Marketing Bank Products of National Credit and Commerce Bank Limited

Background of the Report:    

This Internship report has prepared as a requirement for the completion of the BBA Degree of School of Business, Independent University Bangladesh. IUB has provided us, the fresh graduates the wonderful opportunity to learn about the real world through real time working environment. These experiences could never be gathered from books and are priceless. The  course BBA 499 will help us to progress in to our working career. The requirement of this course  is to work in an office for three months and for the completion of the course, at the end of the three months period a report has to be submitted on the experiences gather. Different types of  reports can be prepared. I have chosen to do a working report titled “Marketing Bank Products; Profit Maximization and CSR Considered “ A Look from NCC Bank Ltd.

Objective

The objectives of this internship report are as follows:

   Primary Objective

The main objective of the report is to make an investigation on the various service dimensions

provided by National Credit and Commerce Bank’s Consumer Banking Division in Bangladesh.

   Secondary Objective

   To present a general idea of General Banking Procedure of NCCBL

   To briefly observe the banking environment of Bangladesh

Explore the types of product & service provided by NCCBL

   To provide a brief idea about my duties in NCCBL

Scope of the Study:

This report deals with the general banking procedures of NCCBL, banking law followed and  practiced by NCCBL, and finally the duties that I performed during my internship period. The  study will allow learning about how the process of general banking actually takes place in a bank,how it happens in a daily basis, what type of marketing bank products with CSR considered  they follow for their organization, how they maintain a good quality and smooth banking environment, and so on. But, the most important and interesting scope provided by this report is the opportunity of interacting with all the wonderful and dynamic employees working here. Moreover, this report will help to understand how a bank works in real life in Bangladesh. This report may also act like a guide in revealing some of the important aspects of NCCBL.

Methodology:

All the information incorporated in this report has been collected both from the primary sources and as well as from the secondary sources.

Primary Sources: . The methods that were used to collect the primary data are as follows:

   Informal discussions with the officials of NCCBL

   Direct observation while working in the bank

Secondary Sources: 

 To clarify different conceptual matters, internet and different articles published in the journals & magazines have been used. The Secondary Sources are:

•    Annual Reports of NCCBL
•    Other published documents and reports of NCCBL
•    Internet browsing
•    Website of Bangladesh Bank & NCCBL
•    Various brochures on the products and services offered by the bank
•    Publications of Bangladesh bank

Limitation:

First of all, information in the bank is confidential and critical. The main barrier in preparing this report was data confidentiality. Though I saw the bank’s internal procedure that is being used in processing and evaluating any documentary operation, still I was advised not to disclose that in my internship report. Because of the data confidentiality, they did not even disclose many critical internal issues of the organization.

Limited time was one of the most faced obstacles while preparing this report. The duration of internship is only three months, which is very insufficient to understand a broad sector like banking. Due to time shortage, details of many aspects of the general banking of NCCBL were stayed unleashed. 

Company Profile:

NCC Bank Limited (NCC) started its business in Bangladesh in 1985 as a financial institution.

The company operated up to 1992 with 16 branches and thereafter with the permission of the Central Bank converted in to a full-fledged private commercial Bank in 1993. In 2008 Bank entered into a joint venture with TMMS– an NGO working for empowerment of women folks of  the country under DFID funded projects. Now NCC can reach remote area of Bangladesh by using 250 branches of TMSS. NCC has managed impressive growth in loan portfolio, total assets and fee income while maintaining capital adequacy, asset quality, sound management and profitability. NCC has diversified its business over the years and offers different types of  commercial banking, retail, treasury and capital market services. The bank has significant non-

funded income (40% of total operating income). NCC has achieved five years Cumulative Annual Growth Rate (CAGR) of 29.24% in loans & advances. The bank achieved average ROE and ROA of 25.53% and 1.63% respectively in the last five years, which is quite impressive in the industry. We expect the bank to continue these levels in future years.

