Internship Report on Current Service Quality of NCC Bank Limited

1.1 Introduction

Financial Institutions have historically have been distinguished by the types of services they provide. In recent years Financial Institutions have diversified their services by creating new subsidiaries that perform additional services or by merging with other types of financial institutions. The result has been the creation of financial conglomerates, composed of various units offering specialized services. Diversification also offers benefits to financial institutions.

National credit and commerce Bank Limited was incorporated in Bangladesh as a banking company. I worked in the account opening desk, clearing and loan department of NCCBL. This gives me the opportunity to know more on different aspects of the company. So, I prepare my internship report on overall banking system of NCCBL.

1.2 OBJECTIVES OF THE INTERNSHIP WORK AND THE REPORT

Every work is done to gain some particular objectives. My Internship program also contains certain important objectives. They are given below

1. To understand the Banking business in Bangladesh. How Banking transactions Take place.

2. To observe the authorities, tasks & responsibilities of the bankers.

3. The rules and regulations of private commercial Banks

3. To know the background of the NCCBL

4. To know the Overall Banking system of NCCBL

5. To understand the Financial and Accounting techniques of NCCBL. In fact this is the prime objective and I have chosen this as the topic of my report.

6. To have the idea about the communication between the Branch office and Head office.
7. To better understand about the foreign exchange activities.

8. To learn the Banking Laws.

9. To appraise the total achievements and success of NCCBL

1.3 Methodology of the study

This report is prepared by two sources:-

1. Primary Sources.
2. Secondary Sources.

Primary Sources: Basically this type of Sources includes:
Face-to-face conversation with the respective officers and staff of the Branch.
Informal conversation with the clients.
Relevant file and documents study as provided by the concerned officers.
Practical work exposures from the different desks of the department of the branch.

Secondary Sources: Secondary data were collected in the following ways:

Data gathered within the organization itself.
Data gathered from Texts
Internet sources.
General reports
Annual reports
Official documents
 Credit manual and foreign exchange manual of the bank.

1.4 Scope of the study

In spite of limitation I also got some facility to complete my internship report. National Credit and Commerce Bank Ltd. (NCCBL) is operating widely with 64 branches all over the Bangladesh. This report is strictly confined NCCBL’s operation in Dhaka. The report is based on the observation and studies during my internship period in Motijheel Main branch. Since my working place was the Motijheel Main branch, which is not the authorized dealer to perform the foreign exchange activity so, I cannot include it in my report. According to the study at first I will focus on the company’s background, management style, present status and specially the products of NCCBL etc. I tried to focus on the Bank’s functional areas such as general banking, accounts, credits & advance and card division of NCCBL. The employees those who held a responsible post in the entire department helped me a lot. They gave me all essential data and conversation with me. This bank has given me the opportunity to observe the banking environment for the first time indeed. I got an opportunity to gather experience by working in the different departments of the branch under the supervision of different departmental heads. National Credit and Commerce Bank Ltd. (NCCBL) is a well-reputed bank in Bangladesh. Within a very short period of time it has been recognized as one of the leading private sector bank.

1.5 Limitations

The first obstacle was that they would not provide any remuneration even for doing internship in NCCBL. It is not an easy task to concentrate hard without any benefit.
As the officers are very busy with their daily work, they could provide very little time.
Limitation of time was one of the most important factors that shortened the present study. Due to time limitation many aspects could not be discusses in the present study.
Confidentiality of data was another important barrier that was faced during the conduct of this study. Every organization has their own secrecy that is not revealed to others. While collecting data on NCCBL, personnel did not disclose enough information for the sake of confidentiality of the organization.
Sufficient books, publications and figures were not available. If these limitations were not been there, the report would have been more useful.
Rush hours and business was another reason that acts as an obstacle while gathering data.
Since there is no strong marketing department in this bank, marketing procedures and promotional strategies are not enriched by information.

However, omitting this, the report will help us understand the whole customer oriented departments of the bank.

CHAPTER TWO

Overview of the Bank

2.1 Banking Sector in Bangladesh

Definition of Bank:
Whoever, being an individual firm, company or corporation generally a deal in the business of money and credit is called a bank. Banker means a person transacting the business of accepting for the purpose of lending or investment of deposit of money from the public repayable on demand or otherwise and withdrawal by cheques, drafts or otherwise. The purpose of banking is to ensure transfer of money from surplus unit to deficit units. Banks in all countries work as the repository of money. The general public deposit money in the bank for safe custody as well as to earn interest on it.

Entrepreneurs try to obtain money from the banks as project loan for long term investment. They also obtain working capital from the bank to run their business smoothly. Banking sector these owe a great deal to the deposit holders on the one hand and the entrepreneurs on the other. They are expected to play the role of friend, philosopher and guide for the deposit holders and as wells entrepreneurs.

Since liberation, Bangladesh passed through fragile phases of development in the Banking sector. Some banks were nationalized in the post liberation period to save the institutions and the interest of the depositors. Those handing the banking sector have borne the burden of putting banks on reliable footings. Despite all that was done, some elements of irregularities appeared. With the assertion of the role of the Central Bank, Bangladesh Bank started adopting measures for putting banking institutions on right track. Yet the performance of public sector management of banks left some negative effects in the money market in particular and the economy in general. The agility among the borrowers manipulates the banking sector as a whole. In effect, a default culture among other effects appeared on the scene.

The opening of private and foreign participants to the banking sector was intended to obtain desirable results from banking. The authorization of private bank was designed to

create competition among the banks and competition in the form of efficiency within and the productivity in enterprises funded by banks. Unfortunately, for the people at large banking sector is yet to obtain the credit for efficiency, curability and growth.

The clever, among the user of banking services, have influenced the management of bands, for obtaining short term and long-term loans. They sometimes showed inflated equity to get money for investment in business and industry. Few diverted their loan money to purposes different from the loan proposal, and invested in non profitable units have failed to repay their loans to the banks. For this reason new entrepreneurs are not getting capital while defaulting entrepreneurs have started obtaining either relief in the form of rescheduling of the repayment program of additional invest able money for diversified units.

Banking in Bangladesh Perspective
Banking is the backbone of national economy; all sorts of economic and financial activities revolve round the axis of the bank. As the industry produces goods and commodities, so does the bank creates and controls money market and promotes formation of capital. From this point of view, banking a technical profession can be termed as industry. Services to its customers are the products of banking industry besides being a pivotal factor in promoting capital formation in the country. As all economic and fiscal activities revolve round this important “Industry’, the role of banking can hardly be over emphasized.

Circumstances being such, it becomes imperative to find out the role of banks now playing in the country and analyze its operational aspects so as to ascertain the importance of this delicate financial sector and its overall impact on our national economy. To ascertain the role of banks and to analyze its operational aspects and its overall impacts on our national economy a thorough study as to its distribution, expansion and contribution is essential to comprehend its past, present and future bearings for the

Growth and development of the banking sector of the country. In the global context, the role of banks is far-reaching and more penetrating in the economic and fiscal discipline, trade, commerce, industry, export and import all carried through the bank. Banks are the only media through which international trade and commerce are being carried out and entire credit transactions, both national and international.

2.2 National Credit and Commerce Bank Ltd.
A Short Profile
HISTORICAL BACKGROUND OF NCCBL
National Credit and Commerce Bank Limited bears a unique history of its own. The organization started its journey in the financial sector of the country as an investment company back in 1985. The aim of the company was to mobilize resources from within and invest them in such way so as to develop country’s Industrial and Trade Sector and playing a catalyst role in the formation of capital market as well. Its membership with the bourse helped the company to a great extent in this regard. The company operated up to 1992 with 16 branches and thereafter with the permission of the Central Bank converted in to a fully fledged scheduled private commercial bank in May, 1993 with paid up capital Tk.39.00 crore to serve the nation from a broader platform.
During last 12 years of its operation NCCBL has acquired commendable reputation by providing sincere personalized service to its customers in a technology based environment.
The Bank has set up a new standard in financing in the Industrial, Trade and Foreign exchange business. Its various deposit and credit products have also attracted the clients both corporate and individuals who feel comfort in doing business with the Bank.
The initial authorized capital of the Bank was Tk.75.00 crore and paid up capital Tk.19.50 crore at the time of conversion which is now raised to Tk.39.00 crore. The present authorized capital is Tk.250.00 crore and paid up capital is Tk.60.78 crore. The sponsors of the new bank consisted of 26 Members who comprised the first Board of Directors. The share price of the bank is currently being quoted at both Dhaka and Chittagong bourses at an average price of Tk.320.00 against per value of Tk.100.00.
NCC Bank based upon its commendable business performance for the year ended 2004, has meanwhile declare stock dividend at the rate of 30%. The Bank which started with 16 branches in 1993 has at present 36 (thirty six) branches and 03 (three) booths located in prime commercial areas of Dhaka, Chittagong, Sylhet, Feni, Khulna, Jessore and Rangpur district head quarters out of which as many as 17 (seventeen) are authorize d dealer branch3es,fully equipped for dealing in direct foreign exchange businesses.

NCC bank is now positioned to best suit the financial needs of its customers and make them partners of progress.

2.3 Types of business
NCCBL was licensed as a scheduled bank. It is engaged in pure commercial banking and providing services to all types of customers ranging from small and medium enterprises to large business organizations. It is working for the economic welfare by transferring funds from the surplus economic unit to those who are in deficit.

2.4 Vision
The purpose of the bank is to become ‘the bank of choice’ in the communities they serve. The bank accomplishes this by offering to their customers the financial services which is expected by their customers while providing a return to their owners. In accomplishing this mission, the bank has now been free from all the natures of a problem bank through fulfilling all the conditions set by the central bank. They proudly say: “NCCBL is profit making and problem free.”

2.5 Mission
NCCBL shall be at the forefront of national economic development by:

Anticipating business solutions required by all NCCBL’s customers everywhere and innovatively supplying them beyond expectation.
Setting industry benchmarks of world class standard in delivering customer value through our comprehensive product range, customer service and all our activities.
Building and exciting team based working environment that will attract, develop and retain employees of exceptional ability who help celebrate the success of bank’s business of bank’s customers and of national development.
Maintaining the highest ethical standards and a community responsibility worthy of a leading corporate citizen.
Continuously improving productivity and profitability and thereby enhancing shareholder value.

2.6 NCCBL- At present
Like clothes, shops, candy shops, bakeshops, food shops, NCCBL is not a “debt shop” the term being used by many to call the present say banks. It is now been called a modern bank that undertakes all its operations at an international standard.
It started operations as a commercial bank in 1993 recovering from some primary difficulties. NCCBL has now emerged as a major player in the financial sector. The bank has been able to attain a commendable CAMEL rating and it performance has been outstanding in terms of profitability for the year ended 2000. Listed in both the Dhaka and Chittagong bourses since late 1999 with an IPO that raised the paid-up capital of the bank to Tk.39 crore, the current price levels of its shares and turnover in trading is evidence of its high rating among investors.

Banks are the pillars of the financial system. Specially, in Bangladesh, the health of the banking system is very vital because the capital market is little developed here. As the banks are still the major sources of credit and exercise great influence on the financial
System, it is extremely important that the country’s banking system should be in good health in the interest of investment activities, meeting the needs of all kinds of finance and related matters. Over the years, NCCBL has built itself as one of the pillars of Bangladesh’s financial sector and is playing a pivotal role in extending the role of the private sector of the economy.
Under the dynamic guidance of its Board of Directors headed by Chairman Mr. Nurul Islam, the current management has been arching ahead with new zeal to reach its goal in 2001. The bank is pledge bound to perform even better in the coming years, opining new branches adding new and better products and services to its customers at their doorsteps.
The bank has a strong branch network nationwide with 44 branches and 1 booth to effectively address the needs of its cross segment customer base.

2.7 Objectives of the Bank

Achieve value and respect of the customers and maintain harmonious banker- customer relationship.
Strive for good profit and sound growth
Contribute towards the formation of national capital.
Achieve and sustain in the domestic leading market position in both customer and corporate banking sector.
To become the most efficient bank in terms of technology application.

2.8 Vision of the Bank
To build a sustainable
Respectable financial institution
To be a leading Commercial Bank
With a social focus, assisting in the economic development of the country.

2.9 Mission of the Bank

To mobilize resources from within to the development and growth of the country.

To play a catalyst role in the formation of capital market.

Anticipating business solutions required by all our customers everywhere and innovatively supplying them beyond expectation.

Setting industry benchmarks of world class standard in delivering customer value through our comprehensive product range, customer service and all our activities.

Maintaining the highest ethical standards and a community responsibility worthy of a leading corporate citizen.

Continuously improving productivity and profitability and thereby enhancing value.

To assists high quality service to customer and to participate in the growth and expansion of our national economy.

To set high standard of integrity and bring total satisfaction to our clients, share holder and employees.

2.10 Management Hierarchy

2.11 Branches

2.12 Nature of Business
NCCBL is a progressive commercial bank in private sector in Bangladesh. It creates now opportunities for its clients. It gives customized services and maintains harmonious banker – client relationship. It contributes towards formation of national capital, growth of savings and investment in trade, commerce and industrial sectors. It provides different types of commercial banking services to the customers of all strata in the society within the stipulation laid down in the bank companies Act. 1999, rules and regulations framed by the Bangladesh Bank from time to time.

Share

On 30th December 1999 NCCBL’s ordinary share was 19, 50,000 of Tk. 100 each.

