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At the inception of preparing this report, I would like to express gratitude to the Almighty
Allah
for special blessings in completing it. There is an English proverb Two heads are better
than
one. So, no one can obtain a noble objective alone. This project is an accumulation of
some
peoples endeavor. For this, I am indebted to a number of people who helped me to
prepare this
and for their kind advices, suggestions, directions, and cooperation and proper
guidelines for
this.
Firstly, I would like to thanks to the Internal Internship Supervisor, Lecturer .,
Depertment of Business Administration, .. who has guided me from the very
beginning of
my internship program and other teachers of the Department for providing me the
opportunity to
undergo the internship program.
Finally, sincere thanks again to my internal supervisor Md.. , Lecturer , Depertment of
Business Administration, Dhaka for his appropriate suggestions, moral support and
invaluable
co-operation from time to time in completing my project paper during the internship
period.
Page 3 of 85
Executive summary
Now the banks constitute the core of the countrys organized financial system in
Bangladesh.
Banks are now-a-days the most trusted financial organizations to the people all over the
world and they satisfied their customer by offering Different banking services. Ensuring
the
maximum level of customer satisfaction is an aim for each financial institution. As a
result the
customer expectations about the service quality of Agrani Bank always remain medium.
I got
the opportunity of getting important information from the employees of this bank that
help me to
prepare this project paper.
Agrani Bank Limited, a leading commercial bank with 867 outlets strategically located in
almost
all the commercial areas throughout Bangladesh, overseas Exchange Houses and
hundreds of
overseas Correspondents, came into being as a Public Limited Company on May 17,
2007 with
a view to take over the business, assets, liabilities, rights and obligations of the Agrani
Bank
Table of Content
Chapter Title Page No
1 Introduction 1
1.1 Introduction of the Topic 2
1.2 Objectives of the Study 3
1.3 Scope of the Study 4
1.4 Methodology of the Study 5
1.4.1 Type of Research 5
1.4.2 Questionnaire Preparation 5
1.4.3 Target Group 5
1.4.4 Sources of Information 6
1.1.5 Data Collection Instrument 7
1.1.6 Method and Size 7
1.4.7 Data Analysis and Findings 7
1.5 Limitation of the Report 8
2 Customer Service 9
2.1 Satisfaction 10
2.2 Customer Satisfaction 10
2.3 Need to Measure Customer Satisfaction 11
2.4 Benefit of Customer Satisfaction 12
Chapter -1
Introduction
1.1 Introduction of the topic
Generally by the word Bank we can easily understand that the financial institution
deals with
money. But there are different types of banks like; Central Bank, Commercial Banks,
Savings
Banks, Investment Banks, Industrial Banks, Cooperative Banks etc. But when we use
the term
Bank without any prefix, or qualification it refers to the Commercial Banks. A
commercial
bank is a type of financial intermediary and a type of bank. Commercial banking is also
known
as business banking. It is a bank that provides checking accounts, savings accounts,
and money
market accounts and that accepts time deposits. Traditionally, large commercial banks
also
underwrite bonds, and make markets in currency, interest rates, and credit-related
securities,
but today large commercial banks usually have an investment bank arm that is involved
in the
mentioned activities.
Banking sector is expending its hand in different events everyday. At the same time the
banking
process is becoming faster, easier and the banking arena becoming wider. As the
demand for the
better service increase day by day, they are coming with different innovative ideas and
products.
In order to survive in the competitive field of the banking sector, all banking organization
looking for better service opportunities to provide their fellow clients.
Page 9 of 85
technique during the survey of these project where customers were given copies of the
questionnaire and were asked to fill them. I gave continuous support to the customers
for any
problems that they faced while filling up questionnaire so that the validity of the
questionnaire
increases. As the simple random sampling is easily understood and results are
assessable it is
best suited for my study.
2. Size
In this research phase I selected a group of 100 people
Chapter -2
Customer Service
2.0 Customer Service
Customer Service is the set of behavior that a business undertakes during its interaction
with
its customers. It can also refer to a specific person or desk which is set up to provide
general
assistance to customers.
2.1 Satisfaction
Definition 1: Satisfaction means the contentment one feels when one has fulfilled a
desire, need
or expectations.
Definition 2: Customer level of approval when comparing a product perceived
performance
with his or her expectation. Also could refer to discharge, extinguishment, or retirement
of an
obligation to the acceptance of the obligator, or fulfillment of a claim. While satisfaction
is
sometimes equated with performance, it implies compensation substitute where as
performance
denotes doing what was actually promised.
