Overall Banking System of NCC Bank Limited

Main purpose of this report is to analysis Overall Banking System of NCC Bank Limited, here focus on to know the different aspects of the banking sector and to evaluate how bank is performing in Export and Import sector. Report also discussion to acquire the knowledge about the credit system of the bank and observe the bank’s involvement in the foreign exchange business, formalities, and activities of the letter of credit (L/C). Overall focus the growth and development of banking system.

Objectives of the report:

Though the main objects of our is to prepare ourselves in such manner as though we can equip ourselves with the practical field and as well as we will be able to know the different aspects of the banking sector & to evaluate how bank is performing in Export and Import sector. Without this we have various objectives that are follows:

• To know the work environment & organizational behavior of the bank.
• To know about the organizational framework of the bank.
• To gather comprehensive knowledge on general banking system.
• To acquire the knowledge about the primary forms of entrance in the international trade i.e., the export-import.
• To acquire the knowledge about the credit system of NCCBL.
• To observe the bank’s involvement in the foreign exchange business, formalities, and activities of the letter of credit (L/C).
• To focus the growth and development of NCCBL.

GENERAL OVERVIEW OF NATIONAL CREDIT AND COMMERCE BANK LIMITED (NCCBL)

National Credit and Commerce Bank Limited is one of the fastest growing bank among all the Private Commercial Banks (PCBs) in Bangladesh. Prior to conversion into a schedule commercial bank, National Credit Limited (NCL) was incorporated as public limited investment company in Bangladesh on 18^th November 1985. It made its journey with a modest beginning on 25^th November 1985 at its registered office and first branch at 7-8 Motijheel commercial area, Dhaka-1000. The initial authorized capital of the company was Taka 30 cores. A new era of opportunities in the field of financial activities was opened for the business. NCL made a careful journey and mentioned its successive growth for new years with its qualified processional management under most unpredictable, unregulated uncertainties and limitations.

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 with paid up capital of taka 39 cores to serve the nation from a broader platform.

NCC bank is a progressive commercial bank is private sector in Bangladesh. It creates new opportunities for its clients. It gives customize services and maintains harmonies banker-client relationship. It contributes towards formation of national capital, growth of saving and investment in trade, commerce and industrial sector. It provides different types of commercial banking services to the customers of all strata in the society within the stipulation laid down in the Bank Companies Act-1991, rules and regulations framed by Bangladesh Bank from time to time.

National Credit and Commerce Bank Limited emerged as bank in the country on 17^th May 1993 out of great turbulent situation encountered by erstwhile National Credit Limited. However, the institution survived the ordeals and came out as full-fledge commercial bank.

During last 12 years of its operation NCCBL has acquired commendable reputation by providing sincere personalized service to its customers in a technology-based environment.

Deposit services:

Current Deposit Account (CD):

• No interest is paid against this deposit.
• Depositor may withdraw money as and when required. Notice is not required.
• Client is to pay incidental charge twice in a year as per bank prescribed rate.

Savings Bank Deposit Account (SB):

• SB deposit attracts interest.
• Client is not at large to withdraw deposit without prior notice.
• Interest is suspended if withdrawal rule is broken.
• Withdrawal rule is consisted of number of withdrawal per week/ month and percentage of balance.

Special Notice Time Deposit Account/ Short Term Deposit Account (STD):

• By nature this deposit is not featured with issuance of chequebook.
• Depositor requires serve 7 days prior notice to transfer fund to his checking deposit account.
• STD account allows interest on daily product basis.

Fixed Deposit Account (FDR):

• This product is very much popular in banking arena for surplus spending unit.
• This deposit is one way trafficking system i.e. deposit is received for once for specific period and refunded with up-to-date interest on maturity.
• Premature encashment may resultant loss of interest.

Credit Service

Banking business essentially involves lending. In fact deposits are accepted for lending or investment. It interest rate ranges from 10% to 15%. NCCBL provides loans and advances in the following sectors:

• Staff Loan HB (House Building)
• Staff Loan Car
• Security Over Draft (SOD) against Financial Obligations (FO)
• SOD General
• Loan against Trust Receipt (LTR)
• Packing Credit
• Lease Financing Scheme (LFS)
• Hire Purchase
• Payment against Document (PAD)
• Cash Credit Hypothecation
• Loan General
• Foreign Documentary Bill purchase (FDBP)
• FDBP (Clean)
• Export development Fund (EDF)
• House Building (Res.)

