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INTRODUCTION:
As a fully operational Commercial Bank, National Bank Limited started its operation
with a vision to be the market leader through providing financial supports to corporate
and small entrepreneurs as well as individuals all over the Bangladesh.
National Bank began its operations with a mind to provide formal banking services to all
levels of people in the urban, semi-urban and rural spectrum, and through the nearly !
branches across the country, the Bank has seen that goal a long way through " providing
Bangladesh with a degree of service and professionalism that
the traditionally underserved class could ever dream of. #he Bank operates under a
$double bottom line% agenda where profit and social responsibility go hand in hand as it
strives towards a poverty-free, enlightened Bangladesh.
1.1 Origin of the Report&
As a mandatory part of the BBA program, all the students of 'epartment of Business
Administration, (niversity of 'haka, have to undergo a three-month long internship
program to gain some practical e)posure about corporate world. (pon the completion of
this program, the students have to submit an internship report, which reflects their
knowledge as well as activities during the program. *n relation to that * was assigned to
prepare a report on $A Case Study of National Ban !i"ited. #he topic of the report
was assigned by the faculty supervisor and accepted by the host organi+ation as par
necessity to fulfill the internship re,uirement.
*n this regard, * have worked as a report analysis in National Bank Ltd -NBL., /n the
basis of working e)perience in this period and * have tried my level best to relate the
theoretical knowledge with the practical work situation
/perating income
After e)penses but before provisions and ta)es and e)traordinary items.
4)traordinary C Non-recurring *tems
:aterial events and transactions that are unusual and infre,uent.
5rofit -gains. or loss on sale of fi)ed assets.
5rovision -for loan losses.
Changing market conditions where the bank operates may result in a
deterioration of loan and lease assets, which may result in actual and anticipated
losses -write-down or write-off of the asset@s value.. #he accumulated loss may
e)ceed the e)isting Loan 9eserve thus earnings may have to added to the Loan
9eserve account to either increase or replenish the amount to meet an acutal or
anticipated loss.
#a)ation
Current ta)ation -ta) payable on recogni+ed income for the fiscal year, which
was paid to federal, state and local, and foreign revenue authorities..
'eferred ta)ation
1ootnotes
Allowance for losses -Loan Loss Account. - is a reserve account that is set aside
by management to cover an estimate of losses -charge-offs. in the loan portfolio.
#he loan loss account has an opening balance at the beginning of the year, it
receives additional provisions based on actual losses and anticipated losses for the
coming year2 has actual charged-off loans subtracted from the account and then
has a closing balance for the year..
Classified Loans - loans that have been determined to be not collectable for the
full amount due to the deteriorating performance andCor condition of the borrower.
#he PclassificationP is based upon internal e)amination and rating system -based
on generally accepted industry practices. such as non-performing accrual, non-
accrual. #he /ffice of the Comptroller of the Currency -/CC. also rates loans are
classified as substandard, doubtful, and loss.
!
Asset Liability Management
*deally, banks want to match the maturity of assets -loans, investments. with the maturity
of liabilities -demand deposits, timed deposits, borrowed funds.. 9elated to the maturity
structure, the interest rate paid on liabilities to borrow the funding must be less than the
interest rate on earned on the assets -interest rate charged to the borrower.. #he failure to
carefully manage this situation can result in asset"liability mismatch, interest rate risk,
li,uidity risk.
CAMELS
#he CA:4L6 approach was developed by bank regulators in the (nited 6tates as a
means of measurement of the financial condition of a financial institution. -(niform
1inancial *nstitutions 9ating 6ystem established by the 1ederal 1inancial *nstitutions
4)amination Council.
#he acronym CA:4L6 stands for&
Capital Ade,uacy
Asset Duality
:anagement
4arnings -5rofitability.
Li,uidity 3 1unding
6ensitivity to :arket 9isk -losses arising from changes in market prices.
