Executive Summary:

This is the internship report based on the three months long internship program that I
had experienced in the Head Office of BRAC Bank Ltd. From May 18, 2008 to
August 17, 2008 as a requirement of my BBA program under Department of School
of Business, North South University.

This report is divided into two broad parts: one is the organization part and another is
the project part. In the organization part, I introduced the Latest and one of the largest
banks of our country— the BRAC Bank Ltd. On the other hand, in the project part, I
focused on the findings, graphs and analysis of the research.

The topic of my report was “Premium Banking Service to the customers”. My

focus of the report will be basically on the functions of Premium Banking only. The
specific objective of this study was to explore the relationship between client
satisfactions and the degree of consumer service delivery, the degree of CSD in
context of the BRAC Bank Ltd.

While discussing the different aspects and functions of the bank, priority has been
given to depict the real situation as far as appraisal and management system of BRAC
Bank Ltd. are concerned by employing the experience gathered during the internship
program. Analysis on the findings is basically done to sort out the major aspects of the
General banking system and to draw some significant inferences. At the same time for
easier understanding of the report, supporting topics and terms are explained in light
of textbooks and regulatory guidelines. BRAC Bank is a third generation bank in the
growing banking sector of Bangladesh.

As a part of my internship program I got a chance to work at this bank for a period of
three months. During this period I have learned about this organization and its work
environment, which inspire me to work on my topic.

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 Chapter 1
Organization Part

2
Introduction:
For a country, the banks are the heart and soul of the financial system. Therefore, the
sound and efficient performance of the banks are very much essential for the
sustenance of the financial system or economy of the country. Like other
organizations, banks are also dependent upon the consumers for their survival in the
market.

Modern banks play vital role in promoting economic development of a country.

Banks provide necessary funds for executing various programs underway in the
process of economic development. They collect savings of large masses of people
scattered through out the country, which in the absence of banks would have remained
idle and unproductive. These scattered amounts are collected, pooled together and
made available to commerce and industry for meeting the requirements.

BRAC Bank Ltd. is one of those banks that plays important role in the economy of
Bangladesh. There are thirty six branches of BRAC Bank all over the country. The
activities of different department are differences as per the important of the
department. The format of the report will be followed as per the guideline given by
the North South University authority.

History of the BRAC Bank:

BRAC Bank Ltd, a full service commercial bank with Local and International
Institutional shareholding, is primarily drive by creating opportunities and pursuing
market niches not traditionally met by conventional banks. BRAC Bank has been
striving to provide “best-in-the-class” services to its diverse range of customers
spread across the country under an on-line banking platform.

Today, BRAC BANK Limited, one of the latest generation of commercial banks
which started its journey on the 4th of July 2001 with a vision to be the absolute
market leader through providing the entire range of banking services suitable to the
needs of modern and dynamic banking business as well as to promote broad based
participation in the Bangladesh economy through the provision of high quality
banking services. The unique strength of BRAC Bank lies in the fact that BRAC one

3
of the world’s largest private development organization is its key shareholder and the
bank’s vision are thus aligned with those of BRAC.

The reason BRAC Bank is in business is to build a profitable and socially responsible
financial institution focused on markets and businesses with growth potential, thereby
assisting BRAC and stakeholders build a “just, enlightened, healthy, democratic and
poverty free Bangladesh. BRAC Bank fulfils the purpose by reaching for high
standards in doing everything for their customers, shareholders, associates and
communities upon, which the future prosperity of their company rests. BRAC Banks
envisages providing mass financing by increasing access to economic opportunities
for all individuals and business in Bangladesh with a special focus on currently under-
served enterprises across the rural-urban spectrum.

BRAC Bank is surviving in the large banking arena through its unique and
competitive products and it is the only local bank providing 100% integrated on-line
banking services. BRAC Bank Limited consists of four major business divisions
namely Corporate Banking Division, Retail Banking Division, Small and Medium
Enterprise (SME) and Foreign Trade & Treasury. Corporate Division provides full
range of commercial banking products and services to any potential corporate clients
including multinationals, large or medium local corporate, NGOs, institutional bodies.
Retail Division offers a wide array of lucrative and competitive banking products to
the individual customers of the bank. Currently there are six lending products and a
number of other attractive new products will be launched shortly. It also offers
different types of term deposit scheme and attractive STD & Savings deposit schemes
giving interest on daily balance.

As part of the total banking solution it has introduced an innovative and one of its
kinds Remittance Service under the style and name “Secured & Easy Remittance
Service” (SERS). The aim of the program is to introduce easy and secured remittance
service whereby people will be comfortable and secured in remitting funds without
hassle and delay. Using the countrywide network of BRAC comprising more than
1100 field offices the SRS will ensure secured and only 24 hour lead time delivery of
remittance anywhere in Bangladesh.

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BRAC Bank Limited, hereinafter called BBL, is a fist growing third generation-
scheduled commercial bank incorporated on 20th May 1999 as a public limited
company under Companies Act, 1994 with multinational collaboration including IFC
of The World Bank Group & Shore Cap. BBL started its operation on 4th July 2001.
The main sponsor of the bank is the BRAC. The Bank is pioneer and focused on
pursuing unexplored market niches in the Small and Medium Enterprise Business,
which hitherto has remained largely untapped. BBL believes, this sector of the
economy can contribute the most to the rapid generation of employment in
Bangladesh. BBL caters the banking services to its rapidly growing customers
through 18 branches and 292 SME Unit Offices.

Shareholders of BRAC Bank Ltd:

The shareholders of BRAC Bank are as follows:

Table 1.1: Shareholders of BRAC Bank

Shareholders Percent
BRAC 31.74%
IFC 9.50%
Shore Cap International 8.76%
General Public through IPO 40%
Non-Residents Bangladeshi's 5%
Mutual Funds through IPO 5%
Total 100%

Fig. 1.1: Shareholders of BRAC Bank

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Board of Directors:
Table 1.2 presents the names of BRAC bank directors and their status.
Table 1.2: Board of Directors of BRAC Bank
SL.# Name Status with the Bank
01. Mr. Muhammad A. (Rumee) Ali Chairman
02. Mr. Quazi Md. Shariful Ala Director
03. Mr. Mark A. Coffey(Nominated by SHORECAP Director
INTERNATIONAL LIMITED)
04. Ms. Tamara Hasan Abed Director
05. Mr. Shib Narayan Kairy Director
06. Ms. Nihad Kabir Director (Independent)
07. MR. A.E.A. Muhaimen Managing Director and
CEO

Management of BRAC Bank Ltd:

The Board of Directors is the top management and policy-making body of BRAC
Bank limited. Presently the Board consists of a chairman and four directors. It is to be
noted that the Managing Director, is also a member of the Board. The Directors are
appointed from amongst those who have had experience and shown capacity in the
field of finance and banking, trade, commerce, industry agriculture.

The Chief Operations Officer executes all the activities under the direction of the
Board. The officers and the other line and staff personnel are appointed by Bank’s
own Recruitment Committee.

Managing Director

Deputy Managing
Director

EVP & Chief Operation

Officer

VP & Head of SME

A VP & Head of Credit

Fig. 1.2: Management Structure

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Management Team:

A.E.A Muhaimen Faruk Ahammad

CEO &Managing Director Head of Financial Administration
Kaiser Tamiz Amin Farzana Chowdhury
Chief Operations Officer Head of Small & Medium Enterprise (SME)
Firoz Ahmed Khan Md. Rahmat Pasha
Head of Retail Banking Head of Treasury & Financial Institution
Md. Rafat Ullah Khan Khwaja Shahriar
Head of Credit Head of Corporate Banking
Rais Uddin Ahmad Shah Alam Bhuiyan
Head of Risk Management Head of Enterprise Risk Management
& Company Secretary Mizanur Rahman Chowdhury
Naushad Hussain Head of Technology
Head of Probashi Banking Abedur Rahman Sikder
Tahniyat Ahmed Karim Head of Marketing & Corporate Affairs
Head of Human Resources
Md. Sarwar Ahmed
Head of Impaired Asset Management

Vision:
Building a profitable and socially responsible “Double Bottom Line” driven financial
Institution focused on pursuing existing and underserved markets and business with
growth potentia, thereby assisting BRAC and stakeholders build a “just, enlightened,
healthy, democratic and poverty-free Bangladesh”.

Highlight of Long Term Budget:

Table 1.3: Long Term Budget

PARTICULARS ACTUAL (2008) PROJECTED (2009)
Num. Of Branch 36 60
Unit Office 381 450
Staff 2400 4100
Profit Before Tax 60(crore) 232 (crore)
ATM 78 50
POS 350 500

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Mission:
 Sustained growth in ‘Small & Medium Enterprise’ sector.
 Continuous low-cost deposit growth with controlled growth in Retail Assets.
 Corporate Asset to be funded through self-liability mobilization. Growth in
Assets through Syndications and investment in faster growing sectors.
 Continuous endeavour to increase fee based income.
 Keep our Debt Charges at 2% to maintain a steady profitable growth.
 Achieve efficient synergies between the Bank’s branches, SME unit offices
and BRAC field offices for delivery of Remittance and Bank’s other products
and services.
 Manage various lines of business in a fully controlled environment with no
compromise on service quality.
 Keep a diverse, far flung team fully motivated and driven towards
materializing the Bank’s vision into reality.

Goals:
 Create a new breed of entrepreneurs.
 Build awareness among Expatriate Bangladeshis to expand use of Banking
channels for remittance.
 Expand use of technology and plastic to provide financial solutions to the
mass and under-served market.
 Synergy between financial and non-financial institutions to develop innovative
financial products for customers across rural-urban spectrum.

Objectives of the Bank:

 To provide wide range of financial services professionally, efficiently and
competitively to achieve per-eminent position in chosen market.
 Diversity revenue stream through product innovation.
 A Well-diversified credit portfolio, which produces a reliable and consistent
return to investment.

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Values of the Bank:
Our Strength emanates from our owner BRAC. This means, we will hold the
following values and will be guided by them as we do our jobs.
 Value the fact that we are a member of the BRAC family.
 Creating an honest, open and enabling environment.
 Have a strong Customer focus and build relationships based on integrity,
superior service and mutual benefit
 Strive for profit & sound growth.
 Work as a team to serve the best interest of our owners.
 Relentless in pursuit of business innovation and improvement.
 Value and respect people and make decisions based on merit.
 Base recognition and reward on performance.
 Responsible, trustworthy and law-abiding in all that we do.

Target Market:
 Pharmaceuticals, toiletries, chemicals and pesticides.
 Power Generation, oil exploration, industrial and household gases (Liquid
Petroleum Gases etc.).
 Edible Oil.
 Bulk Trading essential Commodities, Industrial Raw Materials, Agricultural
Inputs, and Cement.
 Garments, Textiles and related backward Linkages industries including
sinning, knitting, yam, garments accessories etc.
 Food Processing and Beverage Industries.
 Cable and Cable wire.
 Information Technology.
 Leasing companies/Non banking financial institutions.
 Health Service Industry.
 Non Governmental Organization (N.G.O) and other international
Development Organization.

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  Importers/Dealers of machinery, industrial, electrical equipment.
 Educational Institutions.
 Bone china, ceramics, melamine, plastic products.
 Manufacturing and Trading of Consumer Durables.
 Telecommunication.
 Contractor Finance.
 Ship Breaking, Re-rolling, Corrugated Iron (CI) Sheet Mfg. and related
business.
 Air Lines, Shipping Lines, Freight Forwarders, Testing and Inspection
agencies.
 Footwear and Leather.
 Tobacco Products.
 Tea.
 Importers, Whole seller, Retailer.
 Individuals.

Target Customer Group:

 Leading Domestic Organizations,
 Corporate and Trading Houses,
 Local medium and large corporate,
 Multinational Companies (MNCs’).
 NGOs’,
 Educational Institutions,
 Individual

Information Technology in Banking Operation:

BRAC Bank Limited has adopted automation in banking operation from the first day
of its business. The main objective of this automation is to provide efficient and
prompt services to its valued clients. At present all the branches of the bank are
computerized to provide best security to the information. BRAC Bank Limited is
providing comprehensive range of banking services with utmost care and efficiency to

10
its Consumer. Ascend Millennium Banking System is developed and customized by
South Tech Ltd. Several numbers of system analyst and programmers are dedicated
towards development and customization of the software and after sale service.

Technology:
BRAC Bank Limited Brings 36 branches under one umbrella, introducing SMS
Banking, Internet Banking and interfacing ATM Network through the Online Banking
software which has been the major achievements. Consequently our Consumer is
enjoying services from Anywhere Anytime. BRAC Bank is the first bank to online the
rural branches.

Challenges:
 Ensure compliant BRAC Bank.
 Achieve satisfactory Audit rating for CSD.
 Ensure efficient CONSUMER services to our internal and external clients.
 ATM support.
 Smooth operation of CSD functions.
 Develop and retain efficient human resources for CSD team.

Initiatives:
 Strength CSD tools by developing CSD Operation, monitoring processes and
efficient people.
 Develop and implement quarterly self audit questionnaire.
 Set Smooth and efficient Service delivery Process for our CONSUMER.
 Develop efficient working force by providing hands on training, relevant HR
training courses.
 Conduct in-house training program on Bangladesh Bank & BRAC Bank
Regulations.

Corporate Social Responsibility:

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Just as BRAC Bank have a corporate identity and also a social identity too. As a bank
BRAC Bank are socially responsible. Fifty percent of It’s Loan portfolio is diverted to
Small and Medium Enterprise banking, and as a financial intermediary it channel
funds from the surplus ends to the needy. Country-wide network of SME Units cater
to the needs of small entrepreneurs to help them build their asset base. BRAC Bank is
market leaders in SME, striving for socio-economic upheaval in Bangladesh. A
portion of its revenue is channelled to support BRAC schools, where children study
for free. 70% of these children are female.

The Brand Promise of BRAC Bank Ltd:

The brand promise of BRAC Bank Ltd. is – Astha Obichol. It is a Bengali word that
denotes trust on BRAC Bank remains the same no matter what in terms of quality
service.

LOGO:
The logo of BRAC Bank has been prepared keeping in mind the goal of the
organization. The square structure of the logo means solid and strong. The Golden
color in the lower portion of the logo means the ‘Golden Bangladesh & her fertile
land’. The Blue color in the upper portion means ‘the sky with enormous & unlimited
opportunity’. The white colour curve means ‘Growth and Progress’. White circles in
the blue color mean the flashing sun that gives light to everywhere.

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Fig. 1.3: BRAC Bank Logo

13
Organization Structure and Responsibilities:
The five members if the Board of Directors is responsible for the strategic planning
and overall policy guidelines of the bank. Besides, there is an audit committee in the
Board to oversee compliance of major regulatory and operational issues.
The CEO& MD, Deputy MD and group executives are responsible for achieving
business goals and overseeing the day today operations. The CEO and MD assisted by
a senior management group supervise operation of various decisions centrally and
coordinate operation of branches.

There is also a management committee comprising member of the senior executive

headed by CEO and MD to look into all operational function and risk management of
the bank. The workflow of the organizational structure is given in Fig. 1.4.

Human Resource Development:

Human Resources Development activities aim at fulfilling the bank's Mission. One of
their four major missions is to: "Provide service to our clients with the help of a
skilled and dedicated workforce whose creative talents, innovative actions and
competitive edge make our position unique in giving quality service to all institutions
and individuals that we care for."

Skilled and dedicated workforce with creative talents, innovative actions are not
always readily available. Appreciating the scarcity of such manpower, the bank from
the very beginning laid importance to HRD that conceptually includes activities like:
pre-recruitment drill, recruitment, induction, training in the Academy, job rotation,
placement & posting, reward and promotion.

Management of BRAC Bank not only appreciates the need of skills required for day
to day banking but also realizes the need for skills to meet the global & national
financial and economic environments that are changing fast. Meeting the needs of
new skills arising out of Financial Sector Reforms Program (FSRP) is also a major
concern of the management. Therefore they have a training academy that is fully
equipped with a professional library, modern training aids and professional faculty.

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The training academy of BRAC Bank re-designs its courses and programs regularly to
meet the requirement of new skills and develop its human resources accordingly.

Fig. 1.4: Workflow of the organizational structure

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Workforce:
At present there are 2400 employees working for the company. Among them 1020
employees are woman where as the number of female staffs were only 30 at the very
beginning.

Branch Network:
There are 36 branches of BRAC Bank limited all over the country. All the branches
are involved in providing service to its clients in various ways. There are 17 branches
in Dhaka, 8 branches in Chittagong, 5 branches in Sylhet, 3 branches in Jessore and
Narshingdi and also 2 or 1 branches in every remote districts of the country to serve
its customers the very best.

Fig. 1.5: BRAC Bank branches in Bangladesh map

Different Departments of BRAC Bank Ltd.:

There are many concern departments, which are always taking care to give proper and
adequate service to the clients. Different departments of BRAC Bank are follows:
 Corporate Banking
 Retail Baking
 Trade Finance
 SME (Small & Medium Enterprise) Division
 GIS (General Infrastructure Service)

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  Credit Division
 CSD (CONSUMER Service Delivery)
 Remittance
 FAD (Financial Administration Department)
 Treasury
 CID (Channel Infrastructure Department)
 IT (Information Technology)
 HRD (Human Resource Department)
 Risk Management
 LA (Loan Administration)
 Marketing & Product Development

CORPORATE BANKING:
The Corporate Banking Division provides full range of commercial banking products
and services. Many Departments such as Foreign Trade, Treasury, and Credit
Administration etc. play the support role for a comprehensive range of service to the
corporate Banking Division. BRAC Bank’s Corporate Banking team exists to provide
both banking services and a financial partnership with local large and medium
corporate, trading houses and joint ventures. As the financial partner of choice for the
corporate sector

 Corporate Banking Structure:

The Corporate Banking Division has a centralized structure through on-line banking
system. Any credit facility is processed at the Corporate Banking Division, Head
Office. After sanctioning of the facility, the limit is put online and the CONSUMER
can enjoy the facility from any of the BRAC Bank branches. Strict adherence to
internal control guidelines and other legal and statutory compliance are followed. The
Credit approval process involves separate Credit Division, the Managing Director and
finally the Board.

