Introduction
All over the world the dimension of Banking has been changing rapidly due to Deregulation, Technological innovation and Globalization. Banking in Bangladesh has to keep pace with the global change. Now Banks must compete in the market place both with local institutions as well as foreign ones. To survive and thrive in such a competitive banking world, two important requirements are development of appropriate financial infrastructure by the central bank and development of “professionalism” in the sense of developing an appropriate manpower structure and its expertise and experience. To introduce skilled Banker, only theoretical knowledge in the field of banking studies is not sufficient. An academic course of the study has a great value when it has practical application in real life situation. So, I need proper application of my knowledge to get some benefit from my theoretical knowledge make it more tactful.
1. Agrani Bank’s interior decoration is visually appealing
2. Agrani Bank is cooperative to customers in claim settlement
3. You feel safe in your transactions with Agrani Bank
4. Agrani Bank uses modern technology to serve the customers
5. Agrani Bank provides updated Credit and Deposit scheme to the customers
6. Agrani Bank provides error less account service
7. Agrani Bank provides hassle free services
8. Agrani Bank Provides services within the time promised
9. The behavior of employees of Agrani Bank is satisfactory
10. Agrani Bank’s physical facilities are visually appealing
Objective of the Study
The objectives of the study are mentioned as beneath.
a) Primary Objective: Primary objective of the report is fulfilling the course requirement for Completion of the degree of BBA program of ASA University Bangladesh.
b) Secondary Objective: Beside the primary objective, there are some other objectives which are equally important. The prime objective of the study is to examine:
- To know the expectation of customers of Agrani Bank ltd.
- To get introduced with the idea of “Service Quality” of Agrani Bank Ltd.
- To assess the level of importance, the customer of Agrani Bank put across various service attributes and also to determine how well Agrani Bank is satisfying the customers on those service grounds and different service quality dimensions.
To come up with possible ways of improving service quality and efficiency that will lead to bring more customer satisfaction for Agrani Bank Ltd.
Conceptual Framework
The conceptual framework of customer satisfaction depends on the effectiveness of internal control variable. This is achieved by the presence and proper functioning of all the predefined independent variables in relation to each category of the organization’s objectives. Proper functioning of independent variables provides reasonable assurance of proper functioning of dependent variable. Then the organization realizes preset objectives of efficient and effective operations, generation of accurate, reliable and informative financial reports that comply with relevant legal and regulatory requirements.
The study involves investigation of customer satisfaction followed in the Agrani Bank Ltd. The study uses the details of variables of different components of customer satisfaction techniques using the primary data collection method, particularly by questionnaire, observations and face-to-face communication and document analysis.
I have uses summated (Likert) Scale in the measurement of degree of achievement and implementation of customer satisfaction. It is a scale, usually of approval or agreement, used in questionnaires. As per Likert’s Model we have given highest score (5) for “Always” and least score (1) for “Never” except management philosophy and operating style.
SERVQUAL MODEL
Definition: Servqual is a method for measuring service quality. The method was created during the 1980’s as part of research projects within the field of marketing. The model is based on the premise that the best way to measure service quality is to base it on the customer’s experience of quality. In Servqual , quality is defined by the gap between what a customer expects and what the customer perceives. Servqual breaks service quality down to five basic dimensions; reliability, assurance, tangibles, empathy and responsiveness, often referred to as rater .
The key survey dimension the five Servqual dimensions are:
1) Responsiveness – Willingness to help customers and provide prompt service 2) Assurance- Knowledge and courtesy of employees and their ability to convey trust and confidence 3) Tangibles – Appearance of physical facilities, equipment, personnel, and communication materials 4) Empathy – Caring, individualized attention the firm provides its customers 5)Reliability – Ability to perform the promised service dependably and
- Responsiveness: Responsiveness means to respond quickly, promptly, rapidly, immediately, ¢or instantly. Even if customers are chronically slow in getting back to providers, responsiveness is very crucial in their service ¢quality assessment. Whether its 30 minutes, 4 hours, or 24 hours, its important that customers feel providers are promptly responsive to their requests at anytime. Not only for emergencies, but even for ¢everyday responses as well. A member of the public calls at Chantefrais to complain that a particular Chantefrais outlet is not respecting its opening hours. The quality officer, to whom all complaints are addressed, has to make immediate inquiries & revert back to the plaintiff to reassure him that necessary actions have been taken.
- Assurance: Assurance is a combination of the following: Competence having the requisite skills and knowledge Courtesy politeness, respect, consideration and friendliness of contact staff Credibility trustworthiness, believability and honesty of staff Security freedom from danger, risk or doubt, to feel in good hands E.g. : Management of Chantefrais ensures that all staff is empowered enough to address complaints and requests. Following to some rumors sometime back, customers began asking whether there will be an increase in price of products. Any staffs were competent enough to handle this question and was ready to give explanations and details if asked. Art-lectures.
- Tangibles: Tangibles deals ¢with all that is physically visible and touchable. Even though this is the least important dimension, appearance matters. Service providers will still want to make certain their employees appearance, uniforms, equipment, and work areas on-site (closets, service ¢offices, etc.) look good. The danger is for providers who can make everything look sharp, and then fall short on Reliability or Responsiveness . Chantefrais, stresses on ethics about dress code. Uniforms are provided and no eccentricities are allowed such as flashy colors or outrageously sexy dresses for the ladies.
- Empathy: Empathy is the capacity to recognize feelings that are being experienced by another person. Someone may need to have a certain amount of empathy before ¢they are able to feel compassion. Empathy is a combination of the following: Communication – keeping customers informed in a language they understand and really listening to them. Understanding the customer making the effort to get to know customers and their specific needs while trying to “wear their shoes” The way of living, the background, & the level of education, have to be taken into consideration while dealing with Chantefrais’s customers.
- Reliability: Reliability “Do what you say you are going to do when you said you were going to do It.” because Customers want to count on ¢their providers. It is three times more important to be reliable than have shiny new equipment or flashy uniforms. Doesn’t mean you can have ragged uniforms and only be reliable. Service providers have to do both. But providers’ first and best efforts are better spent ¢making service reliable. E.g.: Some time back, Chantefrais management had promised the launching of a new product by a certain deadline, but for some technical reasons, was not able to do so before I year. This resulted in a lot of trust and reliability because the customers (franchisees) kept on asking about the new product and front liners.
Were unable to give satisfactory explanations. Chantefrais now never makes promises before being sure to be able to fulfill them.
Scope of the Study
The study would focus on the following area of Agrani Bank Ltd.
- The reports cover the Banking service to the customers especially the Perception of the customers of Agrani Bank Ltd.
- Overview of Banking in Bangladesh.
- Organizational Structure and Financial Service of Agrani Bank Ltd.
This report has been prepared though extensive discussion with Bank employees and also with the customers.
Limitation of the Report
- Time frame of the research was very limited. The actual survey was done within a month.
- Large scale research was not possible due to constraints and restriction posed by the organization.
- Part of organizational culture was written from individual’s perception and may vary from person to person.
- Getting relevant papers and documents were strictly prohibited.
Review of Related Literature
Saha, Sujit and M.S. Karim Chowdhury authored an article entitled “Role of Commercial Banks in Development Financing in Bangladesh” in 2000. They regarded commercial banks as the most important functionary of the financial system. They play a dynamic role in the economic development of a nation through mobilization of savings and allocation of credit to productive sectors. However, directed and inefficient credit allocation by the commercial banks of Bangladesh in various economic sectors without adequate credit appraisal and monitoring lead to the widespread loan delinquency, and deteriorating health of the entire financial system. In their noble effort of development financing, commercial banks are facing various problems such as mismatch of sources and usage of funds, extreme dependence on traditional collateral securities, politicization of credit delivery system, absence of sound legal system for recovery of loans, lack of government’s extension facilities in the form of data base, investment counseling appropriate technology, infrastructure, marketing of products and services etc. However, they should increasingly involve themselves in development financing in order to gain long-term viability benefiting themselves as well as the economy, but that should not occur at the cost of viability of the total financial intermediation process.
