Customer Satisfaction Analysis on General Banking Activities of SIBL

Customer Satisfaction Analysis on General Banking Activities
of Social Islami Bank Limited (SIBL)

Social Islami Bank Limited (SIBL) is a saving money organization enlisted under the organizations Act 1994 with its heads office 15 Dilkusha C/A, Dhaka-1000. The bank works as a booked bank under a managing an account permit issued by the Bangladesh Bank. The Bank began its operation from 22, November 1995. SIBL is a promoted new creating Bank with an approved capital of Taka 4000 million in 2008 and paid up capital of Taka 1309.88 million in 2008 furthermore 1119.55 million individually as of December 2007.

In the formal corporate segment, this Bank would, among others, offer the most up-to information keeping money administrations through working of different sorts of store and speculation records, financing exchange, giving letters of insurance, opening letters of credit, gathering of bills effecting household and global exchange, renting of gear and shopper durables, contract buy and portion deal for capital products, interest in minimal effort lodging and administration of genuine domains, participatory interest in different modern, horticulture, transport, instructive and wellbeing activities thus no.

 In the Non-formal non-corporate segment, it would, among others, include in real money Waqf Certificate and advancement and administration of WAQF and MOSQUE properties and Trust stores. For arranging my temporary job I have been spot in Social Islami Bank Limited, Mirpur Road Branch Dhaka. There are 03 segments in N/R Branch. They are: 1) General Banking, 2) Investment Department, 3) Foreign Exchange Department. I should commit my most extreme exertion and regard for take in investor’s capacities. After finishing of the entry level position, I will render my everything learning to display the report on customer satisfaction analysis on general banking of sibl.

Significance of the Report:

The major motive of this study is to become familiar with the practical business world and to attain practical knowledge about the overall Banking, which is so much essential for each and every student to meet the extreme growing challenges in job market. This report finding’s will be beneficial for the management in attempting to improve the overall service quality and also to promote the company’s services to customers. So the study will be very useful for the top management in improving the customer satisfaction. Besides, it would be a great opportunity for me to attain practical knowledge on the various spheres of banking business. So this study is very significant for both the company and me.

Objectives of the Report:


Customer Satisfaction Analysis on General Banking Activities of Social Islami Bank Limited.


The Short objectives are:

  1. To analysis how people are happy with the service of SIBL.
  2. To analysis customer satisfaction on marketing mix of Social Islami Bank Limited.
  3. To analysis general banking activities of Social Islami Bank Limited.

Cash Section

The cash section of any branch plays very significant role in general banking department. Because, it deals with most liquid assets the SIBL Local Office Branch has an equipped cash section. This section receives cash from depositors and pay cash against cheque, draft, PO and pay in slip over the counter.

  1. Receiving Cash:

Any people who want to deposit money will fill up the deposit slip and give the form along with the money to the cash officer over the counter. The cash officer counts the cash and compares with the figure writer in the deposit slip. Then he put his signature on the slip along with the “cash received’ seal and records in the cash receive register book against A/C number.

At the end of the procedure, the cash officer passes the deposit slip to the counter section for posting purpose and delivers the duplicate slip to the clients.


Type of research

This is an Exploratory Research, which briefly reveals and analyzes the customer satisfaction related to “Customer satisfaction on General Banking of Social Islami Bank Limited”.

Sources of Information

I have collected the information/data from the following sources, which has helped me to make this report. The source is divided into two parts:

  1. a) Primary Source
  2. b) Secondary Source
  3. The “Primary Sources” are as follows:

Data collected for the first time is called primary data. The methods used to collect such data include:

  • Face-to-face conversation with the respective officers and staffs of the Branch.
  • Informal conversation with the clients.
  • Practical work exposures from the different desks of the departments of the Branch covered.
  1. The “Secondary Sources” of data and information are:

The secondary data sources are annual reports, manuals, and brochures of Social Islami Bank limited and different publications of Bank. To identify the implementation, supervision, monitoring and repayment practice- interview with the employee and extensive study of the existing files.

Methods used to collect secondary data include:

  • Annual Report of Social Islami Bank Ltd and


A close ended questionnaire was used for my study. For closed ended questionnaire, Multiplechoice questions were used where the respondent choose one option among several possible alternatives.


