University of Liberal Arts Bangladesh

Department of Business Administration

Internship Report On

Borrowers Perception On Prime Bank Limited

Submitted to: SUMAIYA ZAMAN Lecturer, Business Administration

Submitted by: SAMEER ANSARY ID: 081011072 BUS-499 Major: Finance; Minor: Computer Science and Engineering Department of Business Studies (BBA)
Date of Submission: August 21, 2011

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LETTER OF TRANSMITTAL

August 21, 2011 Sumaiya Zaman Lecturer Business Administration University of Liberal Arts Bangladesh Subject: Submission of Internship Report of Prime Bank Limited. Dear Sir, It is my pleasure to submit my Internship Report on Borrowers Perception on Prime Bank Limited as a requirement of Internship course, BUS-499. I tried my best to gather relevant information for constructing a complete report as outlined. The preparations of this report enable me to a great extent to complete my theoretical knowledge with practical analysis. I would like to express my profound gratitude for your kind and conscious guidance in preparing my report in the giving time. Thank you very much for your heartiest co-operation. Yours sincerely,

(Sameer Ansary) BBA 081thBatch, Major-Finance ID no-081011072, Department of Business Department, University of Liberal Arts Bangladesh

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ACKNOWLEDEGEMENT First of all I would like to express my gratitude to omnipotent and almighty Allah, whose invisible guidance helped me to complete this report. Although, time was very limited for getting the sufficient knowledge about all of banking service, but the short experience that I gathered as an internee, in Prime Bank Limited on Sat-Masjid Road Branch an asset for all the time to come in my life. I take the opportunity to express my deep sense of gratitude of my reverend supervisor, Sumaiya Zaman (Lecturer, Business Administration, University of Liberal Arts Bangladesh) for his invaluable suggestions and guidance during the study period that has greatly inspired me in preparing this report successfully. I am highly thankful to all of the employees of Prime Bank Limited, Sat-Masjid Road Branch for their support that helped me to prepare this report. All of them are very frank and helpful exception. I couldnt think a single moment that I am a student of internee in that bank they help me as his employee. Besides I have special appreciation towards following resource person for helping me: Md. Omar Kabir, Vice President. Md. Aminur Rahman Akanda, Assistant Vice President and Manager Operation. Shah Mohammad Mohsin, First Assistant Vice President. Md. Masud Uddin Ahmed, First Assistant Vice President. Md. Rofiqul Islam, Executive Officer. Sharmin Rahman, Executive Officer. Md. Eshtiak Masud, Executive Officer. Faria Azad, Executive Officer. A.S.M Hasan Sohel, Executive Officer. Md. Naiamul Farid, Senior Officer. Jahir Uddin, Senior Officer. Md. Golam Mostofa, Officer. Md. Saiduzzaman Khan, Management Trainee. Sree Jyotish Chandra, Management Trainee. Sharmin Akter, Trainee Assist. Finally, I want to express my deep gratitude to my parents and other family members and also remember my friends whose enormous helps assist me to complete my report.

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TABLE OF CONTENTS Serial No. Particulars Abstract CHAPTER: 01 INTRODUCTION 1. 1 1.2 1.3 1.4 2.1 2.2 2.3 2.3.1 2.4 2.5 2.6 2.7 3.1 4.1 4.2 5.1 5.1.1 5.1.2 5.1.3 5.2 5.2.1 5.2.1.1 5.2.1.2 5.2.1.3 5.2.1.4 5.2.1.5 5.2.1.6 5.2.1.7 Statement of the Research Problem Objective of the Study Methodology of the Study Scope of the Study CHAPTER: 02 COMPANY PROFILE Background of the Prime Bank Limited Principle Activities of the Bank Management Hierarchy Sat Masjid Road Branchs Management Hierarchy Network of the Bank Raito Analysis of the Prime Bank Limited and their Competitors AB Bank Limited SWOT Analysis Loan Calculator of Prime Bank Limited CHAPTER: 03 FINDINGS OF THE STUDY Findings in Different Situations CHAPTER: 04 SUMMARY ANDRECOMMENDATION Summary of the Study Recommendations CHAPTER: 05 BIBLIOGRAPHY AND APPENDIX Bibliography Books and Publications Websites Questioners Appendix Ratio Analysis Information of Prime Bank Limited and AB Bank Limited Performance at a Glance (Prime Bank Limited) Statement of Comprehensive Income (Prime Bank Limited) Statement of Cash Flow (Prime Bank Limited) Statement of Financial Position (Prime Bank Limited) Financial Highlights (Prime Bank Limited) Graphical Presentation (Prime Bank Limited) Financial Information (AB Bank Limited) Page No. 1 2-6 3-4 4 5-6 6 7-24 8 8-14 15 16 17 18-22 23 24 25-28 25-28 29-31 30 30-31 32-51 33-36 33 33 34-36 37-51 37 37 38 39 40 41-43 44-45 46-51

