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Chapter 1

Introduction

1.0 INTRODUCTION

Mercantile Bank Limited is a banking company registered under the


companies Act 1994 with its heads office 15 Dilkusha C/A, Dhaka1000. The bank operates as a scheduled bank under a banking
license issued by the Bangladesh Bank. The Bank started its
operation from 22, November 1995. MBL is a capitalized new
generating Bank with an authorized capital of Taka 4000 million in
2014 and paid up capital of Taka 1309.88 million in 2014 and also
1119.55 million respectively as of December 2014

In the formal corporate sector, this Bank would, among others, offer
the most up-to-data banking services through operating of various
types of deposit and investment accounts, financing trade, providing
letters of guarantee, opening letters of credit, collection of bills
effecting domestic and international transfer, leasing of equipment
and consumer durables, hire purchase and installment sale for
capital goods, investment in low-cost housing and management of
real estates, participatory investment in various industrial,
agriculture, transport, educational and health projects and so no.

1.1 Origin of the report:


Internship is a compulsory course that needs to be undertaken to
achieve the graduate degree Bachelor of Business Administration.
The purpose of this course is to experience the reality of the
corporate life and relate it with the knowledge acquired from
academic curriculum. This report is part of that Internship course
and needed to be submitted for final grade. Main part of the report
focuses on the survey of customer satisfaction regarding quality of
service of Mercantile Bank Limited.

1.2 Objectives:
The objectives of this report can be classified into general and
specific objectives.

1.2.1General objectives

To co-ordinate between theory and practice and to make a


bridge

between

theoretical

and

practical

knowledge

in

fulfillment of the internship program.


To get overall idea about financial performance of MBL
A clear and lucid knowledge about the corporate culture.
To have better direction to identify and suggest the scope of
enhancement in foreign exchange operations to fulfill the
requirement of the internship program.

1.2.2 Specific objectives

To find out the customer satisfaction regarding quality of

service of Mercantile Bank Limited


To get a close look on the mechanism of overall banking of

MBL.
To understand the customers perception about reliability of

Mercantile Bank.
To assess the customers perception about responsiveness of

Mercantile Bank.
To explore the customers perception about assertion of

Mercantile Bank.
To realize the customers perception about compassion of
Mercantile Bank.

1.3 Methodology of the report:


Data collection and methodology of the study is an essential
part of the study. It is designed in a way so that it
corresponds to achieve the objectives of the study. It includes
designing samples, sources of data, collection procedure of
data, analysis techniques data etc.
1.3.1 Data Collection Procedure: I gathered data from the
primary and secondary sources.
1.3.2 Data Analysis Procedure: After collecting the data
was analyzed by Microsoft Word & Excel. Then the findings
were made. Based on the findings the present situation was
explained and recommendation was made.
1.3.3 Data Collection: This research is prepared on the basis of
mixed methodology. Both the primary and secondary data have
been used in this research. So the report is based on both the
secondary and primary data.
Sources of Dataa) Primary data
Primary data have been collected through the clients of
Mercantile

Bank

questionnaire

and

Limited.
they

They

have

were

been

asked

questions.
b) Secondary Sources/ External Sources

Official papers of MBL


Website of MBL and other banks website
Annual report of MBL
The archive of the MBL
Bangladesh Bank Report
Newspaper, Magazines etc.

given

some

1.4 Limitations:
The main constraint of the study is time limitations. Many of

the aspects could not be discussed in the present report.


Every organization has their own secrecy that is not revealed
to others. So I cannot disclose much information for the sake

of the confidentiality of the organization.


The insufficiency of information is main constraint of the
study. Moreover employees are not interested to provide all
information due to security and other corporate obligation

Limitations of the study.


Since the bank personnel were very busy, they have no ability

to give me enough time to complete the report.


Such a study was carried out by me for the first time. So,
inexperience is one of the main factors that constituted the

limitation of the study.


It has been conducted for academic purpose, so it may not
represent the overall scenario of service quality of the Bank.

