NORTH SOUTH UNIVERSITY

Fall 2022
Course title course code: MGT212
Section: 06 Group number: D
Report title: CITY BANK
Group member’s name and ID:
 Omar Faruk Alam - 2221855630
 Meher Tasnia Meghla - 2221029603
 Yasin Rahman Shad - 2238281630

Submitted to: TASNIM TARANNUM (TNN)

Date of submission: 20th December 2022
LETTER OF TRANSMITTAL

December 20, 2022

Tasnim Tarannum

Lecturer,

Department of management

School of Business Studies and Economics,

North South University

Dear Ma'am,

As per your guidance, this is the report that has been assigned to us. The information we learned in the
course MGT212, on the subject of "CITY BANK," has been used to complete the report.

With as much information as we were able to gather, we did our best to complete this report. We are
confident that you will benefit from our laborious efforts and be able to make sense of everything in this
report. If you require assistance in understanding this report, however, kindly let us know.

Obediently yours,

Omar Faruk Alam - 2221855630

Meher Tasnia Meghla - 2221029603

Yasin Rahman Shad - 2238281630

Executive Summary

The report is based on the analysis of the collection procedure of retail

loans of the CITY BANK. Internship program is the pre- requisite for the
graduation in BBA. Classroom discussion alone cannot make a student
perfect in handling the real business situation; therefore it is an opportunity
for the students to know about the real life situation through this program. A
report has to be built for the university and organization requirement. The
topic of the report is “Analysis of collection procedure of Retail loan”. The
main purpose of the report becomes very clear from the topic of the report.
The report discusses about the collection procedure and activities of retail
loan, interest rate of different bank, discussion of delinquency data of last
financial year and forward flow and backward flow of retail loan. The report
is broadly categorized in seven different parts. At first there is a prefatory
where describe the relation between banking sector and economy along
with introduction, origins, objectives, scopes of the report, methodology and
limitation. The main objectives of the report are identifying the collection
procedure and activities and overall last financial years. Part two describes
the overview of CITY BANK, vision, mission, values, organogram and also
general activities of the CITY BANK. Part three focuses on activities which
are undertaken in Retail Finance Center. It includes overview of Retail
finance center, collection department, collection objectives, collection
organization structure, activities undertaken in collection department, the
key areas of responsibility as a front-end Collector, collection tools. Part
four focuses on challenges of the responsible position and proposed
course of action. Part five narrates lessons learned from the internship
program and it focuses on inter personal achievements, organizational
terms and understanding and provisioning policy. Part six is analysis the
delinquency ratio of last financial year, forward flow, backward flow and
reasons of these factors. Last part ends with a concluding summery and
recommendation for future strategic action, bibliography and appendix.
 Index

S. Table of contents Page

No no.
.
1 Introduction 1
2 An overview of the city bank 2-3
3 Company organogram 4-5
4 Organizations culture 6-7
5 Situational Analysis 8-10
6 SWOT Analysis 11-14
7 Strategies 15-20
8 Management Actions 21
9 Recommendations 22
10 Conclusion 23
11 References 24
Introduction:

With the advent of the 21st century, globalization and consolidation, multinational and
foreign companies are making their impact in the third world economy including that of
Bangladesh. To address this ever increasing competition, Bangladeshi financial
institutions and other companies and firms gearing themselves in order to meet
challenges both locally as well as internationally. Due to globalization and expansion of
international business, finance plays the major roles for economic development. The
development of a modern economy would not have been possible without the use of
money. A fundamental characteristic of money is that it is like a collective commodity.
There is a parallel relationship between money and banking. Bank is an important and
essential financial institution for the necessity of the use of money and the protection of
the money. At the very arena of globalization and technological innovation, banking
business has become more competitive. To cope up with this, bankers should have
huge theoretical knowledge and professional skill as well as technical basis. As a BBA
student, I felt that banking is an excellent area to gather some practical knowledge. With
a view to develop skilled professionals in the banking area, NSU has undertaken the
internship-training program for its BBA students. As a partial and essential requirement
of the BBA, on authority’s instruction I have selected the City Bank Limited, one of the
prominent banking institutions of Bangladesh to acquire some practical experience in
banking, especially in the correspondent banking program. Before going to the main
report I would like to mention that it was not possible for me to cover the entire activity
of the 25 years old banking organization in the given limited time.

