Chapter 01

Introduction

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The City Bank Limited is a full service scheduled commercial bank. It has both local and
International Institutional shareholder. The bank is primarily driven with a view of creating
opportunitiesand pursuing market niches not traditionally meet by conventional banks. The City
Bank has been motivated to provide “best-in-the-class” services to its diverse assortment of
customers spread across the country under an on-line banking.

Today, The City Bank is one of the fastest growing banks in the country. In order to support the
planned growth of its distribution, network and its various business segments, The City Bank is
currently looking for impressive goal oriented, enthusiastic, individuals for various business
operations.

The bank wants to build a profitable and socially responsible financial institution. It carefully
listen to the market and business potentials, It is also assisting The City Bank and stakeholders to
build a progressive, healthy, democratic and poverty free Bangladesh.

The internship program of BBA is a partial requirement to take a taste of real life challenge
conducted by the intern .It is an important part of BBA program .This program is for 3 month
duration. The period for this program was from May 09, 2016 to August 07, 2016. During this
period I have worked closely with the employees of The City Bank Limited. This report presents
the outcomes of the study during the internship of The City Bank Limited.

1.1: Origin of the Report:

As requirements of BBA program. I have conducted this report on “Marketing practices and the
customer satisfactions level of The City Bank Limited. My hoarier supervising Hasan Al Mamun
assigned this topic, Assistant professor Faculty of Business & Economics, United International
University of Bangladesh .

1.2: Objectives of the Study:

The broad objective of the report is to provide overall Performance Management Practices of the
City Bank Limited.

1.2.1: General Objective –

 To fulfill the requirements of BBA degree.

1.2.2: Specific objectives –

 To describe the service Quality Management of City Bank Limited

 To describe …………

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  To recommend necessary steps to overcome the Problems and make possible
improvement in the future.

1.3: Methodology:

The type of method used in this report is mainly of a descriptive nature. To meet the objectives
of the study, I realized that a single method would not be effective. Formal & oral discussion,
direct observation, and printed papers of the Bank were found useful. Both primary and
secondary sources were used here.

1.4:Nature of Study:

This is exploratory type of research. Information has collected and finish the report in both
Primary and Secondary sources.

1.5:Sources of Data Collection:

The data are collected from two sources —

1.5.1:Primary sources:

 Practical banking work.

 Discussion with the employees of the City Bank limited.
 Personal Observation.

1.5.2: Secondary sources

 Annual report, publications, training materials

 Periodical statements of the bank, brochures, booklets etc.
 Official Website of the City Bank Ltd.
 Documentary file of the City Bank Ltd.

1.6: Data Process and Analysis:

 Collected information has processed through data processing software.

 Detailed analysis, working variable future projection and working definitions are
incorporated in the report.

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1.7: Limitation of the Study:

Human Resource Department is the most confidential department for any organization in the
City Bank Limited. Here as an intern I am allowed to get limited information for my study. I am
not allowed to get the information which is too much confidential for the Bank. So in my report
all the information I have learnt from my Work.

1.8: The main limitation encountered in producing this report is as follows:

 Lack of adequate practical knowledge about modern practice.

 In many case up to date information is not published.
 Unwillingness of the busy key persons, necessary data collection becomes hard.
 Unavailability of sufficient documents as required making a comprehensive study.
 Time constraints were major drawback in this study, three month not sufficient.
 Bank policy should not disclose the confidential matters for many reasons.
 Only limited excess to human resource policy. top personnel are allowed.

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 Chapter 02

Company Overview

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2.1: Historical Background:

The City Bank Limited., one of the latest generations of commercial banks, which started its
journey on the 4th of July 2001 with a vision to be the absolute market leader. The City Bank
ltd.is a commercial bank scheduled bank extending full range of banking facilities as per the
directives of Bangladesh bank. It intends to set standards as the absolute market leader by
providing efficient, friendly and modern fully automated on-line service on a profitable basis.
The City Bank in surviving in the large arena through its unique and competitive products and it
is the only local bank providing 100% integrated on-line banking.

The bank is mainly owned by privatize bank in Bangladesh-The City Bank ltd. has positioned
itself as a new generation Bank with a focus to meet diverse financial need a growing and
developing economy.

The bank has embarked with a stated policy to promote broad based participation in the exile
economy all the way through the provision of high quality banking service based on latest
information technology. The bank will ensure this by increasing access to economic
opportunities for all individuals and businesses in Bangladesh with a special focus on currently
under served enterprises and households across the rural urban spectrum. We believe that
growing the ability of underserved individuals and enterprises to build their asset base and access
market opportunities will increase the economic wellbeing for all Bangladesh.

To keep in tied with its sponsor, The City goals, the bank endeavors to provide mass financing
especially to focus on under-served enterprises across the urban area. The bank focused on
relationship based Banking, as it believes that the pursuit of profit and developmental goals are
mutually reinforcing. This focus makes the bank to emphasize more on to explore and access
market opportunities as well as build asset base to its clients conforming significant contribution
to the profitability of the Bank.

2.2 Company Overview

Until the beginning of the eighties, the banking business in Bangladesh was only restricted to the
nationalized sector in addition to two or three foreign banks. It is only in 1983 that the
Government changed its policy on the banking sector paving the way for setting up new banks
with private sector. In fact, 1983 saw the emergence of a bevy of local banks with private

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entrepreneurship of which The City Bank limited stands out prominently. It came on stream on
the 27th March 1983.
The City Bank Limited is the first private sector Bank in Bangladesh. The Bank has been
operating since 1983 with an authorized capital of more than TK. 1.75 Billion under the
entrepreneurship of twelve prominent and leading businessman of the country. The noble
intention behind starting this Bank was to bring about qualitative changes in the sphere of
Banking and Financial management. Today The City Bank Limited serves its customers at home
with 120 branches spread over the country and about three hundred oversea correspondences
covering all the major cities and business centers of the world.
The services encompass wide diversified areas of trade, commerce and industry which tailored to
the specific needs of the customers and are distinguished by an exceptional level of prompt and
personal attention. Over the year the Bank has expanded the spectrums of Its Services. The
extensive and ever growing domestic network provides and carries various product and service
to the doorsteps of millions. The City Bank Limited has already introduced some new Banking
Products like duel currency Credit Cards, ATM and Online services which has created attraction
among the clients. The Bank has introduced real time Internet, SMS and Phone Banking systems
with all modern delivery channels at an early date. For significant performance, the bank has
earned national and international recognition.
The City Bank Limited was one of the twelve banks of Bangladesh among the five hundred
banks in Asia for its asset, deposit and profit as evaluated by “Asia Week” in the year of 2000.
Other the other hand, The City Bank Limited received the “Top Ten Company” award from
thePrime Minister of the People’s Republic of Bangladesh. We have a distinguished Board of
Directors which consists of thirteen successful and reputed businessmen. Mr. Aziz Al-Kaiser,
atop leading businessman, industrialist, pioneer personality and entrepreneur of private
sectorbank of Bangladesh, is the Chairman of the Bank. Mr. Kazi Mohmood Sattar a
dynamic,nationally and internationally reputed banker is the Managing Director and CEO of the
Bank.
The City Bank Limited recently won The Asian Banker “The Strongest Bank in
Bangladesh-2010” Award
The birth of The City Bank Limited as back as 1983 created a sensation on the financial
sectorand raised new hopes among the banking population. Within few years of its launching the

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bankmade tremendous impact in the economy and showed immense potentialities. Success
aftersuccess was streaming. The bank was adorned with prestigious honors like one of the top
tencompanies, large tax payer, one of the top five hundred banks in Asia. From 1984 through
1992the bank earned profits consistently and the performance was remarkable. The bank,
however,ran into rough waters from 1993 due to multiple events like business slump, default
culture,rigorous provisioning etc.
The City Bank Limited has so far been highly successful in keeping its clients satisfied with
itshigh quality service, while counting its expansion to reach more people around the country.
The
City Bank Limited conducts all types of commercial banking activities. It is involved in most
ofthe areas of commercial banking operations. The core business of the bank comprises of
tradefinance, term finance, working capital finance and corporate finance. The City Bank
Limited hasacted as the lead arrange in raising term loan for a number of projects under
syndicated financeand also participated in some cases under such financing arrangement. The
bank is alsoproviding personal credit, services related to local and foreign remittances and
several other products. The City Bank Limited’s program under “Poverty Alleviation Scheme”
deliveredthrough rural branches in the form of micro credit is playing an important role towards
socioeconomic development of the poor people in the rural areas. The City Bank Limited entered
themarket at a time when economic policy environment of the country is balanced for higher
levelsof business activities and growth. The prevailing macroeconomic management and the
government’s determination to carry on reforms in the banking sector provide a supporting
andencouraging environment.

a) Objectives of The City Bank Limited

The City Bank’s objectives are reflected in the following areas:
 Highly personalized service.
 Customer-driven focus.
 Total commitment to quality.
 Contribute in the economy.
 Quality of human resources.
 Commitment to its clients at each level.

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The company believes that communication with, and feedbacks from its clients help it achieve its
goal of providing world-class products and services. The City Bank Ltd regularly conducts client
satisfaction surveys and make immediate accommodations and adjustments where needed. It also
constantly monitors its standards, and strives to meet clients’ requirements.

2.3: Organizational Overview:

The City Bank Limited, with institutional shareholdings by International Finance Corporation
(IFC) and Shore cap International, has been the fastest growing Bank in 2005and 2006. At the
year end of 2006, The City Bank ltd .had recorded a 103 percent growth in assets, and a 65
percent growth in liabilities, with an operating profit of 84 percent over the previous year 2005.

A fully operational commercial bank, The City Bank ltd. focuses on pursuing unexplored market
niches in the Small and Medium Enterprise Business, which hitherto has remained largely
untapped within the country. In the last four years of operation, the Bank has disbursed over
BDT 1200 crore in loans to nearly 32,000 small and medium entrepreneurs. The management of
the Bank believes that this sector of the economy can contribute the most to the rapid generation
of employment in Bangladesh.

2.4: Company Profile:

The City Bank Limited, with institutional shareholdings by International Finance Corporation
(IFC) and Shore cap International, has been the fastest growing Bank The Bank operates under a
“double bottom line” agenda where profit and social responsibility go hand in hand. A fully
operational Commercial Bank, The City Bank ltd. focuses on pursuing unexplored market niches
in the Small and Medium Enterprise Business, which hitherto has remained largely untapped
within the country. In the last six years of operation, the Bank has disbursed over BDT 7500
crore in loans to nearly 200,000 small and medium entrepreneurs. The management of the Bank
believes that this sector of the economy can contribute the most to the rapid generation of
employment in Bangladesh. Since inception in July 2001, the Bank’s footprint has grown to 56
branches, 30 SME Service Centers, 427 SME unit offices and 112 ATM sites across the country,
and the customer base has expanded to 465,000 deposit and 187,000 advance accounts till
December 2008. In the years ahead The City Bank ltd. expects to introduce many more services
and products as well as add a wider network of SME unit offices, Retail Branches and ATMs
across the country.

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2.4.1: Financial performance table

Materials 2008-09 2009-10

Net loans outstanding 178.10 274.30

Total deposits 200.20 319.70

Return of average assets 1.4% 1.5%
No. of borrowers 21,723 40,799
No. of branch 310 381
No. of employees 1213 3047

Table: 1 The City Bank ltd. received National Award as the Highest VAT payer for the
financial year

2008-2009. The City Bank Limited has recently received the prestigious award for being the
highest VAT paying organization in national level in service industry. The City Bank ltd
received ICAB National Award .The City Bank Limited has been awarded ICAB National
Award from Institute of Chartered Accountants of Bangladesh (ICAB) for one of the Best
Published Accounts & Reports 2009recently

2.5: Vision of the Bank:

To be the leading Bank in the country with best practices and highest social commitment.

2.6: Mission of the Bank:

 To become the second largest bank in Bangladesh.

 Recruit the best from the applicants who can be a good resource to the bank.
 Motivate the employees by ensuring attractive salary and wages payments.
 Controlling the employees by using both X & Y motivation theories.
 Constant growth in ‘Small & Medium Enterprise’ sector.
 Manage and control the organizational relationships and responsibilities

2.7: Organizational Structure:

The board of directors is the top management and policy making comity of The City Bank
Limited. Presently the board consists of a chairman and four directors. It is to be noted that the
managing director, is also a member of the board.

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The directors are appointed from amongst those who have had experiences and shown capacity
in the field of finance and banking, trade, commerce, industry etc.

The chief operations officer executes all the activities under the directions of the board.

The officer and the other line and staff personnel are appointed by the bank’s own recruitment
committee of Human resource Division.

2.7.1 Functions Of The City Bank:

In order to serve the customers better, The City Bank Ltd has different products and services like

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 2.7.2: Departments of The City Bank Limited

The City Bank Limited has 26 departments in three different criteria.

The Departments are-

 Business:
 Support:
 Operations:

2.7.3: Employee of The City Bank Limited:

1. Deputy Managing Director (DMD)

2. Executive Vice President (EVP)
3. Senior Vice President (SVP)
4. Vice President (VP)
5. Senior Assistant Vice President(SAVP)
6. First Assistant Vice President
7. Assistant Vice President
8. Senior Principal Officer (SPO)
9. Principal Officer (PO)
10. Senior Officer (SO)
11. Management Trainee Officer (Direct Recruit)
12. Officer Grade II
13. Officer Grade I

2.7.4:Management Team:

Management team of THE CITY Bank includes the following positions and each position
contains one member.
Managing Director& CEO
Deputy Managing Director
Chief Information Officer
Head of Credit
Company Secretary & Head of Regulatory & Internal Control
Head of Probashi Banking

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Head of Human Resource Management
Head of Treasury & Financial Institution
Head of Marketing & Corporate Affairs
Head of Corporate Banking
Head of Impaired Asset Management
Head of Enterprise Risk Management
Chief Financial Officer
Head of Technology
Head of Retail Banking

2.8: Types of Banking

2.8.1 SME Banking:

The City Bank is the market leader in giving loans to small and medium entrepreneurs. They
have been doing it for the last five years. SME Banking includes:

 SME Network Coverage

 SME products

2.8.2: Retail banking:

Retail banking includes car loan, deposit products and cards.

2.8.3: Loan Products:doctors’ loan, salary loan, secured loan, NOW loan, high Flyer loan, Top
Up loan, car loan, teachers’ loan, study loan, travel loan, credit card loan etc.

2.8.4: Deposit products:set up fixed deposit, fixed deposit, and interest first, salary account,
current account, saving account.

2.8.5: Cards:

 American Express Card

 Nexus Pro
 City Credit Card
 City Manarah card
 Platinum city debit card
 City max card

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2.8.6 ATM/ Debit Card:

 ATM Debit Card

 ATM Locations
 POS Outlet
 Lost card/ card replacement

2.8.7: Corporate Banking:

 Corporate loan products:

 Trade Finance:
 Corporate cash management

2.8.8: Advantage of employees / employer:

2.8.9: For employee:

 24hour banking
 Extended banking hours
 Online banking
 Payday overdraft
 Salary loan

2.8.10: For employer:

 Salary upload
 Multi location salary
 Affordability
 Privacy
 Professionalism

2.9: Cash management services:

The City Bank’s national Collection Services (NCS) is designed to assist corporate with
nationwide collection requirements by providing faster funds availability in a cost- effective
manner.

 Cash collection services

 Drop box facility

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 2.9.1 My Contribution to the Organization

At first when I joined the organization my work was very minimal. My officers tried to give me
very little work and only told me to learn a bit of new things every day. I used to help other
officers if they needed my help in accomplishing their tasks. In that way I had a basic concept on
everything. As days past by the officers grew confidence on me and I could achieve many tasks
by myself. The Principal branch of The City Bank transacts more bill than any other branches in
Bangladesh. The second officer appointed me to that section because it was very hard for that
department to accomplish their task within the time frame.

Internship work distribution

1.2

1.4 Internal Audit

Marketing
6.2 Loan
3.2 Accounts opening

My job was to data entry all the bills in their software while the officers received the money from
the clients. As far I have seen the bill payments in rush time of the goes up to 30 lac in a single

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day and about 1500 data entry. Thus we had to receive the money than compare it with the data
entry balance. Then we had to post this bill online to the main branch and show them the
balance. This may sound like very simple work but the accuracy and concentration level require
to achieve this work is very difficult.

In daily basis I used to do other works like accounts opening, supplementary, writing cash
register and also work on clearing department. My job also extended outside of the bank where I
have to visit many organizations marketing our mobile banking and also deal with loan
customers. I also managed SME loan customer for the bank.

Therefore I will state that I tried to contribute more than the organization told me to do so and in
the process I learned many things about organizations culture and policy.

However, I started my internship with doing a survey of Service Quality Department & IT
Department. Ms. Zaheen gave me this one. This was really challenging for me because I was
new and I was told to know the customers point of view about the service of The City Bank and
also to collect the serial number of all the employees’ laptops serial number and also . I did it
perfectly. This was done to find out which laptops are going to expire soon and needs servicing.
So, for a bank, it is very important to keep all the things specially the computers up to date.

2.9.2 Organizational Learning

2.9.2.1 Technical Skills Acquired

During my internship I became quite efficient in using Microsoft Excel. There were little things
that my supervisor showed me which I never needed to use outside of work and therefore knew
little about, such as how to work with formulate graphs/charts on Excel, work with formulas in
order to calculate and tabulate data, switch from one Excel sheet to another using keyboard
shortcuts to save time. In order to create invoices with all the necessary details I got to work in
different software.When I was given the responsibility of employee’s leave calculation, I learned
how to create formulas on Excel sheets in order to get the results in shorter time.

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2.9.2.2 Analytical Skills

While doing this internship I could implement a lot of my theoretical knowledge into practical
work. While pursuing the BBA degree I had to study a lot of stuffs. All of them could not be
used and I had to logically input them even when any of them could be used anywhere. So from
this “how to implement your theoretical knowledge into your practical work” I could nourish
myself in terms of analytical skills.

2.9.2.3 People Skills

During conducting the HR related responsibilities I had to deal with from our MD to the office
maid. She used to come up with her salary, leave related problems to me. I used to try my best to
sort things out for her. I got to harness a good deal of my interpersonal skills while working with
them as these were people from different walks of life, with whom in the surface I had very little
in common with but as I got to know them a little better through my work I realized how
hardworking and dedicated they are, and in turn I got to learn a great deal from them. I would
always make sure that I was courteous while communicating with them in-person or over the
phone, so as never to offend or hurt any of them. They had been very kind and respectful towards
me during the entire process. I was able to create a good working relationship with them, as I
immensely enjoyed working with them. While conversing with them, I got to know about any
hardships they faced in life, the different places they came from and how they liked working in
this diversified cultural work place.

Besides all those, there were situations of conflict management when I had to weigh my duty to
the organization against my duty as a human being. My line manager was part of the recruitment
process of the executives/managers and at times there would be applicants from North South
University vying for the position and would ask me share any relevant information with them
regarding the recruitment and interview process. I had to learn from my mistakes during the
course of the internship to realize that no matter how tempting it may be to indulge in sharing
sensitive information, my duty to my organization comes first and should therefore be prioritized
above all else.

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 2.9.2.4 Organization and Environment

Organizational Culture

Organizational culture is a system of shared assumptions, values, and beliefs, which governs how
people behave in organizations. These shared values have a strong influence on the people in the
organization and dictate how they dress, act, and perform their jobs. Every organization develops
and maintains a unique culture, which provides guidelines and boundaries for the behavior of the
members of the organization.

The City Bank demonstrates following basic values through its culture:

 Inspire others
 Maintain Professionalism
 Be respectful towards others
 Open communication without fear of being reprimanded
 Work with joy
 Deliver great work
 Work on personal improvement
 Show Dedication and sincerity
2.9.2.5 Work Environment

The Principal Branch of The City Bank has a well decorated modern and very beautiful, office
building in the center of Dhaka city .The company occupies the building, which is owned by the
company itself. Openness, transparency, access and parity are at the core of their leadership
style. The Managing director, the Chairperson of the company and all the senior employees have
their own room, there are no separate office rooms for employees, they all have their own desk in
an open space, which best reflects a sense of camaraderie and openness between the employees.
There is a sense of openness and informality in the work environment with the right amount of
seriousness, so as to never verge in the much dreaded territory of “monotony”.

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2.9.2.6 Department, Coworkers, Supervisor

There are many departments in the company, as I have already mentioned that each department
has their own head, they all do their own task but under the approval of our Chairman. They
approve all the big decisions and all the other factors.

Type, Quality, Quantity of Work

As the only intern of the department, I was privileged to have a significant amount of
responsibility as compared to most interns in other departments or divisions. Since I also had to
work in accounts too, it made my journey more interesting.

Besides the physical work involved with the HR responsibilities, I also had a considerable
amount of desk work as I was a HRM & FIN intern in the first place. That involved a wonderful
hybrid of desk job and tasks with the tour of the whole office. I achieved strong hold on MS
office after this internship. Formulating sheets and graphs on Microsoft Excel using VLookUp,
correcting formulas of the data given on Excel sheets, doing complex calculations of revenue and
expenses using excel made me an expert in the field.

Interactions with co-worker s and supervisors

When I was about to start my internship program I realized that throughout my student life time I
only spent time with my friends. The work place is full of new people and people who are way
older than me. At very first the situation was very scary where I had to spend 8 hours of daily life
with this people. In the beginning of the internship program it was very tough for me to settle
with the situation.

I planned to be friendly with everyone and decided that I will listen and fulfill my fellow
coworkers will ask me to do. I said yes to everyone and be friendly with everyone even the
cleaners and the security guards. Even though I had nothing in common with my co workers I

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tried to blend with them by sharing and talking for hours. This helped me to stay in the work
place for 8 hours with ease.

Everybody in the workplace like me and appreciated my behavior. Even though the huge age
difference between my coworkers started being very friendly with me. Starting from the branch
manager who used to talk to me and take me on visit rather than any other employee in the
organization. He appreciated my willingness to work. There are other workers who invited me to
their place and also have a connection outside of the workplace. I would say after the first month
it felt like I belonged to that place and everybody in the workplace accepted as part of their team.

I would say this behavior helped me to learn everything from that organization and also helped
me to work very effectively and efficiently. Therefore I consider building a connection with
coworkers and boss is mandatory to survive in a workplace.

Dealing with difficulties

In corporate world everyone has to deal with different types of difficulties. To work with so
many different people is not that easy. People are very selfish and clever. They can do anything
for their betterment. In my internship period I faced a lot of challenges. They are-

In the 1st month it happened with me. Mr. Abdullah Al Mamun told me to photocopy a paper. I
went to the machine and copied some files. Then I gave them to him. He gave me another file.
When I came back to the machine I saw it was logged out. So I put the paper on the machine and
went to him back to take his ID card to punch. I got back to the machine and did not find the
papers. I searched the whole office. I got so scared that I could not tell this to Mr. Mamun. Then
I told MR. Tariq who is a very nice guy. He helped me a lot. Then we found that someone threw
those into the dustbin behind the machine. I got relieved after getting them back. I managed this

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with patience. But I got really scared. I did not tell this to Mr. Mamun as I did not want to
hamper my impression to him.

Differences between expectations and reality

As a Marketing major student I had learned many types of theories and also solved many cased
in many marketing courses. At the same time I also did many types of analytical work in
marketing. I learned SPSS as well, but when I enter to this organization I did not use much
theory and cases. I will not say that my hard work got wasted but I’ll definitely say that the real
work life is much different from the academic world. I cannot come to a conclusion by working
for three months only but I realized how things are making sense now which once used to be my
nightmares. When you apply your theoretical knowledge to your work then you actually can
figure out the purpose of your hard work to achieve that undergrad degree.

Although it is true that there are some things that were missing from academic training, it is in
my opinion that learning through practical experience is equally as important as well as effective.
I agree that we have done many cases in different courses but those where maximum USA based
cases, so we could not understand much by learning all these. The situation of other developed
country and the condition of our country is not same. So I must say the faculties of Bangladeshi
universities should focus more on Bangladesh based examples and many real life situation. What
I feel should have been prioritized in courses is the need to familiarize students with the various
aspects of a career in each major field of business so that they are able to grow an interest for a
particular field of study and accordingly decide what major and/or career they want to pursue.
For examples many of our U IU students might not have the idea of marketing based career or
finance based career, they just jump into the marketing world and took marketing or finance as a
major without knowing the draw backs, which can result into unemployment. So according to
my opinion every student should get a chance to know about every sector of job, so that they can
choose their major accordingly. There should be more career oriented academic life, instead of
fully bookish academic life. Additionally, focus a great deal of training on Microsoft Excel as it
is most frequently and widely used in organizations, and having a better understanding of it

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would facilitate ease of work. Business school should give more focus on excel, as the whole
world is technology based so more IT based course should be introduced. It can help us in future.

In short I would say, when I started working I didn’t have anything as my benchmark to decide
what is waiting for me in the work place. I was really scared and did not understand what I
actually have to do as my work. When I started working in the bank and was given with different
tasks I realized this organization will not overlook any mistakes. I became terrified and started
making many mistakes but my fellow coworkers were excellent in understanding the situation
with their experience trying to convince me that mistakes are unavoidable. They made me realize
if I make a mistake they are there to make it correct. After many days I was able to grow
confidence and could work in a valuable way.

Therefore I would state my expectation was that the workplace is going to be a terrified place but
it turned to be a place where I could enjoy myself and have a great time working.

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 Chapter 03

Industrial backgrounds

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Competitive Conditions of CBL in analysis of industry
of commercial banks in Bangladesh

In Bangladesh, the HSBC Group’s history dates back to 1996 when The Hong Kong and

Shanghai Banking Corporation (HSBC) Ltd opened its first branch. Today, the HSBC Group

offers a comprehensive range of financial services in Bangladesh including commercial banking,

consumer banking, payments and cash management, trade services, treasury, and custody and

clearing. HSBC provides full range of services with high service quality standard. However,

having only 9 branches and 27 ATMS, its current customer base and target market is much

narrower compared to other banks in the industry.

3.1 Standard Chartered Bank

Standard Chartered Bank originally established its first branch in Chittagong in 1948. Today,

Standard Chartered Bank is the largest international bank in Bangladesh with 25 Branches and

50 ATMs; employing over 1,300 people. SCB currently has presence in 6 cities in Bangladesh–

Dhaka, Chittagong, Khulna, Sylhet, Bogra and Narayanganj; including the country's only

offshore banking units inside Dhaka Export Processing Zone (DEPZ) at Savar and Chittagong

Export Processing Zone (CEPZ). With a moderate level of service quality, SCB is targeting

much wider market than HSBC & obviously playing a major role in Bangladesh banking

industry.

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3.2 Dutch-Bangla Bank
Dutch-Bangla Bank started operation as Bangladesh's first joint venture bank. The bank was an

effort by local shareholders spearheaded by M Sahabuddin Ahmed (founder chairman) and the

Dutch company FMO. From the onset, the focus of the bank has been financing high-growth

manufacturing industries in Bangladesh. The rationale being that the manufacturing sector

exports Bangladeshi products worldwide. Thereby financing and concentrating on this sector

allows Bangladesh to achieve the desired growth. DBBL's other focus is Corporate Social

Responsibility (CSR). In the current market scenario, DBBL is the leader in the ATM business

with around 170 ATM booths. And with around 80 branches all over the country, it has captured

a huge market share in the banking industry.

3.3 Dhaka Bank

Dhaka Bank was incorporated as a public limited company under the Companies Act. 1994. The

Bank started its commercial operation on July 05, 1995 with an authorized capital of Tk. 1,000

million and paid up capital of Tk. 100 million. The paid up capital of the Bank stood at Tk

1,934,252,875 as on June 30, 2008. The total equity (capital and reserves) of the Bank as on June

30, 2008 stood at Tk 3,424,609,016.

The Bank has 44 branches, 2 SME Service Centers, 1 Business Center, 2 Offshore Banking Units

across the country and a wide network of correspondents all over the world. With a very

attractive remuneration package, the Bank has plans to open more branches in the current fiscal

year to expand the network.

3.4 BRAC Bank

BRAC Bank, with its recent achievements like ‘Best Financial Institution of the Year-2008’ for

innovation in products, services, financial performance/ productivity and company management,

has set an example for other local banks. With almost 350 SME offices all over the country, it

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claims to be the leader in SME financing. However, the recent downfall of service quality has

become a major concern for the bank.

3.5 Eastern Bank Limited EBL

Eastern Bank Limited (EBL) is one of the modern, fully online and technologically superior

private commercial Banks in Bangladesh. Eastern Bank markets a wide range of depository, loan

& card products. Eastern Bank has its presence in major cities/towns of the country including

Dhaka, Chittagong, Sylhet, Khulna and Rajshahi. Currently it has around 40 branches all over

the country. Tracing its origin back to 1992, EBL is serving the individual and corporate

clientele alike with remarkable success offering innovative banking services since then.

3.6 Prime Bank Ltd.

Prime Bank Ltd. was created and commencement of business started on 17th April 1995. The

sponsors are reputed personalities in the field of trade and commerce and their stake ranges from

shipping to textile and finance to energy etc. Prime Bank Ltd. has already made significant

progress within a very short period of its existence. The bank has been graded as a top class bank

in the country through internationally accepted CAMEL rating. The bank has already occupied

an enviable position among its competitors after achieving success in all areas of business

operation. The bank has consistently turned over good returns on Assets and Capital.

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 Chapter 04

Products and service offering by CBL

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4. Products and service offering by CBL

The services encompass wide diversified areas of trade, commerce & industry that tailored to
the specific needs of the customers and are distinguished by an exceptional level of prompt
and personal attention. Over the years The City Bank Limited has expanded the spectrums of
its services. The extensive and ever growing domestic network provides and carries various
products and services to the doorsteps of mill ions.
The City Bank Limited (CBL) has already introduced some new Banking products like duel
currency Credit Cards, A TM and Online services which has created attraction among the
clients. The Bank is going to introduce real time Internet, SMS and Phone Banking systems
with all modem delivery channels at an early date.
For significant performance, The Bank has earned national & international recognition. The
City Bank Limited (CBL) was one of the 12 Banks Of Bangladesh among the SOO Banks in
Asia for it’s asset, deposit & profit as evaluated by “ASIA WEEK” in the year 2000. Other
than that, The City Bank Limited (CBL) received the “Top Ten Company” award from the
Prime Minister Of The People’s Republic Of Bangladesh in the year 1992-93.

4.1Project Summary:

The report has been prepared as a reflection of my activities and achievement during the
internship program, which underwent at Gulshan Branch in the City Bank Ltd. It is a
descriptive type of study. I interviewed almost all the employees. For this is purpose, I made
questionnaire.
General banking operation areas as follows: all kinds of deposits like Savings, Current, and
Short term deposits, Fixed deposit, different Scheme, cash remittance etc.
Bank loans are greatly emphasized and we can call all this as the “Heart” of the bank,
because they are a major source of bank’s income. They are very important to the economy

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 as a whole because the expansion and condition of the bank loan affect the level of business
activity through their effect on the Nation’s money supply. The banks extended its credit
facilities to different sectors to diversify it’s credit portfolio in compliance with credit
policies of Bangladesh Bank as given: Industrial, Housing (Commercial), Work order,
Working Capital for traders, Manufacturing processing plants and other business.
Import finance is given by the way of opening irrevocable documentary letter of credit
granting post import finance such as PAD, LIM, L TR etc. Pre-shipment and post – shipment
export fiancé is rendered by way of negotiation/purchase/discount of export bills, packing
credit, Back-to-Back LC etc. Bank remits money of the clients both with in the country and
outside the countries by telex transfer, telephonic transfers, pay order, demand draft etc.

4.2Description of the Project

Internship program is attempt to orient the students with the real world situation, give the
students to personally observe the complexity and find out the various ways to solve different
problems applying the theoretical thought in the department.
The Internship program designed to provide the B.B.A student with an opportunity to obtain
on the job training, aim at bringing together the two facts of learning the theoretical and
practical.

4.3Objective of the Project

The objective of the internship is to familiarize with the real life banking and to compare it
with the books that we have learnt.
The main objectives of the practical orientation are as follows:
 To understand the role of banks in Loans and Advances.
 To familiarize with practical banking activities of CBL.
 To know the General Banking practices of CBL.
 To know how CBL does deal with Foreign Exchange.

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4.4Type of study: It is a descriptive type of study.
Product Mix of The City Bank Limited (CBL):
A product mix is the set of all products and items that a particular seller offers for sale.
A company’s product mix has certain width, length, depth, and consistency. These concepts
can be applied in case of The City Bank Limited (CBL) in the following way:

4.5Width of product of CBL: The width of a product mix refers to how many different
product lines the company carries.
Table: I Shows CBL product-mix width of three lines:
 General Banking
 Foreign Exchange
 Loan and Advance

Length of product of CBL: The length of a product mix refers to the total number of items in
the mix.
Tabie: I Shows CBL product-mix Length of 12. We can also find the average length of a line.
This is obtained by dividing the total length (here 12) by the number of lines (here 3), or an
average product length of (Here, 12/3) 4.

4.6 Consistency of the product of CBL: The consistency of the product mix refers to how
closely relate the various product lines are in end use, production requirements, distribution
channels or some other way.
CBL product lines are highly consistent in terms of:
Enrl Use: This means customers are using all the offerings of CBL. There is no further
processing or reselling of CBL offering.
Example: FDR, MBS, TSSS etc.
Production Requirement: All the production requirements (Documentation) of CBL are
same. Example: Papers requirement for Account open, loan sanction etc.

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 Distribution Channels: This means all products of CBL are offered through all its Branches.
All of the offerings (services/products) are same.

4.7 General banking

During my Internship, I was placed in Principal Branch of The City Bank Limited (CBL).
First, I have completed General Banking in this branch. General Banking of this branch
consists of different sections, namely Account Opening section, Cheque Book Issue and
Dispatch section, Remittance Section, Clearing and Bills Section, Accounts Section, Cash
Section.
The City Bank Limited (CBL) offers different types of products or accounts under General
Banking Department.
According to the Law and Practice, the Banker – Customer relation arises only from contract
between these two. And opening of Account is the contract that establishes the relationship
between a banker and a customer. So this section plays a very important role in attracting
customer and therefore should be handled with extra care.
According to the International code of conduct banks should maintain following steps
regarding their customers:
 Banks will act fairly and reasonably in all their dealings with their customers,
 Banks will help customers understand how their accounts operate and seek to give them a
good understanding of banking services,
 Banks should maintain confidence in the security and integrity of banking and payment
systems.

4.8 Different Types of Account or Product:

Principal Branch has the following types of accounts:

1. Saving Account
2. Current Account
3. Short Term Deposit (STD) Account
4. Fixed Deposit Receipt (FDR) Account

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5. Deposit Scheme Account

4.9 Various Services provide by this Department:

Other then this, General Banking deals with various services for their customers. During my
practical orientation I have observed the Principal Branch deals with various types of
services. These are:
1. Demand Draft (DO),
2. Pay Order (PO),
III. Telegraphic Transfer (IT),
1. Clearing & Bills Section
2. Safe Deposit Locker
3. Utility Services
VII. Online Banking

4.9.1Demand Draft (DD):

Demand Draft or DO is an instrument containing an order by the issuing branch upon another
branch known as drawer branch, to pay a certain sum of money to the payee or to his/her
order on demand. This is the easiest way to carry a large amount of money from one place to
another with minimum risk.
4.9.1.1Demand Draft Issue:
 Customer is supplied with DD/MT form.
 Customer fills up the form, which includes the name of the Drawer, name of the Payee,
amount of money to be sent, exchange, name of the Drawee branch, signature and
address of the drawer .
 The customer may pay in cash or by transferring the amount from his/her account (if any)
.
 After the money is paid and the form is sealed and signed accordingly it is given to the
DD issuing desk.
 Upon receiving the form concerned officer issue a DD on a particular block .
 DD block has two parts, one for bank and another for customer.

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 Bank’s part contains issuing date, drawer’s name, payee’s name, sum of the money and
name of the drawee branch. Customer’s part contains issuing date, name of the payee,
sum of the money and name of the drawee branch.
 After furnishing all the required information entry of the DD is given in the DD issue
register and at same time bank issue a DD confirmation slip addressing the drawee
branch. This confirmation slip is entered into the DD advice issue register and a number
is put on the confirmation slip from the same register. Later on the bank mail this slip to
the drawee branch.
 At least two Grade-I officer sign the DD block and if the amount of the DD is
Tk.20,OOO/= or more than the amount is sealed on the DD with a special red seal to
protect it from material alteration .
 The number of DD is put on the DD form.
 Next the customer signs on the back of the DD and is supplied with his/her part of DD.

4.9.2Pay Order (PO):

Payment Order or PO gives payee the right to claim payment from the issuing branch. In
other words it is an undertaking by the issuing bank to pay a certain sum of money to the
payee or to order on demand.
Following procedure is maintained for the issuance of PO:
 Customer is supplied with PO form.
 After filling the form the customer pays the money in cash or by cheque.
 The concerned officer then issues PO on its specific block. This block has three parts, one
for bank and other two for the customer. ‘A/C Payee’ crossing is sealed on all Pay Orders
issued by the bank.
 The officer then writes down the number of the PO block on the PO form.
 Two authorized officers sign the block.
 At the end customer is provided with the two parts of the block after signing on the back
of the Bank’s part.

4.9.3Telegraphic Transfer (IT):

At customers’ request branch transfers fund to another branch through Telex and it is known
as the IT, in short. IT facility is available only in that branch having Telex facility. Now, it is
easy to done by mobile.

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 4.9.4 IT (Issue):
 Customer fills up the IT form and pays the amount along with commission in cash or by
cheque.
 The respected officer issues a cost memo after receiving the IT form with payment seal,
then sign it and at last give it to the customer.
 Next a IT confirmation slip is issued and its entry is given in the IT issue register.
 A test number is also put on the face of the slip. Two authorized officer signs this slip.
 Telex operator then transfers the message to the drawee branch mentioning the amount,
name of the payee, and name of the issuing branch, date and test number.
 The confirmation slip is send by post.

4.9.4.1 Clearing & Bills Sect ion:

Principal Branch of CBL receives different types of instruments, such as cheque, PO, DO etc
from its customers for collection. It also pays on behalf of its customers for those instruments
that come to it through clearinghouse. When instruments of CBL are sent for collection or
received for payment through clearing house it is called Inter Bank Clearance or IBC.

4.9.4.2 Safe Deposit Locker:

Only Savings / Current account holder of CBL can apply for a locker. There are three (3)
types of locker available in Principal Branch. These are: (I) Large (2) Medium (3) Small.

4.9.5Loan and Advance

4.9.5.1 Introduction:
Profit is the pivot on which the entire business activity rotates. Banking is essentially a
business dealing with money and credit. Like every other business activity banks are profit
oriented. A bank invests its funds in many ways to earn profit. The bulk of its income is
derived from loans and advances.

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 Banks make loans and advances to traders, businessmen and industrialists against security of
some assets or on the basis of personal security of the borrower. In either case, the banks bear
the risk of default in repayment. Therefore the banks have to follow a cautious policy and
sound lending principles in the matter of lending.

4.9.5.2 Forms of Advances

1. I) Secured advances: – Secured advance means an advance which is made against the
security of any asset, the market value of which will never be less than the advanced
amount.
2) Unsecured advances: – An unsecured advance is granted to a borrower without obtaining
any security from him but bank can impose restriction on the borrower time to time.
Banks look out for Person himself, Relation with the bank, transactions with the bank and
viability of business of that particular borrower. Then banks consider the securities offered
by the borrower.
Bankers make loans and advances to the businessmen and industrialists against various types
of securities. CBL also required sufficient securities before sanction of a loan or advances.
Security can be two types-
(I) Tangible Security——-Land, Building, Machinery
(2) Intangible Security—–Bonds, Shares, Debentures, Sanchaya Patra, ICB unit cert. etc.
But following classification of securities is important for bankers. These are-
(I) Primary Security
The security deposited by the borrower himself as cover for the loan is called the primary
security.
(2) Collateral Security
The securities deposited by the third party to secure advances for the borrower or on which
the creditor (bank) has a personal right of action on the debtor in respect of the advances.
Generally following are considered as security
 Land and Machinery
 Permanent Assets (Building, Factory etc.)

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 Gold ornaments
 Economic liabilities
 Work-order
 FDR / DPS
 All govt. security bonds (ICB unit cert., Wage earners bond, Sanchay Patra etc.)
 Insurance Policies
 Shares and Debentures
 Movable properties (Inventory, Stock etc.)
 Personal guarantee

4.9.6. Practices in Banks

The officials of banks generally follow the guidelines of the bank strictly. Government
security & other bonds are considered as a safest security for sanctioning advances.
Collection of security depends upon the party’s reliability also.
There are 6 types of modes of charging on securities.
(I) Pledge
Pledge is the bailment of the goods as security for payment of a debt or performance of a
promise. A pledge may be in respect of goods including stocks and share as well as
documents of title to goods such as railway receipt, bills of lading, dock warrants etc. duly
endorsed in bank’s favour.
(2) Hypothecation
In case of hypothecation the possession and the ownership of the goods both rest the
borrower. The borrower to the banker creates an equitable charge on the security. The
borrower does this by executing a document known as Agreement of Hypothecation in
favour of the lending bank.
(3) Mortgage
According to section (58) of the Transfer of Property Act, 1882 mortgage is the ” transfer of
an interest in specific immovable property for the purpose of securing the payment of money
advanced or to be advanced by way of loan, existing or future debt or the performance of an
engagement which may give rise to a pecuniary liability”. In this case the mortgagor dose not

36 | P a g e
 transfer the ownership of the specific immovable property to the mortgagee, only transfers
some of his rights as an owner. The banker exercises the equitable mortgage.
(4) Lien
Lien is the right of the banker to retain the goods of the borrower until the loan is repaid.
The bankers’ lien is general lien. A banker can retain all securities in his possession till all
claims against the concern person are satisfied.
(5) Assignment
Assignment means transfer of any existing or future right, property or debt by one person to a
1other person. The person who assigns the property is called assignor and the person to
whom it is transferred is called assignee. Usually assignments are made of actionable claims
such as book debts, insurance claims etc. In banking business, a borrower may assign to the
banker (I) the book debts (2) money due from government’s dept. (3) insurance policy.
(6) Set-off
Set-off means the total or partial merging of a claim of one person against another in a
counter claim by the latter against the former. It is in effect the combining of accounts
between a debtor and a creditor so as to arrive at the net balance payable to one or the other,
It is a right which accrues to the banker as a result of the banker-customer relationship.

4.9.7. Loan Area of City bank

Bank, as financial institution IS a service-oriented organization. It provides financial services

to the economy by mobilizing fund from surplus unit to deficit unit.
CBL has mobilized funds by introducing various financial products. Efficient & effective
fund mobilization depends on individual bank’s capability of designing financial products.
These are: –
Cash Credit (Hypothecation)

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 Cash Credit (Pledge)
 Overdraft Facilities
 Secured Overdraft Facilities
 Secured Overdraft (Work Order)
 Letter of Credit t (L/C)
 Back to Back Letter of Credit (BTB)
 Loan against Trust Receipt (L.T.R.)
 Loan against Imported Merchandise (L.I.M)
 Packing Cash Credit (P.C.C.)
These are Short Term Loan. Short Loan means term of loan is equal or less than one year.
Principal Branch of CBL gives first 5 (Five) above mentioned credit facilities under this term
by the Credit Department. Foreign Exchange Department provides rest of the loan facilities.
CBL considers the loans that are sanctioned for more than one year as term loans. Under this
facility an individual or enterprise is financed for various purpose. These are:
 Mid Term Loan

 Consumer Credit Scheme

 Transport Loan
 Lease Financing
 Long Term Loan
 House Building Loan (Commercial)
 Industrial Loan
SME (Small & Medium Enterprise) loan
 Revolving
 Instalment

 Overdraft

 SOD (FO)
 Work Order
 Others

 Mid Term Industrial Loan

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 Mid Term Industrial Loan means term of loan is upto 5 years. The City Bank Limited has a
vision to improve the financial sector of Bangladesh i.e. economic condition of Bangladesh
by providing effective and innovative banking and financial product in financial market.
However, in every economy of the world financial sector is highly regulated sector.
Mid Term industrial fiancé is allowed for the purposes:
To set up a manufacturing facility i.e. acquire land, buildings, plant and equipment, etc,
collectively known as fixed assets
To finance for BMRE where “B” means for balancing, “M” modernization, “R” for
replacement and “E” expansion Purchasing of adequate inventories comprising of raw
materials, stock in process and finished goods, retaining sufficient cash and extending credit
to their customers.
 Consumer Credit Scheme
Consumer credit scheme offers the customers to buy their needed items of goods without
paying the full cost of the item. Bank used to buy the product in favour of the customer.
Customer needs to repay the loan with a fixed instalment for a certain period of time. Since
Bangladesh is one of the poorest country in the world. The majority of our population is
forced to live substandard life. The middle class family cannot afford to buy their essential
utility product with their fixed monthly income. In this connection banks in our country has
introduced the scheme of consumer credit to extend credit facility to limited and fixed
income group to improve their standard of living.

 Repayment arrangement:
Consumer will repay the loan 24/36 monthly instalments.
Loan: The loan limit is Tk. 20,000 to Tk. 5 00,000.
Rate of Interest: 14.50% -17%
Lease Financing
CBL Lease Financing is given for Equipments Machinery for Industry or for BMRE of
business project CBL finance Leasing of
 Capital Machinery

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 Heavy construction equipments
 Lifts/ Elevators
 Air Conditioners
 Vehicles like Luxury bus, Mini-bus, Taxi-cab, Car, Pick-up, Trucks, etc
 Medical equipments
 Generators, Computers, etc
 Apartment Building
 Other costly consumer’s durable
The City Bank Limited offers lease financing facilities on the’ above items under pleasing
atmosphere.

4.9.8The Basic Terms:

4.9.8.1Selection Autonomy:
The lessee bears all the liberty to decide and select the brand, specifications, price,
supplier/seller and purchase terms & conditions of the leased items.
4.9.8.2Lease term:
1. i) Capital Machinery, Equipment and Medical Instrument – Maximum 5 (five) years.
2. ii) Vehicles & other Consumer durable – Maximum, 4 (four) years.
iii) Apartment Building Case to Case basis.

4.9.8.3Payment Mode:
Entire financed amount along with interest and charges would be recovered by equal monthly
instalments.
4.9.8.4Lease Deposit:
A minimum deposit equivalent to 3 (three) months lease rentals is required, which shall be
refunded/adjusted on expiry of the lease term.
Rate of Interest:
14% -16%
Security:

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1. a) Leased item itself
2. b) Bank/Insurance guarantee
3. c) En cashable securities like FDR, BSP, Share Certificates of listed companies, ICB unit
Certificate etc.
4.9.8.5Insurance:
1. d) Immovable properties along with cash security if the value of tangible security falls
short of the value of leased assets and
2. e) Personal guarantee of a gentleman acceptable to the Bank.
Clients have to take insurance coverage on bank stipulated insured value for the entire lease
term at his own cost (Year to year basis).
4.9.8.6Maintenance:
Clients have to maintain the leased items in usable condition throughout the whole lease
period at his cost and shall be solely responsible for any damage or loss although insurance
will cover most of the abnormal risks.
4.9.8.7Full Funding:
Under the method CBL provides 100% funding while only 50%-60% of financing is made
under traditional system.
4.9.8.8Transport Loan:
Any finance, which is given against the hypothecation of vehicles like trucks, buses, marine
vessel etc is termed as transport Loan. CBL gives advances under Transport Sector for the
following purpose:
 Purchase of imported/locally assembled Buses, Minibuses, Trucks, and Scooters
 Import of reconditioned buses is subject to Import regulations.
 Construction or Purchase of Water vessels- passenger & cargo vessels locally built.
 Repair of watercrafts including purchase of engine.

Rate of Interest:

15% -16%
Interest rate is depend on the amount is taken for the time period.
Requirement:

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 3 sets of quotation/pro-forma invoice of the vehicles.
 Quotation of the vehicles body building from a recognized body building firm if not
imported in complete form.
4.10 Long Term Industrial Loan:
Long Term Industrial Loan means term of loan is more than 5 years.
4.10.1 House Building Loan (Commercial):
CBL House Building Loan (Commercial) means that are given for construction of buildings
or structures to be used not for residential accommodation of the borrower but commercial
utilization like renting or sale after the construction.
This is given for Land development, civil construction and renovation of building.
Sometimes it is allowed for procuring Escalators, Air condition, Generator, Electrical
equipment, Furniture & Fixture etc.
Requirement:
 Business plan (project profile) on the project
 Approved plan of the competent authority with the letter of approval
 Estimation of construction cost prepared by engineer, reputed engineering firm! enlisted
surveyor of the bank.
 Survey report of Land by enlisted surveyor of the bank.

4.10.2 Industrial Loan:

The City Bank Limited has a vision to improve the financial sector of Bangladesh i.e.
economic condition of Bangladesh by providing effective and innovative banking and
financial product in financial market. The purpose of Industrial Loan is almost same with
Mid term Loan. But the differences are the time period and interest rate.
4.10.3 Small & Medium Enterprise (SME) Financing:
CBL finances an enterprise that has with minimum 3 and maximum of 60 employees can
apply for SME loan. Applicant should minimum 2 years experience in business. But start-up
business will be considered if projections are very good. Enterprise should minimum annual
turnover Taka 500,000 to maximum Taka 5 cores. The loan size is of minimum Taka
100,000 to a maximum of I core for a client.
CBL provide working capital or asset finance through:

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 Overdraft – secured & unsecured
 Instalment loan
 Letter of credit
 Guarantee / bonds
Who can avail the facilities?
 Shop keepers
 Small & medium entrepreneurs, manufacturers, traders etc.
 Suppliers to corporate businesses
 Professionals (doctors, engineers, etc)
 Business services
 Cottage industries
 Fleet (navy) financing

4.10.3.1Revolving loan
The revolving loan is one, which provides for restoring the credit to the original amount after
it has been utilized. How many times it will be taking place must be specifically mentioned
in the credit. The revolving credit may be either cumulative or non-cumulative. CBL
provides this loan facility.

4.10.3.2 Instalment loan

An instalment loan, also known as closed-ended loan, is the borrowing of a certain amount of
money from Bank and the repayment of it in instalments over a set amount over a specific
period of time. CBL gives this loan entrepreneurs, manufacturers, and traders as working
capital, to buy goods etc.
4.10.4 Overdrafts:
Advance in form of overdraft is always allowed on a current account. Cheques will operate
this account. The customer may be sanctioned a certain limit within which he can withdraw
his loan amount for several times within a stipulated period. Here interest will be charged on
the withdrawal loan amount. Overdraft facility normally given to the party for the expansion
of business and this facility is given for maximum one year.
Advances allowed against to the individuals, or fins against financial obligations, i.e., lien on
DPS, FOR, and ICB etc.

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 4.10.5 Against work order
There are three types of overdraft may take place.

4.10.6 Secured Overdraft (SOD):

Secured credit involves putting up some collateral that the creditor can take to satisfy the debt
in case of default. The collateral may be personal property, real property
of liquid assets. In most cases 90% credit is covered. On basis of bank-customer relationship
coverage may vary.
CBL gives this loan against the financial obligation of:
 DPS
 FDR etc

Loan may be allowed up to 90% premier lien on DPS , FDR, etc

4.10.7 Work Order

This kind of advance is allowed against the work order of a contractor involving
construction, supply of goods or services.
Documents to be obtain for CBL loan:
 Work/Supply order for project/Supply of goods etc.
 Confirmation letter from the work awarding authority that all cheques against the work/
supply order shall be paid to the bank direct.
4.10.8 Others:
It is another secured loan. This loan is given against:
 Sanchaya Patra
 ICB unit cert. Etc

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 4.10.9 Foreign Exchange
Introduction:
Foreign Exchange, like Foreign Trade is a part of economic activities of a country. The term
foreign Exchange is defined as ‘the system or the process of converting one national currency
into another and of transferring money from one country to another”.
Foreign Exchange as Foreign Currency, which includes deposits, credits, and balances
payable in Foreign Currency as well as Drafts, Traveller’s Cheques, Letter of Credit, Bill of
Exchange drawn in local currency but payable in Foreign Currency.
Thus, the international trade and movement of money and capital are the mainsprings of
Foreign Exchange dealings. In the modem day, the Banking service specially foreign
department, is performing a great role, dealing with Foreign Trade, which are as follows:
1. I) Import
2) Export
3) Foreign Remittance

At Principal Brunch Of CBL, foreign Exchange department has divided into 3 distinct
sections. These are
i) Import Section,
ii) ji) Export Section and
iii) iii) Foreign Remittance Section.
Some national and international laws regulate functions of this department. Among these,
Foreign Exchange Act, 1947 is for dealing in foreign exchange business and Import and
Export control Act, 1950 is for Documentary Credits (UC’PDC-1993 revision &
International chamber of terms and conditions between exporter and importer law for
settlement of terms and condition between exporter and importer in international factors for
import and export operation for banks).
The main product of Import section is LC (Letter of Credit) operation to import goods in the
country. Now, I start the discussion with the operation of import section.

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 4.10 Import Department:
Import section helps business and other people to import goods. In international environment,
buyers and sellers are often unknown to each other. So sellers always seek guarantee for the
payment for his goods exported. During this time, Bank gives export guarantee that it will
pay for the goods on behalf of the buyer. This guarantee is called letter of Credit. Thus the
banker gives the contact between importer and exporter by its “Letter of Credit”
4.10.1 Import (LC)
A letter of credit is a letter by a bank (known as the opening or the issuing bank) at the
instance of its customer (known as the opener) addressed to a person or a company
(beneficiary) undertaking that the bills drawn by the beneficiary will be duly honoured by it
(opening bank) provided certain conditions mentioned in the letter have complied with.
When a buyer goes to import some goods from a foreign buyer, he requests his bank make
payments to the exporter of goods. And the bank recovers the amount from the importer.

4.10.2 Registration with CCI & E:

For engaging in international trade, every trader must be first registered with the Chief
Controller of Import and Export. Trade can take license only for import or only for export or
both. For getting license, trader has to pay some specified fees to the CCI & E.
The license is called IRCIERC – (import-export registration Certificate). For opening LC
with bank, this IRC must be showed to the bank.

4.10.3 Determination terms of Credit:

The term of the letter of credit is depending upon the contract between the importer and
exporter. The terms of the credit specify the amount of credit, name and address of the
beneficiary and opener, tenor of the bill of exchange, period and mode of shipment and of
destination, nature of credit, expiry date, name and number of sets of shipping documents etc.
Application by importer to the banker to open letter of credit:

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 For opening LC, the importer is required to fill up a prescribed application form provided by
the banker. This prescribed application form includes details of import information including
terms of credit. It is evidence of agreement between the importer and the banker.
Document required with LC application Form:
 Pro-forma invoice / Indent Invoice
 Liability Sheet
 Demand Promissory Note
 Authority to debit account
 A filled up amendment request form
 A declaration of importer that his application has no illegal matter.
 IMP form
 Insurance cover note, etc.

4.10.4 Opening of L/C by the bank for the opener:

After getting filled up application form from the importer, the banker may open letter of
credit in favour of exporter if the bank satisfies with the credit worthiness of his customer.
But, before opening LC, bank collects credit of exporter from exporter’s country through his
foreign correspondence there. Opening bank then issues credit by air mail or cable followed
by credit advice as asked for by the opener through his foreign correspondent or Advising
bank as the beneficiary on his own form where it is addressed.
The opening banker’s credit advice contains all information of the credit and a
reimbursement clause stating how the negotiating banker would get reimbursement of his
payment made against the documents. The reimbursement of his payment made against the
documents. The reimbursement agreement may be to debit of the opening banker’s account
held with the negotiating bank of opening banker in the place of beneficiary.
Such account is called NOSTRO ACCOUNT. If no NOSTRO ACCOUNT is maintained in
the beneficiary’s country, then the negotiating bank is asked to claim reimbursement from
another bank either at the place of beneficiary or else where by drawing a reimbursement
draft.

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 4.10.5 Credit Facilitates:
During LC operation some Credit facilities evolved to the importer. This credit facilitates are
mentioned below:
4.10.6 Payment Against Documents (PAD):
This loan is related to cash LC after opening LC foreign exporter sends goods to the importer
and a bill of exchange along with shipping documents to the LC opening balance Upon
receiving bill of exchange and other documents, bank immediately make payment to the
exporter if no discrepant is found on the shipping documents. Bank hands over the shipping
documents to the importer only to exporter on the basis of shipping documents, this is called
payment documents.

4.10.7 Loan against Imported Merchandise (LIM):

LIM is occurred from PAD. After payment to the exporter on the basis of shipping
documents, bank recovers the amount from the importer. The negotiation bank Sends bill of
exchange to the Opening Bank. In this case, importer requests to the opening bank to treat
PAD as credit and hand over the shipping documents to him so that he can clear the imported
goods from the port. Then bank converts the PAD to regular credit and hand over the
documents to loan. Since this loan is given on the imported goods, this is called Loan against
Imported Merchandise. Duration of this loan is one month only, If the loan is no repaid after
one month, it is treated as forced LIM.

4.10.8 Loan Against Trust Receipt (L TR):

L TR is also a post shipment import finance like LIM. The essential difference is that in L
TR, shipping documents are delivered to the client on trust. The act of trust is based on past
experience with and credit worthiness of client. L TR facilities usually have validity of 60 to
90 days. In industrial units, period of limit may be longer. In case of this facility, the clients
always pay duty and charges. The Bank Manager must be absolutely sure that the client will
deposits the sale proceeds towards payment of the bank dues within the stipulated period.

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Miscellaneous services provide by this Department:

4.10.9.1 Student File Open:

Students who are desirous to study abroad can open file in this bank. By opening this file,
bank assures the remittance of funds in abroad for study. Moreover, Bank sends financial
information to the diplomatic office, which is very helpful for opener to get visa.
 4.10.9.2 Foreign Transfer:
Foreign Demand Draft: Bank issues Demand Draft in favour of purchaser or any other
according to instruction of purchaser. The payee can collect it for the drawee bank in which
the Issuing bank of Demand Draft holds its NOSTRO Account. Bank also makes payment on
DO drawn on this bank by its foreign correspondence bank through the VOSTRO Account.
In the process of remittance, bank must have to make profit as a business institution. Bank
makes profit in two ways· I. Commission charge and 2. Differences between the buying and
selling rate.
 4.10.9.3Telex Transfer
Outward IT: Bank also remit fund by tested telegraphic message via its foreign correspondence
bank in which it is maintaining its NOSTRO Account.
Incoming IT: In the same manner, CBL makes payment according to telegraphic message of its
foreign correspondence bank from the corresponding VOSTRO Account.
 4.10.9.4 Cash Remittance
Cash Dollar/Pound Sell: Bank sells Dollar Pound for using in abroad by the purchaser. The
maximum amount of such sell is mentioned in the Bangladesh Bank publication of
Convertibility of Taka for Currency Transactions in Bangladesh.
Cash Dollar/Pound purchase: Bank can purchase dollar from resident and non-resident
Bangladeshi and Foreigner. Most dollars purchased comes from realization of Export bill of
exchange.
These are the various types services given and operated by Foreign Exchange Department.

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 Chapter 05

Findings, Conclusion &

Recommendation

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SWOT Analysis

5.1 Strength
 American Express Credit Card: The City Bank Ltd. has launched both local and dual

currency (BDT & Dollar) Amex Credit Cards on 7th November, 2009. According to the

claws of the agreement, CBL is going to be the sole provider and dealer of Amex cards in

Bangladesh. Brand image of Amex is certainly going to leverage the brand reputation of

City Bank Ltd.

 New management: City Bank’s management team has significantly changed since the

year 2007. Personalities and brilliant minds like Mahmood Sattar, Mashrur Arefin, Sohail

R K has taken over the new management. New and new departments like NFB (Non

funded business), Policy & analysis etc are opened for better operation purposes.

 Experience: City Bank Ltd. has been in the industry for around 25 years. This long

period of existence in the industry has helped CBL to gain in-depth knowledge about the

industry trends as well as helped to build up strategic partnership with many corporations

which most other banks could not achieve in the shorter period of time.

 Availability of Branches: Currently CBL has 82 Finacle (Online) branches, 1 full

fledged Islami Banking Branch and 5 SME centers throughout the country. This big

number of branches is giving easy access to their customer which is a huge advantage of

CBL over its customers.

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5.2 Weaknesses

 Low remuneration package: Compared to other banks, CBL’s remuneration package is

poor. With this lower payment policy, CBL won’t be able to hire the best executives of

the country and might even lose their existing brilliant executives to other banks.

 Lower service quality: Compared to HSBC or SCB, CBL’s service standard is way

lower. Except few selected branches (Dhanmondi, Gulshan branch), most other banks

don’t even have posh and neat interior decoration. Customers are not treated according to

their expectation level and service is very slow.

 Existing elderly employees: A big percentage of CBL employees are working in this

bank over 15 years. The new management is finding it hard to deal with these employees,

especially with them who are reluctant to accept new policies and change within the

organization. Now it’s a matter of question for the CBL top management that whether to

find an appropriate exit strategy for these employees or whether to arrange appropriate

training programs to educate them.

 Poor Brand Image: Prior to the launching of Amex Cards, CBL had negative brand

image among its customers which lasted for more than 20 years. Now it would be

difficult for this new management to change this brand image all of a sudden.

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5.3 Opportunities

 Credit Card Business: The card business of Bangladesh is booming since last few years.

ATM’s, Debit cards & Credit cards are becoming a priority product both for the

customers and bank itself. A major portion of the Bank’s income comes from card

business. CBL has already launched AMEX Credit Cards on 7th November, 2009. This is

certainly going to boost their card business and brand image. In addition, CBL is looking

forward to include Master Card in their card business. They are hoping to bring Master

Card by July, 2010. Both these brands possess huge potential for CBL to grow as the

leader in the card business in Bangladesh.

 Online Banking: With the advancement and availability of technology, the need for

online banking is getting more priority. Both foreign and local banks are moving towards

online banking to ease the transaction process for the customers. CBL too, has taken

some tremendous efforts. They have already converted 83 of their branches into online

branch and providing certain services through internet.

 Automation: Since 2007, one of CBL’s major projects was to automate its operation by

using latest technology and software. Currently all of their branches are connected

through intranet. This network based banking is making the overall departmental jobs

much easier and faster, ensuring better and much faster customer service. CBL

employees are also using software called ‘Finacle’ which helps them to track information

and data about their customers within a matter of minutes. This move towards automation

will certainly provide CBL a big advantage over other banks in the industry.

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5.4 Threats

 VISA Credit discounts: We have already mentioned that CBL has undertaken an

ambitious project of American Express in the card segment of the banking industry.

However, the card segment of Bangladesh is already dominated by Visa credit cards.

Moreover, right after the launch of Amex Cards, several banks (i.e. standard chartered

bank) has undergone significant discounts in their visa card offerings. Under these

circumstances, further promotional efforts in Visa by other banks can possess a

devastating effect in CBL’s Amex Project.

 Failure to establish AMEX brand image: Compared to the existing foreign banks,

CBL’s brand reputation is considered somewhat poor. Especially in case of service

quality. With the existing brand image of its own, CBL might fail to establish AMEX

brand image properly.

 Maintaining a broad target market: CBL’s target market consist of consumers from

lower class to consumers with high net worth. Recently undertaken ‘Celtic Project’ is

designed for solely the elite class of Bangladesh. However, with limited training, the

existing employees might turn to provide inefficient service to these different classes of

people, especially since the expected service quality of the upper class is much different

than the lower classes.

 Management Collision: In the year 2006, a significant change occurred in the history of

CBL’s management because of the sudden recruitment of certain personalities like

Mahmood Sattar, Sohail R. K. and Mashrur Arefin. Being in the position of MD, Mr.

Mahmood Sattar renovated the overall structure of the bank and centralized its

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 operations. He tried to ensure that the new management consists of young and highly

talented people of the industry.

After this change in the top management, over 200 employees from different banks

(especially from eastern bank ltd.) were recruited. However, a major portion of the bank

still comprises of employees who are working here for more than 15 years and finding it

hard to match with the pace of this new management. Many of these employees think that

under this new management their future prospect of job is zero and to some extent they

are neglected in the newly undertaken projects of the bank. On the contrary, the new

management is not even ready to agree that there exists some sort of misunderstanding

and is trying to convince that only people with high abilities have been chosen for newly

undertaken projects. This invisible curtain of misunderstanding between these two groups

of employees can cause significant damages in the upcoming projects of CBL.

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Recommendation

On the basis of the problems we can suggest this recommendation-

 The banking should completely be operated through online. Though it is online

banking facilities in some branches, but still some works are being done manually,
which should be eliminated gradually and it will automatically give more efficiency
in service.

 Employees training should be conducted so that they will be more professional and
efficient to deal with problem customers and problematic situations.
 Individual attention should be given to customers in order to better understand their
needs and better satisfy them.
 City BANK should pursue a positive advertising campaign in order to build up a
strong image and reputation among potential customers. TV ads should be aired to
reach a wider array of customers. The ads should capitalize on building strong
relationship, needs of customers and quality service of the bank rather than features of
products.

 CBL should arrange the monthly seminar or workshop on the vest area of Foreign
Exchange business and its contemporary issues for the branch’s officer. Certainly this
workshop will motivate them.

 Head office of this bank should supply necessary prospectus about the information of
the bank for the clients. Although every table of every section is capable of supplying
the various information about the bank but this task is generally preformed by the
front desk or account opening section. However this section is found always busy.
Therefore, if CBL wants to perform this task in more efficiently the branch should
keep a Reception Section.

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Conclusion
The City Bank Ltd. went through a massive restructuring process during the year 2006. During

that period, the bank took some important initiatives (i.e. Centralization, one stop service

training, know your customer profile, mystery shoppers etc.) to improvise its customer service

quality. However, even after taking such steps the bank still could not change its service quality

image completely in its consumer minds.

This study shows that except few exceptions, CBL consumers possess very low satisfaction level

in terms of customer service. The report also shows that the level of customer satisfaction varies

from branch to branch. While Dhanmondi branch, rated as the best customer service provider,

other branches scored to be moderate or very low in terms of customer satisfaction. The reason

behind this fact is that previously CBL failed to establish a uniform service quality standard

within their organization and the branches served their customers according to their own method.

However, The City Bank Ltd. has recently been transformed in to a Centralized bank. And

performances of branches like Dhanmondi & Gulshan can be taken as ideal examples.

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Appendix & References

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Journal-1

WORK DONE:

I started my internship program at The City Bank on 9th May, 2016. I was selected by their
human resource department and assigned to the Principal branch which is in Dilkusha.

On the very first day of my internship, I had to spend a lot of time in interacting with people
around my desk and I was not assigned with much work that day. My supervisor then assigned
me a well descriptive work schedule where every detail was written about an intern’s duty. I was
mainly assigned to check those paper works of the City Bank which were generally checked in
the audit. On my first day, I checked the account information report of the customers. In the very
first week I started checking the security items report, destroying report of the vouchers. My
supervisor said he would assign me more work further. So basically in my first week, my main
task was to check whether all the information in those reports was right or not.

Journal-2
WORK DONE

The first week of the work was very easy to handle but the following time at the bank was
getting hard. The main income of The City Bank of Principal branch is attained from collecting
bills. The time frame of 15 to 25 of the month gets very hectic as the number of bill collection
goes up. At first the bills are collected and watched carefully whether the customers have to pay
the fine. If the date on the bill paper is expired, then the customer has to pay fine. After
collecting the money, the bill is converted into two copies. One copy is for customer and the
other one is the bank’s copy. My main work started after that as I had to enter the data in the

59 | P a g e
computers. Most of the bills are recorded in Excel sheet and so there is no margin for error. After
we successfully enter all the bills then we have to check whether our cash in hand and the
recorded bills match with each other.

One of the main works in this branch is the distribution of cards. Two staffs are there to serve the
customers. They have to collect the cards and distribute those cards to the customers’ whole day
long. The information of those cards is kept on their copies and also in the computer which is
basically called “Third Eye”. So, at the end of this week I have to check the numbers of “Third
Eye” with the information written in the copies. If there is any mismatch, then the employees are
bound to correct those and give the justification to the Branch Manager for their mistakes.
Another notable work which I have done this week is I prepared their cash balance book. When
my boss noticed that I did that well, he gave me past records of cash balance book to cross check
those.

Journal-3

WORK DONE:

I am getting more comfortable in the workplace as the place and people are getting more
familiar. Things are going much smoother from the time I began working in the City Bank. As
the rush of bill payment decreases for this month, second manager assigned me to work on more
paperwork.

On 21 may , I was assigned to work on different sectors like cash and clearing. So on the 15th
day, I was given a supply sheet which includes all the transaction from the previous day. This
supply sheet is different for each sector. This supply sheet has every transaction which occurred
in the previous day.

Most of the time I start with the cash supplementary which includes cheques, vouchers, paying
slip and etc. My main work is to understand which document is assigned to the debit and which
one to the credit for example most of the cheque goes to the debit side and vouchers to the credit

60 | P a g e
side. I also have to make sure that the cheques are posted accurately by checking the posting
numbers, cheque number and the account number. There are many cases when the cheques are
reversed.

There are also many works for cheque related issues. For example, many times cheques are
returned due to many problems. So, my another work was to identify that those number of
returned cheques were enlisted in the record file or not.

To conclude, in this whole week (From21 may to 28 may) I have checked the vouchers, the
record file of return cheque issues, the pay order files from 10 June, 2015 to 30 January 2016.

Journal-4

WORK DONE:

In the 4th week of my internship, I did not actually do lots of works and the reason behind that
was there was an audit session going on in The City Bank by Bangladesh Bank. For this reason,
on the 29, 30, 31 May, I checked all the destruction report of cheque books, debit cards, credit
cards, return cheques. The destruction is mainly prepared in every two months. For example, if
any customer becomes failure to collect his or her cheque book within two months after his or
her requisition, then that cheque book will be destroyed according to the company policy. That
same rule goes for debit cards, credit cards, return cheques. But before destroying all the reports,
it is urgent to notify the customers about the news of destruction. So, on 1 st june and 2nd june , at
first I prepared the list of customers who were supposed to get the letters and after that on the
rest of the days of that week, I had issued all the letters from the month of November, December,
January.

The Branch Operation Manager, Branch Manager helped me all the week in my works. At, first
they taught me the procedure, the policy and then I did my job.

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Journal-5
WORK DONE:

This is the 5th week of my internship. Work load increased even more. In this week I was
involved in field work. Our Branch Manager explained me the short comings of The City Bank,
Principal Branch. He explained me how the bank needed customers for loan to improve the
condition. He also asked me to look for business people or entrepreneurs who wanted loans.

In this particular week, my branch manager set an appointment to meet State University. I was
chosen to accompany him in the meeting. Before we went to the meeting he explained me the
loan system of The City Bank. There are two kinds of loans offered from The City Bank- a short
term and a long term loan. The short term loan is known as SME where the payback period is for
two years with an interest rate of 15 percent. The amount given here cannot exceed 4 hundred
thousand. This kind of loan does not require any kind of mortgage. The other loan system is long
term where the amount can be 5 hundred thousand to any figure. This type of loan requires
mortgage. The mortgages can be any kind of asset like land, property and also bank balance. The
valuation of the mortgage should be three times to the value of the loan taken by the party.

After I prepared myself, we went to State University to meet the assistant director of accounts of
State University. Then Branch Manager explained him the process and the paper works they
needed to collect. Then they stated the amount of eight crore required by their university to
expand new areas. The meeting did not have a successful result because the interest rate stated
by my bank seemed a lot for the university and was postponed for later discussion.

In this whole week, I was involved in the loan work. First four days of this week I helped my
manager with all the procedures and formalities of visiting the university and on the 5th day we
went there and on the 6th and 7th day I prepared a loan report for him.

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Journal-6
WORK DONE:

In my previous journal I have talked about how The City Bank needed loan customers to
improve the situation of the bank. The branch manger tells me to look for customers, people who
are entrepreneurs and are looking forward to take loan.

I found a young entrepreneur who runs a business of printing and sewing t-shirts. He is also my
friend and United International University student. Therefore I arranged a meeting with my
branch manager and my friend. There he explained his business type and why he required the
loan. After the meeting the head manager was pleased and agreed to pay the loan to him. But I
didn’t know the real work is about to get started to pass the loan.

At first he had to open an account where he has to show the business transaction for few days, so
that the bank can understand the stage of the business and whether he is capable of paying back.
I was given responsible for collecting the paper works like Tin number, photocopy of National Id
card, institutional seal and many things.

After he submitted all the required paper works his part of the job was done and now it was
banks duty to recognize whether he will be able to pay back the loan within the time period. In
the following day we were sent to his factory to audit the situations. I was part of the team with
second manager and loan officer and our job was to visit his factory and also his residence for
security purpose. This is to make sure that the bank has back up to caught the customer if he
becomes fraud. The loan process is still running because the bank requires more security.

So, basically in the first four days of this week, I was busy with these works in this week and
another day was a holiday.

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Journal-7
WORK DONE:

In this week I was assigned to work with the loan officers. This is the most important part of
banking. In my last journal I talked about how I worked on loan department to help my friend to
get a loan. The bank is still working on his paper works because the business is running on
partnership term and there is a new process applied by Bangladesh Bank for partnership.
Therefore that loan is kept on hold and loan department started working on other customers.

For any kind of transaction with the bank the customers need to open an account. I was
appointed by the loan managers to work on opening account before we go deep. There are many
types of account for special purpose but mainly there are two accounts SA (savings account) and
CA (current account). Anyone who is willing to take a loan must open a CA account because the
purpose of that account is for business. In CA account the account holder can transact money as
much he wants.

After he opens and starts transacting money the loan department will have an idea about the
business transaction. The loan officer opens a folder for each loan customer which will be sent to
head office to pass the loan. The folder contains many documents like the business trade profit
and loss account, balance sheet, stock allocation, picture of the institution and many other things.

I also took peek at the current loan situation where it shows all the current loans. The customers
are put into classes according their installment paying. It depends how many installment is paid
or how many they have missed will determine whether they are good loan or bad loan.

Journal-8
WORK DONE:

In this week I was still working on the credit department. The work over here is not hectic on

daily basis but the work accuracy is important. In credit department there is no chance for

64 | P a g e
mistakes. My work here is to stay with the officer and make files for forwarding to the main

branch.

We start the work according to the importance of the loan. Obviously the customers who are

taking big amounts are more important than the SME customers. The loan officer stated that

these important customers also have bigger risks. We have to physically visit their institutions

and go through each aspect. At first we start looking in their warehouses to find out the condition

of the business and also try to find proper allocation of the stock which will be created and

collected in the folder. We also look for their profile like balance sheet. We also look whether

they are paying their employees properly their business transaction. I was appointed by my

officer to take pictures of every aspect of the business which will be sent to the head office. After

we have acquired information about the organization then we try to get personal information by

visiting their home. A loan customer should have three guarantors who will ensure if the loan

taker does not pay back they assure of paying back the money or they will help the bank to

collect the money. One of the guarantors should be family members and the other two can be

anyone. I have been working in this department for a while and have seen that the number of bad

loan is increasing everyday and the bank is getting more hesitant before giving any loan.

Journal-9
WORK DONE:

In my 9th week of internship I was again working in the loan department. My supervisor posted
me to that area so that I can have more ideas about banking. The organization’s main profit
comes from this loan department and it is also a vital department where the risk is much superior
to any other department.

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The main loan officer of The City Bank gave me the job of stock allocation. The stock allocation
starts with the given stock allocation of the customers but in Bangladesh business
people/customers does not follow any regular format for stock allocation. In such cases I and the
loan department officer have to visit the organization and allocate their stock by physical looking
at them. After we have physical witnessed the stock then we go back to office put in the format
provided by Bangladesh bank.

This allocation of stock is only a single part of the puzzle. A customer needs to provide many
documents and papers to successfully get a loan. There are many files pending in the bank that
has provided every document but still does not get loan vice versa there are many customers who
have been given the loan but missed many installments and turned out to be a bad loan.

Therefore I would state that working in the loan department is more hectic than any other
department in bank area.

Journal-10
WORK DONE:

In this 10th week of my internship, I became more comfortable in the workplace as the place and
people are getting more familiar. Things are going much smoother from the time I began
working in the City Bank.

In this particular week, I checked all the manual reconciliation report of cheque books, debit
cards, credit cards, return cheques. The report is mainly prepared in a regular basis. For example,
in case of cheque books, how many cheque books are collected from System Delivery
Department and how many cheque books are delivered are calculated on those files. That same
rule goes for debit cards, credit cards and return cheques. So, on 1st June and 2nd June, at first I
prepared the list of customers who were supposed to get the letters and after that on the rest of
the days of that week, I had issued all the letters from the month of November, December, and
January.

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Journal-11
WORK DONE:

In the 11th week of my internship program, I am getting more comfortable in the workplace as

the place and people are getting more familiar. Things are going much smoother from the time I

began working in the City Bank.

In this week I have done several works. For example, I started this week by doing the salary

counting in the Excel sheets of the employees. After that, there are also some employees who are

kept under third party; I calculated their salary as well. There are also many remittance reports

and vouchers. So, my duty was to read the reports and understand the rules and regulations and

after that I checked and cross checked all the vouchers from June to March. In the meantime, I

used to help other employees in their works like- I wrote the holiday inspection report for every

month, I wrote the pin code; destroy code number of Master Cards, Debit cards in Excel files. So

in this whole week I did those works.

Journal 12
WORK DONE:

The last week was officially the end of my internship program. In last week I really did not do

much work. I was appointed by my supervisor to train the new intern student.

The City Bank appointed a new intern student who is from BRAC University. I started with the

supplementary where I told them how to find cheques and vouchers matching their transaction

number. I also told them how transaction can be returned or reverse.

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After dealing with supplementary I showed them the bill entry process on excel sheet. I

mentioned them not to change the formulas on the excel sheet and also taught them how to put

formulas in the excel sheet. I taught them how to closure the total bill section and worked side by

side for better learning.

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References

 City Bank wins American Express GNS Marketing Award. (2010). Retrieved from
The City Bank Ltd.: https://www.thecitybank.com.bd/amex_award.php
 City Bank launches City Bank American Express® Platinum Credit Card. (2013,
October 26).
Retrieved from Press Releases, The City Bank Ltd.:
https://www.thecitybank.com.bd/news_details_2013.php?code=14
 Bank Account.(n.d.). Retrieved from
immihelp: http://www.immihelp.com/newcomer/bankaccount.html
 Cheque. (n.d.). Retrieved from Wikipedia, the free encyclopedia:
http://en.wikipedia.org/wiki/Cheque
 Equipment Management System . (n.d.). Retrieved from UCLA, Equipment
Management: www.eqm.ucla.edu
 Islam, M. (2013, July 2). Retail Activities of The City Bank Limited. Retrieved from

 http://www.slideshare.net/IIUC28A9/internship-report-on-retail-banking-activities-

of-city- bank-ltd.The City Bank. (n.d). Retrieved April 4, 2016., from

 https://en.wikipedia.org/wiki/The_City_Bank

 Information to general public for opening and maintaining of Foreign Currency

Account with Authorized Dealer banks dealing in foreign exchange. (n.d.). General
Manager, Foreign Exchange Policy Department. Bangladesh: Bangladesh Bank.
 Rose, P. S. (n.d.). Commercial Bank management .
 Annual report-2006, The City Bank Limited.

 Annual report-2007, The City Bank Limited.

 Annual report-2009, The City Bank Limited.

 Annual report-2010, The City Bank Limited.

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