i

An Analysis of Deposit Schemes

of Janata Bank

A Study on Sarulia Corporate Branch

Date of Submission: 1st October, 2018

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Internship Report
on
An Analysis of Deposit Schemes
of Janata Bank

A Study on Sarulia Corporate Branch

Prepared To:
Mohammad Shibli Shahriar
(Associate Professor)
Department of Business Administration
Faculty of Business & Economics
Daffodil International University

Prepared By:
Md. Wakil Uddin Bhuiyan
ID: 151-11-4380
Major in Marketing
Bachelor of Business Administration (BBA)
Daffodil International University

Date: 1st October, 2018

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Letter of Transmittal

1st September, 2018

Mohammed Shibli Shahriar

Associate Professor & Head (In-Charge)
Department of Entrepreneurship
Faculty of Business Economics
Daffodil International University

Subject: An Analysis of Deposit Schemes of Janata Bank

Dear Sir,
This is my pleasure that I have completed my internship report and hereby ready to
submit my report on “An Analysis of Deposit Schemes of Janata Bank: A Study on
Sarulia Corporate Branch” under your kind supervision as a requirement of completing
the degree. I have tried my best to prepare the report in consistence with the optimal
standard under your valuable direction.
This report along with all kinds of necessary information regarding the internship is being
submitted to you for your evaluation. I sincerely hope that you will appreciate my effort.

Sincerely yours,
Md. Wakil Uddin Bhuiyan
ID: 151-11-4380
Major: Marketing

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Student’s Declaration
I do hereby solemnly declare that the work presented in this Internship Report has been
carried out by me and has not been previously submitted to any other University/College/
Organization for an academic certificate/ degree. I, Md. Wakil Uddin Bhuiyan, ID No:
151-11-4380 hereby declare that the presented internship report on “An Evaluation of
Deposit Schemes and Customer Satisfaction of Janata Bank Limited” as a part of
Bachelor of Business Administration at Daffodil International University submitted as a
course requirement for Daffodil International University was prepared by me. The work I
have presented does not breach any existing copyright and no portion of this report is
copied from any work done earlier for a degree or otherwise.

I further undertake to indemnify the damage arising from breach of the foregoing
obligations.

Md. Wakil Uddin Bhuiyan

ID: 151-11-4380
Major: Marketing
Bachelor of Business Administration
Department of Business Administration
Daffodil International University

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Acknowledgement

It is a great pleasure to prepare the internship report titled “An Analysis of Deposit
Schemes of Janata Bank: A Study on Sarulia Branch”.
I wish to acknowledge the immeasurable grace and profound kindness of almighty Allah,
the supreme ruler of the universe, who enables me to make my report in reality.

I acknowledge my immeasurable gratitude to Mohammed Shibli Shahriar, Associate

Professor, Faculty of Business Economics, Daffodil International University, for his
helpful supervision, suggestion, guidance and encouragement. In fact, he guided me as
my teacher and motivator to make me understand and conduct a complete report like this
one. I note his contribution with high dignity.

I would express my sincere thanks to the Branch Manager and other officers of Janata
Bank Limited at Sarulia Branch. Thanks are also due to staffs and officers who spent
much of their valuable time in discussing with me.

I sincerely express my deepest gratitude to Department of Business Administration and

all the officials of department for their relentless help and caring attitude and so many
others whose names I failed to mention here, I thank you all.

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Executive Summary
As a part of Internship program for Business Graduate students, each of the student’s
needs an organizational attachment. Being attached with Janata Bank Limited, this study
has been undertaken to fulfill the internship purpose. During a specified period of
internship, the students are required to prepare a report on the organization from where he
has completed his internship.

The report provides an overview of Janata Bank Limited. Janata Bank Limited is a state
owned commercial bank with an authorized capital of BDT. 30,000 million paid up
capital of Tk. 19,140.00 Million, reserve of Tk. 20,321.54 million. The Bank has a total
asset of Tk. 77603.91 million as on 31st December 2017. Immediately after the emergence
of Bangladesh in 1971, the erstwhile United Bank Limited and Union Bank Limited were
merged and renamed as Janata Bank.

The second chapter states corporate vision and mission, core values, ethical principles,
strengths, needs, brand, strategic objectives of Janata Bank Limited (JBL).

The third chapter consists of theoretical aspects of customer satisfaction. Customer

satisfaction is the perception of the customer that the outcome of a business transaction is
equal to or greater than his/her expectation. We can know the reliability and
responsiveness of Janata Bank. We also know the assurance of Janata bank. We can know
about the care and Empathy of Janata Bank.

The fourth chapter states the Janata Bank Deposit Schemes. We can know about
Janata Bank schemes system and types of loan, current situation of loan system and
limitation of Janata Bank

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 Table of Contents
Name of the Topics Page No

Letter of Transmittal iii

Student’s Declaration iv
Acknowledgement v
Executive Summary vi

Chapter-1 Introduction 2

1.1 Origin of the Report 3

1.2 Objectives of the study 3

1.3 Methodology of the Study 4

1.4 Scope of the study 6

1.5 Limitations of the study 6

Chapter-2 Company Profile 7

2.1 Company Overview 8

2.2 Corporate Vision and Mission 9

2.3 Core Values of JBL 9

2.4 Ethical Principles 10

2.5 Strategic Objectives of JBL 10

2.6 Statement of Forward Looking Approach 13

2.7 New Services Scheme 14

2.8 SWOT Analysis of Janata Bank Ltd. 14

 Name of the Topics Page No

Chapter-3 Customer 16
Satisfaction of Janata Bank
Limited
3.1 What is Customer Satisfaction? 17
3.2 What Do Customers Want? 17
3.3 Defining Service Quality and Satisfaction 18
3.4 Service Quality Dimension (SERVQUAL) Model 19-21
3.5 Reliability 22
3.6 Responsiveness 25
3.7 Assurance 28
3.8 Care & Empathy 31
3.9 Tangibility 34 -36
Chapter-4 37
Janata Bank Deposit Schemes
4.1 Types of Loan 38
4.2 Loan Products 39
4.3 Loan Classification 40
4.4 Deposit Products of Janata Bank Limited 41
4.5 Current Interest Rate 42
4.6 Limitation of Loan Section 43
4.7 Project Appraisal 44
4.8 Techniques of Project Appraisal 44
4.9 Principle of Sound Lending 45
4.9.1 Recovery performance of Janata Bank Limited 46-47
4.9.2 Loan Monitoring 48
4.9.3 SWOT Analysis 49
Chapter-5 50
Recommendations and Conclusion
5.1 Findings 51
5.2 Recommendations 52
5.3 Conclusion 53
Bibliography 54
 1

