Customer Satisfaction on Repayment Behavior (Part-2)

3.8 SWOT analysis:

Strengths:

• The number of branches is more than any other bank in our country.
• Provide better loan service
• Brac bank Ltd has already established a favorable reputation in the banking industry of the country.
• A good number of experienced bankers in its management.
• The numbers of depositors are more than other bank in our country.
• Largest private sector commercial bank of Bangladesh.
• Management team is very qualified.
• Highest most profitable bank in Bangladesh.

Weaknesses:

• The activities of bank are maintained by manually in the rural area.
• Lack of employee satisfaction.
• Lack of modern information technology being practiced.
• Many competitors.
• Salary is fewer amounts other than competitors.

Opportunities:

• Many area SME network coverage
• Their network service is whole the country, so people get more service here.
• Brac Bank can collect deposit from rural area that other bank can not do because of their huge branches.
• The income of people is increasing day by day.
• People are interested in getting personal loan with lower interest rate.
• High contribution in economic development
• Money transfer easily in any branches of Bangladesh.

    Threats:

• Many banks offer different type of product that people like than Brac Bank.
• Banking competitors are increasing.
• Some time the recruitment process is not effective.

3.9 Areas of improvement:

     ► Working process of CRO:

The working process that they are followed is not very speedy. All the process takes manual involvement. Another thing is sometimes organization remain busy for interest incresing. And before completing the interest they can’t provide the loan. And many of time they fill soil by truck. It’s a slow process.

     ► Facilities for employees:

BRAC Bank Ltd(BBL) tries to give all types of facilities that they want for better performance. But still there is some lacking like there is nothing to entertain. So that employees get bored. As well as the working hour is 10am to 7pm. It is also be shorted.

     ► Equipments:

         They use computer, printer and papers as equipments. Computer that they are using is very old version and it is need to replace so that it can work effectively. On the other hand Data file that they use for identify the information is need to be updated because so many changes has happened in recent yea.

Chapter Four

Customer Satisfaction on Repayment behavior

4.1 Demographic profile of the respondents

This analysis part divided into two parts. Respondents were asked some general questions and beside this general questions they were also asked some questions to identify the customers satisfaction on Repayment Behavior of BRAC Bank Ltd. The analysis of general questions are given below.

Table 4.1: Gender

To complete this report the researcher had to conduct with 35 respondents where 32 respondents were male and rest of 3 were female. The ratio can be seen graphically in the pie chart.

Table 4.2: Level of Education

The study divided my respondents’ level of education into four classes. Among them less than SSC were 15 people. SSC were 10 persons. HSC were 5 persons. And BA/BSS/BSC/Honors were 5 persons. So I can say that most of the respondents are less than SSC. I can see the ratio of the different classes of people as follows on pie chat

Table 4.3: Occupation

After collecting the profession wise information we saw that Businessman is 14 respondents, Students 11 respondents, Service holder is 5 respondents and other is 5 respondents. Here we can see that mostly businessman and Students has take loan.

Table 4.4: Income

Sample size was 35, according to the income level mostly 75,001-1, 00,000 range customers has taken loan more. And others loan taker ratio can be seen in the pie chat.

Q7: Taking loan from this bank is easy.

Table 4.5: Taking loan from this bank is easy.

Table shows 51% respondents strongly agreed that Taking loan from Brac bank is easy and 2.9% were disagreed. The mean is 4.23 (Appendix 1). This is the arithmetic average which is indicating most of the respondents marked between 5 and 4.The median is 5 (Appendix 1), that means the midpoint is 5.The mode is 5 (Appendix 1), that means 5 is the most repeated answer in this question. The calculated standard deviation is 0. (Appendix 1) It’s indicating the spread on the answers variability.

Q8: I am satisfied with the interest rate

Table 4.6: Satisfied with the interest rate

Here Table shows that 60% respondents are strongly agreed and 22.9% respondents are agreed that they satisfied with the interest rate from this Bank because of its popularity. and 17.1% respondents are neutral with this question. The mean is 4.43 (Appendix 1). This is the average which is indicating most of the respondents marked between 5 and 4.The median is 5 (Appendix 1). The mode is 5 (Appendix 1), that means 5 is the most repeated answer in this question. The calculated standard deviation is 0.78 (Appendix 1) It’s indicating the spread on the answers variability.

Q9: Customers get waiver based on repayment.

Table 4.7: Waiver based on repayment.

Customers get waiver based on repayment. Here analysis shows that 22.9 % respondents were neutral but 37.1 % respondents were Strongly agreed and only 14.3 % respondents were disagreed. And strongly disagreed persons were very few. The mean is 3.69 (Appendix 1). This is the average which is indicating most of the respondents marked between 5 and 3.The median is 4 (Appendix 1). The mode is 5 (Appendix 1), that means 5 is the most repeated answer in this question. The calculated standard deviation is 1.28 (Appendix 1) It’s indicating the spread on the answers variability.

Q10: Bank are nearby to my locality.

Table 4.8: Bank nearby to my locality 

With this statement most of the respondents were strongly agreed. 9 people were neutral. 10 respondents were agreed and 1 people were strongly disagreed. The mean is 4.17 (Appendix 1). This is the average which is indicating most of the respondents marked 5.The median is 5 (Appendix 1). The mode is 5 (Appendix 1), the calculated standard deviation is 1.01 (Appendix 1).

Q11: I follow the rules and regulation of the loan.

Table 4.9: Rules and regulation of the loan

Here analysis shows that 45.7% respondents were strongly agree but 28.6 % respondents were agreed and 22.9% neutral and only 2.9 % respondents were strongly disagreed. The mean is 4.17 (Appendix 1). This is the average which is indicating most of the respondents marked between 4 and 5.The median is 4 (Appendix 1). The mode is 5 (Appendix 1), the calculated standard deviation is 0.89 (Appendix 1).

Q12: This bank provides competitive facilities.

Table 4.10: Bank provides competitive facilities 

Here analysis shows that 51.4% respondents are strongly agreed and 28.6% respondents are agreed that they satisfied with the competitive facilities from this Bank because of its popularity. And 17.1% respondents are neutral and only 2.9%respondents are disagree with this question. The mean is 4.29 (Appendix 1). This is the average which is indicating most of the respondents marked between 5 and 4.The median is 5 (Appendix 1). The mode is 5 (Appendix 1), that means 5 is the most repeated answer in this question. The calculated standard deviation is 0.86 (Appendix 1) It’s indicating the spread on the answers variability.

Q13: Customer relative officers (CRO) are very friendly

Table 4.11: CRO are very friendly

According to frequency table 19 respondents says that the number of Customer relative officers (CRO) that are very friendly and customer is satisfactory. The calculated mean is 4.31 (Appendix 1). That means most of the respondents answered between 5 and 4. The median and mode are 5 (Appendix 1). The calculated standard deviation is 0.83 (Appendix 1)

Q14: I am satisfied with the repayment system of this bank.

Table4.12: Satisfied with the repayment system of this bank.

Here analysis shows that 48.6% respondents are strongly agreed and 25.7% respondents are agreed that they satisfied with the repayment system of this bank. and 25.7% respondents are neutral with this question. The mean is 4.23 (Appendix 1). This is the average which is indicating most of the respondents marked between 5 and 3.The median is 4 (Appendix 1). The mode is 5 (Appendix 1), that means 5 is the most repeated answer in this question. The calculated standard deviation is 0.84 (Appendix 1) It’s indicating the spread on the answers variability.

Q15: I am satisfied with the terms and conditions of Small & Medium Enterprises (SME) that they provide.

Table 4.13: satisfied with the terms and conditions of SME

The analysis shows 42.9% respondents strongly agreed that people satisfied with the terms and conditions of Small & Medium Enterprises (SME) that they provide. and 34.3% were agreed and 22.9% is neutral. The mean is 4.20 (Appendix 1). This is the arithmetic average which is indicating most of the respondents marked between 5 and 3.The median is 4 (Appendix 1).The mode is 5 (Appendix 1), that means 5 is the most repeated answer in this question. The calculated standard deviation is 0.80 (Appendix 1) It’s indicating the spread on the answers variability.

Q16: CRO give more practical suggestion to acquire knowledge  of loan.

Table 4.14: CRO give more practical suggestion of loan.

This analysis shows that most of the respondents are strongly disagreed that CRO give more practical suggestion to acquire knowledge of loan .So they are dissatisfactory. The mean is 2.20 (Appendix 1). This is the average which is indicating most of the respondents marked between 5 and 1.The median is 2 (Appendix 2). The mode is 1 (Appendix 2), that means 1 is the most repeated answer in this question. The calculated standard deviation is 1.23 (Appendix 1) It’s indicating the spread on the answers variability.

Summery Of Findings

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. So that a study has been made up on the customers’ of BRAC Bank to measure that how much satisfied they are. To complete this research a survey was conducted on 35 customers of BBL. The findings are as follows:

Among 35 respondents 32 respondents were male and rests of 3 were female. There are four categories level of education but most of the respondents are less than SSC-SSC. In occupation wise highest numbers of respondents are Businessman and Student. Most of the respondents are in income range of 75,001-1, 00,000. Among the 35 respondents most of them taken loan from BBL. After completing the survey we saw that respondents are strongly satisfied that taking loan from this bank is easy. Customers satisfied with the interest rate. After analysis this statement, the study show that most of the respondents give their opinion as a strongly agreed. Customers get waiver based on repayment. it does so. After analysis this statement, that most of the respondents are strongly agreed. Because of their reputation. The respondents are very satisfied about the bank are nearby to my locality. After analysis this statement I found that most of the respondents follow the rules and regulation of the loan. The respondents are very satisfied that this bank provides competitive facilities.

Customer relative officers (CRO) are very friendly. After analysis this statement, found that most of the respondents are strongly agreed. Because of their relation. Most of the respondents are very satisfied about the repayment system of the BBL.Respondents were strongly satisfied with the terms and conditions of Small & Medium Enterprises (SME) that they provide.CRO give more practical suggestion to acquire knowledge of loan. After analysis this statement, I found that most of the respondents are strongly agreed.

Most of the respondents are very satisfied because CRO are available during the consulting hour. Overall loan facilities for the client are excellent .after analysis this statement, found that most of the respondents give their opinion as a strongly disagreed. After completing the survey we saw that respondents are strongly dissatisfied that the loan they provide is proportionate to the asset customer deposit. Most of the respondents are strongly satisfied that there is uninterrupted loan supply in this bank. According to the nature of loan taker business that the respondents were very satisfied. Most of the respondents are strongly agree that overall performance of this loan section is better of BBL.This survey will recommend to my relative to take loan in this bank. After analysis this statement, found that most of the respondents are strongly agreed.

This bank is depending on the customers’ interest and satisfaction. So that BBL always concern about satisfaction of customers’. Finally observing all the factors we can include here that the customers of BBL is very much satisfied about the loan service of BRAC Bank.

Conclusion and Recommendations

6.1 Conclusion

In fact, BRAC Bank promotes broad-based participation in the Bangladesh economy through the provision of high quality and modern banking services. The research  also found that loan has more priority in terms of selecting the different type of schemes according to the customer satisfaction on repayment. 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 customer satisfaction on repayment behavior of Brac bank Ltd. From this report found that most of the customers of the bank are satisfied about the loan service of the bank. BRAC bank has established their image as one of the best loan service provider for its potential customers. And SME loan is one of such quality product through which they offer the small and mediocre entrepreneurs a quality banking services and earn the maximum profit as well. The recovery rate of this loan is 97%, which is extremely good in comparison to any other bank’s recovery rate. Brac Bank has made it possible as the loan is given to experienced, small and mediocre entrepreneurs most of whom are middle aged, slightly educated and having moderate income and this class of people is very loyal. But they can serve this class of customers with more commitment and loyalty and they can turn the recovery rate to 100%.

BRAC Bank Ltd started with a vision to be the most efficient financial intermediary in the country and it believes that the day is not far off when it will reach its desired goal.BRAC Bank Limited looks forward to a new horizon with a distinctive mission to become a highly competitive modern and transparent institution comparable to any of its kind at home and abroad.

6.2 Recommendations

From the research and analysis show lot of result about the customers’ satisfaction on repayment behavior of BRAC bank Ltd.The Research identified that many of the respondents from my sample aware about the loan service of banking activities. The research found some points. The points are as below:

Overall loan facilities for the client are excellent. But found that most of the customers have given the disagreed opinion with the statement.

The loan they provide is proportionate to the asset I deposit. Because survey found that most of the customers have given the disagreed opinion with the statement is BRAC Bank Ltd keeps customers informed about when services will be performed.

CRO give more practical suggestion to acquire knowledge of loan. Because survey found that most of the customers were highly dissatisfied for CRO give more practical suggestion of loan

Decentralization may save time and helpful for effective decision making.