Analysis and Evaluation of Credit Card Operation in National Bank Limited

Analysis and Evaluation of Credit Card Operation in National Bank Limited

Objective of the Internship:

Internship program give an opportunity to develop business skill and gain exposure to the work environment. It can provide the valuable work experience and an opportunity to line up a job before graduation. There are many objectives of doing an internship course. These objectives are given in bellow:

  • Gain valuable work experience.
  • Internship is a great way to meet people in work field.
  • This internship course gives me the chance to use the skills I have learned in the classroom in a real world setting.
  • Internship is a great way to build confidence.
  • Internship will increase the sense of responsibility.
  • Internship program will increase earning potential upon graduation.

Internship Positions & Duties:

The management has accepted me for doing internship program in NBL for a period of 3 (three) month. The head office (HRD division) gives me the opportunity to work in the

Mohammadpur Branch. Also give me the rights to visit any branch or division of head office for collection of my data to complete the internship program. A job description is a

Written statement of what the job holder does how it is done, under what conditions it is done, & why it is done. It should accurately portray job content, environment & conditions of employment.

Job title: Intern

Reports to:  Assistant vice president

Department: All department of the bank

Environmental conditions: none

Functions: work in general banking business.

Duties and Responsibilities:

      To attend office regularly for get practical training in office discipline.

Any work as when assigned to.

Maintenance of cash receiving register.

Opening & closing of SB, CD, SOD, FDR, & STD accounts related work.

Entry into the khacha  khata.

Daily expenditure voucher & issuance of Cheque book.

Online entry (A to Z any banking system)

Record keeping of overall Credit card.

Giving seal & pin in the assign task.

Maintain Rules, regulation & charge schedule of banking business.

Writing down western union form & other task of the department.

Helped many clients to fill up any form.

Posting salary statement into the register book.

Updating records & posting into the register books.

General Banking:

General banking is one of the most important divisions for the   bank. It is the starting point of all the banking operations. I worked as “Intern” in the organization. As my Major in Marketing so I have to work related with my relevant field & also some general banking system. As NBL is a financial institute I have work some general banking business.

Account opening section.

NBL power card section

Western union money transfer

Clearing & bills

Cash division

Advance& loans

Remittance section

Locker section

Accounts & fixed Department 

As an “intern” my requirement was to attend office regularly for get practical training in office discipline & my time was 10:00 am – 5:30 pm everyday except Friday & Saturday. When I was there I have to maintain the time line. The bank has given me job duties & job responsibilities in banking part.

Account Opening Department:

Account opening was one of my tasks. The major duties of account opening department are to open various kinds of accounts and keep record of that accounts. In this department gather lots of practical knowledge and this are –

  • How to open various kinds of accounts.
  • What are the prerequisites to open an account?
  • The amount require for different types of accounts.
  • How to maintain ledger book.
  • How to keep record of various accounts.
  • Verifying the account opening form.
  • Verifying other document regarding account opening.
  • Verifying the customer signature.
  • Issuing cheek and cash books.

 FDR Section:

In FDR section I worked for a very few time. In this section provided the information regarding the FDR. I helped the clients to fill the FDR form. Then I checked the documents that required. When the officer completed his posting I took the papers to the manager sir for his approval. At the end of the day I put entry of the FDR forms in an entry book according to the FDR numbers, names, opening date and matured date. After that I fill up all the forms.

Learning Points:

Have knowledge about the credit card.

I have learned about different types of accounts and how to open an account.

There are lots of DPS in the Bank. I have learned about the requirement of to open a DPS. I also know which DPS provides how much interest.

Written & calculate amounts in required task quickly.

Data entry & data posting in the online banking as well as in register book.

Use of office instruments such as stapler, computer, printer, punch machine, pin remover etc.

 Organization Overview:

 Backdrop of the Bank:

National Bank Limited has its prosperous past, glorious present, prospective future and under processing projects and activities. Established as the first private sector Bank fully owned by Bangladeshi entrepreneurs, NBL has been flourishing as the largest private sector Bank with the passage of time after facing many stress and strain. The member of the board of directors is creative businessman and leading industrialist of the country. To keep pace with time and in harmony with national and international economic activities and for rendering all modern services, NBL, as a financial institution automated all its branches with computer network in accordance with the competitive commercial demand of time. Moreover, considering its forth-coming future the infrastructure of the Bank has been rearranging.

The expectation of all class businessman, entrepreneurs and general public is much more to NBL. Keeping the target in mind NBL has taken preparation to open 17 new branches and 5 SME centers by the year 2010.  In addition we are further expanding our presence through developing and expanding the SME financing, Any Branch banking, off-shore, banking facilities. The emergence of National Bank Limited in the private sector is an important event in the Banking arena of Bangladesh. When the nation was in the grip of severe recession, Govt. took the farsighted decision to allow in the private sector to revive the economy of the country. Several dynamic entrepreneurs came forward first establishing a bank with a motto to revitalize the economy of the country.

Overview of NBL:

National Bank Limited was born as the first hundred percent Bangladeshi owned Bank in the private sector. From the very inception it is the firm determination of National Bank Limited to play a vital role in the national economy. We are determined to bring back the long forgotten taste of banking services and flavors. We want to serve each one promptly & with a sense of dedication and dignity. The then President of the People’s Republic of Bangladesh Justice Ahsanuddin Chowdhury inaugurated the bank formally on March 28, 1983 but the first branch at 48, Dilkusha Commercial Area, Dhaka started commercial operation on March 23, 1983. The 2nd Branch was opened on 11th May 1983 at Khatungonj, Chittagong.

At present, NBL has been carrying on business through its 106 branches spread all over the country. Besides, the Bank has drawing arrangement with 415 correspondents in 75 countries of the world as well as with 37 overseas Exchange Companies located in 13 countries. NBL was the first domestic bank to establish agency arrangement with the world famous Western Union in order to facilitate quick and safe remittance of the valuable foreign exchanges earned by the expatriate Bangladeshi nationals.

NBL was also the first among domestic banks to introduce international Master Card in Bangladesh. In the meantime, NBL has also introduced the Visa Card and Power Card. The Bank has in its use the latest information technology services of SWIFT and REUTERS. NBL has been continuing its small credit programmer for disbursement of collateral free agricultural loans among the poor farmers of Barindra area in Rajshahi district for improving their lot. Alongside banking activities, NBL is actively involved in sports and games as well as in various Socio-Cultural activities. Up to 2008, the total number of employee of NBL stood at 2, 737.

Since the very beginning, the Bank exerted much emphasis on overseas operation and handled a sizeable quantum of homebound foreign remittance. The Bank established extensive drawing arrangement network with Banks and Exchange Companies located in important countries of the world. Expatriates Bangladeshi wage earners residing in those countries can now easily remit their hard-earned money to the country with confidence, safety and speed.

