Management Process to Increase Quality in Customer Service

Executive Summary:

The purpose of this working report is to explain what I did and learned during my internship period of around 3 months starting from February 16, 2009 to May 3, 2009 with the Mutual Trust Bank Ltd. The report is a requirement for the partial fulfillment of Internship Program.

The report is about “DEVELOPING A BETTER MANAGEMENT PROCESS TO INCREASE EFFICIENCY IN QUALITY OF CUSTOMER SERVICE AND OPERATION OF UTTUARA BRANCH MUTUAL TRUST BANK LTD”.

The report has three parts front matter is introduction, overview of banking industry, overview of MTBL, objective, corporate information and hierarchy of MTBL. The middle matter is about the bank an over all situation and an analysis on INCREASE EFFICIENCY IN QUALITY OF CUSTOMER SERVICE AND OPERATION. Finally the back matter is followed by problem Findings, recommendations, conclusion & Bibliography

Any corporation, in order to stay in business, has to be efficient and effective. The same goes for MTBL. In order to be efficient, MTBL has to consider its quality, time, and cost factors. MTBL has to see how fast it can provide better service than other banks at a lower cost. MTBL also has to be effective to make current clients happy and potential clients attracted.

To conclude, it can be said that MTBL has big scopes of improving its services and thus making it more efficient and effective. The last part of the report comes up with several recommendations that would help MTBL achieves this.

Introduction:

Mutual Trust Bank Ltd. started its operation in 1999. This bank has been able to grab the customer’s attention by continuously improving of its financial strength by providing reliable and unique services. The bank carries out its banking activities through 36 branches and 5 SME Service Centres operating in the country. The bank offers the most up-to date and unique banking services through opening of various types of deposit and accounts. Within a short period of time the bank has earned a good reputation among the people of this country.

Overview of Banking Industry

Banking has been changing rapidly worldwide. Skill of manpower, profitability, Quality of assets, automation etc., will help these banks deliver service to the customers. Close relationship between banks’ customers and employees results in new product designs. Multinational banks had introduced credit cards. Customers of different segments have accepted this product. Online banking and SMS banking have been introduced by almost all commercial banks to satisfy their customers by providing the state of the art technology.

CHANGE in organizational structure is needed to retain or improve competitiveness in the marketplace. Internal or external indicators can justify the changes.

While competition has increased many, banks are introducing new products by regularly updating automation to satisfy the customers. For SME loans, emphasis is given so that women entrepreneurs get priority. All these are meant to provide banking services to more and more people the country. For banks, to introduce new products for their customers requires investment in research and development.

Overview of MTBL:

Bangladesh economy has been experiencing a rapid growth since the ’90s. Urbanization and lifestyle changes concurrent with the economic development created a demand for banking products and services to support the new initiatives as well as to make channel consumer investments in a profitable manner. A group of highly acclaimed businessmen of the country grouped together to respond to this need and established Mutual Trust Bank Limited in the year 1999.

The Bank was incorporated as a public limited company under the Companies Act. 1994. The Bank started its commercial operation on October 24, 1999 with an authorized capital of Tk.1000.00 million and paid up capital of Tk. 200.00 million. The authorized capital increased to Tk. 3800.00 million in 2007. The paid up capital of the Bank stood at Tk.997.92 million as on 31 December 2007. The Shareholders’ Equity (capital and reserves) of the Bank as on 31 December 2007 stood at Tk.1925.53 million, including the sponsor’s capital of Tk.442.42 million.

Mutual Trust Bank has 36 branches and 5 SME Service Centres including several ATM booths and an offshore Banking Outlet across the country and a wide network of correspondents all over the world. The Bank has plans to open more branches in the current fiscal year to expand the network. The Bank offers the full range of banking and investment services for personal and corporate customers, backed by the latest technology and a team of highly motivated officers and staff.

In its effort to provide you can bank on us, the Bank has launched fully automated Phone Banking service, joined a countrywide-shared ATM network and has introduced a co-branded credit card. A process is also underway to provide e-business facility to the bank’s clientele through Online and Home Banking solutions.

In the word of consumerism, the business organizations of the world strive for the consumers’ satisfaction as a number one business strategy what ever may the product of the organization, either service or non-service. Service is the product of the Bank building. The guard at the door is the first person represents the Bank; receive a customer with wishes hi smiling face.