Historical Background of NCC Bank Ltd.:

The National Credit and Commerce Bank Limited (NCCBL) was primarily initiated its operationin 25th November 1985 as an investment company under the name of National Credit Limited (NCL) to create new employment opportunities through industrialization and expand the business activity.  It was incorporated in Bangladesh as a banking company under the Companies Act .1994. On 17th May of 1993, it converted in to a full-fledged scheduled private commercial bankwith the approval of Bangladesh Bank and renamed/emerged as NCCBL. The company operated its function up to 1992 with sixteen (16) branches and it is now working with eighty two (82) branches nationwide. The sponsors of the new bank consisted of 26 (Twenty six) Members (Businessmen) sponsored it as a public limited company under the Companies Act 1913 with an authorized capital of taka 300 million. The bank is listed in the Dhaka and Chittagong Stock Exchanges as a publicly quoted company for its general class of shares. The Bank raised its paid up capital from Taka 195 million to Taka 390 million during the year through IPO of which sponsor directors/ shareholders equity stood at Taka 198 million. With the increase of paid up capital to Taka 390 million, the capital base of the Bank has become strong. Over the years, National Credit and Commerce Bank Limited has built itself as one of the pillars of Bangladesh’s financial sector and is playing an essential role in the extending the role of the private sector of the economy. NCC Bank is now positioned to best suit the financial needs of its customers and make them partners of progress.

Mission:

To mobilize financial resources from within and abroad to contribute to Agriculture’s, Industry & Socio-economic development of the country and to play a catalytic role in the formation of capital market.

Vision:

To become the Bank of choice in serving the Nation as a progressive and Socially Responsible financial institution by bringing credit & commerce together for profit and sustainable growth.

Head Office and Branches of NCC Bank Ltd.:

7-8, Motijheel C/A, Dhaka – 1000,

Bangladesh

PABX: 9561902-4, 9566283, 9563981-3

Fax: 880 2 9566290

Cable: NATCREDIT DHAKA

e-mail: nccbl@bdmail.net

Telex: 642821 NCL BJ

 Hierarchy and Chain of Command:

In NCCBL, it follows a straight forward up-down hierarchy and chain of command. Board of Directors is at the top most position and Chairman acts as Group head. Along with that Vice Chairman, Managing Directors, Deputy Managing Directors, Senior Executive Vice Presidents, Executive Vice President, Senior Vice President, Vice President, Senior Assistant Vice President, and Assistant Vice President of NCCBL are in the top level management. Then, Senior Principal Officer, Principal Officer, Senior Officer, Officer Grade 1, Officer, and Junior Officer Assistant Officer are in the mid-level management. 

Decision Making Process:

The decision making process is quite centralized. Although most of the time decision comes from top management but it includes the mid-level managements in that process. The management of  NCCBL believes in team playing rather than maintaining a strict hierarchy and chain of  command which make  can   easy workflow.

Banking Law of Bangladesh Bank:

A set of acts, laws, regulations, and guidelines have been enacted and promulgated time to time since Bangladesh Bank’s establishment which helped Bangladesh Bank to perform its role as a central bank particularly, to control and regulate country’s monetary and financial system.

Important laws and acts:

   BankCompanyAct,1991

   TheNegotiableInstrumentsAct,1881

   TheBankers’BookEvidenceAct,1891

   Foreign Exchange Regulations Act, 1947

   Financial Institutions Act, 1993

   BankDepositInsuranceAct,2000

   MoneyLoanCourtAct,2003

   Micro Credit Regulatory Authority Act, 2006

   Money Laundering Prevention Act, 2009 and

   Anti-terrorism Act, 2009

  Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972)

Banking Law of NCC Bank Ltd.:

NCCBL complied with the requirements of following regulatory and legal authorities given by Bangladesh Bank:

 The Bank Companies Act, 1991;

 The Companies Act, 1994;

 Rules and Regulations issued by Bangladesh Bank;

 The Securities and Exchange Rules 1987, The Securities and Exchange Ordinance 1969, The Securities and Exchange Commission Act, 1993, The Securities and Commission (Public Issue) Rules 2006;

   The Income Tax Ordinance, 1984;

   The VAT Act, 1991;

   Other Laws & Regulations as applicable.

On the other hand, regulations and guidelines broadly include Bangladesh Banks’ Regulations and Foreign Exchange Regulations. As a result laws are adequately followed by NCCBL in every aspect of its operations.

Core Regulations:

   No loan for the Directors against their share in the banks

   Loan ceiling: Maximum loan of 35% of capital

   Single borrower exposure

   Margin on LC: 25% of the Invoice value

   Division of department.

Products » Deposit Products

Current A/C

Savings Bank Deposit A/C

Special Notice Deposit (SND) A/C

Term Deposit A/C

Premium Term Deposit A/C

Instant Earnings Term Deposit A/C

Special Savings Scheme

Special Fixed Deposit Scheme

NFCD

RFCD

Money Double Program

 Loans and Advance Products

Working Capital Financing

Commercial and Trade Financing

Long Term (Capital) Financing

House Building Financing

Retail and Consumer Financing

SME Financing

Agricultural Financing

Import and Export Financing

NCC Bank Visa Credit Card

NCC Bank has launched its Visa Credit Card Service on August 22, 2005 and we are offering three types of cards which are Visa Classic, Visa Gold (Local) and Visa Dual Currency Card. Use of additional 142 ATM’s Booth and 600 POS of Dutch-Bangla Bank. (Globally and Locally). Since then were able to reach 5000 cards, both corporate and general banking systems.

Commitments:

• Dedicated service at your door steps
• Sporty
• Faster service
• Security of cards
• Team work
• Patient at our services

Other followings services:

• Lowest interest rate in the country (2% per month)
• Dual Currency Visa Credit Card
• One supplementary card free of cost for lifetime (Spouse only)
• Treasure point facilities including foreign part
• Shortest process for Dual Currency card, only 24 hours
• Roaming Mobile Phone bill payment facilities

Wide Range of Acceptance

NCC bank Visa Credit Card is accepted at over 5,000 merchant outlets around the country. Our wide range of merchants include Hotels, Restaurants, Airline and Travel Agents, Shopping Malls, Hospitals, Jewellery Shops, Mobile Phone and Internet Service Providers, Petrol Pumps and many more! Now NCC Bank Visa Credit Cards can also be used at all 142 ATM’s Booth
and 600 POS (Point of Sale) of Dutch-Bangla Bank.

Instant Cash Advance

You do not need to carry cash any more if you have a NCC Bank Credit Card. You can withdraw cash up to 50% of your credit limit from any ATM across the country that shows Visa logo.

Credit Facilities

NCC Bank Visa Credit Card offers you free Credit facility up to 45 days and minimum of 15 days without any interest (Purchase only).

Supplementary Card

NCC bank Visa Credit Card holder can also enjoy spouse Credit Card free of cost for lifetime and issue more Supplementary card.

Reward Programs

As a NCC Bank Visa Credit Card holder, you will accumulate Treasure points for every purchase made by using Visa Credit Card. For every Tk. 50 and USD 1 spent on your Credit Card, you will earn 1 and 1.5 Treasure Point accordingly and be closer to redeeming the reward of your choice.

Flexible Payment Option

With the NCC Bank Visa Credit Card, you have the convenience to pay as little as 5% of your outstanding (or Tk. 500, whichever is higher) on the Card account every month, thus having the power and flexibility to plan your payments.

Auto-Debit Payment Facility With the NCC bank Credit Card, you no longer have to stand in long queues for paying your monthly bill. You can pay your monthly bill through NCC Bank Account by instruction Auto-Debit.

Corporate Visa Credit Card

Corporate is characteristic of individuals acting together; “a joint identity”; “the collective mind”; “the corporate good”.

The new dimension of NCC Bank Visa Credit Card is Corporate Credit Card which has already started to benefit the Corporate Houses.

Corporate Visa Credit Card

Corporate is characteristic of individuals acting together; “a joint identity”; “the collective mind”; “the corporate good”.

The new dimension of NCC Bank Visa Credit Card is Corporate Credit Card which has already started to benefit the Corporate Houses.

Objective of Corporate Customers

Balance Transfer Facilities

If anyone holds other Bank Credit Card, then NCC Bank will issue a credit card with equivalent limit and will issue a pay order by debiting card A/C from balance transfer option for the equivalent amount of total outstanding in order to full settlement and cancellation of other Bank A/C.

Remittance Products

            *Special Interest rate on Savings and Term Deposit.

           * Wage Earners Welfare Deposit Pension Scheme.

All Services

Brokerage House

Member, Dhaka Stock Exchange Ltd.

Full Service Depository Participant

Treasury Service

Primary Dealer of Govt. Approved Securities

Remittance Service

Correspondence arrangement with more than 330 Financial Institutions all over the World.

For Wage Earners Remittance we have Agency arrangement with 12 reputed Exchange Housescovering  major Locations of our Expatriates.

Procedure of taking Loan

Profit Maximization:

The (short run) process by which a firm determines the price and output level that returns the greatest profit. There are several approaches to this problem. The total revenue–total cost method relies on the fact that profit equals revenue minus cost, and the marginal revenue–marginal cost method is based on the fact that total profit in a perfectly competitive market reaches its maximum point where marginal revenue equals marginal cost. NCCBL is one of the oldest Banks its age is over 27years. Company is not big as any multinational however company profit is greater comparing other local Bank in Bangladesh. So according to the Banking policy they maximize into different following sectors.

Profit Maximization in Different sector:

a)      Academic sector

b)      Housing company

c)      Real Estate

d)     New Paper

e)      Social Development

f)       Broker House

g)      Television Channel

h)      Political Parties

i)        Trading (retail/wholesale)

j)        Others 

Corporate Social Responsibility:

National Credit and Commerce Bank Limited is always aware of its social responsibility and consciously put its efforts to discharge this responsibility. Our last few years’ activities speak for us. For effective discharge of our CSR, NCC Bank Foundation was established a few years back. Under the banner of this foundation, we have continued our social works. The National Credit and Commerce Bank Ltd. (NCCBL) was incorporated in 1993.By the standards of most market economies; it is a relatively young bank. The Bank has 87 branches across Bangladesh, with its main office located in the capital, Dhaka. List of corporate social responsibilities of NCCBL are:

The NCC Bank outlines its corporate vision as including ‘serving the nation as a Progressive and socially responsible financial institution by bringing credit and Commerce together for profit and sustainable growth. It also discloses that its Mission is to ‘contribute to Agriculture, Industry and socio-economic development of the Country.

Bangladesh’s economy has suffered many blows in recent years due to consecutive floods and cyclones. Many of its people have been left homeless and jobless as a result and improving the supply of food and the provision of shelter and employment are amongst the government’s priorities. NCCBL operates within this particularly difficult social and economic environment. Support of small businesses and the agricultural sector by the banking industry is vital in the revival of the economy and the social fabric of the country. These issues are identified in the Bank’s annual report and a number of initiatives in this regard are disclosed. For example:

1) Under this section the Bank discloses its donations to various charitable, sporting and Educational organizations. It also provides details of educational scholarships it has provided to talented but distressed students. ‘Besides, financial supports were given to the children of our employees who obtained GPA-5.00 in S.S.C and H.S.C examinations of 2007 to encourage them and others .The Bank ‘distributed educational materials to poor students of Dahagram and Angorpata Enclaves.’ (p.30); and Books … ‘have been distributed to educational institutes of remote areas of the country on occasion.

2) SME-Financing and Agri-Financing: The NCC Bank discloses that it has diversified into the SME and Agro-sector on a priority basis. Specific mention is made of various projects within the agriculture industry made as part of boosting its activities in this sector. For example ‘We have extended credit facility to fisheries project as a part of our agro financing, Which received satisfactory response from the target group. ‘We have a separate SME wing to meet the demand of the small and medium entrepreneurs. Under this wing, we could disburse nearly Tk. 250.00 crore up to 2007. We are considering to extend credit facility under SME financing to cover a large number of potential borrowers to create new entrepreneurs. ‘We have a separate SME wing to meet the demand of the small and medium entrepreneurs. Under this wing, we could disburse nearly Tk. 250.00 crore up to 2007. We are considering to extend credit facility under SME financing to cover a large number of potential borrowers to create new entrepreneurs.

In regards to the NCCBL’s support of the agricultural industry, it also disclosed information about credit facilities it had extended to help people living in the northern part of the country. The Bank provided flexible terms in regard to finance supporting the cultivation of maize.

3) Other. The annual report contains information about various other contributions the NCC Bank has made to destitute groups within society. These contributions occur through a Foundation set up for such purposes, the NCC Foundation. With a view to assist destitute people in treatment, the Bank, through the Foundation extended subsidy to a City Hospital. Moreover, the Bank has distributed blankets to the destitute people of northern part of the country to help them in coping with severe cold Wave. Besides, blankets were also distributed in Sidr hit areas through Bangladesh Navy, Chittagong.

4)  NCCBL has a directorate numbering 14 people. Of these, three are women NCCBL, corporate social responsibility disclosures were also focused on supporting economically disadvantaged sectors specifically agriculture and smallbusiness. NCCBL Bank is also a strong supporter of disadvantaged constituents within its national community with a strong focus on programs providing assistance for destitute and underprivileged people. No mention in the annual report was made of environmental or sustainability issues, or of matters relating to the financing of industries utilizing child labor.

Duties Performed at Front Desk:

• I prepared and check Pay Order and Demand Drafts. I wrote the P.O, get signatures, insert  P.O into envelop and finally take signature of the client on the receive copy. I also check  date, pay to, amount and the account number.
• Likewise, I prepared demand draft and the process of P.O and DD is same. When the  payment is made outside of Dhaka then it is done
• I maintained the registers of P.O and D.D.
• I notified the customers about the requirements of opening an account.
• I had to maintain whether the requirements are fulfill or not by identifying their papers such as KYC, voter ID card, TIN, trade license, photographs, introduction, nominations.
• I had to receive inward mail which includes Demand Draft, Pay Order, L/C etc from thecourier service and make entry inward registered book. Moreover, I also gave all the required seals and signatures when the employees were busy with their own task. On the other hand, I also did outward registered mail.
• I did the balance inquiry and balance statement.
• I fill up the MoneyGram forms for the customers, received necessary documents regarding foreign remittance and get the signatures.
• I maintained the daily MoneyGram balancing with the assigned officer.
• Ø I also filled up and checked all the Deposit Account forms.

Duties Performed at Back Desk:

I also got some idea about the Flora Bank software.

   I worked in the cheque clearing sector.

• Ø I received cheques and put crossing, endorsement and clearing seal on cheques or warrant.
• Ø I assisted the authorize officer to scan the cheques images and make MS excel entry.

 Problems Identified:

During my internship in Banani  Branch of NCC bank, I have experienced various things in General banking section. Based on my personal observation I have cited below some findings which can be improved or taken care of.

• There is no specific desk for customer service (helping desk) and designated customer relationship officer in this branch. As a result, the personnel are unable to provide prompt

customer service.

The customers do not have any option to put their complaint in a specific complain Box.

• The employees are not sufficient in this section.
• The bank does not put much emphasis as well as they are not very concern on marketing of their products.
• There is a space for the customers to wait but in rush hour it seems inadequate and clumsy.
• There are some products which are not exercised properly by the officials.
• Lack of updated products is also a demerit of the general banking. The bank provides only  some limited traditional services.
• From the clients view introducer is one of the problems to open an account. It is a general problem in all commercial banks.
• The bank has only a few ATM booths but not in mention able places. Thus, customers have to use others bank’s ATM booth due to the unavailability which in turns incur  service charge for each transaction.

Recommendation:

I got the opportunity to work as an intern in Banani Branch for three months. During this time, I have encountered some practical exposures. It is quite difficult to recommend some suggestions to enhance the performance with my little experience. Nevertheless, I have observed some limitations regarding General banking division and some other things. Some necessary steps are recommended below on the basis of my observation and my knowledge.

• The bank should appoint a customer relationship officer in each branch and make a separate desk to give prompt and better services to their clients. In addition, they should also provide more personnel to improve their service and faster delivery.
• A complaint box should be kept in every branch so that the authority will come to know  the shortcomings of NCCBL and will be able to give them proper feedback based on that.  They should emphasize more on the marketing aspects through informing the customers about its products and offering services. For example, they can show their advertisement in various media live TV,
• News Paper, Internet and Billboard. This is the most effective way of grabbing the customer’s attention which in turns increases deposits.
• Low cost bearing deposit should be prioritized. At present, term deposit which is a highcost bearing deposit contributes a large proportion in total deposit.
• The branch should give adequate space for the customers to manage them in rush hour and it should be well decorated so that it gives the customers a positive image and comfort.
• The website of NCC bank should be more users friendly and informative. Moreover, it should be updated regularly.
• Ø To compete with other private banks it must have to introduce new products regularly and exercise those products to capture a large number of clients in the market.
• Ø More ATM booths should be established in different crucial locations.

Conclusion

In a developing country like Bangladesh the banking system as a whole play a vital role in the  growth of economic development. Hence, this sector contributes a lot towards socio-economic  development of a country.  Nowadays there are so many banks emerged in our country to serve the customers by providing lucrative financial products and better services. Among them, NCCBL is getting an advantage of being an old generation compared to newly established bank in the form of wide range of activities. But they must emphasis on some certain factors tocompete with their competitors. They have to adapt new technology as well as execute the task by experts. They must accept any failures and take it as a challenge to overcome.

It is obvious that establishment of right channel of banking, creates a successful network over the country which increases resources. NCCBL have expanded their network by opening 82 branches all over the country which indicates a positive signal. Although there are some shortcomings but it can be overcome through developing the product effectively, finding out the new opportunities from the market and respond promptly. I have worked in Banani Branch as an Intern for three months and I have really enjoyed my work from the very first day. During my internship, I have been placed specially in two sections; front desk and back desk. I have acquired some practical knowledge through dealing different things in these two sections. The practical exposure will eventually help me for further thinking of my career. Now I know how to be organized and do things systematically. Taking care of different items such as PO, DD, MoneyGram, Accounts, Cheques, etc. and moreover making sure that all my work procedures went smoothly have made me a much more organized person than what I used to be three months back. Likewise, dealing with such valued customers have also helped me to improve my interaction skills and helped me to gain confidence. Being in such a friendly work environment with so many helpful personnel has helped me to learn how to work in a team effectively.

Finally, I can conclude by saying that since its inception NCCBL is trying to make a distinguish  position in the place of customer’s mind and they made it through their solid brand image,  experienced and proficient employees. And it was indeed a pleasure doing my internship in NCC Bank Limited.

Reference

Took personal interview with the branch manager Mr.Shoaib Ahmed, regarding his experience in this Bank as a career.

• slam. Monirul. NCC BANK LIMITED 02 February 2010, BRAC EPL INVESTMENT  LIMITED. February 2, 2010.
• Sultana. Zarin, Officer, NCC Bank Limited. personal communication. August 9, 2011.
• Unknown. (n.d). BB Order & other Statutes. Bangladesh Bank. http://www.bangladesh–
• bank.org/aboutus/regulationguideline/lawsnacts.php, August 3, 2011
• Unknown. (n.d). Deposit Rate. NCC Bank Limited.
• http://www.bracepl.com/brokerage/research/1303901475NCC%20Bank.pdf, August 10,
• Unknown. (n.d). NCC Bank Limited. https://www.nccbank.com.bd/index.php, July 30, 2011
• Unknown. (n.d). Regulation & Guidelines. Bangladesh Bank. http://www.bangladesh– bank.org/aboutus/regulationguideline/guidelist.php, August 3, 2011