Report On Deposit System of The City Bank

Course Title: Course Code & No: FIN-405Semester: Summer 14Tuesday, August 12, 2014

Group Name :- Inception

Submitted by

No.

Name ID Batch Section

1 Md. Monjurull Mannan M21011111154 21st B2345

Submitted toNusrat Jahan

Department of Business AdministrationUttara University

School of Business

Acknowledgement

We would like to express our gratefulness to our honorable course teacher Nusrat for allowing us to work under his supervision. We are none to do this without his directions and also thanks for his valuable guidance and suggestion. He has helped us a lot from proposal selection to final submission and his guidance was most valuable for preparing this report. We have tried our best to accomplish the task within desired period. We have got all sorts of help from our friends.

All of them obliged us by providing the valuable and most confidential data of their respective organization.

No. Table Of content Page

Executive Summary

City Bank Ltd. is one of the first generation private Commercial Banks in Bangladesh, which has started its operations on 27th March, 1983, in Dhaka City. The bank currently has 84 online branches and 5 SME centers spread across the length & breadth of the country that include a fully fledged Islami Banking branch. Besides these traditional delivery points, the bank is also very active in the alternative delivery area. It currently has 35 ATMs of its own; and ATM sharing arrangement with a partner bank that has 225 ATMs in place; SMS Banking; Interest Banking and so on. Soon its Customer Call Center is going to start operation. The bank has a plan to end the current year with 50 own ATMs.City Bank is the first bank in Bangladesh to have issued Dual Currency Credit Card. The bank is a principal member of VISA international and it issues both Local Currency (Taka) & Foreign Currency (US Dollar) card limits in a single plastic. VISA Debit Card is another popular product which the bank is pushing hard in order to ease out the queues at the branch created by its astounding base of some 400,000 retail customers. The launch of VISA Prepaid Card for the travel sector is currently underway.A couple of years ago, CBL took an ambitious objective of becoming the number one private commercial bank in Bangladesh. In order to achieve this goal, CBL is going through a massive restructuring process. In its 25th Anniversary, CBL has come up with a new dynamic brand logo and tagline. The company is expanding very fast with the recruitment and training of highly potential employees, automation of the daily operations and improvisation of its service quality policies.

Chapter-1

Introduction: City Bank Ltd. is one of the first generation private Commercial Banks in Bangladesh, which has started its operations on 27th March, 1983, in Dhaka City. The bank currently has 83 online branches all around the country, including one full fledged Islami Banking branch. A couple of years ago, CBL took an ambitious objective of becoming the number one private commercial bank in Bangladesh. In order to achieve this goal, CBL is still going through a massive restructuring process and emphasizing a lot in its service quality level.This internship project solely focuses on the service quality of CBL. This project has tried to assess the new service policies of CBL by surveying its customers and also tried to find out whether its new policies are creating any positive impact in the mind of the consumers.

Background of the Organization: City Bank Ltd. is one of the first generation private Commercial Banks in Bangladesh, which has started its operations on 27th March, 1983, in Dhaka City.City Bank is the first bank in Bangladesh to have issued Dual Currency Credit Card. The bank is a principal member of VISA international and it issues both Local Currency (Taka) & Foreign Currency (US Dollar) card limits in a single plastic. VISA Debit Card is another popular product which the bank is pushing hard in order to ease out the queues at the branch created by its astounding base of some 400,000 retail customers. The launch of VISA Prepaid Card for the travel sector is currently underway.A couple of years ago, CBL took an ambitious objective of becoming the number one private commercial bank in Bangladesh. In order to achieve this goal, CBL is going through a massive restructuring process. In its 25th Anniversary, CBL has come up with a new dynamic brand logo and tagline. The company is expanding very fast with the recruitment and training of highly potential employees, automation of the daily operations and improvisation of its service quality policies.

The City Bank Mission Statement To be the leading bank in the country with best practices and highest social commitment.

Vision of the organizationTo contribute to the socioeconomic development of the countryTo attain highest level of customer satisfaction through extension of services by dedicated and motivated team professionalsTo maintain continuous growth of market share ensuring qualityTo maximize bank’s profit ensuring its steady growthTo maintain the high moral and ethical standardsTo ensure participative management system and empowerment of human resourcesTo nurture an enabling environment where innovativeness and performance is rewarded

Logo of The City Bank

The logo of The City Bank is an image of peacock. It is spectacularly beautiful because of the brilliant, iridescent, diversified colorful pattern in its tail. The color of the peacock in the logo is Red & White because it represents energy.

Central Depository System of the City BANKBackground of the company: City Bank Ltd. is one of the first generation private Commercial Banks in Bangladesh, which has started its operations on 27th March, 1983, in Dhaka City. The bank currently has 84 online branches and 5 SME centers spread across the length & breadth of the country that include a fully fledged Islami Banking branch. Besides these traditional delivery points, the bank is also very active in the alternative delivery area. It currently has 35 ATMs of its own; and ATM sharing arrangement with a partner bank that has 225 ATMs in place; SMS Banking; Interest Banking and so on. Soon its Customer Call Center is going to start operation. The bank has a plan to end the current year with 50 own ATMs. A fully operational Commercial Bank, The City Bank Ltd. focuses on pursuing unexplored market niches in the Small and Medium Enterprise Business, which hitherto has remained largely untapped within the country. In the last five years of operation, the Bank has disbursed over BDT 2500 core in loans to nearly 400,000 small and medium entrepreneurs. The management of the Bank believes that this sector of the economy can contribute the most to the rapid generation of employment in Bangladesh.Since inception in July 2001, the Bank’s footprint has grown to 84 branches, 5 SME unit offices and 225 ATM sites across the country, and the customer base has expanded to 800,000 deposit and 59,000 advance accounts through 2013. In the years ahead The City Bank Ltd. expects to introduce many more services and products as well as add a wider network of SME unit offices, Retail Branches and ATMs across the country.

Objective of the report:

Business Strategy

As a general practice City Bank will definitely concentrate its business in Trade Finance/ Export–Import business and all types of Commercial Loan, Industrial/ Project Finance / Syndication and structured Finance / SME Financing/ Retail Financing and other specialized programs except otherwise restricted by the Government or indicated as unethical and banned items.

The Bank will give emphasis to diversify its business portfolio commensurate with economic and business trend and cyclic aspect of the economy & appetite for growth of each sector, life cycle of the products, demand supply gap, social and national obligation etc. The Bank’s policies for financing in different major sectors are summarized as follows:

Broad objective:The Central Depository System concepts are new in Bangladesh and the Report to develop in that area is essential. The main object of the Report is to analyses the Central Depository System and Share Management of the City Bank Limited to identify the Stock Market system in Bangladesh.It would further our operational knowledge on Central Depository System area.It would also familiarize me with the practical aspects of the respective areas andwould help us to sort out problems/difficulties with effective remediation.

Specific objective:The main object of the Report to discuss on the legality and essential of introducing the Central Depository System, method of Central Depository System, advantage and disadvantage of the Central Depository System.To discuss the transaction of shares before introducing the Central Depository System and after introducing the system. To also placed discussion on investor’s protection by the Central Depository System, attraction of the investors in the capital market in Bangladesh.This is also discussed on, opening of Account, pledging, fees and deposits, eligible securities and equity market operation.A depository is like a bank for shares instead of money. Instead of holding shares in the form of certificates, investors have accounts in the depository and are able to move securities and settle stock exchange transactions by an electronic update of their accounts.The core service of a depository is the efficient delivery, settlement and transfer of securities through a computerized book entry system. The need for a depository arose from shortcomings in the present settlement system, resulting in:

lengthy delay in delivery, settlement and transfer of securities tedious procedures for verification of securities and transfer deeds considerable time involved in dispatching cash dividends and bonus shares risk of damaged, lost, forged and duplicate securities serious problems associated with physical custody tedious procedure involved in pledging of physical securities to raise

capital.

Scope of the Report:This study will deal with CDS, Company Secretariat and Share division activities undertaken by THE CITY Bank Ltd. This study will increase the idea of Deposit Management through Depository Management

Methodology: Sources of data collection: The project report will be written on the basis of both primary and secondary data analysis.

The analyses are:

Primary:The primary source of data contains information provided by the THE CITY Bank Limited Annual Report, IPO Prospectus and Mohammad Obaydur Rahman, Manager, Company Secretariat and Officers of different levels of THE CITY Bank Limited.

Secondary:The secondary source of data contains information obtained from various Practical Report, Depository Regulations, 2000 and Depository (User) Regulations, 2003, Companies Act 1994, SEC monthly Review, The City Bank Annual Report and Internet.

Share holding structure of THE CITY Bank Limited at a Glance Types of Share  Ordinary share Date of publication of Prospectus  September 20, 2009 Subscription Open  November 12, 2009 Subscription Close  November 16, 2009 For Non resident  November 12, to November 25, 2009 Offer Price (Tk.)  120.00 Face Value (Tk.)  100.00 Market lot (Share)  100 Sponsors Portion (Share)  5,000,000 Public Offer (Share)  5,000,000 Total Issued Shares  10,000,000 Total Paid up Capital (after IPO)  1,200,000,000 Reason for IPO:  To strengthen the company’s capital base

& augment business expansion. EPS (as per Prospectus)  15.74 NAV (as per Prospectus)  172.31 Manager to the Issue  AAA Consultants & Financial Advisers Website  www.thecitybank.com

Corporate Social Responsibility:THE CITY Bank Ltd has not just a corporate identity it has a social identity too. As a bank they are socially responsible. Fifty percent of the Loan portfolio is diverted to Small and Medium Enterprise banking, and as a financial intermediary they channel funds from the surplus ends to the needy. Countrywide network of SME Units cater to the needs of small entrepreneurs to help them build their asset base. THE CITY Bank Ltd is the market leader in SME, striving for socio-economic upheaval in Bangladesh. THE CITY Bank Ltd does not support any finances that are detrimental to our environment. A portion of the revenue is channeled to support THE CITY schools, where children study for free. 70% of these children are female.

Nature of business:A fully operational Commercial Bank focuses on pursuing unexplored market niches in the Small and Medium Enterprise Business, which hitherto has largely untapped within the country. The Bank is also actively involved in retail banking and has a broad range of consumer loans ranging from personal loans up to auto

loans to debt & credit cards. Furthermore the Bank has gained a strong market share in the global money transfer market or remittance through significant tie-ups with major international money transfer agencies. In the last two years, THE CITY Bank has also participated in providing large syndication loans in association with other National Commercial Banks in the country. Today THE CITY Bank is considered as fourth generation bank extending full range of banking facilities by providing efficient, friendly and modern fully automated on line service. Since its inception, it has introduced fully integrated online banking service to provide all kinds of banking facilities from any of its conveniently located branches.

The City Bank-At Present:The financial performance of The City Bank is found to be satisfactory. During the year 2009 the Bank reported Tk 334.26 million. Profit after Tax (PAT). The growth rate of PAT during this period was 73.47%. Financial performance in 1Q 2009 is also found to be increasing trend. It is noteworthy here that the Bank has turned into a profitable organization in the year 2006 after making loss in first two years of its operation. The above performance of the Bank was based on the higher growth rate of business activities during the period. Net interest income of the Bank has increased by 90.60% during 2009.On the other hand; growth of investment income and fee base income was 74.92% and 97.55% respectively. Operating profit of the Bank increased to Tk 2077.42 million in 2006 from 1173.31 million in 2005, representing growth rate of 77.05%. Earning per Share (EPS) of BBL has increase the same manner from TK 38.54 %in 2005 to TK 63.31% in 2006 per share, representing increase of 64.27%. The Bank has declared 20% bonus share as dividend for its shareholders on the profit of the Bank for the year-end 2007.

(1)Credit Rating of THE CITY Bank Ltd by CRISL

  Long Term Short TermEntity Rating AA3 ST-2

A (Adequate safety):-Financial Institution rated in this category is adjudged to offer moderate degree of safety for timely repayment of financial obligation. This

level of rating indicates a corporate entity with an adequate credit profile. Risk factors are more variable and greater in periods of economic stress than those rated in the higher categories.ST-2 (High Grade):-High certainty with regard to the obligor’s capacity to meet its financial commitments. Risk factors are very small.