2.13 Underwriters of Share:
The Following banks and financial institutions over served as an underwriters:

 AB Bank Limited
Prime Bank Limited
 Dhaka Bank Limited
Bay Leasing And Investment Limited
Uttara Finance & Investment Limited
National Life Insurance Co. Limited
Bangladesh Industrial Finance Co. Limited.
National Securities & Consultants Limited
Swedish Investment Mgt. Limited
Raspit Securities Mgt. Limited

2.14 Office Automation
Technology, computer, internet these thins brings a new generation of banking service to the customer. Eight to ten years ago customers cannot think about that they can withdraw or deposit money from their account at least within one hour. But now it takes only at best five minutes for withdraw their money. This is the simple example what technology brings to banking sector. In before bankers has to maintain huge ledger book for their daily or any sorts of banking record. But now they can do it by on click and by strike of few buttons. Online banking is now getting more and more necessary part banking sector. NCCBL has also realized the current fact and they also try to serve online banking service to their valued customer. Though they do not launch online banking service extensively but within this year and next year they are trying to introduce online banking service at least primarily for the branches of Dhaka and some other key areas. Now they have only three branches under online banking service. Mirpur branch, Dhanmondi branch, Uttara branch and Elephant Road branch are now serving online banking service. These three branches have Wide area Network (WAN) among themselves. So customers

can get online banking service only from these three branches. NCCBL has own software. They had Software named ADNAN-2004, but now they are working with MICROBANKER which they purchase from India. They have web page (www.nccbank-bd.org). Customer can get detail information from the web page. NCCBL also has credit card and ATM machine.

2.15 Target Customers
Due to the predecessor company’s involvement investment financing sector of the country the bank inherited it stop corporate customer. Moreover the bank is involved in import trade financing. Bulk importers of consumer durable food grains industrial raw materials are its customers. The bank has financed in textile and apparels sectors. The bank has a trend of choosing customers from diversified groups. The bank has first class customers in the construction sectors involved in high rise building, heavy construction and roads and high way construction.

2.16 Current position of NCC Bank

AUTHORIZED, PAID UP, RESERVE FUND AND OTHER RESERVE

The authorized capital of the Bank stood at Tk. 2500.00 million in 2008 while with the issuance of Rights Share, paid-up capital increased a d stood at Tk. 975.04 million in 2008.

The reserve fund has also increased to Tk. 562.74 million during the year recording an increase of 32.34% over the previous year’s figure of Tk. 425.22 million.

DEPOSIT

Bank’s deposit as at 31st December 2008 stood at Tk. 21,478.22 million with an increase of 33.66% over last year’s figure of Tk. 16,069.23 million. The chart below shows the growth of deposit for last 05 years.

CREDIT

Bank’s credit policy has been reviewed and revised during the year 2005 to make the same need oriented and also to comply with Bangladesh Bank directives conveyed through guidelines for Core Risks Management and Prudential Guidelines for Consumer Finance. As a result, Bank’s credit activities could be made more organized. With the support of various non conventional products like Small Loan Scheme, Housing Loan Scheme, Festival Loan, etc. Bank’s lending base could be expanded further which contributed to the profitability during the year. Banks SME lending and credit facilities extended to maize producers of country’s northern area’s farmers also received good response and acclamation in the financial sector.

During the year total advance of the Bank stood at Tk. 20,533.13 million with an increase of 34.98% over the last year’s figure of Tk. 15,211.15 million and Advance Deposits ratio being 0.96: 1 in 2008.

INVESTMENT

Banks investment in Government approved Securities, Treasury Bills etc. during the year stood at Tk 3,010.45 million as against Tk. 4,385.23 million of the previous year.

FOREIGN EXCHANGE BUSINESS

The Bank put due care to its Foreign Exchange Business which is one of the major sources of income and contributes notably towards its profitability. Under the purview of Bank’s Credit Policy and Government Policy, the Bank tries to cater the needs of Exporters and Importers of the country. With the expertise of the concerned officers at the Head office and Branches, Bankers business in this sector recorded notable development during 2008.

The amount of export and import business handled by the Bank in 2008 was Tk 7,776.30 million & Tk16, 296.30 million respectively as against Tk 5,771.65 million & Tk. 13,274.08 million in 2007.

CREDIT ADMINSTRATION
Credit Administration Department has been strengthened further by assigning competent and expert officers to monitor/supervise both pre and post sanction activities. To make the Department an independent, one In charge has also been assigned. The department is now engaged in ensuring proper documentation of Loans/Advances and timely recovery of the same. Recovery Department is also laying its expected role in realizing Bank’s dues from defaulting borrowers.

CHAPTER THREE

Strategic Business Units of Head Office

3.1 Introduction
The Head Office is located at 7-8, C/A. Motijheel, Dhaka. It monitors and controls the banking operations of the branches scattered in different strategic business locations in Bangladesh. At present, there are 8 divisions in the Head Office. The classifications of the different division are mentioned as follows:

3.2 Credit Division
The Credit Division is one of the most essential and valuable divisions of every commercial banks. The Credit Division of the bank deals with issues regarding corporate finance, general credit, special schemes such as House Building Loan (HBL) and Consumer Credit Scheme (CGS) etc.

3.3 Audit Inspection Recovery Distribution
Although the loan Administration Division is not at per with the Credit Division of the bank in terms of human resource, the performance of the bank relies heavily on this division. It is responsible for credit monitoring, documentation, distribution L.D.O’s (Loans, Discounts and Overdrafts), preparing MSOCF (Monthly statement of outstanding credit facilities) and dealing with TR (Trust Receipt) etc.

3.4 Central Account Division
This division monitors several important functions of banking operations performed in different branches across the country. It deals with accounts, financial planning, budget and monitoring, preparation of returns and statement, reconciliation, maintenance of PF (Provident Fund), gratuity and superannuation fund, local treasury etc.

3.5 Human Resource Division
The necessary of having an efficient Human Resource Division is one of the unique requirements for the success of any business organization. National Credit and Commerce Bank Limited unlike other commercial banks has a proficient Human Resource Division that deals with recruitment and manpower planning, performance evaluation, disciplinary actions, promotion, cadre charge, employee service rules and benefits, training and development. An Executive Vice President leads this division with the assistance of a Vice President.

3.6 Establishment Division
Logistic and General Services Division is considered as the centre for providing necessary supporting services to other department as will as the employee. The function of this division includes providing utility services, maintenance of premises, and purchase of printing and general stationery, dispatch and transport pool. A Senior Vice President monitors this division.

3.7 International Division
The role of the International Division is very vital to providing various banking service to the clients. This division also maintains the mutual relationship with many corresponding banks on several issues such as agency and credit line arrangement, reconciliation, authorized signature control, TKC (Test key control), issuance of power of attorney, fund management and treasury operations (foreign) etc.

3.8 Information Technology Division

It is very significant to adapt with the ongoing information technology revolution to provide faster services to the clients. The Information Technology Division supervises the overall computerization of the banking operations and networking, provides system support, deals with data processing and data entry, procures and maintain hardware,

maintain and develop software required by the bank to facilitate and support the day to day operations.

3.9 Card Division
The core functions of the Card Division include dealing with issues regarding debit card, ATM card, and customer and vendors management. A first Vice President heads this division.

3.10 Marketing and Branch Division
This division is expected to deal with issues regarding marketing of asset and liability products, branch expansion etc. this division involves introducing new financial products. It also deals with renovation of new branches and location of new branches.

3.11 Training Division
The main objective of this division is to make the employees efficient. Usually this division offers training to their employee time to time. This is helpful to the employee to do their job efficiently and effectively.

3.12 Treasury Division
The key responsibility of this division is to utilize its fund to various profitable businesses. Usually financial organization has huge capital and they invest these capitals in various business.

3.13 Public Relation Division
The main objective of the public relation department is to make a bridge within the organization and outsiders. This division directly deals with general public.

3.14 Board Division
This division deals with board of directors of the organization. Usually when the board meeting held where it will held and other activities are done by this department.

CHAPTER FOUR

Types of Account
&
Account Opening

4.1 Information of General Banking
Deposits are the foundation upon which banks thrive and grow. They are unique items on a bank’s balance sheet that distinguishes it from other types of business firms. The ability of a Bank’s management and staff to attract checking and savings accounts from businesses and customers is an important measure of the bank’s acceptance by the public. Deposit provides most of the raw material for bank loans and thus represents the ultimate source of bank profits and growth. Deposits generate cash reserves, and it is out of the excess cash reserves a bank holds that new loans are created.

4.2 NCCBL Products & Services:
Time Deposit Scheme
Monthly Savings Scheme
Deposit Insurance Scheme
Inward & Outward Remittances
Traveler’s Cheques
Import Finance
Export Finance
One stop Service
Working Capital Finance
Loan Syndication
Underwriting and Bridge Financing
Trade Finance
Industrial Finance
Foreign Currency Deposit A/C
NFCD (Non Resident Foreign Currency Deposit Account)
Consumer Credit.

4.3 Functions of General Banking Department:
1. Account opening.
2. Account closing.
3. Cheque book issuing.
4. Telephone receiving
5. Account enquiry.
6. Providing accounts statement
7. Solvency certificate issuing
8. Account transfer.

4.4 Types of Deposits offered by the Bank:

Today, Bank offers different types of Deposits. The number and range of deposit services offered by banks is impressive. They are:

Current deposit account
Saving deposit account
Term deposit
Fixed deposit
Special Saving scheme

CURRENT DEPOSIT ACCOUNT

NCCBL opens current accounts for its clients to facilitate their day-to-day operations. The amount deposited in the current account can be withdrawn at any time. No interest is given on the current account. In certain cases, however, interest is available at an agreed rate where withdrawals are subject to a written notice for a specified period. The minimum balance requirement for this account is Tk.1000 and Tk.250 is deducted from the account in case of closing the current account.

.Different types of current deposits are as follows:
1. Individual current account
2. Joint account
3. Proprietorship account
4. Partnership account
5. Limited company account.

Scenarios of current deposit account of NCCBL:
Last five (5) years current deposit of NCCBL as below-

SAVING DEPOSIT ACCOUNT

To encourage saving habit amongst the general public, banks allow depositors to open savings accounts. As the name indicates, these accounts are opened for the purpose of savings. Interest is awarded on the balance of the account. For opening a savings account minimum Tk. 500 is taken as deposit. NCCBL offers attractive rate of profits of its saving deposits. This rate is 6.00% per annum.
Scenarios of Savings Deposit account of NCCBL:

FIXED DEPOSIT RECEIPT

Fixed deposit accounts are repayable after the expiry of the predetermined period fixed by the customer. The period of the FDR ranges from three months to one year. Longer the period, the rate of’ interest is higher. Amount of FDR is payable once a time. If the client does not withdraw the amount and give’ further instructions for renewal within one month from the date of maturity, then the FDR account would get renewed for a further three months and the rate of interest would L prevailing rote for fixed deposit.

Scenarios of NCCBL Fixed deposit:

SHORT TERM DEPOSIT (STD)
According to characteristics, short term deposit is similar to current deposit except interest. Though it is CD account but bearing some interest. Currently this interest rate is 4.50%.
Rules and Regulation for opening Short Term Deposit (STD) Account:
STD account rules and regulation are just like current deposit account except following rules:

STD Account holder enjoys interest by following cases:
Account Holder Type Amount (Daily) Interest Rate

Rate of Interest on Deposit offered by the Bank

Types of Deposit Rate of Interest (0/0 per annum)

4.6 NCCBL’s Own Deposit Schemes/Products:

NCCBL is now offering various depository products for mobilizing the savings of the general people. To get the deposit from the little saver portion of the country, NCCBL has started few Scheme which by this time gained high popularity among the depositors. To ensuring risk free and profitable investment of limited income of majority of people & thereby provide maximum benefits, NCCBL has lunched following savings schemes:
Special Savings Scheme
Special Fixed Deposit Scheme

a) Special Savings Scheme
Two types of Account can be opened under this scheme. One for term of 5 years and another for a term of 10 years. Rules for both the accounts shall be the same.
Monthly installments of deposit will be Tk.500 and its multiple up too Tk.10,000 only as mentioned below to be deposited every month during the entire period of the scheme as fixed at the time of opening of the account. Account may be opened for any installment later on the same is changeable.
The depositor(s) will be paid a fixed amount after expiry of the term as follows:

Introduction may be waived but photograph will be required to open the A/C. Account in the name minor can also be opened.
A person is allowed to open more than one account for different installment in a branch/bank.
No withdrawal shall usually be allowed before 5 years. If any Account is needed to be closed before 5 years, interest at prevailing rate on saving A/C shall be paid along with the principal.
No interest on the deposited amount shall be paid if the AC is closed before 6 months, in case of premature closure of any account Tk.100 to be realized as account closing charge.
In case of withdrawal of money by closing the A/C after 5 years (for 10 years term) full amount applicable for 5 years term and interest at prevailing rate on saving A/C for the rest period along with principal shall be paid.
Monthly installment will have to be deposited by 10th day of each month (In case of holidays, deposit can be made on next working day). Advance installments are always acceptable.

