IFIC.doc

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.

A. Empirical Part of the Report

1.1 Introduction

Bank is the most important institution for any country all over the world. It plays a vital

role in the economy by providing means of payment and mobilizing resources. For the

development and developing economy an efficient banking system is effective. Baking is

one of the most important elements of modern economy and financial system. In the age

of industrialization, since than business has expended and growing rapidly. In this

situation each of the business industry are trying to establish themselves as an effective

one and the mind of customer and their community where they need to rely on financial

institution. Bank is that types of institution, which provides financial support to their

clients as the care for. IFIC Bank Ltd.-International Financial Investment Commercial

Bank Limited is the private commercial bank in Bangladesh that started it journey at

1976 as a joint venture between the government of Bangladesh and sponsor from private

sector. They focus their objectives is to working as a financial company within the

country, committed to the welfare and economic prosperity of the people and the

community. Mission of IFIC Bank Ltd is to satisfying their customers with the help of

skilled and dedicated workforce, innovative action and competitive edge of qualitative

services to all institution and customers as they care for.

Although IFIC Bank are indeed providing a number of services but they are not taking

steps to solve the specific problems of their customers as they are serving a large number

of customers but they are failing to meet the customer needs in a particular time frame .

Here I would like to find out what are the services IFIC Bank Limited provides. Are all of

the customers completely satisfied based on their services? On this statement, I would

like to explore the Customer Attitude toward the Service provided by IFIC Bank Limited.

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1.2 Origin of the Report

This report has made as a prerequisite of the Completion of my MBA program as per the

rule of IUBAT- international University of Business Agriculture and Technology

fulfillment of the course BUS-590 Practicum. For this reason I have done my internship

at IFIC Bank Ltd and the report has prepared by me on the topic of “Exploring the

Customer Attitude toward the Service Provide by IFIC Bank Ltd.”

1.2 Research Design

This Research is exploratory in nature. That is s mainly based on primary data collection

through structure questionnaire filled by customers of IFIC Bank Limited. Secondary

data collected from different sources like yearly report of IFIC Bank Ltd. and different

information from Internet.

This study has been organized into five parts. First part includes the background, rational

of the study, problem, objectives, and scope of the study, methodology as well as the

limitation of the study.

Second part includes organizational part of the Report. That includes history of IFIC

Bank Limited, Corporate information, different department as well as the services they

provide to their customer. Third part includes findings of the report and forth part

includes conclusion and recommendation of the study. Finally fifth part is appendix that

is dales with bibliography and work side.

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1.4 Objectives:

a. Broad Objective:

The first and foremost objectives of this report is to exploring the Customer Attitude the

services provided by IFIC Bank Ltd-International Financial Investment bank Limited.

b. Specific objectives:

Find out the financial services provided by IFIC Bank Limited.

Identify the customer of IFIC Bank Limited.

To identify the attitude of the customers toward the general banking services

provided by IFIC Bank Ltd.

To identify the attitude of the customers toward the profit on financing of IFIC

bank Limited.

Find out the problem customer are commonly facing at present..

Find out the competitive performance provide IFIC Bank Limited to their

customers.

Give some Recommendations on the basis of research findings Of IFIC Bank

Limited.

1.5 Scope of the study:

The scope of the report is limited at drawing a descriptive and analytical rather than

critical presentation of International Finance Investment and Commercial Bank Limited.

The whole analysis and discussion reflects only from and on the IFIC Bank Ltd point of

view. It may help to develop the services and activities and may to develop its products

of IFIC Bank Limited.

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Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.1.6 Methodology:

a)Universe: Dhaka City Corporation (DCC)

b) Population: The population of conducting this Research includes the customers of

IFIC Bank Limited who live in Dhaka city and go to the bank for their account purpose.

c) Time Duration- Three month

d) Data Requirements: to conducts this research the following data required-

Information about International Finance Investment and Commercial Bank Limited (IFIC

Bank Ltd.),

Information about concept of different department of IFIC Bank Ltd,

e) Sample units:

Individual household living in Dhaka City within the age of 18 to 65 years, and go to the

IFIC Bank Limited for their Banking purpose.

f) Sampling Procedure:

First Stage: Three branches were selected by random sampling procedure.

Second Stage: Individual customers (Go to the IFIC Bank Limited and have

account or financial relation with this Bank) were selected by systematic random

sampling.

For selecting the size of sample of the households (Customers) I was used the

following formula-

n = (z² pq) / e²

= {(1.96)² * (.5)} / .5²

= (3.4816 * 0.25) / .0025

= 384.16

= 384

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Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.Here

n = Sample size

pq = precision

z = value of confidence

e= level of significant

1.8 Data collection procedure: Structure questionnaire was used for conducting the

Research of “Exploring the Customer Attitude toward the Service Provided by IFIC Bank

Limited.”

1.9 Data Sources: There are two sources of Data of my Research. Those are bellow-

Primary Data: Primary data are collected from individual customers of IFIC

Bank limited.

Secondary Data: secondary data were collected from Bangladesh Institute of

Bank Management, different report of IFIC Bank Limited an Internet sources.

1.9 Data Processing and Analysis:

After collecting all the data, the questionnaires have been coded and data have been

processed, analyzed, and graphically represented by using MS Excel.

1.10 Limitation of the study

Since information is not contained in a complied from it was difficult to collect

up-to-date on the spite of collection received from different clients and customers.

Another major limitation of the study was the lack of scope of communication

with customers.

Original data could not be collected in some cases due to confidential reason.

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Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.B. Organizational part

2.0 Brief history of IFIC Bank Ltd.

IFIC Bank Ltd.-(International Finance Investment and Commerce Bank Limited) is a

banking company incorporated in the People’s Republic of Bangladesh with limited

liability. It was establish in 1976 as a joint venture between the Government of

Bangladesh and sponsors in the private sector as a financial investment Company. Its

main objectives is working as a finance company within the country and setting up joint

venture banks/financial institutions abroad. In 1980 IFIC Bank‘s Commercial operation

in Foreign Exchange Business was in a limited scale. At 1982 IFIC Bank got the

permission from government to operate as a commercial Bank. In 1983 it setup its first

overseas joint venture on republic on Maldives. Government held 49 per cent shares and

the rest 51 per cent were held by the sponsors and general public. In 1983 when the

Government allowed banks in the private sector, IFIC was converted into a full-fledged

commercial bank. The Government of the People’s Republic of Bangladesh now holds

35% of the share capital of the Bank. Leading industrialists of the country having vast

experience in the field of trade and commerce own 34% of the share capital and the rest

is held by the general public. In 1985 - Set up a joint venture Exchange Company. On the

other hand IFIC bank set up it first overseas branch in Pakistan at Karachi in 1987. At

1983 second overseas branch in Pakistan at Lahore and 1994 establish joint venture in

Nepal for banking operation and 1999set up second joint venture. The year 2003 it

celebrated 20th founding anniversary.

2.1 Composition of ownership

Private sector and Government of the People’s Republic of Bangladesh got the

sponsorship and owner ship of IFIC Bank Limited. Private sector got 60% share and

government got 40% share of IFIC Bank Limited

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2.2Aboard operation

IFIC is the first commercial banks in the private sector to have operations abroad. In

1983, the Bank set up a joint venture bank in Maldives that I known as 'Bank of Maldives

Limited' (BML). It was set up at the request of the Government of the Republic of

Maldives. IFIC Bank managed the affairs of BML from 1983 to 1992. IFIC Bank sold its

shares in 1992 to the Government of the Republic of Maldives and handed over the

Management of BML to Maldives Government.

NIB Bank Ltd., Pakistan:

IFIC Bank had two branches in Pakistan, one in Karachi and the other in Lahore. Karachi

Branch was opened on 26th April 1987, while Lahore Branch was opened on 23rd

December 1993.To meet the Minimum Capital Requirement (MCR) of the State Bank of

Pakistan, the Overseas Branches in Pakistan have been amalgamated with a reputed

leasing company in Pakistan named National Development Leasing Corporation Ltd.

