Internship report on National credit and commerce bank Ltd [ Part-3 ]

7.1 Import & Letter Of Credit

The import and export trade of our country is regulated by Chief Controller of Import and Export (CCI&E). No person who has been granted registration by the CCI&E shall indent, import or export anything into or out of Bangladesh except in cases of exemption issued by the government.

Business person in our country can import product from another country, for this transaction they transfer Letter of Credit. In this part we will discuss about import procedure as general basis because this procedure is accepted worldwide.

Letter of Credit:

Letter of credit is a written undertaking issued a bank (Guaranteeing payment) at the request of buyer (Importer) to the seller (Exporter) to pay at sight or a determined future date, up to a stated sum of money, within a prescribed validity of the instrument (L/C) and against stipulated shipping documents.

7.2 There are different types of L/C

Circular letter of credit: It is issued by a bank at the request of this customer for availing credit facility from beneficiary or draws his traveling expenses from banks in different places. But with the introduction of Travelers Cheques and Credit Card, issuing of circular L/C is now outdated.

Revocable credit:

It is credit, which can be revoked or cancelled at any time without the consent or notice of the beneficiary. Irrevocable credit: This credit cannot be revoked, revised or amended/ changed without the consent of all the parties i.e. the buyer, seller, issuing bank and confirming/ advising bank. Red-clause or packing credits: Which bears an endorsement by opening bank on the credits in “Red-Ink” a clause authorizing the confirming or negotiating bank to pay the beneficiary against his drafts alone coupled with his simple promise to provide the documents in future. “Packing” because the merchandise

Bought in the interior is shipped to the ocean port, assembled and packed for over as shipment. Subsequently, bank can reimburse the amount by negotiating the shipping documents plus interest accrued.

Revolving credit:

An L/C can be revolving credit provided the wording will permit the amounts of drawings to be again available to the beneficiary within the validity period. clause of opening bank to advising bank. The amount paid under this credit become available to you upon your receiving from us advice to this effect. The amounts paid under this credit are again available to you automatically until the total of the payments reaches a fixed amount. L/C opening branch doesn’t need to get permission from HO to open L/C each time if it is in the limit.

Stand by letter of credit: It is a contractual agreement between one bank to another or a bank to its customers to provide agreed amount of funds as per arrangements set in the agreement. Applicable only in case of subsidiaries of a bank abroad when they like to borrow from others in that country since Parents Company is restricted by the law of the land to issue guarantee for its subsidiary company.

7.3 Participants of L/C opening

Importer: A company can import finished goods or purchase raw materials to produce the product.

Exporter/ Beneficiary: Those who supply raw material or finished goods.

Issuing bank: L/C opening bank is called issuing bank or L/C opening bank. Some time issuing bank also does the work of advising.

Advising bank: Advising bank will receive the L/ C and send it to exporter or negotiating bank

Negotiating bank: On behalf of exporter negotiating bank do all the formalities with the issuing bank.

Reimbursement bank: Issuing bank can pay to the negotiating directly or through reimbursement bank. In this bank, issuing bank has an account, which is called “a/c. in this a/c issuing bank deposit required amount for L/ C payment.

Add confirmation: Supplier may want to receive payment from a specified and reputed organization through that bank they will collect their payment.

Syndicate financing: It may be difficult for a small bank to finance for a big amount of L/C. In this, few banks may finance circumstances L/C.

Indenter: An exporter may have an agent in the importing country. Then they do all process and they send “Indent” to the importer. Indent includes all information required by importer as types of product, price, quantity, shipment date, negotiating bank etc.

7.4 Import procedure

  At the request of the buyer, issuing bank opens L/C on behalf of importer.

  Advising bank in the seller’s/ exporter’s country advice L/C to the beneficiary.

  The issuing bank may also request advising bank to confirm the credit.

  The advising bank will advise/ inform the exporter that the L/C has been issued.

  As soon as the seller/ exporter receive L/C and are satisfied with the terms and conditions, they take initiative for shipment of goods.

  After making shipment, the exporter submits documents to negotiating bank for negotiation along with L/C copy.

  Negotiating bank scrutinizes the documents and if satisfied, then they send the documents with forwarding letter to the L/C opening bank.