Chapter 2
Company overview

2.1

Historical

Background

of

Mercantile

Bank

Limited:
In the backdrop of economic liberalization and financial sector
reforms, a group of highly successful local entrepreneurs conceived
an idea of floating a commercial bank with different outlook. For
them, it was competence, excellence and consistent delivery of
reliable service with superior value products. Accordingly, Mercantile
Bank was created and commencement of business started in 1999.
Mercantile Bank Limited is a scheduled private commercial Bank
established on May 20, 1999 under the Bank Company Act, 1991
and incorporated as a Public Limited Company under Companies
Act, 1994. The Bank started commercial Banking operations from
June 02, 1999. From then within a short time MBL established itself
in a strong position in the economy of the country. It has earned
significant reputation in the countrys banking sector as Bank and
created a wide image in the eye of the people. The current CEO of
MBL is M. Ehsanul Haque. The dream of creating MBL, which is A
Bank of 21st Century, has become successful because of the
initiative of some persons who are the sponsors of MBL. There are
30 sponsors in Mercantile Bank Limited and all of them are highly
regarded for their entrepreneurial competence.

MBL has been able to establish itself as a leading third generation


private commercial bank by dint of its prudent policy guidelines
coupled with proper execution, wider range of banking products and
excellent customer services. The core activities of the Bank are to
provide all kinds of commercial banking services including deposits
mobilization, providing loans, discounting bills, foreign exchange
business, off-shore banking, treasury function, card business and
mobile banking. MBL caters card services to its customers by VISA
dual prepaid card, VISA Dual Hajj Card, Credit Card and Debit card,
and International/ Dual cards with various up-to-date facilities. MBL
is continuously expanding its ATM network and inking contract with
the other banks with a view to making its card service more
attractive and convenient to all. Except these, MBL is also providing
other services through its (02) two subsidiary companies .MBL has
broad network coverage across the country. It has 96 (Ninety Six)
branches now. MBL has 120 ATM booths and 20CDMs (Cash Deposits
Machine) as on December 2013covering important locations across
the country. Mercantile Bank Securities Limited (MBSL), a subsidiary
company of MBL dealing with stock and broking has 7 (seven)
branches across the country.

2.2 Vision, Mission and Objectives:


2.2.1
Vision
Would make finest
corporate citizen.

2.2.2 Mission
Will become most caring, focused for equitable growth based on diversified
deployment of resources and nevertheless would remain healthy and gainfully
profitable Bank.

2.2.3 Objectives
Strategic objectives

To achieve positive Economic Value Added (EVA) each year.


To be market leader in product innovation.
To be one of the top three Financial Institutions in Bangladesh

in terms of cost efficiency.


To be one of the top five Financial Institutions in Bangladesh in
terms of market share in all significant market segments we
serve.
Financial Objectives

To achieve 20% return on shareholders equity or more, on


average.

2.3 Core Values:

For the customers


Providing with caring services by being innovative in the
development of new banking products and services.
For the shareholders:
Maximizing wealth of the Bank.

For the employees


Respecting worth and dignity of individual employee
Devoting their energies for the progress of the Bank.

For the community


Strengthening the corporate values and taking environment
and social risks and reward into account.

2.4 Corporate Philosophy


Customers, employees and shareholders are equally important to
them. They want to achieve strong corporate growth through
FINANCIAL INCLUSION. They provide solutions at a minimum cost
based on a high level of satisfaction of all segments of their

customers, thus also contributing to the prosperity of their


employees and shareholders. With a firm commitment to provide
solutions,

They

are

constantly

developing

innovative

and

technologically advanced products and services that satisfy their


customer needs. They offer cutting edge compensation package and
good work environment to their employees. They never forget their
shareholders to make them pleased with financial well-being and
increase their shares value. This has given them a path to the
growth and progress.