At present, Mutual Trust Bank Ltd. is competing for the leading position among the local private commercial banks. A better management process at MTBL can increase the level of customer service and the efficiency of operation. As a result, MTBL will be able to improve their competitive advantages over its rival. Through my internship at MTBL of Uttara branch I had opportunity to observe the internal management process and identify issues related to customer service operation.

Management processes need to be redesigned and reorganized to ensure quality services for the customer.

i) The Commitments

MUTUAL TRUST BANK values its customers. Each customer’s expectations of superior services and products are bank’s prime moves. Mutual Trust Bank has reached its approximately 10 years in banking. On this joyous occasion, Mutual Trust Bank highlighted its core values. These are –

Focus Knowledge Goal

Loyalty Experience Care

Punctuality Sincerity Trust

Foresight.

Objectives of the Bank

i) Vision

To be the bank of first choice by creating exceptional value for our clients, investors and employees alike. Mutual Trust Bank Limited goal is to dedicate their services to the nation through active financial participation in all segments of economy, small industries, commerce and trade and service sector.

ii) Mission

We aspire to be most admired financial institution in the country recognized as a dynamic, innovative and client focused company, that offers overall array of products and services geared for excellence and create an impressive economic value.

To build Mutual Trust Bank Limited in to an efficient, market driven, customer focused institution with good corporate governance structure.

iii) SLOGAN:

“YOU CAN BANK ON US”

Corporate Information

Organizational culture means the common perception held by the organization’s members; a system of shared meaning. To practice corporate culture every employee has to be open minded each other and as well as customers. If any employee is struggling for his overloaded task then other should give helping hands on him. But here what is happening in the MTBL Uttara branch, they are transferring employees if they are not serving well. I think it’s a negative impact on employees because it doesn’t grow employee’s job involvement and job satisfaction.

MTBL- How to provide better service

Introduction

Bank is a service oriented organization. There is nothing without service in a bank. Growth of a bank depends upon the quality of service provided by the bank. So their target should be to ensure quality service for customers. The quality service depends on superior management process. If the management process is not well organized or doesn’t work effectively and efficiently then customers can not be benefitted from the quality services from it. Quality banking service from the quality management process is required in today’s competitive market. That is why better management process is one of the most important criteria which are required to develop for MTBL of Uttara branch.

The bank of Uttara Branch is providing so many opportunities to their customers. Customers are encouraged to open an account here because they are getting very

Well-services from the employees of Uttara branch. Customers can get tele-servicing to stay at their home. Whenever some one wants to know any kind of information about their accounts related, or wants to know the balance of his or account he or she can get this service easily over phone.

All the employees are well-behaved and highly educated persons. They provided their best services to customers, because they believe that customers are their main assets. The guard at the door is the first person represents the Bank; receive a customer with wishes hi smiling face. The bank offers the most up-to date and unique banking services through opening of various types of deposit and accounts. Within a short period of time the bank has earned a good reputation among the people of this country.

The whole management of MTBL are solely directed to maintain a culture so that it can increase the efficiency & better quality for the customer service. It has quickly adapted to world class standard in terms of banking services.

The employees of MTBL are the key contributing factor behind the success that is highly trained and most competent in their own field. Mutual Trust Bank Ltd. provides their employees training both in-house and out side job.

But we all know that it’s very hard to become the number one. Now days there are so many private banks in our country & all those are trying to provide their best services. While competition has increased many, banks are introducing new products by regularly updating automation to satisfy the customers. So I think to retain or improve competitiveness in the marketplace MTBL needs to change in organizational structure & provides many attractive services by which customers are impressed.

The management process of Uttara branch of MTBL is very time consuming. Based on my analysis, their management’s workflow activities are not well designed. Most of the customers are suffering due to the lengthy and clumsy service from several departments, which include cash department, accounts department, cheque book issue department and Cash transfer department.

I have given my maximum time in cash department, which is under general banking. There I realize that they are not providing good service even sometime they are not providing service.

Example

Sometimes they provide slow service, which kill client’s time.
Sometimes they said to client that the online is not working to avoid online transaction.
Sometimes they are bias to some client.

MTBL operating their business all over the country and providing online service but the entire branch is not linked under online network. Also their net work is not much effective. Every day I observed network is not working and they say sorry to client by saying system loss. That’s why client’s of this bank face lots of problem. Sometime clients pay more for absence of online network.

As I know banks shift their employee form one branch to another branch after 3 to 4 years. But in this branch job rotation is not common phenomena. Maximum employee of this branch is working here about many years.

Absence of job rotation sometime bankers becomes bias to the client. But the main problem I found that bankers become one family because of long time relation. Because of this relation they behave each other like family member. Many days I observed that after lunch the office become like market.