Collection Experience
Communication quality and information for collection
Conduct and communication of collection staff
Channel and Ease of giving payments.
specific attributes of the service itself. As shown below in Figure 1, service quality is a
reflection
of the customers perception of reliability, assurance, responsiveness, empathy and
tangibles.
Whereas customer satisfaction is more inclusive and perceived according to service
quality,
product quality, price, situational factors and personal factors. (Zeithaml, Bitner &
Gremler,
2009, 103.)
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Figure: Service Quality and satisfaction
Situational
Factors
Product
Quality
Service
Quality
Customer
Loyalty
Customer
Satisfaction
Price Personal
Factors
Tangibles: Representing the Service Physically
Tangibles are defined as the appearance of physical facilities, equipment, personnel
and
communications materials. Customers, particularly new customers, use these physical
representations or images to assess quality. Service companies can make good use of
tangible
factors to improve their image, provide continuity, and indicate quality to customers, or
even
combine them with another element to create a service quality strategy. (Zeithaml,
Bitner &
Gremler 2009, 115)
Reliability: Delivering on Promises
Reliability is defined as the ability to perform the promised service dependably and
accurately.
More specifically, it means that the company deliverers service provision, problem
resolution,
and pricing according to their promises. In this way, firms can keep their customers loyal
to
them. (Zeithaml, Bitner & Gremler 2009, 113.)
Responsiveness: Being Willing to Help
Responsiveness is the willingness to help customers and to provide prompt service.
The focus
is weighted on how quickly and attentively companies are able to deal with customer
requests,
questions, complaints, and problems. Companies must have customers point of view to
deliver
service and handle requests in order to excel on this dimension. (Zeithaml, Bitner &
Gremler
2009, 114.)
Assurance: Inspiring Trust and Confidence
Assurance is the knowledge and courtesy of employees and their ability to convey trust and
confidence.
For high-risk service such as banking, insurance, medical, brokerage, and legal services, this
aspect tends
to be particularly significant. Companies need to gain trust and confidence in order to create
trusting
relationships with their customers. (Zeithaml, Bitner & Gremler 2009, 114.)
Chapter -3
Industry Profile
and commerce. Now-a-days, banks not only act as custodian of public money but also
are
indispensable as vital agent for maintenance of sound financial position of a country.
Nationalized Commercial Banks (NCBs) were established in Bangladesh in 1972
through
stiff competition and advancement of technology, the services provided by banks have
become
more easy and convenient. The pastdays are witness to an hour wait before
withdrawing cash
from accounts or a cheque from north of the country being cleared in one month in the
south.
This section of banking deals with the latest discovery in the banking instruments along
with the
polished version of their old systems.
large hotels and restaurants. In 1997 the bank decided to launch full-scale card
operation and
very realistically brought a wide range of people under its service system. It is now
giving a wide
range of card services through multifarious quality facilities.
Credit cards are financial instruments, which can be used more than once to borrow
money or
buy products and services on credit. Basically banks, retail stores and other businesses
issue
these.
Given the competitive market, banking will (and to a great extent already has) become a
process of choice and convenience. The future of banking would be in terms of
integration.
This is already becoming a reality with new-age banks such as Banking, Mobail Banking
etc.
Technology will prove to be the differentiator in the short-term but the dynamic
environment
will soon lead to its saturation and what will ultimately be the key to success will be a
better
relationship management.
The future of banking will undoubtedly rest on risk management dynamics. Only those
banks
that have efficient risk management system will survive in the market in the long run.
The
effective management of credit risk is a critical component of comprehensive risk
management
essential for long-term success of a banking institution.
Although capital serves the purpose of meeting unexpected losses, capital is not a
substitute for
inadequate decontrol or risk management systems. Coming years will witness banks
striving to
create sound internal control or risk management processes. With the focus on
regulation and
risk management in the Basel II framework gaining prominence, the post-Basel II era
will belong
to the banks that manage their risks effectively. The banks with proper risk management
systems
would not only gain competitive advantage by way of lower regulatory capital charge,
but would
also add value to the shareholders and other stakeholders by properly pricing their
services,
adequate provisioning and maintaining a robust financial structure.
The future belongs to bigger banks alone, as well as to those which have minimized
their risks
considerably.
Page 30 of 85
Chapter -4
in almost all the commercial areas throughout Bangladesh, overseas Exchange Houses
and
hundreds of overseas Correspondents, came into being as a Public Limited Company
on May
17, 2007 with a view to take over the business, assets, liabilities, rights and obligations
of the
Agrani Bank which emerged as a nationalized commercial bank in 1972 immediately
after the
emergence of Bangladesh as an independent state. Agrani Bank Limited started
functioning as
a going concern basis through a Vendors Agreement signed between the ministry of
finance,
Government of the People's Republic of Bangladesh on behalf of the former Agrani
Bank and
the Board of Directors of Agrani Bank Limited on November 15, 2007 with retrospective
effect
from 01 July, 2007.
