ASA UNIVERSITY BANGLADESH

ASSIGNMENT ON

SUBMITTED TO: 1

Rebeka Sultana Liza

(Course teacher)

Business Communication

SUBMITTED BY: 1. Mahmuda

(ID: 081-12-0399)
2. Zannatul Ferdous
(ID: 081-12-O4O3)
3. DM SAMS-UZ-ZAMAN
(ID: O81-12-0382)
4. Azizur Rahman Azad
(ID: 081-12-0407)
5. Emran Kayes
(ID: 081-12-0406)
6. ABU SALEH MD. TARIQUE ADNAN
(ID: 081-12-0404)

Batch: 3RD
Section: J

LETTER OF TRANSMITTAL
7TH April 2009
2

Rebeka Sultana (Liza)

Course teacher
Faculty of Business
ASA University Bangladesh.

Subject: Customer retention in Bank.

Dear Madam,
Its great pleasure for us that, we are going to present a report on Customer retention in
Bank You assigned us this topic for prepare a report.
We know that Dutch-Bangla Bank is one of the leading banks in Bangladesh. Since 1996 it
has been providing different service very effectively.
Dutch-Bangla Bank employees communication channel is very effective and strength. Thats
why they make good profit every year. So we want to know the Communication channel
strength and effectiveness of Dutch-Bangla Banks executives. As the topic of our report goes
Customer retention in Bank.
Working on this research has given us the opportunity to theoretical with practical
experience. This project gives a wide view of the existing situation of Communication
channel strength and effectiveness different aspects regarding this particular topic.
We would be very happy to provide you with clarifications regarding our research.
Yours truly,
MAHMUDA

ABU SALEH MD.TARIQUE ADNAN

(ID: 081-12-0399)

(ID: 081-12-0404)

ZANNATUL FERDOUS
(ID: 081-12-O4O3)

(ID: 081-12-0407)

DM SAMS-UZ-ZAMAN
(ID: O81-12-0382)

AZIZUR RAHMAN AZAD

EMRAN KAYES
(ID: 081-12-0406)

ACKNOWLEDGEMENT
3

We would like to thank our honorable course teacher Rebeka Sultana (Liza) giving us the
chance to write this report on Customer retention in Bank.
Thanks to her that we were able to understand this report properly. She has motivated us all
the time by giving suggestions and delivering supporting materials about the study.
Next thanks go to MOHAMMAD ZAFRUL ISLAM gives us an appointment without any
bureaucratic process and also give us information about the organization.
We also very grateful to all of our group members who had their important contribution to
making this report.
We would like to thanks to those people whom we interviewed, and to all other people who
were supported us, while making this report. Finally, our gratitude along with thanks goes to
The Almighty Allah for keeping everything on the right time.

ABSTRACT

Customer retention is a most important factor of Bank. A bank that is bad in dealings, like in
conveying his ideas to customer, bank who is bound to fail. In his day-to-day activities,
Banks are highly depending on the customers satisfaction. Banks has also to understand the
art of satisfying the customer. So that Bank can give maximum contribution to satisfy its
customers as well as be able to retain the customers.
Good banks managers develop this art in due course by understanding the people and on the
basis of trips of good communication. They also take advantage their own experiences. It has
been observed that one particular method is not good for all customers. Personal factors of a
customer have to be taken into account if one wants to retain their customers.
We make a report on Customer retention in bank, which is the most important part of a bank.

Executive Summary
5

Dutch-Bangla Bank Limited (the Bank) is a scheduled commercial bank. The Bank was
established under the Bank Companies Act 1991 and incorporated as a public limited
company under the Companies Act 1994 in Bangladesh with the primary objective to carry
on all kinds of banking business in Bangladesh. The Bank is listed with Dhaka Stock
Exchange Limited and Chittagong Stock Exchange Limited.
DBBL- a Bangladesh European private joint venture scheduled commercial bank commenced
formal operation from June 3, 1996. The head office of the Bank is located at Senakalyan
Bhaban (4th floor), 195, Motijheel C/A, Dhaka, Bangladesh. The Bank commenced its
banking business with one branch on 4 July 1996.