Secured Overdraft (SOD):

• Client may get bank credit in the form of SOD against FDR/ Savings Certificate/ ICB Unit Certificate.
• Loan process time is very negligible.
• Interest rate is very much competitive. SOD against FDR is allowed @ 12.00% in some of the cases.
• Client requires arrange necessary lien mark on the instruments in favor of the bank.
• SOD facility is continuing nature. Client may transact freely within the limit and validity of the credit.

Loan General-Secured:

• This is one-way trafficking system i.e. client is allowed credit once within the availability of the limit against financial instruments as security.
• Financial instruments include FDR/ Savings Certificate/ ICB Unit Certificate etc.
• Disbursement against loan general limit ceases once the debit summation stands equal to the limit.

Cash Credit-Hypothecation:

• This type of facility is allowed to trading/ manufacturing enterprises against stock-in-trade or account receivables.
• Stock is maintained under the custody of the borrower.
• Bank creates hypothecation only on the stock against which credit is allowed.
• For comfort bank may obtain landed property as collateral security.

Cash Credit-Pledge:

• This type of facility is allowed to trading/ manufacturing enterprises against stock-in-trade or account receivables.
• Stock is maintained under the custody of the bank.
• Bank creates charge in the form of pledge on the stock against which credit is allowed.

Term Loan-Industrial:

• This type of credit is allowed to facilitate an entrepreneur to set up an industry or undertake BMRE scheme of the existing unit.
• This facility is allowed usually for 3 to 5 years.
• Repayment is made by the loanee through number of installments as per agreed repayment schedule.

Letter of Credit-Cash:

• This type of facility is allowed to assist towards import/ procure raw materials/ trading goods.
• Bank undertakes to pay the L/C value to the exporter/ supplier on behalf of its client.
• This type of credit has made the world trade easier.

Letter of Credit-Back to Back:

• This is one of the convenient types of the credit for Readymade Garments Industries.
• Back-to-Back L/C is opened against export L/C for importing/ procuring fabrics and accessories.
• Back-to-Back L/C payment is settled from export proceeds on due date.

Clean Bill Purchased:

• The client having exceptionally good track record is allowed bank credit for a temporary period in the form of Clean Bill Purchased against DD/ PO/ Gov’t Cheque under collection.

Documentary Bill Purchased-Inland:

• The documents presented under Inland Back to Back L/C and duly accepted by the issuing bank are purchased under the head of Documentary Bill Purchased-Inland towards financing the deemed exporter.

Documentary Bill Purchased-Foreign:

• The documents presented under Export L/C may be financed in the form of Documentary Bill Purchased-Foreign if the documents are inconformity with the terms and conditions of the L/C.

Customer Service

NCCBL is always busy in serving to the customer in the best way. One of their greatest assets is the trust of its customers. NCCBL has the following arrangement of remittance with in the country-

• Informing information provided by the bank in every desk
• Account Opening
• On Line Banking Facilities
• Pay order issue
• Telephonic Transfer (TT)
• Demand Draft (DD) issue
• Account Transfer Facilities
• Solvency Certificate issuing
• Locker Service
• Letter of Credit (L/C)
• Traveler cheque issue
• Capital Formation

Locker Service:

• The clients are in anxiety with their valuables may take the service of Locker Facility from NCC Bank Ltd.
• Clients may safely deposit/ keep their valuables say, property deeds, ornaments etc. under Locker Service arrangement.

Foreign Trade:

• Foreign trade department is dedicated to serve the people engaged in importing and exporting. Foreign trade service includes L/C opening, Export Documents negotiation/ purchase, counseling etc.

Remittance-Local:

• Bank renders its services to its clients transferring fund from one place to another around the country in the form of TT/ MT/ DD/ PO etc. to subside the risk of carrying cash.

