Analyzing the broad range of financial activities of Premier Bank Limited

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Analyzing the broad range of financial activities of Premier Bank Limited

01. Introduction

Modern banking system plays a vital role for a nation’s economic development. Over the last few years the banking world has been undergoing a lot of changes due to deregulation, technological innovations, globalization etc. These changes also made revolutionary changes of a country’s economy. Present world is changing rapidly to face the challenge of competitive free market economy. It is well recognized that there is an urgent need for better-qualified management and better-trained staff in the dynamic global financial market. Bangladesh is no exceptions of this trend. . Banking Sector in Bangladesh is facing challenges from different angles though its prospect is bright now and in the future.

To meet up the growing needs of skilled and eligible managerial and executive manpower of in the country, Independent University, Bangladesh. has initiated the BBA (Bacholer of Business Administrator) Program which follows the international education quality standards and supervised and approved by the University Grants Commission (UGC). The objective of the BBA Program is to prepare individuals to develop the specific skills and judgment required for effective business operation. The “Internship” program is an obligatory part of the BBA Program to gather practical knowledge about actual business environment and activities. For gathering this knowledge was assigned to The Premier Bank Limited-Panthapath Branch.


The primary objective of the study is to meet the partial requirements for the fulfillment of the Internship program.

The core objectives of the Internship program in bank are as follows –

To gain practical exposures in different financial banking activities.

To familiar with the working environment in bank.

To apply theoretical knowledge in the practical field.

To observe and analyze the performance of the specific branch.

To be acquainted with day to day functioning of service and product oriented banking business.

To study existing banker-customer relationship.

To observe the entire branch banking procedures.


In order to make the Report more meaningful and presentable, two sources of data and information have been used widely.

The “Primary Sources” are as follows –

Face-to-face conversation with the respective officers the Branch.

Informal conversation with the clients.

Practical work exposures of the Branch covered.

Relevant file study as provided by the officers concerned.

The “Secondary Sources” of data and information’s are –

Annual Report (2010) of The Premier Bank Limited.

Periodicals published by Bangladesh Bank.

Different publications and manual regarding banking functions.

The Internet was also used as a theoretical source of information.

Some Books was also used as well for theoretical information.


Observing and analyzing the broad range of financial activities of a Bank and one of its Branches are not that easy. Moreover due to obvious reasons of security and confidentiality, the bank personnel did not provide all the statistical information about their organization. Time is another major limitation as the duration of the program was of three months only and without being a member of the organization, it was not possible on my part to convey some of the sensitive issues and related aspects.

The following main limitations are apparent in the report –

  • Because of time and cost constraints, it was not possible to interview international customer and corporate customer who are very high-profiled personnel and more frequent users of accounts.
  • The account holder outside Dhaka city cannot be covered due to time and cost constraints.
  • During the interview, there was some amount of non co-operation from a section of the respondents, which were unavoidable. Hesitation and refusal of the respondents caused one of the major limitations.
  • The lack of experience of the researcher in the field may become another limiting factor.
  • Lack of time and resource constraint has also limited the scope to conduct the survey smoothly and so as to prepare the report.

2.0. Company overview

Registered Office

Iqbal Centre (4th Floor)

42 Kamal Ataturk Avenue, Banani

Dhaka 1213, Bangladesh

Phone: 9887581-4, 8811417, 9889153

Fax: 880 2 8815393



Website: www.


The Premier Bank Limited is incorporated in Bangladesh as banking company on June 10, 1999 under companies Act. 1994. Bangladesh Bank the Central Bank of Bangladesh issued Banking license on June 19, 1999.

The Premier Bank Limited started its operation from October, 1999 under the Bank Companies Act 1991.The Bank was established by Dr. H.B.M. Iqbal, Chairman in association with a few successful entrepreneurs from various fields of business activities to fulfill his dream to create a Financial Institution that would stand out from the crowd and meet the demands of 21st century.