1
An overview of the city bank:

THE CITY BANK is one of the oldest private commercial banks operating in
Bangladesh. The Bank has been operating since 1983 with an authorized capital of Tk.
1.75 Billion under the entrepreneurship of twelve prominent & leading businessmen of
the country. The noble intention behind starting this Bank was to bring about qualitative
changes in the sphere of Banking and Financial management. Today The City Bank
serves its customers 89 branches spread over the country & about three hundred
oversea correspondences covering all the major cities and business centres of the
world. The services include wide diversified areas of trade, commerce & industry which
are customized to the specific needs of the customers and are famous for an
exceptional level of prompt and personal attention. Over the years the Bank has
expanded of Its Services. The extensive and ever growing domestic network provides
and carries various products and services. THE CITY BANK has already introduced
some new Banking products like dual currency Credit Cards, ATM and Online services
which has created attraction among the clients. The Bank is going to introduce real time
Internet, SMS and Phone Banking systems with all modern delivery channels at an
early date. For significant performance, The Bank has earned national & international
recognition. THE CITY BANK was one of the 12 Banks of Bangladesh among the 500
Banks in Asia for its asset, deposit & profit as evaluated by “ASIA WEEK” in The Year
2000. Other than that, THE CITY BANK LIMITED received the “Top Ten Company”
award from the Prime Minister of the People’s Republic Of Bangladesh. We have a
distinguished Board of Directors which consists of thirteen successful and reputed
businessmen. Mr. Aziz Al-Kaiser, a top leading businessman, industrialist, pioneer
personality & entrepreneur of private sector’s Bank in Bangladesh, is the Chairman of
the Bank. Page | 6 Mr. Kazi Mahmood Sattar a dynamic, nationally & internationally
reputed Banker is the Managing Director of the Bank. The bank currently has 89 online
branches spread across the country that include a fully fledged Islamic Banking branch.
Besides these traditional delivery points, the bank is also very active in the alternative
delivery area. It currently has 100 ATMs of its own; an ATM sharing arrangement with a
partner bank that has 225 ATMs in place; SMS Banking; Interest Banking and so on.
Soon it’s Customer Call Center is going to start operation. THE CITY BANK is the first
bank in Bangladesh to have issued Dual Currency Credit Card. The bank is a principal
member of VISA international and it issues both Local Currency (Taka) & Foreign
Currency (US Dollar) card limits in a single plastic. City Bank prides itself in offering a
very personalized and friendly customer service. It has in place a customized service
excellence model called GAP (Graceful-Appropriate-Pleasing) that focuses on ensuring
happy customers through setting benchmarks for the bank’s employees’ attitude,
behaviour, readiness level, accuracy and timeliness of service quality. CITY BANK is
one of the largest corporate banks in the country with a current business model that
heavily encourages and supports the growth of the bank in Retail and SME Banking.
The bank is very much on its way to opening many independent SME centers across
the country within a short time. The bank is also very active in the workers’ foreign
remittance business. It has strong tie-ups with major exchange companies in the Middle
East, Europe, Far East & USA, from where thousands of individual remittances come to
the country every month for disbursements through the bank’s large network of 89
online branches. The current senior management leaders of the bank consist of people
from the multinational banks with superior management skills and knowledge in their
respective “specialized” areas. The bank this year, is celebrating its 25th year of journey
with the clear ambition of becoming no.1 private commercial bank in the country in 3
years time. The newly launched logo and the pay-off line of the bank are just one initial
step towards reaching that point. Page | 7 Vision The Financial Supermarket with a
Winning Culture Offering Enjoyable Experiences. Mission Offer wide array of products
and services that differentiate and excite all customer segments. Be the „Employer of
choice‟ by offering an environment where people excel and leaders are created.
Continuously challenge processes and platforms to enhance effectiveness and
efficiency. Promote innovation and automation with a view to guaranteeing and
enhancing excellence in service. Ensure respect for community, good governance and
compliance in everything we do. Values Result Driven Engaged & Inspired &
Transparent Focused on Customer Delight Courageous & Respectful.
Organizations culture:
The City Bank Limited has an interactive corporate culture. There are no hidden barriers
or boundaries while communicate between superior and subordinate. This corporate
culture provides as a great motivation factors among the employee.

