Internship Report
On
An Appraisal of Customer Service Of
International Finance Investment & Commerce Bank (IFIC) Ltd
Submitted by
“ Always design a thing by considering it in its next large context- a chair in a room, a room in a house, a house in an environment, an environment in a city plan. “
-Elie Saarinn.
The purpose of this report to present and findings of my study as an internee in the Mercantile Bank Limited as a partial requirement for BBA degree in the AsianUniversity of Bangladesh. The main objective of the report is to know about A Modern Banking Perspective of Mercantile Bank LTD.
The study is made under the supervision of ProfessorMd. Ashraf Hossain, (Dean) AsianUniversity of Bangladesh.
Mercantile Bank has been incorporated on May 20th, 1999 in Dhaka, Bangladesh as a public limited company with the permission of the Bangladesh Bank; MBL commerce formal commercial banking operation from the June 02, 1999. The bank stood 42 branches all over the country up to 2008.
In the report, I have also mentioned the overall services that Mercantile Bank Limited has been offering to their customers. The finding is that Deposit and Credit programs Mercantile Bank Limited are performing nicely. There are two so handle of this department, performance expectable. They fulfill their target. As a result Branch satisfied of this department.
CHAPTER-01
INTRODUCTION
(1.1)A Summary of IFIC Bank:
IFIC Bank Ltd. is one of those banks that plays important role in the economy of Bangladesh. There is Seventy six Branch of IFIC Bank all over the country. The activities of the branches are more or less same but there are some differences as per the size of the branches. As I was placed to Banani Branch of IFIC Bank as an intern, my focus of the report will be basically on the functions of Banani branch only.
Basically IFIC Bank, Banani Branch always tries to be the right partner for its customers. IFIC Bank is to provide service to their clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make our position unique in giving quality service to all institutions and individuals that we care for.
(1.2) Objective of the Report:
The primary objective of this report is to use the theoretical concepts in analyzing real life of Practical Orientation in Banking activities, which is a partial requirement of the BBA program. But the objective behind this study is something broader. The broad objectives of this report are summarized in the following, manner:
- To present an overview of IFIC Bank.
- To make an appraisal of customer service of this Bank.
- To highlight the activities and operations.
- To find out the customer needs
- To find out the customer problems.
- To make a comparison of service quality with other commercial banks.
- To meet the terms with the entire branch banking procedures.
- To scrutinize the performance of the branch as well as IFIC Bank Ltd. as a whole.
- To gain practical experiences and view the application of theoretical knowledge in the real life.
(1.3) Scopes and Methodology:
The scope of the report is the evaluation of the performance of customer service of IFIC bank where I have undertaken my internship program. This report helps me to understand the clear real-time experience about the total management of IFIC Bank Ltd. It helps me to understand, how the bank manage its total process? It also helps me to understand how they deal with the customer.
This report has been prepared on the basis of experience gathered during the period of internship from 30th April to 6th August. Within this period I visited two department namely General Banking and Loans & Advances departments. There were twenty customers who have helped me by answering my questionnaire. I was lucky because I got very friendly customers and officers to collect data about my report during my internship program and I am really very grateful to them for their tireless cooperation to me.
(1.4) Research design and sources:
The internship program was fully completed in a very efficient and effective business environment. The internship was conducted on 30th April to 10th August 2009 through different published papers and questionnaire session with the customers and officers of the branch.
Basically the required data are being collected from primary and secondary sources. For the primary session I had to go through with questionnaire to the customers and for the secondary information I had to collect banks published materials.
Primary data is collected from:
- Open ended and close ended questions.
- Personal experience gained by visiting, different desks.
- Personal investigation with bankers.
- Face to face communication with employees of the IFIC Bank Ltd.
Secondary datais collectedfrom:
- Annual reports of IFIC.
- Previous performance matters booklet.
- Journals of the Bank.
- Different books, training papers, manuals etc. related to the topic.
- Official Website of the Bank.
- Different Brochures.