In case of lapses in depositing installment, the deposit slip of that particular installment to be used with month-wise up to date late fees @2% per month per installment (on due installment) mentioning in the respective column of deposit slip along with due installment to be deposited.
If an account holder fails to deposit 3 consecutive before the expiry of 5 years time the A/C shall be treated out of this scheme and interest at prevailing rate on savings A/C shall be paid.
Deposit book to be issued for the mentioned installment size and period at the time of account opening.
In case of missing of deposit book a sum of Tk.100 to be realized while issuing duplicate book but in that case, pages of installment so far paid earlier to be removed/cancelled from the duplicate book.
No pass book to be issued in favor of the account holder.
Under the scheme, an account holder can instruct the bank to make payment of installment to the debit of his/her separate A/C with the branch.
Depositors may nominate on or more persons against the account as “Nominee”. In case of death of A/C holder, transaction in the A/C will be suspended and payment will be made to the nominee(s). If there is no nominee, payment will be made to the legal heirs of the deceased (depositor’s) against succession certificate.
 If any Excise Duty/Income tax etc. is levied by the Government on Deposit/interest earned, the same will be paid by debiting account.
 On completion of any term (5/10 Years) payment shall be made one month from the date of deposit of last installment.
 Maximum up to 80% loan on deposit may allow to the A/C holder at ruling lending rate of the bank.

b) Special Fixed Deposit Scheme:

Minimum Tk.50, 000 or multiple amount is acceptable under this scheme.
The duration of the Scheme shall be 5 years after which depositors can take back the principal amount, if not renewed.
The duration of time between deposit and payment of first profit have to be minimum on month.
Monthly interest will be given to the depositors against the deposited amount according to the following schedule.

No profit/interest shall be due for payment if the Deposit is enchased before one year and if any dividend is paid that will be adjusted by debit to principal.
No withdrawals of principal shall usually be allowed before 5 years, if any account is needed to be closed before 5 years but after one year interest at prevailing rate on Savings A/C shall be paid. But if the profit is more than the amount receivable at prevailing rate on Savings A/C, then it shall be adjusted by debit to principal.
Under the scheme, an account holder can instruct the bank to make deposit of monthly profit to his/her separate A/C with the branch.
Depositors may nominate one or more persons against the account as “Nominee”. In case of death of A/C holder, transaction in the A/C will be suspended and payment will be made to the nominee(s). If there is no nominee, payment will be made to the legal heirs of the deceased (depositor’s) against succession certificate.
Proper receipt/instrument for the deposit is to be provided to customer which is not transferable.
Maximum 80% loan may be allowed against lien of the receipt/instrument at ruling rate of the bank. In that case, monthly dividend will be deposited/transferred to the loan account only.
If any Excise duty/Income tax etc. is levied by the Government on deposit/interest earned, the same have to be borne by the depositor.

4.7 Necessary papers/documents for opening of an account:
Individual/Joint Account:

For any individual/joint account the following papers/documents are required:
a) Two copies of photograph of the accounts holder(s) who will operate A/C.
b) Introducer attested by current/savings account holder.
c) Service paper photocopy or nationality certificate by commissioner or photocopy of passport.
If the account is a joint account, then the joint account holder submit a declaration and operational instruction of the account along with their signature. The declaration is
“Any balance to the credit of the account is and shall be owned by us as joint depositor. Any liability whatsoever incurred in respect of this account shall be joint and several.”

Proprietorship Firm:
The following documents have to be submitted for preparing an account of a proprietorship firm:
a) Name of the firm.
b) Name of Proprietor
c) Copy of Trade license
d) Seal of Proprietorship Firm
e)
The following documents have to be submitted for preparing an account of a proprietorship firm:
a) Partnership deed.
i. If the partnership firm is a registered one then one copy of registration forms.
ii. If not then a copy of certificate from the notary public.
b) Certified copy of valid trade license.
c) Trade seal.
d) Partnership account agreement (Draft enclosed)

Limited Company:
For the opening of an account of a limited company, following documents have to be submitted:
a) A copy of resolution of the company that the company decided to open an account in the NCCBL.
b) Certified true copy of the Memorandum & Articles of Association of the Company.
c) Certificate o Incorporation of the company for inspection and return along with a duly certified photocopy for bank’s records.
d) Certificate from the Register of Joint Stock Companies that the company is entitled to commence business (in case of Public Ltd. Co. for inspection and return) along with a duly certified photocopy for bank’s records.
e) Latest copy of balance sheet.

f) Extract of resolution of the board/general meeting of the company for opening the account and authorization for its operation duly certified by the Chairman/Managing director of the company.
g) List of Directors with address (a latest certified copy of Form-XII).

Club/Society:
Following documents have to be obtained in case of the account of the club or society:
a) Up to date list of office bearer.
b) Certified copy of Resolution for opening and operation of account.
c) Certified copy of Byelaw and Regulations/Constitution.
d) Copy of Government Approval (if registered).

Cooperative Society:
Following documents have to be obtained in case of the account of Cooperative Society:
a) Copy of Byelaw duly certified by the Cooperative Officer.
b) Up to date list of office bearers.
c) Resolution of the Executive Committee as regard of the account.
d) Certified copy of Certificate of Registration issued by the registrar, Cooperative societies.

Trustee Board:
Following documents have to be obtained in case of the account of trustee board:
a) Prior approval of the Head Office of PBL.
b) Certified copy of Deed of Trust, up to date list of members of the Trustee.
c) Board and certified copy of the Resolution of trustee Board to open and operate the account.

Minor’s Account:
Following documents have to be obtained in case of the account of minor:
a) Putting the word “MINOR” after the title of the account.
b) Recording of the special instruction of operation of the account.

c) The AOF is to be filled in and signed by either the parents or the legal guardian appointed by the court of law and not by the minor.

4.8 The Cash Counter Section
We know that a bank is the Dealer of Money; it receives money and pay money. Where cash counter should be the heart of any commercial bank’s branch office as it receives and pay cash every moment at its working time. Cash counter also does a very important work by managing the bank’s flow of Fund. All the money of any bank business enters & exits through the cash counter. This section is the major part of bank that works as the customer service oriented section. The efficiency of this section of a bank crates the good image of that bank to the all type of customers. If t he officials can serves at once the customer than it proves the strong human resources of that bank and increases customer satisfactions, which improve the overall position of that bank in the market. It must be mentioned that NCCBL has a very strong group of employees, especially in the Mirpur Branch, whom all the time serves the customers satisfactorily. Generally followings are some tasks done by the cash counter of Prime Bank:

Cash receive
Cash Payment
Receiving Current Bill, T&T & AKTEL Bill
Working as Agent at the time of issuing IPO of different companies.
Fund Management by maintaining sufficient amount of cash each day. Because if the amount of cash receives of any day is more than that of estimated, the bank has to pay more to the Insurance Company as premium of that excess amount. On the other hand if for any reason the amount of cash is less than the estimated amount, the bank can’t satisfy the customers’ demand.
Payment of ATM cards.
Payment of Money Gram.
Payment of Express Money.

4.9 The Account Department
This is the most confidential department of a bank. Recording all kinds of transactions of the branch, confirming their accuracy and preparing statements are the main job of this department. Now days under computerized banking system, the jobs of accounts department become very easy. Now the computer directly prepares the clean cash statement on party ledger vouchers. The function of the accounts department can be divided into two parts:
a) Daily function
b) Periodical functions

Daily Functions
The routine daily tasks of the accounts departments are as follows:
Record the daily transactions in the cash book.
Record the daily transactions in general and subsidiary ledger.
Prepare the daily position of the branch comprising of deposit and cash.
Prepare the daily statement of affairs showing all the assets and liability of the branch as per ledger and subsidiary ledger separately.
Pay all expenditure on behalf of the branch.
Make salary statement and pay salary.
Checking whether all the vouchers are correctly passed to ensure the conformity with the ‘Activity Report’; if otherwise making it correct by calling the respective official to rectify the voucher.
Records inter branch fund transfer and providing accounting treatment in this regard.

Periodical tasks
The routine periodicals tasked performed by the department are as follows:
Prepare the monthly salary statements for the employees.
Publish the basic data of the branch.
Prepare the weekly position for the branch, which is sent to the Head Office to maintain Cash Reserve Requirement.
Prepare the monthly position for the branch, which is sent to the Head Office to maintain liquidity requirement.
Prepare the weekly position for the branch comprising of the break up of sector-wise deposit, credit etc.
Prepare the weekly position for the branch comprising of the denomination wise statement of cash in tills.

4.10 Clearing Section

Clearing stands for mutual settlement of claims made in among member banks at an agreed time and place in respect of instruments drawn of each other. Clearing House is an arrangement under which member banks agree to meet, through their representatives, at the appointed time and place to deliver instruments drawn on the other and in exchange to receive instruments drawn from them. The nit amount payable or receivable as the case may be, is settled through an account kept with the controlling bank (Bangladesh Bank / Sonali Bank). In Clearing Section cheque, dividend warrants and other forms of financial instruments, which are easy for encashment, are received. The clearing department sends these instruments to the Clearing House of the Bangladesh Bank for collection. As soon as cash is received the amount is deposited in the client’s account. Collection of cheques, drafts etc. on behalf of its customers in one behalf of its customers in one of basic function of a commercial bank. Clearing stands for mutual settlement of claims made in between member banks at an agreed time and place in respect of instruments drawn on

each other. Negotiable instrument Law provides protection to a banker who collects s cheque or a draft if the banker fulfils the following conditions:
He collects the instrument for customer
The instrument be crossed
The banker acts in god faith and without negligence.

4.11 TYPES OF CLEARING:

Types of Clearing
• Outward Clearing: Outward clearing means when a particular branch receive instruments drawn on the other bank within the clearing zone and those instruments for collection through the clearing arrangement is considered as outward clearing for that particular branch.
• Inward Clearing: The bank provides the instruments to other banks through Clearing House which have been collected from different clients. It performs this kind of service for its clients without requiring any charge or the remittance.

OBC (Outward Bill for Collection)
If a party gives a check to a branch of NCCBL to collect money form a branch of another bank which is not situated in the clearing house then the NCCBL collect money through OBC. In case of OBC two ways exist to collect money from another bank.

In the first way, the receiving branch of NCCBL send the check with forwarding letter to the branch of another bank which name are included in the check. After receiving the check that branch of the bank send a D.D. to another branch of their bank which are situated in the same clearing house of payee’s branch of NCCBL. After that they issue pay order to the name of payee’s branch name and send the check to the clearing house and NCCBL collect this check through clearing h9use and credit the payee’s account.

In the second way, NCCBL payee’s branch sent the check to another branch of NCCBL which are situated in the same area of another bank’s branch (which
name are included in the check). Then the receiving branch of NCCBL collect the amount of check through outward clearing by clearing house of those areas and issue a credit advise to the payee’s branch. After that, payee’s branch credits the payee’s account.

4.12 Local Remittance Departments
Remittance is significant part of the general banking. The bank receives and transfers various types of bills through the remittance within the country. Obviously the bank charges commission on the basis of bills amount. NCCBL remittances are safe, swift, inexpensive and simple.

Types of Remittance
a) PO (Pay Order)
b) DD (Demand Draft)
c) TT (Telegraphic Transfer)
d) MT (Mail Transfer)
e) SP (Shanchaypotra)

a) Pay Order
Pay order is an instrument that contains an order for payment to the payee only in case of local payment whether on behalf of the bank or its constitution. Unlike checks, there is no possibility of dishonoring pay order. NCCBL charges different amount of commission on the basis of pay order amount.

b) Demand Draft
By DD any person can send money from one branch to another branch of NCC bank. To send the money he/she must fill up the NCCBL’s prescribed form of DD and paid charge
Commission and receive DD block. The following information is included in the DD Block:
Name of the sender branch
Name and account of the party who receive the money
For security purpose a confidential test number are included in the DD Block.
Amount of money to be transferred.
Name of receiver Branch.
The sender sends this block to the Receiver branch of DD. When this DD block receive by the receiver branch. The authorized officer of the receiver branch tests the DD confidential number and if the test is proved then he/she give the money to the payee.

c) Telegraphic Transfer
To send money urgently NCCBL may be requested for TT on payment of a nominal charge and telegram charges.
Any person urgently sends money from one branch to another branch within NCCBL through TT.
When a message of TT send through phone from one branch to another branch in that time the message received by the authorized officer who has a right of power of Attorney. After that, he/she fill up the TT form. Following things are included in the TT form:
• TT Number
• TT Test Number
• Name and Account number of the payee
• Power of attorney number of the sender and receiver of TT.
• The amount to be transferred.

After fill up of TT form he tests the Test number of TT. If he/she ensured through testing the test number then he credit the account of the payee. On the other hand, if the Test number is not proved then he/she callback to the sending branch of TT and request to send a new TT.

d) Mail Transfer
Money can be sent through mail transfers to anybody who has an account in any other branch of the same bank for this purpose the sender shall have to furnish details like:
The name of the beneficiary and his/her account number
The amount to be transferred
The name of the branch where the account is maintained.