  After receiving documents, the opening bank checks the documents and if no discrepancy is found, makes payment directly to the negotiating bank or through reimbursement bank.

7.5 Required documents for L/C opening

 Parties Application for Issuance of L/C
Valid IRC(Import registration certificate)
IRC renewal Chalan copy
L/C application from signed by applicant
Proforma invoice/ Indent signed by Application
Trade license validity
TIN and VAT certificate validity
Registration certificate from Broad of investment
L/C authorization form signed by Applicant
Valid membership certificate (CC & I)
Insurance over note
Credit Report( if required)
CIB Inquiry

I.            Understanding
II.            List of other business ownership
III.            Others bank liabilities
  Last 03(Three) years/ Projected audited Financial Statement
  Net worth Business and Individual( Director/ proprietorship)
  Details of Director/ Proprietor/ Name- F/M Name- Address- Age- Destination- Share- net worth)
  Bonded ware house license validity
  Fire license validity
  Fire Insurance policy

7.6 Proposal for L/ C opening

If all required document is clear then issuing branch will prepare the proposal by following way:

                                   Proposal for L/ C opening

Reference No: ________________                                 Date: (proposal preparation date)

Senior Executive Vice President

(Name of the Bank)

Head Office

Dhaka.

Re: –    Proposal for allowing permission to open L/C (Sight)/ days deferred for (FC) e.g. $6,138 Equivalent to Tk. e.g. 3,72,000 at 10%  margin and subsequent LIM/LTR/Term loan facility for Tk. e.g. 3,72,000

 A/c (Name of the company)

At the request of our above-mentioned client we would like to request you as under —— To allow us permission to establish the letter of credit(s) as per the following details:

  1. Among of L/C (FC) e.g.  $6,138 @ Tk. 59.80 (Exchange rate) Eqv. Tk. e.g.3, 72,000margin 25% (sanction by HO).
  2. Sanction of subsequent LIM/LTR/Term loan for Tk. e.g. 3,34,800 for 45 days

Particulars of the clients:

a)      Name of the account:                                                         : Name of the company

b)      Address

c)      Business:

d)     Office:

e)      Factory:

f)      Account no and date of account opening:                      🙁 Info filled by bank)

g)     Date of first Sanction:

h)      Constitution/ Legal status:

i)        Constitution/ legal status                                                    : Private/Public/Others

j)        Date of Incorporation/Establishment  :

k)      Date of commencement of business   :                               :Date of issuance license

l)        TIN no            :                                                                               :(Info filled by bank)

m)    Nature of business      :                                                       :e.g. deep tube well

n)      Net worth of business :                                                       :Info given by party

  • o)      Market/ place of business/ area of operation   :

p)      Relationship history    :                                                       : Relationship with bank

q)      (e.g. company has been maintaining a CD a/c since 2000 and enjoying various credit facilities)

r)      Capital structure (for ltd. Company)

  1. Authorized capital                              : Capital investment in the business
  2. Paid up capital            :                                   : Deposited amount is BB at the

                                                            establishment period of the company

  1. Investment in business                        : Invested amount in the market.
  2. IRC no
  3.  Valid up to                                         :
  4. Type of IRC                                        : Commercial/ Industrial

2.         Name of the proprietor/partners/ directors:

NameFather’s/PermanentPresentAgeShareStatusNet
Mother’s/add withadd(%)worth
Husband’sphone nowith
namePhone no

3. Particulars of the guarantor:

  1. Guarantor’s name
  2. Address
  3. Permanent
  4. Present
  5. Relationship    of the guarantor with the applicant
  6. Guarantors back ground
  7. Net worth of the guarantor
  8. Liabilities with our bank/other banks and status:
Name

Of accountName

Of bankNature

Of  Advance/

FacilitiesAmount of limit/ FacilitiesValidityPresent outstandingClassification status

4. Liability position of the client/ Allied concern with our bank:

Name

of the

branchName

of

accountNature

of

advanceAmount

of limitValidityPresent

outstandingOverdueSecurityFunded       Non-

Funded       Total

Break up liability L/C:

Name of a/c/ allied a/cL/C no, date and AmountDescription of goodsMargin heldShipment validityHO sanction reference

         

 

PAD/ABP:

Name of a/c allied a/cPAD/ ABP no, date of creationAmount of

PAD/ ABPPresent outstandingMaturity dateOver dueItem & related L/C noDate of arrival of goods at the portRelated HO sanction no

 

 

LIM/LTR:

Name of a/c allied a/cLTR/LIM

no, date of creationAmount of LTR/ LIMPresent outstandingMaturity dateOver

dueItem & related L/C noWhether LIM goods are under effective control of the branch

 

5. Liability position of the client/ Allied concern with our bank:

Name of the bankName of the borrowerNature

Of AdvanceAmount of limitValidityPresent outstandingOver

dueClassification status

 7. CIB information:

 8. Global exposure:

Nature of

advanceAmount

of limitOutstandingOverdueClassification

statusFunded    Non-funded    Total

9. Performance of the client/ allied concerns (last 3 years) with our bank:

Import
YearL/C openedDocuments retiredOutstanding
No       AmountNo       Amount
Export
YearExport madeProceeds realizedProceeds yet to be realizedOthers

10.       Earning from the client/allied concerns during last 3 years:

           Year     Interest Commission Others Total

 

  1. Particulars of L/C:
  1. Description of the commodity:  Company name
  2. Quantity:
  3. Unit price:
  4. Total price:
  5. Sales term:
  1. CFR or C&F (Cost & freight): C&F is a contractual trade term indicating that the price quoted includes cost of goods and transit costs. I.e. freight up to the named port of destination.
  1. FOB (Fright on board):  Deliver the goods on board a ship at a port of shipment named in the Sale L/C at his own cost and risk. Seller is also to provide a clean bill of lading under this contract. Buyer’s primary responsibility is to take delivery of the goods after payment of freight, duty and taxes, port dues etc and bring the goods in his own premise at his own cost and responsibility.
  1. CIF (Cost, Insurance and Freight): The cost of the goods, the insurance and the freight to the destination are included in the contract price. Under this trade term, the seller, besides, cost of goods and freight has the added obligation to arrange/ procure insurance against the risk of loss and damage to the goods during the carriage up to the named port of destination.
  2. H.S code no                                                                          :  product validity to import
  3. Country of origin                                                                  : Manufacturing country
  4. Name &address of the beneficiary:
  5. Status report of the beneficiary:
  6. Obtained/ not obtained:
  7. Mode of shipment e.g. truck Port of shipment:
  8. Last date of shipment:
  9. Utilization of the goods:                                                           : Trading/ Own utilization
  10. Marketing arrangements:
  11. Margin proposed by the party:
  12. Margin recommended by the branch:
  13. Branch’s total exposure on the proposed item of import:
  14. Branch’s total exposure on the proposed item of account of the client:
12. Calculation of landed cost:                                                                                 MT

TK C&F value                                                    Tk.

Add 1% Insurance premium  (A)Subtotal   Add 1% port fees on (A)  (B)Assessment value   Tariff value, if any

Duty 5%on (B)   Supplementary duty on (B)  (C)Subtotal   Vat on (C)   AIT on (B)   DSC on (B)   Misc on (C)  (D)Total landed Cost  (E)Total landed cost is % on LC value  (F)a) Landed cost per MT   b) Market price per MT

13. Arrangement for retirement of relative import bill:

      Cash LIMLTR Term loan others

14.       In case of cash retirement of documents:

15.       If post import finance is required:

 

  1. Amount of post import finance                                                       : Tk.
  2. Margin :                                                                                            :Tk.
  3. The post import finance required for:
  4. Value / landed cost                                                                           :Tk.
  5. Duty, VAT and all other incidental charges will be borne by the client/ bank.
  1. Tenor:
  2. Storage of goods( whether pledge/LIM goods can be

Stored in protected and secured under effective

Control.

16. Certification

ü  Whether goods imported are restricted or illegal as per IPO in force

ü  Whether price of the items are favorable or competitive

18. Declaration

a)      Check whether the borrower is the director of the bank or not (if yes, extent               of share holding

b)      Check whether the borrower is director or shareholder of the bank

7.7    Elements of L/C

 

Field 1: Sequence of total- If ½ is written means it may be revocable or irrevocable L/C.

