Contribution of The City Bank Limited in local Remittance Flow

General objective of this report is to find out the contribution of The City Bank Limited in local remittance flow. Other objectives are to know the forms in which local remittance flow transactions take place in  The City Bank and to know what forms of local remittance flow transaction customers do prefer. Finally to know the problems that customers face regarding local remittance and give recommendations on how to improve the local remittance operation of the bank.

Introduction

Local remittance transaction is an important activity of both private and govt. commercial banks now a day. Business activities inside the country are largely depend on money transaction through TT, DD, MT or online banking etc. Most of the people of our country depend on banking channel for safe money transfer. The City Bank Limited, one of the leading private commercial banks of our country, is also doing these activities from the very early of its establishment. This report is about local remittance services of The City Bank Limited.

Local Remittance:

The term ‘remittance’ is taken from the word ‘remit’ which means sending or transferring money from one place to another .Local Remittance means remitting money from one place to another within the country. Remittance of funds through banks eliminates the hazards in transportation of cash from one place to another for settling trade and private dues. Local remittance flow is indispensable part of local business.

Statement of the problem:

The City Bank Limited by its more than 84 branches all over the country is operating local remittance activities for the customers. Both business and individual perspective, thousands of remittance transaction took place in different form through city bank.

So our statement of the problem is – What is the nature of local remittance activities of city bank and how the bank satisfies its customers.

General Objective of the study:

Genera objective of the study is- to find out the contribution of The City Bank Limited in local remittance flow.

Specific Objectives of the study:

• To have a general view on city bank
• To know the forms in which local remittance transactions take place in The City Bank Limited
• To know what forms of local remittance transaction customers do prefer.
• To know about the competitiveness of The City Bank Limited with other banks
• To know the problems that customers face regarding local remittance.
• To give recommendations on how to improve the local remittance operation of the bank

Research Design

In this segment you will find details about the research design procedures, research type, sampling method, selection procedure, questionnaire development process, and the techniques of analysis.

This Research is Conclusive

This research is a conclusive one. In the research I developed some hypothesis. Those hypotheses were based on the graphical model. Through the research I have tested the hypothesis. I have developed questionnaire to collect primary data from the specific target group. Questions and answers options are clear and specific. The moderately large samples are representative of total target market. The data analysis I have done is quantitative. I have followed formal and structure research process and meet the deadline for the research. The findings are also conclusive and these can be used as input into decision-making process.

Target Population

The target population for this research is all the clients of The City Bank Limited. For limitations I have only done survey on the accountholders of Nawabpur Branch, The City Bank Limited.

Sampling Elements

The sampling element of this research is the customers who have participated in my questionnaire survey.

Extent of Sample

The extent of the sample is limited to Dhaka city. The time frame is the year 2008.

Sample Size

The survey is conducted among 80 people among both male and female.

Data collection method

Major portion of my data is collected through questionnaire survey. My primary method for data collection is survey, which gave me a picture of the overall level of customer satisfaction. This let me know whether the customers are really satisfied with the service that they receive from remittance service of The City Bank Limited (CBL).

I have prepared primary draft questionnaires based on my hypothesis. Whether or not the questions are valid depends on the significance of the questions related with the research questions and my hypothesis.

After preparing the final questionnaires I have conducted a survey among 80 people. This has given me an idea about the questions and how much effective those questions might be in giving me relevant data.

Sampling technique

The ultimate goal of this report is to find out the level of satisfaction of the customers of The City Bank Limited (CBL) and what drive them to continue using it in future. In order to do that, I distributed my finalized questionnaire to the customers. Since, many of the respondents were participating during their regular office hours sometimes I had fill up the questionnaire for them, I had to fill up the questionnaire by my self. I had to go to the customers one by one and explain the questions to them in order to fill up the questionnaire.

Questionnaire Development

I have prepared a questionnaire to find out the specific answers for my research questions. The questionnaire sample is attached in appendix section. In the questionnaire I have demographic questions like age, sex, income range, profession.

