Part-1: INTRODUCTION

Therefore, like any other “Business School “of any other University, an opportunity is also

offered by North South University (Faculty of School of Business) for its potential business

graduates to get three months practical experience, which is known is as BUS-498 “Internship

Program”. Internship report is an important part of an Internship Program. This Internship

Program has been assigned to me during my internship period at Prime Bank Limited, Mirpur-1

Branch. My honorable faculty advisor Mr. Md. Siddique Hossain has given me approval to do

this particular report on the topic of “Relationship of Prime Bank Limited’s Customers

involvement and their satisfaction level.

The goal is to identify the main reasons of client dissatisfaction and find its relationship with a

client’s level of knowledge about the bank’s services. In order to accomplish my goal I have

identified one important observation and that is the relationship between clients’ knowledge on

the services provided by the bank and the actual services that are available by the bank for them.

Disparity in such cases often results in the most common forms of client dissatisfaction.

Satisfaction of these services depends on many variables but most importantly on two factors:

1. The level of service provided to clients as promised by the bank.

2. And the level of services expected by the clients.

I have also tried to find out the following aspects:

Finding out about the clients

Clients level of involvement with the bank

How updated clients are with bank’s services.

1.1 Objective

1.0 Origin of the Report

This study will establish that there is a basis why expectations and goals need to be aligned and

why the misalignment causes unsatisfactory results. The goal of PBL is to satisfy its clients;

therefore the bank needs to communicate to its clients about the services available to them by

PBL.

On the other hand the clients need to be aware of what the bank is communicating to them. If the

clients choose to remain uninvolved with their bank then their level of expectation will be very

difficult to match as there would be no basis on those expectations.

Client dissatisfaction arises based on their expectations supported by their lack of staying

updated with information as provided by the bank.

Hence the study is important as it will prove that when it comes to client satisfaction the clients

are also as responsible in staying aware and updated on the banking services as well as the bank

is responsible to deliver services as promised.

Hypothesis

With reference to all the above, therefore the hypotheses of this report are:

The level of customers’ satisfaction about the services provided by PBL is positively

related to the level of customers’ exposure about the bank’s service packages.

Customer expectation of service matches bank’s service promise.

PBL’s Customer involvement with the bank is high.

It is expected that customer is satisfied with the communication of the bank.

It is expected that customer is satisfied with the security of the bank.

It is expected that customer are satisfied with the online banking(ATM cards, Debit

cards, Master Cards, Credit etc.)

Customer satisfaction is related to customer loyalty.

Customer loyalty is related to profitability.

1.2 Significant of the Study

1.3 Hypothesis

In order to make the report more meaningful, presentable, a complete one and to meet the goal of

this report different data and information are required. Those data and information were collected

from various sources, such as-

1) Primary Data

Face-to-face conversation with the respective officers and client.

Relevant file study as provided by the officers concerned.

2) Secondary Data

Annual report of Prime Bank Ltd.

Periodicals Published by Bangladesh Bank and PBL.

Different publications regarding Banking functions.

Internet used as a theoretical source of information.

Websites and Newsletters used as major sources.

In order to analyze gathered data, I plan to use statistical software like SPSS that will run z-test,

t-test, regressions, chi-square test etc. The data will be presented in graphs for better

understanding and clarity.

Limitation of the Study

The collection of data for this report has been difficult because-

It is hard to ensure the authenticity of the data. Even though the bank has provided

numbers for the report, I have been informed that the data was distorted ‘to a reasonable

degree’, due to security and confidentiality concerns of the bank which it deemed as

1.5 Data Analysis

1.6 Limitation of the Study

1.4 Methodology

inappropriate to disclose outside the bank. Hence, the validity of the information gathered

is somewhat questionable.

Finding suitable sample which will represent all customers of PBL.

The sample of customers used to make judgment about the population may be biased.

Satisfaction is a subjective issue and varies among individuals.

Moreover, time for finishing this report has been another factor. Due to late working

hours of the bank, most part of the report had to be completed after the intern period in

the bank was concluded.

Few statistical tools have been used.

I faced the limitation of personal communication with Executives as well as Bankers as

most of the time they were engaged in inevitable work that is in Prime Bank Limited.

It is difficult to reach all customers in a very short time in one branch.

Part-2: Organizational Profile

Prime Bank Limited is a fast growing private commercial bank of Bangladesh. The Bank has

already at the top slot in terms of quality service to the customers and the value addition to the

shareholders. Prime Bank Ltd. was incorporated under the Companies Act, 1994 on February 12,

1995 and on this day, filed a duly verified declaration in the prescribed form that the condition of

section 150(1)(a) to (d) of the said Act, have been compiled with, is entitled to commence

business as a public limited company.

Prime Bank Ltd. being a banking company has been registered under the Companies Act 1913

with its registered office at 5, Rajuk Avenue, Motijheel commercial area, Dhaka 1000. Later it

was shifted to Adamjee Court Annex building, 119-120, Motijheel Commercial Area, Dhaka-

1000. The bank operates as a scheduled bank under banking license issued by Bangladesh Bank,

the central bank of the country on April 17, 1995 through opening of its Motijheel branch at

Adamjee Court Annex Building, Motijheel commercial area, Dhaka-1000.

The Bank made satisfactory progress over the years after its starting. Despite difficult

circumstances it became able to sustain with some achievements. The bank further expected and

consolidated its customer base in both of its core business and retail banking. The bank retained

its lead position with the capital adequacy ratio of 12.43% as on December end 2002, which is

well above the stipulated requirement of 8%. The return on Asset (ROA) was 3.73% well above

the industry average.

Commencement of Operation

Prime Bank Ltd. was established on 17th April 1995 with an authorized capital of Tk.1000

million and paid up capital of Tk.100 million (raised to Tk.200 million in 1997) by a group of

highly successful entrepreneurs from various fields of economic activities such as shipping, oil,

finance, garments, textiles and insurance etc. It is a full licensed scheduled Commercial bank set

up in the private sector in pursuance of the policy of the Government to liberalize banking and

2.0 History of Prime Bank Limited

2.1 Commencement of Operation

financial services. The former governor of Bangladesh Bank Mr. Lutfar Rahman Sarkar was the

first managing director of the bank. Highly professional people having wide experience in

domestic and international banking are managing the bank. The network of branches increased to

120 including 15 SME center and licenses for few more branches are in hand which will be

opened soon. Prime Bank Ltd. is the pioneer in providing consumer loans as well as financing to

the industries and transport sectors through attractive leasing and hire purchase scheme. Prime is

catering both conventional interest based banking and banking under Islamic Sharia Principles.

The Islamic banking operations are completely separated from the conventional banking.

Motto:

“A Bank with a difference” is the motto of Prime Bank Limited. The Bank is prepared to meet

the challenge of the 21st century well ahead of time. To cope up with the challenge of the new

millennium it has hired experienced and well-reputed banker of the country from the inception.

So the Bank defined:

Vision:

To be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy,

asset quality, sound management and profitability having strong liquidity.

Mission:

To build Prime bank limited into an efficient, market driven, customer focused institution with

good corporate governance structure.

Continuous improvement in our business policies, procedure and efficiency through integration

of technology at all levels.

Focus of Efforts:

“On delivery of quality service in all areas of banking activities with the aim to add increased

value to shareholders’ investment and offer highest possible benefits to our customers”

2.2 Motto, Vision, Mission, Focus of efforts, Objectives and Values of Prime Bank Limited

Objectives:

The objectives of the Prime Bank Limited are specific and targeted to its vision and to position

itself in the mindset of the people as a bank with a difference.

To mobilize the savings and channeling it out as loan or advance as the company approve.

To establish, maintain, carry on, transact and undertake all kinds of investment and financial

business including underwriting, managing and distributing the issue of stocks, debentures,

and other securities.

To carry on the Foreign Exchange Business, including buying and selling of foreign

currency, traveler’s cheque issuing, international credit card issuance etc.

To develop the standard of living of the limited income group by providing Consumer Credit.

To encourage the new entrepreneurs for investment and thus to develop the country’s

industry sector and contribute to the economic development.

Values

All of PBL’s activities are centered on few group values which are provided below:

Long-term, ethical client service.

Confident and ambitious sense of excellence.

Capable of creativity and strong marketing.

High productivity through teamwork.

Fast decisions and implementation.

Putting the Group’s interest ahead of the individual’s.

The appropriate delegation of authority with accountability.

Fair and objective employer.

A merit approach to recruitment/selection/promotion.

PBL continues to earn recognition and trust for its strong and sustained financial performance

and product management. In 2011 PBL received 4 most valued awards for its published accounts

and reports and corporate governance viz.

Best Presented Accounts Award” from SAFA (South Asian Federation of

Accountants) for Annual Report-2010.

Best Published Accounts & Reports Award” from ICAB (Institute of Chartered

Accountants of Bangladesh) for Annual Report 2010.

ICMAB Best Corporate Award 2011” from ICMAB (Institute of Cost &

Management Accountants of Bangladesh).

International Star for Leadership in Quality (ISLQ) Award” in the Gold category

on the basis of ISLQ Regulations and criteria of the QC100 Total Quality

Management Model by B.I.D. (Business Initiative Directions) during the

International Quality Convention held in Paris on 11th April 2011.

For Customers

1. To provide the most courteous and efficient service in every aspect of its business2. To be innovative in the development of new banking products and services

For Employees

1. By promoting their well-being through attractive remuneration and fringe benefits2. By promoting good staff morale through proper staff training and development and

provision of opportunities for career development

2.3 Achievement of Prime Bank Limited at a glance

2.4 Corporate Philosophy

For Shareholders

1. By forging ahead and consolidating its position as a stable and progressive financial institution

2. By generating profits and fair return on their investment

For the Community

1. By assuming our role as a socially responsible corporate citizen in a tangible manner.

2. By adhering closely to national policies and objectives thereby contributing towards the progress of the nation upholding ethical values and best practices.

Maintain satisfactory capital to support growth and remain compliant.

Continue to strive for sound growth by doing the business that we do well, expanding into

areas underserved, entering new sectors and exploring innovative ideas.

Have a strong customer focus and build relationships based on integrity, superior service and

mutual benefit.

Continue to provide new services to customers with support of superior information

technology platform

Establishment of good Corporate Governance by remaining efficient, transparent,

professional and accountable to the organization, society and environment.

Ensure effective risk management for sustainable growth in shareholders’ value.

Diversification of loan portfolio through structured finance and expansion of Retail and SME

financing.

Value and respect people and make decisions based on merit.

Expansion of Brand Image by in-house capacity development through continuous training.

Be responsible, trustworthy and law-abiding in all that we do.

Be leader in serving the interest of our community and country.

2.5 Strategic Priority

Banking deals with public money where Ethics, Integrity and Trust is utmost important. Prime

Bank upholds these principles in every section by its management and customer service. The

following are the key principles of Employee Codes of Ethics and Business Conduct:

Provide service to customers with uncompromising integrity, utmost respect, unwavering

responsibility and dedicated citizenship.

Protect privacy and confidentiality of customer information.

Prevent money laundering and fraud.

Demonstrate workplace respect.

Name DesignationMr. Md. Shirajul Islam Mollah Chairman

Mr. M.A. Khaleque Chairman

Mrs. Razia Rahman Vice Chairperson

Mr. Azam J Chowdhury Director

Mr. Mohammad Aminul Haque Director

Mr. Mafi z Ahmed Bhuiyan Director

Quazi Sirazul Islam Director

Mrs. Shahnaz Quashem Director

Mrs. Hasina Khan Director

Capt. Imam Anwar Hossain Director

Qazi Saleemul Huq Director

Mr. K.M. Khaled Director

Mr. Muhammad Abdul Wahhab Director

2.7 Board of Directors

2.6 Ethics, Integrity and Trust

Mr. Nafis Sikder Director

Ms. Firoja Amin Director

Ms. Saheda Pervin Trisha Director

Mr. Tanjil Chowdhury Director

Mr. Manzur Murshed Director

Prof. Ainun Nishat Director

Prof. Mohammed Aslam Bhuiyan Independent Director

Mr. Md. Ehsan Khasru Director

Human resource Department (HRD):

HRD performs all kind of administrative and personnel related matters. The broad functions of

the division are as follows:

a) Selecting & Recruitment of new Personnel.

b) Prepare all formalities regarding appointment and joining of the successful candidates.

c) Placement of Manpower.

d) Deal with the transfer, promotion and leave of the employees.

e) Training & Development.

f) Termination and retrenchment of the employees.

g) Keeping records and personal file of every employee of the Bank.

h) Employee welfare fund running.

i) Arranges workshops & trainings for employee & executives.

Financial and Administration Department (FAD):

Financials Administration Division mainly deals with the account side of the Bank. It deals with

all the Head Office transactions with bank and its Branches and all there are controlled under the

following heads:

a) Income, Expenditure Posting: All income and expenditures are maintained and posted

2.8 Functional Department of Prime Bank Ltd.

under these heads.

b) Cash Section: cash section generally handles cash expenditure for office operations and

miscellaneous payments.

c) Bills sections: this section is responsible for inland bills only.

d) Salary & Wages of the Employee: Salary and wages of the Head Office executives,

Officers 7 Employees are given in this department.

e) Maintenance of Employee Provident Fund: Employee provident fund accounts are

maintained here.

Inspection and Audit Division:

Inspection and Audit division works as internal audit division of the Company. The officers of

this division randomly go to different branches examine the necessary documents regarding each

single account. If there is any discrepancy, they inform the authority concerned to take care of

that/those discrepancies. They help the bank to comply with the rules and regulation imposed by

the Bangladesh Bank. They inform the Bangladesh Bank about the Current position of the rules

and regulation followed by the Bank

Marketing Division:

Marketing Division is involved in two types of Marketing.

Asset marketing: Marketing of assets refers to marketing of various kinds of loans and advances.

In-order to perform this jobs, they often visits dome large organizations and attract then to

borrow from the Bank to finance profitable ventures.

Liability Marketing: The process of Liability marketing is more of less same as Asset marketing.

In this case different organizations having excess funds are solicited to deposit their excess fund

to the Bank. If the amount of money to be deposited is large, the Banks sometimes offer a bit

higher price than the prevailing market rate.

Public Relation Department:

It has to perform certain functions related to all types of communication. The broad routine

functions can be enumerated as follows:

a) Receiving and Sanctioning of all advertisement application

b) Keeping good relation with different newspaper offices.

c) Inviting concerned ones for any occasion.

d) Keeping good relation with different officers of electronic media.

Computer and Information Technology Department.(SS) :

Prime Bank operates and keeps records of its assets and liabilities in computers by using

integrated software to maintain client Ledger and general Ledger. The main function of this

division is to provide required Hardware and Software. The functions of this division are:

a) Designing software to support the accounting operation.

b) Updating Software, if there is any lagging.

c) Improvisation of software to get best possible output from them.

d) Hardware and Software troubleshooting.

e) Maintain Connectivity in through LAN, Intranet & Internet.

f) Provide updated CD’s of Online Accounts to the Branches.

g) Routine Checkup of Computers of Different Branches.

Merchant Banking and Investment Division:

This division concentrates its operation in the area of under writing of initial public offer (IPO)

and advance against shares. This division deals with the shares of the Company. They also look

after the security Portfolio owned by the Bank. The Bank has a large amount of investment in

shares and securities of different corporations as well as government treasury bills and prize

bond.

Credit Division:

The main function of this division is to maintain the Bank’s credit portfolio. A well reputed and

hard working group of executives & officers runs the functions of this division. Other major

functions are the following:

a) Receives proposals.

b) Proposes and appraises.

c) Get approval.

d) Communication and Sanction.

e) Monitoring and follow-up.

f) Set price for credit and ensure effectiveness of it.

g) Prepare various statements for onward submission to Bangladesh bank.

International Division:

The objective of this division is to assist management to make international dealing decisions

and after decision is made, guide Branches in their implementation. Its functional areas are as

follows:

a) Maintaining correspondence relationship.

b) Monitoring foreign exchange rate and exchange dealings.

c) Maintaining No stro A/Cs and reconciliation.

d) Authorizing of signing and test key.

e) Monitoring foreign exchange returns & statements.

f) Sending updated exchange rates to concern branches.

Logistic & Support Services Division (L&SSD):

This Division was formerly known as General Services Division (GSD). Their main function

relates to procurements and supply of all tangible goods and services to the Branches as well as

Head office of Prime Bank Limited. This includes-

a) Every tangible functions of Branch opening such as making lease agreement, interior

decoration etc.

b) Print all security papers and Bank Stationeries.

c) Distribution of these stationeries to the branch.

d) Purchase and distribute all kinds of bank’s furniture and fixtures.

e) Receives demand of cars, vehicles, telephones etc from branched and different divisions

in head office and arrange, purchase and delivery of it to the concerned person / Branch.

f) Install & maintain different facilities in the Branches.

Consolidation of Branch’s Accounts:

All branches periodically (especially monthly) send their income and expenditure i.e. profit and

loss accounts and Head Office made the consolidation statement of income and expenditure of

the bank. Here branch Statements are reviewed. This division also prepares different monthly,

quarterly, half-yearly statements and submits to Bangladesh bank. It also analyzes and interprets

financial statements for the management and Board of director.

Credit Card Division:

Prime Bank obtained the principal membership of Master Card International in the month of

May, 1999. A separate Division is assigned to look after this card. The Marketing Team of this

division goes to the potential customers to sell the card. Currently Prime Bank Ltd. offers four

types of card:

(1) Local Silver Card.

(2) International Silver Card.

(3) Local Gold Card.

(4) International Gold Card.

Recently Prime Bank has obtained the membership of VISA credit Card and soon they will start

marketing of it.

2.9 Challenges of Future operation of Prime Bank Limited

Prime Bank Limited is well positioned to meet the challenges of 2013 and will continue to strive

to innovate and capture opportunity for growth and value creation. The Bank will focus on its

large customer base to generate more business from existing customers. This strategy is

supported by continuous improvement in the existing wide spectrum of product and services and

level of customer service delivery. The Bank will continue to harness the potential of retail,

credit card, SME and remittance market. However, continued pressure on interest margins, fee,

exchange earnings and increased provision requirement for Retail, Credit Card and SME wilt

pose a challenge to the financial institutions during 2013 also. In its pursuit for growth, the Bank

will always adhere to good corporate governance and practices and sound risk management

policies and strict credit evaluation procedure. We see ourselves as strong and effective player in

the financial system and would remain ready for the implementation of the same. Our exposure

in core business of corporate and retail sectors with wide range of products is continuously

expanding our operation.

2.10 Hierarchy Position of Prime Bank Limited

Top Level

ChairmanBOD

Executive CommitteeManaging Director

Executive Level

AMDDMDSEVPEVPSVPVP

SAVPAVP

Mid Level Management

FAVPSenior Executive Officer

Executive OfficerPrincipal Officer

Management Trainee L2

Junior Level Management

Senior OfficerManagement Trainee L1

Junior Officer

Figure 2.1: Hierarchy position of PBL

Name Of the organization Prime Bank Limited

Year of Establishment 17th April 1995

Head Office 119-120, Adamjee Court Annex building,

Motijheel Commercial Area, Dhaka-1000.

Nature of the organization Commercial and Private Bank of

Bangladesh.

Capital Asset: BDT 199.95 billion (In year 2011)

Deposit: BDT 35.25 billion (In year 2011).

Service a) Commercial banking both Conventional

and Islamic mode.

b) Merchant and Investment Banking.

c) SME & Retail Banking

d) Credit card and off-shore banking.

Number of Branches 103 (Corporate)

17 (SME)

Number of Employees 2,292

Market Price per share BDT 44.50

Service coverage & customers Serves individual and corporate customers

within Dhaka ,Chittagong, Khulna, Barisal,

Sylhet , Rajshai & Rangpur

No. of Foreign correspondents 644(In year 2011)

CRISL Rating (Credit Rating

Information

Service Limited)

Long term-AA+

Short term- ST-1

2.11 Prime Bank Limited at a glance

Subsidiaries 1) Prime Bank Investment Limited.

2) Prime Bank Securities Limited.

3) Prime Exchange Company (Pte) Limited, Singapore.

4) PBL Exchange (UK) Limited.

5) PBL Finance (Hong Kong) Limited.

6) Prime Bank Foundation.

Part-3: Customer Services provided by PBL with the online facility

At this moment, Prime Bank Limited is one of the leading on-line banks of Bangladesh. The

Customer Services Department is fully maximizing this on-line facility to provide value added

and differential services to their customers. A customer can really banking with PBL from

anywhere and anytime. The various customer services activities performed by the Customer

Services Department of PBL can be classified into two categories. These two categories are as:

1. Cash and Non-Cash Services

2. Other Customer Services

Cash and Non-Cash Services

PBL assign a CSM as an in-charge of all the cash and non-cash activities of a branch. The CSM

is supervising a team of CSO, known as ‘Teller’ to perform the entire cash and non-cash

activities efficiently and timely.

This category can be subdivided into two different groups to discuss their activities more

effectively:

a. Cash Services

b. Non-Cash Services

Cash Services

From this section, the customers are getting the following services:

i. Deposit Money

ii. Withdraw Money

iii. Electronic Fund Transfer

Deposit Money

The customers can deposit any amount of money in any branch of PBL in Bangladesh. In terms

of currency, all the accounts of PBL are divided into two categories:

Local Currency Accounts

Foreign Currency Accounts

3.0 Customer Services provided by PBL with the Online Facility

So, the customers can deposit both the local and foreign currency according to their account

status. As I discussed earlier, PBL has developed a very unique kind of account number, so the

customers can deposit their money in any of the branches of PBL in Bangladesh.

Withdraw Money

The customers can withdraw money from any of the branches of PBL with the help of their local

or foreign currency cheque, or counter cheque.

Note that, the customers can deposit foreign currency in their foreign currency account, but at the

time of withdraw; they get local currency, which is converted by using the ‘TT Clean’ rate and

this rate is daily set by the treasury department of the bank. The foreign currency account holders

can only get their original currency against the endorsement on their passport.

Electronic Fund Transfer

The electronic fund transfer is mainly done by the CSO of non-cash counter; however, the ‘cash

a/c pay’ cheque transfer is done by the CSO of cash counter. With the on-line facility, the CSO is

transferring the fund between the PBL accounts immediately.

Most of the customers, mainly the account holders, are quite satisfy with the services provided

by the CSOs of cash counters. In fact, we can say, almost 90% of the total customers are pleased

with services. Rests other are not satisfied because of not only of the performance of the CSOs,

but also some other factors like shortage of sitting chair.

Non-Cash Services

The Non-Cash counters of the CSD are providing the following services to customers:

Receiving other banks A/C Pay cheques for clearing or collection

Electronic fund transfer between PBL accounts.

Preparing local Cashier Order

Sending instruction of local Telegraphic Transfer

Receiving and sending MT_100 salary sheets for further processing.

Receiving foreign ‘Demand Draft’ or ‘Telegraphic Transfer’ request along with

necessary documents

Receiving necessary documents to process inward remittance.

Encashment of Foreign Currency and Travelers Cheque.

Endorsement of Foreign Currency and Travelers Cheque on the passport.

Clearing and Collection

The main duty of non-cash CSO is to receive other bank ‘A/C Pay’ cheque, both from the

personal and corporate customer, and send those cheques to clearing and collection department

for further processing.

PBL, Motijheel Branch, is providing two types of clearing facilities to its customers. These are:

a) Normal Clearing.

b) Same-Day Clearing (High Value Clearing).

Normal Clearing

Under the normal Clearing, the bank takes only one working day to collect money for its

customer. If a cheque is deposited on day D, the bank will take (D+1) day to clear that cheque

from draw-on bank. The following figure of the next page will show the cheque clearing process

of PBL:

Figure 3.1: Cheque clearing process of PBL

Same-Day Clearing ( High Value Clearing

Same-Day clearing process is a conditional service of PBL and it is only available at its

Motijheel Branch. The cheque amount must be BDT 500,000.00 or above and also within the

same-day clearing range of Bangladesh Bank. Rest other formalities are as same as normal

cheque clearing.

Send Information

Clearing Information

Clearing Information

Send Information

I

Payment Information

Clearing House Contact with Payee for Clearing

Clearing Department Sending Cheques to Bangladesh Bank’s

Clearing House

Branch Sending Cheque

Central Computer System of

PBL, Bangladesh

Clearing Department

Receive Cheque from Branch

Clearing House of Bangladesh

BankPayee

Bank

Cheque Deposit on PBL Branch

PBL follows the collection procedure for cheques, which are outside the clearing zone. In this

case, a representative of PBL physically takes the cheques to the drawee bank for collection.

This process take (D+14) to (D+21) for clearing a cheque.

Electronic Fund Transfer

The internal ‘A/C Pay’ cheque i.e. A/C pay cheques of PBL is transferred immediately by the

CSO of non-cash counter. The fund is instantly debited and credited in the respected accounts

through the centralized computer system. Both the individual and corporate customers are

maximizing this facility to make payment between PBL accounts.

Cashier Order

The cashier orders are a kind of ‘A/C Pay’ cheque, which prepared by the bank itself, as an agent

of its account holders. A customer can request for the cashier order from any branch of

PBL,because it is controlled by the centralized computer system.

Endorsement and Encashment of Foreign Currency and Travelers Cheque (AMEX )

Most of the foreign currency dealings of a branch are handled by the CSO of the non-cash

counter. The CSO can endorse or encash foreign currency without the help from the bank’s on-

line support. But for encashment of AMEX’s Travelers Cheque the CSO should get the approval

from its issuer through the on-line support of the bank. After getting approval the CSO can

encash the Travelers Cheque. The following figure of the next page will show this procedure

more clearly.

Prime Bank Bangladesh

Figure 3.2: Travelers Encashment of PBL

Firewall Sending TC Information

Approval/ Disapproval

Approval/ Disapproval

Approval/ Disapproval

Approval/ Disapproval

Sending TC Information

Sending TC Information

Sending TC information

Internet

The Computer Network of AMEX

Central Computer System of

PBL, Bangladesh

PBL, Motijheel Branch Receives AMEX Travelers

Cheque for encashment

Along with these discussed services, the CSO of the non-cash counter performed the above

mentioned services through the centralized computer system of PBL.

Other Customer Services

So far, I have discussed the services provided by the CSD (Customer Service Department) back

i.e. the cash and non-cash section. Now, I am going to discuss the services provided by the CSD

front i.e. the customer services department for customer queries and value-added services. The

CSM front is the line supervisor of this section, who is leading a team of dedicated Customer

Services Officers (CSO). From this section, customers are getting the following Services:

a. Helping Customers to open accounts with PBL, Bangladesh.

b. Delivery of PBL ATM Cards and PINs.

c. Delivery of Credit Cards.

d. Processing different Government Securities (Bonds).

e. Providing Bank Certificate.

f. Receiving and processing Standing Instruction of customers.

g. Maintaining up-to-date contact addresses of customers.

h. Providing suitable solutions to different customer queries.

i. Providing necessary information to existing and potential customers.

Consumer Banking

Savings Account

Prime Bank brings you the ultimate trust, security and convenience in Savings Account. Any

Bangladeshi national with an age of 18 years or above can open this. To open saving a customer

can get following facility-

Cheque-book facility.

Opportunity to apply for - safe deposit locker facility.

3.1 Products and services provided by Prime Bank Limited

Utility payment service.

Collect foreign remittance in both T.C. and Taka draft.

Transfer of fund from one branch to another by

-Demand draft.

-Mail transfer.

-Telegraphic transfer.

-Pay Order.

Transfer of fund on Standing Instruction Arrangement.

Collection of cheques through clearing house.

SMS Banking.

Online banking service.

Prime Bank Branded ATM card.

Document required for saving account-

Completed account opening form.

Passport size photograph for each account holder.

Proof of identification such as national/voter's ID, passport or driving license.

Current Account

Prime Bank brings you the ultimate trust, security and convenience in Current Account in Taka

which can be freely deposited and withdrawn. At the time of opening, this account is also

accompanied by a Special Notice Deposit (SND) account.

To open saving a customer can get following facility-

Cheque-book facility.

Opportunity to apply for - safe deposit locker facility.

Collect foreign remittance in both T.C. & Taka draft.

Transfer of fund from one branch to another by

-Demand draft.

-Mail transfer.

-Telegraphic transfer.

-Pay Order.

Transfer of fund on Standing Instruction Arrangement.

Collection of cheques through clearing house.

SMS Banking.

Online banking service.

Prime Bank Branded ATM card.

Document required for saving account-

Completed account opening form.

Passport size photograph for each account holder.

Proof of identification such as national/voter's ID, passport or driving license.

Deposit Schemes

Double Benefit Deposit Scheme

The deposit scheme shall be issued for 5 years 5 months term.

Rules for Double Benefit Deposit Scheme-

a) After 5 years 5 months terminal value will stand at Tk. 2

lac from the initial fixed deposit of Tk. 1 lac

b) Minimum deposit is Tk. 25,000/- and multiples thereof but maximum limit is Tk. 25.00

lac at a time will be acceptable under this scheme.

Monthly Benefit Deposit Scheme

This is a Deposit Scheme where the depositor gets a fixed amount of

profit every month without disturbance of the principal. Deposit of Tk.

25,000.00 and multiples thereof shall be acceptable for the Scheme. Profit

shall be paid on monthly basis @ Tk. 1,000 per Tk. 100,000.00. The

Deposit shall be for a period of 5 (five) years. The Principal amount is

refundable on maturity.

House Building Deposit Scheme

The tenor of the House Building Deposit Scheme will be 5/7/10 years.

Minimum Equity building amount shall be Tk. 10.00 lac. HBL facility

shall be considered on maturity upon application up to three times the

equity but not exceeding Tk. 50.00 lac on compliance of loan

formalities.

Education Saving Scheme

The instrument shall be issued for 5 years. Deposit of Tk. 50,000/- and

multiples thereof at a time will be accepted under the Scheme.

Lakhopoti Deposit Scheme

The tenor of the Lakhopati Deposit Scheme will be 3/5/10/15 years.

Monthly installment shall be Tk. 2,400.00 /Tk. 1,285.00 /Tk. 500.00/Tk.

250.00 for the tenor of 3/5/10/15 years respectively. Terminal amount on

maturity shall be Tk. 1.00 lac.

Prime Millionaire Scheme

Monthly installment shall be Tk. 12,465.00 /Tk. 7,890.00 /Tk. 4,570.00 for the tenor of 5/7/10

years respectively. Terminal amount on maturity shall be Tk. 10.00 lac.

Contributory Saving Scheme

The Deposit shall be for a period of 5 years. Minimum size of monthly

installment shall be Tk. 500/- and multiplies of Tk. 1000/-. Maximum

installment size shall be Tk. 25,000/. Loan may be allowed up to 80% of

the deposited amount against lien on the same after at least 2 (Two) years

of regular payment of installments and minimum limit of the loan shall

be Tk. 50,000/-.

Deposit Rates:

Sl   Particulars Rate of Interest

01.   Special Notice Deposit (For Customer)

       a) Below Tk. 1.00 crore 3.00%

       b) Tk. 1.00 crore and above but below Tk. 25.00 crore 5.50%

       c) Tk. 25.00 crore and above but below Tk. 50.00 crore 5.50%

       d) Tk. 50.00 crore and above but below Tk. 100.00 crore 8.00%

       e) Tk. 100.00 crore and above 11.00%

02.   Savings Deposit 5.50%

03.   Fixed Deposit

  A) 1 (One) month

       a) Below Tk.50.00 lac 7.00%

       b) Tk.50.00 lac and above but below Tk.1.00 crore 12.50%

       c) Tk.1.00 crore and above but below Tk.3.00 crore 12.50%

       d) Tk.3.00 crore and above 12.50%

  B) 3 (Three) months

       a) Below Tk.1.00 crore 12.50%

       b) Tk.1.00 crore and above but below Tk.3.00 crore 12.50%

       c) Tk.3.00 crore and above 12.50%

  C) 6 (Six) months

       a) Below Tk.1.00 crore 12.50%

       b) Tk.1.00 crore and above but below Tk.3.00 crore 12.50%

       c) Tk.3.00 crore and above 12.50%

  D) 1 (One) year & above

       a) Below Tk.1.00 crore 12.50%

       b) Tk.1.00 crore and above but below Tk.3.00 crore 12.50%

       c) Tk.3.00 crore and above 12.50%

Loan

Swapnaneer Home Loan

In reality, home is no more a living place to us; it's our dream! Swapnaneer will enable you to

turn your dream into reality. You can avail the loan with competitive rates, most convenient

features and easily-avail procedures. Your satisfaction is our priority throughout the full tenure

of loan from beginning to repayment.

Swapnapuron Home Loan

Daughter's wedding, vacation, son's/daughter's admission to a foreign university, Medical

treatment whatever the occasion or requirement may be,

Swapnapuron will enable you to meet your dream, just need to

keep your flat/home mortgaged at Prime Bank. You can avail

the loan with competitive rates, convenient features and simple

procedures.

Car Loan

For personal or family tours and travels or any kind of daily movements car is the essential

element for the modern world. Owning a personal car is no

longer a luxury but a matter of fulfilling a necessity. Our car

loan will allow you to indulge your tours and travels needs with competitive rates, convenient

features and simple procedures.

Any purpose Loan

Worried of matching personal miscellaneous financial/family requirements? Our Any Purpose

Loan will enable you to meet all your needs. You can avail the

loan with competitive rates, convenient features and simple

procedures.

Marriage Loan

Thinking of the cost of wedding? Our Marriage Loan will enable you to indulge your long-

cherished priorities and expenditures of your wedding. You

can avail the loan with competitive rates, convenient features

and simple procedures.

Doctor’s Loan

Are you a Doctor? Panning to have your own chamber? Our Doctor's Loan will enable you to

convert your dream into reality. You can avail the loan with

competitive rates, convenient features and simple procedures.

CNG Conversion Loan

Annoyed about fuel cost of your personal vehicle? You need

not to worry; CNG Conversion Loan to help you to convert

your personal vehicle to CNG. You can avail the loan with

competitive rates, convenient features and simple procedures.

Travel Loan

Planning to travel abroad? Our Travel Loan may enable you to convert your dream into reality.

You can avail the loan with competitive rates, convenient

features and simple procedures.

Household Durables Loan

Thinking of the cost of buying furniture/home

appliances/household durables? Our Household Durables

Loan will enable you to buy your desired products. You can

avail the loan with competitive rates, convenient features and

simple procedures.

Education Loan

Better education is a dream; is the priority of time! Our

Education Loan enables parents/guardians/students for those

who want to fulfill their dreams. You can avail the loan with

competitive rates, convenient features and simple procedures.

Hospitalization Loan

Worried of Hospitalization cost? Our Hospitalization Loan will enable you to pay the

hospitalization/medical treatment cost. You can avail the loan

with competitive rates, convenient features and simple

procedures.

Loan against Salary

Worried about matching personal miscellaneous

financial/family requirements from your salary?

Loan Against Salary of Prime Bank Ltd. will enable you to meet all your needs. You can avail

the loan with competitive rates, convenient features and simple procedures.

MasterCard Gold Credit Card

Want to get a Credit Card? Come and grab the Prime Bank Credit Cards and experience the

infinite amusements of life! Choose from our wide range of

card products of MasterCard brand as per your requirements

to enliven your lifestyle.

VISA Gold Credit Card

Want to get a Credit Card? Come and grab the Prime Bank

Credit Cards and experience the infinite amusements of life!

Choose from our wide range of card products of VISA brand

as per your requirements to enliven your lifestyle.

MasterCard Silver Credit Card

Want to get a Credit Card? Come and grab the Prime Bank Credit Cards and experience the

infinite amusements of life! Choose from our wide range of

card products of MasterCard brand as per your requirements

to enliven your lifestyle.

VISA Classic Credit Card

Want to get a Credit Card? Come and grab the Prime Bank Credit Cards and experience the

infinite amusements of life! Choose from our wide range of

card products of VISA brand as per your requirements to

enliven your lifestyle.

Prime Bank International Credit Card

Our International Cards:

About TQ (Travel Quota) Card:

You have the opportunity to be privileged while selecting a Prime Bank TQ Card. We offer both

MasterCard and VISA TQ Card with a bundle of value added services for you.

A Travel Quota Credit Card is issued against the entitlement of foreign Currency Quota allotted

as per Bangladesh Bank guidelines. It has been designed to give you more liquidity in terms of

USD currency.

About RFCD (Resident Foreign Currency Deposit) Card:

RFCD Card gives you more access to your money according to your inevitable needs. Prime

Bank provides you a flexi credit limit against your Foreign Currency A/C balance.

About RQ (Retention Quota) Card

RQ is the most privileged Credit Card. A RQ Card is issued against the balance of ERQ.

Benefits of Prime Bank International Credit Cards-

1) No transaction fee for purchases.

2) Roaming cell phone bill payment facility.

3) Strong fund monitoring system.

4) Credit limit revolving facility against remaining travel quota (TQ card).

5) Flexible credit limit according to RFCD A/C balance (RFCD card).

6) Real time transaction monitoring with VIP transaction monitoring to render undisrupted

facility.

7) Immediate cash advance up to 20% from any Master card /VISA participating member

bank ATMs throughout the world.

8) Accepted at 30 million merchant outlets internationally and 1.4 million ATMs for cash

withdrawals.

9) Facility of making purchase and withdrawal in local currency.

10) 2(Two) years validity period.

11) 24/7 Prime Bank Card Centre access to give you service regarding your query(Exporter’s

Retention Quota ) A/C.

Platinum Credit Card

Platinum Treats that Make You VIP! Greater Financial Support: the world is now in the grip of

your hand as with PBL Platinum Credit Card all you need is

your wish to enjoy yourself. Enjoy maximum collateral free

credit limit of Tk. 500,000 /- or USD 6,500/- & collateralized

limit of Tk. 2,000,000/- or USD 25,000/-.

