Internship report on Customers satisfaction towards IFIC BankLtd

Executive Summary : Banks mobilize money from the public in the form of deposits as well as borrow funds from the banking system with a view to providing credit in the economy. Besides these core activities, banks are performing other roles in the economy. History show that a modern bank is offering a wide array of financial services and the bank’s services menu is growing rapidly. This report is prepared on the basis of three months practical experience at International Finance Investment and commerce Bank Ltd. This internship report helped me a lot to learn about the practical situation of a financial institution and to implement my theoretical knowledge in practical and realistic atmosphere. The broad objective of this report is findings an analysis of customer satisfaction toward IFIC Bank Ltd. It is descriptive research in nature. Most of the data are collected from both primary and secondary sources. Primary sources are- face to face conversation with the bank offices and stuff of IFIC Bank Ltd. informal conversation with clients. Secondary sources are – Brochures of IFIC Bank Ltd. Annul report and different circular sent by IFIC Bank Ltd. Official website. IFIC Bank of Bangladesh Limited is one of the third-generation commercial Banks in the country with commendable operating performance. Directed by the mission to provide prompt and efficient services to clients and successfully celebrated its twelve years operation. It provides a wide range of commercial banking services to its customers. For meeting the demands of customers of its 21^st century society, the bank provides all types of commercial banking product. While studying this report, some major points about this bank were found. IFIC Bank should computerize all the section of the bank .Because communicating with word of mouth is killing the time. Most of the customers are satisfied with the location of the branches of the bank. IFIC Bank is reputed bank among its customer because of its price, service and banking process is satisfactory. IFIC Bank should increase their promotional activities and should increase the ATM booth numbers.

1.1 Introduction:

Banks are financial-service firms, producing and selling professional management of the public’s funds as well as performing many other roles in the economy. Banks are among the most important financial institutions in the economy. When businesses and consumers need financial information and financial planning, they turn most frequently for advice and council to the Banker. Banks are those financial institutions that offer the widest range of financial services – especially credit, savings, and payment services – and perform the widest range of financial functions of any business firm in the economy. In other words, Banks are financial service firm, producing and selling professional management of the public’s funds as well as performing many other roles in the economy. The banking process and its area are increasing faster and getting wider day-by-day to understand banking procedure has become essential for every individual.

1.2. Background of the study:

Modern banking system plays a vital role for a nation’s economic development. Over the last few years the banking world has been undergoing a lot of changes due to deregulation, technological innovations, globalization etc. These changes also made revolutionary changes of a country’s economy. Present world is changing rapidly to face the challenge of competitive free market economy. It is well recognized that there is an urgent need for better-qualified management and better-trained staff in the dynamic global financial market. Bangladesh is no exceptions of this trend. Banking Sector in Bangladesh is facing challenges from different angles though its prospect is bright in the future. International Finance Investment and Commerce Bank Limited (IFIC Bank) is a banking company incorporated in the People’s Republic of Bangladesh with limited liability. It was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions abroad. The Government held 49 per cent shares and the rest 51 per cents were held by the sponsors and general public. In 1983 when the Government allowed banks in the private sector, IFIC was converted into a full-fledged commercial bank. The Government of the People’s Republic of Bangladesh now holds 35% of the share capital of the Bank. Leading industrialists of the country having vast experience in the field of trade and commerce own 34% of the share capital and the rest is held by the general public. This paper is titled “An Analysis of Customers Satisfaction towards IFIC Bank Ltd.” originated from the fulfillment of the BBA program. For the internship program, each student is attached with an organization. My internship was at The IFIC Bank Ltd.” Progati Sarani Branch, Dhaka.

1.3. Justification of the study:

The economy of our country has a lot left to be desired and there are lots of scopes for massive improvement. In an economy like this, banking sector can play a vital role to improve the overall social-economic conditions. As our country is an under develop country, the banks play the role of an intermediary and can mobilize the excess fund of surplus sectors to provide necessary finance, to those sectors, which are needed to promote the sound development of the country. The banks provide different types of product and services to its counter parts, like general banking services or finance or investing which results transaction of currency. To do this they also need capital, assets and other factors which effects directly in the bank performance. This report will help to understand the general banking of IFIC bank. As a result, we can have a clear idea about general banking.

