accrue small monthly savings into a significant sum at the end of the term. So, after the expiry of the term period the depositor will have a sizeable amount to relish on.

A monthly deposit of Tk.500/- or Tk.1000/- for 5 or 10 years period earns in the end Tk.40,100/- or Tk.2,24,500/- respectively.

Monthly InstalmentReturn after
5 years
Return after
10 years
Tk. 500/-Tk. 40,100/-Tk. 1,12,500/-
Tk. 1,000/-Tk. 80,100/-Tk. 2,24,500/-

 Safe, Instant and Universal Money.

Through its Credit Card. National Bank Limited has not only initiated a new scheme but also brought a new life style concept in Bangladesh. Now the dangers and the worries of carrying cash money are memories of the past.

Credit Card comes in both local and international forms, giving the client power to buy all over the World. Now enjoy the conveniences and advantages of Credit Card as you step into the new millennium.

 NBL ATM Service

National Bank Limited has introduced ATM service to its Customers. The card will enable to save our valued customers from any kind of predicament in emergency situation and time consuming formalities. NBL ATM Card will give our distinguished Clients the opportunity to withdraw cash at any time, even in holidays, 24 hours a day, 7 days a week.

NBL ATM card – your access to prompt cash.

Money transfer from anywhere in the World to Bangladesh in minutes.

Joining with the world’s largest money transfer service “Western Union”, NBL has introduced Bangladesh to the faster track of money remittance. Now money transfer between Bangladesh and any other part of the globe is safer and faster than ever before.

This simple transfer system ,being on line eliminates the complex process and makes it easy and convenient for both the sender and the receiver. Through NBL – Western Union Money Transfer Service, your money will reach its destination within a few minutes.

Saving Insurance Scheme

Worried about the future? NBL has just the scheme for you.

This is an uncertain World and the threatening silhouettes of future catastrophes are always looming around. This NBL scheme gives your family protection against the insecurities of the world. This scheme is the first of its kind in Bangladesh. It combines the benefits of regular savings and insurance scheme, so, you get the usual rate of interest on the deposited amount while you enjoy the protection of a comprehensive insurance coverage. Under this scheme, the beneficiary(ies) get equal the deposit in case of natural death of the account holder whereas in the event of accidental death of the account holder the beneficiary(ies) will receive twice the deposit. As for example, if a customer picks up Easy Class (Tk.50,000/-) he/she will get Tk.50,000/- for natural death and Tk.1,00,000/- for accidental death apart from his/her deposited amount and interest.

ClassDepositNormal Death Benefit
(Including Own Deposit)
Accidental Death Benefit
(Including Own Deposit)

Business or Corporate Banking of NBL

It is very true that major contribution to the bank’s equity has been from business banking sector. It provides several types of services under business banking (Figure 2.1). As figure 2.1 shows, NBL offers corporate banking facilities to both local corporate and multinationals. Besides, it also provides commercial, Industrial, Quasi Government or Correspondence and treasury banking facilities.

Corporate Banking

NBL is recognized as the leading financial institution in corporate finance services in Bangladesh. A professional management team caters to the needs of its clients and provides them with a wide range of financial services some of which are project financing and investment constancy, syndicated debt and equity, bond and guaranties, local and international treasury products.

  Institutional Banking

This service of NBL is designed for different fund based organizations like donor agencies, NGOs, voluntary organizations, foreign missions, airlines, shipping lines and their personnel with the facilities like convertible and non-convertible current accounts, convertible Taka accounts, which are freely convertible to major international currencies, local and foreign currency remittances through a large network of branches and correspondence.

  Commercial Banking

NBL offers different commercial banking facilities to all commercial concerns specially those with particular involvement with import and export finance. It provides the finance facilities like trade finance facilities including counseling, confirming export L/Cs and issue of import L/Cs backed by its international branch and correspondent network. It also provides bonds and guarantees, investment advice, leasing facilities, project finance opportunities.

Quasi Government Banking

The Quasi Government Service of NBL helps the government by providing different financial service like efficient and knowledgeable management of trade business (import and export), skills in barter, swaps and counter trade deals. In addition, the opportunity of debenture finance for new projects, possibilities of hard currency loans and lease deals, the opportunity of syndicated hard currency, financing of loans and import L/C, highly efficient account management and remittance handling within the country or aboard.