CA:4L6 analysis re,uires&
financial statements -the last three years and interim statements for the most
recent !-month period.
cash flow pro0ections
portfolio aging schedules
funding sources
information about the board of directors
operationsCstaffing
macroeconomic information
=
*n reviewing ratios the credit analyst needs to keep ! concepts in mind&
Level or whether the ratio for a given fiscal period is either e,ual to or e)ceeds
-which can be both positive or negative depending on the ratio. the established
parameters of what is considered a generally acceptable position for that specific ratio.
#rend or whether the fiscal to fiscal comparison period indicates that the level of the
ratio is improving or deteriorating. *n addition, individual ratios must not be reviewed in
isolation to other ratios and what is the present strategy of the management of the
financial institution.
Capital Adequacy
Capital Ade,uacy is a measurement of a bank to determine if solvency can be maintained
due to risks that have been incurred as a course of business. Capital allows a financial
institution to grow, establish and maintain both public and regulatory confidence, and
provide a cushion -reserves. to be able to absorb potential loan losses above and beyond
identified problems. A bank must be able to generate capital internally, through earnings
retention, as a test of capital strength. An increase in capital as a result of restatements
due to accounting standard changes is not an actual increase in capital.
#he Capital 7ro-th Rate, which is calculated by subtracting prior-period e,uity capital
from current-period e,uity capital, then dividing the difference by prior-period e,uity
capital, indicates that either earnings are e)tremely good, minimal dividends are being
e)tracted or additional capital funds have been received through the sale of new stock or
a capital infusion, or it can mean that earnings are low or that dividends are e)cessive.
#he capital growth rate generated from earnings must be sufficient to maintain pace with
the asset growth rate.
>
Chapter !
O"ER"IE# OF T$E OR%ANI&ATION
=. 7istorical Background
=.! #ypes of Business
=.= Rision
=.> :ission
=.? 5roducts and 6ervices Nation bank Ltd
=.A #arget customers
=.ENBL-At 5resent
?
Or'an()at(ona* O+er+(ew o, NBL
National Bank Limited is one of the leading private commercial bank having a spread
network of total AE service locations across Bangladesh and plans to open few more
branches to cover the important commercial areas in 'haka, Chittagong, 6ylhet and other
areas in !K=. National Bank Limited has been licensed by the Jovernment of
Bangladesh as a 6cheduled commercial bank in the private sector in pursuance of the
policy of liberali+ation of banking and financial services and facilities in Bangladesh. *n
view of the above, the Bank within a period of !? years of its operation achieved a
remarkable success and met up capital ade,uacy re,uirement of Bangladesh Bank.
National Bank Limited is a customer oriented financial institution. *t remains dedicated to
meet up with the ever growing e)pectations of the customer because at National Bank,
customer is always at the center.
).1. 8istori&al Ba&ground:
National Bank Limited -NBL. is a 5ublic Company Limited by shares in the Country,
with commendable operating performance. 'irected by the mission to provide prompt
and efficient services to clients, NBL provides a wide range of commercial banking
services also. Bank has achieved success among its peer group within a short span of time
with its professional and dedicated team of management having long e)perience,
commendable knowledge and e)pertise in convention with modern banking. <ith all its
resources, the management of the Bank firmly believes that the Bank would be able to
encounter problems that may arise both at micro and macro economic levels.
NBL incorporated in Bangladesh under company Act MM>. *t is also guided by #he Bank
Company Act MM -and its subse,uent amendments. and Bangladesh Bank /rdinance
ME!, so as to enable the company for doing banking business.
A
).#*ission 9 :ision of NB!:
*ission of NB!:
*n line with its vision, NBL has developed a mission statement, which reads as follows
and is self-e)planatory&
a. #o deliver service e)cellence to all the customers, both internal and e)ternal.
b. NBL will constantly challenge its systems, procedures and training to maintain a
cohesive and professional team in order to achieve service e)cellence.
c. #o create an enabling environment and embrace a team based culture where people
will e)cel.
d. #o ma)imi+e shareholderOs value.
).). :ision:
#he vision of NBL is to become $A Bank for 5erformance with 5otential% by
transforming the way they do business and developing a truly uni,ue financial institution
that delivers superior growth and financial performance and be the most recogni+able
brand in the financial service in Bangladesh.
).1. *ission:
*n line with its vision, NBL has developed a mission statement, which reads as follows
and is self-e)planatory&
a. #o deliver service e)cellence to all the customers, both internal and e)ternal.
b. NBL will constantly challenge its systems, procedures and training to maintain a
cohesive and professional team in order to achieve service e)cellence.
c. #o create an enabling environment and embrace a team based culture where people
will e)cel.
d. #o ma)imi+e shareholderOs value.
E
).;Types of Business
NBL was licensed as a scheduled bank. *t is engaged in pure commercial banking and
providing services to all types of customers ranging from small and medium enterprises
to large business organi+ations. *t is working for the economic welfare by transferring
funds from the surplus economic unit to those who are in deficit.
<un&tions of the NB!:
#he main task of the NBL is to accept deposited from various customers through
various accounts.
5rovides loans on easy terms and condition.
*t creates loan deposit.
#he bank invest it fund into profitable sector
*t transfers money by 'emand 'raft -''., 5ay /rder -5/. and #elegraphic
#ransfer etc.
Core :alues of NB!:
NBLOs core values consist of A elements. #hese values bind our people together with an
emphasis that our people are essential to everything being done in this bank.
Business (hilosophy of NB!:
#he philosophy of NBL is to develop the bank into an ideal and uni,ue banking
institution. #he perception is that NBL should be ,uite different from other privately
owned and managed commercial bank operating in Bangladesh. NBL is to grow as a
leader in the industry rather than a follower.
I
Mana'ement $(erarch- o, NBL
*anaging dire&tor
Senior e=e&uti'e 'i&e president
3=e&uti'e 'i&e president
Senior 'i&e president
:i&e president
Senior assistant 'i&e president
Assistant 'i&e president
Senior prin&iple offi&er
(rin&e offi&er
Senior offi&er
M
Deputy "anaging dire&tor
Offi&er
Assistant offi&er
>unior offi&er
).? (rodu&ts and Ser'i&es National Ban !td:
6pecial 'eposit 6cheme
:onthly 6avings 6cheme
Credit Card
9etail Banking
#rade 1inance
NBL 7ousing Loan
Lease finance
*nvestment Banking
9emittance 3 collection
Loan 6yndication
'eposit 6chemes
#ravelerOs Check
<estern (nion :oney #ransfer
6mall :edium 4nterprise Loan
Spe&ial Deposit S&he"e
1or most of the people on fi)ed income the opportunity to supplement their monthly
earning is a golden one. And NBL 6pecial 'eposit 6cheme gives a customer 0ust that.
!K
(nder this scheme, customers can deposit money for a term of = years. #he deposited
money is fully refundable at the e)piry of the term. At the same time, during the term
period they can en0oy a monthly profit corresponding to their deposited amount.
Deposited A"ount *onthly Benefit
#k. ?K,KKKC- #k. >?KC-
#k. ,KK,KKKC- #k. MKKC-
#k. !,KK,KKKC- #k. ,IKKC-
#k. =,KK,KKKC- #k. !,EKKC-
#k. ?,KK,KKKC- #k. >,?KKC-
#k. K,KK,KKKC- #k. M,KKKC-
#k. ?K,KK,KKKC- #k. >?,KKKC-
National Ban *onthly Sa'ings S&he"e:
National Bank Limited offers monthly savings scheme for its retail customers.
Strategies:
:onthly amount can be ?KK and multiple of it.
5remature encashment is available for urgent need.
Loan facility can be available up to IKL against N:6 account balance.
4asy installment basis deposit starting from #k.KK-?KKK.
*onthly Install"ent Return after ) years Return after ; years Return after @ years
?KK !K,A!E =E,IMA EK,I>M
,KKK >,!?? E?,EM ,>,AME
!,KKK I!,?K ,?,?I= !,I=,=M>
=,KKK ,!=,EA? !,!E,=E> >,!?,KM
>,KKK ,A?,K!K =,K=,AA ?,AA,EII
?,KKK !,KA,!E> =,EI,M?E E,KI,>I?
K,KKK >,!,?>M E,?E,M> >,A,MEK
!
Credit Card
6afe, *nstant and (niversal :oney.
Credit Card comes in both local and international forms, giving the client power to buy
all over the <orld. Now en0oy the conveniences and advantages of Credit Card as we step
into the new millennium.
Strategies:
?KL Cash withdrawal facility.
No hidden costs.
Credit Card <ees
Type of Card
Card <ree
7old Sil'er
Old Ne- Old Ne-
*ntOl QEK.KK Q?K.KK Q=?.KK Q!?.KK
Local #k.?KKC- #k.=KKC- #k.=?KC- #k.!KKC-
Consu"er Credit:
NBL offers consumer credit facility for retail customers.
<inan&ing ite"s:
4lectronics consumer products.
Computer or Computer accessories.
Strategies:
!!
1ast processing.
Competitive interest rate.
No application or processing fee.
4asy monthly installment.
Trade <inan&e
NBL provides a wide range of banking services to all types of commercial concerns such
as *mport 3 4)port 1inance and 6ervices, *nvestment Advice and other speciali+ed
services as re,uired with >? correspondents in E? countries of the world as well as with
=! overseas 4)change Companies.
*mport Business
National Bank Limited supports its customers by providing facilities throughout the
import process to ensure smooth running of their business. #he facilities are&
*mport Letter of Credit
*mport collection services 3 6hipping Juarantees
4)port Business
NBL offers e)tra cover to its customers for the entire e)port process to speed up receipt
of proceeds.
8o"e !oan
NBL offers home loan facility for purchasing flats or construction of house.
Strategies:
1inancing amount e)tends upto EKL or #k. E?,KK,KKK which is highest of total
construction cost.
Competitive interest rate.
No application or processing fee.
*nterest rate of =.E?L.
!=
3ligi$ility
Any Bangladeshi citi+en or N9B, who is capable of repayment, can apply for this loan.
!ease <inan&e
NBL provides lease financing for all types of manufacturing and service e,uipment.
Lease rental is determined based on ac,uisition cost and lease term. Lease term range
from ! to ? years. 9epayment through monthly lease rental is the most common,
however, ,uarterly, or half yearly payment can also be considered.
Strategies:
Competitive monthly rental.
#a) benefit.
1ast processing.
4asy handover after leasing period.
6estern Union *oney Transfer
:oney transfer from anywhere in the <ord to Bangladesh in minutes. Soining with the
worldOs largest money transfer service $<estern (nion%, NBL has introduced Bangladesh
to the faster track of money remittance. Now money transfer between Bangladesh and
any other part of the globe is safer and faster than ever before. National bank has made an
arrangement with <estern (nion 9emittance services, which has over !E years
e)perience for speedy remittance of money with more then >K countries.
!>
S6I<T 4So&iety for 6orld A6ide 9 <inan&ial Tele&o""uni&ation.
1or the benefit of their client, NBL gives opportunity by providing
#raveler Che,ue to those who want go abroad. 1or that they work as an agent of
American 4)press Bank and sell travel che,ue of A:4H to their clients. NBL has
become the member of 6<*1#. #he activates of 6<*1# have been started from last
'ecember !KKK.Soining with one of the worldOs largest money transfer services $:oney
Jram%, NBL has introduced Bangladesh to the faster track of money remittance. Now,
money transfer between Bangladesh and any other part of the globe is safer and faster
than ever before. #his simple transfer system, being on line, eliminates the comple)
process and makes it easy and convenient for both the sender and the receiver. #hrough
NBL " :oney Jram :oney #ransfer 6ervice, your money will reach its destination
within a few minutes.
Bran&hes
NBL has 'ivided the whole Bangladesh is to 6even divisions.
Chittagong 'ivision = branches
'haka 'ivision = branches
Thulna 'ivision KE Branches
9a0shai 'ivision Branches
6ylhet 'ivision = Branches
Barisal 'ivisin KE Branches
9angpur 'ivision KA Branches
!?
Total BC Bran&hes
Chapter: 4
(erfor"an&e of NB! at a glan&e
!A
(erfor"an&e of NB! at a glan&e
NBL. has a consistent dividend policy. *n line with that 6tock 'ividend of ?! percent
was declared for the year !KKI which strengthened paid-up capital base and it stood at
#k.!,I>A.?= million !KKM against authori+ed capital of E,>?K.KK million. #he statutory
reserve enhanced by =?.M? percent to #k.!, >I.=E million in !KKM after transferring !K
percent on pre-ta) profit while it was #k.,EEI.IE million in !KKI. At the end of !KKM
shareholdersO e,uity increased by >?.?? percent to #k.I, MA.EA million from #k.A,
!A.!E million of !KKI.
Capital Ade0ua&y ratio:
NBL always maintain a prudent balance between #ier- and #ier-! capital. #he Bank
has maintained overall capital ade,uacy at =.?A percent in !KKM of which K.IM percent
and !.AE percent as #ier- and #ier-! capital respectively against Bangladesh BankOs
re,uirement of K percent.
Deposit:
#he deposit base of the bank registered a growth of !E.AA percent in !KKM year over the
last year and stood at #k.EA, I=I.A> million. 4)pansion of branch network, competitive
interest rate and deposit products contributed to the growth.
In'est"ent:
#he daily average investment of the treasury in local currency was #k K,A!M.K million
in the from of Call Lending, #erm Lending, 9everse 9epo, 'ebentures and Jovt.
6ecurities. #he yield was .E percent higher than previous year. Like previous year,
inflow of foreign currency of the current year was higher than the previous year.
I"port 9 3=port Trade:
#he Bank opened a total number of !>,=I? LCs amounting (6' ,E.A million in
import trade in !KKM. #he main commodities were scrap vessels, rice, wheat, edible oil,
capital machinery, petroleum products, fabrics 3 accessories and other consumer items.
*n !KKM it handled I,EA e)ports !KKM it handled I,EA e)port documents valuing (6'
!E
??M.EI million with a growth of ?.> percent over the last year. 4)port finances were
made mainly to readymade garments, knitwear, fro+en food and fish, tanned leather,
handicraft, tea etc.
Re"ittan&e:
As a contributor of national economy, NBL is relentlessly working to ease the flow of
inward foreign remittance. #he bank introduced different products and technology
including 6<*1#, -#k.A!K.AMcrore. higher than that of !KKA achieving a growth rate of
!M.KE percent. *ntroduction of products like 7ome 'elivery 6cheme , 4lectronic 1und
#ransfer-41#. and different instant payment system and modern technologies like
6<*1# and online services have strengthen the position of the bank devices for more
speedy payments.
Net (rofit after Ta=:
National Bank Limited generated profit before provision of #k.=,=ME.EK million in !KKM
which was #k.=, !=.I! million in !KKI registering a growth of I.EE percent. Net 5rofit
after ta) grew by =A.>?L to #k.!,KEK.>E million in !KKM after making provision for loan
loss and income ta) for #k.!KK.KKmillion and #k.,?K.KK million respectively.
3arnings (er Share:
4arnings per share increased by =A.>?L to #k. E!.E> in !KKM from #k.?=.= of !KKI.
Offi&e Auto"ation
#echnology, Computer, *nternet those things a new generation of banking service to the
customer eight to ten years ago customers canOt thing about that they can withdrew or
deposit money from their account at least within one hour. But now it takes only at best
five minutes for withdraw their money. #his is the simple e)ample what technology
brings to banking sector. *n before bakers had to maintain huge ledger book for their daily
or any sorts of banking record. But now they can do it by one click and by strike of few
buttons. /nline banking is now getting more and more necessary part of banking sector.
National Bank Ltd has also reali+ed the current fact and they also try to serve online
banking service to their valued customer. #hough they do not lunch online banking
service e)tremely but within this year and ne)t year they are to introduce online banking
service at least primary for the branches of 'haka and some other key areas. Now they
have all branches under online banking services. 6o customer can get online banking
service only form all branches. NBL has its own software named 1L/9ABAT. #hey
!I
have web page -www.nblbd.com.. Customer can get detail information from the web
page. NBL also has credit card and A#: machine.
At glan&e of NB! 4ta$le 1.
5articular !KK !K !K!
Authori+ed capital E?KK.KK E>?K.KK !>?K.KK
5aid up capital >>!.= !I>A.?> IE!.E!
9eserve fund and
/ther reserve
M!A>.?> ?==M.!K >!I?.=I
4,uity fund =AEA.A> II?.E> A?I.K
'eposits MA!I=.I E=I>?.?I ??>I=.>=
Loans and advances IA!I!.E ?IAK.E >IKA.?
*nvestment !!=E.? !III.K I???.=
*mport business AEMII.II ?AM?>.EK A?>!=.M!
4)port business ==AI.>? !I??.?> !EIA!.A=
#otal income =E.AM E,!A.>K AAK?.
#otale)penses AA!=.KM ?KI.>= =EME.E
/perating profit >AM>.AK !,?!.ME !IKE.>K
operating profit >AM>.AK !?!.ME !IKE.>K
Net 5rofit after ta) ==>.AK K!.MA ??A.A=
9etained profit I.= ?.=> >A.>E
#otal
assets-4)cluding
contra.
!=>>.IA IIMK>.!= AAM=>.EI
1i)ed assets !AAK.!> !!>E.K MM.E>
Number of branches => K
AdvanceCdeposit
ratio-L.
IM.A EI.EA IA.A!
Cost of fund-L. I.A! K.K M.I>
9eturn on Assets >.K .EM =.!!
5rice 4arning 9atio I.=M .I !K.I?
4arning per share K.K =.== >.E
!M
Net Assets Ralue
5er 6hares
=.KK !I.EA =!.II
:arket 5rice 5er
6hare
M=.AAL MI.EIL M=.>IL
Number of
6hareholder
=>EIE =?A! IIII
Number of
4mployees
)1D; #@;C #?1@
Number of
1oreign
correspondents
11; 11; 1C;
Credit rating AA) A1 A1
6hort #erm ST/1 ST/1 ST/#
5rovision
9e,uired against
advances
#1B#.@C 1@@@.1C 11B@.@C
5rovision kept
againt advance
#1@1.#1 1D1B.?C 11B@.@C
/ff-site 6upervision -CA:4L6 9ating.
Bangladesh Bank has introduced a number of reporting forms and returns to be submitted
by the commercial banks regularly. /n the basis of those returns, Bangladesh Bank
prepares a composite rating on yearly basis for each bank. #his rating is known as
CA:4L6 rating. Based on the CA:4L6 rating, Bangladesh Bank gives 4arly <arning
6ignal -4<6. to a particular bank which is facing problems. CA:4L6 comprises of the
following five performance measures and these components are e)plained below
Credit Infor"ation Bureau 4CIB.
Before considering any loan proposal, a bank has to know the status of the loan applicant
in regard to hisCher liabilities outstanding with any other banksCbranches. Bangladesh
Bank has established C*B in August MM!. C*B report is considered as one of the basic
information for consideration of a loan. #he aim of the report is to avoid duplication of
credit facilities, avoid credit facilities to defaulters and 0ustify the status of the borrowers.
*t was made mandatory for all banks to collect data from C*B before sanctioning any loan
proposal above #aka ?.KK million. Apart from this, to maintain record of the borrowersO
=K
performance, NCBs have to submit report to Bangladesh Bank regularly on their progress
in collection of the larger overdue loans and on larger loans sanctioned since Sanuary ,
MMK.
!arge !oan Reporting Syste" 4!!RS.
Large Loan 9eporting 6ystem was introduced by the Bangladesh Bank to keep a control
and supervision on a regular basis in the process of sanctioning loans having bigger
amount. By Suly MM?, EIL of new large loans of NCBs have been reported by LL96.
Now, almost all large loans are reported by LL96. *n the meantime, Bangladesh bank has
formed a separate section in the 'epartment of Banking /peration and. 'evelopment
-'B/'.. #he commercial banks have to seek permission from the section prior to
sanction any large loan. #his section closely monitors and reviews the issues of larger
loans of the banks. #he responsibility of the section is to advise the concerned bank to
take immediate appropriate actions if any loan is assumed undue risky.
=
Chapter .
F(n/(n'0 1 Conc*20(on
=!
Findings:
<hile working at National bank L#'. Chalkba+ar Branch, * 7ave attained to a newer
kind of e)perience. After the collection and analysis of data, * have got some findings.
#hese findings are completely from my personal point of view. #hose are given below&
National bank Limited has already achieved a high growth rate accompanied by
an impressive profit growth rate in !KKI the number of deposit and investment are
also increasing rapidly.
National Bank Limited has already established a favorable reputation in the
banking industry of the country. *t is one of the leading private sector commercial
banks in Bangladesh. #he bank has already shown a tremendous growth in the
profits and deposits sector.
National Bank has an interactive corporate culture. #he working environment is
very friendly, interactive and informal. And there are no hidden barriers or
boundaries while communication between the superior and the subordinate. #his
corporate culture provides as a great motivation factor to the employees.
#hey face troubles with those clients who have not any knowledge in banking
transactions and banking rules.
1rom the clients view introducer is one of the problems to open an account. *t is
general problem to all commercial bank.
National Bank has own training institution for its employees, so they donOt re,uire
to train them from other training *nstitutions.
National Bank has insufficiencies of authori+ed 'ealer Branch in respect of the
total foreign e)change business is very small in respect of total market.
#he number of branches is not sufficient to cover the country most.
Banks peons are not a so effective thatOs why officer of bank transfer papers and
documents from one desk to other, it consumes time of officer and also clients.
#he bank failed to provide standard re,uirement polices in lower level like
assistant officer to 0unior officer. As a result the services of the bank face
problems in recent days.
==
NBL is not using data base network in information technology department. so
they have to transfer data from branch to head office by using pen drive, for
e)ample, clearing che,ue.
#he bank does not go for rural banking, but rural people are bankable.
5roper documentation rules sometimes create serious problems for the clients.
#he portfolio of bank is not that much diversified because it inverts ma0or portion
of its fund on government securities.
6ometimes investment operations of NBL are hampered due to increase,
dishonest, indirect, hypocritical nature of people.
#he Bank has disbursed a highest amount investment in urban areas and tiny
amount of investment in rural areas of Bangladesh.
#he bank mostly invests in the industrial and commercial sectors.
4mployees are not enough efficient and smart which the other private bank has.
#hey do not have sufficient power generate service on lots of electricity.
Recommendations
1or the probable solution of the identified problems ensure better progress to National
Bank in future, some necessary steps are recommended bellow on the basis of collected
data, observation ,e)pert staffs opinion and my Tnowledge and 0udgment.
National Bank should give more attention to advertisement for creating more
attraction among its customers, which is helpful to collect more deposits and
increase investments scope. #hatOs why bank should give emphasis on public
relation, e-marketing2 generate word of mouth and referrals.
#he entire department should be well informed regarding their goals and
ob0ectives. *t is essential to e)ecute company ob0ective into individual target.
Sob description should be clarified and proper training facilities should ensure to
improve the performance of bottom line management.
#he bank has the provision of internship but there is on organi+ed program for
internship. 6o they should organi+e programs for internship.
*t was observed that the officers of National Bank have to spend more time in
preparing vouchers2 this can be avoided by the automation.
Automated #eller :achine -A#:. should be introduced as soon as possible
because of present market demand of the customer and educated customer now
wants technology based banking.
Attractive incentives packages for the e)porters will help to increase the e)port
and accordingly it will diminish the balance of payment gap of National bank.
National Bank will have to encourage entrepreneurs, businessmen, rich people
and Jovernment to come forward to established ancillary organi+ations.
National Bank is to be concentrating in always monitoring the performances of its
competitors in the field of foreign trade.
Bank can provide foreign market reports that will enable the e)porter to evaluate
the demand for their products in foreign countries.
=>
'ue to lack of proper knowledge about the operation procedure and service
provide to the customers by 6<*1# certain customers are facing problem as they
have to wait for certain time to get service. And sometimes personnel arenOt being
able to operate 6<*1# without any confutation. #hey are not fully independent
handing 6<*1#. /fficial training is the solution of this problem.
Bangladesh bank should take initiative to from a high "powered committee
consisting scholars and e)perts from different discipline and professions such as
academicians, economistOs banker, lawyers etc. #o design an appropriate and
useful legal framework for *slami 6hariah based banking. #his type of committee
may be helpful for the necessary correction of government policies in *slami
banking.
Branches of National bank are not sufficient as per demand of the people. 6o
National Bank should setup new branches.
#hey should also focus on the marketing aspect by informing the customers about
its product and offering services charges.
National Bank Ltd. 6hould focuses on their promotional activities on its
marketable products.
NBL can operate one or more Branches based on *slamic 6hariah because now a
dayOs *slamic 6hariah based bank and financial institutions performed well in
business.
Arrangement of monthly C,uarterly training courses C workshop for the client
selected by the branches in order to promote investment client of the desire level.
#he bank should improve their interior design and decoration in order to create
more customer attraction.
National Bank should more concern about e-banking.
Conclusion
#odayOs business is very competitive and comple). #o survive in the related sector the
organi+ation need competitive people and has to take some effective policy. 4very
country must have a plan for important role in economic activities. Bangladesh is no
e)ception of that. Commercial banks financial development and economic developments
are closely related. #hatOs why the private commercial banks are playing significant role
in this regard.
#he national credit commercial bank Limited -NBL. is one of the best banks in respect of
service, profitability and strength among the private commercial banks in our country and
also to play a catalyst role in the formation of capital market. National bank Limited
bears a uni,ue history of its own. #he bank has set up a new standard in financing in the
*ndustrial, #rade and foreign 4)change business. *ts various deposit and credit products
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have also attracted the clients-both corporate and individuals who feel comfort in doing
business with the bank.
NBL is now been called a modern bank that undertakes all its operations at an
international standard. /ver the years, NBL has built itself as one of the pillars of
BangladeshOs financial sector and is playing a pivotal role in e)tending the role of the
private sector of the economy.
Referen&es:
Annual 9eport of National Bank Limited, !KKE,!KKI, !KKM,!KK,!K.
Duarterly daily statement of affairs of NBL 0atrabari Branch
Block.stanley. B 3 7irt. Jeoffrey.
Jordon. 4 3 Natara0an. Banking theory, law and 5ractice, 4leventh 4dition,
7imalaya 5ublishing house, 5.IK, I.
Bangladesh Bank, Annual Report: 24!2". 6tatistics 'epartment, Bangladesh
Bank, 'haka.
Bangladesh Bank, #conomic Trends$ various issues, 6tatistics 'epartment,
Bangladesh Bank, 'haka.
Bangladesh Bank, Duarterly publication of %cheduled &an's %tatistics, various
issues, 6tatistics 'epartment, Bangladesh Bank, 'haka.
Barai :.T .and :. Liakat 7ossain, $1inancial Jlobali+ation& Banking sector in
Bangladesh%. <orking paper, presented on :arch E, !KK!, #6C Auditorium,
(niversity of 'haka.
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