Field 2: Form of documentary credit-Revocable L/C or Irrevocable L/C Field 3: Date of issuing L/C

Field 4: Date and place of expiry- Date of expiry and name of negotiating bank

Field 5: Applicant- Name of importing firm with address and telephone no.

Field 6: Beneficiary- Name of exporting firm with address and telephone no

Field 7: Currency code- In which currency transaction will be occurred.

Field 8: Maximum credit amount- Declared amount shouldn’t be exceeded.

Field 9: Available with be- Name and address of any bank in beneficiary’s country by negotiation

Field 10: Drafts at- Sight (exporter can demand payment after delivering the draft) DP (Payment will be done at a specific date).

Field 11: Drawer- Name of the L/C issuing bank.

Field 12: Partial shipment- Exporter can sent product at a once or part by part.

Field 13: Transshipment- Product will reach to its destination by changing transportation or not.

Field 14: On board/ DISP/Taking charge at/F- Product exporting country.

Field 15: For transportation to- From which check post product will reach to its destination.

Field 16: Latest date of shipment- During the specified time exporter has to finish the shipment

Field 17: Description of product with price and quantity.

Field 18: Charges

Field 19: Period for presentation- Date for submission of all required document.

Field 20: Confirmation instruction

Field 21: Instruction of payment/ Acceptance/ Negotiating bank.

Field 22: Sender to receiver information- Issuing and negotiating bank must follow internal rule.

Field 23: Documents required

Field 24: Additional requirements

All information will be register in the L/C opening register:

DateL/C#Name, add & IRC on of partyForeign currency amount

Equivalent of takaDescription of goodsCountry of originAdvising bank

bank

TenorShipment expiry dateNegotiating expiry dateAmount of marginCommissionPostageTelexSignName of reimbursement­

bank

Reimbursement authority:

 

ü  L/C issuing bank will send all the required documents to reimbursement bank through telex or SWIFT (Society for World Wise Inter Bank). Required documents are:

ü  Name of negotiating bank

ü  Name of beneficiary

ü  A/c no of beneficiary

 Document Checking:

Through negotiating bank exporter will send all required documents to issuing bank. Exporter may send original or copy documents. If issuing bank endorses the copy document then importer can release their product using it. It is very important to check all documents carefully because one small discrepancy may occur a big problem. Required documents are:

a)      Currier receipt

b)     Forwarding letter

c)      Bill of exchange- An instrument is writing containing an unconditional order, addressed by one person or concern to another, duly signed by the marker as drawer of the instrument, directing a certain person or concern i.e. addressee as drawer to pay a certain sum of money only to the order, or to the bearer of the instrument on demand or at a fixed or at a determinable future time.

d)     Bill of leading- A document signed either by the master of the ship or the owner, or their agents acknowledging the receipt of goods for carriage to a stated destination from the specified ports of shipment, the condition under which the goods accepted for carriage with an undertaking to deliver the goods to the consignee in the like order as received.

e)      Insurance copy

f)       Amount

g)      Certificate of origin

h)      Packing list

i)        Invoice

j)        Any type of phytozanitary, insecticides, fumigation certificate

k)      If everything is clear then issuing bank will send money to the required bank mentioned in the forwarding letter.

7.8 Types of post import finance

If L/C issuing bank get original document first they will check the documents. Post import finance can be:

Cash: Party can repay their money in cash.

LIM (Loan against merchandise): LIM may be created at the request of the importer while he is not in a position to take delivery of import bills by making full payments of entire bank dues. In such a case PAD is transferred to LIM a/c and the overdue interest from the negotiation date to the date of transfer to LIM a/c is charged. Margin on the landed cost is ascertained and customs duty, sales tax etc are to be borne by importer. After clearance, consignments are stored in bank’s go down or party’s go down under bank’s effective control. Goods are delivered against proportionate payment and adjusted within the validity. Validity for commercial items is 30-45 days and for industrial item 90 days.

Force LIM: If it so happens that the importer does not proceed to retire import bill in spite of repeated request/ reminders and the imported goods incur demurrage at the port and further will expose more demurrage along with possibility of damage/ pilferage, bank take initiative to create forced loan in the form of LIM and keeps consignment in its go down for adjustment of liability through sale proceed of goods.