Strategies Of The City Bank Limited

CBL believes in the practice of Market-Oriented Strategic Planning, developing and maintaining a viable fit between the organization’s objectives, skills and resources. The aim of such approach is to shape and reshape the bank’s businesses and services so that they yield target profits and growth.  The strategic planning of CBL consists of two organizational levels, which are

• Location Based Strategy
• Business Level Strategy

Location Based Strategy

Since the growth and profits of banking business largely depend upon the locations of branches where large concentration of other businesses and industries are involved, CBL Main Strenghth is its location based strategy. The 84 branches of CBL are divided into five different regions, which are

1. Dhaka Division comprise 30 branches.
2. Chittagong Division, comprising 17 branches.
3. Comilla Division, comprising 7 branches.
4. Sylhet Division, comprising 10 branches
5. Bogra Division, comprising 20 branches

The concentration of businesses and lifestyles of the people are not the same in these five areas. So, the strategies of the five areas differ from one another; but they are designed with distinctive local touch. Head office constantly monitors the progresses of all the five areas. The bank is not interested in launching more branches. Currently CBL is focusing in strengthening the existing branches.

Business Level Strategy 

The business strategy of the Bank is to strengthen its retail business, following a conservative lending approach. But the Bank’s major portion of the profit generates from its Retail banking and SME Banking.

 Retail Banking Strategy

The City Bank Ltd. recently has started its journey in Retail Banking. More than 700 staffs have been trained so far on the vital concepts of service excellence and sales. In the product side ATM fleet has been launched, Debit card and credit has been issued, SMS Banking has been offered, 3 new deposit products have been introduced, manifold in the endeavor to build a Retail Banking brand namely “City Retail Happiness Counts”.

SME Banking Strategy

Considering the potential growth and demand situation the City Bank Limited has extended credit facilities to small and medium enterprises through SME Banking in the year 2006 and 2007.A separate division has established in the Head Office with collaboration of all branches to process and handle loans under SME for attaining a respectable market share and successful operation of the scheme. The bank has organized several training program for development of adequate human resources.

Products and Services

Since commencement of banking operation, The City bank Limited has not yet only gained enormous popularity but also been successful in mobilizing deposit and loan products. The bank has made significant progress within a very short time period due to its dynamic management and introduction of various consumer-friendly loan and deposit products. All the products and services offered by the bank can be classified under two major heads:

• Deposit Products
• Monthly Benefit Deposit Scheme
• Fixed Deposit Scheme
• Saving Deposit Account(Three Stage Saving Scheme)
• NFCD (Non Resident Foreign Currency Deposit Account)
• NITA (Non Resident Investor’s Taka Account)
• Loan Products
• Consumers’ Credit Scheme
• Lease Finance
• Hire Purchase
• Small and Medium Enterprise Credit Scheme (SME)
• Loan Against Shares and Securities
• House Building Financing Scheme
• Financing Scheme For Contractors
• Computerized Online Banking with “Finacle Core”

City Bank VISA Credit Card

• Working Capital Financing
• Import Financing
• Export Financing
• Industrial Financing
• Other Service

Consistent with the modern edge and competing in the competitive market, City Bank Limited has introduced some innovative banking services that are remarkable in a country like Bangladesh. The services offered by the bank are as follows:

On-line Banking

The bank has set up Wide Area Network (WAN) across the country within its all branches to provide on-line branch banking facility to tits valued customers. The service named “Finacle Core” has opened up several possibilities of improved customer services. Under this facility client of one branch are able to do banking transaction at any other branch of the bank. The bank hosted its Web Site (www.citybank.com) to facilitate dissemination of information about the banking services and facilities of City Bank Limited all over the world.

Information Technology in Banking Operation

City Bank Limited is providing comprehensive range of banking services with utmost care and efficiency to its customers. Auto Teller Machine is used to count money properly to save client’s valuable time as well. The customer can draw money/cash from their account within a minute.

SWIFT Service

City Bank Limited is one of the first few Bangladeshi Banks to obtain membership of SWIFT (Society for Worldwide Inter-bank Telecommunication). SWIFT is a members’ owned cooperative which provide a first and accurate communication network for financial transactions such as Letter of Credit, Fund Transfer etc.

