Eastern Bank Ltd

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Consumer Banking: A Study on Eastern Bank Limited of Bangladesh

About Eastern Bank Ltd

The leading private sector bank in Bangladesh offering full rang of personal, corporate, international trade, foreign exchange, and lease finance and capital market service.

Eastern Bank Limited is the preferred choice in banking for friendly and personalized services, cutting edge technology, tailored solutions for business needs, global reach in trade and commerce and high yield on investments, assuring Excellence in Banking Services VISION:

To become the bank of choice by transforming the way we do business and developing a truly unique financial institution that delivers superior growth and financial performance and are the most recognizable brand in the financial services in Bangladesh

MISSION:

We will deliver service excellence to all our customers, both internal and external. We will constantly challenge our systems, procedures and training to maintain a

cohesive and professional team in order to achieve service excellence. We will create an enabling environment and embrace a team-based culture where

people will excel. We will ensure to maximize shareholder's value.

VALUES:

OpennessWe share the business plan.We encourage two way communications.We recognize achievements, celebrate results.

TrustWe care for each other.We share learning/knowledge.We empower our people.

CommitmentWe know our road map.

We believe in 'continuous improvement'.We do not wait to be

IntegrityWe say what we believe in.We respect every relationship.We do not abuse information power.

Service excellenceWe passionately drive customer delight.We use customer satisfaction to accelerate growth.We believe in change to bring in timely solutions

Responsible corporate citizenWe conform to all laws, rules, norms, sentiments and values of the land.We are tax-abiding citizen.We promote protection of the environment for our children.

Strategic Priority: Significantly improve customer satisfaction Provide more value to shareholders. Repositioning Consumer Banking. Further diversification of Corporate Banking portfolio with special focus on 'Emerging Corporate'. Drive growth in SMEs. Further strengthening compliance Culture in the organization.

EBL kept its steady progress in 2007 also despite odds and sluggish economic environment in both national & international arena. We have been able to cope with the challenges of 2007 and achieve the desired target. We have made an operating profit growth of 37.72 percent in 2007 amounting to BDT 1,870.40 million. Board recommended Stock Dividend @ 34% for the year 2007. Also recommended Rights Issue @ 2:1 (50%) at par subject to approval from the regulatory authorities. Ebl at A Glance 2003 – 2007:

About Consumer Banking Of Ebl:

In the line with goal congruence and overall strategy EBL consumer banking continued to put thrust on deposit mobilization at reasonable rate. Expending consumer loan is under cautious surveillance due to 5 percent provisioning slap. Despite having the increased provisioning requirement imposed by central bank. Opted to adopt a conservative loan growth strategy for consumer banking instead of putting a stop. As the consumer loan portfolio reaches a reasonable size few years down the road. The impact of incremental provisioning will be offset by the income the portfolio will generate. As the major provider of funds within the bank, Consumer did and will continue to support asset growth of corporate and SME business

.it contributes 58 percent deposit and 12 percent of the loan portfolio of EBL as on year-end 2007.

Consumer Banking Products of EBL: Consumer banking of eastern bank Ltd. Offer different kinds of loan products. These are given bellow:

Consumer Banking Products (LOAN)

1. EBL Jibandhara Loan2. EBL Utshab 3. EBL Fast Cash4. EBL Fast Loan5. EBL Executive Loan6. EBL Auto Loan7. EBL Traveloan8. EBL Parseloan9. EBL Education Finance Pack

Consumer Banking Product (DEPOSIT)Consumer banking of eastern bank Ltd. Offer different kinds of loan products. These are given bellow:

1. EBL Interesting Account2. EBL Campus Account3. EBL High Performance Account4. EBL Repeat5. EBL Confidence

Consumer Banking Product (CARDS)EBL also offer some kinds of cards to its customer. Such as

1. Credit Card2. Life Style Card3. Cool Card

Product of Consumer Banking

NSUMER BANKING PRODUCT (LOAN):

Now I tried to discuss about consumer banking product of EBL.1. EBL Jibandhara Loan

Features1. Loan Amount ranges from BDT 50,000 to BDT 1,000,000 (or 12 times of gross

salary, whichever is lower).2. Repayment tenure of 12, 24, 36, 48 or 60 months.3. Payment option available starting after minimum 6 months of disbursement of loan4. Early full and final settelment allowed.5. No security required.6. No hidden charges.

Eligibility1. Age: Minimum 22 years, Maximum 60 Years2. Professional Experience: 3. Salaried Executives: 1 year of experience4. Self employed Professionals: 2 years of experience5. Minimum monthly income: 6. Salaried Executives: minimum BDT 15,000 / month7. Self employed Professionals: minimum BDT 20,000 / month

2. EBL Utshab Loan

Features1. Loan amount ranging from minimum BDT 50,000 to maximum BDT 150,000 (or 10

times of gross monthly income, whichever is lower)2. Repayment tenure of 12,24 or 36 months3. Absolutely no processing fees4. Special discount in interest rate

Eligibility1. Age: Minimum 22 years, Maximum 60 Years2. Professional Experience:

Salaried Executives: 1 year of experience with minimum 6 months employment with current employer