The Bank earned a profit before tax of Tk. 2,828.80 million for 2008, a growth of Tk. 793.70 million or 39 percent, over the normalized profit before tax for 2007.The Bank’s profit after tax and provision for 2008, at Tk. 1,517.40 million reflected an even stronger growth of 22.51 percent or Tk. 1,238.10 million, over the normalized profit after tax for 2007. In 2008 Bank’s revenue was Tk. 8,893.10 million, which was up by Tk. 1,710.50 million or 23.81 percent. The bank’s total loans and advances portfolio was Tk.49,665.10 million at the end of December 2008 compared to Tk.36,475.70 million at the end of December 2007. The deposit base of the bank registered a growth of 25.51 percent in the reporting year over the last year and stood at Tk. 60,195.20 million in December 2008.

This was achieved with better management of interest margins in volatile market conditions and adequate Balance Sheet growth during the period. Being a regular tax payer, we have made a direct contribution to Government Exchequer of Tk. 761.70 million in the calendar year 2008 against Tk. 449.70 million in previous year registering a staggering growth of 69.38 percent.

NBL has now acquired strength and expertise to support the banking needs of the foreign investors. NBL stepped into a new arena of business & opened its Off Shore Banking Unit at Mohakhali to serve the wage earners & the foreign investors better than before.

 Mission and Vision of NBL:

Our mission is to continue our support for expansion of activities at home and abroad by adding new dimensions to our banking services which have been ongoing in an unabated manner. Alongside, we are also putting highest priority in ensuring transparency, account ability, improved clientele service, as well as our commitment to serve the society through which we want to get closer to the people of all strata. Winning an everlasting seat in the hearts of the people as a caring companion in uplifting the national economic standard through continuous up gradation and diversification of our clientele services in line with national and international requirements is the desired goal we want to reach.


Ensuring highest standard of clientele services through best application of latest information technology, making due contribution to the national economy and establishing ourselves firmly at home and abroad as a front ranking bank of the country have been our cherished vision.

 Objectives of NBL:

  • Bringing modern Banking facilities to the doorstep of general public through diversification of Banking services, thereby arousing saving propensity among the people.
  • Foreign a cordial, deep-rooted and firm banker-customer relationship by dispensing prompt and improved clientele services.
  • Taking part in the development of the national economy through productive deployment of the Bank’s resources as well as patronizing different social activities.
  • Connecting clients to modern banking practices by the best application of improved information technology, so that they get encouraged to continue and feel proud of banking with NBL.
  • Ensuring highest use of the professional workforce through enhancement of their aptitude and competence.
  • Responding to the need of the time by participating in syndicated large loan financing with like-minded Bank’s of the country, thereby expanding the area of investment of the Bank.
  • Elevating the image of the Bank at home and abroad by sustained expansion of its activities.

NBL Core Values:

NBL’s core values consist of 6 key elements. These values bind their people together with an emphasis that their people are essential to everything being done in the bank

  • Integrity
    • NBL protects and safeguards all customer information.
    • NBL treats everyone in an equitable and consistent manner.
    • NBL creates an environment which earns and maintains customer trust.
  • Open Communication
    • NBL builds customer relationship based on integrity and respect.
    • NBL offers a full line of products and excellent service.
    • NBL is committed to the prosperity of the customers and shareholders
  • Performance Driven
  • In NBL, customers and employees are judged in terms of their performance.
  • Continuous Self Improvement

Continuous learning, self-challenge and strive make ways for self improvement of workforce at NBL.

  • Quality
    • NBL offers hassle free better service timely.
    • NBL builds-up quality assets in the portfolio.
  • Teamwork 

Interaction, open communication and maintaining a positive attitude reflect NBL’s commitment to a supportive environment based

Corporate Information:

Incorporation of the Bank




Certificate of commencement of Business


Licensed issued by Bangladesh Bank




Licensed issued by Bangladesh Bank for opening the First branch, Dilkusha Branch



Formal Lunching of the Bank



Commencement of Business of Dilkusha Branch



Listed with Dhaka Stock Exchange


Publication of prospectus



Date of first public subscription (IPO)



Trading of shares in DSE



Association with Gulf exchange Pte Ltd



Signing in agreement with Western Union Money Transfer



Listed with Chittagong Stock exchange



Trading of Shares in CSE



Listed with CDBL



Inauguration of Balaka Exchange Pte Ltd



Registration Certificate as Stock Broker



 Network of the Branches:

National Bank has 121 existing branches & 10 SME centers, and some other proposed branch all over Bangladesh to provide better services to their valuable customer. The bank has one or more branches in important & lucrative places so that the customer can easily reach to it. Because NBL knows- speed & convenience of place and time for the customers are becoming important determinants in service delivery strategy the investment of honorable shareholders into asset.

NBL has many international branches. Those branches are situated in all over the world.

Those branches are in USA, Switzerland, Singapore, Malaysia, Oman, Qatar, UAE, Kuwait and Saudi Arabia.

Management Hierarchy of NBL:

Highly qualified and efficient professionals manage this bank. Board of Directors who also decides the composition of each committee determines the responsibilities of each committee. All routine matters beyond delegated powers of management are decided by or routed through the executive committee, subject to ratification by the Board of Directors. In operating the organization, management plays a vital role. Many things are dependent on the management. So every organization should be very careful about the management structure. It depends on the company’s business ethics.

From the top to the bottom management body can be divided into four levels:

  • Top-level Management
  • Executive level Management
  • Mid level Management
  • Junior level

The management processes are as follows:

The strategic planning approach in NBL is top down. Top management formulates strategy at the corporate level and then it transmits through the division to the individual objects. Board of directors usually takes the decisions. Organization of National Bank Limited is based on departmentalization. The organization is divided into twelve departments headed by Executive Vice President or Senior Vice President. In the National Bank Limited the whole operation is centralized and authority is delegated by written guidelines which are as follows:

  • Operation manual approved by head office, where each aspect or banking operation is elaborately defined.
  • Advance manual including advance limit for different management level.
  • Bad and doubtful recovery manual
  • Code of conduct.
  • Foreign banking guidelines, etc.

Different management position holders in departments and branches practice their authorized power in different cases.

Employees are promoted to the higher position for their outstanding performance. It is found that the average length of a position held by an employee is around 5 years. Entry level recruitments process of the National Bank Limited is conducted in three ways such as one way is recruitment of probationary officer. Each probationary officer has one year probation period. After completion of probation period of the officer join as grade 3 officer. The career path of probationary officer is headed toward different management position. Second way of recruitment is to recruit non probationary officer, who join as an assistant officer. The career path of an assistant officer is lengthier than probationary officer. Last way is to recruit staff and sub stuff such as typist, driver, guard etc.

The bank has strict control over its all organizational activities. Audits and inspection are conducted by different parties to cheek whether the bank implement these control system properly or not. The central bank conducts credit inspection by a team. The National Bank Limited has audit and inspection department to measure the internal operations. Audit team is sent to the branches now and then and is responsible for preparing report that will be submitted to the chief administration to take necessary actions.