LTR (Loan against trust script): Bank has to part with the goods of the bill of lading without receiving the amount due from the customers, it is essential that bank should take a “Trust Receipt” signed by the customer, agreeing to hold goods or their sale proceeds in trust, for the bankers, so long as the entire amount due to the borrower is not paid off. If a customer who has signed such Trust Receipt fails to hand over to the banker, the salt proceeds of the goods sold, the former will be liable for criminal breach of trust.

LTR may be sanctioned at the request of confide customers of the bank. After sanctioning LTR import bills are handed over to the importer who will clear the goods from custom authorities by making payment of custom duty, VAT and other charges. The goods will remain at the custody of the importer. LTR is allowed for 30-90 days. It should be covered by collateral security and post dated cheques.

Composite limit: Now a days it is common practice for the bank to sanction composite limit for big customers in the form of CC (H), L/C limit, LTR etc. In this case sanction from HO is taken only once in a year. So it promotes customer’s service.

CHAPTER EIGHT

SWOT Analysis And Findings

8.1 SWOT Analysis of NCCBL

Both manufacturing and service oriented business organizations start to possess some weaknesses as time elapses. The weaknesses of an organization can be turned into opportunities if recognized on time. Moreover, overlooking any threat may result in loosing valuable business opportunities. For this reason, an assessment of every business organization is required to judge the performance from the aspects of its strength, weaknesses, opportunity and threat (SWOT) analysis of the bank is as follows:

 

8.2 STRENGTHS

#  The bank provides quality service to the clients compared to its other contemporary competitors.

#  Experienced bankers and corporate personal have formed the management of the bank which formulates the core business strategies.

#  Some services of the bank are automated which attracts large number of clients. For instance, the bank provides Automated Teller Machine (ATM) services in several locations.

#  The bank will very recently introduce on line banking which will enable it to automate all of its operations. At present, several banking functions

reperformed by computers, The bank is also a member o SWIFT (Society for Worldwide Interbank Financial Telecommunication) alliance access which enables the bank to exchange critical financial messages swiftly and cost effectively.

#  The bank has earned customer loyalty as organizational loyalty.

#  NCCBL has already achieved a goodwill among the clients that helps it to retain valuable clients.

#  The banking service is easily accessible and feasible.

#  Banks are the only media through which international trade and commerce                emanate and entire credit transaction, both national and industry.

#  The authorized capital of the bank stood at Tk.2500.0M in 2007.

# Paid up capital of the bank was tk 975.04 m in 2006.

#  The Reserve fund of the bank increased to tk 562.74M in 2006 as against tk 425.22M of previous year, increase being 32.34%.

#  Deposit of the bank at the end of the year 2007 was tk 21478.22M

#  Registering an increase of 33.66% over previous year’s figure.

#  The advances growth of the Bank in increasing rapidly.

# The bank has been pleased to recommend 10% cash and 10% Bonus share for the shareholder.

8.3    WEAKNESSES

 

# Delegation of authority is centralized which makes the employee to realize less responsibility. Thus, the employee morale is deteriorated.

#  The credit proposal evaluation process is lengthy. Therefore, sometimes valuable clients are lost and the bank becomes unable to meet targets.

# No substantive use of Annual confidential Report (performance evaluation form) to reward or to punish the employee. Hence, the employees become inefficient.

#The portfolio of the bank is not that much diversified because it invests major portion of its fund on Government securities.

#  The bank does not go for rural banking. But rural people are bankable which NCCBL get from the activities of the NGOs.

#  The bank lacks aggressive advertising and promotional activities to get a broad geographical coverage.

#  The bank has only a few ATM booths but not in mention able places. So, the scope of the use of ATM card limited.

#  The bank is burdened with a lot of mid and lower level employees due to doing the banking function manually, it is not only increases the operating costs but also consumer’s time as well as lesson customers’ satisfaction.

#  Compared to its competitors the bank does traditional activities.

#  A remarkable portion of the total human resources in inefficient.

#The bank does not have any research and development division.

8.4 OPPORTUNITIES

 

ü  The bank can introduce more innovative and modern customer services to better survive in the competition. For example, the bank can introduce credit cards and go for merchant banking.

ü  The bank can offer micro credit business for individual and small business.

ü  The bank can diversify its portfolio by introducing new sector.

ü  Many branches can be opened to reach the bank’s services in remote locations.

ü  The bank can recruit experienced, efficient and knowledgeable workforce as it offers attractive compensation package and good working environment.

8.5 THREATS

 #  The common attitude of Bangladeshi clients to default.

#  Multinational banks with various attractive means of providing commercial banking services can take the bank’s lucrative clients away.

#  Opening the recent permitted new bank, without implementation of the needed reforms, could lead the unethical competition and horse trading in the country’s sector.

#  Local competitors can also capture a huge market share by offering similar products and services provided by the bank.

#  The most thinking threats of the banks come from the competitors. The bank has a chance to lose its market share to the competitors if it does not take necessary action.

#  Bangladesh Bank sometimes require Private commercial Banks (PCBs) to be abide by such rules and regulations which is not suitable for every commercial banks.

#  The most of the threats for the company are coming from the competitors.

#  Opening of the recently permitted new banks, without implementation of the needed reforms, could lead to unethical competition and house trading in the country’s troubled banking sector.

#  The size of the market and the present state of economic activity did not provide adequate scope for business for a large number of banks with poor management and backdated operating system.

8.6 FINDINGS

To do the internship in the National Credit and Commerce Bank Limited, I work with the officers and I observe many things. And with those observations, description as well as analysis of the topic, I find some factor those are particularly applicable for the NCCBL. Those are given below:

1.        The NCCBL has online banking system for providing better service to the customers. But, the online bank is not implied in all the branch of NCCBL. Mainly, busy cities’ branches (Area like Foreign exchange branch in Motijheel, Dhaka, Chittagong) have that kind of facilities. Having manual and online banking at the same time, the bank sometime find some problem to do their inter branch activities.

2.        To do the online banking, NCCBL use MICROBANKER a banking software to run a banking operation. This software has lot of option to do, but still it has some lacking. To this system, only limited use can login at a same time. So, all the employees of the bank cannot work with this software at a time, and some time it becomes slow to take the entry. And some statement cannot be provided by this software which other bank’s system can do, such as the MIROBANKER is not able to provide the statement of Fixed Deposit.

3.        Only a few officers know, entirely, how to operate the MICROBANK (online banking software of NCCBL).

4.       Currently, one of the most profitable products for NCCBL is Money Gram which is used to send foreign remittance. Money Gram is less charge and time than the Union Money Transfer and other money transfer agent which normally attract the growing market of foreign remittance. At the sometime, the bank is providing the service Money Express, UK money speed.

5.        The NCCBL is using SWIFT (Society for Worldwide Inter Bank Financial Telecommunication) to provide better service for the customer of foreign trade and exchange. This allows doing many businesses with the foreign market. And it always gives change to the bank to update the foreign financial currency and market information regularly.

6.     The accountability is working in the NCCBL. Every day they have finish their transaction and if there is any miss match, the employees have to explain it and even have to pay for it. So the condition of transparency is good here. This job use to do the Accounts and Administration Department.

7.   The NCCBL has a training institute to build a better work force. When a  provisional       officer joint the bank, the bank arrange some training course associate with Bangladesh  “Institute of Bank Management” to improve the officer’s skill.

8.   The bank had introduced its ATM card to the market and it has only a few ATM Booths right now. Inefficiency of the management decision makes the scope of the ATM services limited.

9.   NCCBL has introduced the Visa Card to the market in the year of 2005. It gives the customer access to the local and foreign market. NCCBL is providing this service with comparatively low interest and charge.

10. The NCCBL is showing their growth by increasing the number of branch. In 2000, it had 27 branches. The management of the bank is able to find of the need of the client mainly the middle class business owner. Though the strategy of bank is conservation, by selecting the right target group the bank has increase growth of their market. Currently they have 57 branches all over the country.

9. Regression

Interpretation of R square: The model summary shows some important indicators of the explaining power of the model. The R-square value shows how much change in the dependent variable is caused by the independent variables. In this case an r-square value of .551 or 55.1% means 55.1% of the change in dependent variable is caused by the four independent variables.

 Interpretation of Adjusted R-square: On the other hand, the adjusted r-square value shows how much change in the dependent variable is caused by statistically significant variables. So in this case, an adjusted r-square value of .462 or 46.2% means that 4602% of the change in dependent variable is caused by statistically significant variables. The standard error of the estimate measures the accuracy of the predictions within the regression line, which is around .899.

ANOVA

The ANOVA table shows the total variation, the explained variation and the unexplained variation (residual) due to the error. The explained variation is denoted as SSR and the unexplained variation due to residuals is denoted by SSE. The total variation (SST) is 36 and variation explained by regression (SSR) is 19.852 and variation explained by regression error SSE is 16.148. So the explaining power of the regression model is good since SSE is less than SSR. If we divide the SSR with SST, we get the value of r-square which we have already found out to be 55.1%.

Multiple Linear Regression Equation

Y (Satisfaction Level with NCC Bank) = -1.641 + 0.817 X1 (Employees willingness to help) + 0.546 X2 (Feeling safe in transaction) + 0.932 X3 (Statements are clearly understandable) +0.118 X4 (Modern equipment)

 Interpretation of Unstandardized Beta Coefficients:

The Beta (β) coefficients are the estimated coefficients of population variables. Unstandardized coefficients mean that they include the y-intercept in the regression equation, which is often meaningless. Where else, standardized coefficients are used in standardized regression equation which has no y-intercept.

Employee’s willingness to help has an unstandardized beta of 0.817 which means that if other variables are held constant, then for every unit of increase in employee’s willingness to help, the wiliness to help will increase by 0.817 units.

Feeling safe in transaction has an unstandardized beta of 0.546 which means that if other variables are held constant, then for every unit of increase in safety in transaction, the safety level with NCC Bank will rise by 0.546 units.

Clearly understandable bank statement has an unstandardized beta of 0.932 which means that if other variables are held constant, then for every unit of increase in clearly understanding of statements, the satisfaction level with NCC Bank will rise by 0.932 units.

Using of modern equipment of the bank has an unstandardized beta of 0.118 which means that if other variables are held constant, then for every unit of increase of using modern equipment, the satisfaction level with NCC Bank will rise by 0.118 units.

Standardized Multiple Linear Regression Equation

Y (Satisfaction Level with NCC Bank) = 0.754+ 0.290 X1 (Employees willingness to help) + 0.239 X2 (Feeling safe in transaction) + 0.410 X3 (statements are clearly understandable) +0.317 X4 (Modern equipment).

Interpretation of Standardized Beta Coefficients:

Employee’s willingness to help has a standardized beta of 0.290 which means that if other variables are held constant, then for every unit of increase in satisfaction with employees helping willingness, the satisfaction with NCC Bank will increase by 0.290 units.

 Feeling safe in transaction has a standardized beta of 0.239 which means that if other variables are held constant, then for every unit of increase in safety transaction, the satisfaction level with NCC Bank will rise by 0.239 units.

Clearly understandable statements has a standardized beta of 0.410 which means that if other variables are held constant, then for every unit of increase in clearly understandable statements, the satisfaction level with NCC Bank will rise by 0.410 units.

Modern equipment of the bank has a standardized beta of 0.317 which means that if other variables are held constant, then for every unit of increase in using modern equipment, the satisfaction level with NCC Bank will rise by 0.317 units.

 9.1 Cross tab 1

For the cross tabulation analysis we have to consider two categories which are “Satisfaction level with Marketing strategy” and “Satisfaction level with NCC Bank”.

Ho= There is no relationship between Satisfaction level with current Marketing strategy and satisfaction level with NCC Bank.

H1= There is relationship between Satisfaction level with current Marketing strategy and satisfaction level with NCC Bank.

Chi square (2) = 57.630; P= .00

All this substantial differences were significant because P value is less than .05

     So, we have to reject the Ho hypothesis.

  Cross tabs 2

For the cross tabulation analysis we have to consider two categories which are “Modern equipment” and “Satisfaction level with NCC Bank”.

Ho= There is no relationship between Modern equipment and satisfaction level with NCC Bank.

H1= There is relationship between Modern equipment and satisfaction level with NCC Bank.

Chi square (2) = 18.214; P= .20

All this substantial differences were significant because P value was smaller than .05.

     So, we have to reject the Ho hypothesis.

 Cross tabs 3

For the cross tabulation analysis we have to consider two categories which are “Preference of NCCBL” and “Satisfaction level with NCC Bank”.

Ho= There is no relationship between Preference of NCCBL and satisfaction level with NCC Bank.

H1= There is relationship between Preference of NCCBL and satisfaction level with NCC Bank.

Chi square (2) = 28.093; P= .005

All this substantial differences were significant because P value was smaller than .05.

     So, we have to reject the Ho hypothesis.

 

9.2 Findings

In the frequency table, it shows that most of the clients of NCC Bank are from business and service category. The most important reason for choosing NCC Bank is its go service quality and for goodwill as well. Most of the respondents come to know about NCC Bank through WOM (Word of Mouth). 24% of the respondents are satisfied with the current marketing strategy which is followed by the NCC Bank, so the Bank should take some steps to improve its strategy. On the other hand 28% of the respondents are somewhat satisfied while dealing with NCC bank. So NCC bank needs to be more concentrate while dealing with customer. Though 72% respondents thinks that employees of NCC bank are always helpful but still 20% respondents are unhappy. So they need to focus more in terms of what customers want. And in both the case of feeing safe while making transaction and understanding statements easily 60% respondents are happy. So it plays a motive role for NCC bank. And almost 80% people are concern about the equipment they use, which gives a good indication in the market place.

In the regression table, it shows that there is significant relation between the satisfactions with NCC Bank and its current quality service. So, the null hypothesis should be rejected. As a result, the alternative hypothesis- Customer of NCC Bank are satisfied with the current quality of service and products they are offering.

In the cross tabs, there is no relationship between modern equipment and satisfaction with NCC Bank Ltd. But there is relationship between current strategy of marketing and satisfaction with NCC Bank, and improvement need or not in marketing strategies and satisfaction with NCC Bank.

At the end it is to be said that NCC Bank needs some improvement in its marketing strategies though it is doing well with its current quality service and it has positive impact on their customer.

    

9.3RECOMMENDATION

As per earnest observation some suggestions for the improvement of the situation are given below:

#  To attract more clients NCCBL has to create a new marketing strategy, which will increase the total export Import business.

#  Effective and efficient initiatives are necessary to recover the default loans.

#  Attractive incentive ‑package for the exporter will help to increase the Export and accordingly it will diminish the balance of payment gap of NCCBL.

#  Different types of training very much required for the bank officials.

# Computerized banking system and latest communication device are the most important elements for this century. So, for the sound and stable Banking operation, NCCIBL has no alternative but the modernization.

#  Foreign exchange operations of other banks are more dynamic and less time consuming. NCCBL should take some initiative to compete with those Banks.

#  Bank can provide foreign market report, which will enable the exporter to evaluate the demand for their products in foreign countries.

#  The Bank must be to introduce On Line Banking between all branches.

# Number of branches is very limited of this Bank. They have to increase the number of branches at various key points of the country

 

9.4 Conclusion

Today’s business is very competitive and complex. To survive in the relate sector the organization need competitive people and has to take some effective policy. Every country must have a plan for important role in economic activities. Bangladesh is no exception of that. Commercial Banks’ financial development and economic developments are closely related. That’s why the private commercial banks; are playing significant role in this regard.

The National credit and Commerce Bank Limited (NCCBL) is one of the best banks in respect of service, profitability and strength among the private commercial banks; in our country and also to play a catalyst role in the formation of capital market. National Credit and commerce Bank Limited bears a unique history of its own. The bank has set up a new standard in financing in the Industrial, Trade and Foreign Exchange Business. Its various deposit and credit products have also attracted the clients both corporate and individuals who feel comfort in doing business with the bank.

The National Credit and commerce Bank Limited (NCCBL) is now been called a modern bank that undertakes all its operations at an international standard. Over the years, NCCBL has built itself as one of the pillars of Bangladesh’s financial sector and is playing a pivotal role in extending the role of the private sector of the economy.

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Internship report on National credit and commerce bank Ltd [ Part-1 ]

Internship report on National credit and commerce bank Ltd [ Part-2 ]

Internship report on National credit and commerce bank Ltd [ Part-3 ]