Maintenance of Accounts of The City Bank Ltd

Account Opening Section

To establish a Banker and customer relationship Account opening is the first step. Opening of an account binds the Banker and customer into contractual relationship. But selection of customer for opening an account is very crucial for a Bank. Indeed, fraud and forgery of all kinds start by opening account. So, the Bank takes extremely cautious measure in its selection of customers.

Types of Account

1. Current Account.
2. Savings Account.
3. Fixed Deposit Account.

Procedure to open an Account

For opening an account, at first the prospective account holder will apply for opening an account by filling up account opening form. Account opening form consists of the name of the branch, type of account, name of the applicant(s), present address, permanent address, passport number (if any), date of birth, nationality, occupation, nominee(s), special instruction (if any), initial deposit, specimen signature(s) of the applicant(s), introducer’s information etc.

The prospective customer should be properly introduced by the followings:

• An existing customer of the bank.
• Officials of the bank not below the rank of Assistant Officer.
• A respectable person of the locality who is well known to the manager or authorized officer.
• Two copies of passport size photograph duly attested by the introducer.
• Signature of the prospective account holder in the account opening form and on the specimen signature card duly attested by the introducer.
• Then the concerned authority will allocate a number for the new account.
• The customer than deposit the “initial deposit” by filling up a deposit slips. Initial deposit to open a current account in PBL is Tk. 1000.00 and saving account is Tk. 500.00.

After depositing the initial deposit, the account is considered to be opened. CBL maintains all of its accounts in computer. After depositing the initial deposit, CBL records it in the computer by giving new account number. Then it issues cheque book requisition slip by the customer. Then it distributes all relevant papers to respective department.

Activities and papers necessary for opening an account

Joint Account

If the account is a joint account, then the joint account holder should submit a declaration and operational instructions of the account along with their signature. The declaration is

“Any balance to the credit of the account is and shall be owned by us as joint depositors. Any liability whatsoever incurred in respect of this account shall be joint and several.”

Partnership firm

The following documents have to be submitted for preparing an account of a partnership firm:

(a) If the partnership firm is a registered one, then one copy of registration forms.

(b) If not, then a copy of certificate from the notary   public.

Limited Company

For the opening of an account of a limited company, following documents have to be submitted:

• A copy of resolution of the company that the company decided to open an account in the City Bank.
• Certified true copy of the Memorandum & Articles of Association of the Company.
• Certificate of Incorporation of the company for inspection and return along with a duly certified Photocopy for Bank’s records.
• Certificate from the Registrar of Joint Stock Companies that the company is entitled to commence business (in case of Public Ltd. Co.  for inspection and return) along with a duly certified Photocopy for Bank’s records.
• Latest copy of balance sheet.
• Extract of Resolution of the Board/General Meeting of the company for opening the account and authorization for its operation duly certified by the Chairman/Managing Director of the company.
• List of Directors with address (a latest certified copy of Form-XII)

Deposit Schemes of City Bank Limited

Bank is the largest organization of mobilizing surplus domestic savings. For poverty alleviation, we need self-employment, for self-employment we need investment and for investment we need savings. In the other words, savings help capital formations and the capital formations help investments in the country. The investment in its turn helps industrialization leading towards creation of wealth of the country. And the wealth finally takes the country on road to progress and prosperity. As such, savings is considered the very basis of prosperity of the country. The more the growth of savings, the more will be the prosperity of the nation. The savings rate in Bangladesh is one of the lowest in the world rate of domestic saving being 17.78 %. In order to improve the savings rate, Financial Institutions responsible for mobilization of savings should offer attractive Savings Schemes so that the marginal propensity to save increases. The savings do not, of course, depend only on the quantum of income but largely depend on the habit of savings of the people.

CBL has formulated the following Savings Schemes:

• Monthly Benefit Deposit Scheme,
• Fixed Deposit Scheme,
• Three Stage Savings Scheme,

Monthly Benefit Deposit Scheme

This is a Deposit Scheme where the depositor gets a fixed amount of profit every month without disturbance to the principle. The Scheme is designed to attract:

The retirement benefits of service holders.