Since then, the Bank has emerged as a quality Financial Institution and making significant contribution to the national economy. The Authorized Capital of the Bank is BDT 7000.00 million and total capital funds as on 31.12.2010 is BDT 1,318.99 million including paid up capital Tk.557.55 million. The Capital Adequacy ratio is 10.69% as against required 9%. The Bank is a full fudged Commercial Bank and licensed by Bangladesh Bank. The Bank has a strong capital base, with no insider lending and low non-performing loans (0.43%)


“To be the best amongst the top financial institutions.”


To be the most caring and customer friendly provider of financial services, creating opportunities fro more people in more places.

To ensure stability and sound growth whilst enhancing the value of shareholders investments.

To aggressively adopt technology at all levels of operations and to improve efficiency and reduce cost per transaction.

To ensure a high level of transparency and ethical standards in all business transacted by the Bank.

To provide congenial atmosphere which will attract competent work force who will be proud and eager to work for the Bank.

To be socially responsible and strive to uplift the quality of life by making effective contribution to national development.


“Service first” – holds a prime and central focus in the Bank’s operation.

“Easier Banking” – provide our customers with a comfortable and friendly environment and up to date technology application.

“Better Relationship” – view Banking to be a long term relationship with our customer to fulfill their needs and satisfaction.

“Assured Confidentiality” – assure our customers with uncompromising commitment to transact their financial activities with strict confidentiality and professional manner.


The Premier Bank Ltd. is one of the leading Banks in our country. Various types of product and services are provided from different area that can be segment in to three heads –

Banking Operation
  • Corporate Banking:

The Premier Bank Ltd. is recognized as the leading financial institution in corporate finance services in Bangladesh. This section provides the clients with a wide range of financial services like – project financing and investment consultancy, syndicated debt and equity, bond and guaranties, local and international treasury products.

  • Treasury Banking:

The Premier Bank Ltd. Treasury is recognized market leader in major currencies of the world. Connected to the world’s leading financial centers through a network of 33 dealing rooms, it offers round the clock services to customers to meet their foreign exchange requirements. According to the latest ‘Activities of Bank and financial Institutions’ published by the Banking Division of the Ministry of Finance of Bangladesh.

Bangladesh is, in terms of foreign exchange transaction, 1st amongst al the Private Bank in Bangladesh. As a market leader in the local market, PBL Treasury provides solution, through a broad range of customized services

and products, to the needs of its customer. Some Client solutions and risk management services are:

Hedging solutions against adverse market movement.

Advice on efficient hedging policy.

Access to onshore markets through global network.

Offshore Banking unit; a unique system in the local market.

Structured products to match customers’ needs.

  • Consumer Banking:

Consumer Banking provides credit cards, personal loans, mortgages, deposits taking and wealth management service to individual and small/medium sized businesses. PBL offers premium retail banking services to individual customers with a large variety of deposit and loan products. Its Consumer Banking Business continuously meets the challenges of developing new products and services to match the specific requirement of customer. In Bangladesh PBL offer the VISA Credit card local and international both. The aim is to offer world class service on a new era globalization.

  • Islamic Banking:

Islamic Bank is a financial institution whose statues (law), rules procedures expressly state its commitment to the principles of Islamic Shariah and to the banning of receipt and payment of interest on any of its operations. PBL is now launching Islamic Banking system to capture the large number of Muslim customers.

3.0 Human Resources Department of Premier Bank

There are different types of HR practices at PBL. Those practices are built their HR division as possible as stronger. Those HR practices are given below:

Recruiting & Employment Process and Sources

Training and Development Programs and Services

Compensation Structure and Programs

Performance Management Programs


Record keeping

3.1. Recruiting & Employment Process and Sources

Type of Employment: There are two different types of employment opportunities available in Eastern Bank limited; Contractual and Permanent. At present more than 80 percent of employee of PBL is contractual. Employees with yellow batch are basically permanent employee while blue batch is sign of contractual employee. There is another type of batch which is green. This batch is used by the people doing their internship program in the bank. At every level of the banking activities, there are both contractual employee and permanent employee. Sale is only area where all employees are contractual.

Recruitment Plan: Human resource department manages recruitment, training and career progression plan. Premier Bank Limited highlights the importance of developing its people to create a culture of customer service, innovation, teamwork and professional excellence. About 70% of job opening of Eastern Bank Limited are filled by the internal or in-house recruitment process. The rest of 30% vacancies are filled with external recruitment practice. In the external recruitment, there are different types of recruitment method to fill different types of vacancies.

PBL recruits external people by two ways.

“Management Trainee” that has a probation period of eleven months and after the probation period the trainees will be counted as an officer and they will do the different kinds of managerial works.

“Non Management Trainee” which does not have any fixed probation period. Time required for training is department on the recruited person’s performance. In case of non-management trainee, two ways of recruitment is taken place. They are:

Pre-employment testing

Assessment: Skill set, need, availability are the prerequisite criteria for recruitment. The required number of Management Trainee is determined every year depending on the change in business, the requirement of people and the turnover of last year. For entry level and lateral entry vacancy are determined by the strategy department. It has been changed when the strategy department requires a new position to support their strategy. According the job description, HR department assess the required qualifications of a candidate to full fill the position.

Recruitment Source: PBL does not have a practice of going through media advertisement for recruiting a job opening. The Resume collection of interested candidates from web site attached with the PBL link is the main source of external recruitment. It also recruit fresh graduate for entry level position from Intern and reference. For the first time the bank goes to advertisement to fill the job opening recently. Every year, recruitment of the Management Trainee is made through Job Fairs/ contacts with the appropriate academia.

Applications: The employment application is the first chance for applicant to present qualifications. As such, it is extremely critical to continue participation in the examination process. A candidate must meet these criteria to be considered for the position. Most entries on the form are self-explanatory, but a few pointers on filling it out may help:

Evaluation of Application Form: From application of interested candidates, applications are evaluated according to the closer match of job requirement. To recruit Management trainee, the application are weighted under recognized educational institution and Bangladeshi national having foreign educational degree.

Selection test: Recruitment for entry level is made through a basic job related written test and interview. The selection procedure for management trainee involves assessing a person’s ability through a formal “Assessment Centre” and Interview procedure where the candidate will be judged for –



Management Competencies

Pre-employment Medical check-up and reference: Before issuing appointment letter, pre-employment medical examination and reference checks are executed. After completing all necessary procedures, the Management issues an Employment Offer to the new recruits. The offer letter will state the position, starting salary, commencement date and eligible benefits.

Terminations and exit interviews


There is very specifically mentioned resignation rule in PBL. These are the following rule for resignations that PBL employee must follow to resign from PBL-

The employee must give Three months notice in writing through a proper channel when he wishes to resign from the employment of PBL.

Or 3 (three) months’ basic salary in lieu thereof.

The Management may also ask to resign an employee giving him/her a 3 (Three) months’ notice or 3 months’ basic salary in lieu.

Any Partial or full waiver of notice period will be at the discretion of the Managing Director.


An employee shall be dismissed from the Bank’s service if he is found guilty of gross misconduct or whatsoever according to the reports of the Enquiry Committee. The concerned dismissed employee will get only the own contribution of his Provident Fund.

Exit Interview

An Exit Interview will be conducted by HR dept. at the time of employees’ separation from the Bank’s service. The Employee will be required to fill up prescribed “Exit Interview Form” and send to HR dept. for review prior to his/her release from the services of the Bank. In case of very efficient employee, sometimes Managing director takes an exit Interview.

3.2. TRAINING and Development Programs and Services

Probation period

Employees appointed from Junior Officer to Senior Officer Level shall be on probation normally for a period of 12 (Twelve) months. The probation period for the Management

Trainees will be for 1 (one) year from the date of joining.

During the probation period the new recruit’s suitability for the job will be appraised. This period will also provide the new employees the opportunity to appreciate whether the job is suitable for him/her. The probation period may be extended if the Management is of the opinion that additional training or time is required to review the performance of a new recruit.

During probation, the Management may terminate the employment at any time without notice. Similarly, an incumbent may terminate his/her employment with the Bank at any time during probation on intimation in writing to the Management.

Training procedure

Bank’s policy is to train and develop managers at all levels so that they contribute towards the organization’s growth and also enhance their own development. Development is seen as a joint responsibility of the individual and his/her manager.

Training needs will be identified and individuals during the Performance appraisal process and the employees will be nominated to various programs of the following types.

Induction (to orient the new entrant about the organization).

On the job training

Function based skill training

General Management Training

3.3. COMPENSATION Structure and Programs


Salaries are confidential between the employees concerned and the Management.

Employees joining against a post receive the salary as per the job level they join in. The employees who are on probation will be eligible to join the PF only after their confirmation. Management Trainee alone will receive a monthly consolidated salary during the probation period.

Promotions and transfers


Employees of PBL are got promoted under their achievement to the target fulfillment and the experience they have gathered from the Bank.

In the event of Promotion/Up- gradation to a higher Job Level, the employee receives an increase of minimum 10% over his/her previous basic salary and all other allowances applicable in the higher level. However, the promoted employee receives the minimum range of the level where he/she has been promoted.

In case the revised basic salary still remains below the starting scale of the new Job Level, the employee is then given the differential needed to place him/her at the starting basic salary of the new Job Level

Transfer Frequent Transfer of employee is very common Practice in PBL. The philosophy behind this practice is to keep the employee under control. If employees work in same environment with same colleagues and superiors, they might get habitual to make same mistake over time. This practice is also bar to the making union. Transfer need is assessed from the longevity of an employee over one place.

Transfer on Self Request Normally transfer on self request is discouraged. But such cases may be considered on merit basis with prior permission from the competent authority. In such cases, the employee concerned will have to bear all expenses for self and family members including transportation expenses of his/her personal belongings.

4.0. Responsibility at Premier Bank

Working experience


During three months of work experience with Premier Bank on- internship program, was placed in the Customer Service Department, Panthapath branch. The tenure was from 14th June 2011 to 14th September 2011.

As an intern of in Customer Service Department, have gathered an significant experience of handling customers. This program has helped to incorporate knowledge and skills learned during my different courses in the university and prior study experience with real life situation. This part of the project gives an overall idea about service provided to the customer by the Customer service department of premier bank.

Internship at Premier Bank:

The assigned to the project of “Measuring of Customer satisfaction procedures at Premier Bank how to improve it”. The working environment of Premier Bank is very conducive and friendly. The staffs are specialized in their respective fields. Each of them works at their own and there is supervision from the executive level. Executive always motivate the staff that help to intense their responsibility, commitment to work.

During these three months period my responsibilities included the following:

Receiving: The application form of an account opening/FDR.

Checking: The applicant provides, the documents, which are required of documentation to open an account, and I use to check the necessary documents.

Analyzing: The passport/Driving License/ Character Certificate provided along with the application according to the bank’s evaluation criteria.

Maintaining: Write the account number Man Index and double check the number with the index to see whether there is any duplication.

Preparing: KYC is prepared according to the information provided by the client. The KYC is six pages of necessary document, which is very necessary for the bank’s internal use only.

Other task areas

Delivering different types of forms regarding accounts and helping the customer to fill those forms. Providing account numbers to the customers.

Checking maturity time regarding the coupon or face value and receive them on behalf of customer service department. Deliver new purchase product Obtain a final commitment by setting a date & time for the next appointment.


It is personal observation that everyday a lot of customers come to us to solve their problem and the customer feel very confident if we can provide the prompt and right solution. Sometimes they get angry when we fail to solve their problem. So handling customers is a bit challenging and especially if the customer inquiries are through phone. had many things to learn in the last three month. Interaction with different levels of bank officials

Except from the usual works had interactions with the managers, officers and colleagues.

Interaction with the Managers

In last three months had attended in a training session and some lecturers were given by’ the managers. Beside this had informal discussions with the managers regarding my problem in handling customers, mistakes and also about my report. The managers were very much helpful regarding my problems and other situations.

Interaction with Colleague

Under the direction of managers, and officers of customer service department, colleagues and used to handle customer complaints and provide necessary solutions. The also selling products and was convincing enough to make them part of some scheme.

5.0 Finding

5.1 Customer Satisfaction

Banker Customer Relationship – legal Aspect

In order to discuss about the relationship between Banker and Customer , we must know who is a ‘Banker ‘ and who is a Customer and also what is the basis of relationship.

The Banker

The negotiable instrument Act 1881 states that the term banker includes persons, or a corporation, or a company acting as bankers. But this definition is not at all satisfactory one, because the does not state as to who can act as banker. According to Dr. H.L. Hart, A banker or bank is a person or company carrying on the business of receiving moneys, and collection drafts for customers subject to the obligation of honoring cheque drawn upon them from time to time by the customers to the extent of the amount available on their current accounts.

The Customer

The customer has not yet been statutorily defined .Commonly the term customer means a person who has an account with the bank. According to John Paget, to constitute a customer there must be some recognizable course or habit of dealing in the nature of regular baking business. It is difficult to reconcile to this view, a person does not become a customer simple by opening an account with the bank. He should be in the habit of dealing with the bank i.e. there should be some measure of continuity in his dealings with the bank.

Banker’s Right

Right to return deposit if not in proper manner & time.

Right to return the cheque if not drawn properly pr in time or for some other reason.

Right to debit customer’s A/c for any charges, interest, &commission if recoverable.

Right of lien, Right set off etc.

Customer’s Right

Right to deposit money in his A/c on time.

Right to demand repayment by issuing cheque or written order properly in proper time & place.

Right to get pass book/statement of account.

Right to stop payment of his cheque.

Right to give standing instruction.

Right to have secrecy of his account.

Right to have secrecy of his account.

Right to claim interest of his deposit balance in the interest bearing account.

Service quality is one of the important factors that influence customer satisfaction. Researchers and managers of service firms concur that service quality involves a comparison of expectations with performance. According to Lewis and Booms “Service quality is a measure of how well the service level delivered matches customer expectations. Delivering quality service means confirming to customer expectations on a consistent basis”.

So, by this diagram I have tried to show the 7 dimensions of service quality and they are reliability, responsiveness, assurance, empathy, tangibles, access and lastly courtesy. Based on these dimensions I have developed the questionnaire and tried to find out the present service quality that is perceived by the customer of the Premier Bank.

Quality of information

Particulars Percentage
Very poor 10%
Poor 12%
Good 30%
Excellent 20%
Total 100%

Premier Bank provides all kinds of assistance to their customers. Particularly they provide necessary information about various accounts, LC, foreign exchange and various products related for customer service. Besides giving this information they help their customer to get higher return of customer investment. Premier Bank tries to make secure the customers money and give them suggestion for how to utilize and get maximum return on their investment. From the above table we can identify that no of 42% respondents comments good about banking knowledge of Premier Bank staff engaged in providing customer services and no of 12%, 28% and 18% are according to poor, average & excellent result.

Quality of services

With in short span of time, being consumer market, Premier Bank had been able to establish its own standards of services. That’s why the bank was able to create its own image in the financial service sector. So that most of the customers are highly satisfies about their service. At present Premier Bank is considered to be one of the best service providers in the private banking sector. From the above table we see that respondent average comments are 46% about the quality of banking service of Premier Bank. Only 12% customer’s opinion about their service is not really change.

Time Duration of service:

Service rendered large depends on the aptness and efficiency of the bank staff. In this case the time taken to provide a specific service is important and for this Premier Bank has preset time criteria regarding service that they provide. They also have interdepartmental Service Level Agreement (SLA) within the bank. From this table we can see maximum respondent’s assumption about the time duration of services is 33%. Others are 19%, 29%, 14%, & 15% as well as less than one minute,

5.2 Employee Satisfaction

The Employee Satisfaction Survey is part of my intern report, and will be one of several measures used to indicate overall organizational performance. also will be collecting customer satisfaction data. Other future measures could include financial measures and process or transaction measures. There are three phases to the survey process, and this document describes in detail Phase where hold discussions with Premier Bank staff to inform them of the survey results and garner their input on ways to improve.

conduct a survey on our employee of our branch.

Total Employee: 10

Employee Return survey paper: 8

In survey result find that report.

Depth of content – Decide whether a full detailed description of the survey data or a shorter, more basic version is best for your unit. The PowerPoint presentation you receive will display the shorter version, but will have additional detail in slides behind the “Appendix” slide at the back. You must bring forward any additional slides that you want to be incorporated into your presentation

6.0 Recommendation

Considering the customer queries the following, recommendations are made, which will benefit both Premier Bank and its customers.

As I have seen that 11 am to l pm is the main rush hour; so necessary should be allocated in that time. So, proper allocation of manpower can improve the service quality.

As the account opening is the most frequent problem, so be trained in such a way so that they can solve all sorts of account opening related problem quickly.

The frequency of personal calls that falls under “others” category has a remarkable figure. have seen that the staff gets frequent calls of inquiry while other customers are standing in front of them. Now if service remains busy with/the personal affairs the proper service cannot be given.

Fee/Charges are a very irregular problem that can occur anytime. So the A/H should be informed about the new set of charges schedule and they should be given proper explanation of, why the charges have been increased or decreased.

Due to wrong information provided by the advertisement in newspapers misleads a customer, many people come to the bank to built a relationship with the bank, but when a staff give them the proper explanation of the statement that is given on the Advertisement, they become disheartened and leaves bank with a sad mind. This present state of mind of a customer can be very harmful for the company image. So proper product information can be a better solution in this situation.

Another very important thing from my personal observation is that one person calls for several times for the same problem, which increases the call frequency. Proper assurance and solution over phone can a better alternative to reduce extra calls.

Proper division of work can reduce the load of one staff to handle different queries. For example one of the staff is good at selling Premier Bank product, so he or she should be ­given the chance to deal with those customers who are willing to invest in Premier Bank product. But unfortunately, I have observed that this kind of potential staff gets busy in providing account balance and the bank loses an opportunity to get a new customer.

Proper monitoring the activities of the call center could be better solution for handling queries. So these are the recommendations made in considering the finding the first research.

7.0. Conclusion

Figure 2

During the three months Internship program at PBL Panthapath Branch, have observed almost all the desks more or less. This Internship program, in first, has been arranged for gaining knowledge of practical banking and to compare these practical experiences with theoretical knowledge. Comparing practical experiences with theoretical involves identification of weakness in the branch activities and making recommendations for solving the weakness identified.

In my internship program find that employee is key factor for achieving their mission and vision. Employee is directly related with customer so until them doing their actual job customer never be satisfied. So, human Resource Department should more motivation and employee retention for best output. Mainly customers are not really satisfied due to vacancy in midlevel in this branch. Though all departments and sections are covered in the internship program, it is not possible to go to the depth of each activities of branch because of time limitation and knowledge constrain. However, have given best effort to achieve the objectives the internship program.



1. Jack R. Meredith and Samuel J.Mantel, (2002). Project Management: A Managerial Approach,5th Edition, New York, USA:Jhon Wiley & Sons.

2. Keller K.L. (2004). Strategic Brand Management. New Jersy: Person Education, Inc.

3. Sarker, L.R. (1997). Credit Management

4. Zikmund, W.G (2003). Business Research Methods, USA:South-Western.

5. Murray, R.Spiegel, & Larry J. Stephens.(1999). Theory and Problems of Statistics, 3rd Edition, McGraw-Hill.


1: Mr. Taiab Ali Khan. AVP & Manager, Premier Bank, Panthapath Branch

2. Mr. Bokshi Mamun, Sr. Officer, Premier Bank, Panthapath Branch

Other Publications

Brochures and Publications of Premier Bank Ltd.

Credit Card Brochures and pricing guides of different issuers.

Credit Manuals of BIBM

Brochures and publications of Premier Bank Ltd.

Websites (URLs)