Overall Banking System of Prime Bank Limited

The main objective of this assignment is to analysis Banking System of Prime Bank Limited. Other focus purposes are Evaluate of customer service quality of the bank in comparing with some other private sector banks. Here discuss also general banking and customer service. Finally find out the problems of customer services of the bank and suggest suitable measures to remove the existing problems and improvement of customer services of Prime Bank Limited.

Introduction

The Bangladesh banking sector is made up of four nationalized commercial banks (NCBs), five government-owned specialized banks, 30 domestic private banks, 22 non-bank financial institutions, including the Dhaka Stock Exchange and the Chittagong Stock Exchange, and 12 foreign banks. The percentage of non-performing loans in the banking system is extremely high.  As of March 2004, NCB rates were 35%, government-owned specialized banks at 56% and domestic private banks at 17%.  Only foreign banks have been able to keep their non-performing loan portfolio in check at about 2%.  The banking system is further impaired by a web of weak balance sheets, minimal demand from qualified borrowers, and heavy reliance on liquid asset-based lending. The U.S. Government and donor institutions are assisting with financial sector reforms.  Part of the reform effort is to upgrade regulations and accounting standards to international standards as far as possible. Bangladesh Bank regulates all banking institutions, and, as in many countries, the Ministry of Finance rather than being independent controls the central bank.

Every bank has different divisions and every division has units or departments and every department has their own functions to serve the customers according to customer’s requirement. The departments are:

1. General Banking
2. Export & Import
3. Loans & Advances

General Banking is the heart of a bank that operates the day-to-day transactions. It contains opening account, issuing chequebook, receiving account payee cheque, issuing and responding IBCA or IBDA, Outward and inward bills collection, issuing payment order, demand draft and telegraphic transfer, providing locker service and issuing FDR. This is very important to satisfy a customer in this sector because the customers usually make judgment about the quality of services depending on how much satisfaction they are getting from the customer services.

In today’s financial world, banking sector plays an uncompromising role to uphold a country’s economy. Recent times in Bangladesh, private banking sector has been contributing a lot in the total economic growth in the country; and this sector has proven itself as a profitable venture with it’s superior products and customer services.

Prime Bank Limited (PBL) is a fast growing private sector bank in Bangladesh. In terms of quality services and value addition to shareholders, Prime Bank Limited is already maintaining its position at the top slot. The bank has already proved satisfactory progress in all areas of banking operation and it further expanded and consolidated its customer base both in of its core business and retail banking. Prime Bank Limited is determined to explore the different ways to accommodate with the needs of its clients.

Objectives:

The main objectives of the study are:

1. To evaluate the customer services quality which are provided to the customers as well as their satisfaction with the services of Prime Bank Limited and compare it with other private sector Banks.
2. To find out the problems of customer services of Prime Bank Limited.
3. To suggest suitable measures to remove the existing problems and improvement of customer services of Prime Bank Limited.

Research Design: This is a descriptive research of which major objective is to describe something. This study is a single cross sectional design where preliminary information is gathered only from the existing clients (account holder) of Prime Bank Limited, The Premier Bank Limited, Dutch-Bangla Bank Limited, National Bank Limited and Brac Bank Limited to whom the quality of services is being provided and how well the customers are accepting the services. The descriptive research will help to provide the insights and understanding of the present situation of private sector banks.

Sample Design:

Target Sample

The target population will be following:

1. Clients of PBL, the Premier Bank, DBBL, National Bank and Brac Bank (branches at Dhaka City).
2. Officers at customer services from the selected banks.

Sampling Technique:

Simple random sampling technique was used in this research. This is a probability sampling technique in which each element or unit in the sample has a known and equal probability of selection. The sample is drawn by a random procedure from a sampling frame.

Sample Size:

The sample size refers to the number of elements to be included in the study. The sample size of this research is 100

Survey instrument:

A structured questionnaire is used in this research to collect data from the valued clients. The method of data collection is communication study. The questionnaire survey method is useful method to collect data for the following reasons:

1. Structured questionnaire survey method can be used systematically.
2. 100 clients will be surveyed for this research. The allocated time for the research is very limited hence personal interview is not possible.

Survey Method:

The survey method used in this study is primary data collection tool. Each respondent is given a questionnaire to fill in. Through the questionnaire, the respondents were asked about the personal views of the client’s satisfaction on the services of Prime Bank Limited, The Premier Bank Limited, Dutch-Bangla Bank Limited, National Bank Limited and Brac Bank Limited. Certain objectives will be examined using secondary data.

Source of Information:

The information about the provided services were collected from the officers related with customer service department. Also the lack of services and satisfaction of customers, related information were collected from the clients.

Primary Source of Data Collections are:

1. Face to face interview with the bank officers.
2. Some questionnaire survey with the customers was made at Prime Bank Limited.

Secondary Source of Data Collections are:

1. Official records of the clients.
2. Annual report of Prime Bank Limited.
3. Websites of Prime Bank Ltd.
4. Different publications and brochure regarding banking functions.

Profile of Prime Bank Limited

Introduction to Prime Bank Limited:

The Prime Bank Limited (PBL) is a national banking group that is incorporated on February 12, 1995 as a consequence of persistent efforts of a group of entrepreneurs having excellence of experience exposure in the different fields of industry, trade and commerce of the country. It started operation as a commercial bank on April 17, 1995 with a branch at Motijheel. At present, the bank has 70 branches spread all over the country. It renders all types of commercial banking services to the customers of all strata in the society within the stipulations laid down the bank company act 1994 and rules and regulations formed by Bangladesh from time to time. Diversification of products and services and innovation of products suited to the needs of the customers in keeping with relevant rules and laws have made it different from other commercial banks of the country.

As a fully licensed commercial bank, a highly professional and dedicated team is managing Prime Bank Ltd. with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition.

Prime Bank Ltd. has already made significant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMEL rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operation.

Prime Bank Ltd. offers all kinds of Commercial Corporate and Personal Banking services covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank. Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software.

The bank has consistently turned over good returns on Assets and Capital. During the year 2004, the bank has posted an operating profit of Tk. 747.84 million and its capital funds stood at Tk 1664.31 million. Out of this, Tk. 700 million consists of paid up capital by shareholders and Tk. 964.31 million represents reserves and retained earnings. The bank’s current capital adequacy ratio of 12.43% is in the market and much above the stipulated line of 8%. In spite of complex business environment and default culture, quantum of classified loan in the bank is very insignificant and stood at less than 1.48%.

Prime Bank Ltd., since it’s beginning has attached more importance in technology integration. In order to retain competitive edge, investment in technology is always a top agenda and under constant focus. Keeping the network within a reasonable limit, the strategy is to serve the customers through capacity building across multi delivery channels. The past performance gives an indication of strength. The bank is better placed and poised to take their customers through fast changing times and enable them compete more effectively in the market they operate.

Goals and Objective of the Bank:

Maximization of Profit through customer satisfaction is the main objective of the Bank. In addition, the others relevant objectives are:

1. To be market leader in high quality banking products and services.
2. Active excellence in customer service through providing the most modern and advance technology in the different spheres of banking.
3. To participate in the industrial development of the country to encourage the new and educated young entrepreneurs to under take productive venture and demonstrate their creativity and there by participate in the national development.
4. To provide credit facilities to the small and medium size entrepreneur located in urban & sub-Urban area and easily accessible by our branches.
5. To develop saving attitude and making acquaintance with modern banking facilities.
6. To inspire for undertaking small projects for creation employment through income generating activities.
7. To play a significant role in the economic development of the country.

The Vision & Mission:

To be the most efficient bank in terms of customer services, profitability and technology application.

The Mission:

1. Continuous improvement in business policies and procedures.
2. Cost reduction through integration of technology at all levels.
3. Converting all functions at quick services.

Capital Structure of Prime Bank Limited:

The authorized capital of Prime Bank Limited is Tk. 1,000 million and the paid-up capital stood at the Tk. 600 million as on December 31, 2004. This excludes issue of proposes bonus share worth Tk. 100 million during the year under review.

Reserve fund of the Bank stood at Tk. 807.92 million in 2004. The break up is as detailed in the next page:

In addition to the reserve fund mentioned above fund, general provision for unclassified advances amounting to Tk. 131.73 million stood at the year end 2004 and this amount is also available for calculating capital adequacy requirement. After taking all considerable components, total capital funds stood at Tk. 1664.31 million as on December 31, 2004.

As at the end of the 2004, total deposits stood at Tk. 16,902.29 million, a 27% increase compared to the Tk. 13,259.87 million from the year before. This is undoubtedly a remarkable progress considering volatile price situation for acquiring deposits. Liability pricing came under stress on a number of occasions during last year. Because of the weak demand the bank had to realize pricing for different sets of liability.

Deposit Performance:Prime Bank Limited is well able to mobilize substantial deposits through various deposit schemes. As on December end 2004, deposits under various schemes stood at Tk. 3644.40 million in the last year showing an increase of around 37%.

Deposit mix as on December 31, 2008 was as follows

Product & Services of PBL

Deposit Scheme:

Bank is the largest mobilizer of surplus domestic savings. The investment in its turn helps industrialization leading towards creation of wealth of the country. And the wealth finally takes the country on road to progress and prosperity. As such, savings is considered the very basis of prosperity of the country. The more the growth of savings, the more will be the prosperity of the nation.

The savings rate in Bangladesh is one of the lowest in the world rate of domestic saving being 17.78 %. In order to improve the savings rate, Financial Institutions responsible for mobilization of savings should offer attractive savings schemes so that the marginal propensity to save increases. The savings do not, of course, depend only on the quantum of income but largely depend on the habit of savings of the people.

PBL has formulated the following Savings Schemes

1. Contributory Savings Scheme
2. Special Deposit Scheme
3. Fixed Deposit Scheme
4. Prime Bank Insured Fixed Deposit Scheme
5. Monthly Benefit Deposit Scheme
6. Education Savings Scheme
7. Prime Bank Money Scheme
8. Current / Savings Account Form

Contributory Savings Scheme:

This is a Savings Scheme in which a person gets the opportunity to build up savings by contributing monthly installments and receives an attractive fixed amount at the end of a specified term.

The Scheme is designed to help the fixed income group to save money and build up a sizable funds with which they can go for some income generating venture to improve the quality of their life and/or meet any future financial obligations.

The salient features of the Scheme are given below:

1. . The size of the monthly installment is Tk. 250, Tk. 500 and Tk. 1,000 to be deposited every month throughout the savings term.
2. The term of savings shall be for 5 years, 8 years and 10 years.

A lump sum amount shall be paid to the depositor after maturity of respective terms of savings as per the following table:

1. Account under the Scheme can be opened on the separate form designed for the purpose. Introduction will not be required for opening of the Account.
2. The depositor will have the option to choose any installment at the time of opening of an Account but will not be allowed to change the size of installment afterwards.
3. Account may be opened in the name of individual or joint names of two individuals. Account in the name of minors can be opened under the Scheme to be operated by the guardian.
4. A person can open more than one account for different size of installments at any Branch of the Bank.
5. The Account holder may appoint a nominee (s) to receive the balance in the account.
6. The specified amount on maturity at any slab shall be paid after one month from the date of deposit of the final installment.

Normally no withdrawal shall be allowed before 5 (five) years. But, if any depositor intends to withdraw his savings due to certain unavoidable reasons before 5 (five) years, he will be allowed to do so, in the following manner:

a) No benefit or interest shall be allowed for pre-mature encashment within one year.

b) If the account is closed after one year of its opening, benefit shall be allowed on the deposit at normal Savings Deposit rate.

Special Deposit Scheme:

This is a Deposit Scheme where deposit Installment is issued for the full amount payable after a specified period against deposit of a certain amount. The minimum term of deposit is 5 years and the scheme provides beneficial scope for investment of Provident Fund, Trust Fund, Reserve Fund/ Security Fund of various Institutions. It will provide opportunities to the Wage Earners for profitable investment of their savings.

The salient features of the Scheme are given below:

1. Deposit of Tk. 1, 00,000.00 and multiples thereof may be invested under the Scheme.
2. Bank will issue ‘Order Instrument’ payable to a particular person, organization, firm etc. for an amount payable at maturity as written on the face of the Instrument as per the following table:

The Instrument shall not be encashable before maturity. It may, however, be discounted at the counter of the issuing Bank at any time @15% on the remaining period of maturity, if necessary. Any other Bank/ Organization/ Firm/ person can also discount the Instrument. In case the Instrument is discounted by other Bank/ Organization/ Firm/ person, the Instrument may be retained with them till maturity or presented at the counter of the issuing Bank for immediate payment at the discounting rate. But, in no case the depositor shall receive less than the principal invested.

Incase of death of the payee before maturity, the amount of the Instrument will be paid at a discounted rate to the nominee of the payee or, in the absence of nomination, to the legal heirs of the payee on production of Succession Certificate.

The Instrument will be acceptable as primary/ collateral security against any advance / loan subject to registering the lien of the same with the issuing Branch of the Bank.

In case of loss of the Instrument, rules pertaining to issuance of Duplicate FDR after loss of Fixed Deposit Receipt (FDR) shall be applicable for issuance of ‘Duplicate’.

Fixed Deposit Scheme:

This type of deposit should be kept for a fixed term or period.

Prime Bank Limited deals with the following terms deposit.

Prime Bank Insured Fixed Deposit Scheme:

Prime Bank Limited offers this scheme in collaboration with ALICO.

1. Deposit shall be minimum Tk. 25, 000 or in multiple thereof
2. Insurance coverage shall be available upto Tk. 20 lacs.
3. Insurance coverage for natural death will be 100 % of deposit amount and another 100 % for accidental death.
4. The age of depositors should be between 18 to 45 years.
5. The rate of interest of this deposit is 10.50 %.
6. The minimum time for the deposit is 1 year.

Monthly Benefit Deposit Scheme:

This is a deposit scheme where the depositor gets a fixed amount of profit every month without disturbance of the principal. The Scheme is designed to attract:

1. The retirement benefits of service holders. The depositor gets a monthly pension.
2. The investment of Wage Earners who want to pay a fixed amount monthly to their families/ dependents in Bangladesh from the profit of their investment.
3. The deposit of those persons who intend to meet the monthly expense of their family from the income of their deposit.
4. Investment of fund of Trusts and Foundations, which award monthly scholarships/ stipends to students.
5. Parents who want to defray the educational expenses of their children from the monthly benefit of their deposit with the Bank.

The salient features of the Scheme are given below:

1. Deposit of Tk. 1, 00,000.00 and multiples thereof shall be acceptable for the Scheme.
2. The Deposit shall be for a period of 5 (five) years. The Principal amount is refundable on maturity.
3. Profit shall be paid on monthly basis @ Tk. 1,000.00 per Tk. 1,00,000.00.
4. The payment of monthly profit will start after minimum gap of 30 days from the date of deposit.
5. Normally, the deposit will not be encashable before 5 (Five) years. But if any depositor intends to withdraw his deposit due to certain unavoidable reasons, he would be allowed to do so, in the following manner:

Education Savings Scheme:

The educational expenses particularly the expenses for higher education are sharply increasing day by day in our country.  Sometimes, the children are deprived of getting the desired level of education because of the inability of the parents to meet their educational expenses. But the parents would not feel any difficulty to defray such expenses if a proper financial planning is made much ahead of time.

Moreover, we are receiving demands from the Islamic minded people of our country for an attractive Savings Scheme on the basis of Islamic Sariah so as to encourage them to save in Islamic way for education of their children.

With this end in view, Prime Bank Limited has introduced a Savings Scheme entitled “Education Savings Scheme” in accordance with the principles of Islamic Sariah i.e., on the basis of profit and loss sharing. The scheme provides a unique opportunity to the parents to make a future provision for the educational expenses of their children when they enter into Schools, Colleges and Universities out of the benefit of a small amount of savings with the Bank at an opportune moment.

Prime Bank Money Scheme:

Rules & Regulations:

Advance against five years Bangladesh savings certificate

• Each unit of Five Years Bangladesh Savings Certificate shall be for Tk.50,000/-
• Customer shall deposit 20 % as margin and Bank shall provide 80% of the savings Certificate value as loan for purchasing the Certificate(s) from Prime Bank Limited.
• The Certificate(s) shall be held under lien.
• Loan should be repaid in 60 equal monthly installments from the following month of disbursement.
• Installment per month will be Tk.930/-per Tk.50,000/- worth of certificate. Installment must be paid within 5th of every month. Penal interest @ 2% per month be charged for any delay.
• After 5 years i.e., on maturity of each unit of Certificate, the customer shall get Tk. 86,250/ i.e., the benefit of the customer will be Tk. 20,450/0 per unit.

 Advances against Eight Years Defense Certificate

• Each unit of Eight Years Defense Savings Certificate shall be for Tk. 50,000/-
• Customer shall deposit 20 % as margin and Bank shall provide 80% of the savings Certificate value as loan for purchasing the Certificate(s) from Prime Bank Limited.
• The Certificate(s) shall be held under lien.
• Loan should be repaid in 60 equal monthly installments from the following month of disbursement.
• Installment per month will be Tk. 930/-per Tk. 50,000/- worth of certificate. Installment must be paid within 5th of every month. Penal interest @ 2% per month be charged for any delay.
• After 8 years i.e., on maturity of each unit of Certificate, the customer shall get Tk. 1,21,000/ i.e., the benefit of the customer will be Tk. 55,200/- per unit.

Advance against Five Years Family Savings Certificate (To Female Only)

• Each unit of Five Years Family Savings Certificate shall be for Tk. 50,000/-
• Customer shall deposit 20 % as margin and Bank shall provide 80% of the savings Certificate value as loan for purchasing the Certificate(s) from Prime Bank Limited.
• The Certificate(s) shall be held under lien.
• Loan should be repaid in 60 equal monthly installments from the following month of disbursement.
• Installment per month will be Tk. 380/- in cash and monthly interest for Tk. 550/ to be transferred to adjust loan account to the customer per Tk. 50,000/- worth of certificate. Installment must be paid within 5th of every month. Penal interest @ 2% per month be charged for any delay.
• After 5 years i.e., on maturity of each unit of Certificate, the customer shall get Tk. 50,000/ i.e., the benefit of the customer will be Tk. 17,200/- per unit.

Advance against Three Years 3 Monthly based Profit Savings Certificates.

• Each unit of Three Years 3 Monthly based profit Savings Certificate shall be for Tk.1, 00,000/-
• Customer shall deposit 20 % as margin and Bank shall provide 80% of the savings Certificate value as loan for purchasing the Certificate(s) from Prime Bank Limited.
• The Certificate(s) shall be held under lien.
• Loan should be repaid in 36 equal monthly installments from the following month of disbursement.
• Installment per month will be Tk.1, 638/. Bank shall appropriate 3 monthly interest of Tk. 3,375/- every three months adjust the loan account per Tk. 1,00,000/- worth of certificate. Monthly installment is Tk. 2,763/-. Installment must be paid within 5th of every month. Penal interest @ 2% per month be charged for any delay.
• After 3 years i.e., on maturity of each unit of Certificate, the customer shall get Tk. 1,00,000/ i.e., the benefit of the customer will be Tk. 21,032/- per unit.

Loan Scheme:

PBL has formulated the following Loan Schemes

1. General Loan Scheme
2. Consumer Credit Scheme
3. Lease Finance
4. Hire Purchase
5. House Building / Apartment Loan Scheme
6. Advance against Share
7. Small and Medium Enterprise (SME)

General Loan Scheme:

Depending on the various nature of financing, all the lending activities have been brought under the following General Loan:

1. Short term Loan
2. Medium term Loan
3. Long term Loan

The loans are allowed to individual/firm/industries for a specific purpose but for a definite period and generally repayable by installments fall under this head. This type of lending are mainly allowed to accommodate financing under the categories (i) Large & Medium Scale Industry and (ii) Small & Cottage Industry. Very often term is financing for (i) Agriculture & (ii) Others.

Consumer Credit Scheme:

In order to provide financial assistance to the limited income group for raising their standard of living by acquiring domestic durables like freeze, TV, Computer, Motor Car, etc., they have introduced a Consumers Credit Scheme to improve the quality of life particularly of the fixed income earner of the society.

Eligibility of Consumers:

The Officers having confirmed/permanent job in any one of the following organizations and age between 20 to 50 years are eligible for availing of Credit facilities under the Scheme.

1. Government Organization.
2. Semi-Government and Autonomous Bodies.
3. Banks, Insurances Companies or any other Financial Institutions.
4. Armed Forces, B.D.R, Police and Ansar.
5. Private Organizations having corporate structure.
6. Teachers of Universities, Colleges and Schools.

Besides the above, Professionals like doctors, engineers, architects, lawyers, journalists, chartered accountants; self employed business executives are also eligible for enjoying credit facilities scheme subject to the providing of Bank guarantee or insurance guarantee for the amount of Credit.

Eligible Items / Articles:

Credit shall be extended under the Scheme for buying the following items /articles:

1. Car, Station Wagon, Microbus, Motor Cycle, Bi- Cycle;
2. Refrigerator, Deep Freeze;
3. Television, VCR, VCP;
4. Radio, Two-in-one, Three-in-one;
5. Air Cooler, Air Conditioner, Water Cooler, Water Pump;
6. Personal Computer, Type Writer, Camera, Movie Camera;
7. Washing Machine;
8. Furniture like Dressing Table, Almirah, Khat, Sofa Set, Wardrobe, Show Case etc.

Lease Finance:

Lease financing is one of the most convenient long term sources of acquiring capital machinery and equipment. It is a very popular scheme whereby a client is given the opportunity to have an exclusive right to use an asset, usually for an agreed period of time, against payment of rent. Of late, the lease finance has become very popular in almost all the countries of the world. An obvious advantage of the lease is to use an asset without having to buy it. The lessee is obligated to make lease payments until the expiration of the lease agreement, which corresponds to the useful life of the asset.

In a capital scarce economy like ours, lease financing is suitable for firms to acquire capital machinery, equipments, medical instruments, automobiles etc. And thereby employ their own resources more advantageously in some other investments. Lease financing also helps a firm to reap significant economic benefit through tax saving and by reducing the risk of the equipments becoming obsolete due to the technological advancement.

Lease Items / Equipments:     

Prime Bank Limited offers lease finance for acquiring the use of capital machinery, equipments, medical instruments, etc. The customers are entitled to decide the specification, price and model of the lease item/equipment. Bank will purchase the item (s) in accordance with the specifications given by the clients. However, the suppliers of the items must ensure after sales services and warranties. The price should be competitive and acceptable to the Bank.

Eligibility for Availing Lease finance:  

All genuine entrepreneurs having adequate experience and expertise are eligible to apply for lease finance under the scheme. The amount of lease finance will not generally exceed Tk. 1.00 crore, but in exceptionally good cases, the limit can reasonably be exceeded on condition that the Bank will depute an officer for close and intensive supervision of the project. In other cases of lease finance for amount below Tk. 1.00 crore, an officer of the bank will supervise a number of projects at a time according to convenience.

House Building / Apartment Loan Scheme:

Loans allowed to individual/enterprises for construction of house (residential or commercial) fall under this type of advance. The amount is repayable by monthly installment within a specified period. Such advances are known as Loan (HBL-GEN).

Loans allowed to our Bank Employees for purchase /construction of house shall be headed Staff Loan (HBL-STAFF).

Advance against Share:

In order to contribute to the development of the Capital Market of the country Prime Bank Limited extends credit facilities against pledge of Shares to the individuals as well as to the Member of DSE & CSE.

Terms & Conditions:

1. For availing of credit facilities against pledge of shares the intending borrowers shall deposit shares of at least three (3) Companies, which are preferably registered in his/her name.
2. Credit facilities in the form of Secured Overdraft (SOD) Limit may be allowed upto 50% of the Value of shares pledged calculated on the basis of current market prices or previous 6 months’ average market prices, whichever is lower.
3. In case of ICB Unit Certificates SOD limit upto 80% of the face value Certificate may be extended.
4. The Share Certificates must be accompanied by form -117 containing the signature of the Shareholders duly checked and verified.
5. The maximum ceiling shall be Tk. 20.00 Lac for individual borrowers.
6. The Stock Brokers of DSE & CSE are eligible for availing of the SOD facility against pledge of shares upto Tk.50.00 lac & Tk.15.00 Lac respectively. They will be required to keep lien of the original copy of the License issued by SEC.
7. Interest rate will be charged @ 15% P.A with quarterly rests or as may be amended from time to time.

Small and Medium Enterprise (SME):

Bangladesh is a densely populated country. Job opportunity here is very scanty; Unemployment rate is approximately 40%. Population below poverty line is 36%. Therefore, it is the prime concern for the nation to generate income through creation of job opportunity & employment. Creation of job opportunity at large scale by us is not possible. What can be done better is to help self-employment through financial support. There are many small and medium entrepreneurs in the country that have innovative idea, spirit and potentiality to do something productive for local consumers as well as export abroad.

They can generate income and contribute to the GDP. They may also provide employment to other people. Development and growth of Small and Medium Enterprise is vital for national development. Such type of beneficial enterprises borrower can not go a long way for want of financial support because they have no access to institutional credit facilities, as they cannot provide collateral security as demanded for such credit facility.

Prime Bank Limited is committed to play positive role in the overall socioeconomic development of the country. There is also a statement in the objective clause of Memorandum of Association of Prime Bank Limited as under:

1. To advance or lend money to the unemployed persons for self-employment and rehabilitation in the Society.
2. To finance the Small and Cottage Industries for Industrialization and also to create employment opportunities.

It may be mentioned here that as per decision of the Board of Directors in its 78th meeting held on 17.11.1999 a “Small & Medium Enterprise (SME) Cell” has already been established at Head Office under the Credit Division.

Islamic Banking:

Prime Bank started its operation with the slogan “a bank with a difference”. From the very inception of the Bank it showed its difference in its different activities. Opening of Islamic Banking Branch is one of its achievements within the framework of conventional banking.

Prime Bank Ltd. started its Islamic Banking operation by opening its first Islamic Banking Branch at 19, Dilkusha C/A, Dhaka on December 18, 1995. Bank opened its 2nd Islamic Banking Branch at Amberkhana, Sylhet on December 17, 1997. The salient features of Islamic Banking are as under:

1. To conduct all its activities as per Islamic Shariah.
2. To conduct its monetary matters free of interest.
3. To establish banker-customer relationship on the basis of partnership.
4. To follow Islamic principle in its entire investment portfolio.
5. To develop living standard of the poor incoming group.
6. To render excellent services to the clients cordially.

Islamic Branch of Prime Bank Ltd. conducts the following works:

1. Deposit.
2. Investment.
3. Foreign Exchange and International Trade, i.e. opening of L/Cs, Negotiation of Export Bills, etc.
4. Remittance and Transfer of fund: DD, TT, Pay Order, Travelers Cheque, etc.
5. Other services such as: Receipt Payment of different bills of clients, collection of cheques, execution of standing instructions, Issuance of Bank Guarantee, Quard, etc.

Accounting Procedure:

Deposit A/Cs of Islamic Bank may be divided into following 2(two) categories:

Al-Wadiah A/C:

Islamic Banking Branch maintains Al-Wadiah Current A/C as per Shariah Principle. Bank is committed to pay the Deposit amount to the depositor on demand. On the contrary Bank takes permission from the client to the effect that the bank will utilize the fund as deposited by the client. The client has right to make transaction according to his desire. Bank does not pay any profit to the client and the client also does not bear any loss in this type of account.

Master Card:

MasterCard Credit Card holders of Prime Bank Limited can withdraw cash from the ATMs of Standard Chartered Bank bearing the logo of MasterCard located at Dhaka, Chittagong & Khulna at any time, 24 hours, 365 days.

Prime Bank Limited obtained Principal Membership of Master-Card International in the month of May 1999. Within a period of 6 months, the bank successfully launched Master Card-Credit Card, which created a new dimension in its customer service and consumer financing.

The Special feature of the Prime Bank Master Card is that it bears the cardholder’s photo on the card, which is the first of its kind in Bangladesh and adds security against misuse. Prime Bank Limited issues 8 types of cards. These are Gold Local & International and Silver Local & International. Local cards can be used in Bangladesh only.

Followings are the main feature of MasterCard Credit

1. Prime Bank ensures high level of security by inserting the account holder’s Photograph on the Card.
2. 20 to 50 days credit form the date of transaction. When the client receives his/her monthly statement, he/she can either choose to pay in full or just minimum due amount shown on the statement. No interest is charged if he/she pays in full within payment due date.
3. 24 hours a day, 365 days worldwide service.
4. No joining/administrative fees.
5. Waiver of annual fees for International Card: If the client accumulates 20,000 Prime Bank Bonus Point for Gold Card or, 10,000 Bonus Point for Silver Card in a year then he/she enjoys his/her Card without fees ($ 1 purchase: 1 Bonus).
6. Waiver of annual fee for Local Card: If the client accumulates 10,000 Prime Bank Bonus Point for Gold Card or 8,000 Bonus Point for Silver Card in a year then he/she enjoys his/her Card without fees (Tk. 50/- purchase: 1 Bonus point).
7. The Highest Prime Bank Bonus Point holder can enjoy free air ticket Dhaka-Bangkok-Dhaka. (Business Class).
8. Cash advance facilities.
9. 1, 39, 00,000 locations accept MasterCard worldwide.

Common Terms & Their Operations at Customer Service

Deposits:

All deposits that are accepted by PBL like other banks may be classified into:

1. Demand deposits
2. Time deposits

Demand Deposits:

These deposits are without notice; PBL accepts demand deposits through the opening of

1. Current account
2. Saving account
3. Call deposits from the fellow bankers

Time Deposits:

A deposits which is payable at a fixed date or after a period of notice is called time deposit. PBL accept time deposits through fixed deposits receipt, Short-term deposit, Bearer certificate deposit etc. a contact is done between the bank and the customer. When the officer opens an account in the name of a customer, there arises a contract between them. This contract will be a valid one only when both the parties are competent to enter into contracts. As account opening initiates the fundamental relationship and the banker has deal with different legal status, PBL officials remain very much careful about the competency of the customers.

Procedure of Opening an Account:

Before opening a current or saving account, the following formalities must be completed by the customer:

1. Application on the prescribed form
2. Furnishing photographs
3. Introduction by an account holder
4. Putting specimen signatures in the specimen card
5. Mandate, if necessary

After fulfilling the above formalities, PBL provides the customer a chequebook.

Different Types of Deposit Accounts:

PBL offers the following types of accounts and their formalities:

Current Account:

In the name of individual: The client has to fill up alight green account form. Terms and conditions are printed on the back of the form. It contains the declaration clause, special instruction etc. Two copies of passport size photographs duly attested by the introducer are affixed with the form.

In joint name: In this type, the formality is same as individual account, but in the special instruction clause, either ‘survivor’ or ‘former or survivor’ clause is marked.

Proprietorship: In addition the customer has to submit the valid trade license and tax paying identification number (TIN) along with the application.

Partnership: In case of partnership account, the bank asks for

1. A copy of the partnership agreement (partnership deed)
2. A letter signed by all the partners containing the following particulars:
3. The name and address of all the partners
4. The nature of the firm’s business
5. The name of the partners authorized to operate the account in the name of the firm, including the authority to draw, endorse and accepting the bill and mortgage and sell the properties belonging to the firm.

Limited Company: On having the desire to open an account from a limited company, an officer of PBL asks for the following documents:

1. Registration certificate from the registrar of join stock of companies
2. Certificate of incorporation
3. Certificate of commencement of business
4. Memorandum of association
5. Articles of association
6. Copies of annual accounts
7. Copy of the board’s resolutions, which contains:

The name of the persons who have been authorized to operate bank account on behalf of the company.

The name of the persons who are authorized to execute documents with the bank on company’s behalf.

Societies, clubs, association: Incase of these sorts of accounts, PBL requires the following documents:

1. Registration certificate under the societies registration act, 1962
2. Copies of memorandum, articles of association
3. Resolution of the managing committee
4. Power of attorney to borrow

NGO: The account opening procedure is same but in exception is that registration certificate from the social welfare department of government must be enclosed with the application.

Joint account in the name of minor: A minor cannot open an account in his own name due to the incapacity to enter into a contract. He can pent an account in PBL in join mane of another person who will be guardian of him.

Illiterate person: An illiterate person can open an account. The thumb impression is taken in the specimen signature card with utmost care. Chequebook is issued to them but is kept under bank’s custody, PBL highly discourage this sorts of account.

Savings Account:

To encourage saving habit amongst the public, banks allow depositors to open savings accounts. Interest is awarded on the balance of the account. The number of withdrawals is generally restricted. Requirements to open an account are as follows:

1. Account opening form to be filled up by the applicant.
2. Two passport size photographs attested by the introducer are needed.
3. Passport or nationality certificate is required to open an account.
4. Introductory reference to be obtained from account holder acceptable to the bank.
5. Specimen signature of the application is taken on the signature card.
6. In a saving account minimum Tk. 1,000 is required as balance.

For opening every type of account a signature card and different register for different types of account is mentioned in the bank. An account number is given for each account and the description of the account is entered in the computer holder and to the introducer but in practice it is not done.

Fixed Deposit:

It is also known as time liabilities or term deposits. These are deposits, which are made with the bank for a fixed period specified in advance. The bank need not maintain cash reserves against these deposits, and therefore, the bank offers high rate of interest on such deposits.

In Prime Bank Limited, fixed deposit account is opened in two forms. One is midterm that is less than one year and the other is term deposit, which is more than one year.

Procedure of Opening Fixed Deposit Account:

The depositors has to fill an application form where in he or she mentions the amount of deposit, the period of which deposit is to be made and the name or names in which the fixed deposit receipt is to be issued. In case of deposits in joint name, PBL also takes the instruction regarding payment of money on maturity of the deposit. The banker also takes the specimen signatures of the depositors. A FDR is then issued to the depositor acknowledging receipt of the sum of money mentioned therein, it also contains the rate of the date on which the deposit will due for payment.

Short Term Deposit Account:

In short term deposit, the deposit should be kept for at least sever days to get interest. The interest offered for STD is less than that of saving deposits in PBL. Various big companies, organizations, government departments keep money in STD accounts. Frequent withdrawal is discouraged and requires prior notice.

Bearer Certificate Deposit (BCD): 

The bearer certificate deposit is a document of title similar to time deposit receipt issued by the bank. The document is a bearer document, hence readily negotiable, whoever presents it to the bank, has the right to get the money. There is no prescribed interest rate on such funds but PBL offers 1% less than the rate of the term deposit of different maturity. The face value of the instrument is the future value. The face value is the sum of the principal amount and the interest. It is beneficial to both PBL and the investor because of the following reasons:

• The banker is not required to encash the deposit before the date of maturity. Hence it is assured of funds of a minimum period.
• The investor is assured of ready liquidity. In case of need he or she can sell the certificate in the secondary market.

As the identification of the owners not given in the instrument, it is very much popular. During the encashment of the instrument, the excise duty and income tax (10%) is deducted. In case of premature encashment, the principal amount is only paid to the customer.

Closing of an Account:

The closing of an account takes place:

1. If the customer desires to close the account
2. If PBL finds the account not in operation for a long duration
3. If garnishee order is issued by the court on PBL
4. 4 To close the account, the chequebook is to be returned to the bank. PBL takes all the charges by debiting the account and the remaining balance is then paid to the customer. Necessary entries are given to the account closing register and computer.

General Banking Instruments:

There are different types of instruments by which different services are provided to the customers. These instruments are used to do the task smoothly and in a very efficient way.

Chequebook:

According to section 60f negotiable instruments act, 1881, a cheque is “A bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand”. To facilitate withdrawals and payments to third parties by the customer, PBL provides a chequebook to the customer chequebook contains 10 leaves for savings account while for current account is 10 to 50 leaves. A chequebook issuing register is maintained in this regard. This register contains the chequebook number, leaf number, issuing date. After giving these entries to this register, information is sent to the computer department for taking the necessary steps to pass the Cheques during withdrawl.  

The chequebook also contains requisition slip, which is used by the customer to obtain new chequebook. When all the leaves are used, the customer submits the slip to the bank. A senior official then issues a new chequebook and subsequent entries are given in the register and in computer.

If the chequebook is lost, the customer has to furnish a guarantee indemnifying the bank. After fulfilling this, a new chequebook is issued.

Seldom customers are allowed to use loose cheques if the customer wants to draw money without presenting previously issued cheque. A separate register is maintained in this regard. But this is highly discouraged in PBL.

Pay order:

A pay order is a written order, issued by a bank, to pay a certain sum of money to a specified person or a bank. It may be said to be a banker cheque as a bank drawn upon and payable issues it by itself.

A pay order is issued and paid by the same branch of a bank and such, the drawer and the drawee are the same. The person or the organization in whose favor it is issued is known as payee or the beneficiary. It is sometimes sold to the individual on payment of value to may or may not be a customer and is called the purchaser.

The purchaser should sign the standard application form giving detailed particulars and request for issue of pay order. The payee or beneficiary must not appear to be fictitious. His full name and address should be written on the application. Bank should recover commission of pay order from the purchaser.

A pay order is divided into three parts viz. The actual pay order, the second counterfoil to be returned by the payee and the first counterfoil to be retained by the issuing branch as record.

Pay Slip:

A pay slip is written authorization for making payment-specified person or firm payable by issuing branch, for a discharge liability of the bank. As pay slip is originated made payable by the bank in a receipt form there is no need for any application for its issue. A pay slip is issued to effect payments on account of bills payable for goods and services purchased or availed by it. For example, bank is required to make payment of bills for the purchase of furniture & fixture, for printing & stationary and for any other works done on its behalf by the other party on agreement with the bank.

Inward Remittances:

Banks have a wide network of branches all over the country and offer various types of remittance facilities to the public. The only other agency, which provides such facilities, in a limited way, is the post office. The remittance of funds by banks is made through different methods. They are

1. Demand drafts
2. Mail transfers
3. Telegraphic transfer

Demand drafts:

Demand draft is an order to pay money, drawn by one branch of a bank for a sum of money payable to order on demand. A draft cannot be done payable to bearer. Customers may purchases draft or non-customers of the bank. The purchaser of the draft must fill in the relative application form with his name, amount, and name of the payee, the amount and the office in which it is drawn. In order to sure safety, the purchaser is advised to cross the draft and the bank gives a test number. Having issued the draft the issuing officer would send the drawee branch, an advice containing the particulars of the draft.

Mail Transfer:

Mail transfer is an advice regarding remittance of funds sends by one branch of the bank to another branch of the same bank, at the written request of the application. The mail transfer contains the name and address of the remitter. It is a nonnegotiable instrument and generally is not handed over to the customer rather sent through post office to the concerned branch for credit to the respective account. In some cases, full address of the beneficiary required to be maintained by the applicant. Such M.T. is an advance and treated as a credit voucher of the paying branch, no separate advice is issued by the issuing branch. On receipt of the M.T. payment is made by debit to issuing branch through SB account.

Telegraphic Transfer: 

Telegraphic transfer may be affected at the written request of any person and against value received from him. A written application on the bank’s prescribed form duly signed by the purchaser should be obtained. If the application for issue of telegraphic transfer contains instruction to debit the account of the purchaser, his or her signature should be verified. It is however, preferable to obtain a confirmation cheque from the customer.

The application form is in variably checked on the following points:

1. There should be a branch of Prime Bank Limited in the place on which telegraphic transfer will be issued and the said branch has test arrangement with the issuing branch.
2. Full name of the payee and his or her account no. In case instructions are to credit his or her test arrangement with the issuing branch.
3. The amount of T.T. commission and telegram charges should be received from the purchaser. The total amount may be paid in cash or tendered by a cheque if he or she is a customer of the branch. Sometimes, the customer may also desire to pay the amount of T.T. by cheque and commission and telegraph charges by cash.
4. In case of amount tendered by cheque, the drawer on the cheque and the purchaser of the T.T. should be the same person, viz.; the signature of the cheque and on the application should tally. Such cheque should be in favor of Prime Bank Limited.
5. Now, a cost memo for the T.T. is also to be prepared by the officer under his signature, which contains the amount of T.T. commission & telegram charges and is delivered to the purchase.

Clearing:

In this unit, all the cheques of PBL and other banks of Bangladesh are dealt. There are two kinds of clearing process.

1. Inward clearing
2. Outward clearing

Inward clearing process cheques of PBL, Banani branch are deposited in other banks and sent back to Banani branch of PBL through clearinghouse for collection of money. In this process, cheques of Banani branch PBL are sent to local office of PBL at first. Then the local office sent those cheques to the Banani branch.

Process of inward clearing:

After receiving cheques from the local office of PBL, those cheques are directly send to the computer section for checking the balance of those specific accounts from which money should be collected. If the required balance available there then amount is debited from that account and the cheque is honored. But incase if the require balance is not available the authorize officer of clearing department immediately informs to the head of the customer service or he tries to connect the account holder. If the account holder does not deposit the required balance immediately the cheque is dishonored. Finally the authorized officer gives all the entry of those cheques in inward clearing register.

Process of outward clearing:

For outward clearing cheques, the bearer of the cheques must have an account in Banani branch of PBL. After the submission of the cheques, authorized officer gives the entries in software, which is provided by Bangladesh bank. The name of the software is Nikash. After giving all the entries are printed and are enclosed with the cheques. Then all the cheques with the enclosed sheets are sent to the local office of PBL for the collection of money. The local office sends it to clearing house.

Send For Collection:

Customer deposits cheque, drafts, etc. for collection along with deposit slip. Instruments within the range of clearing are collected through local clearinghouse, but for outside the clearinghouse range are collected through OBC. Customer of PBL, Panthopath  branch, Dhaka may deposit a cheque of PBL, Moulvibazar branch. For this purpose the collection bank, Prime Bank, Panthopath branch will do as follows:

1. The cheque is first deposited with the help of a slip.
2. The collecting bank gives a crossing with prime Bank, Panthopath branch. It indicates that the mentioned bank is the collecting bank.
3. Entry for outward clearing register is given with clearing seal and giving the cheque a ‘S’ (subsidiary) seal.
4. The cheque is then registered in SC register and a SC number is given.
5. Endorsement is giving like payee’s account will be credited on realization.

Online Banking Operation:

The bank has set up a wide area network across the country to provide online branch banking facility to its valued clients. Under the scheme, clients of any branch shall be able to do banking transaction at other branches of the bank. Under this system a client will to do the following type of transaction:

1. Cash withdrawal from his or her account at any branch of the bank irrespective location.
2. Cash deposits in others account at any of the bank irrespective of location.
3. Cash deposits in his or her account at any branch of the bank irrespective of location.
4. Transfer of money from his or her account with any branch of the bank.
5. Any amount can be deposited or transferred under Prime line. In the system, however, at present there is a limit for cash withdrawal through bearer or by account holder himself.

Analysis of Customer service quality of PBL & others private bank

Survey:

I have selected four banks from different generation like Premier Bank, Dutch-Bangla Bank, Brac Bank and National Bank to compare the quality and satisfaction level of customer services with Prime Bank Limited. And this is very important to identify the situation of PBL comparing with some other private sector banks. I have prepared a questionnaire for the clients of the above selected banks to compare some common and basic services within customer service. The target sample will be 100 and 20 will be from each bank. Also some other basic services will be compared on the basis of conversation with the employees of different banks. Now the survey result is highlighted by graphical representation in percentage basis as follows:

Table-01

Occupation of the Respondent Customers

Table-02

Reason for Choosing Bank

Table-03

Satisfaction with the Branch Location

Table-04

Formalities that the Bank asks for opening an account

Table-05

Formalities that the bank asks for providing loans & advances

Finding and Analysis of the Study

In every research, it is essential to find out the analysis of the study and follow the findings as a guideline of development of the project. This research was mainly done on the evaluation of customer service quality and the customer’s satisfaction about the overall services of existing private sector Banks.

The number of customers that were surveyed totaled to about 100 account holders of different Banks. From the study, it is seen that most of the customers are more or less satisfied with their services. Focus was on the common problems that they face in their Bank, reveal their expectations about the customer service and gave probable suggestion to solve these problems. Spontaneous reasons were found from the clients regarding these issues.

Characteristics of the customers:

The main characteristics of the customers are as follows:

• Age of the customers:

The average age of the sample customers was found 38 years. 20% were above 50 years, 25% were 41-50 years, 30% were 31-40 years and 25% were 21-30 years. So, most of the customers were within the age group of 21-50 years.

• Occupation of the customers:

About 60% customers of PBL are jobholders. The next highest numbers, 15% of PBL’s customers are Trader and 10% are industrials; And the rest 15% are house wife and students.

• Annual income of the customers:

The average annual income of the sample customers was Tk. 598,000. Annual income of 35% sample customers was Tk. 500,000 to Tk. 1,000,000 and above. 40% of the customer’s annual income was between Tk. 100,000 to Tk. 500,000. On the other hand, 25% of the PBL’s customer’s annual income was between Tk. 50,000 to Tk. 100,000.

• Customers by type of accounts:

35% of PBL’s customers hold current account and 65% savings account.

From the above analysis it is found that, though they have some common characteristics, customers of PBL’s are mostly middle aged, relatively better educated, concentrate in the professions like-trade and managerial services with better annual income.

• Nature of services received by the customers:

The respondent customers indicated about a dozen of services that are rendered to them by both the banks from time to time. These includes,

i) Advising about the types of deposits

ii) Advising about the types of loans to be taken

iii) Advising about the withdrawal of deposits

iv) Asking for formalities/documentation for opening accounts

v) Asking for formalities/documentation for loans and advances

vi) In the collection of cheques and other instruments

vii) In the negotiation of loans

viii) In the arrangements of remittance facilities

ix) In rendering agency services

x) In offering locker services

Reasons for choosing:

The order of preference differs between PBL’s customers. In aggregate the factors, which are considered in choosing a Bank, are given below in order of rank:

1. Quality of services and location of a Bank (55%)
2. Personal relationship and possibility of borrowings (15%)
3. Financial conditions of the banks (15%)
4. Privatized bank & size of the bank (15%)

Time required for depositing money in different accounts:

The process of depositing involves-receiving cash, counting the cash, checking the deposit slip, stamping and signing the deposit slip, passing it to the casher. At the counter the cashier returns it to the depositor. 45% of PBL’s Customer said that within 3 minutes a deposit was accepted.

Causes of dissatisfaction:

The respondent customers were asked with an open-ended question to state the reasons of their dissatisfaction with the banks services. Most of the customers stated more than one reason. Some of these are: impolite behavior of the bank employees, delay in paying cash, education of levy etc.

Finding and Analysis of customer service quality of different private banks:

Dutch-Bangla Bank Limited:

1. Chequebook: In DBBL, chequebook is issued within a few minutes after giving the requisition slip to the customer services. So, customers do not need to waste their time. They can easily collect chequebook.
2. Charges on Pay Order:, D.D, T.T: The account holders do not need to pay any charge for pay order, D.D or T.T or any online transaction.
3. Online Facilities: All the branches of DBBL are operated by centrally online system. So, any customer can be able to do any transaction at any branch. No matter, where he has the account. And the clients do not have to pay any charges for online transaction.
4. Data Centre: DBBL has the largest data centre in Bangladesh. So, customers are getting very quick services and various operations are made through online in a very short time.
5. ATM & Debit Card: The Bank delivers the ATM & Debit card to all the account holders within seven days of opening an account. Also, by using ATM card any client can make over draw but there are some conditions. Clients are also able to pay utility bills through ATM & Debit Card. There is no yearly charge for the ATM & Debit card.
6. Point of Sell (POS): DBBL has delivered 500 POS machines to different shops and markets at different important locations at Dhaka city. So, people will be able to do their shopping from anywhere (POS holder) at Dhaka city without bearing any risk. Also, bills can be paid by POS machine to the Bank.
7. Services by Net: Clients of DBBL are able to query their balance through internet and also able to pay the Grameen Phone bill by using net. So, DBBL is actually trying to make the whole system computerized and is almost successful at this philosophy.

Premier Bank Limited:

Chequebook: The account name and number are printed in the chequebook. So it looks very organized. But it takes time, so that if a client wants to take a chequebook, he has to go to the bank two times. First time to give the requisition slip to the customer service and second time to receive the chequebook. Generally, it takes one day to prepare the chequebook.

Charges on Pay Order, D.D, T.T: There are different slabs of amount on which Charge varies. Charge is reduced with the increasing of amount. Usually, there is a discount if the amount is more than 1 lac.

Evening Banking: Most of the branches of Premier Bank operate evening banking. So, customers are getting more flexibility to deposit or withdraw money or transfer fund from one branch to another branch. Also it makes the business more comfortable to its owners.

Suggestion or Complain option: At Premier Bank Limited, customers have the option to give the suggestions or complains directly to the high officials. So, The Premier Bank introduces a call center where a customer can complain or provide any kind of suggestion for better customer service. A customer can dial 8856695 or 9887581-4 from 9 a.m. to 5 p.m. for complaint.

Individual Job: All the tasks are divided individually to different employees. That’s why employees are very efficient at their task and customers get the services very promptly.

Online Facilities: The Bank is providing online services but it is not a centrally online system. So, the customer who has the online account will be able to deposit or withdraw or transfer their fund to any other branch. It is also very important that there is no charge for online transaction.

Money Transfer: At Premier Bank, any customer can transfer money locally very quickly. But to transfer money in abroad is a lengthy process. This process is done in SWIFT (Society for Worldwide International Financial Transaction). It takes more time.

Special Training: The Employees at customer services are very well trained. They get some special training to handle customers in a very efficient way. So the customers never get worry about their banking transaction.

Visa Credit Card: The Premier Bank has visa credit card for domestic and international use. By the visa credit card the customers can buy the product on credit. If the customer pays his bill on next billing period or before 11 of the month, no interest has been charged. This is very flexible for the customer.

National Bank Limited:

Western Union Money Transfer: Money transfer from anywhere in the World to Bangladesh in minutes. Joining with the world’s largest money transfer service “Western Union”, NBL has introduced Bangladesh to the faster track of money remittance. Now money transfer between Bangladesh and any other part of the globe is safer and faster than ever before. This simple transfer system, being on line eliminates the complex process and makes it easy and convenient for both the sender and the receiver. Through NBL – Western Union Money Transfer Service, money will reach its destination within a few minutes.

ATM Service: National Bank Limited has introduced ATM service to its Customers. The card will enable to save the valued customers from any kind of predicament in emergency situation and time consuming formalities. NBL ATM Card will give the distinguished Clients the opportunity to withdraw cash at any time, even in holidays, 24 hours a day, 7 days a week.

Credit Card: Through its Credit Card. National Bank Limited has not only initiated a new scheme but also brought a new life style concept in Bangladesh. Now the dangers and the worries of carrying cash money are memories of the past. Credit Card comes in both local and international forms, giving the client power to buy all over the World.

Saving Insurance Scheme: This is an uncertain World and the threatening silhouettes of future catastrophes are always looming around. This NBL scheme gives family protection against the insecurities of the world. This scheme is the first of its kind in Bangladesh. It combines the benefits of regular savings and insurance scheme, so, anyone gets the usual rate of interest on the deposited amount while he/she enjoys the protection of a comprehensive insurance coverage.

Brac Bank Limited:

Chequebook: When a customer opens a new account then cheque book is delivered at that time in name of welcome account with containing 5 pages. At that time, the customer gives requisition slip to the customer service for his/her original cheque book. So that, when he/she will come to bank, collects his/her cheque book. Then, the customer does not need to come again only for collects cheque book after open a new account.

Pay Order, D.D, T.T & Other Instruments: Usually the pay order, Demand draft, Telegraphic transfer, Pay slip, FDR receipt etc are given to the clients by printing the particulars. So, the instruments look very organized and it saves time of their valued clients.

Online Facilities: All the branches of Brac Bank are operated by centrally online system. So, any customer can be able to do any transaction at any branch. No matter, where he has the account. And the clients do not have to pay any charges for online transaction.

Services by Net: Brac Bank provides lot of services to their clients through their website. People can easily access their site and can be able to know all the related information as their requirement. Also, they can apply for loan or some other scheme through the internet.

