Report on The National Bank Limited

1.1 Introduction –

Economy of Bangladesh is still surviving to get rid from the world’s most underdeveloped economics. One of the reasons may be its underdeveloped banking system. Since 1990, Bangladesh government has taken a lot of financial sector reforming measures for making financial sector as well as banking sector more sound & transparent, a formulation & implementation of this reform activities have also been participated by different international organization like World Bank, IMF, ADB, etc

There are many functional institutions to control the national economy of a country. Bank is one of the institutions of such kind.

The term bank can be defined as a financial institution that controls monetary flow of a country by means of investment, saving, issuing loans & through other financial activities.

According to Cayern Cross “A bank is financial intermediary-a dealer in loans & debt”.

To serve the purpose, The National Bank Ltd is working in Bangladesh with a theme of “A Bank for Performance with Potential”.

Through there are to make the reports as an internee for the keen interest of my supervisor & the branch of the bank, I have worked on “Deposit Mobilization System”.I have made brief discussion on deposit mobilization activities of the bank.

The first chapter occupies with the overall introduction of the bank, methodologies followed & background of the bank. The second chapter describes the Deposit mobilization operation.

1.2 Origin of the Report –

BBA academic program is the building up to the theoretical knowledge about business administration. This is the base of practical knowledge. One semester internship program is an attempt to provide business students an orientation to a real life business situation in which we can observe and evaluate the use and applicability of the theoretical concepts, which were taught in the classroom. As a student of business administration, I preferred to complete my internship program in a Financial Institution like Bank. Then I got a chance to complete the program in a leading private commercial bank; “The National Bank Limited.” My internship topic is “Deposit Mobilization” and it was assigned to me by the Head Office of The National Bank LTD.It was a challenge for me to complete a report on such an important topic. But I have completed this report successfully thanks to continuous supervision of my academic supervision Mr.Mohammed Masum Billah.

1.3 Background of the study –

This report has been prepared based on one selected listed Bank in Bangladesh. This report has been prepared based on the information of this bank. All information is secondary and collected from Internet, Brochures, annual report etc. Based on this information ratio has been calculated. For the calculation of ratio has been calculated to measure the current position of the Bank. At the same time compare with the market performance.

1.4 Objective of the study –

The study has been undertaken with the following objectives:

1.4.1 Broad Objective –

The main purpose of this report is about is to explore the deposit mobilization activities of National Bank Ltd of Dhanmondi Branch.

1.4.2 The specific objectives –

•   To acquaint with day–to–day functioning of service oriented banking business;
•   To have practical exposure in banks that will help a lot to understand the future courses of the program
•   To be familiar with day to day functioning and service offered by a commercial bank.
•   To observe and analyze the performance of the specific branch and the bank as a whole.
•   To make a bridge between the theories and practices on banking operations.
•   To find out the internal and external lacking in the daily operation that would help to National Bank Limited for more progress.
•   To present an overview of National Bank Ltd.
•   To appraise the performance of National Bank Ltd.
• To apprise financial performance of National Bank Ltd.
•  To identify the problems of National Bank Ltd.
•  To recommend/ remedial measures of the development of National bank Ltd.

1.5 Scope of the study –

The report covers all the best possible ways of fuming efficient information. In my report I have tried at my level best to describe each and every function elaborately.

1.6 Methodology of the Report –

This report has been prepared on the basis of experience gathered during the period of internship. This study would require collection of primary as well as secondary data. But especially emphasizes on primary data. Both quantitative & qualitative research methods will be adopted to collect primary data.

1.6.1 Population –

The total customers of NBL in Dhanmondi branch is approximately 1200.I collected information regarding customers’ satisfaction in my internship period to justify the current position of bank in the view point of customers. Its not possible to collect information from all respective customers because of time limitation of my internship program so I collected my desire information from 40 customers.

1.6.2 Sample of the study –

40 customers are here considered as sample of the study. Out of which 30 customers are chosen from depositors and 10 customers are chosen from borrowers. We assumed these customers would represent the whole customers of National Bank Ltd.

1.6.3 Sample Design –

A non-probability sampling procedure was used for this report because customers were very busy. The judgmental sampling procedure was used here to select the sample units who could allow them to respond to the questioners.

1.6.4 Sampling Techniques –

The study has been conducted by using a non-probability sampling techniques.

1.6.5 Source of information –

The sources refer to the origin from where we have collected all information. The reliability of the report depends on the source of information. Both primary & secondary source of the report writing is discussed below.

1.6.6 The Primary Sources –

For collecting primary data, I had to ask the respective officer(s). Others are like –

•   Direct communication with the clients
•   Exposure on different desk of the bank
•   File study
•   Interviewing the bank’s officials
•  Observation of banking activities

1.6.7 The secondary sources –

Annual Report of National Bank Ltd.;

Periodicals published by the Bangladesh Bank;

Different publications regarding banking functions and credit policies.

1.7 Limitations of the report –

 To prepare the internship I encountered some limitations. The limitations are given below-

•   Limitation of time was a major constraint in making a complete study, due to time limitation.
•   It was too limited to cover all the banking area. Many aspects could not be discussed in the present study.
•   Lack of comprehension of the respondents was the major problem that created a lot of confusion regarding verification of conceptual question.
•   Another limitation of this report is Bank’s policy of not disclosing some data and information for obvious reason, which could be very much useful.

 As being an intern, it also created some problems as I was unable to acquire hands-on-experience in all the departments, due to the bank’s policy of maintaining secrecy and also because I did not get the opportunity in all the departments.

2.1 Definition of Bank –

The Jews in Jerusalem introduced a kind of banking in the form of money lending before the birth of Christ. The word ‘Bank’ was probably derived from the word ‘bench’ as during ancient time Jews used to do money -lending business sitting on long benches.
First modern banking was introduced in 1668 in Stockholm as ‘Savings Pis Bank’ which opened up a new era of banking activities throughout the European Mainland.
In the South Asian region, early banking system was introduced by the Afghan traders popularly known as Kabuliwallas. Muslim businessmen from Kabul, Afghanistan came to India and started money lending business in exchange of interest sometime in 1312 A.D. They were known as ‘Kabuliwallas

A bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. It is an institution for receiving, keeping, and lending money.

Banks have influenced economies and politics for centuries. Historically, the primary purpose of a bank was to provide loans to trading companies. Banks provided funds to allow businesses to purchase inventory, and collected those funds back with interest when the goods were sold. For centuries, the banking industry only dealt with businesses, not consumers. Banking services have expanded to include services directed at individuals, and risk in these much smaller transactions are pooled.

The name bank derives from the Italian word banco “desk/bench”, used during the Renaissance by Florentines bankers, who used to make their transactions above a desk covered by a green tablecloth. However, there are traces of banking activity even in ancient times.In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders would set up their stalls in the middle of enclosed courtyards called macella on a long bench called a bancu, from which the words banco and bank are derived. As a moneychanger, the merchant at the bancu did not so much invest money as merely convert the foreign currency into the only legal tender in Rome—that of the Imperial Mint.

2.2 Law of Banking –

Banking law is based on a contractual analysis of the relationship between the bank and the customer. The definition of bank is given above, and the definition of customer is any person for whom the bank agrees to conduct an account.

The law implies rights and obligations into this relationship as follows:

1. The bank account balance is the financial position between the bank and the customer, when the account is in credit, the bank owes the balance to the customer, when the account is overdrawn, the customer owes the balance to the bank.
2. The bank engages to pay the customer’s cheques up to the amount standing to the credit of the customer’s account, plus any agreed overdraft limit.
3. The bank may not pay from the customer’s account without a mandate from the customer, e.g. a cheque drawn by the customer.
4. The bank engages to promptly collect the cheques deposited to the customer’s account as the customer’s agent, and to credit the proceeds to the customer’s account.
5. right to combine the customer’s accounts, since each account is just an aspect of the same credit relationship.
6. The bank has a lien on cheques deposited to the customer’s account, to the extent that the customer is indebted to the bank.
7. The bank must not disclose the details of the transactions going through the customer’s account unless the customer consents, there is a public duty to disclose, the bank’s interests require it, or under compulsion of law.

2.3 Banking in Bangladeshi Perspective –

Banking is the backbone of the national economy. All sorts of economic & financial activities revolve round the axis of the bank. As the industry produces goods & commodities, so does the banks create & control the money market & promotes the formation of the capital. From the point of view banking a technical profession can be termed as industry. Services to its customers are the products of the banking industry besides being a pivotal factor in promoting capital formation in the country. As all economic & fiscal activities revolve round this important industry, the role of banking can hardly be over emphasized.

Circumstances being such, it becomes imperative to find out the role of banks now playing in the country & analyze its operational aspects so as to ascertain the importance of this fragile financial sector & its overall impact on the national economy. To do this a through study as to its distribution, expansion & contribution is essential to comprehend its past, present & future bearings for the growth & development of the banking sector of the country.

In global context, the role of banks is far reaching & more penetrating in the economic & fiscal discipline, trade, commerce, industry, export & import et5c all are carried through the banks. Banks are the only media through which the international trade & commerce are being carried out .Moreover the entire credit transaction, both national & international is done through the banks.

2.4 History and Heritage of NBL –

National Bank Limited has its prosperous past, glorious present, prospective future and under processing projects and activities. Established as the first private sector Bank fully owned by Bangladeshi entrepreneurs, NBL has been flourishing as the largest private sector Bank with the passage of time after facing many stress and strain. The member of the board of directors is creative businessman and leading industrialist of the country. To keep pace with time and in harmony with national and international economic activities and for rendering all modern services, NBL, as a financial institution automated all its branches with computer network in accordance with the competitive commercial demand of time. Moreover, considering its forth-coming future the infrastructure of the Bank has been rearranging. The expectation of all class businessman, entrepreneurs and general public is much more to NBL. Keeping the target in mind NBL has taken preparation to open 15 new branches and 5 SME centers by the year 2009. In addition we are further expanding our presence through developing and expanding the SME financing, Any Branch Banking, Off-shore Banking facilities

The emergence of National Bank Limited in the private sector is an important event in the Banking arena of Bangladesh. When the nation was in the grip of severe recession, Govt. took the farsighted decision to allow in the private sector to revive the economy of the country. Several dynamic entrepreneurs came forward for establishing a bank with a motto to revitalize the economy of the country.

