Internship Report on AN EVALUATION OF CUSTOMER SERVICE OF INTERNATIONAL FINANCE INVESTMENT & COMMERCE BANK LTD

 Chapter -1

IFIC Bank ltd is one of those banks that plays important role in the economy of Bangladesh. There are ninety seven branch of IFIC Bank allover the country. The activities of the branches are more or less same but there are some differences as per the size of the branches. As I was place to Pragati sarani branch of IFIC BANK as an intern, my focus of the report will be basically on the functions of Pragati sarani branch only.

Basically IFIC Bank, Pragati sarani branch always tried to be right partner for its customers. IFIC Bank is to provide their service to their clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make our position unique in giving quality Service to all institutions and individuals that we care for.

1.1 Objective of the report

Maximization of profit through customer satisfaction is the main objective of the bank. A bank operates its activities not only to earn profit, but also to serve its clients in accordance with their needs and demands. The main objective of the study is to evaluate the efficiency and effectiveness of the IFIC Bank Ltd officials in servicing their customers.

The primary objective of this report is to use the theoretical concepts in analyzing real life of practical orientation in banking activities, which is a partial requirement of the BBA program. But the objective behind this study is something broader. The broad objectives of this report are summarized in the following manner:

•  To make an evaluation of customer service & to find out the level of existing customer services of IFIC Bank Ltd.

• To find out the gap’s between customers’ perception and expectations on service quality provided by the IFIC Bank ltd.

• To analyze the customer opinions towards different services of IFIC bank

• To find out the customer problems and the ways & means for better customer service of IFIC Bank Ltd.

1.2 Scope of the report:

Banking sector is a large and difficult area. A bank has different products; services and different depts. a bank perform different activities.

However, the scope of the report is the performance of customer service of IFIC bank where I have undertaken my internship program. This report help me to understand the clear real time experience about the total management of ific bank ltd.it helps me to understand ,how the bank manage its total process? it also me to understand how they deal with the customer.

This study is done on the basis of performing three month internship program by the researcher in the ific bank ltd.beside this as ific bank ltd is a large bank and its facilities various products and services but t his study covers only the customer service of ific bank. So, the part of the customer’s opinion is taken from that branch.

1.3 Methodology:

The internship program was fully completed in a very efficient and effective business environment. The internship was conducted on 10 January to10th April 2012 through the questionnaire session with the customer and officers of the branch for collecting the required primary data & different published papers for the secondary information.

Primary data is collected from:

       *Opened ended and close ended questions.

       *Personal experience gained by visiting different desks.

       *Personal investigation with bankers.

       *Face to face communication with employees of ific bank ltd.

Secondary data is collected form:

     *Annual reports of ific bank.

     *Journals of the bank.

     *Previous performance matters booklet.

     *Different books.

     *Training papers.

     *Manuals related to the topic.

     *Officials website of the bank.

     * Different brouchers

     *Academic calendar

Data Analysis:

Analysis tool:

SPSS, Statistical package for the social sciences, has been using widely for statistical analysis in social science.SPSS allowed the researchers to perform many data management and statistical tasks.SPSS permits researchers to analyze quantitative input data in many different test and factor analysis.

Analysis technique:

Measuring means of each variable allows the researchers to know the average score of particular set or individual item from all respondents’ points of view. Means of particular set or even the individual item of all respondents would be a good representation of a particular issue of the overall sample.

Factor analysis also used. It is generally used to measure a complex set of variables, and then group them as a new group which has inter-related observed variables to see the pattern of respondents completing the questionnaire in a particular in a subject.

We, therefore, believe using the SPSS software to analyze quantitative data with three analysis techniques so called; means, paired t-test and factor analysis, is appropriate to align with the researchers’ purpose.

1.4 Limitation of the study:

Though internship program is a practical oriented program, it faces some difficulties. The major difficulties I have faced during my period in IFIC Bank Ltd. are as follows:

• Initially, adjustment with the new environment. A sudden change of studentship to a job-like situation is a problem.

• Usually company is not willing to provide their actual data of financial statement.
• Customers are unwilling to give genuine information

• A study that encloses interview of fifty clients can not conclude anything accurately and as such it is based in miss information.

• Personal barriers like inability to understand some official terms, office decorum etc. creates a few problems to me.

Finally, the lack of the depth of my knowledge and the analytical capacity for writing such report is also a shortcoming of this study.

                                    Chapter -2

2.1Historical background of IFIC bank:

International Finance Investment and Commerce Bank Limited (IFIC Bank) is banking It was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions aboard. Company incorporated in the People’s Republic of Bangladesh with limited liability. It was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions aboard. In 1983 when the Government allowed banks in the private sector, IFIC was converted into a full fledged commercial bank. The Government of the People’s Republic of Bangladesh now holds 32.75% of the share capital of the Bank. The Government of the People’s Republic of Bangladesh now holds 32.75% of the share capital of the Bank. Directors and Sponsors having vast experience in the field of trade and commerce own 11.42% of the share capital and the rest is held by the general public.

2.2Strategic of the bank:

IFIC Bank mainly follows top down approach to take necessary decisions for the company. Basically they follow the centralize strategy where the head office of the bank control and monitor all the activities of its branches. in case of marketing strategy they basically depend on “word of mouth” as they are already well reputed for its long term service in the banking industry.

The branches of the bank all tile important trading and commercial center in Bangladesh. At present it has 76 branches within Bangladesh. all the branches are equipped with computers in addition to modern facilities, logistic and professionally competent manpower.

