Executive Summary

For Project Report under the Faculty of Business Administration of University of

Science & Technology Chittagong (USTC) is an obligatory part for all students.
The report includes the practical knowledge and information observed and
obtained during the program. As an employee I was appointed to the Mercantile
Bank Limited, Dagonbhuiyan Branch. My topic was determined as ““Practices of
General Banking Operations”.

This report mainly emphasizes on General Banking. The organizational structure

of Mercantile Bank Limited and its operation in Feni as well as in Bangladesh
have been identified through this report, which had been observed during the 2-
Months long practical period of the author.

MBL has started its journey as a Private Commercial Bank on May 20, 1999. MBL
has its prosperous past, glorious present, prospective future and under
processing projects & activities. The expectation of all class businessman,
entrepreneurs and general public is much more to MBL.

The objective of this study is to know the General Banking Operation of MBL and
to find out the problem of the bank particularly relating to the General Banking
operations.

All operations of the bank are performed under three major departments
‘General Banking’, ‘Foreign Exchange’ and ‘Loan & Advance’.

General Banking:
General banking includes the customer service (Account opening & Closing,
Remittance, Clearing, Account and Cash department). To be a customer of the
bank, a person must have a agreement with the bank, which is the legal basis of
Banker-Customer relationship. By opening an account a person can be a
customer of the bank. In MBL, there are mainly three types of deposit – (1)
Demand Deposit (2) Time Deposit and (3) Scheme Deposit.

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Foreign Exchange:
Foreign Exchange means exchange of foreign currency between two countries.
There are three types of foreign exchange transactions:
 Import
 Export
 Foreign remittance.

Loan & Advance:

Credit is the confidence of the lender in the ability and willingness of the
borrower to repay the loan at a future date. It is generally believed that
confidence is the basis of all credit transactions. The fundamental principals upon
which credit is generally based are Character, Capacity, Capital, Collateral &
Condition (5C’s). Lending is a function that is crucial to the banker because of the
associated risk and profit potential. Quality of lending depends on Safety,
Security, Liquidity, Purpose, Profitability, Social and Mercantile interest.

The Key Parts Of The Report Are:

1. An Overview Of MBL
2. Performance Evaluation Of MBL
3. Analysis Of Customer Satisfaction Of MBL
4. General Banking Operations
5. Finding & Recommendations

I have collected data and information from Bank’s annual reports, circulars bank
profile and published books.

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 CHAPTER # ONE

BACKGROUND OF THE STUDY

 INTRODUCTION
 OBJECTIVES OF THE STUDY
 SCOPE OF THE STUDY
 LIMITATIONS OF THE STUDY

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1.1. INTRODUCTION:

There are different types of bank in the country, such as Govt. Commercial bank
(like Sonali Bank), Pvt. Commercial bank (like NBL, EBL, AB Bank, Southeast
Bank etc); Sariah based bank (like Islami Bank, SIBL, AL-Arafah Islamic Bank etc)
and Agricultural Bank.

In the light of those Banks I have accomplished my practical from a commercial

Bank, which is Mercantile Bank Ltd. in Dagonbhuiyan Branch. The
organizational structure of Mercantile Bank Ltd. & its operation in Feni as well as
in Bangladesh have been discovers through this report.

I have tried my best to use this opportunity to enrich my knowledge on banking

system. After observing thoroughly, I have prepared this report on the basis of
the findings and observation relating to the topic.

1.2. OBJECTIVES OF THE STUDY:

# Immediate objectives:
 To know the present operations system of Mercantile Bank Ltd.
 To find out improve the functions of the MBL in respect of CD A/C, SB A/C,
FDR etc.
 To find out strategic growth rate (Benefit cost ratio, & other Economic
Sources of Income).
 To describe different sections of General Banking.
 To Find out problems related with General Banking

# Long term objectives:

 To develop General Banking system of MBL, Dagonbhuiyan
Branch.
 To find out contribution of MBL, Dagonbhuiyan Branch, Feni in banking
sector of Bangladesh.

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1.3. SCOPE OF THE STUDY:
Mercantile Bank Limited is one of the leading private banks in Bangladesh. The
scope of the study is limited. The present study is an attempt to evaluate the
general banking operations out of total banking system under Dagonbhuiyan
Branch of MBL.

Scope of this study has been described in two grounds:

Organizational Scope:
During Practical period in MBL, Dagonbhuiyan branch, among all the
departments of MBL, General Banking was emphasized.

Field Scope:

The study has been started after completing the MBM course and continued for
two months. The primary and secondary data were collected from different
sources of MBL and got full support from the officials of the MBL.

1.4. LIMITATION OF THE STUDY:

A Wholehearted effort was applied to complete the practical program and to
bring a reliable & fruitful result. In spite of having the wholehearted effort, there
exit some limitations. The limitations were as follows:

 Some data could not been collected for confidentiality or secrecy of the
management.
 The data required for sufficient analysis for writing report couldn’t be
collected due to excessive workload.
 In many cases Up-to-date information is not published.
 Large-scale research wasn’t possible due to constraints & restrictions
posed by the organization.

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 CHAPTER # TWO
METHODOLOGY OF THE STUDY

 METHODOLOGY
 DATA COLLECTION
 DATA PROCESSING AND ANALYSIS
 QUANTITATIVE RESEARCH
 QUALITATIVE RESEACH

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2.1. METHODOLOGY OF THE STUDY:
A Method involves a process or techniques in which various stages or steps of
Collection data / information are explained & the analytical techniques are
defined. A dictionary of social services, “ Methodology is the systematic and
logical study of the principles guiding scientific investigation”.
This research elaborates the study of the system of Mercantile Bank Limited.

2.2. DATA COLLECTION:

In preparing this report I have collected data and information from the following
sources.

Primary Sources:
Primary data were collected with the help of information discussed and
observed.

 Face to face daily conversation with the facilities of MBL trade service.
 Observation
 Doing work by hand
 Conducting with customers & staffs of the bank
Secondary Sources:
Secondary data were collected with the help of the followings:
 Annual Reports of the Mercantile Bank Ltd.
 Data from published Reports of different organization Viz Bangladesh
Bank, PB etc.
 Different Books, Journals, News Papers etc.
 Web Sites of MBL (www.mblbd.com.)

2.3. DATA PROCESSING AND ANALYSIS:

Analysis & interpretation of data have been carried with the help of computer &
manually. Statistical tools have been used in the analysis of data.
The secondary data that have been considered in this study are as follows:
 The Income Statement.
 Balance Sheet.
 Statement of cash flow.
 Directors’ Report.
Primary data is based on interviews of key personal of Mercantile Bank Limited.

2.4. QUNTITATIVE RESEARCH:

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Quantitative research is a more logical and data led approach which provides a
measure of what people think from a statistical and numerical point of view. For
example, if you wanted to know how many of your customers support a
proposed change in your products or service and how strongly (on a scale) they
support it.
Quantitative research can gather a large amount of data that can be easily
organized and manipulated into reports for analysis.