Self employed Professionals: 1 years practice in the profession

Business: 2 years involvement in current business

3. Minimum monthly income: 4. Salaried Executives: minimum BDT 15,000 / month5. Self employed Professionals & Businessmen: minimum BDT 20,000 / month

3. EBL Fast Cash

Features1. Revolving credit facility2. Pre-determined amount of credit from current account3. Interest charged only for the amount have drawn4. Interest charged on quarterly basis5. Repayment at anytime during the stipulated period6. Option of renewal at request

Eligibility1. Any individual having an FD or other securities like Wage Earner’s Bond, ICB unit

certificate etc is eligible to apply

4. EBL Fast LoanEBL Fast Loan is personal short-term loan facility from Eastern Bank Limited. With this, one cans always choice to determine the repayment term. A fast way to meet financial needs.

Features

1. 100% cash secured loan2. Repayment tenure of 12, 24, or 36 months3. Competitive interest rates4. Shortest possible processing time5. Early full and final settlement allowed

Eligibility1. Any individual having an FD or other securities like Wage Earner’s Bond, ICB unit

certificate etc is eligible to apply.

5. EBL Executive LoanFeatures

1. Loan amount ranging from minimum BDT 50,000 to maximum BDT 1,000,000 or 6 times of gross salary, whichever is lower (in case of govt. officials, the loan amount starts from BDT 30,000)

2. Repayment tenure of 12,24 or 36 months3. Early full and final settlement allowed

Eligibility1. Any Salaried Executive can apply for the loan2. Age: Minimum 23 years, Maximum 60 Years3. Professional Experience: 4. 5 years of experience with minimum 2 years of continuous employment with current

employer5. Minimum monthly income:

BDT Tk. 15,000 for Executives of any private organization BDT Tk. 10,000 for government officials

Equal Monthly Installments Sample:

Loan amount No of installments12 24 36

50,000 4,513 2,425 1,734100,000 9,026 4,849 3,467200,000 18,052 9,698 6,934300,000 27,078 14,546 10,400500,000 45,130 24,244 17,333750,000 67,694 36,365 25,9991,000,000 90,259 48,487 34,666

6. EBL Auto LoanFeatures

1. Loan amount ranges from BDT 350,000 to BDT 2,000,000 (upto 100% for brand new car and 70% for reconditional car)

2. Competitive interest rates3. Repayment tenure of 12,24,36,48 or 60 months4. You have the option of pre-paying your loan after a minimum of 6 months of loan

disbursement

5. Early full and final settlement allowed

Eligibility1. Age: Minimum 22 years, Maximum 60 Years2. Professional Experience: 3. Salaried Executives: 3 year of experience4. Self employed Professional: 2 years practice5. Business: 2 years experience6. Minimum monthly income: 7. Minimum monthly income: BDT Tk. 30,000/month

Equal Monthly Installments Sample:

Loan amount

No of installments

12 24 36 48 60350,000 31,426 16,805 11,963 9,565 8,144500,000 44,894 24,007 17,089 13,664 11,635750,000 67,341 36,010 25,634 20,495 17,4521,000,000 89,788 48,013 34,178 27,327 23,269

1,500,000 134,681 72,020 51,267 40,990 34,903

2,000,000 179,575 96,026 68,356 54,653 46,537

6. EBL Traveloan

TraveLoan – Secured1. Loan amount 90% of the security deposit (EBL FD)2. Easy Monthly Installment Repayment - 12 months to 60 months3. Loan amount Tk. 50,000 - Tk. 500,0004. Processing fee - 1% of the loan amount or Tk. 2,000 whichever is higher5. Advance/Partial prepayment allowed6. Loan disbursement directly to Customer Account7. No personal guarantee required8. 50% processing fee waiver for EBL Dual Currency Credit Cardholder9. 50% Dual Currency Credit Card Issuance fee waiver for TraveLoan borrowers

TraveLoan – Unsecured1. Easy Monthly Installment Repayment - 12 months to 60 months2. Loan amount Tk. 50,000 - Tk. 500,000 or 10 times of gross monthly income,

whichever is lower3. Competitive interest rate.4. Processing fee - 1% of the loan amount or Tk. 2,000 whichever is higher5. Advance/Partial prepayment allowed6. 50% processing fee waiver for EBL Dual Currency Credit Cardholder. 7. 50% Dual Currency Credit Card Issuance fee waiver for TraveLoan borrowers

Disbursement1. Secured

Directly to Customer Account with EBL2. Unsecured Loan less than or equivalent to Tk. 200,000 to Customer Account with EBL.

Additional Supporting Documents1. Valid Passport Copy (Mandatory)2. Valid Visa of traveling country (for unsecured loan only)3. Travel Quotation from travel agent (for unsecured loan only)

8. EBL ParseloanThere must have been many occasions when you have had some money and needed some more for some specific purpose. EBL Parseloan is the right Product for you, where you give some and we share the rest with you - making life simple for you.

Features1. Any purpose personal loan facility2. Loan amount BDT 2,00,000 to BDT 10,00,000 or 12 times of Applicant's Gross

Monthly Income3. EMI based loan repayment facility Repayment Tenure - 12 months to 60 months4. Available in two versions:

EBL Parseloan 30 - where you provide 30% of the applied loan amount in the form of EBL FD; for example, if you need Tk. 10 lac loan, then you need to provide BDT 3 lac as security.

EBL Parseloan 50 - where you provide 50% of the applied loan amount in the form of EBL FD; for example, if you need Tk. 10 lac loan, then you need to provide BDT 5 lac as security.

5. Loan facility for both fresh applications and take-over purpose6. Attactive interest on security amount (FD) making the total loan cost minimal7. Attractive Loan Interest Rates:

Annual Interest Rate for Fresh Loan Applicants

EBL Parseloan 50

EBL Parseloan 30

16.5% 17.5%

Annual Interest Rate for Take-over Loans 16% 17%

Processing Fee:1. Fresh Loans: 1% of the loan amount2. Take-over Loans: 0.25% of the loan amount Partial Pre-payment and early final

settlement options available3. One Personal Guarantor required

Eligibility1. Salaried Executives: Minimum 1 year of service and BDT 15,000 monthly income.

2. Professionals/Self Employed: Minimum 1 year of experience and BDT 20,000 monthly income

3. Businessmen: Minimum 2 years in business and BDT 20,000 monthly income

9. EBL Education Finance PackAt EBL developed the Education Finance Pack with three types of loan facilities so that anyone can select matching one need. Education Loan covers the entire cost of child’s education to help to send children for higher education abroad. So be it for home or abroad, for child – EBL Education Finance Pack is always beside the customer.

EduLoan Unsecured – Education Loan without Security Deposit1. EMI based loan facility2. Maximum loan amount BDT 10,00,000 or 10 times of Gross Monthly Income of the

applicant3. Loan amount up to 80% of the summation of admission fee, tuition fee, semester fee,

other fees as stated by the educational institutions, living/lodging expenses and traveling expense. Total expense estimation needs to be submitted by the applicant with supporting documents.

4. Processing fee – 1.5% of the Loan amount5. Repayment tenor: 12 – 60 months6. Advance / partial pre payment is allowed7. Interest Rate: 18%8. Student File services available

Disbursement:

1. Study in Bangladesh: Initial admission fee & initial semester/tuition fee to be remitted directly to the institutions through Pay Order.

2. Study Abroad: Initial admission and initial semester/tuition to be remitted abroad through EBL Smart Student File. Payment for traveling expenses to be reimbursed through Pay Order favoring the travel agent.

EduLoan Secured - Education Loan with Security Deposit1. EMI based loan facility2. Loan amount is 95% of the security deposit (EBL FD)3. Processing fee – 1% of the Loan amount or BDT 10,000, whichever is higher4. Repayment tenor: 12 – 60 months5. Advance / partial pre payment is allowed6. Within same day processing7. No personal guarantee required8. Interest Rate: FD+3%9. Student File services available

EduLine – Credit Facility against Security Deposit1. Loan amount is 95% of the security deposit2. Advance / partial pre payment is allowed3. Interest against utilization only Within same day processing4. Processing fee – 1% of the Loan amount or Tk. 2,000, whichever is higher5. No personal guarantee required6. Interest Rate: FD+3%

7. Student File services available

3.1.1 Loan by Product: Budget vs. actual:

Here budget and actual figure of the loan are given below:

Amount In Crore Taka

Product Outstanding as on 31.12.2007

Destination on 31.12.2008

Projected o/s. as on 30.06.2008.

Actual o/s. as on 30.06.2008

Budget variance

Variance in %

1 2 3={1+(2-1)/2*4} 4 5 6

Fast cash 90.85 102.64 94.72 83.16 (11.56) (12%)

Debit line 3.81 3.81 3.82 3.63 (0.19) (5)

SOD 1.08 1.08 1.09 0.49 (0.60) (55)

Eduline 0.00 11.11 3.65 0.55 (3.10) (85)

A. CNB OD 95.74 118.64 103.28 87.83 (15.45) (15)

Jibon dhara 148.87 279.11 190.24 154.15 (36.09) (19)

Utshab loan 10.28 24.65 14.84 9.16 (5.68) (38)

Car loan 60.16 97.80 72.02 57.39 (14.63) (20)

Fast loan 12.58 26.13 16.86 20.74 3.88 23

Executive L 5.44 11.65 7.40 5.06 (2.34) (32)

Edu loan 0.00 5.16 1.65 4.63 2.98 180.91

Home loan 0.00 34.27 10.96 0.00 (10.96) (100)

Travel loan 0.00 2.59 0.83 0.00 (0.83) (100)

B. CNB EMIL 237.33 481.36 314.80 251.12 (63.68) (20)

Total (A+B) 333.07 600.00 418.08 338.96 (79.12) (19)

3.1.2 Growth:

Here I compare the product growth in year 2007 and 2008. And I also find out the growth of product increase and decrease.