Master Debit Card

Master the power of money with us! Withdrawal or

shopping was no easier and convenient ever before!

Prime Bank offers you Master Debit Card; the fast,

secure and convenient way to withdraw cash and

convenient transactions at different MasterCard branded POS terminals. If you are a

SD/CD/STD account holder of Prime Bank, you can avail this debit card and can master over

1300 ATMs all over Bangladesh and can get privilege in the MasterCard branded POS or

MasterCard branded network.

Prime ATM Card

Now you can access to your money 24/7 more easily and conveniently through our widespread

network of ATMs in Bangladesh. Our ATMs have user-

friendly screens and easy to follow instructions in both

Bengal and English languages.

Locker Service

Prime Bank offers you modern locker facility for

safekeeping of your valuables jewelers, documents and

other precious things to you.

Features of Locker services:

1) Secure and confidential service.

2) Wide availability of locker service.

3) Available in three sizes i.e. small, medium and large.

4) Auto debited facility for your locker rental charges.

5) Nomination facility is available for the lessee of locker service.

Size and rents of locker:

1) Small Size: Tk. 2500/Year.

2) Medium Size: Tk. 3000/ Year.

3) Large Size: Tk. 3500/ Year.

Internet Banking: Altitude

Facilities of internet banking Altitude are-

1) ALTITUDE Internet Banking offers a host of services and facilities that give you real-

time access to your account.

2) Link your Bank Accounts, Loans and Deposit Schemes to a single User ID.

3) View & download your Transaction Account, FDR & Deposit Scheme Account

Statement since opening of the Account.

4) Transfer funds to any Prime Bank Account in real time.

5) Transfer funds to any non-Prime Bank Account in fastest possible time.

6) Transfer funds from and to your Continuous Loan Accounts in real time.

7) Pay Credit Card Bill of Prime Bank and other Banks which receive Credit Card Bill

through BEFTN.

Phone Banking Service Benefits

Our Phone Banking Service provides 24/7 continuous support for you. The main services are:

1) Balance inquiry: Customer will get account balance information.

2) Change TIN: Customer can change their TIN

(Telephone Identification Number).

3) Activate ATM and Master card: Customer can

activate ATM/Master Debit card by dialing the service

contact number.

4) Block ATM and Master card: Customer can block

ATM/ Master Debit card by dialing the service contact number.

5) Credit card available limit: Credit Card user can get current available limit.

6) Credit card total outstanding: Credit Card user can know credit card total outstanding

bill amount.

7) Credit card minimum payable amount: Credit Card user can know minimum payable

amount of last bill amount.

8) Credit card last statement generation date: Credit Card user can know last statement

generation date.

9) Credit card last date of payment: Credit Card user can know last date of payment for

recent bill amount.

Utility Bills Pay Service

Our Utility Bills Pay service will enable you to pay post-paid cellphone bills flexibly. You can

avail the service at Prime Bank ATM booths or Information Kiosks round the clock. You need

no to visit branches and bother standing in a queue not even need to carry cash to clear the bills.

Who can avail the service?

Prime Bank ATM/Master Debit Card holders can get the utility bills pay service.

The services are:

1) Grameen post-paid cell phone bills only.

2) Robi post-paid cell phone bills only.

3) Banglalink post-paid cell phone bills only.

4) Airtel post-paid cell phone bills only.

SMS Banking

Prime Bank brings SMS Banking services to ensure

instant access to your account information at any

time. Any mobile phone user having account of Prime

Bank can get the service through the mobile phone

upon registration.

What we offer in SMS Banking:

a) Balance inquiry.

b) Mini statement.

c) Exchange Rate.

d) PIN Change

e) Requisition help.

Mobile Banking

Easy Cash, Prime Bank Mobile Banking Service, is a secured mobile financial service to access

cash easily and conveniently using mobile phone technology. Easy Cash can be accessed from

anywhere at any time including remote rural areas of the country. The Easy Cash Account model

of Prime Bank works on the fundamental principle of giving everyone an access to a bank

account and adding value to lifestyle of customers irrespective of social strata in Bangladesh.

Prime Cash

Prime Bank Ltd. and Dipon Consultancy Services jointly brings a banking service, a Biometric

Smart Card based alternate banking service in the brand

name “Prime Cash” for the un-banked rural and urban

people to address banking needs and payment needs of

the broader Bangladesh community. Most importantly, it

will provide a fast, safe and simple mechanism for the

un-banked men/women across Bangladesh in all municipalities and upazilas.

Corporate Banking

General Credit Unit (GCU)

Prime Bank gives the credit facilities to finance current assets and loans to finance fixed assets in

the form of Working Capital Finance, Capital Machinery Finance, and Real Estate Finance,

Work order Financing/Construction Business, Import and Trade Finance. GCU provides:

1) Short term finance.

2) Long term finance.

3) Real Estate finance.

4) Import finance/ Trade finance.

5) Work order financing/ Construction Business.

Export Finance Unit (EFO)

Prime Bank always gives priority to its export-oriented customers. To provide complete banking

solutions to our export-oriented customers, we have a separate Export Finance Unit. Different

export-oriented companies comprising of Textile, Spinning, Knit, Woven, Sweaters, Jute,

Leather, Fisheries and Trim/Accessories manufacturers are getting prompt banking services

through our 27 AD branches, 3 OBUs and other non-AD branches under active support form

Export Finance Unit, Head Office. Export Finance Unit provides:

1) Project Loan

2) Working capital   

3) Back-to-Back L/C   

4) PC/Overdraft/ECC   

5) L/C & LTR  

6)  Cash Credit (Hypothecation):   

7) SOD (CI).

Structured Finance Unit (SFO)

Prime Bank offers customized, friendly, and flexible financial solutions to customers and strives

to ensure financing package in a cost-effective manner. Structured Finance Unit deals with

project financing and covers virtually every sector of the economy with a focus on infrastructure

projects, project finance, acquisition finance, securitization, and advisory services.

Structured Finance Unit provides:

1) Project Finance

2) Acquisition Finance.

3) Securitization.

4) Advisory.

5) Investment Procedure.

Lease Finance Unit (LFO)

Prime Bank provides one of the most convenient long term sources of loans in the industry for

acquiring capital machineries and equipments under lease financing. It is a very popular scheme

whereby a customer is given the opportunity to have an exclusive right to use an asset, usually

for an agreed period of time, against payment of installments.

Prime Bank offers lease finance facility against the following items:

a) Capital Machinery required for industrial units.

b) Capital Machinery required for BMRE of the existing industrial units.

c) Medical Equipments/ Machinery for Clinics, Pathological Laboratories, hospitals etc.

d) Elevators, Central Air Conditioners, Generators etc.

e) Vehicles including luxury coach, bus, minibus, micro-bus trucks etc.

f) Construction Equipments.

Islamic Banking

Prime Bank provide Islamic banking for customers. Their Islamic banking facilities are:

1) Hasanah Deposit.

2) Hasanah Foreign Trade.

3) Hasanah Investment products.

SME Banking

Prime Bank provide SME loan for poor and middle class people for their business and different

purpose.

Sahaj Rin (Collateral Free Loan)

Sahaj Rin provides you an easy to access loan facility to

successfully grow your small & medium enterprise business.

Sampad Rin (Capital Loan)

Sampad Rin offers you the loan facility to augment capital base for your business expansion,

purchase of new business space or expansion of existing outlets and capital machineries and also

to purchase light or heavy vehicles for business use.

Chalti Rin (Working Capital Loan)

Chalti Rin offers you the loan facility to increase the working capital base by financing day to

day business of your Small and Medium Enterprise (SME) business.

Moushami Rin (Seasonal Loan)

Moushami Rin offers you the loan facility to grab the additional opportunities in various festivals

and seasonal events (i.e. Eids, Pujas, Christmas, Bengali and English New Year etc.) by

organizing special business arrangements to increase sales and profit for your SME business.

Digun Rin (Double Loan)

Prime Bank's Digun Rin helps you to avoid encashing your long held saving and provide you the

required capital for your business operation. Under this SME product, if you offer any

encashable security i.e. FDR, you will be entitled to receive double amount of the value of

security provided.

Anchol (Women Entrepreneurs' Loan)

Anchol is the credit facility for the women entrepreneurs to expand and operate their businesses

at desired level.

Abad(Crop Loan)

To help farmers, share cropper and landless farmers to bear the cost of tilling of land, fertilizers,

pesticides, irrigation, seed etc. for producing different crops and vegetables.

Khamar (Farm/Non-Crop Loan)

Any justifiable capital expenses and/or working capital and Project finance.

Areas:

a) Fisheries.

b) Hatchery.

c) Poultry.

d) Beef Fattening.

e) Milking cow/Dairy.

f) Bio-gas Plant (for Farm).

g) Poultry/livestock/fish feed producer.

h) Duck rearing.

i) Integrated Farm.

j) Solar panel for farm.

k) Others (related to Agriculture).

Nabanno (For Any agri-purpose Loan)

Any justifiable capital expenses and/or working capital and Project finance.

Areas:

a) Farm machineries /Agri. Equipments (Irrigation and tilling technology/equipments,

Thresher, Tractor,    Harvester etc.

b) Solar Pumps/ solar power operated irrigational equipment.

c) Nursery.

d) Rural transport [Van, Rickshaw, Mechanized boat, Covered van (1 ton), truck for

carrying poultry/fish (1.5 ton), etc.

e) Weavers (Handloom Industry).

f) Tissue culture.

g) NGOs/MFIs for onward lending to Agriculture sector.

h) Flower cultivation.

i) Mushroom cultivation.

j) Bio-gas Plant (for individual).

k) Solar panel for house and business enterprises.

l) Rural Financing.

m) Storage and marketing of crops.

n) Others (related to Agriculture).

Part-4: Analysis of Prime Bank Limited

s of Prime Bank Limited

Financial ratios 2009 2010 2011Current ratio 0.83 0.95 0.89

Quick ratio 0.27 0.25 0.32

Inventory turnover ratio 0.05 0.06 0.07

Fixed asset turnover ratio 0.52 1.32 0.40

Total asset turnover ratio 0.02 0.03 0.02

Debt ratio 0.91 0.89 0.90

Time Interest Earned 4.24 5.38 4.06

Gross profit margin 115.76% 64.60% 89.57%

Long term debt to total debt ratio 0.05 0.06 0.06

Long term debt to total asset ratio 0.05 0.05 0.05

ROA(Return on Asset) 2.23% 1.93% 1.83%

ROE(Return on Equity) 2.46% 2.21% 2.03%

Operating Profit Margin 3.41% 2.08% 2.85%

Operating income return on investment 6.57% 6.22% 5.82%

Liquidity AnalysisThe main purpose of this ratio was to identify whether PBL had enough current assets to meet

the payment schedule of its current liabilities with a margin of safety for possible losses in

current assets, such as inventory shrinkage or collectable loans. A generally acceptable current

ratio is 2 to 1. From year 2009-2011 we can see that PBL’s ability to meet short term obligations

was under per due to ratios showing below 1 (0.83, 0.95 and 0.89 respectively) value.

4.0 Financial Analysis of Prime Bank Limited

2009 2010 20110.000.100.200.300.400.500.600.700.800.901.00

Current ratioQuick ratio

Figure 4.1: Liquidity Aanlysis of PBL

In the above picture we can see that Quick ratio is the reverse position of current ratio. However,

liquidity position is still lagging behind the benchmark by slight degree which is reflected in its

Quick Ratio, which is its ability to meet even shorter duration of obligations. An acid-test of 1:1

is considered satisfactory, yet in the year 2009 and 2010 PBL had less ability to meet its shorter-

term obligations with its most liquid assets (0.27 and 0.25 respectively). In the year 2011, the

quick ratio of PBL was 0.32, which was higher than previous two years resulting from the above

strategy undertaken by PBL. Nevertheless, the position is still vulnerable to overwhelming

withdrawals by the deposit holders living PBL in the verge of liquidity crisis.

Since, Current Ratio is significantly higher than quick ratio; PBL’s position is very complex by

nature. Generally this sort of discrepancy between two liquidity ratios marks the downturn of an

organization in tandem with the economy.

Asset Turnover Analysis

PBL was fairly consistent in utilizing their assets and increasing the efficiency of their use. In the

year 2011, PBL’s liquid assets were sold and replaced as a product for 0.07 times which was

higher than both 2009 and 2010 inventory turnover percentage (0.05 and 0.06 respectively). PBL

reduced its holding cost and spent fewer funds on rent, utilities, insurance etc. Given the nature

of financial products PBL provides the values are worth appreciation and any increase in value is

definitely favorable.

