Jewel Rana

Term Paper
On
Comparative financial system
of Islamic Banking system
and traditional Banking
system
( Shahjalal Islami Bank and NCC Bank Limited)
Department of Finance & Banking
Banking System in Practice: A NCC Bank Perspective
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Tejgaon College, Dhaka
National University
Bangladesh
Term Paper
on
Comparative financial system of Islamic
Banking system and Traditional Banking
system
(Shahjalal Islami Bank and NCC Bank Limited)
Prepared by:
BACHU MIAH
Exam roll: 9578260
Registration No: 1632174
Session: 2009-2010
Bachelor of Business Administration
Major: Finance & Banking
Supervisor
S.M.Mahbubul Islam
Subject Teacher
Date of submission:
April 13, 2015
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Page21
National University
Bangladesh
TERM PAPER
ON
Comparative financial system of Islamic Banking
system and Traditional Banking system
( Shahjalal Islami and NCC Bank Limited
Bank)
Prepared for
2nd Examiner
National University, Bangladesh
Prepared by:
BACHU MIAH
Exam roll: 9578260
Session: 2009-2010
Supervisor
S.M.Mahbubul Islam
Subject Teacher
Date of submission:
April 13, 2013
Page21
Page21
National University
Bangladesh
TERM PAPER
ON
Comparative financial system of Islamic Banking
system and Traditional Banking
(Shahjalal Islami Bank and NCC Bank Limited)
PREPARED
FOR:
Controller of Examination
National University, Bangladesh
Prepared by:
BACHU MIAH
Exam roll: 9578260
Session: 2009-2010
Supervisor
S.M.Mahbubul Islam
Assistant Professor
Date of submission:
April 13, 2015

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Letter of Transmittal
April 13, 2015
To
S.M.Mahbubul Islam
Subject Teacher
Subject: Submission of Term Paper

