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An Evaluation of the Activities of RFC (Retail Finance center)

A Study on The City Bank Limited

Date of Submission: 27th January, 2011

Submitted to
Mohammed Masum Iqbal
Assistant professor
Department of Business Administration
Daffodil International University

Submitted by
Md. Azizur Rahaman
Id no-071-11-1586
Batch: 16th
Program: BBA (Finance and Marketing)
Department of Business Administration
Daffodil International University

Letter of Transmittal

January 27, 2011

Mohammed Masum Iqbal


Assistant Professor
Department of Business Administration
Daffodil International University
Subject: Submission of the Internship Report.
Sir,
I would like to submit the Internship report, which was done on The City Bank
Ltd. The internship program has given me the opportunity to combine my
theoretical knowledge with practical experiences.
The report contains a descriptive study on evaluation on the activities of RFC.I
provided the findings which I have derived from my exploration in this field.
Your valuable advice, suggestion and guidance have helped me to prepare the
report with ease. I will be very glad, if you kindly accept this report.
Yours truly,
MD. Azizur Rahaaman
Id no: 071-11-1586

Acknowledgement

First of all I present my due rewards to all mighty Allah who give me the opportunity to
prepare this report. In preparing this report considerable amount of thinking and
informational inputs from various sources were involved. I express my sincere gratitude
to everyone who contributed towards making this report possible. Major contributions
were received from officials at The City Bank Ltd.
First of all I would like to especially thanks to the authorities of The City bank Ltd
because they give me the prized opportunity to do my internship at their prestigious
organization. The experience and knowledge gained at The City Bank Ltd helped me
immensely to address and understand all the elements related to my report, which I
otherwise would not have understood so well.

My Sincere gratitude goes to my honorable teacher Mohammed Masum Iqbal for his
absolute support, co-operation and encouragement that he extended to me from
the first day.

I would like to specially thank M. A. Quiyum, manager of asset operations of RFC in The
City Bank Ltd. In spite of having a very busy schedule time, he made sure in every way
that I acquire the best possible exposure and knowledge during my tenure as an intern.
Last but not the least I would like to thank the respondents of my survey. The report will
not have been possible without their valuable inputs.

DECLARATION
I hereby declare that this report is a presentation of my original research work and that it
has not been submitted anywhere for any word. Whenever contribution of others are
involved, every effort is made of indicate this clearly, with due reference to the literature,
and acknowledgement of collaborative research and discussion.

The work has done under the guidance of Mohammed Masum Iqbal, at the Daffodil
International University.

Md. Azizur Rahaman


Id no: 071-11-1586
Department of Business Administration
Daffodil International University

In my capacity as supervisor of the candidates report, I certify that the above statements
are true to the best of my knowledge.

Mohammed Masum Iqbal


Report Supervisor
Department of Business Administration
Daffodil International University

Date:

Executive summary
Retail banks are raising their game across the board and across the globe. Retail banks are
developing and adapting their distribution channels to meet the needs of increasingly
demanding customers: branches are more attractive and better designed; Web sites are
more secure; and call centers offer quicker solutions to customers problems. One of the
most remarkable success stories of last 50 years banking industry globally has been the
conceptualization and innovative execution of banking with individual customers, their
friends & families. The industry has termed it as Retail Banking or Personal Banking or
Consumer Banking; and it has now - at a very rapid pace become the major revenue
line for most of the top banks in the world. City Bank, too, recently has started its
journey in Retail Banking. City Retail - add a little city to your life is the new brandmantra, the pay-off line for City Retail. In this report, the study tries to discuss about the
different retail products of the City Bank Ltd and also try to discuss about the important
functions of the retail finance center.
The present study focuses on evaluation of the activities of RFC (retail finance center).

Table of contents
Particulars

Page no

Part-01
Introduction

Objectives of the study

10

Methodology
Limitations and Significance of the study
Part-02 (Organization part)

11
12

MISSION, VISION AND OBJECTIVE 13


OF CBL
Organogram Of CBL
Services of CBL

14
15

Functional division of CBL


SWOT Analysis of RFC of CBL

15
16-17

Retail products of The City Bank Ltd


Part-03 (Learning part)
Activities of RFC

18-28

Credit Procedure for Retail Lending

32
32

Major Parts of RFC

29

Application Process by Branch and Sales

34

Application Process by RFC

35

Credit Decision

36

Disbursement process

38

Retail loan process flow at City Bank


Discussion and analyses
Part-04

39
40-70

Problems
Recommendations
Conclusions

71
72
73

Bibliography

74

Questionnaire

75-76

Part-01

Introduction
The City Bank Limited (CBL) is the first private sector bank in Bangladesh. The bank
has been operating since 1983 with an authorized capital of Tk.1.75 billon. The noble
intention behind starting this bank was to bring about qualitative changes in the sphere of
Banking and Financial Management. Today the City Bank serves its customers at home
and abroad with 83 branches spread over the country and about three hundred oversea
correspondences covering the entire major cities and business center of the world. The
CBL was incorporated as a public limited company with limited liability on the 14 th
March, 1983 and its formal inauguration was on March 27, 1983 under company act,
1913 in Bangladesh with the primary objective to carry on all kinds of banking business.
The City Bank Ltd. recently has started its journey in Retail Banking. More than 700
staffs have been trained so far on the vital concepts of service excellence and sales. Retail
banking refers to banking in which banking institutions execute transactions directly with
consumers, rather than corporations or other banks. Services offered include: savings and
transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.
Here this report is based on RFC of The City Bank Ltd. So first of all, this study will try
to know about RFC (Retail finance center). Retail Finance Center is the centralized retail
risk management and lending operation body under Retail Banking Division. So this
study will try to discuss about the process, activities of the RFC of The City Bank Ltd
and also try to evaluate the effectiveness of RFC.

Objectives of the study


The main objective of this report is to evaluate the activities of RFC. The specific
objectives of the report are as follows.
1) To explain how the RFC of the City Bank Ltd operates;
2) To describe the procedure of RFC of The City Bank Ltd;
3) To find out how

RFC of The City Bank Ltd maintains a comprehensive

guideline for managing retail credit risk and lending operations risk;
4) To measure the performance of RFC of the City Bank Limited;
5) To identify the problems related to the operations of RFC of The City Bank
Limited;
6) To make some recommendations to solve the problems.

10

Methodology
1) Research type: Conclusive research.
2) Sources of data:
A) Primary source: Managers and Sales officers.
B) Secondary source: Website of the City Bank, Brochures and publications of CBL
products, Annual report of the year 2009 of CBL

3) Target Population: BSSM (Bank Sales Managers) and all of the officers who are
related with sales)
4) Sample size: 20
5) Sampling technique: Convenience sampling applied to collect the data.
6) Data collection methods:
a. Face to face interviewing technique was applied to collect the primary
data from the bank sales manager and sales officers with a questionnaire.

11

Limitations:

The time limitation was one of the major problems for this report.

Some of the relevant papers and documents were strictly prohibited.

The employees are very busy with their jobs, which lead a little time to consult
with them.

Relevant data and document collection were difficult due to the organization
confidentiality.

Most of the source has no capability to response the questions on my


questionnaire.

Significance of the Study


This study has been demonstrated about the quality about the retail products, functions,
management and sources evaluation on the RFC of the City Bank Ltd. This reason, this
study will help the management of the City Bank Ltd is to determine the problem and
prospect of RFC of the City Bank Ltd.

Part-02
12

Organization part
The main objective of the study is to determine activities of RFC. So first of all, the study
tries to describe about the City Bank Ltd.
MISSION, VISION AND OBJECTIVE OF CBL
Mission of CBL

To contribute to the socioeconomic development of the country,

To attain highest level of customer satisfaction through extension of services by


dedicated and motivated team of professionals,

To maintain continuous growth of market share ensuring Quality,

To maximize banks profits by ensuring its steady growth,

To maintain the high moral and ethical standards,

To nurture an enabling environment where innovativeness and performance is


rewarded

Vision of CBL
To be the leading bank in the country with best practices and highest social commitment

Retail Banking Strategy of the City Bank Ltd


The City Bank Ltd. recently has started its journey in Retail Banking. More than 700
staffs have been trained so far on the vital concepts of service excellence and sales. In the
product side ATM fleet has been launched, Debit card and credit has been issued, SMS
Banking has been offered, 3 new deposit products have been introduced, manifold in the
endeavor to build a Retail Banking brand namely City Retail Happiness Counts.

13

Board of Directors

Executive
Committee

Managing Directors
Deputy Managing
Directors

Audit
Committee

Chief Advisor

HEAD OFFICE
Company Secretary

Audit & Inspection Division


Central Accounts Division
Credit Division
Marketing, Development &
General Banking Division

General Services Division


Human Resources Division
International Division
Information Technology
Division
Research & Planning
Division
Treasury & Money Market
Division
Board Secretariat & Share
Department
Cost Control Department
Law & Recovery
Department
Card Cell
Figure 1: Organogram of CBL

14

Services of CBL
The CBL concentrates the following categories of banking services

General banking,
Retail banking
Loans and Advances,
-SME (Small & Medium Enterprises)
-Corporate
International Trade and Foreign Exchange,
-Export
-Import
-Remittance
Online Banking Services,
Debit Card and Duel Currency Credit Card Facilities.

FUNCTIONAL DIVISIONS OF CBL


The Bank accomplishes its functions through different functional divisions/ departments.
The divisions/departments along with their major functions are listed below:
Financial Division
Financial planning, budget prepartion and monitoring
Payment of salary
Controlling inter-branch transaction
Disbursement of bills
Preparation of financial reports and annual reports
Preparation/Review of returns and statements
Maintenance of Provident Fund, Gratuity, Superannuation Fund
Reconcilliation

Credit and risk management


Loan administration
Loan disbursement
Project evaluation

15

Processing and approving credit proposals of the branches


Documentation, CIB (Credit InformationBureau) report etc
Arranging different credit facilities
Providing related statements to the Bangladesh Bank and other departments
Human Resource Division (HRD)
Recruiting

Training and development


Compensation, employee benefit, leave and service rules program and upgration
Placement and performance appraisal of employees
Preparing related reports
Reporting to the Executive Committee/ Board on related matters
Promotional campaign and press release

Information Technology (IT) Department


Software development

Network management and expansion


Software and Hardware management
Member banks reconcilliation
Data entry and processing
Procurement of hardware and maintenance
Branches Control & Inspection Division
Controlling different functions of the branches and serch for location for expansion

Conducting internal audit and inspection both regularly and suddenly


Ensuring compliance with Bangladesh Bank (BB), monitoring BBs inspection and
external audit reports
Retail Division
ATM card, Credit and system operation and maintenance

SWIFT operation
Credit Card Operation (Proposed)
16

Customer and vendor relationship

SWOT Analysis of RFC of CBL


Strenghts
Experienced and efficient management team and human resource

Quaity products and services


Company reputation and goodwill
Large number of Branches all over the country
weakness
Lack of adequate marketing (advertising and promotion) effort

Lack of full scale automation


Lack of training facilities of the City Bank Ltd.
opportunities
Regulatory environment favoring private sector development

Value addition in products and services


Increasing purchasng power of people
Increasing trend in international business
Threats
Frequent changes of banking rules by the Central Bank

Market pressure for lowering of lending rate


National and global political unrest
Default culture of credit

17

Retail products of The City Bank Ltd


City Bank is a major player in Bangladesh wholesale banking industry to offer the full
scope of innovative, customized solutions and services. We offer service at the highest
level. Their focus is not on short-term profit, but on building long-term relationships and
standing by our clients whenever they need us. They have a unique business focus on
enabling project financing, trade, investment and supply chain financing for clients. They
are committed to using our country wide network to facilitate our clients' growing trade
and investment flows and supply chain financing needs across our business footprint.
Now the study tries to describe the retail products of The City Bank Ltd.
A) Deposit
1) Current Account
2) Savings Account
3) City Onayash
4) City Shomridhdhi
5) City Projonmo
6) City Ichchapurun
B) FDR
C) Loan
1) City Drive
2) City Solution
D) Card
1) Debit Card
2) VISA Electron
18

E) Credit Card
1) VISA Classic Local
2) VISA Classic Dual
3) VISA Gold Local
4) VISA Gold Dual

City drive
Owning a car is no longer a luxury. Car for your family is now a matter of fulfilling a
necessity. Appreciating that basic need, City Bank introduces City Drive, a tailor-made
auto loan scheme for individuals.
Features
1) Loan amount ranging from Tk. 300,000 to Tk. 20,00,000
2) Car financing up to 90% of reconditioned or new vehicle price
3) Lower interest rate & upto 100% financing for loan against cash security
4) Loan tenor 12 to 60 months
5) No hidden charges
6) Competitive interest rate
7) Loan processing fee 1% of loan amount
Eligibility
1) Age: 22 to 60 years
2) Experience: Salaried executive total 1 year including 6 months with current
employer
3) Experience: Business person/propofessional 1 year
4) Monthly income: Minimum Tk. 30,000

19

City solution
Dream Vacation? Son's admission to a foreign university? Medical treatment? Daughter's
wedding? House renovation?
Whatever the occasion or requirement may be, City Solution - any personal loan from
City Bank - is there to solve all your problems and to fulfill all your dreams. You can
access this facility from our selected branches across the country.
Features
1) Loan amount ranging from Tk. 50,000 to Tk. 1000,000
2) Loan tenor 12 to 60 months
3) No guarantor required for the loan amount up to Tk. 3 lac
4) No hidden charges
5) Competitive interest rate
6) Processing fee 1.5%
Eligibility
1) Age: 22 to 60 years
2) Experience: Salaried executive total 1 year including 6 months with current
employer
3) Experience: Business person 2 years
4) Experience: Professional 1 year

20

5) Minimum

monthly

income:

Salaried

executive

Tk.