General banking department aids in taking deposits and simultaneously provides some additional services. General banking is the front side banking services department. It provides those customers who come frequently and those customers who come one time in banking for enjoying additional services. In some general banking activities, there is no relation between banker and customers who will take only one service from bank. On the other hand, there are some customers with who banks are doing its business frequently. SIBL (Social Islami Bank Limited) General banking is divided into five sections these are:

1.Account Opening activities.

2.Bills and Clearing activities.

3.Cash activities.

4.Remittance activities.

5.Closing of an Account activities.


Account Opening Section:

Under this section, SIBL officer opens different types of account on the request of clients. The procedure of opening account is given below.

Procedure and rules to open a new account:

Mudaraba Saving Account (Code No: 134)

Before opening of a savings Bank Account the following formalities must the completed by the customers:

  1. Account opening From: To be filled in and signed by each account holder.
  2. Latest passport size photograph (2 copies) for each account holder attested by the introducer.
  3. Account payee cheque in favor of the account holder or cash deposit.
  4. Copy of Voter identity card/Ward Commissioner Certificate.
  5. Introduction of account holder (Mandatory): To be signed by introducer with ID and account number.
  6. 1 (One) copy of nominee’s photograph (attested by the account holder).
  7. Copy of voter identity card (nominee).
  8. Initial deposit TK. 1000 (One thousand taka only)

After fulfilling above formalities, open an account for the client and provide the customer with a deposit book and a checkbook.

Al-Wadiah Current account (Individual) – (Code No: 133)

  1. Account opening From: To be filled in and signed by each account holder.
  2. Latest passport size photograph (2 copies) for each account holder attested by the introducer.
  3. Attested copy of valid Trade license.
  4. Attested copy of passport of the proprietor.
  5. Company seal and TIN (Tax identification Number) Certificate.
  6. Copy of Voter identity card.
  7. Introduction of account holder (Mandatory): To be signed by introducer with ID and account number.
  8. 1 copy of nominee’s photograph (attested by the account holder).

Mudaraba Special Notice Account (Code No: 136)

  1. Any company, business entity, debt of the govt. organization and trust or any person can open this account.
  2. This account is operated under Mudaraba principle.
  3. Any amount can be withdrawn or transferred to al Wadiah current account or any other accounts after placing a notice of seven days.
  4. Cheque books are provided for these accounts.
  5. The profit rate is comparatively lower.

Deposits Account by SIBL:

Mudaraba Saving Deposits (MSD) (Code No: 134)

These are profit bearing deposit account. The drawings are restricted in respect of both the amount of withdrawal and the frequency there of so the payment of interest does not become any compensating for the banker. Some time the restrictions are ignored against the depositor’s written confirmation to forgo his claim for interest on the total balance for the whole month of withdrawal.

Some Special Saving Scheme

  1. Mudaraba Hajj Saving Scheme
  2. Mudaraba Education Scheme
  3. Mudaraba Millionaire Scheme

People of Bangladesh are the followers of Islam. They are mostly interested to make interest free deposits. Taking these facts into consideration SIBL a joint venture Islami bank introduced a monthly installment based “Mudaraba Millionaire Scheme”


Mudaraba Monthly Profit Deposit Scheme

The features of this scheme are as follows:

  1. Tk. 1, 00,000, 1,10,000, 1,20,000 or 1,25,000 or any amount multiple can be deposited under this scheme.
  2. The duration of the amount should be for Five years.
  3. Profits shall be distributed under this scheme as follows:
  • 1,00,000 Tk. 900 (Provisional)
  • 1,10,000 Tk. 1000 (Provisional)
  • 1,20,000 Tk. 1100 (Provisional )
  • 1,25,000 Tk. 1150 (Provisional)

4.The payable profit will become due after 1 month of deposit. But the amount will be deposited to account in the last week of the month.

5.Generally, a depositor cannot withdraw the amount before 5 years. But in unavoidable circumstance the depositor can withdraw the amount and in that case the depositor will have to submit the duly filled application form of the scheme.

Mudaraba Term Deposit

The term and condition Mudarabah is same as general Mudarabah excepting one that under this arrangement the owner of the fund agrees keep the deposit remain with the Islami bank for a particular time period (3 months/6 months).

