Preamble
IFIC Bank Ltd. is one of those banks that plays important role in the economy of Bangladesh. There are Eighty three branches of IFIC Bank in our country. The activities of the branches are more or less same but there are some differences as per the size of the branches. As I was placed to Narayanganj Branch of IFIC Bank as an intern, my focus of the report will be basically on the functions of Narayanganj branch only. The format of the report is being followed as per the guideline given by the VictoriaUniversity of Bangladesh authority.
The Bank in a Sketch
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. In 1983 when the Government allowed banks in the private sector, IFIC was converted into a full-fledged commercial bank.
Bank’s Mission
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.
Ownership Structure
Previously IFIC Bank Ltd was Government owned bank. Now the government of the PeoplesRepublic of Bangladesh holds 34.34 % of shares of the bank. Leading industrialists of the country own 34% of the shares and the rest of the 31.66 % is held by the general public. The founder of IFIC Bank Ltd was Jahurul Islam of Islam Group of Industries. He was the first Chairman and A.S. F. Rahman was first Vice Chairman. Board of Directors of the Bank is a unique combination of both private and Government sector experience. Currently it consists of 13 Director. Of them eight represent the sponsors and general public and four officials in the rank and status of Additional Secretary/Joint Secretary represent the Government.
Current Board of Directors:
Mr. Mohammad Lutfar Rahman Chairman
Mr. Abu Tahir Mohammad Golam Maruf Director
Mr. Murshed Murad Ibrahim Director
Mr. Aminur Rahman Director
Mr. Md.Yasin Ali Director
Mr. Syed Anisul Huq Director
Mr. Mohammad Nayem Sayed Director
Mr. S.M Faruqi Hasan Director
Mr.Tanim Noman Sattar Independent Director
Mr. Mohammad Ali Khan Director
Mr. Syed Monjurul Islam Director
Mr.Mahmudul Huq Khan Director
Mr. Arastoo Khan Director
Mr. Mosharraf Hossain Managing Director
Composition of the Board
Unlike other banks in the private sector, Board of Directors of the bank is a unique combination of both private and Govt. sector experience. Currently it consists of 23 Directors. Of them five represent the sponsors and general public and four senior officials in the rank and status of joint Secretary/ Additional Secretary represent the Govt. Managing Director is the ex-officio Director of the Board.
Objectives of the Bank
The objectives of the bank are to promote joint participation of Government and private sponsors to establish joint venture banks, financial companies, branches and affiliates abroad to satisfy their customers.
It conveys its objective via their motto: “You’re Satisfaction First.”
To establish, maintain, carry on, transact, undertake and conduct all types of banking, financial, investment and trust-business in Bangladesh and abroad.
To form, establish and organize any bank, company, institution or organization, singly and/or in joint-collaboration for partnership with any individual, company, financial institution, bank, organization, or any Government and/or Government agency for- the purpose of carrying on banking, financial, investment and trust business and/or any other business as provided hereafter.
To carry on any business relating to Wage Earner’s Scheme as may be allowed by Bangladesh Bank from time to time including maintaining of Foreign Currency Accounts and any other matter related thereto.
To contract or negotiate all kinds of loan, and or assistance, private or public, from any source, local or foreign, and to take all such steps as may be required to complete such deals.
To form, promote, organize, assist, participate or aid in forming, promoting or organizing any company, bank, syndicate, consortium, and institute or any holding or subsidiary company in Bangladesh or abroad for the purpose of undertaking any banking, financial, investment or trust business.
To take part in the formation, management, supervision or control of the business or operations of any company or undertaking and for that purpose to render technical, managerial and administrative services and act as administrator, manager and secretary.
To purchase, or otherwise acquire, undertake, the whole or any part of or any interest in the business, goodwill, property, contract, agreement, right, private assets and liabilities of any other company, bank, corporation, partnership, body person or persons carrying on, or having ceased to carry on, any business which the company is authorized to carry on, upon such terms and may be deemed expedient.
To encourage, sponsor and facilitate participation of private capital in financial, industrial or commercial investments, shares and securities and in particular by providing finance in the form of long, medium or short term loans or share participation by way of subscription to the promoter shares or underwriting support or bridge finance loans and/or by any manner.
