34

II. INTRODUCTION

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a. Rationale of the Study

I had my own rationale behind selecting this topic. First of all from the management authority of

the bank, I was placed in the general banking and loans section to work and gather experience

during my internship period. Secondly, my supervisor from the bank also assured me that he can

provide me with relevant information for this topic which will help me in completing the report.

Most importantly my feeling is that, being a Marketing major student I want to know about the

General Banking and the Credit Management system of a bank which will give me a diversified

knowledge. The total functionally of this section should be understood upon completion of this

report. So that if I have to work in any Bank in future, my knowledge of this sector can help me

in my job. Also, it can give a lot to the Faculty of Business Administration. They can know and

share valuable learning through the aid of this report. Besides, PBL will be benefitted by the

findings and recommendations to plan future strategic action. So, on the whole this topic can

certainly help all of us in various ways.

b. Background

Prime Bank started its Journey in the Year 1995 with the firm commitment of providing superior

customer service with a difference. Its vision remained to be the best private Commercial bank in

Bangladesh in terms of efficiency, Capital adequacy, asset quality, sound management and

profitability. Having recorded progress in all areas PBL has now established itself as the leading

and strongest bank among the private Commercial banks in Bangladesh. PBL was formally

launched with one branch at Motijheel Commercial Area, Dhaka. It started its Islamic Banking

operation in December of the same year. It was listed with both Chittagong Stock Exchange and

Dhaka Stock Exchange in 1999 and 2000 respectively through initial public offering. It was

registered as Merchant Banker with the Securities and Exchange Commission, Bangladesh in

2000 for starting its investment Banking and Advisory services. In 2003 PBL become primary

dealer for buying and selling securities under the license issued by Bangladesh Bank.

The Bank has also expanded its services cross border with a view to providing banking service

globally. It has opened its first fully owned subsidiary- Prime Exchange Co. Pte Ltd. In

34

Singapore, it started its operation from 8th July 2006 to offer remittance service to Bangladeshi

nationals living in Singapore. This is the first Bank of Bangladesh established in Singapore with

the approval of Bangladesh Bank and the Monetary Authority of Singapore. Opening of a fully

owned subsidiary in Singapore has added a new dimension to the Bank’s remittance operation

widening its global reach for remittance activities.

With the aim to offer innovative banking service to the Non-resident Customers, PBL opened its

first Offshore Banking Unit in 2007 at DEPZ, Saver, a new dimension in its customer friendly

business activities. The bank has already received license from Bangladesh bank for opening of

three more OBUs at CEPZ, Chittagong and Adamjee EPZ, Narayangonj and Comilla EPZ,

which will be opened very soon.

At present, the Bank has 86 branches spread over the Country. It renders all types of commercial

banking services to the Customer of all strata in the Society within the stipulations laid down in

the Banking Companies ACT 1991 and rules regulations framed by Bangladesh bank from time

to time. Diversifications of Product and Services and innovation of Products Suited to the needs

of the customers in keeping with relevant rules and laws have made it different from other local

commercial banks of the Country.

Vision and Mission

Vision: To be the best Private Commercial Bank 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 and continuous improvement in our

business policies, procedure and efficiency through integration of technology at all level.

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Core Values

For Customers- To become most caring Bank-by the most courteous and efficient

service in every area of our business.

For Employees- By promoting well-being of the members of the staff.

For Shareholders- By ensuring fair return on their investment through generating stable

profit.

For Community- By assuming our role as socially responsible corporate entity in a

tangible manner through close adherence to national policies and objectives.

Objectives of the Prime Bank Limited

The objectives and goals of PBL are very specific and in accordance with its vision. The

objectives are as follows:

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

financial businesses including underwriting, managing and distributing the issue of

stocks, debentures, and other securities;

To finance international trade both in Import and Export;

To carry on foreign exchange business, including buying and selling of foreign currency,

the issuance of traveler’s cheque and international credit card etc.

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

Credit;

To finance the industry, trade and commerce in conventional way and also by offering

customer friendly credit service; and

To participate in the industrial development of the country through encouraging the new

and educated young entrepreneurs to undertake productive ventures.

34

Prime Bank’s Organizational Structure

Sl. No. Designation

1. Managing Director

2. Deputy Managing Director

3. Senior Executive Vice President

4. Executive Vice President

5. Senior Vice President

6. Vice President

7. Senior Assistant Vice President

8. Assistant Vice President

9. First Assistant Vice President

10. Senior Executive Officer

11. Executive Officer

12. Principal Officer

13. Senior OfficerManagement Trainee

14. Officer

15. Junior Officer

16. Assistant OfficerTrainee Assistant

Fig 1: Organizational Structure

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Managerial Hierarchy of Prime Bank Ltd

Chairman

Board of Directors

Executive Committee

Managing Director

Additional Managing Director

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

First Assistant Vice President

Senior Executive Officer

Executive Officer

Principal Officer

Management Trainee Officer

Senior officer

Junior Officer

Top Management

Executive Level Management

Mid Level

Management

Junior Level

Management

Fig 2: Managerial Hierarchy

34

Role of Prime Bank in Bangladesh Economy

Present world is changing rapidly to face the challenge of competitive free market economy.

Bangladesh is no exception of this trend. Banking sector in Bangladesh is facing challenges from

different angles though its prospect is bright in the future. Bangladesh economy is expected to

grow during the next fiscal year due to good harvest, recovery of agricultural output, stable

manufacturing growth supported by strong export demand of knit garments, robust service sector

growth and steady flows of remittances.

Modern Banking system plays a vital role for a nation’s economic development. Over the last

few years the Banking world has been undergoing a lot of change due to deregulation,

technological innovations, globalization etc. These changes also made revolutionary changes of a

country’s economy.

Import Business of Prime Bank has spread its invisible wings throughout every sector of the

economic development of our country. Some of the major development areas are as follows-

Through facilitating the import of various accessories, raw materials, fabrics, and yarn,

Prime Bank is playing a key role in the backward integration of our garments industry,

which is holding the base of our economic developments.

Import of different garment machinery, textile machinery as well as printing, medical and

pharmaceuticals equipments is working as a fuel to ensure our economic mobility.

Import of electronics like TV, Freeze, mobile and other equipments has enormously

improved the meaning of our life and our living standards.

Import of various food and food grains like Oil, Rice, Wheat, Sugar, Master Seeds, and

Soybean Seeds is one of the key factors to satisfy the need of our high level of population

growth.

The bank is also spreading its invisible hand of development toward the improvement of

our agricultural industry through the import of fertilizer and insecticides.

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c. Objectives

The objectives of doing this study are the following:

To have an idea of the services provided by general banking section.

To know the credit recovery procedure of the bank.

To identify the shortcomings of Prime Bank Limited.

To apply theoretical knowledge in the practical field.

To study existing banker-customer relationship of the bank.

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III. ACTIVITIES UNDERTAKEN

34

Activities Undertaken:

a. Work Related

I took part in the following activities of Prime Bank Ltd during my Internship period-

Fig 3: Activities Undertaken (Work related)

General Banking

Activities Undertaken

General Banking

A/C Opening Form Processing

Cheque Requisition & Issuing

Credit Section

Debit/Master Card Requisition

Processing CCS Application

Writing Debit Voucher

Inputting Sanction Details

Processing Remittance

Loan Recovery

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A/C Opening Form Processing: I used to maintain and process the Savings Bank Account

forms mainly where the following papers/documents were required-

1. Two copies of passport size photograph of the account holder(s) who will operate

the A/C duly attested by the introducer.

2. A/C to be introduced by current/savings account holder.

3. Photocopy of valid passport/ driving license/ National ID/ nationality certificate

issued by ward commissioner or chairman etc.

4. Paper related to source of income.

5. One copy passport size photograph of the nominee.

6. TIN Certificate (if applicable)

Cheque Requisition & Issuing: I used to collect the cheque requisition forms from the

customers and issue them the cheque books after registering the cheque number in the MICR

cheque register book along with their valid signature.

Debit/Master Card Requisition: The application for Issuing/ Replacement of a new Master/

ATM Debit Card requires A/C holder's one copy passport size photograph, valid signature

and his/her contact information which I used to collect from them and process the application

form.

Writing Debit Voucher: A Debit Voucher contains Issuing date, A/C number, Particulars

with amount which I used to fill up and get it signed by the respective authority.

Processing Remittance: Prime Bank Ltd entertains the customers coming for collecting

foreign remittance through various exchanges like- Western Union, IME, Xpress Money,

Transfast, PBL Exchange etc which requires an intensive verification of the PIN, amount of

remittance and customer information. I have maintained this process in proper way and

served the customers during my internship.

Credit Section

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Processing CCS Application: PBL maintains a 360 degree profile of the customer applying

for loan from the Bank which requires following papers and information-

1. Passport size photograph of the applicant and two guarantors.

2. Demographic data of applicant and guarantors along with mailing address and

contact number.

3. Application form

4. The applicant must be a savings A/C holder the respective branch of PBL.

5. Documents related to source of income etc.

I used to collect all those information from the customer and transfer the file to the authority.

Inputting Sanction Details: If the head office grants the application they send a sanction

letter to the respective branch against it which mentions the exact amount sanctioned,

duration, installment amount and other repayment requirements. During my internship period

I helped the Credit officer to fill up these information in the customer profiles.

Loan Recovery: I went out with the Credit Officer as a part of loan recovery process to meet

a client directly who was not giving the repayment installment properly and stayed out of

contact with the bank for long time.

b. Organization wide

Besides my work related activities, PBL also performs the following activities in their organization- General Banking

General Banking department performs the majority functions of a bank. It is the core department

of any bank. The activities of GB of PBL are mainly divided into the following categories:

A/C Opening Section

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A/C opening section of PBL Barlekha Branch mainly and frequently opens and offers the

following types of accounts for the customers-

Savings Account: Prime Bank brings customer the ultimate trust, security and convenience

in Savings Account. Any Bangladeshi national with an age of 18 years or above can open

this. It can also be opened jointly.

Current Account: In Current Account money can be freely deposited and withdrawn. At the

time of opening, this account is also accompanied by a Special Notice Deposit (SND)

account. This A/C is generally opened on behalf of any organization.

My First Account: Prime Bank Limited, in its endeavor to establish itself as a forerunner in

Education Support Service has launched a new landmark product. This new product lets

students exercise responsibility in habits. This encourages the growth of confidence

regarding their future ambitions; “My First Account” compels them to take inspired steps for

a lifetime of success. This account is especially designed for the student under 18 years of

age. This account can be maintained by parents/legal guardians on behalf of the students.

Account opening section also issue the cheque book and following procedures are maintained for

issuing of a check book:

At first the customer will fill up the check requisition form.

The leaves of the check book under issue shall be counted to ensure that all the leaves and the

bank requisition slip are intact and the name and account number shall be written on the

cover page of check book. The account number of the customers shall be entered on all the

leaves of the check book and its requisition slip.

The name and account number of the customers shall be entered in the check book register

against the particular check book series.

Then the register check book and the requisition slip are signed by the officer in charge of the

deposit department.

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Then the check book is handed over to the customer after taking acknowledgement on the

requisition slip and the register book.

A cover file containing the requisition slip shall be effectively preserved as vouchers. If the

ledger keeper notices any defect, he will make a remark to that effect on the requisition slip and

forward it to the cancellation officer to decide whether a new check book should be issued or not.

Internet Banking Section

Internet Banking of PBL offers a host of services and facilities that gives customer real-time

access to their account. Through Internet banking, a customer can-

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

View & download Bank Account Statement since opening of the Account.

Transfer funds to any Prime Bank Account in real time.

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

Pay Prime Bank Credit Card Bill.

Pay Other Bank's Credit Card Bill.

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.

Deposit Scheme Section

This particular section of PBL offers different deposit schemes to the clients. They are-

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Sl. Name of Scheme

No.

of

Year

Instalment

Interest

Rate %

Terminal Benefit  

01.Double Benefit Deposit

Scheme5.42

25,000 Multiple & Maximum

Tk. 25.00 lac12.90 Double of Initial Deposit  

02.Lakhopoti Deposit

Scheme

3 2,400 9.50 Tk. 1.00 Lac  

5 1,285 10.00 Tk. 1.00 Lac  

10 500 10.00 Tk. 1.00 Lac  

15 250 10.00 Tk. 1.00 Lac  

03.Prime Millionaire

Scheme

5 12,465

11

Tk. 10.00 Lac or Tk. 21,748   will be paid

in case of   pension  

7 7,890Tk. 10.00 Lac or Tk. 17,137   will be paid

in case of   pension  

10 4,570Tk. 10.00 Lac or Tk. 13,786   will be paid

in case of   pension  

04. Contributory Savings

Scheme

5 500 11.00 Tk. 40,000  

1,000 Tk. 80,000  

2,000 Tk. 1,60,000  

3,000 Tk. 2,40,000  

4,000 Tk. 3,20,000  

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5,000 Tk. 4,01,000  

6,000 Tk. 4,81,000  

7,000 Tk. 5,61,000  

8,000 Tk. 6,41,000  

9,000 Tk. 7,22,000  

10,000 Tk. 8,02,000  

11,000 Tk. 8,82,000  

12,000 Tk. 9,62,000  

Fig 4 : Deposit Schemes of PBL

Foreign Remittance Section

Prime Bank has set the highest priority to mobilize inward foreign remittance of Non-Resident

Bangladeshi Nationals (NRB) living and working in different parts of the world. Their

remittance service is Easy, Fast and Secured. It has existing network of 110 locations throughout

the country [95 branches and 15 SME branches]. This section ensures a real time online

connectivity with all the Branches of Prime Bank through Core Banking Software allowing

instant account-to-account credit, over the counter cash payment of Instant cash remittances &

credit foreign remittance to customer accounts.

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Cash Department

The cash section of PBL deals with all types of negotiable instruments, cash and other

instruments and treated as a sensitive section of the bank.. This section performs the following

functions:

Cash Receiving:

The first work of cash receiving counter is examining deposit slips. Depositor uses the prescribed

deposit slip supplied by the bank for deposit cash, check, draft, pay order etc. In all types of

deposits the teller must check the following things.

1. The slip has been properly filled up.

2. The title of the account and in its number.

3. The amounts in figure and in words are same.

4. Instrument signed by the depositor.

5. Date of the instrument.

After checking all these things the teller will accept cash, check, draft, pay order etc. against

deposit sleep. The teller will place the cash in drawer according to denominations and record in

the cash received register book against the account number. At the end of this procedure, the

cash officer returns customer’s copy of the deposit slip.

Cash Payment Procedure

In order to safe guard the position the paying banker has to observe the following precaution

before honoring a cheque:

1. A check must be looked whether it is an opened or crossed cheque.

2. The paying officer should see whether the check is drawn on his/her branch.

3. He must see if the check is post dated or pre dated.

4. The officer must carefully see the apparent tenor of the cheque.

5. The officer must compare the signature of the cheque with the signature on the specimen signature card.

6. The officer must verify the regularity of the endorsement.

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Credit Section

The Credit section of PBL mainly deals with sanctioning different types of loan against the clients' application and credit management.

Types of Loan offered by PBL

The Prime Bank is offering the following loan and advance product to the client for financing

different purpose that fulfill the requirements of the bank and have good return to the investment

as well as satisfy the client. Depending on the various nature of financing, all the credit facilities

have been brought under two major groups;

1. Non-funded credit

2. Funded credit

Under Non-funded credit, there are basically two major products namely-

1. Letter of Credit

2. Letter of Guarantee

Under Funded credit, there are the following products-

a) Loan (General)

b) Housing Loan (Commercial)

c) Home Loan (Swapna Neer)

d) Consumer Credit Scheme (CCS)

e) SOD (Financial Obligation e.g. FDR)

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Steps in Loan Processing

Fig 5: Steps in Loan Processing

Request for Credit from the Client

Scrutinizing & Collection of Information

Approval of Credit by Branch/Credit Committee/ Executive Committee/

Board of Directors

Appraisal of Credit & Presentation of Credit Proposal for Approval

Sanction of Credit Mentioning Terms and Condition

Disbursement of Credit

Credit Administration

Credit Monitoring and Classification of Accounts

Taking Precaution/ Legal Action against Delinquent Clients

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Credit Request

In general the client having an account approaches the bank official for financial help in

the form of credit. The client may directly go to the credit department or talk with the

credit officer of the branch. While talking with the client the officer try to find out the

following cues:

Reputation in business circles, friends, and competitors and employees.

Educational qualifications, Business Experiences.

Physical Fitness and Eagerness.

Purpose of the Loan, Popularity and marketability of the product.

Availability of the raw materials, transport and communication.

Expected terms of repayment.

Declaration of the assets and liabilities.

Whether reason for credit facility seeking is justifiable.