Al-Wadiah Current Deposit (Code No: 133)

  1. AL WADIAH Current Deposit A/c’s are opened proper introduction with minimum initial deposit fixed by the Bank.
  2. AL WADIAH Deposit is accepted on AL WADIAH principles which mean al Amanat with permission to use. According to this principle Bank can use the fund of the account along with other funds as per Shariah at bank’s own risk. Account holders will not share any profit/loss.

III. The Law and regulation of Bangladesh, usual customs and procedures common to banks in Bangladesh including Islamic Banking Principles shall apply to and govern the conduct of account opened with the Bank.

Cash Waqf Certificate

  1. In this case the waqf concept of Islam has been borrowed by the Islami bank for deposit mobilization purpose.
  2. The nature of account is donation type.

iii. The accountholder operate the account for benevolent purposes.

  1. He can withdraw any amount from the account for personal use or consumption.
  2. Highest weightage is given to this account in distributing profit.

Bills and Clearing Section

SIBL Local Office branch performs the bill clearing function through Local office. SIBL Local office acts as the agent of all SIBL branches for the clearing house of the Bangladesh Bank. There are two types of cheque which are-

  1. Inward clearing cheque
  2. Outward clearing cheque

A.Inward Cheque

Inward cheques are those ones drawn the respective branch which have been presented on other banks and will be cleared/honored through the clearing house of Bangladesh Bank. For example the cheque drawn on SIBL Local Office Branch then the cheque is called inward cheque of SIBL Local Office Branch.

B.Outward Cheques:

Outward cheques are those ones drawn on other bank branches which are presented on the concerned branch for collection through clearing house of Bangladesh Bank. These cheques are called outward cheques.

C.Outward bills for Collection (OBC):

By OBC, we mean that those cheques drawn on other which are not within the same clearing house. Officer gives OBC seal on this type of cheques and later sends a letter to the manager of the branch of the some bank located in the branch on which cheque has been drawn. After collection of that bill branch advices the concerned branch in which cheques has been presented to credit the customer account through Inter Branch Credit Advice (IBCA).

In absence of the branch of the same bank, officer sends letter to manager of the bank on which the cheques is drawn. That bank will send pay order in the name of the branch. This is the procedure of OBC mechanism.

  1. Clearing:

The scheduled banks clear the cheques drawn upon one another through the clearing house. SIBL is a scheduled Bank. According to the Article 37 (2) of Bangladesh Bank Order, 1972, the banks which are the member of the clearinghouse are called as Scheduled Banks. This is an arrangement by the central bank where everyday the representative of the member banks gathers to clear the  cheques. The place where the banks meet and settle their dues is called the clearinghouse. The clearinghouse sits for two times a working day.

  1. Receiving Cheques for Collection:

In SIBL, cheques of its customers are received for collection from other banks. In case of receiving cheques, following points should be checked very carefully.

  1. The cheques should not carry a date older than the receiving date for more than 6 months. In that case it will be a ‘stale cheque’ and it will not be allowed for collection. Again the date of the cheque should not be more than 1 day’s forward than the receiving date.
  2. The amount in figures and words in both sides of the pay-in-slip should be same and it should also be same with the amount mentioned in figures and words in the cheque.
  3. The name mentioned in the cheque should be some in both sildes of the pay-in-slip and it should be the same with the name mentioned in the cheque.
  4. The cheque must be crossed.

Remittance of Funds

Remittance of funds is ancillary services of SIBL. It aids to remit fund from one place to another place on behalf of its customers as well as non-customers of bank .SIBL has its branches in the major cities of the country and therefore, it serves as one of the best mediums for remittance of funds from one place to another.

The main instruments used by SIBL, Local Office Branch for remittance of funds.

  1. Pay Order/ Banker’s check.
  2. Demand Draft.
  3. Telegraphic Transfer.

Pay Order/ Banker’s check

The pay order is an instrument issued by bank, instructing itself a certain amount of money mentioned in the instrument taking amount of money and commission when it is presented in bank.

Only the branch of the bank that has issued it will make the payment of pay order. The banker’s cheque must come the branch for payment wherever it is presented.

Issuing of Pay Order:

The procedures for issuing a Pay Order are as follows:

Deposit money by the customer along with application form.

  1. Give necessary entry in the bills payable (Pay Order) register where payee’s name, date, Po no, etc is mentioned.
  2. Prepared the instrument.
  3. After scrutinizing and approval of the instrument by the authority, it is delivered to customer. Signature of customer is taken on the counterpart.

