Marketing System of NCCBL Bank

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.

Limitation

   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.

Scope

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.

Historical perspective

“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 BranchAddress
01.Motijheel Main Branch6, Motijheel C/A, Dhaka.
02.Agrabad BranchNur Chamber, 34, Agrabad C/A

(Ground Floor),Agrabad, Chittagong.

03.Khatunganj Branch601, Ramjoy Mahajan Lane, Khatunganj, Chittagong.
04.Khulna Branch3, K. D. Ghosh Road, Khulna.
05.Babubazar BranchReaz Medicine Market,57, Mitford Road, Babubazar,Dhaka.
06.Jubilee Road. BranchDominionPlaza (1ST Floor), 5, Jubilee Road, Chittagong.
07.O.R. Nizam Road Branch659, O. R. Nizam Road,CentralPlaza, Chittagong.
08.Chowhatta BranchSyed Complex, Air Port Road, Ambarkhana, Sylhet
09.Dhanmondi BranchHouse No. 275/G, Road No. 27 (Old),

Dhanmondi R/A, Dhaka.

10.Moghbazar Branch382, Moghbazar, Tongi Diversion Road, Dhaka.
11.Gulshan Branch85, Gulshan Avenue, Gulshan, Dhaka.
12.Malibagh BranchB-61, Malibag Chowdhury Para, D.I.T Road, Dhaka.
13.Cox’s Bazar BranchMain Road, Bazar Ghata, Cox’s Bazar.
14.Laldighirpar BranchIdrish Bhaban, Mohajan Pattay, Laldighirpar, Sylhet.
15.Jatrabari Branch123/1-A, South Jatrabari, Dhaka-1204.
16.Mirpur BranchAnwarMansion Plot no 1/1 & 1/2

Road no. 1&2 Section 10, Mirpur, Dhaka.

17.Feni BranchHazi Ibrahim Hossain Market, 10, Trank Road, Feni.
18.Kadamtali BranchRafiquePlaza, 1151,Dhaka Trank Road,

Kadamtali, Chittagong.

19.Laxmipur BranchChowdhury Super Market, College Road, Laxmipur.
20.Mitford Branch34, Mitford Road (1ST Floor), Dhaka.
21.Bangshal Branch216, Bangshal Road, Dhaka.
22.Majhirghat Branch15, Strand Road, Chittagong.
23.Moulvibazar BranchYakubMansion, Sylhet Road, Moulvibazar.
24.Jessor BranchJessTower, M. K. Road, Jessor.
25.Rangpur BranchRainbow Plaza G.L. Roy Road, Rangpur.
26.Kawran Bazar BranchHasneyTower 3/A,Kawran Bazar C/A, Dhaka.
27.Dilkusha BranchHossain Chamber, 43, Dilkusha C/A, Dhaka.
28.Islampur Branch2/1, Ahsanullah Road (2NDFloor), Islampur, Dhaka.
29.Halishahar BranchPlot No. 9, Block-L, Chittagong-Dhaka Highway,

Halishahar, Chittagong.

30.Foreign Exchange Branch29/1, Toyenbee Circular Road, Motijheel C/A, Dhaka.
31.Madunaghat BranchMadunaghat Bazar, Main Road, P. S. Hathazari, Chittagong.
32.Uttara BranchHouse # 6, Road # 12, Sector # 6,

UttaraModelTown, Dhaka.

PERFORMANCE of NCCBL, Moghbazar Branch as on 30-11-2003

DEPOSIT (Figures in Crore)
1998

 

1999

 

2000

 

2001

 

2002

 

67.6380.6388.56102.56111.26

Source: Balance Sheet of NCCBL Moghbazar Branch

 ADVACCE (Figures in Crore)
 2000 2001 2002
77.9599.09121.70

Source: Quarterly Balance Sheet of NCCBL Moghbazar Branch.

Profits (Figures in Lac)
1998

 

1999

 

2000

 

2001

 

2002

 

57.45114.55124.21202.17206.89

                Source: Balance Sheet of NCCBL Moghbazar Branch

Mission of NCCBL

   We aim to become one of the leading Banks in Bangladesh by our prudence                                                  fair and quality of operations

   We intend to meet the needs of our clients and enhance our profitability by creating corporate culture.

We aim to ensure our competitive advantages by upgrading banking technology and information system.

We provided high quality financial services to strengthen the well being and success of individual, industries and business communities.

 We believe in strong capitalization.