History of Banking in Bangladesh
Bangladesh is a developing country. Banking sector plays a pivotal role in the economic development of the country. Banking system of a country can well be said as a barometer of its economic prosperity. Well-developed banking system is indispensable for modern trade and commerce. Now-a-days, banks not only act as custodian of public money but also are indispensable as vital agent for maintenance of sound financial position of a country.
Nationalized Commercial Banks (NCBs) were established in Bangladesh in 1972 through amalgamation of twelve commercial banks that were operating in pre-independent Bangladesh allowing the poor access to fund, reducing capital flight to foreign countries, and increasing domestic investment were some of the basic objective of this nationalization. That means a society with wealth distributed as equitably as possible. But with time difference those banks has changed their policies and strategies, which were not fulfilling the class banking policies of the government. On an evaluation of the activities of commercial banks, it has been observed that the progresses made by the banking industry since nationalization was not impressive. The nationalized banks could not play the due role in the implementation of government programs and policies. Hence, a trend of de-nationalization of banks started from mid 80’s.
In the meantime, the policy of the government towards banking industry regarding economic management has changed since 1976. That year private sector had been entrusted to play a bigger role in the economy than before. Accordingly, in order to provide more credit to local investors the private sector banking had been introduced. Government decided to allow setting up of local Private Commercial Banks (PCB) in addition to Nationalized Commercial Banks (NCB) operating in the country.
Bangladesh Bank acts as a central bank for our country and it controls, supervises, and looks after the scheduled banks in the private commercial banks as well as the nationalized commercial banks formed by amalgamating.
The business of the twelve banks doing business in Bangladesh before liberation as per schedule given below:
Table-1: Banking History of Bangladesh
Existing Bank | New Bank | Authorized Capital (Lac Tk.) | Paid-up Capital (Lac Tk.) |
| The National Bank of Pakistan, The Bank of Behawalpur Ltd. | Sonali Bank | 500 | 200 |
| The Premier Bank Ltd., The Habib Bank Ltd., The Commerce Bank Ltd. | Agrani Bank | 500 | 100 |
| The United Bank Ltd., The Union Bank Ltd. | Janata Bank | 500 | 100 |
| The Muslim Commercial Bank Ltd., The Standard Bank Ltd. | Rupali Bank | 500 | 100 |
| The Austrasia Bank Ltd., The Eastern Mercantile Bank Ltd. | Pubali Bank | 500 | 100 |
| The Eastern Banking Corporation Ltd. | Uttara Bank | 500 | 100 |
Table 1: Banking History of Bangladesh
After the liberation of Bangladesh the twelve Banking companies who were doing business in Bangladesh, were nationalized by the Government of the People’s Republic of Bangladesh under president’s order No.26 of 1972 entitled The Bangladesh Bank (Nationalizations) Order, 1972” on March 26, 1972.
Banking Service in Bangladesh
With years, banks are also adding services to their customers. The Bangladesh banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in Bangladesh. With stiff competition and advancement of technology, the services provided by banks have become more easy and convenient. The past days are witness to an hour wait before withdrawing cash from accounts or a cheque from north of the country being cleared in one month in the south.
This section of banking deals with the latest discovery in the banking instruments along with the polished version of their old systems.
Types of Bank Account
The most common and first service of the banking sector. There are different types of bank account in Bangladesh banking sector. The bank accounts are as follows:
- Bank Savings Account – Bank Savings Account can be opened for eligible person / persons and certain organizations / agencies (as advised by Bangladesh Bank from time to time)
- Bank Current Account – Bank Current Account can be opened by individuals / partnership firms / Private and Public Limited Companies / Specified Associates / Societies / Trusts, etc.
- Bank Term Deposits Account – Bank Term Deposits Account can be opened by individuals / partnership firms / Private and Public Limited Companies / Specified Associates / Societies / Trusts, etc.
- Bank Account Online – With the advancement of technology, the major banks in the public and private sector has facilitated their customer to open bank account online. Bank account online is registered through a PC with an internet connection. The advent of bank account online has saved both the cost of operation for banks as well as the time taken in opening an account.
Plastic Money
Former ANZ Grindlays Bank, now Standard Chartered Grindlays Bank, took a pioneering role in introducing credit card in Bangladesh. It started acquiring Visa and MasterCard nearly 10 years back. In the first few years, its operational area was very limited and concentrated only on the large hotels and restaurants. In 1997 the bank decided to launch full-scale card operation and very realistically brought a wide range of people under its service system. It is now giving a wide range of card services through multifarious quality facilities.
Credit cards are financial instruments, which can be used more than once to borrow money or buy products and services on credit. Basically banks, retail stores and other businesses issue these.
Future of Banking in Bangladesh
A healthy banking system is essential for any economy striving to achieve good growth and yet remain stable in an increasingly global business environment. The Bangladeshi banking system has witnessed a series of reforms in the past, like deregulation of interest rates, dilution of government stake, and increased participation of private sector banks. It has also undergone rapid changes, reflecting a number of underlying developments. This trend has created new competitive threats as well as new opportunities. This paper aims to foresee major future banking trends, based on these past and current movements in the market.
Given the competitive market, banking will (and to a great extent already has) become a process of choice and convenience. The future of banking would be in terms of integration. This is already becoming a reality with new-age banks such as Banking, Mobail Banking etc. Technology will prove to be the differentiator in the short-term but the dynamic environment will soon lead to its saturation and what will ultimately be the key to success will be a better relationship management.
Risk Management
The future of banking will undoubtedly rest on risk management dynamics. Only those banks that have efficient risk management system will survive in the market in the long run. The effective management of credit risk is a critical component of comprehensive risk management essential for long-term success of a banking institution.
Although capital serves the purpose of meeting unexpected losses, capital is not a substitute for inadequate decontrol or risk management systems. Coming years will witness banks striving to create sound internal control or risk management processes. With the focus on regulation and risk management in the Basel II framework gaining prominence, the post-Basel II era will belong to the banks that manage their risks effectively. The banks with proper risk management systems would not only gain competitive advantage by way of lower regulatory capital charge, but would also add value to the shareholders and other stakeholders by properly pricing their services, adequate provisioning and maintaining a robust financial structure.
‘The future belongs to bigger banks alone, as well as to those which have minimized their risks considerably.’
Methodology of the Study
- Exploratory Research
Exploratory research is a type of research conducted for a problem that has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of subjects. It should draw definitive conclusions only with extreme caution. Given its fundamental nature, exploratory research often concludes that a perceived problem does not actually exist.
Exploratory research often relies on secondary research such as reviewing available literature and/or data, or qualitative approaches such as informal discussions with consumers, employees, management or competitors, and more formal approaches through in-depth interview.
Study Design:
Study design is a framework or blueprint for conducting the marketing research project it details the procedures necessary for obtaining the information needed to structure or solve marketing research problems. A good study design will ensure that the marketing research project is conducting effectively and efficiently. A study design involves the following components, or tasks.
- Define the information needed.
- Design the exploratory, descriptive, and causal phases of the research.
- Specify the measurement and scaling procedures.
- Construct and pretest a questionnaire or an appropriate form for data collection.
- Specify the sampling process and sample size.
