Chapter-01

Introduction

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1.1 Introduction
Retail banking is the cornerstone of modern financial services, designed to meet the personal
financial needs of individual customers rather than large corporations or institutions. In
Bangladesh, the banking sector has undergone rapid transformation in the last two decades, and
City Bank PLC has emerged as one of the pioneers in offering diversified and customer-centric
retail banking solutions. Established in 1983 as one of the first generation private commercial
banks, City Bank has gradually shifted from traditional banking practices to a modern,
technology-driven retail banking model.

The retail banking division of City Bank PLC primarily focuses on delivering a wide range of
financial products and services that include deposit accounts, savings schemes, consumer loans,
credit and debit cards, digital banking solutions, and remittance facilities. These services are
tailored to meet the everyday financial needs of individuals, salaried professionals,
entrepreneurs, students, and non-resident Bangladeshis (NRBs).

City Bank has also introduced several innovative products in the retail banking sector of
Bangladesh. It is the sole issuer of American Express Cards in the country, offering premium
benefits and global acceptance. With its flagship digital platform Citytouch, the bank has
redefined convenience for customers by enabling them to manage accounts, transfer funds, pay
bills, and apply for services anytime, anywhere. Furthermore, its extensive branch and ATM
network, along with Islamic banking windows and SME centers, ensures wide accessibility for
both urban and semi-urban clients.

The success of City Bank’s retail banking activities lies in its customer-centric approach, strong
technological infrastructure, and product innovation. By addressing diverse needs—ranging from
savings for children’s education to financing lifestyle aspirations through personal loans—City
Bank PLC has positioned itself as a trusted financial partner in people’s daily lives. Its retail
banking not only contributes significantly to the bank’s overall profitability but also plays a vital
role in promoting financial inclusion and supporting the economic development of Bangladesh.

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1.2 Origin of the Report:
This report is the partial accomplishment of the course requirement of the BBA program and
my honorable supervisor has advised me to do a report on Retail Banking activities of City
Bank at Gulshan Branch. Thus I joined in "City Bank Ltd." at Gulshan Branch and worked
with high degree of competence and lastly suitably submitted this report within due date.

1.3 Objective of the Report:

Broad Objective:
The broad objective of the study is to analyze “Retail Banking System of City Bank PLC”.

Specific objectives:
 To know the basic activities of retail banking of City Bank Ltd., Gulshan Branch.
 To compare pros and corns of retail banking.
 To appreciate the organizational environment.
 To know the official rules and regulations.
 Follow-up code and conduct

1.4 Scope of Study:

The report done on the basis of retail banking activities of City Bank Ltd. of Gulshan Branch
of year 2009. Retail banking consists of deposit, retail loan, debit card, credit card, and
foreign remittance. It also covers the organizations structure, different department of City
Bank Ltd. The main part of the report consists of the “Retail Banking System of City Bank
PLC”.

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1.5 Methodology of Study:
This report has been prepared on the basis of understanding gathered during the period of
internship. In order to prepare this report, I have also collected information from different section
and department of the bank. I have presented my experience and findings through using different
table and charts which are presented sequentially.

To prepare an authentic and informative report I studied all the company’s information, record,
company website and other relevant things. Beside these it was most significant to discuss with
employees of different section regarding various confidential records. Beside these I am going to
use interviewing method with structured questionnaire for collection of primary data from the
customers about their satisfaction level but I am not going to prepare any questioner for the
customer's use.

Primary Sources

 Discussion with the organization's stuff and executives in the principal Branch
and employees of Gulshan branch.
 Talk with banks client.
 Revise of relevant files.
 Direct observation of daily activities.

Secondary Sources
• Official records of City Bank Ltd.
• Annual reports of City Bank Ltd.
• Website of the bank.

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1.6 Limitations of the Study:

Following listed the major limitations that affected most:

 Complexity to gaining information from financial division of City Bank PLC.

 Non-availability of the most recent statistical data.
 They won't to disclose information that required for making assigned project.
 Because of the limitation of information, some assumptions were made. So there may be
some personal mistake in the report
 Besides this, it was very difficult to carry out the whole analysis on the basis of limited
scope of study.

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 Chapter-2
Company profile of City Bank PLC

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2.1 Company profile

City Bank PLC is a Bangladeshi private commercial bank headquartered in Dhaka.[3] The bank
provides products and services in retail banking, corporate finance, SME finance, digital
banking, asset management, equity brokerage, and securities. It has 134 branches and 47 sub
branches.[1] The bank is a licensee to issue Visa and MasterCard Debit and Credit Cards and it is
the sole licensee of American Express Cards in Bangladesh.

The bank is a real-time online bank, having its branches, SME/Agri branches spread across
Bangladesh along with a full-fledged Islami Banking branch. The managing director and CEO of
the bank is Mashrur Arefin.[5] City Bank has gone international establishing 10 branches and 1
representative office in Malaysia in 2013 and one subsidiary office in Hong Kong in
2019. International Finance Corporation solely has invested BDT 1.31 billion, attaining a 5%
share of City Bank.

It is a first-generation private commercial bank and it is one of the oldest commercial banks in
the country. Then known as "City Bank PLC", its operations were started on 28 March 1983 by
12 local businessmen of the country. Those directors commenced the journey with only BDT 34
million worth of Capital, which now is a respectable BDT 3.3 billion as capital & reserve. Deen
Mohammad, chairman of Phoenix Group, was the founder of City Bank.

City Bank PLC opened its first branch in the B. B. Avenue Branch in Dhaka. In 1986, City Bank
PLC was listed on the Dhaka Stock Exchange and in 1995, it was listed on Chittagong Stock
Exchange.

On its 25th anniversary in 2008, City Bank PLC revamped its image and services. This includes
the launch of a new logo, launched American Express.[13] credit cards, brokerage business, and
City Wallet (SMS Banking) service. The name of the bank was simplified to "City Bank PLC"
from its earlier "The City Bank Limited". The new logo, depicting a red and white checkered box
kite, was launched in July 2008.

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i) Corporate Investment Banking
ii) Retail Banking (including cards)
iii) SME Banking
iv) Treasury & Market Risks

Under a real-time online banking platform, these 4 business divisions are supported
at the back by a robust service delivery or operations setup and also a smart IT
Backbone. Such centralized business segment based business & operating model
ensure specialized treatment and services to the bank's different customer segments.
The bank currently has 86 online branches spread across the length & breadth of the
country that include a fully fledged Islamic Banking branch. Besides these
traditional delivery points, the bank is also very active in the alternative delivery
area. It currently has 26 ATMs of its own; and ATM sharing arrangement with a
partner bank that has 225 ATMs in place; SMS Banking; Interest Banking and so
on. Soon its Customer Call Center is going to start its operation. The bank has a
plan to end the current year with 50 own A TMs.
City Bank is the first bank in Bangladesh to have issued Dual Currency Credit Card. The bank
is a principal member of VISA international and it issues both Local Currency (Taka) &
Foreign Currency (US Dollar) card limits in a single plastic. VISA Debit Card is another
popular product which the bank is pushing hard in order to ease out the queues at the
Branch created by its astounding base of some 400,000 retail customers. The launch of
VISA Prepaid Card for the travel sector is currently underway.

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 Corporate Information:
Date of Incorporation March 14, 1983

Formal Inauguration March 27, 1983

Number of Branches 86

Paid up Capital 1, 188,000,000

Total capital 3, 156.25

Total asset 48,755.40

Total deposits 40,539.63

Table 0 1: overall financial activities

2.2 Vision of City Bank PLC:

"To be the leading bank in the country with best practices and highest social commitment"

2.3 Mission of City Bank PLC:

Mission of City Bank Ltd. is as follows:

 To contribute to the socio economic development of the country.

 To attain highest level of customer satisfaction through extension of services by
dedicated and motivated team of professionals.
 To maintain continuous growth of market share ensuring its steady growth
 To maximize bank's profits by ensuring its steady growth.

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  To maintain the high moral and ethical standards.
 To ensure participative management system and empowerment of human resources.

2.4 Strategies of CBL:

CBL believes in the practice of Market-Oriented Strategic Planning, developing and
maintaining a viable fit between the organization's objectives, skills and resources. The aim of
such approach is to shape and reshape the bank's businesses and services so that they yield
target profits and growth.

The strategic planning of CBL consists of two organizational levels, which are
-Location Based Strategy
-Business Level Strategy

2.5 Location Based Strategy:

Since the growth and profits of banking business largely depend upon the locations of branches
where large concentration of other businesses and industries are involved, CBL Main Strength is
its location based strategy.
The 86 branches of CBL are divided into six different regions, which are:

1. Dhaka Division, comprising 39 branches.

2. Chittagong Division, comprising 15 branches
3. Comilla Division comprising 06 branches
4. Sylhet Division, comprising 09 branches
5. Bogra Division, comprising 10 branches
6. Khulna Division, comprising 07 branches

The concentration of businesses and lifestyles of the people are not the same in these six
areas. So, the strategies of the six areas differ from one another; but they are designed with
distinctive local touch. Head office constantly monitors the progresses of all the six areas.

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The bank is not interested in launching more branches. Currently CBL is focusing in
strengthening the existing branches.

2.6 Business Level Strategy:

The business strategy of the Bank is to strengthen its retail business, following a
conservative lending approach. But the Bank's major portion of the profit generates from its
Retail banking and SME Banking.

2.7 Organizational Structure of City Bank PLC:

City Bank ltd. Maintain organizational hierarchy to locate and differentiate employees that is
varies upon employee's designation and work. Junior officer is the entry level post for the
entire officers.

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2.8 Functions of the Bank:

The bank performing following functions:

 Borrow money from different institutions and individual.

 Lending with or without security for local and international trade.
 Carrying out functions off oreign trade and foreign exchange business including
opening L/C, issuance of TIC, credit card, promissory note, approved securities etc.
 Buying and selling foreign currencies.
 Participates in the capital market as stock-broker and as a portfolio investor. o
Reliable safe custody of valuables.
 Providing excellent remittance facilities.
 Provides withdrawal facilities of deposits.

2.9 Departments of CBL:

 Human resources Department
 Finance Department
 Audit & Inspection Department
 Marketing Department
 Retail Banking & Consumer Banking Division
 Corporate Banking Division
 Treasury Division
 Trade Service & Correspondents Banking Division
 Loans and advance Division
 SME Banking Division
 Card Division
 Information & Technology Division.

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2.10 Products Offered by CBL:
City Bank Ltd. is a rapid growing commercial bank in the country. It's competing in the market
with wide range of product and services that plays a vital role in its attainment. The
CBL concentrates the following categories of banking services-

Corporate Banking Retail Banking SMEBanking Treasury

Working Capital Deposit City Muldhon Overnight

Finance - City Onayash City Sheba City Deposit Term
Trade - City Shomridhdhi Shulov Deposit Foreign
Finance - City Projonmo Exchange Local
Short/ - City Ichchapurun Currency Spot
midterm L and Forward
Finance o Derivatives
Project Finance a
Islamic Finance n
Structured Finance - City Drive
Cash Management Table 02: Products of CBL

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 Chapter-03
Internship job and Duties

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Internship job and duties:
City Bank Ltd. is one of the rapid growing banks in the country. CBL widely conducts
business activities with 86 of its branches around the country. According to the requirements
of course fulfillment I joined in City Bank Ltd., at Gulshan Branch as an internee on
the date of 8 September 2009. I have worked for three months with different section under
the supervision of professionals under different department. In the beginning Mr. Zahidur
Rahman, Cluster head and Manager of City Bank selected me in operation banking
department under the supervision of Syed Zaheed Subhan. Mr. Zaheed Subhan is the AVP
& senior Branch operation manager of City Bank at Gulshan branch, Mr. Zaheed Subhan
was very cooperative in nature and there was immense possibility to learn.

Close to this I had to work with some other employees regarding some vital issues like -
matching general ledger (GL) of retail bank accounts, update customers information,
collect necessary documents from customers, fill-up debit card forms, update KYC
(know your customers) for new and existing customers, provide information about
American Express card to the customers and help retail department managers (Branch
relationship manager) to fill-up documents etc. According to the office rules and regulations I
have proceed like a regular employee. That's why I had to serve from 10:00am to 6:00pm.
After entering into the office I would sign attendance sheet like other officials, and then sit
on assigned section and there was specific desk for me. Within office hour every
employees of relevant section guided me in order for better improvement.

As an internee I also had some certain responsibilities and duties that had to perform
very sincerely. Since initially I was in retail banking department there I had to work as an
assistant of different employee who was working on that relevant department.

During internship period I have learned lots of things. Few of them are listed below:

• Retail banking activities:

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I had to work on retail banking division of Gulshan Branch. I had to collect necessary
documents from the customers those who came to open account of Gulshan Branch.
Documents like TIN certificates, Trade license, National ID Card, Photo etc.

• Matchinggeneralledger (GL) of retail bank accounts:

I used to work with relationship manager to match general ledger of outstanding pay orders. I
had match credit and debit balance of outstanding pay orders.

• Update customers information:

My prime job at Gulshan Branch was to update customer's information. Customers who opened
their bank account before 2004, they need to update their information and also photo, address,
transaction profile etc. and I had to collect all information from the customers.

• Fill-up debit card forms:

I had to collect debit card requisition from the customers and filled up necessary papers. After
filled up debit card form I had to send the papers to the card division of head branch.

• UpdateKYC (know your customer) of retail banking department:

I had to prepare KYC (know your customer) for all kind of account. According to Bangladesh
Banks rules and regulation all Banks have to collect photo, National ID Card, and other
document for verification of customer's information. KYC helps to identify risky
[Link] place to prevent money laundering and KYC form contain different information
like source of fund, profession, amount transaction etc.

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• Provide information about American Express card:
I had to work on retail department and provide information about credit card to the
customers. Customers used to ask me about American Express Cards feature, benefit,
processing fee etc.

• Account opening of savings bank account :

I had to open savings bank account and collect necessary documents from the customers.

• Address change & Name correction of the customers:

My key job was to correct customers name and address if changes necessary. I had to
contact with customers via phone and had to inform that their address or name have to correct.

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 Chapter-04
Retail Banking Activities of CBL

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4.1 Retail Banking Activities of CBL:
City Bank Ltd. recently has started its journey in Retail Banking. More than 700 staffs have been
trained so far on the vital concepts of service excellence and sales. In the product side ATM fleet
has been launched, Debit card and credit has been issued, SMS Banking has been offered, 3 new
deposit products have been introduced, manifold in the endeavor to build a Retail Banking brand
namely "City Retail Happiness Counts".
Definition of retail banking:

Retail banking refers to banking in which banking institutions execute transactions directly with
consumers, rather than corporations or other banks. Services offered include: savings and
checking accounts, mortgages as well as personal loans, debit cards, credit cards, and so forth.
Retail banking is a banking service that is geared primarily toward individual consumers. Retail
banking is usually made available by commercial banks, as well as smaller community banks.
Unlike wholesale banking, retail banking focuses strictly on consumer markets. Retail banking
entities provide a wide range of personal banking services, including offering savings and
checking accounts, bill paying services, as well as debit and credit cards. Through retail
banking, consumers may also obtain mortgages and personal loans. Although retail banking
is, for the most part, mass-market driven, many retail banking products may also extend
to small and medium sized businesses. Today much of retail banking is streamlined
electronically via Automated Teller Machines (ATMs), or through virtual retail banking
known as online banking.*

Retail banking aims to be the one-stop shop for as many financial services as possible on behalf
of retail clients. Some retail banks have even made a push into investment services such as
wealth management, brokerage accounts, private banking and retirement planning. While
some of these ancillary services are outsourced to third parties (often for regulatory
reasons), they often intertwine with core retail banking accounts like checking and savings to
allow for easier transfers and maintenance.*

Generally Retail Banking Division of City Bank contains following Sections and activities:

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1. Deposit Section
2. NRB (Non Resident Business)
3. Loan Section and
4. Card Section

One of the most significant success stories of last fifty years' banking industry globally has been
the conceptualization and innovative execution of banking with individual customers,
their friends & families. The industry has termed it as Retail Banking or Personal
Banking or Consumer Banking; and it has now - at a very rapid pace - become the major
revenue line for most of the top banks in the world.

City Bank has started its journey in Retail Banking with new mantra - "City Retail - add a little

City to your life"

They want City Bank to become the most preferred bank to all individual clientele of
the country, at least of the cities and towns where we operate. We want to provide our customers
the best-in-class services, innovative products and financial solutions from smart outlets - all
with a big smile that conveys and generates happiness all the way.

In line with the Bank's strategy of making banking services more accessible to customers, City
Bank is planning to launch proper banking services and business in all branches. All branches of
the bank will be brought under sales and services model focusing retail banking business while
giving services to all other customers of different business units.
Understanding customers' savings trend and market demand the bank launched 4 new deposit
products which are: City Onayash, City Ichchapurun, City Shomridhdhi and City Projonmo.
City Onayash is daily interest bearing and monthly interest paying savings account, City
Ichchapurun is a three year and five year time deposit product which offers monthly interest.

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City Projonmo a deposit product for minors is a monthly savings scheme that offers attractive
maturity value and is backed by insurance.

4.2 Deposits collection through Retail Banking:

In order to become a customer of a bank at the beginning need to open deposit account with
a particular bank and then a person logically allowed going for transaction. Through this
process banker-customers relationship begins and continue until violation of any condition
by the parties. According to the regulation of central bank and commercial banks there
some restrictions on opening of deposit account, but after fulfill some certain conditions
and requirements anybody can be an account holder.

As we have seen three common deposits are widely use by the customers and maintains by
the bank such Current, Savings and Fixed Deposits. Beside these there are some other unique
deposit product like City Onayash, City Shomridhdhi, City Projonmo and City Ichchapurun
Following table shows Scenario of last six months deposit-

Name of Deposit Amount (Tk. in Crore) Percentage

Current Deposit 42.05 16.82%
Savings Deposit 62.26 24.90%
FDR 120.54 48.21 %
City Onayash, City Shomridhdhi, City 25.15 10.06%
Projonmo and City Ichchapurun
Total 250.00 100%
Table 03: situation of last several months deposit

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How customers are aware about City Retail Banking?
The customers of City retail have learned about retail banking through newspaper,
relatives, different campaign, and customer service team of CBL.

The figure shows that a maximum number of people learned about City retail banking of
44% through Customer service of CBL. Second largest numbers of customers have learned
through publicity campaign (24%) of City Bank Ltd. 16% of total customers have awarded
throughout newspaper and 10% have studied by relatives. Only 6% of the people have
heard about City retail banking through others.

60.00%
48.21%
50.00%
40.00%
30.00% 24.90%
20.00% 16.82%
10.06%
10.00%
0.00%

Figure .1: recognize percentage about City retail

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4.3 Deposit Section:
Current Account:
Most businessmen maintain Current Deposit accounts in order to make their daily
business activities. This account's funds change most frequently than any other accounts
because customers use to withdraw and deposit funds in regular basis. Current Deposit Account
may be opened by individual, firm, company and club, association, body corporate etc.

Characteristics of Current Account:

 No interest is payable on balances of Current Deposit Accounts.
 There is no restriction on withdrawal, but in case of large amount requires prior notice (if
amount above 3 lacks.)
 Minimum balance to be maintained in the account is Tk.10000/-
 Bank at its discretion may close any account with prior notice to the account holder.
 In case of closure of account by the account holder, Branch shall recover closing charges
as per schedule of charges.
 Banker does not provide any pass book for this account.

4.4 Savings Account:

This account is primarily for small scale saver. Any adult and mentally smooth person can open
this type of account through the fulfillment of required conditions. Saving account is convenient
for the people of the lower and middle classes who wish to save a part of their current incomes to
meet their future needs and also intend to earn an income from their savings.

However account holders can not withdraw money more than two times in a week but he can
deposit any time as he/ she wishes. If any customers want to withdraw large amount of money he
have to notice the bank early. Abreast these some other relevant points listed below:

Characteristics of Savings Account:

Basic characteristics of savings bank account are as follows:

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  Savings Bank Account may be opened in the name of adult individual who are mentally
sound and also jointly in the names of two or more persons payable to either or both or all
of them or to the survivor or survivors.
 Savings Bank Account may be opened in the name of a minor also.
 Saving Bank Account may be opened in the names of clubs, societies, association and
similar institutions and even by government and semi-government offices.
 Account shall be opened with at-least a minimum initial deposit of Tk. 500.
 Interest at the rates fixed by Head Office from time to time is applied half-yearly on the
balances held on daily product basis.
 Not more than one account is allowed to be opened in the same name. But this will not be
applicable to parents willing to open more than one account in his/ her name in respect of
each minor child.
 Savings Bank Account shall not be allowed to be overdrawn under any circumstances.
 Savings Bank Account should not be allowed to be operated like Current Account
 Not more than 25% of the balance can be withdrawn without 7 days notice. Withdrawals
in the account shall be allowed twice in a week.
 No interest shall be paid to such accounts.
 Bank shall provide monthly-computerized statement of accounts to account
holders instead of passbook.
 Bank may at its discretion close any account with prior notice for repeated return
of Cheque due to insufficient balance.

Interest Provisions:
1. The current rate of interest is 4.00% per month for SB account. Monthly product is calculated
for SB accounts.
2. No interest will be given if:
any withdrawal made over Tk. 50,000/- without notice Two time withdrawal within a week.
Once over Tk. 25.000/- withdrawal within a week. Once over Tk. 25.000 I withdrawal Any day
balance below Tk. 1000/- If withdrawal is 25% of total balance. More than two withdrawals in
a week.

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Customer Benefits:
• Cheque-book facility
• Opportunity to apply for - safe deposit locker facility
• Collect foreign remittance in both T.C. & Taka draft
• Utility payment service
• Transfer of fund from one Branch to another by

-Demand Draft
-Mail Transfer
-Telegraphic Transfer

• Transfer of fund on Standing Instruction Arrangement

• Collection of Cheque through Clearing House.
• Online banking service

Following briefly discussed about demand draft, mail transfer and TT:

Demand Draft:

Among different financial instruments Demand Draft is most significant and useful. Generally
demand draft issued by a particular Branch to another Branch on behalf of customer to pay a
certain amount of money.

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Telegraphic Transfer:
Due to technological advancement it is possible to transfer money over telegraphic modes.
Sometimes customers need money urgently on that circumstances they ask for telegraphic
transfer. There are some common modes for this type of transfer such as Telegram, Telephone,
Telex and Fax. Though Telegraphic Transfer is expensive but it is fast and convenient.
Customers need to pay for this service according to the rate determined by the central bank.
Telegraphic Transfer commission calculates as per Bangladesh bank rate min. Tk. 25 and telex
charge to be taken as Tk. 30 per minute.

Pay Order:
Basically pay order means order to pay a certain amount of money to a specific parties
mentioned on the Pay Order. Once upon a time Pay Order would issue only to effect banks own
local payment but situation has been changed now Pay Order issues on behalf of customers as
well. Pay Order is not transferable and there is no chance to be dishonored like check does.
Basically can be purchased by three different modes such as:

Pay order (PO) is a current liability for the bank and it required to be discharge against payment
either in cash or through an account.

4.5 Short Term Deposit Account (STD):

Deposits held in this account are payable on short notice. Normally corporate bodies, bank
and financial organizations invest their funds temporarily. Now-a-days, private
individuals having sound financial means also open this type of deposit accounts.

Type of Deposit Term Deposit Account (STD) Interest Rate

Bank Deposit - 1.5%

Other than Bank Deposit Up to tk. 5 crore 2.00%
Other than Bank Deposit Above tk.5 to tk.10 crore 2.50%
Other than Bank Deposit Above tk.10 crore 3.00%
Table04: short term deposit rate

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The following rules shall apply:

 Deposits held in STD Account are payable in 7 (Seven) days prior notice.
 Cheque books may be issued to account holders for withdrawal of funds.
 Repeated withdrawal without notice shall be discouraged.
 Interest is payable on balance held on daily product basis as per computer program
used by bank.
 For opening STD Account, AOF used for Current Deposit Account shall be used.
 Other formalities are similar to Current Deposit Accounts.

4.6 Fixed Deposit Account:

Fixed deposits helps customers for long-term investments and wish to earn higher interests on
customer's savings, fixed deposit assist customers to reserve money for long time and
get attractive interest from the reserve amount of money. Interest rates of deposits are given
below:

Fixed Deposit Interest Rate

One month 4.00%
Three month 6.00%
Six month 7.00%
One year 8.50%
One year City Nokshi 7.00%

Table 05: fixed deposit interest rate

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Characteristics of Fixed Deposit Account:

Basic characteristics of savings bank account are as follows:

 Fixed Deposit is neither transferable nor negotiable.

 Fixed Deposit Account may be opened by individuals, firms, companies, corporate body
etc.
 Fixed Deposit Account shall be opened for minimum 1 months and maximum period
has no limit.
 Rate of interest is higher in FDR.
 Interest on deposits shall normally be payable on maturity along with principal.
 Customers may however, have the option of withdrawing interest accrued after every six
months provided that the account is for more than 24 months period.
 Interest ceases to accrue on overdue Fixed Deposit Account. Branchmay, however,
allow interest to exceptionally valued clients on deserving cases with concurrence
of Head Office.
 FDR may be encased before maturity on written request of the depositor. For
payment of interest, Branch shall follow Head Office instruction in this regard from
time to time.
 In case of FDR in joint names, written consent of all holders shall be obtained
before premature encashment, irrespective of instruction provided for operation of the
account.
 Account Opening Form for Fixed Deposit Account contains relevant columns
for mentioningall terms including rate and term of deposit and operational instruction.
The bottom part of the form shall be used as credit voucher for the deposit.
Specimen Signature Card duly signed by the depositor to be obtained with clear
instruction for operation of the account.
 The signature of the depositor is to be admitted by authorized officer both in AOF
and S.S. Card.
 Particulars of the account shall be entered in the FD Account Opening Register
and a control number be allotted in computer sequence order with oblique against

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 the printed number of FDR. The complete number shall be quoted/ mentioned in all
references.
 On completion of all formalities, including deposit of fund, FDR shall be issued
and signed by two authorized officers. The FDR shall be delivered to depositor against
acknowledgement on the reverse of the counter foil.
 The AOF will be retained in file and the S.S. Card shall be kept in S.S. Card Box under
custody of the concerned authorized officer.
 Renewal of Fixed Deposit Account shall be allowed on written request of the
depositor, if no intimation is received, the account shall be deemed to have renewed
under the existing terms and conditions automatically.
 FDR can be accepted as security against credit facility.

4.7 Special Account under Deposit Section:

City Onayash:

City Bank started City Onayash with the slogan "earn easy on your savings account, earn profit
every month" City Onayash is a unique kind of savings account which calculates interest on your
daily balance and pays interest to you every month. It is a major departure from the
conventional savings account available in the market. All such accounts calculate interest on
the average or lowest balance of the month, while City Onayash does on daily product basis. Not
only that, while those conventional savings accounts pays interest only twice a year - in
December and June - City Onayash pays it to you every month.

Interstate 3.00% on deposit, (in case of below 200 tk. Interest accrued will not be credited)

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City Shomridhdhi:
City Shomridhdhi is an exceptional DPS product that is distinctively more attractive than the
prevalent DPS products in the market. Customers will receive a hefty sum at the end of the term
against monthly deposit of small installments. It's a perfect way to secure financial future for
customers.

City Shomridhdhi Interest rate

Three year 8.5%
Five years 8.5%
Seven years 8.5%
Ten years 8.5%

Table 06: interest rate of City Shomridhdhi

4.8 NRB (Non Resident Business):

City Bank's Foreign Remittance unit meets growing customer needs for fast, secure &
easy money transfers to an extensive range of destinations. Being a committed bank to its
customers, CBL go all the lengths to remit your hard earned money safely to your loved
ones. With CBL, apart froma range of high-class modem remittance solutions, you will get
peace of mind which we believe counts to most.

Facility:
City Bank Limited has 86 online branches across the country; besides, the Bank has a
strong remittance network with other major banks of the country. Therefore, wherever your
account is, we are able to send your money instantly. Our Foreign remittance service
personnel will be there to help you out. If you are not an account holder, then please open
an account of your choice with us to receive your remittance at earliest convenience.
CBL understands the value of your precious time. That's why have made the payment
procedure simple & easy. You have the privilege of enchasing the remitted money
instantly from your Branch counter without going through any hassle. That is to say, if you

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are an account holder of City Bank, we can instantly credit the money to your account or pay
cash to the receiver.

4.9 Product preference of City retail:

Following graph shows the best offer from City Bank in retail banking segment. We see 42%
customer think retail deposits like City Onayash, City Shomridhdhi, City Projonmo and
City Ichchapurun are the best offer from City Bank with normal deposit products. Again
24% customer think retail loans such as City drive, City express and City solution are the
most attractive offer in retail banking. On the other hand 18% customers on remittance and
16% customers' voted for credit card respectively (See figure 1.2).

24%

42% Deposit products

Retail Loan
Credit Crad
Remittance
16%

18%

Figure 1.2: Preference of Product

City Cards:
City Bank currently has more than ten lack customers those who retain debit cards and credit
cards including dual currency cards. Recently City Bank have launched new product called
Visa American Express card.

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Visa Debit Card:
Visa Debit Card of City Bank designed with Visa Electron branded that becomes hassle-free and
safe; which makes customers proud owner of a meaningful plastic card.

4.10 Features of the City Visa Debit Card:

 Cash withdrawal from 500+ Visa ATMs 24/7 /365 all over the country
 Shop and dine at hundreds of merchant Visa outlets all over the country
 Balance enquiry
 PIN Change
 Mini statement
 Cash withdrawal@ Taka 12 per transaction at 583 DBBL ATMs
 Cash withdrawal @ Taka 10 per transaction at 110 Q-cash network ATMs

Eligibility:
Customers who have an individual and have a savings, current or STD account in CBL,
customers are eligible to avail this card. Just drop in any nearby CBL branch, collect an
application form and submit duly filled up form. Within shortest time (within twenty
days) customers will get the card delivered at your mailing address or at your designated branch.

City Credit Card:

City Bank is the first bank to issue Dual Currency Credit Card in Bangladesh. This card enables
customer's simultaneous usage of card both in home and in abroad. Customers do not need to
carry two different cards for the same purpose.

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Features:
 Variable Interest Rate
 EMI Plan
 Balance Transfer
 Round the clock cash withdrawal facility at any Visa branded ATM throughout the world
 Round the clock purchasing power for goods and services at any Visa branded POS
outlet
 24% interest on Cash Advance
 No cash Advance fee at CITY ATMs
 Lowest Annual/Renewal Fee
 International Roaming facility
 Internet Transaction
 Convenient Repayment option
 statement
 Limited Lost Card Liability
 Secured with your Photo - Photo Card
 24 hours customer service help desk

Eligibility:
 Bangladeshi Nationals
 Age range for primary card holder is 18 years to 60 years
 Age range for supplementary card holder is 18 year to 60 years
 Age bar can be relaxed for secured cards

Minimum Gross Monthly Income(GMI) silver card Tk 15,000

Minimum Gross Monthly Income(GMI) gold card Tk 30,000

 Minimum 6 month permanent employment for salaried executives (this indicates
total length of service as a total of all companies he or she has worked for), and 1
year of experience in business or practice for self employed professionals and
business person.

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Local Visa Credit Card:
This is a local Visa Credit is valid only in It can only be used
Card which Bangladesh. in local

Usage: Local Classic/Silver Card (For Domestic use only)

Limit: Local Classic/Silver Card BDT 10,000- BDT 49,999

Visa gold local:

This type of card is taka card of which acceptance jurisdiction is only in Bangladesh
and transaction currency is BDT. The differences between these two cards are higher credit limit
than classic card. Credit limit of Visa Gold card is ranging from BDT 50,000 to BDT 5, 00,000.
This type of card has been designed for the higher earner category customers.

Usage: Local Gold Card (For Domestic use only) Limit: Local Gold Card BDT 50,000 - BDT
500,000

Visa gold dual:

This is a high value dual card remaining other features same with classic dual. Gold dual is also
for the higher earner category customers and its credit limit is USD 1,001 to 4000 and BDT
50,000 to BDT 500,000. A secured dual card's limit will be maximum USD 28,000 against lien
on RFCD or ERQ account.

Usage: Dual Gold Card (For both International & Domestic use)
Limit: Dual Gold Card BDT 50,000 - BDT 500,000 + US$ 2,000 - US$ 3,000

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American express credit card:
City Bank has recently formed an alliance with the global financial giant American
Express Company to introduce the internationally acclaimed American Express
credit cards in Bangladesh. Through the move, American Express, which claims to be the
world's largest issuer of credit and charge cards with 92 million card members globally, has
entered a country with one of the smallest credit card user base, apparently to explore
this highly untapped market. American Express Card members will also have access
to the global American Express Selects(SM), which provides benefits and offers from
thousands of retail stores, hotels and restaurants when traveling overseas. At the time of
launch, Card members in Bangladesh will have access to over 60 American Express
Selects partners, including some of the finest restaurants and retailers where they can
enjoy exceptional savings and privileges.

Through a formal launching of two American Express credit cards namely•

 the Green/Blue card and

 The Gold card.

American Express Gold Credit Card gives the following benefits:

 Complimentary companion return ticket from Dhaka to Kolkata on Jet Airways
 Complimentary buffet at The Westin Dhaka round the year
 Complimentary access to City Bank American Express lounge at Zia airport
 Complimentary access to country's first Fast Track channel at Zia airport immigration
 6% cash back at Agora Superstores & Nandan Megashops
 Travel Emergency & Medical Assistance abroad
 Double Benefit City Shield & All Accident Insurance

36
American Express Credit Card gives the following benefits:

 Complimentary companion Mercedes Benz coach return tickets from Dhaka to

Cox's Bazaar on Baghdad Express
 Complimentary companion tickets for entry & all rides for Fantasy Kingdom and
Water Kingdom
 6% cash back at Agora Superstores & Nandan Megashops
 Travel Emergency & Medical Assistance abroad
 Double Benefit City Shield & All Accident Insurance
 American Express Selects TM-Take advantage of special savings and offers in some
of your favorite restaurants and shops in Bangladesh and across the glob
 Financial flexibility
 Double Benefit Insurance (DBI) Card members are insured on the outstanding
balance of their American Express Credit Card in the unfortunate event of death
or permanent total disability (PTD). A Card member's full outstanding balance
will be paid off and in addition, an equal amount will be paid to the nominee of the
Card member.
 All Accidental Death Insurance (AADI)
 A Card member automatically receives AADI free of cost upon enrolling for DBI.
This covers death due to any accident. The coverage is BDT 150,000 for an American
Express Credit Card member, which will be paid to the Card member's nominee in
case of an accidental death. Terms and Conditions apply.
 Global Services
 Card services

Fifty new ATMs are projected to be launched in 2010 to facilitate reach and convenience
and thereby help retail bank to increase its customer base significantly. Already 20
ATMs are in operation at Dhaka City and total 26 are in operation in all over
Bangladesh. City Bank customers also can use the Dutch-Bangla Bank's large ATM fleet
as well as Q-cash network ATM's. City Bank Ltd. has already set up a Retail Finance
Center, centralized retail credit and collection management unit, to launch retail loans for

37
individuals. Launch of attractive loan products including life style loan, car loan, salary
loan, and professional loan is currently in the bank's product offerings.

The Bank has received inward remittance of Tk. 8000 million in the year 2009. Retail
is increasing Non Resident Business (NRB) unit with new business plans and
dimensions. The Bank is going to build new relationship with key exchange houses based
mainly in the Middle East and United Kingdom and active efforts are underway to spread it
other important countries including Saudi Arabia. The bank recognizes the huge potential of
this business and understands the expectation of this highly sensitive customer segment
and is equipped with modem technology to cater those requirements with superior service
capabilities.

4.11 Loan Section:

Another vital function of retail banking is providing loan to its customers. As a
consumer banking retail banking has launched retail loans for individuals. City Bankhas
launched attractive loan products including life style loan, car loan, salary loan, and
professional loan is currently in the bank's product offerings under two different names such
as:

1. City Drive
2. City Solution
3. City Express

Following elaborately described these three loans offer:

City Drive:

Owning a car is no longer a luxury. Car for family is now a matter of fulfilling a
necessity. Appreciating that basic need, City Bank introduces City Drive, a tailor-made
auto loan scheme for individuals.

38
Features:
 Loan amount ranging from Tk. 300,000 to Tk. 20, 00,000
 Car financing up to 90% of reconditioned or new vehicle price
 Lower interest rate & up to 100% financing for loan against cash security
 Loan tenor 12 to 60 months
 No hidden charges
 Competitive interest rate
 Loan processing fee 1 % of loan amount

Eligibility
• Age: 22 to 60 years
• Experience: Salaried executive total 1 year including 6 months with current employer
• Experience: Business person/paraprofessionals 1 year
• Monthly income: Minimum Tk. 30,000

City Solution:
City solution is an exclusive offer for consumer. It accepts loans on different purpose such
as:
1. Vacation Loan
2. Study Loan
3. Medical treatment Loan
4. wedding Loan
5. House renovation Loan
Whatever the occasion or requirement may be, City Solution - any personal loan from
City Bank- is there to solve all customers problems and to fulfill all dreams. Customers can
access this facility from bank's selected branches across the country.

Features:
• Loan amount ranging from Tk. 50,000 to Tk. 1000,000
• Loan tenor 12 to 60 months
• No guarantor required for the loan amount up to Tk. 3 Lac

39
• No hidden charges
• Competitive interest rate
• Processing fee 1 %

Eligibility:
In order to get loan customer have to be eligible for that and need to fulfill some requirements.

 Age: 22 to 60 years
 Experience: Salaried executive total 1 year including 6 months with current employer
 Experience: Business person 2 years
 Experience: Professional 1 year
 Minimum monthly income: Salaried executive Tk. 15,000, self employed Tk. 25,000,
and business person Tk. 30,000.

City Express:
City Express Cash is a fully secured and revolving facility for any legitimate purpose.
The security for the loan should be ideally City Bank Ltd. Fixed Deposit Rate. Bank would
finance against clients CBL FDR or other banks/NBFis security. City Express Loan is a fully
secured and terminating (EMI Based) loan facility for any legitimate purpose. Bank would
finance against clients CBL FDR or other bank FDR/NBFis security. This is any purpose
secured loan for any legitimate purpose.

Features:
 Minimum loan amount Tk. 50,000 & Maximum 90% of the Present Value of CBL FDR
or any other security
 Quick processing
 Minimum documentation
 Loan tenor 12 to 60 months
 No guarantor required
 No hidden charges

40
4.12 Multi Product sales of City Bank PLC

Multi-Product Sales (Cross-Selling) at City Bank PLC

1. Bancassurance: Life & Non-Life Insurance via Banking Channels

City Bank has partnered with multiple insurers to offer insurance products directly through its
branches, sub-branches, and Citygem centers:

 Life Insurance: In collaboration with Guardian Life Insurance Limited, City Bank
offers products such as the Child Protection Plan, Guardian Probridhi (Tax Saver), and
Nischit Pension [Link] Bank PLC+1
 Non-Life Insurance: Insurance solutions from Reliance Insurance Limited, City
Insurance PLC, and Pioneer Insurance Company Limited are similarly available
under bancassurance arrangements. City
 The bank has also received regulatory approval from Bangladesh Bank to operate its banc
assurance business—marking a pioneering move in the country’s banking [Link]
Bank PLC

Takeaway: Customers can conveniently access both banking and insurance offerings in a single
place—City Bank branches—enhancing convenience for customers while boosting revenue
streams for the bank.

2. Comprehensive Retail Offerings Beyond Banking

City Bank strengthens its retail portfolio through unique lifestyle and digital service partnerships:

 Complementary Health Screening: Through an MoU with Evercare Hospitals,

Citygem Priority Banking clients receive an annual complimentary health check-up (for
themselves and a companion).City Bank PLC
 E-Commerce Perks: A collaboration with Chaldal grants City Bank American Express
cardholders a year-round 5% discount on purchases via Chaldal’s platform, enabled
through City Bank’s e-commerce payment [Link] Bank PLC

41
3. Digital and Payment Ecosystem Integration

City Bank actively expands its digital footprint and cross-channel connectivity:

 Mastercard Payment Gateway Services (MPGS): Enables secure digital payment

solutions, including tokenization, recurring payments, and merchant dashboards—
enhancing merchant and customer experiences [Link] Bank PLC
 aamarPay Integration: City Bank facilitates online collections and payments via
aamarPay, integrated within its internet banking platform, [Link] Bank PLC

4. Corporate Deals with Personal Impact

Even corporate-level agreements often produce consumer-relevant benefits:

 IFAD Motors Partnership: City Bank provides nationwide cash management solutions
for IFAD Motors (distributor of Royal Enfield bikes), which indirectly supports retail
auto-financing [Link] Bank PLC
 Navana Auto Loan Arrangement: A previous tie-up with Navana Limited offered
customers special rates, reduced processing fees, and cash discounts when purchasing
Toyota Corolla Altis models.

42
4.13 SWOT Analysis:

Strengths:
 The City Bank Limited provides its customers excellent and consistent quality in every
service. It is of highest priority that customer is totally satisfied.
 The City Bank Limited draws its strength from the adaptability and dynamism it
possesses. It has quickly adapted to world class standard in terms banking services. NBL
has also adapted state of the art technology to connect with world for better
communication to integrate facilities.
 All the level of the management are solely directed to maintain a culture for the
betterment of the quality of the service and development a corporate brand image in the
market through organization wide team approach and open communication system
 The City Bank Limited utilizes state of the art technology to ensure consistent quality and
operation.
 On of the key-contributing factors behind the sources of NBL are its employees who are
highly trained and most competent in their own field. NBL provides their employees
training both in- house and outside job.
 The City Bank Limited is free from dependence from the ever-disruptive owner supply of
our public sources. The required power is enervated by the company through enervator
fed on diesel. Water enervation at present is also done by deep tube wells on site and is
abundant in quality.

Besides these the following components are considered as the strengths of The City Bank
limited

Weaknesses:
The weaknesses of The City Bank are the following
 Asset infection rate is still high
 Relative high overhead expense
 Average corporate governance
 Marginal Liquidity Position
 High Large loan exposure
 Average human resource

43
The City Bank has very limited human resources compared to its financial activities. There are
not many people to perform most of the tasks. As a result many of the employees are burdened
with extra workloads and works late hours without any overtime facilities. This might cause high
employee turnover that will prove to be too costly to avoid.

Opportunities:
 SME and Agro based industry loan
 Real Time online banking
 Credit card in dual currency
 Government of Bangladesh has rendered its full support to the banking sector for a sound
financial status of the country, as it is becoming one of the vital sources of employment in the
country now. Such government concern will facilitate and support the long term vision for
The City Bank Limited.
Emergence of e-banking will open more scope for The City Bank to reach the clients not only in
Bangladesh but also in global arena. It is also facilitate wide area network in between the buyer
and the population units of The City Bank to smooth operation to meet the desired need with
least deviation.

Threats:
 Increased competition in the market for quality assets
 Market pressure for increasing the interest rate
 Market pressure for increasing the SLR.
 Market pressure for increasing the provision against loan loss.
 The worldwide trend of mergers and acquisition in financial institutions is causing
concentration the industry and competitors are increasing in power in their respective
areas.
 As previously mentioned, the world is advancing towards technology very fast.
Through The City Bank Limited taken effort to join the stream, it is not possible to
complete the mission due to the poor technological infrastructure of our country.

44
 Chapter-05
Findings, Recommendation & Conclusion

45
5.1 Findings:
During the period of internship I have achieved vast experiences that enrich my knowledge of
banking extensively. Here I have tried to present my experiences and knowledge in order to
provide a better judgment. CBL is one of the fasts growing and committed private commercial
bank in the country. It conducts business activities efficiently around the country to achieve its
objectives, and goals and gradually forwarding towards its mission and vision. The bank
have been achieving continuous growth rate in all spares of banking operation since its
establishment. All of its departments are working rigid for better customer services. Abreast
these, I also have found the following essence through careful examination.

Findings about the Organization:

 Understanding customers' savings trend and market demand the bank launched four new
deposit products which are: City Onayash, City Ichchapurun, City Projonmo and City
Shomridhdhi.
 At present CBL has enormous number of credit cards in the market but the bank is
planning to enrich its City Debit Card with all dynamic features.
 Most of the users of credit card are male.
 26 ATMs are in operation and City Bank customers now can use the Dutch Bangla
 Bank's large ATM fleet and also Q-cash marked ATM booths.
 42 % customer think retail deposits are the best offer from City Bank whereas 24%
customer think retail loans are the attractive offer in retail banking.
 Accordingly large number of customers are using deposit product right now.
 Major portion of customer think cash withdrawal facility provided by the bank is good
 In terms of fees and charges customers are satisfied with current fees and charges.
 Account opening procedure is comparatively critical.
 City Bank has covered huge number of debit cards in the market.

46
5.2 Recommendation:
After analysis of all gathered information and other relevant documents, CBL should
carefully consider following matters:

 At present CBL perform business activities through 86 of its branches but they
should open more branches in order to reach to more customers.
 Account opening procedure is too much critical but it should be easier otherwise
people will reluctant to open an account with CBL.
 Finally, heavy marketing and promotional campaign should be conducted to
popularize the retail banking activities.
 Bank should be fast in cash payment, and to clear a cheque.
 Still a number of customers are dissatisfied with charges and fees that is why bank
should consider it seriously.
 Customer service should be more smart and fast.
 Card division should be more committed to deliver product on time.
 Should have 24 hour customer service facility
 ATM service of the bank is completely dissatisfactory that is why they should
improve ATM service.
 City Bank customers have access to the vast ATM network of DBBL and Q-cash
booths but transaction charge is too high that may be the vital cause to boost
displeasure among customers.
 City Bank Ltd. need to increase own ATM booth all over the country.

47
5.3 Conclusion:
As an organization, City Bank has earned the reputation of top banking operation in
Bangladesh. The organization is much more structured compared to any other bank operating
local or foreign in Bangladesh. It is relentless in pursuit of business innovation and
improvement. It has a reputation as a partner of consumer growth.

With a bulk of qualified and experienced human resource, City Bank can exploit any
opportunity in the banking sector. It is pioneer in introducing many new products like
American Express Credit Card, Special bank Account and services in the banking sector of
our country.

Accordingly City Bank has started its journey in Retail Banking. Understanding
customer's savings trend and market demand the bank launched four new deposit products
and one DPS product in the banking sector. City Bank Ltd. has already set up a Retail
Finance Center, centralized retail credit and collection management unit, to amass retail loans
for individuals.

During internship period I have attempted to enrich my knowledge as much as possible

that would be beneficial to develop my carrier positively.

Though all departments & sections are covered in the internship program, it is not possible
to go to the depth or each activities of division because of fear of disclosure & time
limitation. So, objective of this internship program did not fulfill with satisfaction. However,
highest effort has been given to attain the objectives during the internship program and
have gathered vast knowledge during precise time period.

48
 Reference

 Anthony Robert N. (2000), Management Control System, Tenth Edition, New Delhi,
Tata McGraw-Hill.
 Faruki, K. & Saima, K. (2006) “Higher Secondary Banking & Insurance” (Correction
Edition), Amin new offset press. Banglabazar / Dhaka.
 Rose Peter S. (2005), “Commercial Bank Management” Fifth Edition, New York,
McGraw-Hill/Irwin.
 Kotler , Philip (2000),Marketing Management, Twelve Edition

49