Chapter-1
Introduction
 2

Introduction:
Every discipline or program has a specific purpose. To achieve their purpose, they
employ their efforts. For example, the purpose of MBBS program is to make good
doctors who will treat the patients. The purpose of engineering program is to make good
engineers who will design and construct building, roads, bridges etc. The purpose of
LLB, LLM, or Bar-at-Law etc. is to make good layers who will fight cases. Similarly the
purpose of Bachelor of Business Administration (BBA) Program is to make good
administrator who will operate a business or any other organization efficiently and
effectively.

Knowledge is the prerequisite of any activity or profession. Both theoretical and practical
knowledge are essential for an activity or a profession. To be a good business
administrator, a student must acquire theoretical and practical knowledge regarding
business administration. The students of BBA program have to acquire theoretical
knowledge about different aspects of business administration. At the last semester, the
students have to do major on a specific filed of business administration and perform an
internship program in an organization to acquire practical knowledge regarding business
administration. The learning from internship program has to be presented in a report.
 3

1.1 Origin of the Report:

A student of Bachelor of Business Administration (BBA) has to work in an organization

as an intern. The knowledge he has acquired during the BBA Program apply in the
practical field. A student in Internship Program may work in different organizations like
banks, insurance companies, garments companies, IT companies, leasing companies,
manufacturing companies etc. But the selection of the type of organization depends on
the subject on which a student completed his major.

Duration of the Internship Program is three months. After the completion of Internship
Program, a student has to submit a report on a specific topic to the Vice Chancellor of
Daffodil International University. The student has to coordinate both theoretical and
practical knowledge in preparing report. But practical knowledge and experience are
reflected in the report mostly. Internship Report demonstrates that the students have
successfully completed the Internship Program. As per requirement of the BBA Program,
I have prepared an Internship Report on Assessment of Customer Satisfaction of
Janata Bank Limited.

1.2 Objectives of the study:

The Internship Report on Assessment of Customer Satisfaction of Janata Bank Limited

serves several objectives.

Primary objectives:
The broad objective of the is to evaluate the customer satisfaction towards Janata Bank
Limited, Sarulia Branch.

The specific objectives of the study are as follows:

1. To identify the factors that can satisfy the customers of Janata Bank Limited, Sarulia
Branch.
2. To measure the level of satisfaction of customers of Janata Bank Limited, Sarulia
Branch.
3. To find out some problems that customers face in Janata Bank Limited, Sarulia
Branch.
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1.3 Methodology of the Study:

Selection of the Topic

Identify Data Sources

Collection of Data

Classification, Analysis,
Interpretation and Presentation of
Data

Findings of the Study

Final Report Preparation

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Figure 1.1: Flow chart of methodology

a) Selection of the topic: The topic was assigned by my honorable supervisor.

b) Identifying data sources: Primary and Secondary data were used and the study
also required interviewing the officials and staffs where necessary.
c) Collection of data: Information was collected to furnish this report both from
primary and secondary sources.

Primary Sources of Data:

 Face-to-face conversation with the respective officers of Janata Bank Ltd, and
discussion and briefing by the Executives of the Bank Informal conversation with
the clients.

Secondary Sources of Data:

Internal Sources:

 Annual Report of Janata Bank Limited

 Periodicals published by Bangladesh Bank
 The Internet was also used as a theoretical source of information
 Banking Manual, Literature, Reading various Journals, Leaflets

External Sources:

 Different Books & Periodicals on Banking

 Government Report
 Newspaper, TV news & magazine

d) Classification, analysis, interpretation and presentation of data: To classify,

analyze, interpret and presentation of data, some arithmetic and graphical tools are
used to understand them clearly.
 6

e) Findings of the study: In this stage, problems of the study are pointed out and
they are shown under concerned heads. Recommendations are suggested
thereafter to overcome the problems.

f) Final report preparation: On the basis of the suggestion of our honorable

Supervisor, some deductions and additions are made and final report is prepared
thereafter.

1.4 Scope of the study:

The range of action for preparing Internship Report on An Evaluation of Customer

Satisfaction towards Janata Bank Limited: A Study on Matuail Branch was the different
aspects of customer satisfaction of Janata Bank Limited. The report covered the
following:

 Overview of Janata Bank Limited

 Theoretical aspects of customer satisfaction
 Customer satisfaction of Janata Bank Limited

1.5 Limitations of the study:

There were several problems appeared while preparing report on Customer Satisfaction of
Janata Bank Limited. The following problems were appeared in preparing the report:

 Lack of adequate up-to-date information.

 Time constraints prevented to prepare the report in detail.
 Data could not be collected from sources directly as it was very expensive and
time consuming.

 Detail analysis and evaluation were not performed as it needed huge time and
information which was unavailable.
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Chapter-2
Company Profile
 8

2.1 Company Overview:

Janata Bank Limited, one of the state owned commercial banks in Bangladesh, has an
authorized capital of BDT. 30000.00 million (Approx. US$ 384.62million), paid up
capital of Tk. 19,140 million, reserve of Tk. 20,321.54 million. The Bank has a total asset
of Tk. 77603.91 million as on 31st December 2017. Immediately after the emergence of
Bangladesh in 1971, the erstwhile United Bank Limited and Union Bank Limited were
merged and renamed as Janata Bank. On 15th November, 2007 the bank has been
corporatized and renamed as Janata Bank Limited.

• Janata Bank Limited currently operates through 910 branches including 4

overseas branches in United Arab Emirates. It is linked with 1242 foreign
correspondents all over the world.

• The Bank employs 14413 personnel.

• The mission of the bank is to actively participate in the socio- economic
development of the nation by operating a commercially sound banking
organization, providing credits to viable borrowers, efficiently delivered and
competitively priced, simultaneously protecting depositor‟s funds and providing a
satisfactory return on equity to the owners.

