Customer Satisfaction in First Security Islami Bank

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Internship Report On:

Customer Satisfaction of First Security Islami bank(This Internship Report Is Submitted For the Partial Fulfillment Of The Degree of Master

of Business of Administration With A Major In Finance & Banking)

Prepared For

Manjurul Alam MajumderLecture

Department Of finance

Faculty Of Business AdministrationIIUC

Prepared By:Student name: Mohammad Masudul Alam

Metric No. : B101439Program : MBA

Finance & Banking, IIUC.Submission Date : 25-05-2014

Department of Business Administration

Faculty of Business Studies

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INTERNATIONAL ISLAMIC UNIVERSITY CHITTAGONG

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Letter of Transmittal

Date: 25th, May, 2014

To

The Supervisor

Lecturer

Faculty of Business Studies

International Islamic University

Chittagong, Bangladesh

Subject: - Submission of internship report on “Customer satisfaction in FSIBL”

Dear Madam,

With due respect and honor want to state you that I am a regular student of MBA semester (Finance) want to submit the internship report on fulfillment of the MBA degree requirement. The report is based on “Customer satisfaction in FSIBL”. I am grateful to my supervisor for giving me the scope.

I pray and hope that you would be kind enough to accept this report and oblige thereby.

Yours sincerely,

( )

Student name: Mohammad Masudul AlamMetric No. : B101439Program : MBA Finance & Banking, IIUC.Submission Date : 25-05-2014

Chittagong, Bangladesh.

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ACKNOWLEDGMENT

At first all praise and indebtness to the Almighty Allah, the Lord of Glory and Honor and his Friend our Prophet Mohammad (SM), for all the blessing showers upon me to make such a success.

Every creative task to be finished successfully needs shared efforts from individuals and institutions. It is a great pleasure and humble opportunity for me that I am assigned for doing my internship in First Security Islami Bank Ltd. (FSIBL). I express my gratitude to all of them who help me in completing my internship I also acknowledge their help with heartfelt thanks.

I want to convey my heartfelt respect and cordial thanks to my supervisor to give an opportunity to carry out my internship and I also like to thank for his generous cooperation and constant guidance that made me really confident about the desired outcome of my internship project.

I am grateful to the Manager, First Security Islami Bank Limited, Anderkilla Branch for his invaluable support and guidance that led to the successfully completion of my internship project.

My special thanks go to the whole team of FSIBL for their continuous support, inspiration and giving me the opportunity to deal with different suppliers.

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Executive Summary:

Banking system of Bangladesh has gone through three phases of development- Nationalization, Privatization, and Lastly Financial Sector Reform. First Security Islami Bank Limited (FSIBL) first incorporated in Bangladesh as a private commercial bank on on 29 august 1999. The bank is conducting their banking activities in Bangladesh through 46 branches.The objective of FSIBL is to offer Islami shariah based banking activities, to contribute social and economical development, creating employment opportunities, service to their valued customers, provide efficient computerized banking System, enhance foreign exchange operation, accept deposits on profit loss sharing basis, established a welfare orientated banking system.

Mainly operations of FSIBL go under the following heads:

General bankingInvestmentForeign exchange

As a service-oriented organization FSIBL is serving it’s customer through it’s different departments; 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. 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 FISBL transmit L/C through SWIFT (Society for Worldwide Inter bank Financial Telecommunication) to the advising bank.First security Islami Bank Limited is providing different sorts 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 lie traveler’s cheque, money Gram foreign demand draft, endorsement of US dollar in passport.

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Table of Contents

1 Title Page i

2 Cover Page ii3 Letter of Transmittal iii

4 Acknowledgement iv

5 Executive Summary v

1( Title Page)

Chapter One(Introductory Aspects)

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Introduction 1Objectives of the study and scope 2

Methodology 3-4

Limitations of the report 3

Chapter TwoTheoretical aspects 4

Company Details 5-31

Chapter ThreePractical Aspects

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Rules and regulations of financial disclosure 33-62

Chapter FourConclusionary Aspects 63

Findings and analysis 64-69

70Chapter 5 71

RecommendationConclusionReferences

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Chapter: 1Introduction

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Introduction:

Banking system of Bangladesh has gone through three phases of development- Nationalization, Privatization, and Lastly Financial Sector Reform. First Security Islami Bank Limited (FSIBL) first incorporated in Bangladesh as a private commercial bank on on 29 august 1999. The bank is conducting their banking activities in Bangladesh through 46 branches.The objective of FSIBL is to offer Islami shariah based banking activities, to contribute social and economical development, creating employment opportunities, service to their valued customers, provide efficient computerized banking System, enhance foreign exchange operation, accept deposits on profit loss sharing basis, established a welfare orientated banking system.

Mainly operations of FSIBL go under the following heads:

General bankingInvestmentForeign exchange

As a service-oriented organization FSIBL is serving it’s customer through it’s different departments; 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. 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 FISBL transmit L/C through SWIFT (Society for Worldwide Inter bank Financial Telecommunication) to the advising bank.First security Islami Bank Limited is providing different sorts 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 lie traveler’s cheque, money Gram foreign demand draft, endorsement of US dollar in passport.

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As I am directly in touch with customers, the report will deal with the service quality and customer satisfaction of FSIBL Bank Limited. A survey will be conducted on the customers of FSIBL Bank Limited. The objective of this report will be to determine to how well FSIBL Bank Limited is satisfying the customers on different service grounds. Various important issues of customer satisfaction will be presented in light of the findings of the survey.

Lastly the findings will be examined to prescribe a set of specific recommendations to improve the overall service quality according to customers expectations and also to solve the existing problems in the whole organizational level.

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Objectives of the report:

The endeavor of this report is to endow me with valuable practical knowledge about

banking operations and activities and analyze the performance of the FSIBL Bank Ltd.

The objective of the study was to determine the customers’ perception about the service

quality of Customer care department of FSIBL Bank Ltd. It gave the management an idea

about the quality of the service that they are providing and will help them to make

decision to improve that.

Broad Objectives

To know the overall performance of Commercial Bank of First Security Islami

Bank Ltd.

To relate theoretical understanding with practical occurrence in several functions

of the bank.

To exhibit the activities of the Banking Services.

To be acquainted with how bank perform operations and activities as well

as get an overall idea of Service system of the FSIBL Bank Ltd. Ltd.

Specific Objective:

The main object in conducting this research report is to gain practical knowledge apart from institutional teaching and also to acquire knowledge about the existing banking system and practiced banking system in First Security Islami Bank Limited. This study will be looking for the following objectives.

To know about the various aspects of customer services those are provided by FSIBL Bank Ltd.

Too see satisfactory level of customers about Bank’s services. To find out the principles, values, and its strategy of running business. To get and insight into the history and operations of FSIBL Bank Limited.

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To find out the underlying functions, roles and responsibilities of different divisions of FSIBL Bank Limited.

To analyze and evaluate the managerial performance of different divisions. To figure out the responsibilities of a banker’s to the issue and lead bank in light

of FSIBL Bank experiences. To evaluate the market potentiality and competitive situation in the service market

of Banker’s to the issue and lead Bank. Finding out the weaknesses of their service. Making the solutions that can remove those weaknesses.

Methodology

In order to make the report more meaningful and presentable, from two sources data and information have been collected. This are-

Data Collection

a) Primary sources b) Secondary sources

a) Primary sources of data including the following: Face to face conversation with the institutions officers and

staffs Direct conversation with the customer. Practical deskwork.

b) Secondary sources of data including the following:

Annual report of FSIBL Bank Limited Unpublished data from the organization Different publications of FSIBL Bank Limited Website. FSIBL Bank Limited Database

The exploratory survey reached perform with the respondent by door-to-door interview method where respondents go through a questionnaire survey by taking the help of respondents I constructed a very specific questionnaire that prepared with flexibility to make it unbiased and the survey questionnaire structured by both “open -ended” and “close –ended”. In this research a convenience sampling applied and may need

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judgmental sampling application in some condition. This collection information presented in a graphical percentage manner but in standard editing and coding system. For conducting the research, I took100 respondents as sample size.

Limitations of the studyThe study has been conducted to make an investigation of the bank's service oriented

activities; during carrying out the study in this field, some problems may be termed as

limitations of the study:

I got a short period of time to prepare the report

In bank all employees are too busy. It is tough to have a break from their tight

schedule

There are a lot of secret matters in the organization. As an intern the researcher

cannot reach to those secret topics.

Technological aspect: The report does not describe any technological aspect.

In some cases, up to date information were not published.

Lack of proper books, journals and other elements.

Sufficient records, publications facts and figure are not available; these hamper

the scope of real analysis.

Many procedural matters were written from our own observation, which may also

vary from person to person.

In spite of all the limitations I fully prepare the whole report while conducting the

study and making of it. It has managed to end up well. I believe that I have

prepared a quality report on the Customer care division of the system of the

National Bank Ltd.

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Chapter: 2

Theoritical Aspects

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The Banking Sectors of Bangladesh:

Bangladesh bank (BB) has been working as the central bank since the country’s independence. Its prime jobs include issues of currency, maintaining foreign exchange reserve and providing transaction facilities of all public monetary matters. BB is also responsible for planning the Government’s monetary policy and implementing it thereby.

The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized commercial bank (NCBs), 28 local private commercial banks, 12 foreign banks, and the rest five are development financial institutions (DFIs).

Sonali bank is the largest among the NCBs while Pubali is leading in the private once. Among the 12 foreign banks, Standard Chartered has become the largest in the country. Besides the scheduled banks, Samabai (corporative) bank, Ansar- VDP bank, Karmasansthan (employment) bank and Grameen bank are functioning in the financial sector.