TABLE OF CONTENTS
SL

Title

Page no

NO.
1.

Letter of Transmittal

2.

Acknowledgement

3.

Abstract

Executive summary

Background

6.

About Dhaka Bank

6-10

7.

Methodology of the study

8.

Limitation of the study

11-12

9.

Questionnaire and Analysis

13-26

10.

Conclusion

11.

Questionnaire

28-32

12.

Bibliography

33

10

27

Chapter -1: Introduction

1.1 Background
A report is something about a comment on specific considerable matter. Its says positive and
negative on a particular subject and given proposals and suggestions for further improvement
if the report is on customer retention, it will be an analysis on the customer retention of that
bank and overall customer satisfaction on the provided service by a bank DUTCH
BANGLA BANK LTD is one of the leading bank in Bangladesh, is very much dedicated

for ensuring quality service to its customers. This report is about the customer retention in
bank by DUTCH BANGLA BANK.

1.2 Statement of the problem

Customer retention is very important thing for a bank Institute. The growth of any bank
institute is highly depending on the satisfaction of its up going customer. People like to
transect their money in that Banks which is more secure and ensure the best quality to their
customers. If a bank is able to satisfied its customers its must be able to reach its desire goal.
So, the statement of problem is HOW THE BANK RETAINS CUSTOMER BY
PROVIDING SERVICE. Here discussing issue will be the customer satisfaction and
providing services.

1.3 Objective of the study

The objective of the study is
o How one bank can retain their customer?
o Why customers are switch to another bank.
o How much fruitful of the provided service.
o What is the customer demand?

1.4 Scope of the study

The report really focused on:
o A broad overview about the organization.
o The customer retention policy of the bank.
o Customers view point about the given services.
o Proposals and suggestions for future improvement.

1.5 Limitations of study

Regarding data collection surveying, I had to go through many limitations, which may
possibly affect the study a little bit. Data has been collected from primary and secondary
sources. The purity of the study was dependent on the fairness of the collected data. I have
tried my level best to collect and process the whole reliable data from different sources.
9

Lake of co-operation: Sometimes the employees did not want to co-operate with me
because they have different attitude and way of behavior. So, it was difficult for us to
survey.
Lake of seriousness: Sometimes respondents are not seen serious and some of them
answer the questionnaire as a fun.
Data collection from different locations: Sometimes an alternative source was
chosen, putting behind the targeted one.
Wrong thinking: When we requested some particular female customers they thought
us wrong, as we were trying to irritate them.
Lack of funds: We are student and we do not have any earning source, it was very
hard for me to collect, process and surveying the data.
Lack of time: Time is a big matter for preparing this kind of research. So, the report
would have been much better if more time was available to concentrate and prepare the
report.

10

Chapter-2: Methodology

Methods of Collecting Data :

The paper has been prepared on the basis of data collected from both primary and secondary
sources. Primary sources of data are mainly obtained from my selected organization Dutch

11

Bangla Bank as interview survey and we help more from our course instructor and I also got
help from some of my class-mates and seniors.
Primary: We have got the primary information through interview, observation and dissection
etc.
Secondary: We have got the primary information through our book, Annul report of Dutch
Bangla Bank Ltd. and Internet.
Study Approach: Study approach was survey category and observation which is based on
summation score. A summation of job is more sophisticated.
Study Instruments:
Evaluation Form: We make Evaluation Form to evaluate the Customers point of
view.
Questionnaire: We make Questionnaire for take practical information about the
topic.
Interview: The interview was face-to-face.
Mechanical Instrument: We used paper, pencil, voice recorder, cell-phone,
computer, printer etc.

12

Chapter-3 : Company Profile

About Dutch-Bangla Bank Ltd.

Dutch-Bangla Bank Limited
Type
Commercial bank
Founded
Dhaka, Bangladesh
Headquarters Bangladesh
Industry
Banking
Products
Banking services 13

Bangladesh economy has been experiencing a rapid growth since the '90s. Industrial and
agricultural development, international trade, inflow of expatriate Bangladeshi workers'
remittance, local and foreign investments in construction, communication, power, food
processing and service enterprises ushered in an era of economic activities.
The Bank was incorporated as a public limited company under the Companies Act. 1994. The
Bank started its commercial operation on June 3, 1996 with only one branch.
The Bank has 64 branches across the country and a wide network of correspondents all over
the world.
The Bank offers the full range of banking and investment services for personal and corporate
customers.
Dutch-Bangla Bank Ltd. is the preferred choice in banking for friendly and personalized
services, cutting edge technology, tailored solutions for business needs, global reach in trade
and commerce and high yield on invest.

The Board and its Committees

The Board
Chairman: Mr. Abul Hasnat Md. Rashidul Islam
14

Directors:
Mr. Zaheed Hossain Khan
Mr. Bernhard Frey : Nominee of Etacol Hong Kong Limited
Mr. Shahabuddin Ahmed : Elected from General Shareholders' group
Mr. Md. Shahidur Rahman
Mr. Md. Yeasin Ali : Ex-officio Director

The Committees of the Board

1. Executive Committee of the Board of Directors
i) Mr. Abul Hasnat Md. Rashidul Islam - Chairman
ii) Mr. Zaheed Hossain Khan - Member
iii) Mr. Md. Shahidur Rahman - Member
iv) Mr. Md. Yeasin Ali - Member

2. Audit Committee of the Board of Directors

i) Mr. Zaheed Hossain Khan - Chairman
ii) Mr. Shahabuddin Ahmed - Member
iii) Mr. Md. Shahidur Rahman - Member

Sponsor Shareholders

15

Main Communication channel hierarchy of Dutch Bangla Bank

BOARD

CHIEF EXICUTIVE OFFICER

MANAGING DIRECTOR

Mission Statement
16

Our Mission
Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a
commitment to social responsibility. "Profits alone" do not hold a central focus in the Bank's
operation; because "man does not live by bread and butter alone".
Our Vision
Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics,
music and entertainment, science and education, health and hygiene, clean and pollution free
environment and above all a society based on morality and ethics make all our lives worth
living.
Our Goal
Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs
and satisfaction and to become their first choice in banking. Taking cue from its pool
esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that
upholds and epitomizes its vaunted marques "Your Trusted Partner".
Their Branches
Presently Dutch Bangla Bank is operated in 18 different districts with 64 Branches, Dutch
Bangla Bank has built its reputation as one of the leading banks in the private sector
throughout these years. Mr. Md. Yeasin Ali, Managing Director of the Bank is seen receiving
the ICAB National Award-2006 (Second prize) for the best published Accounts and Reports
in Financial Sector (Banking) from Dr. A.B. Mirza, Md. Azizul Islam, Hon'ble Adviser for
Finance, Planning, Commerce and Posts & Telecommunications.

17

Chapter-4: Policy & Strategy

Policy & Strategy:

To retain their customer with satisfaction Dutch Bangla bank

provides all kinds banking facility to customers. DBBL assure the following Policy &

Strategy to their customers

18

FUNCTION OF THE ORGANIZATION:

Banking ProductsDeposit :
Savings Deposit Account
Current Deposit Account
Short Term Deposit Account
Resident Foreign Currency Deposit
Foreign Currency Deposit
Convertible Taka Account
Non-Convertible Taka Account
Exporter's FC Deposit (FBPAR)
Current Deposit Account-Bank
Short Term Deposit Account-Bank

Term Deposit :
MONTHLY TERM DEPOSIT
TERM DEPOSIT 3 MONTHS
TERM DEPOSIT 6 MONTHS

Loan & Advances

Life Line (a complete series of personnel credit facility)
Loan against Trust Receipt
Transport Loan
Real Estate Loan (Res. & Comm.)

Customer service and online banking

19

DBBL continued to be a customer focused, need based and solution-driven Bank. Our
products and services are strongly supported by IT infrastructure and online banking
facilities, which are upgraded and expanded on a continuous basis. Seventy seven (77) more
ATMs were installed in 2007 to increase the number of ATM to 207. We are providing any
branch anytime banking services to our clients 24 hours a day and 365 days a year.

DBBL Internet Banking

DBBL Internet banking enables customer to access his/her personal or business accounts
anytime anywhere from home, office or when traveling. Internet Banking gives customer the
freedom to choose his/her own banking

hours. It can save time, money and effort. It's fast,

easy, secure and best of all.

International Trade Performance

Areas of Operation :
Import Finance
DBBL extends finance to the importers in the form of:
1. Opening of Import L/C
2. Credit against Trust Receipt for retirement of import bills.
3. Short term & medium term loans for installation of imported machineries &
production thereof.
4. Payment against document.

Export Finance
20

1. Pre-Shipment Finance
Pre-Shipment finance in the form of:
I)

Opening of Back-to-Back L/C

II)

Export Cash Credit

2. Post-Shipment Finance
Post-Shipment finance in the form of:
I) Foreign/Local Documentary Bills Purchase
II) Export Credit Guarantee
III) Finance against cash incentive

Foreign Remittance
DBBL provides premium quality service for repatriation and collection of remittance with the
help of its first class correspondents and trained personnel. By introducing on-line banking
service and becoming a SWIFT Alliance Access Member, which enable its branches to send
and receive payment instruction directly that helps provide premium services. Remittance
services provided by DBBL are:
Inward Remittance: Draft, TT
Outward Remittance: FDD, TT, TC and Cash (FC)

Treasury
DBBL is well equipped for treasury operation through subscribing Reuters's terminal and
operating in SWIFT network. It is also well equipped with competent human resources for
efficient dealing.

Account Services
21

DBBL provides all the accounts services as prescribed by the guidelines of Central Bank
(Bangladesh Bank). We offer competitive interest rate and provide premium quality services
for the accounts. Account services are:
1. Foreign Currency Account
2.

Non-Resident Foreign Currency Deposit Account (NFCD)

3. Resident Foreign Currency Deposit Account (RFCD)

4. Convertible and Non-Convertible Taka Account
5. Non-Resident Blocked Taka Account

Human resources and organizational development

In support of its strategy, Dutch-Bangla Bank Limited focuses on attracting, developing and
motivating the very best individuals and on encouraging talent internally. DBBL continues to
endeavor to ensure that employees' engagement with the business is maximized, as this is
beneficial to shareholders, colleagues and customers alike. DBBL recruits people from a
broad cross-section of society.
A high quality and competent human resource is crucial to continued growth and success of
the Bank, which can be achieved by improving skill, knowledge and productivity of the
employees.

22

SWOC Analysis
Strengths
Satisfactory Capital Adequacy.
Satisfactory business growth.
Experienced top management.
Diversified product lines.
Satisfactory asset quality.

Opportunities
Investment in SME and Agro based
Industry.
MIS in continuous development
process.
Basel-II compliance for capital
adequacy

Weaknesses
Decreasing market share.
Deposit growth is less than Peer and
industry growth.
Does not have own training institute.
Dependency on term deposit.

Challenges
Increasing cost of fund.
Implementation of Basel-II.
Increased competition in the market.

23

Our Visited Branch

For taking interview we go on of the Branch of Dutch Bangla Bank.

Branch Addresses:
LOCAL OFFICE
BANKING HOURS

Sunday - Thursday 9 AM. To 3 PM.

ADDRESS

231,Senpara Parbota (1st Floor)

Mirpur, Section-10
Dhaka-1216

CONTACT PERSON

Mohammad Zafrul
Relationship Officer

E-MAIL

local@dbbl.com.bd

PHONE NUMBER

+8802 9015957,
Mobile: 8801819-006702

FAX

+880-2-9015966

Islam

Executive

Analysis and findings of Questionnaires are as follows:

24

Assistant

COMPETATIVE ADVANTAGE
Customers perceive their bank has competitive:
Serial
No.
1.

Has excellent service quality.

2.

Uses latest technology.

3.

Has memorable advertisement.

4.

Offers unique and distinctive

30
product.
Has competitive pricing compare to
30
others.

5.

Topics

Mean

Standard
Deviation

30

4.3

0.7022

30

4.033

0.6686

30

3.70

0.7943

3.60

0.7239

4.06

0.7526

25

Findings: 1. Dutch Bangla Bank provides Excellence in banking services.

2. Dutch Bangla Bank offers competitive interest rate and provides premium quality
services for the accounts.
3. DBBLs provides the latest technology to their customer. The Bank has launched
Online Banking service, joined a countrywide shared ATM network and has introduced a cobranded credit card. A process is also underway to provide e-business facility to the bank's
clientele through Online and Home banking solutions

26

CORPORATE IMAGE
Customer perceive the image of their banks
Serial
No.
1.

Topics
Widely known.

2.

Stable.

3.

Reliable.

4.

Trust worthy.

5.

Involved in the community.

6.
7.

Mean

Standard
Deviation

30

4.13

0.5783

30

4.17

0.8339

30

4.33

0.8022

30

4.47

0.6388

30

4.13

0.7302

Well light.

30

4.10

0.6074

Unique compare to others.

30

4.17

0.6989

27

Findings:
1. DBBL is too much Trust worthy and Reliable to their customer.
2. Dutch Bangla bank offers various type of unique service/product to
their customers.
3. DBBL is a well establish bank. It continues its banking activity with

quality

and profitability since 1996.

4. DBBL is a widely known commercial bank. The Bank has 64 branches
country and a wide network of correspondents all over the world.

28

across the

PERCEIVED VALUE
Customers value their Bank because it has:
Serial
No.
1.
2.
3.
4.
5.
6.
7.
8.

Topics
Efficient Service:
Offers latest product:

Mean

Standard
Deviation

30

4.13

0.6815

30

3.60

0.6214

3.80

0.6102

3.97

0.8899

30

4.00

0.6432

30

4.47

0.7878

30

3.93

0.5915

30

4.00

0.6814

Listen and be sensitive to customer

30
need:
Flexible Banking policy:
30
Convenient branch locations:
Many branch locations:
Fair method of setting fees:
Extended banking hours:

29

Findings:
1. Dutch Bangla Bank has built its reputation as one of the leading banks in the
private sector. Presently Dutch Bangla Bank is operated in 18 different districts with 64
Branches,
2. The Bank offers the full range of banking and investment services for personal and
corporate customers, backed by the latest technology and a team of highly motivated officers
and staff.
3. Dutch Bangla Bank serves their customers Sunday - Thursday 9 AM. To 3 PM. Its
also provide 24 hours ATM card facility.

After findings the analysis is proved that DUTCH BANGLA BANK LTD. Is too much
caring about their customers and customers are satisfied about the bank.

30

ON
Dutch-Bangla Bank LTD.

31

Responds to the question: How does the management take opinion from Customer in
case of problem solving?

80
60
60

40

40
20
0
Series1

0
SUGGESTION BOX

INFORMAL MEETING

40

60

INTERNET CHAT ROOM

Analysis:
In the case of problem solving management take opinion from customers in several ways like
suggestion box, informal meeting, Internet chat room etc. When we talk with Dutch Bangla
Bank customers they says that informal meeting is effective because in this meeting they talk
with management in a friendly environment out side the office, they feel good to discuses
with the management but suggestion box is long and slow process in their management can
not take right and rapid decision. On the other hand Internet chat room is a modern way to
communicate with the customers in the web that comes to the future when the internet system
is spread everywhere. Out of 20 customers 40% customers are agree with suggestion box,
60% are agree with Informal meeting and 0% for Internet chat room.

32

Responds to the question: Communicate with outside the organization, what type of
Media use?

Analysis:
Communicate outside the organization Dhaka Bank use Advertisement and internet mostly.
Usually they give advertisement on TV, they have a beautiful web side that consumer can get
information from that. From the questionnaire we see that they use Press conference 14%
advertisement 23%, internet 14% and radio / News paper 49%. They give more advertisement
on Daily News paper.

33

The mediums used by your organization to communicate with other branch:

Analysis:
In their daily works Dutch Bangla Banks need to communicate with other branches Most of
the time they use telephone and intranet. Intranet is the easy way the easy way to
communicate with other employees, every employees of Dutch Bangla Bank have a
individual ID to login by that number they can use intranet. But they can not access other web
side. In the past the use Fax mostly but day to day life it is decreasing because it takes time.
Now they do not use video conferencing but in future they hope so.

34

Responds to the question: Most of the time organizational work done by-

Analysis:
Out of 20 employees 45% are do Team work, 30% departmental base, 15% according to
order, 10% individually. It clearly shows that Dhaka Bank practices Team Work for solve any
problem, do any project or fulfill their organizational goal. It shows that most of the time
organizational work is done by groups. In Dutch Bangla Bank they follow wheel network
because it relies on a central figure to act as a conduit for all of the groups communication.
But the management encourages selecting a leader by the group themselves among them to
ensure some accountability and friendly environment.

35

Responds to the question: What type of behavior customers aspect from bank?

BEHAVIOR EXPECT FROM BANK

FAMILIAR

Series1

10

90

FRIENDLY

Analysis:
Out of 20 respondents 90% customers are agree that banks employees behave with them
Friendly. If Banks employees behave with there customers as friendly, customers become
satisfied.

36

Responds to the question: Most probably your organization can communicate with
telephone, fax, E-mail etc but do you have any VIDEO CONFERENCING system?

Analysis:
Video conferencing is a modern and popular communicating media in many developed
countries, but in Bangladesh it is not popular till now because of technological improvement.
Dutch Bangla Bank employees are not use Video conferencing system but they expect that in
future it will come.

37

CONCLUSION
After a long analysis, it can be said that Dutch Bangla Bank limited is a leading banking
company that is ensuring its growth by the satisfied customers. From starting, the bank is
trying to perform the needs of customer accordingly. If the organization perform its duty in
this way and maintain it accordingly, soon itll grasp the leading position of commercial
Banking Company.
In conclusion, it can be also said that the Banking service given by the Dutch Bangla Bank
LTD. is very much satisfactory and competitive to any commercial Bank LTD.

RECOMMENDATION
If Dutch Bangla Bank wants to improve its service quality and survive with satisfactory
growth rate it might be flowed the following Recommendations:
Ensuring the best service to the customers.
Decreasing the cost of funds.
Raising the Investment in SME and Agro based Industry.
Applying the modern technology for maintaining the satisfied trend of customer.
Emphasis on Basel-II compliance for capital adequacy
Raising market share.
Increasing the Deposit growth which is less than Peer and industry growth.
Open own training institute.
Reduce the dependency on term deposit.
The

Bank

should

be

more

sincere

facing a hassle or not.

38

whether

any

type

of

customer

Appendices
Questionnaire
Competitive Advantage

Customers are satisfied with :

1.
2.
3.
4.
5.

GRADING

Has excellent service quality .......

Uses latest technology ..
Has memorable advertisement ..
Offers unique and distinctive product..
Has competitive pricing compare to others.

1
1
1
1
1

2
2
2
2
2

3
3
3
3
3

4
4
4
4
4

5
5
5
5
5

Corporate Image

Customers perceive the image of their bank :

1.
2.
3.
4.
5.
6.
7.

Widely known .
Stable
Reliable .
Trust worthy .
Involved in the community..
Well light ..
Unique compare to others

GRADING
1
1
1
1
1
1
1

2
2
2
2
2
2
2

3
3
3
3
3
3
3

4
4
4
4
4
4
4

5
5
5
5
5
5
5

Perceived Value

Customers value their bank because they have

1.
2.
3.
4.
5.

Efficient service
Offers latest product
Listen and be sensitive to customers need
Flexible banking policy
Convenient bank location
6. Many branches location
7. Fair method of setting fees
8. Extended banking hours

39

GRADING
1
1
1
1
1
1
1
1

2
2
2
2
2
2
2
2

3
3
3
3
3
3
3
3

4
4
4
4
4
4
4
4

5
5
5
5
5
5
5
5

BIBLIOGRAPHY
Basic Business Communication- Lesikar, Flatley
http://en.wikipedia.org/wiki/Dutch_Bangla_Bank_Limited
http://www.dbbl.com/about_aboutus.php
http://www.dutchbanglabankltd.com/about_sponsors.

40