Customer Satisfaction of EXIM Bank Limited

This report covers organizational structure, background, product function, customer satisfaction and the performance of the Bank, here main focus to analyze the customer satisfaction of EXIM Bank Limited. Other objectives are to know about Islamic banking and their operation and to get a brief idea about deposit product. Here briefly explain about operational procedure export and import business. Finally identify major strength and weakness of EXIM Bank.

Background of Report

The products and services that are sold in the most favourable prices can be an initial step of the firm in obtaining the trust and be included in the top list of the customers. However because of the tight competition of various services in EXIM bank, the perception of the customers and potential customer are also divided according to the services that they want to achieve. In addition, the impact of the economic problems are financial crunches in EXIM bank create a great challenge for the bank. With all the challenges that are ahead on EXIM bank, how will it gather the customer satisfaction?

The finding of the study will be useful for me readers to set knowledge about the topic and EXIM bank.

Objective of the report

There are two objective of the report, such as: Broad Objective and Specific Objective

Broad Objective:

• To gain practical experience in job field.
• To fulfil academic requirement.

Specific Objective:

• To analyze the customer satisfaction of EXIM Bank Ltd.

• To get an idea about the performance of EXIM Bank Ltd.
• To know about Islamic banking and their operation.
• To get a brief idea about their deposit product.
• To get a brief idea about operational procedure export & import business.
• To get idea about us management and organization structure.
• To know the importance of foreign trade in Bangladesh.
• To identify major strength and weakness of EXIM Bank Ltd.
• To know the service provide by the bank.
• Maintaining corporate and business ethics.
• To the practical knowledge in banking sector.

Methodology of the study:

Sources of Information:

The data collected from two sources:

• Primary Sources
• Secondary Sources

Primary Sources:

• By interviewing clients of the Bank.

• Face to face conversation with the employee.
• Appointment with the top official of the bank.
• Personal experience gained by observing the different task of bank.
• Personal investigation with bankers.

Secondary Sources:

• Annual report of EXIM Bank Ltd.

• PROSPECTUS published by EXIM Bank.
• Publication of newspaper.
• Gather knowledge about the bank from their banking website.

Contribution of Banking Sector in an Economy: 

Mobilization of Savings

The banks encourage thriftiness and save more among people. The men can be free of the future anxiety when they do not have income on account of savings. Since banks provide attractive interest on saving and fixed deposits, people are encouraged to save more. The bank, therefore, has made it possible to collect small savings from nook and corners of the country. Besides, the resources are mobilized by banks even by selling shares. Since, bank deposit is most liquid; people can promptly receive money in crisis.

Capital Formation

The capital formation is crucial for the economic development of a country. The less developed countries like Nepal are suffering from low capital formation. The bank collects idle money from people. These money are channelled by banks to the individuals, businesses and government for productive investments. This increases capital formation by increasing productive investments. This, in turn, raises the level of employment, income and standard of living.

Monetization of Economy

The spread of bank branches to the rural areas increases the banking habit of people. People keep their excess money in banks and withdraw at the time of need. This leads to the monetization of rural areas. It is easier to implement government monetary and fiscal policies effectively in the monetized areas. The effectiveness of these policies, in turn, helps government to maintain price stability and promote economic growth and employment.

Promotion of Employment

The unemployment is a serious problem, which may result into severe social, political and economic consequences. In Nepal, pressure of population on land is high. A large share of labour force is unemployed and under-employed. The bank helps to relieve the economy from the pressure of unemployment. The bank provides loans to businessmen, entrepreneurs and farmers in different forms. Likewise, the banks also make direct investments in different sectors. These all increase the economic activities and promote employment opportunities.

Upliftment of Poor

The banks make available loans to rural people on reasonable rate of interest. This helps farmers to undertake agricultural and non-agricultural works. The Small Farmers Development Project, Small Sector Development Programme, Small and Cottage Industries Project, Micro-credit Projects have been implemented by Agricultural Development Bank and commercial bank in Nepal for the upliftment of the poor. This has helped to increase the employment level of income and level of living of the poor. Similarly, the rural development banks have been established for the upliftment of the poor.

Promotion of Entrepreneurship

The role of private sector is crucial in accelerating the pace of economic growth. The banks increase the participation of the private sector in economic development by making available the loans easily on reasonable rate of interest. According to Hugh T. Patrick “The expansion of financial sector encourages entrepreneurs to make investments by promoting entrepreneurship”. In Japan, the expansion of banks had led to the promotion of entrepreneurship. This had made it easier to initiate economic development. In Nepal, lack of entrepreneurship has been a great obstacle to development. Hence, this role of bank cannot be underestimated. Besides, the top management of banks can serve as the entrepreneurs in industrial

Rapid Economic Development

The banks can contribute substantially in economic development. The rapid industrialization in America, Japan, Germany and France was made possible by banks. According to Per Jacobson, “Economic growth can be compared with the construction of a good House with stability at its foundation. We bankers have a key responsibility in the building task for economic growth”.

The banks make available loans of different periods to agriculture, industry and trade. They make direct investments in industrial sectors. They provide industrial, agricultural and commercial consultancy. Likewise, they discount bills, sale bills, remit funds, make available foreign exchange, issue guarantees and so on.

Agriculture, the backbone of the economy, trade, the engine of growth and industry, and the precondition to modernization are developed by the financial and technical assistance of the banking system. The development of these sectors accelerates the pace of economic growth. The economic growth, in turn leads to increase in national income and alleviation of poverty.

History of EXIM Bank Ltd.  

Export Import Bank of Bangladesh Limited was established in the year 1999 under the leadership of Late Mr. Shahjahan Kabir, Founder Chairman who had a long dream of floating a commercial bank which would contribute to the socio-economic development of our country. He had a long experience as a good banker. A group of highly qualified and successful entrepreneurs joined their hands with the founder chairman to materialize his dream. In deed, all of them proved themselves in their respective business as most successful star with their endeavor, intelligence, hard working and talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder who is an illuminated business tycoon in the Garments business in Bangladesh became the Honourable Chairman after the demise of the honourable founder chairman. He is also the chairman of Bangladesh Association of Banks (BAB). Under his leadership, BAB has emerged as an effective forum for exchanging views on problems being faced by the banking sector of Bangladesh and for formulating common policy guidelines in addressing such problems.

This Bank starts functioning from 3rd August, 1999 with its name as Bengal Export Import Bank Limited. On 16th November 1999, it was renamed as Export Import Bank of Bangladesh Limited with Mr. Alamgir Kabir as the Founder Advisor and Mr. Mohammad Lakiotullah as the Founder Managing Director respectively. Both of them have long experience in the financial sector of our country. By their pragmatic decision and management directives in the operational activities, this bank has earned a secured and distinctive position in the banking industry in terms of performance, growth, and excellent management. Under the leadership of Mr. Lakiotullah, the Bank has migrated all of its conventional banking operation into Shariah Based Islami Banking in the year July 2004.

Mr. Mohammed Lokiotullah left the Bank on 3rd June, 2007, there after Mr. Kazi Masihur Rahman became Managing Director on 4th June, 2007. Mr. Rahman served in the bank for next five years. Under his leadership, the bank has been placed on a state of the art centralized IT platform with two modern data centres where world renowned core banking software TEMENOS T24 is running along with some alternate delivery channels like ATMs and SMS banking.

On 25th August, 2011, Mr. Md. Fariduddin Ahmed has joined in the bank as Managing Director. With his long experience in the Shariah Based Islami banking in Bangladesh, EXIM Bank is going to take a new shape where IT-enable banking service will spread in the market.

Our Vision

The gist of our vision is ‘Together towards Tomorrow’. Export Import Bank of Bangladesh Limited believes in togetherness with its customers, in its march on the road to growth and progress with service. To achieve the desired goal, there will be pursuit of excellence at all stages with climate of continuous improvement, because, in Exim Bank, we believe, the line of excellence is never ending. Bank’s strategic plans and networking will strengthen is competitive edge over others in rapidly changing competitive environment. Its personalized quality services to the customers with trend of constant improvement will be the cornerstone to achieve our operational success.

Slogan

Corporate Slogan of EXIM Bank- “Together Towards Tomorrow”:

EXIM Bank Ltd. as the name implies, is not a new type of bank in some countries on the global, but is the first of its kind in Bangladesh. It believes in togetherness with its customers, in its march on the road to growth and progress with services. To achieve the desired goal, it has intention to pursuit of excellence at all stages with a climate of continuous improvement. Because it believes, the line of excellence is never ending. It also believes that its strategic plan and business networking will strengthen its competitive edge over in rapidly changing competitive environment. Its personalized quality services to the customers with the trend of constant improvement might be cornerstone to achieve its operational success.

Objective

As we, all know that Bangladesh is now an integral part of global market. As such, there is an urgent requirement for Bangladesh to place the traditional banking practices in harness with the global trades of a free market economy by following international banking customs, practices and standards. Today clients of a bank in Bangladesh are exposed as well as international markets. They have to stay update with their practice and standards to meet the demands of achieving harmony in the high standards of a free economy. Hence, by getting into both corporate and retail banking and rapid innovation and networking the bank believes that it can accomplish its goals.

EXIM Bank fully appreciates the importance and implication of the rapidly emerging competition in the banking and finance sector of Bangladesh. It intends financing its customer suited to his or her place in the market. In this regards EXIM Bank emphasizes in its employment the software aspects of human resource capability. It also emphasizes competence among its banking professional to cater to varied customer requirements to the modem time. The core objectives are:

• To carry on, transact, undertake and conduct the business of banking in all its branches and to transact and do all matters and things incidental thereto in Bangladesh and abroad.
• To receive, borrow or raise money on deposits, loan or otherwise, upon such terms as the Company may approve and to hive guarantees and indemnities in respect of all debts and contracts.
• To establish welfare oriented banking systems.
• To play a vital role in human development and employment generation.
• To invest money in such manner as may from time to time be thought proper.
• To carry on the business of buying and selling bullion, gold and other valuable assets.
• Provide defect free customer service
• Provide efficient service
• Maintenance of corporate and business ethics
• Make it stock superior and rewarding to the customer
• Sound capital base
• Enhance share holders’ wealth

Function

• The main task of EXIM bank is to accept deposit from various customers through various accounts.
• Provide loan on easy terms and condition.
• The bank invests its fund into profitable sector.
• It transfers money by demand draft, pay order, online, Telegram transfer.
• The bank is doing the transaction of bill exchanges, cheque etc on behalf of the clients.
• EXIM bank assists in the foreign exchange by issuing LC.
• Above all, EXIM bank helps the businessman financially by giving discount facility for bill of exchange and by providing the facility of letter of guarantee.

Corporate Social Responsibilities

At least 2% of our annual profit of every year is put aside for the foundation to conduct Corporate Social Responsibilities (CSR) activities. The mainstream CSR activities that are carried out through this foundation are:

• Healthcare service.
• Scholarship program for brilliant poor student
• Education Promotion Scheme
• Helping people affected by natural calamities
• Helping people in slum areas
• Donation to educational institutions to setup computer lab
• Beautification of Dhaka City

Prime Operational Area of the Bank

As a full-fledged Islamic bank in Bangladesh, EXIM Bank extended all Islamic banking services including wide range of saving and investment products, foreign exchange and ancillary services with the support of sophisticated IT and professional management. The investment portfolio of the bank comprises of diversified areas of business and industry sectors. The sectors include textiles, edible oil, ready-made garments, chemicals, cement, telecom, steel, real state and other service industry including general trade finance. The bank has given utmost importance to acquire quality assets and is committed to retain good customers through customer relationship management and financial counselling. At the same time efforts have been made to explore/induct new clients having good potentiality to diversify and create a well established structured investment portfolio and to minimize overall portfolio risk.

Core Banking Solution

Core banking solutions are banking applications on a platform enabling a phased, strategic approach that is intended to allow banks to improve operations, reduce costs, and be prepared for growth. Implementing a modular, component-based enterprise solution facilitates integration with a bank’s existing technologies. An overall service-oriented-architecture helps banks reduce the risk that can result from manual data entry and out-of-date information, increases management information and review, and avoids the potential disruption to business caused by replacing entire systems.

Core banking solutions is new terminology frequently used in banking circles. The advancement in technology, especially Internet and information technology has led to new ways of doing business in banking. These technologies have cut down time, working simultaneously on different issues and increasing efficiency. The platform where communication technology and information technology are merged to suit core needs of banking is known as core banking solutions. Here, computer software is developed to perform core operations of banking like recording of transactions, profit calculations on loans and deposits, customer records, balance of payments and withdrawal. This software is installed at different branches of bank and then interconnected by means of communication lines like satellite, internet etc. It allows the user (customers) to operate accounts from any branch if it has installed core banking solutions. This new platform has changed the way banks are working.

EXIM Bank uses the Islamic Banking Solution of Tremens T24 as core banking solution.

MARKETING MIX
Marketing Mix is the combination of the elements of marketing and what roles each element plays in promoting your products and services and delivering those products and services to your customers.

These four P’s are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that centre the four P’s on the customers in the target market in order to create perceived value and generate a positive response.

Marketing Mix Analysis of EXIM Bank Ltd.:

The bank managed by a team of professional executives and officials having profound banking knowledge and experience in different sectors management and operation of banking. During the short span of time EXIM Bank Ltd. Has introduced a good number of attractive deposit products to broaden the resources base and also investment products to deploy the deposit products. EXIM Bank Ltd. Always tries to introduce a wide variety of attractive deposit, investment and service for suiting taste and requirement of the client.

PRODUCTS: The banks primarily deal in services and therefore, the formulation of product mix is required to be in the face of changing business environment conditions.

Export Import Bank of Bangladesh Limited launched several financial products and services since its inception. Among them are Monthly Income scheme, Monthly Savings Scheme, Super Savings Scheme, Education Savings Scheme, Multiples Savings Scheme, Hajj Deposit Smart Saver Scheme. All of these have received wide acceptance among the people.

Different kinds of products are described below:

ACCOUNTS:

Savings Account:

Mudaraba Saving Deposit: Mudaraba savings account is opened under the Mudaraba principal of Islami Shariah. Under the above principal the clients is the Shaheb-Al Mal and the Bank is Mudarib. Mudaraba Saving’s accounts are mainly meant for Non-Trading customers who have some potential saving with small no. of transactions taking place. More than one person can open and operate a Mudaraba savings account. A guardian on behalf of a minor can open a Mudaraba Savings A/C. In which case a declaration stating the date of birth of the minor should be obtained from the guardian. OD is not allowed for SB account. The account provides expected half-yearly provisional profit.

Main Feature:

• Attractive provisional rate of profit
• Minimum initial deposit is Tk.1000.00
• Half-Yearly account statement
• Debit card Facility with limited withdrawal
• Free ATM Cash withdrawal from all ATM of EXIM Bank
• SMS Banking for statement/Balance checking
• Salary crediting facility
• Cheque book facility
• Fund transfer facility
• Profit will be calculated on monthly basis

Required Documents:

• Completed account opening form duly signed by account holder
• 02 Copies passport size photographs of every operators duly attested by introducer
• Photographs of National ID Card/Passport/Chairman certificates
• Introducer signature
• Passport size photographs and signature of Nominee

Terms and conditions:

• Account will be operated as per Mudaraba principals.
• At least 65% of investment income will be distributed among the Mudaraba Depositors as per weight age allocated for each accounts.

Current Account:

Al- Wadia Current Deposit: Al-Wadiah Current Account follows the Principle of Islami Shariah wherein the bank is deemed as a keeper and trustee of funds as Al-Amana (on Trust). This deposit that operates by taking permission from depositors would be taken to use their fund according to Shariah Principle and depositors would not receive any kind of profit. As such the bank is under obligation to return the entire money on demand by the customer. The account is not time barred i.e. Account Holder can withdraw money as many numbers of times as he wishes in a working day.

Main Feature:

• Halal way or without Riba (interest or usury) transaction
• Unlimited deposit or withdrawal
• No profit will be given
• Cheque book facilities
• ATM Card
• Free online transaction
• No Over Draft will be allowed in the account
• SMS banking service includes balance inquires/Mini-statement by mobile phone.

Required Documents:

• Account opening duly filled up and signed by account holder
• 02 Copies passport size photographs of every operators duly attested by introducer
• Photographs of National ID Card/Passport/Chairman certificates
• Introducer signature

Terms and Condition:

• Bank may use the fund at its own discretion with prior permission of the account holder and without any risk to the account holder
• Customer may be withdraw the entire (or part of) fund without any notice to the bank.

Term Deposit:

• Mudaraba Term Deposit Receipt: Mudaraba Term Deposit Receipt (MTDR) account is opened under the Mudaraba (Profit Sharing) principal of Islami Shariah. The minimum amount of MTDR, rate, renewal procedure and premature encashment rules determined & circulate by our Head Office from time to time. These deposits are repayable subject to a period of notice and hence known as time deposit or time liabilities meaning thereby that these are withdraw able subject to a period of notice and not on demand.

Different period of MTDR products:

• MTDR for 01 month
• MTDR for 02 months
• MTDR for 03 months
• MTDR for 06 months
• MTDR for 12 months
• MTDR for 24 months
• MTDR for 36 months

Main Features of MTDR:

• Any adult person (individually or jointly) having sound mind or any institution/organization can open MTDR Account with any branch of the Bank.
• Minimum depositing amount Tk.10000.00 (ten thousand) and above but multiple of Tk.100.00 (one hundred)
• One or more account can be opened in the same name at the same branch of the bank
• Deposit of MTDR Account will bear the following weight age:

Profit will be calculated on daily basis on provisional rate of profit and also applied on due date of maturity

• Investment against lien of such receipt may be allowed up to 90% of deposited amount subject to normal terms and conditions of investment of the bank.

Terms and Conditions:

Normally, deposited amount of MTDR is not cashable before maturity. If any depositors intend to encase his/her MTDR Receipt before maturity due to certain unavoidable circumstances, the following terms and conditions will come into force:

• No profit shall be allowed for premature encashment within 01(one) month
• If the account is enchased after completion of any tenure but before maturity, depositors will be entitled to receive the benefit at the provisional rate of profit of Mudaraba Savings Account.
• The provisional rate of profit of Mudaraba Savings Account will treat the provisional rate of profit, which was prevailed at the time of opening the MTDR account.

Mudaraba Education Scheme: The most gratifying experience for parents is proper education of their children. Educational expense is rapidly increasing and therefore appropriate planning needs to be done by all parents. EXIM Bank offers “Education Savings Scheme” to assist in financial planning well ahead in time for the children’s higher education. Deposit of Tk 25,000/- and multiples thereof at a time will be accepted under the scheme. The instrument shall be issued for 7 years, 10 years or 20 years terms.

Deposit schemes:

• Mudaraba Super Saving Scheme:

Objectives of the Scheme: Savings help to build up capital and capital is the principal source of business investment in a country. That is why savings is treated as the very foundation of development. To create more awareness and motivate people to save, EXIM Bank offers super savings scheme.

Terms and Conditions of the Scheme:

• Any individual, company, educational institution, government organization, NGO, trust, society etc. may invest their savings under this scheme.
• The deposit can be made in multiples of Tk. 5,000.00.
• Any customer can open more than one account in a branch in his/her name or in joint names. A Deposit Receipt will be issued at the time of opening the account.
• The Deposit will approximately be double in 6 (six) years.
• Savings will be treated as projected and it will be adjusted after the declaration of profit at the end of the year. The weight age of deposit will be 1.17.
• Not less than 65% of investment income shall be distributed among the Mudaraba Deposit holders as per weight age of deposit.

Premature encashment of the scheme:

• In case of premature encashment before 1 year no profit shall be paid.
• In case of premature encashment after 1 year but before 3 years profit shall be paid at Savings Rate plus 0.75%.
• In case of premature encashment after 3 years but before maturity profit shall be paid at Savings Rate plus 1.00%.

In case of any unexpected situation:

• In case of death of depositor before the term, the amount will be given to the nominee according to the rules of premature encashment. In the absence of nominee, the heirs/ successors will be paid as per succession certificate.
• In case of issuing duplicate receipt the rules of issuing a duplicate receipt of Term Deposit will be applicable.
• The nominee may, at his option continue the scheme for the full term.

Quard  facility under the scheme:

• A depositor can avail quad up to 90% of the deposit under this scheme.

Additional Terms and Conditions

• Bank reserves the right to change the weight age of deposit & percentage of distribution of Investment Income.
• At the time of payment, Income Tax shall be deducted upon profit.

Mudaraba Monthly Saving Scheme (Money Grower):

Objectives of the Scheme: A monthly savings scheme. Secure your future with ease. A small savings of today will provide you comfort tomorrow.

Savings Period and Monthly Instalment Rate:

• The savings period is for 5, 8, 10 or 12 years.
• Monthly instalment is Tk. 500/-, 1000/-, 2000/- or 5000/-.
• Not less than 65% of investment income shall be distributed among the Mudaraba Depositors as per weight age. The deposit will bear weight age 1.16, 1.17, 1.18, 1.19 respectively.
• Bank reserves the right to change the weight age of deposit & percentage of distribution of Investment Income.

Monthly Instalment Deposit:

• The savings amount is to be deposited within the 10^th of every month. In case of holidays the deposit amount is to be made on the following day.
• The deposits may also be made in advance.
• The depositor can have a separate account in the bank from which a standing instruction can be given to transfer the monthly deposit to the scheme account.
• If the depositor fails to make the monthly instalment in time, then 5% on overdue instalment amount will be charged. The charged amount to be added with the following month(s) instalment and the lowest charge will be Tk. 10/- (Taka Ten).