Agrani Bank Limited is governed by a Board of Directors consisting of 13(thirteen)
members
headed by a chairman. The Bank is headed by the Managing Director & Chief Executive
Officer;
Managing Director is assisted by Deputy Managing Directors and General Managers.
The bank
has 7 Circle offices, 30 Divisions in head office, 52 zonal offices and 867 branches
including
10 corporate and 40 AD( authorized dealer) branches. The corporate and AD branches
are
authorized to deal in Foreign exchange business.
The authorized capital of the Bank is Tk. 800 crore.
The principal activities of the Bank are providing all kinds of commercial banking
services to its
customers and the principal activities of its subsidiaries are to carry on the remittance
business
and to undertake and participate in any or all transactions, and operations commonly
carried or
undertaken by remittance and exchange houses.
The Bank also started its Merchant Banking operations at Head Office level from
September 03,
2009 vide registration certificate no. AMB-34/2009 dated March 23, 2009 under
Securities and
Exchange Commission Act, 1993 and Securities and Exchange Commission Rules,
1996.
Agrani Bank Ltd. with its wide-ranging branch network and skilled personnel provides
prompt
Company Mission:
To become a leading bank of Bangladesh.
Operating at international level of efficiency, quality and customer service.
Company Vision:
We operate ethically and fairly within the stringent framework set by our regulators. We
fuse
ideas and lessons from best practice to explore new avenues to become stronger, more
efficient
and competitive. We apply information and communication technology for the benefit of
our
customer and employees. We invest to strengthen the future of the bank.
Principal Officer
(Chittagong Circle)
Officers/Officers Cash
(Chittagong Circle)
Previously, most money transfers were processed manually across Agrani Banks
remittance centres due to which it would take up to four days for beneficiaries to receive
funds. Agrani Bank wanted to offer their customers popular same day services such as
spot cash within minutes.
Agrani Bank wanted to be able to communicate and collaborate information
accurately,
rapidly and reliably among their 867 branches. They wanted to ensure that the right
information is delivered to the right branch at the right time using advanced auto-routing
features.
Some Agrani Bank branches could expect up to 2,000 customers on certain days,
making
it very difficult for their staff to serve them. Agrani Bank wanted to empower their staff
to help customers as effectively as possible.
Agrani Bank wanted to have a sophisticated money transfer management system that
could be easily used by their staff. They wanted the system to be user-friendly so staff
could rapidly learn how to use it, which in turn could save them time and cost.
Credit Rating Information and Services Limited (CRISL) assigns AAA (Triple A) rating
to Agrani Bank in the long run and ST-1 in the short term. The above has been done in
consideration of the guarantee of the Government of the Peoples Republic of
Bangladesh while
setting up Agrani Bank under the Presidential Order Number 26 of 1972 by assuming all
assets
and liabilities of some banks operating in former East Pakistan. CRISL, being a local
rating
agency, always considers the Government of the Peoples Republic of Bangladesh as
the highest
risk free entity. Financial Institutions rated in this category are adjudged to be of best
quality,
offer highest safety and have the highest credit quality. Changing economic
circumstances are
unlikely to have any serious impact on the category of banks. The short term rating
indicates
highest certainty of timely payment. Safety is almost like risk free Government shortterm
obligations.
Credit rating by CRISL
particular
Long
term
Short
term
Entity Rating as Government
Guaranteed Bank
AAA ST-1
Entity Rating as Commercial
Bank-2009
A ST-2
Outlook Stable
Date of rating declaration 06/09/2010
Page 38 of 85
Chapter -5
size locker
b) Yearly TK.1200/= for
medium size locker
c) Yearly TK.1800/= for big
size locker
who accumulate cash as sales proceeds in the afternoon when counters of Bank
branches usually
remain closed.
We shall render our service to help the capital market to increase the supply of
securities. Being
a Manager to issue we shall provide assistance to the Private Limited Companies
intended to
be converted into Public Limited Companies by way of obtaining necessary permission
from
relevant authorities, preparing prospectus for public issue of shares and debentures,
involving in
the collection of application money and end through listing of securities with stock
exchange.
Underwriting:
Agrani Bank Limited with its strong capital base is capable of providing underwriting
commitments for successful completion of IPO of any size enabling the companies to go
public.
Portfolio Management:
Initially the Non-Discretionary (i.e. Investor's Discretion) portfolio account will be
opened.
Subsequently the portfolio management shall be expanded with the introduction of
following
schemes:
Bank's discretionary portfolio account.
