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Assessing Customer Satisfaction of Shahjalal Islami Bank Limited (Keraniganj Branch)

Md. Azim Ferdous BBA Program, 2008 (11th Batch) Roll No: 121

Supervisor Mrs. Rubina Maleque Associate Professor

Department of Management Studies Faculty of Business Studies University of Dhaka

November, 2009

Date: November 15, 2009 To The Senior Vice President Head of HRD Human Resources Division Shahjalal Islami Bank Ltd. Head Office 10 Dilkusha C/A, Dhaka. Through- The FAVP & Manager, Shahjalal Islami Bank Ltd., Keranigonj Branch. Subject: Submission of Internship Report. Dear Sir, I am hereby submitting you my internship report on Assessing Customer Satisfaction of Shahjalal Islami Bank Limited (Keraniganj Branch) as required by my internship appointment letter (SJIBL/HRD/HO/2009/1484/7) dated September 15, 2009. Im really thankful to you for giving me the opportunity to execute my internship program at the bank. I respectfully acknowledge your help that you so kindly accorded to me during the course of my internship program. Im also grateful for allowing my access in necessary information for preparing this report. Working for this report during my internship program has definitely enriched my knowledge and experience in practical field. Despite some limitations Ive tried my best to prepare this report as a decent one. Your kind acceptance of this report will be highly appreciated and should you need any assistance in interpreting the report, please call me; I am at your service. Sincerely yours__________________ Md. Azim Ferdous BBA-11th Batch, Roll No: 121 Department of Management Studies University of Dhaka Mobile No: +88 0193 393 797

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Preface
I would like to thank my internship program supervisor Mrs. Rubina Maleque for her prudent guidance and instruction that enabled me to accomplish the internship report successfully. I would like to thank the manager of Shahjalal Islami Bank Limited (Keraniganj Branch) for giving me the opportunity to execute my internship program at the bank and for allowing my access in necessary information for preparing this report. I would also like to express my immense gratitude to all of the officers of Shahjalal Islami Bank Limited who not only helped me a lot to prepare this report but also helped me with their guidance and by sharing their invaluable knowledge throughout my entire internship program.

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Table of Contents
Executive Summary................................................................................................................... IX Chapter 1: Introduction................................................................................................................1 1.1. Origin of the Report ..................................................................................................................... 1 1.2. Objectives ........................................................................................................................................ 1 1.3. Scope ................................................................................................................................................ 1 1.4. Historical Background .................................................................................................................. 2 1.5. Methodology ................................................................................................................................... 2 1.6. Limitations....................................................................................................................................... 3 1.7. Acronyms & Definitions .............................................................................................................. 3 1.8. Report Preview ............................................................................................................................... 4 Chapter 2: Islami Banking ......................................................................................................... 5 2.1. Concept of Islami Banking .......................................................................................................... 5 2.2. History of Islami Banking ............................................................................................................ 6 2.2.1. Classical Islami Banking ........................................................................................................ 6 2.2.2. Modern Islamic Banking ....................................................................................................... 6 2.2.3. Islamic Banking in Bangladesh ............................................................................................ 7 Chapter 3: Organizational Profile ............................................................................................. 8 3.1. About Shahjalal Islami Bank Ltd. (SJIBL) ................................................................................ 8 3.2. Vision ............................................................................................................................................... 8 3.3. Mission ............................................................................................................................................. 8 3.4. Strategies .......................................................................................................................................... 8 3.5. Motto ................................................................................................................................................ 9 3.6. Organizational Structure/Organogram..................................................................................... 9 3.7. Divisions of Shahjalal Islami Bank Ltd. .................................................................................. 10 3.8. Capital Structure ........................................................................................................................... 11 3.9. Company Growth ........................................................................................................................ 12 3.10. Corporate Social Responsibility (CSR) ................................................................................. 19 3.11. Products ....................................................................................................................................... 20 3.11.1. Deposit Accounts............................................................................................................... 20 3.11.2. Deposit Schemes ................................................................................................................ 22 3.11.3. Investment Schemes .......................................................................................................... 22 3.12. Services ........................................................................................................................................ 30

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3.12.1. Online Banking Services ................................................................................................... 30 3.12.2. SJIBL VISA Card Services ............................................................................................... 30 3.12.3. SMS/Push Pull Services ................................................................................................... 31 3.12.4. Foreign Remittance Services............................................................................................ 32 3.12.5. Capital Market Services ..................................................................................................... 33 3.12.6. SME Services ...................................................................................................................... 33 3.12.7. Other Services ..................................................................................................................... 34 3.13. Performance of the Bank (Ratings) ....................................................................................... 34 3.13.1. Credit Rating ....................................................................................................................... 34 3.13.2. CAMELS Rating ................................................................................................................ 35 Chapter 4: Assessing Customer Satisfaction of SJIBL ........................................................36 4.1. Literature Review ......................................................................................................................... 36 4.1.1. Definition of Customer....................................................................................................... 36 4.1.2. Definition of Satisfaction.................................................................................................... 37 4.1.3. Definition of Customer Satisfaction ................................................................................ 37 4.1.4. Why to Measure Customer Satisfaction .......................................................................... 37 4.2. Process used in Assessing Customer Satisfaction Level of SJIBL (Keraniganj Br.) ..... 39 4.2.1. The Customer Satisfaction Measurement Model .......................................................... 39 4.2.2. The Questionnaire/ Instrument ....................................................................................... 39 4.2.3. The Rating Scale ................................................................................................................... 41 4.2.4. The Cut-Off Score ............................................................................................................... 41 4.2.5. The Gap Score ...................................................................................................................... 42 4.3. Findings & Analysis..................................................................................................................... 43 4.3.1. Calculation of Average SERVQUAL Scores for Each of 5 (five) SERVQUAL Dimensions....................................................................................................................................... 67 4.3.2. Calculation of Unweighted SERVQUAL Score ............................................................ 69 4.3.3. Calculation of Weighted SERVQUAL Score/ Customer Satisfaction Index (CSI) .... 69 Chapter 5: Conclusion ................................................................................................................70 5.1. Ending Summary ......................................................................................................................... 70 5.1.1. Quantitative Findings .......................................................................................................... 70 5.1.2. Qualitative Findings ............................................................................................................. 71 5.2. Recommendations ....................................................................................................................... 72 Works Cited ..................................................................................................................................74 Appendix.......................................................................................................................................77

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Table of Figures
Figure 1: Three-tier Mudaraba System ....................................................................................... 6 Figure 2: Organizational Chart (Organogram) of SJIBL.......................................................... 9 Figure 3: Equity Composition of 2008 ..................................................................................... 12 Figure 4: Equity Movement from 2004 to 2008 ..................................................................... 13 Figure 5: Capital Adequacy Position from 2004 to 2008 ....................................................... 13 Figure 6: Deposit Mix of 2008................................................................................................... 14 Figure 7: Trend of Deposit from 2004 to 2008 ...................................................................... 14 Figure 8: Investment Portfolio of 2008 .................................................................................... 15 Figure 9: Trend of Investment from 2004 to 2008 ................................................................. 16 Figure 10: Deposit & Investment Growth .............................................................................. 16 Figure 11: Operating Results from 2006 to 2008 .................................................................... 17 Figure 12: Number of Branches ................................................................................................ 18 Figure 13: Manpower Position from 2004 to 2008 ................................................................. 18 Figure 14: Long Term Credit Rating of SJIBL from 2006 to 2008 ...................................... 35 Figure 15: Short Term Credit Rating of SJIBL from 2006 to 2008 ...................................... 35 Figure 16: Example of a 5 Point Likert Rating Scale .............................................................. 41 Figure 17: Satisfaction Score & Loyalty, Indifference, Defection Zone .............................. 42 Figure 18: Gender Ratio among Samples ................................................................................. 43 Figure 19: Samples Age Clusters .............................................................................................. 43 Figure 20: Sample Ratio based on Profession ......................................................................... 44 Figure 21: Respondents' response on acting of employees according to promise ............. 45 Figure 22: Respondents' response on employees sincere interest in Problem Solving ..... 46 Figure 23: Respondents' response on having service right at the first time ........................ 47 Figure 24: Respondents' response on having services by the promised time ..................... 48 Figure 25: Respondents' response on insistence of error free record .................................. 49 Figure 26: Respondents' response on employees behavior in instilling confidence in customers ................................................................................................................... 50 Figure 27: Respondents' response on feeling safe in transactions ........................................ 51 Figure 28: Respondents' response on consistent courtesy of employees ............................ 52

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Figure 29: Respondents' response based on employees knowledge ..................................... 53 Figure 30: Respondents' response on modern looking equipment ...................................... 54 Figure 31: Respondents' response on visually appealing physical facility ............................ 55 Figure 32: Respondents' response on neat appearance of employees .................................. 56 Figure 33: Respondents' response on appealing appearance of materials ........................... 57 Figure 34: Respondents' response on getting individual attention ....................................... 58 Figure 35: Respondents' response on operating hour of the bank ....................................... 59 Figure 36: Respondents' response on having personal attention providing employees .... 60 Figure 37: Respondents' response on having best interest of customers to employees heart ............................................................................................................................ 61 Figure 38: Respondents' response on understanding of specific needs of them by the employees ................................................................................................................... 62 Figure 39: Respondents' response on getting information of exactly when service will be given ........................................................................................................................... 63 Figure 40: Respondents' response on getting prompt service ............................................... 64 Figure 41: Respondents' response on employees willingness to help ................................. 65 Figure 42: Respondents' response on business of employees while to respond customers ..................................................................................................................................... 66

List of Tables
Table 1: Tier-1 Capital (Core Capital) Table 2: Tier-2 Capital (Supplementary Capital) Table 3: Deposit Mix Table 4: Investments Portfolio Table 5: Operating results of the year 2008 & 2007 Table 6: Credit Rating Result from 2006 to 2008 Table 7: Samples Frequency Distribution based on Gender Table 8: Samples Frequency Distribution based on Age Table 9: Samples Frequency Distribution based on Profession Table 10: Survey result of the statement 1 (Act according to Promises) Table 11: Survey result of the statement 2 (Sincere Interest in Problem Solving) Table 12: Survey result of the statement 3 (Performs the Service Right the First Time) Table 13: Survey result of the statement 4 (Provides Services at the Time 12 12 14 15 17 35 43 43 44 45 46 47

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Promised) Table 14: Survey result of the statement 5 (Insists on Error Free Records) Table 15: Survey result of the statement 6 (Employees Behavior Instills Confidence in Customers) Table 16: Survey result of the statement 7 (Customers Feel Safe in Transaction) Table 17: Survey result of the statement 8 (Consistent Courtesy of Employees) Table 18: Survey result of the statement 9 (Employees have the Knowledge to Answer Customers' Question) Table 19: Survey result of the statement 10 (Modern Looking Equipments) Table 20: Survey result of the statement 11 (Visually Appealing Physical Facilities) Table 21: Survey result of the statement 12 (Neat Appearance of Employees) Table 22: Survey result of the statement 13 (Appealing Appearance of Materials) Table 23: Survey result of the statement 14 (Gives Customers Individual Attention) Table 24: Survey result of the statement 15 (Has Convenient Operating Hours for Customers) Table 25: Survey result of the statement 16 (Has Employees to Give Customers Personal Attention) Table 26: Survey result of the statement 17 (Has Best Interest of Customers at Heart) Table 27: Survey result of the statement 18 (Employees Understand Specific Needs of Customers) Table 28: Survey result of the statement 19 (Informs exactly when Services will be provided) Table 29: Survey result of the statement 20 (Gives Prompt Services) Table 30: Survey result of the statement 21 (Employees are Always Willing to Help) Table 31: Survey result of the statement 22 (Never too Busy to Respond Customer Requests) Table 32: Average Reliability SERVQUAL score Table 33: Average Assurance SERVQUAL score Table 34: Average Tangibles SERVQUAL score Table 35: Average Empathy SERVQUAL score Table 36: Average Responsiveness SERVQUAL score Table 37: Calculations to obtain unweighted SERVQUAL Score Table 38: Calculations to obtain Customer Satisfaction Index (CSI) Table 39: Debit Card Usage Limit Table 40: SWIFT Codes

48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 67 68 68 69 69 69 78 78

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Executive Summary
With a commitment of providing cordial service to customers Shahjalal Islami Bank Limited has diversified its service coverage during last eight years by opening new branches at different strategically important locations across the country offering various service products both investment & deposit. Adequate capital, good quality of asset, smooth growth, enough liquidity, well performance in CSR, etc. backs up its strong position in CAMELS rating (having a rating of Strong or A-class Bank) for consecutive years. Customer satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within a business. So, assessing the level of customer satisfaction actually helps to measure an organizations position in business. Ive measured the customer satisfaction level of Shahjalal Islami Bank Limited, Keraniganj Branch. Ive calculated the Customer Satisfaction Index by using SERVQUAL instrument having 22 statements on service quality dimensions through face to face interviews with the accountholders of the bank. Their agreements (agree & strongly agree) with the SERVQUAL statements touching the cut off score (4) in used 5 point Likert Scale is considered as satisfied in this study. The study shows that customers conceive this bank as reliable in getting accurate promised services, problem solving and in maintaining error free record. They also believe that there is assurance of competency, courtesy, credibility & security by the bank. They are also satisfied by the tangible appearances of the bank. But the customers are not enough satisfied in getting personal attention and they think that employees do not understand their specific needs. They also think that the employees are not enough responsive in providing prompt services and in informing that exactly when service will be provided. The unweighted SERVQUAL score of 4.13 and weighted score or Customer Satisfaction Index of 4.10 indicates a satisfactory state in the overall level of customer satisfaction. On the basis of conducted Key Informants Interviews, the quantitative study result and my observation I believe that appointing more employees under General Banking department, maintaining time slots for each customer to serve, setting up of electronic calling machine for cash counter, setting up of query desk, replacement of core banking software by better one, regular arrangement of employee training workshops, appointing female employees, etc. will help to increase the satisfaction level of the customers of the bank.

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Chapter 1: Introduction 1.1. Origin of the Report This report is prepared as an internship report which is a mandatory requirement for successful completion of BBA program under University of Dhaka and which aims to reflect the professional view of real world working environment. This internship report is required to submit after fulfilling 45 days of working experience in an organization as a trainee. I got proper supervision of my academic supervisor Mrs. Rubina Maleque, Associate Professor, Department of Management Studies, University of Dhaka throughout my internship period for the successful completion of the report titled Assessing Customer Satisfaction of Shahjalal Islami Bank Limited (Keraniganj Branch) 1.2. Objectives Broad Objective The objective of this study is to determine the customers level of satisfaction of Shahjalal Islami Bank Ltd., Keraniganj Branch. Specific Objectives The specific objectives of the study are toa. Know the ability of employees to perform promised service dependently and accurately. b. Know to what level the customers are assured by competence, courtesy, credibility and security by the bank and its employees. c. Measure to what extent the tangible appearances are satisfying customers. d. Evaluate customers satisfaction in getting convenient banking hour, care & individual attention. e. Assess willingness of employees to help customers & to provide prompt service. f. Compute the unweighted overall satisfaction level of the customers & weighted Customer Satisfaction Index. 1.3. Scope The report deals with measuring the satisfaction level of the customers of Shahjalal Islami Bank Limited, Keraniganj Branch. These customers are the people who have account in this branch. The total population is not covered here. It is based on sample survey. Thus the satisfaction level of the entire customers of Shahjalal Islami Bank Limited or any other branch of the bank is not measured here and these will not be a Chapter 1: Introduction Page | 1

part of the report. The study was conducted from 18th of October, 2009 to 3rd of November, 2009. Thus the samples were selected from the customers who came to bank in during this time period. 1.4. Historical Background The Keraniganj Branch of Shahjalal Islami Bank Limited started its journey at 17th September, 2008. Though a there were initiatives to measure the customer satisfaction at the branch a year ago, that was in its very beginning period and the Customer Satisfaction Index was not measured. And as the satisfaction level of customers changes, this report on the level of customers satisfaction will provide an option to compare the level of satisfaction now with that of a year earlier. 1.5. Methodology In order to conduct this internship report both primary & secondary data have been utilized. Primary Data Collection The primary data have been obtained through using following two techniques: a. Key Informant Interview Process: Ive used this process to collect qualitative data on customer satisfaction, its influencing elements, ways to improve it, etc. For this reason I have conducted KIIs with the following personnel: Md. Masum Khan Jewel, Trainee Senior Officer Mohammad Alamin, Trainee Officer Mohammad Abdul Awal Khan, Client Relationship Officer Sarker Sahiduzzaman, Client Relationship Officer b. SERVQUAL Instrument: To get quantitative data on customer satisfaction directly from customers with a view to measure their level of satisfaction Ive interviewed 50 account holders of Shahjalal Islami Bank Ltd. having different profession & who lies in different age group using the SERVQUAL instrument. The interviews have been conducted using a structured questionnaire containing 22 questions representing the five dimensions of customer satisfaction measurement. A sample questionnaire has been annexed in the appendix part. The time period of the study lies in between 18th of October, 2009 to 3rd of November, 2009. Secondary Data Collection The secondary data have been collected from published literatures, journals, company reports, head offices orders, websites, etc.

