Chapter One: Introduction

1.1 Background of the report

PBL is one of the reputed commercial banks in Bangladesh. It wants to

establish, maintain, and conduct all types of banking, investments and
businesses in Bangladesh and abroad with superiorservice. This report is
originated from the course requirement of conducting an internship study in
BBAprogram, of University of Asia Pacific, my respected supervisor Dr.
MahbubulHaque, Associate Professor, University of Asia Pacific assigned me to
make a report on General Banking Activities of Prime Bank Limited. I
prepared my report under direct supervision of my supervisor Dr.
MahbubulHaque, and tried my level best to present my experience in the report.

1.2 Objective of the report

The objectives of this report are given below:

To know the overall activities of the General Banking.

To identify the problems of general banking activities of PBL.

To know the present situation & growth of the banking industry.

To analyze Porters 5 forces framework on banking industry.

To analyze Prime Banks own product positions through BCG growth

share Matrix.

To study the SWOT analysis of Prime Bank Limited.

1
1.3 Scope of the report:

During my internship, I worked in various departments of PBL, at Asad Gate

branch. I have had an opportunity to gather experience by working in the
different desks of the branch.

1.4 Methodology:
While preparing the report, I have taken information from the following
sources:
Primary Sources:
Observation of banking activities.
Conversation with the officers of different sections of Prime Bank
Limited, Asad Gate Branch.
Personal experienced gained by visiting different desks, and by asking
customers opinions.
Secondary Sources:
Daily note maintained by me (containing my activities in Prime Bank
Ltd)
Online sources and Website of Prime Bank Limited,
Annual Report of the bank,

1.5 Limitations of the study

Some of the limitations faced in preparing this report are:
It was not so easy to collect the information from various personnel. The
officers were much strict about their information protection policy.
There were some difficulties in understanding some activities due to not
being relevant to the theoretical knowledge.
Lack of time.

2
1.6 Structure of the report

The report has two main parts:

Chapter One: This is Basically Introductory part, the objective, scope,

limitations, and structure of the report has been highlighted. And also
background of the study, and methodologies; sources and the way of data
analysis hasbeen highlighted.

Chapter Two: This part will focus on overview of the banking industry, brief
introduction of banking industry, and analysis of Porters five forces framework
on the banking industry. Chapter three contains introduction of Prime Bank
Limited, BCG growth share matrix, SWOT analysis, and Ratio analysis.
Chapter four contains brief descriptions about different sections of general
banking, myresponsibilities in general banking, and findings. Chapter
fiveconcludes with some recommendations that should be taken into
consideration by the bank.

3
 Chapter Two:
Industry Overview and Its Attractiveness

2.1Overview of Banking Industry In Bangladesh:

Since independence, banking industry in Bangladesh started its journey with 6
nationalized commercialized banks, 2 State owned specialized banks and 3
Foreign Banks. In the 1980's banking industry achieved significant expansion
with the entrance of private banks. Now, banks in Bangladesh are primarily of
two types:

Scheduled Banks: The banks which get license to operate under Bank
Company Act, 1991 (Amended in 2003) are termed as Scheduled Banks.
Non-Scheduled Banks: The banks which are established for special and
definite objective and operate under the acts that are enacted for meeting
up those objectives, are termed as Non-Scheduled Banks.

There are 56 scheduled banks in Bangladesh that operate under full control and
supervision of Bangladesh Bank which is empowered to do so through
Bangladesh Bank Order, 1972 and Bank Company Act, 1991. Scheduled Banks
are classified into following types:

State Owned Commercial Banks (SOCBs): There are 6 SOCBs which

are fully or majorly owned by the Government of Bangladesh.

Specialized Banks (SDBs): 7 specialized banks are now operating

which were established for specific objectives like agricultural or
industrial development. These banks are also fully or majorly owned by
the Government of Bangladesh.
Private Commercial Banks (PCBs): There are 32 private commercial
banks which are majorly owned by the private entities.

4
 Foreign Commercial Banks (FCBs): 9 FCBs are operating in
Bangladesh as the branches of the banks which are incorporated in
abroad.