4.9.2 Attractive Charges on remittances
Issuance of Pay Order

Issuance of DD/TT/MT:
 Commission ………………………………@ Tk.0.10%
 Telephone/Telex charge…………………..@ Tk.30/-

4.13 Foreign Remittance:

These remittance services are provided for exchanging foreign currency. Those services are as follows:

Foreign Remittance

1. Foreign Demand Draft
2. Traveler’s Cheque
3. Money Gram
4. Habib Quarter
5. Dhaka Janata

Foreign Demand Draft:

NCCBL accepts the charges for TOFEL, SAT, GMAT etc through FDD. For that client has to open a student file to issue FDD maintaining the rule of BB. Before issuance of FDD, bank will ask the client to fill up the TM form, which contains the following particulars:

* Name of the student
* Address of the student
* Amount of FDD in foreign currency
* Purpose of remittance
* Address of the institution to which the FDD will be favored
* Country receiving payment
* Passport no of the student with date of issue

Traveler’s Check:

Traveler’s cheques are issued by banks to avoid the risk of loss or inconvenience in having to carry large amount of cash while traveling. The salient features of T.C. are:
The buyers of T.C. need not to be a client of NCCBL.
The buyer has to deposit money with the branch of NCCBL equivalent to the amount of the T.C. he wants to buy.
Each T.C. is signed by the buyer at place marked “when countersigned below with this signature”, before the NCCBL officer
T.C. is issued in single name. It is not issued in joint names or name of clubs, societies or companies.
There is no expiry period for the T.C.

Remittance of NCC Bank Limited for last five years (2004-2008) is-

Money Gram:

It is the new concept of transferring foreign remittance to Bangladesh. One person residing in the abroad can remit his money through the process of money gram. There are more that 22,000 money gram agents in over 100 countries are linked worldwide. Only NCCBL is authorized to do this kind of business. This kind of business is permitted by BB because of foreign remittance is coming to our country. For such transaction client doesn’t have to maintain any account in NCCBL. They will only take Tk. 0.07/$ as a commission.

There are some features of Money Gram:
 Faster: When a person transfers money through money gram service his money gets there fast, usually in 10 minutes or less. Other services often take day or even weeks.
Convenient: There are more than 22,000 money gram agents over 100 countries. Therefore, a person can easily transfer his fund.
Secured: People use the money gram service thousands of time a day all over the world. It is a trusted guaranteed and reliable thoroughly personal way to transfer money.
Easy: Just one simple form and computerized money transfer network will speed a person’s funds to destination throughout the world quickly.

Money Gram processing:

Sender will go to money gram agent to transfer his/her money to any country (suppose Bangladesh)
Sender gets receipt and notifies recipients of the transaction reference number.
Recipients go to the money gram agent (NCCBL) in Bangladesh, fill the “Receive form” to request funds and shows proper identification.
Receiving agents contract the money gram transaction center (Head office on NCCBL) to obtain authorization to pay recipient.
Eventually receiver will get the money

SWIFT (Society for Worldwide Inter Bank Financial Telecommunication)
NCC Bank ia a member of the society of interbank financial telecommunication. Through this fast, secure, global communication NCC bank has gained 24 hours connectivity with 7000 financial institution in 200 countries for transmission of LCs, Guarantees, funs transfers, payment etc. SWIFT is a bank owned nonprofit cooperative based in Belgium servicing the financial community worldwide. It ensures secure messaging having a global reach of 6,495 Banks and Financial Institutions in 178 countries, 24 hours a day. SWIFT global network carries an average 4 million message daily and estimated average value of payment messages is USD 2 trillion.
SWIFT is a highly secured messaging network enables banks to send and receive Fund Transfer, L/C related and other free format messages to and from any banks active in the network.
Having SWIFT facility, bank will be able to serve its customers more profitable by providing L/C, payment and other messages efficiently and with utmost security. Especially it will be of great help for our clients dealing with Imports, exports and Remittances etc.

CHAPTE FIVE

The Internship Position and Responsibilities

5.1The Internship Position and Responsibilities

I have worked mainly of the General banking Section. Sometimes I have worked in the foreign exchange, money gram, Loan and advances department and cash counter. Mainly general banking section I worked account opening, deals with the clients about to open a new account, Forms of Deposit. Actually in our country the bank deposits take three different forms.

• Current or Demand Deposit.
• Saving Deposit
• Fixed Deposit

Fill up the Form
The person desiring to open a current account with the bank has to make application in the prescribed form. This form must be properly filled up and signed by the applicants.

My suggestion
Sometimes I suggested to the customers how to operations of the account, according to the NCCBL rules to opening and operating the account. After the above formalities are over, the banker opens an account in the name of applicant. Generally the minimum amount to be deposited initially is taka one thousand for opening a saving account and taka five thousand for current account.

Deposit Book
With a view to facilitate the receipt of credit items paid in by a customer, the bank will provide him /her pay-in- slip either loose or in book forms. The customer has to fill up the pay in slip at the time of depositing the money with the bank. The cashier with his/her initials and stamps will return the counterfoil to the customer on the receipt of the money.

Chequebook
To facilitate withdrawals and payments to third parties by the customer, the bank will also provide a chequebook to the customer. But it is noted that to get a chequebook, the customer has to dully fill up the cheque requisition slip to the banker.

Some days I was worked in Loan and advanced department. Mainly loan and advanced department worked deals with client about the loan conditions of the NCCBL.

5.2 A bank officer’s contribution to improve the customer service
In this modern era of banking the bank officers needs to be more efficient and should work effectively in order providing quality service to the customer. But on the other hand it is a matter of fact that bank officers often busy with so many things that sometimes they fail to satisfy the customer. I have worked in different division and department of NCCBL. As a marketing major student I can make some possible solution on how should a bank officer make contribution to improve the quality or satisfying the customer service.

What is Customer Service?
Customer service is meeting the needs and expectations of the customer as defined by the customer.
‘Meeting the needs and expectations of the customer’ means bankers know what their customers want, what they expect, and bank is providing that to them on a consistent basis. And to know what the customers want, bank officers have to ask them!

‘As defined by the customer ’ is the key phrase because it says if the customer does not perceive bankers as offering good customer service, then they are not. The customer is the judge here; no matter how good the internal records claim officers are, the customer is the only voice worth listening to. So in order to have an effective customer service
initiative, bankers must know what their customers want, provide it to them on a consistent basis, and ask them how bank officers are doing.

5.3 BENEFITS OF AN EFFECTIVE CUSTOMER SERVICE INITIATIVE
Bank officers and their organization can benefit from customer service in the following ways:
 Minimize stress: If bank officers are dealing with customers directly, especially unhappy ones there will be a certain amount of stress with each episode. It can be reduced if they have a systematic way for dealing with the customers.
 Higher efficiencies: when bankers focus their efforts on the areas that directly affect customer satisfaction, they can utilize their resources more efficiently. An effective customer service programs provides a plan for working on those areas most important to the customers and reduces the deviation which may distract them and the organization from focusing on these areas.
 Increased morale and satisfaction: when bankers are working on those areas that mean the most to the customers and to the success of the organization, then they might share a common vision and meaning with the entire organization.
 Survival: effective customer service becomes the cause of the bankers staying in business. With growing competition, there are plenty of suppliers eager for business and the opportunity to satisfy customers. If they are not part of it, then they may not stay in business for a long.
 Cost Effective: According to an authentic survey, it costs five times more to gain a new customer. Some survey also proves the fact that with just a 5% increase in
customer retention, a firm can raise its profitability by 25% and in some cases as much as 85%. Similar studies also show the longer a company keeps a customer, the more money it will make. This happens because consumers spend slowly at first, but with succeeding years of good experiences, they will spend increasingly more.
Why effective customer service important?
Because of customers are important for banking sectors. Banking business is standing on the basis of customer’s deposits and loans.
Why important?

Bankers have to have their customers to earn money. If bankers do not give them good services they will not come to the organization again and they will persuade others not to come to the bank. So by giving bad service they will lose their customers and also future customers, but by giving good service they can get new customers and never lose any customer. (Ref: Soroosh Karimi. info@sorooshk.com)
It is a matter of fact that… it costs 5 times as much to bring in a new customer, than to keep an existing one. When people become customer, they want to be loyal. So, why do they leave? Most of the time, they leave because of small oversights and lack of attention to plain and old customer service. (By Adrian Miller)
Customer Service as a Competitive Advantage
Fierce competition demands more and more innovations to differentiate organizations from one another. With technology available to virtually all organizations today, traditional feature and cost-benefit advantages no longer offer for a sustainable competitive advantage. More and more companies are turning to quality of service to make themselves prominent from their competitors. They are talking to their customers to determine what is most important to them and how they can further add value to them.

5.4 STEPS TO A CUSTOMER SERVICE INITIATIVE
Each organization’s customer service plan must be customized to suit its own needs, but, more importantly, it must satisfy the needs of its customers. There is no hard and fast rule for an effective customer service programe; each one will have its own distinct differences. However, there are some common steps that we need to consider when setting up our programe.
STAFF RESPONSES TO EXAMPLES OF GOOD CUSTOMER SERVICE:
Following up if they were able to get what they wanted make them aware that we care.

10 (Ten) tips for customer services:

1. Hire people who have a service attitude. Some people simply enjoy serving others, their organizations, and even their communities. The spirit of service dominates their personality. This attitude of service has nothing to do with money or background, and people who have this attitude are not necessarily the most outgoing or bubbly. This type of person will move our business forward. These people make the best salespeople as well.

2. Treat each customer as an experience while dealing with them. But bankers have a few short moments with customers. Bankers do not have time to complain about anything else. Ask bankers, “How to be better experienced?” Is it a better option to treat customer by name and how can bankers ask without being too aggressive? How to control the environment in this company? How it is affecting their 5 senses? Exceed their expectations just a little with their senses and with bankers attitude to serve and please and it might create a memorable and compelling experience.

3. Regularly inform all the employees about what’s going on in the company. Employees need to know what’s happening. What new products are we offering? When will they be available? What kind of advertising will take place in the next month? Will any physical changes be happening in
offices? Will new branches be added?

4. Make every decision with the customer in mind. Employees need to know some questions such as, “Do the customers like what they are doing?” and “Would the customers like different type of promotion”

5. Make the customers an agenda item at every staff meeting. Present their point of view and ask these questions: What would the customer think of this? Would this move be fair to them? How to serve the customers better or differently?

6. Empower the employees to do the right thing. And try not to hold it against them if the situation doesn’t turn out perfectly. That means giving employees the power to do whatever has to be done to make a customer’s experience a WOW experience.

7. Continually ask employees how to improve and add value. If they do not keep asking and pushing, it may start to slip behind the competition. Customers have more than one choice and the competition is aggressively marketing to them. They know what is being offered by others. Be ahead of the curve by asking what can be done to add value to the customer’s experience with the company.

8. Create an atmosphere of excellence. Let it be known that everything company employees do has to be the best. One thing to remember that winning organizations are always raising the bar. If it is pushing to do better than yesterday, everything will be left in the dust of the competition.

9. Continually do the unexpected. Have the reputation for doing the unexpected, and customers will always expect something different and exciting from the company. This doesn’t mean that bankers have to have dancing clowns in the lobby, but having the same lollipops that everyone else gives out is not at all unexpected. Do something different. These are the things that customers talk about.
10. Never let an untrained employee have customer contact. Employees representing the company, and the brand. Working with customers is the most important thing they will do. Give them the tools necessary by giving them adequate training to handle customers.

PERSON SPECIFICATION
PRINCIPAL CUSTOMER SERVICES OFFICER

customer service

role at a managerial

level utilizing CRM

technologies‘Can Do’ FlexibleCustomer Focused

Self-starter Promote positive and professional image of the Service. Commitment to

qualityDESIRABLEDESIRABLEDESIRABLEDESIRABLEPractitionerCoaching Skills

Budget

ManagementCommunity, culturaland social issuesBangladeshiComputer Driving

Management

Qualification

PeoplePioneer leadership containing better quality full service

5.5 UNDERSTANDING CUSTOMER REQUIREMENTS
Sources of customer information -Often organizations claim to know their customers’ requirements, yet they’ve never taken the time to do a real thorough analysis. Sure, they probably know their customers’ general requirements, but do they know what is really important to their customers, how they measure up relative to the important factors and how they compare to the competition in the areas most important to the customer? In most cases they don’t and won’t unless they collect this information in a formal, systematic manner.
Own organization – Without looking too far, employees will be able to uncover potential areas of customer dissatisfaction by reviewing the key operational data. Check on the status of backlogs or stock outs. Chances are if these are significant where some customers that are not happy with the delivery cycle time.
Another place to look is the internal reject or yield rates. If number of rejects is high or the yields low, they can bet that some bad product (deposit scheme) is leaking out to the customer. Even if the inspection of the product done before shipping it to the customer, tests have shown that inspection isn’t 100% reliable–some bad product will sneak out.
Now consider a service company–maybe even some local private bank company. Customers are typically concerned with the turnaround time for performance of service. The telephone company could review its internal records for the average turnaround time. If it is excessive they probably have some unhappy customers. Another measurement to look carefully that is the number of times they must re-do a service.
Review the internal data to pinpoint potential problem areas for customers. Also, gather all employees together and get their inputs on the customers’ satisfaction level. Assemble a list of strengths and weaknesses, but do not get bogged down in the details.

Surveys and focus groups are two of the most popular methods for gathering information on customer needs. Surveys are written questions given to individual customers; focus groups are oral questions administered to groups of customers. Both must have clear and specific goals up front in order to be successful.
A broad questionnaire or focus group session provides lot of information, but it is usually too general to be of any value. Objectives must be clear and questions specific if they are to provide results that can be acted upon. Although focus groups and surveys are similar in what they want to accomplish, one may be more suitable than the other, depending on the application. Surveys are relatively simple and economical to administer and can reach large amounts of customers, but the information can sometimes be limited since it is a one-way exchange of information.
On the other hand, focus groups take more time and effort, are often more expensive to administer and may not be as far- reaching as surveys, but their interactive nature may produce clearer feedback. The best results are found when combinations of both techniques are used to identify customer requirements and expectations.