Chapter 1: Introduction

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Data Analysis & Interpretation All the quantitative data collected by surveying customers have been analyzed by using Microsoft Excel 2007. Using the programs formula Ive calculated mean, mode, maximum, minimum, standard deviation, average weight, number of respondents for each answer, etc. All these information have presented by using tables and graphs in chapter 4. To achieve my research objective I transformed the collected data into two categoriesUnsatisfactory & Satisfactory. If respondents responses are Strongly Disagree, Disagree & Neutral then these are treated as unsatisfactory for the organization and if respondents responses are Agree & Strongly Agree then these are treated as satisfactory for the organization. 1.6. Limitations The limitations of the report and the study are follows: The report has been conducted within a short time frame. The study is self financed. Only Keraniganj Branch of the bank has been considered for the study. The sample size does not represent the total population. Samples were selected conveniently. For the convenient of the study non probability samples have been used. All weights given are judgmental. As time frame was short and the whole study was conducted by one person there is chance of having error in any stage of data collection, data entry, data organizing, data sorting, data testing, data presentation, interpretation of result, etc. 1.7. Acronyms & Definitions ATM-Automated Teller Machine BOD-Board of Directors CAMELS- Acronym of Capital adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity to market risk. It is a supervisory rating system of the bank's overall condition. CAR- Capital Adequacy Ratio CMSD- Capital Market Service Division CRISL- Credit Rating and Information Services Limited CS-Customer Satisfaction

Chapter 1: Introduction

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CSI-Customer Satisfaction Index CMT-Common Measurements Tool CSR-Corporate Social Responsibility JIT-Just In Time Likert Scale-A psychometric scale commonly used in questionnaires, and is the most widely used scale in survey research. When responding to a Likert questionnaire item, respondents specify their level of agreement to a statement. The scale is named after its inventor, psychologist Rensis Likert. KII-Key Informant Interview is a standard anthropological method used in rapid assessment for gathering information from the affected community. The term key informant refers to anyone who can provide detailed information and opinion based on his or her knowledge of a particular issue. Key informant interviews seek qualitative information that can be narrated and cross checked with quantitative data, a method called triangulation. MTCN- Money Transfer Control Number NPI-Non-Performing Investment PCB- Private Commercial Bank POS-Point of Sale (Fund transfer machine for purchasing at any shop/ service center, etc.) RATER-Reliability, Assurance, Tangibles, Empathy, and Responsiveness RIP- Rural Investment Program SJIBL-Shahjalal Islami Bank Limited SME- Small and Medium Enterprises Tier 1 Capital- Tier 1 capital includes paid up capital, reserve and retained earnings. It is called the core capital. Tier 2 Capital- Tier 2 capital includes general provision on unclassified investments and exchange equation account. It is called the supplementary capital.

1.8. Report Preview After the introductory chapter the second chapter covers the Islami banking concept and its history. Then chapter three covers the organizational profile which includes the mission, vision, motto, organizational structure, divisions, capital structure, performance, growth, products & services, etc. Chapter four is the research part, which focus the actual report topic. This section covers the way to conduct the study, study findings. And finally chapter five covers both qualitative & quantitative findings and recommendations. Chapter 1: Introduction Page | 4

Chapter 2: Islami Banking 2.1. Concept of Islami Banking Islami/ Islamic Banking, a new type of banking that operates on principles adhering to the Quranic norms forbidding usury and transactions, including granting of loans or credits for interest. The economic rationale for eliminating riba (interest) and establishing the Islamic banking system is based on values of justice, efficiency, stability and growth. It is assumed that under the system of Islamic banking, the industrial and/or commercial risk is shared more equitably between the entrepreneur and the capital owner and the returns on investment are shared among the investors on the basis of their proportionate capital. The conventional banks tend to serve the most creditworthy borrowers, while the Islamic banking system presumably looks for the most productive and profitable projects. The Islamic banking approach theoretically opposes the idea of discrimination in offering banking services to people of different social standings and provides for social cohesion between different classes. Islamic banking has the same purpose as conventional banking except that it operates in accordance with the rules of Shariah, known as Fiqh al-Muamalat (Islamic rules on transactions). The basic principle of Islamic banking is the sharing of profit and loss and the prohibition of riba (usury). Amongst the common Islamic concepts used in Islamic banking are profit sharing (Mudharabah), safekeeping (Wadiah), joint venture (Musharakah), cost plus (Murabahah), and leasing (Ijarah). The origins of Islamic banking can be traced back to the practice of mudaraba by the Prophet Muhammad (Sm) himself. The Prophet (Sm) was mudarib (agent) for his wife, who entrusted her capital or merchandise to him for trading and got back the principal plus an agreed share of the profit. As a reward for his labour (and entrepreneurship), the Prophet (mudarib) received his share of the same. The mudarib, however, was not liable for losses resulting from the exigencies of travel or from an unsuccessful business venture. This form of partnership is called mudaraba. There is another form of partnership called musharaka, in which the musharik (agent) has a contribution to the capital and can therefore, claim a higher percentage of profit. As early as in the seventh century, the tax revenue from Iraq was sent across the desert to Medina in the form of a mudaraba. Caliph Umar is known to have invested orphans' money in merchant trading between Medina and Iraq. Musharaka partnerships were practised in the north-south trade between Egypt and Jeddah during the eleventh century. As many as 32 mudaraba contracts were practised in the 17th century in the Turkish city of Busra. Mudaraba was in practice in Tunisia, Indonesia, Arabian Peninsula and India.

Chapter 2: Islami Banking

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Tier 1 Rab-al-mal

Individual who wishes to invest capital

Tier 2 Mudarib (Bank)

Agent to whom the rab-al-mal entrustes has capital by contract

With whom mudarib signs a contract, and to whom the mudarib passes the capital originally Tier 3 entrusted to him by the rab-al-mal Entrepreneur Figure 1: Three-tier Mudaraba System

Modern Islamic banking concepts came from the historical practice of the concept of a 'three-tier mudaraba'. On the first tier, there is the individual, rab-al-mal, who wishes to invest capital. The second tier is the mudarib (agent), to whom the rab al-mal entrusts his capital by contract and finally, on the third tier, there is the entrepreneur, with whom the mudarib signs a contract, and to whom the mudarib passes the capital originally entrusted to him by the rab-al-mal.

2.2. History of Islami Banking 2.2.1. Classical Islami Banking During the Islamic Golden Age, early forms of proto-capitalism and free markets were present in the Caliphate, where an early market economy and an early form of mercantilism were developed between the 8th-12th centuries, which some refer to as "Islamic capitalism". A vigorous monetary economy was created on the basis of the expanding levels of circulation of a stable high-value currency (the dinar) and the integration of monetary areas that were previously independent. A number of innovative concepts and techniques were introduced in early Islamic banking, including bills of exchange, the first forms of partnership (mufawada) such as limited partnerships (mudaraba), and the earliest forms of capital (al-mal), capital accumulation (nama al-mal), cheques, promissory notes, trusts (Waqf), startup companies, transactional accounts, loaning, ledgers and assignments. Organizational e nterprises similar to corporations independent from the state also existed in the medieval Islamic world, while the agency institution was also introduced. Many of these early capitalist concepts were adopted and further advanced in medieval Europe from the 13th century onwards. 2.2.2. Modern Islamic Banking The first modern experiment with Islamic banking was undertaken in Egypt under cover without projecting an Islamic imagefor fear of being seen as a manifestation of Islamic fundamentalism that was anathema to the political regime. The pioneering effort, led by Ahmad Elnaggar, took the form of a savings bank based on profitChapter 2: Islami Banking Page | 6

sharing in the Egyptian town of Mit Ghamr in 1963. This experiment lasted until 1967 (Ready 1981), by which time there were nine such banks in the country. In 1972, the Mit Ghamr Savings project became part of Nasr Social Bank which, till date, is still in business in Egypt. In 1975, the Islamic Development Bank was set-up with the mission to provide funding to projects in the member countries. The first modern commercial Islamic bank, Dubai Islamic Bank, opened its doors in 1975. In the early years, the products offered were basic and strongly founded on conventional banking products, but in the last few years the industry is starting to see strong development in new products and services. Islamic Banking is growing at a rate of 10-15% per year and with signs of consistent future growth. Islamic banks have more than 300 institutions spread over 51 countries, plus an additional 250 mutual funds that comply with the Islamic principles. The relative stability of Islamic banking institutions in current recession has gained it attention. Even The Vatican said banks should look at the rules of Islamic finance to restore confidence amongst their clients at a time of global economic crisis. Conservative estimates suggest that over US$ 500 billion of assets are managed according to Islamic investment principles. The World Islamic Banking Conference, held annually in Bahrain since 1994, is internationally recognized as the largest and most significant gathering of Islamic banking and finance leaders in the world. 2.2.3. Islamic Banking in Bangladesh Islamic banking started in Bangladesh through establishment of the Islami Bank Bangladesh Ltd. (IBBL), which is considered to be the first interest-free bank in Southeast Asia. Al-Baraka Bank Ltd., often called the second Islamic bank of Bangladesh, commenced banking business on 20 May 1997. It is a joint-venture enterprise of Al-Baraka Investment and Development Company, a renowned financial and business house of Saudi Arabia, Islamic Development Bank, a group of eminent industrialists of Bangladesh, and the government of Bangladesh. In 1996, two more Islamic banks were given clearance to operate under Islamic banking principles. They were the Al-Arafah Islami Ltd. and Social Investment Bank. The fifth Islamic bank of the country is a foreign bank named the Shamil Bank of Bahrain, which was created through merger of the Faisal Islamic Bank of Bahrain and an Islamic Finance Company. Now 6 (six) local Private Commercial Banks (PCBs) are working at Bangladesh. These are as follows: a. Al-Arafa Islami Bank Ltd. d. Islami Bank Ltd. b. Export-Import/ExIm Bank Ltd. e. Shahjalal Islami Bank Ltd. c. ICB Islami Bank Ltd. f. Social Investment Bank Ltd. Chapter 2: Islami Banking Page | 7

Chapter 3: Organizational Profile 3.1. About Shahjalal Islami Bank Ltd. (SJIBL) Shahjalal Islami Bank Limited (SJIBL) commenced its commercial operation in accordance with principle of Islamic Shariah on the 10th May 2001 under the Bank Companies Act, 1991. During last eight years SJIBL has diversified its service coverage by opening new branches at different strategically important locations across the country offering various service products both investment & deposit. Islamic Banking, in essence, is not only interest-free banking business, it carries deal wise business product thereby generating real income and thus boosting GDP of the economy. Board of Directors enjoys high credential in the business arena of the country, Management Team is strong and supportive equipped with excellent professional knowledge under leadership of a veteran Banker Mr. Muhammad Ali. 3.2. Vision To be the unique modern Islami Bank in Bangladesh and to make significant contribution to the national economy and enhance customers' trust & wealth, quality investment, employees' value and rapid growth in shareholders' equity. 3.3. Mission To provide quality services to customers To set high standards of integrity To make quality investment To ensure sustainable growth in business To ensure maximization of Shareholders' wealth To extend our customers innovative services acquiring state-of-the-art technology blended with Islamic principles To ensure human resource development to meet the challenges of the time. 3.4. Strategies To strive for customers best satisfaction & earn their confidence To manage & operate the Bank in the most effective manner To identify customers needs & monitor their perception towards meeting those requirements To review & updates policies, procedures & practices to enhance the ability to extend better services to the customers Chapter 3: Organizational Profile Page | 8

To train & develop all employees & provide them adequate resources so that the customers needs are reasonably addressed To promote organizational efficiency by communicating company plans, polices & procedures openly to the employees in a timely fashion To cultivate a congenial working environment To diversify portfolio both the retail & wholesale markets 3.5. Motto Committed to Cordial Service 3.6. Organizational Structure/Organogram
Chairman Board of Direcotrs Deputy Managing Director Managing Director Executive Vice President Senior Vice President Vice President Senior Assistant Vice President Assistant Vice President First Assistant Vice President Junior Assistant Vice President Senior Executive Officer Board Committees Deputy Managing Director

Executive Officer First Executive Officer


Senior Officer Figure 2: Organizational Chart (Organogram) of SJIBL

Chapter 3: Organizational Profile

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A. Board of Directors: Shahjalal Islami Banks Board of Directors consists of the following postsa. Chairman b. Vice Chairmen c. Directors d. Independent Director e. Sponsors f. Managing Director g. Company Secretary B. Executive Committee: This banks executive committee has following 10 postsa. Chairman b. Vice Chairman c. Member (Seven) d. MD & Ex-officio Member C. Audit Committee: SJIBLs audit committee is made up of 3 individuals-Chairman and two members. D. Shariah Council: Shariah Council of the Bank is playing important role in guiding and supervising the implementation and compliance of Islamic Shariah principles in all activities of the Bank since its very inception. The Council, which enjoys a high status in the structure of the Bank, consists of prominent ulema, reputed banker, renowned lawyer and eminent economist. Members of the Shariah Council meet frequently and deliberate on different issues confronting the Bank on Shariah matters. They also conduct Shariah inspection of branches regularly so as to ensure that the Shariah principles are implemented and complied with meticulously by the branches of the Bank. E. Management of the Bank: Managing Director, Deputy Managing Director, Senior Executive Vice President, Executive Vice Presidents, Senior Vice Presidents, Vice Presidents, Senior Assistant Vice Presidents, Assistant Vice Presidents, etc. are the people who are holding the managerial positions of the bank. 3.7. Divisions of Shahjalal Islami Bank Ltd. Shahjalal Islami Bank Ltd. has some major divisions comprising of various departments. The major divisions are as follows: a. Investment Division: This division has the authority to determine the party or the client who will get the credit facility from the bank. The credit clients are selected according to the criteria of credit policy. This division has the full authority to take Chapter 3: Organizational Profile Page | 10

any decision against or favor the client and these divisional works is supported by the Credit Services Division. b. Financial Administration Division: This division can handle the credit proposal, disbursement, monitoring and credit recovery position that is given by all branches. Each branch has their own credit division and all branch-wise activities are supported to the head office credit services division. c. Audit and Inspection Division: This division can control all the financial position, activities of overall organization. They provide the total budgetary limitation to every department for the respective year. They also carry out the financing activities with the access and operational activities. d. Marketing and Public Relation Division: This division mainly works for: Improving the marketing network throughout the country Implementing the marketing strategies and the concept of Trade Marketing Improving the procedure which is ultimately provided data regarding to competition and relative market Arranging the several workshops and seminar this can improve the quality of existing officers as a competitive edge position. e. Common Service Division: This division can handle all the genera activities except the credit and financial sector. All the administration activities are designed and implemented by this division. f. Human Resource Division (HRD): This division deals with the employees as the core resources of the organization. This division mainly emphasis on the recruitment of employees and the employee benefits and services. The main philosophy of this division is to motivate the employee to work with efficiently and effectively. g. Computer (IT) Division: This division can handle the IT activities. Each branch has their own IT division and all branch-wise activities are reported to the head office IT division. h. International Division: This division can work on internationally. The entire branch-wise international work is controlled and monitored by this division. 3.8. Capital Structure At the very inception, Shahjalal Bank started with an authorized capital of BDT 800 million. While its initial paid up capital was BDT 205 million subscribed by the sponsors in the year 2001. The capital and reserve of the bank as on 31 st December, 2008 stood at BDT 4069 million including paid up capital of BDT 2246 million. The Chapter 3: Organizational Profile Page | 11