Investor's discretion portfolio management scheme for high net worth investors.
Profit loss sharing portfolio management scheme (subject to approval of SEC).
Interest, Fees, Commission etc:
Cost of account opening form :Tk. 25.00
Initial Documentation Charge :Tk. 500.00
Brokerage Commission: 0.50% on the value of traded securities.
Interest on Margin Loan:
Interest Rate : 13.00% per annum Mode of charging interest : Quarterly
Page 45 of 85
Service Charge
working abroad. We have made arrangement to ensure crediting the remitted amount to
the
beneficiary's A/C within 72 hours from the time our Back Office in Dhaka receives Credit
Advice.
Page 46 of 85
You may open NFCD Account in any of our Authorized Dealer (AD) Branches in
Bangladesh.
You may also collect Forms from Bangladesh Missions abroad and send your
application to us
for opening NFCD Account. Facilities of NFCD Account:
Your money will always be in foreign currency of your choice
You can withdraw and transfer both interest and principal in foreign currency
You will enjoy many privileges Government has declared for expatriate Bangladeshis
who send their money through banking channels
You can also convert your foreign currency into Taka
Probashi Remittance Card:
The Probashi Remittance Card is a prepaid card that provides customer immediate
access to
their pay. The cardholder or beneficiaries can use the card at any Electro ways ATM or
pay
for purchases at the point-of-sale, pay bills and transfer funds to their loved ones ! Like
other
prepaid payment products, the Probashi Card can be used every places where Electro
ways logos
are accepted. The cardholders also can receive a monthly statement and can obtain
account
information at ATMs and POS terminals or by calling the customer care number.
Instant payment
No minimum balance requirement
Can be used at any Electro ways enabled POS or ATM
Access to money anytime
Balance inquiry facility available via ATMs and POS
Page 47 of 85
Business Benefits
With the RemitONE MTMS, Agrani Bank now offer a set of advanced, enhanced, rapid
and
secure services to their customers, including:
1. Enhanced customer experience due to the following impressive same day services:
Spot Cash remittance for both account holders and non-account holders
Instant SMS notifications after successful processing of transactions
2. Improved remittance delivery options for remitters to choose from and to make it
easier for beneficiaries to collect their funds
3. Significantly reduced processing costs due to automation of all remittance-related
tasks
4. Improved business process management due to business-critical information
being
instantly available to the right staff member at the right branch
5. Empowered business users who can tend to a multitude of customers in a highly
effective and efficient manner
6. Rapidly increasing ROI through rapid execution of various remittance operations,
tasks
and activities
Page 49 of 85
produced according to the various service quality dimensions. Each dimension consists
of its
own specific questions. The results of the survey are presented according to these
questions that
were asked to the respondents with the help of a structured questionnaire. The results
of this
study are as follows:
6.1 Reliability:
Page 51 of 85
Chapter -6
Customers Importance
&
Level of Satisfaction
Aspects relating to reliability dimension of service quality were asked in 3 different
questions.
These questions are as follows:
Q1: Provides services within the time promised.
Q2: Employees give appropriate solution to problems.
Q3: Errors and mistakes correctly promptly.
Q1: Provides services within the time promised.
The respondents placed a high importance in this characteristic of the service. The
majority of
the respondents are indifferent. 2% customers are highly satisfied, 20% customers are
satisfied
60% customers are indifferent as well as 18% customers are negative with this
statement.
Table 1: Provides services within the time promised.
Satisfaction Score Satisfaction Percentage (%)
5 2%
4 20%
3 60%
2 18%
1 0%
Chart-1:
Provides services
within the time
promised.
Page 52 of 85
Q2:
Employees give appropriate solution to problems.
It is one of the most vital parts of the reliability. Customer always tries to get appropriate
solution to problem. The respondents placed a high importance in this characteristic of
the
service. The majority of the respondents are negative with this statement. 15%
customers are
satisfied, 40% customers are indifferent and 45% customers are disagreeing with this
statement.
Table 2: Employees give appropriate solution to problems.
Page 53 of 85
Satisfaction Score Satisfaction Percentage (%)
5 0%
4 15%
3 40%
2 45%
1 0%
6.2 Responsiveness:
Three attributes were grouped in this dimension and the respondents were asked to
express their
opinion. Results are various aspects are shown below:
Q1: Employee gives you prompt service.
Q2: Employees are always willing to help.
Q3: Employee always searches for solution.
Page 55 of 85
5 2%
4 40%
3 30%
2 28%
1 0%
Page 56 of 85
6.3 Assurance:
Aspects relating to assurance dimension of service quality where asked three different
questions.