Withdrawal:

• Generally, withdrawal is not advised before a 5 (five)-year term, but if it is withdrawn before the above term, profit will be paid at savings rate. However, no profit will be paid if the deposit is withdrawn within 1 (one) year of opening the account.
• In case the depositor wishes to withdraw between the 5, 8, 10 or 12 years period then full profit will be paid for a completed term and savings rate will be applicable for the fractional period.

Quard Advantage:

After 3 (three) years of savings in this scheme the depositor (if adult) is eligible for a quard up to 90% of his/her deposited amount. In that case, profit rates on the quard will be applicable as per prevailing rate at that time.

Reasons for disqualification from this scheme:

• If the depositor fails to pay 3 (three) instalments in a row, then he/she will be disqualified from this scheme and profit will be applicable as mentioned in withdrawal clause.
• If a depositor fails to pay 5 (five) instalments in a row after completion of any one of these terms, then the Bank reserves the right to close the account and profit will be paid as mentioned in withdrawal clause.
• In case of death of the depositor the scheme will cease to function. The amount will be handed over to the nominee of the deceased depositor. In case of absence of the nominee, the bank will hand over the accumulated amount to the successor of the deceased.

Rules:

• A form has to be filled at the time of opening the account. Attested photographs are advised.
• The depositor can select any of the installment amounts which cannot be subsequently changed.
• In case of minors, the guardians may open and supervise the account in his favor.
• A single person can open more than one account for saving under several installment amount.
• The accumulated deposit with profit will be returned within one month of completion of a term.
• The depositor should notify the bank immediately on any change of address.
• The government tax will be deducted from the profit accumulated in this scheme.
• If necessary, at the request of the depositor, the scheme can be transferred to another branch.
• The Bank reserves the right to change the rules and regulations of the scheme as and when deemed necessary.
• Income Tax on profit paid shall be deducted at the time of payment.

Mudaraba Multiplus Saving Scheme:

Objectives of the Scheme:

• To gather public’s idle money in exchange of high return within the shortest possible time.

Terms and Conditions of the Scheme:         

• Any individual, company, educational institution, government organization, NGO, trust, society etc. may invest their savings under this scheme.
• The deposit can be made in multiples of Tk. 5,000.00.
• Any customer can open more than one account in a branch in his/her name or in joint names. A Deposit Receipt will be issued at the time of opening the account.
• The period of deposit is 10 (ten) years.
• Mudaraba Hajj Deposit Scheme:

In order to smooth arrangement of fund for performing Hajj, the bank has introduced this scheme for 5, 8, 10, 15 & 20 year’s period.

Investment of EXIM Bank:

As a 3rd generation leading commercial bank operating under Islamic Shariah, EXIM bank provides/deals in a variety of banking services including wide range of deposit and investment products, foreign exchange, remittance and other ancillary services with the support of most sophisticated/modern IT and professional management. The main investment businesses are focused on the following sectors/areas:

• Ready Made Garments
• Hospitals & Clinics
• IT Related business
• Agricultural and Agricultural developments items
• Fishing and fishing business promotion
• Telecommunication
• Transportation and communication
• Forestry and furniture
• Construction business and housing development
• Leather and leather goods
• Plastic and other synthetics
• Entertainment
• Photography
• Ceramic
• Hotel & tourism
• Warehouse and container services
• Printing and packaging
• Gunning and Bailing
• Pathological Laboratories
• Cold Storages
• Horticulture- Flower growing and marketing
• Food and oil processing plants
• Other admissible trading and intermediaries.

Modes of investment:

• Murabaha
• Bai Muazzal
• Izara Bil Baia
• Wazirat Bil Wakala
• Quard
• Local Documentary Bill Purchased
• Foreign Documentary Bill Purchased

EXIM CARDS:

• VISA Islamic Cards: By the grace of Almighty Allah, Exim Bank Ltd has started commercial operation of fully Shariah based VISA Islamic Card (Local, International & Dual Currency) under the principle of Bai-Murabaha. This is the first Islamic electronic product for any Islamic bank in Bangladesh.

The Salient Features of the card are:

• First Shariah Based Islamic Card by any Islami Bank in Bangladesh.
• Simple Profit Rate
• No Hidden Charge
• Dual Currency Facility in One Card
• Free Supplementary Card
• 24 Hours Customer Service
• Auto Debit Payment Facility
• Worldwide Acceptance
• Instant card message service in mobile.

Required Documents:

• Recent Passport size photograph (2 copies)
• Photocopy of TIN
• Photocopy of Passport (first 7 pages)/ National ID Card.
• Bank statement for the last 06 months.
• If salaried, attested original salary certificate/ pay slip.
• If self-employed, copy of trade license/ partnership deed/ Memorandum and Articles of Association.
• Copy of any utility bill/ any other card statement (if any)
• Shariah Agreement
• Bank may ask for any other document(s) if the merit of the case demand.

SMS Banking:

EXIM Bank brings SMS Banking services to provide instant access to your account information at any time. Any mobile phone user having account of EXIM Bank can get the service through the mobile phone upon registration.

What we offer in SMS Banking:

• Balance Enquiry
• Mini Statement
• Help Service
• Account Information.

PRICING:

The pricing decisions or the decisions related to interest and fee or commission charged by banks are found instrumental in motivating or influencing the target market.

The pricing policy of a bank is considered important for raising the number of customers’ vis-à-vis the accretion of deposits. Also the quality of service provided has direct relationship with the fees charged. Thus while deciding the price mix customer services rank the top position.

The banking organizations are required to frame two-fold strategies. First, the strategy is concerned with profit and fee charged and the second strategy is related to the profit paid. Since both strategies throw a vice-versa impact, it is important that banks attempt to establish a correlation between two. It is essential that both the buyers as well as the sellers have feeling of winning.

Place:

This component of marketing mix is related to the offering of services. The services are sole through the branches..

The two important decision making areas are:

• Making available the promised services to the ultimate users
• Selecting a suitable place for bank branches.

The number of branches of EXIM Bank Ltd.:

72 Branches  in Bangladesh and 35 Branches in Dhaka

i) Location of the Branches:

EXIM  Bank Ltd. has always try to be with its customer that is why wherever a feasible amount of potential customer is there they had put a branch near to that. EXIM  Bank Ltd.  is a leading bank of the country but not with maximum branches. They have gone for meeting maximum customer’s need with minimum possible branches as branch increases cost for the bank. So they have put 75 branches in most priorities areas according to their study. They are always observing market and researching over it to bring out maximum benefit out of the existing market. So we can find a branch of EXIM Bank Ltd. every nearby location either commercially, economically important. They tried to match their profitability by fulfilling their targeted customer’s need.

ii) Location of ATMs: EXIM Bank Ltd. is a member of the E-cash Shared ATM Network. E-Cash has a network of ATM’s located in strategically important locations on maximum five important cities / towns of the country. We are providing ATM service coverage to our branches. EXIM Bank Ltd. has established its booths in an environment where customers can take maximum benefit out of it. There are 28 ATM Booths of EXIM Bank. That is why they have chosen place like:

• Commercial Place
• With branch
• Marketplace
• Student gathering place
• Shopping mall
• Regular public gathering places

Promotion mix: It includes

• Sales promotion
• Personal selling
• Word-of- Mouth

Sales promotion:

As a part of sales promotion the bank time to time gives gifts, special offer, commission, incentives time to time to its customers. They give gifts on special occasions, send greeting cards and offer other facilities on special occasion or special customers.

Personal selling:

The bank encourages personal selling rather pushes personal selling through its employees. Time to time they gives target to every employee to achieve certain amount of account opening under their references, bring customers for applying for loans.

Word-of- Mouth:

Much communication about the banking services actually takes place by word- of- mouth information, which is also known as word- of-mouth promotion. The oral publicity plays an important role in eliminating the negative comments and improving the services. This also helps the banker to know the feedback, which may simplify the task of improving the quality of services. EXIM  Bank Ltd is trying its best to provide standard service to its customers so that they produce word-of-mouth marketing for them.

PEOPLE

All people directly or indirectly involved in the consumption of banking services are an important part of the extended marketing mix. Knowledge Workers, Employees, Management and other Consumers often add significant value to the total product or service offering. It is the employees of a bank which represent the organization to its customers.

In a bank organization, employees are essentially the contact personnel with customer. Therefore, an employee plays an important role in the marketing operations of a service organization. To realize its potential in bank marketing, EXIM Bank Ltd. become conscious in its potential in internal marketing’ the attrition, development, motivation and retention of qualified employee-customers through need meeting job-products. Internal marketing pave way for external marketing of services. In internal marketing a variety of activities are used internally in an active, marketing like manner and in a coordinated way.

The starting point in internal marketing is that the employees are the first internal market for the organization. The basic objective of internal marketing is to develop motivated and customer conscious employees. A service company can be only as good as its people. A service is a performance and it is usually difficult to separate the performance from the people. If the people don’t meet customers’ expectations, then everything will be lost. Therefore, investing in people’s quality in service based business means investing in product quality.

When his turns comes officer tells him about the specification of saving account and other schemes. When customer chooses saving account the officer gives him the form and instructs him how to fulfil it. After customer complete the form and done with other required activities the officer input the required information by the computer system they are using and notify them that their account has been opened successfully and they can operate it now with a specific account number. So the customer leaves the branch by opening his saving account.

Definition of Customer satisfaction

Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a organization meet or surpass customer expectation.

Satisfaction is as a judgment following a consumption experience – it is the consumer’s judgment that a product provided (or is providing) a pleasurable level of consumption-related fulfilment.

Customer satisfaction is defined as “the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.” In other words, “The degree of satisfaction provided by the goods or services of a company as measured by the number of repeat customers.

Importance of Customer satisfaction

1. It is the KPI within the Bank.
2. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator.
3. Satisfied customers are most likely to be loyal
4. Satisfied customers generally make repeat orders
5. They generally use a wide range of services offered by Bank.
6. A few unhappy customers will have an outsize impact on your reputation online. So all of them need to be satisfied.
7. It’s the best form of advertising.

Factors affecting Customer Satisfaction in Banking Sector:

Banking is a service industry focused towards the customer’s money and its management. An element that strongly drove the satisfaction of customers in the banking sector was the conviviality factor related to the features of a bank and the attributes of its personnel. So as a service oriented industry the banking sectors face some service oriented factors that affects its customer satisfaction.

Traditional Banking Services

The factors derived represent the different elements of retail banking are the skill and competency of the employees, their confidence instilling behavior, number of employees in each branch, convenient timings of the bank.

Internet Banking Services

The second factor affecting Internet banking adoption refers to the Internet Banking Services. The most prominent and vital characteristic for any adoption of new service or product, is generating awareness among the customers about that specific service or product.

Hence, if the consumers of a bank are not adopting Internet banking, it may be because they are not aware about such a service being available and the added value that it offers.

Bank Image Positioning

The overall image of the bank as perceived by the customers can be termed as ‘Bank Image Positioning’. The elements were the vision and mission statement of the bank, its clear cut objectives to satisfy its customers, and the brand (image) of the bank.

Customer Convenience

The convenience and comforts that a customer should get from a retail bank can be termed as ‘Customer Convenience’. The elements were convenient locations of the ATMs, provision of the ATMs at several prominent locations, the number of branches provided, convenient location of the branches being used, and the general ambience and comfort level at the bank.

Risk Privacy in Internet Banking

Risk and Privacy Concerns is another important factor.  The element of trust in this context would relate to the overall security of online transactions and determine the acceptability rate of this alternative delivery channel in the long run. Security is the ability of a system to prevent illegal or inappropriate use of its data and to deter cyber criminals and hackers. Using the Internet as medium for transaction always entails some risks. Perceived risk in the field of e-banking can be defined as: “the potential for loss in the pursuit of a desired outcome of using e-banking services”. Perception of high risk associated with performing financial transactions over the Internet may actually hinder Internet banking adoption.

Bank Charges

It relates to the reasonability of the charges collected by the bank when compared to other banks and also levied as per Bangladesh Bank Guidelines. It’s also important to consider the number of categories to charge the customers or impose penalties.

Bank Price Policy

It consisted of the pricing policies of the bank. The elements factored were: the interest rates charged on loans, the interest rates offered by the bank on various deposits, and the number of categories to charge the customers or impose penalties.

Bank CRM

It was a summation of the elements that give rise to a healthy relationship with the customers and was termed ‘Bank CRM’. The elements involved were: average time taken to resolve a problem, queuing in branch, the products and services offered by the bank, and the customer’s decision to continue with the concerned bank if satisfied.

Customer Satisfaction Analysis

Purpose of the survey

This survey will be conducted to find out the customer satisfaction of  EXIM Bank Ltd. It is very necessary for a bank to know that whether their customers are satisfied or not with their service. I hope this survey will find out how much the customers are satisfied or not with their product and service.

Methodology

The nature of the survey is based on quantitative information. For this I will conduct direct interview of actual customers of EXIM Bank Ltd.

Target population

My survey focused on individuals as sampling elements. The time of study was 12 February to 15 April 2013. The research is done in Dhanmondi Branch.

Sampling Technique

Generally there are two types of sampling technique. They are probability and non-probability sampling technique. I used non probability sampling technique.

Sample Size

The survey is conducted at Dhanmondi Branch. The age of the customers are between 20 to above 50. The sample size is 50.

Questionnaire design

Considering the survey I collect data through a structured questionnaire using 5 point Likert scale where (strongly disagree = 1, Disagree = 2, Neutral = 3, Agree =4, strongly agree =5) to collect information for analyzing customer satisfaction of EXIM Bank Ltd.

Questionnaire

(For study purpose)

This questionnaire is prepared to identify the “Customer Satisfaction of EXIM Bank Ltd.’ Your kind co-operation will ensure to discover the true scenario. Thank You.

“Customer Satisfaction level of EXIM Bank Ltd.” Dhanmondi Branch. Dhaka.

Type of service you are getting from Exam Bank Ltd.

1. Maintaining Account
2. Doing Export / Import Business
3. Maintaining Investment Account
4. Getting Services in Various Forms

Questionnaire

After summation of all the 20 averages for strongly disagree and dividing by 20, we get the average no of responses of strongly disagree (0).

After summation of all the 20 averages for disagree and dividing by 20, we get the average no of responses of disagree (29.5).

After summation of all the 20 average for neutral and dividing by 20, we get the average no of responses of neutral (8.2).

After summation of all the 20 averages for agree and dividing by 20, we get the average no of responses of agree (46.5).

After summation of all the 20 averages for strongly agree and dividing by 20, we get the average no of responses of strongly agree (15.8).

After conducting the survey we came to the conclusion that the average of agree is highest. That means they believe that EXIM Bank Ltd. provides the service to their satisfaction level.

MAJOR FINDINGS

SWOT ANALYSIS

SWOT analysis is the detailed study of organization exposure and potential in perspective of its strength, weakness, opportunity and threat. The facility of the organization is to make its existing line of performance and also foresee the future to improve their performance in comparison to their competitors. So if we consider EXIM bank as a business firm and analyze its strength, weakness, opportunity and threat the scenario will be as follows:

Strengths of EXIM Bank:

• Their growth rate is already high and they can provide huge advantage to their customer to getting loan and other facilities.
• Their deposit base is very strong and they have strong financial resource.
• As Islami sariah based EXIM bank has a prominent sariah council and they can provide different types of Islami Banking products.
• Their leadership is good as well as they have top management level team.
• EXIM bank has the supervision of the advisors and chairman of the Bank.
• Other strength is company reputation to attract the customers.
• They have cooperation with each other.
• The major strength of EXIM bank is the skilful and good combination of young and experienced brand of work force.
• EXIM bank introduces online banking all over the country.

Weaknesses of EXIM Bank Ltd:   

• All the time customers are not satisfied about the bank service quality.
• Excessive dependency on term deposits.
• They have no sufficient employee to serve their customers.
• Lack of proper motivation, training and job ration.
• Lack of own ATM services and credit cards need to be expanded vastly with market demand.
• The advertisement activity should increase about the bank product.

Opportunities of EXIM bank

• They should increase credit card business
• Try to launch own ATM and card services
• Now a day many banks are coming to the market in present scenario.So try to expand their all facilities.
• They should spread scope or market penetration through diversified products and wide banking

Threats of EXIM bank

• Market pressure for lowering the interest rate
• Foreign currency quick fluctuation
• Increased competition from Islamic bank and other commercial bank
• Deteriorated export import and guarantee business due to indecent competition as well as economic slurp.

FINDINGS

This is an important part of my report titled, “A Study on Customer Satisfaction of EXIM Bank Bangladesh Limited”. In finding part, I am interpreting the results of my survey on 50 sample customers. The result of this study are stated below:

• EXIM Bank Bangladesh Ltd is focused on Islami Shariah based banking system. Their main motto is profit sharing.

• EXIM Bank has different loan scheme among them one is retail loan and another is corporate loan. In case of retail loan the loan size is lower. But in case of retail loan the loan is decided as per negotiation with the client.

• They provide different attractive schemes to the clients than other banks and they deduct 10% of profit from the savings of the client as per tax on behalf of the government.

• Its current ratio is increasing year to year which means the bank is able to pay its short term obligations.

• Its cash ratio is also increasing it means it is able to meet the cash requirements of the clients.

• The opening profit margin, Net profit Margin, ROA ROE is satisfactory.

• The P/E ratio of EXIM Bank is declining that means investors are paying more for each unit of net income.

• They provide quality financial services in export and import trade.

• EXIM Bank does not give attention on advertisement. In a competitive banking sector a bank has to enhance advertisement campaign in order to get or retain its market share.

• The core strength of EXIM Bank is its strong and reliable client base. KYC is the motto of this bank.

• Most customers choose this bank service because of their better service.

• Most customers are satisfied with the branch location. Because customers need safety and if the bank location is near by the office or home so they are more interested to open an account in this bank.

• Most customers are satisfied with the service charge of the bank. Customers think that service charge is quite low than other banks.

• The bank provides necessary information in time.

• The customers are satisfied about the solve of the problem. The bank is most careful to solve the customers’ problems.

• The behaviour of the employees is satisfactory. Most of the employees’ behaviour is good that’s why customers are satisfied.

• Most customers are satisfied with their delivery process.

• The internal decoration of the bank is attractive.

• The employees maintain formal dress code.

• EXIM Bank values its high profile customers.

• It is very much committed to its clients.

• Branch environment of the bank is pleasant.

• Employees need more training from time to time. The bank provides training in time. But it should be increased.

• The customers are not satisfied with the number of ATM booth.

• EXIM Bank is quick service provider.

• The employees of the bank are very friendly and helpful.

Conclusion

The Export Import bank of Bangladesh limited is a new generation bank with a dynamic outlook combining both shariah based and modern technology driven banking services. Since after its inception the bank is satisfactorily contributing to the growth of GDP of the country through stimulating trade and commerce accelerating the pace of industrialization boosting up export, creating employment opportunity for the educated youth, poverty alleviation, raising standard of living of limited income group and overall sustainable socio economic development of the country.

There are lots of local and foreign banks competing in banking industry in Bangladesh and the EXIM Bank Limited is keeping its promises very successfully. The efficient employees of EXIM Bank always emphasize on customer satisfaction by providing them with high quality products and services in easier process within shorter time period. EXIM Bank concentrates on customers’ expectation in such a way that the satisfaction level of the customers can reach to 100% level. The bank is gaining improvement in almost all sectors over the last year. The bank has all the possibilities of becoming one of the leading banks of the country if it can maintain this trend of improvement.

Before internship I had idea about banking but it was only bookish. Now after completing my internship period and preparing term paper on customer satisfaction I got practical aspect of banking. It will definitely help me to observe the things from banking perspective.

Recommendation

EXIM Bank Bangladesh Limited has an efficient and excellent management team and performing with a great expertise and care. The limitations can be overcome by some measures to make the performance outstanding. I have some suggestions for the EXIM Bank from my observation out of my survey on 50 customers. Those are given below:

• The EXIM Bank should make their credit approval and monitoring system more customers friendly.

• The loan sanction process should be easier that the clients can feel convenient to take loan from the bank.

• The bank should increase their earnings because their P/E ratio is decreasing day by day.

• The bank should consider easy procedure of opening and maintaining accounts.

• Establish own ATM network and maintain sufficient in ATM booth.

• Training program should be taken more seriously for betterment of service.

• Bank should offer more facilities to the customers’ credit card, visa card and ATM machine etc.

• The number of branches should be increased. Branches should open in rural areas for available services.

• The bank should improve the size, location, personal relationship and reputation. Unnecessary information should be avoided.
• The employees must be so efficient to solve customer problems and provide quicker service.

• The bank needs to show more advertisement by TV and newspaper so that people can know about the products and prices which they offer.

• To hold the level of customer satisfaction, bank should offer new products and provide better services depend on customers’ need.

• To increase the number of card holders bank should advertise of it properly and influence the account holders to take the debit or credit card.

• Employees of bank should be more aware to answer over the telephone.

• The bank should arrange the time to time promotion system for the employees to increase their effectiveness or motivation level.

• Complain or suggestions box of the customers may be arranged so that customers can give their opinions freely.

• Modern technology should be properly maintained.

• The bank should concentrate on interest rate according to the expectations of the customers.

• The number of employees should increase to remove the barriers of providing quick services to the customers.

Questionnaire

(For study purpose)

This questionnaire is prepared to identify the “Customer Satisfaction of EXIM Bank Ltd.’ Your kind co-operation will ensure to discover the true scenario. Thank You.

“Customer Satisfaction level of EXIM Bank Ltd.” Dhanmondi Branch. Dhaka.

Type of service you are getting from Exam Bank Ltd.

1. Maintaining Account
2. Doing Export / Import Business
3. Maintaining Investment Account
4. Getting Services in Various Forms

Questionnaire