Customer Service and Customer Satisfaction of Prime Bank

The main objective of this report is to analysis Customer Service and Customer Satisfaction Towards Prime Bank Limited. This report focuses on various customer services and level of customer satisfaction and also some problems faced by this bank in maintains its services with the recommendation. This report will help the management practitioner to identify the loopholes of the proper customer satisfaction and the constraints that hinder their performance regarding better customer service. This report will also help the customers to identify their expectation from the company.

Introduction

Banking system occupies an important place in a nation’s economy because of its intermediary role; it ensures allocation and re-allocation of resources and keeps up the momentum of economic activities. In a developing country like Bangladesh, the banking system as a whole has a vital role to play in the progress of the economic development.

Banks in these days provide a variety of services. They provide both short- term and long- term credit. Their customers come from a small business to a multi- national corporation having its business activities all around the world. Modern banks are not only providing traditional banking, but also are expanding the menu of financial services. Banks are making the untouchable service touchable for their customers.

The changing and expanding role of banking has made the banking business more complex and competitive. Customers are the center of all the activities of a bank. To serve the customers according to customer’s requirement, every bank has different divisions and every division has units or departments and every department has their own functions. This is very difficult to satisfy a customer in banking sector because the customers usually make judgment about the quality of services depending on how much satisfaction they are getting from the customer service and the way of judgment varies from customer to customer. Keeping in view the need for information/data on all dimensions of the report, the study on “Customer Service and Customer Satisfaction Towards Prime Bank Limited” was undertaken.

Objectives

Broad Objective:

The broad objective of the study is to provide overall idea of Customer service and to find out those key factors which are mostly responsible to satisfy the customers of Prime Bank Ltd. So the broad objective of the report is to identify the consumers and their views towards the customer service of Prime Bank Ltd, the needs and wants of the consumer and their views towards customer service to increase their satisfaction level.

Specific Objective:

• To determine customer satisfaction level regarding the current level of service.
• To find out the problems of customer service of Prime Bank Limited.
• To find out the strengths and weaknesses of Prime Bank Limited.
• To have an overall idea about banking system.
• To determine standard service, that will increase customer satisfaction level.

Data presentation techniques and format of report:

After collecting data, a comprehensive screening process is followed. Incomplete and biased data is stored out and deleted from the data bank. Both descriptive and inferential statistics is used in the analysis. We used two softwares to analyze the data. The softwares are-

• SPSS
• Microsoft Excel

A logical consistency checking technique is employed to identify inconsistencies using SPSS. In the event of inconsistencies or discrepancies being detected in the process, corrective measures will be taken. The analysis is done with both quantitative and qualitative procedure. MS-Excel is used as the software for quantitative analysis. And the qualitative analysis is done based on the quantitative findings.

Correlation between the factors and age, gender, income, was identified to know the relationship. In order to explore relationship with the overall service quality, multiple regression will be preferred with the factors.

• MS Word
• Power Point
• SPSS output

Background of Prime Bank Limited

In the backdrop of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs conceived an idea of floating a commercial bank with a different outlook. For them it was competence, excellence and consistent delivery of reliable service with superior value products. Accordingly, Prime Bank Limited (PBL) was established and commencement of business started on 17 April 1995.

Prime Bank Ltd. is operating as a scheduled bank under the banking license issued by Bangladesh Bank, the Central Bank of the country on April 17, 1995 through the opening of its Motijheel Branch at Adamjee Court Annex Building, Motijheel commercial area, Dhaka-1000. PBL was registered under the Companies Act of 1913 with its five-registered office, Rajuk Avenue, Motijheel commercial area, Dhaka-1000 that was later shifted to Adamjee Court Annex-2 Building, 119-120, Motijheel commercial area, Dhaka-1000.

As a fully licensed commercial bank, Prime Bank Limited has been managed by highly professional and dedicated team with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so does the bank and it adjusts and repositions it to the changed conditions.

In its 13^th year of operation in 2008, Prime Bank Ltd has made substantial headway in terms of business growth, profitability and establishing its image as one of the leading private commercial banks. Its march towards reaching greater heights in operation continues with full vigor and enthusiasm. Prime Bank has made significant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMELS rating. The bank holds the first position in the CAMELS rating, published by Bangladesh Bank for the last consecutive four years. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operations.

Objective of the Bank

Prime Bank Limited designs to provide commercial investment bank services to all type of customers ranging from small entrepreneurs to big business firms. In this regard, it gives emphasize on the priority sector of the economy like industry, housing and self- employment. Besides, the bank aims to provide different customer friendly deposit and loan products to fulfill the banking needs of the individual customers.

Vision of the Bank

To be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity.

Mission of the Bank

• To build Prime Bank Limited into an efficient, market driven, customer focused institution with good corporate governance structure.
• Continuous improvement in business policies and procedure and efficiency through integration of technology at all levels.

Corporate Culture

This bank is one of the most disciplined Banks with a distinctive corporate culture, believe in shared meaning, shared understanding and shared sense making. Bank people can see and understand events, activities, objects and situation in a distinctive way. They mould their manners and etiquette, character individually to suit the purpose of the Bank and the needs of the customers who are of paramount importance to the bank. The people in the Bank see themselves as a tight knit team/family that believes in working together for growth. The corporate culture the bank belongs has not been imposed; it has rather been achieved through corporate conduct.

Departments of Prime Bank Limited

• Logistic & Support Services Division (L & SSD):

Its main functions relate to procurements and supply of all tangible goods and services to the branches as well as Head Office of Prime Bank Limited.