- Develop a plan of data analysis.
Study place:
The study place is considered at Agrani Bank ,Shymoly Branch in the Dhaka city.
Study period:
The study period is consistent between March’1 to May ’10.
Study population:
The total population size for my thesis paper is 50.
Sampling Method and Sampling Size
Sampling Method
For the purpose of getting better result, I adopted non probabilistic purposive sampling technique during the survey of this project where customers were given copies of the questionnaire and were asked to fill them. I gave continuous support to the customers for any problems that they faced while filling up questionnaire so that the validity of the questionnaire increases. As the simple random sampling is easily understood and results are assessable it is best suited for my study.
Sampling Size
In this research phase I selected a group of 50 people
Data Collection Technique
In-depth interview: During the exploratory research, I conducted in-depth interviews with employees and customers of Agrani Bank Ltd.
Survey: I also designed a structure and unstructured questionnaire for the customers of Agrani Bank. This structured questionnaire was the major tools of this research project.
Source of Data
Primary Data
I have collected primary data by variety of ways, first of all by interviewing employees of Agrani Bank Ltd. and directly communicating with the customers. I have also conducted a questionnaire survey of the customers minimizing interruptions in their banking activities. Primary data were mostly derived from the discussion with the employees & through surveys on customers of the organization. Primary information is under consideration in the following manner:
- Face to face conversation with the employees.
- By interviewing customers of Agrani Bank.
Secondary data
I have elaborated different types of secondary data in my research. Sources of secondary information can be defined as follows:
Internal Sources
- Prior research report
- Group Business Principal manual
- Banks Annual Report
External Sources
- Different books and periodicals related to the banking sector
- Internet
- Newspapers
Target Group:
Individual Customer’s of Agrani Bank Ltd.
Measuring Scale
The analysis of collected data is completed with the help of the statistical tools. The response of the survey including the level of importance and the customer’s perception are tallied at first and then the weighted averages of those responses are prepared. Here the value of the Model is mentioned by using five point likert scale for measuring both customer expectations and perceptions which is counted as the weight. Finally by doing.
Mean of the questions of the single segment the overall mean importance and overall mean satisfaction level of the service quality dimension are calculated.
1. Agrani Bank’s interior decoration is visually appealing.
Satisfaction Score | Number of customer | Percentage (%) |
5 | 14 | 28% |
4 | 16 | 32% |
3 | 9 | 18% |
2 | 6 | 12% |
1 | 5 | 10% |
From the graph we can see that Agrani Bank Limited uses interior decoration but majority of the respondents are indifferent. 28% customers are highly satisfied, 32% customers are satisfied 18% customers are indifferent as well as 10% customers are negative with this statement.
Agrani Bank is cooperative to customers in claim settlement.
Satisfaction Score | Number of customer | Percentage (%) |
5 | 18 | 36% |
4 | 20 | 40% |
3 | 9 | 18% |
2 | 2 | 4% |
1 | 1 | 2% |
Most of the respondents were in indifferent while expressing their satisfaction towards this aspect. In this attribute satisfaction percentage is much higher which is only 36%. 40% customers are satisfied, 18% customers are indifferent, 4% customers are disagreeing with this statement and 4% customers are highly disagreeing with this statement.
You feel safe in your transactions with Agrani Bank..
Satisfaction Score | Number of customer | Percentage (%) |
5 | 42 | 84% |
4 | 5 | 10% |
3 | 3 | 6% |
2 | 0 | 0% |
1 | 0 | 0% |
When money transaction takes place, safty is one of the major issue that the customers are more concern about it. Agrani Bank ensure that customers are feeling safe in transaction .Analyzing the data I have found (among 50 customer) transaction systems are good enough “this complement is agreed by 84% highly satisfy, and 10% satisfy, 6% are no comments in this statement.
Agrani Bank uses modern technology to serve the customers.
Satisfaction Score | Number of customer | Percentage (%) |
5 | 39 | 78% |
4 | 6 | 12% |
3 | 5 | 10% |
2 | 0 | 0% |
1 | 0 | 0% |
From the graph we can see that Agrani Bank Limited uses high quality modern technology, because they operate their transaction more than 143 countries. That’s why customers are glad for taking these types of service except lack of ATMs availability. Where highly satisfied and satisfaction level which is 78% and 12% ,10% customers are indifferent, 0% customers are disagreeing with this statement and 0% customers are highly disagreeing with this statement
- Agrani Bank provides updated Credit and Deposit scheme to the customers.
Satisfaction Score | Number of customer | Percentage (%) |
5 | 40 | 80% |
4 | 9 | 18% |
3 | 1 | 2% |
2 | 0 | 0% |
1 | 0 | 0% |
From the graph we can see that Agrani Bank’s satisfaction percentage is much higher it is 80%, because 18% customers are satisfied, 2% customers are indifferent with this statement.23
- Agrani Bank provides error less account service?
Satisfaction Score | Number of customer | Percentage (%) |
5 | 41 | 82% |
4 | 5 | 10% |
3 | 3 | 6% |
2 | 0 | 0% |
1 | 1 | 2% |
From the graph we can see that Agrani Bank Limited uses high quality modern technology but majority of the respondents are indifferent. 82% customers are highly satisfied, 10% customers are satisfied 6% customers are indifferent as well as 2% customers are negative with this statement.
Agrani Bank provides hassle free services?
Satisfaction Score | Number of customer | Percentage (%) |
5 | 3 | 6% |
4 | 12 | 24% |
3 | 16 | 32% |
2 | 10 | 20% |
1 | 9 | 18% |
An extremely high percentage of Satisfaction was given in this attribute of service 32% customer are indifferent, 6% customers are highly satisfied, 24% customers are satisfied with this statement, as well as 18 % customers are strongly disagree with this statement.
- Agrani Bank Provides services within the time promised.
Satisfaction Score | Number of customer | Percentage (%) |
5 | 17 | 34% |
4 | 23 | 46% |
3 | 7 | 14% |
2 | 2 | 4% |
1 | 1 | 2% |
The majority of the respondents are with this statement 34% customers are highly satisfied, 46% customer are satisfied,14% customers are indifferent and 4% customers are disagreeing with this statement.
- The behavior of employees of Agrani Bank is satisfactory.
Satisfaction Score | Number of customer | Percentage (%) |
5 | 24 | 48% |
4 | 14 | 28% |
3 | 9 | 18% |
2 | 1 | 2% |
1 | 2 | 4% |
A moderate importance was placed on this attribute of responsiveness dimension where the satisfaction percentage is high. Employees are always willing to help but their resources are limited so they cannot give higher percentage of satisfaction. The majority of the respondents are satisfied. 48% customers are highly satisfied, 28% customers are satisfied with this statement,18% customers are indifferent as well as 4% customers are negative with this statement.
Agrani Bank’s physical facilities are visually appealing
Satisfaction Score | Number of customer | Percentage (%) |
5 | 15 | 30% |
4 | 20 | 40% |
3 | 11 | 22% |
2 | 3 | 6% |
1 | 1 | 2% |
Most of the respondents were in indifferent while expressing their satisfaction towards this aspect. In this attribute satisfaction percentage is 30% which is not much higher. 40% customers are satisfied, 22% customers are indifferent, 6% customers are disagreeing with this statement where 2% customers are highly disagreeing with this statement.
- The most of the customer of Agrani Bank are satisfied about the quality, services of the bank.