Remittance-Foreign:

• Foreign remittance includes FTT/ FDD/ TC etc. This type of service enables the client to receive fund from outside the country or vice-versa.

Letter of Credit (L/C):

Letter of Credit (L/C) is an agreement between an importer and a bank (issuing). The bank to the importer provides letter of credit in order to purchase goods from the exporter. The bank acts on behalf of the clients to deal with the exporter and clients make the payment after receiving the goods accordingly. It is one of modern credit facility that provides assurance, that exporter of goods will receive his payment from importer. Subject to the condition that the beneficiary exporter submits documents conforming to the term of L/C. It contains a brief description shipping date and the expiration date after which the payment will no longer be made. This type of letter is issued by commercial bank.

Types of Documentary Letter of Credit:

Revocable credit:

This type of credit can be revoked or cancelled at any time without the consent of, or notice of the beneficiary. As per article 8 (a) of UCPDC 500 “A revocable credit may be amended or cancelled by the issuing bank at any moment and without prior notice to the Beneficiary”.

Irrevocable credit:

The Irrevocable credit is a commonly used type of documentary credit. The credit which cannot be revoked, varied or changed/amended without the consent of all parties- buyer (applicant), seller (Beneficiary) Issuing Bank and confirming Bank (in case of confirmed LC).

Types of Special Letter of Credit (L/C):

• Revolving L/C:
• Transferable L/C.
• Confirmed L/C.
• Back-to-Back L/C.
• Red clause L/C.
• Green clause L/C.

Transferable L/C:

The Original beneficiary when request the banker in writing to effect transfer the L/C to the secondary beneficiary, the signature of the original beneficiary on the letter of request must be verified by his banker. The L/C can be transferred only the terms and conditions specified in the original credit.

Red Clause L/C:

A red clause credit is a credit with a special clause incorporated into it that authorizes the advising bank or confirming bank to make advances to the beneficiary before presentation of documents. A red clause is used, for example, by a wool importer in England to enable a wool shipper in Australia to obtain funds to pay the actual suppliers by direct purchase by obtaining a loan from the Australian bank.

Green Clause L/C:

A green Clause Credit is a credit with a special clause incorporated it to it that which not only authorizes the advising bank to grant pre-shipment advances but also storage cost for storing the goods prior to shipment. It is useful in situations where shipping space is not readily available, i.e. some African countries. It is so called because the clause was originally written in green ink to draw attention to the unique nature of this credit. At present this type of credit is not in use.

The Clauses Contained in a L/C:

• A clause authorized the beneficiary to draw bills of exchange up to a certain on the opener.
• List of shipping documents, which are to accompany the bills.
• Description of the goods to be shipped.
• An undertaking by the issuing bank that drawn in accordance with the conditions will be duly honored.

Instructions to the negotiating bank for obtaining reimbursement of payments under the credit.

Import procedure of NCCBL:    

As per Import & Export control Act-1950 no person can indent, import or export any goods in to Bangladesh except incase of exemption issued by the government of the Peoples Republic of Bangladesh. So for doing import business at first every importer should obtain Import Registration Certificate.

Procedure for obtaining IRC:

Through public notice or import policy the chief controller of import and exports invites application usually for registration of importers. The following papers/documents are required for submission to CCI & E for Import Registration Certificate.

• Application form.
• Nationality Certificate.
• Income tax registration certificate with TIN.
• Trade license.
• Membership Certificate.
• Partnership Deed (for partnership firm).
• Certificate of Registration with the register of joint Co. & Articles and Memorandum of Association in case of limited company.
• Bank Certificate.

The nominated of the applicant will examine the papers/documents and verify the signature of the applicant and forward the same to the concerned office of the CCI & E with a ford wing schedule in duplicate though bank representative. The duplicate copy of the same bearing the acknowledgement of CCI & E office of the receipt of the document is received by the bank and is preserved.

Basis of Import:

• Proforma Invoice.
• Special trade agreement.
• Sales Contract.
• Barter system.