• Financial Administration Division (FAD):

Financial Administration Division mainly deals with the account side of the Bank. It deals with all the Head Office transactions with bank and its branches.

• Credit Division:

The main function of this division is to maintain the Bank’s Credit Portfolio. A well-reputed and hard working group of executives & officers run the functions of this division. These functions are as follows:

• Receiving proposals
• Proposing and appraising
• Getting approval
• Communicating and sanctioning
• Monitoring and follow-up
• Setting price for credit and ensuring effectiveness of it
• Preparing various statements for onward submission to Bangladesh Bank

International Division:

The objective of this division is to assist management to make international dealing decisions and after decision is made, guide Branches in their implementation.

Computer Division:

Prime Banks operates and keeps records of its assets and liabilities in computers by using integrated software to maintain Ledger.

Public Relations Division:

It has to perform certain functions related    to all types of communication. The broad routine functions are- receiving and sanctioning of all advertisement application, keeping good relation with different newspaper offices, inviting concerned ones for any occasion, keeping good relation with different officials of electronic media.

Marketing Division:

Marketing Division is involved in two types of marketing:

Asset Marketing:

Marketing of assets refers to marketing of various kinds of loans and advances. In-order to perform this job, the officials often visit domestic large organizations and attract them to borrow from the Bank to finance profitable ventures.

Liability Marketing:

In this case, different organizations having excess funds solicited to deposit their excess fund to the Bank. If the amount of money to deposit is large, the Bank sometimes offers a bit higher price than the prevailing market rate.

Human Resources Division (HRD):

It performs all kinds of administrative and personnel related matters. Its main activities are- Selection & Recruitment of new personnel, Preparation of all formalities regarding appointment and joining of the successful candidates, Placement of manpower, Dealing with the transfer, promotion and leave of the employees, Training & Development of personnel, Termination and retrenchment of the employees.

Inspection & Audit Division:

Inspection and Audit division works as internal audit division of the company. The officers of this division randomly go to different branches to examine the necessary documents regarding each single account.

Credit Card Division:

Prime Bank obtained the principal membership of Master Card International in the month of May 1999. The Marketing Team of this division goes to the potential customers to sell the card. Currently Prime Bank Ltd. offers  some types of cards, like:

• Local Silver Card
• International Silver Card
• Local Gold Card
• International Gold Card
• VISA Credit Card

Merchant Banking and Investment Division:

This division concentrates its operation in the area of under-writing of initial public offer (IPO) and advance against shares. The Bank has a large amount of investment in shares and securities of different corporations as well as government treasury bills and prize bond.

Products & Services Of Prime Bank Ltd

Deposit Schemes

Bank is the largest mobilizer of surplus domestic savings. For poverty alleviation, we need self-employment; for self-employment, we need investment and for investment we need savings. In 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. Moreover, 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.

Prime Bank Limited has formulated the following Savings Schemes:

• Contributory Savings Scheme
• Short Term Deposit Scheme
• Fixed Deposit Scheme
• Double Benefit Deposit Scheme
• Monthly Benefit Deposit Scheme
• Lakhopati Deposit Scheme
• Special Deposit Scheme
• Education Saving Scheme

Contributory Savings Scheme:

This is a Savings Scheme in which a person gets the opportunity to build up savings by contributing monthly installments and receives an attractive fixed amount at the end of a specified term.

The Scheme is designed to help the fixed income group to save money and build up a sizable fund with which they can go for some income generating venture to improve the quality of their life and/or meet any future financial obligations.

The salient features of the Scheme are given below:

1. Minimum size of monthly installment shall be Tk. 500/- and multiplies of Tk. 1000/-.  Maximum installment size shall be Tk. 25,000/-
2. The Deposit shall be for a period of 5 years.
3. Lump sum amount shall be paid after maturity or monthly Pension shall be paid for the next 5 years according to the size of deposit. A brief chart of lump sum amount and monthly pension installments payable are shown below:

At present Income Tax on interest will not be applicable but in future for any change in Govt. rule of taxation, the Bank reserve the right to deduct Income Tax.

1. The depositor will have the option to choose any installment size at the time of opening of an Account and will not be allowed to change the size of installment afterwards.
2. Account in the name of minors can be opened too under the Scheme.
3. A person can open more than one account for different size of installments at any branch of the Bank.
4. The specified amount on maturity at any slab shall be paid after one month from the date of deposit of the final installment.

Normally no withdrawal shall be allowed before maturity. But, if any depositor intends to withdraw his/her savings due to certain unavoidable reasons before 5 years, he/she will be allowed to do so, in the following manner:

1. No benefit or interest shall be allowed for pre-mature encashment within one year.
2. If the account is closed after one year of its opening, interest shall be allowed on the deposit at prevailing Savings Deposit rate.
3. The monthly installment shall be payable by the 8th day (in case of holiday the next working day) of every month. Advance payment of any number of installments is acceptable.
4. When a depositor fails to deposit any installment, he/she will have to pay a fine @5% of the overdue amount payable at the time of depositing the next installment or maximum Tk. 500/-.
5. When a depositor fails to pay 3 (three) consecutive installments at any point before five years term, the customer will cease to remain within the purview of the scheme and scheme will be treated as a Savings Bank deposit and interest will be paid on the deposited amount at prevailing SB account rate subject to completion of 1 (One) year of its opening.
6. Loan may be allowed up to 80% of the deposited amount against lien on the same after at least 2 (Two) years of regular payment of installments and minimum limit of the loan shall be Tk. 50,000/-.
7. In case of death of a depositor, the account will cease to be operative and the amount deposited so far shall be paid to the nominee, and in absence of nominee, to the legal heirs of the deceased as per rules in force.
8. The Bank at its discretion may allow inter branch transfer of the A/C under the Scheme.
9. The clients are encouraged to give standing instructions to the Bank to deposit the monthly installments, debiting their CD/SB accounts maintained with the concerned Branch. In that case, no charge will be realized for such service.
10. Normally no statement of the account will be served to the depositor, in case of need of any depositor, charges @ Tk. 10/- per year / per statement shall be realized as cost of paper.
11. At the time of opening account under CSS customer shall refer his/her SB account number for transferring his/her pension amount or may open SB A/C at the time of maturity for getting monthly pension amount.

