Professional Documents
Culture Documents
Internship Report
On
Analysis of Deposit Schemes of The City Bank Limited
Submitted to
Submitted by
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Letter of Transmittal
16.09.2017
Internship Supervisor
Assistant Professor
School of Business
Dear Sir,
It gives me pleasure to submit you my internship report on “Analysis of Deposit Schemes of The
City Bank Ltd.” based on three months of internship in Uttara branch Dhaka. Three months work
in this organization was a worthwhile experience for me as it was in one of the leading
commercial banks in Bangladesh. The report is based on the information about the Deposits of
CBL and its effect on financial performance. The information was collected during my internship
in different departments of CBL.
I believe that this internship program has enriched both of my knowledge and experience. I am
indebted for your valuable suggestions and humble cooperation. Now I have placed this report
before you for your kind approval. I hope that my report will satisfy you.
Sincerely Yours,
_________________
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ACKHOWLEDGEMENT
First, I would like to express my gratitude to almighty ALLAH to give me the strength to
complete the report within the stipulated time.
I am deeply indebted to my Academic Supervisor “Muhammad Enamul Haque” sir for his
whole-hearted supervision. His suggestions and comments were really a great source of spirit to
make the report a good one.
My sincere gratitude goes to Mr. Ariful Alam, Branch manager of Uttara Branch of The City
Bank Ltd. for his cordial attitude and helping hand guides. In addition, I would like to thank The
City Bank Ltd for giving me the opportunity to work with them and also providing me useful
information and knowledge needed for my internship.
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Executive Summary
The report is based on “Analysis of the Deposit Scheme of City Bank Ltd.” This research intends
to investigate the relationships of perceived usefulness, perceived ease of use, perceived
credibility, customer attitude, and customer adaptation of electronic banking in the context of
CBL, one of the leading banking service providers with a large ATM network in Bangladesh.
This report is prepared by personal experience, information taken from CBL web site, financial
report and help of senior officers.
The report is broadly categorized in five different parts. At first there is a prefatory where
describe the relation between banking sector and economy along with introduction, origins,
objectives, scopes of the report, methodology and limitation.
Part two describes the overview of CITY BANK, vision, mission, values, SWOT analysis of
CBL and services offered by CBL.
Then chapter four includes the main objective of the report “Deposits Analysis of CBL’’. First I
focus on deposits products and services offered by CBL. Then I have analyzed deposits of last
five years of CBL. Here I breakdown the total deposits including different types of deposit in
total deposit mix. At last the report analyze total interest amount paid by CBL against total
deposit mix.
And the last chapter is concluding summery that includes finding, recommendation, conclusion
and bibliography.
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Table of Content
Particulars Page no
Chapter 01:Introduction of the Report 06
1.Introduction 07
1.1 Origin of the report 07
1.2 Objective of the report 08
1.3 Scope of the report 08
1.4 Methodology 08
1.5 Limitations of the report 09
Chapter 05:Conclusion 48
5.1 Fidings 49
5.2 Recommendation 50
5.3 Coclusion 50
5.4 Bibliography 51
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Chapter 01
Introduction of the Report
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1. Introduction
With the advent of the 21st century, globalization and consolidation, amongst the multinational
and foreign companies are making their impact in the third world economy including that of
Bangladesh. To address this ever increasing competition, Bangladeshi financial institutions and
other companies and firms gearing themselves in order to meet challenges both locally as well as
internationally.
Due to globalization and expansion of international business, finance plays the major roles for
the economic development. The development of a modern economy would not have been
possible without the use of money. A fundamental characteristic of money is that it is like a
collective commodity. There is a parallel relationship between the money and banking. Bank is
an important and essential financial institution for the necessity of the use of money and the
protection of the money.
At the very arena of globalization and technological innovation, banking business has become
more competitive. To cope up with this, bankers should have huge theoretical knowledge and
professional skill as well as technical basis. As a BBA student, I felt that banking is an excellent
area to gather some practical knowledge. With a view to develop skilled professional in banking
area, United International University has undertaken the internship training program for its BBA
students. As a partial and essential requirement of the BBA, on authority’s instruction I have
selected For the City Bank Limited, one of the prominent banking institutions of Bangladesh to
acquire some practical experience in banking, especially in the correspondent banking program.
It would not be out of place to mention here that during the course of the program I had worked
in different department of Retail Finance Center. Before going to the main report I would like to
mention that it was not possible for me to cover the entire activity of the 25 years old banking
organization in the given limited time.
In this connection, after the completions of the BBA program, I was assigned to the City Bank
Limited for practical orientation. I chose the topic “Analysis of Deposit Schemes of The City
Bank Ltd.” for my internship report.
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1.2 Objective of the Report
The objective of the study is to gain the relationship between theoretical and practical learning
and the real life situation of City Bank in operating Collection Team. The various concepts,
which I have learnt from different courses during my BBA program, influencing an organization
in various aspects, are considered chiefly here.
1.4 Methodology
To make the report more meaningful and presentable, two sources of data and information were
used widely. Both the primary and secondary forms of data are used to make the report more rich
and informative. The details of these sources are gives below:
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1.4.1 Primary Sources
• Interviews with departmental head.
• Departmental surveys.
• Observation.
• On the job trainings.
• Practical working experiences.
• Data insufficiency limitation is the main constraint in the development of the report.
• As I am a not an employee of CBL, some data could not be collected due to internal security of
the bank
• This report did not include the whole financial position of CBL, actually more focused on
investment of the bank.
• Lake of Experience.
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Chapter 02
An Overview of the City Bank Limited
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City Bank is one of the oldest private Commercial Banks operating in Bangladesh. It is a top
bank among the oldest five Commercial Banks in the country which started their operations in
1983. The Bank started its journey on 27th March 1983 through opening its first branch at B. B.
Avenue Branch in the capital, Dhaka city. It was the visionary entrepreneurship of around 13
local businessmen who braved the immense uncertainties and risks with courage and zeal that
made the establishment & forward march of the bank possible. Those sponsor directors
commenced the journey with only Taka 3.4 corer worth of Capital, which now is a respectable
Taka 2311.78 corer as capital & reserve.
The services include wide diversified areas of trade, commerce &industry which customized to
the specific needs of the customers and are famous by an exceptional level of prompt and
personal attention. Over the years the Bank has expanded of Its Services. The extensive and ever
growing domestic network provides and carries various products and services.
City Bank is among the very few local banks which do not follow the traditional, decentralized,
geographically managed, branch based business or profit model. Instead the bank manages its
business and operation vertically from the head office through 5 distinct Units namely
I. Business Unit
II. Branch Banking
III. Risk Unit
IV. Operations Unit
V. Support
Under a real-time online banking platform, these 5 distinct Units are supported at the back by a
robust service delivery or operations setup and also a smart IT Backbone. Such centralized
business segment based business & operating model ensure specialized treatment and services to
the bank's different customer segments.
The bank currently has total 120 branches which include 99 online branches, 1 full-fledged
Islamic Banking branch, 1 SME service center and 11 SME/Agri branches spread across the
length & breadth of the country. Besides these traditional delivery points, the bank is also very
active in the alternative delivery area. It currently has 311 ATMs of its own; and ATM sharing
arrangement with partner banks that has more than 1150 ATMs in place; SMS Banking; Internet
Banking and so on. It already started its Customer Call Center operation.
THE CITY BANK has already introduced some new Banking products like dual 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 & international recognition. THE
CITY BANK was one of the 12 Banks of Bangladesh among the 500 Banks in Asia for its asset,
deposit & profit as evaluated by "ASIA WEEK" in The Year 2000. Other than that, THE CITY
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BANK LIMITED received the "Top Ten Company" award from the Prime Minister of the
People's Republic Of Bangladesh.
City Bank is the first bank in Bangladesh to have issued Dual Currency Credit Card. The bank is
a principal member of VISA international and it issues both Local Currency (Taka) & Foreign
Currency (US Dollar) card limits in a single plastic. VISA Debit Card is another popular product
which the bank is pushing hard in order to ease out the queues at the branch created by its
astounding base of some 400,000 retail customers. The launch of VISA Prepaid Card for the
travel sector is currently underway.
City Bank has launched American Express Credit Card and American Express Gold Credit card
in November 2009City Bank is the local caretaker of the brand and is responsible for all
operations supporting the issuing of the new credit cards, including billing and accounting,
customer service, credit management and charge authorizations, as well as marketing the cards in
Bangladesh. Both cards are international cards and accepted by the millions of merchants
operating on the American Express global merchant network in over 200 countries and territories
including Bangladesh. .
City Bank is one of the largest corporate banks in the country with a current business model that
heavily encourages and supports the growth of the bank in Retail and SME Banking. The bank is
very much on its way to opening many independent SME centers across the country within a
short time. The bank is also very active in the workers' foreign remittance business. It has strong
tie-ups with major exchange companies in the Middle East, Europe, Far East & USA, from
where thousands of individual remittances come to the country every month for disbursements
through the bank's large network of 99 online branches and SME service centers.
The current senior management leaders of the bank consist of mostly people form the
multinational banks with superior management skills and knowledge in their respective
"specialized" areas. The newly launched logo and the pay-off line of the bank are just one initial
step towards reaching that point.
2.2 Vision
The Financial Supermarket with a Winning Culture Offering Enjoyable Experiences
2.3 Missions
•Offer wide array of products and services that differentiate and excite all customer segments
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•Be the “Employer of choice” by offering an environment where people excel and leaders are
created
•Promote innovation and automation with a view to guaranteeing and enhancing excellence in
service
2.4 Values
Result Driven
Accountable & Transparent
Courageous & Respectful
Engaged & Inspired
Focused on Customer Delight
2.5 Logo
Positioning is the act of designing the company’s offering and image to occupy a distinctive
place in the target market’s mind. The end result of positioning is the successful creation of a
market-focused value proposition, a cogent reason why the target market should buy the product.
In doing so City Bank recently started series of advertisement in daily newspapers, billboards
and in other media. It launched its new logo and tag line to mark the 25th anniversary of its
Operation in July 2008.
In recent times, one will find huge difference in the overall positioning and branding of City
Bank. The old logo is out dated and does not have any concrete meaning or idea. However, the
new logo can be defined in many different ways
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Here, the red and silver shape means a chessboard; which stand for wisdom and vision. Since
City Bank is 28 years old, they are expert and experienced. Chess is the game of the smart people
who knows all the moves. The Bank’s game is to deal with customer’s money matters as smart
and sensible banker.
It also symbolizes the checkered flag of “Formula One Racing ‟which signifies speed and fast
pace. It can also be signified as a beautiful kite, which nose up, going to reach for the sky. In that
case, it means the bank is soaring high into the skies of many possibilities in order to make
financial dreams come true.
The color red stands for passion, confidence, daring, bold and courage. The color silver
symbolizes the Silver Jubilee color which goes or match with the color of historical coins.
The logo has a dynamic shape. Such dynamism stands for modernity, the 21st century. That
signifies, this is going to be techno savvy bank, a state of the art tech powered modern bank.
Strength
The Bank provides quality service to the clients compared to its other contemporary
competitors
Experienced bankers and corporate personal have formed the management of the
bank which formulates the core business strategies
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Some services of the bank are automated which attracts large number of clients. For
instance, the bank provides Automated Teller Machine (ATM) services in sever
allocations.
The bank will very recently introduce on line banking which will enable it to automate all
of its operations. At present, several banking functions are performed by computers. The
bank is also a member of SWIFT (Society for Worldwide Interbank Financial
Telecommunication) Alliance Access which enables the bank to exchange critical
financial messages swiftly and cost effectively
City Bank has already achieved a goodwill among the clients that helps it to retain
valuable clients.
Weakness
Delegation of authority is centralized which makes the employee to realize less
responsibility. Thus, the employee morale is deteriorated.
The credit proposal evaluation process is lengthy. Therefore, sometimes valuable clients
are lost and the bank becomes unable to meet targets.
Hence the employee becomes ineffective. The bank lacks aggressive advertising and
promotional activities to get a broad geographical coverage.
The bank has only a few ATM booths and not in proper places. So, the scope of using
ATM card is limited.
Computer facility for all the officers is not available. Moreover, all the officers have no
computer knowledge
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Opportunity
The bank can introduce more innovative and modern customer services to better survive
in the competition. For example, the bank can introduce credit cards and go for merchant
banking.
The bank can offer micro credit business for individual and small business.
Many branches can be opened to reach the Bank’s services in remote locations.
The bank can recruit experienced, efficient and knowledgeable workforce as it offers
attractive compensation package and good working environment
Threat
Increasing competition from other banks ( Government owned, Local & Foreign banks)
City Bank might face the challenges of local currency devaluation and inflationary
pressure of the economy.
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Under a real-time online banking platform, these 4 business divisions are supported at the back
by a robust service delivery or operations setup and also a smart IT Backbone. Such centralized
business segment based business & operating model ensure specialized
2.7.1Corporate Banking
This division of CBL mostly deals with deposits and loans from corporations or large businesses,
as opposed to normal individual members of the public (retail banking). The functions of the
corporate division may include the following tasks:
City Manarah - Islamic Banking was introduced to guide and manage finances in a fully Islamic
Shariah Compliant way. It offers a wide variety of deposit and investment products
Each account is designed to meet financial needs with best value of money. City Manarah
includes services such as,
Structured Finance
Cash Management
Investment Banking
Schedule of Charges
Interest Rate on Lending
Deposit
Transactional Account
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Current Accounts
General Savings Account
Savings delight Account
High Value Savings Account
New Born’s deposit Account
Seniors savings Account
Student savings account
RMG workers Account
Basic savings account
Term deposit
FCY Account
NFCD Account
RFCD Account
Loan
Auto Loan
Personal Loan
Secured Loan
Partial Secured Loan
City Scholar
Home Loan
Card
Debit Card
Credit card
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Visa Classic Local Card
Visa Classic Dual
Visa Gold Local
Visa Gold Dual
Medical File
Student File
Remittance
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Chapter 03
Internship Jobs and Duties
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3. Internship Jobs and Duties
City bank limited is one of the rapid growing banks in Bangladesh. CBL widely conducts
business activities with 121 of its branches around the country. According to the requirements of
course fulfillment I joined in City Bank Ltd. at Uttara Brancch as an internee on the date of 11 th
May 2017. I have worked for three months with different section under the supervisions of
professionals under different department.