Bangladesh Bank (BB) has been working as the central bank since the
countrys independence. The BB has a governing body comprising of nine
members with the Governor as its chief. The number of banks in all now
stands at 62 in Bangladesh. Out of the 62 banks, 6 are Nationalized
Commercial Banks (NCBs), 32 local private commercial banks, 9 foreign
banks, 7 are Development Financial Institutions (DFIs) and the rest of 8 are
Islamic banks. This is shown in figure 2.1. Sonali Bank is the largest among
the NCBs while Pubali is leading in the private ones. Among the 12 foreign
banks, Standard Chartered has become the largest in the country.

Banking Industry of Bangladesh

7 6
Governement Bank
9 Private Bank
Islamic Bank
8 Foreign Commercial Bank
32
Development Bank

Figure 2.1: Banking Industry of Bangladesh

2.2. Porters 5 Forces Industry Framework on Banking Industry

Porters five forces model were originally identified and developed by Michael
E. Porter in 1979. It is a model of analysis that helps to explain why different
industries are able to sustain different levels of profitability. Michael Porter
has identified five forces that are widely used to analyze the structure of any
industry. These are presented as follows:

5
 Threat of New
Entrant: High

Bargaining Power Rivalry Among Bargaining Power

of Buyers: High Competing Firm: High of Suppliers: Low

Threat of Substitute
Products: Moderate

Figure 2.2: Porters Five Forces Industry Framework on the

Competiveness of the Banking Industry

2.2.1 Threat of New Entrants:

At present there are nearly 62 banks in Bangladesh. Banks are frequently trying
to bring new products, lucrative services to the customers. Recently few new
banks have started their operation,Like,Meghna Bank, Modhumoti Bank,
etc.This new entrants will increase the competition more.Thus ,threat of new
entrants is high in the banking industry.

2.2.2 Bargaining power of the Supplier:

Suppliers bargaining power is low in the industry. Bank depositors are the main
suppliers of any bank. It can be said that banks does banking by the money of
the depositors.As the Bangladesh bank usually takes decisions associated with
deposit interest rate and banks have to follow that rules and regulations. Thus, it
can be concluded that the bargaining power of suppliers are low.

6
2.2.3 Bargaining Power of Customers:

Customers are those people, who lends money from banks, and utilize the
services of the bank. Customers have no. of alternatives. For instance, they can
compare the interest rate and go for other banks that offering low interest rate
for a certain period. Thus, switching cost is lowIn addition,they are free to select
any banks services. Therefore, it can be concluded thatbargaining power of
buyers or customers is high.

2.2.4 Threat of Substitute Products:

In Porter's model, substitute products refer to products in other industry that

satisfy the same need of customers offered by PBL. Main requirement of saving
money for the people is to keep it grow for future need and that is why they are
more attracted towards banks. Moreover, non-financial institutions i.e. Lanka
Bangla Finance, Union Capital Limited, etc. can also be substitutes of banking
industry. This indicates a moderate threat of substitute products.

2.2.5Rivalry Among Competing Firms:

The increase in the number of banks within the industry has been rapid. There is
now intense competition for the existing banks to createand maintain a good
market share. Even sometimes, consumer switch from one bank to another, if
there is a widespread in the interest rate. It can therefore, be said that rivalry
among existing firms is high.

7
 Chapter Three:
An Overview of Prime Bank Limited

3.1History of PBL

As a fully licensed commercial bank, Prime Bank was created and started its
journey on17th April 1995.During this period, it made significant progress, and
has been graded as a top class bank in the country through internationally
accepted CAMELS ratings. It offered all kinds of Commercial Corporate and
Personal Banking services covering all segments of society within the
framework of Banking Company Act and rules and regulations laid down by our
central bank. Its diversified product portfolio includes Corporate Banking,
Retail Banking and Consumer Banking right from industry to agriculture, and
real state to software.

3.2 Products and Services of PBL:

Prime Bank Limited offers various kinds of deposit products and loan schemes
to its customers, which are mainly classified as follows:

Deposit products to generate fund

Lending products for financial gains
Money transmission products
International business products
NRB Banking Products
Special fee earning service.

Under this classification, various kinds of products of PBL, such as; products of
Deposit Scheme, products of General Loan Scheme, Deposit Products, Special

8
 Fee Earning Products, Loan under SME Products, and other products are shown
in Table 3.1, 3.2, 3.3, 3.4, 3.5, and 3.6 respectively.