Double Benefit Deposit Scheme:

The main features of this scheme are:

1. Deposit of Tk. 1, 00,000 (Tk. one lac) and multiplies thereof but maximum limit of Tk. 25, 00,000 ( twenty-five lac).
2. At maturity, the deposit amount will be double & paid to the depositor.
3. Photograph of Nominee, duly attested by the depositor, will obtain at the time of opening the account.
4. Normally no withdrawal will allow before maturity. But if any depositor intends to withdraw his deposit before maturity, the following rules will be applicable:
   • No benefit including interest/profit will allow for pre-mature encashment within one year.
   • If the accounts/deposits close after one year of its opening, benefit will allow on the deposit at normal Savings Deposit rate.
5. In case of death of a depositor, the amount of instrument will pay to the nominee, to the legal heirs of the depositor on production of succession certificate.

Monthly Benefit Deposit Scheme:

This is a deposit scheme where the depositor gets a fixed amount of profit every month. The scheme is designed for the benefit of the persons who intend to meet the monthly budget of their families from the income out of their deposit.

The salient features of the Scheme are given below:

1. Deposit of Tk. 25,000.00 (Taka twenty five thousand) and multiples thereof, but maximum Tk. 25, 00,000/- (Taka twenty-five lac) shall be acceptable under the Scheme.
2. The Deposit shall be for a period of 5 (Five) years. The Principal amount is refundable on maturity.
3. Profit shall be paid on monthly basis @ Tk. 1,000.00 per Tk. 1,00,000.00.
4. Payment of monthly profit shall start from the subsequent month after a clear minimum gap of 30 days from date of deposit.
5. In case of death of a depositor, the account shall cease to be operative and the amount deposited so far shall be paid to the nominee, and in the absence of nominee, to the legal heirs of deceased as per rules in force.

Normally, the deposit will not be encashable before 5 (Five) years. But if any depositor intends to withdraw his deposit before maturity due to certain unavoidable reasons, he would be allowed to do so in the following manner:

1. No benefit including interest shall be allowed for pre-mature encashment within one year.
2. If the accounts / deposits are closed/ encashed after one year of its opening, benefit shall be allowed on the deposit at existing normal Savings Deposit rate.
3. If the amount of monthly profit already paid exceeds the amount payable at normal Savings rate, the difference shall be realized from the principal deposit amount, if and when necessary.

Separate Application Form specially designed for the purpose shall be obtained duly filled in and signed by the depositor. In addition to this, the depositor must have a separate Savings Bank Account with the branch wherein the benefit on the amount so deposited shall be credited every month.

1. A specially designed Receipt shall be issued for the deposit under the Scheme in the same manner as issued in case of FDR.
2. The Receipt will not be transferable.
3. Advance against lien on such Receipt can be allowed up to 80% of the deposit bearing normal rate of interest prevalent at the time on Overdraft/ Loan.
4. During the period of such Overdraft/ Loan, the monthly benefit shall be credited to the concerned Overdraft/Loan.
5. Payment will be made after deduction of taxes as fixed by the Govt. from time to time.
6. In case the instrument is lost, the procedure for issuance of a duplicate will be the same as applicable in case of loss of FDR.

N.B. Senior Citizens will get 0.50% higher rate of interest as permissible for all other deposits of our Bank. Monthly benefit shall be Tk. 1042/- per Tk. 1,00,000/- per month for Senior Citizens.

Education Saving Scheme:

The education expenses particularly the expenses for higher education are sharply increasing day by day in our country. Sometimes, the children are deprived of getting the desired level of education because of the inability of the parents to meet their educational expenses. However, the parents would not feel any difficulty to defray such expenses if a proper financial planning makes much ahead of time. Moreover, the Bank is receiving demands from the Islamic minded people of our country for an attractive Savings Scheme based on Islamic Sariah to encourage them to save in Islamic way for education of their children.

Prime Bank Limited has introduced a Saving Scheme entitled “Education Savings Scheme” based on profit and loss sharing. The scheme provides a unique opportunity to the parents to make a future provision for the educational expenses of their children when they enter into Schools, Colleges and Universities out of the benefit of a small amount of savings with the Bank at an opportune moment.

The salient features of the Scheme are given below:

1. The Scheme shall be implemented through all our branches, though it is specially designed for Islamic Banking branches.
2. Deposit of Tk. 50,000/- and multiples thereof but maximum limit of Tk. 5,00,000/- at a time will be acceptable under the Scheme.
3. A specially designed Receipt shall be issued for the deposit under the Scheme in the same manner as issued in case of FDR.  Branches shall use the ESS receipts that used for existing scheme.
4. The instrument shall be issued for a period of 5 years term.
5. On maturity a lump sum amount of Tk. 85,382/- shall be payable or education allowance @ Tk. 1,854/- per month per Tk. 50,000/- shall be payable on the basis of deposit amount for next 5 years starting from the completion of the term as per following table.  Income Tax @10% on interest may be deducted at source at the time of payment of lump sum amount.