1.4. Objectives of the study:

• To describe various products & services of IFIC Bank Ltd.
• To measure customers’ satisfaction  towards IFIC Bank Limited
• To identify the problems related to customer’s satisfaction of IFIC Bank Limited, Progai Sarani Branch, Uttar Badda, Dhaka.
• To make some recommendations to solve the problems.

1.5. Scope of the study:

The scope of this report is limited to the descriptions of customer satisfaction of IFIC Bank Ltd. Progati Sarani branch with reference to overall condition of customer satisfaction. The customs satisfaction availability, future possibility etc have been discussed. Some suggestions to improve the existing customs satisfaction have also been made.

1.6. Methodology of the study:

Sources of Data Collection

The study was conducted based on both the primary and secondary sources of information.

Primary data:

• Officers
• Customers of IFIC Bank Ltd.

Secondary data         

• Data from the company’s documents
• Previous reports of the bank.
• Relevant IFIC Bank’s papers and published documents
• Annual Report of IFIC Bank Ltd.
• Internet.

Research Design

This is a Descriptive type of research. Here, the SERVQUAL Scale for measuring customers’ satisfaction is used.

Population

The questionnaire was distributed to those customers who have taken any kind of services from this bank, whether they are account holder of this bank or not. Progati Sarani Branch total population is 700. I think that population size is small that is why I had taken 50 sample size.

Survey method

A detailed questionnaire is designed for the survey. Data is collected both from secondary source and primary source.

Sample size

For conducting this research the total sample size was 50.

Sampling technique

Convenience sampling method is used.

Statistical Tool

I took the use of descriptive statistics. To analyze the data some statistical tools are used like Standard Deviation, Mean, Variance. To formulate the data and to get Standard deviation, Mean, Variance, SPSS software is used

1.7. Limitations of the study:

There are some Limitations of the reports which are given below.

• Lack of comprehension of the respondents was the major problem that created many confusions regarding verification of conceptual question.
• Due to time limitation many aspects could not be discussed in the present study.
• Every organization has their own secrecy that is not revealed to others. While collecting data on IFIC Bank Ltd. it is obvious that personnel would not disclose enough information for the sake of confidentiality of the organization.
• The findings of the survey would be based on customer responses in different IFIC Bank’s different branches. The result may not reflect the same for the other branches.

2. Overview of the IFIC Bank:

International Finance Investment and Commerce Bank Limited (IFIC Bank) is a banking company incorporated in the People’s Republic of Bangladesh with limited liability. It was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions abroad. The Government held 49 per cent shares and the rest 51 per cent were held by the sponsors and general public, hi 1983 when the Government allowed banks in the private sector, IFIC was converted into a full-fledged commercial bank. The Government of the People’s Republic of Bangladesh now holds 35% of the share capital of the Bank. Leading industrialists of the country having vast experience in the field of trade and commerce own 34% of the share capital and the rest is held by the general public.

2.1. Company Background:

International Finance Investment and Commerce (IFIC) Bank Limited is a banking company incorporated in the People’s Republic of Bangladesh with limited liability. It was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions abroad. The Government denationalizes two banks, which were, then fully Government-owned. While in all these Banks Government is holding nominal 5 Percent shares, an exception was made in the case of the Bank. It retained 40 percent shares of the bank. The decision by the Government to retain 40 percent shares in IFIC Bank was in pursuance of the original objectives, namely, promotion of the participation of Government and private sponsors to establish joint venture Banks, financial companies, branches and affiliates abroad. The sponsors hold ownership of the Bank in the private sector and Government of the People’s Republic of Bangladesh. Sponsors and individuals now own about 62 percent of the share capital and the Government owns a little more than 38 percent of the shares. The Bank started with an Authorized capital of Tk. 100 million in 1983. Paid up capital at that time stood at Tk. 71.50 million only. Over the last 19 years, the authorized and paid-up capital has increased substantially. The paid capital stood at Tk. 1.341 million as on December 31, 2010 (Annual Report, 2010). The Bank has built up a strong reserve base over the years. In last 19 years its Reserves and surplus have increased overly. As against Tk. 21.20 million only in 1983 Reserve and surplus increased to Tk. 733.30 million in 2008. This consistent policy of building up Reserves has enabled the Bank to maintain a better adequacy ratio as compared to others. Recently the bank is able to change its short term financing from “B” to “A”. With the active support and guidance from the Government, the bank has been showing a steady and improved performance. In its fifteen years operation, the bank has earned the status of leading in terms of both business and goodwill. Starting modest deposit of only Tk. 863.40 million in 1983 the Bank has closed its business with Tk. 36.092.17 million of deposit as on December 31, 2010.