2.3Mission of IFIC Bank:

Our mission is to provide service to our clients with the help of a skilled and dedicated workforce whose creative talents innovative actions and competitive edge make our position unique in giving quality service to all institutions and individuals that we care for.

We are to welfare and economic prosperity of the people and community, for we drive from them our inspiration and drive for onward progress to prosperity. we want to be leader among bank in Bangladesh and make our indelible mark as an active partner in regional banking operating beyond the national boundary. In an intensely competitive and complex financial and business environment, we particularly focus on growth and profitability of all concerned.

2.4 Vision of the IFIC Bank:

   * Provide the greatest return to their shareholders by achieving sound profitable growth.

    * Be perceived by customer and staff as the best wherever it operates.

    * Have staff of the highest caliber.

    * Excel in the way to work together to make decision and get things done.

2.5Goals and objective of the bank:

The objective of the bank are to promote joint participation of government and private sponsors to established joint venture banks, financial companies and affiliates abroad to satisfy their customers.

It conveys its objective via their motto:’ you’re satisfaction first.’

     *TO establish, maintain, carryon, transact, undertake and conduct all types of banking, financial, investment, and trust business in Bangladesh and abroad.

      *To carry on any relating to wage earners scheme as may be allowed by Bangladesh bank from time to time including maintaining of foreign currency accounts and any other matter related thereafter.

 *To conduct or negotiate all kinds of loan, and assistance, private or public, from any source, local or foreign, and to take all such steps as may be required to complete such deals.

     *To form, organize, assist, participate, or aid in forming promoting or organizing any company, bank, syndicate, and institute or any holding or subsidiary.

2.6Board of Directors:

2.7Management structure:

The thirteen members of the Board of Directors are responsible for the strategic planning and overall policy guidelines of the Bank. Further, there is an Executive Committee of the Board to dispose of urgent business proposals.

Besides, there is an Audit Committee in the Board to oversee compliance of major regulatory and operational issues.

The CEO and Managing Director, Deputy Managing Director and Head of Divisions are responsible for achieving business goals and overseeing the day to day operation.

The CEO and Managing Director is assisted by a Senior Management Group consisting of Deputy Managing Director and Head of Divisions who supervise operation of various Divisions centrally and co-ordinates operation of branches.

Key issues are managed by a Management Committee headed by the CEO and Managing Director. This facilitates rapid decisions.

There is an Asset Liability Committee comprising member of the Senior Executives headed by CEO and Managing Director to look into all operational functions and Risk Management of the Bank.

2.8Risk Management:

In View of the global recognition towards need of an effective risk management and control systems in financial sector, IFIC Bank being cognizant of the importance of the subject, has prepared and implemented the following policy guidelines on Risk Management:

      • Credit Risk Management
• Asset Liability Management
• Foreign Exchange Risk Management
• Internal Control & Compliance
• Prevention of Money Laundering

2.9Joint ventures abroad:

a) Bank of Maldives limited:

IFIC is the first among the banks in the private sector to have operations abroad. In 1983, the bank set up a joint venture bank in Maldives known as bank of Maldives limited (BML) at the request of the government of the republic of Maldives. This is the only national bank in that country having branches throughout that country. IFIC bank managed the affairs of BML from 1983 to 1992.IFIC bank sold its shares in 1992 to the government of the republic of Maldives and handed over the management of BML to Maldives government.

B) NIB Bank Ltd. Pakistan:

IFIC Bank had two branches in Pakistan, one in Karachi and the other in Lahore. Karachi branch was opened on 23^rd December 1993.

To meet the minimum capital requirement(MCR) of the state Bank of Pakistan, the overseas branches in Pakistan have been amalgamated with a reputed leasing company in Pakistan named national development leasing corporation ltd.Therefore the existence of our above overseas branches has ceased w.e.f. 3^rd October 2003.

c) Nepal Bangladesh bank ltd (NB Bank):

Nepal Bangladesh Bank ltd.(NB),a joint venture commercial bank between IFIC  bank ltd.and nationals, started operation with effect from June 06,1994 in Nepal with 50%equity from IFIC Bank ltd.

The Bank has so far opened 17 (seventeen) branches at different important locations in Nepal .IFIC Bank presently holds 25% shares in NB Bank

d) NepalBangladesh Finance & Leasing Limited (NB Finance):

Nepal Bangladesh & Finance & Leasing co. Ltd.(subsequently renamed as Nepal Bangladesh Finance &Leasing Ltd.),another joint venture leasing company between IFIC Bank Ltd.and Nepali Nationals, started its operation on April 18,1999 in Nepal.IFIC Bank presently holds 15% share in the company.

e) Oman international exchange (OIE):

Oman international exchange LLC (OIE), a joint venture between IFIC Bank limited and Oman nationals, was established in 1985 to facilitate remittance by Bangladeshi wage earners in oman.IFIC Bank holds 25%shares, and the balance 75% is held by the Omani sponsors. The exchange company has a network of 10 branches covering all the major cities of Oman. The operations of the branches are fully computerized having online system.

2.10 Number Of all branches Of IFIC Bank in Bangladesh:

In Bangladesh there are 97 branches. There are 7 divisions in Bangladesh. These are as follows:

1. Dhaka Division-there is 48 numbers of branches.
2. Chittagong Division-there are 19 number of branches
3. Barishal Division-1 Branches
4. Rangpur Division-3 Branches
5. Khulna Division-9 Branches
6. Sylhet Division-8 Branches
7. Rajshahi Division-9 Branches

Map of the Branches of IFIC Bank Limited

2.11 Technology & Number of ATMs:

Since the beginning of its journey as a commercial bank in 1983, IFIC Bank has been giving great emphasis on the adoption of modern technology. It became the pioneer in the field of automation by introducing computerized branch banking right in the same year. Subsequently, all the branches were brought under similar automated platforms with upgraded software applications to offer all the critical banking features. At present all 65 domestic branches are fully computerized under networked environment.

