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How Public Relation Adds Value to Banking Industry: A Case Study on Al-arafah Islami Bank Limited, Badargonj Branch
Chapter-01 Highlights
1. Introduction
Introduction
This thesis report is prepared for fulfilling as a requirement of the MBA program. On this
regard I have been posted in Al-arafahIslami Bank Limited (AIBL), Badargonj Branch for
3-month duration from 01-12-2016 to 01-03-2016 and regular supervised &advised by the
course teacher to submit my practical learning in written form through a report. My thesis
topic is How public relation (PR) adds value to banking industry in Bangladesh: A case
study on AIBL Badargonj Branch. In this initial chapter the report will be presented with
background of the study, meaning of public relation, importance of public relation in
banking industry, tools of PR used by AIBL, rational for thesis program, reason for chosen
this topic. These help to clear about my topic properly.
Uncontrolled media include press releases, press conferences, and media tours. These are
the primary channels to deliver public relation messages to various Medias. Organizations
control the original form and content of the release and content on media tours.
However it is the media which decide what to present and how to do it. What the
audience finally sees is not necessary what is stated by the organization. The most
recent electronic media is categorized as semi-controlled. Corporate websites are
controlled by the company, but other web sites like chat rooms and forums set up by
critics a e not controlled. Special events and sponsorship s are initiated by the
companies, but participation by the press and other important publics is not under
control of the sponsoring company. Another important semi-controlled media is
word d of mouth, where the initial message often can be designed by the
organization (Wells et. al. 2003, Kotler et. al. 2005). As with other promotion tools and
marketing activities, objective have to be set, messages and media vehicles have to be
selected, and implementation of the PR plan with a follow up evaluation of the
activities have to be done (Kotler et.al. 2005) . To gain a competitive advantage, an
ability to monitor and evaluate the activities becomes critical for most PR
practitioners (Phillips 2001). Tracking of the outputs; how many news releases lead to
stories in media, and outcome; attitude or behavior change, is necessary to prove the
effectiveness of the PR program to be able to learn and fine-tune future campaigns.((Wells
et.al. 2003).
1.3Problem discussion
Lages&Simkin (2003) present PR as an emerging science discipline and argue that
PR research is in need of developing concrete measurement tools which will allow
empirical evaluation and clearly identify its driving forces. The on-going
conceptualization is also moving PR more to a management discipline instead of its
earlier label as a communication activity. According toBroom et.al. (1997) PR is still
clearly lacking in definition and conceptualization. Without clearly explained concepts,
researchers have a tough work conduct empirical observations and construct
meaningful theory. Presumably for this reason, the majority of past research in the
area of PR is descriptive leaving a gap in explaining the actual activities observed in
the business world.Broom et.al. (1989) argue that journals in PR are not responsive
to the interest of practicing professionals and that publications provide little help to
students, teachers, practitioners and managers to understand and utilize research in
PR. There is relatively little cross-situational, theory building research to be found. More
recent research has shown some improvement in banking sector. The problem in the area
of PR seems to remain because it is not quit easy to define PR & perform accordingly.
This research which is going to be conducted will focus on fulfilling the following objectives:
Bank is very busy organization in comparison to others. There is rush of people for
about whole the day and the officers have to transact with them. So it is very tough and
sometimes burden for them to allocate extra time for an Internee.
Chapter-02 Highlights
2.Literature review
2. Literature review
In this chapter literature relevant in the area of PR is reviewed and presented. The
theories connected to the research area will be reviewed and presented in a
conceptual framework, which will clarify the main topic to be studied and aid data
collection.
function effectively as a liaison between a company and the media. (Wells et.al.
2003)
Employee relations : Employee relation programmers communicate information to
employees. The function of employee relations belongs both to PR and human
resource management. These kinds of programmers are often called internal
marketing. (ibid.).
Financial relations : Financial relations includes all communication efforts aimed at the
financial community, such as press releases sent to business publication s, meetings
with investors and analysts, and annual reports which the government require of public
held companies. (ibid.)
Corporate relations : Corporate relation programs focuses on organizations image and
reputation. The goal is to persuade the public to perceive the company in a positive
light. According toWells et.al. (2003) the public relation expert Fraser Seitel has
stated that it takes a great deal of time to build a favorable image for a
corporation but only one slip to create a negative public impression. The goal of
reputation management in a corporate relations program is to strengthen the trust
that stakeholders have in an organization. Since corporate reputation is a perception,
it is earned through deeds, not created by advertising. (ibid.)
Public affairs : Focuses on corporate communication with governments and with
the public on issues related to government and regulations. Issue management is
another term for this function. In addition to government relations, public affair
programs also monitor public opinion about issues central to the organizations
interest and develop programs for communicating to, and with the public about
these issues. (ibid.)
Attendance at public events: In order to attract public attention and keep it engaged
with a particular organization or an individual, PR specialists take an advantage of
every public event and the opportunity to speak publicly. This enables them to directly
reach the public attending the event and indirectly, a much larger audience.
Press releases: Information that is communicated as a part of the regular TV or/and
radio programmed, newspapers, magazines and other types of mainstream media
achieves a much bigger impact than advertisements. This is due to the fact that most
people consider such information more trustworthy and meaningful than paid adds.
Press release is therefore one of the oldest and most effective PR tools.
Newsletters: Sending newsletters relevant information about the organization or/and
its products/services - directly to the target audience is also a common method to
create and maintain a strong relationship with the public. Newsletters are also a
common marketing strategy but PR specialists use it to share news and general
information that may be of interest to the target audience rather than merely promoting
products/services.
Blogging: To reach the online audience, PR specialists use the digital forms of press
releases and newsletters but they also use a variety of other tools such as blogging and
recently, micro blogging. It allows them to create and maintain a relationship with the
target audience as well as establish a two-way communication.
Social media marketing: Like its name suggests, it is used primarily by the marketing
industry. Social media networks, however, are also utilized by a growing number of
PR specialists to establish a direct communication with the public, consumers,
investors and other target groups.
Speeches: Since you are supposed sophisticated information technologies please it
record them to use on the required occasion.
Seminars: Organize seminars, workshop frequently & invite prospects customers,
vocal persons, leaders & intellectual etc.
Annual report: Publish annual report of your banks & use good quality paper & print
devices. Scientifically & technically annual report would you help you a lot.
Charitable donation: In tune with principle of social marketing, you are supposed to
make significant contribution to the development & welfare of the society. Please
donate where you find necessary. To be more specific when you find natural
calamities show your attitude& worth. This is likely to help you n future.
Sponsorships: A number of events are organized & should keep your eyes open &
mind active. Please dont miss to sponsor the events where a number of people from
cross section f the society are to assemble,.
Community relations: Develop community relations which would help you in
projecting your image.
Identity media: Take support of media helping you in the projection of positive
image.
Wells et al (2003) describes three categories that divide the tools of PR, depending
on the amount of control the company has in its communication. Since the tools
whichcan be utilized in PR, are well known tactics in organizations, they are not
described in further terms.
Controlled PR
When a company can control the use and placement of their PR tools they are
utilizing controlled channels Examples of tools in this category are:
Publications: Brochures, flyer s, newsmagazines
Annual reports
Displays, exhibits
Product placements
Speakers
Photographs
Staged events (open houses, anniversary celebration)
Uncontrolled PR
When companies relies the use and placement of their PR to media, they are using
Uncontrolled channels. Examples of tools in this category are:
Publicity (radio, TV and print media)
News releases (print, audio, video, e-mail)
Press conferences and media advisory (media kits, fact sheets, background
Information)
By-lined articles
Talk and interview shows
Semi-controlled PR
When some aspects of the PR activities are controlled and initiated by the company, but
other Aspectsremain uncontrolled, they are utilizing semi-controlled channels. Examples of
tools in this category are:
Special events and sponsorship
Interpersonal communication
Electronic communication (web sites, chat rooms)
Word of mouth
When utilizing above mentioned tools, PR teams needs to work closely with the
marketing Department. PR tends to complement advertising activities. While advertising
is pushing a banks desired message to its markets, PR is there to sprinkle the
message with credibility. Banks often realize the importance of PR activities, but may
differ in the way they are utilized in the marketing mix. (Beavers-Moss,)
The "7 Cs of Communication" is a much-quoted list, first provided by Cutlip and Center
in 1952 in Effective Public Relations. The original list was a follows:
Completeness
Conciseness
Consideration
Concreteness
Courtesy
Clearness
Correctness
Various versions of this list, often modified and unattributed, are listed in many business,
communications, marketing and public relations books and courses.
Press
One-way Uses persuasion and manipulation to influence
agency/publicity
communication audience to behave as the organization desires
model
outcome like attitude or behavior change. Such tracking is done to prove the
effectiveness of PR programs and to learn from it to be able to fine-tune further PR
activities (ibid.). Evidently there is a lack of knowledge on how much evaluation
techniques there are, and how much it is worth to utilize them in order to provide the
organization with good evaluative information (Phillips, 2001).
To measure and evaluate PR activities initiated by the organization, Schmitz
(2004) provides two general ways to do it: Do it yourself by reading newspapers
and magazines, relevant websites, check out what is mentioned about your
organization in radio and TV. This is a very time consuming activity and therefore it
can be more effective to outsource this activity to a media-monitoring agency.
Further, it is recommended to mix own monitoring, and media-monitoring
agencies to get out as much valuable information as possible (ibid.). Following is a
guideline provided by Wells et.al (2003) with common types of evaluation
measures used in PR:
Output Production. Numbers of PR products, such asnews releases or event
activities generated.
Distribution. Number of media outlets (TV stations, newspapers) receiving PR
products.
Coverage. Number and size of clips, column inches, seconds, or minutes of
time or space.
Impressions. Media placements multiplied by circulation or broadcast reach.
Advertising value. Equivalent ad cost for time or space.
Systematic Content Analysis. Positive or valence (whether the story or
mention seems to be more positive or negative), key messages (the idea in the
story) , sources, and prominence.
Outcome Objectives achieved:
Awareness. Aided and unaided to recall the target audience.
Attitudes. Perceptions and preference or intent to buy.
Behavior. Did they do what you wanted them to?
According to Beavers-Moss ( 2001) it is important for the bank to identify what gain
is expected from the PR activities. If the goals are defined explicitly and measurably, they
are easier to achieve.
4. For what you say, for how you say it, and to whom, there are certain short-
term or long-term ends or objectives you are interested in accomplishing. Based on
how and what you say and do, you would like those you reach to respond in a certain way.
from existing literature are hard to find. Provided below are theories relevant to
answer our research questions.
enduring and lasting asset. The reputation also wins a competitive advantage for the
organization in an increasingly crowded marketplace. Therefore a good corporate
reputation is an asset of immense value. However, it is intangible and both difficult
to measure and difficult to replicate by other companies. The reputation is a highly
visible signal of an organizations capabilities and reliability providing information
about future performance (ibid.).
Research has shown that a positive reputation does contribute to corporate success.
This has been recognized and utilized by senior managers since the mid-1980s, to
build and sustain favorable corporate reputation. The management of reputation has
also developed into a major tool for the communication strategist, with the focus on the
role of gaining the support and approval of important audiences. This is a value creating
strategy in one way or another. Today there is no doubt that corporate reputation is
given more attention than ever before since marketers and communicators are
concerned about their companies reputations and advantages brought by good
reputation (Dolphin, 2004). The loss of reputations also seen as a larger problem than
loosing money for an organization (Hutton et.al. 2001).
Dolphin (2004) states some clear differences between corporate reputation and
corporate identity that is often used interchangeably by both management and
scholars, which causes confusion. Reputation is gained over time and may not be that
open for rapid manipulation, an image can, unlike from reputation, clearly be created
and manipulated in a short period of time. Budd (1995) also confirms that corporate
reputation may not be easy to change within a short period of time even though extensive
communications with the public is utilized.
Hutton et.al. (2001) define reputation management as an emerging business function,
resting on the foundations of what traditionally is termed as public relations,
clearly relating the two activities to each other. Advocates of reputation management
state that the new term will act as a galvanizing concept that will enhance public r
elations stature, perceived value and centrality within organizations.
Reputation management is a general phenomenon that does not need to occur in response
to a reputation problem. Organizations with poor reputations may engage in actions
that enhance its reputation, but also organizations with a favorable reputation may
engage in actions designed to sustain or enhance its reputational standing (Weiss
et.al. 1999). According to Nakra (2000) public relations practitioner s must develop
the ability to manage corporate reputation by taking a "360 degree" view and
communicate well with all stakeholder s with a unified message.
With todays ongoing globalization and increasing competition, bank marketers must
know how to protect and uphold their reputation. Considering the intangible nature of
bank products and services, credibility and value are gained mainly from the
organizations established reputation. Good PR can enhance a banks marketing and
improve the institutions overall competitiveness (Beavers-Moss, 2001). The corporate
reputation is especially important when acting on a market where the products and
pricing is highly similar and hard to differentiate.
A sound reputation must be the foundation on which to position an undifferentiated
product. An international bank comments that, banking is a reputation business,
In the banking industry services provided are to a high degree similar , which makes it
hard to make a comparison between banks and their offerings. Therefore in banking,
credibility and value is mainly gained from the organizations reputation. It is also
argued that reputation is the most valuable asset of a bank ( Beavers-Moss, 2001).
Due to the obvious importance of PR activities in the banking industry, and because
existing research does not fully describe the PR aspects continuously handled by
banks to build upon their reputation, our aim in this study is to shed more light
over the PR activities in banking industry. Through understanding the importance of PR,
many private commercial banks in Bangladesh practice PR activities & also keep separate
department.
2.13Definition of Banking
Banking all functions of a bank in the course of its business may be termed as banking. In
the Banking Companies Act, 1991 (Act 14 of 1991), the word banking has been defined
to mean the accepting, for the purpose of lending or investment, of deposits of money
from the public, repayable on demand or otherwise, and withdraw able by cheque, draft,
order or otherwise. But any company which is engaged in the manufacture of goods or
carries on any trade and which accepts deposits of money from the public merely for the
purpose of financing its business is excluded from being deemed to transact the business
of banking.
Islami Bank Bangladesh Limited is a Joint Venture Public Limited Company engaged in
commercial banking business based on Islamic Shariah with 58.03% foreign shareholding
having largest branch network (236 Branches & 30 SME/Krishi Branches i.e. total 266
Branches) among the private sector Banks in Bangladesh. It was established on the 13th
March 1983 as the first Islamic Bank in the South East Asia.
It is listed with Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd.
Authorized Capital of the Bank is Tk. 20,000.00 million ($ 267.02 million) and Paid-up
Capital is Tk. 10,007.71 million ($ 133.61 million) having 63,001 shareholders as on 30th
June 2011.
4. AB Bank Limited
AB Bank Limited, the first private sector bank was incorporated in Bangladesh on 31st
December 1981 as Arab Bangladesh Bank Limited and started its operation with effect
from April 12, 1982.AB Bank is known as one of leading bank of the country since its
commencement 29 years ago. It continues to remain updated with the latest products and
services, considering consumer and client perspectives. AB Bank has thus been able to
keep their consumers and clients trust while upholding their reliability, across time.
In the backdrop of economic liberalization and financial sector reforms, a group of highly
successful local entrepreneurs conceived an idea of floating a commercial bank with
different outlook. For them, it was competence, excellence and consistent delivery of
reliable service with superior value products. Accordingly, Prime Bank was created and
commencement of business started on 17th April 1995. The sponsors are reputed
personalities in the field of trade and commerce and their stake ranges from shipping to
textile and finance to energy etc.
Prime Bank has already made significant progress within a very short period of its
existence. The bank has been graded as a top class bank in the country through
internationally accepted CAMELS rating. The bank has already
6. AIBL
The Bank offers a wide range of banking services through its 114 branches in the country,
including accepting deposits, making loans, discounting bills, conducting money transfer
and foreign exchange transactions, and performing other related services such as safe
keeping, collections and issuing guarantees, acceptances and letter of credit.
At present, the bank has 114 branches of which 39 branches are in Dhaka Division, 34
branches are in Chittagong Division, 07 branches are in Syllet Division, 04 branches are in
Rajshahi Division, 11 branches are in Khulna Division and 04 branches is in Barishal
Division & 02 branches are in Rangpur division.
All the 114 branches are computerized under distributed server environment. Another few
branches are planning to open within December 2015. AIBL has already started their on-
line, SMS and ATM banking facilities for their clients.
There were 52 employees in the initial stage of the bank. At present the number of
employees has become approximately 1056.The bank was started with 500 core taka. Now
its present capital is more then 1,500 core taka. The targeted depository money for savar
branch was 20 lakh taka. But the branch was able to collect deposit about 18 lakh taka in a
competitive market.
2.15Banks in Bangladesh:
The central bank of Bangladesh is named as Bangladesh Bank. The other banks which are
operated in Bangladesh are given below:
Three Nationalized Commercial Banks are dominating the Bangladeshi banking system,
which together controlled more than 50% of deposits and operated about 3500 branches as
of December 31, 2009.
Sonali Bank
Janata Bank
Private Banks are the highest growth sector due to the dismal performances of government
banks. They tend to offer better service and products. Their name and corresponding web
addresses are given below
AB Bank ltd
In Bangladesh there are many foreign banks. Their name & their corresponding web
addresses are given below
Citibank
HSBC
Habib Bank
Woori Bank
Bank Alfalah
Out of the specialized banks mentioned above,there are two banks named Bangladesh
Krishi Bank and Rajshahi Krishi Unnayan Bank were created to meet the credit needs of
the agricultural sector while the other two banks named Bangladesh Shilpa Bank (BSB) &
Bangladesh Shilpa Rin Sangtha (BSRS) are for extending term loans to the industrial
sector. Their name are given below
The top largest banks of Bangladesh include Sonali Bank Limited, IBBL, Dutch-Bangla
Bank, HSBC Bank Bangladesh, among others.
Sonali Bank is the largest bank of the country, emerged as the leading Nationalized
Commercial Bank by proclamation of the Banks' Nationalization Order 1972 (Presidential
Order-26).
In Bangladesh, HSBC is a very popular choice for customers because of the Group's
international reach and a comprehensive range of financial products and services. HSBC's
treasury and capital markets business ranks among the largest in the world and serves the
requirements of supranational, central banks, institutional investors, international and local
corporations, and financial institutions as well as other market participants.
Dutch-Bangla Bank is the first bank in Bangladesh to be fully automated and introduce
Electronic Banking. It has the largest ATM network in the country. This gives clients full
access to 'anytime anywhere' banking nationwide. All international and many local banks
use the DBBL ATM network for their own clients. Additionally, DBBL has the largest IT
budget in Bangladesh. It maintains the state-of-the-art Electronic-Banking Division to
oversee and maintain DBBL's investment as well as implementing upcoming projects.
Chapter-03 Highlights
3. Introduction
3.6.5Audit Committee:
3.7.1 Product
3.7.2Deposit
3.8.0 Services
3.20Dividend
3.25.0 Al-arafahIslami Bank Ltd Becomes Lead Sponsor of Children Science Congress
2013
3. Introduction:
The company philosophy A step ahead in time has been precisely the essence of the
legend of Asian success; the bank has been operating with talented and brilliant personnel,
equipment with modern technology so as to make it most efficient to meet the challenges
of 21st century. At first in 1995 the bank incorporated as Al-arafahBank Ltd. and then in
January 01, 2009 the bank changes its name and mode of business and incorporated as Al-
arafahIslami Bank Ltd.
Fax : 880-02-9561637
E-mail : bcs@AIBLbd.com
Website : www.AIBLbd.com
SWIFT : AIBBDDH
Auditors:
Chartered Accountants
Dhaka-1000, Bangladesh
Email: syful@intechworld.net
Phone: 9349647-8
E-mail: l.counsel@bdonline.com
Tax Consultant
Chartered Accountants
Phone: 9351457,9351564
Fax: 8358817
Sl No.
Name
Position
Address
Dhanialapara
Chittagong-4100
Mirpur, Dhaka
Bara Moghbazar.
Member
Al-arafahIslami Bank Limited aims to become one of the leading banks in Bangladesh by
quality of operations in their banking sector. The bank has some mission to achieve the
organizational goals. These are listed below:
Al-arafahIslami Bank Limited extends highest quality of services, which attracts the
customers to choose them first.
Al-arafahIslami Bank Limited provides products and services that encourage savings.
Al-arafahIslami Bank Limiteds main business mission is to obtain fine position in the
banking sector of Bangladesh as well as internationally. It also emphasizes on a
reasonable return from its investment to satisfy the shareholders.
For this mission AIBL has the following objectives and goals:
Their main objective is to maximize profit, which in turn will maximize wealth.
3.6.0Organizational Structure:
Top management of the bank is supported by human resource strength of 483 executives
and officers. For smooth functioning of the Bank, following committees have been
formed: Management committee (MANCO) comprises of senior members of the
management headed by Managing Director of the bank. Asst Liability Management
Committee (ALCO) headed by the Managing Director, is responsible for balance sheet
risk management. The committee participate is the monthly ALCO meeting and review the
liquidity position, review rate of interest on deposit and lending, and review the ALCO
papers on presentation by treasury back office on the position of profit, deposit, advance,
cost analysis, maturity bucket of deposit & advance, balance sheet, profit and loss account
and many other issues relating to banks business and assets-liability management.
Operational loss may arise form errors and fraud due to lack of internal Control and
Compliance. AIBL has separate Internal Control and Compliance division (ICCD) headed
by a Vice President. This Division consists of 3 units, namely:
c) Monitoring Unit.
Corporate governance is about how corporation is running its operations to achieve its
corporate objectives. Bangladesh Bank (BB) gives emphasis on implementing corporate
governance among the financial institutions and to do that, BB emphasizes
implementation of the guidelines issued by them for improving corporate governance in
banking. Good Corporate Governance practices enhance an entitys corporate image and
market credibility, which attract capital and increase its borrowing power. These can be
reflected in the quality of financial reporting and disclosures; strength of internal control
system and internal audit function induction of professionally competent, independent
non-executive Directors on corporate Board; formation of Audit Committee; delegation of
authority to executives and staff; protection of corporate governance for strengthening
organizational strength. With a view to ensure effective participation and deep interest in
the affairs of the company and as per Articles of Association of the Company and as per
Bangladesh Bank Circular No. 16 dated March 24, 2003 the bank has set up the following
2 committees:
AIBL has constituted 09 members executive committee of the board as per Bangladesh
Bank guidelines to ensure corporate governance in the business of which managing
director of the Bank is Ex-officio Member. The executive committee of the board is
responsible for developing policy and strategy for smooth operations of business and
business development of the bank to ensure maximization of shareholders wealths
protecting other stakeholders interest in the company Mr. Badiur Rahman, Chairman of
the board of Directors is the Chairman of the present Executive Committee of the bank.
He is very dynamic person and leading the executive committee of the bank in a very
manner.
3.6.5Audit Committee:
AIBL has formulated an audit committee can play an effective role in formulating an
efficient and secured banking system. The Audit Committee has been formed comprising
three members of the Board of Directors. As per corporate governance guidelines the
Chairman of the Audit Committee should have sound knowledge and expertise in finance
& accounting or auditing. Mr. Md. Habibur Rahman, who is also a Director of the Bank, is
Convener of the committee. He is associated in banking field over long years.
3.7.1 Products
Loan Schemes:
Term Loan
Loan (General)
Transport Loan
Hire-Purchase Scheme
Financial Products:
3.7.2Deposit Rate(%)
Up to 50 Lac 10.00%
3.8.0 Services:
AIBL have set up Wide Area Network through Radio, Fiber-Optics & other available
communication media systems to provide any branch banking to our customers of one
branch is now able to deposit and withdraw money at any of our branches. All Branches
are included in our Wide Area Network. No TT/DD or cash carrying will be necessary.
Al-arafahIslami Bank Ltd. has officially launched SMS banking service from December
17, 2007.Locker Service :For safekeeping of customers valuables like important
documents and goods like jewelries and gold ornaments, AIBL Locker Service is available
in most of the Branches in urban areas.
Utility Bills:
Money laundering risk is defined as the loss of reputation and expenses incurred as
penalty for being negligent in prevention of money laundering. For mitigating the risk the
bank has designated Chief Compliance Officer at Head Office and Compliance Officer at
branches, who independently review the transactions of the accounts to verify
suspicious transactions. Manuals for Prevention of Money Laundering, KYC and
Transaction profile have been introduced. Training has been imparted to Executives,
Officers and staff for developing awareness and skill for identifying suspicious
transactions and other Money Laundering related activities.
Rangpur Division
3.10.1Proposed Branch
During the year 2004 the total number of branches of Al-arafahIslami Bank Limited stood
at 12, in 2005 it was not changed and in year 2006 it stood at 15 branches. From 2007 the
no. of Branches increased rapidly. In 2007 it was 20, in 2008 it was 29 and in 2009 it was
34& finally in 2013 it is 113. The Bank has proposed a long-term program to Bangladesh
Bank to open more branches in phases in important locations in Bangladesh.
Year Branch
2004 12
2005 12
2006 15
2007 20
2008 29
2009 57
2010 67
2011 93
2012 97
2013 101
2014 110
2015 114
Financial Performance:
Interest expense ratio:Interest expense ratio is different method to evaluate the banks
expense management.
Interest Exp. Ratio = Interest expenses / Total operating income (Tk. in Million)
Interpretation: From the above data we see that interest expenses ratio was more over
stable up to 2012-2014 but increased more in 2015. It indicates that the bank was trying to
keep the interest expenses more stables up to 2014 but in later period they were unable to
maintain the track.
CAMEL Rating:
The early warning system for problem banks through the CAMEL (Capital, Assets,
Management, Earnings, and Liquidity) rating technique introduced tor strengthening and
modernizing Central Banks supervision and inspection was continued during the year.
C = Capital adequacy
A = Asset quality
M = Management efficiency
E = Earnings
L = Liquidity
These cover all major aspects of financial indicators. To appropriately identify banks
financial position, rating is used which is calculated by following way-
Here we use the data of 2014, because all of the data of 2015 required for CAMEL
rating is not available.
Table;3.9 Interpretation:
Since the capital adequacy ratio of the Al-arafahIslami Bank Limited in 2014 was
16.49%. So, the capital adequacy of Al-arafahIslami Bank Limited is strong. That means
rating is 1.
= 0.06%
Interpretation:
Classified loan ratio of the Al-arafahIslami Bank Limited at 2014 was 0.06%. So, the
asset quality of Al-arafahIslami Bank Limited is Strong. That means rating was 1.
Ratio/Year 2014
Net Income 58.53
Total Assets 26,942.00
Return on Assets 0.0021%
Customer of one branch is now able to deposit and withdraw money at any of our
branches. All Branches are included in our Wide Area Network.
No TT/DD or cash carrying will be necessary.
For safekeeping of customer's valuables like important documents and goods like
jewelries and gold ornaments, FSIB Locker Service is available in most of the Branches in
urban areas.
To suit the need of clients of different strata in the society so as to tap resources for use in
the banking channel for accelerating the pace of economic operation, Mobilization of fund
is one of the functions of banking business. With the view of above, AIBL has been
operating a number of popular and innovative financial products from time to time
considering the benefit of depositors, clients and bank.
In the backdrop of the challenging environment of 2014, AIBL focused on core banking
business, made good growth in profitability and maintained a sound asset quality. The
bank remained financially strong by dint of its resolute focused on the vision of becoming
countrys finest corporate citizen and also emphasis its focused SME, Retail Consumer
relentless pursuit of providing excellent and need based customer service.
The bank mobilized deposits of Tk.109, 905.56 million as at December 31, 2015
compared to Tk. 78,145.04 million till 2014.Total Investment and advances stood at Tk.
96,304.22 Million at the end of the year 2015, which was Tk. 69,467.32 Million at the end
of the year 2014. Import Business stood at Tk.24, 056.20 Million in 2015 compared to Tk.
29,534.90 Million in 2014. Export Business stood at Tk. 7,279.40 Million in 2015 as
against Tk. 10,260.60 Million in 2014.The bank collected foreign remittance of Tk.4,
Deposit
1% 4%
6%
Bill Paybale
15% Current Account
Savings Bank Deposit
74% Deposit Schemes
Fixed Deposit
Al-arafahIslami Bank Limited has able to increase its investment deposit adverse
condition in the domestic as well as in the global economy. Total Investment of the bank
stood at Tk. 96,304.22 Million as on December 31, 2015 against Tk. 69,467.32 as on
December 2014 with a growth rate of 38.63%. Investments are the core assets of a bank.
The bank gives emphasis to acquire quality assets and dose appropriate lending risk
analysis and follow all the terms and conditions of IRM (Invest Risk Management) while
approving all sorts of investment to clients.
Import Business:
Import trade finance by AIBL Tk. 24,056.20 Million in 2012. Larger LCs were opened
mainly for importing wheat, edible oil, capital machinery, coal, cotton, fabrics, and
accessories.
Export Business:
AIBL successfully handled export documents of Tk. 7,279.40 Million during the reporting
year 2012. Readymade Garments, Knitwear, Frozen Foods, Fish, Lather Goods, Agro
products, Handcrafts etc. were the major export finance sectors.
Foreign Remittance:
Bank has procured foreign remittance Tk. 4,731.60 Million as of December 31, 2012.
Meanwhile, the bank has made enormous progresses in dealing remittance business with
some leading exchange house like Western Union, Placid NK Corporation, Moneygram,
Express Money, SuperX 10 global money etc. Moreover our two 100% owned exchange
houses in Canada & Italy have sent substantial amount of foreign remittance.
Correspondent Banking
Correspondent banks are trade partner of International trade. AIBL has already achieved
tremendous success in foreign trade. The bank has established correspondent relation with
1400 o branch of 200 different renounced banks at financial important location across the
world.
Considering the demand of the market and our total committeemen to support and serve
the customers from different angle of the bank lunched subsidiaries namely Al-
arafahIslami Capital & Investment Limited, Al-arafahIslami Exchange House Canada, Al-
arafahIslami Exchange House Italy to provide merchant banking service and superior
remittance services respectively. We believe that such endeavor will widen the
opportunity of the bank to serve the customer from different aspect with utmost care.
Beside these, the principle finance products and service of bank are as follows:
a) Deposit products
Additionally
b) Investment Products
Corporate Finance
Commercial Finance
Industrial Finance
Lease Finance
Syndicate Finance
c) Services
ATM Card
SMS Banking
Locker Service
Mobile Banking
ICT Division of AIBL is using latest technology for providing best banking services by
making the bank fully redundant online data connectivity using high speed fiber, radio link
and satellite communication for all branches to provide uninterrupted data communication
with DATA CENTER.
However the bank has a plan to expand its area of operation by opening new branches to
cover rest of the important urban and rural areas of the country in 2013.
time it would come in to the light. Another one was on the development of a new deposit
scheme product namely Protyasha. Product development committee is exploring the
possibilities of lunching the same and hopes it would also come in to the light at the
earliest. R&D division is always making all out efforts for new ideas and innovation of
effective process in relation to the banking operations and services.
HR Strategy:
The Banks aim is to make equal opportunity for all concerned.
Provide required training for newly appointed employees for their development.
Make appropriate placement based on the need of the organization and experience
& qualifications of employees.
Provide competitive pay package and other benefits to maximize the satisfaction
level and retain qualified personnel.
To make its employees more efficient Al-arafahIslami Bank Ltd. Has shifts its
Training Institute from Gulshan-2 to Bashundhara a spacious place at plot# 12, Block#
A, Bashundhara R/A Dhaka. The bank is going to appoint faculty members for its
Training Institute in order to provide need-based training for the employees. From the
inception the Training Institute of the bank, it has been provide various training like
Fundamentals of Banking, Islamic Banking, General Banking, Islamic Investment
Mechanism, Trade Finance and Foreign Exchange, Information & Communication
Technology, SME & Agriculture, Mobile Financial Services, Online Banking,
Malpractices in Banking, Anti Money Laundering, Green Banking and many other
related to.
3.19Dividend
The Board of Directors recommended 10% stock dividend for year ended December
31, 2012.
Since the year 2011 was a nail biting tends period for in all involved in banking
business, due to region on recession and economic mayhem across the globe and sign
of recovery still too frail and fragile to be taken into consideration the year 2012 will
be the year of cautious move and calculative risk. However, the bank will stick to its
fundamental task of doing business in a socially and environmentally sustainable
manner. We are quite confident of implementing the core banking solution, BANK
ULTIMAS within this year. Nonetheless, this year would bring forth intense
competition among the bank as investment opportunity would be conscious due to
global recession. Moreover dearth of liquidity and hefty government borrowing from
the banking and public sector as well, would make the situation more edge. Our aim is
to collect the savings of lower-middle class through innovative and attractive scheme
deposit products and simultaneously we would go for the class banking through
Priority Banking. With the advent of state of art technology we will be able to earn
supremacy in terms of customer service by providing them satisfaction to all visible
angles.
Since Interest rate risk is suppose to be the greatest threat due to rise in interest rate in
the market along with filthy competition, we would emphasis on procuring No/Low
cost deposit through vagarious campaign all the year round and would be able to retain
and attract potential customers by rendering services to the extent of highest possible
degree. Just after inception, we have attained strong footing in terms dealing with
foreign currency and the trend would remain the same and thereby international trade
and remittance from Bangladeshi expatriates will also be emphasized. AIBL has also
planned to expand its exposure in following areas:
Internet Banking
Major CSR Activities of Al-arafahIslami Bank Ltd. In the year 2015 are as follows:
1. Distributed 50000 pieces blanket among poor & cold hit people of this country.
2. AIBL going to establish Al-arafahIslami Bank School, where students will get free
education & Al-arafahIslami Bank Hospital, where poor patients will get free
treatment. Primary Budget for the each project is Tk. 50 Lac.
3. AIBL Donated 25 Lac taka to Rotary Kenayat Ali-Anowara Khatun Old Home.
4. AIBL Donated 5 Lac taka to Dr. SK Mazumder Agriculture & Vocational Institute,
to establish a Hatchery.
6. AIBL Donated Computer for the students of Uttra School & College, South
Banasree, Madartak, Shobujbag for their modern as well as contemporary
education.
7. AIBL Donated 5 Lac taka to SEID Trust for providing educational materials to
physically & mentally disabled 300 Students.
10. AIBL Donated 1 Lac taka to Thelasamia Welfare Centre Bangladesh, Chittagong.
13. AIBL Donated 1 Lac taka to Kidney Awarness Monitoring & Preventation Society
for enriching knowledge of general people about Kidney & treatment of poor
patients.
15. AIBL Donated 5 Lac taka to Bangabandhu Sheikh Mujibor Rahman Charitable
Fund to assists poor & disables Pediatric Rheumatology Patients.
16. AIBL Donated 2 Laptop, 1 Printer, 1 Multimedia Projector & 1 Scanner to each of
the 21 educational institutions at Shenbagh, Noakhali.
17. AIBL Sponsored Entrance Gate & Parents Waiting Room of Agrani School &
College, Azimpur, Dhaka.
18. AIBL Donated Formalin De- Hydrated Machine to The Federation of Bangladesh
Chambers of Commerce and Industry (FBCCI).
19. On the occasion of Celebrating International Mountain Day 2012, AIBL donated 1
Lac taka to M A Mohit, President of Bangla Mountaineering & Trekking Club.
21. AIBL Distribute 50 Scholarships among disabled poor students of various Buddhi
Protibondhi school of Dhaka city.
22. AIBL Donated a Generator amounting Tk. 8,50,000/- to Upazilla Health Complex,
Agoiljhara, Barisal for its 50 beds Hospital.
full of happiness. The bank distributed 10,000 blankets worth Tk 2.5 million among cold-
hit people at various areas across the country.
Other sectors of the bank's CSR donation include: Tk 0.4 million to Bejoy Parban, Tk 0.5
million to Dr SK Mazumder Agriculture and Vocational Institute, 30 sewing machines to
Muktijodhha Sangsad Jessore Zila Unit Command, some computers to Uttaran School and
College, Tk 0.5 million to SEID Trust, Tk 0.1 million to Disabled Community Advanced
Foundation in Sylhet, Tk 0.5 million to Biswa Shahitto Kendro and educational
equipments to 21 institutions in Noakhali.
As a part of the Corporate Social Responsibility (CSR) Programme, Al-arafahIslami Bank
Limited (AIBL) arranged free eye treatment for the distressed orphan children recently.
In association with the Bankers Forum, Al-arafahIslami Bank Limited managing director
A. A. M. Zakaria distributed spectacles to the orphans, says a press release.
Among others, deputy-managing directors, Md. Abdul Kuddus, Md. Sayedul Hassan and
the head of marketing Azam Khan were present on the occasion.
Al-arafahIslami Bank Limited (AIBL) was recently awarded the Corporate Social
Responsibility (CSR) Award 2009 by Bankers Forum.
AM. Zakaria, Mana- ging Director, Al-arafahIslami Bank Limited received the award from
former Bangladesh Bank governor Dr Salehuddin Ahmed at a function held at CIRDAP
auditorium in the city, said a press release. The bank was awarded the CSR award in
recognition of its active participation in the field of Corporate Social Responsibility (CSR)
Programmed.
Chapter-04:Highlights
4.1.1 Respondent
4.1.0 Survey
4.1.2 Questionnaire
4.2.0 Population
4.1.4 Sampling
4.1.3 Interview
4.6Analyzing Data
In this chapter the methodology of the research is presented. The selections and
implications of the research methods are explained together with justifications of the
choices. The chapter ends with a conceptualized summary of the methodology process.
With a view to conducting a research study, what is necessary is to design the framework
and select the appropriate research methodology. A research design is simply a framework
or a plan for a study that may be used as a guide in collecting and analyzing data. On the
other hand, the research methodology is a way to systematically solve the research
problem. Methodology means the underlying principles and rules of organization of a
philosophical system or inquiry procedure.There are various methods of conducting the
research, such as- Interview Method, Observation Method, Historical Method, Statistical
Method, Questionnaire Method and the like. Given the nature of the present study, it is
required to collect data/information from the primary and secondary sources
4.1.0 Survey
A survey is a data collection tool used to gather information about individuals. Surveys are
commonly used in psychology research to collect self-report data from study participants.
A survey may focus on factual information about individuals, or it might aim to collect the
opinions of the survey takers. A survey can be administered in a couple of different ways.
In one method known as a structured interview, the researcher asks each participant the
questions. In the other method known as a questionnaire, the participant fills out the
survey on his or her own. Surveys are generally standardized to ensure that they have
reliability and validity. Standardization is also important so that the results can be
generalized to the larger population.
4.1.1 Respondent
Respondent has been for many years the usual term for an individual who takes part in a
market research project. However, this is increasingly replaced by the term 'participant', as
researchers and clients recognize the value of a more collaborative interviewing
relationship. That is, the research subject is no longer regarded as a passive object to be
studied, being kept in the dark about the research and its objectives and simply
'responding', but as a valued partner in an exploratory process.
4.1.2 Questionnaire
A questionnaire is a means of eliciting the feelings, beliefs, experiences, perceptions, or
attitudes of some sample of individuals. As a data collecting instrument, it could be
structured or unstructured. The questionnaire is most frequently a very concise, preplanned
set of questions designed to yield specific information to meet a particular need for
research information about a pertinent topic. The research information is attained from
respondents normally from a related interest area. The dictionary definition gives a clearer
definition: A questionnaire is a written or printed form used in gathering information on
some subject or subjects consisting of a list of questions to be submitted to one or more
persons.
4.1.3 Interview
An interview is a direct face-to-face attempt to obtain reliable and valid measures in the
form of verbal responses from one or more respondents. It is a conversation in which the
roles of the interviewer and the respondent change continually.
4.1.4 Sampling
4.2.0 Population
A population can be defined as including all people or items with the characteristic one
wish to understand. Because there is very rarely enough time or money to gather
information from everyone or everything in a population, the goal becomes finding a
representative sample (or subset) of that population.
founded on empirical data. The researcher establishes theories and models that are
based on different phenomena in reality. Thedeductive approach means that the
researcher is using existing theories and investigates these empirically with different
methods. (Eriksson & Wiedesheim-Paul, 2001). The frame of reference in this study is
based on existing theories and therefore the approach is deductive.
According to Yin (2003) the interview is the most important source when it comes to
obtaining information within a case study.
There are three different kinds of interviews: open- ended interviews, focused interviews
and survey interviews. The most common interview is the open-ended, where the
researcher ask s questions about a certain issue as well as letting the respondent to
propose his or her own. Insights and opinions about the matter . A focused interview
can be open-ended but the interview is often done faster. The researcher is also most
likely following pre-made questions. A survey interview is structured in the way that
the researcher is following a more strict form of questions, similar to formal survey.
It is focused on collecting quantitative data. (Yin, 2003).
Due to the nature of the research I have used a mix of open-ended and focused
interviews. With an interview guide as a foundation, the respondents were able to
talk freely about the aspects surrounding the questions.
According to Eriksson & Wiedersheim-Paul (2001) there are two kinds of data,
primary and secondary data. Primary data is gathered directly by the researcher with a
specific purpose in mind. Secondary data is what past researchers already have
gathered for their own various purposes.
In my thesis period I collect the data for preparing report thorough survey with
predesigned 31 questionnaire, documentation, archival records, interviews, direct
observations, participant observations and physical artificial facts.So I have collect data
from both primary & secondary sources. The interview is my primary data and the
documentation is my secondary data.
1).Target population:For conducting the research my target population are the 31 activist
customers of AIBL Badargonj branch.
(2).Sampling Frame:I have taken the number of elements as a sampling frame such as
customers officers & pion of bank.
sampling approach, to sample with or without replacement, and to use non -probability or
probability sampling.
For conducting the research about How public relation adds value to banking industry in
Bangladesh: A case study on AIBL on Badargonj branch I collect data from then
31activist customers of AIBL. I have collected data from 21 activist clients,02 pion, & 08
officers of AIBL. So my sample size is 31.
Employee 10 31
Customer 21
Finally I execute the sampling process by following above mentioned sampling procedure.
A case study should start with a general analytical strategy that provides the basis for
what to analyze and why. There are three different general analytical methods: Relying
on theoretical propositions, thinking about rival explanations, or developing a case
description. Yin (2003) says that without a general analytic strategy, a case study
analysis will be difficult to carry out.
According to Yin (2003) the first strategy, relying on theoretical propositions, is
the most preferred. It means that you are following the theoretical propositions that
led to your case study. The original objectives and design of the case study
presumably were based on such propositions, which in return reflected a set of research
questions, review of the literature, and new hypotheses or propositions. Thinking about
rival explanations triesto define and test rival explanations; this can also be related to the
first strategy. The final strategy is developing a case description; this is according to
Yin the least preferred, but it can be used when you have problems making either of
the other approaches work.
In this research I have used the method of relying g on theoretical propositions.
The research questions are developed and built on the basis of previous studies,
and the findings are compared to the previous research conclusion. I started to
analyze the collected data using within-case analysis, comparing existing theories to
our empirical findings
Reliability
Reliability is concerned with how reliable and accurate the research methods and
techniques for collecting data are. The reliability is a way of measuring how well a
method provides a researcher with the same results, if the method were to be
repeated under the same circumstances. If a method is not reliable, it also lacks
validity, but high reliability does not automatically mean high validity. It is possible
to use a method that would provide the researcher with the exact same results under
different occasions, without actually measuring what was intended to measure ( Yin,
2003). According to Denscombe ( 2003) the meaning of reliability is whether research
instruments are neutral, and if doing a similar study, same results will be achieved. I
have tried to be as objective as possible when handling and evaluating the collected data. A
digital-recorder was used during the telephone interviews. By using a digital-recorder
other s can review the interview answers, and we can also double-check the material
afterwards. I also tried to avoid biasing the respondents answers by asking leading
questions.
Validity
The meaning of validity is whether your methods, approaches and techniques
actually measure and relate to the problem that has been explored (Blaxter et.al.
2001) Validityis defined as an instruments ability to measure exactly what it is supposed to
measure (Eriksson & Wiedesheim-Paul, 2001). There are according to Yin (2003)
three for ms of validity, construct-, internal-, and external validity. When establishing
construct validity the researcher makes sure that the correct operational measures are
utilized for the concepts being studied, and that objective judgment is used to collect
data. Internal validity is only of relevance if conducting an explanatory study, and
since we are not conducting an explanatory study this is of no relevance. Finally,
external validity refers to establishing of the domain to which the findings to a study
can be generalized. Since our sample is small, and the study qualitative, we are not aiming to
generalize (Yin, 2003).
Two or more methods are used in order to complement each other. Combined they can
produce differing but supporting ways of collecting data with increased validity as a
result (Denscombe, 2003) . By using interviews and documentation, the construct validity
of this study was increased. To further increase the validity, a simplified outline of
the interview guide was sent to the respondents in advance. This gave our respondents
the possibility to prepare for the S interview and to obtain the correct information. After
the interviews were documented, they were sent to the respondents for corrective reading.
According to Denscombe (2003) direct contact at the interview enables that data can
be checked f or accuracy and relevance, as it is collected. When interviewing by
telephone we were not able to see the facial reactions of the respondents, but were are
able to get back to any issues and ask them directly if there was anything left unclear.
Chapter-5:Highlights
5 Findings &Data Analysis
5.4.0 Findings
5.7.0 Analysis
5.1.0 Data Sources: In order to meet the data requirement and collect the above
mentioned information following sources has been used:
a. Primary Data Sources: Primary data has been collected from the individual account holder
by questionnaire survey, Interview from Banks Manager & officers personal observation of
banking activities regarding PR. Also oral conversation has been done with different customers of
the bank.
b. Secondary Data Sources:Important sources of secondary data for conducting this research
were:
5.3 Analyzing the data: After processing the data, analyze it according to requirement of
the topic.
5.4.0 Findings:
During my thesis period I observed, found, evaluate & seen that among the various PR
tools such as annual report, speeches, sponsorship on various events, press release etc.
AIBL practices some specific PR tools that is give sponsor on various events, greeting to
customers & public through giving Eid card, distributing calendars at the beginning of the
new year, arranging various ceremony on bank & social event such as bank anniversary,
observe Iftar Mahfil etc. inviting the customers & public very cordially. I found the
following things.
Majority of the respondent mentioned that they dont know about the sponsorship
program which is given by AIBL.
THE number customers say about help desk.All the respondents are satisfied about the
safety, security, reliability of bank & empathy of employee.
The number of respondents is not fully satisfied with the existing environment of bank.
All the respondents are satisfied about the safety, security, reliability of bank &
empathy of employee.
The number of respondents is not fully satisfied with the existing environment of bank.
Now I can show the PR tools used by AIBL in the year 2012 to 2015 by the following
table & column..
(01-01-2015 to 31-12-2015)
3. Arranging ceremony 03 05 04 05
4. sponsorship 02 04 04 05
5. Arranging seminar 01 0 02 01
7. Publications 06 07 09 13
8. Publicity in media 06 07 10 14
Position of AIBL
Initiative
AIBL is somewhere between proactive and reactive with more emphasis on pro-activity in
their PR activities. Therefore AIBL can be placed in the middle of the scale
between proactive and reactive a little closer to the proactive side.
Image
At AIBL the PR activities are used both to build an image of the organization
and to inform and educate about products and services. Since thefocus today is to
inform and educate about the genuine knowledge within the bank, AIBL can be
placed at the reality side in the image category.
Interest
When examining AIBLs main interest as public or client focused, it can be seen
that both existing customers and the general publics with future potential customers
are in focus. The main emphasize is on existing customers, and therefore AIBL
can be seen with a slightly stronger focus on the clients than the publics in the interest
category.
When plotting the characteristics of AIBL into the three dimensional cube ( figure
5.1), it can be observed that that the nearest role in the framework is role number
six, the relationship management role. The publics support is vital for the organization
in its long-term objectives. Emphasize is on mutual trust, cooperation and whenever
possible, a win-win situation between the client-organization and the customer. This
matches to a great extent the objectives and way of working at AIBL.
When roles, functions and tools of AIBL are put into Huttons hierarchy of PR
(figure 5.2 on next page) the following can be ob served as an overview of the
organization to distinguish different characteristics. Issues concerning AIBL are
highlighted, italic and underlined in the figure
Media relations
AIBL keep good relation with regional newspaper namley Juger Alo, national
newspaper, electronic media for protecting bank image.
Employee relations
AIBL also keep good relation with employee for dealing good with customers.
Financial relations
AIBL keep good relation various financial relation for maintaining banking activities.
Corporate relations
AIBL also keep good relation with various prominent institutions.
Public affairs
AIBL keep good relation with various public such as VIP, business man, professional etc.
When observing the relationships of AIBL it can be seen that the most important relation
is the one between AIBL and their customers. This category can be found in media
relations, financial relations and corporate relations. Secondly by priority, AIBL place
media relations. This is not a goal in itself; instead it is a medium to reach their
customer s and stakeholder s. Employee relations are also of high importance within
AIBL where it is used to stimulate and to motivate employees. It can be seen that
AIBL identifies the same relation categories as described in theory.
events help bank to inform to customers about various product & services properly and
build long-term relation.
The study used survey to examine the various significant public relation dimensions and
examine the public relation practices of AIBL, provides the following results in number of
respondents response:
For the above statement 08 respondents responded strongly Agree, 12 Agree, 0 Neutral
& 0Strongly disagree. It shows that majority of the respondents think that AIBL able to
built relation with customers effectively.
(2).Sometimes AIBL arranges seminar on a specific topic & invite you cordially.
(4). AIBL publishes Annual reports & use good quality papers & print devices.
(5).A number of events are organized & give sponsorship for informing about AIBL.
For the above statement 18 respondents responded Strongly Agree, 02 Agree 02Neutral
0 Disagree & 0 Strongly disagree. It shows that majority of the respondents think that
responsiveness of AIBL is enough.
Neutral 0 Disagree & 0 strongly disagree. It shows that majority of the respondents have
responded that AIBL show high empathy to customers.
(10). AIBL gives proper assurance about safety & security of your deposit.
(12) AIBL is pioneer in case of launching new product & service (various scheme)
For the above statement 07 respondents responded Strongly Agree , 02 Agree, 0 Neutral,
0 Disagree, & 0 strongly disagree. It shows that majority of the respondents are strongly
agree with this statement.
(2).Sometimes AIBL arranges seminar on a specific topic & invite you cordially.
(4).AIBL publishes Annual reports & use good quality papers & print devices.
(5).A number of events are organized & give sponsorship for informing about AIBL.
For the above statement 06 respondents responded Strongly Agree, 03 Agree 0Neutral
0 Disagree & 0 Strongly disagree. It shows that majority of the respondents think that
responsiveness of AIBL is enough.
10). AIBL gives proper assurance about safety & security of your deposit.
(12) AIBL is pioneer in case of launching new product & service (various scheme)
5.8.0Analysis:
5.8.1 Table & Chart for showing Results of both customers & employees responses
I can show the respondents (Customers & Employees) responded by the following table as
a Percentage basis.
Comment: From the above table I can say that there is a great difference between the
opinion of customers& employees about whether AIBL able to effectively build relation
with customers or not. So bank should take effective steps to reduce this gap.
100
77
80 65
60
36
40 23
20 9
0 0 0 0 0
0
Strongly Agree Neutral Disagree Strongly
Agree Customers Employees Disagree
Graph: 5.1 Results of both customers & employees responses of question no.-1
Question No.2Sometimes AIBL arranges seminar on a specific topic & invite you
cordially.
Comment: From the above table I can say that there is a great difference between the
opinion of customers & employees response about whether AIBL able to arranges
seminar on a specific topic & invite customers cordially or not. So bank should take
effective steps to reduce this gap.
60 55
50 44
40
30 22 23 22
18
20 12
10 4
0 0
0
Strongly Agree Agree neutral Disagree Strongly
Disagree
Customers Employees
Graph: 5.2 Results of both customers & employees responses of question no.-2
Comment: From the above table I can say that there is a great difference between the
opinion of customers & employees response about how frequently AIBL arranges
various events? So bank should take effective steps to reduce this gap.
70
60 12
50
40 Employe
30 es
22 44 54
20 22 0
10 19
14
9
0 4
Strongly Agree Neutral Disagree Strongly
Agree Disagree
Question No.4AIBL publishes Annual reports & use good quality papers & print devices.
80 77 77
70
60
50
40
30
23
20 14
10 4 5
0 0 0 0 0
Strongly Agree Neutral Disagree Strongly
Agree Disagree
Customers
Employees
Comment: From the above table I can say that there is a great difference between the
opinion of customers & employees response aboutAIBL publishes Annual reports & use
good quality papers & print devices. So bank should take effective steps to reduce this
gap. I can show the respondents responded by the following Venn diagram
Question No (5).A number of events are organized & give sponsorship for informing
about AIBL
Comment: From the above table I can say that there is a great difference between the
opinion of customers& employees response aboutA number of events are organized &
give sponsorship for informing about AIBL. So bank should take effective steps to reduce
this gap.I can show the respondents responded by the following Venn diagram
100
50 55
22 11 12
41 0
9 28 22 Customers
00
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Customers Employees
Graph: 5.2 Results of both customers & employees responses of question no.-5
Question No.6 AIBL develops community relation which helps protect bank image.
Comment: From the above table I can say that there is a great difference between the
opinion of customers & employees response aboutAIBL develops community relation
which helps protect bank image.So bank should take effective steps to reduce this gap.
I can show the respondents responded by the following Venn diagram.
60 55
50
50 45
41
40
30
20
9
10 0 0 0 0 0 0 0
0
Strongly Agree Neutral Disagree Strongly
Agree Customers Employees Disagree
Customers-22 82% 9% 9% 0% 0%
Comment: From the above table I can say that there is a great difference between the
customers & employee response aboutResponsiveness of AIBL is enough for getting
service. So bank should take effective steps to reduce this gap.
90 82
80 67
70
60
50
40 33
30
20 9 9
10 0 0 0 0 0
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Customers
Employees
Comment: From the above table I can say that there is a great difference between the
opinion of customers & employees response aboutReliability of AIBL is consistent &
strength than others.So bank should take effective steps to reduce this gap.
150
55
100
68 45
50
32
0 00 00 00
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Customers Employees
Comment: From the above table I can say that there is a greater difference between the
customers & employee response aboutOfficers of AIBL show high empathy to customers.
So bank should take effective steps to reduce this gap. I can show the respondents responded
by the following Venn diagram.
70 60
60 55
50
40 32
30 22 23
20
8
10 0 0 0 0
0
Strongly Agree Neutral Disagree Strongly
Agree Disagree
Customers Employees
Question No. 10- AIBL gives proper assurance about safety & security of your deposit.
Comment: From the above table I can say that there is a great difference between the
opinion of customers & employees response aboutOfficers of AIBL show high empathy
to customers. So bank should take effective steps to reduce this gap.
140
120
100 55
80
60
40 45
73
20
23
0 0
4 0 0
Strongly Agree Neutral Disagree Strongly
Agree Disagree
Customers Employees
Comment: From the above table I can say that there is a great difference between the
opinion of customers & employees response aboutthe existing environment of AIBL is
attractive. So bank should take effective steps to reduce this gap.
60 55
50
50 45
40 Strongly Agree
34
Agree
30
21 Neutral
20
Disagree
10 5
Strongly Disagree
0
Customers Employees
Question No. 12 AIBL is pioneer in case of launching new product & service (various
scheme)
Comment: From the above table I can say that there is a great difference between the
opinion of customers & employees response aboutAIBL is pioneer in case of launching
new product & service (various scheme). So bank should take effective steps to reduce this
gap. We can show the respondents responded by the following Venn diagram
Comment: From the above table we can say that there is a greater difference between the
customers & employee response aboutAIBL is pioneer in case of launching new product
& service (various scheme). So bank should take effective steps to reduce this gap. I can
show the respondents responded by the following Venn diagram.
Comment: From the above table & diagram I can say that the growth sales of the various
product & schemes are increasing.
(01-07-2015 to 31-12-2015)
Profit ( In Taka)
Comment: From the above table & diagram I can say that the growth of profit of AIBL is
increasing rapidly.
Comment: From the above table & diagram I can say that the growth sales of the various
product & schemes are increases.
5.10 Relation Between the practices of PR tools & sales & profit in bank:
From the table 5.2 ontotal spending in PR activities In Badargonj branch& Graph; 5.15 on
profit in total number in various years, in this chapter, I can say that the relation between
PR tools & profit and sales is positive. So bank should understand the importance of
practicing PR tools, should give separate budget & department of PR.
Chapter-06 highlights
6.1.0 Recommendations
6.2.0. Conclusion
6.1.0 Recommendations:
After a great case study about How Public Relation Adds value in Banking industry: A
case study on AIBL in Badargonj Branch, I have found several things & events that
affect the banking activities both directly & indirectly. During my thesis period I observed
& noticed some specific factors that affect public relation adversely. So management may
be followed the following issues for building long- term sustainable relationship with
clients, employee, media, public affairs, corporate relation etc. These are
1. Change the attitude of management: Management should change the attitude about
unwillingness to spend money at any bank marketing activities. It is true that, all effort
will be inactive if money is not available. Money is the stimulus of creating favorable
image, Persuade, & convincing to someone about something.
2. Public relation activities branch & Regional basis:Bank should perform public
relation activities as branch & regional basis because region & local people encouraged
with banking activities. If they are motivated by the bank, they go to the bank again &
again. That is why bank arrange various public relation activities.
4. Public relation desk/ department:In recent years, public relation is the prime &
paramount promotional activities that is very much cost sensitive. That means by the PR
activities, organization can take a distinct position toward the society. So AIBL should
keep separate PR desk/ department.
5. Fast & consistent service:Service is one of the most important elements for
satisfaction of banking organization. Prompt service should be given to the customers. In
this regard bank should arrange job rotation regularly for employees to improve the skills
in different types of service. This will increase the efficiency of the service. So AIBL
should provide fast, reliable & consistent service.
6. Help Desk: Clients like these types of Banks who are very helpful. So, AIBL
Badargonj Branch enriches their help desk by lot of information, documents.
8. Increase employee relation: Employees are the main component of providing service
to the customers. If they are not satisfied to the bank, it will affect the banking activities.
So bank should improve employee relation. Bank should be thinking employee as a
partner.
9. Increase media relation: At present media play a vital role in focusing the
organization positively as well as scandal. So bank should keep good relation to its various
media such as electronic, print, internet media.
10. Public affairs:Bank should keep good relation with various public such as media
public, financial public, and corporate public.
11. Increase empathy of officers:Customers of bank go to the bank again & again if
employee of bank shows high empathy at least minimum depending on the situation. So
bank should give attention to increase empathy of officers.
15. Arrange various events & give sponsorship:The major public relation tools are
various events & sponsorship which help to bank creating positive image. So bank should
arrange various events & give sponsorship at various events for taking a distinct position
to the consumers mind.
16. Proper safety & security:Bank should give proper safety & security of deposit of
customers.
17. Thinking PR as a building long-term relation: At present public relation play a vital
role in banking industry for creating positive image bank. It helps to build long- term
sustainable relation with customers. So bank should think PR as a tool for building
relation.
Try to create a good image to customers through different promotional tools for protecting
bank image & avoided negatives image. Finally bank considers corporate reputation and
trust as vital for the organizations capability to sell financial services, and therefore
manage this with high priority.
6.2.0 Conclusion
Al-arafahIslami Bank Limited is one of the leading Islamic shariah based commercial
bank in Bangladesh.AIBL is committed to provide excellent service to its valued
customers. The management of AIBL always gives special efforts to build & maintain
sustainable relation to its various customers, public, media for protecting bank image and
uphold the interest and trust of customers. Bank tries to best to keep its commitment
through practicing PR activities. Recent research shows that the banking industry has been
caught in a negative trend regarding reputation which could have been avoided through PR
activities. It is also a set of communications techniques which are designed to create and
maintain favorable relations between an organization and its publics.Findings show that
banks do not define their communication activities as PR, but still utilize it to a high
degree. Themain objective of bank is building and maintaining of relationships with the
publics. Banks utilize many different tools to reach PR objectives; many of these are
used at the local branch level which is not adequate in highly banking environment.
The overall customer service (i,e) Safety, security, reliability, empathy & overall
performance of AIBL are better than most other bank. So bank should give high
concentrate in practicing PR activities because it is most effective way to build long-term
sustainable relation to its customers & public. It is also cost effective & highly credible.
Bank should keep separate PR department.
7. List of References
Book & Articles References
1.Ball, D. Coelho, P.S, Machs, A. (2004). The role of communication and trust in
explaining customer loyalty: An extension to the ECSI model. European Journal of
Marketing, Vol 38(9/10), pp. 1272-1293.
2. Barnes, B.E. Schultz, D.E. (1999). Strategic Brand Communication Campaigns. Illinois:
NTC Business Books.
3. Beavers-Moss, D. (2001). The Credibility Enhancer. Bank Marketing, May 2001, pp.
2731.
4. Blaxter, L. Hughes, C. Tight, M. (2001). How to research 2nd ed. London: Open
University Press.
5. Broom, G.M. Casey, S. Ritchey, J. (1997). Toward a Concept and Theory of
Organization-Public Relationships. Journal of Public Relations Research, 9(2), pp. 83-98.
6. Broom, G.M. Cox, M.S. Krueger, E.A. Liebler, C. M. (1989). The Gap Between
Professional and Research Agendas in Public Relations Journals. Public Relations Research
Annual, Vol 1, pp. 141-155.
9.C. Gringos., Service Management and Marketing Managing the Moments of Truth in
Service Competition, Lexington Books, USA, 1990.
10.David S. Moore and George P. McCabe (February 2005). "Introduction to the practice
of statistics" (5th edition). W.H. Freeman & Company. ISBN 0-7167-6282-X.
13. Kotler, P. and Armstrong, G. (2008): Principles of Marketing. New Jersey, USA:
Pearson Education, Inc.
14. Kotler, P. and Keller, K. L. (2009): Marketing Management. New Jersey, USA:
Pearson Education, Inc.
15. Robert Groves, et alia. Survey methodology (2010) Second edition of the (2004) first
edition ISBN 0-471-48348-6.
16.Denscombe, M. (2003). The Good Research Guide 2nd ed. Philadelphia: Open
University Press.
17. Dolphin, R.R. (2004). Cor porate reputation a value creating strategy. Corporate
Governance, Vol 4( 3), pp. 77-92.
18. Dolphin, R.R. (2000). Is corporate communications a strategic function?
Management Decision, 38(2), pp. 99-106.
19.Eriksson, L.T. Wiedersheim-Paul, F. (2001). Att utreda forska och rapportera.
Malm: Liber Ekonomi.
20. Gomm, R. Hammer lsey, M. Foster , P. (2000). Case Study Method. London: Sage
Publications Ltd.
21. Gummesson, E. (1991). Qualitative Methods in Management Research. London:
Sage Publications Ltd.
22. Hon, L.C. (1998). Demonstrating Effectiveness in Public Relations:
Goals,Objectives, and Evaluation. Journal of Public Relations Research. Vol 10, No. 2, pp.
103-135.
23. Hon, L.C. (1997). What have you done for me lately? Exploring eff ectiveness
in public relations. Journal of Public Relations Research. 9(1), pp. 1-30.
Document References
Web References
1. www.AIBLbd.com
3. www.weikipedia.org.
4. www. economicarticle.org
5. www.businesswire.com
Appendix
i) Survey Questionnaire
Public Relation (PR) is an important component of promotion mix. I can define the Public
relation by the following-PR means building long-term sustainable relation to its various
customers, employees, bankers, public, opinion leader as well as media for promoting
products & services or protecting bank image. Bank can do it through maintaining good
relation with press, giving speeches about social awareness, arranging seminars & giving
donation at crisis moment & sponsorship to various events. In the competitive banking
environment it is very much important for creating loyal customers.
Dear Sir
Thanked by,
Md. Abu jaid
ID No. 021308040
Dept. of Marketing
Begum Rokeya University,Badargonj.
Students others
Family Friend
Banker (Others)
MTDR Other
Regularly Irregularly
Occasionlly Sometimes
7) Sometimes AIBL arranges seminar on a specific topic & invite you cordially.
9) AIBL publishes Annual reports & use good quality papers & print devices.
10) A number of events are organized & give sponsorship for informing about AIBL.
11) AIBL develops community relation which helps protect bank image.
16) AIBL gives proper assurance about safety & security of your deposit.
20) AIBL is pioneer in case of launching new product & service (various scheme)
Thanks
To calculate this survey result I can use a formula to identify the percentage
ofRespondents Responded Required Option for each question that compares the customers
and employees answer.
Calculation Method
% = 100
Total number of Respondent (Customers/Employees)
-Here, each question required options 5 (a) Strongly Agree b) Agree c) Neither Agree nor