Z2 PQ
Sample size- the sample size is n=
e2
Here,
n= sample size
z2= Confidence level
e2= estimated error
p= the estimated proportion is present in the population.
q= 1-p
(1.64)2 .05.05
n = = 68.08=68
(0.1)2
Here,
Z= 1.64 from Z table, e= 10% error, p= .05 q= 1-p
(1.5) Limitations of the report:
- Workload was a great barrier to prepare this report.
- Self observation was highly required because the officers of this bank couldn’t help though they are being always very busy with customers. Even though they tried a lot to help me in the rush hour and whenever they become quite free.
- The duration was very short to prepare a better report. But I tried with my level best to prepare this report as better as could be.
- Due to lack of previous job experience there might have some shortage of proper information but through maximum efforts I tried to avoid any short of mistakes.
- One of the major limitations is the shortage of internship period. Since three month is not enough to know everything of a Bank.
- The report is based on only Banani branch and that might not make an overall clear customer service quality and other activities of the IFIC bank.
CHAPTER-02
Background of the Organization
(2.1) Historical background of IFIC bank:
1976 - Established as an Investment & Finance Company under arrangement of joint venture with the Govt. of Bangladesh.
1980 - Commenced operation in Foreign Exchange Business in a limited scale.
1982 - Obtained permission from the Govt. to operate as a commercial Bank.
1983 - Setup its first overseas joint venture (Bank of Maldives) on the Republic of Maldives.
- Commenced operation as a full-fledged commercial Bank in Bangladesh.
1985 - Set up a joint venture Exchange Company in the Sultanate of Oman.
1987 - Set up its first overseas branch in Pakistan at Karachi.
1993 - Set up its second overseas branch in Pakistan at Lahore.
1994 - Set up its first joint venture in Nepal for banking operation.
1999 - Set up its second joint venture in Nepal for lease financing.
2003 - Bank celebrated its 20th founding anniversary.
- Overseas Branches in Pakistan amalgamated with NDLC, to establish a joint venture Bank: NDLC-IFIC Bank Ltd., subsequently renamed as NIB Bank Ltd.
It conveys its objective via their motto:“Your Satisfaction First.”
International Finance Investment and Commerce Bank Limited (IFIC Bank) is a banking company incorporated in the People’s Republic of Bangladesh with limited liability. It was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions abroad. The Government held 49 per cent shares and the rest 51 per cent were held by the sponsors and general public. In 1983 when the Government allowed banks in the private sector, IFIC was converted into a full-fledged commercial bank. The Government of the People’s Republic of Bangladesh now holds 35% of the share capital of the Bank. Leading industrialists of the country having vast experience inthe field of trade and commerce own 34% of the share capital and the rest is held by the general public.
IFIC Bank Ltd. is one of those banks that plays important role in the economy of Bangladesh. There is Seventy Six Branches of IFIC Bank all over the country. The activities of the branches are more or less same but there are some differences as per the size of the branches. As I was placed to Banani Branch of IFIC Bank as an intern, my focus of the report will be basically on the functions of Banani branch only.
(2.2) Strategies of the bank:
IFIC Bank Limited mainly follows top down approach to take necessary decisions for the company. Basically they follow the centralize strategy where the Head Office of the Bank control and monitor all the activities of its branches. In case of marketing strategy they basically depend on ‘word of mouth’ as they are already well reputed for its long-term service in the banking industry.
The branches of the Bank cover all tile important trading and commercial centers in Bangladesh. At present it has 76 branches within Bangladesh. All the branches are equipped with computers in addition to modern facilities, logistics and professionally competent manpower.
(2.3) Mission of the IFIC bank:
Our Mission is to provide service to our clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make our position unique in giving quality service to all institutions and individuals that we care for.
We are committed to the welfare and economic prosperity of the people and the community, for we drive from them our inspiration and drive for onward progress to prosperity. We want to be the leader among banks in Bangladesh and make our indelible mark as an active partner in regional banking operating beyond the national boundary.
In an intensely competitive and complex financial and business environment, we particularly focus on growth and profitability of all concerned.
