SWOT analysis on performance of BASIC Bank Ltd:
Every bank has Strength, weakness, opportunities and Threats.
• Strong corporate management.
• Special knowledge on banking.
• Recruitment and training systems are good.
• Banking services are very good.
• New and innovative things are performing well.
• Investment facilities are very fine.
• Social commitments are very excellent.
• Lack of manpower in the whole bank as well as New Market branches.
• Bank customer relationship is not well enough.
• Lack of entry level employers in business oriented.
• As an old commercial bank they have lots of high skilled corporate level employees and wealth.
• This bank has the greater opportunity to diversify investment.
• It will be able to give the new and innovative services to the people.
• It has so many opportunities to give special services in advances.
• In the global competition, there are a number of foreign banks are entering in to the market, which are threats for this bank.
• Most of the employees are not dedicated to this bank to perform well. They want to switch from this bank for better position and salary.
• Some other commercial bank starting 24 –hour banking, non-office hour banking facilities but this bank is not following up in well way.
My following recommendations can be made based upon this study:
Bangladesh Bank has to be more and more alert and strengthen its supervision so that banks comply with the rules and regulations as stated in the Bangladesh Bank guidebook.
Bangladesh Bank should make a training institute to provide training to the Bankers so that the performance of the Bankers is uniformed for all Banks in Bangladesh.
Export Policy, Bangladesh Bank Foreign Exchange Regulations Act regarding exports, Banking Companies Act have to be amended to give more facilities to the exporter to enhance the export of the country.
Officials of the branch should be provided with extensive training so that they can easily understand the export procedures properly and can comply these according.
Bangladesh Bank should be stricter in the event of the compliance of its prescribed and punish the scheduled banks for non-compliance of its prescribed rules regarding the export procedure and exercise its authority to reprimand and punish the scheduled banks for non-compliance.
SWOT analysis on performance of The City Bank Ltd:
Every bank has Strength, weakness, opportunities and Threats.
· Strong corporate management.
· Special knowledge on banking.
· Recruitment and training systems are good.
· Banking services are very good.
· New and innovative things are performing well.
· Investment facilities are very fine.
· Islamic banking is performing well.
· All employees of Kawran Bazar branch are very fine, Knowledgeable and the whole bank following such kind of.
· Social commitments are very excellent.
· Lack of manpower in the whole bank as well as New Market branches.
· Bank customer relationship is not well enough.
· Lack of expertise in Islami banking.
· Lack of entry level employers in business oriented.
· The functioning of Dual card is not ease to use.
· As an old commercial bank they have lots of high skilled corporate level employees and wealth.
· This bank has the greater opportunity to diversify investment.
· It will be able to give the new and innovative services to the people.
· It has so much opportunities to provide social commitments.
· It has so many opportunities to give special services in advances.
· In the global competition, there are a number of foreign banks are entering in to the market, which are threats for this bank.
· Most of the employees are not dedicated to this bank to perform well. They want to switch from this bank for better position and salary.
· Some other commercial bank starting 24 –hour banking, non-office hour banking facilities but this bank is not following up in well way.
· Most of the time bank loans are permitted by the pressure of outside merchantman or high officials of Government level. This is a big threat for this bank.
The City Bank Ltd is the largest bank in the private sector of our country. Increment in the net profit of the banking sector was on an average “---%” last year. Under the able guidance of the managing director, ex-deputy governor of Bangladesh Bank, The City Bank Ltd is indeed doing well. The following recommendations can be taken into consideration to make it more effective.
Bangladesh Bank should monitor more closely the lending activities of The City Bank Ltd.
As once upon a time it was a nationalized bank, various rules regulations, office norms and working environment still exist like other nationalized banks of our country. The City bank Ltd has to come out from that footing and be organized like some reputed private sector banks, which are doing very well.
There exist various rules and also prescribed format for offering loans and advances to the customers. In maximum of the case these are not followed properly. Lending Risk Analysis (LRA) is not done regularly and properly.
Application forms of the customers remain erroneous and full of wrong information. It has been observed that the information given by the customer regarding business, property holding, inventory, bio data of entrepreneur do not tally on ground. Even after that the banker provides these customers with loans after doing necessary correction in the customer’s application by the banker. Close monitoring and supervision has to be ensured by the bank authority in this respect.
More incentive program needs to be undertaken for the officers and employees of the bank to improve the recovery rate. Here the incentive scheme taken by Bangladesh Krishi Bank named “MIRACLE” can be mentioned which has given fruitful result.
Credit information bureau (CIB) should act more efficiently. All the necessary information of a prospective borrower should be available to the bank authority also. Here the bank should use upgraded computer software for this purpose.
The bank itself should be much more cautious before sanctioning loan. The bank authority should strictly follow the loan appraisal procedure, and also ensure that all the information provided by the clients is correct.
All the officers and employees working specially in the recovery section should be more sincere to their respective job.
Long outstanding cases filed in the insolvency court should be resolved as early as possible with greater priority. For its own interest bank should employ well-reputed lawyers to settle all the outstanding cases.
More emphasis should be given on foreign exchange transactions. Timely collection of export proceeds has to be ensured. The bank should strictly follow all the means and ways to check the fraudulent activities in case of foreign exchange trade.
Opening an L/C involves lots of paper works and also time consuming. Officers and employees are not well conversant with the rules and policies of foreign exchange. They need to be trained on these and the whole system has to be made computerized so that it takes less time to open an L/C.
Due to non-availability of affiliation, negotiation becomes difficult with some of the foreign banks. For this some prospective exporter and importer are discouraged to do their business with all those particular countries. To expand the business activities, The City Bank Ltd should make an endeavor to increase the affiliation with more number of foreign banks.
SWOT ANALYSIS OF BSRS:
In order t develop marketing strategy SWOT analysis is very important element of any organization. The SWOT analysis of BSRS is given below:
Good interpersonal relation: In BSRS there is no bossing relation between superior and the subordinates. A good interpersonal relation exists between the officers and staffs.
Efficient performance: BSRS provides hassle free customer service to its clients comparing to the other Development Financing Institution (DFI) in Bangladesh.
Companionable environment: The work environment of BSRS is sophisticated. The whole office is well furnished. It provides canteen facilities for lunch to its employees.
Lack of customer confidence: The public as a loosing concern knows BSRS. So, average customers lack the confidence in BSRS and judge the Sangstha as an average DFI.
Narrow operating span: BSRS has a very narrow operating span in the country. It has only two branches in Dhaka.
Absence of strong marketing activities: BSRS currently does not has any strong marketing activities through mass media Television. Television ads play a vital role in image building, which is necessary for BSRS.
Absence of foreign exchange service: BSRS does not provide foreign exchange service though it starts commercial banking activities. It should provide foreign exchange service as it is both a DFI and commercial bank.
Contribution to industrialization: BSRS is a government bank it has a wide area of opportunities to create base of industrialization in the country than private banks.
Experienced manager: One of the key opportunities of BSRS is that it has efficient managers They facilitate the operation of BSRS.
Huge population: Bangladesh is a developing country. To satisfy the needs of huge population, a large amount of investment is required. So BSRS has a large opportunity in this situation.
Default culture: This is the major threat of BSRS because of loan default culture it is known to the public as a loosing concern by this time.
Similar product is offered by all banks: Now days different foreign and private bank are offering similar type of product with an almost similar profit margin which results decline in profit.
The Sangstha should provide longs only to the experienced, motivated prospective entrepreneurs.
Political influenced should be lowered as possible in case loan sanction.
Working capital facilities should be given to the sponsors.
LC opening facilities should be given to the commercial branch which is most profitable area of making huge amount of profit for the other commercial banks.
Different social program should be adopted to make understand the sponsors.
Incentive facilities should be given to the regular as well as irregular payers.
Responsibility, morality and patriotism should be emphasized among the employees.
SWOT analysis on Mercantile Bank Limited (MBL):
Strengths of Mercantile Bank Limited (MBL):
Mercantile Bank Limited (MBL) is newly established Commercial Bank in the Banking Sector but it has built strong reputation with in short time.
The Financial Condition of MBL is very strong. It’s Loan and Deposit Quality is better than most other Private Commercial Banks in Bangladesh.
MBL has strong and wide network throughout the country and provides quality services to every level of Customers.
The Management Team and Board of Directors consist of eminent personalities from the realm of commerce and industries of the country which made the bank more reliable and trustworthy.
