An Exploratory Study on Retail Lending and Customer Satisfaction Level of Retail Finance Centre, City Bank Limited.

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An Exploratory Study on Retail Lending and Customer Satisfaction Level of Retail Finance Centre, City Bank Limited.

Company Profile

Until the beginning of the eighties, the banking business in Bangladesh was only restricted to the nationalized sector in addition to two or three foreign banks. It is only in 1983 that the Government changed its policy on the banking sector paving the way for setting up new banks with private sector. In fact, 1983 saw the emergence of a bevy of local banks with private entrepreneurship of which the City Bank Limited stands out prominently. It came on stream on the 27th March.

City Bank Limited is one of the first private Banks in Bangladesh. The Bank has been operating since 1983 with an authorized capital of TK. 1.75 Billion under the entrepreneurship of twelve prominent and leading businessman of the country. The noble intention behind starting this Bank was to bring about qualitative changes in the sphere of Banking and Financial management. Today City Bank Limited serves its customers at home and abroad with 83 branches spread over the country and about three hundred overseas correspondences covering all the major cities and business centres of the world.

City Bank is among the very few local banks which do not follow the traditional, decentralized, geographically managed, branch based business or profit model. Instead the bank manages its business and operation vertically from the head office through 4 distinct business divisions namely:

1. Corporate & Investment Banking;

2. Retail Banking (including Cards);

3. SME Banking; &

4. Treasury & Market Risks.

Under a real-time online banking platform, these 4 business divisions are supported at the back by a robust service delivery or operations setup and also a smart IT Backbone. Such centralized business segment based business & operating model ensure specialized treatment and services to the bank’s different customer segments.

The bank currently has 83 online branches spread across the length & breadth of the country that include a fully fledged Islami Banking branch. Besides these traditional delivery points, the bank is also very active in the alternative delivery area. It currently has 25 ATMs of its own; and ATM sharing arrangement with a partner bank that has 225 ATMs in place; SMS Banking; Interest Banking and so on. Soon its Customer Call Center is going to start operation. The bank has a plan to end the current year with 50 own ATMs.

City Bank is the first bank in Bangladesh to have issued Dual Currency Credit Card. The bank is a principal member of VISA international and it issues both Local Currency (Taka) & Foreign Currency (US Dollar) card limits in a single plastic. VISA Debit Card is another popular product which the bank is pushing hard in order to ease out the queues at the branch created by its astounding base of some 400,000 retail customers. The launch of VISA Prepaid Card for the travel sector is currently underway.

City Bank prides itself in offering a very personalized and friendly customer service. It has in place a customized service excellence model called GAP (Graceful-Appropriate-Pleasing) that focuses on ensuring happy customers through setting benchmarks for the bank’s employees’ attitude, behavior, readiness level, accuracy and timelines of service quality.

City Bank is one of the largest corporate banks in the country with a current business model that heavily encourages and supports the growth of the bank in Retail and SME Banking. The bank is very much on its way to opening many independent SME centers across the country within a short time. The bank is also very active in the workers’ foreign remittance business. It has strong tie-ups with major exchange companies in the Middle East, Europe, Far East & USA, from where thousands of individual remittances come to the country every month for disbursements through the bank’s large network of 83 online branches.

The present senior management leaders of the bank consist of mostly people form the multinational banks with superior management skills and knowledge in their respective “specialized” areas. The bank this year, is celebrating its 25th year of journey with the clear ambition of becoming the no.1 private commercial bank in the country in 3 years time. The newly launched logo and the pay-off line of the bank are just one initial step towards reaching that point.

City Bank Limited has so far been highly successful in keeping its clients satisfied with its high quality service, while counting its expansion to reach more people around the country. City Bank Limited conducts all types of commercial banking activities. It is involved in most of the areas of commercial banking operations. The core business of the bank comprises of trade finance, term finance, working capital finance and corporate finance. City Bank Limited has acted as the lead arrange in raising term loan for a number of projects under syndicated finance and also participated in some cases under such financing arrangement. The bank is also providing personal credit, services related to local and foreign remittances and several other products. The “Consumer Credit” scheme of the bank, which is designed to help the fixed income group in raising standard of living is competitively priced and has been widely appreciated by the customers. City Bank Limited’s program under “Poverty Alleviation Scheme” delivered through rural branches in the form of micro credit is playing an important role towards socio economic development of the poor people in the rural areas.

The managements of the bank is determined to maintain and update the quality of these resources through continuous training and upgrading technology to keep pace with market demands, new developments and practices of the competitors. City Bank Limited entered the market at a time when economic policy environment of the country is balanced for higher levels of business activities and growth. The prevailing macroeconomic management and the government’s determination to carry on reforms in the banking sector provide a supporting and encouraging environment.