2009 2010 20110

0.2

0.4

0.6

0.8

1

1.2

1.4

Inventory turnover ratioFixed asset turnover ratioTotal asset turnover ratio

Figure 4.2: Asset Turnover Analysis of PBL

In the year 2010, the fixed asset turnover ratio was 1.32 days that was higher than the year 2009

and 2011 (0.52 and 0.40). In 2010 PBL generated more net sales from fixed-asset investments

– specifically property, plant and equipment (PP&E) – net of depreciation than 2009 and 2011.

Investment in fixed asset properties for other organizations was not being efficient for PBL.

PBL’s Total Asset Turnover ratio was same in the year 2009 and 2011. The ratio was 0.02

times. It means PBL was not efficiently using its assets in generating sales or revenue. Although

it was a higher in 2010 at 0.03 times, however, it was not significant change in the performance

of assets (loans) and it declined again in 2011.

The above values of all three asset utilization ratios explain further why the organization is

suffering from short term liquidity crisis. Inefficient turnovers of loans are hampering the return

bank can generate from using the client deposits before they withdrew their fund, or their deposit

term reaches maturity.

Financial Leverage Position

PBL thrives to achieve the best leverage ratio to fund its investments. Over the past years, their

strategies to increase their asset base through various campaigns have enabled them to achieve a

good balance between its long-term liability and assets. In year 2009 debt ratio was 0.91 and year

2011 was 0.90. That means PBL’s leverage along with the potential risks faces in terms of its

debt-load was in control as the ratio was below 1. In 2010 PBL’s 0.89 % assets were provided

via debt which is in per with the banks performance to meet its long-term obligations. However,

the debt performance yet to reach its industry par as financial institutions relies mostly on

deposits which are long term debt obligations. In the year 2009 the time interest earned of PBL

was 4.24 and in year 2011 was 4.06 which was very close to each other. That means in 2009 and

2011 less earnings are available to PBL to meet interest payments and that the business is more

vulnerable to increases in interest rates. But in the year 2010 the time interest ratio was increased

dramatically at 5.38 which indicate that PBL was more defensive to increases in interest rates.

They constantly revised their interest rate structures to support both deposits and loans

periodically, keeping the rates provided on deposits much shorter than what is provided against

loans.

2009

2010

2011

0.00 1.00 2.00 3.00 4.00 5.00 6.00

Long term debt to total asset ratioLong term debt to total debt ratioTime Interest ratioDebt ratio

Figure 4.3: Financial Leverage Position of PBL

Long term debt to total asset and Long term debt to total debt shows that how a company fills the

debt in order to finance a company. As shortest time the company meet the liability which is

better for company. In year 2009 long term debt to total debt was 0.05 and year 2010 was 0.06

which means bank was tried to meet the shortest time and year 2011 it was 0.06. The long term

debt to total asset means how a company is sufficient or good to meet its debt. In year 2009,

2010 and 2011 PBL’s long term debt to total asset was 0.05 that means bank was sufficient to

meet its debt.

Profitability position

Profit margin is the mirror of how a company earned in opposition of sales. It gives a complete

scenario of companies’ profit. It encourages company to maximize the profit. Usually if a

business is liquid and efficient it should also be Profitable. However, although its liquidity and

efficiency suffers, profitability does not get below average position.

2009 2010 2011

0.00

20.00

40.00

60.00

80.00

100.00

120.00

Gross profit marginReturn on AssetReturn on EquityOperating profit marginOperating income return on investment

Figure 4.4: Profitability Position of PBL

The graph above shows Gross profit margin was good in year 2009 but in year 2010 it was go

down but in the tighter managerial control was able to pull its value back to a positive kick-off

and in year 2011 it was in good position 89.57%. The same picture was happened in operating

profit margin. In year 2009 it was 3.41% and year 2010 it was 2.08% which means it was

decreased 1.33% but in year it was improved the position in year 2011 it was 2.85% which was

increased from 0.77% which is better for bank. Return on asset and Return on equity shows that

how a company’s net income and EBIT support the company’s total asset and equity In the year

2009, PBL generated 2.23% of profit relative to its total assets (ROA). The ratio declined at 3%

in year 2010. In year 2011 it also decreased in 10% which was very much bad for the bank. In

case of Return On Equity (ROE) position was also not good it was a declining trend from 2.46%

to 2.03% in year 2009-2011. Operating profit margin is a key factor for a bank or other

organization. PBL’s operating profit margin in year 2009 was 3.41% and it was declined in year

2010 was 2.08% which means bank was not able to control general and administration expense

and also there is a cost of manufacturing product was increasing , so bank can’t meet that

expense. But in year 2011 it was increasing from 2.08% to 2.85% that is a good sign. Operating

income return on investment indicates the effectiveness of management at generating operating

profits on the firm’s assets as measured by operating profit relative to total assets. Operating

income return on investment of PBL in year 2009 was 6.57% and it was declined in year 2010

6.22%. It means bank is not met the operating profit properly that reason it is decreasing from

year to year. In year 2011 it was 5.82%.So, bank must aware about the operating income return

on investment position properly.

SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,

Opportunities, and Threats involved in a project or in a business venture. SWOT is an acronym

for the internal strength and weakness of a firm and the environmental Opportunity and Threat

facing that firm. It involves specifying the objective of the business venture or project and

identifying the internal and external factors that are favorable and unfavorable to achieving that

objective. The technique is credited by Albert Humphrey.

4.1 SWOT Analysis of Prime Bank Limited

Figure 4.5: SWOT Analysis

So if we consider Prime Bank as a business firm and analyze its strengths, weaknesses,

opportunities and threat the scenario will be as follows:

Strengths of Prime Bank Limited:

A powerful strategy supported by good corporate governance to increase shareholders

value by being efficient, professional transparent and accountable to society and

environment.

PBL has strong brand image as it has won the prestigious ICAB award for being the best

bank in Bangladesh and “A” graded bank according to the CAMEL rating.

Products and services are as diversified as the market segment demands and the customer

group range from individuals, big corporate clients, NGOs to Non residents.

PBL has strong capital position.

The asset and liability committee (ALCO) of the bank maintains a satisfactory trade-off

between liquidity and profitability.

The bank is able to achieve higher growth of loans and deposit than the industry rate.

Prime bank limited has strong balance sheet with favorable ROE and ROA.

Low non-performing assets or classified loans of the bank signify strengths in credit

customer selection.

The bank has covered all the global locations of homebound remittance.

The bank has now a network of 89 branches throughout the country.

The quality of asset is one of the strong areas of operation of PBL.

Many of the branches of PBL are under CBS T24. This is helping to minimize the errors.

PBL has well diversified asset portfolio to retail, SME and capital market.

PBL has a good credit rating of AA which is rated by Credit Rating and Information

Services Limited (CRISL).

Weaknesses of Prime Bank Limited:

All of the branches of PBL are still not under the CBS T24. This lacking is creating

operating inefficiency such as human error, fraud and forgeries.

The junior level management of PBL is not as efficient as the mid and top level

management. This may be because of the lack of proper training to the junior and training

officer.

Risk management of lending portfolio often require stress testing which are based on

sophisticated mathematics tools and cannot solely be dependent on existing MIS. The

level of technology in banking industry is yet acquiring that sophistication.

the employees of the branches which are under T24 are facing some sort of problem to

cope up with the new software that is why it is taking more time to serve a customer.

The ATM booths owned by the PBL are not sufficient in comparison to the other banks.

PBL has lack of manpower to serve the growing customer demand.

Opportunities of Prime Bank Limited:

PBL took a strategic shift towards developing and expanding the SME financing which

has received considerable attention of policy makers.

Implementation of world class CBS T24 in number of branches will reduce fraud and

forgeries and other operating risks arising from human error.

This bank has establish remittance arrangement with 24 leading exchange companies and

banks including the global money transfer agency Western Union in 2007.

The bank introduced direct selling service recruiting highly trained and customer focused

professionals.

Finance Act of 2007-08 has withdrawn the withholding tax on purchases by credit card

and it is expected that credit card business will expand rapidly in near future.

Threats of Prime Bank Limited:

Changes in general economic condition resulting from calamities and political

disturbance.

The bank is now facing increasing interest sensitive customer who are demanding

higher rate of return.

Changes in government policy -

Increase in tax, VAT on banking services,

increase in corporate tax rate,

Increase in CRR and SLR of the banks,

Withdrawal of incentives given to some thrust sectors which may make the

project slow moving,

Directive to reduce the lending rates to finance essential items,

Increase in provisioning requirement would reduce the ROA and ROE,

Reducing the margin ratio for investment accounts.

Volatility in interest rate.

Introduction of compliance issues raised by the international forums which is likely to

affect the export growth.

The rising price of oil and other importable items have exerted pressure on dollar which

has squeezed the exchange and fee earning of the bank.

Lots of new bank is entering in the market recently which is a great threat to an existing

bank to offer better service.

4.2 Analysis of Porter’s five forces of Prime Bank Limited

Michael E. Porter’s well-known framework, known as the five forces model focuses forces that

shape competition within an industry. The stronger the five forces, the more limited is the ability

of established companies to raise market share and earn greater profits. The influence of the five

forces in the banking industry has been discussed below:

Figure 4.6: Porter’s 5 Forces in Banking Industry of Bangladesh

Force 1-Threat of New Entrants:

During the last 5 years, Bangladeshi Banking industry has undergone several changes in terms of

its competitiveness. Several new PCB has commenced their business along with Foreign Banks,

being attracted to the large and lucrative emerging economy of Bangladesh. Due to high rising

income and more inclination towards consumption based spending, several banks have tried to

capitalize over such consumer and business attitude. Private local banks such as HSBC Bank,

Eastern Bank, DBBL, City Bank, Islami Bank Bangladesh and Dhaka Bank have outperformed

many of the state-owned banks and are in par with the Foreign Banks. Among the foreign banks,

Standard chartered, Bank-Alfalah, Citi Bank NA and Commercial Bank of Ceylon is booming

the market since their commencement.

However, strong and long presence of Prime Bank Limited has allowed to the bank to create a

dynamic customer preference and brand loyalty, which has prevented much of the market share

being siphoned by the PCBs. Nevertheless, in order for PBL to sustain its competitive advantage

as First-Mover and high brand awareness, it needs to develop more innovative and aggressive

financial products that could keep competition further off-site.

Moreover, PBL has tremendous local knowledge and old partners in business and its network

(both in Bangladesh and especially in the global market) is excessively large for other banks to

compare. Thus, it will be exceptionally difficult for any new competitor to pose any serious

threat to PBL.

Force 2-Threat of Substitutes:

Upcoming competition is being severely intensified as both domestic and foreign banks are

coming up with innovative product solutions to beat PBL at its own game. BRAC bank is

already considered a huge competitor of PBL as they growing at a phenomenal rate. Other banks

like EBL, DBBL are also offering competitive products. These banks are taking away some

market share from PBL. As the number of competition is growing the threat of substitutes is also

increasing.

Moreover, in an era defined by blurring differences between banking and non-banking financial

institutions, PBL will always need to be on the look-out for rivals emerging from a different

horizon that might seem distant at the beginning. Microfinance institution is one example of a

type of non-banking financial institution that has started eating up conventional banks’ share of

credit in the overall industry. Although PBL has not been affected by this as the bank focuses on

larger corporate clients (and has less services outside the capital city), other non-banking

institutions might come up posing serious threat to the bank.

Force 3-Bargaining Power of Clients:

The extent of bargaining power is different for the individual customers of personal banking and

corporate customers. Since, deposits made by individual consumer clients are insignificant,

compared to the amount of single deposit made by a corporation, consumers tend to have low-

zero bargaining power in terms of return negotiation. However, owing to the large balance of

corporate deposits, Corporations tend to enjoy more privilege form the banks. They are more

entitled to banks special rate while depositing and borrowing transaction takes place between the

organizations. Besides, wide variety of services and products which are offered by PBL is likely

to be offered by domestic banks and thus customers get lots of choice when it comes to special

transaction than other private bank which is provide PBL in a superior way. Hence PBL

continues to enjoy superior bargaining power over its customers.

Force 4- Bargaining Power of Depositors:

Cliental and corporate depositors are considered to be the biggest supplier for a banking

institution. Their provided deposits are the source of fund that the bank reinvest in different

assets in form of Loans and Advances, Securities and Repos to earn profit and sustain the

business. The customers coming to PBL are able to afford the high charge rates applicable to

them compared to the other banks. So the bargaining powers of depositors are extremely high

upon accumulation. Unless the bank can understand their needs, and offer them proper value-

added services for which the customers are paying fees, the depositing customers can leave the

bank, putting the bank in a financial insolvency.

Force 5- Rivalry among Existing Banks:

For the last 5 years, intensive competition is prevailing among the banks to increase their market

share and drive out competition. PBL became the giant with around 80% market share of the

private banks and thus PBL still remains number one bank in Bangladesh. Moreover, other

private local banks such as-DBBL, City Bank, HSBC Bank, Islami Bank Bangladesh, Eastern

Bank and Dhaka Bank are rapidly expanding their credit portfolio and thus can be serious

competition for PBL.

