Internship Report - Consumer Credit Scheme, Customer Satisfaction and Customer Perception in The Context of Prime Bank Limited

Ref: PBL/CU/271
January 20, 2011

Dhaka
To Whom It May Concern
This is to certify that Jahirul Islam a Student of M BA

( Ma rk et i n g S t u d i e s and In t e rn at i on al Ma rk et i ng) Ex am
R ol l : 2 00 9/ 46 , U n i ve rs i t y of Chittagong has completed his
internship in Prime Bank Limited, Motijheel Brnach, Dhaka from the 20 t h
November, 2010 to 20 t h January, 2011 . He was regularly present during
the above period.
During the period of internship program he was attached with

different departments of Prime Bank for gaining practical
experience.
I wish him every success in future.
_________________________
(Mr. Md. Muzammel Hossain)
Senior Vice President & Head of Branch
Prime Bank Limited
Motijheel Branch, Dhaka.
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Letter of Submission
Dated: 27th January, 201

DR.A.F.M.AOWRANGAZAB
Professor
Department of Management Studies.
University of Chittagong.
Subject: Letter of submission of the report of MBA internship program
Dear Sir,
With much pleasure I would like to inform you that I have successfully completed my 2
months internship program (20th April, 2011 to 20th July, 2011) at Prime Bank Limited,
Motijheel Branch, and Dhaka. During this Internship program I gathered information
from the organization especially “Consumer Credit Scheme, Customer
Satisfaction and Customer Perception in the Context of Prime Bank
Limited”. During this period I have come to know actually how banks specially Prime
Bank carryout their business of banking. I have had exposure in general banking
activities within this period.
Throughout this exhaustive Internship program I tried to put my sincerest effort to collect
the most reliable and complete information about the present banking system of Prime
Bank Ltd.
I have tried my best to comprehend and translate my knowledge in writing this report.
My effort will be rewarded only if it can help you to understand the operational
procedures of Prime Bank. It will be my pleasure if you call me for any query regarding
this report.
Thanks for your friendly co-ordination to make the process success.
Sincerely Yours
…………………………….
(Md.Mizanur Rahman)
Exam Roll: 2009/25
Class Roll: 14604
Session: 2008-2009
Department of Management Studies
University of Chittagong.
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Preface
Each MBA student of the Chittagong University will have to submit an Internship Report
in partial fulfillment of his MBA program. The student can have an opportunity to
interact with the real business world that can then assess, judge and analyze things from
their own viewpoints and perspective with this internship assignment. Throughout my
internship program I have tried to realize these objectives in totality.
The actual goal of this assignment was to reveal a true picture about the
lending procedure of the banking sector. I first collected knowledge browsing various
published papers, booklets, brochures and annual reports and thereby collected some raw
materials i. e. secondary data on the service packages of the Bank. Then I further
collected needed primary data related to the assignment objectives through questionnaire
and observational survey from the Prime Bank Limited and its training institute.
I tried to acquaint myself with the real business world and made an attempt to
understand its complexities with theoretical knowledge during this program. While
preparing this report, I also had some first-hand knowledge about how analyze data
collected from the diverse sources.
I always tried my best to present the report in such a way that it may benefit
the organization and other interested researchers in future.
Acknowledgement
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No report is the work of only its author. I couldn’t possibly thank all of those people who
have contributed a lot to prepare this report. They’re of course very special people who
can’t go without mention.
First of all, I would like to express my gratitude to Almighty Allah to give me the
opportunity to complete my MBA Program, Internship program and gives me knowledge
and patience to successfully complete the report within the stipulated time.
Internship program is an integral part of MBA course. Every MBA student was deputed
to different organizations to learn something within the pre-stipulated time by observing
these organizations’ daily practices. In this regard, my internship program was arranged
at Prime Bank Limited, Motijheel Branch with the deliberate counseling of Sagib
Kumar Ghosh, Associate Professor, Department of Marketing Studies &
International Marketing, University of Chittagong. My heartiest gratitude goes to
him for his enthusiastic guidance and consideration during the entire phase of the study
which made possible for me to prepare this report. His suggestions and comments were
really a great source of spirit to make the report a good one.
I am appreciative to my honorable teachers whose spontaneous participation encourage
and enrich our knowledge.
I express my gratitude to Mr. Md. Muzammel Hossain, Senior Vice President & Head of
Branch for giving me the excellent opportunity to do my practical orientation in his
branch.
I offer my sincere gratitude and thanks to Mr. Shamim Ahmed, SEO of this branch who
gave special attention to me from the very beginning and whenever I went him in the
branch.
I am also grateful to Mr Md.Tareq Ahmed, head of SME of the Motijheel Branch,

Prime Bank Limited, who supervises me in the daily operating activities of the bank and
advise me regarding the subject of my report.
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I am also grateful to all of the executives of Motijheel Branch of Prime Bank
Limited. Specially to Mrs. Marhuma Akter-PO & Credit Incharge , Mr. Salahuddin-
MTO, Mr Harun or Rashid-MTO, Mr. Habibul Islam-AO, Shafayet Ullah-PO, Mr
Ashanul Huda-AO,Mr. Nurul Momen-Officer and M.A.A Awal Chy.-Officer who helped
me all the time and made me understood whenever I faced any difficulties. I am quietly
pleased to their amicable & frankly behavior which not only attracted me but also
encouraged me and also helped me to change my bad notion regarding the complexity
and conflicting organizational behavior.
There were some people, whose co-operation gave the report more shape. They are the
customers and all other staffs of the Branch. They helped me a lot and their assistance
cannot be expressed with some words. I am very grateful to them and I want to say
special gratitude to them.
I mention the excellent working environment and the positive group behavior of this
Bank, which helped me tremendously, observe the banking activities, work with the
staffs and stay long for two months without any hesitation.
However, to my best, I tried very hard and worked sincerely on this report to make an
informative one. At last, my sincere apology goes to the readers for my conceptual and
printing mistakes, if there is any.
Executive Summary
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Banking system of Bangladesh has gone through three phases of development-
Nationalization, Privatization, and Lastly Financial Sector Reform. Prime Bank Limited
(PBL) has started its journey as a private commercial bank on April 17, 1995
While running practical orientation with Prime Bank Limited, Motijheel Branch as an
intern, I was placed in three vital departments. These were:
 General banking
 Credit
 Foreign exchange
General banking is the starting point of all the banking operations. It is the department,
which provides day-to-day services to the customers. It opens new accounts, remit funds,
issue bank drafts and pay orders etc. Provide customer through quick and sincere service
is the goal of the general banking department.
Bank credit is an important catalyst for bringing about economic development in a

country. Without adequate finance, there can be no growth or maintenance of a stable
economy. Prime Bank Limited being one of the largest private commercial bank of the
country has some prejudice to finance directly on priority basis to agriculture, industry
and commerce sector for strengthening the economic base of the country. Hence, it is
very clear that, PBL plays an important role to move the economic wheel of the country.
Providing different sorts of credit and schemes like loan against imported merchandise
(LIM), Trust Receipt, Bank Guarantee, Industrial Loan, IT loan, Consumer Credit
scheme, Executives Car Loan, Marriage loan, Education Loan, House Finance is the main
spring of the credit department.
Foreign exchange department plays significant roles through providing different services
for the customers. Letters of credit is the key player in the foreign exchange business.
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With the globalization of economies, international trade has become quite competitive.
Timely payment for exports and quicker delivery of goods is, therefore, a pre-requisite
for successful international trade operations. To ensure this purpose PBL transmit L/C
through SWIFT (Society for Worldwide Inter bank Financial Telecommunication) to the
advising bank.
Prime Bank Limited is providing different sorts of LC services like L/C opening,
lodgment, BLC (bills under letter of credit), Back to back LC etc. Foreign exchange
department also provide foreign remittance like traveler’s cheque, foreign demand draft,
endorsement of US $ in passport.
There were some problems identified from the viewpoint of customers as well as from
PBL’s, which are finding out by informal discussion with the customers and officers of
Loan and Advance department. Problems faced by customers were based on the area of
limited items, loan duration, lower loan limit, lengthy procedures and excessive terms
and conditions. I have tried to give some recommendation as my personal observation to
alleviate these problems.
There is nothing in the world without mistakes. However, Prime Bank Limited is known
to all in our country for their one stop customer service, efficient officials and as a fast
Generation bank.
Objective of the Study
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Every task has a particular aim. A man without aim can hardly reach the destination. This
internship program was also directed to some particular targets. The main objective of the
study is to grasp and idea about small and medium enterprise financing and investment
activities provided by the Prime Bank Limited. So the objectives of the study conducted
in the Prime Bank Limited are mentioned as under:
The main objectives:
 Exploring different retail products of Prime Bank Limited.
 To identify and differentiate the products and their features under CCS offered by
PBL .
 To identify and make comparison banking service of PBL with a leading one.
 To know the customer satisfaction and perception regarding CCS of PBL.
The supporting Objectives:

1. Identify the goals and objectives of the bank.
2. To focus the growth and development of prime bank limited.
3. To identify the various services by general and investment department.
4. To know about the modern services offered by the prime bank limited.
5. To know the working environment and organizational behavior of the bank.
6. Develop and propose some new ways in which service quality can be enhanced
to attract customers.
Scope of the Study
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The scope of the study is only related to prime bank Limited, Motijheel Branch, Dhaka.
This report focuses on the overview of the organizational structure, background,
functions and mainly focal point on “Consumer Credit Scheme, Customer
Satisfaction and Customer Perception in the Context of Prime Bank
Limited.”
Hence the working area of my internship was only Motijheel branch of the bank. I have
tried to acquire knowledge about the overall banking system and worked in different
sections.
While running practical orientation with Prime Bank Limited Motijheel Branch, I was
placed in three vital departments. These were:
 General banking department
 Credit department
 Foreign exchange department
Each of the above areas is critically analyzed in order to determine the efficiency of
prime Bank Ltd. Motijheel Branch, Dhaka.
Methodology of the study
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The detail methodology of the research has been described on the basis of research
design, sampling design, data collection method and analysis. From the view point of
function it is a descriptive as well as exploratory research because a theoretical analysis
was done on the features of the CCS which was followed by a comparison with the
performance of a leading international commercial bank operates in Bangladesh. The
case study was conducted only on Motijheel branch of PBL and Motijheel branch of
SCB.
Data
Primary: Primary data were collected through a structured questionnaire
prepared in light of the study. It had open-ended questions, close-ended questions
and ranking scale for opinion aspects. Informal interviews were conducted with
the officers of the credit division on both the banks. That is based on
questionnaire it was a survey through structured questionnaire and based on
communication it was survey through human interactive media or personal
interview.
Secondary: Secondary data included products and their features, business
volume, recovery rate etc. were collected from annual reports, retail credit manual
of Prime Bank limited, credit circular 2005, 2006, 2007, 2008 ,2009 & websites
etc of both the banks.
Printed Materials: This study is mostly based on secondary data which may
include the newspapers, magazines, journals, directories, annual reports,
Bangladesh bank publications, Prime Banks Annual Report etc.
Internet: Internet was another major secondary source that we have used to
collect related information to conduct the study.
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Methods
Qualitative research, broadly defined, means "any kind of research that produces findings
not arrived at by means of statistical procedures or other means of quantification.” From
the view point of data nature it is both qualitative and quantitative research. Non-
probability sampling was used to conduct questionnaire survey. And from the consumer
credit loan listing, respondents were chosen on a convenient basis. Because of time
constraint and their busy schedule, it was not possible to collect data from all the
respondents. I chose the Standard Chartered Bank for comparison on judgmental basis.
As it is a pioneer of CCS in banking industry and as well as the market leader, that is why
I chose it for getting a better picture.
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Limitations
Although it has been tried on the level best to make this report based on facts and
complete information available, there are some limitations that are unavoidable. The
scope of the report is limited to the opinions of the customers and the officials of PBL of
Motijheel Branch and Standard Chartered Bank Limited of Motijheel Branch. This report
highlights the comparison regarding CCS between PBL and SCB to get an idea of the
overall scenario of consumer banking not any other issues. Some barriers and limitations
were faced while gathering information. These are as follows:
 It was very difficult to collect the valuable information since confidential facts.
 To prepare this extensive report the period was short.
 The study is limited to only one branch of both the banks.
 The raw data available in the organization’s database management system was also
not properly organized.
 The officers were very busy with their daily work; they could hardly provide little
time to discuss with them.
Introduction:
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General banking is one of the major sections of any branch of any bank. The services of
general banking are cash receive and payment, account opening, DD, Pay order, TT issue
and clearing. The success of a bank depends a lot on the success of general banking. In
Prime Bank all the general banking activities are performed under the control of GB
(General Banking) head. GB head monitors the daily activities and solve the problems of
general banking department.
In fact, bank operates with the people’s money. And this process starts with the General
Banking department. The activities of the General Banking Department of PBL are
divided into the following categories:
Account Opening Section,

Deposit Schemes Section,
Local Remittance Section,
Clearing Section,
Collection Section,
Cash Section,
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Cash section
Computer section Clearing section
General banking
A/C opening
Fig:
Major Division of General Banking of Prime Bank Limited.
Cash Section
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Cash is a liquid asset. It is cost incurring it itself non-earning and risky. So, banker should
know how manage the cash properly to turn it into earning asset. Its management is
varying important form the following point of view:
 Safe and security cash
 Proper utilization of cash
 Cash counter service development.
The following are steps related to cash handling at branch level:
Cash payment to customers:

Cash is paid to the customer or to the person to whom the bank is legally responsible to
do so.
Procedure of Cash Payment:

 The customer places cheque, pay order, money order receipt or any debit voucher
to the cash counter.
 The officer receives the cheque and check the customers account balance at the
computer
 If the customer has available balance in his account then the officer will debit the
customer’s account (the amount which is written on the cheque the account).
 The tracer number must be written down by the officer while giving posting on
the computer
 The signature of the customer will be verified at the signature verification
software
 If the signature matches then disbursement of the cheque takes place.
Minimum requirements of cheque in different accounts:

■ The date of the cheque must not more than 6 months older.
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■ The availability of the signature of the customer.
■ The amount and the amount written in words must be same.
■ Signature of the bearer of the cheque on the opposite side of the cheque
■ For making payment of more than Tk. 50000.00, the operation manager should be
informed.
■Cash payment is made within 3.00 pm.
Cash Received from Customer:

Another important activity of this department is cash receive from the customer.
Customers deposit money to pay bills, insurance premium, and monthly deposits of the
scheme.
Cash Receive Procedure:

 The customer has to fill the credit voucher or deposit slip properly and place to
the cash deposit counter
 The receiving officer will receive the money and the voucher and check the
deposit slip and will make posting of the transaction in cash receive register and
he will credit the customer account.
 If all the requirements are fulfilled then the process will be completed.
Important Requirements:
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Cheque no., cheque date, signature of the depositor must be there on the cash credit vou
Customer name and account no is mandatory to be valid cash deposit voucher
Cash receive will go on till 5.00pm
Cash received after 3.00pm is not posted in the computer. It will be posted on the next d
Cash balancing
All employees related to must ensure the balancing of cash has done correctly on daily
basis. For balancing of cash following works have to perform:
 All cash registers must be totaled and duly written in words and signed.
 Balanced them with each other
 All cash registers must duly counter signed by checking officer.
 Balance the register with the physical cash.
 Pass voucher if any surplus or short cash
 Prepare cash position memo.
 Write cash valance book.
 Ensure accounting of balance is correct.
In the computerized branch hard copy” Day End” position is to be signed bay cash in
charge and officer.
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Checking/Security of Cash in hand:
Check the strong of cash:

Non-issue
Reissue.
Mutilated notes
Forge notes.
 Note packing slip-signature, recounting signature & stamp.
 Count the loose cash including coin.
Count the bundles & check them also.
 Check patty, Stock of Prize Bond & Late paid & received cash.
Account Opening section

Procedures for Opening Various Accounts:
1. For opening an account, at first the prospective account holder will apply for
open an account by filling up respectively account opening form, nominee form
and KCY form.
2. The prospective account holder should be properly introduced by the
following:-
An existing customer of the bank
Officials of the bank not below the rank of assistant
officer
A respectable person of the locality who is well known
to the manager or authorized officer.
3. Signature of the prospective account holder in the account opening form and on
the specimen signature card duly attested by the introducer.
4. Then the authority will allocate a number for the new account.
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5. The account holder then deposit the “initial deposit” by filling up a deposit to
open an account in Prime band limited is Tk.1000/- or more if needed. After depositing
the initial deposit the account is considered to be opened.
A)Savings Account:
1. Accounts opening application Form duly filled in and signed by the public,
2. Get the necessary documents:
a) National certificate/ ID Card b) Photographs,
3. Approve the application,
4. Give the Account number, Deposit slip, and Cheque-book,
5. Receive the initial deposit money.
B) Current Account:
a. For Individuals:
 Filling out the application form with two copies of passport size photograph
duly attested by the introducer.
 One copies of passport size photograph of nominees duly attested by the A/C’s
holder.
 Copy of passport/Driving License/Nationality Certificate.
 Incase of CD A/C: Copy of Trade license.
b. For a joint account:

 Filled out application form starting about the name and address of the firm.
 Copy of Passport/Driving License/Nationality Certificate both the partners.
 Copy of Partnership deed.
 Copy of Trade license.
 Two copies of passport size photograph (in case of partnership, photos of both
the partners are required).
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 One copies of passport size photograph of nominees, in case of partnership both
of partners duly attested by them.
 Endorsement of an account holder of the same branch (for proprietorship firm).
c. For a companies in case of Public/Private, Societies/Club:

 A/C opening form to duly complete.
 Specimen signature card with signature of the authorized officials with Power of
Attorney (if any).
 Copy of the Certificate of Incorporation (attested copy).
 Copy of Certificate of Commencement of business.
 Copy of Memorandum and Articles of Association.
 List of directors under the signature of the Chairman.
 Copy of latest financial statement.
 Copy of Trade license.
 Certificate copies of a Resolution of the Board regarding the execution of the
papers and conduct of the account.
Original copies of these documents are also enclosed for verification purpose, which are
later returned.
a) Trade License c) Partnership deed if necessary
b) Photographs, d) TIN certificate
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Deposit Section
Bank is an institution where the clients keep their surplus deposits are invested in trade,
commerce, and industries on term basis i.e. short, medium, & long term.
Deposit come from business, housewives, institutions and small income group etc. who
has excess or available money. It may be said that though banks are performing social
responsibilities by securing both small and large depositors money and also helping
industrial, social and economical development, but like others, prime objectives of the
institutions is maximization its profits by optimum utilization of resources.
Prime bank limited offers the following types of accounts and formalities, in addition to
the previous:
a. Current Deposit (CD) Account.
b. Saving Deposit (SD) Account.
c. Fixed Deposit Receipt (FDR) Account.
d. Short Term Deposit (STD) Account.
e. Special Saving Scheme (SSS).
f. Special Deposit Scheme (SDS).
g. Premium Term Deposit (PTD).
h. Instant Earning Term Deposit (IETD).
a) Wage Earners Welfare Deposit Pension Scheme (WEWDPS).
Some of the important deposits are briefly presented below-
a)Short-term Deposit Account:

STD accounts are purely a time deposit account. The formalities for opening of this
account are similar to those required for current account. The account runs like an
ordinary current account with the exception that seven days notice is required to be given
to the bank before each withdrawal interest is paid at prescribed rate. Generally
Government, semi-Government, Autonomous Bodies etc maintain STD account. Prime
bank limited offers attractive rate of profits to its short-term deposits. This rate is 6.00%
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per annum. Minimum balance of TK. 2v lac in case of private deposit and Tk 10 lac
incase of collection account.
c) Trade License d) Partnership deed if necessary,
e) TIN certificate
b) Fixed Deposit Receipt:

No introductory reference is required furnished for opening fixed deposit account. The
bank receives deposits for a fixed period ranging form 1 month to 12 months. For
opening a fixed deposit minimum Tk. 10000 is taken as deposit. Prime bank limited
offers attractive following rates of profits to its fixed deposits, effect form 1 st February,
2006.
4. Give the Account number, Deposit slip,
5. Receive the fixed deposit amount in cash or in cheque,
6. Give cheque containing future date and future value.
Category of Deposits Existing rate of interest Revised rate of
interest(for more then
5crore)
FDR for 1 month 7.50% 7.50%(unchanged)
FDR for 3 month 11.50% 12.00%
FDR for 6 month 11.50% 12.00%
FDR for 12 month 12.00% 13.50%
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c) Monthly benefit savings scheme:
c) Tk10000 or multiple the amount but not more than Tk. 2500,000.
5. Cheque for principle amount at future date.
d) Double Benefit Deposit Scheme:
c) Tk. 25000 or multiple the amount but not more than Tk2500,000.
5. Cheque of double of deposit amount at the day after six year.
e) Education Savings Schemes:
a) National certificate/ ID card b) Photographs,
c) Tk. 50000 or multiple the amount but not more than Tk500,000.
4. Give the Account number, and Deposit slip,
5. Give the savings instruments.
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f) Prime Millionaire Scheme:
c) From Tk4570 to not more than Tk12465 monthly.
g)Contributory Savings Scheme:
c) Size monthly deposit from Tk500 to not more than Tk25000 monthly.
h) Lakhopati Deposit Scheme:
a) National certificate/ ID card b) Photographs,
c) Size monthly deposit from Tk250 to not more than Tk2400 monthly.
4. Give the Account number, and Deposit slip
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i)House Building Deposit Scheme:
c) Deposit a fixed amount of money monthly.
4. Give a Account number, and Deposit slip,
5. Give a certain amount of money as loan after the deposit period to the account holder.
Cheque Book Issue:

By the cheque a customer can withdrawal his money from his account. Usually anew
cheque book is issued after the confirmation of the customer’s address but if the customer
has a loan account with the credit division then he can get that before address
confirmation. The front desk of the bank deals with the procedure of issue of cheque
book.
The process of Cheque Book Issue:

 Customer will fill up the cheque requisition slip by writing down the account
number, name of the account holder, address and signature of the account holder
and present to the passing officer.
 The signature of the account holder will be verified on the software
 If the signature is similar then the cheque book serial number is posted by the
officer at the computer
 After that the officer prepares the cheque book with the account number and
branch seal.
 The issued cheque book posted in the proper cheque book issue register and will
receive the sign of the customer after handing over the cheque book to him.
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Stop Payment:
 Receiving the application from the account holder for stop payment of cheque
 Receiving the GD copy
 Verification of account holder’s signature
 Posting the stop payment procedures online and maintaining the registers
Cheque for withdraw money:

 Receive the cheque with valid date and account holder’s signature,
 Check the availability of money in respective account,
 Pay the money
Cheque for collection:

 Receive the cheque with valid date and account holder’s signature,
 Sent the cheque to the clearing house for collection,
 Finally credited the customer’s account
Account Section
Introduction:
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The accounts department is the most delicate and the most confidential department in a
bank. The main task of this department is to record all kinds of transactions of the branch,
confirming accuracy, preparing statements etc. Under the computerized banking system,
today the clean cash statement and the supplementary statements in party ledger vouchers
are printed of the computer.
Functions:
The functions of the account section are:

 Preparing of supplementary Sheet.
 Preparing of subsidiary ledger.
 Maintain cash-cum-day book.
 Maintain Transfer book.
 Posting in various ledgers such as Income, Expenditure & General Ledger etc.
 Preparing of Statement of daily affairs.
 Preparing of Statement of daily inter branch transactions account.
 Prepare of weekly statement for Bangladesh Bank.
 Daily posting of voucher issued by all departments.
 Preparing of salary register & salary disbursement register.
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Local Remittance Section
The major function of commercial Banks is mobilization of fund. Clients need to remit
money from one place to another for their business or other purposes. Banks fulfill this
need of customers by means of remittance service. Money can be remitted domestically
or internationally, which known as local remittance and foreign remittance. Basically,
Remittance means transmission of money from one place to another.
Modems of Remittance:
There are three ways of transferring fund domestically. The modes of transferring funds
are:
A) Pay- Order (PO).
B) Demand Draft (DD).
C) Telegraphic Transfer (TT).
A) Payment Order / Pay Order (P.O)

This is an instrument issued by the branch of a bank for enabling the Customer/Purchaser
to pay certain amount of money to the order of a certain person/firm/organization/office
within the same clearing house area of the pay order-issuing branch.
For issuing a pay order, the client is to submit an application to GB in the prescribed
form. This form should be properly filled up and signed. For issuing pay order PBL
charges commission on the following rate—
# For Tk. 1 to 10,000, the commission is Tk.10.
# For Tk. 10,001 to 1,00,000, the commission s Tk. 15.
# For Tk 1,00,001 to 5,00,000, the commission is Tk. 50.
# For Tk 5,00,001 to 10,00,000, the commission is Tk. 75.

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# For Tk 5,00,000 above, the commission is Tk. 100.
Issue of Pay Order (PO)

 Name of the issuing bank.
 Date.
 Contract number.
 A/C payee seal.
 Payees name.
 Amount in figure and word.
 Signature of two authorized official.
Procedure of Issuing Payment Order:

 Obtain P.O. application from duly filled in and signed by the
Purchaser/application.
 Receive the amount in cash/transfer with commission amount.
 Issue Pay Order.
 Enter in Pay Order register.
Payment of Pay Order:
The pay order is presented to the bank either through clearance or for credit to the client’s
account. While payment, relative entry is given in the pay order register with the date of
payment.
Cancellation of Pay Order:
The following procedure should be followed for the cancellation of the pay order:
 The client should submit a written request for canceling the pay order attaching
therewith the original pay order.
 The signature of the purchaser will have to be verified from the original
application form.
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 Manager’s prior permission is to be obtained before refunding the amount of the
pay order.
 Cancellation charge is to be recovered from the applicant and only the amount of
the pay order less cancellation charge should be refunded. Commission recorded
for issuing of the original pay order should not be refunded.
 Then the officer should write “cancelled” on the pay order
 The original entries should be reversed with narration.
 Cancellation of the pay order should also be recorded in the register.
B) Demand Draft (D.D):

This is an instrument through which customer’s money is remitted to another
person/firm/organization in outside the clearinghouse area from a branch of one bank to
an outstation branch of the same bank or to a branch of another bank (with prior
arrangement between that bank with the issuing branch). This is an order instrument in
which the issuing branch gives instruction to the payee/drawer branch to pay certain
amount of money to the order of certain person/firm/organization. Commission, vat and
postage are charged for issuing DD. Sec. 85 (a) of Prime Bank Limited Act. A DD is an
order to pay money drawn by one office of the bank upon other office to the same bank
for a sum of money payable to order on demand. The features of DD are:
 It is a negotiable instrument
 It is drawn one office upon other office to the same bank
 It is payable on demand
 It is payable to payees or according to his order
Example: - To transfer money from Chittagong to Dhaka.
Procedure for issuing D.D.:

 Obtain D.D. application from duly filled in and signed by the
purchaser/application.
 Receive the amount in cash/transfer with prescribed commission and postage
amount.
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 Issue the D.D. duly in and signed by the authorized officer.
 Insert test number (where applicable)
 Enter in the D.D. issue register.
 Issue advices to the payee branch.
Procedure for payment of D.D.:
 Examine the D.D. by verifying the signature, test number, serial number etc.
 Enter the D.D. payable register.
 Verify with the IBCA number.
 Pass necessary vouchers.
Cancellation of Local Draft:
The followings are followed while canceling a D.D.—
 The purchaser should submit a written request for cancellation of the D.D.
attaching therewith the original D.D.
 The signature of the purchaser will have to be verified from the original
application form.
 Manager’s prior permission is to be obtained before refunding the amount of
draft.
 Cancellation charge is to be recovered from the applicant and only the amount of
the draft less cancellation charge should be refunded. Commission charge, posted
charge etc. recovered for issuing the DD. should not be refunded.
 The original entries are to be reversed giving proper narration. An IBDA for the
cancelled D.D. should be issued on the drawee branch.
 Cancellation of D.D. should also be recorded in the D.D. Issue Register.
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C)Telegraphic/ Telephonic Transfer (T.T):
This is a mode of transfer of customer’s money from a branch of one bank to another
branch of the same bank through telegraphic/telephonic message.
Procedure for issuing T.T.:
 Obtain T.T. application from duly filled in and signed by the

purchaser/application with full A/C particulars of the beneficiary.
 Receive the amount in cash/transfer with prescribed commission, telephone/telex
and postage amount.
 Prepare T.T. message inserting the test no.
 Enter in T.T. issue register.
Procedure for payment of T.T.:

 Note the message T.T. and verify the test number and confirm the T.T.
serial no. etc. is ok.
 If ok make entry in to T.T. payable Register
 Pass necessary vouchers for payment.
For quickest remittance customer use this means to transfer money from one place to
another place. Within 10 minutes beneficiary will get the amount.
Online Branch Banking Section

Prime Line:
The Bank has set up a Wide Area Network (WAN) across the country to provide online
branch banking facility to its valued clients. Under the Scheme, clients of any branch
shall be able to do banking transaction at other branches of the bank.
Under this system a client will to be able to do following type of transactions:

 Cash withdrawal from his/her account at any branch of the Bank
irrespective of location.
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 Cash deposit in his/her account at any branch of the Bank irrespective of
location.
 Cash deposit in other's account at any branch of the Bank irrespective of
location.
 Transfer of money from his/her account with any branch of the Bank.
Any amount can be deposited or transferred under Prime Line. In the system, however, at
present there is a limit for cash withdrawal through bearer or by account holder himself.
Terms & Conditions of Online Branch Banking Se

ONLINE BRANCH BANKING SERVICE is designed to serve its valued clients.
Under this system, you shall be able to do the following type of transactions:
 Cash withdrawal from your account at any branch of the Bank.

 Deposit in your account at any Branch of the Bank.
 Transfer of money from your account to any other account with any
Branch of the Bank.
Transaction Limit
01. Maximum ceiling of cash withdrawal by self is Tk. 10, 00,000/- (ten lac) only per
transaction.
02. Maximum ceiling of cash withdrawal by third party (bearer) per transaction is below
Tk............... Only (please mention the limit you wand to place).
03. Cash deposit/transfer by online transaction is unlimited.
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Online Transaction Membership Fee
Membership fee of Tk. 50/- per month for the Online Branch Banking Service.
Charges for Online Transaction
01. There will be no charge for transaction within the city where the account is
domiciled.
02. Fee Tk. 50/- will be realized from the customer’s account for each remote transaction
(inter-city) for amount upto Tk. 1,00,000 (one lac).
03. Fee at the rate of 0.075% will be realized from the customer’s account for each
remote transaction of amount more than Tk. 1,00,000 (one lac).
Who can get this service?
The Clients who has account in prime bank or who will open account in prime bank and
would be interested to maintain substantial deposits in Savings, Current or STD accounts,
will be eligible to get Prime Line Service.
How one can get this service?
Intending and eligible clients have to apply in prescribed application form to their branch
(where account is maintained) to get the online service from the bank. The client should
submit two copies photographs and signature cards along with the application form. To
avail the Prime Line service, no charge should be paid for online transaction within a
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locality where the account is domiciled. But charges should be paid by the customer for
inter city online transaction.
When an account will be activated for online?
Within 15 days from the date of submission application a account will be activated for
online service
One Stop Utility Services Scheme
Like any other country of the world, the people living in the urban areas of our country
lead a very busy life. Time is very valuable to them. Despite this, they are to waste their
valuable time at the counter of different Banks and other Institutions for payment of their
monthly bills of different utility services like Electricity, Telephone, Water, Gas etc.
They, as such, face enormous difficulties for payment of their monthly bills in time. Such
inconveniences of the urban people can be removed by making an arrangement to collect
all the bills of various utility services at One Point.
Scope of Services
With this end in view, Prime Bank Limited has introduced a Scheme entitled “ONE
STOP UTILITY SERVICES SCHEME”. The scheme is designed to provide all the
required services to the customer in making payment of their following bills on their
behalf from the counter of the Bank:
 To pay Electricity Bills
 Cash deposit in his/her account at any branch of the Bank irrespective of

location.
 Cash deposit in other's account at any branch of the Bank irrespective of

location.
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Transfer of money from his/her account with any branch of the Bank.
Any amount can be deposited or transferred under Prime Line. In the system, however, at
present there is a limit for cash withdrawal through bearer or by account holder himself.
Clearing and Bills Section

