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View with images and charts Banking System of The City Bank Limited, Bangladesh

2.1. DEFINITION OF THE BANK The Jews in Jerusalem introduced a kind of banking in the form of money lending before the birth of Christ. The word 'Bank' was probably derived from the word 'bench' as during ancient time Jews used to do money - lending business sitting on long benches. First modern banking was introduced in 1668 in Stockholm as 'Savings Pis Bank' which opened up a new era of banking activities throughout the European Mainland. In the South Asian region, early banking system was introduced by the Afghan traders popularly known as Kabuliwallas. Muslim businessmen from Kabul, Afghanistan came to India and started money lending business in exchange of interest sometime in 1312 A.D. They were known as 'Kabuliwallas'. 2.2. OBJECTIVE OF BANK THE BANKING SYSTEM The banking system at independence consisted of two branch offices of the former State Bank of Pakistan and seventeen large commercial banks, two of which were controlled by Bangladeshi interests and three by foreigners other than West Pakistanis. There were fourteen smaller commercial banks. Virtually all banking services were concentrated in urban areas. The newly independent government immediately designated the Dhaka branch of the State Bank of Pakistan as the central bank and renamed it the Bangladesh Bank. The bank was responsible for regulating currency, controlling credit and monetary policy, and administering exchange control and the official foreign exchange reserves. The Bangladesh government initially nationalized the entire domestic banking system and proceeded to reorganize and rename the various banks. Foreign-owned banks were permitted to continue doing business in Bangladesh. Cooperative credit systems and postal savings offices handled service to small individual and rural accounts. The new banking system succeeded in establishing reasonably efficient procedures for managing credit and foreign exchange. SECTORAL FOCUS: The primary function of the credit system throughout the 1970s was to finance trade and the public sector, which together absorbed 75 percent of total advances. The government's

encouragement during the late 1970s and early 1980s of agricultural development and private industry brought changes in lending strategies. Managed by the Bangladesh Krishi Bank, a specialized agricultural banking institution, lending to farmers and fishermen dramatically expanded. The number of rural bank branches doubled between 1977 and 1985, to more than 3,330. IMPROVEMENT Denationalization and private industrial growth led the Bangladesh Bank and the World Bank to focus their lending on the emerging private manufacturing sector. Scheduled bank advances to private agriculture, as a percentage of sectoral GDP, rose from 2 percent in FY 1979 to 11 percent in FY 1987, while advances to private manufacturing rose from 13 percent to 53 percent. PROBLEMS The transformation of finance priorities has brought with it problems in administration. No sound project-appraisal system was in place to identify viable borrowers and projects. Lending institutions did not have adequate autonomy to choose borrowers and projects and were often instructed by the political authorities. In addition, the incentive system for the banks stressed disbursements rather than recoveries, and the accounting and debt collection systems were inadequate to deal with the problems of loan recovery. It became more common for borrowers to default on loans than to repay them; the lending system was simply disbursing grant assistance to private individuals who qualified for loans more for political than for economic reasons. The rate of recovery on agricultural loans was only 27 percent in FY 1986, and the rate on industrial loans was even worse. The problem of credit recovery remained a threat to monetary stability, responsible for serious resource misallocation and harsh inequities. Although the government had begun effective measures to improve financial discipline, the draconian contraction of credit availability contained the risk of inadvertently discouraging new economic activity. OVERCOME As a result of these poor showing, major donors applied pressure to induce the government and banks to take firmer action to strengthen internal bank management and credit discipline. As a consequence, recovery rates began to improve in 1987. The National Commission on Money, Credit, and Banking recommended broad structural changes in Bangladesh's system of financial intermediation early in 1987, many of which were built into a three-year compensatory financing facility signed by Bangladesh with the IMF in February 1987. Foreign exchange reserves at the end of FY 1986 were US$476 million, equivalent to slightly more than 2 months worth of imports. This represented a 20-percent increase of reserves over the previous year, largely the result of higher remittances by Bangladeshi workers abroad. The country also reduced imports by about 10 percent to US$2.4 billion. Because of Bangladesh's status as a least developed country receiving concession loans, private creditors accounted for only about 6 percent of outstanding public debt. The external public debt was US$6.4 billion, and annual debt service payments were US$467 million at the end of FY 1986. 2.3. HISTORICAL BACKGROUND The commercial banking system dominates Bangladesh's financial sector. Bangladesh Bank is the Central Bank of Bangladesh and the chief regulatory authority in the sector. The number of banks in all now stands at 83 in Bangladesh. Out of the 83 banks, 4 are Nationalized Commercial Banks (NCBs), 29 local Private Commercial Banks, 10 Foreign

Banks and the rest 8 are Development Financial Institutions (DFIs) or Specialized Banks. My concentration of this report, The City Bank Limited, is categorized as Private Commercial Bank. Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones. Among the 10 foreign banks, Standard Chartered has become the largest in the country. The number of total branches of all scheduled banks is 6,038 as of June 2000. Of the branches, 39.95 per cent (2,412) are located in the urban areas and 60.05 per cent (3,626) in the rural areas. Of the branches NCBs hold 3,616, private commercial banks 1,214, foreign banks 31 and specialized banks 1,177. Bangladesh Bank (BB) regulates and supervises the activities of all banks. The BB is now carrying out a reform program to ensure quality services by the banks. 2.4. BANKING OPERATION BANGLADESH BANK In Bangladesh, especially in the Banking sector the following Acts have been practiced for years. The Acts are –          

The Bangladesh Bank Order, 1972; The Bank Companies Act, 1991; The Financial Loan Court Act, 1990; The Financial Institutions Act, 1993; Foreign Exchange Regulation Act, 1947; The Money Loan Court Act, 1990; The Contract Act, 1872; The Negotiable Instrument Act, 1881, The Partnership Act, 1932; Other Acts related to charging of Securities, documentation of loans and advances, law of insurance relating to goods etc.

3.1. ORGANIZATION REVIEW The City Bank Limited City Bank is one of the oldest private Commercial Banks operating in Bangladesh. It is a top bank among the oldest five Commercial Banks in the country which started their operations in 1983. The Bank started its journey on 27th March 1983 through opening its first branch at B. B. Avenue Branch in the capital, Dhaka city. It was the visionary entrepreneurship of around 13 local businessmen who braved the immense uncertainties and risks with courage and zeal that made the establishment & forward march of the bank possible. Those sponsor directors commenced the journey with only Taka 3.4 core worth of Capital, which now is a respectable Taka 330.77 core as capital & reserve. City Bank is among the very few local banks which do not follow the traditional, decentralized, geographically managed, branch based business or profit model. Instead the bank manages its business and operation vertically from the head office through 4 distinct business divisions namely: I. Corporate & Investment Banking; II. Retail Banking (including Cards); III. SME Banking; & IV. Treasury & Market Risks.

Under a real-time online banking platform, these 4 business divisions are supported at the back by a robust service delivery or operations setup and also a smart IT Backbone. Such centralized business segment based business & operating model ensure specialized treatment and services to the bank's different customer segments. The bank currently has 83 online branches spread across the length & breadth of the country that include a full fledged Banking branch. Besides these traditional delivery points, the bank is also very active in the alternative delivery area. It currently has 26 ATMs of its own; and ATM sharing arrangement with a partner bank that has 225 ATMs in place; SMS Banking; Interest Banking and so on. Soon its Customer Call Center is going to start operation. The bank has a plan to end the current year with 50 own ATMs. City Bank is the first bank in Bangladesh to have issued Dual Currency Credit Card. The bank is a principal member of VISA international and it issues both Local Currency (Taka) & Foreign Currency (US Dollar) card limits in a single plastic. VISA Debit Card is another popular product which the bank is pushing hard in order to ease out the queues at the branch created by its astounding base of some 400,000 retail customers. The launch of VISA Prepaid Card for the travel sector is currently underway. City Bank prides itself in offering a very personalized and friendly customer service. It has in place a customized service excellence model called GAP (Graceful-Appropriate-Pleasing) that focuses on ensuring happy customers through setting benchmarks for the bank's employees' attitude, behavior, readiness level, accuracy and timelines of service quality. City Bank is one of the largest corporate banks in the country with a current business model that heavily encourages and supports the growth of the bank in Retail and SME Banking. The bank is very much on its way to opening many independent SME centers across the country within a short time. The bank is also very active in the workers' foreign remittance business. It has strong tie-ups with major exchange companies in the Middle East, Europe, Far East & USA, from where thousands of individual remittances come to the country every month for disbursements through the bank's large network of 83 online branches. The current senior management leaders of the bank consist of mostly people form the multinational banks with superior management skills and knowledge in their respective "specialized" areas. The bank this year, is celebrating its 25th year of journey with the clear ambition of becoming the no.1 private commercial bank in the country in 3 years time. The newly launched logo and the pay-off line of the bank are just one initial step towards reaching that point. 3.2. MANAGEMENT OF CBL Boards of directors are the sole authority to take decision about the affairs of the business. Now there are 12 directors in the management of the bank. All the directors have good academic background and have huge experience in business. Mr. Aziz Al- Kaiser is the chairman of the bank. The board of directors holds meetings on a regular basis. There are different committees in the bank for the efficient management of the bank.  Board of Directors

 Policy committee: this committee deals with any policy matters related to the banks new products, new business development and any sort of policy related to CBL. It seats fortnightly.  Executive committee: it seats the City Bank Ltd weekly.  Credit Committee All these committees meet on a regular basis for discussing various issues and proposals submitted for decisions. 3.3. DIRECTORS OF CBL The Board of Directors of the City Bank Limited consists of 12 Directors including one Chairman and one Vice Chairman. The Directors are: 1. Mr. Aziz Al Kaiser , Chairman 2. Mr. HossainMehmood, Vice Chairman 3. Mr. Kazi Mahmood Sattar, Managing Director and CEO 4. Mr. Rubel Aziz , Director 5. Ms. Evana Fahmida Mohammad, Director 6. Mr. Hossain Khaled Saifullah , Director 7. Mr. Rajibul Haque Chowdhury, Director 8. Mr. Ahmed Rajib Samdani, Director 9. Mr. Mobarak Ali , Director 10. Ms. Tabassum Kaiser , Director 11. Mr. Rafiqul Islam Khan , Director 12. Ms. Meherun Haque , Director 3.4. VISION OF THE BANK To be the leading Bank in the country with best practices and highest social commitment 3.5. MISSION OF THE BANK  To contribute socio economic development of a country.  To attain high level of customer satisfaction through extension of service by dedicated and motivated team of professionals.  To maintain continuous growth of market share ensuring Quality.  To maximize bank’s profit by ensuring its steady growth.  To maintain the high moral and ethical standards.  To ensure participative management system and empowerment of Human Resources.  To nature an enabling environment where innovativeness and performance is rewarded. 3.6. OBJECTIVE OF THE BANK The City Bank’s objectives are reflected in the following areas:  Highly personalized service.  Customer-driven focus.