Weaknesses of Mercantile Bank Limited (MBL):
One of the greatest weaknesses for MBL is the Shortage of Manpower in every Division. Most of the time one officer has to perform several jobs at a time. This tremendous pressure makes them exhausted which can create dissatisfaction to the Customers.
Lack of Motivation and incentives for the Employees discourages them to provide the best Service to the Customers. This is another Weakness of the Bank. .
High restrictions and low interest rate discourage the customers for opening and maintaining accounts with MBL.
Opportunities of Mercantile Bank Limited (MBL):
The greatest opportunity for MBL lies in the increase of standard of living of a certain mass of the Population as well as their acceptance of the Nation of Consumer Financing and Short Term Lending.
The Credit Facility offered such as: personal loan, CC Hipo, Hire purchase, SME loan, doctors loan etc by MBL attracted security and status conscious businessmen and as well as service holders with Higher income group.
Threats of Mercantile Bank Limited (MBL):
The emergence of several private and foreign banks in few years, offering similar Service with less or free charge for the facilities can be a major threat of MBL.
The Central Bank exercise strict control over all banking activities in local banks like MBL. Sometimes the restrictions impose barrier in the normal operations and policies of the bank.
Rival banks can easily copy the products offered by MBL. Therefore the bank is in continuous of product innovation to gain temporary advantage over its competitors. This is another threat of the bank.
Present condition of economy and political instability in Bangladesh can be threat.
I would like to share the following suggestions that I have made after analyzing the above findings:
The number of customer is increasing. To keep the commitment MBL must increase its manpower to solve the customer’s problem more effectively and efficiently within short time.
All the department should be computerized so that authorized officer can provide service to the customer in a minimal time. As I saw during my internship program the General Banking Department of the Banani Branch has not got a computer of their own. So when ever customer is making an enquiry or closing their account or about the schemes, the authorized officer is using calculator or wait for the computer section to provide necessary papers. This is very much time consuming for both the Bank & the customer. This department should provide instant service to the customer. So GB department should have their own computer with appropriate software (s).
MBL should take necessary action to motivate its officers to encourage them to work hard and to make them believe that they are also a part of the team and the bank does think about them.
Management should place right person in the right place.
Try to establish decentralize management so that decision-making authority will reach to the root level, which will ensure prompt services and to increase the decision-making capabilities and confident of the employees.
Mercantile Bank Limited should take necessary steps about the marketing of their products. Now there are so many banks in the country which is making the Banking sector more competitive, diversifying and dynamic. Each and every Bank is offering their best. So to exist in this competitive market MBL should go for a vast marketing of its products. They can give advertisements in newspaper and magazine, television, billboards and neon signs. As we know this is a very competitive market, to make its position stronger the Bank, may use other policies like, rather bring the customer to the Bank, the Bank may go to the customer. The Bank may introduce a new department like Marketing & Advertising. They will concentrate on only on marketing, promotion, sales and advertising.
Q-Cash service should be available at all the branches of MBL. This debit card is getting very much popular among the people. Though it is very much popular but the problem is there are limited booths. MBL should increase its Q-Cash booths otherwise it will loose many of its customers.
Other banks of the country are now going to introduce new computerized technologies. With that a customer can make transaction by sitting at home (online transaction). They are announcing these facilities with such an advertisement that attracting both existing and potential customer. So MBL should update its banking technology to catch up the update customer. Otherwise it will be difficult for the Bank to hold its existing client.
According to MBL banani branch customers requirement it should have its own car parking space.
To increase the no. of customers MBL should increase different types of deposit schemes.
The internal decoration of the branch should be improved.
The Bank may introduce customer service department. It will concentrate on customers inquiry, phone banking, Balance Check.
As the Competitors offering a higher interest rate on deposits and lower charges in loans, MBL should think about it and if possible then maintain the interest rate and bank charges as similar as to its competitors.
As other Private commercial Banks like Prime Bank Limited (PBL) offering a more relaxed Individual Loan, so in order to compete the market MBL should make their personal loan more relaxed than other competitors.
MBL should practice a participant marginal process because in this all the employees get chance for participating in problem recognition and problem solving and this will make the employees feel better which will work as a motivation weapon. Also “Award System” should be activated depending on the Performance Appraisal of the Employees.
Please note that: All data have artificial.