Close to this I had to work with some other employees regarding some vital issues like update
customers information, collect necessary documents from customers, fill up debit card forms,
update KYC (know your customer) for new and existing customers, provide information about
American express card to the customers and help retail department managers to fill-up
documents etc.
According to the office rules and regulations I have proceed like a regular employee. That’s why
I had to serve from 10.00am to 6.00pm. After entering into the office I had do my regular duties.
During my internship period I had conduct regular survey on customer to collect their feedback
about the branch.
As an internee I also had some certain responsibilities and duties that had to perform very
sincerely, Since initially I was an retail banking department there I had to work as an assistant of
different employee who was working on that relevant department.
During internship period I have learned lots of things. Few of them are given below:
I had to work on retail banking division on Uttara Branch. I had to collect necessary documents
from the customers those who came to open account in the branch
My prime job at Uttara Branch was to update customer’s information. Customer who opened
their bank account before 2014, the need to update their information and I had to collect those
information.
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Update KYC (know your customer) :
I had to prepare KYC for all kind of account. According to Bangladesh Bank’s rules and
regulation all banks have to collect photo, national id card, and other document for verifications
of customer’s information. KYC helps to identify risky customers. KYC place to prevent money
laundering and KYC form contain different information like source of fund, account transaction,
profession etc.
I had to collect debit card requisition from the customer and filled up necessary papers. After
filled up card form I had to send the papers to the card division of the head branch.
I had to work on retail department and provide information about credit card to the customers.
Customers used to ask me about American Express card feature, benefit, processing fee etc.
I had to open savings bank account and collect documents from the customer.
Another job was to correct customers name and address if changes necessary. I had to contact
with customer via phone and had inform that their address or name have to correct.
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Chapter 04
Analysis of Deposit Schemes of CBL
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4.1 Deposit Products and Services
Interest rate- 2%
Interest rate
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conventional savings account available in the market. All such accounts calculate interest on the
average or lowest balance of the month, while High Value Savings Account does on daily
product basis. Not only that, while those conventional savings accounts pays interest only twice a
year - in June and December - High Value Savings Account pays it to you every month.
Happiness at each month end
Interest Rate – 2%
Every child is special to the parents. New Boron’s Deposit Account is the account for parents
who wish to open account in the name of their new born baby. The account comes up with a
(mandatory) unique facility of Insurance Backed DPS, which will help the parents/legal
guardian. Standing instruction will be given in the Savings Account that, installment of
Insurance Backed DPS will be collected automatically from Savings Account.
Eligibility
To enjoy your awaited moment, City Bank brings you Seniors' Savings Account - a deposit
account with endless benefits
Eligibility
Interest rate
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10 Lac - Below 25 Lac 3.25%
25 Lac & Above 3.25%
City Bank introduces "Student Savings Account- School Plan" – a savings account tailored
specifically for students below the age of 18. It is to help them develop the habit of saving up and
making them financially responsible
Eligibility
College Plan
City Bank introduces "Student Savings Account- College Plan" - a savings account tailored
specifically for students over the age of 18 enabling them to continue their education and build a
bright future.
Eligibility
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There is a significant opportunity to provide a range of financial services to Garments Workers.
The City Bank is offering deposit product of savings nature for Garments workers. Our primary
objective of this product is to bring banking service to garments workers
General DPS Account is an exceptional DPS product that is distinctly more attractive than the
prevalent DPS products in the market. You receive a hefty sum at the end of the term against
your monthly deposit of small installments. It's a perfect way to secure your financial future!
Insurance Backed DPS Account is a unique monthly deposit scheme that you open for your
kids to safeguard their future against all uncertainties and risks. As a guardian of the child
you can open this account which builds great & unmatchable savings for you over the years.
By the time your child is past his or her school age, there is this sufficient cash in your hand
to take care of his / her higher education, marriage or other such large expenses.
However, the most interesting part of this scheme is the full insurance protection that you
automatically enjoy. This simply means, in case of death or total physical collapse of the
parent or guardian, the bank will pay the full value of the scheme for the full term no matter
in reality how many months or years have been actually completed by you.
This product allows you to earn interest and enjoy interest every month that accrues in your fixed
deposit account, no matter what the term of the deposit is. It helps to make your financial
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planning more disciplined, and your life more organized. While your fixed deposit remains
untouched and well-kept for future, you keep on getting the profit on a monthly basis.
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4.2 Deposit Schemes Analysis [2012-2016]
4.2.1 Total Deposit
In 2016, total deposit of bank stood at BDT 17,4695 million compared to BDT 14,3728 million
of previous year showing a growth of BDT 30966 million that is 21.5%. Fixed deposits recorded
a significant growth of 26.3% in 2016. The growth rate of current deposits is 19.2%. During this
year the growth of savings of deposit was 12.1%
174,695,032,689
143,728,733,410
118,726,515,538
107,496,602,735
94,098,626,065
Total deposit of the bank in 2015 was BDT 143728 million that is higher than previous year, a
growth of BDT 25,002 million or 21%. In 2015 growth of fixed deposit is 11% and savings
deposit was 30% of the total deposit mix
Total deposit of the bank as on December 31, 2014 stood at BDT 118,727 million compared to
BDT 107,497 million the previous year, a growth of BDT 11,230 million or 10%. In 2014
growth of fixed deposits was 4% and savings deposit was 24% of the total deposit mix.
Total deposit of the bank as on December 31, 2013 stood at BDT 107,497 million compared to
BDT 94,099 million of previous year, a growth of BDT13,398 million or14%. In 2013 growth
of fixed deposits was 17% and Savings deposit was 11% of the total deposit mix.
Total deposit of the bank as on December 31, 2012 stood at BDT 94,099 million compared to
BDT 83,818 million of previous year, a growth of BDT 10,281 million (12%). In 2012 growth of
fixed deposits was 56% and Savings deposit was 18% of the total deposit mix
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4.2.2 Savings Bank Deposits
Savings bank deposits are one of the portions of total deposit. It has a great contribution in total
deposit mix. Here is last five years total savings deposit of CBL
34,994,257,334
31,213,313,434
22,987,673,384
18,606,964,869
16,705,636,955
In 2016, total savings deposit of bank stood at BDT 34,994 million compared to BDT 31,213
million of previous year showing a growth of savings of deposit was 12.1%.
Total savings deposit of the bank in 2015 was BDT 31,213 million that is higher than previous
year. The growth rate of savings deposit was 30% of the total deposit mix
Total savings deposit of the bank in 2015 was BDT 22987 million that is higher than previous
year. The growth rate of savings deposit was 24% of the total deposit mix
In 2013, total savings deposit of the bank was BDT 18,606 million. The growth rate of savings
deposit was 11%
During 2012, total savings deposit was BDT 16,705 million and its growth rate was 18%
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Here is the graphical presentation of the contribution of total savings deposits in Total deposit
mix
2012 2016
18% 21%
2013
18% 2015
23%
2014
20%
In 2016 total savings deposit is 21% of total deposit mix. The contribution of savings deposit in
2015 is 23% which is higher than other years. In 2014 it is 20% of total deposit mix. In 2013 and
2012 it is 18% of the total deposit mix.
Total Savings deposit is a mix of Mudaraba/ Manarah savings deposits and savings deposits.
Mudaraba/manarah 1% 12% 3% 5% 1%
savings deposits
The table has shown the percentage of savings bank deposits and manarah bank deposits in total
savings bank deposit of last five years. Maximum portion is savings deposit and have a very little
contribution of mudaraba savings deposit in total savings deposit.
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The percentage of both deposits are shown in the below graph.
120%
100%
80%
20%
0%
2016 2015 2014 2013 2012
In 2016, total current deposit of bank stood at BDT 24,512 million compared to BDT 20,572
million of previous year.
24,512,543,307
20,572,164,836
14,473,382,026
10,797,050,474 10,159,694,436
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Total current deposit of the bank in 2015 was BDT 20,572 million that is higher than previous
year.
Total deposit of the bank as on December 31, 2014 stood at BDT 14,473 million.
Total deposit of the bank as on December 31, 2013 stood at BDT 10,797 million compared to
BDT 10,159 million of previous year.
Total deposit of the bank as on December 31, 2012 stood at BDT 10,159 million.
The percentage (%) of total current deposit in total deposit mix is given below chart.
2012
18% 2016
23%
2013
16%
2015
23%
2014
20%
The percentage of current deposit in 2016 was 23% which was similar with the previous year.
The rate was 20% in 2014 and 16% in 2013. In 2012 the contribution of current deposit in total
deposit mix was 18%
Total current deposit is a mix of current, manarah, foreign currency deposit and sundry deposits.
The contribution or percentage of these deposits in total current deposit has shown in the below
table
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Percentage of different current deposits has shown in the graph
80%
70%
60%
10%
0%
2016 2015 2014 2013 2012
In total current deposit, major portion belongs to current, al-wadeeah and manarah current
deposits and then sundry deposits. There was a little portion of foreign currency deposits.
85,146,346,041
76,423,447,282 73,898,177,359
62,365,476,088
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In 2016, total fixed deposit was BDT 107,741 million which is higher than previous years. Fixed
deposits recorded a significant growth of 26.3% in 2016.
Total fixed deposit of the bank in 2015 was BDT 85,146 million that is higher than previous
year. In 2015 growth of fixed deposit is 11%.
Total fixed deposit of the bank as on December 31, 2014 stood at BDT 76,898 million compared
to BDT 73,898 million the previous year. In 2014 growth of fixed deposits was 4%.
Total fixed deposit of the bank as on December 31, 2013 stood at BDT 73,898 million compared
to BDT 62,365 million of previous year. In 2013 growth of fixed deposits was 17%.
Total fixed deposit of the bank as on December 31, 2012 stood at BDT 62,365 million. In 2012
growth of fixed deposits was 16%
Total fixed deposit has a great contribution in total deposit mix. The major portion of total
deposit is fixed deposit.
2012 2016
21% 19%
2015
2013 18%
21%
2014
20%
In 2016, total fixed deposit was 62% of total deposit that is higher than previous year. Total fixed
deposit was 59% of total deposit in 2015 that is lower than other years. In 2014 it was 64% of
total. In 2013 the portion of total fixed deposit was 69% of total deposit mix which is higher than
other years. In 2012 it was 66%.
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Total fixed deposit is a mix of short term, long term and manarah fixed deposit. The percentages
of different types of deposit are given below in the table.
The table has shown that the percentages of fixed deposits mix of last five years. Major portion
of total fixed deposit is long term fixed deposit and manarah fixed deposit and rest portion is
short notice fixed deposit
100%
90%
80%
70%
60% Fixed deposits, Mudaraba, and
Manarah fi_x001f_xed deposits
50%
Short notice deposits, Mudaraba,
40% and Manarah short notice
deposits
30%
20%
10%
0%
2016 2015 2014 2013 2012
In 2016, the amount of Total scheme deposits is BDT 5,859 million which is higher than the
previous year which amount was BDT 4,820 million. The growth rate of scheme deposit was
Total scheme deposits of last five years are given below in graph
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Total Scheme deposits
Total Scheme deposits
5,859,805,417
4,820,464,043
3,930,330,342 3,695,669,038
3,355,876,890
In 2015, Total scheme deposits stood at BDT 4,820 million compared to previous year BDT
3,930 million. The growth rate was
Total scheme deposit was in 2014 BDT 3,930 million that is quite higher than 2013. The growth
rate was
Total Scheme deposit stood at BDT 3.335 million which is lower than both 2013 and 2012.
In 2012 the amount of total scheme deposits BDT 3,695 million. That was higher than 2011. The
growth rate
Total scheme deposits have a contribution in total deposit mix. One portion of total deposits is
collected by deposits under scheme. In 2016 total scheme deposits was 3% of total deposit mix.
In 2015 3% 0f total deposits was collected by scheme deposit. The quantity was same in both
2014 and 2013. But in 2012 it was 4% that was little higher than other four years.
The percentage of total scheme deposits in total deposit mix are given below in the graph
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Total Scheme deposits
2012 2016
23% 20%
2015
2013 20%
18%
2014
19%
Total scheme Deposits are collected through different types of scheme deposit like City
somriddhi, mudaraba deposit scheme, deposit pension scheme, monthly deposit scheme etc.
Their contribution in total scheme deposits are shown in the table
So major portion of total scheme deposit is city shomriddhi. Rest of the deposits has little
contribution in total scheme deposits
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4.3 Interest profit shared/ paid on Deposits
Every bank has to paid interest on deposits that are called interest expense or profit shared on
deposits.
Here is the CBL’s last five years total interest expense on deposits has shown in the below graph
7,318,541,468
During 2016, interest paid on deposits was BDT 8,206 million. It had decreased by BDT 114
million or 1.6% from 2015 despite significant rise in deposit volume by BDT 30,966 million.
And that is caused by the same cut down rates on deposits as per central bank’s regulations.
Interest paid on deposits during 2015 was BDT 8,320 million, an increase over 2014 by BDT
326 million 0r 6%. Interest expenses increased due to the increment of deposit volume
Interest/profit paid on deposits during 2014 was BDT 7,994 million, an increase over 2013 by BDT
137 million (4%). Interest expenses increased due to the increment of deposit volume by 11,230
million. In 2014, Cost of Deposit (COD) improved due to a favorable change in deposit mix and
reduction of rates despite having growth in volume. Cost of Deposit (COD) based on average EOD
balance of the bank stood at 6.9% in 2014 compared to 8.4% in 2013. In 2014, percentage of CASA
stood at 28.8% of the total deposit portfolio of the bank, an improvement from 25% in 2013.
Interest/profit paid on deposits and 2013 was BDT 7,857 million, an increase over 2012 by BDT
538 million (12%). Interest expenses increased due to the increment of deposit volume by 13,398
million and increase of cost of deposit.
Interest paid on deposits during 2012 was BDT 7,318 million, an increase over 2011 by BDT
226 million 0r 4%. Interest expenses increased due to the increment of deposit volume
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4.3.1 Interest on savings Bank Deposits
During 2016, the amount of interest on savings bank deposits was BDT 1,006 million. The
amount was higher compared to 2015 because of rising volume of total savings deposit. Total
interest on savings deposit in 2015 was BDT 949 million that was higher than 2014 which
amount was BDT 732 million. In 2013 the amount was BDT 537 million and it was BDT 454
million in 2012. From 2012 to 2016 the amount of interest on total savings deposits is increased
because the total volume of savings deposits is increased.
The CBL’s last five years interest on savings bank deposits are shown in the below chart
1,006,715,470
949,507,716
732,191,015
537,715,526
454,318,006
Total percentage of interest on savings deposits in total interest expense are given below in the
table
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4.3.2 Interest on Mudaraba/Manarah savings deposits
During 2016, the amount of interest on Mudaraba/ Manarah savings bank deposits was BDT 28
million. The amount was lower compared to 2015 because of decreasing volume of total
Mudarava/ Manarah savings deposit. Total interest on savings deposit in 2015 was BDT 45
million that was higher than 2016 because of increasing volume of Mudaraba/ Manarah savings
deposits. In 2014, total interest paid on Mudaraba/ Manarah savings deposits was BDT 45
million that was similar with 2014. In 2013 the amount was BDT 28 million that was lower than
other four years. Because this year the volume of total Mudaraba/ Manarah deposits was
decreased and that’s why interest paid on this deposits was low. Total interest paid on this
deposit in 2012 was BDT 96 million in which is higher than other four years. From 2012 to 2016
the amount of interest on total Mudaraba / Manarah savings deposits is decreased because the
total volume of this savings deposits is decreased.
The CBL’s last five years interest on Mudaraba/ Manarah savings bank deposits are shown in the
below graph
96,458,422
45,786,835 45,440,116
28,999,855
23,081,950
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4.3.3 Interest on Short notice deposits
In 2016, the amount of interest on short notice bank deposits was BDT 666 million. The amount
was higher compared to 2015 because of rising volume of total short notice deposit. Total
interest on short notice deposit in 2015 was BDT 461 million that was lower than 2016. Because
the volume of total short notice deposits was decreased but the amount was also lower than
2014.In 2014 CBL has paid BDT 562 million interests on total short notice deposits. In 2013 the
amount was BDT 751 million that was higher than both 2015 and 2014 because of increased
amount of total short notice deposits and it was BDT 470 million in 2012 which was lower than
2013. And this year again CBL’s total short notice deposits was decreased.
Total Interest paid on short notice deposits from 2016 to 2012 are shown in the below graph
The percentages of interest on short notice deposit in total interest paid on deposits are given
below chart
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4.3.3 Interest on Fixed Deposits
In 2016, the amount of interest on fixed deposits was BDT 5,647 million. The amount was lower
compared to 2015. Because in 2016, interest rate was decreased as per the regulations of the
Central bank. Total interest on fixed deposit in 2015 was BDT 5,994 million that was higher than
2014. Because the volume of total fixed deposits was increased. In 2014 the amount was BDT
5,912 million that was close to 2015. In 2013, the CBL had paid BDT 5,776 million interests on
fixed deposits. This year the total volume of fixed deposits year was lower than 2014. As a result
the amount of interest paid on fixed deposits was also low.
5,994,122,137
5,912,418,504
5,776,060,972
5,647,169,393
5,555,791,145
Considering all other interest on total deposits, the major portion of interest paid on deposits is
fixed deposits. The percentages of interest paid on fixed deposits in total interest paid on
deposits are shown in the below box
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4.3.4 Interest on Mudaraba term deposits
During 2016, The CBL had paid interest on mudaraba term deposits BDT 90 million which was
lower than other years. In 2016 the bank has decreased there interest rate because of higher
volume of total deposits. As a result the amount of all type of interest on deposits was decreased
comparing to other years. In 2015, the amount was BDT 121 million that is quite higher than
2016 but lower than 2014. Total interest on mudaraba term deposit was stood at BDT 149
million in 2014 which is quite higher than 2015. The bank has paid highest interest on mudaraba
savings deposit in 2013 which amount was BDT 377 million because of higher volume of total
mudaraba term deposits. Though the amount in 2012 is lower than 2013 but higher than other
years and the amount was BDT 303 million.
303,644,920
149,679,373
121,372,216
90,945,066
The percentages of interest paid on mudaraba term deposits in total interest paid on deposits are given
below
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In 2016, the amount of interest on deposits under scheme was BDT 636 million. The amount was
higher compared to 2015 because of rising volume of total scheme deposits. Total interest on
scheme deposits in 2015 was BDT 565 million that was lower than 2016. Because the volume of
total scheme deposits was decreased but the amount was higher than 2014.In 2014 CBL has paid
BDT 441 million interests on total scheme deposits which was lower than both 2016 and 2015
because of lower volume of total scheme deposits. In 2013 the amount was BDT 388 million that
was lower than both 2014 and 2012 because of decreased amount of total scheme deposits and it
was BDT 425 million in 2012 which was higher than 2013. This year again CBL’s total scheme
deposits was increased
441,165,700 425,342,234
388,830,650
contribution of interest on scheme deposit in total interest paid on deposits are shown in
percentage in below table
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In 2016, the amount of interest on Mudaraba monthly benefit scheme deposits was BDT 10
million. The amount was higher than other four years because of rising volume of total mudaraba
monthly benefit scheme deposit. Total interest on this deposit in 2015 was BDT 4 million that
was lower than 2016. Because the volume of total Mudaraaba monthly benefit scheme deposits
was decreased but the amount was higher than 2014.In 2014 CBL has paid BDT 1 million
interests on total mudaraba monthly benefit scheme deposits. In 2013 the amount was also BDT
1 million that was also lower than both 2014 but higher than 2012. In 2012 the amount of total
interest on mudaraba monthly benefit scheme was BDT 48 lacs which was very low comparing
to other four years because of low volume of total mudaraba monthly benefit scheme.
The graph has shown the amount of interest on Mudaraba monthly benefit scheme of last five
years.
4,311,944
1,340,633 1,049,174
485,268
below box has shown the percentages amount in total interest on deposits
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Chapter 05
Conclusion
5.1 Findings
CBL makes so much difference in the deposit in different securities rather than previous year to
cope with market investment composition.
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CBL has more long term deposit than short term deposit, and due to competitive
market MBL has to incur higher cost on their deposits.
CBL has lack of manpower to serve the growing customer demand. So they not are
being able to provide service to the customer in efficient manner.
The clients are bound to submit a lot of documents to the bank to avail Consumer
Credit. The Bank is overloading the clients by charging so much documents and
papers which seems to the clients being harassed by the relevant officer.
In a few case I have seen that the right person isn’t placed in the right place.
5.2 Recommendations
New investment schemes should be introduced to meet customer demands to stay ahead
in competition and better satisfy customer requirements.
The bank has to improve their deposit policy. The deposit of the bank should be more
diversified.
Large investment risk must be minimized and should be emphasis to its SME and
consumer credit scheme so that recovery rate may increase and risk may decrease.
Ensure the use of latest technology in banking operation to meet up the customers
demand.
5.3 Conclusion
It is a great pleasure to have practical exposure to the City Bank Ltd. Without practical
knowledge via academic knowledge, it is not possible to compare the academic knowledge &
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practical knowledge with each other. During the practical orientation period, it is observed that
function of collation front end which helps me a lot to be a professional banker in near future.
The popularity of banks is increasing day by day which leads to increase competition as well. All
the Commercial Banks are offering almost the same products and services and almost same their
operation system. But the ways they provide the services are different from each other. So people
choose their bank according to their satisfaction and need. And they will prefer the bank of
which service is easily accessible and understandable. One the other hand, bank innovate new
products and services to attract their desired customers. In short, CBL is such a Commercial
Bank which is rendering all commercial banking services to the customers in addition to make
available investment policies & SME finance to the millions of needy people of the country.
They believe in developing strong interpersonal relationship with each other. As such, they are
morally bound to provide high quality banking services with the latest technology to obtain
optimum return on shareholder's equity ensuring safety of depositor's money and making all out
efforts to introduce their innovative products to their existing and prospective customers. Banks
always contribute towards the economic development of a country. CBL compared with other
banks is contributing more by investing most of their funds in fruitful projects leading to increase
in production in the field of Export and Import Business. It is obvious that the right thinking of
this bank including establishing a successful network over the country and increasing resources,
will be able to play a considerable role in the portfolio of development of financing in a
developing country like ours.
5.4 Bibliography
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http://click.thecitybankltd.com/
Internal delinquency data of the organization from the MIS department of the city bank
ltd.
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