Loan by product Amount In Crore Taka

Product

2007 2008Incr/Decr

Balance as on 31.12.2006


Growth(Jan to June)



Growth(Jan to June)

Fast cash 88.62 74.88 (13.74) 90.85 83.16 (7.69) 6.05Debit line 3.73 3.98 0.25 3.81 3.63 (0.18) (0.43)SOD 7.36 3.63 (3.73) 1.08 0.49 (0.59) 3.14Eduline 0.00 0.00 0.00 0.00 055 0.55 0.55A. CNB OD 99.71 82.49 (17.22) 95.74 87.83 (7.91) 9.31Jibandhara 127.75 134.13 6.38 148.87 154.15 5.28 (1.10)Utshab loan 11.15 10.49 (0.66) 10.28 9.16 (1.12) (0.46)Car loan 62.52 61.22 (1.30) 60.16 57.39 (2.77) (1.47)Fast loan 6.17 9.74 3.57 12.58 20.74 8.16 4.59Executive L 7.89 6.80 (1.09) 5.44 5.06 (0.38) 0.71Edu loan 0.00 0.00 0.00 0.00 4.63 4.63 4.63Home loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00Travel loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00B.CNBEMIL 215.48 222.38 6.90 0.00 251.12 13.79 6.89Total (A+B) 315.19 304.87 (10.32) 333.07 338.96 5.89 16.21

3.1.2.1 GRAPHICAL PRESENTATION:In this graph I also tried to show the graphical presentation of the product growth.

GROWTH OF THE CONSUMER BANKING PRODUCT LOAN

From the following graph we find that in 2008 the growth of jibandhara, utshab loan, car loan is lower than the growth of 2007. On the other hand in 2008 the growth of fast loan, executive loan is higher than the growth of 2007 where education loan is newly launch in 2008. If we compare the year 2007 and 2008 we see that there are some reasons affect the growth of the product. I tried to identify some reasons. These are given below:

During this period the board of management changed. New management formed. As a result during the period of January to June management did not able to focus the product properly.

High interest rate is one of the major affect of the growth of consumer banking product loan in comparison with the competitor bank.

In 2008 efficient employees were jumped other bank because of salary differentiation with the competitor bank.

The environmental problem is another reasons. Such as government policy, income level of the consumer etc. affect the growth of the loan product.

Inefficiency of Sales team, they did not focus the loan product properly. There were a large number of sales team who were very efficient in sales jumped into Dhaka bank offered high salary and facilities.

CONSUMER BANKING PRODUCT (DEPOSIT):

1. EBL Campus - first time in Bangladesh a tailor made banking pack for students.Campus Account: Under “EBL Campus”, yet another wonderful product that directly takes you into the rewarding world of general banking. It’s your very own, very special savings account with no hidden charges or restrictions, while giving you very attractive interest on daily balance, Plus a super-smart plastic in your wallet!

Features1. Interest bearing deposit account2. Interest calculated on the basis of daily balance3. No hidden charges or restrictions apply with regard to interest payment4. No standing in bank branch queues for withdrawal of money5. Leads into the smart ... modern world of electronic banking- ATMs, POS terminals,

Kiosks etc.Eligibility

1. You need to be a student2. Minimum age 18 years3. Valid identification document (generally student ID Card) required for opening the

accountFeature

1. Interest calculated on daily balance2. Interest is credited to account every month3. Competitive interest rate4. Unlimited cash withdrawal5. Available in all EBL Branches6. No extra terms and conditions

Eligibility1. Minimum Age: 18 years2. Citizen of Bangladesh

EBL high performance account is committed to make a difference. You will see your money grow everyday. This account has the security and growth of a Savings account as well as the convenience of a current account-making things easier for you.Features

1. Interest calculated on a daily balance2. Minimum balance required: BDT 20,0003. Unlimited cash withdrawal4. Highest interest rate compared to other similar accounts5. Available in all branches of EBL 6. No extra terms and conditions apply7. Interest is paid twice a year

Eligibility1. Minimum age: 18 years2. Citizen of Bangladesh

4. EBL Confidence

The name of the scheme is EBL ConfidenceAny citizen of Bangladesh can open this account. This account can be opened in the name of an individual only.

Under the scheme account(s) can be opened for a period of 3 (36 Monthly Installments) / 5 (60 Monthly Installments) / 7 (84 monthly installments) / 10 (120 Monthly Installments) years in any denomination at multiple of Tk. 500.00 per month but not exceeding Tk. 20,000.00 per month.

Depositor can choose any denomination of deposit per month at the time of opening the scheme, which cannot be changed later on.

The rates of interest are: for 3 years: 9.00% per annum; for 5 years: 9.50% per annum; for 7 years: 10.00% per annum; for 10 years: 10.50% per annum.

Any benefit from EBL confidence mat come under purview of Income Tax of any other levy as decided by the government of Bangladesh. Monthly installments will be automatically realized from the Customer’s Personal EBL account linked with EBL Confidence.

Deduction of the monthly installments will start from the day of opening EBL Confidence and all subsequent installments will be deducted on the same day of following months. Sufficing available/cleared fund must be kept in the linked account on or within next three days of due date to collect the deposits.

If sufficient balance (full value of installment) is not available in the corresponding account for realizing monthly installment in time, Account Holder will have to pay 2% on the installment arrear(s) as penalty.

In the event of failure to pay monthly installment(s) on or within next three days of the due date, it will be the sole responsibility of the EBL confidence Account Holder to settle the arrear installment(s) before or along with the next deposit due through a written instruction to EBL.

If any monthly installment remains unpaid for four consecutive months, the account will be closed automatically.

In case of premature closure of the account Tk. 300 (Taka three Hundred Only) will be charged as closing charge.

In case of premature closure, the following will be applicable;

a. Less than 1 year: self deposited amount without interest; b. More than 1 year but less than 3 years: self deposited amount plus interest @ prevailing savings account interest rate; c. More than 3 years but less than 5 years: matured value of 3 years plus interest @ prevailing savings account interest rate on self deposited amount for fraction period; d. More than 5 years but less than 7 years: matured value of 5 years plus interest @ prevailing savings Account interest rate on self deposited amount for fraction period; e. More than 7 years but less than 10 years: matured value of 7 years plus interest @ prevailing savings account interest rate on self deposited amount for fraction period.

If there is any loan in the name of the depositor with EBL, then EBL holds the right to adjust the loan amount from the deposit which has been deposited by the by the EBL confidence Account Holder for deposit under the scheme of EBL Confidence.

EBL Confidence depositor(s) can take 90% OD facility against deposited amount at bank’s prevailing lending rate after at least two years of this scheme.

These terms and conditions shall be governed by and construed in accordance with the laws of Bangladesh and the customer and the Bank is hereby irrevocably submit to the non-exclusive jurisdiction of the Courts of Bangladesh.

EBL reserved the right to change/alter/ratify the terms and conditions at any time without prior notice

Maturity Value TableInstallment Amount 3 years 5 years 7 years 10 years

Tk. 500 Tk. 20,730 Tk. 38,513 Tk. 60,979 Tk. 1,06,329Tk. 1,000 Tk. 41,461 Tk. 77,027 Tk. 1,21,958 Tk. 2,12,659Tk. 2,000 Tk. 82,922 Tk. 1,54,054 Tk. 2,43,916 Tk. 4,25,318Tk. 5,000 Tk. 2,07,306 Tk. 3,85,136 Tk. 6,09,791 Tk. 10,63,297Tk. 10,000 Tk. 4,14,613 Tk. 7,70,272 Tk. 12,19,583 Tk. 21,26,594Tk. 20,000 Tk. 8,29,227 Tk. 15,40,545 Tk. 24,39,166 Tk. 42,53,188

Note: In case of their installment, multiple of Tk. 500 & Tk. 1,000, will follow the matured value as specified in this table. For example, if installment is Tk. 2,5000 for 3 years tenor maturity value will be Tk. 20,730 X 5 times (Tk. 2,500/500) and if installment is Tk. 7,000 for 3 years tenor maturity value will be Tk 41,461 X 7 times (Tk. 7,000/1000).

3.2.1 Deposit by Product: Budget vs. Actual

Amount In Crore Taka

Product Balance as on 31.12.2007

Destination on 31.12.2008

Projected bal.as on 30.06.2008.

Actual bal.as on30.06.2008

Budget variance

Variance in %

1 2 3={1+(2-1)/2*4} 4 5 6

FDR 879.19 958.19 904.49 912.70 8.21 0.91%

HPA 232.63 342.63 267.85 238.74 (29.11) (11)

MDP & Confd 40.70 107.70 62.17 49.00 (13.17) (21)

Savings 266.41 391.41 306.44 265.46 (10.98) (13)

Current 37.76 47.76 40.97 37.89 (3.08) (8)

MIP & Repeat 167.53 220.53 184.52 223.00 38.48 21

STD 2.88 4.18 3.29 2.58 (0.71) (22)

Campus 0.80 1.80 1.12 0.87 (0.25) (23)

Interesting 46.80 94.80 62.17 52.78 (9.39) (15)

Total 1674.70 2169.00 1833.02 1789.01 (50.01) (3)

Deposit Mix: Point-To-Point

Deposit mix are shown by the graph on 30.06.2008

3.2.2 GROWTH:Here we compared the product growth in year 2007 and 2008. And we also found out the growth of product increase and decrease.

Deposit growth By Product Amount In Crore Taka

Product 2007 2008 Increase/DecreaseBalance

as on31.12.06


Growth (Jan to June)



Growth (Jan to June)

FDR 896.91 919.33 22.42 879.19 912.70 33.51 11.09HPA 234.96 215.88 (19.08) 232.63 238.74 6.11 25.19MDP 24.46 29.29 4.83 37.61 40.84 3.23 (1.60)

Savings 239.03 237.14 (1.89) 266.41 265.46 (0.95) 0.94Current 32.29 31.37 (0.02) 37.76 37.89 0.13 1.05MIP 55.60 46.58 (9.02) 30.96 29.54 (1.42) 7.60

STD 3.42 2.25 (1.17) 2.88 2.58 (0.30) 0.87Campus 0.23 0.45 0.22 0.80 0.87 0.07 (0.15)

Interesting 16.69 32.97 16.28 46.80 52.78 5.98 (10.30)Repeat 0.00 0.00 0.00 136.57 193.46 56.89 56.89Confidence 0.00 0.00 0.00 3.09 8.16 5.07 5.07Total 1503.59 1515.26 11.67 1674.70 1783.01 108.31 96.64

3.2.2.1 GRAPHICAL PRESENTATION:In this graph we also tried to show the graphical presentation of the deposit growth

GROWTH OF THE CONSUMER BANKING PROUCT (DEPOSIT)

From the following graph we find that in 2008 the growth of FDR, HPA, Savings, Current MIP, STD, Repeat, Confidence is higher than the growth of 2007.

EBL provided High interest rate on deposit is one of the major impacts of the growth of consumer banking product FDR, HPA, Savings, MIP, STD, Repeat, Confidence in comparison with the competitor bank.

Service quality is another important aspect of EBL. As a result EBL create a center of attention the customer to deposit the money.

EBL is also able to focus the FDR, HPA, Savings, MIP, STD, Repeat, and Confidence properly.

EBL Repeat and confidence newly introduce. Therefore EBL take steps to establish the new product like proper advertising and able to educate the customer properly about the EBL Repeat and EBL confidence.

On the other hand in 2008 the growth of MDP, Campus, and Interesting is lower than the growth of 2007.

As a major product MDP, Campus, and Interesting did not perform well in 2008. Because EBL repeat and EBL confidence were newly launch in 2008 as a result EBL tried to highlight these product and MDP, Campus, and Interesting were hide in 2008 as a old product. Lower interest rate of MDP, Campus, and Interesting is one of the major affect of the growth of these products in comparison with the competitor bank.

CONSUMER BANKING PRODUCT (CARDS):

1. Credit Cards:Introducing EBL SIMPLE Credit Cards. The first of its kind, a complete Credit Card with every benefit possible, and still offering you something extra. At work or leisure, experience the convenience of a Card that does everything with style and honesty.

When you become a member of EBL SIMPLE Card Services family, you become a part of an exclusive club – entitled to first class financial advice, priority treatment and a growing range of courtesy services.

We understand the value of your money. That is why we aim to give you the highest benefit at a minimum cost. Choose the card type that matches your requirement and experience the difference.

Experience EBL Credit Cards. Experience SIMPLE.

Owning a Credit Card is a basic right of a Qualified Financial Services Consumer – and there is no strong reason to pay fee every year for that right.

At EBL, we have shown respect to this concept. To avail EBL Credit Card services, you need to pay the Issuance/Joining/Subscription/ Annual Fee only once. After that there is no annual fee for you as long as you transact at least 18 times in a whole year. It is a lifetime Card. As per market standard, an average cardholder uses his/her card almost 24 times annually. So, without doing anything extra - you can have the free renewal option – for the following year.Balance TransferWe are happy to introduce Balance Transfer for the first time in Bangladesh.If you have Other Bank Credit Card(s), you have the option to transfer your current outstanding balance at a much cheaper rate to your EBL Credit Card. This saves your money, time and gives you the convenience to manage all your expenses from one point.

We want to be your lifetime partner. That is why we care about your current outstanding amount. We are offering Balance Transfer (BT) @22% per annum. The standard market interest average of Bank Credit Card is 30%. We are offering you to switch your cards @8% less interest

Card ChequeThrough EBL Credit Card you can enjoy a full-fledged cheque book facility. You can make payment (account payee only) to any person or organization of your choice. This cheque book is useful with situation where you cannot use your credit card (e.g. tuition fees, rent, etc). We are offering the FIRST CHEQUEBOOK FREE. There is a charge for subsequent Chequebooks. EBL Credit Card is accepted at over 5,000 VISA merchant outlets around the country and over 24 million VISA outlets worldwide. You can use this Card for a wide range of products and services such as hotels, restaurants, airline & travel agents, shopping malls and departmental stores, hospitals and diagnostic centers, jewelers, electronics & computer shops, leather goods and shoe stores, mobile phone and internet service providers, fuel station and what not! This number is progressively on the rise. No matter wherever you are – with EBL Credit Cards, you will always have the purchase power.

With an EBL Credit Card in your wallet, you will not be strapped for cash ever again. You can withdraw cash up to 50% of your total credit limit 24-hours a day from any EBL ATM; or any VISA participating member bank ATMs across the country; or from any VISA ATMs worldwide. You do not need to worry of carrying cash anywhere – not even on a foreign trip when there is no one to give you hard cash at time of need. EBL Credit Cards shall always be with you.

Supplementary CardEBL Credit Card gives you the opportunity to share the benefits of your card with your dear ones by providing you supplementary cards. Being a primary cardholder, you have the option to set a spending limit for each of your supplementary cards. This is perfect for you if you are thinking of giving your Children their pocket money in a controlled way. You can easily set-up their spending limit and also have an eye on their spending behavior. All transactions on your supplementary card will separately be shown on your monthly statement.

Risk Assurance Program is a Double Benefit Insurance Plan for the EBL Credit Cardholders. The entire dues on the credit card in the event of death or permanent total disability of EBL credit cardholder will be waived and the cardholder or his/her family will receive equal amount to meet immediate expenses – under Risk Assurance Program. Very nominal charge will be applicable for this coverage. Cardholders can decide to cancel this program by sending a letter to us at any time.

We have collaborated with hundreds of vendors for giving the EBL Credit Card users a hefty discount on their products and services. The great discounts in turn allows you either to save money or shop more with the same amount you are spending now. Less or more – choice is yours. Spending was never been so great.

EBL Credit Card provides you a list of shops and outlets where using the card will entitle you to receive certain discount. We have chosen a large number of shops and retail outlets for the purpose. The printed guide comes with every details (i.e. shop name, address, discount value etc.) thus making your life easier.

Easy Installment Program of EBL Credit Card allows the cardholder to convert any retail transaction into an easy installment plan. You can purchase any high value product or service and make payments in equal monthly installments (EMIs). The program will be available shortly and we will notify you as soon as our network partners increase. Tentative program launching date January 1, 2008.

If you have an account with any Eastern Bank branch, you have the option of making the payment of your monthly credit statement (either the minimum amount due or the total amount due) directly through your bank account.

Convenient Payment SystemWhen you receive your bill, you need not pay the entire bill amount. You have the flexibility of selecting any of the following payment options:

1. Pay the total amount due. 2. Pay only the minimum amount due (5% of your total outstanding or BDT 500

whichever is higher for local card and for Dual card 5% of your total outstanding or USD 10 whichever is higher) and the balance can be carried forward to subsequent statements.

3. Pay any amount ranging from the minimum amount due to the total amount due.

One can plan payments conveniently, without creating any extra pressure on finances.

EBL cardholders can receive monthly statements via e-mail, completely free of cost. This is a fast, reliable and efficient service, which will minimize your paperwork and maximize convenience. Your Statement Mails or SMails can be delivered to more than one e-mail address (up to a maximum of three e-mail addresses). All you need to do is just filling up the form and we will do the rest. It’s all smile with SMail.

Your EBL Credit Card has your photograph and signature digitally imprinted on the Card. This provides you extra security at any of the merchant establishments. In fact, it can be used as a proof of identification, in the interest of your own security.

Global Emergency Assistance Service

When you travel abroad, please remember that you have the option of using the Global Emergency Assistance Services provided by VISA for our cardholders. These can be availed for: 1. Reporting lost/stolen credit cards, 2. Requesting for an emergency card replacement, 3. Emergency cash advance & 4. Miscellaneous enquiries. The toll free telephone numbers for accessing these emergency assistance Help lines are available in local telephone directories/yellow pages and other local listings in each country.

EBL Mobile AlertEBL Mobile Alert is a very simple, powerful and convenient way to know your Credit Card statement details instantly without any postal delays. As soon as you become an EBL Credit Cardholder, you automatically join in the EBL Mobile Alert service and get faster, reliable access to your Monthly Statement. Mobile alerts from EBL provides you with information on

your EBL Credit Card even when you are on the move. You would now no longer miss a payment or exhaust your credit limit without a warning. Once your statement is generated, we will notify you about the balance status with payment information. Life has never been so easier.

A special bonus plan that allows you to earn points every time you use your Card, Every Tk. 50 that you spend earns you 1 point. The redemption of reward points can be done against the products, services in the rewards catalogue. The enrollment is free. We are preparing the rewards listing and shall mail you the catalogue with program details as soon as it is launched.

Credit cards: Budget vs. Actual:

In this section we provided the budget and actual of credit cards and their variance. Amount In Crore Taka

Branch Card issued as at 31.12.2007

Destination as at 31.12.2008

Budget: cards issued as at 30.06.2008

Actual: cards issued as at 30.06.2008

Variance as at 30.06.2008

Variance in %

1 2 3 4 5 6 7

Branch 918 3606 1814 1165 (649) (36)DST -CNB 633 3345 1537 705 (832) (54)

DST-Cards 2377 23977 9577 4792 (4785) (50)

TOTAL 3928 30928 12928 6662 (6266) (48%)

Here EBL prepared the budget and actual of credit cards for June 2008.here credit cards plan are shown into three categories. These are branch wise, direct sales team consumer banking and direct sales team cards. From the plan presentation we see that branch, DST-CNB, and DST-cards shows the negative variance. This means that three groups did not meet the target at the dated 30.06.2008. We tried to find out the some reasons behind this. This is given below:

1. Credit card is new product for EBL. As a result planner did not guess the actual estimate.

2. Sales team was not more efficient for sales the credit cards.3. Customers did not aware the EBL credit cards as a new product.

2. Cool CardThis VISA electron debit card specially designs for students.

Features1. A global branded VISA Electron Debit Card tagged with Campus Accolunt

maintained at EBL2. Round the clock access to a large ATM network (over 85 Q-Cash & VISA ATMs

within Bangladesh) and a larger network of POS terminals at different shops3. Discount on purchases available from many retail outlets/shops4. Cheaper than EBL VISA Election Debit Card (available for general customers)

Eligibility1. Need to be a student2. Need to have an EBL Campus Account opened with EBL3. Minimum age: 18 years

3.3.2 Cool Cards: Budget vs. Actual: Amount In Crore Taka

Branch Card issued as at 31.12.2007





Variance in %

Chittagong ClusterStation Road 24 54 34 25 (9) 26

O R Nizam 43 103 63 45 (18) 29

Jubilee road 25 60 37 25 (12) 32

Agrbad 30 95 52 30 (22) 42

Chandgaon 0 30 10 1 (9) 90

Panchlaish 0 30 10 0 (10) 100

Raozan 0 10 3 0 (3) 100

Khatungonj 0 12 4 0 (4) 100

4. Life Style CardEBL campus first time in Bangladesh a tailor made banking pack for students. This is under EBL campus. This is international branded prepaid card that suit the lifestyle of student.

Features1. A global branded VISA prepaid card2. Reload able3. Round the clock access to large ATM network (over 85 Q-cash & VISA ATMs within

Bangladesh) and a large network of POS terminals at different shops4. Discount on purchases available from many retail shops/outlets5. Having a bank account with EBL is not required

Eligibility

1. Minimum age: 18 years

3.3.3 Lifestyle Cards: Budget vs. Actual:

Amount In Crore TakaBranch Card

issued as at 31.12.2007





Variance in %

Chittagong Cluster

Khatungonj 264 472 333 266 (67) (20)

Station Road 354 770 493 371 (122) (25)

Agrbad 421 941 594 439 (155) (26)

OR Nizam 36 831 519 376 (143) (28)

Jubilee Road 336 804 492 347 (145) (29)

Raozan 0 208 69 15 (54) (78)

Chandgaon 0 416 139 0 (139) (100)

Panchlaish 0 416 139 0 (139) (100)

Lifestyle card is especially for the student. This is one of the important products of consumer banking of EBL. From the graphical presentation of lifestyle card, we easily understand the position of Agrabad branch of the lifestyle card from the Chittagong cluster. From the graph we see that budget of cards for Agrabad Br. is 594 and the actual cards issued for Agrabad Br. are 439. And the variance is 155. If Agrabad Br. tries to reach the target they have to ensure the sales. They have to motivate the students. The students who do not know about the lifestyle card they have to acknowledge about the product.

Analysis of Findings According to Consumer Banking of EBL

4.1 Problems of Consumer Banking of EBL:Consumer banking is one of the important part of Eastern Bank Ltd. EBL offer some kinds of consumer banking product for its customer. EBL offer the loan product, deposit product, and some kinds of cards. From the analysis of the consumer-banking product of EBL, we tried to identify some findings. In this chapter we tried to discuss about the findings:

For customer EBL consumer banking offers eight kinds of loan product. Jibandhara loan, Utshab loan, Car loan, Fast loan are the old product and Executive Loan, Education loan, Home loan, and Travel loan are the new product. But all products are not well established.

For customer EBL consumers banking offer five kinds of deposit product. Interesting, Campus, High Performance Account, are the old product and Confidence, Repeat, are the new product. As a new product the performance of confidence and repeat is well but campus is not comparatively well established.

From the growth analysis of the deposit product of EBL consumer banking, we find that the growth of Interesting, Confidence, High Performance Account and Repeat positively increased.

From the growth analysis of the loan product of EBL consumer banking, we find that the growth of Jibandhara, Fast loan, and Education loan positively increased in 2008 (Jan to April). But the growth of Utshab loan, Car loan, Executive Loan decreased.

From the credit cards budget and actual analysis, we find that branch, DST- CNB, DST-cards did not meet the budget.

From the analysis of the budget and actual of the cool cards and life style cards, we also see that branch did not meet the target. So we can say that these two cards did not perform well.

Most of the customer are not aware the about the product because of lacking of advertisement.

Lengthy Process of loan is one of the difficulties of consumer banking.

EBL is fully online system but sometimes system failed for long time that is one of the major problems of consumer banking.

Insufficient employees are other major problems of EBL consumer banking. CHAPTER 5

Recommendation and Conclusion

The branch should try to ensure quality-banking service and create a customer mania culture of EBL that will differ from others bank.

EBL is provided online banking so it should ensure strong server connection. The process of consumer banking service should easy and that will help to build

relationship with the customer in a easy way. To increase the more service the branch should recruit sufficient employee in the

consumer banking of EBL. The office space of the branch should increase. Recreation facilities for the office staff during office hour should increase to reduce

the monotony. The branch should increase in a good business location. Technological advancement should develop in a competitive banking environment.

Conclusion:

After completion of the whole project it can be realized that consumer banking is one of the major department of EBL, which has great contribution of the bank profit. EBL has strong customer base, financial capability, qualified workforce, international exposure and good reputation. With the ambition of becoming the bank of choice for clientele, it’s just natural for EBL to pitch its customer service benchmarks high, at a level where the local standards are far exceeded and global standards are embraced and met.

The picture of EBL consumer banking of 2007 was different. It was a year of slower loan growth, conservative deposit. In spite of this unfavorable business climate, EBL has made progress in delivering prompt quality service, curtailing unnecessary expenditures, facilitating better loan portfolio and ensuring effective control and Compliance.

EBL consumer banking is committed to focus all its energy on customer. It should create customer mania culture to develop the consumer banking in competitive environment.