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Retail Products, with special focus on Retail Finance Center (RFC)

1.1 Introduction
With the advent of the 21
st
century, globalization and consolidation, amongst the
multinational and foreign companies are making their impact in the third world economy
including that of Bangladesh. To address this ever increasing competition, Bangladeshi
financial institutions and other companies and firms gearing themselves in order to meet
challenges both locally as well as internationally.
Due to globalization and expansion of international business, finance plays the major
roles for the economic development. The development of a modern economy would not
have been possible without the use of money. A fundamental characteristic of money is
that it is like a collective commodity. There is a parallel relationship between the money
and banking. Bank is an important and essential financial institution for the necessity of
the use of money and the protection of the money.

As a MBA student, I felt that banking is an excellent area to gather some practical
knowledge, with a view to develop skilled professional in banking area. As a partial and
essential requirement of the MBA degree, on authoritys instruction I have selected The
City Bank Limited, one of the prominent banking institutions of Bangladesh to acquire
some practical experience in banking, especially in the correspondent banking program.
1.2 Importance of the Study
Internship is conducted to acquire practical knowledge practical works which may also
help our aim and ambition. It will be helpful for us through experience in the job. After
academic exam Internship program becomes great efficacy for University students. It is
expected that students focal point of knowledge is practical office management.
Through this program one can learn Organizational Behavior, Top level Executive trend
and maintain relationship with other Companies. Students can gather knowledge by
using different techniques and procedures by performing in the practical field. This will
be an advance experience for the students before entering in the job market. More over
through Internship program students get the chance to know about the Policy and
Strategy erected by the Executives and Top levels Managers. Soon after, students will be
able to apply the experience in their profession.
1.3 Origin of the Report
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Retail Products, with special focus on Retail Finance Center (RFC)
This report is an internship report prepared as a requirement for the completion of the
MBA program. The primary goal of the internship was to provide an on the job
exposure to the student and an opportunity for translation of theoretical conceptions in
real life situation. We, the students, were placed in enterprises, organizations, research
institutions as well as development projects.
In this connection, after the completions of the MBA program, I was assigned to the
Head Office of The City Bank Limited for practical orientation. I chose the topic
Retail Products, with special focus on Retail Finance Center (RFC) of The City
Bank LTD for my internship report under the supervision of Farjana Afrin, Assistant
Professor (Accounting), Faculty of Business Administration, Stamford University
Bangladesh.
Retail product is consumer products consisting of loans and depository products that
help to attract both foreign and local customers.
1.4 Background of the Study
Banking system occupies an important place in a nations economy. A banking
institution is indispensable in a modern society. It plays a pivotal role in the economic
development of a country and forms the core of the money market in an advanced
country. In recent times the banking sector over the world has been undergoing a lot of
changes due to deregulation, technological innovation, globalization etc. Bangladesh
banking sector is lagging for behind in adopting these changes.
The City Bank Limited (CBL) has started its Business with all the features of a
Corporate Bank and the Products of both Corporate and Retail Banking System; to
facilitate the all types of loan facilities and to provide the Foreign Trade to their
honorable client. CBL is always trying to improve their Banking System in every sector,
but in todays Competitive Business World, Banks need to offer additional concentration
to the Clients requirements in order to stay at the top. Therefore, besides dealing with
the general attributes of Different Products, they have been trying to put more emphasis
on the Customer Benefits and other Customer related Facilities.

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Retail Products, with special focus on Retail Finance Center (RFC)
1.5 Objectives of the Study
1.5.1 General Objective:
The general objective of the report is to present a general overview of the different
Retail Product of The City Bank Limited as a private commercial bank as well as its
strategy in the marketing arena.
1.5.2 Project objective:
Objectives regarding this study are as follows:
= To fulfill academic requirement
= To gain practical knowledge in the banking sector
= To collect an overview of the private banking in our country
= To find the length and variety of retail products
= To identify major strengths and weaknesses of The City Bank Limited in retail
products in respect to other banks
= To assess and evaluate the growth trends in retail products among other banks
= To observe the working environment in commercial banks
1.6 Scope of the Study
The report covers retail banking services, activities, procedures and Retail Finance
Center (RFC) of The City Bank Limited. This report especially emphasizes on the
different categories of the retail products and their characteristics.
1.7 Methodology
In order to make this report more meaningful and presentable data are collected from
two sources-
The nature of this report is descriptive with some survey or using sampling method,
observation method us used to complete this quantitative research. Most of the necessary
information has been collected by face-to-face interviews and questionnaire responses of
the clients, officers working in different departments, circulars sent by the Head Office
and maintaining daily diary, which contains all the activities observed in the bank. My
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Retail Products, with special focus on Retail Finance Center (RFC)
questionnaire was mainly focused on retail product. The questionnaire was designed in a
way to get the insight of the customers, to rate the products positioning of CBL and the
changes in the customers wants.
1.7.1 Primary Sources:
Most of the information was acquired by direct discussing with the officers
Informal conversation with the clients
Interview, observation and work experience with different divisional in-charges
and suggestions of many executives of the bank
Statistical tools like open ended questionnaire and Survey on different 50
peoples were used to analyze the data collected from various sources.
1.7.2 Secondary Sources:
Annual Report 2009 of The City Bank Limited
Bangladesh Bank Circulars
Various books, booklets, website, published documents, office circulars, articles,
compilations etc
Instruction circular of Head Office, brochures of different banks, newspapers and
magazines regarding banking issues, seminar papers and so on

1.8 Method of Analysis
Research Intend:
A research design is the determination and statement of the general research approach
or strategy adopted for the particular project.
Gist:
A research design is purely and simply the framework or plan for a study; the guides,
collection and analysis of the data. It is blue print that is followed in completing a
study.
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Retail Products, with special focus on Retail Finance Center (RFC)
1.9 Limitation of the Study
Some limitation barriers were faced while concluding the study. Some limitations the
author had to face in the completion of the report were:
Work pressure in the office was another limitation restricting this report from
being more detailed or analytical
It was difficult to communicate with the Officials, as many of them were
very hesitate to response.
Relevant papers and documents were not available sufficiently, which could
aid me in writing the paper more lucidly
Researcher faced enormous problem while constructing datas because these
are not well organized
There is lacking of adequate data and information on the relevant topic as
these data are treated as very much confidential
To prepare such report it is needed more time, but the report is made only
within the three months time period
Due to lack of experience, there may have been faults in the report though maximum
efforts have been given to avoid any kind of mistake. In spite of all these limitations, I
have tried to put the best effort as far as was possible.

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Retail Products, with special focus on Retail Finance Center (RFC)
2.1 History of Bank
When money became an accepted medium of exchange, the need arose to keep the
money safe. In addition, some people needed to borrow money. These needs led to the
development of banks. The earliest banking records, dated around 2000 B.C., indicate
that Babylon had a highly developed banking system. Babylonian banks were not unlike
the banks of today, except that you might say they had a monopoly. Many years later, in
the sixth century B.C., the first private bank emerged.
Like today's bank, it accepted for deposit money on which it paid interest. It also lent
money to persons who needed the money for worthwhile purposes and who repaid the
borrowed funds with interest. By the fourth century B.C., Greece was the dominant
nation in the world. Private and city-state-owned banks existed in the outlying lands of
the Greek Empire, but only privately owned banks were allowed in Greece. Government
to a great extent regulated those banks; however, Rome then became the dominant
empire. Under early Roman law, banks could only be privately owned, but they were
regulated by law.
With the fall of the Roman Empire, banking became essentially illegal until the third
century A.D. By the fourteenth century, when trade routes were being developed,
privately owned banks were once again allowed. And by the fifteenth century, banks
were needed to advance the huge sums of money required to send out ships to bring
back valuable commodities such as spices, silk and gold. At this time in history, banking
was big business.
2.2 Banking Scenario in Bangladesh
The banking in Bangladesh has passed three decades through different policy
environments and comprises central bank at the apex, nationalized commercial banks
(NCBs), private commercial banks (PCBs), foreign commercial banks (FCBs) and
specialized financial institutions. In the decade of seventies, in an atmosphere of fully
regulated banking, the nationalized commercial banks played the active role in
intermediation and allocation of credit along with the specialized financial institutions.
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Retail Products, with special focus on Retail Finance Center (RFC)
The decade of the eighties witnessed the active operation of both the NCBs and PCBs
(local and foreign) in the banking sector. Before liberation of Bangladesh in 1971, the
total banking system was private owned, urban-based and profit oriented. But after the
liberation, the Government of Bangladesh nationalized all the banks operating in
Bangladesh in 1972, except a few foreign banks branches. It was due to the economic
policy of Pakistan Government that we were having a privatized banking structure, till
the independence of Bangladesh in 1971.
Therefore, under such a situation, Bangladesh Government had no other alternative but
to take up the control and nationalize the enterprises including the banks. Following
nationalization, the government also recognized the existing commercial banks into six
(6) distinct new banks in the following manner in terms of the Bangladesh Banks
(Nationalization) Order, 1972:
Source:
Khan, Mohammad Khalid, Banking System in Bangladesh: 1972-1982
The Bangladesh Times, March 20, 1982
2.3 Overview of The City Bank Limited
Existed Banks Reorganized Bank
= The National Bank of Pakistan
= The Bank of Bahawalpur Ltd.
Sonali Bank
= The Habib Bank Ltd.
= The Commerce Bank Ltd.
Agrani Bank
= The United Bank Ltd.
= The Union Bank Ltd.
Janata Bank
= The Standard Bank Ltd.
= The Australasia Bank Ltd.
Rupali Bank
= The Eastern Mercantile Bank Ltd.
Pubali Bank
= The Eastern Banking Corporation Ltd.
Uttaras Bank
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Retail Products, with special focus on Retail Finance Center (RFC)
City Bank is one of the oldest private Commercial Banks operating in Bangladesh. It is a
top bank among the oldest five Commercial Banks in the country which started their
operations in 1983. The Bank started its journey on 27th March 1983 through opening
its first branch at B.B. Avenue Branch in the capital of Dhaka city. It was the visionary
entrepreneurship of around 13 local businessmen who braved the immense uncertainties
and risks with courage and zeal that made the establishment & forward march of the
bank possible. Those sponsor directors commenced the journey with only Taka 3.4 crore
worth of Capital, which now is a respectable Taka 330.77 crore as capital & reserve.
City Bank is among the very few local banks which do not follow the traditional,
decentralized, geographically managed, branch based business or profit model. Instead
the bank manages its business and operation vertically from the head office through 4
distinct business divisions namely
Corporate & Investment Banking
Retail Banking (including Cards)
SME Banking &
Treasury & Market Risks.
Under a real-time online banking platform, these 4 business divisions are supported at
the back by a robust service delivery or operations setup and also a smart IT Backbone.
Such centralized business segment based business & operating model ensure specialized
treatment and services to the bank's different customer segments.
The bank currently has 84 online branches spread across the length & breadth of the
country that include a full fledged Islami Banking branch.
Besides these traditional delivery points, the bank is also very active in the alternative
delivery area. It currently has 74 ATMs of its own; and ATM sharing arrangement with
a partner bank that has 725 ATMs in place; SMS Banking; Customer Call Center;
Interest Banking and so on. The bank has a plan to end the current year with 100 own
ATMs.
City Bank is the first bank in Bangladesh to have issued Dual Currency Credit
Card. The bank is a principal member of VISA international and it issues both Local
Currency (Taka) & Foreign Currency (US Dollar) card limits in a single plastic. VISA
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Retail Products, with special focus on Retail Finance Center (RFC)
Debit Card is another popular product which the bank is pushing hard in order to ease
out the queues at the branch created by its astounding base of some 400,000 retail
customers. The launch of VISA Prepaid Card for the travel sector is currently underway.
City Bank prides itself in offering a very personalized and friendly customer service. It
has in place a customized service excellence model called GAP (Graceful-Appropriate-
Pleasing) that focuses on ensuring happy customers through setting benchmarks for the
bank's employees' attitude, behavior, readiness level, accuracy and timelines of service
quality.
City Bank is one of the largest corporate banks in the country with a current business
model that heavily encourages and supports the growth of the bank in Retail and SME
Banking. The bank is very much on its way to opening many independent SME centers
across the country within a short time. The bank is also very active in the workers'
foreign remittance business. It has strong tie-ups with major exchange companies in the
Middle East, Europe, Far East & USA, from where thousands of individual remittances
come to the country every month for disbursements through the bank's large network of
84 online branches.
The current senior management leaders of the bank consist of mostly people form the
multinational banks with superior management skills and knowledge in their respective
"specialized" areas. The bank this year, is celebrating its 28
th
year of journey with the
clear ambition of becoming the no.1 private commercial bank in the country in 3 years
time. The newly launched logo and the pay-off line of the bank are just one initial step
towards reaching that point.
2.4 Slogan

Making sense of money
2.5 Vision
To be the leading commercial bank in the country and contribute maximum to the
welfare of the people of the country
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Retail Products, with special focus on Retail Finance Center (RFC)
2.6 Mission
To enjoy the trust and confidence of the customers through cultivation of
relationship banking.
To contribute to the socioeconomic development of the country.
To attain highest level of customer satisfaction through extension of services by
dedicated and motivated team of professionals.
To maintain continuous growth of market share ensuring quality.
To maximize banks profit by ensuring its steady growth.
To ensure participative management system and empowerment of human
resources.
To maintain the high moral and ethical standard.
To nurture an enabling environment where innovativeness and performance is
rewarded.
2.7 Objectives
To earn customer satisfaction through diversified banking activities and introduction of
innovative banking.
2.8 Goal/ Efforts
To achieve our above goals through fully motivated, committed and dedicated work
force.

2.9 City Branches
CBL is one of the fastest growing banks in Bangladesh. Now 84 branches are operating
all over Bangladesh.
Division Branches
Dhaka 37
10
Deposit
Current Account
Savings Account
City Onayash
CityShomridhdhi
City Projonmo
City Ichchapurun
STD
FDR
Deposit
Current Account
Savings Account
City Onayash
CityShomridhdhi
City Projonmo
City Ichchapurun
STD
FDR
Retail Products, with special focus on Retail Finance Center (RFC)
Chittagong 15
Comilla 6
Sylhet 9
Bogra 10
Khulna 7
The network of CBL engages itself for providing best quality banking service in retail,
commercial, corporate and Islamic banking segments. The countrys top enterprises,
multinational and local corporations and financial institutions are served by CBL. With a
total asset of BDT 48,755 million, CBL is among the top performing local banks in
Bangladesh.
3.1 What is City Retail?
One of the most remarkable success stories of last 50 years banking industry globally
has been the conceptualization and innovative execution of banking with individual
customers, their friends & families. The industry has termed it as Retail Banking or
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Deposit
Current Account
Savings Account
City Onayash
CityShomridhdhi
City Projonmo
City Ichchapurun
STD
FDR
Deposit
Current Account
Savings Account
City Onayash
CityShomridhdhi
City Projonmo
City Ichchapurun
STD
FDR
Retail Products, with special focus on Retail Finance Center (RFC)
Personal Banking or Consumer Banking; and it has now - at a very rapid pace become
the major revenue line for most of the top banks in the world.
City Bank, too, recently has started its journey in Retail Banking.
City Retail - add a little city to your life is the new brand-mantra, the pay-off line for
City Retail.
Our aim is clear. We want City Bank to become the most preferred bank to all individual
clientele of the country, at least of the cities and towns where we operate. We want to
provide our customers the best-in-class services, innovative products and financial
solutions from smart outlets - all with a big smile that conveys and generates happiness
all the way!
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Deposit
Current Account
Savings Account
City Onayash
CityShomridhdhi
City Projonmo
City Ichchapurun
STD
FDR
Deposit
Current Account
Savings Account
City Onayash
CityShomridhdhi
City Projonmo
City Ichchapurun
STD
FDR
CARD
Debit Card
VISA Electron
Credit Card
VISA Classic Local
VISA Classic Dual
VISA Gold Local
VISA Gold Dual
CARD
Debit Card
VISA Electron
Credit Card
VISA Classic Local
VISA Classic Dual
VISA Gold Local
VISA Gold Dual
NRB
Foreign Remittance
NRB
Foreign Remittance
Retail
Products
Retail
Products
Loan
City Drive
City Solution
City Express
Loan
City Drive
City Solution
City Express
Retail Products, with special focus on Retail Finance Center (RFC)
3.2 Deposit (Liability) Product
City Bank offers a wide variety of deposit products to meet financial needs of the
customers. From current and savings accounts to Fixed Deposits and Pension Schemes
each account is designed to give the best value for making money.
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Retail Products, with special focus on Retail Finance Center (RFC)
Retail deposit products of City Bank are as follows:
3.2.1 Current Account
Our current account meets the needs of individual and commercial customers through
our schedule benefit.
Minimum balance : Taka 10,000/-
Interest Rate : Nil
Customer Benefit:
Cheque-book facility
Opportunity to apply for - safe deposit locker facility
Collect foreign remittance in both T.C. & Taka draft.
Transfer of fund from one branch to another by
o Demand Draft
o Mail Transfer
o Telegraphic Transfer
Transfer of fund on Standing Instruction Arrangement
Collection of cheques through Clearing House.
Online banking service.
3.2.2 Savings Account
It is a sound savings for retail customer. We give the major facilities and services to our
customer through 77 branches allover in Bangladesh with our skilled manpower.
Minimum balance : Taka 200/-
Interest Rate : 4
Customer Benefit:
Cheque-book facility
Opportunity to apply for - safe deposit locker facility
Utility payment service
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Retail Products, with special focus on Retail Finance Center (RFC)
Collect foreign remittance in both T.C. & Taka draft.
Transfer of fund from one branch to another by
o Demand Draft
o Mail Transfer
o Telegraphic Transfer
Transfer of fund on Standing Instruction Arrangement
Collection of cheques through Clearing House
Online banking service
3.2.3 City Onayash
City Onayash earn easy on your savings
account, earn profit every month!
City Onayash is a unique kind of savings
account which calculates interest on your
daily balance and pays interest to you
every month.
It is a major departure from the
conventional savings account available
in the market. All such accounts calculate interest on the average or lowest balance of
the month, while City Onayash does on daily product basis. Not only that, while those
conventional savings accounts pays interest only twice a year - in December and June -
City Onayash pays it to you every month. Happiness at each month end!
Eligibility:
o Age: At least 18 years
o Nationality: Bangladeshi
Availability:
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Retail Products, with special focus on Retail Finance Center (RFC)
All 84 of City Bank branches spread across the country.
What you need to do:
Just fill up the City Onayash account opening form and hand it over to our branch staff.
Thats it! Enjoy saving in a unique way!
Special Feature:
Withdraw and deposit cash as you wish without at all having your monthly interest
earning eligibility.
No hidden or undisclosed fees or charges or profit-cutting
Interest forfeiture rules of a common conventional savings account do not apply
here. So, stay tension-free-100%
Every months interest earning goes into your account automatically.
Interest Rate: 4%
3.2.4 City Shomridhdhi
City Shomridhdhi - A unique offer from
City Bank
City Shomridhdhi is an exceptional DPS
product that is distinctly more attractive than
the prevalent DPS products in the market.
You receive a hefty sum at the end of the
term against your monthly deposit of small
installments. It's a perfect way to secure your
financial future!
Eligibility:
o Age: At least 18 Years
o Nationality: Bangladeshi
Features:
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Retail Products, with special focus on Retail Finance Center (RFC)
No initial deposit required
Monthly installment deposit ranges from Tk. 500 to Tk. 20,000
Flexible tenor of 3, 5, 7 and 10 years
On premature encashment, you get the maturity value of nearest term - not the
routine savings rate
Interest rate 8.5%

3.2.5 City Projonmo
City Projonmo financial safety for your future generations backed by complete
immense protection!
City Projonmo is a unique monthly deposit scheme that you open for your kids to
safeguard their future against all uncertainties and risks. As a guardian of the child you
can open this account which builds great & unmatchable savings for you over the years.
By the time your child is past his or her school age, there is this sufficient cash in your
hand to take care of his / her higher education, marriage or other such large expenses.
However, the most interesting part of this scheme is the full insurance protection that
you automatically enjoy. This simply means, in case of death or total physical collapse
of the parent or guardian, the bank will pay the full value of the scheme for the full term
no matter in reality how many months or years have been actually completed by you.
Eligibility:
o Age: At least 18 years
o Nationality: Bangladeshi
You will have to have a savings or current account in your name in order to operate your
City Projonmo account.
Availability:
All 83 branches of City Bank spread across the country.
What you need to do:
Just fill up the City Projonmo account opening form. Submit it to the branch. And thats
it! Enjoy earning for your junior ones!
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Retail Products, with special focus on Retail Finance Center (RFC)
Profitability Matrix
Term Interest Rate
3 (Three) Years 8.50%
5 (Five) Years 8.75
10 (ten) Years 8.75%
15 (fifteen) Years 8.75%
20 (Twenty) Years 8.75%
3.2.6 City Ichchapurun
City Ichchapurun great opportunity
to earn against your savings every
month!
This product allows you to earn
interest and enjoy interest every
month that accrues in your fixed
deposit account, no matter what the
term of the deposit is. It helps make
your financial planning more disciplined, and your life more organized. While your
fixed deposit remains untouched and well-kept for future, you keep on getting the profit
on a monthly basis. What better way to take care of your monthly recurring expenses
like childrens education or school fees, house tutors remuneration, utility bill payments,
saving money in some DPS scheme?
Eligibility:
o Age: At least 18 years.
o Nationality: Bangladeshi
Availability:
All 83 of City Bank branches spread across the country.
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Retail Products, with special focus on Retail Finance Center (RFC)
What you need to do:
Just fill up the City Ichchapurun account opening form. Deposit your money. And now
keep enjoying the fixed deposit interest every month. Enjoy earning!
And remember, there is the scope of getting personal loan worth up to 90% of your City
Ichchapurun value! ]
Profitability Matrix
3.2.7 Short Term Deposit (STD)
STD is also a special scheme offered by City Bank Limited for the savings of customers.
Features:
Initial deposit: Tk. 100,000
Interest rate : 6%
3.2.8 Fixed Deposit
If you believe in long-term investments and wish to earn higher interests on your
savings, NOW is the time to invest your money in our Fixed Deposit.
Fixed Deposit Rate:
Fixed deposit is a scheme for the savings of the customers .The minimum amount of
deposit in this scheme is Tk. 50,000.
Term Interest Rate
Term Interest Rate
1 (One) Year 8.50
2 (Two) Years 8.50
3 (Three) Years 8.50
5 (Five) Years 8.50
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Retail Products, with special focus on Retail Finance Center (RFC)
1 month 10%
3 months 12% (For below Tk 3 Crore)
13% (For Above- Tk 3 Crore)
6 months 12% (For below Tk 3 Crore)
13% (For Above- Tk 3 Crore)
1 year 12% (For below Tk 3 Crore)
13% (For Above- Tk 3 Crore)
3.3 Loan (Assets) Product
The City Bank Ltd. also provides some loan products which are being described below:
3.3.1 City Drive
Owning a car is no longer a luxury. Car
for your family is now a matter of
fulfilling a necessity. Appreciating that
basic need, City Bank introduces City
Drive, a tailor-made auto loan scheme
for individuals.
Description of City drive
Purpose
Purchase value new and reconditioned Car, Jeep, Station Wagon, 4-
Wheeler, Microbus for private use only:
- Brand new-any brand at purchasers choice
- Reconditioned-Toyota brands preferred. Cars older than 4
years will treat as an exception.
- Purchase value refers to car price as quoted by the Vendor
and may include VAT and Registration cost. However, it
does not include comprehensive insurance cost that is on
purchasers account.
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Retail Products, with special focus on Retail Finance Center (RFC)
Availability All CBL branches subject to CPV being in place
Loan Amount
(minimum and
maximum)
- Minimum TK. 300,000/-
- Maximum TK. 20, 00,000/- or 15 times of gross monthly
income, whichever is lower. (Maximum Loan allowable for
purchase of very high value or premium vehicles was TK. 1,
00 crore, however Bangladesh Bank fixed loan ceiling of
TK 20 lac recently. So, maximum amount will be TK 20 lac
from the publication of this circular.)
Interest Rate
(Interest rates
can be
changed by
ALCO from
time to time
based
Loan cash
coverage
100%
Loan cash
coverage 75%
Loan cash
coverage 50%
Unsecured
12.75% 13.00% 14.00% 15.00%
Processing
Fee
1.00% of the loan amount for all cases other than 100% cash
secured. For 100% cash secured cases, it is 0.5% of the loan
amount.
Loan vehicle
Piece Ratio
100% cash covered: 100% of quotation price
75% cash covered: 100% of quotation price
50% cash covered: 100% of quotation price
0% cash covered: New 75% Recondition 70%
(Price includes car value + VAT + Registration)
Customer will bear comprehensive insurance cost.
Tenor
Reconditioned Vehicles above 3
years old
Brand New and 3 years
reconditioned Vehicles
12-48 month 12-60 months
-On loan being sanctioned, Vendor will register the car on behalf of
City Bank Ltd. Vendor also collects the copy of the comprehensive
insurance (Insurance company from CBL approved list) and
submits both the documents along with the delivery Challan for the
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Retail Products, with special focus on Retail Finance Center (RFC)
Disbursement
car to CBL.
- CASA (in case of new customer, a current/savings account will be
opened in customers name).
-RFC will disburse Loan amount through CASA.
On email confirmation from RFC, branch will issue P.O favoring
vendor by debiting CASA. P.O will include only the loan amount
portion of total quotation amount (i.e. excluding borrowers
equality) Branch to ensure PO commission and VAT will deduct
from customer CASA. R.M will organize to send the P.O to the
vendor.
Repayment - System will auto debit installment from customers CSAC
account.
Advance
/Partial pre
payment
- Allowed after 6 month. At least minimum 30% of the loan
outstanding must be paid by the customer while making
advance/pre-payments amount.
- Fee: 1% of the partial payment amount.
Early payment
fee
- Early full and final settlement is allowed. A charge for early
full and final settlement is flat 1% of the outstanding loan
amount.
Installment
failure charge
- Penal interest of 3% p.a. on the dues amount.
Stamp charge
- All relevant stamp charges will be on borrowers account
and will be debited from the account at the time of
disbursement
Top-ups
- Customer can avail more than 1 loan from CBL if income
and DBR supports [Separate, new loan account will be
created in the case of top-up, i.e, will not be an additional
draw down over existing loan account]
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Retail Products, with special focus on Retail Finance Center (RFC)
Personal
Guarantee
- One [1] Personal Guarantee for salaried executive.
- One [1] Personal Guarantee for businesspersons and self
employed.
- A guarantor can provide personal guarantee once only for
any CBL consumer loan.
- Eligibility of guarantor:
Individuals with ranges equivalent Senior Assistant Secretary or
higher would qualify as grantor.
Bank and NBFI officials (equivalent to AGM of NCBs, AVP/
Branch Manager, Department Head of Local and Foreign Banks and
NBFIs),Professional (Doctors, Engineer, Chartered Accountants
etc.) have to provide copy of their professional certificate.
Features:
Loan amount ranging from Tk. 300,000 to Tk. 20,00,000
Car financing up to 90% of reconditioned or new vehicle price
Lower interest rate & up to 100% financing for loan against cash security
Interest Rate
100%Cash- 14.50 %
75% Cash- 15 %
50 % Cash- 16 %
0 % Ch Coverage17.50 %
Income Label
Single App- 30,000
Joint App- 40,000
Maximum
Eligibility
12 Times of Gross Salary
Min 2 years Job Experience
& 1 year in present Company
Tenor 350 K- 50 K-12M-48M
Above 500 K- 12M- 60M
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Retail Products, with special focus on Retail Finance Center (RFC)
Loan tenor 12 to 60 months
No hidden charges
Competitive interest rate
Loan processing fee 1% of loan amount
Eligibility:
Age: 22 to 60 years
Experience: Salaried executive total 1 year including 6 months with current
employer
Experience: Business person/professional 1 year
Monthly income: Minimum Tk. 30,000
3.3.2 City Solution
City Solution - any personal loan from
City Bank - is there to solve customers
problems and to fulfill all their dreams.
Dream Vacation? Son's admission to a
foreign university? Medical treatment?
Daughter's wedding? House
renovation?
You can access this facility from our selected branches across the country.
Description of city solution
Purpose
CBL City solution loan is an any purpose Lifestyle loan, Purpose
might be considered as follows:
- House renovation
- Interior Decoration
- Marriages in the family
- Advance rental payments
- Hospitalization or other emergency medical needs
- Trips abroad
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Retail Products, with special focus on Retail Finance Center (RFC)
- Purchase of miscellaneous household appliances
- Purchase of professional equipment like X-ray machine,
medical beds, ultra-sonogram machine, engineering/
mechanical tools
- Other legitimate purpose.
Purposes not
allowed
This loan cannot be taken for solely business purposes like working
capital and industrial machinery purchase. However, self-employed
professionals, who have private practices can avail this loan to buy
their office equipment, machines, and accessories or premise
renovation.