• The investment of Wage Earners who want to pay a fixed amount monthly to their family’s dependents in Bangladesh from the profit of their investment.
• The deposit of those persons who intend to meet the monthly expense of their family from the income of their deposit.
• Investment of fund of Trusts and Foundations which award monthly Scholarships / Stipends to students.
• Trusts and founders or other associations, which award monthly scholarship/stipends to students etc.

Terms & Conditions

• Payment of monthly profit shall start from the subsequent month after a  clean minimum gap of 30 days from date of deposit.
• Normally, the deposit will not be en cashable before maturity. But if any depositor intends to withdraw his deposit before maturity, the following rules will apply:
• No benefit including interest shall be allowed for premature encashment within one year.
• If the accounts/ deposits are closed/ encased after one year of its opening, benefit shall be allowed on the deposits at exiting savings deposits rate.
• If the amount of monthly profit already paid exceeds the amount payable at exiting savings rate, the difference shall be realized from the principal deposit amount, if and when necessary.
• If the client fails to deposit installment for consecutive 3 months, in this case the scheme will be closed for adjusting loan.
• In case of death of a depositor, the A/C shall cease to be operative and the amount deposited so far shall be paid to the nominee, as mentioned in the account opening form, and in absence of nominee, to the legal heirs of deceased as per rules in force.

 Three Stage Savings Scheme (TSSS)

For regular income people it is a good opportunity to deposit money for long term in high interest rate. Details are:

Term                   :   2 years/4 years/6 years

Monthly deposits:  Tk.500-Tk.5000

An example of total sum after maturity (where monthly installment Tk.500):

Table: Saving scheme interest rate

Utility Services Scheme

Like any other country of the world, the people living in the urban areas of our country lead a very busy life. Times are very valuable to them. Despite this, they are to waste their valuable time at the counter of.  Different Banks and other Institutions for payment of their monthly bills of different utility services like Electricity, Telephone etc. They, as such, face enormous difficulties for payment of their monthly bills in time. Such inconveniences of the urban people can be removed by making an arrangement to collect all the bills of various utility services at one Point.

Scope of Services: – The scheme is designed to provide all the required services to the customer in making payment of their following bills on their behalf from the counter of the Bank:

• To pay Electricity Bills
• To pay Telephone Bills
• To pay Gas Bills
• To pay WASA Bills
• To pay Insurance Premium
• To pay House Rent
• To collect House Rent
• To pay Municipal Taxes
• To collect Pension Money
• Issuance and Renewal of License of TV, Radio, etc.

Objectives

• To help the customers in payment of their different utility Bills in time and thereby relieve them of their worries and save their valuable time.
• To help different corporations/ organizations in timely collection of their Bills.
• To help the senior citizens of the country in collecting their Pension Money every month.
• To extend financial assistance to the customers by way of overdraft in timely payment of their Bills.

Deposit Rate Offered by CBL

Table: Deposit Rates

Account Closing

How to Control the Account Closing

Ensure that:

• Application for closing a/c received and signature verified.
• Account closing be referred to manager
• Unused cheque leaves are taken back and destroyed physically and system.
• No liability.
• No legal instruction.
• All the instruction is checked and no instruction remains unattended.
• All charges are realized.
• A/C “closed” is marked in AOF.
• “Close AOF” is duly filed in the closed file.
• Close marking in red color in a/c opening register is done and destroyed cheque must be mentioned.

After debiting all charges a pay slip is issued to debit the account for final payment to the a/c closer.

Cheque Book Issue

Ensure that:

• Cheque book issue register is maintained properly.
• Requisition slip properly filled in and signature of the a/c holder duly verified and found correct.
• Account is not inoperative.
• All Cheque leafs are used in seriatim.
• Cheque book against client application (other than requisition slip) is issued after proper verification of the signature.
• Approval of manager is obtained to issue cheque book in case of loss of requisition slip.

