E-Banking (Agrani Bank)

AN INTERNSHIP REPORT
ON
Impact of online banking on Customer Satisfaction
A Study on Housing State Branch, Agrani bank
Submitted to
Md. Sahedur Rahman

Assistant Professor
Department of Management Studies,
Comilla University, Cumilla-3506
Prepared By
Nilufa Akter
Reg. No. & Exam Roll: 11605057
BBA (10th Batch)
Department of Management Studies
Comilla University
March 8, 2021
Impact of online banking on Customer Satisfaction- A Study on Housing State Branch, Agrani bank
DEDICATED
TO
MY BELOVED PARENTS
DepartmentofManagementStudies,ComillaUniversity Page a
Letter of Transmittal
February 08, 2021

Md. Sahedur Rahman
Assistant Professor
Department of Management Studies,
Comilla University, Cumilla-3506
Subject: Submission of an Internship Report.
Dear Sir,
It’s my pleasure that, I have completed my internship on Agrani Bank Ltd., as a part of my study under
your guidance and supervision. Here is my overview on the “Impact of online banking on Customer
Satisfaction- A Study on Housing State Branch, Agrani bank”. I feel fortune enough and give you
the special thank that I have got your approval to prepare my report on the above topic. It is a great
experience for me to prepare the report. I have tried to explain my learning and experience with the
knowledge gathered by three months briefly in this report.
I have great hope that the report will meet your expectation and aid you in getting a clear idea about the
report. Please do call me for any clarification regarding the report, if required. Please accept the report.
Yours Sincerely
.………………..
(Nelufa akter)
DepartmentofManagementStudies,ComillaUniversity Page i
Student’s Declaration
I, Nilufa Akter, a student of Department of Management Studies, Reg. No. & Exam Roll: 11605057,
BBA (10th Batch), Comilla University, thereby declare that the report of internship titled “Impact of
online banking on Customer Satisfaction- A Study on Housing State Branch, Agrani bank.” is
prepared by me after the completion of three months of internship with Agrani Bank Ltd., Housing State
Branch and a comprehensive study of the existing activities of Agrani Bank Ltd. and its implementation.
I also declare that the paper is my original work and is prepared as a part of study requirement and is not
use for any other purposes harmful for the interest of the company.
………………………….
(Nilufa Akter)
DepartmentofManagementStudies,ComillaUniversity Page ii
Certificate
DepartmentofManagementStudies,ComillaUniversity Page iii

Declaration of Supervisor
This is to certify that the report entitled “Impact of online banking on customer satisfaction - A
Study on Agrani Bank” presented here has been prepared by Nilufa Akter bearing the Registration No:
11605057 and ID No: 11605057 for the submission to the Department of Management Studies, Comilla
University, Cumilla in the partial fulfillment of the requirements for the degree of Bachelor of Business
Administration (BBA). This report is suitable for submission.
I wish her every success in life.
……………………......
Md. Sahedur Rahman

Assistant Professor,
Management Studies
Comilla University
DepartmentofManagementStudies,ComillaUniversity Page iv
Acknowledgement
At the beginning I would like to convey my sincere appreciation to almighty for giving me the
strength & ability to finish the task within the planned time. I would like to express my gratitude to all
the people those were involved both directly and indirectly in the preparation of this internship report. I
apologize to the people whose names that I have not mentioned, and their contribution is highly
appreciated by me.
First of all, I would like to thank my teacher Md. Sahedur Rahman, Assistant Professor,
Department of Management Studies for agreeing to be my internship supervisor and allowing me to
write the internship report on the proposed topic. In the report proposal, he inserted necessary
corrections and suggestions. Later on, I based my work on those suggestions. I would like to thank Mr.
Jakir Ahmed (Assistant Manager, HR) at Agrani Bank Ltd. Housing State Branch, Cumilla. He posed
relentless and undaunted on whole request I made to him regarding finding out of current information
about the “Impact of online banking on Customer Satisfaction- A Study on Housing State Branch,
Agrani bank”.
I want to express my heartiest gratitude to all employees of Agrani Bank Ltd. and my friends
with whose co-operation I have completed my internship successfully. They helped me while preparing
the study by giving their suggestions, assistance & supply of information which were valuable for me.
Finally, I would like to thank our department, Department of Management Studies for giving me the
opportunity to gather practical knowledge through internship program.
DepartmentofManagementStudies,ComillaUniversity Page v
Acronyms
 A/C Account
 AD Authorized Dealer
 BB Bangladesh Bank
 BOE Bill of exchange
 BG Bank Guarantee
 CA Credit Application
 CEO Chief Executive Officer
 CIB Credit Information Bureau
 CIF Cost Insurance & Freight
 CRM Credit Risk Management
 DA Disbursement Authorization
 FSS Financial Spread Sheet
 HP Hire Purchase
 KYC Know Your Customer
 MIS Management Information System
 PAD Payment against Document
 PBL Prime Bank Limited
 SAFA South Asian Federation of Accountants
 SME/BUB Small and Medium Enterprise
DepartmentofManagementStudies,ComillaUniversity Page vi
Table of Content
Sl. No. Topics Page No.

Letter of Transmittal i
Student Declaration ii
Certificate iii
Dedication of Supervisor iv
Acknowledgement v
Acronyms vi
Executive Summary ix
Chapter- 1 Introduction
1.0 Introduction of Online Banking 1
1.1 Background of the study 1
1.2 Purpose of the study 2
1.3 Methodology of the Study 2
1.4 Limitation of the study
Chapter-2 Literature Review
2 Information about Online Banking 3
Chapter-3 Overview Agrani Bank Limited
3.1 History of Agrani Bank Limited 4
3.2 Vision & Mission 4
3.3 Corporate Profile 5
3.4 Some Notable Feature of Bank 5
3.5 Hierarchy of Agrani Bank Limited 6
3.6 Services of Agrani Bank 7-10
3.7 Product of Agrani Bank 11-12
Chapter-4 An overview of Online Banking
4.1 A brief idea about Online Banking? 14
4.2 The history of Online Banking 14
4.3 Product & Services of Online banking 15
4.4 Types of Online Banking 15
4.5 The risk management of Online Banking 16-17
Chapter-5 Online Banking in Bangladesh
DepartmentofManagementStudies,ComillaUniversity Page vii

5.1 Structure of Online banking 18

5.2 Online banking facilities given by different bank in 19
Bangladesh
5.3 Online Banking 19
5.4 The Common feature of e-banking in Bangladesh 20-21
Chapter-6 Online Banking Service of Agrani Bank

6.1 General Online banking Services 22
6.2 Feature of SBL Q-cash ATM network 22
6.3 Debit/Credit card services 23-24
Chapter-7 Analysis & Findings 25-31
Chapter-8 Conclusion & Suggestion 32
References
Appendix
DepartmentofManagementStudies,ComillaUniversity Page viii

Executive Summary
The internship program is the important and essential part of BBA program. I was placed to
Agrani Bank Ltd. for three months for my internship program. During this period, I have worked
closely with the employee of Agrani Bank Ltd. Housing State Branch, Cumilla. Through internship
program I have learnt a lot of practical things. Agrani Bank Ltd. one of the best and largest bank with
newest addition banking sector in Bangladesh.
My internship report is divided into five parts i.e. Introduction, Organizational Overview,
Online Banking Of Bangladesh, An Overview of Online Banking, Online Banking Service at Agrani
Bank Ltd. Research Methodology & Literature Review, Analysis and Findings, Recommendations &
Conclusion.
In the present world money is circulated all over the globe. Globalization, technological
advances and other factors money is circulating unimaginably .Financial Institutions mainly Banks play
a Pivotal role in matching a depositor and lenders and channeling money and making the Economy more
efficient. Although the history of Banking goes back to the 14th century in Europe but Banks are now
everywhere. Banks in Bangladesh play a significant role compared to other financial Institutions.
Online Banking is a service offered to the customers which includes viewing the balances on
accounts, checking the transactions, downloading useful information, transfer of funds, paying third
parties, making loan applications etc from a secured website of the bank. Online Banking has opened up
a new field of competition for banks. To operate online an individual needs the customer number and
password. Online Banking has started in the 1980s but it is relatively a new concept in Bangladesh.
Agrani Bank Limited, a state owned leading commercial bank with 953 outlets strategically
located in almost all the commercial areas throughout Bangladesh, overseas Exchange Houses and
hundreds of overseas Correspondents, came into being as a Public Limited Company on May 17, 2007
with a view to take over the business, assets, liabilities, rights and obligations of the Agrani Bank which
emerged as a nationalized commercial bank in 1972 immediately after the emergence of Bangladesh as
an independent state. Agrani Bank Limited started functioning as a going concern basis through a
Vendors Agreement signed between the ministry of finance, Government of the People's Republic of
Bangladesh on behalf of the former Agrani Bank and the Board of Directors of Agrani Bank Limited on
November 15, 2007 with retrospective effect from 01 July, 2007
DepartmentofManagementStudies,ComillaUniversity Page ix
Chapter- 1
Introduction of Online Banking
DepartmentofManagementStudies,ComillaUniversity Page 1
Introduction of Online Banking
In the present world money is circulated all over the globe. Globalization, technological
advances and other factors money is circulating unimaginably. Financial Institutions mainly
Banks play a Pivotal role in matching a depositor and lenders and channeling money and making
the Economy more efficient. Although the history of Banking goes back to the 14th century in
Europe but Banks are now everywhere. Banks in Bangladesh play a significant role compared to
other financial Institutions.
The competition in the banking industry has intensified more than ever before. Global
financial crisis, share market crash, recessions and other factors affected the banking industry. So
banks should position themselves at a unique place in the minds of the customers by offering
attractive offers such as higher interest rates or by offering superior service to the customers.
Services include financial advice, flexible rates or dates of payment, portfolio management etc.
Online Banking is a service offered to the customers which includes viewing the balances
on accounts, checking the transactions, downloading useful information, transfer of funds,
paying third parties, making loan applications etc from a secured website of the bank. Online
Banking has opened up a new field of competition for banks. To operate online an individual
needs the customer number and password. Online Banking has started in the 1980s but it is
relatively a new concept in Bangladesh.
Customer satisfaction is positively related to Online Banking. It is believed that

customers are the king of the market place today. The competition in the banking industry is
intensifying and it is the bank’s priority to satisfy its respective customer.
1.1 Background of the study:

This internship report is originated as a partial fulfillment of the BBA program. This report is a
mandatory requirement for completion of BBA. I have worked at Agrani Bank at Housing State
Branch for 45 days and the experience of working at Agrani Bank has helped me to match my
theoretical knowledge with practical understanding. As an intern of Agrani Bank I was provided
with the topic “Impact of online banking on Customer Satisfaction- A Study on Housing
State Branch, Agrani bank”
1.2 Purpose of the Study:

To evaluate Online Banking System of Agrani Bank Limited.
To find out the customers demand from Agrani Bank’s Online Banking service.
To identify the satisfaction level.
To identify the relationship between Online Banking and customer satisfaction.
To find out the problems and give some necessary suggestions.
1.3 Methodology of the Study:

Data collection:
Primary data was collected from the user of E bank services of Agrani bank, Housing
State Branch by conducting a survey on their requirement. Secondary data was collected from
various web site, previous work on Agrani Bank. Survey was conducted by using likert scale.
Sampling method:
Random sampling method was used. Sample was collected from the customers who
regularly or frequently visit the branch office to take services provided by bank. Sample size:
Sample size is 20. From these 20 customers 50% are male and 50% are female respondent.
Sample size:
Sample size is 20. From these 20 customers 50% are male and 50% are female
respondent.
Data analysis:
Data was analyzed by using mean, mode and percentage. To complete the study I did not
use any satirical software.
1.4 Limitations of the study:

1. Very small sample size
2. Less time to complete report
3. Data Demands to be processed in such high profile statistical tools such as STATA or SPSS
4. Some respondents were neither motivated nor interested in expressing their honest opinions.
5. Results are calculated manually
Chapter- 2
Literature Review
Literature Review
Online Banking
Online Banking is the fastest growing service that banks can offer in order to gain and
retain new customers (Moody, 2002).
The rise of Online Banking is also due to its number of benefits for both the provider and
the customer as well. From the bank’s perspective these are mainly related to cost savings
(Sathye, 1999; Robinson, 2000) and Online Banking remains one of the cheapest and more
efficient delivery channels (see Pikkarainen et al., 2004).
Arunachalam and Sivasubramanian (2007) content that Internet banking is where

customer can access his or her bank account via the Internet using PC or mobile phone and web-
browser. Ongkasuwan and Tantichattanon (2002) defined Internet banking service as banking
service that allows customers to access and perform financial transactions on their bank accounts
from their Computers with Internet connection.
On-line, real-time banking services have now become a birth right of the customer as the
customer demands the flexibility of operating an account in any branch of a bank irrespective of
which branch the account was domiciled (Bank Away, 2001).
E-service quality can be explained as an overall customer evaluation about e-service

delivery in the marketplace which is virtual Santos, J. (2003).
Customer Satisfaction
A satisfied customer will repeat the purchase of the product and convey positive
messages about it to others (Dispensa, 1997; Metawa and Almossawi, 1998). The complex
nature of services coupled with the growing province of the service sector has increased the need
for better customer satisfaction. Banking and financial services are an important part of the
service industry (Mishkin, 2001).
Customer satisfaction is typically defined as a post consumption evaluative judgement
concerning a specific product or service (Gunderson, Heide and Olsson, 1996. The most widely
accepted conceptualization of the customer satisfaction concept is the expectancy
disconfirmation theory (Mc Quitty, Finn and Wiley, 2000). According to Saha and Zhao (2005),
customer satisfaction is defined as a collection of outcome of perception, evaluation and
psychological reactions to the consumption experience with a product/service. In other words,
Saha and Zhao further defined customer satisfaction as a result of a cognitive and affective
evaluation where some comparison standard is compared to the actually perceived performance.
If the performance perceived is less than expected, customers will be dissatisfied. On the other
hand, if the perceived performance exceeds expectations, customer will be satisfied.
Customer satisfaction has been a popular topic in marketing practice and academic research since
Cardozo's (1965) initial study of customer effort, expectations and satisfaction. Despite many
attempts to measure and explain customer satisfaction, there still does not appear to be a
consensus regarding its definition (Giese and Cote, 2000). Customer satisfaction is typically
defined as a post consumption evaluative judgement concerning a specific product or service
(Gundersen, Heide and Olsson, 1996). It is the result of an evaluative process that contrasts
prepurchase expectations with perceptions of performance during and after the consumption
experience (Oliver, 1980).The most widely accepted conceptualization of the customer
satisfaction concept is the expectancy disconfirmation theory (McQuitty, Finn and Wiley, 2000).
The theory was developed by Oliver, who proposed that satisfaction level is a result of the
difference between expected and perceived performance. Satisfaction (positive disconfirmation)
occures when product or service is better than expected. On the other hand, a performance worse
than expected results is dissatisfaction (negative disconfirmation). Studies show that customer
satisfaction may have direct and indirect impact on business results. Luo and Homburg (2007)
concluded that customer satisfaction positively affects business profitability. The majority of
studies have investigated the relationship with customer behaviour patterns (Dimitriades, 2006;
Olorunniwo et al., 2006; Chi and Qu, 2008; Faullant et al., 2008). According to these findings,
customer satisfaction increases customer loyalty, influences repurchase intentions and leads to
positive word-of-mouth. Given the vital role of customer satisfaction, it is not surprising that a
variety of research has been devoted to investigating the determinants of satisfaction. Satisfaction
can be determined by subjective (e.g. customer needs, emotions) and objective factors (e. g.
product and service features). Applying to the hospitality industry, there have been numerous
studies that examine attributes that travellers may find 360 important regarding customer
satisfaction. Atkinson (1988) found out that cleanliness, security, value for money and courtesy
of staff determine customer satisfaction. Knutson (1988) revealed that room cleanliness and
comfort, convenience of location, prompt service, safety and security, and friendliness of
employees are important. Barsky and Labagh (1992) stated that employee attitude, location and
rooms are likely to influence travellers' satisfaction. A study conducted by Akan (1995) showed
that the main determinants of hotel guest satisfaction are the behaviour of employees, cleanliness
and timeliness. Choi and Chu (2001) concluded that staff quality, room qualities and value are
the top three hotel factors that determine travellers' satisfaction.
Khondaker, M.Saifuddin. & Mir, M. Zaman. - [Customer satisfaction measurement for the state-
owned banks in the developing countries: The case of Bangladesh.] Journal of Business and
Policy Research, 6 (2), 153-172, 2011
Customer Satisfaction has become an important aspect of measuring performance. Particularly