Strategies
IFIC Bank Limited mainly follows top down approach to take necessary decisions for the company. Basically they follow the centralize strategy where the Head Office of the Bank control and monitor all the activities of its branches. In case of marketing strategy they basically depend on ‘word of mouth’ as they are already well reputed for its long-term service in the banking industry.
Capital and Reserves
IFIC bank has been consistently maintaining the ‘Capital Adequacy Ratio’, as prescribed by Bangladesh Bank. This has been made possible by a policy of building up both capital and reserves. It started with an Authorized and Paid up capital of Tk.100 crore and Tk.63.20 crore respectively in 1983. Authorized and paid up capital increased to Tk.500 crore and Tk.134.66 crore respectively in 31.12.2010.
Strength & Performance
With the active support and guidance from the Government, Central Bank, clients and patrons, the Bank has been maintaining sound financial strength and showing a steady and impressive business performance. IFIC Bank is one of the few mentionable banks which maintains Capital Adequacy ratio and has more than required provision as per Bangladesh Bank criteria.
Starting with a modest deposit of only Tk.863.40 million in 1983, the Bank had closed its business with a deposit of Tk.35000.08 million as of 31st December, 2008. Total credit stood at Tk.30000.66 million as on 31.12.2008 against Tk.21, 694.90 million last year. Bank has posted an operating profit (un-audited) of Tk.366940986 during the year ended 31st December, 2008.
Credit Policy & Portfolio
Credit policy of the Bank works within the framework of three main objectives, namely, maintenance and improvement of quality of assets, recovery on time and building-up of an efficient customer oriented credit delivery system.
The portfolio includes working capital financing, project financing, import-export financing and domestic trade financing etc. The Bank continued to extend working capital facilities to customers to ensure smooth and uninterrupted operation of their business. At the same time, it expanded project financing portfolio to meet the growing demands of the economy for long term financing in a depressed capital market.
Project Loans are extended for setting up of new projects and BMRE of the existing Projects as well. Due emphasis was given to financing export oriented and export linked industries without loosing sight of the need for long term loans by other domestic market based industries and ventures. The Bank has financed 34 projects during the year 2009 amounting to Tk.2529.45 million. In long term portfolio, the bank has been diversifying from textile and RMG industries to steel industries, CNG filling stations, Power Sector, Pharmaceuticals Sector, Telecom industries, Chemical project etc. The Bank also participates in syndicate financing. During the year 2009 the Bank sanctioned syndicated term loan of Tk.1175.09 million and successfully arranged a syndicated term loan facility of Tk.565.04 million as the Lead Arranger.
IFIC Bank Limited has also started lease financing in August 2004 operating under CRM Division. Lease financing has been proved to various concerns in different sectors especially:
CNG conversion and refueling plant
Capital machinery/industrial plant
Medical equipment
Generator, lift, escalator for commercial buildings
Agricultural equipment like tractors/power tillers/trailers
Automobiles like bus, luxury bus, minibus, truck, car, pickup, water transport etc.
Components for IT education centers
As of December 31, 2008, loans amounting to Tk.786.96 million have been sanctioned under lease finance scheme.
In terms of Bangladesh Bank Circular, the Board of Directors in its 633rd Emergency meeting held on 17th December, 2009 approved Prudential Regulations on Small Enterprise Financing and Consumer Financing. Accordingly, the schemes were made operative on 2nd March, 2008.
In order to cope with the ever changing market situation, both the schemes introduced various products. In consumer financing, products like, Consumer Durables Loans, Parua, Thikana, Flexi Loan, Peshajeebi Loan, Auto Loan, Festival Loan etc. have been launched to cater to the needs of the people of different segments of the society. The bank has received a spectacular response from the customers in the sector. Total outstanding of consumer loan stands at Tk.5280.80 million as 30.12.2009 which indicates full support and confidence of the clientele.
In Small Enterprise Financing collateral free loan under the name and style “Retailers’ Loan” has been introduced to finance small traders who have no collaterals to offer. Another product titled “Possession Right Loan” offered to the proprietor of the business concerns, only against Possession Right Deed is also very popular. Besides, there are other products designed to fulfill the needs of the small businessmen. Total outstanding of Small Enterprise loan stands at Tk.7412.28 million as on 30.12.2009
The bank is in the process of launching Credit Card to expand the retail portfolio. As approved by the Visa Asia-Pacific. Board of Directors, IFIC Bank has got Principal Membership of Visa and Plus program. Now IFIC Bank is allowed to issue Visa Cards and can set-up electronic and acceptance machine and ATMs in various merchant locations wherein both the IFIC Bank Visa Cards and other Banks’ Visa Cards can be used. The forma operation of Credit Card has already been started.
