A Comparative Analysis On Credit Card: Fees, Charges, Documentation and Customer Satisfaction of The City Bank Ltd.

CHAPTER 1
INTRODUCTION TO THE REPORT
There are a number of issuers that have already strengthened their positions in the
Credit Card Market in Bangladesh. City Bank Ltd. (CBL), as one of the country’s
leading bank in the backdrop of the growing demand and positive response in the
market and considering the potentiality to enter into Credit Card Business. In this
attempt, a comparative analysis on the existing Credit Card in terms of fees, charges
documentation and customer satisfaction will be a guiding light to identify the
prospects for the Bank.
1.1 ORIGIN OF THE STUDY
This research paper has been prepared as a part of the Internship Program of Bachelor
of Business Administration of Patuakhali Science And Technology University. The
report titled: A Comparative Analysis on Credit Card: Fees, Charges, Documentation
and Customer satisfaction of The City Bank Ltd. is a out come of three months’ long
Internship Program at The City Bank Ltd. The report topic was approved by the faculty
supervisor to satisfy the organizational requirements and fulfillment of the internship
program. This report has been prepared under both of their direct supervision.
1.2 OBJECTIVES OF THE STUDY
The broad objective of the study is to draw an overall view of the credit card market
and then identify the prospects of CBL. The specific objectives of the study are:
 To make an overview on the retail banking activities of The City Bank Limited
 To discover the preferred attributes and satisfaction level of the clients of CBL
to choose credit card.
 To analyze the services offering and charges of CBL regarding Credit cards
comparing with other banks.
A Comparative Analysis on Credit Card: Fees, Charges, Documentation and Customer

satisfaction of The City Bank Ltd. Page 1 of 54
 To identify the weakness and problems of the Credit card service offering of To
suggest necessary measures to improve the service quality of the Branch and the
CBL as a whole.
1.3 SIGNIFICANCE OF THE STUDY
The report titled: A Comparative Analysis on Credit Card: Fees, charges,

documentation and customer satisfaction of The City Bank Ltd. is prepared as a
requirement of the three months long internship program at The City Bank Limited.
Entering into a new line of business requires careful research and analysis on the
market and competitors’ strategies, strengths, weaknesses etc. Under this circumstance
a comparative analysis on the existing Credit Card Market would be very helpful for
the bank to accumulate various data and information regarding the product/service
offerings, customer bases, customers’ satisfaction level etc and in the process help to
explore opportunities and set strategies etc. It would be a huge boost for me to get
acquainted with the credit card business. So this study is very significant for both the
bank and me.
1.4 EXPECTED FINDINGS OF THE STUDY
Prior to all research works, there are some expected results, which are hypothesized for
the evaluation of the study. The expected findings of the study were:
 To analyze the services offering and charges of CBL regarding Credit cards
comparing with other banks. in the process of card delivery times, interest rate,
merchant pricing, different fees & charges
 Customers’ credit card selecting criteria, attitude of keeping various cards,
their wants, needs that can be overcome by CBL.
 CBL’s sources of areas of improvement in the whole process of credit card
business.
 Cardholders’ personal background regarding their age, income, occupation
and education to evaluate their card usage pattern, habits, and other features.
 To identify the weakness and problems of the Credit card service offering of
CBL (Dhaka Chamber Branch)

1.5 METHODOLOGY OF THE STUDY
The whole system of data collection and analysis included the following procedures:
1.5.1 Sources of data
Both primary and secondary sources of data have been used to gather the necessary
information for the analyses of the study. Primary data sources are the cardholders and
card offering organizations. The secondary data sources are the organization booklets
of charges and fees, application forms, credit card agreements of the card offering
organizations.
1.5.2 Sampling Technique Used
a) Population:
There are two different finite population involved in the study. They are
i) issuers
ii) cardholders
Of the four following banks:
1. The City Bank Ltd.(CBL)
2. Bank Asia Ltd. (BAL)
3. Dutch Bangla Bank Ltd. (DBBL)
4. Eastern Bank Ltd. (EBL)
b) Sampling Design and Sample Size:
Currently 9 banks are providing credit card facility. Among these four issuers were
selected for the interview. But, as the population size of cardholders is large, it was
difficult to determine a representative sample size. So, a purposive quota sampling was
used for the cardholders. The total sample size of cardholders that were interviewed
was 122. The Cardholders were selected on a convenient basis for the face-to-face
personal interview as well as the telephone interview.

Issuers Sample Size Percentage
CBL 84 69
BAL 15 13
DBBL 12 10
EBL 10 8
Total 122 100
1.5.3 Data Administering Method
The cardholders and the issuers were personally interviewed. Due to some
inconvenience and also to avoid wastage of time, some respondents were also
interviewed over the telephone by making them understand the technical terms. Two
questionnaires were developed to collect all the data and information.
1.5.4 Techniques of Data Analysis
Quantitative approaches like frequency distribution, cumulative percentage

measurement have been used for analyzing the collected data. Some analytical tools are
also used for analyzing marketing research. For example, to determine the relative
position of various card issuers on a single attribute, Cumulative Point Average (CPA)
scale has been used. The formulas for these tools are described as under
∑W
N CPA of a factor =
Here, W = Total weight for the factor on a scale

= Frequency of the factor (f) x Weight assigned to the scale (w)
N = Number of total respondents
Finally, to give the analyzed data a structural figure and express them in a constructive
manner, some standard computer software was used which are MS Word 2000 and MS
Excel 2000.
1.6 LIMITATIONS OF THE STUDY

There are some specific problems and limitations that were faced during the entire
process of preparing the report. Some of them are -
 Because of time and cost constraints, it was not possible to generate a
representative sample size and also to use simple random sampling procedure
 During the interview, there was some amount of non co-operation from a
section of the respondents, which were unavoidable. Hesitation and refusal of
the respondents caused one of the major limitations.
 The lack of experience of the researcher in the field may become another
limiting factor.
 Lack of time and resource constraint has also limited the scope to conduct the
survey smoothly and so as to prepare the report.
CHAPTER 2

ORGANIZATIONAL OVERVIEW
2.1 HISTORICAL BANKGROUND OF THE CITY BANK LIMITED
The City Bank Limited (CBL) is the first private sector bank in Bangladesh. The bank
has been operating since 1983 with an authorized capital of Tk.1.75 billon. The noble
intention behind starting this bank was to bring about qualitative changes in the sphere
of Banking and Financial Management. Today the City Bank serves its customers at
home and abroad with 83 branches spread over the country and about three hundred
oversea correspondences covering the entire major cities and business center of the
world. The services encompass wide diversified areas of trade, commerce and industry
which tailored to the specific need of customers and are distinguished by an exceptional
level of prompt and personal attention. Over the years the bank has expanded the
spectrums of its services. The extensive and ever growing domestic network provides
and carries various products and services to the doorsteps of millions.
The CBL was incorporated as a public limited company with limited liability on the
14th March, 1983 and its formal inauguration was on March 27, 1983 under company
act, 1913 in Bangladesh with the primary objective to carry on all kinds of banking
business. Functioning as a conventional Bank in the country since 1983, it has been
able to consolidate its position in the banking sector. The bank has been able to
establish a solid presence with the customers and general public through its improved
services, value addition in the economy and increasing shareholders value. The bank is
listed with Dhaka Stock Exchange and Chittagong Stock Exchange.
2.2 MISSION, VISSION AND OBJECTIVE OF CBL

2.2.1 Mission of CBL
• To contribute to the socioeconomic 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 Quality,
• To maximize bank’s profits by ensuring its steady growth,
• To maintain the high moral and ethical standards,
• To nurture an enabling environment where innovativeness and performance is
rewarded
2.2.2 Vision of CBL
“To be the leading bank in the country with best practices and highest social
commitment”
2.2.3 Objective
Despite extreme competition among banks operating in Bangladesh, both local and
international the City Bank Limited has made a remarkable progress practically in
every sphere of its functions. The activities of the CBL are very implicit and vast
comparing to that of other banks in the country today. The theme of the bank is “For
Relationship Banking”. The prime objectives of the CBL are to create a strong capital
base, to earn good profit and pay satisfactory dividend to honorable shareholders with
proper social commitments. To achieve the objectives the management is continuously
working for the improvement of bank’s assets quality by identifying potential
depositors and good borrowers. Because it believes “The line of excellence never
ends”. The strategic plans and business will be its strength in this very competitive
environment.
2.3 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
2.3.1 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 84 branches of CBL are divided
into five different regions, which are
1. Dhaka Division comprises 37 branches.
2. Chittagong Division, comprising 15 branches.
3. Comilla Division, comprising 05 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
five areas. So, the strategies of the five areas differ from one another; but they are
designed with distinctive local touch. Head office constantly monitors the progresses of
all the five areas. The bank is not interested in launching more branches. Currently
CBL is focusing in strengthening the existing branches.
2.3.2 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.
2.3.2.1 Retail Banking Strategy:
The 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”.
2.3.2.2 SME Banking Strategy:
Considering the potential growth and demand situation the City Bank Limited has
extended credit facilities to small and medium enterprises through SME Banking in the
year 2005 and 2006.A separate division has established in the Head Office with
collaboration of all branches to process and handle loans under SME for attaining a
respectable market share and successful operation of the scheme. The bank has
organized several training program for development of adequate human resources.
2.4 ORGANOGRAM OF CBL
CBL has moved from current geography to Business Matrix in the coming month. With
this end in view the Board of Directors in it’s meeting held on 29 th July 2007 has
approved an interim restructured organogram and reporting lines for introduction in the
bank. The restructured organogram and the reporting lines are shown in the next page
The management of the bank strongly believes to achieve desired goals through these
changes. The changes would also result in much more value addition to the employees
of the bank.
Shareholders
Executive Audit
Board of Directors Committee Committee Chief Advisor
Managing Directors
HEAD OFFICE
Deputy Managing
Company Secretary Audit & Inspection Division
Directors
Central Accounts Division
Credit Division
Marketing, Development &

General Banking Division
General Services Division
Human Resources Division
International Division
Information Technology
Division
Research & Planning

Division
Treasury & Money Market

Division
Board Decretariat & Share

Department
Cost Control Department
Law & Recovery

Department
Card Cell
Figure 1: Organizational structure of CBL
CHAPTER 3
FUNCTIONS AND BUSINESSES OF THE BANK
3.1 DESCRIPTION OF SERVICES OFFERED BY CBL
The services offered by CBL are discussed below
3.1.1 Services of CBL
The CBL concentrates the following categories of banking services-

• General banking,
• Retail banking
• Loans and Advances,
-SME (Small & Medium Enterprises)
-Corporate
• International Trade and Foreign Exchange,
-Export
-Import
-Remittance
• Online Banking Services,
• Debit Card and Duel Currency Credit Card Facilities.
3.1.2 Retail Banking
One of the most remarkable success stories of last 50 years’ Banking Industry globally
has been the conceptualization and innovative execution of banking with individual
customers, their friends and families. The industry has termed it as Retail Banking or
Personal Banking or Consumer Banking. The City Bank Ltd. recently has started its
journey in Retail Banking. More than 800 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 has been issued, SMS Banking has been offered, 3 new deposit
products have come, workers’ foreign remittance business has been launched, new
many billboards have come up and our communications in media has increased,
manifold in the endeavor to build a Retail Banking brand namely “City Retail
Happiness Counts”.
3.1.3 SME Banking:

Considering the potential growth and demand situation the City Bank Limited has
extended credit facilities to small and medium enterprises through SME Banking in the
year 2006 and 2007.A separate division has established in the Head Office with
collaboration of all branches to process and handle loans under SME for attaining a
respectable market share and successful operation of the scheme. The bank has
organized several training program for development of adequate human resources.
3.1.4 Corporate and investment Banking
As part of its commitment to provide global quality service, the City Bank Ltd, one of
the largest local Banks, has launched its Corporate & Investment Banking Division
recently. This shift, from branch banking model to business driven matrix, is the first
step of the bank’s plan to revitalize its way of doing business in 2009. The C&I
Division will comprise of a number of relationship teams centered in Dhaka and
Chittagong to provide who will act as one stop contact point for the customers of the
bank. This model has been successfully globally to provide better service and create
increased customer satisfaction. The relationship teams have been staffed mainly
through internal quality resources. The C&I relationship teams have already taken over
the existing large accounts and servicing the customers to their satisfaction. The C&I
has also booked blue-chip customers like Grameen Phone, Epylion group, Banglalink,
Ericsson, Meghna Group, Esquire Group, Nandan etc. recently. Total new booking in
last few months is more than BDT 3,000 million. The C&I Division will also have
product teams i.e. structured finance, Islamic finance, leasing, cash management who
will meet the specialized product needs of the corporate customers. The time ahead is
going to be very challenging for C&I. The major challenges shall be to increase the
quality of the portfolio keeping in mind the business targets with timely formation and
support from other departments i.e. centralized credit administration, operations.
3.1.5 Duel Currency Credit Card
Today’s customer wants services and information to be provided at all times and
places. This has become possible by ATMs and POS terminals and helped banks in
achieving “Anytime, Anywhere Banking”. Therefore there is a need for an automated
system that will connect the branches through online to provide better services to the
customers. The most modern technology based bank product for making hassle free
financial transactions and drawing of cash money all over the world is given by Credit
Card. The City Bank Ltd is the first among domestic banks to introduce a unique dual
currency CITYCARD under the logo of VISA International in Bangladesh. After
obtaining principal membership of VISA on 19th February,2003 the bank is pleasing its
commitment to be a leader as card issuer in the arena. Tremendous responses are there
from the market for this plastic money. Up to March, 2010 the number of CITYCARD
is 20,215.
3.1.6 Computerization and Online Service
With computerization the bank had gone another step ahead towards providing
pragmatic, safe and prompt banking services. All 83 branches including Islamic
Banking Branch are brought under computerization net. Bank has implemented online
real time banking through an agreement with Info sys Technologies Limited for
supply of world reputed banking software “FINACLE”. Within March, 2010 real time
banking facilities have been introduced in 37 branches of the CBL. Under this system,
client will be able to do the following type of transactions:
o Easy to withdraw or deposit from any online branch
o Fund transfer with one click, no need TT/DD.
o Customer can easily tell which payments have cleared
3.1.7 Islamic Banking
The City Bank Limited started its Islamic Banking operation by opening its first
Islamic Banking Branch at 9/H, Motijheel, Dhaka. The salient features of Islamic
Banking are as follows:
 To conduct all its activities as per Islamic Shariah.
 To conduct its monetary matters free of interest.
 To establish banker-customer relationship on the basis of partnership.
 To follow Islamic principle in all its investment port-folio.
 To develop living standard of the poor incoming group.
 To render excellent services to the clients cordially.
 To conduct welfare related activities to the people.
3.1.8 SWIFT Banking (SINCE 2000):

The City Bank Limited is one of the first few Bangladeshi Banks who has become
member of SWIFT (Society for Worldwide Inter-bank Financial Telecommunication)
in 1983. SWIFT is members owned co-operative, which provides a fast and accurate
communication network for financial transactions such as Letters of Credit, Fund
transfer etc. By becoming a member of SWIFT, the bank has opened up possibilities
for uninterrupted connectivity with over 5,700 user institutions in 150 countries around
the world.
3.1.9 Corporate Governance
The bank recognizes the importance of Corporate Governance and is committed to

maintain highest standard. A team of experienced professionals maintains the following
committees to run the Bank efficiently:
• Management Committee
• Administrative and Disciplinary Action Committee
• Technical and Audit Committee
• Credit committee
• Procurement and purchase Committee
• Asset and liability Committee
3.1.10 Training Program
The City Bank Ltd. has launched a huge training program for its staff as part of its
restructuring plan. So far, 774 staffs have received training on Customer Service and
face to Face Sales; 65 staff received training on Departmental operating Instructions
and 268 staff received training on Orientation to Credit. Apart from these regular
training are going on with BIBM, BIM, CRISL etc. City Bank Management gives top
priority to its peoples learning and development issues. That’s why the current training
project of City Bank is given a name “Learning & Development making the winning
Moves”.
3.2 FUNCTIONAL DIVISIONS OF CBL

The Bank accomplishes its functions through different functional divisions/
departments. The divisions/departments along with their major functions are listed
below:
3.2.1 Financial Division

Financial planning, budget prepartion and monitoring

Payment of salary
Controlling inter-branch transaction
Disbursement of bills
Preparation of financial reports and annual reports
Preparation/Review of returns and statements
Maintenance of Provident Fund, Gratuity, Superannuation Fund
Reconcilliation
3.2.2 Credit and risk management
Loan administration
Loan disbursement
Project evaluation
Processing and approving credit proposals of the branches
Documentation, CIB (Credit InformationBureau) report etc
Arranging different credit facilities
Providing related statements to the Bangladesh Bank and other departments
3.2.3 Human Resource Division (HRD)
Recruiting
Training and development
Compensation, employee benefit, leave and service rules program and upgration
Placement and performance appraisal of employees
Preparing related reports
Reporting to the Executive Committee/ Board on related matters
Promotional campaign and press release

3.2.4 Information Technology (IT) Department
Software development
Network management and expansion
Software and Hardware management
 Member banks reconcilliation
Data entry and processing
Procurement of hardware and maintenance
3.2.5 Branches Control & Inspection Division
Controlling different functions of the branches and serch for location for expansion
Conducting internal audit and inspection both regularly and suddenly
Ensuring compliance with Bangladesh Bank (BB), monitoring BB’s inspection and
external audit reports
3.2.6 Retail Division
ATM card, Credit and system operation and maintenance

SWIFT operation
Credit Card Operation (Proposed)
Customer and vendor relationship

3.3 SWOT Analysis of The City Bank Limited
Every organization is composed of some internal strengths and weaknesses and also
has some external opportunities and threats in its whole life cycle. This following will
briefly introduce the customer to The City Bank Limited’s internal strengths and
weaknesses, and external opportunities and threats.
3.3 .1 Strengths
• Stable source of fund

• Strong Liquidity position
• Concentrated market
• Wide network of branches
• Experienced top management
• Diversified product line
3.3 .2 Weaknesses
•
Deposit is lower than advance.
•
Officer has limited experience and training
•
Small market share in Banking-business
•
Long-term credit is not sufficient
•
Relatively high overhead expanse
•
Problem in Delivery.
3.3 .3 Opportunities
•
Favorable regularity environment
•
Private sector development
•
Credit card business
•
SME and Agro based industry loan
•
Can increase the advertising of the Bank
3.3 .4 Threats
•
Deposit as well as quality assets
•
Market pressure for lowering the interest rate
•
Shrinkage in export, import and guarantee
•
Poor business due to economic slump and war
•
Frequency in Currency Devaluation
•
Emergence of Competitors
•
Govt. pressures to reduce interest rate
3.4 PERFORMANCE OF CBL FOR LAST TWO YEARS:

The City Bank Ltd., since its incorporation, continued to maintain its stable position in
the industry. The bank has been able to show a strong performance in business and
financial accounts. With better customer service, fulfillment of commitments to
corporate social responsibilities, ensuring sound corporate governance Bank
consolidated a solid presence with the customers and general public and in the industry.
During the last few years, significant improvement was evident in deposit mobilization,
advance portfolio augmentation and recovery of non-performing loan. Foreign trade, in
terms of import, export and inward foreign remittance have also shown noteworthy
growth in the year 2008. Last few years performances are described below-

******Sample*****
Figures in million

Year Under Year Under
Sl. Particulars Review Review
( 2008) ( 2007)
1 Paid-up capital 1,366.20 1,188.00
2 Total capital 3,953.47 3,156.25
3 Capital surplus / (deficit) 361.58 652.55
4 Total assets 57,114.58 48,755.40
5 Total deposits 45,034.33 40,539.63
6 Total loans and advances / investments 34,420.94 26,788.47
7 Total contingent liabilities and commitments 10,920.87 8,277.64
8 Credit deposit ratio 76.43% 66.08%
Percentage of classified loans / investments against total loans and

9 6.30% 6.24%
advances / investments
10 Profit after tax and provision 398.11 343.46
11 Amount of classified loans / investments during current year 2,169.81 1,671.83
12 Provisions kept against classified loans / investments 779.80 462.78
13 Provision surplus/(deficit) against classified loans / investments 0.07 40.00
14 Cost of fund 6.90% 7.55%
15 Interest earning assets 49,196.70 42,757.28
16 Non-interest earning assets 7,917.88 5,998.12
17 Return on investment (ROI) 14.13% 12.33%
18 Return on assets (ROA) 0.75% 0.71%
19 Income from investment 1,171.67 860.27
20 Earnings per share (Taka) 29.14 25.14
21 Net income per share (Taka) 29.14 25.14
22 Price earning ratio (times) 15.49 28.85
3.4.1 Earning Per Share

Earnings stood at Tk. 29.14 per share in the year 2008 while it was Tk. 25.14 in the
preceding year
.
3.4.2 Deposit
Banks deposit rise by 11.087 percent in 2008. Total deposit stood at Tk. 45,034.33
million with an increase of Tk. 4, 49,470 million. The deposit position in the year 2007
was Tk. 40,539.63 million.

3.4.3 Loans Advances
The portfolio of loans and advances at end of the year 2008 stood at Tk. 34,420.94
million with an increase of Tk. 7,63,247 million rise was 28.49 percent. The
outstanding amount at the same period of previous year was Tk. 26,788.47 million.
3.4.4 Foreign Remittance
The City Bank Ltd. Made new arrangements and fruitful strategies with money
exchange company in United Kingdom, Middle East and United States. In 2004 they
earn Tk. 2466 million but in 2005 there is dramatically increase Tk. 4158. Total amount
of foreign remittance through exchange houses and banks was BDT 8473 million. But
due to the economic slowdown in the year 2007 this bank earns Tk. 4932 million. And
lastly, foreign remittance in 2008 increase rapidly and it was Tk. 8579 million.
Chart 1: Foreign Remittance
3.4.5 Investment Operation
Bank was involved in utilization of surplus funds through investment in treasury bills,
bonds, government approved securities, debentures shares and money at call and short
notice. Investment in government securities like treasury bills and treasury bonds was
Tk. 2945 million and Tk. 2707 million respectively. Increases in these heads were Tk.
642 million and Tk. 2036 million respectively. Investment in private sector share,
debenture, and bond increased by Tk. 86 million and stood at Tk. 531 million as at 31 st
December, 2008. Growth under this head was 19 percent.
3.4.6 Capital Market Services
In an effort to promote industrialization and economic development of Bangladesh,

City Bank considered it appropriate to seize this opportunity by playing its due role in
capital market related activities. Accordingly the bank obtained Membership of Dhaka
Stock Exchange (DSE) for operating a brokerage house. To provide infrastructural
facilities for Local & Nonresident Bangladeshi (NRB) Investors through this brokerage
house and all other capital market related activities, a new Division namely ‘Capital
Market Services Division’ has been created and a Consultant with proper background
has been appointed.
3.5 FUTURE DIRECTIONS OF CBL
Due to good poet flood harvest recovery of agricultural output, stable manufacturing
growth supported by strong export demand of knit garments, robust service sector
growth and steady flows of inward remittances. Due to high international prices of
many other commodities like oil, gold etc. interest rate is on rising trend in global
economy with associate increase in the inflationary expectation. Bangladesh Bank is
alert to contain the inflationary pressure and tightened monetary measures are expected
to continue for facilitating smooth credit flow to productive pursuits only for targeted
output growth. The rate of interest of the country has already shown a changing trend in
both deposit and advance due to the tightened monetary measurers.
CBL is well positioned to meet the challenges of 2010 and will continue to strive to
innovate and capture for modest growth, value creation and quality improvement. The
Bank will focus on its existing customers and potential customers also. This strategy is
supported by wide spectrum of product and services and level of customer service
delivery. The Bank will continue to harness the potential of retail banking, SMS
banking and remittance market. How ever, there are continued pressure on interest
margins, commission and fee earnings, exchange income and increased provision
requirement for retail. In its pursuit for growth, CBL will always adhere to good

corporate governance and best practices and sound risk management policies and strict
credit evaluation procedure.
CHAPTER 4
AN INTRODUCTION TO CBL CREDIT CARD
4.1 WHAT IS A CREDIT CARD?
Credit Card is an electronic based plastic card bearing an account number assigned to a
cardholder with a credit limit that can be used to purchase goods and pay for services
with a credit facility and without cash/currency note transactions from the appointed
merchants of issuer of the card and to obtain cash disbursements on credit, for which
the card holder is subsequently billed by an issuer for repayment of credit extended at
once or on an installment basis.
4.2 OVERVIEW OF THE CITY BANK CREDIT CARD
The City Bank Limited (CBL) launched Visa Credit Card business back in April 14,
2004. Presently it has only 20,215 cards in market whereas other contemporary
competitors have grabbed a remarkable market share. Lack of dynamic product
features, proper marketing effort, structured credit process, supervision of delinquency
etc. is behind this miserable situation. Hence, The City Bank Limited is planning to re-
launch its City Card shortly with all dynamic features, proper marketing strategy,
smooth distribution channels (Direct Sales Team), structured collection team and above
all with a best Credit Process for Cards Division.
4.2.1 Target Market
The name list of the target Market includes:
 Salaried
 Self Employed (Professionals & Businessman)
 FCY A/C holders (Dual Currency Card)
 ERQ account holders (Dual Currency)
 Housewives/Students (for Secured Card/Supplementary Card)
 Other legitimate income earners like land lord and land lady
4.2.2 Non Target Customer
Followings are the non target segment of CBL Credit Card
 Journalist of reasonably lower level & non reputed publications
 Lawyers
 Politicians & Individuals having politically affinity
 Travel agents and C & F agents of lower level
 Defense officials below Major level
 Employees of un reputed sole proprietorship company
 Employees of Negative listed companies
 Individuals who are enlisted in CBL/other banks’ negative list
4.2.3 Eligibility of Customers
 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) for silver card Tk 12,000
 Minimum Gross Monthly Income(GMI) for 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.
4.2.4 Income & Identification Document
 Photograph and business card
 Photo ID/ Driving license/ Copy of Passport for international card

 Bank Statement for last 6 months (3 months for agreed corporate deals)
 TIN related document
 Letter of Introduction (LOI) from applicant’s employer or salary certificate or pay

slip along with major information like joining date, job status and salary break up
 For business person copy of Trade license/Memorandum of Articles/Memorandum

of Association.
Credit Card Application flow Chart
Customer
Tele sales/ Corporate

Direct sales Branch/Walk in/ CSA
Credit /RFC (MIS)
CPV Agents
Credit Analyst
Approved /Declined
or Send Back to
Source
Manager/Senior Manager /
Head of Retail Finance
Approved Declined
Reviewed By Archive of all

Sales/Branch files
Reviewed By
Credit
Card Ops CS of
Check and Card Branch/Cards/
Production Courier

Figure 2: Credit Card application flow chart
CHAPTER 5
ANALYSIS AND FINDINGS OF THE STUDY

There are two major parts of the analysis, which are
 Issuers
 Cardholders
5.1 DEMOGRAPHIC PROFILE OF THE CREDIT CARDHOLDERS
5.1.1 Sex and Marital Status
Most of the respondents were male and the male female ratio was 83:17%; and, 65% of
them were married and the rest 35% were single (Table 1).
Marital Status
Sex Single Married Total
f % f % f %
Male 39 32 62 51 101 83
Female 4 3 17 14 21 17
Total 43 35 79 65 122 100
Table 1: Distribution of sex and marital status of the cardholders
5.1.2 Age and Income
The group with the maximum frequency was of age group of 26-35 belonging to the
income level of Tk.25000-39000 (Table 2).
Age Group
Income Level 25 or less 26-35 36-45 46-55 56 & above Total
f % f % f % f % f % f %
Tk 10000-24000 12 10 15 12 3 2 - - - - 30 25
Tk 25000-39000 - - 28 23 7 6 - - - - 35 29
Tk 40000-54000 - - 6 5 5 4 10 8 2 2 23 19
Tk 55000-69000 - - - - 10 8 6 5 3 2 19 16
Tk 70000-84000 - - - - 2 2 4 3 2 2 8 7
Tk 85000 & above - - - - 1 1 3 2 3 2 7 6
Total 12 10 49 40 28 23 23 19 10 8 122 100
Table 2: Distribution of income level and age group of the cardholders

5.1.3 Education and Occupation
The highest cell in this cross table is the banker having MBA degree under their belt
(Table 3).
Education
Occupation Graduate BBA Post Graduate MBA Others Total
f % f % f % f % f % f %
Businessman 4 3 - - 5 4 2 2 - - 11 9
Banker 9 7 9 7 16 13 12 10 - - 46 38
Service Holder (Pvt.) 3 2 11 9 13 11 10 8 2 2 39 32
Professional 5 4 - 6 5 3 2 - - 14 11
Teacher - - - - 2 2 4 3 - - 6 5
Others - - - - 3 2 3 2 - - 6 5
Total 21 17 20 16 45 37 34 28 2 2 122 100
Table 3: Distribution of education and occupation of the cardholders
5.2 ISSUERS
This section includes market share analysis, merchant coverage, service offerings and pricing
/charges & fees of different cards of different issuers.
5.2.1 Service Offerings
All the service offerings of different issuers are listed at the following page in Table 4. The
following are the highlights of them.
Facility CBL BAL DBBL EBL

Avg. Card Processing
5 Days 5 Days 5 Days 2 Days
& Delivery Time
Avg. Fund Disbursement
2 Day 2 Days 3 Days 3 Days
Time
Grace Period 50 Days 45 Days 45 Days 45 Days
Payment Due Date From
20 Days 15 Days 15 Days 15 Days
Statement Date
Cash Withdrawal/ Available (50% of Available Available Available
Advance Facility credit limit) (40%) (50%) (50%)
ATM Facility 28 16 234 37
Table 4: Service offerings/facilities of different issuers’ cards

I. Card Processing & Delivery Time
The average time for processing the card and delivery is 5 Days for CBL. EBL takes only 2
days for processing the card and delivery.
II. Grace Period/Interest Free Period
CBL is enjoying a competitive edge by providing the maximum grace period of 50 days,
comparing to 45 days provided by the other issuers.
III. Payment Due Date From Statement Date
CBL is also the provider of the maximum time in the market for payment due date from
statement date with 20 days comparing to the same of 15 days provided by the other issuers.
IV. Cash Withdrawal
All the issuers provide cash advance facility of 50% of the credit limit, except Bank Asia ,
which provides only 40% of the same.
V. ATM Facility
Cash advance facility has a close relation with ATM (Automated Teller Machine) facility for
credit card, which is very convenient for the cardholders to draw cash from ATM rather than
going to the bank. Here DBBL is in a leading position with 234 ATM booths all around the
country. Currently CBL has come to an agreement with DBBL to Share their ATM facility
VI. Fund Disbursement Time
The average time for the disbursement of fund (through cheque or pay order) to the merchants
is 2 day of CBL, 1-2 day(s) of BAL, and 3 days of DBBL and EBL. Being aware of the
importance of this matter, CBL is now trying to provide the fastest service in the market.

5.2.2 Charges & Fees & Attractive Features of Different Issuers
The schedule of different charges and fees of various cards of different issuers are
given in the next two pages in Table 5 (local) The focus of this study is primarily on the
local cardholders; so, the best offers in cases of all the local charges are listed below:
• The Lowest annual fee for Basic card local classic is Tk. 1000 (offered by CBL,
DBBL & EBL) and local gold is Tk 1500 (offered by DBBL).
• The Lowest annual fee for supplementary card local gold is Tk. 750 (offered by
CBL) and local gold is Tk 500 (offered by CBL).
• No renewal charge for Basic & Supplementary Card this feature is provided by
EBL
• Late payment fee for local gold is Tk. 300 (offered by CBL) and local gold is
Tk 200 (offered by CBL& DBBL) which is low comparing to other banks.
• The lowest return cheque fee is Tk. 100 both for local gold and classic offered
by CBL.
• The sales slip retrieval fee is Tk. 100 both for local gold and classic offered by
CBL
• The monthly interest rate of NBL is lowest with 2% comparing to 3% of
others.

Table 5: Schedule of charges of different issuers’ local cards
The City Bank
Ltd Bank Asia DBBL Eastern Bank
Classi Classi
Fees & Charges Gold c Gold c Gold Classic Gold Classic
Annual Fee Basic Card 2000 1000 2000 1000 1500 1000 2500 1300
Annual Fee
Supplementary Card 750 500 1500 1000 2000 1000 2500 1300
Renewal Fee Basic Card 2000 1000 2000 1000 1900 1000 0* 0*
Renewal Fee
Supplementary Card 750 500 1000 500 900 600 0* 0*
Replacement Card Fee 400 200 500 500 700 500 300 150
Late Payment Penalty 300 200 500 250 350 200 500 300
EOL Charge 500 200 500 300 400 300 nil nil
Pin Re-issue Fee 500 500 500 500 200 200 300 150
2% 2% or 2% or 2% or
or 2% or TK TK TK 2% or 3% or 3% or
Cash Advance Fee TK75 TK75 150 150 100 TK 100 TK100 TK100
Return Cheque Fee 100 100 350 250 350 250 200 200
Statement Retrieval Fee 50 50 50 50 50 50 50 50
Sales Slip Retrieval Fee 100 100 250 200 250 200 200 200
Out Station Cheque
Collection Fee 100 100 100 100 100 100 250 250
Cash Advance Limit 50% 50% 50% 50% 50% 50% 50% 50%
2% 2% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
Cash Advance Interest P/M P/M P/M P/M P/M P/M P/M P/M
2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
Debit Interest P/M P/M P/M P/M P/M P/M P/M P/M
Advance Income Tax NIL NIL 3% 3% - - - -
5% or 5% or
Minimum Payment 5% 5% 5% 5% 5% 5% 500 H 500 H
*No renewal charge
Spouse Card for Basic
Special Features NIL Nil
Free & Supplementary
Card
5.3 CARDHOLDERS’ RESPONSES

This section focuses on analyzing cardholders’ responses regarding their, card usage
pattern, credit card transaction habit, purposes of card transaction and satisfaction
level of the services of a particular banks etc.
5.3.1 Usage Pattern
I. Transaction pattern
The highest number of respondents, 41 – comprising 33.6% of them, said that they use
their cards once a week (Table 6). The second highest 28.7% use their cards once in
every 15 days. And, it was found that almost 70% of the respondents use their credit
cards once in every 15 days or more frequently.
Response f % Cumulative %
More than once a week 9 7.4 7.4
Once a week 41 33.6 41.0
Once in every 15 days 35 28.7 69.7
Once a month 23 18.9 88.5
Once in every 2 months 14 11.5 100.0
Total 122 100.0
Table 6: Frequency of credit card transaction by the cardholders
40
30
20
10 …
0
More than Once a week Once in every Once a month Once in every 2
once a week 15 days months
Chart1: Frequencyof credit cardtransaction

bythe cardholders

II. Monthly Average Credit Card Transaction Amount
On an average, 36% of the respondents spend less than Tk 5000 but not less than Tk
2000 monthly (Table 7). Another 22% respondents spend more than Tk 5000 but less
than Tk 10000. And, a little more than 50% of the respondents spend Tk 5000 or more
(Figure 2.10).
Amount f % Cumulative %
Less than Tk 2000 16 13.1 100.0
Tk 2000 – 4999 44 36.1 86.9
Tk 5000 – 9999 27 22.1 50.8
Tk 10000 – 19999 22 18.0 28.7
Tk 20000 or more 13 10.7 10.7
Total 122 100
Table 7: Average monthly credit card transaction amount of the cardholders

Chart 2: Average monthly credit card transaction amount of the
cardholders
III. Usage of multiple cards
An astonishing 67.2% of the respondents use multiple (more than one) credit cards as it
is shown in Table 2.5. The other 32.8% use single card and significantly to say that
most of them are relatively new users of credit cards. The most important reason for
that is to get the chance of buying from the maximum number of merchants (Figure 8
So, it would be a competitive advantage for CBL if it appoints new merchants, who are
not the merchants of other issuers.
Type f %
Single card user 40 32.8
Multiple card user 82 67.2
Total 122 100
Table 8: Cardholders according to single/multiple card user
Chart 3: Cardholders according to single/multiple card user
5.3.2 Specific Satisfaction Level

This section seeks to rank different issuers according to CPA on specific issues like
cash withdrawal, discount, customer service, merchant coverage, grace period and fees
etc.
I. Cash Withdrawal Facility
The cash withdrawal facility of BAL is 10% of available credit limit, so their
cardholders are not much satisfied with that as it is obvious from Table 9. CBL is
sharing a strong position with DBBL
Very Satisfied Indifferent Very Dis-

Dissatisfied (2) Total # of
Issuer Satisfied (5) (4) (3) satisfied (1) CPA
w f w Points res
f w f w f f w
CBL 29 145 47 188 8 24 357 84 4.25
DBBL 2 10 7 28 3 9 47 12 3.92
EBL 7 28 3 9 37 10 3.70
BAL 1 5 5 20 5 15 3 6 1 1 47 15 3.13
Table 9: Satisfaction level regarding cash withdrawal facility
II. Discount Facility
Regarding discount facility, none of the issuers is at a very comfortable position. So it

is an area where CBL can exploit in the credit card business by convincing merchants
to offer attractive discount facility to the cardholders. And to do so merchants should be
compensated or well backed up by the Bank.
Very Satisfied Indifferent Very Dis- # Of

Dissatisfied (2) Total
Issuer Satisfied (5) (4) (3) satisfied (1) Res. CPA
Points
f w f w f w f w f w
CBL 9 45 46 184 21 63 8 16 308 84 3.67
BAL 2 10 7 28 4 12 2 4 54 15 3.60
DBBL 1 5 5 20 4 12 2 4 41 12 3.42
EBL 5 20 3 9 2 4 33 10 3.30
Table 10: Satisfaction level regarding discount facility

III. Interest Charges & Fees
As it is very clear from the following table (Table 11) that none of the issuers’ position
in this regard is very good at all. So, CBL should focus its plan on this aspect. If the
Bank would be able to offer the same service with lesser than the present issuers, it will
be able to convince a lot of existing cardholders as well as prospective new
cardholders.
Very Satisfied Indifferent Dissatisfied Very Dis- # Of

Total
Issuer Satisfied (5) (4) (3) (2) satisfied (1) Res. CPA
w f w Points
f w f w f f w
DBBL 3 12 3 9 5 10 1 1 32 12 2.67
BAL 2 8 4 12 7 14 2 2 36 15 2.40
EBL 1 4 3 9 5 10 1 1 24 10 2.40
CBL 11 44 25 75 29 58 19 19 196 84 2.33
Table 11: Satisfaction level regarding interest charges & fees
IV. Grace Period
The grace period or interest free period for repayment that CBL is 50 days as compared
to 45 days of other issuers. The outcome of that difference becomes truly vivid in the
following table (Table 12), as only DBBL has a CPA above 4.0 and the same is around
3.0 of other issuers. So, if CBL could just follow DBBL’s strategy here it will be an
advantage for the bank at least against the other issuers.
Very Satisfied Indifferent Dissatisfied Very Dis- # Of

Total
Issuer Satisfied (5) (4) (3) (2) satisfied (1) Res. CPA
w f w Points
f w f w f f w
DBBL 4 20 6 24 2 6 50 12 4.17
CBL 33 132 28 84 14 28 9 9 253 84 3.01
EBL 5 20 2 6 1 2 1 1 29 10 2.90
BAL 3 12 5 15 6 12 1 1 40 15 2.67
Table 12: Satisfaction level regarding grace period
V. Customer Service
Although EBL is one of the earliest of issuers of credit card, the customer service of
EBL is not very good as it is depicted in the following table (Table 13). It could be a
determining factor for the slow growth rate in credit card business of that bank. So,
CBL should be concerned in this regard.

Dissatisfied (2) Total Res.
Issuer Satisfied (5) (4) (3) satisfied (1) CPA
w f w Points
f w f w f f w
CBL 18 90 36 180 30 90 360 84 4.29
BAL 2 10 6 24 7 21 55 15 3.67
DBBL 5 20 6 18 1 3 41 12 3.42
EBL 1 4 2 6 4 8 3 3 21 10 2.10
Table 13: Satisfaction level regarding customer services
VI. ATM facility
DBBL is in a leading position with 234 ATM booths all around the country. The
reflection of that can be seen in the following table where DBBL has a CPA above
4. .Currently CBL has come to an agreement with DBBL to Share their ATM facility.

w f w Points
f w f w f f w
DBBL 4 20 6 24 2 6 50 12 4.17
CBL 33 132 28 84 14 28 9 9 253 84 3.01
EBL 5 20 2 6 1 2 1 1 29 10 2.90
BAL 3 12 5 15 6 12 1 1 40 15 2.67
Table14: satisfaction regarding ATM facility
5.3.3 Overall Satisfaction Level
The highest satisfaction level of the cardholders regarding the overall service including
all aspects of credit card operation is of CBl, which secured 4.13 CPA (Cumulative
Point Average, see Appendix C) as shown in Table 15 and Figure 6. The second in this
category is DBBL with CPA of 4.08. The satisfaction level of the cardholders of BAL
is below satisfied level (4), with 3.80 CPA and that of EBL is very low at 3.2 CPA.

w f Points
f w f w F w f
CBL 17 85 61 244 6 18 --- 347 84 4.13
BAL 2 10 11 44 1 3 1 2 --- 57 15 3.80
DBBL 2 10 9 36 1 3 --- 49 12 4.08
EBL 6 24 2 6 2 4 --- 32 10 3.2
Table 15: Overall satisfaction level of the cardholders of different issuers
Chart 4: Overall satisfaction level (CPA) of the cardholders of different issuers
Chapter 6
Logistic and Support Division
6.0.0 Purchase and Procurement Policy

To bring uniformity & transparency in the purchase & procurement process of The City
Bank Limited, the Board advised to formulate the purchase policy. Considerations of
Economy, Efficiency & Quality were the basis underlying this policy. The salient
features of the policy are: Common Services Division (presently named as Logistic and
Support Division) to be responsible for all types of purchase & procurement of the
bank.
a. Purchase beyond Tk.3.00 (three) lacks is made through publication of the tender
in at least one widely circulated national daily. All purchase should be made at
competitive rate.( There fore more participation is appreciated)
b. In line with the guidelines of BRPD circular No.16 of 24 July 2003 purchase of
vehicle be made as and when required through Board’s approval and renovation
and decoration with the approval of Board/EC
c. In all such cases guidelines of above BRPD circular are meticulously followed.
A) The policy is divided into four categories as follows:
1. Renovation & Decoration Policy.

2. Vehicles purchase policy.
3. Printing policy.
4. General (All types of purchase excluding serial No. 1, 2, & 3).
(B) General rules:
• All units of the bank to send requisition to Logistic and Support (L&SD)
.The Division to start the process of purchase after assessing the needs as
per defined criteria.
• A purchase & procurement Committee (PPC) to be formed with not less
than 4 members under MD’s discretion. This committee will supervise the
procurement process for all purchases above Tk.25,000/-. As for purchase
up to Tk.25,000/- approval will be given as per financial delegation
approved by the Board.
• The whole process of purchase (from requisition to delivery) should be
completed within a reasonable period of time. Logistic and Support
Division to ensure prompt response & delivery of the requisitioned items
subject to external factors.
6.1 Renovation/Decoration work Policy:
6.1.01 For preparing lay-out reputed Designers/Decorators to be invited. For preparing

lay- out plan and supervision of the work order maximum 4%* of work order
value may be paid as remuneration fee.
* (1.08 % within Dhaka and 1.50 % Outside Dhaka are currently applied)
6.1.02 Tender schedule to be issued to the established companies/firms which has

work experience with The City Bank Limited or with the other reputed
organizations. Tender may be accepted subject to participation of minimum 3
bidders. (Can we go for open tender in the newspapers instead..?)
6.1.03 Tender to be opened & signed by members of PPC in presence of the bidders.
6.1.04 Note to be placed before the management for approval by preparing

comparative statement of quotations with the recommendation of purchase &
procurement committee. As per decision of the competent authority, work order
may be issued.
6.1.05 Apart from price, the committee to consider supplier’s previous experience &
goodwill for awarding work order.
6.1.06 At the time of final payment, 10% to be retained from the work order amount
as security money for 3(three) months.
6.1.07 The work order to specify completion time and penalty charge (in case of
failure to complete the work within the stipulated time).
6.2 Vehicle Purchase Policy:

6.2.01 Vehicle may be allotted to branches on the basis of a defined criteria and
management discretion.
6.2.02 Vehicles may be purchased for a new employee or promoted employee as per
service rule. In addition, vehicles may also be purchased as a replacement for
disposed off vehicles as per management decision.
6.2.03 Straight line basis to be followed for depreciation & 20% to be charged on
purchase value. Book value to be Tk.1/- after 5(five) years. Decision for sale of
Vehicles may be taken where expenditure for repairs is on the high side.
6.2.04 Competent authorities to take decision regarding the type & numbers of
vehicles to be purchased after taking into account the need, allotment criteria,
availability as well as brand, model, year of manufacture, capacity i.e. CC etc.
(Can we specify some brands considering the resale value otherwise it may incur
huge loss at the time of dispose off these vehicles?)
6.2.05 Spare parts availability, maintenance, cost of repairing, re-sale value of
vehicle & cost of fuel consumption to be due consideration.
6.2.06 Minimum 3 quotations to be collected from reputed supplier/firms, competent

authority to negotiate for a better price or terms & condition while implementing
the decision of the Board/Executive Committee/Management based on
competitive quotations & lowest price.
(Lowest price also should be considered along with its resale value and
availability of spare parts)
6.2.07 Satisfactory pre-delivery inspection report and performance certificate from a
reputed firm to be a pre-condition for taking delivery of vehicles.
6.3 Printing Policy:
6.3.01 Printing to be undertaken for new items and for replenishing stock of existing
items. Process for printing to be initiated much before depletion of current stock.

6.3.02 Sealed quotations to be invited subject to approval of sample items by the Head
Office Printing Advisory Committee (PAC) as is functioning.
6.3.03 Sealed quotations to be opened in presence of PAC and bidders (if any), at the
prescribed schedule for on ward submission to PPC with its recommendation.
6.3.04 PPC to evaluate the quotations by giving due consideration to price, paper
quality etc. and work order may then be issued obtaining approval from
appropriate authority.
6.3.05 At the time of issuing work order 5 to 10% of quoted value as deducted by the
competent authority to be kept as security money & to be refunded at the time of
final payment of the bill, subject to satisfactory completion of the printing work.
(There can be a clause of penalty if the products are subsequently found
substandard)
6.3.06 In case of any negligence or delay on the part of printing

institution/vender/supplier, provision for penalty as decided by the competent
authority to be included in the work order.
6.4.00 General:
This would include purchase/procurement of all items except renovation/decoration

work, vehicles & printing. Procedures included under General rules would apply for
any purchase/procurement under this category. Moreover management may delegate
power to Zonal office/branch to make small purchases required urgently.

CHAPTER 7
FINDINGS, CONCLUSION AND RECOMMENDATION
7.1 FINDINGS
 By analyzing the services offering and charges of CBL regarding Credit

cards comparing with other banks. CBL has the maximum grace period.

 CBL is also the provider of the maximum time in the market for payment
due date from statement date with 20 days comparing to the same of 15 days
provided by the other issuers.
 DBBL is in a leading position with 534 ATM booths all around the country. Currently
CBL has come to an agreement with DBBL to Share their ATM facility.
 The average time for the disbursement of fund (through cheque or pay order) to the
merchants is 2 day of CBL, 1-2 day(s) of BAL, and 3 days of DBBL and EBL. Being
aware of the importance of this matter, CBL is now trying to provide the fastest service
in the market.
 Late payment fee for local gold is Tk. 300 (offered by CBL) and local gold is
Tk 200 (offered by CBL& DBBL) which is low comparing to other banks.
 The lowest return cheque fee is Tk. 100 both for local gold and classic offered
by CBL.
 The Lowest annual fee for supplementary card local gold is Tk. 750 (offered by
CBL) and local gold is Tk 500 (offered by CBL).
7.2 CONCLUSION
In this age of modern civilization bank is playing its splendid role to keep to the
economic development wheel moving. We can see lot of new commercial banks
has been established in last few years and these banks have made this banking
sector very competitive. The major task for banks, to survive in this competitive
environment is by managing its assets and liabilities in an efficient way. The
overall success in credit management depends on the customer satisfaction.
From the analyses and findings of the study, it is obvious that there is a lot of
market potential for CBL in the Credit Card Business and some areas of
improvement are there also comparing to the existing issuers in the market. CBL
having basic infrastructure and a larger client base this is the high time for the
bank to enter into the business. Initially, it will require a huge investment, but
the bank is financially sound to incur such amount of investment in new line of
business. It is expected that Bangladesh will experience a heavy inflow of
foreign companies investing in various sectors especially in IT and Gas and Oil
Exploration and processing. This will give birth to various ancillary industries
and services, which will ultimately increase the purchasing power of people.
This factor enhances the chance of an up coming growing population of the
community who wants convenience of not carrying cash and the use credit card
is the easiest way of doing so.
7.3 RECOMMENDATION
The specific and broad recommendations of the study are as follows:

 Train employees to provide better service to the card holders and form a strong
sales force to sale its credit card

 The card delivery time should not be more than a week. But it should not be less
than 5 days. Because the possibility of incorrect assessment of the
creditworthiness of the applicants would be very high then.
 ATM facility is an advantage for the bank to provide ATM facility to its
cardholders. CBL should increase the number of its ATM booths
 In case of determining the charges and fees the bank should follow the least
price strategy, at least initially, while entering the market, to attract the
customers. The charges may be gradually increased while staying competitive
in the market.
 The bonus point system can be followed. Waiver on interest charges and/or
renewal charges will strike into minds of the cardholders and they will be more
satisfied and encouraged to do more and more card transaction.
 Customers should be offered occasional gifts and discounts, which can make
the credit card more attractive and keep the consumer delighted.
 Regular customer survey could also be conducted with an aim to find out the
customer's expectations or to know about their satisfaction on bank's
performance.
 Finally, heavy marketing and promotional campaign should be conducted to

popularize the product and make people aware of the service.
BIBLIOGRAPHY
TEXTBOOKS
R.D. Mason, W.G. Marchal & Douglas A. Lind, Statistical techniques in Business &
Economics, 11th edition, 2002

 Murray R. Spiegel & Larry J.Stephens, Theory and Problems of Statistics, 3rd Edition,
McGraw-Hill, 1999.
OTHER PUBLICATIONS
Brochures and publications of CBL products

 Annual report of the year 2008 of CBL
Credit Card Brochures and pricing guides of different issuers
WEBSITES (URLS)
Some websites are visited for collecting some secondary data, which are:
• http://www.thecitybank .com/
• http://www.visa.com/
• http://www.ebl.com
• http://www.bankasia.com
• http://www.dbbl.info
FORMULAS AND CALCULATION
5-Point Scale
Weight Priority Scale Satisfaction Level

Scale
st
5 1 Priority Very Satisfied
4 2nd Priority Satisfied
3 3rd Priority Indifferent
2 4th Priority Dissatisfied
1 5th Priority Very Dissatisfied
Table 16: Weight assigned to various scales for CPA analysis
I. ISSUERS
QUESTIONNAIRE
Dear Respondent, I am a student of Department of Business Administration,

Patuakhali Science and Technology University. I am going to conduct a
comparative analysis on The City Bank Ltd. credit card. This study is only
for use of my academic purpose and the provided information will be
treated confidentially. Thank you in advance for your kind cooperation.
Please read the questions carefully and just put a tick ( √ ) in the respective box ( □ ) and
kindly give your judgments where necessary.
1. What types of credit cards do you offer?
2. Do you offer free supplementary/spouse card?

□ Yes □ No
3. What are the credit limits of your various cards?
…………………………………………………
4. What is the average processing & delivery time of your cards? ………….Days
5. Do you provide cash withdrawal facilities to the cardholders?

□ Yes □ No
6. How many ATM booths does u have all over the country?
. . . . . . . . . . . . . . . . . . . .. . . . . . . .
7. Do you provide payment of utility facilities to the cardholders?
□ Yes □ No
8. Do you provide interest free period/grace period facilities to the cardholders?

□ Yes □ No
9. If yes, then……….. (Days)
10. What is your average fund disbursement fund disbursement time…………days.
11. What is the time for payment due date form statement date………..days
12. Please mention the fees and charges of your bank in the following table
Fees & Charges for local currency
Gold Classic
Annual Fee Basic Card
Annual Fee Supplementary Card
Renewal Fee Basic Card
Renewal Fee Supplementary Card
Replacement Card Fee
Late Payment Penalty
EOL Charge
Pin Re-issue Fee
Cash Advance Fee
Return Cheque Fee
Statement Retrieval Fee
Sales Slip Retrieval Fee
Out Station Cheque Collection Fee
Cash Advance Limit
Cash Advance Interest
Debit Interest
Advance Income Tax
Minimum Payment
THANK YOU
II. CARDHOLDERS
QUESTIONNAIRE
Dear Respondent, I am a student of Department of Business Administration,

Patuakhali Science and Technology University. I am going to conduct a
comparative analysis on The City Bank Ltd. credit card. This study is only for use of
my academic purpose and the provided information will be treated confidentially.
Thank you in advance for your kind cooperation.
Please read the questions carefully and just put a tick ( √ ) in the respective box ( □ ) and
kindly give your judgments where necessary.
1. What is your credit limit? BDT/USD ……………………………
2. Are you satisfied with your credit limit?
□ Yes □ No
3. How frequently do you use your Credit Card?
□ More than once a week □ Once a week
□ Once in every 15 days □ Once a month
□ Once in every 2 months □ Other, please
specify……………………
4. What is the average amount of your Credit Card transaction per month/year?
Monthly………………………… Or, Yearly…………………………..
5. If you use more than one card, please specify ………………………………
6. Why do you prefer to maintain more than one card? (Please specify)
□ To get the chance of buying from the maximum number of merchant locations
□ To strengthen the relationship with the issuing bank
□ To compare the services
□ To gain more prestige
□ given as office staff card
□ other reasons……………………………
7. What is the overall level of satisfaction regarding your Credit Card service?
□ Very Satisfied
□ Satisfied
□ Indifferent
□ Dissatisfied
□ Very Dissatisfied
8. How do the following attributes support your level of satisfaction?
VERY INDIF VERY

Attribute SATISFIED DISSATISFIED
SATISFIED FERENT DISSATISFIED
Cash withdrawal facility

Discount facility
Payment of utility bills
Interest charges & fees
Grace period
Number of ATM Booths
Customer service
Merchant coverage
Demographic Part
Sex: □ Male □ Female
Marital Status: □ Single □ Married
Age Group: □ 25 or less □ 26 – 35 □ 36 – 45

□ 46 – 55 □ 56 – 65 □ 66 and above
Occupation: □ Business □ Professional □ Service Holder (Govt.)

□ Banker □ Teacher □ Service Holder (Pvt.)
□ Other…………………
Income Level (Monthly income in BDT):

□ 10,000 - 24,000 □ 25,000 - 39,000 □ 40,000 - 54,000
□ 55,000 - 69,000 □ 70,000 - 84,000 □ 85,000 & above
Education Level: □ HSC □ Graduate □ Post Graduate

□ BBA □ MBA □ Ph. D
THANK YOU


A Comparative Analysis On Credit Card: Fees, Charges, Documentation and Customer Satisfaction of The City Bank Ltd.

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A Comparative Analysis On Credit Card: Fees, Charges, Documentation and Customer Satisfaction of The City Bank Ltd.

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CHAPTER 1

INTRODUCTION TO THE REPORT

1.1 ORIGIN OF THE STUDY

1.2 OBJECTIVES OF THE STUDY

A Comparative Analysis on Credit Card: Fees, Charges, Documentation and Customer

1.3 SIGNIFICANCE OF THE STUDY

The report titled: A Comparative Analysis on Credit Card: Fees, charges,

1.4 EXPECTED FINDINGS OF THE STUDY

A Comparative Analysis on Credit Card: Fees, Charges, Documentation and Customer

1.5.1 Sources of data

1.5.2 Sampling Technique Used

b) Sampling Design and Sample Size:

A Comparative Analysis on Credit Card: Fees, Charges, Documentation and Customer

1.5.3 Data Administering Method

1.5.4 Techniques of Data Analysis

Quantitative approaches like frequency distribution, cumulative percentage

Here, W = Total weight for the factor on a scale

1.6 LIMITATIONS OF THE STUDY

A Comparative Analysis on Credit Card: Fees, Charges, Documentation and Customer

A Comparative Analysis on Credit Card: Fees, Charges, Documentation and Customer

2.1 HISTORICAL BANKGROUND OF THE CITY BANK LIMITED

2.2 MISSION, VISSION AND OBJECTIVE OF CBL

A Comparative Analysis on Credit Card: Fees, Charges, Documentation and Customer

• To contribute to the socioeconomic development of the country,

2.2.2 Vision of CBL

2.3 STRATEGIES OF CBL

2.3.1 Location Based Strategy

2.3.2 Business Level Strategy

A Comparative Analysis on Credit Card: Fees, Charges, Documentation and Customer

2.3.2.1 Retail Banking Strategy:

2.3.2.2 SME Banking Strategy:

2.4 ORGANOGRAM OF CBL

Marketing, Development &

General Services Division

Human Resources Division

Research & Planning

Treasury & Money Market

Board Decretariat & Share

Cost Control Department

Law & Recovery

Figure 1: Organizational structure of CBL

3.1 DESCRIPTION OF SERVICES OFFERED BY CBL

The services offered by CBL are discussed below

3.1.1 Services of CBL

The CBL concentrates the following categories of banking services-

3.1.2 Retail Banking

3.1.3 SME Banking:

A Comparative Analysis on Credit Card: Fees, Charges, Documentation and Customer

3.1.4 Corporate and investment Banking

3.1.5 Duel Currency Credit Card

3.1.6 Computerization and Online Service

3.1.7 Islamic Banking

A Comparative Analysis on Credit Card: Fees, Charges, Documentation and Customer

3.1.9 Corporate Governance

The bank recognizes the importance of Corporate Governance and is committed to

3.1.10 Training Program

3.2 FUNCTIONAL DIVISIONS OF CBL

A Comparative Analysis on Credit Card: Fees, Charges, Documentation and Customer

3.2.1 Financial Division

3.2.2 Credit and risk management

3.2.3 Human Resource Division (HRD)

A Comparative Analysis on Credit Card: Fees, Charges, Documentation and Customer

3.2.5 Branches Control & Inspection Division