• The Board of Directors is composed of 11 (eleven) members headed by a

Chairman. The Directors are representatives from both public and private sectors.

• The Bank is headed by the Chief Executive Officer & Managing Director, who is
a reputed banker.

• The corporate head office of the Bank is located in the capital city Dhaka with 10
(ten) Divisions comprising of 44 Departments.
 9

2.2 Corporate Vision and Mission:

Vision:
To become the effective largest commercial bank in Bangladesh to support
socioeconomic development of the country and to be a leading bank in South Asia.

Mission:
Janata Bank Limited will be an effective commercial bank by maintaining a stable growth
strategy, delivering high quality financial products, providing excellent customer service
through an experienced management team and ensuring good corporate governance in
every step of banking network.

2.3 Core Values of JBL:

Commit
ment
Account
Quality
ability

Core
Responsi
Values Diversity
bility
of JBL

Transpar Sustaina
ency bility
Professi
onalism
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2.4 Ethical Principles:

Bank deals with public money where ethical compliance is very important. JBL follows
and maintain ethical values in every sphere of its banking operation and customer
services. The core ethics of JBL business are as follows:

• Implement justice and fairness;

• Ensure optimal customer services;

• Maintain privacy and secrecy of customer’s information;

• Prevent money laundering and corruption;

• Protects and upholds corporate values;

• Maintain accuracy and transparency in financial reporting;

• Protect natural environment.

2.5 Strategic Objectives of JBL:

JBL Has

 Concern
 Commitment
 Competence
JBL’s Strengths

 Nationwide networks, 893 branches

 Foreign network, 4 branches and
 1242 foreign correspondence
 State-owned image
 Goodwill
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 Received globally recognized awards

 Strong deposit base

 No capital shortfall
 No provision shortfall
 Skilled manpower
 Experienced higher level management
 Newly recruited talents
 Friendly board of directors

JBL Needs:

 Sense of belonging (ownership)

 Improve service mentality
 Human touch with clients
 Proactive, team spirit
 Loosing branches make profitable
 Chronic weak branches make strengthen
 Managerial efficiency (GIS of good customer/
 borrowers; meeting each within 1 km radius)
 Strong cash recovery
 Strategic thinking
 More agricultural loan
 Broadening of deposit base; reaching all
 Automation, on-line banking
 Need based training
 More remittance
 Discipline, chain of command
 Hygienic bank premises
 Avoid intermediary between management and clients
 No hidden cost
 Avoid insurance engineering
 12

 Demand estimation of CC loan

 Proper security valuation
 Manager willing to take risk
 Borrower’s preference
 Disposal through ADR
 Synthesis of mass banking and elite banking
 Avoid loan sanctioning bureaucracy
 Innovative thinking
 Free from corruption
 Aware gender sensitivity

JBL’s Brand:

 Quality and responsive staff

 Efficient service
 High and sustained growth (deposit
 Advance, import, export, foreign remittance
 Non-interest income and recovery)
 Good quality loan
 Low classified loan
 Timely recovery
 Business diversification
 Attract low cost deposit
 Participate in capital market
 Improve agricultural loan
 (Disbursement, recovery etc.)
 High impact of CSR
 Aesthetic infrastructure
 13

2.6 Statement of Forward Looking Approach:

The bank’s forward-looking statements are its management’s outlook on future events.
Such outlooks are based on management’s current achievement and are subject to
uncertainty and changes in circumstances. JBL forward looking statements contains
management views and advance thinking based on the assumption of business condition,
future expectation. Economic & financial scenario of the country and sustainability which
are subject to some known & unknown risk. As a result actual performance or results may
be adverse or materially differ from original plan due to a variety of factors including
those without limitation to the followings:

 Changes in fiscal, monetary and trade policies;

 Changes in national economic and financial conditions;
 Changes in regulatory guidelines and government policy issues;
 Changes in accounting standards;
 Changes in corporate tax structure;
 Changes in legislation and regulation of VAT on banking services;
 Changes in interest rates, forex rates and commodity prices;
 Changes in confidence and behavior of customers;
 Instability in capital markets;
 Volatility of interest rate and money market;
 Changes in socio-economic condition arises from natural calamity and political
disturbance;

 Global embargo/unrest in various countries affecting flow of remittances and trade;

 Changes in market structure and increases of business competitor;
 Adverse impact of inflationary pressure;
 Increase of provision requirements;

  Unforeseen natural disasters.

 14

2.7 New Services Scheme:

 Financing IT Sector
 Financing of Industries
 Ready Cash
 Windows for SMEs
 Loan to Travel Agencies
 Loan to Diagnostic Centers
 NRB Escrow Account
 NRB Gift Cheque

2.8 SWOT Analysis of Janata Bank Ltd.

SWOT analysis refers to analysis of strengths, weaknesses, opportunities and threats of

an organization. For all of these, SWOT analysis is considered as an important tool for

making changes in the strategic management of an organization.

2.8.1 Strengths of Janata Bank Ltd.

• Top Management consisting efficient management group.

• Company Reputation with positive image in the banking industry.
• Many Branches to satisfy customer needs.
• Various Products and Services for clients.

2.8.2 Weaknesses of Janata Bank Ltd.

• Heavily depended on head office for decision making.

• Absence of upgraded website.
• Low remuneration package.
• Low promotional campaign.
• Not fully computerized.
 15

2.8.3 Opportunities of Janata Bank Ltd.

• Product line proliferation for introducing more branches

• Introducing special corporate scheme
• Developing new products and services.

2.8.4 Threats of Janata Bank Ltd.

• The default risks of all terms of loan have to be minimizing in order to sustain in
the financial market. Because default risk leads the organization towards to
bankruptcy.

• The low compensation package of the employees from mid-level to lower level
position threats the employee motivation.

• Some commercial/ foreign as well as private banks.

• Customer awareness of pricing and services.
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Chapter-3

Customer Satisfaction
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3.1 What is Customer Satisfaction?

Customer satisfaction is the perception of the customer t hat the outcome of a business
transaction is equal to or greater than his/her expectation. Customer satisfaction measures
how products and services supplied by a company meet or surpass customer expectation.
It is defined as "the number of customers, or percentage of total customers, whose
reported experience with a firm, its products, or its services (ratings) exceeds specified
satisfaction goals." Customer Satisfaction has become an important aspect of measuring
performance. Particularly for the banking and finance industry. As most banks and
finance organizations offer similar products and services. Improving customer
satisfaction is the most important factor in maintaining as well as increasing market share
for these organizations.

3.2 What Do Customers Want?

Customers have expectations from the products and services offered to them by the
business enterprises. Customers‟ expectations are of two types.

i. Expressed
ii. Implied
(i) Expressed: Customer Expectations are those requirements that are written down
in the contract and agreed upon by both parties for example, product specifications and
delivery requirements.

(ii) Implied: Customer Expectations are not written or spoken but are the ones the
customer would „expect‟ the supplier to meet nevertheless.

For example, a customer would expect the service representative who calls on him to be
knowledgeable and competent to solve a problem on the spot.

Customers‟ expectations may change overtime. There are many reasons why customer
expectations are likely to change overtime. Process improvements, advent of new
technology, changes in customer‟s priorities, improved quality of service provided by
competitors are just a few examples.
 18

3.3 Defining Service Quality and Satisfaction

The two separate terms “satisfaction” and “quality” are difficult to define in general, and
press writers tend to use those terms interchangeably. However, the more precise
meanings and measurement of the two concepts were developed after a
considerable debate. Although these two consensuses share something in common, the
fundamental causes and outcomes differ from one another. While satisfaction is a wide
and broad concept in general, service quality has specific attributes of the service itself.

Service quality is a reflection of the customer’s perception of reliability, assurance,

responsiveness, empathy and tangibles. Whereas customer satisfaction is more inclusive
and perceived according to service quality, product quality, price, situational factors and
personal factors. (Zeithaml, Bitner & Gremler, 2009, 103.

3.4 Service Quality Dimension (SERVQUAL) Model

The SERVQUAL model is a widely accepted model of determining and

expressing the customer satisfaction. It was first published in 1988 and has undergone
improvements and revisions since then. As it is easy to understand and to identify the
customer satisfaction level this model is selected to use in the report. There are
five major those entirely represent the service quality. These are explained below:

Tangibility: Representing the Service Physically

Tangibility is defined as the appearance of physical facilities, equipment, personnel and

communications materials. Customers, particularly new customers, use these physical
representations or images to assess quality. Service companies can make good use
of tangible factors to improve their image, provide continuity, and indicate
quality to customers, or even combine them with another element to create a service
quality strategy. (Zeithaml, Bitner & Gremler 2009, 115
 20

Customer Satisfaction of Janata Bank:

The results regarding the customer satisfaction of Janata Bank are produced according to
the various service quality dimensions. Each dimension consists of its own specific
questions. The results of the survey are presented according to these questions that were
asked to the respondents with the help of a structured questionnaire. The results of this
study are as follows:

3.5 Reliability:
The respondents were asked three questions to assess the reliability dimension of Janata
Bank limited according to service quality model. These questions are as follows:

Q1: The bank provides services within the time promised?

The respondents placed a high importance in this characteristic of the service. The majority of the
respondents were indifferent. 2% customers are highly satisfied, 20% customers are satisfied 60%
customers are indifferent as well as 18% customers are negative and 2% customers are strongly
negative with this statement.

Satisfaction Score Satisfaction Percentage

5 2%
4 20%
3 58%
2 18%
1 2%

Table -1
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Provides services within promised time

80 %

60 %

40 %
Provides services within
20 % promised time

0%

Score 5 Score 4 Score 3 Score 2 Score 1

Chart - 1
Q2: Employees give appropriate solution to problems.
It is one of the most vital parts of the reliability. Customer always tries to get appropriate
solution to problem. 1% customers are strongly satisfied, 15% customers are satisfied,
40% customers are indifferent and 43% customers are disagreeing and 1% customers are
strongly disagreed with this statement.

Satisfaction Score Satisfaction Percentage

5 1%
4 15%
3 40%
2 43%
1 1%

Table-2
 22

Employees give appropriate

solution to problems.
50%
40%
30%
Employees give
20% appropriate solution to
10% problems.

0%
Score 5 Score 4 Score 3 Score 2 Score 1

Chart-2

Q3: Errors and mistakes are corrected promptly.

The respondents placed a high importance in this characteristic of the service. The
majority of the respondents are indifferent. 5% customers are highly satisfied, 25%
customers are satisfied 40% customers are indifferent as well as 30% customers are
negative with this statement.

Satisfaction Score Satisfaction Percentage

5 5%
4 25%
3 40%
2 30%
1 6%

Table-3
 23

Errors and mistakes are corrected

Promptly
50%

40%

30%
Errors and mistakes are
20%
corrected promptly
10%

0%
Score 5 Score 4 Score 3 Score 2 Score 1

Chart – 3

3.6 Responsiveness:

Three attributes were grouped in this dimension and the respondents were asked to
express their opinion. Results are shown below:

Q1: Employee gives you prompt service.

The respondents have different opinion. 2% customers are highly satisfied, 40%
customers are satisfied with this statement, 30% customers are indifferent as well as
28% customers are negative with this statement. The results are as follows:
 24

Satisfaction Score Satisfaction Percentage

5 2%
4 40%
3 30%
2 28%
1 0%
T a b le 4

Employee gives your prompt

Service.
50 %

40 %

30 %

:Employee gives you

20 %
prompt service.

10 %

0%

Score 5 Score 4 Score 3 Score 2 Score 1

Chart -4
 25

Q2: Employees are always willing to help.

Employees are always willing to help but their resources are limited so they cannot give
higher percentage of satisfaction. The majority of the respondents are satisfied. 10%
customers are highly satisfied, 45% customers are satisfied with this statement, 25%
customers are indifferent as well as 20% customers are negative with this statement. The
results are as follows:

Satisfaction Score Satisfaction Percentage

5 10%
4 40%
3 25%
2 20%
1 0%
Table-5

Employees are always willing to help

50%

40%

30%
Employees are always
20%
willing to help
10%

0%
Score 5 Score 4 Score 3 Score 2 Score 1

Chart -5
 26

Q3: Employee always searches for solution.

Most of the respondents were in indifferent while expressing their satisfaction towards this
aspect. The satisfaction percentages of this attribute were dissatisfactory. 35% customers
are satisfied, 40% customers are indifferent, 20% customers are disagreeing with this
statement and 5% customers are highly disagreeing with this statement.

Satisfaction Score Satisfaction Percentage

5 0%
4 35%
3 40%
2 20%
1 5%

Table-6

Employees always searches for

solution
50%
40%
30%
20% Employees always
searches for solution
10%
0%
Score 5 Score 4 Score 3 Score 2 Score 1

Chart-6
 27

3.7 Assurance:

The respondents were asked three questions to assess the reliability dimension of Janata
Bank limited according to service quality model. These questions are as follows:

Q1: Friendliness & Courtesy of the Employee

This attribute was also found to be another one of the most important ones. In this
attribute satisfaction percentage is not much higher. 32% customers are satisfied, 40%
customers are indifferent, 25% customers are disagreeing with this statement and 3%
customers are highly disagreeing with this statement.

Satisfaction Score Satisfaction Percentage

5 0%
4 32%
3 40%
2 25%
1 3%

Table-7

Friendliness and courtesy of the

Emlpoyees
50%
40%
30%
Friendliness and
20% courtesy of the
Emlpoyees
10%
0%
Score 5 Score 4 Score 3 Score 2 Score 1

Chartt-7
 28

Q2: You feel safe in your transactions with Janata Bank.

Most of the respondents were satisfied while expressing their satisfaction toward this
aspect. 25% customers are highly satisfied, 45% customers are satisfied with this
statement, 30% customers are indifferent. Most of the respondent‟s positive with this
statement. The results are as follows:

Satisfaction Score Satisfaction Percentage

5 25%
4 45%
3 30%
2 0%
1 0%
Table-8

You feel safe in your transactions

with Janata Bank.
50%

40%

30%
You feel safe in your
20% transactions with Janata
Bank.
10%

0%
Score 5 Score 4 Score 3 Score 2 Score 1

Chart-8
 29

Q3: Your deposited money is safe in Janata Bank.

The respondents were satisfied with this aspect. 25% customers are highly satisfied, 40%
customers are satisfied with this statement, 35% customers are indifferent. Most of the
respondent‟s positive with this statement. The results are as follows

Satisfaction Score Satisfaction Percentage

5 25%
4 40%
3 35%
2 0%
1 0%

Table-9

Your deposited money is safe in

Janata Bank
50%
40%
30%
20% Your deposited money is
safe in Janata Bank
10%
0%
Score 5 Score 4 Score 3 Score 2 Score 1

Chart-9
 30

3.8 Care & Empathy:

Three attributes were grouped in this dimension and the respondents were asked to express
their opinions. Results are shown below.

Q1: Janata Bank gives attention to every individual

Most of the respondents were in indifferent while expressing their satisfaction towards this
aspect. In this attribute satisfaction percentage is not much higher. 20% customers are
satisfied, 42% customers are indifferent, 30% customers are disagreeing with this
statement and 8% customers are highly disagreeing with this statement.

Satisfaction Score Satisfaction Percentage

5 0%
4 20%
3 42%
2 30%
1 0%

Table-10
 31

Janata Bank gives attention to every

individual
50%
40%
30%
Janata Bank gives
20% attention to every
10% individual
0%
Score 5 Score 4 Score 3 Score 2 Score 1

Chart-10

Q2: Employees of Janata Bank understand your specific needs

Most of the respondents were in indifferent while expressing their satisfaction towards this
aspect. In this attribute satisfaction percentage is not much higher. 25% customers are
satisfied, 55% customers are indifferent, and 20% customers are disagreeing with this
statement.

Satisfaction Score Satisfaction Percentage

5 0%
4 25%
3 55%
2 20%
1 0%
Table-11
 32

Employees of Janata Bank

understand your specific needs
60%
50%
40%
30% Employees of Janata
Bank understand your
20%
specific needs
10%
0%
Score 5 Score 4 Score 3 Score 2 Score 1

Chart-11

Q3: Janata Bank has your best interest at hearts

This attribute was also found to be another one of the most important ones. In this
attribute satisfaction percentage is not much higher. 32% customers are satisfied, 48%
customers are indifferent, 15% customers are disagreeing with this statement and 5%
customers are highly disagreeing with this statement.

Satisfaction Score Satisfaction Percentage

5 0%
4 32%
3 48%
2 15%
1 5%
Table-12
 33

Janata Bank has your best interest

at hearts
60%
50%
40%
30% Janata Bank has your
20% best interest at hearts
10%
0%
Score 5 Score 4 Score 3 Score 2 Score 1

Chart-12

4.5 Tangibility:

The respondents were asked three questions regarding the tangibility aspects of services of
the Janata Bank Limited. The results are shown below:

Q1: Janata Bank has visually appealing facilities

Most of the respondents were in indifferent while expressing their satisfaction towards this
aspect. In this attribute satisfaction percentage is not much higher. 25% customers are
satisfied, 45% customers are indifferent, 22% customers are disagreeing with this
statement and 8% customers are highly disagreeing with this statement.
 34

Satisfaction Score Satisfaction Percentage

5 0%
4 25%
3 45%
2 22%
1 8%
Table-13

Janata Bank has visually appealing

facilities
50%
40%
30%
20% Janata Bank has visually
appealing facilities
10%
0%
Score 5 Score 4 Score 3 Score 2 Score 1

Chart-13

Q2: Janata Bank has convenient hours of operation

Most of the respondents were satisfied while expressing their satisfaction towards this
aspect. 44% customers are satisfied, 30% customers are indifferent and 26% customers
are disagreeing with this statement. Most of the respondent‟s positive with this statement.
The results are as follows:

Satisfaction Score Satisfaction Percentage

5 0%
4 44%
3 30%
2 26%
1 0%
Table-14
 35

Janata Bank has convenient hours

of operation
50%

40%

30%
Janata Bank has
20% convenient hours of
operation
10%

0%
Score 5 Score 4 Score 3 Score 2 Score 1

Chart-14

Q3: Statements are easily understood, reliable and accurate

This attribute was also found to be another one of the most important ones. In this attribute
satisfaction percentage is much higher. 10% customers are highly satisfied, 55% customers
are satisfied, 15% customers are indifferent with this statement, 8% customers
are disagreeing with this statement and 2% customers are highly disagreeing with
this statement.

Satisfaction Score Satisfaction Percentage

5 10%
4 55%
3 15%
2 18%
1 2%

Table-15
 36

Statements are easily

understood, reliable and accurate
60%
50%
40%
30% Statements are easily
understood, reliable and
20% accurate
10%
0%
Score 5 Score 4 Score 3 Score 2 Score 1

Chart-15
 37

Chapter-4
Janata Bank Deposit Schemes
 38

4.1 Types of Loan

Continuous
Loan

Other
Loans & Demand
Special
Advance Loan
Scheme

Term Loan
 39

4.2 Loan Products:

1. Continuous Loan:
 Secured Over Draft Against Financial Obligation [SOD(FO)]
 Secured Over Draft Against Work Order [SOD(G)]
 Cash Credit (Hypothecation)
 Cash Credit (Pledge)
 Export Cash Credit (ECC

2. Demand Loan:
 Loan general
 Demand loan against ship breaking
 Payment against documents (PAD)
 Loan against import merchandise (LIM)
 Loan against trust receipt (LTR)
 Forced loan Packing credit Secured over draft against cash incentives
 Foreign documentary bills purchased (FDBP)
 Local documentary bills purchased (LDBP)
 Festival business loan

3. Term Loan:
 Project loan
 Transport loan
 House building loan
 Small business loan
 Consumer finance loan
 Lease finance
 Personal loan
 40

4.3 Loan Classifications:

Loan classification attempts to categorize the debt information in a systematic manner.
Loan classification is defined in terms of degree of risk associated with loans.
Classification of loans mean and include only such assets of the balance sheet of a bank
which do not yield interest income and which have remained past due for some quarters.
Loans are generally categorized in two types Loan

 Classified Loan
 Unclassified Loan

Classified loan:
If any continuous credit is not adjusted/ renewed within expiry date, the loan will be
treated as classified/ irregular loan from the next day of the expiry date. Loans are
classified which are judge to have a reduced chance of repayment. Classified loan can be
three types:
Classified loan

 Substandard
 Doubtful
 Bad/ loss

Substandard: If the loan unadjusted for six months or more but less than nine months, the
loan will be treated as “substandard”.

Doubtful:
For nine months and above but less than twelve months the loan will be treated as
“doubtful”.

Bad:
If the period is twelve months or more, the loan will be classified as “bad”. The above time
frame is applicable in respect of demand loan also.

Unclassified loan: Unclassified loan are those which are repay regularly. Objectives of
loan classification:

 Find out net worth/ adjust capital of a bank

 Help for assessing financial soundness of a bank.
 Calculate the required provision and the amount of interest suspense
 Put the bank on sound footing in order to develop sound banking practice in
Bangladesh
 41

4.4 Deposit Products of Janata Bank Limited:

JANATA Bank offers various types of account to its different types of customer.
These are as follows:

 Current deposit (CD) account

 Savings bank (SB) account
 Short-term deposit (STD)
 Fixed deposit (FDR)
 JBDS (Janata Bank Deposit Scheme)
 EDS (Education Deposit Scheme)
 MDS (Medical Deposit Scheme)

4.5 Current Deposit (CD) Account:

A current account is an account, which is generally opened by business people for their
convenience. A current account is a running and active account, which may be operated
upon any number of times during a working day. There is no restriction on the number &
amount withdrawals from current a/c. It does not allow any interest on this account
Opening Amount/ Initial Deposit Tk. 500
Service Charge (yearly) Tk. 100
Minimum Balance Requirement Tk. 5000

Savings Bank (SB) Account:

This deposit is intended primarily for small-scale savers. The main object of this account is
promotion of thrift. Savings account is meant for those who want to save a certain amount
of their income and earn interest on that for future needs. All features are more or less like
that of CD a/c except for some restriction that is imposed by the bank. Number of
withdrawals over a period of time is limited. The withdrawing amount is not to exceed
25% of the total balance. This A/C mainly opens a person name. Initial deposit requires
opening a savings account is TK. 200. Minimum balance of TK. 200 should maintain in
this account. One cannot withdraw money not more than two times in a week. To withdraw
more than Tk. 20000 seven days notice is required. Service charge is not fixed.
Restrictions:
1. Customer cannot withdraw money more than twice in a week.
2. If customers draw money more than 25% of the balance at a time then no interest is
given for that n month.
 42

Fixed deposit receipt (FDR):

In this category are included the deposit with the bank for a fixed period which is specified
at the time of making the deposit. Such deposits are therefore called fixed deposits or term
deposits. A fixed deposit is repayable on the expiry of a specified period, chosen by the
depositor to suit his purpose and to enable him to get back money as and when he needs it.
The fixed deposit may be made for 3, 6, 12, 24 or 36 months. The banker need not keep
more cash reserves against it and can utilize such amount more profitably. The banker
therefore offers higher rate of interest on such deposits the depositor parts with liquidity
for a definite period. Fixed deposits have grown in importance and popularity in our
country during recent years. When a matured FDR is withdrawn, the principle amount
along with the interest amount (deducting 10% tax from the total) is paid to the client.
Minimum TK. 5ooo requires opening a fixed deposit account. Service charge TK. 200
realized half yearly on customer’s account.

