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
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.
In my capacity as supervisor of the candidates report, I certify that the above statements
are true to the best of my knowledge.
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
10
Methodology
Limitations and Significance of the study
Part-02 (Organization part)
11
12
14
15
15
16-17
18-28
32
32
29
34
35
Credit Decision
36
Disbursement process
38
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.
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.
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.
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
Vision of CBL
To be the leading bank in the country with best practices and highest social commitment
13
Board of Directors
Executive
Committee
Managing Directors
Deputy Managing
Directors
Audit
Committee
Chief Advisor
HEAD OFFICE
Company Secretary
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.
15
SWIFT operation
Credit Card Operation (Proposed)
16
17
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
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
26
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
Credit Cards:
Corporate Cards:
Your American Express Credit Card gives you the following benefits:
27
Your American Express Gold Credit Card gives you the following benefits:
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
Credit Check
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:
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
32
33
34
35
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.
36
No waiver request
37
Disbursement process
Step 1
Step 2
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
Step 5
Branch/Sale
s
Individuals
Application
Individuals
as
Application
Processed
as and
Consumers
Processed
and
forwarded
Consumers
by
forwarded
Branch/Salesby
Branch/Sales
Branch/Sales
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
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
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
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
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
.826
.185
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
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
.826
.185
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
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
.489
.109
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
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
.571
.128
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
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
.813
.182
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
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
.858
.192
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
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
15
3.67
.617
.159
3.40
.548
.245
female
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
.857
18
.403
.267
.311
-.38
.913
7.708
.389
.267
.292
-.41
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
Std. Deviation
3.85
20
.813
.182
3.35
20
.933
.209
Correlation
20
.003
Sig.
.988
67
Mean
Pair 1
.500
Std.
Std. Error
Deviation
Mean
1.235
.276
Difference
Lower
Upper
-.078
1.078
Sig. (2t
df
1.810
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
Std. Deviation
3.85
20
.813
.182
3.00
20
.858
.192
Correlation
20
.226
Sig.
.337
69
Mean
Pair 1
.850
Std.
Std. Error
Deviation
Mean
1.040
.233
Difference
Lower
.363
Upper
1.337
Sig. (2t
df
3.655
tailed)
19
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
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
76
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
77