Background of the Study
The internship program is itself an attempt to provide graduates an orientation to a real life situation in which they can observe and evaluate the use and applicability of theoretical concepts, which were taught in the classroom. As per norm, this report is the requirement of fulfillment of the internship program as well as of BBA program.
Objectives of the study
This study is aimed at providing me invaluable practical knowledge about banking operation system in Bangladesh. It will also help me to develop my concept of banking and it operations. The objectives are:
To relate theoretical knowledge with practical experience in several functions of the bank.
To be acquainted with how bank perform its operation.
To analyze the marketing procedure of financial products.
To analyze the major advantage of Southeast Bank’s service sector.
To present my observation and suggestions to the bank.
To make myself more confident and active in future to handle my job.
Top management of NCCBL could not able to provide me time for discussion most of the times because of their busyness. Since the employees were always under tremendous work pressure, so they could not able to extend their proper cooperation. Another limitation of this report is Bank’s policy of not disclosing some data.
The scope of the report is very focused. The scope of the report is to identify the basic functions of NCCBL and marketing aspects of consumers’ credit scheme. It is an organization that is committed to building resplendent future establishments for its prospective customers. This report deals with primary marketing activities performed for the excellence of the organization and also the report covers various departments of National Credit & Commerce Bank Limited (NCCBL). This report is mostly about what I learnt, observed and felt during the period of my internship program in NCCBL
The areas focused in the report are like the followings:
- The management of the Products and Services of NCCBL.
- The process of Segmentation, Targeting and positioning for its offerings.
- The overall Pricing strategies and tactics followed by NCCBL authority.
- An Intricate analysis of Strengths and Weaknesses of the NCCBL in comparison to its competitors.
ORGANIZATION: AN OVERVIEW
“To serve the nation through our excellent customer service” is the mission of National Credit and Commerce Bank Limited trough a contemplation of assuring ‘A professional term of Bankers is running the day to day operation of the bank’.
The journey of National Credit and Commerce Bank for Excellence in Banking as a scheduled Commercial Bank begun in 17 May 1993 as a public limited company incorporated in Bangladesh under the Companies Act 1994 and listed in Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited. It was the time when a rapid economic development in the country concurrent with urbanization and life style changes created demands for new banking products and services.
The institution started its function back in 1985 as an investment company in the name and style of National Credit Ltd. Paid-up capital of the company was Tk. 5.00 crore only at that time. NCL performed well for near about 7 years. The core objective of the company was to play a catalyst role in the capital market of the country by way of participating in security trading, underwriting, etc. However, in 1992 in the backdrop of closure of BCCI and BCI, another investment company, NCL faced a severe setback in respect of business. With active initiative taken by the members of the board and the management team, the company could overcome the problem and get it converted into a full-fledged Commercial Bank on 17.05.1993 after obtaining license from Bangladesh Bank as National Credit and Commerce Bank Limited. The authorized capital of the bank was fixed at Tk.75.00 crore and paid capital at Tk.39.00 crore of which 19.50 crore was subscribed by the Sponsors at that time. Present paid capital stands at Tk.48.05 crore. At present the bank is operating through 31 Branches and 1 Booth at most key point of the country.
Nature of the Business
NCCBL is a progressive commercial bank in private sector in Bangladesh. It creates new opportunities for its clients. It gives customized services and maintains harmonious banker-clients relationship. It contributes toward formation of national capital, growth of savings and investment in trade, commerce and industrial sectors. It provides different types of commercial banking services to the customers of all strata in the society within the stipulation laid down in the Bank Company Act 1991 rules and regulation framed by the Bangladesh bank from time to time.
