EXECUTIVE SUMMARY
In order to provide a student with job exposure and an opportunity of the transition of theoretical knowledge into real life experience, an internship is a must. A better balance between theory & practice can be gained through this program.
Banking system of Bangladesh has gone through three phase of development. Nationalization, Privatization and Financial Sector Reform. Jamuna Bank Ltd. is a third generation Commercial Bank established in June 03, 2001 with new hopes and promises to serve the countrymen.
This report contains five chapters. First chapter deals with introduction, origin objective, scope, methodology and limitation of the study. Second chapter contain Definition of the concept as Service, Service Motto of JBL, Customer, Customer Satisfaction, their relations, rights and obligations. Third chapter emphasis on Organizational profile of JBL, Hierarchical and Functional position, Performance at a glance, Profile and P/L and Functions of Commercial Bank. Fourth chapter analyze on customer satisfaction. Fifth chapter contains Findings of the study, Contributions and Conclusion of the study. Appendix part on Bibliography and Questioner.
The report is an internship program with Jamuna Bank Ltd.. I acknowledged different banking functions and day-to-day banking operations on my way to complete internship. In this paper I have explained my best in respect of my real life experience gathered from different departments.
1.1 Introduction
All over the world the dimension of Banking has been changing rapidly due to Deregulation, Technological innovation and Globalization. Banking in Bangladesh has to keep pace with the global change. Now Banks must compete in the market place both with local institutions as well as foreign ones. To survive and thrive in such a competitive banking world, two important requirements are Development of appropriate financial infrastructure by the central bank and Development of “professionalism” in the sense of developing an appropriate manpower structure and its expertise and experience. To introduce skilled Banker, only theoretical knowledge in the field of banking studies is not sufficient. An academic course of the study has a great value when it has practical application in real life situation. So, I need proper application of my knowledge to get some benefit from my theoretical knowledge make it more tactful.
In a simple word, Excellence is the Capacity of producing desired result. So, Excellence of customer is, how customers perceive services, how they assess whether they have experienced quality services and whether they are satisfied or not.
When it refers to Excellence of customer, we assume that the dimensions of services and the ways in which customer evaluate services are similar where the customer is internal & external of the organization.
1.2 Origin of the report
Internship program is a pre-requisite for acquiring Evening MBA degree. Before completion of the degree, a student must, undergo the Internship program. As the classroom discussion alone cannot make a student perfect in handling the real business situation, therefore, it is an opportunity for the students to know about the real life situation through this program.
This report titled on “Service of Jamuna Bank Ltd. and the level of Customer Satisfaction” is under the supervision and guidance of Dr. Md. Ashraful Islam Chowdhury, Professor, Department of Marketing, University of Dhaka and colleagues of Jamuna Bank Ltd., Motijheel Branch, to meet the requirement of the Internship program.
1.3 Objective of the Report
The Objectives of the Study are as follows:
To Find out the:
q Service quality of the bank to the customer.
q Customer opinion about the profit given to them.
q Bank investment facilities.
q Internal decoration of the bank
q Bank image to the customer.
q Bank relation with customer.
1.4 Scope of the Report:
q It will help the Bank to measure and assess the Service quality that they are presently providing to the Customer.
q It will be helpful to a better understanding of the Bank’s relation with Customers as well as Bank’s Image to Customer.
q The Study will also contribute in new strategy to develop the future growth of the Bank.
Therefore, in this project sincere efforts have been made to gauge the efficacy of customer service by the original perceptions of it’s customer.
1.5 Methodologies of the Report:
Marketing research is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company. It is the function that link the customer, customer & public to the market through information –information is used to identify & define marketing opportunities & problem’s to generate, refine & evaluate marketing action, to monitor marketing performance & to improve understanding of the marketing process.
At the time of planning & designing the research project it is necessary to follow a sequence of steps which will make the project quarterly reliable & successful.
1.5.1 Types of Research Design:
Exploratory Research:
A type of research conducted to clarify the problem definition and prepare for additional research to prove or disprove the hypothesis. Exploratory research again subdivided into three categories they are
- Literature Survey
- Experience Survey
- Case Study
The purpose of this research is to extend aid to the investigation in formulating the research hypothesis. For this reason, it is also called Formulating Research.
Conclusive research:
Conclusive research design is more applicable research design than exploratory research. Once the hypothesis is formulated, the stage is set to collect data and prove the hypothesis.
Descriptive research:
Descriptive research has been used to describe that existed in the market/field outside where the project study was conducted description of goods, customer, Business process, buying habits etc.
Experimental research:
The most scientifically valid research is experimental research. The purpose of experimental research is to capture cause -and-effect relationship by eliminating competing explanation of the observed findings .In the study, Descriptive research is adopted because descriptive studies are accurate and very simple. The descriptive method is very effective to find out and know the characteristics of certain group as age, sex, educational level, occupation or income.
1.5.2 Sampling Method:
All items in any field of inquiry constitute a universe or population. A complete enumeration of all items in population is know as a cense inquiry. When the ‘Universe’ is small in size, this type of inquiry can be made, but when the research is done with a large number universe, sampling is used for collecting data required for the study. As in this study for collecting data required I had to meet with customer with questionnaire and as the numbers of customer are few in number used sampling as a technique of collecting data.
Different types of sampling:
Sampling is the process of selecting units (e.g. people, organizations) from a population of interest. Broadly there are tow types of sampling-
- Probability Sampling
- Non- Probability Sampling
Probability Sampling:
This sampling technique utilizes some from of random selection. In order to have a random selection method, one must set up some process or procedure that assures that different units in the population have equal probabilities of being chosen.
Non-probability Sampling:
Non-probability samples results from a process in which judgment of bias enters into the selection of members of a universe included in the sample.
For completion this research I have adopted “ Simple Random Sampling Method ” as the sampling technique.
Simple Random Sampling:
This type of sampling was basically used as it gives every unit in the population an equal and independent chance of being included in the simple random sampling , the method adopted was the use of random numbers . This sampling was mainly to find out the satisfaction level of the customers.
In this project I have used “Simple Random Sampling Method.”
Because this Random Sampling Method is enable-
- To give each unit of population an equal probability getting in to the sample.
- To give each possible sample combination on equal probability of being chooses
Sample Size:
In this research I have choose 20 samples size out of total customer in Motijheel Branch. So the sample size 20 will be the maximum potential. It will help me to find out and solve the problem practically.
Data collecting Method:
There are number of tools to collect data. Some tools use to collect the primary data and some used to collect the secondary data. Data or facts are the raw materials for the research. The reliability of the research is mostly depends on its accuracy of data collection. There are two type’s data-
- Primary data
- Secondary data
Primary data:
The primary data is those types of data, which are collected from the root. It’s also called the raw data. There are various tools of collecting primary data.
- The observation tools
- The interview tools
- The questionnaire tools
Secondary data:
The secondary data are those, which have already collected by some one else And wishes have been passed through the statistical process. This data can be collected by two sources:
- Internal tools
- External tools
Internal tools:
Internal tools are includes:
- Bank brochures
- Palm lets
- Bank Journal
External tools:
External data collection tools are includes:
- Website browsing
- Magazine
- Television
Direct data collection tools have used for my project. I have used here questionnaire tool to collect the data.
1.6 Limitations of the Report:
The main hindrance behind preparing this report and extensive one was time. To provide current information and to make the report read –worthy, support from various sources is a must. All of the staffs of Jamuna Bank Ltd. were extended their support and tried their best for this research but it was very tough for me to manage time preparing this. While collecting the necessary data i.e. interviewing the customers, they didn’t disclose much information for the sake of the confidentiality of them and as I am the Manger of the Branch. Last of all, Lack of personal experience to prepare this type of report is totally new to me as an intern.
LITERATURE REVIEW
2.1 Operational Definition of the Concept:
The essence of marketing is an exchange or transaction, intended to satisfy human needs or wants. That is, marketing is a human activity direct at satisfying needs and wants, through an exchange process. A demand is a want for which the customer is prepare to pay a price. A want is anything or service the customer desire or seeks. Wants become demand when backed by purchasing power.
Efficacy:
Efficacy is the capacity of desired result. That is the process by which an individual select, organizes and interprets information inputs to create a meaningful picture of the world.
Attitude:
An attitude is a learned predisposition to behave in a consistently favorable or unfavorable with respect to a given object (e. g. a product category, a brand, a service, an advertisement). The attitudes are hypothetical constructs that may be distinguished by their multiplicity. They may be viewed a having three main components-cognitive, affective and cognitive.
Bank Image:
Bank image is defined as the bank reputation to the customer depending on banks performance and growth rate. Positive bank image is associated with customer loyalty, their belief and willingness. It is the most important factor for can banking sector in the world.
2.2 What Behinds the Service of Jamuna Bank Ltd.?
Earned profit by rendering service is the main motto of all commercial bank but as a third generation bank Jamuna Bank Ltd. perform some extra task for the welfare of the country and the country people. Twenty first century opened the expected door of globalization. The whole world changed with a modern, radical & technological revolution. Life style & status are widely changing to have a green, delightful, flourishing environment. Jamuna Bank Ltd. is committed to fulfill the requirements of the mass people. The Board of Directors will sustain the customers to form and expand new business, industry and new project & proposals. Jamuna Bank Ltd. is committed to overcome the poverty of the society and be as partner for growth. Bank will accept and implement new schemes with dynamic leadership. Humanitarian perfection, Economic progress, Assistance & service to the mass people are the basic objectives of Jamuna Bank Ltd.. Other objectives of Jamuna Bank Ltd. are-
- Makes profit by rendering services to general issues and to all sectors of the economy.
- Develops and extend all possible help for growth of the national economy.
- Accelerates the pace of the private and public sectors of the economy will be extending credit facilities and other consulting services.
- The extended financial assistance for balancing modernization replacement and exposition of the existing industrial projects.
- Provides financial assistance for setting up new industrial projects which are economically and financially rewarding technically feasible and socially desirable.
- The overall main objectives of the Jamuna Bank Ltd. are to provide social benefit through projects and that will not be antagonistic of people welfare.
What is service?
- Bank is a service industry. Service is its only product.
- Service is intangible, yet it provides satisfaction of the customer.
- People, not manufactured by machines, perform service.
2.3 Customer:
Customer is an individual or group of individual or organization who use service from reliable source with a great objective for further use of the service. In the context of bank the depositors, the investment takers, and the service customer are customers.
A customer –
- Should have an account with bank.
- Should deal with the bank in its nature of regular banking business.
- Should have dealing with the bank with an intention to continue the dealings frequently though even a single transaction with the bank satisfies the test for being a customer of the bank.
2.4 Customer’s Service:
Service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its product may or may not be hidden to a physical product. Customers are the service provided for the customers by the bankers or by the sales man to satisfy them and maximize their positive attitude towards the bank or the products. Service is the main product of the bank. In case of customer service a bank should remember the followings:-
- There is no limit it be best customer service.
- Never bargain with the customer.
- Do not shift responsibility to others shoulders.
- Try to satisfy the customers when they come with complains.
2.5 Customer satisfaction
The most common interpretations reflect the notion that satisfaction is a feeling which results from a process of evaluating what was received against that expected, the purchase decision itself and the fulfillment of needs or want (Armstrong & Kotler, 1996; Berkowitz et al.1999). Kotler (1999) also noted that satisfaction is a function of perceived performance and expectations which identifies feelings of a person resulting from comparing a product’s perceived performance in relation to his or her expectations. Bitner and Zeithaml (2003) stated that satisfaction is the customers’ evaluation of a product or service in terms of whether that product or service has met their needs and expectations. Fe and Ikova (2004) added that the perception of the word “satisfaction” influences the activities which we conduct to achieve it. Researchers have also identified customer satisfaction from a multi dimensional nature and view overall satisfaction as a function of satisfaction with multiple experiences with the service provider (Sureshchandar et al., 2002).
2.6 Bankers and Customers Relationship of Jamuna Bank Ltd.
The nature of relationship between a banker and a customer is contractual in nature. The account of the customer forms according to the type of contract, which may be stated as under:
a) Debtor and Creditor
b) Principal and Agent
c) Balior and Baliee.
d) Lessor and Lessee.
e) Trustee and beneficiary.
f) Mortgagor and Mortgagee.
g) Special relationship.
2.7 Special Relationship:
a) Obligation to our customer’s cheque.
b) Obligation to maintain secrecy of the customer’s A / C
c) Banker’s right of general lien.
d) Right to set off.
e) Banker’s right of application.
f) Right to change interest, commission and incidental charges.
g) Garnishee order.
h) Law of limitation Vis-à-Vis banker.
