NCC Bank Limited

TOPIC OF OUR PRESENTATION

SWOT Analysis of NCC Bank Considering Competitive Banking

Market

NCC Bank Limited

GROUP PROFILE OF GROUP – B (B FOR BANKERS)

SL.NO. NAME DESIGNATION BRANCH

1 Mr. Khoundaker Mazharul Islam Riadh MTO Kawranbazar Branch

2 Mr.Md. Mushadur Rahim MTO Foreign Exchange Branch

3 Mr.Md. Moniruzzaman Monir MTO Bijoynagar Branch

4 Mr. Mohi Minul Haque MTO Dilkusha Branch

5 Mr. Mohammad Borhan Uddin Adnan MTO Dhanmondi Branch

6 Mr. Md. Mohiuddin MTO Agrabad Branch

7 Mr .Md. Rezaul karim Shah MTO Khatungonj Branch

NCC Bank Limited

Special Thanks To Our Honorable Course Coordinator & Principal

MR. JAGADISH CHANDRA DEBNATH

NCC Bank Limited

NCC Bank Limited

Strengths

NCC Bank Limited

A Bank with Beautiful Own Building

NCC Bank Limited

Capital Adequacy

NCC Bank Limited

A Bank with Democratic Board

• An excellent board of 15 directors including 2 independent directors

• A pure democratic board without any domination

• Initiating newer development programs in the bank

NCC Bank Limited

Green Banking Compliance

• Separate Green Banking Unit• “Respect for Nature” as slogan of Green

Banking in Core Values• Green Financing and Opening of Green

Branches

NCC Bank Limited

Excellent Credit Rating Report

NCC Bank Limited

Growth in Remittance

NCC Bank Limited

1st Bank to Provide Loans for Maize Production

• NCC Bank of Patgram and Gangachara Branch working with an NGO named Katalyst since 30 October, 2011.

• Can lead to about 600,000 farms producing maize by 2016.

NCC Bank Limited

Weakness

NCC Bank Limited

Less Exposure in Retail Banking

House Building Loan

Special Housing Loan

House Renovation Loan

Personal Loan Scheme

0

20

40

60

80

100

120

140

160

147.16

97.27

2.52 0.7

Solo position (In Million)

NCC Bank Limited

Comparison with Total Loan Amount

Less Exposure in Retail Banking

NCC Bank Limited

Increasing of Non-performing loan (NPL)

Current Position of NPL

2009 2010 2011 2012 20130

1000

2000

3000

4000

5000

6000

Year

Am

ount

(in

Mill

ion)

NCC Bank Limited

Poor Value maximization to the Shareholders

NCC Bank Limited

Inadequate ATM service

242474

300

310 235150 69

DBBL

SCB

BRAC Bank

IBBL

AB Bank

EBL

NCCBL

NCC Bank Limited

THREATS

NCC Bank Limited

Threats

Non-Performing Loans and AdvancesAggress

ive Banking

Emergence of New

Banks

Concentration of

BusinessExcessive Governme

nt BorrowingPolitical

and Socio-Economic Instability

Islamic Banking

Anti-money laundering Complianc

e

Capital Adequacy Crisis

Stagnant Emergence of

New Entrepreneurs

Lack of Integrity

Credibility and Image Crisis

in the Financial Market

IT Security Threat

Excess Unutilized Deposit

NCC Bank Limited

Non-Performing Loans and Advances

NCC Bank Limited

Less Diversified Investment Portfolio

Concentrating loans and advances in a single sector is risky and threatening. If the sector falls then large portion of investment become insecure.

NCC Bank Limited

Emergence of New Banks and Aggressive Banking

At present 56 schedule banks are operating banking business in Bangladesh.

In addition to this 31 Non-Banking Financial Institution and approximately 2300 NGOs are extending operation.

In 2014, 9 new banks are added to make the competition worst resulting 56 schedule banks.

NCC Bank Limited

Excessive Government Borrowing When government creates pressure for excessive borrowing

then banks become bound to buy Treasury bill and other form of bonds.

Increasing government borrowing every year is a threat to private sector investment.

NCC Bank Limited

OPPORTUNITY

NCC Bank Limited

Domestic factoring as a product of SME Financing

NCC Bank Limited

Present Scenario of Domestic

Factoring:

IDLC is the pioneer in providing factoring of account receivable service in Bangladesh.

IDLC is also doing reverse factoring for corporate which offers a customized solution for financing Accounts Payable, where nominated suppliers will be paid by IDLC on behalf of customer, immediately after goods or services have been delivered to you.

Among the Banks, Eastern Bank limited is providing Invoice Factoring as a product of SME Banking.

NCC Bank Limited

Mobile Banking

According to a survey published in the Daily Prothom Alo on November 24, 2014 that 75 % of the rickshaw puller send their money through the mobile banking.

NCC Bank Limited

What can be done through NCCB Sure Cash:

Disbursement of inward foreign remittances.Cash in /out using mobile account through

agents/Bank branches/ ATMs/Mobile Operator's outlets.

Person to Business Payments ‐ e.g. a. utility bill payments, b. merchant payments.

Business to Person Payments e.g. salary disbursement, dividend and refund warrant payments, vendor payments, etc.

NCC Bank Limited

What can be done through NCCB Sure Cash:(cont.)

Government to Person Payments e.g. elderly allowances. Freedom‐fighter allowances, subsidies, etc.

Person to Government Payments e.g. tax, levy payments.

Person to Person Payments (One registered mobile Account to another registered mobile account).

Other payments like microfinance, overdrawn facility, insurance premium, DPS, etc.

NCC Bank Limited

SURE CASH FLOWCHART

NCC Bank Limited

Potentiality in SME Sector

NCC Bank Limited

Prospect of SME:

Increase deposits.Diversify business activities.Trade finance.Enhance standards of services, fee-based

income & strive to achieve greater cost efficiency & staff productively.

Ensure sustainable & steady growth.Achieve long term goals.

NCC Bank Limited

Customer Life Time Value:

NCC Bank Limited

Ways to increase to CLV

Treat new customers like VIP:

With different discounts, avenues or even just a simple “Thanks for trying us”

Keep in touch with customers:

With timely emails, text messages and social media posts.

Give customers a reason to come back soon:

With enticing deals that have an expiration date Implement modern rewards system:

To boost up customer’s frequent visits Treat repeat customers like King:

To motivate to work as brand ambassador for the bank.

NCC Bank Limited

Recommendations Non- Performing Loan (NPL) must have to be

reduced and become cautious about disbursement of loan by fulfilling all criteria.

A high voltage recovery team will be needed to recover the large classified loans.

Diversification of loans and advances should be ensured specially concentrating on SME and other niche markets.

Proper steps will have to be initiated to maximize the share holders’ equity and to build a strong share value image.

To better communicate the NCC Bank’s products strategic promotion tools should be initiated.

NCC Bank Limited

Recommendations (Cont)

Exposure in retail banking will have to be increased. To build a strong brand, Branding strategies will have to changed

and rebranding tools must have to be initiated as soon as possible. Should concentrate on financial inclusion seriously to increase the

market share. Aggressive banking must have to be discouraged. If possible, Islamic banking products are suggested to be

launched. Management must have to be cautious about Money Laundering

issues, fraud and forgeries and scams. Weakness of Core Banking Software will have to be addressed

and mitigated soon and if possible a new Core Banking Software will have be launched to continue smooth flawless banking

NCC Bank Limited