How to do it:
Quantitative research largely uses methods such as questionnaires and surveys
with set questions and answers that responds tick from a predefined selection.
Answer can be measured in strengths of feeling such as “strongly agree”
“disagree” or number such as scales out of 10.
This from of research is very fixable in terms of how it’s carried out such as
through the post, online or even over the phone.

2.5. QUALITATIVE RESEARCH:

Unlike quantitative research which relies on numbers and data, qualitative
research is more focused on how people feel, what they think and why make
certain choices.
For example, if you are thinking of changing your branding you would carry out
qualitative research to see what emotional reaction people have to the new
identity and what they associate it with.

How to do it:
Qualitative research is largely led with discussion around certain or ideas with
open questioning. Attendees are encouraged to explain or describe their reason
for having certain responses which can reveal underlying motivations,
associations and behavioral triggers.
The most common form of qualitative research consists of focus group relevant to
the target market or one to one interviews, conducted face to face or over the
telephone.

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 CHAPTER # THREE

OVERVIEW OF MERCANTILE BANK LIMITED

 HISTORICAL BACKGROUND OF MBL

 OBJECTIVES OF MBL
 MISSION & VISSION OF MBL
 BUSINESS GOAL OF MBL
 ORGANOGRAM OF MBL
 CLASSIFICATION OF BANK PRODUCT
 MAIN DEPARTMENTS OF MBL

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3.1.HISTORICAL BACKGROUND OF MBL:
Mercantile Bank limited has its prosperous post, glorious present, prospective
future & under processing projects & activities. Established as the first private
sector bank fully owned by Bangladeshi entrepreneurs, MBL has been flourishing
as the largest private sector bank with the passage of time after facing many
stress & strain. The member of the board of directors is creative businessman and
leading industrialist of the country.

The emergence of Mercantile Bank limited in the private sector is an important

event in the banking arena of Bangladesh. When the nation was in the grip of
severe recession, Govt. took the farsighted decision to allow in the private sector
to revive the economy of the country. Several dynamic entrepreneurs came
forward for establishing a bank with a motto to revitalize the economy of the
country.

Mercantile Bank limited was born as the first hundred percent Bangladeshi
owned Bank in the private sector. From the very inception it is the firm
determination of Mercantile Bank Limited to play a vital role in the Mercantile
economy.

A representative office was established in Yangon, Myanmar in October 1999 by

MBL & obtained permission from the Govt. of Bangladesh to handle border trade
with Myanmar. As a result MBL will be able to build a strong root in inter
Mercantile Banking horizon. Bank has been drawing arrangement with well
conversant money transfer service agency “Western Union”. It has a full time
arrangement for speedy transfer of money all over the world.

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3.2.OBJECTIVES OF MBL:

 Bringing modern banking facilities to the doorstep of general public through

diversification of banking services, thereby arousing saving propensity
among the people.
 To build up strong pillar of capital.
 To discover strategies for achieving systematic growth.
 To improve & broaden the range of product and services.
 To develop human resources by increasing employment opportunities.
 To create congenial atmosphere so that the client becomes interested to deal
with the Mercantile Bank Limited.
 To keep business morality.
 To develop welfare oriented banking services.
 To offer highest possible benefit to customer.

3.3.MISSION & VISION OF MBL:

Mission and Vision of Mercantile Bank Limited are given below:

3.3.1 MISSION:
With a view to achieving commercial objectives of the bank, MBL’s sincere and
all efforts stay put unabated. Respected clients and shareholders are attracted to
MBL for their transparency, accountability, social commitments & high quality of
clientele services.

3.3.2 VISSION:
To establish as a top grade efficient bank through best application of modern
information technology in Business activities, offering high standard clientele
services and proper coordination of foreign trade business is the core of vision of
MBL.

3.4.BUSINESS GOAL OF MBL:

To patronize, sponsor and encourage games & sports, entertainment and other
socio-economic activities, alongside providing the best services to the clients.

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3.5.ORGANOGRAM OF MBL:
Chairman Of Board

Board Of Directors

Managing Director

Assistant Managing Director

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

Senior Assistant Vice President

Assistant Vice President

Senior Principle Officer

Principle Officer

Officer

Probationary Officer

Junior Officer 12
3.6.CLASSIFICATION OF BANK PRODUCT:
In chart given below we find different products / services generally made
available by a bank:

Product

Deposit Advance Inter Mercantile Banking Consultancy Miscellaneous

Time Demand - Tax Consultancy - Self-Custody

- Marcent Banking - Credit Cards
- Travelers
- Project Counseling
- Cheques
- Investment Counseling
- Sale Of Drafts
- Standing
- Instructions
L/C Foreign
Currency

Fund Oriented Non-Fund Oriented

- Term Loans - Guarantees

- Clean Loans - Letter Of Credit
- Bills Discounting
- Pre-Shipment
- Post-Shipment
- Lines Of Credit
- Secured
- Unsecured
- Overdraft

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 3.7.MAIN DEPARTMENTS OF MBL (DAGONBHUIYAN BRANCH):
The main departments of Mercantile Bank Dagonbhuiyan Branch are in the
below:

MBL

GB Foreign Advance Accounts Administration &

Establishment
Exchange

Import

Export

Cash Deposit Remittance (local) & Clearing

Foreign

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 CHAPTER # FOUR
LITERATURE REVIEW ON GOUND
OF SERVICE MARKETING

 SERVICE MARKETING
 SERVICE MARKETING IN BANKING SECTORS
 7P,S OF SERVICE MARKETING IN BANKING SERVICE
 SERVICE MARKETING MIX IN BANKING SECTOR
 DELOPMENT IN MARKETING SCOPE AT THE ASPECTS OS SERVICE
MARKETING

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4.1.SERVICE MARKETING:

Service marketing is a sub field of marketing which covers the marketing of both
goods and services. A goods marketing includes the marketing of fast moving
consumer goods (FMCG) and durables. Services’ marketing typically refers to the
marketing of both business to consumer (B2C) and business to business (B2B)
services. Common examples of service marketing are found in
telecommunications, air travel, health care, financial services, all types of
hospitality services, car rental services, and professional services.

A service, according to Vargo and Lusch (2004), is ‘the application of specialized

competences (knowledge and skills) through deeds, processes, and performances
for the benefit of another entity or the entity itself. Services are economic
activities, rather than tangible products, offered by one party to another.
Rendering a service to recipients, objects, or other assets depends on a time-
sensitive performance to bring about the desired result. In exchange for money,
time, and effort, service customers expect value from access to goods, labor,
professional skills, facilities, networks, and systems; but they do not normally
take ownership of any of the physical elements involved.

