Main NCCBL Report

METHODOLOGY OF THE STUDY
Report should be prepared to consume and observing practical situation. It is carry

heavy important it was made by analysis the primary data. Because the reporter before
submitting report he/she must work report related activities in open field, and looking
facts inside of the event. This report is based on my observation of activities and
performance of NCC Bank Limited, Agrabad Branch. During the period of my
internship I have performed practical work in various departments of the bank and
gathered both primary and secondary data to prepare this report, which are detailed
below:
1) Primary Data:
 Practical Deskwork.
 Personal interview with the officer of NCC Bank Limited.
 Face to face conversation with the clients.
 Expert opinion
 Discussion with the faculty members of the BGCTUB
 Make telephone call.
2) Secondary Data:
 Annual report of NCC Bank Limited.
 Bank’s statements.
 Manual of Bangladesh Institute of Management (BIBM).
 File study, scheme profile and booklets of various Banks.
 Preparing questionnaire.
Internship Report 1
OBJECTIVE OF THE STUDY
The main objective of the research is to over view the banking activities in
Bangladesh. To attain the main objectives the specific objective are as
follows:
1. To gather practical experience and knowledge and to apply those in

practical field.
2. To be acquainted with the practice of modern banking business.
3. To gather knowledge about the banking products and their marketing in

the competitive situation.
4. To measure the NCC Bank Limited has performance and financial

health under regulatory authorities.
5. To identify the factors affected the banking activities.
6. To identify the pink point problems encountered by the clients.
7. To foot forward to recommend for increasing the Banking service of

NCC Bank Limited.
8. To acquaint with the services and facilities rendered by NCC Bank

Limited.
9. To know the promotional activities of NCC Bank Limited.
10. To forecast the documents needed for general banking, accounts,

import, export and credit.
Internship Report 2
LIMITATION OF THE STUDY
It is tuff to identify limitations that where I had to work three months time as an
internee. But in general limitation may come from different side in different way.
Typically internship program is the systematic gathering, recording and analyzing of
data on the given subject. Inspire of best efforts and better facilities I had to face some
silly problems. I mention here to my own works limitation when I worked in the NCC
Bank Limited in Agrabad Branch.
 So far I have observed over there, they have not so strong believed and
confidence over the internee’s activity and also to disclose omit able banking
activity.
 I got very little opportunity to do work practically after understanding the

theoretical lesson which was very crucial to me.
 Though I got three months time but to me the time is not sufficient enough to
complete and understand all the necessary activities relating to the banking
services.
 I had to face prohibition when I tried to work in depth.
 Sometime I had to face some unexpected situation due to the manager and
regional manager’s strictness over the employee.
 I am sorry to say that I didn’t find any encouragement from the part of the
branch’s chief that I have got from others.
 Most of the customers were found reluctant to express their dis-satisfaction in

bank’s services.
Modern banks cover a wide area so it is not possible to know every thing about a bank
within this limited time. I just observed what the bankers were doing and how so,
that’s why this report seems to some extent a theoretical one.
Internship Report 3
1.0 BACKDROP OF THE NATIONAL CREDIT AND
COMMERCE BANK LIMITED
National Credit and Commerce Ltd, formally the National Credit Limited, was
primarily established as an Investment Company in November 1985 to further the
business activity and industrialization in Bangladesh to create new employment
opportunities, by acting as a catalyst for the attraction of new entrepreneurs, capital,
skills, and technology. This bank is a conversion of erstwhile National Credit Ltd
(ncl), an investment company largest of its kind in the established on 25 Nov 1985.
NCC bank has been converted to a schedule commercial bank in may 1993 under a
Banking License issued by Bangladesh Bank, the Central Bank of the country to
operate as a commercial Bank and also registered under the Company Act 1994, is
entitled to commence business as a Public Limited Company with Tk. 1000 Million of
authorized capital & Tk.90 million of paid up capital by group of successful
entrepreneurs.
The bank has made significant progress within a very short time due to its very
competent board of directors, dynamic management and development of various
customer friendly new products such as deposit scheme and loans. National Credit
and Commerce bank Limited is not only conventional bank. It’s a modern,
progressive Commercial Bank in private sector dynamic product oriented commercial
bank and plays a constructive role in the economic development of the country. NCC
bank is the first private bank that introduces heavy credit facility for investment and
others credit scheme along with modern products and services in the banking sector in
order to bring about qualitative changes in the economy and lives of people of the
Bangladesh. NCCBL through its steady progress and continuous success by now
earned the reputation of being one of the leading private sector banks of the country.
NCC Bank mainly caters to the import trade financing. Bulk importers of consumer
durable, food grains industrial raw materials are its customers. The bank has financed
in textile and apparels sectors. The bank has a trend of choosing customers from
Internship Report 4
diversified groups. The bank has first class customers in the corporate sectors in the
country as well as multinational company.
1.1 Short Profile Of NCCBL
Date of commencement of
Business as full fledged
Commercial Bank MAY 17 1993
History
This bank is a conversion of erstwhile National Credit
Ltd (ncl), an investment company largest of its kind in
the established on 25 Nov 1985.
Registered Office : 7- 8 Motijheel C/ADhaka- 1000, Bangladesh
Authorized Capital Tk.1000.00 million
Paid Up capital Tk.500.00 million
Zone O6
Branches
48
Employees
1000
Profit after tax & Provision (2005) TK.352.08( million)
Name of the Chairman Mahbub Alam Tara
Name of the Managing Director Nurul Amin
Core product of NCCBL Financial Solution
Basic Product of NCCBL Deposit and Credit Facility
Services Provided Deposit Scheme, Loan & Retail Banking
Marketing Strategy
Diversification of products and : Corporate Banking, Retail Banking, Online Banking.
services
Banking Operation System Both Conventional & Retail Banking System

SWIFT NCCLBDDH
: Member of SWIPT, Member of SWIFT, Online Banking.
Online
Banking.
: Micro Banking, Micro Banking, Developed By- Data EDGE, India
Developed By- Data
EDGE, India
E- Mail nccbl @ bdmail. net
Website www. nccbank-bd.com
Management
Management is professional and experienced.
Management is headed by Mr. Anwar Ahmed. Mr.
Ahmed is a senior banker of the country having a long
banking career. He started his banking career with Habib
Bank Ltd. in 1962 as a probationary Officer. He joined
United Bank Limited in1964 as Manager and server
there in different important capacities. After conversion
Internship Report 5
of United bank Limited to Janata Bank after the
Independence of the country he worked there until 1982.
He was lastly posted as Asst. General Manager of the
Credit Division at Head Office. He then joined Arab
Bangladesh bank Limited as Vice President in 1983
when private banking system has just started in the
country. He worked with Arab Bangladesh bank until
1994 and left it when he was Executive Vice President.
In 1994 he joined five continents Credit Company
limited in Hong Kong as its Chief Executive Officer and
worked there for two years. In 1996 he Joined Al-Baraka
Bank Bangladesh Limited as it’s Executive President
and worked there until 2001. In January 2001 he joined
NCC Bank Limited as Managing Director.
Main Share Holders Main share holders comprise leading industrialist and
business magnets of the country. The board of
directors consists of 26 members. Most of the directors
are owners of large of business groups having high net
worth.
Main Customers
Due to the predecessor company’s involvement
investment financing sector of the country the bank
inherited its top corporate customers. Moreover the
bank is involved in import trade financing. Bulk
importers of consumer durable, food grains industrial
raw materials are its customers. The bank has financed
in textile and apparels sectors. The bank has a trend of
choosing customers from diversified groups. The bank
has first class customers in the construction sectors
involved in high rise building, heavy construction and
roads and high way construction.
1.2 Business Highlighting Factors of NCCBL
The Bank made an Initial Public Offer (IPO) in 1995.
The shares of the Bank are listed with both the Dhaka and Chittagong Stock
Exchanges since 1999.
The Bank is also a member of the both Dhaka and Chittagong Stock Exchanges.
The bank has been paying a reasonable dividend regularly.
The bank is one of the top 10 private Banks in Bangladesh based on the
profitability.
The Bank is one of the top 500 banks in Asia (listed in the Asia Week “Asia’s
largest 500 bank’s list for 2001”)
Internship Report 6
The NCC Bank’s success in short period in comparison with other second-generation
bank achieved due to the endeavor and dedication of a highly motivated and
experience team of officers and strategies in market policy adopted by the bank
management. Experienced research team of the bank is working to develop new
strategies and products to cope with changing global economic scenario and domestic
demand. The NCC Bank Limited automated most of its branches with computer
network to keep pace with time and in harmony with national and international
economic activities and with the object to render modern services in accordance with
the competitive commercial demand.
1.3 Company Philosophy
The motto or philosophy of the bank is “a bank of your choice”. National Credit &
Commerce Bank Limited if they can meet maximum client with their attractive
product and service offer in less time with efficiency, then they will be able to
accomplish a successful business in the world of banking.
1.4 Company Objective
National Credit & Commerce Bank Limited is organized to provide commercial

investment bank service to all type of customers arranging from small enterprises to
big business firms. In this regard, it gives emphasize on the economy like industry,
housing and self employment, besides the bank aims to provide different customer
friendly deposit and loan products to fulfill the banking needs of the individual
customers.
1.5 Vision:
The purpose of the bank is to become “the bank of your choice” in the communities
we serve. We accomplish this by offering to our customers the financial services they
expect while providing a return to our owners. In accomplishing this mission, the
bank has now been free from all the nature of problem bank through fulfilling all the
conditions set by the central bank. We proudly say: “NCCB is profit making and
Internship Report 7
problem free”. NCCB has offered 20 per profit cent profit to its shareholders in the
year 2000.
1.6 Mission:
Philosophically, a bank is a financial institution, which accepts depositors’ money for

safe- keeping and contracts with the depositors to lend this money at interest to
individuals who are in need of its use and who can give ample security that the loans
will be paid. From the profits made from lending money at interest the banker agrees
to pay the legitimate depositors a fixed sum of interest besides safe- guarding the
deposits.
1.7 Efforts are focused:
To development of newer bank products and services to delivery higher customer

satisfaction in all areas of banking activities with the aim to add increased value to
shareholder’s investment and offer higher possible benefits to our customers.
1.8 Marketing Strategies:
To have sustained growth, broaden market share & improved range of products and
services.
Internship Report 8
2.0 BASIC PRINCIPLES
For the year 2004, Nurul Amin, the Managing Director of National Credit &
Commerce Bank Limited reminded all staff members about ten basic principles
about servicing customers:
1) We are a service business. Therefore, our objective is to give the Best Service
to our customers.
2) How we serve our customers is just as important as the services we provide.
3) Never preach to our customers. Learn from them.
4) Get to know our customers very well. Gain your customer’s confidence &
respect.
5) Keep your promises to our customers.
6) Be friendly and absolutely professional.
7) Our aim is to be an elite bank (not socially snobbish, but just the best).
8) Internal matters should never distract attention from customers’ affairs.
9) Character, resilience. Never allow yourself to be distracted from performing

excellently.
10) Finally, enjoy yourself.
2.1 FUTURE PLAN
Internship Report 9
The Strategies that NCCBL may apply for implementing future plan are
as follows: (On the basis of hypothecation)
Enhance the saving tendency by motivating people,

offering lucrative new product of savings scheme.
To inspire and motivate the new entrepreneurs by
offering various credit products.
To encourage the investment in private sector

independently or under syndication arrangement.
Boosting and mobilizing the savings of religious, urban
and rural people.
To have an ATM
To establish marketing department in each branch.
Managing and operating the Bank in the most efficient

manner to enhance financial performance and to control
cost of fund.
To strive for customer satisfaction through quality control
and delivery of timely services.
To review and update policies, procedures and practices
to enhance the ability to extend better service to
customers
To cultivate a working environment that fosters positive
motivation for improved performance.
To diversify portfolio both in the retail and wholesale
market.
To increase direct contact with customers in order to
cultivate a closer relationship between the Bank and its
customers.
Internship Report 10
To identify customers' credit and other banking needs
and monitor their perception towards our performance in
meeting those requirements.
To promote organizational effectiveness by openly
communicating company plans, policies, practices and
procedures to all employees in a timely fashion.
2.2 DYNAMIC INTEGRATION OF NCCBL
National Credit & Commerce Bank Limited is a second generation bank in

Bangladesh and has a strong position in the present competitive market. The
bank has not restricted itself to traditional function rather it has extended its
wings into numerous sectors. The NCC Bank Ltd has been trying to operate
its business with in an appropriate register. NCCBL is trying to develop its
goodwill among its client by offering its excellent services through General
Banking, Credit division & Foreign Exchange division. From my stand point
the working atmosphere of NCC Bank Ltd. is very stimulating. For being this
span of time of its operation, the bank is going to be a progressive & dynamic
financial institution in the country due to the following reasons.
 It gives a clear conception to the customer like a glass that the bank is too
much dynamic that we get from their season wise different credit
facilities and some other attractive and lucrative facilities for the new
customer. For instance; “Festival Loan Offer” in this year.
 Always trying to catch talent people in the bank by offering very much
attractive salary. A recruitment circulation containing with minimum 3
first class postgraduate and tk.21600 salary in the first year could be the
best example in favor of my statement (Daily Star June 2004).
 At present NCC Bank Limited becoming an adult position in the banking
sector of Bangladesh. In this establishment period huge sunk cost &
operating cost are incurred. That is why the bank is trying to reduce cost
proportionately through an effective management.
 Interest expenses of the bank is going to reduced proportionately
compared to interest income due to huge accumulating deposit as a result
the number of depositors is going to be increased.
 Other income of the bank is also going up due to increase of commission,
exchange & brokerage fees in the foreign exchange section.
 All this together with its adoption of modern trend of banking system has
enabled it to turn out as potential profiteering organization. My course of
internship in this bank had been the best part of gathering knowledge.
3.0 FINANCIAL OVERVIEW
Financial Highlights: (Figures in Million Tk.)

Year 1999 2000 2001 2002 2003
1 Authorized Capital 1000.00 1000.00 1000.00 1000.00 1000.00
2 Paid up Capital 275.88 275.88 303.47 379.34 531.07
3 Reserve funds other

62.42 170.73 357.67 516.11 678.90
reserve
4 Shareholders
equity((capital & 338.30 446.61 661.14 895.45 1209.97
reserve)
5 Deposits (base &
bank) 7503.26 10749.41 17705.85 16854.01 18365.83
6 Advances 3843.35 5414.87 10245.65 11211.39 12886.69

7 Investments 557.95 813.73 1274.46 1950.28 2046.10
8 Import business 9075.80 13827.90 17649.10 18696.70 19079.40
9 Export business 3299.30 6494.00 6182.50 6110.20 6900.60
1 Guarantee
530.09 887.80 2123.09 1579.09 1515.90
0
1 Total Income
859.36 1203.30 1925.55 2384.81 2283.37
1
1 Total Expenditure
691.51 947.64 1472.31 1955.03 1773.75
2
1 Operating profit
3 230.15 330.75 561.69 628.21 632.55
1 Profit before tax

4 167.85 255.66 453.24 429.78 509.62
1 Profit after tax

94.64 173.17 290.39 234.31 269.01
5
1 Fixed assets
6.01 21.85 32.84 105.67 87.45
6
1 Total assets
7 (excluding contra) 9606.79 11646.44 19125.19 19103.56 20815.62
1 Number of branches
12 14 17 18 48
8
1 Number of
9 employees 359 406 495 532 568
2 Number of foreign
0 correspondents 325 413 416 420 406
Table # 1
3.1 Shareholding
Analysis as on 31st December 2003

Range Value of % Of Number of % Of total
From To shares in share shareholder shareholder
Taka holding
1 500 16108400 3.03 1080 76.33
501 5000 33512500 6.31 247 17.46
5001 10000 12110000 2.28 16 1.13
10001 20000 27355500 5.15 19 1.34
20001 30000 25030000 4.71 10 0.71
30001 40000 21840000 4.11 6 0.42
40001 50000 21590000 4.06 5 0.35
50001 100000 94232200 17.74 14 0.99
100001 1000000 279290400 52.59 18 1.27
Total 531069000 100 1450 100
Table # 2
1% 5% 76% 18%
Diagram# 1
3.2 Financial Performance
Profit
Profit before tax
Profit after tax
600
500
400
300
200
100
0
1999 2000 2001 2002 2003
Chart # 1
Paid Up Capital
600 Paid up capital

531.07
500
400 379.34
303.47
300 275.88 275.88
200
100
0
1999 2000 2001 2002 2003
Chart # 2
3.3 Highlights on the overall activities of the bank for the year 2004
and 2005:
SL Particulars 2003 2002
1 Paid up capital 531069000 379335000
2 Total capital 1336280625 1005590044
3 Capital surplus/ deficit 231154204 85883152
4 Total assets 20815623157 19103568653
5 Total deposits 16850833278 14964010821
6 Total loans and advances 12886688559 11211393785
7 Total contingent liabilities and 7455746369 6823311444
commitments
8 Credit deposit ratio (%) 76.48 74.92
9 Percentage of classified loans 3.26 2.39
against total loans and advances
10 Profit after tax and provision 269007381 234310726
11 Amount of classified loans during 419952586 267862776
the year
12 Provisions kept against classified 162930150 201947000
loans
13 Provision surplus/deficit 9536150 -
14 Cost of fund (%) 7.24 8.41
15 Interest earning assets 17641413688 16258559696
16 Non- interest earning assets 3174209469 2845008957
17 Return on investment (ROI) 6.48 5.59
18 Return on assets (ROA) 1.29 1.23
19 Income from investments 132685600 108956710
20 Earning per share (Taka) 52.86 69.89
21 Net income per share (Taka) 50.65 61.77
22 Price earning ratio (Times) 4.75 3.78
Table # 3
3.4 CAMEL RATING OF NCC BANK LIMITED
CAMEL rating (C-Capital Adequacy, A-Asset Quality, M-Management, E-

Earnings and L-Liability) has some formula and standard level of values for
each measure for rating the bank’s performance as strong, satisfactory, fair,
marginal and unsatisfactory.
The rating formulas with its standards are given below:
1) CAPITAL ADEQUACY RATIO:
It is the ratio of capital and reserve (adjusted) to the risk weighted assets. The
main objective of this ratio to find out the proportion of reserve to the risky
assets that means the capacity to cover the risk with reserve. Incase of capital,
banks (Tier-1, Tier-2 Capital) have to maintain not less than 8% of total risk
weighted assets with at least 4% in Tier-1 capital and Tier-2 capital could be
100% of Tier-1 capital.
Capital Adequacy = Capital and Reserve (adjusted) * 100

Total Risk Weighted Assets
By calculating ratio Central Bank rates the bank according to their

performance. The rating system is given below:
Capital Adequacy Rating

Rating Remarks Rating scale (In Percentage)
1 Strong 9 and above
2 Satisfactory 8-8.99
3 Fair 7-7.99
4 Marginal 5-6.99
5 Unsatisfactory Less than 5
Capital Adequacy Rating Of NCC Bank Limited From 2001 to 2003 is as follows:
Years 2003 2002 2001
Capital & reserve/Total risk weighted assets 8.47% 8.86% 6.55%
Rating 2 2 4
Remarks Satisfactory Satisfactory Marginal
The above data shows an up warded trend over the last three years. In its beginning
two years NCC Bank Ltd. holds a satisfactory position in respect of capital adequacy
followed by marginal one.
2) Asset Quality Rating:
This is the ratio between classified loans to total loans. Loans and advances are the
assets of a bank. If a loan is made without prudential judgment that involves project
appraisal, proper repayment schedule, industry conditions and so many others the
loans and advances have every possibility to be classified. A higher amount of
classified loans indicate the inefficiency in management.
Asset Quality = Classified Loans * 100
Total Loans
Asset Quality Rating

Rating Remarks Rating Scale ( In Percentage)
1 Strong Up to 5
2 Satisfactory 5.01 to 10.00
3 Fair 10.01 to 15.00
4 Marginal 15.01 to 20.00
5 Unsatisfactory Above 20.00
This ratio shows an inverse relation unlike Capital Adequacy. Because the lesser the
amount of classified loans the better the position of asset quality. Classified loans
hamper not only the profit but also lessen the total assets of a bank. A higher amount
of classified loans causes a bank to keep higher amount of its fund unutilized as they
are kept aside as provision.
Last three years Asset Quality Position of NCC Bank Limited is as follows:
Years 2003 2002 2001
Classified loan to total loan 3.26% 2.39% 1.19%
Rating 1 1 1
Remarks Strong Strong Strong
NCC bank Limited shows a very strong asset quality for all the three years as it
contains very low figure of classified loans. So this bank can be said well asset quality
according to the international standard.
3) Management Rating
Management is the composition of capital adequacy, asset quality, earnings and
liquidity position. The average position of these four components represents the
management quality of a bank.
Management Quality = C+A+E+L
4
Management Rating
Rating Remarks Rating Scale (In Percentage)
1 Strong 1 to 1.49
3 Fair 2.5 to 3.49
5 Unsatisfactory 4.5 to 5
Management rating of NCC Bank Limited from 2001 to 2003 is as follows:

Year 2003 2002 2001
(C+A+E+L)/4 1.25 1.25 1.75
Rating 1 1 2
Remarks Strong Strong Satisfactory
Therefore the performance of the bank shown by other ratios will reflect the
performance of the management. The rationale behind this is that the efficient
handling of the capital ratio, asset quality, and earning and liquidity ratio will cause a
good management rating.
The NCC Bank Limited has a good management rating for last three years.
4) Earning Rating
Earning ratio is the ratio between net income and total assets. It measures that how
much the bank earns utilizing its total asset. If earning is higher, then bank is certainly
in good position.
Earning Ratio = Net Income * 100
Total Assets
Earnings or Return on Assets Rating

1 Strong .85 and above
2 Satisfactory .65 to .84
3 Fair .45 to .64
4 Marginal Below .45
5 Unsatisfactory Losses
To observe the earning scenario of a bank Return on Assets is considered to be the

measuring tool under CAMEL rating. ROA shows that how many times the bank
earns against its total asset.
Below we can see the ROA of NCC Bank Limited:

Years 2003 2002 2001
Return on Assets 1.29% 1.23% 1.13%
Rating 1 1 1
Remarks Strong Strong Strong
The above figure shows that there existing a stable situation in earning ratings over
the last three years. Each of the last three years the bank has considerably done their
activities thus the above table is focusing strong position of ROA.
COMPOSITE RATING
Composite rating is the average of all ratings.

Composite = C+A+M+E+L
5
Composite Rating
1 Strong 1 to 1.49
3 Fair 2.5 to 3.49
5 Unsatisfactory 4.5 to 5
Composite Rating Of NCC Bank Limited for the last three years are as follows:
Year 2003 2002 2001
C 2 2 4
A 1 1 1
M 1 1 2
E 1 1 1
L 1 1 1
Composite 1.2 1.2 1.8
Rating 1 1 2
Remarks Strong Strong Satisfactory
Comments:
In the last two years the bank’s composite rating is ‘1’, which means that it is in a
strong position. That is, the bank is basically sound in every respect; findings are of
minor nature, handle routinely; resistant to external economic and financial
disturbances and no cause of supervisory concern. But in the year of 2001 the
composite rating was ‘2’, which means that the bank’s performance was in a
satisfactory level. Which also focus that it was fundamentally sound; findings are of
minor nature, can be handled routinely; withstand business fluctuation; supervisory
concerns were limited.
3.4 Trade Finance and International Correspondent Banks

Successful companies today are fully aware that they need to be able to rely on the
services of a bank that can handle international trade with a good hand. Ever since its
conversion into a full-fledged bank in 1993, NCC Bank has been an accomplished
“Trade Finance” bank. With a highly professional team experienced and competent
professionals we are able to provide a wide range of services to companies engaged in
international trade. NCC Bank has also positioned itself as an established
Correspondent Bank. Through a worldwide network of 260 correspondent banks NCC
Bank is present in all key areas of the globe. Our ambit of correspondents includes top
ranking international banks with a global reach. Please see the list of our
Correspondents bellow: - Amsterdam, Athens, Beijing, Brussels, Cairo, Colombo,
Copenhagen, Dubai, Frankfurt am Main, Geneva ,Helsinki ,,Hong Kong, Jakarta,
Karachi,Kathmandu, Kolkata (Calcutta), Kuala Lumpur, Lisbon, London, Madrid,
Makati City, Manila, Melbourne , Milan, Moscow, Mumbai, New York, Oslo, Paris,
Bank of Bhutan, Poland, Shanghai, Siena, Singapore , Sydney, Stockholm, Taipei
,Tokyo , Toronto ,Utrecht , Vienna , Yangon, Zurich.
3.5 Societal Marketing Activities of NCCBL
All the business firms are liable to society for their growth-able, sustainable
and others activities. Bank is the institution that also performs as societal well
being for their benefit as well as maintaining long-term relationship with
customer.
For societies well being NCCBL has also perform the following function:
 For this reason, NCCBL establish aid foundation, they every year they
donate 1% of profit in aid foundation for societal work.
 For establishing “cancer hospital” bank donate Tk.20.00 lac.
 Last year, NCCBL provide TK.40.00 lac for flood affected people.
 They establish special fund for treatments of lower level employees.
 Bank always trying to relieve poor people.
 Every year bank arranges seminar and symposium on societal current

issue that give a path for developing of the economic and society.
4.0 "SWOT" ANALYSIS
SWOT is the snap for the internal strengths & weaknesses of a firm & the
environmental opportunities & threats facing that firm. SWOT analysis is an
easy technique through which managers create quite overviews of Company's
strategic situation. By having SWOT analysis manager can easily keep pace
with the new challenge in the forth coming days. A good fit maximizes firms'
strengths & opportunities & minimizes its weakness & threats.
STRENGTH:
Strength is resource skill or other advantage relative to competitors & the
needs of the markets a firm serves or expects to serve.
a) Company republication: NCCBL has already gained reputation in banking

industry in this country. NCCBL has already established affirm toting in
the banking sector having tremendous growth in the profits & deposits.
b) Sponsors: NCCBL has been founded formed by a group of eminent
entrepreneurs of the country having adequate financial strength. The
sponsor’s directors belonging large industry & conglomerates of the
country.
c) Top management: The top management of the bank is also a major
strength for the NCCBL & contributed heavily towards the growth &
development of the bank. The top management officials all have had
reputed of banking experience, skill & expertise.
WEAKNESS:
A weakness is a limitation or deficiency in resources skills or capabilities that

seriously impedes a firm’s effective performance. NCCBL weaknesses are as
follows:
a) Advertising & promoting:This is the major set bank for NCCBL & one of
its weakest points. NCCBL does not pursue on aggressive marketing
comparing to others. It is not in the lime light like other banks. NCCBL
does not have any display boards.
b) Disguised employment: Currently there are "Trombone heads but few

hands" and this is related to the problem of reference appointment.
There are people who are only drawing salaries at the end of the month
but not have a part of contribution towards the organization. On the
contrary, there are people who worked hard but are not appreciated
accordingly.
c) Limitation of PC Bank: PC bank is not comprehensive banking software. It
is desirable that a more comprehensive banking system should replace
PC bank system.
d) Team work: At NCCBL having mid level & lower level management.
There are no team works. But it is obvious that many jobs are
performed in groups of two or three in order to reduce the work load &
enhance the process of completion of the job.
OPPORTUNITIES:
NCCBL can pursue a diversification strategy in expanding its current line of

business. The management considers options of starting retail banking or
diversifies into fast banking & cons odium business by expanding business
port folio, it might be possible for NCCBL to reduce business risk.
THREATS:
a) Multinational Bank: The rapid expansion of multinational bank poses a

potential threat to the new private commercial Banks. Due to the
booming energy sector, more foreign banks are expected to operate in
Bangladesh. Since the foreign banks have spectacular financial
strength, it will poses threat to local banks to a certain extent in terms
of grabbing the lucrative clients.
b) Upcoming Banks: The upcoming private local banks can also pose a threat
to the existing commercial Bank more of the local private banks may
emerge. If that happens the intensity of competition will rise further &
banks will have to develop new strategies to compete the fairing banks.
c) Contemporary banks : The contemporary banks of NCCBL like Jamuna
bank, prime bank, one bank, southeast bank, exim bank, bank Asia are
its major rivals. They are carrying out aggressive comparing to
lucrative, corporate clients as well as long time depositors. NCCBL
should require vigilant absent the steps taken by these banks as these
will in turn affect NCCBL strategies.
d) Retail Banking: Retail banking of some foreign banks and others local
bank become a threat for NCCBL. Because they operate mainly
corporate and merchant banking and as retail banking as small portion.
So that they face problem some how.
5.0 INNOVATION IN BANKING PRODUCTS IN

BANGLADESH
Innovation is the art of overcoming constraints towards development. It occurs when

a new or changed product or services is introduced to the market, or when a new or
changed process is used in a commercial situation. No organization can remain happy
with the existing products to cope with the changing demand of the customers as well
as to face competition with the competitors. Banks are no exception to this situation.
The achievements of the banking system in Bangladesh in innovating products are not
encouraging in the post independence era. There has been hardly any innovation of
banking products in Bangladesh in this period. Of course, bank brought required
several products in Bangladesh which are already in use in others countries. In this
process, besides traditional banking products, banks have recently introduced some
innovative products such as consumer product financing, credit card, merchant
banking, leasing, loan syndication, etc. in terms of asset product base; preferential and
installment saving deposits, insurance linked deposit schemes, etc. in terms of liability
product base; however, still some products being used in other countries are yet to be
introduced in the banking system of Bangladesh.
The economy of Bangladesh has been growing gradually, and as such it needs the
support of a financial structure, which is responsive to the needs of development. In
the process of development of Bangladesh, banks will have to shoulder more
responsibilities than before for meeting the financial needs of customers of different
sectors of the economy. For this, banks must develop new products to serve their
clients. This will enable banks to move away from the traditional banking and make
them responsive to economic needs. In this perspective, it is desirable to examine the
major innovations in banking products which have taken place, and which are yet to
make entry in the banking sector of Bangladesh.
5.1 Products Introduced in Banks of Bangladesh
In line with changes in economic policies and with the implementation of financial
sector reforms, the banking sector of Bangladesh witnessed the introduction of
prudential norms, liberalization of interest rates, abolition of directed lending, and
entry of new private banks. In this environment, banks in Bangladesh introduced

several products over time. An attempt has been made here to locate the products,
which have been adopted in banks of Bangladesh.
5.2 Deposit Products
There are several deposit options available to the customers of banks in Bangladesh.
Each deposit option differs with regard to name, interest rate, maturity, terms and
liquidity. These are created to satisfy a board range of depositors. Nationalized
commercial banks (NCBs) are the initiators of innovation of deposit products. Before
1998, they have evolved and used several deposit products (Table #). Private
commercial banks (PCBs) keep eyes on deposit products more aggressively.
Banks Earlier introduction ( before 1998) Recent Introduction

( After 1998)
Nationalized Current Deposit, Call Deposit, Short NIL
Commercial Term Deposit, Savings Deposit, Fixed
Banks Deposit, Gift Cheque, Deposit Pension
Scheme, Bearer Certificate of Deposit,
Non resident Foreign Currency Deposit (
NFCD), Resident Foreign Currency
Deposit ( RFCD), Deposit in Foreign
( WES), Retention quota Account, Haji
Deposit.
Private According to NCBs plus Staff Group Monthly Profit Based
Commercial Insurance Deposit, High Performance Deposit Scheme,
Banks ( Except Deposit, Staff Security deposit, Monthly Child Education Care
Islami Bnak) Saving Scheme,. Scheme, Money
Multiplier Scheme,
Instant Earning
deposit Scheme,
Contributory Savings
Scheme, Special
Saving Schemes.
Education Deposit
Scheme, Senior
Citizen Scheme, Haji
Saving Scheme,
Marriage Deposit
Scheme.
Specialized NCBs Khudra Sanchay
Banks ( SBS) Scheme, Teachers
Saving Scheme
Islamic Al Wadiah, General Mudaraba, Term Foreign Currency
Commercial Mudaraba, Special Mudaraba Account, Deposit, Privileged
Banks Mudaraba Saving Bond, Mudaraba, Citizen Scheme,
Mudaraba Monthly haji Deposit, Mudaraba Muhar
Mudaraba Installment term Deposit, Savings, Mudaraba
Convertible taka Deposit. Wakf
Foreign Current Deposit, Savings Deposit, Fixed NIL
Commercial deposit, Special Notice Time Deposit,
Banks Foreign Currency Deposit.
Table # 4
It appears from the above that deposit collection efforts by offering new deposit
schemes have been confined more to the urban area than to the rural area. Except few
products like ‘Kudra saving scheme’ all deposit products were designed for city base
people. Because of the assumptions of bank people that rural people have low income
and cannot save. Another observation is that innovation of deposit scheme
concentrated more on household sector. Other sector like public enterprise and private
enterprise were not highlighted sufficiently in introducing new deposit scheme.
Finally, schemes were introduced more for collecting higher interest bearing deposit
(fixed deposit) as compared to non interest bearing (current depositor) and lower
interest bearing (saving) deposit.
5.3 Loans and Advances
When money is deposited with a bank, the bank, in turn, creates assets through
disbursement of loan and advances in different modes. NCBS do these functions
under three board heads namely continuous loans, demand loans, and term loans.
Continuous loan consists of two important credit portfolios of commercial banks,
namely overdraft and cash credit. Cash credits are given against pledge or
hypothecation of various assets of a client. Borrowers prefer this form of advance
because of liberty to draw the amount as when required and payment of interest on
outstanding. Apart from these, banks sometimes grant unsecured overdraft called
temporary overdraft. Demand loan include import financing, export financing, bridge
loan/ financing etc. private commercial banks are active in the race of product
innovation relating to loans and advances. Table# shows that PCBs have adopted
almost all products available in NCBs. Besides, lease financing, hire purchase,
overdraft against credit card are the important products in PCBs credit lines. After
1998, PCBs have also introduced some new products like syndicate loan, transport
loan, house building loan, loan for treatment, any purpose loan and education loan etc.
Types of Loans and Advances by Category of Banks
Banks Earlier Introduction ( before 1998) Recent

Introduction
( after 1998)
Nationalized Continuous Loan: Secured overdraft (financial Consumer credit,
Commercial obligation, Share, Insurance policy, Work Consortium loan,
Banks Order, Earnest money, Unit certificate, Loan for poverty
Sanchaya patra, Mutual fund certificate) alleviation
Temporary overdraft, cash credit. program.
Demand Loan: Import Related- Payment
against document, Loan Against Imported
merchandise, Forced loan against imported
merchandise Loan against trust receipt. Export
Related- Packing credit, secured overdraft,
Export cash credit, Foreign bill purchase, Inland
bill purchased Overdraft against cash incentive,
Bridge loan.
Term Loan: Project Loan, House building loan,
Rural housing loan, Transport loan, Loan for
house renovation, Special credit program, and
Agriculture loan.
Private NCBs plus Small and Medium Enterprise Syndicate loan,
Commercial Credit, consumer loan, lease finance, Hire Transport loan
Banks Purchase, Overdraft against credit card. (commercial)
House building
loan (commercial)
Special Festival
Business loan, any
purpose loan,
Education loan,
Treatment loan.
Foreign SOD, TOD, LIM, CC, TR, FAF, Housing loan,
Commercial Personal loan.
Banks
Islami Bank Bai Mudaraba, Bai salam, Bai muajjal, Higher Mudaraba, Special
purchase sherkatul milk, house building pally biniyog,
finance. private vehicle
investment scheme.
Specialized NCBs plus Crop loan, Fisheries loan, Livestock
Banks loan, Irrigation and farming machinery loan,
agro based industrial loan, Micro credit.
Table # 5
It is found from the above table, that most of the products used in loans and advances
are designed to9 finance mainly the business sector. However personal financing
needs were neglected earlier.
5.4 Ancillary Business
Ancillary service is of great importance to a bank. Banks may even find that their
major source of profit is not in their traditional business of taking deposits and making
loans, but in the newer ancillary services. With this realization, Bangladeshi banks
offer a number of ancillary services. Banks earn fees or commissions by performing
ancillary services. Table # shows that modes of ancillary services of Nibs are confined
to transfer of money and agency services. Banks transfer money from one place to
another through MT< TT< MD< PO, Foreign MT< Home remittance scheme. Under
the agency services, banks offer a number of services such as collection of bills and
cheques, collection of utility services, sale of shares, prize bond sanchaya patra, and
cricket’s tickets, and payment of various government grants. Two more services
namely locker services and guarantee are also popularly offered by banks. PCBs offer
some extra ancillary services apart from those provided by NCBs. Of them credit
card, and travelers’ cheques are well accepted. Credit card is called plastic money,
which is offered by a name of private banks. It provides credit to variety of
commodities and services at the designed shops of the traders. Other service in the
area of merchant banking such as underwriting, issue management, portfolio
management are being adopted gradually by private commercial banks. After 1998,
PCBs have also introduced some products namely on line banking, advisory service,
ATM card, debit card etc.
Products Used in Ancillary Business

Banks Before 1998 After 1998
Nationalized Transfer of money- Pay order, Demand Ready Cash
Commercial Banks Draft, Telegraphic Transfer, Mail Transfer,
Foreign MT, Home remittance scheme;
Agency Service- Collection of b ills and
cheques, Utility Service, Sale of prize bond,
Sanchaya patra, Lottery tickets, Share,
Payment of various government grant/
allowances.
Private NCBS plus Travelers’ cheques, Underwriting, Online
Commercial banks Issue Management, Portfolio Management Banking,
Electronic
Fund
Transfer,
Advisory
Services,
Credit Card,
ATM Card,
Debit Card
Specialized Banks NCBS
Foreign NA
Commercial Banks
Islami Banks Transfer of money, Traveller cheque, Agency ATM card
service
Table # 6
6.0 Underlying Factors that Have Caused

Introduction of new Banking Products in
Bangladesh
Despite available existing banking products, there has been acceleration in the
introduction of new banking products in recent years in Bangladesh. Some driving
forces worked behind this acceleration. An important driving force is competition
among banks. At present 49 scheduled banks operate in Bangladesh. Moreover a
variety of financial institutions have emerged in the financial sector of Bangladesh to
provide board range of financial services. Hence, banks strive to introduce several
new products either to preserve existing market share or both. However, new products
were introduced mainly by targeting urban base client as competition among bank is
confined to the urban areas. PCBS and FCBs are in operation mainly in the urban
areas. Rural areas people are not therefore the beneficiaries of these bank’s new
products.
Another influence on innovations in banking products is deregulation. Bangladesh has

undertaken deregulation measures in a gradual manner. Here in Bangladesh
deregulation includes liberalization of interest rate, relaxation of constraints on banks’
portfolio management, introduction of new products in the money market- repo, to
create a new channel to adjust banks’ liquidity position, elimination of exchange
control etc. moreover to be effective, financial deregulation backed by updated laws
and prudential regulations. Deregulation and updated laws and prudential regulations
have enabled banks to compete more freely with each other and to broaden the range
of services that they offer to the customer.
Innovations have also been prompted by information technology (ICT). Banks in

Bangladesh are gradually introducing the latest information technology according to
their capacity. All banks have been using either local or foreign software in their
banking operation, for example NCCBL using Indian- Micro Banking Software for
their banking purpose. A good number of banks offer services of Automated Teller
Machine (ATM) and point of sale terminals. Other electronic banking services are
tele-banking, electronic fund transfer, credit card, debit card, merchant account
service to merchants, SWIFT are also in vogue in banks of Bangladesh. Introduction
of ICT in banks had two effects. Firstly, it has reduced the costs of financial
transaction and ensured delivery of better customer service. Secondly, it has spawned
growth of bank products. Customer sophistication is also a driving force for current
acceleration in the introduction of new banking products. Customers demand a more
professional service at the least possible cost and expect that banks would offer only
those products that can meet their specific requirements most appropriately.
Consequently, banks have attempted to introduce newer products that serve to replace
existing products at lower costs.
An increase the default loan of traditional banking products also influenced banks to
introduced new products. Sarker ( 1997, P>H) writes that incase of traditional
banking cash mode of lending, accountability on the part of borrowers as well as
lenders recourse on borrowers are minimum which encourage loan default attitude.
He suggest that bank should therefore , think of introducing new asset or commodity
based products like leasing, consumer product financing, merchant banking, etc. and
expect that these products would not only diversify asset products base but would
also help to reduce loan default attitude of the borrowers.
7.0 RELATIONSHIP MARKETING FOR BANK
Relationship banking is a process which has the aim of persuading customers to

become lifetime customers and to place all their banking business with one bank now
and in the future. Relationship banking enables to provide a cost effective, proactive
service to selected customers. As a whole, relationship marketing refers to a long
term, mutually beneficial and exclusive problem solving relation between customers
and banker.
7.1 Relationship Marketing
We have to develop relationship with our customers so that they feel they are our
family members. Customers should think that Banker cares about their well being. We
feel happy in their prosperity and we feel sorry in their distress.
8.0 MARKETING ASPECTS OF NCCBL
Bank belongs to service industry and its marketing strategy is to sell its products to its
customers. Creating customer value and satisfaction are the heart of modern
marketing thinking and practice. Marketing is the delivery of customer satisfaction at
a profit. The two- fold goal of marketing is to attract new customers by promising
superior value and to keep customers by delivery satisfaction.
8.1 Marketing System in a Bank
Communication
Information
Figure # 1
Bank Market/ Customer
A Collection of Sellers 8.3 Business A Collection of Buyers
Philosophy:
In order to be successful, we have to sell our services/ products at a profit and satisfy
customer.
 If we satisfy our customer but fail to make a profit, we will soon be out of
business.
 If we make profit without satisfy our customers, we will soon be out of
customers.
The secret of doing business lies on the one word service. Service means doing
something so valuable for the customers that he is glad to pay a price that allows us to
make a profit.
8.4 Marketing Strategy
For achieving balanced and sustainable growth, we must satisfy two groups:
 New Customers and

 Repeat Customers
Traditional marketing theory and practice have focused on attracting new customers
and making the service. Today, however, the emphasis is shifting. Our marketing
strategy should be all effort to retain current customers and build lasting customer
relationship. Thus, marketing is service oriented. The service is “A Bridge between
Product and Customer”.
8.5 Three C’s of Marketing in Bank
1. Customer Focus
2. Co- operation
3. Continuous Improvement
Customer Focus: It means,
 Know Your Customer
 Know Your Product
It also means “the design, creation and delivery of product, service based on meeting
customer needs and exceeding their expectation”.
Co-operation: It implies ‘share information and share resources”.
Continuous Improvement:
This is part of Marketing Research. We take feedback from the market, we collect
note of the customer complain and try to improve our product and service on a
continuous basis. Why? To remain and compete in the market.
Satisfied Customer
In a bank, all officers and executive are Marketing Officers. The existing customers
should get proper service, which will turn bring new customers. One satisfied
customers will do advertisement on our behalf and automatically bring chain of new
customers. On the other hand, dissatisfied customer (if any) is enough to ruin our
image and goodwill. The costs of attracting new customers are rising. In fact, it cost
ten times as much to attract a new customer as it does to keep a current customer
satisfied. We should also realize that loosing a customer means more than loosing an
account, it means loosing the entire stream of service that the customer make over the
lifetime of patronage. So in our behavior and dealings with one customer should never
be hurt. We have to provide personalized service.
9.0 ASSET MARKETING AND INFORMATION
For achieving balanced and sustainable growth for a bank, their market should be both
liability and asset.
Bank means:
Deposit Bank Lending

Figure # 2
Bank accept deposits from the public fro the purpose of lending. We always go fro
deposit hunting. No doubt deposit is life-blood fro a bank. But if we cannot deploy
this fund, then bank cannot earn profit. So we must also do marketing fro bringing
good borrowers. If asset and liability can be matched then only we can expect
sustainable growth. In this line, we can also try to bring more import – export
business, guarantee business and other miscellaneous service for the growth of the
bank. If we can increase non funded business, then our profitability will go high.
Moreover, we can markets new products for our existing and would be new
customers. Lending is the main asset of the bank. Borrowers are also our important
and valued customers. So, if we want to be a good banker or a credit officer, we must
know the market and product. We must have the information about the company and
also the industry. Fro example, we want to finance new cement factory. Then we must
have the information about the cement industry. About the total supply and demand.
We should take information about from the competitors, from the bankers, from the
market and finally from CIB of Bangladesh bank. If we are through in analyzing
Balance Sheet, then we can find vital information for taking decisions. If we can
calculate Credit Risk Grading, then also it will give us financial information whether
to take or reject any proposal. Thus information and only information can take us
close to our customer by which we can render better services.
10.0 MARKETING OF BANK PRODUCTS
There is a maximum that for doing better marketing: known your customer and
known your products. Thus a banker should known all about its product in details.
The lists of products are given below:
10.1 Deposit Products

 Current Deposit Account ( CD A/C)
 Saving Bank Deposit ( STD A/C)
 Fixed Deposit Receipt ( FDR)
 Contributory Savings Scheme/ Monthly Saving Scheme / DPS
 Monthly Benefit Deposit Scheme / Monthly Income Scheme
 Special Deposit Scheme
 Education Savings Scheme
 Insured Fixed Deposit Scheme
 Money Scheme
 Multi Currency Account
 Foreign Currency Deposit A/C
 NTTA ( non resident investor’s Taka account)
 Haji Deposit Scheme etc.
10.2 Loan Products
Secured Overdraft ( SOD)

Cash Credit ( Hypothecation)
Cash Credit ( Pledge)
Loan( General)
House Building Loan
Consumer Credit Loan
Lease Finance
Hire Purchase
Small and Medium Enterprises Credit Scheme
Loan against Shares and Securities
Working Capital Financing
Import Financing
Export Financing
Project Finance
10.3 Others Products
 Master Card
 VISA Card
 ATM
 On Line Banking
 SWIFT
 LC Delivery
 Locker
 Utility Services etc.
10.4 Product Development and Customer Complain
To provide efficient and better service, we should take opinion from the existing
customers. We can keep a complain box, visible in the branches/ head offices, where
customer will go give their suggestions. These information, once again will help the
management to rectify and also improve the products or services.
11.0 CONCEPT OF SELLING WITH INTEGRITY
We would like to add one new concept ‘selling with integrity” as a marketing tool.
This concept care about the persons. Anyone responsible for the sales of any product
or service where the long term relationship with the customers are important. The
main theme is ‘Care about your Customer” give solutions to buyer’s problems. This
can be shown by the following table:
Your Customer
Agenda Agenda
Loose your agenda Give priority to customer’s agenda
 Then your marketing will be successful and this is selling with integrity
 If customer wins then it will ultimately bring you a success
 Initially loose / win situation finally it becomes win/ win for both.
A customer is the most important visitor on our premises. He is not dependent on us.
We are dependent on him. He is not an interruption on our work. He is purpose of it.
He/ she are not outsider on our business. He is doing us favor by giving us an
opportunity to do so.
12.0 PRODUCTS LEVEL OF NCCBL
Core Product:
 Financial solution.
Basic Product:
 Deposit
 Loans & Advances
Expected Product:
 ATM
 Fast cash Online Service in all Branches of NCCBL
Augment Product:
 Money Gram
 Project Loan or Festival Business Loan

Potential Product:
Online Service in all Branches of NCCBl
Figure: 3: 4 P’s
12.2 Products and Services Offered By NCCBL:
National Credit & Commerce Bank Limited has a variety of products offered for the
retail customers as well as for corporate clients. The different products and services
for retail and corporate clients are given below:
Products for retail clients:

The existing products that are offered by NCCBL are:
 Instant Earning Deposit
 Monthly Income Plan.
 Monthly Deposit Plan.
 Fixed Deposit (FDR).
Services for retail Clients:
Services include the following:
 Sale of Bangladesh Sanchaya Patra, ICB Certificate etc.
 Encashment of different Sanchaya Patra, ICB Certificate etc.
Products for corporate clients:
NCCBL offered products for its corporate clients are:

o Payment against Document (PAD).
o Loan against Fixed Deposit Receipt (FDR).
o Acceptance against ULC.
o Local Bill Purchase Documentary (LBPD).
o Foreign Bill Purchase Documentary (FBPD).
o Sight Letter of Credit (SLC).
o Usance Letter of Credit (ULC).
o Letter of Guarantee (LG).
o Secured Overdraft (SOD).
o Demand Loan.
o Time Loan.
o Term Loan.
o Others.
12.3 Price Offered by NCCBL:

Price is the main feature of a service-oriented organization like NCCBL. But NCCBL
is offering very non-competitively priced products compared to its customers.
Types of Deposits Interest Rate

(% per
annum)
Savings Deposit (up to tk.10 lac) 7.25
Savings Deposit (above tk. 10 lac) 7.50
Short Term Deposit (HPA) 6.00
FDR for 3 months and above but less than 6 months (up to tk. 10 lac) 8.00
FDR for 3 months and above but less than 6 months (above tk. 10 12.00
lac)
FDR for 6 months and above but less than 1 year 12.25
(up to tk. 10 lac)
FDR for 1 year and above 12.50
Table: Interest Rate of different types of Deposits (Source: Finance & Accounts Division, NCCBL.)
Category Interest
Rate (% per
annum)
1. Agriculture
a. Loan to primary products 11.50
b. Loan to agricultural products 14.50
2. Large & Medium Scale Industry (Term Loan)
a. Up to 5 years 14.00
b. Above 5 years 16.00
3. Working Capital
a. Jute 14.50
b. Other than jute 16.00
c. Jute trading 15.50
4. Export Credit
a. Jute & jute goods 10.50
b. Other export 10.50
5. Commercial Lending 14.50
6. Special Cottage Program 13.00
7. Housing loan 14.00
8. Consumer Finance 16.00
9. Credit Card 2.00
10. Against FDR/ Fo 16.00
Table: 7 Rates of Interest on Loans.
12.4 Place:
National Credit & Commerce Bank Limited has 48 branches are located in the city
and sub urban area. Both of the city and sub urban areas people get opportunity to
deposit and borrow the money for their necessity.
Here when they select operating area they mainly consider the business aspect of this
area, then they consider the income level of this area’s people.
12.5 Promotion:
NCCBL's promotional aspects are under the supervision of the Brand Management
Department. Headed by a Senior Vice President, this department looks after the
advertisements of NCCBL's product, customer's feedback and increasing the brand
image of NCCBL. NCCBL has entered into a contract with an advertising agency that
is looking after the advertising activities of NCCBL. NCCBL's logo has also been
changed into a more attractive one, as explained earlier. NCCBL desperately needs a
strong Brand Image to survive the competitive bank environment. Previously due to
lack of attention on the marketing and promotional aspects, NCCBL's brand image
wasn't as strong as its competitors and there were no advertisements in the
newspapers expect for the recruitment's. But with the introduction of a new
department "Brand Management", NCCBL is hoping to boost up its Brand Image.
13.0 FIELD OF OPERATION
NCCBL, being one of the best financial intermediaries in the country, blended its
operations in investment banking with high priority of credit facility. The blending has
been done with the objective of diversifying the operation for catering to the needs of
the customer of the different strata of the society from one viewpoint and for having
sustainable growth in profitability and business with the least possible risk for
shareholder. The bank’s operations were diversified into the following areas of
activities as a dynamic financial intermediary.
 Conventional banking operation

 Lease Finance Operation
 Merchant Banking
In order to carry out the above operations NCCBL has set up the following division
and departments and units in its head office and somehow main branch office:
 Credit Operation & Management Unit , this unit combined different
department and subunit:
a. corporate / Relation Operation Department
b. Credit Risk Department
c. Credit Administration Department
d. Credit Monitoring and Recovery Department
e. Export finance Division
f. Small & medium enterprise ( SME ) Credit Cell
g. Structured Financing Unit
 International Division
 Treasury
 Leasing Unit
 Card Division
 Retail Credit Division
 Corporate Affairs Division
 Merchant Banking & Investment Division
For facilitating operations by the above mentioned divisions the bank has established
the following divisions to provide support and internal services:
 Human resource Division

 Information Technology Division
 Public Relations Division
 Financial Administration Division
 General Services Division
 Marketing Division
 NCCBL Training Institute
 Branches Control Division
For ensuring internal and statutory compliance there are following three cells namely,
 Board Audit Cell

 Audit and Inspection Division
 Central Compliance Department
Besides, there is a Board Secretariat to look after the company matters and to for
arrange for Board / executive Meetings and record the proceeding of the Board /EC.
Eight Components of Integrated Product and Service management in case of Bank:
1. Product elements: All the products- deposit or credit are designed to capture
the entire market segment. There is wide variety of options for the customer to
choose any service according their need and wants. Service include A/c
opening, loan proposal processing, transfer of money to home and abroad etc.
2. Place, cyberspace & time: 31 branches of NCCBL is situated in a location
which is convenient to the customer. Online services are activated for
customer easier bank transaction.
3. Process: Although banking is an efficient profession, creating & delivering
product elements to customers continuously designed in order to give
customers full satisfaction keeping in mind the technological advancement and
needs and wants of the customer.
4. Productivity & quality: To ensure productivity (to transform customer’s

request into desired outcome) and quality (the degree to which a service fully
satisfies the customer), NCCBL always tries to give the highest return to its
depositors and lowest interest rate of the lenders.
5. People: For running the bank product, Bank depends on direct personal
interactions between customer and Bank’s employees. In order to make the
encounter successful NCCBL has developed its own training institute, through
which it is continuously recruiting, training and motivating its employees.
6. Promotional activities of new an existing product launched by the Bank
conducted through TV, Newspapers, Magazines, brochures etc.
7. Product development: National credit & commerce Bank Limited always tries
to launch new product for banking field that create extreme facility for
transaction with newest technology.
8. Price & other user cost: there are some set rules of Bangladesh Bank regarding
deposit rate, trade margin an credit terms etc. every month top- level
Management within the delegation power of the Banks sits together to keep
this cost at competitive rate I incurred by the customer to obtain benefits from
the Bank.
Bank creates value by offering the types of from its bunch of products and delivering
them in a pleasing and convenient fashion at an acceptable price. In return, customer
gives the bank more deposit in the primary form and later on by taking huge amount
of loan and telling others to get service from the NCCBL.
14.0 GENERAL BANKING OF NATIONAL CREDIT AND COMMERCE

BANK LIMITED
NCCBL divides the whole general banking department in to the following sections:
 The Account Opening

 Banks own Scheme Sections
 The FDR Section
 The Cheques Clearing Section
 The Cash Counter
 The Computer Section
 The accounts Section
 Local Remittance Department
 Foreign Exchange Department
14.1 Account Opening
Major liabilities of a bank are its depositors and other accounts. Bank mainly operates
with this money. The banking activities of an individual start with the opening of an
account. NCCBL primarily gives to open he following accounts:
 Current Account
 Saving Account
 Short Term Deposit Account
 Fixed Account
There are some rules and procedures provide by the bank to open and operate
accounts. Maintaining those procedures the following parties can open and operate
any accounts:
 Individual / Joint account
 Partnership Firm
 Proprietorship Concern
 Limited Company
 Club / Society
 Corporate society
 Trustee Board
 Non- Gov. College/ College/ Madrasha/ Muktab
 Minor’s Account
DOCUMENTS REQUIRED TO OPEN AN ACCOUNT

 In case of Individual Client:
1) Photocopy of Latest Trade License.

2) Photocopy of Utility Bill – Gas, Electricity, WASA or Land Phone Bill.
3) Photocopy of Passport/National Certificate/Voter ID Card.
4) Two copies of Passport Size Photograph of the Applicant signed by the
applicant duly attested by the introducer.
5) Nominee’s Passport Size Photograph signed by the nominee and duly attested
by the account holder – 1 copy.
6) TIN Certificate.
7) Transaction Profile duly filled and signed by the account holder.
 In case of Limited Company:
1) Certified true copy of the Memorandum and Articles of Association of the
company.
2) Certificate of Incorporation of the Company for inspection and return along
with duly certified Photocopy for Bank’s record.
3) Certificate from the Registrar of the Joint Stock Companies that the
company is entitled to commence the business (in case of Public Limited
Company, for inspection and return) along with a duly certified photocopy for
Bank’s record.
4) Latest copy of Balance Sheet.
5) Extract of Resolution of the Board/General Meeting of the Company for

opening the account and authorization for its operation duly certified by the
Chairman/Managing Director of the Company.
6) List of Directors with Addresses.
14.2 CHEQUE
A cheque is a bill of exchange drawn on a specified banker and not expressed to be

payable otherwise than on demand. In other words, a cheque is an unconditional order
of the account holder in writing bearing a date, to the banker maintaining his account
to pay on demand to a named person or to his order or to the bearer a certain specified
sum of money expressed in both figure and words.
The cheque currency is not legal tender money but can be converted into one at any
time. Cheques are drawn against the funds in the hands of the banker. They act as the
currency notes in these days of economic civilization and are most vital for the
organization like Bank.
 The Salient Features of a Cheque:
1) A cheque must necessarily be an instrument in writing not oral.

2) A cheque is an order to pay and it is not a request. This order must be
unconditional.
3) A cheque is always drawn on a particular banker where the name and address of
the banker is clearly printed on the cheque leaf itself.
4) In order that a cheque may be a valid one, it must be made payable to the order
of a certain specified person or to his agent or the bearer thereof.
5) A cheque is usually drawn for a definite sum of money.
6) A cheque is payable only on demand.
7) A cheque must be signed by the drawer in whose name the account is kept or his
authorized agent.
Cheque book shall be issued to a dormant account holder only when the account
holder calls on personally and the authorized officer of the branch is fully
satisfied about the bonafide customer. Besides, the dormant account holder is
required to be identified by another account holder known to the bank.
14. 3 DEPOSIT ACCOUNTS
Deposit accounts are one of the important sources of a bank’s funds. The followings
are the different types of Deposit Accounts of NCC Bank Limited.
 Types of Deposit
Bank deposits are classified into the following categories:
 Demand Deposit
1) Current Deposit
2) A small portion of Saving Deposit
Deposits
1999 2000 2001 2002 2003
20000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
1999 2000 2001 2002 2003
Chart # 3 recent year deposits of NCCBL
 Term/Time Deposit
1) Fixed Deposits
2) Short Term Deposits
3) Recurring Deposits
4) Large Portion of Saving Deposits.
Main Features of Deposit
NCC Bank is a Progressive Commercial Bank in Private Sector:
 It creates new opportunities for its clients.
 It gives customized services and maintains harmonious banker-client
relationship.
 It contributes towards formation of national capital, growth of savings
& investment in trade, commerce & industrial sectors.
NCCB offers following attractive rates of profit to its Depositors on Term & Savings
Deposits: Term deposits
Nature of Deposits Band of Rate of
Interest
Fixed Deposit 1 month 8.00% - 8.50%
Fixed Deposit / Bearer 12.00.00%
Certificates for 3 months
Fixed Deposit / Bearer 12.25 %
Certificates for 6 months
Fixed Deposit / Bearer 12.50 %
Saving and short term Deposits:

Savings deposit 8.50%
Short term Deposit 6.00%
In addition to above, higher rate of profit is offered on bulk deposits. With a

view to ensuring risk free and profitable investment of limited income of
majority of our people & thereby providing maximum benefits, NCCB has
launched following Savings Schemes:
 Current Deposit Account
The salient features of Current Deposit Accounts are…
 The bank undertakes the obligation of paying all cheques drawn against it
by the customer till it has adequate funds of the customer with it.
 Big customers such as businessman, joint stock companies, public
authorities etc generally open this account.
 Banks usually do not pay interests on current deposits.
 Bank gives overdraft facilities also in some cases.
 Credit facilities are granted by bank through current account.
 Minimum balance required to be maintained.
 Savings Deposit Account
Features of Savings Deposit Accounts are…
 A depositor may deposit money as often as he wishes.
 A minimum balance is required to be maintained at all time.
 The maximum interest bearing amount allowed on Savings Account is Tk.
500,000/=
 Interest is payable on collected funds.
 In the event of a cheque returned for want of funds a penalty charge of Tk.
50/= for each presentation will be made.
 A depositor can not withdraw a sum in cash smaller than Tk. 500/=.
 Total withdrawal without notice is allowed twice in a week up to 25% of

the balance in the account subject to maximum of Tk. 20,000/=.
 Withdrawal beyond the maximum limit will require 7 (seven) days notice.
Failure to give notice will entail forfeiture of interest for month in which
withdrawal occurs.
 Cheque book is issued to the account holder of Savings Account.
 Cheques and Dividend warrants are allowed for collection.
 Appointment of nominee is compulsory.
14.3.1 Fixed Deposit Receipt
These deposits are made with the bank for a fixed period specified in advance. High
rate of interest is given on this type of deposit. Fixed deposits generally constitute
more than half of the total deposits with the bank.
 Features of a Fixed Deposit Receipt

1) Name of issuing bank and branch
2) Fixed Deposit Receipt number
3) Issue date and maturity date
4) Period fixed for the deposit.
 Opening operation of a Fixed Deposit Account
 The depositor has to fill an application form wherein he mentions the amount
of deposit, the period for such deposit is to be made and the name to which the
fixed deposit receipt is to be issued.
 The banker also takes the specimen signatures of the depositor in pre-printed
Signature Card.
 The rate of interest on the fixed deposit also fixed in advance.
 After observing all the formalities, a Fixed Deposit Receipt (FDR) is then
issued to the customer acknowledging receipt of the sum of money mentioned
therein.
 Account may be opened in single or joint name.
 In case of joint account, mandate must be taken regarding

operation/withdrawal of deposited money.
 Nominee must be declared in prescribed form.
 Interest on overdue interest is allowed according to bank’s practice.

 Premature encashment is allowed, but interest is paid as per bank’s rule.
 Issuance of duplicate FDR

Duplicate FDR may be issued in case original FDR is lost after fulfillment of the
major formalities:
 To obtain written application from the
depositor and verifying genuineness of the applicant.
 To be ensured whether such FDR was issued
and payment is not made against the said FDR.
 To obtain Indemnity Bond properly after
affixing proper adhesive stamp and getting signed by two witnesses.
 To issue duplicate FDR mentioning number
and date of the original 14.4.2 Special Fixed Deposit Scheme
 Any amount of Tk. 1, 00,000/- or its multiple may be deposited under

this scheme.
 Duration of the Scheme is 3(three) years.
 Monthly interest will be given to the depositor against the deposited
amount according to the following schedule.
Amount Deposit (Tk.) Monthly profit
(Tk.)
50,000/- 500/-
1,00,000/- 1,000/-
2,00,000/- 2,000/-
3,00,000/- 3,000/-
4,00,000/- 4,000/-
5,00,000/- 5,000/-
6,00,000/- 6,000/-
7,00,000/- 7,000/-
8,00,000/- 8,000/-
9,00,000/- 9,000/-
10,00,000/- 10,000/-
14.5 Introduction of Two new Deposit products from January 04, 2006, those are:
The names of the Deposit Products are:
Premium Term Deposit

Instant Earning Deposit
15.0 THE CASH COUNTER
We know that a bank is the Dealer of Money; it Receives money and pay money.
Cash counter is the heart of any commercial bank’s branch office as it receives and
pays cash every moment at its working time. Following are some takes done by the
cash counter of NCCBL:
 Cash Received
 Cash Payment
 Receive Utility Bills of Wasa, T&T, AKTEL, etc.
 Working as agent at the time of issuing IPO of different companies.
 Fund management by maintain sufficient amount of Cash each
date.
 Payment of ATM cards.
The Account Section
Accounts section of a bank mainly deals with the internal matters rather deals with the
customers. There is also customer oriented work it has done to its value able
customer. Like:
It helps the customer to find out there money those are going to the wrong account,
name, etc because of their personnel mistakes.
16.0 LOCAL REMITTANCE DEPARTMENT
Remittance is one of the most significant part of the general banking. NCCBL
receives and transfers various types of bills trough the remittance within Bangladesh.
The bank charges commission on the basis of bills amount. At present this department
helps the operation of foreign remittance cell smoothly.
The following types of the remittances are providing the NCCBL:
 Pay Order
 Demand Draft
 Telegraphic Transfer
 Mail Transfer (outside the City)
 Payment Order (locally)
 Pay Slip
 Security Deposit Receipt.
16.1 Demand Draft (D.D)
A Demand Draft is an order to pay money drawn by one office of the Bank upon other
to the same Bank for a sum of money payable to order on demand.
 Basic Features of DD
1) Payable on demand,
2) Drawn by one office/branch of a bank upon another office/branch of the same

bank,
3) Payment is to be made to the person whose name is mentioned therein or
according to his order and
4) Satisfy the conditions of a negotiable instrument.
 Issuance of Demand Draft
Issuance of Demand Draft requires:
 Application in prescribed form,
 Ensure cash deposit or Cheque from the customer (with commission and
telegram charges),
 Obtain DD-Block and prepare DD with clear hand writing,
 Entry into DD Issuing Register (branch-wise) and insert the serial number
beside printed number,
 Write printed and serial number of DD on the application,
 Write the amount on DD with Protect graph
 Apply full test,
 Check and sign by two authorized officials,
 Hand over to customer after due acknowledgement,
 Issue Cost Memo (if customer desires)
 Sent telegram/telex (if applicable)
 Prepare Credit Advice for Paying Branch (drawee) and
 Check and sign by two authorized officials.
 Payment of Demand Draft

 Check the DD and verify signatures and ensure that the DD is not reported
lost by the purchaser,
 Verification of Test, if agreed ok, otherwise ask for repetition,
 Posting in B/P: DD payable or DD paid W/A,
 Ensure proper identification of payee, if payment make over the counter
and advice not reached,
 Cancellation of DD
 If it is presented through a bank, proper endorsement should be ensured.
NCC BANK LIMITED, AGRABAD BRANCH ALSO PROVIDE

“OVERDRAFT FACILITY AGAINST DEPOSIT PENSION SCHEME (DPS)”:
 Product Details:
The overdraft facility may be allowed to any DPS holder maintaining a current
account with this branch.
 Eligibility Criteria:
 The account (DPS) will have to be at least 02 (two) years old.
 The minimum ticket size for the advance will be Tk. 20,000.00
 Maximum Loan Amount:
The maximum loan amount will be 90% of the encashment value of the DPS at the
time of application received from the client. Other terms and condition remain the
same as the bank’s Secured Overdraft (Financial Obligation) facility.
18.0 THE LOANS AND ADVANCE DEPARTMENT
The prosperity of a country depends upon its economic activities. Like any other
sphere of modern Socio-Economic activities, banking is a powerful medium of
bringing about socio-economic changes of developing country. Agriculture,
commerce and industry provide the bulk of a country’s wealth. Without adequate
banking facility these three cannot flourish. For a rapid economic growth a fully
developed banking system can provide the necessary boost. The whole economy of a
country is linked up with its banking system. The functions of the bank are now wide
and diverse. Of all the functions of a modern bank, lending is by far the most
important. They provide both long term and short term credits. The customers come
from all walks of life, from a small business to a multi-national corporation having its
business activities all around the world. The banks have to satisfy the requirements of
different customers belonging to different social groups. The banking business has,
therefore, become complex and requires specialized skills. They function as catalytic
agent for bringing about economic, industrial and agricultural growth and prosperity
of the country. The banking can, therefore, be conceived as a “a sector of economy on
the one hand and as a lubricant for the whole economy on the other”. As a result
different types of banks have come into existence to suit specific requirements. A
prudent banker should always try to make an appropriate balance between the risk and
return involved in the loan portfolio management. The lending banker has to take into
account various considerations which relate to bank itself, the borrower, the proposal,
the socio-economic factors etc. National Credit and Commerce Bank Limited offers
its valuable customers both consumer credit scheme and financing for small, medium
and large scale business and industries that fulfill requirements of the bank and have
return to the investment as well as satisfy the client. The bank’s loans and advances
grew steadily during 2002; the growth rate was 40.79 % from previous year. The ratio
of non-performing loans to total loans declined during the year and stood 1.50% a sat
December 2003 compared to 1.94% of previous year.
Advances
1999 2000 2001 2002 2003
14000
12000
10000
8000
6000
4000
2000
0
1999 2000 2001 2002 2003
Chart # 4
NCCBL have offered the Loans and Advances Scheme as the following form:
1. General Loan Scheme

2. Lease Finance
3. Project Loan
4. House Building and Repairing Loan
5. Small and Medium Entrepreneur
6. Consumer finance Scheme
7. Personal Loan.
18.1 General Loan Scheme

Depending on the various nature of financing, all the lending activities have been
brought under the following general loan:
 Short term Loan
 Medium Term Loan
 Long Term Loan
The loans are followed to individual/ firm/ industries for specific purpose but for a
definite period and generally repayable by installments fall under this head. This type
of lending are mainly allowed accommodating financing under the categories:
Large & Medium Scale Industry and Small & Cottage Industry. (Very often term
financing for agriculture, poultry and others).
Lease Finance
Lease financing is one of the most convenient long term source of acquiring capital,
machinery and equipment. It is a very popular scheme whereby a client is given the
opportunity to have an exclusive right to use an asset, usually for an agreed period of
time, against payment of rent. Of late, the lease finance has become very popular in
almost all the countries of the world. The lessee is obliged to make lease is to use an
expiration of the lease agreement, which corresponds to the useful life of the asset. In
a capital scarce economy like ours, lease financing is suitable for firms to acquire
Capital machinery, equipments, Medical Instruments and Automobiles etc. and
thereby employ their own resources more advantageously in some other investments.
Lease financing also helps a firm to reap economic benefit through tax saving and by
reducing the risk of the equipments becoming obstacle due to he technological
advancement.
NCCBL has introduced the lease finance with the following objectives:
 To assist the genuine and capable entrepreneurs for acquiring capital
machinery and equipment to undertake enterprise without equity.
 To encourage the new and educated young entrepreneurs to undertake
productive venture and demonstrate their creativity and thereby participate in
the national development.
 To participate in the industrial development of the country.
Lease items / Equipment

NCCBL offers lease finance for acquiring the use of capital machinery, equipment,
medical instrument, etc. the customer are entitled to decide the specification, price,
and model of the lease item. Bank will purchase the item in accordance with the
speciation given by the customer or clients. However, the suppliers of the item must
ensure after sales service and warranties. The price should be competitive and
acceptable to the Bank.
Eligibility for Availing Lease Finance:

All genuine entrepreneurs having adequate experiences and expertise are eligible to
apply for lease finance under the scheme. The amount of lease finance will not
generally exceed TK 1.00 core, but in exceptionally good cases, the limit can
reasonably be exceeded on condition that the bank will depute an officer for close and
intensive of the project. In other cases of lease finance for amount below TK. 1.00
cores. An officer of the bank will supervise a number of projects at a time according
to convenience.
The entrepreneur will be required to provide the following securities:

1. The lease items will remain in the name of the bank i. e , bank will be the sole
owner of the leased items.
2. Collateral securities having liquidation value covering at least 100 % of the
amount of finance.
3. Deposit of listed shares, National Savings Certificate, ICB Unit Certificates,
Assignments of Life Insurance Polices, Bank Guarantee, Insurance Gurantee
etc, will be acceptable as collateral securities.
4. In case of existing industrial units requiring BMRE, charge may be created on
the existing Fixed Assets as collateral securities for the finance. In case of
existing Automobile enterprises, creation of charge on the existing vehicles
will also be acceptable as collateral securities.
5. i) In case of default in payment of lease rental for consecutive 2 ( two month) ,
the bank will take over the lease item giving any prior notice. Ii) In case of
taking over the lease items by the bank before maturity. The lessee will be
liable for the loss, if any, caused to the bank of such premature taking over. Iii)
the bank will exercise close and intensive supervision of such projects. An
officer of the bank will be engaged separately for supervision of such projects
to ensure proper utilization of the lease item and timely repayment of the
rentals.
Supervision and follow up

Bank will engage supervising officers to exercise close and intensive supervision of
the projects to ensure satisfactory performance. The assumptions which will be made
at the time of appraisal in respect of safety, performance, end use and repayments
should be satisfied through periodical review of the lessee’s account and financial
statements, bank will make frequent on the spot inspection of the lessee’s operation.
Transport leasing
Transport is one of the most widely traded lease items in the developed as well as
developing countries of the world. The reasons behind success of transport leasing in
many countries could by attributed to tax benefit, efficiency in found management and
above all to the fact that user could exclusively use the leased transport by paying
reasonable rental.
Silent Feature of Lease Financing
 Lease finance is offered for acquiring the use of capital machinery,
equipments, medical instruments and automobile.
 Financial lease is long term in nature and is non cancelable
 The customer will be required to make a deposit equivalent to 3 ( three)
months lease rental to the bank on the date of signing of the lease agreement
which shall be refined to the client at the expiry of the lease term.
 Bank will purchase the equipment after confirmation of the acceptance of the
equipment by the client.
 On execution of lease, the client and the bank shall enter in to an amendment
lease agreement reflecting the actual acquisition cost.
 The customer will pay service charge or project examination fee @ 0. 15% on
the sanction amount subject to a minimum Tk. 3000 and maximum Tk. 1000
in case of acquisition of machinery and equipments for projects. In case of
automobile, a service charge of Tk. 500 is payable when the acquisition cost is
Tk. 10.00 lac and above.
 The lessee will pay monthly rental in advance starting from the date of
execution till the end of lease term. Insurance charges are payable by the
lessee at actual.
 A risk fund is payable to the bank @ 1% of the acquisition cost in case of
capital machineries or equipments and @2% in case of automobiles.
 The type of securities acceptance to the bank will include: Immovable

Properties, Marketable securities such as FDR, PSP, BSP, etc., Bank
guarantee, insurance guarantee and personal guarantee etc.
18.2 Form of Loans & Advance
The making of loans and advances has always been prominent and most profitable
function of a bank. Sanctioning advances to customers and others out of the funds at
its disposal is one of the principle services of modern bank. Advances by NCCBL are
made in different form, such as, loans, overdrafts, cash credit, and bill purchased and
discounting.
18.2.0 Loans
Loans are allowed for a definite purpose and for a predetermined period to those
parties who have either fixed source of income or who desire to pay it in lump sum.
When an advance is made in a lump sum reliable either in fixed monthly installments
or in lump sum and no subsequent debit is ordinarily allowed except by way of
interest, incidental charges, etc., it is called a loan. Loans are, thus, allowed for
definite purpose and for a predetermined period to those parties who have either fixed
source of income or who desire to pay it in lump sum. The whole amount of loan is
debited to the customer’s name on a separate loan account to be opened in the ledger
and, is paid to the borrower either in cash or by way of credit to his account. Interest
is charged on the entire amount of debit balance, usually with quarterly rests, unless
there is an arrangement to the contrary. After creation of loan, there will be only
repayment by borrower. A loan once repaid in full or in part, cannot be drawn again
by the borrower. If the borrower desires further accommodation, it will be treated as
separate transaction subject to separate terms and conditions. Thus, a borrower is
required to negotiate every time he is taking a new loan or renewing an existing loan.
The characteristic of loans are as follows:
 May be short term or long term

 Sanctioned for a fixed period of time
 May be a demand loan repayment on demand
 Entire sum is debited to loan account of party and credit in his current or
savings account.
 Where disburse in installments, amounts of each installment is released as
above.
 No check book is issued
 No subsequent debit expecting for charging interest or incidental charge.
 Amount repayable either in lump sum or in installments
 Interest is charged on debit balance at quarterly rest
 Loan once repaid is full or in part can be drawn by borrower unless fresh loan
is sanctioned.
18.2.1 Overdrafts
Overdraft is generally allowed a current account operate upon by cheques. The
customer may be allowed certain limit up to which we can overdraw within a
stipulated period of time. In an account withdrawals and deposits can be made any
number of times within the limit and prescribed period. Interest is calculated and
charged only on the actual debit balances on daily product basis or may be decided by
the competent authority.
1. TOD (Temporary overdraft)

2. COD (Clean overdraft)
3. SOD (Secured overdraft)
TOD (Temporary overdraft): TOD is allowed to honor an important cheque of a

valued customer without any prior arrangement and it is allowed a very short period.
COD (Clean overdraft) Sometimes overdrafts allowed with no other security except
the personal guarantee of borrowers.
SOD (Secured overdraft) When the overdrafts are allowed against security those are
called secured overdrafts. Overdraft’s are generally granted to contractors and
supplies for carrying an construction works and supply orders also expansion of their
business. SOD is generally allowed against securities of fixed and term deposits
shares/debentures, PSP, insurance policy, real estate etc; depending on nature purpose
of advance.
The customer may be sanctioned a certain limit upon which he can overdrew his
current account within a stipulated time. The principle characteristics are:
 Customers having currents accounts are accommodate by overdraft facilities
against facilities.
 Permission is given to overdraw current account up to sanctioned limit.
 It is continuous revolving and credit the borrower may operate any no, of
tomes within sanctioned limit up to validity periods of the limit.
 Interest is charged on debit balance of daily product
 A short term credit arrangement and renewable
18.2.2 Cash Credit
Cash credit is a favorite mode of borrowings by traders, industrialist, and others for
meeting their working capital requirement because it is an elastic form of borrowing.
Elastic refers the limit fluctuate according to the needs of the business. Characteristics
of cash credit:
 Accommodation is allowed against primary security of goods
 Generally avails by traders & industrialist as working capital
 It is operational and separate account
 Being a revolving credit, can be operated upon a number of times within
sanctioned limit & drawing power.
 Interest is charged on debit balance at quarterly rest
 A short term credit valid for six months to one year, renewable.
Cash credit (hypo): Cash credit allowed against hypo of goods is known as Cash
credit (hypo) limit. In case of hypothecation, the borrower retains the ownership
possession of goods on which charge of the leading bank is created. Holder says,
legal transaction, where by goods may be made available as security for a debit
without transferring either property or the possession of the render
Cash Credit (Pledge): The borrower pledges his goods to the banker as security
against the credit facility; pledge has been defined as ‘a bailment of goods as security
for payment of a debt or performance of a promise’. The ownership of the pledged
goods remains with the pledge. Banks retains the effective control of the pledged
goods. Pledged goods may be stored in a godown of the borrower but under lock and
key of the bank. Bank’s guards are posted round the clock to protect the godown.
Bank makes delivery of the pledge goods to the party against payment.
Following points should be taken into consideration when allowing cash credit
(pledge) limit:
 The quantity of good is ascertained.
 The goods are readily saleable and have a constant and effective demand in the
market.
 The quality of the goods is ensured that is storage will not deteriorate the
product quality.
 The borrower has an absolute title to the goods.
 The prices of goods should be steady and are not subject to violent changes.
 The valuation of the goods should be made very carefully. Exile
price/purchase price/market price /whole sale price “which ever is lower”- is
the general principal for assessing the valuation of the goods.
 The goods should be stored in the presence of a responsible bank official.
 The goods are insured against all risk, such as fire, theft, R.S.D. etc. and the
insurance policy bears “Bank Mortgage Clause”.
 The stock report is obtained duly signed by the borrower.
 Stock must be inspected regularly by the branch-in-charge.
 Stock cards indicating the quantity of stocks, their value and rate is placed in
the godown.
 The locks of the godown are sealed and keys are deposited in the branch.
18.2.3 Discounting/ purchasing bill
Purchasing and discounting of bills of exchange is another way of employing the bank
funds. Such bill of exchange arises out of commercial transaction both in inland trade
and foreign trade. Bill of exchange is classified into demand bill and usance bills.
Where a bill is payable at sight or on demand or on presentation it is called demand
bill. The feature of Purchasing and discounting of bills are:
 Buying or transferee of bill by endorsements and delivery for value paid is
discounting of bill.
18.3.0 Procedures of sanctioning credit:
First, the bank will obtain a loan application from the customer on bank’s prescribed
form. The form must be signed by the proprietor/partners/directors (as the case may
be). Signature of the loan application must be verified for conformity with account
opening form. It is to be ensured that all the columns of application form are properly
filled in particulars and information furnished is completed and correct. All required
documents/papers mentioned in the application form have to be submitted. Branch
will outright reject the proposals, which are restricted by Bangladesh Bank or have
any disregard with head office guidelines. Visit the business site of the customer;
verify the particulars which are furnished with the application and by ascertaining the
customer honesty, integrity and business dealing, through other sources also. They
will also see the turnover/transactions of the account. Branch will collect report on
borrower and its sister concerns from the Credit Information Bureau of Bangladesh
Bank. They may also obtain credit report from local bank and financial and credit
institutions.
18.4 The Things Which To Be Considered And Analyzed Before Sanction Credit
1) Different types of securities:

Goods & Products
FDR
Sanchayapatra.
ICB unit certificates
Share
Debenture
Gold
Insurance policy
Provident fund
Transport
Land, Building, machinery
L/C
2) Borrower Selection:
Lending banker is always exposed to risk of non-repayment by the borrower. The
bankers while selecting their borrowers should have a clear appraisal about them. The
proper selection of borrower is the vital point to be considered by the lending bankers.
The study of a borrower is a study of his character, capacity and capital eligibility for
a bank advance.
Character denotes the integrity of the borrower, i.e., he should have willingness to
repay the money borrowed. This is the greatest single asset any individual can have
and is the first factor to be evaluated. A person who is really honest will rarely change
whatever be the testing factors. His determination to be honest and willingness to
repay, when possible, will remain steadfastly like a rock. This aspect is the good part
of the security for any bank advance. However, honesty alone does not constitute
character.
Banks get information on borrowers through various sources enumerated below:
 Loan application.
 Mode of living.
 Market reports through friends or rivals mostly from the borrower’s trade or
business.
 Borrower’s account with the bank or statements of account with other banks.
 Statements of assets and liabilities. In the case of companies, their balance
sheets and profit and loss accounts for say three years, records of the registrar
of companies etc.
 Income tax returns.
 Wealth tax returns.
 Trade and other reports in the press.
 Reports about actions and decrees in Government Gazettes.
 Registration, revenue and municipal reports.
 Other banker and branches of the bank.
 Operations by a customer on his safe custody account or locker.
 Bangladesh Bank Credit Information Bureau.
 Personal contact including personal interview.
4) Request for Credit Limit:
Request for credit limit contains the following information regarding the applicant:
a. Name of the applicant.
b. Business address (with telephone number) of the credit.
c. Introducer’s name, account number & address.
d. Date of establishment/incorporation.
e. Trade license number, date and expiry date.
f. Nature and details of business/products.
g. Details of securities offered (with estimated value):
 Primary security:
 Collateral security: (Brief description)
 Market of the security:
h. Balance sheet/income statement of accounts of the following years

attached (preferably last 3 years).
i. Other relevant information: (Use additional paper if necessary)
5) Documentation procedure:
The whole process of completion of the documents to sure the credit is called
documentation. It is necessary for acknowledgement of the debit by the borrower /
guarantor /mortgagor and charging of securities in favor of the bank by them.
Documentation must be proper and correct for the safety of a credit. Proper
documentation is essential to safeguard bank’s interest. It is made covering its all legal
aspects. The process of creating charge over the assets is called perfection of security.
Charging a security means making it available as a cover for a credit. Not only
security has to be good but the method of charging should be legal and perfect. It is,
therefore, important that the charge must be complete and all necessary formalities are
completed with, so that in case of default by a borrower, the security will be available
to the banker.
There are different types of charge created on securities considering types of assets,
nature of credit and the degree of control over the debtor’s properly required by the
banker.
The common ways of charging securities are as follows:
 Lien
 Pledge
 Hypothecation
 Mortgage
 Assignment
 Set-off
 Lien: Lien means right to hold the securities till the liability is adjusted. For
excusing the right of lien the following conditions to be fulfilled:
1. The security over which the right is to be executed must be in possession
of the creditor who will exercise it.
2. There must be a lawful debit due to the person in possession of the goods
by the owner of the goods.
3. There must not be any contract to the contrary.
 Pledge: Pledge may be define as the transfer of possession of goods and
produce by a debtor to his creditor as security for the payment of a debt or the
fulfillment of some obligations by the transferor. The essence of pledge is that
possession passes to the pledge but legal ownership remains with the pledge.
Only moveable property can be pledged.
 Hypothecation: hypothecation means the charging of property to secure debt

while the possession and ownership of the property remain with the debtor. A
deed of hypothecation gives the bank the right to sell the goods if the loan is
not repaid.
 Mortgage: Mortgage is a transfer of interest in specific immovable properly
as security by the owner for the payment of debt. Mortgage is mainly two
types. Such as:
19.0 SPECIAL PRODUCTS OF NCCBL
19.1 Small Business Loan

Purpose:
For smooth running / expansion of business of small entrepreneurs who are honest,
sincere and promising (although profitable but lack of security/ collateral to be offered
against Bank loan).
Credit Terms Charges Interest Service Risk Fund
Ceiling: charge
Up to TK. 3 to 5 Application: 15% at 1 % on the : 1 % or

5.00 Lac Years. Tk. 100 quarterly rest approved minimum
fund Tk. 500.
Repayment:
Equal monthly installments starting from the following month of disbursement:

Installments to be paid within 10th day / month.
Defaulted: if 3 installments are not paid, penal interest @ 1% on the defaulted
amount or Tk. 100 (higher one)
Eligibility:
i) 5 years experiences in the current business
ii) a current a/c with branch
iii) must be a profitable concern
19.2 Personal Loan
Purpose:
To meet emergency financial expenses of service holders, such as:
 Medical treatments
 Marriage
 Maternity
 Education loan
Ceiling: charge
Up to TK. 06 months Application: 15% at 1 % on the : 1 % or
1.00 Lac to 5 Years. Tk. 100 quarterly rest approved minimum
fund Tk. 500.
Repayment:
Defaulted: if 3 installments are not paid, penal interest @ 1% on the defaulted
Eligibility:
 Salaried, age between20 to 50 Years
 Banker: take home pay at least 50 5 of net salary
 A saving a/c with the bank.
19.5 Consumer Credit Scheme
In order to provide financial assistance to the limited income group for raising their
standard of living by acquiring domestic durables like Refrigerator, TV, washing
machine , Furniture , Computer, Motor car, , etc., NCCBL introduced a Scheme to
improve the quality of life particularly of the fixed income earner of the society and
this scheme is known as Consumer Credit scheme.
Eligibility for Credit

The persons having confirmed / permanent job in any one of the following category
organizations and age between 20 to 50 years eligible for availing of credit facilities
under the scheme.
Purpose:
To meet house – hold needs of service holders:
 Furniture
 TV
 Computer
 Refrigerator
 Washing machine and others household goods.

Ceiling: charge
Up to TK. 02 Years. Application: 15% at 1 % on the : 1 % or

1.00 Lac Tk. 100 quarterly rest approved minimum
fund Tk. 500.
Repayment:
Defaulted: If 3 installments are not paid, penal interest @ 1% on the defaulted
Eligibility: Eligibility for Credit
The persons having confirmed / permanent job in any one of the following category
organizations and age between 20 to 50 years eligible for availing of credit facilities
under the scheme.
 Salaried, age between20 to 50 Years
 Banker: take home pay at least 50 % of net salary
 A saving a/c with the bank.
19.6 Micro Credit Financing
To fulfill its commitment to play a vital role in social economic development of the
country NCCBL has introduced a small and medium credit scheme for its customers.
Purpose:
 To encourage and develop medium and small entrepreneurs
 To provide credit with minimum complexity and
 To generate employment
Under the scheme NCC Bank Limited is providing the following loan:
 To meet working capital
 To purchase capital machinery and for expansion of business and
 For purchase household durable goods
The scheme covers following areas of options:
1. Agriculture sector- loan, Poultry and Fisheries, fish processing, Plot, fish
storage and Marketing Project etc.
2. Small and Cottage Industry- handicraft maker, blacksmith, fishing net

weaver, handloom industry, goldsmith, watch assembling project, mineral
water planet etc.
3. Service Holder- transportation, medical service provider, different type of
owners, hotel and restaurant owners, vocational center etc.
4. Household durable and Consumer credit- electric equipment, electronics,
vehicles, furniture, medication and hospitalization, cookeries etc.
5. Information Technology Sector- computer and computer accessories
purchase for household use, selling up of computer training institute,
software development for exporting purpose, software development for local
business and household users.,
6. Energy Sector- household purchase of substitute energy like UPS, IPS,
Battery etc. Biogas technology, solar electricity producing plant, small
electricity production etc.
The amount of above small and medium credit ranges from Tk. 5 Lac to TK. 50 Lac.
20.0 FOREIGN EXCHANGE DEPARTMENT
Foreign Exchange refers to the process or mechanism by which the currency of one
country is converted into the currency of another country. In accordance with banks,
Foreign exchange refers to the general mechanism by which a bank converts currency
of one country into that of another. Foreign trade gives rise to foreign exchange.
Foreign trade is transacted either in the currency of the exporter’s country or that of
the importer’s country or that of a third country acceptable to both the exporter and
the importer.
In the words of Mr. H. E. Evitt, “Foreign exchange is that section of Economic

Science which deals with the means and methods by which rights to wealth in a
country’s currency are converted into rights to wealth in another country’s currency. It
involves the investigation of the method by which the currency of one country is
exchanged for that of another, the causes which render such exchange necessary, the
forms which in exchange may take, and the ratios or equivalent values at which such
exchanges are effected.” The expression “Foreign Exchange” is also popularly used to
denote a foreign currency. A bank is said to buy or sell foreign exchange, which deals
in claims on foreign currency or the actual legal tender money of other countries. It
covers all methods by which the claims expressed in terms of one currency are
converted into another currency and the rates at which exchanges are take place.
20.1Fundamental of Foreign Exchange
There are 3 fundamental aspects of the general mechanism of Foreign Exchange:
 Every country has its own currency-legal tender/distinctive unit of account.

 Banks by bookkeeping entry carried out in the two centers concerned effect
the conversion of one currency into another.
 These exchanges are affected by means of credit instruments viz. Draft, Mail
Transfer, Telegraphic Transfer, SWIFT etc.
20.2 SWIFT
20.3
Introduction
National Credit and Commerce Bank Limited is very happy to announce to have
joined hands with MoneyGram Payment Systems Inc to serve expatriates to send
money back home quickly from anywhere in the word. Moreover, money can also be
sent quickly through MoneyGram from Bangladesh to other parts of the World as is
done through the banking channel. At the moment we are concentrating on home
remittances being sent by the expatriates. MoneyGram Payment system Inc is a non-
back provider of electronic money transfer service. MoneyGram is providing its
customers a service of an unsurpassed quality and superior value. MoneyGram has
over 25,000 Agent locations throughout the world. Persons anywhere require
transferring cash quickly, reliably, conveniently and at attractive prices to more than
115 countries can depend on MoneyGram agents for the service.
Our Mission
In our continuous commitment to serve the country’s economy in a better way we
have made agreement with MoneyGram Payment Services Company to facilitate
transfer flow money from abroad. The best benefit of the service can be derived by
our expatriates who are living in many countries of the world. Many banks do not
entertain customers for remitting money without having accounts. Big parts of our
expatriates’ income are channeled through clandestine means. Moreover many of our
expatriates cannot get acquainted with banking formalities immediately on reaching
abroad. It is not necessary to have a bank account to use Money Gram Service.
Money Gram is represented in over 115 countries and is available at more then 25,000
locations worldwide. In the USA alone Money Gram is available at more than 15,000
locations. Besides in the UK MoneyGram is available through 1700 Postal Branches
and 500 Thomas Cook travel shops making it the UK’s largest money transfer
network.
Finally using the MoneyGram Service could not be simpler. All one has to do is to
visit a conveniently situated MoneyGram agent anywhere in the world and hand over
the money they want to send their relatives or friends along with the one-off
transacting fee.
 Sender completes a “Send” form and gets a Receipt. MoneyGram
Agent gives a Ref. No. which has to be passed to the Receiver.
 Recipient the goes to NCC Bank Branch in Bangladesh. Fills out a
“Receive” form and show proper identification.
 NCC Bank makers and inquiry on the MoneyGram computer network
to obtain authorization to pay Recipient and Recipient receives the
fund.
MoneyGram is one of the fastest ways to transfer money. Customers using
MoneyGram can send or receive money usually within 10 minutes from anywhere
in the world. At NCC Bank we provide the Recipients immediate attention ad due
care. We have made it a point to pay the Recipient within minutes. The Recipients
need not require having a bank account. We do not levy any extra charge. We give
a better exchange rate to the Recipient. The Recipient can approach any for the
NCC Bank branches at his convenience for payment.
22.0 INFORMATION SYSTEMS FOR EFFECTIVE BANK

PRODUCT AND SERVICE MARKETING
While in the first half of the 19th century people used to wait hours to hours to
communicate with the buyers of different places and countries, the invention of
information technology has relieved their mental agony of waiting and also brought
magical change in transforming information round the globe. The invention of
information technology has also brought a significant change in collecting
information about the markets and thus increased competition among the marketers.
Now, no one can imagine winning the market without the help of information
technology which is sign quo non to develop buyer driven products and to reach them
effectively and efficiently to the hands of all customers. Importantly the invention of
information technology has affected the banking industry too in terms of costs,
convenience, delivery, and speed of providing services and thus today’s banking
institutions are also engaged in free competition to satisfy the needs of the market.
22.1 Information System in Marketing of Banking

Products
Banking products encompasses all goods and services that a bank or financial
institution offers in market to its target customer. And, marketing of banking products
includes all tools, techniques and strategies that a bank uses to sell its products to the
target market. The ultimate objective, of course is to build a win- win relationship
with the valued customers. However, the valued customers can only be created
through offering of demand oriented products at a reasonable price. The need of
marketing arises here as marketing practically work with the satisfaction and
dissatisfaction of the customers. Marketing says which a product is to be sold at
which price and at which channels.
22.2 Marketing Information System
Marketing is a very broad concept. When we are talking about marketing, we are not
talking about sells and advertisement rather we are focusing on all activities and
strategies that a marketer undertake to satisfy its target market. It encompasses-
market research, product Development, competitors’ movements, pricing, advertising,

sales promotion, customer analysis, and even politics. However for development of an
effective information system, we would focus here the three important questions:
1. What business are we in?
2. What business should we in?
3. What capacities do we have?
23.0 FINANCIAL PRODUCTS AND MARKETING IN

BANGLADESH
There are five major areas in banking marketing techniques could be successfully
applied, such as:
 Market Segmentation
 Customer Behavior in Bank Selection Criteria
 Customer Loyalty
 Bank Products/ Service Study
 Bank branch Research
 Forecasting and Research future significant market need.
In marketing of banking financial products, the controllable tactical marketing mix is

product, price and place. In general, the financial products of a bank can be
categorized as follows:
Mobilization of Deposit
Deployments of Fund
Offering Financial Services
Extending Agency Services
Offering consultancy service
International Trade and Foreign Exchange
Customer Services
Promotion of Foreign Investment
Customer Services
Social Service Product Promotion.
However a bank needs at least three broad categories of market information to

manage its marketing activities properly. These are:
 Information about market forces

 Information about market behavior and
 Internal information.
Appropriate financial products can only be developed if the banks have an effective
information system that connects internal and external markets. Side by side efficient
marketing people needs to deployed for convincing the customer. Interior decoration
of the bank is another important area where bank should focus their attention. Finally
bank should give more attention to the market research and incentive packages for
effective selling of financial products.
24.0 PROBLEMS OF NATIONAL CREDIT & COMMERCE

BANK LIMITED
24.1 General Problem of NCCBL:
1. Lack of Manpower: Where are not enough officers in all the departments of
the Agrabad branch to handle the activity properly?
2. Absence of Job Description: All the employees have not well structured job
description. For this reason the officers are often seen to work haphazardly.
3. Improper Management: NCCBL does not exercise corporate client
managements for which the bank remains in backward in knowing latest
information about the corporate client.
4. Working Environment: There is lack of enough and proper promotion for
different products of the bank. It makes the customer ignorant of the banks
services.
5. Lack of Islami Banking
6. They are not enough conscious about their quality service providing in
competitive market (in some branch & some times).
7. NCCBL brochure and website is not gathering sufficient information and not
enrich.
8. Frequent Policy Change of Bangladesh Bank: Sometimes it is impossible to
meet the demands of the central bank.
9. Lack of Inter Bank Cooperation: This creates problems for getting
information about the customer.
10. Government policy: Sometimes Govt. policies are not favorable for banking
business.
24.2 Problem Related with Credit Department:
1. High Cost of Fund: The cost of fund of this bank is higher than others bank
and in increasing g rate.
2. Higher Rate OF Interest: Due to the high fund cost the bank has to charge high
interest rate on lending. For this the bank cannot attract more clients for credit
or investment.
3. Lengthy Procedure: the procedure of processing loan is complex and lengthy.
4. Inadequate information: Some customer gives improper and incomplete

information about themselves. So it increases the credit risk of bank.
5. Limited Credit Scheme: The menu of the service of the branch is not wider for
serving more customers.
26.3 Problems Related in Marketing for Banking

Business:
PRODUCT:
 Product feature are not well-known about customer and product feature is not
more attractable.
 Product developments are not emphasizing by banking function. They are
generally busy fro general banking.
 Product category is in small and with few departments.
 There is no marketing research that search for new products in order to
customer needs and wants.
PRICE:
In pricing deposit products, bank management is caught between the horns of

an old dilemma.
In pricing loans and advances products bank charges higher cost so that many
potential and existing borrower cut their relationship with bank.
Frequently change the charges of both products that’s create some setback.
PROMOTION
Insufficient Advertising: There is a lack of enough and proper visual and
others types of promotion for different products of the bank and also service.
There is no customer information booth and advertising that makes
information availability of customer.
PLACE
 Target market is not wide in whole country in every district or
thana level.
 Branches are not covering all type of customer.
25.0 SUGGESION
NCCBL should try to establish subsequent interest rate in both of

deposit and lending products that attract more customers.
NCCBL should try to increase the market share by providing attractable
new products and quality services.
Implement strong monitoring system that decreases the default loan.
NCCBL should update modernized, enriched information of its brochure
and website that create opportunity of promotion and increase getting
more clients.
Complain of customers should be decreased at zero level.
The bank should always try to follow the Bangladesh bank and also
monitor others competitor banks as adjusting mode that increase profit
margin and growth level of bank.
NCCBL should recruit more young and dynamic manpower.
As early as possible the bank should provide online banking in all
branches of NCCBL.
Bank should arrange customer oriented procedure of sanctioning loan by
the increase customer relationship marketing.
Always practicing relationship marketing by maintaining specific
customer profile and giving them highest value in business that decrease
the level of risk and also create new customer.
Arranging training program for all employees in every year and special
training for selected personnel in BIBM on current market demand
subject related that enhance service knowledge of manpower.
Office space of the every branch should be wider and well decorated.
Working environment should be attractive, familiar and motivational.

Increases inter bank cooperation that getting more necessary information
about the borrower.
26.1 Marketing Solution
Firstly bank should liberate the marketing department that’s way they will work
freely, dynamically for increasing profitability as well as customer satisfaction.
And they can also increase its operational as well as opt to market demand by
following way:
Devise out new products in deposit section and in loans scheme

products line for serving more diversified clients and capturing
current market demand to hold market position.
Bank should introduce new line small scale loan for serving more
client and increase business for getting higher profit.
Arranging market research for new products that give the
differentiate product to the customer.
Bank should always develop his product by moderating, changing or
creating new product for whole market capture.
Price or charge should be always adjustable (Not over 4% from
deposit) in deposit and lending rate so that people believe about their
satisfaction.
Bank will choose those places that will be give higher deposit and
also enhance bank business that means landing.
Product design should attract diversified customer.
Budget higher amount advertising in both printing and visual media
that increase customer.
Establish separate information booth.
Increase societal marketing program.
27.0 SPECIAL FINDINGS AND CONCLUSION

Due to the work in NCCBL as an internee, I found some special problem
regarding financial solution. In our country most of the people’s income is
lower level and most of them are middle class in society (without lower level).
In most of the case, middle class people need financial help in unscheduled
money demand work like, higher education, marriage, treatment and
housewives want deposit or savings some money in bank because security and
benefit. But banking service and products are not in boundary of those people.
Because when anyone wants to open an account in bank he/ she need to an
introducer but for middle class or housewives have not contact those group. It
is possible only when people already have a business or special recognition in
society. In this regard banks also have not any initiatives. So we can easily say
that bank work only some sector of the society not for all level of society.
Information is another important aspect for banking activities. In our country,

most of general people are not conscious about banking service that how it can
will help them. For that reason, they are fall in unwanted situation in finance.
As a marketer point of view, banking services are fully marketing oriented in
current competitive market. Its every stair needs marketing plan, strategy but
bank management is not practicing that’s way which will be brought large scale
of markets share, profit and leadership position in banking sector.
NCC Bank Limited is a second generation bank in Bangladesh and has a strong
position in the present competitive market. The bank has not restricted itself to
traditional function rather it has extended its wings into numerous sectors. The
performance of the bank is satisfactory till its inception and achieving growth
in all key areas of operation. National Credit and Commerce Bank Limited by
its performance has established itself as one of the leading bank in the area. I
wish that the bank would continue its face of growth and retain its present
strong position as well as image in the market.

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METHODOLOGY OF THE STUDY

Report should be prepared to consume and observing practical situation. It is carry

 Personal interview with the officer of NCC Bank Limited.

 Face to face conversation with the clients.

 Make telephone call.

 Annual report of NCC Bank Limited.

 Manual of Bangladesh Institute of Management (BIBM).

 File study, scheme profile and booklets of various Banks.

Bangladesh. To attain the main objectives the specific objective are as

1. To gather practical experience and knowledge and to apply those in

2. To be acquainted with the practice of modern banking business.

3. To gather knowledge about the banking products and their marketing in

4. To measure the NCC Bank Limited has performance and financial

5. To identify the factors affected the banking activities.

6. To identify the pink point problems encountered by the clients.

7. To foot forward to recommend for increasing the Banking service of

8. To acquaint with the services and facilities rendered by NCC Bank

9. To know the promotional activities of NCC Bank Limited.

10. To forecast the documents needed for general banking, accounts,

 I got very little opportunity to do work practically after understanding the

 I had to face prohibition when I tried to work in depth.

 Most of the customers were found reluctant to express their dis-satisfaction in

1.1 Short Profile Of NCCBL

Banking Operation System Both Conventional & Retail Banking System

1.2 Business Highlighting Factors of NCCBL

The Bank made an Initial Public Offer (IPO) in 1995.

The bank has been paying a reasonable dividend regularly.

1.3 Company Philosophy

1.4 Company Objective

National Credit & Commerce Bank Limited is organized to provide commercial

Philosophically, a bank is a financial institution, which accepts depositors’ money for

1.7 Efforts are focused:

To development of newer bank products and services to delivery higher customer

1.8 Marketing Strategies:

2) How we serve our customers is just as important as the services we provide.

3) Never preach to our customers. Learn from them.

5) Keep your promises to our customers.

6) Be friendly and absolutely professional.

8) Internal matters should never distract attention from customers’ affairs.

9) Character, resilience. Never allow yourself to be distracted from performing

10) Finally, enjoy yourself.

2.1 FUTURE PLAN

Enhance the saving tendency by motivating people,

To encourage the investment in private sector

To establish marketing department in each branch.

Managing and operating the Bank in the most efficient

2.2 DYNAMIC INTEGRATION OF NCCBL

National Credit & Commerce Bank Limited is a second generation bank in

3.0 FINANCIAL OVERVIEW

Financial Highlights: (Figures in Million Tk.)

1 Authorized Capital 1000.00 1000.00 1000.00 1000.00 1000.00

2 Paid up Capital 275.88 275.88 303.47 379.34 531.07

3 Reserve funds other

6 Advances 3843.35 5414.87 10245.65 11211.39 12886.69

1 Profit before tax

1 Profit after tax

Analysis as on 31st December 2003

3.2 Financial Performance

600 Paid up capital

SL Particulars 2003 2002

3.4 CAMEL RATING OF NCC BANK LIMITED

CAMEL rating (C-Capital Adequacy, A-Asset Quality, M-Management, E-

1) CAPITAL ADEQUACY RATIO:

Capital Adequacy = Capital and Reserve (adjusted) * 100