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ABSTRACT
This report is an outcome of the internship program under the BBA program requirement in the Prime Bank Limited. During my internship in the organization I have gathered different information which was necessary for preparing this report. This report is written on the Borrowers Perception on Prime Bank Limited. In chapter 1, I have introduced the topic, along with the objective of the report, which was mainly understand how to gain real life exposure in the banking sector and to get a clear idea about Borrowers Perception. I have also mentioned the method followed to gather the information and the sources of data. The company profile is stated in the chapter 2. It includes the background of the bank, with principle activities, management and branchs hierarchy, branch network, ratio analysis of the Prime Bank Limited and their competitors AB Bank Limited, SWOT analysis and Loan calculator of Prime Bank Limited. Chapter 3 starts with findings in different situations about Borrowers Perception on Prime Bank Limited. In this chapter all the survey questions are graphically presented. Chapter 4 draws summary of this report. I have included my observation, some loop wholes and Prime Bank and the effects of these. Then I have tried to draw out some solution to those problems and some recommendation. Finally chapter 5 has the tables and graphs and other information in the appendix that might be needed for the better understanding of the report. A borrower is a person or institution who has been approved to receive a loan and is then obligated to repay it and any additional fees according to the loan terms. Borrowers perception is so much important for any bank because if they know the perception level of their borrowers then they can do all the loan able works easily. Thats why in this report I have tried to explain and highlight this issue precisely.

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CHAPTER 01: INTRODUCTION

INTRODON

Learning Objectives:
1. Statement of the Research Problem 2. Objective of the Study 3. Methodology of the Study 4. Scope of the study

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1.1

Statement of the Research Problem:

In general sense we mean Bank as a financial institution that deals with money. There are different types of banks like Central bank, Commercial bank, Savings bank, Investment bank, Merchant bank, Co-operative bank etc. But when we use the term bank it generally means commercial bank that collects the deposit from surplus unit of the society and then lends the deposits to the deficit units. Now-a days banking sector is modernizing and expanding its hand in different financial events every day. At the same time the banking process is becoming faster, easier and is becoming wider. In order to survive in the competitive field of the banking sector all organizations are looking for better service opportunities to provide their fellow clients. So it has become essential for every person to have some idea on the bank and banking procedure. Internship program has been included to BBA curriculum for producing talent, up-to-date and smart, efficient executives. Internship means gaining supervised experience. Internship program offers an opportunity to know the environment of a particular organization. Theoretical knowledge does not make a person perfect. To implement the academic knowledge, practical knowledge related to it is important. A perfect coordination between theory and practice is important in the context of modern business world. In order to resolve the dichotomy between theory and practice, the different university arranged Internship Program as a partial completion of BBA program. This program is necessary for every student to complete his or her academic degree. Internship program brings student closer to the business theory and practical and thereby help them to substantiate their knowledge so that they can prepare themselves to start a successful career. As a participant in this, I was place under Prime Bank Limited, Sat Masjid Road Branch, Dhanmondi, which is well reputed for trade and commerce in Dhaka city. In preparing the report, I have incorporated the suggestion from correspondents to mention here. This report is mainly emphasis on Borrowers Perception on in Prime Bank Limited -comparative study with leading private Banks. Financial services are a difficult business, subject to many pressures. The regulatory environment, risk and capital management, reporting and compliance are all major issues demanding the attention of board and executive alike. On top of this there is still a business to run, with customers to be won or retained, costs to be managed and shareholder value to be created, all in an increasingly dynamic and

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international environment, where failure on any of these counts can swiftly lead to the attention of predators, both domestic and international. Important to the success of a financial service organization in this complex environment is the key relationship between the revenue generating client base and the cost of the infrastructure required to service, satisfy and delight them. The cost-income ratio remains one of the most closely watched and targeted numbers in any modern bank. On the revenue side growth in customer numbers, customer retention, share of wallet, and cross sale ratio are all key metrics. While on the cost side the variables are around staff numbers, branch numbers, the range and variety of channels to the customer and the location of transaction processing, as off shoring develops as a means to both manage cost and, in some cases, improve customer service. What then, are some of the most important elements of Borrowers Perception in the current market and what has been going right and wrong for the banks? This report is an important part of every student course curriculum and the gaining of his practical training. It ensures the practical knowledge on a specific matter, which is assigned to the students by their respective teachers or otherwise known as supervisor. The Title of my report is Borrowers Perception on Prime Bank Limited This report is assigned by the HR department of Prime Bank Limited and approved by the Supervisor of Finance Department, Faculty of USB, and University of Liberal Arts Bangladesh.

1.2 Objective of the study:

The ultimate objective of the study is to gain real life exposure in the banking sector and to get a clear idea about Borrowers Perception on Prime bank Limited. The objectives of the study are: Building habit of working and learning responsibility on the duration of internee. To present an overview of PBL. To appraise the task which are directly linked with Borrowers. To identify problems of Borrowers awareness. Identify the solution of these problems and provide some recommendation.

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1.3 Methodology of the Study:

The nature of this report is descriptive, so instead of doing any survey or using sampling method, observation method is used to complete this qualitative research. Most of the necessary information has been collected by face to face interview. Population: The study has been conducted on the Borrowers Perception on Prime Bank Limited. But because of branch specific constraints it was conducted on the clients of credit section. Sampling Unit: Only branches of Prime Bank in DCC area was under consideration for the sampling unit for the study, i.e., Sat-Masjid Road Branch, Karwanbazar Branch, Bangshal Branch, Asad Gate Branch, Panthapath Branch. Sampling Technique: Random sampling is used for the purpose of the study.

Sources of Data:
The report is based on both primary and secondary data sources. Interviewing the managers and officers of the bank, talking to the customers has provided the primary data. Furthermore, different publications of the bank, annual reports, and the bank website were the secondary sources of data. Primary Sources: The primary data had been collected from various sources. The different sources were: Distribute questionnaire among selected customer to receive feedback. Face to face conversation with the employees. By personal interviewing and interacting customers at Prime Bank Limited. Observing various organizational procedures. Secondary Sources: From prior research report. From different books and periodicals related to the banking sector. From internet.

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 Annual report of Prime Bank Ltd. Published Booklet of Prime Bank Ltd. Various published documents.

Data Collecting Technique:

Fort the purpose of the study two methods of techniques used: Observation Interview Observation: Observation method is often used to complete this qualitative research because it is very difficult to provide any specific example from any file about certain document, as the matter is very sensitive for the client as well as for the bank. Interview: Primarily some data are collected from face-to-face interview of different employees of Prime Bank Limited at Sat Masjid Road Branch. By face to face conversation with the Borrowers and by personal interviewing it is easy to collect the accurate information for the study. For the purpose of this interview, customers were asked to fill up a questionnaire. Based on their answer, it is easy to justify the Borrowers Perception on Prime Bank Limited.

1.4 Scope of the Study:

The scope of this report is limited to the overall description of the

Bank/Organization (Only Dhaka Branches Banks), its services and its position in the industry and its marketing strategies. The scope of the study is limited to organizational setup, functions and performances.

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CHAPTER 02: COMPANY PROFILE

INTRODUCTIO N

Learning Objectives:
1. Background of Prime Bank Limited 2. Principle activities of the Bank 3. Management Hierarchy 4. Network of the Bank 5. Ratio Analysis of Prime Bank Limited and their Competitors AB Bank Limited 6. SWOT Analysis 7. Loan Calculator of Prime Bank Limited

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2.1Background of Prime Bank Limited:

During the booming years of the banking industry of Bangladesh, a group of highly skilled local entrepreneurs came up with an idea to float a commercial bank with a different outlook. The idea was to build a banking organization with excellence, competence and consistent delivery of reliable service with superior customer satisfaction. The outcome of this thinking was the Prime Bank Limited, commenced its business on April 17, 1995. Since the beginning the bank is being managed by a team of professionals, with dedication and sincerity. Their experience and hard work has taken the bank in the leading position. The bank is constantly focused towards the understanding and predicting customers needs and meeting them. It is giving a tough competition to other banks in case of performance and customer satisfactions. The bank offers almost all sorts of commercial banking services within the framework of Banking Company Act, and the rules and regulations lay down by the Bangladesh Bank. These services include corporate Banking, Retail Banking, and Consumer Banking etc. Within this short time the bank has already claimed a position among the top ranked banks in our country through ensuring high profile management, experienced, dedicated and skilled employees, and a whole lot of hard works. It has adopted the CAMEL rating, BASEL II and all other international requirements. It is always responding to technological enhancements and developments. The introduction of ATM in March 2008 and Internet Banking in 2009 ushered a new era and prime Bank is now wed poised towards the expansion of alternative delivery across Bangladesh. Prime Bank is one of the most renowned names among the well performing banks in the banking industry and it is continuously working hard to hold its position in the market as the leader through providing top class services.

2.2Principle Activities of the Bank:

The principle activities of the bank are banking and related businesses. These activities include: taking deposit, cash withdrawal, extending credit, organizing syndicate deals, retail, small and medium enterprises, trade financing and project financing, lease and hire purchase etc. The followings can be stated principle activities of the bank:

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1. Extending credit: Providing credit to the clients of the bank is one of the major activities of the bank. Loans and credits are available under different heads, like: commercial loan, loan syndication, retail loan, project finance etc. 2. Import & Export business: The bank is also efficient in import and export business. The-growth rate of import business is 5% and growth in export business is 11%. The main items of this business are: leather, readymade garments, shrimp, machineries, materials etc. 3. Retail Banking: A bank like Prime Bank Limited that goes with superior brand equity and a unique brand tag line a bank with a difference, putting supreme emphasis on retail business has an untapped potential to generate value. This potential of retail banking can be traced while thinking about the Lines of business in an innovative way. An effort by retail banking to explore the untapped may help induce those, who wait to save money to buy their desired life-style at a future time, to come and avail the retail banking services. Retail banking can play a very significant role in this respect by expanding the principles of opportunity cost, marginal or incremental and time value of money against the utility of the desired house-holds. A consumer, buying a retail product through a retail focused branch may have a small business by himself which may grow big over time and become a good corporate customer or such a consumer who is happy with a banks services, may be working in a corporate entity, may influence to take financial services from the bank. Thus retail banking can enter deep into the heart of the consumers which is the essential in building long term customer relationship. 4. Credit Card: Very stiff competition prevails in credit card market. Many players have entered the market and competition is growing. Prime Bank Limited started credit card operation in 1999 by introducing Master Card and is now a principal member of both worldwide accepted plastic money network i.e. MasterCard and VISA thus positioned itself with strong footing within the industry. It extends various services to the credit card customers viz, issuance of supplementary card, free insurance coverage, longer interest free period, etc 5. SME Financing: Despite growing focus about small and medium enterprises in Bangladesh and consequent policy efforts in these directions, limited access to financing still forms the crux of the problem of this sector. The overriding vision of PBL is to offer

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congenial lending products and services so that SMEs can aspire to opportunities of growth and wealth creation. 6. Financing women entrepreneurs under SME: Another notable idea in SME financing is the development of women entrepreneurs. Bangladesh Bank has earmarked 10 percent of SME related fund for women entrepreneurs. The bank has designed a separate product Anchor for women entrepreneurs. In the new framework of SME, PBL is giving top priority in developing and harnessing women entrepreneurs. 7. Islamic Banking: Prime Bank started its operations in the year 1995 as a bank with a difference, blending its conventional banking system with that of Islamic Banking operations based on Shariah principles. Five of the branches of the bank provide Islamic Banking operations to serve the increasing demand of customers for Islamic Banking products and services. Objectives of launching Islamic Banking Operations in Prime Bank are as follows: To cater to the needs of customers who want to have services in Islamic Modes; To introduce the partnership concept of business operations; To arrange for ensuring justice in distribution system use of funds; To do other acts ancillary to the establishment of exploitation free society.

8. Merchant Banking: Merchant Banking and Investment Division (MB1D) passed another very successful year since it started its journey four years ago. During 2009, the countrys capital market witnessed many significant events ranging from breaking many records to policy changes. And as our market matured, we were able to achieve significant profit growth and also contribute to the development of the market. In 2009, as per the boards advice, MBID concentrated on providing unparallel portfolio management services to our customers. The number of customers went beyond 2,000 with a portfolio size of around 1k. 11,000 million and the bank contributed to an average of 10 percent to 12 percent of daily Dhaka Stock Exchange (DSE) turnover. During the year through providing portfolio management services and by realizing the gain from banks own investment MBID made an operating profit of Tk. 920.30 million. We also successfully launched the operation of MBID Mirpur Branch in August 2009 as Uttara and Sylhet Branch waits to start operation very soon.

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9. Deposits: The deposits balance of PBL reached the level of Tk.106.96 billion during 2009 from Tk. 88.02 billion of previous years. The growth rate is 21.51 percent. This was possible due to superior customer service delivery at the branch level, expansion of branch network to rural areas where foreign remittance flow is significant as well as liability campaign by retail liability team for mobilization of no cost and low cost deposits.

Source: Annual Report 2009 of Prime Bank Limited

Expansion of branches at rural areas has provided the lower income group an access to modern banking system and prompt receipt of remittances. PBL is offering 18 types of deposits products for the customers. These include: Contributory Savings Schemes (CSS): Under this scheme Minimum size of the monthly installment is Tk.500.00 and multiples of Tk.1000.00. Maximum installment size shall be 25000.00 for five year period. Lump sum amount shall be paid after maturity or monthly pension shall be paid for the next 5 years according to size of deposit. Lackhopati Deposit Scheme: Under this scheme size of the monthly installments are Tk.250.00, Tk.500.0O, Tk1285.00, Tk.2400.0O depositor will receive Tk.1,00,000.00 after a number of period depending on installment size .Higher the installment size lower will be the maturity period. Prime Millionaire Scheme: This scheme is similar as Lackhopati deposit scheme only the installment amounts is larger and at maturity depositor will get Tk.10 lac. Education Savings Scheme (ESS): Under this scheme parents can save for their childrens education by paying a certain amount of monthly installment and Lump sum amount shall be paid after maturity. Monthly Benefit Deposit Scheme (MBDS): Under this scheme customer can deposit

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a fixed amount of money for five years .The amount has to be 100,000 or multiple of 100,000 he / she will receive 900 per month as interest on every lac during those five years. Double Benefit Deposit Scheme (DBS): Under this scheme a customer can keep a fixed amount of money for six year end of the maturity period the amount will become double .The amount has to be multiple of 25000. Fixed Deposit Receipt Scheme (FDR): Under this scheme customer can devote a fixed amount of money for one month, three months, six months or twelve months for interest rate of 7.5%, 11% or 11.5%. Current Account: Current Account is a non interest bearing checkable deposit (Demand Deposit) which allows the owner of the bank accounts to write checks to third parties. Savings account: Savings Account is an interest bearing checkable deposit (Negotiable order of withdrawal) which allows the owner of the bank accounts to write checks to third parties.

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10. Customer Care: PBLs firm commitment to excellent customer service delivery has resulted to remarkable progress in all areas of operation during 2009. PBL adopted various payment and transaction products and services for smooth payments and transactions for the customers. These include both traditional and modern products. The bank is now fully online. Traditional products are used since inceptions and still dominate the lion share of the payment and transaction of the country as the NCBs are still lagging behind modern technology application. As such the traditional products remained main product for semi urban and rural areas where PBL operates. With the liberalization of banking and financial industry and increasing customer knowledge and sophistication competitive pricing of products is no longer sufficient in capturing large market share. New product development, know your customer program and redesign the existing products were the strategies adopted by the bank to serve the customers differently from the competitors. The continuous improvement in delivery of products and services, reduction of turnaround time for loan processing, on-line deposits and remittance payment has made the key differentiation for winning the customer satisfaction. The bank introduced ATM facilities for the customers in 2008. There are also arrangements with another bank for sharing their ATM booths which increased the coverage of the Bank over 600 ATMs located at different areas of the country. The bank has introduced internet banking in 2009 and has planned to add Debit card, SMS Banking and Kiosk to its products and services baskets. 11. Research & Development for customer Satisfaction: In this competitive business environment, Research & Development (R&D) activities are thought to enrich the bank with new and improved products, process and business avenues. In that pursuit, PBLs R&D activities are focusing on three core areas: marketing, operation and business policies. R&D has conducted number of market surveys and studies on business related issues which have helped the management to take decisions more appropriately and provide services to customers more efficiently. Some of the initiatives which have assisted the Management are highlighted below: Employee Attitude Study Business Feasibility Study on Setting up Branch, SME Service Center, ATM. Branch & SME Service Center Expansion Program 2010