4.2.SERVICE MARKETING IN BANKING:

ACCORDING TO; PROF DR. GUNAL ONCE
Dokuz Eylul University
Faculty of Economics and Business
Marketing Department
…………………………………………………………………………………………

4.2.SERVICE MARKETING IN BANKING:

Marking approach in banking sector had taken significance after 1950 in western
countries and then after 1980 in turkey. New banking perceptiveness oriented
toward market had influenced banks to create new market. Banks had started to
perform marketing and planning techniques in banking in order to be able to
offer their new service efficiently.
Marketing scope in banking sector should be considered under the service
marketing framework. Performed marketing strategy is the case which is
determination of the place of financial institutions on customers mind. Bank
marketing does not only includes service selling of the bank but also is the
function which gets personality and image for bank on its customers, mind. On
the other hand, financial marketing is the function which relates uncongenially,
differences and non similar application between financial institutions and
judgments standards of their customer.

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The reason for marketing scope to have importance in banking and for banks to
interest in marketing subject can be arranged as:
Change in demographic structure: Differentiation of population in number and
composition affect quality and attribute of customer whom benefits from banking
service.
Intense competition in financial service sector: The competition became intense
due to the growing international banking perceptiveness and recently being non
limiting for new enterprises in the sector. Increase in liberalization of interest has
intensified the competition.
Bank’s wish for increasing profit: Banks have to increase their profits to create
new markets, to protect and develop their market shares and to survive on the
basis of intense competition and demographic chance levels.
The marketing comprehensions that are performed by banks since 1950 can be
shown as in following five stages.
1. Promotion oriented marketing comprehension
2. Marketing comprehension based on having close relations for customers
3. Reformist marketing comprehension
4. Marketing comprehension that focused on specializing in certain areas
5. Research, planning and control oriented marketing comprehension.

4.3. 7 P’S OF SERVICES MARKETING IN BANKING SERVICES:

According to Head of the Department,

Department O Business Management,
Sri Vasavi College Erode
…………………………………………………………………………………………..

INTRODUCTION
Wherever there is uncertainty there is risk. We do not have any control over
uncertainties which involves financial losses. The risks may be certain events like
death, pension, retirement or uncertain events like theft, fire, accident, etc.
Insurance is a financial service fro collecting the savings of the public and
providing them with risk coverage. The main function of Insurance is to provide
protection against the possible chances of generating losses. It eliminates worries
and miseries of losses by destruction of property and death. It also provides
capital to the society as the funds accumulated are invested in productive heads.
Insurance comes under the service sector and while marketing this service, due
care is to be taken in quality product and customer satisfaction. While marketing
the services, it is also pertinent that they think about the innovative promotional
measures. It is not sufficient that you perform well but it is also important that
you let others know about the quality of your positive contributions.

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1. PRODUCT
A product means what we produce. If we produce goods, it means tangible
product and when we produce or generate services, it means intangible service
product. A product is both what a seller has to sell and a buyer has to buy. Thus,
an Insurance company sells services and therefore services are their product. In
India, the Life Insurance Corporation of India (LIC) and the General Insurance
Corporation (GIC) are the two leading companies offering insurance services to
the users. Apart from offering life insurance policies, they also offer underwriting
and consulting services.

2. PRICING
With a view of influencing the target market or prospects the formulation of
pricing strategy becomes significant.
Expenses : The cost of processing, commission to agents, reinsurance companies
as well as registration are all incorporated into the cost of installments and
premium sum and forms the integral part of the pricing strategy. Interest : The
rate of interest is one of the major factors which determines people’s willingness
to invest in insurance. People would not be willing to put their funds to invest in
insurance business if the interest rates provided by the banks or other financial
instruments are much greater than the perceived returns from the insurance
premiums.

3. PLACE
This component of the marketing mix is related to two important facets
**Managing the insurance personnel, and
**Locating a branch.
The management of agents and insurance personnel is found significant with the
viewpoint of maintaining the norms for offering the services. This is also to
process the services to the end user in such a way that a gap between the
services-promised and services offered is bridged over. In a majority of the
service generating organizations, such a gap is found existent which has been
instrumental in making worse the image problem. The transformation of
potential policyholders to the actual policyholders is a difficult task that depends
upon the professional excellence of the personnel. The agents and the rural career
agents acting as a link, lack professionalism.

4. PROMOTION :
The insurance services depend on effective promotional measures. It is essential
to have both personal and impersonal promotion strategies. In promoting bank

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business, the agents and the rural career agents play an important role. Due
attention should be given in selecting the promotional tools for agents and rural
career agents and even for the branch managers and front line staff. They also
have to be given proper training in order to create impulse buying. Advertising
and Publicity, organization of conferences and seminars, incentive to
policyholders are impersonal communication. Arranging Kirtans, exhibitions,
participation in fairs and festivals, rural wall paintings and publicity drive
through the mobile publicity van units would be effective in creating the impulse
buying and the rural prospects would be easily transformed into actual Account
holders.

5. PEOPLE:
Understanding the customer better allows to design appropriate products. Being
a service industry which involves a high level of people interaction, it is very
important to use this resource efficiently in order to satisfy customers. Training,
development and strong relationships with intermediaries are the key areas to be
kept under consideration. Training the employees, use of IT for efficiency, both at
the staff and agent level, is one of the important areas to look into. Human
resources can be developed through education, training and by psychological
tests. Even incentives can inject efficiency and can motivate people for productive
and qualitative work.

6. PROCESS :
The process should be customer friendly in bank industry. The speed and
accuracy of payment is of great importance. The processing method should be
easy and convenient to the customers. Installment schemes should be
streamlined to cater to the ever growing demands of the customers. IT & Data
Warehousing will smoothen the process flow. IT will help in servicing large no.
of customers efficiently and bring down overheads. Technology can either
complement or supplement the channels of distribution cost effectively. It can
also help to improve customer service levels. The use of data warehousing
management and mining will help to find out the profitability and potential of
various customers product segments.

A. Flow of activities : all the major activities of banks follow RBI guidelines.
There has to be adherence to certain rules and principles in the banking
operations. The activities have been segregated into various departments
accordingly.

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B. Standardization: banks have got standardized procedures got typical
transactions. In fact not only all the branches of a single-bank, but all the banks
have some standardization in them. This is because of the rules they are subject
to. Besides this, each of the banks has its standard forms, documentations etc.

C. Customization: There are specialty counters at each branch to deal with

customers of a particular scheme. Besides this the customers can select their
deposit period among the available alternatives.

D. Number of stores: numbers of steps are usually specified and a specific pattern
is followed to minimize time taken.

E. Simplicity: in banks various functions are segregated. Separate counters exist

with clear indication. Thus a customer wanting to deposit money goes to
‘deposits’ counter and does not mingle elsewhere. This makes procedures not
only simple but consume less time.

7. PHYSICAL DISTRIBUTION:
Distribution is a key determinant of success for all insurance companies. Today,
the nationalized insurers have a large reach and presence in India. Building a
distribution network is very expensive and time consuming. Technology will not
replace a distribution network though it will offer advantages like better
customer service. The physical evidences include signage, reports punch lines,
other tangibles, employee’s dress code etc.

A. Tangibles: banks give pens, writing pads to the internal customers. Even the
passbooks, chequebooks, etc reduce the inherent intangibility of services.

B. Punch lines : punch lines or the corporate statement depict the philosophy and
attitude of the bank. Banks have influential punch lines to attract the customers.
Banking marketing consists of identifying the most profitable markets now and
in future, assessing the present and future needs of customers, setting business
development goals, making plans-all in the context of changing environment.

4.4.THE MARKETING MIX IN BANKING SECTOR:

ACCORDING TO; PROF DR. GUNAL ONCE
Dokuz Eylul University
Faculty of Economics and Business
Marketing Department
…………………………………………………………………………………………

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1.SERVICE:
Recently, banks are in a period that they earn money in servicing beyond selling
money. The prestige is get as they offer their services to the masses.
Like other services, banking services are also intangible. Banking services are
about the money in different types and attributes like lending, depositing and
transferring procedures. These intangible services are shaped in contracts. The
structure of banking services affects the success of institution in long term.
Besides the basic attributes like speed, security and ease in banking services, the
rights like consultancy for services to be compounded are also preferred.

2.PRICE:
The price which is an important component of marketing mix is named
differently in the base of transaction exchange that it takes place. Banks have to
estimate the prices of their services offered. By performing this, they keep their
relations with extant customers and take new ones. The prices in banking have
names like interest, commission and expenses. Price is the sole element of
marketing variables that create earnings, while other cause expenditure. While
marketing mix elements other than price affect sales volume, price affect both
profit and sales volume directly.
Banks should be very careful in determining their prices and price policies.
Because mistakes in pricing cause customers’ shift toward the rivals offering
likewise services.
Traditionally, banks use three methods called “cost-plus”, “transaction volume
base” and “challenging leader” in pricing of their services.

3.DISTRIBUTION:
The complexities of banking services are resulted from different kinds of them.
The most important feature of banking is the persuasion of customers benefiting
from services. Most banks’ services are complex in attribute and when this
feature joins the intangibility characteristics, offerings take also mental
intangibility in addition to physical intangibility. On the other hand, value of
service and benefits taken from it mostly depend on knowledge, capability and
participation of customers besides features of offerings. This is resulted from the
fact that production and consumption have non separable characteristics in those
services. Most authors argue that those features of banking services makes
personal interaction between customer and bank obligatory and the direct
distribution is the sole alternative.

4.PROMOTION:
One of the most important element of marketing mix of services is promotion
which is consist of personal selling, advertising, public relations and selling
promotional tools.

5.PERSONAL SELLING:
Due to the characteristics of banking services, personal selling is the way that
most banks prefer in expanding selling and use of them.

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Personal selling occurs in two ways. First occurs in a way that customer and
banker perform interaction face to face at branch office. In this case, whole
personnel, bank employees, chief and office manager, takes part in selling.
Second occurs in a way that customer representatives go to customers’ place.
Customer representatives are specialist in banks’ services to be offered and they
shape the relationship between bank and customer.

6.ADVERTISING:
Banks have too many goals which they want to achieve. Those goals are fro
accomplishing the objectives as follows in a way that banks develop advertising
campaigns and use media.

1. Conceive customers to examine all kinds of services that banks offer.

2. Increase use of services
3. Create well fit image about banks and services
4. Change customer’s attitudes
5. Introduce services of banks
6. Support personal selling
7. Emphasize well service

Advertising media and channels that banks prefer are newspaper, magazine,
radio, direct posting and outdoor ads and TV commercials. In the selection of
media that reach this target easily and cheaply must be preferred.

**Banks should care about following criteria for selection of media.

1. Which media the target market prefer.

2. Characteristics of service
3. Content of message
4. Cost
5. Situation of rivals
Ads should be mostly educative, image making and provide the information as
follows :
1. Activates of banks, results, programs, new services.
2. Situation of market, government decisions, future developments
3. The opportunities offered for industry branches whose development meets
national benefits.

7.PUBLIC RELATIONS:
Public relations in banking should provide :
1. Establishing most effective communication system.
2. Creating sympathy about relationship between bank and customer
3. Giving broadest information about activities of bank.
It is observed that the banks in Turkey perform their own publications, magazine
and sponsoring activities.

4.5.DEVELOPMENT IN MARKETING SCHPE AT THE ASPECT OF

SERVICE MARKETING:

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ACCORDING TO; PROF DR. GUNAL ONCE
Dokuz Eylul University
Faculty of Economics and Business
Marketing Department
…………………………………………………………………………………………

Marketing scope develops day to day. These developments carry special

significance for service sector in which customer and service producer interact
closely.

1.INTERNAL MARKETING:
Especially in service sector like external relations, internal relations also have
significance. It requires finding and keeping successful personnel.
For personnel of the organization to be considered their own goals and service
situation, values of the organization are sold to them. The communication
techniques carried out for customers are also performed for the personnel in
internal marketing and this two techniques go together. For example, the ads that
aim creating firm’s image should be prepared with regarding go audience which
is composed of firm’s personnel.

2.NETWORK MARKETING:
This approach takes the organization as a sequence which involves producer and
customer that market services to each other in the organization. In this structure,
the activities of departments that compose organization would be more focused
on market. This will also affect the structure of organization.

3.RELATIONSHIP MARKETING:
It was mentioned that close relationship was established between producer and
customer in service sector. In addition to this, life cycle of a customer relationship
was also mentioned under the product outline.
According to the researchers, maintaining the relationship for extant customer
increases the profit of firms. It should be emphasized that this fact has an
importance for service sector.

Life cycle of a customer relationship is composed of three stages. At the first

stage, firms try to be well known and to acquire new customers. At the second
stage, the connection between customer and firm has been achieved. During the
stage, firms intensified their activities for acquired customers and both of them
promises mutually. At the third stage, these promises are accomplished and the
service is consumed. During the stage, firms face “Reality Instants” which could
possibly achieve satisfaction of customer and continuous relationship. This could
be also true for second stage. So, these instants should be managed successfully.

Implementation of close relations with customer successively and true

applications at reality instants could not be accomplished by responsibilities of a
marketing personnel. Besides, it should be remembered that consumption and

23
production of service are closely interrelated. At this context, marketing should
have role not only in production-consumption between instants, but also at
points that these intersect. In this case, 4P that was mentioned at second section
would be insufficient. So, we could divide service marketing into two parts as
specialist function (marketing mix, marketing researches) and marketing function
(buyer seller interactions)

Efforts in first stage in which customers are not so clear, at the customer
relationship life cycle could be minimized for lasting customers. This is achieved
by successful customer relations. In this approach, marketing may be defined as ;
“Marketing is for establishing, keeping, developing relationship with customers
in a manner that profit is got (especially in long term). So, objectives of two
relevant sides would be achieved. This would be accomplished by shared
promises and carrying out the promises.