Cancellation of a Pay Order:

If a buyer wants to cancel it, he should submit a letter of instrument in this regard and also return the instrument.

Bank Draft:

The person intending to remit the money through a pay order has to deposit the money to be remitted with the commission which the banker charges for its services. The amount of commission depends on the amount to be remitted. On issue of the pay order, the remitter does not remain a party to the instrument 1) Drawer branch 2) Drawer branch 3) Payee. This is treated as the current liability of the bank as the banker on the presentation of the instrument should pay the money. The banker event on receiving instructions from the remitter cannot stop the payment of the instrument. Stop payment can be done in the following cases:

  1. a) Loss of draft before endorsement in this case, “Draft reported to be lost payee’s endorsement requires verification” is marked.
  2. b) Loss of draft after endorsement: In this case, the branch first satisfies itself about the claimant and the endorsement in his favor.


A commission of 0.15% is taken on the draft value & Tk.50 is taken as postal charge.

Closing of an Account

For two reasons, one can be closed. One is by banker and other is by the customer.

  1. By banker: If any customer doesn’t maintain any transaction within six years and the A/C balance becomes lower than the minimum balance, banker has the right to close an a/C.
  2. By customer: If the customer wants to close his A/C, he writes an application to the manager urging him to close his close his A/C.

Different procedures are followed in cash of different types of A/C to close. Fixed deposit A/C is closed after the termination of the period.

Closing process for current & saving A/C:

  1. After receiving customer’s application the officer verifies the balance of the A/C.
  2. He then calculates interest and other charges accumulated on the A/C.
  3. If it bears a credit balance, the officer writes advice voucher. He gives necessary accounting entries post to accounts section.
  4. The balance is returned to the customer. And lastly the A/C is closed.

But in practice, normally the customers don’t close A/C willingly. At times, customers don’t maintain any transaction for long time. Is this situation at first, the A/C becomes dormant and ultimately it is closed by the bank.

SIBL SWOT Analysis:


Strength means the positive internal factor that a company can use to accomplish it mission, goals, & objectives. They might include:

  • Customer satisfaction
  • Service quality
  • Pricing effectiveness
  • Special skill & knowledge
  • Positive public image.


Weakness means the negative internal factors that inhibit or restrict the accomplishment of company’s mission goal & objectives. They might include:

  • Market share
  • Shortage of skill work force.
  • SIBL has lack of ATM booth.


 Opportunities are the external option that a firm can exploit to accomplish its mission.

 They might include:

  • Sales force effectiveness
  • Customer retention
  • Innovation effectiveness


Threats are negative external forces that restrict a company’s ability to achieve its mission, goal, & objectives. Threat to the business can take variety type of forms such as:

  • Promotion effectiveness
  • Competitors entering the market.
  • Economic recession
  • Technological advantages
  • Customer Satisfaction:

Customer satisfaction is the extent to which a product or service’s perceived performance matches a buyer’s expectations. If the product or service’s performance falls short of expectations, the buyer is dissatisfied. If performance matches or exceeds expectations, the buyer is satisfied or delighted.

Expectations are based on customers past buying experiences, the opinion of friends and associates, and marketer and competitor information and promises. Marketer must be careful to set the right level of expectations. If they set expectations too low, they may satisfy those who buy but fail to attract enough buyers. In contrast, if they raise expectations too high buyers are likely to be disappointed. Dissatisfaction can arise either from a decrease in product and service quality or from an increase in customer expectations. In either case, it presents an opportunity for companies that can deliver superior customer value and satisfaction.

Today’s most successful companies are rising expectations—and delivering quality product. Such companies track their customers’ expectations, perceived company performance, and customer satisfaction. Highly satisfied customers produce several benefits for the company. Satisfied customers are fewer prices sensitive, remain customers for a longer period, and talk favorably to others about the company and its products & services.


Marketing Mix:

  1. Product: Product means customer solution. SIBL introduces some products for their respective customers
  2. Price: Price means customer cost for the products. SIBL’s pricing system is also satisfactory.
  3. Place: Place means convenience. Its channels, coverage’s is also satisfactory.
  4. Promotion: Promotion refers to communication. There is a lacking for the advertisement activities.