The Bank covers by its activities all the important trading and commercial centers of the country. As on in 20010 it has 99 branches within Bangladesh. In 1983, IFIC Bank set up a joint venture bank names Bank of Maldives Limited (BML). It is the first bank of Maldives. In 1992, as per contract, IFIC Bank handed over the management of BML to Maldives. To facilitate remittance by Bangladeshi in Omen, IFIC bank set up a money exchange company as a joint venture, named Oman-Bangladesh Exchange. IFIC Bank opened its first overseas branch in Karachi, Pakistan. It opened its second branch at Lahore in Pakistan. In December 1993, the Bank got permission to establish a joint venture bank with 50% equity capital in Nepal. The bank known as, Nepal Bangladesh Ltd. came into operation in June 1994.

2.2. Vision of IFIC Bank:

IFIC Bank wants to be the leader among banks in Bangladesh and make their indelible mark as an active partner in regional banking operating beyond the national boundary. In an intensely competitive and complex financial and business environment, we particularly focus on growth and profitability of all concerned.
2.3. Mission of the IFIC Bank:

Our Mission is to provide service to our clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make our position unique in giving quality service to all institutions and individuals that we care for. We are committed to the welfare and economic prosperity of the people and the community, for we drive from them our inspiration and drive for onward progress to prosperity. We want to be the leader among banks in Bangladesh and make our indelible mark as an active partner in regional banking operating beyond the national boundary. In an intensely competitive and complex financial and business environment, we particularly focus on growth and profitability of all concerned.

2.4. Goal of IFIC Bank:

Goal of the IFIC Bank is, to maximize the interest of all concerned. IFIC Bank wants to be the absolute market leader in the number of loans given to small and medium sized enterprises throughout Bangladesh. It will be a world-class organization in terms of service quality and establishing relationships that help is customers to develop and grow successfully. It will be the Bank of choice both for its employees and its customers, the model bank in this pan of the word

2.5.1. Ownership Structure:

The sponsors hold ownership of the Bank in the private sector and Government of the People’s Republic of Bangladesh. Sponsors and individuals now own about 62 percent of the share capital and the Government owns a little more than 38 percent of the shares.

2.5. Organogram:

2.5.2. Board of Director:

2.6. Departments of IFIC Bank Ltd:

There are mainly three departments in International Finance Investment & Commerce Bank Ltd. They are- General banking, Foreign exchange and Loans & Advances.

2.6. 1. General Banking:

As an intern, I was assigned at IFIC Bank Limited Federation Branch. On the very first day I had to learn how to issue a Cheque book. General Banking is the starting point and main function of all the banking operations it is the department which provides day-to-day service to the customers. Though in general banking mainly we open an account for the party, issue a Cheque book, transfer the money, TT, Pay Order, give a statement or Bank Solvency Certificate. Banks main objective is to collect deposit form the clients and invest into different sectors (Pagoso, 1995). General Banking department maintaining the following functions:

►2.6.1.1. Accounts Opening Section:

Mainly bank open an account for its customer, where people can transact money through their account. They can deposit money or can withdraw money from their account Also they can send money from one account to another account Basically bank’s revenue or profit comes from opening an account to their customers. There are three types of account – Savings Account, Current Account and Fixed deposit account in Operative. Other one is non-operative Account and monthly deposit scheme. In IFIC bank Federation branch there are two employees are responsible for account opening. Current, savings and fixed deposit receipt account may be opened at any time but pension savings scheme and other monthly deposit scheme s are opened from Ito 10 of any month

►2.6.1.2.Cash Section:

Cash department is the most important and most vital section of an entire Bank. This department deals with cash transactions from its customers. Basically they collect money or give money to their customer according to the client’s needs and at the end of the day the rest of the money goes to the cash vault through the cash officer. And on the next day the transaction starts with that amount. This department’s main functions are cash payment, Cheque receipt and Cheque cancellation, cash deposit and provide stamps in case of encashment of deposit scheme and pay order.  In IFIC bank Federation branch there are three persons maintaining direct transaction with the client and one is cash in charge who supervise everything.

►2.6.1.3. Local Remittance:

One of bank’s important works is sending money from one customer, from one place to another place. This service is an important part of transaction system. In this service system, people, especially businessman can transfer funds from one place to another place very easily. There is three easy way to remitting money from one place to another place these are Demand Draft (DD), Pay Order (PO), Telegraphic Transfer (TT). There is one employee in this section in IFIC bank Federation branch to maintain such activities.

►2.6.1.4. Clearing Section:

In this department banks generally not only receives their own Banks Cheque but also they receive Cheque from different banks from different accounts. After receiving Cheque it is necessary to endorse it and cross it on that Cheque. Clearing of Cheque is done through the clearing house by the Bangladesh Bank. There is one employee is assigned the clearing activities in this branch.

►2.6.1.5. Accounts Section:

This is actually an independent and very unique department, unique in this sense that, it works as a combination of all the departments of the entire branch. This section is fully computerized. So the conventional large ledger and journal books are not kept like the some nationalized traditional bank. It receives the vouchers from all departments and prepares the subsidiaries and maintains accounts.

►2.6.1.6. Establishment Section:

This section deals with employee’s salary, all types of internal expenses such as purchasing of stationary, equipment, machinery, payment of labor cost and convene. In case of leave of absence employee collects prescribed form from this section.

 2.6.2. Foreign Exchange:

Money is a common denominator in which the relatives’ values of goods and services can be expressed. When a person makes a payment to another person living in the same country, he uses any of the different forms of money currency in the country. For an example; a person living in Dhaka can make a payment to another in Chittagong in Taka coin or currency notes or by Cheque on any bank of the country. Such payments do not present any problems except those of transferring money from one place to another. But things are different when the debtor and the creditor live in the different countries.

When a trader, from Dhaka imports from London merchant, the payment involves certain complications. The businessman from Dhaka can pay in taka, but Taka is of no use to London exporter. So there is a need of foreign exchange mechanism. The banks that act as a third party facilitate the transactions among the different Parties involved in foreign trade. Bank has some credit instruments, which effects the foreign transaction. These are Draft, mail transfer, telegraphic Transfer and LC.

2.6.3. Loans and Advances:

“Loan and advances” it is a very similar word for the bank. It contents a huge meaning. A bank’s main earning source is credit If bank’s credit management is not good then the bank will never ever achieve its proper goals. Question may arise what are the proper goals for the bank? The proper goals for the banks are profit maximization and shareholder’s wealth maximization. The fundamental nature of credit is that an element of trust exists between buyer and seller whether of good or money. The main use of bank fund is to collect money from surplus unit and lend it to deficit economic unit

7. Branches of IFIC Bank Ltd.:

The Bank covers by its activities all the important trading and commercial centers of the country. As on in 2010 it had 99 branches within Bangladesh.

Branches of IFIC Bank

2.8. Financial Highlights:

2.9. Different products of IFIC Bank:

The bank is managed by a team of professional executives and officials having profound banking knowledge and experience in different sectors management and operation of banking. During the short span of time IFIC so far introduced a good number of attractive deposit products to broaden the resources base and also investment products to deploy the deposit products. IFIC always try to introduce a wide verity of attractive deposit, investment and services for suiting taste and requirement of the client.

2.9.1. Product:

Bank means mobilizing fund from surplus unit and deployment of fund for deficit unit IFIC mobilize its fund from surplus unit through different types of deposit schemes and deployment this fund for deficit unit through various investment schemes. So the main products of IFIC are different kinds of deposits and investment schemes.

I.     Corporate Banking:

• Working Capital Finance
• Project Finance
• Term Finance
• Trade Finance
• Lease Finance
• Syndication Finance.

II.      Retail Banking:

• Consumer Finance
• Deposit Product
• Card
• NRB Account
• Student File
• SMS Banking.

   III.     SME Banking:

•  Easy Commercial Loan
• Retailers Loan
• Transport Loan
• CommercialHouseBuilding Loan
• Possession Right Loan
• Contractor’s Loan
• Bidder’s Loan
• Working Capital Loan
• Project Loan
• Trade Finance
• Muldhan
• Women Entrepreneur’s Loan

IV.      Agriculture Credit:

• Krishi Saronjam Rin
• Shech Saronjam Rin
• Poshupokki & Motsho Khamar Rin
• Phalphashali Rin

I. Corporate Banking:

FIC Bank is providing a wide range of financial services, offering specialist advice and products to corporate clients to meet diverse demands of changing market scenario. We have expertise to customize products & services to meet specific requirements of our clients. We are committed to serve our customer with extensive branch net work all over the country to expedite our client’s business growth. We facilitate your business to face the challenges and realize opportunities, now and in the future. Our main focus is relationship based banking and understanding corporate & institutional business environments. Our experienced Relationship Managers & their team can respond to and anticipate your needs and give you competitive business advantages. Products and services for commercial and business customers include: Working Capital Finance, Project Finance, Term Finance, Trade Finance, Lease Finance, Syndication Loan etc.

II. Retail Banking:

Retail Banking is mass- banking facility for individual customers to avail banking services directly from our wide branch net work all over the country. We provide one-stop financial services to all individual customers through our innovative products & services to cater their need. With a view to provide faster and more convenient centralized online banking services, most of our branches have been brought under the real time online banking system. IFIC Bank offers a wide variety of deposit products, loan product & value added services to suit your banking requirements. Products and services for individual customer include: Consumer Finance, Deposit Product, Card, NRB Account, Student File, SMS Banking etc.

Ill SME Banking:

The growth of Small and Medium enterprises (SMEs) in terms of size and number has multiple effects on the national economy, specifically on employment generation, GDP growth, and poverty alleviation in Bangladesh. At present, Small & Medium Enterprise sector is playing a vital role in creation of new generation entrepreneurs and ‘Entrepreneurs Culture’ in the country. Experience shows that borrowers of small enterprise sector prefers collateral free loan since normally they cannot offer high value security to cover the exposure.

To facilitate SME sector of the country, IFIC Bank provides collateral free credit facilities to the small & medium entrepreneurs across the country whose access to traditional credit facilities are very limited. We are offering 15 different products for selected target groups, such as – Easy Commercial Loan, Retailers Loan, Muldhan Loan, Women Entrepreneur’s Loan (Protyasha), Transport Loan, Working Capital Loan, Project Loan, letter of Contractor’s Loan, Bidder’s Loan, Working Capital Loan, Project Loan, Letter of Guarantee, Letter of Credit Loan against Imported Merchandize (LIM), Loan against Trust Receipt etc.

IV. Agriculture Credit:

In order to achieve desired growth in agriculture sector of the country, we are committed to increase our present loan portfolio in agricultural sector. IFIC Bank is offering Agriculture Loan products namely i) Krishi Saronjam Rin – for Agriculture Equipments ii) Shech Saronjam Rin – for irrigation equipments iii) Poshupokkhi & Motsho Khamar Rin – for Live Stock & Fish Culture & iv) Phalphasali Rin – for Fruit Orchard for individuals & group at micro level.

2.9.2. Different Prices for Products and services of IFIC Bank Ltd.:

Deposits Rate                                                                             Effective Date: 15.06.2010

Deposite Rate (Continued)

4.00%iv. Tk. 50.00 crore and above but less than Tk. 100.00 crore

2.00%v. Tk. 100.00 crore and above2.00%Fixed/Term Deposits i. 3 Months & above8.25%

9.00%03.ii. 6 Months & above8.25%

9.00%iii. 1 Year & above8.00%

8.75%iv. 2 Years & above but less than 3 years v. 3 Years & above

Landing Rate                                                                             Effective Date: 27.06.2010

(Working Capital)13.00% (MAX.)05.Small Scale Industrial Loan

(Working Capital)14.00%(mid-rate, w.e.f 10.08.09)06.Exports7.00% (MAX.)07.Commercial Lending13.00% (MAX.)08.Housing Loan13.00% (MAX.)09.Consumer Credit Scheme13.00%, 15.00, 15.50 &  16.5010.Credit Card2% (Per month)11.Lending to non-Banking Financial

Institutions (NBFIs)13.00% (MAX.)12.Others14.75%

2.9.3. Places:

Delivering product elements to customer involves decisions on the place and time of delivery, as well as on the methods and channels used. In the IFIC Bank-, delivery of service involves physical & electronic distribution depending on the nature of the service being provided. , IFIC bank Main Strength is its location-based strategy. The 99 branches of IFIC are divided into five different regions, which are:

ü Dhaka Division, comprising 47 branches.

ü Chittagong Division, comprising 19 branches.

ü Khulna Division, comprising 10 branches.

ü Sylhet Division, comprising 8 branches.

ü Rajshahi Division, comprising 15 branches,

2.9.4 Promotional Activities:

Advertising platforms:

ü  Print & broadcast ads

ü  Brochures & booklets

ü  Directories

ü  Symbols & Logos

ü  Billboards

Sales promotion:

ü  Premiums & gifts

ü  Fairs & trade shows

ü  Rebates

ü  Low-interest financing

ü  Trade in allowances

Publicity & Public relation:

ü  Press kits

ü  Seminars

ü  Annual reports

ü  Charitable donations

ü  Company magazine

ü  Publications

 2.9.5. Physical Evidences of IFIC Bank Ltd:

The appearance of building, landscaping, vehicles, interior furnishing, equipment, staff members, signs, printed materials, and other than visible cues all provide tangible evidence of the banks service quality. The IFIC Bank manages its physical evidence very carefully, as it can have a profound impact on customers’ impression. They have:

ü Well decorated office space…..

ü Prayer time & space

ü Necessary furniture & electric equipment……..

ü Seating arrangement for customers

ü Car parking facility…..

ü Printed materials

ü Skilled manpower etc…..

2.9.6. Process:

ü  The IFIC Bank creates and delivers product elements based on customer requirement.

ü  They design and implementation by effective process.

ü  The IFIC Bank designs its process in such a way that lead to fast, dynamic and very effective service delivery and result in satisfied customers.

ü  As the process of the bank is very well designed, it helps a lot to the front line staffs to do their jobs well, resulting in high productivity and decrease likelihood of service failure.

ü  In the bank most of the directions comes from head office but there are different culture in different branch based on location but everywhere a specific process is highly maintained.

2.9.7. People:

ü  Banking service usually depends on direct interaction between customers and a firm’s employees.

ü  The IFIC Bank maintains a good relationship with its customers. Service quality is often assessed based on customer’s interaction with front line staff

ü  The IFIC Bank Ltd. Devotes significant effort to recruiting, training, and motivating these employees.

ü  They placed a separate institute for making the staffs up to the bank.

2.10. Company SWOT Analysis:

Strengths:

1. The top management of the IFIC bank ltd who are the key personal involved from the very beginning of the banks operation, has contributed heavily towards the growth and development of the bank.
2. The branches of IFIC bank are situated in the important commercial areas of the country.
3. Relationship with existing clients is very strong. IFIC bank have developed professional relationship and customer orientation is highly acclaimed.
4. Strong network through out of the country and provide quality of service to every level of customers.
   1. From beginning IFIC bank tries to insure their works surrounding modern equipment and facilities. Online banking is one of the main attractions, which gave the bank a better position among privet bank.
   2. IFIC bank provides diversified products lines to its customer, which attracts the customers to render the services offered by the bank.

Weakness:

1. Advertising and promotion is one of the week points of IFIC bank ltd. There is a marketing department but this department has very low exposure and does not have any effective plane for aggressive marketing activities.
2. Most of the time the management hire employee for high post from other banks instead of promoting the banks employees. This hampers the motivation of the employee.
3. Every branches of the bank are heavily depends on head office for decision making.

Opportunity:

1. IFIC bank can recruit experienced, efficient and knowledgeable workforce as it offers attractive salary packages and good working environment
2. Consumer credit gives more opportunities for the bank to expand its market share.
3. IFIC bank can grow their market share by increasing demand of customer finance.
   1. Relationship management can offer high performance of the banking operation.

Threats:

1. Rival bank can easily copy the product offering of IFIC bank. Therefore the bank is in continuous of product innovation to gain competitive advantage over its competitors.
2. Similar type of retail banking products.
3. Bangladesh Bank exercises strict control credit activities in local banks. Sometimes the restriction imposed, can create barrier in the normal operations and policies of the bank.
4. Sometimes the bank changes their pricing policies, in due time customers may not aware about it

 Problems Identified:

ü  IFIC Bank does not provide timely service to its customers. Most of the customers said that they had to wait in the branches before they got the services.

ü  IFIC Bank does not properly keeps customers informed about when services will be performed.

ü  The behavior of the employees of the IFIC Bank does not inspire confidence in customers.

ü  A significant no. of customers does not feel safe in their transactions with IFIC Bank.

ü  A significant no. of customers mentioned that IFIC Bank does not give them individual attention.

ü  Some respondents indicated that employees of the bank are not continuously courteous with them.

ü  IFIC Bank Ltd. does not have modern and Hi-Tech Equipment in its Branches.

ü  The behavior of the staffs of the bank is not in a proper satisfying level.

ü  Most of the respondents are highly dissatisfied with cheque book/delivery process.

ü  Customers are to wait a long time before they get their services.

ü  60% of total respondents did not recommend IFIC Bank to their relatives, friends or colleagues. That indicates a poor relationship status between customers and the bank.

Recommendations:

ü  Employee of IFIC Bank Ltd. Need to be more efficient so that they can handle customers quickly. The bank also needs to increase some front desk officer in its branches.

ü  To inspire customers and increase their confidence the behavior of employees of IFIC Bank Ltd. should be more effective.

ü  IFIC Bank Ltd.  Should give more individual attention to their customers. Because customers think that they don’t get enough individual attention.

ü  To inspire and encourage the customers the bank should use hi-tech equipments and enhance in to modern looking.

ü  IFIC Bank Ltd.  should be more flexible in case of cheque book /delivery process.

ü  IFIC Bank Ltd.  should offers more facilities to the customers such as credit cards, visa cards, ATM booths etc.

ü  To retain their customers and make them loyal IFIC Bank Ltd. should give some exclusive offer to its customers. It can be different types of loan like car loan, study loan etc and lower interest rate for loan or increase the interest rate for deposits.

By considering the above recommendations the IFIC Bank Ltd.  can satisfy its customers with effectively and efficiency and makes them loyal customers of IFIC Bank Ltd. .

Conclusion:

IFIC Bank has started its banking activities much earlier comparing to the other banks and due to that, it has gained a lot of banking experience, which has been proved very worthy for them. But that is a part of their job because our countries economic condition is yet to progress a lot. Time to time they are offering different attractive packages of program for customer like different types of account such as Current Deposit Account, Savings Accounting and Fixed Deposit Account etc from the given charts and tables we can see the various range of their deposits and other offers, which remains on changing time to time. They also have adequate planning for compensation in various sectors like-they have a wide range of bonus- branch bonus, sales bonus as the percentage of individual performance etc. They also have some special incentives for specified performance, which is encouraging for the employees. But at the same time they have some drawbacks like- they do focus mainly on financial incentives and benefits and not on non-financial ones. But it is not wise on their part. So they need to consider the non-financial incentives a little bit seriously for the customers as well as for the employees also. They also need to increase the range of attractive offers with the increasing business. Another thing is, according to my perception, they require a much prompt guideline to operate their activities.