Internship Report On The Retail Banking of Prime Bank Ltd : A Comparative Study with other Private Commercial Banks

Retail banking is typical mass-market banking, where individuals use local branches for banking. Services broadly include deposits, lending, cards and remittance. The retail-banking environment is changing fast. A banker from the 1980s cannot imagine the pace at which banks are operating today. Till 2000, banks carried out conventional banking, offered a few deposit and lending products. Now days, banks offer loans for housing, cars, education, credit cards, marriage, travel, medical treatment, car CNG conversion, festivals, renovation and what not. Bankers said the increasing use of modern technology has enhanced both the reach and accessibility of banking services. A big part of growth of the banking industry can be attributed to the surge in retail banking. Now a day Prime Bank Limited is providing different types of retail banking services to their customers. The bank has developed many products and customer touch points in the last five years. In addition to deposit and lending products, the bank has developed card products, internet banking, mobile banking, e-commerce and automated teller machines (ATM.In this report I actually detail the various retail banking services of Prime Bank Limited and try to make a comparative analysis with the retail banking services of Dhaka Bank Limited, BRAC Bank Limited, IFIC Bank Limited & Standard Chartered Bank Limited. I have selected these banks not on the basis of their size, but on the basis of the market acceptability of their Consumer’s Credit Scheme. And I also try to find out the strength, weakness, opportunity & probable threat associated with the retail banking services of Prime Bank Limited.

The use of technology has widened the reach of banking services. And a big part of growth of the industry can be attributed to the surge in retail banking. The retail-banking environment is changing fast. A banker from the 1980s cannot imagine the pace at which banks are operating today. Till 2000, banks carried out conventional banking, offered a few deposit and lending products. But now a days, banks offer loans for housing, cars, education, credit cards, marriage, travel, medical treatment, car CNG conversion, festivals, renovation and what not. Prime Bank Ltd. is operating as a scheduled bank under the banking license issued by Bangladesh Bank, the Central Bank. From the opening, PBL offering a number of credit facilities to its customers with a view to support its clients for converting their dream into real-life deeds. The recent offers of PBL includes: General Loan Scheme, Consumer Credit Scheme, Lease Finance, House Building / Apartment Loan Scheme, Hire Purchase, Advance against Share, and Small and Medium Enterprise (SME) Loan Scheme. Well-managed investment/ credit risk grading systems of PBL promote bank safety and soundness facilitating informed decision-making. Grading systems measure investment/ credit risk and differentiate individual investment/ credits and group of investment/ credits by the risk they pose. This allows bank management and examiners of PBL to monitor changes and trends in risk levels. The process also allows bank management to manage risk to optimize return. Considering the national and international market scenario, PBL will follow differential sector wise growth policies. For example: Real Estate: Shrink, Transport: Shrink, Cement: Shrink, Textile: Grow, Telecom: Grow, Trade Finance: Grow, Construction: Maintain etc. At the same time, it will also discourage some business type’s like- businesses that directly or indirectly affect social / normal values, Military Equipment/ Weapons Finance, Highly Leveraged Transactions, Finance of Speculative Investments, Logging, Mineral Extraction/ Mining, or other activity that is ethically or environmentally sensitive.

1.1 Objectives of the Study
To gain the relationship between theoretical and practical learning and the real life situation of Prime Bank Ltd. in operating its Consumer Credit Schemes is the primary objective of my study. The various concepts, which I have learnt from different courses during my MBA program, influencing an organization in various aspects, are considered chiefly here. The other objectives of the study are as follows-
To give an overview on Prime Bank Ltd. and its retail banking services.
To detail the Consumer Credit Scheme of PBL and its Consumer Credit Operation System.
To perform a comparative analysis on Consumer Credit Scheme of PBL with other private commercial banks.
Finding out the shortcomings of the Bank in its retail banking operations.
Providing some probable suggestions that help to overcome the shortcomings.

1.2 Scope of the Study
My assigned work was limited by the report topic to observe and collect information on Consumer’s Credit Scheme of different private sector banks. For this I have collected data and information on Consumer’s Credit Schemes of 3 private sector banks, along with Prime Bank Ltd. These are as follows:
· Dhaka Bank Limited
· BRAC Bank Limited
· IFIC Bank Limited
· Standard Chartered Bank (SCB)

I have selected these banks not on the basis of their size, but on the basis of the market acceptability of their Consumer’s Credit Scheme.

1.3 Methodology of the Study
1.4.1 Sources of Data
This report has been performed with the help of primary and secondary sources of data. This is basically a theoretical report where an attempt has been made to compare the retail banking services of PBL with other popular private commercial bank to find out problems and risk factors of retail banking services of the bank. The information has been collected from both sources-

§ Primary Data Collection
Primary sources of data have been collected through the discussion with officials of Prime Bank Limited, experts’ opinion and comments and the observations of the officials.
§ Secondary Data Collection
The sources of secondary data are as follows-

· Annual report of Prime Bank Limited.
· Different news paper, journals and magazines
· Website of Bangladesh bank
· Website of Dhaka Bank, BRAC Bank, IFIC Bank & Standard Chartered Bank
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