Nepal Bangladesh Bank Ltd. (NB Bank)

Nepal Bangladesh Bank Ltd. (NB Bank), a joint venture commercial bank between IFIC

Bank Ltd. and Nepal nationals, started operation with effect from June 06, 1994 in Nepal

with 50% equity from IFIC Bank Ltd. The Bank has so far opened 17 (seventeen)

branches at different important locations in Nepal. IFIC Bank presently holds 25% shares

in NB Bank.

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Oman International Exchange LLC (OIE)

Oman International Exchange LLC (OIE), a joint venture between IFIC Bank Limited

and Oman nationals, was established in 1985 to facilitate remittance by Bangladeshi

wage earners in Oman. IFIC Bank holds 25% shares, and the balance 75% is held by the

Omani sponsors. The exchange company has a network of 10 branches covering all the

major cities/towns of Oman. The operations of the branches are fully computerized

having online system.

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Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd. 2.3 Correspondent Banks

Country Correspondent Swift Address Currency

U.S.AStandard Charted

Bank, New YorkSCBL US 33 US DOLLAR

U.S.AMashreq Bank psc.

New YorkMSHQ US 33 US DOLLAR

U.S.AHSBC Bank USA,

New YorkMRMD US 33 US DOLLAR

U.S.A

American Express

Bank Ltd. New

York

AEIB US 33 US DOLLAR

HONG KONGMashreq Bank psc.

Hong KongMSHQHKHH US DOLLAR

U.KStandard Charted

Bank, LondonSCBL GB 2L US DOLLAR

U.S.ACity Bank N.A.,

New YorkCITIUS 33 US DOLLAR

U.S.A

J.P. Morgan Chase

Bank N.A., New

York

CHAS US 33 US DOLLAR

U.K.Standard Chartered

Bank, LondonSCBL GB 2L GB POUND

U.K.H.S.B.C. Bank plc,

LondonMIDL GB22 GB POUND

SWITZERLAND UBS AG., Zurich UBSW CH ZH SWISS FRANC

JAPANBank of Tokyo-

Mitsubishi, TokyoBOTKJPJT JAPANESE YEN

GERMANY Hypovereins Bank HYVE DE MM EURO

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AG, Munich

GERMANYCommerz Bank

AG, FrankfurtCOBADEFF EURO

GERMANY

JP Morgan Chase

Bank AG,

Frankfurt

CHAS DE FX EURO

CANADAHSBC Bank

Canada, TorontoHKBCCATT

CANADIAN

DOLLAR

INDIASonali Bank,

KolkataBSONINCC ACU DOLLAR

INDIAState Bank of India,

Kolkata

SBIN IN BB

106ACU DOLLAR

INDIAStandard Chartered

Bank, Kolkata

SCBL IN BB

CALACU DOLLAR

INDIAAmerican Express

Bank Ltd., Kolkata

AEIB IN DX

CALACU DOLLAR

INDIAArab Bangladesh

Bank Ltd., MumbaiABBL IN BB ACU DOLLAR

INDIA

The Hongkong &

Shanghai Banking

Corporation,

Mumbai

HSBC IN BB ACU DOLLAR

INDIAICICI Bank Ltd.,

KolkataICICINBBCTS ACU DOLLAR

SRILANKANations Trust Bank

Ltd., ColomboNTBC LK LX ACU DOLLAR

NEPAL

Nepal Bangladesh

Bank Ltd.

Kathmandu

NPBBNPKA ACU DOLLAR

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BHUTANBank of Bhutan,

PhuentosolingBHUBBTBT ACU DOLLAR

PAKISTANNIB Bank Ltd.,

KarachiNIBPPKKA ACU DOLLAR

AUSTRALIAJ.P.Morgan Chase

Bank, SydneyCHAS AU 2X

AUSTRALIAN

DOLLAR

AUSTRALIA

HSBC Bank

Australia Ltd.,

Sydney

HKBA AU 2XAUSTRALIAN

DOLLAR

2.4 District wise Branch Distribution

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2.5 Different Branches of IFIC Bank Ltd.

IFIC Bank Limited Agrabad Branch

IFIC Bank Limited Bajitpur Branch

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IFIC Bank Limited Banashwar Branch

IFIC Bank Limited Bangshal Branch

IFIC Bank Limited Beanibazar Branch

IFIC Bank Limited Benapole Branch

IFIC Bank Limited Bogra Branch

IFIC Bank Limited Brahmanbaria Branch

IFIC Bank Limited Borobazar Branch

IFIC Bank Limited Chapai NwabGoang Branch

IFIC Bank Limited Chawk Bazar Branch

IFIC Bank Limited Chowmouhani, Noakhali Branch

IFIC Bank Limited Comilla Branch

IFIC Bank Limited Cox’s Bazar Branch

IFIC Bank Limited Companigong Branch

IFIC Bank Limited Dhanmondi Branch

IFIC Bank Limited Dinajpur Branch

IFIC Bank Limited Elephent Road

IFIC Bank Limited Faridpur

IFIC Bank Limited Feni

IFIC Bank Limited Ghorashal

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IFIC Bank Limited Head office

IFIC Bank Limited Islampur

IFIC Bank Limited Jessor

IFIC Bank Limited Kawren Bazar

IFIC Bank Limited Khatun Gonj

IFIC Bank Limited Khulna

IFIC Bank Limited Koabari Branch

IFIC Bank Limited Kustia Branch

IFIC Bank Limited Mudahabdi Branch

IFIC Bank Limited Malibagh Branch

IFIC Bank Limited Motijhul Branch

IFIC Bank Limited Moulvi Bazar(Dhaka) Branch

IFIC Bank Limited Mukterpur Branch

IFIC Bank Limited Mymensing Branch

IFIC Bank Limited Naogaon Branch

IFIC Bank Limited Narayangong Branch

IFIC Bank Limited Narsinsdi Branch

IFIC Bank Limited Nawabpur Branch

IFIC Bank Limited Nayapaltan Branch

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IFIC Bank Limited Nitaigonj Branch

IFIC Bank Limited Noapara Branch

IFIC Bank Limited North Brook Hall Road Branch

IFIC Bank Limited Pabna Branch

IFIC Bank Limited Pallabi Branch

IFIC Bank Limited Rajshahi Branch

IFIC Bank Limited Ranjpur Branch

IFIC Bank Limited Shatkharia Branch

IFIC Bank Limited Shah Amanat Market Branch

IFIC Bank Limited Sheikh Market Branch

IFIC Bank Limited Shantiangar Branch

IFIC Bank Limited SheikhMujib Road Branch

IFIC Bank Limited Shreemongol Branch

IFIC Bank Limited Sabid Bazar Branch

IFIC Bank Limited Terri Bazer Branch

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IFIC Bank Limited TulTikan Branch

IFIC Bank Limited Tekherhat Branch

IFIC Bank Limited Uposhahan Branch

IFIC Bank Limited Asulia Branch

IFIC Bank Limited Rupjong Branch

IFIC Bank Limited Foticsory Branch

IFIC Bank Limited Gowala Bazar (Sylhet) Branch

2.6 Corporate Information

a) Management Structure

16

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.The thirteen members of the Board of Directors are responsible for the strategic planning

and overall policy guidelines of the Bank. Further, there is an Executive Committee of

the Board to dispose of urgent business proposals.

Besides, there is an Audit Committee in the Board to oversee compliance of major

regulatory and operational issues. The CEO and Managing Director, Deputy Managing

Director and Head of Divisions are responsible for achieving business goals and

overseeing the day to day operation.

The CEO and Managing Director is assisted by a Senior Management Group consisting

of Deputy Managing Director and Head of Divisions who supervise operation of various

Divisions centrally and co-ordinates operation of branches.

Key issues are managed by a Management Committee headed by the CEO and Managing

Director. This facilitates rapid decisions.

There is an Asset Liability Committee comprising member of the Senior Executives

headed by CEO and Managing Director to look into all operational functions and Risk

Management of the Bank.

b) Board of Directors

Board of Directors of the Bank is a unique combination of both private and Government

sector experience. Currently it consists of 13 Directors. Of them eight represent the

sponsors and general public and four senior officials in the rank and status of Additional

17

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.Secretary/Joint Secretary represent the Government. Managing Director is the ex-officio

Director of the Board.