Corporate Slogan of the NBL:

“A bank for performance with potential”

Profile of the NBL (Mohammadpur Branch):

Establishment                          : 22nd   September 1996

Location                                  : Plot no.-9, Block – C, Tajmohal road,


Status                                      : Private limited company.

Slogan                                     : “A bank for performance with potential”

Target customer                      : Individual & corporate customers

VP                                           : Md. Delowar Hossan

AVP                                        : Md. Mahabub Annam Siddik

Number of employee              : 15

Number of staff                      : 5

Member of top team               : 2006(western union)

Department of the Br.             : 11 department

Branch code                            : 18

Banking system                       : online A to Z any banking system.

Best performer                        : 1998, 1999

Service                                                : Deposit A/C (SB, CD, STD, FDR), Monthly savings                                                            Scheme (NMS), Special deposit schem (NDS), NBL                                                                        housing loan, Small house loan, Festival, Lease

Finance, Consumer credit scheme, Master card & visa

Card, Prepaid card (power card), Western Union

Money Transfer.

Phone                                      : 029114015

Email                                       : [email protected]

Website                                   :

Origin of the Report:

An internship  program is an opportunity for a student, bearing a great significance in regard of understanding the real corporate world closely and familiarize himself with the implicational affect of various key business knowledge, where there exist an immense opportunity to interact with both internal and external environment of the organization.

My topic is “Analysis and Evaluation of credit card operation of NATIONAL Bank LTD.’As a student of marketing I have selected the ‘credit card and its operation ‘which is one of the important product of National Bank Ltd. In this report I have mentioned the begging history of credit card along with the present condition of credit card in Bangladesh, cards offered by NBL, its promotional activities and analysis with other respective bank in our country.

This report is the result of 3 months internship program in National Bank Limited (Elephant Road Branch). As a student of Business Administration of Dhaka City College under the affiliation of NationalUniversity I was required to complete an internship program in a reputed institution. And for such purpose I got my opportunity to complete such program in one of the leading commercial bank in our country-National Bank Ltd. The authority of National Bank Ltd. has provides me an opportunity to work under their guide lines.


As the report is prepared, focusing on the Credit Card operation and also discussing the credit card performance of National Bank Ltd, So the major objective of my study was as follows.

Board Objectives:

The broad objective is to focus on the present scenario of credit card in Bangladesh and how it is being carried out at the present.

Specific Objective:

To have a basic idea of National Bank Ltd. By analyzing the business operation of the bank

To understand the need of credit card in perspective of Bangladesh.

To understand the different segment which are directly and indirectly related with credit card.

Providing a snapshot of current situation of Credit Card, its market position in Bangladesh.

Comparing the different type of Credit Card in Bangladesh.

Understanding the different kinds of promotional activities.

Analyze the different attributes of Credit Card.

Analyze the Credit Card performance of National Bank Ltd.

 Scope of the Report

Internship in NBL is an opportunity for gathering practical training in office discipline by which I can evaluate or expose myself. As I worked in the National bank limited (Mohammadpur Branch) to learn banking activities. So I try to collect data & information related my topic of the report from the employee as well as from the organization.


Understanding the analysis and evaluation of credit card operation required both internal and external information. And for so, information was collected from both internal sources and external sources. My research’s required information was collected in the following way

In order to make this report more dependable & meaningful, I used both secondary & primary sources.



Primary Data




Both primary and secondary data sources were used to generate the report.

The Primary sources are as follows:

Face to face conversation with employee.

National Bank Ltd. helps me by providing data related to their Credit Card performance, operation and process. 

Day to day note taken during the internship period.

Informal conversation with the bankers.

The Secondary sources are as follows:

Annual report 2009, website & profile of NBL.

Various books related with the Topic.

Published or unpublished or personally collected data from officers.

Files & folders.

I have collected the secondary data from the internet.


While preparing my report on the particular topic I have faced some dilemma which devaluated the weight of my report to some extent. As my topic was based on overall scenario of Credit Card of  NBL  I was required to gather information  to specific measures for evaluating NBL Performance in the field of credit card and doing so I have faced the following situation which, I consider as the limitation of my report.

  • It was difficult to make information based rich report in a short time period.
  • To identify the present situation of the organization without any experience was not to easy.
  • It was difficult to work on information collection during working hours of bank because bank was so busy.
  • Lack of practical skills, and so forth.
  • For the security of the bank many information was not provided to me. So in some case it was difficult to identify the actual condition of the bank.
  • Data used for analytical purpose was not exactly up to dated, though I tried my best to make it as updated as possible.

Report Preview:

In this report I have mentioned the overall scenario of credit card regarding its operation. I have prepared this report with several segments that are directly related with the credit card operation.

In chapter four I have mentioned the significant background of credit card, its feature, importance, limitations etc.Than I have mentioned the present scenario of credit card in Bangladesh, with the members and services of BEPS, the major issuer of credit card in our country and other essential consideration.

In six chapters I have mentioned the different card that NBL is offering to the customer, like credit card and debit card and all other related information. Than I have shown the issuing process of credit card with its terms and condition, credit limits required documents etc.

In next segment I pointed out the different promotional and social activities of NBL. Than I have prepared a comparison of NBL Credit Card with other respective bank where I have mentioned different fees & charges of Credit Card.

After finishing this, I have made an analysis on NBL credit card with its market share position, SWOT analysis and its different competitive force.

Finally in the last segment I pointed out some findings and Recommendation after analyzing the report and finally I have prepared a conclusion from my own view I belive this report will be very helpful for any person to get information and other attributes related to credit card and also it will be very helpful for the organization.

Background of Credit Cards:

The ‘credit card’, though a new phenomenon in business and transaction arena which had already won the hearts of millions across the globe, has set its foot in this part of the world with its magical power and becoming a way of life here by offering its handy feature and usefulness. In the advent of Information Technology and globalisation, now shoppers need not worry about money, all they need is willingness and a credit card to buy anything they want at any places across the ‘Global Village’. Worldwide access, acceptability and popularity as well of credit cards have rose to such an extent that it is now posing a threat to theory of old ‘hard-cash’ possession of currencies amid growing sense of insecurity worldwide. The forward march of ‘plastic money’, the other name of the credit card, is so rapid that the whole concept of monetary system needs immediate review as it has put a question mark in the very existence of paper money.

Physical Feature

The credit card is rectangular and looks like a phone card. It is a layered piece of hard plastic with holograms and security features. It also carries a strip of magnetic tape on the back which is loaded with electronic data including the cardholder’s details. The strip is read electronically by specialized machines called Point of Sale (POS) Terminals at merchants or Automatic Teller Machines (ATM).

Kinds of Cards

There are mainly two kinds of cards-credit card and debit card. By credit card one can purchase from stores called merchants, the price of which is payable at the end of the month through the affiliated banks as per notification. On the other hand, debit card is based on immediate payment system whereby one has to insert card into the ATM (Automatic Teller Machine) located at the key spots in the city. And so it is often called electronic purse. For debit card one has to have an account in a bank while credit card does not necessitate any such provision.

Why it’s Important?

