final report

Table of Contents

Organaizational Part

History And Heritage 3

Operating Body………………………………………………………………………………………………………………………………..6

Vision Of The Bank…………………………………………………………………………………………………………………………..6

Mission Of The Bank………………………………………………………………………………………………………………………..6

Main Objectives 6

Organization organogram of NBL……………………………………………………………………………………………………7

Corporate Governance…………………………………………………………………………………………………………………..8

Board Of Directors And Comitees……………………………………………………………………………………………………8

Legal And Regulatory Compliance…………………………………………………………………………………………………8

Disclosure and Transparency…………………………………………………………………………………………………………8

Risk Management………………………………………………………………………………………………………………………….9

Reviews of Activities……………………………………………………………………………………………………………………..9

Functions Of NBL………………………………………………………………………………………………………………………….9

Porters Five Forces Model…………………………………………………………………………………………………………..13

PEST Analysis ………………………………………………………………………………………………………………………………16

SWOT analysis of National Bank Limited ………………………………………………………………………………………17

Project Part

Introduction…………………………………………………………………………………………………………………………………19

Objective Of The Study………………………………………………………………………………………………………………… 19

Significance of the study……………………………………………………………………………………………………………….20

Hypothesis…………………………………………………………………………………………………………………………………….20

Research Methodology…………………………………………………………………………………………………………………21

Limitations of the study…………………………………………………………………………………………………………………23

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Result Analysis……………………………………………………………………………………………………………………………….24

Frequency Analysis………………………………………………………………………………………………………………………24

Descriptive Statistics…………………………………………………………………………………………………………………….53

One Sample T-test………………………………………………………………………………………………………………………..58

Correlation Analysis……………………………………………………………………………………………………………………..62

Regression Analysis……………………………………………………………………………………………………………………..64

ANOVA………………………………………………………………………………………………………………………………………..66

The linear equation………………………………………………………………………………………………………………………67

Major Findings…………………………………………………………………………………………………………………………….68

Recommandation………………………………………………………………………………………………………………………..69

Conclusion…………………………………………………………………………………………………………………………………….70

Bibliography………………………………………………………………………………………………………………………………...71

Appendix………………………………………………………………………………………………………………………………………72

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Organization Part History and Heritage

National Bank Limited Limited has its prosperous past, glorious present, prospective future and under

processing projects and activities. Established as the first private sector bank fully owned by Bangladeshi

entrepreneurs, NBL has been flourishing as the largest private sector Bank with the passage of time after

facing many stress and strain. The members of the board of directors are creative businessmen and

leading industrialists of the country. To keep pace with time and in harmony with national and

international economic activities and for rendering all modern services, NBL, as a financial institution,

automated all its branches with computer networks in accordance with the competitive commercial

demand of time. Moreover, considering its forth-coming future, the infrastructure of the Bank has been

rearranging. The expectation of all class businessmen, entrepreneurs and general public is much more to

NBL. At present it has 145 branches under their branch network. In addition, its effective and diversified

approach to seize the market opportunities is going on as continuous process to accommodate new

customers by developing and expanding rural, SME financing and offshore banking facilities.

The emergence of National Bank Limited in the private sector was an important event in the Banking

arena of Bangladesh. When the nation was in the grip of severe recession, the government took the

farsighted decision to allow 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. From the very inception, it was the firm determination of National Bank Limited to play a vital

role in the national economy. National Bank Limited is determined to bring back the long forgotten

taste of banking services and flavors. National Bank Limited want to serve each one promptly and with a

sense of dedication and dignity.

The then President of the People's Republic of Bangladesh Justice Ahsanuddin Chowdhury inaugurated

the bank formally on March 28, 1983 but the first branch at 48, Dilkusha Commercial Area, Dhaka

started commercial operation on March 23, 1983. The 2nd Branch was opened on 11th May 1983 at

Khatungonj, Chittagong.

At present, National Bank Limited has been carrying on business through its total 167 service locations

(branches and Agri branches) spread all over the country. Since the very beginning, the bank has exerted

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much emphasis on overseas operations and handled a sizable quantum of home bound foreign remittance.

It has drawing arrangements with 415 correspondents in 75 countries of the world, as well as with 37

overseas Exchange Companies located in 13 countries. National Bank Limited was the first domestic

bank to establish agency arrangements 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.

This has meant that the expatriates can remit their hard-earned money to the country with much ease,

confidence, safety and speed.

National Bank Limited was also the first among domestic banks to introduce international Master Card

in Bangladesh. In the meantime, National Bank Limited has also introduced the Visa Card and Power

Card. The Bank has in its use the latest information technology services of SWIFT and REUTERS.

National Bank Limited has been continuing its small credit programmes for disbursement of collateral

free agricultural loans among the poor farmers of Barindra area in Rajshahi district for improving their

livelihood.

National Bank Limited focused on all key areas covering capital adequacy, maintaining good asset

quality, sound management, satisfactory earning and liquidity. As a consequence, it was possible to a

record growth of 175.51 percent with Tk. 8,809.40 million pre tax profit in the year under review over the

preceding year. The net profit after tax and provision stood at Tk. 6,860.34 million which was Tk.

2,070.47 million in the previous year registering a 231.34 percent rise. The total deposits increased to Tk.

102,471.83 million being 33.37 percent increase over the preceding year. Loans and advances stood at

Tk.92,003.56 million in the year under report which was Tk. 65,129.289 million representing 41.26

percent rise over the preceding year. Foreign trade stood at Tk. 144,255.00 million in 2010 compared to

Tk. 115,939.00 million, increased by 24.42 percent compared to that of the previous year. During 2010,

the bank handled inward remittance of Tk. 49,145.30 million, 10.73 percent higher than that of the

previous year. Return on Equity (ROE) registered a 77.84 percent rise over the preceding year.

National Bank Limited , has now acquired strength and expertise to support the banking needs of the

foreign investors National Bank Limited stepped into a new arena of business and opened its Off Shore

Banking Unit at Mohakhali to serve the wage earners and the foreign investors better than before.

Since its inception, the bank was aware of complying with Corporate Social Responsibility. In this

direction, we have remained associated with the development of education, healthcare and have

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sponsored sporting and cultural activities. During times of natural disasters like floods, cyclones,

landslides, we have extended our hand to mitigate the sufferings of victims. It established the National

Bank Limited Foundation in 1989 to remain involved with social welfare activities. The foundation runs

the National Bank Limited Public School & College at Moghbazar where present enrolment is 1140.

Besides awarding scholarship to the meritorious children of the employees, the bank has also extended

financial support for their education. It also provided financial assistance to the Asiatic Society of

Bangladesh at the time of their publication of Banglapedia and observance of 400 years of Dhaka City.

The Transparency and accountability of a financial institution are reflected in its Annual Report

containing its Balance Sheet and Profit & Loss Account. In recognition of this, National Bank Limited

was awarded Crest in 1999 and 2000, and Certificate of Appreciation in 2001 by the Institute of

Chartered Accountants of Bangladesh.

The bank has a strong team of highly qualified and experienced professionals, together with an efficient

Board of Directors who play a vital role in formulating and implementing policies.

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Operating Body

National Bank Limited is governed by a Board of Directors consisting of 11(eleven) members. The

corporate head quarter of the bank is located at Motijheel, Dhaka, Bangladesh, and the main

commercial center of the capital.

Vision of the Bank Efforts for expansion of our activities at home and abroad by adding new dimensions to our

banking services are being continued unabated. Alongside, we are also putting highest priority in

ensuring transparency, account ability, improved clientele service as well as to our commitment

to serve the society through which we want to get closer and closer to the people of all strata.

Winning an everlasting seat in the hearts of the people as a caring companion in uplifting the

national economic standard through continuous up gradation and diversification of our clientele

services in line with national and international requirements is the desired goal we want to reach

Mission of the Bank

Ensuring highest standard of clientele services through best application of latest information

technology, making due contribution to the national economy and establishing ourselves firmly

at home and abroad as a front ranking bank of the country are our cherished vision.

Main Objectives The main objectives of the bank are to provide all types of banking services to the doorsteps of

people. The bank participates in various socio-economic activities and also takes part in

implementation of various policies and program made by the government.

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Organaization organogram of NBL

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Corporate Governance

A sound corporate governance practice has consistently been followed in carrying out the operation of

National Bank Limited . The bank management is smoothly running the day-to-day activities of the bank

within the policy guidelines of the BOD and in accordance with the legal & regulatory framework of

different regulatory bodies of the country. The different aspects of corporate governance are given below:

Board of Directors& Committees

The board of Directors mainly deal with formulation of business policies, service regulations,

procurement policies, approval of large credit proposals, reschedule of loan, reemission of interest,

approval of the long term plan, annual budget and audited accounts of the bank. Audit committee reviews

the internal & external audit, financial reporting, corporate affairs and compliance matter. The Board

within the powers conferred upon them by the articles determines its functions and responsibilities. The

Board retains full and effective control over the bank, determines the strategies and objectives of the bank

and sets the principles for sound business practice.

Legal & regulatory compliance

National Bank Limited has been carrying out its activities in compliance with the legal and regulatory

requirement of Bangladesh Bank, Securities and Exchange Commission (SEC). The bank also ensures

compliance of Bank Company Act, 1991, Companies Act, 1994, Income Tax Ordinance, 1984,

Negotiable Instrument Act, 1881, other related laws, regulations and reporting requirements.

Disclosure & transparency

National Bank Limited follows a transparent policy in the decision making process and discloses all

material facts in the annual report and in the audited Balance Sheet, Profit and Loss Account and notes to

the financial statement. Besides, periodical reporting disclosures are made as per requirement of different

agencies

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Risk management National Bank Limited follows standard practice in dealing with credit risk, operational risk, market

risk, etc. within the approved policies of the BOD and in accordance with the guidelines with the

guidelines of Bangladesh Bank.

Reviews of activities

The Board of Directors consistently monitors and reviews the implementation of policies and

overall performance of the bank along with the performance of overseas outlets of the bank

Functions of NBL As a leading commercial bank there are many functions and activities of National Bank

Limited . The most basic functions of National Bank Limited can be briefly highlighted in

following explanation.

General Banking

Personal Banking

Agri Banking

Micro Credit

International Banking

Industrial Financing

Deposit & Credit Schemes

SME Banking

Foreign Currency A/C

Investment Bond

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General Banking Department

General Banking is formed with some sections such as:

Cash

Clearing

International Banking

These sections are dedicated to ensure fast and efficient service to the clients. General Banking

function is to ensure an efficient customer service system to nurture co-ordination among various

functional areas of the bank to structure guidelines in the light of the regulatory bodies

instructions especially those related to core risk management in National Bank Limited and to

ensure compliance of the legal obligations in executing banking business. GB department

provides everyday services to the customers; so it has to perform the core functions of a Bank. It

is kind of the rerouting point for all kinds of transaction of foreign exchange department and

credit department and itself. National Bank Limited gives more or less the same facilities to

their customer in this section like any other banks.

Foreign Exchange Department

Letter of Credit

Revocable L/C

Irrevocable, unconfirmed credit

Irrevocable, confirmed credit

Foreign Remittance

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SWIFT

National Bank Limited is a member of SWIFT (Society for Worldwide Inter-bank Financial

Telecommunication). SWIFT is a member owned co-operative, which provides a fast and

accurate communication network for financial transactions like Letters of Credit, Fund transfer

etc. By becoming a member of SWIFT, the bank has opened up possibilities for uninterrupted

connectivity with over 5,700 user institutions in 150 countries around the world.

Credit Department

Credit department is one of the most important parts in National Bank Limited as it involves a great

amount of risk and vastly connected with the outside world. By investing the fund to maximize the wealth

of the country, National Bank Limited adds value to its own. In addition, the main job of credit

department of National Bank Limited is to sanction, disburse and monitor any sanctioned loan and

advances. Credit department of every branch performs a lending risk analysis; both qualitative and

quantitative is used in this method. In this analysis, branch authority can able to know about the risk level

of any client. The different risk like business risk, supply risk, company risk and company‘s position risk,

legal risk can be measured through LRA. Credits in charge have good negotiation skills as well as have

cross selling ability which is very much beneficial to the bank. Some credit programs are given below:

Industrial Credit

Foreign Trade Finance

Trade and working Capital Loans

Agricultural Credit

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Offshore Banking Department

Offshore banking department is not actually a part of branch office; rather it is an independent section that

reports directly to the head office under the supervision of the branch manager. National Bank Limited

offers the following range of Offshore Banking services:-

Foreign Currency Deposits (Non Resident entities and NRBs),

Loans in Foreign Currencies,

Credit Facilities including Trade Financing,

Negotiation / Purchase of Export bill,

Discounting of Export Bills.

Corporate Treasury Services etc.

Porters Five Forces Analysis

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Figure : Porters Five Forces Model

Threat of new entrants

The sector offers a considerable barrier to new entrants due to the high capital required to establish a

new bank. As banking is professional services type required high creditability, strong brand presence

is the key obstacle for newcomers. Strict government regulation also plays an important role at this

issue. Since the government sets very high requirements to establish a bank not everyone would be

able to enter in this industry. So the risk of new entrants is low

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Bargaining power of buyers

Buyer concentration to firm concentration ratio: Bank industry is a high buyer concentration

industry, many people use bank service, such as deposit money, mortgage, loan, investment,

insurance and currency exchange. Many large bank exist in the country, such as Standard Chartered,

Citibank N A and HSBC including 28 local banks. Buyer now can easily get information; customer

can easily obtain information through Internet, they can easily compare the price and service. The

switching cost of this action is low. Many substitute product or service present in recent year, such as

currency exchange, insurance and loan. They mainly provided by other financial institution.

Considering the issues mentioned above we can draw conclusion by claiming that customers have a

high bargaining power.

Bargaining power of suppliers

Products and services suppliers like capital suppliers are usually many and do not have strong

bargain power. Nonetheless, as financial and banking industry requires specialized knowledge and

skills, high potential employees or talented staffs, banks tend to manage the issues by syndicating

among within the industry. Depositor also is capital supplier of bank, they will compare with other

financial product to see whether draw out capital or not. Computer equipment supplier: The

concentration ratio of computer is high, many companies use IBM, but it doesn‘t mean other

computer companies are not good, such as Sun Microsystems, Fujitsu and Hewlett-Pack also provide

similar computer equipment and solution. Credit Card supplier: Credit Card industry is a high

concentration ratio industry, VISA, Master Card and American Express is the most popular credit

card in the world. Although other organizations also release credit card system, such as Omnibus,

their market share in the world is much less than these three organizations. Moreover, these three

organizations brand name is louder than other organizations, so the switching cost from these

organizations to others may be too large. But almost all the banks have their own cards to provide

service. Having the factors in mind the bargaining power of suppliers is low in this industry.

Threats of substitute product

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Internet makes many organizations can use smaller amount of money relatively to provide similar even

same service, and the service charge become smaller. Customer will due to convenience, low cost and

high efficiency to change the service to other organization. Real-time money transfer (i.e. Western

Union), real-time payment (i.e. PayPal), currency exchange (i.e. Xe.com) and insurance, they through

Internet to provide a high quality but low service charge service. Considering the facts mentioned it

would be justified to say that there is a moderate threat of substitute.

Rivalry within the industry

There are many banks in the country, As of today there are 4 nationalized, 28 local 12 foreign

and 5 developmental banks currently operating in the country. Moreover; Due to technology

becomes improve; financial control become relaxed and the change of environment in the

society, competition between banks become violent and the maturity of financial market in the

country is very high. Banks have fight continuously to make profit, so the rivalry in the industry

is also very high

PEST Analysis

Political Though banks are not involved in the politics but the government controls the banks through

Bangladesh Bank. As the government changes the policies also change with it. Government‘s

recent decision to give permission to eshtablish new banks will have a great impact on the

industry.

Economical

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Monetary policy is also an important economic factor regarding the issue. As Bangladesh Bank

was flexible in this issue and allowed banks to slightly devaluate taka to get export

competitiveness was understandable. But it needs to be handled with more care as the

undervaluation process has been going out of control recently.

Social

As with the process of development Bangladesh is also moving forward. Now the usage of credit

has increased significantly. Banks are earning more and more revenue each year. On the contrary

the amount of deposit account is slowing down. People are not being able to save money as the

cost of living is increasing rapidly.

Technological

E-Banking is the trend in recent year; they provide similar or same service through internet.

ATM booth has become more popular than ever. These technological advantages have helped

significantly to develop the quality of the services of the banks. But due to the lack of power

supply from the grid the service quality is getting difficult to maintain.

SWOT Analysis of National Bank Limited

Strengths of National Bank Ltd.

A well-established bank having long experience over 30 years

the Bank has drawn arrangement with 415 correspondents in 75 countries of the world as well as with 32 overseas Exchange Companies

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Nationwide network of 167 branches.

first domestic bank to establish agency arrangement with the world famous Western Union

Work force strength nearly 2239, which include 1689 officers and executives and 550 staff..

Has strong customer base and customer support.

Weaknesses of National Bank Ltd.

High percentage of non-performing assets.

Greater involvement of Industrial Credit & Rural Credit.

Low performance of commercial import and export business

Customers‘ services is not up to the satisfactory level .

Opportunities of National Bank Ltd.

Improve customer services through adoption of modern technology

Increase business through innovation/launching new product

Expansion of business by using wide network of branches

Increase investment in commercial lending and money market operation

Expansion of dealing in foreign exchange business

Increase remittance business

Ensure proper investment of surplus fund

Major scope of expanding rural banking.

Threats of Natioanl Bank Ltd.

Highly competitive environment

Loan default culture

Small amount of interest income from some sector

Under interference of internal and external quarters

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Turn over a new recruits

Low level of earnings

.

Project PartIntroduction

The importance of financial intermediaries in the development of the overall economy of a

country cannot be described in short. From the inception of the civilization, banking sector

dominates the economic development of a country by mobilizing the savings of general people

and channeling those savings toward investment and economic development and growth. In our

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growing economy there are already a huge number of banks that are currently present in

Bangladesh, and providing more or less similar set of services, but the only thing that

differentiates these banks is how these banks do operate.. National Bank Limited is one of the

most promising baking institutions which are currently operating in Bangladesh. It is a

progressive commercial bank in Private sector and it creates new opportunities for its clients. It

contributes towards formation of national capital, growth of savings and investment in trade,

commerce and industrial sector. In order to stay competitive in the banking industry it is essential

for any company to operate efficiently. National Bank Limited needs to stay focus and

prioritize their customer needs and meet the expected demands of their current customers and

future potential customers.

Objective of the study

The objective of this study was to expose to the organizational work situation and the report

would be an end result of such organizational involvement. The primary objective of this report

was to induce an overall view on the efficiency level in general banking operations of National

Bank Ltd. The secondary objectives of this study would be the followings:

1. To get acquainted with different operational view of the bank.

2. To be familiarized with the products & services those are offered to the clients.

3. To know about the contribution at national development.

4. To identify the problems and weakness of the services provided by National Bank Ltd.

5. To suggest necessary initiatives to make improvement with the service quality of National

Bank Ltd.

6. To apply theoretical knowledge with practical situation.

7. To familiar with Banking environment, clients, working hours, values, conditions

And other things related to Bank.

8. To determine the factors that influences the choice of a Bank by the customers.

9. To identify the problems faced by the customers and the Bankers.

10. To examine the profitability and productivity of the Bank.

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Significance of the study

Bank is very aged institution that is contributing toward the development of any economy and is

delighted as a major service industry in the modern world. As being one of the underdeveloped

countries; the economy of our country has a lot left to be explored along with a lot of scope for

considerable improvement. This sector could be very handful to develop our socio-economic

condition to the next level. As an intermediary, a bank has the ability to mobilize the excess fund

from surplus sectors to those sectors which have the need for finance in order to promote sound

development of the economy. To do so banks obviously need funding; which they get from their

clients. Bank gets a significant portion of its funds from different types of accounts like savings

accounts, currents accounts, STD accounts, different kinds of deposit schemes, FDR accounts

etc. Nowadays,there are numerous banks providing similar set of services and the banks which

are efficient in its operation,becomes the ultimate choice for the clients. It is hence, very

important for the banks to keep their efficiency level in order to ensure the flow of funds from

both ends. Keeping the above mentioned factors in mind I have chosen Efficiency of National

Bank Ltd in its general banking operations. because I believe that this is one of the most

significant subject matter for any bank.

HypothesisFrom the beginning to end of my research work on Efficiency of National Bank Ltd in its general

banking operations, I will test my hypothesis through various correlated findings and judgments. My

hypothesis will be

Hypothesis (H): National Bank Ltd is Not efficient in its general banking operations.

Hypothesis (H1): National Bank Ltd is efficient in its general banking operations.

Research Methodology

Data collection method:

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Data will be collected using the “personal-contact” as well as telephonic interview.

There will be a structured questionnaire to survey the customers and the questions will not be

open ended questions. All the questions will be answered through using a 1 to 5 scale (5 =

highly agree, 4 = moderately agree, 3 = agree, 2 = moderately disagree, 1 =highly disagree)

because open ended questions takes long time to answer and valuable customers may not

give me sufficient time to give those answers. These may hamper my research work. I will

try to make such questionnaire those will be enough for my research work in a time saving

way.

Survey instrument:

In the study, the researcher will use a questionnaire to collect the data from the sample.

Structured questionnaire will be used in this research. Here the variables will be divided into

two categories:

Independent variable:

1. Motivational factors (Profit distribution,Goodwill)

2. Banking service (DD, TT, Pay Order, ATM)

3. Convenience (Wide range, Remote transaction availability, Remittance Network)

4. Workers productivity and Banks profitability..

5. Offered interest rate for loan and deposit.

6. Innovation in offering product and service.

7. Reputation and image of the Bank.

8. up to date facilities.

9. Knowledge of the employee.

10. Accessibility of the bank

Dependent variable: Efficiency of general banking operations of National Bank Ltd.

Data Collection

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The study will be conducted on the basis of both the primary and secondary sources of

information.

Primary data:

Primary data will be collected through questionnaire from the customers of National Bank

Bangladesh Limited. Information will be gathered through discussion with the employees of

the bank as well.

Secondary data:

Secondary source is collection of data from sources that were used for other study. The

secondary data will be collected from:

Annual Report of National Bank Bangladesh Limited.

Website of the bank www.nblbd.com

Newspaper and magazine.

Different article on banking sector of Bangladesh

Data analysis procedure:

The report will be analyzed using statistical software SPSS and Microsoft excel. Then the

data will be interpreted using the techniques such as:

ANOVA, Correlation, Regression, of dependent and independent variables etc.

Limitations of the Study

This study could have been improved but it was hindered by the following situations:

Limitation of time was one of the most important factors that shortened the present

study. Due to time limitation many aspects could not discussed in the present study.

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Confidentiality of data was another important barrier that was faced during the conduct

of this study. Every organization has their own secrecy that is not revealed to others. While

collecting data on National National Bank Limited , personnel did not disclose enough

information for the sake of confidentiality of the organization.

Rush hours and business was another reason that acts as an obstacle while gathering

data. It was really difficult to communicate with the customers due to the rush hours and

employees really could not help in the data collection because of customer handling pressure.

The findings of the report are based on only Foreign Exchange branch of National

Bank Limited . The results may not reflect the same for other branches of National Bank

Limited

Lack of experience in the banking sector has been another main constraint of this scope

of study. It was not within the researchers’ ability to fully understand and realize all the

operations of the bank and many of the strategies taken by the bank were often obscure to me.

Lack of theoretical knowledge regarding statistical works prevented the researcher from

further analysis and come up with more accurate conclusion.

At the time of conducting the survey, most of the clients were unable to understand the

questionnaire because all the questionnaires were in English. The researcher asked the

questions in Bangla and they just answered.

Result Analysis

This section will show the findings of the research survey.

Frequency Analysis

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General Information

This section of analysis will analyze how the respondents have answered to each question. This will help

in better understand the reaction of the respondents.

a)Gender:

Frequency Percent Cumulative Percent

Valid Male 79 66% 66%

Female 41 34% 100%

Total 120 100%

Male66%

Female34%

Fig: Gender

Among 100 respondents of the survey 66 respondents were male and 34 respondents were female.

Converting into percentage from the graph it can be clearly seen that 66% respondents are male and 34%

are female. So male customers come more to National Bank Limited than female customers. This may

be because this particular branch is locaetd at Motijhil,which is a commercial area,

b)Age:

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Valid 18-25 15 12.5% 12.5%

26-35 24 20% 32.5%

36-45 36 30% 62.5%

46-55 24 20% 82.5%

55+ 21 17.5% 100%

Total 120 100%

Age

18-2526-3536-4546-5555+

Fig: Age

As the drawn pie chart above show that in case of age, maximum number of my respondent is

from 36 to 45 age range which covers the most 30% of my pie chart. Age range of 18 to 25

years was in minimum contribution to the pie chart, they covered only 12.5%. So,it can be said

from here,that working class people are more interested in depositing money in this particular

branch .

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C)Duration of Involvement with Bank:


Valid <1 year 9 7.5% 7.5%

1-5 years 38 31.7% 39.2%

6-10 years 45 37.5% 76.7%

10-15 years 22 18.3% 95%

>15 years 6 5% 100%

Total 120 100%

Fig: Duration of Customer

In response of this issue among 120 respondents 7.50% people select they are engaged with bank for less

than 1 year, 31.70% people are engaged for 1-5 years, 37.50% people for 6-10 years, 18.30%people for

10-15 years and 5% people for more than 15 years.

So maximum respondents are related to this bank for 6-10 years. It can be easily assume that they are bit

more brand loyal and conservative one.

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<1 year 1-5 years 6-10 years 10-15 years >15 years

7.50%

31.70%37.50%

18.30%

5.00%

d)Education Level of Respondents:


Valid Post Graduate 9 7.5% 7.5%

Graduate 10 8.3% 15.8%

Below High School 30 25% 40.8%

SSC 32 26.7% 67.5%

HSC 39 32.5% 100%

Total 120 100%

Post Graduate Graduate Below High School

SSC HSC

7.50% 8.30%

25.00%26.70%

32.50%

Fig: Education Level

From the survey of 120 respondents about their education level 7.50% respondents are post graduate,

8.30% are graduate level pass, 25% respondents are below high school 26.70% are SSC pass and 32.50%

respondents are HSC pass.

Here in this graph it can be seen that highest number of depositors of National Bank Limited is only

HSC pass. So it can be said that not that much higher educated people are reserving their money in

National Bank Limited . Maximum number of depositors is medium educated.

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e)Occupation of Respondents:


Valid Public sector 17 14.2% 14.%

Private sector 50 41.7% 56%

Self employed 36 36% 86%

Student 6 5% 91%

Housewife 11 9.2% 100.0%

Total 120 100.%

Public sector Private sector Self employed Student Housewife

14.20%

41.70%

36.00%

5.00%

9.20%

Fig: Occupation

In another questionnaire of the survey the researcher was willing to know about the occupation of 120

respondents. Among them 14.20% people are working in public sector, 41.70% people are in private

sector, 36% people are self-employed, 5% are student and 9% are house wife.

Here it is observed that all about different occupational depositors are available in National Bank

Limited . Maximum numbers of depositors are working in private sectors and second position is for house

wife and third position for self-employed person. The noticeable matter is house wife are more reluctant

to deposit money in National Bank Limited . As this branch is situated in a commercial area,the people

who have businesses and offices around the branch are more interested in depositing money here

28 | P a g e

1.Motivation

a) Confidence in bank management of National Bank Bangladesh Limited:


Valid highly disagree 2 1.7% 1.7%

disagree 11 9.2% 10.8%

neutral 29 24.2% 35%

agree 48 40% 75%

highly agree 30 25% 100%

Total 120 100%

Fig: Confidence in bank management

According to the survey of 120 respondents only 1.7% respondents highly disagree, 9.20% respondents

disagree, 24.20% remain neutral, 40% people just agree and 25% people highly agree about the

confidence of them on National Bank Limited .

Here from the response it can be seen a pick in the curve under agree portion. So it can be said maximum

people have confidence on National Bank Limited .They have confidence in this bank, since it is the

first commercial bank in the private sector,so they assume that this bank has vast experience in banking

sector.

29 | P a g e

highly disagreedisagree

neutralagree

highly agree

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

1.70%

9.20%

24.20%

40.00%

25.00%

b) Prefer National Bank Limited because society has positive attitude towards it:


Valid highly disagree 1 .8% .8%

disagree 6 5% 5.8%

neutral 26 21.7% 27.5%

agree 44 36.7% 64.2%

highly agree 43 35.8% 100.%

Total 120 100.0

highly disagree

disagree

neutral

agree

highly agree

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00%

1%

5%

22%

37%

36%

Fig: . Social Positive attitude towards the bank

In this issue, among 120 respondents just .8% respondents said highly disagree, 5% said just disagree,

21.70%, remain in neutral position, 36.70% respondents said agree and 35.80% said highly agree.

So in term of society attitude and motivation here in graph it can be seen maximum respondents said

agree and highly agree. So here a positive view is visible about the bank. All about the bank position in a

respective stage in the society is showing here. They feel that the bank is contributing to the society. The

30 | P a g e

bank affect people’s well being in many ways for example, through employment and the services that

they provide.

c) Feel secured with deposit at National Bank Bangladesh Ltd. For its mature market position:



Disagree 5 4.2% 5.9%

Neutral 22 18.3% 24.2%

Agree 30 25% 49.2%

highly agree 61 50.8% 100.%

Total 100 100.0


neutralagree

highly agree

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

1.70% 4.20%

18.30% 25.00%

50.80%

Fig: Mature market position of the bank

In another similar sort of issue about the mature market position behind the reason for choosing National

Bank Limited Ltd among 120 respondents 1.70% people said highly disagree, 4.20% people just

disagree, 18.30% people remain neutral, 25% people said agree and the highest number of respondents

said highly agree.

So from the graph it can be seen an upward curve in highly agree portion. In consequence, a great positive

outlook over the bank in term of mature market position to the depositors can be found.The reason behind

31 | P a g e

this confidence is that in the past 30 years it has achieved a strong position in the market and also its

lower default rate is also helping the bank in gaining customers confident.

d) Comfortable with profit distribution policy of National Bank Ltd.:



disagree 26 21.7% 30%

neutral 44 36.7% 66.7%

agree 23 19.2% 85.8%

highly agree 17 14.2% 100%

Total 120 100%


neutralagree

highly agree

8.30%

21.70%

36.70%

19.20%

14.20%

Fig: Comfortable with profit distribution policy

Here in response regarding the perception and acceptability of profit distribution policy of National

Bank Limited , among 120 respondents 8 people highly disagree, 21.70% people only disagree, 36.70%

people remain neutral, 19.20% people just agree and 14.20% people highly agree.

So that it can be seen from the graph that maximum number of respondents remains neutral regarding

this,as they were confused

32 | P a g e

2.Bank Services

a) Banking service quality:


Valid Low quality 17 14.2% 14.2%

Not good quality 44 36.7% 50.8%

Neutral 31 25.8% 76.7%

Good quality 15 12.5% 89.2%

High quality 13 10.8% 100%

Total 120 100%

Low quality

Not good quality

Neutral

Good quality

High quality

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00%

14.20%

36.70%

25.80%

12.50%

10.80%

Fig: Banking Service Quality

In this subject among 120 respondents of the survey 10.80% respondents choose high quality , 12,50%

said good quality, 25.80% said neutral, 36.70% said not good quality and 14.20% respondents said low

quality.

33 | P a g e

So here in the concern of banking service of National Bank Limited Ltd maximum people choose not

good quality. This suggest that there is a gap exist between customer expectation and perception of

service quality. This doesn’t necessarily mean that the Bank is providing poor service but they just need

to enhance the level of their service compared to others that are serving in the same industry.

b) Branch environment:




Neutral 19 15.8% 76.6%



Total 120 100%

34 | P a g e

17.50%

43.30%

15.80%

15.70%

7.40%

Low qualityNot good qualityNeutralGood qualityHigh quality

Fig: Branch environment

According to the survey among 120 respondents 17.50% respondents choose Low quality, 43.30% said

not good quality, 15.70% said neutral, 15.8% good quality and 7.40% respondents said high quality.

So here in the concern of branch environment of National Bank Limited Ltd maximum people choose

not good quality. Most of the customers says the branch environment is low compared to other emerging

banks. They come to this bank because the location is convenient. If the bank concentrate more on branch

environment, they could attract more customers.

c) ATM service quality:


Valid Low quality 30 25% 25%


Neutral 27 22.5% 74.2%



35 | P a g e

Low qualityNot good quality

NeutralGood quality

High quality

25.00% 26.70%

22.50%22.50%

3.30%

Fig:ATM service quality

According to the survey among 120 respondents 25% respondents choose Low quality, 26.70% said not

good quality, 22.50% said neutral, 22.50% good quality and 3.30% respondents said high quality.

So here in the issue of ATM service quality of National Bank Limited Ltd maximum people choose not

good quality. The customers feel that,their should be more number of ATM booth.

d) Employee’s cooperation:



Not good quality 21 17.5% 25%

Neutral 17 14.2% 39.2%

Good quality 37 30.8% 70%

High quality 36 30% 100%

Total 120 100%

36 | P a g e

Low quality

Not good quality

Neutral

Good quality

High quality

7.50%

17.50%

14.20%

30.80%

30.00%

Fig: Employee cooperation

According to the survey among 120 respondents 7.50%respondents choose Low quality, 17.50% said not

good quality, 14.20% said neutral, 30.80% good quality and 30 respondents said high quality.

So here in the subject of employee cooperation of National Bank Limited Ltd maximum people choose

high quality. They said, employees are more willing to co-operate with the customers. Most customers

leave banks not because of terrible service or a horrible experience. They find new bank because

employees do not seem to care. Customers wants to be welcomed and appreciated

e) Online service quality:




Neutral 26 21.7% 71.7%



Total 120 100%

37 | P a g e


NeutralGood quality

High quality

19.20%

30.80%

21.70%

15.80%

12.50%

Fig: Online service quality

According to the survey among 120 respondents 19.20% respondents choose Low quality , 30.80% said

not good quality, 21.70% said neutral, 15.80% good quality and 12.50% respondents said high quality.

So again in the matter on online service quality maximum people said not good quality.NBL hasn’t yet

established a strong and reliable online service. The customers want more improved online service from

NBL,so that they don’t have to come to the bank physically

3. Conveniencea) Customers come to this bank because the bank location is

convenient:



disagree 7 5.8% 6.6%

neutral 23 19.2% 25.8%

agree 49 40.8% 66.7%


Total 120 100%

38 | P a g e

highly disagree disagree neutral agree highly agree0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

0.80%

5.80%

19.20%

40.80%

33.30%

Fig: Preference for location convenience

In this issue among 120 respondents of the survey only .80% respondents said highly disagree ,5.80%

said disagree, 19.20% said neutral,41% said agree and 33 respondents said highly agree.

So here from the responses anyone can easily came to know that location is a great vital factor for

choosing National Bank Bangladesh Ltd. Maximum people agree and highly agree with this issue. They

come to this bank because the location is close to their business residuals.

b) National Bank Limited has easier deposit and withdrawal facilities:



disagree 9 7.5% 9.2%

neutral 20 16.7% 25.8%

agree 48 40% 65.8%


Total 120 100%

39 | P a g e


neutralagree

highly agree

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

1.70%

7.50%

16.70%

40.00%

34.20%

Fig . Easier deposit and withdrawal facilities

In this matter among 120 respondents of the survey only 1.70% respondents said highly disagree , 7.50%

said disagree, 16.70% said neutral,40% said agree and 34.20% respondents said highly agree.

So here in the question of easier deposit and withdrawal facilities maximum people shows a positive

response. They finds making a transaction in NBL is easier and faster.

c) Customers prefer National Bank Limited for rural remote transaction facilities:



disagree 11 9.2% 11.7%

neutral 31 25.8% 37.5%

agree 45 37.5% 75%


Total 120 100%

40 | P a g e

2.50%9.20%

25.80%

37.50%

25.00%

Highly disagreeDisagreeNeutralAgreeHighly agree

Fig: Preference for rural remote transaction facilities

In this subject among 120 respondents of the survey only 2.50% respondents said highly disagree , 9.20%

said disagree, 25.80% said neutral, 38% said agree and 25% respondents said highly agree.

So here in the issue of remote transaction facilities of National Bank Limited maximum people agree with that and shows a higher positive responses.

Banks in developing countries often do not service rural areas well. The rapid advancements in communications technology, particularly that involving mobile communications has enabled NBL to access service to the remote rural areas.

d) National Bank Limited has simpler process and low service cost:

41 | P a g e


Valid highly disagree 6 5% 5%

disagree 9 7.5% 12.5%

neutral 23 19.2% 31.7%

agree 45 37.5% 69.2%


Total 120 100%

5%

7%

19%

38%

31%

highly disagreedisagreeneutralagreehighly agree

Fig: Preference for simpler process and low service cost

According to the survey of 120 respondents 5% respondents highly disagree, 8% respondents disagree,

19% remain neutral, 38% people just agree and 31% people highly agree about the perception of National

Bank Limited and its low service cost.

So here in maximum number of respondents show their positive responses about lower service cost of

National Bank Limited . The term service cost covers all charges and fees made by a bank to their

customers. They comes to this bank because they feel the bank charges lower compared to the other

banks that are serving in the same indrusty.

e) Remote transaction cost of National Bank Limited is low:

42 | P a g e


Valid disagree 9 7.5% 7.5%

neutral 37 30.8% 38.3%

agree 44 36.7% 75%


Total 120 100%

disagreeneutral

agreehighly agree

00.05

0.10.15

0.20.25

0.30.35

0.4

7.50%

30.80% 36.70%

25.00%

Fig: Preference for low remote transaction cost

In this matter, among 120 respondents, none said highly disagree, 7.50% said disagree, 30.80% said

neutral, 36.70% said agree and 25% respondents said highly agree.

So here in the matter of remote transaction cost of National Bank Limited maximum people agree with

that and shows a higher positive responses. They feel the remote transaction cost is lower compared to the

others that are serving in the same industry.

43 | P a g e

f) Customers prefer good customer relationship that customers have at National Bank Limited:



disagree 11 9.2% 10%

neutral 20 16.7% 26.7%

agree 58 48.3% 75.%

highly agree 30 25.% 100%

Total 120 100%

highly disagree disagree neutral agree highly agree

0.80%

9.20%16.70%

48.30%

25.00%

Fig: Preference for good customer relationship

Here among 120 respondents of the survey only .80% respondent said highly disagree , 9.20% said

disagree, 16.70% said neutral, 48.30% said agree and 25% respondents said highly agree.

44 | P a g e

So here in the subject of good relationship with National Bank Limited maximum people agree with that

and shows a higher positive responses. Good customer relationship must be explicitly managed if they are

to be successful. The customers feel that the bank is customer focused and they know how to value a

customer.

4. Efficiency

a) Employees are efficient:



disagree 20 16.7% 18.3%

neutral 21 17.5% 35.8%

agree 36 30% 65.8%


Total 120 100.0


5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

1.70%

16.70% 17.50%

30.00%

34.20%

Fig: Employees productivity

In this issue, among 120 respondents of the survey only 1.7%respondents said highly disagree, 16.7%

said disagree, 17.50% said neutral, 30% said agree and 34% respondents said highly agree.

45 | P a g e

So here in the issue of reliability the positive response of the respondents are visible in the graph. In

highly agree portion the graph goes up. They feel the employees are able to handle the assigned workload

that means, completing work on time with minimal errors.

b) Investment in National Bank Limited is profitable:



disagree 10 8.3% 14.2%

neutral 33 27.5% 41.7%

agree 41 34.2% 75.8%


Total 120 100


5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

5.80%

8.30%

27.50%

34.20%

24.20%

Fig: Investment is profitable.

According to the survey of 120 respondents 5.80% respondents highly disagree, 8.30% respondents

disagree, 27.50% remain neutral, 34.20% people just agree and 24.20% people highly agree about

investment in National Bank Limited is profitable.

46 | P a g e

So here in maximum number of respondents show their confidence on National Bank Limited .They feel

their investment is safe in NBL. Lower default rate is one of the major reason they invest in NBL.

c) National Bank offers best interest rate:



disagree 14 11.7% 12.5%

neutral 46 38.3% 50.8%

agree 39 32.5% 83.3%


Total 120 100%


neutralagree

highly agree

0.80%

11.70%

38.30%

32.50%

16.70%

Fig:Offers best interest rate

According to the survey of 120 respondents only .8%respondent highly disagree, 11.70% respondents

disagree, 38.30% remain neutral, 32.50% people just agree and 16.70% people highly agree about the

47 | P a g e

perception of National Bank Limited . So in question of best interest rate people chose to remain in

neutral position. They feel the interest rate provided by NBL is neither better nor worse.

d) National Bank Limited offers innovative product and service:



disagree 29 24.2% 25.9%

neutral 42 35% 60.8%

agree 29 24.2% 85%


Total 100 100.0

highly disagree disagree neutral agree highly agree

1.70%

24.20%

35.00%

24.20%

15.00%

Fig: Offers innovative product and service

Here, among 120 respondents of the survey only 1.7% respondents said highly disagree, 24.20% said

disagree, 35% said neutral, 24.20% said agree and 15% respondents said highly agree.

48 | P a g e

So here in the question of innovative product and service perception maximum respondents keep them

neutral position. They are currently okay with the product offering but they feel that NBL should apply

more technological innovation that is available in the leading banks like Standard Chartered bank etc.

e) The bank has good reputation and better image than its competitors:


Validhighly disagree 4 3.3% 3.3%

Disagree 15 12.5% 15.8%

neutral 39 32.5% 48.3%

agree 34 28.3% 76.6.%

highly agree 28 23..3% 100%

Total 100 100.%


5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

3.30%

12.50%

32.50%

28.30%

23.30%

Fig: Bank has good reputation

In this subject, among 120 respondents of the survey only 3.3% respondents said highly disagree, 12.50%

said disagree, 32.50% said neutral, 28.30% said agree and 23.30% respondents said highly agree.

49 | P a g e

So here in the issue of bank reputation people show a neutral stand regarding this matter. They feel as the

first private sector bank it has a good reputation but that can’t be compared be compared to some leading

banks like Standard Charted, HSBC etc.

f) National Bank has up to date facilities:


Valid disagree 12 10% 10%

neutral 27 22.5% 32.5%

agree 47 39.2% 71.7%


Total 120 100%

disagree

neutral

agree

highly agree

10%

23%

39%

28%

Fig:National bank has up to date facilities

In this topic, among 120 respondents of the survey none of the respondents said highly disagree, 10% said

disagree, 22.50% said neutral, 39.20% said agree and 28.30% respondents said highly agree.

50 | P a g e

So here in the question maximum people agree with that and shows a higher positive responses. 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.

g) Employees are skilled:



disagree 11 9.2% 12.5%

neutral 27 22.5% 35%

agree 41 34.2% 69.2%


Total 120 100%

3%9%

23%

34%

31%

highly disagreedisagreeneutralagreehighly agree

Fig: Employees are skilled

In this topic among 120 respondents of the survey only 3% respondents said highly disagree , 9 %said

disagree, 23% said neutral, 34% said agree and 31% respondents said highly agree.

51 | P a g e

So here in this matter maximum people agree with that and shows a higher positive responses. They

believe the employees in NBL holds strong analytical and interpersonal skill. They are capable and

trained enough to meet customers’ expectations

h) Banking service are available over telephone:


ValidLow quality 11 9.2% 9.2%


Neutral 27 22.5% 47.5%

Good quality 30 25% 73.3%


Total 120 100


NeutralGood quality

High quality

9.20%

15.80%

22.50%25.00% 26.70%

Fig: Service availability over telephone

According to the survey among 120 respondents 9.20% respondents choose Low quality , 15.80% said

not good quality, 22.50% said neutral, 25% good quality and 26.70% respondents said high quality.NBL

52 | P a g e

has enabled the customers to perform financial transactions over the telephone without the need to visit

bank.

Descriptive Statistics

Descriptive statistics include mean, standard deviation, minimum and maximum of the variables. Here the

basic descriptive statistics are shown for all the subjects and overall for the variables as well.

Table : Descriptive StatisticsMotivation

N Range

Minimum

Maximum

Mean Std. Deviation

Variance

1.Customers have confidence in bank management of National Bank Bangladesh Limited

120 4.00 1.00 5.00 3.7750 .98273 .966

2..Customers prefer National Bank Bangladesh Limited because Customers’ society has positive attitude towards it

120 4.00 1.00 5.00 4.0167 .92567 .857

3.Customers feel secure with Customers’ deposit at National Bank Bangladesh Ltd for its mature market position

120 4.00 1.00 5.00 4.1917 .98983 .980

4.Customers are comfortable with profit distribution policy of National bank ltd.

120 4.00 1.00 5.00 3.0917 1.14493 1.311

Valid N (listwise) 120

Mean values for factors 1, is close to for factor 2,3 and 4, mean values are around 4. People agree with

those factors more. So it can be said that among the motivational factors, people come to National Bank

Limited more because the bank has positive value in the society and also because of its strong established

position in the industry. The bank has vast experience in banking sector as one f the oldest privet sector

bank. The bank is contributing to the societies well being through providing service and employment

opportunity. The bank has a mature market position in the industry

Table : Descriptive Statistics

Bank Services

53 | P a g e

N Minimum Maximum Mean Std. Deviation Variance

1.Banking Service Quality 120 1.00 5.00 2.6917 1.186583 1.40798

2.Branch environment 120 1.00 5.00 2.5250 1.17368 1.401515

3.ATM service quality 120 1.00 5.00 2.5250 1.18791 1.383737

4.Employees cooperation 120 1.00 5.00 3.5833 1.28719 1.680404

5.Online service quality 120 1.00 5.00 2.7167 1.29110 1.642323


Among the bank services, Employees Co-operation was rated highest by the most respondents. The least

mean value belongs to branch environment and ATM service quality. The bank actually lacks in these

two factors and they have enough scope for improvement.

The bank needs to enhance the level of bank service in order to compete well in the industry. They should

also improve the branch environment if they are to attracts new customers. They also need to increase the

number of ATM booths. Amongst all the services employee cooperation was rated highest.NBL is yet to

establish a strong online service.

Table : Descriptive StatisticsConvenience

N Range Minimum

Maximum

Mean Std. Deviation

Variance

1.Customers come to this bank because the bank location is near

120 4.00 1.00 5.00 3.99 0.926545 0.8584

54 | P a g e

Customers’ business/residential 85

2.Customers prefer National Bank Bangladesh Ltd for easier deposit and withdrawal facilities

120 4.00 1.00 5.00 3.94 1.003227 1.006465

3.Customers prefer National Bank Bangladesh Ltd for rural remote transaction facilities

120 4.00 1.00 5.00 3.75 0.998737 0.997475

4.Customers choose National Bank Bangladesh Limited because of its simpler process and low service cost

120 4.00 1.00 5.00 3.81 1.116407 1.246364

5.Customers are in favor with remote transaction cost of National Bank Bangladesh Ltd

120 3.00 2.00 5.00 3.78 0.916515 0.84

6.Customers prefer good customer relationship that Customers have at National Bank Bangladesh Limited

120 4.00 1.00 5.00 3.87 0.928287 0.861717


Whether the customers come to this bank because of location convenience has the highest mean value 4,

with standard deviation value .92. So it can be said that among the convenience factors, location is the

most powerful factor. Other than this, all other factors have mean value over 3.75..This means most

people are positive regarding convenience factor. Location is a great vital factor for choosing National

Bank Bangladesh Ltd. They come to this bank because the location is close to their business residuals. .

They find making a transaction in NBL is easier and faster. They come to this bank because they feel the

bank charges lower compared to the other banks that are serving in the same industry. They feel the

remote transaction cost is lower compared to the others that are serving in the same industry. The

customers feel that the bank is customer focused and they know how to value a customer.

Table : Descriptive Statistics

55 | P a g e

EffeciencyN Rang

eMinimu

mMaximu

mMean Std.

DeviationVarianc

e

1.Employees are effecient 120 4.00 1.00 5.00 3.77 1.153431 1.330404

2.Investment in National Bank Ltd. Is profitable

120 4.00 1.00 5.00 3.52 0.947938 0.898586

3. .The bank offers the best interest rate for loan and deposit

120 4.00 1.00 5.00 3.26 1.050445 1.103434

4.The bank offers innovative product and services

120 4.00 1.00 5.00 3.6250

1.11568 1.245

5.The bank has good reputation and better image than its competitors

120 4.00 1.00 5.00 3.7 1.114641 1.242424

6.National Bank has up to date facilities and equipment

120 3.00 2.00 5.00 3.85 0.946818 0.896465

7.Workers of National Bank Ltd. Are skilled

120 4.00 1.00 5.00 3.81 1.070212 1.145354

8.Bank services are available over telephone.

120 4.00 1.00 5.00 3.41 1.303414 1.698889


In case of efficiency ,all of the factor have mean value around 3,that means most of the people more or

less positive regarding this factors. They feel the employees are able to handle the assigned workload that

means, completing work on time with minimal errors. They feel their investment is safe in NBL. Lower

default rate is one of the major reason they invest in NBL. They are currently okay with the product

56 | P a g e

offering but they feel that NBL should apply more technological innovation that are available in the

leading banks like Standard Chartered bank etc. They feel as the first private sector bank it has a good

reputation. The bank is equipped with up to date facilities. employees in NBL holds strong analytical and

interpersonal skill. NBL has enabled the customers to perform financial transactions over the telephone

without the need to visit bank

Combined descriptive statistics of variables:

In the following table, combined descriptive statistics are being provided. This means the averages of the

variables including the responses of all the subjects of each variable. The results are as follows:

Table : Combined Descriptive Statistics

Variable Name N Minimu

m

Maximu

m

Mean Std.

Deviation

Motivation 120 1.00 5.00 3.5880 .67367

Bank Service 120 1.00 5.00 2.8325 .84940

Convenience 120 1.00 5.00 3.8218 .57332

Effeciency 120 1.00 5.00 3.5425 1.082184


All the variables have the same number of observations with no values missing. The statistics above are based on the variables of the major hypothesis of the project

57 | P a g e

Independent Variables:

Motivation: From the 120 responses survey Mean calculated is 3.5880which means most of the

respondents agree with the selected motivational factors for choosing National Bank Limited Ltd. And

the standard deviation is .67367.Which means degree of variation is low.

Bank Services: From the 120 responses survey Mean calculated is 2.8325 which means most of the

respondents are neutral regarding the banking services provided by National Bank Limited . And the

standard deviation is .84940.Which means the degree of variation is low.The bank has a lot of scope for

improvement regarding bank services

Convenience: From the 120 responses survey Mean calculated is 3.8218which means most of the

respondents agree that the convenience of National Bank Limited brings them to this bank. And the

standard deviation is . .57332 which means the degree of variation is low.

Dependent Variables:

Effeciency: From the 120 responses survey Mean calculated is 3.5425which means most of the

respondents perceive National Bank Bangladesh Ltd as a real National bank. The standard deviation

1.082184 which means the degree of variation is moderate.

One Sample t-Test

58 | P a g e

In the one sample t- test the actual means of all the variables are tested against a mean of 3. The

Hypotheses of the tests are as follows:

H0: μ = 3 or the mean value of variable is 3.

H1: μ ≠ 3 or the mean value of the variable is not 3.

Null Hypothesis is rejected when p value< 0.05.

Taking this hypothesis, t-test is calculated for all the variables.

Test of mean for motivation

Here, actual mean of the variable Motivation is 3.588. the actual mean is tested against a mean of 3.

Hypothesis of the test is:

H0: μ = 3 or Population mean value of Motivation is 3.

H1: μ ≠ 3 or Population mean value of the Motivation is not 3.

Table: One-Sample Test

Test Value = 3

t df Sig. (2-tailed) Mean Difference

95% Confidence Interval of the

Difference

Lower Upper

Motivation 9.561 119 .000 .58800 .4662 .7098

From the above table it can be seen that the P value is 0.00, which is less than 0.05. Therefore it

can be concluded that at 95% confidence interval the null hypothesis is rejected and the Motivation mean

value 3 is rejected against the actual mean of 3.588.This can be concluded from that motivation does play

a role in bringing efficiency and motivation is positively related with efficiency. Greater motivation leads

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to greater efficiency. The motivation level of NBL is greater than average 3 means the level of

motivation is satisfactory

Test of mean for bank services

Here, actual mean of the Bank Services is 2.8325. The actual mean is tested against a mean of 3.


H0: μ = 3 or Population mean value of Bank Services is 3.

H1: μ ≠ 3 or Population mean value of Bank Services is not 3.


Test Value = 3



Difference

Lower Upper

Bank Services 6.600 119 .000 .8325 .3582 .6653

From the above table it can be seen that the P value is 0.00, which is less than 0.05. Therefore it can be

concluded that at 95% confidence interval the null hypothesis is rejected and the Bank Services mean

value 3 is rejected against the actual mean of 2.8325.There is strong evidence that Increase in the level of

bank services will bring efficiency in the organization too. Bank services is highly related to efficiency.

Here the mean for efficiency is less than average refers to that the bank service in NBL is not

satisfactory.NBL has more scope to work on bank service.

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Test of mean for convenience

Here, actual mean of the Convenience is 3.8217. The actual mean is tested against a mean of 3.


H0: μ = 3 or Population mean value of Convenience is 3.

H1: μ ≠ 3 or Population mean value of Convenience is not 3.


Test Value = 3

t Df Sig. (2-tailed) Mean Difference


Difference

Lower Upper

Convenience 15.701 119 .000 .82175 .7181 .9254

From the above table it can be seen that the P value is 0.00, which is less than 0.05. Therefore it can be

concluded that at 95% confidence interval the null hypothesis is rejected and the Convenience mean value

3 is rejected against the actual mean of 3.8217.That means convenience has positive effect on efficiency.

The means for convenience indicate that it is satisfactory.

Test of mean for Effeciency

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Here, actual mean of the Effeciency is 3.5425 . The actual mean is tested against a mean of 3. Hypothesis of the test is:

H0: μ = 3 or Population mean value of Effeciency is 3.

H1: μ ≠ 3 or Population mean value of Perception is not 3.


Test Value = 3



Difference

Lower Upper

Perception 5.885 119 .000 .61755 .4093 .8258

From the above table it can be seen that the P value is .000, which is less than 0.05. Therefore it can be

concluded that at 95% confidence interval the null hypothesis is rejected and the Perception mean value 3

is rejected against the actual mean of 3.617555.The mean 3.617555 indicate that efficiency is

positive .The bank is efficient in its general banking segment.

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Correlation Analysis

This section of analysis will analyze whether the variables are correlated among themselves or not. There

are 3 independent variables and 1 dependent variable.

For the hypothesis tests, hypothesis will be

H0: There is no correlation between the variables.

H1: There is correlation between the variables.

Taking the level of significance alpha, α value is assumed 0.01. (α=0.01)

Here reject the Null Hypothesis when p-value< 0.01 and accept the alternative hypothesis.

Correlations

Motivation Convenience BankServices Effeciency

Motivation Pearson Correlation 1 .988(**) .945(**) .986(**)

Sig. (2-tailed) .000 .000 .000

N 100 100 100 100

Convenience Pearson Correlation .988(**) 1 .938(**) .984(**)

Sig. (2-tailed) .000 .000 .000

N 100 100 100 100

BankServices Pearson Correlation .945(**) .938(**) 1 .970(**)

Sig. (2-tailed) .000 .000 .000

N 100 100 100 100

Effeciency Pearson Correlation .986(**) .984(**) .970(**) 1

Sig. (2-tailed) .000 .000 .000

N 100 100 100 100

** Correlation is significant at the 0.01 level (2-tailed).

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.

1. Motivation and efficiency:

The Pearson Correlation value is .986, this is an average relation among the variables. The relation is

positive. So these two variables are expected to move towards the same direction. To generalize the result

for the whole population, the hypothesis testing was done using 2 tailed significance of correlation, p-

value. Here the p-value = 0.00<0.01. As per the decision rule, Null hypothesis is rejected and alternative

hypothesis is accepted. The conclusion is that Motivation and effeciency are correlated to each other.

2. Motivation and Convenience:

The Pearson Correlation value is .988, is an average relation among the variables.. These two variables

are expected to move towards the same direction. To generalize the result for the whole population, the

hypothesis testing was done using 2 tailed significance of correlation, p- value. Here the p-value =

0.00>0.01. As per the decision rule, Null hypothesis is be rejected. The conclusion is that Motivation and

Convenience are correlated.

3. Motivation and bank services:

The Pearson Correlation value is .945, this is average relation among the variables. The relation is


for the whole population, the hypothesis testing was made using 2 tailed significance of correlation, p-

value. Here the p-value = 0.00> 0.01. As per the decision rule, Null hypothesis can be rejected. The

conclusion is that Motivation and Bank Services are correlated to each other.

4. Efficiency and Convenience

The Pearson Correlation value is .984, this is average correlation among the variables. The relation is



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value. Here the p-value = 0.00>0.01. As per the decision rule, Null hypothesis can be rejected. The

conclusion is that Efficiency and Convenience are correlated to each other.

5. Efficiency and bank services

The Pearson Correlation value is .970, this is a average correlation among the variables. The relation is


for the whole population, the hypothesis testing to be done using 2 tailed significance of correlation, p-

value. Here the p-value = 0.00>0.01. As per the decision rule, Null hypothesis can be rejected. The

conclusion is that Efficiency and Bank Services are correlated to each other.

6. Convenience and Bank Services

The Pearson Correlation value is .938, this is a below average relation among the variables. The relation is



value. Here the p-value = 0.00<0.01. As per the decision rule, Null hypothesis is rejected and alternative

hypothesis is accepted. The conclusion is that Convenience and Bank Services are correlated to each

other.

Regression Analysis

For the regression analysis the dependent variable is Effeciency and the independent variables are

Motivation, Convenience, Bank Services.

Equation of the Regression Model:

Y = ß0 + β1X1 + β2X2 + β3X3 + εI

From the above model:

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Dependent variable Y= Effeciency of National Bank Ltd.

ß0= Intercept

εI = Error

The independent variables are as follows:

X1 = Motivation

X2 = Convenience

X3 = Bank Services

The hypothesis to be tested for this model is given below-

Null Hypothesis, Ho: βi= 0

Alternative Hypothesis, H1: βi ≠ 0

Model Summary

Model R R SquareAdjusted R

SquareStd. Error of the Estimate

1 .442a) .196 .160 .97530

a Predictors: (Constant), Convenience, BankServices, Motivation

Here the R square value is .196. This means that the 19.6%. variation in the dependent variable can be

predicted by the independent variables.

ANOVA

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For the ANOVA test,

Null Hypothesis, Ho: Model Test is not adequate

Alternative Hypothesis, H1: Model Test is adequate.


Here reject the Null Hypothesis when p-value< 0.05 and accept the alternative hypothesis.

ANOVA(b)

Model Sum of

Squares df Mean Square F Sig.

1 Regression 26.388 3 5.278 5.548 .000(a)

Residual 108.437 116 .951

Total 134.825 119

a Predictors: (Constant), Convenience, BankServices, Motivation

b Dependent Variable: Efficiency

From the ANOVA table it can be seen that the P value which in this case is the significant value is 0.000

which is less than .05 (.000< .05). Therefore the null hypothesis is rejected which is the model is not

adequate and the alternative hypothesis is accepted which is the model is adequate.

Coefficients(a)

Model

Unstandardized Coefficients

Standardized Coefficients T Sig.

B Std. Error Beta B Std. Error

1 (Constant) -.277 .805 -.3440 .000

Motivation .416 .182 .263 2.285 .000

BankServices -.105 .114 -.084 -.923 .000

Convenience .632 .165 .340 3.817 .000

a Dependent Variable: Efficiency

The linear equation:

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Effeciency (Y) = -.008+ (.416X Motivation(X1)) + (.632X Convenience (X2)) -(.105 X Bank Services

(X3))

ALL the variables motivation,bank services and convenience have positive coefficient. So if these

variables go towards higher order, the efficiency will also have positive turn.

T-test for coefficients:

After making the linear regression, t- test of the coefficients is to be conducted to test whether the

independent variables actually have any impact on the dependent variable.

For the test hypothesis will be as follows

Null Hypothesis, Ho: βi= 0 (Variable Xi is not affecting Y).

Alternative Hypothesis, H1: βi≠0 (Variable Xi is affecting Y).


Here reject the Null Hypothesis when p-value< 0.05 and accept the alternative hypothesis

Motivation: For Motivation, the p value is .000 which is less than .05 that mean the null

hypothesis is rejected which is Ho: βi= 0 therefore accepting the alternative hypothesis is

H1: βi≠0. The dependent variable Efficiency is affected by the independent variable

Motivation.

Convenience: For Conveience, the p value is .00 which is less than .05 that mean the null

hypothesis is rejected which is Ho: βi= 0 therefore accepting the alternative hypothesis is

H1: βi≠0. The dependent variable efficiency is affected by the independent variable

Convenience.

Bank Services: For Bank Services, the p value is .000 which is less than .05 that mean

the null hypothesis is rejected, which is Ho: βi= 0. The dependent variable efficiency is n

affected by the independent variable Bank Services.

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Major Findings

1. After doing all the statistical analysis, the researcher has summarized it and found that the

the efficiency of National Bank Limited is depended on other independent variables and

those are – Motivation,Convenience and Bank Services. Considering the original

hypothesis, which are as follows:

Null Hypothesis, H0 = National Bank Ltd. Is not efficient in its general banking practice.

Alternative Hypothesis, H1 = National Bank Ltd is efficient in its general banking practice

As the research work has proved that efficiency of National Bank Limited is depended on

other independent variables and as the findings from most of the independent variables are

positive, Null hypothesis is rejected and accept the alternative hypothesis “H1 = National

Bank is efficient in its general banking practice as true.

2. Customers of the bank are mostly attracted to this bank because they prefer this bank

because of its positive attitude among the societies. Also people find this bank reliable as it

has strong established market in the banking sector.

3. Often customers feel that the National Bank Limited is perfect for their money storage

necessity because they feel secured by the huge size and established image of National

Bank Limited . Since its conception, the bank has experienced immense success in the

industry. Now the bank has grown very large and general people identify this bank as a

reliable place to keep their money. Its large size has earned the belief that the bank will not

default easily. This makes the depositors feel secured.

4. Employees can play a great role in bringing depositors to the bank. If employees can

convince the customers the benefits they will get from the bank, then they can retain those

customers.

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5. The ease of reaching to the bank or location convenience also induces customers to the

bank. So how wisely the bank chooses its location has an impact on the depositors. The

bank already has over 167 branches around the country. More branches are going to be

opened inside and outside the capital. Availability of the bank branch has made more

depositors come to this bank.

6. Human resource in the banking sector is a powerful weapon. Not all organization can

achieve a great human resource. National Bank Limited already has a large pool of

human resource, which is very loyal to the bank. The employee retention rate is really high

and also their level of commitment is satisfactory.

RecommendationsFrom the analysis of Banking efficiency against various independent variables, the factors that need

emphasized focus by the bank authority have been identified. The factors that the customers relate as

most important with overall efficiency are the areas where the banking authority must focus to

improve the level of excellence and sustain that level. The most important factors are described

below- Employees should be professional all the time while providing quality & efficient service to

the clients. One of the main reasons in professionalism of employees bring confidence to the

customers. They feel more comfortable to do business with the bank. National Bank Limited . needs

to review its services/products on regular basis and update according to the market demand because it

makes a significant impression on the clients. When National Bank Limited will come with their

innovative product and services then they will be able to enter in to new market segment. Employees

should be trained to improve their performance & put more value on recognizing the clients. If the

employees are trained well enough then they will deliver the services in a quality way that will help to

bring customer satisfaction. There is no designated customer service manager in the foreign exchange

branch of National bank ltd.. Usually the front desk officer acts as the customer service provider.

Though according to the research he is doing a fine job but appointing a full-time customer service

manager would be recommended

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ConclusionAt the end it can be conclude with that, efficiency is evident because without efficiency

there is no business. A little inefficiency can send more business away from a company .

The constructs investigated in this study all received positive marks by the respondents as

factors that would lead to efficiency. These results lead to suggestions for bank managers

to consider as to how they might improve efficiency in today‘s competitive banking

environment. This report tries to unravel the level of efficiency with the general banking

department of National Bank limited to exploit the strength and weaknesses. This study

has primarily approached to identify the internal strengths and weaknesses of the general

banking division from different perspectives. Since the results of this study are based on

NBL‘s consumers‘ perceptions only, future research should investigate the congruence

between consumers‘ and service providers‘ perceptions. This will help the industry to

better understand whether both consumers and banks have the same perceptions

regarding issues relevant to efficiency. While this study found that efficiency alone is not

effective in building customer loyalty, future research may attempt to explore the

―unexplored‖ constructs that consumers would value most. For example, are consumers

more concerned about the convenience issue such as location of branches, or the use of

technology? Or are consumers more focused on how bank staff delivers services? Given

the importance of employee competence, future research should also examine the impact

of employees‘ behavior that could affect efficiency. The report has clearly identified the

areas of improvement for the general banking division of National Bank limited. Now,

the more NBL focuses on the improvement of these factors, the better efficiency it can

achieve.

Bibliography

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i. National Bank Bangladesh Limited (2012). Annual Report

ii. www.nblbd.com

iii. http://en.wikipedia.org/wiki/National_Bank_(Bangladesh)

iv. Newbold, P.Carlson, W.and Throne,B.Sixth ed.Statistics for business and economics.

v. Gareth R.Jones.9th ed. Theory of Strategic Management.

vi. Robbins,S,P. and Judge,A,T.9TH ED.Organaizational Behaviour.

Appendix

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http://en.wikipedia.org/wiki/National_Bank_(Bangladesh)

Survey Questionnaire

Dear Respondent,

I, a student of North South University (NSU), am conducting a survey as a course requirement of Internship program for BBA. For the purpose, your co-operation is highly needed and appreciated. However, this information is only for academic purpose and will not be disclosed elsewhere

Section: A (Please tick the correct answer)

1. Gender: Male Female

2. Age: 18-25 26-35 36-45 46-55 56+

3. Education level: Below High School SSC HSC Undergraduate Post graduate

4, Occupation: Public sector Private sector Self employed Student Housewife

5. For how long are you dealing with National Bank Ltd?

Less than 1 year 1-5 Years 6-10 Years 10-15 Years Above 15 years

Section:B

Please tick the answers on the scale as follows:

5 = highly agree, 4 = moderately agree, 3 = neutral, 2 = moderately disagree, 1 =highly disagree

1. Motivation: 5 4 3 2 1a) ) You have confidence in bank management of National Bank Limitedd) You prefer National Bank Bangladesh Limited because your society has positive attitude towards itc) You feel secure with your deposit at National Bank Ltd for its mature market positiond You are comfortable with profit distribution policy of National Bank Ltd.

Please tick the answers on the quality scale, such as

5=High quality, 4= Good quality, 3=Neutral, 2= Not good quality, 1= Low quality

2. Bank Services 5 4 3 2 1a) Banking Service Quality b) Branch environmentc) ATM service qualityd) Employees cooperation

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“Efficiency of general banking operations of National Bank Ltd.”

e) Online service quality



3. Convenience: 5 4 3 2 1a) You come to this bank because the bank location is near your business/residentialb) You prefer National Bank Ltd for easier deposit and withdrawal facilities.c) You prefer National Bank Ltd for rural remote transaction facilitiesd) You choose National Bank Limited because of its simpler process and low service coste) You are in favor with remote transaction cost of national Bank Ltdf) You prefer good customer relationship that you have at National Bank Bangladesh Ltd.



4. Efficiency 5 4 3 2 1a) Employees are efficient.

b) Investment in National Bank Ltd. Is profitable.c) The bank offers the best interest rate for deposit and loand) The bank offers innovative product and services.e) The Bank has good reputation and better image than its competitors. f) National Bank has up to date facilities and equipmentsg) Workers of National Bank ltd. Are skilled.h) Bank services are available over the telephone

Thank you for your cooperation!!

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final report

Documents

national bank limitedwas

largest private sector

national bank limited

percent bangladeshi

national economy

pest analysis

correlation analysis

regression analysis