Existing local banks are also aggressively marketing their products and offering attractive

lending and deposit rates, while at the same time opening up several value-added services such

as SMS, Internet and Phone-banking which can grab customers. Until recently The City Bank of

Bangladesh has started offering American Express cards and products for exclusive customers.

Such assertive activity can harm PBL’s position (especially since PBL does not yet have its own

credit card) in the future unless the bank reacts proactively to these competitors.

To sum-up the industry condition, financial sector is active more than ever and the competition is

being strengthened every year. It will be wise for PBL to start reacting and take action against its

market position, if it intends to keep its title as one of the market leaders in the financial sector.

Part-5: Project Part

5.0 Literature Review

Customer satisfaction, a term frequently used in marketing, is a measure of how products and

services supplied by a company meet or surpass customer expectation. Customer satisfaction is

defined as "the number of customers, or percentage of total customers, whose reported

experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.

Customer satisfaction is mainly a measure of how products and services supplied by a company

meet or surpass customer expectation.

Customer Satisfaction is a pillar to the success of a business. This is easily forgotten in times that

place acquiring new customers into the center of business and marketing strategies. A high

customer satisfaction will bring loyal customers and therefore a huge potential: they buy more

often, with a higher order value, and they are likely to bring new customers.

Customer satisfaction is defined as "The number of customers, or percentage of total

customers, whose reported experience with a firm, its products, or its services (ratings)

exceeds specified satisfaction goals. (Farris et al, 2010)

The key factors influencing customers’ selection of a bank include the range of services, rates,

fees and prices charged (Abratt and Russell, 1999). It is apparent that superior service, alone, is

not sufficient to satisfy customers. Prices are essential, but not more important than service and

relationship quality. Furthermore, service excellence, meeting client needs, and providing

innovative products are key to success in the banking industry. Most private banks claim that

creating and maintaining customer relationships are important to them and they are aware of the

positive values that relationships provide. (Colgate et al., 1996).

Figure 5.1: Customer Satisfaction Model

Ioanna (2002) further proposed that product differentiation is impossible in a competitive

environment like the banking industry. Banks everywhere are delivering the same products. For

example, there is usually only minimal variation in interest rates charged or the range of products

and services available to customers. Bank prices are fixed and driven by the marketplace. Thus,

bank management tends to differentiate their organization from competitors through service

quality. Service quality is an influential element that impacts customers’ satisfaction level in the

banking industry. In banking, quality includes differing types of convenience, reliability, services

portfolio, and more importantly, the staff delivering the service.

Banks must be able to provide “up-close” personal service for customers who come with high

expectations. For customers who value convenience most, banks must offer the latest product

such as electronic banking, touch-tone phone account access and internet banking. Clearly,

customer value can be a strong driver of customer retention (Slater, 1997; Woodruff, 1997)

Today’s consumers have more choices for their financial needs than ever before. Technology,

globalization, increased competition and increased consumer mobility have dramatically changed

the way people bank (Harwood, 2002). Many financial institutions are looking at branding

techniques to differentiate themselves. Harwood (2002) argued that branding is critical in the

banking industry where all firms offer about the same kinds of products. Accordingly, bankers

must be able to build and manage their bank’s image in order to clearly define the differences

between their bank and its competitors.

Figure 5.2: Customer Satisfaction Key Drivers

Switching barriers have been used as marketing strategies to make it costly for customers to

switch to another organization. Such barriers include search costs, transaction costs, learning

costs, loyal customer discounts and emotional costs (Fornell, 1992). These barriers provide

disincentives for the customer to leave the current organization. Curasi and Kennedy (2002) have

shown that customer satisfaction does not predict the continuation of the relationship. High

switching costs are an important factor binding the customer to the service organization. Even

with relatively low levels of satisfaction, the customer continues to patronize the service provider

because repurchasing is easier and more cost effective than searching for a new provider (Curasi

and Kennedy, 2002).

Social and technological change has had a dramatic impact on banking. These developments,

such as internationalization and unification of money markets and the application of new

technologies in information and communications systems to banking, have forced banks to adopt

strategic marketing practices. These have included offering extended services, diversification of

products, entry into new markets, and emphasizing electronic banking (Mylonakis et al., 1998).

The Bank Benchmarking study offers an insight into the performances of retail banks operating in the

UAE with regards to response time and service quality that UAE retail banks deliver through all channels,

Ethos Consultancy, the region's leaders in customer service excellence, conducted 1,500 visits to

the 29 banks covered and data collected measured 80 different criteria which mean 40,000

responses were analyzed. The result shows the following key drivers in customer satisfaction of

banks.

Survey DesignThe Survey was systematically designed to capture a representative view of Employee

Engagement Index. Standard questionnaire response approach was used to evaluate the overall

approach of the officials. The questions were distributed across a wide variety of items.

Instrument Development (Questionnaire)Questionnaires are the most frequently used data collection method in educational and evaluation

research. Questionnaires help gather information on knowledge, attitudes, opinions, behaviors,

facts, and other information. Development of a valid and reliable questionnaire involves several

steps taking considerable time. (Malhotra, 2009) The following explanation describes the

5.1 RESEARCH METHODOLOGY

sequential steps involved in the development and testing of questionnaires used for data

collection.

Step 1: Background

In this initial step, the purpose, objective, research questions, and hypothesis of the proposed

research are examined. Determining who the audience, their background, especially their

educational/readability levels, access, and the process used to select the respondents (sample vs.

population) are also part of this step. (Malhotra, 2009).The purpose of my questionnaire was

basically to find out the opinions of PBL employees about the relationship between employee

engagement and organizational success.

Step 2: Questionnaire Conceptualization

After developing a thorough understanding of the research, the next step was to generate

statements for the questionnaire. In this step, content (from literature/theoretical framework)

were transformed into statements/questions. In addition, a link among the objectives of the study

and their translation into content is established. (Malhotra, 2009) Major variables (independent

and dependant) are identified and defined in this step.

Step 3: Format and Data AnalysisIn Step 3, the focus was on writing statements, selection of appropriate scales of measurement,

questionnaire layout, format, question ordering, and proposed data analysis. Scales are devices

used to quantify a subject's response on a particular variable. Understanding the relationship

between the level of measurement and the appropriateness of data analysis is important. For

example, if regression or correlation is one mode of data analysis, the dependent variable must

be measured on an interval/ratio scale (strongly disagree to strongly agree). (Lind, Marchal &

Wathen, 2008) .

Step 4: Establishing Validity

As a result of Steps 1-3, a draft questionnaire is ready for establishing validity. Validity is the

amount of systematic or built-in error in measurement. Validity is established using a panel of

experts (in this case, my faculty member).Which type of validity (content, construct, criterion,

and face) to use depends on the objectives of the study. (Malhotra, 2009)

The following questions were addressed in Step 4:

Is the questionnaire valid? In other words, is the questionnaire measuring what it

intended to measure (relationship between employee engagement and organizational

success)

Does it represent the content?

Is it appropriate for the sample/population?

Does the instrument look like a questionnaire?

Is the questionnaire comprehensive enough to collect all the information needed to

address the purpose and goals of the study?

Step 5: Establishing Reliability

In this final step, reliability of the questionnaire was carried out. Reliability refers to random

error in measurement. Reliability indicates the accuracy or precision of the measuring

instrument. (Lind, Marchal & Wathen, 2008). After the survey was over, I wanted to see whether

it offered a consistent reply from the respondents. The survey seek to answer the question, does

the questionnaire consistently measure whatever it measures?

Data collected from the survey was analyzed using SPSS (Statistical Package for Social

Sciences) software. The reliability coefficient (alpha) can range from 0 to 1, with 0 representing

an instrument with full of error and 1 representing total absence of error. A reliability coefficient

(alpha) of .40 or higher is considered acceptable reliability. (Lind, Marchal & Wathen, 2008)

The process is illustrated below:

Figure 5.3: Instrument Development Process

Factor Analysis

Factor analysis is a method of data reduction.  It does this by seeking underlying unobservable

(latent) variables that are reflected in the observed variables (manifest variables).  There are

many different methods that can be used to conduct a factor analysis (such as principal axis

factor, maximum likelihood, generalized least squares, unweighted least squares), There are also

many different types of rotations that can be done after the initial extraction of factors, including

orthogonal rotations, such as varimax and equimax, which impose the restriction that the factors

STEP - 5

STEP - 4

STEP - 3STEP - 2STEP - 1

Questionnaire Format

Appropriate Scale of

Measurement

Knowledge Attitudes Opinions Behaviors

Variables: Dependant & Independent

Generate Statements

Panel of Experts

Approval

Field TestRevision Readability

Test

Purpose & Goals,

Objectives.

Target Audience,

Population

Observe

Result

Run Reliability

Test

Conduct Survey

cannot be correlated, and oblique rotations, such as promax, which allow the factors to be

correlated with one another.  Given the number of factor analytic techniques and options, it is not

surprising that different analysts could reach very different results analyzing the same data set. 

However, all analysts are looking for simple structure.  Simple structure is pattern of results such

that each variable loads highly onto one and only one factor. 

Primary Data:As mentioned earlier, a survey was conducted with a structured questionnaire. The research was

based on the relationship between some independent variables and some dependent variables.

The independent variables are:

a. Punctuality

b. Sincerity.

c. Right solution

d. Well information provider

e. Prompt services

f. Willingness to help.

g. Fair Fees structure.

h. Banking Environment

i. Individual attention.

j. Products and services offered.

k. Availability of ATM Booth.

l. Feeling safe in transactions.

m. Easy of reaching officer.

n. Consistency of the services.

o. Punctuality and Courteous manner of the officer.

p. No. of Branches.

The dependent variable is:

Customer Satisfaction.

The questionnaire was divided into two (2) sections. First section was used for respondents’

different Q & A part and the second section was used for the independent variables. In each

section, there were 4-5 relevant statements. In second section the participants had to tick in the

boxes provided beside each question according to the extent of their agreement (scale provided at

the beginning of the questionnaire).

Scale rating provided was:

1 =‘Strongly Agree’

2 = ‘Agree’

3 = ‘Neutral’

4 = ‘Disagree’

5 = ‘Strongly Disagree’

Secondary Data

While doing this research I took help of some secondary data. Most of the information was

obtained through internet browsing. I also went through couple of books on customer

satisfaction. PBL’s brochures, booklets and intranet were also of great help.

Sample Size

The sample size for this research was 60.

Type of Respondent

All the respondents were randomly selected for the survey and were both male and female. The

participants of the conducted survey were selected from the different level of customers of the

PBL. Most of the people participated in the survey were between 20 to 50+ years of age. Most of

them are employee and businessman of different organization. Most of their educational

background ranged from undergraduate to post graduate.

Hypothesis:

Any undecided explanation can be referred to as a hypothesis which we use in many managerial

decisions. For example: qualified employees generate more revenue. This statement is still

faltered because there is no proof of its validity. This is why we conduct hypothesis testing

which shows the validity of the explanation. (Malhotra, 2009)

This test tries to prove the validity of the given hypothesis. The test involves a series of

experiments in many different conditions. If the hypothesis does not stand up to the tests in all

conditions then a new one is formed and submitted to the same hypothesis testing. If the new

hypothesis passes in all conditions then it can be considered as a reliable and valid theory.

I have used statistical hypothesis testing for which I have collected large quantities of data

through questionnaires and interview. Then I have conducted tests (mean, correlation, reliability,

regression).

In a hypothesis test there are two hypotheses: null hypothesis and alternative hypothesis. Null

hypothesis is the accepted decision and alternative hypothesis is the decision that one tries to

prove.

Importance of Hypothesis Testing:

It enables managers to better understand quality data. Data collection is the foundation for

employee evaluation but without correct data processing, it is difficult to make an objective

conclusion. (Malhotra, 2009).For instance, the success rate of different groups is 15% and 10%,

respectively. In this case it would be an incomplete judgment saying that one group is better than

the other because other variables like working conditions, job satisfaction are relevant to job

performance. On this occasion, hypothesis testing is instrumental in explanation of this dilemma.

Test Statistic

It is the random variable X whose value is tested to arrive at a decision. The Central Limit

Theorem states that for large sample sizes (n > 30) drawn randomly from a population, the

distribution of the means of those samples will approximate normality, even when the data in the

parent population are not distributed normally. A z statistic is usually used for large sample sizes

(n > 30), but often large samples are not easy to obtain, in which case the t-distribution can be

used. The population standard deviation s is estimated by the sample standard deviation, s. The t

5.2 Description about Hypothesis Testing

curves are bell shaped and distributed around t=0. The exact shape on a given t-curve depends on

the degrees of freedom. In case of performing multiple comparisons by one way ANOVA, the F-

statistic is normally used. It is defined as the ratio of the mean square due to the variability

between groups to the mean square due to the variability within groups. The critical value of F is

read off from tables on the F-distribution knowing the Type-I error and the degrees of freedom

between & within the groups.