Clearing and bills section is an important section of General Banking. This is the section
through which branch has to clear it’s inter branch and inter bank transaction. Customers
do pay and receive the collecting branch the system is known as IBC.
Clearing:
As far as safety is concerned customers get crossed cheque for the transaction. As we
know crossed cheque cannot be encased from the counter, rather it has to be collected
through banking channel i.e. clearing. For example, a client of Prime Bank received a
cheque of another bank, which is located within the clearing range; deposit the cheque in
his account at Prime Bank. Now Prime Bank will credit his account and collected it.
Though the amount is credited in the customers account but he will not get the money
until he cheque is honored.
Types of Clearing:
1. Outward Clearing: Outward clearing means when a particular branch receives
instrument drawn on the other bank within the clearing zone and those instruments for
collection through the clearing arrangement is considered as outward clearing for that
particular branch.
2. Inward Clearing: When a particular branch receives instruments which on
themselves and sent by other member bank for collections are treated as inward
clearing.
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3. Clearing house
Clearing House is a place in the Central Bank where different banks come to settle
their interrelated liabilities.
Clearing House System:

The mechanism of working at a Clearing-House in general is as follows:
 Every Bank of the locality, which is a member of the clearinghouse, prepares a Bank-
wish list of cheques after receive from customers and drawn on different Banks of the
locality.
 An officer, in charge of clearinghouse, goes to the clearinghouse in the morning with
the cheques and their list. He delivers the cheques to the officials of the respective
banks. Similarly, he also receives the cheques drawn on his Bank from the officials of
the other banks.
 The official of each bank computerizes the final balance, payable or receivable by his
Bank after taking into account the various amount of receipt and payment.
 The official return of their respective Bank to meet again in the afternoon to return
any dishonored instruments to the officials of the respective Banks.
 The final settlement is effective by the supervisor of the clearinghouse by debiting or

crediting, as the case may be, the accounts of the respective Banks as maintained with
the clearinghouse.
Outward Bills for Collection (OBC):
Customers deposit cheque, drafts etc. for collection, attaching their deposit slip.
Instruments within the range of clearing are collected through local clearinghouse. But
the other, which is outside the clearing range, is collected through OBC. A customer of
Prime Bank, Khatungonj Branch, is depositing a cheque of Sonali Bank, Dhanmondi
Branch. As a collecting bank PBL , Agrabad Branch sends IBCA along with cheque to
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PBL , Main Branch. Prime Bank, Main Branch will collect it by Prime Bank, Motijheel
Branch, the agent. They will forward the bill to that particular (Motijheel) branch. OBC
number given the on the forwarding letter.
Inward Bills for Collection (IBCA):

In this case bank will work as an agent of the collection bank. The branch receives a
forwarding letter and the bill. Next steps are:
 Entry in the IBCA register, an IBCA number given.
 The instrument is sent to clearing for collection.
An IBCA is dispatched in this regard.
If dishonored in this case the instrument is returned to the collecting branch along with
return Memo indicating the cause of dishonored.
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Chapter Three
An Exploratory Study on Consumer Credit Scheme, Customer
Satisfaction and Customer Perception in the Context of Prime
Bank Limited.
3.0. Description
Now days every bank uses different attractive credit schemes to attract valuable
customers. Consumer credit is a loan offered to individuals for some given purposes and
is to be repaid by equal monthly installments. This kind of loan is made without security.
In this case the bank makes a lump sump payment to the borrower which is given for a
fixed period at an agreed rate of interest. Repayments may be made in installments or at
the expiry of a certain period. A loan once repaid in full or in part cannot be withdrawn
again by the borrower unless the banker sanctions a fresh loan (Jaffe 1997). Unsecured
loans without guarantee i.e., clean advances are guaranteed by banks to parties enjoying
high reputation and having sound financial position. As unsecured loans carry higher risk
than secured debts, the rate charged on them is quiet a bit higher (Anderson 1993).
Consumers Credit Scheme is very popular in most of the developed and developing
countries of the world. This is designed to finance the fixed income group for buying
essential commodities to be repaid by installment over a period in accordance with
agreement. It fills a variety of needs: financing the purchase of an automobile or
household appliance, home improvement, traveling, and so on. As Bangladesh is one of
the poorest countries of the world per capita income of our country is very low so the
majority of our population is forced to live a sub-standard life. The middle class and the
discipline professionals cannot afford to buy essential utility products. As such, they
cannot raise their living standard to an expected level. Different bank has introduced the
“Consumers Credit Scheme” to serve the needs of the limited income group and improve
their quality of life for achieving the objective of the Bank. Consumers Credit Scheme is
gradually becoming very popular in our country. Commercial banks buy many consumers
installment loans from car dealers and department stores and also participate in all
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aspects of consumer credit transactions both as originators and holders. The portion of the
consumer credit market attributable to banks has greatly increased due in large part to
widespread use of bank credit cards. (Anderson 1993).
3.0.1 Current Credit Scheme Products in PBL
The basic Product Program Guideline (PPG) has been developed for eleven retail lending
products. (However, in future, the Bank may like to combine some of these loan products
in terms of homogeneity of customers and end user funds towards effective portfolio
management.) The current products are:
1. Household Durable Loan 7. Travel Loan
2. Car Loan 8. Marriage Loan
3. Doctors Loan 9. CNG Conversion Loan
4. Advance Against Salary 10. Hospitalization Loan
5. Any Purpose Loan 11. Swapna Neer
6. Education Loan
3.0.2. Customer Segment for PBL retail loan
The persons having confirmed/permanent job in any one of the following organizations
and age between 20 to 50 years are eligible for availing of Credit facilities under the
Scheme. Government Organization; Semi-Government and Autonomous Bodies; Banks,
Insurances Companies or any other Financial Institutions; Armed Forces, B.D.R, Police
and Ansar; Private Organizations having corporate structure; Teachers of Universities,
Colleges and Schools; Besides the above, Professionals like Doctors, Engineers,
Architects, Lawyers, Journalists, Chartered Accountants; Self Employed Business
Executives are also eligible for enjoying credit facilities under this scheme subject to the
providing of Bank Guarantee or Insurance Guarantee for the amount of Credit.
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3.0.3. Security/Collateral and Legal Documents of Retail Loan
Though giving retail loan is to segmenting risk but PBL follow some security procedures
to minimize the risk. These are: Hypothecation over the purchased assets, post dated
cheques based on the loan tenor, personal guarantee from two persons, duly filled in the
loan application form terms and conditions signed, demand promissory note, letter of set-
off, irrevocable letter of authority to repossess the asset, letter of offer with full terms and
conditions stated therein and duly accepted., letter of guarantee.
3.0.4. Disbursement Mode
After loan approval vendor will receive a facility confirmation letter. On the basis of that
customer will open a SB account with the branch nominated by the customer. Then
he/she will deposit the amount of down payment, service charge including VAT, risk
fund, stamp cost. After that the vendor will be paid the total value of the item in the form
of Pay Order.
3.0.5. Verification of Personal Details and Quotation, Substantiation of Income and

Other charges
Details of an applicant always verified by third party/internal assessment officers before

an approval are accorded. PBL’s efficient employee also verifies the following things:
Letter from employer with details of employment and salary, Borrower and Guarantors
(if any) details (addresses–both present and permanent, all telephone numbers of
residence, office & mobile no.), Personal net-worth statement, Car quotation, Referee
details (if any), Bank statement. Beside these, all of the following original/true copies of
original documents are accepted for the purpose. Bank Statements for minimum last 6
months, Personal Net-Worth Statement, Any other document that may stand as a proof of
41
income such as last tax return, deed of tenant agreement etc. For retail loan some
additional fees and service charges also taken in PBL.
3.1. Household durables Loan
Household durable loan will be sanctioned against guarantee of third parties acceptable to
the bank or pledge of FDR, Saving instrument of Banks and assignment of salary where
applicable.
3.1.1 Customer Segment, Purpose and Age Limit
Any Bangladeshi individual who has the means and capacity to repay the loan can apply
for this loan. This loan is given for: Motor Cycle, Personal Computer, Photocopier / Fax
Machine, Small PABX System, Television, Mobile Phone Set, Refrigerator, Audio-Video
Equipment, Other Home Electric Appliance, Furniture, Any Other Household Durables.
The Age Limit to obtain this loan is 21 years to 50 years at the time of maturity of loan.
3.1.2. Minimum Service, Minimum Income, Loan Size, Interest Rate
Like other retail product, PBL segments customers in to salaried customers and self
employed customers. For salaried individual, minimum service length of 1 year and must
be a confirmed employee, for self employed individual, a business record of minimum 3
years TK .10, 000 for individual salary and Tk. 25,000 for businessman. Tk 10,000 for
salaried individuals and Tk. 15,000 for businessman (who are residing in his/her own or
family residence). Maximum loan Size‘s limit is Tk. 500,000 and loan amount will not
exceed 90% of the quotation value. The interest rate is 16%.
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3.1.3. Loan Limit and Period of Loans
Name of the Item Loan Limit Duration of the Loan

Motor Cycle Tk. 1,00,000 2 years
PC/Lap Top Tk. 1,00,000 2 years
Photocopier/Fax Tk. 1,00,000 2 years
Other Item/Furniture Tk. 5,00,000 3 years
3.1.4. Required Documents
The document need for loan these are: Employer Certificate for Service Holders,
Photocopy of Trade License for Businessmen, Photocopy of Tin Certificate, if any, Bank
Account Statement of last six months, Photocopy of Passport, Telephone (T&T) Bill, if
any.
3.1.5. Security
The security need for loan these are: Two personal guarantees, Undated Cheques.
3.2. Car Loan
Car Loan will be sanctioned against Registration of the Vehicle in the name of the Bank.
Instead of down payment, the Customers shall have option to avail loan against their
FDR or any other savings instruments up to 90% of the loan amount.
3.2.1. Customer Segment, Purpose and Age Limit
Any Bangladeshi individual who has the means and capacity to repay the loan is the
targeted customer for car loan. This loan is given to purchase of Car, Jeep, Station
Wagon, Any other vehicles for own use, Pick up Van, Cover Van, Bus/Truck for
Corporate Bodies (own use), Ambulance for Corporate Bodies / Medical Professionals.
43
Minimum age for achieving this loan is 25 years and maximum age is 50 years at the
time of maturity of loan.
3.2.2. Minimum Income, Loan Size, Loan to Price Ratio
PBL segments its customers for giving loan, they segments according to income of the
customer. The minimum income is TK.20, 000 for salaried individuals and Tk.40, 000 for
businessman. Loan size is Tk. 20, 00,000 for both Brand new & Reconditioned Cars.
Finally, loan amount will not exceed 90% of the vehicle price.
3.2.3. Interest Rate, Maximum Term of Loan and Repayment
The interest rate is 16% and 13% provided the loan is secured at least by 90% in the form
of Fixed Deposit. For Customer ease the Maximum term of loan is 5 years for brand new
cars and 4 years for reconditioned cars. Repaying method of this loan is to give equal
Monthly Installments based on the tenor of the loan.
Duration of the
Name of the Item Loan Limit
Loan
New Vehicle Tk. 40,00,000 5 years
Recondition Vehicle Tk. 15,00,000 4 years
Bus/Truck for Corporate Bodies for own use only Tk. 40,00,000 5 years
Photocopy of Trade License for Businessmen, Photocopy of Tin Certificate, if any, Bank
Account Statement of last six months, Photocopy of Passport, Telephone (T&T) Bill, if
any.
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3.2.6. Security
The security need for loan these are: Undated Cheques, Registration of the vehicle in the
name of the Bank.
3.3. Doctors loan

Any Bangladesh citizen who is a graduate in Medical Science / Dentist / Eye /
Allopathic/ General Parishioners desiring to set up chamber, medical store with necessary
medical equipments and to become self-employed have the opportunity to take this loan.
3.3.1. Customer Segment, Purpose and Age limit
Doctor’s can take this loan for small scale purchase of different medical equipments,
machineries, tools or other relevant items to support professional needs (e.g. run or set up
a clinic/hospital/dispensary). Minimum age for achieving this loan is 25 years and
maximum age is 55 years at the time of maturity of loan.
3.3.2. Minimum Service, Minimum Income, Loan Size
PBL segments two types of doctors those are salaried individual and self employed
individual. For salaried individual, must be confirmed employees of an established
organization. For self employed individual, a professional experience of minimum 2
years. Minimum Income: TK .10, 000 for salaried individuals and Tk. 25,000 for self
employed individuals. For General Practitioner, Loan Size is Tk. 500,000 and Tk.
1000,000 for specialist doctors i.e. holding post graduation degree. PBL always verify
that, loan amount not to exceed 90% of the instrument/item price.
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3.3.3. Interest Rate
To get loan from PBL, a doctor submits: duly filled in the loan application form terms
and conditions signed, demand promissory note, letter of set-off, irrevocable letter of
authority to repossess the asset, letter of offer with full terms and conditions stated
therein and duly accepted and Letter of Guarantee. Interest rate for doctor’s loan is 16%.
Maximum term of this type of loan is 5 years that they have to pay in equal monthly
Installments.
Type of Customer Loan Limit Duration of the Loan

General Practitioner MBBS/BDS Tk. 5,00,000 4 years
Specialized Doctor Tk. 10,00,000 5 years
Photocopy of Tin Certificate, if any, Bank Account Statement of last six months,
Photocopy of Passport, Telephone (T&T) Bill, if any, Attested Photocopy of the
Certificates of the last degree and BMA membership certificate.
3.3.7. Security
As mentioned earlier that, giving retail loan is to segmenting risk but PBL follow some
security procedures in giving Doctor’s loan to minimize the risk. The security need for
loan these are: The ownership of medical equipments to be purchased must be
hypothecated to the Bank under hire purchase mode, two personal guarantees
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3.4. Advance against Salary
This scheme is for salaried Bangladeshi person in Govt. /Semi govt. /Autonomous
bodies/Multinational Co./Banks/Insurance/Financial Inst. /Educational Inst. with
confirmed 3-years service ahead. A Letter of introduction including name, fathers name,
designation, date of birth, date of joining, place of posting, date of last promotion, date of
retirement, basic salary, total emolument, total in PF, take home salary etc. will be
required.
This loan is given for to meet the financial need for any acceptable purpose. At the time
of maturity of loan minimum age limit is 21 years to maximum 50 years.
3.4.2. Minimum Income, Loan Size
Loan limit is 8 times of gross salaries that have Salary A/C with us and 6 times of gross
salary that have not Salary A/C with us subject to highest Tk. 3.00 lac.
3.4.3. Interest Rate
.Interest Rate is 16% p.a., Maximum Term of Loan 2 years with Equal Monthly
Installments. Disbursement Mode is same like other retail product such as car loan, any
purpose loan etc. Debt Burden ratio maintained at minimum 33% at all times. Other
charges are Service Charge: 1% on loan amount + 15% VAT on Service Charge, Risk
Fund: Nil and Stamp Charge is: Tk. 320/-
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Salaried Person Tk. 3,00,000 2 years
Legal Documents procedure is same like previous retail lending product procedure. The
document need for loan these are: Employer Certificate, Photocopy of Tin Certificate, if
any, Bank Account Statement of last six months, Photocopy of Passport, Telephone
(T&T) Bill, if any
3.4.6. Security
Security/ Collateral are same like previous retail lending product procedure. The security
need for loan these are: Undated Cheques, Lien on Service benefit of the concerned
employee from the employer
3.5. Any purpose Loan

This loan is given for miscellaneous personal financial requirements but the customer has
to declare the purpose of the loan but submission of supporting document is not
mandatory.
3.5.1. Purpose, Age limit and Interest Rate
Purpose may be as follows: House renovation, Marriages in the family, Advance rental
payments, Hospitalization or other emergency medical needs, Trips abroad, Purchase of
miscellaneous household appliances, Purchase of personal computers, Purchase of
electronic items, Purchase of furniture, Other acceptable purpose not mentioned above
but no facilities can be granted for purposes that are legally in contradiction with the law
48
of the land. The age limit to get this loan is Minimum age is 25 years and Maximum age
50 years at the time of maturity of loan. .Interest Rate is 16% p.a.
3.5.2. Minimum Income, Minimum Service and Loan Size
For salaried individual, minimum total service length of 2 years, Govt. employees must
be confirmed on job TK .12, 000 for salaried individuals and Tk. 25,000 for businessman
(for rented people), Tk. 10,000 for salaried individuals and Tk. 15,000 for businessman
(who are residing in his/her own or family residence).Tk. 10,000 for employees of
Government, Semi government and Autonomous bodies. Loan Size is Tk. 300,000.
Interest rate is 16% p.a; Maximum Term of Loan is 3 years with Equal Monthly
Installments.

The document need for loan these are: Employer Certificate; Photocopy of Tin
Certificate, if any; Bank Account Statement of last six months; Photocopy of Passport,
Telephone (T&T) Bill, if any
3.5.5. Security
The security need for loan these are: Undated Cheques and Lien on Service benefit of the
concerned employee from the employer.
3.6. Education Loan
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This scheme is for meeting the fund requirement for higher education of children of
salaried persons in Govt. /Semi govt. / Autonomous bodies/ Multinational
Co./Banks/Insurance/Financial Inst. /Educational Inst. with confirmed 3-years service
ahead and businessman having adequate cash flow.
This loan is for student and for employee. Student or students’ parents/ financial
guarantor must be eligible to repay the loan. This loan is given for educational purposes
like study in abroad or within the country. Only Bangladeshi people can apply for this
loan. Minimum age for loan application is 25 years Maximum age 50 years at the time of
maturity of loan. (Most of the time age limit and other things are applicable for student’s
parents).
3.6.2. Minimum Income, Minimum Service, Loan Size and Interest Rate
For salaried individual, minimum total service length of 2 years, Govt. employees must
be confirmed on job. Minimum Income is TK .12, 000 for salaried individuals and Tk.
25,000 for businessman (for rented people), Tk. 10,000 for salaried individuals and Tk.
15,000 for businessman (who are residing in his/her own or family residence), Tk. 10,000
for employees of Government, Semi government and Autonomous bodies. Maximum
loan Size is Tk. 500,000. Interest Rate is 15% (Reducing). Maximum Term of Loan is 4
years with Equal Monthly Installments. Disbursement Mode is same like other products.
And Debt Burden ratio maintained at minimum 35% at all times. Verification of Personal
Detail, Substantiation of Income a Substantiation of Income and other charges are just
like other Retail Products of PBL. .Interest Rate is 16% p.a.
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Salaried Person / Businessman Tk. 3,00,000 2 years
The document need for loan these are: Employer Certificate for Service Holders;
Photocopy of Trade License for Businessmen; Photocopy of Tin Certificate, if any; Bank
Account Statement of last six months; Photocopy of Passport, Telephone (T&T) Bill, if
any; Evidence thereof.
3.6.5. Security
The security need for loan these are: Undated Cheques and Two personal guarantees.
3.7. Travel Loan
This scheme is for meeting fund for travel purpose of salaried person in Govt. /Semi
govt. /Autonomous bodies/ Multinational Co./Banks/Insurance/Financial Inst.
/Educational Inst. with confirmed 3-years service ahead and businessman having
adequate cash flow.
This loan is given to those Bangladeshi citizens who can repay the loan to meet the
financial need for travel purposes. Limit of age is minimum 25 years and maximum age
50 years at the time of maturity of loan.
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For salaried individual, minimum total service length of 2 years and for govt. employees
must be confirmed on job. Minimum income is: TK .12, 000 for salaried individuals and
Tk. 25,000 for businessman (for rented people), Tk. 10,000 for salaried individuals and
Tk. 15,000 for businessman (who are residing in his/her own or family residence) and Tk.
10,000 for employees of Government, Semi government and Autonomous bodies. Travel
lone size of PBL is Tk.200, 000. .Interest Rate is 16% p.a.


3.7.5. Security
3.8. Marriage Loan
This scheme is to meet the fund requirement for marriage purpose of salaried person in
Govt. /Semi govt. /Autonomous bodies/ Multinational Co./Banks/Insurance/Financial
Inst. /Educational Inst. with confirmed 3-years service ahead and businessman having
adequate cash flow.
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Any Bangladeshi individual who has the means and capacity to repay the loan is the
targeted customer for marriage loan. Only people from Bangladesh could apply for this
loan. Purpose of this loan is to meet the financial need for marriage purposes. Age Limit
is Minimum 25 years to Maximum 50 years at the time of maturity of loan.
For salaried individual, minimum service length of 1 year and must be a confirmed
employee TK .10, 000 for salaried individuals and Tk. 25,000 for businessman (for
rented people) and Tk. 15,000 for businessman (who are residing in his/her own or family
residence). Loan Size is Tk. 300,000. Interest rate is 16% p.a. Security/ Collateral; Legal
Documents verification is same as other retail product. Maximum Term of Loan is 3
years and Repayment Method is Equal Monthly Installments like other products.

3.8.5. Security
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3.9. CNG Conversion Loan
This scheme is to meet the funds requirement for CNG conversion of vehicles for those
who are salaried person in Govt. /Semi govt. /Autonomous bodies/ Multinational
Co./Banks/Insurance/Financial Inst. /Educational Inst. with confirmed 3-years service
ahead, businessman having adequate cash flow and corporate Bodies.
This loan is given for converting vehicles from carbon based fuel to Compressed Natural
Gas system. Bangladeshi people from 21 to 50 years at the time of maturity of loan could
apply for this loan.
Minimum Service or length of business for salaried individual, minimum total service
length of 2 years, Govt. employees must be confirmed on job and for self employed
individual, a business record of minimum 4 years. Minimum Income is TK .12, 000 for
salaried individuals and Tk. 25,000 for businessman (for rented people), Tk. 10,000 for
salaried individuals and Tk. 15,000 for businessman (who are residing in his/her own or
family residence), Tk. 10,000 for employees of Government, Semi government and
Autonomous bodies. Loan size of CNG Conversion is Tk. 100,000. Interest rate is 16%
p.a. Maximum Term of Loan 1.5 years with.
54
Owner / Valid user of the vehicle Tk. 60,000 1.5 years

Corporate Bodies Tk. 1,00,000 1.5 years
Account Statement of last six months; Photocopy of Passport, Telephone(T&T) Bill, if
any; Photocopy of the Blue Book etc; Photocopy of the registration of the Vehicle
3.9.5. Security
The security need for loan these are: One or two personal guarantee from family member
(effective member i.e. spouse / father / mother / brother / earning son, Corporate
guarantee in the case of Company or as the case may be acceptable in the bank) and
Undated cheques in favor of the Bank covering the whole amount
3.10. Hospitalization Loan
Hospitalization loan will be provided for treatment purpose or surgery where

hospitalization is necessary. The loan shall be available for the salaried person, i.e.,
employee of the Govt. Organizations / Semi-Government Organizations / Autonomous
Bodies / Multinational Companies / Banks / Insurance Companies / Educational
Institutions / Corporate Bodies.
55
This loan is given those Bangladeshi people who can repay the loan to meet the financial
need for treatment purposes in the following hospitals/clinics of Dhaka and Chittagong.
(This list reviewed annually with corporate banking.). To get this loan minimum age limit
is 25 years to maximum age 65 years at the time of maturity of loan.
3.10.2. Minimum Income, Minimum Service, Loan Size, Interest Rate
Minimum Service/length of business for salaried individual, minimum total service

length of 2 years and Govt. employees must be confirmed on job. Minimum Income to
get this loan is TK .12, 000 for salaried individuals and Tk. 25,000 for businessman (for
rented people).Tk. 10,000 for salaried individuals and Tk. 15,000 for businessman (who
are residing in his/her own or family residence).Tk. 10,000 for employees of
Government, Semi government and Autonomous bodies. Loan size is up to Tk. 500,000.
Security/Collateral and Legal Documents procedure is same like other retail product.
Interest Rate for this loan is 16% p.a. Maximum Term of Loan is 2 years. This can pay
with equal monthly installments. Disbursement Mode procedure is same like other retail
product and debt burden ratio maintained at minimum 35% at all times. Verification of
Personal Details, Substantiation of Income and Other charges are same like other retail
product of PBL.
3.10.3. Name of Different Hospitals
(i) BIRDEM (ix)Bangladesh Medical

(ii) Holy family Hospital (xi) Sikder Medical
(iii) Central Hospital (xii) Ibne Sina Hospital
(iv) Monwara Hospital (xiii) Dhaka Renal Center
(v) Samrita Hospital (xiv) Gastro lever Clinic
(vi) Medinova (xv) Islami Bank Hospital
(vii) Comfort Diagnostic Center & Hospital (xvi) Lab Aid Cardiac Hospital
(viii) Metropolitan Hospital (xvii) National Heart Foundation
56
(xviii) CMH, Dhaka
(xix) Apollo Hospital
(xx) Medical Center, Chittagong
(xxi) Metropolitan Hospital, Chittagong
(xxii) Royal Hospital, Chittagong
(xxiii) Holy Crescent, Chittagong
(xxiv) Health Home, Chittagong
(xxv) Health Care, Chittagong
(xxvi) Poly Clinic, Chittagong
(xxvii) Nebedita Hospital, Chittagong
(xxviii)Niramoy Clinic, Chittagong
(xxix) Holy Health, Chittagong
(xxx) Sergiskop Clinic, Chittagong
(xxxi) CMH, Chittagon
57

The document need for loan these are: Employer Certificate; Photocopy of Tin Certificate, if
any; Photocopy of Passport, Telephone (T&T) Bill, if any.
3.10.6. Security
The security need for loan these are: Personal guarantee from an individual having means,
standing and social status acceptable to the bank and another from his/her family; undated
cheques in favor of the Bank covering the whole amount; Letter of Assurance from the Employer
/ Authority.
3.11. Swapna Neer

Any Bangladeshi (Singly or jointly with other co-owners/co-borrowers e.g. spouse/son) can get
this loan.
To be more specific the following group of people will be eligible for Prime Bank “Swapna
Neer” Loan: Salaried people: a) Employees of govt./Semi govt./Autonomous body (b)
Employees of financial institution, (c) Employees of different Public Limited Company/ Private
Limited company having Corporate Structure, (d) Teachers of any school/ college/ university.
Professional: (a) Doctor, (b) Engineer, (c) Accountants. Self-Employed: Businessman (in
business at least for five years). This loan is given for Purchasing apartment/ house (if old not
older than 10 years), Constructing new house, Taking over of House Building Loans from other
Banks/Non Banking Finance Institutions. Age Limit is up to 50 years (Repayment age). (At the
time of sanctioning loan, the age of the borrower as well as cash flow/repayment capacity of the
borrower should be such to ensure full adjustment of the loan within 50 years of age. However
Head Office may relax age of the borrower as and when deem fit but not exceeding 55 years.
3.11.2. Minimum Income, Minimum Service, Loan Size, Interest Rate, Loan Limit and
Period of Loans, Required Documents, Security
Loan amount, debt-equity ratio etc. shall be decided on a case to case basis considering location
of the project, prospect of rental income, repayment capacity, financial and social standing of the
customer, other source of income, size of family, income of the family members, other debts, age
of the borrower etc. However, the quantum of loan should be such to ensure monthly installment
size would not exceed 40% of the gross income or 80% of the residual income (after deducting
all expenses except present rental expense) which ever is lower. The Managing Director may be
authorized to sanction Prime Bank “Swapna Neer” Loan up to Tk. 50 lac (Taka Fifty lac) only.
Home Loan proposals were evaluated by the Housing Finance Unit, Head Office. Loan to Price
Ratio is at least 40% of the total cost of construction of home, at least 30% of purchase price of
new apartment/home and at least 50% of purchase price of old apartment/home and repairing
cost, if any. 5.8.1 Security, Legal Documents, Interest Rate etc For under construction apartment,
under supervision of Bank’s Panel Lawyer, a tripartite agreement signed among the customer,
the developer and Prime Bank Limited to the effect that the developer handovers property related
documents directly to Prime Bank Limited being the financer of the apartment. Subsequently, the
apartment will be registered mortgaged in the name of Prime Bank Limited. For Construction of
house: Registered mortgage of the concerned property and Registered IGPA to sell/foreclosure
of the mortgage property without intervention of the court. For Collateral bank collects,
Mortgage (Registered/ equitable) of any other property, Pledge of shares/securities and other
encashable securities, Lien on retirement benefits, Assignment of life insurance policy,
Guarantee from a person acceptable to the Bank. Bank collects collateral if it’s available, but in
absence of one collateral part customer has to pay other collateral for security. Legal Documents
of this loan are: D.P. Note; Housing Loan agreement; Letter of disbursement; Letter of authority
of the Employer to pay monthly installment by deducting from salary/ service benefit in case of
salaried person; Letter of installment and Land documents. Interest Rate for this loan is 16.00%
p.a. (Up to 7 years)with quarterly rests, 17.50% p.a. (for 7-10 years) with quarterly rests, 18.00%
p.a. (Over10 years) with quarterly rests.
Maximum Term of Loan
Particular Grace period Loan repayment period

(years)
(months)
Construction of new house 12-18 Up to 20
Purchase of new apartment under
construction 06-18 Up to 20
Purchase of new ready apartment/
house Upto 3 15
Purchase of old house/ apartment
(not older than 10 years) Nil 10
Remaining loan period with
Taking over loan Nil existing financer or 15 years
which ever is lower.
Source: Retail Manual of PBL
3.11.3. Disbursement Mode, Disbursement pre-condition, Debt Burden Ratio,
Substantiation of Income and Other charges
For purchasing apartment, Firstly, the customer shall pay the equity portion to the developer.
Later on, the remaining amount will be provided by the Bank. The customer will have to invest
the equity portion first for construction of building from the sanctioned loan. Bank’s Civil
Engineer will ascertain whether the customer’s equity is rightly invested or not. Any cost
overrun of the projected cost shall be bear by the customer. In Disbursement pre-condition the
subjected property should be insured for Fire, RSD, Flood, Cyclone and Earthquake. However,
obtaining Fire and Earthquake policy is mandatory. In Debt Burden Ratio (DBR %) the quantum
of loan shall be such to ensure monthly installment size would not exceed 40%of the gross
income or 80% of the residual income (after deducting all expenses except present rental
expense) which is lower. Proper substantiation of income is mandatory to get this loan. All or
any of the following original / true copy of original documents are accepted for the purpose.
Bank Statements for minimum last 6 months, Personal Net-Worth Statement, Any other
document that may stand as a proof of income such as last tax return, deed of tenant agreement
etc. Other charges are Service Charge1% on loan amount and Risk Fund: 0.50% on loan amount.
Chapter Four
Analysis
4.0. Differentiate between PBL and SCB in terms of Products and Features
I differentiate the products and features of Consumer Credit Scheme for both the banks in terms
of three criterions:
• Product portfolio
• Important product features
• Important documentation
Product Portfolio of PBL and SCB Regarding Consumer Credit Scheme