The Bank has taken up a new project with Missy International Banking System Inc. (UK) to further upgrade its banking operation to state-of-art world class on-line banking solutions to provide faster and even more convenient centralized services to the clients.

Besides, the Bank is also operating fully on-line Automated Teller Machine (ATM) services under the banner Q-Cash at a number of locations in Dhaka and Chittagong. The ATM facilities are available to the customers at Q-Cash booth.

Since the importance of Web presence in the Internet is absolutely critical, IFIC Web Site www.IFICbankbd.com has long been launched for the convenience of the customers, where all the activities and information are constantly being posted and updated. A Central Mailing System is operational at the Head Office to let the customers have direct electronic access to the selected staff

2.12 Human Resource Development (HRD)

Human Resources Development is focused on recruitment and in-house training for both on the job and off the job Bank staff members through the Bank’s Academy. IFIC Bank Academy – the oldest institution in the private sector – was conceived of as an in-house training center to take care of the training needs of the Bank internally.
Frequently outreach programmers are organized to meet demand for new and specialized skills.

During its 23 years of existence, Academy not only conducted courses, workshops and seminars as required by the Bank, but it also organized training programmers for the Bank of Maldives, Nepal Bangladesh Bank Limited and Oman International Exchange LLC. In addition, Academy has also the credit of organizing system of Bank of Maldives.

In addition to conducting courses internally, The Academy also selects candidates for nomination to various courses conducted by distinguished training organizations in the country including Bangladesh Bank Training Academy and Bangladesh Institute of Bank Management.

The Academy also re-designs its courses, programmers etc, regularly to meet the requirement of new skills arising out of various directives, guidelines of the Central Bank and significant changes in the banking sector from time to time.

2.13Values of the bank:

1) Strong customer focus and building relationship based on integrity, superior service and mutual benefit.

2) Striving for profit and sound growth.

3) Working as a team to serve the best interest of the group.

4) Relentless in pursuit of business innovation and improvement.

5) Values and respect to people and making decision based on merit.

6) Recognition and reward based on performance.

7) Valuating open and honest communication.

8) Responsible, trustworthy and law –abiding in every respect.

3.1) an evaluation of customer service of IFIC bank:

Customer service is the most vital factor for any organization. When this question comes about a bank than it becomes more important because a bank directly involves its customer. To run the business safe and soundly a bank must have to maintain a good relation with each and every customer.

Basically a bank provides cash deposit service, utility bills payment service, small finance, corporate or business finance services, loan related service etc. IFIC Bank also provides all kinds of services for its customers.

IFIC Bank has got that much qualified service team who can provide the best service to the customers and can make the customer a satisfied one.

                     *Auto Loan

                     *Customer Loan

                     *Easy loan

                     *Porua loan

                    *Flexi Loan

                    *Thikana Loan

                    *Profession Loan

                    *Retail Loan

3.2) SMS Banking Service:

Welcome to the convenience of accessing your banking needs from anywhere any time .IFIC Bank Limited catered the demand of time in the era of modern banking technology through SMS Banking Service .It is indeed a fast. Secure convenient .economical and quickest way of banking. The service is available round the clock seven days a week. Get real – time banking information and be in touch any time with IFIC Bank from your mobile. You can check your balance, account information or even get your mini account statements through banking service.

Salient Features of SMS Banking

3.3) Locker Service:

IFIC Bank allows locker service a customer to keep their valuable in a safe and secured place and access the same at their convenient time.

Locker service offers the following facilities to its customer:

1. Friendly and personalized services from the locker custodian.
2. Complete privacy: A locker holder can operate the locker in private environment.
3. Convenient location of locker complexes.
4. Complete safety and security: Locker complexes have the best available security features such as:
5. Alert, round the clock security guard.
6. Strong, heart resistant steel lockers in reinforce concrete steel vaults for maximum protection.
7. Sophisticated anti-burglary alarm system.
8. Highly advanced smoke –sensor devices placed all over the ceiling backed by the fire fighting equipments.
9. Protection against varying weather conditions.

But this service is unavailable on weekends and government holidays.

Available locker size and charges;

Any one can open the locker service account. He/she has to deposited 1000/AND NEED 2 Copies passport size picture for opening this account.

3.4 Cheque book and ATM Service:

The customer service department helps the customer to collect new cheque book as per customer demands. The cheque only can be stopped in two circumstances, if the customer loss the cheque or if the cheque is being stolen.

There are different services for ATM card users like they can apply for new ATM card. The customer can apply for the lost ATM card. The bank for free of charge provides an ATM if it’s normally being expired. Customers collect their captured card after 24 hours from customers’ service department without any fees. Customer can collect their captured card from their nearest branch.

3.5) Rates of interest on Deposit of IFIC Bank limited:

3.6 Banks major functional department & other Activities:

General banking division:

There are different types of account provided by IFIC bank for considering the highest benefit of the consumers. such as saving account(SB),current account(CD),short term deposit(STD),fixed deposit receipt(FDR),etc are offered by this department. General banking department is the heart of banking activities. Total banking procedure start with this department performs the core function of bank operation of bank operation and it is known as” Retail Banking.” They take the deposit from the customer and meet their demand for cash honoring their checks. It opens new accounts, remit funds, issues bank draft and pay order. Account opening section, remittance, Checks clearing, cash, FDR, are part of general banking.