Stop payment

Ensure That

• Instruction of stop payment is confirmed by a written application of drawer. In case of the instruction received by telephone or third party a formal application by drawer is must date and time.
• Signature of the applicants is verified and found correct.
• Stopped Cheque register is properly maintained.
• Immediate action is taken as per rules on receipt of the application from the account holder for stop payment of a Cheque.
• Cheque in question has not been paid. If paid advise the account holder on the day of receipt of the application.
• The particulars of stopped cheque are recorded in the respective ledger with time and date of receipt of application.
• Special warning for security system is adopted in case of computer system.

Clearing Section

According to the Article 37(2) of Bangladesh Bank Order, 1972, the banks, which are the member of the clearinghouse, are called as Scheduled Banks. The scheduled banks clear the cheque drawn upon one another through the clearinghouse. This is an arrangement by the central bank where everyday the representative of the member banks gathers to clear the cheque. Banks for credit of the proceeds to the customers’ accounts accept Cheque and other similar instruments. The bank receives many such instruments during the day from account holders. Many of these instruments are drawn payable at other banks. If they were to be presented at the drawee banks to collect the proceeds, it would be necessary to employ many messengers for the purpose. Similarly, there would be many cheque drawn on this the messengers of other banks would present bank and them at the counter. The whole process of collection and payment would involve considerable labor, delay, risk and expenditure.

All the labor, Risk, delay and expenditure are substantially reduced, by the representatives of all the banks meeting at a specified time, for exchanging the instruments and arriving at the net position regarding receipt or payment. The place where the banks meet and settle their dues is called the Clearinghouse.

Activities of the Section:

(a) Preparation of Clearing Outward and Inward Lodgment and record maintenance of the same.

(b) Batch posting as and when required.

On receipt of instruments, the same is endorsed here. Then clearing section will sent IBDA to head Office for clearing purpose and on receipt of IBCA from Head Office amount is credited to customers account and vice versa. If the instrument is return then the same is given back to the customer.

Collection Section:

Checks, drafts etc. are drown on bank located outside clearing house are sent for collection. Nawabpur Branch collects its client’s above-mentioned instruments from other branches of CBL and branches other than CBL. In case of out ward bills for collection customers account is credited after finishing the collection processor. And in case of in ward bills customers account is debited for this purpose. So it place dual role as follows:

• Collecting Banker
• Paying Banker.

Activities of the Section:

• Preparing of Outward and Inward Collection Item.
• Inter-Branch Transfer.
• Batch posting and checking as and when required.
• Other works as and when require.
• Collection is done when

(i) Paying Bank is located outside Dhaka City.

(ii) Paying Bank is other branches of PBL situated inside Dhaka City.

• Paying Bank is outside Dhaka City:
• CBL sends Outward Bills for Collection (OBC) to the concerned paying bank to get Inter Bank Credit Advice (IBCA) from paying Bank. If the paying bank dishonours the instrument, the same is returned to principal Branch.

The Paying Bank of their own branches inside Dhaka City:

Collection Department sends transfer delivery item to other branches of same bank situated inside Dhaka City. Upon receiving IBCA customer’s a/c is credited.

Functional Divisions of CBL

The Bank accomplishes its functions through different functional divisions/ departments. The divisions/departments along with their major functions are listed below:

Financial Division

• Financial planning, budget prepartion and monitoring
• Payment of salary
• Controlling inter-branch transaction
• Disbursement of bills
• Preparation of financial reports and annual reports
• Preparation/Review of returns and statements
• Maintenance of Provident Fund, Gratuity, Superannuation Fund
• Reconcilliation

Credit and risk management

• Loan administration
• Loan disbursement
• Project evaluation
• Processing  and approving credit proposals of the branches
• Documentation, CIB (Credit InformationBureau) report etc
• Arranging different credit facilities
• Providing related statements to the Bangladesh Bank and other departments

Human Resource Division (HRD)

• Recruiting
• Training and development
• Compensation, employee benefit, leave and service rules program and upgration
• Placement and performance appraisal of employees
• Preparing related reports
• Reporting to the Executive Committee/ Board on related matters
• Promotional campaign and press release

Information Technology (IT) Department

• Software development
• Network management and expansion
• Software and Hardware management
• Member banks reconcilliation
• Data entry and processing
• Procurement of hardware and maintenance