Philosophy behind New Logo

The City Bank Limited changed its logo along with a brand philosophy line or pay-off line with a ceremony held at Radission Water Garden Hotel, Dhaka on 5 July 2008. Honorable Advisor to the Ministry of Finance and Planning, Dr. A. B. Mirza Azizul Islam did this honor to the bank by launching it. The philosophy that went behind the creation of this logo is given below.

It is a simple logo. Its beauty is in its simplicity of arrangement which is also bold. As it is simple, it connects with people easily.

The shape may mean a chess board. Chessboard stands for wisdom and vision. Since the bank is 25 years old, it is expert, wise and experienced. Chess is the game of the smart people who knows all the moves. The game of the bank is to deal with people’s money matters and as wise and experienced, the bank is expert in that.

It may also mean something dynamic. It may mean the checkered flag of Formula One Racing. Then it Signifies speed, agility and pace.

The red and silver shape may also mean a kite. It’s a beautiful colorful kite. Nose up, going to reach for the sky. In the case, it means the bank is soaring high into the skies of many possibilities in order to make customers’ financial dreams come true.

The red and silver shape may also mean it’s a flying chessboard. It’s a chess-board that has taken wings and is flying. In that case it indicates to what extent this bank can go to serve customers better. The logo has a dynamic shape. Such dynamism stands for modernity, the 21 century. That signifies a techno-savvy bank, a state-of-the-art tech-powered modern bank. The color ‘red’ stands for emotion, passion, strength, vitality, action, confidence and courage. The color silver symbolizes riches, just as gold does. Silver is glamorous and distinguished. Silver is the traditional 25 anniversary color or Silver jubilee color. Another thing is that the “Pieces of silver” means money or coin. Now the pay- off line is “Making Sense of Money.”

No money, no bank. Money is important for all. Money is a need all by itself. It is the most precious thing. Money is the port key to any destination. It is everything between a person and his or her dreams and hopes. So, the money, which is almost synonymous of life, must make sense. For people’s money to make sense, it must be handled by an expert. That is where The City Bank Limited came in. The bank states, it makes sense of money, because, it has wise men of banking. With 25 years of experience, it knows how to make people’s money more meaningful for them, how to lend them money in times of their needs or how to grow their money safely for them.

Vision, Mission and Objectives

Corporate Vision

· To be the leading bank in the country with best practices and highest social commitment.

· Corporate Mission

· To contribute to the socio economic development of the country.

· To attain highest level of customer satisfaction through extension of services by dedicated and motivated team of professional team of professionals.

· To maintain continuous growth of market share ensuring quality.

· To maximize bank’s profits by ensuring its steady growth.

· To maintain the high moral and ethical standards.

· To ensure participative management system and empowerment of Human Resources.

· To nurture and enabling environment where innovativeness and performance is rewarded.

Corporate Objectives

The City Bank’s objectives are reflected in the following areas:

· Highly personalized service.

· Customer-driven focus.

· Total commitment to quality.

· Contribute in the economy.

· Quality of human resources.

· Commitment to its clients at each level.

The company believes that communication with, and feedbacks from its clients help it achieve its goal of providing world-class products and services. The City Bank Ltd regularly conducts client satisfaction surveys and make immediate accommodations and adjustments where needed. It also constantly monitors its standards, and strives to meet clients’ requirements.

Operational Network

Function and Operation

The bank has by now a network of 83 branches strategically located in different cities. All the branches are functioning in computerized environment and integrated through Wide Area Network (WAN). This interconnected system is functionalized with Oracle based software called Finacle. The branches are full-fledged units and can provide all commercial and investment banking services ranging from small and medium enterprises to big business conglomerates and houses.

The bank always tries to reduce its dependence on interest earnings by giving more emphasis on the fee-based income through introduction of capital market operation and Leasing. The Capital Market operation includes Portfolio Management, Investors Account, Underwriting, Mutual Fund Management etc.

The bank introduced modern system of Leasing Operation as in practice with Banks in all other countries of the world. The Lease Finance portfolio of the bank is the first of its kind in a Commercial Bank in Bangladesh. Entrepreneurship Development Training is arranged to impart operational skill and modern technique of management to introduce new entrepreneurs in the field of industrialization on the basis of participatory finance.

City Bank Limited is one of first few Bangladeshi Banks who have become member of SWIFT (Society for Worldwide Inter-Bank Financial Telecommunication). SWIFT is a member owned co-operative, which provides a fast and accurate communication network for financial transactions such as letter of Credit, Fund transfer etc.

City Bank Limited is operating branches on both interest based Banking and Islamic Sariah based Banking. The Islamic Sariah based Banking is completely different from the conventional one. The bank is Maintaining separate set of accounts for Islamic Banking branch (1 branch which is situated beside the Dhaka Stock Exchange) according to the standard adopted by Financial Accounting and Auditing organization for Islamic Financial Institution.

Management of City Bank Limited

Boards of directors are the sole authority to take decision about the affairs of the business. Now there are 13 directors in the management of the bank. All the directors have good academic background and have huge experience in business. Mr. Aziz Al-Kaiser is the chairman of the bank. The board of directors holds meetings on a regular basis. There are different committees in the bank for the efficient management of the bank.

Board of Directors

Policy Committee: This committee deals with any policy matters related to the banks new products, new business development and any sort of policy related to City Bank Limited. It seats fortnightly.

Executive Committee: It seats on monthly basis.

Credit Committee. All these committees meet on a regular basis for discussing various issues and proposals submitted for decisions.

Departments of City Bank Limited

The bank organizes all the jobs considering their interrelationship and they are allocated in a particular department to control the system effectively. The departments are fitted for the particular works and the performance of a particular department is measured perfectly. City Bank Limited has following departments

Table 2?1 Departments

Human Resources DivisionFinance DivisionAudit and Inspection DivisionInternal Control and ComplianceMarketing Division

Corporate Banking

Consumer Banking


Trade Service and Correspondent Banking

Logistic and SupportInformation TechnologyRetail Finance CenterCredit DivisionSME

Credit Admin and Monitoring

Corporate Affairs

Card Division

Recovery and Legal

SWOT Analysis of City Bank Limited

Every organization is composed of some internal strengths and weaknesses and also has some external opportunities and threats in its whole life cycle. This following will briefly introduce the customer to City Bank Limited’s internal strengths and weaknesses, and external opportunities and threats.

Table 2?2 SWOT Analysis

Strengths1. Stable source of fund2. Strong Liquidity position3. Concentrated market4. Wide network of branches

5. Well-furnished and Air-conditioned

6. Experienced top management

7. Diversified product line

8. Satisfactory IT infrastructure

Weaknesses1. Problem in Delivery2. Relatively high overhead expense3. Long-term credit is not sufficient4. Small market shares in Banking-business

5. Employees from sources (Branch & DST) have limited experience and not enough trained

6. Deposit is lower than advance

Opportunities1. Regularity environment favoring2. Private sector development3. Credit card business4. SME and Agro based industry loan

5. Can increase the advertising of the Bank

6. Has introduced three short term new schemes known as “City Onayash”, “City Ichapuron”, “City Notun Projonmo”

7. Recently launched two new loan products-“City Solution” and “City Drive”

Newly launched AMEX Card.

Threats1. Deposit as well as quality assets2. Market pressure for lowering the interest rate3. Shrinkage in export, import and guarantee4. Business due to economic slump and war

5. Banking activities of Competitors

6. Govt. pressures to reduce interest rate

7. New rules and regulations imposed by Bangladesh Bank

Values Considered as Guiding Factors

All the activities and decisions of The City Bank Limited are based on, and guided by, these values:

Placing the interesting of clients and customers first.

A continuous quest for quality in everything the company does.

Treating everyone with respect and dignity.

Conduct that reflects the highest standards of integrity

Teamwork – from the smallest unit to the enterprise as a whole

Being good citizens in the communities, in which they live and work.

The Products and Services

The City Bank Limited launched several financial products and services since it’s inception.

Table 2?3 Product and Services

Liability Product Asset Product
Contributory saving schemeMonitory Benefit SchemeSpecial Deposit SchemeEducation Saving SchemeMarriage Saving Scheme

Fixed Deposit

Saving Deposit Account

STD Account

Current Deposit Account

CITY BANK LIMITED-Insured Fixed Deposit

Monthly Savings Account

Multi Currency Account

Foreign Currency Deposit Account

Non Resident Taka Account

Non Resident Foreign Currency Account

Non Residents Investors Account

Consumer Credit schemeLease FinanceCash Credit (Hypo)Cash Credit (Pledge)Team Loan

House Building Finance



Transport Loan




Adv. Against Cash Incentive

Demand Loan

Export Development Fund

Small and Medium Enterprise

Monthly Saving Scheme (DG+): The prime objective of this scheme is to encourage people to build up a habit of saving. On this scheme, one can save a fixed amount of money every month and receive substantial lump sum of money after three or five years.

Monthly Benefit Scheme (MB+): MB+ is a five (05) years scheme that lets Deposits earn monthly benefit of Tk. 850 or its multiple by minimum initial deposit of Tk. 100,000 or its multiple and after maturity depositors will get refund of his/her principle amount.