 Total commitment to quality.  Contribute in the economy.  Quality of human resources.  Commitment to its clients at each level. The company believes that communication with, and feedbacks from its clients help it achieve its goal of providing world-class products and services. The City Bank Ltd regularly conducts client satisfaction surveys and make immediate accommodations and adjustments where needed. It also constantly monitors its standards, and strives to meet clients’ requirements. 3.7. DEPARTMENTS OF THE BANK If the jobs are not organized considering their interrelationship and are not allocated in a particular department it would be very difficult to control the system effectively. If the departments are not fitted for the particular works there would be haphazard situation and the performance of a particular department would not be measured. The City Bank Limited does this work very well. There are  Human Resources Division  Finance Division  Audit and Inspection Division  Internal Control & Compliance  Marketing Division  Corporate Banking Division  Consumer Banking Division  Treasury Division  Trade Service & Correspondent Banking Division  Logistic and support division  Information Technology Division  Credit Division  SME Division  Credit Admin and Monitoring Division  Corporate Affairs Division  Card Division  Recovery & Legal Division. 3.8. HUMAN RESOURCES MANAGEMENT OF THE BANK The core competencies in banking sector can be created with the help of its personnel. The main thing in banking business is that a bank or financial institution has to avail the trust of the depositor, client for improving its performance. If general people has not have confidence on the banking system total development of the economy may be halted as main circulation of the money come out through the process of banking. Availing the trust of the general people is not an easy task. Not only the directors attitude and efficiency but also that of the employees are important for achieving the trust of the general people and thus for better performance of the bank. If the employees are satisfied they will work for the organization and there will be a kind of loyalty created in the mindset of the employees. The employee has to be competent.

In the face of the today’s global competition, it is not only essential to assemble the best people to work for the company but also to equip the workforce with the latest skill and technologies and retain the high achievers to compete effectively and efficiently. To cope with the consumer’s need City Bank is committed to developing individual professional and technical skills through educational opportunities and wide range of internal and external manpower development and job related training programs. The banks human resources policy emphasize on providing job satisfaction, growth opportunities, and due recognition of superior performance. A good working environment reflects and promotes a high level of loyalty and commitment from the employees. Realizing this The City Bank Limited has placed the utmost importance on continuous development of its human resources, identify the strength and weakness of the employee to assess the individual training needs, they are sent for training for self development. To orient, enhance the banking knowledge of the employees PBL organize both in-house and external training. In the year 2007, the Bank Appointed 87 employees of whom 23 were executives, 9 junior cash officers, and 48 officers of different levels with 8 staffs and sub-staffs. Total number of employees of the Bank at the close of year 2007 thus stood at 1991 employees, comprising 239 executives, 1158 officers, and 584 other support staffs. Human Resources

2003 1771

2004 1692

2005 1803

2006 1829

2007 1989

2008 1991

Table 1: No. of Employees at CBL 3.9. HIERARCHY OF THE MANAGEMENT OF THE BANK The hierarchy of the management team consists of 14 positions where Managing Director takes the highest authority. Managing Director Managing Director  Deputy Managing Director  Senior Executive Vice President  Executive Vice President  Senior Vice President  First Vice President  Vice President  Senior Assistant vice President  Assistant vice President

 Senior Executive Officer  Executive Officer  Senior Officer  Officer  Junior Officer Graph1: Hierarchy of the Management Team 3.10. ORGANIZATION DIVISION OF THE BANK 3.10.1 RETAIL BANKING: One of the most remarkable success stories of last 50 years’ banking industry globally has been the conceptualization and innovative execution of banking with individual customers, their friends & families. The industry has termed it as Retail Banking or Personal Banking or Consumer Banking; and it has now - at a very rapid pace – become the major revenue line for most of the top banks in the world. City Bank, too, recently has started its journey in Retail Banking. “City Retail - add a little city to your life” is the new brand-mantra, the pay-off line for City Retail. Our aim is clear. The City Bank Ltd want City Bank to become the most preferred bank to all individual clientele of the country, at least of the cities and towns where the City Bank Ltd operate. The City Bank Ltd wants to provide our customers the best-in-class services, innovative products and financial solutions from smart outlets - all with a big smile that conveys and generates happiness all the way! The major retail banking products of the City Bank Limited are:  Deposit Service  Loan service  NRB (Banking facilities for Non Residential Bangladeshis)  Debit and Credit Card City Shomridhdhi is an exceptional DPS product that is distinctly more attractive than the prevalent DPS products in the market. You receive a hefty sum at the end of the term against your monthly deposit of small installments. It's a perfect way to secure your financial future! City Projonmo is a unique monthly deposit scheme that you open for your kids to safeguard their future against all uncertainties and risks. As a guardian of the child you can open this account which builds great & unmatchable savings for you over the years. By the time your child is past his or her school age, there is this sufficient cash in your hand to take care of his / herhigher education, marriage or other such large expenses.

City Ichchapuron allows you to earn interest and enjoy interest every month that accrues in your fixed deposit account, no matter what the term of the deposit is. It helps make your financial planning more disciplined, and your life more organized. While your fixed deposit remains untouched and well-kept for future, you keep on getting the profit on a monthly basis. What better way to take care of your monthly recurring expenses like children’s education or school fees, house tutor’s remuneration, utility bill payments, saving money in some DPS scheme? City Drive is a tailor made Auto Loan facility. City Solution is life-style loan including vacation, education, wedding, house renovation and medical financing. City Bank currently has 9,000 Debit Cards and 8,000 Credit Cards including dual currency cards first of its kind in circulation. 50 new ATMs are projected to be launched in 2008-09 to facilitate reach and convenience and thereby help to increase its customer base significantly. Already 11 ATMs are in operation and City Bank’s customers can use Dutch Bangla Bank’s large ATM Fleet. 3.10.1.1 Deposit: City Bank offers a wide variety of deposit products to meet your financial needs. From current and savings accounts to Fixed Deposits and Pension Schemes each account is designed to give you the best value for your money. Please take a closer look at all the deposit products of City Bank has to offer and then visit any of our branches close to your location. Deposit Products:  Current account  Savings account  City Onayash  City Shomridhdhi  City Projonmo  City Ichchapurun  Fixed Deposit 3.10.1.2 Loan service: City Bank offers three types of lone service. The loan products are:  City Drive  City Solution  City Express 3.10.1.2.1 City Drive: Owning a car is no longer a luxury. Car for your family is now a matter of fulfilling a necessity. Appreciating that basic need, City Bank introduces City Drive, a tailor-made auto loan scheme for individuals. Features  Loan amount ranging from Tk. 300,000 to Tk. 20,00,000  Car financing up to 90% of reconditioned or new vehicle price  Lower interest rate & up to 100% financing for loan against cash security  Loan tenor 12 to 60 months  No hidden charges

 Competitive interest rate  Loan processing fee 1% of loan amount Eligibility:  Age: 22 to 60 years  Experience: Salaried executive total 1 year including 6 months with current employer  Experience: Business person/paraprofessional 1 year  Monthly income: Minimum Tk. 30,000 3.10.1.2.2. City Solution: Whatever the occasion or requirement may be, City Solution - any personal loan from City Bank - is there to solve all your problems and to fulfill all your dreams. You can access this facility from our selected branches across the country. Features:  Loan amount ranging from Tk. 50,000 to Tk. 1000,000  Loan tenor 12 to 60 months  No guarantor required for the loan amount up to Tk. 3 lac  No hidden charges  Competitive interest rate  Processing fee 1.5% Eligibility:  Age: 22 to 60 years  Experience: Salaried executive total 1 year including 6 months with current employer  Experience: Business person 2 years  Experience: Professional 1 year  Minimum monthly income: Salaried executive Tk. 15,000, self employed Tk. 25,000 and business person Tk. 30,000 Loan Takeover plan: An exclusive offer for other bank's credit worthy customers who can now transfer their personal loan outstanding to City Solution with a preferential interest rate and waiver on processing fee. Eligibility:  Minimum 6 loan EMI repayment with existing bank.  A minimum take over loan amount is Tk. 100,000 and maximum Tk. 950,000. Benefits:  No processing fee.  No extra cost for loan takeover.  No processing fee for additional loan.  1% reduced from City Solution interest rate. 3.10.1.2.3. City Express: City Express Cash is a fully secured and revolving facility for any legitimate purpose. The security for the loan should be ideally CBL FDR. Bank would finance against clients CBL FDR or other banks/NBFIs security.