Historical Background
Agrani Bank Limited, a leading commercial bank with 878 outlets strategically located in almost all the commercial areas throughout Bangladesh, overseas Exchange Houses and hundreds of overseas Correspondents, came into being as a Public Limited Company on May 17, 2007 with a view to take over the business, assets, liabilities, rights and obligations of the Agrani Bank which emerged as a nationalized commercial bank in 1972 immediately after the emergence of Bangladesh as an independent state. Agrani Bank Limited started functioning as a going concern basis through a Vendors Agreement signed between the ministry of finance, Government of the People’s Republic of Bangladesh on behalf of the former Agrani Bank and the Board of Directors of Agrani Bank Limited on November 15, 2007 with retrospective effect from 01 July, 2007.
Agrani Bank Limited is governed by a Board of Directors consisting of 13(thirteen) members headed by a chairman. The Bank is headed by the Managing Director & Chief Executive Officer; Managing Director is assisted by Deputy Managing Directors and General Managers. The bank has 11 Circle offices, 25 Divisions in head office, 56 zonal offices and 878 branches including 27 corporate and 40 AD( authorized dealer) branches. The corporate and AD branches are authorized to deal in Foreign exchange business.
The authorized capital of the Bank is Tk. 800 crore.
Nature of Business
The principal activities of the Bank are providing all kinds of commercial banking services to its customers and the principal activities of its subsidiaries are to carry on the remittance business and to undertake and participate in any or all transactions, and operations commonly carried or undertaken by remittance and exchange houses.
The Bank also started its Merchant Banking operations at Head Office level from September 03, 2009 vide registration certificate no. AMB-34/2009 dated March 23, 2009 under Securities and Exchange Commission Act, 1993 and Securities and Exchange Commission Rules, 1996.
Agrani Bank Ltd. with its wide-ranging branch network and skilled personnel provides prompt services like issuing:
- Demand Draft
- Telegraphic Transfer
- Pay Order
- bills collection
- clearing
The Bank provides the following account facilities:
- Current/Savings/STD account
- FDR account
- Advance account
- Loan account
Agrani Bank has already established a worldwide network and relationship in international Banking through its overseas branches and foreign correspondents. The Bank has earned an excellent business reputation in handling and funding international trade particularly in boosting export & import of the country. The Bank finances exports within the framework of the export policy of the country.
Company Mission ,Vision & Moto
Company Mission:
- To become a leading bank of Bangladesh.
- Operating at international level of efficiency, quality and customer service.
Company Vision:
We operate ethically and fairly within the stringent framework set by our regulators. We fuse ideas and lessons from best practice to explore new avenues to become stronger, more efficient and competitive. We apply information and communication technology for the benefit of our customer and employees. We invest to strengthen the future of the bank.
Moto:
To adopt and adapt modern approaches to stand supreme in the banking arena of Bangladesh.
Organizational Overview
| Name of the company | Agrani Bank ltd. |
| Chairman | Khondokar bazlul haque,phd |
| Managing director | Syed abu naser bukhtear ahmed, B.Sc,MBA |
| Company secretary | MD. Ekramul Hakim |
| Legal status | Public limited company |
| Date of incorporation | 17 may 2007 |
| Registered office | 9d dilkusha commercial area, Dhaka-1000.bangladesh. |
| Authorized capital | Tk. 800 crore |
| Paid up capital | Tk. 497 crore |
| Reserve and retained earning | Tk. 420 crore |
| Number of employees | 13,269 |
| Number of branch | 878 |
| Number of subsidiary | 02 |
| Net Income | Tk 264.6 core (US$ 38.35 million) 2008 |
| Website | www.Agranibank.org |
| Agrani@ Agranibank.org |
Organizational Hierarchy
Business Challenge
Agrani Bank wanted to streamline their remittance operations and improve customer service. To achieve these objectives, they had to address four major challenges:
- Previously, most money transfers were processed manually across Agrani Bank’s remittance centres due to which it would take up to four days for beneficiaries to receive funds. Agrani Bank wanted to offer their customers popular same day services such as spot cash within minutes.
- Agrani Bank wanted to be able to communicate and collaborate information accurately, rapidly and reliably among their 878 branches. They wanted to ensure that the right information is delivered to the right branch at the right time using advanced auto-routing features.
- Some Agrani Bank branches could expect up to 2,000 customers on certain days, making it very difficult for their staff to serve them. Agrani Bank wanted to empower their staff to help customers as effectively as possible.
- Agrani Bank wanted to have a sophisticated money transfer management system that could be easily used by their staff. They wanted the system to be user-friendly so staff could rapidly learn how to use it, which in turn could save them time and cost.
Credit Rating
Credit Rating Information and Services Limited (CRISL) assigns AAA (Triple A) rating to Agrani Bank in the long run and ST-1 in the short term. The above has been done in consideration of the guarantee of the Government of the People’s Republic of Bangladesh while setting up Agrani Bank under the Presidential Order Number 26 of 1972 by assuming all assets and liabilities of some banks operating in former East Pakistan. CRISL, being a local rating agency, always considers the Government of the People’s Republic of Bangladesh as the highest risk free entity. Financial Institutions rated in this category are adjudged to be of best quality, offer highest safety and have the highest credit quality. Changing economic circumstances are unlikely to have any serious impact on the category of banks. The short term rating indicates highest certainty of timely payment. Safety is almost like risk free Government short-term obligations.
Credit rating by CRISL | particular | Long term | Short term |
| Entity Rating as Government |
Guaranteed Bank
AAA
ST-1
Entity Rating as Commercial Bank-2009
A
ST-2
Outlook
Stable
Date of rating declaration
06/09/2010
Table 2: Credit rating by CRISL
History of Agrani Bank Ltd.
Agrani Bank Limited Type- Public Limited Company
Industry- Banking Financial services
Founded – March 26, 1972
Headquarters- Dilkusha
Commercial area- Dhaka, Bangladesh
Area served -Bangladesh.
Key -people Dr. Khondoker Bazlul Hoque{Chairman) Products Finance and insurance
Consumer Banking,
Corporate Banking,
Investment Banking,
Investment Management Net income Tk 264.6 crore (US$ 38.35 million)
Employees -13,269
Website http://www.agranibank.org
Agrani Bank is a state-owned commercial bank of Bangladesh established in 1972 .Its headquarter is situated at Motijheel in Dhaka, the capital city of Bangladesh.
It started functioning as nationalized commercial bank taking over assets and liabilities of the erstwhile Habib Bank ltd and commerce Bank ltd.functioning in the East Pakistan. It has been privatized on15th November 2007 and emerged as Agrani Bank Limited (ABL) taking over assets, liability and goodwill of Agrani Bank. The authorized capital of the Bank is Tk. 800 crore.
Agrani Bank Limited, a leading commercial bank with 867 outlets strategically located in almost all the commercial areas throughout Bangladesh, overseas Exchange Houses and hundreds of overseas Correspondents, came into being as a Public Limited Company on May 17, 2007 with a view to take over the business, assets, liabilities, rights and obligations of the Agrani Bank which emerged as a nationalized commercial bank in 1972 immediately after the emergence of Bangladesh as an independent state. Agrani Bank Limited started functioning as a going concern basis through a Vendors Agreement signed between the ministry of finance, Government of the People’s Republic ofBangladeshon behalf of the former Agrani Bank and the Board of Directors of Agrani Bank Limited onNovember 15, 2007with retrospective effect from01 July, 2007.
Vision:
Socially committed leading banking institution with global presence.
Mission:
Dedicated to extend a whole range of quality products that support divergent needs of people aiming at enriching their lives, creating value for the stakeholders and contributing towards socio-economic development of the country.