Dear sir,
It is my pleasure to submit the Term Paper tiled Application of AIS in Banks: A Shahjalal Islami
bank and NCC bank Perspective. As a part of partial fulfillment of the requirements for the
academic year. I have enjoyed the whole event during my term paper Program. Because I had work in
different departments which helped me to learn different aspect of banking sector. It is a collaborative
effort to confine the theoretical knowledge and what is going on as the practical field of activities.
I have put my best effort to preparing this term paper and to make it a worthy one is each aspect. I
deeply regret for my inconvenience located in this report and I shall always be available for any
clarification required.
Sincerely Yours
Page21
BACHU MIAH
Exam roll: 9578260
Session: 2009-2010
Acknowledgement
This is high time for me convey my deepest gratitude and sincere submission to the almighty Allah
for giving me the opportunity to accomplish this Term Paper, I convey my heartfelt thanks to my
honorable supervisor S.M.Mahbubul Islam for his careful suggestion and enthusiasm bringing words
every time during the preparation of this report. And it is worth whom I have learned all the academic
year.
I would like express my gratitude to Mr. Ziauddin Sawlet Gani (Vice President & Manager)
at Matijheel Branch of Shahjalal Islami Bank Limited. I am also grateful to other personnel of
this branch. They tried their best to manage their valuable time for me in furnishing
information, as well as gave me suggestion to conduct the study. Thank goes to all the
employees of Matijheel Branch, to my friend, seniors who have given their opinion,
information and suggestion for the completion of the report. Thank also goes to all of those
who gave their valuable time by providing help and information to me.
No words of appreciation can sufficiently express about the Tejgaon College, Dhaka & NCC Bank
Limited. I am also indebted to Mustafa Tayab (Branch Manager & AVP) & Mr. Abdullah Al Mamun
Chowdhury (Deputy Manager & Principal Officer), NCC Bank Limited, Narayangonj Branch.
Equally I would like to express my sincere gratitude to my parents, my friends, classmates, coworkers and well wishes that supported me and give me strength in every sphere of my life.
I have so far giving my best effort to prepare and represent this term paper. I hope my endeavor will
Page21
be beneficial to the audience and urge for exonerate eye for any mistake for error found in the report.
EXECUTIVE SUMMARY
The report investigates the performance of Shahjalal Islami Bank Limited (SJIBL) Matijheel
Branch. It also identifies general banking operation of SJIBL Matijheel Branch. Shahjalal
Islami Bank Limited is scheduled commercial Bank registered by the Bangladesh Bank. It is
committed to conduct all banking and investment activities on the basis of interest-free profit
loss sharing systems. SJIBL follows the rules and regulation prescribed by the Bangladesh
Bank for scheduled commercial bank. The functions of the bank cover a wide range of
banking and functional activities to individuals, firms, corporate bodies etc. Banks loans are
greatly emphasized and it can be called the Heart of the bank because it is the major source
of banks income. It is very important to the national economy as a whole because the
expansion and condition of the bank loan affect the level of business activities to different
sectors to diversify its credit portfolio in compliance with credit policies of traders,
manufacturing processing plants and export industries and other business.
Banking system of Bangladesh has gone through three phases of developmentNationalization, Privatization, and Lastly Financial Sector Reform. National Credit &
Commerce Bank Limited (NCCBL) started its journey in the financial sector of the country
as an investment company back in 1985. The company operated up to 1992 with 16 branches
and thereafter with the permission of the Central Bank converted in to a fully fledged
scheduled private commercial bank in May, 1993 with paid up capital TK. 39.00 core to serve
the nation from a broader platform.
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The whole working process of NCCBL is divided into 4 sections- (a) General Banking
section, (b) Credit Section, (c) Foreign Exchange Section (d) Card Section. In this report I
have tried to concentrate on Loan and Advances, Local LC, General Banking, Foreign
Remittance, ATM & credit card and SWOT analysis. NCCBL has office automation like
online banking (All branches), own Software FLORABANK. This report has been presented
based on observation from NCCBL, Narayangonj branch. NCCBL have made their strong
initiatives in banking sector. They can one of the best private banks In Bangladesh, if they
will match the expectation of their clients, through their best banking service.
CONTENTS
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EXECUTIVE SUMMARY......................................................................................... 7
Chapter 1............................................................................................................. 9
INTRODUCTION................................................................................................... 9
1.1. ORIGIN OF THE REPORT..........................................................................9
1.2. RATIONALE OF THE STUDY.....................................................................9
1.3. OBJECTIVES OF THE STUDY..................................................................10
1.4. METHODOLOGY OF THE STUDY...........................................................10
1.5. SCOPE OF THE REPORT.........................................................................11
1.6. LIMITATIONS OF THE STUDY................................................................11
Chapter 2........................................................................................................... 12
ORGANIZATIONAL OVERVIEW......................................................................12
2.1. HISTORICAL BACKGROUND..................................................................12
2.2. VISION..................................................................................................... 12
2.3. MISSION.................................................................................................. 12
2.5. FUNCTIONS OF THE BANK....................................................................13
2.6. TARGET CUSTOMERS............................................................................. 13
2.7. DEPOSIT.................................................................................................. 13
2.8. CREDIT..................................................................................................... 14
2.9. PRODUCTS AND SERVICES OF NCC BANK LTD..................................15
2.10. BRANCHES............................................................................................ 16
Chapter 3........................................................................................................... 17
3.1. SWOT ANALYSIS..................................................................................... 17
3.2. STRENGTHS............................................................................................ 18
3.3. WEAKNESSES......................................................................................... 18
3.4. OPPORTUNITIES..................................................................................... 19
3.5. THREATS................................................................................................. 19
Chapter 4........................................................................................................... 20
DATA ANALYSIS & FINDINGS...........................................................................20
4.1. ANALYSIS PROCEDURES.......................................................................20
4.2CUSTOME
SATISFACTION...
..21-26
Chapter 5........................................................................................................... 27
PERFORMANCE OF THE BANK AT A GLANCE.............................................27
GRAPHICAL PRESENTATION....................................................................28-29
Chapter 6........................................................................................................... 30
CONCLUSION..................................................................................................... 30
6.1. CONCLUSION.......................................................................................... 30
6.2. FINDINGS................................................................................................ 31
6.3. RECOMMENDATION...................................................................32
BIBLIOGRAPH
..........33
CHAPTER 1
INTRODUCTION
1.1. ORIGIN OF THE REPORT
The report basically focuses on General Banking and Credit Management system of Shahjalal
Islami Bank Limited, Matijheel Branch, was established on 1 st April, 2001 as a private
company. But it has been converted to commercial operation in accordance with interest free
Islamic Shariah based commercial bank on the 10 th May, 2001. More over this report will
help me to understand the culture of work in a bank. I have mentioned all the things in the
report whatever I have learned and have known from my internship in the Shahjalal Islami B
For any business school student only curriculum activity is not enough for handling the real
business situation, therefore it is an opportunity for the students to know about the field of
business through the report program bank Limited, Matijheel Branch.
This report is originated to fulfill the requirement of the assign project Term Paper on An
Application of Accounting Information System: A NCC Bank Perspective has been
assigned to me by Human Resources Department of NCC Bank Ltd, Head office, Dhaka and
Supervised by Mr. Mustafa Tayab, Branch Manager, In this regard, I have worked as an
intern in National Credit and Commerce Bank Ltd. (NCCBL), Narayangonj Branch, from
April 03, 2011 to July 03, 2011.
During this period I have learned how the host organization works with the help of the
internal supervisor. On the basis of working experience in this period I have prepared this
report and I have tried my level best to relate the theoretical knowledge with the practical
work situation.
1.2. RATIONALE OF THE STUDY

The report will illustrate a basic reflection about the Shahjalal Islami Bank Limited present
condition of the bank in private banking sector, various schemes of SJIBL, interest rate and
activities, credit management system of SJIBL etc.
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However I could get the opportunity to work in Foreign Exchange department which I feel ne
it is very much needed to develop the general banking practices in order to provide better day
to day banking services to the valued customers. Because as a service oriented industry a
bank should believe that customers is all and the king. Customers favoring to a bank by
providing the opportunity to the bank to serving him. The government of our country and
the central bank i.e., the Bangladesh Bank has decided to extend considerable help in every
respect of general banking to concerned people. Like other nationalized and non-nationalized
commercial banks like NCC Bank Limited serves the nation by providing various modern
banking services and products. So as an Internee I thought of having special knowledge on

this field of increased importance.
1.3. OBJECTIVES OF THE STUDY

Had to attach with an organization and I chose SJIBL. For this I have some practical job
related experience with my academic knowledge.
The objective of the study may be viewed as:
General objective
Specific objective
The main objective of the report is to fulfill the requirement of BBA program. For this I
1.3.1 General Objective:

To analyze the year wise performance and Credit management System of SJIBL (Investment
Banking).
The general objective of the study is to prepare and submit a report on the topic of
General BankingTo gain a relationship between theoretical and practical learning
and real life situation of NCCBL
To know the history of the National credit and Commerce Bank Limited (NCCBL).To
know about overall general banking system of NCCBL.
To understand the major banking activities a banker performs those.
1.3.2 Specific Objective:
To know the general banking which include customer service, clearing section,
accounts and cash and credit management system of SJIBL.
To study existing bankers customers relationship.

