Professional Documents
Culture Documents
City Bank
City Bank
INTRODUCTION
1.1 Introduction
Economic history shows that development has started everywhere with the banking system and
its contribution towards financial development of a country is the highest in the initial stage.
Schumpeter (1933) regarded the banking system as one of the two main agents (other being
entrepreneurship) in the whole process of development. Keynes also emphasized the role of
banking services in the process of economic development of a country, while SHE was
addressing the House of Lords regarding International and Monetary System (quoted in Sharma
1985). Moreover Alexander Gerschenkron (1962) in his popularly known Gerschenkrons
Hypothesis explained the banking system as the key role player at certain stage of the
industrialization process.
Modern banking system plays a vital role for a nations economic development. Over the last
few years the banking world has been undergoing a lot of changes due to deregulation,
technological innovations, globalization etc. These changes in the banking system also brought
revolutionary changes in a countrys economy. Present world is changing rapidly to face the
challenge of competitive free market economy. It is well recognized that there is an urgent need
for better, qualified management and better-trained staff in the dynamic global financial market.
Bangladesh is no exceptions of this trend. Banking Sector in Bangladesh is facing challenges
from different angles though its prospect is bright in the future.
The course under B.B.A program designed with an excellent combination of theoretical and
practical aspects. The whole course is divided into eight (8) semesters of 6 months each. After
the completion of 8th semester consisting of theoretical exposure, the students are sent to
different organization to obtain some practical exposure in different sectors which would help
them in taking up more professional courses in M.BA. As a student of B.B.A, I have assigned
to B.B. Avenue branch, The City Bank Ltd. for my internship.
As MY program director directed us to present the report in different way that will be based on
the personal observations from each department. I have described each department I have
worked in by following way:
(1) Understanding:
In this part I have tried to make acquaintance with the departments I have worked of this
branch.
FROM
TO
DEPARTMENT
NUMBER OF
DAYS
General Banking
24-05-06
18-06-06
Credit department
19-06-06
Till now
26
Schedule Source: Suggested by Branch Manager, City Bank Ltd, B. B. Avenue Branch.
(b)
Credit section.
(c)
(ii)
(iii)
Direct observations
(iv)
(v)
MR. Md. Abdul Halim, Senior Vice President & Manager, CBL, BB Avenue Br.
Mr. A.S.M Shokrana, Vice President, PBL, BB Avenue Br.
Mr. Mohammad Mortaja, Senior Executive Officer, Credit Department, CBL,BB
Avenue Br.
Md. Sohel Rana, Officer, Accounts Section.
(ii)
(iii)
(iv)
(v)
(vi)
Websites,
Chapter TWO
moneylenders provide credit services. Small shopkeepers and businessman use informal credit
at high interest rate, traditional Mahajan,s money lending business gradually declined due to
expansion of bank and the micro credit programs of NGOs, Cooperative banks and government
agencies.
six nationalized commercial banks (NCB), one industrial bank (BSB), one agricultural
bank (BKB), and one industrial development financial institution (BSRS) were created
The banks and financial institutions, which originated during the Pakistan period and were
merged, and renamed and functioning after independence of Bangladesh. In the year 1983, the
government allowed private sector to participate in the banking business. The Pubali Bank and
the Uttara Bank were denationalized in 1985, due to non-profitability. This action reduced the
number of NCBS to four. Such restructuring of public sector banks was in order to play their
role in industry, agriculture, exporting, self employment etc.
Foreign banks:
The state bank of India opened one branch July -September 1975. In 1975, the four foreign
banks operating in Bangladesh were: American Express International Banking Corporation,
Grind Lays Bank, The Chartered Bank and the State Bank of India. Now there are more than 15
foreign banks.
The historical process shows the influence of the various social groups in the governance of the
country and the banking systems. During the British regime banking was concentrated only in
the areas of commercial and administrative importance. With the independence of India and
Pakistan, the banking sector had to be reshaped. The government of Pakistan had to take major
initiatives for the growth and extension of banking services to the different sectors of the
economy and also to different regions.
Independence of Bangladesh was yet another major change in the banking sector. Immediately
after independence of Bangladesh, banks started their operations under full government
ownership. Later, some of the banks were denationalized and the government allowed banks to
be established in the private sector. Banking operations have been diversified and a number of
specialized banks were established. Development finance institutions also exist to supplement
the baking sector in an effort to boost the economy; government has been following a pragmatic
policy relating to the banking sector in Bangladesh.
Despite many odds and problems now facing banking sector, it is expected that it would be able
to meet up the challenges ahead, particularly of the nest century.
adequacy ratio of the bank during 1997-2000 as per BIS (Bank for International Settlement)
standards to be followed by banks operating in Bangladesh.
The management of the bank is vested in a 13-member board of directors. That includes the
chairman and a vice-chairman. The managing director is the chief executive. Three deputymanaging directors, three executive vice presidents, fourteen vice presidents, fifty-four assistant
vice presidents and some other employees of different categories assist him. The total number
of employees of the bank stood at 1,845 at the end of business year 2000. That time the bank
had 76 branches throughout the country. Sixty-one of them were urban and 15 were rural. It had
6 regional offices established at the 6 divisional towns/cities.
The bank conducts all types of commercial banking activities. Core businesses of the bank
include deposit mobilization, lending and foreign exchange dealings. At the end of the initial
year of its operations in 1983, the total deposits were Tk 320.2 million, which rose to Tk
11,603.2 million in 2000. Total and net loans and advances of the bank amounted to Tk 9,964.6
million and Tk 7,698.2 million respectively in December 2000. The broad economic sectors in
which the bank provides lending are agriculture (0.80%), term loans to large and medium scale
industries (18%), housing (1.75%), working capital and commercial lending (35%), import
(9.9%), export (10.5%) and others (24.05%).
The quality of the bank's lending assets deteriorated due to huge non-performing loans. The
ratio of its classified loans was 43% in 1997, 40.85% in 1999 and 39.57% in 2000. Total assets
of the bank including off-balance sheet items accounted for Tk 30,806.9 million in 2000, when
its gross earning assets and liquid assets were valued at Tk 14,884.3 million and Tk 6,430.8
million respectively. In 1999, the total foreign exchange business handled by the bank stood at
Tk 9,838.3 million (import 87%). Dealings in foreign remittances were only Tk 815 million
during 1999. Out of its 76 branches, 19 are now authorized to deal in foreign exchange. The
bank has correspondent relationships with 255 bank/bank offices and other financial
institutions abroad.
