Analysis Report On Dutch Bangla Bank

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A Snapshot of DBBL

1.10 Introduction

Historically, commercial banks have been playing a vital role in the world economy and financial system it is the place where the people with surplus fund can deposit the money with full trust and safety and also the people who are in deficit position can borrow money to fulfill their needs. Bank is not only a financial institution; it is a helping hand for the common people, different organizations and also for the government.

Banks services are not only limited in deposit and loan services, the functions of commercial banks have changed as the needs of the economy have changed. There are other financial institutions that also provide the service of deposit and loan. But there are some difference between other financial institutions and banks. Other financial institutions do not provide the withdrawal service of money through demand deposits and they also do not concern about the basic financial needs of the consumers like fund remittances inside and outside the country. And they also do not have foreign exchange service, which is one of the most important services that banks provide.

By continuous research and development commercial banks are providing the best financial services with the superior technological facilities. They are acting as intermediary between the deficit units and surplus units. Through their activities they are actually driving the wheel of the economy. Country’s prospect and future economic conditions largely depend on the activities of the commercial bank.

Dutch Bangla Bank Limited is also playing its role efficiently for the prosperity and good economic future of the country.


Dutch-Bangla Bank Limited (the Bank) is a scheduled commercial bank. The Bank was established under the Bank Companies Act 1991 and incorporated as a public limited company under the Companies Act 1994 in Bangladesh with the primary objective to carry on all kinds of banking business in Bangladesh. The Bank is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited.

DBBL- a Bangladesh European private joint venture scheduled commercial bank commenced formal operation from June 3, 1996. The head office of the Bank is located at Senakalyan Bhaban (4th floor), 195, Motijheel C/A, Dhaka, Bangladesh. The Bank commenced its banking business with one branch on 4 July 1996.

1.12 Profile of the bank

Dutch-Bangla Bank limited is the first Bangladesh-European joint venture commercial bank incorporated in 1995. With the permission of Bangladesh bank limited, commenced formal commercial banking operation from the 3rd June 1996.

The Netherlands Development Finance Company (FMO) of the Netherlands is the international sponsor of the bank. The FMO is the Dutch development bank of the Netherlands specialized in the financing of private enterprises in Asia, Africa, Latin America and Eastern Europe.

Under a technical assistance grant from the FMO, ABN-AMRO bank of the Netherlands provided technical assistance to Dutch-Bangla Bank Limited during the first year of operation of the bank (1996-97)

Dutch-Bangla Bank Limited (DBBL) primarily is a public company limited by shares, incorporated in Bangladesh under company act 1994. It is also guided by the bank company act 1991 (and its subsequent amendment) and Bangladesh Bank ordinance 1972, so as to enable the company for doing banking business.

1.13 History of DBBL

Dutch-Bangla Bank Limited is a brainchild of its chairman Mr. Mohammad Shabuddin Ahmed. He dreamed it long back, when he, had been trying to arrange fund for Tammijuddin Textile Mills Ltd. (TTM) and Kader Synthetic Fibers Limited (KSFL) through the traditional banking system. TTML is a public ltd. company. Its main business is yarn manufacturing with conventional spinning mills of 44000-spindles capacities. KSFL is also a public company limited by shares with an investment of about Tk. 2.0 billion and, now engaged in manufacturing polyester draw texturized and twisted yam. Three international financing agencies like ADB. FMO, AFIC AND two local development-Financing institutions, BSB & SABIONCO have their investment in KSFL, both in terms of loan and equity. The projects were implemented, but had to face time and cost over run due mainly to the procedural delay in getting access to credit. Among others this might be a good reason for thinking about a bank where in the entrepreneurs will have easy access to modem banking services.