Here, this discussion is like preliminary screening of the client. To do so the credit

officers of PBL are cautious about the facility the client is seeking and the available

fund in the bank.

Credit Application form

The client is given a credit application form if and only if the credit officer is satisfied

discussing with the client when he approached. The PBL credit application request form is said

to be a standard one. The client has to provide the following information in the credit

application form-

Mode of financing and amount of credit wanted.

Primary information of the Business.

Directors name along with their shareholding percentage of net worth and filled up net

worth statement.

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Scrutinizing and Collection of Information

In case of clients who have previous record of taking credit facilities, their in-file records are

examined to see whether the client has a good record of payments in time.

Information gathered through direct inquiry.

Information gathered through in-file ledger fact.

PBL request the client to provide the following documents when the complete credit application

form is submitted. These documents are used to collect information for processing the loan

proposal. These also help the credit analyst to appraise the client and to prepare proposal. The

information or documents that must be given by the clients are as follows.

1. Property Document

2. Certified copy or photo copy of the Memorandum of Articles of Association/certificate of incorporation

3. Photocopy of the directors duly attested.

4. Personal net worth of the directors

5. Last three years audited balance sheet

6. Group brochure/Machinery list/stock report/list of buyers

7. Short description of the products of the company

8. Project Profile (if new project)

9. Name address of the mother company and the sister concern

10. Photograph of the land from the three different sides.

11. Photograph of the owner of the land

12. Marketing Distribution System/Export Target

13. Short Profile of the Directors mentioning their business experiences

14. Brief Description of the management of the company mentioning their educational and professional experiences.

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Credit Appraising & Presentation of Credit Proposal for Approval

Credibility Appraisal: The credit officer has to check the integrity and the honesty of the client

that is the management and the other allied company as well. The integrity is checked through

different ways. They are as follows:

Personal interview

Report form PBL

Report from other Bank

Report from society

Financial strength analysis: Analyzing the financial position is one of the main factors to be

identified before financing any business. In the application form the client has to furnish the total

investment made by him in the said project he is seeking loan facility. The credit officer must

find out-

The Net-worth of the client.

Investment in business

Cash flow

Allied deposit in PBL.

Tangible net-worth of the business for the lasts three years and projected two years.

Total Asset-Total Debt Overall group strength (if applicable)

Liability position analysis: Facility from PBL & other banks taken by the client must be

provided while applying for credit facility. The credit officer looks for:

Existing facility enjoying by the Client Company from the PBL and other banks.

Existing facilities for the sister concerns if applicable.

Debt to Asset ratio.

Here the credit officers need to look for the Nature, limit, outstanding, overdue, security

value of the credit facilities

Whether the amount outstanding are classified or not

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Approval of Credit by Higher Authority

Branch Credit Committee and Head Office Credit committee take decision on approval of credit

through and after -

Reviewing, analyzing and approving extension of credit in accordance with authority

established and delegated by the Board of Directors.

Recommending credit proposal to the Executive Committee/Board of Directors which are

beyond the delegated authority.

Ensuring, that all elements of Credit application have been obtained and are in order.

Confirming that the transaction is consistent with existing loan policy and Bangladesh

Bank guidelines & if not the Committee may prepare a recommendation from an

exception to or change in policy for consideration by the Executive Committee/Board of

Directors.

Sanction of Credit

Most important step of providing credit facility is the sanctioning of credit Because sanctioning

authority will be held responsible for any discrepancy. In this step all the documentation is

completed and the customer is sent an advising letter for the credit facility along with all the

terms and conditions.

Disbursement of Credit

Disbursement of credits presupposes observance of all norms and procedures, which are

conveyed through different Circulars of Head Office, issued from time to time. Generally the

amount of credit approved by the sanction letter is given to the SB A/C of the applicant in this

step and the applicant is informed to collect the money from bank.

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Credit Administration and File Maintenance

Credit File Maintenance: The credit file for each facility shall contain all information necessary

to facilitate ready monitoring of that facility. It should contain a through history of the customer

relationship to help credit officer': track any problems, assist a newly assigned credit officer in

understanding the customer and make the lending process transparent.