1. Auditor’s report 2013 of The City BankAccording to the Credit rating report, 2006 by Credit Rating Information and Services Limited (CRISL), THE CITY Bank Ltd. is rated as “single A” in the long term and “ST-2”in the short term on the basis of the organization’s strong distribution channel, satisfactory profitability, liquidity risk management structure, and IT infrastructure, adequate capital adequacy and professional management team etc. The key moderating factors for the ratings are limited market share, dependency on high cost bearing fixed deposits, low non-funded business and high HR turnover.Internal and External source of Cash

(As per Audited Accounts amount in TK)

(1) Internal Source of Cash

                      30.06.07 31.03.06 31.12.05 31.12.04Ordinary Share Capital

120,00,00,000 500,000,000 500,000,000 500,000,000

Preference Shares

150,000,000 150,000,000 - -

Statutory Reserve

337,196,032 135,564,816 58,396,570 19,860,550

Surplus in Profit & Loss Account

496953184 226,006,069 224,490,340 70,346,259

Total 218,41,49,216 1,011,570,885 782,886,910 590,206,809

Total Internal Source of Cash

From the above table and graph it is noticed that internal flow of cash of the Company is gradually increasing every year and in the year 2007 the rate of increase was highest because of earning maximum profit. So the company’s performance is steadily increasing.

Functions of Departments:

Corporate & Investment Banking: This division of CBL mostly deals with deposits and loans from corporations or large businesses, as opposed to normal individual members of the public (retail banking). The functions of the corporate division may include the following tasks:

Issuing bank drafts and bank cheques Accepting money on term deposit Lending money by overdraft, installment loan, or other means Providing documentary and standby letter of credit, guarantees, performance

bonds, securities underwriting commitments and other forms of off balance sheet exposures

Safekeeping of documents and other items in safe deposit boxes Sale, distribution or brokerage, with or without advice, of insurance, unit

trusts and similar financial products as a “financial supermarket” Retail BankingThe CBL Retail banking division executes transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so forth.Recently launched ‘Celtic Project’ (American Express Credit Card) is also the core initiative of City Retail. 

SME BankingSME banking division is engaged in the transactions which are directly connected with small & medium businesses or entrepreneurs with diminutive amount of

investment. Services offered include: business loans for plant & machinery purchasing, mortgages and other short term & long term loans. Treasury & Market Risk Division

Interest Rate Risk ManagementTo achieve the objective of protecting the Bank from changes in market interest rates, the Bank matches the sensitivity of its assets and liabilities. The Bank’s strategy for implementing the desired matching is to divide the balance sheet into the two broad types of interest rate sensitive assets and liabilities (floating rate and fixed rate) and to align the interest rate profiles of each balance sheet component to the appropriate benchmark. Currency Risk ManagementThe agreement establishing the Bank explicitly prohibits it from taking direct currency exchange exposures by requiring liabilities in any one currency (after swap activities) to be matched with assets in the same currency.  Liquidity Risk ManagementBank holds sufficient liquid assets to enable it continue normal operations even in the unlikely event that it is unable to obtain fresh resources from the capital markets for an extended period of time. The Bank’s policy requires maintaining a prudential minimum of liquidity based on projected net loan transfers, contingent liabilities and debt service payments. Equally, the Bank’s policy permits the increase of liquid resources up to an operating level based on the minimum in addition to taking into account undisbursed and irrevocable commitments to take advantage of low cost funding opportunities as they arise.

SWOT Analysis:Strength:

o American Express Credit Card: The City Bank Ltd. has launched both local and dual currency (BDT & Dollar) Amex Credit Cards on 7th November, 2009. According to the claws of the agreement, CBL is going to be the sole provider and dealer of Amex cards in Bangladesh. Brand image of Amex is certainly going to leverage the brand reputation of City Bank Ltd.

o New management: City Bank’s management team has significantly changed since the year 2007. Personalities and brilliant minds like Mahmood Sattar, Mashrur Arefin, Sohail R K has taken over the new management. New and new departments like NFB (Non funded business), Policy & analysis etc are opened for better operation purposes.

o Experience: City Bank Ltd. has been in the industry for around 25 years. This long period of existence in the industry has helped CBL to gain in-depth knowledge about the industry trends as well as helped to build up strategic partnership with many corporations which most other banks could not achieve in the shorter period of time.

o Availability of Branches: Currently CBL has 82 Finacle (Online) branches, 1 fully fledged Islami Banking Branch and 5 SME centers throughout the country. This big number of branches is giving easy access to their customer which is a huge advantage of CBL over its customers. 

 Weaknesses

o Low remuneration package: Compared to other banks, CBL’s remuneration package is poor. With this lower payment policy, CBL won’t be able to hire the best executives of the country and might even lose their existing brilliant executives to other banks.

o Lower service quality: Compared to HSBC or SCB, CBL’s service standard is way lower. Except few selected branches (Dhanmondi, Gulshan branch), most other banks don’t even have posh and neat interior decoration. Customers are not treated according to their expectation level and service is very slow.

o Existing elderly employees: A big percentage of CBL employees are working in this bank over 15 years. The new management is finding it hard to deal with these employees, especially with them who are reluctant to accept new policies and change within the organization. Now it’s a matter of

question for the CBL top management that whether to find an appropriate exit strategy for these employees or whether to arrange appropriate training programs to educate them.

o Poor Brand Image: Prior to the launching of Amex Cards, CBL had negative brand image among its customers which lasted for more than 20 years. Now it would be difficult for this new management to change this brand image all of a sudden.

 Opportunities

o Credit Card Business: The card business of Bangladesh is booming since last few years. ATM’s, Debit cards & Credit cards are becoming a priority product both for the customers and bank itself. A major portion of the Bank’s income comes from card business. CBL has already launched AMEX Credit Cards on 7th November, 2009. This is certainly going to boost their card business and brand image. In addition, CBL is looking forward to include Master Card in their card business. They are hoping to bring Master Card by July, 2010. Both these brands possess huge potential for CBL to grow as the leader in the card business in Bangladesh. 

o Online Banking: With the advancement and availability of technology, the need for online banking is getting more priority. Both foreign and local banks are moving towards online banking to ease the transaction process for the customers. CBL too, has taken some tremendous efforts. They have already converted 83 of their branches into online branch and providing certain services through internet.

o Automation: Since 2007, one of CBL’s major projects was to automate its operation by using latest technology and software. Currently all of their branches are connected through intranet. This network based banking is making the overall departmental jobs much easier and faster, ensuring better and much faster customer service. CBL employees are also using software called ‘Finical’ which helps them to track information and data about their customers within a matter of minutes. This move towards automation will certainly provide CBL a big advantage over other banks in the industry.

Threatso VISA Credit discounts: We have already mentioned that CBL has

undertaken an ambitious project of American Express in the card segment of the banking industry. However, the card segment of Bangladesh is already dominated by Visa credit cards. Moreover, right after the launch of Amex Cards, several banks (i.e. standard chartered bank) has undergone significant discounts in their visa card offerings. Under these circumstances, further promotional efforts in Visa by other banks can possess a devastating effect in CBL’s Amex Project.

o Failure to establish AMEX brand image: Compared to the existing foreign banks, CBL’s brand reputation is considered somewhat poor. Especially in case of service quality. With the existing brand image of its own, CBL might fail to establish AMEX brand image properly.

o Maintaining a broad target market: CBL’s target market consist of consumers from lower class to consumers with high net worth. Recently undertaken ‘Celtic Project’ is designed for solely the elite class of Bangladesh. However, with limited training, the existing employees might turn to provide inefficient service to these different classes of people, especially since the expected service quality of the upper class is much different than the lower classes.

o Management Collision: In the year 2006, a significant change occurred in the history of CBL’s management because of the sudden recruitment of certain personalities like Mahmood Sattar, Sohail R. K. and Mashrur Arefin. Being in the position of MD, Mr. Mahmood Sattar renovated the overall structure of the bank and centralized its operations. He tried to ensure that the new management consists of young and highly talented people of the industry.

Chapter-2

Income

A comparative income position of the Bank for the period ended March 2006 and for years ended 31st December 2005, 2004, & 2003 are as followsDESCRIPTION 31.03.2006 31.12.2004Net Interest Income 240,232,370 607,331,119Income from Investment 69,153,731 292,067,158Commission, Exchange and Brokerage

109,557,900 271,073,023

Other operating income 786,391 2,846,359Total operating income 419,821,392 1,173,317,659

Operating Expenses

A comparative operative expense position of the Bank for the period ended March 2006 and for years ended 31st December 2005, 2004, & 2003 are as follows:DESCRIPTION 31.03.2006 31.12.2005Total operating Expenses 213,201,027 592,999,647Profit before provision 206,620,364 580,318,012Provision for loans & advances 79,384,437, 239,413,598Provision for other 74,697 544,313Total Profit before Tax 127,161,230 340,360,101

Source: THE CITY Bank Prospectus

Management Aspects

Like any other business organization, the Top management makes all the major decisions at THE CITY Bank Limited.  The Board of directors being at the highest level of organizational structure plays an important role on the policy formulation.  The Board of directors is not directly concerned with the day-to-day operation of bank.  They have delegated their authority to its management committee. Now there are 12 directors in the Top management of the bank. All the directors have good academic background and have huge experience in business.