Management of Agrani Bank
Management hierarchy of Agrani Bank is given blow:
Agrani Bank Limited is governed by a Board of Directors consisting of 13(thirteen) members headed by a chairman. The Bank is headed by the Managing Director & Chief Executive Officer; Managing Director is assisted by Deputy Managing Directors and General Managers. The bank has 7 Circle offices, 30 Divisions in head office, 52 zonal offices and 867 branches including 10 corporate and 40 AD( authorized dealer) branches.
Bank Divisions:
| Branch & Subsidiaries / Unit Control Division | |
| Company Affairs & Board Division | |
| Credit Policy & Credit Risk Management Division | |
| Establishment & Engineering Division | |
| HR Discipline, Grievances & Appeal Division | |
| HR Planning, Deployment & Operations Division | |
| HR Training, Research & Development Division | |
| Industrial Credit Division | |
| Information Technology & MIS Division | |
| Internal Control & Compliance Division | |
| Planning, Co-Ordination & Marketing Division | |
| Procurement & Common Services Division | |
| Recovery and NPA Management Division | |
| Rural Credit Division | |
| SME Credit Division | |
| Treasury Division | |
| Vigilance Division | |
| International Trade & Foreign Currency Management Division | |
| Foreign Remittance & Card Division | |
| Law Division | |
| Central Accounts Division | |
| Reconciliation Division | |
| Audit & Inspection Division | |
| Public Relation Division | |
| Core Risk Management & Basel-2 Implementation Division |
Principal Activities:
The Principal Activities of the bank is:
a) To facilitate and handle all kinds of commercial banking services to its
Customers authorized by Bangladesh Bank.
b) To perform Government Treasury functions and also act as an agent of
Bangladesh Bank.
c) The export and import trade of Bangladesh with other countries under various agreements.
d) International Banking.
General Banking
Various types of deposit A/C, Inoperative A/C, Payment of Checks, Return of Checks, A/C Closing, A/C Transfer, Works of Cash Section, Subsidiary Register Day Book, Clean Cash, General Ledger, Abstract, Remittance (P/O, DD, MT, TT) Bills Department, SC, LSC, Clearing House, Agrani Bank General A/C etc
Account Opening:
Account Opening Form: At first you have to fill up a form given by the Respective bank where you are going to open an account. This form contains some Information such as –
- Name of the Branch.
- Date.
- Title of the Account.
- Special instruction.
- Name of Account folder.
- Occupation.
- Address.
- Description of initial Deposit.
- Verification of the introducer.
- Specimen Signature.
- Pay in slip is filling up of all the particulars of Account and Cash tendered for.
- Deposit.
- Cheque requisition Slip.
- Ledger contains.
- Issue of Pass Book.
Bank Services
Background:
Considering the nature of service delivery and particularly intangible-dominant services, employee empowerment becomes a very important issue to organizations producing services. In that, the customers and the employees are, engaged simultaneously in the production of the service. This inseparability is what is considered by the organization in choosing how best to serve its customers, either by the traditional method or through the empowerment approach.
The inability of the management to control the service encounter makes the employees responsible for the quality of service delivered to the customers. In order for the management to trust that the employees are successful in dealing with their customers, the management has to give the employees the authority and necessary support to succeed at it, which is referred to as employee empowerment. The practice of which can directly affect the quality of services delivered, and customer satisfaction.
Agency Services
Agrani Bank Limited, being a state owned Bank, has both commercial commitment to its clients and sociatal commitment to the nation. Besides catering service to its clients at nominal fees/charges the Bank has to provide a plethora of services, free of charges, in respect of transfering money to diffrent benevolent organizations and groups of professionals in far flung areas through its branches in urban and rual areas all overBangladesh.
Locker Service:
For safekeeping of customers’ valuables like important documents and goods like jewelries and gold ornaments, Agrani Locker Service is available in most of the Branches in urban areas.
Evening Banking Service:
“Evening Banking”, a unique service of Agrani Bank Limited, only for receiving Cash and Documents beyond transaction hours till 6 o’clock in the evening, is available in about 207 important Branches of Agrani Bank Limited. The service is attractive for those, like shopkeepers, who accumulate cash as sales proceeds in the afternoon when counters of Bank branches usually remain closed.
Here below are a few of such services Agrani Bank Limited provides:
1. Collection of Utility bills:
Telephone bills of T &T Authority without service charges Grameen Phone bills of Grameen Phone Ltd. with service charge & other charges
Electric bill of REB without service charges
Electric bills of DESA without service charges
Electric bill of PDB without service charges
Electric bill of DESCO without service charges
Bills of Railways without service charges
Gas bill of Titas Gas, T& D Co. ltd without service charges
Gas bill of Bakhrabad Gas Co. ltd without service charges
Bill of Oil-bill of Meghna Petrolium Co. Ltd.
2. Sale/encashment of Saving Certificates
3. Sale/Purchase of Prize bonds
4. Payment of Army/civil pension
5. Payment of non-government primary /secondary school/college /Madrasha teachers benefit (government portion)
6. Payment of Government primary school teacher’s salary
7. Payment of Honorarium to freedom fighters.
8. Payment of stipend for female students of secondary and higher secondary institutions
9. Payment of Govt. allowances to Bayaska, Bidava and Dostho Mohila.
10. Payment of stipend to primary students
11. Payment of stipend to Shishu Kallyan Trust in urban areas.
12. Maintain of BADC disbursement account with 200 branches
13. Payment of Food Procurement bills.
Daridra Bimochon Karmasuchi (DABIK)
In collaboration with the Ministry of Youth and Sports, this programme was undertaken in 1990. Since November, 1995, however, the programme is being implemented as the Bank’s own programme. Landless rural poor owning land (including homestead) up to 0.50 acre can avail of credit facilities being a member of the 5-member group formed under this project. A wide range of activities are being financed under this program viz. mini poultry, beef-fattening, rural transport, handicrafts, small business, tailoring, fishery, nursery, vegetable production, food processing etc.Under the project credits are extended for a maximum amount of Tk.10,000/= without collateral and the interest rate is 10% per annum only.
Marginal and Small Farm Systems Crop Intensification Project
This project was undertaken by the Bank in 1990 in association with Bangladesh Bank, Rangpur Dinajpur Rural Services (RDRS) GTZ, and IFAD. Credits provided by the Bank are re-financed by Bangladesh Bank. The project is being implemented in 9 Upazillas of Kurigram District. The primary objective of the project is to establish a sustainable linkage between the SHGs (Self Help Groups) and the Bank so that the rural poor become bankable.The Self Help Groups (SHGs) comprising of 15-20 beneficiaries. Under the project, credit facilities are being extended to Self Help Groups of Marginal and Small Farmers both for collective and individual activities in the form of Seasonal Agricultural Loan (SAL), Agricultural Investment Loan (AIL), and Non-Agricultural Investment Loan (NAIL). Loans are collateral-free with a maximum ceiling of Tk.8, 000 at individual level and Tk.80,500 at collective level and the rate of interest is only 12% per annum
Small & Medium Enterprises Financing
This Program Small & Medium Enterprises Financing is being implemented in the Bank from 2005. The main objective is to promote and establish the Small and Medium Enterprises of Bangladesh as an efficient and profitable business concern with a view to ensure the economic development of the country by increasing local productions, generating income & employment.
Small Enterprises Development Project (SEDP, BGD-041):
This project was undertaken by the Bank in 1995 in association with NORAD to extend credit facilities in 40 Upazillas in greater Faridpur and Mymensingh Districts for establishment of micro enterprises. Under the project, 50% of the credit fund is being provided by NORAD and 50% by the Bank. The main objective is to improve socio economic conditions of the project areas through creating employment opportunities. A wide range of micro enterprises are being financed under this project such as rice mill, oil mill, food processing , flour mill, nursery, repairing workshop, hatchery, fishery, weaving, handicreafts etc. Maximum loan selling is Tk. 7, 50,000.The rate of interest is minimum and the maximum loan repayment period is 7 years. Now, the Project is going to be a subsidiary company of the Agrani Bank Ltd.
Loan for Disable Person
The Special Micro Credit Programmed for Disable Person came into operation in the Bank in 2002 under the instruction of the Bangladesh Government. The main objective of the Programmed is to make the disable person self reliant and bring them into the mainstream development activities of the country. The persons who are physically disable but mentally capable of operating the business can enjoy the loan facilities under this programmed. An individual or jointly with the competent member of his family can get the loan. Under the project maximum loan selling for the first time is Tk.25, 000 and for the second timeTk.50, 000.The rate of interest is 10% only. No collateral is required for the loan and any branch of the Agrani Bank Ltd. may disburse the loan as per requirement.
Women’s Credit Programmed
The Women’s Credit Programmed was undertaken by the Agrani Bank Ltd in 1993 with a view to uplift the socio economic condition of the women by engaging them into the different financial activities of the country. A huge number of income generating activities such as Education (establishment of Kinder garden, tutorial homes),Tailoring, Printing and Dying, Readymade garments shop, loaundry,Poultry, Mini dairy, Goat rearing, beef fattening,Nursury,Hotel/Resturant etc are involved in the project activities. Under the Programmed, the branch manager can sanction the loan up to Tk.50, 000. For loan up to Tk.1, 00,000 no collateral is required. The rate of interest of the loan is minimum and it is 11% per annum only.
Special Commercial Loan Programmed
This project was undertaken by the Bank in 1988 in association with Bangladesh Rural Development Board (BRDB) with financial assistance from Norwegian Agency for Development (NORAD) and Swedish International Development Agency (SIDA).The main objective of the Project was to develop the socio-economic condition of the rural poor of 20 upazillas of Faridpur,Rajbari, Madaripur, Gopalgonj and Shariatpur district. NORAD/SIDA provides 50% and Bank provides 50% of the credit fund. Maximum limit of credit under the project for individual was Tk.6000 for the first time and Tk. 12,000 for the 2nd time and onwards. Maximum limit of credit under the project for group was Tk. 1, 00,000. No collateral was required to avail of loan under the project. All loans sanctioned under the project were maximum period of one year, for special cases loan period was 18 months. After completion of the Project the recovery activity of the outstanding loan is going on by the Bank and the BRDB.
Kurigram Poverty Alleviation Project (KPAP)
RD-5 project i.e Productive Employment Project (PEP) was implemented jointly by BRDB and Agrani Bank Limited with the financial assistance from SIDA and NORAD since 1988. The project was implemented in 25 Upazillas of Faridpur , Rajbari, Madaripur, Gopalgonj, Shariatpur, and Kurigram district . SIDA withdrew financial support under the project from July/97. But considering the fact that Kurigram district as one of the poorest area of the country on request of the Government of Bangladesh NORAD agreed to provide financial assistance in Kurigram district as “Kurigram Poverty Alleviation Project (KPAP)” following the PEP Model from July/97. The project is covering 9 upazillas of the district. Agrani Bank Limited was covering 5 upazillas under the project where Agrani Bank Limited had branches.
The credit fund ratio under the project between NORAD and Bank was 50: 50. Maximum limit of credit under the project for individual was Tk.6000 for the first time and Tk. 12,000 for the 2nd time and onwards. Maximum limit of credit under the project for group was Tk. 1, 00,000. No collateral is required to avail of loan under the project. All loans sanctioned under the project were maximum period of one year, for special cases loan period was 18 months. Rate of interest under the project was 16% per annum of Bank’s portion. After completion of the Project the recovery activity of the outstanding loan is going on by the Bank and the BRDB.
Employee and Customer Satisfaction
Customer Satisfaction
Banking operations are becoming increasingly customer dictated. The demand for ‘banking super malls’ offering one-stop integrated financial services is well on the rise. The ability of banks to offer clients access to several markets for different classes of financial instruments has become a valuable competitive edge. Convergence in the industry to cater to the changing demographic expectations is now more than evident. Banc assurance and other forms of cross selling and strategic alliances will soon alter the business dynamics of banks and fuel the process of consolidation for increased scope of business and revenue. The thrust on farm sector, health sector and services offers several investment linkages. In short, the domestic economy is an increasing pie which offers extensive economies of scale that only large banks will be in a position to tap. With the phenomenal increase in the country’s population and the increased demand for banking services; speed, service quality and customer satisfaction are going to be key differentiators for each bank’s future success. Thus it is imperative for banks to get useful feedback on their actual response time and customer service quality aspects of retail banking, which in turn will help them take positive steps to maintain a competitive edge.
The working of the customer’s mind is a mystery which is difficult to solve and understanding the nuances of what customer satisfaction is, a challenging task. This exercise in the context of the banking industry will give us an insight into the parameters of customer satisfaction and their measurement. This vital information will help us to build satisfaction amongst the customers and customer loyalty in the long run which is an integral part of any business. The customer’s requirements must be translated and quantified into measurable targets. This provides an easy way to monitor improvements, and deciding upon the attributes that need to be concentrated on in order to improve customer satisfaction. We can recognize where we need to make changes to create improvements and determine if these changes, after implemented, have led to increased customer satisfaction. “If you cannot measure it, you cannot improve it.” – Lord William Thomson Kelvin (1824-1907).
The Need to Measure Customer Satisfaction:
Satisfied customers are central to optimal performance and financial returns. In many places in the world, business organizations have been elevating the role of the customer to that of a key stakeholder over the past twenty years. Customers are viewed as a group whose satisfaction with the enterprise must be incorporated in strategic planning efforts. Forward-looking companies are finding value in directly measuring and tracking customer satisfaction (CS) as an important strategic success indicator. Evidence is mounting that placing a high priority on CS is critical to improved organizational performance in a global marketplace.
With better understanding of customers’ perceptions, companies can determine the actions required to meet the customers’ needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company.
When buyers are powerful, the health and strength of the company’s relationship with its customers – its most critical economic asset – is its best predictor of the future. Assets on the balance sheet – basically assets of production – are good predictors only when buyers are weak. So it is no wonder that the relationship between those assets and future income is becoming more and more tenuous. As buyers become empowered, sellers have no choice but to adapt. Focusing on competition has its place, but with buyer power on the rise, it is more important to pay attention to the customer.
Customer satisfaction is quite a complex issue and there is a lot of debate and confusion about what exactly is required and how to go about it. This article is an attempt to review the necessary requirements, and discuss the steps that need to be taken in order to measure and track customer satisfaction.
Clearly then there is some variation in understanding of the term. Some of the interpretations fit with the definitions used in much of the service quality and satisfaction literature, where satisfaction is viewed as a zero state, merely an assessment that the service is adequate, as opposed to “delight” which reflects a service that exceeds expectations. However, most respondents have more positive interpretations of the term. These questions allow us to identify priorities for improvement by comparing satisfaction with stated (overt) importance, comparing satisfaction with modeled (covert) importance (from identifying key drivers of overall satisfaction), as well as respondents’ own stated priorities.
Service Quality and Customer Satisfaction:
There is a great deal of discussion and disagreement in the literature about the distinction between service quality and satisfaction. The service quality school view satisfaction as an antecedent of service quality – satisfaction with a number of individual transactions “decay” into an overall attitude towards service quality. The satisfaction school holds the opposite view that assessments of service quality lead to an overall attitude towards the service that they call satisfaction. There is obviously a strong link between customer satisfaction and customer retention. Customer’s perception of Service and Quality of product will determine the success of the product or service in the market.
If experience of the service greatly exceeds the expectations clients had of the service then satisfaction will be high, and vice versa. In the service quality literature, perceptions of service delivery are measured separately from customer expectations, and the gap between the two.
Expectations and Customer Satisfaction:
Expectations have a central role in influencing satisfaction with services, and these in turn are determined by a very wide range of factors lower expectations will result in higher satisfaction ratings for any given level of service quality. This would seem sensible; for example, poor previous experience with the service or other similar services is likely to result in it being easier to pleasantly surprise customers. However, there are clearly circumstances where negative preconceptions of a service provider will lead to lower expectations, but will also make it harder to achieve high satisfaction ratings – and where positive preconceptions and high expectations make positive ratings more likely. The expectations theory in much of the literature therefore seems to be an over-simplification.
Satisfaction of Customer:
- Easy for transaction around the country
- Low interest for any transaction
- High security arrangement
- Available Branches.
Dissatisfaction of Customer:
- Lack of friendly manner.
- Slow Banking/working services.
- Lack of helpful tendency.
- Much more restriction for transaction.
- Unattractive Banking.
- Dissatisfaction of responsibility of bankers.
- Dissatisfaction of loan application.
- Dissatisfaction of banking services.
Employee satisfaction
Why is employee satisfaction important? Purpose / benefits of employee satisfaction include as follows:
1. Importance of employee satisfaction for organization
• Enhance employee retention.
• Increase productivity.
• Increase customer satisfaction
• Reduce turnover, recruiting, and training costs.
• Enhance customer satisfaction and loyalty.
• More energetic employees.
• Improve teamwork.
• Higher quality products and/or services due to more competent, energized employees.
2. Importance of employee satisfaction for employee
• Employ will believe that the organization will be satisfying in the long run
• they will care about the quality of their work.
• They will create and deliver superior value to the customer.
• They are more committed to the organization.
• Their works are more productive.
Satisfaction of Employees
1. Much more job security then privet bank
2. Advantages of loan application
3. Less restriction for loan application
4. Training opportunities
5. Other facilities.
6. Good relation with mgt. to employee.
7. Satisfaction about welfare factors
8. Satisfaction relationship with co-workers
9. Available Branches.
Dissatisfaction of Employees
1. Lower salary then privet bank
2. Slow promotional methods & criteria
3. Unattractive working condition
4. Weak administration
5. Lack of motivation, recruitment process
6. Lack of transportation system
7. Dissatisfaction of Mgt. system
8. Lack of cooperative tendency.
9. Dissatisfaction of salary & allowances
10. Dissatisfaction nature of work.
Co-relation between Employee and Customer Satisfaction
| Employee Satisfaction | TO | Customer Satisfaction |
| job security then privet bank | – | Slow working services. |
| Lower salary then privet bank | – | Lack of friendly manner. |
| Slow promotional methods & criteria | – | Dissatisfaction of responsibility of bankers. |
Easy for transaction around the country Weak administration
Dissatisfaction of banking services.
Lack of cooperative tendency.
Lack of helpful tendency.
Unattractive working condition
Unattractive Banking.
Available Branches.
Agency Services
Agrani Bank Limited, being a state owned Bank, has both commercial commitment to its clients and societal commitment to the nation. Besides catering service to its clients at nominal fees/charges the Bank has to provide a plethora of services, free of charges, in respect of transferring money to different benevolent organizations and groups of professionals in far flung areas through its branches in urban and rural areas all over Bangladesh.
Here below are a few of such services Agrani Bank Limited provides:
- Collection of Utility bills :
- Telephone bills of T &T Authority without service charges
- Grameen Phone bills of Grameen Phone Ltd. with service charge & other charges
- Electric bill of REB without service charges
- Electric bills of DESA without service charges
- Electric bill of PDB without service charges
- Electric bill of DESCO without service charges
- Bills of Railways without service charges
- Gas bill of Titas Gas, T& D Co. ltd without service charges
- Gas bill of Bakhrabad Gas Co. ltd without service charges
- Bill of Oil-bill of Meghna Petrolium Co. Ltd.
- Sale/encashment of Saving Certificates
- Sale/Purchase of Prize bonds
- Payment of Army/civil pension
- Payment of non-government primary /secondary school/college /Madrasha teachers benefit (government portion)
- Payment of Government primary school teacher’s salary
- Payment of Honorarium to freedom fighters.
- Payment of stipend for female students of secondary and higher secondary institutions
- Payment of Govt. allowances to Bayaska, Bidava and Dostho Mohila.
- Payment of stipend to primary students
- Payment of stipend to Shishu Kallyan Trust in urban areas.
- Maintain of BADC disbursement account with 200 branches
Locker Service
For safekeeping of customers’ valuables like important documents and goods like jewelries and gold ornaments, Agrani Locker Service is available in most of the Branches in urban areas.
Nature of Service | Nature of Charges | Rate of Charges |
Custody of Locker / Safe | Rent | a) Yearly TK.900/= for small size locker |
| b) Yearly TK.1200/= for medium size locker | ||
| c) Yearly TK.1800/= for big size locker |
Table 3: Locker Service
Evening Banking Service
“Evening Banking”, a unique service of Agrani Bank Limited, only for receiving Cash and Documents beyond transaction hours till 6 o’clock in the evening, is available in about 207 important Branches of Agrani Bank Limited. The service is attractive for those, like shopkeepers, who accumulate cash as sales proceeds in the afternoon when counters of Bank branches usually remain closed.
Financial Service
The Bank offers financing on easy terms to the following “Thrust Sectors”:
Electronics Computer Software & IT
Agro-based industries
Artificial flower Product Frozen food
Export oriented non-traditional agro product
Jute goods leather goods Gift item
Jewelry and Diamond Silk worm cultivation
Stuffed toys (except RMG)
Oil & Gas Textile industry
Import Finance
With assistance from about 400 overseas correspondents, Agrani Bank Limited, through 40 Authorized Dealer Branches, has been financing full range import business of a lot of Importers who are Bank’s clients.
Sugar Rice Wheat
Milk Food Oil Seeds Edible Oil
Raw Cotton Spices Fruits
Pharmaceuticals R.M Textile Fabrics Cotton Yarn
Parts Chemicals Drugs & Medicine
Electronic Component Motor Vehicle Cement
Scrap Vessels Fertilizer Petrol, Oil & Lubricant (POL)
Export Finance
To boost up country’s Export, Agrani Bank Limited has been providing different kinds of assistance and incentive to the exporters. Some of which are:
- Pre-Shipment and Post-Shipment Finance.
- Discount/Concession rate of interest for exports Finance.
- Back-to-Back L/C facility under bonded Warehouse system.
- Sight L/C under Export Development Fund (EDF).
- Export Incentive Program.
Financing industries of 100% foreign investment or of Joint Venture at Export Processing Zones
- Obtaining EEF (Equity & Entrepreneurship Fund) from Government through Bangladesh Bank for building up Entrepreneurs’ Equity.
- Providing services to the exporters by the Bank’s own logistical supports like SWIFT, Reuters Service, Internet, and Fax etc.
Scope of Further Expansion:
Software and Data entry Toys and luggage Dry & Dehydrated fish
Stationery goods Fashion item Leather goods
Bamboo & wooden furniture Gift item Orchid
Merchant Banking Operation
Issue Management:
We shall render our service to help the capital market to increase the supply of securities. Being a Manager to issue we shall provide assistance to the Private Limited Companies intended to be converted into Public Limited Companies by way of obtaining necessary permission from relevant authorities, preparing prospectus for public issue of shares and debentures, involving in the collection of application money and end through listing of securities with stock exchange.