 Product/Service objectives:
The Corporate Banking Group would try to serve the financial market of the country
with the following objectives.

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 • To develop and sustain mutually beneficial CONSUMER relationships
based on high quality service and innovative products.
• Maintaining a diverse and quality asset base and pursue a sustainable
growth strategy.
• To pursue a management style that contributes to the well-being and
development of a fully responsible and accountable workforce under a high
corporate standard and business ethics.
• To provide and deliver services in a cost-effective manner.

RETAIL BANKING:
Most of the Bank in our country are operating locally basis. So, most of their
functions are concentrated on retail banking. BRAC Bank Limited is not exception of
them. It has 36 Branches all over Bangladesh. The braches are as follows:

Table 1.4: Branches of BRAC Bank

Branches of Dhaka:  Sonagazi  Beani Bazar
 Gulshan  Narayangonj  Zinda Bazar.
 Nawabpur  Rampura  Biswanath
 Moghbazar  Mohammadpur  Moulovibazar
 Keranigonj  Nabiganj
 Motijheel Branches of Chittagong:

 Dhanmondi  Agrabad Other Branches

 Banani  Momen Road  Comilla

 Ganakbari  Halishahor  Rajshahi

 Sat Masjid.  Jessore

Branches of Sylhet:
 Uttara
 Sylhet
 Mirpur

There is One Sales Center in Badda, which sells A/C of all branches. BRAC Bank has
planned to open more Branches Within this year all over the country. There are more
than 410 unit offices under SME division to support retail banking. Retail banking
offers every facility except Corporate Transaction.

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TRADE FINANCE:
Trade finance originally facilitates “International Business” They handle L/C (Letter
of Credit) and do necessary activities related to international trade. Check validity &
authentication of trade license; import Registration Certificate, TIN Certificate, Vat
Registration Certificated, and Insurance Cover Note. Received L/C LIMIT from
Corporate. Signature Verification of Import on L/C App. Form & Performa Invoice
check importer’s Signature on L/C AF & IMP form, available balance of Importer’s
A/C. L/C Liability Create, Margin & Income realized From Importer’s Account, entry
to L/C ledger & register book. LC Proposal sent through SWIFT after proper
authentication.

Trade Finance Check EXP certificate, C&F certificate Issue, NOC Certificate Issue,
Intimate to Exporter after Receiving Remittance. Collect necessary documents from
Exporter & Credit export proceeds if documents found in order. They pass necessary
voucher/ register Entry. Send Export documents for Collection to Foreign Bank (bill
of exchange, Invoice Packing List, Certificate: Of Origin, Bill Of Lading or Airway
Bill, GSP Certificate) with Bank Forwarding & document endorsement. Receives
remittance credit proceeds to party A/C after realized necessary charges.

SME (Small & Medium Enterprise) DIVISION:

This department of BRAC Bank Limited works widely over the country. There are
more than 300 unit offices of SME division all over the country sell different type of
loan to different small and medium enterprise. They provide loan, which are to be
paid in installment. This department also monitors the recovery of the loan and in case
of inconsistency they take necessary action to recovery the loan.

 Product Features of SME:

There are 4 products of SME:
• Aroggo Rin
• Apurbo Rin
• Pathshala Rin

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 • Supplier Finance

GIS (General Infrastructure Services):

 Present infrastructure:
• Senior Manager, GIS
• Manager, Procurement
• Manager, Operations
• Manager, Logistics
• Manager, Premises and Maintenance

 Procurement:
• Need Assessment, Evaluation and Setting the target of procurement
• Procedural formalities in terms of approval for procurement
• Vendor management & negotiation
• Cost effectiveness
• Quality control
• Timely supply
• Supply chain management.

 Operation:
• Handle bog and resolve all GIS related queries in 24-hour basis in the form
help desk concept.
• Follow procedures for continuation of business and crisis management.
• First contact person to receive and record complaints including all types of
requisitions and forward those to concern GIS units.
• Handle all security related issues.
• Manage and control dispatch.

 Logistic:
• Arrange facilities and services for the key bank events.
• Maintain Petty cash to rent up sudden logistic needs.

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 • Manage vehicle fleet of the bank.
• Negotiate contracts for provision of outsourced services.
• Official Trail Arrangements.

 Premises and Maintenance:

• Ensure comfortable and secure working environment.
• Asset management.
• Insurance coverage of all bank assets.
• Manage all related issue of Maintenance

CREDIT DEPARTMENT:
 Basic Definition:
A Contractual agreement in which borrower receives something of value now agrees
to repay the lender at some later date, Loan-an arrangement in which a lender give or
property to a borrower, and the borrower agrees to ruler the property or repay the
money, usually along with interest, at some future point(s) in time. As Financial
intermediaries, Lending is one of the main functions of a Bank.

 Functions:
At present, Credit Division performs following activities:
• Credit Approval/Process:
1. Retail Credit
2. Corporate Credit
3. SME (From 15 to 30 lac)

• Collection & Monitoring Activity

1. Central Collection Unit (CCU).

 Objectives:
• Managing credit exposure
• Managing credit risk
• Compliance with the issue of Bangladesh Bank & BRAC Bank Ltd.

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• Support all businesses of the Bank
• Collection of Overdue loans
• Recovery of Bad debts.

 Products:
• Credit Division supports the businesses products of following Divisions:
 Retail
 Corporate
 SME

• Category of Products on the basis of security:

 Secured Facility
 Partly Secured/ Unsecured Facility

• Secured Facility:
Which is baked by 100% Cash Covered/ other security
 Secured Loan
 Secured Overdraft
 Premium Term Deposit (PTD)
 Car Loan
 Home Loan

• Basic Elements for Judging a Borrower:

5 C’s of Credit
 Character
 Capacity
 Capital
 Conditions
 Collateral

• Source of Borrower Study:

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  Loan application
 Financial statement
 Study of Account
 Market reputation
 Bangladesh Bank
 Different Banks
 Personal Interview
 Personal Visit
 Net-Worth Position
 Other Source:
- Registration Office
- BRTA
- Press report

• Credit Principals for Lending Decisions:

 Assess the Consumer’s character for integrity and willingness
to repay
 Only lend to the Consumer who belongs to a fixed Income
group or a stable business income.
 Only lend to the staff of widely known and highly reputed
companies having an unquestionable business track record.
 Only lend to the staff of such companies which have
professional career advancement platform for its people.
 Assess carefully the Integrity and loan repayment capacity of
the guarantor.
 Plan for the possibility of default
 Use common sense and past experience in conjunction with
thorough evaluation and credit analysis. Do not base decisions
solely on Customer’s reputation, accepted practice, other lender’s
risk assessment or the recommendations of other officers.
 Behave ethicality in all credit activities.

23
 Be Proactive in identifying, managing and communicating
credit risk
 Be diligent in ensuring that credit exposures and activities
comply with the requirement set out in this Product Program.

24
CONSUMER SERVICE DELIVERY DEPARTMENT:
It is the processing Center for BRAC Bank. All the back office activities take place in
this department. It performs the following activities:

• Ensure cheque requisition requests are attended.

• Ensure cheque Books are printed and checked as specified in the requisition
request.
• Mailing of cheque books to the respective branch.
• Ensure cheque leaves stock register are properly maintained.
• Ensure ATM Card requisition requests are attended.
• Ensure ATM Cards Are checked as specified and delivered to the respective
locations.
• Ensure Blank ATM Cards are balanced as per inventory register.
• Ensure Cheque Books, ATM Cards are delivered to the respective branches at
the specified timeline.
• Mailing welcome letter.
• Mailing FDR renewal.
• Dormant account activation.
• Reactivation of Dormant/Closed Account.
• Account opening data entry in system.
• Maintain sufficient stock of Govt. Bonds/Coupons.
• Timely reporting of reimbursement/Claiming statement of Govt. Bonds.
• Statement of commission earning of Govt. Bonds on a monthly basis.
• Welcome Account Opening.
• Change of Address in software system.
• Changing made of operation of company account.
• Opening of Insta Cash Account.
• Printing and mailing of account statement month/quarterly/half yearly/yearly.
• Maintain sufficient of statement letter sheet/welcome letter/letter half
paper/ATM card holder/ATM Welcome letter/Terms and condition/Window
envelope/ATM Bank Card/Cartridge.

25
 Department of My Internship:
I have worked in Premium Banking which is the part of the Retail Banking. To work
in the Premium Banking I also have to do the other related departments’ works which
are Retail Banking, CSD Department, Card Department, and Loan Department etc.
which I will describe in the following segments.

Department Goals:
 Premium Banking highlights the importance of a small customer segment,
which holds a major stake of BRAC Bank’s Retail Banking portfolio.
 Providing relationship-based banking services to this customer segment.
 Premium Banking will safeguard the Bank’s Retail and SME portfolios.
 Add these portfolios to increase in the Bank’s liability-base.

Retail Banking:
“Retail Banking Unit” has positioned itself as a major channel of business, focussed

Retail
Bankin
g

Alternative Premium
Delivery Banking
Channel

Service Non-Funded
Quality Business
(NFB)

Distributio Credit
n Collection
Unit (CCU)

Sales Business
Intelligent
Unit
Fig. 1.6: Retail Banking

26
to meet banking needs of individuals. This unit takes foremost funding responsibility
of the bank and is committed to offer multifarious services to entire customer base of
the bank through Branches. Alternative Delivery Channels, Premier Banking services
and literally taking Retail Banking products to doorsteps through Direct Sales force.
Of many deliverables, “Retail” concentrates mostly to ensure ‘service excellence’
across all points of services, initiates regular research works through “Service Quality
Unit” and tailors superior service propositions for valued customers.

Premium Banking:
 INTRODUCTION:
Premium Banking is a personalized, prioritized and privileged service that aims to
provide customized banking solutions to simplify a customer’s life. High-net-worth
customers and other VIPs compromise the target market. Premium Banking (PB) is
the exclusive service of banking activities. Total banking procedure has a special
consideration on this department. Premium Banking has been established with one
purpose: to provide the best possible banking solutions for you, a highly valued
BRAC Bank customer. We recognize that you have worked hard to create the best
possible future for yourself, and we are dedicated to enhancing that future. Premium
Banking is our way of personality acknowledging your relationship with BRAC
Bank, and with this innovative approach, the future of banking is truly exciting.

 ELIGIBILITY CRITERIA (REGULAR):

Maintenance of a minimum balance of deposits or cumulative credit exposure, or a
combination of both (i.e. funds under management), is the basic eligibility criteria.
The minimum FUM for an individual/joint accountholders is currently BDT
2,000,000. This minimum balance is subject to change from time to time at the
Bank’s discretion.

 FAMILY PREMIUM BANKING:

Up to 4 family members may combine their deposits or cumulative credit exposure
(as above) to attain a specified minimum balance. For the purposes of this system of
eligibility, “family members” are defined as: father, mother, brother, sister, son,

27
daughter and spouse. The minimum FUM for Family Premium Banking is currently
BDT 3,000,000. This minimum balance is subject to change from time to time at the
Bank’s discretion.

 OTHER ELIGIBILITY CRITERIA:

Premium Banking may also be offered to very important or socially influential
persons in lieu of the minimum balance. Head of Retail Banking retains the authority
to approve applications for this service to any such persons, on a case-by-case basis.
This will help to safeguard and maintain relationships with key persons who may
directly or indirectly affect the bank’s reputation in the industry.

 FEE INCOME:
Each Premium Banking customer (including each separate customer under Family
Premium Banking) will be levied an annual Premium Banking service fee of BDT
5,900 (excluding VAT). This fee is subject to change at any time at the Bank’s
discretion and will be advised to customers accordingly.

 BASIC FEATURES:
• Dedicated Relationship Manager: He/she will be the customer’s single point
of contact for all banking requirements.
• Preferential Rates and Charges: Most regular Retail Banking fees are
waived; for a detailed list consult the relevant attachment.
• Free Auxiliary Services (SMS/Internet/Phone Banking): Exclusive
facilities may be added for to each, which will not be offered to all customers.
• Special Debit Cards and Chequebooks: These will help to identify the
customer at branches and by the Bank’s clearing unit when making transfer
cheque payments.
• Greater Cash Access Limits at ATM/POS: This facility is currently on hold
due to system inadequacies; ATM/POS cash access limits will be enhanced
upon software upgrade.
• Pre-approved VISA Gold Card: Please note that the customer may have to
fulfill extra credit eligibility criteria in certain cases.

28
 • Privileged Arrangements and Discounts: Tie-ups with various retail outlets
will be made to provide this facility to customers.

 SERVICE DETAILS:
• Home Delivery Service (non-cash items only):
 Chequebooks
 Debit/Credit Cards
 Debit/Credit PIN
 Accounts Statements
 Drafts & Pay Orders
 FD & DPS Certificates
 Traveler’s Cheques
 Any banking forms/letters and other non-cash services

• Honorary Premium Banking: Up to 2 family members may receive a special

“Honorary” Premium Banking card which identifies the person’s link to a
Premium Banking customer. The only facilities that may be availed with this
card are the privileged and discount arrangements at selected retailers.

 Medical Facilities:
 Treatment facilitation at affiliate hospitals
 Bangladesh Bank documentation and liaison
 Ticket booking and purchase
 Visa arrangements and embassy fee payments
 Room and board arrangement at affiliate hotels
 Foreign currency and TC purchase and encashment
 Medical Loan

 Student Facilities:
 Campus Account
 Student File processing and maintenance

29
  Immediate tuition fee and student lodging payment
 Bangladesh Bank documentation and liaison
 Ticket booking and purchase
 Visa arrangements and embassy fee payments
 Foreign currency and TC purchase and encashment
 Study Loan

 Travel Facilities:
 Ticket booking and purchase
 Visa arrangements and embassy fee payments
 Room and board arrangement at affiliate hotels
 Foreign currency and TC purchase and encashment
 Travel Loan

 NRB Facilities:
 Pick-up from and drop-off to the airport
 Custodianship of valuables at selected branches
 Hotel booking
 Rental car arrangement
 Foreign currency and TC purchase and encashment

The basic idea behind Premium Banking is in the provision of fast and easy service.
By providing regular banking items right to the customer’s residence or office, the
Home Delivery service reduces the customer’s reliance on the branch. This means
that the customer can save time and effort simply by instructing his or her dedicated
RM to make a delivery.

While it is very basic concept, home delivery of regular banking services is not being
provided in a structured manner by any other bank in the country. As such, this
facility will highlight BRAC Bank’s unique approach to personalized banking and
give Premium Banking an edge over similar services.

30
 DELIVERABLE ITEMS:
The delivery items are listed in Table 1.5 below:

31
 Table 1.5: Delivery items
 Chequebooks  Demand Drafts & Pay Orders
 Debit/Credit Cards  FD receipts & DPS certificates
 Debit/Credit PIN  Traveller’s Cheques
 Accounts Statements  Any banking forms, other non-cash services
 Bank Certificates

 DISPATCH POINTS:
The dispatch points of different delivery items are listed in the Table 1.6 below.
Table 1.6: Dispatch points
Customer will place a home
From Head
delivery request through RM.
Office From Branch
 Chequebooks  All other items
 Debit/Credit Cards
 Debit/Credit PIN
RM will
 BA Letters
instruct the
concerned Branch to
issue/obtain the requested
Separate Messengers
item(s). will make the card and PIN deliveries to ensure the customer’s
safety.

Branch will issue/obtain the

 MESSENGER
requested item(s), fill LOCATIONS:
out and
sign the Confirmation.
Messengers will be distributed among the following locations, reporting to the RM at
the concerned branch; Messengers based at the Head Office will report to Senior
Manager, Premium
Branch will handBanking:
over the
item(s) in a sealed envelope
along with the Confirmation
to the Messenger.
Table 1.7: Messenger Locations
 Head Office (x2)  Gulshan  Banani  Dhanmondi
 Moghbazar  Motijheel  Agrabad
Messenger will make the
delivery to the Customer,
 PROCESS:
obtain his/her signature, and
give him/her the “customer’s
copy”
RMs will of thethe
make Confirmation.
appropriate entry in the designated Home Delivery Request. This
form must be submitted to the concerned BM or CSM for action. Once the requested
tem hasMessenger
been issued or obtained, it will be sealed in a Premium Banking envelope and
will return the
handedConfirmation
over to the to the Branch
Messenger along with the Home Delivery Confirmation, along
for signature verification.
with any application form that needs to be signed by the customer in order to have
Signatur
obtained the item normally
e does (e.g. DD/PO form, Document Issue form, etc.).
not
Branch will RM will call the
match
notify RM of Customer to confirm
mismatch. item(s) receipt.
Signat
ure
match
es
32
RM will notify Branch
Branch will retain the of delivery
Confirmation. confirmation.
 Fig. 1.7: Process flow
Messengers are also under instruction to make the delivery to the customer directly.
RMs will inform the customer in advance to receive his or her package personally and
sign the Home Delivery Confirmation and any other appropriate forms. A process
flow is attached in Fig 1.7 for better understanding.

33
 SPECIAL CONDITIONS:
Under no circumstances will RMs or Messengers deliver or receive cash or any bearer
or cash cheques for safety reasons. Traveler’s Cheques up to USD 6,000 (or
equivalent) may be home delivered. In such cases, RMs will make the delivery
personally in an office vehicle to ensure security.

 SCHEDULE OF CHARGES:

Table 1.8: Schedule of Charges

ACCOUNT
Regular Premium Banking
RELATED
Account Maintenance BDT 600 (annual) –
Account Closing BDT 300 –
Chequebook Issue BDT 100 –

ATM/DEBIT CARD Regular Premium Banking

Service
- Classic Card BDT 200 (annual) –
- Campus Card BDT 425 (annual) –
 Co–Branded Card BDT 495 (annual) –
Replacement
- Classic Card BDT 200 –
- Campus Card BDT 425 –
 Co–Branded Card BDT 495 –

CASH TRANSACTIONS
Regular Premium Banking
(INTERCITY)
BDT 1 and above BDT 100 –
BDT 100,000 and above BDT 200 –
BDT 500,000 and above BDT 300 –
BDT 1,000,000 and above BDT 1,000 –
BDT 5,000,000 and above BDT 2,000 –

CASH TRANSACTIONS
Regular Premium Banking
(WITHIN CITY)
BDT 2,500,000 and above BDT 200 –
BDT 5,000,000 and above BDT 1,000 –

CERTIFICATE ISSUE Regular Premium Banking

Account Statement
 For current year BDT 100 –
 Per previous year BDT 200 –
Balance Certificate

34
 General (same/next day) BDT 150 / BDT 100 –
 To specific party (same/next
BDT 300 / BDT 200 –
day)
Solvency Certificate BDT 300 –

CHEQUE RELATED Regular Premium Banking

Stop Payment
 Account Payee cheque BDT 200 –
 Cash cheque BDT 500 –
Stop Payment Cancellation BDT 200 –
Return (due to insufficient
BDT 500 –
funds)
Outstation Cheque Collection BDT 200 –
Cheque Purchase
 LCY BDT 500 + postage BDT 500 + postage
2.00% (min. BDT 2.00% (min. BDT
 FCY
1,000) 1,000)

DD / PO / FTT Regular Premium Banking

LCY DD/PO
 Issue – up to BDT 100,000 BDT 100 –
 Issue – above BDT 100,000 BDT 200 BDT 100
 Cancellation BDT 300 –
FCY DD
 Issue BDT 1,000 BDT 500
 Cancellation BDT 1,000 –
FTT (SWIFT) Advice
 Issue BDT 1,000 BDT 500
 Cancellation BDT 1,000 –

FCY / TC Regular Premium Banking

FCY Issue 1.00% 0.50%
TC Issue 1.00% 0.50%
TC Encashment – BBL
 Accountholder 0.25% (min. BDT 500) –
 Non–Accountholder 0.50% (min. BDT 500) BDT 500
TC Encashment – other banks’
 Accountholder 0.50% (min. BDT 500) BDT 500
 Non–Accountholder 1.00% (min. BDT 500) BDT 500
Passport Endorsement
 Accountholder BDT 200 –
 Non–Accountholder BDT 500 –
Certificate of TC Encashment
 Accountholder BDT 200 –
 Non–Accountholder BDT 300 –
Endorsement from FCY Account BDT 200 –

35
 LOAN RELATED Regular Premium Banking
Documentation BDT 100 –
Quotation Change BDT 500 –
Security Change BDT 500 –
Security Documentation Copy BDT 200 –
1.00% on o/s (max. BDT 1.00% on o/s (max.
Loan Rescheduling
15,000) BDT 15,000)

LOCKER FACILITY Regular Premium Banking

BDT 1,250
Small Locker BDT 2,500 (annual)
(annual)
BDT 1,750
Medium Locker BDT 3,500 (annual)
(annual)
BDT 2,250
Large Locker BDT 4,500 (annual)
(annual)

MISCELLANEOUS Regular Premium Banking

Account to Account Fund Transfer BDT 200 –
BBL Statement Verification BDT 200 –
BDT 150 (per
Certificate of Inward Remittance –
remittance)
BDT 500 (per
Duplicate Instrument Issue –
instrument)
Processing Standing Instruction BDT 100 (per instance) –
Mail Forwarding
 To customer’s address abroad BDT 200 + postage –
 To specified organization BDT 1,000 + postage –

Premium
STUDENT SERVICE Regular
Banking
Document Verification BDT 2,000 BDT 1,000
File Maintenance BDT 3,500 (annual) –

- Premium Banking Membership Fee is BDT 5,900 (annual).

36
 Gulshan PB Lounge Dhanmondi PB
Lounge
HOPB SRM
SRM ARM
ARM
development ] RM
CSO
CSO

Motijheel Lounge Uttara PB Lounge Banani

RM RM
SRM RM
ARM
ARM RM ARM
posted
ARM
Motijheel ] Major
Chittagong Lounge
Moghbazar Lounge Sylhet
Functions
RM RM
ARM ARM ARM
General Credit and Clearing and Foreign
Banking Fig. 1.8: Organogram Premium
Advance Banking
Remittance Exchange

Major Functions of the Department:

Major functionsCash
Deposit of Retail Banking include general banking, loan and advance and
Remittance Billing Account
Account Transaction
clearing
Department
and remittance
Department
and foreign exchange.
Department The major
Department functions are given in the
Department

workflow below:

Swift for Foreign Trade ATM Services

Remittance Service Cash Management

Service

Asset Management Payments &

Clearing
Retail Banking
Treasury Service Corporate Banking Safe Deposit Locker
Trade Finance
Project Finance Service
Fig. 1.9: Major functions
Small Enterprise
Collection
Description ofService Employee
its business (Product and
Finance Benefits
Services)
Consumer Finance
Syndication

37
Retail Banking
Swift foroffers theTrade
Foreign following products and services to ATM
its valued customers as
Services
the business revolves around the demands and needs of the clients.

Remittance Service Cash Management

Service

Asset Management Payments &

Clearing
Retail Banking
Treasury Service Corporate Banking Safe Deposit Locker
Trade Finance
Project Finance Service
Small Enterprise
Collection Service Finance Employee Benefits
Consumer Finance
Syndication

Fig. 1.10: Products and Services

Functions of PB in BRAC Bank, Head Office, Gulshan

Branch:
As given in the organ gram, Gulshan Branch consists of 24 employees who directly or
indirectly serve their customers in various ways. The major functions of the bank have
been given before. Now they will be discussed thoroughly by highlighting all the
functions of BRAC Bank, Head Office, Gulshan branch.

 Job Description
Before proceeding to the functional activities of the overall Premium Banking, the
functions of the Senior Relationship Manager and Relationship Manager are given
below. This is because they are mainly involved in all the major functions.

Senior Relationship Manager (SRM):

- Overall supervision of the branch in its day today activities.
- Monitor and coordinate in loan processing.

38
 - Special concentration to recover bad advances by meeting the defaulters and
constantly communicate with bank lawyer for taking necessary legal action
against the defaulter client.
- Holding meeting with the staffs and motivate them to improve the overall
business performance.
- Co-ordinate with the Head Office to sanction different types of advances and
advance related work.
Relationship Manager (RM):
- Documentation and disbursement of necessary Circulars from the Head Office
to the branch staffs.
- Monitoring and follow-up with the employees within the branch.
- Help in remedial asset management
Associate Relationship Manager (ARM):
- Provide friendly and responsive customer service by using skills for excellent
customer service.
- Ensure home delivery service request are met.
- Ensure superior service quality and out serve commitments.
- Interview and answer all sorts of customer queries.
- Handling customer complaints in a positive manner and converting complaints
into service improvement opportunities.
- Pro-actively analysing and formulating patterns of customer’s changing needs
of financial services and recommending/suggesting ways to tackle those.
- Manage our Premium Banking Team.
- Create an environment where value center will operate effectively as a team
demonstrating the values of the Bank.
- Keep good relationship and support your RM for all matter in tour PB team.

 General Banking:
General banking is the heart of banking activities. Total banking procedure start with
this department. The detailed description of general banking is given below.

 Term Deposit:
 FDR: High interest fixed deposit.

39
  Money Multiplier: Double/Triple/Quadruple your deposit in a fixed
amount of time.
 IFFD: You do not need to wait for maturity date to get interest, take
instant interest on your deposit.
 FFD: Freedom Fixed Deposit, highest interest rate ever offered by
BRAC Bank Ltd.

 ACCEPTING DEPOSITS:
Accepting deposits is one of the most important functions of commercial banks. The
deposits are accepted by BRAC Bank may be classified in to
 Demand Deposits
 Time Deposits

Demand deposits:
Demand deposits are those, which are withdrawn able on demand by using check. The
demand deposits accounts are
1. Saving Account
2. Current Account

Time Deposits:
Time deposits are such deposits, which are not, withdrawn able on demand but con be
drawn after a stipulated time. Banks pay higher interest rate against such type of
deposit account. There are many time deposit accounts.

3. Fixed Deposit Receipt Account (FDR)

4. ABIRAM Account
5. Short Term Deposit (STD)
6. Deposit Premium Scheme (DPS)
7. Premium Term Deposit

 SAVINGS ACCOUNT:
Savings bank account is a demand deposit. It can be withdrawn able by using check.
It is a good means of accumulating the savings from the large section of the

40
population with lower income. Bank pays interest on saving account. Currently
BRAC Bank is ‘Paying interest of 5.50% per annum. The depositor can deposit sum
of amount whenever he wants, with minimum balance restriction. Benefits received
from saving account.
• Interest is paid on a daily balance method.
• Interest is given for each day for whatever balance is maintained in the
account that day.
• Interest paid at 6% per annum on days when the balance is under TK 20,000.
• There is no restriction on the number of withdrawals.
• No forfeiture rules or hidden cuts.
• There is no requirement for notices to be given before making a withdrawal.
• The account holders will receive some other benefits. Such as:
• He/she is eligible to apply for the personal loan packages and can also open
other additional accounts and fixed deposit with the bank.
• He/she will receive preferential treatment at the time of processing of their
loan applications.
• He/she will receive discounts on remittance commissions.

Opening of Savings Account:

Any person who is of sound mind including a minor can open a savings account. The
requirement to open an account is as follows:
1. Bank’s prescribed account Opening form to be signed by applicant in front of
BM/RM/CSM.
2. Two copy of recent passport size photograph attested by the introducer.
3. Specimen Signature Card to be signed by the applicant in front of
BM/RM/CSM.
4. Any of the following identification documents like current valid passport,
proof of address, ID card, commissioner certificate etc. In this case Certifier
should attest applicant’s photograph along with signature.

 CURRENT ACCOUNTS:
Current account is an account where the account holder-within the funds can make
numerous transactions without any restriction. No interest is paid on these deposits.

41
Current account is mainly suitable for business transaction. However, it can be opened
by any individuals aged 18 years and above.

Benefits received from Current Account:

• There is no restriction of the number of withdrawals.
• There is no restriction of the amount or size if a withdrawal.
• No forfeiture rules or hidden cuts.
• No requirements for notice to be given before making a withdrawal.

Opening of Current Account:

Current account is opened by Individual, Joint, Partnership Firm, Sole Proprietorship,
Club or Society, Public or Private Limited Companies for different purposes. There is
also some difference as to open an account by different concerns.

The procedure for individual and joint Account:

The following documents duly completed shall be obtained from the Consumer at the
time of opening of Current Deposit Account for Individual and Joint Account:

1. Bank’s prescribed account Opening form to e signed by applicant in front of

BM/RM/CSM.
2. Two copy of recent passport size photograph attested by the introducer.
3. Specimen Signature Card to be signed by the applicant in front of
BM/RM/CSM.
4. Any of the following Identification documents:

Table 1.9: Identification Documents

Name of Identification document Issuing Authority
Current valid passport Passport office
Valid driving License Bangladesh Road Transport Authority
Voter ID Card Election Commissioner
Armed forces ID cared Employer or Their Delegate
A Bangladesh employer ID card bearing Employer or their delegate
the Photograph and Signature of the

42
applicant

A certificate forms any local government Up chairman or Ward Commissioner.

organs such as Union council chairman,
ward commissioner etc. In this case
certifier should attest applicants
Photograph along with signature.
Trade License with photograph can be Local Government authority. Up
accepted for individual’s Chairman, Pourashava Chairman or Ward
commissioner.

1. FIXED DEPOSIT RECEIPT ACCOUNT (FDR):

Fixed deposits are time deposit or time liabilities. Banks pays higher rates of interest,
as the deposit is not withdrawn able or demanded. The Fixed Deposit account is
opened for a fixed period; it may be 1 month, 3 months, 6 months, 1 year, 2 years and
3 years. Different rates or interest are allowed for different period and also depend on
amount.

Opening of Fixed deposit Receipt (FDR) Account:

Before opening a Fixed Deposit receipt (FDR) Account a CONSUMER must have an
account with the bank. Then the CONSUMER has to fill up an application form that
contains the following:

 Amount in figures
 Beneficiary’s name and address
 Period & date of issue
 Rate of Interest
 Date of maturity
 Instructions if any

After the submission of the Bank’s prescribed account opening form dully filled up,
the following woks have to be done:
 Specimen Signature Card to be signed by the applicant in front of
BM/RM/CSM.

43
  Two Passport size photograph of the account holder.
 Depositing the amount in his account.
 Bank will issue FDR receipt.

Maturity Date and Withdrawals:

The following points are considered regarding maturity period and withdrawals or
Fixed Deposit Receipt (FDR) account:

 The Fixed Deposit Receipt will be matured after the specified period.
 If the FDR is withdrawn before maturity period, interest will be issued.
 Interest is calculated par annum basis. Interest rate is 7.75% to 8.50%.
 At the maturity period on the account holder should come himself and put his
specimen signature on the back of Fixed deposit

2. ABIRAM ACCOUNT:
BRCK Bank Abiram Account is a special type of Fixed Deposit Scheme, which offers
the flexibility and comfort of having a guaranteed monthly return on your investment.
An amount of cash is deposited n Bank for a fixed period specified in advanced in this
deposits. Banks pays higher rates of interest, as the deposit is not withdrawn able on
demand. The Abiram account is opened for a fixed period. The period may be one
year, two year, and maximum of three years. Different rates of interest are allowed for
different period and it also depends on amount.

Opening of Abiram account:

Before opening an Abiram Account a CONSUMER must have an account with the
bank. Then the CONSUMER has to fill up an application form that contains the
following:

 The Abiram Account will be matured after the specified period.

 If the Abiram account is withdrawn before the maturity period, interest will be
issued at the prevailing Sevings Account rate.
 Interest is calculated on a monthly basis. Interest rate is 8% to 7.5% depending
on amount and time.

44
At the maturity period the account holder should come himself and put his specimen
signature of the back of Abiram account receipt. Then the banker verifies the
signature and retains the Abiram Account receipt and will give him the amount in
cash or as required. Abiram account offers loan facilities up to 95% of deposit.

3. SHORT TERM DEPOSIT (STD) ACCOUNT:

In Short Term Deposit account, the interest is calculated on daily basis. The interest
offered for STD is less than that of savings account. Various big companies,
organizations, Government Departments etc keep money in STD account. Frequent
withdrawal is discouraged and requires no prior notice. The rate of interest for STD
account is currently 5% per annum and the investment should be minimum one Lac
and above.

In BRAC Bank, usually customer gives an instruction to the bank that their current
account will be transferred to the STD account. So Bank follows this instruction by
giving following entries,

Consumer’s Current Account Debit

Consumer’s STD Account Credit

4. DEPOSIT PREMIUM SCHEME (DPS):

BRAC Bank introduces the Deposit Premium scheme (DPS), a truly special savings
plan that allows saving on a monthly basis and getting a handsome amount at
maturity. An amount is deposited in a bank for a fixed period of time. Bank pays
higher interest rate and there are a range of options for both instalment size and
maturity. An amount is deposited in a bank for a fixed period of time. Bank pays
higher interest rate and there are a range of options for both instalment size and
maturity. Maturity period may be 4/7/11 or 14 years.

In BRAC Bank, usually Consumers saving account will be debited whenever its
deposited amount crosses a certain limit and this amount will be transferred to the
DPS account. So bank gives following entry:

Consumer’s Savings Account Debit

45
 Consumer’s DPS Account Credit

Before opening a Deposit Premium Schemes (DPS) Account a Consumer must have”
a Savings account with bank. Than the CONSUMER has to fill up an application
form that contains the following:
 Amount in figures
 Beneficiary’s name and address
 Period
 Rate of Interest
 Date of Issue
 Date of maturity
 Instructions if any.

Maturity Date and Withdrawal of Deposit Premium Scheme (DPS):

The following points are considered regarding maturity period and withdrawal of
Deposit Premium Scheme (DPS) Account:
 The DPS Account will be matured after the specified period.
 Deposit Premium Scheme can be en-cash before the maturity period, and
interest will be issued.
 Interest rate is 8.5% to 9.75% depending on amount and time.
 At the maturity period the account holder should come himself and put his
specimen signature of the back of DPS account receipt. Then the banker
verifies the signature and will give him the amount in cash or as required.
Deposit Premium Scheme (DPS) offers loan facilities up to 90% of deposit.

46
5. PREMIUM TERM DEPOSIT:
BRAC Bank Premium Term Deposit is a 5 year term Fixed Deposit. Unlike
conventional Deposits, Premium Term Deposit provides a guaranteed return. Bank
pays higher interest rate.

Opening of Premium Term Deposit:

Before opening a Premium Term Deposit a CONSUMER has to fill up an application
form that contains the following:
 Amount in figures
 Beneficiary’s name and address
 Period
 Rate of Interest
 Date of Issue
 Date of Maturity.

Maturity Date and Withdrawal of Premium Term Deposit:

The following points are considered regarding maturity period and withdrawal of
Premium Term Deposit:
 The Premium Term Deposit will be matured after 5 years Fixed Term.
 Interest rate is 17% per annum.

Interest Rates of Deposit Account:

Table 1.10: Current interest rates

Types of Account Interest Rate
Savings Bank Account 5.50%
Fixed Deposit Receipt (EQID)
1 Moths up to 3 months 7.75%
3 Moths up to 6 months
6 Moths up to 1 months To
1 year up to 2 years
2 years up to 3 years 8.50%
Short Term Deposit (STD) 5%
ACCOUNT OPENING PROCESS BY CSD:

47
Consumer requests opening of account and after completing the form, Consumer
Service Officer scrutinize account opening form and establish account. Then he enters
the account details in numerical control register. Consumer Service Officer Submits
forms with all documents to Operation Manager for Review. Operation Manager
rechecks all documents, signs off and submits to Branch Manager for approval. If in
order, Branch Manager approves the file and return to Operation manager. Manager
Operation sends the file to Consumers Service Officer. CSO then do the photocopy of
the form and segregates Specimen Signature Card, Keeps one in Signature cabinet
sends another with photocopy of his account opening form to Consumer Service
Delivery (CSD). CSO enters all account opening form and specimen signature cards
in a log sheet in triplicate daily basis and hands over to Operation Manger Keeping
the log and if satisfied send the account opening from to Consumer Service Delivery
to inputs data in Millennium Banking System (MBS) Client Database and Scanning
of the Signature Cards. CSD receives the account opening form and signature cards
and sign of in the duplicate copy of the log sheet and sends back to branch.
Consumers Service Officer files the received copy.

