customer satisfaction & general banking activities of national bank limited

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Customer satisfaction and General Banking Activities of National Bank Limited

1.1 Historical Background of National Bank Limited

The emergence of National Bank Limited in the private sector is an important event in the Banking arena of Bangladesh. When the nation was in the grip of severe recession, Govt. took the farsighted decision to allow in the private sector to revive the economy of the country. Several dynamic entrepreneurs came forward for establishing a bank with a motto to revitalize the economy of the country. National Bank Limited was born as the first hundred percent Bangladeshi owned Bank in the private sector.

National Bank Limited was incorporated in Bangladesh on 31st December 1981 and started its operation with effect from April 12, 1983. In 1983, the bank started with an authorized capital of Tk 100 million and paid up capital of Tk 44 million. The three types of shareholders of the bank are Group-A (Bangladeshi sponsors owning 50%), group-B (government of Bangladesh and public sector financial institutions owning 5%) and group-C (general public owning 45%).

The management of the bank is vested in a board of directors consisting of 21 members including the managing director of the bank. Managing directors is the chief executive of the bank. The bank carries out all traditional functions which a commercial bank perform such a mobilization of deposits, investment of funds, financing of traders, businessmen, industrialist, importers and exporters etc., the National Bank Limited opened new branches only eight during 1983, rising the total number of branches 76 in 2004, total number of employees of the bank which 242 in 1983 and increased to 2187 in 2004, during the short periods of its operation the bank has made notable progress in various activities. Since, commencement of its activities on 23rd March 1983, the bank mobilized the deposit of tk. 2085.50 million and Tk 3507.50 million at the end of the year 1983 to 2004 respectively. Foreign exchange business handled by the Bank during the year 1983 to 2004 was both TK. 1005.50 and TK. 10150.30 million respectively. The Bank earned a profit of TK. 84.70 million in the year 1985, compare to the 52.10 million in the year 1984.

NBL inaugurated a change when it substituted the prevalent austere and cold banking atmosphere with an intimate and warm one. The success of NBL is largely credited to its friendly co-operative approach, understanding the special Banking needs of each and every client and concern for their benefits and welfare. From the beginning the objectives of NBL was to increase capitalization, to maintain disciplined growth and high corporate ethics standard and enhance the health of shareholder. NBL is scattered all over the world consisting of 76 branches and 3 booths. In 1995, NBL acquired equity and management of Nepal Arab Bank Limited and in 1996 NBL opened a representative office in Myanmar.

Since the very beginning, the Bank exerted much emphasis on overseas operation and handled a sizeable quantum of homebound foreign remittance. With a strong sense in all business areas of commercial banking, NBL could foresee tremendous growth in home in homebound remittance from Bangladesh expatriates in U.S.A. and U.K., Middle East and different countries of the world. The Bank established extensive drawing arrangement network with Banks and Exchange Companies located in important countries of the world. Expatriates Bangladeshi wage earners residing in those countries can now easily remit their hard-earned money to the country with confidence, safety and speed. Consecutively NBL established a unique money remittance system with Western Union of USA for inbound and outbound remittance.

The year 2006 marked the addition of yet another golden stair in the chronicle of NBLs success story. Compared to 2005, Foreign exchange business of the Bank increased by 34.40% to Tk. 5186 crore, of which export, import and remittance business increased by 34.16%, 31.27% and 56.50% respectively. Total assets of the Bank stood at Tk. 4483 crore on 30.09.2006.

Our Bank invested 25% equity in Gulf Overseas Exchange Company LLC, a joint venture Exchange Company in Oman, operating since November, 1985 under the management of our Bank. The Bank received Riyal Omani 11875 equivalent to Tk.2.10 million as dividend for the year 2006.

A team of highly qualified and experienced professionals headed by the Managing Director of the Bank who has vast banking experience operates bank and at the top there is an efficient Board of Directors for making policies.