15,000

self employed Tk. 25,000 and business person Tk. 30,000


City express
City Express Cash is a fully secured and revolving facility for any legitimate purpose.
The security for the loan should be ideally CBL FDR. Bank would finance against clients
CBL FDR or other banks/NBFIs security.
City Express Loan is a fully secured and terminating (EMI Based) loan facility for any
legitimate purpose. Bank would finance against clients CBL FDR or other bank
FDR/NBFIs security.
This is any purpose secured loan for any legitimate purpose.
Features
1) Minimum loan amount Tk. 50,000 & Maximum 90% of the Present Value of CBL
FDR or any other security
2) Quick processing
3) Minimum documentation
4) Loan tenor 12 to 60 months
5) No guarantor required
6) No hidden charges
Processing Fees
For express cash, 0.5% of approved limit
For Express Loan, following slab wise fee will be applicable

Eligibility
Age: 18 +
Must be Bangladeshi
Any eligible individual, who will provide the cash security

21

Current account
Our current account meets the needs of individual and commercial customers through our
schedule benefit.
Interest Rate: Nil
Customer Benefit:
1) Cheque-book facility
2) Opportunity to apply for - safe deposit locker facility
3) Collect foreign remittance in both T.C. & Taka draft
Transfer of fund from one branch to another by
1) Demand Draft
2) Mail Transfer
3) Telegraphic Transfer
4) Transfer of fund on Standing Instruction Arrangement
5) Collection of cheques through Clearing House.
6) Online banking service.
Savings account
It is a sound savings for retail customer. We give the major facilities and services to our
customer through 84 branches allover in Bangladesh with our skilled manpower.
Interest Rate : 4.00
Customer Benefit:
a) Cheque-book facility
b) Opportunity to apply for - safe deposit locker facility
c) Utility payment service
d) Collect foreign remittance in both T.C. & Taka draft.
Transfer of fund from one branch to another by

22

1) Demand Draft
2) Mail Transfer
3) Telegraphic Transfer
e) Transfer of fund on Standing Instruction Arrangement
f) Collection of cheques through Clearing House

City Onayash
City Onayash - earn easy on your savings account, earn profit every month!
City Onayash is a unique kind of savings account which calculates interest on your daily
balance and pays interest to you every month.
It is a major departure from the conventional savings account available in the market. All
such accounts calculate interest on the average or lowest balance of the month, while City
Onayash does on daily product basis. Not only that, while those conventional savings
accounts pays interest only twice a year - in December and June - City Onayash pays it to
you every month. Happiness at each month end!
Eligibility:
1) Age: At least 18 years
2) Nationality: Bangladeshi
Availability:
All 84 of City Bank branches spread across the country.
What you need to do:
Just fill up the City Onayash account opening form and hand it over to our branch staff.
That's it! Enjoy saving in a unique way!
Special Feature:
1) Withdraw and deposit cash as you wish - without at all having your monthly
interest earning eligibility.
2) No hidden or undisclosed fees or charges or profit-cutting
3) Interest forfeiture rules of a common conventional savings account do not apply
here. So, stay tension-free-100%
4) Every month's interest earning goes into your account automatically. What better
way to take care of you family's recurring monthly expenses?
Interest Rate: 3.00
23

City Shomridhdhi
City Shomridhdhi - A unique offer from City Bank
City Shomridhdhi is an exceptional DPS product that is distincity more attractive than the
prevalent DPS products in the market. You receive a hefty sum at the end of the term
against your monthly deposit of small installments. It's a perfect way to secure your
financial future!
Features
1) No initial deposit required
2) Monthly installment deposit ranges from Tk. 500 to Tk. 20,000
3) Flexible tenor of 3, 5, 7 and 10 years
City Projonmo

City Projonmo financial safety for your future generations backed by complete
immense protection!
City Projonmo is a unique monthly deposit scheme that you open for your kids to
safeguard their future against all uncertainties and risks. As a guardian of the child you
can open this account which builds great & unmatchable savings for you over the years.
By the time your child is past his or her school age, there is this sufficient cash in your
hand to take care of his / her higher education, marriage or other such large expenses.
However, the most interesting part of this scheme is the full insurance protection that you
automatically enjoy. This simply means, in case of death or total physical collapse of the
parent or guardian, the bank will pay the full value of the scheme for the full term no
matter in reality how many months or years have been actually completed by you.

24

City Ichchapurun
City Ichchapurun great opportunity to earn against your savings every month!
This product allows you to earn interest and enjoy interest every month that accrues in
your fixed deposit account, no matter what the term of the deposit is. It helps make your
financial planning more disciplined, and your life more organized. While your fixed
deposit remains untouched and well-kept for future, you keep on getting the profit on a
monthly basis. What better way to take care of your monthly recurring expenses like
childrens education or school fees, house tutors remuneration, utility bill payments,
saving money in some DPS scheme?
CITY Visa Electron Debit Card - By your side, round the clock
Now comes the Visa Debit Card from City Bank. Your life, therefore, becomes hasslefree and safe; and it is Visa Electron branded, which makes you the proud owner of a
meaningful plastic.
Features:
1) Cash withdrawal from 500+ Visa ATMs 24/7/365 all over the country
2) Shop and dine at hundreds of merchant Visa outlets all over the country
3) Balance enquiry
4) PIN Change
5) Mini statement
6) Cash withdrawal @ Taka 12 per transaction at 583 DBBL ATMs
7) Cash withdrawal @ Taka 10 per transaction at 110 Q-cash network ATMs
Eligibility:
If you are an individual and have a savings, current or STD account in CBL, you are
eligible avail this card. Just drop in any nearby CBL branch, collect an application form
and submit duly filled up form. Within shortest time you will get the card delivered at
your mailing address or at your designated branch.

25

Visa local classic


This is a local Visa Credit Card which is valid only in Bangladesh.
It can only be used in local currency (BDT) within the country. This type of credit card
has a limit ranging from BDT 10,000 to BDT 49,999. This type of card has designed for
medium earner category customers.
Usage
Local Classic/Silver Card (For Domestic use only)
Limit
Local Classic/Silver Card

BDT 10,000 BDT 49,999

Visa classic dual


This is basically one plastic that has dual options to make transaction in two currencies.
Its acceptance jurisdiction is in country and outside country in BDT and USD
respectively. Classic dual is for the medium earner category customers. Its credit limit is
USD 100 to 1000 and BDT 10,000 to BDT 49,999.
Usage
Dual Classic/Silver Card (For both International & Domestic use)
Limit
Dual Classic/Silver Card BDT 10,000 BDT 49,999 + US$ 500 USS$ 1,999

Visa gold local


This type of card is taka card of which acceptance jurisdiction is only in Bangladesh and
transaction currency is BDT. The differences between these two cards are higher credit
limit than classic card. Credit limit of Visa Gold card is ranging from BDT 50,000 to
BDT 5, 00,000. This type of card has been designed for the higher earner category
customers.
Usage
Local Gold Card (For Domestic use only)
Limit
Local Gold Card

BDT 50,000 BDT 500,000

26

Visa gold dual

This is a high value dual card remaining other features same with classic dual. Gold dual
is also for the higher earner category customers and its credit limit is USD 1,001 to 4000
and BDT 50,000 to BDT 500,000. A secured dual cards limit will be maximum USD
28,000 against lien on RFCD or ERQ account.
Usage
Dual Gold Card (For both International & Domestic use)
Limit
Dual Gold Card

BDT 50,000 - BDT 500,000 + US$ 2,000 US$ 3,000

Credit Cards:

The American Express Credit Card


The American Express Gold Credit Card.

Corporate Cards:

The American Express Corporate Card


The American Express Gold Corporate Card.

The American Express Credit Card

Your American Express Credit Card gives you the following benefits:

Complimentary companion Mercedes Benz coach return tickets from Dhaka to


Cox's Bazaar on Baghdad Express
Complimentary companion tickets for entry & all rides for Fantasy Kingdom and
Water Kingdom
6% cash back at Agora Superstores & Nandan Megashops
Travel Emergency & Medical Assistance abroad*
Double Benefit City Shield & All Accident Insurance

27

* Available only for American Express Credit Cardmember Dual Currency

The American Express Gold Credit Card

Your American Express Gold Credit Card gives you the following benefits:

Complimentary companion return ticket from Dhaka to Kolkata on Jet Airways


Complimentary buffet at The Westin Dhaka round the year
Complimentary access to the City Bank American Express lounge at Zia airport
Complimentary access to countrys first Fast Track channel at Zia airport
immigration
6% cash back at Agora Superstores & Nandan Megashops
Travel Emergency & Medical Assistance abroad
Double Benefit City Shield & All Accident Insurance

28

Part-03
Learning part
Activities of RFC

This study finds that RFC deals with four retail products of The City Bank Ltd. Other
retail lending products of this bank are maintained by all branches of The City Bank Ltd.
1) City solution
2) City drive
3) City express (cash and load)
4) Credit cards ( specially American Express credit cards)
RFC has to manage some risk to maintain their operations efficiently and effectively. This
study try to analyze what types of risk RFC manage to maintained their operations
efficiently and effectively.
Risks:
Credit Risk or Default Risk
Operation Risk
Market Risk (commodity, interest rate, currency risk)
Incapacity to manage
Rewards:
Higher spread & profitability
Long term relationship with consumer
Small ticket size leads lower risk
Brand visibility

29

Cross selling opportunity


Key Credit Risk:
Identification Risk:
o Fake ID or Income Document (TIN, Bank Statement )
o Imprudent KYC
o Tracing Risk (rented house without fixed phone)
Risk Management Tools :
Communicating with issuing banks
Communicating with family members & employers
CPV report
Income Assessment Risk:
Inflated Bank Statement and inflated turnover

Overstated salary certificate or letter of introduction

Risk Management Tools:

Income Validation Process

Credit Check

Debt Burden Ratio ( Proportion of debt over monthly income)

Average balance in the bank statement

Bank Statement Assessment

Communicating with HR to verify salary

30

Guarantors Risk:
Fake Guarantee
Guarantor is not aware of loan amount
Risk Management Tools:
Contact Point Verification
Communicating with guarantor and checking whether he is willing to stand as
guarantor of applied loan amount
Documentation Risk:

Fake bank statement and ID documents submission

Fake application submission

Collection Risk:
Applicant of remote area
Instable business
Not pay master
Defaulter of other bank
Risk Management Tools:
Not encouraging credit facility in outside branch command area
Checking the existing EMI payment and if required ensuring confidential
credit report from facility providing banks

31

CIB report
Dedicated collection team

Credit Procedure for Retail Lending


Purpose of Credit Procedure Manual for Retail Lending:
To manage the credit risks associated with the product
To ensure specific risk management tools, standard asset operation process
and quality retail loan portfolio
To ensure unique credit practice for risk management and operation of retail
lending
What is retail finance center?
Retail Finance Center is the centralized retail risk management and lending operation
body under Retail Banking Division.
Why Retail Finance Centre

Supporting business growth and ensuring capacity to manage the business


momentum
Implementing core credit process and managing credit risks
Minimizing operation and documentation risk products
Ensuring portfolio quality

Major Parts of RFC


The total RFC can be divided into four teams which are

32

Risk Assessment Team will underwrite the applications


Asset Operation Team will manage loan disbursement and documentation
Collection Team- will pursue the delinquent customer to manage portfolio
MIS Team will manage identification risk, CPV and generate loan MIS

Income and ID Documents


Photograph and business card
Photo ID/Voter ID/ Driving license/ Copy of Passport
Bank Statement for last 6 months
Copy of TIN related doc
Letter of Introduction (LOI) from applicants employer or salary certificate or
pay slip along with major information like joining date, job status and salary
break up
For business person copy of Trade license/Memorandum of
Articles/Memorandum of Association
For professionals, copy of professional certificate
Relationship between branch & RFC
1) Supportive but not compromising

Credit Process of Retail Finance


Target Customers
Salaried Executive:
Businessperson:
Self Employed:

33

Non Target Customers


CBL Negative listed individuals
Journalist of reasonably lower level & non reputed publications & Lawyers
Employees of the firm which has a poor repayment history in business loan
with us
Employees of un reputed Proprietorship & Partnership Firms
Politicians & Individuals having political affinity
Travel agents and C & F agents of lower level
Defense officials below Major level
Public Figures and media personality

Application Process by Branch and Sales


Customer completely fills-up the loan application pack (LAP) and drops it to the
sources
Respective Manager of sourcing channels will take extra measures to check
whether the application form is fully filled up
Managers of sourcing channel will verify customer signature in the application
form, mark original seen in the photocopied documents before sending the
LAP to RFC

34

Managers of sourcing channel will fulfill the documentation checklist attached in


the LAP (Loan Application Pack) through branch
Fresh applications from all sources will be forwarded to credit MIS (RFC)
through document tracker

Application Process by RFC


RFC MIS Officer will receive the applications and input the LAP information in
the daily MIS
MIS officer will put unique serial or tracking number on the application and hand
over the applications to CPV agents for verification
MIS officer will distribute the LAPs among the analysts
MIS will send daily loan status report to sourcing channels via e-mail
MIS officer will send back the LAPs to the source as and when advised by credit
analyst
Analyst will pre-screen the LAP and if any discrepancy is found will
send back to source for further review
Credit Analyst will analyze whether application meets PPG criteria,
documents requirement and prudential regulations of Bangladesh Bank
Credit analyst will perform de-duplication and negative check list, prepare
approval sheet
Credit analyst can return the LAP back to source for any document deficiency
and credit analyst can send any query or ask for any clarification from source

35

Credit Manager/ Manager RFC/HORFC/HOPA/HORB/DMD (Business)/ MD


will approve or decline the applications as per delegation of lending authority
(DLA).