A credit card is a great financial tool. It can be more convenient to use and carry than cash, and they offer valuable consumer protections. Paper money and coin are risky and burdensome for carrying. One can avoid the toll of finger-counting changes in this system. Dollars, Pounds or Taka can be plundered, lost or stolen. But there is no such fear for card. The cardholder is given a code number called PIN (Personal Identification Number) without which the card cannot be used at sales or services points where the PIN is required. Only the owner of the card will be entitled to use it. In case the card is stolen or lost the clients’ bank will issue a fresh card.

Brief History:

The card facility was first introduced in the United States in the beginning of the 20th century. Western Union, a US money transfer company, started issuing an embossed metal plate to its preferred customers in 1914. The cardholder had to pay an annual subscription to join the club. This was the beginning of the charge card.

In the 1920s, a shopper’s plate – a “buy now, pay later” system – was introduced in the USA. It could only be used in the shops which issued it. In 1950, Diners Club and American Express launched their charge cards in the USA, the first “plastic money”. In 1951, Diners Club issued the first credit card to 200 customers who could use it at 27 restaurants in New York. But it was only until the establishment of standards for the magnetic strip in 1970 that the credit card became part of the information age. 1958 American Express Bank, like Dinner Club, started card on travel and entertainment. By 1959 the system evolved in great magnitude. A cardholder was allowed to pay off the full amount at the end of the month or to spread payment to suit his or her requirements. The customer’s monthly payment included a finance charge on the unpaid balance. In 1960 Bank of America introduced its own card, the Bank Americacard and offered license to other banks in 1966 that brought this system into world arena. A good number of banks across the world bought the license and marketed credit cards.

On the other hand, in 1967 four California banks changed their name from the California Bankcard Association to Western State Bankcard Association (WSBA). WSBA opened its license to other financial institutions. Its bankcard product was known as Master Charge. Numerous financial institutions became Master Charge members to compete with Bank Americard. In 1977 Bank Americard was renamed as Visa USA/Visa International and in 1979 master Charge changed its name to Master Card maintaining the lofty standard to meet up the customers’ expanded needs.

Criteria to be a Card Holder:

A person has to fulfill some criteria to be a cardholder. Every bank has its own array of criteria by which the qualification of an applicant is assessed. The criteria may range over such factors as income range, social status, place of living, education, designation etc. It’s quite natural that if the selection criteria for members are more flexible then their clients would be more. On the other hand, if the selection criteria are more conditional and harsh then its operation would be limited.

There are many business centers which do not give card facilities causing troubles to the cardholders. The most disadvantage of the card is that all the people wishing to be cardholders cannot enjoy card facilities because of ceiling-touch income bracket along with other criteria, only a certain section of people fulfilling criteria can be cardholders.

There is a number of credit cardholders who do not give the money to the bank after finishing the card limit. In this case, the banks have to fall in troubles and expansion of credit cards is naturally discouraged. Again, there are some people who try to take illegal advantage over credit cards. A person was arrested on charge of possessing fake credit cards. The person is the owner of a departmental store providing with credit card facilities to the customers. It is expected that credit cards will be used in a fair way in our country and credit cardholders having ill motive should be prosecuted to check the malpractice.

Bangladesh Electronic Payment System (BEPS):

BANGLADESH ELECTRONIC PAYMENT SYSTEM LTD IS A certified Third Party Processor (TPP) and a joint – Venture Company between SunGard System Access (SSA), a Singaporean registered institution and reputed entrepreneurs of BD, providing financial solutions to banks. BEPS provides a suite of complete turnkey card management solutions to bank and other financial institutions in BD along with core banking software solution. National bank is one of the members of BEPS and operating under their credit card management solution.

Objective of BEPS

BEPS objectives are:

To provide first class operations to all banks by consolidating their back end.

Help banks and financial institutions to bring down the cost of processing.

With the continuous support of its local and international partners, BEPS has progressed very fast to make a major impact in the BD market.

 Member banks of BEPS

Bangladesh Electronic Payment System (BEPS) currently have 8 member banks, which are managing their credit card with the turnkey solution of BEPS.

  1. 1.      National bank limited


  1. 2.      Bank Asia


  1. 3.      United Commercial Bank limited


  1. 4.      NCC bank limited.


  1. 5.      The city bank limited


  1. 6.      Dhaka bank limited


  1. 7.      Brac bank limited


  1. 8.      EXIM bank


  1. 9.       South East Bank Ltd.


Services of BEPS

Customize and provide ATM /debit/credit card software for banks according to their requirements.

Set-up the interface between banking software and card management software by bridging the gap using state-of- the- art- middleware.

Setup of hardware and telecommunication infrastructure in banks for card operation.

Complete certification of bank system for becoming issuer and acquirer of VISA/ MASTER CARD brands.

Assist the bank in card designing, ordering and insuring successful delivery of cards by complying with VISA/MASTERCARD standards.

Train bank personnel to operate and manage the card center efficiently.

Provide banks the opportunity to use brand new ATM machines.

Local shariah based Islamic credit card service.

Bangladesh Credit Card: Major Issuers:

Major Bangladesh credit card issuers are:

  • AB Bank
  • Agrani Bank
  • Al-Arafa Islami Bank
  • Bank Asia Limited
  • Dutch-Bangla Bank
  • Eastern Bank Limited
  • Grameen Bank
  • HSBC Bangladesh
  • Janata Bank
  • Mercantile Bank
  • Mutual Trust Bank
  • National Bank
  • Prime Bank
  • Standard Chartered Bank
  • United Commercial Bank
  • Uttara Bank
  • VANIK Bank
  • World Bank-BD

Bangladesh Credit Card: Essential Considerations:

In 2009, the Bangladeshi government withdrew the source tax applicable on credit card usage. According to expert opinion, this step will provide an essential thrust to foreign investment in the financial sector and will promote credit card transactions in the nation as well.

An individual should consider the following points while applying for a Bangladesh credit card:

  • Universal acceptance: Look for a credit card that is globally acceptable. International credit cards are particularly important for people who travel frequently to foreign countries, such as businessmen, sportspersons, political figures and celebrities. There are no extra charges for owning an international credit card.
  • Rewards program: Most credit card issuers offer a range of reward programs, such as air miles, cash back and shopping bonuses. Analyze your purchasing habits and then select an appropriate rewards program.
  • Annual fees: Look for a credit card with no annual fees. Mostly, standard and gold credit cards do not attract an annual fee, unlike their premier versions.
  • Interest rates: Research the market thoroughly for lower interest rates. Remember, most banks write their annual percentage rate (APR) in per month figures.

Card Offered by NBL:

In the modern world, banking sector is growing very much fast than any other business. The entire bank industry is emphasizing on improvement with the help of technology. Out of various technological outcomes “Plastic Money Market” is the most important one. Now a day a modern client cannot think banking without the facility of plastic cards.

Plastic money is just the replacement of cash. It is such an electronic module where all the information about the client/card holder and the bank are stored and can be executed by putting it in the Automated Teller Machine and at the Point of Sales (P.O.S.) terminal. Its not only convenient but also very reliable and safe. In this type of card inside a magnetic strip all the necessary information about the customers are kept by reading, which the ATM machine can deliver the required money of the customer. The entire process is so secured and swift that it is really a big asset for the banks and that is why all the banks are trying to improve the service that being provided through plastic cards.

National Bank limited started the plastic card services in 1997. Currently the bank is providing following categories of plastic cards:

Credit cards by NBL:

NBL Credit card is accepted in many merchant outlet around the world. The wide range of merchants include hotels, restaurants, airlines & travel agents, shopping malls and departmental stores, hospitals & diagnostic centers, jewelers, electronics & computer shops and many more.

National Bank limited is providing credit cards by obtaining principal membership from VISA/ Master Card. Currently the bank is offering two main categories of credit cards.

Local cards:

Gold local

Silver Local

International cards:

Gold Dual/International

Silver Dual / International

Features of NBL Credit Card:

NBL VISA dual card offers the facility to access both local and international spending limit through a single plastic.

An International / Dual card is accepted at millions of establishments across the world.

NBL VISA Credit Card offers free credit facility up to 45 days without any interest.

Through SMS Push Pull Service cardholder can enquire card account any time.

24 hours a day, 365 days a year worldwide service

50% Cash advance facilities on your credit limit.

Transfer of 80% amount of Local Card limit to any NBL A/c or pay order facility.

No Access limit charge

No hidden charge.

NBL is supporting the international payment association’s standard such as VISA and MASTER CARD.

NBL was also the first among domestic banks to introduce international Master Card in Bangladesh. In the meantime, NBL has also introduced the Visa Card and Power Card.


Originally named Master Charge, the program was created in 1966 by United California Bank, Crocker National Bank (both California banks whom were merged/acquired by Wells Fargo) Wells Fargo, and Bank of California (whom later became Union Bank of California). Master Charge was created to compete with BankAmericard (the Visa predecessor) whom was created shortly beforehand.

These banks, along with First National Bank (Louisville, KY) and Marine Midland Bank from New York (whom became HSBC) formed the Interbank Card Association, abbreviated ICA and created what was known as “Master Charge – The Interbank Card” in 1967. It was around this time the logo of two intersecting orange and red circles were adapted.

It was not until 1979 that the name was changed to MasterCard. During the nineties MasterCard acquired the UK based credit card issuer, Access Card, and its business became part of MasterCard. They also bought Europay in 2002, which was another credit card association. Both of these companies brand names were dropped and replaced with the MasterCard name.


Visa roots were founded in 1958. It was that year that Bank of America began the credit card program known as “BankAmericard.” Originally this concept was the idea of a bank manager as a way to more efficiently pay for smaller bills that were costing the bank vast amounts of time and money to process checks for. The BankAmericard system was intended to be used only statewide in California, but in 1965 Bank of America began licensing the system to other financial institutions. Within eleven years it was being offer across the globe.

Bank of America turned over control of the program in 1970 to the various financial institutions that were using it – creating an economic joint venture who would collectively own and operate it. The domestic operations were governed by a branch known as the National BankAmericard, or NBI. A separate branch was eventually established to handle the international licensing called IBANCO.

The blue, white, and gold logo flag was retained for the Visa logo. Previously, each country used their own version of this logo.

By 2006 over 21,000 financial institutions made up the Visa program. In October of that year it announced that some of it’s operations would be combined and turned into a publicly traded company. Although this IPO did not include all parts of the company, it had a very successful initial public offering. It kicked off by the market valuing the company at over $50 billion in 2008. Visa is traded under the symbol “V” on the New York Stock Exchange (NYSE).

Fees & Charges of Credit Card:

  Gold CardSilver Card
Principal Card
Annual/Renewal Fee:
Supplementary Card
Annual Fee/ Renewal Fee :
Replacement Card Fee :
Late Payment Fee :
Return Cheque Fee :
Personal Identification Number (PIN) Re-issuance Fee :
Excess Limit Charge :


5.4 Debit Card by NBL:

Banks introduced debit card namely NBL VISA power card which free from the burden of loans and interest. To get a power card non-requires having any account with NBL. Besides, bank has taken initiative for expansion of ATM services countrywide and with the introduction of on-line services customer will have easy excess to other techno based banking facilities. NBL issued 30000 debit card from the beginning.


It is a prepaid card.

Annual / Renewal Fee Tk. 350/= only.

May be issued and refilled from RFCD/FC Account.

Accepted at all VISA POS merchants.

Cash withdrawal at all ATM booths bearing VISA logo

Drawing of Cash:

  1. From NBL ATM’s – free of charges.
  2. From any other local banks ATM’s – Tk. 10 – 20
  3. From International Bank’s ATM Tk. 100

Requirement for Account Opening:

i.            Two copies of recent photographs.

ii.            Nominees photographs

iii.            Photocopy of National ID Card.

 ATM Location of NBL:






Satmasjid Road


761 , Satmashjid Road , DhanmondiDhaka


HossainTower , Next to over BridgeDhaka


97/1 , Gulshan Avenue




474, DIT Road


Karwan Bazar


BTMC Bhavan




48, Dilkusha C/A




29/1 , durgabari Road






Baragola bazar






Administrative Building



Terms & Conditions of NBL Credit Card:

All facilities made by NBL to the successful applicant who has been issued a credit card will have to follow the following terms and conditions, which are in force or may be amended from time to time by NBL, of which the applicant conclusively evidencing himself/herself by signing the application form while applying for his /her credit card and by his / her signature on the credit card issued to him/her and while using his / her card for any sort of transaction.


Valid card issued by NBL bearing the name VISA or MASTER CARD to the principal / supplementary card holder for the use of their own account remains the property of NBL all the times.

The card will be issued by NBL under the condition where, all the asked information on the Credit Card Application Form will have to be truly furnished and finally with utmost satisfaction of NBL.


CARDHOLDER means an applicant to whom a credit card has been issued bearing individual applicant’s name issued by NBL to operate a card account, which also includes supplementary cardholder.

CARD ACCOUNT means an account (the embossed card number) of the principal card holder against his/her issued card along with any supplementary one and which will be thoroughly observed and monitored by NBL.

CARD ACCOUNT STATEMENT means a statement or statement by NBL of the amount charged debited or paid to card account(s) stated therein. Card account statement shall have all details transactions of principal and supplementary cardholder included to the card account during the statement period.

CARD TRANSACTION means a payment whether for goods, services, other charges or cash advance availed or obtained through the use of card account number or the PIN of a card.

If the card is used by someone else other than the cardholder or supplementary cardholder with or without the permission or concern of the aforesaid  cardholders’, in case of that transaction all the liabilities will be put  into principal cardholders card account and which he /she has settle while paying the bills.

CASH ADVANCE means an advance of payment made in any currency or by travelers’ cheques or other forms by the card representing an amount of any currency.

MERCHANT means any person or entity with whom NBL or any member of VISA and MASTER CARD has a subsisting agreement relating to the use or acceptance of the card in payment to such person or entity whether for goods, services or charges incurred or to obtain cash advances from such persons or entity.

OUTSTANDING BALANCE in relation to any card account statement means the outstanding balance in favor of NBL as stated therein or where more than one outstanding balance is stated therein the total of all the outstanding balances stated therein.

PIN means personal identification number issued by NBL against the cardholder’s nominated card account, which will be used to access cash advance through ATM.

PRINCIPAL CARDHOLDER means the person(s) to whom a card is issued in his / her favor against his/her application but no Applications of minor, Insane, Lunatics, Dependants, Pupils, Insolvent, Bankrupt or Defaulters will be considered for assessment.

SUPPLEMENTARY CARDHOLDER means the person (other than the principal cardholder) to whom a card is issued on application of the principal cardholder whether alone or jointly with the principal cardholder and the full liability will be beard by the principal cardholder but if in case something goes wrong with the principal cardholder (death/abnormality etc.) then supplementary cardholder will be liable to pay the total outstanding of the issued card to the principal cardholder.

PAYMENT DUE DATE means the last date of payment and is usually 25 days from the date of statement, if not mentioned or specified on the card account statement. At least, the minimum payment due (excluding the overdue amount) must be paid by the cardholder with in the due date at any branch of NBL. Any overdue or over limit amount must be paid immediately.

COMPANY means when in used in relation to a cardholder shall include (i) whether the cardholder is the Director or the employee of the said company, (ii) whether the cardholder is the sole proprietor of such business enterprise, (iii) whether the cardholder is a partner of such firm.

Credit Limit of NBL Credit Card:

Credit Limit for Customers

The credit limit of NBL credit card is focused on different categories of income of people. There will be difference between Visa Gold Card and Visa Silver Card. Basically Visa Gold Card will be for an elite group while Visa Silver for the rest eligible people.

 Silver Card

Credit Limit



 Silver for International Use


500- 2000

Silver Card for Local Use Only


Silver Card for Dual Use



 Gold Card

Credit Limit



 Gold for International Use



Gold Card for Local Use Only


Gold Card for Dual Use



Credit Limit for NBL Employees

All employees down to Junior Officers will be entitled for NBL Visa Credit Card. Card limit for Local Card will be 1.5 times of current gross salary. The following is the criteria for entitlement of NBL Employees for Visa Credit Card.


Entitlement of NBL Visa Credit Card



Local Silver


Officer – SO

Local Gold



Local Gold



Local Gold


VP  – Above

Local Gold


Note: International Card facility will be provided incase of necessity.

Required documents for Credit Card: 



      TIN certificate / Income Tax Return Certificate

Salary certificate from the employer

Letter of comfort

Bank statement (last 6 months)

Passport Size photograph (2 copies)

Photocopy of passport (1 to 5 pages)

Security deposit (for international credit limit)

Proof Of Residence

Gas / Electricity Bill

Land Phone and Mobile Phone Bills

Ownership of car or any other vehicle (if applicable)

Other Banks Credit Card’s Bills (if Applicable)

Club Membership

Spouse’s Income

Other Income

Individual Cardholder / Service holder

6.5 Issue of International Credit Card:

International credit cards are issued against:

Int’l Card Issued Against Exporters Retention Quota Card

Int’l Card Issued Against RFCD (Resident Foreign Currency Deposit Account)

Int’l Card Issued Against Travel Quota Entitlement

Exporters Retention Quota:

As per Bangladesh Bank Guidelines for Foreign Exchange Transactions, exporters may retain7.5 % of repatriated FOB value of total exports as retention quota. International Card will be issued to maximum of 3 executives (as defined by Bangladesh Bank) against Exporters Retention Quota.

RFCD (Resident Foreign Currency Deposit Account):

As per Bangladesh Bank guidelines for Foreign Exchange Transactions, a Bangladeshi National can bring in up to USD5000 while returning from  abroad without declaration to Customs Authority in FMJ Form. The person ordinarily resident in Bangladesh can open RFCD A/C where foreign exchange brought in at the time of his/her return can be deposited. International Card will be issued against the balance available in RFCD A/C.

Travel Quota Entitlement:

International Card limit against Travel Quota will have the card limit as per yearly Personal Travel Quota of Bangladesh Bank. As per Bangladesh Bank Guidelines for Foreign Exchange Transactions, a Bangladeshi National can spend USD1000/= when traveling in SAARC Countries and Myanmar by air during a calendar year, within this annual limit, up to USD500 can be spent for overland travels to the aforesaid countries. For traveling in Non- SAARC countries a Bangladeshi National can spend maximum up to USD 3000/=. Personal Undertaking (as per Annexure -1) from the cardholder will be taken before card issuance for above compliance. Moreover software customization for the delineation of the quota for SAARC Countries and Non-SAARC Countries to be strictly followed. Lien on FDR will be as security before sanctioning Int’l Card Limit for Travel Quota Card.

Issue of Local Credit Card:

Personal guarantee:

A card can be issued to a prospect subject to obtaining an individual guarantee from an existing client of the bank. The guarantee makes the guarantor legally responsible to settle financial dues on behalf of the cardholder in case of default. To be a guarantor, the respective person requires following qualifications:

1.     The guarantor has been maintaining a credit card account for at least one year and has transacted the card at least for three months during the year.

2.     If the above criteria are not met, the potential guarantor still qualifies to be a guarantor provided he has capabilities to repay the dues and qualifies through the creditworthiness criteria

3.     The guarantor of the credit card is a valued client of NBL and transacting frequently with the bank.

Against Lien over Deposit / Financial Instruments:

   1. Letter of lien over deposit/financial instruments pledged as collateral

   2. Letter of authority in favor of the Bank authorizing encashment of the security.

 Promotion Mix:

Effective marketing communication is very important for any kind of organization. This component plays three vital roles: providing needed information & advice, persuading target customers of the merits of a specific product, and encouraging them to take action at specific times. NBL is trying to take different promotional steps to promote its various products along with credit cards.

Integrated Marketing Communication/Promotion Mix of National Bank: NBL blended its promotional tools as follows:

a) Advertising:

Advertising is any paid form of non-personal communication about an organization, products, and service, on idea by an identified sponsor. While opening new branch NBL do advertising for letting more people acknowledge.

Advertising platforms of NBL

Print & broadcast ads

Brochures & booklets


Symbols & loges


b) Sales Promotion:

It involves extra value or incentives to the sales force or ultimate customers and can stimulate immediate sales. NBL often goes for consumer oriented sales promotion. Sales promotion of NBL

Premium & Gifts

Fairs & Trade shows


Low-interest financing

rade in allowance

c) Publicity/Public relation:

Publicity usually comes in the form of a news story, editorial or announcement about an organization or it product/service. Credibility is the advantage of this medium. Public relation is the management function, which evaluates public attitudes. NBL goes for both publicity & public relation.

Charitable donations

Company magazines


Annual reports


d) Interactive/Internet marketing:

NBL is now playing more concentration on internet marketing. Interactive media allow for a back and forth flow of information whereby users can participate in and modify the form and content of the information they receive in real time. As Internet service bank cannot spread their interactive marketing in the country but they can provide online services.

e) Social Involvement:

By arranging different social activities NBL try to promote their different products to the society.

  • Rural Credit Program:

Under its rural Credit Program, NBL, with joint collaboration of the Barendra Bahumukhi Unnayan Katripakkha, has been providing improved technology, irrigation facility, agricultural equipments, etc. though disbursement of small credit to the farmers of three districts (Rajshahi, Naogaon, Chapai Nawabgonj) of Rajshahi Division. A total of TK.133.70 million has been disbursed among 24,473 farmers under the program up to 31 December 2009. The rate of recovery is 95%. Besides, NBL disbursed TK.144.78 million and TK.32.05 million among small and medium entrepreneurs respectively under the Agro based Industries & Technology Development Project (ATDP) for setting up of agro based industries and extension of agricultural technology.

  • Loan Portfolio Guarantee Scheme (LPGS):

Under the Loan Portfolio Guarantee Scheme (LPGS) of the USAID, NBL has been providing loans for setting up of small and medium scale industries. Under this scheme, the USAID has approved 1 million dollar equivalent to TK.69.15 million which will remain effective as risk guarantee for loans disbursed by NBL. NBL will be able to provide credit facilities up to 2 million dollar equivalent to TK. 138.30 million under the Scheme.

  • National Bank Foundation:

Out of its deep sense of responsibility toward the society, the Board of Directors of NBL established the National Bank Foundation in 1989. Under financial assistance of this Foundation, the National Bank Public School and College has been established at Moghbazar, Dhaka. At present, a total of 892 students are studying in the school section from class-1 to class-10, while there are a total of 234 students at the college section. A total of 107 students appeared at the SSC examination from this school in 2009, which came out 100 percent successful.

  • Sports and Cultural Activities;

NBL is always conscious and active to attend to its commitments to the society. NBL’s name has been intimately associated with sports and cultural activities in the country. NBL has been providing financial assistance to different institutions and sports organizations. To support expansion of culture, the Bank also provides patronization to cultural minded institution/individuals. Besides, the Bank stands as a friend by the side of helpless people in times of calamities. Thus, as a token of sincere fellow feeling and sympathy, NBL distributed winter clothes among the cold strike destitute people in northern region of the country from its own funds and with one day’s salary of the Officers and Executives of the Bank.

  • Assisting the rural economy

The bank is well aware of the socio-economic condition of the country. The bank has emphasized to expand its operation in rural areas to help boost the agriculture and rural economy. National Bank opened 15 branches in 2009 of which ten are located in rural areas. The bank provides collateral free loans to marginal farmers. The bank also undertook a pilot project to distribute loans among farmers and weavers of Sirajgonj district affected by twin floods in August 2008.

Moreover, the bank has introduced collateral free festival small business loan and NBL small business loan to cater the need of small traders. Beneficiaries of this scheme are mostly from rural areas. The schemes are playing important role in changing the living standard of the small businessmen.  

 Comparison of Charges & Fees:

Annual / Renewal Fee (Principal Card):





Principal Card


Classic/ Silver


Classic/ Silver


Classic/ Silver















Replacement Fee:





Principal Card


Classic/ Silver


Classic/ Silver


Classic/ Silver















Late Payment Fee:   





Principal Card


Classic/ Silver


Classic/ Silver


Classic/ Silver















 Cash Advance of Credit Limit:





Principal Card


Classic/ Silver


Classic/ Silver


Classic/ Silver






PIN Replacement fee:        





Principal Card





















NBL vs Other Banks: 

National Bank

Standard Chartered Bank

Prime Bank


Ready Cash Card of Janata Bank

Smart Card of Grameen Bank

ü Burst into the world of credit card in October 1997

ü Two kinds of Credit Card Silver and Gold.

ü For Silver Card one must have a income of minimum Taka 12,000

ü for Gold Card a person must have an earning of Taka 50,000

ü It is now dealing with about 23000 clients

ü Only 9 location of ATM Booth.

ü Cards are issued for location and international used.

ü First among domestic banks to introduce international master card in Bangladesh.

ü In 1997 the bank decided to launch full-scale card operation

ü The bank has Visa Silver, Master card Silver and Master card Gold card. MasterCard.

ü The minimum income requirement for Silver is Tk. 10,000

ü for Gold is Tk. 55,000 per month

ü It is now dealing with about 150000 clients.

ü Cards are issued for location and international used.

ü Prime Bank opened its business of credit card in November 1999.

ü The bank has Gold International and Gold Local

ü Silver International and Silver Local

ü For a Silver Card one must have income range over Taka 10,000

ü for a Gold Card a person is to have earning minimum Taka 55,000.

ü It is now dealing with about 40000 clients.

ü Vanik a Sri Lanka-Bangladesh joint venture financial institution, has been rendering credit card services in Bangladesh since 1998.

ü It has already crossed the mark of issuing more than 7,000 credit card.

ü VANIK issues two-type of credit cards – Gold and Classic

ü The minimum income requirement for Classic is Tk. 10,000 per month

ü For Gold is 50,000

ü The Ready Cash Card (debit card) was introduced in Bangladesh by Janata Bank in October 1999.

ü The Ready Cash cards will be used as an alternate to cash transaction.

ü The water and sewerage bills in the capital and Narayanganj can now be paid by ‘Ready Cash’ card through one stop service from July 1, 2001

ü An agreement to this effect was signed between WASA and American International (Bangladesh) Limited on May 16, 2001

ü The Mercantile Bank and Dhaka Bank have introduced Ready Cash Card in limited scope.

ü The Bank has taken up initiatives to bring the country’s rural masses, initially its members, under its IT network to facilitate their daily transactions and other business activities smoothly and bring about a qualitative change in their lifestyle through its ‘smart card’ project.

ü The ‘smart card’ will provide facilities like banking, utility and insurance to members of the Bank’s micro-credit programme.

ü Grameen Software Limited (GSL) signed a memorandum of understanding (MoU) with Information Technology Consultants Ltd. (ITC) on May 5,2001 to implement the project.

Market Share of NBL Credit Card:

Approximate number of issued credit card by different banks up to March, 2010

(These are approximated data, may vary due to quarterly updating by banks)


Total Number of Card Issued

Standard Chartered Bank


Brac Bank Limited


Prime Bank Limited


The City Bank


National Bank Ltd.


Premier Bank Limited


Southeast Bank Limited


Bank Asia


Dutch-Bangla Bank Limited




SWOT Analysis:

SWOT analysis is a classic strategic planning tool. Using a framework of internal strengths and weaknesses and external opportunities and threats, it provides a simple way to assess how a strategy can best be implemented. The tool helps planners be realistic about what they can achieve, and where they should focus.

A SWOT Analysis looks at Company’s:


Strengths – to build on


Weaknesses – to cover


Opportunities – to capture


Threats – to defend against

Analysis of Competitive Forces:

The analysis of overall attractiveness of the industry by evaluating the competitive forces is done by the Porter’s Five Forces Model. This model helps to forecast the profitability & growth by measuring various threats and to shape the strategy.

Potential Entrants is High:

National bank started issuance of Visa Credit Card from the beginning. At that time, there were five major competitors in this business. Now, there are as many as seventeen card issuing banks and financial institutions exist in market.  Many more (approximately 7) banks are planning to enter the market.

Bargaining power of Buyer is High:

As the buyer of credit card holders in Bangladesh has too many options in front of them, they have high bargaining power in case of holding and retain the card. They can easily switch to another bank’s card as the fees, charges, limits and other facilities with recent bank do not suits according to their preference.

Bargaining power of Supplier is Low:

Four Credit Card brand remain constant worldwide, although their strategies vary region to region:

  VISA card

  Master Card

The terms, conditions, fees & charges remain same for the banks that have the principal membership of each brand. So the supplier has lower bargaining power.

Threat of Substitutes:

 As holding of credit card creates liability and card holder has to maintain the repayment procedure, where the holding of debit card and other prepaid cards are much more easier, the use of those substitutes are increasing gradually.

Rivalry among Competitors:

 In credit card market a large number of multinational and local banks are participating. Strong competition exists among the leading banks and other banks in case of features, facilities, fees and charges, repayment flexibility. So strong contention occurs between the competitor banks.


  • NBL currently don’t have any strong marketing activities through mass media e.g. Television, TV ads play a vital role in awareness building.
  • NBL does not promote marketing activities itself for catering its services the public or to the business person.
  • There is not Reengineering Department for quicker customer service and implementation of newer products; moreover they have no customer care which helps the customer in case of any product or services.
  • NBL has introduced its ATM service. But it’s not so popular like other banks (EBL, DBBL, etc). Besides, NBL does not have enough own ATM booths to serve its customers.
  • NBL is not using older version of Data base networking in IT department. So they have to transfer data form branch to branch and branch to Head office by using floppy disk in case of some critical terms and its not a good system in modern banking.
  • Lack of sufficient financial data about NBL’s Credit Card and other information in NBL’s own websites. That’s why the users are not getting the proper updated information regularly.
  • Lack of variety of services in case of Credit Card.
  • The software that the bank is still using in case of maintaining card information and other management is not the latest one.
  • CIB report is not readily available from Bangladesh Bank.


From the analyses and findings of the study, it is obvious that there is a lot of market potential for NBL in the Credit Card Business and some areas of improvement are there also comparing to the existing issuers in the market. As we came to know from the market share analysis that 23,000 of the market size has already been saturated. But since the market yields a high growth potential and NBL having basic infrastructure and a larger client base this is the high time for the bank to enter into the business. Initially, it will require a huge investment, but the bank is financially sound to incur such amount of investment in new line of business.

The government of Bangladesh is taking initiative to invite foreign investors into the country and offering various incentives to encourage foreign investment. It is expected that Bangladesh will experience a heavy inflow of foreign companies investing in various sectors especially in IT and Gas and Oil Exploration and processing. This will give birth to various ancillary industries and services, which will ultimately increase the purchasing power of people. This factor enhances the chance of an upcoming growing population of the community who wants convenience of not carrying cash and the use credit card is the easiest way of doing so.


The specific and broad recommendations of the study are as follows:

Target Market

Profile of Prospective Cardholders Silver Cards

Salaried employees, who are

            4Upwardly mobile

            4 Earning a minimum monthly salary of Tk 10000

            4Aged 25 and above

4Working as executives/senior executives in large private and foreign companies

Gold Cards

Top executives, promoters and directors of multinational or large local companies who are the elders in the community and earn more than Tk 45000 monthly.

Service Delivery

Accurate Assessment of Credit Limit

Accurate assessment of the credit worthiness of the prospective cardholders should be ensured. There should be neither over assessment nor underassessment of the applicant. If under assessment is done then the applicant will be dissatisfied at the very first place and may refuse to be a cardholder at all. The applicants can be asked to propose his/her own credit limit and then to call for verification by the bank.

Card Delivery Time

The card delivery time should not be more than a week. But it should not be less than 5 days. Although NBL is claiming itself for providing the fastest service for card delivery, it is not a good strategy to adopt. The possibility of incorrect assessment of the Creditworthiness of the applicants would be very high then. This particular case of NBL is justified by the fact that 30% of its cardholders are dissatisfied with their credit limit.

Grace Period

Grace period of 45 days availed by PBL should be taken. Cash advance facility should not be less than 50% of credit limit; and, the E-cash ATM facility would be an advantage for the bank to provide ATM facility to its cardholders.

Charges and Fees

In case of determining the charges and fees the bank should follow the least price strategy, at least initially, while entering the market, to attract the customers. The charges may be gradually increased while staying competitive in the market.

Subsidiary charges should be reduced. Since the cardholders of any of the issuers, except those of NBL, are not at all satisfied with the interest charges, it should be fixed at 2% or less. The bank, thus, could enjoy an added advantage relative to others. Finally, by conducting a differential cost benefit analysis, an ultimate cost-mix should be developed.


4The bank should be selective in appointing merchants. In choosing merchant locations, fast food shop and restaurants should be given the priority as the study reveals that those are the most places that cardholders charge their cards. Shopping at chain stores today is becoming increasingly popular in our country and the number of fast food shops; convenient stores and chain shops are increasing day by day. So the bank should look for these places while selecting the merchant locations.

4Merchants should be providing products or services at fixed price so there will be no scope for charging extra 3%from the cardholders.

4Merchants should be encouraged to open an account (preferably savings) at a nearby          branch of the Bank, so that funds can easily be transferred as soon as authorization is confirmed rather than issuing cheques or pay order. So there will be minimum of fund disbursement time without any hassle; and merchant dissatisfaction will not be arisen.

4Merchant pricing should be competitive. Depending upon the volume of businesses (credit card transaction), merchants could be given discounts on merchant commission (which should be a maximum 2%).

Broad recommendations

4People today are short-term oriented. Waiver on interest charges and/or renewal charges will strike into minds of the cardholders and they will be more satisfied and encouraged to do more and more card transaction.

4 NBL should new and own ATM booths at least where there are their own branches or network.

4 NBL should bring out the latest software technology to make the database networking and management faster and where there have fewer complications so that the updates regarding different services will be available.

4Finally, heavy marketing and promotional campaign should be conducted to popularize the product and make people aware of the service.


  • Gorden E. and Natarajan K, Banking theory, law and practice
  • Business Research Methods – William G. Zikmund.
  • Bangladesh Bank monthly bulleting
  • §

  Annual Report of National bank Ltd.  2008-2009.

 Magazine Bank- Bima

 The Bank companies Act (Act XIV of 1991)


National Bank Limited