Mr. Ahmed has close relationship with FMO, the Netherlands development finance co. limited since 1983. Netherlands Financiering-Maatschappij voor Ontwikkelingslanden n.v. (FMO), a well reputed Holland based international financing institution has been extending their services, especially in development of SSE, SME and many other socio-economic activities mainly in the developing countries. Mr. Ahrried however: opened dialogue with FMO regarding the banking project some times in “1989:1 So-fat my knowledge goes, the first evidence in black and white was the letter dated January 07,1990 written to one Mr. D.C. VenderBiji, the then manager south west-Asia department, of FMO. In a letter dated March 22, 1990 Mr. Groosman, another brilliant offer of FMO visited Bangladesh and wrote to Mr. F.J. Smit, the then Deputy Managing Director, FMO advocating Mr. Ahmed’s proposal. In this way, correspondence in writing, discussion over telephone had been going on. Mission came to study the market, to prep are feasibility report and memorandum of understanding. The proposed name of the bank at first was ‘Development Finance and Commerce Bank Limited (DFCBL). At one stage opinion passed by the FMO mission that Bangladesh is not yet ready for such investment’. But Mr. Ahmed did not leave the idea; rather he started exploring the possibility more vigorously.

At last Mr. M.E.H.J Groot of small-scale department of FMO in his letter, dated December 07, 1992 responded positively indicating that ‘small enterprise department of FMO is in a position of finance intermediary Bank’ and accordingly asked for a ‘Business plan’. The interim reply we are working on it and the document is coming in due course, we sent of FMO on 22-12-92. The vigorous exercise of market and collection of primary data in crude from through ‘questionnaires’ started. The proposed name at that stage changed to ‘long term credit’ and commerce Bank lid. Thereafter lots of reports were prepared, tons of papers were utilized and not only man-days but also hundred of man-nights were spent before materializing the dream through convincing FMO, taking approval of GOB, Bangladesh Bank, MOF, RJC, SEC, BOT etc. The result is today’s DBBL, the First European joint venture Bank in Bangladesh.

Any way, let us now come to the theoretical aspects of the topic that usually requires following for formation for a company, in general and banking company, in particular.

Banking company is also a company like others and required to be formed by way of incorporating it with the register of joint companies and firms (RJSC &F) as per companies act. 1994. But unlike others, it is also guided by the Bank company act 1991 and Bangladesh Bank ordinances.

The major steps to follow may been seen on the screen, During the formation stage several including preparation of per-investment feasibility study, strategic plan, business plan, which inter-alias covers setting goals and objectives, formulating strategic plan, forecasting financial profitability, analyzing SWOT etc. The investors required to be convinced and satisfied with the goals, objectives, profitability and risk involvement before making investment.

1.14 Mission

Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a commitment to social responsibility. “Profits alone” do not hold a central focus in the Bank’s operation; because “man does not live by bread and butter alone”.

1.15 Vision

Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics, music and entertainment, science and education, health and hygiene, clean and pollution free environment and above all a society based on morality and ethics make all our lives worth living. DBBL’s essence and ethos rest on a cosmos of creativity and the marvel-magic of a charmed life that abounds with spirit of life and adventures that contributes towards human development.

1.16 Core Objectives

Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and satisfaction and to become their first choice in banking. Taking cue from its pool esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and epitomizes its vaunted marques “Your Trusted Partner”.

1.17 Board of Directors

1. Mr. Abul Hasnat Md. Rashidul Islam, Chairman

Mr. Islam is the Chairman of the Bank. He is an M.Com and has wide experiences in International Business (Import & Export) of various commodities since 1973.

2. Mr. Zaheed Hossain Khan, Director

Mr. Khan did B.Sc Engineering (Chemical) from Bangladesh University of Engineering and Technology (BUET). He is an Ex-Banker and also held a higher management position for more than 10 years in a joint venture Cotton Spinning & Synthetic filament yarn manufacturing Industry.

3. Mr. Bernhard Frey, Director

Mr. Frey, who is a Swiss national, is the Managing Director of Etacol Hong Kong Limited, a reputed business and trading firm of Hong Kong. He has been nominated as a Director of DBBL by Etacol Hong Kong Limited, one of the foreign Shareholders of the Company. Mr. Frey is a Chartered Accountant and well experienced in trading, manufacturing and banking administration.

4. Mr. Shahabuddin Ahmed, Director

Mr. Ahmed has been elected as Director from the General Public Shareholders. He is a renowned and well-experienced yarn merchant. He is the proprietor of M/S. Haji Ramijuddin Traders, Madhabdi, and Narsingdi.

5. Mr. Md. Shahidur Rahman, Director

Mr. Rahman is an M.S.S in Public Administration. He is a renowned garments industrialist and has wide ranging experiences in this line. He is the Managing Director of Alike Design Ltd. and Aright (BD) Limited; both are export oriented garments manufacturing industries.

6. Mr. Md. Yeasin Ali, Managing Director

Mr. Ali is the Managing Director and Ex-Officio Director of DBBL. During his long banking career, he held the position of Managing Director of Rajshahi Krishi Unnayan Bank, Rupali Bank Ltd., Bangladesh Shilpa Bank and important position in Bangladesh Krishi Bank and Agrani Bank

1.18 Management Setup
Name Designation Division
Mr. Md. Yeasin Ali Managing Director
Mr. A. H. M. Nazmul Quadir Additional Managing Director
Mr.K. Shamsi Tabrez Deputy Managing Director(Administration)
Mr. Ghulam Kabir Deputy Managing Director(Operation)
Mr. Muhammad Shahidul Islam Senior Executive Vice President Credit Division
Mr. Abul Kashem Md. Shirin Senior Executive Vice President Information Technology Division
Mr. Khan Tariqul Islam Senior Executive Vice President Accounts Division
Mr. Khan Tariqul Islam Company Secretary Board Secretariat
Mr. M. Mominul Haque Executive Vice President General Service Division
Mr. Moyen Uddin Ahmed Executive Vice President Card Division
Mr. A. K. M. Nazmul Hossain Executive Vice President International Division (Treasury Back Office)
Mr. A. K. M. Shah Alam Senior Vice President Marketing & Development Division
Mr. A. K. M. Shah Alam Senior Vice President Treasury Division (Front Office)
Mr. Abul Munim Khan Senior Vice President Corporate Banking Division
Mr. Iqbal Amin Senior Vice President Credit Administration Division
Mr. Md. Shams-uddin Ahmed Senior Vice President Human Resource Division
Mr. Md. Harun Azad Senior Vice President Internal Control & Compliance Division
Mr. Mohammad Abdul Motalib Senior Vice President Credit Monitoring & Recovery Division
Mr. Md. Kamruzzaman Vice President Retail Banking Division
Other Department/Section/Wing:
Name Designation Dept./Section/Wing
Mr. Tasnim Uddin Ahmed Executive Vice President Training Wing
Mr. Md. Shahazada Basunia Asst. Vice President Public Relations
1.19 Committees
A. Asset & Liability Committee (ALCO)
1. Managing Director Chairman
2. Additional Managing Director Member
3. Deputy Managing Director (Operation) Member
4. Deputy Managing Director (Administration) Member
5. Head of Credit Division Member
6. Head of Corporate Banking Division Member
7. Head of Treasury Division (Front Office) Member
8. Head of Accounts Division Member Secretary
B. Credit Committee (CC)
1 Additional Managing Director Chairman
2. Deputy Managing Director (Operation) Member
3. Deputy Managing Director (Administration) Member
4. Head of Credit Division Member
5. Head of Credit Administration Division Member
6. Head of Retail Banking Division Member
7. Head of Corporate Banking Division Member Secretary
C. Management Committee (MC)
1. Managing Director Chairman
2. Additional Managing Director Member
3 Deputy Managing Director (Operation) Member
4. Deputy Managing Director (Administration) Member
5. Head of Credit Division Member
6. Head of Information Technology Division Member
7. Head of General Service Division Member
8. Head of Internal Control & Compliance Division Member
9. Head of Marketing & Development Division Member
10. Head of Human Resource Division Member Secretary
D. Recruitment/Promotion / Interview Committee
1. Managing Director Chairman
2. Additional Managing Director Member
3. Deputy Managing Director (Operation) Member
4. Deputy Managing Director (Administration) Member
5. Head of Information Technology Division Member
6. Head of Human Resource Division Member Secretary
E. Purchase Committee: 01
1. Managing Director Chairman
2. Additional Managing Director Member
3. Deputy Managing Director (Operation) Member
4. Deputy Managing Director (Administration) Member
5. Head of Information Technology Division Member
6. Head of Internal Control & Compliance Division Member
7. Head of General Service Division Member Secretary
F. Purchase Committee: 02
1. Additional Managing Director Chairman
2. Deputy Managing Director (Administration) Member
3. Head of Information Technology Division Member
4. Head of Internal Control & Compliance Division Member
5. Head of General Service Division Member Secretary

1.20 Organizational Structure of Dutch Bangla Bank Limited

Chart 1: Organizational Structure

1.21 Responsibilities of Divisions

Board’s Secretariat

Conducting annual general meeting, board meeting and communicating with the members of the board of the directors and helping stockholders for any banking affairs. They also update list of the shareholders and maintain the registration procedure of the new shareholders.

MD’s Secretariat

Assisting the Managing Director in bank’s operational affairs by providing necessary information and particulars. This department also maintains the daily program of the MD’s.

Training Institute

Arranging training program, seminar, and workshop for development of skill of bank’s employees. It also does the selection process of the employees for the training purpose. These institutions not only arrange training courses itself; they also have a contract with Bangladesh Institution of Bank Management to provide training to the employees of Dutch Bangla Bank.

Audit & Inspection Division

Acting as internal auditor of the bank to audit the transaction of bank’s account. Usually this audit has been made in the early time of the year at Dutch Bangla Bank. This audit team also evaluates the performance of the employees individually and reports it in the human resources division. Some time audit comes from the Bangladesh Bank also. They especially check the foreign exchange transactions.

Marketing & Branches Division

Although Dutch Bangla Bank does not provide any tangible product to its consumers but it also needs a strong marketing strategy to serve its services comparatively better than the competitors. The division looks after this job. They take the necessary steps to promote the banking products and services. It also communicate with the branches for banking affairs, like any branch can face liquidity problem or low deposit problem then this division takes proper initiatives to solve that. It keeps contract with the big corporations and institutions to accumulate big amount of deposits.

Personnel Division

Recruiting human resources and maintaining the salary system. It controls the promotion system of the existing officers. They also provide internship facilities to the students of the business school.

Establishment Division

Maintaining bank’s assets and providing stationary items to the branch and head office. It operates the maintenance account and sets the fund range for the branch to spend for the needed accessories. But if the branch exceeds the fund range then they have to take the permission of the head office.

Central Accounts Investment and Fund Management Division

In Dutch Bangla Bank the master account is operated by the head office. It operates the operation of the clearing house for all branches and also the other internal transactions through inter branch transaction account. It also maintains the accounts of the bank for investing the idea fund in the money market instruments.

MIS & Planning Department

This department controls the central database, which contains all the confidential information, the instructions and the bylaws of central bank, and important research works and also the competitor’s information. This department actually does the job of research and development.

Credit Division

Monitoring the advance and approving the proposal of advances through the board of directors. It also maintains all the information about the loan of each branch. They especially process this information for Bangladesh Bank’s Credit Cell called “Credit Information Bureau”.

International Division

Maintaining the foreign exchange transaction of the head office and branches. It controls the international fund transfer among the branches and also verifies the letter of credit and sets the margin for it. It time to time notifies the latest instruction of the central bank to all its authorized dealer branches. This department also keeps the record of foreign currency reserve and disbursement and informs central bank every month with particular statement. They also provide daily exchange rate list to all its AD branches through telex or fax. So these are the responsibilities or job description of the different divisions of Dutch Bangla Bank Limited. The employees who work in these divisions or in the branches are also very important for the bank. Because only their good performance can help Dutch Bangla Bank to reach the expected destination.

1.22 Employees Benefits

In addition to fixed salaries and allowances, employees of Dutch Bangla Bank Limited are given following incentives to motivate them in working.

Incentive Plans

Dutch Bangla Bank Limited provides Cash, Accelerated Promotion, and Special Increment etc. as incentives to its deserving employees. Like every year head office sets a deposit limit for every branch. If the branch can exceed that limit then the employees will enjoy some monetary incentive. Also in between the branch the Vice-President ask the employees to provide their personal contribution to increase the deposit of the branch. The employee who contributes the highest amount of deposit by using their link has been given a nice incentive.

Pension Plans

Dutch Bangla Bank Limited does not have any pension plan, but its employees receive gratuity. They also have provident fund and welfare fund for the employees. The head office invests these funds on the securities, which are non-speculative in nature.

Number of Paid Holidays

The employees of Dutch Bangla Bank Limited get 45 days holidays in a year. They get casual leave of 10 days, and earned leave of 35 days. If one employee does not take the casual leave then he/she will not get this in the next year.


Dutch Bangla Bank Limited does not facilitate its employee with medical, dental or individual life insurance policies but maintains group life insurance for all. If any body died then his/her family will get some amount by the designation.


Dutch Bangla Bank Limited gives two bonuses every year, amounting one basic each. Usually in the Eid time they get these two bonuses.

1.23 Products and Services

Banking Products


· Savings Deposit Account

· Current Deposit Account

· Short Term Deposit Account

· Resident Foreign Currency

· Deposit

· Foreign Currency Deposit

· Convertible Taka Account

· Non-Convertible Taka Account

· Exporter’s FC Deposit(FBPAR)

· Current Deposit Account-Bank

Short Term Deposit Account-Bank

Term Deposit



















Loan & Advances

Loan agst. Trust Receipt Transport Loan Consumer Credit Scheme

Real Estate Loan Loan Agst. Accepted Bill Industrial Term Loan

(Res. & Comm.) Agricultural Term Loan Lease Finance

Other Term Loan

FMO Local currency Loan for SME FMO Foreign currency Loan

Cash Credit (Hypothecation) Small Shop Financing Scheme


Literature Review

With the opening up of the economy of Bangladesh, a dramatic change has been observed both in manufacturing and in service sectors. This has brought higher employment opportunities, increases in income level, and changes in consumption pattern and consequently there emerges a competitive environment in the country. Specifically, the expansion of private banking business, along with customized services, has created a severe implied competition in this sector. This competition has made the service gap wider as private banks offer better services to their internal and external customers. The scenario has created an urge to the bank policy makers to identify the underlying reasons and brought them into consideration the job satisfaction issue. Because satisfaction is interrelated with service which create gap between services or reduce the gap. It has been further envisaged that officers in banking sector play the key role in manipulating their services through implementing policy that has appeal to their customers. In such situation, job satisfaction of bank officers becomes an important issue that has to be taken care of in order to achieve ultimate goals of the banking sector in Bangladesh. To identify the service gap of Dutch Bangla Bank Limited we need to identify the job satisfaction of the bankers as well as to know how customers expect the service from the bank.

2.1 Background Analysis


“Services are going to move in this decade to being the front edge of the industry.”(Louis V. Gerstner, 2001) we can broadly define services are deeds, processes and performances. In economics and marketing, a service is the non-material equivalent of a good. Service provision has been defined as an economic activity that does not result in ownership, and this is what differentiates it from providing physical goods. It is claimed to be a process that creates benefits by facilitating a change in customers, a change in their physical possessions, or a change in their intangible assets.

Service Satisfaction

The dictionary defines “satisfaction” as “fulfillment” or “gratification.” Early exploration of library user satisfaction was based on this literal definition that sought to identify a binary state of whether or not the user was satisfied. Since the 1980s consumer research has moved away from this literal meaning and pursues the study of customer satisfaction in terms of describing consumer experiences. The concept of user satisfaction in the library literature likewise has evolved to encompass a broader focus on the users’ perspective of the library. Applegate defines user “satisfaction… as a personal, emotional reaction to a library service or product.” 1 Bitner and Hubbert suggest that it consists of service encounter satisfaction, “the consumer’s dis/satisfaction with a discrete service encounter,” and overall service satisfaction, “the consumer’s overall dis/satisfaction with the organization based on all encounters and experiences with that particular organization.” 2 Though related, the concept of “service quality” is different from satisfaction, and has offered an alternative direction to assess library performance. Satisfaction is often a short term measure. Service quality evolves over time and relates to the customer’s developed attitude toward a service. There is no single definition of service quality though it is distinguished from satisfaction by its focus on expectations. Within the library literature, reported research has adopted the concept from the Gap Theory of 1 Rachel Applegate, “Models of Satisfaction,” in Encyclopedia of Library and Information Science 60, supplement 23, edited by Allen Kent (New York: Marcel Dekker, 1997), 200. 2 Mary Jo Bitner & Amy R. Hubbert, “Encounter Satisfaction Versus Overall Satisfaction Versus Quality: The Customer’s Voice,” in Service Quality: New Directions in Theory and Practice, edited by Roland T. Rust and Richard L. Olvier (Thousand Oaks, CA: Sage, 1994), 76-77. Service Quality, developed by the marketing research team of Parasuraman, Berry, and Zeithaml. They define service quality in terms of reducing the gap between customers’ expectations for excellent service and their perceptions of services delivered 3.Since it is personal to an individual’s experience with a specific encounter or series of experiences, satisfaction may or may not be related to the performance of a library. One user may be satisfied, while another is not, with the same library service. Service quality aims to describe a global judgment or attitude. Hernon and Altman point out: By inference, satisfaction levels from a number of transactions or encounters that an individual experiences with a particular organization fuse to form an impression of service quality for that person. The collective experiences of many persons create an organization’s reputation for service quality.

2.2 Major Findings

When we did a Focus Group Discussion with the employees of Dutch Bangla Bank, we got the positive as well as negative information and also got some information from their potential clients regarding their service. Now we can separate this information in to two perspectives. This are: Banker and Customer perspective. Now focus the problems are:

Clearing Delay

Another problem in Dutch Bangla Bank is clearing delay. Most of the department takes a long time to clear the activities which takes a lot of time of the clients.

Queue Management

One of the major problems in Dutch Bangla Bank is queue management. There is no well structured queue management which cause clients wait for a longer period of time. Some times clients get the output after his fellow client who makes him/her anger.

Lack of Training

Another problem among the employee of Dutch Bangla Bank is lack of training. Due to lack of training activities get hampered and delay which cause clients get frustrated.

Insufficient Employees

The major problem of Dutch Bangla Bank is insufficient employees in their principal branch. Because principal branch is the largest branch among all which cause a huge rush in the bank everyday. So due to insufficient employees clients need to wait in the queue for a long time.

Need of Call Center

Dutch Bangla Bank does not have the facilities of call center. Though they don’t offer different services but to compete in the current market they must have all the latest facilities. For which they should have at least call center.

Priority Banking

Compare with Standard Chartered Bank, Dutch Bangla Bank doesn’t have the facilities of priority banking. So there loyal client doesn’t feel any extra facilities which feel by SCB clients.

International Debit Card

In the banking sector NCC, Prime, DBBL, Eastern, Dhaka, Bank Asia are the major competitors of Dutch Bangla Bank. Though other rivalry offer International Debit Card but still Dutch Bangla Bank doesn’t offer this sort of facilities which makes them one step backward from the competition.

Lack of Promotion

Like other competitive bank Dutch Bangla Bank doesn’t go for much more promotion for their products or services. It causes their customers unaware about their services. When I talk to their potential clients most of them don’t know that Dutch Bangla Bank have the online banking facilities. And this problem happens due to their lack of promotion.

Lack of Communication between Management and Employees

There are lack of communication between top management and employees which cause to create a gap between them and that makes hampered the service.

Unable to Deliver Quality Service

Due to lack of training or insufficient employees sometimes it is impossible to deliver quality service to the clients. It makes the client more frustrated.

Personal Reference

The root problem in Dutch Bangla Bank is personal reference. Without good reference it is simply impossible to get a job or get a promotion in Dutch Bangla Bank.

Though Dutch Bangla Bank has some limitation or lacking in their services but they have some positive side also. They mainly focus on accounts opening section. Their major revenue comes from accounts opening. About 60% of their clients have a current and savings account in the bank. This makes them getting more clients from reference to existing clients. Because they charge the least amount of balance to open a current and saving account in the bank. Their majorities are corporate clients and most of them have current and saving account in the bank.

Charge Minimum Balance

For accounts opening Dutch Bangla Bank charge a minimum balance which makes their clients more chance to open an account in their bank.

Charge Low Fees

In case of opening a fixed account or savings account Dutch Bangla Bank charge yearly fees which is very low compare with other banks.

Online Banking Facilities

Dutch Bangla Bank has stepped into the electronic banking age. Now, you can deposit and withdraw cash, get mini statement, check balance and even transfer money within your accounts and pay installments from any of the branches with online facility. This is just beginning of any branch banking under which other branches will come soon. For the convenience of valued customers, this is the way DBBL would like to modernize it and serve them better by introducing state-of-the-art banking concept as the first generation local private bank.

Credit Card Facilities

Though Dutch Bangla Bank doesn’t have well structured card division but they offer different credit card to their clients. Among them DBBL Gold card, DBBL Pink card and DBBL Classic card are used by clients. DBBL Gold card is an international credit card which used in both nationally and internationally. They also offer DBBL pink card which is actually a credit card only for ladies. This is the first time in Bangladesh that a bank offers a credit card especially for woman.

Last Five Years of DBBL

Taka (million)

BALANCE SHEET (as on 31 Dec.) 2001 2002 2003 2004 2005
Authorized capital 400.00 400.00 400.00 400.00 400.00
Paid-up share capital 202.14 202.14 202.14 202.14 202.14
Share premium 11.07 11.07 11.07 11.07 11.07
Total capital 664.35 909.00 1136.29 1474.50 1909.26
Capital surplus/(deficit) 27.90 98.27 136.23 204.74 217.90
Reserve fund 117.47 176.67 253.09 352.89 490.46
Retained earnings 170.64 236.51 325.78 407.24 579.24
Deposits 11457.76 15975.45 17133.81 21067.56 272411.11
Loans & advances 8044.43 9391.64 11431.32 149876.06 20134.74
Lease receivables
Import 11215.05 11858.01 17549.60 25974.44 26029.01
Export 4800.62 5015.94 7659.17 13581.71 22144.17
Total assets 13463.23 17865.66 19965.60 24560.55 32339.55
Total earning assets 12387.63 16457.32 18342.87 22161.76 28705.58
Total non-earning assets 1075.60 1408.35 1622.73 2398.76 3633.97
Total contingent liabilities 3640.22 3583.34 6786.52 11588.25 15890.15
Total operating income 1299.27 1897.40 2115.49 2366.92 3434.73
Total operating expense 902.01 1473.84 1661.70 1734.51 2495.15
Total income from investment 58.17 102.23 224.32 126.62 183.57
Profit before provisions 397.26 423.56 453.79 632.41 939.58
Total provision 122.72 127.56 71.68 106.44 215.56
Profit before tax 274.54 296.00 382.10 499.02 687.82
Provision for tax 111.74 118.40 171.95 262.67 320.00
Net profit (after tax) 162.80 177.60 210.16 236.35 367.8
Return on equity (ROE %) 37.85 31.50 29.63 26.03 31.01
Capital adequacy ratio (%) 8.02 10.09 10.23 10.45 10.16
Loan deposit ratio (%) 70.00 59.00 66.72 71.09 73.91
Amount of classified Advances (Taka) 41.19 56.41 41.58 23.24 357.35
Provision kept against classified Advances (Taka) 6.94 19.04 19.04 19.04 123.77
Provision surplus/(deficit) (Taka) 1.75 10.38 13.70
Classified loans to total loans (%) 0.51 0.60 0.36 0.16 1.77
Return on assets (ROA %) 1.59 1.13 1.11 1.06 1.29
Return of Investment (ROI %) 7.74 3.11 8.84 6.22 5.25
Cost of Fund (%) 7.86 8.65 8.53 6.90 7.48
Earning Per Share (Taka) 80.54 87.86 103.97 116.93 181.97
Dividend Per Share (Taka) 17.50 20.00 20.00 22.050 25.00
Price Earnings (P/E) Ratio (Times) 5.30 4.64 4.15 15.84 12.02
Net Asset Value (NAV) per share (Tk.) 248.01 309.88 391.85 506.53 667.18
Market price per share (Taka) 427.00 407.00 431.50 1852.50 2187.50
Number of shareholders 588 471 451 403 583
Number of employees 309 401 436 431 548
Number of branches 11 17 17 19 28

2.5 Conclusion

Finally we can say to identify the service gap model first we have to know what are the service offered by Dutch Bangla Bank Limited and what service they are unable to get their clients. Then we have to identify is they understand the customer expectations or not? Do they really fulfill their needs? After analyze all this things we can identify the service gap of Dutch Bangla Bank Limited. To do that first we have to conduct a Focus Group Discussion or an informal discussion with their employees and their existing and potential clients. About their opinions I am identify the above criteria where Dutch Bangla Bank has lacking or strong approaches. So to better the situation or closing the service gap Dutch Bangla Bank need to take some serious action which can change their business scenario. These changes are given to recommendation part of this paper.

2.6 Recommendation

There are some recommendations for Dutch Bangla Bank Limited to improve their service.

Give more training to the employees so that they can ensure the quality service.

Should not be clearing delay when provide the service.

Should have a nice and clear queue management so that client can get the service without any hassle.

Number of employees should be increased so that quick deliver of service will be ensured.

Should have well structured card division which provide all the latest facilities that provide by other private banks.

Should have a call center to ensure the better service to the client so that client can’t switch to other bank.

Should have facilities like priority banking which have other private bank.

Should have International Debit card that offered by other bank.

Dutch Bangla Bank should go for more promotion. People mostly unaware about their services or products which is a major problem for them.

Should have a good relation between employees and top management. It will give employee more motivation and they can share their views and opinions to top management.

Dutch Bangla Bank should ensure quality service to their clients by recruiting proper and skilled human resources.

Top management takes proper decision and gathered more capital to invest.

Should have the mentality to being first in the competition.




This Marketing research is conducted to identify the reasons the cause or create the service gap of Dutch Bangla Bank.

3.1 Broad Objective

“To determine the key factors that causes to create service gap of Dutch Bangla Bank Limited.”

3.2 Specific Components of Marketing Research Problem

Triggering Factors

What are the variables, which have an influence to create service gap of Dutch Bangla Bank Limited. (Delay, insufficient employees, lack of training, unstructured queue management, interest rate, unavailable of different card, personal reference and so on.)

3.3 Specific Objective

My research is about to identify service gap and its factors, which I have already defined in my broad objective. Now I have found about specific objectives.

Specific objectives are:

1. To find out that delay cause to create service gap.

2. To identify that lack of training cause to create service gap.

3. To identify that lack of well structured card division cause to create service gap.

4. To identify that unavailable of call centre cause to create service gap.

5. To identify the unstructured queue management cause to create service gap.

6. To identify that lack of promotion cause to create service gap.

7. To identify that lack of communication between management and employees cause to create service gap.

8. To identify that unable to deliver quality service cause to create service gap.

9. To identify the insufficient business hour cause to create service gap.

10. To identify the unavailable of different card service cause to create service gap.

11. To identify that personal reference can cause to create service gap.

12. To identify that less interest rate can cause to create service gap.

13. To identify that less attention can cause to create service gap.




4.1 Theoretical Framework

So the theoretical framework of the research “Service GAP model of Dutch Bangla Bank” is:

To identify the reasons that create service gap, I have initially identified some variables/factors, which are significantly correlated with the service of Dutch Bnagla Bank Limited. These factors are: delay, insufficient employees, lack of training, unstructured queue management, lack of well structured card division, unavailable of priority banking, unavailable of call center, lack of promotion, lack of communication between management and employees, unable to deliver quality service, unavailable of International debit card. So service gap is based on the simultaneous activation or one/more activation of these variables. These variables are to be described under the exploratory research design (qualitative research), them for data collection I have to select non probability sample, for analyzing data I have to determine non parametric data analysis technique and finally findingswill be interpreted with the existing body of knowledge.

4.2 Analytical Model

Analytical model is a set of variables and their interrelationships designed to represent, in whole or in part, some real system or process. Model can have many different forms. The most common are:

Verbal Model

Graphical Model

Mathematical Model

Verbal Model

Service gap is formed due to dissatisfaction of the customers or employees. It also happens due to miscommunication between management and employees. So in case of Dutch Bangla Bank service I find out some factors that cause to create service gap. And these factors are: delay, insufficient employees, lack of training, lack of well structured card division, unavailable of priority banking, unavailable of call center, lack of promotion, lack of communication between management and employees, unable to deliver quality service, unavailable of International debit card etc.

Graphical Model:

Mathematical Model

The mathematical model of graphical model and verbal model is:

Y = a0 + f (x)

Where, y = Dependent variable (Service)

F (x) = Independent variables (factors which influence service gap)

X1 = Service delay

X2 = Insufficient employees

X3 = Lack of training

X4 = lack of well structured card division

X5 = Unavailable of call center