Facility Evidence Maintenance: All charge documents should be maintained in a place of

utmost security. All charge documents as prescribed by the bank & local laws, for the relevant

credit facility, Signed credit agreement, Signed guarantees or other evidence of credit security or

collateral agreement shall be kept in fire proof safe under the custody of Branch manager or his

designate alternative and another officer. A register of charge and security documents should be

maintained under the supervision of the Branch Manager.

Credit Monitoring and Reviewing

It is the responsibility of the Manager to monitor the overall profile and risk aspect of the credit

portfolio in accordance with the criteria set down in the Bank Credit Policy. Such monitoring

shall be evidenced from the comments of the Manager in monthly Call/Visit Report and be kept

in the Credit File with a copy to the Head Office.

This Review shall be formally performed at intervals prescribed by Head Office but it is the

responsibility of the Manger to ensure at all times that the credit portfolio meets the standard set

forth by the Bank.

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Credit Risk Management

Credit risk is one of the major risks faced by the Bank. This can be described as potential loss

arising from the failure of a counter party to perform according to contractual arrangement with

the bank. The failure may arise due to unwillingness of the counter Party or decline in economic

condition etc. Therefore PBL's risk management has been designed to address all these issues. In

perspective of Prime Bank Limited risk is defined as the possibility of Financial Losses. Now a

day's management plays a vital role to reduce uncertainty of assets and or else.

Credit Risk Assessment

The primary factor determining the quality of the Bank’s credit portfolio is the ability of each

borrower to honor, on timely basis, all credit commitments made to the bank. The authorized

credit officers prior to approval must accurately determine this. Therefore a thoroughly credit

risk assessment shall be conducted prior to the sanction of any credit facilities. While assessment

a credit proposal PBL emphasizes more on repayment potential of loans out of funds generated

from borrower’s business (cash flow) instead of realization potential of underlying securities.

c. Other Relevant Activities

During my internship in PBL, I used to call different clients who's A/C opening form or

Credit application form was incomplete and ask them to come up with the missing

documents.

I helped the Credit officer to insert money in the ATM booth vault.

I redesigned the Excel format to print an FDR. My designed format is given in the

appendix.

I helped the GB in-charge to keep the SS cards in the vault in an orderly manure.

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IV. CONSTRAINTS/CHALLENGES AND PROPOSED COURSE OF

ACTION

34

a. Identified/ Observed in the Organization

ATM service not adequate: PBL has only one ATM booth in the entire Barlekha Thana

and I've observed that almost in every working days there was complain coming from

customers that the ATM is not working properly. Sometimes the customers' A/C was

over charged or the ATM screen shows misleading balance information.

Less promotional activities: Financial organizations, nowadays are facing tremendous

competition where promotional activities play a vital role in survival, growth and

retrenchment but PBL Barlekha Branch pays very little attention to external promotional

activities. There is almost no existence of outdoor advertisement of the bank.

Loan requirement and procedure: Previously, customers who has CD A/C in the bank

could apply for loan but now the customer will have to have a Savings A/C in order to

apply for loan. Because of this regulation the existing clients with CD A/C are bound to

open SB A/C again which is embarrassing to them. Secondly, the CCS Policy states that

the loan application processing time will not exceed more than 7 days but practically it

takes lot more than that in this branch.

Independent marketing research cell is not available: There is no independent

marketing research team existing in this branch but it is essential for an organization to

collect data by extensive marketing research to get customer insights.

Conventionalism: Although they are using a world class banking software, there are

some general activities (i.e.: Cheque Issue Register, Inward/ outward mail register etc)

performed manually and conventionally which could be more easily done by developing

new software. These activities are making the service slow.

Poor Infrastructure and maintenance: While working at the front desk I found that all

the computers were performing very slow and back dated which decreased the service

performance and increased the lead time. Besides, the power back up of this branch is not

34

adequate. They have no self start generator facility, every time the power fails they

manually start the generator which results a total disconnection of internal and external

server network and service become impossible to provide.

Customers' knowledge lacking: Around 70% customers of this branch are from

different rural areas having very limited banking knowledge. Helping them with writing

the cheqe or deposit slip for every transaction takes a lot of time from the employee's

regular working hour.

Security concern: A number of 5/6 most valuable customers supports the PBL Barlekha

Branch with remarkable amount of deposits. To hold these clients bank gives them

highest priority. And so those clients can easily walk into highly secured and sensitive

areas inside the bank without permission from bank authority. The bank authority do not

restrict them to do so. I think it is a security concern and a possible threat for them.

Lack of professionalism: The officers of PBL Barlekha branch welcome the clients/

guests with local language which shows a lack of professionalism in them. Because there

might be customers who are not used to it or coming from other districts who don't

understand this language properly.

Centralized authority causes bigger lead time: Sometimes the centralized authority in

PBL results a lengthy service delivery. For example- If a customer come to receive

foreign remittance through different exchanges, his/her withdrawal voucher will be

needed to pass by 2/3 different desks to be signed. It increase the lead time to provide the

service.

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b. Academic Preparation During the whole internship program I've faced many challenges related to my academic

preparation. The remarkable ones are stated below-

Irrelevant to Major: Being a marketing major student it was a big challenge for me to do

the banking activities as I had no theoretical knowledge related to it. It took lots of my time

to learn the basics first and then work. I could not even apply my marketing knowledge due

to lack of scope to do so.

Time Constraint: As it was Summer semester, I faced challenge with preparing the entire

report because it requires diversified data to be collected and typed but the time I was given

was too short.

Resource Constraint: In many cases the authority did not want to disclose internal

information to me which was a challenge for me while I was collecting data.

Communication Gap: All the employees were performing their scheduled job every day so

It was tough for me to interrupt them and ask question many time which created a

communication gap between me and them.

Location Constraint: As I was doing my internship in PBL Sylhet Branch, I used to face

great problem with physically meeting my University supervisor time to time because it took

almost 6-7 hours to reach Dhaka from Sylhet each time.

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Proposed Course of Action for Improvement

Here I'm proposing some actions for PBL Barlekha Branch against the constraints I've observed in this organization-

They should increase the number of ATM booth over the area and also upgrade their system so that it ensures proper transaction.

They should increase their promotional activities outdoor in order to educate the rural people about their service offerings.

They should be strictly maintaining the CCS policy and should not delay the loan disbursement procedure.

In order to know the local rural people and their demand very well, they should have their own marketing research team so that they can satisfy the customers with the desired service.

As PBL is a top class Bank, they should develop new software to digitalize their entire system which will increase customer service quality and decrease the lead time.

To ensure proper service delivery PBL should develop and maintain updated IT infrastructure.

They should increase the number of employees in the front desk so that customers can get help with writing cheque or deposit slip etc. and the actual service delivery doesn't go slow.

The front desk employees should give the greetings in proper Bengali language in order to maintain their professionalism and then they should talk according to clients' preference.

They should not allow any client to walk inside secured area like the cash room and be strict to the security policy.

A decentralized authority is an obvious need for the foreign remittance section of PBL Barlekha branch in order to increase the number and quality of service delivery.

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V. LESSONS LEARNED FROM THE INTERNSHIP PROGRAM

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a. Implications to Prime Bank During my whole internship program I have learned the following things from Prime

Bank Ltd. Barlekha Branch-

4.1.1 Loan Section Who can apply for a loan

How to apply for a loan

What are the information needed to fill up the loan application

How the application is assessed by higher authority

How to input sanction letter details in the applicants' directory

How credit disbursement happen

How risk management works

4.1.2 General Banking Section How to open an Account

What are the information/papers needed for a CD/SB account

How to fill up a Cheque requisition form

How to issue a CD/SB Cheque Book

How to check account balance in Temenous Globus T24 software

How to register inward mails

How to register despatch letters

4.1.3 Foreign Remittance Section

How to use different international software made for Western Union, Moneygram,

Xpress Money, CFRC, IME, Placid Express etc.

How to verify receivers details

What are the documents needed to collect from the receiver

How to write a debit voucher etc.

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b. Implications to AIUB’s Internship Program AIUB's Internship program helped me with many personal developments through

teaching me the following points-

Always try to create and look for opportunity.

Think positive and find out opportunity in negativity.

Help others to get their support.

Try to enjoy the work, because if it was easy every one could do that.

Inspiration and motivation is important.

Be professional.

Be punctual and have dedication.

Work in a team rather working alone.

Take risk and be responsible.

Find out the scope and apply theoretical knowledge in your work place.

Be obedient to your supervisor/superior.

Cope up with organizational culture.

Balance between your personal and professional life.

Develop your strategy to keep both your supervisor and the client happy.

Develop the power to read customers' mind to some extent.

Be proactive.

Show empathy to the customer.

Pay attention and give importance to all the customers equally.

c. Others

Through this internship program I have learned how to organize official meetings and

how to impress prospective clients by a sudden visit.

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VI. CONCLUDING STATEMENTS

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a. Recapitulation

This report is an obligatory part of completion of the Bachelor of Business Administration

program resulted out of an Internship program for a short time. It has been prepared on the basis

of two months work experience in Barlekha branch of Prime Bank Limited, with the instruction

and supervision of Tahsina Khan, Internship supervisor from AIUB.

Prime Bank started its Journey in the Year 1995 with the firm commitment of providing superior

customer service with a difference. Its vision remained to be the best private Commercial bank in

Bangladesh in terms of efficiency, Capital adequacy, asset quality, sound management and

profitability. Having recorded progress in all areas PBL has now established itself as the leading

and strongest among private Commercial banks in Bangladesh.

The internship program had started at 4th July, 2012 at Barlekha Branch of Prime Bank Limited.

This report actually describes the major activities done by the Bank in their Credit department

and General Banking department.

The credit department of PBL mainly deals with receiving CCS application from various clients,

scrutinizing information, Disbursement of sanctioned amount of loan and maintaining

beneficiary's profile for risk management etc. whereas the General Banking department mainly

performs the activities related to A/C opening, FDR, Foreign Remittance, Cash receive/

Payment, Cheque/ Master Card issuing, Internet Banking etc.

Although Prime Bank is a top ranking bank in the banking industry, this internship report shows

they have some lacking and constraints regarding their service delivery and performance. It also

propose some course of actions to PBL which can be taken in order to ensure their service

recovery and better service delivery.

At the end of the report it is mentioned that the entire Internship Program was helpful for the

intern to gain valuable learning and experiences which had implications both to Prime Bank Ltd.

Barlekha Branch and to AIUB's internship program itself.

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b. Recommendations for Future Strategic Actions

For the betterment of AIUB's internship program I'd like to recommend the respective authority

to look into and ensure the following things-

Internship Grooming Session: As Internship is something new for a student and a third

party is involved with it, there should be a proper internship grooming session arranged for

the interns to clarify how to manage an internship and what should be their DOs and DON’Ts

while working in the organization. This will help the intern to make the best use of internship

period as well as it would be helpful to increase AIUB's brand image to the third party. AIUB

tries to arrange this session every semester but sometimes they fail to do so.

Communication between Supervisors: In order to ensure ease of working for the intern, it

is essential that the supervisor from university and the supervisor from the organization

communicate between themselves about the intern's activity or performance over phone/

email or if possible by visit. It will be helpful to do an authenticated and accurate

performance evaluation. Besides, it will decrease the rate of contradictory issues created by

difference between the supervisors' point of view.

Developing Activity Log: There should be a practice of developing activity log by the intern

where he/she will make a list of his/her daily activities and get it signed by the organizational

supervisor and submit it to the university supervisor on weekly basis. It will be useful for the

university supervisor to evaluate the progress report as well as the internship report

periodically.

Internship Relating to Major: The Office of Placement and Alumni (OPA) of AIUB should

try to help the interns to manage internship in such an organization where he/she will be able

to relate theoretical knowledge from the major courses with the actual work. It will help the

intern to apply his knowledge in practical field and turn it into a skill which will help in

career development. Besides, it will help to come up with valuable output from the internship

program in the form of findings and recommendations which can be useful to take future

strategic actions for the organization.

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References

1. https://www.primebank.com.bd/

2. https://www.primebank.com.bd/index.php/home/retail_banking

3. Annual Report- 2011 retrieved from https://www.primebank.com.bd/index.php/home/financial_reports

4. Half Yearly Report- 2012 retrieved from https://www.primebank.com.bd/index.php/home/quarterly_half_yearly_reports

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Appendix

1. Logo of Prime Bank Ltd.

2. New FDR format

3. Profit record

Acronyms

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A/C : Account

CCS: Consumer Credit Scheme

MICR: Micro Ink Character Reader

PBL: Prime Bank Ltd.

CD: Current Deposit

FDR: Fixed Deposit Receipt

ATM: Automatic Teller Machine

SS: Specimen signature

SB: Savings Bank

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CURRICULUM VITAE