Janata Bank Deposit Scheme (JBDS):

Special advantage with this scheme is that after the scheduled period the client can
withdraw the full amount or can draw pension on monthly basis. Besides the client can
open account in his name in any branch.
Procedure for operation of Janata Bank Deposit Scheme (JBDS)
1. The applicant should be minimum 18 years old and Bangladeshi national.
2. The account holder can appoint one or more nominees.
3. On the death of the account holder his / her nominee can withdraw the whole amount of
money.
4. The account holder can change or cancel his nominee through a written notice.
5. On the death of the account holder, the nominees will be entitled to withdraw the deposit
according to the instruction of the account holder
6. The account becomes inoperable on the death of the account holder.
7. The account under this scheme should be opened within the 10th day of any month
against deposit of the first installment in cash.
Monthly installment: TK.500, 1000,2000,5000,10000,20000

Education saving Scheme (ESS):

Client can nominate their children and open not more than three accounts. The applicant
should be minimum 18 years old and Bangladeshi national.
Monthly installment:
TK.500, 1000, 2000, 3000, 4000, 5000, 6000, 7000, 8000, 9000 &10000.
The monthly installment must be paid by the 10th day of every month. In case of delay a
fine @ TK. 2 per day of defaulted installment will be charged and the fine must be paid
with the installment. The account under this scheme should be opened within the 10th day
of any month against deposit of the first installment in cash. It may be 4 years, 6 years, 8
years& 10years. The maturity amount varies its time & installment. The money will be
 43

paid out on maturity, but Tax / Duty and other charges may be adjusted from the amount in
the account.

Medical Deposit Scheme (MDS):

The applicants / depositors should be minimum 18 years old, being of sound mind, and a
Bangladeshi national. Monthly installment: TK.500, 1000, 2000, 3000, 4000, 5000, 6000,
7000, 8000,9000 &10000. The money will be paid out on maturity according to the table
above, but Tax / Levy/ Excise and other charges as applicable will be adjusted from the
amount.

Current interest rates:

Types of deposit Rate of interest offered (%)

Savings Urban 5.25

Rural 6.25
Savings Deposit from Foreign Remittance 7.00
Short Term Deposit 5.25

Term Deposits:
3 months & above but < 6 months 8.00
6 months & above but < 1 year 8.50
1 year & above but < 2 year 9.00
Deposit Pension Scheme (DPS)
JBDS (10 year) 8.50
JBSDS (10 year) 9.50
MDS (5 year) 8.50
JBMSS: 2 year 10%
4 year 9%
6 year 8.50%
 44

4.6 Limitation of loan sections:

There are some limitations in the advance section of this bank. Among them the major
limitations are-

 Lack of good party.

 Party characteristics are not good all time
 Sometime pressure from top level though the party condition is not good.
 Here there is lack of enough loan schemes that are effective now days.
 Many old payment of loan is due, that creates pressure now.
 Lack of information about old loan that creates problems to continue the case of
default loan.
 Lack of proper documentation about loan.
 Loan Interest rate is very competitive.
4.7 Project Appraisal:
It is the pre-investment analysis done by the officer before approval of the project. Project
appraisal in the Banking sector is needed for the following reasons:
 To justify the soundness of an investment,
 To ensure repayment of Bank finance,
 To achieve organizational goals,
 To recommend if the project is not designed properly.

4.8 Techniques of Project Appraisal:

An appraisal is a systematic exercise to establish that the proposed project is a viable
proposition. Appraising officer checks the various details submitted by the promoter in
first information sheet, application for Investment and loan proposal.
Janata Bank Ltd. considers the following aspects in appraising a proposal.
 Technical viability
 Commercial viability
 Financial viability
 Economic viability

4.9 Principle of sound Lending:

1. Safety
 45

2. Liquidity
3. Profitability
4. Security

Safety
Janata Bank exercises the lending function only when it is safe and the risk factor is
adequately mitigated and covered. Safety depends upon:
The security offered by the borrower. The repaying capacity and willingness of the
borrower is to repay the advance.
Liquidity
The liability of a Bank is repayable of demand or at a short notice. So the Bank has to
maintain its liquidity at a sufficient level. Investment on building, plant, machinery, land
etc. cannot be recovered quickly, so it is less liquid.
Profitability
Profit is needed to pay interest to depositors, depreciation, and maintenance, declare
dividend to shareholders, provide or reserve against bad and doubtful debts etc. so like all
other Banks Janata Bank also disburse advances to earn profit.
Security
To ensure safety of advances, Banks takes different types of securities like MTDR,
Sanchay patra, land, work order etc. Banker should ensure that the securities are adequate,
marketable and free from encumbrances.

4.9.1 Recovery performance of Janata Bank Limited:

 46

When Janata Bank sanctions loans and advances to its customers, they clearly state the
repayment pattern in the loan agreement. But some credit holders do not pay their credit in
due period. The nationalized and private sector commercial banks have to face this sort of
problems. This situation is, especially severe in Janata Bank. To overcome the problem of
overdue loan, the bank need take particular loan recovery program.

Recovery Programs to be taken by JANATA BANK

 To establish a credit supervision and monitoring cell in the bank.
 To re-structure the loan sanctioning and distributing policy of the bank.
 To sanction loans and advances against sufficient securities as best as possible.
 To give more powers to the branch manager in credit management decision making
process.
 To offer a package of incentives to the sound borrowers.
 To give more emphasis on short term loans and advances.
 To impose restrictions on loans and advances for sick industries.
 To take legal actions quickly against unsound borrowers as best as possible within
the period specified by the law of limitations.

Recovery Patterns of Loan and Advances:

Generally Janata bank sanctions loans and advances to every sector of an economy. Before
going into details of recovery performance, we have to be familiar with some terms used in
recovery performance:
 Disbursement: highest outstanding balance on any date during the reporting period
minus outstanding balance at the end of the preceding period.
 Demand for recovery: overdue at the end of the reporting period plus recovery
during the reporting period.
 Recovery: highest outstanding balance on any date during the reporting period
minus outstanding balance at the end of the recovery period.
 Outstanding: Outstanding figures in the ledger at the end of the reporting period.
 Overdue: Demand for recovery minus recovery.

Problems in Loan Recovery:

There are a lot of reasons for which the loan recovery of the bank is very defective. In most
cases, problems may be raised from sanctioning procedures of loan, investigation of the
project, and investigation of the loans etc. that is, the problem in loan recovery proves the
outcomes of the default process in loan disbursement. The main reasons of poor loan
recovery are categorized in four broad types as follow:
 47

Problems created by economic environment:

The following problems arise from the effect of economic environment:
1. Changing in the management pattern: Changing of management patterns may delay the
recovery of mature loan.
2. Changing in industrial patterns: The nationalized banks sometimes sanction loan to the
losing concern for further improvement of the respective sector, but in most cases,, they
fail to achieve progress.
3. Operation of open market economy: In our country mainly industries become sick and
also close their business on account of emerging of open market economy. The cost of
production is high and the quality of goods is not of required of standard. As a result, they
become the losing concerns and the amount of bad loan increases.
4. Rapid expansion of business: There are many companies which expand their business
rapidly, but the expansion is for short time. In the long run, the amount of classified loan
increases.

Problems created by government:

The following problems are arisen by the government:
1. External pressure: Janata Bank has also faced many problems in the loan recovery
process as a part of continuous pressure from various interested groups.
2. Loan to government organization: Janata Bank is bound to sanction loan to government
organization, though these are losing concern. For this reason, banks faced problems in
loan recovery.
3. Legal problems: Existing rules and regulations are insufficient to cover the legal aspects
of loan recovery. As a result, defaulters can get release easily from all charges against
them.
4. Frequent changes in government policies in regard to recovery of loan.

Problems created by the bank:

The following problems are created by the banks:
1. Lack of analysis of business risk: Before lending, Janata Bank does not properly analyze
the business risk of the borrowers and the bank cannot forecast whether the business will
succeed or fail. If it fails to run well, the loan becomes classified.
2. Lack of proper valuation of security or mortgage property: In most cases, bank fails to
determine the value of security against the loan. As a result, if the loan becomes classified,
the bank cannot recover its loan through the sale of mortgage.
 48

4.9.2 Loan Monitoring:

Investment monitoring implies that the checking of the pattern of use of the disbursed fund
to ensure whether it is used for the right purpose or not. It includes a reporting system and
communication arrangement between the borrower and the lending institution and within
department, appraisal, disbursement, recoveries, follow-up etc.

The borrower’s behavior of turnover:

 The information regarding the profitability, liquidity, cash flow situation and trend
in sales in maintaining various rations
 Regular checking the balance of SB/CD/STD accounts of the borrower.
 Periodical visit with the customers to maintain relationship and supervision of
supplied articles
 Legal action to be taken after failings all possible efforts to recover the bank’s due.

 Issuance of legal notice to the defaulter customers and guarantors prior to

classification of the loans.
 49

4.9.3 SWOT Analysis:

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. After surveying
both the clients and officers, SWOT of Janata Bank Limited is given below:

Strengths:
Bank has an interactive corporate culture
It provides moderate range of loans
The interest rate is affordable
It provides some attractive features
The credit risk management is very efficient
High morality of the employees and customers

Weaknesses:
Some other bank charge lower interest rates than JBL
Deficiency of experienced manpower
Other banks provide more loan than JBL
New entrepreneur does not get finance from the JBL
Lack of ATM Booths

Opportunity:
Auto loan is frequently taken by the clients from JBL
Investment opportunity is arising for export- import loans
Branches are situated all over the country as well as abroad.
Being large Bank it can provide large investment.

Threats:
Other banks provide more facilities
Lack of clients
Market pressure for lowering the profit /interest rate
 50

Chapter-5

Findings, Recommendations and

Conclusion
 51

5.1 Findings:

Analyzing the current states of the bank and the responses of the customers to the
questions asked to them, I have found some negative aspects of the services of Janata
Bank Limited. The bank should work on these aspects to amend them. These are as
follows:

1. The quality of service is not satisfactory. The employees don’t provide service as
promptly as expected.
2. The employees are not friendly and keen to provide services to the customers.
3. The bank does not pay equal attention to all customers. The customer having big
transaction gets priority to the one who has small transaction.
4. Though the ATM machines are latest technology but the customers are coming up
with complaints regarding the ATM booths are not available in different area.
5. Quality of service is the most important part of the Janata Bank. But they do not
give.
6. Janata Bank does not use modern equipment and technology that better
satisfy customer’s needs.
7. The customers have to pay charge to get second copy of bank statement. If it is for
last six months then the bank provides it instantly, but if they seek for more than six
months, statements are delivered on after two or three days.
8. The facilities of the offices of Janata Bank Limited are not well furnished and
sophisticated in compared to the private commercial banks.
9. Customers have to wait for a long time to transact with the bank because of laziness
and slow working pace of the employees.
 52

5.2 Recommendations:
Janata Bank Limited is one of the largest and state owned commercial bank in
Bangladesh. To improve the customer satisfaction level of Janata Bank, I have come with
some recommendations to overcome the problems that are present in the bank. The
recommendations are-

1. The bank should the quality of its service. The employees should provide service as
promptly as possible.
2. The employees should have to be friendly and keen to provide services to the
customers.
3. The bank has to pay equal attention to all customers.
4. The bank should make the ATM booths available in different area of the country.
5. Janata Bank should use modern equipment and technology that can better satisfy
customer’s needs.
6. The delivery of bank statements should be made faster so that customers can get
update of their accounts easily and quickly.
7. The facilities of the offices of Janata Bank Limited should be made well-furnished
and sophisticated so that customers can feel good.
8. Transaction time has to be reduced so that customers need not to wait for a long
time.
9. The working pace of the employees has to be improved and laziness towards work
should be removed.
 53

5.3 Conclusion:
This research has provided some interesting insight about to what kind of service the
customers give importance to and what quality service they get from Janata Bank
Ltd.

Obviously the research that the customer requirements are not fully met and they are very
dissatisfied with some of the aspects of the bank. Again the research revealed that only one
third of customers were more or less satisfied with the service of the bank and more than
half of the respondents were on the neutral side of satisfaction line.

Finally, I would say that this research report at Janata Bank has increased my practical
knowledge of Business Administration and made by BBA education more complete and
applied. In this report, I got the opportunity to apply various tools and concepts I learn in
my BBA courses.

Customers are the vital for every business. It is not possible to make a profitable business
without concerning the customer’s benefit. Janata Bank is a great domestic bank. To
achieve the desired position in the market, timely improvement in service is essential

There are some problems found in the services of Janata Bank Limited. The recommended
measures should be taken to solve these problems.

Bibliography:

Books:
 Philip Kotler, “Marketing Management,” 13th Edition, published by Prentice Hall.

Annual Report:
 Annual Report of Janata Bank Limited, 2017
Web References:

www.janatabank-bd.com
www.academia.edu
www.bb.org.bd
www.wikipedia.com
54