This banks salary is not much attractive to the employees. Some of the employees try to switch to other banks.

So that during my internship period I realised I will prepare report on MTBL which will be helpful for Banks management and its clients and where I can verify my knowledge to make a bank more efficient in quality of customer service. Because there is no doubt that a better management process at MTBL can increase the level of customer service and the efficiency of operation. After that I have selected report topic “Developing a Better Management Process to Increase Efficiency in Quality of Customer Service and Operation of Uttara Branch” and I talked with my supervisor and she supported me. Then I tried to find out the exiting customer services and new services. Finally I prepared this report.

Origin of the Report

This report is based on a work experience basis. School of business, ULAB, arranges dissertation paper in attachment with its students after the completion of theoretical courses (i.e., after final semester) of program of Bachelor of Business Administration (BBA). Each intern must carry out a specific project, which is assigned by the concerned organization and approved by the dissertation paper and placement committee of School of business, ULAB. Consequently a report based on the project is to be submitted to the committee. In order to fulfil this requirement, this report has been prepared.

Objective of the Report

The objective of the report is to get practical exposure to organizational environment as well as to understand the Management system and methodology by my academic skills and knowledge.

The objectives of internship program and the report are given below:

Practical Orientation with the Organization

To have a practical orientation with a business organization.
To take part in different routine and non-routine activities of the organization on ground at different positions/levels to learn the jobs/tasks by the interns themselves.
To observe and analyze the performance of the specific branch and the bank as a whole.
To have an exposure with the business processes including routine and critical decision–making in the selected organization.
To study existing banker customer relationship.
To identify and relate theoretical knowledge with practical situations, so that the intern is able to carryout an objective/structured analysis of the organization, in order to recommend alternative measure/processes, if necessary.

Independent Project Work

To apply theoretical knowledge acquired throughout the BBA course on a real life situation.
To formulate conceptual framework and related hypotheses on the issue.
To apply appropriate research methodology techniques.

Background of the Report

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. MTBL plays an important role towards the growth and economic development of Bangladesh.

This study is an attempt to find out the customer demand for providing better service.

Scope of the Report

I have completed my internship on in the Uttara Branch of Mutual Trust bank. This report allows me to focus on MTBL management process of customer service operation, which is directly or indirectly related to my field of study. This report contains detail operating procedure of each individual department of the branch, their products and services offer to the customer. This report also contains extensive analysis of the existing customer’s level of satisfaction. This report does not include any comparative analysis and market research that could be handful resources to implement the change offer by this report.

Methodology of the study

I worked with two types of data.

Primary data
Secondary data

The primary sources of my information’s are as below

Direct observation
Interviewing bank employees.
Interviewing clients

The secondary sources of my information are as below

Annual report of MTBL 2007, Audit report 2006-07.
Desk report of the related department
Various Different reference books of the library

Limitation of the Report

This report is “Developing a better Management process to increase efficiency in quality of customer service and operation of MTBL, Uttara Branch”. But there are some lacks of information due to some limitations.

The following limitations are apparent in the report—

Time is the first limitation. So that it is very difficult to collect all the information within 3 months time.
Bankers spend very busy time during office hours and it is very hard for them to find time for me to give briefs about banking norms. But they have given me practical ideas whenever they get free time.
Another limitation of this report is Bank’s policy of not disclosing, some data and information for obvious reason, which could be very much useful.

With all these limitations I tried my best to make this report authentic and worth reading.

2.9 Current Management Process of MTBL, Uttara Branch

The following page contains the existing management workflow of Mutual Trust Bank Ltd, Uttara branch:

i) Account Department Process

Though Uttara branch is a small branch of MTBL but they are dealing with huge number of customers. During my internship period, I have seen lot of customer is coming here to open different type of accounts and on the other hand some customers are closing their account also. Most of the customers close their account because they not satisfy with the service they are receiving from MTBL. Whether customer open or close their account they have to maintain a lengthy process.

ii) Cash department Process

Cash department of Uttara branch of MTBL is totally separated from other department so that customer can easily recognize the cash department. But to withdraw cash all customer need to go to an officer’s desk which is on the other side from cash department. Once the customer submits cheque leaf to that officer then he registered it and sends it to computer operator officer to check whether the customer has sufficient money to withdraw. If the account doesn’t have sufficient money to withdrawal then customer can’t withdrawal money. If the account has money to withdraw then it goes for the manually sign verification. It’s really a time consuming process because the signature could be verify by computer operator when he checks customer’s cash balance. Now a day computer allows verifying signature very easily. All they need to do is to scan the signature and input it to the customer database at the time they open the account. If the sign doesn’t match then customer can’t withdraw money. Whenever sign is matched then it goes to the 2nd officer for authorization. Then office peon sends it to the cash department to the cash officer, the cash officer deducts his withdrawal money from customer account and finally customer receives his desired amount.