The management is very professional and genuine employees and managers respect
each other because of the relationships that have been built. The workplace culture has
always been like family. The employees all get along and treat each other like family.
The hardest part of the job is learning to balance each task and perform what each
customer is requesting the way they want it. The most enjoyable part of the job is
getting to learn more each day and interacting with different customers.

Research indicates six dimensions that appear to capture the essence of an

organization’s culture

1.Adaptability-The City Bank Limited has the degree to which employees are
encouraged to be innovative and flexible and to take risks and experiment.

2.Attention to detail-The City Bank Limited has the degree to which employees are
expected to exhibit precision, analysis, and focus on details.

3.Outcome orientation-The City Bank Limited has the degree to which management
emphasizes results rather than on the techniques and processes used to achieve them.

4.People orientation-The City Bank Limited has the degree to which management
decisions consider the effect of outcomes on people within and outside the organization.

5.Team orientation-The City Bank Limited has the degree to which collaboration is
encouraged and work activities are organized around teams rather than individuals.
6.Integrity-The City Bank Limited has the degree to which people exhibit honesty and
high ethical principles in their work.

Strong culture

The City Bank Limited is a strong culture. Because-

1.The City Bank Limited has cultures in which key values are deeply held and widely
shared.

2.The City Bank Limited has a strong influence on organizational members.

3.The City Bank Limited has size of the organization.

4.Age of the organization.

5.Rate of employee turnover.

6.Clarity of cultural values and beliefs.

7.The City Bank limited values widely shared.

8.Their culture conveys consistent messages about what’s important.

9.Most employees can tell stories about company history.

10.Their employees strongly identify with culture.

11.The City Bank Limited has strong connection between shared values and
behaviours.
Situational Analysis:
1.Corporate Social Responsibility(CSR):

The City Bank Limited does numerous CSR exercises.. One of the exercises is Green
Banking. Green Banking has been conceptualizing to execute the more extensive idea
like economical advancement. Green keeping money is essentially working saving
money business in such a design, to the point that a legitimate or satisfactory
consideration in social, biological, ecological elements of condition by limiting
preservation of natural and normal assets. As a socially obligation organization City
Bank has grasped the idea of green managing an account and is bringing activities lined
up with the national bank green saving money rules. City Bank likewise gave over
checks for Taka 4 center for the prime priests training bolster trust and Suchona
establishment under its CSR exercises. The banks Chairman of official comity and Vice
Chairman of Bangladesh affiliation bank Mr. Rubel Aziz and banks autonomous
executive Barrister Tanjib Ul Alam gave over the checks to prime minister Sheikh
Hasina at Gono Bhobon on May 15,2015.

2.Planning:

Planning is the way towards surveying in association’s objectives and making a

reasonable arrangement of activity for meeting those objectives.The essential strides in
the administration arranging process include making a guide that blueprints each
assignments the organization must achieve to meet its general destination. Much like
composition a strategy for success, an administration design mulls over short and long
haul corporate techniques. There are singular supervisor for singular procedure ought to
incorporate a system for assessing the advance toward objective consummation
through built era.
3.Communication:

Maintaining the connection amongst superiors and subordinate contrast enormously,

contingent upon the desires of the individual gathering. Some will make due with
nothing not as much as a dear fellowship with their unrivalled, others might be quite
recently centered around keeping up an expert relationship. There are four sorts of
relationship upkeep methodologies for this variety of relationship. To begin with there
are casual collaboration, e.g. clowning and non business relates discussions that stress
making a kinship. There are formal co operation e.g. obligingness and regard for the
prevalence power. There are additionally strategies to seem great to the predominant
e.g. a reluctance to convey awful news or being eager.