(2.4) Board of Directors:
Unlike other banks in the private sector, Board of Directors of the bank is a unique combination of both private and Govt. sector experience. Currently it consists of 13 Directors. In spite of them eight represent the sponsors and general public and four senior officials in the rank and status of joint Secretary/ Additional Secretary represent the Govt. Managing Director is the ex-officio Director of the Board.
1 / Mr. Mohammad Lutfar Rahman / Chairman2 / Mr. Abu Tahir Mohammad Golam Maruf / Director
3 / Mr. Murshed Murad Ibrahim / Director
4 / Mr. Aminur Rahman / Director
5 / Mr. Md. Yasin Ali / Director
6 / Mr. Didarul Alam / Director
7 / Chowdhury Nafeez Sarafat / Director
8 / Mr. Gulzar Alam Chowdhury / Director
9 / Mr. Tanim Noman Sattar / Director
10 / Mr. Mahmudul Huq Bhuiyan / Director
11 / Mr. Arastoo Khan / Director
12 / Mr. Syed Monjurul Islam / Director
13 / Mr. Mohammad Ali Khan, ndc / Director
14 / Mr. Mosharraf Hossain / Managing Director
(2.5) Objectives of the Bank:
The objectives of the bank are to promote joint participation of Government and private sponsors to establish joint venture banks, financial companies, branches and affiliates abroad to satisfy their customers.
It conveys its objective via their motto:“Your Satisfaction First.”
To establish, maintain, carry on, transact, undertake and conduct all types of banking, financial, investment and trust-business in Bangladesh and abroad.
To form, establish and organize any bank, company, institution or organization, singly and/or in joint-collaboration for partnership with any individual, company, financial institution, bank, organization, or any Government and/or Government agency for- the purpose of carrying on banking, financial, investment and trust business and/or any other business as provided hereafter.
To carry on any business relating to Wage Earner's Scheme as may be allowed by Bangladesh Bank from time to time including maintaining of Foreign Currency Accounts and any other matter related thereafter.
To contract or negotiate all kinds of loan, and or assistance, private or public, from any source, local or foreign, and to take all such steps as may be required to complete such deals.
To form, promote, organize, assist, participate or aid in forming, promoting or organizing any company, bank, syndicate, consortium, and institute or any holding or subsidiary company in Bangladesh or abroad for the purpose of undertaking any banking, financial, investment or trust business.
(2.6) Vision of the IFIC bank:
- Provide the greatest return to their shareholders by achieving sound profitable growth.
- Be perceived by customer and staff as the best wherever it operates.
- Have staff of the highest caliber.
- Excel in the way to work together to make decision and get things done.
(2.7) Management Structure:
The thirteen members of the Board of Directors are responsible for the strategic planning and overall policy guidelines of the Bank. Further, there is an Executive Committee of the Board to dispose of urgent business proposals.
Besides, there is an Audit Committee in the Board to oversee compliance of major regulatory and operational issues.
The CEO and Managing Director, Deputy Managing Director and Head of Divisions are responsible for achieving business goals and overseeing the day to day operation.
The CEO and Managing Director are assisted by a Senior Management Group consisting of Deputy Managing Director and Head of Divisions who supervise operation of various Divisions centrally and co-ordinates operation of branches.
Key issues are managed by a Management Committee headed by the CEO and Managing Director. This facilitates rapid decisions.
There is an Asset Liability Committee comprising member of the Senior Executives headed by CEO and Managing Director to look into all operational functions and Risk Management of the Bank.
(2.8) Risk Management:
In view of the global recognition towards need of an effective risk management and control systems in financial sector, IFIC Bank being cognizant of the importance of the subject, has prepared and implemented the following policy guidelines on Risk Management:
• Credit Risk Management.
• Asset Liability Management.
• Foreign Exchange Risk Management.
• Internal Control & Compliance.
• Prevention of Money Laundering.
(2.9)Joint Ventures Abroad:
(a) Bank of Maldives Limited:
IFIC is the first among the banks in the private sector to have operations abroad. In 1983, the Bank set up a joint venture bank in Maldives known as 'Bank of Maldives Limited' (BML) at the request of the Government of the Republic of Maldives. This is the only national bank in that country having branches throughout that country. IFIC Bank managed the affairs of BML from 1983 to 1992. IFIC Bank sold its shares in 1992 to the Government of the Republic of Maldives and handed over the Management of BML to Maldives Government.