Branches Control & Inspection Division

• Controlling different functions of the branches and serch for location for expansion
• Conducting internal audit and inspection both regularly and suddenly
• Ensuring compliance with Bangladesh Bank (BB), monitoring BB’s inspection and external audit reports

Retail Division

• ATM card, Credit and system operation and maintenance
• SWIFT operation
• Credit Card Operation (Proposed)
• Customer and vendor relationship

Earning Per Share

Earnings stood at Tk. 22.22 per share in the year 2007 while it was tk. 75.13 in the preceding year. Increase in number of share through issuance of bonus share and decrease in net profit after tax due to charge of higher provision resulted the decrease for earning per share.

Deposit

Banks deposit grew by 29 percent in 2007. Customer deposits of the Bank grew by 28 percent. Total deposit stood at Tk. 39572 million with an increase of Tk. 8924 million. the deposit position in the year 2005 was Tk. 30648 million. The growth was supported by branch network and high standard service provided to customers. For last five years the deposits are given below with diagram-

Loans Advances

The portfolio of loans and advances at end of the year 2007 stood at Tk. 30789 million with an increase of Tk. 7463 million growth was 32 percent. The outstanding amount at the same period of previous uear was Tk. 23326 million.

Import

The import business including local L/Cs of the bank increased to TK 32096 million in the year under review from TK 21363 million of the previous year. Increase in the import business is 50% compare to the previous year

Export

The volume of export business including local bills rose to TK 28211 million from TK 18219 million in 2006showing a growth of 55 percent. Ready Made Garments, frozen food and leather continue to remain major export items in 2007.

Foreign Remittance

In the year 2007 CBL has established new inward foreign remittance relationship with 8 exchange houses located in UK, UAE, Oman and Qatar which helped the Bangladeshi expatriates to remit their foreign currency through proper banking channel. The bank handled foreign remittance business amounting BDT 6780 million directly through 14 exchange houses in the year 2007. The growth of the foreign remittance business in the year 2006 is 104 percent compare to the previous year.

Investment Operation

Bank was involved in utilization of surplus funds through investment in treasury bills, bonds, government approved securities, debentures shares and money at call and short notice. Investment in government securities like treasury bills and treasury bonds was Tk. 2945 million and Tk. 2707 million respectively. Increase in these heads were Tk. 642 million and Tk. 2036 million respectively. Investment in private sector share, debenture, and bond increased by Tk. 86 million and stood at Tk. 531 million as at 31^st December,2006. Growth under this head was 19 percent.

Capital Market Services

In an effort to promote industrialization and economic development of Bangladesh, City Bank considered it appropriate to seize this opportunity by playing its due role in capital market related activities. Accordingly the bank obtained Membership of Dhaka Stock Exchange (DSE) for operating a brokerage house. To provide infrastructural facilities for Local & Nonresident Bangladeshi (NRB) Investors through this brokerage house and all other capital market related activities, a new Division namely ‘Capital Market Services Division’ has been created and a Consultant with proper background has been appointed.

_{Analysis and Findings}

Introduction of research topic:

As my study is about local remittance service of The City Bank Limited, obviously customers viewpoint is very important in this regard. The City Bank Limited provides local remittance service to its customers through various forms named through TT, DD and Online Banking.

Remittance through TT:

Telephonic Transfer or TT is a very common form of remittance transaction. People from different locations transfer money over telephone according to the need.

Remittance through DD:

Demand draft or DD is another form in which money is remitted. Everyday, thousands of people remitting their money through DD.

Remittance through online banking:

The bank has set up Wide Area Network (WAN) across the country within its all branches to provide on-line branch banking facility to tits valued customers. The service named “Finacle Core” has opened up several possibilities of improved customer services. Under this facility client of one branch are able to do banking transaction at any other branch of the bank. The bank hosted its Web Site (www.citybank.com) to facilitate dissemination of information about the banking services and facilities of City Bank Limited all over the world.

Analysis and findings of questionnaires

Question: What kind of account do you have?