City Express Loan is a fully secured and terminating (EMI Based) loan facility for any legitimate purpose. Bank would finance against clients CBL FDR or other bank FDR/NBFIs security. Features:  Minimum loan amount Tk. 50,000 & Maximum 90% of the Present Value of CBL FDR or any other security.  Quick processing  Minimum documentation  Loan tenor 12 to 60 months  No guarantor required  No hidden charges Processing Fees: For express cash, 0.5% of approved limit For Express Loan, following slab wise fee will be applicable: up to Tk. 5 lac up to Tk. 10 lac Above Tk. 10 lac

Tk. 1000 Tk. 1500 Tk. 2000

Eligibility:  Age: 18 +  Must be Bangladeshi  Any eligible individual, who will provide the cash security 3.10.1.3. NRB (Banking facilities for Non Residential Bangladeshis): By your side - all the way The city Bank's Foreign Remittance unit meets growing customer needs for fast, secure & easy money transfers to an extensive range of destinations. Being a committed bank to its customers, we go all the lengths to remit your hard earned money safely to your loved ones. With us, apart from a range of high-class modem remittance solutions, you will get peace of mind which we believe counts to most. Facility City Bank Limited has 83 online branches across the country; besides, the Bank has a strong remittance network with other major banks of the country. Therefore, wherever your account is, we are able to send your money instantly. If you are a City Bank account holder, then please visit any of our branches. Our Foreign remittance service personnel will be there to help you out. If you are not an account holder, then please open an account of your choice with us to receive your remittance at earliest convenience. CBL understands the value of your precious time. That's why have made the payment procedure simple & easy. You have the privilege of enchasing the remitted money instantly from your branch counter without going through any hassle. That is to say, if you are an account holder of City Bank, we can instantly credit the money to your account or pay cash to the receiver.

So, place your trust with City Foreign Remittance Service. Send your money to your loved ones & experience peace of mind 3.10.1.4. Debit and Credit Card Debit Card: CITY Visa Electron Debit Card - By your side, round the clock.Now comes the Visa Debit Card from City Bank. Your life, therefore, becomes hassle-free and safe; and it is Visa Electron branded, which makes you the proud owner of a meaningful plastic. Features:  Cash withdrawal from 500+ Visa ATMs 24/7/365 all over the country  Shop and dine at hundreds of merchant Visa outlets all over the country  Balance enquiry  PIN Change  Mini statement  Cash withdrawal @ Taka 12 per transaction at 583 DBBL ATMs  Cash withdrawal @ Taka 10 per transaction at 110 Q-cash network ATMs Eligibility: If you are an individual and have a savings, current or STD account in CBL, you are eligible avail this card. Just drop in any nearby CBL branch, collect an application form and submit duly filled up form. Within shortest time you will get the card delivered at your mailing address or at your designated branch. Credit Card: City Bank is the first bank to issue Dual Currency Credit Card in Bangladesh. This card enables you simultaneous usage of your card both in home and in abroad. You do not need to carry two different cards for the same purpose. Features:  Variable Interest Rate  EMI Plan  Balance Transfer  Round the clock cash withdrawal facility at any Visa branded ATM throughout the world  Round the clock purchasing power for goods and services at any Visa branded POS outlet  24% interest on Cash Advance  No cash Advance fee at CITY ATMs  Lowest Annual/Renewal Fee  International Roaming facility  Internet Transaction  Convenient Repayment option  E-statement  Limited Lost Card Liability  Secured with your Photo – Photo Card  24 hours customer service help desk

Eligibility:  Bangladeshi Nationals  Age range for primary card holder is 18 years to 60 years  Age range for supplementary card holder is 18 year to 60 years  Age bar can be relaxed for secured cards  Minimum Gross Monthly Income(GMI) for silver card Tk 15,000  Minimum Gross Monthly Income(GMI) for gold card Tk 30,000 City Credit Cards:  Visa Local Classic  Visa Classic Dual  Visa Gold Local  Visa Gold Dual 3.10.2. CORPORATE BANKING: City Bank is a major player in Bangladesh wholesale banking industry to offer the full scope of innovative, customized solutions and services. The City Bank Ltd offers service at the highest level. Our focus is not on short-term profit, but on building long-term relationships and standing by our clients whenever they need us. The City Bank Ltd has a unique business focus on enabling project financing, trade, investment and supply chain financing for clients. The City Bank Ltd aims to be a one-stop gateway for corporate and financial institutions looking to extend their business. And the City Bank Ltd are committed to using our country wide network to facilitate our clients’ growing trade and investment flows and supply chain financing needs across our business footprint. The Corporate & Investment Relationship teams have taken the blue chip customers like Grameen Phone, Epylion Group, Banglalink, Ericsson, Meghna Group, Esquire Group, and Nandan etc. Structured Finance team has recently closed a Tk. 1100 million preference share transaction for Khulna Power Company Ltd. As mandated facilitator and agent. The City Bank Ltd focuses exclusively on corporate and institutional clients domiciled or conducting business in our footprint, offering clients access to our extensive branch network and award winning suite of state of the art services. It fully understands the importance of time, convenience and efficiency to the success of your business. The City Bank Ltd makes easy the complex financial world for you and helps you maximize every opportunity. Following are the Corporate Banking Products of the City Bank Limited:  Working capital finance  Trade finance  Short / Mid-term finance  Project finance  Islamic finance  Structured finance  Cash management  Investment banking

3.10.3. SME BANKING: SME Banking of City Bank is assuming a new and modern dimension. It is entering in to a wider horizon. The philosophy of extending banking services to SME's of the country is to meaningfully push every one of them up to the next level of respective business operations. The upward push would be meaningful as they would be business wise competitive for a sustainable future. It is therefore would be turning in to an abode of SME's to grow to the next level. Hence, the bank has named it City Business - for taking SME's to the next level. For the first time in the history of City Bank, SME Banking business processes are going to be driven thru a centralized platform model. This is a fundamental move away from a 25 years legacy system of decentralized geography based branch banking model. The City Bank Ltd knows this transformation process and momentum is already in place. This would be completed by 2008 City Bank provides several customized SME Banking products namely City Muldhan, City Sheba, City Shulov, and City Munafa. SME asset size went up to BDT 4930 in 2007 and the number of borrowers in SME was 2825. 3.10.4. TREASURY &MARKET DIVISION: City Bank Ltd. has a dedicated Treasury team who is capable of providing all treasury Solutions. Through our foreign correspondent business partners CBL is providing a wide range of Treasury products. In CBL Treasury, there are four teams who are specialized in their own area to ensure the best possible solution to our customer requirement. CBL has following teams in the Treasury:  Foreign Exchange (Local & G7)  Money Market  Corporate Sales  ALM & Market Research3.11. LIST OF BRANCHES OF CBL Dhaka Zone B.B. Avenue Branch 12 B.B. Avenue Dhakal000PO. Box-3756, Cable: OTYAVENUE Phone: 9566744,9552278,9552279 Fax: 88-02-9552278 Dhaka Chamber Branch Chamber Bhaban 65-06 Motijheel C/A, Dhaka-l000 Phone: 9563897 9571

Foreign Exchange Branch 27 Dilkusha CIA, Dhaka1000 Phone: 9564315,9559388 Islami Ismail

Banking Branch Mansion 9/H

Bhairab Bazar Branch 129 Kalibari Road Bhairab Bazar, Kishorgonj-2350 Phone: 71567

Bow Bazar Branch P.O. Deotala Golla Nababgonj, Dhaka-1320 Phone: 06224-85296

Dhanmondi Branch Road # 27(Old),32(New) ,House# 312, Suvastu Zenim Plaza (2nd floor), Dhanmondi R/A, Dhaka-1205 Phone: 9124475 8143825 0191321763 Gulshan Branch 49, Gulshan South (Near Market-l) Gulshan RIA, Dhaka-1212 Phone: 8825310. 8825206 Fax: 88-02-882531 Islampur Road Branch 108 Islampur Road, Dhaka-

DSE Nikunja Branch Lotus-Kamal Tower One 57 Zoar Shahara CIA Nikunja-2, New Airport Road, Dhaka1229 Phone: 8964013

Imamgonj Branch 44-45/2 Imamgonj, Dhaka1100 PO.Box.SADAR-1112, Cable: OTYIMAM Phone: 7316498,7318201,7313581 Fax: 88-02-7318201 Johnson Road Branch Aziz Center (1st Roor)31,

Motijheel C/A, Dhaka 1100 Cable: aTYISLAM Phone: 7171884, 71770 Phone: 7391920, 7392402 Fax: 88-02-7392402 Kaliganj Branch Kawran Bazar Branch 8, P.O. Shubhadda Panthapath (UTe), Kawran Keranigonj, Dhaka-1310 Bazar, Dhaka-1215 Phone: Phone: 7772857 8113547,811936 Manikganj Branch 106/2 Shaheed Ralique Sarak Manikgonj-1800 Phone: 61616 Mymensingh Branch 20 Chom Bazar, Mymensingh-2200 Phone: 54493 New Market Branch House # 5, Road # 2 Novera Square, Dhanmondi RIA, Dhaka-1205 Phone: 8614070,8615180 Cell : 01711404150 Posta Branch 35 Shaista Khan Road Dhaka-1211 Phone: 8612019,862946

Johnson Road, Dhaka-1100 Cable: CITYDHN Phone: 7115439,7123432 Madhadi Branch Bank Road, Madhabdi Bazar Narsingdhi-1604 Phone: 06257-56222 Mob: 01711404113 Mirpur Branch Mouchak Branch 1 Dar-us-Salam Road (1st 80/A Siddeswari Circular Floor) Section-l, Mirpur, Road Malibagh, Dhaka-1217 Dhaka-1218 Phone: Phone: 9357717,8317536 9002891 Narsinghdi Branch Netaiganj Branch Hoding:l92 (Bazar), 217 B. K. Road Netaigonj SarwardiPmk, Narsingdi Narayangonj-1400 Phone: Cable: CITYBANK Phone: 9713621 62505 Nowabganj Branch Nowabpur Branch P.O. Nababgonj Dhaka- 219-220 Nawabpur Road 1320 Phone: 06225-8807 Dhaka-1100 Phone: 9558087

Pragati Sarani Branch Ga-30/G, Pragati Sarani Shahjadpur, Gulshan, Dhaka Phone: 8824575