Products & Services: The Bank is a third generation bank. So, it offers some exclusive and verities services to the clients like premium term deposit, deposit premium scheme, ABIRAM-Fixed deposit, Salary loan, pathshala loan, apurbo loan, life style loan, Teachers loan, High flyer loan etc.

Benefits of CD or SB Account:

1. No restriction on the number of withdrawals.
2. No restriction on the amount or size if a withdrawal.
3. No forfeiture rules or hidden cuts.
4. No requirement for notices to be given before making a withdrawal.

Prime Bank Limited:

1. Online Facilities: PBL is not a centrally online bank. If a customer wants the online facilities, he or she will have to apply for that in online form. And Tk.50 will be deducted per month from his or her account as online account charge.
2. Master Card: MasterCard Credit Card holders of Prime Bank Limited can withdraw cash from the 11(Eleven) ATMs of Standard Chartered Grindlays Bank bearing the logo of MasterCard located at Dhaka, Chittagong & Khulna at any time, 24 hours, 365 days. The Special feature of the Prime Bank Master Card is that it bears the cardholder’s photo on the card, which is the first of its kind in Bangladesh and adds security against misuse. Prime Bank Limited issues 4 types of cards. These are Gold Local & International and Silver Local & International. Local cards can be used in Bangladesh only.
3. Job Rotation: In Prime Bank Limited, the management has the job rotation practice. So, employees are getting chance to be expert in all the fields and customers are also getting services very fast and smoothly.
4. Pay Order, D.D, T.T: The person who has an account in PBL, only he or she can apply for pay order, D.D. or T.T. in this Bank. So, without an account nobody can do any PO, DD or TT.
5. One Stop Service: In PBL the customer service provides one stop service. So, the clients can easily do their transactions in a very short time. Here the clients do not need to stand in the line or need not wait for the serial.

Recommendation

Problems:

The respondent Bank employees face the following Problems in rendering customer services:

1. Some customers do not understand form.
2. Refusing to provide introducer or photo for opening accounts.
3. Cheques, deposit slips are not to be written properly.
4. Some customers are not interested or not able to write D.D., T.T., pay order voucher.
5. Misbehavior of some customer.
6. Lack of education and of adequate knowledge of general banking peoples in our country are not interested in involving Bank activities.
7. Failure of the electricity created problems to be done properly.
8. The telephone network of our country will have not been expended developed.
9. Not adequate knowledge for the development of a decent Banking culture in the country.

Recommendation for solution:

1. The Bank personnel should help the customers to understand the form.
2. Bank employees should be more diplomatic for acquiring information of the customers.
3. A bank employee requires more patients for the misbehavior of customer.
4. To provide proper education to the customer concerning general banking services.
5. Government and Private sector should give adequate knowledge for the development of a decent banking culture in the country.
6. Management information System should immediately be developed.
7. Making correspondence with the customers.
8. Making good behavior with the customers.
9. Call centre can be established for receiving complains and suggestions.
10. Telephone network should be developed.
11. All the tasks should be equally distributed to all the employees.
12. The charge of PO, DD,TT etc can be exempted in the case of PBL customers.
13. Fund transfer, payment of utility bill, balance inquiry etc can be done through internet.
14. PBL can join to the western union money transfer. As a result, Money transfer from anywhere in the World to Bangladesh in minutes and money transfer between Bangladesh and any other part of the globe is safer and faster than ever before.
15. PBL can introduce debit card. So, people will feel more comfortable to expend money.
16. When a customer opens a new account then a cheque book can be delivered at that time in name of welcome account with containing 5 pages.
17. It is observed that bank executives have little idea about their customer   behavior, attempts should be taken to bring customers orientation in banking management.
18. Training programs should be undertaken to develop the interpersonal dealings of Bank employees. It is unanimously expressed that customers expect better dealings from Bank executives.
19. It is noted that “delay in service” is one of the problems faced by Bank customers. Attempts should be made to strengthen the banking procedure. Front line cashiers may be empowered to entertain cheques up to a certain limit on an experimental basis which will save time and cost on the one hand and improved the banking service on the other hand.

Summary and Conclusion

On the base of survey, theoretical analysis and practical experience of 45 day’s internship program, I can draw some conclusions as follows:

In case of Prime Bank Limited, the customer service quality is not satisfactory enough according to the perceptions of the customers, in terms of responsiveness and assurance of the employees in comparison with the studied private commercial banks

The Bank has no segmentation to handle different type of customers. They are equally treating of all the customers to provide service. Nevertheless high status clients seek on extra honor from Bank or institution. Moreover, as the studied branch is in such a location like Gulshan it is more possibilities that high status clients are more likely to seek for quality services from the bank. It has been identified that most the employees are not aware of the segmentation of the customers, which results into dissatisfaction of those customers.

Most of the customers of the bank ask for more quality service especially quick, accurate service and good behavior from bankers as they think a private bank should provide such quality sufficiently. It has been found that inappropriate and slow work process often compels the customers to compare the bank with government bank, which is not a good indication for the reputation of the bank.

Lack of good cooperation is identified among the work procedures and among the employees of the bank which results in lengthiness and ineffective service. The employees of the general banking department did not seem to work as a team to provide effective and efficient services to the customers.

PBL has not provided a centrally online banking services to its customer like other studied banks. If a customer wants the online facilities, he or she will have to apply for that in online form. And Tk.50 will be deducted per month from his or her account as online account charge.So customers usually claim to get centrally online service without extra fee payment.

The person who has an account in PBL, only he or she can apply for pay order, D.D. or T.T. in this Bank.But in other studied banks any one can apply for pay order, D.D or T.T.

ATM (Automated Teller Machine) service recently introduced by PBL, but the number of server i.e. ATM is inadequate considering the volume of customer of prime bank limited.

I have also noticed that PBL has a better position for providing General Banking Services comparing with other private sector Banks. There is a word in business sector “A company must diminish from the market when it cease to serve its customer.” So it is necessary to provide quality of services to make customer satisfied. Thus, an organization can achieve its goal successfully.

Modern Commercial Banking is exacting business. The reward are modest, the penalties for bad looking are enormous. And commercial banks are great monetary institutions, important to the general welfare of the economy more than any other financial institution. It has a vastly sobering and exacting responsibility.

Prime Bank limited is a new generation Bank. It is committed to provide high quality financial services / products to contribute to the growth of G.D.P. of the country through stimulating trade & commerce, accelerating the pace of industrialization, boosting up export, creating employment opportunity for the educated youth, poverty alleviation, raising standard of living of limited income group and overall sustainable socio-economic development of the country.

Prime Bank limited is operating branches on both conventional interests based banking and Islamic Shariah principle based banking. The Islamic banking operations arc completely separate from the conventional Banking. But very recently it is decided that, every branch of Prime Bank Limited will give Islamic banking Service to the customer those who are interested, and a separate corner will be opened to run this operation.  Without banks co-operation, it is not possible to run any business or production activity in this age.

The work experience on Prime Bank Limited, Mirpur-1 Branch, for programs was very interesting for me. All officers were nice to me and very frank to me. I have worked especially General Banking division and other divisions, but I enjoyed working with accounts opening department most. In other departments the job was same (preparing bills, vouchers etc) for everyday, but in account opening department it was dynamic (opening new account, meeting with people etc). I had no schedule time for some important departments like the cash department and the computer department. I gathered information on those departments through verbal consultation with officer of those departments.

The job condition and job environment is very good of Prime Bank Limited, Mirpur-1 Branch. At the same time, the service, which the branch provides to their clients, is also very prompt and quality one compare to other private or foreign banks. So Prime Bank is the bank, which will survive in the banking sector of the world on the slogan “Bank with a difference”.