Distribution of Branches
The bank covers by its activities all the important trading and commercial centers of the country. As on June 01, 2010 it had 82 branches and five SME services centers within Bangladesh. All the branches are equipped with computers in addition to modern facilities, logistics and professionally competent manpower.
Domestic Branches of the Bank
The branches of the Bank cover all tile important trading and commercial centers in Bangladesh. At present it has 82 branches within Bangladesh. All the branches are equipped with computers in addition to modern facilities, logistics and professionally competent manpower. Steps are underway to open new branches in important locations in the country during June 2010.
Information Technology Structure
Present information technology structure of IFIC Bank
- Computer System
- Computerized Services
- Future Computerization
A. Computer System
- Computerized Branches: 82 out of 82(i.e. 100%) Branches are computerized throughout the country.
- Local Area Network: All Branches (i.e. Motijheel, Federation, Dhanmondi, Gulshan, Moulvi Bazar, Narayanganj & Agrabad) are operating in Local Area Network environment.
- Banking Software: Currently 64 LAN Branches are using BexiBank 4000+ and rests of the Branches are not online system.
- Operating System: Most of our Branches, which are using BexiBank 4000+, are operating their Computer System in DOS (Disk Operating System). Branches, which are operating in LAN environment, are using Windows 2000, Winxp or Novell NetWare operating system.
- Central Backup System: Presently Information Technology & Computer Division of Head Office is maintaining an Office Central Backup System for all the Computerized Branches and Division of Head Office of our Bank.
B. Computerized Services
- Tele Banking (Computerized Phone Banking): Our Banking has implemented Computerized Phone Banking technology in 82 Branches (i.e. Motijheel, Federation, Dhanmondi & Gulshan).
- SWIFT Network: Presently our International Division of Head Office is operating their Foreign Trade related transaction through SWIFT Network.
- Electronic Mail: 82 Branches has (i.e. Motijheel, Federation, Gulshan, Dhanmondi, Narayanganj & Agrabad) are using Email facility for international and internal correspondence. In future all AD Branches will be brought under Email facility.
- Home Banking: Our Bank is currently engaged in implementing this new service for Bank’s high net-worth selected business clients.
C. Future Computerization Expansion Plan
- Inter Branch Connectivity: Our major plan in the IT sector is to ensure Inter Branch Connectivity of selected major Branches (i.e. Motijheel, Federation, Dhanmondi, Gulshan, Moulvi Bazar, Narayanganj & Agrabad) under Wide Area Nerwork (WAN) facility to offer our customers “Any Branch Banking” facility.
- Visa Card: Visa Card already established.
- Metropolitan Area Nerwork/Head Office Computerization: Network implementation among Divisions (i.e. Special Project Division, Credit Division etc.) of Head Office is in under consideration.
D. At present now, all the branches are uses MISYS software system. This software system bring from the USA.
Management Structure
The thirteen members of the Board of Directors are responsible for the strategic planning and overall policy guidelines of the Bank. Further, there is an Executive Committee of the Board to dispose of urgent business proposals.
Besides, there is an Audit Committee in the Board to oversee compliance of major regulatory and operational issues.
The CEO and Managing Director, Deputy Managing Director and Head of Divisions are responsible for achieving business goals and overseeing the day to day operation.
The CEO and Managing Director is assisted by a Senior Management Group consisting of Deputy Managing Director and Head of Divisions who supervise operation of various Divisions centrally and co-ordinates operation of branches.
Key issues are managed by a Management Committee headed by the CEO and Managing Director. This facilitates rapid decisions.
There is an Asset Liability Committee comprising member of the Senior Executives headed by CEO and Managing Director to look into all operational functions and Risk Management of the Bank.
Risk Management
In view of the global recognition towards need of an effective risk management and control systems in financial sector, IFIC Bank being cognizant of the importance of the subject, has prepared and implemented the following policy guidelines on Risk Management:
• Credit Risk Management
• Asset Liability Management
• Foreign Exchange Risk Management
• Internal Control & Compliance
• Prevention of Money Laundering
Human Resource Development & Research
Human Resources Development is focused on recruitment and in-house training for both on the job and off the job Bank staff members through the Bank’s Academy. IFIC Bank Academy – the oldest institution in the private sector – was conceived of as an in-house training center to take care of the training needs of the Bank internally.
The Academy has a good collection of books, journals and magazines. The books are mainly on subjects like Banking, Economics, Accounting, Management and Marketing etc. As on December 31, 2009 the library had 6,861 books/titles. The books are issued to the employees usually for one month.
Main training activities consist of in-depth foundation programmers for entry level Management Trainees. Specialized training programmers in the areas like general banking, advance, foreign exchange, marketing and accounts etc. are also organized by the Academy depending on need.
Frequently outreach programmers are organized to meet demand for new and specialized skills.
During its 26 years of existence, Academy not only conducted courses, workshops and seminars as required by the Bank, but it also organized training programmers for the Bank of Maldives, Nepal Bangladesh Bank Limited and Oman International Exchange LLC. In addition, Academy has also the credit of organizing system of Bank of Maldives.
In addition to conducting courses internally, The Academy also selects candidates for nomination to various courses conducted by distinguished training organizations in the country including BangladeshBankTrainingAcademy and Bangladesh Institute of Bank Management.
The Academy also re-designs its courses, programs etc, regularly to med the requirement of new skills arising out of various directives, guidelines of the Central Bank and significant changes in the banking sector from time to time
Products & Service
Auto Loan
| Rolls Royce, Ferrari or a Cadillac that’s for one born with good luck. For the one’s who dream to make their own luck? Come to IFIC for your desired Car. We will make it come true whether it’s a Maruti or a Mercedes. Getting the Loan: / How can you get the Loan? Loan Size: / How much Loan can you get? Loan Period: / What is the period to repay your Loan? Interest rate: 15.50% p.a *Conditions apply |
Consumer Loan
| Life is complex as it is. IFIC makes your life-style easy and comfortable with the Consumer Durable Loan. So avail the easy facility offer. Getting the Loan: / How can you get the Loan? Loan Size: / How much Loan you can get? Loan Period: / What is the period to repay your Loan? Interest rate: 16.50% p.a Processing Quick Processing Immediately. *Conditions apply. |
Easy Lone
| No limits for personal needs, needs are endless. Our EASY LOAN is to serve your personal financial needs. Just walk-in to any of IFIC’s branch and avail your EASY LOAN. Getting the Loan: / How can you get the Loan? Loan Size: / How much Loan can you get? Loan Period: / What is the period to repay your Loan? Debt Equity Ratio: 70:30 Interest rate: 16.50% p.a Processing *Conditions apply Easy Loan |
Porua Loan
| A good education is the foundation for a successful life. IFIC is offering the opportunity to students to pursue higher education opportunity with the loan facility. Getting the Loan: / How can you get the Loan? Loan Size: / How much Loan you can get? And Maximum TK. 3Lac (without collateral security) Loan Period: / What is the period to repay your Loan? Processing *Conditions apply |
FFlex Flexi Loan
| The demands and uncertainties of life getting you down. Here is the answer. Come avail yourself IFIC’s Flexi Loan, to turn the uncertainties of life to a certainty you can control. Getting the Loan: / How can you get the Loan? FLEXI LOAN for Loan Size: / How much Loan can you get? Loan Period: / What is the period to repay your Loan? Processing *Conditions apply |
Thikana Loan
| A man’s home is just not his castle, it’s more than an asset, and it’s an investment for his future generation. IFIC’s Thikana Loan helping you find you’re ADDRESS. Your life’s Satisfaction First. Getting the Loan: / How can you get the Loan? Loan Size: / How much Loan you can get? Loan Period: / What is the period to repay your Loan? Interest rate: 15.0% p.a Processing * Conditions apply |
Possession Loan
| For those people running a successful business from rented premises, IFIC BANK is there to finance you for POSSESSION LOAN. So your business can have its own Permanent Address. Getting the Loan: / How can you get the Loan? Loan Size: / How much Loan you can get? Loan Period: / What is the period to repay your Loan? Processing *Conditions apply. |
Peshajibi Loan
| Whether you are a Doctor/ Engineer/ IT professional/ Management Consultant or any other professional come find out about IFIC’s advancement Peshajeebi Loan that lays the foundation for your career elevation. IFIC works for your professional Satisfaction. Getting the Loan: / How can you get the Loan? Loan Size: / How much Loan can you get? Loan Period: / What is the period to repay your Loan? Processing *Conditions apply |
Retail Loan
| To the small entrepreneurs who know their trade yet feel frustrated by the lack of money to get a bigger share in the marketplace. IFIC BANK understands their problem and believes that financial support at the right time can take them to (their desired) right place. Getting the Loan: / How can you get the Loan? Loan Size: / How much Loan you can get? Loan Period: / What is the period to repay your Loan? Processing *Conditions apply. |
Pension Savings Scheme
Empower yourself for a secure and prosperous future with IFIC PSS. Partnership for a prosperous and secure future. Monthly Installment 3 Years Scheme 5 Years Scheme Tk.500 Tk.20781 Tk.36266 Tk.1000 Tk.41502 Tk.72532 Tk.2000 Tk.83125 Tk.145064 Tk.3000 Tk.124687 Tk.362661 Tk.5000 Tk.207812 Tk.381340 Tk.50000 Tk.2078118 Tk.3813399
Extra Benefits: |
RATES OF INTEREST ON DEPOSITS
| As per decision of the management, the rates of interest on deposits are being revised with effect from 01.03.2007 | |
| Types of Deposit | Deposit Rates |
| Savings Bank Deposit (SB)
| 5.5% |
| Short Term Deposit (STD): Less Than Tk. 1.00 crore Tk. 1.00 crore and above but less than Tk. 5.00 crore Tk. 5.00 crore and above but less than Tk. 10.00 crore Above Tk. 10.00 crore Bank to Bank
| 4.0% 4.5% 5.0% 6.0% 2.5% |
2.2
IFIC BANK’S MAJOR FUNCTIONAL DEPARTMENTS & THEIR ACTIVITIES
All this products and services are implemented properly with the help of many departments. The functions of those departments are:
General banking Division
A wide range of products and services different type of deposits such as SB, CD, FDR etc are offered by this department. Local private banks is biggest threat a they offer higher interest rate and better services.
General Credit Division
A wide range of products and services, such as different type of loans are offered by this department. It faces continuous challenge from the local private banks, which mainly specializes in the consumer banking. As a result, it has to develop new products and services to ease the competition on a continuous basis. The approval is mainly based on the risk analysis of the corporate clients done by the Corporate Banking division.
Finance and Accounts Division
This department performs the following activities:
Sources of finance
Administration, audit and back office operation.
Salary & Provident Fund
Taking care of taxation and financial control of the Bank.
Decision making related to administrative activities
Recovery Division
Recovery of stuck-up loans is a major concern for the bank. This division helps general credit and project finance divisions to recover the loans and take legal action against those creditors. Some time there is some usual recovery. Recovery from written off loans goes to income account of the bank.
Project Finance Division
IFIC Bank’s corporate clients mainly comprise the top local and multinational companies operating in Bangladesh. The main objective of this department is to build and maintain positive relationships with their clients. As a result, each and every company is assigned a Relationship Manager, who maintains regular contacts with clients. Moreover, this department offers the following facilities to its clients:
Project Finance.
Syndicated Loans.
Bonds and Guarantees, etc.
Treasury Division
The foreign exchange and money market operation of the IFIC Bank is broad. Exotic currencies happen to be one of its specials areas of strength. A 24 hour-service is provided to customers in Bangladesh through the Bank’s network of dealing centers placed in the principal of the world. The Bank’s treasury specializes in offering solutions to who wish to manage interest rate and currency exposures that result from trade, investment and financing activities of other dynamic economies of the region.
Internal Control & Compliance
Banking involves high risk, the presence of effective internal control system, corporate governance, transparency and accountability is vital to ensure smooth operation of the bank. The internal control is the process affected to provide reasonable assurance for the achievement of the objectives of the bank, the reliability of financial reporting and compliance with applicable laws, regulation and internal policies.
Audit & Inspection Division
This division helps the bank accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. It also assists development of the process for smooth operation of various department and branches, detect major deficiencies in the branches, review the activities and organizational structure of the internal audit function.
Foreign Trade Division
All the overseas branches are under the control of this division, the regularly communicate with those branches and solve problem of those branches.
Marketing Division
It basically handles all promotional campaign, branding both consumer and corporate products and services for IFIC bank.
Law Division
In Bangladesh local banking laws regulate and rules set by the Ministry of Finance and Bangladesh Bank is handling by this division. Law division has to take care of are:
Any kind of legal issues
Compliance advisory service
Personal Division
It works with the administrative issues and supervise internal work environment. It also encourages its staff to conform to an internal culture of ethical behavior and sensitivities to the culture and religion of the country.
Human Resource Development Division
Human Resource Development is focused on recruitment and in house training for both on the job and off the job bank staff members through the Bank’s Academy. IFIC Bank Academy- the oldest institution in the private sector was conceived of as an in house training center to take care of the training needs of the Bank internally. One of our four major missions 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.”
Panning, Research & Statistics Division
They study the market through which they find out which product has demand in current market, plan for new product features and they collect statistical data for future use.
Computer & IT Division
Now all the branches were under similar automated platforms with upgraded software applications to offer all the critical banking features. IFIC Web site has been launched for the convenience of the customers, where all the activities and information are constantly being posted and undated. This gives all technical support to all branches and Head Office.
Milestones in the Development of IFIC Bank
1976 – Established as an Investment & Finance Company under arrangement of joint venture with the Govt. of Bangladesh.
1980 – Commenced operation in Foreign Exchange Business in a limited scale.
1982 – Obtained permission from the Govt. to operate as a commercial Bank.
1983 – Setup its first overseas joint venture (Bank of Maldives) on the Republic of Maldives.
– Commenced operation as a full-fledged commercial Bank in Bangladesh.
1985 – Set up a joint venture Exchange Company in the Sultanate of Oman.
1987 – Set up its first overseas branch in Pakistan at Karachi.
1993 – Set up its second overseas branch in Pakistan at Lahore.
1994 – Set up its first joint venture in Nepal for banking operation.
1999 – Set up its second joint venture in Nepal for lease financing.
2003 – Bank celebrated its 20th founding anniversary.
– Overseas Branches in Pakistan amalgamated with NDLC, to establish a joint venture Bank: NDLC-IFIC Bank Ltd. subsequently renamed as NIB Bank Ltd.
2005 – Acquired MIEYS solution for real time on- line banking application.
Core Risk Management implemented.
2006 – Corporate branding introduced.
– Visa principal and plus (Issuer and require) program participant member obtained.
2008 – Observing 25th Anniversary of Customer Satisfaction.
2009 – 64 Branches offering Real Time On-line banking faculty.
2010 – All Branches of IFIC Bank is operating under state –of –art world class Real Time On-line banking Solution.
Recommendation
In order to get competitive advantage and to deliver quality service, top management should to modify the services.
Rectify the Existing Problems
As there is no classified loan, branch should monitor the loans & advances closely to avoid classification in future.
Narayanganj Branch should extend with their all out effort to increase the credit portfolio and to procure more low cash deposit, increase non funded business so as to minimize dependency on interest earning from IFIC Bank general account and to improve overall business performance of the branch to maintain earning.
Narayanganj Branch should set up more CC camera in the branch to hold more control of manager in the branch. It can install CC camera in accounts department and clearing department as it is an important past of the branch and it is not always possible for the manager to visit all departments which has become important.
Narayanganj Branch can contact with the existing customers to make the dormant accounts operative.
When a joint stock company comes to open an account if it’s an existing one, the account opening officer should ask the copies of the Balance Sheet and Income Statement. These will reflect the financial growth of the company and its soundness but in practice bank do not do this. If they have all these that will help them to examine money laundering risk.
There are numbers of new private banks and some have already activated with their extended customer service pattern in a completely competitive market. Where as IFIC Narayanganj branch is far behind. They are not competitive in customer service because the officers do not behave in professional manner in fort of customer. Some time they are late in there service, which ultimately disturbs the respective customer.