Bangladesh bank (BB) regulates and supervises the acitivities of all banks. The BB is now carrying out a reform program to ensure quality services by the banks. The list of banks doing their operation in Bangladesh are-

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Nationalized Commercial Banks (NCBs) Name Telephone 1.Sonali Bank 9550426-34, 86145882. Janata Bank 9560072-80, 9560042-433. Agrani Bank 9566153-54, 9566160-69,

9555179-804. Rupali Bank 9551624-25, 9554122,

9552183-4Private Commercial banks (PBCs)1. Pubali bank 9569050-2, 9551614-72. Uttara Bank 9566067-9, 9551162-63,

95657323. National Bank 9563081-5, 95612014. The City bank Limited 9565925-345. United Commercial Bank Limited. 95605856.Arab Bangladesh bank Limited. 95608878, 9560312-67. IFIC Bank Limited. 9562062, 9563020-298. Islami Bank Bangladesh Ltd. 9552897-8, 9563040,

9563046-99. AL Baraka Bank Bangladesh Ltd. 9563768-9, 9565031-210. Eastern Bank Ltd. 9556371, 9556361-211. National credit and commercial Bank Ltd. 9561902-412. Prime Bank Ltd. 9567265-70, 956467713. South east Bank Ltd. 9550081-5, 9551575,

955771414. Dhaka Bank Ltd. 9556587-10, 955658315. AL- Arafah Islami Bank Ltd. 9559014, 955485516. Social Investment Bank Ltd. 9568537-3917. Dutch-bangla Bank Ltd. 955933318. Mercantile Bank Ltd. 9667224, 966780219. Standard Bank Ltd. 9564249, 7551799, 9564255-

620. One bank Ltd. 9553925, 9553872, 956641821. EXIM Bank Ltd. 9553925, 9553872, 956641822. Bangladesh Commerce Bank Ltd. 9559831-32, 966817023. Mutual trust Bank Ltd. 9569318, 711323924. First Security Bank Ltd. 9560229, 956473325. The Premier Bank Ltd.26. Bank Asia Ltd. 8117055, 811706627. The Trust Bank Ltd. 9870011 extn- 419128. Shah Jalal Bank Ltd. ( Based on Islamic Shariah) 9556011

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Foreign banks

1. American Express Bank 9561751-52, 9561496-972. Standard Chartered grindlays bank 9561465, 9550181-903. habib bank ltd. 9551228, 9555091-24. State Bank of India 9554251, 95533715. National Bnak Of Pakistan 81119596. Muslim Commercial Banl Ltd. 9560248-97. City Bank NA 9563649, 95636508. Hanvit Bank Ltd. 9550063-649. HSBC Ltd.10. Credit Agricole Indosuez ( the Bank) 8813270-7311. Shamil Islami bank Of Baharain EC 966701-512 Standard Chartered Bank 9561465, 881718-9Development Banks

1. Bangladesh Krishi Bank 9560021-5, 9560031-352. Rajshahi Krishi Unnayan Bank 955150-9, 95661143. Bangladesh Shilpa Bank 9565818, 95650464. Bangladesh Shilpa Rin Shangstha5. Bank of Small Industries and Commerce Bangladesh Ltd.

9564830, 9658190

Others

1. Ansar VDP Unnayan Bank 8313198, 83221812. Bangladesh Shamabai Bank Ltd. (BSBL)3. Grameen Bank 8015755-84. Karmashangsthan Bank 9563311

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Customer satisfaction is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals." In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses.

"Within organizations, customer satisfaction ratings can have powerful effects. They focus employees on the importance of fulfilling customers’ expectations. Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. . . . These metrics quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both free and highly effective."

Purpose

"Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty.” Customer satisfaction data are among the most frequently collected indicators of market perceptions. Their principal use is twofold:" 

1. "Within organizations, the collection, analysis and dissemination of these data send a message about the importance of tending to customers and ensuring that they have a positive experience with the company’s goods and services."

2. "Although sales or market share can indicate how well a firm is performing currently, satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will make further purchases in the future. Much research has focused on the relationship between customer satisfaction and retention. Studies indicate that the ramifications of satisfaction are most strongly realized at the extremes." On a five-point scale, "individuals who rate their satisfaction level as '5' are likely to become return customers and might even evangelize for the firm. (A second important metric related to satisfaction is willingness to recommend. This metric is defined as "The percentage of surveyed customers who indicate that they would recommend a brand to friends." When a customer is satisfied with a product, he or she might recommend it to friends, relatives and colleagues. This can be a powerful marketing advantage.) "Individuals who rate their satisfaction level as '1,' by contrast, are unlikely to return. Further, they can hurt the firm by making negative comments about it to prospective customers. Willingness to recommend is a key metric relating to customer satisfaction.

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A business ideally is continually seeking feedback to improve customer satisfaction

Customer Satisfaction & Loyalty  

Customer satisfaction and loyalty are critical elements of long-term business growth and profitability. For mature segments of the imaging and document technology industries, customer satisfaction is particularly important because of limited new growth prospects. Nevertheless, higher customer satisfaction and loyalty can have a much broader impact on your business by enabling you to:

Achieve lower costs of selling Increase repeat purchases from existing customers Improve brand equity or price premium Increase retention rates for supplies sales Enable faster roll out and ramp up of new products and services Leverage satisfaction rates in marketing messages to attract new customers Create a pool of referrals for capturing new accounts Improve employee productivity, satisfaction, and retention

In many cases customer satisfaction and loyalty are not simply based on how well your product performs. Customers tend to have a more holistic view of their experience and what satisfies them. As part of our customer satisfaction research, InfoTrends can work with you to identify the key components driving customer loyalty, including:

Identifying what the customer values Examining critical touch points with the customer Understanding the impact of your channel on customer satisfaction Examining the impact of billing and administrative issues on satisfaction

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Identifying specific sources and causes for low customer satisfaction Quantifying the business impact from improving customer satisfaction Benchmarking your customer satisfaction vs. competitors Assessing the differences in customer satisfaction by market segment Examining the relationship between business processes and customer satisfaction

InfoTrends specializes in working with document and imaging technology vendors to assess customer satisfaction and loyalty. We can help you develop systematic changes that will lead to improvements in customer satisfaction and loyalty. More importantly, we can help you prioritize your initiatives, measure their impact, and provide objective feedback on your progress.

Objectives of a customer satisfaction surveying program

 In addition to a clear statement defining customer satisfaction, any successful surveying program must have a clear set of objectives that, once met, will lead to improved performance. The most basic objectives that should be met by any surveying program include the following:

 Understanding the expectations and requirements of all your customers

 Determining how well your company and its competitors are satisfying these expectations and requirements

 Developing service and/or product standards based on your findings

 Examining trends over time in order to take action on a timely basis

 Establishing priorities and standards to judge how well you've met these goals

 Before an appropriate customer satisfaction surveying program can be designed, the following basic questions must be clearly answered:

 How will the information we gather be used?

 How will this information allow us to take action inside the organization?

 How should we use this information to keep our customers and find new ones?

 Careful consideration must be given to what the organization hopes to accomplish, how the results will be disseminated to various parts of the organization and how the information will be used. There is no point asking

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customers about a particular service or product if it won't or can't be changed regardless of the feedback.

 Conducting a customer satisfaction surveying program is a burden on the organization and its customers in terms of time and resources. There is no point in engaging in this work unless it has been thoughtfully designed so that only relevant and important information is gathered. This information must allow the organization to take direct action. Nothing is more frustrating than having information that indicates a problem exists but fails to isolate the specific cause. Having the purchasing department of a manufacturing firm rate the sales and service it received on its last order on a scale of 1 (terrible) to 7 (magnificent) would yield little about how to improve sales and service to the manufacturer.

Customer Satisfaction Measurement Facts

A 5-percent increase in loyalty can increase profits by 25%-85%.

A very satisfied customer is nearly six times more likely to be loyal and to repurchase and/or recommend your product than is a customer who is just satisfied.

Only 4 percent of dissatisfied customers will complain.

The average customer with a problem eventually tells nine other people.

Satisfied customers tell five other people about their good treatment.

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Chapter: 3

Practical Aspects

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First Security Islami Bank Ltd. (FSIBL) is a financial institution operating based on

the principles of Islamic Shariah. FSIBL was incorporated in Bangladesh on 29

August 1999 as a banking company under Companies Act 1994 to carry on

banking business. It obtained permission from Bangladesh Bank on 22 September

1999 to commence its business.

First Security Islami Bank Ltd. provides all kinds of commercial banking services to

its customers through its branches in Bangladesh. The Bank carries banking

activities through its 92 branches in the country. The commercial banking activities

of the bank encompass a range of services, including accepting deposits, making

loans, discounting bills, conducting money transfer and foreign exchange

transactions, and performing other related services, such as safe keeping,

collections and issuing guarantees, acceptances and letter of credit. The Bank’s

product and services include deposit scheme, investment scheme, online banking,

short message service (SMS) banking, automated teller machine (ATM) banking,

utility bills and locker services. As of December 31, 2010, FSIBL held 51% interest

in First Security Islami Capital & Investment Ltd. First Security Islami Exchange

Ltd. Is a wholly owned subsidiary of the Bank.

Vision:To be the premier financial institution in the country providing high quality products and services backed by latest technology and a team of highly motivated personnel to deliver excellence in Banking.Mission:

To contribute the socio-economical development of the country.

To attain highest level of satisfaction through extension of services by dedicated and motivated professional.

To maintains continuous growth of market share ensuring quality.

To ensure ethics and transparency in all levels.

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To ensure sustainable growth and establish full value of the honorable shareholders and

Above all, to add effective contribution to the national economy.

Corporate Slogans:“Green In Living”

Products & Services:

First Security Islami Bank has two type of product.

Deposit Schemes

Investment Schemes

FSIBL also provide some services.

Online Banking

SMS Banking

ATM Banking

Utility Bills

Locker Services etc.