Role of Letter of Credit in the Import Procedure of NCCBL:

A letter of credit is a letter is issued by a bank (issuing bank) at the request of its client addressed to a person (beneficiary) under taking that the bills drawn by the beneficiary will be duly honored by the issuing bank providing certain conditions mentions in the letter.

Importer’s Application for L/C limit/margin:

To have an import L/C limit, an importer submits an application to NCCBL. In that application he/she gives full detail of the following:

• Full particulars bank accounts.
• Nature of business.
• Required amount of limit.
• Payments terms & condition.
• Goods to be imported.
• Offered security.
• Repayments schedule.

A credit officer scrutinizes this application & accordingly prepares a proposal & forward it to the head office credit.  The committee, if satisfied, sanctions the limit & returns back to the branch. In this manner the importer is entitled for the limit.

Payment Procedure of Import Documents:

Payment procedure of NCCBL involves the following tasks:

Date of Payment

Usually payment is made within seven days after the documents have been received. If the payment is deferred, the negotiating bank may claim interest for making delay.

Preparing Sale Memo

As sales memo is made at B.C rate to the customer. As the T.T & O.D rate is paid to the ID, the difference between these two rates is known as Exchange Trading. Then an Inter Branch Exchange Trading Credit advice is sent to Inter ID.

 Requisition for the Foreign Currency

For arranging necessary fund for payment, a requisition is sent to the ID.

Transmission of Telex

A telex is transmitted to the correspondent bank ensuring that payment is being made.

Processing of L/C proposal:

1. Name and Address of the party.
2. Name and Address of the government.
3. TIN and IRC Number.
4. Date of opening of accounts.
5. Turnover in CD account.
6. Amount of L/C applied.
7. Commodity to be imported.
8. Branch’s total exposure on the proposal item.
9. Branch’s total exposure (Total outstanding on account of the party).
10. Name and Address of the beneficiary.
11. Status reports on the beneficiary.
12. Country of origin.
13. Mode of shipment.
14. Shipment Validity.
15. Margin proposed by the party.
16. Margin recommended by the branch manager.
17. Past performance of the party.
18. Present liabilities position of the party in its own name and on account of sister concerns:

– L/C Liabilities

– PAD Liabilities

– LIM Liabilities

Various steps involve in the operation of letter of credit:

1. The importer and exporter have made a contract before a L/C is issued.

2. Importer applies for a letter of credit from his banker known as the issuing bank. He may have to use his credit lines. If he is a new customer, margin deposit may be required: e.g. 20% deposit on credit amount.

3. Issuing bank opens the L/C, which is channeled through its overseas corresponding bank, known as advising bank.

4. Advising bank informs the exporter of the arrival of the L/C.

5. Exporter ships the goods to the importer or other designated place as stipulated in the L/C.

6. Meanwhile, he prepares his own documents and collect transport documents or other documents from relevant parties. All these documents will be sent to his banker, which is acting as the negotiating bank.

7. Negotiation of export bills happens when the banker agrees to provide him with finance. In such case, he obtains payment immediately upon presentation of documents. If not, the documents will be sent to the issuing bank for payment or on an approval basis as in the next step.

8. Documents are sent to issuing bank (or reimbursement bank which is a bank nominated by the issuing bank to honors reimbursement form negotiating bank ) for reimbursement or payment.

9. Issuing bank honors it’s undertaking to pay the negotiating bank on condition that the documents comply with L/C terms and conditions.

10. Issuing bank releases documents to importer when the letter marks payment to the former or against the letter’s trust receipt facility.

11. The importer takes delivery of goods upon presentation of the transport documents.

Import Financing:

PRE- IMPORT FINANCING:

Secured Overdraft (SOD):  Advance allowed in foreign currency for opening L/C to import goods, fall under this type of lending. This is also an advance of temporary period, which is also known as pre-import finance.

PAD (Payment Against Document):

Payment against lodgment of shipping documents of goods, imported through L/C falls under this head. It is a term advance connected with import and is generally liquidate shortly against payment, usually made by the party for retirement of documents to release goods from customer authority as payment has to be made within 7 days after the documents have been received and negotiating bank may claim interest for making delay.