This question was asked at the very first level. After collecting data, it is found that maximum respondents gave their opinion for CD account. After that , SB account was the second one. Rest of the respondents had given their opinion on others.

The information are showed in the following table by percentage:

Findings:

1. The leading position of CD account shows that people have a real attraction on CD account. The reason is its profit rate and the rate of return.
2. SB is in the second position (31.25%) because of its flexible character.
3. Some people have Three Stage Savings,  a popular saving scheme and loan accounts which is in third position.
4. It is also a fact that there is 25% FDR account. The reason is that for opening an FDR account, a huge amount of money is needed.

Question: 2 what number of accounts do you have in this bank?

This question was asked at the second level to know the number of respondent’s account. Most of them have single account. Some persons have two accounts. There are one or two persons who have more than three accounts.

Findings:

1. Single account holders are huge in number (50%). Maximum customers are satisfied with a single account.
2. The are some respondents who have two accounts (27.5%). In this case, it has been found that one is Current Deposit (CD) and another is Savings Bank (SB) account.
3. 18.3% of people have three accounts in number.
4. A few persons have more than three accounts (3.75%). Most of the cases they are local corporate people.

Question:3 What type of account holder you are?

This question was really asked for knowing the position of account holder

Findings:

1. Very few persons are corporate account holder (18.75%).
2. 28.75% of total respondents are  joint account and other accounts
3. Maximum corporate account holders have CD account.
4. The reason behind having CD account is that they take money two or three times in a from the bank. The flexible CD account is potential for them.

Question: What type of customer you are?

This question was asked to know the type of customers

Findings:

1. Very old types of customers are 37.5%. It is an important fact that they are the customers from the starting of the branch.
2. Many customers are old in nature (35%).
3. New customers are 25%

The important thing is that old customers are important and large portion in that branch.

Question: Do you have any account in other banks?

In response to this question, a formidable portion of respondents said that they have accounts in other banks.

Finding:

1. Most of the respondents have account in other banks.
2. They have the experience of getting service from two or more than two  banks

The important thing here is that having account in others banks they can compare the service given by The City Bank Limited with others.

Question: How do you compare The City Bank Limited with other Banks?

Findings:

1. Most of the respondents (53.75%) are satisfied by the service given by The City Bank Limited. Rest of them are expressed good (26.25%) and satisfactory (13.75%) according to their opinion.
2. 6.25% person in the survey who are unsatisfied.
3. The important thing is that the satisfied customers of The City Bank Limited.

There is a nice and positive feature of good service given by The Bank.

Question: How do you compare the customer care by The City Bank Limited with others?

This question was asked to compare the service of The City Bank Limited with others.

Findings:

1. 78.75% percent  of customers are satisfied on the given service by The City Bank Limited
2. The reason behind this is that customers really want smooth type of service what they get from the bank.

The important thing here is that there is general and unsatisfactory comment on the customer service which is very much positive from the bank’s progress.

Question: Have you remitted money in this bank?

Findings:

1. Most of the respondents here remitted money in or from the branch (91.25%).
2. According to them The City Bank Limited is reliable for remitting money.

Here an important thing is that the rate of remittance. The amount of remitted money is also satisfactory.

Question: In which form you have remitted money?

The intension of this question is to find out favorite medium of remitting money.

Findings:

1. The favorite form of remitting money is Telephonic Transfer (TT) that is about 51.25% After that Demand Draft (DD) and others are used.
2. TT is very much popular for its easy processing and least cost advantages.
3. Maximum TT based remittances are used for business purposes.

The important thing here is that the branch is popular for remitting money.

Question: To where or from where the money was remitted?

This question is asked to know the intensity of remitting money inside Dhaka or outside Dhaka

Findings:

1. Maximum respondents are remitted money inside Dhaka.
2. Few are also remitted money outside Dhaka from inside.
3. Remitted money inside Dhaka related maximum with business dealing.

The important thing noted here is that the swift remittance transaction.

Question: What type of service you have got?

This question was asked to measure the level of satisfaction on remittance service

Findings:

1. Maximum respondents told the service as excellent in their view. The rest of others told it as very good.
2. The responses denote the maximum level of customer satisfaction on remittance service that is maintained.