Product under Deposit Schemes: Al-Wadiah Current Deposit

Mudarabah Savings Deposit

Mudarabah Short Term Deposit

Mudarabah Term Deposit

o One Month

o Three Months

o Six Months

o Twelve Months

o Twenty Four Months

o Thirty Six Months

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Foreign Currency Deposit

Mudarabah Savings Scheme

o Monthly Savings Scheme

o Monthly Profit Scheme

o More than Double the deposit in 6 years

Consumer Finance Scheme

To Diversify portfolio in both retail & wholesale markets

Products under Investment Scheme: Investment /Deployment of Funds

o Bai-Murabaha (Deferred Lump Sum /Installment Sale)

o Bai-Muajjal (Deferred Installment /Lump Sum Sale)

o Ijara (Leasing)

o Musharaka (Joint-Venture Profit-Sharing)

o Mudaraba (Trustee Profit-Sharing)

o Bai-Salam (Advance Sale & Purchase)

o Hire-Purchase

o Direct Investments

o Post Import Investment

o Purchase & Negotiation of Export Bills

o Inland Bills Purchased

o Murabaha Import Bills

o Bai-Muajjal Import Bills

o Pre Shipment Investment

o Quard-ul-Hasan (Benevolent Investment)

Letter of Guarantee

o Tender Guarantee

o Performance Guarantee

o Guarantee for Sub-Contracts

o Shipping guarantee

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o Advance Payment guarantee

o Guarantee in lieu of Security Deposit

o Guarantee for exemption of Customs Duties

o Others

Letter of Credit (L/C) / Back to Back Letter of Credit (L/C)

Specialized Schemes

o Consumer Investment Scheme

o SME Investment Scheme

o Lease Investment Scheme

o Hire Purchase

o Earnest Money Investment Scheme

o Mortgage Investment

o Employees House Building Scheme

o ATM, VISA Investment Card, EEF, etc.

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Association/Trust/Society:1. Request letter. 2. Photograph of signatories attested by introducer. 3. Copy of Resolution of governing body to open the account and authorization for operation. 4. Copy of consolation / bylaws/ rules. 5. Certificate of registration. 6. List of authorized signatories and members of the governing bodies along with address. 7. Trust Deed (for Trust account only). Cheque Book Issues Types of Cheque Book’s: ▫ Savings Account – 10 Leaves ▫ Current Deposit Account – 10 Leaves ▫ Current Deposit Account – 25 Leaves (CDTF)Cheque Issuing is Two Types:

Customers Service Officer receives these types of slip from the client’s and gives the cheque books under processing. Processing means Cheque Book’s collect from the VOLT and the put account number in the cheque book, write down the serial number of the cheque book in the requisition slip and cheque book register, then Verified client signature. After all this things the Principal officer sign in the cheque leaves and sent the cheque book to another Principal officer for sign, after his sign the client receive the cheque book. These things the Principal Officer for sign, after his sign the client receive the cheque book. Then Principal Officer posting that cheque books leaves number in the computer data processing system.A cover file containing the requisition slip is effectively preserved as vouchers. If any defect is noticed by the ledger keeper, he makes a remark to that effect on the requisition slip and forward it to the cancellation officer to decide whether a new cheque book to be issued to the customer or not. Account Closing:

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For two reasons, one can be closed. One is by banker and other is by the customer.By banker: If any customer doesn’t maintain any transaction within six years and the A/C balance becomes lower than the minimum balance, banker has the right to close an A/C.By customer: If the customer wants to close his A/C, he writes an application to the manager urging him to close his A/C.Closing process for current & savings A/CAfter receiving customer’s application the officer verifies the balance of the A/C. He then calculates interest and other charges accumulated on the A/C. If it bears a credit balance, the officer writes advice voucher. He gives necessary accounting entries post to accounts section. The balance is returned to the customer. And lastly the A/C is closed.But in practice, normally the customers don’t close A/C willingly. At times, customers don’t maintain any transaction for long time. Is this situation at first, the A/C becomes dormant and ultimately it is closed by the bank.Remittance:Remittance of funds is ancillary services of FSIBL. It aids to remit fund from one place to another place on behalf of its customers as well as non- customers of Bank. FSIBL has its branches in the major cities of the country and therefore, it serves as one of the best mediums for remittance of funds from one place to another. The main instruments used by FSIBL, Dilkusha Branch for remittance of funds.▫ Payment Order Issue/Collection▫ Demand Draft Issue/Collection▫ T.T. Issue/Collection▫ Travellers Cheque Issuance▫ IBC / OBC Collection.Investment Division:Investment operation is the vital operation, which earn greater share of total revenue. Well planned and appropriate investment policy frame work is a pre-requisite for achieving the goal of the Bank i.e. implementation.

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The special feature of the investment policy of the Bank is to invest on the basis of profit- loss sharing system in accordance with the tenets and principles of Islamic Shariah.

 Functions of Investment Division:The main functions of this division are:a).  Bai (Buying and Selling) Modes :

Bai – murabaha. Bai – mujjal. Bai – salam

b).  Share Modes Mudaraba Musharaka

c).Ijara Modes Hire Purchase Hire purcahase under Shirkatul malek.

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Foreign Exchange Division:

Foreign Exchange means exchange foreign currency between two countries. If we

consider ‘Foreign Exchange’ as a subject, then it means all kind of transactions related to

foreign currency. In other wards foreign exchange deals with foreign financial

transactions.

Sub Division of Foreign Exchange:

There are three kinds of foreign exchange transactions: Import. Export. Remittance. 

Meaning of Foreign Exchange:

Foreign Exchange means currency & trade exchange say conversion of one to another.

This is a part of economic & Science. This is a big deal divided into different currencies

instrument such as Draft, Traveler Cheque, Bill of Exchange business including sell,

purchasing of currency notes & TC etc. Currency Exchange means the conversion of one

Currency in to another. The foreign exchange activities of FSBL are divided into three

parts: The bank has established correspondent relationship with over 220 foreign

correspondents all over the world viz. The Hong Kong and Shanghai Banking Corporation

Ltd., USA Mashreq Bank Psc, UAE, Union De Banque Arabes Et Francaises, Franch and

ICIC bank, and India to cater to the needs of the bank’s customers engaged in

international trade. Our bank is maintaining adequate number of Nostro accounts in

important currencies of the world to facilitate payments and transfer of funds. The Bank is

providing excellent services to the clientele in foreign exchange and foreign trade

operations through the above foreign correspondents. Foreign exchange is mainly

combination of three parts. Those are given below:1. Import2. Export3. Remittance

These three parts are most essential parts of Foreign Exchange Operations of FSIBL at

Dilkusha branch. Not only FSIBL but also all banks of Bangladesh have maintained these

rules for foreign exchange operations.

Foreign Exchange Market:

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Foreign Exchange market means the process where foreign currency is bought & sold. In

this more that supply, currency value. Ultimately following are the features of foreign

exchange market. Bank & client. Different Banks in the come foreign exchange market. Different Bank & Schedule Bank of the same country. Different Control Bank.

First Security Islami Bank Ltd. (FSIBL) is a Bank that follows the following two craters in

respect & payment of foreign exchange. Local currency market value & Foreign currency market value.

 Types of Financial Institution:

Source: Reading materials for Foreign Exchange and Financial in            

International Trade.

 Foreign Exchange Market Operation:

Foreign exchange dealers in each bank usually operate from one room; each dealer has

several telephones and is surrounded by video screen and news taps. Only the head or

regional offices of the larger banks actively deal in foreign exchange. Foreign exchange

brokers may be used as middlemen to find a taker or takers foe the deal. Brokers do not

trade on their own account but specialize in setting up large foreign exchange transaction

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in return for a commission. Most small banks and local offices of major banks do not deal

directly in the inter bank foreign exchange market.

 Structure of Foreign Exchange Markets:

 How Foreign Exchange is Being Controlled:

Foreign Exchange is being controlled by the following ways: To stabilize the rate of exchange To protect domestic industries For proper implementation of plans To increase the bargaining strength To check over invoicing & Under invoicing To check the Blank marketing and smuggling For regulating the international movements of goods

 Authorized Dealer Branch:

Bangladesh Bank in exercise of the power under section 3 of Foreign Exchange

regulation Act. 1947 issues a license to schedule bank where they have adequate trained

officer/staff to deal in Foreign Exchange. The banks that are authorized dealers.

Arbitrage of Foreign Exchange:

Arbitrage can be defined as simultaneous buying and selling of foreign currencies for the

purposes of making profit Arbitrage is carried out mostly by banks, they keep constant

watch over the latest development in the financial market of the world.

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Foreign Exchange Regulation Items:

Foreign exchange regulations items are given below: Bangladesh Bank Manual Foreign Exchange Circular Public notice Import and export policy gazette Ministry of commerce circular Guise line for foreign exchange regulation

Foreign Exchange Business of FSIBL:

1.Import: The Bank’s foreign exchange business relating to import was tk.6605.40 million

at the ends of December 2005.

2. Export: Bank’s foreign exchange business relating to export was tk.2856.40 million at

the ends of December 2005.

3.Inward Remittance: During 2005the Bank handled inward remittance from

Bangladeshi workers abroad to the tune of tk.62.21 million against 32.692 million in 2004.

Functions of Foreign Exchange of FSIBL:

The Bank actions as a media for the system of foreign exchange policy. For this reason,

the employee who is related of the bank to foreign exchange, especially foreign business

should have knowledge of these following functions:

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Method of Effecting Payment  of FSIBL:

First Security Islami Bank Ltd. follows the following method to make payment between

countries:

1. Telegraphic Transfer (TT):

This is an instruction for transfer of money by   telegram, cable or telex from bank in one

country to another bank in different center. This is an instruction from the importers bank

to the exporter’s bank. The TT is realized by us   from the party as per bank circular.

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2. Mail Transfer:

 This transfer is the order to pay cash to 3rd party. This transfer is sent by mail and the

charge must be realized ad per bank circular.

3. Drafts and Cheque:

A Draft is order issued by one bank to another bank or its branch.

Letter of credit Meaning:

Letter of credit (L/C) can be defined as a “Credit Contract” whereby the buyer’s bank is

committed (on behalf of the buyer) to place an agreed amount of money at the seller’s

disposal under some agreed conditions. Since the agreed conditions include, amongst

other things, the presentation of some specified documents, the letter of credit is called

Documentary Letter of Credit. The Uniform Customs & Practices for Documentary Credit

(UCPDC) published by international Chamber of Commerce (1993) Revision Publication

No. 500 defines Documentary Credit:

Any arrangement however named or described whereby a bank (the “issuing bank”)

acting at the request and on the instructions of a customer (the “Applicant”) or on its own

behalf1. Is to make a payment  or to the order of a third party(the beneficiary) or is to accept

and pay bills of exchange(Drafts)drawn by the beneficiary, or2. Authorizes another bank to effect such payment or to accept and pay such bills of

exchange (Drafts)3. Authorizes another bank to negotiate against stipulated documents provide that terms

and conditions are complied with.

 Types of Documentary Credit:

Documentary Credits may be either:

(a)    Revocable credit.

(b)    Irrevocable credit.

(a) Revocable credit:

 A revocable credit is a credit that can be amended or cancelled by the issuing bank at

any time without prior notice to the seller.

In case of seller (beneficiary), revocable credit involves risk, as the credit may be

amended or cancelled while the goods are in transit and before the documents are

presented, or although presented before payments has been made. The seller would then

face the problem of obtaining payment on the other hand revocable credit gives the buyer

maximum flexibility, as it can be amended or cancelled without prior notice to the seller up

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to the moment of payment buy the issuing bank at which the issuing bank has made the

credit available. In the modern banking the use of revocable credit is not widespread.

(b) Irrevocable credit

 An irrevocable credit constitutes a definite undertaking of the issuing bank (since it can

not be amended or cancelled without the agreement of all parties thereto), provided that

the stipulated documents are presented and the seller satisfies the terms and conditions.

This sort of credit is always preferred to revocable letter of credit.

 Parties To a letter of Credit:

The parties are: The Issuing Bank, The Confirming Bank, if any, and The Beneficiary.

Other parties that facilitate the Documentary Credit are: The Applicant, The Advising Bank, The Nominated Paying/ Accepting Bank, and The Transferring Bank, if any1. Importer – Seller who applies for opening the L/C.2.    Issuing Bank – It is the bank which opens/issues a L/C on behalf of the importer.3.   Advising / Notifying Bank – is the bank through which the L/C is advised to the

exporters. This bank is actually situated in exporters country. It may also assume the role of confirming and / or negotiating bank depending upon the condition of the credit.

4.  Negotiating Bank – is the bank, which negotiates the bill and pays the amount of the beneficiary. The advising bank and the negotiating bank may or may not be the same. Sometimes it can also be confirming bank.

5.   Paying / Accepting Bank – is the bank on which the bill will be drawn (as per condition of the credit). Usually it is the issuing bank.

6. Reimbursing bank – is the bank, which would reimburse the negotiating bank after getting payment – instructions from issuing bank.

First Security Islami Bank certify the CIB (credit information bureau) and all agreements

are made before opening L/C as a result its goods are not sold again raising the products

price or reducing the product price. It sis the single deal system, Because FSIBL deal’s

with the business of selling any buying, not loaning.

Some Important Documents of L/C

(a) Forwarding:

 Forwarding is the letter given by the advising bank to the issuing bank. Several copies

are sent to the issuing bank. All copies including original should be kept in the bank.

(b) Bill of Exchange:

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According to the section 05, Negotiable Instruments (NI) Act-1881, A “bill of exchange” is

an instrument in writing containing an unconditional order signed by the maker, directing

a certain person to pay [on demand or at fixed or determinable future time] a certain sum

of money only to or to the order of a certain person or to the bearer of the instrument. It

may be either at sight or certain day sight. At sight means making payment whenever

documents will reach in the issuing bank.

(c) Invoice:

 Invoice is the price list along with quantities. Several copies of invoice are given. Two

copies should be given to the client and the other copies should be kept in the bank. If

there is only one copy, then its photocopy should be kept in the bank and the original

copy should be given to the client. If any original invoice contains the custom’s seal, then

it cannot be given to the client.

(d) Packing List:

 Packing list is the letter describing the number of packets and there size. If there are

several copies, then two copies should be given to the client and the remaining should be

kept in the bank.  But if there is only one copy, then the photocopy should be kept in the

bank and the original copy should be given to the client.

(e) Bill of Lading:

 Bill of Lading is the bill given by shipping company to the client. Only one copy of Bill of

Lading should be given to the client and the remaining copy should be kept in the bank.

(f) Certificate of Origin:

 Certificate of origin is a document describing the producing country of the goods. One

copy of the certificate of origin should be given to the client and the remaining copy

should be kept in the bank. But if there is only one copy, then the photocopy should be

kept in the bank and the original should be given to the client.

(g) Shipment Advice:

 The copy mentioning the name of the insurance company should be given to the client

and the remaining copies should be kept in the bank. But if only one copy is given, then

the photocopy should be kept in the bank and the original copy should be given to the

bank.

Form – IMP:

This form is prepared for maintaining account of the money, which goes out side the

country for the purpose of payment. This form is required by Bangladesh Bank. It is an

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application for permission under 4/5 of the Foreign Exchange Regulation Act, 1947 to

purchase foreign currency for the payment of import.

Copies of IMP – Form:

IMP – FORM has four copies:1. Original copy for Bangladesh Bank.2. Duplicate copy for authorized dealers. It is issued for processing Exchange Control

Copy of bill of entry or certified invoice.3. Triplicate copy for authorized dealers’ record.4. Quadruplicate copy for submission to the bank in case of imports where documents

are retired.

Following documents are sent with FORM-IMP: Letter of Credit Authorization Form, One copy of invoice, Indent copy / proforma invoice.

The following information is included in the FORM-IMP: Name and address of the authorized dealer, Amount of foreign currency in words and figures, Names and address of the beneficiary, L/C Authorization Form number and date, Registration number of L/C Authorization Form with Bangladesh Bank, and Description of the goods.

6.1 Meaning of ImportImport means lawfully carrying out of anything from one country to another country for buying. It will be occurred according to the government law. First Security Islami Bank Ltd.(FSIBL)’s foreign exchange business relating to import was Tk.6605.40 million at the ends of December 2005.Ther are different years import happened by FSIBL at Anderkilla are given bellow:

Year Total L/C Amount in US $ Exchange Rate Amount in BDT

2006 474 $5,744,019.22 73.80 423,944,000.56

2008 500 $37,742,857.14 70.00 2,642,000,000.00

There are Three types of import. They are given below: Commercial import Industrial import Import under wage

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6.3 Import Mechanism:

To import, a person should be competent to be an ‘importer’. According to Import and

Export (Control) Act, 1950, the officer of Chief Controller of Import and Export provides

the registration (IRC) to the importer. After obtaining this, the person has to secure a

letter of credit authorization (LCA) from Bangladesh Bank. And then a person becomes a

qualified importer. He requests or instructs the opening bank to open an L/C.

Import procedure of FSIBL

An importer is required to have the following to import through PBL— Applicant has to apply for opening L/C by a prescribed form. Applicant has to submit the Letter of Indent or Letter of Proforma Invoice.

Letter of Indent:

Many sellers have their agent in seller’s country. If the contract of buying is made

between the buyers and the agent of the sellers then Letter of Indent is required.

Letter of Proforma Invoice:

If the contract is made directly between the buyers and the sellers then     Letter of

Proforma Invoice is needed. Applicant has to submit IRC (Indentors Registration Certificate). It is a certificate being

renewed every year. This certificate is necessary if the contract is made between the buyers and the agents of the sellers. IRC is of two types – COM and IND. COM is given for commerce purpose and IND is given for industrial purpose.

Applicant has to submit LCAF (Letter of Credit Authorization Form). Applicant has to submit insurance document. Applicant has to prepare FORM-IMP. Recently, there has been made a provision to give a certificate named TIN (Tax

Payers Identification Number). Taxation department issues this certificate. Then after proper scrutiny bank will open an L/C.

While opening L/C, importer must keep certain percentage of the document value in the

bank as margin

Restriction regarding source of procurement of goods:

Goods from South Africa and Israel or goods orienting from these two countries shall not

be importable goods shall not be importable in the flag vessel of those two countries.

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Import at Competitive Rate:

 Import shall be made at the most competitive rate and the importers may be required, at

any time, to submit documents regarding the price paid or to be paid by them. This order

shall be exempted up to TK.1.00 lac for opening L/C.

Pre-shipment Inspection:

 Unless otherwise specified per-shipment inspection of imported goods shall not be

obligatory in case of import by the private sector importers.

Import on CER basis:

 All imports by sea air and land route shall be made on cost and freight basis, Import on

free on board basis may be made strictly observing Bangladesh Bank’s circular, before

opening L/C necessary insurance cover note should have to be purchased form the

insure co. no import shall be allowed on CIF basis without prior approval from the ministry

of commerce.

6.6Import Authorization

Import License not required: No import license will be necessary import of any item.

Import against LCA form: Unless otherwise specified no import irrespective of the

source of finance, shall be allowed exchange through submission LCA form, duly filled in,

to the concerned nominated Bank.

Import against LCA form but without opening: Import against LCA form may be

allowed without opening of letter of credit in the e following cases: Import of books, Journals, Magazines and periodicals on sight draft or essentials bill

basis. Import of any permissible item for an amount not exceeding US$ 2500/-only during

calendar year against remittance made from Bangladesh at WES rate.

Deferred Payment:

 L/C may be open under deferred payment basis:

Direct Payment in Abroad: Only for Bangladeshi National who live in abroad for service.

Those who are entitled to purchases the importable goods for direct payment to the

beneficiary from his own service without opening any L/C, The goods must be sent to the

Bangladesh.

Time limit opening L/C: Letter of credit shall be opened by all importers within 120 days

from the sate of registration of LCAF with the Bangladesh Bank unless otherwise notified.

Document required to be submitted along with LCA from: L/C application form duly signed by the importer.

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Indent for goods issued by indenture or pro-forma invoice obtained from the foreign supplier, as the case may be end

Insurance cover note.

 Import L/C (Letter of Credit):

A letter of credit is a conditional bank undertaking of payment. In other orders letters of

credit is a letter form the importer Bankers to the exporter that the bills if drawn as per

terms and conditions complied with will be honored on presentation.

Classification of L/C:1. 1.      Revocable L/C2. 2.      Irrevocable L/C3. 3.      Transferable L/C4. 4.      Revolving L/C5. 5.      Red clause L/C6. 6.      Green clause L/C7. 7.      Back to Back L/C

Documents submitted by the importer before opening of the L/C: Trade license (Valid) Import registration Certificate (Must kept in the bank custody ) Passbook import Income tax declaration Membership certificate Memorandum of articles (in case of Ltd. Co.) Register deed (in case of partnership firm)

Bank will supply the following papers /document before opening L/C L/C application from IMP from Charge documents paper

The above paper must be completed dully filled and signed by the party and verified

signature.

L/C application and procedure for opening L/C:

For opening L/C the client is to submit to the bank an application in the printed format of

the designed bank. This is called L/C application form, which is also an agreement

between the import and the bank. The form is to be stamped under stamp act.  I n force in

Bangladesh, The importer must be submit the L/C and IMP and indent or contract.

Purchase order/ pro-forma invoice along with L/C application must be completed in and

signed by the authorized person of the importer giving the following particulars:

Full name and address of the supplier of beneficiary and importer

 Brief description of the goods

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  L/C value for US$ etc which must not exceed the ALCA value

  The unit price quantity, quality of the goods

  Origin of the goods, port of loading and port of destination  must be mentioned

Model of shipment (Sea Air, Road etc.)

List date of shipment and negotiation time

 Tenor of draft

  Mode of advising L/C

  Instrument to add confirmation if required.

  LCA number

Examination of L/C application:

On receipt of L/C application it must be checked by an officer of L/C section very carefully

in the following manner:

That all the information mentioned in above column has been furnished.

That the terms to be imported are eligible according to importers entitlement

 Thee goods are not being imported or originated from Sou8th Africa or Israel

  That all the cutting /permit etc are endorsed

 That the validity of the L/C must not exceed the validity of LCA.

 L/C ids opened within the validity period permitted in the license

Retirement procedure for Deferred payment of issuance Bills:

When the draft is returned by the draw (importer) after duly accepted by him the following

procedure to be maintained, The maturity date is to be worked out and noted in the bill register and also in due date

diary. The due date dairy may be maintained by the dealing officer and the manager in charge of foreign exchange department.

The foreign corresponding should be advised the due date maturity and the authorized to debit the NOSTRO account or to claim reimbursement on due date as per L/C terms.

All the documents delivered to the importer except accepted bill of exchange or draft.

 Charges for L/C opening:

L/C commission:

L/C commission 50% within 90 days , first quarter and subsequently increase 30% and

upon on 15% vat.

FCE-(Foreign Correspondent Charge):

Below $25 up to $2500, If applicant want to bear the application charge then addition $75

will be charged.

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Telex per telex 300 taka .But if amendment is consider then per amendment 500 taka and

of courier telex ,then it will be 1500  taka1. Handing charge tk200 fixed.2. Stamp charge-per L/C 360 taka

L/C margin- that means cash security ordered by Bangladesh Bank for industrial items it

is liberal and for luxuries items it is highly cost.

 Essential things contain of L/C form:               L/C Number Shipping Period Importer name and address IRC (Import Registration Certificate) Years of renewal L/C value Source of financing Description of goods HSC (Harmonious system code.)

 Processing and opening of Back to Back L/C procedure:

An exporter serious to have an Import L/C limit under back to back arrangement. Must

have applied to the designed bank in prescribed forms for sanction for opening of back to

back L/C. In that case the following information is to be furnished by the applicant:1. Full particulars of bank account2. Types of business (Proprietorship, Partnership, Ltd .co.) In case of Ltd. Co. Balance

sheet of last 3 years and the name of directors.3. Historical Background4. Amount of limit required5. Goods to be imported Security to be offered6. Repayment schedule and source of fund7. Other liabilities of the customer with the bank8. Statement of assets and liabilities9. Trade license10. Valid bonded warehouse license11. Membership certificate

 Other Documents  Necessary For Import: L/C Terms Draft Invoice

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Recording in the Register

Meaning of Export:

Export means lawful carrying out of  anything from one country  to another country for

sale Export business handled by the FSIBL during 2003 stood at 2807 million, showing a

growth Of  41.17 percent from TK. 1988.4 million  during 2002. In 2005 witch exports are

happened By  FSIBL at Dilkusha branch, those are given below:

To become an exporter an ERC (exporter Registration Certificate) must be obedient from the office of CCI & E.

Month                       Amount in us $                Amount in BD TAKA

January                      174,444.73                                    10989828.99 February                     382,336.70                                    

23322538.7 March                         323,079.95                                   20289420.86 April                         

454,725,57                                      28556765.8 May                            313,854.53                                   19725757.21

June                            481,126.14                                   30298160.39 July                             424,438.77                                  

27694630.12 August                                                                               24550757.9 TOTAL                    

$2,930,837.74                           185,427,859.97

Table: Export performance from jan’2011 to aug’2011 at Abderkilla branch Branch

 Definition of Exporter:

The importers and exporters trade of the country is regulated by the importers Exporters

control act 1950. No person / firm is allowed to export any thing from Bangladesh unless

he is registered with CCI and E under the registration order (Importer and Exporter) 1952.

To become an exporter an ERC (exporter Registration Certificate) must be obedient from

the office of CCI & E.

 Procedure for Maintaining Export Registration Certificate (ERC):

For obedient Export Registration Certificate (ERC), intending Bangladesh Exporters are

required to apply to the CCI & E authority in the prescribed from along with the following

documents: Nationality Certificate Copy of valid Trade License Income Tax Certificate Bank certificate Copy of rent receipt of the business firm Registered partnership deep in case of partnership concerns Memorandum of articles & association and incorporation certificate in

45

On satisfaction of the CCI & E the potential exporter is advised to deposit export

registration fee of TK.1, 000 /- through treasure chalan to Bangladesh bank / sonali bank

for enabling them to issue ERC. The ERC may be renewed every year on payment of

renewal fee of TK.1, 000/- through treasury chalan as started.

 Different Types of Export:

There are three types of export. Those are given below: Export under L/C Consignment basis export Export against advancement payment

Export under L/C:

Exporters are allowed to export the commodity under irrevocable letter of credit. Under

this type of export, exporter will ship the goods as pr terms of the credit and will get

payment as per arrangement as arrangement of the credit.

Consignment basis export:

 Exports are allowed against firm contract. As per contract, importer will ship the goods

and the buyer will make payment after selling the consignment.

Export against advancement payment:

Sometimes exporter receives payment in advanced. In that case Authorized dealer

should obtain a declaration from the exporter on the

 General Rules for Export:

There are rules, which are mandatory for export of any goods form Bangladesh. The rules

are under:1. No person can export any goods from Bangladesh unless he is duly registered as an

exporter with the CCI & E.2. All export must be declared on the on the EXP form, which is consisting of 4 copies.3. Export much is against   any of the following:

                       a. Export L/C.

                       b. Firm Contract

                       c. Advance Payment.1. Transport documents related to land route or sea and any other Authorized Dealer.

The Airway Bill And Any Other documents of title to car 4 go may be drawn to the order of a bank in the country of import. However in case of advance payment transport document may be drawn to the order of Foreign Import Bank endorsement of transport documents is prohibited Directions under SI. No shall not apply in the following cases;

2. Export of Trade sample3. Personal Effects.4. Goods Shipped under the order of Govt .

46

5. Export of fresh fish vegetable and fruits.6. Gift package for less than Tk.50/-7. EXP” must be submitted to the Bank by the exported and Bank will submit the

Duplicate Copy to the Bangladesh Bank within 14 days from the date of shipment.8. Payment for goods exported should be received through an authorized dealer in freely

convertible currency.9. Export proceeds must be received by the export within 4 months.10. Overdue export bills statement to Bangladesh Bank should be submitted by the 15 th of

the month following quarter to which it relates.1. In case of short shipment exporter should give a notice of short shipment of/n the

prescribed from in duplicate the prescribed from in duplicate the customs who will forward a Certified copy of the notice to the Bangladesh Bank.

Stages & Mechanism of Export:

There are some stages and mechanism of export. Those are given bellow: Exporter will make the goods ready for shipment. Arrangements have to be taken for inspection of goods by the competent authority as

per credit terms. Exporter will declare on EXP form against export L/C firm contract /advance payment. Exporters have to arrange approval for export from custom authority on EXP from by

submitting export L/C, export permission from CCI & E. After completion of custom formalities, shipping company will receive the goods and

will issue B.L.

Export Document Checking:

After submission of export document by the exporter, FSIBL must check, whether the     

entire required document submitted or not. FSIBL must examine all document stipulated 

in the credit with reasonable care to ascertain or not they appear, on their face to be in

compliance with the term and condition of the credit .Document not stipulated in the credit

will not be examined by the FSIBL. To examine document FSIBL must follow the L.C term

and international Banking practice.  Some Common discrepancies in export document:1. Late presentation2. Part shipmen effected3. Consignee/Notify party differs4. F. CR presented instead of B/L5. B/L shows “freight collect “instead freight prepaid6. B/L is clause7. Description of goods differs8. Unit price differs9. Per shipment inspection certificate absent10. Late shipment

 Export Financing:

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To meet up the cost of goods to be exported, the exporter may require Bank finance.

Besides, he may require finance for go down rent, freight etc. Even after shipment of the

goods, exporter may require Bank finance to meet-up his expenditure up o repatriation of

the export proceeds. There are two type of export finance: Pre-shipment finance Post -shipment finance

Pre-shipment finance:

 Per-shipment investment is finance, allowed by a Bank to    an exporter, to meet the cost

up to shipment of the goods to overseas buyer. The purpose of the investment is to

purchase raw materials or finished goods or manufacturing processing, packing and

transporting the goods.

Post-shipment finance:

 There is time gape between exports of the goods and realization of the proceeds. So

exporter may require finance in that period to continue his business. So Bank may

finance against export document ensuring the following: Export document comply the credit terms. Buyer is Bona-fide. Parties past performance is satisfactory. Any other security in case of export under contract.

 Security of Pre-Shipment Investment:

   Security of pre-shipment investment is given bellow: FSIBL will mark on the related export L/C. FSIBL will finance against having sufficient time to procure the goods for export. Finance to be after arrival of the imported raw materials under Back to Back L/C. FSIBL will supervise the production from time to time ensure export of the goods in

time. FSIBL will adjust the liability proportionately from related export documents.

 EXP Requirement:

All export from Bangladesh must be declared by the shipper on EXP form to the FSIBL

enabling them to submit the duplicate within 14 days from date of shipment. The shipper

is required to repatriate the export proceeds within 4 months from the date of shipment

otherwise penalty is imposed upon them A careful watch is to be ensure that the sale

proceeds are received on due date. A due date diary must be maintained to pursue the

individual case.

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Inspection of Goods:

The goods should be kept ready for inspection of the competent authorities and issue a

certificate of quality control required under regulation: for example: Export promotion Bureau. Custom Authorities who will inspect the goods under Sea customs Act. Chamber of commerce and industry. Other agencies authorized to inspect the goods before shipment.

Send shipping advice:

On shipment of goods and receipt of bill of lading and other documents from the clearing

and forwarding agents send a shipping advice to the importer abroad so that the latter

may stand making arrangement for taking delivery of the consignment.

 Shipping Requirement of Exporter in the Context of Export:

Every exporter under foes certain sequential formalities when takes up the venture of

exporting goods First of all the exporter comes into contact with the buyer and negotiate

the commodity contract, while negating the commodity contract and exporter takes into

consideration three resects: A Cost of the commodity Insurance. Freight component

Required Documents /Papers of L/C Stipulation: There are different documents and papers of stipulation are given bellow: Commercial invoice Certificate of origin Negotiable bill of lading Pre-shipment inspection certificate. Quantity and Quality certificate. Fumigation certificate depending the nature of cargo Photo sanitary certificate depending the nature of cargo

Sending Export document on Collection:

If the documents are discrepant exporters Bank will send the document to the issuing

Bank on collection, at the request a risk of the exporter. At the time of sending documents

on collection the following voucher to passed. Dr. outward foreign bill lodged A/C

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Cr. outward foreign bill lodged A/C

After realization of the proceeds, above entries to reserve and the following voucher to be

passed. Dr. IBG A/C IBW@ Mid rate (Bangladesh Banks buying rate +TT documentary /2) Party’s current account Cr. Party’s investment account Cr. Party’s investment income a/c Cr. Income a/c Cr.Telex charge Cr. F.C held against Back to Back L/C

 Export Incentives:

To promote the export business, government has declared some incentives for exporter.

Following are the main incentives as per export policy 1997-2002 declared by the ministry

of commerce: Retention Quota: Export dared allowed to deep 40% of their export proceeds to their

F.C A/C It is 7.5% in case of export against switch import is higher, proportionately. Investment Period: Normally export finance, as working capital is allowed for 180

days. Now it has been extended up to 270 days for frozen foods, tea and leather Credit Card: Exporters are allowed to get credit cards for business tour. Investment Facility: Commercial Bank may finance for export, up to 90% of FOB

value of the export L/C No Compensation: Commercial Bank will not impose compensation on overdue sight

export bill under irrevocable export L/C. Duty Draw Back: Those exporters, who are not available bonded warehouse facility,

are entitled to get duty draw back facility. They will pay the duty to the custom authority at the time of importing the raw materials and after realization of the export proceeds. They will apply for draw back duty paid earlier authority will pay back the duty.

Duty Free Capital Machinery: 100% export oriented industries outside EPZ are also allowed to import capital machinery’s free of duty.

Cash Incentives: Deemed exporters are allowed 25% cash incentive by Bangladesh Bank

Stock Lot Disposal: Rejected garments and leather may be sold to local market paying 20% duty on the imported raw materials.

Meaning of Remittance:

The word “Remittance” originates from the word “remit” which means to transmit money/

fund. In banking terminology, the work “remittance means transfer of fund one place to

another. When money transferred from one country to another is called “Foreign

Remittance”

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Foreign Remittance:

The basic function of this department are outward and inward remittance of foreign

exchange from one country to another country. In the process of providing this remittance

services; it sells and buys foreign currency. The conversion of one currency into another

takes place at an agreed rate of exchange in where the banker quotes, one for buying

and another for selling. In such transactions the foreign currencies are like any other

commodities offered for sales and purchase, the cost (convention value) being paid by

the buyer in home currency, the legal tender

 Function of the Remittance Section: Handling of all incoming and outgoing foreign and local remittance is the major Function for this department. Handling of incoming and outgoing T.T. Outstation Cheque Collection. Outstation Cheque Purchase. Demand Draft Handling. Other assorted work

Remittance of Fund

Remittance of fund is to be collected in two ways. First of all, it comes from inward basis

and then, it happens outward.

8.5 Inward remittance

Any person can remit funds to another through Inland remittance by using the following

means of remitting funds with charges Pay Order (PO). Demand Draft (DD). Telegraphic Transfer (T.T). Mail Transfers

 Pay Order (PO)

A pay order is a written under, issued by a branch of the Bank, to pay a certain sum of

money to a specific person or a bank. It may be said as to be a banker’s cheque as it is

issued by a bank and payable by itself.

 

Demand Draft (DD)

This is an instrument through which customers money is remitted to another

person/Firm/organization in outstation (outside the clearing house area) form a branch of

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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).

Telegraphic Transfer (TT):

A Telegraphic Transfer is a method of remittance, which is effected by the banker through

a coded telegram attested by secret cheek signal, on receipt of which, the paying office

pay the amount to the payee by crediting his account.

Foreign Remittance:

Foreign remittance is the transfer of foreign currency from one country to another country.

In another word, foreign remittance means, remittance in foreign currency that are

received in and made out abroad. Actually, foreign remittance is purchase and sale of

freely convertible foreign currencies as permissible under exchange control regulations of

the country. Foreign remittance is very important for the country as valuable foreign

exchange is involved in the transfer mechanism. Foreign remittance takes place in two

ways-

FIGURE: Modes Of Foreign Remittance

Instruments of Foreign Remittance:

Cash for         : Dollar, pound, France Fr. Riyal or any other currency.

T.C.                : Travelers cheque.

F.D.D              : Foreign demand draft.

T.T                  : Telegraphic Transfer, cable transfer or swift transfer.

M.T                 : Mail Transfer.

I. MO              : International Money order.

Cheque           : By any person & institution.

P.O                  : Payment order.

Inward Remittance:

Remittance comes from foreign countries to our country is called inward remittance. To

the bankers or ADs inward remittance means purchase of foreign currency by authorized

dealers. Generally, inward remittances are received by draft, mail transfer, TT, purchase

of foreign bills & travelers Cheque, export bills. Basically, these are the formal channels of

receiving inward remittance. A local bank also receives indenting commission of local firm

also comes under purview of inward remittance.

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 Outward Remittance:

Remittance from our country to foreign countries is called outward foreign remittance. On

the other word, sales of foreign currency by the authorized dealer or formal channels may

be addressed as outward remittance. The authorized dealers must utmost caution to

ensure that foreign currencies remitted or released by them are used only for the

purposes for which they are released. Out ward remittance may be made by appropriate

method to the country to which remittance is authorized. Most outward remittance is

approved by the authorized dealer on behalf of Bangladesh Bank. Outward remittance

may be made for following purposes - Travel Medical treatment Educational purpose Attending seminar etc. Balance amount of F.C account. Profit of foreign companies. Technical assistance New exporters up to USD 6,000/- for business promotion F.C. remittance can be made for fare, exhibition from export retention quota.

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Chapter: 4

Customer service in First Security islami Bank Limited

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Customer service

Customer service is the service provided in support of a company’s Core Product. Customer Service most often includes answering question, taking orders, dealing with billing issue, handling complaints, and perhaps scheduling maintenance. Customer service can occur on site, or it can occur over the phone or via the internet. Many companies operate Customer service call centers, often staffed around the clock. Typically there is no charge for customer Service. Quality Customer Service is essential to building Customer relationships. It should not, however, be confused with the service provided for sale by a company.

The success of Customer Service is the Customer Satisfaction. It depends on the product’s actual performance relative to a buyer’s expectations. A Customer might experience various degree of satisfaction. If the product’s performance falls short of expectations, the Customer is satisfied. It performance exceeds expectations; the customer is highly satisfied or delighted.

Customer Service of a company has to have the Responsiveness, which means the willingness to help customers and to provide prompt service. This dimension emphasizes attentiveness and promptness in dealing with Customer request, question, complaints, and problems.

Responsiveness is communicated on customer by the length of time they have to wait for assistance, answer to question, or attention to problems. Responsiveness also capture the notion of flexibility and customizes the Service to customer needs.

Customers Service in banking Business

Customer service in bank may be grossly categorized into deposit services, and credit services. Customers’ services generally means taking deposit on money from customers, giving loans and advances to the customers and various Ancillary ( Balance Sheet Service). These activities require an arrangement of service process. Branch expansion, Survey of economic environment, location of deposit potential, identification of credit needs, and collect information about target markets. Accordingly, banks make arrangement to deliver their services to the potential customers in terms of acceptance,

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Sanction, Advances, Commitment, Transfers, and Remittance, Opening of letter of credit (L/C), Export Documents Handling Bills Collections and many Other Services.

Customer Services in First Security islami Bank

Like some other Banks FSIBL has also some Services that it provides its potential customers. National Bank Limited usually provides two types of services:Corporate Banking Service:

FSIBL is recognized as the good financial institution in corporate finance services sector in our country. Its professional management team caters to the needs of its clients and provides them with a wide range of financial services some of which are project financing and investment consultancy, syndicated debt and equity, bond and guaranties, local and international treasury products.