Observation:
However, it has been observed that all the procedure regarding opening an account, a
great deal or personal judgment is required by the banker to verify the Consumer.
Extra care should be taken in case of Public and Private limited companies regarding
the documents. The banker customer relationship is the ultimate key to success, so the
customer should be chosen appropriately

SHANCHAY PATRA:
BRAC Bank sells two types of Shanchay Patra on behalf of the Government. The
Sales Statement of Shanchay Patra must be sent to Bangladesh bank Within 72 hours
of sale, otherwise the bank has to pay penalty to Bangladesh bank. BRAC Bank geat
commission of the total sales.

48
 Table 1.11: Shanchay patra interest rates
Type of Shanchay Patra Interest Rates
3 years Shanchay Patra 10%
5 years Shanchay Patra 10.5%

Shanchay Patra Issuance and Encashment by CSD:

Branch Consumer Service Officer receives the application form for issuance of
Shanchay Patra and a letter of Debit authority along with declaration form. And for
Encashment of Shanchay Patra Consumer Service Officer receive Coupons along with
encasement request form and a photocopy of Registration slip. In both the cases
receive stamp will be used, receiver will put initials, and client’s signature must be
verified by the receiver. At the end the Shanchay Patra Issuance of or encashment
details must be logged in the Form T and forward to Consumer Service Delivery
(CSD). After receiving the instruction and instrument, CSD will then transaction. For
issuance, Shanchay Patra will be issued respective branch with in 36 working hours.
And for Respective account will be credited with in 24 working hours.

 Deposit Account Department:

In BRAC bank Gulshan Branch, Desk –1 is involved in account opening and closing
tasks. One staff officer is given this responsibility. This section also needs the help of
computer officer in order to issue cheques and verify account holder signature. The
job description of this department is given below:
- Opening different types of account such as current deposit, saving bank
deposit, fixed deposit and any other deposit instructed by the head office.
- Handling operation of different types of accounts.
- Responsible for issuing cheque books.
- Transferring and closing different types of accounts.
- Opening and operating PSS account.
- Giving account statement to the clients.
- Giving Tele Banking services.
- Making vouchers regarding above transactions.
- Serve its customers the best by helping with their queries and problems.
 Cash Transaction Department:

49
The activities or responsibilities of the cash transaction department can be shown with
the help of a workflow.

Transaction

Cash Clearing Transfer

Voucher

Recording in the register

Posting in the ledger

Supplementary sheet preparation

Balancing

Tally with
Summery Preparation

Cash-cum day book

General ledger posting

Affairs front page Abstract

Subsidiary accounts posting

Fig 1.11: Accounting workflow in branch
Cash transaction department is Affairs
also involved in colleting bill from the customers
back page
regarding mobile, electricity and gas bill.

 Clearing and Remittance Department:

50
The main objective of clearing and remittance is to provide an extra facility to the
customers than cash receipt and cash payment. This department can be divided into
two parts as per the type of responsibilities.
• Clearing and Transfer Delivery:

1. Inward Clearing:
- The instruments drawn on BRAC Bank are received from other Banks in
the Clearing House by the representing branch of the Bank.
- The amount and number of instruments received are entered in the House
Book from the main schedules of respective banks.
- The amount of instruments delivered, received and difference is written
in a slip provided in the Clearing House and the Slip is returned.
- The instruments with schedule are arranged branch wise.
- A copy of each schedule is detached.
- The amount of each schedule received is entered in the House pages of
the respective branches.
- The respective House pages are totaled and the total of each is noted on
a Slip and a grand total is taken out.
- The grand total is agreed with the total of the House Book.
- The instruments are sent to the respective branches with Slip showing
total amount and number of instruments.
- The instruments are sent to the branches concerned for clearance along
with the IBDA with the total amount of the instruments.
- The House pages along with the duplicate schedules are filed.
- Particulars of the instruments are compared with the schedule and the
Slip and the schedules are detached (Receipt of instruments in the
Branches).
- The instruments are sent to the respective departments and the schedules
are filed.

2. Outward Clearing:
- The instruments drawn on other banks are received duly entered in the
Pay-in-Slip or voucher.

51
- The instruments are checked and compared with the particulars noted in
the Pay-in-Slip and its counter folio.
- In case an Order instrument is being deposited in second payee's account,
guarantee is obtained from the second payee on the reverse of the
instruments.
- In case the payee's name on the specially crossed instrument differs
slightly from that of the depositor, the instrument may be accepted but
only from the customer's well known to the Bank and after obtaining
an Indemnity that is attached to the Pay-in-Slip.
- Proper stamp(s) is/ are affixed on the instruments and on Pay-in-Slip and
the counter folio
- The instrument is suitably endorsed/ discharged.
- The instrument along with the Pay-in-Slip is sent to the In-charge for
checking and signature.
- The instrument and Pay-in-Slip are detached from the counter folio
which is handed over to the customer.
- The particulars of the instrument and the voucher are entered in the
Outgoing Clearing Register.
- Serial number is given on each voucher.
- The Register is balanced; the vouchers are separated from the
instruments and released after lodgement to the respective departments
against acknowledgement in the Register.
- The instruments are arranged bank-branch-wise.
- The Sub-Main-Schedules are prepared in triplicate, two copies of which
are attached with the relative instruments.
- The grand total of the schedules is taken and agreed with that of the
Register.
- The House Page is prepared in duplicate.
- The BRAC General A/C Clearing House representing branch is debited
with the amount of the instruments and IBDA is sent to that branch and
the party's account is credited.
- The instruments with the schedules are sent to the branch representing to
the Clearing House.

52
 - The instrument is received in the manner similar to that explained in
foregoing paras (Receipt of instruments by the Branch representing to
the Clearing House).
- The instruments with schedules are received from the branches
(Lodgement by the branch representing to Clearing House).
- The instruments with schedules are rearranged bank-branch-wise.
- The branches are entered in the Outward Clearing Register.
- The Main Schedule of each Bank is prepared and total amount of the
respective sub-main-schedules are entered thereon.
- The House Page is prepared in duplicate, and total is balanced with that
of the Register.
- The instruments with schedules received from the branches are sent to
the Clearing House (Presentation in the Clearing House).
- The instruments are delivered to the respective Banks.

3. Inward Transfer Delivery:

For payment of Bills presented to a particular branch of the Bank through another
branch of the Bank, the procedures are the same as those applicable to Inward
Clearing. The only exception is that there are no clearing house formalities. The
concerned branches of the Bank directly deal with Inter-branch clearing.

4. Outward Transfer Delivery:

Outward transfer delivery is used for collecting Bills by a particular branch of the
Bank, drawn on another branch of the Bank. The procedures are the same as those
applicable to Outward Clearing.The only exception is that there are no clearing house
formalities. The concerned branches of the Bank directly deal with Inter-branch
clearing.

 Local Remittance:
Sending money from one place to another place for the customer is another important
service of banks. And this service is an important part of country's payment system.
For this service, people, especially businessmen can transfer funds from one place to

53
another place very quickly. There are five kinds of techniques for remitting money
from one place to another place. These are:
1. Demand Draft
2. Pay Order
3. Telegraphic Transfer
4. Telephone Transfer
5. Mail Transfer - Time consuming and not frequently used
Telegraphic and Telephone transfer are almost the same, both are them are known as
TT in short. BRAC bank helps people transfer their money from one district to
another in the quickest possible time at the lowest service charge.

 Loan and Advances:

In the credit and advance department of BRAC Bank, Gulshan Branch, there are two
officers who monitor the activities. The functions of this department are described
below:
- Processing of loan application
- Placing the loan proposal to the Branch Manager/ Head office for disposal.
- Processing of application requesting for confirmation of lien and verification of
signature in case of advances against BSB/ICB Unit certificates/Wage Earner
Devt. Bond.
- Preparing loan limit sanction letter and obtain confirmation from the borrowers.
- Preparing limit sanction advice for computer programming and arrange
completion of documentation formalities.
- Processing of application of House Building Loan for Head Office sanction.
- Inspection of land site for HBL proposal through personal investigation in
connection with assessment of value.
- Obtaining confidential report from other banks regarding new intending
borrowers.
- Obtaining credit information Bureau Report in case of advance for more than
TK. 50lacs.
- Project site inspection in case of advance against work order.
- Inspection land for assessment of valuation of property to be proposed against
loan application.

54
- Preparing application for making lien against Work Order with the branch and
obtain confirmation of issuance of work order and letter of confirmation
through personal visit to the office of work order awarding authority.
- Inspection of stock against cash credit (Hypo.) account.
- Having received approval from the branch/Head Office for sanction of
SOD/cash credit (Hypo)/House Building Loan limit, preparation of application
to legal advisor for vetting of property documents, and preparation of draft for
creation of Power of Attorney/Equitable Mortgage/Loan Mortgage.
- After getting draft from legal advisor about vetting of property documents,
complete the documentation including registered mortgage/Power of Attorney
through sub-register office.
- Processing of application to Head Office for sanction of Staff Provident Fund
loan account.
- Negotiation of Export document.
- Purchasing accepted inland bills with approval of the Branch Manager.
- Preparing proposal for sanction of IBP limit to Head Office beyond the branch
discretionary power and thereafter completion of documentation and legal
formalities thereof if sanctioned.
- Review of limit before expiry including issuance of letter of different borrower
for renewal/adjustment of limit.
- Taking appropriate steps for renewal of insurance policy in case of cash credit
(Hypothecation) advances.
- Sending the balance confirmation certificate to the borrowers after every quarter
end.
- Submission of statement of SOD/CC/TOD/HBL/Loan to head office on monthly
basis and other statements in quarterly and half-yearly basis.
- Checking balances of advance ledger.
- Preparing draft according to legal advisor’s prescribed format for serving legal
notice to the defaulting borrowers.
- Scripting draft plaint and processing the case to BLA for filing of Money
Suit/Title Suit after receiving approval for the same from head office.
- Appearing before the Artha Rin Adalat on the date of hearing of Money
Suit/Title Suit.

55
It also offers some loan like home loan, travel loan, auto loan and study loan which I
will describe briefly-

 Home Loan:
Home Loan is loan facility for the middle class to upper class people to purchase /
renovate their Apartments / dwelling houses for their residential purpose through
mortgage or other securitization policy as per law. There are 2 (Two) types of Home
Loan. The first one is “Home Loan (HL)” for purchasing Apartment / House. The
other one is “Home Credit (HC)” for renovation of Apartment / House. Loan are
given to salaried (including ECO); Self-employed professional (Doctor, Engineer,
Architect etc); Businessman & Landlord. The loan is give on the basis of 50% of
proved monthly income. The limit of the loan is minimum BDT 500K to maximum
7500K (may vary subject to loan type) and the tenor would be maximum 20 years
(may vary subject to customer segment and loan type). Equal Monthly Instalment
(EMI) realized through Standing Instruction (SI). There is an option for early
settlement of outstanding loan but settlement charge will be applicable as per
following manner:
Within 1st year = 5% of outstanding amount + VAT
Within 2nd year = 4% of outstanding amount + VAT
Within 3rd year = 3% of outstanding amount + VAT
Within 4th year = 2% of outstanding amount + VAT
Within 5th year or more than 5th year = 1% of outstanding amount + VAT
The applicable interest rate is 14% p.a. (variable rate). The processing fee is 1.5% of
loan amount and includes VAT payable before disbursement.

 Travel Loan:
Travel Loan is a loan facility offered by the Retail Banking Division to facilitate
travel related requirement for going abroad (for any purpose) of the Bangladeshi
people. This loan is offered to the persons who have stable monthly income. It is a
clean or unsecured loan in the sense that there is no cash security taken against the
loan. A person can borrow up to Tk. 3 Lac. The minimum amount is Tk. 50,000
which will be borrowed. The interest rate is 17.50% p.a., which is 1% lesser than
Personal Loan. The Loan Processing Fees/Charges for the facility is 2% of loan

56
amount, minimum Tk.1000 and also includes VAT. The tenor of the loan is 12 to 36
months. If I get TK 100,000 of Travel Loan, then the Equal Monthly Instalment
(EMI) at 17.5% interest rate p.a. will be-
Loan Amount EMI for EMI for EMI for
12 Months 24 Months 36 Months
100,000 9,144.22 4,968.28 3,590.21

 Auto Loan:
Auto loan is the loan facility for the middle class or upper class people to purchase a
car for their necessary purpose. The loan will be given to 2 types of person like
service holder and business man. The employee will be get benefited from this loan.
The interest rate is 18% and the processing fees 1%. The proposed limit will be
offered after adjusting existing Auto Loan facility-
FUM LIMIT
Below BDT 5 Million 1500K
Above BDT 5 Million 2000K

 Study Loan:
Study Loan is a loan facility offered by the Retail Banking Division to facilitate the
purpose of Higher Education of the Bangladeshi Students. The processing fee 0.50%
of loan amount and includes Vat. The limit of the Secured Study Loan is 100% of the
face value of the acceptable Securities. The tenor of Secured Study Loan is 12 to 60
Months. The interest rate of Secured Study Loan is 14.50% p.a.
Acceptable securities for Secured Study Loan are;
 Term Deposits at BRAC Bank or other banks
 Wage Earner Development Bonds
 ICB Unit Certificates

 Foreign Exchange Department:

Foreign Exchange risk is defined as the potential change in profit/loss due to change
in market prices. Today’s financial institutions engage in activities starting from
imports, exports and remittances involving basic foreign exchange and money market
to complex structured products. Within the Bank, Treasury department is vested with
the responsibility to measure and minimize with bank’s assets and liabilities.

57
- Import Department:
Import is the flow of goods and services purchased by economic agents located in one
country from economic agents located in another. Hence, import of merchandise
essentially involves two things: bringing of goods physically into the country and
remittance of foreign exchange towards the cost of the merchandise and services
connected with its dispatch to the importer.
- Export Department:
The goods and services sold by Bangladesh to foreign households, businessmen and
Government are called export. The export trade of the country is regulated by the
Imports and Exports (control) Act, 1950. There are a number of formalities, which an
exporter has to fulfil before and after shipment of goods. The exports from
Bangladesh are subject to export trade control exercised by the Ministry Of
Commerce through Chief Controller of Imports and Exports (CCI & E).
- Foreign Remittance Department:
BRAC Bank, Gulshan Branch is an authorized dealer of foreign exchange. The
department’s dealing in foreign exchange involves buying and selling of foreign exchange
converting inward remittances received from abroad and outward remittances sent abroad.

Foreign Exchange

Export Import Foreign

LC Cash Back to Back

Inwar Outwa
d rd

58
 Fig. 1.12: Organizing Structure of Foreign Exchange Department
 ATM CARD PRODUCTION DEPARTMENT:
This is new department that is introduced in the service portfolio of BRAC Bank
Limited. It started its journey form 15th April 2005. Through this service the clients
are enjoying modern technology in withdrawing their money. It represents the
development of banking sector in our country. BRAC Bank is offering this service to
most of its client as early as possible. A well-trained work force is giving their level
best effort to serve efficiently. There are different steps to complete the process of
card production. Among the local bank BRAC Bank is the only one bank that is
producing ATM card in their premises. Secura Pvt. Limited (Singapore) is providing
blank ATM card to BRAC Bank. There is a card embossing machine that can produce
around 1200 card per day. ATM card division is producing around 700 cards in
different segment each day.

Function of ATM Card Division:

 Production of ATM Cards
 Maintaining the stock of ATM Cards
 Keeping record of produced cards
 Reproducing Lost/ Stolen ATM Cards
 Distribution of ATM Cards
 Maintaining All database related to card production & distribution
 Charging against issued cards
 Resending returned cards
 Maintaining the vault registrar
 Coordination with IT in issuing Pin
 Customer service through handling inquiry of the clients
 Updating the request of address chance into access system
 Maintaining reject till internal audit
 Sorting out discrepant request branch wise and send back.

A Brief Overview of the Banking Industry:

According to the Bangladesh Bank Annual Report 2006/07 there are total 48 banks in
Bangladesh with 6412 branches all over the country in order to serve the people. The

59
competition in this industry is increasing day by day. There are four different
categories of banks. They are: -
- Nationalized Commercial Banks
- Denationalized Financial Institutions
- Private Commercial Banks
- Foreign Commercial Banks
Among the above categories BRAC Bank Ltd. falls under private commercial bank.
PCB sector has the highest number of competitors that is 30 in numbers and it is
growing at a fast pace. The competition within this sector is increasing to grab the
majority customer base and BRAC Bank is struggling to maintain a suitable position
in the industry and also to improve their services.

• Major competitors:
Some of the major competitors that are eating up the pie of the banking industry
include Bank Asia, Prime Bank, Dhaka Bank, Eastern Bank, EXIM Bank, JAMUNA
Bank, Mercantile Bank, One Bank, Premiere Bank, Trust Bank etc.
Some of the banks are using aggressive strategy and spreading their services in the
remote areas at a very short span of time. BRAC Bank Ltd. is one of the very lucky
bankers who are enjoying the special position for International image in the industry
as an asset.

Financial Overview of BRAC Bank Ltd.:

From the annual report I calculate the liquidity and profitability ratios of 2005-2007
of BRAC Bank Ltd. which will be shown in the following page. I also interpret the
ratios as a graphical manner and briefly describe the graphs. In the graph analysis part
I show that in which sector BBL should work for their future growth.

60
Ratio Analysis:
Table 1.12: Ratio Analysis
Liquidity and 2005 2006 2007
Profitability
Ratios
Current Ratio 4127311766/14882402057 8662586106/24334895856 11172919504/39608407773
=27.73% =35.60% =28.21%

Return on Asset 192680101/16876009139 334261127/30011815073 618335637/46382595418

=1.14% =1.11% =1.33%
Return on 192680101/782931910 334261127/2117193037 618335637/3072028674
Equity =24.61% =15.79% =20.13%
Net Interest 666515907/16876009139 421576241/30011815073 539221202/46382595418
Margin =3.95% =1.40% =1.16%

Net Non-interest 430283242/16876009139 745864435/30011815073 1234456708/46382595418

Margin =2.55% =2.49% =2.66%
Net Bank 580318012/16876009139 1050407027/30011815073 1945492526/46382595418
Operating =3.44% =3.50% =4.19%
Margin
Earning Per 580318012/15057550 1050407027/35740286 1945492526/35404777
Share =38.54 =29.39 =54.95
Dividend Payout 23/38.54 = 59.68% 24/29.39 = 81.66% 25/54.95 = 45.50%
Ratio
Tax 192680101/340360101 334261127/705361127 618335637/1264335637
Management =56.61% =47.39% =48.91%
Efficiency
Expense Control 340360101/1173317659 705361127/2077425522 1264335637/3546246530
Efficiency =29.01% =33.95% =35.65%
Asset 1173317659/16876009139 2077425522/30011815073 3546246530/46382595418
Management =6.95% =6.92% =7.65%
Efficiency
Funds 16876009139/782931910 30011815073/2117193037 46382595418/3072028674
Management =21.55% =14.18% =16%
Efficiency

The above ratios have been calculated on the basis of Financial Statements of BRAC
Bank Limited for the year 2005, 2006 and, 2007.

61
Interpretation of Financial Statements:
Current Ratio:
Current Ratio indicates the extent to which current liabilities are covered by those
assets expected to be converted to cash in the near future.

Current Ratio

40 35.6
27.73 28.21
30
Values (%)

20

10

0
2005 2006 2007
Year

Fig. 1.13: BBL’s Current Ratio of 2005-2007

Here, we see that over the past three years current ratio of BBL is decreasing then
increasing and after that it also decreasing which signifies that, current assets of BBL
is getting weaker compare to their current liabilities. With the current ratio 27.73%,
35.60% and, 28.21% for the year of 2005, 2006 and, 2007 – BBL could liquidate
current asset of book value and still pay off current creditors in full.

Return on Asset:
Return on assets determines the amount of net income produce on a firm’s assets by
relating net income to total assets.

62
 ROA

1.35
1.3
1.25
Values (%) 1.2
ROA
1.15
1.1
1.05
1
2005 2006 2007
Year

Fig. 1.14: BBL’s Return on Asset of 2005-2007

It is primarily an indicator of managerial efficiency; it indicates how capably the

management of the bank has been converting the institution’s asset in to net earning.
ROA in 2005 was 1.14%. In 2006 it decreased to 1.11% and then again in 2007
increased to 1.33%. These high return result from the banks’ high basic earning
power plus low expenses, both of which cause BBL’s net income to be relatively
high. It is clearly shown that BBL cans efficiently converting its assets in to earning.

Return on Equity:
ROE means the rate of return flowing to the banks’ shareholders. It approximates the
net benefit that the share holders have received from investing their capital in the
bank.

ROE

30

25
20
Values (%)

15
10

5
0
2005 2006 2007
Year

Fig. 1.15: BBL’s Return on Equity of 2005-2007

63
In 2005 we have seen that ROE was 24.61%. In 2006 it decreased to 15.79% but in
2007 it again increased to 20.13%. Though the ROE in following year is not steady,
the percentages are quite potential. BBL can attract the shareholders as the potential
ROE indicates a large multiplier which shows high returns for its stakeholders and, a
good equity that absorb losses on the bank assets.

Net Interest Margin:

It measures how large a spread between interest revenue and interest cost
management has been avail to achieve by close control over the bank’s earning assets
and the pursuit of the cheapest source of funding.

Net Interest Margin

3
Value
s (%)

0
Net Interest Margin
2005
2006
Ye ar 2007

Fig. 1.16: BBL’s Net Interest Margin of 2005-2007

The net interest margin of BBL for the following three years is 3.95%, 1.40% and
1.16%. Though the interest income from loans and security investments of BBL is
low, at the same time the interest expense on deposits and on other deposits is also
low, therefore the net interest margin is high.

Net Non-interest Margin:

The non-interest margin in contrast, measures the amount of non-interest revenues
stemming from deposit service charges and other service fees the bank has been able
to collect relative to the amount of non-interest costs incurred. In BBL the non-
interest margin of 2005, 2006 and, 2007 is 2.55%, 2.49%, and, 2.66% respectively.

64
 Net non-Intarest Margin

2.7

2.65

2.6
Values (%)

2.55 Net non-

Intarest
2.5
Margin
2.45

2.4
2005 2006 2007
Year

Fig. 1.17: BBL’s Net Non-Interest Margin of 2005-2007

Net Bank Operating Margin:

Net Bank Operating Margin

4
Values (%)

0
2005 2006 2007
Year

Fig. 1.18: BBL’s Net Bank Operating Margin of 2005-2007

From the graph we have seen that in 2005 net bank operating margin was 3.44%. In
2006 it rises to 3.50% and in 2007 it again rises to 4.19%. Therefore it is slightly
varying from year to year.

65
Earnings per Share:

Earning Per Share

60

50

40
Values

30
Earning
20 Per
Share
10

0
2005 2006 2007
Year

Fig. 1.19: BBL’s Earning Per Share of 2005-2007

BBL’s stockholders are most concerned about their earnings per share of stock held.
Though it decreased in 2006 but again start increasing in 2007. Therefore
management needs to begin work immediately on expanding the bank’s revenues
from assets and services sold, while moving toward a less-expensive mix of deposits
and non-deposit sources of funds.

Dividend Payout Ratio:

Dividend Payout ratio of 2005, 2006 and, 2007 is 59.68%, 81.66%, and 45.50%
respectively. It is seen their ratio is decreasing. As BBL is expanding their branches
and opened many ATM booths, they had to invest a lot. Therefore whatever their
profit comes, they invest in it to get more profit.

Tax Management Efficiency:

This is basically the measurement of tax management policy that is how well the
company can manage their tax burden.

66
 Tax Management Efficiency

58
56
54
52
Values (%) 50
Tax Management
48 Efficiency
46
44
42
2005 2006 2007
Year

Fig. 1.20: BBL’s Tax Management Efficiency of 2005-2007

Tax management efficiency of 2005, 2006, and 2007 is 56.61%, 47.39% and, 48.91%
respectively. Though their tax management efficiency in 2005 is high but it fell in
2006 which is not good for BBL. Therefore BBL needs to work on their tax
management policy.

Expense Control Efficiency:

In 2005, expense control efficiency was 29.01%. In 2006, it increases to 33.95% and
again in 2007 it increases to 35.65% which is a good sign for the BBL.

Expense Control Efficiency

37
35
33
Values (%)

31 Expense
29 Control
Efficiency
27
25
2005 2006 2007
Year

Fig. 1.21: BBL’s Expense Control Efficiency of 2005-2007

67
Asset Management Efficiency:

Asset Management Efficiency

7.8
7.6
7.4
Values (%)

7.2
Asset
7 7.65
Management
6.8 Efficiency
6.95 6.92
6.6
6.4
2005 2006 2007
Years

Fig. 1.22: BBL’s Asset Management Efficiency of 2005-2007

In 2005 the asset management efficiency increased to 6.95% but in 2006 it decreased
to 6.92% and in 2007 it again increased to 7.65% which indicates the huge increment
in the asset management efficiency of the company. It also means that the BBL’s
condition is good.

Funds Management Efficiency:

Funds Management Efficiency

25
21.55
20 Funds
16
14.18 Management
15 Efficiency
Values (%)
10

0
2005 2006 2007
Year

Fig. 1.23: BBL’s Funds Management Efficiency

From the above graph we see that in 2005 the funds management efficiency was
21.55%. In 2006 it decreased 14.18% which indicates the huge reduction. But in 2007
it again slightly increased to 16%. So the BBL should work on it.

68
SWOT Analysis of BRAC Bank Limited:
SWOT analysis means analysing the strengths, weakness, opportunities and threats of
the Organization to know the present condition. This is very common analysis to
determine the company’s capabilities of doing effective business. This help to know
the possible advantages and disadvantages of the firm that it has compare to compare
to others. The SWOT analyses are briefly given in the below:

Strength Opportunity
Weakness Threats

S- STRENGTHS
W-WEAKNESS
O-OPPORTUNITIES
T-THREATS
Here is the SWOT analysis of BRAC Bank:

 S- STRENGTHS:
As a private commercial bank BRAC BANK enjoys the following strengths
 Wide range of service line
 Online Banking Services
 Excellent working environment
 The bank is providing modern services like ATM, on line banking, SWIT
facilities, SMS Banking.
 The banking service is easily accessible and feasible
 Efficient and skilled workforce
 Higher profitability
 The bank launched several deposit schemes, which have been appreciated by
the Consumers resulting growth of deposit of the bank.
 Huge business area
 The bank has earned customer loyalty as well as organizational loyalty. The
bank has also control in maintain quality services to its clients.

69
 BRAC Bank Ltd. has a long-term reputation in the banking industry as it is
one of the promising players in the industry. So, their enduring good will in
the field works as a vital strength.
 Its one of the important strength is its big portion of share as it provides
security to the customers. They feel reliable to deal with this bank and usually
do not switch.
 BRAC Bank Ltd has a good number of corporate customers. They have clients
from all small, medium and big enterprises. This is because of the reliability
they provide to their customers.
 The bank also provides all their services at a very low rate. As a result people
of all status can easily become a client of the bank.
 They have qualified and experienced human resources who are highly
committed to their customers.
 It has sophisticated automated banking system in most of its branches which
foster the overall banking activity.
 They have excellent management system to integrate all the branches with the
head office.

 W-WEAKNESS:
 Lack of proper motivation, training and job rotation
 Limited workforce compare to competitors
 Lack of clearly define marketing objective
 Limited number of branches
 Lack of promotional objectives and strategies
 Lack of implementing more equipped IT technology
 Fund is getting costlier and getting access to the fund is also becoming more
difficult
 Lack of experienced employees in junior level management.
 Lack of motivation among the workers.
 Heavy dependency on Head Office in decision making sometimes slower the
work process.

70
 Lack of extrinsic and intrinsic reward & incentives for the employees from
management sometimes result to job burn out.
 High dependency on ‘word of mouth’ strategy.

 O-OPPORTUNITIES:
 To increasing skilled manpower bank can earn more profit.
 The bank will go for immediate automation of all branches through computer
network.
 In developing country like Bangladesh banking service would be the only
sources of financing.
 Despite stiff competition among banks operating in Bangladesh, both foreign
and local, BRAC BANK has achieved satisfactory progress in all areas of its
operation.
 They can diversify their portfolio by introducing new sector like introducing
ATM machines.
 The banking sector of Bangladesh is growing very fast.
 The bank can also start micro-credit for individuals and small business.
 Other unexplored district where branches can be set up.
 Increasing number of SME has enhanced the opportunity for bigger corporate
client base.
 High awareness among all level of people to deposit money in the banks.

 T-THREATS:
 The event of September -11 last eras in the USA and the events that followed
have aggravated the global economic situation.
 Political uncertainties in the countries affect the business.
 Opening of the branches of newly opened private banks and foreign banks the
competition will be intensified.
 More policies of Bangladesh bank and lowering the bank rate by Bangladesh
bank, BRAC BANK reduces the lending rate.

71
  The size of the market and the present state of economic activity did not
provide adequate scope for business for a large number of banks with outdated
operating system.
 Frequent changes in rules and regulations from Bangladesh Bank.
 High customer awareness of pricing and service strategy due to aggressive
marketing by its competitors.
 Low switching cost of the customers.
Foreign banks are all prepared to snatch the country's limited market. With potentials
of new business opportunities, government steps at this stage should be to strengthen
local banks by undertaking needed reforms. Instead of doing so new banks was
permitted further squeezing the business opportunities. The competitor may come
with innovative ideas, which is difficult to adopt.

Problems Facing by the Company:

BRAC Bank Ltd. is facing several problems due to the current prevention of
corruption by the Government. They need to change and redesign their work process
according to the instruction of Bangladesh Bank. There are some legal issues given
below that have been included in the rules and regulations of Bangladesh Bank: -
- Change in Policy guidelines on internal control and compliance
- Change in the guidelines in prevention of money laundering
- Emphasize on ethical issues in order to reduce corruption and abuse of power
- Emphasize on prevention of terrorism by focusing more on customer details.

Remedies Adopted by BRAC Bank Ltd.:

BRAC Bank Ltd, Gulshan Branch always response immediately to the changing need.
The Head Office informs every changing rules and regulations properly to all the
branches. The branches then rectify the problems. Recently, they have faced serious
problems regarding anti money laundering. As a result they need to redesign their
account open format so that they can know every detail of the prospective client. The
recent strategy they are following in case of dealing with a new customer is “Know
Your Customer of KYC”. Under this method, the bank assesses the possibility of risk

72
regarding opening the account of a particular customer. Thus, they can prevent money
laundering as they will not allow any customer with illegal or doubtful account.

Moreover, they are thoroughly going through the previous accounts to find whether
there is any loophole or not. Thus they are indirectly helping the government in
averting corruption.

Overall Assessment of BRAC Bank, Head Office, Gulshan

Branch:
On the whole, BRAC Bank is doing well as an experienced bank in the industry. The
Gulshan branch of this bank has been able to meet the target of 2008 which indicates
their passion for achieving goals. Here is to mention that the profitability of the
branch is highly dependent on income from general accounts. They are trying to
improve their business performance by organizing general meeting among the branch
staffs to detect the existing problems and resolve them as soon as possible.

Future Direction:
BRAC Bank, Gulshan branch can extend their potentiality by increasing the credit
portfolio. They can procure lower cash deposit in order to invest more, increase non-
funded business so as to maximize dependency on interest earning from BRAC Bank
general account and to improve overall business performance of the branch to
maximize profit.

73
 Chapter 2
Project Part

74
Introduction to the Research:
The project part of this report includes a primary research about the customer’s
satisfaction level regarding BRAC Bank’s Premium Banking services. Premium
Banking is one of BRAC Bank’s exclusive new services designed with most valued
customer’s needs in mind. This part of report includes objective of the research,
methodology, hypothesis, about the product and research findings along with some
recommendations for the bank. In this part too, the format provided by the University
authority has been strictly followed.

Objectives of the Study:

The basic objectives of this study are as follows:
 To fulfil the partial requirement of BBA program.
 To have an exposure on the banking environment of Bangladesh.
 To gain different functions of banks.
 To have some practical experience that will be helpful for my BBA
program.
 To facilitate the student apply their theoretical knowledge in practical
level of operation of a bank as find out the differences between theory and
practice.
 To present an overview of BRAC Bank Ltd.
 To find out the internal and external lacking in the daily operation that
would help BRAC Bank Limited for more progress.
The proposed study will mainly intend to investigate the popularity of Premium
Banking Service amongst Premium Clients. In order to achieve this objective the
proposed study will try to find out how client perceive BRAC Bank’s Premium
Banking Service. The study shall try to examine about various aspects like perception
about the service, benefits for the client, perception about quality service, satisfaction
level of the service etc. amongst the clients who are Premium Banking Client.

The Scope of the Study:

The report covers the activities of different department of the Head Office of BRAC
Bank Limited. It has identified the major activities of banking as well as department

75
wise functions. It only focuses the overall mechanism of banking, in depth analysis of
every department & sub sections are not covered here.

Significance of the Study:

BRAC bank is serving its customers for more than five years. At present there are
numbers of national and international banks coming up with new services. Hence, the
competition has increased to a great extent. The services provided by the banks needs
to be satisfactory to its users. The study has tried to explore the potential opportunities
and threats regarding the Premium Banking Service provided by BRAC Bank.
Hopefully, the results of this perception survey will assist the company (BRAC Bank)
in identifying the strengths and weaknesses of its service and also to identify potential
opportunities and threats. It is also hoped that the results from this study will help
management in taking strategic decisions regarding its service features. The Premium
Banking Service has been chosen because they are the potential and the prospective
clients for the banks. If they are aware and satisfied about it now, they can be the part
of this exclusive service for a long time. Finally this study will provide a better
understanding of the premium client in general so that the product can be positioned
more effectively.

Hypothesis:
The Hypothesis regarding the research is “The satisfaction level of BRAC Bank’s
Premium Banking Service among the premium clients segment is effective”.

Methodology of the Study:

I went to Head Office BRAC Bank Limited, for my internee. The basic data both
primary and secondary used in the preparation of this report are obtained form:
 Personal observation of different tasks.
 Face to face conversation with the bank officers studying of different
files and books.
 Annual report of BRAC Bank Ltd.
 Periodicals published by Bangladesh Bank.

76
Sources of Data:
Both the primary as well as the secondary form of data is used to prepare the report.
The details of these sources are highlighted below.
 Primary Sources:
Primary data for this report had been collected through the interview, conversation &
discussion of different employees and Clients. On the job observation of the officers
has helped a lot to know information of banking. The executives & officers of BRAC
Bank were quite friendly & cooperative to provide lots of information to prepare this
report.

 Secondary Sources:
Secondary information was collected from:
 Annual report of BRAC Bank Ltd.
 Books on general banking.

The data generated is primary in nature. Data has been also collected through survey
questionnaires containing both structured and unstructured questions.
One set of questionnaires has been prepared. It was given to client or employees who
are main stakeholders of Premium Banking Service in order to identify their
satisfaction level.