Availability All CBL branches subject to CPV being in place
Target
customers
Any credit worthy individuals like:
- Salaried executives
- Doctors, Architects, Engineers, Chartered Accountant,
Consultant and IT professionals
- Businessperson
Non target
customers
- Lawyer
- Journalists of reasonably lower rank
- Defense official below Lt. Colonel level
Loan Amount
(minimum and
maximum) for
A category
customers
- Minimum TK. 50,000/-
- Maximum TK. 10, 00,000/- or 12 times of gross monthly
income, whichever is lower. In addition, DBR must be
supportive with income and EMI as per our income
assessment policy. Monthly Income = Gross monthly salary
or Business income + 80% income of other proven sources
like spouse salary, rent income and so on.
Interest Rate - 18% p.a. (Interest rates can be changed by Authority from
time to time based on market situation
Processing Fee - 1.50% of the loan amount.
Repayment
Tenor
12 to 60 months (As per clients will, affordability and our credit
assessment criteria)
Disbursement Credit to the customers deposit account with us.
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Retail Products, with special focus on Retail Finance Center (RFC)
Repayment - System will be auto debit installment from customers
CASA account.
Advance
/Partial pre
payment
- Allowed after 6 month. At least minimum 30% of the loan
outstanding has to pay by customer while making
advance/prepayments amount.
Early payment
fee
- Early full and final settlement is flat 1% of the outstanding
loan amount.
Installment
failure charge
- Penal interest of 3% p.a. on dues amount.
Stamp charge - All relevant stamp charges will be on borrowers account
and will be debited from the account at the time of
disbursement
Top-ups - Customer can avail more than 1 loan from CBL if income
and DBR supports [Separate new loan account will be
created in the case of top-up, i.e., will not be an additional
draw down over existing loan account]
Personal
Guarantee
- 1 Personal Guarantee will be required for CBL City
solution Loan.
- A guarantor can provide personal guarantee once only for
any CBL consumer loan.
Eligibility of guarantor:
- Any salaried executive deemed acceptable to CBL or
- Professionals (Doctors, Chartered Accountants, and
Engineers etc) or
- Reputed Businessman acceptable to CBL
Identification Document of guarantor:
- TIN
- Photograph or business card
Waiver of
Guarantee for
Priority
Organizations
Employees
- No personal guarantee would be required for the salaried
executives of EBL priority organization list that will mainly
comprise the MNCs, Banks, and large local corporate
House.
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Retail Products, with special focus on Retail Finance Center (RFC)
Features
Loan amount ranging from Tk. 50,000 to Tk. 1000,000
Loan tenor 12 to 60 months
No guarantor required for the loan amount up to Tk. 3 lac
No hidden charges
Competitive interest rate
Processing fee 1.5%
Eligibility
Age: 22 to 60 years
Experience: Salaried executive total 1 year including 6 months with current
employer
Experience: Business person 2 years
Experience: Professional 1 year
Minimum monthly income: Salaried executive Tk. 15,000 self employed Tk.
25,000 and business person Tk. 30,000
3.3.3 City Express
Loan Processing was never easier!
City Express-a loan that you can expect to get within 48 to 72 hrs maximum. It is very
easy to get, it offers you options for repayment, and its not costly either and it allows
you to save!
We will live by our commitment and you will be able to make sense of your effort and
money.
Loan Takeover Plan
An exclusive offer for other bank's credit worthy customers who can now transfer their
personal loan outstanding to City Solution with a preferential interest rate and waiver on
processing fee
Eligibility
i. Minimum 6 loan EMI repayment with existing bank
ii. A minimum take over loan amount is Tk. 1,00,000 and maximum Tk 9,50,000
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Retail Products, with special focus on Retail Finance Center (RFC)
Benefits
o No processing fee
o No extra cost for loan takeover
o No processing fee for additional loan
o 1% reduced from City Solution interest rate
3.4 City NRB Products
By your side - all the way
The city Bank's Foreign Remittance
unit meets growing customer needs
for fast, secure & easy money
transfers to an extensive range of
destinations. Being a committed bank
to its customers, we go all the lengths
to remit your hard earned money
safely to your loved ones.
Facility
City Bank Limited has 83 online branches across the country; besides, the Bank has a
strong remittance network with other major banks of the country. Therefore, wherever
your account is, we are able to send your money instantly.
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Retail Products, with special focus on Retail Finance Center (RFC)
How to avail our Foreign Remittance Service?
If you are a City Bank account holder, then please visit any of our branches. Our Foreign
remittance service personnel will be there to help you out.
What is the encashment procedure?
CBL understands the value of your precious time. That's why have made the payment
procedure simple & easy. You have the privilege of encasing the remitted money
instantly from your branch counter without going through any hassle. That is to say, if
you are an account holder of City Bank, we can instantly credit the money to your
account or pay cash to the receiver.
So, place your trust with City Foreign Remittance Service. Send your money to your
loved ones & experience peace of mind.
3.5 City Card Product
3.5.1 Debit Card
CITY Visa Electron Debit Card - By your side,
round the clock
Now comes the Visa Debit Card from City
Bank. Your life, therefore, becomes hassle-free
and safe; and it is Visa Electron branded,
which makes you the proud owner of a
meaningful plastic.
Features:
- Cash withdrawal from 500+ Visa ATMs 24/7/365 all over the country
- Shop and dine at hundreds of merchant Visa outlets all over the country
- Balance enquiry
- Fund transfer from your account to credit card 24/7/365
- PIN Change
- Mini statement
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Retail Products, with special focus on Retail Finance Center (RFC)
- Cash withdrawal @ Taka 12 per transaction at 250+ DBBL ATMs
- Cash deposit
- Utility payment
- Purchase transaction
- It entails no extra expense, only a small annual fee will be charged
Eligibility
If you are an individual and have a savings, current or STD account in CBL, you are
eligible avail this card.
What to do
Just drop in any nearby CBL branch, collect an application form and submit duly filled
up form. Within shortest time you will get the card delivered at your mailing address or
at your designated branch.
3.5.2 VISA Shop N Cash
First time in Bangladesh & South Asia! Now you can get cash while you make
purchase of goods & services using your City Visa Electron Debit Card.
Exclusively available at your favorite outlets, Just step in and say, Give me some cash,
please.
Make more sense of your City Debit Card.
Visa Shop N Cash is given to Cardholder at the point of Sales (POS) when a transaction
is made. For example, a Cardholder makes a purchase amount of TK 2,000 and needs
TK 500 cash. HE/she can now receive the cash when the purchase is made. Cardholders
account will be debited for TK 2,500 and he/she will receive TK 500 from the cashier.
How Visa Shop N Cash works?
You make a purchase for TK 1,000
Ask for cash of TK 500
Transaction is processed and you sign the receipt for TK 1,000 purchase and TK 500
cash
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Retail Products, with special focus on Retail Finance Center (RFC)
A total of TK 1,500 will be deducted from your account
Minimum purchase amount of TK 1,000
TK 20 will be deducted for every transaction
50% of the purchase amount not exceeding TK 4,000
The Cardholder authorizes the transaction at POS by signing the receipt from POS
terminal.
3.5.3 Credit Card
City Bank is the first bank to issue Dual
Currency Credit Card in Bangladesh. This card
enables you simultaneous usage of your card
both in home and in abroad. You do not need to
carry two different cards for the same purpose.
Description of credit card
Purpose
CBL City solution loan is an any purpose Lifestyle loan, Purpose
might be considered as follows:
- House renovation
- Interior Decoration
- Marriages in the family
- Advance rental payments
- Hospitalization or other emergency medical needs
- Trips abroad
- Purchase of miscellaneous household appliances
- Purchase of professional equipment like X-ray machine,
medical beds, ultra-sonogram machine, engineering/
mechanical tools
- Other legitimate purpose.
Purposes not
allowed
This loan cannot be taken for solely business purposes like working
capital and industrial machinery purchase. However, self-employed
professionals, who have private practices can avail this loan to buy
their office equipment, machines, and accessories or premise
renovation.
Availability All CBL branches subject to CPV being in place
Any credit worthy individuals like:
- Salaried executives
- Doctors, Architects, Engineers, Chartered Accountant,
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Retail Products, with special focus on Retail Finance Center (RFC)
Target
customers
Consultant and IT professionals
- Businessperson
Non target
customers
- Lawyer
- Journalists of reasonably lower rank
- Defense official below Lt. Colonel level
Loan Amount
(minimum and
maximum) for
A category
customers
- Depend on customer income.12 times of gross monthly
income, whichever is lower. In addition, DBR must be
supportive with income and EMI as per our income
assessment policy. Monthly Income = Gross monthly salary
or Business income + 80% income of other proven sources
like spouse salary, rent income and so on.
Features:
o Variable Interest Rate
o EMI Plan
o Balance Transfer
o Round the clock cash withdrawal facility at any Visa branded ATM throughout the
world
o Round the clock purchasing power for goods and services at any Visa branded
POS outlet
o 24% interest on Cash Advance
o No cash Advance fee at CITY ATMs
o Lowest Annual/Renewal Fee
o International Roaming facility
o Internet Transaction*
o Convenient Repayment option
o E-statement
o Limited Lost Card Liability
o Secured with your Photo Card
o 24 hours customer service help desk
Eligibility:
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Retail Products, with special focus on Retail Finance Center (RFC)
Bangladeshi Nationals
Age range for primary card holder is 18 years to 60 years
Age range for supplementary card holder is 18 year to 60 years
Age bar can be relaxed for secured cards
Minimum Gross Monthly Income(GMI) for silver card Tk 12,000
Minimum Gross Monthly Income(GMI) for gold card Tk 30,000
Minimum 6 month permanent employment for salaried executives and 1 year of
experience in business or practice for self employed professionals and business
person
3.6 Other Credit Cards
= VISA Local Classic
= VISA Classic Dual
= VISA Gold Local
= VISA Gold Dual
= Variable Interest Rate
= Balance Transfer
= City Card EMI Plan
3.6.1 VISA Local Classic
This is a local Visa Credit Card which is valid only in Bangladesh.
It can only be used in local currency (BDT) within the country. This type of credit card
has a limit ranging from BDT 10,000 to BDT 49,999. This type of card has designed for
medium earner category customers.
Usage:
Local Classic/Silver Card (For Domestic use only)
Limit:
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Retail Products, with special focus on Retail Finance Center (RFC)
Local Classic/Silver Card BDT 10,000, BDT 49,999
3.6.2 VISA Classic Dual
This is basically one plastic that has dual options to make transaction in two currencies.
Its acceptance jurisdiction is in country and outside country in BDT and USD
respectively. Classic dual is for the medium earner category customers. Its credit limit is
USD 100 to 1000 and BDT 10,000 to BDT 49,999.
Usage:
Dual Classic/Silver Card (For both International & Domestic use)
Limit:
Dual Classic/Silver Card BDT 10,000 BDT 49,999 + US$ 500, USS$ 1,999
3.6.3 VISA Gold Local
This type of card is taka card of which acceptance jurisdiction is only in Bangladesh and
transaction currency is BDT. The differences between these two cards are higher credit
limit than classic card. Credit limit of Visa Gold card is ranging from BDT 50,000 to
BDT 5, 00,000. This type of card has been designed for the higher earner category
customers.
Usage:
Local Gold Card (For Domestic use only)
Limit:
Local Gold Card BDT 50,000, BDT 500,000
3.6.4 VISA Gold Dual
This is a high value dual card remaining other features same with classic dual. Gold dual
is also for the higher earner category customers and its credit limit is USD 1,001 to 4000
and BDT 50,000 to BDT 500,000. A secured dual cards limit will be maximum USD
28,000 against lien on RFCD or ERQ account.
Usage
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Retail Products, with special focus on Retail Finance Center (RFC)
Dual Gold Card (For both International & Domestic use)
Limit
Dual Gold Card BDT 50,000 - BDT 500,000 + US$ 2,000, US$ 3,000
3.7 Variable Interest Rate
Variable Interest Rate is the application of different interest rate based on the transaction
volumes done through your CBL credit card. The more you do transact with CBL credit
card, the less interest rate you are charged on your transaction amount.
In Bangladesh, we are the first bank to care for your volume of transactions you do with
your credit card.
Program Dynamics:
We are offering below two types of interest rates for our cardholders:
Premium Rate
Standard Rate
Each and every transaction you do with your credit card, we give you this flexibility of
paying less interest. It may be a purchase, a cash withdrawal, a balance transfer, a card
cheque transaction (upcoming) or an installment payment.
A. Purchase
1. Premium rate: Interest Rate - 25.99% Purchase O/S amount: BDT 50,000 or
USD 750 and above
2. Standard rate: Interest Rate - 30.00% Purchase O/S amount: BDT Less than
50,000 or USD 750
B. Cash Withdrawal
1. Premium rate: Interest Rate - 21.99% Cash Withdrawal O/S amount: BDT 50K
and above
2. Standard rate: Interest Rate - 24% Cash Withdrawal O/S amount: Below 50K
C. Balance Transfer
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Retail Products, with special focus on Retail Finance Center (RFC)
1. Premium rate: Interest Rate - 21.99% BT amount: BDT 50K and above
2. Standard rate: Interest Rate - 25.00% BT amount: Below 50K
D. Installment Payment:
1. Premium rate: Interest Rate - 16.99% Installment total amount: BDT 50K and
above
2. Standard rate: Interest Rate - 18.99% Installment total amount: Below 50K
3.8 Balance Transfer
It's an exclusive offer for other bank credit cardholders from CBL. Credit card market
has been bloomed. A monopolistic competition is still going on in the credit card
market. Many new players already accessed to the market. Meanwhile potential
segments of the market have been acquired by them. They are charging very high fees
and interest to their cardholders. It is observed from a survey that too high fees and rate
of interest is the main cause of dissatisfaction of their cardholders.
Program Dynamics:
This is a unique offer for the other bank credit cardholders to transfer their total
or desired debt/outstanding amount of their credit card to CBL credit card under
this program.
A processing fee will be charged @ of 1% or a fixed amount on the outstanding
amount which ever is higher. For Visa Classic it is BDT 500 and Visa Gold BDT
1000.
A minimum balance transfer amount is BDT 10,000 and maximum BDT 4,
80,000
CBL will pay the outstanding amount by pay order or cheque at a time to
previous issuer.
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Retail Products, with special focus on Retail Finance Center (RFC)
CBL may issue a higher limit to the cardholder and it is sole discretion of CBL.
Eligibility for BT:
Age of the previous card must be at least 6 months
No late fee more that once over the last 3 months
No over limit more than once over the last 3 months
Card status should be open
Card limit in case of BT should be ideally equivalent or more than the existing
card outstanding
BT amount is to be transferred by card operation through issuance of banker's
cheque/ pay order in favor of customer's existing bank
BT Application Process:
The applicant has to fill out the credit card application form along with a balance
transfer form. CBL existing card holders no need to fill out the credit card application
form.