POST-IMPORT FINANCING:

If there is no available in cash in importer’s hand, he can request the bank to grant loan against the documents for the purpose of post import finance. There are two following forms of post import finance available in NCCBL Dilkusha br.

• LIM (Loan against Imported Merchandise)
• LTR (Loan against trust Receipt)

Loan against Imported Merchandise (LIM):

Advance allowed for retirement of shipping documents and release of goods, imported through L/C taking effective control over the goods by pledge in to downs under bank’s lock and key fall under this type of advance. This is also a temporary advance connected with import, which is known as post- import financing would falls under the category “commercial lending”.

LIM may be created in two ways:

• LIM on Importer’s request
• Forced LIM (under forced circumstances when party fails to retire the documents)

Points to be considered:

• Clearing of the goods should be made through approved Clearing Agent of the Bank.

• Landed cost of merchandise to be properly worked out before the goods are delivered to the customer against proportionate payments.

• The landed cost of each item should be separately worked out so that goods are delivered to the customers against proportionate payment made for each item.

Export procedure of NCCBL:

Export is one of the important activities that can increase economic and social well being through transaction of goods and services form domestic economic agent to foreign economic agent for which domestic economic agents receive payments, preferably in variable foreign currency. The important and export trade in our country is regulated by the Import & Exports (control) Act, 1950. There are some formalities, which an exporter has to fulfill before & after shipment of goods. There procedures are described in the following lines.

Registration from Chief Controller of Import & Export (CCI & E): 

No person without registration granted by the chief controller of imports and exports shall anything into or out of Bangladesh except in case of exemption issued by the government. Under the export policy of Bangladesh the exporter has to get the valid Export Registration Certificate (ERC) from chief controller of Import and Export (CCI & E).  The ERC is required to renew every year. The ERC number is to be incorporated on EXP form and other papers connected with exports.

Registration of Exporters:

For obtaining Export Registration Certificate, Bangladeshi exporter are required to apply to the controller of Import & Export in the prescribe from along with the following documents:

• Nationality and assets Certificates
• Memorandum and Articles of Association and Certificate of incorporation in case of limited company.
• Bank Certificate.
• Income Tax Certificate.
• Trade License etc.

Obtaining EXP:

After getting ERC the export applies to NCCBL (or any other commercial bank) with trade license and if the bank is satisfied, an EXP issued to the exporter.

Securing of Order:

After getting the ERC the exporter may proceed to secure the export order. He can do this by contracting the buyers directly through correspondence. In this purpose exporter can get help form:

• Liaison Offices
• Buyer’s Local Agent
• Export Processing Organization
• Bangladesh Mission Abroad
• Chamber of Commerce
• Trade Fair etc

Signing the Contract:

While making a contract for sale, exporter should ask the buyer for letter of credit clearly stating terms and conditions of export and payment. The following are the main points to be looked into for receiving/collecting export proceeds by means of Documentary Credit:

• The terms of the L/C are in conformity with those of the contract.
• The L/C is an irrevocable one, preferably confirmed by the bank.
• The L/C allows sufficient time for shipment and negotiation.

Procuring the materials:

After making the deal and on having the L/C opened in his favor, the next step for the exporters is to set about the task of procuring or manufacturing the contracted merchandise.

Shipment of goods:

The following are the documents normally involved at the stage of shipment:

• EXP Form
• ERC (valid)
• L/C copy
• Customer duty certificate
• Shipping instruction
• Transport Documents
• Insurance Documents
• Invoice
• Bills of Exchange
• Certificate of Origin
• Inspection Certificate
• Quality Control certificate

Now exporter submits all these documents along with a letter of Indemnity to NCCBL for negotiation. An officer scrutinizes all the documents. If the documents are clean, NCCBL purchase the documents on the basis of banker customer relationship. This is known as Foreign Documentary Bills Purchase (FDBP).