General credit Division:

A wide range of products and services, such as different types of loans are offered by this department. It faces continuous challenge from the local private banks, which mainly specializes in the consumer banking. As a result, it has to develop new products and services to ease the competition on a continuous basis. The approval is mainly based on the risk analysis of the corporate clients done by the corporate banking division.

Finance and account division:

This department performs the following activities:

• Source of Finance
• Administration, audit and back office operation.
• Salary & Provident fund
• Taking care of taxation and financial control of the bank.
• Decision making related to administrative activities.

Recovery Division:

Recovery of stuck-up loans is a major concern for the bank. This division helps general credit and project finance divisions to recover the loans and take legal action those creditors. Some time there is a some usual recovery. Recovery from written off loans goes to income account of the bank.

Project Finance Division:

IFIC Bank’s corporate clients mainly comprise the top local and multinational companies operating in Bangladesh. The main objective of this department is to build and maintain positive relationship with their clients. As a result, each and every company is assigned a relationship manager, who maintains regular contacts with clients. Moreover this department following facilities to its clients:

• Project finance
• Syndicated loans
• Bonds and guarantees, etc.

Treasury Division:

The foreign exchange and money market operation of the IFIC Bank is broad. Exotic currencies happen to be one of its specials areas of strength’s 24 hour service is provided to customer in Bangladesh through the banks network of dealing centers placed in the principal of the world. The banks treasury specializes in offering solutions to who wish to manage interest rate and currency that result from trade, investment and financing activities of other dynamic economics of the region.

Foreign trade division:

All the overseas branches are under the control of this division the regularly communicate with those branches and solve problem of those branches.

Marketing Division:

It basically handles all promotional campaign, branding both consumer and corporate products and services for IFIC bank.

Audit and inspection Division:

This division helps the bank accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance process. it also assist development of the process for smooth operation of various department and branches, detect major deficiencies in the branches, review the activities and organizational structure of the internal audit function.

Internal control and compliance:

Banking involves high risk, the presence of effective internal control system and accountability is vital to ensure smooth operation of the bank. it is the process affected to provide reasonable assurance for the achievement of the objective of the bank, compliance with applicable laws, rules and regulation.

Law Division:

In Bangladesh local banking laws regulate and riles set by the ministry of finance and Bangladesh bank is handling by this division law division has to take car of are:

• Any kind of legal issues
• Compliance advisory service

3.7(Account opening section):

 This section opens current deposit (CD), savings account (SB), and short term deposit (STD). Fixes deposit receipt (FDR). Most vital work starts from here as selection of customer is very important for the bank success and failure. If the account holders do money laundering through this account than the bank will be legally responsible for that and bank has to answer to Bangladesh bank or customer may occur fraud and forgery by this accounts and thus destroys goodwill of banks. In branch account opening officer follow some rules which are guided by IFIC Bank manual and senior opening form signature is must in this case. Managers signature is must on every account opening form as permission for opening the account.

3.8(Target Customer of IFIC Bank pragati sarani Branch):

• Individual person
• Sole proprietorship firm
• Government organization
• Partnership firm
• Bank employee
• Private limited company
• Semi government organization

3.9 Types of account:

Deposit is a life blood of a commercial bank. Since commercial bank deals with other peoples money, without deposit there is no business for the commercial bank. Accepting deposit is one of the main functions of commercial bank. IFIC banks deposits can be broadly classified as follows;

a) Current Account:

Current account is most suitable for private, individuals, traders, merchants, importers and exporters, mill and factories owner etc. For opening of a current minimum deposit of tk.2000 is required along with introductory reference. No interest is given the current account deposited money. One can enjoy maximum flexibility and convenience when he/she opens a current account with IFIC bank limited. This account offers:

• Any number of transactions a day
• Free check book
• Statement of account at any desired frequency
• Statement by fax on demand

b) Saving Account:

The saving account is primarily for small scale savers. The main objective of this account promotion is thrift. Hence, there is restriction on withdrawals are permitted only against prior,

• Minimum account of tk.1000.00is required as initial deposit.
• Frequent withdrawal is not encouraged.
• 7days is required for withdrawal of large amount
• The rate of interest is 6.00% against SB account.

c) Short-term Deposit (STD) Account):

In short term deposit account, the deposit should be kept for at least six month to get the interest. The STD account is a very important class of account in this bank. The minimum amount of balance has to be maintained with STD account is tk.25000 interest is given at a rate of 4.5% which is less than savings account. Normally various big companies, organizations, government departments keep money in STD account. For this type of account at least 7days to get interest. Prior notice is required for the withdrawal of money from STD account. The account holder must give 7 days before the withdrawal that is why STD is also called “seven days notice” current account.

d) Fixed deposit receipt:

Fixed period specified in advance these deposits are time deposit. Normally the money   on a fixed deposit is not repayable before the maturity date of a fixed period. At the time of opening the deposit account the banker issued a receipt acknowledging the receipt of money on deposit account. It is popularly known as FDR. An interest rate ranging from 10.50 percent to 11.50 percent is offered depending on different amount and tenure of deposit. Fixed deposits are the deposits in which an amount of cash is deposited in bank.

e) Business account:

To open an account for sole proprietorship, limited company account, Partnership Company the applicants are required to bring all the materials that have mentioned before. Extra required materials for business accounts is trade license, TIN number and for partnership & ltd. Company partnership deed is required.

