final prime bank
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CHAPTER-ONE INTRODUCTION1.1 Origin of the report:This internship report is generated under the academic supervision of prof. DR Anisur Rahman, Dept. of Marketing, University of Dhaka and organizational supervision of Mr. Mohammad Abdul Matin and Mr. Masum Mahmud Baqui principal officer, credit division of prime bank limited. This report is prepared as the partial requirement of MBA degree. The topic is Evaluation of customer services of prime bank limited based on Motijheel branch The main objective of doing this report is to have a practical experience of the real life aspects of the management that we have studied in the academic course. To prepare this report, I have selected and got opportunity to work as an intern in the reported and well known leading Prime Bank Limited.
1.2 Methodology:The Methodology of the report is inductive. The report is based on both primary and secondary sources of information. Officers and employees have provided the primary sources of information. Further more the secondary sources of information are the different annual reports kept in the Bank.
1.3 Key Parts of the report:We are in new dynamic millennium of 21st century. It is very interesting to observe how organizations are involved to shape them for a new arena. Especially banks are directly in action to upgrade the economic position of countries every time. We all know that bank is a service-oriented organization. It renders banking services to the customers. No doubt customer service contributes vastly and rapidly to the development of business as well as the economy. In this regard customer service of Prime Bank Limited has been taken as subject of observation of the report. 1
As a service-oriented organization PBL is serving its customer through its different departments; these are General Banking Department which includes Accounts, Remittance and Clearing Section, Credit & Advance Department, CCS Department, Foreign Exchange Department. PBL is providing the facilities of different types of accounts to its customers such as Current Account, Savings Account, Fixed Account. Beside these they are offering Several Deposit Schemes; are, CSS, MBDS, ESC, SDS. Customers are provided the facilities for issuing Pay order, Demand Draft, Telegraphic Transfer in Remittance Section of General Banking. Credit Department serves customers extending their helping hand for their productive investment. It provides loan of different types; importantly consumer credit, corporate credit, small and medium enterprise, venture capital, house building financing etc. More over the department gives financial advisory services to its valued clients. Consumers Credit Scheme Section gives loan ranges from TK 20,000/- to TK 3,00,000/for the period of one year to three years at 15% interest rate. Foreign Exchange means exchange foreign currency between two countries. This Department is facilitating Export, Import, and helping in remitting money from country to country. The major part of its activities is L/C (letter of Credit) Oriented, which facilitates the import & export of the country. It offers different types of L/C. Back-to-Back L/C is one of those and is most popular one. This department provides post import finance such as PAD, LTR as well as finance in case of export at two stages such as Pre Shipment Credit, Post Shipment Credit.
1.3 Benefits to the Institution through this report:
The Institution will get an overall picture on Customer Service of the bank through this report. It may take steps to overcome its shortages or weakness; at the same time it may explore the opportunities it does have.
1.4 Broad Objective and Specific ObjectivesThe main objective of the study is the evaluation of the different types of customer services provided by the Prime Bank Ltd. To achieve the main objectives, the study covers the following specific objectives. To analyze the service procedure of Prime Bank Ltd. To know the banking operation. To know the area of General Credit. To know the process of loan disbursement. To know the documents of credit. To know the import & Export finance. To know the process of loan collection
1.5 ScopeThe Present Study is an attempt to evaluate the customer services of the Bank, Therefore, in order to observation of the three sectors of the bank, namely, General Banking, Credit, Foreign Exchange were covered. For this, the presentation has been organized into General Banking Department. Credit Department. Foreign Exchange Department.
In spite of having the wholehearted effort, there were some limitations, which acted as a barrier to conduct the program and for doing an empirical research work. The limitations were : The study was limited only to the Prime Bank Limited. Another Problem was time constraints. The duration of my internship Program was only three months. But this allocated time is not enough for a complete and fruitful study. The Bank was a busy one having heavy rush of people, whom officers need to deal with. So allocation of time for an internee is very much tough for the officers of the bank. I was not assigned for a specific task in each day. So I was not able to understand banking activities deeply. Bank is a sophisticate business sector. So bank do not interested to provide me confidential data. As a result in my report there is a confidential data limitation.
BRIEF HITORY OF BANK2.1 Evolution of the Word Bank:The word bank originated from Italian word Banca. Banca means long tool. In ancient time Italian Jews merchant used to do business of lending money by sitting on the tools. It is assumed that the word bank derived from the word Banca. To meet the expense of war of 1171 one type credit certificate was launched in Italy at an interest rate of 5% it was called as Monte in Italian language and Banke in German language then German language was widely used in Italy. As a result the word Banke gradually changed to the word Banca from which the word Bank originated.
2.2 The Emergence of Modern Banking:The linguistics and etymology suggests an interesting story about banking origins. Both the old French word Banque and the Italian word Banca were used centuries ago to mean a bench or moneychangers table. This describes quite well what historian have observed concerning the first bankers, who lived more than 2000 years ago. They were money changers, situated usually at table or in a small shop in the commercial district, aiding travellers who came to town by exchanging foreign coins for local money or discounting commercial notes for a fee in order to supply merchants with working capital. The first bankers probably used their own capital to fund their activities, but it was not long before the idea of attracting deposit and securing temporary loans from wealthy customers became a source of bank funding. Loans were then made to merchants shippers, and landowners at rates of interests low as 6percent per annum to as high as 48 percent a month for the riskiest ventures! Most of the early bank was Greek in origin.
The banking industry gradually spread outward from the classical civilizations of Greece and Rome into northern and western Europe. The early bank in Europe was places for safe keeping of valuable items (such as gold and silver bullion) as people came to fear loss of their asset due to war, theft, or expropriation by government. when colonies were established in North and South America , old world world. banking practice were transferred to the new
2.3 Development of Banking in Bangladesh:Since early British rule, the history of banking in Bangladesh territory shows that the traditional trade-networks developed before the banks invaded rural areas. And the banking services have slowly flourished in Bangladesh territory. Even today, in many places, moneylenders provide credit services. Small shopkeepers and businessman use informal credit at high interest rate. Traditional mahajan,s money lending business gradually declined due to expansion of bank and the micro credit programs of NGO,s Cooperative banks and government agencies.
Public Sector Banks:During the liberation war in 1971, the economic, political, and social system including the banking system was severally damaged. At that time, all big and medium financial institutions except two small banks had their head office in the west Pakistan. The non-beagle owners and managers of the financial establishments that operated in East Pakistan had abandoned them. After independence in 1971, the new government had to take over management and ownership of all such institutions. The banks Nationalization Order 1972 was issued to nationalize banks and financial institutions (except those incorporated abroad) in order to control chaos in the field of ownership, party bureaucracy, the intelligentsia, and pressure group. By several orders six nationalized commercial banks (NCB,s) : one industrial band (BSB) 6
one agricultural bank(BKB) one industrial development financial institution(BSRS) were created .
The banks and financial institutions which originated during the Pakistan period and were merged, and renamed and functioning after independence of Bangladesh. In the year 1983, the government allowed private sector to participate in the banking business. The public Bank and the Uttara Bank were denationalized in 1985, due to non profitability. This action reduced the number of NCB,S to four. Such restructuring of public sector banks was in order to play their role in industry, agriculture, export, self employment etc.
Private commercial banks:Taking advantage of the liberalization policy of the government regarding participation of private sector in the banking business, a number of private banks were established in and af