for the banking and finance industry. As most banks and finance organizations offer similar
products and services. Improving customer satisfaction and loyalty is the most important factor
in maintaining as well as increasing market share for these organizations. Customer satisfaction
is a grossly neglected area for performance measurement in almost all Least Developed
Countries (LDCs) and Bangladesh is no exception. Like most LDCs. Bangladesh is also coming
under pressure from the IMF. World Bank, ADB etc. to reform its inefficient financial sector.
Anecdotal evidence suggests that state-owned commercial banks (SCBs) have lost their market
share and are near to closure because of their poor service quality as perceived by their
customers. In contrast private and foreign commercial banks working in the same social-
economic and cultural settings are growing rapidly with higher profits and market share.
Puja Khatri &Yukti Ahuja (2008) , Study of customer satisfaction in public sector and private
sector banks of India, International Journal of Engineering and Management Sciences
(I.J.E.M.S.), VOL. 1(1):, pp. 42-51.
Puja Khatri &Yukti Ahuja (2008) have analyzed customer satisfaction in public and private
sector banks and revealed that the Indian banking sector has witnessed heightened competition
with so many banks coming up with all their potential and using their global strength to their
advantage in order to establish themselves in the market. Private Banks seem to have satisfied its
customers with good services and they have been successful in retaining its customers by
providing better facilities than Public sector Banks. But, still Private Banks need to go a long
way to become customer‘s first preference. In an economy of innovative technologies and
changing markets, each and every service quality variable has become important. New financial
products and services have to be continuously introduced in order to stay competent. Success
mantra could be customer centric orientation, where the organization builds long term strategic
relationships with its customers and Private sector Banks have been successful in achieving such
relationship with customers however public sector banks have to improve in this area. Private
Banks need to concentrate more on their credit facilities and insurance services since customers
do not have a very good opinion about these facilities being offered by Private Banks. Public
sector banks enjoy the trust of the customers, which they have been leveraging to stay in the race
however they need to improve their service quality by improving their physical facility,
infrastructure and giving proper soft skill trainings to their employees. The efforts have to be
made in the direction of enhancing the retail banking experience. That is why a well performed
service encounter may even overcome the negative impression caused by poor technical quality
as well as generate positive word-of-mouth, particularly if customers witness that employees
have given their best in order to satisfy them during a contingency. Employees are part of the
customer service process, which is the key to success for any bank. It is these encounters with
customers during a service that are the most important determinants of overall customer
satisfaction, and a customer‘s experience with the service will be defined by the brief experience
with the firm‘s personnel and the firm‘s systems. Any laxity at the end of the employees can lead
to customer defect.
Kazi Omar Siddiqi (The Drivers of Customer Loyalty to Retail Banks: An Empirical Studyin
Bangladesh, Industrial Engineering Letters, ISSN 2224-6096 (print) ISSN 2225-0581 (online)
Vol 1, No.1, 2011),
Kazi Omar Siddiqi (2011) said In Bangladesh; no study has yet investigated the above mentioned
interrelationship. The purpose of this study is to fill this gap. A review of literature was
conducted to find out the relationship between service quality, customer satisfaction, corporate
image, and customer value and customer loyalty. The literature review confirms the positive
relationship between each of the study constructs. A survey was conducted to collect data. The
sample size of 100 retail banking customers was drawn from two public and four private banks in
Bangladesh. A set of developed questionnaire distributed to retail bank customers in Bangladesh.
Five post graduate students (interviewers) administered the survey. They administered the survey
in Dhaka and Comilla during four weeks period in November and December, 2010, between 5 th
November to 3 December, 2010. The result shows that all the study constructs are positively
correlated with each other in the retail banking settings in Bangladesh. The researcher has
removed the customer satisfaction item from the scale due to its cronbach alpha value. The result
confirms that customer value is the most important drivers of customer loyalty in the retail
banking sector in Bangladesh.
Dr. Snehalkumar H Mistry (Measuring Customer Satisfaction in Banking Sector), AsiaPacific

Journal of Marketing & Management Review, ISSN 2319-2836 Vol.2 (7), July (2013)
With the economic growth of country is on accelerating mode, role of banking industry is also
important in this growth. With the expansion of banking services to peoples excluded from
banking services to large corporate searching fund for their activities, makes the importance of
banking services. New technologies are being introduced and there is always a fear of economic
uncertainties. Fierce competition, more demanding customers and the changing climate have
presented an unparalleled set of challenges (Lovelock, 2001) for banks in the country. Therefore,
customer satisfaction is the key for many banks to survive in competition. The purpose of this
paper is to identify the factors affecting customer satisfaction in Banks and analyze their effects
on the level of customer satisfaction.
Md. Masukujjaman & Afia Akhter (Quality of Categorized Service and Customer Satisfaction in
Banking Industry: An Empirical Study on Private Commercial Banks in Bangladesh), Journal of
Business and Technology, Volume– V, Issue– 02, July December, 2010
The main objectives of the study are to evaluate the customer satisfaction of the service quality
and to assess whether bank services provided by the institutions are satisfactory to Bangladeshi
customers especially in term of service categories like general banking, credit banking and
foreign exchange banking services. The study also examines empirically the Determinants of
service quality in Bangladesh.
A questionnaire for such purpose was designed and different statistical methods were applied to
analyze the collected data. From the study it is found that the overall service quality in private
commercial bank in Bangladesh is moderate, where service quality in general banking services is
better than the credit banking services and foreign exchange services though its quality is not too
bad . In addition, top ranked banks have high service quality in all categories of services and the
lower raked banks are struggling seriously with credit and foreign exchange services. So, as
policy recommendation, the banks especially the lower ranked banks should give more emphasis
on both the credit and foreign exchange banking services.
Sagib, G.K. &Zapan, B. (Bangladeshi mobile banking service quality and customer satisfaction
and loyalty‖, Management & Marketing) Challenges to the Knowledge Society, Vol. 9, No. 3,
pp. 331‐346, (2014),
The rapid increase in the number of mobile phone users and the growing popularity of mobile
banking services in Bangladesh had a twofold outcome: it allowed financial institutions to tap
into the areas of the market previously untouched by banking services, but it also brought along
for their marketers the challenges of customer retention. The existent literature names the
perceived service quality as a powerful antecedent of customer satisfaction and retention. But, as
the field is relatively new in Bangladesh, the major challenges for marketers are to understand
what customers perceive as quality dimensions in mobile banking services, and what impact
these dimensions have on customer satisfaction and retention. Although the literature on service
quality is abundant, very little research has been conducted on the evaluation of the quality of
services delivered through non-branch banking. This study is an attempt to explore the perceived
service quality dimensions and their impact on customer satisfaction. Adopting from the existing
literature a set of dimensions of quality and using a self-administered questionnaire survey and a
confirmatory factor analysis, we confirm that reliability and responsiveness, assurance and
security, convenience of location, and efficiency and easiness to operate are dimensions of
perceived quality for mobile banking services in the context of Bangladesh. In addition, the
regression analysis reported that service quality as a whole is a strong antecedent of customer
satisfaction, but only three dimensions have a positive influence on satisfaction(reliability and
responsiveness, efficiency and convenience) and two of them on customer retention (reliability
and efficiency). Inspire of the study‘s limitations, the results work as stepping stones for future
research in this area.
Chapter- 3
Overview of
Agrani Bank Limited
Overview of Agrani Bank Limited
3.1 History of Agrani Bank Limited

Agrani Bank Limited, a state owned leading commercial bank with 953 outlets
strategically located in almost all the commercial areas throughout Bangladesh, overseas
Exchange Houses and hundreds of overseas Correspondents, came into being as a Public Limited
Company on May 17, 2007 with a view to take over the business, assets, liabilities, rights and
obligations of the Agrani Bank which emerged as a nationalized commercial bank in 1972
immediately after the emergence of Bangladesh as an independent state. Agrani Bank Limited
started functioning as a going concern basis through a Vendors Agreement signed between the
ministry of finance, Government of the People's Republic of Bangladesh on behalf of the former
Agrani Bank and the Board of Directors of Agrani Bank Limited on November 15, 2007 with
retrospective effect from 01 July, 2007.
Agrani Bank Limited is governed by a Board of Directors consisting of 10 members

headed by a Chairman. The Bank is headed by the Managing Director & Chief Executive
Officer; Managing Director is assisted by Deputy Managing Directors and General Managers.
The bank has 11 Circle offices, 36 Divisions in head office, 53 zonal offices and 953 branches
including 34 corporate , 42 AD (authorized dealer) branches and 5 subsidiary companies.
Agrani Bank Limited (ABL) is the first state-owned Commercial Bank in

Bangladesh to introduce Agent Banking. Currently ABL has 200 agent booths who are
operating Agent Banking activities around the rural areas of Bangladesh. In Agrani Bank
Limited, Islamic Banking system is operated under 'Islamic Banking Unit' since February 28,
2010 through 5 Islamic Banking Windows.
3.2 Vision & Mission Vision:
Socially committed leading banking institution with global presence.
Mission:
Dedicated to extend a whole range of quality products that support divergent needs of
people aiming at enriching their lives, creating value for the stakeholders and contributing
towards socio-economic development of the country.
3.3 Corporate Profile
Name of the Company Agrani Bank Limited.