24
 CHAPTER # FIVE

PERFORMANCE EVALUATION OF MBL

 FINANCIAL PERFORMANCE
 CALCULATION FOR RATIOS
 GRAPHICAL REPRESENTATION

25
 5.1.FINANCIAL PERFORMANCE:

Three Years Performance of MBL at a Glance

(Figure In Million)
Particulars 2011 2012 2013
Authorized Capital 2450.00 2450.00 2800.00
Paid Up Capital 619.03 805.47 1208.20
Reserve Fund 2115.03 2468.79 3360.18
Deposits 32948.05 40350.87 47961.22
Advance 27020.21 32709.68 96475.74
Investment 3564.82 6239.38 7760.38
Import Business 31648.20 42438.50 62759.00
Export Business 21344.10 28019.20 31824.00
Gross Income 4202.52 5728.82 6098.65
Gross Expenditure 3351.19 4582.04 5075.86
Profit Before Tax 581.13 1058.73 1475.25
Profit After Tax 271.67 507.49 650.89
Fixed Assets 1431.23 1627.29 1841.00
Total Assets 55046.14 66533.80 88342.00

(Figure In Tk.)
Particulars 2011 2012 2013
Book Value Of Share 441.36 406.50 379.50
Market Value Of Share 746.50 760.50 758.25
Earning Per Share 63.01 106.61 101.82

26
5.1.CALCULATION FOR THE RATIOS:

Profitability Ratios (Figures in Million)

# Calculation for Return On Assets (ROA) :
ROA = Net Profit After Tax / Total Assets
Year 2011 2012 2013
271.67 507.49 650.89
ROA 55046.14 66533.80 88342.00
= 0.493 % = 0.762 % = 0.736 %

Return On Assets

0.49%
0.74%
2013 2011 1
2
3

0.76%

2012

# Calculation for Return On Investment (ROI) :

ROI = Net Profit After Tax / Total Investments
Year 2011 2012 2013
271.67 507.49 650.89
ROI 3564.82 6239.38 7760.38
= 7.62 % = 8.13 % = 8.38 %

Return on Investment

7.62%
8.38%
2013 2011 1

2012 3

8.13%

27
 # Calculation for Return On Fixed Assets :
Return On Fixed Assets = Net Profit After Tax / Fixed Assets
Year 2011 2012 2013
271.67 507.49 650.89
Return On 1431.23 1627.29 1841.00
Fixed Assets = 18.98 % = 31.18 % = 35.35 %

Return On Fixed Assets

18.98%

35.35% 2011
2013
2012

31.18%

1 2 3

5.1.Graphical Representation :

Deposits

Particular 2011 2012 2013

Deposits 32948.05 40350.87 47961.22

Deposits

60000
47961.22
50000
40350.87
32948.05
40000
30000
20000
10000
0
Year
2011 2012 2013

Particular Deposits

28
 Profit

Particular 2011 2012 2013

Net Profit Before Tax 581.13 1058.73 1475.25
Net Profit After Tax 271.67 507.49 650.89

Profit Tax

2500

2011 2012 2013

2000

1475.25
1500
1058.73
1000
581.13 650.89
Capital 507.49
500
271.67

0 2011 2012 2013

Particular Net Profit Before Tax Net Profit After Tax

29
 CHAPTER # SIX

CUSTOMERS SATISFACTION OF MBL

 CALCULATION LEVEL OF CUSTOMER SATISFACTION

30
6.1. Calculation level of Customer satisfaction.
The Factors that affect the customer satisfaction in Dagonbhuiyan of MBL.

There are so many factors that affect the customer satisfaction. The following
factors are considered and which have been calculated through the standard
deviation & coefficient of variation.

Table: Calculation of customer satisfaction.

Sl. Factors Customers Avg. SD CV
No. I II III IV V VI VII VIII IX X
01. Employee 4 3 3 2 4 3 4 5 4 2 3.4 0.92 27.06%
Cooperation
02. Timely Service 4 3 3 2 5 5 3 3 3 2 3.3 1.00 30.30%
03. Minimum 4 3 2 1 2 4 3 2 3 2 2.6 0.92 35.38%
Waiting Service
04. Easy Access of 3 3 4 3 4 5 3 5 3 3 3.6 0.80 22.22%
Modern Service
05. Easy Process 4 2 3 2 5 4 3 4 4 3 3.4 0.92 27.06%
06. Social 4 3 5 2 5 5 3 5 3 4 3.9 1.04 26.67%
Environment
07. Secured 3 4 5 4 3 3 3 3 4 3 3.5 0.67 19.14%
08. Service after 3 4 3 4 3 2 2 3 4 3 3.1 0.70 22.58%
Sale
09. Easy Access of 3 4 4 3 4 3 4 3 3 4 3.5 0.50 14.28%
Required
Information
10. Less Costly 3 4 3 3 4 4 3 3 2 4 3.3 0.64 19.39%
11. Location of the 5 4 5 5 4 5 4 4 3 4 4.3 0.64 14.88%
Bank
12. Quick 3 1 3 4 3 4 4 3 3 4 3.2 0.87 27.19%
Response to
any Problems
Total 43 38 43 35 46 47 39 43 39 38
Average satisfaction 3.58 3.17 3.58 2.92 3.83 3.92 3.25 3.58 3.25 3.17
level

Calculation of Level of Customer Satisfaction

Let, 1= Most Dissatisfied, 2= Dissatisfied, 3= Neutral, 4= Satisfied, 5 = Most
Satisfied. n = Sample customers = 10
Number of factors = 12

31
Individual Customer Satisfaction level =
Working for one Customer is Samsul Alam (I)
Satisfaction Level = 43/12 = 3.58
Now, the overall satisfaction level =
=
=
= 3.425 or 4 (Satisfied)

Here the sample customers are very small in numbers. Although it is not possible
to get complete picture of satisfaction level, but it supplies some ideas about
easily satisfaction level. The result (3.425) shows that the level of customer
satisfaction is very nearer to Satisfied level (4). Since customer satisfaction is
satisfied level, but MBL can reach to Most Satisfied Level by developing its
products & customer service.

All the factors are mentioned in the table. The table shows that the average of
factors of Easy Access of Modern Service, Social Environment, Secured, Easy
Access of Required information, & Location of the Bank are above 3.5 which is
very closed to 4. It means MBL functions at satisfied level. But MBL should take
appropriate measures such that it reaches are the most satisfied level. But other
factors situation is very discouraging. Their positions below 3 or closed to 3. So
MBL must be serious about those factors. Otherwise MBL may suffer from
problem in future.

The table also shows that the coefficient of variation in Secured, Easy Access of
Required information, Less Costly & Location of the Bank is lower than other
factors. It indicates that the performance of these four factors is very well from
other factors in respect of customers* opinion. But Timely service & Minimum
waiting service provide very high coefficient of variation. It indicates that the
performances of these two factors are not satisfactory. So MBL should take
appropriate measure against these factors as soon as possible to ensure the
maximum profit.