Mr. Mohammad Lutfar Rahman Chairman

Mr. Abu Tahir Mohammad Golam Maruf Director

Mr. Murshed Murad Ibrahim Director

Mr. Aminur Rahman Director

Mr. Md. Yasin Ali Director

Mr. Didarul Alam Director

Chowdhury Nafeez Sarafat Director

Mr. Tanim Noman Sattar Director

Mr. Mahmudul Huq Bhuiyan Director

Mr. Arastoo Khan Director

Mr. Syed Monjurul Islam Director

Mr. Mohammad Ali Khan, ndc Director

Mr. Mashiur Rahman Managing Director

c) Hierarchy of the Management of IFIC Bank Limited

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http://www.ificbankbd.com/directorsprofile.php?id=13














2.7 Principles of IFIC Bank Limited

Mobilization of savings and keeps all types of deposit A/C In Bank

Board of DirectorManaging Director

Deputy Managing Director

Executive Level

Sr. Executive Vice President

Executive Vice President

Sr. Vice President

First Vice President

Vice President

Mid Level Management

Sr. Asst. Vice President

First Vice PresidentAsst. vice President

Sr. Staff Officer

Staff Officer

Officer Grade 1.

Lower Level Management

Officer Grade 2

Cash Officer

Computer Officer

Office Assistant

Security StaffDriver

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Introduce modern commercial and their services to their Customers

Opening and handling of export and import activities and import trade of foreign

remittances support to export activities

Provide competitive services to their client and customer.

Work for human resources development by providing employment opportunity

Give advance, especial and productive services for socioeconomic development.

2.8 Bank charges and commission of IFIC bank Limited

Particulars Nature of charges Rate of charges

Current account Incidental charges

Closing charges

Tk 150 at half yearly rest, iff

balance comes down bellow the

minimum required limits of

TK.2000.

200

Saving account Incidental charges

Closing charges

TK. 150 at half yearly rest, if

balance come down bellow

required balance of TK 1000

100

Collection of cheque commission Free

Collection of out standing cheque Commission

Up to TK 25000

Up to Tk 1 lac

Up to TK 5 lac

Over 5 lac

0.15% min. Tk 20

0.15% min. Tk 50

0.15% min Tk 150

0.05% min. TK 800

Remittance

DD/TT/MT

Commission

Telex/ telegram/ Fax

0.10% min Tk 25

at actual min TK. 30

Collection of DD/TT/ MT

Charge of DD collection TK 50

Issuance of PO Charges Up to Tk 1000= TK 10

Up to TK 1 lac= 25

Up to Tk 5 lac= 50

Over 5 lac= 100

Collection of PO Charges Up to TK 1000= TK20 20

Above TK 1000= 40

Godown Charge Rent

Insurance

Salary & allowance of godown staffs

At actual

Actual

Actual

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Bank’s Rent Godown Rent

Insurance

Salary & allowance of godown staffs

Actual rent for floor space occupied

plus 75% to meet other maintenance

cost

To be realize from borrower’s A?C

proportionately

To be realize from borrower’s A?C

proportion-ately.

Parcel charges TK= 50

Locker & safe

Small size

Medium size

Large size

Security Money( Refundable)

Replacement of lost Key

Charge

Tk1500

TK2000

Tk 2500

TK 1000

At accurate plus handing charges=

15% of rent

2.9 Banking Function

There are three function of IFIC Bank Limited, all of the Branch dales with three

functions.

1) General Banking

2) Loans and Advance Department

3) Foreign Exchange Department

1) General Banking

General Banking Department is one of the most important departments of banking

activities. We can say that this one is the heart of any bank because all kinds of

transaction are gone through this department. General Banking activities deal with

following section:

Deposit Section

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Account Section

Administrative section

Dispatch and

Bill section

Deposit and Account Section

Account section is that a type of section where each of the individual customers is

firstly needs to meet with this department in order to open their account. Account and

deposit section dales with:

Account opening activities

Banking Cheque Processing

Deposit FDR

Internet

Types of Account at IFIC Bank Limited

Savings Account

Current account

FDR account

Sundry Deposit

CC Account

Saving Account:

Saving account is popular type of account at IFIC bank, this on is easy to operate. At the

beginning of opening an account, account holder should deposit the amount of minimum

22

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.500 at rural branch and 1000 is for urban branch. Some requirements need to follow for

opening for savings account. Those are –

Account holder should provide his/her passport photo copy or he/she can provide

the Chairmen certificate.

Two copies resent passport size photo.

Declaration of Nominee’s name and his or her passport size photo.

Another account holder’s signature, who operating his or her account with good

transaction. And that account holder should know about the new account openers.

On the other hand that signatory account holder should have saving account with

in the specific branch of IFIC bank Limited.

Should fill the up the format of saving accounts opening form.

Savings account rules:

A Deposit can’t withdrawal twice in a week with out notice

Withdraw of more then TK. 25000 will require 7 days notice.

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Cheque book will uses to SB account holders having minimum balance of

taka 500 for rural place and 1000 for urban place.

Interest is calculated on the minimum balance in a month.

Charges impose for issuing cheque book.

Current Account

Current account is open by different business person, entity, partnership firm, limited

company, sole proprietorship business, associates etc.

Requirement of current Account:

Name

Address

Present

Permanent

Mandate of writing

Declaration of nominee

Letter of introduction

Specimen signature

Two copy of passport size photograph

Initial deposit taka 20000

For joint venture/stock companies, associate or others

True copies of certificate of registration

True copies of certificate of commencement

Resolution of the board of director

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Memorandum and Articles

Certificate list containing name and signature of the directors

For Partnership Business:

Name of the company/ Business

Deed of the partnership

Trade license

Endorsement of the account

PSS account (Pension Savings Scheme)

There are two types of PSS account at IFIC Bank Limited

Three years PSS A/C

Five years PSS A/C

Three Years Term Five Years Term

Monthly

Installment

Amount payable

after Maturity

Monthly

Installment

Amount

payable after

Maturity

TK. TK. TK. TK.

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500 20,322 500 36,266

1000 40,645 1000 72532

2000 81,290 2000 145064

5000 2,03225 5000 362,661

1) Eligibility:

PSS A/C can not opened by minor or in the name of the minor

A Person of 18 years old and above having a sound mind can open PSS A/C

PSS A/C Can Transfer from one Branch to another branch of IFIC Bank Limited

2) Nomination

Nomination is mandatory

a. An account holder can nominate one or more person(s) as his/ her

nominees.

b. An account holder can nominate new nominee(s) by canceling the

previous nominees by a written instruction to the Bank. Necessary

formalities are to be observed in such case.

c. An account holder will fix the amount of each nominee by fixing the share

of amount receivable by such nominee(s) in case the number of nominees

is more than one person.

d. The nomination will be cancelled if the nominee dies in the lifetime of the

account holder. The account holder in such case will advise a new

nominee.

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e. Deposited amount will be payable to nominees as per prior written

authority recorded in the Bank.

f. In the event of account holder’s death his /her nominee(s) may be allowed

to continue the account. In this regard the nominee will have to submit an

application to the Bank for continuation of the account along with a copy

of the death certificate of the account holder.

3) Procedures for payment of pension:

g. The account holder will have the option to receive the entire deposited

amount with interest at a time or to receive the pension on monthly basis.

This option can be modified or changed by the account holder if he/she

desires within the maturity period by submitting an application in writing.

h. The account holders shall inform the branch regarding the amount of

monthly installments. In case of repayment of pension on monthly basis

the deposited money will be entitled to payment of pension till the

deposited fund is exhausted.

i. The deposited money will be payable to the account holder in his /her

SB/CD account with us or through payment order or to his nominee (in

case of his death). The rules noted in clause 6 in case of payment to

nominee/ nominees will applicable of succession certificate.

4) Automatic closure of A/C and its re-validation:

On failure to pay 4(four) consecutive monthly installment the Account will be closed

automatically. Installment is to be paid between 1st to 10th days of each month.

However, if the 10th days of a month falls within a holiday the next working day will

be eligible for revalidation of the account, the following rules will apply:

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j. If the client fails to deposit any monthly installment in the month when it

is due that case he/she may deposit the same within10th the following

month by giving reasonable grounds in writing for case of failure and the

account will be revalidated when such installment will be deposited along

with an additional amount of Tk10/=, Tk.15/=,Tk.20/=, Tk.25/=& Tk.

50/= being the penalty for late payment of monthly installment of

Tk.500/=, Tk.1000/=, Tk. 2000/= &Tk. 5000/= respectively.

k. If the client fails to deposit the any monthly installment continuously for

three consecutive month, in hat case within 10th of the 4th month, the client

will have to give reasonable grounds in writing for failing and the account

will be revalidated when the client will pay additional Tk. 30/-, Tk. 45/-,

Tk, 75/-, @ Tk.150/- along with the overdue monthly installments of Tk.

500/-, Tk. 1000/-, Tk. 2000/- @Tk. 5000/- respectively.

l. Any account closed due to failure to deposit more than 3 installments will

not be eligible for revalidation irrespective of the duration of the account.

m. The client will have options for revalidation of the account 2 times for 3

years and 3 times for 5 years term.

5) Pre-mature closure of the Account:

An account holder may close the account at any time by a written application. In that

case Tk 200/- will be charged as banks service charge for closing the account and the

following rules will be applicable.

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a. In case, the account is closed within 1 year, only principle amount will be paid to

the client.

b. In case, the amount is closed after one year but before completion of the term

client will be paid back principal amount along with interest at savings rate/ PSS

rate prevailing on the date of closure of the account, provided the client must

deposit at least 12 installments to qualify under this clause. .

FDR- Fixed Deposit Receipt

Fixed Deposit Receipt Account (FDR) is repayable after the expiring of a determined

period that is fixed by customer. Customer may open his or her account for the period of

three months, six month one year or five years. Interest is varies from time to that is

depends on circular provided by main branch of IFIC Bank ltd. And the interest is given

after the account is mature. If account is not mature than no interest is provided to the

account holder. On the hand interest mount is not added with the principle and where

principle amount remain same.

Sundry Deposit:

This type of account is not directly opened by customer and no application is required to

open. This amount can not be dept or posted under any account holder. Amount is kept

under the head of the sundry deposit account. IFIC Bank Ltd maintains sundry deposit

register to solve these types of problem.

Account is not after opening the account a cheque book is issued to the customer for

withdrawal from his account. IFIC Bank issued cheque book that contain ten leaves,

depends on different types of account, like SB (saving account, current account)

Account Close: - Banker can close the account holder, account on the following

circumstances

29


Notice give by the account holder

Death of account holder

Insolvency

Order of the count.

Bill Section:-

The main objective of different commercial bank is providing lightly qualitative services

to their client and customer. IFIC Bank, remittance facilities are very popular the word

“Remittance” means sending of money from one place to another thought post & The

graph IFIC Bank taking responsibility to extant this facility by receiving money from

one branch of bank and making arrangement for payment to another brand within the

country. There are two types of remittance:

Inward

Outward

Remittance may be categories as

Demand Draft(DD)

Telegraphic Transfer(TT)

Payment Order(PO)

Mail Transfer(MT)

Pay Deposit(PD)

All types of banks or operations in our country under the banking company act 1991.

There are difference types of banks operations in our country.

Those are:

Central Bank

Nationalized \ Government control Bankers.

Private Commercial Bank.

30


Foreign Commercial Bank.

Case Section:

Case section is an important part of general banker the main objective of cash section is

receiving and payment of cash \ money to the customer.

Account Section:

All of the transaction which is done in the banking business during the bank period those

are maintained by account section. This section balancing all of the transaction and they

are responsible for accountability of transaction.

Other services of IFIC Bank ltd.

Credit card

Online Bank

Debit Card

Saturday Banking

Exchange

31

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd. Back up Support Services

Customer Queries

Customer Report

Corporate Remittance

Regulatory Reporting

Anti Money Procedure

2.10 Loan Advance Department

Banks act as intermediaries between surplus and deficit economy unit by mobilizing

fund from surplus economic unit and developing it to deficit economic unit. The interest

earned on the developed fund is banks main source of economy.

Out of its interest income they pay interest to depositors and meet other expenditures. A

banker has to be very cautions while lending money because he lend dposits money

which does not belong to the banks and which must be returned on demand. The banker

has to keep in mind that lending is for the best interest of the community and lending

should be directed to productive sector only.

Concept of Credit

The term credit may be defined broadly or narrowly, speaking broadly, credit is finance

made available by one party (Lender, Seller, shareholder owner) to another (borrower,

buyer, corporate or non-corporate firm).

32

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.More generally, the term credit is used narrowly for only debt finance. Thus defined

credit is simply the opposite of debt. Credit is stock-flow variable. Credit should be

carefully distinguished from money.

Kind of credit:

There is no unique way of classifying credit. It can be and need to be classified in more

than one way specializing in only one aspect or dimension of credit.

Thus we classify credit from five different angles:

Source

End- use

Users

Term and

cost

The source of credit

Institutional

Banks

a) B.B

b) Other banks

Commercial

33


Co-operative

Non banks

Non institutional

Money lenders & indigenous Banks

Open Market

Sellers (Trade Credit

Principles of lending

The principle of lending is a collection of certain accepted time tested standards

which ensure the proper use of loan fund a profitable way and its timely recovery.

Different authors describe different principles for sound lending.

IFIC Bank Ltd. follows the following principles in this lending actively:

a) Safety: Safety should get the prior importance in the time of sanctioning the loan.

At time of maturity the borrower may not willing or may unable to pay the loan

amount so on the time of sanctioning the loan adequate securities should be taken

from the borrowers to recover the loan. Banker should not sacrifice safety for

profitability.

b) Security: Banker should be careful in the selection of security to maintain the

safety of the loan and banker should properly evaluate the proper value of the

security. If the estimated value is less then or equal to loan amount, he loan is to

given against such securities.

c) Liquidity: Banker should consider the liquidity of the loan in the time of

sanctioning it. Liquidity is necessary to meet the consumer’s needs.

34


d) Adequate yield: As a commercial orientation banker consider the profitability. So

banker considers the interest rate when go for lending. To ensure the profitability

banker should consider the prospect of the project.

e) Diversity: Banker minimizes the fort polio risk by putting its fund in the different

fields. If the bank put its entire loan able fund in o0ne sector it will increase the

risk. On the other hand they should distribute its loan able fund in different

sectors. If it faces any problem in any sector it can be recover by the profit of

another sector.

The following things departments are under uttara branch of IFIC bank Ltd.

Consumer credit service

Loan administration

Credit recovery call

Concept of credit department: The job in this department starts the application made

by the client; approve the same, which is disbursed to consumers. There are three

employees one is chief officer, one is senior officer and one is officer currently and.

working over desk in this dept.

Main functions:

35


Activities of the department:

Preparing of sanction letter as per HO approval

Monitoring & follow-up of credit facilities extend from this Branch

Compliance of review of MSOCF, Client-wise Position ,HW/TR

Reporting of daily task force & daily LDOs position to H.O.

Export L/C checking & preparation of credit memos relating to back to back

L.Cs monitoring project loan of garments projects

Preparation of statements relating to NRIT A/C and maintaining record of the

foreign investments

Preparation for proposal of project loan for board approval.

Monitoring of the credit facility extended to different project

Statement of the monthly garments position interest subsidy, force loan act

Monitoring of foreign investments in capital market through our branch

All work related to custodial service.

All types of correspondence related to credit service depts..

Preparation of credit memos for approval/renewal of the credit facilities

Preparation of credit memos for the credit facilities under cash L/C and IBP

Processing of consumer credit loans & preparation of all statements of the

consumer credit loans.

PROPOSAL

APPROVAL SANCETION

APPROVAL SANCETION PROPOSAL

36

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.Types of loan provided by IFIC Bank limited

CC(Cash Credit)

OD (Overdraft lone)

Project loan

Transport loan

House Building loan

Loan Against Financial Obligations

Secured Demand lone

PE (Provident Fund) loan

Staff transport loan

PAD (Payment Against Document)

CC Loan (Cash Credit Loan)

A cash credit is an arrangement by whish the customer is allowed to borrow money up to

a certain limit. A cash credit is a fluctuating amount and is operated in the same way as a

current account on which an overdraft has been sanctioned. This is a permanent

arrangement and the customer need not to draw the sanctioned amount of money at a

time; the borrower can draw the money as and when required. The borrower pan put back

any surplus amount which he may find with him.

37

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.Procedure of sanction of CC loan:

If any one applies fore these types of loan the economic purpose must be shown. This

types of loan is given to both industrial and commercial sector. Some requirements of CC

loan:

1) photo copy of trade license

2) balance sheet of the last three years

3) Certificate of incorporation

4) Resolution copy of last meeting

5) Cash flow statement

6) Fire service license copy

7) Statement about the details of assets

8) export import registration

9) description of Current Capital

10) description and price of merchandise

11) TIV( Tax payer identification number)

OD (Over Draft Loan:

OD is a short term loan an only a temporary accommodation and the borrower is allowed

to draw and repay any number of times, provided that the total amount over drawn does

not exceed the agreed limit. For providing these types of loan Banks takes some primary

securities, like bond, share Certificate, Debenture Certificate etc.

Project Loan:

38

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.Mainly project loan are provided by the Bank is to establish the Industries. This one is the

main source of industrial credit. It may provide short or long term loan.

General transport Loan:

This loan is provided to purchase vehicles- like Bus, Mini Bus etc.

This is a midterm loan.

Consumer Loan

IFIC makes people life-style easy and Comfortable with the help of Consumer Durable

Loan procedure. So avail the easy facility offer by IFIC Bank Ltd. Maximum taka 1 lac

and the period to repay the loan amount within 12-36 months

General House Building loan:

It is a long term loan, which is provided for constructions, expansion and repairs of

Buildings and development, and purchase of the land.

Easy Loan

Needs are not end less if one need fulfill than another need knocking at the door. In that

mind IFIC Bank Provide Easy Loan services to their customer to fulfill their dream. The

way customer can get the Easy Loan: Maximum 95% of the face value of FDR. The

period to repay the loan amount within 12-36 month.

Staff loan:

There are four types of staff loan .

PF(provident fund) loan

Staff transport loan

39

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.Staff house building loan

Staff sewing machine loan

PF Loan:

IFIC provides this loan to their executives and senior officers and employees. Staff is

permitted to take loan up to 100% of their fund.

PAD (payment against document)

After shipment exporter send necessary documents to the importers bank. Their importer

bank scrutinizes the documents. At first the importers bank lodges the documents and

after lodgment the payment is made to the exporter banks. So it found that PAD is a

process of sight payment against certain documents stated in the latter of credit.

Loan Approval Documentation:

Entertainment of application for loan proposal

Preliminary screening of credit proposal

Feasibility study and appraisal of loan proposal or credit investigation

Sanction of loans or advances.

Documentation

Disbursement of loans or advances

Loan:

1. DP note signed on the revenue stamp

2. Letter of disbursement

3. Letter of arrangement

4. Letter of pledge

5. Letter of hypothecation

6. Letter of Grantee

7. Letter of partnership or board of resolution

40


8. Letter of lien and ownership

9. Letter of lien for packing credit

10. Letter of lien and transfer authority

11. Letter copy of sanction letter mentioning detail of terms and condition, and

acknowledge of the borrower

Legal document for mortgage of property.

2.11 Legal aspect of loan and Advances:

A legal affair is a part of loan and Advance department. It includes legal procedure to

recover the default loan. When a borrower fail to pay the loan with in the due date the

bank normally follows official correspondence and personal contact to induce the

borrower to pay the loan. So legal action is the final action of the banks for the recovery

of default loans and it is the exercise of power by the court not by the bank.

Normally the suit is fielded three years from the disbursement of the loan. Tome may be

extended when calculation start from the following date-

Last payment date

Last acknowledgement date

Last balance confirmation date.

.

41


42


2.12 Foreign Exchange Department

Modern banks facilitate trade and commerce by rendering valuable services to the

business community. Apart from providing appropriate mechanism for making payments

arising out of trade transactions, the banks gear the machinery of commerce, specially in

case of international commerce., by acting as a useful link between buyer and the seller,

who are often too far away from and too unfamiliar with each other. According to foreign

exchange regulation act 1947 “Any thing that conveys the right to wealth in another

country is foreign exchange. Foreign exchange department services for the customers.

Opening or issuing letters of credit is one of the important services provided by the banks

Letter of Credit

A letter of credit is a letter issued by a bank (known as the opening or the issuing bank)

at the instance of its customers (known as the opener) addressed to a person (beneficiary)

undertaking that the bills drawn by the beneficiary will be duly honored by it (opening

bank) provided certain conditions mentioned in the letter have been complied with.

The Customary clauses Contained in a L/C are the following

A clause authorizes the beneficiary to draw bills of exchange up to a certain on

the opener

The list of shipping documents, which are to accompany the bills

Description of the goods to be shipped

An undertaking by the opening bank that bills drawn in accordance with the

conditions will be duly honored.

Instructions to the negotiating bank for obtaining reimbursement of payments

under the credit.

Personnel observation

43

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.The following things have been observed:

Credit Facilities

The credit section of IFIC Bank Ltd. Uttara Branch provides two kinds of credit

facilities.

1. Funded Credit facilities: These facilities associated with direct fund

involvement. These includes: funded facilities.

Overdraft (OD)

Advance against work order

Advance against DR

Loan against trust receipt(LTR)

Staff loan

House Building Loan

2. Non-funded Facilities

Parties to a letter of credit

The parties to a L/C are

Importer / buyer

Opening bank / issuing bank

Exporter / seller / Beneficiary

Advising bank/ Notifying bank:- it is the bank exporter’s country , which is

usually the foreign correspondent of importer’s bank through which the L/C is

8.If the intermediary bank simply advises / Notifies the L/C to he exporter without

any obligation on its part, it is called” Advising Bank”

44


Negotiating bank:- The bank that negotiates the bill of exporter drawn under the

credit is known as Negotiating a bank. If the advertising bank is also authorized to

negotiate the bill drawn by the exporter, he becomes the Negotiating Bank.

Confirming bank:- If the advising bank adds its own undertaking to honor the

credit while advising the same to the beneficiary he becomes the confirming bank.

Paying / Reimbursing bank:- If the issuing bank dies not maintain any account

with a bank will be negotiating documents under LC than arrangement is made to

reimburse the negotiating bank for the amount is to be paid under from some

other bank with home the issuing bank maintains his account. The letter bank is

known as reimbursing bank .IFIC Bank ltd. Uttara Branch dales with following

functions of foreign exchange department.

1. Import Activities

2. Export activities

3. Foreign Remittance

Import- Import is foreign goods services purchase by consumers, firms & Governments

in Bangladesh.

Import procedure:-

Bank Account

Import Registration Certificate

Tax Paying identification number

Performa Invoice Indent

Membership Certificate

LC application from

On set of IMP from

Insurance cover note with money receipt

Fig: 1 Import Procedure

45


Import Registration Certificate

Purchase Contract with foreign Supplier

Letter of credit authorization (LCA) form

Opening letter of credit by the importers bank

Dispatch of letter of credit to the beneficiary by issuing banks correspondent

Receipt of import documents from negotiating bank

Scrutiny of import documents

Are the documents discrepant

Lodgment of import bills

Instruct reimbursing bank not to

honor claim

Request the opener to take delivery of import documents for release of goods.

Do they accept documents with discrepancies

Inform negotiating bank about discrepancies

Inform negotiating bank about discrepancies

Do they accept document

Deliver the documents to the importer

Send back the documents

Collect proceeds for importers

Retire the import bill and documents to the opener

Whether they want post import finance

Have they responded?

Retire the bill through collection of forced and & clear the goods through C & F agent and store the same under effective control relevant expenses in collection with clearing of goods.

If you agree recover further margin from the opener & retire the documents by creating of lim & clear the goods through c& f store the same under banks effective control relevant expenses of clearing of goods.

46


Main functions:

The following thing things are done in import activities:

Total supervision of import department

Payment of back to Back overdue bill

Correspondence

Regarding, backing to backing L/C and cash

Maintenance of Due Date Dairy

Maintenance & record of related L/C Document

Audit Companies

Batch checking

L/C opening/ Arrangement

Balancing of L/C Contingent liability

Follow up of sub-Judaic bills and maintaining liaison with head office and foreign

correspondent.

Supervisions of checking, lodgment and retirement of import documents under

Back

to Back L/C

Issuing of Certificate and attestation of papers/ documents under Back to Back

L/C

Checking , lodgment, retirement of import documents under Back to back L/C

Issuance of shipping guarantee Back to Back L/C

IMP from fill-up ( Cash L/C)

Inform negotiating bank about maturity date of Back to Back L/C

Quarterly statement for bonded warehouse

Balancing of accepted liability.

Statement of outstanding accepted import bills under Back to Back L/C.

Opening an d amendment of cash /inland l/c

Maintenance and record of pass book and IRC.

Checking of cash Documents

47


Preparation of monthly foreign exchange business position.

Back to back L/C

Back to Back letter of credit may be fined as credit which is opened at instruction and

request of the beneficiary of the original export L/C on the basis of strength of the L/C.

Ready made garment industries and specialized textile units are allowed the facility of

importing fabrics and other materials needed for manufacture or garments / specialized

textiles against Back to Back L/C arrangement. Back to Back L/C is two types

Foreign back to Back Letter of Credit

Inland Back to back letter of credit

Procedure fore opening Back to Back L/C

The following papers / documents are required to be submitted by the exporter to the for

opening foreign Back to Back L/C.

L/C authorization

Indent pro forma invoice

Imp-form

Along with the above papers/ documents, original export L/C is to be submitted by the

exporter. On receipt of these documents the bank scrutinizes the terms and conditions of

the export L/C. after getting approval from head office through credit section, the

particulars of the L/C are entered in the L/C opening register.

EXPORT

Export and services sold by Bangladesh to households.

48

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.The export trade of the country is regulated by the import and export control act, 1950.

There are a number of formalities, which an exporter has to fulfill before after the

shipment of the goods. The exports from Bangladesh are subject to export trade control

exercised by the ministry of Commerce through Chief Controller of Imports and Exports

(CCI).

No Exporter is allowed to export any commodity permissible for export from Bangladesh

unless he registered with CCI.

Main Functions

The following things done in this department:

Security of Export Shipping Document

Follow-up for realization of export Proceeds

All correspondence relating to export department

Compliance of audit and inspection advising of export L/Cs to the beneficiary

Authentication of L/C and amendments from other correspondent Bank

Transfer of export L/C to the second Beneficiary & issuance of notice of transfer

to L?C issuing Bank.

Recording of export L/C particulars in export L/C Transfer Register

Realization of transfer changes

Issuance of precedes realization Certificates

Certificate of EXP forms

Posting of Tickets

Lodgment of export bills (FBP, FDBC, IBP & IBC)

Negotiation of Inland Bills

Maintenance of all records related to FBP, FDBC and Inland Bills

49


Balancing of FBP, FDBC, and IPB and A/R export A/Cs

Preparation of statement and all returns to Bangladesh Bank and Head Office

(weekly, monthly, and quarterly).

50

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.2.13 Foreign Remittance Department:

Understanding;

IFIC Bank Ltd. Uttara Branch is an authorized dealer of foreign exchange. There are

dealing in foreign exchange department involved buying and selling of foreign exchange

covering inward remittances received from abroad and outward remittances sent abroad.

Main functions

The following things are done this Department overall supervision of foreign

Remittance Dept:

Correspondence to Nostro Account

Foreign TT payment & purchase of F. drafts, Chouse & preparation of F.B.P.

Checking of all batches.

Assist in preparation of IBC/ IBDA etc.

Trading Blotter.

Compliance of Audit & Inspection

Issuance of outward TT & FDD.

Issuance of PRC

Statement of all related works regarding deposit of Bangladesh Bank.

Foreign collection, Bangladesh Bank clearing Cheque Collection, which comes

from all broach of ABBL

Withdrawal from F.C. A/C

Encasement of TC s and Cash Dollar and sterling Pound.

Deduction of Tax and VAT.

Preparation of related statements including convertible TK. Account.

Preparation of IBCA & IBDA and Balancing of collection and other special

assignment as desired by Department in charge.

51


Issuance of TC & cash Dollar correspondence with different Bank institution

related to TC/ Dollar.

Student Cash handling & preparation of related statements ( Head office &

Bangladesh Bank).

Balancing of account statements.

Batch posting and all related statements.

Foreign Demand Draft (FDD)

Foreign Demand Draft is popularly used for educational purpose in our country. It is used

for other Commercial purposes also.

Issue of FDD

The relevant papers, which establish the issuing bank requires the purpose of issuing

FDD. The procedure concerning issue of FDD is same as issue of traveler’s cheque

expect that the customer is not required to submit his/ her passport.

Payment of FDD

After receiving the FDD for payment there are few stapes, which are to be followed:

1. At first the FDD is to be crossed.

2. Serial number is given

3. Forwarding letter to the Bank has agreement.

4. Party is given the cash or his/her account is credited.

Endorsement of cash

Cash foreign currency can also be remitted through endorsement in the passport. In

case of endorsing cash on passport the requirements are same as in case of issue of

traveler’s cheque.

52


The Q-cash card network offers all banking requirements without ever setting foot in

bank! It's more than just an ATM service for quick cash withdrawals or account

enquiries.

With the unique Point of Sale (POS) terminals, situated in shops, restaurants and other

service centers around the city, you can use your Q-cash card to pay for goods and

services by debiting or by credit your account directly.

Q-cash Q- cash card provides round the clock banking. ATMs operate 24 hours to offer:

Cash Withdrawals

Balance Enquiry

Mini Statement

Cheque Book Request

PIN Change

Utility Bills Payment

53

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.POS terminals operate throughout the day and beyond banking hours to offer:

Debit Transactions

Credit Transactions

Account Information

Online and Offline

How to apply for Q-cash

1. Any person having an account with the respective branch of our bank is eligible

for IFIC Q-cash Card with our prescribed form. The reason behind is the IFIC Q-

cash Cardholder will have a separate ATM Card Account (centralized), which

will link with normal Bank Account (distributed) e.g. SB, CD, STD etc. of that

cardholder.

If a cardholder of our bank applies for supplementary card (i.e. for his/her wife/husband

or children) then the principal cardholder of our bank must give written permission for

debit/credit authority to our Bank on his/her bank account. This feature is available in our

IFIC Q-cash Card Application Form.

CREDIT FACILITY

A cardholder can apply for credit facility for IFIC Q-cash Card account. For availing any

credit limit, sanction from Credit Division, Head Office will be necessary. This facility

will be implemented very soon.

CARD FEES/CHARGES AND RESTRICTIONS ON CASH WITHDRAWAL

54

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.The following fees/charges will be realized from the IFIC Q-cash Card customer.

Card Fees:

Card Issuing fee = Tk. 750/-

Card renewal fee = Tk. 750/-

Lost card reissue fee = Tk. 500/-

Restrictions on Cash Withdrawal:

In a single transaction maximum cash withdrawal = Tk. 5,000/-

Maximum cash withdrawal in four transactions on the same day = Tk. 20,000/-

How to fill up the application form:

Brief descriptions of related sections are given below:

Part A: General Information

This part has four sections, which are mentioned below.

1. Personal Particulars - This section contains name, date of birth, address,

father's name etc. of a cardholder.

55


2. Occupation Particulars - This section contains employer name,

designation etc. of a cardholder.

3. Bank Reference - Information related to bank reference of a cardholder is

required. All possible charges, fees and interests related to card would be

through the general bank account (e.g. SB/CD/ CC etc.) of a cardholder.

4. Debit Authority - A cardholder must sign on this section to give us the

written debit authority to adjust different kinds of charges, fees and

interests through using of IFIC Q-Cash card. This section is also required

for issuing supplementary card i.e. if a principal cardholder requests for

issuing card for his/her spouse/children (who dose not have any account

with our bank) then the principal cardholder must give us written debit

authority in the application form of his/her spouse/children to adjust

different kinds of charges, fees and interests through using of

supplementary IFIC Q-Cash card.

Part B: Over Draft Limit (Credit) Facility

this part contains information related to Financial Status & Payment Instruction of

an applicant for issuing IFIC Q-Cash Card with credit facility (SOD/OD).

Part C: Terms & Conditions

The applicant must read all the terms and conditions printed overleaf of the

application form before signing.

56


2.14 Administrative and Establishment Department

This department is responsible for the control of overall administrative aspects of the

organization like company matters, personnel matters, services, stationary,

transportation matters, training etc. it is also responsible for arranging the meetings

and about the communication matters with head office and other branches.

57


Table# 1

58


About account at IFIC Bank Ltd.

Parameter Frequency Percentage

Yes 280 73

No 60 16

Not Response 44 11

Total 384 100%

Graphical Representation

73%

16%

11%

Yes

No

No Response

Interpretation

It has been revealed from the above- mentioned findings on the question of, do you have

any account at IFIC Bank Limited? 73% respondents have the account at IFIC Bank Ltd

and only 16% respondents have no account, but they come to this Bank for other purpose.

On the other hand11% Respondent were not responses of this finding.

Table#2

59

About Account at IFIC Bank Ltd

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd. Come to know about IFIC Bank Limited by-

Frequency Percent

Valid Newspaper 92 26

Staff of the Bank 60 18

Relatives 78 23

Other Banks 29 9

Publicity 52 15

Others 29 9

Total 340 88.5


Come to know about IFIC Bank Ltd.

26%

23%18%

15%

9%9%

Newsspaper

Relatives

Staff of the Bank's

Publicity

other Banks

Others

Interpretation

26% respondents told that they come to know about IFIC Bank Ltd by Newspaper, 23%

respondents know by relatives, 185 respondents told that they come to know about of

IFIC Bank’s by the staff of this bank. Others 15% know by publicity, and 9% and 9%

know about this bank others banks and others information’s.

Table#3

60


Reason behind choosing IFIC bank ltd


Old Bank 70 20

Good facility 60 17

Batter service 50 15

Nice environment 50 15

Known personnel 40 12

Reputation 40 12

Special Service 30 9

Total 340 100%

.


Interpretation

205% respondent chooses this Bank because of old private commercial bank in

Bangladesh. 205% chooses for good facility.15% respondent thought that IFIC bank

provide batter services that is why they chooses this Bank. 15% for nice environment,

and 12% for known personnel, 12% for reputation, and 9% fore special Service of IFIC

Bank ltd.

Reason behind choosing IFIC BankLimited

20%

17%15%15%

12%

12%9%

0%

0%

Old bankGood facilityBatter serviceNice environmentKnown personnelReputationSpecial service

61

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.Table# 4

Types of financial facility currently use of the customers

at IFIC bank Ltd.


Savings A/C 200 58

Current deposit 50 15

Fixed deposit 50 15

CC A/C 40 12

Total 340 100%


Types of financial facility currently using the Customer of IFIC Bank Ltd.

58%15%

15%

12% 0% Saving Account

Current Deposit

Fixed Deposit

CC account

Interpretation:

58% respondents has Savings A/C

15% respondents has Current A/C

15% respondents has Fixed Deposit A/C and

12% respondent has CC A/C at IFIC banks ltd.

62

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd. Table#5

Time of involvement with IFIC Bank Ltd of the respondents


1 to 5 years 100 29

6 to 10 years 100 29

11 to 15 years 80 24

16 to 20 years 50 15

Others 10 3

Total 340 100


Customer's involvement with IFIC Bank Limited

29%

29%

24%

15%3%

1to 5 years

6 to 10 years

11 to 15 years

16 to 20 years

others

Interpretation

On the question of, how long have you been involved with IFIC Bank Ltd? 29%

respondents involve with 1-5 years and 6-10 years with this bank for their different A/C

purpose. 24% respondents involved with11 to 15 years and 15% respondents are 16 to 20

years.

63

Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.Table#6

Comment on the degree of interest rate of IFIC Bank Ltd.


Good 60 18

Moderately Good 80 24

Similar to other PCBs 110 32

Poor 90 26

Total 340 100%


Comment on the degree of interest rate of IFIC Bank Ltd.

Good18%

Moderately24%

Similar to other PCBs32%

Poor26% Good

Moderately

Similar to other PCBs

Poor

Interpretation

Most of the respondents, e.g. (32% respondent) said that interest provide by IFCI Bank

Ltd on deferent account is similar to other PCBs. 24% respondents responses that their

interest rate is moderately good. 26% respondent mentioned that IFIC Bank’s interest is

poor, only 18% respondent told their interest rate good.

64


Opinion about financial Schemes


Yes 190 56

No 150 44

Total 340 100%


Opinion about financial Schemes

Yes56%

No44% Yes

No

Interpretation

From the above findings 44% respondents told that they are not satisfies on financial

scheme. 56% respondents are completely satisfies on financial schemes of IFIC bank Ltd.

65


Customers loan at IFIC Bank Ltd.


Yes 40 12

No 200 29

Not response 100 59

100


Customers loan at IFIC Bank Ltd.

40, 12%

200, 59%

100, 29%

Yes

No

Not Response

Interpretation

From the findings 59% respondent have no loan at IFIC bank Ltd. 0nly 12% respondents

told that they have loan at this Bank. On the other hand 29 % respondents were not

responded this types of question.

66


Comment on profit rate of financing


Similar to other

PCBs

100 29

Less than other

PCBs

170 50

High interest rate 30 9

Don’t know 40 12

Total 340 100%


9.

Interpretation:

29% told that profit rate on financing is similar to other Private Commercial Bank ltd.

50% respondents mentioned that profit rate is less than others PCBs. Other few of them

told profit rate is higher and others don’t know.

IFIC Bank's profit rate of financing is-

29%

50%

9%

12% 0% Similar to otherPCBs

Less than otherPCBs

High interest rate

Don’t know

67


Bank is responsible for deposit withdrawal in time


Yes 300 88

No 40 12

Total 340 100


Bank is responsible for deposit withdrawal in time

Yes88%

No12%

Yes

No

Interpretation

It has been revealed from the above- Mentioned finding that the most of the respondents,

that is 88% identifies bank is responsible for deposit withdrawal in time. Because of

infrastructure problem. Only 12% respondent said that, Bank is not responsible deposit

withdrawal in tome.

68


Table# 11

Comment on different commission and charge of IFIC Bank Ltd.

Parameter frequency Percentage

Less than other PCBs 76

Similar to other PCBs 12

Higher than other

PCBs

3

Don’t know 9

Total 340 100%


Comment on different commission and charge of IFIC Bank Ltd.

76%

12%

9%3%

Less than other PCBs

Similar to Other PCBs

Don't know

higher than other PCBs

Interpretation

Most of the respondent told that IFIC bank’s commission and charge is less than other

Banks. 125% respondent told that its commissions and charges are similar to other Bnks.

69


Table# 12

Respondents are using financial facilities from other PCBs


Yes

No

Total


Respondent are using financial facilities from other PCBs

No74%

Yes26%

No

Yes

Interpretation:

74% respondents are not getting any other financial facilities from other banks. 26%

respondents have an account to others Private Commercial Banks.

70


Table# 13

Comment on competitive return on investment


Better return 50 15

Equal to other PCBs 100 29

Less than other PCBs 190 56

Total 340 100%


Comment on competitive return on investment

56%29%

15%Less than otherPCBs

Equal to otherPCBs

Better return

Interpretation

It has bee revealed from the above – Mentioned findings 55 percent respondent responses

that, IFIC banks’ return on investment is less then others PCBs, 29% told return is equal

to others and 15% respondents told this Bank provide batter return on their investment.

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Table# 14

Opinion about receive account statement on time


Yes 290 85

No 50 15

Total 340 100%


Respondant openion about receive their account statement on time

85%

15% 0%

Yes

No

Interpretation

It has been revealed from the above- mentioned findings that 85% respondents are getting

their account statement on time and 15% told that they are not getting their account

statement with in the particular time frame.

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Table # 15

Comment on front line officers should more prompt than other officers

Parameter frequency percentage

Yes 290 85

No 50 15

Total 340 100%


Yes85%

No15%

Yes

No

Interpretation

85% respondent think front line officers should more prompt than other officers because

they are providing main services to their clients/customers.15% respondents mentioned

that front line officers are prompt to provide their services. So they need not to make

more prompt.

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Table#16

Customers opinion on the responsibility of IFIC Bank’s staffs

Parameter Frequency percentage

Moderately

Responsible

140 41

No 130 38

Yes 40 21

Total 340 100%


.

Customers opinion on the responsibility of IFIC Bank’s staffs

moderately Responsible

41%

No38%

Yes21%


No

Yes

Interpretation

41% respondents think that staffs are moderately responsible to provide different services

of IFIC Bank Limited. On the other hand 38% respondent told that they are not as

responsible as they should be. 21% respondent told that staffs are responsible to provide

different services.

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Customers’ opinion on time frame to provide competitive service


Moderately

Responsible

160 47

Yes 100 29

No 80 24

Total 340 100%


Customers’ opinion on time frame to provide competitive service


47%

Yes29%

No24%


Yes

No

Interpretation

47% respondent responses that staffs are moderately responsible to provide competitive

services within the time frame of IFIC bank Ltd. 29% said they are responsible and

24%said that staffs are not enough responsible to serve the customers needs within the

particular time.

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Different types of Problem customers are facing


TMT service 100 29

Online banking 120 35

Account opening 80 24

TT service 40 12

Total 340 100%

Different types of Problem customers are facing

29%

35%

24%

12%

TMT servise

Online banking

Account opening

TT services

Interpretation

From the findings of respondents’ information, 29% are daily facing the problem on

TMT service. Because it consumes enormous number of time to provide this types of

services. On the other hand 35% respondent faced the problem on online Banking

services. 24% respondent told that they are facing different types of problem on opening

an account. 12% respondent faced the problem on Telegraphic Transfer (TT).

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Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.C) Recommendations:

Regarding on Time frame of particular services:

As most of the respondents have identifies that, to provide a particular service is

consuming more time, which is not expected on modern Banking system. So I would like

to recommend that IFIC bank Ltd. should provide the efficient services for their

important customers.

Regarding on Staff efficiency

Staffs are the most important resourced for effective Banking activities. So they should

more and more prompt to provide qualitative services for their present and future

customers of their Banks’.

Regarding on TMT

Customers are facing a problem on Travelex Money Transfer (TMT). They comment

that it consume more time to provide TMT payment. Because payment order is come

from head office of IFIC Bank ltd. they are delaying to provide the transfer information.

Here I would like to recommend that this type of service providers of head office should

have responsible enough to serve their customers. .

Regarding on online Banking Service

From the findings of this research understood that customers are facing on the service of

online banking. Most of the respondent told that all of the Branches have not online

banking system, so that they are facing problem. I would like to recommend that all of

the branches should have this type of facility to meet customer’s needs.

Regarding on Account opening procedure

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Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd.On the basis of the customer’s comments and clarifications I would like to recommend

that, opening an account procedure make easier. Make different list of requirements so

that customer can understand procedure to open account. Few of them not understand of

English language, so Bangla option should includes with English.

Regarding on responsibility of Staff of IFIC Bank Ltd

I would like to recommend that staffs should responsible to provide batter services as

they should be.

Regarding on interest ate provided by IFIC Bank Ltd.

From the above findings I would like to recommend that interest rate should increase may

compare with other Private Commercial Bank Ltd

Regarding on improvement of infrastructure:

Most of the customers mentioned that improvements and modification of infrastructure is

needed. By this improvement of technology IFIC can give them batter service and overall

satisfaction.

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D) Conclusion

The Research study has been conducted on “Exploring the Customer Attitude toward the

Service Provided by IFIC Bank Limited”. From the above discussion of the study I would

like to conclude that IFIC Bank is first private commercial Bank in Bangladesh, that

provide number of services to their customers. Most of the individual customers’ attitude

is constructive toward the services of IFIC bank Limited. On the other hand most of the

customers are completely satisfied on the services of this Bank. Customers mention that

although interest rate of IFIC bank Limited is not higher than other banks but different

changes and commissions are less then others Banks. In respect of quick and efficient

Services from IFIC, client are not entirely dissatisfied, even through it was a reliable bank

to its most of the clients. In regard to competitive return on their investment, most of the

clients were, however, satisfied.

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Questionnaire

Dear Respondent

I am Rizna Nahar Student of Master of Business Administration (MBA) Program at

IUBAT- International University of Business Agriculture and Technology. This

Questionnaire is designed for conducting a research on “Exploring the Customer Attitude

toward the Service Provided By IFIC Bank Ltd” as a partial requirement of my MBA

program. The findings will be keeping confidential and will be used exclusively for

academic purpose only. Your participation in this study will be highly appreciated.

………………………………………………………………………………………….

Respondent Information:

Name:

Age:

Gender:

Occupation:

………………………………………………………………………………………………

Instructions: please (√) the specific spaces.

1. Do you have any account at IFIC Bank Ltd.?

Yes No

2. How did you come to know about IFIC Bank Ltd.?

Newspaper Staff of the bank Relatives

Other bank publicity others

3. Why the reason behind choosing the IFIC Bank?

Reputation Better Service Old bank

Good facility Nice Environment

Known personnel Special Service

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4. What types of financial facility you are currently using?

Saving account Current Deposit

Deposit CC Account

5. How long have you been involved with IFIC Bank Ltd.?

1 to 5 years 5 to10 years

10 to 15 years other

6. Please specify the degree of interest rate of IFIC Bank Ltd.

Good Similar to other commercial Bank

Moderately good poor

7. Do you think IFIC bank’s financial Schemes satisfy for you?

Yes No

8. Do you have any types of loan at IFIC Bank?

Yes No

9. IFIC Bank’s profit rate on financing is-

Similar to other Bank PCBs higher interest rate

Less than other PCBs don’t know

10. Do you think IFIC Bank’s Deposit Schemes are satisfies you?

Yes No

11. Do you think Deposit/ withdrawal time in the following bank is responsible?

Yes No

12. IFIC Bank’s different commission charges are –

Higher than other PCBs Less than other PCBs

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Exploring the Customer Attitude toward Service provided by IFIC Bank Ltd. Similar to other PCBs Don’t Know

13. Are you using financial facility from other PCBs?

Yes No

14. Does IFIC Bank ltd. provides competitive return on your investment?

Better Equal Less

15. Do you receive your advices account statements in time?

Yes No

16. Do you think that front line staff officer should be more prompt of IFIC Bank Ltd?

Yes No

17. Do you think as responsible as they should be?

Yes No

18. Do you think IFIC bank Ltd. Follow the time frame as they should be?

Yes No

19. Do you face any other problem in term of the services you are getting from IFIC

Bank Ltd.? Please mention it bellow-

………………………………………………………………………………………………

20. If you have any comment please mention it bellow

………………………………………………………………………………………………

Signature of the Respondent

…………………………….

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Bibliography

Kinner, Thomas C, and James R. Tailor. “Marketing Research: An Applied Approach”

5th ed. New Delhi: McGraw Hill, 2003.

Kotler, Philip. “Marketing Management.” 9th ed New Delhi: Prentice Hall, 1999.

Zikmund, Willam G. “Business Research Method”. 7th edition. McGraw Hill, 2003.

Work side

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