iii) Cash Transfer Department Process

First of all customer goes to an officer who is assigned for cash transfer. The officer fill a form based on customer need – Pay order, D.D, T.T etc. Then the officer goes to another desk for posting cash transfer to a computer. Here the customer has to wait for a while. If there is no sufficient money on the customer account, the officer informs customer that he can’t transfer money (which is after fill the form). Here dissatisfaction can grow in both parties. After filling the form, if the customer realizes that he can’t transfer money- dissatisfaction grows in both parties because of waste of time and effort. On the other hand, when customer has sufficient money to transfer then office peon carry the form and send it to the manager for authorization. Here sometimes customer has to wait for long period of time because peon gets busy with other task. The manager’s room should be in a better position so that the authorization could be complete quickly. After that it goes to the cash department to deduct the transferred amount from the customer account.

iv) Cheque Book Issue Department Process

For new cheque book issue, customer has to bring previous cheque book’s white color leaf. First a customer goes to an officer who issues cheque book and submit it to another officer for processing. Then customer needs to go to 2nd officer for verification. Then it goes to the computer operator for posting. If computer operator finds that the customer didn’t use his previous cheque book’s every leaves then the customer does not get cheque book. It is a dissatisfactory service indeed. Here one thing is very irritating and inefficient in case when customer does qualify for new cheque book. The cheque book’s leaves checking act should have done by the first officer before verification process. Customer as well as employee could save their valuable time. If the customer used previous cheque book properly then the white leaf return to the assigned officer and after finish of sealing and registering he gives the new cheque book to the customer. But whenever customer lost his cheque book then he has to write an application to the manager, if manager give the permission then again process will be finished by following the previous process

v) Loan & Investment Department Process

Huge amount of cash flow is process on loan and investment purpose at Uttara branch MTBL. And most of the customers are really satisfied with the service they are getting from loan and investment department. MTBL is providing distinctive facilities for loan and investment services to the customer. As a result, the number of loan investment customers is increasing rapidly at this branch. First, customer comes to an officer who provides services from first desk of loan department. He checks the customer’s previous transactions. If it is poor then customer doesn’t get loan. If transactions are satisfactory then customer’s information goes to the manager. When manager gives permission, customer gets loan from cash department. Sometimes manager need to get permission from head office (bigger amount). If the manager doesn’t get permission from head office then customer doesn’t get loan too. Sometimes loan department need to justify more information and document about the customer. In that circumstance, the loan department creates an enquiry board. The enquiry board made the decision, whether the customer gets the loan or not.

vi) Proposed Management Process

First of all, MTBL Uttara Branch needs to redesign the office workflow diagram based on the relative activities and resources used by different department to complete their task. Their cash transfer department and loan & investment department should be besides the cash department because these department’s activities are directly related with cash department. Account department’s activities also directly related with cash department but customers dealing with this department relatively fewer than loan & investment department and cash department, so this department’s position could be just opposite of the cash department. The cheque book issue department’s activities are not related with cash department, so their position could be little far from cash department. And finally manager’s room should be middle position of the office because this position is the best suitable position for monitoring and controlling overall activities of the bank.

To avoid their existing delayed management process and clumsy customer services I have made some changes and developed a better management process for the cash department, cash transfer department, cheque book issue department and account department.

In the cash department, they are verify customer’s signature manually, where as in my proposed management process when a customer comes to withdraw cash, first of all employee registers account number and amount then he gives a token number to the customer to maintain customer’s serial. Then the cheque goes to computer to check cash availability in the customer’s account. At the same time, computer operator verifies the signature through computer. Here customer will be satisfied by this faster services and as well as employee can serve more customers by saving his time. Then if amount is not available then it will go back to the customer. If amount is available then it will go for authorized sign. After the authorization cashier delivers the amount to the customer.

To increase quality customer service I have made some change in the cheque book issue department, here customer have to submit previous cheque book’s white leaf to the cheque book issue process desk. Then it goes to the computer to check the uses of previous cheque book’s leaves. If customer didn’t use all the cheque leaves properly then he won’t get new cheque book. If he used properly then it goes for authorization. At present, the authorization is done before going to computer. Their existing system customer has to face three desk’s process to be confirmed whether he will get or not get the new cheque book. In my proposed management customer doesn’t need to go three desk’s process to be confirmed. Here he gets confirmation from second desk. After authorization it will be returned cheque book issue desk for registering and sealing every pages of the cheque book. Then finally customer will receive the new cheque book. This proposed management will help their operation. They can handle more customers because it is faster and it will increase efficiency in quality of customer services.

Corporate Culture of MTBL of Uttara Branch

Organizational culture means the common perception held by the organization’s members; a system of shared meaning. To practice corporate culture every employee has to be open minded each other and as well as customers. If any employee is struggling for his overloaded task then other should give a helping hand on him. But here what is happening in the Uttara branch, they are transferring employees if they are not serving well. I think it’s a negative impact on employees because it doesn’t grow employee’s job involvement and job satisfaction.

Structure of MTBL Uttara branch

Mutual Trust bank Uttara branch has relatively few layers between the top of the corporation and normal employee, so they have flat organizational structure. An organizational structure is a mostly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim. This branch’s organizational structure allows the expressed allocation of responsibilities for different functions and processes to different departments.

Employees structure any organizational design so that they can best accomplish the firm’s goals. The existing organization hierarchy of Uttara Brach is designed by above diagram which not a narrow or nor a wide span hierarchy. Normally hierarchy is consisted by functions, departments and designations. But in the Uttara branch I have seen the hierarchy is consisted by only their designations. Any organization’s goal achievement is very easy when their hierarchy is designed properly. In this branch has 19 employee excluding office peon, guard and tea boy. Manager is at the top position and he is responsible for all decision-making situations. Under the manager a Deputy Manager/senior executive officer is applying his diagnostic and conceptual skills.

Size of MTBL Uttara branch

Size measure has different purposes. Generally bank size depends on no. of employees, number of customers, profit, asset etc. By measuring these criteria Uttara branch of Mutual Trust bank is considered as a small-Medium size of organization. The total number of employees is 19 and they are dealings with near about five thousand customers.

General Banking

It is most important side of the bank. Bank is nothing but a middleman between lenders and borrowers. To provide investment facilities, a bank needs a huge amount of money from the depositors. General banking is the side where banks offer different alternatives to the clients to deposit and remit their money. To encourage the clients, bank offers different options in front of their clients. Most of these options are very much similar between the banks, but the customer services and facilities may not be the same.

a. i) Payment Order (P.O)

Payment order is a very popular cash transfer system of any bank. In the Uttara Branch of MTBL enormous customer is transferring money by payment order everyday. But only the customer who is the account holder of Uttara branch only he can get the service of payment order. Sometimes some customer who doesn’t have the account in this bank he can get this service by special permission from manager. Those are not getting permission they become frustrated.

ii) Demand Draft (DD)

Draft is done when customer want to transfer their money from one district to another district. The customer intending to remit the money through a Demand Draft (DD) has to deposit the money to be remitted with the commission, which the banker charges for its services. The amount of commission depends on the amount to be remitted Because of outside of Dhaka D.D. commission which the banker charges for its services.

iii) Cash Transfer

Remittance of funds is ancillary services of Mutual Trust bank. It aids to remit fund from one place to another place on behalf of its customers as well as non- customers of Bank. Mutual Trust bank has its branches in the major cities of the country and therefore, it serves as one of the best mediums for remittance of funds from one place to another.

iv) Online Transfer

Online cash transfer is a technological advanced feature of Mutual Trust bank. This feature really increased customer’s quality services. Customers are getting this service at the cheapest cost only monthly 100tk. So they are delighting by getting this service. Online customer is increasing rapidly in this branch because most of the current A/C holder customer has their business link with Dhaka city. As a result they can transfer money instantly through online.

v) Foreign Remittance

Foreign remittance collection is very poor in the Uttara branch of Mutual Trust Bank. They have contract with only Three-exchange Company, which are Wall-street Exchange, Express Money and Money Gram. Most of them are from Middle East country Saudi Arab, Kuwait, Oman, and UAE etc. Couple of days ago Mutual Trust bank made a contract with Western Union Exchange. It’s a great achievement for them, because it’s a criterion and popular money exchanger in the world. They have link with above two hundred countries so now people can easily transfer money almost all over from the world to Mutual Trust bank’s any branch. As well as Utttara branch’s customers will be benefited by these tremendous services.

vi) Clearing

Clearing is one of the magical parts of banking. Generally this clearing procedure handle by Bangladesh bank, that’s way Bangladesh bank’s other name is ‘Clearing house’. Most of major client deposit their account in different kinds of bank cheques. Clearing officer check all the cheques and deposit slip very carefully and then he received the cheque. All the cheques are posted in the computer by branch wise, then officer print the entire document and staple all the cheques by branch wise this is called schedule of clearing house. It is a very difficult job to staple all the cheques, because some time’s the cheques is huge in quantity, it may be 100 to 150, and this is very vital job indeed. If the cheques staple in wrong direction, the cheque may be return from another bank. All of the procedure the clearing in charge goes to the Bangladesh Bank clearing house before 10 am in the morning. The clearing officer checks all the bank’s cheque and he put all the cheques in bank wise, like as this another bank’s delivered their cheques in Mutual Trust bank desk. Then the officers of Mutual Trust bank have to calculate all the cheques by using calculator machine, Staple pin remover, and then he divided all the cheques as Mutual Trust bank branch wise.

b. Product & Services

The bank introduced a number of financial products and services since its banking operation. There are several types of bank accounts like current a/c, savings a/c, short-term deposit (STD) a/c, etc. in Mutual Trust Bank. Moreover, there are also term deposit accounts in the bank like short-term deposit (STD) and fixed deposit (FDR) a/c. Different accounts have different interest rates. Current accountholder does not get any interest as the account is opened for business purpose.

i) Types of deposit accounts

The relationship between the banker and the customer begins with the opening of an account by the customer. Initially all the accounts are opened with a deposit money by the customer and hence these accounts are called deposit account. Usually a person needs to open an account to take services from bank. Without opening an account, one can get only a few services from the bank. So the banking begins actually by opening an account with a bank.

ii) Current Deposits (CD)

In this kind of account a customer can deposit his money and can write one or more check to withdraw their money whenever customer wants. Current account is to serve big customers such as businessmen, joint stock companies, private limited companies, public limited companies etc. from the risk of handling cash by themselves. Most of the CD A/C holders are the small business owner like – dealers, different kinds of shop owner, etc. Though interest rate is 0% of this CD A/C but businessmen are holding this account to facilitate their business. Minimum deposit is 1500tk to open this account.

iii) Savings Bank Account (SB)

Savings Bank Account holder customer no. is greater than any account’s customer no. in this Uttara branch of Mutual trust bank. Currently they are dealing with more than two thousand six hundred SB account holder. And most of the customers are the lower and middle classes. SB account holder no. is increasing everyday. Customers of SB account wish to save a part of their incomes to meet their future need and intend to earn an income from their savings. Interest rate is 6.25% and minimum deposit amount is 1000tk to open this account.

iv) Short-Term Deposit (STD)

In Short-term Deposit, the deposit should be kept for at least seven days to get interest. The interest offered for STD is less than that of savings deposit. In Mutual Trust Bank various big companies, Organizations, Government Departments keep money in STD accounts. Frequent withdrawal is discouraged and requires prior notice.

v) Fixed Deposit Receipt (FDR)

These are the deposits, which are made with the bank for fixed period specified in advance. It is purely a time deposit account. The bank does not maintain cash reserve against these deposits and therefore the bank offers higher provisional rates of profit on such deposits. At present the provisional rate of profit for FDR in Mutual Trust Bank Ltd. are as follows: 1, 3, 6, 12, 24, 36 Months which interest rate is 10% to 12.50%.Type of Savings Scheme

Type of Savings Scheme

i) MTBL Double Saver Scheme

MTBL Double Saver Scheme is the most attractive product of Mutual Trust Bank, because by this scheme they can make their deposit amount just double after 6 years. This bank offers various deposit amounts to catch up different level of customer. These are as follows – 50000tk, 100000tk, 200000tk and 500000tk.

ii) Brick by Brick Savings Scheme

BRICK BY BRICK savings scheme is a scheme by which customer can easily save their money. This branch has all level of customer against this scheme – lower, middle or higher class customer. There are four instalments amount is available Tk. 500/-, 1000/-, 2000/- or 5000/- for the savings period of 5, 8 or 10years. So which amount is affordable they are choosing it. This scheme is very helpful for customer’s future life.

iii) Monthly Income Scheme

It’s a very useful and effective scheme for those customers who have money but they are not getting any scope to invest for monthly fixed income. The Bank will provide the customer a deposit receipt after opening the account. This receipt is non-transferable. Minimum deposit amount is TK 1, 00,000. Monthly income will be credited after one month. However, no profit will be paid if the deposit is withdrawn within 1 (one) year of opening the account and monthly income paid to the customer will be adjusted from the principal amount.

2.14 SWOT Analysis:

We know that every organization has its strengths, weakness, opportunities & threats. I have also found some topics by doing swot analysis. sowt

3.1 Analysis & Findings

During my internship period I observed all activities and try to find out the lacking of the branch as I assigned. With my poor knowledge and experience I try to do this. I have mentioned the lacking of this branch above. Now I am just giving some of opinion to overcome the lacking but it may not be true. But I am sure that it will be satisfactory for clients more than now.

1) I mentioned before their service is not good so I think management should take care of their service. They should know what client wants, how they will be more satisfied. I think management should arrange survey about clients demand and according to the survey they must train their employees.

2) This bank has 36 branches all over the country. But all the branches are not under online network. Now a day’s online transaction is one of the major components to provide better service. Also their network is not much effective. So I think they have to appoint skilled IT manager and use better machineries. They must linked entire branches under network.

3) Online commission problem become the common phenomena. Every day you will see some of clients go to other bank to avoid online commission. Many bank cut online commission form account holder. This bank had that system before now they change the system. Both systems is create same problem but if they cut form account holder then it will not kill bank’s image.

4) Management of this bank is taking decision for open new branch or shifting branch from one place to another place but they are not choosing perfect place for banking activity. Management should think about this problem. I think 60% of success depends on the place and 40% depend on service. So management should careful about this.

5) Job rotation is very much important in service sector especially in bank. But it is found that maximum employees are working there for above 5 years. So I think management should interchange employees among branches.

6) Other bank is giving more salary then MTBL. So, young employees trying to switch job to other banks. From my point of view I think if someone employees are paid more they will give more effort.

7) I have found that the management process of Uttara branch of MTBL is very time consuming. So that sometimes it becomes the responsible to loose its clients provide slow service, which kill client’s time.

8) As previously mentioned, the world is advancing e-technology very rapidly. But MTBL is not possible to complete the mission due to the poor technological infrastructure of our country

9) Because of their poor & lengthy process clients are taking decision to close their accounts. MTBL fails to provide the customers expected services because of their inappropriate management process.

10) Though it is air-conditioning based. But in the general section, the air condition is not working properly. During my internship period I also faced very warming situation. And I also observed that most of the customers are feeling bother for this reason. They are very dissatisfied about the service of Uttara branch.

11) Uttara branch also fails to provide the service to the customers who are coming to collect their foreign remittance, while electricity has gone. So the employees only say them sorry & they request them to come another day. This makes customers bother.

All of the findings are my own opinion. I think it will make the bank more efficient and effective

3.2 Recommendations

It has a large portfolio with huge asset to meet up its liabilities and the management of this bank is accomplished with the expert bankers and managers in all level of management and with a little knowledge about banking, it is not an easy job to find out the difficulties of this branch. Rather than recommending I would like to give my opinion to improve the banking service and make the customer more satisfied.

i) Renovation of customer service

Bank is a service industry and banks render service to the customer. A proverb goes in the banking arena that customer is the King and the Deposit is the Life –blood of the bank the more the deposit of the branch, the more the profit is there. So it is customer^’s money by which the bank runs its business. Therefore the customer may be the king and deposit is the life- blood of the bank. Since a number of new banks are coming to existence with their extended customer service pattern in a completely competitive manner. Customer services must be made dynamic and prompt. Now a days, people especially business people have very little time to waste. So the bank should make its service prompt so that people need not give more time in the banking activities.

ii) Bank should be innovative and diversified in its services

This branch provides only conventional services. Modern banking today is introducing various kinds of deposit account with different attractive features each of which may attract different groups of people. For example, Saving Certificate Scheme introduced by Islamic Bank is one of its unique services in the banking in Bangladesh. Even the bank does not provide any ‘Customer Loan’ facility, which has been found very much profitable for those banks who have introduced it in their banking services.

Bank should diversify its banking services and add new features in its services so that it can attract customers from all groups of people. Financial Engineers of MTBL, Uttara Branch should be innovative in developing new banking services, which will attract customers and reduce costs. It can introduce customer loan scheme, provide bridge loan, or can engage in lease financing. It can also underwrite shares of newly incorporated public companies.

iii) Bank should immediately enter into the credit card market

This bank does not have any plan to enter into the Credit Card Market. It is well versed that tomorrow’s payment will be consisted of only plastic money (Credit Card). A la[i]rge part of business transaction will be done by credit card in near future. In western [ii]world, more than60% of transactions is in credit card¨. If this bank does not prepare from now on, it cannot compete in the future market. So, the branch should give special attention to the introduction of Credit Card.

iv) Introduce modern technology

Without using modern technology no bank can even think of remaining in the business in near future. So the bank must decide right now how it can equip its branches with modern technology. Use of modern technology in one sense can increase cost but another sense it increases productivity highly and it attract big clients

v) Information System should be developed

For information transfer, branch uses primitive ways of telex, messenger and personal visit. It makes correspondence with the head office by peon or orderly. For international correspondence the branch uses telex machine, which is very costly. And in the branch, manager has to visit specific desk for collecting information. Paper communication is too involved between manager and employees. But branch can use INTERNET for both local and international correspondence. E–Mail can reduce the telex cost substantially. Bank should take urgent decision to create own WEB Page in INTERNET so that it can communicate with others very quickly.

vi) Development of human resources

Human resource is another sector for the branch to be developed urgently. Human resources, in the branch, are not equipped with adequate banking knowledge. Majority of the human resources are lack of basic knowledge regarding money, banking finance and accounting. Without proper knowledge in these subjects, efficiency cannot be optimized. Bank can arrange training program on these subjects.

vii) Reduce classified loan on an emergency basis

It is observed in the Loans and Advances department that classified loan is about to 36% of the total loan portfolio. Such a big share of classified loan indicates weakness in the lending policy of branch. Probably bank’s customer selection process is not right. Bank should take special action in order to reduce the amount of classified loan. Although branch is maintaining the required provision for its classified loan, branch should consider recovering classified loan on an emergency basis. For this bank should motivate the defaulter for repaying. If motivation failed, then bank should be stringent about the defaulter and take legal action.

viii) Bank should remove the time card system

The oddest thing in this bank is that it maintains a time card system to maintain the attendance of the employee including manager of the branch. It is definitely effective system but it is simply used to record the work hour of the labours in any manufacturing concern in the western countries to make their payment effectively those who are hourly basis worker. This system cannot be employed to the high officials like Manger of the branch etc. this creates an inferior impact on the mind of the employees that they are ill treated which decrease their service providing quality.

ix) Bank must try to be computerized

There are computers almost in every branch in the MTBL, but it does not mean that the bank is maintaining a network among them. The networking system obviously charges a high installation cost, but it will definitely reduce the overhead costs and an error free banking may be in progress. Moreover by adopting this system the bank can join in modern competition of along with e-commerce concept. The main problem is that the foreign banks and other private commercial banks have started providing with these facilities, so introduction of these facilities will be added as modern facilities enhanced, rather it will be a question of survival in the next decade for the bank.

Besides these to improve its overall performance the bank can do the following:

To select potential clients & borrower.
Strengthen the cells.
The bank can increase their products’ advertisement that will help customer know their products and Islamic banking system details. They can give its free brochures to customer when customer opens an account. They could also publish it on newspaper, TV and billboard etc.

This branch should provide with more computers in the account opening and cash transfer departments. It may need more fund but on the perspective of taking competitive advantages by providing quality customer service they should buy more computers.

The bank should improve and prompt technological facilities to increase efficient way of customer services.
The branch should increase internet speed and use quality server support machine to speed up banking process and delivery of services which would help the staff save time and prompt their tasks.

3.3 Conclusion

During the three months internship program at MTBL Uttara Branch, almost all the desks have been observed more or less. This internship program, in first, has been arranged for gaining knowledge of practical banking and to compare this practical knowledge to theoretical knowledge. Comparing practical knowledge to theoretical knowledge involves identification of weakness in the branch activities and making recommendations for solving the weakness identified. Though all the departments and sections are covered in the internship program, it is not possible to go to the depth of each activities of branch because of time limitation, but, as far as I concern about the bank, it provides with all the major services that a client can demand from a bank and, thus, referring to its growth in the past and it can be said that the bank has the potential of becoming the front-ranking bank in our country.

However, the branch is unable to meet the expectation of the client. So, Customer is closing their account too. To maintain a sustainable growth for the company, the MTBL at Uttara Branch need to increase efficiency of quality customer services by a better management process. If the MTBL at Uttara branch improves their existing management process by implementing proper technology and increasing quality customer services then definitely they will be on top of all branches at Uttara Rather than other bank’s branches.