CHAPTER I

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Introduction
Free market economy is now world’s concern. Banks are a key financial institution that plays a
vital role in the country’s economy. The present economic state of Bangladesh demands
immediate development of financial institutions. To keep pace with this situation, banks need
executives with modern banking knowledge. To supply well versed graduates, PUC is
conducting Masters in Business Administration (MBA) program. To equip them. “Practical
Orientation in Banks” is a part and parcel of about three months duration. Under this system I
was sent-to First Security Bank Ltd. To familiarize with day to day affairs of the Bank from
February 12, 2006 to may 12, 2006. This report has been prepared in the light of practical as well
as theoretical knowledge. Also it is prepared under the guidance of the core teacher and overall
supervision of the program director.
We have moved a long way from the time when the banks were mere deposit taking and money
lending institutions. The old concepts, attitudes and methods in banking have undergone a
marked change all over the world; and Bangladesh has not lagged behind. Banks are required to
participate in the nation building activities and act as agent for bringing about socioeconomic
changes. At the beginning of 1996, we observe an era of unprecedented all round growth since
nationalization of commercial banks.
Entering a new decade, banking needs become more acute than ever before as a result the branch
network has widened and functional dimensions have broadened. Thus the field of banking
industry has enormously increased in all spheres and it would not be exaggerated to say that the
banking industry could now be looked upon as the pivot around which the economic activity
revolves. It is truer because of interdependence that has developed between banks and economic
growth. Its competitive strength lies in setting high standard of integrity and in providing total
satisfaction to its customers. Its team of dedicated professionals is committed to provide useful
services by using the latest technology make bankable proposals harvest maximum benefits for
the customers, the shareholders, and the society at large.
Statement of Problem
In today’s changing world the business environment is changing rapidly. In the age of
information and technology, we have seen change has occurred in every aspect of our life from
personal to business, government to private, national to international, so the nature of people and
their expectation from the job is also changing. As a student of business we have to attend
internship program after successful completion of all the courses to gain the practical implication
of our theoretical knowledge, while pursuing my internship program in First Security Bank
Limited, I have come across various human resource and behavioral issues which I think play a
significant role in their performance. Primary assumptions are. The purpose of the study is to
describe the on going position of First Security Bank Limited.
Objectives of the Study:
 To fulfill the course requirement of MBA Program;
 To acquaint with day–to–day functioning of service oriented banking business.
 To have practical exposure in banks that will help a lot to understand the future courses
of the program.
 To analyze and understand the fi Bank’s overall financial situation over the last few
years.
 To find out the Problems those are presently facing by the bank.
 To find out the First Security Bank’s overall performance in comparison to other banks.
 To have an idea about the different techniques of bank performance evaluation.
Methodology of the Study:
The research methodology of the study has been enumerated below.
Data Collection
For the purpose of this study, collected both primary and secondary. Primary data are collecting
from personal interview, but most of the data are collected, is more or less processed data or
secondary data. The data were collected from the various sources like different publications,
library sources, and web page of First Security Bank Ltd. Islamic bank. Southeast Bank Ltd. &
Social Investment Bank Ltd.
Treatment of the Data: For analyzing the performance of First Security bank data were collected
from the 2000 to 2004. The SWOT analysis is done to see the bank’s present condition.
Limitation of the study:
There are some limitations in this study--
 Firstly, no regression framework has been presented to analyze situation.
 Secondly, the sample period is limited which is too short to have a clear view.
 Thirdly, inflation is not considered in this study.
 Fourthly, no comparison is made on the service quality of the banks. Finally, no
comparison of value of the shares is made.

Suggestion for future research:

This study can be further elaborated by taking statistical tools for analysis. A model can be
formulated to see how much profitability is affected by investment. The banks other services can
also be compared to have clearer picture.

There is no doubt that First Security bank’s popularity is growing day by day in our country,
FSBL will continue to grow and prosper, and the Bangladeshi's financial sector policy will to
support strong, successful institutions. The key to the future is to remain focused on all our
overall strategy and fundamental things we do that we have made successful; offering first rate
service to our customers and working together as an effective team.