National Bank Limited was born as the first hundred percent Bangladeshi owned Bank in the private sector. From the very inception it is the firm determination of National Bank Limited to play a vital role in the national economy. We are determined to bring back the long forgotten taste of banking services and flavors. We want to serve each one promptly and with a sense of dedication and dignity.

The then President of the People’s Republic of Bangladesh Justice Ahsanuddin Chowdhury inaugurated the bank formally on March 28, 1983 but the first branch at 48, Dilkusha Commercial Area, Dhaka started commercial operation on March 23, 1983. The 2nd Branch was opened on 11th May 1983 at Khatungonj, Chittagong.

At present, NBL has been carrying on business through its 106 branches spread all over the country. Besides, the Bank has drawing arrangement with 415 correspondents in 75 countries of the world as well as with 37 overseas Exchange Companies located in 13 countries. NBL was the first domestic bank to establish agency arrangement with the world famous Western Union in order to facilitate quick and safe remittance of the valuable foreign exchanges earned by the expatriate Bangladeshi nationals. NBL was also the first among domestic banks to introduce international Master Card in Bangladesh. In the meantime, NBL has also introduced the Visa Card and Power Card. The Bank has in its use the latest information technology services of SWIFT and REUTERS. NBL has been continuing its small credit programme for disbursement of collateral free agricultural loans among the poor farmers of Barindra area in Rajshahi district for improving their lot.Alongside banking activities, NBL is actively involved in sports and games as well as in various Socio-Cultural activities. Upto 2008, the total number of employee of NBL stood at 2,737.

Since the very beginning, the Bank exerted much emphasis on overseas operation and handled a sizeable quantum of homebound foreign remittance. The Bank established extensive drawing arrangement network with Banks and Exchange Companies located in important countries of the world. Expatriates Bangladeshi wage earners residing in those countries can now easily remit their hard-earned money to the country with confidence, safety and speed.

The Bank earned a profit before tax of Tk. 2,828.80 million for 2008, a growth of Tk. 793.70 million or 39 percent, over the normalized profit before tax for 2007.The Bank’s profit after tax and provision for 2008, at Tk. 1,517.40 million reflected an even stronger growth of 22.51 percent or Tk. 1,238.10 million, over the normalized profit after tax for 2007. In 2008 Bank’s revenue was Tk. 8,893.10 million, which was up by Tk. 1,710.50 million or 23.81 percent. The bank’s total loans and advances portfolio was Tk.49, 665.10 million at the end of December 2008 compared to Tk.36, 475.70 million at the end of December 2007. The deposit base of the bank registered a growth of 25.51 percent in the reporting year over the last year and stood at Tk. 60,195.20 million in December 2008. This was achieved with better management of interest margins in volatile market conditions and adequate Balance Sheet growth during the period. Being a regular tax payer, we have made a direct contribution to Government Exchequer of Tk. 761.70 million in the calendar year 2008 against Tk. 449.70 million in previous year registering a staggering growth of 69.38 percent.

National Bank, has now acquired strength and expertise to support the banking needs of the foreign investors. NBL stepped into a new arena of business and opened its Off Shore Banking Unit at Mohakhali to serve the wage earners and the foreign investors better than before.

National Bank, since its inception, was aware of complying with Corporate Social Responsibility. In this direction, we remain associated with the development of education, healthcare and sponsored sports, culture and during the times of natural disasters like floods, cyclones, landslides we have extended our hand to mitigate the sufferings of victims. The bank established the National Bank Foundation in 1989 to remain involved with social welfare activities. The foundation is running the NBL Public School & College at Moghbazar where present enrolment is 1140. Besides awarding scholarship to the meritorious children of the employees, the bank has also extended financial support for their education. It provided financial support to Asiatic Society of Bangladesh at the time of their publication of Banglapedia and observance of 400 years of DhakaCity.

Transparency and accountability of a financial institution is reflected in its Annual Report containing its Balance Sheet and Profit & Loss Account. In recognition of this, NBL was awarded Crest in 1999 and 2000, and Certificate of Appreciation in 2001 by the Institute of Chartered Accountants of Bangladesh.

A team of highly qualified and experienced professionals headed by the Managing Director of the Bank who has vast banking experience operates bank and at the top there is an efficient Board of Directors for making policies.

2.4.1 Vision –

Ensuring highest standard of customers services through best application of latest information technology, making due contribution to the national economy and establishing ourselves firmly at home and abroad as a front ranking bank of the country are our cherished vision.

2.4.2 Mission –  

Efforts for expansion of our activities at home and abroad by adding new dimension to our banking services are being continued unabated. Alongside, we are also putting highest priority in ensuring transparency, accountability, and improved customers services as well as to our commitment to serve the society, through which we want to get closer and closer to the people of all strata. Winning an everlasting seat in the heart of the people as a caring companion in uplifting the national economic standard through continuous up gradation and diversification of our customers services in line with national and international requirements is the desired goal we want to reach.

2.4.3 Commitments –

2.5 Organization structure –

Functional oriented structure Organization structure plays an important role on the profitability of any organization. National bank limited is a centralized organization. Its activities are designed on the basis of traditional banking business, such as credit, international division, investment, administration, and operation etc. NBL has a formal organizational structure that is highly specialized and centralized.

Organizational setup of the National bank Limited is consisting of three organizational domains.

Firstly the central top management, which contains Board of Directors, Managing Director, Additional Managing Director and Deputy Managing director, Major responsibilities of this are to take central decision and transmit it to the second step. Secondly, Central executive level management, which contains executive vice president, senior vice president, vice president and Assistant vice president. Major responsibilities of this part are to supervise and control division/ department.

Thirdly, branch operation management, which contains branch manager and other mid/ lower level management. Major responsibilities of this part are to the 75 branches of this bank and report to the Head office from time to time.

2.6 Management structure of National Bank Ltd –

In 2001 National Bank Limited made commendable progress in all business, like deposit, credit, fund management, investment, foreign remittance, credit card & foreign exchange related business. Bank has expended business activities as holding previously & parallel by diversification its investment to a new product.  As a major financier remarkable portion of total exports of the country. The total assets of the bank were Tk.  48732.1 million As on 31^st December 2001, which is higher than Tk. 1584.02 million than the previous year. This is the sign of good management. The management processes are as follows:

2.6.1 Planning –

The strategic planning approach in NBL is top-down. Top management formulates strategy at the corporate level, and then it is transmitted through the division to the individual objectives. Board of directors or Executive committee usually takes the decision. In this process lower level manager are detached in making process, even brainstorming of lower level manager is absent in decision-making and planning process.

2.6.2 Organize –

Organizing of the National Bank Limited is based on Departmentalization. The organization is divided into twelve departments headed by Executive vice President or Senior Vice President. In the National Bank Limited the whole operation is centralized and authority is delegated by written guidelines. These guidelines are:

Operational manual approved by Head Office, where each aspect or banking operation is elaborately defined.

•   Advance manual including advances limit for different management level.
•   Bad and doubtful recovery manual.
•   Code of conduct.
•   Foreign banking guidelines.
•   Central bank directives.

 Different management position holders in departments and branches practice their authorized power in different cases with administrative loophole.

2.6.3 Staffing –

Entry-level recruitment process of the National Bank Limited is conducted in three ways.   One way is recruitment of probationary officer. Each probationary officer has one-year probation period. After completion of probation period the officer joins as officer grade III (b). The career path of probationary officer is headed toward different management positions. Second way of recruitment is to recruit non-probationary officer who joins as an assistant officer. The career path of an assistant officer is lengthier than probationary officer. The third way of recruitment is recruitment of staff and sub-staff such as typist, messenger, driver, guard, attendant, cleaner and other lower level positions. Promotion policy of NBL is basically based on seniority basis. Sometimes, employees are promoted to the higher position for their outstanding performance. However, it is found that the average length of a position held by an employee is around five years.

2.6.4 Controlling –

The bank has strict control over its all-organizational activities. The Bangladesh Bank directives indicate some control measures. The central bank conducts credit inspection by a team. The National Bank Limited has audit and inspection department to take controlling measures in internal operations. Audit and inspection team send to the branches now and then and is responsible for preparing report that will be submitted to the chief Administration to take necessary actions.

2.7 Departments of NBL –

2.8 Organ gram of NBL

2.9 Hierarchy of NBL –

2.10 Introducing the branch –

National Bank Dhanmondi Branch is one of the largest branches of NBL is located in It started its function in the year 1996.

Presently there are 35 employees in this branch which includes One SVP, 1 AVPs,

3 SPOs, 4 Pos, 18 Officers, 5 SOs, 4 Officers, One assistant and others are messengers, tellers, typist and security guards.

2.11 Deposit Products of NBL –

• Current Deposit
• Short Term Deposit
• Fixed Term Deposit
• Monthly Deposit
• RFC Deposit
• NFC Deposit

2.12 Loan Products of NBL –

• Over Draft
• Lease Finance
• Home Loan
• SME Loan
• Consumer Credit
• Trade Finance

2.13 Card Products of NBL 

• Credit Card
• Power Card

3.1 Introduction –

Internship is a very important part for an internee and it’s also essential for those students who studying in the field of business like Business Administration. During the internship period an internee gather all those practical knowledge experiences which will help him/her in the professional life. When a student going to complete his/her internship program they must follow the rules & regulations where he/she will join for this program. During this period every student get some special job experience which will help an internee to adjust with an office environment.

3.2 Internship Duties –

I have done my internship program on Deposit Mobilization activities of National Bank Ltd in Dhanmondi Branch. During my internship period I have to do several tasks in various departments like account department, loan department, cards department. I would like to discuss my internship duties on the basis of these three departments.

• Account department
• Loan department
• Cards department

3.2.1 Account Department –

The major duties of account department are to open various kinds of deposit accounts and keep records about that accounts. In this department I gather various practical knowledge and those are:

• How to open various kinds of accounts
• How to maintain ledger book
• How to keep records of various accounts
• Verifying the account opening form
• Verifying other documents regarding account opening
• Verifying the customers signature
• Issuing check & cash books

3.2.2 Loan Department –

The duties of loan department are to issuing various types of loans to the respective customers. Security on Drift (SOD) is one of the major loan which is provided by the NBL of Dhanmondi Branch. In this section of banking I got huge knowledge about loans & that are:

• How to maintain every loan records
• How to put information regarding various loan on the computer
• Verify the form
• Verify the related documents
• Issue the application regarding loan to the head office
• Verify the security money / assets
• File up all documents according to the sequence
• Verify the signature & nominee’s name

3.2.3 Cards Department –

It is the department which is very sensitive. In the card department the employee has to very concern about various documents which is related to various cards. This department provides me some theoretical and practical experiences.

• Verify the customer’s yearly income
• Verify the customer’s source of income
• Amount limit of the cards
• Security against the cards
• How to open a cards account
• Which documents are very essential for open a card account
• Verify the customer’s signature
• Issue a letter to the head office regarding to provide a card
• Post the information on the computer

4.1.1 Savings Deposit –

National Bank Limited offers customers a hassle free and low charges savings account through the branches all over Bangladesh.

Benefits (Condition Apply)

 Interest rate of 6.00% on average monthly balance.

 Minimum balance Tk.1000.

 Maintenance charge yearly Tk. 400.

 No hidden costs.

 Standing Instruction Arrangement are available for operating account

Account Opening

 2 copies of recent photograph of account holder.

 Nominee’s Photograph.

 Valid photocopy of Voter ID Card.

4.1.2 Current Deposit –

National Bank Limited offers customers current deposit facility for day-to-day business transaction without any restriction.

Benefits (Condition Apply)

 Minimum balance Tk.2000.

 Minimum maintenance charge yearly Tk. 800.

 No hidden costs.

 Standing Instruction Arrangement are available for operating account.

 Easy access to our other facilities.

Account Opening

 2 copies of recent photograph of account holder.

 TIN certificate.

 Nominee’s Photograph.

 Valid photocopy of Voter ID Card.

4.1.3 Short Term Deposit –

National Bank Limited offers interest on customer’s short term savings and gives facility to withdraw money any time.

Benefits (Condition Apply)

 Minimum balance Tk. 2000.

 Minimum maintenance charge yearly Tk. 800.

 Standing Instruction Arrangement are available for operating account.

Account Opening

 2 copies of recent photograph of account holder.

 Nominee’s Photograph.

 Valid photocopy of Voter ID Card.

4.1.4 Fixed Deposit –

National Bank Limited offers fixed term savings that will scale up your savings amount with the time.

Benefits (Condition Apply)

 Any amount can be deposited.

 Premature encashment facility is available.

 Overdraft facility available against term receipt.

Account Opening

 1 copy of recent photograph of account holder.

 Nominee’s Photograph.

4.1.5 Monthly Savings –

National Bank Limited offers monthly savings scheme for it’s retail customers.

Benefits (Condition Apply)

 Monthly amount can be 500 and multiple of it.

 Premature encashment is available for urgent need.

 Loan facility can be available up to 80% against NMS account balance.

 Standing instruction facility can be available to auto transfer installment to NMS account.

Account Opening

 1 copy of your recent photograph.

 Nominee’s Photograph.

4.1.6 RFC Deposit –

National Bank Limited gives opportunity to maintain foreign currency account through it’s Authorized Dealer Branches. Bangladesh nationals residing abroad or Foreign nationals residing abroad or Bangladesh and foreign firms operating in Bangladesh or abroad or Foreign missions and their expatriate employees.

Benefits (Condition Apply)

 No initial deposit is required to open the account.

 Interest will be offered 1.75% for US Dollar Account , 3.00 % for EURO Account and 3.25% for GBP Account.

 They will get interest on daily product basis on the credit balance (minimum balance of US$ 1,000/- or GBP 500/- at least for 30 days) maintaining in the account.

Account Openingount Opening

 2 copies of recent photograph of account holder.

 Nominee’s Photograph.

 Passport Copy.

 ID of residence in abroad.

4.1.7 NFC Deposit –

National Bank Limited gives opportunity to maintain foreign currency account through its Authorized Dealer Branches. All non – resident Bangladeshi nationals and persons of Bangladesh origin including those having dual nationality and ordinarily residing abroad may maintain interest bearing NFCD Account.

Benefits (Condition Apply)

 NFCD Account can be opened for One month, Three months, Six months and One Year through US Dollar, Pound Starling, Japanese Yen and Euro.

  The initial minimum amount of $1000 or 500 Pound Starling or equivalent other designated currency.

 Interest is paid on the balance maintain in the Account. This interest is tax free in Bangladesh.

Account Opening

 2 copies of recent photograph of account holder.

 Nominee’s Photograph.

 Passport Copy.

 ID of residence in abroad.

4.2 Loan Products of NBL –

• Over Draft
• Lease Finance
• Home Loan
• SME Loan
• Consumer Credit
• Trade Finance

4.2.1 Over Draft –

NBL offers overdraft facility for corporate customers for day-to day business operations.

Benefits (Condition Apply)

 Low charges in overdraft account maintenance.

 Facility is available against deposit receipt or mortgage property.

 Low interest rate 13-16%.

Account Opening

 Introductory current account.

 Others necessary documents as per loan requirement.

4.2.2 Lease Finance –

National Bank Limited offers leasing facility for clients with easy installment facility.

Financing Area

 Capital machinery.

 Different equipments.

 Gas, Diesel generator and Power plant.

 Medical equipments.

 Lift or elevator.

 Inroformation Technology equipments.

 Construction equipments.

 Consumer durables.

Benefits (Condition Apply)

 Competitive monthly rental.

 Tax benefit.

 Fast processing.

 Easy handover after leasing period.

4.2.3 Home Loan –

NBL offers home loan facility for purchasing flats or construction of house.

Benefits (Condition Apply)

 Financing amount extends up to 70% or Tk. 75, 00,000 which is highest of total construction cost.

 Grace period available up to 9 months in flat purchase or 12 months in construction.

 Competitive interest rate.

 No application or processing fee.

Eligibility

Any Bangladeshi citizen or NRB, who is capable of repayment, can apply for this loan.

4.2.4 SME Loan –

NBL offers financial support to small businessmen/enterprise with new products named “Festival Small Business Loan” and “NBL Small Business Loan” has been introduced in the Bank.

Benefits (Condition Apply)

 Maximum Tk.3.00 lac (Festival Scheme) and Maximum Tk.5.00 lac (Small Business Scheme).

 3 Months (Festival Scheme) and 5 years (including 1 month grace period (Small Business Scheme))

 Collateral Free Advance.

Eligibility

Any genuine and small businessmen/ entrepreneurs/enterprise having honesty, sincerity, and integrity.

4.2.5 Customer Loan –

NBL offers consumer credit facility for retail customers.

Financing items

 Electronics consumer products.

 Computer or Computer accessories.

Benefits (Condition Apply)

 Fast processing.

 Competitive interest rate.

 No application or processing fee.

 Easy monthly installment.

4.2.6 Trade Finance –

NBL provides comprehensive banking services to all. types of commercial concerns such as in the industrial sector for export-import purpose as working capital, packing credit, trade finance, Issuance of Import L/Cs,Advising and confirming Export L/Cs. – Bonds and Guarantees .

Benefits (Condition Apply)

 Low interest rate 13.00%-14.50%.

 Minimum processing time.

 Low service charges.

4.3 Card Products of NBL –

• Credit Card
• Power Card

4.3.1 Credit Card –

NBL Credit Card is accepted in many merchant outlet around the world. Our wide range of merchants include hotels, restaurants, airlines, & travel agents, shopping malls and departmental stores, hospitals & diagnostic centers, jewelers, electronics & computer shops and many more.

Benefits (Condition Apply)

  50% Cash withdrawal facility.

 No hidden costs.

4.3.2 Power Card –

NBL Power Card is the first debit card for which you don’t have to maintain any account with our any branch.

Benefits (Condition Apply)

 It is a Pre-paid Card.

 Annual / Renewal Fee Tk. 200/- only.

 May be issued and refilled from RFCD/FC Account.

 Accepted at all VISA POS merchants.

 Cash withdraw at all ATM booths bearing VISA and Q-cash logo (Except HSBC in Bangladesh).

 Drawing of Cash: (i) from NBL ATMs – Free of charges (ii) From ATMs under Q-cash network- Tk.10.00 per transaction (iii) From other ATM – Tk. 100.00 per transaction.

 Cash Withdraw Fee (aboard)-2.00% on the cash drawn amount or US$2.00, whichever is higher.

 Only 1% loading fee against both International and Local Power Card at the time of Refilling.

 Yearly Tk.100 for enrollment of SMS service.

Account Opening

 2 copies of your recent photograph.

 Nominee’s Photograph.

5.1 Introduction –

Bank is the life of modern economy. The survival of a bank depends on how efficiently it can manage it customers with its service & facilities through its Deposit Mobilization. The major work of Deposit Mobilization is to collect deposit from the people it serves & invest that money in various sectors. All of the main activities of a bank run through the deposit it collects from its clients. Such as loan providing to its clients, investing in different sectors, providing interest & so forth. No bank can run without efficient Deposit Mobilization. Today’s business world is depended on banks of each its activities. People want the security of their money, they need a intermediary for payment & even they need to have profit with their idle money. All these activities are entertained by banks through Deposit Mobilization. Bank does not only provide service to the business people but also to the student & other categories through different services.

5.2 Analysis –

From the study, I have made the analysis of some discussion among various accounts of deposits & loan & also its impact on the customer satisfaction level of National Bank Ltd, Dhanmondi Branch, Dhaka.

5.2.1 Current Account –

From the observation of the current account’s graph we find that the amount of current account is TK.25, 85,000 /= & the number of account opening is 8 in January, 2009 which increase gradually in the month of June up to TK. 42,70,000/= & number of account is 25 but suddenly the amount of account and number of account is decrease to TK.18,50,000/= & 6 in the month of April,2009.The reason for decreasing amount of account & number of account at that time there are few customer who open current account in the month of April. Where we also find that the total accounts open in last six months is 84 & the amount is TK.1, 81, 72,000.00/=which shows there are averagely 14 accounts open & average amount is TK.30, 28,666.67/=in every month.

Table – 1

5.2.2 Savings Account –

From the observation of the savings account’s graph we find that the amount of savings account is TK.19, 23,000 /= & the number of account opening is 52 in January, 2009 which increase gradually in the month of June up to TK. 89,37,000/= & number of account is 126 but suddenly the amount of account and number of account is decrease to TK.14,50,000/= & 40 in the month of April,2009.The reason for decreasing amount of account & number of account at that time there are few customer who open current account in the month of April & also the bank decrease its interest rate on that month. Where we also find that the total accounts open in last six months is 447 & the amount is TK. 2, 25, 39,000.00/=which shows there are averagely 74.5 accounts open & average amount is TK. 37, 56,500.00/= in every month.

Table – 2

5.2.3 Short Term Deposit –

From the analysis of the short term deposit’s graph we find that the amount of short term deposit account is TK.1,10,00,000 /= & the number of account opening is 15 in January, 2009 which increase gradually in the month of June up to TK. 5,00,00,000/= & number of account is 26 but suddenly the amount of account and number of account is decrease to TK.83,00,000/= & 8 in the month of April,2009.The bank provides low interest rate on short term deposit at that time & that’s why the amount of account & number of account also decrease at the month of April,2009. Where we also find that the total accounts open in last six months is 101 & the amount is TK. 12, 11, 00,000.00/=which shows there are averagely 16.83 accounts open & average amount is TK. 2, 01, 83,333.33/= in every month.

Table – 3

 5.2.4 Monthly Savings Scheme –

From the study of the monthly savings scheme’s graph we find that the amount of monthly savings scheme’s account is TK.12,25,000 /= & the number of account opening is 8 in January, 2009 which increase dramatically in the month of June up to TK. 6,34,49,000/= & number of account is 15 where suddenly the amount of account and number of account is decrease to TK.7,90,000/= & 7 in the month of April,2009.The bank provides low interest rate on monthly savings scheme at that time & that’s why the amount of account & number of account also decrease at the month of April,2009. Where we also find that the total accounts open in last six months is 64 & the amount is TK. 12, 7, 99, 86,000.00/= which shows there are averagely 10.67 accounts open & average amount is TK. 1, 33, 31,000.00/= in every month.

Table – 4

5.2.5 FDR (12 & 3 Months) –

(12 Months)

From the study of the FDR’s (12 Months) graph we find that the amount of FDR’s (12 Months) account is TK.1,17,70,000 /= & the number of account opening is 20 in January, 2009 which increase dramatically in the month of June up to TK. 2,07,10,000/= & number of account is 39 where suddenly the amount of account and number of account is decrease to TK.83,00,000/= & 12 in the month of March,2009.The bank provides low interest rate on monthly savings scheme at that time & that’s why the amount of account & number of account also decrease at the month of March,2009. Where we also find that the total accounts open in last six months is 155 & the amount is

TK. 7, 96, 57,500.00/= which shows there are averagely 25.83 accounts open & average amount is TK. 1, 32, 76,250.00/= in every month.

Table – 5

(3 Months)

From the study of the FDR’s (3 Months) graph we find that the amount of FDR’s (3 Months) account is TK.88,10,000 /= & the number of account opening is 16 in January, 2009 which increase dramatically in the month of June up to TK. 1,23,00,000/= & number of account is 29 where suddenly the amount of account and number of account is decrease to TK.13,42,000/= & 13 in the month of February,2009.At that time there are few customer who open FDR(3 Months) in the month of February & that’s the reason for decreasing the FDR(3 Months) account in February,2009. Where we also find that the total accounts open in last six months is 123 & the amount is

TK. 5, 21, 42,000.00/= which shows there are averagely 20.50 accounts open & average amount is TK. 86, 90,333.33/= in every month.

Table – 6

5.2.6 Loan –

From the critical study of the loan’s graph we find that the loan provided by the bank is TK.14,47,000/= against security of TK.18,51,000/= in January,2009 which gradually increase up to TK.11,02,31,000/= against security of TK.15,30,97,000/= in the month of June,2009.From the study of first four month we can see that bank provides few loans rather than last two months because bank charge high rate of interest at first four months and that’s why customer didn’t agree to get loan at that time. We also find that the total loan account open in last six months is 112 & the amount of loan is

TK. 17, 44, 67,000.00/= against the security of TK. 26, 03, 34,000.00/= which shows there are averagely 18.67 loan accounts open & average loan amount is TK. 2, 90, 77,833.33/= against the security of  TK.4, 33, 89,000.00/= in every month.

Table – 7

5.2.7 Customer Satisfaction –

Account Opening –

The graph shows that the customers’ satisfaction level regarding account opening in NBL is quite good. Maximum customers of NBL are agreeing that open an account in NBL is easy.

Debit / Credit Card Facilities –

From the observation of the graph we find that maximum customers are agree about this matter where few of them are disagree at this subject. So we can say that the bank provides good facilities of debit / credit card but bank should put more concentration on this sector to turn those customers who are disagree.

ATM Booth Facilities –

From the study of the graph we find that the customers are disagree & strongly disagree about the ATM booth facilities of NBL.Bank should establish some other ATM booth in various location on Dhaka city to satisfy those valued customers of NBL.

Satisfied With Interest Rate –

The satisfaction level is too high than the dissatisfaction level in the view point of bank interest rate that is provided by NBL.So we can say that the customers of NBL is satisfied with the bank interest rate.

Problem in Money Withdraw –

From the inspection of the graph we find that customers didn’t face any problem in withdraw their money where some customer are confused about this matter so it is the responsibility of bank to turn those confused customer in to a satisfaction level.

Cooperativeness with Customers –

The graph shows that the satisfaction bar is quite higher than the dissatisfaction bar. So from the graph it is clear that customers believe that the staffs are cooperative.

Automation & Security –

From the observation we find that the customers are very satisfied with its automation system & security system because the graph shows that maximum people believe the bank in the view point of these two matters.

Satisfied With Services –

Service of the bank is quite good. Most of the customers are satisfied with its service. So it is up to the bank to retain the level or even make it higher for along time.

5.2.10 Comments of Borrower’s about NBL –

• Bank should reduce the interest rate on various types of loans.
• SOD (Security on Drift) is a very good loan system of NBL.
• The bank should provide education loans, micro credit loans etc.
• Bank’s employees are very friendly especially who working in loan section.
• Bank should reduce the amount of securities against various loans.
• The Loan services and procedures of NBL are quite good.
• The bank should increase the amount about various loan schemes.
• The charges of loan account should reduce by the authority.

5.3 Findings –

During the period of my internship program I collected various information according to various types of deposit & loan accounts. On the basis of these information and critical observation I find that the Dhanmondi branch of NBL is in a good position. From my point of view I discuss these informations in below:

• From the observation of various deposit accounts I find that the amount as well as the number of accounts is increasing dramatically day by day. In the month of April, 2009 the most accounts are decrease due to some reasons like rate of interest, account opening is low etc.

• We can see the performance of monthly savings scheme is very good than other deposit accounts. Other accounts like savings & short term deposit accounts are also appreciated.

• The authority should more concern about current and FDR accounts because the charts & graph shows that these two types of accounts increase but the level of increasing is not as like as other deposits accounts.

• The loan provided by the Dhanmondi branch is significantly increasing from last six months but the rate of increase is not sufficient.

• From the study of the chart & graph I find that the bank provide averagely TK.26,70,250/= from January to April but in last two months the average loan is increase & become TK.5,55,15,500/=.So the authority should give more concern to increase the bank loan.

• I interviewed 30 deposit customers & they think that the bank should provide online services, establish more ATM booths, reduce the processing time of application regarding various types of accounts, increase the money limit on credit card, reduce service charge etc.

• I also interviewed 10 loan customers & they suggest that the bank should give more emphasize on these matters like provide education loan, micro credit loans, reduce the amount of securities against loans, the rate of interest should decrease etc.

• The charts & graphs regarding customers’ satisfaction on deposit & loan account also shows that the customers of dhanmondi branch of NBL is satisfied with the bank services bur they want some improvement in the sectors which is already mentioned in the above. If dhanmondi branch of NBL can improve their service level than the bank can earn more profit & more customers’ satisfaction

Conclusion –

Bank is the blood of present financial system. Deposit Mobilization is the bread & butter of any bank. The endurance of any bank depends on how competently it can administer its customers with its services & facilities through Deposit Mobilization. I have work with National Bank as an internee for three months & found many positive reasons of people trust on NBL.I have acquainted with the deposit mobilization procedure of the NBL as it was the part of my internship program. It is an institution which is not only serving people with quality & special service but also serving with great courage. For this reason, the report of NBL is drastically increasing from last year. The analysis shows that NBL has secured its position in the banking business of our country. The track record of NBL mentioned on the analysis is a proof of its tremendous success in banking business. The comparative analysis with some other banks verifies the competitiveness of deposit mobilization of NBL.

However, people do trust on the officers & listen to their advices. The bankers also provide counseling to the clients who need to improve themselves financially. The deposit of NBL is increasing from its inception because people trust on the bank & the relationship with NBL maintains with its clients.Thus, I conclude basing on the analysis that the theme line of National Bank Ltd appropriately matches with the services it offers. The theme of National Bank Ltd is “A Bank for Performance with Potential”.

Recommendation 

It is also very difficult for me to give any recommendation with my little working experience but I have tried as my best to give best recommendation above shortcomings (its may be its not sweet able   for NBL)

•  NBL should give more freedom to their branches for taking decisions and their head office should take decision more quickly.
•  NBL should build separate loan recovery division if it happed then their classified loan amount will reduce and they can invest more.
•  NBL, Inter Bank Transaction is made by advice but it is unsecured for bank so NBL have to build net working system between branches and head office.
•  NBL should go through the online banking as early as possible for better service to the customer.
•  NBL should increase own investment in different sectors as like Islami Bank Ltd. if they can increase their own investment then their cost of capital will reduce.
•  NBL, Human Resources Department should train their employees with computer    knowledge and their Human Resources Department should arrange training program frequently.
•  NBL, management should take decision more quickly.
•  NBL should use group incentives so that employee can share their experience, strength and can work smoothly.
• Their statement should be computerized which is cost effective and safe.
•  It has been seen that NBL marketing activates are not sufficient but now a day’s proper marketing is important for creating good image in target customer mind. They should increase promotion campaign and they should participate in social activities for creating good image in target customer mind.