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 Product Development Study: Abash- a House Building 12. Loan product for construction of Semi-Pucca House Project on Premium Banking Review of Customer Service Campaign 2010 Guideline for Promoting Prime Bank Credit Card Report on Commodity Markets on Eight Commodities (Monthly) Publication of In Focus- A Monthly Newsletter of R&D Division (Monthly) Concept Note on Ensuring Service Quality Concept Note on Ensuring Service Quality Mystery Shopping Survey on Call Centre. Offshore Banking: PBL is catering the banking requirement of non-resident

customers through 2 Offshore Banking Units (OBU) located in Dhaka Export Processing Zone and Chittagong Export Processing Zone. Offshore banking acts as a unique solution for Banks across the globe to carry out international banking business involving Non Resident foreign currency denominated assets and liabilities taking the advantages of low or nonexistent taxes/ levies and higher return on investment. Prime Bank has one more OBU at Adamjee EPZ which is yet to start its Offshore Banking operation. In 2009, Off-shore banking has made a cumulative profit of USD 0.56 million as against cumulative profit of USD 0.14 million in 2008.

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2.3 Management Hierarchy:

Source: Head office of Prime Bank Limited

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2.3.1 Sat Masjid Road Branchs Management Hierarchy:

Source: Sat Masjid Branch, Prime Bank Limited

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2.4 Network of the Bank:

The first branch opened by Prime Bank is the Head Office in Motijheel, Dhaka. It was opened at the time the bank started its business in April 17, 1995. From then Prime Bank has continued its journey and emerged its network by opening branches in major districts of our country. The total number of branches now is 97. Following chart shown (All the branches are not here):

Source: Head Office of Prime Bank Limited

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2.5 Ratio Analysis of Prime Bank Limited and their competitors AB Bank:

Cost of Fund: Cost of fund refers to how much cost is incurred to borrow fund i.e. capital. According to the ratios based on different years, it is evident that borrowing money is costlier to AB Bank, as opposed to Prime Bank. Thus I have found the remarkable competitive advantage of Prime Bank Limited over its competitor considering the cost of funds.

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Return on Investment (ROI): ROI refers to the amount of gain from investment. The 2010 figures show that AB bank is well ahead in terms of ROI compared to Prime Bank. The ROI of Prime Bank on 2010 was 13.02% whereas ROI of AB Bank was 32.72%, this shows AB Bank is maintaining a better position than Prime Bank in terms of ROI. But it is to be noted that a huge portion of profit gained by AB Bank through Merchant Banking, which is based on volatile capital market.

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Return on Asset (ROA): ROA depicts the efficiency of a company in managing fixed assets. The AB Bank has a higher ROA as opposed to Prime Bank; therefore it proves that AB Bank manages its assets with distinctive efficiency compared to Prime Bank.

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Net Profit Margin: The net profit margin of Prime bank is higher than that of AB Bank which means, Prime Bank is efficient in managing cost against AB bank, when it comes to comparison. The overall profit position of Prime Bank Limited is so far better than that of AB Bank.

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Capital Adequacy Ratio: Bank maintains a minimum Capital Adequacy Ratio (CAR) of at least 9 percent of Risk Weighted Assets (RWA) with core capital (Tier-1) not less than 5 percent of RWA. Capital requirements are assessed for credit, market and operational risks. The Banks capital adequacy ratio is periodically assessed and reviewed by the ALCO and reported to Head Office. Prime Bank has consolidated capital adequacy ratio of 11.69%, while AB Bank has CAR 9.91% which is lower than that of Prime Bank Limited. Thus, Prime Bank is maintaining better capital structure than that of AB Bank.

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2.6 SWOT Analysis of Prime Bank Limited:

Every organization is composed of some internal strengths and weaknesses and also has some external opportunities and threats in its whole life cycle. The following will briefly introduce Prime Banks internal strengths and weaknesses, and external opportunities and threats as I have explored in the three months (approx.). Strengths: Favorable reputation. Provides its customers excellent and consistent quality in every service. Quality service with relatively lower price. Friendly interactive and informal working environment.

Weaknesses: Pay structure have a big discrimination within officers and executives. The employees are burdened with extra workloads and works late hours. Pay order processing is not satisfactory. Incoming Mail processing is slow. Opportunities: Can recruit experienced, efficient and knowledgeable work force as it offers good working environment. The Bank will provide ATM cards to all of its clients to avail 24 hour modern banking facility. More commercial branches. The Bank has already introduced on line modern facilities to its customer. Threats: Upcoming private local banks. Comparatively high salary margin. Challenge of new entries. Immerge of the multinational banks and their rapid expansion.

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2.7 Loan Calculator of Prime Bank Limited:

Following calculator is easy to calculate all the loan products.

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CHAPTER 03: FINDINGS OF THE STUDY

INTRODUCTIO INTRODUCTIO N N

1. Findings in Different Situations

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3.1 Findings in Different Situations:

3.1.1 Loan Packages of Prime Bank Limited: In this analysis several people strongly
agrees that they know the loan products of Prime Bank Limited. Most of the people agree with this product. So it can be said that the loan product of Prime Bank Limited is satisfactory. People have trust on loan products of Prime Bank Limited.

3.1.2 Repayment of Loan by Prime Bank Limited Borrowers: Here tenure to pay
the loan and the installment amount is relevant. Most of the borrower agrees with the tenure so people have trust on this issue. At the same time most of the borrower paying their loan installments regularly. Bank takes regular action in case of loan. Borrower thinks that loan maturity period is perfect. They strongly agree with this.

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3.1.3 Terms and Conditions of Loan Packages: After surveying among the borrowers,
we can say that their collateral requirements are reasonable. In some cases their position is neutral. Borrowers opine neutrally about the loan covenants of Prime Bank Limited.

3.1.4 Comparison with Competitors: After surveying among the borrowers, it can be
said that the loan packages of Prime Bank Limited are better than any other bank. Most of the borrowers agree with this opinion. Besides this, most of the borrowers agree that loans from non banks are more attractive. Borrowers also agree that average margin of loan is reasonable. At the same time Banks margin on riskier loans is reasonable.

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3.1.5 Borrowers Satisfaction level: After surveying, we can say that borrowers get
quick response from Prime Bank Limited. Most of the borrowers agree that their behavior is friendly. Most of the borrowers are happy with the services of Prime Bank Limited. At the same time most of the borrowers show satisfaction over the loan services forms Prime Bank Limited.

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CHAPTER 04: SUMMARY AND RECOMMENDATION

INTRODUCTIO N

Learning Objectives:
1. 2. Summary of the study Recommendations

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4.1 Summary of the Study:

Prime Bank is an emerging bank. The bank has only completed a decade of banking services. At the initial stage of business, every institution has to go through the difficult path of survival. To achieve the confidence of the borrowers, the bank must execute some improvements in its marketing and operational areas Prime Bank Ltd should try to win borrowers faith by providing them efficient and dependable services, credit facility and updating with user friendly modern technologies. The bank should redesign all sorts of banking procedures to be more user-friendly, attractive and impressive. Prime Bank limited started with a vision to be the most efficient financial intermediary in the country and it believes that the day is not far off when it will reach its desired goal. It looks forward to a new horizon with a distinctive mission to become a highly competitive modern and transparent institution comparable to any of its kind at home and abroad. Finally it can be said that, Borrowers Perception should be more for emerging markets, up warding growth of national income and overall improvement in the standard of living.

4.2 Recommendations:
I had the practical exposure in Prime Bank Ltd. Sat Masjid Road, Dhanmondi Branch for just three months, with my little experience in the bank in comparison with vast and complex banking system, it is very difficult for me to recommend. I have observed some shortcomings regarding operational and other aspects of their banking. On the basis of my close observation I would like to propose the following recommendations Improve office atmosphere to give customer friendly feeling. Provide intimate attention to your customers needs. Customers convenience will be of Top priority. Fast Service Policy should be introduced. So that everybody get faster service. The bank should try to arrange more training programs for their officials. Quality training will help the official to enrich them with more recent knowledge of banking and improve their skill. Over burden of work and ill defined assignment unable the employee to discharge their duties in cool manner. It is also creates a hazardous situation in

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the work process. So all the employees should be assigned with proper and specific assignment. Time consumed in servicing customers is minimized. Develop communication skills. Help new entrepreneurs to formulate business plans.

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CHAPTER 05: BIBLIOGRAPHY AND APPENDIX

Learning Objectives:
1. Bibliography 2. Appendix

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5.1 Bibliography:
5.1.1 Books and publications:
1. Ahmed Nasiruddin. (1989) , Banking and Finance Compendium: 1st edition . Standard printing and packages: Dhaka. 2. Star Business News . (2008). Prime Bank Launches Training program. 3. Prospectus of prime bank ltd. 4. Bangladesh Institute of Bank Management, Appraisal of Customers Services of Scheduled Banks of Bangladesh. 5. Banking theory and practice by Shekhar.

5.1.2 Websites:
1. www.primebank.com.bd 2. www.abbank.com.bd 3. www.wikipedia.com

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5.1.3 Questioners:

Borrowers Perception on Prime Bank Limited

As an intern student of the University of Liberal Arts Bangladesh [ULAB], I have initiated a research study on the Borrowers Perception on Prime Bank Limited. I want to assess the Loan satisfaction level of customer. Your response & co-operation will enable me to identify the major factors behind customer Loan satisfaction in Prime Bank Limited. Thank you in advance for your cordial participation. IF ASKED: This survey will take approximately 10 - 15 minutes. You have been selected at random, and I guarantee your identity will be held in confidential and the answers you provide with will remain totally anonymous. You can refuse to answer any of the questions. The results will be used for academic purpose only. 1. In which Branch do you have an account? Name of the Branch: ____________________________ 2. In which area is it located? Area:_________________________________________ 3. Type of account Current Fixed Savings

4. How many times do you go to the bank in a week? 2-3 times 4-6 times 7-8 times

5. How do you know about this bank? TV Relatives Newspaper Others Internet Radio

You will now be given a series of statements regarding your evaluation of Customer Satisfaction. Please indicate the extent to which you agree or disagree with the statement using a 7 point scale where 7 indicates your strong agreement, 6 & 5 indicates normally agreement, 4 & 3 indicates neutral, 2 indicates normally disagreement & 1 indicates your strong disagreement. You may select any number between 1 & 7 to

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indicate the extent of your agreement. You may also choose DK [Dont Know] or N/A [Not applicable]. There is no right or wrong answer.

Please answer all the questions considering the prime bank limited that you chose in

Question 6
Sl No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Statement Strongly agree You know about the Loan Products of 7 6 PBL You have availed of any Loan from 7 6 PBL It (Loan) took to procedure long time 7 6 Charges/Processing fee is reasonable 7 6 Your tenure to pay the loan and the 7 6 installment amount is well You are paying the loan installment 7 6 regularly If anyone cannot pay installment 7 6 regularly then actions have been taken by the bank Collateral requirements are 7 6 reasonable Loan covenants 7 6 PBL loan packages are better than 7 6 from other banks PBL loans are more attractive from 7 6 non-banks Loan Maturity is perfect 7 6 Nature of Loan is adequately 7 6 mentioned in the product list of PBL PBL has competitive advantage over 7 6 its competitors You are satisfied with their service of 7 6 each desk PBL has always notified any change 7 6 of terms and conditions or even interest rates If there is any objection, you get 7 6 quick response from the PBL Behavior of the employees are 7 6 friendly You are satisfied with the loan from 7 6 PBL 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 Strongly Disagree 2 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 DK N/A

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Age: 18-23 Gender: Male Married: Yes

24-35 Female No

36-50

50+

Education: Primary Bachelors Occupation: Student Occupation sector: Govt.

Secondary Masters Service Private

Higher Secondary PHD Business NGO Others Others

Which residential area do you live in ______________________________________________________________________ ______________________________________________________________________ __________ Whats your opinion to improve the services of Prime Bank? If any ______________________________________________________________________ ______________________________________________________________________ ________________

Thank you for your kind co-operation and sacrifice

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5.2 Appendix:
5.2.1 Ratio analysis information of Prime Bank Limited and AB Bank:

Prime Bank Limited

5.2.1.1 Performance at a Glance:

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5.2.1.2 Statement of Comprehensive Income:

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5.2.1.3 Statement of Cash Flow:

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5.2.1.4 Statement of Financial Position:

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5.2.1.5 Financial Highlights:

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5.2.1.6 Graphical Presentation:

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AB Bank Limited
5.2.1.7 Financial Information (2010 and 2009):

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Financial Information (2008 and 2007):

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