 Treasury Banking

The treasury of NBL is one of the leading treasuries that offers foreign exchange requirements, provides market commentaries, economic forecasts and advisory to its major corporate clients. To keep its customers’ up to date with what is happening in the money markets, NBL has “Weekly Treasury Updates”.

 Retail Banking or Consumer Banking Services:

The service of PFS and Credit Card Services are known as Retail Banking or Consumer Banking. Retail banking deals with the providing the bank services to individuals on a one-to-one basis.

 Personal Banking Services of NBL

NBL started its personal banking services in March 1982. Besides usual deposit services, consumer finance services of NBL have been most popular. This section of report discussed all these personal banking services; consumer finance services of NBL have been most popular. This section of report discusses all these personal banking services provided by NBL.

a) Deposit Services

NBL has the deposit services for its customers. NBL’s deposit services are shone in the figure below:

Source: NBL’s Official Document

b) Locker Facilities

NBL’s locker service allows the customers to keep their valuable in a safe and secure place and access the same at convenient times. These strong and heat resistant steel lockers lodged in reinforced concrete steel vault, round the clock security guards, sophisticated anti-burglary alarm systems provide maximum protection to the valuables of customers.

c) Government Bonds

Like other banks, NBL provides its customers with bond services. Three types of government bonds are available with the bank. These bonds are sold and related accounts are maintained according to the already established procedures.

d) Consumer Finance

NBL first introduced consumer finance in Bangladesh and until today. They are the market leaders. It has varieties in financing its retail customers with innovative products. These include different types of credit and saving schemes shown below in the Figure.

Meaning of Foreign Exchange:

Money as earlier state is a common denominator in which the relative values of goods and services can be expressed. When a person makes a payment to another person living in the same country _ he uses any of the different forms of money currency in the country. Foreign Exchange refers to the process or mechanism by which the currency of one country is converted into the currency of another country. Foreign Exchange is the means and methods by which rights to wealth in a country’s currency are converted into rights to wealth in another countries currency. In banks when we talk of foreign exchange. We refer to the general mechanism by which a bank converts currency of one country into that of another. Foreign trade gives rise to foreign exchange. Foreign trade is transacted either in the currency of the exporters country or that of the importers country. Or that of a third country acceptable to both the exporter and the importer. Dr. Paul Eingiz defines Foreign Exchange as the system or process of converting one national currency into another and of transferring the ownership of money from one country to another. In the words of Mr. H. “Foreign Exchange is that section of Economic Science which deals with the means and methods by which rights to wealth in one country s currency are converted into rights to wealth in terms of another country’s currency. It involves the investigation s of the method by which the currency of one country is exchanged for that of another, the causes which render such exchange, may take, and the ratios or equivalent values at which such exchange are effected. The expressions “Foreign Exchange” are also popularly used to denote a foreign currency. A bank is said to buy or sell foreign exchange, which deals in claims on foreign currency or the actual legal tender money of other countries. But this is not the only meaning of the expressions. In the study of foreign exchange as a branch of foreign trade, it  has been given a much wider interpretation. It covers all method by which the claims expressed in terms of one currency are converted into another currency and the rate at which exchange take place. The term “currency” as earlier stated includes not only such notes and coins as are legal tenders, but also bank balances and deposits in foreign currency and all instruments  credit instruments which are capable of being used as currency. Such as bill of exchange, cheques, drafts, airmail transfers, telegraphic ( cable) transfer and all other instruments, which convey to holder a right to wealth. Thus foreign exchange means foreign currency and includes- All deposits, I credits and balances payable in any foreign currency and any drafts, traveler cheques, letters of credit and bills of exchange, expressed or drawn in local currency but payable in any foreign currency; and Any instruments payable, at the option of the drawee or holder thereof or any other party thereto, either in local currency or in foreign currency or partly in one and partly in the other. Foreign exchange is concerned with the settlement of international indebtedness, the methods of effecting the settlements and the instruments used in this connection, and the variation in the rates of exchange at which settlements of international indebtedness is made. Foreign Exchange is concerned with the settlement of international indebtedness. the methods of effecting the settlements and the instruments used in this connection, and the variation in the rates of exchange at which settlement of international indebt ness is made. The Central Bank of country, being the controller of currency and credit and head of the money market is vested with the responsibly to ensure internal as well as external stability of its currency. The internal stability is controlled by its monetary and credit policy while the external stability by bringing and maintaining equilibrium in country’s balance of payment with rest of the world, which includes control of gold, dollar and sterling reserves of the country. In terms of Foreign Exchange Regulation Act. 1947, as adapted in Bangladesh, Foreign Exchange means foreign currency and includes all deposits, credits and balances payable and foreign currency instruments, such as, Drafts, Travelers, Cheques, Bills of Exchange, Hundi and Promissory Notes payable in any foreign country.