Chairman Dr. Zaid Bakht
CEO & Managing Director Mr. Mohammad Shams-Ul Islam
Deputy Managing Director Mr. Md. Anishur Rahman
Legal Status Public Limited Company
Genesis Emerge as Nationalize Commercial Bank in 1972, Following
the Bangladesh Bank, Order 1972 (PO No. 26 of 1972)
Date of Incorporation 03 June 2007
Registered Office 9/D Dilkusha Commercial Area, Dhaka-1000
Authorized Capital 4500
Paid Up Capital 3112
Number of employee 13269
Number of Branches 953
Phone-PABX 880-2)9566153-54,956610-69, 9566074-75
FAX (+8802) 956 2346, 956 3662
Website www.agranibank.org
E-mail agrani@agranibank.org
3.4 Some notable feature of Bank

Agrani Bank Limited is governed by a Board of Directors consisting of 10 members headed
by a Chairman. The Bank is headed by the Managing Director & Chief Executive Officer; Managing
Director is assisted by Deputy Managing Directors and General Managers. The bank has 11 Circle
offices, 36 Divisions in head office, 53 zonal offices and 953 branches including 34 corporate , 42
AD (authorized dealer) branches and 5 subsidiary comapanies.
Agrani Bank Limited (ABL) is the first state-owned Commercial Bank in Bangladesh
to introduce Agent Banking. Currently ABL has 200 agent booths who are operating Agent
Banking activities around the rural areas of Bangladesh. In Agrani Bank Limited, Islamic Banking
system is operated under 'Islamic Banking Unit' since February 28, 2010 through 5 Islamic Banking
Windows.
3.5 Hierarchy of Agrani Bank Limited

Management
The management of the bank is vested on a board of directors, subject to overall
supervision and directions on policy matters by the board which is constituted in terms of
Bangladesh bank (Nationalization) Order 1972 (Figure-.....). Board of directors, constituted by
seven members has authority to organize, operate and manage its affairs on commercial
consideration within the board policy of government. There are directors appointed by the
government. Other members of the board including MD are also government appointed out of
that at least three have the experience in the field of Finance, Banking, Trade, Commerce,
Industry and Agriculture. The managing director is the Chief Executive of bank. He executes all
the activities under the direction of board. All line and staff personnel of banks are own
recruitment except member of board of Direction.
Organization Structure:
Agrani Bank is the largest nationalized commercial bank of Bangladesh. It has 1187
branches throughout the country. It has also two overseas branches. The Head Office of the bank
is located at the Motijheel commercial are, Dhaka. The Divisions are headed by the DGMs and
the departments are by AGMs. There are also many sections under every department in the Head
Office. A DGM is the chief of the Principal office and an AGM usually runs a regional office.
Principal offices are the local points of the bank’s administrative zone in the districts. The
regional offices are under control and supervision of principal offices. The offices are situated at
thana level within the districts. The corporate branches are nearly equivalent to the GM office
and usually headed by the DGMs. They provide all the banking services such as general banking,
loans & advances etc. Functional hierarchy of Agrani bank is given below:
3.6 Services of Agrani Bank Limited:

Principal Activity of the Bank:
The principal activities of the bank are
• To facilitate and handle all kinds of commercial banking services to its customers
authorized by Bangladesh Bank.
• To perform Government Treasury functions and also act as an agent of Bangladesh
Bank.
• To export and import trade of Bangladesh with other countries under various
agreements.  International banking.
Subsidiary:
A subsidiary company named Agrani Exchange co. Inc. was incroporated on 4 April,
1994 under laws of the state of New York, Department of State, licenced on 17 October, 1994 by
the State of New York Banking Department and commenced operation as an International
Money Remitter from 12 December, 1994.
Associate:
On 4 November, 1998 Agrani Bank notified the financial Service Authority of the UK of
its intention to voluntarily surrender the banking license for Agrani Bank UK branch with effect
from June 30, 1990. Agrani Bank UK branch had extinguished all its retail deposits by 30 June,
1999 and is not permitted to accept any further deposits from the date. Bur a representative was
there till 7 December, 2001. A subsidiary money remitting company under the name of Agrani
Trade and Finance (UK) Limited has been incorporated under the UK company act of 1985. The
company has been allowed to start its function as a bank from 7 December, 2001 (the operation
activities was started on 10 December, 2001) by the Financial Service Authority of UK changing
its name as Agrani Bank (U.K.) Ltd. 51% share capital of the newly renamed company is held by
the Peoples’ Republic of Bangladesh and remaining 49% by Agrani Bank.
Account Section:
This is a very much crucial section for each business concern. As such this is a crucial
department for a commercial bank. Records of all the transactions of every department are
maintained here. Accounts section verifies all financial accounts and contents of transactions.
Every working day all the accounts are balanced and reconciled to remove and discrepancy. The
overall activities of accounts section are as follows:
 Record all transactions in the cash book.

 Record all transactions in general and subsidiary ledger.
 Prepare daily fund function, weekly position, periodic statement of affairs etc.
 Prepare necessary statements for reporting purpose.
 Make salary statement and pay salary.
 Pay all expenditures on behalf of the branch.

 Branch to branch fund remittance and support for account treatment.
 Budgeting for branch.
 Make charges for different types of duties.
Ancillary Services
Agrani Bank Limited offers multiple special services with its network of branches
throughout the country in addition to its normal banking operations.
Collection:
Gas bills
Electricity bills
Telephone bills
Water/sewerage bills
Municipal holding tax
Passport fees,
visa fees and travel tax
Customs & excise
duties
Source tax & VAT
Jakat fund
Hajj deposit
Land development tax
Payment:
 Pension of employees of Government and other corporate bodies

 Bangladesh Bank employees pension
 Army pension
 British pension Students’ stipend/scholarship
 Govt. & Non-Govt. teachers’ salary
 Food procurement bill on behalf of the Govt.
Social Services:
Old age allowances Widows, divorcees and destitute women allowances
Freedom fighters’ allowances
Rehabilitation allowances for acid survival women
Maternal allowances for poor women
Disability allowances
Sale & Encashment/Purchase:
 Savings Certificates
 ICB Unit Certificates
 Prize Bonds
 Wage Earner’s Development Bonds
 US Dollar Premium & Investment Bond
 Lottery tickets of different Semi-Govt. and Autonomous Bodies Sanchaypatra
 Public Service Commission’s application form
 Judicial Service Commission’s application form
 Exchange of soiled/torn notes
Misc. Services:
 Bank a/c information of tax payee client according to demand of NBR
 Local Governance Support Project
 Enlist of Non Government Insurance Company
Other Activities
Memorandum of Understanding (MOU):
A memorandum of understanding has been signed by the bank with Bangladesh Bank on
30.06.2004. The memorandum embodies some specific conditions to be fulfilled regarding
monitoring and supervision of loans and advances including recovery of classified loans.
Risk Management:
Like any other business, risks are also inherent in banking business. But the risks are
complex and multidimensional. Although remarkable progress has been made in the field of risk
management in international areas, no structural policy development in this matter has yet been
made in the banking sector. In this perspective, Bangladesh Bank has identified 5 (five) core
areas relating to banking operations and issued necessary guidelines in 5 areas:
Credit risks
Asset and liability/balance sheet risks
Foreign exchange risks
Money laundering risks and
Internal control and compliance risks.
Training:
Agrani Bank staff college, Dhaka along with three institutes at Chittagong, Rajshahi,
Khulna and one training center at Bogra have been conducting training programs covering total
banking activities in order to impart training to all categories of officers and staff of Agrani
Bank.
Library:
Agrani Bank central library is replete with a huge collection of books on diverse and
multifarious discipline. The library has also been enriched with the most recently published
books on Banking, Management, Accounting, agriculture, Industrial Finance, Economics,
Computer, and on many other disciplines and its collection is increasing every year.
Customer Service:
To ensure qualified customer service Agrani Bank has started in addition to
computerization corporate client service and one stop service. To facilitate the foreign exchange
activities Agrani Bank has launched SWIFT (Society for Worldwide Interbank Finance and
Telecommunication) system in its 12 branches. The bank has launched Website, Reuter service,
Internet service, and Ready cash service. The bank has taken a plan to launch shared ATM
system in various important places.
3.7 Products of Agrani Bank Ltd

 Export credit (Pre-shipment & Post shipment)
 Facilitating supplier’s credit
 LCs (Letters of Credit)
 Guarantees in foreign currency
- Bid bond
- Performance guarantee
- Advance payment guarantee
 Bill purchasing/discounting
 Remittance, collection, purchases and sales of foreign currency & traveler’s cheques
 NRAT (Non-Resident Account in Taka)
 NFCD A/C (Non-Resident Foreign currency Deposit)
 RFCD A/C (Resident Foreign Currency Deposit)
 Convertible and non-convertible taka account
 Forward contracts
 Correspondent banking relations
The products and services are provided through a well-established large network of authorized
branches all over the country.
Types of Account:
Accounts department is the most important functional area of this branch. The following
types of accounts are maintained in this bank:
1. Fixed deposits A/C
2. Short term deposits A/C
3. Deposit pension scheme (DPS) A/C
4. Agrani Bank special deposit & pension scheme A/C
5. Savings deposits A/C
6. Current deposits A/C Call deposits A/C and
7. Sundry deposit Accounts.
Remittance:
The system of transmitting or sending money from one branch to another branch of the
same bank or from one bank to another bank within a country or outside the country is known as
remittance. It is one of the important functional areas of a bank. A bank can earn handsome fees
as commission from the dealings of money remittance. During my internship program I have
gathered practical experience about how money is remitted from one branch to another branch of
a bank or from one bank to another bank.
Types of Remittance:
Remittance can be of two types:
A) Inland Remittance
B) Foreign Remittance
A) Inland Remittance:
When money is remitted within a country through proper banking channel, it is termed as
inland remittance. Agrani Bank, Rajshahi medical college hospital Branch deals a lot of inland
remittance at every working day.
a. Modes of Inland Remittance:
1) Demand Draft (DD):
DD is the most widely used instrument of remitting fund. It is order to pay money
drawn by one branch of a bank upon another branch of same bank for a particular amount of
money that is payable to order and demand.
2) Mail Transfer (MT):
MT is another widely used instrument of remitting fund from one branch of a bank to
another branch of the same bank. It is not used to remit fund from one bank to another. MT is
nearly same as DD.
3) Telegraphic Transfer (TT):
TT is the fastest means of remitting fund between two branches of the same bank. Fund
cannot be remitted from one bank to another bank through TT.
B) Foreign Remittance:
The procedure to transfer money from one country to another country through bank or
other govt. authorized agencies is called foreign remittance. The Agrani Bank, Mirpur Shilpa
Elaka Branch, Dhaka does not provide foreign remittance facility to its customer directly.
3.8 Duties Performed in the General Banking:

General banking is the one of the most important department of every banking
transaction. During the internship period I learn most this section. I did my work in the following
section under general banking Division.
1. Account opening.
2. Account closing.
3. Cheque Issue.
4. Local Remittance.
5. Clearing House Section.
6. Dispatch section.
Chapter- 4
An Overview of Online Banking
An Overview Of Online Banking
Internet:
The internet is the network of networks. It is a global system of interconnected computer
networks that uses the standard internet protocol suite (Transmission Control Protocol/Internet
Protocol) or (TCP/IP). The internet consists of billions of public, private, academic, business and
government networks ranging from a local to a global scope. These networks are linked by a
broad range of electronic, wireless and optical networking technologies. The internet has become
a necessity in every field. The importance of internet has reached to a new level as it carries
inter-linked Hypertext documents of the World Wide Web and a wide range of important
information resources and sources. The internet not only has helped many professionals in their
respective fields by disseminating and sharing information but has also reshaped the traditional
communications of telephone, music, television etc. E-mail or electronic mail has helped
business and individuals to communicate in a much cheaper way. Instant messaging has made
communications much easier than e-mails. Users can exchange messages using their Personal
Computers, laptops, PDA, Tabs , mobile phones etc in real time. The website technology has
allowed users to read news , books or other information which is accessible via a network. A web
page is a document usually written in plain text. However a web page is interspersed with
formatting instructions of Hypertext Mark Up Language (HTML) or (XHTML). The pages of a
website can be accessed from a simple Uniform Resource Locator called the web address. The
website Technology has allowed blogging and web feeds. Social Networking has increased
human interactions more than ever before. The internet has also users who are located in distant
places to talk via the VOIP or Voice over Internet Protocol. Millions of users of the internet talk
or chat with each other using the internet technologies. The internet has helped doctors to carry
out distant operation via teleconferencing or using instructions on a robot through the internet to
carry out a operation surgery on a patient on the other side of the world. E-COMMERCE and
online shopping has enabled the formations of new business .Any one can trade using the website
of an ecommerce website by sitting at home. Businesses of many types use the internet to reach
their customers most effectively. Both (B2B) Business to Business transactions and (B2C)
Business –To-Customer transactions are carried out using the internet. Financial Institutions also
use the internet for various purposes for updated news, selling financial products to their clients
and to provide financial Services. The increasing use of Internet by people has convinced banks
to come up with the idea of Online Banking or Online Banking.
Online Banking:
Online Banking basically includes all types of banking activities performed through
electronic networks. In recent times Online Banking is used as a delivery channel of banking
services to both Business-to-Business (B2B) and Business-To-Customer (B2C) Transactions.
4.1 A Brief Idea about Online Banking

Online Banking activities includes the payments of bills and invoices, transfer of funds
from one account to another, application of a loan, payment of loan installments, sending funds
to third parties. These activities are carried out via emails and internet based activities. Online
Banking is an electronic connection between a particular bank and its customers. It can be used
to prepare, manage and control financial transactions. Online Banking is simply a pathway of
carrying out the transactions through the networks and not a banking product or a banking
service.
4.2 The History of Online Banking

The idea of Online Banking came with the rise of users of the internet and with the
development of the World Wide Web. The programmers have been working on data bases of
banking transactions long ago and an idea of Online Banking transactions had evolved at that
time in the early 1980’s. New technologies and the advancement of computer devices created an
opportunity to start a new trend of online shopping. Online Shopping or shopping from the
website using the internet promoted the use of credit cards. To facilitate online shopping date
ware housing or date storage facilities were used. During the development of the Automatic
Teller Machines or ATMs the development of the databases of banking transactions were also
used. In the 1980’s the financial organizations and banking institutions mainly in Europe and the
United States of America carried out researches and programming experiments on “Home
Banking” . At that point of time Home Banking was carried out using the telephones and fax
machines. This was done because the internet was not widely spread and many people were not
aware of such facilities. The wide spread of the internet and the advancement of programming
technologies created new opportunities for banks.
The first Online Banking service was introduced in the United Kingdom by the
Nottingham Building Society (NBS). The Online Banking Facility that was introduced is
believed to have been derived from a system which is known as “Prestel”. The Online Banking
facility introduced by the NBS was not very impressive and had drawbacks. The main drawback
was it restricted the number of transactions and functions that account holders could execute. In
the year 1994 the first Online Banking service was introduced in the United States. A financial
Institution named Stanford Federal Credit Union had developed this service of Online Banking.
There are many negative sides of Online Banking .These include a hacking , phishing ,
pharming, spoofing , sniffing and other unethical acts which makes Online Banking facilities
risky for both the users and the banks . Although Online Banking has negative sides but we
should also consider the positive sides. Online Banking has created a revolution and it has a
significant role to play in enhancing the banking sector.
4.3 Products and Services of Online Banking:

The products and services of Online Banking ranges from wholesale to retail products for
corporate and individual customers. The different types of products and services are designed to
satisfy different groups of customers.
Wholesale products and Services include:
Wire Transfer
Automated Clearinghouse
Transaction Bill Presentation and payment
Cash Management
Retail Products and Services Include:
 Fund Transfer
 Downloading Transaction Information Facility
 Investment
 Presentation of Bill and Payment
 Loan Application from the web
 Balance Inquiry
4.4 Types of Online Banking
Informational:
This is the most fundamental level of banking. This type of Online Banking does not
allow its customers to view or maintain their accounts. It also does not allow its customer and the
bank to communicate with each other. Rather it provides valuable information of its products and
services. This is used for marketing purposes only and can be provided either by the bank or it
can be outsourced to a third party. Appropriate controlling is required to prevent unauthorized
alterations to the bank’s server or website.
Communicative:
At this particular level the Online Banking allows interactions between the bank’s
systems and the customers to an extent. It is limited to basic interactions such as inquiry of
accounts, loan applications, or updates of certain files (such as contact information). The risk is
high at this level as the servers may have a path to the bank’s internal networks. To prevent any
unauthorized attempt to access to the bank’s internal internet appropriate controls are required.
Transactional:
This is the most popular type of Online Banking and allows all the benefits of traditional
manual banking. This can allow its users to fully control their accounts. This includes deposits,
payments, withdrawals, transfer of funds etc. However very strong controlling is required as the
risks associated with unethical practices are the highest at this level. Proper security measures are
required to make Online Banking facilities useful and convenient in the market place.
4.5 The Risk Management of Online Banking

With the rise of internet and new technologies new threats have arisen. New challenges
are created for the banks senior management. The different types of risk of Online Banking are
as follows:
Credit Risk:
Online Banking allows its users to apply for credit from anywhere around the world.
There is a risk to earnings or capital from a customer who has failed to meet his/her financial
obligations. It is difficult for banks to identify the identity of a customer. The bank will also find
difficult to verify the collateral against a particular loan. An individual can also represent
himself/herself as someone else and apply for a loan.
Interest Rate Risk:

One of the risks of Online Banking is the risk to earnings or capital arising from
movements in interest rates. Online Banking can attract a large pool of deposits and loans. The
internet can allow customers to compare interest rates of different banks from the websites. This
puts a pressure on the interest rates. Often the bank needs to react with the changes of interest
rates in the market place. The interest rates can change due to the changes in maturities of
different investments, due the changing rate among different yields. The differences between the
timing of rate changes and the timing of the different cash flows can also affect the interest risk.
Liquidity Risk:
Sometimes banks face a difficulty of failing to meet its obligations. Online Banking
increases asset and deposit volatility. Some customers simply maintain their deposit accounts
solely on the basis of favorable interest rates, and they often bring cash out and deposit in other
banks if a more favorable rate is offered. In order to avoid such circumstances proper asset
liability and loan management systems should be used.
Price Risk:
One of the risks to earnings or capital arising from changes in the value of traded
portfolios of financial instruments is price risk. This is a risk which arises from activities such as
dealing, position taking in interest rate, foreign exchange, equity and commodity markets. Banks
are vulnerable to price risks if they create or expand the current deposit brokering, loan sales or
securitization programs. All of these activities can create price risks for the banks if they carry
out Online Banking activities.
Foreign Exchange Risks:

This risk which arises when the assets of one currency are funded by liabilities in another
currency. Social, political and Economic development can intensify foreign exchange risks.
Customers of different countries can take speculative positions using the Online Banking. The
lower costs of transactions allow them to get involved in such activities. Sometimes banks have
higher holding transactions and investments in foreign currencies. This increases the foreign
exchange risks.
Transactions risk:
This risk to earnings and capital that arises from fraud, error, and the inability to deliver
services or products, or to maintain a competitive position or to manage information. Transaction
risk that may exist with Online Banking products if these are not properly planned not properly
implemented and not properly monitored. Banks which provide Online Banking should always
try to meet their customers’ expectations and satisfy them by ensuring them that they have the
right product mix and also have the capability to deliver accurate, timely and reliable services.
Compliance Risk:
The risks to earnings or capital that arises from the violations of , Non conformance with
the laws, rules, regulations , the prescribed practices an ethical standards of a country. This risk
can affect the reputation of a bank, business opportunities and positioning in the minds of its
customers. Banks should be careful in understanding and interpreting the laws of different
countries. Banks should also be careful in the privacy of customer and taking customer consent
wherever necessary.
Reputation Risk:
This risks that has a current and prospective impact on earnings and capital that arises
from a negative public opinion. Reputational risk can affect the bank’s ability to create new
relationships with potential customers and to retain existing ones. Banks which have Online
Banking facilities should be concerned about the reputation risk as it can create a financial loss
for the bank diminish its customer base etc. The services of Online Banking should not have a
limited availability, poor response rate etc. Proper monitoring of the websites are required so that
hyperlinks of the website do not like to implicit endorsements of other websites. These factors
should be put into considerations as customers are likely to switch to other companies if they find
flaws in the Online Banking facilities of a particular bank.
Strategic Risk:
This is risk of earnings or capital that arises from adequate business decisions and the
improper implementation of business decisions. Many bank managers and senior officers do not
understand how to implement the strategic and technical aspects of Online Banking. A proper
cost benefit analysis is required for this purpose. The organization should have the proper
structure, resources and expertise to carry out Online Banking.
Information Security Risk:

One of the major risks to earnings and capital is information security risk. This arises
when the security process is not strong enough. This can expose the institution to malicious
hacker or insider attacks, viruses and other attacks. Data theft, fraud are other unethical practices.
Chapter- 5
Online Banking in Bangladesh
Online Banking in Bangladesh
Online Banking
Online Banking is transforming the financial services industry through various impossible
innovations. The quantity of cross-border trading and other financial activities is increasing
geometrically make possible by technology. It has been made possible by technology,
particularly information technology to generate, collect and process information about bank
operation and bank customers efficiently and effectively. It provides the ability to create more
effective systems of controls in individual institutions and in the market themselves. Compared
to the paper-based operation, Electronic Banking Systems, in its most proficient form, offer
instant verification and transfer and reduces the flow of costly paper in the record keeping
process. Application of technology in banking offer opportunity for reduction of both paper and
people. Banks have developed EBS for three main reasons (Horseman, Michael J. 1979)
 To protect and increase market share

 To reduce operating cost by substituting physical capital and technology for labor
 To generate new revenue
Online Banking allow banks to expand their markets for traditional deposit taking and
credit extension activities, and to offer new products and services or strengthen their competitive
position in offering existing payment services. In addition, electronic banking could reduce
operating costs for banks. More broadly, the continued development of electronic banking and
electronic money may contribute to improving the efficiency of the banking and payment system
and to reducing the cost of retail transactions nationally and internationally. Although many
financial instrument and systems are now considered as “Electronic Banking” came into the
terminology of the financial world in the late 1980s, with the possibility of emergence of true
electronic money. All sorts of back-office information management technology and financial
services using electronic devices can be included into the term “Electronic Banking”. The
development in information technology has contributed positively to economic growth through
several channels. ICT has led to a productivity growth through the impact on activity processes.
Banks have been increasing the ir own size and financial strength and expanding the scope of
their products lines to meet the growing demand of online real-time financial services.
5.1 Structure of Online Banking

Online Banking is a general term referring to various computer-based technologies for
delivering banking services. Electronic banking systems can be divided into two categories by
the functional characteristics, viz. back-office electronic banking, and electronic financial
instruments or front-office electronic services. Back-office electronic banking provides
information management services, and quick fund transfer facilities both for traditional banking
and financial instruments and electronic financial instruments. Science inception of primary
forms of electronic banking it has been passed through a comprehensive evolution process.
Electronic banking services can be grouped into three generations of evolution:
5.2 Online Banking facilities given by different bank in Bangladesh
The following Electronic facilities are providing by different Foreign and Private
Commercial banks (PCBs) in Bangladesh:
Bank accounts: Savings, Current, FDR, PDS, Term Deposit Scheme
All these accounts are maintained in electronic way for the sake of customer satisfaction
in Bangladesh. People can deposit their money through electronic device and also can withdraw
their money such way. These are the common bank accounts which maintained by the bank
customer every now and then and bank is also given high priority or facilities in this regard to
their customer.
Special Services
Some Banks render special services to the customers attracting other banks.
Debit Point-of-Sale An advanced payment system which enables consumers to use an ATM Card
to pay for goods and services, electronically debiting the cardholders account and crediting the
account of the merchant.
Cards: Credit/Debit Card

There are two different types of card. One is debit which designate to withdraw own
moneym from the bank in any time. Another one is a credit system which provided by bank to
their customer. Customer can enjoy their credit amount while they are in shopping, withdraw
cash etc.
5.3 Online Banking
Customers need an Internet access service to handle this type of banking. As an Online
Banking customer, he/she will be given a specific user ID and a confidential/secret or secured
password so that they can access to their own account. Here customer can able to see the ledger
balances, transfer his money, request something towards bank, etc.
Home Banking
Home banking frees customers of visiting branches and most transactions will be
automated to enable them to check their account activities transfer fund and to open L/C sitting
in their own desk with the he lp of a PC and a telephone. For example: HSBC is giving Hexagon
facilities to their individual and corporate customer.
Automated Teller Machine (ATM)

Full abbreviation of ATM is “Automated Teller Machine” which acts like a teller point in
a bank who takes and gives money over the counter. ATM is same as teller point but it run
automatically through identity like card and password. It does not need any slip or Cheque but it
is very much based on A/C holder’s ATM card and it’s Password. Those who are entitled for
ATM card, bank has provided them a password against every single card. This is like a debit
card. People can deposit their money in a bank account and they have entitled withdraw their
money through ATM card, which is applicable for 24 hours a day and 365 days in a year. It has
different name such as ATM, 24 hours banking card, money link card, e-cash, ready cash etc. In
Bangladesh, some multinationals incepted the ATM booth in Dhaka since 1992-
93. The Grind lays Bank was the pioneer in Bangladesh then after Standard Chartered Bank,
American express Bank, HSBC, Bank Asia and seven others local private banks are the
followers.
Tele Banking
Tele-Banking permit customers to get access into their respective banking information 24
hours a day. Subscribers can update themselves by making a phone call. They can transfer any
amount of deposit to other accounts irrespective of location either from home or office.
SWIFT
SWIFT is a bank owned non-profit co-operative based in Belgium servicing the financial
community worldwide. It ensures secure messaging having a global reach of 6,495 Banks and
Financial Institutions in 178 countries, 24 hours a day. SWIFT global network carries an average
4 million messages daily and estimated average value of payment messages is USD 2 trillion.
SWIFT is a highly secured messaging network enables Banks to send and receive Fund Transfer,
L/C related and other free format messages to and from any banks active in the network. Having
SWIFT facility, Bank will be able to serve its customers more profitable by providing L/C,
Payment and other messages efficiently and with utmost security. Especially it will be of great
help for our clients dealing with Imports, Exports and Remittances etc.
Easy Pay Machine

It is a mechanical device which can accepted utilities bill like land phone bills, cell phone
bills, Gas bills, WASA-DESA bills etc. The day after tomorrow bank will report to the particular
authority to give acknowledgement on behalf of their customer.
Others
There are some other electronic services like TV Banking, Mobile Banking; SMS
Banking through cellular phone, Mail Banking etc is practicing ignorable way. But banks are
trying hard to develop new products which can be done through electronic device like internet,
telephone including cellular and mechanical devices.
5.4 The common features of electronic banking in Bangladesh are as follows: -

Electronic banking idea developed in Bangladesh since 1992 through several
multinational banks. But most of the local and foreign banks are maintained electronic banking
in their all branches. Here the researcher fined some common features of electronic banking in
Bangladesh.
1. 24- hours cash deposit & withdrawal facility

2. Quick cash withdrawal without having queue
3. Account activities enquiry in any moment
4. Statement request through ATM/Debit/Credit Card
5. Transfer own funds to other account number in same bank
6. Present Balance enquiry
7. More than16- hours shopping facilities
8. Deposit or Mail cash or cheque(s) (Cross cheque) through mechanical device.
9. Changing Personal Identity Number
10. Cash deposit which will originally deposit very next day of deposit that means do not
need to go to the branch for every occasion.
11. Mini statement which contain 8-10 previous transaction records Can able to pay utilities
bill
12. Withdraw money by using VISA, PLUS, MASTER, MAESTRO and other credit card
13. Withdraw money from dollar account which gives taka by converting foreign Currency.
Chapter- 6
Online Banking Service of ABL
Online Banking service of Agrani Banl Ltd.
6.1 General Onlin banking services:
Branch Computerization:
1175 branches are on live operation. Out of 1202 branches at home, 1181 branches have
already been entered in the automation network.
Foreign Remittance:
Bank's own in-house software "Remittance Management System" (RMS+), having,
among others, the feature of paying foreign remittance instantly over the counter is being
implemented at all branches. This web based software provides digital services to the expatriates
through its unique advantage of sending confirmation message to the mobile phone of the
remitter/beneficiary.
ATM
Agrani Bank Limited is a member of Q-Cash ATM network. At present the bank has 53
ATM booths. Agrani Bank's ATM cardholders enjoy the access to the ATMs and POS of Dutch
Bangla Bank Ltd. and Brac Bank Ltd. besides those of Q-Cash consortium. Agrani Bank recently
launched Credit Card.
Online and SMS Banking:

At present 109 branches of Agrani Banks are included in the Online Any Branch Banking
(ABB) network. SMS Banking service is runnig in 73 branches. The bank is seriously working
on connecting all branches in the Real-time Online Banking network gradually. Branches having
ABB facility are also rendering SMS banking services.
6.2 Features of SBL Q-Cash ATM Network:
 Agrani Bank Limited has introduced Proprietary Debit & Credit cards.
 Card holder can easily pay utility bills like- Water, Telephone, Gas etc.
 It is easy to remit funds among the participating branches of the Bank.
 24 hours Transactions is available.
 It is a risk less Cash carrying facility.
 Cashless purchase can be made from specific Point of Sales (POS). Only designed Branches of
Bangladesh deal Q-Cash cards.
 Branches of District and Upazilla level will introduce Agrani Bank Q-Cash card within shortest
possible time.
6.3 Debit/Credit Card services:
Agrani Debit Card Facilities:

Agrani Bank Limited is one of the member bank of Q-Cash Consortium. Card holder of Agrani
Bank Limited can use ATMs of consortium member banks, Dutch-Bangla bank and BRAC bank
limited. Member Banks of Q-Cash Consortium:
 Agrani Bank Limited

 Basic Bank Limited
 IFIC Bank Limited
 Janata Bank Limited
 National Bank Limited
 Pubali Bank Limited
 Trust Bank Limited
 ICB Islamic Bank Limited
 Social Islamic Bank Limited
 Bangladesh Commerce Bank Limited
 State Bank of India
 Eastern Bank Limited
 Jamuna Bank Limited
 Markentile Bank Limited
 NCC Bank Limited
 Shahjalal Islamic Bank Limited
 The City Bank Limited
 Standard Bank Limited
 Uttara Bank Limited
 Bank Asia Limited
 Mutual Trust Bank Limited
Debit and Credit card holder of Agrani Bank Limited can use under mentioned ATM Booth
and shopping centre and Point of Sale (POS):
Other Bank Transaction Charges per Transaction including VAT:

22 Q-Cash Member Banks = Tk 11.50
Omnibus Network (Brac Bank) = Tk 17.25
Dutch Bangla Bank = Tk 34.50
Other Information
Yearly charge for Debit Card is Tk 345.00 (Including VAT)
Duplicate Card issue is case of lost = Tk 200.00
Agrani Credit Card Facilities:

Agrani Bank Limited has introduced proprietary credit card. At present officers of the
bank are entitled to enjoy credit card facility. Other than this, officer of Government, Semi-
Government, Autonomous organizations, Teachers and Officers of the Government Universities
are also entitled for Agrani Credit card whose salary is disbursed from issuing branches of
Agrani Bank Limited.
Chapter- 7
Analysis and Findings
Analysis & Findings
Findings are based on the following questions: these are categorized as
A. Services used by customer

1. Why do you use Online Banking?
2. Which Online Banking service is most user friendly to you?
3. How often you use Online Banking per week?
B. Development needed for future

1. Mobile application should be developed to provide online banking
2. Each online branch should keep computers in branch office for those who do not use
android mobile
3. Online Banking customer care service should be initiated for instant help
C. Factors of consideration
I. Better rates & low service charges
II. Security of transaction
III. Quick service (transaction completed in seconds instead of minutes)
IV. Variety of features
V. Convenience
VI. User friendliness
D. Level of satisfaction
1. Online Banking services are satisfactory to you?
By analyzing the above questions I find the following things:
Category A
45% respondents said they use Online Banking services for regular transaction. 25% said
they use service for the purpose of deposit and rest 30% use e banking services for the purpose
of withdrawal.
People use of Online Banking

50% 45%
40%
30% 25% 24%

20% People use of E-Banking
10%
2% 2%
0%
Regular Deposit Bill & Tax Withdrawal E-Tender
Transaction
Figure: 1

65% respondents’ marked ATM service is the most users friendly to them. 25% thinks
online banking is the most used friendly and 10% filled SME banking.
Use of Online Banking

70% 65%
60%
50%
40%
30% 25% Use of E-Banking
20%
8%
10% 2%
0%
ATM Online Banking SME Banking Others
Figure: 02

40% use Online Banking services 1 -3 times per week. 25% respondents use 4-6 times a
week. 25% use every day and rest 10% use 7-9 times per week.
Number of use Online Banking

50%
40%
40%
30% 25% 25%
20% Number of use E-Banking
10%
10%
0%
1-3 time per 4-6 time per Everday 7-9 time per
week week week
Figure: 03
Category B
1. Mobile application should be developed to provide online banking

60% respondents want bank should develop smartphone mobile application and there
25% of employee was agree, neutral 8%, Slightly Agree 5%, Disagree 2%, about this question so
here prove that mobile banking service is essential to achieved organization goal.
Mobile Banking Service

2%
5%
8%
Strongly agree
Agree
Neutral
25% Slightly Disagree
60%
Strongly Disagree
Figure: 04
2. Each online branch should keep computers in branch office for those who do not use
android mobile
60% respondents want bank should develop separate computer for online transaction and
there 25% of employee was agree, neutral 8%, Slightly Agree 5% , Disagree 2%, about this
question so here prove that mobile banking service is essential to achieved organization goal.
Separate Computer
70%
60%
50%
40%
30%
Separate Computer
20%
10%
0%
Strongly Agree Neutral slightly Strongly
agree Disagree Disgree
Figuere: 05
3. Online Banking customer care service should be initiated for instant help
80% user thinks that bank should open a 24 hours instant customer care support facility
especially for e banking user, Agree 15%, Neutral 1%, Slightly Disagree 1% and 1% Strongly
Disagree.
24 hour customer care service

1% 1%
2%
15%
Strongly Agree
Agree
Neutral
Slightly Disagree
Strongly Disgree
80%
Figure: 06
Category C
I. Better rates & low service charges

90% wants better rates and low service charges for using e banking services. 10% respondents
find no problem with existing rates and charges.
II. Security of transaction
There is no doubt that all the respondents marked that they want perfect security.
III. Quick service (transaction completed in seconds instead of minutes)
90% respondents want to get services very quickly.
IV.Variety of features
80% people want variety of features.
V. Convenience
65% wants convenience of services. 30% respondent s are neutral at this question.
VI.User friendliness
85% people want user friendly services.
Figure: 07
Category D
1. Online Banking services are satisfactory to you?
40% people are satisfied with existing Online Banking services strongly agree. 35%
respondents are agree at this question. But the rest 35% are dissatisfied with the services
provided by Agrani Bank Housing State Branch.
Satisfaction of Online Banking

45%
40% 40%
35% 35%
30%
25%
20% Satisfaction of E-Banking
15%
10% 10% 10%
5% 5%
0%
Strongly Agree Neutral Slightly Disagree
Agree Disagree
Figure: 08
Findings
Agrani Bank Limited faces few problems with ATM:

1. Transaction Limit
2. Booths are Not Available in all places
3. Booths are in open place
4. Not available to restaurants and shopping center
5. ATM booths are not always UP
6. No Bangla Interface for mass people
7. No voice commanding option for blind people.
8. ATM’s fall short of money.
Problems relating to Branch Computerization:

1. Server fails for long time
2. New software named CBS (core Banking Software) is now running for few months. So if
someone needs the statement or any data related to transaction more than 4 moths then the
previous software named Baxi bank is needed.
3. Electronic token system is not in used.
4. Computers are not up to date.
Problems relating to SMS and Online Banking:

1. SMS banking is not or rarely used.
2. SMS service is not available
3. Online Banking may have the risk of password fraudulent.
4. Online security is not as much powerful as the size of bank
Problems relating to Q cash network:

1. This service is not available
2. Only designed braches deal with Q cash cards.
3. Most of Customers of SBL don’t know about this service because of poor publicity.
Conclusion and Suggestion
To overcome the problem I would like to suggest the following things:
 Bank should establish more ATM booths