Total investment of the bank at the close of the year 1999 was Tk 1,492.8 million, of which Tk
1,140 million was in
TREASURY BILL s.
securities. The income on all investments that year was Tk 101.1 million. The bank earned an
operating income of Tk 1,356.5 million and incurred operating expenses of Tk 375.7 million in
business year 2000. Net profit of the bank before deducting tax and provision for classified
10
loans stood at Tk 188.3 million in the same year. After appropriation of operating profit with
accumulated losses of Tk 121.6 million, the bank still suffered a cumulative loss of Tk 66.7
million up to December 2000.
Source: Internet
11
2.4.3 Operation
The City Bank Limited, since its inception is an IT-focused Bank. The bank has by now a
network of 77 branches strategically located in different cities. All the branches are functioning
in computerized environment and integrated through Wide Area Network (WAN) .The
12
branches are full fledged units and can provide all commercial and investment banking service
raging from small and medium enterprises to big business conglomerates and houses.
The Bank always tries to reduce its dependence on interest earnings by giving more emphasis
on the fee based income through introduction of capital market operation and Leasing .The
Capital Market operation includes Portfolio Management, Investors Account, Underwriting,
Mutual Fund Management etc.
The Bank introduced modern system of Leasing Operation as in practice with Banks in all other
countries of the world. The Lease Finance portfolio of the bank is the first of its kind in a
Commercial Bank in Bangladesh.
Entrepreneurship Development Training is arranged to impart operational skill and modern
technique of management to introduce new entrepreneurs in the field of industrialization on the
basis of participatory finance.
City Bank Limited is one of first few Bangladeshi Banks who have become member of SWIFT
(Society for Worldwide Inter-Bank Financial Telecommunication). SWIFT is a member owned
co-operative, which provides a fast and accurate communication network for financial
transactions such as letters of Credit, Fund transfer etc.
Prime Bank Limited is operating branches on both interest based Banking and Islamic Sariah
based Banking. The Islamic Sariah based Banking is completely different From the
conventional one.
The Bank is Maintaining separate set of accounts for Islamic Banking branches according to the
standard adopted by Financial Accounting and Auditing organization for Islamic Financial
Institution.
City Bank Limited will try to achieve excellence in customer service. The customer is most
important for them. Their policy is customer driven. The Bank has introduced Special Savings
Schemes; Special Credit Scheme for the benefit of the low-income group, especially for the self
employment of the educated youth.
13
possible benefits to the customers. There must have the mission as well as vision what should
back every efforts of the organization. as it is said that mission without vision is a daydream
and vision without mission is a nightmare.
Mission:
Vision:
To be the leading bank in the country with best practices and highest social
commitment.
14
Top Management
Executive Level
Management
Mid Level
Management
Junior Level
Management
Chairman
Vice Chairman
Directors
Managing Director
Asstt. Secretary
Deputy Managing Director
Senior Executive Vice President
Executive Vice President
Senior Vice President
Consultant
First Vice President
Vice President
Senior Assistant Vice President
Assistant Vice President
Senior Officer
Management Trainee
Officer
Junior Officer
Assistant Officer
2.4.6.SOWT Analysis
From my practical observation, I get the following Strength opportunity, weakness and threat
(SOWT).
15
Strength:
Concentrated market.
Weakness:
Deposit is lower than advance.
Short time experience of the Bank.
Officer has limited experience and not enough trained.
Long-term credit is not sufficient.
Small market shares in Banking-business.
Opportunities:
Can increase the credit scheme.
Can increase the advertising of the Bank.
Private Banks becomes more reliable to local public.
Govt. has banned some Jatiya Sanchaya patra.
Threat:
o There are many competitors in the market.
o Competitors have more deposit.
o Ruling Government is not conducive in the viewpoint of the Bank.
o Govt. imposes tax and VAT on profile.
o Govt. pressures to reduce interest rate
16
2001
2002
2003
2004
2005
Authorized Capital
Paid-up- Capital
Statutory Reserve
400.00
160.00
160.00
400.00
240.00
173.10
400.00
240.00
213.81
1750.00
480.00
378.42
1750.00
720.00
604.61
Other Reserve
Retained Earnings
Total Shareholders Equity
Deposits
Loans and Advance
Import
Export
Investment
Total Asset
103.12
80.00
503.12
17183.98
12729.22
13503.20
3982.10
1977.95
20726.40
240.60
130.00
783.70
19683.30
13884.90
12262.60
6213.50
2511.40
24481.60
240.60
102.78
797.21
20046.31
14778.55
17292.74
7719.70
3379.26
23698.56
240.60
78.43
1417.47
22236.96
17027.84
17909.94
12198.69
3161.38
26375.56
240.60
33.17
1958.40
30647.83
23326.34
21363.21
18218.97
3648.27
35303.74
Total Income
Total Expense
Profit Before Provision
Total Provision
Profit Before Tax
Provision for Tax
NET Profit After Tax
Return on Equity (%)
Return on Asset
Capital adequacy Ratio
(%)
Credit Deposit Ratio
EPS (TK.)
Book Value Per Share
(TK.)
market
Value
Per
Share(TK.)
No. of employee
Executive
Officers
Staffs
No. of Branches
A/D Branches
No. of Shareholders
1749.07
1341.68
407.39
1840.80
222.59
142.59
80.00
17.27%
0.42%
6.63%
2120.89
1569.66
551.23
485.60
65.63
52.30
13.33
2.07%
0.06%
8.16%
2475.04
1799.17
675.87
472.41
203.46
190.00
13.46
1.70%
0.06%
6.56%
2707.84
1785.79
922.05
99.00
823.05
442.79
380.26
34.34%
1.52%
9.78%
3476.85
2227.99
1248.86
117.93
1130.93
590.00
540.93
32.05%
1.75%
9.63%
74%
50.00
314.45
71%
5.55
326.54
74%
5.61
329.37
77%
79.22
230.70
76%
75.13
272.00
266.80
300.00
227.65
877.75
770.75
1688
141
958
589
76
20
3256
1751
142
1011
598
76
20
3027
1692
164
943
585
77
20
3247
1803
178
1032
593
77
20
3486
1829
203
1022
604
77
20
5678
17
CBL as a first generation bank has strengthened its capital base by raising the authorized capital
to TK. 1750 million and paid up capital to Tk.720 million. The capital adequacy ratio was 9.65
at the end of 2005.
Deposits
The deposit as at 31st December 2005 rose to Tk.30648 million registering a growth of 38%
over preceding year (Tk.22236 million).
Amount
in % of share
million Tk.
1.
2.
3.
4.
5.
5090.48
5820.42
2324.90
12451.65
4960.38
30647.83
16.61
18.99
7.59
40.63
16.18
100%
18
Sector
Agriculture
Amount (in
million TK.)