Fundamentals of Foreign Exchange Branch:

There are 3 fundamental aspects of the general mechanism of Foreign Exchange Branch:

A. Every country has its own currency – legal tender/ distinctive unit of account.

B. Banks ‘by book- keeping entry carried out into two centers concerned effect the conversion of one currency into another.

C. These exchange are effected by means of credit instruments via Draft, Mail Transfer, and Telegraphic Transfer etc.

Each country has its’ own currency distinct from the others and useful possession of any such distinctive unit of account can be had only within that country in which it is in circulation; that is so, because it discharges the limitations of money in the country of which it is legal tender. Foreign currency for us is like any other commodity. This” commodity character” of foreign currency is very significant and should be borne in mind at all times. The only peculiarity which distinguishes foreign currency from other commodities is that in the country where it is legal tender. It is money.

Administration of Foreign Exchange:

The statute for administration 0 foreign currency in Bangladesh is the Foreign Exchange Regulation Act, 1947 as adapted in Bangladesh. Under the Act, 1947 as adapted in Bangladesh. Under the Act, the responsibility and authority of administration of foreign exchange invested by the government with the Bangladesh Bank. Central Bank the country. Any who deals with foreign exchange has to abide by the directions given by Bangladesh Bank in that behalf. Foreign exchange is a highly specialized business and is, therefore, concentrated in selected branches of the schedule banks situated in metropolitan cities and other places where either import or export predominates or inflow of foreign remittances is expected to be high. Such branches can, however, function within the guidelines prescribed by head office of the Banks from time to time. A senior executive of the bank having deep knowledge of the rules and regulations of foreign exchange business and particulars and banking in the international economic and political fields heads Foreign Exchange Department, which is also called International Division.

Highlights on the Overall activities of the Bank for the year 2004 and 2005

(Figure in Million)
SL#ParticularsCurrent Year
Previous Year
1Paid-up Capital430.27430.27
2Total Capital1,908.921,824.60
3Capital surplus / Deficit364.84485.58
4Total Assets36,253.7633,777.06
5Total Deposits27,762.1226,276.26
6Total Loans & Advances22,257.1521,677.96
7Total Contingent Liabilities and Commitments11,675.8111,704.92
8Loan Deposit Ratio80.17%82.50%
9Ratio of classified Loan to total Loans & Advances25.13%28.84%
10Profit after tax& provision88.12146.19
11Amount of classified loan during the current year.5,592.516,252.29
12Provision kept against classified Loans3,161.873,210.75
13Provision surplus /(deficit)46.37295.90
14Cost of fund6.06%5.83%
15Interest earning Assets33,378.1130,544.56
16Interest non-earning Assets2,875.653,232.50
17Return on Investment(ROI)6.79%5.92%
18Return on Assets (ROA)2.61%2.58%
19Income from Investment274.52227.23
20Earning per Share.(Taka)20.4333.90
21Net income per Share (Taka)20.4333.90
22Price Earning Ratio (Times)11.097.04



Services are deeds, processes and performances (Zeithaml and Bitner, 2003). Broadly, services include all economic activities whose output is not a physical product or construction is generally consumed at the time it is produced and provides added value in forms (convenience, amusement, timeliness, comfort or health) that are essentially intangible concerns of its first purchaser (Quinn, Baruch and Paquette, 1987). The Service sector consists of different dimensions and among them we have picked ‘health care’ which deals with different services such as, hospital services, diagnosis services, physicians’ consultancies and some other emerging fields. In this study, we are specially focusing on ‘diagnosis services in Bangladesh’ as it is one of the parts of integrated health care system. ‘The health care delivery system in Bangladesh faced three major challenges–improving qualities, increasing access and reducing costs. While all three elements are important, there is growing evidence that the perceived quality of health care services has a relatively greater influence on client behaviors (satisfaction, referrals, choice, usage etc) compared to access and cost. In this consequence, we have analyzed the service quality dimensions of diagnosis services in Bangladesh to determine the service gap between service perception and service expectation through the application of SERVQUAL model.  However, the study represents service gap between service expectation and perception in the banks to help policy makers shape client centered strategies to enhance diagnosis services in Bangladesh.

The objectives of the study are divided into two principal categories. These are: (a) general objectives and (b) specific objectives. The general objectives attempt to evaluate the medical diagnosis services in Bangladesh through SERVQUAL Model­­­. On the other hand, the specific objectives of the study concentrate to detect the gap between consumers’ expectations and perceptions toward the banks focusing on several service quality dimensions like reliability, responsiveness, assurance, empathy and tangibility. The study initially also focuses the consumers’ expectations and perceptions regarding the service reliability, service responsiveness, service assurance and service empathy and service tangibility of medical banks in Bangladesh.

The title of this paper clearly specifies the nature of the research procedures i.e. exclusively focuses on quantitative research. To conduct the study, primary data were collected through mall intercept personal interview that suggests an on spot interview from respondents through structured questionnaire. (Malhotra, 2005)

In this study, to measure the distance of gap between service perception and service expectation on different service dimensions, the level of scale was interval and the technique was five point Likert type scale anchored at the numeral 1 with the verbal statement ‘strongly disagree’ and at the numeral 5 with the verbal statement ‘strongly agree’. Here the applied format has been recommended for healthcare surveys (Elbeck, 1987; Steiber, 1989).

Structured questionnaire was used in tapping the information from 30 participants which was deigned in the light of the objectives of the study according to the pattern of the SERVQUAL model. The model has been applied entirely after a reliability and validity testing through depth interview and focus group discussion with experts.  The questionnaire was pre tested several times to ensure that the wording, format, length, and sequencing of questions were appropriate. During each successive pretest, feedback was obtained from approximately 10 diagnosis service users to help refine the quality of the measures.

To conduct data analysis, at first, mean scores of service perception and expectation of all five dimensions of service quality have been calculated and then finally the gap scores have been determined. Then the hypotheses regarding service quality dimensions have been tested by paired comparison t test through SPSS program.

Simultaneously, to make this paper more informative different published text books, related journals, reports, seminar papers, magazines and research works have been consulted. Literatures were generally collected from said sources and the Internet. As a result, a through review of literatures enabled us to make a consistent presentation of the theme of study.

Thus the paper is fine tuned into the following several rhythms: The first one after the introduction focuses on the model along with its applications, the second one depicts the development of the hypothesis for the study to make it more reliable and valid, the third one provides the findings both general and empirical, the fourth one provides evidence for the result of the hypothesis, the fifth one stands for recommendations along with conclusions, the sixth one illustrates the list of the articles, books and others documents reviewed to complete this study successfully and finally the last not the least one presents appendix to make this paper more attractive to the readers.

SERVQUAL Model: An Overview

The SERVQUAL model was originally developed by A. Parasuraman, Valarie A. Zeithaml, and Leonard L. Berry in 1988 and later refined in 1991 as a multidimensional scale to capture customer perceptions and expectations of service quality which involves the calculation of the differences between expectations and perceptions on a number of pre-specified criteria, is currently the most popular measure (Brown, Churchill and Peter, 1993) of service quality. The model has undergone numerous improvements and revisions since published. The scale currently contains 21 pairs of items (Exhibit 1) considering consumer perception and expectation factors that are distributed throughout the five service quality dimensions. (Zeithaml and Bitner, 2000).

SERVQUAL highlights the major quality requirements of delivered service in such five dimensions that the consumers consider in their as­sessments of service quality: (a) reliability– Ability to perform the promised service dependably and accurately (b) responsiveness– Willingness to help customers and provide prompt service (c) assurance– Employees’ knowledge and courtesy and their ability to inspire trust and confidence (d) empathy– Caring, individualized attention given to customers and (e) tangibles– Appearance of physical facilities, equipment, personnel, and written materially (Zeithamal 1990 and Berman and Evans, 2002).

Subsequently, the model claims that the customer evaluates the quality of a service experience as the outcome of the difference (gap) between expected and perceived service. This model is known as Service Quality Model (Parasuraman, Zeithaml, and Berry, 1885, 1990). There are five gaps shown in the model: (a) Gap 1– the gap between customer expectation and management perception (b) Gap 2– the gap between management perception and service quality specification (c) Gap 3– the gap between service quality specification and service delivery (d) Gap 4– the gap between service delivery and external communication and (e) Gap 5– the gap between perceived service
and expected service.

The Customer Gap

Customer gap is the external focus of the gap model; it means the gap between customers’ expectations and perceptions. Expectations are the reference point’s customers have coming in to a service experience; perceptions reflect the service as actually received.

Customer expectations and customer perceptions-that play a major role in service marketing. Customer perceptions are subjective assessment of actual service experiences. Customer expectations are the standards or reference points for performance against which experiences are compared and are often formulated in terms of what a customer believes should or will happen.

Customer satisfaction and customer focus are so critical to competitiveness of firms; any company interested in delivering quality service must begin with a clear understanding of its customers.

The Providers Gap

The providers’ gaps are the underlying causes behind the gap:

Gap-1 Not knowing what customers expect.

Gap-2 Not selecting the right service standards and designs.

Gap-3 Not delivering to service standards.

Gap-4 Not matching performance to promises.

A primary cause in many firms for not meeting customer’s expectations is that the firm lacks accurate understanding of exactly what those expectations are. Even a firm does clearly understand its customer’s expectations; there still may be problems if that understanding is not translated into customer –driven service designs and standards. There must be systems, processes, and people to ensure that service delivery actually matches the designs and standard in place. Finally, with everything in place to effectively meet or exceed customer expectations, the firm must ensure that what is promised to customers matches what is delivered.

The Recovery Paradox

The service recovery paradox has two components, one part says service recovery can bring good things to the company and the other part says this recovery action will not fruitful. That means the positive consequences of service recovery action bring the idea that this action brings customer satisfaction and loyalty and generates positive Word Of Mouth (WOM). That means when the recovery action takes place, customers become satisfied and appreciate this course of actions and feel valued. The result is that they become loyal to the company. They will share this experience with other people and this will bring more customers. With the first time failure the customers become dissatisfied and with the recovery action they become more satisfied and more likely to repurchase the service. It is also thought a well designed, well documented service recovery strategy provides information that can be used to improve service as a part of continuous improvement effort. The result is customer satisfaction; making customers more satisfied with recovery action. This concept encourages service provider not to provide full volume service and make customer somewhat disappointed and then taking recovery action to make them more satisfied and gain even more loyalty. This idea has become known as the recovery paradox.

Source: Parasuraman, A., Zeithaml, Valarie A. and Leonard L. Berry. 1985. A Conceptual Model of Service Quality and Its Implications for Future Research, Journal of Marketing, Vol. 49 (Fall 1985), pp. 41-50.

The Gap 5 is caused by the other four gaps. These gaps can be major problems in attempting to deliver a service which consumer would perceive as being of high quality. However, quality is an indescribable and indistinguishable construct. Often mistaken for imprecise adjectives like “goodness, or luxury, or weight” (Crosby, 1979), quality and its requirements are not easily articulated by consumers (Takeuchi and Quelch 1983).  It is generally assessed on six dimensions: (a) reliability, (b) serviceability (c) prestige (d) durability (e) functionality and (f) ease of use (Brucks and Zeithaml, 1991).

SERVQUAL has served as a basis for measuring the quality of the service offered by an appliance repair and maintenance firm, several retail banks, a long distance telephone provider, a securities broker, credit cards companies (Zeithaml and Bitner, 1998); a hospital (Babakus and Mangold 1989); a CPA firm (Bojanic 1991); physicians (Brown and Schwartz 1989); a dental school client clinic, business school placement center, tire store, and acute care hospital (Carman 1990); public recreation programs (Cromton and Makay 1989); and real estate brokers (Johnson, Dotson and Dunlop, 1988) etc. Consumers are constantly in search of information to measure service quality in their mind.

Results of the study:

Service perception and service expectation analysis. The study shows mean perception score of five service dimensions and mean expectation score of service dimensions.

Importance performance matrix. Importance performance matrix is a useful form of analysis in marketing research. To do analysis, we have combined information regarding customer perception and importance ratings.

Attribute importance is represented on the vertical axis from high (top) to low (bottom). Performance is shown on the horizontal axis from low (left) to high (right). The horizontal axis is the gap between service perception and service expectation.

The top left quadrant indicates the area of highest leverage for service quality improvements– where importance is high and performance is low and it includes reliability. In the adjacent upper right quadrant are attributes to be maintained one that a company performs well and that are very important to customers. The lower left quadrant contains attributes that are relatively less important but needs to be maintained and they are assurance and empathy. The lower right quadrant contains attributes that needs to be de-emphasized as it has no more importance to buyers and it includes tangibles.

Some suggestions in the light of findings:

The general state of apathy and unconcern regarding client satisfaction that generally prevails in most banks in Bangladesh suggests the need to consider several additional factors at the policy level.

First and foremost we recognize that the front-line employees and the support staffs are among the most vital to the success of any service organization. In fact, research suggests that satisfied employees make for satisfied customers. Another view is that employee satisfaction and customer satisfactions feed off each other­- satisfied employee reinforce customer satisfactions, which in turn reinforced employee satisfaction. Evidently, employee satisfaction is vital and demands greater attention if client satisfaction is to be engendered and reinforced. For example, when the staffs overworked and inadequately compensated, discipline problems are not unexpected. In this regard, Heskett, Sasser and Schelisinger (1997) suggest that organizations must be able to generate internal harmony and satisfaction among the employees through establishing a ‘cycle of capability’, otherwise the employees may not be predisposed to deliver that which is required of them. This means that significant effort must be devoted to hiring the rights personnel, developing them, providing them with needed support, compensating them, and devising ways of retaining the best among them. This calls for training employees in both technical and interactive skills, empowering them, promoting teamwork, developing internal processes and supporting technology and treating employees like ‘internal’ customers to be valued for the job they perform.

Second We feel that some forms of client education are important- such education should contribute to their satisfaction. At the service encounter level, or even before, clients have a role to play in the service delivery process. If this role is not played they are likely to receive sub-par services.

Third We feel that a customer care satisfaction index should be constructed to periodically compare the services of different banks. Such an index could be weighted by factors such as cost, access and technical quality in additional to the client centered service factors that the paper identifies as important.

Finally We believe that a strong managerial orientation should be introduced in the banks to deliver quality services and client satisfaction. Unfortunately, our experiences suggests that modern managerial practiced are yet to be introduced in most banks.


From the practical implementation of customer dealing procedure during the whole period of my practical orientation in National Bank Limited I have reached a firm and concrete conclusion in a very confident way. I believe that my realization will be in harmony with most of the banking scholar. Performance of National Bank Limited during the last five years has proved that with strong desire and will power one achieve whatever target he may have. Almost all the leading banks in our country have various extra facilities in offer for the customers in comparison with other banks but National Bank Limited has succeeded in achieving more customer than many other competitors. This has been Possible only because of strong customer relation and excellent customer service.

Success in the banking business largely depends on effective lending and less the amount of loan losses. The more the income from Credit operations the more will be the profit of the Bank and here lays the success.

Though there are some drawbacks in implementing Credit facilities in National Bank Limited as per manual, it can be overcome through involvement of more financial expert in the decision making process and utilizing the tools to judge integrity of the customers. Finally it can be argued that though the results achieved so far are not satisfactory, fruitfull customer service failure and recovery strategy is a modern scientific technique for enhancing National Bank Limited’s strength and there lies the opportunities to make it more effective in the future for their own benefit.


  Prospectus of National Bank Limited Limited published

  Annual Report of National Bank Limited Limited (2004 & 2005)

  Several Booklets from National Bank Limited

  Several Newsletters from National Bank Limited

  National Bank Limited Web site 

National Bank Limited

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