32
 CHAPTER # SEVEN

GENERAL BANKING OPERATIONS

 GENERAL BANKING SYSTEM OF MBL

 ACCOUNT OPENING SECTION
 ACCOUNTS SECTION
 CHAQUE BOOK ISSUE
 CASH SECTION
 REMITTANCE SECTION

33
7.1.GENERAL BANKING SYSTEM OF MBL:
The general banking system deposits the overall banking of all sorts of day to day
transactions are performed as it plays a vital role in banking, the general banking
department that consists mainly of the following points are given below:
 Accounts opening section
 Account section
 Cash section
 Clearing section
 Remittance section
 Deposit section

7.2.ACCOUNT OPENING SECTION:

The account opening section is where the relationship between the banker & the
client begins with the opening of an account. Thus it is vital that bankers take
good measures in making sure that the customers are genuine since a lot of
forgery in initialed through improper identification. There are different types of
account for different purposes. The different types of accounts are very
commonly practice in MBL.
 Current Deposits (CD)
 Savings Bank Deposits (SB)
 Short Term Deposits (STD)
 Fixed Deposits Receipts (FDR)
 Monthly Savings Scheme (MSS)
 Cash Credit (CC)
 Consumer Credit Scheme (CCS)
 Security Overdraft (SOD)

It is also necessary to note who can open bank account. Further details will be
provided when explaining each type of account but below is a list of who can
open different types of account:
 Individual
 Sole Proprietorship Firm
 Partnership Firm
 Public Limited Companies
 Clubs
 Societies

34
7.3. Steps of Account Opening
Steps of account opening are summarized in the following flow chart:

Customer Ask what Deal the customer Check all the

he/she according to their papers
wants needs. Tell about provided by
the rules & the customer.
regulation.

Give Transaction The System will Give computer

profile [Basically give an A/C input of the
an account is open number & a necessary fields.
the after this step] customer ID

Scan the Update the Take the Print thanks

signature from authorized letter and send
card for persons and it to A/C holder
further use. file the to inform.
forms.

Print Introducer
letter and send it to
the introducer [who
has an A/C in the
Bank] to inform.

The A/C opening

fully done by this
time.

35
7.4. ACTIVITIES & PAPERS NECESSARY FOR OPENING AN ACCOUNT:

(1). For Saving Account (SB) :

The requirements to open Saving Account are as follows:
 Photograph (2) two copies with sign account holder & introducer.
 Commissioner certificate or photocopy of passport.
 Present & permanent address.
 Occupation & specimen signature.
 Introducer name, address, account number & initial deposit that vary
depending on the type of accounts.

(2). For Current Account :

(A) Individual:
 Photograph (2) two copies with sign account holder & introducer.
 Commissioner certificate or photocopy of passport.
 Present & permanent address.
 Occupation & specimen signature.
 Introducer name, address, account number & initial deposit that vary
depending on the type of accounts.
 Introducer must be current account holder

(B) Propertory:
 Photograph (2) two copies with sign account holder & introducer.
 Commissioner certificate or photocopy of passport.
 Present & permanent address.
 Trade License.

(C) Partnership:
 Filled out application from standing about the name & address of the firm.
 Partnership deed.
 Trade License.
 Two copies of passport size photograph (incase of partnership, photos of
the both partners Are required)
 Undertaking / declaration about the partnership is taken by the bank in a
whit paper (for proprietorship firms)

36
(3). For Joint Account :
If the account is a joint account, then the joint account holder should submit a
declaration & operational instruction of the account along with their signature,
the declaration is –

“Any balance to the credit of the account is & small be owned by us as joint
depositors, any liability what so ever incurred in respect of this account shall be
joint & several”.

(4). For Limited Company:

For the opening of an account of a limited company, the following documents
have to be submitted:
 A copy of resolution of the company that the company decided to open an
account in the MBL.
 Certified true copy of the memorandum and article of association of the
company.
 Certificate of incorporation of the company for inspection & return along
with a duly certified photocopy for banks record.
 Latest copy of balance sheet.
 Extract of Resolution of the Board/General meeting of the company for
opening the account and authorization for its operation duly certified by
the Chairman/Managing Director of the company.
 Certificate lists of names & signatures of the directors / officers bears.

(5). Clubs/Society:
The following documents have to be obtained in case of the account of the club or
society:
 Up to data list of officer.
 Certified copy of resolution for opening and operation of account.
 True copies of memorandum & articles of association (in case of
companies & registered body only) or in case of associations, club etc. The
rules regulations according to the law.
 Copy of Government Approval (if registered)

37
7.5. ACCOUNTS SECTION:
The accounts department is the most delicate and the most confidential
department in a bank. The main task of this department is to record all kinds of
transaction of the branch, confirming accuracy, preparing statement etc. Under
the computerized banking system, today the clean cash statement & the
supplementary statements in party ledger voucher are printed of computer.
Accounts function can be divided into two parts:

(1). Daily functions:

The daily functions of an accountant involve –
 Posting transfer from one account to another account.
 Preparing of the supplementary.
 Posting of various transactions in the computer that occurs through out
the day.

(2). Periodical functions:

The periodical function of the account department is to prepare different types of
statement for its own branch, Head office, Bangladesh Bank. The statement being:
 Daily position
 Daily resource position
 Comparative resource position etc.
 List of all transaction in a day.
 Cash-Cum day book.
 General Ledger.
 Thursday position.
 Weekly Statement of affairs.
 Statement of advance.
 Monthly, Quarterly, Yearly statement of Deposits, Loans & Advances,
Profit and Loss etc.

38
7.6.STEPS OF ISSUING CHEQUE BOOK:

Requisition for Verify the Signature of Verify the previous

Cheque Book the A/C Holder cheque books from
the system record

Take signature of the Seal the A/C no on Give entry in the

A/C holder or the pages register book.
authorized bearer in
the register book &
handover the cheque
book.

Give posting of
the cheque book
in the system.

39
7.7 CASH SECTION:
The cash department is the riskiest department of the bank. This is the section
where tight security is recurred to avoid any accidents. There is a limit to be
amount of cash that each counter can carry; carrying of excess cash is avoided for
safety reasons.

CASH RECEIPT:
When client deposits cash in the bank, the bank officer on receipt of the cash and
the pay in slip/credit voucher shall:
 Check & count the received cash.
 Make sure that the amount in word & number in the deposit are same.
 Check the account & me number.
 Enter particular of in slip/voucher in the receiving cash officer book.
 At last, send the pay in slip/voucher to the deposit department or to the
respective department.

CASH PAYMENT:
Priory payment of cash it is the officer’s duty to make sure that the cheque / or
the instrument has been genuinely passed. The following common precaution is
thoroughly practiced before honoring a cheque.
 Cheque of it is open or crossed cheque.
 The branch name in the cheque.
 The date in the cheque is very crucial. Cheque are normally valid three
months and pre-dated cheque are asked to present after the data given.
 The apparent tenor of the cheque. Whether any figure, date or anything
has been altered in the cheque presented.
 The specimen card signature in the cheque should match.