Underwriting:
Agrani Bank Limited with its strong capital base is capable of providing underwriting commitments for successful completion of IPO of any size enabling the companies to go public.
Portfolio Management:
Initially the Non-Discretionary (i.e. Investor’s Discretion) portfolio account will be opened. Subsequently the portfolio management shall be expanded with the introduction of following schemes:
- Bank’s discretionary portfolio account.
- Investor’s discretion portfolio management scheme for high net worth investors.
Interest, Fees, Commission etc:
- Cost of account opening form :Tk. 25.00
- Initial Documentation Charge :Tk. 500.00
- Brokerage Commission: 0.50% on the value of traded securities.
Interest on Margin Loan:
- Interest Rate : 13.00% per annum Mode of charging interest : Quarterly
Service Charge
- Portfolio Management : 1% per annum with a minimum
- charge of Tk. 500.00
- Mode of Service Charge : Quarterly
- Financial/Portfolio
- Statement Charge :Tk. 10.00 per statement
- Terms & Conditions : Charges, fees etc. may change from
- Time to time at the discretion of Agrani Bank Limited.
Foreign Remittance
Agrani Bank Limited gives top priority in handling remittance from Bangladeshi Wage Earners working abroad. We have made arrangement to ensure crediting the remitted amount to the beneficiary’s A/C within 72 hours from the time our Back Office in Dhaka receives Credit Advice.
You may open NFCD Account in any of our Authorized Dealer (AD) Branches in Bangladesh. You may also collect Forms from Bangladesh Missions abroad and send your application to us for opening NFCD Account. Facilities of NFCD Account:
- Your money will always be in foreign currency of your choice
- You can withdraw and transfer both interest and principal in foreign currency
- You will enjoy many privileges Government has declared for expatriate Bangladeshis who send their money through banking channels
- You can also convert your foreign currency into Taka
Probashi Remittance Card:
The Probashi Remittance Card is a prepaid card that provides customer immediate access to their pay. The cardholder or beneficiaries can use the card at any Electro ways ATM or pay for purchases at the point-of-sale, pay bills and transfer funds to their loved ones! Like other prepaid payment products, the Probashi Card can be used every places where Electro ways logos are accepted. The cardholders also can receive a monthly statement and can obtain account information at ATMs and POS terminals or by calling the customer care number.
- Instant payment
- No minimum balance requirement
- Can be used at any Electro ways® enabled POS or ATM
- Access to money anytime
- Balance inquiry facility available via ATMs and POS
- 24 hour call centre assistance (coming soon)
- SMS alerts every reload
- Monthly statements via email (coming soon)
- Easy process of replacement of lost card
Upon enrolment, the customer receives a Prepaid card from the banks which is working with Remittance program (Like; Probashi). The customer can either give standing instructions for transferring a fixed amount to his beneficiary’s card every pay cycle or use
The card to transfer remittances to his beneficiary as and when he wants.The transactions made are detailed on monthly electronic or printed account statements.
Money Transfer Management Solutions (MTMS)
Agrani Bank engaged Remittance to provide them with an end-to-end, web-based money transfer management solution to address their business challenges.
The Remittance MTMS was delivered on time and met the demands. In addition, Agrani Bank is very pleased with the level of support they received from Remittance.
Business Benefits
With the Remittance MTMS, Agrani Bank now offer a set of advanced, enhanced, rapid and secure services to their customers, including:
- Enhanced customer experience due to the following impressive same day services:
- Spot Cash remittance for both account holders and non-account holders
- Instant SMS notifications after successful processing of transactions
- Improved remittance delivery options for remitters to choose from and to make it easier for beneficiaries to collect their funds
- Significantly reduced processing costs due to automation of all remittance-related tasks
- Improved business process management due to business-critical information being instantly available to the right staff member at the right branch.
- Empowered business users who can tend to a multitude of customers in a highly effective and efficient manner
- Rapidly increasing ROI through rapid execution of various remittance operations, tasks and activities
Future Plans
Agrani Bank is actively working to become the foremost remittance provider in all Bangladesh through effective market penetration. They plan to open more overseas exchange houses in important locations and forge strategic alliances with major global remittance companies sending money to Bangladesh.
With 878 branches across the country and now an end-to-end, fast and reliable technology solutions by remittance, Agrani Bank are certainly placed well in the remittance industry to achieve their business goals.
Conclusion
This research has provided some interesting insight in to what kind of service the customers give importance to and what quality service they get from Agrani Bank Ltd. It is quite obvious from the research that the customer requirements are not fully met and they are very dissatisfied with some of the aspects of the bank. Again the research revealed that only one third of customers were more or less satisfied with the service of the bank and more than half of the respondents were on the neutral side of satisfaction line.
Finally, I would say that this research report at Agrani Bank has increased my practical knowledge of Business Administration and made by BBA education more complete and applied. In this report, I got the opportunity to apply various tools and concepts I learn in my BBA courses.
Customers are the vital for every business. It is not possible to make a profitable business without concerning the customer’s benefit. Agrani Bank is a great domestic bank. To achieve the desired position in the market, timely improvement in service is essential.This report is an effort to reflect a clear idea about the Employee & customers’ satisfaction of service quality of Agrani bank ltd. From my research I also found quality has more priority in terms of selecting the different type of schemes according to the Employee & customer perception. I present this report on the basis of the knowledge and experience gained during the internship period. Throughout the report my objective is to seek and find out the Employee & customer satisfaction of service quality of Agrani bank ltd. From this report I found that most of the Employee & customers of the bank are dissatisfied about the quality of the bank. To satisfy these, the management can take some attempts, noted earlier as recommendations. Considering the volume of operation and limitations of resources and proper management the bank is doing better than many modern banks. If we can overcome these problems, then it is possible to be internationally competitive banks in the competitive global .So, the Human Resource Division as well as the top strategic level management should find out underlying causes of weakness related to Human Resources of the bank. If it’s possible for the bank management to provide recommended services, the perception of the Employee & customers will be positive about the service quality of the Agrani bank.
Recommendation
Agrani Bank is one of the most flourishing Bank of Bangladesh with wide growth opportunities in the industry. The survey on the customers of Agrani Bank was conducted with an aim of improving the overall customer satisfaction at Agrani Bank Ltd. The research gave valuable insights as to where improvements were necessary to improve the quality of service. Agrani Bank has strong organizational strength can successfully utilize the opportunities and overcome its weakness. These are given below:
- Agrani Bank does not use modern equipment and technology that better satisfy customer’s needs. So it is necessary to improve their technological advancement.
- Though the ATM machines are latest in technology but every the customers are coming up with complaints regarding the ATM booths are not available in different area. So establish the ATM booth in different areas.
- Agrani Bank does not give individual attention to the customer. So try to improve individual attention to the customer.
- The customers have to pay charge to get second copy of bank statement.
- Employees always try to solve different types of problems but customers are not satisfied. So try to improve the problem solution strategy.
- Agrani Bank employees have lack of friendliness & courtesy. So try to improve this problem by good behavior with the customers.
- Number of customers and superior service also depends on the number of branches. So try to increase the number of branches in different areas because convenience of branches or the branches availability also influence the customers to get involve with the bank.
- Customers always try to get the appropriate solution for different types of banking problems so employees should give appropriate solution to problem.
- To satisfy these, the management can take some attempts, noted earlier as recommendations.
- To arrange proper promotion system, proper salary, proper welfare system for employee.
- To arrange good services, better & attractive scheme for customer.