Rekabi Bazar Branch Sadarghat Branch Rekabi Bazar, Mirkadin 78 Loyal Street (Patuatuly) Munshigonj-1501 Phone: Sadarghat, Dhaka-1100 02525 62526 Phone: 7122714 Tan Bazar Branch 52 S. M. Maleh Road, Tan Bazar, Narayangonj-1400. Cable-CITYBANK Phone: 9715261 9716454 Urdu Road Branch 10 Urdu Road, Lalbag Dhaka-1100 Phone: 7318221

Tangail Branch 1869/77 Main Road Habib Super Market, Tangail1900, P.O. Box-5 Phone: 54065, 5378 Uttara Branch House-8, Sector-7. Uttara Model Towen, Rabindra Sarani, Dhaka-1230 Phone: 8953695 Zinzira Branch Gulshan Avenue Branch Tinpatty Zinzira Branch 136, Gulshan Avenue, Keranigonj, Dhaka-1310 Gulshan - 2, Dhaka Phone: Phone: 7772782 PABX – 8813483,

Principal Office Jiban Bima Tower 10 Dilkusha CIA,Dhaka. PO.Box -3381,Cable-BANKCITY Phone: 9565915,9553137,9553147 PABX 9565925-34 Shaymoli Branch 23/6 Khilji Road Shaymoli, Mohammadpur, Dhaka-1207 Phone: 8150369, 0171404153 Tangi Branch Tangi Bazar, Gazipur-1710 Phone: 9800253 VIP Road Branch 35/1 Purana Paltan lane VIP Road, Dhaka-l000 Phone: 9348947

8814375, 8813126 Chittagong Zone Agrabad Branch 11, Rnlay House Agrabad Commercial Area Chittagong-4100. Cable: CITYAGRA Phone: 716210, 502638 PABX: 720631-3,726279-80 Fax: 880-31-720962 Chawkbazar Branch Marium Tower 452/494 Kapashgola Road Chwakbazar, Chittagong Phone: 2551697, 25516 Feni Branch Panchgachia Road Feni3900, P.O. Box-30 Phone: 73430, 74169

Khatunganj Branch 282, Khatungonj Chittagong-4000 Cable: CITYKHATUN Phone: 617647,638054 Fax: 88-031-012681 Pahartali Branch Dhaka Trunk Road Double Mooring, Chittagong-4202 Phone: 751570 Brahmanbaria Branch 1329/1 Kawtoli, Mouza: Kawtoli, P.S. Brahmanbaria, District: Brahmanbaria Phone: 01715490460

Anderkilla Branch 38 Nasir Ahmed Chowdhury Road Andarldlla, Chittagong4000 Phone: 613476

Bandartila Branch 2461, Bandartila South Halishahar, Chittagong-4218 Phone: 742200

Chowmuhani Branch 49 Kalitala Road Begumgonj, Noakhali3821 Phone: 52068

Cox's Bazar Branch Ali Nur Plaza (1st Roor)350/A, Main Road, Wast Bazar Ghata, Cox's Bazar Phone: 64385 Jubilee Road Branch Kadamtoli Branch 181, Golap Shing lane 376, Dhaka Trunk Road 36/44 Enayet Bazar, Kadamtali, Chittagong-4000 Jubilee Road Chittagong- Cable: CI1YKADAM Phone: 4000 502568, 712006 Cable : CITYJUBILEE Phone: 612104, 636153 Lakshmipur Branch Arat Patti Thana Road Laxmipur-3700 Phone: 55370

O.R. Nizam Road Branch 28/29 Mian Highway CDA Avenue, Chittagong-4000 Phone: 654432

Patherhat Branch Satkania Branch P.O. Gujra Nowapara Satkania, Chittagong-4386 Raozan Chittagong-4346 Phone: 56337 Phone: 2571175 Prabartak Branch Al Noor Badrun Centre, 1st floor Probartak Mor OR Nizam Road, Chittagong Phone: 01672585858

Sylhet Zone Amberkhana Branch Bandar Bazar Branch Airport Road Amberkhana, 897 Bandar Bazar SylhetSylhet-3100 Phone: 715516 3100, P.O. Box-117 Phone: 714552, 714553 Bishwanath Branch Dhaka Dakshin Branch

Beani Bazar Branch Hospital Road, Nayagram, Beani Bazar, Sylhet-3170 Phone: 56005 Jagannathpur Branch

Khorshed Ali Shopping Dhaka Dakshin Golapgonj Pourasava Road P.O. Complex (1st floor), Sylhet-3161 Phone: 87016 Jagannathpur, SunamgonjRampasha Road, Natun 3060 Phone: 88015 Bazar, Bishawnath, Sylhet Phone: 0389118251 Moulvi Bazar Branch Kushumbagh Shoping City Sylhet Road, Moulvi Bazar Phone: 0861-52840

Srimongal Branch Zinda Bazar Branch Moulvibazar Road Kaniz Plaza Bhabon, Zinda Sreemangal, Moulvibazar- Bazar, Sylhet-3100 Phone: 3210 Phone: 71528, 88024 714196

Khulna Zone Barisal Branch Benapole Branch 19,Sadar Road, Barisal-8200 Selim Sumon Super Phone: 64139, 53739 Market, Jessore Road Benapole, Jessore-7431 Phone: 76525 Jessore Branch Khulna Branch 28,29 M. K. Road, Kotwali, 7 Sir Iqbal Road, KhulnaJessore-7400 9100, PO Box. 185, Cable: CITYBANK Phone: Cable: CITYBANK Phone: 73749,65920 720380, 720381 Fax: 88041-732995 Satkhira Branch 400/367 Baro Bazar Sarak, Satkhria-9400.Phone:63223 Bogra Zone Bogra Branch 200 Razabazar Bogra-5800, PO. Box-17 Cable: CITYBANK Phone: 65835,65836 Fax: 88-05168012 Gobindaganj Branch PS. Gobindagonj, Gaibandha-5700 Phone: 75074 Rangpur Branch Station Road Rangpur-5400 Phone: 63538,63887 Fax: 88-0521-63887 Sherpur Branch Mohona Shoping Centra, Sherpur, Bus Stand, P.O. Sherpur Bogra Phone: 77216, 88012

Chapai Nawabgonj Branch Zebunnessa Super Market, 11, Godagari Road, PO. Nawabgonj Sadar, Newabgonj-6300 Phone: 55025 Pabna Branch 288/1 Aurangzeb Road Phone: 65576 Fax: 880731-65576 Saidpur Branch 361 Shahid Dr. Zikrul Hoque Sarak, P.O. Saidpur, Nilphamari-5310 Cable: CITYBANK Phone: 2350

Faridpur Branch 5/1 Shaikh Mujib Road Nee/tuly, Faridpur-7800 Phone: 62668 Kushtia Branch 14 R.A. Khan Chowdhury Sarak, Kaderi Super Market, Kushtia-7000 Phone: 61850, 54422

Dinajpur Branch Nimtala Dinajpur-5200 Phone: 64707

Rajshahi Branch 125 Natore Road Shaheb Bazar, Ghoramara Rajshahi6100 Phone: 776311, 774648 Serajganj Branch Shaheed Sohrawardy Sarak, Sirajgonj-6700 Cable: CITYBANK Phone: 62489

Comilla Zone Chandpur Branch 57/54 Comilla Road, P.O. Box-44, Chandpur-3600 Phone: 63682 Daulatganj Branch 252, Daulatgonj Laksham, Comilla-3570 Phone: 51390

Chouddgram Branch P.O. Chouddaram, Comilla-3550 Phone: 77314,77304, Ext. 81 Hajiganj Branch Main Road Hajigonj, Chandpur-3610 Phone: 75369

Comilla Branch Monohorpur Kandirpar Comilla-3500 Phone: 65514, 76634 Kochua Branch Golbahar Himagar Road, Kachua, Chandpur -3630 Phone: 08425-56226

Table 2: List of Branch 4.1. FINANCIAL PERFORMANCE OF THE BANK The City Bank Ltd is operating into private Commercial Banking 2 decades. It is a top bank among the oldest five Commercial Banks in the country, which started their operations in 1983. The financial observation of the Bank will depict its various performance related parameter to review the financial and management strength. Five years performance at a glace is given into the table below: Particulars/ Year Authorized Capital Paid up Capital Statutory Reserve Other Reserve Retained Earning Total Share holder Equity Deposit Loans and Advance Import Export Investment Total Asset Total Income Total Expenses Profit before Provision Total Provision Profit before Tax (after provision) Provision for Tax Net Profit after Tax Return on Equity (%) Return on Assets (%) Capital Adequacy Ratio (%) Credit Deposit Ratio (%) Earning per Share Book Value per Share

2004 400.00 240.00 213.81 240.60 102.78 797.21 20046.31 14778.55 17292.74 12198.69 3379.26 23698.56 2475.04 1799.17 675.87 472.41 203.46

2005 1750.00 480.00 378.42 240.62 78.43 1417.47 22236.96 17027.84 17909.94 18218.97 3161.38 26375.56 2707.84 1785.79 922.05 99.00 823.05

2006 1750.00 720.00 604.61 240.62 33.17 1958.40 30647.83 23326.34 21363.21 28211.22 3648.27 35303.74 3476.85 2227.99 1248.86 117.93 1130.93

2007 1750.00 1080.00 896.95 573.10 34.54 2530.90 39571.94 30789.02 32096.39 28211.22 6405.08 47445.75 5217.43 3722.73 1494.70 841.68 653.02

2008 1750.00 1188.00 735.26 573.10 38.11 2874.37 40539.63 30789.02 32096.39 6213.50 6405.08 47445.75 5217.43 3722.73 1494.70 841.68 653.02

190.00 13.46 1.70% 0.06% 6.56%

442.79 380.26 34.34% 1.52% 9.78%

590.00 540.93 32.05% 1.75% 9.63%

413.00 240.02 10.69% 0.58% 9.21%

74% 5.61 329.37

77% 79.22 230.70

76% 75.13 272.00

78% 22.22 234.36

Market Value per Share 227.65 877.75 No. of Employees 1692 1803 Executive 164 178 Officer 943 1032 Staff 585 593 Number of Branch 77 77 AD Branch 20 20 No. of Shareholders 3247 3486 Table 3: Financial performances over 5 year’s period

770.75 1829 203 1022 604 77 20 5678

390.00 1989 200 1178 611 78 22 8294

4.2. KEY FINANCIAL INDICATORS 4.2.1. Deposit: Total deposit of the bank as on December 31, 2008 stood Tk. 40,540 million against Tk.

