Internship Report on Performance Analysis of Various Departments of One Bank Limited

The broad objective of the study was to conduct the performance analysis of the various departments of ONE Bank Limited, Gulshan Branch over the years of its operation in the Commercial Banking sector in Bangladesh. The specific objectives identified are to relate theoretical knowledge with practical experience in several functions of the bank. Identify and evaluate different functional services offered by the bank to its clients. The process and the personnel involved in the various departments of the bank, to know about the pattern of the clients who are undertaking taking the services from the bank. Analyze the financial performance of the various departments of ONE Bank Limited, Gulshan Branch over the years of banking operations. The influence of Marketing Strategies in the operations of ONE Bank Limited, Gulshan Branch and analyze the possible Internal Factors (Strengths and Weaknesses) and External Factors (Opportunities and Threats) for ONE Bank Limited.ONE Bank Limited, a growing private sector commercial bank started its operations from May 1999 and have been progressing throughout the years of operations in Bangladesh. Since its establishment ONE Bank Limited has opened 26 branches in different cities such as Dhaka, Chittagong, Sylhet, Noakhali and in many other commercial areas in Bangladesh. In the near future, more branches are to be inaugurated to provide better quality of banking service to the customers.

This internship report is focused on the various departments of ONE Bank Limited, Gulshan Branch. Gulshan Branch one of the important branches of OBL has been operating with all the functional units or departments, which a most concerned branch requires to have. It has been successful in handling all the departments well enough and the clients are getting the maximum benefits from the service given through the Gulshan Branch.

The branch includes departments which follow the activities of General Banking, Retail Banking, Foreign Exchange and Credit facilities to the clients rendering the required services.

This report covers the findings and analysis of all the departmental activities carried out by ONE Bank Limited, Gulshan Branch. Financial performance of the departments is analyzed and the marketing strategies involved in the operations of the branch are verified. Along with it, the report also focuses on the SWOT Analysis and the SPACE Matrix done in order to find out what sort of steps and strategies are to be implemented by ONE Bank Limited, Gulshan Branch. In doing so, the bank can excel in providing better quality of products and services to

On the basis of convincing reasons, ONE Bank Limited management believes that in the coming years the Bank will try its level best to sustain its earning capacity and maintain a steady growth. With the current performance of the Bank and with little improvement here and they will certainly make ONE Bank Limited one of the best Private Bank in Bangladesh in the near future.


Background of the Report

The Internship program is an integral part of the BBA program that all the students have to undergo of American International University – Bangladesh (AIUB). The students are sent to various organizations where they are assigned projects. At the end of the program, the internships are required to place the accomplishments and findings of the project through the writing of the internship report covering the relevant topics. During this program, supervisor guides each student – one from the university and the other from the organization.

This report is the result of a 10 weeks (June03 – August 09, 2007) internship program in ONE Bank Limited, Gulshan Branch. This report contains Introduction about the report in Chapter 1; Overview of ONE Bank Limited in Chapter 2; The Analysis and the description of the different departmental activities of ONE Bank Limited, Gulshan Branch. in Chapter 3; The Findings of the different departments in Chapter 4; SWOT Analysis and SPACE Matrix for ONE Bank Limited in Chapter 5; Recommendations in Chapter 6; Conclusion in Chapter 7. The topic of the report has been consulted & directed by the internship supervisor from American International University – Bangladesh (AIUB).


Introduction of Topic

Banking sector, considered as ever growing child, in any country plays a pivotal role in setting the economy in motion and in its development process, while the banking structure -the number and size distribution of banks in a particular locality and the relative market power of specific banking institutions determines the degree of competition, efficiency and performance level of the banking industry. Bangladesh’s banking sector consists of Central Bank (named as Bangladesh Bank), Commercial Banks, Development Banks and Specialized Financial Institutions. The Commercial Banks comprise of Nationalized Commercial Banks (NCB), Local Private Banks, Foreign Private Banks, and Islamic Banks. In recent years, it is observed a mushroom growth in the banking sector in Bangladesh.

The very active and lively presence of private sector has stirred competition among the traditional Commercial Banks. The shadow of fierce competition in banking industry can be observed through the recent achievement of the Private Commercial Banks.
The competition to pursue clients and imitate one another is so intense that one bank lures efficient staff of another bank offering higher facilities to get better edge. Private Commercial Banks often introduce new and diversified financial products to provide wider option to customers. Without having an effective customer base, it becomes difficult for any bank to compete and sustain in the competitive market for the banking services.
In order to retain and attract new customers towards any particular bank, the bank management needs to have a clear operational efficiency and must thoroughly analyze the scopes for further development. Therefore it is a key area for the commercial banks to closely monitor their performance level, which comprises the functional units, that provides services to its clients.
So, taking the opportunity to highlight the analysis of the performance of the different functional units and prepare the study for my internship, I was allowed to share the practical experience with ONE Bank Limited, Gulshan Branch.

Rationale of the Study
The study was conducted on the various departments of ONE Bank Limited, Gulshan Branch. Gulshan Branch of ONE Bank Limited is considered to be one of their prior concerned branches, as there are many business and financial institutions located in the adjacent areas near Gulshan. Therefore, the activities carried out by the personnel of the various departments needs to be well acquainted with the customer oriented services. So, being a business graduate it was challenging experience for me to concentrate on customer services being provided by ONE Bank Limited. Meeting the customer requirements with the well-maintained operations of the departments was figured out and analyzed. Apart from the educational knowledge, the study put extra weight regarding the practical field and real life activities followed in the bank. Moreover, the study carried out also added value to the technical mechanisms and operations of the OBL. Along with my experience, the bank will be able to identify their flow of operations and can identify in which functional departments, the bank needs to put extra concentration so that the operations are well acquainted with the desired services offered by the bank to its clients.

Scope of the Report
he basic scope of conducting this study is to analyze the performance of various departments of ONE Bank Limited considering the Gulshan Branch. Through investigation and analysis of the respective departments over the years of operation can highlight the banks performance when compared to other commercial banks operating in the country. Due to modern concept in the banking operations are being practiced by different banks, the banking arena is considered to be very competitive. Therefore in keeping up with the performance through customer oriented services, ONE Bank Limited must be aware of its total operation procedure which can be determined by the performance of the respective departments.

In this research work, the overall view of the banking system, its history and mechanism, policies and appraisal of ONE Bank Limited and other areas of activity is extensively analyzed and the findings is clarified along with in depth study. The main part of the study covers the General Banking, operational scenario of Credit Department, Foreign Exchange, Remittance, Retail Banking Departments of ONE Bank Limited, Gulshan Branch. This will eventually refer that how the bank help the customers securing their cash and assets, getting credit facility, exporting and importing the goods and how it remits money of the foreign clients, etc.


Objective of the Report

1.5.1 Broad Objective
The broad objective of the study is to conduct the performance analysis of the various departments of ONE Bank Limited, Gulshan Branch over the years of its operation in the Commercial Banking sector in Bangladesh.

1.5.2 Specific Objectives
The specific objectives of this study are as follows:
Relate theoretical knowledge with practical experience in several functions of the bank.
Identify and evaluate different functional services offered by the bank to its clients.
The process and the personnel involved in the various departments of the bank.
To know about the pattern of the clients who are taking the services from the bank.
To analyze the financial performance of the various departments of ONE Bank
Limited, Gulshan Branch over the years of banking operations.
Influence of Marketing Strategies in the operations of ONE Bank Limited,

Gulshan Branch
Analyze the possible Internal Factors (Strengths and Weaknesses) and External
Factors (Opportunities and Threats) for ONE Bank Limited.
Methodology
1.6.1 Area of Investigation:
As the Banking Sector is very large, therefore I only focused on specific departments of banks and taking only consideration of the operations of ONE Bank Limited, Gulshan Branch, where I have been assigned to serve as an Internee. I have highlighting the operations of:
General Banking Department
Foreign Exchange Department (Import and Export)
Credit and Loan Department
Retail Banking Department
1.6.2 Source of Information:
The study is conducted on the basis of both primary and secondary data.
1.6.2.1 Primary Data:
The primary information was gathered through interviews, observation and group discussion. The primary data are collected from all the departments of ONE Bank Limited, Gulshan Branch by interviewing personnel of the respective departments. The heads of the departments or senior executives have been interviewed. However, the analysis and the explanation are the authors’ own.

1.6.2.2 Secondary Data
The secondary information was gathered through Annual Reports, Periodic Publication of the Bank, Bangladesh Accounting Standards, General Banking Manuals, Financial Statements of the banks, websites, etc. The data of the study are based on a review of existing brochures, documents and database of ONE Bank Limited.

1.6.3 Sampling Plan
1.6.3.1 Sampling Procedure:
The sampling procedure was conducted on the Deliberate Sampling method, where the respondents and the interviewees are considered on my convenience and priority.

1.6.3.2 Sampling Unit
In order to carry out the research work, I focused on taking the interviews of the Personnel involved in the different departments, Manager and Senior Level Employees, Business Clients.

1.6.4 Data Processing & Analyzing
The collected data was processed through computer encoding as well as manually, depending on the nature of the query being solved. The processed data was being analyzed. Finally, on the basis of the analysis results, the study concluded the answers to the research objectives for the final stage of the study and the report preparation.

1.7 Limitations
In every research work there exist some limitations that the researcher faces while conducting different activities. In the process of the research work, I came across certain limitations that hamper the actual findings and analysis of my research work. Some of the constraints that I have faced while conducting the research work are as follows:
The interviewees, who are the personnel involved in the various departments of the bank, may not be well acquainted with the formal procedures of the research work. The respondents may be biased on certain issues that hamper the total evaluation of the research work.
The study conducted can be hampered, as the total evaluation of the industry cannot be covered in a short period of time. In the cumulative time period of 10 weeks the actual phenomenon on the performance of the various departments of the bank can just be highlighted and some issues were overlooked.
A structured filing procedure is often neglected which also poses difficulty in understanding the sequential procedure.

The personnel of the bank are usually busy with their daily activities and routine tasks; therefore interacting with them during their office hours was difficult sometimes. Although most of the officers were very helpful and friendly but as because they have been busy with their works, they could not give much time to light up my knowledge about the Bank’s activities.
Lack of proper books, journals and articles available for the banks, sometimes created limitations for me to understand the banking terms and conditions.

The banking policies and manuals of OBL are of confidential in nature and thus it is difficult to collect the necessary literature and documents within this short time.

None the less, I tried my level best to make this report a good one and despite of many limitations in my approach, I expect that the reader of this report will have a broader view and idea about the different services and the performance rendered of the different departments of ONE Bank Limited concerning the Gulshan Branch.

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