University of Liberal Arts Bangladesh Department of Business Administration Internship Report On “Borrower’s Perception On Prime Bank Limited” Submitted to: SUMAIYA ZAMAN Lecturer, Business Administration Submitted by: SAMEER ANSARY ID: 081011072 1 | Page
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
University of Liberal Arts BangladeshDepartment of Business Administration
Internship ReportOn
“Borrower’s Perception On Prime Bank Limited”
Submitted to:SUMAIYA ZAMANLecturer,
Business Administration
Submitted by:SAMEER ANSARYID: 081011072BUS-499Major: Finance; Minor: Computer Science and EngineeringDepartment of Business Studies (BBA)
Date of Submission: August 21, 2011
1 | P a g e
LETTER OF TRANSMITTAL
August 21, 2011
Sumaiya ZamanLecturer Business AdministrationUniversity of Liberal Arts Bangladesh
Subject: Submission of Internship Report of Prime Bank Limited.
Dear Sir,
It is my pleasure to submit my Internship Report on “Borrower’s Perception on
Prime Bank Limited” as a requirement of Internship course, BUS-499.
I tried my best to gather relevant information for constructing a complete report as
outlined. The preparations of this report enable me to a great extent to complete my
theoretical knowledge with practical analysis. I would like to express my profound
gratitude for your kind and conscious guidance in preparing my report in the giving
time.
Thank you very much for your heartiest co-operation.
Yours sincerely,
(Sameer Ansary)
BBA 081thBatch, Major-Finance
ID no-081011072,
Department of Business Department,
University of Liberal Arts Bangladesh
2 | P a g e
ACKNOWLEDEGEMENT
First of all I would like to express my gratitude to omnipotent and almighty Allah, whose invisible guidance helped me to complete this report. Although, time was very limited for getting the sufficient knowledge about all of banking service, but the short experience that I gathered as an internee, in Prime Bank Limited on Sat-Masjid Road Branch an asset for all the time to come in my life. I take the opportunity to express my deep sense of gratitude of my reverend supervisor, Sumaiya Zaman (Lecturer, Business Administration, University of Liberal Arts Bangladesh) for his invaluable suggestions and guidance during the study period that has greatly inspired me in preparing this report successfully.
I am highly thankful to all of the employees of Prime Bank Limited, Sat-Masjid Road Branch for their support that helped me to prepare this report. All of them are very frank and helpful exception. I couldn’t think a single moment that I am a student of internee in that bank they help me as his employee. Besides I have special appreciation towards following resource person for helping me:
Md. Omar Kabir, Vice President. Md. Aminur Rahman Akanda, Assistant Vice President and Manager
Operation. Shah Mohammad Mohsin, First Assistant Vice President. Md. Masud Uddin Ahmed, First Assistant Vice President. Md. Rofiqul Islam, Executive Officer. Sharmin Rahman, Executive Officer. Md. Eshtiak Masud, Executive Officer. Faria Azad, Executive Officer. A.S.M Hasan Sohel, Executive Officer. Md. Naiamul Farid, Senior Officer. Jahir Uddin, Senior Officer. Md. Golam Mostofa, Officer. Md. Saiduzzaman Khan, Management Trainee. Sree Jyotish Chandra, Management Trainee. Sharmin Akter, Trainee Assist.
Finally, I want to express my deep gratitude to my parents and other family members and also remember my friends whose enormous helps assist me to complete my report.
Serial No. Particulars Page
3 | P a g e
No.Abstract 1CHAPTER: 01 INTRODUCTION 2-6
1. 1 Statement of the Research Problem 3-4
1.2 Objective of the Study 41.3 Methodology of the Study 5-61.4 Scope of the Study 6
CHAPTER: 02 COMPANY PROFILE 7-24
2.1 Background of the Prime Bank Limited 82.2 Principle Activities of the Bank 8-142.3 Management Hierarchy 152.3.1 Sat Masjid Road Branch’s Management Hierarchy 162.4 Network of the Bank 172.5 Raito Analysis of the Prime Bank Limited and their
Competitor’s AB Bank Limited18-22
2.6 SWOT Analysis 232.7 Loan Calculator of Prime Bank Limited 24
CHAPTER: 03 FINDINGS OF THE STUDY 25-28
3.1 Findings in Different Situations 25-28CHAPTER: 04 SUMMARY ANDRECOMMENDATION 29-31
4.1 Summary of the Study 304.2 Recommendations 30-31
CHAPTER: 05 BIBLIOGRAPHY AND APPENDIX 32-51
5.1 Bibliography 33-365.1.1 Books and Publications 335.1.2 Websites 335.1.3 Questioners 34-365.2 Appendix 37-515.2.1 Ratio Analysis Information of Prime Bank Limited and AB
Bank Limited37
5.2.1.1 Performance at a Glance (Prime Bank Limited) 375.2.1.2 Statement of Comprehensive Income (Prime Bank Limited) 385.2.1.3 Statement of Cash Flow (Prime Bank Limited) 395.2.1.4 Statement of Financial Position (Prime Bank Limited) 405.2.1.5 Financial Highlights (Prime Bank Limited) 41-435.2.1.6 Graphical Presentation (Prime Bank Limited) 44-455.2.1.7 Financial Information (AB Bank Limited) 46-51
TABLE OF CONTENTS
4 | P a g e
ABSTRACT
This report is an outcome of the internship program under the BBA program requirement in the Prime Bank Limited. During my internship in the organization I have gathered different information which was necessary for preparing this report.
This report is written on the Borrower’s Perception on Prime Bank Limited.
In chapter 1, I have introduced the topic, along with the objective of the report, which was mainly understand how to gain real life exposure in the banking sector and to get a clear idea about Borrower’s Perception. I have also mentioned the method followed to gather the information and the sources of data.
The company profile is stated in the chapter 2. It includes the background of the bank, with principle activities, management and branch’s hierarchy, branch network, ratio analysis of the Prime Bank Limited and their competitor’s AB Bank Limited, SWOT analysis and Loan calculator of Prime Bank Limited.
Chapter 3 starts with findings in different situations about Borrower’s Perception on Prime Bank Limited. In this chapter all the survey questions are graphically presented.
Chapter 4 draws summary of this report. I have included my observation, some loop wholes and Prime Bank and the effects of these. Then I have tried to draw out some solution to those problems and some recommendation.
Finally chapter 5 has the tables and graphs and other information in the appendix that might be needed for the better understanding of the report.
A borrower is a person or institution who has been approved to receive a loan and is then obligated to repay it and any additional fees according to the loan terms. Borrower’s perception is so much important for any bank because if they know the perception level of their borrowers then they can do all the loan able works easily. That’s why in this report I have tried to explain and highlight this issue precisely.
5 | P a g e
6 | P a g e
Learning Objectives:
1. Statement of the Research Problem
2. Objective of the Study
3. Methodology of the Study
4. Scope of the study
INTRODON CHAPTER 01:
INTRODUCTION
1.1 Statement of the Research Problem:Statement of the Research Problem:
In general sense we mean “Bank” as a financial institution that deals with money. There are
different types of banks like Central bank, Commercial bank, Savings bank, Investment
bank, Merchant bank, Co-operative bank etc. But when we use the term bank it generally
means ‘commercial bank’ that collects the deposit from surplus unit of the society and then
lends the deposits to the deficit units.
Now-a day’s banking sector is modernizing and expanding its hand in different financial
events every day. At the same time the banking process is becoming faster, easier and is
becoming wider. In order to survive in the competitive field of the banking sector all
organizations are looking for better service opportunities to provide their fellow clients. So
it has become essential for every person to have some idea on the bank and banking
procedure.
Internship program has been included to BBA curriculum for producing talent, up-to-date
and smart, efficient executives. Internship means gaining supervised experience. Internship
program offers an opportunity to know the environment of a particular organization.
Theoretical knowledge does not make a person perfect. To implement the academic
knowledge, practical knowledge related to it is important. A perfect coordination between
theory and practice is important in the context of modern business world. In order to
resolve the dichotomy between theory and practice, the different university arranged
Internship Program as a partial completion of BBA program. This program is necessary for
every student to complete his or her academic degree. Internship program brings student
closer to the business theory and practical and thereby help them to substantiate their
knowledge so that they can prepare themselves to start a successful career.
As a participant in this, I was place under Prime Bank Limited, Sat Masjid Road Branch,
Dhanmondi, which is well reputed for trade and commerce in Dhaka city. In preparing the
report, I have incorporated the suggestion from correspondents to mention here.
This report is mainly emphasis on Borrower’s Perception on in Prime Bank Limited -
comparative study with leading private Banks. Financial services are a difficult business,
subject to many pressures. The regulatory environment, risk and capital management,
reporting and compliance are all major issues demanding the attention of board and
executive alike. On top of this there is still a business to run, with customers to be won or
retained, costs to be managed and shareholder value to be created, all in an increasingly
7 | P a g e
dynamic and international environment, where failure on any of these counts can swiftly
lead to the attention of predators, both domestic and international.
Important to the success of a financial service organization in this complex environment is
the key relationship between the revenue generating client base and the cost of the
infrastructure required to service, satisfy and delight them. The cost-income ratio remains
one of the most closely watched and targeted numbers in any modern bank.
On the revenue side growth in customer numbers, customer retention, share of wallet, and
cross sale ratio are all key metrics. While on the cost side the variables are around staff
numbers, branch numbers, the range and variety of channels to the customer and the
location of transaction processing, as off shoring develops as a means to both manage cost
and, in some cases, improve customer service.
What then, are some of the most important elements of Borrower’s Perception in the
current market and what has been going right and wrong for the banks?
This report is an important part of every student course curriculum and the gaining of his
practical training. It ensures the practical knowledge on a specific matter, which is assigned
to the students by their respective teachers or otherwise known as supervisor.
The Title of my report is “Borrower’s Perception on Prime Bank Limited” This report is
assigned by the HR department of Prime Bank Limited and approved by the Supervisor of
Finance Department, Faculty of USB, and University of Liberal Arts Bangladesh.
1.2 Objective of the study:
The ultimate objective of the study is to gain real life exposure in the banking sector and to
get a clear idea about Borrower’s Perception on Prime bank Limited.
The objectives of the study are:
Building habit of working and learning responsibility on the duration of internee.
To present an overview of PBL.
To appraise the task which are directly linked with Borrower’s.
To identify problems of Borrower’s awareness.
Identify the solution of these problems and provide some recommendation.
1.3 Methodology of the Study:
8 | P a g e
The nature of this report is descriptive, so instead of doing any survey or using sampling
method, observation method is used to complete this qualitative research. Most of the
necessary information has been collected by face to face interview.
Population:
The study has been conducted on the Borrower’s Perception on Prime Bank Limited. But
because of branch specific constraints it was conducted on the clients of credit section.
Sampling Unit:
Only branches of Prime Bank in DCC area was under consideration for the sampling unit
for the study, i.e., Sat-Masjid Road Branch, Karwanbazar Branch, Bangshal Branch, Asad
Gate Branch, Panthapath Branch.
Sampling Technique:
Random sampling is used for the purpose of the study.
Sources of Data:
The report is based on both primary and secondary data sources. Interviewing the managers
and officers of the bank, talking to the customers has provided the primary data.
Furthermore, different publications of the bank, annual reports, and the bank website were
the secondary sources of data.
Primary Sources:
The primary data had been collected from various sources. The different sources
were:
Distribute questionnaire among selected customer to receive feedback.
Face to face conversation with the employees.
By personal interviewing and interacting customers at Prime Bank Limited.
Observing various organizational procedures.
Secondary Sources:
From prior research report.
From different books and periodicals related to the banking sector.
From internet.
Annual report of Prime Bank Ltd.
9 | P a g e
Published Booklet of Prime Bank Ltd.
Various published documents.
Data Collecting Technique:
Fort the purpose of the study two methods of techniques used:
Observation
Interview
Observation:
Observation method is often used to complete this qualitative research because it is very
difficult to provide any specific example from any file about certain document, as the
matter is very sensitive for the client as well as for the bank.
Interview:
Primarily some data are collected from face-to-face interview of different employees of
Prime Bank Limited at Sat Masjid Road Branch. By face to face conversation with the
Borrower’s and by personal interviewing it is easy to collect the accurate
information for the study. For the purpose of this interview, customers were asked
to fill up a questionnaire. Based on their answer, it is easy to justify the Borrower’s
Perception on Prime Bank Limited.
1.4 Scope of the Study:
The scope of this report is limited to the overall description of the
Bank/Organization (Only Dhaka Branches Banks), its services and its position in
the industry and its marketing strategies. The scope of the study is limited to
organizational setup, functions and performances.
10 | P a g e
11 | P a g e
Learning Objectives:
1. Background of Prime Bank Limited2. Principle activities of the Bank3. Management Hierarchy 4. Network of the Bank5. Ratio Analysis of Prime Bank Limited and
their Competitor’s AB Bank Limited6. SWOT Analysis7. Loan Calculator of Prime Bank Limited
INTRODUCTIO
NCHAPTER 02: COMPANY
PROFILE
2.1Background of Prime Bank Limited:
During the booming years of the banking industry of Bangladesh, a group of highly skilled
local entrepreneurs came up with an idea to float a commercial bank with a different
outlook. The idea was to build a banking organization with excellence, competence and
consistent delivery of reliable service with superior customer satisfaction. The outcome of
this thinking was the Prime Bank Limited, commenced its business on April 17, 1995.
Since the beginning the bank is being managed by a team of professionals, with dedication
and sincerity. Their experience and hard work has taken the bank in the leading position.
The bank is constantly focused towards the understanding and predicting customer’s needs
and meeting them. It is giving a tough competition to other banks in case of performance
and customer satisfactions.
The bank offers almost all sorts of commercial banking services within the framework of
Banking Company Act, and the rules and regulations lay down by the Bangladesh Bank.
These services include corporate Banking, Retail Banking, and Consumer Banking etc.
Within this short time the bank has already claimed a position among the top ranked banks
in our country through ensuring high profile management, experienced, dedicated and
skilled employees, and a whole lot of hard works. It has adopted the CAMEL rating,
BASEL II and all other international requirements. It is always responding to technological
enhancements and developments.
The introduction of ATM in March 2008 and Internet Banking in 2009 ushered a new era
and prime Bank is now wed poised towards the expansion of alternative delivery across
Bangladesh. Prime Bank is one of the most renowned names among the well performing
banks in the banking industry and it is continuously working hard to hold its position in the
market as the leader through providing top class services.
2.2Principle Activities of the Bank:
The principle activities of the bank are banking and related businesses. These activities
As an intern student of the University of Liberal Arts Bangladesh [ULAB], I have initiated a research study on the “Borrowers’ Perception on Prime Bank Limited”. I want to assess the Loan satisfaction level of customer. Your response & co-operation will enable me to identify the major factors behind customer Loan satisfaction in Prime Bank Limited. Thank you in advance for your cordial participation.
IF ASKED: This survey will take approximately 10 - 15 minutes. You have been selected at random, and I guarantee your identity will be held
in confidential and the answers you provide with will remain totally anonymous.
You can refuse to answer any of the questions. The results will be used for academic purpose only.
1. In which Branch do you have an account?
Name of the Branch: ____________________________
2. In which area is it located?
Area:_________________________________________
3. Type of account –
Current Fixed Savings
4. How many times do you go to the bank in a week?
2-3 times 4-6 times 7-8 times
5. How do you know about this bank?
TV Newspaper Internet Radio
Relatives Others
You will now be given a series of statements regarding your evaluation of Customer Satisfaction. Please indicate the extent to which you agree or disagree with the statement using a “7 point scale” where “7” indicates your strong agreement, “6 & 5” indicates normally agreement, “4 & 3” indicates neutral, “2” indicates normally disagreement & “1” indicates your strong disagreement. You may select any number between 1 & 7 to
38 | P a g e
indicate the extent of your agreement. You may also choose “DK” [Don’t Know] or N/A [Not applicable]. There is no right or wrong answer. Please answer all the questions considering the prime bank limited that you chose in
“Question 6”Sl No
Statement Strongly agree
Strongly Disagree
DK N/A
1. You know about the Loan Products of PBL
7 6 5 4 3 2 1
2. You have availed of any Loan from PBL
7 6 5 4 3 2 1
3. It (Loan) took to procedure long time 7 6 5 4 3 2 14. Charges/Processing fee is reasonable 7 6 5 4 3 2 15. Your tenure to pay the loan and the
installment amount is well7 6 5 4 3 2 1
6. You are paying the loan installment regularly
7 6 5 4 3 2 1
7. If anyone cannot pay installment regularly then actions have been taken by the bank
7 6 5 4 3 2 1
8. Collateral requirements are reasonable
7 6 5 4 3 2 1
9. Loan covenants 7 6 5 4 3 2 110. PBL loan packages are better than
from other banks7 6 5 4 3 2 1
11. PBL loans are more attractive from non-banks
7 6 5 4 3 2 1
12. Loan Maturity is perfect 7 6 5 4 3 2 113. Nature of Loan is adequately
mentioned in the product list of PBL7 6 5 4 3 2 1
14. PBL has competitive advantage over its competitors
7 6 5 4 3 2 1
15. You are satisfied with their service of each desk
7 6 5 4 3 2 1
16. PBL has always notified any change of terms and conditions or even interest rates
7 6 5 4 3 2 1
17. If there is any objection, you get quick response from the PBL
7 6 5 4 3 2 1
18. Behavior of the employees are friendly
7 6 5 4 3 2 1
19. You are satisfied with the loan from PBL
7 6 5 4 3 2 1
39 | P a g e
Age: 18-23 24-35 36-50 50+
Gender: Male Female
Married: Yes No
Education: Primary Secondary Higher Secondary
Bachelors Masters PHD
Occupation: Student Service Business Others
Occupation sector: Govt. Private NGO Others
Which residential area do you live in - ______________________________________________________________________________________________________________________________________________________
What’s your opinion to improve the services of Prime Bank? If any – ____________________________________________________________________________________________________________________________________________________________
Thank you for your kind co-operation and sacrifice
40 | P a g e
5.2 Appendix:
5.2.1 Ratio analysis information of Prime Bank Limited and AB