7.8 BOOK MAINTAINED BY CASH DEPARTMENT:

Vault Register:
This means book where amount of cash available in the branch is maintained.
That is amount in the vault register book.

Cash Register:
The register keeps record of all incoming cash payment. Similar to the cash
register book, this book keeps tracks cash of out going case that is all payments.

Cash Balance Book:

40
This is the book where cash balance is recorded by counting me notes and coins
that physically available. The balance in this book is compare with the vault
register, which should be the same. In case there is an error, that the figures
would not match but if no discrepancy is found then nothing is to be worried
about.

7.9 OUTWARDS BILLS FOR COLLECTION (OBC):

Procedure for Outward Bills For Collection:

Depositing the cheque alone with deposit-slip

Crossing of the cheque are done indicating the

Branch as collecting Bank

Endorsement “payee’s A/C will be credited on

realization”

Entries are given in the Outward Clearing Register

OBC Mechanism

The following things are done in this department:

 Pass outward instruments to the Clearing-House.
 Pass inward instruments to respective department.
 Return instruments incase of dishonor.
 Prepare IBCA or IBDA for the respective Branch and HO.

The following entries are given if the cheque is honored.

Customer A/C ---------------------------- Debit.
Mercantile Bank General A/C-------- Credit

The following entries are given if the cheque is dishonored.

Mercantile Bank General A/C------------ Debit
Customer A/C ------------------------ Credit.

Incase of Return (For Inward Instrument):

41
Mercantile Bank General A/C------------ Debit
Customer A/C ------------------------ Credit.

Incase of Return (For Outward Instrument):

Customer A/C ---------------------------- Debit.
Mercantile Bank General A/C-------- Credit

Incase of returning an instrument the respective officer usually looks for

following reasons:
 Account closed.
 Insufficient fund.
 Nor arranged for.
 Payment stopped.
 Refer to drawer.
 Amount in words in figures differs.
 Drawers’ signature differs.
 Exceeds an arrangement.
 Full covered not received.
 Payment stopped by drawer.
 Collection bank discharge irregular.
 Cheque crossed “ Account, payee only”.

7.10 REMITTANCE DEPARTMENT:

Remittance is one of the main components of general banking. The activities of
local remittance are –
 Telegraphic Transfer (TT)
 Demand Draft (DD)
 Pay order (PO)

7.11 TELEGRAPHIC TRANSFER (TT):

Telegraphic transfer TT may be done via online as desired by the remitter. But
the most commonly practiced in the MBL, Dagonbhuiyan Branch is also online.
The respective officer collects the advice from the online. The drawer & the
payees all information is given in the advice in order for this transaction to take
place. TT is issued against cash, check, letter of instruction etc.

42
Charges for TT:
1. 1 taka to 50000 taka commissions is 50 Tk.
2. More than 50000 Tk 1 Tk gives for every thousand.
3. 15% Vat pay by following commission.
4. For TT telex charges is 40 Tk.

7.12 DEMAND DRAFT (DD):

This is instrument issued by a particular branch of a bank to pay sum of money
by the bank. It is the safest & most acceptable media & bankers and a note,
commission, vat and postage is charged on issued of DD entries for issuing DD.
Cash/Clients A/c …………………….. Dr.
Income A/c (postage) ………………... Cr.
Commission on remittance…………… Cr.

7.13 PAY ORDER (PO):

Foe issuing a pay order, the client is to submit an application to GB in the
prescribed from. This form should be properly filled up and signed.

Payment Of Pay Order:

The pay order is presented to the bank either through clearance or for credit to
the client’s account. Whole payment, relative entry is given in the pay order
register with the date of payment.

Cancellation Of Pay Order:

the following procedure should be followed for the cancellation of the pay order
(PO):
 The client should submit a written request for canceling the pay order
attaching therewith the original pay order.
 The signature of the purchaser will have to be verified from the original
application form.
 Manager’s prior permission is to be obtained before refunding the amount
of the pay order.

Cancellation change is to be recovered from the applicant and only the amount of
the pay order less cancellation charge should be refunded. Cancellation of the PO
should also be recorded in the register.

43
CHAPTER # EIGHT

SWOT ANALYSIS

44
8.1. SWOT Analysis

SWOT analysis is the critical analysis about an organization, where the strengths,
weakness, opportunity and threats to that organization are analyzed. It includes
all internal and external and aspects of the organization. It can be therefore
defined as analysis of external and internal environment. The major objective of
doing the SWOT analysis is to find out the internal strengths that is in which
areas it is forward than its competitors and weakness that in which areas it has
lacking. At the same time, the organization can know the opportunities that are
available in the market for if and the threat ahead from its competitors or other
regulatory bodies. We can show the total thing by the following figure.

SWOT Analysis

Internal Analysis External Analysis

Strength Weakness Opportunity Threats

Figure: SWOT Analysis

I tried to find out its strength, weakness, opportunity and threats. I wish, this
would help the bank to make its service better and make a greater contribution to
the society and to make a higher profit. The result of SWOT analysis is as follows.

45
Strengths:
* It has well market reputation in the market
* It is doing mass banking
* Employee here is highly efficient
* Bank has several attractive deposit schemes.
* Efficient management is practiced in the bank.

Weaknesses:
* Lacking of eye catching in error decoration in the bank
* There is no marketing initiation in the bank.
* No plastic money.

Opportunity:
* Bank can increase the credit scheme
* Bank can improve its marketing and promotional activities
* New innovative products can be offered to attract the customers like
debit and credit card.
* Bank can offer new services like evening Banking
* Bank offer open branches in rural areas to capture the market.

Threats
* The number of private Banking is increasing
* Competitors are offering schemes that are more attractive to the customer
* Continuous pressure from the government to reduce interest rate
* Some banks are offering 24 hours banking facility.
* Lower interest rate is offered by some other banks.
* Some corporate customers are leaving the bank.

46
 CHAPTER # NINE

FINDINGS, RECOMMENDATION & CONCLUSION

 FINDINGS
 RECOMMENDATION
 CONCLUSION

47
FINDINGS:

At the time of performing practical program various data are collected from the
various section of Mercantile Bank Limited, Dagonbhuiyan Branch. Here some
problems are found, if MBL focus on those problem they can improve their
service and can satisfy client more. Findings of the study are as follows:

1. For opening an account different forms have to be filled out with the same
information like name, address, nationality, date of birth etc. This account
opening procedure takes a lot of time, which is boarding for clients. Also
this procedure is harmful for the employee. Because it takes a long time to
supervision.
2. Computer facility for every employee is not available in cash department
and other. So it takes a long time for online transaction customers.
3. MBL is not performing fully automated banking service. So, MBL can not
provide the customer quick service than other bank like as DBBL SCB,
HSBC bank etc.
4. There is a very few number of ATM booth in Feni as well as in whole
country. The formalities of getting ATM card are very lengthy process.
5. Real banking operation of MBL, Dagonbhuiyan Branch is not in
satisfactory level.
6. Without information to the clients MBL change interest rate of FDR and
other products.
7. The credit risk management process of MBL is quite commendable.
Systematic and timely monitoring and appropriate documentation are
tried to be maintained.