Sampling Method:
Convenient sampling method was adopted whereby most of the respondents available
at Gulshan Branch.
• Target Respondents:
For the sake of simplicity and the reason of easy availability the study concentrated on
existing PB clients only.
• Sample Size:
The selection of the sample was random and the sample size is 30. This set of
questionnaire has been used to conduct an investigative research. The null hypothesis
that the satisfaction about Premium Banking services among the clients is positive
will be tested against the alternate that is they are dissatisfied. The dependent variable
Y (CSI) is measured using 8 dimensions of customer’s satisfactions such as customers

77
rating on employees knowledge, patience, oral communication skills, affability,
situation adaptability, responds toward customers, sincere interest and employee
neatness, these 8 dimensions of customer satisfaction have been assigned with
weights according to their relative importance and thereby the CSI is calculated. The
independent variable X1 (CII) is measured using 3 critical factors that strongly
indicates customers degree of being informed of the services provided by PB such as
the time line of customers banking experience with PB, the extent to which costumer
read the instructions provided by PB and frequency of their visit to PB. Finally this
factor has been assigned with a weight according to their relative importance about
customer’s degree of being informed and thereby the CII is calculated. Both the
index, CSI and CII is calculated in a way that the upper limit of them is 500 and lower
limit is 0. Another independent variable X2 is a Dummy variable where the variable
takes the value 1 for employed customer and it takes the value 0 for unemployed
customers.

Graphs and Analysis:

Gender
Female
Male

47
53

Fig. 2.1:
Gender
Distribution of
the Premium
Banking
Customers

Table 2.1: Gender Distribution of the Premium Banking Customers

78
 Cumulative
Frequency Percent Valid Percent Percent
Valid Female 14 46.7 46.7 46.7
Male 16 53.3 53.3 100.0
Total 30 100.0 100.0

I surveyed 30 customers in which 46.7% were females and 53.3% were males. This
can be explained through various spheres. It means that there has been a growing
amount of women literacy. More women are now originating in the work field with
their male co-workers. So they need banking facilities.

50

40

t
n30
e
c
r
e
P20

10

0
19-28 29-38 39-48 49-58 >59
Customer'sAge
Fig. 2.2: Age Distribution of the Customers

Table 2.2: Age Distribution of the Customers

Cumulative
Frequency Percent Valid Percent Percent
Valid 19-28 8 26.7 26.7 26.7
29-38 13 43.3 43.3 70.0
39-48 5 16.7 16.7 86.7
49-58 2 6.7 6.7 93.3
>59 2 6.7 6.7 100.0
Total 30 100.0 100.0

From the table we see that most of the customers were fell age group of 29 to 38
years. Next were from 19 to 28 years old, the rest being inconsequential. This can be
show that the younger customers lean to bank more than the elder customers.

79
 Marital
Status
Married
Single

47
53

Fig. 2.3: Frequency Distribution of the Marital Status

Table 2.3: Frequency Distribution of the Marital Status

Cumulative
Frequency Percent Valid Percent Percent
Valid Married 16 53.3 53.3 53.3
Single 14 46.7 46.7 100.0
Total 30 100.0 100.0

This will be shown that there isn’t much variation between the numbers of married
and unmarried customers. It means that in the recent time people get married in a later
age.

80
70
60
50
40

30
20
10
0
Employee Businessman Housewife Student
Profession
Fig. 2.4: Distribution of Profession of the Customers

Table 2.4: Distribution of Profession of the Customers

Cumulative
Frequency Percent Valid Percent Percent
Valid Employee 6 20.0 20.0 20.0
Businessman 20 66.7 66.7 86.7

80
 Housewife 2 6.7 6.7 93.3
Student 2 6.7 6.7 100.0
Total 30 100.0 100.0

As we can see that most of the customers plunge under businessmen and employees
category compared to housewife and student. So from this statistics we learn that
people who are engaged in daily transactions banking is more important for them.

54

52

50

48

46

44

42
Masters Degree Bachelor Degree
Educational Qualification
Fig. 2.5: Educational Qualification of the Customers

Table 2.5: Educational Qualification of the Customers

Cumulative
Frequency Percent Valid Percent Percent
Valid Masters
14 46.7 46.7 46.7
Degree
Bachelor
16 53.3 53.3 100.0
Degree
Total 30 100.0 100.0

From the above table we see that most of the customers are bachelor degree. But there
is not a much difference between the bachelor degree and masters degree. When I
surveyed the customers I did not get any illiterate customers.

81
 40

35

t 30
n
e
c
r 25
e
P20

15

10

Banani Gulshan Uttara

Dhanmondi Others
Residence
Fig. 2.6: Distribution of the Residence of the Customers

82
 Table 2.6: Distribution of the Residence of the Customers
Cumulative
Frequency Percent Valid Percent Percent
Valid Banani 8 26.7 26.7 26.7
Dhanmondi 4 13.3 13.3 40.0
Gulshan 11 36.7 36.7 76.7
Others 3 10.0 10.0 86.7
Uttara 4 13.3 13.3 100.0
Total 30 100.0 100.0

Most of the customers stay in Gulshan and Banani. This can be explained as such that
the survey was conducted in the Gulshan Branch of BRAC Bank Premium Banking.
Since, most of the customers of that branch come from that area; it is evident that this
will be the result.

1<
1-6
6 - 12
>12

Fig. 2.7: Number of months with BRAC Bank PB

Table 2.7: Distribution of the Number of months the Customers are with Premium
Banking
Cumulative
Frequency Percent Valid Percent Percent
Valid 1< 4 13.3 13.3 13.3
1-6 14 46.7 46.7 60.0
6-12 8 26.7 26.7 86.7
>12 4 13.3 13.3 100.0
Total 30 100.0 100.0

It is seen that majority of the customers have been banking with BBL’s Premium
Banking for 1-6 months and the next is 6-12 months. It is same amount of customers
less than one month and greater than 12 month.

83
 Yes
No

40

60

Fig. 2.8: If the customer maintains accounts with other banks

Table 2.8: Frequency distribution of the customer if they maintain accounts with
other banks
Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 18 60.0 60.0 60.0
No 12 40.0 40.0 100.0
Total 30 100.0 100.0

This is another important component for the base of customer knowledge. It can be
assumed that if customers have accounts with other banks, they are likely to be well
informed about the current services available in the market at their due prices with
benefits.

50

40
tn
30
e
c
r 50.0%
e20
P

10 22.22%
11.11%
0
SCB HSBC
BRAC DBBL Others

Fig. 2.9: Customers Maintain Accounts With Which Other Banks

84
 Table 2.9: Customer Maintain Accounts with Which Other Banks
Cumulative
Frequency Percent Valid Percent Percent
Valid SCB 9 30.0 50.0 50.0
HSBC 4 13.3 22.2 72.2
DBBL 3 10.0 16.7 88.9
Others 2 6.7 11.1 100.0
Total 18 60.0 100.0
Missing System 12 40.0
Total 30 100.0

Customers who maintain accounts with other banks that are SCB, HSBC and DBBL.
This shows an increasing movement of the Bangladeshi investors and borrowers to
invest and save in multinational banks. This can result due to the exposed political
hubbub in the country, social reputation, etc.

Very
Important
Moderately
Important
Not Sure
17 3
Moderately
13 Less
Important
23
I dont need
to

43

Fig. 2.10: What the Customers Think About Reading Instructions

Table 2.10: What the Customers Think About Reading Instructions

Cumulative
Frequency Percent Valid Percent Percent
Valid Very Important 4 13.3 13.3 13.3
Moderately
13 43.3 43.3 56.7
Important
Not Sure 7 23.3 23.3 80.0
Moderately
Less Important 5 16.7 16.7 96.7
I dont need to 1 3.3 3.3 100.0
Total 30 100.0 100.0

Majority of the customers interviewed agree that it is moderately important to read

instructions provided by the bank. Then comes ‘Not Sure’. But a strong portion of the

85
customers also claims that they feel it’s moderately less important to read the
instructions and they can almost do without reading them!

Very
well
For the
sake of
reading
27
At times
37
Very
often

20

17

Fig. 2.11: How Well Customers Read Instructions Provided by Premium Banking

Table 2.11: How Well Customers Read Instructions Provided by Premium Banking
Cumulative
Frequency Percent Valid Percent Percent
Valid Very well 8 26.7 26.7 26.7
For the sake of
6 20.0 20.0 46.7
reading
At times 5 16.7 16.7 63.3
Very often 11 36.7 36.7 100.0
Total 30 100.0 100.0

Mass of the customers doesn’t read instructions that often. During my internship term,
I saw that customers face lots of problem because they don’t read the instructions
which will be provide by the bank. This will be very bad habit for the customers and
for this reason they suffered and also give pain to the bank. If they read the
instructions then they will save their time. From this I understand about the nature of
the customers.

86
 60

50

t 40
n
e
c
r 30
e 60.0%
P
20 40.0%

10

Yes No

The account with PB if Employee Account or not

Fig. 2.12: Percentage of Employee Accounts Amongst The Customers

Table 2.12: Frequencies of Employee Accounts Amongst the Customers

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 12 40.0 40.0 40.0
No 18 60.0 60.0 100.0
Total 30 100.0 100.0

Many companies pay their salary through banks. BRAC Bank also has the option and
names the accounts as employee accounts. When the employee changes the job, s/he
can just change the address and maintain the same account with BRAC Bank. From
my survey I found that only 40% customers maintained employee account.

87
 60

50

t 40
n
e
c
r
e 30
P

20

10

Quarterly Once a Twice a Once a

year year month
Frequency of visits to PB
Fig. 2.13: Frequency of Visits to BRAC Bank Premium Banking

Table 2.13: Frequency of Visits to BRAC Bank Premium Banking

Cumulative
Frequency Percent Valid Percent Percent
Valid Quarterly 7 23.3 23.3 23.3
Once a year 2 6.7 6.7 30.0
Twice a
4 13.3 13.3 43.3
year
Once a
17 56.7 56.7 100.0
month
Total 30 100.0 100.0

I asked the customers how frequently they visited the bank. Most of them regularly
visit the bank in a monthly basis. This indicates that they come into contact with the
services frequently. Remaining is visit in a quarterly or once a year or twice a year
which I found through survey.

88
 Excelent
Good
Neither
good nor
13 bad
23

63

Fig. 2.14: Customer Rating Services of BRAC Bank Premium Banking

Table 2.14: Frequency Distribution of Customer Ratings on PB Services

Cumulative
Frequency Percent Valid Percent Percent
Valid Excellent 4 13.3 13.3 13.3
Good 19 63.3 63.3 76.7
Neither good
7 23.3 23.3 100.0
nor bad
Total 30 100.0 100.0

This question directly asks how the customers would rate PB services. Most of the
customers agreed that they think that the service of PB is good. Although there are a
major number of customers saying that they are not sure and think about the service
that is neither good nor bad.

89
 Local
Currency
Current
Account
Local
Currency
20 17
Savings
3 Account
Company
60 Account
Foreign
Currency
Current
Account

Fig. 2.15: Type of Accounts Customer Maintains in BRAC Bank Premium Banking

Table 2.15: Type of Accounts Customers Maintained in BRAC Bank Premium

Banking
Cumulative
Frequency Percent Valid Percent Percent
Valid Local
Currency
5 16.7 16.7 16.7
Current
Account
Local
Currency
18 60.0 60.0 76.7
Savings
Account
Company
1 3.3 3.3 80.0
Account
Foreign
Currency
6 20.0 20.0 100.0
Current
Account
Total 30 100.0 100.0

Local currency savings account is the most popular account in BRAC Bank. Next,
nearly one third of the Local currency savings account is the current account (both
local and foreign currency ones). Company account also accounts in this table but it
grabs only a small part of the pie.

90
 Average amount of BDT maintained in PB of BBL

35
30 30 30
30

25

20

15
10
10

0
10000-50000 50001-500000 500001-5000000 >5000001

Fig. 2.16: Amount Maintained in the Accounts

Table 2.16: Amount Maintained in the Accounts

Cumulative
Frequency Percent Valid Percent Percent
Valid 10000-
3 10.0 10.0 10.0
50000
50001-
9 30.0 30.0 40.0
500000
500001-
9 30.0 30.0 70.0
5000000
>5000001 9 30.0 30.0 100.0
Total 30 100.0 100.0

This question is very crucial as well in determining which customers are more
satisfied. It can be seen that around 30% of the customers surveyed keeps from BDT
5,000,000 on an average. Only 10 percent maintains from BDT 10,000 to 50,000.

Yes
No
3

97

Fig. 2.17: ATM Card Used by the Customers

91
 Table 2.17: ATM Card Used by the Customers
Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 29 96.7 96.7 96.7
No 1 3.3 3.3 100.0
Total 30 100.0 100.0

Almost 97% of the customers maintain ATM Card with BRAC Bank Premium
Banking. This can tell a little crumb about the modern development towards
Bangladeshi hasty Life. The society towards contemporary breathing leads to use
ATM Cards and move away from traditional banking.

70
60
t 50
n40
e
c
r 66.67%
e30
P
20
10 13.33%
0 3.33%
Y T Q M W
Frequency of ATM
Card used

Fig. 2.18: How Frequent the Card is Used

Table 2.18: How Frequent the Card is Used

Cumulative
Frequency Percent Valid Percent Percent
Valid Yearly 1 3.3 3.3 3.3
Quarterly 4 13.3 13.3 16.7
Twice a
1 3.3 3.3 20.0
year
Once a
4 13.3 13.3 33.3
month
Every week 20 66.7 66.7 100.0
Total 30 100.0 100.0

Only querying about the ATM card if used or not really does not give much of a
meaning. It is up to the frequency of the card used that will help open the window and
give meaning to it. From this question I can be seen that almost all the customers use

92
the card on a weekly basis. This can reflect that a huge portion of the services
consumed by the customers fall under ATM.

Extent of ATM Troubles

50
45
40
35
30
25
20
15
10
5
0
Healthy amount Bearable Not that much Not at all!

Fig. 2.19: Extent to which there is a Problem with ATM Location

Table 2.19: Extent to Which There is a Problem with ATM Location

Cumulative
Frequency Percent Valid Percent Percent
Valid Healthy
8 26.7 27.6 27.6
amount
Bearable 2 6.7 6..9 34.5
Not that much 13 43.3 44.8 79.3
Not at all! 6 20.0 20.7 100.0
Total 29 96.7 100.0
Missing System 1 3.3
Total 30 100.0

Greater part answers that they do not face problems regarding the location of ATMs.
This can also be explained numerously. There can be some errors, since I collected
data from only Gulshan Branch and disregarded customers from other
branches/locations. Customers who come to Gulshan branch may be content with the
location since they travel in Gulshan and Banani area for their work, and there are
ATMs in both Gulshan and Banani. On the other hand, those who work in Motijheel
can face harsh problems due to lack of a single ATM in Motijheel area. 43.3% saying
that they don’t face that much problem but 26.7% says that they have a healthy
amount problem.

93
 Very
Much
Healthy
amount
10 7
7 Bearabl
e
Not that
much
24
Not at
52
all!

Fig. 2.20: Extent to which there is Problem with Number of ATMs

Table 2.20: Extent to Which There is Problem with Number of ATMs

Cumulative
Frequency Percent Valid Percent Percent
Valid Very Much 2 6.7 6.9 6.9
Healthy
2 6.7 6.9 13.8
amount
Bearable 7 23.3 24.1 37.9
Not that much 15 50.0 51.7 89.7
Not at all! 3 10.0 10.3 100.0
Total 29 96.7 100.0
Missing System 1 3.3
Total 30 100.0

This question is different from the previous one in the dimension that the problem
faced in this one is regarding the number of ATMs. Compared to the response of the
previous question, customers are more satisfied with the number of ATMs. This can
also be addressed with the similar error faced before (customer base is limited in the
sense that only Gulshan Branch customers were surveyed). From the survey we get
that 50% don’t face not that much problem, 10% says “Not at all” and remaining says
that they have a very much and healthy amount problem. Only 7% says that the
location problem is bearable.

94
 Very
Much
Healthy
amount
10
7 Bearable
Not that
14 much
69

Fig. 2.21: How Annoyed Customers are With ATM Service

Table 2.21: How Annoyed Customers are With ATM Service

Cumulative
Frequency Percent Valid Percent Percent
Valid Very Much 3 10.0 10.3 10.3
Healthy
2 6.7 6.9 17.2
amount
Bearable 4 13.3 13.8 31.0
Not that much 20 66.7 69.0 100.0
Total 29 96.7 100.0
Missing System 1 3.3
Total 30 100.0

Since ATM covers a big portion of the services offered by Premium Banking,
dissatisfaction in the machines poses a big threat to the image of the bank. Customers
when asked how annoyed they are with ATM services? Majority answers ‘Not that
much’. But significant amount also answers that they are annoyed with the machine. I
also faced almost regular cases regarding ATM failures. One of the things the
customer gets annoyed is the few seconds the machine waits for the PIN after which it
retains the card. The customers have to wait at least for a day to get back their cards.
In my internship period I also faced this problems.

95
 Yes
No
23

77

Fig. 2.22: Credit Card Used

Table 2.22: Credit Card Used

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 7 23.3 23.3 23.3
No 23 76.7 76.7 100.0
Total 30 100.0 100.0

From the graph I see that only 23.3% people agreed that they used credit card and
most of the customers don’t use the credit card. It means that they are not much
satisfied about the credit card service.

Once a
Year
Quarterly
13
Twice a
3 year
7
Once a
month
77

Fig. 2.23: Frequency of credit Card Used

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 Table 2.23: Frequency of credit Card Used
Cumulative
Frequency Percent Valid Percent Percent
Valid Once a year 23 76.7 76.7 76.7
Quarterly 2 6.7 6.7 83.3
Twice a
1 3.3 3.3 86.7
year
Once a
4 13.3 13.3 100.0
month
Total 30 100.0 100.0

Only 23% of the customer I surveyed uses credit cards. Fig. 2.23 depicts that most of
the people who use credit cards uses it very little, like once a year. This can be
explained with the limited usage of credit cards in the country. But much to
modernization, a change in the pattern is seen to have followed until very recently.

Know ledge of Relationship Manager

60

50

40

30

20

10

0
Strongest Very strong Moderately strong

Fig. 2.24: Knowledge of Relationship Manager about PB Service

Table 2.24: Knowledge of Relationship Manager about PB Service

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongest 5 16.7 16.7 16.7
Very Strong 9 30.0 30.0 100.0
Moderately
16 53.3 53.3 70.0
Strong
Total 30 100.0 100.0

This is an essential measure in determining the customer satisfaction level. This graph
suggest that what the customers think about the PB RM’s & ARM’s knowledge level
about the subject matter they deal with. Customers rated this very liberally. Almost all
agreed strongly that the employees are well skilled for the profession they do.

97
Cross Tables:
Cross tabulation 1. Read instructions * Annoyed with ATM machine
services

Read instructions * Annoyed with ATM machine service Crosstabulation

Annoyed with ATM machine service

Healthy
Very Much amount Bearable Not that much Total
Read Very well Count 0 0 4 4 8
instructions % within Read
.0% .0% 50.0% 50.0% 100.0%
instructions
For the sake of reading Count 0 0 0 5 5
% within Read
.0% .0% .0% 100.0% 100.0%
instructions
At times Count 0 0 0 5 5
% within Read
.0% .0% .0% 100.0% 100.0%
instructions
Very often Count 3 2 0 6 11
% within Read
27.3% 18.2% .0% 54.5% 100.0%
instructions
Total Count 3 2 4 20 29
% within Read
10.3% 6.9% 13.8% 69.0% 100.0%
instructions

Chi-Square Tests

Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 20.827a 9 .013
Likelihood Ratio 22.041 9 .009
Linear-by-Linear
2.554 1 .110
Association
N of Valid Cases 29
a. 14 cells (87.5%) have expected count less than 5. The
minimum expected count is .34.

Cross tabulation 2. Read instructions * Profession

Read instructions * Profession Crosstabulation

Profession
Businessman Employee Housewife Student Total
Read Very well Count 0 8 0 0 8
instructions % within Read
.0% 100.0% .0% .0% 100.0%
instructions
For the sake of reading Count 5 1 0 0 6
% within Read
83.3% 16.7% .0% .0% 100.0%
instructions
At times Count 0 3 0 2 5
% within Read
.0% 60.0% .0% 40.0% 100.0%
instructions
Very often Count 1 8 2 0 11
% within Read
9.1% 72.7% 18.2% .0% 100.0%
instructions
Total Count 6 20 2 2 30
% within Read
20.0% 66.7% 6.7% 6.7% 100.0%
instructions

98
 Chi-Square Tests

Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 32.420 a 9 .000
Likelihood Ratio 28.349 9 .001
N of Valid Cases 30
a. 14 cells (87.5%) have expected count less than 5. The
minimum expected count is .33.

Cross tabulation 3. Read instructions * Educational

Qualification

Read instructions * Education Level Crosstabulation

Education Level
Undergra
Postgraduate duate Total
Read Very well Count 4 4 8
instructions % within Read
50.0% 50.0% 100.0%
instructions
For the sake of reading Count 5 1 6
% within Read
83.3% 16.7% 100.0%
instructions
At times Count 5 0 5
% within Read
100.0% .0% 100.0%
instructions
Very often Count 0 11 11
% within Read
.0% 100.0% 100.0%
instructions
Total Count 14 16 30
% within Read
46.7% 53.3% 100.0%
instructions

Chi-Square Tests

Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 18.616a 3 .000
Likelihood Ratio 24.958 3 .000
N of Valid Cases 30
a. 6 cells (75.0%) have expected count less than 5. The
minimum expected count is 2.33.

99
Cross tabulation 4. Read instructions *Customer’s Age

Read instructions * Customer's Age Crosstabulation

Customer's Age
19-28 29-38 39-48 49-58 >59 Total
Read Very well Count 3 5 0 0 0 8
instructions % within Read
37.5% 62.5% .0% .0% .0% 100.0%
instructions
For the sake of reading Count 0 1 4 0 1 6
% within Read
.0% 16.7% 66.7% .0% 16.7% 100.0%
instructions
At times Count 3 2 0 0 0 5
% within Read
60.0% 40.0% .0% .0% .0% 100.0%
instructions
Very often Count 2 5 1 2 1 11
% within Read
18.2% 45.5% 9.1% 18.2% 9.1% 100.0%
instructions
Total Count 8 13 5 2 2 30
% within Read
26.7% 43.3% 16.7% 6.7% 6.7% 100.0%
instructions

Chi-Square Tests

Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 22.883a 12 .029
Likelihood Ratio 23.633 12 .023
N of Valid Cases 30
a. 20 cells (100.0%) have expected count less than 5. The
minimum expected count is .33.

100
 Cross tabulation 5. Number of months with PB * Rate Customer
Service of PB
Number of months with PB * Rate Customer Service of PB Cross tabulation

Rate Customer Service of PB Total

Neither
Excellen good nor
t Good bad
Number of <1 Count
months 1 3 0 4
with PB
% within
Number of
25.0% 75.0% .0% 100.0%
months with
PB
1-6 Count 0 12 2 14
% within
Number of
.0% 85.7% 14.3% 100.0%
months with
PB
6-12 Count 2 3 0 5
% within
Number of
40.0% 60.0% .0% 100.0%
months with
PB
>12 Count 1 1 1 3
% within
Number of
33.3% 33.3% 33.3% 100.0%
months with
PB
Count 4 19 7 30
Total % 13.3% 63.3% 23.3% 100.0%
Chi-Square Tests

Asymp.
Sig. (2-
Value df sided)
Pearson Chi- 23.333(a
8 .003
Square )
Likelihood Ratio 24.546 8 .002
N of Valid Cases 30
a. 14 cells (93.3%) have expected count less than 5. The minimum expected count is .
40.
Cross Tabulation Analysis:
According to the figures in cross tabulation 1, it can be seen that those who read
instructions are more satisfied than those who rarely do. This can help to correlate

101
because the chi-square test helped me be sure that there exists some relationship
between the variables. I am sure because the assume value is less than 0.05. In the
second cross table, it is found that those who are businessmen and have accounts in
BRAC Bank tend to read instructions way more than those of other profession like
employees, students, housewives and others. This is also made sure by the chi-square
test. I undertook many variables with which I tested through cross tables, but I
considered only those which the passed the chi-square test. There is a relationship
between reading instructions and educational qualification of the customers according
to the chi-square test, but the percentage in the table does not show much difference
between those who are bachelor degrees and those who are master degrees. The next
cross table is regarding reading the instructions with their respective ages. The result
is surprising, since the younger customers tend to read much more than the elder ones.
The age ranges from mainly 29-38 years. That whose age ranges from 39-48 mostly
reads instructions for the sake of reading. The fifth cross table portrays the
relationship between the numbers of months a customer has been banking with BRAC
Bank Premium Banking with rating the CS of PB. The table represents that customers
who banked for 6-12 months have rated PB as either ‘Excellent’ or ‘Good’. Although
it can be said that the trend is that higher the number of months that a customer banks,
better is the ranking for CS. But a technical problem persists; customers who’ve been
banking for more than 12 months tend to rate the CS equal amounts of ‘excellent’,
‘Good’ and ‘Bad’. So it is not proper to state that pattern. These are the few insights
taken from the tables.

Regression Analysis:
Introduction:
Regression analysis is a modelling technique that identifies, quantifies, and describes
the relationship between at least two variables, which depend on one another because
of an underlying theoretical reason. In a multiple regressions, we have several
independent variables, which are used to predict the dependent variable.

Description and specification of the model:

The dependant variable of this model is CSI (Customer Satisfaction Index) and the
independent variables are CII (Customer Informed Index) and customer’s

102
employment condition, a dummy variable. CSI index (Customer Satisfaction index)
includes 8 dimensions of customer’s satisfactions. The independent variable CII
(Customer Informed Index) is measured by using 3 critical factors that strongly
indicates customers’ degree of being informed of the services provided by PBS. This
model also includes a dummy variable as another independent variable in order to test
the relation whether customer’s employment status has any relation. Usually, a
dummy variable is a numerical variable used in regression analysis to represent
subgroups of the sample in your study. In research design, a dummy variable is often
used to distinguish different treatment groups. Dummy variables are useful because
they enable to use a single regression equation to represent multiple groups. This
means that we don't need to write out separate equation models for each subgroup.
The dummy variables act like 'switches' that turn various parameters on and off in an
equation. Here, a 0, 1 dummy variable is used where the variable takes the value 1 for
employed customer and it takes the value 0 for unemployed customers. However, It is
expected CII is positively related with CSI and dummy variable is also expected to be
positively related with CSI. More importantly, it is assumed that these two
independent variables are expected to be linearly related with the dependent variable,
CRI.

The population multiple regression equation is as follows:

Y= β 0 +β 1X1 +β 2X2 + ε
Here,
Y = CSI Index
β 0 = intercept of the regression line.
β 1 = coefficient of independent variable X1 (CII)
β 2 = coefficient of independent variable X2 (Dummy Variable)
X1 = CII.
X2 = Dummy variable; takes the value 1 for employed customer and it
takes the value 0 for unemployed customers.
ε = Random error with the mean 0.

103
Assumptions of the model:
For this model we are assuming that other variables that have influences on CSI Index
as constant. We have assumed some standard clauses to use ordinary least square
method, which are known as classical group of assumptions: These are:
 Xi's are fixed or if Xi’s are independent of ε i's. [ i=1,2,…..,n]
 ε i's are random variables with mean = 0. [ i=1,2,…..,n]

 V (ε i)=E [ε i -E (ε i)]2 = E (ε i )=σ

2 2
E is constant. [ i=1,2,…..,n]

 Ei's are independent of each other. [ i=1,2,…..,n]

 There is no set of nonzero constant Co, C1, …..,Ck such that, C0+C1X1+
………..+CkXk = 0. So, X1,…………...XK are linearly independent.
[ i=1,2,…..,n]

Model Estimation & Interpretation:

The regression equation is
Y = 331 + 0.234 X1 - 11.5 X2

β0 = 331
β0 is the intercept of the regression line. Here, b0 =331 means if all the independent
variable takes the value zero, on an average, the CSI (Customer Satisfaction Index)
will be 331.

β1’s estimate b1 =0.234

Other things remaining the same, if the CII (Customer Informed Index) increases by
1, on an average, the CSI (Customer Satisfaction Index) will go up by an additional
0.234.

β2’s estimate b2 = -11.5

Other things remaining the same, for employed Customer CSI (Customer Satisfaction
Index) is 11.5 lower than unemployed customers. It basically indicates that on an
average the less satisfied with the services than the unemployed customers, surprising
it is the opposite of the prior expectation.

Co-efficient of determination R2 = 22.5%

104
R-sq is 22.5% means almost 22.5% of the observed variability in the dependent
variables is explained by the independent variables of our regression model. So, this
regression equation has a very low explanatory power. However, in cross sectional
data R-sq is usually very low. Importantly, a problem of using R2 as an overall
measure of the quality of a fitted equation is that when we add more and more
variables in a model, even if these variables are irrelevant to the model, it raises the
value of R2. So, R2 is not a good indication of the model’s overall quality. Rather the
adjusted coefficient of determination should be used for measuring the overall
performances of the model.

Adjusted R2 = 16.8%
R-sq (adj) is the adjusted or corrected co-efficient of determination. R2 (adj) is 16.8%
means almost 16.8% of the observed variability in the dependent variables is
explained by the independent variables of our regression model.

Hypothesis Testing:
In this section of regression analysis, the methodology of hypothesis testing is used to
test a null hypothesis to find out whether the combination of all the variables is useful
predictors of the dependant variable. Another tests of hypothesis for partial regression
coefficients (That is, H0: β j = 0) are used to determine if a specific independent
variable is conditionally important in the multiple regression model. By using the
Student’s t statistics and p-value it is concluded whether or not a particular predictor
variable is conditionally significant, given the other variables in the regression model.
(The following two tables provides the required value for the hypothesis test &
interval estimation)

Standard Lower Upper

Coefficients Error t Stat P-value 95% 95%
Intercept 330.71 27.35 12.09 0.00 274.60 386.82
X1 0.23 0.08 2.80 0.01 0.06 0.41
X2 -11.50 17.80 -0.65 0.52 -48.03 25.02

ANOVA df SS MS F Significanc
eF

105
Regression 2 7928.85 3964.42 3.92 0.031
Residual 27 27253.81 1009.40
Total 29 35182.67

Test of Significance for the whole Regression:

First, hypothesis test is to test a null hypothesis to find out whether the combination of
two independent variables is useful predictors of the dependant variable. Accepting
this hypothesis will conclude that none of the predictor variables regression model is
statistically significant and thus it provide no useful information.
Null Hypothesis Ho: β 1= β 2= 0
Alternative Hypothesis H1: At least one β j ≠0 (j = 1,2,3,4,5 )
Decision Rule: We reject the null hypothesis if
Fcal >F tab
Or, (SSR/k) / [SSE/(n-k-1)] >F tab
Fcal = 3.92
F tab= FK, n-K-1, α = F 2, 30-3, 0.05 = F 2, 27, 0.05 = 3.35
Here, F cal >F tab. Therefore, I reject the null hypothesis that all coefficients are zero
against the alternative hypothesis at 5% level of significance. The p-value or the
smallest significance level at which the null hypothesis can be rejected is 0.031. So,
the entire variable as a whole can predict the dependable variable (CSI) and the
combined effect of these two variables do improve the model that predicts CSI.
Now, the hypothesis testing for each of the coefficients is done to analyze if
individually they have any influence on the dependent variable keeping the other
variable constant.

For the intercept the Hypothesis Testing: (Two sided test)

Null Hypothesis Ho: α = 0
Alternative Hypothesis H1: α ≠ 0
Decision Rule: We reject the null hypothesis if T cal> T tab.
t cal = 12.09
t tab = t n –k-1, α / 2 = t 30 -3, .0.25 = t 27, .0.25 =2.052
Here t cal is greater than t tab. therefore I fail to reject the null hypothesis against the
alternative hypothesis at 5% level of significance with the two-sided test. The p-value
or the lowest level of significance at which the null hypothesis can be rejected is 0.00.

106
Hypothesis Testing For β 1:
Null Hypothesis Ho: β 1 ≤ 0
Alternative Hypothesis H1: β 1 > 0
Decision Rule: We reject the null hypothesis if, t cal> t tab
t cal = (b1-β 1) / Sb1 = 2.85
t tab = t n –k-1, α = t 30 -3, .0.5 = t 27, .0.5 = 1.701
Here t cal is greater than t tab . Therefore I reject the null hypothesis against the
alternative hypothesis at 5% level of significance. Therefore, the CII is statistically
significant predictors of the dependant variable (CSI); and it has a positive
relationship with the CSI (Customer Satisfaction Index). However, the p-value or the
smallest significance level at which the null hypothesis can be rejected is 0.001.

Hypothesis Testing For β 2:

Null Hypothesis Ho: β 2 ≤ 0
Alternative Hypothesis H1: β 2 > 0
Decision Rule: We reject the null hypothesis if, t cal> t tab
t cal = (b2-β 2) / Sb2 = -.65
t tab = t n –k-1, α = t 30 -3, .0.5 = t 27, .0.5 = 1.701
Here t cal is less than t tab . Therefore I fail to reject the null hypothesis against the
alternative hypothesis at 5% level of significance. However, the p-value or the
smallest significance level at which the null hypothesis can be rejected is 0.52. This
indicates that the customer’s employment status is not a statistically significant
variable for predicting customer’s satisfaction about the service.

Confidence Interval:
Another way of determining whether a specific independent variable is important in
the multiple regression models is to find the confidence interval. The 95% confidence
intervals for β 0, β 1, β 2, is estimated in the following.

95% confidence interval for β 0:

107
The 95% confidence interval for Y-intercept (β 0) ranges from 274.60 to 386.82. Here
the 95% confidence interval for β 0 does not include 0, and thus I reject the two-tail
hypothesis that the intercept coefficient is 0. Based on this confidence interval, it can
be conclude that the intercept a statistically significant predictor in the multiple
regression model.

95% confidence interval for β 1:

The coefficient for the CII has a 95% confidence interval 0.06< β 1 <0.41. Here the
95% confidence interval for β 1 does not include 0, and thus I reject the two-tail
hypothesis that this coefficient is 0. Based on this confidence interval, it can be
conclude that X1 (CII) is a statistically significant predictor variable in the multiple
regression model.

95% confidence interval for β 2:

The coefficient dummy variable has a 95% confidence interval -48.03< β 2 <25.02.
As the confidence interval includes 0, and thus I cannot reject the two-tail hypothesis
that the intercept is 0. Based on this confidence interval, it can be conclude that the
dummy variable (customer’s employment status) is not a statistically significant
predictor variable in the multiple regression models.

Analysis of Residual:
The normality plot indicates an approximate linear relationship, thus it is impossible
to reject the assumption of normally distributed residuals.

108
 Normal Probability Plot of the Residuals
(response is Y)

1
Normal Score

-1

-2

-50 0 50

Residual

Fig 2.25: Normal Probability Plot of Residual

The next residual analysis examines the relationship between the residual and the
dependent variable (both the observed and predicted value). But, this plot does not
provide any clear relationship or any useful information. However, there is no
relationship between the residuals and the predicted value, thus the model errors is
stable over the range.

Research Implications:
Hypothesis test of the coefficients of this model indicates that the independent
variable CII is significant; where as another independent variable the employment
status of employees is not statistically significant. The confidence interval analysis
also supports the above findings. Therefore, the findings indicate that the level of
customer satisfaction about the services provided by Premium Banking is positively
related with the level of knowledge about its service package by its customers. The
hypothesis of this regression analysis that “The customers who are more informed
about the services tend to be more satisfied than those who are less informed.” proved
by the above findings. However, another hypothesis that the employed customers
(who are working in any organization) are more satisfied than the unemployed
customers (students, housewife etc.) cannot be proved by our findings.

109
Problems with the Model:
Before moving to the findings of this regression analysis it is highly recommended to
the reader to the aware about some the problems/limitation of this analysis. Like any
other study the limitations of the study is not out of questions, but the following
factors seem to me the main points of weakness of this study. The major limitations of
this report are as follows:
 Large-scale research was not possible due to time constraints.
 Non availability of data in a systematic way.
 Time constraint.
 Availability of the reference book is another limitation.
 It is very busy office. In this place employees get very little time to teach
theoretical knowledge to the trainee.
 I was not able to visit the different branches of BRAC Bank Ltd.
 Furthermore, the sample size is relatively small so the responses may not be
completely free from bias.
 In addition to that, the customers for FDR account only come in the month of
1 to 15. So, they were not available all the time.

Findings:
On the basis of previous analysis and practical experience of 3 months internship
program, the following findings are observed during the research period:

 Need professional data entry operator.

 Skilled human resource in every department
 Inadequate work force
 Lack of proper coordination among different departments.
 BRAC Bank Ltd. is not using advance and develop software. They are using
only one software.
 Inadequate facilities of Ascend Millennium Banking System.
 Conservative Management.
 Unauthorized use of different ID in system.
 Lack of motivation and training program.

110
  Absence of proper guideline/ planning of respective job.
 No structured reconciliation process.
 Limited knowledge about PC and related software.
 Duplication of work like; checking and over documentation.
 BRAC Bank Ltd. is doing their Office work manually. But other banks are
using many developed techniques and software.
 Less secured than the department should be.
 Less structured than other departments.
 Day by day new upcoming banks are coming with many new services which
are a threat for the bank. So increased number of new bank creates sever
competition in consumer service.

Recommendation:
As I have gone through all the departments under Premium Banking. I have come up
with some points, which can improve the efficiency as well as quality of the work.
The points are as below;

 Setting proper planning for each and every work as well as for the whole
department.
 Designing jobs on priority basis.
 Assigning necessary manpower for every job.
 Proper maintenance of files and necessary files and documents on daily basis.
 Proper managerial observation and cooperation.
 Separating Card department and concern operation.
 Avoiding duplication through accuracy and efficiency.
 Developing motivational program and training program.
 Ensure that every one working in Software knows it properly and giving them
personal ID.
 And most of all change of managerial attitude and view point.
 Need a separate PB lounge to save the customer’s time.
 Need a separate phone line service for the PB clients.

111
Conclusion:
We moved a long way from the time when the banks were deposit taking and money-
lending institution. The old concepts, attitudes and methods in banking have
undergone a marked change all over the world. Modern Banking is an outcome
development driven by changing financial activities and lifestyle. Bangladesh has not
lagged behind. Banks are required to participate in the nation building activities and
act as agent for bringing about socioeconomic changes.

Entering as a new bank in private banking scenario of Bangladesh, BRAC Bank is

constantly try to cross the obstacles regarding typical business oriented ideas and
come up with innovative curtailed to its Consumers need to harvest maximum benefit
for them. BRAC Bank Limited is a third generation bank inaugurated on 4 July 2001
with a mission of providing best banking service in the country to enhance economic
activity. In the world of global economy, banking needs have become more diverse
and exotic than ever before. In this regard BRAC Bank promises to fulfil every
possible Customer needs with high quality service and satisfaction. This success has
resulted from the dedication, commitment & dynamic leadership of its management
over the periods. To become market leader in providing banking services,
introduction of sophisticated banking instruments i.e., online banking services, ATM
services is a demand of time. BRAC Bank is maintaining it’s competitiveness by
leveraging on its Online Banking Software and modern IT infrastructure. It is the
pioneer amongst the local banks in introducing innovative products like SMS
Banking.

I was authorized to prepare a report on customer satisfaction about the Premium

Banking service and the functions of BRAC Bank Ltd. for partial fulfilment of my
course requirement. It was a great experience for me to have exposure in the practical
field. As a new bank it has a long way to go. There is huge pressure of work in
BRAC Bank Limited hut the coordination that I get some officials was very helpful
for me. Though having some drawbacks the bank’s overall performance is
satisfactory. I wish a prosperous future for the Bank.

112
Chapter 3
Cases

113
Case 1:
Picnic to Cox’s Bazar:
Bank jobs are usually routine jobs and employees get fed up with their monotonous
nine to six job life. So, they frequently need some arrangements of picnics and tours
that can be helpful for their refreshment and entertainment. BRAC bank Ltd. arranges
picnic outside Dhaka. But after a long period of time, the bank declared holiday for
consecutive three days on the occasion of the Lailatul Barat. The Relationship
Managers of BRAC Bank Ltd. thought of making this holiday a memorable one and
took the initiative of going to a picnic to Cox’s Bazar with the whole team members.
He submitted an application to the head office of BRAC bank Ltd. for asking the
permission of arranging a picnic. Finally, the head office granted the proposal. The
picnic fee per person was Tk 2500 and the rest of the financing was contributed by the
Agrabad Branch of BRAC Bank Ltd.
Everybody was highly glad that they began to take preparation for the picnic from one
month prior. But during the preparation time, lots of conflict and disagreement arose
regarding different matters. The first issue of controversy was whether they would
reserve an air-conditioned or non air-conditioned bus. Some preferred AC bus while
others preferred non AC bus. So this disagreement was going on and on. Finally it
was decided that a vote would be held between AC bus and non AC bus to resolve
that problem and they would choose the one which would get the majority vote. The
majority vote was for the Ac bus and thus the problem was solved.
After a long enthusiastic moment, finally that day came. It was 14th February’2008
and the office was open on that day. The picnic team would set off for Cox’s Bazar at
8 p.m. The interesting fact is that nobody could concentrate on work due to
excitement about the picnic. Everybody was waiting for the time with great eagerness.
But at the eleventh hour, another issue of controversy arose between two groups of
employees. One group was saying that the reserve bus would be in front of their office
when they would set off for Cox’s Bazar while other group was saying that they
would set off from Gabtoli. Gradually, it was turning into a stormy debate and the
executive officer Mr. Rahman who was given the responsibility of reserving the bus
was annoyed with all those controversies and he said that he would not go to Cox’s
Bazar. After that, the two conflicting groups understood that the situation was getting
worse for no reason and they mutually resolved the disagreement by coming to a

114
common decision that they would set off from their office. Then, they all apologized
to Mr. Rahman and requested him to change his negative decision. Finally, he was
agreed.
The whole team really spent a marvellous weekend at Cox’s Bazar. After enjoying a
joyful weekend with the co-workers, they returned to Dhaka at 7 a.m. on 18 th
morning. They had to attend the office on that day but they were still very refreshed
after a long journey. All the employees were working with renewed energy and
vigour. So, I think this sort of official picnics should be arranged quite frequently to
break the monotony of the employee’s lives.
It was really a different experience!! I never had the idea about how all these
preparations take place in an organization while arranging such outdoor programs. I
had great willingness to go with them but I was not allowed to go from my family.

Case 2:
Conflict between two departments:
Little after my joining, my manager asked me to write a mail to our IT counterpart so
that they give all of the Premium Banking team members at head office an access to
the software we use in BRAC Bank Ltd. The vision of seeking such permission was to
enhance the operational excellence and make executives more independent to handle
customer issues. But unfortunately IT team did not understand our concern, they
replied me saying that all the departments have only one executive/manager who can
access the software, and therefore there is no reason to provide access to each
individual of Premium Banking access to the software. They termed such an effort
“over enthusiasm and over exercise of authority”. When the reply came I understood
that there is a communication gap between, and IT team has misunderstood us. I
forwarded the mail to my line manager, and asked for his advice. He called me and
gave me a passionate hearing, after becoming full aware of the situation, he wrote a
email on top of the previous emails, keeping our team mates, his line manager, IT
team members, IT manager, Finance director (line manager of IT manager) in the
loop. He explained in detail why the permission was required and why in business
context the permission requirement of Premium Banking was different from other
departments. The finance director replied to the mail shortly instructing the IT team to
give permission, the IT team was also convinced with the explanation and they gave

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the permission. This was a good lesson for me about how to handle conflicts in a
corporate environment.

Case 3:
Sponsoring a Car for “Close up 1: Tomkei Khujche bangladesh”:
Meeting the corporate social responsibilities, a company can enhance its widespread
recognition. Since its inception BRAC Bank Ltd. has been donating enormous money
for social purposes. BRAC Bank Ltd., with participation from Western Union Money
Transfer, this year has financed the famous NTV talent hunt “Close up 1: Tomkei
Khujche bangladesh”. The sponsoring has been made in terms of a prize – a Car –
that will be donated to the winner of the talent hunt. The BRAC Bank Ltd. donation
for such a television talent hunt is a milestone in the history of Bangladeshi TV
programs. The Marketing department of BRAC Bank Ltd. headed by Manager
Marketing and MD of the bank signed a contract with NTV on this.

Case 4:
A new branch at Mohammadpur:
A major incident took place during the course of my internship. That was the grand
inauguration of BRAC Bank Ltd. in Mohammadpur Asad Gate. August 18, 2008 was
the joyful day colored with balloons and posters that the new branch started its
journey. This is the 29th branch of BRAC Bank Ltd. The branch has already started to
get acceptance from customers. At the very first day more than hundred customers
opened their savings account in that branch. One limitation of this branch is that it has
only general banking section and no corporate banking facilities in house in the
branch. As I was working with Premium Banking in the center point, I had to
communicate with the in charge of Premium Banking in the new branch – Mr.
Towhidul Islam, Relationship Manager on different occasions and activities.

Case 5:
Celebrating my birthday at office:
August 02 was my birthday. I was not aware that my colleagues know my birthday,
and also I did not tell anyone about the birthday. Just before close of business, my
team mates had arranged a surprise party for me. They brought a cake with a burning

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candle on top to my desk, all of them were singing – “Happy birthday to you …” for
me. I blew the candle off and cut the cake, and we all participated in the refreshment.
They presented me a card where all of them wrote to me their greetings and blessings,
with the card another gift was a novel book of Shirshendu Mukharjee. Such parties
are really motivating for employees, and add values to the satisfaction of individuals.

Case 6:
An incident in cash counter:
In an early June afternoon the bank was open in its usual time. At that time I was
working around the cash section. There was a huge line in front of the cash
withdrawal counter that day. A middle aged gentleman was waiting to withdraw for a
pretty long time, he was annoyed and cursing the bank authority for wasting his
valuable time by making him to stand in the line. He was cursing the inefficiency of
the cash officers. When his time came he threw the cheque in the face of the cash
officer and demanded the delivery. It was humiliating for the officer on duty at the
cash. He reacted violently. He came down from the cash counter and charged the man
verbally. It was simply a mess inside the bank. Everybody was shouting. At last the
branch manager came to handle the situation. She took the customer involved to his
office with two other senior bank officers and bullied the man thoroughly. The
situation calm down and that man went without withdrawing money. I was astonished
to see the whole situation. I have never faced such event and I think that situation
could be handled in a better way. The number of officer at the cash counter should be
increased and the bank officer should never behave to a customer in that way,
whatever he may did. Bank is an institute for customer care and the interest of the
customer should come first. I think that day the bank manger also did not handle the
situation properly. He could handle it in a more mature way, but it was a unique
experience for me. Seeing this other customers was also telling about their cash
system which is not good. Customers need to wait for long time as there officers are
less. Therefore, they must keep one or two extra officers in the cash department.

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Case 7:
Cheque book being transferred to a wrong customer:
I was enrolled in the Head Office of BRAC bank Ltd. I had to manage the PB
customers. On one occasion a customer named “Mohammad Yakub” with A/C no:
1234 (for example) requested for a cheque book. But the concerned department for
cheque book production did a mistake and produced the cheque book in name of “Md.
Yakub”, another customer, with A/C no: 5678 (for example), of the same branch. The
production department also failed to deliver the cheque book to the customer within
promised deadline. When such an erroneous cheque book was handed over to the
customer, Mr. Mohammad Yakub he found the mistake and was very annoyed. He
called HO corresponding department over telephone and took them to task, and even
threatened saying that he would escalate the issue to higher level management. The
intern who was attending the phone call gave him a patient hearing, and replied “we
are sorry, dear sir, for the unfortunate incident…. it was very unexpected mistake on
our part”. The customer became happy with the straight forward response. After
talking a while with the intern the customer was calmed, he filed a complain. The
intern took initiative to immediately issue a new cheque book and handover it to the
customer.

Case 8:
Resignation of staffs:
It was the middle of my internship period. One day I was in bank at 6 pm. Suddenly I
noticed that the staffs of our branch are moving haphazardly. The reason was a
rumour that a key people of the branch have resigned because not getting promotion
though he deserves it. He was Mr. Wahid Mahmud, who was Relationship Manager
and the Chittagong, Agrabad Branch. He has a very convincing personality. He made
a significant contribution in the promotion of Banani branch earlier and helped the
bank to reach a certain benchmark. For example: NSU is a big client of BRAC bank
Ltd. So, to retain the client, he was used to offer chocolates to NSU students, when
they come for their registration purpose. Considering all these, the resignation of
people like Mr. Wahid Mahmud adversely affected BRAC bank Ltd. So, it was a very
significant incident during my internship time. Other officers were also whispering

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that as he is not here anymore, so they are thinking to leave as well. Therefore BRAC
bank Ltd. should not think only for them but also for the whole unit.

Case 9:
Joining of new branch manager:
When I was enrolled for my internship, my branch manager was Mr. Sabbir Ahmed.
But just before the completion of my internship, a new branch manager came
replacing him. She was Mrs. Ferdousi Begum. To me, she was a person of different
personality. Earlier manager was not dominant at all; maintain good interpersonal
relationship with all employees inside the bank. He introduced a new way of banking
with which the stuffs were not acquainted at all. For example, he redesigned the
interior decoration for the branch. He changed the entire set up of the branch and
rearranged the furniture placement. He used cabinets for the first time instead of
traditional tables for keeping registry books and other documents. Eventually it turned
the branch most spacious than before which helped customers to build a positive
impression about the bank. But the new manager was little aggressive and dominant,
she used to shout on employees at little incidents. Even customers were not at all
satisfied with her behaviour and hot temper. Employees were thinking of a transfer or
even leaving the bank at her disgraceful behaviour.

Case 10:
Joining of new MD and CEO:
Mr. Imran Rahman, MD and CEO of BRAC bank Ltd. with a long vision and high
ambition passed away just before my internship. He developed a development blue-
print covering all the expansion and enhancements of the bank. The plan covered
introducing new branches, ATMs, SME units and services. He was also thinking of
making different department of the bank independent, making the work environment
better, etc. His death was an enormous loss to the bank. Mr. A.E.A. Muhaimen
became the new CEO and MD of the bank. Famous as a cost cutting manager, Mr.
Muhaimen was very rude and stubborn in his behaviour. No line managers or
department’s heads feel comfort to talk with him for his ill behaviours. It’s now a
matter to see where this new CEO and MD can lead BRAC bank Ltd.

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Bibliography:
 Prospectus of BRAC Bank Ltd.
 Annual Report of BRAC Bank Ltd (2005-2006).
 Several Booklets of BRAC Bank Ltd.
 Several Booklets of Premium Banking
 BRAC Bank Website:www.bracbank.com
 Several news letters from BRAC Bank Ltd.
 Conference of BRAC Bank Ltd.
 Books of Financial Management.

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Appendix

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 Sample Customer Survey Questionnaire:

1. Gender: Male Female

2. Age: a.19-28 b. 29-38 c. 39-48 d. 49-58 e. 59 and above
3. Educational qualification:
a. Masters Degree b. Bachelor Degree c. Higher secondary certificate
d. Secondary school certificate
4. Marital Status: Married Single
5. Profession: a. Student b. Employee c. Businessman d. Housewife e. Others
6. Where do you stay?
a. Banani b. Gulshan c. Dhanmondi d. Uttara e. Others ______________
7. For how long you are using the Premium Banking Service of BRAC Bank?
a. Less than 1-month b. 1 to 6 month c. 6 month to 1 year
d. More than 1 year e. More than 2 year
8. Do BRAC Bank PB provides quality services?
a. Yes b. No
9. Do you think All Relationship managers are knowledgeable of their customers and
they are very helpful?
a. Yes b. No
10. Do you think the credit card facility provided for Premium Banking clients is
satisfactory? If not then please specify the problem in the blank space.
a. Very satisfactory b. Neutral c. Not that much satisfactory d. Dissatisfied

_____________________________________________________________________
_____________________________________________________________________
11. How did you find out about this account at first?

a. From RMs of the bank b. From my friend c. Bank’s Brochure

d. Company website e. Other______________________

12. What is the average amount of Bangladeshi Taka you maintain in your
account(s)?
a. 10,000-50,000 b. 50,001-500,000 c. 500,001-5,000,000

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 d. 5,000,001-10,000,000 e. >10,000,000
13. Do you face any difficulties in opening the account or depositing or withdrawing
the cash? Please specify the problem in the blank space. (Example- it is time
consuming or hassles to pay the money)
a. Yes, a lot b. No, not at all c. Yes, sometimes
14. Do you use ATM Card? Yes No
15. To what extent do you have problems with the number of the ATM machines?
Very much 1 2 3 4 5 Not at all
16. How often are you annoyed with the ATM machine services?
Very Often 1 2 3 4 5 Not at all
17. I have signed up for PB services because:
a. PB provides quality services b. it is very much secured

c. Relationship Managers are very helpful d. All of the above

18. Would you recommend PB service to any of your friends?

a. Yes, absolutely b. Maybe c. No, not at all d. Never

19. Please state your satisfaction level regarding the Premium Banking service of
BRAC Bank.
a. Very satisfied b. Satisfied c. Neutral d. Dissatisfied
e. Very dissatisfied

Strongly Disag Strongly

Disagree ree Neutral Agree Agree
1 2 3 4 5

BRAC Bank PB provides quality services.

In any kind of need Premium Banking (PB)

provide quick responses.

A service is quick/fast.

Relationship Managers (RM) are very helpful.

All RM’s are knowledgably on customer.

BRAC Bank PB has fragmented network in their

branches.

All details of customer are documented

Your expectation from PB is matching with you

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BRAC Bank has a good variety of product

Interest rates are reasonable

You like the car loan facility of BRAC bank

BRAC Bank PB client get the best service
regarding loan facilities

BRAC Bank has the maximum type of FDR

“I think the introduction of PB has increased

BRAC Bank’s quality in value added service”

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