Analysis report on dutch bangla bank

Page 1

A Snapshot of DBBL

1.10 Introduction Historically, commercial banks have been playing a vital role in the world economy and financial system it is the place where the people with surplus fund can deposit the money with full trust and safety and also the people who are in deficit position can borrow money to fulfill their needs. Bank is not only a financial institution; it is a helping hand for the common people, different organizations and also for the government. Banks services are not only limited in deposit and loan services, the functions of commercial banks have changed as the needs of the economy have changed. There are other financial institutions that also provide the service of deposit and loan. But there are some difference between other financial institutions and banks. Other financial institutions do not provide the withdrawal service of money through demand deposits and they also do not concern about the basic financial needs of the consumers like fund remittances inside and outside the country. And they also do not have foreign exchange service, which is one of the most important services that banks provide. By continuous research and development commercial banks are providing the best financial services with the superior technological facilities. They are acting as intermediary between the deficit units and surplus units. Through their activities they are actually driving the wheel of the economy. Country’s prospect and future economic conditions largely depend on the activities of the commercial bank. Dutch Bangla Bank Limited is also playing its role efficiently for the prosperity and good economic future of the country. 1.11 BACKGROUND Dutch-Bangla Bank Limited (the Bank) is a scheduled commercial bank. The Bank was established under the Bank Companies Act 1991 and incorporated as a public limited company under the Companies Act 1994 in Bangladesh with the primary objective to carry


on all kinds of banking business in Bangladesh. The Bank is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited. DBBL- a Bangladesh European private joint venture scheduled commercial bank commenced formal operation from June 3, 1996. The head office of the Bank is located at Senakalyan Bhaban (4th floor), 195, Motijheel C/A, Dhaka, Bangladesh. The Bank commenced its banking business with one branch on 4 July 1996. 1.12 Profile of the bank Dutch-Bangla Bank limited is the first Bangladesh-European joint venture commercial bank incorporated in 1995. With the permission of Bangladesh bank limited, commenced formal commercial banking operation from the 3rd June 1996. The Netherlands Development Finance Company (FMO) of the Netherlands is the international sponsor of the bank. The FMO is the Dutch development bank of the Netherlands specialized in the financing of private enterprises in Asia, Africa, Latin America and Eastern Europe. Under a technical assistance grant from the FMO, ABN-AMRO bank of the Netherlands provided technical assistance to Dutch-Bangla Bank Limited during the first year of operation of the bank (1996-97) Dutch-Bangla Bank Limited (DBBL) primarily is a public company limited by shares, incorporated in Bangladesh under company act 1994. It is also guided by the bank company act 1991 (and its subsequent amendment) and Bangladesh Bank ordinance 1972, so as to enable the company for doing banking business. 1.13 History of DBBL Dutch-Bangla Bank Limited is a brainchild of its chairman Mr. Mohammad Shabuddin Ahmed. He dreamed it long back, when he, had been trying to arrange fund for Tammijuddin Textile Mills Ltd. (TTM) and Kader Synthetic Fibers Limited (KSFL) through the traditional banking system. TTML is a public ltd. company. Its main business is yarn manufacturing with conventional spinning mills of 44000-spindles capacities. KSFL is also a public company limited by shares with an investment of about Tk. 2.0 billion and, now engaged in manufacturing polyester draw texturized and twisted yam. Three international financing agencies like ADB. FMO, AFIC AND two local development-Financing institutions, BSB & SABIONCO have their investment in KSFL, both in terms of loan and equity. The projects were implemented, but had to face time and cost over run due mainly to the procedural delay


in getting access to credit. Among others this might be a good reason for thinking about a bank where in the entrepreneurs will have easy access to modem banking services. Mr. Ahmed has close relationship with FMO, the Netherlands development finance co. limited since 1983. Netherlands Financiering-Maatschappij voor Ontwikkelingslanden n.v. (FMO), a well reputed Holland based international financing institution has been extending their services, especially in development of SSE, SME and many other socio-economic activities mainly in the developing countries. Mr. Ahrried however: opened dialogue with FMO regarding the banking project some times in “1989:1 So-fat my knowledge goes, the first evidence in black and white was the letter dated January 07,1990 written to one Mr. D.C. VenderBiji, the then manager south west-Asia department, of FMO. In a letter dated March 22, 1990 Mr. Groosman, another brilliant offer of FMO visited Bangladesh and wrote to Mr. F.J. Smit, the then Deputy Managing Director, FMO advocating Mr. Ahmed’s proposal. In this way, correspondence in writing, discussion over telephone had been going on. Mission came to study the market, to prep are feasibility report and memorandum of understanding. The proposed name of the bank at first was ‘Development Finance and Commerce Bank Limited (DFCBL). At one stage opinion passed by the FMO mission that Bangladesh is not yet ready for such investment’. But Mr. Ahmed did not leave the idea; rather he started exploring the possibility more vigorously. At last Mr. M.E.H.J Groot of small-scale department of FMO in his letter, dated December 07, 1992 responded positively indicating that ‘small enterprise department of FMO is in a position of finance intermediary Bank’ and accordingly asked for a ‘Business plan’. The interim reply we are working on it and the document is coming in due course, we sent of FMO on 22-12-92. The vigorous exercise of market and collection of primary data in crude from through ‘questionnaires’ started. The proposed name at that stage changed to ‘long term credit’ and commerce Bank lid. Thereafter lots of reports were prepared, tons of papers were utilized and not only man-days but also hundred of man-nights were spent before materializing the dream through convincing FMO, taking approval of GOB, Bangladesh Bank, MOF, RJC, SEC, BOT etc. The result is today’s DBBL, the First European joint venture Bank in Bangladesh. Any way, let us now come to the theoretical aspects of the topic that usually requires following for formation for a company, in general and banking company, in particular. Banking company is also a company like others and required to be formed by way of incorporating it with the register of joint companies and firms (RJSC &F) as per companies


act. 1994. But unlike others, it is also guided by the Bank company act 1991 and Bangladesh Bank ordinances. The major steps to follow may been seen on the screen, During the formation stage several including preparation of per-investment feasibility study, strategic plan, business plan, which inter-alias covers setting goals and objectives, formulating strategic plan, forecasting financial profitability, analyzing SWOT etc. The investors required to be convinced and satisfied with the goals, objectives, profitability and risk involvement before making investment. 1.14 Mission Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a commitment to social responsibility. "Profits alone" do not hold a central focus in the Bank's operation; because "man does not live by bread and butter alone". 1.15 Vision Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics, music and entertainment, science and education, health and hygiene, clean and pollution free environment and above all a society based on morality and ethics make all our lives worth living. DBBL's essence and ethos rest on a cosmos of creativity and the marvel-magic of a charmed life that abounds with spirit of life and adventures that contributes towards human development. 1.16 Core Objectives Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and satisfaction and to become their first choice in banking. Taking cue from its pool esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and epitomizes its vaunted marques "Your Trusted Partner". 1.17 Board of Directors 1. Mr. Abul Hasnat Md. Rashidul Islam, Chairman Mr. Islam is the Chairman of the Bank. He is an M.Com and has wide experiences in International Business (Import & Export) of various commodities since 1973. 2. Mr. Zaheed Hossain Khan, Director Mr. Khan did B.Sc Engineering (Chemical) from Bangladesh University of Engineering and Technology (BUET). He is an Ex-Banker and also held a higher management position for more than 10 years in a joint venture Cotton Spinning & Synthetic filament yarn manufacturing Industry.