5.6 CREATING CUSTOMER VISION AND SERVICE POLICIES
The vision–In order to transform the company into one that values customer satisfaction, company must establish a customer-entered vision. So what is a vision, exactly? According to Richard Whitely of the Forum Corporation, a vision is … a vivid picture of an ambitious, desirable future state that is connected to the customer and better in some important way than the current state.
In other words, vision is what employees want their organization to become, what they want is “to grow up to be.” And a client-centered vision is one which takes its direction from the customer.
A vision has two critical functions that it performs. First, it serves as a source of inspiration that rallies the organization around a single unifying purpose, which in this case is the customer.
The second duty a vision performs is that it guides decision-making and aligns an organization so that all functions work towards a single goal. In the business world, there are rarely black and white decisions to make, but there is an awful lot of Gray.
With a vision that spells out what the organization wants to become, it provides direction needed to make better decisions. After all, as a bank employee who knows where the business wants to head is more likely to make decisions that reinforce that goal.
So how does a banker create a vision? It’s really quite easy. Vision statements need not be elaborate. For instance, first world countries banking service are “Quality, Service, and flexible customer service.” so as a banker Keep the vision short and concise so that other organization is clear on the meaning.
Many companies make the mistake of trying to create journalistic masterpieces. The only problem is that they tend to be so long, no one in the organization really knows what it means. The hard part in creating a vision is deciding what employees want the organization to be in the future.
DEALING EFFECTIVELY WITH CUSTOMERS:
Now, once it has established the customer-centered vision and created customer-friendly policies, bankers become ready to sharpen their skills necessary to deal effectively with the customers. These skills can be segregated into two areas–communication skills and problem-solving skills.
Communication skills–How to communicate to the customers is just as important as what is to communicate. Following I will find some behavioral skills that will communicate to the customer that I am an organization that values their business

Greet the customers–”Put them at ease and make them feel comfortable!” When the customer or prospective customer first walks in or telephones with an inquiry or order, make him feel welcomed. This sets the tone for the rest of the transaction. If this is the first time with this customer, this is when first impressions can help or hurt, depending on how well it makes the customer feel within those first critical moments.
Value customers–”Let we know that we think we are important!” Customers want to feel special, and to make them feel special the attitude and behavior must say, “You’re the customer–you pay my salary. You make my job possible.” When it is time to value customers, sincerity makes them feel good about the organization. A customer-focused organization is not in business to deliver a product or service, but, instead, is there to enable people to enjoy the benefits of its product or service. The difference is demonstrated by the temporary employment agency that is in business not to fill in job vacancies with temporary personnel, but rather to help their customers enjoy the benefits that their service provides–immediate placement of highly skilled individuals. The difference is subtle, but the effect is not!
Listen to customers–”Please listen to me and understand me!” Listen totally–to the customer’s words, their tone, their body language. According to a UCLA study on communication, 7% of our communication is verbal, 38% is tone of voice, and 55% is nonverbal. Listening totally will enhance my understanding of what customer really needs as well as make them feel valued.
Help customers–”Help me get what we want!” Customers do not go for any services for what they are, but, instead, they using their Account for the benefits that the services offer. That is why bankers must be customer-focused rather than product- or service-focused. Do not waste the time explaining the service features. Explain how the service benefits them–how it satisfies a need, solves their problems, or gives them extra value.

Problem-solving skills —- Problems will always occur, but taking responsibility for these problems can turn a negative customer into a positive one. Studies show that if a problem is resolved quickly, 98% of our customers will open account again and even tell colleagues that they had a positive experience! However, the longer the problem drags on, the more frustrated a customer becomes, and the less likely he is to be satisfied.
Finally, I want to tell that customer service is really interesting and enjoyable. In this way we can meet with a lot of people. A customer service officer has a lot of job responsibility. He has to motivate the customer in the same time he has to describe his organization product and service policy, has to settle the customer all kind of problems. It is a busy and most concentrated job. In this way he has to achieve his branch target as well. Now a day’s whole world faces the credit crunch problem. Comparatively the situation of Bangladesh is good situation than other 1st world countries. Because of banking is product and service policy. In first world now a day banking account open is a great achievement matter. In 1st world countries bank account is most important for the people very steps of life. 1st world banking and Bangladeshi banking policy and services are totally different.

CHAPTE SIX

Loans & Advance

6.1 Loans and Advance

The main business of Bank is to settle loan & advance. Bank collects deposits of saving from one kind of people of society and invests these deposits as loan, subject to conditions, to other kind of people. Bank not sanction cash loan but also credit its good reputation, coincidence faith etc. To settle loan by the bank is called credit or loan and advance. It can be mentioned that banks do business by savings or deposits collected from local people. So before settle loan the band must ensure about the security of the disbursed amount (loan) and he also ensures about the repayment of the loan.

Different Advances Offered by NCCBL

Process of handling loans:

6.2 Types of Loan
The Loan and Advances made by the NCCBL can broadly be classified by following categories-
Continuous Loan
Demand Loan
Term Loan
Other Special Scheme

Continuous Loan
These are those advances which do not have any set schedule for drawing or disbursement but usually have a terminal date of full adjustment or repayment. Example: Cash credit (CC), Over Draft (OD).
Continuous Loan of NCCBL for last five years (2004-2008) is-
2004 2005 2006 2007 2008
3196 3201 4200 4320 4760
Annual Report: 2004-2008

Cash credit (CC)
A Cash Credit (CC) is an arrangement by which the customer is allowed to borrow money up to a limit. This is a permanent arrangement and the customer need not draw the sanctioned amount at once, but draw the amount as and when required. They can put back any surplus amount, which they may find with them. Thus Cash Credit (CC) is an active and running account, which deposits and with drawls may be affected frequently. Interest is charged only for the amount withdrawn and not for the whole amount charged. If the customer does not use the Cash Credit (CC) limit to the full extent, a commitment charge is made by the bank. This charge is imposed on the unutilized portion of Cash Credit (CC) only.
Cash Credit (CC) provides an elastic form of borrowing since the limit fluctuates according to the needs of the business. Cash Credit (CC) is the most favorite mode of borrowing by large commercial and industrial concerns in our country.
Cash Credit (CC) arrangements are usually made against the security of commodities hypothecated or pledged with the bank.

a) Cash Credit (Hypothecation):
This type of credit is allowed to the traders and industrial borrowers for promoting trade and commerce and industries. In case of hypothecation the possession of goods is not given to the bank. The goods remain at the disposal and in the go downs of the borrower. This is given access to goods whenever it so desires. The borrower furnishes periodical return of stock with the bank.

b) Cash Credit (Pledge):
Allowed for promoting trade, commerce and industries of the country against pledge of stock in trade under Bank’s control. In case of the pledge, the goods are placed in custody of the bank with its name on the go down where they are stored. The borrower has no right to deal with them.

Cash Credit (CC) of NCCBL for last five years (2004-2008) is:
2004 2005 2006 2007 2008
1532 1910 2243 2407 2663
Annual Report: 2004-2008

Overdraft:

Overdraft (OD) is an arrangement between a banker and its customer by which the latter is allowed to withdraw over his credit balance in the current account up to an agreed limit. This is only a temporary accommodation usually granted against securities. The borrower is permitted to draw and repay any number of times, provided the total amount overdrawn does not exceed the agreed limit. The interest is charged only for the amount drawn and not for the whole amount sanctioned.
There are two kinds of overdraft.
a) Secured overdraft
b) Unsecured overdraft

a) Secured overdraft: Secured overdrafts are loans which have collateral attached to them in the form of a lien. A lien is a monetary claim against a property to be fulfilled before repeat ownership can take place.
Secured overdrafts divided into two forms. There are- (i) Secured overdrafts financial obligation (SOD-FO) (ii) Secured overdrafts general (SOD General).
i. SOD (FO): Allowed against financial obligation (Like- FDR, SSS etc.) for promotion of economic and business activities.
ii. SOD (General): Generally allowed t9o the traders for business promotion and economic activities. In case of SOD (General), bank keeps the land as collateral.

b)Unsecured overdraft: Banks, sometimes grant unsecured overdraft for small amount to customers having current account with them. Such customers may be government employees with fixed income or traders. Unsecured overdrafts are permitted only where reliable source of funds are available to a borrower for repayment.

Overdraft of NCCBL for the year 2004-2008 is:
2004 2005 2006 2007 2008
1663 1291 1957 1913 2097
Annual Report: 2004-2008

Demand Loan:

The loan which become payable after serving demand notice by the bank concerned are termed as Demand Loan.
Example: LIM, LTR, PAD, Loan against Packing Credit, Loan against Investment etc.

Demand Loan of NCCBL for the year 2004-2008 is:
2004 2005 2006 2007 2008
2992 4300 5305 3790 3459
Annual Report: 2004-2008

Term Loan:
These are loans which have a specific term for repayment as specified in the loan agreement. Example: Loan (General), Transport Loan, Project Loan, Lease Financing, small Business Loan, Personal Loan, House Building Loan and Other Loan etc.

Term Loan of NCCBL for 2004-2008 is:
2004 2005 2006 2007 2008
1611 2289 2398 3544 5552
Annual report: 2004-2008

Loan (General):
In case of loan general, the banker advances a lump sum for a certain period at an agreed rate of interest. The entire amount is paid on an occasion either in cash or by credit in his/her current account which he/she can draw at any time. The interest is charged for the full amount sanctioned whether he/she withdraws the money from his/her account or not. The loan may be repaid in monthly installments or at the expiry of a certain period.

Loan (General) of NCCBL for 2004-2008 is:
2004 2005 2006 2007 2008
927 1628 1632 2697 2182
Annual Report: 2004-2008

Higher the loan amount higher the income of the bank. In this sense, NCCBL is doing well. In the year 2000 this loan general was Tk.927 million, but in 2003 it was Tk.2697 million. This picture indicates that NCCBL is aggressive to earn interest income. By doing this job management maximize the profit of the bank and maximize the wealth also.

Housing Loan
A large amount of money needed to construct a house or purchase a apartment. It is not possible to of all people to construct a house by only own income sources. Especially this problem largely faces by middle level and fixed income people. To solve this problem, NCCBL’s offer Housing Loan with easy repayment condition and less interest rate.

Detail information of Housing Loan:
Purpose of Loan:
a) To help service holders, self-employed persons, businessmen, professionals and also those who have the capability to repay loan for purchase of flats/house/construct buildings and thereby improve their quality of life.
b) To contribute to the reduction of acute housing problems of the country.
c) To help the prospective clients get housing loans on easy terms and without any hardies.
d) To strengthen NCCBL.
e) To contribute towards improvement of socio economic condition of the society.
Housing Loan Product of NCC Bank Limited:
a) Flat purchase
b) Own Construction
c) House Extension
d) Readymade house purchase

Target Group: People of all sections of the society who are desirous of purchasing flats/house/constructing buildings/flats on land owned through registered purchase/lease from the government/any other government approved authority and who have the capacity to repay the loans within the validity period of the loan out of the income generated by the flats/house and also their other sources of income, may be the ideal customers.

Designated Branches:
a) Gulsan Branch.
b) Dhanmondi Branch.
c) Mirpur Branch.
d) Uttara Branch.
Maximum size of loan: Loan for amount exceeding Tk.5.00 lac to the maximum of Tk.50.00 lac may be considered under the Housing Loan Scheme.

Necessary Document for Housing Loan:
The following papers are to be submitted while applying for loan:
 For Employed-
i. Employment certificate/contract paper.
ii. Pay slip for last 3 months (showing all deduction).
iii. Bio-Data (income-earner).
iv. Bank statement for the last 12 months.
v. If applicant has any other income, proof of that may be given (e.g. Rental agreement).
vi. TIN Certificate.
vii. Letter of Consent from the guarantor (if required).
For Self Employed-
i. Statement of business, detail such as product/clients etc.
ii. Income Tax assessment orders/returns for 3 years.
iii. Audited Profit & loss Account and Balance Sheet for last 3 years.
iv. Self-assessed Profit & loss Account for last 3 years (for Proprietorship Firm).
v. Bank Statement of self and business for last 1 year.
vi. Bio-Data.
vii. If applicant has any other income, proof of that may be given (e.g. Rental agreement).
viii. TIN Certificate.

For Private Land-
i. Ownership deed (original).
ii. Baya deed (original/certified/photocopy).
iii. Recent Survey Report (i.e. Math parcha duly attested).
iv. CS/RSSA Parcha.
v. Mutation ParchaKhatian.
vi. Up to date “Non-Encumbrance Certificate” for 13 years.
vii. Approved plan and approval letter of Rajuk Authority.
viii. Detailed estimate of the cost of construction prepared by a qualified Engineer/Architect at current market rates.
ix. Photograph of the project.

House Building Loan of NCCBL for 2004-2008 is:
2004 2005 2006 2007 2008
204 220 238 375 429
Annual Report: 2004-2008

Project Loan:
NCC Bank Ltd has their project loan scheme. Though they do not invest in project loan extensively but now they are planning on project loan. Because project loan is huge investment and it completely depends on success of the project for that reason bank always keeps eye some major factor before invest on project loan. Before invest on project loan bank always who is the people involves in the project security standard of the borrower. Then bank looks for the feasibility report of the project. Borrower has to completely show the feasibility report to the Head Office. In the feasibility report borrower has to show them what the mission of the project, who are the target customer, comparative analysis of the project with other same project, how the project meets the demand of the target customer, for which purpose the loan is asking for, detail information of the project operation, detail price list of the equipment, approximate repayment planning by the borrower. Branches do not have any authority to sanction any amount of loan for project loan. Branch can only assess the project feasibility, evaluate the client check the necessary papers and collect it from the client. After getting the entire necessary papers branch makes a proposal for the loan and send it to the head office. Head Office then re-evaluates the proposal with necessary papers. Then head office aging inspects the project.

Detail information of project Loan:
Name and address of the client.
Particulars of the directors (Directors percentage of the share in the project).
Detail of the approved facility.
Nature of the facility-Term loan.
Amount of sanctioned loan.
Purpose of the loan-for which specific reason client wants the loan for purchasing machinery.
Rate of interest-16% p.a. at quarterly rest, subject to change from time to time.
Grace Period- after disbursement installment will not count from the following month. After completing the project installment period will be count from that month in which month the project is complete and start its operation.
Validity of the loan means how long it will take to repay the loan.
Mode of adjustment-usually for project loan installment count quarterly, because of bulk of installment. According to the loan amount bank calculates how many installments needed for the repayment of the loan amount and how many years take for the repayment, including the grace period.

Necessary Documents for the Project Loan:
Tax Identification Number (TIN) Certificate.
CIB (Customer Information Beauro) response form.
Party’s application
Credit proposal and approval form
List of collateral securities
Feasibility report
Trade license
Memorandum & articles of the association
Resolution
Net worth calculation of business & individual
Legal opinion
Valuation assessment
Quotation
Deed of lease agreement
CIB inquiry form 1, 2 and 3.

This is also an important instrument of term loan. This scheme covers the following areas- Plastic Industry, Medical service provider etc.

Project Loan of NCCBL for 2004-2008 is-
2004 2005 2006 2007 2008
157 143 314 118 179
Annual Report: 2004-2008

Transport Loan:
NCC bank Ltd was an investment company before the conversion in a bank. So they have good idea about lease financing. Transport loan is fallen under lease financing, though it is called transport loan but it is actually fallen under leasing term and condition. NCC Bank Ltd does not have any car loan scheme for individual clients, they had this scheme but the scheme is completely stopped for the time being.

Detail Information of Transport Loan:
Name and address of the borrower & company
Nature of limit- Loan (Transport)
Purpose of the Loan- To procure vehicle for industrial or local transport.
Nature of business of the borrower- Transport business.
Amount of the limit- the loan amount
Margin- 50% cash against each vehicle
Debt-Equity ratio- 50:50 (Bank cash 50% and Party cash 50%)
Validity- No of months (Calculated by the bank how many months it will take to repay the loan against each vehicle) from the date of disbursement against each vehicle.
Rate of interest- 16% p.a. at quarterly rest, subject to change according to market situation.
Mode of disbursement- The loan to be preferably disbursed after getting of vehicle. If advance payment is considered as sine-qua-non the payment to be made direct to respective seller through payment order after realizing party’s full equity with instruction to deliver the vehicle to the bank’s representative. All other costs insurance premium, route permit etc. to be borne by the borrower. Sale receipt to be issued in the name of bank account party.

Necessary Documents for Transport Loan:
CIB (Customer Information Beauro) response form.
Party’s application
CIB inquiry form 1, 2 and 3.
D.P. Note
Letter of arrangement
Letter of disbursement
Letter of authority
Letter of hypothecation
Letter of lien

Transport Loan of NCCBL for 200-2008 is:
2004 2005 2006 2007 2008
77 63 49 44 46
Annual Report: 2004-2008

Other Special Scheme

Consumer Scheme
The Scheme aims at improving the standard of living of the fixed income group. Under the scheme the clients may secure loan facilities at easy installments to procure household amenities.
Lease Finance
An entrepreneur, under this scheme, may avail of the lease facilities to procure industrial machinery (without having to purchase it by down payment) with easy repayment schedule. The clients also get special rebate in their income tax payment under the scheme.
Lease financing is one of the most convenient long term sources of acquiring capital machinery and equipment. It is a very popular scheme whereby a client is given the opportunity to have an exclusive right to use an asset, usually for an agreed period of time, against payment of rent. Of late, the lease finance has become very popular in almost all the countries of the world. 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 assets. In a capital scarce economy like ours. Lease financing is suitable for firms to acquire capital, Machinery, Equipments, medical Instruments and Automobiles etc. And thereby employ

their own resources more advantageously in some other investments. Lease financing also helps a firm to reap significant economic benefit through tax saving and by reducing the risk of the equipments becoming obsolete due to the technological advancement.

Lease Financing of NCCBL for 2004-2008 is:
2004 2005 2006 2007 2008
71 95 103 82 80
Annual Report: 2004-2008

Non Performing Loan:
Loans are designated as none performing when they are placed on nonaccrual status or when the terms are substantially altered in a restructuring. Nonaccrual means that banks deduct all interest on the loans that was recorded but not actually collected. Banks have traditionally stopped acquiring interest when debt payments were more than 90 days past due by the end of the reporting period. This permitted borrowers to make late partial payments and the banks to report all interest as accrued, even it was not collected. On occasion, banks would lend the borrower the funds that were used to make the late payment.

From the above figure we can see that NCCBL’s non performing loan amount increased day by day. But it doesn’t show the real picture. Because, the total loan and advances increased then non performing loan also increased over the preceding year.

6.3: Rate of Different Loan & Advances:

b. CC (Hypothecation)16%

16%02.Overdraft (OD)a. SOD (FO)

i. SOD (FO) against FDR

SOD (FO) against NCCBL’s FDR

SOD (FO) against other Bank’s FDR

ii. SOD (FO) against SDS

iii. SOD (FO) against SSS

b. SOD (G)

FDR Rate+3%

15%

15%

15%

16%B.Term Loan 01.Small Loana) Small Business Loan

b) Personal Loan

c) House Renovation Loan16%

16%

16%02.Consumer Finance Scheme16%03.Loan (G) against (P.F)16%04.HouseBuilding Loan13%05.Transport Loan16%06.Project Loan16%

Basis for loan classification: All loans and advances are classified on the basis of two criteria:

Objective criteria

Qualitative judgment criteria

CHAPTER SEVEN

Foreign Exchange (Import)

7.1 Import & Letter Of Credit

The import and export trade of our country is regulated by Chief Controller of Import and Export (CCI&E). No person who has been granted registration by the CCI&E shall indent, import or export anything into or out of Bangladesh except in cases of exemption issued by the government.
Business person in our country can import product from another country, for this transaction they transfer Letter of Credit. In this part we will discuss about import procedure as general basis because this procedure is accepted worldwide.

Letter of Credit:

Letter of credit is a written undertaking issued a bank (Guaranteeing payment) at the request of buyer (Importer) to the seller (Exporter) to pay at sight or a determined future date, up to a stated sum of money, within a prescribed validity of the instrument (L/C) and against stipulated shipping documents.

7.2 There are different types of L/C

Circular letter of credit: It is issued by a bank at the request of this customer for availing credit facility from beneficiary or draws his traveling expenses from banks in different places. But with the introduction of Travelers Cheques and Credit Card, issuing of circular L/C is now outdated.

Revocable credit:

It is credit, which can be revoked or cancelled at any time without the consent or notice of the beneficiary. Irrevocable credit: This credit cannot be revoked, revised or amended/ changed without the consent of all the parties i.e. the buyer, seller, issuing bank and confirming/ advising bank. Red-clause or packing credits: Which bears an endorsement by opening bank on the credits in “Red-Ink” a clause authorizing the confirming or negotiating bank to pay the beneficiary against his drafts alone coupled with his simple promise to provide the documents in future. “Packing” because the merchandise

Bought in the interior is shipped to the ocean port, assembled and packed for over as shipment. Subsequently, bank can reimburse the amount by negotiating the shipping documents plus interest accrued.

Revolving credit:
An L/C can be revolving credit provided the wording will permit the amounts of drawings to be again available to the beneficiary within the validity period. clause of opening bank to advising bank. The amount paid under this credit become available to you upon your receiving from us advice to this effect. The amounts paid under this credit are again available to you automatically until the total of the payments reaches a fixed amount. L/C opening branch doesn’t need to get permission from HO to open L/C each time if it is in the limit.

Stand by letter of credit: It is a contractual agreement between one bank to another or a bank to its customers to provide agreed amount of funds as per arrangements set in the agreement. Applicable only in case of subsidiaries of a bank abroad when they like to borrow from others in that country since Parents Company is restricted by the law of the land to issue guarantee for its subsidiary company.

7.3 Participants of L/C opening
Importer: A company can import finished goods or purchase raw materials to produce the product.

Exporter/ Beneficiary: Those who supply raw material or finished goods.

Issuing bank: L/C opening bank is called issuing bank or L/C opening bank. Some time issuing bank also does the work of advising.

Advising bank: Advising bank will receive the L/ C and send it to exporter or negotiating bank
Negotiating bank: On behalf of exporter negotiating bank do all the formalities with the issuing bank.
Reimbursement bank: Issuing bank can pay to the negotiating directly or through reimbursement bank. In this bank, issuing bank has an account, which is called “a/c. in this a/c issuing bank deposit required amount for L/ C payment.
Add confirmation: Supplier may want to receive payment from a specified and reputed organization through that bank they will collect their payment.
Syndicate financing: It may be difficult for a small bank to finance for a big amount of L/C. In this, few banks may finance circumstances L/C.
Indenter: An exporter may have an agent in the importing country. Then they do all process and they send “Indent” to the importer. Indent includes all information required by importer as types of product, price, quantity, shipment date, negotiating bank etc.

7.4 Import procedure

At the request of the buyer, issuing bank opens L/C on behalf of importer.
Advising bank in the seller’s/ exporter’s country advice L/C to the beneficiary.
The issuing bank may also request advising bank to confirm the credit.
The advising bank will advise/ inform the exporter that the L/C has been issued.
As soon as the seller/ exporter receive L/C and are satisfied with the terms and conditions, they take initiative for shipment of goods.
After making shipment, the exporter submits documents to negotiating bank for negotiation along with L/C copy.
Negotiating bank scrutinizes the documents and if satisfied, then they send the documents with forwarding letter to the L/C opening bank.
After receiving documents, the opening bank checks the documents and if no discrepancy is found, makes payment directly to the negotiating bank or through reimbursement bank.

7.5 Required documents for L/C opening

Parties Application for Issuance of L/C
Valid IRC(Import registration certificate)
IRC renewal Chalan copy
L/C application from signed by applicant
Proforma invoice/ Indent signed by Application
Trade license validity
TIN and VAT certificate validity
Registration certificate from Broad of investment
L/C authorization form signed by Applicant
Valid membership certificate (CC & I)
Insurance over note
Credit Report( if required)
CIB Inquiry
I. Understanding
II. List of other business ownership
III. Others bank liabilities
Last 03(Three) years/ Projected audited Financial Statement
Net worth Business and Individual( Director/ proprietorship)
Details of Director/ Proprietor/ Name- F/M Name- Address- Age- Destination- Share- net worth)
Bonded ware house license validity
Fire license validity
Fire Insurance policy

7.6 Proposal for L/ C opening

If all required document is clear then issuing branch will prepare the proposal by following way:

Proposal for L/ C opening

Reference No: ________________ Date: (proposal preparation date)
Senior Executive Vice President
(Name of the Bank)
Head Office
Dhaka.

Re: – Proposal for allowing permission to open L/C (Sight)/ days deferred for (FC) e.g. $6,138 Equivalent to Tk. e.g. 3,72,000 at 10% margin and subsequent LIM/LTR/Term loan facility for Tk. e.g. 3,72,000

A/c (Name of the company)

At the request of our above-mentioned client we would like to request you as under —— To allow us permission to establish the letter of credit(s) as per the following details:

I. Among of L/C (FC) e.g. $6,138 @ Tk. 59.80 (Exchange rate) Eqv. Tk. e.g.3, 72,000margin 25% (sanction by HO).
II. Sanction of subsequent LIM/LTR/Term loan for Tk. e.g. 3,34,800 for 45 days

Particulars of the clients:
a) Name of the account: : Name of the company
b) Address
c) Business:
d) Office:
e) Factory:
f) Account no and date of account opening: 🙁 Info filled by bank)
g) Date of first Sanction:
h) Constitution/ Legal status:
i) Constitution/ legal status : Private/Public/Others
j) Date of Incorporation/Establishment :
k) Date of commencement of business : :Date of issuance license
l) TIN no : :(Info filled by bank)
m) Nature of business : :e.g. deep tube well
n) Net worth of business : :Info given by party
o) Market/ place of business/ area of operation :
p) Relationship history : : Relationship with bank
q) (e.g. company has been maintaining a CD a/c since 2000 and enjoying various credit facilities)

r) Capital structure (for ltd. Company)
a. Authorized capital : Capital investment in the business
b. Paid up capital : : Deposited amount is BB at the
establishment period of the company
c. Investment in business : Invested amount in the market.
d. IRC no
e. Valid up to :
f. Type of IRC : Commercial/ Industrial

2. Name of the proprietor/partners/ directors:
Name Father’s/ Permanent Present Age Share Status Net
Mother’s/ add with add (%) worth
Husband’s phone no with
name Phone no

3. Particulars of the guarantor:
I. Guarantor’s name
II. Address
III. Permanent
IV. Present
V. Relationship of the guarantor with the applicant
VI. Guarantors back ground
VII. Net worth of the guarantor
VIII. Liabilities with our bank/other banks and status:
Name
Of account Name
Of bank Nature
Of Advance/
Facilities Amount of limit/ Facilities Validity Present outstanding Classification status

4. Liability position of the client/ Allied concern with our bank:
Name

of the

branch Name

of

account Nature

of

advance Amount

of limit Validity Present

outstanding Overdue Security
Funded
Non-

Funded
Total

Break up liability L/C:
Name of a/c/ allied a/c L/C no, date and Amount Description of goods Margin held Shipment validity HO sanction reference

PAD/ABP:
Name of a/c allied a/c PAD/ ABP no, date of creation Amount of
PAD/ ABP Present outstanding Maturity date Over due Item & related L/C no Date of arrival of goods at the port Related HO sanction no

LIM/LTR:
Name of a/c allied a/c LTR/LIM
no, date of creation Amount of LTR/ LIM Present outstanding Maturity date Over
due Item & related L/C no Whether LIM goods are under effective control of the branch

5. Liability position of the client/ Allied concern with our bank:
Name of the bank Name of the borrower Nature
Of Advance Amount of limit Validity Present outstanding Over
due Classification status

7. CIB information:

8. Global exposure:
Nature of

advance Amount

of limit Outstanding Overdue Classification

status
Funded
Non-funded
Total

9. Performance of the client/ allied concerns (last 3 years) with our bank:
Import
Year L/C opened Documents retired Outstanding
No Amount No Amount

Export
Year Export made Proceeds realized Proceeds yet to be realized Others

10. Earning from the client/allied concerns during last 3 years:
Year Interest Commission Others Total

11. Particulars of L/C:

I. Description of the commodity: Company name
II. Quantity:
III. Unit price:
IV. Total price:
V. Sales term:

VI. CFR or C&F (Cost & freight): C&F is a contractual trade term indicating that the price quoted includes cost of goods and transit costs. I.e. freight up to the named port of destination.