4.Ethical Issues:

Each and every one will concur, the upkeep of a moral culture is of most extreme
significance to any establishment since it will in any event make one delay to think
before intentionally accomplishing something incorrectly. The administration of City
Bank confronts some moral issues. The bank administration has keep up 100% moral
and trust issues in the saving money process since he is working for guaranteeing
people groups security.

5.Motivation:

In each organization inspiring is essential for the workplace. Without an inspired work
environment organization could be set in the unsafe position. Spurred representatives
can enable an organization to accomplish more elevated amounts of yield. The
supervisor inspired his representatives through birthday party,some refreshment party,
and furthermore they permit their representatives one month leave which is obligatory in
each and every year, and gives reward to the representatives for their work and
energize them.

6.Solving Problems:
In the case of solving problem inside the organization. The City Bank Managers
communicate with their superior of solution of the problem isn’t available in their formal
guideline. The same rules followed by the managers if any external problem arises.

7.Controlling and Monitoring:

Directors control those components that they can control to keep everybody pushing
toward the objective. A great chief will dependably screen what their workers are doing.
Knowing when to give a representative a chance to commit an error they can gain from
and when the director need to venture in and mentor them is an error they can gain
from and when the director need to venture in and mentor them is an exercise in careful
control. When a director needs to venture in and control the action of the group or an
individual it is frequently important to give negative criticism. For some extends
administration part. In the means effective venture administration the chief additionally
observe the assignment of checking the group.
SWOT ANALYSIS :

Strength

1. Financial Strength

The City Bank took a strategy of quality growth by adhering to compliance in all areas of
operation. Bank consolidated its position as one of the successful financial institutions
and maintained satisfactory growth across many of its business lines. Bank remained
focused in all key areas covering capital adequacy, meeting provision for loans and
advances, good asset quality, sound management, satisfactory earning and strong
liquidity.

Recognizes credit rating agency CRISL on the basis of Banks performance for the year
2006 assign Bank “A” in the long term category and “ST-3” in the short term category.
Bank was able to make a net profit before tax of Tk. 653 million. Deposit of the bank
increased by Tk. 8924 million indicating a growth of 29%. Loans and advances, which
are well diversified, have grown by 32% last year.

2. Modern Technology for Services

Demand for modern services in the banking sector is growing faster. The services are
now technology based and this bank is not for from competition. The City Bank already
implemented world class financial banking software as one of the major technological
initiatives in the IT infrastructure development. Ups to now, 77 branches are under this
software. Another factor needs to be under consideration that City Bank is the first
among domestic banks to introduce Dual Currency City Card.

(c)Corporate Social Responsibility

As one of the leading bank, the City Bank plays its responsibility towards the society
and contributed donation to various educational instates Trustee organizations. The
“City Bank Foundation” has been established for same intention. The foundations aim at
gearing up its on ongoing and new initiatives the cause of humanity through viable
social welfare.

(d)Good Corporate Governance

In the absence of any code of conduct and business principles, it is difficult to have a
Self-assessment of the status of the governance. Bank has developed and adopted
various operating instruction and manuals for best practices. Key Performance Indicator
(KPI) has been adopted to assess the employee performance.