The important thing is that there is no scope of having question about customer satisfaction.

Question: For what purpose the remitted money used?

Findings:

1. The large portion of remitted money is used in business purposes
2. After that some people remitted money for their own individual purposes.

The thing that is noted here that the place where the branch is located is known as business area. So remittances are mostly used for business purposes.

Question: Are you satisfied on the remittance service given by The City Bank Limited

Findings:

1. Maximum respondents said that they are satisfied on the remittance service.
2. It is positive that limited respondents said they are not satisfied on the given service.

From the above information we can know the success of remittance service by The City Bank Limited.

Question: How do you evaluate the remittance service given by The City Bank Limited?

Findings:

1. Like above maximum respondents given their opinion as very good.
2. The others commented as good and satisfactory about their service.

Recommendations:

After a long discussion and research, I am giving the following recommendations for further improving the remittance service of The City Bank Limited:

1. The bank’s current service is satisfactory. For maintaining the current success and for achieving comparative advantages, it has to be more customer oriented.
2. Now a days people prefer remitting money through online banking. Though the branch ( Nawabpur Branch, CBL) recently came under the coverage of online banking, it is necessary to inform their current customer the facilities of online banking
3. Many people still prefer TT or DD for remitting money despite the dominance of online banking. So the service of TT and DD should make smoother for customer loyalty.
4. The number of ATM booths of The City Bank Limited is not satisfactory relating to its competitors. So ATM booths should be increased in number.
5. SMS banking is an important innovation now a days. The City Bank Limited should be more concern about SMS banking for promoting their efficiency.
6. It is a good sign that the bank is now using Finacle banking software for fast activities. The effort will be successful when all branches will apply it.
7. Location and infrastructure of the branches should be improved further. Still there are branches which are not that type of modern that is expected. So the management of The City Bank Limited will have to give more concern about this.
8. The bank should be more sincere whether any type of customer facing any hassle or not.

Conclusion:

Success of any service providing organization depends on the quality of service given by that organization. The City Bank Limited by it’s remittance service and other banking facilities already got the reputation of customer oriented bank. If my recommendations take consider, the bank will get the topmost position of private commercial banks with a very short period of time.

Appendices

Questionnaire

This questionnaire will be used only for the report purpose. Confidentiality must be strictly maintained. 

Name of respondent: …………………………

Age:……….

General Information

What kind of account do you have?

a) Current Deposit (CD) b) Savings Bank (SB) c) Fixed Deposit Receipt (FDR) d) Others

What number of accounts do you have in this Bank?

a) One b) Two c) Three d) More than three

What type of account holder you are?

a) Corporate b) Individual c) Joint  d) Others

What type of customer you are?

a) Very old b) old c) New                          d) Others

Do you have any account in other banks?

a) Yes b) No

If yes, you are requested to answer question no 6-7. If no, please go to question no. 8

How do you compare The City Bank Limited with other banks?

a) Very good b) Good c) Satisfactory                d) Not satisfactory

How do you compare the Customer Care given by the City Bank Limited with others?

a) Satisfactory b) General c) Not satisfactory

Information related with remittance

Have you remitted money in this branch?

a) Yes b) No

If yes, please answer question no. 9-14. If no, please go to question no. 15

In which form you have remitted money?

a) TT b) DD c) Pay Order d) Others

To where or from where the money was remitted?

a) Inside Dhaka b) Outside Dhaka.

What type of service you have got?

a) Excellent b) Very good c) Good d) Not good

For what purpose the remitted money used?

a) Corporate b) Business        c) Individual                     e) Others

Are you satisfied on the remittance service given by The City Bank Limited?

a) Yes b) No

How do you evaluate the remittance service given by The City Bank Limited with other banks?

a) Very good b) Good c) Satisfactory                        d) Not good

Suggestive Information

“The City Bank Limited maintains a good and caring relationship with it’s customers”- Do you agree with it?

a) Yes b) No

Please give further suggestions for improving the service quality of The City Bank Limited.