Different CCS Schemes of PBL and SCB
Prime Bank Limited Standard Chartered Bank Limited
1. House hold durable loan 1. Purchase of miscellaneous household appliance

2. Purchase of refrigerators
3. Purchase of personal computers
4. Purchase of furniture
5. Purchase of audio-video equipment
2. Any purpose loan 6. Purchase of office equipment/accessories
7. Office renovation
3. Home loan 8. Home loan
9. House renovation
10. Advance rent payment
4. Education loan 11. Education/professional training
5. Travel loan 12. Overseas trips

6. Marriage loan 13. Marriage in the family
7. Hospitalization loan 14. Hospitalization or other emergency medical needs
8. Car loan 15. Auto loan
9. CNG conversion loan
10. Advance against salary
11. Doctors’ loan
Form the table, it is seen that both the banks provide almost same products and cover almost all
the areas of the consumer credit sectors. However, PBL offers Doctor’s scheme that is not
offered by SCBL. Doctor’s loan usually does not fall into CCS. It is mainly a SME based
product. CCS provides loan only to meet the necessary items in the day-to-day life not for
business purpose. But they provide this loan to facilitate the doctors so that they can service the
patients better than earlier. Thus, they offer this loan under CCS 1% less interest rate and higher
maturity period than in SME sector. Different product features and services formulate different
perceptions among the customers. Like the education loan is provided by SCBL charges 18%
interest rate whereas charges 16% on it. Therefore, when people see this difference, they
obviously go for that bank which provides lower interest rate. However, for taking loan people
more concentrate on maturity, installment period, risk fund, processing fee, down payment etc.
When the customers are going to get the loan at first they seek out how flexibly they obtain the
loan; which bank provides lower interest rate, higher maturity period, flexible required
documents etc. These kinds of features drive a customer to compare among the banks regarding
to get a particular loan.
4.2. Important Product Features of PBL and SCB Regarding CCS
Prime Bank Limited Features Standard Chartered Bank

Limited
16% Interest Rate 18%
 Two personal Guarantees Security  One personal guarantee.

 No cash security is  No cash security is required.
 Required  1 Undated cheque for the
 Undated cheques entire amount.
 Post Dated cheques  Post-dated cheques.
60 Maximum Loan 60
Installment
4,000,000 Maximum Loan 4,000,000
Amount
 4 years. Maturity(max)  5 years
 In home loan it is 12year.  In home loan it is 15 years.
10% Down Payment Nil
1% Risk Fund Nil
1% Service Charge More than 1% usually 1.5%

Nil Early Settlement More than 1% of the rest
Fee amount also charge the interest
rate
Not provide Additional Loan Provide
Monthly Installment Paid Monthly
3 days Processing 2 days

Period
Important Product Features of PBL and SCB Regarding CCS

Interest rate formulates a vital factor in credit lending. Usually customers prefer to take less
interest credit by which they can enjoy the loan at ease. From the table we see that PBL provides
less interest rate than SCB. But people choose SCB not only because it is a pioneer in this sector
but also has created a strong image as of their outstanding services. Like they process the loan so
fast that they can provide the loan within 3 days whether PBL delivers the loan on 5-7 days.
Though in CCS, processing time is not a big deal but it gives a perception among the customers
as how efficient they are regarding their job and hence this perceptions turn into reliability.
Regarding security PBL is more conservative than SCB. They ask for two personal guarantees
whereas PBL charges only one. SCB does it because they provide the loan only to the reliable
person like in personal basis and having a high-income group usually starts from 30000+ income
group people. On the other hand, though PBL maintain a bit personal basis but they deal
maximum with mid income group people usually starts from12000+ income group people. They
provide loan on this risky segments because there is a huge potential customer in this segment.
But as it is a risky segment they concern more on security purpose. Hence, they judge the
guarantors in every point of view. On the other hand, SCB does not emphasize more on it as
they provide to a dependable person.
As far as security concerned, PBL also does not provide “Additional Loan” i.e. they do not give
further loan until the customers settle the previous loan assuring that their disbursed loan will not
turn into classified. Though they declared that, they do not take any cash security to disburse
loan but during delivery, they charge 10% down payment charge for the entire loan and 1% for
the risk fund. Even if it discourages the customer very much but they charge it for their security
intention. As SCB are more risk taker than PBL and have an abundant fund and specialized
monitoring team, they provide this facility to their customers.
Considering these reasons into the mind customers prefer to go to the SCB rather than PBL and
think that SCB are more flexible. However, PBL facilitates its customer not to charge the early
settlement fee. SCB charges this fee because they do not want to loose the amount that they get
for a particular period. This policy makes the customers disappointed about their services. On the
other hand, PBL do not charge this because their policy is to reinvest the money by giving the
loan to others and hence encourage the customers to settle the loan earlier.
4.3. Important Documents of PBL and SCB Regarding CCS
Required Documents
Prime Bank Limited Standard Chartered Bank
 Application form  Application Form.
 Employer certificate for service holder.  Salary Slip.
 Photocopy of trade license for business.  Copy of Trade License.
 Tin certificate.  Tax Identification Number (TIN)

certificate is required if the loan
amount BDT 5 lacs or 0.5 million &
above.
 Bank account statement of last 6months.  Bank Statement of last 6months.
 Demand promissory note.  Signed Demand Promissory Note.
 Letter of hypothecation.  Letter of Hypothecation over goods
purchased.
 Photocopy of the registration of the  If the applicant wants to repay the loan
vehicle (for car loan). in more than 3 years then he/she will
have to sign the letter of continuation.
 Comprehensive insurance (for car loan).  Tax returns of last period (Optional).
 Letter of authority.  Letter of Introduction.
 Letter of guarantee.  Letter of Continuation.
 Letter of undertaking.
 Letter of installments.
Chapter Five
Findings and Discussion
5.0. Customer Satisfaction and Perception Regarding CCS for PBL & SCB
Retail credit is deal with one to one customer, so it’s is less volatile than that Corporate Credit.
Credit risk segments in small, because of the small amount of loan. In PBL, asset quality at the
portfolio level is generally expected to be better in retail lending than corporate lending because
of dispersion of risk, product Structuring based on customer life cycles, strong collection
mechanisms etc. Every bank in Bangladesh both local and private focuses CCS as one of their
prime product because of this product visibility and most of the time CCS lending it self play a
vital role in promotion. Beside these, increasing economic growth, awareness of living standard
makes CCS lending is much popular. Thus, the target of the local banks is continuously
innovating new ways of this product to attract and satisfy customers and want to bit their foreign
competitors. This study wants to explore different consumer credit schemes of PBL and compare
the consumer credit scheme between Prime Bank Limited and Standard Chartered Bank Limited.
5.0.1. Research Questions

Q1.
Is there any significant relationship between service charge and Customer’s satisfaction about
different CCS products in Prime Bank Limited in context of PBL and SCB?
Q2.
Is there any significant relationship between interest rate and customer’s satisfaction about
Q3.
Is there any significant relationship between documentation charge and customer’s satisfaction
about different CCS products in Prime Bank Limited in context of PBL and SCB?
Q4.
Is there any significant relationship between competitive CCS and Customer’s satisfaction about
Q5.
Is there any significant relationship between installment period and Customer’s satisfaction
about different CCS products in Prime Bank Limited in context of PBL and SCB?
5.0.2. Hypotheses
Based on the research question the hypothesis can be as follows:
Ans.1
There is a significant Competitive relationship between CCS Schemes and Customer’s
Satisfaction about CCS Schemes in Prime Bank Limited in context of PBL and SCB.
Ans.2
There is a significant relationship between Interest Rate and Customer’s Satisfaction about CCS
Schemes in context of PBL and SCB.
Ans.3
There is a significant relationship between Documentation Charge and Customer’s Satisfaction
about CCS Schemes in Prime Bank Limited in context of PBL and SCB.
Ans.4
There is a significant relationship between Service Charge and Customer’s Satisfaction about
CCS Schemes in Prime Bank Limited in context of PBL and SCB.
Ans.5
There is a significant relationship between Installment Period and Customer’s Satisfaction about
CCS Schemes in Prime Bank Limited in context of PBL and SCB.
Framework
QUESTIONNAIRE
1. Customer’s Name : .....................................................................................
i) Age : ...............................................
ii) Sex : Male/Female
iii) Occupation : .................................
2. Bank’s Name : ..............................................................................................
3. Name the Product what you deal : ...............................................................
4. ANALYSIS OF CUSTOMER SATISFACTION :
Please assess the Bank services on the following variables based on your
experience and observation : (Tick (√) on the five point scale)
Sl. Topic Very Satisfactor Unsatisfactory Extremely

No satisfactory y unsatisfactory
.
1 Service Charge
2 Interest Rate
3 Documentation
4 Installment
Period
5 Loan Processing
Time
5.1. Customer Perception and Zone of Tolerance
Customer retention is soul of any business according to Kotler, without customer retention the
business will look like adding water to leaking bucket. The key of customer retention is customer
satisfaction. Every customer has certain level of zone of tolerance and this zone of tolerance
show that how much satisfaction is achieved by a certain service.
Desired Service Desired Service
Zone of Tolerance
Zone of Tolerance
Adequate Service
Adequate Service
More Tolerant about Service Less Tolerant about Service
Zone of Tolerance of different Customer
Every customer need, want and demand is different and for this reason, their zone of tolerance is
different. So each case study and proposed service’s perceptions are varying from consumer to
consumer. But the main focus of marketer is to make sure that, most of the consumer zone of
tolerance proves wide by their quality full package of any service. In this case study, I think
Interest Rate, Documentation, Service Charge, Loan processing time and installment period play
a vital role in consumer’s perception and their zone of tolerance.
5.2. Customers’ Satisfaction Regarding Interest Rate

Very Satisfactory Unsatisfactory Extremely
satisfactory unsatisfactory
No. of No. of No. of No. of

respond % respond % respond % responde %
ents ents ents nts
PBL 4 16% 10 40% 9 36% 2 8%
SCB 0 0% 6 24% 11 44% 8 32%
Customers’ Satisfaction Regarding Interest Rate
From the above chart, it’s clear that, Customers are satisfied of the interest rate charged by PBL
than SCB. It is seen that the clients want lower interest charge from SCB. They are somewhat
happy about the interest rate that is charged by PBL. Some of them still dissatisfied regarding it.
This interest rate is the key factor when one tales a loan. If a loan charges higher interest rate
then obviously it gives a negative impression into the customer mind though other facilities are
more flexible.
Customer Satisfaction Regarding interest rate

5.3. Customers’ Satisfaction Regarding Documentation
Very easy Easy Difficult Very Difficult

respond % responde % respond % respond %
ents nts ents ents
PBL 3 12% 4 16% 12 48% 6 24%
SCB 5 20% 12 48% 4 16% 4 16%
Customers’ Satisfaction Regarding Documentation
Customers are not satisfied of the documentation process of PBL than SCB because, most of the
customers in PBL find difficulties here because as it checks each document very carefully. Then
it takes time in the processing period and also creates an uncertainty whether they get that loan or
not. On the other hand, SCB’s clients feel easy regarding their documentation process because of
their flexibility on it.
Customer Satisfaction regarding documentation

5.4. Customers’ Satisfaction Regarding Service Charge
Very Comfortable Uncomfortable Extremely
comfortable uncomfortable

respond % responde % respond % respond %
ents nts ents ents
PBL 3 12% 8 32% 13 52% 2 4%
SCB 4 16% 14 56% 5 20% 2 4%
Customers’ Satisfaction Regarding Service Charge
Customers in PBL feel uncomfortable than SCB regarding the service charge, because as PBL
charges the down payment and risk fund during delivery of the loan, it creates a problem for the
customer to give the additional service charge. In SCB they do not charge any down payment
and risk fund. Therefore it makes client feel comfortable to deal with SCB.
Customer satisfaction regarding service charge

5.5. Customers’ Satisfaction Regarding Installment Period

respond % respond % respond % respond %
ents ents ents ents
PBL
2 4% 6 24% 13 52% 4 16%
SCB
9 36% 10 40% 4 16% 2 4%
Customers’ Satisfaction Regarding Installment Period
Customers are unsatisfied regarding PBL’s installment period, because in PBL though they
charge lower interest rate than SCB but it does not that much lower by which a customer can be
easy going on it. In market, it is moderate in nature. In addition, most of their products the
maturity period are less than SCB. Thus, though it has the same installment period like SCB but
because of its lower maturity period and moderate interest rate make unsatisfied the customer
regarding it than on SCB.
5.6. Customers’ Expectation Regarding Loan-Processing Time


respond % respond % respond % responde %
ents ents ents nts
PBL 3 12% 4 16% 12 48% 6 24%
SCB 5 20% 13 52% 4 16% 3 12%
Customers’ Expectation Regarding Loan-Processing Time
Customers of PBL are unsatisfied regarding loan processing time than SCB, though maximum
products in CCS do not need to concentrate much on processing period but loan like
hospitalization loan, education loan need higher processing time. In PBL processing time is
more, almost 3 days whereas in SCB it provides 1-2 days. Higher processing time make the
customer in PBL dissatisfied in this sector.
Customer expectation regarding loan processing time

5.7. Most Preferred Product Under CCS on both the Banks
Household loan, Education loan are the most preferred loan in PBL because, household durable
loan and education loan are more popular in PBL than SCB. Considering the H.H.D loan clients
prefer it because it charges only 16% rate whereas SCB charges 18% rate. As it provides the loan
for buying TV, fridge, computer so people do not concentrate more on product’s image; specially
the brand image. Rather people want here low interest, easy processing, early settlement fee etc.
Here most of the time, people can repay the loan before maturity and do not feel fine if the banks
charges the early settlement fee. This is one of the key requirements in SCB and hence
dissatisfies the customers and formulates them to move into the other banks like PBL.
For education loan though people want higher processing time for necessity but they also want
the less interest rate and higher maturity period. This loan is disbursed most of the time for the
purpose of getting education from abroad. Thus, it increases uncertainty regarding maturity and
interest rate. Here SCB charges 18% interest rate with 4.5 years maturity whereas PBL charges
16% having 5 years maturity. This in turn makes the customer to get the loan from PBL.
The concept of “Car Loan” was first introduced by the SCB and got a tremendous encouraging
response on it. From the beginning, they provide the loan on more hassle free way. If the clients
wish for purchasing brand new car or reconditioned car then their first choice is to get loan from
the SCB because of their fastest processing time, higher maturity period, less tighten on security
and documentation at the earlier stage. Here the drawback of PBL is that they are not faster
responder and efficient as like as SCB. SCB also offers this loan in business purpose but this
facility was not provided by PBL. Home loan that is a new concept in the market get popularity
more in SCB than PBL because of its higher maturity period and less documentation process.
For the hospitalization loan, the customers prefer to go to the PBL rather than SCB because of
charging higher interest rate. In the critical situation people gets this loan without much thinking
on future. If they take the loan without considering all other factors, especially the interest rate
the loan can be classified and hence it turns into a problem to the customers. Travel loan and
marriage loan are more preferable in SCB as it provides longer maturity period, no down
payment charge etc.
Chapter Six
Recommendation
With the consideration of the above whole study, especially for long-term profit, they can obtain
some necessary steps that I recommend to them
 They should communicate properly with consumer about their schemes.

 To face the competitive situation they should come up with innovative ideas.
 They should more emphasize on its product features. It should be adjusted with the recent
market scenario.
 As they provide less maturity period to attract customer they can increase the installment
period so it will be flexible to the customers.
 They should be more flexible and efficient regarding documentation process. Like to
appoint expertise and efficient teams to examine the documents faster and concentrate
how to reduce the approval time.
 They should take necessary steps regarding conservative security.
 In the banking industry, there is no bank who charges risk fund and down payment for
CCS at a time except PBL, which increases the customer dissatisfaction rate. Therefore
PBL should reduce this kind of charges to be more competitive in the market.
 After assessing the buyer if possible then provide them the “Additional Loan”.
 To reduce loan-processing time it can introduce online loan application, submission and
personal credit processing.
 They should take more efficient employees in retail section, who can understand
customers need.
After adopting the above suggestions I think CCS not only bring high profit potential but also
will provide PBL a competitive edge over its major competitors like SCB or other bank.
Conclusion
In recent years, CCS is one of the popular schemes in the banking industry. For Prime Bank
Limited, there is a huge prospect to increase market share in this sector but due to lack of
emphasize, fund, marketing strategy Prime Bank limited still far away than Standard Chartered
Bank. Emphasizing on Consumer Credit Scheme also would strengthen Prime Bank Limited
position in the market and it can also do important promotion for consumers. Such importance
can be an important strategic decision and would help the bank to maintain its stronger position
over long term. From the above analysis and comparison, it has been proved that, Prime Bank
though has some problems, yet it has lots of opportunities to carry on its retail lending business.
Diversified product portfolio, lower rate of charges etc is the favorable features of PBL for
clients. Customer satisfaction is a key to success for any business. If Prime Bank Limited follows
the above recommendations, to cope up its problem, and change it’s service little bit user
friendly than its sure that, Prime Bank Limited will get competitive advantage over it’s major
competitors.
Bibliography
Publications
1. Guidelines for Foreign Exchange Transactions Bangladesh Bank.
2. Lodgment and Retirement of import bills under documentary letter of Credit, Prime Bank
Training Institution, Head Office, Dhaka, on International Trade Payment and Foreign
Exchange.
4. Statements of affairs (Daily) Prime Bank Limited, Motijheel Branch.
5. Annual Report of PBL.
6. Training manual on “Credit Management” by BIBM.
Internet
1. http://www.prime-bank.com
2. http://www.prime-bank.com/index.htm
3. http://www.wiwipedia.org/wiki/Letter_of_credit#How_it_works
4. http://www.answers.com/topic/letter-of-credit
5. http://www.standardchartered.com/bd/en.
6. http://www.standardchartered.com/bd/.

Internship Report - Consumer Credit Scheme, Customer Satisfaction and Customer Perception in The Context of Prime Bank Limited

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Internship Report - Consumer Credit Scheme, Customer Satisfaction and Customer Perception in The Context of Prime Bank Limited

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Ref: PBL/CU/271

January 20, 2011

To Whom It May Concern

This is to certify that Jahirul Islam a Student of M BA

During the period of internship program he was attached with

I wish him every success in future.

Dated: 27th January, 201

Subject: Letter of submission of the report of MBA internship program

Thanks for your friendly co-ordination to make the process success.

I am also grateful to Mr Md.Tareq Ahmed, head of SME of the Motijheel Branch,

Bank credit is an important catalyst for bringing about economic development in a

Objective of the Study

The supporting Objectives:

Scope of the Study

 Foreign exchange department

Methodology of the study

Account Opening Section,

Computer section Clearing section

The following are steps related to cash handling at branch level:

Cash payment to customers:

Procedure of Cash Payment:

Minimum requirements of cheque in different accounts:

Cash Received from Customer:

Cash Receive Procedure:

Check the strong of cash:

Account Opening section

b. For a joint account:

c. For a companies in case of Public/Private, Societies/Club:

Some of the important deposits are briefly presented below-

a)Short-term Deposit Account:

b) Fixed Deposit Receipt:

d) Double Benefit Deposit Scheme:

e) Education Savings Schemes:

g)Contributory Savings Scheme:

h) Lakhopati Deposit Scheme:

Cheque Book Issue:

The process of Cheque Book Issue:

Cheque for withdraw money:

Cheque for collection:

The functions of the account section are:

A) Payment Order / Pay Order (P.O)

# For Tk. 1 to 10,000, the commission is Tk.10.

# For Tk. 10,001 to 1,00,000, the commission s Tk. 15.

# For Tk 1,00,001 to 5,00,000, the commission is Tk. 50.

# For Tk 5,00,001 to 10,00,000, the commission is Tk. 75.

Issue of Pay Order (PO)

Procedure of Issuing Payment Order:

Cancellation of Pay Order:

B) Demand Draft (D.D):

Procedure for issuing D.D.:

Procedure for payment of D.D.:

Cancellation of Local Draft:

The followings are followed while canceling a D.D.—

Procedure for issuing T.T.:

 Obtain T.T. application from duly filled in and signed by the

Procedure for payment of T.T.:

Online Branch Banking Section

Under this system a client will to be able to do following type of transactions:

Terms & Conditions of Online Branch Banking Se

 Cash withdrawal from your account at any branch of the Bank.

03. Cash deposit/transfer by online transaction is unlimited.

Charges for Online Transaction

Who can get this service?