To evaluate customers views about the services offered by commercial banks.
Analyzing the quantitative and qualitative information collected through primary and
secondary source are used for preparing this report. It contains pat present and future
facts, figures and situation of SJIBL. The information incorporated in this report has
been gathered from primary and secondary sources. Apart from this, a review of
related circular and office circular as well as face-to face interview of the executives,
officials and clients were carried out. Face-to-face conversation with the respective
officers and staff of the Brach.
Informal conversation with the clients.
Practical work exposures from the different desks of the department of the branch.
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1.4. METHODOLOGY OF THE STUDY
1.5. SCOPE OF THE REPORT

A basic reflection about the Shahjalal Islami Bank Limited present
condition of the bank in private banking sector, various schemes of SJIBL,
interest rate and activities, credit management system of SJIBL etc.
National Credit and Commerce Bank Ltd. (NCCBL) is operating widely with
81 branches all over the Bangladesh. This report is strictly confined
NCCBL operation. The report is based on the observation and studies
during my internship period in Narayangonj Branch, Narayangonj.
According to the study at first I will focus on the Companys Background,
Management Style, Present status and sp ecially the products.
1.6. LIMITATIONS OF THE STUDY
Limitation of time: Major limitation of this report is time constrain and availability of the
reference book.Lack of Secondary: The annual report was the main secondary Information
source of private information that was not enough to complete the report and the reader a
clear idea about the bank.Limitation of the Scope: While collecting data, they did not disclose
much information due to the confidentially of the organization.
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The first obstacle was that they would not provide any remuneration even for doing
internship in NCCBL. It is not an easy task to concentrate hard without any benefit.
As the officers were very busy with their daily work, they could provide very little
time. I was also very busy at my work.
Limitation of time was one of the most important factors that shortened the present
study. Due to time limitation many aspect could not be discussed in the present study.
Rush hours and business was another reason that acts as an obstacle while gathering
data.
CHAPTER 2
ORGANIZATIONAL OVERVIEW
2.1. HISTORICAL BACKGROUND
Shahjalal Islami Bank Limited is based on Islamic Shariah. SJIBL is named after the name of
a saint Hajrat Shahjalal ( R ) who dedicated his life for the cause of peace in this world and
hereafter and served the humanity. It was incorporated as a public limited company on 1st
April 2001 under companies Act 1994. It started its banking operation on May 10, 2005 with
the 1st branch Dhaka Main opened at 58, Dilkhusa C/A, Dhaka obtaining the license of
Bangladesh Bank, for enlistment of economic condition of its customers as well as to
contribute sustainable economic growth and development in trade and industry of the
country. Its corporate head quarter is situated at 10, Dilkhusa C/A, Jiban Bima Bhaban,
Dhaka-1000. Now it has 51 Branches, 15 Branches are Dhaka and rests of all are in
Chittagong, Sylhet, Gazipur, Syedpur, Khulna, Barishal. The sponsors of SJIBL are leading
business personalities and renowned industrialist of the country. Now this bank has paid up
capital 3495.05 million and no. of directors are thirteen.
National Credit and Commerce Bank Limited bears a unique history of its own. The
organization started its journey in the financial sector of the country as an investment
company back in 1985. The aim of the company was to mobilize resources from within and
invest them in such way so as to develop countrys Industrial and Trade Sector and playing a
catalyst role in the formation of capital market as well. Its membership with the bourse
helped the company to a great extent in this regard. The company operated up to 1992 with
16 branches and thereafter with the permission of the Central Bank converted in to a fully
fledged scheduled private commercial bank in May, 1993 with paid up capital Tk. 39.00 crore
to serve the nation from a broader platform.
2.2. VISION
To extends customers innovation services acquiring state-of-the-art technology blended with
Islamic principles and being total satisfaction to our clients and employees.To extends
customers innovation services acquiring state-of-the-art technology blended with Islamic
principles and being total satisfaction to our clients and employees. th.
2.3. MISSION
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Will become most caring, focus for equitable growth based on diversified deployment of
resources, and nevertheless would remain healthy and gainfully profitable bankTo
expandIslamic banking throughout welfare oriented banking system.Ensure equity and justice
in economic activities..
2.4. FUNCTIONS OF THE BANK

The NCCBL performs all types of functions of a modern commercial bank, which generally
includes:
Accepting deposits
Making advances and investments
Discounting and purchasing bills.
Financing foreign trade (both import and export)
Facilitating remittance (both local and foreign)
Providing various information, guidance and suggestions for promotion of trade and
industry keeping in view of the overall economic development of the country.
Providing agency services.
2.5. TARGET CUSTOMERS

Due to the Predecessor Companys involvement investment-financing sector of the country
the bank inherited its top corporate customers. Moreover the bank is involved in import trade
financing. Bulk importers of consumer durable, food grains industrial raw materials are its
customers. The bank has financed in textile and apparels sectors. The bank has a trend of
choosing customers from diversified groups. The bank has first class customers in the
construction sectors involved in high-rise building, heavy construction and roads and high
way construction.
2.6. DEPOSIT
Shahjalal Islami Bank Limited accepts deposits on the basis of Mudaraba in the following
types of accounts, and pays profit, like that of dividend in these accounts, except Alwadia
Current Account.
The relationship between banker and customer is not debtor-creditor relationship of
conventional banks. The depositor is a partner in business with Shajalal Islami Bank Limited.
Customers' deposit their fund in the following types of Accounts:
1. Mudaraba Short Notice Deposit Account Deposit of the bank at the end of the year 2010
was TK. 67,961.24 million, which was more than deposit of 2009. From 2006 to 2010 bank
deposits has been increased than that previous year. This is happen because increasing
confidence of customer to NCCBL inspires people to make more and more deposited to
NCCBL.
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Year
Taka (In Millions)
2006
28,147.34
2007
34,901.77
2008
46,904.66
2009
53,900.00
2010
67,961.24
Table: (Deposit 2006-2010)
Figure: (Deposit 2006-2010 in millions)
2.7. CREDIT
In line with the policy guideline issued by the Central bank from time to time, the bank
formulates its own credit policy keeping it flexible to accommodate changes that are taking
place. At present, several credit schemas are on the offer, which received quit well response
from the customers and may help the bank to expand its customer base. The bank also
engaging in syndication with other banks for allowing large loans converging Bangladesh
banks rules and regulation.
Year
Taka (In Millions)
2006
24,678
2007
32,688
2008
46,333
2009
50,388
2010
63,230
Table: (Loans & Advance 2006-2010)
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Credit (Loan and Advance) of the bank at the end of the year 2010 was TK.63,230 million,
which was more than the previous year. Credit investments of bank are increases as increases
in the deposit amount.
Figure:
(Loans
&
Advance 2006-2010 in millions)
2.8. PRODUCTS AND SERVICES OF NCC BANK LTD

PRODUCTS:
DEPOSIT PRODUCTS
LOANS & ADVANCE
Current Account
Savings Bank Deposit Account
Special Notice Deposit (SND) Account
Term Deposit Account
Premium Term Deposit Account
Instant Earnings Term Deposit Account
Special Savings Scheme
Special Fixed Deposit Scheme
Money Double Program
NFCD
RFCD
CARDS
Working Capital Financing

Commercial and Trade Financing
Long Term (Capital) Financing
House Building Financing
Retail and Consumer Financing
SME Financing
Agricultural Financing
Import and Export Financing
Debit Card (Visa Electron, Proprietary)

Credit Card (Local, International and
Dual)
Special Interest rate on Savings and Term

Deposits
Wage Earners Welfare Deposit Pension Scheme
Loans for Real Estate
Advance against Regular Remitter
REMITTANCE
Services:
TRESURY SERVICE
REMITTANCE SERVICE
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BROKERAGE HOUSE
Member, Dhaka Stock

Exchange Ltd.
Full Service Depository
Participant
Primary Dealer of
Govt. Approved Securities
More than 330 Financial

Institutions all over the
World.
12 reputed Exchange Houses
covering major Locations of
our expatriates convenience.
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2.9. BRANCHES
CHAPTER 3
SWOT ANALYSIS
3.1. SWOT ANALYSIS
Both manufacturing and service oriented business organizations start to possess some
weaknesses as time elapses. The weaknesses of an organization can be turned into
opportunities if recognized on time. Moreover, overlooking any threat may result in loosing
valuable business opportunities. For this reason, an assessment of every business organization
is required to judge the performance from the aspects of its strength, weaknesses, opportunity
and Threat (SWOT) analysis of the Bank is as follows:
3.2. STRENGTHS
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The Bank provides quality service to the clients compared to its other
contemporary Fully computerized accounts maintenance.
Money counting machine for making cash transaction easy and prompt.
In SJIBL Bank SWIFT is being used for foreign trade related operations like letter
of credit, fund transfer, guarantee, etc with optimum security.
Well decorated and air conditioned facilities.
SJIBL has a well-diversified pool of human resources, which is composed of
people with high academic background. Also, there is a positive demographic
characteristic- most employees are comparatively young in age yet mature in
experience.
SJIBL provide ATM debit card and nonstop banking facilities.
competitors.
Experienced bankers and corporate personal have formed the management of the
bank which formulates the core business strategies.
Some services of the bank are automated which attracts large number of clients.
For instance, the bank provides Automated Teller Machine (ATM) services in
several locations.
The bank will very recently introduce on line banking which will enable it to
automate all of its operations. At present, several banking functions are performed
by computers. The bank is also a member of SWIFT (Society for Worldwide
Interbank Financial Telecommunication) Alliance Access which enables the bank
to exchange critical financial messages swiftly and cost effectively.
The bank has earned customer loyalty as organizational loyalty.
NCCBL has already achieved a goodwill among the clients that helps it to retain
valuable clients.
Dependent on fixed deposits.
Limited Market Share.
Absence of an ungraded website.
Lack of setting arrangement for the waiting customers.
Limited branch network.
Sometimes it seemed to me that charges and other fees are very high compared to
other private banks. It frequently creates customer dissatisfaction.
Some officials dealing with retail products have not been as a professional as a private
bank does require.
Sometimes the Customer Service Officers were so busy that it creates delay to the
customer service. And at the end of the day the closing were also delayed.
Most of the time there were problem with the ATM machine. In ATM, It sometimes
remained out of order, some time out of cash and sometimes customer face the
problem of cash and credit capture.
Charges of statement or certificates are very high.
Delegation of authority is centralized which makes the employee to realize less

responsibility. Thus, the employee morale is deteriorated.
The credit proposal evaluation process is lengthy. Therefore, sometimes valuable
clients are lost and the bank becomes unable to meet targets.
No substantive use of Annual Confidential Report (performance evaluation form)
to reward or to punish the employee. Hence, the employees become inefficient.
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3.3. WEAKNESSES
The portfolio of the bank is not that much diversified because it invests major
portion of its fund on Government securities.
The bank does not go for rural banking. But rural people are bankable which
NCCBL get from the activities of the NGOs.
The bank lacks aggressive advertising and promotional activities to get a broad
geographical coverage.
The bank has only a few ATM booths but not in mention able places. So, the scope
of the use of ATM card is limited.
The bank is burdened with a lot of mid and lower level employees due to doing
the banking function manually. its not only increases the operating costs but also
consumers time as well as lesson customers satisfaction.
Compared to its competitors the bank dose traditional activities.
A remarkable portion of the total human resources is inefficient.
The bank does not have any research and development division.
3.4. OPPORTUNITIES
Technical support to small Scale industries (SSI) in order to enable them to run
their enterprises successfully.
SME and Agro based business.
Besides, the Bank is to provide full range of commercial banking services.
The bank can introduce more innovative and modern customer services to better
survive in the competition. For example, the bank can introduce credit cards and
go for merchant banking.
The bank can offer micro credit business for individual and small business.
The bank can diversify its portfolio by introducing new sector.
Many branches can be opened to reach the Banks services in remote locations.
The bank can recruit experienced, efficient and knowledgeable workforce as it
offers attractive compensation package and good working environment.
3.5. THREATS
Number of potential competitors in home and abroad is increasing day by day.
Restless political condition in Bangladesh, such as Strike, Boom blast, etc. threats
the prosperity of Bank.
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The common attitude of Bangladeshi clients to default.

Multinational banks with various attractive means of providing commercial
banking services can take the banks lucrative clients away.
Opening the recent permitted new bank, without implementation of the needed
reforms, could lead the unethical competition and horse-trading in the countrys
sector.
Local competitors can also capture a huge market share by offering similar
products and services provided by the bank.
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The most thinking threats of the banks come from the competitors. The bank has a
chance to lose its market share to the competitors if it dose not take necessary
action.
Bangladesh Bank sometimes require Private Commercial Banks(PCBs) to be
abide by such rules and regulations which is not suitable for every commercial
banks.
CHAPTER 4
DATA ANALYSIS & FINDINGS
4.1. ANALYSIS PROCEDURES
By using following methods, I have made an analysis about the Customer Satisfaction and
the Employee Satisfaction of NCC Bank Ltd. Narayangonj Branch.
4.2. CUSTOMER SATISFACTION

According to the judgment in the case 'Lad Broke Vs Todd' "The relationship of Banker &
Customer begins as soon as the first cheque is paid in and accepted for collection and merely
when it is paid."
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The term 'customer' has not yet been statutorily defined. In the Section-4-104(1)E of Uniform
Commercial Code (US) defines A Customer as Any person having an account with a bank or
for whom a bank has agreed to collect items and includes a bank carrying an account with
another bank.
4.2.1. MEASURING CUSTOMER SATISFACTION

CUSTOMER
SATISFACTION, A BUSINESS TERM, IS A MEASURE OF HOW PRODUCTS AND SERVICES

SUPPLIED BY A COMPANY MEET OR SURPASS CUSTOMER EXPECTATION. IT IS SEEN AS A KEY
PERFORMANCE INDICATOR WITHIN BUSINESS AND IS PART OF THE FOUR PERSPECTIVES OF A
BALANCED SCORECARD.
Customer satisfaction = Perceived Performance Actual

Performance
In a competitive marketplace where businesses compete for customers, customer satisfaction

is seen as a key differentiator and increasingly has become a key element of business strategy.
There is a substantial body of empirical literature that establishes the benefits of customer
satisfaction for firms.
Organizations are increasingly interested in retaining existing customers while targeting noncustomers; measuring customer satisfaction provides an indication of how successful the
organization is at providing products and/or services to the marketplace.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of
the state of satisfaction will vary from person to person and product/service to
product/service. The state of satisfaction depends on a number of both psychological and
physical variables which correlate with satisfaction behaviors such as return and recommend
rate. The level of satisfaction can also vary depending on other options the customer may
have and other products against which the customer can compare the organization's products.
Because satisfaction is basically a psychological state, care should be taken in the effort of
quantitative measurement, although a large quantity of research in this area has recently been
developed. Work done by Berry, Brodeur between 1990 and 1998 defined ten 'Quality Values'
which influence satisfaction behavior, further expanded by Berry in 2002 and known as the
ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value,
Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front
line Service Behaviors, Commitment to the Customer and Innovation. These factors are
emphasized for continuous improvement and organizational change measurement and are
most often utilized to develop the architecture for satisfaction measurement as an integrated
model.
These tables below will show the percentage and actual data of people answering each
question with their most preferred choice.
(Total number of responds: 100)
Excellent
35%
40%
50%
47%
40%
39%
42%
43%
Good
32%
40%
25%
23%
30%
31%
29%
32%
Average
18%
10%
15%
20%
20%
18%
12%
16%
Fair
11%
10%
8%
9%
8%
9%
11%
7%
Poor
4%
0%
2%
1%
2%
3%
6%
2%
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Question no.
1
2
3
4
5
6
7
8
Question: 01
Staff was available in a timely manner.
Calculation of Mean, Median & t-test:

Midpoint
10
fd
c.f
0-20
Respon
d (f)
4
-2
-8
Fair
20-40
11
30
-1
-11
15
Average
40-60
18
50
33
Good
60-80
80100
32
70
+1
32
65
35
90
+2
70
100
Particulars
Class
Poor
Excellent
fd=8
3
Mean:
= 66.6
Median:
Size of
th observation =
= 50th observation. So Median lies in the
Class
0-20
20-40
40-60
60-80
80-100
d
4
11
18
32
35
class 40-60.
t-test:
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16
121
324
1024
1225
Applying the above value in the t-test,
Now,
v = n-1 = 100-1= 99. For v=99 (inf.),

The calculated value of t is less than the table value of t. the null hypothesis is accepted.
Page21
Its a well known fact that no business can exist without customers. its important to work
closely with the customers to make sure that the product or services create for them is as
close to their requirements as we can manage. 35% customer said confidently that the
Staff was available in timely manner. 32% agreed on that, & only 4% did not agree on
that.
Question: 02
Staff greeted you and offered to help you.
Calculation of Mean, Median & t-test:

Midpoint
10
fd
c.f
0-20
Respon
d (f)
0
-2
Fair
20-40
10
30
-1
-10
10
Average
40-60
10
50
20
Good
60-80
80100
40
70
+1
40
60
40
90
+2
80
100
Particulars
Class
Poor
Excellent
fd=11
0
Mean:
= 72
Median:
Size of
th observation =
= 50th observation. So Median lies in the
Class
0-20
20-40
40-60
60-80
80-100
d
0
10
10
40
40
class 40-60.
t-test:
Page21
0
100
100
1600
1600
Applying the above value in the t-test,
Now,
v = n-1 = 100-1= 99. For v=99 (inf.),
Page21
The calculated value of t is less than the table value of t. the null hypothesis is accepted.
As per mean method 72% customers agreed that staff of NCCBL is greetful & helpful.
Open Ended Questions:

1. What did you like best about our customer service?
Average Ans: Courteous & Friendly behavior of the staff.
2. How could we improve our customer service?
Average Ans: By becoming more updated & upgraded.
.
From the
survey
max
clients of
NCCBL,
has got
these
two
satisfacti
on levels
Figure: NCCBL Customers Satisfaction Pyramid
Page21
From the above discussion, we have found that most of the customers are lying on satisfied
level. So, it can be said that most of the clients of this bank are satisfied. But the clients
suggested increasing some facilities and advice to improve the service level. In these facilities
they mentioned that they need more loan facility. The clients also have given suggestion like,
to lower the interest rate, fast loan sanctioning process, to lower the mortgage charges etc. It
is necessary that the services that have been recommended by the clients can raise at least one
Page21
step further. At that time, the bank might get more clients than the current position, as the
highly satisfied clients recommend others to deal with this bank.
CHAPTER 5
Particulars
Authorized Capital
Paid up Capital
Reserve fund and other
Reserve
Equity Fund
Deposits
Loans and Advance
Investment
Import Business
Export Business
Operating Income
Operating Expenses
Operating Profit
Profit Before Tax
Profit After Tax
Retained Profit
Total Assets (excluding
contra)
Fixed Assets
Number of Branches
Number of Employees
Earnings per Share (EPS)
Dividend : Cash
Bonus (%)
Return on Equity (ROE) (%)
Return on Assets (ROA) (%)
Capital Adequacy Ratio
Nonperforming Loans as %
of Total Advances
Volume of Nonperforming
Loans
Amount of provision against
classified Loans
unclassified Loans
off-balance sheet exposure
Advance/Deposit Ratio (%)
2006
2007
2008
2009
2010
2,500.00
1,201.79
1,215.58
2,500.00
1,352.01
1,995.36
2,500.00
1,757.62
2,863.63
5,000.00
2,284.90
4,371.62
10,000.00
4,501.25
5,771.09
2,417.37
28,147.34
24,678.36
3,552.08
17,646.80
8,557.00
3,913.19
2,645.62
1,267.57
1,056.51
479.22
7.83
32,615.01
3,326.52
34,901.77
32,687.75
6,266.62
28,779.21
9,577.92
5,269.03
3,488.78
1,780.25
1,356.32
677.18
8.13
42,522.85
4,621.25
6,656.52 10,272.34
46,904.66 53,900.15 67,961.24
46,332.69 50,387.68 63,230.14
6,526.82
9,671.53 10,980.81
38,796.88 33,078.44 41,245.21
12,522.04 `11,903.72 16,125.52
7,417.64
9,333.03 10,157.99
5,054.15
6,195.33
6,057.79
2,363.49
3,137.70
4,100.20
1,788.96
2,686.49
3,248.23
882.28
1,719.50
2,371.68
5.34
46.47
388.11
57,365.52 65,937.49 83,554.18
353.71
48
1,118
3.99
10.00
12.50
19.82
1.47
9.78
4.95
522.00
53
1,230
5.01
30.00
20.23
1.59
10.61
4.17
775.31
57
1,400
5.01
30.00
21.76
1.54
10.61
4.14
849.10
65
1,496
7.53
47.00
28.49
2.61
13.55
2.84
1,191.49
79
1,622
5.33
32.00
25.35
2.84
10.91
2.27
1,212.26
1,353.31
1,902.58
1,420.57
1,425.28
523.58
644.11
912.90
720.22
742.80
282.09
388.78
456.07
509.67
740.31
51.69
109.41
111.93
174.93
87.68
93.66
98.78
93.48
93.04
(Source: Annual Report 2010)
Page21
PERFORMANCE OF THE BANK AT A GLANCE
GRAPHICAL PRESENTATION
Figure: Sectoral Distribution of Deposits- 2010
Page21
Figure: Sectoral Distribution of Advance- 2010
Page21
Figure: Deposits and Advance 2006- 2010 (in millions)
CHAPTER 6
CONCLUSION
6.1. CONCLUSION
Page21
From the practical implementation of customer dealing procedures during the whole period of
my practical orientation in Shahjalal Islami Bank Ltd, Motijheel Branch I have reached a firm
and concrete a conclusion in a very confident way. I believe that my realization will be in
harmony with most of the banking thinkers. It is quite evident that to build up an effective
and efficient considered as soon as possible. Besides, every bank has to survive amidst of a
large number of banks including local and foreign. Thats why to keep with expected profit
margin of the time being and for the future every bank should try heart and soul to please the
customers in a smart and trusty way. But quite regretful to mention that most of our bank face
decreasing profit trend due to switch over of their present customers to those foreign with
higher customers service facilities. So, timely decision for introducing sophisticated banking
instruments should be taken as early as possible. After taking effective and time defeating
measures regarding efficient employees and instruments will help the local office of Shahjalal
Islami Bank Ltd, Motijheel Branch to reach the principle of success with high profit and
productivity. A new bank they should be stronger in financial side as there is too competition
and new banks are growing up. If Shahjalal Islami Bank Ltd, Motijheel Branch adopts
professionalism within the frame work of Shariah, they will be able to earn handsome Halal
Profit and higher return to the depositors and share holders. Ultimately, public will get more
confidence on this type of Banking. Todays business is very competitive and complex. To
survive in the related sector the organization need competitive people and has to take some
effective policy. Every country must have a plan for important role in economic activities.
Bangladesh is no exception of that. Commercial Banks financial development and economic
developments are closely related. Thats why the private commercial banks are playing
significant role in this regard.
The National Credit and Commerce Bank Limited (NCCBL) is one of the best Bank in
respect of service, profitability and strength among the private commercial banks in our
country and also to play a catalyst role in the formation of capital market. National Credit and
Commerce bank Limited bears a unique history of its own. The Bank has set up a new
standard in financing in the Industrial, Trade and Foreign Exchange business. Its various
deposit and credit products have also attracted the clients-both corporate and individuals who
feel comfort in doing business with the Bank.
The National Credit and Commerce Bank Limited (NCCBL) is now been called a modern
bank that undertakes all its operations at an international standard. Over the years, NCCBL
has built itself as one of the pillars of Bangladeshs financial sector and is playing a pivotal
role in extending the role of the private sector of the economy.
6.2. FINDINGS
Page21
While working at NCC Bank Ltd, Narayangonj Branch and Shahjalal Islmi Bank Ltd Motijil
Branch, I have attained to a newer kind of experience. After the collection and analysis of
data, I have got some findings. These findings are completely from my personal point of
view. Those are given below:
NCC Bank Limited has already achieved a high growth rate accompanied by an
impressive profit growth rate in 2010. The number of deposit and investment are also
increasing rapidly.
NCC Bank Limited has already established a favorable reputation in the banking
industry of the country. It is one of the leading private sector commercial banks in
Bangladesh. The bank has already shown a tremendous growth in the profits and
deposits sector.
NCC Bank has an interactive corporate culture. The working environment is very
friendly, interactive and informal. And there are no hidden barriers or boundaries
while communication between the superior and the subordinate. This corporate
culture provides as a great motivation factor to the employees.
They face troubles with those clients who have not any knowledge in banking
transactions and banking rules.
From the clients view introducer is one of the problems to open an account. It is
general problem to all commercial bank.
NCC Bank has own training Institution for its employees, so they dont require to
train them from other training Institutions.
The number of branches and ATM Booths are not sufficient to cover the country.
The bank does not go for rural banking, but rural people are bankable.
Proper documentation rules sometimes create serious problems for the clients.
The portfolio of Bank is not that much diversified because it inverts major portion of
its fund on Government securities.
There are limited scopes to deal women entrepreneurs and professionals for making
investment by women interpreters.
Sometimes investment operations of NCCBL are hampered due to increase, dishonest,
indirect, hypocritical nature of people.
The Bank has disbursed a highest amount of investment in urban areas and tiny
amount of investment in rural areas of Bangladesh.
The bank mostly invests in the industrial and commercial sectors.
Employees are not enough efficient & smart which the other private bank has.
The web site is not up to date comprising with the other organization in the industry.
Advertising & Promotional activities are not satisfactory.
6.3. RECOMMENDATION
Page21
I have the practical experience in SJIBL for only three months. Shahjalal Islami Bank Ltd
introduces a new dimension of business among the local bank in the financial market of
Bangladesh in Retail Product Management. But in the complex business environment and
diversified business world these products cannot meet the customer needs. Today, customer
classes are vibrant and it is difficult to keep the customers without an appropriately designed
and also is not properly market driven. Developing a market driven product management
system is essential for any company if the company would like to win the competitive
condition and would like to survive in futuristic competitive market setting. In this regard,
following specific recommendations are forwarded for the development of product
management of Shahjalal Islami Bank Ltd.For the probable solutions of the identified
problems ensure better progress to NCC Bank in future, some necessary steps are
recommended bellow on the basis of collected data, observation, expert staffs opinion and my
knowledge and judgment.
NCC Bank should give more attention to advertisement for creating more attraction
among its customers, which is helpful to collect more deposits and increase
investments scope. That's why bank should give emphasis on public relation, emarketing; generate word of mouth and referrals.
The entire department should be well informed regarding their goals and objectives. It
is essential to execute company objective into individual target.
Job description should be clarified and proper training facilities should ensure to
improve the performance of bottom line management.
The bank has the provision of internship but there is no organized program for
internship. So they should organize programs for internship.
BIBLIOGRAPHY
BOOKS:
1. Shahjalal Islami Bank Ltd., Annual Report, 2011, Dhaka.
2. Levin, Richard I. and Rubin, Davids, Statistics for Management, Publisher,
publication.
3. The Daily Amardesh, 17-03-2010, Dhaka.
4. The Daily Financial Express, 17-03-2010, Dhaka.
5. www.shahjalalislamibank.com.bd.
6.
7. Block. B Stanley & Hirt A Geoffrey, Foundation of Financial Management,
Tenth Edition, McGRAW-HILL
8. Gordon. E & Natarajan. K, Banking Theory, Law and Practice, Eleventh
Edition, HIMALAYA PUBLISHING HOUSE, p. 180, 181.
9. Prof. Mina M Shahjahan, Financial Management, Fourth Edition, S. N.
PUBLICATIONS
WEBS:
http://www.nccbank.com.bd
http://www.bb.org.bd
http://www.dsebd.org
http://www.bankinfobd.com
http://www.crab.com.bd
http://www.docstoc.com
http://www.bracepl.com
http://www.stockbangladesh.com
http://www.scribd.com
OTHERS:
Page21
Annual Report of NCC Bank Ltd. 2010

Annual Report of NCC Bank Ltd. 2009
Annual Reports of other Schedule Banks
Some Articles, Journals, News Stories, Regular Circulars, Working Papers,
Office Files etc.
Page21

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Term Paper

Department of Finance & Banking

Banking System in Practice: A NCC Bank Perspective

Tejgaon College, Dhaka

Banking System in Practice: A NCC Bank Perspective

Department of Finance & Banking

Banking System in Practice: A NCC Bank Perspective

Tejgaon College, Dhaka

Banking System in Practice: A NCC Bank Perspective

Department of Finance & Banking

Banking System in Practice: A NCC Bank Perspective

Tejgaon College, Dhaka

Tejgaon College, Dhaka

Department of Finance & Banking

Subject: Submission of Term Paper

Banking System in Practice: A NCC Bank Perspective

Banking System in Practice: A NCC Bank Perspective

Banking System in Practice: A NCC Bank Perspective

Banking System in Practice: A NCC Bank Perspective

1.2. RATIONALE OF THE STUDY

Banking System in Practice: A NCC Bank Perspective

banking services and products. So as an Internee I thought of having special knowledge on

1.3. OBJECTIVES OF THE STUDY

1.3.1 General Objective:

1.3.2 Specific Objective:

To study existing bankers customers relationship.

1.4. METHODOLOGY OF THE STUDY

1.5. SCOPE OF THE REPORT

1.6. LIMITATIONS OF THE STUDY

Banking System in Practice: A NCC Bank Perspective

Banking System in Practice: A NCC Bank Perspective

2.4. FUNCTIONS OF THE BANK

2.5. TARGET CUSTOMERS

Banking System in Practice: A NCC Bank Perspective

Figure: (Deposit 2006-2010 in millions)

Banking System in Practice: A NCC Bank Perspective

Advance 2006-2010 in millions)

2.8. PRODUCTS AND SERVICES OF NCC BANK LTD

LOANS & ADVANCE

Working Capital Financing

Debit Card (Visa Electron, Proprietary)

Special Interest rate on Savings and Term

Banking System in Practice: A NCC Bank Perspective

Member, Dhaka Stock

More than 330 Financial

Banking System in Practice: A NCC Bank Perspective

Banking System in Practice: A NCC Bank Perspective

Dependent on fixed deposits.

Limited Market Share.

Absence of an ungraded website.

Lack of setting arrangement for the waiting customers.

Limited branch network.

Delegation of authority is centralized which makes the employee to realize less

Banking System in Practice: A NCC Bank Perspective

The common attitude of Bangladeshi clients to default.

Banking System in Practice: A NCC Bank Perspective

4.2. CUSTOMER SATISFACTION

Banking System in Practice: A NCC Bank Perspective

4.2.1. MEASURING CUSTOMER SATISFACTION

SATISFACTION, A BUSINESS TERM, IS A MEASURE OF HOW PRODUCTS AND SERVICES

Customer satisfaction = Perceived Performance Actual

In a competitive marketplace where businesses compete for customers, customer satisfaction

Banking System in Practice: A NCC Bank Perspective