Credit Decision
The Credit Analysts will assess the income of the applicant based on the
income assessment guideline.
Credit Manager reviews the documents to come to an approval/decline
decision.
However a Credit Analyst may also decide to defer an application back to the
source or hold prior to make any approve/decline decision.

Factors that Decide Approval of Facility:


Informative Loan KYC
Satisfactory income reflection or credit flows
DBR
Residential status and other income sources
Social and business profile of the applicant
Existing loan repayment behavior
Satisfactory CIB and CPV

36

Faster Assessment and approval at RFC

Major Frequent Omissions (FOS):

Incomplete loan application and documentation

Loan KYC is not properly filled in

No signature verification or document attestation

Using fluid in the LAP

Front cover of the LAP is not fulfilled (account IC, ID )

No branch name, RMs Name and date in loan application

No waiver request

37

Contact Point Verification (CPV)


CPV report authenticates applicant's all personal information provided to the bank
at the time of applying
Third party agents conducts the CPV on behalf of the Bank
Branches outside CPV agents coverage, will do the CPV

Disbursement process

Step 1

All the charge documents are duly signed by the


applicant (Signature of the customer in the LAP and
charge document should be matched with that of
Finacle). Customer will only sign on the charge
documents and no over writing or fabrication is

Step 2

allowed in the charge documents.


UDCs must be undated, crossed, in favor of The city
Bank Ltd and amount in figure & word must be

Step 3

same.
In case of cash covered loan, FDR must be duly
discharged and all necessary supporting documents
must be attach with FDR

38

Step 4

For auto loan: Registration and insurance should be as


per Purchase order (engine no, chassis no, model and
HP with City Bank Ltd). Insurance should be for full
car price and comprehensive insurance is required
from our listed insurance company
RM/Sales manager will verify the signature of

Step 5

customer in the LAP and security only with pencil


marking SV (signature verified).

Retail Loan Process Flow at City Bank

Retail Loan Process Flow at City Bank

Branch/Sale
s
Individuals
Application
Individuals
as
Application
Processed
as and
Consumers
Processed
and
forwarded
Consumers
by
forwarded
Branch/Salesby
Branch/Sales

Branch/Sales

Retail Finance Center

Individuals
in
Receiving
Receiving
Business
applicatio
applicatio
ns
ns

Partnership
Partnership
&
Family
Underwriting
& Family
Owned
Underwriting
orOwned
credit
Businesses
or credit
Businesses
decision
decision

Small &
Small &
Medium
Sending
Medium
Sending
Sized
Approved/D
Sized
Approved/D
Companies
ecline
status
Companies
ecline
status
to Source
to Source

Branch/Sales
Large
Local
Branch/Sales
Large
SendsLocal
Corporates
Sends
Corporates
required
required
disbursement
disbursement
doc
to RFC
doc to RFC

Customer

RFC
RFCthe
Disburses
Disburses
Loan to the
Loan A/c
to
customer
customer A/c

39

Discussions and analyses


Data analysis procedure:
The data analysis for this study conducted through Statistical Package for Social
Science software or SPSS version 17.The study also tested reliability of the instrument
so that it enables to produce a robust and valid result.

40

Exhibit 1

Frequencies

Statistics
X1-The RFC of the City Bank
maintained their operations
efficiently and effectively
N

Valid
Missing

20
0

41

X1-The RFC of the City Bank maintained their operations efficiently and effectively
Cumulative
Frequency
Valid

Disagree

Percent

Valid Percent

Percent

5.0

5.0

15.0

20.0

5.0
Moderately agree

3
15.0

Agree
Strongly agree
Total

10

50.0

50.0

70.0

30.0

30.0

100.0

20

100.0

100.0

Descriptive Statistics
N
X1-The RFC of the City Bank

Range
20

Minimum
3

Maximum
2

Mean
5

4.05

Std. Deviation
.826

maintained their operations


efficiently and effectively
Valid N (listwise)

20

42

Variance
.682

Explanation
From the above table, study finds that most of the BSSM and sales officers agree that the
RFC of the City Bank Ltd maintained their operations efficiently and effectively. So Bank
sales manager and sales officers are satisfied with the operations of RFC.

Exhibits 2
Frequencies

43

Statistics
X2-The relation between RFC and
source is good
N

Valid
Missing

20
0

Mean

3.05

Median

3.00

Mode

Std. Deviation

.826
Minimum

Maximum

X2-The relation between RFC and source is good

Cumulative
Frequency
Valid

Disagree

Percent

Valid Percent

Percent

25.0

25.0

25.0

10

50.0

50.0

75.0

Agree

20.0

20.0

95.0

Strongly agree

5.0

5.0

100.0

20

100.0

100.0

Moderately agree

Total

44

Explanation:
The study uses 5 point likert scaling questionnaire in this report. So that average mean is
3.00. The statement is that the relationship between RFC and source is good. From the
above graph, the study finds that most of the BSSM and sales officers moderately agree
that the relation between RFC and source is good. From the above table the study finds
that the mean, median and mode of this statement are 3.05, 3.00 and 3.00. So BSSM and
sales manager moderately agree with the above statement. But they are not highly agreed
with the statement. So RFC should give consideration on this matter.

45

Exhibits 3

Frequencies

Statistics
X3-The City Bank Ltd develops their
nretail products based on the needs
and wants of the customer
N

Valid
Missing

20
0

Mean

3.25

Median

3.00

Mode

Std. Deviation

.786

Minimum

Maximum

X3-The City Bank Ltd develops their retail products based on the needs and wants of
the customer
Cumulative
Frequency
Valid

Disagree

Percent

Valid Percent

Percent

10.0

10.0

10.0

13

65.0

65.0

75.0

Agree

15.0

15.0

90.0

Strongly agree

10.0

10.0

100.0

20

100.0

100.0

Moderately agree

Total

46

Explanation:
The statement is that The City Bank Ltd develops their retail products based on the needs
and wants of the customer. From the above graph, the study finds that most of BSSM and
sales manager moderately agree that The City Bank Ltd develops their retail products
based on the needs and wants of the customer. From the above table study finds that the
mean, median and mode of this statement are 3.25, 3.00 and 3.00. So BSSM and sales
officers moderately agree with the above statement. But they are not highly agreed with
the statement. So RFC should give consideration on this matter.