1.2 Overview of National Bank Limited

National Bank Limited is one of the leading private commercial bank having a spread network of 102 branches across Bangladesh and plans to open few more branches to cover the important commercial areas in Dhaka, Chittagong, Sylhet and other areas in 2008.

National Bank Limited has been licensed by the Government of Bangladesh as a Scheduled commercial bank in the private sector in pursuance of the policy of liberalization of banking and financial services and facilities in Bangladesh. In view of the above, the Bank within a period of 25 years of its operation achieved a remarkable success and met up capital adequacy requirement of Bangladesh Bank.

With a wide range of modern corporate and consumer financial products National Bank has been operating in Bangladesh since 1985. In 1997, the bank introduced automated branch banking system to increase efficiency and improve customer service. The bank is one of the leading banks which introduced first Credit Card in Bangladesh. The technology has been upgraded to manage the growth of the bank and meet the demands of our customers. ATMs now allow customers to retrieve 24x7 hours cash withdrawals. They are concentrating on retail banking, side by side to business banking, in order to improve their yield on advances and diversity credit risk. Profit orientation is encouraged at all levels. With customer focus, sincere efforts, new products innovation and total involvement of the human capital of the Bank they are determined to improve business and profitability and occupy its justified position in the forefront of the industry.

At present, NBL has been carrying on business through its 101 branches spread all over the country. Besides, the Bank has drawing arrangement with 415 correspondents in 75 countries of the world as well as with 32 overseas Exchange Companies. NBL was the first domestic bank to establish agency arrangement with the world famous Western Union in order to facilitate quick and safe remittance of the valuable foreign exchanges earned by the expatriate Bangladeshi nationals. NBL was also the first among domestic banks to introduce international Master Card in Bangladesh. In the meantime, NBL has also introduced the Visa Card and Power Card. The Bank has in its use the latest information technology services of SWIFT and REUTERS. NBL has been continuing its small credit programmed for disbursement of collateral free agricultural loans among the poor farmers of Barindra area in Rajshahi district for improving their lot. Alongside banking activities, NBL is actively involved in sports and games as well as in various Socio-Cultural activities.

Now NBL is on line to establish trade and communication with the Prime International banking companies of the world. As a result NBL will be able to build a strong root in international banking horizon. Bank has been drawing arrangement with well conversant money transfer service agency "Western Union". It has a full time arrangement for speedy transfer of money all over the world. Banking is not only a profit-oriented commercial institution but it has a public base and social commitment. Admitting this true NBL is going on with its diversified banking activities. NBL introduced National Bank Monthly Savings Scheme (NMS), Special Deposit Scheme, Consumer's Credit Scheme and NBL Housing Loan, NBL Small Business Loan, Small House Loan Scheme, Festival Small Business loan etc. to combine the people of lower and middle-income group. Inspired by its social obligation and commitment and responsibility, NBL has been running a School and College up to Class XII solely on its own guardianship. From the very inception, this institution has been maintaining a good track record of results at the SSC and HSC Examinations. Conducted by a well-educated and trained team of teachers, reputation of this institution has been increasing day-by-day as a result of their relentless and sincere endeavor.Transparency and accountability of a financial institution is reflected in its Annual Report containing its Balance Sheet and Profit & Loss Account. In recognition of this, NBL was awarded Crest in 1999 and 2000, and Certificate of Appreciation in 2001 by the Institute of Chartered Accountants of Bangladesh.National Bank Limited is a customer oriented financial institution. It remains dedicated to meet up with the ever growing expectations of the customer because at National Bank, customer is always at the center. 1.3 Vision of the National Bank Limited

Establishing ourselves firmly at home and abroad as a front representative bank Of Bangladesh by ensuring highest standard of clientele services though best application of modern information technology and making due contribution to the national economy is our cherished vision.1.4 Mission of the National Bank LimitedEfforts for expansion of our activities at home and abroad by adding new dimensions to our business strategy are being continued unabated. Alongside, we are also putting highest priority to cost control, transparency, accountability, good governance, improved clientele service as well as to our commitment to serve the society, through which we want to get closer and closer to the


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