Customer Satisfaction of Banking Service A study on Jamuna Bank Limited

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“Customer Satisfaction of Banking Service A study on Jamuna Bank Limited”

1.1 Objective of the report:

Objective of the report is divided by two major points. They are-

1.1.1 Primary Objective: The primary objective of report is to identify or measure the satisfaction level of customer of Jamuna Bank.

1.3.2 Specific Objective: In the following statements the specific objective is given below-

1. To identify the customer perception and expectations regarding the delivery of service of Jamuna Bank Limited.

2. To measure the satisfactory perception of customers if they are satisfied or not.

3. To evaluate the service of Jamuna Bank Limited by identifying the customer satisfaction.

4. To find out the possible solution to eliminate the problem.

1.1.2 Data Sources: The factual data has been used by using primary and secondary sources. This two types of sources are given below-

1.1.2.1 Primary Sources: The primary sources are-

· It has been taken a formal interview by virtue of questionnaire.

· Experience gathered by working in different departments of the bank.

· Personal Observation

1.4.1.2 Secondary Sources:

· Brochure of JBL.

· Internet searching.

· Leaflet.

· Website addresses (WWW.Jamunabankbd.com).

· Different publications regarding banking function. of JBL.

1.1.3 Methods of Data Collection:

The primary data for the research has been collected through questionnaire survey related to the research problem. The questionnaires were administered through personal interview. The secondary data was collected from reports published by the bank, web sites and books.

1.1.4 Nature of Questionnaire:

The questionnaire contained both close and open-ended questions. The questionnaire has been sorted into three parts. The first part was designed to collect the demographic information of the customers. The second part is associated with the types of services taken by the customers and reason to switch the previous bank. The last part of the questionnaire included questions specific to dimensions of the service quality of the bank

1.4.4 Technique of Scaling:

Five-point Likert scale (1 for strongly disagree to 5 for strongly agree) has been used to measure the customer perceptions regarding the service quality. Cross tabulation method has been used to find out the relations between demography and satisfaction.

1.4.5 Sample Plan:

The sample plan covers target population, sampling technique and sample size. These are the followings.

1.4.5.1 Target Population:

The target population was the customers of the Principal branch, Sonargaon Road Branch, Dhanmondi Branch, Motijheel & Dilkhusha Branch of Jamuna Bank Limited.

1.4.5.2 Sampling Technique:

The Non-Probability Convenience sampling technique was used to collect the desired data for the research.

1.4.5.3 Sample Size:

The sample of the research was 50.

1.2 Data Collection:

The data collection procedure for the survey took one and half of a month. The data was collected from the customer of the bank through the survey questionnaire.

1.3 Statistical Tool:

Followed the following steps to prepare the report:

· Defined the problem ( Assigned by Supervisor)

· Planning the research design.

· Planned the sample.

· Gathered the data.

· Processed and analyzed the data.

Formulated, concluded and prepared the report.

1.4 Research Limitation:

To make this report faced a lot of limitations. Despite the diligent efforts given in preparing the report, it succeeded only to skim through the surface of the ocean on this subject. Therefore the views expressed in this report are likely to be restricted by limitations. A number of limitations are associated while preparing the report. They are summarized below –

· Unavailability of data: Some vital information would have made this report more fruitful. But as those data were confidential in nature, it was not provide by the authority.

· Deficiency in Sample size: Because of time and cost constraint it is not possible to conduct large number of borrowers for making more constructive.

· Lack of interest: Customers are less interested to complete the questionnaire. Most of the customers were not interested to fill up the questionnaire.

1.8 List of Acronyms:

2.1 History of the Jamuna Bank:

Jamuna Bank Limited (JBL) is a banking company registered under the companies Act, 1994 with its Head Office at Chini Shilpa Bhaban, 3 Dilkusha C/A, Dhaka-1000. The Bank started its operation from 3^rd June 2001.

The Bank undertakes all types of banking transactions to support the development of trade and commerce of the country. JBL’s services are also available for the entrepreneurs to set up new ventures of industrial units. Jamuna Bank Ltd the only Bengali named new generation private commercial bank was established by a group of winning local entrepreneurs conceiving an idea was creating a model banking institution with different outlook to offer the valued customers, a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity. The sponsors are reputed personalities in the field of trade, commerce and industries

The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking. The Management of the bank constantly focuses on understanding and anticipating customers needs. The scenario of banking business is changing day by day, so the banks responsibility is to device strategy and new products to cope with the changing environment. Jamuna Bank Limited has already achieved tremendous progress within only eight years. The Bank has already ranked as one of top quality service providers and is known for its reputation.

At present the bank has real time centralized Online banking branches ( Urban and Rural) throughout the Country having smart IT-Backbone. Besides these traditional delivery points, the bank has ATM card of its own, sharing with other partner banks and Consortium the country.

The operation hour of the bank is 10.00 A.M. To 6:00P.M. from Sunday to Thursday with transaction hour from 10.00 A.M. To 4.00. The Bank remains closed on Friday including governments holidays.

The scenario of banking business is changing day by day, so the bank’s responsibility is to devise strategy and new products to cope with the changing environment. JBL has already achieved tremendous progress within only Seven years. The bank has already ranked at top of the quality service providers & is known for its reputation.

JBL is now trying to widen its periphery by targeting all the potential sectors. With an extensive range of financial products and services day by day the bank is committed to provide high quality financial services/products to contribute to the growth of GDP of the country through stimulating trade & commerce, accelerating the pace of industrialization, boosting up export, creating employment opportunity for the educated youth, poverty alleviation, raising standard of living of limited income group and over all sustainable socio–economic development of the country.

2.2 Organization Structure of Jamuna Bank:

2.3 Mission Vision and Objective:

Mission of Jamuna Bank:

The bank committed to satisfying diverse needs of its customers through an array of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work-force.

(Source:http://www.jamunabankbd.com/profile/mission.htm)

Vision of Jamuna Bank:

To become a leading banking institution and to play a pivotal role in the development of the country and service so that sustainable growths, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work-force.

(Source: http://www.jamunabankbd.com/profile/mission.htm)

Objectives of JBL:

• The following objectives are set for JBL:
• To earn and maintain CAMEL Rating “Strong”.
• To establish relationship banking and improve service quality through development of Strategic Marketing Plans.
• To remain one of the best banks in Bangladesh in terms of profitability and assets quality.
• To introduce fully automated systems through integration of information technology.
• To ensure an adequate rate of return on investment.
• To ensure optimum utilization of all available resources.
• To pursue an effective system of management by ensuring compliance to ethical norms, transparency and accountability at all levels.

(Source: http://www.jamunabankbd.com/profile/objectives.htm)

Strategies of JBL:

• To raise the Paid–up Capital and Statutory Reserve Fund i.e. Regulatory Capital up to Tk.2000.00 million by June, 2009
• To manage and operate 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 identify customers’ credit and other banking needs and monitor their perception towards our performance in meeting those requirements.
• To review and update policies, procedures and practices to enhance the ability to extend better service to customers.
• To train and develop all employees and provide them adequate resources so that customers’ needs can be reasonably addressed.
• To promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to employees in a timely fashion.
• 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

(Source: http://www.jamunabankbd.com/profile/strategies.htm)

Corporate Culture:

Employees of JBL share certain common values that help to create a JBL Corporate culture.

· The client comes first.

· Search for professional excellence.

· Openness to new ideas and new methods to encourage creativity.

· Quick but proper decision making.

· Flexibility and prompt response.

A sense of professional ethics(Source: (Source:http://www.jamunabankbd.com/profile/culture.htm)

Corporate Slogan:

“Your Partner for Growth”

(Source: http://www.jamunabankbd.com/profile/culture.htm)

Corporate Governance:

The organizational structure and corporate governance of JBL reflect the determination to establish, sustain and increase its strength for a strong base as a customer–oriented bank with a transparent management..

(Source: http://www.jamunabankbd.com/profile/culture.htm)

Board of Directors:

The Board of Directors is the supreme body of the Bank. The Board of Directors consists of 16(Sixteen) members, out of which 13(thirteen) members are elected from the shareholders and the remaining member is the Managing Director who is appointed as the Chief Executive Officer of the Bank.

(Source:http://www.jamunabankbd.com/profile/Director%20Related%20Information.pdf)

Branches and Employees of Jamuna Bank Limited:

As far the Bank has established as many as 39(thirty nine) Branches throughout the country and made online network among those Branches. This information is collected from the report “Credit Risk Management of Jamuna Bank Limited”. Jamuna Bank Limited has 805 (Eight Hundred Five) employees.

Table: Branches of Jamuna Bank Limited

Divisions of JBL Head Office:

In order to perform the operations of the Bank properly in an organized means and ways the Head Office of the Bank has been segmented in different Divisions.

The Head Office Divisions of the Bank are as follows :

2.4 Service/Product of the company:

(Source:http://www.jamunabankbd.com/profile/product.htm)

Corporate Banking:

The motto of JBL’s Corporate Banking is to provide personalized solutions to their customers. The Bank distinguishes and identifies corporate customers need and designs tailored solutions accordingly.

Jamuna Bank Limited offers a complete range of advisory, financing and operational services to its corporate client groups combining trade, treasury, investment and transactional banking activities in one package. Whether it is project finance, term loam, import or export deal, a working capital requirement or a forward cover for a foreign currency transaction, their Corporate Banking Managers will offer us the accurate solution. Their Corporate Banking specialists will high class service for speedy approvals and efficient processing to satisfy customers needs.

Corporate Banking business envelopes a broad range of business and industries. They can leverage on our know-how in the following sectors mainly:

· Agro Processing Industry

· Industry ( Import Substitute/ Export Oriented)

1. Textile Spinning Dyeing/Printing

2. Export Oriented Garments, Sweater

3. Food & Allied

4. Paper & paper products

5. Engineering, Steel Mills

6. Chemical Products

· Telecommunications

· Information Technology

· Real Estate & Construction

· Wholesale Trade

· Transport Hotels, Restaurant

· Non Bank Financial Institutions

· Loan Syndication

· Project Finance

· Export Finance

· Import Finance

Personal Banking:

Personal Banking Division (PBD) introducers to the customers with a variety of products. Their PBD continuously meets the challenges of developing new products and services to match the specific requirements of customers.

Personal Banking Division (PBD) issues both VISA Debit Card and VISA Credit Card. VISA is the renowned card brand in the earth. Jamuna Bank is a principal member of VISA worldwide. Remittance sell is another successful wing of the Personal Banking Division. Their product range includes:

Visa Debit Card: Anyone can now avail the convenience of VISA Debit Card. It is the easiest and the most secured way of utilizing clients more for 24/7 retail purchases as well as cash withdrawal.

Visa Credit Card: The JBL Credit Card gives us a fast, convenient and reliable way to pay, 24 hours a day, wherever we are in the world.

VISA Classic

VISA Gold

International Credit Card– JBL International Credit Cards (VISA) allows us flexibility and convenience when we travel internationally. The VISA International card entitles us to exclusive discounts worldwide

VISA Dual (Gold)

JBL Remittance Cell – “Remit Fast” is the motto of JBL Remittance Cell. It provides the best & fAster service to its customers and connects the world through the renowned money exchange agencies, Such as Placid NK Corporation, Money gram Payment System Inc, Raffles Exchange Ltd UK, Homelink Remit (UK) Ltd, Rumana Money Services. Customers can avail improved pricing on remittance.

Bank Transfer

Instant Cash

Spot Cash

To offer their customers a greater banking convenience, they have introduced many modern banking facilities and some are under developments that include:

With their large ATM network including non-branch ATM across the country they have the privilege of round the clock withdrawal and other account services at their convenience. Customer can enjoy higher ATM withdrawal limit each day.

No fees on retail purchase and can use their Credit Cards at thousands of retail outlets around the world. There will be no commission charge on the endorsement of foreign currency for self and spouse.

Their customer service agents are available on 365 days to offer assistance for us. Just connects to their agents and satisfy their banking needs anytime of a day or any query that we might have.

International Trade:

International trade forms the major business activity undertaken by Jamuna Bank Limited. The Bank with its worldwide correspondent network and close relationships with key financial institutions provides and expensive trade services network to handle their transactions efficiently. Their key branches in Dhaka, Chattagong, Sylhet and Naogaon are staffed by personnel experienced in International Trade Finance. These offices are the focal point for processing Import and Export transaction for both small and large corporate customers. They offer a complete range of Trade Finance Services. Their professionals will work with us to develop solutions tailored to meet our requirements, through mobilizing out full rage of trade services locally, and drawing on our global resources. They can offer us professional advice on all aspects of International Trade requirements namely:

• Issuing advising and confirming of Documentary Credits
• Pre-shipments and post-shipments finance
• Negotiation and purchase of Export Bills
• Discounting of Bills of Exchange
• Collection of Bills, Assists customers to insure all risks.
• Foreign Currency Dealing etc

List of Foreign Correspondents:

To provide international trade related services they have established Correspondents Banking relationship with 336 location of 106 world reputed Banks in more than 100 countries.

Their main Correspondent Banks are:

1. City Bank NA

2. Standard Chartered Bank

3. American Express Bank

4. Bank of New York

5. Bank of Nova Scotia

6. Duetche Bank

7. Dresdner Bank AG

8. Habib American Bank

9. Habib Bank AG Zurich

10. Bayerische Hypo Vareins Banks

11. Mashreq Bank PSC

12. Nordea Bank AB

13. Royal Bank of Canada

14. UBS AG

15. Union De Banques Arabes ET

16. Francaises

17. Wachovia Bank NA

18. Forties Bank S.A/NV

19. Bank of Ceylon

20. Banca Toscana

21. ABN Amro Bank

22. Commonwealth Bank of Australia

23. Danske Bank A/S

24. Agricultural Bank of China

25. Banca Intesa SPA

26. Banca Italo Albanese

27. Bank Popolare Commercio E Industria SPA

28. Bank Austria Credittanstal AG

29. Bank Commonwealth

30. Bank of Cyprus

31. Bank of Bahrain and Kuwait

32. Bank of Jordan Ltd

33. Bank Sadarat Iran

34. Blue Nile Bank

35. Commercial Bank of Kuwait

36. Commercial Bank of Qatar Ltd

37. Development Bank of Philippines

38. Dexia bank SA

39. EON bank Berhad

40. First International Merchant Bank PLC

41. Foreign Trade bank of North Korea

42. Foreign Trade Bank of Vietnam

43. Hiroshima Bank

44. Hungary RT

45. ICICI Bank Canada

46. Industrial and Commercial Bank of China

47. ING Bank NV

48. Islamic Bank of Yemen and for Finance

49. Korea Exchange Bank

50. National Commercial Bank

51. Shinhan Bank

52. State Bank of India

53. United Bank of India

54. Bank of Bhutan

55. Allied Bank Philippines

Foreign Remittance:

Jamuna Bank Ltd has a network of 19 branches in Bangladesh and four more branches are going to be added to network soon. Remittance services are available at all branches and foreign remittances may be sent to any branch by the remitters favoring their beneficiaries. Remittances are credited to the account of beneficiaries instantly through Electronic Fund Transfer (EFT) mechanism or within shortest possible time.

Jamuna Bank Ltd has correspondent banking relationship with all major banks located in almost all the countries/cities. Expatriate Bangladeshis may send their hard earned foreign currencies through those banks or may contact any renowned banks nearby (where they reside/work) to send their money to their dear ones in Bangladesh.

To facilitate sending money in Bangladesh Taka directly, Jamuna Bank Ltd has Taka Drawing Arrangement with many banks/exchange companies in different countries. The expatriate Bangladeshis may send their money in BDT through the branches/subsidiaries of Jamuna Bank Ltd.

As usual the product and service mix of a Bank can be segmented in 03(three) broad categories. They are given below-

A. Deposit Related Products and Service

B. Credit Related Products and Service

C. Electronic Related Products and Service

Money Transfer:

Joining with one of the world renowned money transfer service “Money Gram”, JBL has introduced its customers to the faster track of remittance. Now JBL can bring money in Bangladesh from any other part of the globe in safer and faster means than ever before.

Corporate Banking Service:

JBL offers a complete range of advisory, financing and operational services to its corporate client groups combining trade, treasury, investment and transactional banking activities in one package. Its corporate Banking specialists will render high class service for speedy approvals and efficient processing to satisfy customer needs. Corporate Banking business envelops a broad range of businesses and industries. Customers can leverage on JBL’s know–how in the following sectors mainly:

Source: Credit Risk Management of Jamuna Bank Limited

http://www.jamunabankbd.com/profile/Corporate Banking.htm)

2.5 Market National and International:

Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its Head Office at Chini Shilpa Bhaban, 3, Dilkusha C/A, Dhaka-1000. The Bank started its operation from 3rd June 2001.

The Bank undertakes all types of Banking transactions to support the development of trade and commerce of the country. JBL’s services are also available for the entrepreneurs to set up new ventures and BMRE of industrial units. Jamuna Bank Ltd., the only Bengali named new generation private commercial bank was established by a group of winning local entrepreneurs conceiving an idea of creating a model banking institution with different outlook to offer the valued customers, a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity. The sponsors are reputed personalities in the filed of trade, commerce and industries.

The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking. The Management of the bank constantly focuses on understanding and anticipating customers needs. The scenario of banking business is changing day by day, so the bank’s responsibility is to device strategy and new products to cope with the changing environment. Jamuna Bank Ltd. has already achieved tremendous progress within only eight years. The bank has already ranked as one of top quality service providers & is known for its reputation.

At present the Bank has real-time centralized Online banking branches (Urban & Rural) throughout the Country having smart IT-Backbone. Besides these traditional delivery point, the bank has ATM of its own, sharing with other partner banks & Consortium throughout the Country.

http://www.firstglobalselect.com/scripts/cgiip.wsc/globalone/htm/quote_and_news.r?pisharetype-id=31465

“Jamuna Bank, a leading private commercial bank has been playing vital role in treasury operations of the country’s banking arena. The bank is equipped with a very sophisticated treasury rooms and a number of talent young dealers who contributed nearly 40 per cent of its profits which was recorded Tk 2.54 billion in 2010, compared to Tk 2.02 billion in 2009,” the bank said in a statement.

Terming the central bank recognition as an ‘encouragement toward further improvement’, Mirza Elias Uddin Ahmed, Senior Executive Vice President and Head of Treasury of Jamuna Bank Ltd said this is the first recognition for the primary dealers in Bangladesh who are trying to develop a sound, efficient and vibrant secondary market for government securities.

Currently 12 banks and 2 financial institutions have primary dealership and have formed association named as primary dealers Bangladesh limited (PDBL). The other PDs are Sonali Bank, Janata Bank, Agrani Bank, Jamuna Bank, NCC Bank, Prime Bank, National Bank, Uttara Bank, Southeast Bank, Mutual Trust Bank, AB Bank, Mercantile Bank, Lanka Bangla Finance and Industrial Promotion and Development Corporation(IPDC).

Bangladesh Bank has selected NCC Bank as the second best primary dealer in Bangladesh while other banks and FIs failed to meet the requirements during the period.

“Today’s treasury environment is more challenging than ever. But Jamuna Bank could overcome the difficulties due to prudent guidance of our managing director who is also expert in crucial fund management, said Elias Uddin Ahmed, who is also the former chairman of PDBL Technical Committee and Secretary General of Bangladesh Money Market Dealers’ Association (BAMDA).

“If the central bank extends its policy supports to us, we would very soon develop a secondary market for government securities and bonds which would excelerate the development activities of the country”, he said.

Jamuna Bank started its journey in 2001 with a paid up capital of Tk 400 million and obtained primary dealership in 2003. Excellent management performance, prudent credit policy and higher returns of quality assets helped the bank to stand on a sound financial footing. In 2009, the bank declared 23.50% dividend to its shareholders while its capital shot up to Tk 1.62 billion.

Primary dealers are market maker of government securities and able to make business deals with the Bangladesh Bank. They purchase the majority of treasuries at auction and then redistribute them to their clients, creating the initial market in the process. Such dealers must meet certain liquidity and quality requirements.

Primary dealer systems are present in many countries including India, Malaysia, Canada, France, Italy, Spain, the United Kingdom, and the United States. Many former employees of primary dealers work at the Treasury, because of their expertise in the government debt markets.

Source: http://www.thefinancialexpress-bd.com/more.php?news_id=127975

2.6 Performance Over the Year: In the following statements the previous three years performance is given below:

2.7 Analysis of Performance of the Company: The analysis of Jamuna Bank Limited is given below:

Source: Credit Risk Management of Jamuna Bank Limited

2.8 Analysis of Strengths and Weakness(SW) of the Company:

SW Analysis of Jamuna Bank Limited: In the following statements the SWOT analysis are given below:-

1. Sound profitability and growth with good internal capital generation.

2. Larger corporate client base.

3. Experienced and efficient management team and human resource.

4. Quality product and services.

5. Better infrastructure facilities

6. Company reputation and goodwill.

1. Small market share.

2. Limited branch network.

3. High concentration on fixed deposits and large scale loans.

4. Lack of full scale automation.

2.9 Find Out the Opportunity and Threats of the Company:

In the following statements the Opportunity and Threats of the Jamuna Bank Limited is given below-

1. Scope of market penetration through diversified products.

2. Automation of transaction processes and online branch banking.

3. Government’s policy of encouraging heavy inflow of foreign investment.

4. Regulatory environment favoring private sector development.

5. Value addition in products and services,

6. Increasing purchasing power of people.

7.Increasing trend in international business.

8. It is a great phenomenon is that Shahjalal Islami Bank Limited goes ahead in future and they done their corporate social responsibility.

1. Increased competition for market share in the industry.

2. Frequent changes of banking rules by the Central Bank.

3. Market pressure for lowering of lending rate.

4. National and global political unrest.

5. Default culture of credit.

2.10 Specific strategies to improve the organizational effectiveness:

In the following statements the strategies are given below-

1. To manage and operate the bank (JBL) in the most efficient manner to enhance financial performance and to control cost of fund.

2. To strive for customer satisfaction through quality control and delivery of timely services.

3. To identify customers credit and others banking needs and monitor their perception towards our performance in meeting those requirements.

4. To review and update, policies, procedures and practices to enhance the ability to