The Management Hierarchy of THE CITY Bank Limited is given below:

Chairman Board of Directors Managing Director Deputy Managing Director Executive Vice President Senior Vice President Vice President Senior Assistant Vice President First Assistant Vice President Assistant Vice President Senior Principal Officer Principal Officer Senior Officer Officer Grade II Officer Grade I Junior Officer Executive

Departments of CBL

THE CITY Bank Limited had organized and restructured its different departments and working procedures in order to make the bank more dynamic, effective and goal-oriented.  According to that, THE CITY Bank Limited currently has 15 major departments to provide smooth services to its clients as well as efficient management of the Bank.  These Departments are:

1. Human Resource Department2. Secured Remittance Services Department (SRS)3. Payment Service Department (PSD)4. Financial Administration Department (FAD)5. Corporate Department6. Company Secretariat & Risk Management Department

7. SME Banking Department8. Retail Banking Department9. Customer Service Delivery Department (CSD)10.Asset Operation Department (AOD)11.Impaired Asset Management Department (IAM)12.Treasury Department13.Cards Department14.External Affairs Department15.General Infrastructure Department (GIS)

Products & Services of THE CITY Bank Limited

THE CITY Bank Limited as a third generation bank is trying heart fully to gain competitive advantage than the other banks through a regular balanced mix of cost leadership strategy and differentiation. The concentration strategy of its branches in major commercial areas puts it in a favorable position.

THE CITY Bank offers access to a wide range of products and services that can meet all financial needs of Individuals and corporations including banking, investing, mortgages, lines, loans and more.

According to the official website THE CITY Bank limited serving the following products and services to the customers:Loans and Advances

Instant CashHigh Flyer LoanTeachers LoanCar LoanLife Style LoanUnsecured Personal LoanSecured Loan/ODApurbo LoanPathshala LoanCredit Card Loan

Salary LoanDeposits

Premium Term DepositABIRAM -Fixed depositDPS-Deposit Premium SchemeCurrent Account

Corporate productsTransaction Sales/Priority bankingService ObjectiveTerm FinanceWorking CapitalOur Target MarketSecurity

InternationalTrade FinanceMoney MarketForexRemittance SWIFT

Chapter-3RecommendationOn the basis of the problems we can suggest these recommendation-The banking should completely be operated through online. Though it is online banking facilities in some branches, but still some works are being done manually, which should be eliminated gradually and it will automatically give more efficiency in service.Employees training should be conducted so that they will be more professional and efficient to deal with problem customers and problematic situations.Individual attention should be given to customers in order to better understand their needs and better satisfy them.

City BANK should pursue a positive advertising campaign in order to build up a strong image and reputation among potential customers. TV ads should be aired to reach a wider array of customers. The ads should capitalize on building strong relationship, needs of customers and quality service of the bank rather than features of products.CBL should arrange the monthly seminar or workshop on the vest area of Foreign Exchange business and its contemporary issues for the branch’s officer. Certainly this workshop will motivate them.Head office of this bank should supply necessary prospectus about the information of the bank for the clients. Although every table of every section is capable of supplying the various information about the bank but this task is generally preformed by the front desk or account opening section. However this section is found always busy. Therefore, if CBL wants to perform this task in more efficiently the branch should keep a Reception Section.

Chapter-4ConclusionThe City Bank Ltd. went through a massive restructuring process during the year 2006.  During that period, the bank took some important initiatives (i.e. Centralization, one stop service training, know your customer profile, mystery shoppers etc.) to improvise its customer service quality. However, even after taking such steps the bank still could not change its service quality image completely in its consumer minds.This study shows that except few exceptions, CBL consumers possess very low satisfaction level in terms of customer service. The report also shows that the level of customer satisfaction varies from branch to branch. While Dhanmondi branch, rated as the best customer service provider, other branches scored to be moderate or very low in terms of customer satisfaction. The reason behind this fact is that previously CBL failed to establish a uniform service quality standard within their organization and the branches served their customers according to their own method. However, The City Bank Ltd. has recently been transformed in to a Centralized bank. And performances of branches like Dhanmondi & Gulshan can be taken as ideal examples.