3. Mr. Bernhard Frey, Director Mr. Frey, who is a Swiss national, is the Managing Director of Etacol Hong Kong Limited, a reputed business and trading firm of Hong Kong. He has been nominated as a Director of DBBL by Etacol Hong Kong Limited, one of the foreign Shareholders of the Company. Mr. Frey is a Chartered Accountant and well experienced in trading, manufacturing and banking administration. 4. Mr. Shahabuddin Ahmed, Director Mr. Ahmed has been elected as Director from the General Public Shareholders. He is a renowned and well-experienced yarn merchant. He is the proprietor of M/S. Haji Ramijuddin Traders, Madhabdi, and Narsingdi. 5. Mr. Md. Shahidur Rahman, Director Mr. Rahman is an M.S.S in Public Administration. He is a renowned garments industrialist and has wide ranging experiences in this line. He is the Managing Director of Alike Design Ltd. and Aright (BD) Limited; both are export oriented garments manufacturing industries. 6. Mr. Md. Yeasin Ali, Managing Director Mr. Ali is the Managing Director and Ex-Officio Director of DBBL. During his long banking career, he held the position of Managing Director of Rajshahi Krishi Unnayan Bank, Rupali Bank Ltd., Bangladesh Shilpa Bank and important position in Bangladesh Krishi Bank and Agrani Bank


1.18 Management Setup Name

Designation

Mr. Md. Yeasin Ali

Managing Director

Mr. A. H. M. Nazmul Quadir

Additional Managing Director

Mr.K. Shamsi Tabrez

Deputy Managing (Administration)

Director

Mr. Ghulam Kabir

Deputy Managing (Operation)

Director

Mr. Muhammad Islam

Division

Shahidul Senior President

Executive

Vice

Mr. Abul Kashem Md. Shirin

Senior President

Executive

Vice Information Division

Mr. Khan Tariqul Islam

Senior President

Executive

Vice

Mr. Khan Tariqul Islam

Company Secretary

Board Secretariat

Mr. M. Mominul Haque

Executive Vice President

General Service Division

Mr. Moyen Uddin Ahmed

Executive Vice President

Card Division

Credit Division Technology

Accounts Division

Mr. A. K. M. Nazmul Hossain Executive Vice President

International Division (Treasury Back Office)

Mr. A. K. M. Shah Alam

Senior Vice President

Marketing Division

&

Mr. A. K. M. Shah Alam

Senior Vice President

Treasury Office)

Division

Mr. Abul Munim Khan

Senior Vice President

Corporate Banking Division

Mr. Iqbal Amin

Senior Vice President

Credit Administration Division

Development (Front

Mr. Md. Shams-uddin Ahmed Senior Vice President

Human Resource Division

Mr. Md. Harun Azad

Senior Vice President

Internal Control & Compliance Division

Senior Vice President

Credit Monitoring & Recovery Division

Vice President

Retail Banking Division

Mr. Mohammad Motalib

Abdul

Mr. Md. Kamruzzaman

Other Department/Section/Wing: Name Designation

Dept./Section/Wing

Mr. Tasnim Uddin Ahmed

Executive Vice President

Training Wing

Mr. Md. Shahazada Basunia

Asst. Vice President

Public Relations


1.19 Committees

A. Asset & Liability Committee (ALCO) 1. Managing Director

Chairman

2. Additional Managing Director

Member

3. Deputy Managing Director (Operation)

Member

4. Deputy Managing Director (Administration)

Member

5. Head of Credit Division

Member

6. Head of Corporate Banking Division

Member

7. Head of Treasury Division (Front Office)

Member

8. Head of Accounts Division

Member Secretary

B. Credit Committee (CC) 1 Additional Managing Director

Chairman

2. Deputy Managing Director (Operation)

Member

3. Deputy Managing Director (Administration)

Member

4. Head of Credit Division

Member

5. Head of Credit Administration Division

Member

6. Head of Retail Banking Division

Member

7. Head of Corporate Banking Division

Member Secretary

C. Management Committee (MC) 1. Managing Director

Chairman

2. Additional Managing Director

Member

3 Deputy Managing Director (Operation)

Member

4. Deputy Managing Director (Administration)

Member

5. Head of Credit Division

Member

6. Head of Information Technology Division

Member

7. Head of General Service Division

Member

8. Head of Internal Control & Compliance Division

Member

9. Head of Marketing & Development Division

Member

10. Head of Human Resource Division

Member Secretary


D. Recruitment/Promotion / Interview Committee 1. Managing Director

Chairman

2. Additional Managing Director

Member

3. Deputy Managing Director (Operation)

Member

4. Deputy Managing Director (Administration)

Member

5. Head of Information Technology Division

Member

6. Head of Human Resource Division

Member Secretary

E. Purchase Committee: 01 1. Managing Director

Chairman

2. Additional Managing Director

Member

3. Deputy Managing Director (Operation)

Member

4. Deputy Managing Director (Administration)

Member

5. Head of Information Technology Division

Member

6. Head of Internal Control & Compliance Division

Member

7. Head of General Service Division

Member Secretary

F. Purchase Committee: 02 1. Additional Managing Director

Chairman

2. Deputy Managing Director (Administration)

Member

3. Head of Information Technology Division

Member

4. Head of Internal Control & Compliance Division

Member

5. Head of General Service Division

Member Secretary


1.20 Organizational Structure of Dutch Bangla Bank Limited Chart 1: Organizational Structure

Board of Directors

Board’s Secretariat MD’s Secretariat

Training Institute Principal

Audit and Inspection Division

Managing Director

Marketing & Branches

Personnel Division

Establish ment Division

Fund Manage Division

Deputy Managing Director

Credit & International Division

Credit Division

International Division

MIS & Planning Division


1.21 Responsibilities of Divisions Board’s Secretariat Conducting annual general meeting, board meeting and communicating with the members of the board of the directors and helping stockholders for any banking affairs. They also update list of the shareholders and maintain the registration procedure of the new shareholders. MD’s Secretariat Assisting the Managing Director in bank’s operational affairs by providing necessary information and particulars. This department also maintains the daily program of the MD’s. Training Institute Arranging training program, seminar, and workshop for development of skill of bank’s employees. It also does the selection process of the employees for the training purpose. These institutions not only arrange training courses itself; they also have a contract with Bangladesh Institution of Bank Management to provide training to the employees of Dutch Bangla Bank. Audit & Inspection Division Acting as internal auditor of the bank to audit the transaction of bank’s account. Usually this audit has been made in the early time of the year at Dutch Bangla Bank. This audit team also evaluates the performance of the employees individually and reports it in the human resources division. Some time audit comes from the Bangladesh Bank also. They especially check the foreign exchange transactions. Marketing & Branches Division Although Dutch Bangla Bank does not provide any tangible product to its consumers but it also needs a strong marketing strategy to serve its services comparatively better than the competitors. The division looks after this job. They take the necessary steps to promote the banking products and services. It also communicate with the branches for banking affairs, like any branch can face liquidity problem or low deposit problem then this division takes proper initiatives to solve that. It keeps contract with the big corporations and institutions to accumulate big amount of deposits. Personnel Division


Recruiting human resources and maintaining the salary system. It controls the promotion system of the existing officers. They also provide internship facilities to the students of the business school. Establishment Division Maintaining bank’s assets and providing stationary items to the branch and head office. It operates the maintenance account and sets the fund range for the branch to spend for the needed accessories. But if the branch exceeds the fund range then they have to take the permission of the head office. Central Accounts Investment and Fund Management Division In Dutch Bangla Bank the master account is operated by the head office. It operates the operation of the clearing house for all branches and also the other internal transactions through inter branch transaction account. It also maintains the accounts of the bank for investing the idea fund in the money market instruments. MIS & Planning Department This department controls the central database, which contains all the confidential information, the instructions and the bylaws of central bank, and important research works and also the competitor’s information. This department actually does the job of research and development. Credit Division Monitoring the advance and approving the proposal of advances through the board of directors. It also maintains all the information about the loan of each branch. They especially process this information for Bangladesh Bank’s Credit Cell called “Credit Information Bureau”. International Division Maintaining the foreign exchange transaction of the head office and branches. It controls the international fund transfer among the branches and also verifies the letter of credit and sets the margin for it. It time to time notifies the latest instruction of the central bank to all its authorized dealer branches. This department also keeps the record of foreign currency reserve and disbursement and informs central bank every month with particular statement. They also provide daily exchange rate list to all its AD branches through telex or fax. So these are the responsibilities or job description of the different divisions of Dutch Bangla Bank Limited. The employees who work in these divisions or in the branches are also very important for the


bank. Because only their good performance can help Dutch Bangla Bank to reach the expected destination. 1.22 Employees Benefits In addition to fixed salaries and allowances, employees of Dutch Bangla Bank Limited are given following incentives to motivate them in working. Incentive Plans Dutch Bangla Bank Limited provides Cash, Accelerated Promotion, and Special Increment etc. as incentives to its deserving employees. Like every year head office sets a deposit limit for every branch. If the branch can exceed that limit then the employees will enjoy some monetary incentive. Also in between the branch the Vice-President ask the employees to provide their personal contribution to increase the deposit of the branch. The employee who contributes the highest amount of deposit by using their link has been given a nice incentive.

Pension Plans Dutch Bangla Bank Limited does not have any pension plan, but its employees receive gratuity. They also have provident fund and welfare fund for the employees. The head office invests these funds on the securities, which are non-speculative in nature. Number of Paid Holidays The employees of Dutch Bangla Bank Limited get 45 days holidays in a year. They get casual leave of 10 days, and earned leave of 35 days. If one employee does not take the casual leave then he/she will not get this in the next year. Insurance Term Deposit with medical, dental or Banking Products Dutch Bangla Bank Limited does not facilitate its employee

Deposit

MONTHLY TERM DEPOSIT

DEPOSIT 3 for MONTHS individual life insurance policies but maintains groupTERM life insurance all. If any body died TERM DEPOSIT 6 MONTHS

• Savings Deposit Account TERM DEPOSIT 12 MONTHS then his/her family will get some amount by the designation. • Current Deposit Account

Bonuses •

Short Term Deposit Account

Resident Foreign Currency

Dutch Bangla Bank Limited gives two bonuses Usually in the Eid time they get these two bonuses. • Depositand Services 1.23 Products •

Foreign Currency Deposit

Convertible Taka Account

Non-Convertible Taka Account

Exporter's FC Deposit(FBPAR)

TERM DEPOSIT 12 MONTHS TERM DEPOSIT 24 MONTHS TERM DEPOSIT 24 MONTHS 1 Year PAYOUT every year, amounting one basic TERM DEPOSIT 36 MONTHS TERM DEPOSIT 36 MONTHS 6 Months PAYOUT TERM DEPOSIT 36 MONTHS 1 Year PAYOUT TERM DEPOSIT ABOVE 36 MONTHS MONTHLY TERM DEPOSIT BANKS TERM DEPOSIT 3 MONTHS BANKS TERM DEPOSIT 6 MONTHS BANKS TERM DEPOSIT 12 MONTHS BANKS 1 MONTH TD NFCD 3 MONTHS TD NFCD 6 MONTHS TD NFCD

each.


Loan & Advances Loan agst. Trust Receipt Real Estate Loan (Res. & Comm.)

Transport Loan Loan Agst. Accepted Bill Agricultural Term Loan

Consumer Credit Scheme Industrial Term Loan Lease Finance

Other Term Loan FMO Local currency Loan for SME FMO Foreign currency Loan Cash Credit (Hypothecation) Small Shop Financing Scheme

Overdraft

Literature Review With the opening up of the economy of Bangladesh, a dramatic change has been observed both

in manufacturing and in service sectors. This has brought higher employment

opportunities, increases in income level, and changes in consumption pattern and consequently there emerges a competitive environment in the country. Specifically, the expansion of private banking business, along with customized services, has created a severe implied competition in this sector. This competition has made the service gap wider as private banks offer better services to their internal and external customers. The scenario has created an urge to the bank policy makers to identify the underlying reasons and brought them into consideration the job satisfaction issue. Because satisfaction is interrelated with service which create gap between services or reduce the gap. It has been further envisaged that officers in banking sector play the key role in manipulating their services through implementing policy that has appeal to their customers. In such situation, job satisfaction of bank officers becomes an important issue that has to be taken care of in order to achieve ultimate goals of the banking sector in Bangladesh. To identify the service gap of Dutch


Bangla Bank Limited we need to identify the job satisfaction of the bankers as well as to know how customers expect the service from the bank. 2.1 Background Analysis Service “Services are going to move in this decade to being the front edge of the industry.”(Louis V. Gerstner, 2001) we can broadly define services are deeds, processes and performances. In economics and marketing, a service is the non-material equivalent of a good. Service provision has been defined as an economic activity that does not result in ownership, and this is what differentiates it from providing physical goods. It is claimed to be a process that creates benefits by facilitating a change in customers, a change in their physical possessions, or a change in their intangible assets. Service Satisfaction The dictionary defines “satisfaction” as “fulfillment” or “gratification.” Early exploration of library user satisfaction was based on this literal definition that sought to identify a binary state of whether or not the user was satisfied. Since the 1980s consumer research has moved away from this literal meaning and pursues the study of customer satisfaction in terms of describing consumer experiences. The concept of user satisfaction in the library literature likewise has evolved to encompass a broader focus on the users’ perspective of the library. Applegate defines user “satisfaction… as a personal, emotional reaction to a library service or product.” 1 Bitner and Hubbert suggest that it consists of service encounter satisfaction, “the consumer’s dis/satisfaction with a discrete service encounter,” and overall service satisfaction, “the consumer’s overall dis/satisfaction with the organization based on all encounters and experiences with that particular organization.” 2 Though related, the concept of “service quality” is different from satisfaction, and has offered an alternative direction to assess library performance. Satisfaction is often a short term measure. Service quality evolves over time and relates to the customer’s developed attitude toward a service. There is no single definition of service quality though it is distinguished from satisfaction by its focus on expectations. Within the library literature, reported research has adopted the concept from the Gap Theory of 1 Rachel Applegate, “Models of Satisfaction,” in Encyclopedia of Library and Information Science 60, supplement 23, edited by Allen Kent (New York: Marcel Dekker, 1997), 200. 2 Mary Jo Bitner & Amy R. Hubbert, “Encounter Satisfaction Versus Overall Satisfaction Versus Quality: The Customer’s Voice,” in Service Quality: New Directions in Theory and Practice, edited by Roland T. Rust and Richard L. Olvier (Thousand Oaks, CA: Sage, 1994), 76-77. Service Quality, developed by the marketing


research team of Parasuraman, Berry, and Zeithaml. They define service quality in terms of reducing the gap between customers’ expectations for excellent service and their perceptions of services delivered 3.Since it is personal to an individual’s experience with a specific encounter or series of experiences, satisfaction may or may not be related to the performance of a library. One user may be satisfied, while another is not, with the same library service. Service quality aims to describe a global judgment or attitude. Hernon and Altman point out: By inference, satisfaction levels from a number of transactions or encounters that an individual experiences with a particular organization fuse to form an impression of service quality for that person. The collective experiences of many persons create an organization’s reputation for service quality. 2.2 Major Findings When we did a Focus Group Discussion with the employees of Dutch Bangla Bank, we got the positive as well as negative information and also got some information from their potential clients regarding their service. Now we can separate this information in to two perspectives. This are: Banker and Customer perspective. Now focus the problems are: Clearing Delay Another problem in Dutch Bangla Bank is clearing delay. Most of the department takes a long time to clear the activities which takes a lot of time of the clients. Queue Management One of the major problems in Dutch Bangla Bank is queue management. There is no well structured queue management which cause clients wait for a longer period of time. Some times clients get the output after his fellow client who makes him/her anger. Lack of Training Another problem among the employee of Dutch Bangla Bank is lack of training. Due to lack of training activities get hampered and delay which cause clients get frustrated. Insufficient Employees The major problem of Dutch Bangla Bank is insufficient employees in their principal branch. Because principal branch is the largest branch among all which cause a huge rush in the bank everyday. So due to insufficient employees clients need to wait in the queue for a long time. Need of Call Center


Dutch Bangla Bank does not have the facilities of call center. Though they don’t offer different services but to compete in the current market they must have all the latest facilities. For which they should have at least call center. Priority Banking Compare with Standard Chartered Bank, Dutch Bangla Bank doesn’t have the facilities of priority banking. So there loyal client doesn’t feel any extra facilities which feel by SCB clients. International Debit Card In the banking sector NCC, Prime, DBBL, Eastern, Dhaka, Bank Asia are the major competitors of Dutch Bangla Bank. Though other rivalry offer International Debit Card but still Dutch Bangla Bank doesn’t offer this sort of facilities which makes them one step backward from the competition. Lack of Promotion Like other competitive bank Dutch Bangla Bank doesn’t go for much more promotion for their products or services. It causes their customers unaware about their services. When I talk to their potential clients most of them don’t know that Dutch Bangla Bank have the online banking facilities. And this problem happens due to their lack of promotion. Lack of Communication between Management and Employees There are lack of communication between top management and employees which cause to create a gap between them and that makes hampered the service. Unable to Deliver Quality Service Due to lack of training or insufficient employees sometimes it is impossible to deliver quality service to the clients. It makes the client more frustrated. Personal Reference The root problem in Dutch Bangla Bank is personal reference. Without good reference it is simply impossible to get a job or get a promotion in Dutch Bangla Bank. Though Dutch Bangla Bank has some limitation or lacking in their services but they have some positive side also. They mainly focus on accounts opening section. Their major revenue comes from accounts opening. About 60% of their clients have a current and savings account in the bank. This makes them getting more clients from reference to existing clients. Because they charge the least amount of balance to open a current and saving account in the bank. Their majorities are corporate clients and most of them have current and saving account in the bank.


Charge Minimum Balance For accounts opening Dutch Bangla Bank charge a minimum balance which makes their clients more chance to open an account in their bank. Charge Low Fees In case of opening a fixed account or savings account Dutch Bangla Bank charge yearly fees which is very low compare with other banks. Online Banking Facilities Dutch Bangla Bank has stepped into the electronic banking age. Now, you can deposit and withdraw cash, get mini statement, check balance and even transfer money within your accounts and pay installments from any of the branches with online facility. This is just beginning of any branch banking under which other branches will come soon. For the convenience of valued customers, this is the way DBBL would like to modernize it and serve them better by introducing state-of-the-art banking concept as the first generation local private bank. Credit Card Facilities Though Dutch Bangla Bank doesn’t have well structured card division but they offer different credit card to their clients. Among them DBBL Gold card, DBBL Pink card and DBBL Classic card are used by clients. DBBL Gold card is an international credit card which used in both nationally and internationally. They also offer DBBL pink card which is actually a credit card only for ladies. This is the first time in Bangladesh that a bank offers a credit card especially for woman. Last Five Years of DBBL Taka (million) BALANCE SHEET (as on 31 2001 Dec.) Authorized capital 400.00 Paid-up share capital 202.14 Share premium 11.07 Total capital 664.35 Capital surplus/(deficit) 27.90 Reserve fund 117.47 Retained earnings 170.64 Deposits 11457.76

2002

2003

2004

2005

400.00 202.14 11.07 909.00 98.27 176.67 236.51 15975.45

400.00 202.14 11.07 1474.50 204.74 352.89 407.24 21067.56

Loans & advances

8044.43

9391.64

400.00 202.14 11.07 1136.29 136.23 253.09 325.78 17133.8 1 11431.3 2

400.00 202.14 11.07 1909.26 217.90 490.46 579.24 272411.1 1 20134.74

Lease receivables Import

11215.05

11858.01 17549.6

25974.44

149876.0 6

26029.01


Export Total assets

4800.62 13463.23

Total earning assets

12387.63

Total non-earning assets Total contingent liabilities

1075.60 3640.22

0 5015.94 7659.17 17865.66 19965.6 0 16457.32 18342.8 7 1408.35 1622.73 3583.34 6786.52

1299.27 902.01 58.17 397.26 122.72 274.54 111.74 162.80

1897.40 1473.84 102.23 423.56 127.56 296.00 118.40 177.60

37.85 8.02 70.00 41.19

13581.71 24560.55

22144.17 32339.55

22161.76

28705.58

2398.76 11588.25

3633.97 15890.15

2115.49 1661.70 224.32 453.79 71.68 382.10 171.95 210.16

2366.92 1734.51 126.62 632.41 106.44 499.02 262.67 236.35

3434.73 2495.15 183.57 939.58 215.56 687.82 320.00 367.8

31.50 10.09 59.00 56.41

29.63 10.23 66.72 41.58

26.03 10.45 71.09 23.24

31.01 10.16 73.91 357.35

6.94

19.04

19.04

19.04

123.77

0.51 1.59 7.74 7.86 80.54 17.50 5.30

1.75 0.60 1.13 3.11 8.65 87.86 20.00 4.64

10.38 0.36 1.11 8.84 8.53 103.97 20.00 4.15

13.70 0.16 1.06 6.22 6.90 116.93 22.050 15.84

1.77 1.29 5.25 7.48 181.97 25.00 12.02

248.01

309.88

391.85

506.53

667.18

427.00 588 309 11

407.00 471 401 17

431.50 451 436 17

1852.50 403 431 19

2187.50 583 548 28

INCOME STATEMENT Total operating income Total operating expense Total income from investment Profit before provisions Total provision Profit before tax Provision for tax Net profit (after tax) RATIOS & STATISTICS: Return on equity (ROE %) Capital adequacy ratio (%) Loan deposit ratio (%) Amount of classified Advances (Taka) Provision kept against classified Advances (Taka) Provision surplus/(deficit) (Taka) Classified loans to total loans (%) Return on assets (ROA %) Return of Investment (ROI %) Cost of Fund (%) Earning Per Share (Taka) Dividend Per Share (Taka) Price Earnings (P/E) Ratio (Times) Net Asset Value (NAV) per share (Tk.) Market price per share (Taka) Number of shareholders Number of employees Number of branches 2.5 Conclusion Finally we can say to identify the service gap model first we have to know what are the service offered by Dutch Bangla Bank Limited and what service they are unable to get their clients. Then we have to identify is they understand the customer expectations or not? Do they really fulfill their needs? After analyze all this things we can identify the service gap of


Dutch Bangla Bank Limited. To do that first we have to conduct a Focus Group Discussion or an informal discussion with their employees and their existing and potential clients. About their opinions I am identify the above criteria where Dutch Bangla Bank has lacking or strong approaches. So to better the situation or closing the service gap Dutch Bangla Bank need to take some serious action which can change their business scenario. These changes are given to recommendation part of this paper. 2.6 Recommendation There are some recommendations for Dutch Bangla Bank Limited to improve their service. •

Give more training to the employees so that they can ensure the quality service.

Should not be clearing delay when provide the service.

Should have a nice and clear queue management so that client can get the service without any hassle.

Number of employees should be increased so that quick deliver of service will be ensured.

Should have well structured card division which provide all the latest facilities that provide by other private banks.

Should have a call center to ensure the better service to the client so that client can’t switch to other bank.

Should have facilities like priority banking which have other private bank.

Should have International Debit card that offered by other bank.

Dutch Bangla Bank should go for more promotion. People mostly unaware about their services or products which is a major problem for them.

Should have a good relation between employees and top management. It will give employee more motivation and they can share their views and opinions to top management.

Dutch Bangla Bank should ensure quality service to their clients by recruiting proper and skilled human resources.

Top management takes proper decision and gathered more capital to invest.

Should have the mentality to being first in the competition.

PARTSTATEMENT OF THE PROBLEM THREE This Marketing research is conducted to identify the reasons the cause or create the service gap of Dutch Bangla Bank.


3.1 Broad Objective “To determine the key factors that causes to create service gap of Dutch Bangla Bank Limited.” 3.2 Specific Components of Marketing Research Problem Triggering Factors What are the variables, which have an influence to create service gap of Dutch Bangla Bank Limited. (Delay, insufficient employees, lack of training, unstructured queue management, interest rate, unavailable of different card, personal reference and so on.) 3.3 Specific Objective My research is about to identify service gap and its factors, which I have already defined in my broad objective. Now I have found about specific objectives. Specific objectives are: 1. To find out that delay cause to create service gap. 2. To identify that lack of training cause to create service gap. 3. To identify that lack of well structured card division cause to create service gap. 4. To identify that unavailable of call centre cause to create service gap. 5. To identify the unstructured queue management cause to create service gap. 6. To identify that lack of promotion cause to create service gap. 7. To identify that lack of communication between management and employees cause to create service gap. 8. To identify that unable to deliver quality service cause to create service gap. 9. To identify the insufficient business hour cause to create service gap. 10. To identify the unavailable of different card service cause to create service gap. 11. To identify that personal reference can cause to create service gap. 12. To identify that less interest rate can cause to create service gap. 13. To identify that less attention can cause to create service gap. PART APPROACH TO THE PROBLEM FOUR 4.1 Theoretical Framework So the theoretical framework of the research “Service GAP model of Dutch Bangla Bank” is: To identify the reasons that create service gap, I have initially identified some variables/factors, which are significantly correlated with the service of Dutch Bnagla Bank


Limited. These factors are: delay, insufficient employees, lack of training, unstructured queue management, lack of well structured card division, unavailable of priority banking, unavailable of call center, lack of promotion, lack of communication between management and employees, unable to deliver quality service, unavailable of International debit card. So service gap is based on the simultaneous activation or one/more activation of these variables. These variables are to be described under the exploratory research design (qualitative research), them for data collection I have to select non probability sample, for analyzing data I have to determine non parametric data analysis technique and finally findings will be interpreted with the existing body of knowledge.

4.2 Analytical Model Analytical model is a set of variables and their interrelationships designed to represent, in whole or in part, some real system or process. Model can have many different forms. The most common are: •

Verbal Model

•

Graphical Model

•

Mathematical Model

Verbal Model Service gap is formed due to dissatisfaction of the customers or employees. It also happens due to miscommunication between management and employees. So in case of Dutch Bangla Bank service I find out some factors that cause to create service gap. And these factors are: delay, insufficient employees, lack of training, lack of well structured card division, unavailable of priority banking, unavailable of call center, lack of promotion, lack of communication between management and employees, unable to deliver quality service, unavailable of International debit card etc. Graphical Model:


Service Delay Insufficient Employees Lack of training Lack of well structured card division Unavailable of call centre Unstructured queue management Lack of promotion Lack of communication between management and employee Unable to deliver quality service Unavailable of international debit card.

Service GAP of Dutch Bangla Bank Limited

Mathematical Model The mathematical model of graphical model and verbal model is: Y = a0 + f (x) Where, y = Dependent variable (Service) F (x) = Independent variables (factors which influence service gap) •

X1 = Service delay

X2 = Insufficient employees

X3 = Lack of training

X4 = lack of well structured card division

X5 = Unavailable of call center

X6 = Lack of promotion

X7 = lack of communication between management and employees

X8 = Unable of deliver quality service

4.3 Service GAP model of Dutch Bangla Bank Limited Consumer Word-of-mouth communications

Personal needs

Past experience


Expected service

GAP 5 Perceived service

Marketer Service delivery

GAP 4

External communications

GAP 3 GAP 1

Translation of perceptions GAP 2 Management perceptions

Here for Dutch Bangla Bank Limited, following GAP will be created and the reasons behind this:

GAP 1 We know GAP 1 is created when there is a breach between customer expectation and management perception of customer expectation. Here also DBBL doesn’t understand the expectation of customers. Like customers want something but management understands it differently. When I go for depth interview I found that customer want the support of good quality card but their card is not that much standard like other competitor. GAP 2 We know GAP 2 is created when there is a breach between management perception of customer expectation and translation of perception in to service quality specifications. Here in case of DBBL GAP 2 is created because of failed to establish the right service quality standards. For example: DBBL clients’ wants facilities like priority banking, call center


which don’t have DBBL but management make misperception of the clients’ expectation as well as don’t establish the right service quality standard. GAP 3 We know GAP 3 is created when there is a breach between translations of perceptions into service quality and service delivery. Here in case of DBBL GAP 3 is also created. For example; DBBL management wants to provide their client online banking facilities in to more than 30 branches by the first time. But they failed to deliver it and provide only 10 branches at first time. Also sometimes I saw their online facilities don’t work due to server failure. They also want to give SMS banking facilities but it won’t work for many branches. GAP 4 We know GAP 4 is created when there is a breach between service delivery and external communications to consumers. Here in case of DBBL GAP 4 is also created. For example; when go in their bank I saw most of the clients complain against online banking. Because most of them unaware of this service. So, what I feel is that DBBL don’t create good external communication to their clients. GAP 5 GAP 5 is created when there is a breach between perceived service and expected service. And definitely DBBL have this GAP 5 because most of their clients have this problem, they expect something and get something. For example; clients want SMS banking facilities in every branches but actually they don’t this facilities in every branch. They expect quick service from DBBL but actually they have to wait longer period of time in queue.

4.4 Box and Arrow Model of Dutch Bangla Bank Limited

Clients

Clients with reference

Clients without reference


Dutch Bangla Bank Limited

General Banking

Advanced Banking

Foreign Exchange

Reason for service frustration • • • • • • • •

Service Delay Insufficient employees Lack of training among employees Lack of well structured card division Unavailable of call center Lack of communication management and employee Lack of promotion Unable of delivery quality service

Dissatisfied Clients

Satisfied Clients

PARTResearch Design FIVE 5.1 Type of Research Design My research is limited to narrower areas. The study is conducted in Dhaka. The main focus area is in Dhaka city. So I mainly focus on narrower area rather than wider area. The time duration of the research is from July 2007 to August 2007.


Type of Research

Quantitative research (To quantify the data and generalize the

Research Design

results from the sample to the population of interest.) Descriptive research (Type of conclusive research used to

Data Collection

describe something.) Survey method (Involve structure questionnaire given to respondents and elicit specific information.)

Questionnaire Structured questionnaire Scaling Non comparative scaling technique: Itemized rating scale – Likert scale (5 point) Data Analysis Parametric 5.2 Information Need The type of information obtained in a questionnaire is classified as: Basic Information It is the basic information relates directly to the research problem like do they like the service, what they like most, what are the lacking in DBBL service etc. Classification Information It consists of questions that classify the respondents and understand the result.

In

questionnaire, questions are divided into different categories to know respondents’ habit, attitude, and opinion regarding DBBL service. Identification Information It includes name, address, contact number, occupation, gender etc. It is the respondents profile in the questionnaire. 5.3 Data Collection from Secondary Sources Secondary data are data that have already been collected for purpose other than the problem at hand. I collect secondary data from various reports of Dutch Bangla Bank Limited and from Internet. 5.4 Data collection from Primary Sources A researcher originates primary data for the specific purpose of addressing the problem at hand. For collecting data from primary sources I first conducted depth interview with decision makers that is with Bankers. At last I conduct a survey of 50 clients of bank to collect data. 5.5 Scaling Technique


In the questionnaire most of the questions are in likert form, which is a five point rating scale. This scale has specific categories and each specific category has its description. In my research questions I have defined categories and their descriptions are as follows: •

Strongly disagree = 1

Disagree = 2

Neutral = 3

Agree = 4

Strongly agree = 5

SD(1) Disagree(2) Neutral(3) Agree(4) SA(5) Likert scaling technique is used because it is easy for my respondents to understand and place their points as for each feature there is one number. More over the outcome I get is easy to implement for data analysis. 5.6 Questionnaire Development & Pre-testing Questionnaire Development Structured questionnaire is developed for the research. The questionnaire starts with screening questions to screen the potential respondents, that is that are the bank clients. Then main questions start to know respondents’ liking, disliking, knowing about DBBL service. The questionnaire ends with respondent profile, which include name of the respondents, their occupation, contact address, gender, telephone number. Pre-testing It means testing of the questionnaire on a small sample of respondents for the purpose of improving the questionnaire by identifying and eliminating potential problems. To improve the questionnaire, I do not go for pre-testing but sufficient steps are taken to improve questionnaire and eliminate errors. 5.7 Sampling Technique Target Population The studies generally target all those people who taking service from Dutch Bangla Bank Limited. Sampling Unit Target population of the study divided into two parts – male and female. Sampling Technique


Cluster sampling under probability sampling technique should be used. But for academic purpose, here quota sampling under non-probability sampling will be used. Quota will be taken by gender (male and female). Total Population

Quota Quota 1: 1: Male Male

50% 50%

Quota Quota 1: 1: Female Female

Mainly Mainly using using Snowball Snowball Approach Approach

50% 50%

25 25 Clients Clients

25 25 Clients Clients

50 50 Sample Sample Elements Elements

Sampling Element Each male and female client in Dhaka City is the sample element of this research.


Sampling Size Formula for finding sample size is: n =

ð2 z2 D2

Where ð = Standard deviation z = Level of confidence D = Precision level Total Sample size = 50 Execution Allocate sample by quota. Then select respondents by using snowball technique. For male and female clients I use snowball technique. 5.8 Field Work This research has been carried out by 1 member and the member work in field for collecting data from respondents (clients). While doing the survey in field, some steps have been followed: Making the Initial Contact The field work begin by making opening remarks that convinced potential respondents to participate: mentioning that this research is conducted by the students of East West University and this will be done only for academic purpose. Asking Questions Questions have been asked to the respondents by following some guidelines:

Questions are asked in the order in which they appear in the questionnaire.

Exact wording have been used which is given in the questionnaire.

Questions have been read slowly.

Questions that are not understood have been repeated.

Recording the Answers All the answers are recorded in questionnaire (place for official use) so that it becomes easy to insert data into SPSS. Terminating the Interview


All the information has been obtained properly and necessary answers have been given to the respondent’s questions about the project. The survey ends with thanking the respondents and expressing appreciation. DATA ANALYSIS Methodology

PART SIX

For data analysis I use both the parametric and non-parametric approach. As in my questionnaire the first question is screening that is just use “yes” or “no”, so I use nominal scaling under non-parametric data analysis technique.

It has one variable so I apply

frequency distribution. But for other questions, which are in likert form, I use scale/ interval under parametric data analysis technique. Plan of Data Analysis As most of my questions are in likert form so I have used scale/ interval under parametric data analysis technique. Here I use t-test as all of the statements deals with one variable. I use significance level is equal to .05 and develop the hypotheses. The hypotheses are: H1: Service delay can cause dissatisfaction that led to create service gap. H2: Unstructured queue management is a reason for service dissatisfaction. H3: Insufficient business hour is a reason to create service dissatisfaction. H4: Lack of training among employees led to create service gap. H5: Less structured card division can cause to create service gap. H6: Unavailable of special service like priority banking, call center cause to create service gap. H7: different card service like Int. Debit Card/ATM card can make the service dissatisfaction H8 Lack of promotion can create the service gap. H9 Maintain a good eye contact is a reason to create service dissatisfaction. H10Lack of communication between management and employees led the service gap. H11Personal reference can create the service gap. H12 Good interest rate can create the service gap. H13: Less attention can cause to create service gap H14 Charge low fees for maintain the accounts. H15 DBBL takes minimum amount for accounts opening. H16 Online, SMS banking doesn’t fulfilled customer need. H17 DBBL management doesn’t understand customer expectations.


H18 Customer unaware about every service of DBBL. For null hypotheses (H0), I develop the statement, which comprise of existing situation, and in alternate hypotheses (H1) I have developed statement, which I want to prove. If the outcome comes greater than 0.05 than I have accepted null hypotheses. But if the outcome comes less than 0.05 then I have accepted alternate hypothesis. Thus: Probability > 0.05, Accept null hypothesis (H0) Probability < 0.05, Accept alternate hypothesis (H1) At the end for each result I make statistical decision and marketing decision. Hypothesis 1 H0: Service delay is not a reason for service dissatisfaction that led service gap. H1: Service delay is a reason for service dissatisfaction that led service gap. Significant Level = 95% One-Sample Statistics N DBBL provide proper service to their client on time

Mean 50

Std. Deviation

Std. Error Mean

1.129

.160

2.50

Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision Service delay can cause to crate dissatisfaction that led to service gap. Hypothesis 2 H0: Unstructured queue management is not a reason for service dissatisfaction. H1: Unstructured queue management is a reason for service dissatisfaction. Significant Level = 95% One-Sample Statistics N Client wait on a queue for getting the service

Mean 50

3.30

Std. Deviation

Std. Error Mean

1.129

.160


One-Sample Test Test Value = 5

t Client wait on a queue for getting the service

df

-10.644

49

Sig. (2-tailed)

Mean Difference

.000

-1.700

95% Confidence Interval of the Difference Lower Upper -2.02

-1.38

Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision Unstructured queue management can crate service dissatisfaction. Hypothesis 3 H0: Lack of training is not a reason for service dissatisfaction. H1: Lack of training is a reason for service dissatisfaction. Significant Level = 95% One-Sample Statistics N

Mean

Employee of DBBL is skilled to provide quick service to their client

50

Std. Deviation

Std. Error Mean

1.131

.160

2.84

One-Sample Test Test Value = 5

t Employee of DBBL is skilled to provide quick service to their client

-13.500

df 49

Sig. (2-tailed)

Mean Difference

.000

-2.160

95% Confidence Interval of the Difference Lower Upper -2.48

-1.84

Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision


Lack of training among employees can crate service dissatisfaction. Hypothesis 4 H0: Insufficient business hour is not a reason to create service dissatisfaction H1: Insufficient business hour is a reason to create service dissatisfaction Significant Level = 95% One-Sample Statistics N

Mean

The DBBL center has a convenient business hour

50

Std. Deviation

Std. Error Mean

.707

.100

3.70

One-Sample Test Test Value = 5

t The DBBL center has a convenient business hour

df

-13.000

Sig. (2-tailed)

Mean Difference

.000

-1.300

49

95% Confidence Interval of the Difference Lower Upper -1.50

-1.10

Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision Insufficient business hour is a reason to create service dissatisfaction Hypothesis 5 H0: Maintain a good eye contact is a reason to create service dissatisfaction H1: Maintain a good eye contact is not a reason to create service dissatisfaction Significant Level = 95% One-Sample Statistics N DBBL employee has good eye contact and always smiling with their customer

Mean 50

3.46

Std. Deviation

Std. Error Mean

1.014

.143


One-Sample Test Test Value = 5

t DBBL employee has good eye contact and always smiling with their customer

df

-10.735

Sig. (2-tailed)

Mean Difference

.000

-1.540

49

95% Confidence Interval of the Difference Lower Upper -1.83

-1.25

Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision Maintain a good eye contact is not a reason to create service dissatisfaction Hypothesis 6 H0: Good interest rate is not a reason to create service dissatisfaction H1: Good interest rate is a reason to create service dissatisfaction Significant Level = 95% One-Sample Statistics N DBBL gives good interest rate to their customer

Mean 50

Std. Deviation

Std. Error Mean

.815

.115

3.78

One-Sample Test Test Value = 5

t DBBL gives good interest rate to their customer

-10.580

df 49

Sig. (2-tailed)

Mean Difference

.000

-1.220

95% Confidence Interval of the Difference Lower Upper -1.45

-.99

Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision Good interest rate is a reason to create service dissatisfaction Hypothesis 7 H0: Personal reference make not easy to get the service that not dissatisfied clients. H1: Personal reference make easy to get the service that creates clients dissatisfied.


Significant Level = 95% One-Sample Statistics N

Mean

Personal referance can help to get the service fast

50

Std. Deviation

Std. Error Mean

.728

.103

4.20

One-Sample Test Test Value = 5

t Personal referance can help to get the service fast

df

-7.766

Sig. (2-tailed)

Mean Difference

.000

-.800

49

95% Confidence Interval of the Difference Lower Upper -1.01

-.59

Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision Personal reference make easy to get the service that creates clients dissatisfied. Hypothesis 8 H0: Unstructured card division can’t make the service dissatisfaction H1: Unstructured card division can cause to create service dissatisfaction Significant Level = 95% One-Sample Statistics N

Mean

The card division of DBBL is well structured to meet the demand

50

Std. Deviation

Std. Error Mean

.729

.103

1.86

One-Sample Test Test Value = 5

t The card division of DBBL is well structured to meet the demand

-30.469

df 49

Sig. (2-tailed)

Mean Difference

.000

-3.140

95% Confidence Interval of the Difference Lower Upper -3.35

-2.93


Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision Card division is not well structured that make client dissatisfied Hypothesis 9 H0: different card service like Int. Debit Card/ATM card can’t make the service dissatisfaction H1: different card service like Int. Debit Card/ATM card can make the service dissatisfaction Significant Level = 95% One-Sample Statistics N DBBL provide different card service like Int. debit card/ ATM card

Mean 50

Std. Deviation

Std. Error Mean

.782

.111

3.40

One-Sample Test Test Value = 5

t DBBL provide different card service like Int. debit card/ ATM card

-14.459

df

Sig. (2-tailed)

Mean Difference

.000

-1.600

49

95% Confidence Interval of the Difference Lower Upper -1.82

-1.38

Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision Different card service like Int. Debit Card/ATM card can make the service dissatisfaction Hypothesis 10 H0: Lack of promotion can’t create the service gap. H1: Lack of promotion creates the service gap. Significant Level = 95%


One-Sample Statistics N

Mean

DBBL use promotional and social responsibility to attract the customer

50

Std. Deviation

Std. Error Mean

.679

.096

1.78

One-Sample Test Test Value = 5

t DBBL use promotional and social responsibility to attract the customer

df

-33.541

Sig. (2-tailed)

Mean Difference

.000

-3.220

49

95% Confidence Interval of the Difference Lower Upper -3.41

-3.03

Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision Lack of promotion creates the service gap of DBBL. Hypothesis 11 H0: Lack of communication between management and employees can’t create the service gap. H1: Lack of communication between management and employees can create the service gap. Significant Level = 95% One-Sample Statistics N Management is more helpful with customer in DBBL

Mean 50

Std. Deviation

Std. Error Mean

.948

.134

2.72

One-Sample Test Test Value = 5

t Management is more helpful with customer in DBBL

-16.998

df 49

Sig. (2-tailed)

Mean Difference

.000

-2.280

95% Confidence Interval of the Difference Lower Upper -2.55

-2.01


Statistical Decision From the test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision Lack of communication between management and employees creates the service gap of DBBL. Hypothesis 12 H0: DBBL not charge low fees for maintain the accounts. H1: Charge low fees for maintain the accounts. Significant Level = 95% One-Sample Statistics N

Mean

DBBL charge low fees for maintain the account in their bank

50

Std. Deviation

Std. Error Mean

.832

.118

4.04

One-Sample Test Test Value = 5

t DBBL charge low fees for maintain the account in their bank

-8.159

df 49

Sig. (2-tailed)

Mean Difference

.000

-.960

95% Confidence Interval of the Difference Lower Upper -1.20

-.72

Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision DBBL charge low fees for maintain the accounts in their bank. Hypothesis 13 H0: DBBL not charge minimum amounts for accounts opening. H1: DBBL Charge minimum amounts for accounts opening. Significant Level = 95%


One-Sample Statistics N

Mean

For account opening DBBL charge minimum balance

50

Std. Deviation

Std. Error Mean

.864

.122

4.22

One-Sample Test Test Value = 5

t For account opening DBBL charge minimum balance

df

-6.383

Sig. (2-tailed)

Mean Difference

.000

-.780

49

95% Confidence Interval of the Difference Lower Upper -1.03

-.53

Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision DBBL charge minimum amounts for accounts opening in their bank. Hypothesis 14 H0: DBBL give you individual attention H1: DBBL don’t give individual attention Significant Level = 95% One-Sample Statistics N DBBL gives you individual attention

Mean 50

Std. Deviation

Std. Error Mean

1.090

.154

2.58

One-Sample Test Test Value = 5

t DBBL gives you individual attention

-15.704

df 49

Sig. (2-tailed)

Mean Difference

.000

-2.420

95% Confidence Interval of the Difference Lower Upper -2.73

-2.11

Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis.


Marketing Decision DBBL don’t give individual attention Hypothesis 15 H0: Management understands customer expectations. H1: Management doesn’t understand customer expectations. Significant Level = 95% One-Sample Statistics N

Mean

DBBL meets clients expectation perfectly by delivery quality service

50

Std. Deviation

Std. Error Mean

.982

.139

2.34

One-Sample Test Test Value = 5

t DBBL meets clients expectation perfectly by delivery quality service

df

-19.160

Sig. (2-tailed)

Mean Difference

.000

-2.660

49

95% Confidence Interval of the Difference Lower Upper -2.94

-2.38

Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision Management doesn’t understand customer expectations. Hypothesis 16 H0: Customer aware about every service of DBBL. H1: Customer unaware about every service of DBBL. Significant Level = 95% One-Sample Statistics N Customer know each and every service of DBBL right on time

Mean 50

2.36

Std. Deviation

Std. Error Mean

.851

.120


One-Sample Test Test Value = 5

t Customer know each and every service of DBBL right on time

df

-21.926

Sig. (2-tailed)

Mean Difference

.000

-2.640

49

95% Confidence Interval of the Difference Lower Upper -2.88

-2.40

Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision Customer unaware of every service of Dutch Bangla Bank Hypothesis 17 H0: Unavailable of call centre can’t make client dissatisfied. H1: Unavailable of call centre make client dissatisfied. Significant Level = 95% One-Sample Statistics N

Mean

DBBL has available call center in Dhaka

50

Std. Deviation

Std. Error Mean

.625

.088

1.76

One-Sample Test Test Value = 5

t DBBL has available call center in Dhaka

-36.676

df

Sig. (2-tailed)

Mean Difference

.000

-3.240

49

95% Confidence Interval of the Difference Lower Upper -3.42

-3.06

Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision Unavailable of call center make clients dissatisfied. Hypothesis 18 H0: Online banking fulfills customer need perfectly. H1: Online banking doesn’t fulfill customer need.


Significant Level = 95% One-Sample Statistics N

Mean

DBBL provides online banking that satisfy customer need

50

Std. Deviation

Std. Error Mean

.790

.112

2.22

One-Sample Test Test Value = 5

t DBBL provides online banking that satisfy customer need

df

-24.883

Sig. (2-tailed)

Mean Difference

.000

-2.780

49

95% Confidence Interval of the Difference Lower Upper -3.00

-2.56

Statistical Decision From the t test we can see that significance level is .000, which is less than .05, so accept the alternate hypothesis. Marketing Decision DBBL Online service doesn’t fulfill customer need. 9.1 Conclusion Coming at the end part of the research, I could develop certain perceptions and feelings resulting from being in touch with the whole issue and feel the need to include some of my personal suggestions to improve the overall service of the bank. The Government should develop a structure that regulates the activities of the private bank regularly. My research work has encountered several matters and the most important of it is that the government should come up and take initiative to stop the service dissatisfaction by implement the different rules for the bank. Bank itself also take some initiatives to improve their service as well as they must have the mentality of competition. 9.2 Recommendation There are given some recommendation: •

The research says there is a strong need for bank service indeed some of the bank doing not well in their operations.

They should promote their service more so that awareness is building more.

They can introduce new service like International debit card, Student Debit Card, Priority banking, call Center facilities.


Management more cooperates with front desk employees. Management gives the opportunity to front desk to share their views and opinions.

Management should understand customer expectations. For this they have to go for market research to know what customer want from them or from their competitors. If they find out solution than implement those to improve their service.

Recruit employees more based on the activities of the branch. If branch need more employees than give them more human resources.

Give the employees more training so that they can ensure to deliver the quality service to their clients.

For closing GAP management should learn what customer s expect from them. Management should increase direct interactions between managers and customers. Try to be improving upward communication from contact personnel to management and management should try to turn information and insights in to actions.

For closing GAP management should establish the right service quality standards by ensuring that managers and employees are skilled to deliver the quality service to the clients.

Management should regularly talk to the employees and ask them which task more critical to them and how it will improve.

Measure performance of the employees and provide regular feedback.

Reward employees regularly for their good performance.

Management should clarify the employees’ role clearly and precisely.

Need to create awareness among the clients about DBBL. For this management should do anything that acts as a reminder to the clients.

Should have the fighting spirit and ready to fight against any competitors.

Try to decrease the clients’ dissatisfaction level. If it is doing so that it automatically remove the service GAP of Dutch Bangla Bank. • • • • •

Annual Report (Yr 2004-2005), Dutch Bangla Bank Limited, Web Edition. Annual Report (Yr 2003-2004), Bangladesh Bank, Web Edition. Internet: www.DBBL.com Zeithhaml AV, Bitner MJ, “Services Marketing”, 4th Edition, Tata Mcgraw Hill edition. K Douglas Hoffman and John E. G. Bateson 2nd Edition Essential of Service Marketing



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