Customer Relationship Management Janata

Bank Limited: A Study on its Retail banking

at Aminbazar Branch

1
Customer Relationship Management of Janata Bank Limited: A
Study on its Retail Banking at Aminbazar Branch

Prepared For

The Chairman

4th Year Examination Committee

Prepared By:

Sajibur Rahman

Exam Roll: 142088

BBA Program 5th Batch

Department of Finance and Banking

Faculty of Business Studies

Date of Submission: July 19, 2018

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 LETTER OF TRANSMITTAL

July 19, 2018

The Chairman
Fourth Year Examination Committee
Department of Finance & Banking
Faculty of Business Studies
Jahangirnagar University
Savar, Dhaka-1342

Through: Nilanjan Kumar Saha, Internship Supervisor

Subject: Submission of internship report

Dear Sir

With due respect, I would like to submit my internship report on “Customer Relationship
Management of Janata Bank Limited: A Study on its Retail Banking at Aminbazar Branch”
assigned by Nilanjan Kumar Saha, Internship Supervisor I have taken this report as an
opportunity to reflect my learning about corporate life, organizational policy, internal work
environment, and different aspects of managerial roles what I have learned from my 4 years
long BBA Program. I believe that by collecting information for this report I have learned
something very valuable that would help me in my future work field. I look forward to
making the optimal use of this knowledge that I have gained from this Internship.
Hereby, I hope that you would be kind and generous enough to accept my sincere effort and
oblige thereby. It will be my pleasure to answer any clarification regarding this report.

Sincerely Yours,

__________________
Sajibur Rahman
Exam Roll: 142088
Department of Finance and Banking
BBA Program, Session: 2013-14
Jahangirnagar University
Savar, Dhaka

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 ACKNOWLEDGEMENT

At first I present my due regards to Almighty Allah, who provided me the excellent
opportunity to build and complete this Internship Report Customer Relationship
Management of Janata Bank Limited: A Study on its Retail Banking at Aminbazar
Branch.I am deeply indebted to my supervisor Nilanjan Kumar Saha, Associate Professor
& Dean of the Faculty of Business Studies Department of Finance & Banking, Jahangirnagar
University for his whole-hearted supervision during my organizational attachment period.
His suggestions and comments were really a great source of spirit to make the report a good
one.

My special gratitude goes to Branch Manager Mr. Md. Nadim Ahmed (Aminbazar
Branch). I am also undoubtedly grateful for their suggestions, direction and cooperation.
Additionally, I am also grateful to all other employees of Aminbazar branch, for giving their
advice to complete my report. I am deeply indebted to all officers and senior officers of
Janata Bank Limited, Aminbazar Branch for their friendly and sincere cooperation during
my Organizational attachment period.

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Contents
1. Introduction........................................................................................................................................11
1.1. Background of the study..............................................................................................................11
1.2. Origin of the Report.....................................................................................................................12
1.3. Statement of the Problem.............................................................................................................12
1.4. Objectives of the Study................................................................................................................13
1.5. Research questions.......................................................................................................................13
2. Literature review................................................................................................................................15
2.1. What is a relationship?.................................................................................................................15
2.2. Relationship Marketing................................................................................................................16
2.3. Customer Relationship Management...........................................................................................17
2.3.1. Objectives of CRM Systems.................................................................................................18
2.3.2. CRM in banking sector.........................................................................................................19
2.4. Service quality and CRM practice...............................................................................................20
2.5 Customer expectation....................................................................................................................20
2.6. Customer satisfaction...................................................................................................................21
2.7 Customer loyalty...........................................................................................................................21
2.8 Conclusion....................................................................................................................................22
3. An overview of Janata Bank Limited.................................................................................................24
3.1. Beginning of Banking in Bangladesh..........................................................................................24
3.2. Nationalization of Banks in Bangladesh......................................................................................24
3.3. Profile of JBL...............................................................................................................................25
3.3.1. Corporatization......................................................................................................................26
3.3.2. Corporate Information...........................................................................................................26
3.4. Awards and Achievements...........................................................................................................27
3.5. Management.................................................................................................................................28
3.6. Vision...........................................................................................................................................29
3.7. Mission.........................................................................................................................................29
3.8. Objectives.....................................................................................................................................29
4. Products and Services offered by JBL...............................................................................................31
4.1. Personalized Service....................................................................................................................31
4.2. Deposit schemes section..............................................................................................................31
4.3. Utility Service..............................................................................................................................32
4.4. Bill Collection..............................................................................................................................32
4.5. Payments Made On Behalf Of Govt. To:.....................................................................................32
4.6. One Stop Service..........................................................................................................................32
4.7. Online and ATM Service.............................................................................................................33
4.8. Financing on Export.....................................................................................................................33
4.8.1. Banking at Export Processing Zone......................................................................................33
4.8.2. Facilitating Import.................................................................................................................34
4.9. Financing on SME’s.....................................................................................................................34
4.10. Foreign Remittance Service.......................................................................................................34
5. Methodology of the Study..................................................................................................................36
5.1. Approach......................................................................................................................................36

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 5.2. Target population.........................................................................................................................36
5.3. Primary Source.............................................................................................................................36
5.4. Secondary sources........................................................................................................................36
5.5. Sample size..................................................................................................................................37
5.6. Methods of data collection...........................................................................................................37
5.7. Sampling Method.........................................................................................................................37
6. Findings and Analysis........................................................................................................................39
6.1. Lesson Learned From Internship program...................................................................................39
6.2. SWOT analysis............................................................................................................................39
6.3. Limitations and Challenges..........................................................................................................41
6.4. Findings........................................................................................................................................41
6.5. Response Analysis.......................................................................................................................42
6.5.1. Demographic Questions analysis..........................................................................................42
6.5.2. Response Analysis from the Clients.....................................................................................46
6.5.3. Data Analysis by SPSSS:......................................................................................................56
Concluding statement and Recommendations......................................................................................63
7.1. Recommendation.........................................................................................................................64
7.2. Concussion...................................................................................................................................65
References and Appendices....................................................................................................................66
8.1. References....................................................................................................................................67
8.2. Appendices...................................................................................................................................68

EXECUTIVE SUMMERY

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 EXECUTIVE SUMMERY

Janata bank Limited was initially emerged in the banking scenario of the East Pakistan as
“The United Bank Limited” and “The Union Bank Limited” at the initiative of some
Bengalese entrepreneurs in the year 1959 under Bank Companies Act 1913. After the
independence of Bangladesh in 1972 this Bank was nationalized as per policy of the
Government and renamed as Janata Bank Limited. Janata Bank Limited is a 100%
government owned commercial bank in Bangladesh.

Customer Relationship Management for Retail Customer, it is most simply defined as the
potential that a Bangladeshi bank can adapt by giving customized services to the
stakeholders and specifically to the customers who are takes different types of personal
banking service on a regular basis. The goal of Customer Relationship Management for
Retail Customer is to maximize a bank’s profit and liquidity by serving them better in every
aspects of their need. The success of any organization depends on some strategies different
from others and serving the retail clients is one of the best ideas to do it better. An important
part of serving customers is to customized the service and differentiate it from the others.
The report points out the various functions and activities of Customer Relationship
Management for Retail Customers of Janata Bank Limited, Aminbazar Branch. Here,
explains the basic framework of selecting different retail clients and serving them in a
different manner and their prospects.

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Chapter One
Introduction

8
1. Introduction

1.1. Background of the study

Banking has a long and rich history. It started as a result of people’s need. And with ages it
has been playing an important role in fulfilling the dire needs of businessmen and others. As
the size and complexities of business is increasing day by day banking sector is also
providing various innovative services with basic functions to increase size but to reduce the
complexities.

In the ongoing era of globalization the battle for banks to gain a greater slice of the market
share has been on the rise the world over and Bangladesh is no exception. It has become
quite difficult for banks to meet the ever-increasing customer expectations. In order to
improve their profits banks are growingly looking at ways of achieving organic growth
through acquisition of new customers and retaining existing customers. In this 21St century
one of the approaches that is fast gaining significance is Customer Relationship
Management (CRM), an effective tool to withstand competition.

The relative and marked emergence of CRM as a business strategy has radically
transformed the way organizations operate. The shift in business focus from transactional to
relationship marketing keeps the customer at the centre of all business activities. All the
banking organizations are trying to restructure their processes to meet the needs of their
strategically significant customers. The critical driver of such a dramatic shift towards
customer orientation is the realization that customers are business assets and when managed
effectively they can derive continuous and sustainable economic value for an organization
over their lifetime.