Bank gas adopted a unique code of conduct and ethical guidelines for the employees.
Bank has given stress to the compliance of the rules, regulations and guidelines of
Securities and Exchange Commission and Bangladesh Bank. The external auditors
were given absolute freedom in the process of audit and to verify the compliance, risk
management and preparation of accounts as per IAS and BAS norms. Credit rating
agency was engaged for rating the bank every year in order to give a fair view of the
investors.
Weakness

1.Lack of Adequate Employees: Number of employees is less than the volume

Of works, which creates problem for prompt service.

2.Lack of up to date equipment’s: The City Bank Limited has lack of modern
technologies and equipment’s like online facilities, fax, cash card and credit card
system.

(a)Challenges and Prospect

City Bank is a string and effective player in the financial system. Banks exposure in core
business of corporate and retail sectors with wide range of products is expanding. Its
strategy will remain to grow in areas of core competence and expand activities in SME
and Micro Finance to the development of national economy. Further to enhance foreign
exchange reserve Bank will continue their efforts in mobilization of wage earners
remittances with a meaningful presence in the overseas. Side by side, the Bank
remains focused on quality business and exercise best practices to achieve satisfactory
growth on the upcoming years.

OPPORTUNITIES
The City Bank Ltd. Can pursue a diversification strategy in expanding its current line of
business. The management can consider options of starting client service in its
merchant banking division. There are several opportunities for The City Bank Ltd. To
expand its product line. In this competitive environment The City Bank Ltd. Must expand
its product line to enhance its Sustainable Competitive Advantage (SCA). As a part of
its product line proliferation, The City Bank Ltd. Can concentrate more on SME & Agro
based industrial loan because these two sectors have huge potential. If The City Bank
Ltd. Can grab this opportunity then it will be better for the bank.

The City Bank Ltd. Should move towards the real time on line banking operations. It is
high time that they should go for this because the foreign banks as well as some local
banks are already in to the total on line banking operations.

Threats

There are a lot of competitors in banking sector of Bangladesh. So it’s a great threat for
them. There are not only the conventional banks but also some other Commercial &
Islamic Banks in the market as their competitors. Conventional banks are always trying
to understand people that interest and dividend are the same through various seminar,
symposiums and publicity.

Despite of marvellous popular support, spectacular success in terms of mobilization of

deposit and distribution of profit. Small Industries Bank in Bangladesh yet to achieve the
designed level of success due to the absence of appropriate legal framework. All the
Government approved securities in Bangladesh are interest bearing.
Strategies:

Corporate strategies :

1. Growth strategy:

In 2021, the City Bank efforts were still heavily focused on maintaining continuity and
accelerating the economic pace. They re-evaluated their operations and concentrated
on striking a balance between maintaining worker safety and enhancing the reliability of
their services as requested by their clients.

The City Bank concentrates are following categories of banking services

• General Banking

• Retail Banking

• Loans & Advance

• SME

• Corporate International Trade & Foreign Exchange

• Export

• Import

• Remittance

• Online Banking Service

• Debit Card & Duel Currency Credit Card Facilities

 2. Stability strategy :

Over the course of the year, stability and ESG remained hot topics. Since Bangladesh is
a signatory to important climate agreements, such the Paris Accord, and is thus
required to uphold its climate control pledges, climate action, sustainability, and the
SDGs were key topics of conversation in the public sphere. The City Bank, as a bank
and as members of the financial services industry, believe that green finance and green
capital have enormous potential as a way to secure economic growth that is compatible
with environmental preservation. Additionally, corporations and institutions who show a
commitment to improving their operations and the economy through a positive attitude
are mobilizing billions of dollars in global capital.

3. Renewal strategy ;

After the unprecedented challenges of 2020, the banking industry successfully adjusted
to the new climate in 2021, which was a good year for them as they proceeded to
implement their strategies and found new growth prospects. They changed their
disbursement approach for all the branches of their bank, including Retail, Small and
Microfinance, SME, Cards, Commercial and Corporate, and OBU, which witnessed a
good expansion in their loan book, with the help of strong liquidity and they extensive
national footprint.