Bounce Saving Scheme: A Saving Account with a minimum balance of Tk. 50,000 will attract not only the usual savings interest but a further 10% bonus on interest. Education Saving Scheme: It is a service oriented saving scheme. Monthly Tk. 200/-, 1000/-, 1500/-, 2000/-, and 2500/- can be deposited under this scheme for 7 (savan) years. Any 25-50 years old Bangladeshi citizen of sound health is eligible for opening such account for the benefit of his/her children / dependent. Under this scheme the total amount payable at maturity is covered under insurance. The insured amount will payable after opening the account in case of accidental death and after six months of account opening in case of death for any other reason. The beneficiary will have the options of withdrawal of payable amount at maturity either at a time or on monthly instalment basis.

Marriage Saving Scheme: Marriage saving scheme is a social welfare oriented savings scheme. Under this scheme the total amount payable at maturity is covered under insurance like Education savings scheme. Tk. 250/-, 500/-, 1000/-, 1500/-, 2000/-, and 2500/- can be deposited monthly under this scheme for twelve years.

Education Credit Scheme: Education credit scheme facilitates poor but brilliant students to bear their educational expenses. Every student will have the opportunity to enjoy monthly Tk. 1000/- or Tk. 1500/- as credit facility for 4 years. Repayment period of loan is 4 years with 1 year grace period. The interest rate for this scheme is 12 percent.

Consumer Credit: Personal credit is a relatively new field of collateral-free finance of the Bank. People with fixed income can avail of these credit facilities to buy household goods, consumer items, or to renovate/expand existing house, etc.

Credit Loan: If customers are in possession of BSP (Bangladesh Sanchay Patra) which will mature within the next 05 years but they are in dire need of funds now, this scheme can come to their rescue.

Rural Development Scheme: Rural Development Scheme has been evolved for the rural people of the country to make them self-employed through financing various income generating activities. This scheme is operated through the rural branches of the Bank.

E-Cash Banking Facility: the E-cash card is an ATM card. It can be used as a combination of debit facility. The E-cash card network offers all banking requirements without ever setting foot in a bank. It’s more then just an ATM service for quick cash withdrawals or account enquiries.. E-cash card provides round the clock banking.

Correspondence Relationship

City Bank Limited established local correspondent arrangements with Uttara Bank’s sixty four branches, thus covering almost the entire country and facilitating the ability to meet taka transaction requirement for the customers. The bank established correspondent relationships with a number of foreign banks, namely CITI Bank N.A, Bank of Tokyo, and Standard Chartered Bank, in New York, Tokyo, Calcutta and London. During this period the Bank has set up letter reimbursing banks. The bank maintains a need based correspondents as advising and reimbursing banks. The bank maintains a need corresponding relationship policy, which is gradually expanding.

Other Service

Consistent with the modern edge and competing in the competitive market, City Bank Limited has introduced some innovative banking services that are remarkable in a country like Bangladesh. The services offered by the bank are as follows:

On-line Banking: The bank has set up Wide Area Network (WAN) across the country within its branches to provide on-line branch banking facility to its valued customers. The service named “Financial Core” has opened up several possibilities of improved customer services. Under this facility client of one branch are able to do banking transaction at any other branch of the bank. The bank hosted its Web Site ( ) to facilitate dissemination of information about the banking services and facilities of The City Bank Limited all over the world.

Information Technology: in Banking Operation City Bank Limited has adopted automation in banking operation from few months ago. The main objective of this automation is to provide efficient and prompt service to its valued clients. At present all the branches of the bank are computerized under 37 branches are operated through Financial Core operating system to provide best security to the information. City Bank Limited is providing comprehensive range of banking services with utmost care and efficient to its customers. Auto Teller Machine is used to count money properly to save client’s valuable time as wall. The customer can draw money/ cash from their account within a minute. SWIFT Service City Bank Limited is one of the first few Bangladesh Banks to obtain membership of SWIFT (Society for Worldwide Inter-bank Telecommunication). SWIFT is a members’ owned cooperative which provide a first and accurate communication network for financial transaction such as Letter of Credit, Fund Transfer etc.

Different Banking Sector of City Bank Limited

Corporate Banking

City Bank is a major player in Bangladesh wholesale banking industry to offer the full scope of innovative, customized solutions and services. We offer service at the highest level. Our focus is not on short-term profit, but on building long-term relationships and standing by our clients whenever they need us.

We have a unique business focus on enabling project financing, trade, investment and supply chain financing for clients. We aim to be a one-stop gateway for corporate and financial institutions looking to extend their business. And we are committed to using our country wide network to facilitate our clients’ growing trade and investment flows and supply chain financing needs across our business footprint.

We focus exclusively on corporate and institutional clients domiciled or conducting business in our footprint, offering clients access to our extensive branch network and award-winning suite of state of the art services.

City Bank fully understands the importance of time, convenience and efficiency to the success of your business. We make easy the complex financial world for you and help you maximize every opportunity.

Working Capital Finance


A convenient and flexible form of short-term financing for routine operating expenses and overheads of your company.

Guarantees and Bonds

City Bank issues a full range of Performance Guarantees, Advance Payment Guarantees, Financial Guarantees and Bid bonds for supporting the underlying business of our customers.

Trade Finance

City Bank’s trade finance is tailored to meet the individual needs of your business. We can help even if your company has limited unstructured credit lines, due to reasons such as limited financial resources or sudden spike requirements. That’s because our risk evaluation focuses more on your performance track record, existing performance and collateral valuation.


1. Letter of Credit

2. Back-To-Back Letter of Credit

3. Deferred Letter of Credit

4. Import bills for collection

5. Shipping Guarantee

6. Performance bonds and other guarantees

7. Import Financing


If you are in the export business, we can help you with Export L/C advising, L/C Safekeeping, L/C Confirmation, L/C Checking and Negotiation. For financing solutions, tap on to Pre-shipment Export Finance, Export Bills for Collections, Invoice Financing. Outsource your administrative functions to City Bank’s document preparation service.

1. Export letter of credit advising

2. Export letter of credit safekeeping

3. Export letter of credit confirmation

4. Pre-shipment export financing

5. Letter of credit checking and negotiation

6. Export bills for collection

7. Export invoice financing

8. Document preparation

9. Short/ Mid-term Finance

10. Short Term Financing

As the responsive player in market, you may anytime need fund to utilize for a very short time due to either emergency or short term projects. In such case, City Bank is there to facilitate you. This can be a Short Term Loan or a Short Term Revolving Loan. You can get it either for your inland business or cross-border payment in foreign trade.

Mid Term Financing

City Bank can also equip you the required fund for a longer period. If you worry about fund requirement for a bit longer, ‘City Bank Term Loan’ will make you feel confident that, you got a friend for this.

Project Finance

City Bank has been very active in the finance in a Project:

Our project financing solutions:

Mitigate sponsor exposure to project risk.

Enhance use of leverage to increase project returns by lowering the weighted average cost of capital.

Provide access to significantly longer tenor debt financings.

Create optimum financing structures (source of debt, currency, derivatives) that take into account your company’s particular capital needs as well as industry specific issues.

Lease and Long Term Loans: We can customize a Term Loan or Lease to finance the fixed assets that your business needs (such as land, new premises, equipment and machinery). It may be a Greenfield project or an expansion of an existing plant, which may be financed at competitive floating rate of interest.

Islamic Finance

With over 1.5 billion Muslims in the world, the global Islamic funds market is currently valued at USD 750 billion and is expected to grow exponentially every year.

Innovative Shariah compliant banking solutions

At City Bank our dedicated Islamic Banking team combines Shariah expertise with strong business acumen to offer customers the best of both worlds – comprehensive international banking services and a wide range of Shariah compliant financial products based on Islamic values.

At City Bank, we’ve blended Shariah principles with our rich banking heritage of more than 150 years to provide banking services that support your business while respecting your beliefs.

Our diverse range of Islamic Banking products are designed to give you greater flexibility while conducting business through Shariah-compliant process.

Our Products

Bai Muajjal: For financing procurement of raw material where goods are kept under customer’s custody.

Bai Murabaha: For financing procurement of raw material where goods are kept under bank’s custody.

Hire Purchase under Shirkatul Melk: For financing procurement of capital machinery.

Bai Salam: For financing pre-shipment expenses by purchasing exportable goods in advance.

Structured Finance

A leading provider of cost-efficient, lease-based and asset-based financing solutions to businesses in Bangladesh, we can create and tailor the right structured solutions for your business needs in order to enhance shareholders’ wealth and your market competitiveness.

These solutions include:

Structured financing solutions:

Principal to principal structured capital market transactions optimizes investment returns and reduces effective funding costs.


This normally involves getting a group of banks together (forming a syndicate) to provide the loan amount required by the customer under a set of common terms and conditions laid down in a loan agreement.

Choose City Bank and you gain access to full loan origination, distribution and trading capabilities, together with an unrivalled ability to match lenders and borrowers. Our leadership position and world class distribution capability result from the team’s ability to read the market, and to provide superb sell down coverage.

Cash Management

In today’s competitive financial environment, effective cash management has become a critical success factor. This is the right time to have integrated cash management solution.

Our cash management services include local and cross border payments, collections, information management, account services, liquidity management and investment services for both corporate and institutional clients.

Payment Services

We can help you save time and money by reducing processing costs while providing a value-added service to your suppliers.

City Bank’s payment solutions can help to reduce your overall processing costs – for domestic and global payments – saving you time and money while providing a value-added service to your suppliers. Our comprehensive payment services will be tailored to enhance your accounts payable process. This will eliminate many manual tasks involved in making payments, allowing you and your staff to spend more time focusing on your core business needs.

We understand that most of your effort in the payment cycle is directed towards initiation; difficulties in the subsequent reconciliation process can jeopardize the whole process. With City Bank Channels you can now track the exact status of each payment through timely reports that can be uploaded seamlessly into your company’s system.

Collection Services

We have a comprehensive branch network and the local knowledge to help you with lower costs and greater efficiency.

The City Bank Collections Solution leverages the Bank’s extensive regional knowledge and widespread branch network across our key markets to specially tailor solutions for your regional and local collection needs.

This Collections Solution, delivered through a standardized international platform, has the flexibility to cater to your local needs, thus enabling you to meet your objectives of reducing costs and increasing efficiency and profitability through better receivables and risk management. The key components of our solution include the following:

Liquidity Management

Let us help you to get the most out of your company’s cash resources with physical sweeping, notional pooling, interest reallocation and investment.

Investment Banking

We are a market leader across our footprint in innovative, landmark deals, multi-jurisdiction solutions and sophisticated product structuring for corporate and institutional clients. We hold leading positions in fixed income local currencies and loan syndications. Our in-depth understanding of the local regulatory framework in the domestic debt and loan markets, product expertise and wide geographic reach, help you achieve your financing and investment objectives.

Debt Capital Market

Our proven knowledge, product capabilities and global reach make us well-suited to matching investors’ needs with the funding requirements of international and domestic issuers.

Asset Backed Securities

We structure, arrange and distribute asset-backed and future flow transactions for clients and our track record of innovative deals puts us at the forefront of developing securitization markets in our footprint.

Credit Derivatives

We offer investment tools and a range of local currencies to provide structured asset solutions to meet specific investment needs, achieve target yields on your portfolio and manage risk exposure.

Convertible Bonds / Equity Derivatives

Our convertible bonds and equity derivatives teams open avenues of financing and investing linked to the equity asset class – all underpinned by local market knowledge, deep client relationships and innovation.

Retail Banking

One of the most remarkable success stories of last 50 years’ banking industry globally has been the conceptualization and innovative execution of banking with individual customers, their friends & families. The industry has termed it as Retail Banking or Personal Banking or Consumer Banking; and it has now – at a very rapid pace – become the major revenue line for most of the top banks in the world.

City Bank, too, recently has started its journey in Retail Banking.

“City Retail – add a little city to your life” is the new brand-mantra, the pay-off line for City Retail. Our aim is clear. We want City Bank to become the most preferred bank to all individual clientele of the country, at least of the cities and towns where we operate. We want to provide our customers the best-in-class services, innovative products and financial solutions from smart outlets – all with a big smile that conveys and generates happiness all the way.

Table 3?1 Retail Banking

Deposit Loan NRB Card
Current AccountSavings AccountCity OnayashCity ShomridhdhiCity Projonmo

City Ichchapurun


City Solution City Drive NRB Debit CardVISA Electron
Credit CardVISA Classic LocalVISA Classic DualVISA Gold LocalVISA Gold Dual


City Bank offers a wide variety of deposit products to meet your financial needs. From current and savings accounts to Fixed Deposits and Pension Schemes each account is designed to give you the best value for your money.

Current Account

Our current account meets the needs of individual and commercial customers through our schedule benefit.

Minimum balance: Taka 5,000/-

Interest Rate: Nil

Saving Account

It is a sound savings for retail customer. We give the major facilities and services to our customer through 84 branches allover in Bangladesh with our skilled manpower.

Minimum balance: Taka 500/-

Interest Rate: 6.50

City Onayash

City Onayash – “ earn easy on your savings account, earn profit every month! “

City Onayash is a unique kind of savings account which calculates interest on your daily balance and pays interest to you every month. Interest Rate: 5.50%.

It is a major departure from the conventional savings account available in the market. All such accounts calculate interest on the average or lowest balance of the month, while City Onayash does on daily product basis. Not only that, while those conventional savings accounts pays interest only twice a year – in December and June – City Onayash pays it to you every month. Happiness at each month end!

City Shomridhdhi

It’s a unique offer from City Bank. City Shomridhdhi is an exceptional DPS product that is distinctly more attractive than the prevalent DPS products in the market. You receive a hefty sum at the end of the term against your monthly deposit of small instalments. It’s a perfect way to secure your financial future!

Table 3?2 Profitability Matrix_city shomridhdhi

Term Interest Rate
3 (Three) Years 10.00
5 (Five) Years 10.25
7 (Seven) Years 10.50
10 (Ten) Years 11.00

City Projonmo

It’s a financial safety for your future generations backed by complete immense protection! City Projonmo is a unique monthly deposit scheme that you open for your kids to safeguard their future against all uncertainties and risks. As a guardian of the child you can open this account which builds great & unmatchable savings for you over the years. By the time your child is past his or her school age, there is this sufficient cash in your hand to take care of his / her higher education, marriage or other such large expenses. However, the most interesting part of this scheme is the full insurance protection that you automatically enjoy. This simply means, in case of death or total physical collapse of the parent or guardian, the bank will pay the full value of the scheme for the full term no matter in reality how many months or years have been actually completed by you.

Table 3?3 Profitability Matrix-city projonmo

Term Interest Rate
3 (Three) Years 10.00
5 (Five) Years 10.25
7 (Seven) Years 10.50
10 (Ten) Years 11.00

City Ichchapurun

City Ichchapurun – great opportunity to earn against your savings every month! This product allows you to earn interest and enjoy interest every month that accrues in your fixed deposit account, no matter what the term of the deposit is. It helps make your financial planning more disciplined, and your life more organized. While your fixed deposit remains untouched and well-kept for future, you keep on getting the profit on a monthly basis.


If you believe in long-term investments and wish to earn higher interests on your savings, NOW is the time to invest your money in our Fixed Deposit.

Table 3?4 Fixed Deposit Rate

Term of Deposit Interest Rate
1 month 10.00
3 month 12.00
6 month 11.50
01(One) year
Below Tk. 1.00 crore 12.50
Tk. 1 crore to below Tk. 20.00 crore 13.0
Tk. 20.00 crore & above 13.50
02(Two) years 12.00


City Solution:

City Solution Whatever the occasion or requirement may be, City Solution – any personal loan from City Bank – is there to solve all your problems and to fulfill all your dreams. You can access this facility from our selected branches across the country.


Loan amount ranging from Tk. 50,000 to Tk. 1000,000.

Loan tenor 12 to 60 months.

No guarantor required for the loan amount up to Tk. 3 lac.

No hidden charges

Competitive interest rate

Processing fee 1%


Age: 22 to 60 years

Experience: Salaried executive total 1 year including 6 months with current employer.

Experience: Business person 2 years.

Experience: Professional 1 year.

Minimum monthly income: Salaried executive Tk. 15,000;

Self employed Tk. 25,000; and

Business person Tk. 30,000.

Loan Takeover Plan: An exclusive offer for other bank’s credit worthy customers who can now transfer their personal loan outstanding to City Solution with a preferential interest rate and waiver on processing fee.


Minimum 6 loan EMI repayment with existing bank

A minimum take over loan amount is Tk. 1,00,000 and maximum Tk 9,50,000


No processing fee

No extra cost for loan takeover

No processing fee for additional loan

1% reduced from City Solution interest rate

City Drive

Owning a car is no longer a luxury. Car for your family is now a matter of fulfilling a necessity. Appreciating that basic need, City Bank introduces City Drive, a tailor-made auto loan scheme for individuals.


Loan amount ranging from Tk. 300,000 to Tk. 20, 00,000.

Car financing up to 90% of reconditioned or new vehicle price.

Lower interest rate & up to 100% financing for loan against cash security.

Loan tenor 12 to 60 months.

No hidden charges.

Competitive interest rate.

Loan processing fee 1% of loan amount.


Age: 22 to 60 years.

Experience: Salaried executive total 1 year including 6 months with current employer.

Experience: Business person/pro-professional 1 year.

Monthly income: Minimum Tk. 30,000.


Debit Card

Now comes the Visa Debit Card from City Bank. Your life, therefore, becomes hassle-free and safe; and it is Visa Electron branded, which makes you the proud owner of a meaningful plastic.


Cash withdrawal from 500+ Visa ATMs 24/7/365 all over the country.

Shop and dine at hundreds of merchant Visa outlets all over the country.

Balance enquiry

Fund transfer from your account to credit card 24/7/365.

PIN Change

Mini statement

Cash withdrawal @ Taka 12 per transaction at 250+ DBBL ATMs.

City Credit Cards:

VISA Local Classic

Usage: Local Classic/Silver Card (For Domestic use only)

Limit: Local Classic/Silver Card BDT 10,000 – BDT 49,999.

VISA Classic Dual

Usage: Dual Classic/Silver Card (For both International & Domestic use)

Limit: Dual Classic/Silver Card BDT 10,000 – BDT 49,999 + US$ 500 – USS$ 1,999.

VISA Gold Local

Usage: Local Gold Card (For Domestic use only)

Limit: Local Gold Card BDT 50,000 – BDT 500,000

VISA Gold Dual

Usage: Dual Gold Card (For both International & Domestic use)

Limit: Dual Gold Card BDT 50,000 – BDT 500,000 + US$ 2,000 – US$ 3,000

Variable Interest Rate

Variable Interest Rate is the application of different interest rate based on the transaction volumes done through your CBL credit card. The more you do transact with CBL credit card, the less interest rate you are charged on your transaction amount. In Bangladesh, we are the first bank to care for your volume of transactions you do with your credit card.

Program Dynamics

We are offering below two types of interest rates for our cardholders:

· Premium Rate

· Standard Rate

Balance Transfer

It’s an exclusive offer for other bank credit cardholders from CBL. Credit card market has been bloomed. A monopolistic competition is still going on in the credit card market. Many new players already accessed to the market. Meanwhile potential segments of the market have been acquired by them. CITY Card EMI Plan

CITY Card EMI plan is an installment plan that allows cardholder the flexibility to convert any retail purchase transaction into an installments scheme where the cardholder pays back the amount at a rate of interest as low as 16.99% per annum over a tenor ranging from 6 months to 36 months. The customer enjoys the flexibility to buy high value items on The City Bank credit card and conveniently pay in monthly installments at a lower interest rate. The minimum transaction amount eligible for an installment plan is BDT 3,000.

Table 3?5 Payback factors

Tenor Less than BDT 50,000 More than 50,000
6 months 1.09495 1.08495
12 months 1.18990 1.16990
18 months 1.28485 1.16990
24 months 1.37980 1.33980
30 months 1.47475 1.42475
36 months 1.56970 1.50970

SME Banking

SME Banking of City Bank is assuming a new and modern dimension. It is entering in to a wider horizon. The philosophy of extending banking services to SME’s of the country is to meaningfully push every one of them up to the next level of respective business operations. The upward push would be meaningful as they would be business wise competitive for a sustainable future. It is therefore would be turning in to an abode of SME’s to grow to the next level. Hence, the bank has named it City Business – for taking SME’s to the next level.

For the first time in the history of City Bank, SME Banking business processes are going to be driven thru a centralized platform model. This is a fundamental move away from a 25 years legacy system of decentralized geography based branch banking model. We all know this transformation process and momentum is already in place. This would be completed by 2008.

SME Banking has three types of offer:

· City Muldhan;

· City Sheba;

· City Shulov.

· City Muldhon

SME business in Bangladesh mostly requires active financial / banking support for their business to grow. To cater various such needs of different trade related business, very soon in July, 08 The City Bank is going introduce a complete tailor made package which surely will meet your specific financial needs and services.

City Sheba

To facilitate different concerns engaged in service related industry, The City Bank is going to introduce a customized product naming City Bank Sheba. The product will positively satisfy different business related needs of the clients involved in different service sectors.

City Shulov

A unique product to facilitate concerns engaged in manufacturing business. The product will facilitate to meet up diversified needs to different manufacturing concerns.


City Bank Treasury & Market Risk Division

City Bank Ltd. has a dedicated Treasury team who is capable of providing all treasury Solutions. Through our foreign correspondent business partners CBL is providing a wide range of Treasury products. In CBL Treasury, there are four teams who are specialized in their own area to ensure the best possible solution to our customer requirement. CBL has following teams in the Treasury:

Foreign Exchange (Local & G7)

Money Market

Corporate Sales

ALM & Market Research

Each team is dedicated to provide best solutions to their respective areas. Through our four dedicated team we provide the following services:

Client Solution & Risk Management

Hedging solutions against adverse market movements

Advice on efficient hedging policy

Structured products to match customers’ needs

Corporate Advisory Services

Product Range

Foreign Exchange

Money Market

Foreign Exchange & FC Interest Rate SWAP

Foreign Currency & Commodity Derivatives

Market Information & News Update

Overnight Deposit

Funds which are placed / borrowed for overnight are known as overnight deposit. Rates of the overnight deposit are fixed on a daily basis and the rate keeps on changing on the basis of demand and supply of any day. It is used to meet up the daily fund management of all financial institutes. Overnight deposit is also known in the market as call deposit.

CBL is an active participant of the inter-bank call market. CBL injects market liquidity and plays an important role in the inter-bank call money market.

Term Deposits

A deposit held at a financial institution that has a fixed term. These are generally short-term with maturities ranging anywhere from a month to a year. When a term deposit is account are opened, the lender/borrower understands that the money can only be withdrawn after the term has ended or by giving a predetermined number of days notice.

Inter-bank term deposits ar