2.5 Product/Service Offerings


2.5.1 Deposit Products
Current deposit accounts
Savings deposit accounts
Special notice deposit
Fixed deposit receipt
Scheme deposit
Monthly savings scheme

Double

deposit scheme
Family

benefit

maintenance

deposit scheme
1.5 times benefit

deposit scheme
Advance benefit

deposit scheme
Special
savings

scheme
Education
planning deposit

scheme
Super

benefit

deposit scheme

2.5.2

Loans and Advances

Retail Loans
Consumer credit scheme -Lease finance
Car loan scheme
Home loan scheme
Doctors credit scheme
Any purpose loan
House furnishing loan
Overseas employment loan scheme
Cottage loan
Education loan
Rural development scheme

Corporate loans:
Short term finance
Long term finance
Real estate finance
Import finance
Work order financing
Export finance
Structured finance
Loan syndication

2.5.3 SME Financing


Chaka (Term loan)

Samriddhi (Continuous loan)


Moushumi (Short term seasonal loan)
Anannya (Wome entrepreneurs loan)

2.5.4 Agriculture Loan

Nabanno ( Krishi/ Polli loan)


Sakti (ETP/Solar energy loan)

2.5.5 MBL Card


Debit card
Credit card (Local card, International card, Currency card)
MBL pre-paid card (Student card, Hajj Card, Travel Card)
2.5.6 Other Services:

Online banking

Mobile financial services


Off-shore banking
NRB banking
Online SMS banking
Locker service
Utility bills pay service
ATM booth services

2.6 Corporate Structure of MBL:


Managing Director and CEO
Additional Managing Director
Deputy Managing Director
Senior Executive Vice President
Executive Vice President
Senior Vice President

Executive Vice President


First Vice President
Assistant Vice President
First Assistant Vice President

Principle Officer
Senior Executive Officer
Executive Officer
Assistant Officer

2.7 Corporate structure of MBL, Motijheel


Branch:
EVP & Branch in-Charge
AVP
FAVP

PO
Senior Executive Officer
Executive Officer
Assistant Officer

2.8 Corporate Priorities:

Ensure customers satisfaction by meeting their demands with

excellent customer services


Enlarge customers freedom by designing need based banking

products and services


Manage credit risk by diversified loan portfolio with emphasis

on SME and agriculture financing


Mitigate different risks through efficient risk management

techniques
Strengthen

internal

control

and

compliance

system

to

establish a very systematic and effective compliant culture

2.9 Office Automation:


Basic accounting system of the bank has been fully computerized to
minimize cost and risks and to optimize benefits and increase
overall efficiency for improved services. The bank is capable of
generating the relevant the financial statements at the end of the
day.
The Bank has also hosted a web page of its own to take a place in

the World Wide Web. On-line Banking has been introduced by the
Bank to provide better services to the customer. The Bank has
already introduces ATM Q-Cash. The Bank has installed SWIFT to
facilitate quick international trade and payments arrangements.

2.10 Feature of Mercantile Bank Limited:


There are so core strengths behind the better performance of
Mercantile Limited than any other newly establishes banks.
Mercantile Bank Limited has established a core research and
planning Division comprising skilled person from the very
inception of the banks.
Highly qualified and efficient professionals manage the bank
The inner environments of the all branches of Mercantile Bank
Limited are well decorated
Banking operations of all branches of mercantile bank limited
have been computerized to provide the promptly and
frequently customer service.
The Bank has established correspondent relationship with 102
of foreign banks.
The bank has launched some financial products, which is not
available in any other banks, like Ajebon pension scheme.
Mercantile Bank Limited provides attractive interest rate than
the other financial institutions
The Bank provides loan to the customers 12% lower interest
rate with easy and flexible condition than the other do.

The Bank frequent arranges customers to achieve their


valuable suggestions
Letter of credit commissions and other charges are very lower
than the other banks. Profit earning is not the main aim of the
MBL. The bank is responsible to maintain the social duties.

Chapter 3
Analysis

3.1 Brief on project:


Basically, the main reason to do this project is to find out the
satisfaction level of the customers of Mercantile Bank
Limited. At the time of doing this project a questionnaire with
30 questions has been prepared which was related with
Mercantile Bank Limited like- their deposit pension scheme,
ATM card service, customer service, monthly installment
payment and overall banking service. The project is mainly
done to find out the feelings about Mercantile Bank Limited
from their customers. Also try to show the scenario of the
feedbacks that got from the customers at the time of doing
the research.

3.1.1 The Rating Scale:


Customers responses have been recorded by using 5 point Liker
Scale or Technique where the customer were asked to evaluate each
statement to rate their degree of satisfaction or dissatisfaction.
These degrees of satisfaction or dissatisfaction were plotted on the
5 point Likert Scales where point 1 indicates highly satisfactory
and point 5 indicates highly dissatisfactory with the service
quality. The scale was unforced as it has a neutral point. Also it was
a balanced scale because there is similar number of positive and
negative argument against the statements. The format of the scale
is given below:

Highly Satisfactory

Neutral

Dissatisfactory

Satisfactory

3.2 Research Findings and Analysis:


I asked 30 respondents to get information about customer
satisfaction. From where Male -70%
Female -30% and I use pie chart in order to get information.

1. How is the Deposit Pension Scheme (DPS) to you?

Highly
Dissatisfactory

Deposit Pension Scheme

11%

6%

20%

Highly satisfactory
Satisfactory
Neutral

26%
37%

Dissatisfactory
Highly dissatisfactory

Interpretation: The above illustration shows that 20% highly


satisfactory, 37% satisfactory, 26% neutral, 11% dissatisfactory and
6% highly dissatisfactory about the Deposit Pension Scheme (DPS)
of Mercantile Bank Limited

2. How is the maturity amount of deposit Pension Scheme


(DPS) to you?

Maturity Amount of DPS


9% 1%

18%

Highly satisfactory
Satisfactory
Neutral

30%

Dissatisfied
43%

Highly dissatisfied

Interpretation: The above illustration shows that 18% highly


satisfactory, 43% satisfactory, 30% neutral, 9% dissatisfactory and
1% highly dissatisfactory about the Maturity amount of Deposit
Pension Scheme (DPS) of Mercantile Bank Limited.

3. How is the installment of Deposit Pension Scheme (DPS)


to you?

Installment Of DPS

5%
25%

20%

Highly satisfactory
Satisfactory
Neutral
Dissatisfactory

50%

Highly Dissatisfactory

Interpretation: The above illustration shows that 20%


highly satisfactory, 50% satisfactory, 25% neutral, 5%
dissatisfactory and 0% highly dissatisfactory about the
installment of Deposit Pension Scheme (DPS) of Mercantile
Bank Limited.

4. How is the interest of loan to you?

Interest of loan

18%

Highly satisfactory

14%

Satisfactory
Neutral

18%
9%

41%

Dissatisfactory
Highly dissatisfactory

Interpretation: The above illustration shows that 15%


highly satisfactory, 45% satisfactory, 10% neutral, 20%
dissatisfactory and 15% highly dissatisfactory about the
interest of loan of Mercantile Bank Limited.

5. How is the monthly installment amount of loan for


you?

Monthly installment of loan

5%

11%

9%

Highly satisfactory
Satisfactory

21%

Neutral
Dissatisfactory
Highly dissatisfactory

54%

Interpretation: The above illustration shows that 9% highly


satisfactory,

21%

satisfactory,

54%

neutral,

11%

dissatisfactory and 5% highly dissatisfactory about the


monthly installment of loan of Mercantile Bank Limited.
6. How is the time you get the loan service?

Time to get the loan service

15%

6%

6%

Highly satisfied
22%

Satisfied
Neutral
Dissatisfied
Highly dissatisfied

51%

Interpretation: The above illustration shows that 6% highly


satisfactory,

22%

satisfactory,

52%

neutral,

15%

dissatisfactory and 5% highly dissatisfactory about the time

of getting loan of Mercantile Bank Limited.


7. How is the ATM card of MBL?

ATM card of MBL


Highly satisfactory

5% 15%

Satisfactory
Neutral

31%

Dissatisfactory
Highly dissatisfactory
49%

Interpretation: The above illustration shows that 15%


highly satisfactory, 49% satisfactory,

31% neutral, 5%

dissatisfactory and 0% highly dissatisfactory about the ATM


card of Mercantile Bank Limited.
8. The availability of money in ATM booth?

Availability of money in ATM booth

5%

Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied

95%

Interpretation: The above illustration shows that 95% satisfactory,


5% dissatisfactory about availability of money in ATM booth of
Mercantile Bank Limited
9. How is the number of ATM Booth in Mercantile
Bank?