Export Financing:

Exporters need finance in the following manner:

• Pre – shipment Finance
• Post – shipment Finance

Pre – shipment Finance:

The exporters may avail of facilities during pre-shipment stage in the following ways:

Back-to-Back Letter of Credit:

A back-to-back letter of credit is a new credit. It is different form the original credit based on which the bank undertakes the risk under the back-to-back credit. In this case, the bank’s main security is the original credit (selling credit) and the back to back credit (buying credit) are separate instruments independent of each other and in no way legally connected, although both are part of the same business operation. The supplier (beneficiary of the back to back credit) ships goods to the importer and presents documents to the bank as is specified in the credit. It is intended that the exporter would substitute his own documents and ships the goods to the importer, if necessary, and present documents for negotiating under the original credit, his liability under the back-to-back credit would be adjusted out of these proceeds. The export L/C is marked lien and no margin is taken.

Documents that are required to submit at NCCBL for the opening of a back-to-back L/C are given below:

• Master L/C
• Valid Import Registration Certificate (IRC) & Export Registration Certificate (ERC).
• L/C application and LAC form duly filled up & signed.

• Proforma Invoice or Indent.
• Insurance cover note with money receipt.
• Duly signed IMP form.

Packing credit:

Packing credit is a short term advance granted by a bank to an exporter against valid export L/C contract for the purpose of purchase of materials or finished goods or manufacturing, processing, packing, transporting up to ware house/ port of shipment etc. of exportable for export.

Post Shipment Financing:

Post- shipment credit is given to the exporters by banks after the actual shipment of the goods. The necessity for post shipment credit arises because the exporters who have shipped the goods have to wait for a long time for receiving payment from the overseas buyer; the period of waiting depends on the term of payment. The exporter needs funds to carry on his normal export activities. The bank is the natural source to seek the finance for these activities.

Bank generally finances the exports at post-shipment stage on verification of the credit- worthiness and financial soundness of both the buyers and the sellers.

Others :

Loro Account:

Loro account means “ their account with you “. Account maintained by third party is known as Loro account. This account may be either in foreign currency or home currency.

Nostro Account:

Nosto account means “ our account with you”. The account that a home bank maintains with a foreign bank is known as Nostro account.

Vostro account:

Vostro account means “ your account with us’. The account maintained by a foreign bank is known as vostro account.

Major problem in the operation of L/C:

• Bank deals with documents not with goods and sometimes goods are not as per documents.
• Over invoicing by mist up conspiracy of buyer and supplier.
• In advance of pre-shipment inspection supplier may inferior goods and for that bank faces some problem.
• If the market price of the goods falls and the party maintains less the liquid money of margin then the party would not release the goods.
• In absence of insurance cover note with access risk.
• In case of frequent change in tax, tariff duty and the exchange rate of Taka with foreign currency.

CAMEL Rating

CAMEL Rating is a system that assigns a numerical rating to bank based on examiner’s judgment regarding the bank’s capital adequacy (C), asset condition (A), management quality (M), earning record (E), and liquidity position (L). Health of a bank can be read by the help of CAMEL rating.

Each component of the CAMEL system is assigned a number from one (1)  which is strong, to five (5) which indicates ‘unsatisfactory’. The assignment of this rating is the critical aspect of the system. The five components are averaged to obtain a composite CAMEL rating. The composite CAMEL rating gives the bank supervisor the clearest indication of whether overall position of bank is (1) sound, (2) satisfactory, (3) fair, (4) marginal or ( 5) unsatisfactory.

Ranked from 1 to 2 requires less capital adequacy.

Ranking from 3 to 5 indicates problem bank. So adequate capital is necessary. Otherwise bank run or bank failure may arise.

NCCBL measures their performance by using CAMEL standard. By using this standard NCCBL can able to know the position of the bank, i.e.

1. Progress of a bank.
2. Working capital of a bank.
3. Effectiveness of management.
4. Forecasting of earning.
5. Position of the assets and liquidity.

SWOT analysis

By doing the SWOT analysis it is possible to find out the strengths, weakness, opportunity and threats of NCCBL. Strengths and weakness always come from the internal environment. On the other hand opportunity and threats every times comes form the external environment. The profit of the organization depends how quickly the institute recovers the weakness, ability to skim the different opportunities from the market and also the capability of handling the threats. On the other hand in order to accomplish competitive advantage over the competition an organization should also focused on building blocks it’s strengthens.