40,881 million of the previous year registering a marginal negative growth of Tk. 341 million (0.83%). This reduction in the deposit was the result of a strategic plan by reducing high interest bearing deposits, to not only reduce interest expense but also match reduced lending in order to improve NPL (Non Performing Loan) of the Bank. Deposit position of last 5 years is depicted in the following bar diagram Graph 2: Deposit in million BDT from 2004-2008 Cost of deposit however, increased during the year under report, due to high interest rate allowed against long term fixed deposit in earlier years. Deposit mix of the bank as on December 31, 2008 along with 2007 comparison is depicted in the table below: Type of Deposit

2007

Current & Others Savings Short Term Fixed Deposit Scheme Total Deposit

Amount 5815.47 7167.83 2829.34 18324.06 6744.71 40881.41

2008 Share (%) 14.23% 17.53% 6.92% 44.82% 16.50% 100%

Amount 7625.59 7761.12 3229.63 16308.43 5614.86 40539.63

Table 4: Deposit Distribution in 2007 and 2008

Share (%) 18.81% 19.14% 7.97% 40.23% 13.85% 100%

Graph 3: Deposit distribution in year 2007

Graph 4: Deposit distribution in year 2008 4.2.2. Loans and advances The loans and advances portfolio of the bank at the end of the year 2008 stood at Tk. 26788 million with loans diversified in both conventional credit and finance based on Islami Shariah. Total loan volume of the bank during the review the City Bank Ltd. year decreased by Tk 4001 million, 13% reduction from previous year. The outstanding amount of loans and advances at the same period of previous year was Tk 30789 million. A major consolidation effort was undertaken to exit, reschedule, recover deteriorating credits in order to improve NPL (Non Performing Loan), hence this reduction in loans and advances was part of a strategic plan. Last 5 years loans and advances volume is presented below:

Graph 5: Sector wise loan portfolio 2007

Graph 6: Sector Wise Loan Portfolio 2008 Sector Agriculture Large & Medium Scale Industries Small & Cottage Industries Commerce & Trade Insurance Real State & Service Transport & Communication Other Total loans & Advances

2007 Amount 147 4863.1 25.58 7947.17 5732.69 238.43 11835.04 30789.01

Share (%) 0.48% 15.79% 0.08% 25.81% 18.62% 0.77% 38.45% 100%

2008 Amount 5.22 5541.25 27.90 10998.50 2158.90 284.61 7772.08 26788.46

Share (%) 0.02% 20.69% 0.10% 41.06% 8.06% 1.06% 29.01% 100%

Table 5: Loan Portfolio allocation, sector wise, for the year 2007 & 2008 Graph into the table show unequal proportions of loan distributions where few entries dominant the major portion of loans & advances share. 4.3. RATIO ANALYSIS Ratio analysis is a powerful tool of financial analysis. A ratio is defined as the indicated quotient of two mathematical impressions and as the relationship between two or more things. In financial analysis, a ratio is used as benchmark for evaluating the financial position and performance of a firm. I am going to show some ratios for the measurement of the performance of City Bank Limited. 4.3.1. Return on Asset Particulars Net Income Total Asset Ratio

2004 13.46

2005 380.26

2006 540.93

2007 240.02

2008 240.02

23698.56

26375.56

35303.74

47445.75

0.06%

1.44%

1.53%

0.51%

Table 6: Return on Asset from the year 2004-2008 Net income to total asset indicates how much income, a bank has generated for each taka investment in total assets. From the above scenario the City Bank Ltd see that from 2004 to 2008 return on assets has volatile. 4.3.2. Return on Equity Particulars Net Income/ Total Equity Ratio

2004 13.46 797.21 1.69%

2005 380.26 1417.47 26.83%

2006 540.93 1958.40 27.62%

2007 240.02 2530.90 9.48%

2008 240.02 2530.90 9.48%

Table 7: Return on Equity from the year 2004-2008 This ratio indicates how much return City Bank has generated for the stock holder’s equity i, e, the return obtained by the shareholders on their investment in the company’s stock. In 2004-2008 it was 1.69%-9.48% but it has equal in 2008 and was 9.48%, which indicates that performance has equal in 2008 (between 2007 -2008). 4.3.3. Profit Margin Particulars Net Income Operating Income Ratio

2004 13.46

2005 380.26

2006 540.93

2007 240.02

2008 240.02

2475.04

2707.84

3476.85

5217.43

0.54%

14.04%

15.56%

4.60%

Table 8: Profit Margin from the year 2004-2008

Graph 7: Total Income from 2004-2008 This ratio indicates how much net income City Bank has generated from operating income. In 2004 it was .54% but it has increase successively. In 2008 it was 4.60%, which indicates that performance has increased in 2008 but compare to preceding two years it has decreased.

4.3.4. Net Operating Margin Particulars Net Operating Income Total Asset Ratio

2004 2475.04 23698.56 10.44%

2005 2707.84 26375.56 10.27%

2006 3476.85 35303.74 9.85%

2007 5217.43 47445.75 11.00%

2008 5217.43 47445.75 11.00%

Table 9: Net Operating Margin from the year 2004-2008

raph 8: Net Operating Margin from the year 2004-2008 This ratio indicates how much net operating income City Bank has generated from total assets. In 2004 it was 10.44% but it has increase successively. In 2008 it was 11.00%, which indicates that performance has increased in 2008. 4.3.5. Asset Utilization Particulars Operating Income/ Total Asset Ratio

2004 2475.04

2005 2707.84

2006 3476.85

2007 5217.43

2008 5217.43

23698.56

26375.56

35303.74

47445.75

3.28%

3.65%

1.9%

2.86%

Table 9: Asset utilization from the year 2004-2008

Graph 9: Asset utilization from the year 2004-2008 This ratio indicates how much operating income City Bank has generated from total assets. In 2004 it was 3.28% but it has decreased successively. In 2008 it was 2.86%, which indicates that performance has increased in 2008. 4.3.6. Loan Ratio Particulars Loan / Total Asset Ratio

2004 14778.55 23698.56 62.36%

2005 17027.84 26375.56 64.56%

2006 23326.34 35303.74 66.07%

2007 30789.02 47445.75 64.89%

2008 30789.02 47445.75 64.89%

Table 11: Loan Ratio from the year 2004-2008

Graph 10: Loan Ratio from the year 2004-2008 This ratio indicates how much loan City Bank has generated from total assets. In 2004 it was 62.36% but it increased successively. In 2008 it was 64.89%, which indicates that performance has equal in 2008. 3.7. Loss Rate

Particulars PLL / Total Loan Ratio

2004 282.41 14778.55 1.91%

2005 -343.79 17027.84 -2.02%

2006 -472.07 23326.34 -2.02%

2007 428.68 30789.02 1.39%

2008 428.68 30789.02 1.39%

Table 12: Loss Ratio from the year 2004-2008

Graph 11: Loss Ratio from the year 2004-2008 This ratio indicates how much City Bank has generated from total loan. In 2005 and 2006 it was negative it indicates that time bank was performing very bad but in 2007 it was increased in 1.39%which indicates that performance has increased in 2007. 4.3.8. Earning Per Share (EPS) Particulars NI / Total Outstanding Share Ratio

2004 13.46 160.00 8.14%

2005 380.26 160.00 237.67%

2006 540.93 160.00 338.08%

Table 13: EPS from the year 2004-2008

Graph 12: EPS from the year 2004-2008

2007 240.02 160.00 150.01%

2008 240.02 6405.08 3.75%

The above ratios show that in 2004 earning per share was taka 8.14 but in 2008 it became taka 3.75 compare to the previous three years it decreased which indicate that the bank is not performing well. 4.3.9. Deposit to Capital Particulars Deposit / T. Capital Ratio

2004 20046.31 797.21 25.13%

2005 22236.96 1417.47 15.69%

2006 30647.83 1958.40 22.05%

2007 39571.94 2530.90 16.6%

2008 39571.94 2530.90 16.6%

Table 14: Deposit to Capital from the year 2004-2008

Figure 13: Deposit to Capital from the year 2004-2008 This ratio indicates how much deposit City Bank has generated from total capital. In 2004 it was 25.13% but it has increased. In the next year again decreased in the year 2005. In 2008 it was 16.6%, which indicates that performance has decreased in 2008. The ratio of net deposit to total capital of the bank has volatile over the years. 4.3.10. Deposit to Employee Particulars Deposit / Employee Ratio

2004 20046.31 1692 11.85%

2005 22236.96 1803 12.33%

2006 30647.83 1829 16.76%

2007 39571.94 1989 19.90%

Table 15: Deposit to Employee from the year 2004-2008

2008 39571.94 1989 19.90%

Figure 14: Deposit to Employee from the year 2004-2008 This ratio indicates how much deposit City Bank has generated from employee. In 2004 it was 11.85% but it has increased successively. In 2008 it was 19.90%, which indicates that performance has increased in 2008. 4.3.11. Loan to Deposit Particulars Loan / Deposit Ratio

2004 14778.55 20046.31 0.74

2005 17027.84 22236.96 0.77

2006 23326.34 30647.83 0.76

2007 30789.02 39571.94 0.78

2008 30789.02 39571.94 0.78

Table 16: Loan to Deposit from the year 2004-2008

Figure 15: Loan to Deposit from the year 2004-2008 Loans to deposit ratio indicates the liquidity position of the bank and at the same time the utilization of the deposits. This ratio should be less than one; a high ratio indicates low liquidity position as well as the better capacity of the bank to use the deposit money. When loan is less than one bank incurs loss .The above ratios are less to one, which indicates the low performance of the bank in this regard. In 2004 it was 0.74% but in 2008 it was 0.78%.

5.1. CUSTOMER SATISFACTION& ANALYSIS 5.1.1 What is Customer service? Customer service is the set of process that a business undertakes during its interaction with its customers. It can also refer to a specific person or desk which is set up to provide general assistance to customers. CRM (Credit Risk Management) is system with which to identify and track customer’s needs. Four basic steps will help to ensure a greater effectiveness in your CRM system:    

Establish clear and specific objectives regarding the CRM needs you wish to fulfill, Plan a realistic strategy to accomplish the set objectives, Identify a CRM software that matches up with set goals, Evaluate on a regular basis to train and adapt your strategy to your progressive experience.

5.1.2 What is Customer Satisfaction? It is the satisfaction of customers in terms of how they are satisfied with the politeness, knowledge and promptness of employees in handling busy customers. It also takes into consideration the perception of the customers as to whether the product or service is worth what they are paying for it. Customers of The City Bank Limited have a good perception about the quality of service provided by them. From our survey we found that customers are satisfied with the overall service of CBL. All the offers provided by CBL are very beneficial for the customers. But in case of service benefit is not the alone factor that determines the level of satisfaction. There are many other things that take control over the overall satisfaction. For instance, service having attractive offers may fail only because of rude behavior or carelessness of the provider. So it is very important to ensure other factors that are related with the success of the service. 5.1.3 The five factors to measure efficiency: There are five major factors identified by the experts that are essential to assure the quality of better service that will lift the level of efficiency. They are reliability, responsiveness, assurance, empathy and tangibles. These five factors determine the quality of interaction between customer and provider, the quality of: Physical environment quality and out come quality of the service which leads the overall service to the position of excellence of quality. From our survey we found that how these factors affect their satisfaction level. Reliability: It means ability to perform the promised service accurately. In case of banking reliability is very important. Because if the client pretends that the company is not able to continue its service proper in the future they will not interested to banking with PBL. From our survey we see that most of the customers choose CBL because they think it is reliable compare to others in case of providing various unique features (Bangladesh international). On the whole customers have a perception that CBL is capable to provide all the services they offered.

Responsiveness: It is another vital factor that controls customers’ perception about quality of service. It means willingness of the employees to help the customers. According to the perception of customers responsiveness is very important to increase the quality of the service. Even the customers ranked the importance of responsiveness in banking 7 out of 9. If employees do not response immediately to the need of the customers, valuable time of the customers will be spent unnecessarily. Even the customer may become frustrated whether he will get the service or not. The customers of CBL replied that CBL responses promptly. Assurance: It means the knowledge and ability of the employees to develop trust in the mind of the clients about the completion of the task properly and on time. Customers have a great perception about CBL that they perform according to their promise. Assurance has a great impact on the quality of the service because if promises are not kept customers may switch to other bank. Empathy: To ensure better service it is very important for the employees to have empathy. Empathy means giving individual attention and taking extra care of the customer. CBL has young and energetic employees that interact with customers nicely and they continuously ask about their satisfaction and dissatisfaction of every individual. Tangibles: Tangibles are very important factor because it directs the customer mind about the quality of the service. Tangibles are physical facilities, equipment etc used in the context of service company. Interior decoration, sitting arrangements, temperature of the room, cleanness odor everything controls the perception of customers about the quality of the service. CBL has confirmed well interior decoration in all there branches and they try keep the standard of there services cape same all over the world. They use all the elements used in there company like chairs, carpet etc imported from Hong Kong and all of them are same for all branches.

5.1.4. Factors that determine service quality and Customer Satisfaction Reliability

Situational factors

Interaction quality

Responsiveness

Assurance

Empathy

Physical environment quality

Outcome quality

Service quality

Customer Satisfaction

Personal factors

Tangibles

Graph16: Factors that determine service quality and customer satisfaction 5.2. SWOT ANALYSIS Both manufacturing and service oriented business organizations start to possess some weakness as time elapse. The weaknesses of an organization can be turned into opportunities if recognized on time. Moreover, overlooking any threat may result in loosing valuable business opportunities. For this reason, an assessment of every business organization is required to judge the performance from the aspects of its Strength, Weaknesses, Opportunities and Threat (SWOT). SWOT Analysis of City Bank Ltd. is stated below: 5.2.1. TRENGTH 1. SUPERIOR SERVICE QUALITY: CBL provides excellent and consistent quality service in each and every sector of its operations to the customers. It makes the customers satisfied. 2. TOP MANAGEMENT: The top management of CBL is very experienced and wellknown in the Banking sector of Bangladesh. They are contributing heavily towards the growth and development of the Bank. Experienced bankers and corporate personnel have formed the management. 3. COMPANY REPUTATION: CBL has already created a good reputation in the Banking Industry of Bangladesh.

4. MODERN FACILITIES AND COMPUTER: From the very beginning, CBL tries to furnish its work surrounding with modern equipment and furnitures. For speedy service to the customer, CBL already installed money-counting machine in the teller counter. The bank has computerized banking operation under software called ‘PC Bank’. Moreover, computer printed statements are available to internal use and occasionally for the customers. 5. INTERACTIVE CORPORATE CULTURE: The Corporate Culture of CBL is much more interactive compare to other local organizations. This interactive environment encourages the employee to work attentively. 6. CUSTOMER SATISFACTION: Customer Satisfaction level of CBL is quite good. Informal conversation with customers about the service quality helps the management to provide services according to their choice which makes customers satisfied. 7. GOOD NUMBER OF BRANCHES: CBL already has 83 online branches all over Bangladesh to provide quality service to every level of customer. 8. ATM SERVICE: Some services of the bank are automated which attract large number of clients. For instance, the bank provides Automated Teller Machine (ATM) services in several locations. 9. ONLINE BANKING: The bank recently introduced online banking which enabled it to automate all of its operations. At present, several banking functions are performed by computers. 5.2.2. WEAKNESSES 1. LIMITED WORKFORCE: CBL, Mouchak Branch has limited workforce. There is shortage of people. As a result, many of the employees are burdened with extra workloads and work late hours without any overtime facilities. This might cause high employee turnover which is not good for the organization. 2. LENGTHY LOAN GRANTING PROCESS: The credit sanction and disbursement procedure is quite lengthy, because the loan granting process of the Mouchak Branch of CBL is very strict that sometimes effects negatively on customer’s mind. 3. CENTRALIZED AUTHORITY: Delegation of authority is centralized which makes the employee to realize less responsibility. Thus, the employee morale is deteriorated. 4. LENGTHY EVALUATION PROCESS: The credit proposal evaluation process is lengthy. Therefore, sometimes valuable clients are lost and the bank becomes unable to meet targets. 5. LESS USE OF ANNUAL CONFIDENTIAL REPORT: No substantive use of Annual Confidential Report (performance evaluation form of the employee) to reward or to punish the employee. Hence the employee becomes ineffective. 6. LESS PROMOTIONAL INITIATIVE: The bank lacks aggressive advertising and promotional activities to get a broad geographical coverage.

7. FEW ATM BOOTHS: The bank has only a few ATM booths and not in proper places. So, the scope of using ATM card is limited. 5.2.3. OPPORTUNITIES 1. SUPPORT FROM BANGLADESH BANK: Bangladesh Bank has rendered its full support to the Banking sector for a sound financial status of the country as a representative of Government, as it has become one of the vital sources of employment in the country now. Such government concern will facilitate and support the long-term vision of CBL. 2. DIVERSIFIED INVESTMENT OPPORTUNITY: There is a great opportunity to take new dimension of Banking such as Specialized Banking and also there are many sectors where CBL can give special privileges. 3. EVOLUTION OF E-BANKING: Emergence of E-Banking will open more scope for CBL to reach the clients not only in Bangladesh but also in the Global Banking Arena. Although the Bank has already entered the world of E-Banking but yet to provide full electronic Banking facilities to its customer. 4. INNOVATIVE PRODUCTS: The bank can introduce more innovative and modern products and services for their customers. 5. MICRO CREDIT: The bank can offer micro credit business for individuals and small businesses. 6. DIVERSIFIED PORTFOLIO: It can diversity its portfolio by taking new sector. 7. NEW BRANCHES IN REMOTE AREAS: Many branches can be opened to reach the bank’s services to the remote areas. 8. EFFICIENT RECRUITMENT: It can recruit more efficient and experienced persons to give fast and efficient service to the customers. 5.2.4. THREATS 1. CONTEMPORARY BANKS: The Contemporary Banks like, Dhaka Bank, Dutch Bangla Bank, Mutual Trust Bank are its major rivals. They are carrying out aggressive campaign to attract lucrative clients as well as big time depositors. The CBL should remain vigilant about the steps taken by these Banks, as these will in turn affect the Bank strategies. 2. MULTINATIONAL BANKS: Due to the booming energy sector, more foreign Banks are expected to operate in Bangladesh. Multinational as well as the fast growing local banks with modern products and services are capturing huge market within short period a resulting to switch over the existing customers of the bank.

3. RESTRICTION FROM BANGLADESH BANK: Bangladesh Bank exercises strict control over all Banking activities. Sometimes the restrictions imposed by Bangladesh Bank, can create barrier in the normal operations and policies of the Bank. 5.3. ANALYSIS OF RESPONSES After getting all the data from the clients I have analyzed through the SPSS software using different statistical tools to find out the efficiency level of the bank branch. Mainly I have used the popular tools for measuring satisfaction of the customer, which measure customer satisfaction is standard deviation, frequency analysis, cross tabulation. 5.3.1. DESCRIPTIVE ANALYSIS The transformation of raw data into a form that will make them easy to understand and interpret; rearranging ordering, and manipulating data to generate descriptive information. Descriptive Statistics N

Minimum Maximum Mean

How much do you satisfied 51 1 with CBLs' service of giving statement? Valid N (list wise) 51

2.20

Std. Deviation .601

Though there are five options for this question respondents were selected three answers. Those are highly satisfied, satisfied and moderate. Mean 2.20 indicates that more than half number of respondents (31) select satisfied answer. They neither highly satisfied nor moderate satisfied regarding CBLs' service of giving statement. Standard deviation is .601 which means the distance of the respondent answer is not that much far from one respondent to another respondent. Descriptive Statistics N Minimum Maximum Mean How much do you satisfied 51 1 3 2.04 with CBLs' Service of updating statement? Valid N (list wise) 51

Std. Deviation .599

Here respondents were also selected three options among five. Mean 2.04 indicates that most of the respondent (33) goes for satisfied option. There percentage is 64.7. Descriptive Statistics N What is your opinion scale 51 regarding current service of CBL? N (list wise) Valid 51

Minimum Maximum Mean 3 5 3.98

Std. Deviation .678

All the respondents' have selected 3 to number 5 option means average, good and excellent option. More than half number of respondents (28) gave their opinion good regarding current service level of CBL. Mean 3.98 almost 4 indicates the answer is neither average nor excellent and standard deviation .678 means respondents answer was not far distance from each other. Descriptive Statistics N Which section do you like 51 Valid N (list wise) 51

Minimum Maximum Mean 1 5 1.84

Std. Deviation .987

Mean 1.84 is around 2. It means maximum number of respondents (cash - 23, General banking - 18) answered first two options. Their total number is 41 out of 51. Standard deviation .987 proves it perfectly. It indicates the answer from respondents were so close with each other. 5.3.2 FREQUENCY ANALYSIS The arrangement of statistical data in a row-and-column format that exhibits the count of responses or observations for each category assigned to a variable called frequency table. Besides the frequency table we can also see the results by pie chart 1. What is your main occupation? Frequency Valid Business 14 Government service 3 Student or 10 apprentice Self employed 10 House-hold 10 Private service 4 Total 51

Percent 27.5 5.9 19.6 19.6 19.6 7.8 100.0

Valid 27.5 5.9 19.6 19.6 19.6 7.8 100.0

Cumulative Percent 27.5 33.3 52.9 72.5 92.2 100.0

What is your main occupation? Private service House-hold activities

Business

Government servic self employed

Student or apprentice

Graph 17: Occupation of client Among 51 respondents in CBL 14 respondents selected their occupation business. Three groups (student, self employed and house hold activities) each number contain 10 respondents. From my survey I saw very few government service holders maintain their bank account with CBL. Their number is only 3 among 51 respondents.

2. How you are related with CBL? Frequency Valid By current A/c 9 Saving A/c 21 Loan 8 Money gram 12 SSS 1 Total 51

Percent 17.6 41.2 15.7 23.5 2.0 100.0

Valid Percent 17.6 41.2 15.7 23.5 2.0 100.0

Cumulative Percent 17.6 58.8 74.5 98.0 100.0

How you are related with CBL?

SSS

By current A/c

Money gram

Loan Saving A/c

Graph 18: Relation with CBL Most of the respondents (41.2%) have selected their relation with CBL by saving account. Second largest (23.5%) relation between CBL and respondents came from money gram. 17.6% respondents were from current account and 15.7% were from loan customers. In the pie chart we can see green color from saving account and pink color from money gram. 3. From where did you get information of CBL? Valid Family Friend Advertisement Job/Colleagues Others Total

Frequency 12 20 10 5 4 51

Percent 23.5 39.2 19.6 9.8 7.8 100.0

Valid Percent 23.5 39.2 19.6 9.8 7.8 100.0

From where did you get information of CBL?

Cumulative Percent 23.5 62.7 82.4 92.2 100.0

Others Family

Job/Colleagues

Friend

Graph19: Information of CBL 62.7% respondents selected their option regarding CBL information they got from family or friends. It indicates that most of the CBL clients come by listening to others. For any organization it is very important factor. Because of CBLs' better service they got these 62.7% extra clients without any communication activities. 4. Why did you choose this particular branch? Frequenc Valid Nearest to home 25 Management is friendly 10 Known authorized 2 person Official/business 11 Others 3 Total

Percent 49.0 19.6 3.9 21.6 5.9

Valid 49.0 19.6 3.9 21.6 5.9

100.0

Why did you choose this particular branch?

others Offical/business

Known authorized person Mangement is friendly

Graph 20: Branch what customer prefer

Nearest to home

Cumulative Percent 49.0 68.6 72.5 94.1 100.0

Almost half percent (49%) respondents have preferred reason to choose this particular branch is "nearest to home". But I can't ignore the option "management is friendly" because 19.6% respondents have selected this one. During my survey most of the respondent told me CBLs' management is very friendly. But as their first choice reason was nearest to home. 5. How long you are involved with CBL? Valid < 1 year 1-2 years 2 - 3 years 3-4 years Others Total

Frequency 2 31 15 2 1 51

Percent 3.9 60.8 29.4 3.9 2.0 100.0

Valid Percent 3.9 60.8 29.4 3.9 2.0 100.0

Cumulative Percent 3.9 64.7 94.1 98.0 100.0

How long you are involved with CBL? others 3-4 years

<1 year

2-3 years

1-2 years

Graph 21: Involvement of the bank Most of my respondents (31 persons) selected their involvement was not too many year with CBL. Only 1 - 2 year they involved with CBL. If we consider pie chart it will be dearer. 15 respondents (29.4%) pick their involvement 2-3 years with CBL. But one thing I want to say that though they are not too much time involved with CBL but maximum of them give their opinion towards the CBL regarding better service. 6. What improvements would you like to see? Frequency Percent Valid Percent Cumulative Percent Valid Employee should be 4 7.8 7.8 7.8 cooperative More interest rate (for 12 23.5 23.5 31.4 a/c holder) Quick work 18 35.3 35.3 66.7 Improvement 6 11.8 11.8 78.4 customer service Less interest rate (for 6 11.8 11.8 90.2 loan customer) Others 5 9.8 9.8 100.0 Total 51 100.0 100.0

What improvements would you like to see?

less interest rate (for loan customer)

others

Employee should be cooperative more interest rate (for a/c holder)

Improvement customer service

Quick work

Graph 22: Improvement like customer

18 respondents (35.3%) wanted "quick work" as an improvement in CBL. 12 respondents wanted more interest rate than current rate. Their judgment was in CBL everything is fine but they give lower rate than others. So it should be rise. The same thing happened for loan customers. 6 (11.8%) respondents from loan want to see lower interest rate against their loan as an improvement in CBL. 5.3.3. ANALYSIS OF SELECTED CROSS TABULATION Cross tabulation is a technique for organizing data by groups, categories, or classes, thus facilitating comparisons; a joint frequency distribution of observations on two or more sets of variables. My selected cross tabulations are in the following. I also included vertical and horizontal bar chart with every cross tabulation. 1. GENDER * according to your account category, do you think interest rate is ok? Cross tabulation

GENDER Total

According to your account category, do you Total think interest rate is ok? Yes No No comment Male 7 10 16 33 Femal 6 3 9 18 13 13 25 51

My first cross tabulation is between gender and satisfied regarding interest rate. Among the 33 male respondents 16 didn't want to comment and 10 respondents said they are not satisfied with current interest rate. So we can easily understand maximum numbers of male clients are not satisfied with interest rate. The same case for female clients also.

18 16 14

According to Your AC

12 yes

no 8

no comment

6 4 2 0 Male

Famale

2. GENDER * what is your opinion scale regarding current service level of CBL? Cross tabulation What is your opinion scale regarding current service Total level of CBL? Average good excellent GENDER Male 6 21 6 33 Female 6 7 5 18 Total 12 28 11 51 Compare with male, more female respondents picked up excellent answer. Only 6 male respondents out of 33 choose excellent answer whereas 5 female out of 18 have selected excellent answer. If we compare female with male then female percentage is higher. Both 6 male and female respondents have selected average answer. Male respondents are liked to answer "good". 25

yes no Excellent

What is your Opinion? Average Good Excellent

0 Male

Famale

AGE * According to your account category, do you think interest rate is ok? Cross tabulation

20-30 30-40 AGE 40-50 50-60 Total

According to your account category, do you think interest Total rate is ok? Yes No No comment 2 5 5 12 5 4 14 23 5 2 5 12 1 2 1 4 13 13 25 51

Though most of the respondents are satisfied with other issue regarding CBL but they have problem with interest rate. If we consider bar diagram we will see that none of the age group said "yes" answer more than "no" or "no comment". 20 - 30 age group people are more dissatisfied with interest rate. Out of 12 only 2 respondents answered yes. 30 - 40 age group respondents answered no comment option more. In the diagram their line (blue color) is longer than other groups. 40 - 50 age group respondents answered more yes among all other age group.

According to You’re AC

14 12 10

Yes

No No comment

6 4 2 0 20-30

30-40

40-50

50-60

Age

4. AGE * what improvements would you like to see? Cross tabulation What improvements would you like to see?

20-30 AGE 30-40 40-50 50-60 Total

Employee More Quick should be interest work cooperative rate (for a/c holder) 2 5 2 2 4 7 3 6 1 3 4 12 18

Total

Improveme Less interest Others nt customer rate (for loan service customer) 2 4 6

1 2 3 6

4 1 5

12 23 12 4 51

Among the 51 respondent’s 18 respondents in different age groups wanted to see quick work and 12 respondents wanted to see more interest rate as an improvement of CBL. 50 - 60 age groups are more interested regarding quick work. 3 respondents out of 4 in these age groups have selected quick work as an improvement of CBL. If we look in the bar diagram we will see three age groups (30 - 40, 40 - 50, 50 - 60) want quick work (blue color). 8 7

Employee should be cooperative

More interest rate (for a/c holder)

Quick work

4 3

Improvem ent customer service

Less interest rate (for loan customer)

Other

0 20-30

30-40

40-50

50-60

5. AGE * which facility of CBLs' satisfies you most? Cross tabulation Which facility of CBLs' satisfies you most? Less time AGE

20-30 30-40 40-50 50-60

7 6 3 16

Total

Employees are Better service cooperative 2 3 8 9 5 4 2 2 17 18

Total

12 23 12 4 51

There were four options for satisfied question. But none of the respondent out of 51 has selected interest rate as an answer. My previous cross tabulation also proved that clients of CBL are not satisfied with their interest rate. 20 - 30 age group respondents have selected less time as a facility that CBL offer for them, but none of the respondent from 50 - 60 age groups picked up less time as a satisfying facility from CBL. "Employees are cooperative" have been selected by 40 - 50 age group respondents. 30 - 40 age group respondents picked up better service as facility in CBL. 10 9 8 7

Less time

employees are cooperative

5 4

Better service

3 2 1 0 20-30

30-40

40-50

50-60

6. AGE * what is your opinion scale regarding current service level of CBL? Cross tabulation What is your opinion scale regarding Total current service level of CBL? AGE

20-30 30-40

average 3 3

good 7 12

excellent 2 8

12 23

40-50

50-60

1 12

3 28

4 51

Total

If we consider all 51 respondents then we will see more than fifty percent (28) respondents select neither average nor excellent answer. No one has selected "poor" answer. More or less all the age group has given same type of answer in this cross tabulation. 14 12 10 8

average

excellent

good

4 2 0 20-30

30-40

40-50

50-60

7. What is your main occupation? * Which facility of CBLs' satisfies you most? Cross tabulation Which facility of CBLs' satisfies you most? Total Less time Employees are Better service cooperative Business 4 6 4 Government service 3 What is Student or 7 1 2 your main Self apprentice employed 2 5 3 occupation? House-hold 3 3 4 activities Private service 2 2 Total 16 17 18

14 3 10 10 10 4 51

By occupationally respondents were not interested to answer interest rate as a CBLs' facility. Government service holder answered "better service" as a facility in CBL. Student or

apprentice picked up less time whereas business people choose "employees are cooperative" as CBLs' facility 8 7 6 5 4 3 2 1 0

Less time Employees are cooperative Better service

. 8. How long you are involved with CBL? * How much do you satisfied with CBLs' service of giving statement? Cross tabulation

How long < 1 year you are 1 - 2 years involved with CBL? 2-3 years 3 - 4 years > 4 years Total

How much do you satisfied with CBLs' Total service of giving statement? Highly Satisfied Moderate satisfied 2 2 1 2

18 10

12 3

31 15

1 1 5

1 31

2 1 51

I got one person in my survey who involved with CBL more than 4 years. That person is highly satisfied with CBLs' service of giving statement (red color in bar diagram). 2 persons whom are involved less than 1 year with CBL neither highly satisfied nor moderate satisfied with CBLs' service of giving statement (Green color in the bar diagram). Important outcome is more than fifty percent (31) respondent satisfied with this service. 20 18 16 14 12

Highly satified

Satis fied

Moderate

6 4 2 0 < 1 years

1-2 years

2-3 years

3-4 years

>4 years

other

How long you are involved with CBL? 9. How you are related with CBL? * Which section do you like most? Cross tabulation Which section do you like most? Cash General Loan Money banking division gram By current 2 4 3 A/c Saving A/c 9 11 How you Loan 4 1 3 are related Money gram 7 2 3 with SSS 1 CBL? Total 23 18 6 3

Others

Total

1 -

9 21 8

12 1 51

Cash is more acceptable than other section of CBL. 23 respondents out of 51 have selected this division. One interesting thing t identified here that is though 12 respondents related with CBL by money gram buy they liked cash division. If we look in the bar diagram it will more clear to us. Current account and saving account holder (green line in the diagram) like general banking section more. 12 10 Cash

Genaral banking

loan division Money gram

Other

2 0 By current A/c

Saving A/c

Loan

Money gram

SSS

How you are related with CBL? 10. How you are related with CBL? * On average, how many times you visit in CBL (in a month)? Cross tabulation On average, how many times you visit in CBL (in a Total month)? 1 time 2 times 3 times 4 times > 4 times current 6 1 2 9

How you By are related A/c with CBL? Saving A/c 6 Loan 1

11 4

3 2

1 1

21 8

Money gram Others

Total

1 12

1 51

Not a single current account holder visit CBL less then 2 times in a month. It means they have more connection with the bank then others. Money gram respondents come to bank only 1 to 2 times in a month. Out of 21 respondents saving account holder only 1 person visit more than 4 times in the CBL in a month. 12 10 1 Times

2 Times 6

3 Times 4 Times

> 4 Times

2 0 By current A/c

Saving A/c

Loan

Money gram

SSS

How you are related with CBL? 11. How you are related with CBL? * What improvements would you like to see? Cross tabulation Total

What improvements would you like to see?

By current A/c How Saving you are A/c related with Loan CBL? Money gram

Employee More Quick Improve should be interest work ment cooperative rate (for customer a/c service holder)

Less Other interest s rate (for loan customer)

SSS Total

1 4

1 6

"Quick work" is selected by 18 respondents out of 51 as an improvement in CBL. Among them (18), most of the respondents (10) from money gram (blue color in the diagram). Saving account holder wanted to see more interest rate (green color in the diagram) whereas loan customers wanted to see less interest rate against their loan. How you are related with CBL? 12 10

Employee should be cooperative

More Interest rate (for a/c holder)

Quick Work

Improvement Customer Service

Less Interest Rate

0 By current A/c

Saving A/c

Loan

Money gram

SSS

Others

5.4. FINDINGS The finding is based samples.  Clients of CBL are not dissatisfied and highly dissatisfied in any service of CBL;  Most of the clients in CBL are satisfied with CBLs' service of giving statement. It's a good sign for CBL;  Cash is most favorite section in CBL;  Business persons (27.5%) are more related with CBL then other five occupational groups. Students, household activities and self employed are in equal (19.6%) position whereas government service holder (5.9%) and private service holder (7.8%) are less relation with CBL;  Among the 51 respondents in different account most of the clients are from saving account (41.2%).  The majority numbers of clients (62.7%) get information about CBL from family or friends. Rests of all (37.2%) get information from advertisement, job/ Colleagues and others.  Nearest to home is the first choice of the clients (49%) to select this Mouchak branch of CBL.

 Most of the clients (60.8%) based on my survey are involved with CBL from 1 to 2 years. It indicates with in two years many people open account in CBL;  Quick work clients (35.3%) want to see as an improvement in CBL;  Interest rate is an important factor for banks. Clients from saving and current account holder (23.5%) want to see interest rate higher;  Maximum number of male (21) clients opinion regarding current service level is "good" whereas only 7 female clients support this;  Only 13 in different account holder support current interest rate;  20-30 age group clients want more interest rate;  No one from 50 - 60 age group mentioned excellent answer regarding current service level of CBL;  Out of 12 respondents from money gram only 3 like money gram section though they have more relation with money gram. 6.1. RECOMMENDATION For acquiring more of the target market and managing the customer effectively, these may be a few guidelines for Retail Banking Division of the City Bank Limited:  Retail Banking units should employ one permanent representative each at its outside Dhaka branch to capture the opportunity of outstation market;  The Lending Procedure that is prepared has to be more simplified and if possible use a specific guideline linked with the Credit Policy Manual;  Security arrangements and documentation has to be performed carefully otherwise the claims on the security arrangements will be valueless;  The manager/officer(s) has to have a clear knowledge on what is going on in the industries for which they have extended the customer facility;  The manager/officer(s) has to have a clear knowledge on how the business is doing in the companies who are the customers of Retail Banking Service.  An independent market survey can be performed in every two years to know about the booming industry/business trend of the country;  Credit Scoring Model should be updated after every one year interval.  Relationship Managers should consult time to time with the bank lawyer about the legal issues,

 Security arrangements can be a little more flexible for the customers having a good track record in the bank and  Security arrangements has to be more flexible for the customers having a good track record in the banking industry of Bangladesh;  RM's has to have a regular contact with its customers;  Interdepartmental conflict should be resolved and communication with other department should be increased.  Regular training facilities for the managers have to be maintained in order to possess a competent management team.  Overall environment into the Bank should have to be in the highest standard to provide better experiences both for client and employee.  For faster lending process, The City Bank Ltd should facilitate online loan application submission and personal credit processing. 

To reduce the share of non-working loan, the management should work on conservative strategies rather than aggressive strategies.

 Finally, the City Bank should create and nurture a strong brand appeal to make market differentiation and acclaim highest clients’ satisfaction. 6.2. CONCLUSION CBL has started its banking activities much earlier comparing to the other banks and due to that it has gained a lot of banking experience which has been proved very worthy for them. But that is a part of their job because our countries economic condition is yet to progress a lot. Time to time they are offering different attractive packages of program for customer like different types of account such as Current Deposit Account, Savings Accounting and Fixed Deposit Account etc from the given charts and tables we can see the various range of their deposits and other offers which remains on changing time to time. They also have adequate planning for compensation in various sectors like-they have a wide range of bonus- branch bonus, sales bonus as the percentage of individual performance etc. They also have some special incentives for specified performance which is really encouraging for the employees. But at the same time they have some drawbacks like- they do focus mainly on financial incentives and benefits and not on non-financial ones. But it is not wise on their part. So they need to consider the non-financial incentives a little bit seriously for the customers as well as for the employees also. They also need to increase the range of attractive offers with the increasing business. Another thing is, according to my perception, they require a much prompt guideline to operate their activities. To summarize the whole situation, we would like to say that, this organization is giving a wonderful service to the people in general and of course for Army person of our country and at the same time they are also trying to educate our people about the world class banking procedures which is, according to my concept, a very worthy step and we should cooperate with them in this matter for our own benefit. The City Bank Ltd to manage the overall

banking activities program and they will definitely progress with the modernization of business environment. 7.2. BIBLIOGRAPHIES 1. ‘Annul Report 2008’, of the City Bank Ltd. 2. Banking Products Brief from: www. thecitybank.com 3. ‘Manual Book 2008’ of the City Bank Ltd. 4. ‘Policy on Early Alert’ by the City Bank Limited