Target Customers:

The bank has a clear idea about the customers it wants to serve. Without fulfill their needs the bank has no functions. So to collect the target customer’s banks can run properly.

  • Market Segmentation- the process of dividing a market into distinct groups of buyers with different needs, characteristics or behavior.
  • Target Marketing- the process of evaluating each market segments, attractiveness and selecting one or more segments to enter.
  • Market Positioning- Occupying a clear, distinctive and desirable place relative to competing products in the minds of target customers.

 7 p’s of Service Marketing:

 Product: Any goods or services which can be offered to a market for attention, use or consumption that might satisfy a want is known as a product.

  • Price: The amount of money customers have to pay to obtain the product.
  • Place: The place is where the product or services are offered to the customers.
  • Promotion: Activities that communicate the merits of the product & persuade target customers to buy it.
  • People: People are those who create demand for a products or services & someone who fulfill his or her demand.
  • Physical Evidence: It is the environment in which the service is delivered & where the firm & customer interact & tangible components that facilitate performance or communication of the service.
  • Process: It is the actual procedures and flow of activities by which the service is delivered the service delivery & operating system.

Survey outcomes about SIBL product

  1. Nature of customers:

40% customers have Mudaraba Savings Deposit, 30% customers have Al-Wadia Current Deposit, 13% customers have Mudaraba Notice Deposit, and 7% customers have Mudaraba Term Deposit and 10% customers have others. Here I have seen that most of the customers prefer savings and current deposits than other accounts.

  1. Customer Opinion about brand name “Social Islami Bank Limited”:

SIBL should create the likeability towards the customers not only to the existing but also towards the potentials.9 respondents (30%) preferred brand name and fully satisfied while another 4 (13%) are dissatisfied with this. Furthermore 57% respondents have shown moderate Opinion about the brand name. This actually appraises the bank.

  1. Reason for opening an account:

Around 7% with (2) respondents said that they have chosen the bank because it is has a good reputation in the community such as “Shariah-based Islami Bank”. 40% (12) respondents have said that it is a reliable bank and provide better service and 23% said they prefer for convenient place. 13% and 1 0% respondents choose the bank because of attractive rate and types of accounts offered respectively.

  1. Respondent opinion about fees and service charges:

 Product and service charge is a sensitive issue in banking sector. 60% respondents said this bank charge moderate value toward the customers. Moreover 33% respondents were against the arguments because they felt that bank charge little bit higher. Majority was medium value which they are able to pay to get the product or service and rest of 7% respondents experienced that SIBL demand lower charges.

  1. Employee opinion about research and development:

50% of respondents of this branch said SIBL do not introduce new product for the actual and potential customers because they don’t have R&D department and about 17% respondents found some scheme of loan product against the assets.33% respondents have no reaction about the arguments.

  1. Customer Opinion about their SLBL promotional Activity:

36% respondents expressed fully dissatisfaction about the promotional program of SIBL. Opinion came from 33% respondents who are satisfied their current advertisement activity and 17% respondent who are fully satisfied too. 7% respondents were neutral about the question. 7% respondent expressed dissatisfaction about promotional activity.

  1. SIBL employees are very cooperative and helpful:

SIBL is operating the business in a very expert style with energetic and well behave employees. They are very serious to fulfill customer Opinion. Again, they are very cooperative to their customers as well. They always try to help the customers at their best. Respondents 40% and 30% believe that the employees are very helpful and accommodating. On the other hand 7% (2) respondents said against it. But overall, it is a very positive sign that only 20% respondent said negative about this issue. This is very much positive for the bank.

  1. Customer opinion about their attention:

Despite of their fewer advertisements, they have reached to its target customers quite successfully. By the analysis almost 66% (20) respondents knew about the bank through its current client. And rest 34% respondents have seen the different media advertisements and billboards.

  1. Customer opinion about SIBL place:

36% respondents said SIBL have good with the locations. May be this is because it is a foreign exchange and Investment based site as well as a Shariah-based bank. That’s the reason people are happy with having transaction over here. They are having class services and up to date facilities, good communication facilities. On the other hand, 54% respondents said against with this issue and 10% respondents said no comments.

  1. SIBL has a very good documentation process:

 SIBL has very good traditional documentation process. They preserved all the banking documents in a very well and presently way. Thus those are found any time when those are needed. 16 respondents (53%) said agree with the statement. That they never seen any mistakes or faced any problems regarding the documentation process. 5 respondents (17%) give a neutral opinion. This is not positively marked but not negative as well. On the other hand 30% respondent said negative with this issue.

Findings on general banking activities:

Social Islami Bank is entirely a new banking system which is adopting for a better change in social economics condition and to make the banking function dynamic. By the construction of capital production employment opportunities Investment and strong economical structure this branch I performing major role to meet up the demand of sociality.

  1. The Clients of SIBL prefer to maintain Savings Account.
  2. Social Islami Bank Limited has very good traditional documentation process for general banking.
  3. Customers like the brand name of Social Islami Bank Ltd. And fully satisfied with this.
  4. Customers like for the superior service.
  5. Customers like for the moderate service charge.

Major Findings on the research in client satisfaction:

  1. Social Islami Bank Ltd. has very good traditional documentation process. Although they are not following any high technology or so but they having a very good record of the documents and filing system also the serial is been properly maintained too.
  2. Majority of customers are an account holder of this bank because they have the opportunity to choose various types of Shariah based Accounts. In this branch customers prefer savings and current deposits and other accounts.
  3. Customers like the brand name of Social Islami Bank Ltd. and fully satisfied with this.
  4. This bank charges moderate value toward the customers. Majority are found to be medium value which they are able to pay to get the product or service. Moreover credit card charge also reasonable and has some clear conditions.
  5. People are satisfied about the location of this branch and this place is suitable for financial transaction.
  6. Social Islami Bank Ltd.. is not creative on their exterior design. Majority of respondent said that bank is not good in terms of it’s the exterior decoration.
  7. The bank is good in terms of its interior design. But there is no enough space inside the bank to move freely. GB (general banking) has such small space that it is not enough for attracting the customers.
  8. SIBL customers could known about the bank through its current clients because lack of advertisement they could not get enough information about the bank. Social Islami Bank Ltd. invests little bit for promotional program.
  9. Social Islami Bank Ltd. is operating the business in a very expert style with energetic and well behave employees. They are very respectful to the Bangladesh Bank’s policies and very much serious to fulfill customer satisfaction. Again, they are very cooperative to their customers as well. They always try to help the customers at their best.
  1. Social Islami Bank Ltd. is a reliable bank and provides better service to its customers.

The main objectives of the world famous and successful banking organizations are making of profit through addressing the clients time to time with new paces of service instruments. However my little experience carnal the through this internship. I had several thank discussions with the clients and officials, which has helped me to know about the findings and draw and the followings recommendations:

  • To make the Shariah inspection strengthens regarding all Investment of the bank.
  • Official at branch level should inspection strengthen regarding all Investment of the bank.
  • This branch provides advances towards the true entrepreneur with reconsidering conventional system of security and collateral, moreover, the whole process should be completed within an acceptable time.
  • Always should monitor the performance of its competitors.
  • Evaluate customers need from their perspective and explain logically the short comings.
  • Use of effective management information systems.
  • Investment decision make faster.
  • The management should consider revise the remuneration package in order to attract quality human resource.


SIBL is running successfully and for its good deposit performance the bank occupies 2nd position in the Investment Banking Sector. Taken all in all, it can be safely said that SIBL action program is directed towards development of an authentic participatory economy beyond market economy.

The family empowerment credit program of Social Islami Bank is gaining ground at the grass root field level in Bangladesh. Family empowerment micro credit and micro enterprises program must be designed in a manner so as to make a) finance b) production c) marketing d) trading e) local specific survey and research as well as moral integrity in one package.

In SIBL approach, credit conveys the totality in life and clearly linked to social context and cultural setting in conformity with Shariah. There is a better chance in provision for social subsidy. Desecularizing credit may lead to rewriting new economics.It is thus felt that the linking credit to social goals and assignments will have far-reaching theoretical implications for development of an alternative concept of new theories of income, output and employment. This bank expresses its sincere thanks to the government of the People’s Republic of Bangladesh and Bangladesh Bank for their co-operation and valuable guidance to the bank. SIBL also takes this opportunity to their valued clients, patrons, well-wishers, correspondents and the shareholders for their support and patronization extended during the year under review. SIBL also records its appreciation for the services rendered by the executives and the members of the staff for the stability and growth of the bank.