1. To avail the monthly allowances the depositor is required to surrender the savings instrument to the Bank duly discharged with a written instruction to the Bank to pay the installments to his ward on monthly installment basis as stipulated in the scheme.
2. Separate Application form specially designed for the purpose shall be obtained duly filled in and signed by the depositor.
3. Photograph of the Nominee and Ultimate Beneficiary, if any, duly attested by the depositor, shall be obtained at the time of opening the account.
4. Normally no withdrawal will be allowed before maturity. But if any depositor intends to withdraw his/her deposit before maturity, the following rules will be applicable:

1. No benefit including interest shall be allowed for pre-mature encashment within one year.
2. If the accounts/deposits are closed/ encashed after one year of its opening, benefit shall be allowed on the deposit at normal Savings Deposit rate.

1. The instrument will be acceptable as collateral security against any investment subject to registering lien with the issuing Branch.
2. In case of death of the depositor, the amount of instrument will be paid to the nominee or, in the absence of a nominee, to the legal heirs of the depositor on production of succession certificate.
3. But if the nominee after the demise of the depositor intends to continue the deposit to enjoy the monthly educational allowance for five years, as admissible under the rules of the scheme, the receipt should be surrendered to the Bank on maturity duly discharged by the nominee and duly authenticated by the legal guardian.
4. In case of instrument is lost the procedure for issuance of the duplicate will be the same as applicable in case of loss of FDR.

Deposit Performance

Prime Bank Limited is well able to mobilize substantial deposits through various deposit schemes. The deposit balance of Prime Bank reached the level of Tk. 70,512 million during 2007 from Tk. 54,724 million of previous year. The growth rate is 28.85 percent. This was possible due to superior customer service delivery at the branch level, expansion of branch network to rural areas where foreign remittance flow is significant.

The deposits performance is shown below:

Deposit mix as on December 31, 2007 was as follows:

Loan Schemes

Prime Bank Limited has formulated the following Loan Schemes:

• General Loan Scheme
• Consumer Credit Scheme
• Lease Finance
• Hire Purchase
• House Building / Apartment Loan Scheme
• Advance against Share
• Small and Medium Enterprise (SME)

General Loan Scheme:

Depending on the various nature of financing, all the lending activities have brought under the following General Loan:

• Short term Loan
• Medium term Loan
• Long term Loan

The loans allow to individual / firm / industries for a specific purpose but for a definite period and generally repayable by installments fall under this head. This type of lending is mainly allowed to accommodate financing under the categories:

• Large & Medium Scale Industry and
• Small & Cottage

Consumer Credit Scheme:

In order to provide financial assistance to the limited income group for raising their standard of living by acquiring domestic durables like freeze, TV, Computer, Motor Car, etc., the bank has have introduced a Consumers Credit Scheme to improve the quality of life particularly of the fixed income earner of the society.

Consumer Credit Products:

• Car Loan
• Doctors Loan
• Advances Against Salary
• Education Loan
• Travel Loan
• Marriage Loan
• Hospitalization Loan
• Household Durable Loan

Lease Finance:

Lease financing is one of the most convenient long-term sources of acquiring capital machinery and equipment. An obvious advantage of the lease is to use an asset without having to buy it. The lessee is obligated to make lease payments until the expiration of the lease agreement, which corresponds to the useful life of the asset.

Salient Features of Lease Financing:

• Lease finance offers for acquiring the use of Capital Machinery, Equipments, Medical Instruments and Automobiles.
• Financial Lease is long term in nature and is no cancelable.
• The customer will be required to make a deposit equivalent to 3 (three) months lease rentals to the Bank on the date of signing of the lease agreement, which shall be refunded to the client at the expiry of lease term.
• Bank will purchase the equipment after confirmation of the acceptance of the equipment by the client.
• On execution of Lease, the client and the Bank shall enter into an amendment lease agreement reflecting the actual acquisition cost.
• The term of lease is maximum 5 (five) years in case of Capital Machinery, Equipment and Medical Instruments but 4 (four) years in Automobiles.
• The Lessee will pay service charge or project examination fee @O. 15% on the sanctioned amount subject to a minimum Tk. 3,000 and maximum Tk.10, 000 in case of acquisition of machinery and Equipments for projects. In case of Automobile, a service charge of Tk. 500 is payable when the acquisition cost is below Tk. 10.00 lac and an amount of Tk. 1,000 is payable when the acquisition cost is Tk. 10.00 lac and above.

Hire Purchase:

Hire Purchase is a type of installment credit under which the Hire Purchaser (Client) agrees to take the goods on hire at a stated rental, which is inclusive of the repayment of Principal as well as interest for adjustment of the loan within a specified period.

House Building Loan Scheme:

Loans allowed to individual/enterprises for construction of house (residential or commercial) fall under this type of advance. The amount is repayable by monthly installment within a specified period. Such advances are known as Loan (HBL­GEN). Loans allowed to the Bank Employees for purchase /construction of house shall be headed Staff Loan (HBL-STAFF).

Advance against Share:

To contribute to the development of the Capital Market of the country Prime Bank Limited extends credit facilities against pledge of Shares to the individuals as well as to the Member of DSE & CSE.

Terms & Conditions:

• For availing of credit facilities against pledge of shares the intending borrowers shall deposit shares of at least three (3) Companies, which are preferably registered in his/her name.
• Credit facilities in the form of Secured Overdraft (SOD) Limit may allow up to 50% of the Value of shares pledged calculated based on current market prices or previous 6 months’ average market prices, which is lower.
• The Share Certificates must accompany by form -117 containing the signature of the Shareholders duly checked and verified.
• The maximum limit shall be Tk. 20.00 Lac for individual borrowers.
• Interest rate charges @ 15% P.A quarterly or as amends from time to time.

Small & Medium Enterprise (SME):

Many small and medium entrepreneurs in the country have innovative idea, spirit and potentiality to do something productive for local consumers as well as export abroad. Prime Bank Limited provides loan to small and medium entrepreneurs and play positive role in the overall socioeconomic development of the country.

Objectives:

• To provide credit facilities to the small and medium size entrepreneurs
• Help the entrepreneurs to take part in economic activities.
• To inspire for undertaking small projects for creation employment.

Master Card

Prime Bank Limited obtained Principal Membership of Master-Card International in the month of May 1999. The Special feature of the Prime Bank Master Card is that it bears the cardholder’s photo on the card, which is the first of its kind in Bangladesh and adds security against misuse. It has created a new dimension in its customer service and consumer financing. Prime Bank limited issues 4 types of cards. These are:

• Gold local
• Gold International
• Silver local
• Silver International.

Followings are the main feature of MasterCard Credit:

• Prime Bank ensures high level of security by inserting the account holder’s Photograph on the Card.

• 20 to 50 days credit form the date of transaction. When the client receives his/her monthly statement, either he/she can choose to pay in full or just minimum due amount shown on the statement. No interest is charged if he/she pays in full within payment due date.
• 24 hours a day, 365 days worldwide service.
• No fees of joining/administrative.
• Waiver of annual fees for International Card: If the client accumulates 20,000 Prime Bank Bonus Point for Gold Card or, 10,000 Bonus Point for Silver Card in a year then he/she enjoys his/her Card without fees ($ 1 purchase: 1 Bonus).
• Waiver of annual fee for local Card: If the client accumulates 10,000 Prime Bank Bonus Point for Gold Card or 8,000 Bonus Point for Silver Card in a year then he/she enjoys his/her Card without fees (Tk. 5o purchase: 1 Bonus point).
• The highest bonus point holder can enjoy free air ticket Dhaka – Bangkok – Dhaka (Business Class).
• Cash advance facilities.

Credit Limit:

PBL may sanction any credit limit that is the maximum of credit available to the cardholder which can be accessed at any one time, for the facilities under Condition 2 hereof and may terminate or modify or vary such facilities or credit limit without notice. The limit imposed for Cash Advances shall be part of the credit limit imposed. The credit limit will notify in writing to the Cardholder.

ATM Card

Prime Bank at new eskaton branch stared its new facilities of ATM. ATM services that provide 24 hours cash transactions o their clients. This service is highly preferred by the clients. Therefore, Prime Bank has a good opportunity to provide their own ATM facility to the customers. A customer will withdraw maximum Tk. 30,000 per day. Customer of Prime bank ATM card holder can withdraw money from DBBL booth without any service charge.

General Banking Instruments

There are different types of instruments by which different services are provided to the customers. These instruments use to do the task smoothly and in a very efficient way.

Cheque book:

According to section 60 (f) of negotiable instruments act, 1881, a cheque is “A bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand”.

To facilitate withdrawals and payments to third parties by the customer, Prime Bank Limited provides a cheque book to the customer. Cheque book contains 10 leaves for savings account while for current account is 10 to 50 leaves. The cheque book also contains requisition slip, which is used by the customer to obtain new cheque book. When all the leaves are used, the customer submits the slip to the bank. A senior official then issues a new cheque book and subsequent entries are given in the register and in computer. If the chequebook is lost, the customer has to furnish a guarantee indemnifying the bank. After fulfilling this, a new chequebook is issued.

Pay Order:

A pay order is a written order, issued by a bank, to pay a certain sum of money to a specified person or a bank. A pay order issued and paid by the same branch of a bank and such, the drawer and the drawee are the same. The person or the organization in whose favor it issues known as payee or the beneficiary. Pay Order send to the individual on payment of value and is called the purchaser.  To purchase a pay order, the customer must have a bank account in the issuing bank. The purchaser should sign the standard application form giving detailed particulars and request for issue of pay order. The payee or beneficiary must not appear to be fictitious. His full name and address should be written on the application. Bank should recover commission of pay order from the purchaser.

Pay Slip:

A pay slip is written authorization for making payment-specified person or firm payable by issuing branch, for a discharge liability of the bank. A pay slip originates made payable by the bank in a receipt form there is no need for any application for its issue. A pay slip issues to effect payments because of bills payable for goods and services purchased or availed by it. For example, bank is required to make payment of bills for the purchase of furniture & fixture, for printing & stationary and for any other works done on its behalf by the other party on agreement with the bank.

Demand Drafts:

Demand draft is an order to pay money, drawn by one branch of a bank for a sum of money payable to order on demand. A draft cannot payable to bearer. The purchaser of a demand draft may or may not be customer of the bank. The purchaser of the draft must fill in the relative application form with his name, amount, and name of the payee, the amount and the office in which it is drawn. In order to sure safety, the purchaser advised to cross the draft and the bank gives a test number. Having issued the draft the issuing officer would send the drawee branch, an advice containing the particulars of the draft branch through savings account.

Dishonor of Cheque

If a cheque is dishonored, PBL sends cheque return memo to the customer stating the reason in the following way:

• Insufficient fund, Exceeds arrangements
• Effects not cleared, May be presented again
• Payment stopped by drawer
• Payee’s endorsement irregular/illegible/required
• Payee’s endorsement irregular, requires bank’s confirmation
• Drawer’s signature differs/required
• Cheque is post dated/out of date/mutilated
• Alteration in date/ figures/words
• Amount of words and figure differs
• Crossed cheque must be presented through a bank, clearing stamp required/ requires cancellation
• Cheque crossed “Account Payee Only”

If the cheque is dishonored due to insufficiency of funds, Prime Bank Limited charges Tk.50 as penalty. If the cheque is lost then the customer must inform the police and should take a copy of G.D. The customer then fills an indemnity for guarantying that the cheque is lost. When the bank is convinced with having the above documents bank gives to the customer a new cheque book.

Online Banking Operation

The bank has set up a wide area network across the country to provide online branch banking facility to its valued clients. Under the scheme, clients of any branch shall be able to do banking transaction at other branches of the bank. Under this system, a client may do the following types of transactions:

• Cash withdrawal from his or her account at any branch of the bank irrespective of location.
• Cash deposits in his or her account at any branch of the bank irrespective of location.
• Transfer of money from his or her account with any branch of the bank.
• Any amount can deposit or transferred under Prime online. However, at present there is a limit for cash withdrawal through bearer or by account holder himself.

Clearing

In this unit, all the cheques of Prime Bank Limited and other banks of Bangladesh deal. There are two kinds of clearing process.

1. Inward clearing
2. Outward clearing

Process Of Inward Clearing:

For inward clearing, cheques of Prime Bank Limited, Pallabi Branch deposit in other banks and sent back to Pallabi Branch of Prime Bank Limited through clearing house for collection of money. In this process, cheques of Pallabi Branch of Prime Bank Limited are sent to local office of Prime Bank Limited first. Then the local office sent those cheques to the Pallabi Branch.

After receiving cheques from the local office of Prime Bank Limited, those cheques are directly sent to the computer section for checking the balance of those specific accounts from which money should be collected. If the required balance available there then amount debited from that account and the cheque is honored. However, in case if the required balance is not available, the authorized officer of clearing department immediately informs it to the head of the customer service or he tries to connect the account holder. If the account holder does not deposit the required balance immediately, the cheque is dishonored. Finally, the authorized officer gives all the entry of those cheques in inward clearing register. After giving the entries, a credit advice is sent to the local office of Prime Bank limited.

Process Of Outward Clearing:

For outward clearing cheques, the bearer of the cheques must have an account in Pallabi branch of Prime Bank Limited. After the submission of the cheques, authorized officer gives the entries in software, provided by Bangladesh bank. After giving all the entries print and enclose with the cheques. Then all the cheques with the enclosed sheets are sent to the head office of Prime Bank Limited for the collection of money. The head office sends it to clearing house.

Send For Collection:

Customer deposits cheque, drafts, etc. for collection along with deposit slip. Instruments within the range of clearing collect through local clearinghouse, but for outside the clearinghouse ranges collect through OBC (Outward Bill Collection). Customer of Prime Bank Limited, Pallabi branch, Dhaka may deposit a cheque of Prime Bank Limited, Moulvibazar branch. For this purpose the collection bank, Prime Bank, Pallabi branch will do as follows:

• The cheque first deposits with the help of a slip.
• The collecting bank gives a crossing with prime Bank, Pallabi branch. It indicates that the mentioned bank is the collecting bank.
• Entry for outward clearing register gives with clearing seal and giving the cheque a ‘S’ (subsidiary) seal.
• The cheque register in Send for Collection register and a Send for Collection number is given.
• Endorsement is giving, as payee’s account will credited on realization.

Data Analysis Of Survey & Hypothesis

Analysis

In the analysis part of this report, we analyzed the results of the survey. To analyze the results we used all the samples that we have used to collect data. Analysis is made through presentation of graphs with Diagrams and we also did some hypothetical test & one sample T-test. In this part, we evaluated the services of prime bank that are provided to the customers. To begin with, the analysis part it is to mention that we have surveyed on 30 customers of Prime Bank Limited to evaluate customer services & customer satisfaction with a survey questionnaire where there were 22 sample questions. The answer of the questions is representing the customer’s perception or attitude & behavior towards customer services customer satisfaction of the Prime bank limited.

One Sample Test:

Hypothesis H1.1

H₀: Not all the employees of Prime Bank are very efficient.

H₁: All the employees of Prime Bank are very efficient.

One-Sample Test

t     Lower

 Table: One-Sample Test Hypothesis 1.1

Statistical Decision: Since the calculated value of Sig. value (.000) is less than the significance value (.05) so H₀ is rejected and there is a strong possibility to accept the alternate hypothesis H₁

Research Decision: Here, we can conclude that Prime Bank Ltd. is quick service provider.

Hypothesis H1.2

H₀: Not all the employees of Prime Bank are very efficient.

H₁: All the employees of Prime Bank are very efficient.

One-Sample Test

t     Lower

Table: One-Sample Test Hypothesis 1.2

Statistical Decision: Since the calculated value of Sig. value (.000) is less than the significance value (.05) so H₀ is rejected and there is a strong possibility to accept the alternate hypothesis H₁

Research Decision: Here, we can conclude that Employees of Prime Bank are efficient & responsive to serve their client.

Hypothesis H2.1

H₀: Not all the services of Prime Bank are meeting with quality standard.

H₁: All the services of Prime Bank are meeting with quality standard.

One-Sample Test

t     Lower

 Table: One-Sample Test Hypothesis 2.1

Statistical Decision: Since the calculated value of Sig. value (.001) is less than the significance value (.05) so H₀ is rejected and there is a strong possibility to accept the alternate hypothesis H₁

Research Decision: Here we can conclude that office environment is very pleasant.

Hypothesis H2.2

H₀: Not all the services of Prime Bank are meeting with quality standard.

H₁: All the services of Prime Bank are meeting with quality standard.

One-Sample Test

t     Lower

Table: One-Sample Test Hypothesis 2.2

Statistical Decision: Since the calculated value of Sig. value (.008) is less than the significance value (.05) so H₀ is rejected and there is a strong possibility to accept the alternate hypothesis H₁

Research Decision: Here we can conclude that Prime Bank has a convenient transaction hour.

Hypothesis H2.3

H₀: Not all the services of Prime Bank are meeting with quality standard.

H₁: All the services of Prime Bank are meeting with quality standard.

One-Sample Test

t     Lower

Table: One-Sample Test Hypothesis 2.3

Statistical Decision: Since the calculated value of Sig. value (.627) is more than the significance value (.05) so H₀ hypothesis is accepted.

Research Decision: Here we can conclude that Management system of Prime Bank is not well established.

Hypothesis H2.4

H₀: Not all the services of Prime Bank are meeting with quality standard.

H₁: All the services of Prime Bank are meeting with quality standard.

One-Sample Test

t     Lower

 Table: One-Sample Test Hypothesis 2.3

Statistical Decision: Since the calculated value of Sig. value (.000) is less than the significance value (.05) so H₀ is rejected and there is a strong possibility to accept the alternate hypothesis H₁

Research Decision: Here, we can conclude that employees of Prime Bank Ltd. are very helpful.

Hypothesis H3

H₀: Cost of service of Prime Bank Ltd is not reasonable compare to other.

H₁: Cost of service of Prime Bank Ltd is reasonable compare to other.

One-Sample Test

t     Lower

Table: One-Sample Test Hypothesis 3

Statistical Decision: Since the calculated value of Sig. value (.792) is more than the significance value (.05) so H₀ hypothesis is accepted.

Research Decision: Here we can conclude that Fees & services charges of the bank are not reasonable compared to other banks.

Hypothesis H4

H₀: Prime Bank is not committed to their client.

H₁: Prime Bank is committed to their client.

One-Sample Test

t     Lower

Table: One-Sample Test Hypothesis 4

Statistical Decision: Since the calculated value of Sig. value (.010) is less than the significance value (.05) so H₀ is rejected and there is a strong possibility to accept the alternate hypothesis H₁

Research Decision: Here, we can conclude that Prime Bank Ltd. is very committed to their customer.

Hypothesis H5.1

H₀: Prime Bank has not a good relationship with all clients.

H₁: Prime Bank has a good relationship with all clients.

One-Sample Test

t     Lower

Table: One-Sample Test Hypothesis 5

Statistical Decision: Since the calculated value of Sig. value (.000) is less than the significance value (.05) so H₀ is rejected and there is a strong possibility to accept the alternate hypothesis H₁

Research Decision: Here, we can conclude that Prime Bank Ltd values its high profile clients.

Hypothesis H5.1

H₀: Prime Bank has not a good relationship with all clients.

H₁: Prime Bank has a good relationship with all clients.

One-Sample Test

t     Lower

Table: One-Sample Test Hypothesis 5

Statistical Decision: Since the calculated value of Sig. value (.462) is more than the significance value (.05) so H₀ hypothesis is accepted.

Research Decision: Here we can conclude that Prime Bank Ltd. does not ignore its general customer’s wellbeing.

SWOT Analysis

SWOT analysis enables an organization to have a comprehensive insight about its current position in the industry compared to the competitors. It provides the organization a scope to improve strategically its position in the market. Here, the internal strengths and weaknesses of Prime Bank Limited as well as the external opportunities and threats are discussed.

Strengths:

• Good Customer Service: Prime Bank Limited provides quality services to the clients compared to its other contemporary competitors. The bank has a very good relationship with its customers. The bank believes in maintaining personal relationship with the customers. One of the major goals of this bank is to build long-term relationship with the customers and to create value for them.

• Innovative Products: Prime Bank Limited has offered various kinds of deposit schemes by which people have opportunity to save their small money and bank is able to earn more for themselves for their clients. Comparatively Prime Bank Limited offers more number of deposit schemes to customers.

• Efficient Administration: Prime Bank Limited has an efficient administration. The work is done in a timely and systematic manner for which the efficient administration is responsible. There is close relationship between the employees and management though the chain of command is maintained strictly. Overall, there is a good balance between the administration and the employees.

• Capital Adequacy: Prime Bank Limited is maintaining a strong capital base. By the end of December 2007, the capital adequacy ratio was 11.50%. The bank has now increased its authorized capital to 4000 million for its expansion program.

Weakness:

• Technology: One of the major weaknesses of Prime Bank Limited is the technology used by the bank. With the change of time, technological advancement is essential to survive in the competition.

• Promotion: When an employee gets a promotion to the next level, he/she gets more compensation. Prime Bank Limited is regular in giving promotion but the employees get later effect of this promotion.

• Training: Prime Bank Limited has its own training institute PBTI (Prime Bank Training Institute) to strengthen the capabilities of human resources. However, there is a lack of specific training for specific jobs. As a result, the employees have to learn things from the job by doing it practically.

Opportunity:

• Branch Expansion: Prime Bank Limited is growing quickly all over the country. Besides expanding in the urban areas, Prime Bank Limited has prospects to open more branches that will eventually enhance the government’s effort at receiving the rural economy as well as reaching more people by better service.

• Training Facility: Prime Bank Training Institute (PBTI) is supporting the bank by offering in house training courses, workshops and seminars. As the bank has its own training institute to enhance the capability of human resources, Prime bank Limited can use this opportunity to train their employees in specific areas and create specialized and expert people for the bank.