Institutional Banking:

The institutional service provided by FSIBL is designed for different fund based organization like donor agencies, NGOs, voluntary organizations, foreign missions, airlines, shipping lines and their personnel with the facilities, which are freely convertible to major international currencies, local and foreign currency remittances through a large network of branches and correspondence.

Commercial Banking:

FSIBL offers different commercial banking facilities to all commercial concerns specially those with particular involvement with import and export finance. It provides the finance facilities like-trade finance facilities including counseling, confirming export L/Cs; and issue of import L/C backed by its correspondent network, it also provides bonds and guarantees, investment advice, leasing facilities, project finance opportunities.

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Quasi-Government Banking:

The quasi government service of FSIBL helps the government by providing different financial service like efficient and knowledgeable management of trade business ( import and export), skills in barter, swaps and counter trade deals. In addition, the opportunity of debenture finance for new projects, possibilities of hard currency loans and lease deals, the opportunity of syndicated hard currency, financing of loans and import L/C, highly efficient account management and remittance handling within the country.

Services of the Bank

Credit Card

Through its Credit Card, FSIBL Bank Limited has not only initiated a new scheme but also brought a new life style concept in Bangladesh. Now the dangers and the worries of carrying cash money are memories of the past.

Credit Card comes in both local and international forms, giving the client power to buy all over the World. Now enjoy the conveniences and advantages of Credit Card as you step into the new millennium.

FSIBL ATM Service

FSIBL Bank Limited has introduced ATM service to its Customers. The card will enable to save our valued customers from any kind of predicament in emergency situation and time consuming formalities. FSIBL ATM Card will give our distinguished Clients the opportunity to withdraw cash at any time, even in holidays, 24 hours a day, 7 days a week.

Western Union Money Transfer

joining with the world's largest money transfer service "Western Union", FSIBL has introduced Bangladesh to the faster track of money remittance. Now money transfer between Bangladesh and any other part of the globe is safer and faster than ever before.

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This simple transfer system, being on line eliminates the complex process and makes it easy and convenient for both the sender and the receiver. Through FSIBL - Western Union Money Transfer Service, your money will reach its destination within a few minutes.

Western Union is a global leader in Money transfer and message services. With the help of western Union a consumer or a Businessman can transfer money or make payments more quickly and more securely from one part to another part of the world. There are 1, 17,000 Western Union Agent Locations over 185 countries in the world. It’s the largest network in the world. Western Union markets transact more than one quarter Billion money every year.

The procedures of Transfer Money through Western Union:

In our Branch, we take one of the following document as a Valid ID before the payment of western Union.

i) Photocopy of 1st three pages of Valid Passport. In case of renewal, the photocopy of renewal page will be added.

ii) Nationality Certificate with Photograph from Chairman/Commissioner/MP. The said person will verify the signature photograph of the applicant.

iii) Bank’s Certificate with photograph A/c Maintaining with the Bank. The Authorized Officer/Branch in Charge will verify the signature & photograph of the applicant.

iv) Any A/c Holder of our Branch. In this case we will use the A/c Number as ID

v) Voter ID.vi) Service ID (In case of reputed service holder)

Issuance of DD, TT & PO.

This Bank offers DD, TT & PO for transferring the funds from one place to another to our Customer. It is Called Inland Remittance. It is one kind of sources of Income of the Branch. Bank can issue DD, TT & PO against cash or Cheque. To issue the above we have to follow some rules & regulations.

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1) Issuance of DD. (Demand Draft)

DD is a written order from one branch to another branch of the same Bank. It is not payable to bearer of the instrument. In practice, we can not issue DD between Branches within the same city. we need to complete the following steps for issuing a DD

2) Issuance of TT. (Telegraphic Transfer)

TT is one kind of telegraphic/Telephonic message order to pay some one the

fund between two Branches of the same Bank. It is the quickest & easiest way

to transfer fund from one place to another place.

The charges for issuing of DD & TT of our BranchDD/TT 0.10% of the total DD/TT AmountTelex Charge Tk. 40 fixedVAT 2% of Commission amount

3) Issuance of PO (Pay Order)

PO is a written order, issued by branch of Bank to pay a certain amount to a specific person or organization. Whose favor we issue PO is called Payee. Some time PO is sold to individual on payment of value, and then the individual is called the purchaser. A pay order has three parts such as:

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Chapter: 5Findings and Analysis

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Customer Satisfaction Level analysis

Besides every quality report some research or analysis is needed. I tried to analyze the

questionnaire through questionnaire and Graph in order to measure the over all service

condition delivered by the customer service of the bank. The methodology by which the

whole survey is analyzed was very simple and in some question I follow Likert Scale for

perfection of the analysis. I also tried to represent the questionnaire through Chart

Diagram. Basically I tried to formulate the questions such a way that the analysis can

show the over all service condition and the satisfaction level of the customers. The first

fourteen questions are actually about the overall performance of the customer care

Commercial Bank of National Bank Ltd.

1. The first question is ‘How did you come to know about FSIBL Ltd.?

The sources are shown in the table:

Newspaper Staff of the Bank

Relatives Business Magazines

Others

14% 23% 10% 11% 42%

Table-1

So from this analysis I found that 42% people came to know about this bank from external source. The marketing structure of the FSIBL Ltd. goes very defensive mode. Only 14% customers of 100 are concern about FSIBL by their publicity. So I think that the FSIBL should concentrate more on their advertising at different media.

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Fig: Graphical Representation of Table-1

2. The second question of this part is why the customers maintaining accounts with the Bank?

Better Customer Service

Trustful Than Other Bank

Good Liquidity Higher Interest Rate

Other Facility

55% 10% 3% 7% 25%

Table-2

From the table 2 I found that the customers are satisfied with the customer service of the FSIBL. For this basis they are maintained their accounts with this bank. But as an intern I found that some customers are not happy with the interest rate of the bank. If FSIBL upgrade all factors concerning the table then definitely deposit growth will take place rapidly.

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Fig: Graphical Representation of Table-2

3. The third questions of this part is, What types of account you are maintaining with this bank?

Saving Account Current Account

Fixed Account Foreign Account

Other Type of Account

42% 24% 20% 5% 9%

Table-3

Generally First Security Islami Bank Ltd. is the renowned commercial bank in Bangladesh. The customers of this bank are mainly maintaining saving account for its smart interest rate and withdrawal facilities. But there are other customers like dealers; business person’s opens current account, fixed deposit and foreign accounts. Students can easily apply for foreign remittance with the help of the bank. So in this sense saving accounts are more famous for its customers.

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Fig: Graphical Representation of Table-3

4. The forth question is what are the services that customers enjoying from this bank?

Maintaining Deposit Account

Remittance Facilities

Corporate Banking Facilities

Personal loan and service

Other

65% 15% 10% 3% 7%

Table-4

Table shows that customers enjoy mostly by maintaining deposit accounts with the help of the customer care service. The success of the customer care service is better comparable to the other service provided by this bank. As an intern I found that remittance service is growing rapidly make its own customers. But people want to get personal loans that FSIBL does not offer for all customers. The corporate client seems good position. So this bank should focus more through its customer care service.

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Fig: Graphical Representation of Table-4

5. The fifth question is what kind of service customer gets from customer care?

Excellent Good Average Satisfactory Dissatisfactory

45% 23% 8% 20% 4%

Table-5

This questionnaire is truly focused on customer care. So it is mandatory to know the satisfaction of its customers. Out of 100 people 45% people rate customer service excellent. The response is good enough to mention that FSIBL Ltd. focuses that their interest is always their customers. Only 4% of 100 people show dissatisfactory which FSIBL tries hardly to overcome.

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Fig: Graphical Representation of Table-5

6. The sixth question is what kind of service it provides than other Banks?

Very Good Good Average Bad Very Bad

32% 40% 15% 7% 2%

Table-6

Table shows that FSIBL. service is Good compare to the other banks in Bangladesh. For wider service it increases its branches across the country. The newest facilities are added day by day with proper care. Most importantly the bank has its own corporate client which is very important now a day.

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Fig: Graphical Representation of Table-6

7. Do you think that the fees and service charges are high comparable than other bank?

Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

6% 9% 10% 29 46%

Table-7

The service charges are low than other banks. Out of 100 only 46% person people believe that FSIBL cuts reasonable service charges compare to the other banks. Most importantly it sometimes allows minimum charges to its respective client. So though its service is excellent but its service charge is very low.

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Fig: Graphical Representation of Table-7

Question no 8 views of the customer about the behavior of the Customer Care?

Excellent Good Average Satisfactory Dissatisfactory

54% 25% 2% 13% 6%

Table-8

Out of 100 54% people believes that the behavior of customer care is excellent. It offers online banking facilities for its customers. Only 6% people are dissatisfied by the customer care for their internal purpose. But most important is that it lists all complain to its mind for furthest correction.

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Fig: Graphical Representation of Table-8

Question no 9 focuses to its customers that do they think First Security islami Bank Ltd. has a wonderful internal environment to deliver the customer service?

Strongly agree agree Neither agree nor disagree

disagree Strongly disagree

20% 60% 14% 5% 1%

Table-9

Although l Bank concerns for its customers, it maintain a quality internal and external environment for its customers. The system is good. Always there is a friendly atmosphere is waiting for its customers.60% people agrees with this. The bank also tries to improve its Organizational behavior for the customers.

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Fig: Graphical Representation of Table-9

Question no 10 request the customer to give their view about problems and its

quickly resolving by the Customer service.

Strongly agree agree Neither agree nor disagree

Disagree Strongly disagree

30% 51% 6% 11% 2%

Table-10

Table no 10 shows that out of 100, 30% people strongly and 51% is agree that their problems are quickly resolved by the customer service of FSIBL. Daily problems are resolved quickly by this department. Though it has different work loads and work activities, it offers supreme services to the customers.

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Fig: Graphical Representation of Table-10

Question no 11 inquire the customer that how satisfied are they with the service of the

ATM service?

Strongly Satisfied

Satisfied Neither satisfied nor dissatisfied

Dissatisfied Strongly dissatisfied

9% 38% 2% 49% 2%

Table-11

The only preferable problem in the customer care is The ATM service. The customers are not truly satisfied with their ATM card service. In the branch I have discussed with customers who are dissatisfied and they told me that they found most of the time the ATM machine is out of order and limited to different area. But important factor is that it tries to improve vast ATM service to its customers.

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Fig: Graphical Representation of Table-11

Question no 12 wants from the customers about their rating for the customer

service of this Bank?

Very good Good Neither good nor poor

poor Very poor

75% 13% 7% 4% 1%

Table-12

Out of 100 people 75% rates very good service and only 5% rates poor. The success of

this bank seems strong in respect to its customer service. It offers various services to its

different customers and all kinds are well customized for the people. The clients who are

newcomers can easily choose their preferable service. The maximum success for the

customer care is because of this.

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Fig: Graphical Representation of Table-12

Question no 13 focused the customers need about further improvement of the customer

care.

Strongly Agree Agree Neither Agree nor disagree

Disagree Strongly Disagree

11% 51% 15% 20% 3%

Table-14

Table shows that 51% people wants to improve its customer care with multi dimensional

activies.Now a days customers wants more services with security. The bank provides

excellent services to its customers. The clients want to make more account with this bank

for various purposes. So customers care should come with new features and new

multidimensional products and give improved services.

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Fig: Graphical Representation of Table-14

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Findings:

While doing my Internship Program I could find some problems faced by the

customers.

In case of First Security Islami Bank Ltd. Limited, the customer information

quality is not satisfactory enough according to the perceptions of the customers.

Lack of information about the Customer banking Services, customer usually have

to face hesitation for the right information for the right authorized officer.

The accounting system of general banking is not that much efficient and too show

server to work.

In case of making of voucher, officer has found that sometimes they mistake on

proper voucher writing and the proper amount.

FSIBL partially automate their operations, so many works are still done by

manually. On the other hand, most of the banks automate whole activities, which

make their work easier and faster.

Some customers do not understand how to fill up the account’s opening form.

Refusing to provide introducer or photo for opening accounts.

Cheques, deposit slips are not written properly and for that reason it is quite

frequently seen that these instruments are been returned from the clearing

house.

Some customers are not interested or not able to write D.D., T.T., pay order

voucher. And they also don’t know that Bank must cut some commissions

while issuing the DD, PO, TT, etc.

Sometime customers miss behave with the employees and stuffs

Lack of education and of adequate knowledge of general banking peoples in

our country are not interested in involving Bank activities.

Customers are not satisfied with the ATM services of the Bank. Most of the

cases the machine is out of order and the technicians are not available.

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SWOT Analysis

The acronym for SWOT stands for:

Strength Weakness Opportunity Threat

The SWOT analysis comprises of the organization’s internal strength and weakness and external opportunities and threats. SWOT analysis gives an organization an insight of what they can do in future and how they can compete with their existing competitors. This tool is very important to identify the current position of the organization relative to other, who are playing in the same field and also used in the strategic analysis of the organization.Strength

Accountable corporate governance Experienced top management Good asset quality In Bangladesh FSIBL has wide range of customer base on is operating efficiently

in this country FSIBL has a bulk of qualified, experienced and dedicated human resources FSIBL has the reputation has being the provider of good quality service to its

potential customer FSIBL recently providing ATM facility to the customer. This is will make a good

strength of FSIBL . Satisfactory business growth Diversified product lines Good operating efficiency Social welfare

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Weaknesses

Dependent of fixed deposits Moderate risk management system Limited delegation of power MIS at primary stage Limited branch network Limited market share

Opportunities

Draft drawing arrangement of major banks ATM, POS and other forms of Alternate delivery channels Product based on needs of NRB’s Increasing service quality and awareness among NBL staff through training SME and agro based business Real time on line banking Credit card in duel currency Basel-II compliances to tap advantages from RM system.

Threats

Different services of FCB’S ( phone banking/home banking) Existing card services of standard chartered grind lays bank Daily basis interest on deposit offered by Brac Bank Entrance of new PCB’S increased competition in the market Market pressure for increasing the SLR Market pressure for dollar crisis Political interference and government regulation Unstable political environment of the country More banks are entering into the remittance business More number of branches of other banks have commenced business as outlets for

Western Union Privatization of government banks resulting in discontinuation of TT arrangement

due to conflict of business Rate war with Sonali, IFIC, Uttara, and bank Asia resulting in lower exchange

again.

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Recommendation:

Recommendation of these reports has been made on basis of the research findings of the overall banking of national bank limited. With my little experience in bank, I observed and find out some aspect of their banking. On the basis of my observation I would like to recommend the following recommendation:

Management should focus more on quick service, empathy, duration of loan repayment, card issues and loan processing time to ensure overall customer satisfaction, as this has been statistically proven.

The bank has to increase their advertisement and also increase their social activities.

They have to go with the people’s needs and demands. They have to explore their

name to the people that every one can know about FSIBL Ltd.

In this time there is so much competition between each other that a single step can

change the all direction. Today’s people are very much willing to do banking, which

one is near to them. So if the number of branches will not increases than it can lose

the customer.

Continuous monitoring & evaluation on application of internal & external control

system, audit policy, policy of financial risks, existing rules & regulation (internal &

external), and International Financial Reporting Standards (IFRSs) and Bangladesh

Bank relevant circulars have been followed.

Banking is a service-oriented marketing. Its business profit depends on its service

quality. That’s why the authority always should be aware about their service quality.

Employees must give individual attention to consumer and efficiency should be

ensured.

Customer service should be pleasant and prompt.

Speed in general banking activities and made quick

Product of General banking activities should be increased and customized with

customer’s preference.

More officer need to be employed

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The bank should adopt more technological devices to provide better services

Need to increase the number of ATM booths.

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Conclusion: First Security Islami Bank limited has positive image itself as the local banks among

third generation bank. Bank is committed to keep up its promise to provide cordial

services in baking to its valued customers. FSIBL management has always put special

effort to uphold the interest and trust of their customers. FSIBL is initiating new

products and concentrating on the consumer demand that is drawing a difference

between FSIBL with other third-generation banks.

This research has provided some interesting insight into what kind of service the

customers give importance to and what quality they get from FSIBL. It is quit obvious

from the research that the customers requirements are not fully met and they are very

dissatisfied with some of the aspects of the bank (loan interest rate, different service

charges, convenience location, organized processing etc.) again the research relevant

that only one third of customers where more of less satisfied with the services of the

bank and more than half of the respondents were on the neutral side of satisfaction

line. FSIBL should attract this half and bring then to the positive side of the road so

that strong relationship with the customers can be maintained.

In order to retain competitive edge, investment in technology is always a top agenda

and under constant focus. Keeping the network with in a reasonable limit, FSIBL

strategy is to serve the customers through capacity buildings across multi delivery

channels. They are better placed and poised to take customers through fast changing

times and enable them compete more effectively in the market they operate.

The main purpose of this report is to study “Customer Satisfaction Of First Security

Islami Bank Limited” considering all the attributes which influence customers should

be more effective for them. Due to the significantly important of those factors they

can compete in the market in the near future.

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Reference/Bibliography

National Bank Limited (NBL)’s Brochures, Leaflets and Operational Manual.

Commercial Bank Management(5th Edition) Peter Rose

Research Methodology(2nd Edition) C. R. Kothari

Web Site of National Bank Limited (NBL)www.nationalbankltd.com

Managing Core Risks in Banking Credit Risk Management Bangladesh Bank

Reports on Banks

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AAPPENDIXPPENDIXQQUESTIONNAIREUESTIONNAIRE

Dear Respondent, I am a student Premier University, Chittagong, Bangladesh. I am going

to analyze the Customer Satisfaction of National Bank Limited of Sk Mujib road. This

study is only for use of my academic purpose and the provided information will be

treated confidentially. Thank you in advance for your kind cooperation.

Please read the questions carefully and just put a tick ( √ ) in the respective answer and kindly give your judgments where necessary.

1. How do u come to know about National Bank Limited?

a. Newspapers

b. Staff of the

c. Relatives

d. Business magazines

c. Others

2. Why the customers maintaining accounts with National Bank?

a. Better customer service

b. Trustful than other banks

c. Good liquidity

d. Higher interest rate

e. Other facility

3. What types of account you are maintaining with this bank?

a. Saving account

b. current account

c. fixed account

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d. Foreign account

e. Other type of account

4. What are the service that customers enjoying from this bank?

a. Maintaining deposit account

b. Remittance facilities

c. Corporate banking facilities

d. Personal loan and service

e. Others.

5. What kind of service customers get from customer care?

a. Excellent

b. Good

c. Average

d. Satisfactory

e. Dissatisfactory.

6. What kind of service it provide than other banks?

a. Very good

b. Good

c. Average

d. Bad

e. Very bad 7. Do you think that the fees and service charges are high comparable than other banks?

a. Strongly agree

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b. Agree

c. Neither agrees Nor disagrees

d. Disagree

e. Strongly Disagree

8. Views of the customer about the behavior of the customer care?

a. Excellent

b. Good

c. Average

d. Satisfactory

e. Dissatisfactory.

9. Focuses to its customer that do they think National Bank Ltd has a wonderful international environment to deliver the customer service?

a. Strongly agree

b. Agree

c. Neither agree Nor disagree

d. Disagree

e. strongly disagree

10. Request the customer to give their view about problems and its quickly resolving by the customer service?

a. Strongly agree

b. Agree

c. Neither agree Nor disagree

d. Disagree

e. Strongly disagree

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11. Inquire the customer that how satisfied are they with the service of the ATM service?

a. Strongly satisfied

b. satisfied

c. Neither satisfied Nor satisfied

d. Dissatisfied

e. Strongly dissatisfied.

12. Wants from the customers about their rating for the customer service of this bank?

a. Very good

b. Good

c. Neither good Nor poor

d. Poor

e. Very poor.

13. Focused the customers need about further improvement of the customer care?

a. Strongly agree

b. Agree

c. Neither agree Nor agree

d. Disagree

e. Strongly disagree.

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