After the completion of four years academic BBA program I, Sajibur Rahman, student of
Jahangirnagar University, Bangladesh was placed in Janata Bank Bangladesh Limited for
the Internship Program. As a requirement for the completion of the program I need to
submit a report, which includes which is based on Aminbazar Branch.

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1.2. Origin of the Report

This internship report is originated as a partial fulfillment of the BBA program of Faculty of
Business Studies (FBS), Jahangirnagar University. This report is a mandatory for the
completion of BBA and it carries credits as well. During the period of my internship, I am
adjusting and applying my theoretical knowledge with my practical experience. The main
purpose of the program is to expose the students to the professional life.

The present competition of various banks is much severe. For that, some banks are
providing customized services to the clients to survive in a better way. Janata Bank Limited
is also taking this type of steps to maintain a good relationship with the retail customers. I
am working on this on my internship period.

1.3. Statement of the Problem

The intensity of competition in banking industry is bound to grow in the years to come
which in turn could make banking operations more challenging and complex. A paradigm
shift is noticeable in the banking industry in Bangladesh. Such a shift reflects in terms of
number of banks, Volume of Business in banking as well as nature of business operations.
Bankers in general have moved a long way from mere financial intermediaries to full-
fledged financial institutions.

In the context of competing bankers who are performing with almost undifferentiated
services, for almost equal prices; the customers of one bank are left with multiple options to
move over to some other banks in search of better services, with little or no barrier of switch
over from one bank to another.

Bankers have to necessarily perform their banking operations with the likelihood risk of the
customer making a bank switches over at any given point of time that might result in
decline in revenue or loss of revenue on the whole.

To prevent or minimize this possibility of customer deflection; bankers have to come out
with customer centric strategic decision. Obviously the conditions draw the attention in
evolving meaningful CRM which would provide a platform for not only retaining existing
customers but also to expand the customer base by attracting additional customers.In a
rapidly scaling up retail banking industry, the major issues are to hold back the existing
customers from migrating towards competitors and in acquiring new customers.

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1.4. Objectives of the Study
The objectives of the study are as follows:

 To develop a framework for Customer Relationship Management Model (CRMM),

applicable to Bangladeshi retail banks.
 To analyze the influence of service quality on customer behavior with respective to
retail banks.
 To examine and assess customer satisfaction levels and their influence in building
the customer loyalty to achieve a sustained market share and profit.
 To examine and assess the external and internal service quality perceptions in
respect of retail banks.
 To study the CRM practice in government commercial bank.

1.5. Research questions

The present study attempts to answer the following research question:


Does the traditional retail banking of Janata Bank Limited can attract
the retail customer?

Does the CRM have a positive impact on the customer loyalty in
traditional banking?

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 Chapter Two
Literature Review

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2.0 Literature review

Literature review of this research paper will give some idea about the related theoretical
knowledge and studies of the researcher in order to complete the total work. This section of
the proposal will cover some important topics like marketing communication mix, what
communication mix is needed for the company of marketing communication mix & Impact
of marketing communication mix on the behavior of retail customers.

2.1. What is a relationship?

Relationship is around us at each life level, such as in the workplace, domestic and social
place. According Gay et al. (2007) relationships are formed through experiences with
individuals or inside groups. Relationships are the core of human behavior (Gummesson,
2002). However, this study is orientated to relationships in business context thus
relationships were defined differently in their objectives and processes than a personal
relationship. Damkuvienė and Virvilaitė (2007) conducted a study in the relationship
concept and found various definition of relationship in business context from different
authors (see Figure 2.1).

Figure 2.1: The basic elements and conceptions of relationship

Relationship conception Authors, year Basic elements
Relationship is an interaction Hakansson and Snehota, 1995 Interdependence
of mutually committed sides. Commitment
Relationship develops during Interactions
a particular time and is a
chain sequence of particular
actions (episodes of
interaction).
A true relationship reflects a Liljander and Stranvik (1995) Interdependence
situation when both sides Commitment
make commitments to each Repeated interactions
other. The minimum
requirement is to purchase
services at least two times.
Relationships develop during
a particular period of
episodes.
If an organization does not Liljander and Stranvik (1995) Interdependence
feel any consumer response (response)
based on his behavior or
attitude, after the attempts, it
means that no relationship is
present.

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In generally, the relationship exists only when the supplier and buyer know each other (Marandi,
2003) although among various definitions of relationship from various authors in scholarly (Figure
2.1), relationship concept may be interpreted in two ways: behavior relationship and perception
relationship (Damkuviene and Virvilaite, 2007).

Now companies are paying more attention to keep existing customers for long-term,
whereas finding a new customer was more important than paying attention to existing
customers. Indeed, attracting a new costumer might cost five times more than to retain an
existing customer (Kotler & Armstrong, 2014). Therefore, companies shift from a
transaction orientation to a relationship orientation.

2.2. Relationship Marketing

Banks adopted the Relationship Marketing (RM), which is considered opposite to Traditional
Marketing (TM) as TM (marketing mix) focuses on how to get new customers while RM is more
oriented on how to keep existing customers. Gummesson (Gummesson, 2002) defined Relationship
Marketing as “marketing based on interaction within networks of relationships”.

There is still no universally agreed definition of Relationship Marketing (RM). However, a

universally theory was agreed.The main objective of RM is “to establish, maintain and enhance
relationships with customers and other partners, at a profit so that the objectives of the parties
involved are met (Gronroos, 1995). This is achieved by mutual exchange and fulfilment of
promises.” (Marandi, 2003). The relationship marketing‟s focus is to develop relationship with
individual customers - one to one marketing and also by making offers on-measure. This approach is
a contribution of new technologies. (Johnston, 2005)

Therefore, relationship Marketing is not suitable for all customers. Gronroos (2000) cited by Little
and Marandi (2003), observes that there are two categories of customer in the business relationship:
Transactional customers and active or passive relational customers (see figure 2.2). Transactional
customers may not necessarily wish to create relationship with supplier while relational customer
appreciates relationship. Therefore it is necessary to distinguish between the different categories of
customer in order to target effective marketing. That is why the Customer Relationship Management
was adopted.

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Figure 2.2: Relational and transactional customers

Customer mode Customer’s expectations and reactions

Transactional mode Transactional customers are looking for

solutions to their needs at an acceptable price,
and they do not appreciate contact from the
supplier or service provider between purchases.

Active relational mode Active relational customers are looking for

opportunities to interact with the supplier or
service provider in order to get additional value.

Passive relational mode Passive relational customers are looking for the
knowledge that they could contact the supplier
or service provider if they wanted to.

Source: Gronroos, 2000 (from Little and Marandi, 2000)

2.3. Customer Relationship Management

Customer Relationship Management (CRM) is both a business philosophy, which puts

customer at the centre of strategic decision, and a programmatic form of system
implementation (technology or software and process). (Johnston, 2005)

The CRM has been adopted for less than ten years; this new concept has indeed
contributed to the consolidation of the relationship between the company and its clients
(Palmer, 2011) through various components as illustrated by the figure 2.3. It was only
from the late of 1980s and early of 1990s that the relationship between the individual
customer and the supplier has increasingly fortified. (Baran et al, 2008)

15
Companies have realised the benefits of relationship marketing. Therefore, companies
placed the customer relationship among their primary objectives and have orientated
towards the client more than the product.

Figure 2.3: The components of customer relationship management (CRM)

Source: Palmer (2011, p.211)

2.3.1. Objectives of CRM Systems

According to Johnston and Marshall (2010), “CRM enhances the process of securing,
building, and maintaining long-term relationship with profitable customers”. Baran et al
(2008) emphasized that the goal of CRM “is not merely to establish and maintain a
relationship with customers, but rather to increase the strength of the relationship from
acquaintanceship to friendship to partnership”. CRM is a complete customer culture
developing inside the whole organization (Chaffey & Smith, 2012).