Capital Adequacy Ratio (CAR) as of 31st December, 2008 stood at 13.81% (Tier-1 capital 12.24% and Tier-2 capital 1.57%) that was well above minimum requirement of 10% by Bangladesh Bank. The capital management framework is designed to ensure that bank maintains sufficient capital consistent with the banks risk profile, all applicable regulatory requirement and credit rating considerations. The capital management process is consistently reviewed by the senior management of the bank. It is frequently reviewed by the board also and appropriate decisions are being adopted time to time to strengthen banks capital. 3.9. Company Growth Growth in Equity: The authorised capital of the bank is BDT 4000 million and paidup capital of the bank is BDT 2246 as on 31st December, 2008. Total equity was BDT 4069 million as on 31st December, 2008. These amounts are better than previous years. Table 1: Tier-1 Capital (Core Capital) Sl. No. Particulars a Paid-up Capital b Statutory Reserve c Retained Earnings Sub Total (Amount in million BDT) 2008 2007 2245.98 1871.65 823.55 510.39 535.91 405.69 3605.44 2787.73

Table 2: Tier-2 Capital (Supplementary Capital) (Amount in million BDT) Sl. No. Particulars 2008 2007 d General Provision 463.48 252.98 e Exchange Equalization 0.17 0.17 Sub Total 463.65 253.15 Total Equity 4069.09 3040.88
Equity Composition of 2008

0%
12% 13% 55% 20%
Paid-up Capital Statutory Reserve

Retained Earnings
General Provision Exchange Equalization

Figure 3: Equity Composition of 2008

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Equity Movement from 2004 to 2008


4500 4000 4069.09 3040.88

3500
In Million BDT 3000 2500 2000 1500 1000 500 0 2004 848.35 340.06 2005 2006 2007 2008 1362.57

Figure 4: Equity Movement from 2004 to 2008

Growth in Adequate Capital: Total equity of the bank as on 31st December of 2007 was BDT 3040.88 million and the total equity stood to BDT 4069.09 million on 31 st December of 2008, which was 13.81% of the risk weighted assets as against the requirement of 10.00%. Though 2008s figure is lower than that of 2007 it is still higher enough than the required adequate capital. The core capital was 12.24% of risk weighted assets as on 31 st December, 2008 against requirement of 5%.
Capital Adequecy Position from 2004 to 2008
Actual 18 16 14 12 10 8 6 4 2 0 Requirement 16.42 10.39 9 10 13.81 10

In million BDT

9 8.7

4.69 2004 4.69 9 2005 8.7 9 2006 10.39 9 2007 16.42 10 2008 13.81 10

Actual

Requirement

Figure 5: Capital Adequacy Position from 2004 to 2008

Growth in Deposit: Total deposit of Shahjalal Islami Bank stood at BDT 36484.24 million as on 31st December, 2008 as against BDT 22618.19 million of 31st December, 2007 registering an increase of BDT 13866.05 million, i.e. 61.31% growth. This was possible due to superior customer service delivery at the branch level, expansion of branch network to rural areas where foreign remittance flow is significant. The deposit mix of the bank as on 31st December, 2008 was as bellow:

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Table 3: Deposit Mix (31st December, 2008) Sl. No. 1 2 3 4 5 6 Nature of Deposit Al-Wadia Current Deposit Mudaraba Savings Deposit Mudaraba Short Notice Deposit Mudaraba Term Deposit Mudaraba Schemes Deposit Other Deposits Total
5% 4%

BDT in Million 1266.56 1863.52 765.11 21190.16 9426.65 1972.24 36484.24

Percentage of total Deposit 3.47% 5.11% 2.10% 58.08% 25.84% 5.40% 100.00%

Deposit Mix of 2008


5% 2%

26%

58%

Al-Wadia Current Deposit Mudaraba Term Deposit

Mudaraba Savings Deposit Mudaraba Schemes Deposit

Mudaraba Short Notice Deposit Other Deposits

Figure 6: Deposit Mix of 2008 Trend of Deposit from 2004 to 2008


40000 35000 36484.24

In Million BDT

30000 25000 20000 15000 10000 5000 0 2004 2005 2006 2007 2008 9091.66 12204.63 18090.65 22618.18

Figure 7: Trend of Deposit from 2004 to 2008

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Growth in Investment: Total investment of the bank stood at BDT 32918.77 million as on 31st December, 2008 as against BDT 20616.61 million of 31st December, 2007 registering an increase of BDT 12302.16 million, i.e. 59.67% growth. The bank is careful in deployment of the fund. Mode wise investments portfolio as on 31st December, 2008 is given below: Table 4: Investments Portfolio (31st December, 2008) Sl. Percentage of Nature of Investment BDT in Million No. total Deposit 1 Murabaha 7353.61 22.34% 2 Bi-muajjal 13224.94 40.17% 3 Hire-purchase & Ijara 5463.44 16.60% 4 Investments against LC 106.13 0.32% 5 Bill Purchased & Discounted 3721.76 11.31% 6 Investment against Scheme Deposits 557.61 1.69% 7 Quard 168.33 0.51% 8 Others 2322.95 7.06% Total 32918.77 100.00%

0.51% 1.69%
0.32% 11.31%

Investment Portfolio of 2008


7.06%

22.34%

16.60% 40.17%

Murabaha Hire-purchase & Ijara Bill Purchased & Discounted Quard

Bi-muajjal Investments against LC Investment against Scheme Deposits Others

Figure 8: Investment Portfolio of 2008

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Trend of Investment from 2004 to 2008


35000 30000 32918.77

25000
In Million BDT 20000 15000 10000 5000 0 2004 2005 2006 2007 2008 7148.68 10590.27 15515.79 20616.61

Figure 9: Trend of Investment from 2004 to 2008 Deposit & Investment Growth
40000 35000

30000
In Million BDT 25000 20000 15000 10000 5000 0 Deposit 2004 9091.66 7148.68 2005 12204.63 10590.27 2006 18090.65 15515.79 2007 22618.18 20616.61 2008 36484.24 32918.77

Investment

Figure 10: Deposit & Investment Growth

Growth in Operating Profit: As of 31st December, 2008; during the year the bank earned an amount of BDT 5285.39 million and spent an amount of BDT 3475.59 million, resulting a total operating profit of BDT 1809.80 million which increased by 494.79 million over last year. From the operating profit of BDT 145.00 million kept provision for investment, BDT 70.50 million provision kept for off-balance sheets, BDT 27.50 million provision kept for investment in securities, BDT 1.00 million provision kept for other assets and then profit before taxes stood total 1565.80 million and deducting income taxes of BDT 748.09 million, net profit after taxation stood at BDT 817.71 million. As appropriation of net profit BDT 313.16 million was Chapter 3: Organizational Profile Page | 16

transferred to statutory reserve as per Bank Company Act. 1991 and remaining BDT 504.55 million was transferred to retained earnings. A summary of operating result of the bank as on December, 2008 vis--vis the position of December, 2007 is shown below: Table 5: Operating results of the year 2008 & 2007 (Amount in million BDT) Particulars 2008 2007 Total Income 5285.39 3588.84 Less: Total Expenditure 3475.59 2273.83 Net Profit before Provision & Taxation 1809.80 1315.01 Less: Provisions 244.00 98.70 Net Profit before Taxation 1565.80 1216.31 Less: Provision for Taxation 748.09 569.32 Net Profit 817.71 646.99 Appropriation: Statutory Reserve 313.16 243.26 Retained Earnings 504.55 403.73
Operaring Results
6000 5000 In Million BDT 4000 3000 2000 1000 0 Income Expenditure& Loss Operating Profit 2006 2563.64 1718.57 845.07 2007 3588.84 2273.83 1315.01 2008 5285.39 3475.59 1809.8

Figure 11: Operating Results from 2006 to 2008

Growth in Branch Network: The bank has been operating with a network of 43 branches1 all over the country. In the year 2008 the bank has opened 7 (seven) new branches. And till now of 2009 it has already opened 10 (nine) branches. 6 (seven) more branches2 are going to be opened at 2009. 5 (five) more SME centers and 8 (eight) branches of brokerage house will soon be opened in Dhaka and other important business locations of our country.
1 2

See Appendix-A: Operating Branches of SJIBL See Appendix-B: Branches going to open in rest of the 2009

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60 50 40 30 20 10 0 2004 2005 12 16

Number of Branches
49 43 33 21 26

2006

2007

2008

2009

Projected no. of Branches

Opened no. of Branches

Figure 12: Number of Branches

Growth in Human Resources: The bank always laid emphasis on human resources and its development. The bank believes in the factor that the banks survival is closely interlinked with the quality of service and satisfaction of the client that directly depends on qualification and efficiency of the employees. With this objective in view, the bank excels the performance of its member of the staff by creating opportunities through providing proper training, rewards and recognition. To attract and retain qualified and efficient staff, the bank has formulated a number of well thought policies for the welfare of its employees, in the form of gratuity fund, social security fund, employees house building investment scheme, employees car financing scheme, benevolent fund & employees house furniture allowance, etc. Total number of manpower of the bank stood at 878 on 31st December, 2008 as against 555 of 31st December, 2007. Manpower Position
1000 900 Manpower Position 878

800
700 600 500 400 300 200 100 0 2004 2005 2006 2007 283 340 377

555

2008

Figure 13: Manpower Position from 2004 to 2008

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3.10. Corporate Social Responsibility (CSR) As an Islamic bank & body corporate, Shahjalal Islami Bank is quite conscious of its social responsibility. Having due regards to this the bank has already formed Shahjalal Islami Bank Foundation with the aim to serve humanity through different welfare activities giving emphasis on Health, Habitat & Education. Education: The banks foundation has planned to establish Shahjalal Islami Bank International School & College. It may further be mentioned here that the bank has declared permanent education award for the students who secure first, second & third place in MBA Examination with Islamic Economics and Banking as one of the subject under the department of Banking of the University of Dhaka. Besides, the bank has started its scheme of awarding Scholarship to poor but meritorious students with outstanding result in Secondary School Certificate (SSC) and Higher Secondary Certificate (HSC) Examinations for pursuing their higher studies on a regular basis. The bank is also offering investment scheme for education. Health: The Bank has a plan to establish Shahjalal Islami Bank Hospital. In various disasters like flood, tornado, etc. bank has come forward with relief for the affected people. Besides, for this purpose bank has donated BDT 4.0 million to Prime Ministers Relief Fund and has also donated BDT 2.0 million to Armys Relief Fund. Rural Development: Through the rural branches of the bank, Shahjalal Islami Bank Ltd. is conducting Rural Investment Program (RIP). Under this program the bank is giving loans in agro processing and in setting up agro-based industry in the rural area. The bank is providing more and more SME loans for generating more and more employment opportunity, ensuring higher income of people and high living standard. Shahjalal Islami Bank is offering various investment schemes which are very much appropriate for individuals, doctors, engineers, and other salaried people. More and more welfare activities and Institutional Development Programs are planned to be performed by the bank and its foundation in future in a view to serve the countrys people.

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3.11. Products 3.11.1. Deposit Accounts a. Al-Wadiah Current Deposit Accounts (ACD) Minimum amount for Current Deposit Account: Al-wadiah current deposit accounts shall be opened with a minimum of BDT 5,000/ which is also the minimum balance required to be maintained by the Account holder. Payment on Accounts demand: Funds in the Al-wadiah current deposit are payable on demand and the Bank guarantees repayment of such funds in full, less the bank charges, if any in accordance with normal banking traditions, during the banking hours. No Profit: No profit on Al-wadiah current deposit Account balances is allowed and the Bank at its own discretion uses the funds of Al-wadiah current deposit accounts without any risk to the account holder. b. Mudaraba Saving Deposit Accounts (MSD) Payment on Accounts demand: Funds in the mudaraba savings deposit are payable on demand and the bank guarantees repayment of such funds in full, less the bank charges, if any in accordance with normal banking traditions, during the banking hours. Rate of Profit: Mudaraba savings deposit accountholder get a specific rate of mark-up profit against their balance in that account. Now the profit rate is 4%. c. Mudaraba Short Notice Deposit Accounts (MSND): Period of Notice: o The deposits held in these accounts shall be payable on short notice period but the notice must not be less than 7 days. o The deposits may be accepted for the period and rates of profit are fixed by head office from time to time. Profit shall be paid only for each day held, but profit on notice period will be forfeited; if withdrawn without notice. Profit on MSND account shall be applied on yearly basis (i.e. December each year). d. Mudaraba Term Deposit Accounts (MTD) Amount & the Period of Mudaraba Term Deposit: o Mudaraba Term Deposit Account shall be opened for a fixed period varying from 90 days, 180 days, 360 days or above and are payable at a fixed date of maturity.

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o Mudaraba Term Deposit Accounts can be opened with a minimum deposit of BDT 2,000. Rate of Profit: Profit on Mudaraba Term Deposit Account shall be at rates fixed by Head office from time to time depending on their period of maturity. Deposit of Longer duration naturally earns higher return at higher weightage. Profit on Mudaraba Term Deposit Account shall be payable at maturity of the deposits. The customers will have the option of withdrawing profit accumulated at maturity or on half yearly basis or may leave the profit with the principal. Separate Contract: o Each time a Mudaraba Term Deposit Account is opened it shall be considered as a separate contract and various deposits in the name of the same depositor or in the name of the members of the same family shall not be treated as one deposit. o The depositors of this category also give their explicit consent in writing, through acceptance of rules, appearing on reverse of AOF, governing such deposit to the Bank to invest the same in any business it deems fit according to the principles of Islamic Shariah. Various Kinds of Accounts: Branches may open any of the following kinds of accounts under above types: Accounts of Individuals Joint Accounts Proprietary Concerns Partnership Concerns Accounts of Public Limited Companies/Corporations/ Autonomous bodies Accounts of Private Limited Companies Trust Accounts Accounts of Liquidators Accounts of Societies, Associations, Clubs Accounts of Local Authorities. etc.