Competitive strategy :

1.Cost leadership strategy :

In order to meet their customers’ evolving needs, The City Bank works to be the most
technologically inclusive bank in Bangladesh. One of our top strategic goals is to foster
an omni-channel approach by combining technology with the strength of the City Bank
ecosystem to produce a distribution model that is both low-cost and highly effective.

2.Differentiation strategy:

The easiest method to manage our finances is with Citytouch – Digital Banking Service
from City Bank. The service transfers all the benefits of branch banking to our internet-
enabled devices’ screens. Through Citytouch, we may now purchase goods from top
shops, book flights, pay credit card and school payments, pay your mobile phone bill,
transfer money, and keep track of my accounts (current, savings, fixed deposit, and
loan), among other things. Never has banking been this easy.

Users will be able to request and receive loans instantaneously through bKash thanks
to a ground breaking digital loan that City Bank and bKash have started offering. With
the blessing of Bangladesh Bank, this initiative has been introduced for the first time in
Bangladesh. Its goal is to expand financial access for the unbanked population and help
the country move toward financial inclusion.

Functional management

Financial Division:

• Financial planning, budget preparation and monitoring

• Payment of salary

• Controlling inter-branch transaction

• Disbursement of bills

• Preparation of financial reports and annual reports

• Preparation/Review of returns and statements

• Maintenance of Provident Fund, Gratuity , Superannuation Fund

Human Resource Division (HRD):

• Recruiting

• Training and development

• Compensation, employee benefit, leave and services rules program.

• Placement and performance appraisal of employees

• Preparing related reports

• Reporting to the executive committee

• Promotional campaign & press release

Management action:

Given the improvement in the overall economic climate, City Bank’s mid-term forecast is
upbeat. They will continue to make steady investments in their digital banking systems
while also maintaining their capital and liquidity strength to take part in the growing
process. As economic activity picks up and mobility returns to normal, they will also
safeguard their CASA balances to maintain NIM. Additionally, they are concentrating on
raising production and efficiency levels while preserving cost restraint. They pledge to
accept calls from people with good credit, and they also guarantee that their consumers
will make an informed decision regarding their credit demands.
Recommendations:

(a) Performance Evaluation

Top management of The City Bank Limited should conduct a comprehensive study or
survey on the branch performance, its management performance and their motivation
as well. The marketing department should think freshly about their objectives and
practices. As a developing private bank The City Bank Limited should allow their client
satisfied with their services.

(b) Training

From my observation, the front desk people need more training to handle people
smartly. In clearing section, there are not any trained employee and work delayed with
mistakes often, even there are not any specific document regarding clearing vouchers.
So, training is mandatory for this department for overall benefit and smart work along
with client satisfaction.

(c) Salary and Motivation

Motivation is the key to employee satisfaction and employees are satisfied productivity
will increase, profit of the organization also increased rapidly with customer satisfaction.
When I have worked in cash section I have seen that employees of this section gets
minimal salary compared to other sections of the bank and they are not satisfied with
their salary, so management should think of them.
Conclusion:

The City Bank Limited is one of the fastest growing banks among all the private
commercial banks in Bangladesh. This bank constantly looks for ways & means to
improve productivity by rendering to its customers in order to remain competitive in the
market.

The City Bank Limited plays a significant role in various fields in the economy such as
industry, trade & commerce, transportation, deposit mobilization etc. It is playing a
crucial role in human resource development and in creating new employment
opportunities. It is also undertaking various welfare activities for the betterment of the
society, in this context the bank has established The City Bank Foundation.

The reliability of the customers on The City Bank Limited is increasing promptly day by
day. The overall performance of The City Bank Limited solid revenue growth together
with strict discipline on expenses. The bank constantly reviews its systems, policies,
process and prices of its products and services with the changing marketing reality.
References:

1. Annual Report of The City Bank Ltd. (2018-2021)

2. Web side of The City Bank

www.thecitybankltd.bd

3. Different document of The City Bank

Limited, Shadarghat Branch

4. Search engine: Google