CRM allow managers to develop new services, increase the quality of services, reduce
marketing costs, identify and retain profitable customers (Laudon et al, 2012), improve
customer loyalty, and increase thus, the profitability of companies to focus their
communication and marketing expenditures to high-profit customer. Concurrently, reduce
and eliminate excess expenditure on non-profitable customers. (al, 2007). In addition, Baran
et al (2008) emphasised that CRM increases cross selling, thus gets customers to buy other
company products and services. Baran et al (2008) summarise the objectives of CRM as a
systems to:

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▪
Identify potential customers
▪
Understand customer needs (current and latent)
▪
Differentiate profitable from unprofitable customers and segments
▪
Decrease attrition by increasing value and satisfaction
▪
Increase usage of current products and services
▪
Increase customer service and satisfaction
▪
Moving customers from strangers to acquaintances to friends to partners
▪
Integrate marketing and sales efforts throughout the various channels used by the company

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2.3.2. CRM in banking sector

Previously, most banks were more interested in developing the functional characteristics of
their websites, without concern to the relational value that could be generated due to the
interaction between the site and the customer. The main functional characteristics are: the
aesthetics of the site, the quality and quantity of information presented, ergonomics, safety,
financial data, and finally the reliability of the site. Thus most banks tended only to enhance
the functional characteristics of the electronic interface without having an interest that might
use their site as a tool to retain their customers. (Palmer, 2011)

In an environment of customer control (Gibson, 2012), building and maintaining

relationships with customers, suppliers, and partners are more important than a company’s
land, property and financial assets (Persson, 2011). The relationship provides the foundation
of the future business (Goodarzi, 2008). Today, companies have realized the importance of
retaining existing customers. Customer loyalty is one of the major concerns of banks, as
customer loyalty prevents the customers from switching services from one bank to another.
Thus, each bank ensures the continuity of the relationship with its customers. Ensuring
customer loyalties drive to success and survival. Furthermore, a satisfied customer is
himself an efficient in terms of communication to solicit and attract more customers.
Nowadays, the customer is more sophisticated and very demanding (Gibson, 2012). Thus, it
is better to retain and satisfy a customer than to acquire more and not be able to handle them
better. However, the question is how to achieve this loyalty in a competitive environment
where all products and services are alike? The solution that is proposed needs to be effective
in developing a strategy based on a relationship in order to gain customer trust. In this way
customer becomes the centre of many businesses. CRM has become a key strategy for
banking services (Tamilarasan, 2011).

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2.4. Service quality and CRM practice

Service quality is determined as the predominant determinant of customer satisfaction, which

affects customer retention and profitability for the companies (Schneider & White, 2004).
Service quality is also an important element of customer perceptions (Wilson et al, 2008).
Implementation of Customer Relationship Management, which turn customer in the centre, is a
key component in service quality. Over the years researchers observes relationship between
service quality and positive impact on companies profile (Nelson, Rust, Zahorik, Rose,
Batalden and Siemanski, 1992; Asker and Jacobson, 1994) as cited by Zeithaml and
Parasuraman (2004). Furthermore, there is also positive relationship between service quality
and customer loyalty (Zeithaml, Parasuraman, and Berry, 1990; Zeithaml and Parasuraman,
Schneider and White, Jayawardhena, 2004; Szwarc, 2005; Kanning and Bergmann, 2009). In
this way, service quality is considered an important component to retaining customers.

Parasuraman, Zeithaml and Berry, pioneer researcher in the service quality, identified five
specific dimensions of service quality: reliability, responsiveness, assurance, empathy and
tangibles. These five dimensions may be used to represent how costumers evaluate service
quality perceptions. These dimensions are often measured with SERVQUAL. (Fitzsimmons
and Fitzsimmons, 2011)

2.5 Customer expectation

The customers‟ expectations play a crucial role in the assessment of service quality (Zeithaml
et al., 1990). Customers are the sole judges of service quality (Zeithaml, Parasuraman, & Berry,
1991). Customers access service quality by comparing their expectation with their perception of
received services or products. Thus, companies must consistently perform the quality of their
proposed services to meet or surpass the expectation of costumers in order to gain a reputation
for quality service. Understanding customer expectations allow companies to deliver superior
service, and better gain customer satisfaction.

There is variety of factors that affect customer expectations (Ennew and Waite, 2007):

▪
The previous experience of the customer
▪
Third party communication

19
 ▪
Service communication by the company
▪
The values and beliefs of individual consumers

Therefore, a financial services provider may consider that it offers a high-quality service to its
customers and meet their needs at competitive price. However, customers are the ultimate
arbiters of quality, value and satisfaction evaluation.

2.6. Customer satisfaction

Customer satisfaction has been attracted the attention of managers over the past decades
(Riquelme et al, 2009). Managers consider customer satisfaction is critical and positively
influence the profitability of companies. Solomon (2013) pointed out that a high level of
customer satisfaction often has a success and long-term competitive advantage in companies.
Moreover, Ennew and Waite (2007) observed that responding to and satisfying customer needs
can enhance the performance of an organization.

Oliver (1997, p13) defined the concept of satisfaction as follow: “Satisfaction is the consumer’s
fulfillment response. It is a judgment that product or service feature, or the product or service
itself, provided (or is providing) a pleasurable level of consumption-related fulfillment,
including levels of under-or over fulfillment.” Furthermore, Wilson et al (2008) added that
fulfillment happened when one’s needs have been met, thus satisfaction is based on thoughts
and feelings (Hoyer, 2010). Example satisfaction can be viewed as feelings of pleasure,
happiness, delight, contentment, etc. through positive experiences associated with the product
or service. Customer satisfaction may evolve over the time and influenced by a variety of
factors. It may depend on experience cycle of the customer. Though the service cycle, the
consumer may have different experience, good or not good, which will probably impact
satisfaction.

2.7 Customer loyalty

Loyalty in a business context is defined as a favorable attitude towards a brand (Palmer, 2011)
and a customer’s willingness to continue buying from a firm over long-term (Lovelock and
Wirtz, 2011), and providing positive word-of-mouth (Lovelock et al, 2009). Authors likes
Zeithaml, Berry, & Parasuraman (1996); Andreassen & Lindestad (1998); Selnes & Hansen
(2001) also confirmed (Xu et al, 2011). Loyalty as also defined by Kaur et al (2012) as a repeat
purchase action from consumers.
Numerous statistical studies showed that repeat purchase is a random phenomenon. Customer
loyalty can be an important factor for the development of companies. Furthermore, building
customer loyalty can avoid customers to switching to competitors (Johnston & Marshall, 2010).
Therefore, customer loyalty is an effective tool that banks can use to gain sustainable
competitive advantage. Knox and Dension (1992) had studied supermarket customers and
identified that customer switch loyalty to providers offering the best deal (Johnston R. , 2005).
 Chapter Three
An overview of Janata Bank Limited
3. An overview of Janata Bank Limited

3.1. Beginning of Banking in Bangladesh

After independence the Government of Peoples Republic of Bangladesh was formally to cover
the charge of the administration of the territory now constitute Bangladesh. In an attempt to
rehabilitate the war-devastated banking of Bangladesh, the government promulgated a law
called Bangladesh Bank (temporary) order, 1971 (Acting President’s Order No.2 of 1971). By
this order, the State Bank of Pakistan was declared to be deemed as offices, branches and assets
of Bangladesh Bank. On that date there existed 14 scheduled banks with about 3042 branches
all over the country.

On the 16th December, 1971, there existed the following 12 banks in Bangladesh, namely:

1. National Bank of Pakistan 7. Union Bank Limited

2. Bank of Bahwalpur Limited 8. Muslim Commercial Bank Limited
3. Premier Bank Limited 9. Standard Bank Limited
4. Habib Bank Limited 10. Australasia Bank Limited
5. Commerce Bank Limited 11. Eastern Mercantile Bank Limited
6. United Bank Limited 12. Eastern Banking Corporation Limited

3.2. Nationalization of Banks in Bangladesh

Immediately after the liberation war in 1971, Government of Bangladesh consolidated banks
authority and decided to adopt socialist pattern of society as its goal. Hence in order to
implement the above mentioned state policy; the Government of Bangladesh decides to
nationalize all the banks of the country accordingly on the 26th March, 1972, Bangladesh
Banks (Nationalization) Order, 1972(President order No. 26 of 1972) was promulgated.
The undertakings of existing banks specified in the 1st column of the table below stands
transferred to and vested in, the new banks mentioned in the 2nd column of the said table:

Nationalization of Banks:
Existing Bank New Bank

1. National Bank. Sonali Bank.

2. Bank of Bahwalpur Limited
3. Premier Bank Limited

4. Habib Bank Limited Agrani Bank.

5. Commerce Bank Limited

6. United Bank Limited Janata Bank.

7. Union Bank Limited

8. Muslim Commercial Bank Limited Rupali Bank.

9. Standard Bank Limited
10. Australasia Bank Limited

11. Eastern Mercantile Bank Limited Pubali Bank.

12. Eastern Banking Corporation Limited Uttara Ban

3.3. Profile of JBL

Janata Bank, one of the largest commercial bank in the country, was established under
Bangladesh Bank (Nationalization) Order 1972 (Presidency Order of 1972). By taking over
branches of former United Bank Limited and Union Bank Limited, were two private banks
performing class banking over the country. After the birth of Bangladesh on 16th December
1971, newly formed Janata Bank for mass banking got special facilities from the government
to work as nationalized commercial bank all over the country. With the increase of
responsibility and by virtue of performance within a few years, it becomes the largest
commercial bank of the country with 906 branches including 4 overseas branches at United
Arab Emirates. It is linked with 1239 foreign correspondents all over the world. Total
employees of JBL are more than 14 thousands (14,244). Its head office located at Janata
Bhaban at Motijheel C/A, the heart of the capital city, Dhaka.
3.3.1. Corporatization
In 15 November, 2007 Janata Bank got registered with the Joint Stock of Registrars and
restructured it as a public limited company with the name Janata Bank Limited.

List of Branches:

Local Office 1
Special Corporate Branch 1

Corporate-1 Branch 28

Corporate-2 Branch 77

Overseas Branch 04

Grade-1 Branch 218

Grade-2 Branch 224

Grade-3 Branch 277

Grade-4 Branch 82

Total Branches : 912

Figure: 1. JBL Branches

3.3.2. Corporate Information

Name of the Company Janata Bank Limited

CEO & Managing Director Md. Abdus Salam

Legal Status Public Limited Company

Registered Office Janata bhaban 110, Motijheel Commercial Area,

Dhaka, Bangladesh

Deposit (31.12.2017) Tk. 649,440.78 million

 Authorized Capital (31.12.2017) Tk. 30,000 million

Paid up Capital (31.12.2017) Tk. 19,140 million

Operating Profit (31.12.2017) Tk. 11,369.48million

Face value per share BDT 100 per share

Total asset (2017) Tk. 805,988.41million

Number of Branches 912 br. including overseas branches at U.A.E

Subsidiary Companies 1. Janata Capital and Investment Company Limited

2. Janata Exchange Company SRL, Italy

Phone Number 9551337, 9565384, 9567675, 9560000, 9560027-30

SWIFT JANB BD DH

Website www.janatabank-bd.com

3.4. Awards and Achievements

Recently The Bank has been recognized internationally and domestically for its good
performance. Few of these recognitions are given below:

▪ Best Presented Annual Report Awards and SAARC Anniversary

Awards for Corporate Governance Disclosers 2013

The awarding ceremony was held on 4th December 2014 at hotel Mayfair, Bhubaneswar,
India. Dr. Prodip Kumar Panigrahi, minister of State, Higher Education, Science and
Technology Ministry of Udisha, India, handing over South Asian Federation of Accountants
(SAFA) award to Md. Mosaddake-Ul-Alam, company secretary of Janata Bank Limited
▪ 14th ICAB National Award for Best Presented Annual Reports 2013
The Institute of Chartered Accountants of Bangladesh (ICAB) awarded Janata Bank Limited
with the ICAB National Awards for best presented annual reports in 2013 and in the category
of public-sector bank Janata Bank Limited secured first position. In the category of corporate
governance disclosure, Janata Bank Limited was awarded second position by the same
institution.

▪ ICMAB Best Corporate Award

This Bank secured the first position among the state owned Commercial Banks in Bangladesh.
The Institute of Cost and Management Accountants, Bangladesh (ICMAB) recognized the
achievements of Janata Bank Limited with the following awards: ICMAB Best Corporate
Award 2014, ICMAB Best Corporate Award 2012,ICMAB Best Corporate Award 2011

3.5. Management
Janata Bank is the largest commercial bank of the country. It has 906 branches throughout the
country and abroad to serve the nation. There are 4 overseas branches at U.A.E. The Head
Office of the bank is located at Janata bhaban 110 Motijheel C/A, Dhaka. It has 15 GM, 77
DGM 192 AGM, 576 First AGM, 1037 SEO, 3085 EO and 460 AEO. Principal Offices are
headed by First AGM and each department is headed by AGM.

Head Office
↓
G.M. Office
↓
Area Office
↓
Regional Office
↓
Branch

Figure: Functional Hierarchies

3.6. Vision
To become the effective largest commercial bank in Bangladesh to support socio-
economic development of the country and to be a leading bank in South Asia.

3.7. 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.

3.8. Objectives

The objectives for which the bank is established as follows:

▪ To carry on, transact, undertake and conduct the business of banking in all branches.

▪ Full implementation and utilization of the Bank’s excellence program which aims to
provide services to customers.

▪ To carry on business as financiers, promoters, capitalists, financial and monitory agents,

concessionaires and brokers, dealing in exchange, securities and all kinds of mercantile
banking etc.
 Chapter Four
Products and Services Offered by JBL
4. Products and Services offered by JBL

4.1. Personalized Service

Janata Bank Limited extends all the major personal banking facilities and services to its
customers with its skilled manpower and largest network of around 906 branches covering all
the urban and remote rural areas of Bangladesh.

Janata Bank Limited provides Local and Foreign Remittance in the quickest possible time.
Foreign Remittance is available in both T.C and taka draft.

1. Transfer of fund from one branch to another by

- Demand Draft saving A/C
- Mail Transfer FDR A/C
- Telegraphic Transfer Trade Finance
2. Transfer of fund on Standing Instruction Agreement
3. Collection of cheques through clearing house.
4. Issuance of payment order.
5. Locker facilities for safe keeping of valuable.
6. Corporate client services with computerized systems at selective branches.

4.2. Deposit schemes section

Bank is the largest organization of mobilizing surplus domestic savings. For poverty
alleviation, we need self-employment, for self-employment we need investment and for
investment we need savings. In the other words, savings help capital formations and the capital
formations help investments in the country. The investment in its turn helps industrialization
leading towards creation of wealth of the country. And the wealth finally takes the country on
road to progress and prosperity. As such, savings is considered the very basis of prosperity of
the country. The more the growth of savings, the more will be the prosperity of the nation.

The savings rate in Bangladesh is one of the lowest in the world rate of domestic saving being
17.78 %. In order to improve the savings rate, Financial Institutions responsible for
mobilization of savings should offer attractive Savings Schemes so that the marginal propensity
to save increases. The savings do not, of course, depend only on the quantum of income but
largely depend on the habit of savings of the people.
4.3. Utility Service
Besides normal banking operation, Janata Bank Limited offers special services to a large
number of clients/agencies throughout the country. Under the network of utility service,
customers of different govt. organizations, corporate bodies, local bodies, educational
institutions, students, etc are continuously getting benefits from the Bank.

4.4. Bill Collection

 Electricity bills of Dhaka Electricity Supply Authority, Dhaka Electricity
 Company, Bangladesh Power Development Board and Rural Electrification Board
 Telephone bills of Telegraph and Telephone Board
 Water/Sewerage bills of Water and Sewerage Authority
 Municipal holding tax of City Corporation/Municipalities
 A pilot scheme is underway to provide personalized services to our clients

4.5. Payments Made On Behalf Of Govt. To:

 Non- Govt. teachers’ salaries

 Girl Students scholarship/stipend & Primary Student Stipend

 Army pension

 Widows, divorcees and destitute Women Allowances

 Old-age Allowances

 Food procurement Bills

The following branches of Janata Bank Limited have collected utility bills (e. g. Electricity,
Telephone, Gas, WASA etc from customers through agents for payments against fixed service
charges.

4.6. One Stop Service

Janata Bank Limited, first among the Nationalized Commercial Banks in Bangladesh, has
introduced One Stop Service. The salient features of this system are as under:

▪ A customer can deposit and withdraw money from a single counter.

 ▪ The system of Token and Scroll has been discontinued.

▪ Customers are getting prompt and personalized services from a single counter.

▪ Verification of signature is easy as the same is stored in the Computer.

4.7. Online and ATM Service

Times have changed and technological boom has given the businesses superlative edges over
the manual and traditional functionalities of business operations. So the bank business in
Bangladesh has overwhelmingly changed with the introduction of online banking in bank
business. Janata Bank Limited has also stepped into the world of online banking and is rapidly
progressing in implementation of online banking through Core Banking System (CBS). Up to
January, 2015 total 174 branches out of 904 branches have been brought under CBS and as
planned all the branches will be brought under this system by 2016. Introduction of CBS in 114
branches of the Bank has already had encouraging impact on its business and full
implementation of it will definitely have tremendously positive impact on customer services
and business growth.

Janata Bank Limited, first among the Nationalized Commercial Banks in Bangladesh, has
introduced One Stop Service. To facilitate the foreign exchange service, Janata Bank has
launched Janata bank first among the nationalized commercial bank, has introduce Janata bank
Q-Cash ATM service system in its 25 branches. The bank charged 500 taka as annually fee.
Card holder can enjoy the facilities of all ATMs of Q-Cash Network member Banks and 2
Network Sharing Banks; BRAC Bank Limited and Dutch Bangla Bank Limited. The bank has
taken a plan to launch shared ATM system in various important places.
4.8. Financing on Export
To boost up country's Export, Janata Bank Limited has been providing different kinds of
assistance to exporters. Some of which are as under:-

 Providing Pre-Shipment and Post-Shipment Finance, Export Guarantee and bonding facility etc.
 Concessional rate of interest for exports Finance.
 Export incentive Program.

4.8.1. Banking at Export Processing Zone


Scope for establishment of export oriented industry by 100% foreign investment and by joint-
venture

The sole bank to disburse Government Export Promotion Fund against export of Computer
Software & Data Entry Processing.

Undergone to an agreement with Bangladesh Bank to obtain fund from Government
EEF (Equity & Entrepreneurship Fund) to build up entrepreneur's equity.

4.8.2. Facilitating Import

Through quite a good number of Authorized Dealer Branches and 1229 nos. foreign
correspondents worldwide Janata Bank Limited has been extending full range import and
relevant finance facilities.

▪
Opening of L/C at competitive/ reasonable margin and commission
▪
Interest at concession rate on import finance to the prime customers & interest rebate facilities

4.9. Financing on SME’s

Janata Bank Limited has been financing Small and Medium Enterprises with a view to
developing a balanced and dynamic industrial sector having a strong base of SMEs throughout
the country. From the very inception of Industrial credit financing of Janata Bank (Currently
Janata Bank Limited) SME division has sanctioned term loan in small and medium industries
sector in 4535 projects of taka 941.36 cores. Among which taka 548.69 cores has been
disbursed against 4310 projects. Outstanding as 31.12.2007 is taka 446.12 core and recovery of
loan is 70%.
4.10. Foreign Remittance Service
Janata Bank Limited has a network of more than 906 domestic branches in Bangladesh
covering whole of the country including the rural areas. Remittance services are available at all
branches and foreign remittances may be sent to any branch by the remitters favoring their
beneficiaries. Remittances are credited to the account of beneficiaries instantly or within
shortest possible time. Janata Bank Limited has correspondent banking relationship with all
major banks & exchange houses located in almost all the countries/cities. Expatriate
Bangladeshis may send their hard earned foreign currencies through those banks & exchange
houses or may contact any renowned banks nearby ( where they reside/work) to send their
money to their dear ones in Bangladesh.

"To resolve the foreign remittance related problem/complain/enquiry, Janata Bank Limited has
a 'Complain cell' at its Overseas Banking Division, Head Office, Dhaka. All Concerned are
requested to contact at the following address to resolve any problem related to foreign
Remittance."
Chapter Five
Methodology
5. Methodology of the Study

5.1. Approach

From educational background, every one learned different methodology in research process.
Therefore, in this study, in the organization synopsis part information is presented in a
Descriptive manner. Both the primary as well as the secondary form of information was used to
prepare the report. The details of these sources are highlighted below:

5.2. Target population

The target Population will be the clients who do their personal banking in Janata Bank Limited
at Aminbazar Branch.

5.3. Primary Source

The data is used for first time or not used before is called primary data. Primary data collected
from the retail customers by their views, opinion, comment etc. The primary data will be
collected by interviewing both the relationship managers by the process assigned by Janata
Bank Limited and the retail customers of this branch. Primary data will be mostly derived from
the discussion with the relationship officers & through surveys on the retail customers of Janata
Bank Limited Aminbazar Branch.

5.4. Secondary sources

The data is used before is called secondary data. These kinds of data are collected from relevant
books, newspapers, journals, websites, magazines etc. In this report the secondary data is
collected from
 Annual Report of Janata Bank Limited
 Annual Report of Bangladesh Bank
 Various Journals and Websites
5.5. Sample size

A sample is a subgroup or subset of the population. The number of items or units included in
the sample is technically called the sample size. In this report the sample is 48 retail customers
from Janata Bank Limited Jatrabari Commercial Branch. Non-probability judgmental sampling
is used in this report.

5.6. Methods of data collection

For this report Direct Interview method is used where I have taken interview from various retail
customers of the branch. Mall-intercept personal interviews are used in this report.

5.7. Sampling Method

Non probability sampling (Judgmental sampling) method is used because all the time the retail
customers were not much interested to talk and provide data and basically the data were
collected from some respondents from Janata Bank Limited, Aminbazar Branch and also from
the respondents who are treated as retail customers of the branch.
 Chapter Six
Findings and Analysis
6. Findings and Analysis

6.1. Lesson Learned From Internship program

On the basis of previous analysis and practical experience of 3 months internship program, the
following skills that I learned during the internship period:
We know that General Banking is the starting point of all the banking operating task. For that
reason I was concentrated myself in this section during my internship and with that part I tried
my best to capture the retail customers and analyze them.
I learned that most of the account holders of Aminbazar Branch are general account holders and
most of the times they involve in the retail/personal transaction section as the people in the
region are not much affluent.
I also learned about different types of requirements that are varies based the type of customers
such as… for Sole Proprietorship valid registration card, tin certificates are required, for
partnership, Partnership Deed and Partners letter of authority to open account and authorization
for operation are specially required.
This Internship developed my skills in the application of theory to practical work situations, to
cope with new environment, treat different types of customers and understand interpersonal
relationship.
I have analyzed the JBL’s SWOT of providing better services to the retail customers.

6.2. SWOT analysis

Each and every organization should be aware of their strengths, weaknesses, opportunities and
threats. This analysis is known as SWOT analysis. SWOT analysis explains environment of an
organization in two broad ways. They are:
 Internal Environment Analysis: It includes strengths and weaknesses
 External Environment Analysis: It includes opportunities and threats

The acronym for SWOT stands for

▪ STRENGTH
▪ WEAKNESS
▪ OPPURTUNITY
▪ THREAT
The SWOT analysis comprises of the organization’s internal strength and weaknesses and
external opportunities and threats. SWOT analysis gives an organization an insight of what they
can do in future and how they can compete with their existing competitors playing in the same
field and also used in the strategic analysis of the organization.

STRENGTHS

As a large bank, it has qualified and experienced manpower. Branch location is suitable
for retail customers.

Bank’s assets position is quite satisfactory and now there is no fund crisis.

Bank has requisite wealth to sustain in the various challenges of market economy

Being a nationalized banking organization, it always gets government support in all of its
operations.

WEAKNESS

As many employers retired from the bank, there is a crisis for manpower in the bank.
Bureaucrat official process hampered the daily internal workflow.

Lack of motivation for the workers

Low salary structure for the employees.

In some cases management-employee relation is not good.

OPPURTUNITIES

Expansion of new investment areas.

Scope for automation will open a big door of opportunity.

In case of fund crisis Janata Bank gets government support.

The bank undertakes need-based training program.

THREATS

 Newly developed privatized and foreign banks.

 Facing a great competition with other commercial banks and financial institutions.
 Loan recovery systems are very weak.
 Policies are not practiced properly.
6.3. Limitations and Challenges
Since the report is concerned with the retail services to the retail customers of Janata Bank
Limited at Aminbazar Branch, A lot of information could not obtain because the bank was not
interested to disclose their information, policy, and data to maintain their secrecy. I had to
depend on the websites of the respective bank for much information. There are certain
limitations regarding the studies that are summarized below:

 Theoretically there are so many factors to be observed before analyzing such type of
study. Those kinds of information are very confidential and it is absurd for me to check
all these information within only three months.
 Branch was going through renovation process, which was hampering the working
environment.
 Officers are busy with their respective works. Many of them have truly failed to manage
time to have a talk with me about his work in the desk.
 One of the major limitations is the time constraints.
 Confidentiality of data was another important barrier that was faced during the conduct
of this study. Every organization has their own secrecy that is not revealed to others.

6.4. Findings
Janata Bank has focused on enhancing the long term sustainability of the bank, building value
for the shareholders, employees and the wider community. Its activities are driven by ethical
business practices and sense of responsibilities to all stakeholders. Since the start of the global
economic crisis, many felt that Bangladesh will not be adversely affected by the crisis. But now
we can see that slowly and gradually we are also getting affected. Bangladesh is captive to what
transpires in international market and economies of leading countries. Against the background
Bangladesh cannot be immune from the global economic slowdown and is most likely to be
affected sooner or later. The global financial crisis is likely to adversely affect principally in
three sectors, namely exports, aid-flow and foreign direct investment. During my report
preparation I have gone through several departments of General Banking and saw how the
Prime customers are being served and detected some problems from my own practical
experience as follows:
 ❖
Lengthy processes of issuing cheque book, Pay order, Bank draft etc are often very
disgracing for the clients. Job responsibilities are not specified to each and every
employee of this division.
❖
Insufficient modern sophisticated technology change such as use of new software there
are few staff who are lacking in computer knowledge and are not efficient enough to
finish every task immediately. So, before utilizing new technology proper training
should be arranged.
❖
Inadequate skilled manpower in Janata bank Limited, because there is lack of proper
training arrangement of employees in the general banking section. For example, most of
the new recruited employees learn their job tasks by observing their senior employee.
❖
Insufficient forms and brochures will hamper customer service.
❖
Still heavily rely on traditional system specially in general banking department.

For all the above reasons the retail services are sometimes hampered but they are doing very
well in the case.

6.5. Response Analysis

I have tried to cover a lot of retail customers but most of them are unwilling to provide
response to the questions but I was able to collect 48 responses from the clients about their
Prime services.

6.5.1. Demographic Questions analysis

The demographic analysis of the study includes the following distributions: gender, occupation,
experience with JBL, account type, so on.

Gender:

The distribution of respondents’ gender revealed that out of 48 respondents 25(51.5%) are male
and rest 23(48.5%) are female. Graphical presentation is given below:
 Gender Frequencies Percentage

Male 25 51.5

Female 23 48.5

Total 48 100

Table of Frequencies and Percentages

Age:

From the total respondents 28(58%) are between 26-40 years old. Among the total 14 person
was between 41-55 years old. There are 4 people who were below 25 years old and 2 person
who were above 55 years old. Graphical presentation is given below:

Below 25 years
26- 40 years
41- 55 years
Above 55 years
Experience with Janata Bank Limited:

Furthermore, data gathered on the customers’ experience with the bank revealed that 13 (27%)
respondents related with the bank for 5-10 years, while 7 (13%) respondents operated with the
bank for 10-15 years. As indicated in below table, 5 (11%) respondents operated with for 10-
15 years. Most of the respondent (49%) operated with JBL below 5 years.

Time of Experience Frequencies Percentage

Below 5 years 23 49%

5-10 years 13 27%

10-15 years 07 13%

Above 15 years 05 11%

Total 48 100%

Table of Frequencies and Percentages

Types of Account:
Customers selected for the study were asked to state the type of accounts they operate with the
bank. In response, 21 (44.4%) respondents are operating savings account. Some of them have
salary accounts and Islamic accounts while 17 (34.3%) respondents indicated that they
operated current account and these are mainly company account. Meanwhile, 10 (22.2%)
respondents stated that they operated other accounts such as loan accounts. Graphical
presentation is given below:

Types of Account Frequencies Percentages

Current Account 21 34.3%

Savings Account 17 44.4%

Fixed Deposit Account 10 22.2%

Total 48 100%
6.5.2. Response Analysis from the Clients

I have tried to cover a lot of Retail Customers of JBL, Aminbazar Branch but most of them are
unwilling to provide response to the questions but I was able to collect 48 responses from the
clients about their Retail services. In this study, responses from the retail customers were tried
to find out based on three variables along with several statements.

Service quality: According to your experience with the bank, Customers put their mark
as to following the factors

1.Janata Bank Limited focuses on Individual attention

In response of the Statement 1 about the individual attention of Janata Bank 13 percent clients
were strongly agreed because they said they are getting such type of benefits smoothly.26
percent clients were agreeing with the statement and they said that they most often get the
service extra from others and scheme is very flexible. But a big amount, 35 percent clients were
silent in response because they said that sometimes the branch focus on them individually and
sometimes it is not. On the other hand almost 17 percent are disagreeing with the statement as
they claim that they are not getting such type of personal focus from the Janata Bank Limited
And 9 percent people were strongly disagreeing with others. They thought that they can get
better attention from other banks and Janata Bank should change its looks towards retail
customers.
2.Janata Bank Limited operates their services in flexible hours.

In response of the question 2 about the operation of their services in flexible hours, 19 percent
clients were strongly agreed because they said they are getting such type of flexible timing as
they desired.38 percent clients were agreeing with the statement and they said that they most
often get their services in flexible hours for them than the others.22 percent clients were silent
in response because they said that the facilities is similar with the others. But almost 14 percent
are disagreed with the statement as they claim that they are not getting the flexible service
hours at Janata Bank than the others are offering. And 19 percent people were strongly
disagreeing with others in case of flexible time also. They thought that they can get better
timing facilities from other banks and Janata Bank should change the time into more flexible
one.

3. JBL employees can understand the specific needs of customers.

In response of the question 3 about the service charge by the Janata Bank 10 percent clients
were strongly agreed because they said their specific needs are perfectly understand by the
bank
employees.46 percent clients were agreeing with the statement and they said that employees
most often can understand the specific needs of the customers than the others. 26 percent
clients were silent in response because they said that the rate is similar with the others. But
almost 15 percent are disagreed with the statement as they claim that they are not properly
understood by the employees than the others are offering. And only 3 percent people were
strongly disagreeing with others in case of this statement. They thought that they can get better
understanding from other banks.

4. Customer also helps to feel importance themselves

In response of the statement 4 about customers participation to get proper services by the Janata
Bank 11.1 percent clients were strongly agreed because they said they can help the employees
to fell importance themselves as they desired.42.4 percent clients were agreeing with the
statement and they said that they most often can helps the employees to provide proper
information get the information very.32.3 percent clients were silent in response because they
said that they were not much familiar with the question. Almost 11.1 percent are disagreed
with the statement as they claim that they don’t seem they can help the employees for getting
their services. Only 3.1 percent people were strongly disagreeing with others in case of
information giving. They thought that they cannot help to get better information from other
banks.
Customer interaction management: State the level of effectiveness of the branch
5. Janata Bank Limited has the ability to recognize individual

In response of the question 5 about providing the information about the accounts by the Janata
Bank only 8 percent clients were strongly agreed because they said they believe JBL has the
strong ability to recognize individual.37 percent clients were agreeing with the statement and
they said that JBL most often has the ability to recognize individual than the others.32 percent
clients were silent in response because they said that they were not much familiar with the
service. Almost 20 percent are disagreed with the statement as they claim that they are not
getting any proof and unable to have response to any claim from Janata Bank than the others.
Only 3 percent people were strongly disagreeing with others in case of responses to the ability
of recognize individuals.

6. JBL executives has the Quality to gather interpersonal traits

In response of the question 6 about providing the quality of gather interpersonal traits by the
Janata Bank 6 percent clients were strongly agreed because they said they are getting such type
of behavior and service as they desired. 46 percent clients were agreeing with the statement
and they said that they most often get the services very customized for them than the others and
said that the staff behavior is very well. 31 percent clients were silent in response because they
said that they were not actually thinking about these. Almost 15 percent are disagreed with the
statement as they claim that they are not getting any kind of approach to gather interpersonal
traits from Janata Bank than the others. And only 2 percent people were strongly disagreeing
with others in case of service of the staff giving. They thought that they can get better service
from other banks.

7. JBL employees have skill to influence

In response of the question 7 about the skills of the employees of the Janata Bank 8 percent
clients were strongly agreed because they said that JBL employees are skilled enough as they
desired.43 percent clients were agreeing with the statement and they said that they most often
meet with the employees who are skilled enough than the others and said that the staff behavior
is very well.25 percent clients were silent in response because they said that they were not
actually thinking about these. Almost 16 percent are disagreed with the statement as they claim
that the employees are not skilled enough than the others. And only 8 percent people were
strongly disagreeing with others in case of the skill of JBL employees. They thought that they
can get better service from other banks.
8. JBL has the ability to maintain promises
In response of the question 8 about maintain promises what JBL offer to their customers.5
percent clients were strongly agreed because they said they are getting such type of behavior
and service promptly as they desired.43 percent clients were agreeing with the statement and
they said that JBL most often has the ability to maintain promises than the others and said that
the staff behavior is very well.36 percent clients were silent in response because they don’t
give much value to the JBL promises. Almost 14 percent are disagreed with the statement as
they claim that JBL don’t keep any promises like the others. And only 2 percent people were
strongly disagreeing with others in case of keeping promises by JBL executives. They thought
that they can get better service from other banks.

9. JBL has User friendly service skills

In response of the question 9 about providing user friendly service skills by the Janata Bank 10
percent clients were strongly agreed because they said they are getting user friendly service
skill as they desired.38 percent clients were agreeing with the statement and they said that they
most often get the user friendly service skill for transaction very customized for them than
others.
Almost 36 percent clients were silent in response because they said that they do not much think
about user friendly service skill. 11 percent are disagreed with the statement as they claim that
they are not getting any user friendly service skill from Janata Bank than the others. And only 5
percent people were strongly disagreeing with others in case of transaction giving. They
thought that they can get better user friendly services from other banks.

10. JBL has ability of intractability with customer

In response of the question 10 about providing the information about the ability of intractability
with customers by the Janata Bank Only 13 percent clients were strongly agreed because they
said they are getting such type of services as they desired.36 percent clients were agreeing with
the statement and they said that they most often get the services very customized for them than
the others tough the frequency is very low. 36 percent clients were silent in response because
they said that they don’t give much importance on intractability with customers. But 12 percent
are disagreed with the statement as they claim that they are not getting any service better from
Janata Bank than the others. And only 3 percent people were strongly disagreeing with others
in case of intractability with customers. They thought that they can get better service from other
banks.

Customer retention management: State the level of effectiveness of the branch

11. JBL has innovative customer service

In response of the question 11 about providing innovative customer services by the Janata Bank
9.1 percent clients were strongly agreed because they said they always get something new as
they desired. 34.3 percent clients were agreeing with the statement and they said that they most
often get the services very customized for them than the others and said that the staff behavior
is very well. 23.2 percent clients were silent in response because they said that sometimes they
get innovative services, sometimes not. But 23.2 percent are disagreed with the statement as
they claim that they do not get any innovative services from JBL than the others. And 10.1
percent people were strongly disagreeing with others in case of service innovation of JBL.
They thought that they can get better service from other banks.

12. JBL always takes Customer’s Centric approach

In response of the question 12 about the approach by the Janata Bank 10 percent clients were
strongly agreed because they said that JBL always takes customer’s centric approach as they
desired. 36 percent clients were agreeing with the statement and they said that they most often
get customer centric approach on its operation than the others. 27 percent clients were silent in
response because they said that sometimes they get innovative services, sometimes not. But 22
percent are disagreed with the statement as they claim that they do not get any customer’s
centric approach from JBL than the others. And only 7 percent people were strongly
disagreeing with others in case of their operation approach. They thought that they can get
better service from other banks.
14. JBL always tries to new technology

In response of the question 14 about providing innovative technologies by the Janata Bank 21
percent clients were strongly agreed because they said they always get something new
technologies as they desired. 28 percent clients were agreeing with the statement and they said
that they most often get the technologies very customized for them than the others.

23 percent clients were silent in response because they said that sometimes they get innovative
technologies, sometimes not. But 23 percent are disagreed with the statement as they claim
that they do not get any innovative technologies from JBL than the others. And 5 percent
people were strongly disagreeing with others in case of technologies innovation of JBL. They
thought that they can get better service from other banks.
13. JBL has good complaint Management process

In response of the question 13 about complaint management process of JBL 14.1 percent
clients were strongly agreed because they said they always get the desired solution of any kind
of problem. 29.3 percent clients were agreeing with the statement and they said that they most
often get the proper solution of their complain in a easiest ways than the others. 36.4 percent
clients were silent in response because most of the retail customer doesn’t want to complain for
the bed services. But 15.2 percent are disagreed with the statement as they claim that they do
not find any procedure of complaint management than the others. And 5 percent people were
strongly disagreeing with others in case of complaint management process of JBL. They
thought that they can get better service from other banks.

15. JBL takes low Charges (Assurance fee)

In response of the question 15 about charges taken by the Janata Bank 28 percent clients were
strongly agreed because they said JBL takes low charges from them as they desired. In a big
amount, almost 41 percent clients were agreeing with the statement and they said that they
most often pay the services charges lower than the others and said that the staff behavior is very
well. 25 percent clients were silent in response because they don’t want to compare it with
others. Almost 4 percent are disagreed with the statement as they claim that they paid more
charges than the others. And only 2 percent people were strongly disagreeing with others in
case of several service charges of the staff giving. They thought that they can get better service
from other banks.
6.5.3. Data Analysis by SPSSS:
Analytical Model:

A mathematical model is developed for my research. I have to use multiple regression equation
to identify as well as analyze the dependent and independent variables. There are total three
variables consist of two independent variables and a dependent variable. The mathematical
model is bellow-

Y= X1 + X2 + X3 + X4 + X5 + X6 + C

Here,
Y= Dependent variable, which is customer relationship management on retail banking
X1= Customer Interaction Management (Independent variable)
X2= Customer Retention Management (Independent variable)
C= Constant which is consist of all other independent factors.

Descriptive Statistics
Mean Std. N
Deviation
Customer Relationship
3.39 .676 48
Management
Customer Interaction
3.30 .528 48
Management

Customer Retention
3.37 .745 48
Management

Interpretation: We can see the total mean value and standard deviation of Dependent variable
3.39 and .676 respectively. The mean value and standard deviation of independent variables are
3.30, 3.37 and .528, .745 respectively.
Correlations
Customer Customer Customer
Relationship Interection Retention
Management Management Management
Customer Relationship
1.000 .400 .403
Management
Pearson Customer Interection
.400 1.000 .598
Correlation Management
Customer Retention
.403 .598 1.000
Management
Customer Relationship
Sig. (1-tailed) . .000 .000
Management
 Customer Interection
.000 . .000
Management
Customer Retention
.000 .000 .
Management
Customer Relationship
48 48 48
Management
Customer Interection
N 48 48 48
Management
Customer Retention
48 48 48
Management

Interpretation: We have developed a hypothesis to measure co relationship between customer

relationship management and Customer interaction management along with customer retention
management.

Ho= Customer interaction management and customer retention management do not affect
customer relationship management

H1= Customer interaction management and customer retention management affect customer
relationship management.
When Pearson’s is close to 1 that means there is a significant relationship between two
variables. That means we should reject the null hypothesis. When the Pearson’s is close to 0
that means there is no significant relationship between two variables. That means we should
accept the null hypothesis.

If the Sig(2-Tailed) value is greater than .05, that means there is no significant relationship
between two variables. That means we should accept the null hypothesis

If the Sig(2-Tailed) value is less than .05, that means there is significant relationship between
two variables. That means we should reject the null hypothesis

In the above table, we can see that the correlation coefficient for customer interaction
management and customer relationship management level is .400 which is significant. Since
the p value (.000) is less than .05 so we should reject the null hypothesis. It proves that
customer interaction management has strong impact on customer relationship management.
In the above table, we can see that the correlation coefficient for customer retention
management and customer relationship management level is .403 which is significant. Since
the p value (.000) is less than .05 so we should reject the null hypothesis. So, customer
retention management has strong impact on customer relationship management.

Model R R Square Adjusted R Std. Error of

Square the Estimate

1 .450 .202 .186 .610

Model Summary
a. Predictors: (Constant), Customer Retention
Management, Customer Interaction Management

b. Dependent Variable: Customer Relationship

Management
ANOVA
Model Sum of df Mean F Sig.
Squares Square

1 Regression 9.133 2 4.567 12.289 .000

Residual 36.044 97 .372

Total 45.177 99
a. Dependent Variable: Customer Relationship Management
b. Predictors: (Constant), Customer Retention Management, Customer
Interaction Management

Interpretation: The table indicates that the regression model predicts the dependent variable
significantly well. We can understand this by seeing the significant level as the significant level
is less than .05. We can also realize that there is a significant relationship between dependent
and independent variable by seeing the F value.
Collinearity Diagnostics
Model Dimension Eigenvalu Condition Variance Proportions
e Index (Constant) Customer Customer
Interection Retention
Management Management
1 2.966 1.000 .00 .00 .00
1 2 .024 11.217 .43 .01 .71
3 .011 16.781 .56 .99 .28
a. Dependent Variable: Customer Relationship Management

Residuals Statistics
Minimu Maximu Mean Std. N
m m Deviation
Predicted Value 2.29 4.03 3.38 .304 48
Std. Predicted Value -3.593 2.122 .000 1.000 48
Standard Error of
.061 .257 .100 .033 48
Predicted Value
Adjusted Predicted
2.36 4.03 3.38 .304 48
Value
Residual -1.776 1.413 .000 .603 48

Std. Residual -2.913 2.318 .000 .990 48

Stud. Residual -2.931 2.407 .001 1.007 48

Deleted Residual -1.809 1.524 .001 .624 48

Stud. Deleted Residual -3.055 2.470 -.002 1.023 48

Mahal. Distance .004 16.605 1.980 2.285 48

Cook's Distance .000 .151 .012 .025 48

Centered Leverage
.000 .168 .020 .023 48
Value

a. Dependent Variable: Customer Relationship Management

Chart
 Chapter Seven

Concluding Statement and

Recommendations
7.1. Recommendation
In the course of the research study the ration of switching Janata Bank Limited is very
alarming. The major factor for such switch over is the lack of satisfaction in the service
delivery and personalized products/services that cater to the needs of the customer.
Hence it is suggested to have a dedicated relationship manager to measure the
satisfaction levels of the customer
▪
Identify Customer Expectation: Identifying expectations of the customers and meeting
the expectations by suitable services is one of the key elements of relationship
management. It is suggested through the research study that the identification of
expectation can be identified from the customer’s perceived service quality delivery and
the satisfaction level of the customers.
▪
Personalized Product/Services: It is suggested that, JBL employees may encourage
suitable contribution of ideas towards innovative services from all concerned in the
process of Services design and delivery system. Such an approach is suggested to be
continuous in character.
▪
Building Delivery Channels: Hence it is suggested to build more functional delivery
channels for the customer of Janata Bank Limited to reduce the complexity in delivering
the services. The retail banks need to create more awareness and increase the utilization
level of the delivery channels.
▪
Crafting Complaint Resolution Mechanism (CCRM): The JBL customers look for a
system to express their complaints and get it resolved in time. Therefore it is suggested
to craft a complaint resolution mechanism to bring a logical end to the issues thereby
minimizing the customer complaint cycle. This will strengthen the relationship with the
customer and build a reliability quotient in the operations.
▪
Standard Processing Time (SPT): Generally the retail bank customer expects the service
to be offered at the right time. In this context it is suggested that JBL should be framed
to a standard processing time and need to explicitly specify to the customer.
▪
Improving Customer Interaction: The interaction with customers is an essential input for
effective customer relationship. It is therefore suggested that, JBL employees may come
forward with appropriate and effective interaction mechanism.

▪
Customization of CRM Packages: The results of the research study reveal that there
appears to be lack of awareness with the JBL employees as well as adoption of CRM
packages available in the market. It is suggested that the successful implementation of
CRM package can be achieved only if it can create the right environment, culture and
attitude of the employee aiming to serve the customers in the best possible manner
.

7.2. Conclusion
In brief, the BBA program and Internship phase had gave student a great opportunity to gain relevant
skills in her future career. Especially, team-working skills developed through working in groups,
communication and presentation skills, and the personal management skills. This learning process would
be very useful and will help a graduate to sustain and continue to become a more effective learner in her
life learning. It will also be her personal skills portfolio. The researcher has now the ability to be more
objective and have critical analysis skills before making decision. That proves student have improved
his decision- making skills. This will particularly be useful in later roles in student’s career where these
skills can be applied effectively. All modules covered in the BBA program gave the student the
opportunities to develop new knowledge for the research process and to apply what he has learnt into
practice. This dissertation therefore, has provided excellent learning outcome for student impersonal and
future professional career development.
 Chapter Eight

References and Appendices

8.1. References

[1] Basic info’s [www] Available from: http://www.janatabank-bd.com/ [Accessed 22/03/2018]

[2] ATM and online service info [www] Available from: http://jb.com.bd/jb/about_us/atm

[Accessed 22/03/2018]

[3] Role of banking in Bangladesh [www] Available from:

http://www.assignmentpoint.com/business/assignment‐on‐role‐of‐banking‐in‐bangladesh.html

[Accessed 25/03/2018]

[4] Opening Account at JBL [www] Available from:

http://jb.com.bd/jb/treasury_and_capital/janata_capital_and_investment [Accessed
25/03/2018]

[5] Bangladesh Bank [www] Available from: https://www.bb.org.bd/ [Accessed 25/03/2018]

[6] Definitions and info’s about JBL [www] Available from: Wikipedia and Investopedia

[7]al, G. e. (2007). Total Relationship Marketing. London: Adventure Works Press.

[8]Chaffey, & Smith. (2012). Emarketing Excellence: Planning and Optimizing your Digital

Marketing . London and New York: Routledge.

[9]Gronroos. (1995). Service Management and Marketing: Customer Management in

Service Competition . Wiley India Pvt. Limited.

[10]Gummesson. (2002). Total Relationship Marketing. Burlington: Butterworth-Heinemenn.

[11]Johnston, R. (2005). Service Operations Management: Improving Service Delivery. Chicago:

Pearson Education.
[12]Kotler, P., & Armstrong, G. (2014). Princilpes of Marketing. Edinburgh Gate:
Pearson Education Limited.

[12]Marandi. (2003). Relationship Marketing Management. London: Thomson.

[13]Schneider, & White. (2004). Service Quality: Research Perspectives. California:

Sage Publications Limited

[14]Zeithaml, Parasuraman, & Berry. (1991). Delivering Quality Service: Balancing Customer
Perceptions and Expectations. New York: The Free Press.

Other Books, Periodicals & Annual Report

▪
Annual Report of Janata Bank Limited (2012 to 2017)

▪
Bangladesh Bank Guideline for General Banking

▪
Circulars of Janata Bank Limited

▪
Bank Management and Financial Services By Peter S. Rose, eighth Edition
8.2. Appendices

Questionnaire

Relationship with bank

Name of your bank:

2.1 Experience with the bank

a) Below 5 year b) 6 – 10 year c) 11 – 15 year d) 15 year

above 2.3 State the nature of your recent with the bank

a) Current account b) Saving account

b) Fixed deposit account d) Loan A/c e) all of the above

Service quality

According to your experience with the bank, please put your mark as to following
the factors

Item Statements Strongly Disagree Neither agree Strongly

no. disagree agree or agree
not agree
1 Banks focus individual 1 2 3 4 5
attention
2 operating in a flexible 1 2 3 4 5
hours
3 Employees understand 1 2 3 4 5
specific needs of the
customer
4 Customer also help to 1 2 3 4 5

Customer interaction management: State the level of effectiveness of the branch

serial Statements Strongly Disagree Neither Agree Strongly
no. disagree disagree disagree
nor agree

1 Ability to recognize 1 2 3 4 5
individuals
2 Skill to educate 1 2 3 4 5

3 Quality to gather 1 2 3 4 5
interpersonal traits

4 Skill to influence 1 2 3 4 5

5 Ability to maintain 1 2 3 4 5
promises

6 User friendly service skills 1 2 3 4 5

7 Ability to intractability 1 2 3 4 5

8 power to operate over 1 2 3 4 5

high
technical environment

Customer retention management: State the level of effectiveness of the branch

serial Statements Strongly disagree Neither Agree Strongly

no. disagree agree or agree
Disagree

1 Innovation services 1 2 3 4 5

2 Customer – Centric 1 2 3 4 5
approach

3 Special events 1 2 3 4 5

4 good complaint 1 2 3 4 5
Management process

5 New technology 1 2 3 4 5

6 Low Charges (Assurance 1 2 3 4 5

fee)

Personal information:

Name (Optional)

1.2 Age (Years)

a) Below 25 b) 26 – 40 c) 41 – 55 d) 56 and
above 1.3 Sex

a) Male b) Female