TK. % of share
171.00
0.73
3542.30
15.19
8739.79
37.47
Export Finance
3762.40
16.13
Import Finance
4094.61
17.55
Housing
224.46
0.96
Others
2791.74
11.97
23326.30
100.00
Total
19
Non-Performing Loan
Non-performing loan dropped to Tk.1332 (5.71% of total loan portfolio) million only from an
amount of Tk.1800 (10.48% of total loan portfolio) million of previous year.
In million Tk.
During 2005 a significant amount of Tk.303 million was recovered from non-performing loan.
20
Import
Import growth in 2005 is19%(Tk.17910 in 2004 to Tk.21363 in 2005).
Export
The bank achieved significant growth (49%) in 2005.
21
Deposit Products
Monthly Benefit Deposit Scheme
Fixed Deposit Scheme
Saving Deposit Account(Three Stage Saving Scheme)
NFCD (Non Resident Foreign Currency Deposit Account)
NITA (Non Resident Investors Taka Account)
Loan Products
Consumers Credit Scheme
Lease Finance
Hire Purchase
Small and Medium Enterprise Credit Scheme
Loan Against Shares and Securities
House Building Financing Scheme
Financing Scheme For Contractors
Computer Software Financing Scheme
City Bank Maser Credit Card
City Bank VISA Credit Card
Working Capital Financing
Import Financing
Export Financing
Industrial Financing
Other Service
22
Consistent with the modern edge and competing in the competitive market, City Bank Limited
has introduced some innovative banking services that are remarkable in a country like
Bangladesh. The services offered by the bank are as follows:
On-line Banking
The bank has set up Wide Area Network (WAN) across the country within its all branches to
provide on-line branch banking facility to tits valued customers. The service named Finacle
Core has opened up several possibilities of improved customer services. Under this facility
client of one branch are able to do banking transaction at any other branch of the bank. The
bank hosted its Web Site (www.citybank.com) to facilitate dissemination of information about
the banking services and facilities of City Bank Limited all over the world.
SWIFT Service
City Bank Limited is one of the first few Bangladeshi Banks to obtain membership of SWIFT
(Society for Worldwide Inter-bank Telecommunication). SWIFT is a members owned
cooperative which provide a first and accurate communication network for financial
transactions such as Letter of Credit, Fund Transfer etc.
%
94.5
99.55
-JUNE)
23
Year
Year
2005
2005
2006(JAN2006(JANJUNE)
JUNE)
%
%
88.57
140.45
74.22
52.88
Year
2005
100
134.14
134.14
2006(JAN-
100
49.11
49.11
JUNE)
Year
2005
2006(JAN
%
10.00
7.5
Year
2005
80
86.36
107.95
2006(JAN
105.68
94.82
89.72
-JUNE)
-JUNE)
24
Year
2001
2002
2003
2004
2005
2006(Jan.- June)
23,777
15,695
14,855
1,013
1,232
118.76 lac
3,266
172
13,353
1,138
2,502
2.30 lac
2001
2005
B.B.Avn. Br.
Nill
Nill
Nill
U.S. $ 27,026.20
: 62
: TK. 4,466,710.00
: TK. 4,466,710.00
: TK. 3,873,335.00
: TK. 1,881,506.88
: TK. 509,300.00
25
768
06
Nill
Nill
2,400,000
2,250,000
-
Chapter THREE
GENERAL BANKING
26
GENERAL BANKING
At first I have been placed in the General Banking Department. General Banking department
performs the majority functions of a bank. It is the core department.
In fact, bank operates with the peoples money. And this process starts with the General
Banking department. The activities of the General Banking Department of CBL are mainly
divided into the following categories:
Account Opening Section,
Local Remittance Section,
Online Branch Banking Section,
One Stop Utility Services Section,
Deposit Schemes Section,
Clearing Section,
Collection Section,
Cash Section,
Accounts Section,
Current Account.
27
Savings Account.
For opening an account, at first the prospective account holder will apply for opening an
account by filling up account opening form. Account opening form consists of the name
of the branch, type of account, name of the applicant(s), present address, permanent
address, passport number (if any), date of birth, nationality, occupation, nominee(s),
special instruction (if any), initial deposit, specimen signature(s) of the applicant(s),
introducers information etc.
manager or
authorized officer.
Signature of the prospective account holder in the account opening form and on the
specimen signature card duly attested by the introducer.
Then the concerned authority will allocate a number for the new account.
The customer than deposit the initial deposit by filling up a deposit slips. Initial
deposit to open a current account in PBL is Tk. 1000.00 and saving account is Tk.
500.00.
After depositing the initial deposit, the account is considered to be opened. CBL maintains all
of its accounts in computer. After depositing the initial deposit, CBL records it in the computer
by giving new account number. Then it issues chequebook requisition slip by the customer.
Then it distributes all relevant papers to respective department.
Joint Account:
If the account is a joint account, then the joint account holder should submit a declaration and
operational instructions of the account along with their signature. The declaration is
28
Any balance to the credit of the account is and shall be owned by us as joint depositors. Any
liability whatsoever incurred in respect of this account shall be joint and several.
(B)
Partnership firm:
The following documents have to be submitted for preparing an account of a partnership firm:
Partnership deed.
(a) If the partnership firm is a registered one, then one copy of registration forms.
(b) If not, then a copy of certificate from the notary public.
(C)
Limited Company:
For the opening of an account of a limited company, following documents have to be submitted:
Certificate of Incorporation of the company for inspection and return along with a
duly certified Photocopy for Banks records.
Certificate from the Registrar of Joint Stock Companies that the company is
entitled to commence business (in case of Public Ltd. Co. for inspection and
return) along with a duly certified Photocopy for Banks records.
(D)
Club/Society:
Following documents have to be obtained in case of the account of the club or society:
29
(E)
Cooperative Society:
(F)
Following documents have to be obtained in case of the account of non-govt. college / school /
madrasha / muktab:
(G)
Trustee Board:
Certified copy of Deed of Trust, up to date list of members of the Trustee Board
and certified copy of the Resolution of Trustee Board to open and operate the
account.
(H)
Minors Account:
The AOF is to be filled in and signed by either the parents or the legal guardian
30
Local remittance is one of the main components of general banking. The activities of local
remittance are --i.
Telegraphic Transfer,
ii.
iii.
Pay order.
iv.
Pay slip.
The applicant fills up the relevant parts of the prescribed application form in triplicate,
duly signed the same and gives it to the GB.
GB will fill up the commission part for banks use and request the applicant to deposit
necessary cash or cheque at the cash booth.