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3.11.2. Deposit Schemes The name of the SJIBL deposit schemes are mentioned below: Mudaraba Monthly Income Scheme Mudaraba Double Money Scheme Mudaraba Monthly Deposit Scheme Mudaraba Millionaire Scheme Mudaraba Haji Deposit Scheme Mudaraba Housing Deposit Scheme Mudaraba Small Business Scheme Mudaraba Cash Waqf Deposit Scheme Mudaraba Lakhopoti Deposit Scheme Mudaraba Bibaho Deposit Scheme Mudaraba Mohor Deposit Scheme Mudaraba Sikhkha Deposit Scheme Mudaraba Special Term Deposit Scheme

3.11.3. Investment Schemes a. Small Business Investment Scheme Target groups: Small Businessmen like Wholesaler, Retailer, Small Manufacturer/Producer and Trader etc. Self-Employed Person like Doctors/Engineers/Professionals etc. Small & Cottage Industries. Other existing & new small business, micro & small industries and commerce. Mode of Investment: There are four modes of investment under small business investment scheme. These are: a. Hire Purchase under Shirkatul Meelk (HPSM) b. Lease/Ijara c. Bai-Muajjal-Commercial-TR d. Bai-Muajjal (Term) Ceiling of Investment: The amount of investment shall be BDT 50,000 to BDT 5,00,000 (BDT fifty thousand to BDT five lac). Maximum ceiling of the investment will be BDT 3,00,000 (BDT three lac) only for any region other than Dhaka & Chittagong Metropolitan Area. However, investment may be extended beyond the ceiling at the discretion of the Management. Bank investment-Client equity ratio where applicable shall be 60:40. Chapter 3: Organizational Profile Page | 22

Tenure of Investment In case of HPSM, Lease and Bai-Muajjal (Term): Maximum tenure will be 3 years i.e. 36 months (a period of 3 months may be allowed as grace period to the deserving client) In case of Bai-Muajjal-Commercial-TR: Maximum tenure will be 1 year i.e. 12 months and renewable on satisfactory performance. Rate of Profit/Rent: Rate of profit/rent is 15.00% p.a. Fees and Charge: Application fee of BDT 100 (non refundable) and processing fee of BDT 500 (non refundable). Supervision charge will be @ 2.00% per annum. Risk Fund: Risk fund will be @ 1.00% per annum. Security: Both general & specific securities are maintained. These are as follows General Security for each case o Hypothecation of Stock/Equipments o The stock/equipments should be duly and properly insured to cover the risks of probable hazards o 01 (one) post dated master cheque in favor of SJIBL covering the investment o Post dated cheque against each installment/ deal o Trust Receipt(s) duly executed by the Client along with delivery order(s) for each deal (in case of BMTR) o Personal guarantee of the client, spouse and adult son(s) & daughter(s), if any of the client Specific Security for the investment not exceeding BDT 2,00,000 : Personal guarantee from two persons having good financial means & standing and acceptable to the Bank Specific Security for the investment exceeding BDT 2,00,000 : Registered mortgage of immovable property owned by the client(s) or by a third party acceptable to the bank havingo Forced sale value of double the amount of investment under the BaiMuajjal-Commercial-TR facility o In case of HPSM, Lease and Bai-Muajjal (Term) investment, forced sale value of collateral security should not be less than 1.50 times of the Banks investment.

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b. Household Durables Investment Scheme Purpose Facilitate investment to purchase household durables to the different low & medium income honest businessman/professionals. Socio-economic improvement of the country through improvement of life style of the low & medium income people Target groups Government Organizations Semi-Government & Autonomous Organizations Different Corporations Multi-national Companies Different local renowned Non-governmental Organizations Different Banks and Financial Institutions (Including Shahjalal Islami Bank Ltd.) Different Insurance Companies Different renowned University, College, School & Madrasha besides Government University, College, School & Madrasha The persons serving in Military and Paramilitary Acceptable persons to the Bank's Management Genuine businessman having valid Trade license, VAT certificate, TIN certificate and Monthly Income evidenced by relevant documents may be included as client Note In case of service holder minimum service length requirement is 3 years which may be relaxed for the client having banking service In case of businessmen minimum business experience requirement is 5 years that may be relaxed on special consideration Ceiling of Investment Maximum ceiling of the investment will be BDT 5.00 lac per client Size of the investment will be fixed as such the monthly installment against the investment would not exceed 25% of clients monthly salary/income Basic Features Mode of Investment: Hire Purchase under Shirkatul Meelk / Hire Purchase. Period of Investment : Maximum 05 (five) years Client's Equity: Minimum 25%.

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Profit & Charges: Profit rate is 16% p.a. Service charge is 1.00% p.a. on approved limit to be realized upfront and risk fund is 1.00% to be realized at the time of disbursement. Repayment Procedure: Monthly instalment basis. Securities: o The ownership of the item(s) shall be in the name of the Bank o One post dated master cheque, covering the facility amount (with profit) o Post-dated cheques against each monthly installment o Personal guarantee from two persons having good financial means & standing and acceptable to the Bank c. Car Purchase Investment Scheme Maintaining a car now-a-days is no more a luxury, but an essential part of daily working life to add speed to its performance and taking this as view Shahjalal Islami Bank has introduced Car Purchase Investment Scheme. Brand new or reconditioned private car, microbus & jeep can be purchased under this scheme. Eligibility Age between 20 to 55 years Worthy businessman having trade license, VAT certificate and TIN Professionals like Physicians, Engineers, etc. Permanent employees ofo Govt., Semi Govt. and Autonomous Bodies o Banks and financial institutions o Senior teachers of University, Govt. School, College and Madrasha o Executives/Officers of Multinational Companies and renowned NGOs Ceiling: Maximum BDT 40.00 lac for brand new car and maximum BDT 30.00 lac for reconditioned car. Period: Maximum 5 years for brand new car and maximum 4 years for reconditioned car. Down payment: Minimum 10 % for brand new car and minimum 20 % for reconditioned car. Profit Rate: Most competitive in the market. Special Feature: Registration cost and comprehensive insurance cost can be included in the total cost. 1% rebate, if all the installments are paid in due time. d. CNG Conversion Investment CNG conversion of vehicle fuel system offers low fuel cost and save money. Shahjalal Islami Banks CNG conversion investment scheme offers loan while anyone needs money for this purpose.

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Eligibility Any permanent salaried executives of Corporate Houses, Renowned Private Companies, Banks, NBFI, Multi National Company(s), Renowned NGOs, Government Office, Semi-Government and Autonomous Bodies Self-employed persons like Doctors, Engineers, Charted Accountants, etc. Worthy businessman having trade license, VAT certificate and TIN Ceiling: BDT 40,000 to BDT 1,00,000. Period: Maximum 18 months. Profit Rate: Most competitive in the market. Special Feature: No down payment requires. e. Overseas Employment Investment Scheme Overseas employment investment scheme is for people who are keen to go abroad and wish to contribute our country by sending money in the form of remittance. This scheme ensures the cost of passage. Any Bangladeshi Citizen intends to go abroad with employment under genuine work permit Visa is considered as eligible person. The client who wants to avail this facility must maintain F/c Account with the bank till full adjustment of the facility. Besides no margin is required and partial adjustment or Full Pre-payment of liability at any time is allowed without any early settlement charge. Investment Amount: Maximum BDT3,00,000 Period: Maximum 36 months with 02 (two) months moratorium period Age: 18 years to 45 years Repayment Mode: Equal monthly installments Profit Rate: 14% per annum

f. Investment Scheme for Doctors To set up or renovate your Chamber, Clinic or Diagnostic Center with necessary medical Equipments or to purchase personal necessary medical Equipments this scheme is offered to the doctors. Bangladeshi salaried or a self employed Doctor having at least 2(two) years professional experience is considered as eligible person. Here partial adjustment or full pre-payment of liability at any time allowed without any early settlement charge. Investment Ceiling: Maximum BDT5,00,000 for general doctors and maximum BDT 1 0,00,000 for specialist doctors Period: Maximum 60 months Age: 25 to 60 years Repayment Mode: Equal monthly installments Profit Rate: The most competitive within doctors reach

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g. Investment Scheme for Executives Any Bangladeshi salaried executives of Corporate Houses, Banks, NBFI, Multi National Company(s), Government Office & Semi-Government Office can avail this facility. Under this scheme salary A/c & end service benefit will be under lien till full adjustment of the liability and partial adjustment or full pre-payment of liability at any time allowed without any early settlement charge. Investment Amount: Maximum BDT10,00,000 Period: Maximum 36 months Age: 22 years to 60 years Repayment Mode: Equal monthly installments Profit Rate: The most competitive within executives reach h. Investment Scheme for Marriage Any Bangladeshi salaried or a self employed person having 2 (Two) years professional experience can avail this facility. Partial adjustment or full pre-payment of liability at any time allowed without any early settlement charge. Investment Amount: Maximum BDT3,00,000 Period: Maximum 48 months Age: 25 years to 60 years Repayment Mode: Equal monthly installments Profit Rate: The most competitive within ones reach i. Investment Scheme for Education Any Bangladeshi credit worthy salaried or a self-employed person can avail this facility for their Children to pay the tuition fees, to pay the hostel fees, to meet travel expenses or to purchase computer, books etc. Student file must be maintained with Shahjalal Islami Bank Ltd. Partial adjustment or full pre-payment of liability at any time allowed without any early settlement charge. Investment Amount: In Bangladesh investment amount is maximum BDT 7,00,000 and in abroad investment amount is maximum BDT 15,00,000 Period: Maximum 60 months Margin: In Bangladesh 10% margin and in abroad 20% margin Repayment Mode: Equal monthly installments Profit Rate: 14% per annum j. Housing Investment Scheme To make housing facility easier to middle income group people of various professions Shahjalal Islami Bank has introduced this scheme. Any Bangladeshi person who is below 65 years of age who is an existing dependable client of the bank or engaged in

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one of the following professions will be considered as eligible person primarily for this scheme: Any martial employee performing job Full time teacher of college or university Related degree holder doctor, engineer & other established professionals Wage earners Regular employee of any government organization, semi-government organization, reputed private organization, multinational company, donor agency or well reputed public limited company. Investment Ceiling: Investment ceiling will be determined by considering the repayment power of the client, but this will not cross BDT 7.5 million. Period: From 1 year to 20 years. Profit Rate: Profit rate will be fixed by the bank and client will get 1% rebate for regular and timely payment of installment. Investment Mode: Higher purchase under Shirkatul Melk. Repayment Mode: By equal monthly installment. Securities/ Collateral: Building with land, apartment/ flat, other supportive securities that will provide help in granting investment.

k. SME Investment Products i. Prottasha for Small Enterprises: Shahjalal Islami Bank Limited (SJIBL) is firmly committed to implement and materialize the economic and financial principles of Islam in the Banking Arena. The very essence of Islamic mode of banking is to remove the disparity through establishing equity justice in trade, commerce and industry sector, creating opportunities for employment, boosting up income generation which ultimately helps alleviation of poverty from the society. Keeping the view and as an active contributor in the economic growth of Bangladesh, Shahjalal Islami Bank Ltd. has initiated SME Investment throughout the country. ii. Prottasha for Women Entrepreneur: It is well-known that women's empowerment and economic development go hand-in-hand. Now-a-days Women Entrepreneurs are receiving greater attention from policymakers and experts in developed and developing countries. In our country, Women Entrepreneurs are also encouraged to contribute to the national economy through establishing and expanding small & medium enterprises all over the country. Shahjalal Islami Bank Limited (SJIBL) is extending investment to Women Entrepreneurs for their business all over the country through its Small

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& Medium Enterprise (SME) Investment program on easy terms and conditions. Target group: For both above investment products target group is as follows: Small sized Trading, Manufacturing and Service oriented business Small Agro-based industries and non-firm business Purpose: To meet Working Capital requirements of an existing business To purchase fixed assets for an existing business except land and building Investment Ceiling: In case of Prottasha for Small Enterprises minimum investment ceiling is BDT 0.2 million and maximum ceiling is BDT 3.0 million. On the other hand in Prottasha for Women Entrepreneur minimum investment ceiling is BDT 0.2 million and maximum ceiling is BDT 1.5 million. Tenor: Minimum 12 months and maximum 36 months Repayment: By easy monthly installment Profit Rate: Most competitive in the market Security: Personal guarantee Collateral security (case to case)

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3.12. Services 3.12.1. Online Banking Services To provide better services to the valued customers using the latest technology and electronic media competing with other private banks to set and establish full automated, online, centralized banking systems interfacing (connecting software) with all delivery channels like: ATMs, POS, etc. Online banking/ any branch banking is a system where transactions, query and statements of any client of a branch may be carried out from another branch of the bank. 3.12.2. SJIBL VISA Card Services Card is considered as a new dimension of product resulting from technological development in the banking arena. In line with our affiliation with VISA International for VISA ATMs and POS, the following two products are launched broadening service products of the Bank to the clients: a. VISA Electron (SJIBL VISA Debit Card - local) b. VISA Prepaid (SJIBL VISA Prepaid Card) i. SJIBL VISA Prepaid (Prepaid Card Local) ii. SJIBL VISA Prepaid (Prepaid Card International) iii. SJIBL VISA Prepaid (Prepaid Card Dual) iv. SJIBL Souvenir Card (Gift Card Local) SJIBL VISA Debit Card: To a customer, "My card, my money" concept is used for Debit Card. Any accountholder of SJIBL can apply for a SJIBL VISA Debit Card against his/her Al-Wadiah Current Deposit (AWCD), Mudaraba Savings Deposit (MSD) or Mudaraba Short Notice Deposit (MSND) Account. He/she is fully authorized to enjoy the benefits of cash withdrawal from ATMs, liberty of shopping, dining, paying utility bills and having access account information through SMS, etc. round the clock. SJIBL VISA Prepaid Card (Local): SJIBL VISA Prepaid Local Cards are open to the customers even having no account with Shahjalal Islami Bank Limited. Cardholders can have the card against prepayment and have access from anywhere in Bangladesh. SJIBL VISA Prepaid Local Cards are accepted locally at all VISA labeled merchant outlets, ATMs, etc. SJIBL VISA Prepaid Card (International): SJIBL VISA Prepaid International Cards are also open to the customers even having no account with Shahjalal Islami Bank Limited. Cardholders can have the card endorsing US Dollar paying against Travel Quota, Exporters Retention Quota or marking Lien of his/her FC Account.

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SJIBL VISA Prepaid International Cards are accepted worldwide at all VISA labeled merchant outlets, ATMs, etc. SJIBL VISA Prepaid Card (Dual): SJIBL Souvenir Card is attractive and stylish product by its feature. Like a Gift Card, SJIBL Souvenir Card can be used by anyone wishes to. The intending customer may have the card instantly or may customize the card as required. The SJIBL Souvenir Cards are accepted locally at all VISA labeled merchant outlets, ATMs, etc. Features of SJIBL VISA Card: Features of SJIBL VISA Cards are as follows: 24/7 banking hour Directly linked to Cardholders Account at SJIBL (AWCD/MSD/MSND) Convenient Cash Withdrawal at ATMs Accepted at all VISA terminals locally & globally Local & International transactions with the same card (for Dual Cards) Balance Inquiry Mini Statement PIN Change No Cash Advance Fee at SJIBL ATMs 1 (one) free supplementary card Account is not required for Prepaid cards SMS Notification Service SJIBL VISA Card can be used at Q-Cash, DBBL, BRAC Bank and all VISA labeled ATMs in Bangladesh Shopping at a large number of Q-cash POS terminals around Bangladesh Payment of utility bills Has usage limit3 3.12.3. SMS/Push Pull Services This automated SMS/Push Pull can be reached 24 hours a day, 7 days a week. The following services and information clients can get through SMS/Push Pull Service of SJIBL: Balance inquiry Cheque book requisition Cheque leaf status FC Rate information
3

See Appendix C

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Cheque stop payment instruction Statement request by courier/ post Statement request by E-mail Last three transactions statement Help Inquiry PIN change

3.12.4. Foreign Remittance Services 3.12.4.1. Western Union: Western Union Financial Services Inc. U.S.A. is the number one and reliable money transfer company in the world. This modern Electronic Technology based money transfer company has earned worldwide reputation in transferring money from one country to another country within the shortest possible time. It has over 3,45,000 agent locations across 200 countries and territories. Shahjalal Islami Bank Limited has set up a Representation Agreement with Western Union Financial Services Inc. U.S.A. Millions of people have confidence on Western Union for sending money to their friends and family. Through Western Union Money Transfer Service, Bangladeshi Wage Earners can send money quickly from over 3,45,000 Western Union Agent Locations in over 200 countries and territories worldwide- the worlds largest network of its kind, only by visiting any branches of Shahjalal Islami Bank Limited in Bangladesh. Western Union money transfer is reliable because each transfer can be tracked electronically and money can be received within a minute of sending from the foreign country just by filling a simple form. No bank account is required. Only MTCN is needed. 3.12.4.2. Kushiara: Kushiara Money Transfers a definition of safety and reliability and a popular Money Transfer Company in United Kingdom (U.K.). It has 200 agent locations all over UK. Kushiara offers Instant Cash next day collection from Bank counter at most cities in Bangladesh and "Quick Credit" to beneficiarys account in all over the Bangladesh. Transfer of money is processed after the remittance request and the bank posts the customers copy of the remittance form to customers given address after the fund are cleared. The usual times for clearing of cheques require 3-5 working days. The Remittance Form can be downloaded from the website: www.kushiara.net.

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Proof of name & address of remitter is required in case of transaction over equivalent Euro 1000 under the Government anti money laundering regulations. All transactions are authorized under the money laundering regulation. Kushiara has all necessary licenses to carry out the financial service business it offers. 3.12.4.3. SWIFT: Shahjalal Islami Bank Limited is a member of the Society for Worldwide Inter Bank Financial Telecommunication (in abbreviation S.W.I.F.T.) SWIFT is the industry-owned cooperative supplying secure, standardized messaging services and interface software to nearly 8,300 financial institutions in 208 countries and territories. SWIFT members include banks, brokerdealers and investment managers. The broader SWIFT community also encompasses corporate as well as market infrastructures in payments, securities, treasury and trade. SJIBL SWIFT codes are given at Appendix D. 3.12.5. Capital Market Services Shahjalal Islami Bank commenced its Brokerage House operation in the year 2008 through a separate division named Capital Market Service Division (CMSD). CMSD provides BO Account facility and margin facility to its customers to invest in the secondary markets. Diversified products with different category of investment ceiling and other value added services are also available for customers. The customers were also provided with assisted services facilities on the basis of published information and accounts. The division managed portfolio value of more than 833 million under margin accounts. As a result, profitability of CMSD shown significant positive trend during 2008. Divisional contribution was 2.21% percent to total operating profit before Provision and taxes of the Bank. The Bank has established a well decorated and highly technology based trading facilities for the connivance of the customers. 3.12.6. SME Services Shahjalal Islami Bank Ltd. provides small & medium enterprises SME services through its eight SME service centers. These are as follows: Kamal Bazar SME Service Center, Chittagong Shafipur SME Service Center, Gazipur Jatrabari SME Service Center, Dhaka Elephant Road SME Service Center, Dhaka Mirpur-1 SME Service Center, Dhaka Islampur SME Service Center New Eskaton SME Service Center, Dhaka Shariatpur SME Service Center, Shariatpur Page | 33

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3.12.7. Other Services Shahjalal Islami Bank Ltd. also serves customers by colleting bills & charges through all of its branches. Grameenphone subscribers can to pay their bills, advances, security deposit and other related charges through all branches of Shahjalal Islami Bank Limited. Electricity bill is also collected throughout the branches of Shahjalal Islami Bank Ltd. 3.13. Performance of the Bank (Ratings) 3.13.1. Credit Rating Credit rating of the bank was performed by Credit Rating and Information Services Limited (CRISL). In their report (Report: RR/253/09) of April 2009, they rated the bank as AA- (double A minus) for long term and ST-2 for short term. The gradation in long term rating has been done in consideration of its good capital adequacy, appropriate asset quality, increased non-funded business and sound liquidity position. The short term rating indicates high certainty of timely repayments of financial obligations. Risk factors are very small. The long term rating is valid for only one year and the short term rating is for six months. CRISL also viewed the bank with Stable Outlook in consideration of its overall performance, improvement in asset quality, growth in investment and deposits. The capital adequacy of SJIBL stood at 13.81% at the end of FY 2008 against regulatory requirement of 10%. The asset quality of the bank has improved and at the end of FY2008 non-performing asset stood at only 0.44%. During FY 2008, the deposit mobilization had significant growth of 61.30% and stood at BDT 36,484.24 million. This augmented investment growth by 59.67% as well as asset growth by 59.51% in FY 2008. The equity growth during FY 2008 was 29.33%, supported by after-tax profit growth of 26.39%. The financial performance of the bank was good and almost stable in FY 2008 compared to previous years performance. During FY 2008, the bank has shown outstanding growth in non-funded business; doing better in all area of export, import and inward remittance. SJIBL has been maintaining satisfactory liquidity and its short term and long term liabilities (up to five years) are also backed by adequate volume of assets. The bank maintained a surplus amount of provisions against its non-performing investment (NPI), to cover risk in future. The NPI coverage ratio stood at 325.06% at the end of FY 2008.

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Table 6: Credit Rating Result from 2006 to 2008 Long Term Short Term Surveillance Rating-2008 AAST-2 Surveillance Rating-2007 A+ ST-2 Surveillance Rating-2006 A ST-2 Outlook Stable Date of Rating Declaration April 25, 2009

Figure 14: Long Term Credit Rating of SJIBL from 2006 to 2008

Figure 15: Short Term Credit Rating of SJIBL from 2006 to 2008

3.13.2. CAMELS Rating Central bank, the regulatory authority of countrys banking sector rate the positions of different banks based on their performances using the CAMELS rating system which is a supervisory rating of the bank's overall condition. There are six components of a bank's condition that are assessed under this system: capital adequacy, asset quality, management, earnings, liquidity and sensitivity to market risk. So, the CAMELS rating gives an overall view to a banks performance. CAMELS rating published this year based on the performance of the banks during 2008 rates Shahjalal Islami Bank Ltd. as Strong or A-class Bank. Last year also this bank was rates as Strong or A-class Bank. This shows that Shahjalal Islami Bank Ltd. is performing consistently well.

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Chapter 4: Assessing Customer Satisfaction of SJIBL 4.1. Literature Review Superior service quality is widely acknowledged as a driver of perceived value, which, in turn, will enhance customer loyalty (Parasuraman and Grewal, 2000) and improve the providers image, sales and profitability (Buzzell and Gale, 1987; Gummesson, 1993). Because satisfaction is basically a psychological state, care should be taken in the effort of quantitative measurement, although a large quantity of research in this area has recently been developed. Work done by Berry, Brodeur between 1990 and 1998 defined ten 'Quality Values' which influence satisfaction behavior, further expanded by Berry in 2002 and known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Interdepartmental Teamwork, Front line Service Behaviors, Commitment to the Customer and Innovation. These factors are emphasized for continuous improvement and organizational change measurement and are most often utilized to develop the architecture for satisfaction measurement as an integrated model. Work done by Parasuraman, Zeithaml and Berry between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature. Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation. According to Garbrand, customer satisfaction equals perception of performance divided by expectation of performance. 4.1.1. Definition of Customer The word derives from "custom," meaning "habit"; a customer was someone who frequented a particular shop, who made it a habit to purchase goods of the sort the shop sold there rather than elsewhere, and with whom the shopkeeper had to maintain a relationship to keep his or her "custom," meaning expected purchases in the future. A customer, also called client, buyer, or purchaser, is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services.

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The word customer has neither been defined by the Negotiable Instrument nor by any other law. So, in the field of banking it is not cleared yet. According to Paget the following characteristics will be present: a. There must be recognizable course or habit of dealing between the customer and a bank. b. Dealing between him and the bank must be in the nature of regular banking business. The Kerala high court in the case of Central Bank of India Limited, Bombay vs. Gopinathan Nair and others (1970) said, Broadly speaking, a customer is a person who has the habit of resorting to the same place or person to do business so far as the banking transactions are concerned. He is a person whose money has been accepted on the footing that the banker will honour his cheques up to the amount standing to his credit irrespective of his connection being of short or long standing In this study the customer means those persons who have at least one active account of any kind at Shahjalal Islami Bank Limited (Keraniganj Branch). 4.1.2. Definition of Satisfaction Satisfaction is the contentment one feels when one has fulfilled a desire, need, or expectation; "the chef tasted the sauce with great satisfaction". Here in the study customers agreement (agree & strongly agree) with the surveys statements will indicate their satisfaction. 4.1.3. Definition of Customer Satisfaction Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy In this study customer satisfaction will be treated as at well level if it has CSI score of 4 or more when overall weighted satisfaction will be measured. 4.1.4. Why to Measure Customer Satisfaction With the phenomenal increase in the country's population and the increased demand for banking services; speed, service quality and customer satisfaction are going to be key differentiators for each bank's future success. Thus it is imperative for banks to get useful feedback on their actual response time and customer service quality aspects

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of retail banking, which in turn will help them take positive steps to maintain a competitive edge. Organizations are increasingly interested in retaining existing customers while targeting non-customers; measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Lord William Thomson Kelvin (1824-1907) said, "If you cannot measure it, you cannot improve it." So to improve customer satisfaction level, measurement of customer satisfaction is must. Satisfied customers are central to optimal performance and financial returns. In many places in the world, business organizations have been elevating the role of the customer to that of a key stakeholder over the past twenty years. Customers are viewed as a group whose satisfaction with the enterprise must be incorporated in strategic planning efforts. Forward-looking companies are finding value in directly measuring and tracking customer satisfaction (CS) as an important strategic success indicator. Evidence is mounting that placing a high priority on CS is critical to improved organizational performance in a global marketplace. With better understanding of customers' perceptions, companies can determine the actions required to meet the customers' needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company. When buyers are powerful, the health and strength of the company's relationship with its customers its most critical economic asset is its best predictor of the future. Assets on the balance sheet basically assets of production are good predictors only when buyers are weak. So it is no wonder that the relationship between those assets and future income is becoming more and more tenuous. As buyers become empowered, sellers have no choice but to adapt. Focusing on competition has its place, but with buyer power on the rise, it is more important to pay attention to the customer. Requirement of ISO 9000:2000 Measurement of Customer Satisfaction is a new significant addition to the new ISO9000: 2000 standard. Organizations certified to this standard are now required to identify parameters that cause customer satisfaction or dissatisfaction and consciously measure them.

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Clause 8.2.1 in ISO 9000: 2000 states: "As one of the measurements of the performance of the Quality Management System, the organizations shall monitor information relating to customer perception as to whether the organization has met customer requirements. The methods for obtaining and using this information shall be determined." The requirement has been there in the QS 9000 standard clause 4.1.6 which says: "... Trends in customer satisfaction and key indicators of customer dissatisfaction shall be documented and supported by objective information. These trends shall be compared to those of competitors, or appropriate benchmarks, and reviewed by senior management." 4.2. Process used in Assessing Customer Satisfaction Level of SJIBL (Keraniganj Branch) 4.2.1. The Customer Satisfaction Measurement Model There are various models that are used in measuring the level of customers satisfaction4. I have calculated the Customer Satisfaction Index (CSI). Because, it looks pretty smarter as it shows the satisfaction level as one number and this measure model considers various parameters and this is easy to calculate. The Customer Satisfaction Index represents the overall satisfaction level of that customer as one number, usually as a percentage. Plotting this Satisfaction Index of the customer against a time scale shows exactly how well the supplier is accomplishing the task of customer satisfaction over a period of time. 4.2.2. The Questionnaire/ Instrument I have followed the process of face to face interview in measuring the customers satisfaction level. Because, it was convenient for me as I have passed much time at the bank during my internee program. The information collection was performed by using RATER or SERVQUAL Instrument. In the mid eighties, Parasuraman, Zeithaml and Berry (1988, 1991) conducted extensive studies in different industries and developed the SERVQUAL instrument: a 22-item scale with a set of service quality dimensions to quantify a customers assessment of a companys service quality. Five key dimensions of service quality reliability, responsiveness, assurance, empathy and tangibles have been identified and form the foundation on which a lot of other studies on service quality have been built. By the early nineties the authors had refined the model to the useful acronym RATER.
4

See Appendix E

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SERVQUAL is widely recognized and used, and it is regarded as applicable to a number of industries, including the banking industry (Yavas, Bilgin, Shemuell, 1997). Nyeck, Morales, Ladhari, and Pons (2002) stated the SERVQUAL measuring tool remains the most complete attempt to conceptualize and measure service quality (p. 101). The main benefit to the SERVQUAL measuring tool is the ability of researchers to examine numerous service industries such as healthcare, banking, financial services, and education (Nyeck, Morales, Ladhari, & Pons, 2002). The SERVQUAL instrument has been the predominant method used to measure consumers perceptions of service quality. It has five generic dimensions or factors of service quality that are stated as follows (Van Iwaarden et al., 2003): a. Reliability: Ability to perform the promised service dependably and accurately; b. Assurance (including competence, courtesy, credibility and security): Knowledge and courtesy of employees and their ability to inspire trust and confidence; c. Tangibles: Physical facilities, equipment and appearance of personnel; d. Empathy (including access, communication, understanding the customer): Caring and Individualized attention that the firm provides to its customers; e. Responsiveness: Willingness to help customers and provide prompt service. Using this RATER/SERVQUAL instrument 5 I have collected customers degree of agreement with 22 different statements categorized under 5 major dimensions. These five dimensions indicate various influencing forces in satisfying customers. The parameters covered by this RATER/ SERVQUAL instrument are as follows: a. Reliability: Act according to Promises Sincere Interest in Problem Solving Performs the Service Right the First Time Provides Services at the Time Promised Insists on Error Free Records b. Assurance: Employees Behavior Instill Confidence in Customers Customers Feel Safe in Transaction Consistent Courtesy of Employees Employees have the Knowledge to Answer Customers' Question
5

See Appendix F

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c. Tangibles: Modern Looking Equipments Visually Appealing Physical Facilities Neat Appearance of Employees Appealing Appearance of Materials d. Empathy: Gives Customers Individual Attention Has Convenient Operating Hours for Customers Has Employees to Give Customers Personal Attention Has Best Interest of Customers at Heart Employees Understand Specific Needs of Customers e. Responsiveness: Informs exactly when Services will be provided Gives Prompt Services Employees are Always Willing to Help Never too Busy to Respond Customer Requests 4.2.3. The Rating Scale Customers responses have been recorded by using 5 point Likert Scale or Technique where the customer were asked to evaluate each statement to rate their degree of agreements or disagreements with each of 22 statements. These degrees of agreements or disagreements were plotted on the 5 point Likert Scale where point 1 indicates Strongly Disagree and point 5 indicates Strongly Agree with the statement.

Figure 16: Example of a 5 Point Likert Rating Scale

4.2.4. The Cut-Off Score Some people told that half way point in a marathon is 22 miles. But, the fact is marathon is a race of 26.2 miles. The point was that it requires as much energy to run the last 4.2 miles as it does the first 22. The same principle holds in the marathon race of customer satisfaction. The half way point is not a mean score of 50%. Improving the mean score beyond 80% takes as much energy as it does to get to 80% and incremental points of improvement are hard to achieve. Some researchers prefer to concentrate on the top box responses those scores of 4 or 5 out of 5 the excellent or very good ratings. It is argued that these are the

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scores that are required to create genuine satisfaction and loyalty. In their book The Service Profit Chain, Heskett, Sasser and Schlesinger argue that a rating of 9 or 10 out of 10 is required on most of the key issues that drive the buying decision. If suppliers fail to achieve such high ratings, customers show indifference and will shop elsewhere. Capricious consumers are at risk of being wooed by competitors, readily switching suppliers in the search for higher standards. The concept of the zone of loyalty, zone of indifference and zone of defection as suggested by the three Harvard professors is illustrated below in diagram:

Figure 17: Satisfaction Score & Loyalty, Indifference, Defection Zone

So, I am considering the 80% point 4 out of 5 as the cut off score in measuring customer satisfaction. That is if the average score is 4.0 or more then the customers will be treated as satisfied. 4.2.5. The Gap Score Gap score is the difference between the Expectation and Perception. It indicates the reality gap from interviewers (my) perception. Expectation: This part deals with my opinion on the bank. Under this the extent to which I think the bank should posses for the following features are shown. What I am interested in here is a number that best shows my expectations about the Shahjalal Islami Bank Ltd. (Keraniganj branch). Perception: This indicates the respondents response on the statements taken under the SERVQUAL instrument.

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4.3. Findings & Analysis 50 customers were surveyed as sample (from the population size of almost two thousand) under the study to measure the satisfaction level of the customers of Shahjalal Islami Bank Limited (Keraniganj Branch). The demographic information of samples is as follows: Table 7: Samples Frequency Distribution based on Gender Sl. No. Gender Frequency Percentage Cumulative Percentage 1. Male 46 92% 92% 2. Female 04 8% 100% n=50

Gender
8%
Male Female

92%

Figure 18: Gender Ratio among Samples

Table 8: Samples Frequency Distribution based on Age Sl. No. Age Group Frequency Percentage 1. 18-25 Years 5 10% 2. 26-33 Years 18 36% 3. 34-50 Years 25 50% 4. 51 & Above 2 4% n=50

Cumulative Percentage 10% 46% 96% 100%

Age Group
4% 10% 36%

50%

18-25 Years

26-33 Years

34-50 Years

50+ Years

Figure 19: Samples Age Clusters

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Table 9: Samples Frequency Distribution based on Profession Sl. No. Age Group Frequency Percentage Cumulative Percentage 1. Business 37 74% 74% 2. Service 9 18% 92% 3. Student 1 2% 94% 4. Housewife 3 6% 100% n=50

2% 18%

Profession
6%
Business

74%

Service Student Housewife

Figure 20: Sample Ratio based on Profession

Here the gap among various clusters of the samples is wide. The reason behind this was convenient selection of samples. The survey was conducted in between 18th of October, 2009 to 3rd of November, 2009. So, the samples are selected only from those customers who came to the bank within the stated time period.

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Statement 1: When SJIBL promises to do something by a certain time, it does so. Explanation: The above statement denotes the degree of keeping promises by the bank with a certain period of time. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 10: Survey result of the statement 1 (Act according to Promises) Degree of Perception Strongly Disagree Disagree Neutral Agree Strongly Agree Frequ- Percentage of Cumulative ency Frequency Percentage 0 0 8 17 25 n=50
30 25 20 15 10 5 0 0 Strongly Disagree 0 Disagree Neutral Agree Strongly Agree 8 17

Mean

Mode

Std. Dev.

0% 0% 16% 34% 50%

0% 0% 16% 50% 100% 4.34 5 0.745

25

Figure 21: Respondents' response on acting of employees according to promise

Interpretation of the Result: From the above result it is seen that the mean value is 4.34. That means customers are satisfied with the performance against the promises made by SJIBL. The mode value (5) represents that most of the respondents are strongly agree with the above statement. So, on this point of fulfilling promises customers are seemed to be satisfied. Result on Likert Scale:

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Statement 2: When you have a problem, SJIBL shows a sincere interest in solving it. Explanation: The above statement refers to the degree of sincerity of the bank concerning the interest in solving the problems of customers. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 11: Survey result of the statement 2 (Sincere Interest in Problem Solving) Degree of Perception Strongly Disagree Disagree Neutral Agree Strongly Agree Frequ- Percentage of Cumulative ency Frequency Percentage 0 0 6 23 21 n=50
25 20 15 10 5 0 0 Strongly Disagree 0 Disagree Neutral Agree Strongly Agree 6 23 21

Mean

Mode

Std. Dev.

0% 0% 12% 46% 42%

0% 0% 12% 58% 100% 4.30 4 0.678

Figure 22: Respondents' response on employees sincere interest in Problem Solving

Interpretation of the Result: From the above result it is seen that the mean value is 4.30. That means customers are satisfied with the banks sincerity in solving their personal problem. The mode value (4) represents that most of the respondents are agree with the above statement. So, on this point of banks sincerity in problem solving the customers are seemed to be satisfied. Result on Likert Scale:

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Statement 3: SJIBL performs the service right at the first time. Explanation: The above statement means the degree of performing service correctly by the bank at the first time it performs for an individual. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 12: Survey result of the statement 3 (Performs the Service Right the First Time) Degree of Perception Strongly Disagree Disagree Neutral Agree Strongly Agree Frequ- Percentage of Cumulative ency Frequency Percentage 0 3 7 17 23 n=50
25 20 15 10 5 0 3 0 Strongly Disagree Disagree Neutral Agree Strongly Agree 7 23

Mean

Mode

Std. Dev.

0% 6% 14% 34% 46%

0% 6% 20% 54% 100% 4.20 5 0.904

17

Figure 23: Respondents' response on having service right at the first time

Interpretation of the Result: From the above result it is seen that the mean value is 4.20. That means customers are satisfied and feel that the services performed by the bank for them are right at the first time. The mode value (5) represents that most of the respondents are strongly agree with the above statement. So, on this point of performing service right at the first time customers are seemed to be satisfied. Result on Likert Scale:

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Statement 4: SJIBL provides its service at the time it promises to do so. Explanation: The above statement refers to the degree of delivering Just In Time (JIT) service by the bank according to its promise. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 13: Survey result of the statement 4 (Provides Services at the Time Promised) Degree of Frequ- Percentage of Cumulative Std. Mean Mode Perception ency Frequency Percentage Dev. Strongly 0 0% 0% Disagree Disagree 0 0% 0% Neutral 8 16% 16% 4.26 4 0.723 Agree 21 42% 58% Strongly 21 42% 100% Agree n=50
25 20 15 10 5 0 0 Strongly Disagree 0 Disagree Neutral Agree Strongly Agree 21 21

Figure 24: Respondents' response on having services by the promised time

Interpretation of the Result: From the above result it is seen that the mean value is 4.26. That means customers are satisfied with provided services by the promised. The mode value (4) represents that most of the respondents are agree with the above statement. So, on this point of providing service by the promised time the customers are seemed to be satisfied. Result on Likert Scale:

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Statement 5: SJIBL insists on error free records. Explanation: The above statement means the degree of maintaining and providing error free records of transactions and other banking documents by the bank. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 14: Survey result of the statement 5 (Insists on Error Free Records) Degree of Frequ- Percentage of Cumulative Mean Mode Perception ency Frequency Percentage Strongly 0 0% 0% Disagree Disagree 0 0% 0% Neutral 5 10% 10% 4.38 5 Agree 21 42% 52% Strongly 24 48% 100% Agree n=50
30 25 20 15 10 5 5 0 Strongly Disagree 0 Disagree Neutral Agree Strongly Agree 24

Std. Dev.

0.667

21

Figure 25: Respondents' response on insistence of error free record

Interpretation of the Result: From the above result it is seen that the mean value is 4.38. That means customers are satisfied with the error free record made and provided by SJIBL. The mode value (5) represents that most of the respondents are strongly agree with the above statement. So, on this point of fulfilling promises customers are seemed to be satisfied. Result on Likert Scale:

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Statement 6: The behavior of employees in SJIBL instills confidence in you. Explanation: The above statement depicts the increase in the level of confidence of the customers due to the behaviour of the employees of the bank. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 15: Survey result of the statement 6 (Employees Behavior Instills Confidence in Customers) Degree of Frequ- Percentage of Cumulative Std. Mean Mode Perception ency Frequency Percentage Dev. Strongly 0 0% 0% Disagree Disagree 0 0% 0% Neutral 15 30% 30% 3.86 4 0.670 Agree 27 54% 84% Strongly 8 16% 100% Agree n=50
30

25
20 15 10 5 0 0 0 Neutral 15

27

Strongly Disagree Disagree

Agree

Strongly Agree

Figure 26: Respondents' response on employees behavior in instilling confidence in customers

Interpretation of the Result: From the above result it is seen that the mean value is 3.86 that means customers are not at proper satisfied level with the employees behaviour in instilling confidence in them. The mode value (4) represents that most of the respondents are agree with the above statement though the mean is indicating a lower value. So, on this point of employees behaviour in installing confidence in customers the clients are appeared to be laid on a less-satisfied zone which is below the acceptable point. Result on Likert Scale:

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Statement 7: You feel safe in your transactions with SJIBL. Explanation: The above statement means the degree of safety that the customer feels by maintaining account and transacting with the bank. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 16: Survey result of the statement 7 (Customers Feel Safe in Transaction) Degree of Frequ- Percentage of Cumulative Std. Mean Mode Perception ency Frequency Percentage Dev. Strongly 0 0% 0% Disagree Disagree 0 0% 0% Neutral 1 2% 2% 4.54 5 0.542 Agree 21 42% 44% Strongly 28 56% 100% Agree n=50
30 25 20 15 10 5 0 0 Strongly Disagree 0 Disagree 1 Neutral Agree Strongly Agree 21 28

Figure 27: Respondents' response on feeling safe in transactions

Interpretation of the Result: From the above result it is seen that the mean value is 4.54 that means customers are well satisfied through maintaining transactions with the bank. The mode value (5) represents that most of the respondents are strongly agree with the above statement though the mean is indicating a lower value. So, on this point of customers feel safe in transactions with the bank the clients are appeared to be well satisfied. Result on Likert Scale:

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Statement 8: Employees of SJIBL are consistently courteous with you. Explanation: The above statement means the degree that the customers are satisfied with the courteous behaviour of the employees. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 17: Survey result of the statement 8 (Consistent Courtesy of Employees) Degree of Frequ- Percentage of Cumulative Std. Mean Mode Perception ency Frequency Percentage Dev. Strongly 0 0% 0% Disagree Disagree 0 0% 0% Neutral 1 2% 2% 4.50 5 0.544 Agree 23 46% 48% Strongly 26 52% 100% Agree n=50
30 25 20 15 10 5 0 0 Strongly Disagree 0 Disagree 1 Neutral Agree Strongly Agree 23 26

Figure 28: Respondents' response on consistent courtesy of employees

Interpretation of the Result: From the above result it is seen that the mean value is 4.50 that means customers are well satisfied with good manner of the employees of the bank. The mode value (5) represents that most of the respondents are strongly agree with the above statement. So, on this point of consistent courtesy of employees of the bank the clients are appeared to be well satisfied. Result on Likert Scale:

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Statement 9: Employees of SJIBL have the knowledge to answer your questions. Explanation: The above statement means the degree of knowhow that the employees of SJIBL possess to answer the customers query correctly. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 18: Survey result of the statement 9 (Employees have the Knowledge to Answer Customers' Question) Degree of Frequ- Percentage of Cumulative Std. Mean Mode Perception ency Frequency Percentage Dev. Strongly 0 0% 0% Disagree Disagree 0 0% 0% Neutral 13 26% 26% 4.08 4 0.778 Agree 20 40% 66% Strongly 17 34% 100% Agree n=50
25 20 15 13 20 17

10
5 0 0 Strongly Disagree 0 Disagree Neutral Agree Strongly Agree

Figure 29: Respondents' response based on employees knowledge

Interpretation of the Result: From the above result it is seen that the mean value is 4.08 that means customers are satisfied with employees when they ask them questions. The mode value (4) represents that most of the respondents are agree with the above statement. So, on this point of employees knowledge to answer customers query the clients are appeared to be satisfied. Result on Likert Scale:

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Statement 10: SJIBL has modern looking equipment. Explanation: The above statement means the degree that SJIBLs Keraniganj Branch has modern looking equipments. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 19: Survey result of the statement 10 (Modern Looking Equipments) Degree of Frequ- Percentage of Cumulative Mean Mode Perception ency Frequency Percentage Strongly 0 0% 0% Disagree Disagree 0 0% 0% Neutral 2 4% 4% 4.66 5 Agree 13 26% 30% Strongly 35 70% 100% Agree n=50
40 35 30 25 20 15 10 5 0 35

Std. Dev.

0.557

13 2 Neutral Agree Strongly Agree

0 Strongly Disagree

0 Disagree

Figure 30: Respondents' response on modern looking equipment

Interpretation of the Result: From the above result it is seen that the mean value is 4.66 that means customers are well satisfied with the modern looking equipments of the bank. The mode value (5) represents that most of the respondents are strongly agree with the above statement. So, on this point of having modern looking equipments the clients are appeared to be satisfied enough. Result on Likert Scale:

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Statement 11: SJIBLs physical facilities are visually appealing. Explanation: The above statement means the degree that SJIBLs Keraniganj Branch has appealing physical facilities. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 20: Survey result of the statement 11 (Visually Appealing Physical Facilities) Degree of Frequ- Percentage of Cumulative Std. Mean Mode Perception ency Frequency Percentage Dev. Strongly 0 0% 0% Disagree Disagree 0 0% 0% Neutral 0 0% 0% 4.72 5 0.454 Agree 14 28% 28% Strongly 36 72% 100% Agree n=50
40 35 30 25 20 15 10 5 0 36

14

0 Strongly Disagree

0 Disagree

0 Neutral Agree Strongly Agree

Figure 31: Respondents' response on visually appealing physical facility

Interpretation of the Result: From the above result it is seen that the mean value is 4.72 that means customers are well satisfied with the visually appealing physical facility of the bank. The mode value (5) represents that most of the respondents are strongly agree with the above statement. So, on this point of the clients are appeared to be satisfied enough. Result on Likert Scale:

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Statement 12: SJIBLs employees are neat appearing. Explanation: The above statement means the degree that SJIBLs Keraniganj Branch has employees who are neat in appearance. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 21: Survey result of the statement 12 (Neat Appearance of Employees) Degree of Frequ- Percentage of Cumulative Std. Mean Mode Perception ency Frequency Percentage Dev. Strongly 0 0% 0% Disagree Disagree 0 0% 0% Neutral 3 6% 6% 4.58 5 0.609 Agree 15 30% 36% Strongly 32 64% 100% Agree n=50
35 30 25 20 15 10 5 0 0 Strongly Disagree 0 Disagree Neutral Agree Strongly Agree 15 32

Figure 32: Respondents' response on neat appearance of employees

Interpretation of the Result: From the above result it is seen that the mean value is 4.58 that means customers are well satisfied with the neat appearance of the employees of the bank. The mode value (5) represents that most of the respondents are strongly agree with the above statement. So, on this point of neat appearance of employees the clients are appeared to be satisfied enough. Result on Likert Scale:

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Statement 13: Materials associated with the service (such as pamphlets or statements) are visually appealing at SJIBL. Explanation: The above statement means the degree that SJIBLs Keraniganj Branch has employees who are neat appearing. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 22: Survey result of the statement 13 (Appealing Appearance of Materials) Degree of Frequ- Percentage of Cumulative Std. Mean Mode Perception ency Frequency Percentage Dev. Strongly 0 0% 0% Disagree Disagree 0 0% 0% Neutral 7 14% 14% 4.36 5 0.722 Agree 18 36% 50% Strongly 25 50% 100% Agree n=50
30 25 20 15 10 5 0 0 Strongly Disagree 0 Disagree Neutral Agree Strongly Agree 7 18 25

Figure 33: Respondents' response on appealing appearance of materials

Interpretation of the Result: From the above result it is seen that the mean value is 4.36 that means customers are well satisfied with the appealing appearance materials that are associated with the service of the bank. The mode value (5) represents that most of the respondents are strongly agree with the above statement. So, on this point of appealing appearance of materials the clients are appeared to be satisfied enough. Result on Likert Scale:

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Statement 14: SJIBL gives you individual attention. Explanation: The above statement means the degree of attention that the employees of SJIBL pay to their customers. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 23: Survey result of the statement 14 (Gives Customers Individual Attention) Degree of Frequ- Percentage of Cumulative Std. Mean Mode Perception ency Frequency Percentage Dev. Strongly 0 0% 0% Disagree Disagree 0 0% 0% Neutral 18 36% 36% 3.84 4 0.738 Agree 22 44% 80% Strongly 10 20% 100% Agree n=50
25 22 18 10

20
15 10 5 0 0 Strongly Disagree 0 Disagree

Neutral

Agree

Strongly Agree

Figure 34: Respondents' response on getting individual attention

Interpretation of the Result: From the above result it is seen that the mean value is 3.84 that means customers are not satisfied enough with the individual attention that they got from the employees of SJIBL. The mode value (4) represents that most of the respondents are agree with the above statement. So, on this point of getting individual attention the clients are not properly satisfied. Result on Likert Scale:

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Statement 15: SJIBL has operating hours convenient to all its customers. Explanation: The above statement means the degree how the working hour of the bank suits the customers. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 24: Survey result of the statement 15 (Has Convenient Operating Hours for Customers) Degree of Frequ- Percentage of Cumulative Std. Mean Mode Perception ency Frequency Percentage Dev. Strongly 1 2% 2% Disagree Disagree 2 4% 6% Neutral 7 14% 20% 4.06 4 0.913 Agree 23 46% 66% Strongly 17 34% 100% Agree n=50
25 20 15 23 17

10
5 0 Strongly Disagree Disagree 1 2

Neutral

Agree

Strongly Agree

Figure 35: Respondents' response on operating hour of the bank

Interpretation of the Result: From the above result it is seen that the mean value is 4.06 that means customers have touched the satisfaction level regarding the banking hour. But this is not too high. The mode value (4) represents that most of the respondents are agree with the above statement or they are satisfied with banking hours. So, on this point the clients are appeared to be satisfied. Result on Likert Scale:

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Statement 16: SJIBL has employees who give you personal attention. Explanation: The above statement means the degree of having SJIBL employees who personally pay attention to their clients. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 25: Survey result of the statement 16 (Has Employees to Give Customers Personal Attention) Degree of Frequ- Percentage of Cumulative Std. Mean Mode Perception ency Frequency Percentage Dev. Strongly 1 2% 2% Disagree Disagree 2 4% 6% Neutral 19 38% 44% 3.70 3 0.931 Agree 17 34% 78% Strongly 11 22% 100% Agree n=50
20 18 16 14 12 10 8 6 4 2 0 19 17 11

1 Strongly Disagree

2 Disagree Neutral Agree Strongly Agree

Figure 36: Respondents' response on having personal attention providing employees

Interpretation of the Result: From the above result it is seen that the mean value is 3.70 that means customers do not touch the satisfaction level regarding the banking hour. But this is not too high. The mode value (3) represents that most of the respondents are in a neutral position; they neither agree nor disagree with the statement. Result on Likert Scale:

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Statement 17: SJIBL has your best interest at heart. Explanation: he above statement means the degree of conviction of the clients that SJIBL employees thinks about the best interest of the customers. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 26: Survey result of the statement 17 (Has Best Interest of Customers at Heart) Degree of Frequ- Percentage of Cumulative Std. Mean Mode Perception ency Frequency Percentage Dev. Strongly 0 0% 0% Disagree Disagree 0 0% 0% Neutral 3 6% 6% 4.50 5 0.614 Agree 19 38% 44% Strongly 28 56% 100% Agree n=50
30 25 20 15 10 5 0 19 28

3
0 Strongly Disagree 0 Disagree Neutral Agree Strongly Agree

Figure 37: Respondents' response on having best interest of customers to employees heart

Interpretation of the Result: From the above result it is seen that the mean value is 4.50 that means customers are well satisfied believing that SJIBL employees think for the best interest of the customers by their heart. The mode value (5) represents that most of the respondents are strongly agree with the above statement. Result on Likert Scale:

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Statement 18: The employees of SJIBL understand your specific needs. Explanation: The above statement means the degree of understanding the varying needs for each customer by the SJIBL employees. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 27: Survey result of the statement 18 (Employees Understand Specific Needs of Customers) Degree of Frequ- Percentage of Cumulative Std. Mean Mode Perception ency Frequency Percentage Dev. Strongly 0 0% 0% Disagree Disagree 5 10% 10% Neutral 19 38% 48% 3.50 4 0.789 Agree 22 44% 92% Strongly 4 8% 100% Agree n=50
25 20 15 10 5 0 0 Strongly Disagree Disagree Neutral Agree Strongly Agree 5 4 19 22

Figure 38: Respondents' response on understanding of specific needs of them by the employees

Interpretation of the Result: From the above result it is seen that the mean value is 3.50 that means customers are not satisfied enough with the banks employees understanding of the specific needs of the individual clients. Though the mode value (4) represents that most of the respondents are agree with the above statement, the average is below the mode value. Result on Likert Scale:

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Statement 19: Employees in SJIBL tell you exactly when services will be performed. Explanation: T he above statement means the degree of information provided by the SJIBL employees to the clients about the time accuracy specifically when the service will be provided to them. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 28: Survey result of the statement 19 (Informs exactly when Services will be provided) Degree of Frequ- Percentage of Cumulative Std. Mean Mode Perception ency Frequency Percentage Dev. Strongly 2 4% 4% Disagree Disagree 4 8% 12% Neutral 21 42% 54% 3.40 3 0.926 Agree 18 36% 90% Strongly 5 10% 100% Agree n=50
25 20 15 10 5 0 Strongly Disagree Disagree Neutral Agree Strongly Agree 2 4 5 21 18

Figure 39: Respondents' response on getting information of exactly when service will be given

Interpretation of the Result: From the above result it is seen that the mean value is 3.40 that means customers are not satisfied enough with the banks employees provided information about the exact time when service will be provided. It does not touch the satisfactory level. The mode value (3) represents that most of the respondents are in a neutral position with the above statement. Result on Likert Scale:

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Statement 20: Employees in SJIBL give you prompt service. Explanation: The above statement means the degree of immediate service given by the employees of SJIBL. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 29: Survey result of the statement 20 (Gives Prompt Services) Degree of Frequ- Percentage of Cumulative Mean Mode Perception ency Frequency Percentage Strongly 2 4% 4% Disagree Disagree 6 12% 16% Neutral 23 46% 62% 3.26 3 Agree 15 30% 92% Strongly 4 8% 100% Agree n=50
25 20 15 10 15 23

Std. Dev.

0.922

5
0

6
2 Strongly Disagree Disagree Neutral Agree

Strongly Agree

Figure 40: Respondents' response on getting prompt service

Interpretation of the Result: From the above result it is seen that the mean value is 3.26 that means customers do not think that the service offered or provided by the employees are instant. The mode value (3) represents that most of the respondents are in a neutral position with the above statement which does not reach to a satisfactory level. Result on Likert Scale:

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Statement 21: Employees in SJIBL are always willing to help you. Explanation: The above statement means the degree of willingness of the employees of SJIBL to help the customers. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 30: Survey result of the statement 21 (Employees are Always Willing to Help) Degree of Frequ- Percentage of Cumulative Std. Mean Mode Perception ency Frequency Percentage Dev. Strongly 0 0% 0% Disagree Disagree 0 0% 0% Neutral 2 4% 4% 4.52 5 0.580 Agree 20 40% 44% Strongly 28 56% 100% Agree n=50
30 25 20 15 10 5 0 0 Strongly Disagree 0 Disagree 2 Neutral Agree Strongly Agree 20 28

Figure 41: Respondents' response on employees willingness to help

Interpretation of the Result: From the above result it is seen that the mean value is 4.52 that means the customers are much satisfied with the willingness of the SJIBL employees to help them. The mode value (5) indicates that most of the respondents are strongly agree with the above statement and are very much satisfied with the willingness of the employees to help them. Result on Likert Scale:

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Statement 22: Employees in SJIBL are never too busy to respond to your request. Explanation: The above statement refers to the level of employee business with tasks while responding to customer request. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 31: Survey result of the statement 22 (Never too Busy to Respond Customer Requests) Degree of Frequ- Percentage of Cumulative Std. Mean Mode Perception ency Frequency Percentage Dev. Strongly 2 4% 4% Disagree Disagree 5 10% 14% Neutral 20 40% 54% 3.32 4 0.868 Agree 21 42% 96% Strongly 2 4% 100% Agree n=50
25 20 15 10 5 0 Strongly Disagree Disagree Neutral Agree Strongly Agree 5 20

21

Figure 42: Respondents' response on business of employees while to respond customers

Interpretation of the Result: From the above result it is seen that the mean value is 3.32 that indicates that customers neither think that employees are too busy to respond nor too free to respond. The mode value (4) represents that most of the respondents are agreed with the above statement that is employees are never too busy to respond them. Result on Likert Scale:

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4.3.1. Calculation of Average SERVQUAL Scores for Each of 5 (five) SERVQUAL Dimensions Table 32: Average Reliability SERVQUAL score Factors under Reliability Dimension Gap Score= Customers ExpectationExpectation Perception Perception (Average) (Average) 0.66 0.70 0.80 4.296 -0.26 -0.38 0.304 Average Reliability SERVQUAL score

Act according to 5 4.34 Promises Sincere Interest in 5 4.30 Problem Solving Performs the Service Right the 5 4.20 First Time Provides Services at the Time 4 4.26 Promised Insists on Error 4 4.38 Free Records Average Reliability Gap Score Table 33: Average Assurance SERVQUAL score Factors under Assurance Dimension Expectation Customers Perception (Average)

Gap Score= Average ExpectationAssurance Perception SERVQUAL score (Average) 0.14 0.46 0.50 4.245

Employees Behavior Instills 4 3.86 Confidence in Customers Customers Feel 5 4.54 Safe in Transaction Consistent Courtesy of 5 4.50 Employees Employees have the Knowledge to 5 4.08 Answer Customers' Question Average Assurance Gap Score

0.92 0.505

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Table 34: Average Tangibles SERVQUAL score Factors under Tangibles Dimension Customers Expectation Perception (Average) Gap Score= ExpectationPerception (Average) 0.34 0.28 0.42 0.64 0.42 4.58 Average Tangibles SERVQUAL score

Modern Looking 5 4.66 Equipments Visually Appealing 5 4.72 Physical Facilities Neat Appearance 5 4.58 of Employees Appealing Appearance of 5 4.36 Materials Average Tangibles Gap Score Table 35: Average Empathy SERVQUAL score Factors under Empathy Dimension Customers Expectation Perception (Average)

Gap Score= ExpectationPerception (Average) 1.16 0.94 0.30

Average Empathy SERVQUAL score

Gives Customers Individual 5 3.84 Attention Has Convenient Operating Hours 5 4.06 for Customers Has Employees to Give Customers 4 3.70 Personal Attention Has Best Interest of Customers at 5 4.50 Heart Employees Understand 4 3.50 Specific Needs of Customers Average Empathy Gap Score

3.92 0.50

0.50 0.68

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Table 36: Average Responsiveness SERVQUAL score Gap Score= Factors under Customers ExpectationResponsiveness Expectation Perception Perception Dimension (Average) (Average) Informs exactly when Services 4 3.40 0.60 will be provided Gives Prompt 4 3.26 0.74 Services Employees are Always Willing to 5 4.52 0.48 Help Never too Busy to Respond 4 3.32 0.68 Customer Requests Average Responsiveness Gap Score 0.625 4.3.2. Calculation of Unweighted SERVQUAL Score

Average Responsiveness SERVQUAL score

3.625

Table 37: Calculations to obtain unweighted SERVQUAL Score Average Unweighted SERVQUAL Parameters Average Score SERVQUAL Score Reliability 4.296 Assurance 4.245 Tangibles 4.58 4.1332 Empathy 3.92 Responsiveness 3.625 4.3.3. Calculation of Weighted SERVQUAL Score/ Customer Satisfaction Index (CSI) Table 38: Calculations to obtain Customer Satisfaction Index (CSI) Weighting SERVQUAL Average Weighting Weighting (avg. of 1) * Parameters Score (avg. of 1) Average Score Reliability 4 4.296 1.08401084 4.656910569 Assurance 3.5 4.245 0.948509485 4.026422764 Tangibles 3 4.58 0.81300813 3.723577236 Empathy 3.7 3.92 1.002710027 3.930623306 Responsiveness 4.25 3.625 1.151761518 4.175135501 Average Average Average=1 CSI=4.102533875 =3.69 =4.1332 Chapter 4: Assessing Customer Satisfaction of SJIBL Page | 69

Chapter 5: Conclusion 5.1. Ending Summary 5.1.1. Quantitative Findings The quantitative findings that are found by analyzing the customers response through SERVQUAL instrument are as follows: a. Ability of employees to perform promised service dependently & accurately: According to customers response, performance of all the dimensions listed under Reliability head (acting according to promises, sincerity in problem solving, performing the service right at the first time, providing service at the promised time & insistence on error free record) are quite satisfactory and the overall SERVQUAL score in this area is 4.296 (Table 32). So, the employees are able to perform promised services dependently and accurately. b. Assurance of competency, courtesy, credibility & security: From customers point of view, employees behaviour does not instil enough confidence in customers. All other dimensions listed under Assurance head (safe felling in transactions, consistent good courtesy of employees & having decent knowledge of employees in answering customers queries) are quite satisfactory. Though one dimension is not satisfactory but the satisfactory position of all other dimensions under Assurance head leads this to a satisfactory position and the overall SERVQUAL score is 4.245 (Table 33). So, on average the customers are assured enough by competence, courtesy, credibility and security of the employees and the bank. c. Tangible appearances in satisfying customers: Customers of the bank are well satisfied with all types of tangible appearances (equipments, materials, physical facilities & employees) inside the bank. Average Tangibles SERVQUAL score of 4.58 (Table 34) backs up the above statement. d. Performance in personal care, understanding customers & offered banking hour: The survey result proved that the bank is offering its customers convenient banking hours and the employees have the best interest of customers in their heart. Beside these two satisfactory points there are some unsatisfactory items also. On average customers think that they are not getting proper individual attention, there is lacking of employees who will give them personal attention and employees do not understand their personal needs. These disappointing factors are forming average Empathy score to 3.92 (Table 35). e. Response & willingness of employees in providing service: The study shows that the employees are always willing to help customers but there are

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lacking in providing prompt services, informing exactly when service will be actually provided and responding customers when the employees have works in hand. These negative points are shaping the average Responsiveness SERVQUAL score to 3.625 (Table 36) and indicating an overall dissatisfactory standing in this area. f. Overall level of customer satisfaction: The overall unweighted SERVQUAL score is 4.133 (Table 37) which is indicating a satisfactory stage in the level of customer satisfaction. The weighted SERVQUAL score or the Customer Satisfaction Index (CSI) is 4.103 (Table 38). This figure also is indicating an acceptable level of customer satisfaction. So, from the quantitative analysis it is found that although in some dimensions customers are not properly satisfied, the overall result is pointing to a satisfactory level of customers satisfaction at Shahjalal Islami Bank Limited, Keraniganj Branch. There are some points where it needs to improve performance to increase the level of customer satisfaction. These are- providing customers individual attention, understanding special needs of customers, providing information exactly when service will be provided, providing quick service, response timely to customers, etc. 5.1.2. Qualitative Findings The key informants believe that the customers can be made more satisfied by providing them quick service. They also think that most of the customers deal with lower level officers of General Banking & SME department. Customers of the bank are increasing day by day. It will not be possible to serve customers then as they serve today. To make provide them prompt service without creating any queue more employees are needed under General Banking department. This will help them to carry on every day time consuming works like voucher sorting properly and thus there will be no pending works. They also believe that a better core banking software (a replacement of PCBank 2000) will help them to deal with their works more accurately. These will save their valuable time and thus they will be able to offer this extra saved time to the customers to meet their wants timely.

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5.2. Recommendations It is very difficult for me to recommend with a practical experience of just almost 3 months. On the basis of interviews, study and observation I would like to recommend the following points: a. Maintenance of Time Slots for Each Customer to Serve: While employees deal with customers they can maintain standard time or time slots for each customer they handle and for each work they do. This consciousness will help to perform works quickly and to serve more customers. b. Setup Electronic Calling Machine for Cash Counter: Most of the time there is a rush in the cash counter. To manage proper queue and to manage this rush properly setting up of Electronic Calling Machine can be effective. c. Setting up of Query Desk/ Information Booth/ Reception Booth: A conventional query desk or reception booth or information booth can serve customers who make a phone or come at banks for simple query and this can reduce customers rush to the officers table. d. Appointment of more Employees under General Banking Department: More appointed employees can simplify the works of general banking and can serve the customers well. This will also help to ensure no work pending and no customer unserved. Appointment of more employees under this department will also reduce the workload of existing employees and will help to improve their morale. e. Appoint more students under internship program: Students appointed under internship program can help in many day to day simple works like account opening, voucher sorting, mail management, providing information to customers, etc. It is also advantageous because it costs a little no comparing to full time appointed employees. f. Replacement of Core Banking Software: PCBank 2000, the core banking software should be replaced. Because, there are softwares which are faster, stronger, more secure and more user friendly. Better up-to-date software will help employees to deal with customers and their works quickly and effectively. g. Employee Training Workshops: Employees should be trained by arranging workshops time to time. Because this can release them from monotony, increase their knowledge and morale. h. Appointing Female Employees: To understand the female customers specific needs woman employees can be effective and a separate desk for women can improve the Islamic image of the bank and will secure the motto committed to cordial service. Chapter 5: Conclusion Page | 72

Developing a customer satisfaction programme is not just about carrying out a survey. Surveys provide the reading that shows where attention is required but in many respects, this is the easy part. Very often, major long lasting improvements need a fundamental transformation in the organization, probably involving training of the staff, possibly involving cultural change. The result should be financially beneficial with less customer churn, higher market shares, premium prices, stronger brands and reputation, and happier staff. However, there is a price to pay for these improvements. Costs will be incurred in the research surveys are made. Time will be spent working out an action plan and in implementation of development process. Training may well be required to improve the customer service. The implications of customer satisfaction surveys go far beyond the survey itself and will only be successful if fully supported by the echelons of senior management.

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Banks Documents Annual Report 2008 Brochures Credit Report: Report: RR/253/09 Statement of Affairs, Dated: 12/11/2009 Training Sheets Books Debnath, R.M. (2004). Business of Banking (1st ed.). Dhaka. Lotus Publishers, ISBN 984-32-1093-9. Lesikar & Pettit (2003). Documentation and the Bibliography. Business Communication (6th ed.). Delhi. A.I.T.B.S. Publisher & Distributors. 706-715. ISBN 81-85386-05-6. Robert Sabatino Lopez, Irving Woodworth Raymond, Olivia Remie Constable (2001). Medieval Trade in the Mediterranean World: Illustrative Documents. Columbia University Press, ISBN 0231123574. Said Amir Arjomand (1999). "The Law, Agency, and Policy in Medieval Islamic Society: Development of the Institutions of Learning from the Tenth to the Fifteenth Century". Comparative Studies in Society and History. Cambridge University Press. 26393. Zeithaml, Parasuraman & Berry. (1990). Delivering Quality Service; Balancing Customer Perceptions and Expectations. Free Press. Journals Amin, Samir (1978). The Arab Nation: Some Conclusions and Problems. MERIP Reports 68, 314. Angur, M.G., Nataraajan, R., Jaheera, J.S. Jr. (1999). Service quality in the banking industry: an assessment in a developing economy. International Journal of Bank Marketing. 13(3). 116-123. Appended Part Page | 74

Avkiran, N.K. (1994). Developing an instrument to measure customer service quality in branch banking. International Journal of Bank Marketing. 12(6). 10-18. Babakus, E., Boller, G.W. (1992). An empirical assessment of the SERVQUAL scale. Journal of Business Research. 24(2). 253-68. Banaji, Jairus (2007), "Islam, the Mediterranean and capitalism". Historical Materialism 15 (1): 4774, Brill Publishers. the rise of

Buttle, Francis (1996). SERVQUAL: review, critique, research agenda. European Journal of Marketing. 30(1), 8-31. Dawes, John (2008). Do Data Characteristics Change According to the number of scale points used? An experiment using 5-point, 7-point and 10-point scales. International Journal of Market Research. 50 (1), 61-77. Likert, Rensis (1932). "A Technique for the Measurement of Attitudes". Archives of Psychology. 140: 155. Nyeck, S., Morales, M., Ladhari, R., & Pons, F. (2002). 10 years of service quality measurement: reviewing the use of the SERVQUAL instrument. Cuadernos de Difusion. 7(13), 101-107. Parasuraman, A., Zeithaml, V.A., Berry, L.L. (1988). SERVQUAL: a multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing. 64(1). 12-40. Subhi Y. Labib (1969), Capitalism in Medieval Islam, The Journal of Economic History. 29 (1), 79-96 The Cambridge economic history of Europe. Cambridge University Press. 437. ISBN 0521087090. Timur Kuran (2005), The Absence of the Corporation in Islamic Law: Origins and Persistence, American Journal of Comparative Law. 53, 785834 [7989] Yavas, U., Bilgin, Z., Shemwell, D.J. (1997). Service quality in the banking sector in an emerging economy: a consumer survey. International Journal of Bank Marketing. 15(6). 217-23. Zeithaml, V.A., Berry, L.L., Parasuraman, A. (1993). The nature and determinants of customer expectations of service. Journal of Academy of Marketing Science. 21(1). 1-12.

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Websites & Internet Documents American Psychological Association. (2001). Publication manual of the American Psychological Association (5th ed.). Washington DC: APA. from http://www.apastyle.org/elecref.html http://en.wikipedia.org/ http://www.b2binternational.com/library/whitepapers/pdf/customer_satisfaction _ surveys.pdf http://www.grin.com/e-book/4860/superior-service-quality-can-be-a-successfactor http://www.imf.org/external/pubs/ft/wp/2008/wp0816.pdf, Islamic Banks and Financial Stability: An Empirical Analysis pg. 5 http://www.indianmba.com/Faculty_Column/FC329/fc328.html http://www.kushiara.net/ http://www.shahjalalbank.com.bd http://www.swift.com/about_swift/company_information/index.page?lang=en http://www.symphonytech.com/articles/pdfs/satisfaction.pdf http://www.usc.edu/dept/MSA/economics/islamic_banking.html http://www.westernunion.com/global_organization.html Lorenzo Totaro (2009-03-04). Vatican Says Islamic Finance May Help Western Banks in Crisis. Bloomberg.

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Appendix
Appendix A: Operating Branches of SJIBL 1. 2. 3. 4. 5. 6. 7. 8. 9. Dhaka Main Branch, Dhaka Mitford Branch, Dhaka Dhanmondi Branch, Dhaka Khatunganj Branch, Chittagong Agrabad Branch, Chittagong Gulshan Branch, Dhaka Beani Bazar Branch, Sylhet Sylhet Branch, Sylhet Foreign Exchange Branch, Dhaka 10. Joydevpur Chowrasta Branch, Gajipur 11. Kawran Bazar Branch, Dhaka 12. Dargagate Branch, Sylhet 13. Uttara Branch, Dhaka 14. Bangshal Branch, Dhaka 15. Baipail (Dhaka EPZ) Branch, Dhaka 16. Narayanganj Branch, Narayanganj 17. Satmasjid Road Branch, Dhaka 18. Banani Branch, Dhaka 19. Moulvi Bazar Branch, Moulvibazar 20. Joypara Branch, Dhaka 21. Jubilee Road Branch, Chittagong 22. Motijheel Branch, Dhaka 23. Mirpur Branch, Dhaka 24. Khulna Branch, Khulna 25. Saver Branch, Dhaka 26. Muradpur Branch, Chittagong 27. Bijoynagar Branch, Dhaka 28. Saidpur Branch, Nilphamari 29. Vatara Branch, Dhaka 30. Keraniganj Branch, Dhaka 31. Jassore Branch, Jessore 32. Rajshahi Branch, Rajshahi 33. Mymensing Branch, Mymensing 34. Panthapath Branch, Dhaka 35. College Gate Branch, Dhaka 36. Baruakhali Branch, Nowabgonj 37. Madhobdi Branch, Narsinghdi 38. Ashkona Branch, Dhaka 39. Bogra Branch, Bogra 40. Naogaon Branch, Naogaon 41. Goalabazar Branch, Sylhet 42. Comilla Branch, Comilla 43. Khepupara Branch, Patuakhali

Appendix B: Branches going to open in rest of the 2009 1. 2. 3. 4. 5. 6. Borishal Branch, Borishal Chawkbazar Branch, Chittagong Kaliganj Branch, Jhinaidaha Najirhat Branch, Chittagong Ramganj Branch, Laxmipur Sokhipur Branch, Tangail

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Appendix C: SJIBL VISA Card Usage Limit Table 39: Debit Card Usage Limit Description Cash withdrawal limit (total) Cash withdrawal limit (amount) Balance checking PIN change Invalid PIN retry count Card usage limit in ATMs (total) Appendix D: SJIBL SWIFT Codes Table 40: SWIFT Codes Sl. No. BIC Code 01 SJBLBDD1JUB 02 03 04 05 06 07 08 09 10 11 12 13 14 15 SJBLBDD1KWR SJBLBDD1NGJ SJBLBDD1OBU Branch Name Jubilee Road Kawran Bazar Branch Narayanganj Branch Offshore Banking Unit City Heading Chittagong Dhaka Dhaka Dhaka Chittagong Dhaka Dhaka Dhaka Dhaka Dhaka Chittagong Dhaka Sylhet Dhaka Dhaka Transaction Limit 4 times per day Tk. 30,000 per day (up to Tk. 50,000 per day on request) 4 times per day 2 times per day 3 times per day 10 times per day

SJBLBDDHAGB Agrabad Branch SJBLBDDHBNG Bangshal Branch SJBLBDDHDHN Dhanmondi Branch SJBLBDDHDMB Dhaka Main Branch SJBLBDDHFEX SJBLBDDHGUL SJBLBDDHKTG SJBLBDDHMFB SJBLBDDHSYL SJBLBDDHUTR SJBLBDDHXXX Foreign Exchange Branch Gulshan Branch Khatunganj Branch Mitford Branch Sylhet Branch Uttara Branch Head Office

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Appendix E: Models used in Measurement of Customer Satisfaction a. The KANO Model: The customer satisfaction model developed by N. Kano is a quality management and marketing technique that can be used for measuring client happiness. Kano's model of customer satisfaction distinguishes six categories of quality attributes (Basic Factors, Excitement Factors, Performance Factors, Indifferent attributes, Questionable attributes & Reverse attributes) are considered of which the first three actually influence customer satisfaction. KENO used questionnaire to measure this quality attributes. b. The Service Profit-Chain Model: The service profit chain model of business performance (Heskett, Sasser, & Schlesinger, 1997) has identified customer satisfaction as a critical intervening variable in this relationship. Stated simply, the service profit chain asserts that satisfied and motivated employees produce satisfied customers and satisfied customers tend to purchase more, increasing the revenue and profits of the organization. Heskett et al. (1997), for example, define the service profit chain as 'involving direct and strong relationships between profit; growth; customer loyalty; customer satisfaction; the value of goods and services delivered to customers; and employee capability, satisfaction, loyalty and productivity.' c. The Service Expectation Model: According to this model customer satisfaction with a service/product (p/s) can be measured through a survey of the actual perception of the users or otherwise comparing their actual perception with their expectations. More appropriately in the first case "quality" is considered, in the second "customer satisfaction" (Cronin et al.1992, 1994). d. Variability in the Service Process Model (Wharton): Four factors represent major explanations for the existence of process variation in services: heterogeneous customers with different service expectations; lack of rigorous policies and processes; high employee turnover; and nature of customization. e. The Common Measurements Tool (CMT): CMT is the result of an extensive study by researchers at the Canadian Centre for Management Development and others, which examined a number of approaches to standardizing measurement of customer satisfaction with public services. The model they have developed provides a useful example of how elements of different approaches can be combined to improve our understanding of satisfaction and highlight priorities for improvement. It incorporates five main questioning approaches, measuring: i. Expectations of a number of service factors; ii. Perceptions of the service experience on these factors; iii. Level of importance attached to each of a number of service elements;

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iv. Level of satisfaction with these elements; v. Respondents' own priorities for improvement. f. The Customer Satisfaction Index (CSI): The Customer Satisfaction Index represents the overall satisfaction level of that customer as one number, usually as a percentage. Plotting this Satisfaction Index of the customer against a time scale shows exactly how well the supplier is accomplishing the task of customer satisfaction over a period of time. Since the survey feedback comes from many respondents in one organization, the bias due to individual perception needs to be accounted for. This can be achieved by calculating the Satisfaction Index using an importance weighting based on an average of 1. Calculate the average of all the weightings given by the customer. Divide the individual weightings by this average to arrive at the weighting on the basis of average of 1. Customer's higher priorities are weighted more than 1 and lower priorities less than 1. The averages of the Customers Importance Scores are calculated and each individual score is expressed as a factor of that average. Thus Customer Satisfaction can be expressed as a single number that tells the supplier where he stands today and an Improvement plan can be chalked out to further improve his performance so as to get a loyal customer. Appendix F: Survey Form (Questionnaire) See at next page.

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Survey Form Please show the extent to which you believe SJIBL has the feature described in the statement. Write number that best shows your perceptions.
[Strongly Disagree] 1 2 1. When SJIBL promises to do something by a certain time, it does so. [ ] 2. When you have a problem, SJIBL shows a sincere interest in solving it. [ ] 3. SJIBL performs the service right at the first time. [ ] 4. SJIBL provides its service at the time it promises to do so. [ ] 5. SJIBL insists on error free records. [ ] 6. The behavior of employees in SJIBL instills confidence in you. [ ] 7. You feel safe in your transactions with SJIBL. [ ] 3 4 [Strongly Agree] 5

12. SJIBLs employees are neat appearing. [ ] 13. Materials associated with the service (such as pamphlets or statements) are visually appealing at SJIBL. [ ] 14. SJIBL gives you individual attention. [ ] 15. SJIBL has operating hours convenient to all its customers. [ ] 16. SJIBL has employees who give you personal attention. [ ] 17. SJIBL has your best interest at heart. [ ] 18. The employees of SJIBL understand your specific needs.

8. Employees of SJIBL are consistently courteous with you. [ ] 9. Employees of SJIBL have the knowledge to answer your questions. [ ] 10. SJIBL has modern looking equipment. [ ] 11. SJIBLs physical facilities are visually appealing. [ ]

[ ]

19. Employees in SJIBL tell you exactly when services will be performed. [ ] 20. Employees in SJIBL give you prompt service. [ ] 21. Employees in SJIBL are always willing to help you. [ ] 22. Employees in SJIBL are never too busy to respond to your request. [ ]

Age Group: [18-25] [26-33] [34-50] [51 & above] Gender: [Male] [Female] Profession: [Business] [Service] [Student] [Housewife] Date:

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