• Banking Software: Quality service providing is a major goals of Prime bank limited. Though Prime Bank limited is still lagging behind in upgrading their software system, the bank has the prospect to select high quality banking software, which will make the banking operations easier and smooth.

Threats:

• Level of Competition: Competition is always a major threat for any organization. In recent years, the number of private bank is increasing. These banks always pose a threat for others by coming up with new product line, innovative technology, quality services, etc. Thus, the level of competition rises and creates threats for Prime Bank Limited.

• Technological Advancement: With time, technology is getting advancement and most of the private banks are upgrading their operating system to survive in the industry. Prime bank Limited is lagging behind in this department and still mostly dependent on manual work rather than technology. Advancement of technology is posing great threat for Prime bank Limited.

Findings

This is the most important part of our report titled “Customer Services and Customer Satisfaction Towards Prime Bank Limited”. In findings part we are interpreting the results of our survey on 30 sample customers. The results of this study are stated below in points:

• All employees of Prime Bank are not very efficient and responsive.
• Prime Bank is quick service provider.
• Branch environment of Prime Bank is very pleasant.
• Transaction hour of Prime Bank is not convenient.
• Management system of Prime Bank is not well established.
• Employees of Prime Bank are very friendly and helpful.
• Almost all agree that fees & service charge of Prime Bank is not reasonable compare to other banks.
• Prime Bank is very much committed to their clients.
• Prime Bank values its high profile customer.
• Prime Bank does not ignore its general customer.
• Prime Bank needs some technological advancement.
• Employees need more training from time to time.
• Prime Bank should offer better compensation plan for employee motivation.

Prime Bank, New Eskaton Branch is well decorated. This branch has all kinds of logistic support- well furnished, high security system, central A/C, well lighting etc. There are three departments in this branch and all are well setup. Branch whole environment is very pleasant. Clients are satisfied with that. But there are some problems. Employees are not well trained. That’s why efficiency level is low. If they get proper training customer service may be improved. Customers are, however satisfied with the over all service. Some clients claim that service charge of this bank is not reasonable. So, service charge should reduce if possible, that also increase customer satisfaction level. One thing we found that customers are not satisfied with the transaction hour. Whenever we asked about quality of service, clients agree that quality of service of Prime Bank is good. Because they are offering huge service and that are different. Prime Bank offers those services what customer wants. Prime Bank always tries to maintain the service quality. Prime Bank is committed to their clients. And Bank has a good relationship with their clients. A good relationship can increase customer satisfaction and customer will never switch from the bank. And that will be the good sign for this bank.

Recommendations

Prime Bank Limited has an efficient and excellent management team and performing with a great expertise and care. The limitations can be overcome by some measures to make the performance outstanding. We have some suggestions for Prime bank Limited derived from our observations out of our survey on 30 customers. Those are given below:

• Prime Bank Limited should maintain good relationship with the customers by providing qualitative products and services.
• The number of employees should increase to remove the barriers of providing quick services to the customers.
• The employees must be smart and energetic to serve the customers efficiently.
• Proper training program should arrange for them to serve the customers.
• Complain/suggestions box for the customers may be arranged.
• Prime Bank Limited should arrange the time-to-time promotion system for the employees to increase their effectiveness/ efficiency/ motivation level.
• Monthly providing of account statements may increase customer’s loyalty to the bank.
• The bank should concentrate on interest rate according to the expectation of the customers.
• The capacity of software system must be improved.
• Adequate fund should be provided for ATM booths that can remove complain of majority of sample customers.
• The highest number of sample customers opined that compared to other banks the transaction costs, service charges and other fees of Prime Bank Limited is high. By reducing bank’s internal cost the bank can reduce its transaction costs, service charges and other fees.
• Bank transaction hour should be increased if possible. Then customer will be benefited and satisfaction level will automatically increase.

Conclusion:

Customer service constitutes the core functions of the bank, operated the day-to-day transactions, all the functions of other department is linked with customer service. This is very difficult to satisfy a customer in banking sector because the customers usually make judgement about the quality of services depending on how much satisfaction they are getting from the customer services and the way of judgement varies from customer to customer. Therefore, the customer service providers should be concerned in giving their best efforts to satisfy the need of each individual customer.

Prime Bank Limited started its journey in 1995 with the firm commitment of excellent customer service with a difference. Now, it has established itself as one of the leading and strongest private sector Bangladeshi bank having remarkable progress in all areas of operations despite challenging environment. Credit Rating Information and Services Limited (CRISL) rated Prime Bank as A+ considering its good profitability, best asset quality and diversified product line.

After conducting the interviews, it has been seen that the customers are more or less satisfied with the overall services of customer service and the behavior of employees. They also have some complains which make them dissatisfied in some cases. From the survey, we have noticed that the customers prefer prompt service, Online Banking services, want to avoid more formalities for issuing P.O, opening account etc. Therefore, Prime Bank Limited should try heart & soul to address there issues and pleases those customers in a smart and trusting way.

We have also noticed that Prime Bank Limited has a better position for providing Customer Services compared with other private sector Banks. The bank by way of reviewing, redesigning and developing its customer service program and related activities with the objective of providing excellent service to their customers can restore its leading position in quality service. So, as to gain its expected first position in all areas of operation in near future. There is a word in business sector “A company must diminish from the market when it ceases to serve its customer.” Therefore, it is necessary to provide quality services to make customers satisfied. Only by satisfying the customers competently, a bank can achieve its goal successfully.