47

Exhibits 4

Frequencies

Statistics
X4-Retail loan products increase the
profitability and brand identity of the City
Bank ltd
N

Valid
Missing

20
0

Mean

3.65

Median

4.00

Mode

Std. Deviation

.489

Minimum

Maximum

X4-Retail loan products increase the profitability and brand identity of the City Bank ltd
Cumulative
Frequency
Valid

Moderately agree

Percent

Valid Percent

Percent

35.0

35.0

35.0

Agree

13

65.0

65.0

100.0

Total

20

100.0

100.0

48

Explanation:
The statement is that Retail loan products increase the profitability and brand identity of
the City Bank ltd. From the above graph, the study finds that most of the BSSM and sales
officers agree that that Retail loan products increase the profitability and brand identity of
the City Bank ltd. From the above table the study finds that the mean, median and mode
of this statement are 3.65, 4.00 and 4.00 which are higher than average mean. So they are
agreed with the above statement. But they are not highly agreed with the statement.

49

Exhibits 5

Frequencies

Statistics
X5-Retail products of the City Bank Ltd
helps the consumer to meet their
important or personal financial
requirements
N

Valid
Missing

20
0

Mean

3.50

Median

3.00

Mode

Std. Deviation

.761

Minimum

Maximum

X5-Retail products of the City Bank Ltd helps the consumer to meet their important or
personal financial requirements
Cumulative
Frequency
Valid

Disagree

Percent

Valid Percent

Percent

5.0

5.0

5.0

10

50.0

50.0

55.0

Agree

35.0

35.0

90.0

Strongly agree

10.0

10.0

100.0

20

100.0

100.0

Moderately agree

Total

50

Explanation:
The statement is that Retail products of the City Bank Ltd help the consumer to meet
their important or personal financial requirements. From the above graph, the study finds
that most of the BSSM and sales officers moderately agree that the City Bank Ltd help
the consumer to meet their important or personal financial requirements. From the above
table the study also finds that the mean, median and mode of this statement are 3.50, 3.00
and 3.00 which are equal or higher than average mean.

51

Exhibits 6

Frequencies

Statistics
X6-The retail banking of the City Bank
Ltd has transformed into a "buyer
market" from a sellers market
N

Valid
Missing

20
0

Mean

3.30

Median

3.00

Mode

3
Std. Deviation

.571

Minimum

Maximum

X6-The retail banking of the City Bank Ltd has transformed into a "buyer market" from
a sellers market
Cumulative
Frequency
Valid

Disagree

Percent

Valid Percent

Percent

5.0

5.0

5.0

12

60.0

60.0

65.0

Agree

35.0

35.0

100.0

Total

20

100.0

100.0

Moderately agree

52

Explanation:
The statement is that the retail banking of the City Bank Ltd has transformed into a
"buyer market" from a sellers market. From the above graph, the study finds that most of
the BSSM and sales officers moderately agree that the retail banking of the City Bank Ltd
has transformed into a "buyer market" from a sellers market. From the above table the
study also finds that the mean, median and mode of this statement are 3.30, 3.00 and 3.00
which are equal or higher than average mean. So the above graph indicates that BSSM
and sales officers moderately agree with the above statement. But they are not highly
agreed with the statement. So Management should give emphasize on this matter.

53

Exhibits 7

Frequencies

Statistics
X9-Interest rate of retail lending
products of the City Bank Ltd is lower
than other banks in Bangladesh
N

Valid
Missing

20
0

Mean

2.95

Median

3.00

Mode

Std. Deviation

1.050

Minimum

1
Maximum

X9-Interest rate of retail lending products of the City Bank Ltd is lower than other banks
in Bangladesh
Cumulative
Frequency
Valid

Percent

Valid Percent

Percent

Strongly disagree

15.0

15.0

15.0

Disagree

10.0

10.0

25.0

Moderately agree

40.0

40.0

65.0

Agree

35.0

35.0

100.0

Total

20

100.0

100.0

54

Explanation:
The statement is that Interest rate of retail lending products of the City Bank Ltd is lower
than other banks in Bangladesh. The study finds that BSSM and sales officers moderately
agree that Interest rate of retail lending products of the City Bank Ltd is lower than other
banks in Bangladesh. The study also finds that the mean, median and mode of this
statement are 2.95, 3.00 and 3.00 which are equal or nearer to average mean.

55

Exhibits 8

Frequencies
Statistics
Asset operation team always manage
loan disburse and documentation
procedure effectively
N

Valid
Missing

20
0

Mean

4.30

Median

4.00

Mode

Std. Deviation

.657

Asset operation team always manage loan disburse and documentation procedure
effectively
Cumulative
Frequency
Valid

Moderately agree
Agree
Strongly agree
Total

Percent

Valid Percent

Percent

10.0

10.0

10.0

10

50.0

50.0

60.0

40.0

40.0

100.0

20

100.0

100.0

56

Explanation:
The statement is that Asset operation team always manage loan disburse and
documentation procedure effectively. So the study finds that BSSM and sales officers
agree that Asset operation team always manage loan disburse and documentation
procedure effectively. From the above table we can also see that the mean, median and
mode of this statement are 4.30, 4.00 and 4.00 which are equal higher than average mean.
So we can say that sources agree with the above statement. But they are not highly agreed
with the statement.

57

Exhibits 9

Frequencies

Statistics
X14-Credit analyst of RFC are effective
to analyze consumers financial ability
N

Valid
Missing

20
0

Mean

3.00

Median

3.00

Mode

Std. Deviation

.858

Minimum

Maximum

X14-Credit analyst of RFC are effective to analyze consumers financial ability


Cumulative
Frequency
Valid

Percent

Valid Percent

Percent

Strongly disagree

5.0

5.0

5.0

Disagree

20.0

20.0

25.0

Moderately agree

45.0

45.0

70.0

Agree

30.0

30.0

100.0

Total

20

100.0

100.0

58

Explanation:
The statement is that Credit analysts of RFC are effective to analyze consumers financial
ability. From the above graph, the study finds that BSSM and sales officers moderately
agree that Credit analyst of RFC is effective to analyze consumers financial ability. From
the above table the study also finds that the mean, median and mode of this statement are
3.00, 3.00 and 3.00 which are equal to average mean.

Exhibits 10

T-Test
59

One-Sample Statistics
N
X1-The RFC of the City Bank

Mean
20

Std. Deviation

4.05

Std. Error Mean

.826

.185

maintained their operations


efficiently and effectively

One-Sample Test
Test Value = 3
95% Confidence Interval of the
Difference
t
X1-The RFC of the City Bank

5.688

df

Sig. (2-tailed)
19

.000

Mean Difference
1.050

Lower

Upper
.66

maintained their operations


efficiently and effectively

Explanation
Here, the t-test statistic is 5.688, and the significance level is 0.000. This means that the
null hypothesis can be rejected and alternative hypothesis can be accepted with a high
level of confidence from a statistical perspective. From a practical standpoint, in terms of
RFC of the City Bank ltd, the mean of 4.05 is somewhat higher than the midpoint of 3 on
the 5-point scale. So this study indicates that BSSM and sales officers are totally agreed
that The RFC of the City Bank ltd maintained their operations efficiently and effectively.