2.8 Some Features of customer Service i. Customer services of a bank are related to:
a) Qualitative Aspects
b) Quantitative Aspects ii. Services Related to the Customers by the Bank Branches can by group into:
a)Counter Services, such as cash receipt& payment, issuance of cheque books, D.D, T.T, P.O, etc.
b) Non-counter services such as enquiry, Account Opening, Investments, Foreign Exchange, Collection of Bills, etc.
- iii. Effective Customer services depend on appropriate ‘Product (Service behavior’ mix, to be developed keeping in mind needs and aspiration of a particular set of Customer.)
- iv. Customer Service (Performance is the multiplicative function of ability and motivations).
2.9 Requirements for Attractive Customer Service:
Right and Obligations
Rights
Since the relation between a banker and a customer is a contractual relation the contracting parties have some rights as well as obligations on each other .Some of these are furnished bellow :-
1) Banker’s Rights to set off:
Where there is a credit balance is one account (if not kept for any special purpose) and debit balance in another account of the same customer the banker has a general lien on the credit balance which he can set off against the debit balance . The set off is the adjustment of mutual debts due at the date of set off and there is no agreement express or implied from the course of business to the contrary. There is difference in opinion in this matter. However, a prior notice to be given to a customer of intention to combine any account. It is best to obtain a letter of set –off from the customer at the time of opening accounts.
2) General Lien:
In the absence of an agreement to the contrary, a banker can retain the documents, goods and securities of his debtor customers till the adjustment of debt. This is call general lien of the banker (lien means the right of a banker to retain the things of the debtor till the debt is satisfied) but goods left with banker for specific purpose will not be subject to general lien
3) Banker can terminate relation ship with his customer (closure of accounts) after giving him a notice to this effect.
4) Banker may recover service charges to the debit of customers accounts without prior instruction
5) Banker can charge profit /interest on investment/loan allowed to his customer.
Obligations
i. The banker is under obligation to maintain secrecy of his customer’s account unless he is compelled to disclose it under order of court or compulsion by law.
ii. As per section 31 of Negotiable Instrument Act 1881 the banker is under obligation to honour cheques drawn by customers so long as his balance is sufficient provided the cheque is drawn properly placed in time and there is no legal bar to pay it
iii. Collection of cheques, bills etc. and deposit the same to the customer’s accounts is a general banking duty of a banker
iv. It is a duty a banker to supply pass books or statement of Accounts to his customers. It is also obligatory to provide periodical balance certificate to the customers.
2.10 Factors Influencing in delivering Services
Place: Physical attraction of the institution is where the following criterions are fulfilled:
- Quick
- Efficient service
- Sound communication
- Safety
People: personnel of the bank and their behavior:
- Dress of the bankers
- Reception of customers
- Introductory words
- Ideological and professional knowledge
- Knowledge about past and present position of the bank and ability to forecast about the future position
- Know about the product and services of the ba
Equipment:
- Teller machine
- Close circuit camera
- Computerized banking system
Communication:
- Phone, PABX, Inter-com, Mobile
- Fax, E-mail, SWIFT
Symbols:
- Cash Transaction vs ATM Card
- Bonds vs FDR vs MSS
- Current Account vs SB
- F.C. VS RFCD
Value:
- Comparability
2.11 Customers Responsibility:
I. It is the responsibility of a customer to ensure safe custody of his cheque books. If any cheque/cheque-book is lost, be must informed it to the banker immediately.
II. A customer should draw cheque in proper form with reasonable care.
III. Section 65 and 68 of NI Act indicates that a cheque must be drawn upon the bank branch where the money were deposited and be presented in banking hour.
IV. A customer has no right to combine his two or more accounts. He can’t issue cheque on an account with insufficient balance presuming that the banker will pay it as he has sufficient balance in his other account.
2.12 Techniques for Providing Excellent Customer Service
1) Customers’ Agenda:
Every customer comes with two agenda.
h) His functional agenda (His functional agenda is satisfied when is problem is identified and dealt with.), and
i) His ego agenda (His ego agenda is satisfied when he feels that he has received adequate attention).
–Sharu S. Rangnerkar.
2) Customer service programs:
- Customer service programs teach us to say“ Please” and Thank you, give smiles and Handshakes.
–Shiv Khera
3) Personalized Service:
4) Ways and means for better customer service:
I. Courtesy
II. Commitment
III. Knowledge of the job
IV. Motivation
V. Quick Service
VI. Formalities
VII. Information System
VIII. Monthly Customer Service Day
IX. Physical Activities
X. Staffing
XI. Miscellaneous