RFC will do CPV as per our policy. Credit limit will be assessed based on the financial
documents provided by the applicant. Extra limit may be allowed if it is permitted as per
income criteria followed by the given documents.
Credit analysts must check the required documents and the special criteria for BT such
as age of the previous card must be at least 6 months, no late fee more than once over
the last three months, no over limit more than once over the last three months, card
status open etc. If every thing okay than approve the BT as per policy.
Pre-Closure:
(In case of transferring BT to Installment Payment) The cardholder has the option of
early settlement of the BT Loan amount provided that he pays a pre-closure fee of
3.00% of the transfer amount or BDT 500 whichever is higher.
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Retail Products, with special focus on Retail Finance Center (RFC)
3.9 City Card EMI Plan
CITY Card EMI plan is an installment plan that allows cardholder the flexibility to
convert any retail purchase transaction into an installments scheme where the cardholder
pays back the amount at a rate of interest as low as 16.99% per annum over a tenor
ranging from 6 months to 36 months. The customer enjoys the flexibility to buy high
value items on The City Bank credit card and conveniently pay in monthly installments
at a lower interest rate. The minimum transaction amount eligible for an installment plan
is BDT 3,000.
Program Dynamics:
The installment plan is flexible in terms of:
1. Product Covered: All BDT credit cards of The City Bank (i.e. Visa Local Classic
and Local Gold) are eligible for Flexi pay.
2. Transaction: Any retail transaction with an amount of BDT 3,000 or above can be
transferred to the flexi pay scheme.
3. Tenor/Payment Options: The cardholder can pay back the amount over a period
ranging from 6 months to 36 months, depending on his preference. The installment
payment options are 6, 12, 18, 24, 30 or 36 months.
4. Opening Fee: No opening fee/joining fee will be charged for flexi pay.
5. Interest Rate: The interest rate on flexi pay will be variable as proposed in
Variable APR per annum compared to regular 30% per annum.
6. Number of Flexi Pay entitlement: The flexi pay transaction amounts are capped
at the cardholder's limit level and there are no restrictions on the number of flexi
pay schemes that a cardholder can avail of as long as each transaction amount is
equal to or above BDT 3,000.
7. Simple: The cardholder has to fill out the Installment Payment Application form
and send it to cards customer services.
The transaction amount should be multiplied with the payback factor and
then the total amount should be divided by the number of months (i.e.
installment) selected to arrive at the EMI (Equal Monthly Installment).
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Retail Products, with special focus on Retail Finance Center (RFC)
Minimum due amount calculation: While calculating the minimum due
amount system will calculate the full amount of installment transferred from
installment account + 5% of other total transaction amount.
8. Pre-Closure: The cardholder has the option of early settlement of the Installment
Loan amount provided that he pays a pre-closure fee of 3.00% of the transfer
amount or BDT 500 whichever is higher.
9. Delinquency Level and Auto-cancellation: Flexi pay facility will cancel
automatically when the credit card account reaches 120 DPD (arrears level) and
the entire loan amount will get transferred to the card account and become fully
due.
10. The flexi pay form is verified by the cards customer service manager or designated
person at branches and then forwarded to of card operations to transfer the
transaction amount into Installment Plan.
Payback factors
Tenor Less than BDT 50,000 More than 50,000
6 months 1.09495 1.08495
12 months 1.18990 1.16990
18 months 1.28485 1.25485
24 months 1.37980 1.33980
30 months 1.47475 1.42475
36 months 1.56970 1.50970
3.10 American Express Credit Card
City Bank has launched American Express Credit Card and American Express Gold
Credit card in November 2009. City Bank is the local caretaker of the brand and is
responsible for all operations supporting the issuing of the new credit cards, including
billing and accounting, customer service, credit management and charge authorizations,
39
Retail Products, with special focus on Retail Finance Center (RFC)
as well as marketing the cards in Bangladesh. Both cards are international cards and
accepted by the millions of merchants operating on the American Express global
merchant network in over 200 countries and territories including Bangladesh. City Bank
also introduced exclusive privileges for the card members under the American Express
Selects program in Bangladesh. This will entitled any American Express card members
to enjoy fantastic savings on retail and dining at some of the finest establishment in
Bangladesh. It also provides incredible privileges all over the globe with more than
13,000 offers at over 10,000 merchants in 75 countries.
The American Express Gold Credit Card the Card that gives you exclusive privileges
and unsurpassed benefits to support your lifestyle needs
Complimentary tickets to Kolkata
You can get one complimentary companion air ticket to Kolkata on Jet Airways.
Cash-back at Agora
Watch your savings add up as with 6% cash-back on all monthly purchases whenever
you shop at Agora Superstores
Complimentary companion buffet at Westin
Treat your loved ones, everyday, seven days a week at Westin Dhaka. Cardmember
receives a complimentary buffet whenever he/she dines with a companion at Seasonal
Taste Restaurant at The Westin Dhaka.
American Express Selects
TM

Take advantage of special savings and offers in some of your favourite restaurants and
shops in Bangladesh and across the globe.
Financial flexibility
You can charge everyday expenses and manage your finances by having the flexibility
to pay your balance over time.
7% savings from GMG Airlines
40
Retail Products, with special focus on Retail Finance Center (RFC)
Enjoy 7% savings on base ticket fare (excluding TAX & surcharges) from GMG
Airlines on all domestic and international flights.
Benefits
Complimentary companion return ticket from Dhaka to Kolkata on Jet Airways
Complimentary companion buffet round the year at Seasonal Taste, The Westin
Dhaka
Complimentary access to City Bank American Express Lounge at Hazrat
Shahjalal Int'l Airport
Complimentary access to country's first Fast Track channel at Hazrat Shahjalal
Int'l Airport immigration
6% cash back at Agora Superstores
Travel Emergency & Medical Assistance abroad
Double Benefit City Shield & All Accident Insurance
Fantastic dining delights and shopping deals with American Express SELECTS
Special privilege health check-ups and other facilities at Square Hospital
Special savings of 20% on pathological tests, 10% on radiological tests, 5% on
room accommodation & 10% on preventive health screening packages at United
Hospital
Make purchases at 0% interest with the FlexiBuy program, instalment plans
range from 3 to 12 months
Enjoy 7% savings on the base ticket fare on all GMG airlines' domestic and
international flights
3.11 American Express Corporate Card
There is a better way to manage expenses. American Express Corporate Card
programs enhance control throughout the purchasing and payment process and provide
the options and tools you need to manage your program efficiently. The bottom line:
American Express Corporate Card programs help deliver significant savings across key
expense categories.
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Retail Products, with special focus on Retail Finance Center (RFC)
We work with our customers to design world-class expense management programs to
meet their needs. This is provided alongside a product set unmatched in the industry for
its depth and breadth.
Our City Bank American Express Corporate Card provides our customers with a
convenient global solution to capture all travel and related business expenditure. It
provides a straight-forward solution, which is critical for monitoring business spend.
Greater Savings
Visibility of spend via standard and customized management information
which will assist you to identify savings opportunities and leakage
Comprehensive supplier and industry reports, enabling you to drive spend
compliance enabling you to exert more negotiating power over suppliers
Improved cash flow, with an interest free repayment period of up to 50 days
and a reduction of in cash advances
Unrivalled Relationship Management
Dedicated Account Management providing superior support to effectively
support our Customers in the management of their expense management
programs. Account Managers will help you evaluate and grow your program
ensuring you receive maximum benefits.
Dedicated Corporate Administrator Servicing in your local language, these
specialists are there to work directly with your Corporate Administrators and
help them in the day-to-day running of the program.
City Bank American Express Corporate Cardmember Benefits
American Express has always represented certain values security, reliability and
prestige and these are reflected in the City Bank American Express Corporate Card,
available to your employees.
Travel Benefits
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Retail Products, with special focus on Retail Finance Center (RFC)
Global Acceptance & Support American Express Cards are welcomed around the
world, and Cardmembers will be provided with local advice and services from Travel
Offices located in over 140 countries.
Complementary Travel Insurance
1
Automatic entitlement to Travel Accident
Insurance when your travel fares are charged to the Corporate Card, including
emergency accident sickness and medical expenses, hijack cover and coverage for lost
and delayed baggage and flights
Travel Assist (Basic) A travel assistance hotline to assist Cardmembers both prior to
and on their journeys. This hotline will advise travelers on local Visa, Embassy and
Translation Services, as well as provide information on ATM locations and American
Express Travel Service Offices. It will also support Cardmembers when legal, medical
or repatriation services are required.
Personal Security
Medical Assist 24/7 Emergency Assistance including the arrangement of medical
services, dispatch doctors, hospital admission and arrangements of compassionate visits.
Double Benefit Insurance Under the DBI program, Cardmembers are insured on the
outstanding balance of their Corporate Card in the unfortunate event of death or
permanent disability; an equal amount will be paid to the nominees of the Cardmember,
subject to a fee of 0.3 % will be applied on outstanding amount on a monthly basis.
All Accidental Death Insurance BDT 150,000 for a City Bank American Express
Corporate Cardmember, will be paid to the Cardmembers nominees in case of an
accidental death, this cover is complementary when the DBI program is opted for.
Fraud Protection Cardmembers are not liable for fraudulent charges on their
statement if their Cards are duly reported lost or stolen.
Convenience
Express Cash Cardmembers will have access to more than 900,000 American Express
Automated Teller Machines (ATMs), seven day s a week, 24 hours a day, all situated in
strategic locations such as airports and business centers. Up to half a Cardmembers
credit limit will be available to them should your Company make this option available.
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Retail Products, with special focus on Retail Finance Center (RFC)
E-Statements Card Statements will be provided via email providing Cardmembers
with an easy, convenient and eco-friendly way to check expenses wherever they are in
the world.
SMS Alerts To protect Cardmembers against fraud all Cardmembers have access to
SMS alerts that are tied to their transactions, each time a transaction is completed they
will be alerted by SMS. Payment reminders are also delivered in this manner.
24/7 Customer Services Cardmembers can call City Bank American Express
Customer Services 24 hours a day from anywhere in the world. Our professional
Customer Service personnel will assist on a range of queries from balance enquiries to
card replacement and disputed charges.
Special Privileges
Business Savings Program The Business Savings Program is designed to help you
save money on everyday business purchase through a select group of retailers and
outlets. Pay with your American Express Corporate Card and receive instant savings at
point of purchase. We have negotiated great deals on your behalf, with individual
suppliers, saving you time and money. For more information visit our website on
www.americanexpress.com.bd/bsp
SELECTS
SM
American Express SELECTS
SM
brings you exclusive privileges with an
exciting selection of year round offers and savings both at home and abroad. Bring you
an array of tantalizing offers from some of your favorite restaurants and hotels in
Bangladesh and abroad. Pay with your City Bank American Express Corporate Card
to take advantage of these great savings every time. For more information on
SELECTS
SM
, please visit www.americanexpress.com.bd/selects
3.12 American Express Gold Corporate Card
Maximise Control
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Retail Products, with special focus on Retail Finance Center (RFC)
We understand the need for compliance, both with your internal policies designed to
manage indirect spend and compliance with the latest local and global regulatory
requirements impacting businesses. Our management information reporting and
expertise help our customers to gain transparency of their indirect spend and exert
greater control over their entire expense management program.
Drive savings
With clear, accurate spend data; we can improve a companys potential to drive savings
with their suppliers and make process efficiencies By using our solution to consolidate
and analyze your spend data you can benchmark the costs associated with managing
your company's expense program. This will not only streamline your expense
management process but help deliver substantial savings.
Benefit Employees
Workforce safety and satisfaction are key measures of a successful business. This is why
our solutions ensure that our Customers can cater to their employees in this regard. With
comprehensive insurance, customer services and rewards programs, we ensure that your
employees receive the support they require and the rewards they deserve by complying
with your program.
Manage Globally
American Express support is available globally and our Cards are accepted by millions
of merchants in over 200 countries making our Cards the perfect travel companion.
Furthermore, starting your program with American Express enables you to roll out
similar solutions worldwide.
Benefits:
Fast Track Immigration
Cardmembers have access to exclusive American Express Fast Track at Hazrat
Shahjalal International Airport, Dhaka by showing their City Bank American Express
Gold Corporate Card at departures.
Lounge Access
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Retail Products, with special focus on Retail Finance Center (RFC)
Cardmembers can enjoy complementary lounge access at the City Bank American
Express Lounge at Hazrat Shahjalal International Airport, Dhaka, regardless of airline
and class of travel. The facilities available to Cardmembers are complimentary hot
food and drinks served by the Hotel Sheraton Dhaka, Widescreen TVs and Wi Fi
connections.
3.13 Loans & advances
Bank collects deposit for lending & investment, this function is performed by Loans &
Advance Department, sanctioning of loan proposal starting from customers request for
a loan. Collection of necessary papers, information & financial statement, analyzing of
those information, preparation of loan proposal, security analysis & valuation,
inspection, lending risk analysis are the prerequisites for sanctioning a loan or any kind
of advance payment.
3.14 Procedure for getting approval of a loan
Credit Management Policy for any commercial bank must have been prepared in
accordance with the Policy Guidelines of Bangladesh Banks Focus Group on Credit and
Risk Management with some changes to meet particular banks internal needs.
The guidelines for credit management may be organized into the following sections:
3.14.1 Policy guidelines
Lending guidelines: The lending guidelines include the following:
- Industry and Business Segment Focus
- Types of loan facilities
- Single borrowers/ group limits/ syndication
- Lending caps
Discouraged business types, the followings are discouraged:
1. Military equipment/ weapons finance
2. Highly leveraged transactions
3. Finance of speculative investments
4. Logging, mineral extraction/ mining, or other activity that is
ethically or environmentally sensitive
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Retail Products, with special focus on Retail Finance Center (RFC)
5. Lending to companies listed on CIB black list or known
6. Counter parties in countries subject to UN sanctions
7. Lending to holding companies.
3.14.2 Credit Assessment and Risk Grading
A thorough credit and risk assessment should be conducted prior to the granting of
loans, and at least annually thereafter for all facilities.
Credit Applications should summaries the results of the risk assessment and include,
as a minimum, the following details:
Environment or social risk inputs
Amount and type of loan (s) proposed
Purpose of loans
Loan structure ( tenor, covenants, repayment schedule, interest)
Security arrangement
Any other risk or issue
Risk triggers and action plan-condition prudent, etc.
Risk is graded as per Lending Risk Analysis (LRA), Bangladesh Banks
Guidelines of classification of loans and advances.
3.14.3 Approval Authority:
Approval authority may be as the following:
Credit approval authority has been delegated to Branch Manager, Credit
Committee by the MD/ Board
Delegated approval authorities shall be reviewed annually by MD/
Board.
3.14.4 MD/ Board:
Approvals must be evidenced in writing. Approval records must be kept on
file with credit application
The aggregate exposure to any borrower or borrowing group must be used
to determine the approval authority required.
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Retail Products, with special focus on Retail Finance Center (RFC)
Any credit proposal that does not comply with Lending Guidelines,
regardless of amount, should be referred to Head Office for approval.
3.14.5 Segregation of Duties
Banks should aim at segregating the following lending function:
Credit approval/ risk management
Relationship management/ marketing
Credit administration
3.14.6 Internal Control and Compliance
Banks must have a segregated internal audit/ control department charged with
conducting audits of all branches
3.15 City i-Banking
I-Banking is the internet
banking service of the City
Bank Limited which is totally
free of cost for its clients, who
are interested to use the service.
For activation the service the client has to apply with an assigned application form &
he/she should have a mail address. With a single click the clients can get the following
services
Single Click Banking:
View Account Summary
View Account Details
Print Statement
Cheque Book Inquiry
View Standing Instruction
City i-Bank user tips:
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Retail Products, with special focus on Retail Finance Center (RFC)
1) For getting this service, customers have to fill out the form correctly
2) Secret question and answer have to be filled out by the applicant, and he/she
should not disclose that to anyone
3) Within 4 working days after submitting application form, bank will inform the
customer his/her ID & Password
4) After getting ID & Password, users have to go to the website
http://www.thecitybank.com for log in to i-Bank service
5) After first log in, user must change password for future use
6) User can check his account summary; account detail; can query about his/her
cheque book; can view his/her standing instruction of the account; can take
printouts of statement and he/she can change password when needed
7) User must remember the secret question & answer which he/she has noted in
application form. The secret question & answer will be needed for activating or
deactivating his/her i-Bank account and for password retrieval (if password
forgotten or lost)
8) Users can use this service using any web browser (like Internet Explorer; Netscape
Navigator; Mozila etc.)
9) Users can access his/her i-Bank account from anywhere of the globe, anytime
10) Users can also access his/her i-Bank account using mobile phone (only GPRS,
EDGE & WAP enabled phone
3.10 City Wallet
The City Bank Ltd has recently launched its new product 'City Wallet'-mobile banking
installed in customers' phone sets menu option- for the first time in Bangladesh.
Customers having a JAVA enabled cell phone with Internet access are no longer
required to type in the keywords in order to get SMS banking services. Customers, who
do not have JAVA enabled cell phone, however, have the option to avail themselves of
traditional SMS banking by typing in keywords and sending that through a short code
number (16243).
Following a simple registration process, the account holders of City Bank will now be
able to avail themselves of all basic banking services through City Wallet like account
balance enquiring, mini statement, transaction inquiring up to last 20 transactions,
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Retail Products, with special focus on Retail Finance Center (RFC)
branch and ATM information, forex rate enquiring and also real-time customer service,
according to a press release.
4.1 Retail Finance Center
Retail lending has been zooming ahead, driving a banking-sector boom since the
beginning of the decade. Retail lending has changed dramatically in the last couple of
decades, moving from a largely intuitive process to an increasingly automated one.
Managing a retail loan portfolio successfully depends on properly developing,
deploying, and integrating a wide range of risk management and operation models.
These modeling activities need to be coordinated across a range of loan products and
across marketing, credit, collections, operations, and MIS. Retail loan is offered to
individuals for some prearranged purposes and is to be repaid by equated monthly
installments. Retail finance is one of key business pillar of retail banking which can
assist retail bank to boost the lending business. City Bank is stepping in the realm of
retail lending. Before offering the retail loans, City Bank needs to roll out credit process
manual for Retail Finance Center (RFC), centralized retail risk management body. To
ensure streamlined credit process for retail loan products, proposed credit process
manual will play a significant role.
Therefore, we are also introducing new sort of retail loan products to maximize banks
profitability and ensure a brand identity. To support business goal, capacity building is
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Retail Products, with special focus on Retail Finance Center (RFC)
essential. Proposed credit process manual discourses the different credit and credit
operation process to ensure capacity bridling, asset quality and ensure business growth.
4.2 Target Customer and Market
4.2.1 Target Customer: The name list of the target market includes:
Salaried Executive: Corporate executives of Multinationals, UN bodies, Large
Local corporate, Medium & Small corporate bodies, diplomatic houses,
government bodies, Private entities etc.
Businessperson: Applicants may be proprietor of sole proprietorship firm, partner
of partnership firm and/or director of a private & public limited company.
Self Employed: Individuals making a living from their technical expertise, i.e.
medical practitioner, engineers, architects etc and free lancers like consultants,
landlords etc, who have an established source of income.
4.2.2 Non Target Customer
- CBL Negative listed individuals.
- Journalist of reasonably lower level & non reputed publications.
- Lawyers
- Employees of the firm which has a poor repayment history in
business loan with The City Bank.
- Employees of non-reputed Proprietorship Firms & Partnership Firms.
- Officials of law enforcing agencies.
- Individuals with known criminal records.
- Politicians & Individuals having politically affinity.
- Travel agents and C & F agents of lower level.
- Defense officials below Major level.
- Mariners
- Individuals whose personal and business loan performance is poor.
- Public Figures and media personality.
Note: 1. Except for 100% cash covered facility, financing to the above non
target individuals will require the approval from level 2 authority holders.
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2. Inclusion or exclusion of any segment in non target market may be
done upon decision of higher management.
4.2.3 Out of Area Customer:
Loans are offered only to applicants whose office or residence is located at cities where
we have branch representation. However, this may be waived for salaried executives
whose salary a/c is with us, but office and residence is located outside cities with our
branch representation.
Note: However, this is not applicable for 100% cash covered Auto Loan.
Non Resident Customer:
Loans to nonresident Bangladeshi (i.e. wage earners) are allowed for 100% cash covered
facilities only.
4.3 Distribution Channel and Sourcing Method
4.3.1 Distribution Channel:
All loan applications are mainly sourced through following distribution channels:
o Directs Sales Team
o Branches/Kiosk
4.3.1.1 Direct Sales Team:
Customers in this segment are tracked by DSE themselves. DSE source the loan/finance
application in ways- Sales Officer/Manager obtain list of local corporate and
multinational corporate bodies and hand over to DSEs. DSEs set up appointments in
these companies and visit the appropriate department from where a list of employees is
obtained. Potential Customers are tracked down from the obtained list of employees and
they are contacted either through phone calls or when the DSE visits the organization.
DSEs reach the customers by making phone calls or by random visits to various shops,
factories, trading agencies, business firms, consulting firms etc. Those customers are
located by DSEs, when they visit various individual professionals at their chambers.
Many customers are located through references from existing customers in this
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segments reach the customer by making cold calls, through references from existing
customer or by random selection.
4.3.1.2 Branch:
Customer visits the Branch and approach for the loan/finance. Customer is contacted by
CSO/RM/SSM over phone and approached for the loan/finance. Later customer visits
the branch and performs necessary formalities to take the loan/finance.
4.4 Application Process
5.4.1 Application Process by Branch and Sales:
Customer completely fills-up the loan application pack (LAP) and drops it to the
sources who forward the same to RFC. Respective Managers of sourcing
channels will take extra measures to check whether the application form is fully
filled up and there is no overwriting or amendment without customer signature.
Managers of sourcing channel will verify customer signature in the application
form , mark original seen in the photocopied documents before sending the
LAP to RFC and will fulfill the documentation checklist attached in the LAP
(Loan Application Pack) through branch.
0 4.4.2 Application Process by Retail Finance Center (RFC)
MIS:
RFC MIS Officer will receive the applications and give input in the daily MIS.
MIS officer will put unique serial or tracking number on the application and
hand over the applications to CPV agents for verification.
MIS officer will distribute the LAPs among the analysts.
Send daily status report to sourcing channels via e-mail.
MIS officer will receive loan applications from sources and distribute the LAPs
to credit analyst.
MIS officer will hand over the copy of LAPs to the CPV agent for verification
purpose and will receive the same from CPV agents.
MIS officer will send back the LAPs to the source as and when advised by credit
analyst.
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Retail Products, with special focus on Retail Finance Center (RFC)
4.4.3 Application Assessment:
Analyst will pre-screen the LAP and if any discrepancy is found will send back
to source for further review.
Credit Analyst will analyze whether application meets PPG criteria, documents
requirement and prudential regulations of Bangladesh Bank and will recommend
for approval of the applications on appropriate cases otherwise recommend for
decline.
Credit analyst will perform de-duplication and negative check list, prepare
approval sheet.
Credit analyst can return the LAP back to source for any document deficiency
and credit analyst can send any query or ask for any clarification from source
Manager RFC/HORFC/HORB/DMD/MD will provide final approval decision as
per their DLA.
Manager RFC/Head of RFC/HORB/DMD/MD will approve or decline the
applications as per delegation of lending authority (DLA).
4.4.4 Approval Status and MIS:
MIS will update the status of LAPs if any loan is approved or declined by the
appropriate DLA and MIS will inform the branches accordingly via daily status. MIS
will inform the branches application approval status along with loan amount, tenor,
approval conditions to sources on daily basis.
4.4.5 At Asset Operations:
Once any credit facility is approved, sourcing channels and asset operation will get
through disbursement process as mentioned below:
4.4.6 Documentation Check and Disbursement Process
Sources will arrange to meet approval conditions and send all aforesaid
disbursement to Asset OPS for disbursement.
Officer, loan documentation will receive loan documents from the Branch.
Officer loan documentation is authorized to review documents to ensure that all
documents and sign are in order.
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Retail Products, with special focus on Retail Finance Center (RFC)
4.5 Credit Assessment Process
4.5.1 Credit Decision:
The Credit Analysts will assess the income of the applicant based on the income
assessment guideline provided in Annexure-III. However a Credit Analyst may also
decide to defer an application back to the source or hold prior to make any
approve/decline decision. So, in effect a credit analyst can recommend any one of three
decisions:
o Approval
o Decline
o Return to Source/Hold
A. Approval:
After assessment if it is found that a loan application meets all the PPG criteria,
no default history and complied with BB guide line, Credit Analyst will prepare
approval sheet considering all the product parameters as detailed in PPG.
MIS officer will receive the LAP from the approval authority and update the
MIS and preserve the LAP in vault.
As soon as Auto Loan is approved, officer loan documentation will prepare four
sets of Purchase Order (facility confirmation letters) following the approved
loan amount and will get the same signed by concern credit analyst. , addressed
to customer, vendor and BRTA, and forwards it to the source by maintaining
tracker sheet. One office copy of the same will be kept in the LAP. The letters
are later received by the vendors or authorized representatives through the
Branch.
B. Decline
Credit Analyst may decline the loan application on the ground of non
compliance with PPG criteria, poor repayment history of loan/credit card,
presence in negative list and de-duplication, providing fraudulent documents or
negative information.
C. Return to source/Hold/Deferral:
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Retail Products, with special focus on Retail Finance Center (RFC)
If an application is sent to RFC without all necessary documents credit analyst
can return the LAP back to source or can hold the LAP by sending mail to the
respective manager (RM/STM) of sources informing the query or discrepancy
The source contacts the customer to collect the required documents or for the
query. If the defer reasons are addressed, the source will re-send the document
back to RFC for further processing. After fulfillment of the query and address
of discrepancy, credit analyst will further process the lap for credit decision
4.5.2 Multiple Exposures and Top up Criteria:
Multiple Exposures: Aggression of multiples retail loan exposures is regarded as
multiple exposures. For example, customer enjoying a Car Loan of Tk 15 Lac, applied
for a personal of Tk 5 lac. Multiple exposures will be Tk 20 lac.
Top Up: A top-up loan is an additional loan extended to the borrower under same
product nature. For example, a customer availed personal loan of Tk 5 lac and now
he/she applied for another Tk 3 lac. This additional amount will be treated as top up
loan. All unsecured loan will be treated as similar product excepting Auto Loan.
When applying for a multiple exposure and top up, the following criteria will apply:
Customer must pay minimum 6 installments of existing loan to avail top up loan.
i. For multiple exposures, customer availing car loan may apply for personal loan
(life style loan, salary loan, professional loan) regardless of time frame of
existing facility.
ii. No credit facility is delinquent (30 DPD and above) at the time of application
of top up or multiple exposure.
iii. Maximum 60+ DPD in last 6 months.
Note: Any deviation from the above should be approved by through L-2 exception
Aggregation of Exposure: Loan exposure (existing plus proposed) must not cross the
maximum product ceiling. Product wise DLA must be considered while sanctioning new
exposure to the customer under similar products. For example, if customer has been
enjoying Tk 6 lac personal loan which was approved by Head of RFC (DLA Tk 7 lac)
and applies for additional top up to Tk 3 lac will require the approval of Head of Retail
Banking/DMD (Business)/MD (DLA up to Tk 10 lac) since both facility constitute loan
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Retail Products, with special focus on Retail Finance Center (RFC)
amount of Tk 9 lac under single product which is beyond the DLA of Head of RFC.
Policy in respect to Aggregation of Exposure:
- All exposure in personal name should be aggregated;
under no circumstances will the aggregate unsecured personal unsecured loan
limit cross Tk 10 lac.
- Guarantee amount will be aggregated with guarantors
personal exposure.
- Spouse's exposure will be aggregated in case of joint
application with spouse or if exceeding exposure is being availed jointly with
spouse.
Reassessment: Re-assessment request of sourcing channels of declined file only be
conducted upon providing memorandum of reassessment (MOR) by the RO/RM/STM
with strong justification in favor of reassessment and MOR should be recommended by
SSM/ Cluster Manager/ Head of Sales. After re- assessment the LAP can be
Approved/Declined as per DLA.
- No re-assessment will be conducted if the LAP is
declined on integrity ground of the applicant, adverse CPV and CIB.
4.6 Loan Balance Transfer or Take over Process
Customers enjoying EMI based personal loan may enjoy the facility of Loan Balance
Transfer. Regular loan application process will be followed in this case.
Features and eligibility of balance transfer are as follows:
4.6.1 Eligibility Criteria
- Minimum 6 loan EMI repayment with existing bank.
- Existing loan status must be regular and account status never went to 30
DPD+ during last 6 months.
- Approved loan amount may be higher than take over loan amount.
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- Take over amount will be equivalent to existing loan outstanding with other
bank and is to be transferred by respective branch through issuance of bankers
cheque/ pay order in favor of customers existing bank.
- All income and DBR criteria as per guideline mentioned at later section.
4.6.2 Required document from the Applicant
Income and identification documents as applicable as per guideline.
Bank statement or loan statement showing last 6 EMI payments with loan
outstanding status.
Loan settlement letter issued by other bank is to be sent to RFC by branches
within 7 days of disbursement.
4.7 Loan KYC
Loan KYC (Know Your Customer) will be required for any unsecured retail loan.
Purpose of loan KYC is to focus on the following key areas:
= Background (family/ parents/ educated or experienced-
wise person).
= Job/Business Standing (Job Position & job history
/nature of business in details-trader/producer, major items, annual sales,
stock/receivables etc.).
= Life Style (marriage record/children/travel record/quality
of life/taste of car/dress/residence).
= Loan Behavior & Willingness to repay (loan
repayment record & seriousness/commitment to repay proposed loan).
= Net worth of the Applicant (cash/deposit/shop
ownership/vacant land/investment in business etc. i.e. total assets less liability).
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= Guarantors Status (Social standing, willingness & ability
to stand as guarantor- where applicable).
Loan KYC will be prepared by RM/STM and to be recommended by SSM/Cluster
Sales Manager /NSM/Head of Sales. KYC rating or performance of customer will
have following segments.
Excellent
Satisfactory
Average
Low
Applicants should get minimum average rating in all key areas of KYC. Any
low rating will be treated as exception and will require approval on exception.
4.8 Income Assessment
4.8.1 Gross Monthly Income:
Gross Monthly Income (GMI) is defined as the total income of an applicant including all
legitimate earning sources which have reflection on the bank statement on a regular
basis or supported by income documents. Requirement for minimum gross monthly is
determined based on the eligibility criteria of individual products.
4.8.2 Debt Burden Ratio (DBR)
Formula for Establishing Capacity to Pay (Debt Burden Ratio)
DBR = (Summation of all EMI payable towards loans + Monthly personal OD interest +
3% of Credit Card Limit) / Gross Monthly Income)
Income Wise DBR Slabs
Income 15,000-29,999: DBR 35%
Income 30,000-49,999: DBR 40%
Income 50,000-99,999: DBR 50%
Income 100,000+: DBR 55%
Table 4.4: Debt Burden ratio (DBR)
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Average Balance:
EMI percentage to average balance ratio must not cross 33%.
Credit card limit:
3% of the Credit Card limit will go into DBR calculation if the applicant owns a credit
card.
4.9 Guarantor
1 Personal Guarantee will be required for any unsecured CBL retail Loan
4.9.1 Eligibility of guarantor:
Any salaried executive deemed acceptable to CBL or;
Professionals (Doctors, Chartered Accountants, and Engineers etc) or;
Reputed Businessman acceptable to CBL.
A guarantor can provide personal guarantee up to TK 10 lac for unsecured loan
(excepting car loan) including his her own exposure.
CBL staff cannot give guarantee against any retail loan.
For Auto Loan, spouse or immediate relatives will be preferred.
4.9.2 Required guarantors Documents
TIN
Photograph and business card
In case immediate relative, TIN related document will not be required
4.9.3 Location of the guarantor:
Guarantors residence or office must be located in cities where we have branch
representation. However, out of area guarantor is acceptable, if he/she has an account
relationship with us.
4.9.4 Assessment of credit worthiness of guarantor:
Since Personal Loans are approved based on applicants credit worthiness and guarantee
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Retail Products, with special focus on Retail Finance Center (RFC)
is taken only as a secondary recourse, assessment of guarantors credit worthiness is not
assessed. However, it is our assumption that the criteria we have set out to become
eligible to be a guarantor are reflective of their credit worthiness.
4.9.5 Waiver of guarantor:
Guarantor will not be required for the following segments
CBL staff
Employees of POL list and intended to loan amount not exceeding BDT 3 lacs
100% cash secured loan facility.
4.10 Exceptions of Management
Exceptions are defined as the permissible deviation defined in PPG. Source receives the
application from the customer and checks to see whether there is enough justification to
recommend the loan under exception level. If satisfied, source forwards the loan
application to RFC. One person should recommend and a Manager should support the
loan application that falls under exception level criteria. In absence of any Managers
support, Credit Analyst may send back the application or recommend to decline. It is
possible that source may send applications to RFC without recommending and
supporting for the exception level. In that case, RFC based on the strength of the
proposal, may underwrite the loan as per individuals DLA and exception waiver
authority. Approval/deferral/decline process will continue for any decision.
4.11 Delegation of Lending Authority and Review Process
Like all other unsecured Retail Loan of City Bank, City Solution applications will be
scrutinized, verified, processed and disbursed by the Retail Finance Center. Approval
authority will remain with Credit Manager, Manager RFC, Head of Retail Finance
Center, Head of Policy and Analysis, Head of Retail Banking, Deputy Managing
Director (Business) and the Managing Director.
Approval authority at every stage will be guided by the Permissible Exceptions grid
given in the previous section. Once a loan is approved, it will remain valid for
disbursement until next 30 days, from the date of approval.
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4.11.1 Loan Limit Approval Authority for CITY Solution is as follows:
Loan Amount Approval Authority
Up to Tk 3 lac Credit Manager
Up to Tk 5 lac Senior Manager/Manager RFC
Up to Tk 7 lac Head of RFC/ Head of Policy and Analysis
Up to Tk 10 lac Head of Retail Banking /Deputy Managing Director(Business)/
Managing Director
Table: Loan limit approval authority for City Solution
4.11.2 Loan Limit Approval Authority for City Drive is as follows:
Loan Amount Approval Authority
Up to Tk 5 lac Credit Manager
Up to Tk 10 lac Senior Manager/Manager RFC
Up to Tk 15 lac Head of RFC/ Head of Policy and Analysis
Up to Tk 20 lac Head of Retail Banking /Deputy Managing Director(Business)/
Managing Director
Table 3.5: Loan limit approval authority for City Solution
Note:
1. DMD (Business)/MD is authorized to cancel the approving authority of the down
level officials at any time to be decided by them.
2. DMD (Business) /MD reserves the right to exclude any official from above approval
chain or include any new official depending upon incumbents credit experience and
level of comfort that the DMD (Business)/MD draw over the incumbent.
3. Approval authority of assistant/associate credit manager or credit manager (personal
and auto loan) will come into effect upon getting instruction from Head of Retail
Finance/ Head of Retail Banking depending upon incumbents credit skill and
experience. Only one credit manager of personal and auto loan analyst team will have
approval authority.
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4. Head of Policy and Analysis can exercise the approval authority in absence of Head
of RFC.
4.12 Turn Around Time (TAT)
RFC will ensure approval decision of personal loan within 72 hours and auto loan for 48
hours. However, this will not be applicable if CPV of bank statement cannot be done,
and in case authentication is unreasonably withheld by the statement issuing Bank. TAT
will be counted from the receiving time of applications at RFC end. TAT for application
received after 11:30 a.m will be counted from the next working day.
Disbursement TAT will be considered 24 hours from the time of receiving all required
documents from source end. If any document deficiency found at asset ops end, this
TAT will not be applicable. TAT for document received after 11:30 a.m will be counted
from the next working day.
4.13 CIB Process
A. Source obtains undertaking from applicant to request for CIB report from the
Central Bank and submits the same to Credit Administration CIB section.
B. Credit Administration forwards the requests to the Central Bank.
C. Upon receiving a reply from the Central Bank, Credit Administration forwards a
copy of CIB reports to sources or RFC.
D. Officer at Asset OPS after receiving the CIB report from the source, get the
clearance from the respective credit analyst. If found clean or nil and all other
documents are in order, loan is disbursed as per the disbursement process.
4.13.1 Negative CIB report:
As a part of Credit Approval Condition, if the CIB status is anything other than Clean
or Nil (e.g. Bad Loss, Doubtful, etc.) the credit analyst will subsequently declined the
application and ask the MIS to black-list the customer depending on the severity of
report.
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System
Retail Products, with special focus on Retail Finance Center (RFC)
4.13.2 CIB Report-Dispute Resolution:
Dispute
Sometimes customer may challenge CIB report which may not be related to him due to
different reasons. The reasons for dispute may be inclusive (but not exhaustive) of the
following:
Different persons in the same name.
CIB report is related to customers previous organization which was not updated
in Central Banks record etc.
Loan was regular but reported as irregular.
4.14 Contact Point Verification (CPV)
While considering proposals for any exposure, banks should give due weight age to the
CPV report of the borrowers personal, work or business details and same as the
guarantors. This CPV will be conducted by market tested and reliable third partly
agents.
To organize and streamline the CPV report following six types of verification guidelines
details the process for CPV report. CPV Policy and Process Guideline describe the
whole process.
Contact Point Verification
Bank Statement Authentication
Credit Report
Rent Verification
Guarantors Information
Car Value Verification
Total CPV process will be based on CPV Policy and Process Guideline of CBL.
4.15 Negative List Checking and Withdrawal
Employer negative list:
To withdraw from employer negative list, SSM/HO Sales recommendation is required
with proper justification if the negative listing was due to some employee related
problem. After proper investigation, if it is found to be genuine, HORFC may withdraw
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the employer from negative list with proper stapes to mitigate risks i.e. Provide loans
against EOSB, lower tenor, lower loan size, high security ratio, low LTV etc.
4.15.1 Individual Negative List
Customer may be withdrawn from negative list for different reasons
B. wrong bank statement verification report
C. wrong of negative CIB report
D. wrong CPV report or
E. The previous poor borrowing history which is not related to customers
willingness, etc.
4.15.2 Automobile Dealer negative list
Automobile Dealer may be withdrawn from the negative list. The process will be as
follows:
Owner(s) of Automobile Dealer will send an apology letter to HO Sales/SSM
describing the position and confirm that they will not do the bad practice in future.
HO Sales/SSM if satisfied will recommend withdrawing from negative list with
detailed justification and forward to HORFC.
HORFC may withdraw the dealer from negative list based on the
recommendation from HO Sales/SSM.
Activities of that dealer (withdrawn from negative list) will be closely
monitored.
4.16 Loan Approval process:
Consumer loan of CBL are processed and approved through its Retail Finance Center.
Before the establishment of RFC, branches had the authority to approve & disburse
loans though consultation with higher authority Head of Consumer Banking, Deputy
Managing Director, and Managing Director. As the process faces some crucial pitfalls,
management of CBL decided to set up a central unit RFC- that will be responsible for
loan assessment, approval, disbursement, and collection.
4.17 Location of Retail Finance Center:
RFC is located on the 2nd floor of 11 Dilkusha c/a, Motijheal, Dhaka. RFC has set up on
March 15, 2004 for evaluating credit worthiness in consumer lending. It will consist of a
team of people to identify, analysis, measure and manage risk related business.
65
Manager
Credit Analysis
Collection &
Recovery
Security &
Disbursement
Management
Information
System
Head of RFC
Retail Products, with special focus on Retail Finance Center (RFC)
4.17.1 Structure of RFC:
RFC handles all the retail loan applications coming from all the branches and
Direct Sales Teams (DST) across the country.
4.17.2 Management Structure of RFC
The management hierarchy of RFC is very simple as total much of employees are only
Fig: Management Structure of RFC
4.17.3 Responsibilities of the Department of RFC:
Head of RFC:
The head of RFC is primarily responsible to oversee the activities of RFC & to
collaborate with the 83 branches across the country.
Daily activities include
Consultation with prospective client where necessary,
To assist analyst group to measure credit risk,
To provide information and to keep contact with higher authority HOCNB,
DMD, MD and
66
Retail Products, with special focus on Retail Finance Center (RFC)
To take measures to keep smooth operation
Manager of RFC:
Manager of RFC has the authority to approve or decline loan applications. If his
authority does not permit, then he consults with higher authority.
Security Checking & Disbursement:
Officer lading support & officer disbursement both cheek all the relevant documents and
give authorized signature where necessary. If discrepancies or any fraudulent is found,
they consult with manager RFC and if everything is okay then disburse the loan.
Management Information System (MIS):
Within the RFC, two people keep track of all the laps that RFC receives or RFC
returned. MIS officer provide a database that contains all true relevant information of
each and any lap irrespective of there status- approved, declined, disbursed, pending on
process, place for decision, sent to queries. It serves an important purpose of inform all
related members about retail loan.
4.18 LAP Work Flow for All Consumer Loans:
67
Lap filled & assessed
by ARM/ RM and
necessary
Recommendations
taken
Final review by
supervisor
Branch provides
documents-
Sanction letter,
UDC, DP note
RFC (MIS) status
updated
Lap with major discrepancy will
be returned to branch and lap
with minor discrepancy will be
assessed and needs to rectified
RFC informs branch about
approved laps, ask for necessary
documents if needed, and wait
for CPV/CIB clearance
RFC(MIS) receives the lap, gives
necessary input and hand over to
analyst group for assessment.
Approved laps will be review by
Manager-RFC, HOCFC and
where applicable by HOCNB,
DMD, MD
RFC checks all documents &
CIB/CPV if found ok then
disburse.
Client receives money on the
same day by electronic fund
transfer.
Necessary stamps will be
attached, copy of sanction
letter, return to client.
Send for storage in RFC
Branch
Level
RFC Level
Retail Products, with special focus on Retail Finance Center (RFC)
Fig: LAP Work Flow
4.19 Credit Analysis:
Credit Analyst will read the lap carefully before embarking on finding credit worthiness
that is income assessment. Loan KYC helps analyst to judge the clients social status
and some other attributes. Then analyst focuses on key area assessing financial
capacity of the borrower
4.20 Credit approval authority:
Product Approval Authority
Manager RFC HO RFC HO CNB DMD/MD
Credit Card Upto Tk. 3 lac Upto Tk. 5 lac Upto Tk. 7 lac Upto Tk. 10
68
Retail Products, with special focus on Retail Finance Center (RFC)
Loan lac
City solution Upto Tk.3 lac Upto Tk. 5 lac Upto Tk. 7 lac Upto Tk. 10
lac
City Drive
(Car) Loan
Upto Tk. 5 lac Upto Tk. 10
lac
Upto Tk. 15 lac Upto Tk. 20
lac
4.21 Approval Sheet:
The credit analysts will recommend to approve or decline the loan based on his/her
judgment. If the loan is approved then, analyst will fill the laps approval sheet. On this
sheet, we will find the table that shows monthly income claimed by applicant, and
other income assessed by branches use RFC. Only the RFC validated income will be
considered is computing debt benumb ratio and other important items.
To evaluate clients capacity to pay the EMI analyst will find ant EMI as a percentage of
average balance & Debt burden ratio on RFC validated income.
Value based DBR will be considered as follows:
Monthly Income (Taka) DBR
10,000-29,999 35%
30,000-49,999 40%
50,000-99,999 50%
1,00,000+ 55%
If the DBR and percentage of average balance are consistence, with assessment
guideline, analysts will wait for CPV and CIB inhere required.
4.22 Verification Process:
69
Retail Products, with special focus on Retail Finance Center (RFC)
Verification is an integral part of credit appraisal, as it validates the information that
is being used for assessment.
At CBL, verification' is segregated and defined as below:
5.22.1 Contact point verification (CPV)
Residence Address verification - where the applicant(s) resides
Office Address verification - workplace of applicant(s) i.e. primary source
of income
Residence Telephone verification - fixed telephone, which is at residence (if
any)
Office Telephone verification - fixed telephone at workplace along ext. (if
any)
Mobile Telephone verification - Applicants own mobile phone, which is
available with him/ her
Bank Statement Verification: Here bank statement verification indicates to
other bank statements that are being used for income assessment.
Credit Report
Rent Verification
Car value verification
Guarantor's details Verification:
The verification agency will verify general CPV details of the guarantor as per
attached format.
5.22.2 Housewife's details Verification:
In case the applicant is a homemaker having major financial dependence on the
spouse, the CPV will be applicable for the spouse in the manner that as if the spouse
is the applicant of the loan.
4.22.3 Objective:
The objectives of this document are as below:
70
Retail Products, with special focus on Retail Finance Center (RFC)
To outline procedures to parameterize verification process through third-party
agencies
To formulate procedures which will be used as yardsticks for performance
evaluation?
To reengineer existing process and improve turn around time (TAT).
4.22.4 Procedure:
RFC initiates verification process. After CPV assessment, bank statement
authentication, credit report and / rent verification (where applicable) requests are
forwarded to verification agency.
4.23 Time of receipt of request and submission of report:
Every working day except for Thursday verification agencies would collect all the
days' requests on or after 1800 hrs. Prior to collecting requests verification agency
will submit their last day's reports. The submission turn around time will be 24
hours, but not exceeding 48 hours. Corresponding charges for verification will be
guided by agreements signed between the bank and the agency.
The bank will conduct CPV for every loan applications (other than the exceptions
detailed at a later part of this document) generated at every centers / branches across
Bangladesh.
4.23.1 Waiver of Verification:
71
Retail Products, with special focus on Retail Finance Center (RFC)
Unless it is 100% cash secured, a third party must verify details of a loan applicant
for any loan amount before an approval is accorded. However, physical verification
is waived for the following category of applicants:
-CBL staff
-Customer enjoying a loan already
-Customer applying for Additional Loan
However, in case the CPV has been performed for existing customers more than 1
year ago, then a new CPV will be done again for lending purpose.
4.23.2 Waiver Authority:
Other than the above cases, only the Managing Director may grant any waiver of
verification against any additional scenario and / or the Deputy Managing Director
of the bank in cases where:
The request for waiver with proper justifications is submitted by loan sourcing
channel (Branch team I Sales team)
The request is recommended by Head of Consumer Banking and CFC Head/
Manager jointly.
4.23.3 CIB (Credit information bureau) Report:
To be confirm about the loan status of the client, Bank requisites Bangladesh Bank to
issue a CIB Report. This is a confident ional report and Bank provides this only to
authorize institution.
The CIB Report shows the analyst about the loan status of the client- If the customer
avails no loan status will be nil. If client has any other loan, then CIB will provide
details of that loan- Loan amount, Banks nil, Current status (Classify or unclassified),
payment behavior and so on. If analyst fined the CIB okay, then he/she recommends for
approval.
Credit analyst job is to make recommendation, not to get the loan approval. The higher
authority will review along with other recommendation by the analyst and then it will be
72
Retail Products, with special focus on Retail Finance Center (RFC)
approval respect authority. Higher authority has the power to cancel any loan approved
without contacting analyst. Therefore, a loan recommended by analyst, approve by
manager RFC/HOCFC/HOCNB can be declined by Managing Director /Deputy
Managing Director.
Summary:
Key area to be checked during lap assessment and desired TAT
Identification Assessment TAT 5 Minutes
1. KYC of Branch
2. Residential Address and Status
3. Phone
4. Loan KYC
Income Assessment TAT 10 Minutes
1. LOI Signatory and LOI contents
2. Clients DBR and our set ranges
3. Maximum Allowable Loan Amount and Applied
Loan Amount
4. Salary Reflection in the bank statement
5. Statement checking for finding loan installment
6. Credit Card Status and Loan with other
institutions
7. Returned Cheque status
8. TIN related doc
9. Average Balance
10. Other Income with supporting papers
11. Rent agreement in case of rent income
Loan Documents TAT 5 Minutes
1. Signature on loan documents (DP note, Loan
Agreement Paper etc)
73
Retail Products, with special focus on Retail Finance Center (RFC)
2. Amount in DP note and Loan Agreement Paper
3. Sanction letter and UDC
CPV Report
CIB Report
5.1 Comparative analysis with other Banks
The Banking sector in Bangladesh - even private and public banks - has comparative
product of each other. Here I analysis The City Bank LTD and other three most popular
Bank (Brac Bank, AB Bank, Prime Bank) in retail banking product of Bangladesh. I
discuss their Current Account, Saving Account, STD, DPS, FDR, Car Loan, and
personal loan with different point of view like minimum balance, interest rate, charges,
loan amount etc, as following-
5.1.1 Comparison of the Current Account
Subject of
deposit
The City
Bank Ltd.
Brac Bank
Ltd.
AB Bank
Ltd.
Prime Bank
Ltd.
Minimum
opening
balance
10,000 25,000 5,000 5,000
Interest rate NIL NIL NIL NIL
Account
maintenance
fee
300 + VAT
(Every Half
Year)
500 + VAT
(every half
year)
500 +
VAT
(every
half year)
300 + VAT
(Every Half
Year)
Annual Debit
Card Fee
500 + VAT 600 + VAT 550 +
VAT
600 + VAT
74
Retail Products, with special focus on Retail Finance Center (RFC)
Source: Banks
website
Interpretation: In above table show that, most of banks are same categories in broadly,
there are little difference like the current account opening balance in The City Bank is
10,000 otherwise Brac Bank is 25,000, and AB Bank and Prime Bank is 5,000 only.
Littlie bit difference in Annual Debit Card and Accounts maintenance fee.
5.1.2 Comparison of the Savings Account
Subject of
deposit
The City Bank
Ltd.
Brac Bank
Ltd.
AB Bank
Ltd.
Prime Bank
Ltd.
Initial deposit Tk.10,000 Tk.15,000 Tk.1,000 Tk.1,000
Interest rate 4% ( on daily
basis)
5.50% 6% 5.50%
Account
maintenance fee
300 + VAT
(Every Half
Year)
300 + VAT
(Every Half
Year)
300 + VAT
(Every Half
Year)
300 + VAT
(Every Half
Year)
Annual Debit
Card Fee
500 + VAT 600 + VAT 550 + VAT 600 + VAT
Source: Banks
website
Interpretation: In above table we see that, there are little differences in the saving
account opening balance. Interest rate is varying Banks to Banks, the lowest interest
paid in The City Bank LTD is 4%, but on daily basis, otherwise Brac Bank is 5.50%,
AB Bank is 6% and Prime Bank is 5.50%. The accounts maintenance charge is same
and some difference in Debit Card fee.
5.1.3 Comparison of the Short Term Deposit (STD) Account
Name of the bank Ltd. Minimum opening balance
The City Bank Ltd. Tk.100,000
Brac Bank Ltd. Tk.100,000
AB Bank Tk.250,000
Prime Bank Tk. 100,000
Source: Banks website
75
Retail Products, with special focus on Retail Finance Center (RFC)
Interpretation: We see that, the most of Banks are same in the minimum opening
balance for Short Term Deposit (STD) Accounts, only AB Bank is more amounts
(250,000) for opening this account.
5.1.4 Comparison of City Shomriddhi (DPS) Account
Subject of
deposit
The City Bank
Ltd.
Brac Bank Ltd. AB Bank Ltd. Prime Bank
Ltd.
Deposit Time 3,5,7,and 10
Years
4,6 ,and 10
Years -
3, 5,and 10
Years
3, 5,and 10
Years
Interest rate 8.75% 8.5% 9% 8.75%
Loan
Facilities
80% deposit
balance
80% deposit
balance
80% deposit
balance
80% deposit
balance
Source: Banks
website
Interpretation: In above table show that, most of banks are same benefit provide, there
are little differences in deposit time and interest rate, like City Bank and Prime Bank are
8.75%, Brac Bank is 8.5% and AB Bank is 9%. Loan facilities are same in all Banks is
80% on deposit balance.
5.1.5 Comparison of City Diggon Papti (Double Deposit Scheme)
Subject of
deposit
The City Bank
Ltd.
Brac Bank Ltd. AB Bank Ltd. Prime Bank
Ltd.
Deposit Time 5 Years 9
Months
- 6 Years and 2
Months
6 Years
Interest rate 12.24 % - 12 % 11.61
Loan
Facilities
80% deposit
balance
- 80% deposit
balance
80% deposit
balance
Source: Banks
website
Interpretation: We see that, City Bank will provide the deposit double lowest in time at
5.9 years, and others Bank like AB Banks is 6.2 Years and Prime Bank is 6 Years. Loan
facilities are same in all Banks is 80% on deposit balance. We also see that Brac Bank
does not provide these types of accounts.
76
Retail Products, with special focus on Retail Finance Center (RFC)
5.1.6 Comparison of the City Drive (Car) Loan
Subject of
Loan
City bank Brac Bank AB Bank Prime Bank
Loan limit BDT 2,000,000 BDT 2,000,000 BDT 200,000 BDT 2,000,000
Penal
Interest
17% P.A 20% p.a. on
overdue amount
14.50% p.a. -
17.50% p.a
17%
Down
payment
NIL NIL 20% 10%
Loan period 1 to 5 Years 1 to 5 Years 1 to 6 Years 1 to 5 Years
Processing
Fee
1% 1% 1% or Tk.
5000.00
whichever is
higher
1%
Source: Banks
website
Interpretation: In above table we see that, loan limit are same in all banks, Interest rate
are vary bank to bank, 17% on City Bank, 20% on Brac Bank, 14.5-17.5% on AB Bank
and 17% on Prime Bank. Down payment NIL in City Bank and Brac Bank, 20% and
10% down payment on respectively AB Bank and Prime Bank. Loan period are same
all banks, except AB Bank and Processing fee are equal to all banks.
5.1.7 Comparison of the City Express Loan
Subject of Loan City bank Brac Bank AB Bank Prime Bank
Loan limit BDT
10,00,000
BDT
10,00,000
BDT
10,00,000
BDT
10,00,000
Penal Interest 18 % P.A 20% p.a. on
overdue
amount
15% to 18% 18.5% p.a
Loan period 1 to 5 Years 1 to 5 Years 1 to 5 Years 1 to 5 Years
Processing Fee 1.5% 1.5% or 3,000
+ VAT which
1% 1%
77
Retail Products, with special focus on Retail Finance Center (RFC)
ever is
higher
Source:
Banks website
Interpretation: In above table show that, loan limit are same in all banks, Interest rate
are vary bank to bank, 18% on City Bank, 20% on Brac Bank, 15-18% on AB Bank and
18.5% on Prime Bank. Loan period are same all banks, and Processing fee 1.5% on City
Bank, 1.5% on Brac Bank, 1% on AB Bank and Prime Bank.
5.1.8 Comparison of the City Solution (Personal) Loan
Subject of
Loan
City bank Brac Bank AB Bank Prime Bank
Loan limit BDT 10,00,000 BDT 10,00,000 BDT 5,00,000 BDT 10,00,000
Penal
Interest
15% - 18 % P.A 20% p.a. on
overdue amount
14.50% p.a. -
17.50% p.a.
18%
Loan
period
1 to 5 Years 1 to 5 Years 1 to 3 Years 1 to 5 Years
Processing
Fee
1.5% 1.5% or 3,000 +
VAT which ever
is
higher
1% or 2,000 +
VAT which
ever is
higher
1%
Source: Banks
website
Interpretation: In above table we see that, loan limit are same in all banks, except AB
Bank ltd. Interest rates are vary bank to bank, 15% to 18% on City Bank, 20% on Brac
Bank, 14.5-17.5% on AB Bank and 18% on Prime Bank. Loan period are same all
78
Female
Male
Retail Products, with special focus on Retail Finance Center (RFC)
banks, except AB Bank and Processing fee 1.5% on City Bank, 1.5% on Brac Bank, 1%
on AB Bank and Prime Bank.
5.2 Customers Survey
The City Bank Limited believes that communication with feedback from its clients help
it achieve its goal of providing world- class products and services. Bank regularly
conducts clients satisfaction surveys make immediate accommodations and adjustments
where needed. It also constantly monitors its standards, and strives to meet clients
requirements.
As a part of my internship report, a survey was made in order to know the clients
opinion about the Retail Products of The City Bank Ltd. For this open-ended
questionnaire is used here.
5.3 Frequency Test of Respondents
Different types of Bank customers are taken into consideration to in order to follow up
the survey. They are distinguished in terms of sex, age and transactions during a month.
Sex: Sex was divided into two groups, Male and Female. Among the
50 respondents 24% are female and 76% are male.
79
Gender
12 24.0 24.0 24.0
38 76.0 76.0 100.0
50 100.0 100.0
Female
Male
Total
Valid
Frequency Percent Valid Percent
Cumulative
Percent
Age
10 20.0 20.0 20.0
24 48.0 48.0 68.0
9 18.0 18.0 86.0
5 10.0 10.0 96.0
2 4.0 4.0 100.0
50 100.0 100.0
18-25
26-35
36-45
46-55
56-65
Total
Valid
Frequency Percent Valid Percent
Cumulative
Percent
20%
48%
18%
10%
4%
18-25
26-35
36-45
46-55
56-65
0%
5%
10%
15%
20%
25%
30%
SCB DBBL City Brac Prime
Retail Products, with special focus on Retail Finance Center (RFC)
Age: The age group ranged from 18 years to 66 or older and divided in to 6 groups.
These are 18 to 25, 26 to 35, 36 to 45, 46 to 55, 55 to 65, and 66 or older.
Among them 48% from 26 to 35 group, 20% from 18 to 25 group and rest
percentage covered by other groups.
5.4 Questionnaire for Retail Deposit (Liability)
Product
5.4.1 Mention five reputed banks in Bangladesh.
SI No. Name Interviewees
No. of persons Percentage (%)
1 Standard Chartered
Bank
13 26
2 DBBL 12 24
3 The City Bank 12 24
4 Brac Bank 7 14
5 Prime Bank 6 12
Total 50 100
80
70%
30%
Yes
No
Retail Products, with special focus on Retail Finance Center (RFC)
Interpretation: From the above data it is observed that The City Bank ranks jointly
second with DBBL, among the brand recall in terms of retail deposit products.
5.4.2 Have you ever deposited your money in any
bank?
SI No. Comments Interviewees
No. of persons Percentage (%)
1 Yes 35 70
2 No 15 30
Total 50 100
Interpretation: Answers of the clients indicate that most of them have deposited their
money in a bank.
5.4.3 (If yes) mention the name of the bank.
SI No. Name Interviewees
No. of persons Percentage (%)
1 Standard Chartered
Bank
11 31.43
2 The City Bank 10 28.57
3 DBBL 8 22.86
4 Brac Bank 5 14.28
5 Prime Bank 1 2.86
Total 35 100
81
0%
10%
20%
30%
40%
SCB City DBBL Brac Prime
87%
13%
Yes
No
Interest Rate
Inital Deposit
Minimum
Balance
Availability
Retail Products, with special focus on Retail Finance Center (RFC)
Interpretation: The table shows that a good percentage of customers have deposited
their money in The City Bank.
5.4.4 (If no) Do you intend to deposit your money in a
bank in future?
SI No. Comments Interviewees
No. of persons Percentage (%)
1 Yes 13 86.67
2 No 2 13.33
Total 15 100
Interpretation: The collected data shows that most of the customers without having a
deposit account would like deposit in the future.
5.4.5 In terms of retail deposit products, which things do you consider
most?
SI No. Reason Interviewees
No. of persons Percentage (%)
1 Interest rate 20 40
2 Initial deposit 13 26
3 Minimum balance 9 18
4 Availability 8 16
Total 50 100
82
86%
14%
Yes
No
77%
23%
Yes
No
Retail Products, with special focus on Retail Finance Center (RFC)
Interpretation: From the above analysis, it is found that most of the customers are
seeking more profitable interest rate against their deposits.
5.4.6 Do you know about the retail deposit products of The City Bank?
SI No. Comments Interviewees
No. of persons Percentage (%)
1 Yes 43 86
2 No 7 14
Total 50 100
Interpretation: It is evident that most of the customers have knowledge about the
deposit products of The City Bank.
5.4.7 (If yes) Are you planning to deposit your money in The City Bank?
SI No. Comments Interviewees
No. of persons Percentage (%)
1 Yes 33 76.74
2 No 10 23.26
Total 43 100
Interpretation: From the above data, it is clear that most of the customers are willing to
deposit their money in The City Bank.
83
Interest Rate
Inital Deposit
Minimum
Balance
Others
50%
30%
20%
Smot h operat ion
Servic e
Locat ion
Retail Products, with special focus on Retail Finance Center (RFC)
5.4.8 (If yes) Why are you thinking of choosing The
City Bank?
SI No. Reason Interviewees
No. of persons Percentage (%)
1 Interest rate 13 39.40
2 Initial deposit 10 30.30
3 Minimum balance 6 18.18
4 Others 4 12.12
Total 33 100
Interpretation: The table indicates that most of the potential customers are willing to
deposit because they are content with the interest rate and the initial deposit.
5.4.9 (If no) What is your requirement?
SI No. Requirement Interviewees
No. of persons Percentage (%)
1 Smooth operation 5 50
2 Service 3 30
3 Location 2 20
Total 10 100
84
36%
30%
30%
4%
Advertisment
More unique
Features
To place
available ATM
booth
No Comments
Retail Products, with special focus on Retail Finance Center (RFC)
Interpretation: It seems that the customers expect better service and operation from the
bank.
5.4.10 Suggestion
SI No. Suggestion Interviewees
No. of persons Percentage (%)
1 Advertisement 18 36
2 More unique features 15 30
3 To Place Available
ATM Booth
15 30
4 No comments 2 4
Total 50 100
Interpretation: From the above analysis it seems that the clients demand more unique
offers from the bank.
5.5 Questionnaire for Retail Loan (Assets)
Product
5.5.1 Mention five reputed banks in our country.
SI No. Name Interviewees
No. of persons Percentage (%)
1 Standard Chartered
Bank
13 26
2 Brac Bank 13 26
3 The City Bank 12 24
4 Prime Bank 8 16
5 Dhaka Bank 4 8
85
44%
56%
Yes
No
0%
5%
10%
15%
20%
25%
30%
SCB Brac
Bank
City
Bank
Prime
Bank
Dhaka
Bank
Retail Products, with special focus on Retail Finance Center (RFC)
Total 50 100
Interpretation: It has been observed that The City Bank has occupied the third position
in terms of brand recall among the clients.
5.5.2 Have you ever taken retail loan from any bank?
SI No. Comments Interviewees
No. of persons Percentage (%)
1 Yes 22 44
2 No 28 56
Total 50 100
Interpretation: Answers of the clients indicate that most of them have not taken any
retail loan yet.
5.5.3 (If yes) Mention the name of the bank.
SI No. Name Interviewees
No. of persons Percentage (%)
1 Brac Bank 7 31.82
2 The City Bank 6 27.27
3 Standard Chartered 4 18.18
86
61%
39%
Yes
No
32%
27%
18%
14%
9%
Brac Bank
City Bank
Standard
Chartered
Prime Bank
Dhaka Bank
Retail Products, with special focus on Retail Finance Center (RFC)
Bank
4 Prime Bank 3 13.64
5 Dhaka Bank 2 9.09
Total 22 100
Interpretation: It has been observed that The City Bank has good percentage of retail
customers for bank loan.
5.5.4 (If no) Do you intend to take retail loan in future?
SI No. Comments Interviewees
No. of persons Percentage (%)
1 Yes 17 60.71
2 No 11 39.29
Total 28 100
Interpretation: The comments show that most of the customers are looking for retail
loan.
87
82%
18%
Yes
No
42%
28%
16%
14% Interest Rate
Installment
Availability
Early Settlement
Retail Products, with special focus on Retail Finance Center (RFC)
5.5.5 In terms of loan, which things do you consider
most?
SI No. Reason Interviewees
No. of persons Percentage (%)
1 Interest rate 21 42
2 Installments 14 28
3 Availability 8 16
4 Early settlement 7 14
Total 50 100
Interpretation: From the above analysis, it is found that most of the customers are
seeking suitable interest rate and favorable installment process.
5.5.6 Do you know about the retail loan of The City Bank?
SI No. Comments Interviewees
No. of persons Percentage (%)
1 Yes 41 82
2 No 9 18
Total 50 100
Interpretation: From the above analysis, it is found that most of the customers are
aware of The City Banks retail product.
88
49%
27%
24%
Interest rate
Low processing
Time
Installment
Yes
No
Retail Products, with special focus on Retail Finance Center (RFC)
5.5.7 (If yes) Are you planning on taking retail loan from
The City Bank?
SI No. Comments Interviewees
No. of persons Percentage (%)
1 Yes 33 80.49
2 No 8 19.51
Total 41 100
Interpretation: From the above analysis, it is found that most of the customers are
willing to take retail loan from The City Bank.
5.5.8 (If yes) Why are you thinking of choosing The City
Bank?
SI No. Reason Interviewees
No. of persons Percentage (%)
1 Interest rate 16 48.49
2 Low Processing
Time
9 27.27
3 Installment 8 24.24
Total 33 100
89
36%
24%
32%
8%
Advertisment
More unique
Features
To reduce
service charge
No Comments
6 2 %
3 8 %
S m o t h o p era t i o n
S e rvi c e
Retail Products, with special focus on Retail Finance Center (RFC)
Interpretation: From the above analysis, it is observed that most of the clients are
satisfied with the interest rate and installment procedures of The City Bank.
5.5.9 (If no) What is your requirement?
SI No. Requirement Interviewees
No. of persons Percentage (%)
1 Smooth
operation
5 62.50
2 Service 3 37.50
Total 8 100
Interpretation: From the observed data it seems that the customers expect better service
from the bank.
5.5.10 Suggestion
SI No. Suggestion Interviewees
No. of persons Percentage (%)
1 Advertisement 18 36
2 To Reduce Service
Charge
16 32
3 More unique features 12 24
4 No comments 4 8
Total 50 100
90
Retail Products, with special focus on Retail Finance Center (RFC)
Interpretation: The responses of the clients indicate that they expect more unique
features offered by the bank.
6.1 Findings
The City Bank Ltd. started its journey based upon the basic concept of better customer
relationship. During my internship program and by the time of when the report was
being prepared and from my personal experience, I have found some banking activities
which I think must bring some changes.
Incase of services offered by all private banks in our country, The City Bank
Limited, has maintained high quality
Since the Government has imposed some new rules regarding private banking
operation, The City Bank Limited easily cope up the given rules
Adopting, Islamic Banking concept gives a new dimension in their services
The Financial Condition of CBL is very strong. Its Loan and Deposit Quality is
better than most other Private Commercial Banks in Bangladesh
ATM Cards of CBL give the Customers 24-hours Banking Facilities from
his/her Accounts
Marketing Policy of the Bank is not strong enough to attract Potential Customers
CBL has no separate marketing department for their marketing program
91
Retail Products, with special focus on Retail Finance Center (RFC)
Most of the business applicant applying their loan for approval on the basis of
overdraft accounts
The bank is very much careful about providing loans only on the basis of
personal relationship or V.I.P relationship
Management consists of Knowledgeable and authoritative personnel
6.2 Recommendation
In order to get competitive advantage & to deliver quality service, top management
should try to modify the services. For the improvement of the service the following
measures should be taken:
= Improve office atmosphere to give customers better feeling
= For customers convenience, CBL should provide more personnel to
deliver faster services to their honorable customer
= Loans should not be provided only on the basis of inter-personal
relationship with the clients
= Decision making authority should be decentralized to some extent to
expedite the lending procedure
= Check Book & Debit Card delivery time needs to be quickened and CBL
needs to be liberal in issuing Counter Check of Customers required amount
= In some case rural area is profitable. So, the
bank should provide loans in the rural areas
92
Retail Products, with special focus on Retail Finance Center (RFC)
= CBL needs to advertise through various Media about Credit Cards,
ATM Cards, Tele Banking and its other Products and Services
= CBL should concentrate more on its deposit products and offer more
attractive interest rates than those offered by any other bank
= Ensure proper communication system and maintenance of files &
machineries should be modernized
= More interest should be paid on deposit account so that customers are
convinced to deposit their money in bank
= Branches should have a separate section to analyze the financial
statement for fining its liquidity, profitability & ownership ratios
= In CBL job rotation is fully absent. Job rotation is very important to
make the all the employees from every department more efficient
6.3 Conclusion
Banking sector of Bangladesh is becoming more competitive and tensed as days are
passing by and it is not because of new entrants in the banking world but also because of
recent strict regulations of the government. CBL is a strong, effective and forward-
looking, modern local bank with a record of sound performance. It is a new generation
bank. It is committed to provide high quality financial services to contribute to the
growth of GDP of the country and the growth of industrialization, boosting up export,
creating employment opportunity for the educated youth, raising standard of living of
limited income group and overall sustainable socioeconomic development of the
country.
The bank has a vision to be the best private commercial bank in Bangladesh in terms of
efficiency, capital adequacy, asset quality, dynamic management, etc. It is now one of
the top most profitable private commercial bank in the country. The bank is maintaining
a well-structured communication from top to bottom level. The work experience in The
City Bank Ltd., Foreign Exchange Branch for the period of internship program was very
93
Retail Products, with special focus on Retail Finance Center (RFC)
educating. All officers of this branch were cooperative and very friendly in their attitude.
At the same time, the service provided by the officers of this branch is praiseworthy
compared to other competitive private and foreign banks.
As a concluding remark, I would like to say that the bank has been able to attain a
leading role with 28 years of success story. But to remain unrivalled among other new
generation banks, it has to overcome the new challenges posed by them. They must also
emphasize on the domestic scenario more closely and analyze any certain trends and
strategies of their competitors. The bank must accept any failures and consider these as a
persuasion to pursue future goals instead of looking back on the failures and it must
keep looking forward to playing an important role in our economy.
Bibliography
= www.thecitybank.com
= www. abbank .com. bd
= www. bracbank .com
= www. primebank .com. bd
= Annual Report 2009 of The City Bank
= Statements of affairs (Daily), The City Bank Ltd.,
Head Office.
= Interview with the senior officers of The City
Bank Ltd., Head Office.
94
Retail Products, with special focus on Retail Finance Center (RFC)
= Khan, Mohammad Khalid, Banking System in
Bangladesh: 1972-1982
= Finance Ministry, Bangladesh Government,
Operational Condition of Banks and Financial
Institutions, 2010-2011
= Economic Division, Bank O Arthik
Protisthansamuher Karjyabalee 20010-20011,
Ministry of Finance, Dhaka
= Hussain. S. Masud and Islam. Md. Ashraful,
Banking In Bangladesh: A Historical Perspective,
Vol. xxii, No. 2, Page: 309-323, December 2001,
Journal of Business Studies, University of Dhaka,
Dhaka
Appendix:
Questionnaire for Customers
Name:........................................................................................................
95
Retail Products, with special focus on Retail Finance Center (RFC)
Gender: Female Male
Age Range: 18-25 26-35 36-45
46-55 55-65 66 or older
(Retail Deposit)
1. Mention five reputed banks in Bangladesh.
=
=
=
=
=
2. Have you ever deposited your money in any bank?
Yes No
3. (If yes) Mention the name of the bank.
=
=
=
=
4. (If no) Do you intend to deposit your money in a bank in future?
Yes No
5. In terms of retail deposit products, which things do you consider
most?
Interest rate Initial deposit
Availability Minimum balance
6. Do you know about the retail deposit products of The City Bank?
Yes No
7. (If yes) Are you planning to deposit your money in The City Bank?
Yes No
96
Retail Products, with special focus on Retail Finance Center (RFC)
8. (If yes) Why are you thinking of choosing The City Bank?
Interest rate Initial deposit
Minimum balance Others
9. (If no) What is your requirement?
Smooth operation Service
Location Others
10. Suggestion
Advertisement More unique features
No comments To Place Available ATM Booth
(Retail Loan)
1) Mention five reputed banks in Bangladesh.
=
=
=
=
2) Have you ever taken retail loan from any bank?
Yes No
3) (If yes) Mention the name of the bank.
=
=
=
=
4) (If no) Do you intend to take retail loan in future?
Yes No
5) In terms of loan, which things do you consider most?
Interest rate Installments
97
Retail Products, with special focus on Retail Finance Center (RFC)
Availability Early settlement
6) Do you know about the retail loan of The City Bank?
Yes No
7) (If yes) Are you planning on taking retail loan from The City
Bank?
Yes No
8) (If yes) Why are you thinking of choosing The City Bank?
Interest rate Low Processing Time
Installment Others
9) (If no) What is your requirement?
Smooth operation Service
Others
10) Suggestion
Advertisement To Reduce Service Charge
No comments No comments
98

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