   We maintain high standard of corporate and business ethics.

   We extend highest quality of services, which attracts the customers to choose us first.

   We create wealth for the shareholders.

   We maintain congenial atmosphere for which people are proud and eager to work with NCCBL Bank.

   We believe in disciplined growth strategy.

   We encourage various term investments to investors to buy our stock.

   We intend to plat more important in the economic development of Bangladesh and its financial relation with the rest of the world by interlining both domestic and international operations.

 Methodology

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.

 SAMPLING DESIGN

Deposit Achievement of Branches

SL. NO.Name of The BranchDEPOSIT (Figure in Crore)
1998

 

1999

 

2000

 

2001

 

2002

 

DHAKA
01.Motijheel Main Branch157.30176.70161.62162.49253.34
02.Moghbazar Branch67.6380.6388.56102.56111.26
03.Malibag Branch21.2135.9545.2958.5454.82
04.Jatrabari Branch8.3916.5320.5226.5529.77
05.Gulshan Branch32.3652.5876.30115.74150.60
06.Dhanmondi Branch28.2230.8638.9074.6591.01
07.Babubazar Branch35.0833.7238.2735.4629.50
08.Mitford Branch23.4130.8836.8834.7225.75
09.Bangshal Branch14.5328.0829.4336.8337.55
10.Mirpur Branch18.1625.9132.4736.8138.53
11.Kawran Bazar Branch13.6318.3330.4130.8443.80
12.Dilkusha Branch21.4441.2668.23101.9090.83
13.Islampur Branch   16.5527.03
14.Foreign Exchange Branch    35.16
Sub Total441.36571.43666.88833.641018.95
CHITTAGONG
01.Agrabad Branch81.2797.33113.34127.35136.74
02.Khatunganj Branch30.2936.6946.3153.2166.92
03.O. R. Nizam Road20.2830.4538.3944.5857.17
04.Jubilee Rd. Branch21.0527.7432.8140.4647.70
05.Kadamtali Branch10.3812.3015.4920.4328.71
06.Majhirghat Branch15.3222.4630.5029.6235.91
07.Cox’s Bazar Branch8.9810.389.4611.4716.11
08.Halishahar Branch   10.4916.41
09.Madunaghat Branch    3.12
Sub Total187.57237.35286.30337.61408.79
OTHERS
01Chowhatta Branch8.159.2810.8017.8016.82
02Laldighirpar Branch4.668.3315.6118.6623.95
03Moulvibazar Branch6.088.2011.1614.2218.21
04Laxmipur Branch5.075.206.579.1112.20
05Feni Branch10.4211.2311.2114.8418.53
06Khulna Branch13.8721.1621.8322.2239.38
07Jessor Branch5.237.2112.8812.3313.54
08Rangpur Branch9.2911.4315.1819.3925.23
Sub Total62.7782.04105.24128.57167.86
Head Office    43.53
Grand Total696.50901.931075.601318.03163912

Comparative Position of Loans & Advance

SL. NO.Name of The BranchADVANCE (Figure in Crore)
2000

 

2001

 

2002

 

DHAKA
01.Motijheel Main Branch173.98206.58250.10
02.Moghbazar Branch77.9599.09121.70
03.Malibag Branch12.6217.9923.44
04.Jatrabari Branch16.9419.8016.52
05.Gulshan Branch4.474.635.70
06.Dhanmondi Branch32.1064.5688.17
07.Babubazar Branch13.8519.7919.78
08.Mitford Branch42.3234.0129.50
09.Bangshal Branch2.755.279.78
10.Mirpur Branch23.3625.5826.78
11.Kawran Bazar Branch10.0015.2017.38
12.Dilkusha Branch68.51102.95147.84
13.Islampur Branch1.207.59
14.Foreign Exchange Branch25.67
Sub Total478.85616.65789.95
CHITTAGONG
01.Agrabad Branch122.55188.79203.25
02.Khatunganj Branch71.97104.4272.44
03.O. R. Nizam Road17.7228.9553.80
04.Jubilee Rd. Branch30.9738.8452.54
05.Kadamtali Branch10.518.8417.64
06.Majhirghat Branch12.1226.1132.75
07.Cox’s Bazar Branch3.673.795.89
08.Halishahar Branch1.407.03
09.Madunaghat Branch0.14
 Sub Total269.51401.14445.48
OTHERS
01Chowhatta Branch3.574.014.33
02Laldighirpar Branch0.201.621.99
03Moulvibazar Branch1.682.142.23
04Laxmipur Branch1.341.672.27
05Feni Branch2.042.142.21
06Khulna Branch22.7231.6339.79
07Jessor Branch8.315.928.98
08Rangpur Branch8.2811.9317.34
Sub Total48.1461.0679.14
Grand Total796.501078.871313.81

Profit Achievement of Branches

SL. NO.Name of The BranchDEPOSIT (Figure in Crore)
199819992000200120022003
DHAKA
01.Motijheel Main Branch10.3171.34690.991253.341302.261093.24
02.Moghbazar Branch278.01275.78300.47251.66302.5764.11
03.Malibag Branch57.45114.55124.21202.17206.89107.67
04.Jatrabari Branch16.1046.0487.12111.04105.93181.23
05.Gulshan Branch205.22251.67316.92557.80602.60706.12
06.Dhanmondi Branch119.86132.71158.6680.90202.69264.08
07.Babubazar Branch228.24302.52300.04274.95143.29125.70
08.Mitford Branch121.18152.00201.1786.2491.61116.64
09.Bangshal Branch113.30142.19174.35143.41146.3118.85
10.Mirpur Branch57.1075.0944.7061.07109.33136.14
11.Kawran Bazar Branch3.8728.2651.8355.61115.30133.95
12.Dilkusha Branch56.45167.48354.00533.00562.14630.48
13.Islampur Branch   (8.65)35.5366.23
14.Foreign Exchange Branch    61.72238.75
Sub Total1267.091759.632804.463602.543988.173883.19
CHITTAGONG
01.Agrabad Branch359.15361.00619.291007.261020.90744.46
02.Khatunganj Branch207.31253.00404.97527.86411.26253.13
03.O. R. Nizam Road75.19103.0090.09100.53175.7860.08
04.Jubilee Rd. Branch185.06251.00251.31107.37203.42315.90
05.Kadamtali Branch40.5960.00100.1360.9750.21-7.30
06.Majhirghat Branch68.21161.00125.05130.34175.09108.85
07.Cox’s Bazar Branch25.1726.1112.182.0116.0845.21
08.Halishahar Branch   -6.7912.1620.02
09.Madunaghat Branch    -13.48-8.64
Sub Total960.681215.111603.021992.552051.421531.71
OTHERS
01Chowhatta Branch23.1228.2543.813.6020.59147.52
02Laldighirpar Branch6.2216.8533.2034.3956.2920.52
03Moulvibazar Branch10.0612.1710.2412.4231.5327.96
04Laxmipur Branch14.8115.4310.1625.1234.5540.22
05Feni Branch42.1843.5610.38-1.2718.2532.36
06Khulna Branch59.02100.5340.1734.03102.9045.13
07Jessor Branch5.0321.077.8525.8328.5834.38
08Rangpur Branch45.8656.3858.07111.08116.06131.10
Sub Total206.03294.14213.88245.20408.75479.19
Grand Total2108.732907.014292.435686.515975.025871.18

Source: Annual Report 2002

Data Analysis

 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.

 INVESTMENT PERFORMANCE OF NCCBL:

The size of investment portfolio of the Bank as at 31stdecember ,2002 stood at tk.1722.01million against Tk.1283.46 million in the previous year indicating an increase of 34.17 percent . the portfolio comprising of Treasury bills, Debentures, ordinary shares and Prize Bonds.

 FOREIGN EXCHANGE PERFORMANCE OF NCCBL:

Foreign trade operation of the bank made significant role in the overall business development of the bank. During the year 2003 the Bank handled foreign exchange transactions amounting to tk.17945 million which is an increase of 45.23% over the last year.    

 TOTAL ASSET PERFORMANCE OF NCCBL:

 NCCBL’s ASSET situation from 1993 to 2002are given below. The total asset is amounting 18685.19 million in the year 2002 which is 16.12% over than previous year.

Total Assets (1993 – 2002)

Source: Annual report 2002

Distribution of investment portfolio are given bellow:

 PROFIT AND LOSS PERFORMANCE OF NCCBL:

NCCBL the make loses in the year 1993 and 1994. But during the year 1995 to 2000

the bank make remarkable profit growth .the bank make Tk. 597.50 million in the year ended 31st december2002 which is now increasing with a lower rate.

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.

 Conclusion

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.

BIBLIOGRAPHY:

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.

NCCBL Bank