6 Final Body Part EBL

8/2/2019 6 Final Body Part EBL

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Satisfaction level of Cor orate Customers in the context of Eastern Bank Limited

In today's world, education is the imperative tool for understanding the real world and applyingknowledge for betterment of the society as well as in Business Sector. From the education session the

theoretical knowledge is obtained from various courses throughout the programs, which is only the half

way of the subject matter. Practical knowledge has no alternative. The perfect coordination between

theory and practice is of paramount importance in the context of modern business Graduates to get 12

weeks practical experience, which is known as "Internship Program". As a student of Bachelor of Business

Administration BBA, North South University, every student has to conduct a practical orientation i.e.,

Internship on any organization for fulfilling the requirements of the BBA program. The main purpose

of the program is to know the real world situation and to get a glimpse of the corporate culture. In this

regard, I have the opportunity to submit the report from my experience while working as Internee in

Eastern Bank Ltd. Only theoretical knowledge without any practical experience makes a person sterile.

On the other hand a person having practical experience but no theoretical exposure keeps him blind. The

internship program is designed to overcome such sterility. This program gives the chance to fulfill the

theoretical knowledge that is acquired from class lectures, books, journals etc. in the practical

settings. Here, I got an opportunity to realize the relevance and usefulness of the classroom learning

and day to day operational experience in EBL Corporate Banking.

Today in Bangladesh, one of the most competitive industries present is the Banking industry. This

industry is taking over the country by rage. There are about 49 non-commercial (NCB) and Private

commercial banks in Bangladesh. Each bank is offering vast choices of products and service to the

customers. Thus customers have the independence to switch from one bank to another without

hesitation. The objectives of the study are stated below:

Prime objective of my study was to find out the satisfaction level of the corporate

customers of Eastern Bank Limited.

Secondary objective was finding out the relationship between clients satisfaction and

loyalty towards EBL.

As an outcome of the prime objective, I tried to notice the specific areas of

dissatisfaction of the Customers.

1. INTRODUCTION

1.1 Origin of the Report

1.2 Objective of the Research


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This report renders a close analytical look at the stability of corporate customer satisfaction and loyalty

in relation to service quality. The position of Eastern Bank limited is very impressive regarding the

position of other banks of the same time. But in this edge of competition, it is very difficult to keep the

leading edge intact. The bank needs to come up with new ideas to remain competitive. It must keep their

customers satisfied. So, it is very important for EBL management to know whether their corporate

clients are satisfied or not. If the clients are not satisfied, EBL can specify the zones of dissatisfaction

and take necessary actions to remove the dissatisfactions.

Hence, I decided to work on this topic.

Conducting a research is one of the most significant aspects of marketing. Here for the project, I have

chosen to conduct a research to find out whether the corporate clients are satisfied or not to the

service provided by the Eastern Bank Ltd. As major portion of my research is about corporate

customer satisfaction, therefore, measuring the service quality is the key to get the job done. Researchers

and managers of service firms concur that service quality involves a comparison of expectations with

performance. Hence, my hypothesis is:

H0:The corporate customers ofEastern Bank Limited are not satisfied with the service.H1:The corporate customers ofEastern Bank Limited are satisfied with the service.

1.5.1 Research Design

Primary Data: It is obvious that the research will require many primary data. Interviews will be

conducted on the managers of the bank for insights and clarification. The clients of the bank will also be

interviewed, as they are one of the primary data sources. A survey will be conducted on the target group

to find out about problems directly related to the research. I plan to supply them questionnaire to be

filled out as well as read them out whenever needed and explain if any clarification is required.

1.4 Research Hypothesis

1.3 Significance of the Research

1.5 Methodology of the Research


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Secondary Data: For the organization part of the report, many secondary resources will be used. This

will provide a theoretical basis of the report. Such data will be collected mainly from the bank as well as

the Internet. As for secondary resources, I would use relevant journals and various publications of EBL.

In addition, I would like to collect data from the NSU library, newspaper and the Internet. Also, some of

the published statistics by the Bangladesh Bank and the Eastern Bank (EBL) would be used.

1.5.2 Sample Design

In order to conduct the survey efficiently and obtain accurate results, I had to choose the sample

appropriately. Several customers were used for this survey. Therefore, for the purpose of my study and

convenience I have decided to select a total sample size of 100 corporate clients from Gulshan Branch.

1.5.3 Data Analysis

From time to time, I carried out analysis on the data collected from the surveys. After collecting the data

I used various types of charts and tables to identify whether relationships exist between the measured

variables or not. These included Chi-square, T-Test, One way ANOVAs and Regression test, analysis.

Beside it I conducted a hypothesis testing to verify which variables had most influence on service

quality. For this research SPSS version 15 was used as the statistical data analysis tool as it offers

greater flexibility in data analysis and visualization.

The study was limited by a number of factors. Firstly, the research was limited mainly at Gulshan

Branch of the bank. Secondly, sample size was very small to present the proposed scenario. It is never

possible to obtain 100% accurate data since the survey will be done on a set of sample, not the entire

population. Thirdly, time constraint led to get narrower outcomes.

1.6 Limitations of the Research


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The emergence of Eastern Bank Limited in the private sector is an important event in the banking

industry of Bangladesh. Eastern Bank Limited started its business as a public limited company on

August 08, 1992 with the primary objectives to carry on all kinds of banking business in and outside of

Bangladesh and also with a view to safeguard the interest of the depositors of erstwhile BCCI [Bank of

Credit and Commerce International (Overseas)] under the Reconstruction Scheme, 1992, framed by

Bangladesh Bank. In 1991, when BCCI had collapsed internationally, the operation of this bank had

been closed in Bangladesh. After a long discussion with the BCCI employees and taking into

consideration the depositors' interest, Bangladesh Bank then gave the permission to form a bank named

Eastern Bank

Limited which would take over all the assets, cash and liabilities of erstwhile BCCI in Bangladesh, with

effect from August 16, 1992. So, it can be said the EBL is a successor of BCCI. EBL started its business as

a scheduled bank with only four branches, which included Principal Branch, Dhaka; Motijheel Branch,

Dhaka; Agrabad Branch, Chittagong and Khulna Branch. EBL started its business with motto to

grow as a leader in the banking arena of Bangladesh through better counseling and efficient service toclients. EBL resumed its operational activities initially with an authorized capital of Tk. 1000 million,

divided into 10 million shares of Tk. 100 each and paid up capital of Tk. 310 million. The initial

shareholders were the NCBs, various govt. agencies, and some of the depositors who had agreed to

accept shares in the new bank in lieu of their deposits. The first Board of Directors of EBL constituted

under govt. supervision, consisted of 7 directors from various business and professions. Eastern Bank

Limited was under government control until the end of 2000 and therefore, there were lots of

deficiencies in the Bank's management. In 2001, the board of directors brought in new professional

management from various foreign banks who have been trying to modernize the bank ever since.

2. Organizational Overview of the Eastern BankLimited

2.1 Emergence of EBL


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Eastern Bank Limited (EBL) is one of the modern, fully online and technologically superior private

commercial Banks in Bangladesh. Eastern Bank markets a wide range of depository, loan and card

products. These products include different types of Savings and Current Accounts, Personal Loans, Auto

Loan, Debit Card, Pre-paid Cards, Internet Banking, Treasury, Syndication, Corporate Banking and

SME Banking services through a network of branches and centers countrywide. From Student

Banking to Priority Banking to Platinum card EBL has almost all banking products in its repertoire.

Eastern Bank has its presence in 11 major cities/towns of the country including Dhaka, Chittagong,

Sylhet, Khulna and Rajshahi. The customers are served through a network of 49 Branches, 74

ATMs and 6 Kiosks countrywide. Tracing its origin back to 1992, EBL is serving the individual and

corporate clientele alike with remarkable success offering innovative banking services since then.

Some significant matters about EBL are:

EBL is the first bank in Bangladesh to go for online.

It provided the first "Green Loan" in Bangladesh in Solar Panel manufacturing plant

which will contribute to transform the lives of 1 million people of the most remote and

off-grid areas by lighting up their homes.

EBL is the first ever local bank to finance Aircraft purchase deal of Biman Bangladesh

Airlines. Prior to this, only multinational banks used to finance such projects.

It generates highest profitability per employee in Bangladesh Banking sector.

This Bank launched first ever Bank- sponsored Mutual Fund in Bangladesh.2.2.1 Vision

The vision of Eastern Bank Limited is to become the bank of choice by transforming the way they do

business and developing a truly unique financial institution that delivers superior growth and financial

performance and be the most recognizable brand in the financial services in Bangladesh.

2.2.2 Mission

EBL will deliver service excellence to customers, both internal and external. EBL will ensure to maximize shareholders value.

EBL will constantly challenge their systems, procedures and training to maintain a

cohesive and professional team in order to achieve service excellence.

EBL will create an enabling environment and embrace a team based culture where

people will excel.

2.2 Profile of EBL


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2.2.3 Objectives

Maximization of profit along with the benefits of employees is the main objective of the bank. In

addition, the other objectives are

To be one of the leading banks of Bangladesh in terms of ROE and ROE

To be the market leader in high quality banking products and services

Achieve excellence in customer service through providing the most modern and

advanced state-art technological in the different spheres of banking

To reduce the burden of nonperforming assets

Cater to a broader and differentiated segment of retail and wholesale customers

To grow its credit extension service to the commercials as well industrial sector

To increase its diversification of loan portfolio and geographical coverage

To reduce present operating expense further so as to increase earning before tax

2.2.4 Values

EBL has six core values which the bank upholds in ever action. They are:

Service excellence

Openness

Trust

Commitment

Integrity

Responsible Corporate Citizen

2.2.5 Strategic Priorities of EBL

Focus on asset quality.

Reduce cost of deposit by changing the mix.

Strengthen cost control measures to reduce cost.

Improve service quality by realigning or changing structures and processes.

Exert all-out effort to recover assets that are classified and written off

Emphasize on businesses that offer better risk adjusted return

Diversify corporate loan portfolio

Put more emphasis on Corporate Social Responsibility (CSR)

Maximize shareholders value.


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Like any other business organization, all the major decisions in EBL are made by the top management

committee. The board mainly establishes the objectives and policies of the bank. There are three (3)

committees of the board for different purposes:

2.3.1 Executive Committee

This committee is comprised of four non-executive Directors and Managing Director of the bank and

the functions and responsibilities of this committee is to Establish and periodically review the bank's

overall credit and lending policies and procedures, develop and implement uniform and minimum

acceptable credit standards for the bank, new credit proposal assessment and approval etc.

2.3.2 Audit Committee

The main objective of this committee is to assist eh Board of Directors with regard to the audit of

financial reports, management reports by external auditors, internal controls and internal audits.

2.3.3 Management Committee

The EBL Management Team or Management Committee (ManCom) comprises of a group of

eleven people and each of them comes with an international working background and are committed in

leveraging their experiences to take EBL to greater heights by ensuring top line revenues with dynamic

capabilities.

Other than the MD and CEO, the remaining ManCom Members each head a function

Consumer and SME Banking Corporate Banking

Credit

Finance

Human Resources

Information Technology

Operation

Mix of people is persistent to provide unparallel service to its customers, come up with timely andinnovative products and services and to enhance the capabilities of its people while emphasizing on the

latest technology. This they believe will take the Bank to a leadership position in the country.

2.3 EBL Management


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Figure 1: Organ gram of EBL

MD & CEO

DMD

Consumer

Consumer

Banking

Cards

NRB

SME Operations

Service

Delivary

Trade

Services

NRB Back

Office

Treasury

Support

DMD

Consumer

Corporate

ID

Investment

Banking

Treasury

HRD FInance ICC CRM

CAD

CFC

ITIT

ConsultantAdmin

SAMD

(Corporate)

SAMD

(SME)

B

Ma

Company

Secretary

MD's

Secretariat


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2.4.1 Business Division

Business Divisions are divisions which earn revenue for EBL. There are five business divisions. The

names, with their brief description are given in the following paragraphs.

Corporate Banking: Corporate banking is the major revenue earner for the bank. Maintaining

relationships with corporate houses to sell the services of the bank is the major goal of corporate

banking. Corporate banking works in collaboration with corporate support unit and trade services. A

brief list of services offered by corporate banking is given as an annexure (Appendix2) to this report.

Consumer Banking: Consumer banking is a revenue earning division major goal of which is not

earning revenue but rather collecting deposits. Consumer loan is yet to be popular with Bangladesh.

However, EBL is ahead of most other banks in consumer lending. Major consumer loan products

include: Parse Loan, EBL Jibondhara, EBL Auto, EBLTraveloan etc. EBL also offers high interest

consumer deposit products like HP account, EBL Interesting account and EBL Campus accounts.

SME Banking:EBL promotes SME banking effectively. The bank has a separate SME division in

place to help small and medium entrepreneurs with loans catered to their needs. SME division offers

loan products like EBL Puji, EBL Asha, EBL Udyog, EBL Mukti (for women entrepreneurs) etc. SMEalso offers exclusive current account solution named EBL Banijjo.

Cards Division: Card division offers Credit and debit card services. EBL is affiliated with VISA

worldwide and has introduced prestigious VISA Platinum credit card to Bangladesh. Other card

division products include VISA Corporate Credit Card, Lifestyle Prepaid Card, VISA Electron Debit

Card etc. Cards division has touched 50,000 cards landmark recently.

Treasury:Treasury is the heart of banking business. While every other unit is important, treasury is the

one that keeps the money circulating through the bank. Treasury division of EBL profits from lending to

different financial institution (i.e. call money business) and also from trading foreign exchange.

2.4 Overview of Divisions of EBL


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2.4.2 Support Division

The support divisions do not earn revenue directly, but they play vital role enabling the business

divisions to function. The names of the support divisions with their activities in brief are given below.

Trade Services: Trade service is the support division for corporate banking. Service like LC

processing, shipping guarantee processing and other export-import related services are given through

this division.

Operations Division: Operations supports consumer banking and cards division of the bank.

Operations also manage cash management activities. Clearing section is also an important part of

operations.

Credit Risk Management:CRM is the division that assesses credit risk related to corporate and SME

borrowings. CRM works in collaboration with corporate support unit to issue loan facilities, limits and

other loans and advances products.

Credit Administration Division:CAD is the division that disburses the loans finally for corporate and

SME sector. It also takes lien of the securities.

Consumer Finance Center: CFC is the division responsible for assessing risk associated with

consumer loans and credit cards. A sub division of CFC also disburses the consumer loans to respective

individual borrowers. CFC works in collaboration with consumer banking.

Special Asset Management: SAMD looks after assets that has been classified bad and loss and tries to

recover them through legal measures. SAMD also liquidates the securities to recover bad and loss debts.

Finance Division:Finance division looks after the day to day accounting of the bank. It is one of the

major divisions to guide the policies of EBL.

Human Resources Division: HRD takes care of the human resources, compensations and

communication.


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Information Technology Division:EBL is a technologically advanced bank. The IT division provides

the much needed technical support to every department. EBL is the first bank to employ Universal

Banking Solution (UBS), a comprehensive banking package, in South Asia. IT division played the

major role implementing the changes.

Direct Sales Team:DSTs are teams of contractual employees who accumulate deposits and create

sales for credit card products for the bank. They create the major channel through which consumer

banking earns revenue.

2.4.3 Subsidiaries

EBL Investments Ltd.:EBLIL is a wholly owned subsidiary of EBL. EBLIL operates in the local

capital market with major objective of sustainable profit. However, EBL maintains the Bangladesh

Bank regulations of not investing more than 10% of deposits in the capital market.

EBL Securities Ltd.: EBLSL is a wholly owned brokerage house of EBL. EBLSL enables the

individual investors to invest in to capital market and helps keeping the capital market running.


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In recent years, EBL has been showing remarkable performance. Achieving accordance with BASSEL-

II and other regulations implemented by Bangladesh Bank, EBL managed to increase ROE and

decrease cost to benefit the stakeholders.

Table 1: Financial Overview of EBL (2010)1

*Consolidated profit before provision, PBT and PAT contain BDT 3.77 million as Gain on accusation of EBL SecuritiesLimited.

1EBL Annual Report 2010, Page 104

Figures in:

Million BDTEastern Bank Limited Subsidiaries Consolidated

Particulars Onshore Offshore Total EBL Securities

EBL

Investments

Limited

Net Interest Income

(Nil)2844.85 128.60 2973.45 -8.26 19.27 2984.47

Total operating income 6330.84 129.88 6460.72 12144.00 19.27 6601.43

Total operating expense 2073.47 0.29 2073.77 35.56 0.07 2,10940

Profit before

provisions*4280.00 129.59 4409.58 93.49 19.20 4526.05

Total provisions 417.17 - 417.17 - - 417.17

Profit before tax

(PINT)*3862.83 129.59 3,99241 93.49 19.20 4108.87

Profit after tax (PAT)* 2295.20 129.59 2424.79 73.64 12.00 2,51420

2.5 Financial Performance of EBL


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2.5.1 Deposit Performance

A banks main raw material to do business is the deposits that the bank collects. EBLs deposit

performance was up to mark as a leading private commercial bank of the country. The value of total

deposits increased by 14.71%2

in 2010 compared to 2009 while the interest paid to those deposits

increased only by 2.88%3. The current deposit situation is portrayed in the following page.

2.5.2 Loan & Advances Performance

Total amount of outstanding loans were increased by 22.95%4. However, interest earnings increase did

not match the increase in outstanding. Interest earnings were increased by only 12.54%5. The following

graph shows the distribution of loans and advances. EBL also managed to decrease the percentage of

non-performing loans to 1.99%.



4EBL Annual Report Page 146

5EBL Annual Report Page 214


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2.5.3 Capital Adequacy Performance

According to Bangladesh Bank, every bank should have at least BDT 4,000 million as total capital (sum

of paid up capital and statutory reserve) before August 11, 2011. EBL has already crossed that mark.

Total capital of EBL as of 2010 is BDT 5,646.33 million of which BDT 2,920.81 million is paid up

capital.6 EBL has achieved compliance with BASEL-II capital requirements.

Table 2: Risk Weighted Asset & Capital Adequacy7

Risk Weighted Asset for:

(Figures in BDT millions)Q1, 2010 Q2, 2010 Q3, 2010 Q4, 2010

Credit Risk 66,603.58 73,979.70 82,575.91 85,968.15

Market Risk 7,645.85 8,596.67 10,993.43 40,426.98

Operational Risk 6,961.68 6,961.68 6,279.02 8,582.58

Total Risk Weighted Asset 81,211.11 89,538.05 99,848.36 104,977.71

Total Eligible Capital 8,480.76 9,089.69 9,911.06 11,460.16

Capital Adequacy Ratio 10.44% 10.15% 9.93% 10.92%


7EBL Annual Report 2010, Page 77-78

74%

14%

12%

Loans and Advances Distributions

Corporate

Consumer

SME

Distribution of Eligible Capital

Tier-1 (Core Capital)

Tier-2 (Supplementary

Capital)


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2.6.1 Strengths

Increased Financial Strength:

The bank had to operate in a declining interest rate environment, but was able to maintain a reasonable

spread. It achieved an Operating Profit of Tk. 659 million un 2004 compared to Tk.419 million in the

previous year. The increased earnings were driven by enlarged loans and advances portfolio, increase in

export and import business and efficient fund management. Non-interest income continued to contribute

higher share in the total income of the bank.

Technology:

Bringing 24 branches under one umbrella, introducing SMS Banking, Internet Banking, and Interfacing

ATM Network through the Online Banking Software has been major achievements of the bank. EBL is

the first bank to online the rural branches.

Capital Adequacy:

The achieved the Tk. 1.0 billion capital requirement ahead of the deadline set by Bangladesh Bank. The

Authorized and paid up capital of the Bank are Tk. 1200 million and Tk. 744 million respectively. The

total shareholders equity as of Dec 31, 2010 stood at Tk. 1183 million. The bank maintained a capital

adequacy ratio of 11.18% at the end of 2010 against the regulatory requirement of 9.0%.

Investment:

The bank closed a number of Syndicate Financing as the lead arranger and also participated in a number

of deals in the textiles, ship breaking, sugar refining, health, telecom sectors.

Centralized operations:

Centralized operations through Online Banking software with internet banking facility and ATM

providing 24 hours banking service is one of the major strength of the bank.

Asset & Liability Growth:

The asset and liability growth has been remarkable. By Oct 2010 the total asset of the Bank grew to Tk

15,687 million, increase of almost 25% comparing to 2009. As of Oct 2010 deposits increased to Tk

12,093 million, an increase of 16% over that of 2010, and Loans & Advances reached Tk 10,538

million, an increase of 29% overthat of 2009.

2.6 Competitive SWOT Analysis of EBL


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Variety of Banking Services are provided

EBL offers its customers a wide range of banking services. The services include Consumer Credit

Scheme, loan facilities and many other banking services. All these services help to retain its present

customers and also aid in gaining access to new market segments. Therefore, these variety in services

offered is a major advantage for EBL.

High Salary Payment Motivates Workforce

EBL has brought some changes in the overall pay structure for the employees at all levels of the

organization. All executives and other staff of the organization are paid very well in monthly salaries.

The employees are quite satisfied with the amount of salary paid to them. The high salary payment acts

as a motivational tool that helps to boost the performance of the employees at EBL.

2.6.2 Weaknesses

Poor Delivery Channels:

The main weakness of EBL is its poor number of branch network in the country. Along with customer

service, the success of a bank depends on the number of outlets i.e. branches through which the

customers can do banking in any location of the country. EBL, though as a third generation bank, has

only 18 branches throughout the country, whereas some established local banks have branches

amounting to hundred.

Marketing Policy:

EBL mainly focuses marketing for liability products of the bank. The marketing programs for asset

products are comparatively poor at EBL. For these products, the bank generally focuses on internal

marketing, among the existing clients of the bank; where as some other banks go for mass marketing for

their products.

Less Product Innovation:

Though its an overall weakness of the industry, Product Innovation is not also impressive at EBL. The

EBL products and services are already active in the banking industry. The only thing that is exceptional

from some other banks in EBL is it has the Bonus Saving Interest rate of the bank for deposit above

Tk.50, 000.

2.6.3 Opportunities

Withdrawal of High Interest

The government has withdrawn all high interest paid government savings scheme to encourage the


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investment in the private sector. Rather than investing in the public sector, the government may decide

to invest in the private commercial banks. As a result, this is a huge opportunity for a commercial bank

like EBL to increase the collection of deposit from the public sector.

Industrialization

The present government is highly committed to increase industrialization and increase the investment in

the private sector. If more industries are established, then the rate of investment will increase. The banks

may obtain a whole new set of customers because of the rise in industrialization. It is a great scope for

EBL to attract new customers segments where they can expand their operation.

Increase in Market Share

EBL has a huge opportunity to expand it market and increase its market share. Since, the number of

industries is increasing day by day, and many cities are being commercialized, it is a great opportunity

for EBL to attract new customers. EBL has the opportunity to motivate the new clients to make huge

investments. This will help the company to increase it market share and the overall performance.

Opportunities for New Investments are Available

The primary investment of EBL is in the textile and Garment sector. The company also makes

investments in export and import business, agriculture and housing. But new investment sectors are

booming rapidly. The company those untapped areas of business and invest in those sectors.

2.6.4 Threats

Loan Default Culture

The loan default culture is one of the major problems for all commercial banks of Bangladesh. Many

business people are being blamed for irregular credit disbursement from different banks. This loan

default culture is a huge limitation for the development of commercial banks like EBL.

Economic Recessions

Downturns in the world economy also pose as a major threat to EBL. Economic recessions greatly

affect the economy of Bangladesh as well and this in turn decreases the rate of exports. Decrease in

exports is a major threat to EBL because this will reduce the foreign exchange earnings of Bangladesh.

EBL maintains foreign exchange accounts of different industries. Therefore, the decrease in foreign

exchange earnings will cause major problems for the growth of EBL.

Competitors may Overtake EBL

There are some major competitors of EBL in Bangladesh. Commercial banks like EXIM Bank and


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Mutual Trust Bank pose as a major threat to the various operations of EBL. If the performance of EBL

declines for some reason at any time, the competitors might take over the entire market. The competitors

also have huge experience in the banking sector and are fully capable for capturing the whole market.

Reduction in Imports

The bank earns huge commissions and non-interest incomes from imports. EBL maintains foreign

exchange accounts and also benefits from commissions during conducting business operations with

importers in Bangladesh. If government increases the margin for imports and also increases the import

duties, it will have a major impact on the operation of EBL. Decrease in imports will deprive the bank

from earning huge amount of commissions.

Corporate Banking Division came into existence because of the restructuring of EBL's business

processes. Previously all the loan disbursement and monitoring activities were carried out by the officers

of individual branches, which resulted in poor management and control of the process. To improve the

poor management and control of the process, Eastern Bank decided to centralize its loan disbursement

and monitoring activities. A separate Corporate Division was created which started operation on 10th

January 2002. This division is responsible for bringing in profitable new corporate clients and retaining

present clients by meeting their various needs. Corporate Banking provides various banking service such

as products, credit facilities and financial solutions which addresses the diverse financial needs of

corporate customers, public and private limited companies, NGOs and sole proprietorship concerns. It is

also responsible for resolving credit issue problems and developing relationship between the customer

and the bank. The whole corporate division is divided into two areas. Area one comprises of Dhaka

and Outstation Branches whereas Area two comprises Chittagong branches. Area one consists of six

relationship units. Five units in Area one are responsible for looking after the bank's assets and one unit is

responsible for liabilities, while Area two has three asset units and one liabilities unit. Every asset unit

has a unit head, which is in charge of that unit. Generally one/two Relationship Manager (RM) and

one/two support officer work under the Unit Head.

All Units head work under the Area Head - Corporate Banking and he reports directly to DMD and

Head of Corporate. The management hierarchy of the Corporate Banking. Division is given below:

2.7 Corporate Banking Process at EBL


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Corporate Division Hierarchy

2.7.1 Services of EBL Corporate Banking

Facility Structuring

Financial Solutions.

Advisory Services.

Arrange Loan Syndications.

Developing Relationship between the Clients and the Bank.

Processing credit and other approvals for credit and other facilities.

Provides one stop service for Credit facilities.

Handles pricing issues and Wallet Sizing Exercises to maximizes the earnings of the Bank as

well as of the Client.

Coordinating service delivery of all EBL distribution channels (Sales and Service centers,

Trade Services, Treasury, Credit issues as required for the customer.

Ensures corporate customer's complaints are addressed.

Relationship Teams of EBL are available to serve you.

Main Functions of EBL Corporate Banking

Targeting corporate clients and building business relationships with them

Head of

Corporate

Area Head -

Corporate

Unit Head

Relationship

Manager

Support

Officer


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2.7.2Corporate Banking Products

NAME DESCRIPTION PURPOSERISK /

REPAYMENT

TENOR /

VALIDITY

PADPayment Against

Document

- Advance against Sight L/C

- Forced Loan

- Recourse on title to

Import document

21 days per

Bangladesh Bank

LTRLoan Against Trust

Receipt- To finance import L/Cs

- Recourse on Sales

- Clean finance180 days

CC (HYPO)

Cash Credit Against

Hypothecation of

inventory Debts

-To finance Inventory

- Other business operations

- General purpose

- Recourse on pledged

Inventory

- Ever green

12 months

CC (PLEDGE)

Cash Credit Against

Pledge of Inventory and

Hypothecation of Book

Debts

To finance pledged

Inventory


Inventory

- High monitoring risk

- Ever green

12 months

ACCEPTANCE Acceptance against ULC-To finance assets thru

Banker's Acceptance- Recourse on sales 12 months

OAP-Own Acceptance

Purchase

-To refinance Bank's

Acceptance

- Forced Loan

- No recourse

- Clean finance

- Ever green

12 months

LBPD-Local Bill Purchased

Documentary

-To purchase/ discount

against Local usance L/C

-Upfront interest to be

realized

- Recourse on Banks

thru acceptance

- Residual on client

180 days

FBPD- Foreign Bill Purchased

Documentary

-To purchase/ discount/

negotiate export doc. against

Sight/Usance Export L/C

-Upfront interest to be

realized (diff. in FX rate)

- Recourse on Banks

- Residual on client45/180 days

LAFB (CLEAN)- Loan Against Foreign

Bill Clean- To finance Export Contract

- Clean finance

-Performance risk- 120 days

LAFBD- Loan Against Foreign

Bill Documentary

- To finance export doc.

against Export Contract

Sight/ Usance

- Recourse on export

doc

- Payment risk

- 45/180 days

SLC - Sight Letter of Credit - For importation- Recourse on title to

import document- 12 months

ULC - Usance Letter of Credit - For importation - Recourse on sales - 12 months

LG

- Letter of Guarantee

-BB/PG/APG/RB/Pay.

Gtee

- For Contractual

Obligations

- Performance risk

-Ever green

- Specific Period

- Open ended

SOD - Secured Overdraft - General Purpose

- 100% cash covered

- No Credit Risk

- Ever Green

- 12 months

OD- Overdraft Against Other

Collateral- General Purpose

- High Credit Risk

-Recourse on Sales

- Ever Green

- 12 months

Import Loan

(Hypo)

- Import Loan Against

Hypothecation of

Inventory and Book-

Debts

- To finance Import L/C or

against contract- Recourse on Sales - 180 days


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2 1


2.7.3 Proposal of Loan

Relationship Managers have the overall responsibility for borrowing relationships under their

control including any security required under the terms of credit approvals. For reasons of

operational efficiency, aspects of obtaining and maintaining security has been delegated to the

Credit Administration

Department and responsibility for the completeness and validity of security documentation rest

jointly with the Credit Administration Department and Relationship Manager. In practice this

means, in the case of the Bank's standard security documentation, Relationship Managers and

Import Loan

(Pledge)

- Import Loan Against

Imported Merchandise

pledged and


Debts

- To finance imported

merchandise under pledge


inventory


- 180 days

Demand Loan(Hypo)

- Demand Loan Against

Hypothecation ofInventory and Book

Debts

- To finance Inventory

procured locally

- To finance duty/tax

- Recourse on Sales - 180 days

Demand Loan

(Pledge)

- Demand Loan Against

Pledged Inventory

procured locally and


Debts

- To finance Inventory

procured locally under

pledge

- Recourse on pledge

Inventory


- 180 days

Time Loan

-Time Loan against

Other

Security/Collateral/Supp

ort

-To finance fixed/other asset

- Recourse on Sales

-Collateralize by

fixed/other assets

-12 months

Term Loan- Term Loan against

fixed assets - To finance fixed asset

- Recourse on fixed

asset-High risk

- Over 12 months

- Max 7 years

PC

- Packing Credit against

Export L/C & Export

Order

- To finance Export L/C

- Pre-shipment Finance

- Performance risk

- Lien on Export L/C- 180 days

BCP (Foreign)- Bankers Cheque

Purchase (Foreign)

- To purchase/ discount

foreign currency Drafts/

Payment Order

- Upfront interest to be

realized (diff. in FX rate)

- Recourse on Banks

- Residual on client- 30 days

BCP (Local)- Bankers Cheque

Purchase (Local)

- To purchase/ discount

Bank Draft and Pay Order

- Upfront interest to be

realized

- Recourse on Banks

- Residual on client- 30 days

Fwd FX - Forward Contract- Cover exchange risk

against Letters of Credit- Performance risk


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2 2


Credit Administration Department must perform a check to ensure that all necessary security

documentation is received from the borrower are in order, and in accordance with the terms and

conditions of the credit approval and as expressed in Approval Letter(s). In the case of non-

standard documentation, security is taken under the guidance of the Bank's panel lawyers, or

Legal and Compliance Department who will provide their confirmation that security has been

executed.

Under no circumstances facilities to be drawn prior to completion of all documentation and

security arrangements unless approval for deferral has first been obtained from the authority,

which approved the facility. This rule must be strictly enforced. However such deferral is

discouraged.

Where security is taken, the following aspects must be ascertained and followed:

The legal procedures and documentation for perfecting the security arrangement to be in strict

compliance with laws of the land. Credit Administration Department must ascertain, and retain

Security Satisfaction Certificate on file, that security has been perfected.

The security providers, whether the borrower or third party, are acting within their capacity to

provide the security.

The value of the security, which must be appraised and updated on a regular basis, or when

circumstances warrant. Professional advice must be sought when appropriate.

Where security is subject to insurance, the security must be insured for appropriate value against

appropriate risks; and that Bank's interests noted and acknowledged by the insure.

2.7.4 Process of Loan Evaluation and Sanctioning

First Step: A customer applies for loan with all the necessary legal documents, annual reports,

company profile, project feasibility study, net worth statement etc. Sometimes the relationshipmanagers also bring in attractive corporate clients by negotiating credit facilities with them and

arranges for necessary documents to be submitted.

Corporate Banking Department then evaluates the borrower by inspecting the customer's factory and

office premises (EBL terms it Marketing Call by the Relationship Manager) and the collaterals offered.

Credit Administration department collects a Credit Report of the customer from the Credit


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Investigation Bureau (CIB) of Bangladesh Bank. This CIB report tells about a customer's and its sister

concerns' previous loan taking and payments record and ranks the customer according to it. This rank

is any one of the following:

Unclassified (UC)

Sub Standard (SS)

Doubtful (DF)

Bad and Loss (BL)

Credit Administration department gives this credit report, RJSC search report, land valuation and

search report and other related documents to the Corporate Relationship Manager (RM). The RM, who

also went for marketing call to the company, prepares a Credit Memorandum (CM) after evaluating

the documents, client's financial condition, market image and many other qualitative and quantitative

factors. This CM package contains -

Credit Memorandum

Application for Limit (AFL)

Account Profitability

Call Report

Financials (EBLance Sheet, Income Statement and Cash Flow)

CIB Report

CM package is then sent to the Head Office Credit Committee (HOCC). If the Credit limit is Below 1.5

crore then HOCC evaluates it. But if it goes beyond this amount, then the HOCC sends it to the Board

of Directors (BOD).

Second Step: The HOCC/ Board of Directors evaluate the CM package. After evaluating, they either

approve or reject the proposal or send the CM back to the RM for further clarification.

Third Step: If the credit is approved then the Credit Administration Department, sends a sanction letter

to the customer detailing the terms and conditions of the credit. If the customer accepts the sanction

letter, the loan is sanctioned.

Fourth Step: After that the loan is disbursed by the Credit Administration Department with the

proposed interest, tenor and repayment terms


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Q.0. Duration of relationship with EBL.

Frequency Percent Valid PercentCumulative

Percent

Valid

More Than 5 years 63 63.0 63.0 63.0

Less Than 5 years 37 37.0 37.0 100.0

Total 100 100.0 100.0

Less Than 5 years

More Than 5 years

3.1 Fre uenc Test

3. Research


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2 5


Q.1 I have my account at Eastern Bank because its giving me better services than

others.

Frequency Percent Valid PercentCumulativePercent

Valid

Strongly Agree 66 66.0 66.0 66.0

Agree 14 14.0 14.0 80.0

Neutral 9 9.0 9.0 89.0

Disagree 6 6.0 6.0 95.0

Strongly Disagree 5 5.0 5.0 100.0

Total 100 100.0 100.0

This question was aimed to find out whether Eastern bank Limited has competitive edge over its

competitors or not. Most of the respondents admitted that they think EBL has competitive edge over itsrivals. Form the chart to the question it can be seen that 66 percent and 14 percent customers strongly

agree and agree that they are banking with Eastern bank Limited because of its better service over its

rivals.

Strongly DisagreeDisagreeNeutralAgreeStrongly Agree

60

40

20

0

Frequency


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2 6


Q.2 I operate EBL account because it has additional features like internet banking

or SMS or ATM banking in comparison to other banks.


Percent

Valid


Agree 71 71.0 71.0 84.0

Neutral 6 6.0 6.0 90.0

Disagree 7 7.0 7.0 97.0


Total 100 100.0 100.0

The functionality of this question was to find out whether the additional services of EBL like SMS,

ATM and Internet Services are adding value or not. 13% and 71% respondents think that these

additional services are adding value to the main service of banking. Among the rest, 6% respondents

admitted that they are uncertain about the additional or extended services of EBL. 7% & 3% people

disagreed about the value of additional services toward the main products and services of EBL.


80

60

40

20

0

Frequency


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2 7


.

Q.3 Charges of EBL's service packages are fair.


Percent

Valid

Strongly Agree 6 6.0 6.0 6.0Agree 54 54.0 54.0 60.0

Neutral 9 9.0 9.0 69.0

Disagree 12 12.0 12.0 81.0


Total 100 100.0 100.0

The satisfaction of the customers regarding the product and service packages is determined asked

through this question. This question was aimed to focus on the price sensitiveness of the customers

regarding the EBL. Here we see that about 6% customers and 60% customers argued that they think

Charges of EBL services are satisfactory i.e. reasonable whereas 9% customers responded to remain

uncertain about their opinion. Again, 12% and 19% respondents disagreed and strongly disagreed about

the pricing of the bank.


60

50

40

30

20

10

0

Frequency


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2 8


Q.4 Loan products offered by EBL meet my requirements.


Percent

Valid


Agree 12 12.0 12.0 20.0

Neutral 22 22.0 22.0 42.0

Disagree 16 16.0 16.0 58.0


Total 100 100.0 100.0

The aim of this question is to focus on the functional quality of extended service of EBLs loan

products. Here we see that 8% and 12% customers argued that they are satisfied with the loan products

of EBL. 22% respondents remained uncertain about the loan products. Where16% and 42%

respondents disagreed and strongly disagreed about the loan products of EBL.



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Q.5 Whenever I want to have EBL product or service, I can have it providing

necessary documents.

Frequency Percent Valid Percent

Cumulative

Percent

Valid


Agree 14 14.0 14.0 20.0

Neutral 37 37.0 37.0 57.0

Disagree 20 20.0 20.0 77.0


Total 100 100.0 100.0

This question was asked to determine the efficiency of the EBL employees for handling the asset

and liability customer in case of providing initial service. In the manner of Strongly Agree and

Agree that they think that they dont face any sort of hindrance incase of opening accounts at EBL,

providing necessary documents. But 37% customers remained uncertain about this statement,

whereas 20% and 23% customers disagreed and strongly disagreed about this statement.



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Q.6 EBL help line support service is very helpful in meeting my queries and other

needs.

Frequency Percent Valid Percent

Cumulative

Percent

Valid


Agree 26 26.0 26.0 83.0

Neutral 7 7.0 7.0 90.0

Disagree 7 7.0 7.0 97.0


Total 100 100.0 100.0

The aim of this question is to focus on the functional quality of extended service of EBL like support

service. Here we see that 57% and 26% customers argued that they are satisfied with the current support

service of EBL. 7% respondents remained uncertain about the support service quality. Where 7% and

3% respondents disagreed and strongly disagreed about the service quality of support unit of EBL.


60

50

40

30

20

10

0

Frequency


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3 1


Q.7 EBL's loan approval procedure is very efficient compare to other banks.


Percent

Valid


Agree 16 16.0 16.0 24.0

Neutral 5 5.0 5.0 29.0

Disagree 23 23.0 23.0 52.0


Total 100 100.0 100.0

This question mainly focuses on the loan approval procedure of EBL. Unfortunately only 8% and

16% customers think that EBL is providing a continuing quality service sincerely. 5% respondents

were uncertain about this statement. On the other hand majority customers like 23% and 48%

replied that they disagree and strongly disagree about the loan approval procedure of EBL.



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Q.8 If other banks come up with same offer with better customer service, I will still

remain loyal towards EBL.

Frequency Percent Valid Percent CumulativePercent

Valid


Agree 8 8.0 8.0 61.0

Neutral 27 27.0 27.0 88.0

Disagree 7 7.0 7.0 95.0


Total 100 100.0 100.0

The focus of this question was to determine the loyalty of the customers and the switching tendency of

EBL customers if possible. 53% and 8% customer strongly agreed and agreed with this statement,

where as 27% respondent stated that they are uncertain about this statement. 7% and 5% customers

disagreed and strongly disagreed that they will switch to other bank, if possible. So, there is less scope

for the customers to shift bank, if other banks provide better service than that of EBL.


60

50

40

30

20

10

0

Frequency


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3 3


Q.9 I can have service at EBL, after banking hours, if needed.


Percent

Valid


Agree 14 14.0 14.0 68.0

Neutral 9 9.0 9.0 77.0

Disagree 15 15.0 15.0 92.0


Total 100 100.0 100.0

The functionality of this question was to find out whether the customers at Eastern bank limited can

have banking services beyond the regular banking hours. In Bangladesh, late banking is also very

popular among businessmen. So, it can be said that its a pre-requirement for a specific segment of

customers. 54% and 14% customers strongly agreed and agreed with this statement. 9% remained

uncertain about this statement.15% and 8% stated disagreement and strong disagreement about the

after-banking hour services of EBL.


60

50

40

30

20

10

0

Frequency


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3 4


Q.10. The Employees at EBL are efficient enough to provide expected service.


Percent

Valid


Agree 13 13.0 13.0 59.0

Neutral 17 17.0 17.0 76.0

Disagree 18 18.0 18.0 94.0


Total 100 100.0 100.0

This question was aimed to determine the efficiency level of the employees to provide desired service of

the customers. 46% and 13% customers stated that the EBL employees are efficient enough to provide

their desired services. 17% customers remained uncertain about the service quality of EBL. 18% and

6% customers disagreed and strongly disagreed about the efficiency level of EBL.


50

40

30

20

10

0

Frequency


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3 5


Here for the regression test I have chosen Q 1 and Q 8 considering Q.1 as a independent variable and

Q.2 as a dependent variable. By conducting this test we can find the answer questions like Is there any

significant relationship between customer satisfaction and loyalty toward EBL?

H0: Customers are not loyal to EBL considering its service.

H1: Customers are loyal to EBL considering its service.

ANOVA (b)

ModelSum of

Squaresdf Mean Square F Sig.

1

Regression 121.173 1 121.173 374.174 .000(a)

Residual 31.737 98 .324

Total 152.910 99

a Predictors: (Constant), Q.1 I have my account at Estern Bank Because its giving me better services than others.

b Dependent Variable: Q.8 If other banks come up with same offer with better customer service, I will still remain loyal

towards EBL.

Coefficients (a)

Model

Unstandardized

Coefficients

Standardized

Coefficientst Sig.

B Std. Error Beta B Std. Error

1

(Constant) .419 .101 4.159 .000

Q.1 I have my account at

Estern Bank Because its

giving me better services

than others.

.947 .049 .890 19.344 .000

a Dependent Variable: Q.8 If other banks come up with same offer with better customer service, I will still remain loyal

towards EBL.

After conducting the Test I found that significance level is less than .05. Science the significance level is

less than .05 null-hypotheses is rejected so alternative is selected. So we can say that customers are loyal

considering EBLs service. So my regression line will be Q8= .947*Q.1+ .419

3.2 Regression Analysis Test


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For the crosstab test I have selected Q.0 to compare with Q.4, Q.5, and Q.7. By conducting this test Ihave found the answer of:

Are People who have an account more than 5 year with EBL satisfied with the loan product

offered by EBL than people who have an account less than 5 years?

Are People who have an account more than 5 year with EBL satisfied with the documentation

system of EBL than people who have an account less than 5 years?

Are People who have an account more than 5 year with EBL satisfied with the loan approval

system by EBL than people who have an account less than 5 years?

Hypothesis Testing 1

H0:With the passes of time loan product offered by EBL doesnt meet its customers requirements.

H1:With the passes of time loan product offered by EBL doesnt meet its customers requirements.

Q.0. Duration of relationship with EBL. * Q.4 Loan products offered by EBL meet my

requirements. Crosstabulation

Q.4 Loan products offered by EBL meet my

requirements.Total

Strongl

y

Agree

Agree NeutralDisagre

e

Strongl

y

Disagre

e

Strongl

y

Agree

Q.0 Duration of

relationship with

EBL.

More Than 5

years

Count 6 9 16 12 20 63

% within Q.0 9.5% 14.3% 25.4% 19.0% 31.7% 100.0%

% within Q.4 75.0% 75.0% 72.7% 75.0% 47.6% 63.0%

% of Total 6.0% 9.0% 16.0% 12.0% 20.0% 63.0%

Less Than 5

years

Count 2 3 6 4 22 37

% within Q.0. 5.4% 8.1% 16.2% 10.8% 59.5% 100.0%

% within Q.4. 25.0% 25.0% 27.3% 25.0% 52.4% 37.0%

% of Total 2.0% 3.0% 6.0% 4.0% 22.0% 37.0%

Total

Count 8 12 22 16 42 100% within Q.0. 8.0% 12.0% 22.0% 16.0% 42.0% 100.0%

% within Q.4. 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 8.0% 12.0% 22.0% 16.0% 42.0% 100.0%

3.3 Crosstab Test


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Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 7.380(a) 4 .117

Likelihood Ratio 7.392 4 .117Linear-by-Linear Association 4.972 1 .026

N of Valid Cases 100

After conducting the Test I found that significance level is more than .05. Science the significance level

is more than .05 null-hypotheses is accepted so alternative is rejected.

So we can say that loan products offered by EBL dont meet its customers requirements especially for

the customer from less than 5 years.


H0:People who have an account more than 5 year with EBL are not satisfied with the documentation

system of EBL than people who have an account less than 5 years.

H1:People who have an account more than 5 year with EBL are not satisfied with the documentation

system of EBL than people who have an account less than 5 years.

Q.0 Duration of relationship with EBL. * Q.5 Whenever I want to have EBL product or service, I

can have it providing necessary documents. Crosstabulation

Q.5 Whenever I want to have EBL product or

service, i can have it providing necessary documents.Total

Strongly

AgreeAgree Neutral Disagree

Strongly

Disagree

Strongly

Agree

Q.0 Duration

of relationship

with EBL.

More

Than5

years

Count 4 11 27 14 7 63

% within

Q.0. 6.3%

17.5

% 42.9% 22.2% 11.1% 100.0%

% within

Q.5.

66.7%78.6%

73.0% 70.0% 30.4% 63.0%

% of Total 4.0%11.0

%27.0% 14.0% 7.0% 63.0%

Less Count 2 3 10 6 16 37


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3 8


Than

5years

% withinQ.0.

5.4% 8.1% 27.0% 16.2% 43.2% 100.0%

% within

Q.5.

33.3%21.4

%27.0% 30.0% 69.6% 37.0%

% of Total 2.0% 3.0% 10.0% 6.0% 16.0% 37.0%

Total Count 6 14 37 20 23 100

% within

Q.0.6.0%

14.0

%37.0% 20.0% 23.0% 100.0%

% withinQ.5.

100.0%100.0

%100.0% 100.0% 100.0% 100.0%

% of Total 6.0% 14.0% 37.0% 20.0% 23.0% 100.0%

Chi-Square Tests



Likelihood Ratio 13.722 4 .008

Linear-by-Linear Association 8.318 1 .004N of Valid Cases 100

a 2 cells (20.0%) have expected count less than 5. The minimum expected count is 2.22.



So we can say that documentation system offered by EBL dont meet its customers requirements

especially for the customer from less than 5 years.



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H0:People who have an account more than 5 year with EBL doesnt thinks that loan approval system

by EBL is efficient than people who have an account less than 5 years.

H1:People who have an account more than 5 year with EBL thinks that loan approval system by EBL is

efficient than people who have an account less than 5 years.

Q.0. Duration of relationship with EBL. * Q.7 EBL's loan approval procedure is very efficient

compare to other banks. Crosstabulation

Q.7 EBL's loan approval procedure is very efficient

compear to other banks.Total

StronglyAgree

Agree Neutral DisagreeStronglyDisagree

Strongl

y

Agree

Q.0 Duration of

relationship withEBL.

More Than

5 years Count 6 13 2 9 33 63

% within Q.0 9.5% 20.6% 3.2% 14.3% 52.4%100.0

%

% within Q.7.75.0% 81.3% 40.0% 69.2% 56.9% 63.0%

% of Total 6.0% 13.0% 2.0% 9.0% 33.0% 63.0%

Less Than 5

yearsCount 2 3 3 4 25 37

% within Q.0. 5.4% 8.1% 8.1% 10.8% 67.6%100.0

%

% within Q.7. 25.0% 18.8% 60.0% 30.8% 43.1% 37.0%% of Total 2.0% 3.0% 3.0% 4.0% 25.0% 37.0%

Total Count 8 16 5 13 58 100

% within Q.0. 8.0% 16.0% 5.0% 13.0% 58.0%100.0

%

% within Q.7 100.0%100.0

%100.0% 100.0% 100.0%

100.0

%

% of Total 8.0% 16.0% 5.0% 13.0% 58.0%100.0

%


40/48

4 0


Chi-Square Tests



Likelihood Ratio 5.275 4 .260Linear-by-Linear Association 2.636 1 .104

N of Valid Cases 100

a 4 cells (40.0%) have expected count less than 5. The minimum expected count is 1.85.



So we can say that loan approval procedure followed by EBL is not efficient enough to meet its

customers requirements especially for the customer from less than 5 years.

For one sample T- Test I have selected questions 1, 2, 3, 6, 8, 9 and 10. So I will conduct 7 hypotheses

to complete this test.

One-Sample Test

Test Value = 0

t df Sig. (2-tailed)Mean

Difference

95% Confidence

Interval of the

Difference

Lower Upper Lower Upper Lower Upper

Q.1 I have my account at

Eastern Bank Because its

giving me better services

than others.

14.558 99 .000 1.700 1.47 1.93

Q.2 I operate EBL accountbecause it has additional

features like internet

banking or SMS banking in

comparison to other banks.

25.427 99 .000 2.160 1.99 2.33

Q.3 Charges of EBL's

service packages are fair.22.103 99 .000 2.840 2.59 3.09

3.4 One Sample T- Test


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4 1


Q.6 EBL help line support

service is very helpful in

meeting my queries and

other needs.

16.286 99 .000 1.730 1.52 1.94

Q.8 If other banks come up

with same offer with bettercustomer service, I will stillremain loyal towards EBL.

16.334 99 .000 2.030 1.78 2.28

Q.9 I can have service at

EBL, after banking hours, if

needed.

14.923 99 .000 2.090 1.81 2.37

Q.10 The Employees at

EBL are efficient enough to

provide expected service.

16.560 99 .000 2.250 1.98 2.52

Hypothesis Testing for Question 1

H0:Customers are not agreed that EBL is giving better service than other banks.

H1:Customers are agreed that EBL is giving better service than other banks.


less than .05 null-hypotheses is rejected so alternative is selected.

So we can say that Customers are agreed that EBL is giving better service than other banks.


H0: Customers do not like EBLs additional features like internet banking, SMS banking or ATM

banking.

H1:Customers do like EBLs additional features like internet banking, SMS banking or ATM banking.



So we can say that Customers do like EBLs additional features like internet banking, SMS banking or

ATM banking.


H0:Customers are not agreed that EBLs service packages are fair.

H1:Customers are agreed that EBLs service packages are fair.



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4 2



So we can say that Customers are agreed that EBLs service packages are fair.


H0:Customers are not agreed that EBLs help line support service is very helpful for meeting their

queries.

H1:Customers are agreed that EBLs help line support service is very helpful for meeting their queries.



So we can say that Customers are agreed that EBLs help line support service is very helpful for

meeting their queries.


H0:Customers will not be loyal toward EBL if other banks come up with same offer with better

customer service.

H1:Customers will be loyal toward EBL if other banks come up with same offer with better customer

service.



So we can say that Customers will be loyal toward EBL if other banks come up with same offer with

better customer service.


H0:Customers are not agreed that EBL give service after banking hours.

H1:Customers are agreed that EBL give service after banking hours.



So we can say that Customers are agreed that EBL give service after banking hours.


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H0:Customers are not agreed that employees at EBL are efficient enough to provide expected service.

H1:Customers are agreed that employees at EBL are efficient enough to provide expected service.



So we can say that Customers are agreed that employees at EBL are efficient enough to provide

expected service.

For one way ANOVA I have selected Question 1 as a Factor and question 2, 3, 6, 9 and 10 as a

dependent list. Question 2,3,6,9 and 10 all are features of EBL.

ANOVA

Sum of

Squaresdf Mean Square F Sig.

Q.2 I operate EBL

account because it has

additional features like

internet banking or SMS

banking in comparison to

other banks.

Between Groups 56.745 4 14.186 91.711 .000

Within Groups 14.695 95 .155

Total 71.440 99

Q.3 Charges of EBL's

service packages are fair.

Between Groups 148.194 4 37.048 230.854 .000


Total 163.440 99

Q.6 EBL help line

support service is veryhelpful in meeting my

queries and other needs.

Between Groups 99.904 4 24.976 200.975 .000


Total 111.710 99

Q.9 I can have service atEBL, after banking hours,

if needed.

Between Groups 177.943 4 44.486 260.123 .000Within Groups 16.247 95 .171

Total 194.190 99

Q.10 The Employees at

EBL are efficient enough

to provide expected

service.

Between Groups 149.105 4 37.276 105.253 .000


Total 182.750 99

3.5 One Way ANOVA Test


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4 4



H0:Customers do not use EBL account because it has additional features like internet banking, SMS

banking or ATM banking.

H1:Customers do use EBL account because it has additional features like internet banking, SMS

banking or ATM banking.



So we can say that Customers do like EBLs additional features like internet banking, SMS banking or

ATM banking and for that reason they use EBLs account.


H0:Customers do not use EBL account because service packages are fair.

H1:Customers do use EBL account because service packages are fair.



So we can say that Customers are agreed that EBLs service packages are fair and for that reason they


H0:Customers do not use EBL account because its help line support service is very helpful for meeting

their queries.

H1:Customers do use EBL account because its help line support service is very helpful for meeting

their queries.



So we can say that Customers are agreed that EBLs help line support service is very helpful for

meeting their queries and for that reason they use EBL account.


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H0:Customers do not use EBL account because it gives service after banking hours.

H1:Customers do use EBL account because EBL give service after banking hours.



So we can say that Customers are agreed that EBL give service after banking hours and thats why they

use EBL account.


H0:Customers do not use EBL account because employees at EBL are efficient enough to provide

expected service.

H1:Customers do use EBL account because employees at EBL are efficient enough to provide

expected service.



So we can say that Customers are agreed that employees at EBL are efficient enough to provide

expected service and thats the cause they still use EBLs account.


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From my above hypothesis testing it can be observed that two of the hypotheses are directly related to

the customer satisfaction level of EBL. That is customer loyalty and satisfaction of customers from

different professions proved that the overall satisfaction level of the customers at EBL is high.

Additional services of EBL like SMS Banking, Internet service do good impression of

satisfaction on level.

Corporate Customers also thinks that charges packages are fair.

Loan products offered by EBL are not full filling clients requirements so I think they need

some new innovative products. Clients more than 5 years are more dissatisfied with the existing

old loan products.

Clients also think that documentation process followed by EBL for loan procedures is not easy

to them, so they expect some easy going documentation system specially Clients less than 5

years.

Help line support service is very helpful to customers.

Loan approve procedures is not efficient compare to other banks.

Clients more than 5 years are more loyal then clients less than 5 years in case of shifting to

another bank.

Service after banking hours is the main cause of loyalty of clients especially for the clients more

than 5 years.

Employee service efficiency is also one of the main reason of high satisfaction for both type of

clients.

After conducting 5 types of hypothesis test like Frequency, regression, ANOVA, T-Test and Crosstab I

found that majority clients are satisfied with the service quality. Less than 30% clients are not satisfied

with the loan products and Loan approval system. Clients more than 5 years are more satisfied than

clients less than 5 years.

So, from the above discussion it can be concluded that customers at EBL Limited are satisfied with the

EBL customer service.

4. Analysis of Findings, Recommendations and Conclusion

4.1 Analysis of Findings


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I designed my recommendations aiming to close the gaps between customers expectations and

perceptions regarding EBLs service and the contribution of the Customer Service activities to the

Brand Equity for EBL. My recommendations are:

EBL should extend their number of branches so that the customer can use their access to

expected service. It is perceived as an essential feature by a significant portion of the customers.

There should be central call center so that the customer can easily do their enquiries, not through

spending time with the Customer Service Officers. Because, officers at the Customer Service

Desk cannot do anything but asking the IT & Card Division. Same service can be provided via a

call center (a wing of Marketing Department), which should be directly linked to the relevant

departments to solve customer problems. As a result of this, the customer Service Officers can

relived from attending customer with complaints and can spend more time with other

prospective customers. Beside, the customers can be relived from coming to the bank for

complaining for their ATM cards or Mobile Banking or Internet Banking.

Capacity of the Customers should be increased.

In the Banking service industry, not only the Customer Service officers are to provide services to

the customers. Officers from every desk should have knowledge of handling customers

properly. Every officers starting from Customer Service Officers to the Teller must be provided

with proper training to provide the Customer Expected Service.

Different programs should be taken to educate the customers regarding different essential

features of Internet and SMS services.

EBL should take extensive program to build a positive image among their customers. In this

process they should try to eliminate the misconceptions of the customers regarding EBL.

4.2 Recommendations


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Another scope, where there are opportunities to reduce dissatisfaction of the EBL customers is Any

Branch Banking System. Though the system is effective, but not properly. The Super Online system

of Eastern Bank Ltd. avails the opportunity to the customers to deposit or withdraw any amount from

any branch if the customer has any account in any EBL Branch. While working at the Credit Division

of EBL, Uttara, I saw a check of EBL, which says Accepted at any branch, without mentioning name

of any branch of EBL. This was something new for me. Concepts like this are convincing and

motivational. Though other banks along with EBL are providing Any Branch Banking, they have a

certain limit to transact.

I would like to start the conclusion part by restating the hypothesis of my study. My hypothesis was,

the customers ofEastern Bank Limited are fully satisfied with the customer service provided by the

bank. Beside this, though Eastern Bank Limited is an A-class bank, if the bank does not maintain this

satisfaction with the companys services, the customers can switch to other banks. IfEBL does not take

care of the dissatisfactions and another bank enters the market with similar offers with better customer

service, it will be difficult for Eastern Bank Limited to attract new customers. From the analysis of the

survey results, it is clear that EBLs there are some scopes to improve the customer. Moreover, the

analysis indicated that the customers of Eastern Bank Limited are loyal toward the bank as they are

satisfied. They clearly pointed that all the banks are providing almost identical features. It is the

Customer Service, which is the differential factor. So they will not hesitate to switch or the new

customers can do banking with other banks because of better customer service or strong network. So,

my hypothesis is proved as a valid one. Therefore, I recommended some courses of action. My

observations make me believe that If EBL follows these recommendations; it will enable them to

achieve a sustainable distinct competitive advantage and to run smoothly with loyal customers &

market leadership.

4.3 Conclusion

6 Final Body Part EBL

Documents

Transcript of 6 Final Body Part EBL