Rejection Region:

It is the part of the sample space (critical region) where the null hypothesis H0 is rejected. The

size of this region is determined by the probability (a) of the sample point falling in the critical

region when H0 is true. It is also known as the level of significance, the probability of the value

of the random variable falling in the critical region.

My Hypothesis:

In my project I have shown the relationship between different factors and customer satisfaction.

To prove my point, I have taken twelve independent variables. Then I have shown the effect that

these variables have relation with the factors of customer satisfaction. So my hypothesis in this

project is as follows:

The level of customers’ satisfaction about the services provided by PBL is positively

related to the level of customers’ exposure about the bank’s service packages.

Customer expectation of service matches bank’s service promise.

PBL’s Customer involvement with the bank is high.

It is expected that customer is satisfied with the communication of the bank.

It is expected that customer is satisfied with the security of the bank.

It is expected that customer are satisfied with the online banking (ATM cards, Debit

cards, Master Cards, Credit etc.)

Customer satisfaction is related to customer loyalty.

Customer loyalty is related to profitability.

Demographic Analysis:

As mentioned earlier, total number of respondents was 60. They can be classified in the

following types-

22%

40%

25%

13%

Age of the respondent

20-30 years 30-40 years40-50 years50+ years

Figure 5.4: Age of the Respondent

In my survey I found that 40% of the respondent is 30-40 years, 25% respondent is 40-50 years,

22% respondent is 20-30 years and 13% respondent is 50+ years. It indicates that most of the

respondent is young people. It means young people are more interested than other bank rather

than other bank.

SSC/O le

vel

HSC/ A le

vel

Undergr

aduat

e

Post G

raduat

e0

10

20

30

40

Education level of the respondent

Figure 5.5: Education level of the respondent

In the above graph shows that most of the respondents are postgraduate qualified. They are

almost 40% which is quite impressive for the bank.

Reliability test

In this area I calculate some statistical test-

Statistics

Sex of the respondent

N Valid 60

Missing 0

Mode 1

Sex of the respondent

Frequency Percent Valid Percent

Cumulative

Percent

Valid male 39 65.0 65.0 65.0

female 21 35.0 35.0 100.0

Total 60 100.0 100.0

In the above table I found that 65% respondents are male and 35% are female. The frequency is

39 and female is 21.

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Age of the respondent 60 1 4 2.30 .962

Valid N (listwise) 60

In my survey I calculate descriptive statistic of the age of the respondent and I found minimum

point is1 which means 20-30 years, maximum is 4 which means 50+ years, mean respondent is

2.30 and standard deviation of the respondent is .962.

Descriptive

Sex of the respondent Statistic Std. Error

Age of the respondent male Mean 2.38 .158

99% Confidence Interval for

Mean

Lower Bound 1.95

Upper Bound 2.81

5% Trimmed Mean 2.37

Median 2.00

Variance .980

Std. Deviation .990

Minimum 1

Maximum 4

Range 3

Interquartile Range 1

Skewness .167 .378

Kurtosis -.936 .741

female Mean 2.14 .199

99% Confidence Interval for

Mean

Lower Bound 1.58

Upper Bound 2.71

5% Trimmed Mean 2.10

Median 2.00

Variance .829

Std. Deviation .910

Minimum 1

Maximum 4

Range 3

Interquartile Range 2

Skewness .574 .501

Kurtosis -.116 .972

In the above table I shows that the age respondent which I measure 99% interval measure which

is indicate age of the respondent is lies 1.58 and 2.71 point.

There is some test-1. How do you find the overall service of PBL?

a. Very Satisfiedb. Satisfiedc. Neutrald. Dissatisfiede. Very Dissatisfied

2. Customer Satisfaction in different dimensions (factors): What is your perception about

PBL’s service in the following areas- (1-Very satisfied, 2-Satisfied, 3- Dissatisfied, 4-

Very dissatisfied, 5-Neutral).

Customer Satisfaction Factors Ranks

Punctuality 1 2 3 4 5

Sincerity 1 2 3 4 5

Right solution 1 2 3 4 5

Well information provider 1 2 3 4 5

Prompt services 1 2 3 4 5

Willingness to help 1 2 3 4 5

Fair Fees structure 1 2 3 4 5

Banking Environment 1 2 3 4 5

Individual attention 1 2 3 4 5

Products and services offered 1 2 3 4 5

Availability of ATM booth 1 2 3 4 5

Feeling safe in transactions 1 2 3 4 5

Easy of reaching officer 1 2 3 4 5

Consistency of the services 1 2 3 4 5

Accuracy of services 1 2 3 4 5

No. of Branches 1 2 3 4 5

The Alpha and Standardized Item Alpha were obtained as follows-

Reliability Statistics

Cronbach's

Alpha

Cronbach's

Alpha Based on

Standardized

Items N of Items

.453 .456 2

Alpha Value = 0.453

As the Alpha Value is greater than 0.4, therefore we can say that the data is reliable and there is

no need for Factor Analysis that would have required Data Reduction and further analysis.

This shows that all the questions in that section were objective, accurate and positive.

Comment:

Systematic development of the questionnaire for data collection is important to reduce

measurement errors. Well-crafted conceptualization of the content and transformation of the

content into questions is inessential to minimize measurement error. Careful attention to detail

and understanding of the process involved in developing a questionnaire are of immense value.

Not following appropriate and systematic procedures in questionnaire development, testing, and

evaluation may undermine the quality and utilization of data. (Malhotra, 2009). Since I tried to

follow all the logical steps in making the questionnaire, it helped me to come out with responses

which are truly representative.

Descriptive Statistics:

The table below shows the mean value and standard variations of all the variables used.

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Punctuality of the officer 60 1 2 1.38 .490

Sincerity of the officer 60 1 2 1.93 .252

Right solution of the problem 60 1 2 1.95 .220

Well information provider 60 1 2 1.95 .220

Prompt service 60 1 2 1.95 .220

Willingness to help 60 1 2 1.98 .129

Fair Fees structure 60 1 5 1.22 .715

Banking Environment 60 1 5 2.00 .451

Individual attention 60 1 5 2.15 .777

Products and services offered 60 1 3 1.93 .312

Availability of ATM booth 60 1 5 2.02 .748

Feeling safe in transactions 60 1 5 1.23 .767

Easy of reaching officer 60 1 5 1.38 .885

Consistency of the services 60 1 5 2.17 .785

Accuracy of services 60 1 5 1.80 .755

No. of Branches 60 1 5 1.13 .724

Valid N (listwise) 60

From the above statistics we can see that most of the customers are satisfied having positive

answers in each of the questions. However, in case of availability of ATM booths, bank’s free

structure some customer gave neutral answer. So, we will do further research to prove our

hypothesis.

Correlation

In Pearson correlation, we will find the correlation direction and magnitude among the

relationship between independent variables Punctuality, Sincerity, Right solution, Well

information providing, Prompt services, Willingness to help, Fair Fees structure, Banking

Environment, Individual attention, Products and services offered, Availability of ATM Booth

Easy to reaching officer, Accuracy of services ,No. of branches and Make you feel safe in your

transactions with dependent variable How do you find the overall service of PBL are discussed

below-

Over all service * Punctuality of the officer

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Exact Sig. (2-

sided)

Exact Sig. (1-

sided)

Pearson Chi-Square .756a 1 .384

Continuity Correctionb .021 1 .885

Likelihood Ratio 1.350 1 .245

Fisher's Exact Test 1.000 .512

Linear-by-Linear Association .744 1 .388

N of Valid Cases 60

a. 2 cells (50.0%) have expected count less than 5. The minimum expected count is .60.

b. Computed only for a 2x2 table

Over all service * Sincerity of the officer

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Exact Sig. (2-

sided)

Exact Sig. (1-

sided)

Pearson Chi-Square .756a 1 .384

Continuity Correctionb .021 1 .885

Likelihood Ratio 1.350 1 .245

Fisher's Exact Test 1.000 .512

Linear-by-Linear Association .744 1 .388

N of Valid Cases 60

a. 2 cells (50.0%) have expected count less than 5. The minimum expected count is .60.

b. Computed only for a 2x2 table

Over all service * Right solution of the problem

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Exact Sig. (2-

sided)

Exact Sig. (1-

sided)

Pearson Chi-Square .557a 1 .455

Continuity Correctionb .000 1 1.000

Likelihood Ratio 1.003 1 .317

Fisher's Exact Test 1.000 .609

Linear-by-Linear Association .548 1 .459

N of Valid Cases 60

a. 2 cells (50.0%) have expected count less than 5. The minimum expected count is .45.

b. Computed only for a 2x2 table

Over all service * Well information provider

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Exact Sig. (2-

sided)

Exact Sig. (1-

sided)

Pearson Chi-Square .557a 1 .455

Continuity Correctionb .000 1 1.000

Likelihood Ratio 1.003 1 .317

Fisher's Exact Test 1.000 .609

Linear-by-Linear Association .548 1 .459

N of Valid Cases 60

a. 2 cells (50.0%) have expected count less than 5. The minimum expected count is .45.

b. Computed only for a 2x2 table

Over all service * Prompt service

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Exact Sig. (2-

sided)

Exact Sig. (1-

sided)

Pearson Chi-Square .557a 1 .455

Continuity Correctionb .000 1 1.000

Likelihood Ratio 1.003 1 .317

Fisher's Exact Test 1.000 .609

Linear-by-Linear Association .548 1 .459

N of Valid Cases 60

a. 2 cells (50.0%) have expected count less than 5. The minimum expected count is .45.

b. Computed only for a 2x2 table

Over all service * Willingness to help

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Exact Sig. (2-

sided)

Exact Sig. (1-

sided)

Pearson Chi-Square .179a 1 .672

Continuity Correctionb .000 1 1.000

Likelihood Ratio .328 1 .567

Fisher's Exact Test 1.000 .850

Linear-by-Linear Association .176 1 .674

N of Valid Cases 60

a. 2 cells (50.0%) have expected count less than 5. The minimum expected count is .15.

b. Computed only for a 2x2 table

Over all service * Fair Fees structure

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 1.398a 4 .844

Likelihood Ratio 2.433 4 .657

Linear-by-Linear Association .972 1 .324

N of Valid Cases 60

a. 8 cells (80.0%) have expected count less than 5. The minimum

expected count is .15.

Over all service * Banking Environment

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square .756a 2 .685

Likelihood Ratio 1.350 2 .509

Linear-by-Linear Association .000 1 1.000

N of Valid Cases 60

a. 4 cells (66.7%) have expected count less than 5. The minimum

expected count is .15.

Over all service * Individual attention

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 2.118a 4 .714

Likelihood Ratio 3.586 4 .465

Linear-by-Linear Association .394 1 .530

N of Valid Cases 60

a. 8 cells (80.0%) have expected count less than 5. The minimum

expected count is .15.

Over all service * Products and services offered

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square .276a 2 .871

Likelihood Ratio .417 2 .812

Linear-by-Linear Association .215 1 .643

N of Valid Cases 60

a. 4 cells (66.7%) have expected count less than 5. The minimum

expected count is .15.

Over all service * Availability of ATM booth

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 4.246a 4 .374

Likelihood Ratio 5.445 4 .245

Linear-by-Linear Association 1.899 1 .168

N of Valid Cases 60

a. 7 cells (70.0%) have expected count less than 5. The minimum

expected count is .15.

Over all service * Feeling safe in transactions

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square .372a 2 .830

Likelihood Ratio .669 2 .716

Linear-by-Linear Association .269 1 .604

N of Valid Cases 60

a. 3 cells (50.0%) have expected count less than 5. The minimum

expected count is .30.

Over all service * Easy of reaching officer

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 6.394a 4 .172

Likelihood Ratio 4.989 4 .288

Linear-by-Linear Association .051 1 .822

N of Valid Cases 60

a. 7 cells (70.0%) have expected count less than 5. The minimum

expected count is .15.

Over all service * Consistency of the services

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square .668a 2 .716

Likelihood Ratio .922 2 .631

Linear-by-Linear Association .478 1 .490

N of Valid Cases 60

a. 4 cells (66.7%) have expected count less than 5. The minimum

expected count is .30.

Over all service * Accuracy of services

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square .392a 2 .822

Likelihood Ratio .688 2 .709

Linear-by-Linear Association .331 1 .565

N of Valid Cases 60

a. 3 cells (50.0%) have expected count less than 5. The minimum

expected count is .30.