VII. FOB (Fright on board): Deliver the goods on board a ship at a port of shipment named in the Sale L/C at his own cost and risk. Seller is also to provide a clean bill of lading under this contract. Buyer’s primary responsibility is to take delivery of the goods after payment of freight, duty and taxes, port dues etc and bring the goods in his own premise at his own cost and responsibility.

VIII. CIF (Cost, Insurance and Freight): The cost of the goods, the insurance and the freight to the destination are included in the contract price. Under this trade term, the seller, besides, cost of goods and freight has the added obligation to arrange/ procure insurance against the risk of loss and damage to the goods during the carriage up to the named port of destination.
IX. H.S code no : product validity to import
X. Country of origin : Manufacturing country
XI. Name &address of the beneficiary:
XII. Status report of the beneficiary:
XIII. Obtained/ not obtained:
XIV. Mode of shipment e.g. truck Port of shipment:
XV. Last date of shipment:
XVI. Utilization of the goods: : Trading/ Own utilization
XVII. Marketing arrangements:
XVIII. Margin proposed by the party:
XIX. Margin recommended by the branch:
XX. Branch’s total exposure on the proposed item of import:
XXI. Branch’s total exposure on the proposed item of account of the client:

12. Calculation of landed cost: MT

TK
C&F value Tk.

Add 1% Insurance premium
(A) Subtotal
Add 1% port fees on (A)
(B) Assessment value
Tariff value, if any

Duty 5%on (B)
Supplementary duty on (B)
(C) Subtotal
Vat on (C)
AIT on (B)
DSC on (B)
Misc on (C)
(D) Total landed Cost
(E) Total landed cost is % on LC value
(F) a) Landed cost per MT
b) Market price per MT

13. Arrangement for retirement of relative import bill:
Cash LIMLTR Term loan others

14. In case of cash retirement of documents:

15. If post import finance is required:

I. Amount of post import finance : Tk.
II. Margin : :Tk.
III. The post import finance required for:
IV. Value / landed cost :Tk.
V. Duty, VAT and all other incidental charges will be borne by the client/ bank.

VI. Tenor:
VII. Storage of goods( whether pledge/LIM goods can be
Stored in protected and secured under effective
Control.

16. Certification

Whether goods imported are restricted or illegal as per IPO in force
Whether price of the items are favorable or competitive

18. Declaration
a) Check whether the borrower is the director of the bank or not (if yes, extent of share holding
b) Check whether the borrower is director or shareholder of the bank

7.7 Elements of L/C

Field 1: Sequence of total- If ½ is written means it may be revocable or irrevocable L/C.
Field 2: Form of documentary credit-Revocable L/C or Irrevocable L/C Field 3: Date of issuing L/C
Field 4: Date and place of expiry- Date of expiry and name of negotiating bank
Field 5: Applicant- Name of importing firm with address and telephone no.
Field 6: Beneficiary- Name of exporting firm with address and telephone no
Field 7: Currency code- In which currency transaction will be occurred.
Field 8: Maximum credit amount- Declared amount shouldn’t be exceeded.
Field 9: Available with be- Name and address of any bank in beneficiary’s country by negotiation
Field 10: Drafts at- Sight (exporter can demand payment after delivering the draft) DP (Payment will be done at a specific date).
Field 11: Drawer- Name of the L/C issuing bank.
Field 12: Partial shipment- Exporter can sent product at a once or part by part.
Field 13: Transshipment- Product will reach to its destination by changing transportation or not.

Field 14: On board/ DISP/Taking charge at/F- Product exporting country.
Field 15: For transportation to- From which check post product will reach to its destination.
Field 16: Latest date of shipment- During the specified time exporter has to finish the shipment
Field 17: Description of product with price and quantity.
Field 18: Charges
Field 19: Period for presentation- Date for submission of all required document.
Field 20: Confirmation instruction
Field 21: Instruction of payment/ Acceptance/ Negotiating bank.
Field 22: Sender to receiver information- Issuing and negotiating bank must follow internal rule.
Field 23: Documents required
Field 24: Additional requirements

All information will be register in the L/C opening register:
Date L/C# Name, add & IRC on of party Foreign currency amount
Equivalent of taka Description of goods Country of origin Advising bank
bank

Tenor Shipment expiry date Negotiating expiry date Amount of margin Commission Postage Telex Sign Name of reimbursement¬
bank

Reimbursement authority:

L/C issuing bank will send all the required documents to reimbursement bank through telex or SWIFT (Society for World Wise Inter Bank). Required documents are:
Name of negotiating bank
Name of beneficiary
A/c no of beneficiary

Document Checking:
Through negotiating bank exporter will send all required documents to issuing bank. Exporter may send original or copy documents. If issuing bank endorses the copy document then importer can release their product using it. It is very important to check all documents carefully because one small discrepancy may occur a big problem. Required documents are:
a) Currier receipt
b) Forwarding letter
c) Bill of exchange- An instrument is writing containing an unconditional order, addressed by one person or concern to another, duly signed by the marker as drawer of the instrument, directing a certain person or concern i.e. addressee as drawer to pay a certain sum of money only to the order, or to the bearer of the instrument on demand or at a fixed or at a determinable future time.
d) Bill of leading- A document signed either by the master of the ship or the owner, or their agents acknowledging the receipt of goods for carriage to a stated destination from the specified ports of shipment, the condition under which the goods accepted for carriage with an undertaking to deliver the goods to the consignee in the like order as received.
e) Insurance copy
f) Amount
g) Certificate of origin
h) Packing list
i) Invoice
j) Any type of phytozanitary, insecticides, fumigation certificate
k) If everything is clear then issuing bank will send money to the required bank mentioned in the forwarding letter.

7.8 Types of post import finance

If L/C issuing bank get original document first they will check the documents. Post import finance can be:
Cash: Party can repay their money in cash.
LIM (Loan against merchandise): LIM may be created at the request of the importer while he is not in a position to take delivery of import bills by making full payments of entire bank dues. In such a case PAD is transferred to LIM a/c and the overdue interest from the negotiation date to the date of transfer to LIM a/c is charged. Margin on the landed cost is ascertained and customs duty, sales tax etc are to be borne by importer. After clearance, consignments are stored in bank’s go down or party’s go down under bank’s effective control. Goods are delivered against proportionate payment and adjusted within the validity. Validity for commercial items is 30-45 days and for industrial item 90 days.
Force LIM: If it so happens that the importer does not proceed to retire import bill in spite of repeated request/ reminders and the imported goods incur demurrage at the port and further will expose more demurrage along with possibility of damage/ pilferage, bank take initiative to create forced loan in the form of LIM and keeps consignment in its go down for adjustment of liability through sale proceed of goods.

LTR (Loan against trust script): Bank has to part with the goods of the bill of lading without receiving the amount due from the customers, it is essential that bank should take a “Trust Receipt” signed by the customer, agreeing to hold goods or their sale proceeds in trust, for the bankers, so long as the entire amount due to the borrower is not paid off. If a customer who has signed such Trust Receipt fails to hand over to the banker, the salt proceeds of the goods sold, the former will be liable for criminal breach of trust.

LTR may be sanctioned at the request of confide customers of the bank. After sanctioning LTR import bills are handed over to the importer who will clear the goods from custom authorities by making payment of custom duty, VAT and other charges. The goods will remain at the custody of the importer. LTR is allowed for 30-90 days. It should be covered by collateral security and post dated cheques.

Composite limit: Now a days it is common practice for the bank to sanction composite limit for big customers in the form of CC (H), L/C limit, LTR etc. In this case sanction from HO is taken only once in a year. So it promotes customer’s service.

CHAPTER EIGHT

SWOT Analysis
And
Findings

8.1 SWOT Analysis of NCCBL

Both manufacturing and service oriented business organizations start to possess some weaknesses as time elapses. The weaknesses of an organization can be turned into opportunities if recognized on time. Moreover, overlooking any threat may result in loosing valuable business opportunities. For this reason, an assessment of every business organization is required to judge the performance from the aspects of its strength, weaknesses, opportunity and threat (SWOT) analysis of the bank is as follows:

8.2 STRENGTHS

The bank provides quality service to the clients compared to its other contemporary competitors.
Experienced bankers and corporate personal have formed the management of the bank which formulates the core business strategies.
Some services of the bank are automated which attracts large number of clients. For instance, the bank provides Automated Teller Machine (ATM) services in several locations.
The bank will very recently introduce on line banking which will enable it to automate all of its operations. At present, several banking functions
reperformed by computers, The bank is also a member o SWIFT (Society for Worldwide Interbank Financial Telecommunication) alliance access which enables the bank to exchange critical financial messages swiftly and cost effectively.
The bank has earned customer loyalty as organizational loyalty.
NCCBL has already achieved a goodwill among the clients that helps it to retain valuable clients.
The banking service is easily accessible and feasible.
Banks are the only media through which international trade and commerce emanate and entire credit transaction, both national and industry.
The authorized capital of the bank stood at Tk.2500.0M in 2007.
Paid up capital of the bank was tk 975.04 m in 2006.
The Reserve fund of the bank increased to tk 562.74M in 2006 as against tk 425.22M of previous year, increase being 32.34%.
Deposit of the bank at the end of the year 2007 was tk 21478.22M
Registering an increase of 33.66% over previous year’s figure.
The advances growth of the Bank in increasing rapidly.
The bank has been pleased to recommend 10% cash and 10% Bonus share for the shareholder.

8.3 WEAKNESSES

Delegation of authority is centralized which makes the employee to realize less responsibility. Thus, the employee morale is deteriorated.
The credit proposal evaluation process is lengthy. Therefore, sometimes valuable clients are lost and the bank becomes unable to meet targets.
No substantive use of Annual confidential Report (performance evaluation form) to reward or to punish the employee. Hence, the employees become inefficient.
The portfolio of the bank is not that much diversified because it invests major portion of its fund on Government securities.
The bank does not go for rural banking. But rural people are bankable which NCCBL get from the activities of the NGOs.
The bank lacks aggressive advertising and promotional activities to get a broad geographical coverage.
The bank has only a few ATM booths but not in mention able places. So, the scope of the use of ATM card limited.
The bank is burdened with a lot of mid and lower level employees due to doing the banking function manually, it is not only increases the operating costs but also consumer’s time as well as lesson customers’ satisfaction.
Compared to its competitors the bank does traditional activities.
A remarkable portion of the total human resources in inefficient.
The bank does not have any research and development division.
8.4 OPPORTUNITIES

The bank can introduce more innovative and modern customer services to better survive in the competition. For example, the bank can introduce credit cards and go for merchant banking.
The bank can offer micro credit business for individual and small business.
The bank can diversify its portfolio by introducing new sector.
Many branches can be opened to reach the bank’s services in remote locations.
The bank can recruit experienced, efficient and knowledgeable workforce as it offers attractive compensation package and good working environment.

8.5 THREATS

The common attitude of Bangladeshi clients to default.
Multinational banks with various attractive means of providing commercial banking services can take the bank’s lucrative clients away.
Opening the recent permitted new bank, without implementation of the needed reforms, could lead the unethical competition and horse trading in the country’s sector.
Local competitors can also capture a huge market share by offering similar products and services provided by the bank.
The most thinking threats of the banks come from the competitors. The bank has a chance to lose its market share to the competitors if it does not take necessary action.
Bangladesh Bank sometimes require Private commercial Banks (PCBs) to be abide by such rules and regulations which is not suitable for every commercial banks.
The most of the threats for the company are coming from the competitors.
Opening of the recently permitted new banks, without implementation of the needed reforms, could lead to unethical competition and house trading in the country’s troubled banking sector.
The size of the market and the present state of economic activity did not provide adequate scope for business for a large number of banks with poor management and backdated operating system.