Number of ATM booth of MBL


Highly satisfactory

8% 8%

Satisfactory

12%

Neutral

27%

Dissatisfactory
Highly dissatisfactory

45%

Interpretation: The above illustration shows that 8% highly


satisfactory,

27%

satisfactory,

45%

neutral,

12%

dissatisfactory and 8% highly dissatisfactory about the


number of ATM booth of Mercantile Bank Limited.
10. Charges of ATM card of MBL?

Charge of ATM card of MBL?

8% 3%15%

Highly satisfactory
Satisfactory
Neutral
Dissatisfactory

37%

37%

Highly dissatisfactory

Interpretation: The above illustration shows that 0% highly


satisfactory, satisfactory, 37%satisfactory, 37% neutral, 8%
dissatisfactory and 3% highly dissatisfactory about the
charges of ATM card of Mercantile Bank Limited

11. How is the ATM card of MBL than other banks?

ATM card of MBL than other banks?

Highly satisfied

8% 9%

satisfied

15%

Neutral

25%

Dissatisfied
Highly dissatisfied

43%

Interpretation: The above illustration shows that 9% highly


satisfactory,

25%

satisfactory,

43%

neutral,

15%

dissatisfactory and 8% highly dissatisfactory about the


charges of ATM card of Mercantile Bank Limited.
12. How do you feel about the charges and margin of
opening an L\C in MBL?

Charges and margins of opening an L/C


4%
17%

Highly satisfactory
30%

Satisfactory
Neutral
Dissatisfactory
Highly Dissatisfactory

49%

Interpretation: The above illustration shows that 0% highly


satisfactory, 30%

Satisfactory, 49% neutral, 4% dissatisfactory and 0% highly


dissatisfactory about the charges and margins of opening an
L/C in Mercantile Bank Limited.
13. Are you satisfied with capability of MBL to interact
with foreign bank for resolving any issue?

Capability of MBL to interact of other bank


Highly satisfied

6%

Satisfied

22%

Neutral
Dissatisfied
Highly dissatisfied
72%

Interpretation: The above illustration shows that 0% highly


satisfied, 72% satisfactory, 22% neutral, 6% dissatisfactory
and 0% highly dissatisfactory about the with capability of
MBL to interact with foreign bank for resolving any issue
14. Are you satisfied of our cash counter services?
Interpretation: The above illustration shows that 10%
highly

satisfied,

20%

satisfactory,

40%

neutral,

15%

dissatisfactory and 10% highly dissatisfactory about the


service of cash counter.

15. Does bank offers competitive service charges?

Bank offers competative service charges


1%
Yes

46%

No

53%

Interpretation: The above illustration shows that 53% said


yes and 46% said no about the competitive service charge.
16. When bank promises to do something by certain
time they do so?
Interpretation: The above illustration shows that 11% highly
satisfied, 31% satisfactory, 44% neutral, 12% dissatisfactory and 2%
highly dissatisfactory about the when bank promises to do
something by certain time they do so.
17. Employees of MBL are always willing to help customers?

Employees are willing to help customers


11%

Highly agree

18%

Agree

18%

Neutral
Disagree

35%

19%

Highly disagree

Interpretation: The above illustration shows that 18%


highly agree, 35% agree, 19% neutral, 18% disagree and
10% highly disagree about the willingness of employees to
help customer.
18. Are you satisfied having account in this branch?

Satisfaction about having acccount in this branch

Yes

25%

No

4th Qtr

75%

Interpretation: The above illustration shows that 75% said


yes and 25% said no about the competitive service charge.
19. What do you feel about overall service quality of
your bank?

Overall service quality of this bank

12%

1% 2%

Excellent
Very good
Good

37%

Average
Poor

48%

Interpretation: The above illustration shows that 2%


excellent, 37% very good, 48%good, 12% average and 1%
poor about the overall service quality of this branch.

20. Would you like to recommend this bank to your


friends, relatives; associates?

Recommendation to others

35%
Yes

No
65%

Interpretation: The above illustration shows that 65% said

yes and 35% said no about recommendation this bank to


others.