Strengths of the NCCBL:

• Very good profit margin achieved by the last few years.
• Strong capital back up brings available liquidity.
• Efficient and experienced management team.
• Directors of the bank are not over ruling decisions made by the management team.
• Several deposit schemes and financial products offered by the organization, so clients have enough options to invest their money.
• Bank quickly expending its business all over the country.

Weakness of the NCCBL

• Traditional Banking System is followed.
• Performance of the marketing sector is really poor.
• More dependency rests on government sources for deposit mobilization.
• Some services offered are not adequate.

Opportunities for the NCCBL

• Client’s reliability on NCCBL is growing day by day on the bank.
• NCCBL has now the global market reputation.
• NCCBL offer many popular schemes to the people and by these scheme NCCBL can raise its deposit promptly.
• Recently NCCBL provides credit card facility to the customer.

Threats to the NCCBL

• Very competitive market.
• Our political unsuitability affects the banking sector very often.
• Our economy now passing recession this also affects the bank.
• Central bank’s policies some times are not in favor of the private banks.
• Competitors have more deposit.
• Competitors have more products & services.
• Government pressures to reduce interest rate.

Problems involved in rendering service

• Still now, Dilkusha branch follows the traditional banking system, Internet banking services were not launched up till now in the branches NCCBL.

• Most of the branches of NCCBL in Dhaka City have online banking facilities but a large branch of NCCBL Dilkusha branch has no online banking facilities. No ATM both exists in the branch premises.

• Be short of adequate banking software and IT support.

• Insufficient computer and printer machine. At the pick hour times, customer cannot get proper service.

• Lack of providing necessary prospectus on overall information about various schemes of NCCBL.

• A significant number officers of Dilkusha branch are working in a specific desk for a long time feeling monotony and certainly that they are not be able to know the overall banking system.

• Foreign Exchange section is one of the busiest sections in bank. Sometimes it is found that all works are not performed efficiently due to insufficiency to officers/staffs.

• Training facility on computer literacy is not sufficient especially for the junior level officers.

• The advertisement of NCCBL in television, newspaper of in any mass media is not available.

Recommendation

On the basis of the problems we can suggest these recommendation-

• The banking should completely be operated through online. Though it is online banking facilities in some branches, but still some works are being done manually, which should be eliminated gradually and it will automatically give more efficiency in service.

• Employees training should be conducted so that they will be more professional and efficient to deal with problem customers and problematic situations.

• Individual attention should be given to customers in order to better understand their needs and better satisfy them.

• NCC BANK should pursue a positive advertising campaign in order to build up a strong image and reputation among potential customers. TV ads should be aired to reach a wider array of customers. The ads should capitalize on building strong relationship, needs of customers and quality service of the bank rather than features of products.

• NCCBL should arrange the monthly seminar or workshop on the vest area of Foreign Exchange business and its contemporary issues for the branch’s officer. Certainly this workshop will motivate them.

• Head office of this bank should supply necessary prospectus about the information of the bank for the clients. Although every table of every section is capable of supplying the various information about the bank but this task is generally preformed by the front desk or account opening section. However this section is found always busy. Therefore, if NCCBL wants to perform this task in more efficiently the branch should keep a Reception Section.

Conclusion

In banking sector NCCBL is a name of trust, now it is a model of the best service. I had the opportunity to work for this banking giant during my three months internship program. I was placed at the Foreign Exchange department of NCC BANK, Dilkusha Branch. During the time I got a vast opportunity to observe the overall service process of foreign exchange department and also on general banking division. I also got the scope to interact with customers directly and reveal their expectations and perceptions about the bank’s services. During my interaction with customers I felt that somewhere there are gaps between customer expectations and banks services.

However, it is also true that this period of time (3 months) was not enough to understand everything of the concern. Even though I tried my level best to make the report informative, this report may be contained some errors, there may be some printing mistakes-no doubt for this reason I apologize.

So, Finally I will say that this internship at NCC BANK has increased my practical knowledge of Business Administration and made my MBA education more complete and applied. I give NCC BANK all my wished and regards so that it could become the leader of financial services in Bangladesh in the near Future.