Narayanganj branch personnel should train up about all sort of information regarding SWIFT and its service. Due to lack of proper knowledge about the operation procedures and services provided to the customers by SWIFT, certain customers are facing problem, as they have to wait for certain time to get service as there was one officer know about the procedure of SWIFT. He is not fully independent of handling SWIFT. Official training is the solution to this problem. For customer’s convenience in Foreign Exchange Department of IFIC Bank Ltd. should provide more personnel to deliver faster services to their honorable customer.
Now a day conventional banking concept is outmoded. Now banks are offering more ancillary services like credit card, online services and many others. IFIC Bank Ltd. should differentiate its services through adopting the modern facilities and implementing in the branch level.
To deliver quality service top management of this breach should try to mitigate the gap between customer’s expectation and employee’s perception and customer’s convenience should give priority.
Administrative cost of this branch is on the medium side, which has a major impact on profitability. Te manager should bring down the administrative cost and take all effective steps, strategy and action plan to reduce the cost at the desired level.
IFIC Bank should always monitor the performance of its competitors in the field of Foreign Trade.
Without proper knowledge in different laws, rules which set by Bangladesh Bank efficiency of employees cannot be optimize. Bank can arrange training program on these subjects and can test its employees which will improve their qualities.
IFIC Bank Ltd. should focus on their promotional activities. They should also focus on the marketing aspects to let customers know about their products and offerings and more promotion is should be given to attract new customer.
IFIC Bank Ltd. must develop electronic banking system to moderate the service. Technological advantage of a bank ensuring its competitive edge in the market place which can only be achieved by improved technology, efficient manpower and better services. If bank get more market share through all these than it will reduce operating cost and generate new revenue. The bank can offer to its customer better service if all of its departments are computerized and incorporated under local area network (LAN).
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 increase higher productivity and it attract big clients. It can introduce ATM service again in all branches which will bring speed in banking services.
Bank is providing both internal and external training for the officers but bank should be scrupulous about the training facilities so that officials can implicate this in their job. People are very choosy about environment now a day, so bank premises should be well decorated and IFIC Bank Ltd. should look into the matter very seriously as well. Side by side it will give customers better felling about the bank.
Implementation
Some other important factors that should be focused on the development process:
Time consumed at service level should be minimized at optimum level.
Evaluate customer’s needs from their perspective and explain logically the shortcomings.
Customer’s convenience should receive priority over other.
Improve office atmosphere to give customers better feeling.
Use of effective management information systems.
Use appropriate techniques in evaluating customer need professionally.
To deliver quality service top management should try to mitigate the gap between customer’s expectation and employee’s perception.
Comments:
The bank can offer to its customer better service if all of its departments are computerized and incorporated under local area network (LAN).
At the entry position the bank should enroll more expertise people to augment quality services.
Now a days-conventional banking concept is outmoded. Now banks are offering more ancillary services like credit card, on line services and many others. IFIC Bank Ltd. should differentiate its services adopting the modern facilities.
Bank is providing both internal and external training for the officers but bank should be scrupulous about the training facilities so that official can implicate this in their job.
People are very choosy about environment now a day, so bank premises should be well decorated and IFIC Bank Ltd. should look into the matter very seriously.
Bank should provide advances towards the true entrepreneur with reconsidering conventional system of security and collateral, moreover, the whole process should be completed within an acceptable time.
Conclusion
From the learning and experience point of view I can say that I really enjoy my internship at IFIC Bank of Bangladesh Ltd. From the very first day, I was confident that this 3 months internship program at IFIC Bank Ltd. of Bangladesh will definitely help me to realize my future carrier in the job market. Performance analysis of a department of a bank is not so sufficient to measure and express perfectly within this short time of my internship period. But it is a great opportunity for me to get use to with the operational environment of commercial banking of IFIC Bank. I have tried by soul to incorporate the research report with necessary relevant information in my report. Few loyal committed customer bases, lack of modern and effective technology or facilities, not enough skilled employees in some sector, considering all of these very important factors, IFIC Bank should always try to improve their service level in every term.
The marketing department should think freshly about their marketing objectives and practices. Rapid changes can quickly make yesterday’s winning strategies out of date. As a developing private bank in Bangladesh, IFIC Bank shouldn’t allow their client to get dissatisfied with their service. They have their competitors who actively striving to take the advantages in every side. During the course of my practical orientation, I have tried to learn the practical banking to relate it with my theoretical knowledge, what I have gathered and going to acquire from various courses.
BIBLIOGRAPHY
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