Department of Banking and Insurance

Faculty of business studies

University of Dhaka

E-banking and its performance of state owned commercial banks in BD –a case on SBL
Supervised by
Md.Asif Nawaz
Assistant professor
Department of banking and insurance
University of Dhaka
Prepared By
Maisha monwar mahi
ID-20-117
Department of banking and insurance
University of Dhaka
 1

Table of Contents

Particulars Page number

Chapter 01 3
Introduction 4
1.1 Background of the study 4
1.2 Objective of the study 4
1.3 Methodology of the study 4-5
1.4 Limitations of the study 5
Chapter 02 : An overview of Sonali Bank Limited 6
Overview 7
2.1 Mission 7
2.2 Vision 7
2.3 Slogan 7
2.4 Corporate profile 7-8
2.5 Some notable features of bank 8
2.6 Branches and subsidiaries 8-9
2.7 Services of sonali bank ltd 9
2.7.1 Principal activity of the bank 9
2.7.2 Subsidiary 9
2.7.3 Associates 9
2.7.4 Account section 10
2.7.5 Ancillary service 10
2.7.6 Social service 10
2.8 Other activities 10
2.8.1 Memorandum of understanding ( MOU) 10-11
2.8.2 Risk management 11
2.9 Products of Sonali bank limited 11
 2

Chapter 3 12
3.1 E-banking 13

3.2Ccategorization of e-banking service 13

3.3 Benefits from bank’s point of view 13-14
3.4 Benefits from customers point of view 14

3.5 List of E-banking services of Sonali bank limited 14-15

3.6 Software 15
3.7 SWOT analysis on E-banking 16
Chapter 4 17

4.1 Analysis on customer perception and satisfaction regarding 18-40

E-banking of Sonali bank limited
4.2 E-banking tools of state owned commercial banks 41-42
4.3 Fish –bone analysis on state owned commercial banks 43-44

Chapter 5 45

Findings 46
Chapter 6 47
Recommendations 48

Conclusions 49
 3

Chapter 01 :
Introduction
 4

In the present world money is flowing all over the world. Extension, high –tech advances
and other aspects money is distributing un-amenably . As a serviceability business, the
banks are customer directed .Customers are the driven power of a bank and it gain profit
by serving benefits to customers.
Financial institutions more specifically banks play a vital part in pairing a depositor and
lenders and passing money and assembling the economy more effectually. Though the
antiquity of banking pushes back to the 14th century in Europe but banks are now all around.
Banks in Bangladesh perform a symbolic part competing with other financial institutions.
The controversy in the banking business has been escalated more than even before.
International fiscal dilemma, share market clash, deflations, and other elements influenced
the banking business. So banks should fix themselves at a separate corner in the perceptions
of the customers by passing alluring offers such as higher interest rates or by passing
noteworthy service to the customers. Services include financial suggestions, flexible rates and
dates of settlement, portfolio management etc.
E-banking is serviceability offered to the customers which comprises opening the balances on
accounts, reviewing the transactions, downloading useful information, transmission of funds,
reimbursement of third parties, composing loan application etc from a protected network of
bank. E-banking has revealed up a recent ground of controversy for banks.E- banking has
been sourced in the 1980s but it is comparatively recent approach in Bangladesh.
Banking appears with immense favors. Many customers intensely adapted to the use of e-
banking. Sonali Bank Limited is promoting to launch new e-banking services one by one. But some
still choose traditional banking. They find traditional banking smooth, hassle free, more authentic
than e-banking.

1.1 Background of the study:

This internship report has originated as a partial fulfillment of the BBA program. This report is
mandatory requirement of completion of BBA.I am working at Sonali bank VNS branch for 90
days and the experience of working at Sonali bank has helped me to match my theoretical
knowledge with practical understanding. As an intern of Sonali bank I was provided with the
topic ‘Electronic banking and its performance of state owned commercial banks in Bangladesh
– A case of SBL‘.

1.2 Objective of the study:

 To classify, to find out the facilities and features of E-banking system in Sonali Bank
Limited
 To determine the level of customer satisfactions with the available e- banking
facilities.
 To figure out the customer perception on E-banking
 To find out the problems and give some necessary suggestions.
 5

1.3 Methodology of the study:

Data collection:
Primary data was collected from face to face interviews with the employees of Sonali Bank
Limited .The other data was collected from the user of E-banking services of Sonali Bank Limited
VNS branch by conducting a survey on their requirements.
Secondary data was collected from various website, some publications, and previous work on
Sonali bank.

Sample size:
Sample size is 50.The samples are collected by using questionnaires.

Data Analysis:
Data was analyzed by using percentage.

1.4 Limitation of the Study :

 A bank has some restrictions to present all the real data of bank to general
people, so all relevant data and document collection is difficult.
 It was very hard to collect the information. As customers are very busy, they are
not interested in giving genuine information.
 Some of the customers are afraid to give answer / information.
 Data are not structurally distributed in the organization, for that reason I have to
depend on the secondary data like annual report.
 The entire system is relatively new in Bangladesh. So sufficient data was not
found in this topic.
 Results are calculated manually.
 6

Chapter 02 : An overview
of Sonali bank limited
 7

Directly later separation of the country Sonali Bank developed as the vastest and advancing
Nationalized commercial bank by publication of the bank’s nationalization order 1972
( presidential order – 26 ) solventing then National Bank of Pakistan , Premier Bank and Bank of
Bahawalpur . As an entirely state owned institute, the bank had been releasing its nation-
building obligations by launching government delegated contrary socio-economic proposals
along with money market exercises of its own preference, disguising all circles of the economy.
The bank has been disciples to a public limited company with 100% ownership of the
government and outset exercising as Sonali Bank Limited from November 15, 2007 holding over
all assets, liabilities and business of Sonali Bank. After combination, the administration of the
bank has been given desired sovereignty to prepare the bank combative & to scuttle its
business persuasively. Sonali Bank Limited is ruled by a board of directors consists of 11
(eleven) members. The bank is led by the CEO & the Managing Director, who is a well-known
banker, a prestige professional. The associated headquarter of the bank is placed at motijheel,
Dhaka Bangladesh, the principal mercantile Centre of the capital.
2.1 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.
2.2 Vision
Socially committed leading banking institution with global presence.
2.3 Slogan
Your trusted partner in innovative banking.
2.4 Corporate Profile

Name of the company Sonali Bank Limited

Chairman Mr. Md. Ashraful Moqbul

CEO & Managing Director Mr. Md. Obayed Ullah Al Masud

Company Secretary Mr Md. Ataur Rahman

Legal Status Public Limited Company

Genesis Emerged as Nationalized Commercial Bank in

 8

1972, following the Bangladesh Bank

(Nationalization) Order No. 1972 (PO No.26 of
1972)
Date of Incorporation 03 June, 2007

Date of Vendor's Agreement 15 November, 2007

Registered Office 35-42, 44 Motijheel Commercial Area, Dhaka,

Bangladesh
Authorized Capital Taka 6000.00 Crore

Paid-up Capital Taka 3830.00 Crore

Number of Employee 18,806

Number of Branches 1211

Phone-PABX 9550426-31, 33, 34, 9552924

FAX 88-02-9561410, 9552007

SWIFT BSONBDDH

Website www.sonalibank.com.bd

E-mail itd@sonalibank.com.bd

2.5 Some Notable Features of the bank

Capital structure

Authorized capital 6000 crore

Paid up capital 3830 crore

2.6 Branches and subsidiaries

1. Total number of branches 1211

a) No. of foreign branches 2
b) No of local branches 1209
I. No of rural branches 743
II. No of urban branches 466
 9

No of regional offices 16

No of principal offices 46

No of G.M offices 11

Subsidiaries 1. Sonali Exchange Company

Incorporated (SECI) having 10 (Ten)
branches in USA.
2. Sonali Investment Limited
(Merchant Banking) having 4 (Four)
branches at Motijheel, Paltan,
Uttara, Mirpur in Dhaka and 1 (One)
branch in Khulna, Bangladesh.
Representative Offices :3 : 1(One) in Jeddah, KSA; 1 (One) in
Riyadh, KSA and 1 (One) in Kuwait.
Correspondence 639

2.7 Services of Sonali Bank Limited:

2.7.1 Principal activity of the bank:
The principal activities of the bank are

 To simplify and hold all kinds of commercial banking services to its customers
empowered by Bangladesh bank.
 To execute government treasury functions and also act as assistant of Bangladesh bank.
 To export and import trade of Bangladesh with other countries under various
agreements.
 International Banking.
2.7.2 Subsidiary:
A subsidiary company named Sonali exchange co. Inc. was incorporated on 4 april,1994 under
the law of state New York , department of State ,licensed on 17 th October ,1994 by the state of
New York banking department and commenced operation as an international money remitter
from 12th December ,1994.
2.7.3 Associate:
On 4 November ,1998 sonali bank notified the financial service authority of the UK of its
intention to voluntary surrender the banking license for sonali bank UK branch with effect from
 10

June 30,1990.Sonali 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. But a representative was there
till 7 December ,2001.A subsidiary money remitting company under the name Sonali trade and
finance ( UK) Limited has been incorporated under the UK company act 1985.The company has
been allowed to start its function as a bank from 7 December ,2001 ( the operation activities
started on 10 december,2001) by the financial service authority of UK changing its name as
Sonali Bank ( U.K) Limited .51% share capital newly renamed company is held by the people’s
republic of Bangladesh and remaining 49% by sonali bank.
2.7.4 Account Section:
This is very much vital category for any business matter. Here maintains recording of all
executions of all departments. Account section verifies all commercial accounts and all content
of negotiations. Each running day full amounts are balanced and coordinated to extract and
disparity. The overall exercises of account section are as follows –
 Archive all deals in the cash book.
 Archive all deals in primary and subsidiary ledger.
 Develop regularly supply function, weekly ground, periodic assurance of incidents etc.
 Develop basic statements for reporting direction.
 Forming salary statements and payment of salary.
 Reimbursement of total costs on favor of the branch.
 Branch to branch supply remittance and flotation for account treatment.
 Allocation for branch.
 Compose charges for distinct nature of duties.
2.7.5 Ancillary services:
Sonali bank passes numerous exclusive serviceability with its nexus of branches throughout the
country in addition to natural banking affairs.
2.7.6 Social services:
 Old age allowances
 Widows, destitute and divorces women allowances
 Freedom fighters allowances
 Disability allowances
 Rehabilitation for acid survival women.
2.8 Other activities:
2.8.1 Memorandum of Understanding (MOU):
A memorandum of understanding has been marked by the bank with Bangladesh bank on
30.06.2004. The memorandum illustrates some distinct actions to be discharged regarding
supervising and
 11

Surveillance of loans and advances including readjustment of classified loans.

2.8.2 Risk Management:
Alike any other business, risk are also inborn in banking business. Though noteworthy
development has been composed in the ground of risk management in global fields, no
constructural policy / development in this matter has yet shaped in the banking region. In this
context, Bangladesh Bank has established 5 (five) essence fields disclosing to banking services
and pointed accessory guidance in 5 fields –
I. Credit risks
II. Asset liability / balance sheet risks
III. Foreign exchange risks
IV. Money laundering risks
V. Internal control and compliance risks
2.9 Products of Sonali Bank limited:
 Export credit ( pre-shipment & post shipment )
 Facilitating suppliers credit
 Lc’s ( letter of credit)
 Guarantee in foreign currency
- Bid bond
- Performance guarantee
- Advance payment guarantee
 Bill purchasing / discounting
 Remittance , collection, purchases and sales of foreign currency & travelers cheque
 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
 12

Chapter 03 : E-Banking of
Sonali bank limited
 13

3.1 E-banking
E-banking is a technique by which customer may operate banking negotiations electronically
without visitation of brick and motion institution. E-banking does not require any physical
transfer of money, but it’s maintained electrically from one account to another through
internet. E-banking helps to access bank account of customers for information, performing
many banking activities like loan payment, transfer of money, viewing account details etc.
When customers register themselves in web they can avail facilities like- credit card & home
loan balances, transaction details of each accounts, pay bills, moving funds to third party which
customers nominate etc. Till now E-banking service provided by sonali bank grants activity such
as solution towards e-mail queries, assessment patterns etc.
3.2 Categorization of E-banking services:

Generation of E- banking Back office Front office

First Generation Ledger Cash dispensers

Cash management

Second Generation Transaction processing Telephone bill payment

Generation of information ATMs
for record keeping Check verification
Fund transfer Authorization

Third Generation On line transaction processing Automatic fund transfers

Centralized processing at On-line banking
country level Check transaction
Interbank transaction Electronic fund transfer
processing Local box check transaction
Internet banking

3.3 E-banking benefits from bank’s point of view:

E-banking benefit from banks point of view is to avail better response and to attract new and
existing customers. The other benefits are – to represent the bank as a better branding. The
 14

main goal is to maximize profits. So like other institutions bank want to do this. Automated
banking service generate the perfect situation to maximize profits.
3.4 E-banking benefits from customers point of view:
The main benediction from the customer’s point of view is it saves worthy time by the
automatic way of processing and easy activity tools for customer’s money. Other benefits are it
help to increase comfort level, time saving transaction into 24 th a day without interacting
physical connection with the bank. By one click away customers can view multiple accounts.
There are other benefits.
Reduced cost:
It reduces the convenience and the cost of availing use of various products. All the banking
activities can be performed the place where a customer wants to.
Speed:
Earlier customers have to wait till last minute to conclude a fund transfer but E- banking
created medium of fast service.
Avoidance of long queue:
Customers do not need to stand long queue to perform their activities, they can do it sitting at
any place anywhere.
Funds management:
Customers can download their account history and can determine proper fund management of
account.
3.5 List of E-banking services of Sonali Bank Limited:
3.5.1 General E-banking services
Branch Computerization:
1210 inland branches are performing in automated service.
Foreign Remittance:
Bank’s endemic software ‘remittance management system’ is providing its service all over the
branches. Its uncommon benefit is it sends authentication notice to the mobile phone of the
remitter.
 15

ATM:
Sonali bank is a representative of Q-cash ATM network. Currently Bank has 53 ATM Booths.
Around 6500+ contributed ATM booths across the country. Sonali bank’s ATM cardholders
relishes the connection to the ATMs and POS of Dutch Bangla bank limited and Brac bank
limited aside those of Q-cash consortium.
Online and SMS banking:
Currently 1210 branches are operating as online any branch (ABB) network. SMS banking
service is providing in 1210 + branches. Branches operating ABB service also rendering SMS
banking facility. RTGS set up branch no is 70.
Q-cash ATM network
Features of SBL Q-cash network:

 Sonali bank limited has brought out properties ,debit and credit cards
 Card holders can spontaneously give utility bills like water, telephone, gas etc.
 It is simple to remit cashes within the partaking sections of the bank.
 24 hours transaction is available.
 It is danger less cash bearing facility.
 Cashless bargain can be composed from specific point of sales (POS).
Sonali Debit card facilities:
Sonali bank is one of the part of Q-cash consortium. Card holders of sonali bank can exercise
ATM’s of consortium member banks, Dutch Bangla bank and Brac bank limited.
Sonali Credit card facilities:
Sonali bank limited has brought on proprietary credit card. Currently, officers of the bank
labeled to pleasure credit card facility. Moreover, officers of government, semi government,
autonomous organization, teachers, and officers of the government universities are also labeled
for credit card whose salary is conducted from issuing branches of sonali bank limited.
3.6 Software:
Sonali bank is in build to prepare its own web based programming.
 16

3.7 SWOT Analysis on E- Banking:

Strengths
I. Sonali bank is offering account information in online. The new feature of SMS banking
helps to view details of accounts at home.
II. It is cheap for both banks and customers. By lowering overhead costs, sonali bank
makes profit out of it. It needs less man power for performing this activities and helps
to save time to customers.
III. The services are very much convenient as they can be availed one click away.
IV. Sonali bank has largest customer base so with those largest customer base it has largest
E-banking network.
Weaknesses
I. Sonali bank provides slow banking services as a result it cannot bring upon new features
as it is now working hard to maintain existing features of E-banking.
II. Sometimes it creates security breakdown which indicates the problem of identification
of customer who is maintain the transaction.
III. Sonali bank’s internet infrastructure is not helpful and available all over time so there
creates problem in providing services with its full objectivity.
IV. Employees service towards customer is not satisfactory .As a result many customers
complaint regarding it because of these customers do not interconnect their traditional
bank accounts with E-banking.
Opportunities
I. Sonali Bank generating new features like- over mail and over phone service to
customer’s problems which will enlarge its E-banking facilities.
II. Non branch banking facilities can be provided through E-banking activities.
III. Like –Bikash, Rocket sonali bank also in creation such money transfer tool.
IV. Sonali bank is offering lower service charge which can accumulate all the aspects of
people in the country.
V. Sonali bank limited is generating evening banking service towards high valued customer
which will increase sonali bank’s popularity in banking sector.
Threats
I. As sonali bank is adapting E-banking now so there is a concern about security &
privacy.
II. As other state owned commercial bank are bringing out new competitive products
there is a matter of customer participation regarding E-banking products of Sonali
bank limited.
III. As the technology base is not strong so there is a risk of password fraudulent.
 17

Chapter 04 : Analysis
 18

4.1 An analysis on customer perception and satisfaction regarding E-banking of Sonali bank
Limited
1 )What is the most important reason you opened an E-bank account?
Now banks are providing various dexterity. Customers are engaging in these dexterities. Several
reasons generate them to open an E-bank account. The table below show the respondent’s
reply about it -

Option Percentage
Convenience 26%

Curiosity 0%
Safe and secure 30%
Low service charge 0%

Easy to maintain my banking transaction activity 44%

Figure -01 –Most important reason to open an e-bank account

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
convenience curiosity safe and secure low service charge easy to maintain my
transaction activity

( own source )
This graph represent the single most important reason to open an E-bank account. Among
50 respondents 26% opened it for convenience, 30% opened it for safe and secure and 44%
 19

opened it for easy to maintain transaction activity. So the most important reasons are safe
and secure and easy to maintain transaction activity in Sonali Bank Limited.

2 ) What was the most important single reason you choose this particular bank as your E-bank?
The table below reflects the most single important reason to choose sonali bank as their e-bank
-

Option Percentage

I have a traditional bank account with the same bank 70%

The brand name of the bank 24%

The excellent service offered by this bank 4%

Others 2%

Figure 02- Most important reason to choose this bank as e-bank

most important reason to choose this bank as E-bank

80%
70%
60%
50%
40%
30%
20%
10%
nk

0%
nk
nk
ba

ba
ba

rs
e

is

he
m

he

th
sa

ot
t

by
of
e
th

ed
e
it h

er
na

off
tw

ce
un

an

vi
co

br

er
ac

s
Th

nt
nk

le
ba

l
ce
al

ex
on

e
iti

Th
ad
tr
a
ve
ha
I

( own source )
This graph represents the important reason to open E-bank account in this bank. Among 50
respondents 70% of customer recognized mostly their traditional bank account with this bank.
 20

Other considered the brand name (24%) for Sonali bank. Only 2% considered excellent service
regarding sonali bank.

3) Which E-banking feature do you use regularly?

It will support to identify most promoted e-banking feature among the customers. The
respondent’s point of view is provided below-

Options percentage
Pay bills 4%
Make an account enquiry 60%
Transfer funds between accounts 8%
MT / DD / TT 8%
Order check books 12%
ATM 6%
others 2%

Figure 03- E-banking feature use regularly

E-banking feature use regularly

70%
60%
50%
40%
30%
20%
10%
0%
M

rs
ls

s
iry

/T

ok
bil

he
s

AT
t
un
qu

bo

ot
DD
y
pa

co
en

ck
T/
ac

he
nt

M
n
ou

rc
ee
cc

de
tw
na

or
be
ea

ds
ak

un
m

rf
fe
ns
tra

( own source )
This graph represents the features which customer use regularly. Among 50 respondents
most respondents use make an account enquiry (70%) feature. Other respondents use
order check books (12%), MT/DD/ TT (8%), transfer funds between accounts (8 %). In sonali
 21

Bank relatively less popular features among customers are pay bills (4%), ATM (6%) and
others (2%).
4) How do you think banks can improve their relationship with customers through the use
of E-banking?
Customers are the most important factor for banks. So it is very much important to
determine a good relationship with customers. There are various ways to improve banks
relationship with customers. Some significant reasons according to respondents point of
view shown below -

Option Percentage

Differentiation through lifestyle appeal 0%

Monitoring and identifying the popular features of E-banking 28%

Better communication through easily distribute and answering e- 72%

mail
other 0%

Figure 04 – Banks can improve their relationship with customers through the use of E-banking

banks can improve their relationship with customer through the use of E-banking
80%
70%
60%
50%
40%
30%
20%
l
ai
ng

10%
m
ki

e-
l

0%
a

an
pe

g
-b

in
ap

r
E

er

he
of
e

sw

ot
yl

e
st

an
ur
e

at

d
lif

an
fe
h

ar

e
ug

ut
l
ro

pu

ib
th

po

tr
s
on

di
e
th
a ti

ly
si
ng
nti

ea
yi
re

ti f

h
ffe

ug
en
Di

ro
id

th
d
an

on
ati
g
rin

ic
ito

un
on

m
m
m

co

( own source )
er
tt
Be

This graph represents how banks can improve their relationship with customers through the
use of E-banking. Among the 50 respondents mostly agree on the point of better
 22

communication through easily distribute and answering e-mail (72%).Other respondents agree
on the point of monitoring and identifying the popular feature of E-banking (28%).
5) Which of the following content would you value on a bank’s website?
The table below reflects that content customers would value on a bank’s website -

Option Percentage

Robust products and service descriptions 24%

E-banking demos and descriptions 4%

Online applications 0%

Credit report service 76%

Other 4%

Figure 05 – content would you value on a bank’s website

80%

70%

60%

50%

40%

30%

20%

10%

0%
robust products and E-banking demos and online applications credit report service other
service descriptions descriptions

( own source )
This graph represents the content which would value customer on a bank’s website. Among
50 customers, mostly value credit report service (76%) in bank’s website. Then they value
robust products and service descriptions (24%), E-banking demos and description (4%) and
other (4%).
 23

6) What factors make the E-banking system a good marketing communication tool?
The factors which make E-banking system a good marketing tool is given below –

Option percentage

Reduced barrier to entry 6%

Global reach 72%

Tracking and information 18%

Others 4%

Figure 06- factors make the E-banking system a good marketing communication tool

80%

70%

60%

50%

40%

30%

20%

10%

0%
reduced barrier to entry global reach tracking and information others

( own source )
This graph represents the factors which makes E-banking system a good marketing
communication tool. Among 50 respondents most respondents think that global reach
( 72%) make E-banking a good marketing communication tool. Other respondents think that
tracking and information (18%) , reduced barrier to entry ( 6%) and others ( 4%) make E-
banking a good marketing communication tool.
 24

7) Would you use your mobile phone to do your banking?

Under following represents whether customer use mobile phone to do banking or not -

Option Percentage

Yes 86%

No 10%

N/A 2%

Figure 07- mobile banking to do your banking

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
yes no N/A

( own source )
This graph represents the number of people using mobile phone to do banking. Among 50
respondents 86% people use mobile phone to do banking. 10% people do not use mobile
phone to do banking. Few people responses towards N/A (4%) .
 25

8) Which of the mobile banking feature would you use?

Mobile banking is a tool of E-banking. Customers mostly used mobile banking features are
below-

Option percentage
Balance inquiry 64%
Utility bill payment 8%
E-mail and text alerts 24%
Order 0%
Check books 4%
Internal account transfer 0%

Figure 08- mobile banking feature would you use

70%

60%

50%

40%

30%

20%

10%

0%
balance inquiry utility bill e-mail and text order check books internal account
payment alerts transfer

( own source )
This graph represent the features used by customers for mobile banking. Among 50
respondents 64% customers use balance inquiry feature. 24% customers use e-mail and text
alerts feature. Other customers use utility bill ( 8% ) and check books ( 4%) features.
 26

9) Do you suffer any security and privacy threat in accessing E-banking?

Under following represent whether customer suffer any security and privacy threat in
accessing E-banking

Option Percentage

Yes 56%

No 38%

N/A 6%

Figure 09- any security and privacy threat in accessing E-banking

60%

50%

40%

30%

20%

10%

0%
yes no N/A

( own source )
This graph represents whether customer feel any security and privacy threat in accessing E-
banking. Among 50 respondents 56% agree that they feel security and privacy threat. 38%
respondent said that they do not feel any security and privacy threat.
 27

10) Types of characteristics you want to see in a bank’s representative.

Under the following show the characteristics customer want to see in a bank’s representative

Option Percentage
Friendly and courteous manner 58%
Knowledge of banks mutual fund products and services 4%
Willingness to listen and help identify your need 18%
Provide guidance and advices 22%
Offer to other services or alternative means to meet your needs 6%
Recognition of you as valued customer 40%

Figure 10- characteristic customer want to see in a bank’s representative

70%
60%
50%
40%
30%
20%
10%
ds
es

0%
e

ne

er
ic
r

ne

es
rv
ne

om
r
c
se

ou
an

ur

vi

st
ad

ty
yo
d
m

cu
an

ee
y

d
s

d
tif
ou

an
ts

ue
m
en
uc
te

ce

l
to

va
od
ur

id

an

ns
co

pr

as
p

id
l

ea
he
d

nd

gu

u
an

yo
m
d
fu

e
an

ve
ly

id

of
l
ua
nd

ov

ati
n

on
te
ut
ie

pr

rn

ti
li s
fr

ni
te
to

og
s

al
nk

c
d
s

re
ba

es

an
gn
of

es
in
e

ic
i ll
dg

rv
w

se
le
ow

r
he
kn

ot
to
er
off

( own source )
This graph represents the characteristics customer want to see in a bank’s representative.
Among 50 respondents 58% want to see a bank’s representative friendly and courteous
manner, 40% want to see recognition of you as valued customer, 22 % want the bank’s
representative provide guidance and advices, 18% want willingness to listen and help identify
your need, 6% want offer to other services or alternative means to meet your needs and 4%
want knowledge of banks mutual fund products and services.
 28

11 ) Rate customer care unit performance

The rating customer care unit performance is below –

Option Percentage
Very satisfied 4%
Satisfied 46%
Neutral 36%
Dissatisfied 8%
Very dissatisfied 6%

Figure 11 – customer care unit performance

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
very satisfied satisfied neutral dissatisfied very dissatisfied

( own source )
This graph represents the customer care unit performance by Sonali bank limited. Among 50
respondents 46% are satisfied with their performance while 4% respondents are very satisfied.
36% respondents are neutral regarding this. 8% respondents are dissatisfied and 6% are very
dissatisfied with the customer care of Sonali bank Limited.
 29

12 ) Do you think bank need to increase more promotional activity to attract more customers
for E-banking ?
Bank need to increase more promotional activity or not to attract more customers shown
below-

Option Percentage

Yes 96%

No 2%

N/A 2%

Figure 12- need to increase more promotional activity to attract more customers for E-banking

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
yes no N/A

( own source )
This graph represents whether banks need to increase promotional activity to attract more
customers for E-banking. Among 50 respondents 96% think that bank need to increase
promotional activity to attract more customers.
 30

13) Overall how satisfied are you with the E-banking service?
The satisfaction level of customer regarding E- banking service shown below –

Option Percentage
Very satisfied 4%
Satisfied 52%
Neutral 32%
Dissatisfied 12%
Very dissatisfied 0%

Figure 13- how satisfied are you with the E-banking service
60%

50%

40%

30%

20%

10%

0%
very satisfied satisfied neutral dissatisfied very dissatisfied

( own source )
The graph represents that how much satisfied customers are E-banking service of Sonali bank
limited. Among 50 respondents 52% are satisfied with the E-banking service of Sonali bank
limited while 4% are very satisfied with them. 32% are neutral regarding this.12 % are
dissatisfied with the service of sonali bank limited.
 31

14 ) How frequently bank provides response about customer complaints ?

The table below show responses of banks about customer complaints-

Option Percentage

Fastly 10%

Rarely 18%

Sometimes 68%

No solution 4%

Figure 14- bank provides response about customer complaints

70%

60%

50%

40%

30%

20%

10%

0%
fastly rarely sometimes no solution

( own source )
This graph represents sonali bank responses towards customer’s complaints. Among 50
respondents 68% mostly think that bank provide sometime responses regarding complaints.
18% think that bank provide rarely responses. 10% think that bank provide fast responses and
4% think that bank provide no solution regarding customer complaints.
 32

15) What type of problems you face while receiving your service?
The problems faced by customers while receiving service is given below-

Option Percentage

Long queue 52%

Internet problem 8%

Security problem 14%

Unavailability of modern equipment 26%

Figure 15- problems you face while receiving your service

60%

50%

40%

30%

20%

10%

0%
long queue internet problem security problem Unavailability of
modern equipment

( own source )
This graph represents the problem faced by customers regarding E-banking activities of sonali
bank limited. Among 50 respondents 52% rated long queue as the biggest problem among
others. 26% of customers rated unavailability of raw material as an another problem.
Customers rated Internet problem as 8% and security problem as 14% .
 33

16) Do you think, every E-banking branch should maintain computer for those who does not
use smartphone?
Below the table determine every E-banking branch should maintain computer for those who
does not use smartphone –

Option Percentage

Yes 92%

No 2%

Neutral 6%

Figure 16- Every E-banking branch should maintain computer for those who does not use
smartphone

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
yes no neutral

( own source )
This graph represents customer’s opinion regarding whether every E banking branch should
maintain computers for those who does not use smart phone .Among 50 respondents 92%
think that sonali bank should maintain computer for those who does not use smart phone.
 34

17) Do u think E- banking security should be protected while information transfers?

Below the table represents E-banking security should be protected while information transfers-

Option Percentage

Yes 96%

No 0%

Neutral 4%

Figure 17- E-banking security should be protected while information transfers

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
yes no neutral

(own source )

This graph represents customer opinion regarding E-banking security should be protected while
information transfers. Among 50 respondents 96% think that yes, bank should protect E-
banking securities while information transfers.
 35

18) Under the following, which of the bank is providing better E-banking service?
Below the table shows the bank which is providing better E- banking service-

Bank’s name Percentage

Sonali bank 80%
Agrani bank 12%
Rupali bank 0%
Janata bank 8%
Bangladesh development bank limited 0%
Basic bank limited 0%
Bangladesh krishi bank 0%

Figure 18- which bank is providing better E-banking service?

80%
70%
60%
50%
40%
30%
20%
10%
0%
d

d
nk
k
nk
k

i te

i te

ite
an
an

ba
ba

l im
ib

lim

li m
ib

ta
ni

l
l

pa

k
na

nk

nk
na
ra

an
ru
so

ba

ba
ag

ja

tb

ic

hi
en

is
ba
m

kr
po

h
es
l
ve

ad
de

l
ng
h
es

ba
adl
ng
ba

( own source )
This graph represents the bank which is providing better E-banking service. Among 50
respondents 80% think that sonali bank is providing better E-banking service. Other 12% think
that agrani bank is providing better service and more other think that janata bank (8%) is
providing better E-banking service.
 36

19) Under the following, which of the bank provides most secure service?
Below the table represent which bank provides most secure service-

Bank’s name Percentage

Sonali bank 78%
Agrani bank 10%
Rupali bank 0%
Janata bank 12%
Bangladesh development bank limited 0%
Basic bank limited 0%
Bangladesh krishi bank 0%

Figure 19 – which bank provides most secure service?

80%
70%
60%
50%
40%
30%
20%
10%
0%
d

d
d
nk
k

i te
nk
k

ite
i te
an
an

ba
ba

im
ib

im
im
ib

ta

kl
ni

kl
l
l

pa
na

nk
na
ra

an

an
ru
so

ba
ag

ja

tb

ib
ic
en

ish
s
ba
m

kr
po

h
es
l
ve

ad
de

l
ng
h
es

ba
adl
ng
ba

( own source )
This graph represents which bank provides most secure service. Among 50 participants, 78%
think that sonali bank provide most secure service. Other 12% think that janata bank provide
most secure service and other 10% think that agrani bank provide most secure service.
 37

20) Under the following, which bank provides relatively lower E-banking service cost?
Below the table represents the bank which provide relatively lower E-banking service cost –

Bank’s name Percentage

Sonali bank 86%
Agrani bank 6%
Rupali bank 0%
Janata bank 6%
Bangladesh development bank limited 0%
Basic bank limited 2%
Bangladesh krishi bank 0%

Figure 20 : Which bank provides relatively lower E-banking service cost ?

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
nk

d
nk

nk

an

i te

d
ba

d
ba

ba

ite
ab

i te

im
li

im
li

ni

im
at
pa

l
na

ra

nk

l
jan
ru

kl
so

nk
ag

ba
an

ba
ic
tb

hi
s
ba
en

ris
m

hk
lpo

s
de
ve

la
de

ng
sh

ba
de
la
ng
ba

(own source )

This graph represents the bank which provide relatively lower E-banking cost. Among 50
respondents, 86% think that sonali bank provide relatively lower E-banking cost. While other
6% think that agrani bank and janata bank provide relatively lower E-banking cost. 2 % people
think that Basic bank provide relatively lower E-banking cost.
 38

21) Under the following, which bank provides fastest E-banking service in less time?
Below the table shows the bank providing fastest E-banking service in less time-

Bank’s name Percentage

Sonali bank 84%
Agrani bank 12%
Rupali bank 0%
Janata bank 10%
Bangladesh development bank limited 0%
Basic bank limited 2%
Bangladesh krishi bank 0%

Figure 21 – Which bank provides fastest E-banking service in less time?

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
d

d
d
nk
k

i te
k

nk

i te
ite
an
an

ba
ba

im

l im
ib

l im
ib

kl
ni

t
l

pa

nk
na

nk
na

an
ra

ru

ba
so

ba
ja
ag

tb

hi
ic
en

is
ba
m

kr
po

h
es
l
ve

ad
de

l
ng
h
es

ba
adl
ng
ba

(own source )
This graph represents the bank which provides fastest E-banking service in less time. Among 50
respondents, 84% think that Sonali bank provides fastest E-banking service in less time. Other
12% respondents think that agrani bank provide this service better among all. While other 10%
participants think that janata bank provide this service better. Only 2% think that Basic bank
provides this service better.

22) Under the following, which bank provides new E-banking services regularly?
 39

Below the table shows the bank providing new E-banking service regularly-

Bank’s name Percentage

Sonali bank 84%
Agrani bank 6%
Rupali bank 0%
Janata bank 8%
Bangladesh development bank limited 2%
Basic bank limited 0%
Bangladesh krishi bank 0%

Figure 22 - Which Bank provides new E-banking service regularly ?

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
nk
k

d
nk
k

an

d
d

ite
an

ba

i te
ite
ba

ib
ib

im

im
a

im
ni

t
pa
l

l
na

na

kl
ra

nk
kl
ru
so

ja

an
ag

an

ba

ib
tb

ic

is h
s
en

ba

kr
om

h
lp

es
ve

ad
de

l
ng
h

ba
es
adl
ng
ba

( own source )
This graph represents the bank providing new E-banking service regularly. Among 50
participants, 84% think that sonali bank is providing new E-banking service regularly. Other 8%
think that janata bank is providing new features regularly. While other 6% think that Agrani
bank is providing new features regularly. Only 2% think that Bangladesh development bank is
providing new E-banking service regularly.
 40

4.2 E-banking tools of state owned commercial banks in Bangladesh

Branch computerization

Bank’s name Numbers

Sonali bank 1210
Agrani Bank 935
Rupali bank 735
Janata bank 885
Bangladesh Development Bank limited 98

Basic bank Limited 53

Bangladesh Krishi bank 462

Online branches

Bank’s name Numbers

Sonali bank 1210
Agrani Bank 941
Rupali bank 563
Janata bank 885
Bangladesh Development Bank limited 43
Basic bank Limited 53
Bangladesh Krishi bank 289
 41

ATM network

Bank’s name Numbers

Sonali bank 53
Agrani Bank 26
Rupali bank 23
Janata bank 44
Bangladesh Development Bank limited 07
Basic bank Limited 16
Bangladesh Krishi bank 06
 42

Fish-Bone Analysis of State owned commercial banks in Bangladesh:

Machine People
Software Lack of maintenance

Computer Training
Poor E –banking
infrastructural
Device quality Standardization problem

Procurement Order Synchronization

Materials Method
 43

Environment Employee

Inconvenient condition Lack of knowledge

Poor service environment Training

Lack of Convenience

Customer opinion Outdated service

Lack of problem solving No new system

Communication Managerial system

 44

Chapter 05 : Findings
 45

Sonali Bank:
Sonali bank do not stand upon with convenient facilities. Still there are many complaints
regarding their ATM services as in near there is no ATM booth of sonali bank . Many customers
complaint regarding that they do not receive SMS though they had already requested for it.So
sonali bank is still lacking to maintain their E-banking activities.
Agrani Bank :
Agrani bank had not established any ‘ Disaster Recovery Site ‘ for online banking so there is a
chance of hindrance while maintaining E-banking activities in time of disaster.
Rupali Bank :
Rupali bank does not provide allowances for various activities such as- sugar, food industries
etc. In many rural areas there is also no branch of rupali bank limited.
Janata Bank :
“ JB pin cash” service does not provide all services of E-banking activites.Moreover janata bank
limited do not provide strong E- banking facilities towards customers .
Bangladesh Development Bank Limited:
BDBL has not introduced mobile banking feature. Still BDBL does not properly operating E-
banking activities. Informative website does not still provided
Basic Bank Limited:
Basic bank does not provide E-banking facilities like other banks. Many features are still not
introduced.
Bangladesh Krishi Bank :
Bangladesh krishi bank does not yet started E-banking facilities. It is still maintain general
banking activities.
 46

Chapter 06:
Recommendations and
Conclusions
 47

Recommendation:
Sonali Bank :
Sonali bank should emphasis more on introducing old, widow, disability allowances through e-
banking services as it will be helpful for them to avail service sitting at home. It should
introduce evening banking service to determine more customer base. 24/7 online banking
services should be provided from all over the branches. Customers problem solution should
also be provided through over phone and over mail activities.
Agrani Bank :
“ Agrani Doer Banking” should be effectively introduce to those upazillas where there is no
branches. The “disaster recovery site” should also be introduce for those branches to maintain
banking activities.
Rupali Bank :
Rupali bank should allocate its allowances like- sugar, food industries etc through e-banking
service. As in very rural area, there is no branch of rupali bank so E-banking facilities will help
the farmers to avail various facilities of rupali bank .
Janata Bank :
“ JB pin cash” service should provide also for allowances such as-old age, widow , disaster etc.
The service should extent its activities towards other sectors of banking.
Bangladesh Development Bank Limited:
In BDBL the website need to increase more information . The website need to show more
specifically the e-banking features. The implementation of mobile banking is still on process. To
maintain its banking activities and transaction more efficiently it should start mobile banking
activities.
Basic Bank :
Basic bank should emphasis more on introducing E-banking features. Basic bank is still behind
to introduce this. The bank should bring out mobile banking, sms banking etc
Bangladesh Krishi Bank :
Bangladesh krishi bank should introduce various e-banking features to maintain banking
activities. New invention is required towards farm related products which will help to
 48

customers to avail money for their needs. E-banking service should emphasis more on rural
areas where there is no branches of Bangladesh krishi bank limited.
Conclusion:
The report clearly represents that customers are not satisfied with E-banking performance of
Sonali bank Limited. If the banks want to enlarge their E-banking activities they should focus
towards convenient service, monitoring and identifying popular features, robust products and
service descriptions, reduction of barrier to entry. Customers should also have knowledge
regarding various hacking activities .Bank should provide risk awareness services to secure their
accounts. Proper attention should be given while encrypting information between banks and
customers. Other state owned commercial bank also working for the e-banking services. They
should emphasis particular sectors and enlarge better services. So the report is beneficial to
determine E-banking and its performance of state-owned commercial banks in Bangladesh.