NAME OF THE BRANCHEs
|SL. NO.||Name of The Branch||Address|
|01.||Motijheel Main Branch||6, Motijheel C/A, Dhaka.|
|02.||Agrabad Branch||Nur Chamber, 34, Agrabad C/A(Ground Floor),Agrabad, Chittagong.|
|03.||Khatunganj Branch||601, Ramjoy Mahajan Lane, Khatunganj, Chittagong.|
|04.||Khulna Branch||3, K. D. Ghosh Road, Khulna.|
|05.||Babubazar Branch||Reaz Medicine Market,57, Mitford Road, Babubazar,Dhaka.|
|06.||Jubilee Road. Branch||Dominion Plaza (1ST Floor), 5, Jubilee Road, Chittagong.|
|07.||O.R. Nizam Road Branch||659, O. R. Nizam Road,Central Plaza, Chittagong.|
|08.||Chowhatta Branch||Syed Complex, Air Port Road, Ambarkhana, Sylhet|
|09.||Dhanmondi Branch||House No. 275/G, Road No. 27 (Old),Dhanmondi R/A, Dhaka.|
|10.||Moghbazar Branch||382, Moghbazar, Tongi Diversion Road, Dhaka.|
|11.||Gulshan Branch||85, Gulshan Avenue, Gulshan, Dhaka.|
|12.||Malibagh Branch||B-61, Malibag Chowdhury Para, D.I.T Road, Dhaka.|
|13.||Cox’s Bazar Branch||Main Road, Bazar Ghata, Cox’s Bazar.|
|14.||Laldighirpar Branch||Idrish Bhaban, Mohajan Pattay, Laldighirpar, Sylhet.|
|15.||Jatrabari Branch||123/1-A, South Jatrabari, Dhaka-1204.|
|16.||Mirpur Branch||Anwar Mansion Plot no 1/1 & 1/2Road no. 1&2 Section 10, Mirpur, Dhaka.|
|17.||Feni Branch||Hazi Ibrahim Hossain Market, 10, Trank Road, Feni.|
|18.||Kadamtali Branch||Rafique Plaza, 1151,Dhaka Trank Road,Kadamtali, Chittagong.|
|19.||Laxmipur Branch||Chowdhury Super Market, College Road, Laxmipur.|
|20.||Mitford Branch||34, Mitford Road (1ST Floor), Dhaka.|
|21.||Bangshal Branch||216, Bangshal Road, Dhaka.|
|22.||Majhirghat Branch||15, Strand Road, Chittagong.|
|23.||Moulvibazar Branch||Yakub Mansion, Sylhet Road, Moulvibazar.|
|24.||Jessor Branch||Jess Tower, M. K. Road, Jessor.|
|25.||Rangpur Branch||Rainbow Plaza G.L. Roy Road, Rangpur.|
|26.||Kawran Bazar Branch||Hasney Tower 3/A,Kawran Bazar C/A, Dhaka.|
|27.||Dilkusha Branch||Hossain Chamber, 43, Dilkusha C/A, Dhaka.|
|28.||Islampur Branch||2/1, Ahsanullah Road (2NDFloor), Islampur, Dhaka.|
|29.||Halishahar Branch||Plot No. 9, Block-L, Chittagong-Dhaka Highway,Halishahar, Chittagong.|
|30.||Foreign Exchange Branch||29/1, Toyenbee Circular Road, Motijheel C/A, Dhaka.|
|31.||Madunaghat Branch||Madunaghat Bazar, Main Road, P. S. Hathazari, Chittagong.|
|32.||Uttara Branch||House # 6, Road # 12, Sector # 6,Uttara Model Town, Dhaka.|
Both primary and secondary sources are used in collecting information for preparing this report. During internship in NCCBL, I was routed through each of the departments and spent few days in department according to the schedule given at the beginning of the internship program. I interviewed managers and officers of the relevant departments and observed their activities. Every now and then I engaged in conversation with the management. This is basically how I gathered information through primary sources. I also met through relevant manuals and reports of NCCBL for collection information.
Deposit Achievement of Branches
|SL. NO.||Name of The Branch||DEPOSIT (Figure in Crore)|
|01.||Motijheel Main Branch||157.30||176.70||161.62||162.49||253.34|
|11.||Kawran Bazar Branch||13.63||18.33||30.41||30.84||43.80|
|14.||Foreign Exchange Branch||35.16|
|03.||O. R. Nizam Road||20.28||30.45||38.39||44.58||57.17|
|04.||Jubilee Rd. Branch||21.05||27.74||32.81||40.46||47.70|
|07.||Cox’s Bazar Branch||8.98||10.38||9.46||11.47||16.11|
Comparative Position of Loans & Advance
|SL. NO.||Name of The Branch||ADVANCE (Figure in Crore)|
|01.||Motijheel Main Branch||173.98||206.58||250.10|
|11.||Kawran Bazar Branch||10.00||15.20||17.38|
|14.||Foreign Exchange Branch||–||–||25.67|
|03.||O. R. Nizam Road||17.72||28.95||53.80|
|04.||Jubilee Rd. Branch||30.97||38.84||52.54|
|07.||Cox’s Bazar Branch||3.67||3.79||5.89|
Profit Achievement of Branches
|SL. NO.||Name of The Branch||DEPOSIT (Figure in Crore)|
|01.||Motijheel Main Branch||10.31||71.34||690.99||1253.34||1302.26||1093.24|
|11.||Kawran Bazar Branch||3.87||28.26||51.83||55.61||115.30||133.95|
|14.||Foreign Exchange Branch||61.72||238.75|
|03.||O. R. Nizam Road||75.19||103.00||90.09||100.53||175.78||60.08|
|04.||Jubilee Rd. Branch||185.06||251.00||251.31||107.37||203.42||315.90|
|07.||Cox’s Bazar Branch||25.17||26.11||12.18||2.01||16.08||45.21|
Source: Annual Report 2002
DEPOSIT PERFORMANCE OF NCCBL
The bank mobilized a total deposit of 1639.12 million as on 31st December 2002 as against Tk.13180.3 million as on 31st December 2000 showing an increase of 24.34% over the preceding year. Several welfare deposit schemes introduced by the bank have helped in mobilization of savings and growth in deposits o the bank.
CREDIT PERFORMANCE OF NCCBL:
The Bank followed its own credit policy within guidelines emanating from Bangladesh Bank in respect of loanable fund .The bank continues to explore and diversify the area of financing in addition to traditional financing of domestic and international trade. It financed a number of industrial projects and participated in industrial loans in syndication with other banks during the year. Consumer credit scheme and lease Financing introduced by the bank earlier are also operating satisfactorily. The total loans and advances of Bank increases to Tk.13138.1 million as on 31st December2002 against Tk. 10788.7 million as on 31st December 2001 indicating an increase of 21.78 percent.
Finding & Recommendation
1) NCCBL Moghbazar branch has SWIFT facilities. Very few bank in our country offer this. By using this modern technology Moghbazar branch, provide fastest service on L/C operating to it’s client.
2) Pre-shipment inspection certificate should obtain from the exporter of back to back L/C. Because it reduces fraud and forgery in case of import against master export L/C. But all the time this Pre-shipment inspection certificate are not wanted by the bank.
3) On some cases, this branch takes different Margin and commission on L/Cs from different customer. A customer is allowed to open a L/C even with 10% margin. I think that the bank should review the customers’ behavior for a period and should develop a certain policy in this regard.
4) In case of Export L/Cs, sometimes customers insist to give their payments though their documents are found discrepant. In some cases, Bank has to give payment to these customers for different reasons. I think the Bank should be as much strict as possible about giving payments against discrepant documents without hurting the customers.
5) NCCBL Moghbazar branch did not practice revocable L/C.
6) In many cases, the foreign banks want confirmations from other foreign banks with which this bank has correspondence. This proves the poor financial condition of our country. Banks should try to improve this situation.
7) The bank should try to arrange more training programs for their officials. Quality training will help the officials to enrich them with more recent knowledge of International Trade Financing.
8) In case of Export L/Cs, the Government encourages the exporters by giving different facilities like tax-cuts. I think the bank should also think about such type of facilities to be given to the Exporters because Bangladeshi exporters like Readymade garments exporters are going to face a tough situation in coming years from the exporters of other countries.
9) NCCBL Moghbazar branch has not adequate number of skilled manpower in foreign exchange department.
10) NCCBL is one of the largest private commercial bank in our country. Therefore, it must think seriously to adopt ON LINE banking.
During the three months Practical orientation program at Moghbazar Branch, almost all the desks have been observed more or less. This Practical orientation program, in first, has been arranged for gaining knowledge of practical banking and to compare this practical knowledge with theoretical knowledge. Comparing practical knowledge with theoretical involves identification of weakness in the branch activities and making recommendations for solving the weakness identified. Though all departments and sections are covered in the internship program, it is not possible to go to the depth of each activities of branch because of time limitation. However, highest effort has been given to achieve the objectives the internship program.
In the conclusion, We want to give thanks to the NCCBL Head Office authority, especially Mr.Md. Nurul Amin EVP, Chief of the Human Resources Division. I want to give thanks to Mr. Md. Khorshed Alam, AVP, Mr. Md. Mohiuddin, AVP, Mr. Md. Rabiul Alam Tipu, AVP, Mr. A.H.M. Manzur Qader Khan ,SAVP Mr. T. M. Faruque Chowdhury SVP, NCCBL Moghbazar Branch. I give special thanks to all the officials of NCCBL Moghbazar Branch who helped me a lot about my practical exposure in the Bank. I want to express my deepest respect and thanks to our BBA Program Director, Professor Mian Lutfar Rahman who guided me with their kind help in completing my orientation program in Bank.
Ali, S.A., Foreign Exchange and Financing of Foreign Trade, Lita Academics, Dhaka, 1995.
Awasthi, G.D., Trade Payments: Commentary, Cases & Text, Academy of Business Studies, New Delhi, 1997.
Basudevan, S.V., Theories of Commercial Banking, Reading Materials on Theory & Practice of Banking (B-101), Bangladesh Institute of Bank Management (BIBM), 2000.
Habib, S.M.A., Project Appraisal – Concept, Techniques & Uses, Reading Materials on Credit Management in Banks (B-104), Bangladesh Institute of Bank Management, 2000.
Miah, A.A., Scrutiny, Lodgement and Retirement of Import Bills, Reading Materials on International Trade & Finance (E-102), Bangladesh Institute of Bank Management (BIBM), 2000.
Morium, S. & Rahman, S., Credit Investigation and Preparation of Credit Report, Reading Materials on Credit Management in Banks (B-104), Bangladesh Institute of Bank Management, 2000.
NCC Bank Annual Report, 2000.
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