Exhibits 11

60

1.44

T-Test

One-Sample Statistics
N
X2-The relation between RFC

Mean
20

Std. Deviation

3.05

Std. Error Mean

.826

.185

and source is good

One-Sample Test
Test Value = 3
95% Confidence Interval of the
Difference
t
X2-The relation between

df
.271

Sig. (2-tailed)
19

.789

Mean Difference
.050

Lower

Upper
-.34

RFC and source is good

Explanation
Here, the t-test statistic is .271, and the significance level is 0.789. This means that the
null hypothesis can be accepted. From a practical standpoint, in terms of RFC of the City
Bank ltd, the mean of 3.05 which is equal to average mean. So this study indicates that
BSSM and sales officers moderately agree that the relation between source and RFC is
good.

Exhibits 12

61

.44

T-Test

One-Sample Statistics
N
X4-Retail loan products

Mean
20

Std. Deviation

3.65

Std. Error Mean

.489

.109

increase the profitability and


brand identity of the City
Bank ltd

One-Sample Test
Test Value = 3
95% Confidence Interval of the
Difference
t
X4-Retail loan products

5.940

df

Sig. (2-tailed)
19

.000

Mean Difference
.650

Lower

Upper
.42

increase the profitability and


brand identity of the City
Bank ltd

Explanation
Here, the t-test statistic is 5.940, and the significance level is 0.000. This means that the
null hypothesis can be rejected and alternative hypothesis can be accepted with a high
level of confidence from a statistical perspective. From a practical standpoint, in terms of
RFC of the City Bank ltd, the mean of 3.65 is somewhat higher than the midpoint of 3 on
the 5-point scale. So this study indicates that BSSM and sales officers moderately agreed
that Retail loan products increase the profitability and brand identity of the City Bank ltd

62

.88

Exhibits 13
T-Test

One-Sample Statistics
N
X6-The retail banking of the

Mean
20

Std. Deviation

3.30

Std. Error Mean

.571

.128

City Bank Ltd has


transformed into a "buyer
market" from a sellers market

One-Sample Test
Test Value = 3
95% Confidence Interval of the
Difference
t
X6-The retail banking of the

2.349

df

Sig. (2-tailed)
19

.030

Mean Difference
.300

Lower

Upper
.03

City Bank Ltd has


transformed into a "buyer
market" from a sellers market

Explanation
Here, the t-test statistic is 2.349, and the significance level is 0.030. This means that the
null hypothesis can be accepted with a high level of confidence. Here, the mean of this
statement is 3.30 which are equal or higher than average mean. So this study finds that
BSSM and sales officers moderately agreed that the retail banking of the city bank ltd has
transformed into a buyer market from a seller market.

63

.57

Exhibits 14
T-Test

One-Sample Statistics
N
X11-Asset operation team

Mean
20

Std. Deviation

3.85

Std. Error Mean

.813

.182

always manage loan disburse


and documentation
procedure effectively

One-Sample Test
Test Value = 3
95% Confidence Interval of the
Difference
t
X11-Asset operation team

4.677

df

Sig. (2-tailed)
19

.000

Mean Difference

Lower

.850

Upper
.47

always manage loan


disburse and documentation
procedure effectively

Explanation
Here, the t-test statistic is 4.677, and the significance level is 0.000. This means that the
null hypothesis can be rejected and alternative hypothesis can be accepted with a high
level of confidence from a statistical perspective. From a practical standpoint, in terms of
RFC of the City Bank ltd, the mean of 3.85 is somewhat higher than the midpoint of 3 on
the 5-point scale. So the study finds that BSSM and sales officers agreed that Asset
operation team always manage loan disburse and documentation procedure effectively

64

1.23

Exhibits 15
T-Test

One-Sample Statistics
N
X14-Credit analyst of RFC

Mean
20

Std. Deviation

3.00

Std. Error Mean

.858

.192

are effective to analyze


consumers financial ability

One-Sample Test
Test Value = 3
95% Confidence Interval of the
Difference
t
X14-Credit analyst of RFC

df
.000

Sig. (2-tailed)
19

1.000

Mean Difference
.000

Lower

Upper
-.40

are effective to analyze


consumers financial ability

Explanation
Here, the t-test statistic is .000, and the significance level is 1.000. This means that the
null hypothesis can be accepted. The mean of this statement is 3.00 which indicates that
sources moderately agreed that credit analyst of RFC are effective to analyze consumers
financial ability.

65

.40

Exhibits 16
Independent samples test
T-Test

Group Statistics
Gender
X10-RFC of the City Bank
LTD maintained a

male

Mean

Std. Deviation

Std. Error Mean

15

3.67

.617

.159

3.40

.548

.245

female

comprehensive guideline for


managing retail credit risk
and lending operation risk

Independent Samples Test


Levene's Test for
Equality of Variances

t-test for Equality of Means

95% C

Interv

Diff
Sig. (2F
X10-RFC of the City Bank

Equal

LTD maintained a

variances

.172

Sig.
.683

df

tailed)

Mean

Std. Error

Difference Difference Lower

.857

18

.403

.267

.311

-.38

.913

7.708

.389

.267

.292

-.41

comprehensive guideline for assumed


managing retail credit risk
and lending operation risk

Equal
variances
not
assumed

66

Explanation
From the above table, we can see that t-test statistic is .857 and .913 and significance
level is .403 and .389. this means that the null hypothesis can be accepted which indicates
that there is no difference between male and female in case of the above statement.

Exhibits 17
T-Test

Paired Samples Statistics


Mean
Pair 1

Asset operation team always

Std. Deviation

Std. Error Mean

3.85

20

.813

.182

3.35

20

.933

.209

manage loan disburse and


documentation procedure
effectively
MIS team can manage
identification risk and CPV

Paired Samples Correlations


N
Pair 1

Asset operation team always

Correlation
20

.003

Sig.
.988

manage loan disburse and


documentation procedure
effectively & MIS team can
manage identification risk and
CPV

67

Paired Samples Test


Paired Differences
95% Confidence
Interval of the

Mean
Pair 1

Asset operation team always

.500

Std.

Std. Error

Deviation

Mean

1.235

.276

Difference
Lower

Upper

-.078

1.078

Sig. (2t

df

1.810

manage loan disburse and


documentation procedure
effectively - MIS team can
manage identification risk and
CPV

Explanation
The top table shows paired sample statistic, the mean for asset operation is 3.85 and the
mean for MIS is 3.35. The t value for this comparison is 1.810 and it is significant at the .
086 level. Thus we can accept the null hypothesis that two mean are equal. So we can say
that sources have favorable perceptions on Asset operations and MIS team.

68

tailed)
19

.086

Exhibits 18
T-Test

Paired Samples Statistics


Mean
Pair 1

Asset operation team always

Std. Deviation

Std. Error Mean

3.85

20

.813

.182

3.00

20

.858

.192

manage loan disburse and


documentation procedure
effectively
Credit analyst of RFC are
effective to analyze
consumers financial ability

Paired Samples Correlations


N
Pair 1

Asset operation team always

Correlation
20

.226

Sig.
.337

manage loan disburse and


documentation procedure
effectively & Credit analyst of
RFC are effective to analyze
consumers financial ability

69

Paired Samples Test


Paired Differences
95% Confidence
Interval of the

Mean
Pair 1

Asset operation team always

.850

Std.

Std. Error

Deviation

Mean

1.040

.233

Difference
Lower
.363

Upper
1.337

Sig. (2t

df

3.655

tailed)
19

manage loan disburse and


documentation procedure
effectively - Credit analyst of
RFC are effective to analyze
consumers financial ability

Explanation
The top table shows paired sample statistic, the mean for asset operation is 3.85 and the
mean for MIS is 3.00The t value for this comparison is 3.655 and significant at the .
002evel. Thus we can reject the null hypothesis that the two means are equal. So the
study indicates that sources have favorable perceptions on Asset operation team than
Credit analyst team.

70

.002

Analysis on the three retail products of The City Bank Ltd

Name of the
product/year
City solution
City drive
City express

2009
449,051,298
3,283,111,540
1,251,561,819

2008
119,703,270
914,122,102
166,491,108

Part-04

71

Problems Identified
This study finds out some problems on RFC. Those problems are
1. It has been found that the relationship between RFC and source (BSSM and sales
officers is not so good. BSSM and sales officers said that they dont get adequate support
from the RFC of The City Bank Ltd.
2. It is revealed that the retail products of The City Bank Ltd were not developed based
on the needs and wants of the customers.
3. It is observed that Credit analyst of RFC is ineffective to analyze consumers financial
ability. BSSM and sales officers said that Credit analyst team is an important part of RFC.
But sometimes they failed to analyze application PPG criteria, documents requirement
and prudential regulations of Bangladesh Bank properly.

4. It has been found that Interest rate of retail lending products of the City Bank Ltd is
higher than other banks in Bangladesh. For example, interest rate on auto loan of The
City Bank Ltd is 15% to 16% but interest rate on auto loan of HSBC is 11% to 16%.
Interest rate problem is another problem of The City Bank Ltd.

72

Recommendations
1) RFC should maintain good relationship with BSSM and sales officers
because BSSM and sales officers are conducts important part of retail
banking division.
2) Customer is everything for a service oriented industry. So every
organization should develop their products based on the need and wants of
the customers. So the management of The City Bank Ltd should develop
their products based on the needs and wants of the customer.
3) RFC of The City Bank Ltd should give concentration on their Credit
analyst team. Because most of BSSM and sales officers think that Credit
analyst team unable to properly analyze consumers financial ability. To
increase the effectiveness of Credit analyst team, RFC should arrange
some training and should recruit effective credit analyst.
4) Since BSSM and sales officers think that Interest rate of retail lending
products of the City Bank Ltd is not lower than other banks in Bangladesh.
So The City Bank Ltd should decrease the interest rate of retail lending
products.

73

Conclusion
Retail banking continues to be an industry making seriously successful gains, with record
setting profits being reached year on year and a growing brand presence on the high street
and internet. However, in an era of unprecedented competition and proliferating choice
within the industry, successful operators must remain in tune with customers banking
needs and their expectations of the sector. Retail banks are raising their game across the
board and across the globe. Clear opportunities for expansion exist, but many banks are
failing to adequately capitalize on the enormous potential of the key growth channels
online and mobile sales forcesbecause the performance of these channels does not yet
meet customer needs and expectations. From the analyses and findings of the study, the
study finds that RFC of The City Bank Ltd maintained their operations efficiently and
effectively. The different teams of RFC also maintain their operations efficiently and
effectively. But management of the City Bank Ltd should give more focus on need, and
wants of the customer and Credit analyst team of RFC. RFC should give better service to
BSSM and sales officers and RFC should maintain a good relationship to increase the
value of the organization. Because if RFC failed to manage their operations properly then
whole retail banking division of The City Bank Ltd will be negatively affected.

74

BIBLIOGRAPHY
TEXTBOOKS
Murray R. Spiegel & Larry J.Stephens, Theory and Problems of Statistics, 3rd Edition,
McGraw-Hill, 1999.
Naresh k. malhotra, Marketing research, 5th edition
OTHER PUBLICATIONS
Brochures and publications of CBL products
Annual report of the year 2009 of CBL
Credit Card Brochures and pricing guides of different issuers
WEBSITES (URLS)
Some websites are visited for collecting some secondary data, which are:

http://www.thecitybank .com/

http://www.visa.com/

75

Questionnaire
On
EFC of the City Bank Ltd
1) The RFC of The City Bank maintain their operations efficiently and effectively
a) Strongly disagree b) disagree c) moderately agree d) agree e) strongly agree
2) The relation between RFC and source is good
a) Strongly disagree b) disagree c) moderately agree d) agree e) strongly agree
3) The City bank Ltd develops their retail products based on the needs and wants of
the customer
a) Strongly disagree b) disagree c) moderately agree d) agree e) strongly agree
4) Retail loan products increase the profitability and brand identity of the City bank
Ltd
a) Strongly disagree b) disagree c) moderately agree d) agree e) strongly agree
5) Retail products of the City Bank Ltd helps the consumer to meet their important
or personal financial requirements
a) Strongly disagree b) disagree c) moderately agree d) agree e) strongly agree
6) The retail banking of the City Bank has transformed into a buyer market from a
sellers market
a) Strongly disagree b) disagree c) moderately agree d) agree e) strongly agree
7) Retail lending products of the City Bank Ltd leads to higher consumption and
production in the economy
a) Strongly disagree b) disagree c) moderately agree d) agree e) strongly agree
8) The different requirements of the consumers to get the retail loan are easier than
other banks in Bangladesh
a) Strongly disagree b) disagree c) moderately agree d) agree e) strongly agree
9) Interest rate of retail lending products of The City Bank Ltd is lower than other
banks in Bangladesh
a) Strongly disagree b) disagree c) moderately agree d) agree e) strongly agree

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10) RFC of The City Bank Ltd maintain a comprehensive guideline for managing
retail credit risk and lending operation risk
a) Strongly disagree b) disagree c) moderately agree d) agree e) strongly agree
11) Asset operations team always manage loan disburse and documentation procedure
effectively
a) Strongly disagree b) disagree c) moderately agree d) agree e) strongly agree
12) Collection team can pursue the delinquent customer to manage the portfolio of
The City Bank Ltd
a) Strongly disagree b) disagree c) moderately agree d) agree e) strongly agree
13) MIS team can manage identification risk, CPV and generate loan MIS
a) Strongly disagree b) disagree c) moderately agree d) agree e) strongly agree
14) Credit analyst of RFC are effective to analyze consumers financial ability
a) Strongly disagree b) disagree c) moderately agree d) agree e) strongly agree

Name:
Designation:
Sex: 1) Male 2) Female

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