42% customers are indifferent, 30% customers are disagreeing with this statement and
8%
customers are highly disagreeing with this statement.
Table 9: Agrani Bank gives attention to every individual
Chart-9: Agrani Bank gives attention to every individual
Q2: Employees of Agrani Bank understands your specific needs
Page 62 of 85
Satisfaction Score Satisfaction Percentage (%)
5 0%
4 20%
3 42%
2 30%
1 8%
Most of the respondents were in indifferent while expressing their satisfaction towards
this
aspect. In this attribute satisfaction percentage is not much higher. 25% customers are
satisfied,
55% customers are indifferent, and 20% customers are disagreeing with this statement.
Table 10: Employees of Agrani Bank understands your specific needs
Chart-10: Employees of Agrani Bank understands your specific needs
Q3: Agrani Bank has your best interest at hearts
Page 63 of 85
Satisfaction Score Satisfaction Percentage (%)
5 0%
4 25%
3 55%
2 20%
1 0%
This attribute was also found to be another one of the most important ones. In this
attribute
satisfaction percentage is not much higher. 32% customers are satisfied, 48%
customers are
indifferent, 15% customers are disagreeing with this statement and 5% customers are
highly
disagreeing with this statement.
Table 11: Agrani Bank has your best interest at hearts
Chart-11: Agrani Bank has your best interest at hearts
6.5 Tangibles
Page 64 of 85
Satisfaction Score Satisfaction Percentage (%)
5 0%
4 32%
3 48%
2 15%
1 5%
4 questions relating to the tangible dimension were asked to the respondents. These
questions
covered various tangible aspects of the services provided by Agrani Bank. The results
are shown
below:
Q1: Agrani Bank has visually appealing facilities
Q2: Agrani Bank has convenient hours of operation
Q3: Statements are easily understood, reliable and accurate
Q4: Agrani Bank has modern equipment and technology that better satisfy your needs
Q1: Agrani Bank has visually appealing facilities
Most of the respondents were in indifferent while expressing their satisfaction towards
this
aspect. In this attribute satisfaction percentage is not much higher. 25% customers are
satisfied,
45% customers are indifferent, 22% customers are disagreeing with this statement and
8%
customers are highly disagreeing with this statement.
Table 12: Agrani Bank has visually appealing facilities
Page 65 of 85
Satisfaction Score Satisfaction Percentage (%)
5 0%
4 25%
3 45%
2 22%
1 8%
satisfied, 15% customers are indifferent with this statement, 8% customers are
disagreeing with
this statement and 2% customers are highly disagreeing with this statement.
Table 14: Statements are easily understood, reliable and accurate
Page 67 of 85
Satisfaction Score Satisfaction Percentage (%)
5 10%
4 55%
3 15%
2 8%
1 2%
Chart-15: Agrani Bank has modern equipment and technology that better satisfy your
needs
or buying products from organization is different among the customers. This attribute
was also
found to be another one of the most important ones. In this attribute satisfaction
percentage is not
much higher. 28% customers are satisfied, 52% customers are indifferent with this
statement and
20% customers are disagreeing with this statement.
Table 16: Agrani Bank has strong brand name and reputation
Page 70 of 85
Satisfaction Score Satisfaction Percentage (%)
5 0%
4 28%
3 52%
2 20%
1 0%
Table 17: Quality of service is high that are provided by the personnel
Chart-17: Quality of service is high that are provided by the personnel
Q3: Agrani Bank has sufficient ATM booths
In recent days ATM service has become vital for the customers and banks. The banks
are
willingly to achieve competitive advantage through superior flexibility. In this attribute
satisfaction percentage is not much higher. 20% customers are indifferent with this
statement,
35% customers are disagreeing with this statement and 45% customers are highly
disagreeing
with this statement.
Table 18: Agrani Bank has sufficient ATM booths
Page 72 of 85
Satisfaction Score Satisfaction Percentage (%)
5 0%
4 15%
3 25%
2 35%
1 25%
Satisfaction Score Satisfaction Percentage (%)
5 0%
4 15%
Chart- 18: Agrani Bank has sufficient ATM booths
Quality of service is the most important part of the Agrani Bank. But they do not give
quality full service. So it is very necessary to improve their service quality.
Agrani Bank does not use modern equipment and technology that better satisfy
customers
needs
Agrani Bank does not give individual attention to the customer
The customers have to pay charge to get second copy of bank statement. If it is for
last
six months then the bank provides it instantly, but they seek for more than six months,
statements are delivered on after two or three days.
Most of the customers feel safe in transactions with Agrani Bank. So that it is one of
the
most vital or strong part for Agrani Bank.