3.10 Transfer of an account to another branch:

Sometimes the customer wants to transfer his account to another branch due to various reasons.IFIC Bank, pragati sarani branch also gives these kinds of facility to the customer. In this case, they will have to submit an application to the branch manager stating the reasons. The officers verify the signature and finds out the balance of the account holder. The holder also submits the rest check leaves along with the application. Then the officers issue an inter branch credit advice (IBCA) to that branch and a debit voucher with the balance of deposit in that account. He also sends the account opening form and specimen signature card to that new branch. The new branch officer verifies the customer signature with account opening form supplied to him. The amount mentioned in the (IBCA) considered as the initial deposit of the new branch.

3.11 Closing procedure of an account:

For two reasons account can be closed –

     By banker:

Banker has the right to close the account if the customer does not maintain any transaction six years and the balance is become lower than the minimum balance.

 By Customer:

If the customers want to close his account he will write an application to the manager and the manager give the proper instruction to the officer then close the account.

Firstly, the concerned customer has to apply for closing his/her account .then to close the account the cheque book is to be returned to the bank. After charging the account closing charge the manager will close the account .closing charges are as follows;

• For bellow 6 months 100 tk
• For over 6 months 200 tk.

The rest amount of money laid in the respective account is paid to the customer by a payment order. In case of payment order certain commission and vat are cut off from the account.

3.12 Purchase of sanchaya patra of a customer:

IFIC Bank is providing the free service for the account holders by purchasing sancha patra on behalf of the customer. if an account holder wants to purchase sancha patra than he /she can apply directly from any branch of IFIC Bank. The fund automatically transferred from the account as much as the customer wants to purchase based on the government rules and regulations. The banks collect the coupon interest for the customer.

3.13 Different types of queries:

Many customer come to the branch with different types of queries. Most of the common queries are given below;

• To know about loan facilities
• To know the account position
• To know the balance
• To know about any fund transfer
• Enquiry about lost cheque, lost ATM card.

These are the most common queries of the customer. Queries vary according to situation of other instances.

3.14 Cash section:

Cash department is the most vital and sensitive organ of the branch as it deals with all kinds of cash transactions. This department starts the day with cash in vault. Each day some cash that is opening cash balance are transfer to the cash officers from the cash vault.net figure of this cash receipts and payments are added to the opening cash balance. The figure is called closing balance.

3.15Function of cash department:

Cash payment or check cancellation process

3.16Books Maintained by this section:

3.17 Check clearing and remittance department:

This department receives cheque from its depositors for the purpose of collection by a deposit slip over the counter crediting their account. Clearing of cheque is done through the clearing house in Bangladesh bank. Everyday the first house starts at 9a.m and house at 5 p.m.

The main objective of clearing and remittance department is to provide an extra facility to the customer other than cash receipt and payment. We can divide this department into two parts. One is clearing & transfer delivery section, and the other one is local remittance section. In IFIC Bank there are three employees, working in this department. I am trying to present my findings in the following parts regarding these two sections.

3.18 Inward transfer delivery:

For payment of bills present to a particular branch of the bank through another branch of the bank, the procedures are the same as those applicable to inward clearing. The only expectation is that there are no clearing house formalities. The concerned branches of the bank directly deal with inter –branch clearing

3.19 outward transfer deliveries:

For collecting of bills by a particular branch of the bank, drawn on another branch of the bank the procedures are the same as those applicable to outward clearing. The only expectation is that there are no clearing house formalities. The concerned branches of the bank directly deal with inter branch clearing

3.20 General instruction on clearing:

Banks locker service is also delivered from this department. In IFIC Bank pragati sarani branch this department is maintained by two officers.

3.21 Local remittance:

Sending money from one place to another place for the customer is another important service of banks. And this service is an important part of country’s payment system. For this service, people; especially businessmen can transfer funds from one place to another place. These are:

1)      Demand draft

2)      Pay order

                         3) Telegraphic Transfer

                         4) Telephone Transfer

                         5) Mail Transfer-Time consuming and not frequently used

Money transfer:

IFIC Bank limited earns a huge amount of money by selling several customers services. The IFIC Bank offers the following services to its customer.

Demand Draft (DD):

DD is the most popular instrument of remitting fund. it is an order to pay money drawn by one branch of a bank upon another branch  of the same bank for a particular sum of money which payable to order and demand.

Commission of DD as under:

Postal charge                                             10/=

Amount of DD                                   commission (TK)

Minimum charge                                         25

Payment order:

A payment order is an instrument from one branch to another branch of the bank to pay specified sum of money to the person named therein of his order. Unlike cheque, there is no possibility of dishonoring pay order because before issuing bank takes our money of the pay order in advance.

Telegraphic Transfer (TT):

TT is the fastest means of money between two branches of the same bank. The formalities of tt are as MT, there are taken some extra charge for telephone. Telegraphic and telephone transfer are almost the same, both are them are known as TT in short.IFIC bank helps people transfer their money from one district to another in the quickest possible time at the lowest service charge.

3.22 Advance Department:

Introduction:

Banking is essentially a business dealing with money and credit. Like over other business activity, banks are profit oriented. It depends mainly on how much profit they can make. Profit is the yardstick for the bank to move on. They work as reserves of savings of the community and also as lenders or investors for trade business and industry.

Banks gives loans and advances to traders, business persons and industrialists against the security of some assets or on the basis of the personal security of the borrower. if this section is not properly working the bank may become bankrupt. This is the important because it is the earning unit of the bank. Now the question may gradually arise how the bank will provide interest to the clients and the simple answer is advance. Why the bank provides advances to the borrowers:-

• To earn interest from the borrower and give the depositors interest back
• To create employment by providing industrial loans
• To pay the employees as well as meeting the interest groups
• To accelerate pay the economic development by providing different industrial as well as agricultural advances.

Credit is continuous process. Recovery of one credit gives rise to another credit. In this process of revolving of funds, bank earns income in the form of interest. A bank can invest its fund in many ways. Bank makes loans and advances to traders, businessmen, and industrialists. Moreover nature of credit may differ in terms of security requirement, disbursement provision, terms and conditions etc.

Bank often uses loan and advances as an alternative to one another. Academically advances is the combination such items where loans is a part only. For this credit section of the banks is known as advance section. it is the main profit source of the bank. Banking business is like all other profit –oriented business. It depends mainly on how much profit they can make. Profit is the yardstick for the bank to move on. Banking is a business that deals only with money and credit. Banks are profit oriented. Huge amount of income derives from loans and advances. Banks makes loans and advances to traders, businessman, and industrialists against the security.

Applicant applies for the loan in the prescribed from of bank. Getting credit information:

               1. Personal investigation

               2. Confidental report from other bank head office/branch/chamber of the commerce

               3. CIB report from central bank

The loans and advance department gets a form filled by the party seeking a lot of information. The information is listed bellow:

1. name and address
2. constitution or status of the business
3. particulars of properties, partners and directors
4. background and business experience
5. proposed equity debt ratio
6. other relevant information
7. details of securities offered
8. financial statement for the last three years
9. nature and details business/ products

                10. Particulars of personal assets, names of subsidiaries of share holding and nature of business

3.23 Relevant matter of document checked before sanctioning any loan:

• There must be an account of the person want to take loan. The account must transfer for not less than 3 months to 6 months. Otherwise the loan will not be sanctioned.
• The banker should check through security whether it is enough or not.
• The purpose what the loans is taken by the borrower is another important matter to see and check. Whether the purpose is business or else must be checked with its marketability.
• After checking the duration of account than the transaction made by the account holder must be checked. the debit credit position must be also checked, because it is related with future dealings of the borrower

3.24Proper supervision of the project:

If such provision is kept in the sanction contracts the bank officials go the project area and observe how loan is utilized. of no such close to supervise the loan is added, even the bank can see the performance of the project.

3.25Loan recovery:

In general the loans are repaid in installment. Some loans are repaid all at a time. If any loan is not repaid in usual cause to action legal procedure is followed to recover the money.

3.26 Documentation of the loan:

These are the most common documents for creation of above mentioned charges and for other formalities of sanctioning loan.

1. Demand promissory note: here the borrower promises to pay the loan as and when demand by bank to repay the loan.
2. letter of arrangement
3. letter of continuity
4. tax paying certificate
5. letter of installment
6. letter of hypothecation of goods and capital
7. personal guarantee of the owner of the property
8. guarantee of all directors of the company
9. Resolution of the board of director to borrow fund to execute documents and completes other formalities.
10. letter of disclaimer: by this letter the borrower withdraws his all claim on the claim of the property/goods lined/ mortgage

Bank generally offers different kinds of credit facilities to their customer. They are in different forms of categories. The credits facilities may be broadly classified into four categories. They are as follows:

            1. Loans

            2. Cash credit

            3. Overdraft

            4. Bills purchased and discount

Loans:

In case of loan, the banker advances a lump sum for a certain period at an agreed rate of interest. The entire amount is paid an occasion either in cash or by credit in this current account, which we can draw at any time. Loans may be demand loan or a term loan.

Types of loans

The different types of loan that banks give to his party are as following:

• Term loan:
  • Industrial
  • Transport loan
  • House building loan
  • others

• Staff house building loan
• Loan against trust receipt
• Consumer credit
• LIM(loan against imported merchandise)
• Loan interest/demand loan

Before give credit department has to do certain functions. first they have to send CIB to Bangladesh bank, lending risk analysis, and issuance of bank guarantee after completion of these jobs if the result is positive than officer can sanction loan.

Cash credit:

Cash credit is given through cash credit amount. cash credit amount is basically a current account, however a little different exist between a current account and cash credit is that the former is intended to be an account with credit balance and letter and account for drawing of advances. Operation of cash credit is to meet working capital need of traders, farmers and industrialists.

Overdraft:

Overdraft is that advance which is allowed on current account operated by check. the customer may be sanctioned a certain limit within which he can overdraw his currentA/C within certain period the customer can withdrawals or deposits any numbers of within his limit. Bank gives overdraft in following two ways:

• SOD (secured overdraft)
• Cash credit

Secured overdraft (SOD):

Secured overdraft is a continuous credit facility to the customer of the bank. This kind of credit facility is given on following security:

• Various kind of sanchay patras
• Government security
• FDR (fixed deposit receipts)
• Shares
• ICB unit certificate
• Work order

If any customer wants to get SOD facility from the bank, he has to submit an application to the bank manager it must be done in prescribed from of the bank. After getting application form the bank made an office note. in this note bank officer write down the following things:

• Nature of limit
• Extent of limit
• Security
• Margin
• Rate of interest rate
• Validity

SOD limit for FDR<BSB, PSP, ICB unit certificate:

• Two care from branch level
• Above from head office

SOD limit for different kinds share:

• 20 lac from branch label
• If it  is more than 2.0lac,the branch has to take approved from head office

For share bank can sanction 70% credit facility for “a’ grade share and 60% for “B” grade share. In case of SOD on share the last six months average value or present value, which one is higher, is considered.