8.6 FINDINGS
To do the internship in the National Credit and Commerce Bank Limited, I work with the officers and I observe many things. And with those observations, description as well as analysis of the topic, I find some factor those are particularly applicable for the NCCBL. Those are given below:

1. The NCCBL has online banking system for providing better service to the customers. But, the online bank is not implied in all the branch of NCCBL. Mainly, busy cities’ branches (Area like Foreign exchange branch in Motijheel, Dhaka, Chittagong) have that kind of facilities. Having manual and online banking at the same time, the bank sometime find some problem to do their inter branch activities.

2. To do the online banking, NCCBL use MICROBANKER a banking software to run a banking operation. This software has lot of option to do, but still it has some lacking. To this system, only limited use can login at a same time. So, all the employees of the bank cannot work with this software at a time, and some time it becomes slow to take the entry. And some statement cannot be provided by this software which other bank’s system can do, such as the MIROBANKER is not able to provide the statement of Fixed Deposit.

3. Only a few officers know, entirely, how to operate the MICROBANK (online banking software of NCCBL).
4. Currently, one of the most profitable products for NCCBL is Money Gram which is used to send foreign remittance. Money Gram is less charge and time than the Union Money Transfer and other money transfer agent which normally attract the growing market of foreign remittance. At the sometime, the bank is providing the service Money Express, UK money speed.

5. The NCCBL is using SWIFT (Society for Worldwide Inter Bank Financial Telecommunication) to provide better service for the customer of foreign trade and exchange. This allows doing many businesses with the foreign market. And it always gives change to the bank to update the foreign financial currency and market information regularly.

6. The accountability is working in the NCCBL. Every day they have finish their transaction and if there is any miss match, the employees have to explain it and even have to pay for it. So the condition of transparency is good here. This job use to do the Accounts and Administration Department.

7. The NCCBL has a training institute to build a better work force. When a provisional officer joint the bank, the bank arrange some training course associate with Bangladesh “Institute of Bank Management” to improve the officer’s skill.

8. The bank had introduced its ATM card to the market and it has only a few ATM Booths right now. Inefficiency of the management decision makes the scope of the ATM services limited.

9. NCCBL has introduced the Visa Card to the market in the year of 2005. It gives the customer access to the local and foreign market. NCCBL is providing this service with comparatively low interest and charge.

10. The NCCBL is showing their growth by increasing the number of branch. In 2000, it had 27 branches. The management of the bank is able to find of the need of the client mainly the middle class business owner. Though the strategy of bank is conservation, by selecting the right target group the bank has increase growth of their market. Currently they have 57 branches all over the country.

CHAPTER NINE

Data Analysis

9.1 Frequency Table

In this question respondents are asked about the reason for what they preferring NCC Bank. And 14 of the 25 respondents are said about good service, which is 56 percent of the respondents; 8 of the respondents are said about good will of the bank, which is 32 percent of the respondents; 2 of the respondents are said about convenience of the bank, which is 8 percent of the respondents and 1 of the respondents are said about some other reasons.

In this question respondents are asked about their satisfaction level with their current marketing strategy. And 11 of the 25 respondents are very satisfied, which is 44 percent of the respondents; 6 of the respondents are somewhat satisfied and which is 24 percent of the respondents; 4 of the respondents neutral and they are 16 percent of the respondents; 2 of the respondents are somewhat dissatisfied and they are 8 percent; and the rest 2 of the respondents are very dissatisfied and they are 8 percent of the respondents.

In this question respondents are asked about their satisfaction level with NCC Bank. And 14 of the 25 respondents are very satisfied, which is 56 percent of the respondents; 7 of the respondents are somewhat satisfied and which is 28 percent of the respondents; 1 of the respondents neutral and they are 4 percent of the respondents; 1 of the respondents are somewhat dissatisfied and they are 4 percent; and the rest 2 of the respondents are very dissatisfied and they are 8 percent of the respondents.

In this question respondents are asked about whether the employees of NCCBL are willing to help all the customers or not. And 18 of the 25 respondents said yes and which is 72 percent of the respondents; 5 of the respondents said no and which is 20 percent of the respondents; and 2 of the respondents are neutral which represents 8 percent of the respondents.

In this question respondents are asked about whether they are feeling safe while making transaction with or through NCC Bank. And 15 of the 25 respondents said yes, which is 60 percent of the respondents; 5 of the respondents are said no, which is 20 percent of the respondents; 5 of the respondents are neutral, which is 20 percent of the respondents.

In this question respondents are asked that whether they can understand all the statement provided by NCC bank easily. And 15 of the 25 respondents said yes, which is 60 percent of the respondents; 10 of the respondents are said no, which is 40 percent of the respondents.

In this question respondents are asked that whether NCC bank use Modern equipment in order to provide fast and quality service. And 20 of the 25 respondents said yes, which is 80 percent of the respondents; 3 of the respondents are said no, which is 12 percent of the respondents; 2 of the respondents said they do not know, which is 8 percent of the respondents.

9.2 Regression

Interpretation of R square: The model summary shows some important indicators of the explaining power of the model. The R-square value shows how much change in the dependent variable is caused by the independent variables. In this case an r-square value of .551 or 55.1% means 55.1% of the change in dependent variable is caused by the four independent variables.

Interpretation of Adjusted R-square: On the other hand, the adjusted r-square value shows how much change in the dependent variable is caused by statistically significant variables. So in this case, an adjusted r-square value of .462 or 46.2% means that 4602% of the change in dependent variable is caused by statistically significant variables. The standard error of the estimate measures the accuracy of the predictions within the regression line, which is around .899.

ANOVA

The ANOVA table shows the total variation, the explained variation and the unexplained variation (residual) due to the error. The explained variation is denoted as SSR and the unexplained variation due to residuals is denoted by SSE. The total variation (SST) is 36 and variation explained by regression (SSR) is 19.852 and variation explained by regression error SSE is 16.148. So the explaining power of the regression model is good since SSE is less than SSR. If we divide the SSR with SST, we get the value of r-square which we have already found out to be 55.1%.

Multiple Linear Regression Equation
Y (Satisfaction Level with NCC Bank) = -1.641 + 0.817 X1 (Employees willingness to help) + 0.546 X2 (Feeling safe in transaction) + 0.932 X3 (Statements are clearly understandable) +0.118 X4 (Modern equipment)

Interpretation of Unstandardized Beta Coefficients:
The Beta (β) coefficients are the estimated coefficients of population variables. Unstandardized coefficients mean that they include the y-intercept in the regression equation, which is often meaningless. Where else, standardized coefficients are used in standardized regression equation which has no y-intercept.
Employee’s willingness to help has an unstandardized beta of 0.817 which means that if other variables are held constant, then for every unit of increase in employee’s willingness to help, the wiliness to help will increase by 0.817 units.

Feeling safe in transaction has an unstandardized beta of 0.546 which means that if other variables are held constant, then for every unit of increase in safety in transaction, the safety level with NCC Bank will rise by 0.546 units.

Clearly understandable bank statement has an unstandardized beta of 0.932 which means that if other variables are held constant, then for every unit of increase in clearly understanding of statements, the satisfaction level with NCC Bank will rise by 0.932 units.

Using of modern equipment of the bank has an unstandardized beta of 0.118 which means that if other variables are held constant, then for every unit of increase of using modern equipment, the satisfaction level with NCC Bank will rise by 0.118 units.

Standardized Multiple Linear Regression Equation
Y (Satisfaction Level with NCC Bank) = 0.754+ 0.290 X1 (Employees willingness to help) + 0.239 X2 (Feeling safe in transaction) + 0.410 X3 (statements are clearly understandable) +0.317 X4 (Modern equipment).

Interpretation of Standardized Beta Coefficients:
Employee’s willingness to help has a standardized beta of 0.290 which means that if other variables are held constant, then for every unit of increase in satisfaction with employees helping willingness, the satisfaction with NCC Bank will increase by 0.290 units.

Feeling safe in transaction has a standardized beta of 0.239 which means that if other variables are held constant, then for every unit of increase in safety transaction, the satisfaction level with NCC Bank will rise by 0.239 units.

Clearly understandable statements has a standardized beta of 0.410 which means that if other variables are held constant, then for every unit of increase in clearly understandable statements, the satisfaction level with NCC Bank will rise by 0.410 units.

Modern equipment of the bank has a standardized beta of 0.317 which means that if other variables are held constant, then for every unit of increase in using modern equipment, the satisfaction level with NCC Bank will rise by 0.317 units.

9.3 Cross tab 1

For the cross tabulation analysis we have to consider two categories which are “Satisfaction level with Marketing strategy” and “Satisfaction level with NCC Bank”.

Ho= There is no relationship between Satisfaction level with current Marketing strategy and satisfaction level with NCC Bank.
H1= There is relationship between Satisfaction level with current Marketing strategy and satisfaction level with NCC Bank.

Chi square (2) = 57.630; P= .00
All this substantial differences were significant because P value is less than .05
So, we have to reject the Ho hypothesis.

Cross tabs 2

For the cross tabulation analysis we have to consider two categories which are “Modern equipment” and “Satisfaction level with NCC Bank”.

Ho= There is no relationship between Modern equipment and satisfaction level with NCC Bank.
H1= There is relationship between Modern equipment and satisfaction level with NCC Bank.

Chi square (2) = 18.214; P= .20
All this substantial differences were significant because P value was smaller than .05.
So, we have to reject the Ho hypothesis.

Cross tabs 3

For the cross tabulation analysis we have to consider two categories which are “Preference of NCCBL” and “Satisfaction level with NCC Bank”.

Ho= There is no relationship between Preference of NCCBL and satisfaction level with NCC Bank.
H1= There is relationship between Preference of NCCBL and satisfaction level with NCC Bank.

Chi square (2) = 28.093; P= .005
All this substantial differences were significant because P value was smaller than .05.
So, we have to reject the Ho hypothesis.

9.4 Findings

In the frequency table, it shows that most of the clients of NCC Bank are from business and service category. The most important reason for choosing NCC Bank is its go service quality and for goodwill as well. Most of the respondents come to know about NCC Bank through WOM (Word of Mouth). 24% of the respondents are satisfied with the current marketing strategy which is followed by the NCC Bank, so the Bank should take some steps to improve its strategy. On the other hand 28% of the respondents are somewhat satisfied while dealing with NCC bank. So NCC bank needs to be more concentrate while dealing with customer. Though 72% respondents thinks that employees of NCC bank are always helpful but still 20% respondents are unhappy. So they need to focus more in terms of what customers want. And in both the case of feeing safe while making transaction and understanding statements easily 60% respondents are happy. So it plays a motive role for NCC bank. And almost 80% people are concern about the equipment they use, which gives a good indication in the market place.

In the regression table, it shows that there is significant relation between the satisfactions with NCC Bank and its current quality service. So, the null hypothesis should be rejected. As a result, the alternative hypothesis- Customer of NCC Bank are satisfied with the current quality of service and products they are offering.

In the cross tabs, there is no relationship between modern equipment and satisfaction with NCC Bank Ltd. But there is relationship between current strategy of marketing and satisfaction with NCC Bank, and improvement need or not in marketing strategies and satisfaction with NCC Bank.

At the end it is to be said that NCC Bank needs some improvement in its marketing strategies though it is doing well with its current quality service and it has positive impact on their customer.

9.5 RECOMMENDATION

As per earnest observation some suggestions for the improvement of the situation are given below:

To attract more clients NCCBL has to create a new marketing strategy, which will increase the total export Import business.
Effective and efficient initiatives are necessary to recover the default loans.
Attractive incentive package for the exporter will help to increase the Export and accordingly it will diminish the balance of payment gap of NCCBL.
Different types of training very much required for the bank officials.
Computerized banking system and latest communication device are the most important elements for this century. So, for the sound and stable Banking operation, NCCIBL has no alternative but the modernization.
Foreign exchange operations of other banks are more dynamic and less time consuming. NCCBL should take some initiative to compete with those Banks.
Bank can provide foreign market report, which will enable the exporter to evaluate the demand for their products in foreign countries.
The Bank must be to introduce On Line Banking between all branches.
Number of branches is very limited of this Bank. They have to increase the number of branches at various key points of the country

9.6 Conclusion

Today’s business is very competitive and complex. To survive in the relate sector the organization need competitive people and has to take some effective policy. Every country must have a plan for important role in economic activities. Bangladesh is no exception of that. Commercial Banks’ financial development and economic developments are closely related. That’s why the private commercial banks; are playing significant role in this regard.
The National credit and Commerce Bank Limited (NCCBL) is one of the best banks in respect of service, profitability and strength among the private commercial banks; in our country and also to play a catalyst role in the formation of capital market. National Credit and commerce Bank Limited bears a unique history of its own. The bank has set up a new standard in financing in the Industrial, Trade and Foreign Exchange Business. Its various deposit and credit products have also attracted the clients both corporate and individuals who feel comfort in doing business with the bank.
The National Credit and commerce Bank Limited (NCCBL) is now been called a modern bank that undertakes all its operations at an international standard. Over the years, NCCBL has built itself as one of the pillars of Bangladesh’s financial sector and is playing a pivotal role in extending the role of the private sector of the economy.