GB will prepare telex in appropriate form, sign it and send it to the telex operator for
transmission of the message.
GB will prepare necessary advice. Debit advice is sent to the client if clients account is
debited for the amount of T.T.
Credit Ticket (second copy of the application form) is used to credit the CBL General
Account.
The first copy of the application form will be treated as Debit Ticket while the second
copy will be treated as Credit Ticket. The third copy will be handed over to the applicant
as customers copy.
Accounting Treatment:
For telegraphic transfer, PBL gives the following entries--Clients Account
Dr.
Cr.
Telex Account
Cr.
31
Commission Account
Cr.
Payment of T.T.
On receipt of T.T. the drawee branch passes payment instructions the following entries if the
T.T. is found to be correct on verification of the Test number
a) City General Account
Dr.
Cr.
Dr.
Cr.
In case the beneficiary does not maintain any account with the drawee branch a pay order will
be issued in favor of the payee and sent to his banker / local address as the case may be.
Every branch maintains a prescribed T.T. Payable Register. All the particulars off T.T.
are to be properly recorded in this register duly authenticated. A separate Type of T.T.
confirmation advice is sent to the drawee branch on the same day. On receipt of T.T.
confirmation advice, the particulars of T.T. are verified with reference to particulars already
recorded in the T.T. payable register.
Get the application form properly filled up and signed by the applicant.
Complete the lower portion of the form for the banks use.
32
If the cheque is presented for of the local draft, the officer should get the cheque
duly passed for payment by the authorized person and record the particulars of local draft
on the back of the cheque.
If the client wants to debit his account for the payment of the draft amount, the
officer should get the account holders signature verified properly, from signature card
on record of the branch and debit clients account for the total amount including
commission.
The first copy of the application form will be treated as Debit Ticket while the
second copy will be treated as Credit Ticket and kept by the GB. The third copy is
handed over to the applicant as customers copy.
The GB Department maintains a prescribed L.D. Issue Register. All the required
particulars of LDs issued by CBL should be entered in that register duly authenticated.
Verify the purchasers signature on the request letter from the signature appearing
on the original application form.
ii)
Immediately issue a stop payment instruction to the drawee branch under advice
of head office and obtain confirmation of non-payment the L.D. in acquisition.
iii)
After the drawee branch has acknowledged the stop payment order and confirmed
that the local draft in acquisition remains unpaid at their end, the issuing branch
should obtain an Indemnity Bond on stamp paper as per prescribed format from
the purchaser duly signed by him. The branch will thereafter write to head office
for their approval to issue a duplicate draft.
iv)
The head office on receipt of the request from the issuing branch will
immediately issue a caution circular to all the branches regarding the lost of the
local draft asking them to record stop payment.
v)
The head office will thereafter issue clearance to the issuing branch for issuing
for issuing a duplicate draft in lieu of original reported lost.
33
vi)
On receipt of the clearance from head office, the issuing branch will issue a
completely fresh draft marking clearly the words duplicate issued in lieu of
original draft no. dated .in bold letters on the top of the
front page of the draft. The printed serial number on the draft should not however
be struck off. Intimation should be given to the drawee branch furnishing full
particulars of the duplicate draft.
vii)
The particulars of the duplicate draft must resemble those of the original draft in
all respects, i.e., all the particulars to the duplicate draft must be identical with
those in the original draft. No further IBCA is to be issued for the duplicate draft.
viii)
The purchaser should submit a written request for cancellation of the L.D. attaching
therewith the original L.D.
The signature of the purchaser will have to be verified from the original application
form.
Cancellation charge is to be recovered from the applicant and only the amount of the
draft less cancellation charge should be refunded. Commission charge, posted charge etc.
recovered for issuing the L.D. should not be refunded.
The original entries are to be reversed giving proper narration. An IBDA for the
cancelled L.D. should be issued on the drawee branch.
Payment of L.D.:
While payment of L.D. CBL performs the following functions
i)
On receipt of Credit Advice (IBCA) from the issuing branch the following entries
are to be passed
City General Account Dr.
DAD Account
Cr.
34
ii)
When L.D. is presented for payment at the paying branch, its details are to be
carefully examined with reference to the following points
a)
b)
Whether the draft is crossed or not. Amount of crossed draft is not paid in
cash to the payee but to be paid to his account with a bank.
c)
d)
Endorsement on the back of the draft must be regular in case the draft is
presented through clearing.
e)
The amount of the draft should not exceed the amount written in red ink at
the top of the draft.
f)
g)
The particulars of the draft i.e. the draft number, date, amount and the
name of the payee should be verified from the L.D. Payable Register.
iii)
In case of payment, the draft should be cancelled with red ink. The date of
payment should be recorded in the L.D. Payable Register.
Accounting Treatment:
While payment:
DAD L.D. Payable Account Dr.
Clients Account
Cr.
The client should submit a written request for canceling the pay order attaching therewith
the original pay order.
The signature of the purchaser will have to be verified from the original application
form.
Managers prior permission is to be obtained before refunding the amount of the pay
order.
Cancellation charge is to be recovered from the applicant and only the amount of the pay
order less cancellation charge should be refunded. Commission recorded for issuing of
the original pay order should not be refunded.
36
Cash withdrawal from his/her account at any branch of the Bank irrespective of location.
Cash deposit in his/her account at any branch of the Bank irrespective of location.
Cash deposit in other's account at any branch of the Bank irrespective of location.
Transfer of money from his/her account with any branch of the Bank.
Any amount can be deposited or transferred under Prime Line. In the system, however, at
present there is a limit for cash withdrawal through bearer or by account holder himself.
37
help investments in the country. The investment in its turn helps industrialization leading
towards creation of wealth of the country. And the wealth finally takes the country on road to
progress and prosperity. As such, savings is considered the very basis of prosperity of the
country. The more the growth of savings, the more will be the prosperity of the nation.
The savings rate in Bangladesh is one of the lowest in the world rate of domestic saving being
17.78 %. In order to improve the savings rate, Financial Institutions responsible for
mobilization of savings should offer attractive Savings Schemes so that the marginal propensity
to save increases. The savings do not, of course, depend only on the quantum of income but
largely depend on the habit of savings of the people.
CBL has formulated the following Savings Schemes:
Monthly Benefit Deposit Scheme,
Fixed Deposit Scheme,
Three Stage Savings Scheme,
Features
Deposit Amount
Tk. 1,00,000 to TK. 1,00,00,000
Period
The scheme is for 2years/ 3 years/ 5 years.
Return
38
Term
Deposit (TK.)