SOD on work order:

If any party wants to get SOD facility from the after getting work order, he has to submit an collateral security .but now bank do not give any SOD facility against work order if bank see that all of his papers are eligible for getting SOD facility, bank asks him to get a power of attorney to the for receiving all kinds of payment for the work. He can get up to 50% of the amount of the work that he has to done. Then the authority sends a letter to the bank and after getting the letter bank credits the OSD amount to the customer’s current account.

The following charge documents are taken from the customer:

• D.P(promissory note):Three types

1) Single DP note

2) Joint DP note

3) Joint and several DP note

• Letter of arrangement
• Letter of continuity
• Letter of lien for advances against share, stocks and

Cash credit (CC):

Cash credit is the favorite mode of borrowing by traders, industrialist etc. for meeting their working capital. Cash credit is a kind of continuous overdraft. In banking system cash credit is given for two purposes are as following:

v  Working capital

v  Trading purpose

It is favorite modes of advance for the customerfor cash credit facility banks allow a limit for his customer. The customer can make continuous transaction with in that limit’s is given for one year. After one year the customer can renew his cc facility.

Interest:

For CC facility interest is counted daily basis. That means customer has to only that amount of interest which is outstanding in his CC account. Interest is cut off from customer current in tram wise.

Mode of security:

For cc banks take two type of security. These are as following:

v  Pledge

v  Hypothecation

In branch level bank cannot give more then 30 lac taka to his customer. But if bank want, they can give more then 30 lacs.the branches has to get approval from head office of the bank.

For giving cc bank takes following charge document:

v  DP note

v  Letter of arrangement

v  Letter of continuity

v  Letter of hypothecation of goods

v  Stock of goods report

v  Personal guarantee of all the director of the company

v  Deed on additional charge on the fixed assets of the company

v  Form for filling charge with register of joint stock companies

v  Resolution of board of directors

v  Insurance policy for stock

In cc facility bank only allow 50% credit facility of the stock that the customer has been pledge or hypothecation. Bank gives CC only for one year. After one year customer has to renewal it.

Bills purchases and discount:

Banks granted advances to their customers by discounting bill of exchange or pro-note

Security against advances;

The different types of securities that offered to a banker are as follows:

A. immovable property

B. movable property

1)      Pratirakshay sanchay patra, Bangladesh sanchay patra, ICB unit

2)      Certificates, wage earner development bond

3)      Fixed deposit receipt

4)      Shares quoted in the Dhaka stock exchange and chittagong stock exchange

5)      Pledge of goods, produce

6)      Hypothecation of goods, produce and machinery

7)      Fixed asset of manufacturing unit

8)      Shipping documents

Modes of charging security:

1. Lien:

A lien is right of banker to hold the debtors property until the dept is discharged, bank generally retain the assets in his own custody but sometimes this goods is in the hand of third party with lien marked. Lien gives banker the right to retain the property not the right to sell. It can be made on movable good

1. Pledge:

Pledge is also like lien but here bank enjoys more right. Bank can sell the property without the intervention of any court, in case of default on loan, but for selling proper notice must be given to the debtor.

   3. Hypothecation:

Physically the goods remained in the hand of debtor. But the documents of title of goods are handed over to the banker. The method is also called equitable charge. Since the goods are in the hand of borrower, bank inspects the goods regurly to judge its quality and quantity for the maximum safety of loa

    4. Mortgage: Mortgage is created on the immovable property like land, building, plant etc. most common types of  mortgage is legal mortgage in which ownership is transferred to the by registration of the mortgage deed. Another method called equitable mortgage

3.27advance against fixed deposit receipt:

1. Fixed deposit receipts:

Advance against fixed deposit receipt will be subject to credit restrictions imposed from time to time by head office/Bangladesh bank. Scrutinize the fixed deposits with regard to the following points:

1.                        i.            The fixed deposits receipt is not in the name of a minor.

1.                      ii.            The depositor on revenue stamp of adequate value discharges in hand his signature is verified.

1.                    iii.            Creation of liability on fixed deposit issued on join names by any one of the depositors is irregular.

1.                    iv.            Lien in the partial amount of deposit shall not be accepted.
2.                      v.            If the deposit receipt has been issued by the branch –allowing advance, line against that specific deposit receipt to be marked in the fixed deposit register of the branch

3.28 PRODUCTS:

Simply product is a solution of customer needs and wants. A product is an element in the market offering. Product is anything that can be offered to a market for attention, acquisition use or consumption that might satisfy a want or need.

International Finance Investment and Commerce Bank Limited (IFIC BANK) is a banking company incorporated in the People’s Republic of Bangladesh with limited liability. It was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions abroad.

3.29 FIVE PRODUCT LEVELS

1. POTENTIAL PRODUCT:

Top management future ideas, policies. At the fifth level stands the potential product. This encompasses all the possible augmentations and transformations the product might under go in the future.

2. AUGMENTED PRODUCTS:

Bankers offer to entertain client .At the fourth level. The marketer prepares an augmented product that exceeds customer expectations. For example: Bankers offer how you are sir take a cup of coffee. Wish him \her good luck etc

3. EXPECTED PRODUCT:

 Bankers Behavior and attitude, at he third level .the marketer prepares an expected product. A set of attributes and conditions Buyer normally expect when they purchase the product. For example: Security of money. Correct transaction .smiling face and marketers behavior from Bank staffs.

4. BASIC PRODUCTS: 

Infrastructural facilities, at the second level the marketer has to turn the core benefit into a basic product. For example: Banks environment. Air conditioned, toilet, decoration etc,

5. CORE BENEFIT:

 Money Transaction, The most fundamental level is the core benefit. The fundamental service or benefit that the customer is really being in case of Bank money transaction is the core Benefit of product.

3.30 PRODUCT DECISION (IN BANK)

Tight product decision in the tight time is essential for all organization. If focuses on decision about product attributes branding, packaging, labeling and product support services IFIC BANK LIMITED

PRODUCT ATTRIBUTES:

Developing a product or service involves defining the benefits and design. In case of IFIC Bank Limited .various deposit schemes are product

Branding:

Branding is a name firm  Sign symbol ,on design or a combination  of these intended to identity the good or services of one seller or group  of seller or group of sellers and to differentiate then from those of competitors .For example CSS (Contributory Saving Scheme )

Packaging:

Packaging refers the activities of designing and producing the container of wrapper for a product .For example attractive brochure   CSS,

Labeling:

The level identifies the product or brand .such as the distinct characteristics of CSS A/C Opening .Label may be a part of packaging.

Product Support Service:

Product support services that augment actual products .More and more companies are using product support services as a major tool in gaining competitive advantage. Incase of IFIC BANK LIMITED product 80% loan facility after 3 years CSS.

 NEW PRODUCT INTRODUCTION:

New product introduction can be classified according to

1) Newness to the marker

2) Newness to the company resulting in the following six categories of new product

3) New to the world Product.

4) New product lines.

5) Additions in the existing product.

NEW PRODUCT PLANNING PROCESS:

New product planning is guided by customer needs analysis:

UPCOMING SERVICE

Related Link

1 ATM

2 BANKING SOFTWARE

3 TELE BANKING.INTERNET BANKING

Banking Software

Robust banking software which will integrate the total banking operation and provide total solutions to customer needs is under selection. Implementation is expected soon.

                              Chapter-5

                           Major findings

A combination of qualitative and quantitative approached is used. SPSS was used as an analysis tool to measure sample statistics such as customer expectations.  Demographic information collected from the respondents and these variables have to be coded as well for analysis overall customer:

• Maximum customer choosing IFIC Bank because it is a modern Bank.
• Maximum customer feels about the environment is very friendly.
• 56% Customer like most saving account.
• 47% customers have looked on it takes more times to gets the service.
• 50% tellers behave normal with a customer.
• 50% customers think about out ATM services that it is not so first.
• 50% customer say about service department they are not so out spoken.
• 54% customers have opinion high about their charges.
• 40% customers have opinion nothing special about credit facilities.
• 47% customers have looked on their on line service.
• About local remittance department, 50% customers supported easier to transaction.
• 48% customers have very slowly to fulfill (KYC) form with the help of the officer.
• 53% customers’ opinion high about their loan interest rate.
• 50% customer’s opinion high about their fixed deposit rate.
• 51% customers are preferred high about their switching cost.
• 47% customers are preferred on SOD of their loan.
• 50% customers have looked on medium about their credit card charges.
• 44% customers are disagreeing about the tellers efficient in work.
• 54% customers said sitting problem always they face in the bank.

In the above, we see that maximum customers’ perception of all dimensions is less than meet the customers’ expectation.

                            Chapter-6

                  RECOMMENDATIONS

Recommendations of this report have been made on the basis of research findings on IFIC Bank. It is very difficult to recommend about this topic because of research limitations and unavailability of data.

It is a large organization and banking complex. So it is difficult for me, by my little knowledge, to recommend solving the problems. In order to get competitive advantage and to deliver quality service, top management should to modify the services:

• As there is no classified loan, branch should monitor the loans advances closely to avoid classification in future.
• IFIC Bank should also monitor the performance of its competitors in the field of foreign trade.
• To deliver quality service top management of this branch should try to mitigate the gap between customer’s expectation and perception and customer’s convenience should give priority.
• IFIC Bank develop electronic banking system to moderate the service because technological advantage of a bank ensuring its competitive edge in the market place which can only be achieved by improved technology, efficient manpower and better service.
• Pragati sarani branch should extend with their all out effort to increase the credit portfolio and to procure more low cash deposit, increase non funded business so as to minimize dependency on interest earning from IFIC Bank general account and to improve overall business performance of the branch to maintain earning.
• IFIC Bank should focus on their promotional activities.
• They should continuously strive and try to introduce new products and services as access cards. ATM with future improved quality service.
• To ensure proper service of proper division should be maintained.
  • All the officers have to give concentration to the customers, while maintaining the customer files.
  • The number of human resource clearing section is really insufficient to give services to huge number of customer.
  • The sitting arrangement is very insufficient with the number of customers. So sitting arrangement should be maintained.                                   Chapter -7

    Conclusion

    The concept of service quality measurement from SERVQUAL is service quality’             =perception (P)-expectations (E)’ if P<E, it means clients are not satisfied. If P=E it means client are satisfied. If P>E, it means clients are delight. The empirical results show that customers strongly accept tangibility and perceived reliability, responsiveness and Assurance. However it is obvious that customer’s perception of all the dimensions is less than this of tangible; Reliability, responsiveness and assurance meet expectation. Customer service is a big factor for a bank to keep the customer happy and satisfied with the services that bank can provide with highest effort. In this report the importance of customer service has been highlighted. It indicates that the customers are the most valuable assets for a bank. Without having a good number of customers and a good relation with the customer a bank can not run well in this era because there is huge competition. To be the number of one bank ,there should be a strategy for a bank, that customers are the source of fund and customer should get all the benefits, which can provide a lot for the customer and as well as can bring a lot for the bank. Bank should be a goal to make the customer always happy and satisfied with the service, only then a bank can run its business safe and soundly in this competitive era.