48
RECOMMENDATIONS:

In spite of limitation, Mercantile Bank Limited has nothing wrong with their
marketing process. They still follow the selling concepts of marketing. It should
be the marketing concept, which is more desirable for any business. But the
problem is that many competitors have entered in the banking sectors in
Bangladesh. So, re-pricing should be set if the bank wants to be competitive with
their products. As per observations some recommendations for improvement of
the situations are as follows.

1. To offer specialized and quality service in the competitive marketing

environment, the network system of the computer should be well
skilled.

2. The online service of mercantile Bank Limited is entirely dependent on PC

BANK 99. Most of the time online remains out of order resulting in a
lower efficiency and customer dissatisfactions. Therefore MBL needs to
update their online service as soon as possible.

3. Credit card facility should be made within a short period.

4. Mercantile Bank Limited can also concentrate on providing training to the

employees. As they have a training center, they can design training
program in way that the employees can take the advantage of learning
from it to enhance their career.

5 Mercantile Bank Limited is an initiator of foreign banks as it's

continuously trying to adopt services that are similar to the foreign banks.
Thus, there is an opportunity for MBL to increase their level of service by
following those of the foreign banks.

6 Mercantile Bank Limited can also provide incentives that will help to
generate more motivation and enthusiasm within the employees.

7. Mercantile Bank Limited should update its brochure and give

advertisement on TV so that every initiative of the bank can go at the door
of the customers.

8. Finally steps should be taken to regularize the newly introduced various

schemes compared to other banks (Domestic and foreign banks). As a
result the number of clients will be increased over the years.

49
CONCLUSION:

Proper financial system of a country can contribute towards the development of

the country’s economy. In our country Bangladesh, banks have a leading power
to its financial system. Banking sector of Bangladesh has undergone dramatic
changes, since the independence in 1971 & now it is considered to be one of the
highly focused and compared to other sector, more regulated sector in the
country. Govt. plays a crucial role to the private commercial banks through
imposition of Deposit restriction, Lending role & other banking operations. In the
recent years of banking business, Mercantile Bank Ltd. has shown better
performance comparing with other banks.

Credit management policies & techniques used in MBL at present no doubt are
comparable to inter Mercantile standards. The officials follow the policy very
strictly. They are choosy and conservative in sanctioning Loan. The proposal is
thoroughly scrutinizes by the loan sanctioning authority. The total function of the
credit division is monitored periodically. The bank’s classified loan to the total
Advance is low. Management and others related to Mercantile Bank are trying to
formulate new services & products.

50
ELABORATION
REFERENCES
&
APPENDIX

51
 ELABORATION

MBL : Mercantile Bank Limited

CCS : Consumer Credit Scheme
TT : Telegraphic Transfer
DD : Demand Draft
MTA : Mail Transfer Advice
PO : Payment Order
LRA : Leading Risk Analysis
LTR : Loan against Trust Receipt
PAD : Payment Against Document
FDBP : Foreign Document Bill Purchase
SOD : Secured Overdraft
APS : Aziban Pension Schemes
ASP : Agrim Sanshay Prokolpo
CC (Hypo) : Cash Credit (Hypothecation)
CD : Current Deposit
SB : Saving Deposit
FDR : Fixed Deposit Receipt
FBP : Foreign Bill Purchase
MSS : Monthly Savings Schemes
DD : Demand Draft
SSS : Special Savings Schemes
OBC : Outward Bills for Collection
TIN : Tax payment Identification Number
SWIFT : Society For World Wide Inter Bank Fund Transfer
DBDS : Double Benefited Deposit Schemes
EOL : Excess Over Limit
CIB : Central Information Bureau
VAT : Value Added Tax
MT : Mobile/Male Transfer

52
 REFERENCES:

1. Chowdhury L.R., 2002, a text book of bankers advance, (2nd edition),

Page 13-32, fair corporation, Dhaka.

2. Hashem Abud, 1982, what the bankers does, 2nd edition,

Page 1-18, Dhaka.

3. Khan A.R, 2010, Bank Management, 2nd Edition, Page 170 - 178.

4. MBL, 2010, Statement of Affairs, Mercantile Bank Limited, Dagonbhuiyan

Branch 7pp.

5. Anon, Annual Report, 2013, Mercantile Bank Limited, Dagonbhuiyan

Branch Vol-1, Page 16-38

6. Websites: www.mblbd.com

7. Websites: www.google.com

53
 APPENDIX-1
Customers' Satisfaction toward the services offered by Commercial bank: A
study in MBL

Questionnaire

For Depositor

Category: New customer

Name of the Customer: --------------------------
Profession: -----------------------------------------

1. How did you know about the MBL?

a. Employees of MBL b. Relative c. Friends d. Newspaper e. Others.

2. What factors influenced you to come to open an account in MBL?

a. Various attractive accounts b. More secured c. More profitable d. Others.

3. How did you know the details regarding various attractive accountants?
a. Respective employees. b. Brochures. c. Relatives. d. Friends. e. Others.

4. What type of account are you going to open?

a. Saving a/c. b. Current a/c. c. Fixed a/c. d. Others.

5. How far was the respective employee helpful to open the A/C?
a. More than expectation b. As you expected. C. Less than expectation.

6. How long did it take to open the A/C?

a. 30 minutes. b. 1 hour. C. 1.5 hour d. More

7. Do you think that time can be minimized by them to open the A/C?
Yes. No.

8. Do you have any recommendation to improve the performance of the bank?

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 APPENDIX-2
For Depositor

Category: Existing Customer

Name of the Customer: --------------------------
Profession: -----------------------------------------

1. How long have you been engaging with the bank?

a. 0 - 6 months. b. 6 - 12 months. c. More

2. What type of account do you have?

a. Saving a/c. b. Current a/c. c. Fixed A/c. d. Others.

3. How much Co-operation do you get from the respective employees of different
Section/department?

a. Highly Co-operative b. Moderate. c. Low

4. Did you ever face any type of discrepancies or problems?

a. Yes. b. No
If yes, did the authority volunteer to solve those problems?

a. Yes. b. No.

5. How many times did they take to solve these problems?

a. Standard time. b. More than required time.

6. How do you differentiate MBL from other banks?

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7. Did you ever wait in a long queue?
a. Yes. b. No.
If yes, why & how long?
For ---------------------------------
Time ------------------------------

8. Did you ever feel boring at the time of waiting?

a. Yes b. No.

If yes, Why?

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9. Do you have any recommendation to improve the performance of the bank?

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