Over all service * No. of Branches

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Exact Sig. (2-

sided)

Exact Sig. (1-

sided)

Pearson Chi-Square .365a 1 .546

Continuity Correctionb .000 1 1.000

Likelihood Ratio .662 1 .416

Fisher's Exact Test 1.000 .720

Linear-by-Linear Association .359 1 .549

N of Valid Cases 60

a. 2 cells (50.0%) have expected count less than 5. The minimum expected count is .30.

b. Computed only for a 2x2 table

From the above table it is seen that all the factors have positive correlation with the customers’

perspective of overall service. The easy of reaching officer and availability of the ATM booth

have a moderate correlation than other services.

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .347a .120 -.207 .396

a. Predictors: (Constant), No. of Branches, Banking Environment,

Availability of ATM booth, Consistency of the services, Accuracy of

services, Products and services offered, Easy of reaching officer, Right

solution of the problem, Punctuality of the officer, Well information

provider, Feeling safe in transactions, Prompt service , Individual

attention, Sincerity of the officer, Willingness to help, Fair Fees

structure

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression .921 16 .058 .368 .983a

Residual 6.729 43 .156

Total 7.650 59

a. Predictors: (Constant), No. of Branches, Banking Environment, Availability of ATM booth,

Consistency of the services, Accuracy of services, Products and services offered, Easy of reaching

officer, Right solution of the problem, Punctuality of the officer, Well information provider, Feeling

safe in transactions, Prompt service , Individual attention, Sincerity of the officer, Willingness to

help, Fair Fees structure

b. Dependent Variable: Over all service

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) .742 1.332 .557 .580

Punctuality of the officer -.048 .126 -.065 -.382 .704

Sincerity of the officer -.144 .507 -.101 -.284 .778

Right solution of the problem .076 .377 .046 .202 .841

Well information provider .161 .327 .098 .493 .624

Prompt service -.089 .551 -.055 -.162 .872

Willingness to help .376 .899 .135 .418 .678

Fair Fees structure -.069 .177 -.138 -.393 .696

Banking Environment .018 .142 .023 .128 .899

Individual attention -.062 .088 -.133 -.698 .489

Products and services offered -.131 .238 -.113 -.549 .586

Availability of ATM booth .131 .081 .273 1.625 .112

Feeling safe in transactions -.050 .109 -.107 -.462 .647

Easy of reaching officer .018 .063 .044 .286 .776

Consistency of the services .025 .070 .055 .358 .722

Accuracy of services -.033 .073 -.068 -.445 .659

No. of Branches -.063 .097 -.127 -.653 .517

a. Dependent Variable: Over all service

All the above mentioned variables are responsible for the variation of the dependant variable

PBL customers’ perspective of overall services. Around sixty percent of the variation of

customers’ perspective of overall services can arise due to the above sixteen factors.

Hypothesis-1

Ho- The level of customers’ satisfaction about the services provided by PBL is not

positively related to the level of customers’ exposure about the bank’s service packages.

H1- The level of customers’ satisfaction about the services provided by PBL is positively

related to the level of customers’ exposure about the bank’s service packages.

5.3 Hypothesis Testing of PBL

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .012a .000 -.017 .363

a. Predictors: (Constant), Choose PBL rather than other

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression .001 1 .001 .009 .925a

Residual 7.649 58 .132

Total 7.650 59

a. Predictors: (Constant), Choose PBL rather than other

b. Dependent Variable: Over all service

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) 1.139 .130 8.772 .000

Choose PBL rather than

other

.005 .050 .012 .095 .925

a. Dependent Variable: Over all service

P value for coefficient of A is .925. For any value of , if P-value , we can reject the null

hypothesis. So in this case we can reject the null hypotheses. The level of customers’

satisfaction about the services provided by PBL is positively related to the level of

customers’ exposure about the bank’s service packages.

Hypothesis 2:

Ho -Customer expectation of service don’t matches bank’s service promise.

H1- Customer expectation of service matches bank’s service promise.

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .042a .002 -.015 .363

a. Predictors: (Constant), Service provided by PBL matches your

expectation

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression .014 1 .014 .104 .749a

Residual 7.636 58 .132

Total 7.650 59

a. Predictors: (Constant), Service provided by PBL matches your expectation

b. Dependent Variable: Over all service

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) 1.091 .189 5.757 .000

Service provided by PBL

matches your expection

.055 .169 .042 .322 .749

a. Dependent Variable: Over all service

P value for coefficient of A is 0.749. For any value of , if P-value , we can reject the null

hypothesis. So in this case we can reject the null hypotheses. PBL Customers’ expectation of

service matches bank’s service promise.

Hypothesis-3

Ho-PBL’s Customer involvement with the bank is not high.

H1- PBL’s Customer involvement with the bank is high.

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .112a .013 -.004 .361

a. Predictors: (Constant), Customer involvement with PBL

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression .096 1 .096 .740 .393a

Residual 7.554 58 .130

Total 7.650 59

a. Predictors: (Constant), Customer involvement with PBL

b. Dependent Variable: Over all service

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) 1.321 .205 6.459 .000

Customer involvement with

PBL

-.161 .187 -.112 -.860 .393

a. Dependent Variable: Over all service

P value for coefficient of A is 0.393. For any value of , if P-value , we can reject the null

hypothesis. So in this case we can reject the null hypotheses. So we can easily say that PBL’s

Customer involvement with the bank is not high.

Hypothesis-4

Ho-It is expected that customer is not satisfied with the communication of the bank.

H1- It is expected that customer is satisfied with the communication of the bank.

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .108a .012 -.005 .361

a. Predictors: (Constant), Customer communication of the bank

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression .089 1 .089 .680 .413a

Residual 7.561 58 .130

Total 7.650 59

a. Predictors: (Constant), Customer communication of the bank

b. Dependent Variable: Over all service

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) 1.264 .145 8.693 .000

Customer communication of

the bank

-.093 .113 -.108 -.825 .413

a. Dependent Variable: Over all service

P value for coefficient of A is 0.413. For any value of , if P-value , we can reject the null

hypothesis. So in this case we can reject the null hypotheses. So we can easily say that it is

expected that customer is satisfied with the communication of the bank.

Hypothesis-5

Ho- It is expected that customer is not satisfied with the security of the bank.

H1- It is expected that customer is satisfied with the security of the bank.

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .031a .001 -.016 .363

a. Predictors: (Constant), Customer security of the bank

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression .007 1 .007 .055 .816a

Residual 7.643 58 .132

Total 7.650 59

a. Predictors: (Constant), Customer security of the bank

b. Dependent Variable: Over all service

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) 1.126 .114 9.849 .000

Customer security of the

bank

.021 .088 .031 .234 .816

a. Dependent Variable: Over all service

P value for coefficient of A is 0.816. For any value of , if P-value , we can reject the null

hypothesis. So in this case we can reject the null hypotheses. So we can easily say that it is

expected that customer is satisfied with the security of the bank.

Hypothesis-6

Ho- It is expected that customer are not satisfied with the online banking(ATM cards,

Debit cards, Master Cards, Credit etc.)

H1- It is expected that customer are satisfied with the online banking(ATM cards, Debit

cards, Master Cards, Credit etc.)

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .116a .014 -.003 .361

a. Predictors: (Constant), Customer satisfaction with the online facility

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression .104 1 .104 .796 .376a

Residual 7.546 58 .130

Total 7.650 59

a. Predictors: (Constant), Customer satisfaction with the online facility

b. Dependent Variable: Over all service

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) 1.226 .097 12.634 .000

Custom,er satisfaction with

the online facility

-.041 .046 -.116 -.892 .376

a. Dependent Variable: Over all service

P value for coefficient of A is 0.376. For any value of , if P-value , we can reject the null

hypothesis. So in this case we can reject the null hypotheses. So we can easily say that It is

expected that customer are satisfied with the online banking(ATM cards, Debit cards,

Master Cards, Credit etc.)

Hypotheis-7

Ho- Customer satisfaction is not related to customer loyalty.

H1- Customer satisfaction is related to customer loyalty.

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .134a .018 .001 .360

a. Predictors: (Constant), Customer satisfaction related to customer

loyalty

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression .138 1 .138 1.064 .307a

Residual 7.512 58 .130

Total 7.650 59

a. Predictors: (Constant), Customer satisfaction related to customer loyalty

b. Dependent Variable: Over all service

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) 1.257 .114 11.046 .000

Customer satisfaction related

to customer loyalty

-.092 .089 -.134 -1.031 .307

a. Dependent Variable: Over all service

P value for coefficient of A is 0.307. For any value of , if P-value , we can reject the null

hypothesis. So in this case we can reject the null hypotheses. So we can easily say that

Customer satisfaction is related to customer loyalty.

Hypothesis-8

Ho-Customer loyalty is not related to profitability.

H1- Customer loyalty is related to profitability.

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .027a .001 -.016 .363

a. Predictors: (Constant), Customer loyality is related to profitability

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression .006 1 .006 .044 .835a

Residual 7.644 58 .132

Total 7.650 59

a. Predictors: (Constant), Customer loyality is related to profitability

b. Dependent Variable: Over all service

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) 1.168 .099 11.788 .000

Customer loyality is related to

profitability

-.014 .069 -.027 -.209 .835

a. Dependent Variable: Over all service

P value for coefficient of A is 0.835. For any value of , if P-value , we can reject the null

hypothesis. So in this case we can reject the null hypotheses. So we can easily say that

Customer loyalty is related to profitability.

Crosstab Analysis

5.4 Other important Analysis

Sex of the respondent * Over all service Cross tabulation

Count

Over all service

Totalvery satisfied satisfied

Sex of the respondent male 34 5 39

female 17 4 21

Total 51 9 60

From the sample it is seen that more percentage of male customers are satisfied with PBL than

that of female customers.

Over all service * PBL maintain good customer relationship Cross tabulation

Count

PBL maintain good customer relationship

Totalgood average poor

Over all service very satisfied 39 8 4 51

satisfied 6 2 1 9

Total 45 10 5 60

In the above sample we can see that out of 60 samples 45 respondent’s outcome is good and 10

respondent’s judgment is average and 5 respondent’s decision is poor. So, it is clear to state that

PBL maintain good customer relationship to the customers.

It will be naïve of me to give suggestions to a reputed corporation like PBL which is already the

top financial institution in Bangladesh. But based on the survey result and my 3 months

experience, I feel PBL would even perform better if it does the following:

Use Key Performance Index (KPI) or in short how many customers are served

effectively in a stipulated time.

Monitor employee activity regularly and take special care during rush hour. Motivate

employees to serve customers at a time effective way and also give promotion in

according to their performance.

Must increase the number of branch in rural and urban area to give better services.

Bank must develop the T-24 software for providing the better service in future time.

Recommendation

Though it might resemble that PBL is providing right solution in most cases, it is also

a warning that the percentage of right solution is not up to the fullest. PBL can take

service evaluation to check whether their service were unto satisfactory level or not.

Fair fees structure is a major issue of customer satisfaction. Fees structures are

thereby updated considering market trends and other financial and economic factors.

Customers are happy when they get fair fees structures. To them, the word fair

includes local and global reputation of the bank, brand image, value chain etc. So

these things should be considered while rescheduling the fees.

Banking environment has been found good for PBL, as expressed in the graph. Still

there are some percentages of customers who don’t like the environment. So PBL

should sit with their customers to solve the related banking environment problems.

Banking has become so user friendly that customer usually like to use ATM cards to

withdraw cash than standing into the queue in the bank. From the customer responses

it is visible that customers are not at all happy with the current number of ATM

booths available for use. As it is an important factor of satisfaction, PBL should look

into it.

From the graph it is visible that the customers’ opinion regarding safety in transaction

is quite satisfactory. Still there are some percentages of customers who have negative

comments regarding safety. So, PBL should look into it as safety has become a bigger

issue nowadays. If any safety loopholes are found, PBL should take proper action so

no mishap can happen.

The positive linkage that has been found between independent and dependent variables has

proved that there are some specific factors that makes customer satisfied or dissatisfied. As

customers are driving force of the banking industry, banks do a lot of marketing regarding the

products and services they offer and also they provide their customers with regularly updated

offerings. PBL is doing business for more than 16 years in Bangladesh, having a banking

structure based on the localized culture, tradition by blending its brand value and norms.

Basically to find customer satisfaction is a very difficult and time consuming matter. But in the

survey I found that customers are satisfied in most cases. However, in some cases they are

dissatisfied. Though the report intends and to find the factors of customer satisfaction which it

already did, further recommendations have been given so that the customer satisfaction increases

rather than decreasing day by day. At last I suggest that to survive in the competitive banking

industry in Bangladesh PBL must offer newer products and services to satisfy their newer and

valued customer which is superior to other bank.

Conclusion

REFERENCES

APPENDIX