Executive Summary:

The City Bank Limited has started its operation that is; the date of incorporation is March 14,
1983 under the license issued by Bangladesh Bank as the first private sector Bank in Bangladesh
with authorized capital of Tk. 1.75 Billion. The bank is listed with Dhaka Stock Exchange
Limited and Chittagong Stock Exchange Limited in 1986 as a publicly traded company for its
general class of shares.

The City Bank Limited serves its customers at home with 83 branches spread over the country
with total manpower of 1991. The Bank has expanded its services over the years, which covers
wide diversified areas of trade, commerce & industry. They have always tried to provide different
products and services to the customers through their wide and ever growing domestic network.

Major types of financing

o Working Capital Finance

o Short Term Financing
o Mid Term Financing
o Project Finance
o Lease and Long Term Loans
o Structured Finance
o Islamic Finance
o Liquidity Management
o Payment Service
o Collection Service

Profile: City Bank Ltd.

1
The City Bank Limited has started its operation that is; the date of incorporation is March 14,
1983 under the license issued by Bangladesh Bank as the first private sector Bank in Bangladesh
with authorized capital of Tk. 1.75 Billion. The bank is listed with Dhaka Stock Exchange
Limited and Chittagong Stock Exchange Limited in 1986 as a publicly traded company for its
general class of shares.

The City Bank Limited serves its customers at home with 83 branches spread over the country
with total manpower of 1991. The Bank has expanded its services over the years, which covers
wide diversified areas of trade, commerce & industry. They have always tried to provide different
products and services to the customers through their wide and ever growing domestic network.

The Board of Directors of the Bank consists of 13 flourishing, alleged, experienced and wise
businessmen. The Chairman of this bank is Mr. Aziz Al-kaiser, who is a top leading businessman,
industrialist, pioneer personality & entrepreneur of private sector's Bank in Bangladesh. The
managing director is Mr. Kazi Mahmood Sattar a dynamic, nationally & internationally reputed
Banker but in 2007 he took the responsibility of chief executive.

City Bank’s authorized capital is Tk 1,750,000,000. Their paid up capital is Tk 1,188,000,000 and
reserves are Tk 1,686,366,986. They have total assets of worth Tk 48,755,403,081.

The Bank has achieved national & international recognition because of their significant
performance. In The Year 2000 The City Bank Limited was one of the 12 Banks Of Bangladesh
evaluated by "ASIA WEEK" among the 500 Banks in Asia for it's asset, deposit & profit. The
City Bank Limited also achieved the "Top Ten Company" award from the Prime Minister of the
People's Republic Of Bangladesh.

Credit Rating Information and Services Limited (CRISL), the premier rating agency of the
country reaffirmed rating of The City Bank Limited (CBL) at "A -" (pronounced single A minus)
in the long term and ST-3 in the short term on the position of December 31st 2006.

The above rating has been done on the basis of the banks' visible improvements in some of the
operational areas such as capital sufficiency, asset quality, operational efficiency, financial
performance etc.

The City Bank Limited has already introduced some new Banking products like duel currency
Credit Cards, ATM and Online services which has created attraction among the clients. The Bank

2
is going to introduce real time Internet, SMS and Phone Banking systems with all modern
delivery channels at an early date.

Vision of City Bank

The vision of City Bank is to be the leading bank in the country with best practices and highest
social commitment.

Mission of City Bank

City Bank has certain missions that they focus on achieving. These are as follows:

• To contribute to the socioeconomic development of the country

• To attain the highest level of customer satisfaction through extension of services by

dedicated and motivated team of professional

• 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 an enabling environment where innovativeness and performance is rewarded

Major Competitors of the bank

The City Bank Limited is the first private sector Bank in Bangladesh. Since 1983 it has been
operating successfully in Bangladesh. It is one of the First Generation banks. Other First
Generation banks are AB Bank Ltd, IFIC Bank Ltd, UCBL, National Bank Ltd and Islami Bank
Bangladesh Ltd.

Investment Portfolio: (Loans they provide)

3
Last year the City Bank invested Tk. 26,788,466,138/= in Private sector in Bangladesh. Among
this the biggest share of 60% was invested in various kinds of loans, 25% was given as cash
credits, 8% as overdrafts and only 7% was spent to buy different kinds of bills as investments.

If we see the total amount of investment invested by The City Bank in terms of significant
attention than we will see that the bank mainly provided their attention on consumer loans which
was 41% of the total loan that has been given. They also provide 29% loans to the industrial
sector. Conversely, one thing we notice is that they don’t have provided any amount of credits to
the company’s CEO and directors, although they could have given credits to them easily. But as
they are a customer friendly bank they have not done this. They tried to provide as much as and
big amount loans they can serve to their customer.

4
Again if we see from the industry sectors point of view then we can see that they have not
provided that much loans to SME business. Although they have provided 21% of its loans to the
borrowers of large and medium enterprises, they provided 41% loans to commerce and trade
sector, 8% loan to insurance, real-estate and service sector, 1% to transportation and
communication. And 29% loans they provided to other different sectors. Nonetheless, we can say
that commerce and trade sector getting the advantage from this bank.

Alarming fact is that The City Bank has provided 0% of its loans in agricultural, small and
cottage business. This is efficiently damaging for our country’s long term development and well
being. Because this bank contributed nothing to this sectors, where a huge amount of people
performing notably. So the bank should invest at least some amount of loans in this sector.

Major Borrowing: (Loan they collect)

The City Bank has borrowed cash in the year 2007 and they borrowed from the domestic
borrowing sources, not from the foreign sources. Actually this is a good sign that the bank
depending on the economy and thus contributing to it. The bank collected cash from Janata Bank
(88%) and DBBL (12%).

5
From the total borrowing of Tk. 8 50,000,000/=, Janata Bank Ltd. has provided TK. 7
50,000,000/= and Dutch-Bangla Bank Ltd has provided TK. 1 00,000,000/=. , which was an
unsecured borrowing. The borrowing was very short-term, which is only for one month.

Major types of financing

Working Capital Finance:

Overdraft

This is a convenient and flexible form of short-term financing for routine operating expenses and
overheads of the company.

Guarantees and Bonds

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

Short/mid term financing

Short Term Financing:

As the responsive player in market, customer may anytime need fund to utilize for a very short
time due to either emergency or short term projects.

6
In such case, City Bank is there to facilitate its customer. This can be a Short Term Loan or a
Short Term Revolving Loan. Customer can get it either for his/her inland business or cross-border
payment in foreign trade.

Mid Term Financing:

City Bank can also equip customer the required fund for a longer period. If any one worries about
fund requirement for a bit longer, ‘City Bank Term Loan’ will make him/her feel confident that,
he/she got a friend for this.

Project finance

City Bank has been very active in the project finance plan.

Project financing solutions:

1. Mitigate sponsor exposure to project risk.

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

3. Provide access to significantly longer tenor debt financings.

4. Create optimum financing structures (source of debt, currency, derivatives) that take
into account customer’s 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 customer’s 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.

7
Structured Finance

A leading provider of cost-efficient, lease-based and asset-based financing solutions to businesses

in Bangladesh, The city bank can create and tailor the right structured solutions for customer’s
business needs in order to enhance shareholders’ wealth and their market competitiveness.

These solutions include:

Structured financing solutions:

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

Syndications:

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

Local know-how:

The city bank intimate knowledge of the diverse industries as well as understanding and working
with regulatory bodies, means the bank can provide customer’s with a solution designed solely to
meet customer’s needs. The bank also partner its clients to arrange syndicated loan facilities for
project finance, aircraft finance, structured trade and acquisition financing including leveraged
buy-outs. The bank have been successful in loan capital raisings for financial institutions, real
estate development, hotels, telecoms, institutional banking and finance, public utility, oil and
petroleum, light manufacturing and food sectors.

8
Cash Management Activities

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.

City bank’s 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

City bank can help customers save time and money by reducing processing costs while providing
a value-added service to customer’s suppliers.

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

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

Collection Services

City bank have a comprehensive branch network and the local knowledge to help its customer
with lower costs and greater efficiency.The City Bank Collections Solution leverages the Bank's
extensive regional knowledge and widespread branch network across the markets to specially
tailor solutions for customer’s regional and local collection needs.

9
This Collections Solution, delivered through a standardized international platform, has the
flexibility to cater to customer’s local needs, thus enabling customer’s to meet their objectives of
reducing costs and increasing efficiency and profitability through better receivables and risk
management. The key components of the bank solution include the following:

Making customers partner:

The bank also partner its clients to arrange syndicated loan facilities for project finance, aircraft
finance, structured trade and acquisition financing including leveraged buy-outs. the bank have
been successful in loan capital raisings for financial institutions, real estate development, hotels,
telecoms, institutional banking and finance, public utility, oil and petroleum, light manufacturing
and food sectors.

Liquidity Management:

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

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 its 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, they have blended Shariah principles with its rich banking heritage of more than
150 years to provide banking services that support customer’s business while respecting their
beliefs.

10
The bank’s diverse range of Islamic Banking products are designed to give customer’s greater
flexibility while conducting business through Shariah-compliant process.

The City Banks Islamic Products

Bai Muajjal:

For financing procurement of raw material where goods are kept under customer’s custody, this
sort of loan is offered.

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

Forms of Deposits

Current Account

The bank’s current account meets the needs of individual and commercial customers through its
schedule benefit.

11
Minimum balance: Taka 5,000/-

Interest Rate: Nil

Savings Account

Minimum balance: Taka 500/-

Interest Rate: 6.50 %

City Onayash

City Onayash is a unique kind of savings account which calculates interest on customer’s daily
balance and pays interest to them every month. 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.

Interest Rate: 5.50 %

City Shomridhdhi A unique offer from City Bank

Customers will receive a hefty sum at the end of the term against their monthly deposit of small
installments. It's a perfect way to secure customer’s financial future!

Profitability Matrix:

Term Interest Rate

3 years 10.00 %

5 years 10.25 %

7 Years 10.50 %

10 years 11.00 %

12
City Projonmo

Financial safety for customer’s future generations backed by complete immense protection! City
Projonmo is a unique monthly deposit scheme that any one can open for his/her kids to safeguard
their future against all uncertainties and risks.

Profitability Matrix:

Rate Interest Rate

5 years 9.25

10 years 9.50

15 years 9.00

20 years 9.00

City Ichchapurun

Great opportunity to earn against customer’s savings every month! This product allows them to
earn interest and enjoy interest every month that accrues in customer’s fixed deposit account, no
matter what the term of the deposit is.

Profitability Matrix:

Term Fixed Deposit Interest Rate Monthly Interest

Amount (before tax)

3 Years Tk. 1 lac 11% Tk. 917.00

13
 5 Years Tk. 1 lac 11.5% Tk. 958.00

Types of Loans City Bank offers

City Drive

Owning a car is no longer a luxury. Car for some ones 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.

Features:

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

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

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

4. Loan tenor 12 to 60 months

5. No hidden charges

6. Competitive interest rate

7. Loan processing fee 1% of loan amount

Eligibility:

1. Age: 22 to 60 years

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

3. Experience: Business person/paraprofessional 1 year

14
 4. Monthly income: Minimum Tk. 30,000

City Solution

Dream Vacation? Worried about Son's admission to a foreign university? Medical treatment?
Daughter's wedding? House renovation?

Whatever the occasion or requirement may be, City Solution - any personal loan from City Bank
- is there to solve all customer’s problems and to fulfill all their dreams. One can access this
facility from the bank’s selected branches across the country.

Features:

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

2. Loan tenor 12 to 60 months

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

4. No hidden charges

5. Competitive interest rate

6. Processing fee 1%

Eligibility:

1. Age: 22 to 60 years

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

3. Experience: Business person 2 years

15
 4. Experience: Professional 1 year

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

self employed Tk. 25,000 and business person Tk. 30,000

Loan Take Over 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.

Eligibility:

1. Minimum 6 loan EMI repayment with existing bank

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

Benefits:

1. No processing fee

2. No extra cost for loan takeover

3. No processing fee for additional loan

4. 1% reduced from City Solution interest rate

City Muldhan

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

16
City Bank is going introduce a complete tailor made package which surely will meet customer’s
specific financial needs and services.

Features:

1. Loan amount ranging from Tk. 500,000 to Tk. 40,00,000

2. Competitive interest rate.

3. Flexible security arrangement.

4. Complete business solution.

5. Considerations of cash transactions besides bank statement.

6. Quick approval process.

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.

Features:

1. Loan amount ranging from Tk. 500,000 to Tk. 40,00,000

2. Competitive interest rate.

3. Flexible security arrangement

4. Quick approval process

5. Considerations of cash transactions besides bank statement.

City Shulov

17
A unique product to facilitate concerns engaged in manufacturing business. The product will
facilitate to meet up diversified needs to different manufacturing concerns.

Features:

1. Loan amount ranging from Tk. 500,000 to Tk. 40,00,000

2. Competitive interest rate.

3. Flexible security arrangement

4. Quick approval process.

5. Considerations of cash transactions besides bank statement.

18
The Environment and Marketing Strategy

The environment of a bank refers to all the physical and social characteristics of consumers
external world, including physical objects, spatial relationships, decorations of the bank or the
outlook of the bank from both inside and outside and the social behavior of the people around the
bank.

The City Bank has created and always does focus on the ambiance of the bank from both internal
and external perspectives. They are especially interested in the interpreted environment; also
called the functional or perceived environment since this is what influences consumer’s actions.
This is also due to the fact that each client has a unique set of knowledge, meanings and beliefs,
the perceived or functional environment that each customer will be somewhat different. They
primarily seek to understand the consensus interpretations of the environment shared by groups of
customers.

The environment can be analyzed at two levels: the micro and the macro environment. The macro
environment included the large scale broad environmental factors such as climate, economic and
political situations etc. City Bank however hardly deals with this level of environment, even
though their activities get hampered due to such changes. They mostly focus on the micro
environment which refers to the more tangible physical and social aspects of an individual
customer’s surroundings. For example, if the floor of the bank is dirty, then clients would not feel
like coming back to them. City Bank focuses on creating and offering exceptional physical and
social environment.

The physical environment includes all the nonhuman, physical aspects in which consumer
behavior occurs. Virtually any aspect of physical environment can affect consumer behavior. The
physical environment is divided into two parts: the spatial elements and non- spatial elements.
Spatial elements include physical objects like the brand, interior design etc. City Bank does focus
on some of the spatial elements like its interior design. They have created an environment which
is friendly, clean and soothing. The whole areas of the banks are well spaced. The cabins are
placed separately and in a modern way. There is enough space for people to walk around, waiting

19
space for clients are also there. In the head office, all the departments like the finance, marketing,
customer service etc are located in separate floors. The whole theme of City Bank is red and
white and it is focused and highlighted all around the bank. Separate counters have their own
queue space so that when many people are standing, it looks very organized. They focus on the
non- spatial elements of the environment as well. These are the intangible factors such as the
lighting, temperature, noise etc. City Bank looks very bright and vibrant. The illumination is not
dull; there is enough lighting and also centrally air- conditioned.

City Bank emphasizes on the social environment of the bank to great extent. The social
environment includes all social interactions between and among the general people. They have
very friendly employees who are very cooperative and always around to help the clients with
their required information. All of them are well skilled and can communicate very fluently in
Bengali and English language. This helps the people to communicate and understand better
regarding City Bank’s offerings and other queries.

City Bank has identified and is always on the process of further improving the social and physical
environment. This helps them to understand their customer’s affective, cognitive and behavioral
responses to their environmental factors and also their banking activities. They are always trying
to develop marketing strategies that modify their environment in order to stimulate, facilitate and
reinforce the desired behaviors.

Affect and Cognition:

Consumer researchers have long recognized that customer satisfaction is a dynamic concept, that
is, it develops over time and repeated purchases. However, little is known about how the

20
satisfaction judgment develops over time. This includes both judgments about how the
product/service performs in terms of product features (cognition), as well as judgments about
how the product/service makes the consumer feel (affect).

The impact of cognition on satisfaction increases as experience increases. The influence of affect
is highest initially but then decreases over subsequent experiences. Plus, these effects become less
pronounced when consumers’ experience with the product is inconsistent (there are both good
and bad experiences).

Affective states have a highly important, yet little understood influence on how people think
about, remember, and respond to social situations. Contributions from leading psychologists in
the field review and integrate the most recent work on the role of affect in social life. They offer
new insights on the fundamental links between affect and cognition, and report recent research
and theories illustrating how affective states can play a subtle and often subconscious role in
guiding peoples' thoughts, memories, judgments, attitudes and behaviors in social situations. The
insights offered in this book have major implications for several applied fields where the links
between feeling, thinking and behavior are of interest, such as clinical, counseling, health and
organizational psychology.

A Cognitive System is one that utilizes psychologically plausible computational representations

of human cognitive processes as a basis for system designs that seek to engage the underlying
mechanisms of human cognition and augment the cognitive capacities of human users, not unlike
a cognitive prosthesis.

The Relationship between the Affective and Cognitive Systems.

21
 The City
Bank

Affective System Cognitive System

Emotions
Feelings Knowledge
Moods Meanings
Evaluations Beliefs

Here for the City Bank’s consumers affective system is mostly learned so that the emotion is less.
When a consumer gets good service from the bank he or she will start feeling good. While
consumers go to the City Bank outlets for transaction or maybe go to ATM booths the
environment might affect both way. If there is a long queue and the management is not effective
then the consumers might get bored. But if the consumers get efficient service then they will be
relaxed while getting the service from the City Bank.

City Bank gives its product knowledge to their consumers through their advertisement. Even the
consumers can learn about the products from any branch of the bank or from their website. It
gives certain knowledge about City Bank’s retail products or services for which consumers gain
product knowledge. City Bank’s main motto – “City Bank – making sense of money” implies that
City Bank is here to give you the best service and deal with all the necessary transaction for you
valuing your needs. City Bank’s retail banking motto is “City Retail – add a little city to your

22
life” means that in this cosmopolitan lifestyle City Bank understands what is necessary for your
city life and it can give you some city spice to your life. When the consumers implies the motto
of City Bank they have got a positive impression about City Bank and start believing that City
Bank is a good selection for banking. Some people even think of City Bank as a multinational
bank after City Bank has launched their new marketing strategy.

Means End Chain:

Means End Chain links consumers’ knowledge about product attributes with their knowledge
about consequences and values. The MEC emphasizes why and how products/services are
important in individual’s life.

• Four levels of means-end chain

– Attributes
– Functional consequences
– Psychosocial consequences
– Values

The Actual Model:

Functional Psychological
Attributes Values
Consequences Consequences

23
The Means End Chain for CITY BANK:

Functional Psychological
Attributes Values
Consequences Consequences

Round the
clock cash
Visa Classic High Self-
Dual withdrawal Be Comfortable
esteem
facility

Attention, Comprehension and Exposure

In the case where consumers’ exposure towards City Bank is the result of intentional search; City
Bank took numerous steps to facilitate intentional exposure. The new restructuring, include
different new schemes & services focusing on different segment of consumers & potential
consumers, modernizing the total system to give fast & efficient customer services & educate
employees in extensive consumer service & finally studying consumers’ behaviors to anticipate
consumers’ needs & device strategies to meet them.

City Bank also focuses heavily on maximizing accidental exposures to the appropriate target
groups of consumers. City Bank identifies prime location for brunches & ATM booths to
maximize accidental exposure. The bank currently has 83 online branches spread across the
length & breadth of the country that include a full 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.

Once consumers are exposed to the marketing information, whether or through intentional or
accidental exposure, the process of attention comprehension begin. City Bank’s restructure of the
total system new logo along with the new pay off line facilitates the attention process. City

24
Bank’s new advertises focuses on increasing consumers’ and potential consumers’ involvements
by focusing on “you first” messages. City Bank’s advertises and all the other promotion vividly
shows its pay of line- “making since of money”- and the meaning it implies to the consumers.

Another step to seek the attention of consumers and meet the obligation towards the country as a
part of this society is to invest on corporate social responsibility. City Bank is one of the leading
national bank to include corporate social responsibility in the new restructured strategy. City
Bank took projects on the beautification of the Dhaka city streets. Chiefly, the major streets to
make the city clean and beautiful. Finally, the level of involvement a consumer feels is
determined by the means-end-chains activated from memory and related active responses. So
City Bank engages in multiple corporate social responsibilities such as, beautification of Dhaka
city, financing renovation and beautification of major streets, involving on charities for poor
children’s and so forth.

These aspects of the exposure situation or environment can affect consumers’ opportunity to
comprehend marketing information’s. City Bank also focuses on differentiating exposure for the
expert and novice consumers. Because the ability to comprehend information for different
consumers varies according to their knowledge in memory.

City Bank to considers the characteristics of the consumers and potential consumers and the
environment in which consumers are exposed to the information of the bank, and acts accordingly
which reflects on their promotions.

Hypothesis:

City Bank’s recent restructuring grabbed attention of consumers, account holders & other people
alike. They came up with different new schemes & services. City Bank came up with a new logo
& a new pay off line. These are all part of that restructuring to turn around the bank & put it in a
respectable position as one of the top in consumer banking in the country. They are quite a
competitor in the market. AB Bank went through a restructuring recently, with new logo, new
schemes & modernization. That’s why we decided to find out which bank consumers thinks as

25
successful among these two. We came up with a hypothesis that City Bank restructured &
modernized itself & rebuild its image successfully then AB Bank.

Findings:

After analyzing survey questionnaire and developing frequency table we have found the
followings:

Question: 1

26
Are Offers of different deposit accounts & its services, important to you, while opening an
account?

Deposit accounts
F
R 14
13
E 12
Q 10
U 8 8
E 6
N
4
C 3
2 2 2
Y 1 1
0 0 0 0
0 1 2 3 4 5 6 7 8 9

RANGE

Question: 1(a)

How would you evaluate AB Bank in terms of deposit accounts (offers)?

AB Bank

12

FREQUENCY 10 10
8 8
6
5
4
3
2 2
1 1
0
0 1 2 3
-3 -2 -1

RANGE

27
Question: 1(b)

How would you evaluate City Bank in terms of deposit accounts (offers)?

City Bank

16
15
14
12
FREQUENCY
10
8
6 6
5
4
2 2
1 1
0 0
0 1 2 3
-3 -2 -1

RANGE

Question: 2(a)

How would you evaluate AB Bank “Car loan” (auto loan)?

28
 AB Bank

10 9
8 8
FREQUENCY
6 6

2 2 2

0 0 0
0 1 2 3
-3 -2 -1

RANGE

Question: 2(b)

How would you evaluate City Bank “City Drive (auto loan)”?

City Bank

12
11
FREQUENCY 10 10
8
7
6
4
2
1 1
0 0 0
0 1 2 3
-3 -2 -1

RANGE

Question: 3(a)

29
How would you evaluate Online banking service of AB Bank?

AB Bank
14
13
12
FREQUENCY
10
8 8
6
5
4
3
2
1
0 0 0
0 1 2 3
-3 -2 -1

RANGE

Question: 3(b)

How would you evaluate City Bank online banking service?

City Bank
12

FREQUENCY 10 9 10
8
6
5
4 4
2 2
0 0 0
0 1 2 3
-3 -2 -1

RANGE

30
Question: 4

Is Debit or Credit card service important to you, while making a decision of opening an account?

Debit & Credit Cards

12

FREQUENCY10 10
8
7 7
6
4
2 2
1 1 1 1
0 0 0
0 1 2 3 4 5 6 7 8 9

RANGE

Question: 4(a)

How would you evaluate AB Bank’s debit & credit card service?

AB Bank

12
11
FREQUENCY10 9
8 8
6
4
2
1 1
0 0 0
0 1 2 3
-3 -2 -1

RANGE

31
Question: 4(b)

How would you evaluate City Bank’s debit & credit card service?

City Bank
14
13
12
FREQUENCY
10 9
8
6
5
4
2
1 1 1
0 0
0 1 2 3
-3 -2 -1

RANGE

Question: 5

Is the Brunch location important to you?

32
 Brunches

12
11
10
8 8
FREQUENCY

6
4
3 3
2 2
1 1 1
0 0 0
0 1 2 3 4 5 6 7 8 9

RANGE

Question: 5(a)

How would you evaluate AB Bank in terms of Brunch location & number of brunch?

AB Bank

12
11
10
FREQUENCY
8 8
7
6
4

2 2
1 1
0 0
0 1 2 3
-3 -2 -1

RANGE

Question: 5(b)

How would you evaluate City Bank in terms of Brunch location, & number of brunch?

33
 City Bank

14
13
12
FREQUENCY
10 10
8
6
5
4
2
1 1
0 0 0
0 1 2 3
-3 -2 -1

RANGE

Question: 6(a)

How would you evaluate AB Bank’s customer service & environment?

AB Bank
14
12 12
FREQUENCY 11
10
8
7
6
4
2
0 0 0 0 0
0 1 2 3
-3 -2 -1

RANGE

34
Question: 6(b)

How would you evaluate AB Bank’s customer service & environment??

City Bank

20
17
15
FREQUENCY

10 8
5 5

0 0 0 0 0
0 1 2 3
-3 -2 -1

RANGE

Question: 7(a)

What do you think about AB Bank’s new logo & Pay off line & How would you evaluate impact
of the bank’s new image?

35
 AB Bank

16
15
14
12
FREQUENCY
10 9
8
6
5
4
2
1
0 0 0 0
0 1 2 3
-3 -2 -1

RANGE

Question: 7(b)

What do you think about City Bank’s new logo & Pay off line & How would you evaluate impact
of the bank’s new image?

City Bank

20
FREQUENCY 16
15

10
7
5 5
2
0 0 0 0
0 1 2 3
-3 -2 -1

RANGE

Question: 8(a)

36
How would you evaluate the offers & policies regarding AB Bank’s foreign remittance?

AB Bank
14
12 12
FREQUENCY
10 10
8 8
6
4
2
0 0 0 0 0
0 1 2 3
-3 -2 -1

RANGE

Question: 8(b)

How would you evaluate the offers & policies regarding City Bank’s foreign remittance?

City Bank

16
FREQUENCY 14 14
12
10
8
7
6 6
4
2 2
1
0 0 0
0 1 2 3
-3 -2 -1

RANGE

Question: 9(a)

37
How would you evaluate AB Bank in terms SMS Banking service?

AB Bank

14
13
12 12
FREQUENCY
10
8
6
4
2 2
1 1 1
0 0
0 1 2 3
-3 -2 -1

RANGE

Question: 9(b)

How would you evaluate City Bank’s SMS banking service?

City Bank

16
14 14
12
FREQUENCY
10 10
8
6
4
3
2 2
1
0 0 0
0 1 2 3
-3 -2 -1

RANGE

Question: 10

38
After considering all the factors please rate each of the Banks individually out of 100 marks.

OVERALL RESPONSE OF AB BANK

100
90 90 90 90
85 85 85
80 80 80 80 80 80 80 80 80
75 75 75
FREQUENCY 70 70 70 70 70 70
60 60
50 50
40 40 40 40

20
0
1 2 3 4 5 6 7 8 9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

RANGE

An average mark of AB Bank is 72.7

OVERALL RESPONSE OF CITY BANK

100
90 90 90 90 90 90 90 90 90
FREQUENCY 85 85 85 85
80 80 80 80 80
70 70 70 70
65 65
60 60 60
50 50 50 50 50
40

20
0
1 2 3 4 5 6 7 8 9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

RANGE

An average mark of City Bank is 75.0

Majority of our respondents give higher marks to City Bank Ltd than AB Bank Ltd.

39
Multi-Attribute Attitude Model:

Parameter:

1. All types of deposit accounts

2. Auto loan scheme
3. Debit & Credit cards
4. Brunch
5. Customer service & Environment
6. On line banking
7. Logo & pay off line
8. SMS banking
9. Foreign remittance
Based on the above parameters we have evaluated consumers’ behavior towards these banks, City
Bank Ltd. & AB Bank Ltd. We have used Multi-Attribute Attitude Model, which is given below;

Here,

Ao =Attitude toward the objective

bi =Strength of the belief that the object has attribute

ei =evaluation of attribute.

40
 n=number of salient belief about the object.

Using this Multi-Attribute Attitude Model we tried to find out the consumer evaluation and
strengths of the salient belief about City Bank Ltd. & AB Bank Ltd.

Prove/ Disprove Hypothesis:

The final finding of the survey from our frequency data table and attribute model result, proved
our null hypothesis that City Bank restructured & modernized itself & rebuild its image
successfully then AB Bank.

41
 Need flexible banking
F
ig: Low interest rate
Problem Recognition
High deposit growth

Reliable and recognized banks

Consumer Decision making process
Factors influencing consumer behavior

BRAC & DBBL bank with strong ATM

service
CULTUR
Search for alternative solutions
E EBL with better online service
Culture One Bank with low interest rate
Sub Culture

Social Class

City Bank provides both ATM service

SOCIAL and online banking and they also
Evaluation of Reference
alternatives
Group provide competitive interest rate
and good deposit scheme. And they
Family
also have good number of brunches
Roles & Status all over the country.

PSYCHOLOGI
PERSONAL CAL
Go for City Bank! THE
Purchase Age & Life Cycle Stage Motivation

Occupation Learning CONSUMER

Economic Circumstances Perception

Beliefs &Attitudes

High end services make the

Post purchase use and consumers to become brand loyal.
reevaluation of chosen Consumers might not feel that not
alternatives sufficient numbers of ATMs are
available.

42
 Figure: Factors affecting consumer behavior

CULTURE:
Culture is a powerful force in regulating human behavior. Although many researchers have
sought to understand the influence of culture on consumer behavior, most of their attempts were
made in a piecemeal basis (i.e. examining effects of certain aspect of culture on a specific aspect
of consumer behavior). Relatively little attempt has been made to develop a general framework of
cultural influence on consumer behavior that examines effects of various aspects of culture on
various aspects of consumer behaviors at the same time.

1. Culture in different region within Bangladesh is shaped by unique characteristics. People

talk mostly in Bengali but the accent is somewhat different. Moreover, English is
becoming a second language for Bangladeshi people.
2. The Religion is predominantly Islam but there are Hindus, Buddhist and Christians living
all over the country.
3. There are many tribes in hill tracts of Bangladesh. They have their unique language and
starting to get educated.
4. The culture is very open towards change.
5. There are mainly three social classes – upper, middle and Lower. But there is another
emerging class which is created in last century, the working class.
6. There are three groups based on income and they are down scale, upscale and middle
income.
7. The respect towards elderly people is very high.
8. The family and friends plays a big role in individual decision-making.
9. The literacy rate is very low.
10. Crime rate is very high and in corruption Bangladesh is the leader.
11. Most of the families are extended type and prefers sharing things.

43
 Social Class

Language

Cultural
Religion
Age
Norms
and Value
system
Occupation
Communit Income
y level

Figure: Summary of our culture

44
Recommendation

City Bank’s should concentrate more on their ATM services and other consumer outlets. It is
better for them if they start their online banking system fully functional as soon as they can.
Besides City Bank will also have to concentrate on their marketing strategy as some people think
it is not a local bank but a multi national bank. This will lead some retailers to decide not to bank
in there as against multinational banks consumer feel inferiority complex sometimes.

Conclusion

“To enjoy the trust and confidence of the customers through cultivation of relationship banking”
–is the future plan of The City Bank Limited, by keeping this in front of them, they are
committed to giving real efforts. They want to secure good customer relationship with each and
every customer.

The City Bank Limited has already introduced some new banking products like duel currency
Credit Cards, ATM and Online services which has created attraction among the clients. The Bank
is going to introduce real time Internet, SMS and Phone Banking systems with all modern
delivery channels at an early date. By doing their work properly and introducing new kind of
banking tools The City Bank is contributing a lot in the economy of the country.

45