2 years
3 years
5 years
1,00,000
1,00,000
1,00,000
After
Tax
(TK.)
810
810
850
Payment of monthly profit shall start from the subsequent month after a clean minimum
gap of 30 days from date of deposit.
Normally, the deposit will not be encashable before maturity. But if any depositor
intends to withdraw his deposit before maturity, the following rules will apply:
-
If the accounts/ deposits are closed/ encased after one year of its opening, benefit
shall be allowed on the deposits at exiting savings deposits rate.
If the amount of monthly profit already paid exceeds the amount payable at
exiting savings rate, the difference shall be realized from the principal deposit
amount, if and when necessary.
If the client fails to deposit installment for consecutive 3 months, in this case the
scheme will be closed for adjusting loan.
In case of death of a depositor, the A/C shall cease to be operative and the amount
deposited so far shall be paid to the nominee, as mentioned in the account opening form,
and in absence of nominee, to the legal heirs of deceased as per rules in force.
Term:
39
Interest Rate
8%
2 year
9%
3 year
4 year
10%
11%
5 year
6 year
12%
13%
Scope of Services: The scheme is designed to provide all the required services to the customer in making payment
of their following bills on their behalf from the counter of the Bank:
To pay Electricity Bills
To pay Telephone Bills
To pay Gas Bills
To pay WASA Bills
To pay Insurance Premium
To pay House Rent
To collect House Rent
To pay Municipal Taxes
To collect Pension Money
40
Objectives
To help the customers in payment of their different utility Bills in time and thereby
relieve them of their worries and save their valuable time.
To help the senior citizens of the country in collecting their Pension Money every
month.
02.
03.
Particulars
Deposit Rate
Short Term Deposit
a) Below Tk.1.00 Crore
5.00%
b) From Tk. 1.00 Crore but below 6.00%
10.00 Crore
C) Tk 10.00 Crore and above
Saving Deposit
Fixed Deposit (FDR)
a) 1-3 Months
b) 4-11 months
c) 1(One) Year and above
6.50%
6%
Up to 1.00 Crore
11%
12%
13%
41
messengers of other banks would present bank and them at the counter. The whole process of
collection and payment would involve considerable labour, delay, risk and expenditure.
All the labour, Risk, delay and expenditure are substantially reduced, by the representatives of
all the banks meeting at a specified time, for exchanging the instruments and arriving at the net
position regarding receipt or payment. The place where the banks meet and settle their dues is
called the Clearinghouse.
Collecting Banker
ii)
Paying Banker.
Inter-Branch Transfer.
(i)
CBL sends Outward Bills for Collection (OBC) to the concerned paying bank to get Inter Bank
Credit Advice (IBCA) from paying Bank. If the paying bank dishonours the instrument, the
same is returned to principal Branch.
(ii)
Collection Department sends transfer delivery item to other branches of same bank situated
inside Dhaka City. Upon receiving IBCA customers a/c is credited.
43
in passing vouchers or wrong entries or fraud or forgery. This department is called Accounts
Department.
Besides these, the branch has to prepare some internal statements as well as some statutory
statements, which are to be submitted to the Central Bank and the Head Office. This department
prepares all these statements.
Packing and maintains the total debit and total credit vouchers.
Quarterly statement of deposits, loans and advances, profit and loss etc.
Yearly statement of deposits, loans and advances, profit and loss etc.
Statement of Affairs.
44
Cash section is a very sensitive organ of the branch and handle with extra care. Operation of
this section begins at the start of the banking hour. Cash officer begins his/her transaction with
taking money from the vault, known as the opening cash balance. Vault is kept in a muchsecured room. Keys to the room are kept under control of cash officer and branch in charge.
The amount of opening cash balance is entered into a register. After whole days transaction,
the surplus money remain in the cash counter is put back in the vault and known as the closing
balance. Money is received and paid in this section.
At first the depositor fills up the Deposit in Slip. For saving account and current
account same Deposit in Slip is used in this Branch.
After filling the required deposit in slip, depositor deposits the money.
Officers at the cash counter receives the money, count it, enter the amount of money in
the register kept at the counter, seal the deposit in slip and sign on it with date and keep
the banks part of the slip. Other part is given to the depositor.
In this branch, i.e., B.B.A.Branch, two different officers maintain two different books
for entering such entries. One officer and other accounts by another officer maintain all
deposits of saving account.
At the end of the day entries of both of these registers are cross checked with the
register kept at the cash counter to see whether the transactions are correct or not.
45
If the instrument is free of all kind of error the officer will ask the bearer to sign on the back
of it.
He will then put his/her initial beside the bearers signature. S/he will also sign it on its
face; will write down the amount by red pen.
Then the cheque will be sent to the cash counter. At the cash counter bearer will be asked
again to sign on the back of the instrument.
The cash officer will then enter the details of the cheque in his/her register and will pay the
money to the bearer.
At the end of the day these registers will be compared to ensure the correctness of the
entries.
3.10 Conclusion
Bank is the largest organization of mobilizing surplus domestic savings. Attractive Savings
Schemes are offered by CBL such as Contributory Savings Scheme, Monthly Benefit
Deposit Scheme, Special Deposit Scheme, Education Savings Scheme, Fixed Deposit
Scheme, City Bank Money Scheme, City Bank Insured Fixed Deposit Scheme as well as
different accounts to save money. Schemes are designed concentrating in different purposes to
help the fixed income group people to help in need. Bank-Officials are also whole-hearted and
dedicated to serve their customer with utmost care.
46
Chapter FOUR
47
48
receives money and can readily spend almost everywhere. Thus it creates credit. Second, the
entire systems of banks also create money as the deposits generated by lending flow from bank
to bank. By law, each bank must set aside a fractional reserve behind each deposit it receives and
the remaining excess can be loaned out. No single bank can lend out more than its excess
reserves, the entire banking system can create a multiple volume of deposit money through credit
creation.
Assets are built based on customers deposit, which should not exceed 90% of customers
based deposit.
Diversification from all angel viz. type of credit, geographical location, size of credit,
sectors and sub-sectors etc.
Credit operations are carried out in branch through branch credit committee as per
authority delegated to head of branch and through Head Office Credit Committee in
respect of credit sanction authority delegated to the CEO.
49
Sector
As on 31.12.05
Amount (in
TK. % of share
million TK.)
1
2
Agriculture
L & M Industry (Term Loan)
171.00
3542.30
0.73
15.19
3
4
5
6
8739.79
3762.40
4094.61
224.46
37.47
16.13
17.55
0.96
Others
2791.74
11.97
23326.30
100.00
Total
1. Funded Facilities:
Funded facilities can also be divided into the following categories:
Loans:
i)
Continuous Loans
ii)
Demand Loans.
iii)
iv)
v)
Overdrafts:
Against hypothecation of goods/stock
Against pledge of goods/stock
50
2. Non-Funded Facilities:
Secured Advances:
A. The following type of secured advances are allowed against tangible securities subject to
margin restrictions:
Loan (General)
House Building Loan
Other Loans to Staff
Cash Credit (Hypothecation)
Cash Credit (Pledge)
Hire-Purchase
Lease Financing
Consumers Credit
SOD (FO)
SOD (WO)
SOD (OT)
SOD (EXPORT)
SOD (IMPORT)
PAD (Payment Against Documents)
51
2.
Unsecured Advances:
An unsecured or clean Advance is one, which is granted to a constituent without obtaining any
security. In such case only charge documents are held an unsecured facility may be allowed in
exceptional circumstances, only for a short period, with definite repayment arrangement, subject
to restrictions imposed by Bangladesh Bank or any other competent authority, with prior
approval of Head Office, to a customer on the basis of his personal credit worthiness, standing
and reliability.
A. Unsecured Advances include:
i)
i)
Clean Loans.
B.
I. A customer should not ordinarily be permitted to overdraw his account without security.
However, an unsecured facility may be allowed in exceptional circumstances, only for a
short period, with definite repayment arrangement, subject to restrictions imposed by
Bangladesh Bank or any other competent authority, with prior approval of Head Office,
to a customer on the basis of his personal credit worthiness, standing and reliability.
II. It shall not be granted unless the Sanctioning Authority has full confidence in the ability
and reputation of the customer to repay it, on demand, or at its maturity if it is a loan.
Definite arrangements for repayment, whether by installments or otherwise, must, as a
rule, be made.
(Local Office) has the discretionary power to sanction loan (SOD) up to Tk.25 lac against
financial obligations by informing head office. But in that case, the branch manager has to give
attention on the following matters:
a) The interest of the loan must not be less than 14%, and
b) The borrower must maintain 10% margin.
Except this case, the branch manager has to send a proposal to the head office. It Is fall under
the delegation of Managing Director (MD), the MD approves the loan. If it is again beyond the
delegation of MD, head office will prepare a proposal and submit it before the executive
committee of the Board. The proposal has to be approved by the executive committee (EC).
After getting the proposal approved head office issue a sanction advice. According to that
sanction advice, at the branch the following activities are done:
1.
2. After the sanction advice, bank will collect necessary documents (charge
documents).
3. After receiving all the documents, the bank will disburse the loan to the borrowers.
For withdrawing the loan amount, customer creates a current account and the loan
amount is transferred to this account.
Are loan terms, or in other words, loan agreements properly structured and documented?
Has the bank been able to perfect its claim on the assets or securities?
If a banker handling a credit can find the answers to the above three basic questions in a proper
fashion lending operation carried out by him based on the same is expected to be sound. To
answer the question as to whether the borrower is credit worthy a banker is to have clear idea
about the following Cs concerning the borrowers.
i. Character
54
ii. Capacity
iii. Cash Flow
iv. Collateral
v. Condition
vi. Control
The 6Cs reflect the following points, which should be kept in mind for sound
lending:
Purpose
Safety
Security
Liquidity
Supervision
National/Social interest
It is to be always remembered that the Bank is the custodian of public money and as such we
must be judicious, careful and selective while lending out the depositors money to ensure
timely recovery. The deciding factors for recovery of loans are selection of right type of
borrowers, end-use of credits and effective follow-up and proper supervision.
4.7 Securities:
To make the loan secured, charging sufficient security on the credit facilities is very important.
The banker cannot afford to take the risk of non-recovery of the money lent. CBL charges the
following two types of security, Primary security: These are the security taken by the ownership of the items for which
bank provides the facility.
55
Collateral security: Collateral securities refer to the securities deposited by the third party
to secure the advance for the borrower in narrow sense. In wider sense, it denotes any type of
security on which the bank has a personal right of action on the debtor in respect of the advance.
4.8 Documentation:
Documentation can be described as the process or technique of obtaining the relevant
documents. In spite of the fact that banker lends credit to a borrower after inquiring about the
character, capacity and capital of the borrower, he must obtain proper documents executed from
the borrower to protect him against wilful defaults. Moreover, when money is lent against some
56
security of some assets, the document must be executed in order to give the banker a legal and
binding charge against those assets. Documents contain the precise terms of granting loans and
they serve as important evidence in the law courts if the circumstances so desire. Thats why all
approval procedure and proper documentation shall be completed prior to the disbursement of
the facilities.
ii.
iii.
iv.
57
By this letter, the borrower agrees that he will be liable to bank for payment of the promissory
note with interest in respect of all present and future indebtedness liabilities secured thereby
which promissory note is to remain in force with all relative securities, agreements and
obligations.
Joint promissory note:
This promissory note is given to the bank by the borrower if the borrowers are more than one
person.
Single promissory note:
The borrower to the bank gives this promissory note if the borrower is a single person.
Letter of undertaking
This document is given to the banker by the borrower acknowledging the right to cancel the
facility at any time with or without intimation to the borrower.
Loan disbursement letter:
By this letter, the borrower request to disburse the loan sanctioned in his favor by the bank. All
the persons, in whose names the account is opened, should sign the letter.
Charge over bonds or certificate of shares etc.:
It is a document given by the borrower to the banker declaring that the stocks, shares,
debentures, securities and investments which are now deposited to the bank and which may from
time to time be deposited by the borrower shall stand charged and hypothecated to bank as
security for the payment to bank on demand of the balance of the loan amount and of any other
indebtedness and liability to the bank of any kind whether mature or accruing and whether
incurred alone or jointly with others and whether as principal or surety including all interest
document, commission, expenses, charges and costs incurred by the bank in relation any such
indebtedness or liability.
Letter of lien against fixed deposit receipt:
By this letter, the borrower gives the right to the bank to hold the Fixed Deposit Receipt (FDR)
if the borrower fails to repay or adjust the loan on demand or discharge the liabilities to bank. In
this letter, FDR number, issuing branch, name of the favoring person and amount are written.
Letter of authority to encash FDR:
By this letter, the borrower gives the right to bank to encash the FDR in case of need. Here the
amount and address of the bank of issue and the signature of the holders are given.
Memorandum of deposit of title deeds:
58
It is a deed that is necessary in case of mortgage by deposit of title deed or equitable mortgage.
Here the mortgagor agrees that he has deposited necessary documents of the property to the
bank.
Hypothecation of goods to secured a demand cash credit or overdraft or loan account:
Here the amount of loan, interest, and the name of the borrowers are written. Here the bank and
the borrowers agree on the following terms:
Security
Balance due to the bank
Borrowers not to the encumber or parts of the goods
Sale
Inspection
Insurance
Margin
Interest rate
Repayment
Sale of goods
Deficiency
Surplus
Statement of account
Continuing security
Title
Saving
Change of borrowers and
Notices.
Guarantee by third party:
Sometimes third party guarantee is needed for allowing loan. Here third party gives the
guarantee that of the principal debtor fails to repay the loan, and then the guarantor will be
bound to repay the loan to bank.
Hypothecation of vehicle:
This document is necessary in case of transport loan. Here the borrower hypothecated the
vehicle to the bank. In case of failure of repay the loan, bank will sell the vehicle to collect the
money.
59
b.
Letter of arrangement.
c.
Letter of disbursement.
d.
e.
Letter of pledge.
f.
Letter of hypothecation.
g.
Letter of lien and ownership / share transfer form (in case of advance against share).
h.
i.
j.
k.
l.
Copy of sanction letter mentioning details of terms and condition duly acknowledge by
the borrower
m.
Trust receipt.
2. Overdraft:
a.
D P Note.
b.
Letter of partnership.
c.
Letter of arrangement.
d.
Letter of continuity.
e.
Letter of lien.
f.
Letter of lien and ownership /share transfer form (in case of advance against share).
g.
h.
3. Cash Credit:
a.
D P Note.
b.
c.
Letter of arrangement.
d.
Letter of continuity
60
e.
f.
g.
4. Bills purchased:
a.
D P Note.
b.
c.
Letter of arrangement.
d.
e.
To sell our services to a wide range of customers and increases our CCS portfolio.
a. The client will submit crossed cheque in advance for all the stipulated instalments in favour
of the bank towards repayment of loan including interest.
61
Particulars
For Employee of govt. semi-govt.& corporate organizations.
For Businessmen and employees of Non Corporate Private
Organizations.
Personal Guarantee will be waived.
Instruments
Bank
Guarantee
Insurance
Guarantee
Ownership of
vehicles
Insurance for
Vehicle
Corporate
Insurance companies.
For corporate arrangement with Head Office approval.
Guarantee
Charge Documents:
Letter of declaration
Letter of Hypothecation
Letter of Guarantee
Letter of Authority
62
Continuous
Loans:
For
Small
Enterprise
Financing(SEF),
Consumer
Loans for Professionals to Set Up Business (LP), Others(other than SME & CF)
vi)
vii)
The loans are allowed to individual/firm/industries for a specific purpose but for a definite
period and generally repayable by installments fall under this head. This type of lending are
mainly allowed to accommodate financing under the categories (i) Large & Medium Scale
Industry and (ii) Small & Cottage Industry. Very often term financing for (1) Agriculture (ii)
Others.
63
Objectives
City Bank Ltd. has introduced the lease finance with the following objectives:
To assist the genuine and capable entrepreneurs for acquiring
machinery, equipments,
medical instruments, automobiles etc. The customers are entitled to decide the specification,
price and model of the lease item/ equipment. Bank will purchase the item (s) in accordance
with the specifications given by the clients.
Security
The entrepreneur will be required to provide the following securities:
1.The lease items will remain in the name of the Bank i.e. Bank will be the sole owner of
the leased items.
2.Collateral securities having liquidation value covering at least 100% of the amount of
finance.
3.Deposit of Listed Shares, National Savings certificates, ICB unit certificates,
Assignment of Life Insurance Policies, Bank Guarantee, and Insurance Guarantee etc. will also
be acceptable as collateral securities.
4.In case of existing industrial units requiring BMRE, change may be created the existing
Fixed Assets as collateral securities for the finances. In case of existing Automobile enterprise,
creation of charge on the existing vehicles will also be acceptable as collateral securities.
5.
64
In case of default in payment of lease rental for consecutive 2 (two) months, the
Bank will take over the lease items without giving any prior notice.
will be liable for the loss, if any, caused to the Bank for such Premature taking over.
The Bank will exercise close and intensive supervision of such project. An officer
of the Bank will be engaged separately for supervision of such projects to ensure proper
utilization of the lease items and time repayment of the monthly rentals.
Transport Leasing:
Transport is one of the most widely traded lease items in the developed as well as developing
countries of the world. The reasons behind success of transport leasing in many countries could
by attributed to tax benefit, efficiency in found management and above all to the fact that user
could exclusively use the leased transport by paying reasonable rental.
The major issues of transport leasing are detailed below:
1. Selection of Vehicle
The customer has the right to decide the brand of vehicle, negotiate the price with the
manufacturers of dealers, and arrange after sales services with the supplier.
2. Acquisition Cost
The acquisition cost shall be the actual purchase price after bargaining and all other incidental
expenses incurred by the Bank including financial expenses.
3. Lease Term
In case of Transport leasing, the term shall be maximum 4 (four) years starting from the date of
execution. But when the lease is cancelled for any reason the lessee will have to return the
vehicle to the Bank together with the stipulated loss value mentioned in the agreement.
4. Lease Rental
Lease rentals calculated on the basis of acquisition cost and lease term shall be paid monthly.
5. Insurance
The vehicle shall be covered by Insurance throughout the lease term with the coverage decided
by the Bank. The lessee shall pay the premium.
6. Repair & Maintenance
The lessee shall be obliged to maintain the vehicle for ensuring its normal operation and shall
be solely responsible for loss/ damage as long as it is in his possession. Accordingly, repairing
and maintenance cost for normal operation during the lease period shall be borne by the lessee.
65
7. Registration
The lessee will arrange the registration of the vehicle in the name of the Bank at his own cost and
also pay annual taxes and fees payable to the concerned authority. In case of his failure, Bank will
do it and recover the cost from him.
To Provide credit Facilities to the Small and Medium size entrepreneurs in urban and sub-urban
areas.
Securities
a) Registered mortgage of loan and building (if available).
b) Mortgage / Assignment of possession right.
c) Assignment of security money, advance rent,
if any.
d) Assignment of trade receivable not older than 90 days.
e) Hypothecation of machineries, equipment, vehicles, stock-in-trade, raw materials,
work-in-process and finished good.
f) Personal Guarantee from person acceptable to the bank.
g) Post dated cheque.
h) Lien on deposits/saving certificates/financial certificates.
i) Any other securities to be deemed suitable by the bank depending on the situation like
insurance guarantee, assignment of contract, security money etc.
66
Period of Loan:
a) In case of continuous loan: 01(one) year.
b) In case of Term Loan: 5(five) years or above.
Mode of Repayment:
i) In case of continuous loan credit turnover in the account must be equal to the limit in a quarter
and full adjustment within the validity period.
ii) In case of term loan, the loan should be repaid by monthly instalments through post-date
cheques as per schedule.
iii) Sale proceed should be deposited in the account regularly.
Bid bond: This guarantee is given to the business people for the purpose of
participating in the tender.
ii.
iii.
The procedure of each guarantee is same. For issuing bank guarantee, customers have to apply to
CBL in their own pad. Then bank issue guarantee on judicial stamp. But the conditions for
issuing bank guarantee are that --1. Customers must maintain a current account.
67
Cr.
Bankers liability becomes credit because the guarantee becomes the liability of the bank. If the
bank pays the guaranteed amount to the beneficiary, then CBL reverses the entry and collects
money from the customer and issues the bank draft. But sometimes, while the guarantee remains
unused, customer gives another written in his own pad. Then again bank reverse the previous
entry. CBL also issue revolving bank guarantee.
Particulars
Term Loan (Project Loan)
Working Capital Funding
Pre-Shipment Export Credit (Packing Credit)
Trade Finance (Cash Credit, Hire Purchase, TR Loan,
5
6
IBP etc)
Small/Cottage and SME (Term Loan)
Other Special Program (Other than Commercial)
Lending Rate
14.00% to 16.00%
16.00%
7.00%
16.00%
16.00% to 18.00%
16.00%
68
Rate
14.00% to 16.00%
Classified (CL)
Unclassified (UC)
Classification
Status
Standard
Demand
Loan
0 to 2 months
Length of overdue
Rate of
Continuous Term Loan Term Loan Provision
Loan
(Below 5 Yr) (Above 5 Yr)
0 to 2
0 to 2 months
0 to 2
1%
Special
3 months or
months
3 months or
3 months or
months
3 months
Mention
above
but
above but
above but
or above
Account
below
below 6
below 6
but below
(SMA)
Substandard
months
6 months or
months
6 months
months
6 months or
12 months
12 months
(SS)
above
but
and above
above but
or above
below
but below 9
below 12
but below
Doubtful
months
9 months or
months
9 months
months
12 months or
18 months
18 months
(DF)
above
but
and above
above but
or above
below
12
but below
below 18
but below
months
Bad & Loss 12 months or
12 months
12 months
months
18 months or
24 months
24 months
(BL)
and above
above
or above
above
5%
20%
50%
100%
69
To issue legal notice for selling the hypothecated goods (in case of transport loan,
cash credit-hypo).
4.14 Conclusion
Credit Management policies and techniques used in CBL at present is comparable to
international standards. The officials follow the policy very strictly. They are choosy and
conservative in sanctioning loan. The proposal is thoroughly scrutinized by the loan sanctioning
authority. The total function of the credit division is monitored periodically. The banks
classified loan to the total Advance is very low. Management and others related to City Bank are
trying to formulate new services and products.
Chapter Five
70
PROBLEMS,
RECOMMENDATION &
CONCLUSION
Problems
City Bank Ltd. is one of the most potential Banks in the banking sector. It has a large portfolio
with huge assets to meet up its liabilities and the management of this bank is equipped with the
expert bankers and managers in all level of management. So it is not an easy job to find out the
drawbacks of this branch. According to my observation and study the following limitations are
prevailing:
71
There is lack of division of labour in the branch. Therefore every body has to handle every type
of banking services. This decreases the level of performance of the personnel, though it reduces
monotonousness. But lack of division of labour hampers the discipline of working environment.
So customers are to wait for some time for the desired service, which is contrary to the Bakings
objective.
Insufficient Manpower:
The number of human resources in import section and in clearing section is really insufficient to
give services to huge number of customers. So, number of staff should be increased in those
sections.
72
Sometimes Communication System remains out of order and it is also true for the photocopiers.
Less attention is given on proper maintenance of phone, computer, fax machine and
photocopier.
Recommendation
It is a large organization and banking is a complex and comprehensive task. So it is difficult for
me, by my little knowledge, to recommend to solve the problems. But as an eyewitness of some
problems I am just giving some instructions, which may be followed.
So for the improvement of the service the following measures may be taken:
73
Without proper knowledge in these subjects, efficiency cannot be optimized. Bank can arrange
training program on these subjects.
Ensure
Proper
Communication
System
and
Maintenance
of
Machineries:
Sometimes Communication System remains out of order and it is also true for the photocopiers.
Attention should be given on proper maintenance of phone, computer, fax machine and
photocopier.
Offer Some Loan and Deposit Scheme Exclusively for The Premium
Customers:
All the lending and savings packages offered to the Premium customers are same as offered to
the general customers, excepting the waiver of service charges for Premium Ones. City Bank
Limited should try to introduce more attractive lending and savings scheme to its Premium
customers to create more business for the Bank. The Bank can pay more attention to this
segment of customers, as it is the most solvent group from which income can be generated if the
package is designed properly.
74
Premium Customer should be offered occasional gifts and discounts, which can make the
Premium Service more attractive and keep consumer delight. The interest rates on several loan
and deposit schemes should be differentiated for the Premium customers.
Conclusion
Notwithstanding some limitations The City Bank Ltd. is doing better and holding a good
percentages of market share in banking sector. CBL, the first generation bank in Bangladesh
came into being in 1983 under the entrepreneurship of 12 prominent businessmen in the
country. Established with the objective of bringing about a qualitative change in the sphere of
banking and financial management, the bank today serves its customers spread across 77
branches within Bangladesh and 300 overseas connections.
CBL provides services tailored to the specific needs of the customers in the area of trade,
comers and industry, besides the domestic network. While services like Credit Cards, ATMs
and SWIFT payment systems are already in place, the bank plans to introduce Real Time
Online Integrated Banking System with all modern delivery channels in the future.
CBL has earned recognition at the national and international level. It was one of the 12 banks in
Bangladesh to be evaluated by ASIA WEEK for Asset, Deposit and Profit and was ranked
among the top 500 banks in Asia. Besides, the bank also received the Top Ten Company
awarded from the Prime Minister of The Peoples Republic of Bangladesh for the period 199293. So, if the Bank can remove all of its present problems, it will be able to reach to its mission
& vision.
Bibliography:
Joel Bessis (2001) Risk Management in Banking, 3 rd Edition, New York: John
Wiley & Sons Ins.
Peter S. Rose and Sylvia Conway Hudgins (2003), Bank Management &
Financial Services, 5th Edition, New York: McGraw-Hill.
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