 ATM booths should have enough money
 Bangla interface should be introduced as soon as possible.
 Branch office should not be connected with local broadband service. In this case I suggest
that the branches should use BTCL internet service.
 SMS banking needs more development. Revival of this service is the demand of time.
 Head office should think about to develop smartphone mobile application for providing
better services. Online Banking services should try to mobilize more deposit schemes
through better marketing and innovative measures.
 Online Banking system should be more flexible.
 All the statement relating to transaction should provide in the CBS software.  E
banking should develop their communication among branches.
 Online Banking service should be according to the customer expectation and satisfaction.
Online Banking service should be resolve the entire problems very quickly that the
customer face in online transaction. Marketing and sales force should be developed to
attract customer.
Conclusion
The study clearly indicates that those who use Online Banking features of Agrani Bank are
not very satisfied with the service. If the bank plans to expand the customer base of Online
Banking they should focus more on speed, user friendliness, and safety and convenience,
quick response factors of Ebanking. Proper web-hosting is required for this reason.
Customers should also be made aware of unethical practices like sniffing, spoofing, phishing,
pharming and other malicious software which can be used by hackers. Attention should also
be given in the encryption of the information which is exchanged between the users and the
bank. So the study is very beneficial for both Agrani bank and
Bangladesh to get insights about Online Banking relations with customer satisfaction.
Reference
Books
Dr. Khan A.R.(2012) ―Bank Management‖, 2nd edition, Publication place: Dhaka , Ruby
Publication,
Dr. Snehalkumar H Mistry( July 2013) , Measuring Customer Satisfaction in Banking Sector,
Asia Pacific Journal of Marketing & Management Review, Vol.2(7), page No. 20-22
McQuitty, F. W., 2000. Systematically Varying Customer Satisfaction and its implications for
product choice, NY: Academy of Marketing Science Review.
Mishkin, F., 2001. The Economics of Money, Banking and Financial Markets. 6th ed. MA:
Addison- Wesley.
Moody, 2004. Traditional banks gain edge with electronic banking.
Articles
Al-Amin, S., & Rahman, S. (2010). Application of Electronic Banking in Bangladesh: An

Overview. Bangladesh Research Publications Journal, 4(2), 172-184.
Alexandris, K., Dimitriadis, N. and Markata, D., 2002, “Can perceptions of service quality
predict behavioral intentions; An exploratory study in the hotel sector in Greece”, Journal of
Managing Service Quality, Volume 12, Issue 4, Page 224 – 231.
Annual Reports of Sonali Bank Limited 2018, 2017 and 20116
Dr. Snehalkumar H Mistry (Measuring Customer Satisfaction in Banking Sector), AsiaPacific

Journal of Marketing & Management Review, ISSN 2319-2836 Vol.2 (7), July (2013)
Kazi Omar Siddiqi (The Drivers of Customer Loyalty to Retail Banks: An Empirical Studyin
Bangladesh, Industrial Engineering Letters, ISSN 2224-6096 (print) ISSN 2225-0581 (online)
Vol 1, No.1, 2011),
Khondaker, M.Saifuddin. & Mir, M. Zaman. - [Customer satisfaction measurement for the
stateowned banks in the developing countries: The case of Bangladesh.] Journal of Business
and Policy Research, 6 (2), 153-172, 2011
Md. Masukujjaman & Afia Akhter (Quality of Categorized Service and Customer Satisfaction
in Banking Industry: An Empirical Study on Private Commercial Banks in Bangladesh),
Journal of Business and Technology, Volume– V, Issue– 02, July December, 2010
Ongkasuwan M, T. W., 2002. A Comparative Study of Internet Banking in Thailand..

Puja Khatri &Yukti Ahuja (2008) , Study of customer satisfaction in public sector and private
sector banks of India, International Journal of Engineering and Management Sciences
(I.J.E.M.S.), VOL. 1(1):, pp. 42-51.
Sagib, G.K. &Zapan, B. (Bangladeshi mobile banking service quality and customer satisfaction
and loyalty‖, Management & Marketing) Challenges to the Knowledge Society, Vol. 9, No. 3,
pp. 331‐346, (2014),
Shamsuddoha, M., n.d. Electronic Banking in Bangladesh, Chittagong: University of

Chittagong.
Alexandris, K., Dimitriadis, N. and Markata, D., 2002, “Can perceptions of service quality
predict behavioral intentions; An exploratory study in the hotel sector in Greece”, Journal of
Managing Service Quality, Volume 12, Issue 4, Page 224 – 231.
Annual Reports of Sonali Bank Limited 2018, 2017 and 20116
Annual Report
Annual Report on Agrani Bank Limited 2019.
Websites
https://www.agranibank.org/
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1021484
http://www.ecommerce.or.th/nceb2002/paper/55-A_Comparative_Study.pdf
Appendix
Questioner
“Impact of online banking on Customer Satisfaction- A Study on Housing State Branch,

Agrani bank”
Dear, I, student of Department of Management Studies, Comilla University, am determined to

perform my internship under Agrani Bank Limited, Housing State Branch, Comilla. You know
online banking system has added a new dimension in banking industry. This is a new window of
opportunity for banking sector. As an internship student, I am going to run a survey to prepare an
internship report on “Impact of online banking on Customer Satisfaction- A Study on
Housing State Branch, Agrani bank”.
This is my commitment that, this information only will be used for this report purpose
and all the information will remain confidential.
 (Put mark)
A. Services used by customer

a) Regular Transaction b) Deposit c) Bill & Tax d) E-Tender

a) ATM b) Online Banking c) SME Banking d) Others

a) 1-3 Times b) 4-6 times c) Everyday d) 7-9 Times
B. Development needed for future
SN Feutures Strongl Agre Neutra Disagree Strongly

y e l Disagree
Agree
1 Mobile application should be
developed to provide online
banking
2 Each online branch should keep
computers in branch office for
those who do not use android
mobile
3 Online Banking customer care

service should be initiated for
instant help
C. Factors of consideration
SN Factors Importan Neutra Not

t l Important
I Better rates & low service charges
II Security of transaction
III Quick service (transaction completed in
seconds instead of minutes)
IV Variety of features
V Convenience
VI User friendliness
D. Level of satisfaction
SN Question Strongly Agre Neutra Disagre Strongly

Agree e l e Disagree
1 Online Banking services are
satisfactory to you?
Thank You

E-Banking (Agrani Bank)

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AN INTERNSHIP REPORT

Md. Sahedur Rahman

Reg. No. & Exam Roll: 11605057

BBA (10th Batch)

Department of Management Studies

February 08, 2021

Subject: Submission of an Internship Report.

DepartmentofManagementStudies,ComillaUniversity Page iii

I wish her every success in life.

Md. Sahedur Rahman

 SAFA South Asian Federation of Accountants

 SME/BUB Small and Medium Enterprise

Sl. No. Topics Page No.

DepartmentofManagementStudies,ComillaUniversity Page vii

5.1 Structure of Online banking 18

Chapter-6 Online Banking Service of Agrani Bank

Chapter-7 Analysis & Findings 25-31

Chapter-8 Conclusion & Suggestion 32

DepartmentofManagementStudies,ComillaUniversity Page viii

Introduction of Online Banking

Customer satisfaction is positively related to Online Banking. It is believed that

1.1 Background of the study:

1.2 Purpose of the Study:

1.3 Methodology of the Study:

1.4 Limitations of the study:

2. Less time to complete report

5. Results are calculated manually

Arunachalam and Sivasubramanian (2007) content that Internet banking is where

E-service quality can be explained as an overall customer evaluation about e-service

Customer Satisfaction has become an important aspect of measuring performance. Particularly

Dr. Snehalkumar H Mistry (Measuring Customer Satisfaction in Banking Sector), AsiaPacific

Overview of Agrani Bank Limited

3.1 History of Agrani Bank Limited

Agrani Bank Limited is governed by a Board of Directors consisting of 10 members

Agrani Bank Limited (ABL) is the first state-owned Commercial Bank in

3.2 Vision & Mission Vision:

Socially committed leading banking institution with global presence.

3.3 Corporate Profile

Name of the Company Agrani Bank Limited.

3.4 Some notable feature of Bank

3.5 Hierarchy of Agrani Bank Limited

3.6 Services of Agrani Bank Limited:

 Record all transactions in the cash book.

 Pay all expenditures on behalf of the branch.

 Pension of employees of Government and other corporate bodies

Sale & Encashment/Purchase:

 Wage Earner’s Development Bonds

 US Dollar Premium & Investment Bond

 Lottery tickets of different Semi-Govt. and Autonomous Bodies Sanchaypatra

 Public Service Commission’s application form

 Judicial Service Commission’s application form

 Exchange of soiled/torn notes

 Bank a/c information of tax payee client according to demand of NBR

 Local Governance Support Project

 Enlist of Non Government Insurance Company

3.7 Products of Agrani Bank Ltd

3.8 Duties Performed in the General Banking:

An Overview Of Online Banking

4.1 A Brief Idea about Online Banking

4.2 The History of Online Banking

4.3 Products and Services of Online Banking:

Wholesale products and Services include:

Retail Products and Services Include: