Customer satisfaction of depositors of jamuna bank

i

CUSTOMER SATISFACTION

OF DEPOSITORS

OF JAMUNA BANK KONABARI

BRANCH

BASED ON A 2016 STUDY

OF TOTAL DEPOSIT CUSTOMERS

ii

IUBAT— International University of Business Agriculture and Technology

Practicum Report

on

Customer satisfaction of depositors of Jamuna Bank Konabari

Branch—based on a 2016 study of total deposit customers

Course Name: Practium (BUS 490)

Prepared for

Prof Dr M Alimullah Miyan

Chair, CBA Vice-Chancellor & Founder


Prepared by

Sushanta Saha

ID #12102343

Program: BBA

College of Business Administration – CBA


15 December 2016

iii

Acknowledgment

At the beginning, I would like to express my gratitude and offer my prayer to the Almighty for

allowing me to complete this report.

I would like to express sincere gratitude to my academic supervisor, Mr. Abdullah Al Yousuf

Khan, Assistant Professor of IUBAT, without whose help and guidance I would be unable to

complete this report.

I would like to express my gratitude to those who helped me all the way through to complete my

internship report on ‗Customer Satisfaction of Depositors of Jamuna Bank Konabari Branch —

based on a 2016 Study of Total Deposit Customers‘

I would express my special thanks to my parents whose inspirations have enabled me to

complete this report. I am thankful to Jamuna Bank for giving me the opportunity to work with

its experienced staffs. I would like to express my gratitude to all the staffs of JBL Konabari

Branch who helped me to collect and get necessary data to prepare this report. I would like to

express gratitude Mr. Md. Nurul Huda, The manager of the Branch and Mr. Md. Afzal

Hossain , second manager of JBL Konabari Branch who helped me in my research work by

giving me valuable suggestions. I am thankful to the veteran staffs of the branch for their

guidance in work. It was a memorable experience for me to work with all of them. I am thankful

to Mr. Ahshanul Haque, first executive officer in JBL Konabari branch who provided me

valuable internal data of the Bank. Finally, I express my sincere thanks to my friends who

inspired in different ways to complete the report and the course as well.

Sushanta Saha

ID # 12102343

Program: BBA


IUBAT- International University of Business Agriculture and Technology

iv

Letter of Transmittal

15 December 2016

Prof Dr M Alimullah Miyan

Chair, CBA Vice-Chancellor & Founder


4 Embankment Drive Road, Sector-10 (Off Dhaka-Ashulia Road)

Uttara Model Town, Dhaka-1230.Bangladesh

Subject: Submission of the practicum report.

Dear Sir,

Here in the report on ―Customer satisfaction of depositors of Jamuna Bank Konabari Branch—

based on a 2016 study of total deposit customers‖ prepared as per the requirement for completion

of BBA program.

My study is based on a survey of 45 deposit account holders of the Branch prepared with an

objective to find out why this branch is losing depositors and are the deposit holders are happy

with the bank‘s service.

I sincerely hope that this report will meet your expectations. If you have any queries regarding

this report, please feel free to inform me.

Sincerely

---------------------------

Sushanta Saha

ID # 12102343,

Program: BBA,

College of Business Administration – CBA, IUBAT

v

Certificate of Practicum Institute

v

vi

Student Declaration

I declare that all works submitted for assessment in this subject is my own work and does not

involve plagiarism or teamwork. The report titled ―Customer Satisfaction of Depositors of

Jamuna Bank Konabari Branch —based on a 2016 Study of Total Deposit Customers‘ is an

original work done by me under the supervision of Mr. Abdullah Al Yousuf Khan.

No part of this report has been previously submitted to any other University

College/Institution/Organization for any academic degree/ certificate/ diploma.

-----------------------

Sushanta Saha

ID # 12102343

Program: BBA



vii

Supervisor’s Declarations

To Whom It May Concern

This is to certify that Sushanta Saha, ID# 12102343, student of BBA program of IUBAT

University has successfully completed the internship report on ―Customer satisfaction of

depositors of Jamuna Bank Konabari Branch—based on a 2016 study of total deposit

customers‖ under my supervision and guidance. During the period, he worked three months in

Jamuna Bank Limited, Konabari Branch in Gazipur from 9 October 2016 to 28 December

2016.

This report is submitted as a partial requirement for the fulfillment of BBA program at IUBAT –

International University of Business Agriculture and Technology. Hereby I accept the report

as successful completion of internship. No part of this report has been submitted for any other

degree, diploma or fellowship and the work has not been published is any paper, journal or

magazine. During the period he was sincere proactive and attentive to his work. I wish him every

success in his life.

Abdullah Al Yousuf Khan

Assistant Professor

College of Business Administration


viii

Executive Summary

Jamuna Bank, Konabari Branch in Gazipur district was the 16 number branches that bank

opened in 2004. After JBL many banks opened their branch in Konabari. Currently the branch is

losing its deposit account holders especially the Current Account and Savings deposit account

holders. This report recommends following topics for the bank to keep the customers satisfied:

Providing credit cards to potential depositors.

Making loan processing flexible and minimizing duration of loan getting.

Making mobile banking more customers oriented to compete with others and advertising

in TV, social media about the products.

Advertise the products in electronic media such as TV advertisement.

The study found by the survey of 45 depositors of JBL shows that they are happy with the

modern banking facilities that the Bank offers. Around 66% customers said that the branch has

modern banking facilities such as ATMs, Online banking, Mobile banking to deposit account

holders. However, they are not happy with the conservative policy of the Bank on credit card

offering. As in the service area, local banks are doing aggressive marketing so to make the

depositors happy JBL need to be flexible on credit card offering.

Observation of the depositors of the branch discovered that the mobile banking of the bank is not

much popular among the customers. So other banks substitute product is that caused the branch

to lose depositors. On the other hand, an average number of respondents are happy with the

service quality of the branch. Job change, relocation, economic condition of clients such as

reduced income, unemployment are the significant reasons behind customers leaving the branch.

In addition, Standard garment‘s fire incident caused the branch to lose depositors as the branch

had a good number of depositors from that garment.

The study found that the competing banks are doing aggressive marketing in the area. So

customers can become unhappy by the offering of other banks. JBL loan processing is also very

strict said majority of the respondents.

ix

Table of Content

PREFATORY PART

Particulars Page No.

Title Fly i

Title page ii

Acknowledgment iii

Letter of Transmittal iv

Certificate of Practicum Institute v

Student Declaration vi

Supervisor’s Declarations vii

Executive Summary viii

Table of Content ix

PART 1

INTRODUCTORY PART


INTRODUCTORY PART 1

1.1 Introduction to the Report 2

1.2 Research aims 3

1.3 Research objectives 3

1.4 Scopes of the Report 4

1.5 Limitations of the Report 4

PART 2

ORGANIZATIONAL PART


ORGANIZATIONAL PART 5

x

2.1 Background of Jamuna Bank Limited 6

2.2 Corporate short profile of Jamuna Bank Limited 6

2.3 Mission of JBL 7

2.4 Vision of JBL 7

2.5 Objectives of Jamuna Bank 8

2.6 Strategic Priority 8

2.7 Values 9

2.8 Corporate Governance of JBL 10

2.8.1 Board of Directors of Jamuna Bank 10

2.8.2 Top Management Team of JBL 13

2.8.3 Shariah Supervisory Committee of JBL 14

2.8.4 Organogram of JBL 15

2.9 SWOT Analysis of JBL 16

2.10 External Environment Analysis 19

2.10.1 PEST Analysis 19

2.10.2 Porters 5 Forces analysis 20

2.10.3 External Environment Analysis Summery 24

2.11 Internal Environment Analysis of JBL 25

2.12 SFAS Matrix 26

2.13 TOWS Matrix of JBL 27

2.14 Corporate Social responsibility 28

PART 3

TOPIC PART

Chapters Particulars Page No.

TOPIC PART 29

Chapter 01

3.1 Marketing Mix of JBL 30

3.1.1 Products 30

3.1.2 Price 34

xi

3.1.3 Promotion 35

3.1.4 Place 35

Chapter 02

3.2.1 Customer analysis — deposit and current account

holders

36

Chapter 03

3.3.1 Factors related to customer satisfaction — why

customers are leaving the branch

42

PART 4

ACTUAL TASK PART


ACTUAL TASK PART 51

4.1 Internship Experience 52

4.2 Brief information of JBL Konabari Branch 52

4.3 Internship Timeline 53

4.4 Primary learning 55

4.5 Secondary learning 58

PART 5

PROJECT PART


PROJECT PART 59

5.1 Problem Statement 60

5.2 Background of the Problem 60

5.3 Project Timeline 60

5.4 Budget information 61

5.5 Research Methodology 61

5.5.1 Research approach 61

5.5.2 Research Philosophy 61

5.5.3 Type of Research 61

xii

REFERENCES & APPENDICES

References 77

Appendices 78

Abbreviations 79

LIST OF THE FIGURES


Figure 2.1 Organogram of JBL 15

Figure 2.2 SWOT Analysis of JBL 16

Figure 2.3 Porter's Five Forces Analysis 21

Figure 2.4 TOWS Matrix of JBL 27

Figure 3.1 Number of Active, Dormant, and Closed Deposit Accounts in Jamuna

Bank, Konabari Branch ( Upto October 30, 2016)

36

Figure 3.2 Percentage of Dormant Savings Accounts 37

Figure 3.3 Percentage of Dormant Current Accounts 38

Figure 3.4 Percentage of Total Dormant Deposit Accounts 39

5.5.4 Method of data collection 61

5.5.5 Population and Sampling Methods 62

5.5.6 Research limitations 62

5.6 Hypothesis Development and Test 62

5.6.1 Hypothesis Test: Z-Test

5.6.2 Hypothesis Scale 63

5.6.3 Hypothesis Testing 64

5.7 Data Analysis and Interpretation 65

5.8 Findings 73

5.9 Recommendations 75

5.10 Conclusion 76

xiii

Figure 3.5 Total Deposit Accounts Opened in Jamuna Bank, Konabari Branch

(From 2004 - October, 2016)

40

Figure 3.6 Number of Deposit Accounts Opened in JBL Konabari branch (from

2006-2016)

41

Figure 3.7 Interest Rate on DPS provided by different Banks in Konabari 44

Figure 3.8 Service Area Covered by the Banks in Konabari, Gazipur 47

Figure 3.9 Opening Year of Branch of different Banks' in Konabari, Gazipur 47

Figure 3.10 Total Distance of Konabari Area 48

Figure:3.11 Location of The Branches of Different Banks in Konabari, Gazipur 50

Figure 4.1 My Internship Activities in JBL Konabari Branch 53

Figure 4.2 Internship activities chart 54

Figure 5.1 Project Timeline (Gantt chart) 61

Figure 5.2 Percentage of responses on H1 65



Figure5.5 Percentage of responses on H4 68





LIST OF THE TABLES


Table 2.1 Corporate Short Profile of Jamuna Bank Limited 6

Table 2.2 Top Management Team of JBL 13

Table 2.3 Shariah Supervisory Committee of JBL 14

Table 2.4 EFAS Table (External Factor Analysis Summery) of JBL 24

Table 2.5 IFAS Table (Internal Factor Analysis Summery) of JBL 25

Table 2.6 SFAS Matrix of JBL (Strategic Factor Analysis Summary) 26

xiv

Table 3.1 Service Charge 34

Table 3.2 Total Number of Branches Opened by Jamuna Bank in Bangladesh 35

Table 3.3 List of Interest Rate on Major Deposit Products of Different Banks in

Konabari, Gazipur

43

Table 3.4 Service Charge 45

Table 3.5 List of The Banks and their Opening Year of Branch in Konabari,

Gazipur

46

Table 4.1 Address of JBL Konabari Branch 52

Table 4.2 Internship Work Activities 53

Table 4.3 Name and number of accounts I helped customers to open 56

Table 5.1 Project timeline activities 60

Table 5.2 Budget information 61

Table 5.3 Hypothesis scale 63

Table 5.4 Summary of the responses of deposit account holders of JBL Konabari

Branch

64

1

Part 1

Introductory Part

2

1.1 Introduction to the Report

It is always easy to make loyal customers by making happy existing customers than new one.

Jamuna Bank being a third generation bank in Bangladesh has passed its‘ successful journey

in last 15 years.

Jamuna Bank is a private commercial bank and offers wide range of products and services to

its customers. In the last 15 years, the bank is operating successfully in Bangladesh. The

Konabari branch of Jamuna Bank Limited is a deposits account based branch. The branch

mostly focuses on retail banking. However, the Branch also offers other products and service

such as corporate and SME products.

A recent performance evaluation of the branch shows an alarming number of customers are

leaving the bank, which amounted, as large as 48% of the total depositors who have had

various deposit accounts. So it appears that depositors are not happy. So this study will try to

find the reasons behind customers leaving the branch.

This report is prepared as a part of practicum program completion. I have done internship in

Jamuna Bank, Konabari Branch, in Gazipur. An internship program is generally designed for

students to grow professionally, experience the real corporate working environment.

Moreover, it is a pathway for students to practice professionalism before entering into a

serious job. It helps us to build our self-confidence & interpersonal skills, which are

important for job market.

The banking sector is one of the major service sectors in Bangladesh. There are several types

of banks, which differs in the number of services they provide. Although some of the

differences between these types of bank have lessened as they begin to expand the range of

products and service they offer, there are still key distinguishing features. Commercial banks,

which dominate this industry, offer a full range of services for individuals, business, and

government.

In the modern society, commercial banks occupy a position of economic importance. They

play a significant role to meet up the needs of the society such as large-scale production,

3

capital formation, industrialization, growth of trade etc. Jamuna Bank established in 2001 in

Bangladesh, and this bank is contributing to the country in last 15 years of service. The bank

offers different types of products to the depositors and is successfully operating in the

country.

1.2 Research aims

The aim of this research is to fulfill the requirement of completion of BBA program. In

addition, this study will try to identify why customers are leaving the JBL, Konabari Branch.

Moreover, to determine customers satisfaction factors of the branch.

1.3 Research objectives

The broad objective and specific objectives of this research are as follows

Broad Objective

To identify the reasons why deposit account holders are discontinuing or leaving JBL

Konabari branch.

Specific Objectives

The specific objectives of this research are going to be as follows:

1. To identify the number of total deposit accounts since the start of the business i.e.

2004.

2. To identify the types of various deposit accounts opened by the depositors.

3. To determine whether customers are satisfied or not.

4. To gain practical knowledge of corporate workplace.

5. To fulfill the requirement of completion of BBA program.

6. To identify the factors related to customers satisfaction of this particular branch.

4

1.4 Scopes of the Report

This report is limited to the study of deposit account holders of JBL Konabari Branch. All the

data about the deposit accounts were collected from the Jamuna Bank, Konabari branch. So

the scope of this research is limited to the branch. I have completed three months internship

the branch so scope of this study is JBL Konabari Branch.

1.5 Limitations of the Report

To prepare this report the duration of three months was a limited time. As there is privacy

concern of the branch of JBL, some data could not be collected. There was limitation to visit

other branch of the bank to see actual scenario over there.

5

Part 2

Organizational Part

6

2.1 Background of Jamuna Bank Limited

Jamuna Bank Limited is a private commercial bank in Bangladesh. Jamuna Bank started its

operation from in Bangladesh in 2001. The Bank provides all types of support to trade,

commerce, industry and overall business of the country Jamuna Bank Ltd., the only Bengali

named 3rd generation private commercial bank, was established by a group of local

entrepreneurs who are well reputed in the field of trade, commerce, industry and business of

the country.

The Bank offers both conventional and Islamic banking through designated branches. The

Bank is being managed and operated by a group of highly educated and professional team

with diversified experience in finance and banking. The Management of the bank constantly

focuses on understanding and anticipating customers' needs. Since the need of customers is

changing day by day with the changes of time, the bank endeavors its best to device strategies

and introduce new products to cope with the change. Jamuna Bank Ltd. has already achieved

tremendous progress within its past 15 years of operation. The bank has already built up

reputation as one of quality service providers of the country.

At present the Bank has real-time Online banking branches (of both Urban and Rural areas)

network throughout the country having smart IT-backbone. Besides traditional delivery

points, the bank has ATMs of its own, sharing with other partner banks and consortium

throughout the country.

Jamuna bank has branches in most of the major cities of Bangladesh. There are total 108

branches opened by Jamuna Bank.

2.2 Corporate short profile of Jamuna Bank Limited

Table 2.1

Corporate Short Profile of Jamuna Bank Limited

7

Name of the Bank Jamuna Bank Limited.

Date of Commencement In 2001 in Dhaka

Registered Office Hadi Mansion, 2 Dilkusha C/A, Dhaka-1000

Industry Banking

Type Private Commercial Bank in Bangladesh.

Number of branch 108 as of October 2016

Employee Around 2000

Automated Teller Machine

(ATM )

169 ATMs in the countrywide in the year 2016

Corporate Slogan ―Your Partner for Growth.‖

Logo

SWIFT Code JAMUBDDH

Phone 9570912

Fax 880 (2) 9565762

E-mail [email protected]

Website www.jamunabankbd.com

Source: As per Annual report 2015, Jamuna Bank Ltd.

2.3 Mission of JBL

The Bank is committed for satisfying diverse needs of its customers through an array of

products at a competitive price by using appropriate technology and providing timely service

so that a sustainable growth, reasonable return and contribution to the development of the

country can be ensured with a motivated and professional work force.

2.4 Vision of JBL

To become a leading banking institution and play a significant role in the development of the

country.

http://www.jamunabankbd.com/

8

2.5 Objectives of Jamuna Bank

To earn and maintain CAMEL Rating 'Strong'

To establish relationship banking and improve service quality through development of

Strategic Marketing Plans.

To remain one of the best banks in Bangladesh in terms of profitability and assets

quality.

To introduce fully automated systems through integration of information technology.

To ensure an adequate rate of return on investment.

To keep risk position at an acceptable range (including any off balance sheet risk).

To maintain adequate liquidity to meet maturing obligations and commitments.

To maintain a healthy growth of business with desired image.

To maintain adequate control systems and transparency in procedures.

To develop and retain a quality work-force through an effective human Resources

Management System.

To ensure optimum utilization of all available resources.

To pursue an effective system of management by ensuring compliance to ethical

norms, transparency and accountability at all levels.

2.6 Strategic Priority

Delivering customer‘ desired products and services to create true customers‘ value.

Focusing on export of both traditional and nontraditional items and remittance to

ensure a comfortable position of foreign exchange all the time.

Doing businesses that have higher risk adjusted return.

Focusing on maintenance of assets quality rather than its aggressive expansion.

Changing the deposit mix thereby reduce the cost of deposits.

Ensuring all modern alternative delivery channels for easy access to our services by

customers.

Taking banking to the doorstep of our target group.

Restructuring existing products and introducing new products to meet the demand of

9

time and the target group.

Entering into new avenues of business to increase profitability.

Bringing unbanked people into our delivery channels.

Increasing fee based service/activities where costly capital is not changed.

Ensuring organizational efficiency by continuous improvement of human capital and

motivation level, dissemination of information and thereby ensuring a sustainable

growth of the organization.

Maximizing shareholders‘ value at all times alongside ensuring a sustainable growth

of the organization.

Pursuing CSR activities for our continued support to future generation, distressed

people and for advancement of underprivileged people of the country.

Establishing the brand image as a growth supportive and pro-customers‘ bank.

Strengthening risk management techniques and ensuring compliance culture.

Remaining cautious about environment and supporting for maintaining a green and

clean soil.

2.7 Values

Customer Focus

Integrity

Quality

Teamwork

Respect for the individual

Harmony

Fairness

Courtesy

Commitment

Respectable Citizenship

Business Ethics

Unique Culture

10

2.8 Corporate Governance of JBL

Corporate governance is a fundamental part of the culture and business practice of Jamuna

Bank Limited (JBL). The company is directed and controlled by the board of directors. The

primary role of JBL corporate governance is played by the board of directors. It is the board

that formulates the vision, mission, objectives and strategic goals. The board‘s dynamism,

guidance, stewardship, policy making are all that drives the company towards sustainable

growth. The Management‘s role is to execute those policies in a professional, proactive and at

the same time, ethical, appropriate manner.

2.8.1 Board of Directors of Jamuna Bank

Mr. Gazi Golam Murtoza

(Chairman)

Joined: (April 27, 2016- present)

Engr. A. K. M. Mosharraf

Hussain

(Director)

Engr. Md. Atiqur Rahman

(Director)

Mr. Golam Dastagir Gazi, Bir

Protik

(Director)

11

Mr. Fazlur Rahman

(Director)

Al-Haj Nur Mohammed

(Director)

Mr. Md. Tajul Islam

(Director)

Mr. Sakhawat, Abu Khair

Mohammad

(Director)

Mr. Md. Belal Hossain

(Director)

Mr. Md. Mahmudul Hoque

(Director)

Mr. Shaheen Mahmud

(Director)

Mr. Md. Sirajul Islam

Varosha

(Director)

Mr. Kanutosh Majumder

(Director)

12

Mr. Md. Ismail Hossain

Siraji

(Director)

Mrs. Tasmin Mahmud

(Director)

Mr. Md. Hasan

(Director)

Mr. Redwan-ul Karim

Ansari

(Director)

Mr. Narayan Chandra

Saha

(Independent Director)

Mr. Chowdhury Mohammad

Mohsin


Mr. Md. Rafiqul Islam


Mr. Shafiqul Alam

(Managing Director)

13

2.8.2 Top Management Team of JBL

The Top Management team of JBL is working to ensure sustainable growth of the company

by making strategic decisions. The senior management team members are as follows:

Table 2.2

Top Management Team of JBL

SL No. Name

Photo

1 Shafiqul Alam

(Managing Director)

(January, 2013- present)

2 Mirza Elias Uddin Ahmed

(Additional Managing Director)

(Joined JBL in 2001-present)

3 A. K. M. Saifuddin Ahamed

(Deputy Managing Director)

(Joined JBL in 2001-present)

Source: As per website of JBL, 2016

14

2.8.3 Shariah Supervisory Committee of JBL

Jamuna Bank offers Islamic Banking too. At present, it has 2 Islamic banking branches i.e.

Nayabazar Branch, Dhaka and Jubilee Road Branch, Chittagong. To guide and oversee its

Islamic banking operation, Jamuna Bank has a Shariah Supervisory Committee with the

following persons who are renowned scholars for Islamic banking and economics:

Table 2.3

Shariah Supervisory Committee of JBL

Sl.

No. Name Status

1. Prof. Mawlana Md. Salahuddin

Khatib, Baitul Mokarram National Mosque, Dhaka. Chairman

2.

M. Azizul Haque

Founder Managing Director of Islami Bank Bangladesh Ltd, Consultant

of Islami Banking

Member

3. Mawlana Abdur Razzak

Principal, Madinatul Ulum Model Institute Boys Kamil Madrasah, Dhaka Member

4.

Hafez Mawlana Mufti Ruhul Amin

Principal, Jamea Islamia Darul Ulum Khademul Islam Gawhardanga

Madrasah, Tungipara, Gopalgonj

Member

5. Prof. Shahidul Islam Barakati

Islami Scholar Member

6. Al-Hazz Mowlana Mohammad Sadequl Islam

Imam & Khatib, Mohakhali DOHS Jame Mosjid, Dhaka Cantonment Member

7. Mr. Shafiqul Alam

Managing Director, Jamuna Bank Ltd

Member(Ex-

officio)

Source: As per website of JBL, 2016

15

2.8.4 Organogram of JBL

Figure 2.1

Organogram of JBL

Source: Annual report 2015, Jamuna Bank Limited

16

2.9 SWOT Analysis of JBL

SWOT stand for Strengths, Weaknesses, Opportunities, and Threats. By SWOT analysis, we

can look at these internal and external factors of a particular company.

Figure 2.2

SWOT Analysis of JBL

Source: Author work

Strengths of Jamuna Bank:

Experienced top management:

Positive Negative

Inte

rnal

Strengths

1. Experienced top management

2. Wide range of products and services

3. Cooperative work of branch

employees

4. Strong branch network and ATMs

Weaknesses

1. Absence of sufficient marketing

activities

2. Less number of Branches than its‘

competitors

3. Lack of modern banking software

4. Less number of ATMs then other

Banks

5. Lack of adequate training of

employee

Exte

rnal

Opportunities

1. Open new branches in all the potential

area

2. Implement modern banking software

3. Introducing special corporate scheme

4. Creation of strong brand image

5. Expansion of mobile banking

Threats

1. Strong competition

2. Government rules and regulations

3. Substitute products of other Banks

4. Poor political stability

17

Jamuna Bank has a top management, which is well experienced in banking industry. They

have worked not only in banking sector but also in different kinds of businesses. So,

experienced top management is the major strength of JBL.

Wide range of products and services:

JBL is serving with their wide range of products and services in Bangladesh. The Bank has

retail products, corporate products, different ATM cards, SME products. All these products

have various facilities for different customers. This wide range of products is the strengths of

JBL.

Cooperative work of branch employees:

All the branches of JBL are networked with each other. In addition, the employees in the

branch work in cooperation among themselves.

Strong branch network and ATMs:

JBL has 108 branches in Bangladesh in different division. All these branches are networked

with each other. Customers of JBL can deposit and withdraw money from any of these

branches. Also the branches help each other in need. JBL has more the 150 ATMs. So, strong

branch network and ATMs are the strength of JBL.

Weaknesses of Jamuna Bank:

Absence of sufficient marketing activities:

Currently JBL is not doing sufficient marketing activities. Other banks are doing aggressive

marketing such as the Premier Bank and BRAC Bank.

Less number of Branches than its’ competitors:

Competitors have more branches than JBL. In addition, JBL does not have branches in all the

districts of Bangladesh.

Lack of modern banking software:

The employees of JBL Konabari branch has said that JBL needs to implement new and

modern banking software so that they can do a task faster than now. In addition, they said

18

that they would be able to respond to customers more quickly if JBL implement modern

banking software such as CBS core banking software.

Less number of ATMs then other Banks:

In today‘s banking industry ATMs number and good quality of service has an important role

in growth. JBL has less number of ATMs than other Banks.

Lack of adequate training, job facilities of employee

New employees are not getting enough training. The accounts officer in JBL Konabari branch

has said that some experienced employees are leaving Jamuna Bank because other Banks are

giving them more job facilities and salary. Also JBL‘s new employees are not receiving

enough said the front desk officer.

Opportunities of Jamuna Bank:

Open new branches in all the potential area:

Jamuna Bank can open new branches in all districts of Bangladesh. The Bank has 108

branches in the country but it does not exist in all districts. The population and demand for

banking service is growing so it is a great opportunity for JBL to open new branch in all the

potential area in the country.

Implement modern banking software:

JBL can install or implement modern banking software to increase their performance.

Introducing special corporate scheme:

JBL Konabari Branch is deposit based. There are many potential corporate customers in

Konabari, Gazipur. It is an opportunity for the Bank to attract these customers by introducing

special corporate scheme.

Creation of strong brand image:

Band image is how customers think about the brand. JBL can attract more customers by

providing more valued products and services. And make more loyal customers.

19

Expansion of mobile banking

Mobile banking is becoming more attractive to the local customers in Bangladesh. Butch-

Bangla Bank, BRAC Bank is leading the mobile banking sector in the country. JBL already

has mobile banking or financing service. The Bank can put more emphasis in this sector as

mobile banking is substitute for traditional banking. While working in JBL Konabari branch I

have seen that customer do not come to bank as they can fulfill their need using Bkash.

Threats of Jamuna Bank:

Strong competition

There is strong or intense competition exists in the banking industry in Bangladesh. BRAC

Bank, Premier Bank, Dhaka Bank, Southeast Bank all these banks are the competitors of JBL

and they are doing aggressive marketing.

Government rules and regulations

Bangladesh Bank is the central authority in the Banking industry in the country. And the

banks need to follow the rules and regulations of the government.

Substitute products of other Banks

Bkash, Rocket are the major substitute products of other Bank. It is a threat for JBL.

Poor political stability

Bangladesh is suffering from poor stability for a long time. Hartal, unsatisfactory election all

these affect the day to day life and businesses like Bank.

2.10 External Environment Analysis

2.10.1 PEST Analysis

Political–legal forces

Stability of government: The political situation is not stable.

20

Bangladesh Bank’s policy: The policies the central bank influences and regulates

the bank also tax is another important factor.

Tax laws: Tax for export and import is getting higher and it does not give the pre

alarm for changing.

Economic forces

The GDP of Bangladesh is increasing.

The overall income of the people of Bangladesh is increasing.

More area is being developed than previous because of industrialization.

The competition in the banking sector is very strong.

Although the unemployment rate is high but overall, economy of Bangladesh is

increasing.

Technological forces

Innovation of Automated Teller Machine (ATM) has transformed and increased

the performance of banking industry.

New technology based products are being introduced to customers

People are becoming interesting in online banking.

Uses ATM debit card and credit card is increasing.

Hacking in the ATM booths of different banks occurred in 2016.

Socio cultural forces

Bangladesh has a population over 160 million.

Unemployment rate is increasing

Now the women are also entering into job sector, becoming self-employed

along with men. So, JBL need to target both equally.

The culture of Bangladesh is open-minded and it is mixed culture

2.10.2 Porters 5 Forces analysis

Michael E. Porter argues that the stronger each of these forces the more limited is the ability

of established companies to raise prices and earn greater profits. Thus, a strong competitive

21

force can be regarded as a threat since it depresses profit. Similarly, a weak competitive force

can be viewed as opportunity, for it allows a company to earn greater profits.

Figure 2.3

Porter's Five Forces Analysis

Source: Author work based on industry analysis

The threat of new entry:

New Entrants are companies that are not currently competing in an industry but have the

potential to do so if they choose. The banking industry in our country is still in its growth

stage. To enter into the industry it requires high amount of money in addition in our country

about 56 banks having more than 2500 branches (approximate). Usually the existing

companies try to deter potential competitors by setting certain entry barriers. Barriers to entry

are factors that make it costly for companies to enter an industry. Government licensing and

Bangladesh Bank regulations are also another factor that is affecting the risk of new entrance.

So the risk of new entry is low in banking industry.

The bargaining power of suppliers:

Rivalry among the existing competitors

(High)

Threat of new entry (Low)

Bargaining power of suppliers

(Medium)

Threat of substitute products

(Medium)

Bargaining power of buyers (Low)

22

Capital is the primary resource for banks and is the major suppliers of capital in the industry

are:

Bangladesh Bank

Loans from other financial institutions.

By utilizing these suppliers, the bank can be sure that they have the necessary resources

required to service their customers' borrowing needs while maintaining enough capital to

meet withdrawal expectations. The economic condition is also another factor that is affecting

the bargaining power of supplier. The power of the suppliers is largely based on the market,

so bargaining power of suppliers‘ medium.

The bargaining power of buyers:

When customers are concentrated or large or buy the products services in volume, their

bargaining power represents a major force affecting the intensity of competition in an

industry. Rival firms may offer extended warranties or special services to gain customer

loyalty whenever the bargaining power of consumers is extensive. Bargaining power of

consumers also is higher when the products being purchased are standard or undifferentiated.

Bargaining power of the buyer can be viewed as a competitive threat when they are in a

position to demand lower prices from the company or when they are in a position to demand

better service that can increase operating costs. On the other hand, when buyers are weak, a

company can raise its prices and earn greater profits. For the banking, industry buyer means

customers who take loan from the banks. In banking industry, the bargaining power of buyer

is not high, means low.

The threat of substitute products:

A substitute product can be regarded as something that meets the same need of another

product. Some banking financial institutions are providing substitute products i.e. Bkash,

Rocket etc. Other non-banking financial businesses are providing loans to the customers.

There is another substitute product like different organization of rural area called ―Grammen

Somite‖ etc. Therefore, the threat of substitute products is Medium.

Rivalry among existing competitors:

23

The intensity of rivalry among competing firms tends to increase as the number of

competitors increases. The banking industry in Bangladesh is highly competitive as there are

many banks operating here. As the emergence of many new commercial banks has taken

place, therefore the banks are trying to get the competitive advantage over their rival banks.

By introducing new schemes and attracting customers through promotional activities, the

banks are having a close and interactive competition in the industry. Therefore, the degree of

rivalry in banking sector is high.

24

2.10.3 External Environment Analysis Summery

Table 2.4

EFAS Table (External Factor Analysis Summery) of JBL

External factors Weight Rating Weighted

Score

Comments

Opportunities

Open new branches in all the

potential area

.20 3 .60 JBL does not have

branches in all the districts

of Bangladesh

Implement modern banking

software

.10 3 .30 Implement modern

banking software will

increase performance

Introducing special corporate

scheme

.10 1 .10 Attract new customers

Creation of strong brand image .05 3 .15 JBL need more loyal

customers to grow

Expansion of mobile banking .05 3 .15 JBL can expand its‘

Mobile Banking

Threats

Strong competition .20 4 .80 Competition is very

intense

Government rules and

regulations

.05 3 .15

Substitute products of other

Banks

.15 4 .60 Bkash, Rocket are the

major substitute products

of other Bank

Poor political stability

.10 3 .30

Total Scores 1.00 3.15

Source: Author work based on external factors

25

2.11 Internal Environment Analysis of JBL

Table 2.5

IFAS Table (Internal Factor Analysis Summery) of JBL

Internal factors Weight Rating Weighted

Score

Comments

Strengths

Experienced top management .15 4 .60 Key to success

Wide range of products and

services

.10 2 .20

Cooperative work of branch

employees

.15 2 .30 Helpful for JBL

Strong branch network and ATMs .10 3 .30

Weaknesses

Absence of sufficient marketing

activities

.20 4

.80 JBL is lacking of enough

marketing activities

Less number of branches than its‘

competitors

.05 3 .15

Lack of modern banking software .10 3 .30 Response time is long

Less number of ATMs then other

Banks

.05 2 .10

Lack of adequate training, job

facilities of employee

.10 3 .30 Experienced employees are

leaving Jamuna Bank

because other Banks are

giving them more job

facilities


Source: Author work based on internal factors

26

2.12 SFAS Matrix

Table 2.6

SFAS Matrix of JBL (Strategic Factor Analysis Summary)

Strategic Factors Weight Rating Weighted

Score

Duration

Comments

SH

OR

T

INT

ER

ME

DIA

TE

LO

NG

Experienced top

management (S)

.15 4 .60 √ Key to success

Cooperative work of

branch employees (S)

.10 3.2 .32 √ Helpful for the bank

Absence of sufficient

marketing activities (W)

.15 3.5 .525 √ Customers are

switching

Lack of modern banking

software (W)

.10 3 .30 √ Low performance

Lack of adequate training,

job facilities of employee

(W)

.10 2 .20 √ Employees need more

facilities

Open new branches in all

the potential area (O)

.10 3 .30 √ Expand the business

Expansion of mobile

banking (O)

.10 3 .30 √

Strong competition (T) .10 2 .20 √

Substitute products of other

Banks (T)

.10 3 .30 √ Bkash, Rocket are

other bank‘s product


Source: Author work based on highest factors of internal factors and external factors

27

2.13 TOWS Matrix of JBL

Figure 2.4

TOWS Matrix of JBL

INTERNAL

FACTORS

(IFAS)

EXTERNAL

FACTORS

(EFAS)

Strengths (S)

1. Experienced top

management

2. Wide range of products and

services

3. Cooperative work of branch

employees

4. Strong branch network and

ATMs

Weaknesses (W)

1. Absence of sufficient

marketing activities

2. Less number of

Branches than its‘

competitors

3. Lack of modern

banking software

4. Less number of

ATMs then other

Banks

5. Lack of adequate

training of employee

Opportunities (O)

1. Open new branches in

all the potential area

2. Implement modern

banking software

3. Introducing special

corporate scheme

4. Creation of strong

brand image

5. Expansion of mobile

banking

SO Strategies

Utilize experienced top

management to open new

branches

Attract more corporate

customers by wide range of

products and services

WO Strategies

Increase the number of

branches and ATMs to

meet customer demand

Implementing modern

banking software

increase the performance

of response.

Threats (T)

1. Strong competition

2. Government rules and

regulations

3. Substitute products of

other Banks

4. Poor political stability

ST Strategies

Avoid the strong

competition by utilizing

wide range of products and

experienced branch

employees

WT Strategies

Expand the mobile

banking to avoid threats

of substitute products of

other bank

Source: Author work based on internal factors and external factors

28

2.14 Corporate Social responsibility

Companies‘ do corporate social responsibility to grow sustainably by contributing to the

society it works on. As Jamuna Bank‘s non-profit subsidiary, Jamuna Bank Foundation has a

unique role to play, providing leadership and making a difference for CSR in the country.

They have always focused on providing or making need based services available for our

priority target population. Now they are expanding their field of vision to include the

challenging realities of our country‘s huge unmet needs and their understanding of the

relationships among economic, national and human systems.

Since the outset of the Jamuna Bank Foundation, it undertook various CSR activities. Few

CSR activities JBL found in the annual report as follows:

Blood Donation by the employees of the Bank

Free Eye Camp program

Scholarship among the underprivileged & disabled but meritorious students

Established an Anti-Drug Care Center at

Rokeya Sharani, Mirpur, Dhaka

World Querat cornpetitors celebrating with awards every years (1st, 2nd and 3rd

position)

Distribution of Cloth (Shari) for amount of Tk. 30.00 Lac among the poor people at

Eid-ul-Fitr.

Relief for the disaster affected people

Sewing machine training centers for assisting unprivileged women of the society

Scholarship for the unprivileged &disabled but meritorious students

Free eye camps

Distribution of blankets among the cold prone destitute

Launching anti-drug movement by arranging seminar, rally, publishing stickers and

established an anti-drug care center (now at Rokeya smarani, Mirpur, Dhaka)

Holding seminar on Holy Ramadan & Qirat competition

Mobile medical Team.

Medical Team at Biswa Ejtema (Tongi)

Free Primary School for the slum dwellers at Rayerbazar, Dhaka

Relief for AILA affected Peoples

Donation to the prime Minister‘s fund for Nimtali Tragedy Tk. 50.00 Lac.

29

Part 3

Topic Part

30

3.1 Marketing Mix of JBL

The marketing mix is the set of controllable tactical marketing tools – product, price, place,

and promotion – that the firm blends to produce the response it wants in the target market.

(Kotler and Armstrong, 2010)

3.1.1 Products

Product means the totality of ‗goods and services‘ that the company offers the target

market. (Kotler and Armstrong, 2010)

JBL has different types of products. The bank has deposit products, loan products, SME, and

corporate products. The Bank also has mobile banking, SMS service, and different ATM

cards. These are the running products of JBL. Although they differ from bank to bank but

most of them have similar features in common. But JBL has differentiated its products with

wide range to target customers.

Following are the list deposit products of JBL:

Deposit Products:

Retail Banking Products of JBL:

Current Deposit (CD) Account

Short Notice Deposit (SND) Account

Savings Bank(SB) Account

Special Savings Bank Account:

Grihini Savings Bank Deposit Account

Student Savings Bank Accounts

Senior Citizen Savings Bank Accounts

Resident Foreign Currency Deposit (RFCD) Accounts

Fixed Deposit Receipts

Generally Jamuna Bank offers Fixed Deposit for 3 months, 6 months and 12 months tenors

at attractive interest rates. Other Fixed Deposit products are:

Part 03

Chapter 01

Marketing Mix

http://www.marketingteacher.com/targeting/

31

Double Growth Deposit Schemes (DGDS)

Triple Growth Deposit Schemes (TGDS)

Monthly Benefit Scheme (MBS)

Pension Deposit Scheme 2nd Choice

Education Savings Scheme 2nd Choice

Deposit Schemes

Lakhpati Deposit Scheme

Millionaire Deposit Scheme

Kotipati Deposit Scheme

Double Growth Deposit Scheme

Triple Growth Deposit Scheme

Monthly Savings Scheme

Monthly Benefit Scheme

Marriage Scheme

Pension Deposit Scheme

Educational Scheme

Rural Deposit Scheme

Mudaraba Hajj Savings Scheme

Following are the list of loan products of JBL with the current interest rate:

Agriculture 10%

Any Purpose Loan 12%

Auto loan 12.5%

Construction 12.5%

Credit Card -monthly 2.5%

Credit to NBFIs 9%

Doctors Loan 12%

Education Loan 12%

Export 7%

Forced Loan Maximum 15%

Forced Loans minimum 12%

Home Loan 11.5%

http://jamunabankbd.com/front/index












32

Import, Whole Sale & Retail Trade 13%

Lease Finance/ Hire Purchase 13%

Overdraft agains FDR/ Scheme by JBL or other bank 11%

Overseas Job Loan 12%

Personal Loan 12%

Power, Gas, Water & Sanitary 12.5%

Salary Loan 12%

SME- priority Sectors 10%

SME- with collateral 14%

SME- without collateral 15.5%

Term loan for Large & Medium Scale Industry 13%

Term loan for Small Scale Industry 13%

Transport, Storage & Communication 12.5%

Working Capital to Large & Medium Scale Industry 13%

Working Capital to Small Scale Industry 14%

Following are the list of corporate products of JBL:

Corporate Banking Products of Jamuna Bank:

Corporate Banking of Jamuna Bank Limited offers customized corporate banking solution

for both its local Business Houses as well as Multinational Companies.

Project Finance

Working Capital Finance

Cash Credit (Hypothecation)

Cash Credit (Pledge)

Import Support

Back-to-Back Letter of Credit facility

Packing Credit

Overdraft popularly known as OD

Foreign Documentary Bill Purchase (FDBP)

JBL offers to Contractors/Suppliers:
















33

Bid Bond

Overdraft (Pay Order)

Performance Guarantee (PG)

Advance Payment Guarantee

Following are the list of Islamic Banking products of JBL:

Islamic Banking Products of Jamuna Bank

Mudaraba Savings Deposits (MSD)

Mudaraba Short Notice Deposits (MSND)

Mudaraba Term Deposits (MTD)

Scheme Deposits in Islamic Banking:

Mudaraba Monthly Savings Deposit Scheme

Mudaraba Crorepoti Deposit Scheme

Mudaraba Lakhopoti Deposit Scheme

Mudaraba Double/Triple Growth Deposit Scheme

Mudaraba Education Deposit Scheme

Mudaraba Hajj Deposit Scheme

Mudaraba Marriage Deposit Scheme

Mudaraba MillionareDeposit Scheme

Mudaraba Monthly Benefit Deposit Scheme

Mudaraba Rural Deposit Scheme

Mudaraba Pension Deposit scheme

Mudaraba Car Deposit scheme

Online Banking Service

Jamuna Bank Limited offers Real-time online banking throughout its 75 branches.

By dint of our online service any customer will be able to get the following facilities:

Cash withdrawal from any branch.

Cash deposit into any branch.

Encashment of pay-order from any branch.

Statement from any branch

34

Locker Services

Jamuna Bank offers locker service to the customers. Among the numerous Branches of

Jamuna Bank, the Konabari Branch also provides locker services to its customers.

Mobile banking service of JBL:

Source: JBL annual report, 2015

3.1.2 Price

Price is what customers pay to get the product. (Kotler and Armstrong, 2010)

Account maintenance charge, and other service charge is payment of the customers. Loan

borrower pays the interest while getting the loan. Following are service charges that

customer pay to get the services:

Table 3.1

Service Charge

Nature of charges Rates

Half yearly maintenance fee

current A/C

Tk.500/-

A/C closing charges Tk. 300/-

Half yearly maintenance fee

of Savings A/C

Tk.300/-

(No maintenance fee up to Tk.5000/-)


Rent i) Small size Tk 3000/- per year.

ii) Medium size Tk 4000/- per year.

iii) Large 6000/- per year

Security money Tk 5000/-

Source: Author work Data obtained from the branch.

35

3.1.3 Promotion

Promotion is the activities that communicate with customers about the product and pursue

target customers to buy that product. JBL is not present in TV advertisement. They are

following direct selling strategy when they open any new branch. The Bank has presence in

print media. In addition, the bank has leaflet, billboard about their products.

3.1.4 Place

JBL has 108 branches in Bangladesh. The branches are placed in different area in the

country. JBL is started its journey in 2001 and in last 15 years the bank is successfully

operating in the country. Although the bank does not have branch in all the district but as I

have seen in the list of the branch opened in each year that is almost 10 in every single year.

So it indicates that JBL is trying to capture the large market in Bangladesh.

Table 3.2

Total Number of Branches Opened by Jamuna Bank in Bangladesh

Division Number of Branch

Dhaka 56

Chittagong 23

Rajshahi 17

Sylhet 5

Khulna 7

Total 108

Source: As per JBL website data, 2016

36

3.2.1 Customer analysis — deposit and current account holders

It is found that good number of customers discontinuing their accounts or service after some

time in JBL Konabari Branch. In addition, some customers are leaving the Branch and their

accounts are closed.

Source: Author calculation based on data obtained from the Branch

In the Figure 3.1, the graph shows the number of active, dormant and closed accounts for the

current, savings, monthly scheme and fixed deposits in the Branch. These are major deposit

accounts opened in JBL, Konabari Branch. Its shows that there are a significant number of

Savings and Current accounts are dormant.

0

2000

4000

6000

8000

10000

Savings Accounts Current Accounts Monthly Savings

Scheme (MSS)

Fixed Deposit

Accounts

Num

ber

of

Acc

ounts

Name of the accounts

Figure 3.1

Number of Active, Dormant, and Closed Deposit Accounts in

Jamuna Bank, Konabari Branch

( Upto October 30, 2016)

Active Dormant Closed

Part 03

Chapter 02

Customer analysis — deposit and current account holders

37

Jamuna Bank opened their branch in Konabari in 2004. Since then the Branch has introduced

different kinds of products and services to the local customers. The branch being close to the

BSCIC or industrial area has a good number of customers. While working in the front desk I

have observed that many accounts are dormant and closed. Sometimes, customers would

come to the bank to deposit money in their account and become astonished by knowing that

their account is dormant. As their account was dormant, they could not deposit or withdraw

any money from the account. Then the customers had to follow the necessary process to

reactivate their account.

Savings Accounts holders:

In figure 3.2, the graph shows the percentage of dormant of savings accounts in the branch.

Among the total active and dormant savings accounts, 58% savings accounts are active and

39% savings accounts are dormant. Many of these account holders works in different garment

factories in Konabari. Many local people have also opened savings account in the Branch.


Active Savings

Accounts

58%

Dormant Savings

Accounts

39%

Closed Savings

Accounts

3%

Figure 3.2

Percentage of Dormant Savings Accounts

38

Generally, any Current account or Savings account becomes automatically dormant if any

customer discontinue for a certain period. If any current deposit account holder discontinues

transaction for more than six months then the account automatically becomes dormant.

Similarly, if the savings account holder discontinues transactions in their account for one year

then the account becomes dormant.

Current Account holders:

In Jamuna bank, Konabari branch a good number of current accounts in dormant. After

collecting data and calculation, I have found that there are 26% Current accounts are active,

68% Current accounts are dormant, and 6% Current accounts are closed. Most of the Current

account holders come from business background. In the figure 3.3, the percentage of dormant

Current accounts indicates that the situation is alarming for the branch.


Percentage total dormant accounts in the JBL Konabari Branch:

In the figure 3.4, the graph shows that there are, total 44% deposit accounts are dormant, 4%

deposit accounts are closed, and 52% deposit accounts are active in the Branch. As this

Active Current

Accounts

26%

Dormant Current

Accounts

68%

Closed Current

Accounts

6%

Figure 3.3

Percentage of Dormant Current Accounts

39

branch is deposit based branch this percentage of dormant account is an alarming situation for

the bank.


Total deposit accounts opened in the Branch since 2004

In figure 3.5, the chart shows the total number of deposit accounts opened in the JBL

Konabari Branch. It shows a large number of accounts have been opened in the Branch.

According to the manager of JBL Konabari Branch, there are around 5-6 lacs of people living

in the service area the Branch covers. Therefore, it is a great opportunity for the bank to

attract new customers. Due to the establishment of many industrial factories, many people are

doing coming in this are for their livelihood. Also many small garments are operating in this

area. So customers are mostly from service holders and businessmen also the local people are

coming to the Bank for their need.

Operative

Accounts

52%

Dormant

Accounts

44%

Closed Accounts

4%

Figure 3.4

Percentage of Total Dormant Deposit Accounts

40


In the figure 3.6, the graph shows the number of accounts opened JBL Konabari Branch in

line chart. It shows the Monthly Savings an account (MMS) is the most opened account in the

Branch. From the year 2006-2010, the Branch opened good number of Current accounts.

Gradually the competition increased and the number of Current accounts declined.

If we see the line of monthly scheme deposit account‘s line in the graph 3.6 in 2012-2014 the

branch got good number of customers but due to increased competition the number of new

accounts is declining.

9048

1764

14013

4045

0

2000

4000

6000

8000

10000

12000

14000

16000

Savings Accounts Current Accounts Monthly Savings

Scheme (MSS)

Fixed Deposits

Nu

mber

of

Acc

ou

nts

Types of Deposit Accounts

Figure 3.5

Total Deposit Accounts Opend in Jamuna Bank, Konabari

Branch

(From 2004 - October, 2016)

41


0

500

1000

1500

2000

2500

3000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

Nu

mb

er o

f A

ccou

nts

Figure 3.6

Number of Deposit Accounts Opened in JBL Konabari branch

(from 2006-2016)

Savings Accounts

Current Accounts

Monthly Savings Scheme

Fixed Deposits

Year

42

3.3.1 Factors related to customer satisfaction — why customers are leaving

the branch

Customer Satisfaction

Kotler (2000) defined satisfaction as ―a person‘s feeling of pleasure or disappointment

resulting from comparing a product‘s perceived performance (or outcome) in relation to his

or her expectations‖. Organizations can accomplish customer satisfaction by satisfying their

customers‘ needs and wants (La Barbera and Mazursky, 1983). Customer Satisfaction is

customers‘ collective conception of a firm‘s service performance (Johnson and Fornell,

1991). So if the customer are satisfied then the number of loyal customers will increase. On

the other hand, if customers are not satisfied they may switch to another bank.

Factors related to customer satisfaction — why customers are leaving the branch:

Interest Rate on Deposit

Service Charges

Service Quality

Competition among Banks

Demographic Factors

Standard Garments Accident

Substitute Products of Other Banks

Credit Card Facility

Economic Condition of Clients

Easy Loan Facility

Location of the Branch and number of ATM booths

Part 03

Chapter 03

Factors related to customer satisfaction — why customers are

leaving the branch

43

Interest rate on Deposit

Even though the interest rates are fall on a range for all the commercial banks but the

customers may feel satisfied to have an account in the Bank, which provides highest interest

rates.

Table 3.3

List of Interest Rate on Major Deposit Products of Different Banks in Konabari, Gazipur

SL

NO. Name of Bank

Fixed Deposit

(Highest Rate

in One Year )

Monthly Savings

Scheme (MSS),

or DPS

Savings

Deposit

1 Bangladesh Krishi Bank 5.5% 10% 4%

2 IFIC Bank 5.50% 7.5% 4%

3 Dutch Bangla Bank 4.50% 6% 4%

4 Jamuna Bank Ltd. 5 % 8.50 % 3 %

5 Mercantile Bank 5% 6.25% 3.5%

6 Southeast Bank Limited 5.50% 7.75% 3.25%

7 Dhaka Bank 4.50% 5.50% 3%

8 BRAC Bank Limited 6.50% 8.75% 4%

9 Bank Asia 5.50% 7% 3%

10 Premier Bank 6.50% 9.25% 2.5%

11 Uttara Bank 5% 7% 3.5%

12 Islami Bank Bangladesh Ltd. 5% to 7% 6% to 9% 3% to 5%

13 UCB Bank 5.25% 7.5% 3.5%

Source: Author work based on data obtained by visiting the Branches

I have collected the interest rates of different Bank‘s major deposit products in Konabari

Gazipur. In table 3.3, the list of interest rates on major deposit products of different Banks is

given. We can see Jamuna Bank provides similar interest rates on deposit products. So the

depositors may discontinue from the Bank if they find another Bank is providing more

interest rates. The table 3.3 shows that Jamuna bank‘s interest is higher than 8 other banks

except Bangladesh Krishi Bank. So the interest is not a major cause for customer to leave in

conclusion.

44

Source: Author work based on data obtained by visiting Branches

Service Charges

Service charges or maintenance fees taken by a bank from its clients affect customers‘ choice

whether to stay with the bank or to switch to another bank. Although the basic charges are

similar in all the commercial banks but if any bank takes more charges than its competitors

do, customers will switch to other bank. It is one of the essential reasons behind

dissatisfaction of the depositors. If the depositors find that, their bank is taking more service

charge than other banks then they will switch to another bank. However, it is found that,

service charges for basic products are similar in the private commercial banks.

10%

7.50%

6%

8.50%

6.25%

7.75%

5.50%

8.75%

7%

9.25%

7%

9%

7.50%

0

0.02

0.04

0.06

0.08

0.1

0.12

Inte

rset

Ra

te o

n D

PS

Name of bank operating in Konabari

Figure 3.7

Interest Rate on DPS provided by different Banks in Konabari

45

Table 3.4

Service Charge

Nature of charges Rates

Half yearly

maintenance fee

Tk.500/-


Half yearly

maintenance fee

Tk.300/-

(No maintenance fee upto Tk.5000/-)


Source: Author work based on data obtained from JBL Konabari Branch

Service Quality

Service quality varies from bank to bank. But all staff are highly qualified and trained to

provide best service to its customers. From our survey, this report will try to find out what

customers say about the service quality of the branch.

Competition among Banks

The first bank opened their branch in Konabari was the Bangladesh Krishi Bank in 1988.

Jamuna Bank opened their branch in Konabari in 2004. JBL is the number 4 branch opened

in Konabari before JBL only three banks came here. In time, other commercial banks also

opened their Branch in Konabari. So, the competition among these banks increased.

Konabari has a population around five to six lacs. Many industrial factories are operating

here. So, people from other districts are coming in Konabari for their livelihood. So there are

lots of potential customers in this area and many Banks also came after Jamuna Bank. Table

3.5 shows the list of the banks and their opening year of branch in Konabari, Gazipur.

46

Table 3.5

List of The Banks and their Opening Year of Branch in Konabari, Gazipur

SL NO. Name of the Bank Opening Year of the branch in Konabari, Gazipur

1 Bangladesh Krishi Bank 1988

2 IFIC Bank 1992

3 Dutch Bangla Bank 2001

4 Jamuna Bank Ltd. 2004

5 Mercantile Bank 2006

6 Southeast Bank Limited 2008

7 Dhaka Bank 2008

8 BRAC Bank Limited 2009

9 Bank Asia 2009

10 Premier Bank 2009

11 Uttara Bank 2009

12 Islami Bank Bangladesh Limited 2011

13 UCB Bank 2012

Source: Author work based on data obtained by visiting Branches

Industrialization has made Konabari the central area in this reason. The total area of central

Konabari is approximately 4.8 km.

The figure 3.8 shows the service area covered by the different Banks in Konabari, Gazipur.

The other areas near Konabari are Ambag, Konabari College Gate, Parijat, Baimail, Jarun etc.

From these local area customers come to take banking service in Konabari. The central part

of Konabari has many retail stores, small and medium size enterprises, and many sole

proprietorship businesses.

47

Figure 3.8

Service Area Covered by the Banks in Konabari, Gazipur

Source: Google Map, 2016

Source: Author work based on data obtained from visiting the branches

1988

1992

20012004

20062008 2008 2009 2009 2009 2009

2011 2012

1985

1990

1995

2000

2005

2010

2015

Year

Name of the Bank

Figure 3.9Opening Year of Branch of different Banks' in Konabari, Gazipur

48

Figure 3.10

Total Distance of Konabari Area

Source: Google Map, 2016

Most of the bank opened their branch in Konabari are near BSCIC area and located on the

roadside of Dhaka-Tangail highway. There is extensive competition exist among the banks in

the area.

Demographic Factors

Job change is one the essential reasons behind depositors‘ discontinuation. If the customers

change their job, they change their company and move from one place to another. If their

primary Bank does not have any Branch in their new relocated place they discontinue

account. So, job change and relocation affects depositors to discontinue. Many service

holders deposit money in their salary accounts, if they change their job, the new company

may ask them to open a new account in that Bank in which the company will provide salary.

Thus, job change affects customers to discontinue.

Standard garments accidents

49

Jamuna Bank has a large number of depositors from Standard Garments. A fire accident in

Standard garments in 2013 has caused the Bank to lose many depositors. Standard Garment is

one of the biggest garment factories in Konabari. As the factory was burnt by fire accident,

many people lost their job. Thus Jamuna Bank has also lost a large number of depositors who

ware from Standard garments. So this is one of the major reason for customers

discontinuation.

Substitute Products of Other Bank

Substitute products provided by other Bank such as Bkash, Rocket etc. are very popular

among the customers. When I was working JBL Konabari Branch I found that, some

customer do not come to Bank because they use Bkash to receive money from their relatives

from abroad. Because in the Branch they require documents and it takes long to get money

from Bank so they use Bkash.

Credit Card Facility

JBL Konabari branch has offered 24 credit cards to depositors‘ since the branch opened in

2004. Other banks such as BRAC bank offering credit cards to the depositors if they only

open account in their branch. JBL‘s credit card getting process is very time consuming and

the Branch offer credit card to only few customers who fulfill the condition of the Bank.

Economic Condition of Client

Currently there are many businesses and factories are facing huge completion in this area.

Because of bad economic condition such as income reduction, small business could not

sustain in this intense completion. So they are closing their business. And unemployment is

increasing. So JBL‘s many current accounts are closed because of bad economic condition of

customers.

Easy Loan Facility

According to, Md. Jamal Hossain, the loan in charge officer of the branch, JBL is following

conservative policy to provide loan to its clients. Also the loan processing is not easy in the

Branch and it takes long time to get the loan he said. If the clients get easy loan facility in

another bank, they will switch to that bank and discontinue in JBL.

Location of the Branch and number of ATM booths

50

Location of the branch of a private commercial bank affects its success. Customers feel

comfortable to take service from a bank, which is close to his business, residence, or office.

Because it saves time for the customer to go to the nearest bank, they usually do not open

account to the bank that takes more time to visit. As the products of commercial banks are

less differentiated, they try to save their time by opening account in nearest branch and which

has ATM facility.

Figure: 3.11

Location of The Branches of Differnet Banks in Konabari, Gazipur

Source: Google map, 2016

So if the branch and ATM location is in distant position from the business any business man

will try to save time by taking service from the nearest Branch if the service is available. In

the figure 3.11, the map shows that the most of the branches are located near the same

highway in Konabari. Sometime depositors may not want to even cross the road and go to the

other side of the road to deposit or withdraw money in their accounts. So before opening a

Bank account they think carefully and choose the Branch.

ATM booths also play important role in customers‘ perception to choose a bank. If any bank

has more ATMs in specific service area then the customer base can increase in significant

number for that Bank. In Konabari area Dutch Bangla Bank has more ATMs than other

Banks. Jamuna Banks has only two ATMs. In conclusion, location is not the major cause to

lose depositors of the branch as the JBL branch is in the central area of Konabari.

51

Part 4

Actual Task Part

52

4.1 Internship Experience

This report has been prepared as per the requirement for successful completion of the

practicum program of IUBAT University. Exposure to the business environment to acquire

practical work experience was the primary learning of this practicum program. I have done

three months long internship in Jamuna Bank, Konabari Branch. Through internship, I have

learned the basic idea about the practical business culture and practices in the banking

business environment. I started my internship in JBL Konabari Branch from 9 October 2016

and it was a great experience for me. I worked almost 3 months in the Branch. All the stuffs

of the bank were very welcoming and helpful. I was very lucky to get experience of working

in different departments within these three months.

4.2 Brief information of JBL Konabari Branch

Table 4.1

Address of JBL Konabari Branch

Branch opening year 2004

Address Plot # S-66 (Est Part), BSCIC Shilpa Area, Konabari, Gazipur.

Phone: 9297182 , 9297183 (PABX)

Name of the Manager Mr. Md. Nurul Huda

Email: [email protected]

Supervisor’s

Information

Md. Afzal Hossain

SEO, Sub-Manager

Supervisors Contact

Details

Phone: 9297182, Mobile: 01711-355392,

Email: [email protected]

Source: Author work based on data obtained from the Branch.

53

4.3 Internship Timeline

Table 4.2

Internship Work Activities

Activities Starting

Date

Duration

(Days)

Ending Date

Accounts Opening Section 09-Oct 50 27-Nov

Cheque Clearing Section 20-Nov 15 04-Dec

Accounts Section 23-Nov 19 11-Dec

Source: Author work

Source: Author work based on internship activities

09-Oct 29-Oct 18-Nov 08-Dec 28-Dec

Accounts Opening

Section

Cheque Clearing

Section

Accounts Section

Duration of work

Nam

e o

f th

e w

ork

ing

secti

on

Figure 4.1

My Internship Activities in JBL Konabari Branch

54

Figure 4.2: Internship activities chart

Source: Author work

In the internship activities chart 4.2, I have illustrated the sections I have worked. In the

account opening section, I have worked with the guidance of Md. Ahshanul Haque the junior

officer in charge of the front desk of JBL Konabari Branch. Most of my internship program I

worked in this section. While I was working in the account opening section, I became

familiar with the cheque clearing section. After few days, I have worked in the clearing

Manager

Md. Nurul Huda

SEO, Sub-Manager

Md. Afzaj Hossain

(Supervisor)

Internship

Acceptance

Account

Opening

Junior Officer

Md. Ahshanul Haque

(Account opening

Section)

Cheque Clearing Executive Officer

Mr. Biplob Karmokar

(Cheque Clearing

Section)

Accounts Section Assistance Officer

Md. Nazmus Sakib

(Accounts Section)

55

section. Next section I worked was the accounts section. And after that I worked for one

week in the cash section.

4.4 Primary learning

Specific Job Description:

Accounts Opening Section:

The first section I worked was account-opening section, which is under general banking.

Here I worked with the guidance of junior officer. Here I have worked from 9 October to 27

November 2016. In the account opening section there are mainly four types of accounts I

opened. These are Savings account, Current account, Fixed Deposit account and Monthly

Savings Scheme (MSS) account. In this section, I have done following works:

Account opening process:

The account opening process I followed in Jamuna Bank Konabari Branch as follows:

First, customers choose to open specific types of accounts or I helped them by giving

a brief about different accounts and then the customers choose a product that he or she

wants to open.

For savings account customer should have two copies of passport size photograph of

them, one passport size photograph of nominee and for both of them the photocopy of

National ID card and an introducer‘s signature who has a savings account in Jamuna

Bank.

For Current account, the customer has to bring the trade license in addition to 2 copies

of passport size photograph. And photocopy of national ID card. And an introducer.

The minimum balance required to open a savings account is Tk 1,100 and for the

current account Tk 2,000.

Then, I have taken signature from the customer in the account opening from.

Then, I wrote the address of the customer and other required information were taken

from the customer.

56

Next step was to register the name of the customer and get the account number from

the register then prepare the deposit slip for the customer and deliver it to them.

Then the customer deposits a minimum amount of taka in cash section.

Next, I input the data into the system and get the Customer Relationship Number.

Thus, an account is opened for customer.

So I have followed the above mentioned process to open a savings or current deposit

accounts. In these four weeks of time, I helped customer to open different types of accounts

in JBL Konabari Branch:

Table 4.3

Name and number of accounts I helped customers to open

Name of the accounts Numbers

Savings accounts 70

Current accounts 10

Fixed deposits 15

Monthly Savings Accounts 40

Source: Author work

In the account opening section, I have also done other works. They are as follows:

Customer service.

I have filled up different accounts forms.

Entry the cheque books to the register.

Delivered the chequebook to the customers and took signature from the customers

before delivering.

Receiving chequebook requisition slip from the customers.

Getting CRM number by inputting all the information about the customer in the

system server.

Inputting all the data and information in the flora bank software and preparing

KYC profile.

Cheque Clearing Section:

57

From 20 November to 4 December 2016, I worked in clearing section. In clearing section

transactions of cheques from other banks happens. My assignments in this section as follows:

Sorting the vouchers of clearing section

Entry the transactions number in a register and at the end of the day.

Then I had to sum up the amount and check with the automated amount from

computer. The amount had to be the same.

I learned how to work in pressure in a work because cheque clearing cannot be

mistaken.

Accounts Section:

Here I have worked from 23 November to 11 December 2016. It is under General banking

department. In this section my job was:

Sorting the vouchers

After voucher sorting, I had to attach them with related supplementary. Voucher is

actually a proof of the transactions.

There are various types of voucher and different number categorizes them. Which I

had to separate and sort group wise.

Supplementary is the automated list of all transactions. Each of the transaction has

related voucher. My job was to attach them according the number and check the

amount of transaction.

After attaching them next job was to balance. Balancing means to do sum and

ensuring that debit and credit is equal.

Then prepare it for binding in an organized format. It is prepared for binding and I did

another job, which was to make entry of the amount in a register.

Clean cash was another job that I have done in this section.

After preparing the supplementary, the next job was to clan cash. Here I did sorting of

the supplementary in a day.

There are clearing, transfer and cash supplementary in the branch.

Clean cash is actually checking the balance and sort the supplementary according to

clearing, transfer and cash.

58

4.5 Secondary learning

While working in the bank I learned punctuality in job life. Every working day I went on the

office on time i.e. 10.00 in the morning and left the office at the evening 5.00pm. Observing

the Banks veteran staffs how they deal with customers was a great learning opportunity in the

internship program. The primary learning from the internship as follows:

Time maintenance

Discipline in the workplace

Communicating with branch employees

Phone call with customers

This internship work experience will help me in my future career life. In the

university, we learn from books but when we work in the practical business environment, we

get opportunity to learn by working. The working experience in the branch will help me a lot

in my career.

59

Part 5

Project Part

60

5.1 Problem Statement

A large number of deposit account holders are discontinuing and leaving Jamuna Bank, Konabari

Branch, and the management wants to know why.

5.2 Background of the Problem

While working in the front desk of JBL Konabari branch I have found that a large number of

customers discontinuing and a good number of accounts are closed. The Branch has made a

performance evaluation in 2016 and found that an alarming number of customers are leaving the

Branch. So it appears that customers are not satisfied.

5.3 Project Timeline

To prepare this project report I had to spend total two months. The project activities as follows:

Table 5.1

Project timeline activities

Activities Starting Date Duration (Day) Ending Date

Problem statement 09-Oct 14 22-Oct

Research plan 23-Oct 7 29-Oct

Collecting the information 30-Oct 28 26-Nov

Analyzing and interpretation 27-Nov 9 05-Dec

Findings and recommendations 06-Dec 3 08-Dec

Source: Author work

Source: Author work based on project timeline activities

14

7

28

9

3

09-Oct 19-Oct 29-Oct 08-Nov 18-Nov 28-Nov 08-Dec 18-Dec

Problem statement

Research plan

Collecting the information

Analyzing and interpretation

Findings and recommendations

Duration

Act

ivit

ies

Figure 5.1

Project Timeline (Gantt chart)

61

5.4 Budget information: The total expenditure to prepare this project is as follows:

Table 5.2

Budget information

Particulars Amount (BDT)

Transportation cost 700/-

Printing, Photocopy & Binding 1,500/-

Cell phone and Internet bills 1,500/-

Other expenses 700/-

Total 4,400 /-

Source: Author work

5.5 Research Methodology

5.5.1 Research approach: Quantitative

5.5.2 Research Philosophy: The purpose of this research is to identify the factors related to

the customer satisfaction of JBL and to know why an alarming number of customers

are leaving the branch. This research will focus on observing the factors related to

customers‘ discontinuation and will try to find out practical solutions to avoid the

threats of losing the existing customers.

5.5.3 Type of Research: Descriptive research

5.5.4 Method of data collection

Primary Sources of Data

Sample survey of deposit account holders of Jamuna Bank, Konabari Branch.

Conversation with the JBL Branch staffs.

Visiting the branches of different banks operating in Konabari, Gazipur.

Secondary Sources of Data

In this study, I have collected data from the annual report of JBL, website of

Jamuna Bank, and different websites of other banks, and newspaper.

62

5.5.5 Population and Sampling Methods: All the deposit account holders of JBL,

Konabari Branch were the population of this research.

Sample size: 45 the deposit account holders of JBL, Konabari Branch

Sampling Method: To choose the respondents for survey a simple random

sampling procedure is followed. Face to face, interview of the customers of the

Branch and telephone call to the dormant account holders ware done.

5.5.6 Research Limitations: The duration of the research was not sufficient. Bank officers

remain always busy and I had to work in the Branch, so data collection was not easy

in the office time. There was internal privacy of the branch so the staffs could not

provide some data.

5.6 Hypothesis Development and Test

1. HA: JBL provides modern banking facilities such as ATMs, Online banking, Mobile

banking.

2. HA: JBL offers same features for example reliability, instant service, security on mobile

banking like other bank (Bkash, Rocket).

3. HA: JBL provides quick and reliable service to depositors.

4. HA: JBL follows conservative policy to offer credit card to depositors.

5. HA: Job change, relocation, economic condition (reduced income, unemployment) affects

customers to discontinue or leave the Branch.

6. HA: Standard garment‘s fire incident in 2013 has an effect to lose deposit account holders.

7. HA: JBL is very strict on loan facilities on deposits by the customers.

8. HA: Competing banks are doing more aggressive marketing than JBL

5.6.1 Hypothesis Test: Z-Test

As my sample size is 45, I have used Z test for the study. The following formula has been

followed:

63

Z test =

μ = population mean

n = sample size

s= Standard deviation

X = Average

5.6.2 Hypothesis Scale

The scale has been shown below:

Table 5.3

Hypothesis scale

Customers Opinion Weighted

Strongly Disagree 1

Disagree 2

Neither agree nor Disagree 3

Agree 4

Strongly Agree 5

Source: Author work

n

s

X

64

5.6.3 Hypothesis Testing

Table 5.4

Summary of the responses of deposit account holders of JBL Konabari Branch

Particulars H1 H2 H3 H4 H5 H6 H7 H8

1=Strongly disagree 2 10 4 4 3 1 2 3

2= Disagree 7 15 7 6 7 2 5 6

3=Neither agree nor disagree 6 10 10 9 10 9 10 10

4=Agree 20 7 14 12 15 18 14 12

5=Strongly agree 10 3 10 14 10 15 14 14

Total 164 113 154 161 157 179 168 163

Average ( 𝑿 ) 3.64 2.51 3.42 3.57 3.49 3.98 3.73 3.62

Standard deviation (s) 1.12 1.18 1.24 1.29 1.19 0.95 1.14 1.23

Z test value 6.71 0.06 4.98 5.57 5.58 10.45 7.23 6.11

Source: Author calculation based on data obtained from survey

65

5.7 Data Analysis and Interpretation

H1

Ho: JBL does not provide modern banking facilities such as ATMs, Online banking, Mobile

banking.

HA: JBL provides modern banking facilities such as ATMs, Online banking, Mobile banking.

Ho: μ =2.5

HA: µ >2.5

n= 45

Here,

𝑋 = 3.64

σ = 1.12

Z cal= (𝑋 -μ) / (s/√n) = 6.71

At 5% level of significance, follows Z distribution Z0.05 = 1.645

Since Z cal > Z tab, the null hypothesis is rejected. So at 5% level of significance, it can be

said that JBL provides modern banking facilities such as ATMs, Online banking, Mobile

banking.

Interpretation: Around 66% customers said that the branch has modern banking facilities such

as ATMs, Online banking, Mobile banking to deposit account holders.

5%

16%

13%

44%

22%

Figure 5.2: Percentage of responses on H1

Strongly disagree

Disagree

Neither agree nor disagree

Agree

Strongly agree

66

H2

Ho: JBL does not offer same features for example reliability, instant service, security on

mobile banking like other bank (Bkash, Rocket).

HA: JBL offers same features for example reliability, instant service, security on mobile

banking like other bank (Bkash, Rocket).

Ho: μ =2.5

HA: µ >2.5

n= 45

Here,

𝑋 = 2.51

σ = 1.18

Z cal= (𝑋 -μ) / (s/√n) = 0.06


Since Z cal < Z tab, the null hypothesis is not rejected. So at 5% level of significance, it can

be said that JBL does not offer same features for example reliability, instant service, security

on mobile banking like other bank (Bkash, Rocket).

Interpretation: Around 55% customers said that JBL does not offer same features for example

reliability, instant service, security on mobile banking like other bank (Bkash, Rocket).

22%

33%

22%

16%

7%

Figure 5.3 : Percentage of responses on H2

Strongly disagree

Disagree

Neither agree nor disagreeAgree

Strongly agree

67

H3

Ho: JBL does not provide quick and reliable service to depositors.

HA: JBL provides quick and reliable service to depositors.

Ho: μ =2.5

HA: µ >2.5

n= 45

Here,

𝑋 = 3.42

σ = 1.24

Z cal= (𝑋 -μ) / (s/√n) = 4.98



said that JBL provides quick and reliable service to depositors.

Interpretation: Around 53% customers said that JBL provides quick and reliable service to

depositors.

9%

16%

22%31%

22%


Strongly disagree

Disagree

Neither agree nor disagreeAgree

Strongly agree

68

H4

Ho: JBL does not follow conservative policy to offer credit card to depositors.

HA: JBL follows conservative policy to offer credit card to depositors.

Ho: μ =2.5

HA: µ >2.5

n= 45

Here,

𝑋 = 3.57

σ = 1.29

Z cal= (𝑋 -μ) / (s/√n) = 5.57



said that JBL follows conservative policy to offer credit card to depositors.

Interpretation: Around 58% customers said that JBL follows conservative policy to offer

credit card to depositors.

9%

13%

20%

27%

31%

Figure5.5 : Percentage of responses on H4

Strongly disagree

Disagree


Agree

Strongly agree

69

H5

Ho: Job change, relocation, economic condition (reduced income, unemployment) has no

effect on customers to discontinue or leave the Branch.

HA: Job change, relocation, economic condition (reduced income, unemployment) affects

customers to discontinue or leave the Branch.

Ho: μ =2.5

HA: µ >2.5

n= 45

Here,

𝑋 = 3.49

σ = 1.19

Z cal= (𝑋 -μ) / (s/√n) = 5.58



said that Job change, relocation, economic condition (reduced income, unemployment)

affects customers to discontinue or leave the Branch

Interpretation: Around 55% said that job change, relocation, economic condition (reduced

income, unemployment) affects customers to discontinue or leave the Branch.

7%

16%

22%33%

22%


Strongly disagree

Disagree


Agree

70

H6

Ho: Standard garment‘s fire incident in 2013 has no effect to lose deposit account holders.

HA: Standard garment‘s fire incident in 2013 has an effect to lose deposit account holders.

Ho: μ =2.5

HA: µ >2.5

n= 45

Here,

𝑋 = 3.98

σ = 0.95

Z cal= (𝑋 -μ) / (s/√n) = 10.45



said that Standard garment‘s fire incident in 2013 has an effect to lose deposit account

holders of the branch.

Interpretation: Around 73% customers of the said, that Standard garment‘s fire incident in

2013 has an effect to lose deposit account holders.

2%5%

20%

40%

33%


Strongly disagree

Disagree


Agree

Strongly agree

71

H7

Ho: JBL is not very strict on loan facilities on deposits by the customers.

HA: JBL is very strict on loan facilities on deposits by the customers.

Ho: μ =2.5

HA: µ >2.5

n= 45

Here,

𝑋 = 3.73

σ = 1.14

Z cal= (𝑋 -μ) / (s/√n) = 7.23



said that JBL is very strict on loan facilities on deposits by the customers than competing

banks.

Interpretation: Around 62% customers said that JBL is very strict on loan facilities on

deposits by the customers than competing banks

5%11%

22%

31%

31%


Strongly disagree

Disagree


Agree

Strongly agree

72

H8

Ho: Competing banks are not doing more aggressive marketing than JBL

HA: Competing banks are doing more aggressive marketing than JBL

Ho: μ =2.5

HA: µ >2.5

n= 45

Here,

𝑋 = 3.62

σ = 1.23

Z cal= (𝑋 -μ) / (s/√n) = 6.11



said that competing banks are doing more aggressive marketing than JBL.

Interpretation: Around 58% customers said that competing banks are doing more aggressive

marketing than JBL.

7%

13%

22%

27%

31%

Figure 5.9: Percentage of responses on H8

Strongly disagree

Disagree


Agree

Strongly agree

73

5.8 Findings

After survey and analyzing the customers‘ opinion on questionnaire, I have found some

important evidences. These are as follows:

1. In hypothesis 1 titled, ‘JBL provides modern banking facilities such as ATMs, Online

banking, Mobile banking.’ 5% respondents strongly disagreed, 16% respondents

disagreed, 13% respondents neutral, 44% respondents agreed, and 22% respondents

strongly agreed. So it clearly indicates that the branch is satisfying the customers

by providing modern banking facilities.

2. In hypothesis 2 titled, ‘JBL offers same features for example reliability, instant

service, security on mobile banking like other bank (Bkash, Rocket).‘ 22%

respondents strongly disagreed, 33% respondents disagreed, 22% respondents neutral,

16% respondents agreed, and 7% respondents strongly agreed. So it clearly indicates

that JBL mobile banking is not at the same level of Bkash and Rocket or other

competing bank.

3. In hypothesis 3 titled, ‘JBL provides quick and reliable service to depositors.’ 9%

respondents strongly disagreed, 16% respondents disagreed, 22% % respondents

neutral, 31% respondents agreed, 22% respondents strongly agreed. So it clearly

indicates that JBL provides quick and reliable service to depositors.

4. In hypothesis 4 titled, ‘JBL follows conservative policy to offer credit card to

depositors.’ 9% respondents strongly disagreed, 13% respondents disagreed, 20%

respondents neutral, 27% respondents agreed, 31% respondents strongly agreed. So it

clearly indicates that JBL follows conservative policy to offer credit card to

depositors.

5. In hypothesis 5 titled, ‘Job change, relocation, economic condition (reduced income,

unemployment) affects customers to discontinue or leave the Branch.’ 7%

respondents strongly disagreed, 16% respondents disagreed, 22% respondents neutral,

33% respondents agreed, 22% respondents strongly agreed. So it clearly indicates

74

that job change, relocation, economic condition (reduced income,

unemployment) affects customers to discontinue or leave the branch.

6. In hypothesis 6 titled, ‘Standard garment’s fire incident in 2013 has an effect to lose

deposit account holders.’ 2% respondents strongly disagreed, 5% respondents

disagreed, 20% respondents neutral, 40% respondents agreed, 33% respondents

strongly agreed. So it clearly indicates that Standard garment’s fire incident in

2013 has an effect to lose deposit account holders.

7. In hypothesis 7 titled, ‘JBL is very strict on loan facilities on deposits by the

customers.’ 5% respondents strongly disagreed, 11% respondents disagreed, 22%


clearly indicates that JBL is very strict on loan facilities on deposits by the

customers.

8. In hypothesis 8 titled, ‘Competing banks are doing more aggressive marketing than

JBL’ 7% respondents strongly disagreed, 13% respondents disagreed, 22%


clearly indicates that customers believe competing banks are doing more

aggressive marketing than JBL.

75

5.9 Recommendations

After doing internship in JBL, Konabari Branch I have found that all the staffs are very active

to provide better service to customers. While I was working in the Branch, I have found that

although the Branch has an alarming number of dormant account holders many new

customers are coming to JBL. However, it is always easy to make happy an existing

customers than new one. The following recommendations are prepared to increase the

satisfaction of depositors of JBL Konabari Branch:

JBL need to make the mobile banking more customer oriented by making it more

reliable that provide fast service to customers. JBL need to make them familiar to

customers by advertising.

While competing banks in a service area are providing credit cards to depositors by

asking the customer but JBL is very strict on credit card offering. So the branch needs

to be more flexible to keep the customers. Thus, they will not switch to another bank.

JBL should open new branch in all the potential area in the country. Thus, Job change,

relocation of deposit account holders will not cause the bank to lose customers.

JBL need to be more flexible in loan processing. The bank is very much concerned to

avoid default loan. However, the bank should make understand the customers about

their policy.

The competing banks are doing aggressive marketing. JBL should advertise their

products in electronic media such as TV advertisement, print media, and social media

etc. to attract new customers.

76

5.10 Conclusion

A study on total deposit customers of JBL, Konabari Branch in Gazipur, supports the

conclusion that the Bank should expand its mobile banking and open new branch so that

customers do not leave the branch by switching to another bank. Moreover, the bank should

be more flexible on credit card offering to deposit account holders because competing banks

are doing aggressive marketing. So the customer may become dissatisfied by these activities.

On other hand, the bank has the conservative policy on lending loan but in the long run JBL

will receive a significant profit. However, from the observation of the customers the report

suggests that the bank should minimise loan processing time and make the overall process

customer friendly. Although an alarming number of deposit account holders are leaving, the

Branch but number of new customer is increasing. So to make them satisfied the bank should

initiate above recommendations. The internship work in the Branch was truly helpful for me.

It will help me in my career journey.

77

References

Primary data sources

1. Survey of the customers

2. Conversation and Interview with bank officer

3. Visiting the branches of different banks in Konabari, Gazipur

Secondary data sources

1. "Jamuna Bank Ltd."(2016) Jamunabankbd.com. N.p., 2016. Web. 24 Oct. 2016.

2. All Branch Loaction, (2016). ―Jamuna Bank Ltd.‖ website Available at:

http://jamunabankbd.com/front/allbranch [Accessed on 24th Oct,2016]

3. Objectives, Jamuna Bank Ltd, view 24th

October 2016, Available at:

http://jamunabankbd.com/front/information/1/11

4. Economy of Bangladesh,Wikipedia, viewed 24th


https://en.wikipedia.org/wiki/Economy_of_Bangladesh

5. List of banks in Bangladesh, Wikipedia, viewed 14th


https://en.wikipedia.org/wiki/List_of_banks_in_Bangladesh

6. Mirdha, R.U. and Akand, A.B.S. (2013) Workers set RMG factories on fire. Available

at: http://www.thedailystar.net/news/workers-set-rmg-factories-on-fire (Accessed: 4

December 2016)

Magazines/Books:

Kotlar, Philip and Amstrong, G. (2006), Principles of Marketing. 11th ed. Prentice -

Hall Inc.

Zikmund, G. William. ―Business Research Methods‖ 7th

ed. Singapore: Thomson

Learning South Western, 2003

Lesikar, Raymond Vincent et al. Business Communication. 11th ed. McGraw-

Hill/Irwin, 2012. Print.

Annual Report 2015, Jamuna Bank Limited

http://jamunabankbd.com/front/allbranch



https://en.wikipedia.org/wiki/Economy_of_Bangladesh

https://en.wikipedia.org/wiki/List_of_banks_in_Bangladesh

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Appendices

Survey Questionnaire for Customers

Jamuna Bank, Konabari Branch

Dear Sir/Madam

I am student of BBA Program in International University of Business Agriculture and

Technology. As part of completion of internship, I am conducting a survey of deposit account

holder‘s satisfaction and why customers are discontinuing JBL, Konabari Branch. I would

like to have your valuable opinion on it. The information will be used for study purpose only.

Respondent’s profile:

Gender of the customer □ Male □ Female

Age (In years): □ Below 15 □ 15-25 □ 25- 35 □ Above

35

Profession □ Businessman □ Job Holder

□ Self

employed

□ Housewife

□

Student

What type of A/C do you have in Jamuna Bank, Konabari Branch?

□ Savings Account □ Current Account □ Monthly Scheme Deposit Account □ Fixed deposit

Do you agree with following statements?

1. ‘JBL provides modern banking facilities such as ATMs, Online banking, Mobile banking.’

1) Strongly disagree 2) Disagree 3) Neither agree nor disagree 4) Agree 5) Strongly agree

2. ‘JBL offers same features for example reliability, instant service, security on mobile banking like

other bank (Bkash, Rocket).’


79

3. ‘JBL provides quick and reliable service to depositors.’


4. ‘JBL follows conservative policy to offer credit card to depositors.’


5. ‘Job change, relocation, economic condition such as reduced income, unemployment affects

customers to discontinue or leave the Branch.’


6. ‘Standard garment’s fire incident in 2013 has an effect to lose deposit account holders.’


7. ‘JBL is very strict on loan facilities on deposits by the customers.’


8. ‘Competing banks are doing more aggressive marketing than JBL’


Thank You

Abbreviations used in this report

A/C - Accounts

BSCIC - Bangladesh Small and Cottage Industries Corporation

CSR - Corporate Social responsibility

CRM- Credit Risk Management

JBL – Jamuna Bank Limited

KYC- Know Your Customer

SME - Small & Medium Enterprise