(b)NIB Bank Ltd., Pakistan:
IFIC Bank had two branches in Pakistan, one in Karachi and the other in Lahore. Karachi Branch was opened on 26th April 1987, while Lahore Branch was opened on 23rd December1993.
To meet the Minimum Capital Requirement (MCR) of the State Bank of Pakistan, the Overseas Branches in Pakistan have been amalgamated with a reputed leasing company in Pakistan named National Development Leasing Corporation Ltd. Therefore, the existence of our above Overseas Branches has ceased w.e.f. 2nd October 2003 and a new joint venture bank entitled NDLC - IFIC Bank Ltd. emerged in Pakistan w.e.f. 3rd October 2003. The Bank was subsequently renamed as NIB Bank Ltd. IFIC Bank presently holds 7.31% equity in the Bank.
(c)Nepal Bangladesh Bank Ltd. (NB Bank)
Nepal Bangladesh Bank Ltd. (NB Bank), a joint venture commercial bank between IFIC Bank Ltd. and Nepal nationals, started operation with effect from June 06, 1994 in Nepal with 50% equity from IFIC Bank Ltd.
The Bank has so far opened 17 (seventeen) branches at different important locations in Nepal. IFIC Bank presently holds 25% shares in NB Bank.
(d) NepalBangladesh Finance & Leasing Limited (NB Finance):
NepalBangladesh Finance & Leasing Co. Ltd. (subsequently renamed as Nepal Bangladesh Finance & Leasing Ltd.), another joint venture leasing company between IFIC Bank Ltd. and Nepali Nationals, started its operation on April 18, 1999 in Nepal. IFIC Bank presently holds 15% share in the company.
(e) Oman International Exchange LLC (OIE)
Oman International Exchange LLC (OIE), a joint venture between IFIC Bank Limited and Oman nationals, was established in 1985 to facilitate remittance by Bangladeshi wage earners in Oman. IFIC Bank holds 25% shares, and the balance 75% is held by the Omani sponsors. The exchange company has a network of 10 branches covering all the major cities/towns of Oman. The operations of the branches are fully computerized having online system.
(2.10) Number of branches and locations of IFIC bank in Bangladesh:
In Bangladesh, IFIC Bank have 76 branches in the following cities:
Dhaka Division: In Dhaka it has 35 Branches. Inside of the Dhaka city it has 20 Branches those are
- Motijheel Branch
- Federation Branch
- Moulvi bazaar Branch (Old Dhaka)
- Dhanmondi Branch
- Shahtinagar Branch
- Gulshan Branch
- Islampur Branch
- Bangshal Branch
- Elephent Road Branch
- Naya paltan Branch
- Kawran bazaar Branch
- Malibagh Branch.
- Uttara Branch.
- Lalmatia Branch
- Pallabi Branch.
- North brook hall road Branch
- Banani Branch
- Mohakhali Branch
- Keraniganj Branch
- Dhonia Branch
Outside of the Dhaka it has 15 branches:
- Narayanganj Branch
- Netaiganj Branch
- Ghorasal Branch
- Madhabdi Branch
- Konabari Branch
- Mukterpur Branch
- Norshingdi Branch
- Bajitpur Branch
- Mymanshing Branch
- Faridpur Branch
- Tekerhat Branch
- Nawabpur Branch
- Ashulia Branch
- Rupganj Branch
- Shariatpur Branch
Chittagong Division:
- Agrabad Branch
- Khatunganj Branch
- Terri bazaar Branch
- Sheikh market Branch
- Hathazari Branch
- Fatikchari Branch
- Chawk bazaar Branch
- Shah Amanat market Branch
- Sheikh Mujib road Branch
- Cox,s Bazaar Branch
- Brahmanbaria Branch
- Comilla Branch
- Companiganj Branch
- Feni Branch
- Choumuhani Branch
Rajshahi Division: