NCC Bank Is Providing Both General Banking and Credit Banking. So, They Provide Different

National Credit and Commerce Bank Ltd. bears a unique history of its own. The organization started its journey in the financial sector of the country as an investment company back in 1985. The aim of the company was to mobilize resources from within and invest them in such way so as to develop country's Industrial and Trade Sector and playing a catalyst role in the formation of capital market as well. Its membership with the browse helped the company to a great extent in this regard. The company operated up to 1992 with 16 branches and thereafter with the permission of the Central Bank converted in to a fully fledged private commercial Bank in 1993 with paid up capital of Tk. 39.00 crore to serve the nation from a broader platform.

NCC Bank is providing both general banking and credit banking. So, they provide different types of products for its customers, general and credit banking system. My topic of this project is about NCC Bank’s products they provide and the strategy they have to satisfy the customer which can help the bank to lead towards profit.

Financial Institutions have historically have been distinguished by the types of services they provide. In recent years Financial Institutions have diversified their services by creating new subsidiaries that perform additional services or by merging with other types of financial institutions. The result has been the creation of financial conglomerates, composed of various units offering specialized services. Diversification also offers benefits to financial institutions.

National credit and commerce Bank Limited was incorporated in Bangladesh as a banking company. I worked in their Jatrabari Branch as an intern. This gives me the opportunity to know more on different aspects of the company including the marketing strategy they are following. So, I prepare my internship report on marketing strategy of NCCBL.

Objectives of the Report:

1. To understand how the banking transactions take place in the banking sector of Bangladesh.

2. To observe the authorities, tasks & responsibilities of the bankers.

3. To get familiar with the banking rules and regulations.

4. To know the overall banking system of NCCBL

5. To understand the Financial and Accounting techniques of NCCBL.

6. To have the idea about the communication between the branch office and head office.

7. To better understand about the foreign exchange activities.

8. To observe the current marketing activities of NCCBL and evaluate the strategies.

9. To provide idea of a new product with the marketing plan.

Methodology of the Study:

This report is prepared by two sources:-

1. Primary Sources.

2. Secondary Sources.

For my primary research, I conducted a survey among the customers of NCC bank Ltd and its employees. To do this research I designed a questionnaire with different types of questions so as to get a range of useful data which helped me to answer my research questions. For conducting survey I took the sample size 50. I also took interview of different people related to the NCC Bank Ltd. Top level employees are among them.

For my secondary research I used data from website. For finding materials on the web, I used the standard search engines such as Google or Wikipedia as well as large reference sites and news sites. I also go for different business journals and newspapers for information.

Significance of the Study:

This topic is very important for the people who are involved with banking especially for NCC bank Ltd. This project work will help them to understand about their way of marketing, whether they are successful or not. Marketing for bank is very important because customers must have the idea about the products NCC Bank is providing, without banking its quite hard. So, through this project I tried to evaluate the marketing strategy of NCC Bank Ltd.

Limitation of the Report:

In brief, I faced following limitations during the time of preparing this report:

i. The bank was not eager to divulge information regarding their service delivery and policy information.

ii. The information used in the report was limited to the Jatrabari Branch, Dhaka only.

iii. The availability of adequate data was a major problem in making the report.

iv. There were a few questions which were not exactly answered.

v. Sometimes the customers were in rush, so they didn't want to provide information willfully.

vi. Time frame for the research was very limited.

vii. Large scale research was not possible due to constraints and restrictions posed by the organization.

viii. The research covers only the customers of Dhaka city.

ix. To protect the organization’s confidentiality, some parts of the report are not in depth.

Hypothesis:

H0: NCC Bank’s marketing strategies for its products are not satisfying its customers and have positive towards profit trends.

H1: NCC Bank’s marketing strategies for its products are satisfying its customers and have negative towards profit trends

Banking Sector in Bangladesh

Definition of Bank:

Whoever, being an individual firm, company or corporation generally a deal in the business of money and credit is called a bank. Banker means a person transacting the business of accepting for the purpose of lending or investment of deposit of money from the public repayable on demand or otherwise and withdrawal by cheques, drafts or otherwise. The purpose of banking is to ensure transfer of money from surplus unit to deficit units. Banks in all countries work as the repository of money. The general public deposit money in the bank for safe custody as well as to earn interest on it.

Entrepreneurs try to obtain money from the banks as project loan for long-term investment. They also obtain working capital from the bank to run their business smoothly. Banking sector these owe a great deal to the deposit holders on the one hand and the entrepreneurs on the other. They are expected to play the role of friend, philosopher and guide for the deposit holders and as wells entrepreneurs.

Since liberation, Bangladesh passed through fragile phases of development in the Banking sector. Some banks were nationalized in the post liberation period to save the institutions and the interest of the depositors. Those handing the banking sector have borne the burden of putting banks on reliable footings. Despite all that was done, some elements of irregularities appeared. Yet the performance of public sector management of banks left some negative effects in the money market in particular and the economy in general. The agility among the borrowers manipulates the banking sector as a whole. In effect, a default culture among other effects appeared on the scene.

The opening of private and foreign participants to the banking sector was intended to obtain desirable results from banking. The authorization of private bank was designed to create competition among the banks and competition in the form of efficiency within and the productivity in enterprises funded by banks. Unfortunately, for the people at large banking sector is yet to obtain the credit for efficiency, curability and growth.

Banking in Bangladesh Perspective:

Banking is the backbone of national economy; all sorts of economic and financial activities revolve round the axis of the bank. As the industry produces goods and commodities, so does the bank creates and controls money market and promotes formation of capital. From this point of view, ‘banking’ a technical profession can be termed as industry. Services to its customers are the products of banking industry besides being a pivotal factor in promoting capital formation in the country. As all economic and fiscal activities revolve round this important "Industry', the role of banking can hardly be over emphasized.

Circumstances being such, it becomes imperative to find out the role of banks now playing in the country and analyze its operational aspects so as to ascertain the importance of this delicate financial sector and its overall impact on our national economy. To ascertain the role of banks and to analyze its operational aspects and its overall impacts on our national economy a thorough study as to its distribution, expansion and contribution is essential to comprehend its past, present and future bearings for the growth and development of the banking sector of the country. In the global context, the role of banks is far-reaching and more penetrating in the economic and fiscal discipline, trade, commerce, industry, export and import all carried through the bank. Banks are the only media through which international trade and commerce are being carried out and entire credit transactions, both national and international.

Banking Scenario of National Credit and Commerce Bank Ltd. (NCC Bank Ltd.):

NCC Bank Limited has been performing continuous progress in all areas of business including deposit collection, advance making and profile earning drive. In the year 2004 NCC Bank has been able to collect deposit of Tk. 16606.92 crore, registering 11.79 per cent growth. The growth in advance and profit was 18.36 per cent and 15.28 per cent respectively. NCC Bank in 2004 invested Tk. 1521.11 crore indifferent industrial and business enterprise against Tk. 1285.08 crore in 2003, registering 18.36 per cent growth the growth in profit of the bank in 2004 is 15.28 per cent by earning gross profit of Tk. 72.04 crore. The gross profit was Tk. 62.49 crore in 2003.

The bank bears a history as an investment company, which upgraded as a bank in 1985. The authorized capital of the bank remain unchanged at Tk. 750 million after inception but the paid-up capital stood at Tk. 607.81 million in 2004 as against Tk. 552.55 million in the previous year. The bank maintained the Capital Adequacy Ratio at 9.01% of risk-weighted assists. The ration of classified loans to total loans was 9.75 during 2003. The bank introduced some collateral free credit products under its small loans program for various sections of people which received tremendous response from the customers. Such loans have good recovery percentage.

With a view to patronizing Agro-based sector, the bank also extended credit facility to the North Bengal area of the country for maize cultivation, which brought tremendous result and received wide acclamation. Under this program a good number of marginal and small farmers of Dahagram and Angorpota the most remote Bangladesh territory, connected through an Indian corridor, are now farming maize. Not only those satellite communities, NCC Bank is offering a total of 1,600 farmers in Lalmonirhat district maize loan amounting Tk. 27.20 million this year.

NCC Bank started housing finance from last year and has approved Tk. 500 million in housing loan within last four months. Honoring the increasing demand of lease finance NCC Bank is going to open a separate Lease Finance window very soon. Total number of branches of the bank was 48 as on December 31, 2006.

The bank has computerized its operation over the country which is called "Online Banking". The customers are getting the benefit of ATM services located at Dhaka, Sylhet and Chittagong. The Bank has been launch Credit Card recently, necessary ground works was under way to complete the job shortly.

Historical Background of NCC Bank Ltd.:

National Credit And Commerce Bank Limited (NCCBL) is a banking company registered under the company Act 1994 as a private commercial Bank. Before launching baking transactions it was established as an investment company at 25thNovember 1985 in the Name of National Credit Limited. It is converted into a scheduled bank because of many restrictions in both collection and disbursement of fund while it was an investment company. During conversion period all types of transaction were closed for about 14 months from 22nd April 1992. After obtaining permission from the Government of the People’s Republic of Bangladesh and Bangladesh Bank, the investment company National Credit Limited, was converted into a fully fledged Commercial Bank. It started its banking operation on the 17th May, 1993 with 16 branches in the name and style of National Credit And Commerce Bank Limited. Now it has 53 branches all over Bangladesh.

Since its inception NCC Bank Ltd. has acquired commendable reputation by providing sincere personalized service to its customers in a technology based environment.

The Bank has set up a new standard in financing in the Industrial, Trade and Foreign exchange business. Its various deposit & credit products have also attracted the clients-both corporate and individuals who feel comfort in doing business with the Bank.

Mission

To mobilize financial resources from within and abroad to contribute in Agriculture's, Industry & Socio-economic development of the country and to play a catalytic role in the formation of capital market.

Vision

To become the Bank of choice in serving the Nation as a progressive and Socially Responsible financial institution by bringing credit & commerce together for profit and sustainable growth.

Objective:

· Quality earning generated in core markets.