Table 3.1: Products of Deposit Scheme

Fixed Deposit Scheme Lakhopati Deposit Scheme

Contributory Saving Scheme Savings Deposit Account

Double Benefit Deposit Scheme Foreign Currency Deposit Account

Special Deposit Scheme House Building Deposit Scheme

Education Savings Scheme Non Resident Foreign Currency Deposit Account

Table 3.2: Products of General Loan Scheme

Consumer Credit Scheme Savings Deposit Account

Lease Finance Scheme Computer Software Financing

Hire Purchase Prime Bank master Card Credit Card

Small and Medium Enterprises Credit Scheme Working Capital Finance

Financing Schemes for Contractors Import Financing

Prime Bank Monetary Scheme Export Financing

9
 Table 3.3: Deposit ProductsTable 3. 4: Special Fee Earning

Products

-Current Deposit (i) Locker Service

-Savings Deposit (ii) Prize Bond

-Short term deposit (iii) SMS Banking

-My First Account (iv) Phone Banking

-Prime Payroll-Account

Table 3.5: Products under SMETable 3.6: Other Products

Loan

(a) Online Banking Service

(a) Small business loan (b) SWIFT Service
(c) Letter of Credit Delivery
(b) Consumer finance scheme Service

(c) Lease financing

(d) Personal loan

(e) House repairing & renovation loan

(f) Women Entrepreneur

3.3 BCGs Growth Share Matrix

The Boston Consulting Group (BCG) matrix assumes that a companys business
can be divided into four categories based on combinations of market growth and
relative market share compared to its largest competitor.It is a comparative
analysis of business potential and the evaluation of environment. BCG matrix
has four cells, with the horizontal axis representing relative market share and the
vertical axis denoting market growth rate. The four cells of this matrix have

10
been called as stars, cash cows, question marks and dogs. Each of these cells
represents a particular type of business. The BCG matrix is applied in case of
PBLs product portfolio as shown in Figure 3.1.

Personal loan& Lease

Market Growth Rate (Cash Usage)

Retail SOD finance

High

?
Star
Question Mark
SME loan FDR, DPS
Low

$
Cash Cow Dog
High Low
Relative Market Share (Cash Generation)

Figure 3.1: BCG Matrix

11
 Stars
Stars may generate cash but because of fast growing market, stars require huge
investments to maintain their lead. In Prime bank Ltd there are various types of
loans which are very popular. The most popular loan of this bank is Personal
loan & Retail SOD. There are many large as well as loyal borrowers who
usually take such type of loans for their business purposes. Prime bank generally
gives them first priority and also invests huge amount of money for it.

Cash cows
Cash cows require small investment and generate cash that can be utilized for
investment in other business units. Small & medium enterprise (SME) is the
most popular product of Prime Bank ltd. Recently, PBL has introduced SME
loan, such as, loan for women entrepreneurs, agro loan, etc. that fall into this
category.

Question marks
Question marks represent business units having low relative market share and
located in a high growth industry. They require huge amount of cash to maintain
and gain market share. Lease finance is becoming popular to the client although
this product has lower share in the loan sanction of the banking industry.

Dogs
Dogs represent businesses having weak market shares in low-growth markets.
They neither generate cash nor require huge amount of cash. Prime banks FDR
and DPS scheme is in Dog stage of this matrix.PBL has high cash liquidity, so,
bank is now focusing on giving loan, like SME loan to its customers, instead of
deposit. So, both FDR and DPS schemes interest rate has reduced. At present,
only Lakhopati Deposit Scheme is active.

12
3.4SWOT Analysis
SWOT analysis enables an organization to have a comprehensive insight about
its current position in the industry compared to the competitors. Here, the
internal strengths and weaknesses of (PBL) as well as its external opportunities
and threats are shown in Table 3.7.

Table 3.7: SWOT Analysis of PBL

Strengths: Weakness:

Good Customer Service Technology

Efficient Administration Remuneration
Liquidity Position Training
Flexible Work Environment Low deposit interest rate
Brand Name

Opportunities: Threats:

Branch Expansion Level of Competition

Training Facility Technological Advancement
Banking Software Political Unrest
Dissatisfied Customers of other New Entrants
Banks Inflation

These are explained below:

3.5.1 Strengths:

Good Customer Service:

13
Prime Bank Ltd. has a very good relationship with its customers. One of the
majorgoals of the bank is to build long term relationship with the customer and
to create value for them. To maintain this relationship, PBL sometimes waive
high charge for those valued clients who are linked with the bank for a long
period of time.

Efficient Administration:
Prime Bank Limited has an efficient administration. The work is done in a
timely and systematic manner for which the efficient administration is
responsible. There is close relationship between the employees. Overall, there is
a good balance between the administration and the employees.

Flexible work environment:

The work environment of PBL is very much flexible. Management believes in

the comfort of the employees. The Bank feels that, if the employee are
comfortable in the work place, his/her output will be increased.

Brand Name:
Prime Bank has earned a reputation in the market for extending quality services
to its Customers. It has earned a strong brand name in banking in a very short
span of time.

3.5.2 Weaknesses:

Lack of Advanced Technology:

One of the major weaknesses of Prime Bank Ltd. is lack of advanced
technology. With the change of time, technological advancement is essential to
survive in the competition. Hence, PBL is lagging far behind in this area. PBL

14
was the pioneer in Online Banking but the online facility which the bank is
providing currently is not up to the standard.

Poor Remuneration:
The pay scale of employees in PBL is not competitive compared to other private
banks of the country. The employees of PBL get compensation of around 60%
of what other private banks. This creates dissatisfaction among the employees,
and rise in employee turnover rate.

Low deposit interest rate:

At present,the interest rate of FDR, and other deposits scheme in PBL is lower
than that of its competitors. PBL has high cash liquidity,and has acquired high
amount of deposit till now. The high amount of deposit bears high cost. To
reduce this cost, most of the deposit schemes have been discontinued, and
interest rate has dropped. This has a negative effect on clients who expect a
broad range of deposit services from the bank.

3.5.3 Opportunities:

Branch Expansion:

Prime Bank Limited is growing quickly all over the country. Besides expanding
in the urban areas, it has prospects to open more branches in the remote areas, as
well as reaching more people through better service.

Training Facility:

Prime Bank Training Institute (PBTI) is supporting the bank by offering in

house training courses, workshops and seminars. As the bank has its own
training institute to enhance the capability of human resources, it can use this

15
opportunity to train their employees in specific areas and create specialized and
expert people for the bank.

Banking Software:

Quality service providing is a major goal of Prime bank limited. Though it is

still lagging behind in upgrading its software system, it has the prospect to select
high quality banking software, which will make the banking operations fast and
smooth.

3.5.4 Threats:

Level of Competition:

In recent years, the number of private bank is increasing. Thus, the level of
competition rises and creates threats for PBL.

New entrants: In the last few years, there are four new banks that have
entered into the banking industry and few are waiting in the line. It creates
great threads to the existing banks.
Inflation:
For few years the inflation rate in Bangladesh is high, that might create
economic instability which hampers the banking business.

3.5 Financial Analysis of Prime Bank Limited:

Profit after Tax, and Investment Analysis of PBL for the last four years are
given below:

Net Profit after Tax:

16
Net profit after tax stood at Tk. 2,139 million registering a negative growth of
11 percent during 2015.In the year of 2012, PBL earned high profit of TK 2,699
million, and in 2013 its profit decreased to TK 1,829 million.

Investments:
Investments of PBL increased since in the year of 2012 to 2015. PBLs
investment decreased during the year by Tk. 9,909 million and stood at Tk.
62,733 million as at 31 December 2015.

Table 3.8: Profit after Tax and Investments (Taka in millions)

Year Profit after Tax Investments

2012 2,699 45,862
2013 1,829 56,940
2014 2,393 72,642
2015 2,139 62,733

Profit after Tax (Taka in million) Investments ( Taka in

2,699 million)
2800 2,393
80 72.6
2300 2,139
1,829 62.7
56.9
1800 60
45.9
1300 40
800
20
300
-200 0
2012 2013 2014 2015
2012 2013 2014 2015

2012 2013 2014 2015 2012 2013 2014 2015

Figure 4.1: Profit after Tax & Investment Analysis

Financial Position of PBL:

Assets:

17
 Consolidated assets of the Bank stood at Tk. 253,474.40 million in 2015
as against Tk. 256,349.33 million in 2014. Total assets of PBL stood at
Tk. 252,161.23 million in 2015 from Tk. 254,912.20 million in 2014.

Deposits
In 2015, total deposits of the Bank stand at Tk. 194,825 million which
was Tk. 204,838 million in 2014.

Loans and Advances

Consolidated loans and advances of the bank stood at Tk. 154,871
million in 2015. Loans and advances of PBL was Tk. 151,865 million
during 2015.

Shareholders Equity
PBLs shareholders equity increased by 8 percent during 2015. Paid-up
capital of PBL stood at Tk. 10,293 million during 2015. The statutory
reserve increased by Tk. 550 million during the year and stood at Tk.
8,735 million. Distributable profit stood at Tk. 1,836 million during the
year. The strong growth in shareholders equity will help the bank to
expand its business

Growth of Financial PositionItems:Taka in million

Growth of
Outstanding taken in Million
Particulars PBL
2014 2015 %
Assets 254,912 252,161 4.53
Deposits 204,838 194,825 1.45
Loans & Advances 147,367 151865 (4.05)
Shareholders Equity 24461 26415 31

18
Taka in million
30 26.4
25.5 25.2 24.5
25
20.5 19.5
20
14.7 15.2
15 2014
10 2015
5

0
Assets Deposit Loans & Advances Shareholder's
Equity

Figure 4.2: Growth of Balance Sheet Items

3.6 Ratio Analysis of Prime Bank Limited

Financial Analysis can be easily understand by using Ratio Analysis.
Current ratio:Current ratio measures the ability to pay current liabilities
of an organization through its current asset. Current ratio is considered as
better when it is greater than 1. The current ratio of PBL was greater
than 1 during the year 2012 to 2015. Highest current ratio was in 2014
which was 1.17 & the lowest current ratio was in 2012 which was

Table 3.9: Current Ratio

Year Current Asset Current Ratio
Liabilities
2012 133953 131219 1.02
2013 144437 129415 1.12
2014 147341 126276 1.17
2015 140218 130576 1.07

19
 Current Ratio

1.2 1.17

1.15 1.12
2012
1.1 1.07
2013
1.05 1.02
2014
1
2015
0.95
0.9
2012 2013 2014 2015

Figure 3.4: Current Ratio

Quick ratio:The quick ratio measures a companys ability to meet its

short-term obligations with its most liquid assets. For this reason, we
exclude inventories from current assets. The higher the quick ratio, the
better the company's liquidity position. PBL quick ratio was greater than
1 during the year. It indicates the strong point of PBL to pay its current
liabilities through its most liquid asset. Quick ratio was highest in 2014
which was 1.17, and lowest in 2012 which was 1.01.

Table 3.10: Quick Ratio

Year Current Asset Inventory Current Liability Quick Ratio

2012 133953 1422 131219 1.01

2013 144437 508 129415 1.12
2014 147341 402 126276 1.17
2015 140218 502 130576 1.07

20
 Quick Ratio
1.2 1.17
1.15 1.12
1.1 1.07
1.05 1.01 Quick Ratio
1
0.95
0.9
2012 2013 2014 2015

Figure 3.5: Quick Ratio

Debt ratio: It measures the percentage of the total assets which is

provided by creditors. This ratio indicates the companys degree of
leverage. The higher the percentage of debt to total assets, the greater the
risk that the company may be unable to meet its maturing obligations.
PBL maintains almost a balance leverage and its debt ratio was very low,
around 11% during the year 2012 to 2015. It was highest in 2015
(11.70%), and lowest in 2012 (9.62%)

Table 3.11: Debt Ratio

Year Total Asset Total Equity Debt Ratio

2012 236833 214050 9.62%
2013 243869 218433 10.43%
2014 254912 227866 10.61%
: 2015 252161 222658 11.70%

21
 Debt Ratio
14.00%
12.00% 11.70%
10.00% 10.43% 10.61%
9.62%
8.00%
6.00% Debt Ratio
4.00%
2.00%
0.00%
2012 2013 2014 2015

Figure 3.6: Debt Ratio

Return on shareholder equity: High return on shareholder equity is

good for the company. In terms of shareholder equity PBL holds a worst
position. In 2015 its shareholders equity was lowest (8.41%), and in
2012 it was highest (13.53%). So PBLs return on shareholders equity
decreasing year by year which is a negative sign for PBL.

Table 3.12: Return on Shareholder Equity

Year Net Income Total Equity Return on Equity

2012 28961 214050 13.53%
2013 21821 218433 9.99%
2014 22969 227866 10.08%
2015 18726 222658 8.41%

22
 Return on Equity
15.00%
13.53%

10.00% 9.99% 10.08% 2012

8.41% 2013
5.00% 2014
2015
0.00%
2012 2013 2014 2015

Figure 3.7: Return on Equity

23
 Chapter Four:Roles & ResponsibilitiesandDiscussion aboutMy
Work Area

4.1 General Banking Department

In three months internship program I worked mainly in the general banking
section of PBL at Asad Gate branch. General Banking department performs the
majority functions of a bank. The activities of the General Banking section of
PBL are mainly divided into the following categories:

4.1.1 Account Opening Section

The relationship between banker and customer begins with the opening of an
account by the customer. In fact, fraud and forgery of all kinds start by opening
account. So, the PBL takes highest care in this regard. However, PBL opens the
following accounts for its customers.
1. Current account (CD A/C)
2. Savings account (SB A/C)
3. Short term deposit (STD A/C)
4. Fixed deposit account (FDR A/C)

4.1.2 Online Branch Banking Section

Prime Line: The bank has set up a Wide Area Network (WAN) across the
country to provide Online Branch Banking facility to its valued clients.

4.1.3 One Stop Utility Services Scheme Section

People living in the urban areas of our country lead a very busy life. Despite
this, they waste their valuable time at the counter of different banks and other

24
Institutions for payment of their monthly bills of different utility services like
Electricity, Telephone, Water, etc. Such difficulties of the urban people can be
removed by making an arrangement to collect all the bills of various utility
services at One Point.

4.1.4 Accounts Section

In banking, business transactions are done every day to deal with the depositors
money. Any improper recording of transactions will lead to the mismatch in the
debit side and credit side. To avoid these, the bank provides a separate
department whose function is to check the mistakes in passing vouchers or
wrong entries or fraud. This department is called Accounts Department.

4.1.5 Cheque Section:

Cheque book is very sensitive to the officer and handle with extra care.
Operation of this section begins at the start of the banking hour. It has been
observed that per working day, a bundle of new cheque book the desk officer
need to receive, which is to delivered from the head office. Then the no. of
cheque book needs to give entry into the register before issuing to the
customers.

4.2 Roles & Responsibilities DuringInternship:

As part of the three months internship program, I was assigned by my

organizational supervisor for doing my internship in the general banking
section of the PBL at Asad Gate branch. At the first day of my internship, I

25
was asked to introduce with all the officers and coworkers. Then first two days
I was asked to be familiar with all those official forms, different files and
register book, which are used in every day work. I were asked to help the
officers in giving forms, according to customer service, and at the end of the
day, keeping all the documents in the right files.My responsibilities are given
below:

My Responsibilities:

Communicate with the customers, and provide information as per

customers needs.
Filling up new account opening form.
Receiving customer signature in the cheque register book and matched
the signature with the cheque requisition slip then provided the cheque
book to the customer.
Giving entry of new cheque book of saving a/c, courier and mail entry in
the register book.
Collecting and delivering cheque book requisition slip
Doing voucher work per day, and then at the end of the month, entering
those voucher calculation in register book in a ledger format.
Giving phone to customers by giving information required for KYC
(Know Your Customer) update.
Filling up and handling KYC (Know Your Customer) forms by
collection all the required documents from the customers.

26
4.3 Findings:

1. Account Section:

Questionnaire:

Do you face any kind of problem in account services of Prime Bank

Limited?
Do you face any problem in account opening procedure?
What do you thing about service quality of Prime Bank Limited?
Are the officers efficient in giving quick service and solving problems of
customers?

On the basis of customers point of view, and practical experience of my 3 months

internship program, the following findings are observed:

Yes, there are some problems in Prime Bank Limited.

Sometimes it seemed to customers that charges and other fees are
very high compared to other private banks. It frequently creates
customer dissatisfaction.

Sometimes the Customer Service Officers were so busy that it

creates delay to the customer service.

General Banking Division is an efficient department. They try their

best to give quick services to their valued clients. Quality service
officers from head office sitregularly once in a month in order to
ask opinion regarding service quality.

Good cooperation exist among the work procedures and among the
employers of the bank, as a results, it is seen that, in delivering
service if one officer face problem, then another officer quickly try
to solve the problem, try to deliver prompt service.

27
 Introducer for Savings and Current Account is one of the major
requirements. PBL has started online banking, but all of its
branches are not online. On the other hand, the signature of the
customers of other branches most of the times are not scanned ,
thats why, if any customer of other branch of PBL introduces the
applicant then it becomes impossible to verify the signature.

At present, PBLs FDR and deposit schemes interest rate is very

low, compared to other private banks. As a result, most of the
customers are being dissatisfied, and thus switching to withdraw
their amount.
Most of the clients also face difficulty to fill up the A/C opening
form, since procedure is lengthy and thus, time consuming.

28
 Chapter Five:

Conclusions & Recommendations

5.1Conclusion:

It was great pleasure for me to do my Internship Program in a respected

organization like Prime Bank Ltd. Though my practical exposure in Prime Bank
Ltd. was for just twelve weeks it provides me a wide range of scope to observe
the different functions of bank through the cordial assistance of its members. I
had the scope to observe the functions of focused on General banking system.

In this report I have tried to show the real financial situation and performance of
the Prime Bank Ltd. I analyzed BCG growth share matrix to show the market
position in banking industry of Prime Bank Ltd. In addition, Porters five forcesis
analyzed to show the competition of Prime bank with others banks. SWOT
analysis show the Prime Banks strengths, weakness, opportunities, and threats
and ratio analysis indicates the current financial condition.

I hope inspite of my all limitations, this experience of sharing works with such
working environment will help me a lot in my professional life.

5.2Recommendation:

On the basis of my observation, I would like to present the following

recommendations:

PBL should increase its number of ATM booth to make convenient use
for its customers. While people can do their shopping with their debit

29
 card, but PBL does not have this facility in their debit card. It should
look into this aspect seriously.

PBL, Asad Gate branch has huge number of customers; so, the bank
should provide behavioral training to the employees to deal with the
customers more efficiently and smartly.

PBL should focus on the Marketing aspect to let new customers know
about their products, and offerings.

In order to overcome signature verification problem during account

opening procedure, the online branches should update their account
holders signature regularly and the process of on-line conversion of the
banks should be faster.

Customer opinion is very important for the development of a service

oriented organization. So if the branch considers the customers opinion,
then it will be helpful to the bank. They can place a customer opinion
box where the customer can write down their opinions and drop that to
the box. By this ,banks can get important information from its clients,
who will also consider themselves valuable to the bank.

Although, officers are very much co-operative, and as well as helpful,

but still, job rotation need to be practiced, so that each and every officer
can become specialized in all kinds of tasks.
Over burden of work put the employees under stress to do work
systematically. The employees should be assigned with proper and
specific assignment.
Most of the employees are not expert on computer literacy. The
management should train them effectively.

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 The bank should try to arrange more training programs for their officials,
so thatthe employees can do their works more quickly, and maintain the
quality of work.
PBL should improve office atmosphere to give customers a better
feeling.

On the basis of competitive business environment, I would like to present

the following recommendation:

In this ever-changing context of global business, and in a competitive business

environment, we can see lot of new commercial banks have been established in
the last few years and these banks have made this banking sector very
competitive as well as challenging. So in order to survive in this competitive
environment, PBL should manage its assets and liabilities in an efficient way. It
is very necessary to have excellent knowledge, skill and behavior of the
employees to meet the business goals. PBL should focus on the activities of
their competitors regularly, and thus make new strategies for the development of
the business, and as well as to overcome the challenges.

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References:

Annual Report of Prime Bank Limited, 2015

Annual Report of Prime Bank Limited, 2013
http://www.primebank.com.bd/
http://www.investopedia.com/terms/p/porter.asp
https://www.slideshare.net/SanjayKumbhar/porters-five-force-strategy-
for-banking-industry

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Appendix:

Ratio Analysis Formula:

1. Current Ratio = Current Asset / Current Liabilities

2. Quick Ratio = (Current Asset Inventory) / Current Liabilities
3. Debt Ratio = Total Asset / Total Equity
4. Return on Shareholders Equity = Total Income / Total Equity

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