Part 2

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How Public Relation Adds Value to Banking Industry: A Case Study on Al-arafah Islami Bank Limited, Badargonj Branch
Chapter-01 Highlights
1. Introduction
1.1 Background of the study
1.2 Difference between Public relations (PR) & Advertising

1.3Problem discussion
1.4 Public relation (PR) in service firm
1.5 Public Relation (PR) in banks
1.6 Reasons for choosing this topic
1.7 Rational of anthesis program
1.8 Objectives of the study
1.9Limitations of the Study:
1.10 Scope of the Study
MD. ABU JAID, ID: 021308040

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Introduction
This thesis report is prepared for fulfilling as a requirement of the MBA program. On this
regard I have been posted in Al-arafahIslami Bank Limited (AIBL), Badargonj Branch for
3-month duration from 01-12-2016 to 01-03-2016 and regular supervised &advised by the
course teacher to submit my practical learning in written form through a report. My thesis
topic is How public relation (PR) adds value to banking industry in Bangladesh: A case
study on AIBL Badargonj Branch. In this initial chapter the report will be presented with
background of the study, meaning of public relation, importance of public relation in
banking industry, tools of PR used by AIBL, rational for thesis program, reason for chosen
this topic. These help to clear about my topic properly.
1.1 Background of the study:

In recent time, increasing competition in the banking sector has forced bank to become more
aware of price , communication, to build long-term sustainable relation & costs which has
resulted in a shift in the promotion mix to a greater use of public relation(PR) tools that are
cost effective in reaching the customer (Boyd et.al. 1998). To do this, a company needs
to get and maintain a high amount of credibility in front of its customers. At the same
time, modern marketing has been accused to be spending increasing amounts of resources in
their public relation activities, which has resulted in products and services with highly
accepted by the customer. This promotional tool has gained importance in recent times, with
its feature to lower promotion costs and to increase promotion credibility. It is also
perceived as both cost effective and highly credible (Williams,1988; Kitchen
&Papasolomou, 1997).Although promotional activities (advertising, sales promotion,
personal selling & public relation) of bank is very much important for attracting & keeping a
number of customers. Public relation plays a vital role in banking sector for building long-
term sustainable relationship. So we can define public relation by the following way
Public relations is non-paid stimulation of demand for a product or service of bank.
It is a communication between the organization and the public to maintain good
relations. Public relations, also known as PR, is defined as a set of communications
techniques which are designed to create and maintain favorable relations between an
organization and its publics (Jefkins, 1978. Proactive PR can be divided into a proactive
and a reactive category. (et.al.2003). PR is concerning the companys marketing
objectives. It is offensive, opportunity seeking, and a method to communicate brand
merits typically used in combination with other promotion tools. Reactive PR is used in
response to outside influences. It is under taken as a result of external pressures and

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challenges brought by for example competitive actions, shift in consumer attitudes or
changes in government policies. With reactive PR a company typically deals with
changes that have negative consequences, Kotler et. al. ( 2005) state that although
public relations still captures only a small portion of the overall marketing budgets
of most fir ms, public relations is an increasingly important brand building tool.
Research has found that advertising does not build brands, but public relation does
(ibid.). The practitioner of PR has many tools, which can be divided into two
categories: controlled media and uncontrolled media. Controlled media include
various activities such as, speeches, corporate advertising, in-house publications, and
visual presentations that create product and company publicity. The sponsoring
organizations pay for the media and in return, get total control over how and when
The message is delivered.
Uncontrolled media include press releases, press conferences, and media tours. These are
the primary channels to deliver public relation messages to various Medias. Organizations
control the original form and content of the release and content on media tours.
However it is the media which decide what to present and how to do it. What the
audience finally sees is not necessary what is stated by the organization. The most
recent electronic media is categorized as semi-controlled. Corporate websites are
controlled by the company, but other web sites like chat rooms and forums set up by
critics a e not controlled. Special events and sponsorship s are initiated by the
companies, but participation by the press and other important publics is not under
control of the sponsoring company. Another important semi-controlled media is
word d of mouth, where the initial message often can be designed by the
organization (Wells et. al. 2003, Kotler et. al. 2005). As with other promotion tools and
marketing activities, objective have to be set, messages and media vehicles have to be
selected, and implementation of the PR plan with a follow up evaluation of the
activities have to be done (Kotler et.al. 2005) . To gain a competitive advantage, an
ability to monitor and evaluate the activities becomes critical for most PR
practitioners (Phillips 2001). Tracking of the outputs; how many news releases lead to
stories in media, and outcome; attitude or behavior change, is necessary to prove the
effectiveness of the PR program to be able to learn and fine-tune future campaigns.((Wells
et.al. 2003).
1.2 Difference between Public relations (PR) & Advertising

The communication between a company and its customer, also known as promotion, is a
mix of tools that can be utilized in the marketing communication. Public relation activities
are an important part of this mix ( Kotler& Armstrong, 1994). Promotion is used by
organizations to communicate with customers regarding their product offerings, and
also to ensure that customers are aware of the available products (Rowley, 1998. As
much as public relation works to strengthen advertising component, there is also

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one obvious difference between advertising and PR. Advertising controls the overall
message of the organization and build s visibility, while public relations reaches in
and provides the advertising message with credibility and trust (ibid.). While marketing
builds brand, PR amplifies brand awareness. The trouble is that while PR and marketing
are two sides of the same coin, in many companies the disciplines fail to cooperate. There
is often also a failure to distinguish where marketing ends and PR starts. If people in the
community are asked to mention five competitors in the same business and they do
not mention yours, probably the competitor s use PR more effectively(Lynn, 1999).
PR is arguably the broadest of the marketing communication disciplines, involving
a wide range of activities and specializations used to deliver corporate and brand
messages. PR has developed from efforts focused on selling products to a corporate
advisory role. As a result, PR activities can be classified as long-term, brand building
options. (Barnes & Schultz, 1999).Usual public relation tools are web sites, publications,
speeches, publicity in newspapers, radio and television. (Boyd et.al. 1999).
1.3Problem discussion
Lages&Simkin (2003) present PR as an emerging science discipline and argue that
PR research is in need of developing concrete measurement tools which will allow
empirical evaluation and clearly identify its driving forces. The on-going
conceptualization is also moving PR more to a management discipline instead of its
earlier label as a communication activity. According toBroom et.al. (1997) PR is still
clearly lacking in definition and conceptualization. Without clearly explained concepts,
researchers have a tough work conduct empirical observations and construct
meaningful theory. Presumably for this reason, the majority of past research in the
area of PR is descriptive leaving a gap in explaining the actual activities observed in
the business world.Broom et.al. (1989) argue that journals in PR are not responsive
to the interest of practicing professionals and that publications provide little help to
students, teachers, practitioners and managers to understand and utilize research in
PR. There is relatively little cross-situational, theory building research to be found. More
recent research has shown some improvement in banking sector. The problem in the area
of PR seems to remain because it is not quit easy to define PR & perform accordingly.
1.4 Public relation (PR) in service firm

When marketing services that are both intangible and hard to differentiate,
establishing trusting relationships is one key objective. According to Merenda (2004),
nothing will establish trust more than credibility. This is done by enhancing demand for
the organization s services. The ultimate way to market a service is to promote it by
advertising, and then support the arguments by PR to build credibility (Beavers-Moss,
2001). Building credibility and trustworthiness are main issues in PR.The existing research
in the area of PR as a trust enhancer is based on data from different industries.
Studies can be seen in service organizations in various markets. But there is still
shortage of research in many specific industries. For exampleSaparito et.al. (2004)

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have investigated customer orientation and manager interface in trust building between
banks and its customers. They recommend future researchers to look into other
banking activities important for developing trust, such as PR. This research
recommendation explain s the significance of conducting research in the specific
industry of banking, and further states the importance of this thesis direction.
1.5 Public Relation (PR) in banks

Earlier research shows that PR is one of the most important parts when
considering the promotion mix in the banking industry. The nature of the business with
a need of high levels of trust, explains the importance of public opinion to be
successful. The banks most effective tool to monitor and manage this opinion is
through extensive use of PR activities. Recent research also shows that the banking
industry has been caught in a negative trend regarding reputation, which could have
been avoided through PR activities.
In the banking industry services provided are to a high degree similar , which makes it
hard to make a comparison between banks and their offerings. Therefore in banking,
credibility and value is mainly gained from the organizations reputation. It is also
argued that reputation is the most valuable asset of a bank ( Beavers-Moss, 2001).
As stated by Dolphin (2004), corporate reputation is a fast developing area clearly
gaining in importance for management and scholars. Due to the obvious importance of
PR activities in the banking industry, and because existing research does not fully
describe the PR aspects continuously handled by banks to build upon their reputation,
our aim in this study is to shed more light over the PR activities handled by banks.
Some PR activities in banking have been studied internationally in different countries,
but preliminary investigations showed that no one has researched the various aspects
of PR in AIBL.
1.6 Reasons for choosing this topic

In ancient period Marketing and public relations were not necessities because competition
wasnt as fierce. Banks could not think about loyal customers. Bank performs activities by
the personal interaction of bank employees to their customers. Though promotional mix
(sales promotion, personal selling, publicity, public relation) of bank is important, Public
relation is also very much important communicating, building long term sustainable
relationship, creating loyal customers etc .Due to absent of its bank may & must lost the
opportunity to provide a personal touch with customers To achieve this, banks are
investing in marketing and public relations to promote their offerings and corporate brand(
Rick Keating). For this reason I have chosen this topic.
1.7 Rational of athesis program

Due the intense competition in the job market, as a marketing guise I should have obtained
some basic practical experience. So anthesis program creates the Opportunity forhands-
on experience. While I may gather a great deal of information in my courses, there is no

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substitute for direct experience in a professional environment. Thesiss allow students to
gain direct experience.
It is also creates the Opportunity to sample various career options. It encourages eligible
students to do multiple thesiss for the purpose of sampling different career areas. This
enables students to find out where they might fit best in a professional environment. The
thesis allows opportunities for the development of practical skills in contexts where
professional criticism is both immediate and constructive. It also furnishes me with
opportunities to observe and understand connections between coursework and skills
needed to perform effectively in a given profession. Finally, thesiss aid in the
identification of knowledge and skills essential to doing well in a particular profession.
Occasionally thesiss lead directly into employment opportunities. Although this is more
the exception than the rule, thesiss certainly provide a student entry into a professional
network. Contacts made through the thesis can be invaluable sources of information for
securing eventual employment. So anthesis program plays a vital role in field of practical
learning as well as job searches.
1.8 Objectives of the study

The following objectives of the study
This research which is going to be conducted will focus on fulfilling the following objectives:
To Know about potentiality of Shatoranji

To know about the current situation of Handicrafts business as well as how it can
get opportunities as small & medium enterprises.
Enable to provide more value added services at a reasonable price and at the same
time to establish an efficient value chain network.
Identifying the major opportunity for Handicrafts business
1.9Limitations of the Study:

The main limitation here is as an internee I could not share all the information every time
for the business internal security. There are some other limitations these limitations are as
follows:
The major Problem was time constraints. The duration of my thesis Program was only
three months. But this allocated time is not enough for a complete and fruitful study.
Shatoranji is a sophisticated business sector. So it is not interested to provide me
confidential data. As a result in my report there is a confidential data limitation.
Bank is very busy organization in comparison to others. There is rush of people for
about whole the day and the officers have to transact with them. So it is very tough and
sometimes burden for them to allocate extra time for an Internee.

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The bank has very little adequate quality of readymade data and information. I have to
find out different types of information from their files and other manuals. It was very
much difficult and time consuming.
1.10. Scope of the Study

The scope of the study will be limited to Public relation program practices on Al-
arafahIslami Bank Limited. This thesis report contains my topic that is How public
relation adds value in banking industry: A case study on AIBL Badargonj Branch. That is
why I have tried to include the following topic, meaning of public relation, PR in banks,
tools of PR, tools PR used by AIBL, public relation practices in AIBL, meaning of
banking, over view of banking industry, role of PR in banking, over view of organization
(i,e) product & services, mission, vision & performance, research methodology, data
findings & analysiss, recommendation & conclusion as well as competitive analysis etc..
That is confined to of Al-arafahIslami Bank Limited

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2.Literature review
2.1 Meaning of Public relation
2.2 Role & objectives of PR
2.2.1 Defining publics

2.2.2 PR: Objectives and Strategies
2.3 Proactive PR versus reactive PR
2.4 Huttons framework for defining public relations
2.5 Huttons hierarchy of public relations
2.6 Types of Public Relation
2.7 Common Public Relation Tools and Technique.
2.7.1 Wells et al (2003) Public Relation Tools
2.8"Seven Cs of Communication for making effective Public Relation
2.9 The Importance of the Four Models of Public Relations

2.10 The PR toolkit
2.11 Public Relation: Effectiveness and evaluation
2.11.1The Effectiveness Yardstick model
2.12 Corporate reputation and PR
2.12.1 Trust and credibility
2.12.2 Corporate reputation
2.12.3Public relation in banking industry

2.13Defination of Banking
2.14 Banking industry in Bangladesh
2.15 Banks in Bangladesh
2.15.1 State-owned Commercial Banks of Bangladesh
2.15.2 Private Commercial Banks in Bangladesh:
2.15.3 Foreign Commercial Banks in Bangladesh
2.15.4 Specialized Development Banks in Bangladesh
2.16 Top Largest Banks in Bangladesh

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2. Literature review
In this chapter literature relevant in the area of PR is reviewed and presented. The
theories connected to the research area will be reviewed and presented in a
conceptual framework, which will clarify the main topic to be studied and aid data
collection.
2.1 Meaning of Public relation

Public relations is the management function which evaluates public attitudes, identifies
the policies and procedures of an organization with the public interest, and executes a
program of action to earn public understanding and acceptance ( Hutton, 1999). Lages and
Simkin (2003) propose that PR scholars conceptualize PR as a management discipline,
which is a changeform the traditional view of PR as mainly a communication activity.
Other authors referred by Lages and Simkin (2003) agree with Hutton (1999) and
defines PR as the management of communication between an organization and its
publics; and emphasize: this definition equates public relations and communication
management. PR is also defined as the management function that identifies,
establishes and maintains mutually beneficial relationships between an organization
and the various publics on whom its success or failure depends. Further, Lages and
Simkin (2003) define PR as relationship management, which implies that the focus of
public relations is the management of an organizations relationships with its publics
through the four step management process of analysis, planning, implementation and
evaluation. In this context PR is used to communicate strategically.
2.2 Role & objectives of PR

The research area of PR is vast and wide with numbers of definitions regarding the
term PR and what it actually involves. People working with PR tend to view their
activities as having a strategic impact, while many marketers views PR as only a
tactical ingredient of the Promotion mix. This definition points out that PR should be
planned and organized similarly as production, sales and advertising programmes.
The principal objective, mutual understanding means that the PR practitioner seeks to
understand other people and their attitudes, as well as to create an understanding of his
organization and its people, policies, products, or services. Such interaction is the
essence of communication. By the term objective, the author means that the system of
management by objectives is implemented to deliberately planned and sustained PR.
Also a separate PR strategy canand should be planned, budgeted and executed alongside
marketing. Ideally this should be part of a complete management system, using PR to
achieve company objectives ( ibid.).

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Worcester (1997) emphasizes the importance of identifying the organizations important
publics. Every bank should under take careful evaluation of the audiences it must
deal with in order of priority. In many financial institutions for example customers
often hold this position. Knowing accurately who to tar get first means that
expenditure decisions can be based on relevance. Beaver s-Moss (2001) states that after
identifying thevarious publics of a bank, relationships should be established according to
ever y groups needs and wants. Organizations are recommended by Wells & Spinks
(1999) to establish ongoing communications with the public community in whole.
Schultz & Barnes ( 1999) suggest instead that the relationship with specific publics
should be emphasized. After deciding if the organizations publics are going to be
defined wide or narrow, companies can utilize traditional segmentation bases such
as Geographics, demographics and psychographics. Other tools can also be used
such as covert power segmentation, which involves identifying persons within a
community who exert influence on a variety of issues or decisions. Reputation
segmentation deals with identifying people who are influential within social network.
2.2.2PR: Objectives and Strategies

Dolphin & Fan (2000) discuss if PR is seen as a strategic function by corporate
management. Their research indicates that a communication strategy is essential for
any organization. It needs to be managed and formulated by the information director in
close cooperation with the Executive team. When shaping PR strategy, considerations
must be given to the nature of the organization; to its vision, mission and to its key
audiences. The role of the information director is to act as a bridge between his
organization and its audiences, and in this way create or sustain the corporate image
or reputation. Obviously, PR has a key role to play in the strategic planning of an
organization, and should therefore be closely linked to the organizations board
room through an information director (ibid.). Nakra (2000) agrees with this view, and
states that PR activities must be involved early in the process when developing
strategies for building and maintaining the corporate image and reputation. Reserving a
seat at the corporate board room tables for PR executives, and involving them in
strategy development, would be a logical first step. jefkins (2000) describes the
ideal organization structure with the PR department as independent, directly
responsible in front of the CEO.However if the PR executive is positioned in the
marketing, advertising or sales promotion department instead, the use of PR can get
strictly limited.According to Lages&Simkin (2003), the positioning of PR as a
management discipline implies, that the PR activities are broader than
communication techniques and broader than specialized PR programs, such as media
relations. There are also arguments that PR is not efficient when practitioners master
the technical skills without the understanding of when and why to use PR to make
communication more competent for organizations (ibid. ).
Most organizations realize the necessity for effective communication with many
audiences, such as its customers, clients and employees. However, many organizations
fail to notice the importance of good communication with the community (Wells & Spink,
1999). Lynn ( 1999) argues that PR activities can clearly increase economic value f or
banks because it creates trademark and brand awareness in the community. Hon ( 1998)

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points out that there is tremendous variability in organizations explanation of PR s

goals and objectives, perhaps reflecting the diversity of organizations represented.
Each organization divides its responsibilities differently, and not surprisingly, priorities
tend to reflect the mission of the organization. Some practitioners mention
communication goals that increase sales and revenue, and also bring in new business.
Others talk more about PRs r ole in enhancing the image of the organization and
disseminating positive messages. Hon (1998) discusses further that most of the
companies in her research said that their PR department does have written, quantifiable
goals and objectives, although several acknowledged that this Systemization happened
somewhat at recently. Other statements were that PR goals and objectives have to be
strategic, meaning that public r elations goals and objectives must be tied directly to
organizational goals and objectives. The findings by Hutton et.al (2001) is in line
with Hon (1998) and identifies widely disparate views of the purposes of PR, and
also confirms that the diversity of PR strategy continues to be a major issue. Different
objectives and philosophies may be appropriate for different companies, industries or
business environments (Hutton et.al. 2001).
According to Wells et.al. (2003) PR objectives are designed to make changes in the
publics knowledge, attitudes, and behaviors related to a company, brand, or
organization. Usually these objectives focus on creating credibility, delivering
information, and building positive images. Typical PR objectives include:
Creating a corporate brand
Positioning or repositioning a company or brand
Disseminating news about a brand, company, or organization
Changing stakeholders attitudes, opinions, or behaviors about a brand or company
Creating buzz - word of mouth
Involving people with the brand (ibid.)
Shaping or redefining a corporate reputation
Providing product or brand information
2.3 Proactive PR versus reactive PR

PR can be characterized either as proactive or reactive. Proactive PR is dictated by a
companys objectives. It is oriented offensively rather than defensively, and
opportunity seeking rather than problem solving. The major role of proactive PR is
to promote the organizations products and services. Integrated with other
promotional activities, proactive PR give a product or service additional exposure,
newsworthiness, and credibility. The last factor, credibility, large accounts for the
effectiveness of proactive PR. By comparison, reactive PR describes the conduct of
public relations in response to outside influences. It is undertaken as a result of
external pressures and challenges brought by competitive actions, shifts in consumer
attitudes, changes in government policy, or other external influences. Reactive PR
typically deals with change that has negative consequences for the organization, and

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attempts to repair a companys reputation, prevent market erosion, or regain lost

sales. (Shimp, 2000).
2.4 Huttons framework for defining public relations

Hutton (1999) has developed a three dimensional cube ( figure 2. 1) to provide a framework
by which to analyze PR roles. There are three dimensions that explain the substantive
differences among the various orientations or definitions of PR; interest, initiative and
image.
Figure 2 .1 Huttons Three-Dimensional framework
Source: Huttons own research (1999)
Interest : The interest dimension can be described as the balance of intended

effects. It describes to what degree PR functions are focused on client interest versus
public interest. I n other words, is the focus mainly on the organizations direct
customers or is the focus on the public in general?

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Initiative: The initiative dimension explains to what extent the PR function is

reactive versus proactive. This can be measured by PR activities designed to
predict and help to shape up emerging organizational issues
Image : The image dimension describes to what extent the organization is
focused on perception versus reality, or image versus substance. This dimension
represents the general focus of an organizations philosophy, thoughts and actions.
When PR activities are analyzed in the context of this framework, there appear
to be six relatively distinct orientations of PR practice: persuasion, advocacy,
public information, cause-related public relations, image-reputation management, and
relationship management networks.
Persuasion : Persuasion includes the philosophies of PR that are proactive and

oriented toward persuading audiences to think or act in the way that benefit the
organization. PR programs or campaigns that focus on promotion or to create
consent fall in this category, distinguished from each other primarily by their
strategic choice of tactics rather than their basic purpose. For example a promotion
campaign that utilizes media publicity might be using an agenda-setting style of
persuasion by attempting to place the client-organizations product on consumers
mental agendas, with the goal of increasing awareness and sales of the product. (ibid.)
Advocacy : This category is similar to persuasion in its intention, persuading
audiences to think or act in ways that benefit the organization, but different in its
level of initiative and in the fact that it arises out of controversy or active
opposition. The function is to serve the role of def ending the organization in the
court of public opinion, rather than a court of law. The presence of controversy
or active opposition usually dictates the type of strategy and tactics used, and the
reactive nature e of advocacy public relations means that a PR counsel or function may
not exist until triggered by a crisis or other catalyst. I n addition to that, the focus of
advocacy is often on persuading relevant audiences to think or act in certain ways.
(ibid.)
Public information: Public information refers to the style of PR in which an
organization serves primarily as an educator and information provider. Examples
include industry trade associations and other member service organizations, along
with some government agencies that perform similar functions. (ibid.).
Cause related public relations : Cause related PR is similar to persuasion in its
intention, to persuade the audience to think or act in specific ways. It is similar in its
level of initiative, usually proactive. It is similar to advocacy, in the way that it may be
reactive and nonexistent until triggered by a public event. In other ways it is the
complement of advocacy, as long as it tends to serve a broader public interest
rather than any special-interest group or individual. Cause related PR is often
distinguished by its need to highlight strong but unorganized publics and media,
trough lobbying and publicity. Examples of groups or organizations that practice
cause related PR include for example the Red Cross organization and Amnesty
International. The corresponding metaphor for cause- related PR is generally crusader.
(ibid.)

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Image/reputation management: This role focuses on the image or reputation of the

organization, as measured by its popularity or value as a supplier, buyer, partner,
employer, lender, citizen or investment. Image/reputation management looks
primarily to publicity, spin control and the creation and manipulation of symbols
as its primary tactics. It has grown in importance recently, and has deep roots
in the practices of early PR pioneers. A distinction might be made between image
and reputation management to the extent that reputation could be considered less
superficialthan image, with a correspondingly greater emphasis on reputable
behavior as the foundation of a good reputation. (ibid.)
Relationship management: Relationship management refers to the practice of PR
as an exercise in identifying mutual interests, values and benefit between a
client-organization and its publics. While acting primarily on the clients behalf,
such an approach to PR seeks to operate in behalf of the client in a responsible
manner, in line with the public interest, in belief that public support and
consent are vital to achieving the organizations long-term objectives. The
emphasis is on mutual trust, compromise, cooperation, and whenever possible, a
win-win situation between the organization and the customer . (ibid.).
2.5 Huttons hierarchy of public relations

Hutton (1999) has suggested a hierarchy framework for primary roles, functions and
tactics/tools of PR (figure 2.2 on next page). The benefit of such hierarchy is that it
encourages scholars and practitioners to distinguish between the umbrella definition of
PR and the primary purpose and objectives of PR in a given context. It also
encourages a distinction between PRs roles, and the functions of PR, which are not
end goals in themselves but means by which a given object is achieved
Figure:2.2 Huttons hierarchy of public relations

2.6 Types of Public Relation
Media relations: Focuses on developing a relationship with media and find out
who might be interested in the organizations story. The term public r elations
is by most people associated with publicity, which indicates the importance of this
media function. The organization initiates publicity and provides appropriate
information to media. A successful relationship between a PR person and the
editor is built on a PR persons reputation for honesty, accuracy and
professionalism. If this reputation is tarnished or lost, the PR person cannot

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function effectively as a liaison between a company and the media. (Wells et.al.
2003)
Employee relations : Employee relation programmers communicate information to
employees. The function of employee relations belongs both to PR and human
resource management. These kinds of programmers are often called internal
marketing. (ibid.).
Financial relations : Financial relations includes all communication efforts aimed at the
financial community, such as press releases sent to business publication s, meetings
with investors and analysts, and annual reports which the government require of public
held companies. (ibid.)
Corporate relations : Corporate relation programs focuses on organizations image and
reputation. The goal is to persuade the public to perceive the company in a positive
light. According toWells et.al. (2003) the public relation expert Fraser Seitel has
stated that it takes a great deal of time to build a favorable image for a
corporation but only one slip to create a negative public impression. The goal of
reputation management in a corporate relations program is to strengthen the trust
that stakeholders have in an organization. Since corporate reputation is a perception,
it is earned through deeds, not created by advertising. (ibid.)
Public affairs : Focuses on corporate communication with governments and with
the public on issues related to government and regulations. Issue management is
another term for this function. In addition to government relations, public affair
programs also monitor public opinion about issues central to the organizations
interest and develop programs for communicating to, and with the public about
these issues. (ibid.)
2.7Common Public Relation Tools and Techniques: In order to build a

relationship with the target audience and maintain it on a high level, PR specialists use a
variety of tools and techniques. Some of the most common ones include:
Attendance at public events: In order to attract public attention and keep it engaged
with a particular organization or an individual, PR specialists take an advantage of
every public event and the opportunity to speak publicly. This enables them to directly
reach the public attending the event and indirectly, a much larger audience.
Press releases: Information that is communicated as a part of the regular TV or/and
radio programmed, newspapers, magazines and other types of mainstream media
achieves a much bigger impact than advertisements. This is due to the fact that most
people consider such information more trustworthy and meaningful than paid adds.
Press release is therefore one of the oldest and most effective PR tools.
Newsletters: Sending newsletters relevant information about the organization or/and
its products/services - directly to the target audience is also a common method to
create and maintain a strong relationship with the public. Newsletters are also a
common marketing strategy but PR specialists use it to share news and general

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information that may be of interest to the target audience rather than merely promoting
products/services.
Blogging: To reach the online audience, PR specialists use the digital forms of press
releases and newsletters but they also use a variety of other tools such as blogging and
recently, micro blogging. It allows them to create and maintain a relationship with the
target audience as well as establish a two-way communication.
Social media marketing: Like its name suggests, it is used primarily by the marketing
industry. Social media networks, however, are also utilized by a growing number of
PR specialists to establish a direct communication with the public, consumers,
investors and other target groups.
Speeches: Since you are supposed sophisticated information technologies please it
record them to use on the required occasion.
Seminars: Organize seminars, workshop frequently & invite prospects customers,
vocal persons, leaders & intellectual etc.
Annual report: Publish annual report of your banks & use good quality paper & print
devices. Scientifically & technically annual report would you help you a lot.
Charitable donation: In tune with principle of social marketing, you are supposed to
make significant contribution to the development & welfare of the society. Please
donate where you find necessary. To be more specific when you find natural
calamities show your attitude& worth. This is likely to help you n future.
Sponsorships: A number of events are organized & should keep your eyes open &
mind active. Please dont miss to sponsor the events where a number of people from
cross section f the society are to assemble,.
Community relations: Develop community relations which would help you in
projecting your image.
Identity media: Take support of media helping you in the projection of positive
image.
2.7.1 Wells et al (2003) Public Relation Tools:
Wells et al (2003) describes three categories that divide the tools of PR, depending
on the amount of control the company has in its communication. Since the tools
whichcan be utilized in PR, are well known tactics in organizations, they are not
described in further terms.
Controlled PR
When a company can control the use and placement of their PR tools they are
utilizing controlled channels Examples of tools in this category are:
Publications: Brochures, flyer s, newsmagazines
Annual reports

17
Displays, exhibits
Product placements
Speakers
Photographs
Staged events (open houses, anniversary celebration)
Uncontrolled PR
When companies relies the use and placement of their PR to media, they are using
Uncontrolled channels. Examples of tools in this category are:
Publicity (radio, TV and print media)
News releases (print, audio, video, e-mail)
Press conferences and media advisory (media kits, fact sheets, background
Information)
By-lined articles
Talk and interview shows
Semi-controlled PR
When some aspects of the PR activities are controlled and initiated by the company, but
other Aspectsremain uncontrolled, they are utilizing semi-controlled channels. Examples of
tools in this category are:
Special events and sponsorship
Interpersonal communication
Electronic communication (web sites, chat rooms)
Word of mouth
When utilizing above mentioned tools, PR teams needs to work closely with the
marketing Department. PR tends to complement advertising activities. While advertising
is pushing a banks desired message to its markets, PR is there to sprinkle the
message with credibility. Banks often realize the importance of PR activities, but may
differ in the way they are utilized in the marketing mix. (Beavers-Moss,)

18
2.8"Seven Cs of Communication for making effective Public Relation
The "7 Cs of Communication" is a much-quoted list, first provided by Cutlip and Center
in 1952 in Effective Public Relations. The original list was a follows:
Completeness
Conciseness
Consideration
Concreteness
Courtesy
Clearness
Correctness
Various versions of this list, often modified and unattributed, are listed in many business,
communications, marketing and public relations books and courses.
1. Credibility: Communication begins in a climate of belief. This climate is built by the

performance of the sender who should reflect an earnest desire to serve the receiver.
The receiver will then have high regard for the competency of the sender.
2. Context: An advertising/communications program must square with the realities of
its environment. Your daily business activities must confirm, not contradict, the
message.
3. Content: The message must have meaning and relevance for the receiver. Content
determines the audience and vice versa.
4. Clarity: The message must be put in simple terms. Words used must have exactly the
same meaning to the sender as they do to the receiver. Complex messages must be
distilled into simpler terms, and the farther a message must travel, the simpler it
should be.
5. Continuity and Consistency: Communication is an unending process. It requires
repetition to achieve understanding. Repetition, with variation, contributes to learning
both facts and attitudes.
6. Channels: Use established channels of communicationchannels the receiver uses
and respects. Creating new channels is difficult.
7. Capability of audience: Communication must take into account the capability of the
audience. Communications are most effective when they require the least effort on the
part of the recipient.

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2.9 The Importance of the Four Models of Public Relations

James E. Grunig, public relations expert and guru, has over 20 years of experience in the
field of public relations. The early days of public relations knew no theories knew no
theories, thus little to no thought was put into communication plans, tactics, strategies, or
programs. With no theoretical foundation, public relations in many cases did more harm
that good because legal ramifications, such as libel and fraud, were not considered. This
oversight and bad judgment had dire consequences (i.e. profit loss and a tarnished
organizational image) that had to be alleviated and avoided in order to insure public
relations' survival.Grunig's research has added many new theories to the body of
knowledge that already exists. These theories have helped to improve the field of public
relations in many ways. Public relations practitioners are better able to serve the
organizational and public interest by using the best model or models listed below.
Grunig'sFour models of Public Relations

Type of
Model Name Model Characteristics
Communication
Press
One-way Uses persuasion and manipulation to influence
agency/publicity
communication audience to behave as the organization desires
model
Uses press releases and other one-way

communication techniques to distribute
Public Information One-way
organizational information. Public relations
model communication
practitioner is often referred to as the "journalist in
residence.
Uses persuasion and manipulation to influence

One-way
One-way audience to behave as the organization desires. Does
asymmetrical
communication not use research to find out how it public(s> feel
model
about the organization.
Uses communication to negotiate with publics,

Two-way Two-way resolve conflict, and promote mutual understanding
symmetrical model communication and respect between the organization and its
public(s).

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Table: 2.1The Importance of the Four Models of Public Relations
2.10 The PR toolkit:

Phillips (2001) provides a framework developed to set up and evaluate PR activities.
The author proposes a five-step approach to research and evaluation. The steps are:
1. Audit research: Audit research about the organization, products and services, and
an audit of Communications with audiences. Research can help identifying these as
well as track the Progress of the campaign and its outcome. Looking into existing
research saves time and Money. Involving senior management at this stage demonstrates
the strategic role that PR can play.
2. Objectives: These must reflect the strategic business goals of an organization. PR should
be co-ordinated with advertising, direct marketing, and sponsorship. The target audience,
the medium, the desired response and the timing should be identified.
3. Strategy and plan: Decide on level of measurement. Output measures how the
message went out and who it reached. Out-take measures to what extent the message was
remembered and under stood. Outcome measures to what degree PR activity changed
opinions, behavior or attitudes.
4. Measurement and evaluation: Measures the direction of activities. Are we getting
there, and if so, do we stay on course? If not, should we adjust tactics, strategy or
objectives?
5. Result: A review of result against the previously stated objectives: what did we
learn that can be fed back into the planning loop? What worked and what did not?
What can we re-use next time?
Lages&Simkin (2003) further support the importance of utilizing overall planning,
execution and evaluation of an organizations PR communication with both external
and internal publics.
2.11 Public Relation: Effectiveness and evaluation

As in advertising, PR effectiveness and evaluation is based on setting measurable
objectives in the beginning of the planning (Wells et.al. 2003). The ability to monitor,
measure, evaluate and plan content in its relevant context thereafter becomes critical
for most PR practice as a ground of competitive advantage (Phillips, 2001). Schmitz
(2004) states that it is as important to f follow-up measure and evaluate PR activities
as in fact to implement them. Xavier et.al (2005) put forward that there is no
general method for measuring effectiveness, instead practitioners select among an
array of different methods and models to demonstrate the effectiveness of PR
activities. Evaluation models can be categorized into those focusing on a specific process
of PR or those accommodated an integrated planning approach (ibid.).
According to Wells (2003) PR practitioners must track the impact of a campaign in
terms of output, how many news releases lead to stories or mentions in news, and

21
outcome like attitude or behavior change. Such tracking is done to prove the
effectiveness of PR programs and to learn from it to be able to fine-tune further PR
activities (ibid.). Evidently there is a lack of knowledge on how much evaluation
techniques there are, and how much it is worth to utilize them in order to provide the
organization with good evaluative information (Phillips, 2001).
To measure and evaluate PR activities initiated by the organization, Schmitz
(2004) provides two general ways to do it: Do it yourself by reading newspapers
and magazines, relevant websites, check out what is mentioned about your
organization in radio and TV. This is a very time consuming activity and therefore it
can be more effective to outsource this activity to a media-monitoring agency.
Further, it is recommended to mix own monitoring, and media-monitoring
agencies to get out as much valuable information as possible (ibid.). Following is a
guideline provided by Wells et.al (2003) with common types of evaluation
measures used in PR:
Output Production. Numbers of PR products, such asnews releases or event
activities generated.
Distribution. Number of media outlets (TV stations, newspapers) receiving PR
products.
Coverage. Number and size of clips, column inches, seconds, or minutes of
time or space.
Impressions. Media placements multiplied by circulation or broadcast reach.
Advertising value. Equivalent ad cost for time or space.
Systematic Content Analysis. Positive or valence (whether the story or
mention seems to be more positive or negative), key messages (the idea in the
story) , sources, and prominence.
Outcome Objectives achieved:
Awareness. Aided and unaided to recall the target audience.
Attitudes. Perceptions and preference or intent to buy.
Behavior. Did they do what you wanted them to?
According to Beavers-Moss ( 2001) it is important for the bank to identify what gain
is expected from the PR activities. If the goals are defined explicitly and measurably, they
are easier to achieve.

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2.11.1The Effectiveness Yardstick model

To simplify the process of measuring effectiveness in PR activities Lindenmann
(1993) has developed a straight forward set of guidelines or standards that PR
practitioners can follow to measure PR effectiveness. The guideline is called the
Public Relations Effectiveness Yardstick (figure 2.3) and involves a two- step process:
first, setting PR objectives, and then determining at what levels to measure PR
effectiveness.
Figure: 2.3 Effective Yardstick Model
Step one: setting objectives

What are the goals or objectives of your PR program? What is your PR program or
activity seeking to accomplish?
In PR, what you try to accomplish usually falls into one of these four categories:
1. You, or your organization, are trying to get out certain messages, themes or ideas.
2. You would like these messages or ideas distributed to certain key or target
audience groups.
3. Your envision distributing these messages to your target audiences via certain
pre-selected or specific communications channels.

23
4. For what you say, for how you say it, and to whom, there are certain short-
term or long-term ends or objectives you are interested in accomplishing. Based on
how and what you say and do, you would like those you reach to respond in a certain way.
Step two: determining levels of PR measurement

After setting the PR objectives, then you have to decide what exactly you want to measure.
In this guideline there are three different measures of PR effectiveness.
Level 1: Basic Level

It measures PR outputs. It examines how well PR people present themselves, how
they handle given activities or events. At this level, PR practitioner s measure the
amount of exposure their organization received in media, the total number of
placements, the total number of impressions, and/or the likelihood of having reached
specific target audience groups. To measure "outputs," PR practitioners often use content
analysis techniques to track or measure publicity placements. Or, conduct simple public
opinion polls to find out if targeted groups have been exposed to certain messages.
Level 2: Intermediate Level

This level is more sophisticated. At this level, PR practitioners measure whether or not
target audience groups actually received the messages directed at them: whether or
not they paid attention to the messages, whether or not they understood the
messages, and whether or not they have retained those messages in any shape or
form. To measure "outgrowths," practitioners usually rely on a mix of qualitative and
quantitative data collection techniques, using such methodologies as focus group s,
depth interviews with opinion-leader groups, and extensive polling of key target
audience groups either by telephone, face-to-face, or through mail.
Level 3: Advanced Level

This level is the most advanced PR measurement level. When one reaches this higher
end of the Effectiveness Yardstick, the "outcomes", such as opinion, attitude, and
behavior change are measured. To measure "outcomes", the PR practitioner needs to
rely on: techniques such as before-and-after polls; the development and use of
experimental and quasi experimental research designs; use of unobtrusive data
collection methods such as observation, participation, and role-playing; the use of
advanced data analysis techniques (such as perceptual mapping, psychographic
analysis, factor and cluster analysis, and conjoint analysis); or the conducting of
comprehensive, multi-faceted communications audits. (ibid.).
2.12 Corporate reputation and PR

When reviewing theexisting literature in the areas of trust, credibility an corporate
reputation gained by PR, it can be found that the area is not thoroughly researched.
Therefore models and theories from existing literature are hard to find. Provided
below are theories relevant to answer our research questions. When reviewing theexisting
literature in the areas of trust, credibility an corporate reputation gained by PR, it can
be found that the area is not thoroughly researched. Therefore models and theories

24
from existing literature are hard to find. Provided below are theories relevant to
answer our research questions.
2.12.1 Trust and credibility

Seal (1998) suggests that trust is based on personal knowledge of the other part in a
relationship. However trust goes beyond possessing information about each other.
Possession of information about someone does not directly correspond to trust. Trust needs
history as a reliable background and is therefore enacted in dependent relationships. Saparito
et.al. ( 2004) describe the concept of trust as; the trusting party must perceive the trusted
par try to be acting out of a commitment to the relationship that goes beyond
instrumental motive of advancing self-interest. Seal (1998) describes three types of trust in
the organizational setting;
Contractual trust means that partners keep their promises whether or not they
are based on written agreements.
Competence trust is when you have the business ability to fulfill obligations. If you f
or example are unable to fulfill your promises to repay loans because you lack in
funding, you break the competence trust.
Goodwill trust is when the company can act on the behalf of its clients
without detailed instructions
Credibility is defined as the capability to influence because of the perceived
knowledge or skills one has or is presumed to have (Budd, 1995). The collective
outcome of building trust and gaining credibility is reputation (Budd, 2001). Accor
ding to Beavers-Moss (2001) PR serve to enhance demand for products and services
through building credibility.
Managers in service industries that are not well-differentiated in terms of basic
services should recognize that well- structured and valuable communication has a
strong effect on consumer perceptions. It leads to trust, satisfaction, and loyalty.
These communications should be used as relationship-enhancers, offering the customer
useful and needed advice and information, packaged in such a way that the customer
finds it easy to understand and pleasant to absorb. (Ball et.al. 2004).
2.12.2 Corporate reputation

According to Budd ( 2001) the managing of corporate reputation is a very delicate
and sensitive process. You are not dealing with a tangible product but with a
judgment, an attitude, a sense, a feeling rooted in a per sons mind. Good reputation is
hard to build and cannot be bought. It is also very fragile, and easy to loose. Hutton
et.al.( 2001) argue that companies with extensive corporate communication strategies were
more likely to have strong reputations. Specifically, the more companies focused on
managing relationships with non-customer publics or reputation management as their
guiding communication philosophy, the more likely they were to have a strong reputation.
Dolphin (2004) argues that any communication that makes an organization more
transparent enables stakeholders to appreciate its operations more clearly, facilitating a
better reputation. The intangible equity in a corporate reputation is an organizations most

25
enduring and lasting asset. The reputation also wins a competitive advantage for the
organization in an increasingly crowded marketplace. Therefore a good corporate
reputation is an asset of immense value. However, it is intangible and both difficult
to measure and difficult to replicate by other companies. The reputation is a highly
visible signal of an organizations capabilities and reliability providing information
about future performance (ibid.).
Research has shown that a positive reputation does contribute to corporate success.
This has been recognized and utilized by senior managers since the mid-1980s, to
build and sustain favorable corporate reputation. The management of reputation has
also developed into a major tool for the communication strategist, with the focus on the
role of gaining the support and approval of important audiences. This is a value creating
strategy in one way or another. Today there is no doubt that corporate reputation is
given more attention than ever before since marketers and communicators are
concerned about their companies reputations and advantages brought by good
reputation (Dolphin, 2004). The loss of reputations also seen as a larger problem than
loosing money for an organization (Hutton et.al. 2001).
Dolphin (2004) states some clear differences between corporate reputation and
corporate identity that is often used interchangeably by both management and
scholars, which causes confusion. Reputation is gained over time and may not be that
open for rapid manipulation, an image can, unlike from reputation, clearly be created
and manipulated in a short period of time. Budd (1995) also confirms that corporate
reputation may not be easy to change within a short period of time even though extensive
communications with the public is utilized.
Hutton et.al. (2001) define reputation management as an emerging business function,
resting on the foundations of what traditionally is termed as public relations,
clearly relating the two activities to each other. Advocates of reputation management
state that the new term will act as a galvanizing concept that will enhance public r
elations stature, perceived value and centrality within organizations.
Reputation management is a general phenomenon that does not need to occur in response
to a reputation problem. Organizations with poor reputations may engage in actions
that enhance its reputation, but also organizations with a favorable reputation may
engage in actions designed to sustain or enhance its reputational standing (Weiss
et.al. 1999). According to Nakra (2000) public relations practitioner s must develop
the ability to manage corporate reputation by taking a "360 degree" view and
communicate well with all stakeholder s with a unified message.
With todays ongoing globalization and increasing competition, bank marketers must
know how to protect and uphold their reputation. Considering the intangible nature of
bank products and services, credibility and value are gained mainly from the
organizations established reputation. Good PR can enhance a banks marketing and
improve the institutions overall competitiveness (Beavers-Moss, 2001). The corporate
reputation is especially important when acting on a market where the products and
pricing is highly similar and hard to differentiate.
A sound reputation must be the foundation on which to position an undifferentiated
product. An international bank comments that, banking is a reputation business,

26
which indicates the importance of reputation in the specific industry. The

communicator at this bank had clearly understood his role as one of guarding the
reputation of the organization (Dolphin, 2004) .
Dolphin (2004) also describes a case from a large international bank, which was
identified as using a hard-nosed strategy, when not writing of third world debts, with bad
reputation for the bank as a direct result. The management of the bank instead utilized
PR activities with extensive sponsorship programmes to repair damages in the corporate
reputation.
Image and reputation is described as one of the most important factors when
analyzing customer perception of service quality in the banking industry.
Trustworthiness, tradition and reliability can build a favorable image that can positively
influence the perception of quality, Value and satisfaction (Kangis & Voukelatos,
1997). These factors helps to influence customer loyalty, which is critical to banks and
service firms because customer defections can have more to do with a service
companys profits than scale, market share, and many other factors usually
associated with competitive advantage (Saparito et.al. 2004). Beavers-Moss (2001)
also discusses the importance of public relations when managing customer loyalty
aspects.
2.12.3 Public relation in banking industry:
In the banking industry services provided are to a high degree similar , which makes it
hard to make a comparison between banks and their offerings. Therefore in banking,
credibility and value is mainly gained from the organizations reputation. It is also
argued that reputation is the most valuable asset of a bank ( Beavers-Moss, 2001).
Due to the obvious importance of PR activities in the banking industry, and because
existing research does not fully describe the PR aspects continuously handled by
banks to build upon their reputation, our aim in this study is to shed more light
over the PR activities in banking industry. Through understanding the importance of PR,
many private commercial banks in Bangladesh practice PR activities & also keep separate
department.
2.13Definition of Banking
Banking all functions of a bank in the course of its business may be termed as banking. In
the Banking Companies Act, 1991 (Act 14 of 1991), the word banking has been defined
to mean the accepting, for the purpose of lending or investment, of deposits of money
from the public, repayable on demand or otherwise, and withdraw able by cheque, draft,
order or otherwise. But any company which is engaged in the manufacture of goods or
carries on any trade and which accepts deposits of money from the public merely for the
purpose of financing its business is excluded from being deemed to transact the business
of banking.
Banking, transactions carried on by any individual or firm engaged in providing financial

services to consumers, businesses, or government enterprises. In the broadest sense, a
bank is a financial intermediary that performs one or more of the following functions:

27
safeguards and transfers funds, lends or facilitates lending, guarantees creditworthiness,

and exchanges money. These services are provided by such institutions as commercial
banks, central banks, savings banks, trust companies, finance companies, life insurers, and
investment bankers.
2.14 Banking industry in Bangladesh

Industry means the number or collection of firms in a particular sector. Banking industry
means number of bank exist in Bangladesh. The employment culture is changing in
Bangladesh. The following exist in the banking industry of Bangladesh
1.Islami Bank Bangladesh Limited
Islami Bank Bangladesh Limited is a Joint Venture Public Limited Company engaged in
commercial banking business based on Islamic Shariah with 58.03% foreign shareholding
having largest branch network (236 Branches & 30 SME/Krishi Branches i.e. total 266
Branches) among the private sector Banks in Bangladesh. It was established on the 13th
March 1983 as the first Islamic Bank in the South East Asia.
It is listed with Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd.
Authorized Capital of the Bank is Tk. 20,000.00 million ($ 267.02 million) and Paid-up
Capital is Tk. 10,007.71 million ($ 133.61 million) having 63,001 shareholders as on 30th
June 2011.
2. Shahjalal Islami Bank Limited
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 ten 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. Md. Abdur Rahman Sarker.
3. Dutch-Bangla Bank Limited
Dutch-Bangla Bank Limited (DBBL) is Bangladeshs most innovative and technologically

advanced bank. DBBL stands to give the most innovative and affordable banking products
to Bangladesh. Amongst banks, DBBL is the largest donor in to social causes in
Bangladesh. It stands as one of the largest private donorss involved in improving the
country. DBBL is proud to be associated with helping Bangladesh as well as being a
leader in the countrys banking sector.

28
4. AB Bank Limited
AB Bank Limited, the first private sector bank was incorporated in Bangladesh on 31st
December 1981 as Arab Bangladesh Bank Limited and started its operation with effect
from April 12, 1982.AB Bank is known as one of leading bank of the country since its
commencement 29 years ago. It continues to remain updated with the latest products and
services, considering consumer and client perspectives. AB Bank has thus been able to
keep their consumers and clients trust while upholding their reliability, across time.
5. Prime Bank Ltd.
In the backdrop of economic liberalization and financial sector reforms, a group of highly
successful local entrepreneurs conceived an idea of floating a commercial bank with
different outlook. For them, it was competence, excellence and consistent delivery of
reliable service with superior value products. Accordingly, Prime Bank was created and
commencement of business started on 17th April 1995. The sponsors are reputed
personalities in the field of trade and commerce and their stake ranges from shipping to
textile and finance to energy etc.
As a fully licensed commercial bank, Prime Bank is being managed by a highly

professional and dedicated team with long experience in banking. They constantly focus
on understanding and anticipating customer needs. As the banking scenario undergoes
changes so is the bank and it repositions itself in the changed market condition.
Prime Bank has already made significant progress within a very short period of its
existence. The bank has been graded as a top class bank in the country through
internationally accepted CAMELS rating. The bank has already
6. AIBL
Al-arafahIslami Bank Limited (AIBL) was Establish in Bangladesh on August 29 1999 as

a banking company under Companies Act 1994.On September 22, 1995. AIBL obtained
permission from Bangladesh Bank to commence its business.
The Bank offers a wide range of banking services through its 114 branches in the country,
including accepting deposits, making loans, discounting bills, conducting money transfer
and foreign exchange transactions, and performing other related services such as safe
keeping, collections and issuing guarantees, acceptances and letter of credit.
At present, the bank has 114 branches of which 39 branches are in Dhaka Division, 34
branches are in Chittagong Division, 07 branches are in Syllet Division, 04 branches are in
Rajshahi Division, 11 branches are in Khulna Division and 04 branches is in Barishal
Division & 02 branches are in Rangpur division.
All the 114 branches are computerized under distributed server environment. Another few
branches are planning to open within December 2015. AIBL has already started their on-
line, SMS and ATM banking facilities for their clients.

29
There were 52 employees in the initial stage of the bank. At present the number of
employees has become approximately 1056.The bank was started with 500 core taka. Now
its present capital is more then 1,500 core taka. The targeted depository money for savar
branch was 20 lakh taka. But the branch was able to collect deposit about 18 lakh taka in a
competitive market.
2.15Banks in Bangladesh:
The central bank of Bangladesh is named as Bangladesh Bank. The other banks which are
operated in Bangladesh are given below:
2.15.1 State-owned Commercial Banks of Bangladesh
Three Nationalized Commercial Banks are dominating the Bangladeshi banking system,
which together controlled more than 50% of deposits and operated about 3500 branches as
of December 31, 2009.
The nationalized commercial banks are:
Sonali Bank
Agrani Bank Limited
Janata Bank
2.15.2 Private Commercial Banks in Bangladesh:
Private Banks are the highest growth sector due to the dismal performances of government
banks. They tend to offer better service and products. Their name and corresponding web
addresses are given below
AB Bank ltd
BRAC Bank Limited:
Dutch Bangla Bank Limited
Eastern Bank Limited
Dhaka Bank Limited
Islami Bank Bangladesh Ltd
Pubali Bank Limited
Uttara Bank Limited

30
IFIC Bank Limited
National Bank Limited
The City Bank Limited
United Commercial Bank Limite
NCC Bank Limited
Prime Bank Limited
SouthEast Bank Limited
Al-Arafah Islami Bank Limited
Social Islami Bank Limited
Standard Bank Limited
One Bank Limited
Exim Bank Limited
Mercantile Bank Limited
Bangladesh Commerce Bank Limited
Mutual Trust Bank Limited
Al-arafahIslami Bank Limited
The Premier Bank Limited
Bank Asia Limited
Trust Bank Limited
Shahjalal Islami Bank Limited
Jamuna Bank Limited
ICB Islamic Bank
2.15.3 Foreign Commercial Banks in Bangladesh
In Bangladesh there are many foreign banks. Their name & their corresponding web
addresses are given below
Citibank
HSBC

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Standard Chartered Bank
Commercial Bank of Ceylon
State Bank of India
Habib Bank
National Bank of Pakistan
Woori Bank
Bank Alfalah
2.15.4 Specialized Development Banks in Bangladesh
Out of the specialized banks mentioned above,there are two banks named Bangladesh
Krishi Bank and Rajshahi Krishi Unnayan Bank were created to meet the credit needs of
the agricultural sector while the other two banks named Bangladesh Shilpa Bank (BSB) &
Bangladesh Shilpa Rin Sangtha (BSRS) are for extending term loans to the industrial
sector. Their name are given below
Grameen Bank, Bangladesh Krishi Bank,Bangladesh Shilpa Bank, Rajshahi Krishi

Unnayan Bank,Bangladesh Shilpa Rin Sangstha, Basic Bank Ltd,Ansar VDP Unnoyan
Bank etc.All these are the major banks of Bangladesh.
2.16 Top Largest Banks in Bangladesh
The top largest banks of Bangladesh include Sonali Bank Limited, IBBL, Dutch-Bangla
Bank, HSBC Bank Bangladesh, among others.
Sonali Bank is the largest bank of the country, emerged as the leading Nationalized
Commercial Bank by proclamation of the Banks' Nationalization Order 1972 (Presidential
Order-26).
Islami Bank Bangladesh Limited (IBBL) is a leading private commercial bank in

Bangladesh. It was awarded for several times by international & national organizations.
The Global Finance, a prestigious London based quarterly magazine, awarded IBBL as the
best bank of the country for the year 1999 and 2000. As per Bankers' Almanac (January
2001 edition) published by the Reed Business Information, Windsor Court, England,
IBBL's world rank is 1771st among 3000 banks selected by them.
In Bangladesh, HSBC is a very popular choice for customers because of the Group's
international reach and a comprehensive range of financial products and services. HSBC's
treasury and capital markets business ranks among the largest in the world and serves the
requirements of supranational, central banks, institutional investors, international and local
corporations, and financial institutions as well as other market participants.

32
Dutch-Bangla Bank is the first bank in Bangladesh to be fully automated and introduce
Electronic Banking. It has the largest ATM network in the country. This gives clients full
access to 'anytime anywhere' banking nationwide. All international and many local banks
use the DBBL ATM network for their own clients. Additionally, DBBL has the largest IT
budget in Bangladesh. It maintains the state-of-the-art Electronic-Banking Division to
oversee and maintain DBBL's investment as well as implementing upcoming projects.

33
3. Introduction
3.1 Corporate Information
3.2 Vision of the Bank
3.3 Mission of the Bank
3.4 Organizational Hierarchy of AIBL
3.5 Board of Director of AIBL
3.6 Organizational Structure
3.6.1 Senior Management
3.6.2 Internal Control and Compliance:
3.6.3 Corporate Governance
3.6.4 Executive Committee
3.6.5Audit Committee:
3.6.6 Human Resources
3.7. Products & Services
3.7.1 Product
3.7.2Deposit
3.7.3 ATM Banking
3.8.0 Services
3.8.1 Online any Branch Banking
3.8.2 SMS Banking
3.10 Prevention of Money Laundering
3.11List of the Branch
3.12 Financial Performance

34
3.13 Financial Features of the Bank
3.13.1AIBL Performance in 2012
3.14 AIBL launched a series of following Products
3.15 ICT Division of AIBL
3.16 Branch Expansion
3.17.0 Risk Management
3.17.1 Anti Money Laundering & Anti Terrorist Financing Activities
3.18.0 Research and Development
3.18.1 Management Information System
3.18.2 Green Banking
3.19.0Human Resources Management
3.20Dividend
3.21Future Outlook of AIBL
3.22 Industry Outlook and possible future Developments in the Industry
3.23 Corporate Social Responsibility (CSR) of AIBL
3.24Financial Express (FE) Report
3.25.0 Al-arafahIslami Bank Ltd Becomes Lead Sponsor of Children Science Congress
2013
3.25.2Al-arafahIslami Bank Limited (AIBL) CSR award

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3. Introduction:
Al-arafahIslami Bank Limited (AIBL) was incorporated in Bangladesh on 29 August 1995

as a banking company under Companies Act 1994 to carry on banking business. It
obtained permission from Bangladesh Bank on 22 September 1995 to commence its
business. The commercial banking activities of the bank encompass a wide range of
services including accepting deposits, making loans, discounting bills, conducting money
transfer and foreign exchange transactions, and performing other related services such as
safe keeping, collections and issuing guarantees, acceptances and letter of credit.
The company philosophy A step ahead in time has been precisely the essence of the
legend of Asian success; the bank has been operating with talented and brilliant personnel,
equipment with modern technology so as to make it most efficient to meet the challenges
of 21st century. At first in 1995 the bank incorporated as Al-arafahBank Ltd. and then in
January 01, 2009 the bank changes its name and mode of business and incorporated as Al-
arafahIslami Bank Ltd.
3.1 Corporate Information:
Name of the Company : Al-arafahIslami Bank Ltd.
Chairman : Badiur Rahman.
Vice Chairman : Alhajj Abdul Malek Mollah.
Managing Director : Md. Habibur Rahman.
Company Secretary (Current Charge) : Jb. Md. Mofazzal Hossain.
Legal Status : Public Limited Company
Date of Incorporation : 29 August1995
Date of Commencement of Business : 29 August 1995
Date of Permission from Bangladesh Bank : 22 September 1995
Date of Opening of First Branch : 25 October 1995
Line of Business : Banking
Authorized Capital : Tk.3, 600 Million

36
Paid up Capital : Tk.2, 300 Million
Date of consent of IPO : 04 June 2008
Phone : 9560229 (Hunting), 9550334,71710233 30
Fax : 880-02-9561637
E-mail : bcs@AIBLbd.com
Website : www.AIBLbd.com
SWIFT : AIBBDDH
Auditors:
Syful Shamsul Alam & Co.
Chartered Accountants
36, Dilsusha C/A (6th Level)
Dhaka-1000, Bangladesh
Phone: 7169487, 9569256
Email: syful@intechworld.net
The Law Counsel: Barrister & Advocate
City Heart (7th Floor)
Suit No. 8/8, 67, Naya Paltan, Dhaka-1000
Phone: 9349647-8
Fax: 9349866, 9567029
E-mail: l.counsel@bdonline.com
Tax Consultant
K.M. Hasan & Co.
Chartered Accountants
HomeTower Apartment (8 th & 9 th )
87, New Eskaton Road , Dhaka
Phone: 9351457,9351564

37
Fax: 8358817
Shariah Council of AIBL
Sl No.
Name
Position
Address
1Sheikh (Moulana) Mohammad Qutubuddin
Chairman Baitush Sharaf Complex
Shah Abdul Jabbar (R) Road
Dhanialapara
Chittagong-4100
2.Mufti Sayeed Ahmed
Vice Chairman Markaze Eshaete Islam
2/2 Darus Salam
Mirpur, Dhaka
3MoulanaMd. Shamaun Ali Member
Secretary 491, Wireless Railgate
Bara Moghbazar.
4.Moulana Abdus Shaheed Naseem
Member 2/C GreenValley Apartment
493 Moghbazar Wireless Railgate.
5.Mr. Mohammad Azharul Islam
Member
Lecturer, Department of law,
University of Dhaka, Dhaka-1000
Directors: Ms. Farzana Parveen

38
Ms. Badiur Rahman
Ms. Shamsad JahanMs. Atiqun Nesa.
Mr.Md. Sharif Hussain.
Mr. A. K. M. Ali Johar.
Mr.Md. Wahidul Alam Seth.
Mr. Shahidul Islam.
Mr. Mohammed Oheidul Alam.
Mohammad Qutub Uddowlah
Md. Abdul Hamid Miah
Managing Dircetor- Mr. A. A. M. Zakaria.
Board & Company Secretary- Mr. Abdul Hannan Khan.
Table-2: Board of Directors of AIBL
3.2 Vision of the Bank:
Al-arafahIslami Bank Limited aims to become one of the leading banks in Bangladesh by
quality of operations in their banking sector. The bank has some mission to achieve the
organizational goals. These are listed below:
The bank believes in strong capitalization.
It maintains high standard corporate and business ethics.
Al-arafahIslami Bank Limited extends highest quality of services, which attracts the
customers to choose them first.
Al-arafahIslami Bank Limited provides products and services that encourage savings.
Al-arafahIslami Bank Limiteds main business mission is to obtain fine position in the
banking sector of Bangladesh as well as internationally. It also emphasizes on a
reasonable return from its investment to satisfy the shareholders.
3.3 Mission of the Bank:
In the words of Al-arafahIslami Bank Limited,
Our Mission is to provide

39
Banking Services to our
Valued Clientele with
Utmost proficiency & sincerity
Reinforced by an efficient workforce
And the latest state of
The Art of Technology.
For this mission AIBL has the following objectives and goals:
Their main objective is to maximize profit, which in turn will maximize wealth.
Al-arafahIslami Bank Limited is always ready to maintain the highest quality of

services by banking technology prudence in management and by applying high
standard of business ethics through its established commitment and heritage.
Al-arafahIslami Bank Limited is committed to ensure its contribution to national

economy by increasing its profitability through professional and disciplined growth
strategy for its customer and by creating corporate culture in international banking
area.
3.4 Organizational Hierarchy of AIBL
Figure: 3.1 Organizational Hierarchy of AIBL

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3.5 Board of Directors of AIBL
Chairman- Mohammad Saiful Alam.

Vice Chairman- Alhajj Abdul Malek Mollah .
Directors: Alhajj Hafez Md. Enayetullah.
Alhajj Ahamedul Haque.
Alhajj Abdus Samad.
Alhajj Abu Naser Mohammad Yeahea.
Engr. Kh. Mesbahuddin Ahmed .
Alhajj Abdus Salam .
Alhajj Niaz Ahmed .
Md. Ashik Hossain .
Mohammed Emadur Rahman .
Mohammad Qutub Uddowlah
Md. Abdul Hamid Miah
Managing Director- Md. Habibur Rahman .
Board & Company Secretary- Jb. Md. Mofazzal Hossain .
Table: 3.1 Boards of Directors of AIBL
3.6.0Organizational Structure:
3.6.1 Senior Management:
AIBL is functioning with professional management team headed by the Managing

Director Mr. Md. Habibur Rahman. Among other senior executives currently two DMD,
One Principle(Training Center), two SEVP, fourteen SVP, eight VP, five FVP, eleven
SAVP, five AVP and three FAVP are discharging their services in progression of the
banks business.
Top management of the bank is supported by human resource strength of 483 executives
and officers. For smooth functioning of the Bank, following committees have been
formed: Management committee (MANCO) comprises of senior members of the
management headed by Managing Director of the bank. Asst Liability Management
Committee (ALCO) headed by the Managing Director, is responsible for balance sheet
risk management. The committee participate is the monthly ALCO meeting and review the
liquidity position, review rate of interest on deposit and lending, and review the ALCO
papers on presentation by treasury back office on the position of profit, deposit, advance,
cost analysis, maturity bucket of deposit & advance, balance sheet, profit and loss account
and many other issues relating to banks business and assets-liability management.

41
3.6.2 Internal Control and Compliance:
Operational loss may arise form errors and fraud due to lack of internal Control and
Compliance. AIBL has separate Internal Control and Compliance division (ICCD) headed
by a Vice President. This Division consists of 3 units, namely:
a) Audit and Inspection Unit,
b) Compliance Unit, and
c) Monitoring Unit.
3.6.3 Corporate Governance:
Corporate governance is about how corporation is running its operations to achieve its
corporate objectives. Bangladesh Bank (BB) gives emphasis on implementing corporate
governance among the financial institutions and to do that, BB emphasizes
implementation of the guidelines issued by them for improving corporate governance in
banking. Good Corporate Governance practices enhance an entitys corporate image and
market credibility, which attract capital and increase its borrowing power. These can be
reflected in the quality of financial reporting and disclosures; strength of internal control
system and internal audit function induction of professionally competent, independent
non-executive Directors on corporate Board; formation of Audit Committee; delegation of
authority to executives and staff; protection of corporate governance for strengthening
organizational strength. With a view to ensure effective participation and deep interest in
the affairs of the company and as per Articles of Association of the Company and as per
Bangladesh Bank Circular No. 16 dated March 24, 2003 the bank has set up the following
2 committees:
3.6.4 Executive Committee:
AIBL has constituted 09 members executive committee of the board as per Bangladesh
Bank guidelines to ensure corporate governance in the business of which managing
director of the Bank is Ex-officio Member. The executive committee of the board is
responsible for developing policy and strategy for smooth operations of business and
business development of the bank to ensure maximization of shareholders wealths
protecting other stakeholders interest in the company Mr. Badiur Rahman, Chairman of
the board of Directors is the Chairman of the present Executive Committee of the bank.
He is very dynamic person and leading the executive committee of the bank in a very
manner.

42
3.6.5Audit Committee:
AIBL has formulated an audit committee can play an effective role in formulating an
efficient and secured banking system. The Audit Committee has been formed comprising
three members of the Board of Directors. As per corporate governance guidelines the
Chairman of the Audit Committee should have sound knowledge and expertise in finance
& accounting or auditing. Mr. Md. Habibur Rahman, who is also a Director of the Bank, is
Convener of the committee. He is associated in banking field over long years.
3.6.6 Human Resources:

Total number of employees stood at 483 as on 31st December 2008. The bank continued
to encourage its employees to receive training and participate in various seminars and
workshop to enrich their professional skills.
Year 2006 2007 2008 2009 2010 20011 2012 2013 2014 2015
No. 467 423 318 412 483 531 613 665 700 923
Employees
Table-3.2: Human Resource trends.
3.7. Products & Services:
3.7.1 Products
Loan Schemes:
Term Loan
Loan (General)
Secured Overdraft (SOD)
Transport Loan
Cash Credit (C.C)
House Building Loan
Payment Against Document (PAD)
Loan against Imported Merchandise (LIM)
Loan against Trust Receipts (LTR)
Consumer Finance Scheme
Hire-Purchase Scheme

43
Financial Products:
3.7.2Deposit Rate(%)
1) Al-Wadiah Current Deposit N/A
2) Mudarabah Savings Deposit 7.00%p.a
3) Short Term Deposit 6.00%
4) Mudarabah Term Deposits:
For One Month 8.00%
For Three Months & above:
Up to 50 Lac 10.00%
Above 50 Lac 10.00%
5) Mudarabah Special Notice Deposits (SND)
(On monthly average balance)
Up to 10.00 Crore 7.00%p.a
Above 10.00 Crore 7.7.5%p.a
6) Non-resident Foreign Currency Deposit
7) Resident Foreign Currency DepositScheme:
1) Mudarabah Monthly Profit Scheme (MMPS)
2) Mudarabah Monthly Savings Scheme (MMSS)
3) Mudarabah Double Deposit Scheme (MDDS)
3.7.3 ATM Banking:
Al-arafahIslami Bank Ltd. has implemented successfully Automated Teller Machine

(ATM) card transaction from June 25, 2008. Through Automated Teller Machine (ATM)
/Debit card, customer can avail the facilities like withdrawal money, balance inquiry and
purchase goods from Point of sale (POS) using all banks ATM booth except Islami Bank
Ltd. &Dutch Bangla Bank Ltd. ATM Booth and POS.

44
3.8.0 Services:
3.8.1 Online any Branch Banking:
AIBL have set up Wide Area Network through Radio, Fiber-Optics & other available
communication media systems to provide any branch banking to our customers of one
branch is now able to deposit and withdraw money at any of our branches. All Branches
are included in our Wide Area Network. No TT/DD or cash carrying will be necessary.
3.8.2 SMS Banking:
Al-arafahIslami Bank Ltd. has officially launched SMS banking service from December
17, 2007.Locker Service :For safekeeping of customers valuables like important
documents and goods like jewelries and gold ornaments, AIBL Locker Service is available
in most of the Branches in urban areas.
Utility Bills:
The utility bills received following Branches
Branch Name Bills Type
Mohakhali, Dhaka DESCO
Topkhana, Dhaka Under process (Electric bill)
Gulshan , Dhaka Titas Gas
Shafipur , Gazipur Dhaka Pally Biddut Shomitty
Keranihat, Chittagong Pally Biddut Shomitty
3.9 Prevention of Money Laundering:
Money laundering risk is defined as the loss of reputation and expenses incurred as
penalty for being negligent in prevention of money laundering. For mitigating the risk the
bank has designated Chief Compliance Officer at Head Office and Compliance Officer at
branches, who independently review the transactions of the accounts to verify
suspicious transactions. Manuals for Prevention of Money Laundering, KYC and
Transaction profile have been introduced. Training has been imparted to Executives,
Officers and staff for developing awareness and skill for identifying suspicious
transactions and other Money Laundering related activities.

45
3.10.0List of the Branch:
Dhaka Division: Chittagong Division: Sylhet Division:
Dilkusha Branch Jubilee Road Branch Sylhet Branch

Mohakhali Branch Probortok More Bishwanath
Bongshal Branch Branch Branch
Dhanmondi Branch Nozu Miah Hat Amborkhana
Gulshan Branch Branch Branch
Mirpur Branch Kerani Hat Branch Moulovi Bazar
Banani Branch Bohddar Hat Branch Branch
Topkhana Road Dovashi Bazar Gobinda Ganja
Branch Branch Branch
Bishwa Road Branch Khatunganj Branch
Shofipur Branch Agrabad Branch
Motijheel Branch Lakkhipur Branch
Muksudpur Branch Ramganj Branch
Cantonment Branch
Donia Branch
College Gate Branch
Mohammadpur
Branch RajShahi Division Khulna Division:
Rangpur Division
Natore Branch Khulna Branch

Bogra Branch
Badargonj Branch
Dinajpur Branch
Rangpur Branch
Saidpur Branch
Table-3.5 Branch list of AIBL
3.10.1Proposed Branch
Anderkilla Branch, Chittagong. Eidgaon Branch, Coxs Bazar.

Hathajari Branch, Chittagong. Ukhiya Branch, Coxs Bazar.
Patiya Branch, Chittagong. Coxs Bazar Branch.
Lohagara Branch, Chittagong. Sunamganj Branch.
Chokoria Branch, Chittagong.

46
3.10.2 Branch expansion network
During the year 2004 the total number of branches of Al-arafahIslami Bank Limited stood
at 12, in 2005 it was not changed and in year 2006 it stood at 15 branches. From 2007 the
no. of Branches increased rapidly. In 2007 it was 20, in 2008 it was 29 and in 2009 it was
34& finally in 2013 it is 113. The Bank has proposed a long-term program to Bangladesh
Bank to open more branches in phases in important locations in Bangladesh.
Year Branch
2004 12
2005 12
2006 15
2007 20
2008 29
2009 57
2010 67
2011 93
2012 97
2013 101
2014 110
2015 114
3.11 Table: 3.6 Branch expansion network of AIBL
Financial Performance:
Interest expense ratio:Interest expense ratio is different method to evaluate the banks
expense management.
Interest Exp. Ratio = Interest expenses / Total operating income (Tk. in Million)
Year 2011 2012 2013 2014 2015

Interest Expenses 926.24 911.24 1,147.28 1,347.91 2,862.19
Total operating income 591.67 325.79 421.95 414.53 456.60
Interest Exp. Ratio 1.57% 2.79% 3.25% 3.01% 6.26%
Table-3.7: Interest expense ratio.

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Interpretation: From the above data we see that interest expenses ratio was more over
stable up to 2012-2014 but increased more in 2015. It indicates that the bank was trying to
keep the interest expenses more stables up to 2014 but in later period they were unable to
maintain the track.
CAMEL Rating:
The early warning system for problem banks through the CAMEL (Capital, Assets,
Management, Earnings, and Liquidity) rating technique introduced tor strengthening and
modernizing Central Banks supervision and inspection was continued during the year.
CAMEL rating is a suitable way of analyzing banks financial performance. It is a

technique, which is widely used by the central bank as well as financial analysts to
identify banks financial position. Five alphabets of CAMEL means:
C = Capital adequacy
A = Asset quality
M = Management efficiency
E = Earnings
L = Liquidity
These cover all major aspects of financial indicators. To appropriately identify banks
financial position, rating is used which is calculated by following way-
Rating Condition Composite Range

1 Strong 1.0-1.49
2 Satisfactory 1.50-2.49
3 Fair 2.50-3.49
4 Marginal 3.50-4.49
5 Unsatisfactory 4.50-5.00
Table-3.8 CAMEL rating Calculation.
Elements of CAMEL rating are calculated step by step in the following:
Here we use the data of 2014, because all of the data of 2015 required for CAMEL
rating is not available.

48
1. Capital adequacy: Capital adequacy of Al-arafahIslami Bank Limited was 9.15% in

year 2007.
Rating Condition Range

1 Strong 9.00% above
2 Satisfactory 8.00% 8.99%
3 Fair 7.00% 7.99%
4 Marginal 5.00% 6.99%
5 Unsatisfactory 4.99% below
Table;3.9 Interpretation:
Since the capital adequacy ratio of the Al-arafahIslami Bank Limited in 2014 was
16.49%. So, the capital adequacy of Al-arafahIslami Bank Limited is strong. That means
rating is 1.
2. Asset quality: To identify of assets quality of Al-arafahIslami Bank Limited,

classification of loans and advance and provision for loans and advances is required to
know
Particulars 2007 % of total loan

a) Unclassified 17,405.58 93.49%
b) Classified: 1,210.64 0.12%
i) Substandard NIL NIL
ii) Doubtful 0.17 .0009%
iii) Bad & loss 1,210.46 6.50%
Total loans and Advances 18,616.22 100%
Table : 3.9 Asset quality
Classified loan ratio = Classified loan / total loan
= 1,210.64million / 18,616.22 million
= 0.06%
Rating Condition Range

1 Strong Up to 5.00%
2 Satisfactory 5.01% 10.00%
3 Fair 10.01% 15.00%
4 Marginal 15.01% 20.00%
5 Unsatisfactory Above 20.00%

49
Table: 3.10 Classified loan ratio
Interpretation:
Classified loan ratio of the Al-arafahIslami Bank Limited at 2014 was 0.06%. So, the
asset quality of Al-arafahIslami Bank Limited is Strong. That means rating was 1.
3. Earnings: ROA = Net income / Total asset (Tk. in Million)
Ratio/Year 2014
Net Income 58.53
Total Assets 26,942.00
Return on Assets 0.0021%
Customer of one branch is now able to deposit and withdraw money at any of our
branches. All Branches are included in our Wide Area Network.
No TT/DD or cash carrying will be necessary.
For safekeeping of customer's valuables like important documents and goods like
jewelries and gold ornaments, FSIB Locker Service is available in most of the Branches in
urban areas.
3.12 Financial Features of the Bank
To suit the need of clients of different strata in the society so as to tap resources for use in
the banking channel for accelerating the pace of economic operation, Mobilization of fund
is one of the functions of banking business. With the view of above, AIBL has been
operating a number of popular and innovative financial products from time to time
considering the benefit of depositors, clients and bank.
3.12.1AIBL Performance in 2014
In the backdrop of the challenging environment of 2014, AIBL focused on core banking
business, made good growth in profitability and maintained a sound asset quality. The
bank remained financially strong by dint of its resolute focused on the vision of becoming
countrys finest corporate citizen and also emphasis its focused SME, Retail Consumer
relentless pursuit of providing excellent and need based customer service.
The bank mobilized deposits of Tk.109, 905.56 million as at December 31, 2015
compared to Tk. 78,145.04 million till 2014.Total Investment and advances stood at Tk.
96,304.22 Million at the end of the year 2015, which was Tk. 69,467.32 Million at the end
of the year 2014. Import Business stood at Tk.24, 056.20 Million in 2015 compared to Tk.
29,534.90 Million in 2014. Export Business stood at Tk. 7,279.40 Million in 2015 as
against Tk. 10,260.60 Million in 2014.The bank collected foreign remittance of Tk.4,

50
731.60 Million as of 31 December 2015 as against Tk. 1,011.80 Million as of 31

December 2014.In 2015 the bank was able to make pre-tax profit of Tk. 1,951.95 Million
as compared to Tk. 1,589.58 Million in 2011indicating 22.80% Growth.Net profit after tax
stood Tk.762.70 Million in 2012.Earning per share (EPS) stood at 2.04.AIBL made
adequate provision against classified investment. Specific provision made is significantly
higher than last year. Adequate provision made the bank stronger than before. Tier-
1capital stood at Tk. 5,311.65 Million at the end of the year 2012 compared to Tk.
4,548.95 Million in 2011.Tier-2 capital reached to Tk.2,883.24 Million at the end of the
year 2012 compared to Tk. 900 Million in 2011. Return on Asset (ROA) was 1.50% as on
December 31, 2012. Consolidated Capital Adequacy Ratio (CAR) of the bank stood at
10.27% against Minimum requirement of 10.00% as per Basel II Capital Acquired in
December 2011.
Deposit
The Deposit of Al-arafahIslami Bank Limited stood at Tk. 109,905.56 Million as on

31.12.2015 as against Tk.78,145.04 Million of 31.12.2015 registering an increase of Tk.
31,760.52 Million, i.e. 40.64% of growth. Deposit is the Life Blood of a Bank. Bank has
given utmost importance of mobilization of Deposits introducing a few popular and
innovative schemes.
3.13 Deposit Mix of AIBL
1% 4%
6%
Bill Paybale
15% Current Account
Savings Bank Deposit
74% Deposit Schemes
Fixed Deposit
Figure: 3.2Deposit Mix of AIBL
Al-arafahIslami Bank Limited has able to increase its investment deposit adverse
condition in the domestic as well as in the global economy. Total Investment of the bank
stood at Tk. 96,304.22 Million as on December 31, 2015 against Tk. 69,467.32 as on
December 2014 with a growth rate of 38.63%. Investments are the core assets of a bank.
The bank gives emphasis to acquire quality assets and dose appropriate lending risk
analysis and follow all the terms and conditions of IRM (Invest Risk Management) while
approving all sorts of investment to clients.

51
Import Business:
Import trade finance by AIBL Tk. 24,056.20 Million in 2012. Larger LCs were opened
mainly for importing wheat, edible oil, capital machinery, coal, cotton, fabrics, and
accessories.
Export Business:
AIBL successfully handled export documents of Tk. 7,279.40 Million during the reporting
year 2012. Readymade Garments, Knitwear, Frozen Foods, Fish, Lather Goods, Agro
products, Handcrafts etc. were the major export finance sectors.
Foreign Remittance:
Bank has procured foreign remittance Tk. 4,731.60 Million as of December 31, 2012.
Meanwhile, the bank has made enormous progresses in dealing remittance business with
some leading exchange house like Western Union, Placid NK Corporation, Moneygram,
Express Money, SuperX 10 global money etc. Moreover our two 100% owned exchange
houses in Canada & Italy have sent substantial amount of foreign remittance.
Correspondent Banking
Correspondent banks are trade partner of International trade. AIBL has already achieved
tremendous success in foreign trade. The bank has established correspondent relation with
1400 o branch of 200 different renounced banks at financial important location across the
world.
Subsidiaries of the Bank
Considering the demand of the market and our total committeemen to support and serve
the customers from different angle of the bank lunched subsidiaries namely Al-
arafahIslami Capital & Investment Limited, Al-arafahIslami Exchange House Canada, Al-
arafahIslami Exchange House Italy to provide merchant banking service and superior
remittance services respectively. We believe that such endeavor will widen the
opportunity of the bank to serve the customer from different aspect with utmost care.

52
3.13.1AIBL launched a series of following Products:
Also the following products will be lunched very soon in 2013
Mudaraba Cash Waqf Deposit Scheme
Mudaraba New Generation Savings Account
Mudaraba New Generation Deposit Scheme
Beside these, the principle finance products and service of bank are as follows:
a) Deposit products
Al-Wadiah Current Deposit Account
Mudaraba Savings Account
Mudaraba Term Deposit Receipt
Mudaraba Special Notice Deposit(SND)
Mudaraba Monthely Deposit Scheme
Mudaraba Monthly Profit Scheme
Mudaraba Deposit Double Scheme
Foreign Currency Deposit
Additionally
b) Investment Products
Corporate Finance
Commercial Finance
Industrial Finance
Lease Finance
Syndicate Finance
Hire Purchase Finance
Real Estate Finance
Small and Medium Enterprise

53
c) Services
ATM Card
Education Remittance Service
SMS Banking
Locker Service
Collections of Utility Bills
Mobile Banking
3.14 ICT Division of AIBL
Information and Communication Technology (ICT) increasingly becoming an invaluable

and powerful tool driving development, supporting growth, promoting innovation, and
enhancing competitiveness. Its introducing global environment less limited by time or
distance, nations around the world need to get connected and join the global network
community. Information and Communication Technology application creating the banking
service easier and simpler and also increasing the banking acceptance to our country
people.
ICT Division of AIBL is using latest technology for providing best banking services by
making the bank fully redundant online data connectivity using high speed fiber, radio link
and satellite communication for all branches to provide uninterrupted data communication
with DATA CENTER.

54
3.15.0 Branch Expansion

During 2012 Bank has opened 16(Sixteen) new branch at different commercial important
location of the country and thus the total number of branches rose to 100(One Hundred)
out of 100 Branches, 53 are located at the prime business center of urban areas and
remaining 47 Branches are at Rural areas of the country. The following Branches were
opened during the calendar year 2012:
SL. NO. BRANCH DISTRICT URBAN/RURAL
01 Halishahor Chittagong Urban

02 Mohammadpur Dhaka Urban
03 Banshkhali Chittagong Rural
04 Keshabpur Jessore Rural
05 Naogaon Naogaon Urban
06 Konapara Dhaka Rural
07 Chuadanga Chuadanga Urban
08 Pekua Coxs Bazar Rural
09 Kumira Chittagong Rural
10 Galachipa Patuakhali Rural
11 Shawrupkhali Pirojpur Rural
12 Pahartoli Rowzan Chittagong Rural
13 Jhenaidah Jhenaidah Rural
14 Navaron Jessore Rural
15 Tongbari Munshigonj Rural
16 Ramu Coxs Bazar Rural
Table: 3.12 Branch expansions
However the bank has a plan to expand its area of operation by opening new branches to
cover rest of the important urban and rural areas of the country in 2013.
3.16.0 Risk Management

A separate and independent Risk Management Unite (RMU) has been set up in the bank as
per Risk management guidelines for bank issued by the central bank. The head of the unite
is an executive who is designated as Chef Risk Officer (CRO) as prescribed in the above
mentioned guidelines. The unite identifies the risk items/ areas of the bank and find out
remedies to minimize or eliminate the risk. There is a high-powered Risk Management
Committee comprising of divisional head of 06 corer risk areas and chaired by the Deputy
Managing Director. The unite prepares monthly Risk Management papers as required by
Bangladesh Bank which is discussed threadbare in the monthly Risk Management
meeting. The minutes of monthly Risk Management meetings along with the monthly Risk
Management papers are submitted to Bangladesh Bank quarterly.

55
3.16.1 Anti Money Laundering & Anti Terrorist Financing Activities:

Money Laundering has become a great concern world wide as the illegally earned money
and other anti-social crimes make the socio-economic condition unstable. Keeping pace
with increasing financial facilities, money laundering, and financing of terrorism are
getting new dimensions day by day. Money launderers are tried to create a legitimate
background for their money and try to filter their ill-gotten money by doing financial
transactions through bank and other financial organizations. Persons seeking to fund
terrorists are now also being involved money laundering activities. Al-arafahIslami Bank
Ltd. Always vigilant against money laundering and terrorist financing. For successful
prevention of these illegal activities, a full- fledged division named; Anti Money
Laundering Division (AMLD) has been formed under the close supervision of higher
authorities. As per Bangladesh Bank Guidelines, the bank has formed a Central
Compliance Unite (CCU) consisted of senior executives and division head of the bank,
which is responsible for implementing Bangladesh Bank directives and following Money
Laundering Prevision Act 2012. Circular or Circular letters from Bangladesh Bank
instantly Circulated to the all Branches and Divisions by Anti Money Laundering Division
(AMLD). At the same time all the Branches are advise to strictly follow all the orders and
instructions mentioned by in those Circular or Circular letters or letters. The bank has
continuous effort to comply with Guidance Note on Prevention of Money Laundering
issued by Bangladesh Bank. Besides the Bank has got its own Anti Money Laundering
Policy vetted by the higher authorities of the bank. For constant vigilance of against
Money Laundering there is a Branch Anti Money Laundering Compliance Officer
(BAMLCO) in every Branch. Moreover, inspection of branches is being conducted by
Anti Money Laundering Division (AMLD). The bank is sincere enough to submit
Suspicious Transaction Report (STR) (If it is really found) and Cash Transaction Report
(CTR) to Bangladeshi financial intelligence unit (BFIU), Bangladesh Bank in due time.
Al-arafahIslami Bank Ltd. Training institute regularly provide training to the employee of
the bank on the topic of Money Laundering Prevention. The bank also arranges
Workshop on Money Laundering Prevention in different district with active
participation of officials from other commercial banks operating there.
3.17.0 Research and Development

Research and Development is one of the means by which Bank can focus future growth by
developing new products or process to improve and expand banks operational activities.
As banks are highly focused on business process improvement, the aim of R&D division is
to improve existing products, create new and better products, and create effective process.
This would enable the bank to reduce cost, increase profitability and remain ahead in the
competition. Being a recently established department, R&D division in 2012, has given
emphasis on the on the development of Banking Terminology in Bengali (Bangla) with
the aim to enable banking terminology more-easer and understandable for the new and
young entrants as well as experienced and seasonal Bankers. It is now in the process of
scrutinizing the second draft for more authentications and expect within a short possible

56
time it would come in to the light. Another one was on the development of a new deposit
scheme product namely Protyasha. Product development committee is exploring the
possibilities of lunching the same and hopes it would also come in to the light at the
earliest. R&D division is always making all out efforts for new ideas and innovation of
effective process in relation to the banking operations and services.
3.17.1 Management Information System

After inception of MIS division is on its way of timeless effort to collect appropriate and
correct data/information to regulatory requirements of Bangladesh Bank. MIS division is
acting as the chef coordinator between our Al-arafahIslami Bank and Bangladesh Bank in
sending financial statement required by Bangladesh Bank. MIS Division sends it through
rationalized input template of Bangladesh Bank web portal under enterprise data
warehouse project incited by Bangladesh Bank. Moreover, MIS Division is regularly
moving with Bank financial indicator or the requirement of Bangladesh Banks internal
Islamic Division (IID), BRPD and Risk Monitoring section under Department of off-site
supervision.
Besides, MIS Division supplies all the necessary information to the management of the
Bank as and when required. Risk Management Unit of the Bank collects their necessary
information through MIS Division.
3.17.2 Green Banking

Climate change has become a global concern as it has direct impact on biodiversity,
agriculture, forestry, dry land, water resources and human health. The key areas of
environmental degradation are: air and water pollution, encroachment of rivers, improper
disposal industrial, medical and house-hold waste, deforestation and lose of open space
and biodiversity. People across the world now admit the Bangladesh is one of the worst
victims of climate change. Green banking is like a normal banking which considers all the
social environmental/ ecological factors with an aim to protect the environment and
conserve natural resources. It is also called as an ethical bank or sustainable bank. They
are controlled by the same authorities but with an additional agenda toward taking care of
the earth environment/ habitats/ resources.
As a corporate citizen and environmentally responsible financier Al-arafahIslami Bank

Ltd. Did not sit idle. Through green banking is relatively a newer idea in Bangladesh. Al-
arafahIslami Bank is one of the few banks that have introduced Green banking not only
help to save environment but also for a sustainable economic growth. We aspire to
establish us as a prominent institute that will operate to reach our long term strategic
objective to a green bank where every decision will be taken with both financial and
environmental consideration in mind. We have unified our sustainable operations less than
one roof by forming Green Banking Unit equipped with permanent employees. Our
Green Banking policy Guidelines and Green Office Guide have been circulated to all our
employees for creating awareness on Green Banking activities and providing instructions
about conserving energy, water, saving paper etc.

57
3.18.0 Human Resources Management

The Bank always emphasis on the development of its manpower. It believes that the
factors which help the bank survive are closely interlinked with the quality of services and
satisfaction of clients and these depend on the qualification of the employees and
effectiveness & efficiency of the work. As our human resources give our organization a
significant competitive edge, we continue our policy of recruiting the best professionals
and implement programmed to develop and retain high quality employees for facing
challenges of 21st century and overcoming the global recession. The bank is making equal
opportunity for new talents in its process of requirement and selection. The bank is
continuing its effort towards the development of its manpower by providing required
training, workshops, seminar etc. in home and abroad to make real professional.
HR Strategy:
The Banks aim is to make equal opportunity for all concerned.
Recruit the best person through rigorous and competitive examinations.
Provide required training for newly appointed employees for their development.
Make appropriate placement based on the need of the organization and experience
& qualifications of employees.
Ensure congenial working environment.
Help to contribute individually and as a member of a team.
It provides opportunity to develop employees for become a future leader.
Provide competitive pay package and other benefits to maximize the satisfaction
level and retain qualified personnel.
We are committed to maintain congenial working environment free from

discrimination based on parochialism, religion, sex, race, creed, age or any other
issues. We do not tolerate any behavior that can be perceived as degrading or treating.
We believe in workings in a friendly, positive, and respectful environment which
permit employees to work to maximum effectiveness and efficiency and to their full
potential. The bank excels the performance of its member of the staff by creating
opportunities through providing proper training, rewards, and recognitions. To attract
and retain qualified and efficient employees, the bank has formulated a number of well
tough policies for the welfare of its employees in the form of contributory Provident
Fund, Gratuity Fund, Employees Social Security and Benevolent Fund, Employees
House Buildings Investment Scheme, Employees Car Financing Scheme, HPSM
Consumer Durable and House Furniture Benefits etc.
To make its employees more efficient Al-arafahIslami Bank Ltd. Has shifts its
Training Institute from Gulshan-2 to Bashundhara a spacious place at plot# 12, Block#

58
A, Bashundhara R/A Dhaka. The bank is going to appoint faculty members for its
Training Institute in order to provide need-based training for the employees. From the
inception the Training Institute of the bank, it has been provide various training like
Fundamentals of Banking, Islamic Banking, General Banking, Islamic Investment
Mechanism, Trade Finance and Foreign Exchange, Information & Communication
Technology, SME & Agriculture, Mobile Financial Services, Online Banking,
Malpractices in Banking, Anti Money Laundering, Green Banking and many other
related to.
3.19Dividend
The Board of Directors recommended 10% stock dividend for year ended December
31, 2012.
3.20 Future Outlook of AIBL
Since the year 2011 was a nail biting tends period for in all involved in banking
business, due to region on recession and economic mayhem across the globe and sign
of recovery still too frail and fragile to be taken into consideration the year 2012 will
be the year of cautious move and calculative risk. However, the bank will stick to its
fundamental task of doing business in a socially and environmentally sustainable
manner. We are quite confident of implementing the core banking solution, BANK
ULTIMAS within this year. Nonetheless, this year would bring forth intense
competition among the bank as investment opportunity would be conscious due to
global recession. Moreover dearth of liquidity and hefty government borrowing from
the banking and public sector as well, would make the situation more edge. Our aim is
to collect the savings of lower-middle class through innovative and attractive scheme
deposit products and simultaneously we would go for the class banking through
Priority Banking. With the advent of state of art technology we will be able to earn
supremacy in terms of customer service by providing them satisfaction to all visible
angles.
Since Interest rate risk is suppose to be the greatest threat due to rise in interest rate in
the market along with filthy competition, we would emphasis on procuring No/Low
cost deposit through vagarious campaign all the year round and would be able to retain
and attract potential customers by rendering services to the extent of highest possible
degree. Just after inception, we have attained strong footing in terms dealing with
foreign currency and the trend would remain the same and thereby international trade
and remittance from Bangladeshi expatriates will also be emphasized. AIBL has also
planned to expand its exposure in following areas:
Opening of new Branches to important location of the country.
Expansion of business network at home and abroad.

59
Credit Card Facility.
Internet Banking
Enhancing in-house training facilities.
By Modernizing the Training Institute.
Innovation and introduction new Liability and Asset Products.
3.21 Industry Outlook and possible future Developments in the Industry

The Accounting year 2012 is the year of cautious move and calculative risk, where the
year 2011 was a nail biting tends period for in all involved in banking business, due to
region on recession and economic mayhem across the globe and sign of recovery still too
frail and fragile. In fact banking industry play vital role to contribute in the world
economy as well as Bangladesh economy. Since interest rate risk is supposed to be the
greatest threat due to rise in interest rate in the market along with filthy competition, the
banking industry has emphasized on procuring no/low cost deposit through vagarious
campaign all the year round and would be able to retain and attract potential customers by
rendering services to the extent of highest possible degree. Banking industry is still the
most promising and structured sector of the economy. They are also most preferred sectors
of the investors of the bourses as increased remittance flow, good export performance, and
steady industrial growth, accelerated performance in SME and Consumer Loan
implementation of Risk Management and corporate governance are likely to have positive
impact in the performance of the banking sector.
3.22 Corporate Social Responsibility (CSR) of AIBL

Al-arafahIslami Bank Ltd. Always extend their hand to promote art and culture of the
country and assists the distressed community in education, health and various natural
calamities as a part of Corporate Social Responsibility (CSR).The Bank contributes almost
5% of its operational profit in this project. In the year 2012, Al-arafahIslami Bank Ltd.
Contributing amounting Tk. 110,398,070/-(Eleven core three Lac ninety eight thousand
seventy taka) only in various sectors of the country as a part of Corporate Social
Responsibility (CSR).
Major CSR Activities of Al-arafahIslami Bank Ltd. In the year 2015 are as follows:
1. Distributed 50000 pieces blanket among poor & cold hit people of this country.
2. AIBL going to establish Al-arafahIslami Bank School, where students will get free
education & Al-arafahIslami Bank Hospital, where poor patients will get free
treatment. Primary Budget for the each project is Tk. 50 Lac.
3. AIBL Donated 25 Lac taka to Rotary Kenayat Ali-Anowara Khatun Old Home.

60
4. AIBL Donated 5 Lac taka to Dr. SK Mazumder Agriculture & Vocational Institute,
to establish a Hatchery.
5. AIBL donated so sewing Machines to Bangladesh Muktijodhya Sangsad, Jessore

Zila Unit Command for insolvent Freedom Fighter Family.
6. AIBL Donated Computer for the students of Uttra School & College, South
Banasree, Madartak, Shobujbag for their modern as well as contemporary
education.
7. AIBL Donated 5 Lac taka to SEID Trust for providing educational materials to
physically & mentally disabled 300 Students.
8. AIBL Donated to Prime Minister Relief Fund.
9. AIBL Donated to Bangabondhu Sheikh Mujibor Rahman Memorial Trust.
10. AIBL Donated 1 Lac taka to Thelasamia Welfare Centre Bangladesh, Chittagong.
11. AIBL Donated 5 wheel chairs to Disabled Child Foundation.
12. AIBL Donated 1 Lac taka to Disabled Community Advancement Foundation,

Sylhet.
13. AIBL Donated 1 Lac taka to Kidney Awarness Monitoring & Preventation Society
for enriching knowledge of general people about Kidney & treatment of poor
patients.
14. AIBL Donated 5 Lac taka to Biswa Shahitto kendro.
15. AIBL Donated 5 Lac taka to Bangabandhu Sheikh Mujibor Rahman Charitable
Fund to assists poor & disables Pediatric Rheumatology Patients.
16. AIBL Donated 2 Laptop, 1 Printer, 1 Multimedia Projector & 1 Scanner to each of
the 21 educational institutions at Shenbagh, Noakhali.
17. AIBL Sponsored Entrance Gate & Parents Waiting Room of Agrani School &
College, Azimpur, Dhaka.
18. AIBL Donated Formalin De- Hydrated Machine to The Federation of Bangladesh
Chambers of Commerce and Industry (FBCCI).
19. On the occasion of Celebrating International Mountain Day 2012, AIBL donated 1
Lac taka to M A Mohit, President of Bangla Mountaineering & Trekking Club.
20. AIBL sponsored a student of United International University Mr. Q M Shafayat to

participate in World University Debate Championship 2012-2013 to be held at
Berlin in Germany.

61
21. AIBL Distribute 50 Scholarships among disabled poor students of various Buddhi
Protibondhi school of Dhaka city.
22. AIBL Donated a Generator amounting Tk. 8,50,000/- to Upazilla Health Complex,
Agoiljhara, Barisal for its 50 beds Hospital.
3.23Financial Express (FE) Report

VOL 20 NO 157 REGD NO DA 1589 | Dhaka, Wednesday, December 19 2012
Bangladesh Bank Governor Dr Atiur Rahman Tuesday urged all the banks to immediately
move to distribute warm clothes among the cold-stricken poor people, especially in the
North Bengal, under corporate social responsibility (CSR). The governor was speaking as
the chief guest at a CSR Programmed of Al-arafahIslami Bank Ltd (AIBL) at a city hotel,
where the bank handed over donations worth about Tk 20 million in different sectors of
the country.
The programme was also addressed, among others, by SK Sur Chowdhury, deputy
governor of the Bangladesh Bank (BB) and AAM Zakaria, Managing Director of AIBL.
BB in early 2008 instructed the banks about CSR activities as part of their responsibilities
to the society. Internationally, the CSR have already become inseparable part of the all
business activities, Dr Atiur Rahman said. In the last four years, the growth in the CSR
sector has increased by over 5 per cent, he said.
AIBL in 2011 spent 5 per cent (Tk 80 million) of its operating profit under different CSR
activities including sports and culture, health, disaster management, education and warm-
clothe distribution.
Dr Rahman praised the CSR performance of the Al-arafahIslami Bank.
Mentioning the BB's policy about expenditure of 5 per cent of the banks' profit under
CSR, Mr SK Sur Chowdhury said the central bank from the next year wanted the banks to
spend at least 10 per cent of their total CSR budgets.
AAM Zakaria, the bank's MD, pledged to continue the bank's CSR activities in the future.
Mentioning that AIBL applied for BB's permission to open more 30 branches, Mr Zakaria
said the bank is even ready to set up the branches at the ratio 2:1 at the rural and urban
areas.
At the CSR programme Tuesday, AIBL handed over Tk 5 million for established of
proposed Al-arafahIslami Bank School at Patiya in Chittagong, where the students will get
free education.
The same amount of Taka was given for establishment of proposed Al-arafahIslami Bank
Hospital at Patiya, where poor patients will get free treatment from this proposed hospital.
AIBL donated Tk 2.5 million to Rotary Kenayat Ali-Anowara Khatun Old Home,
operated by Rotary Club in Jessore, to make the lone underprivileged old people's rest life

62
full of happiness. The bank distributed 10,000 blankets worth Tk 2.5 million among cold-
hit people at various areas across the country.
Other sectors of the bank's CSR donation include: Tk 0.4 million to Bejoy Parban, Tk 0.5
million to Dr SK Mazumder Agriculture and Vocational Institute, 30 sewing machines to
Muktijodhha Sangsad Jessore Zila Unit Command, some computers to Uttaran School and
College, Tk 0.5 million to SEID Trust, Tk 0.1 million to Disabled Community Advanced
Foundation in Sylhet, Tk 0.5 million to Biswa Shahitto Kendro and educational
equipments to 21 institutions in Noakhali.
As a part of the Corporate Social Responsibility (CSR) Programme, Al-arafahIslami Bank
Limited (AIBL) arranged free eye treatment for the distressed orphan children recently.
In association with the Bankers Forum, Al-arafahIslami Bank Limited managing director
A. A. M. Zakaria distributed spectacles to the orphans, says a press release.
Among others, deputy-managing directors, Md. Abdul Kuddus, Md. Sayedul Hassan and
the head of marketing Azam Khan were present on the occasion.
3.24.0 Al-arafahIslami Bank Ltd Becomes Lead Sponsor of Children
Science Congress 2013

Tuesday, 14 May 2013
Children Science Congress 2013 has been organized for the first time to encourage
Bangladeshi student on Google Science Fair, powered by search engine giant
Google. Society for the Popularization of Science, Bangladesh (SPSB) - a sister concern of
BdOSN and Bangladesh Freedom Foundation (BFF) is jointly organizing the Children
Science Congress 2013 and Al-arafahIslami Bank Ltd namedPrime sponsor. A contractual
agreement has been made at Head office of Al-arafahIslami Bank Ltd yesterday. Syed
Habib Hasnat, Senior Executive Vice President of Al-arafahIslami Bank Ltd and Munir
Hasan, Vice President of SPSB and Convener of Children Science Congress 2013 signed
the agreement on behalf of their own organization.
Syed Wasek Mohammad Ali, Deputy Managing Director, Azom Khan, Head of Marketing
and Sazzadur Rahman Chowdhury, Executive Director of Bangladesh Freedom
Foundation were present on the ceremony.

63
3.24.1AIBL received Arthakantha Business Awards15

AIBL received Arthakantha Business Awards 2013 as best CSR provider of the year at
Ruposhi Bangla Hotel in the city recently. Mr. Dilip Barua, Minister for Industries,
Government of the Peoples Republic of Bangladesh handed over the Award to Mr. Syed
Waseque Md. Ali, Deputy Managing Director of Al-arafahIslami Bank Limited. Among
others Mr. Kazi Akram Uddin Ahmed, President of FBCCI and other officials were also
present on the occasion.
3.24.2Al-arafahIslami Bank Limited (AIBL) CSR award
Al-arafahIslami Bank Limited (AIBL) was recently awarded the Corporate Social
Responsibility (CSR) Award 2009 by Bankers Forum.
AM. Zakaria, Mana- ging Director, Al-arafahIslami Bank Limited received the award from
former Bangladesh Bank governor Dr Salehuddin Ahmed at a function held at CIRDAP
auditorium in the city, said a press release. The bank was awarded the CSR award in
recognition of its active participation in the field of Corporate Social Responsibility (CSR)
Programmed.

64
Chapter-04:Highlights
4.1.1 Respondent
4.0 Background of Research.
4.1.0 Survey
4.1.2 Questionnaire
4.2.0 Population
4.1.4 Sampling
4.1.3 Interview
4.3.0 Research purpose
4.3.1Application of research methodology:
4.4.0 Research approach
4.4.1 Research strategy
4.5.0 Data collection method
4.5.1 Sample selection
4.5.2 Designing sampling process:
4.6Analyzing Data
4.7 Validity & Reliability

65
4.0 Background of Research.
In this chapter the methodology of the research is presented. The selections and
implications of the research methods are explained together with justifications of the
choices. The chapter ends with a conceptualized summary of the methodology process.
With a view to conducting a research study, what is necessary is to design the framework
and select the appropriate research methodology. A research design is simply a framework
or a plan for a study that may be used as a guide in collecting and analyzing data. On the
other hand, the research methodology is a way to systematically solve the research
problem. Methodology means the underlying principles and rules of organization of a
philosophical system or inquiry procedure.There are various methods of conducting the
research, such as- Interview Method, Observation Method, Historical Method, Statistical
Method, Questionnaire Method and the like. Given the nature of the present study, it is
required to collect data/information from the primary and secondary sources
4.1.0 Survey
A survey is a data collection tool used to gather information about individuals. Surveys are
commonly used in psychology research to collect self-report data from study participants.
A survey may focus on factual information about individuals, or it might aim to collect the
opinions of the survey takers. A survey can be administered in a couple of different ways.
In one method known as a structured interview, the researcher asks each participant the
questions. In the other method known as a questionnaire, the participant fills out the
survey on his or her own. Surveys are generally standardized to ensure that they have
reliability and validity. Standardization is also important so that the results can be
generalized to the larger population.
4.1.1 Respondent
Respondent has been for many years the usual term for an individual who takes part in a
market research project. However, this is increasingly replaced by the term 'participant', as
researchers and clients recognize the value of a more collaborative interviewing
relationship. That is, the research subject is no longer regarded as a passive object to be
studied, being kept in the dark about the research and its objectives and simply
'responding', but as a valued partner in an exploratory process.

66
4.1.2 Questionnaire
A questionnaire is a means of eliciting the feelings, beliefs, experiences, perceptions, or
attitudes of some sample of individuals. As a data collecting instrument, it could be
structured or unstructured. The questionnaire is most frequently a very concise, preplanned
set of questions designed to yield specific information to meet a particular need for
research information about a pertinent topic. The research information is attained from
respondents normally from a related interest area. The dictionary definition gives a clearer
definition: A questionnaire is a written or printed form used in gathering information on
some subject or subjects consisting of a list of questions to be submitted to one or more
persons.
Two types of questionnaires

Closed or restricted form - calls for a "yes" or "no" answer, short response, or item
checking; is fairly easy to interpret, tabulate, and summarize.
Open or unrestricted form - calls for free response from the respondent; allows for
greater depth of response; is difficult to interpret, tabulate, and summarize.
4.1.3 Interview
An interview is a direct face-to-face attempt to obtain reliable and valid measures in the
form of verbal responses from one or more respondents. It is a conversation in which the
roles of the interviewer and the respondent change continually.
4.1.4 Sampling
Sampling is concerned with the selection of a subset of individuals from within a

statistical populationto estimate characteristics of the whole population. Acceptance
sampling is used to determine if a production lot of material meets the governing
specifications. Two advantages of sampling are that the cost is lower and data collection is
faster than measuring the entire population.
4.2.0 Population
A population can be defined as including all people or items with the characteristic one
wish to understand. Because there is very rarely enough time or money to gather
information from everyone or everything in a population, the goal becomes finding a
representative sample (or subset) of that population.

67
4.3.0 Research purpose

According to Yin (2003) three types of research: Exploratory, descriptive ,and
explanatory. Exploratory research is applied when a problem is difficult and you
have little knowledge about the area you are studying (Eriksson & Wiedesheim-Paul,
2001). It can be seen as a pilot study, in which the researcher creates a base of
understanding to formulate more precise questions or a testable hypothesis . According to
Walln (1996) it gives a basic understanding of the problem and its context. According to
Patel & Davidson (1994) the purpose of exploratory research is to collect as much
information as possible about a specific subject. It is suitable as a base, when formulating
interesting questions for future research.
Descriptive research focusing on illustrating characteristics for the research object
and are consisting of gathering and systemizing existing data (Walln, 1996).
Description is compared to prediction and prescription; which grants possibilities to
deduce and recommend (Gummesson, 1991). The descriptive research is used when
the goal is to develop a careful description of different patterns that were expected
during the exploratory stage. The objective is to describe how something is without
explaining why (Yin, 2003). Explanatory research is used when the researcher is
searching for a cause and effect relationship, to be able to create theory that can be
used to explain empirical generalization s (Eriksson & Wiedesheim-Paul, 2001).
Explanation is the superlative of understanding in a learning environment (Gomm et.al.
2000).The previously stated problem discussion and the formulation of my research
questions, combined with the above definitions of research purposes will help me to
decide what methodology structure is appropriate. The conclusion is that this study
could be classified as descriptive and to some extent exploratory.
4.3.1Application of research methodology in the report:

I have used Exploratory research methodology for conducting the research How Public
relation adds value in Banking industry in Bangladesh: A case study on AIBL in
Badargonj Branch.
4.4.0 Research approach

A basic distinction can be made between a quantitative and a qualitative research method.
In most situations, numbers describe the quantitative data, and words describe the
qualitative data (Blaxter et.al. 2001). Qualitative research tends to offer more
detail about the subject, with data in large scale, which is often perceived as
facts. On the other hand quantitative research is concerned with collecting and
analyzing information in many forms. It tends to focus on exploring in detail, which
provides more precision (ibid).
Application of research approach:I have used qualitative research approach for
conducting the research.The purpose of this research is to describe the various
aspects ,role, application & practices of PR in FIBL. Since these factors need to be
studied in detail to be able to gain a better understanding about PR practices in
AIBL, it is appropriate to use a qualitative research method. There are two ways of
drawing conclusions, inductive and deductive. The inductive way to draw conclusions is

68
founded on empirical data. The researcher establishes theories and models that are
based on different phenomena in reality. Thedeductive approach means that the
researcher is using existing theories and investigates these empirically with different
methods. (Eriksson & Wiedesheim-Paul, 2001). The frame of reference in this study is
based on existing theories and therefore the approach is deductive.
4.4.1 Research strategy

According to Yin (2003) there are five different strategies for research. These
research strategies are; Experiments, surveys, Archival analysis, history and case
studies. Some of these strategies are better suited than others for dealing with
specific issues, and a crucial thing for good research is that strategy choices are done
rationally.
The case study is ideally suited to the needs and resources of a small-scale researcher,
because it allows for a focus on one or few examples. Data in case studies are
drawn from peoples experiences, which allow the researcher to show the
complexity of real life circumstances. (Blaxter et.al. 2001). Relationships and
processes within a social setting tend to connect and relate. To understand one
factor, it is important to under stand many others, to be able to see how different
parts are linked together. The case study approach offers a good chance to review
the complexities of a given situation. When concentrating efforts on one case
rather than many, there can be insights gained from the individual situation, which
had not been discovered through the use of a broader research strategy (Denscombe,
2003). Since the research approach chosen in this report is qualitative, and the
focus lays on providing a better understanding of processes and relations within a
specific company utilizing PR, the best suited research strategy is the case study.
As above stated by Denscombe (2003), the case study is the best way to penetrate
and investigate a single or few complex situations, which is the purpose of this
study.
Application Research strategy in the report: Therefore I have conducted case studies at
AIBL.
4.5.0 Data collection method

According to Yin (2003) the field of qualitative research has six forms of sources of
evidence for collecting data. These six forms are: documentation, archival records,
interviews, direct observations, participant observations and physical artifacts.
Documentation is important for almost every case study. Documents can be letters
memoranda, agendas, newspapers clippings or other articles in mass media or
community newsletters. In case studies documentation is best used to confirm and
argument evidence from other sources (Yin, 2003). General information about the
companies has been found at their web pages and in printed material such as annual
reports. Interviews are a narrative method of collecting data. The interview consists of
two or more participants that engage in a conversation that constitutes a learning
process (Blaxter et.al. 2001). To better grasp the research purpose, inter views provides
a more in-depth insight into the research area. By interviewing the research is
limited to fewer informants with rich information sharing (Denscombe, 2003).

69
According to Yin (2003) the interview is the most important source when it comes to
obtaining information within a case study.
There are three different kinds of interviews: open- ended interviews, focused interviews
and survey interviews. The most common interview is the open-ended, where the
researcher ask s questions about a certain issue as well as letting the respondent to
propose his or her own. Insights and opinions about the matter . A focused interview
can be open-ended but the interview is often done faster. The researcher is also most
likely following pre-made questions. A survey interview is structured in the way that
the researcher is following a more strict form of questions, similar to formal survey.
It is focused on collecting quantitative data. (Yin, 2003).
Due to the nature of the research I have used a mix of open-ended and focused
interviews. With an interview guide as a foundation, the respondents were able to
talk freely about the aspects surrounding the questions.
According to Eriksson & Wiedersheim-Paul (2001) there are two kinds of data,
primary and secondary data. Primary data is gathered directly by the researcher with a
specific purpose in mind. Secondary data is what past researchers already have
gathered for their own various purposes.
In my thesis period I collect the data for preparing report thorough survey with
predesigned 31 questionnaire, documentation, archival records, interviews, direct
observations, participant observations and physical artificial facts.So I have collect data
from both primary & secondary sources. The interview is my primary data and the
documentation is my secondary data.
4.5.1 Sample selection:After selecting a suitable research strategy, I have chosen

customers & officers of AIBL to take part in our study. A problem when conducting
research on larger bank is toget access to right persons . During the preliminary phone-
calls we were able to book inter views with the right respondents at the banks
information and communication departments. I interviewed Mr. Mahfuzul Islam,
operation manager at AIBL. To get insight in the local activities at the banks, we
met for an inter view with Mr. Mukul senior officer at AIBL
4.5.2 Designing sampling process:
Sampling process consist of five steps. Following the Sampling process
1).Target population:For conducting the research my target population are the 31 activist
customers of AIBL Badargonj branch.
(2).Sampling Frame:I have taken the number of elements as a sampling frame such as
customers officers & pion of bank.
(3).Sampling technique: Selecting a sampling technique involves several decision of a

broader nature. The researcher must decide whether to use a Bayesian or traditional

70
sampling approach, to sample with or without replacement, and to use non -probability or
probability sampling.
(4). Sample size:
For conducting the research about How public relation adds value to banking industry in
Bangladesh: A case study on AIBL on Badargonj branch I collect data from then
31activist customers of AIBL. I have collected data from 21 activist clients,02 pion, & 08
officers of AIBL. So my sample size is 31.
Types of Respondents No of Respondents Total
Employee 10 31
Customer 21
Table: 4.1 Sample of survey
(5). Execute sampling process:
Finally I execute the sampling process by following above mentioned sampling procedure.
4.6 Analyzing Data
A case study should start with a general analytical strategy that provides the basis for
what to analyze and why. There are three different general analytical methods: Relying
on theoretical propositions, thinking about rival explanations, or developing a case
description. Yin (2003) says that without a general analytic strategy, a case study
analysis will be difficult to carry out.
According to Yin (2003) the first strategy, relying on theoretical propositions, is
the most preferred. It means that you are following the theoretical propositions that
led to your case study. The original objectives and design of the case study
presumably were based on such propositions, which in return reflected a set of research
questions, review of the literature, and new hypotheses or propositions. Thinking about
rival explanations triesto define and test rival explanations; this can also be related to the
first strategy. The final strategy is developing a case description; this is according to
Yin the least preferred, but it can be used when you have problems making either of
the other approaches work.
In this research I have used the method of relying g on theoretical propositions.
The research questions are developed and built on the basis of previous studies,
and the findings are compared to the previous research conclusion. I started to
analyze the collected data using within-case analysis, comparing existing theories to
our empirical findings

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4.7 Validity & Reliability

In all research, the methods and conclusions need to be justified. This justification
has to demonstrate the nature of the decisions taken during the research, and on
which ground the decisions are reasonable for the reader (Denscombe, 2003).
Reliability
Reliability is concerned with how reliable and accurate the research methods and
techniques for collecting data are. The reliability is a way of measuring how well a
method provides a researcher with the same results, if the method were to be
repeated under the same circumstances. If a method is not reliable, it also lacks
validity, but high reliability does not automatically mean high validity. It is possible
to use a method that would provide the researcher with the exact same results under
different occasions, without actually measuring what was intended to measure ( Yin,
2003). According to Denscombe ( 2003) the meaning of reliability is whether research
instruments are neutral, and if doing a similar study, same results will be achieved. I
have tried to be as objective as possible when handling and evaluating the collected data. A
digital-recorder was used during the telephone interviews. By using a digital-recorder
other s can review the interview answers, and we can also double-check the material
afterwards. I also tried to avoid biasing the respondents answers by asking leading
questions.
Validity
The meaning of validity is whether your methods, approaches and techniques
actually measure and relate to the problem that has been explored (Blaxter et.al.
2001) Validityis defined as an instruments ability to measure exactly what it is supposed to
measure (Eriksson & Wiedesheim-Paul, 2001). There are according to Yin (2003)
three for ms of validity, construct-, internal-, and external validity. When establishing
construct validity the researcher makes sure that the correct operational measures are
utilized for the concepts being studied, and that objective judgment is used to collect
data. Internal validity is only of relevance if conducting an explanatory study, and
since we are not conducting an explanatory study this is of no relevance. Finally,
external validity refers to establishing of the domain to which the findings to a study
can be generalized. Since our sample is small, and the study qualitative, we are not aiming to
generalize (Yin, 2003).
Two or more methods are used in order to complement each other. Combined they can
produce differing but supporting ways of collecting data with increased validity as a
result (Denscombe, 2003) . By using interviews and documentation, the construct validity
of this study was increased. To further increase the validity, a simplified outline of
the interview guide was sent to the respondents in advance. This gave our respondents
the possibility to prepare for the S interview and to obtain the correct information. After
the interviews were documented, they were sent to the respondents for corrective reading.
According to Denscombe (2003) direct contact at the interview enables that data can
be checked f or accuracy and relevance, as it is collected. When interviewing by
telephone we were not able to see the facial reactions of the respondents, but were are
able to get back to any issues and ask them directly if there was anything left unclear.

72
Chapter-5:Highlights
5 Findings &Data Analysis
5.0 Data Sources
5.1 Data collection instruments
5.2 Data processing
5.3 Analyzing the data
5.4.0 Findings
5.4.1 Practices of PR tools in AIBL in Badargonj Branch
5.4.2Cost of practicing PR tools
5.5.0 Findings of AIBL for PR

5.5.1 Roles and Objectives
5.5.2 Objectives of AIBL for PR
5.5.4 Proactive PR versus reactive PR
5.5.5Huttons framework for defining public relations
5.5.6 Types of PR used by AIBL
5.6.0 Survey Result
5.6.2 Responded from the Customers
5.6.3 Responded from Bank employee
5.7.0 Analysis
5.7.1 Table & Chart for showing Respondents responded
5.8.0 Performance of AIBL Badargonj Branch at a glance
5.8.1 Sales in Total Number
5.8.2 Profit in Total Amount
5.8.3Sales in Total Number

73
5.0Introduction to Findings &Data Analysis:In this chapter the empirical data

presented in chapter four will be analyzed and compared to the theories brought up in
the conceptual framework based on the literature review. First a within-case analysis
will be conducted of the AIBL.
5.1.0 Data Sources: In order to meet the data requirement and collect the above
mentioned information following sources has been used:
a. Primary Data Sources: Primary data has been collected from the individual account holder
by questionnaire survey, Interview from Banks Manager & officers personal observation of
banking activities regarding PR. Also oral conversation has been done with different customers of
the bank.
b. Secondary Data Sources:Important sources of secondary data for conducting this research
were:
Different reports and journals of Al-arafahIslami Bank
Brochures and leaflets of the bank

Head office circulars
PR department of AIBL.
Annual reports.
Some unpublished information.
Relevant business research books.
Website of the bank, Daily& monthly affairs of bank.
5.2 Data collection instruments:Data collection instrument is the questionnaire with

mostly close-ended as well open-ended questions.
5.3 Data processing:

The data has been collected from the customers through structured questionnaire. After
that, data has processed through the following ways.
At first the questionnaires has given a serial number.
Customers answers are categorized according to their personal information, present
banking habit, experience, preference, attitude, behavior about AIBL and so on.
After that customers answer are recorded in numeric figure.

74
5.3 Analyzing the data: After processing the data, analyze it according to requirement of
the topic.
5.4.0 Findings:
During my thesis period I observed, found, evaluate & seen that among the various PR
tools such as annual report, speeches, sponsorship on various events, press release etc.
AIBL practices some specific PR tools that is give sponsor on various events, greeting to
customers & public through giving Eid card, distributing calendars at the beginning of the
new year, arranging various ceremony on bank & social event such as bank anniversary,
observe Iftar Mahfil etc. inviting the customers & public very cordially. I found the
following things.
Majority of the respondent mentioned that they dont know about the sponsorship
program which is given by AIBL.
A number of customers say that need to aware about service of AIBL.
THE number customers say about help desk.All the respondents are satisfied about the
safety, security, reliability of bank & empathy of employee.
The number of respondents is not fully satisfied with the existing environment of bank.
AIBL perform PR activities which is not adequate in highly competitive banking

environment.
All the respondents are satisfied about the safety, security, reliability of bank &
empathy of employee.
The number of respondents is not fully satisfied with the existing environment of bank.
AIBL perform PR activities which is not adequate in highly competitive banking

environment.
Management of AIBL in Badargonj branch unwilling to spend money.
Now I can show the PR tools used by AIBL in the year 2012 to 2015 by the following
table & column..

75
5.4.1 Practices of PR tools in AIBL in Badargonj Branch
Practices & distributing of PR tools in Badargonj branch
(01-01-2015 to 31-12-2015)
S.L No. Tools used by bank Number of tools
2012 2013 2014 2015
1. Calendars 350 380 420 500
2. Eid card 60 90 150 210
3. Arranging ceremony 03 05 04 05
4. sponsorship 02 04 04 05
5. Arranging seminar 01 0 02 01
6. Donation(blanket) 100 120 150 180
7. Publications 06 07 09 13
8. Publicity in media 06 07 10 14
Table: 5.1 Practices & distributing of PR tools in Badargonj branch
5.4.2Cost of practicing PR tools

Total spending in PR activities In Badargonj branch
(01-01-2015 to 28-02-2016)
S.L No. Year Amount ( Tk.) Growth
1. 2012 37,000 16.29%
2. 2013 45,000 20.14%
3. 2014 54,000 23.51%
4. 2015 67,000 27.45%
Table: 5.2Total spending in PR activities In Badargonj branch.
Source: Statement of affairs in Badargonj Branch

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5.5.0 Findings of AIBL for PR

5.5.1 Roles and Objectives
Definitions
At AIBL top management level PR is defined as: All contacts with media initiated by the
bank itself, and media publicity as a result of other activities initiated by the bank. In other
words: Everything that is a result of direct or indirect activities by the bank that leads to
publicity is defined as PR. This definition is not direct in line with definitions stated
in theory, but not that far away either. Partly, it is in line with the statement using
communications to build and hold goodwill provided by Hutton (1999). At AIBL PR is
viewed as activities that lead to publicity in media. The company works also with
communication toward other target groups than public media, but this is not by AIBL
defined as PR as it is in general theories. This supports the theories that PR is hard to
define.
5.5.2 Objectives of AIBL for PR

According to operation manager of AIBL Md.Mahfujul Islam, the prim &main objectives
of bank is to build long-term sustainable relationship with customers, employee, media,
corporate & financial public. That is why bank keep good relation with all people those
are related with bank.

AIBL has a broad definition of their publics, but specific publics are segmented and
targeted in order of importance, with the customer segment as priority, therefore
AIBLs strategy is partly in line with theory.
Wells & Spinks (1999) recommend establishment of PR activities with the community
in hole. AIBL partly agrees with this theory. Even though the community is not themost
important target group, some PR activities are directed to the entire community.
5.5.4 Proactive PR versus reactive PR

Public relations can be characterized either as proactive or reactive. Proactive PR is
offensive and opportunity seeking to promote products and services. Reactive PR is
defensively oriented and problem solving. It is undertaken as a result of external
pressure ( Shimp, 2000) .
In the tactics and strategies utilized by AIBL, it can be ob served that they are
somewhere between proactive and reactive with more emphasizingon pro-activity.
AIBL consider them self not as proactive as they want to. And they are focusing on being
more proactive in their future approach.

77
5.5.5Huttons framework for defining public relations

To be able to define AIBLs role in PR, and to be able to plot the bank in
Hutton s three dimensional cube (figure 5.1 on the next page) we identified where
the bank was located in the three dimensions of; initiative, image and interest.
Position of AIBL
Figure: 5.1 AIBL in Huttons 3D framework
Initiative
AIBL is somewhere between proactive and reactive with more emphasis on pro-activity in
their PR activities. Therefore AIBL can be placed in the middle of the scale
between proactive and reactive a little closer to the proactive side.

78
Image
At AIBL the PR activities are used both to build an image of the organization
and to inform and educate about products and services. Since thefocus today is to
inform and educate about the genuine knowledge within the bank, AIBL can be
placed at the reality side in the image category.
Interest
When examining AIBLs main interest as public or client focused, it can be seen
that both existing customers and the general publics with future potential customers
are in focus. The main emphasize is on existing customers, and therefore AIBL
can be seen with a slightly stronger focus on the clients than the publics in the interest
category.
When plotting the characteristics of AIBL into the three dimensional cube ( figure
5.1), it can be observed that that the nearest role in the framework is role number
six, the relationship management role. The publics support is vital for the organization
in its long-term objectives. Emphasize is on mutual trust, cooperation and whenever
possible, a win-win situation between the client-organization and the customer. This
matches to a great extent the objectives and way of working at AIBL.
5.5.6 Hutton hierarchy of PR
When roles, functions and tools of AIBL are put into Huttons hierarchy of PR
(figure 5.2 on next page) the following can be ob served as an overview of the
organization to distinguish different characteristics. Issues concerning AIBL are
highlighted, italic and underlined in the figure
Figure 5 .2 AIBL in Huttons hierarchy of PR

SOURCE: Authors own construction adapted from Hutton (1998)

79
5.5.7 Types of PR used by AIBL

Wells et.al. (2003) has developed a framework to describe the five different types of PR
that refer to relationships with various stakeholders. According operation manager of AIBL ,
Md. Mahfujul islam the following types are has taken by AIBL.
Media relations
AIBL keep good relation with regional newspaper namley Juger Alo, national
newspaper, electronic media for protecting bank image.
Employee relations
AIBL also keep good relation with employee for dealing good with customers.
Financial relations
AIBL keep good relation various financial relation for maintaining banking activities.
Corporate relations
AIBL also keep good relation with various prominent institutions.
Public affairs
AIBL keep good relation with various public such as VIP, business man, professional etc.
When observing the relationships of AIBL it can be seen that the most important relation
is the one between AIBL and their customers. This category can be found in media
relations, financial relations and corporate relations. Secondly by priority, AIBL place
media relations. This is not a goal in itself; instead it is a medium to reach their
customer s and stakeholder s. Employee relations are also of high importance within
AIBL where it is used to stimulate and to motivate employees. It can be seen that
AIBL identifies the same relation categories as described in theory.
5.7.0 Survey Results
5.7.1 Highlights of respondents response from questionnaires

The study focused on some important dimensions of public relation activities in banking
industry: A case study on AIBL Badargonj branch that helps to build customer relation &
protect bank image. So public relation means building long-term sustainable relation to its
customers& various public. That is practiced & provided by the banking sectors in
Bangladesh. Reliability is the company ability to deliver promises in time. Responsiveness
is the degree to which customers perceive service providers readiness to assist them
promptly. Assurance is the degree of courtesy of service providers workers and their
ability to communicate trust to their customers. Empathy is the care and importance the
service provider gives to an individual customer, and the degree to which specific
customer needs and preferences can be understood and articulated. Seminar & various

80
events help bank to inform to customers about various product & services properly and
build long-term relation.
The study used survey to examine the various significant public relation dimensions and
examine the public relation practices of AIBL, provides the following results in number of
respondents response:
5.7.2 Results of Customers survey according to the number of responses
(1). I think AIBL effectively build relation with you.
Strongly Agree-12 Neutral-02 Disagree-0 Strongly

Agree-08 disagree-0
For the above statement 08 respondents responded strongly Agree, 12 Agree, 0 Neutral
& 0Strongly disagree. It shows that majority of the respondents think that AIBL able to
built relation with customers effectively.
(2).Sometimes AIBL arranges seminar on a specific topic & invite you cordially.

Agree-0 disagree-4
For the above statement 0 respondents responded Strongly Agree, 01 Agree, 05

Neutral, 12 Disagree & 04 Strongly Disagree. It shows that majority of the
respondents are disagree with the statement.
(3). How frequently AIBL arranges various events?
Regularly-03 Occasionally-01 Sometimes-02 Irregularly- Very few-

12 04
For the above statement 03 respondents responded regularly, 01 occasionally 02

Sometimes, 12 irregularly & 04 Very few. It shows that majority of the respondents
think that AIBL arrange various events irregularly.

81
(4). AIBL publishes Annual reports & use good quality papers & print devices.

Agree- disagree-
17 01
For the above statement 17 respondents responded Strongly Agree, 03 Agree 0

Neutral 01 Disagree & 01 Strongly disagree. It shows that majority of the respondents
are strongly agree with this statement.
(5).A number of events are organized & give sponsorship for informing about AIBL.

Agree-0 disagree-05

Neutral06 Disagree & 05 strongly disagrees. It shows that majority of the respondents
are agree with the statement.
(6).AIBL develops community relation which helps protect bank image.

Agree-09 disagree-0
For the above statement 09respondents responded Strongly Agree, 11 Agree, 02

Neutral, 06 disagree & 05 strongly agree. It shows that majority of the respondents are
agree with this statement.
(7).Responsiveness of AIBL is enough for getting service.
Strongly Agree- Agree-02 Neutral-02 Disagree-0 Strongly disagree-

18 0
For the above statement 18 respondents responded Strongly Agree, 02 Agree 02Neutral
0 Disagree & 0 Strongly disagree. It shows that majority of the respondents think that
responsiveness of AIBL is enough.
(8).Reliability of AIBL is consistent & strength than others.
Strongly Agree-07 Neutral-0 Disagree-0 Strongly disagree-0

Agree-15

82
For the above statement 15 respondents responded Strongly Agree, 07 Agree0Neutral,

0 Disagree & 0 Strongly disagree. It shows that majority of respondents responded that
Reliability of AIBL is strength & consistent.
(09). Officers of AIBL show high empathy to customers.

Agree-07 disagree-0
Neutral 0 Disagree & 0 strongly disagree. It shows that majority of the respondents have
responded that AIBL show high empathy to customers.
(10). AIBL gives proper assurance about safety & security of your deposit.

Agree-16 disagree-0
For the above statement 16 respondents responded Strongly Agree , 05 Agree, 01

Neutral,0 Disagree, & 0 Strongly disagree. It shows that majority of the respondents are
strongly agree with the statement.
(11).The existing environment of AIBL is attractive.
Strongly Agree-10 Agree-11 Neutral-01 Disagree Strongly

disagree

Neutral, 0 Disagree, & 0 strongly disagree. It shows that majority of the respondents are
(12) AIBL is pioneer in case of launching new product & service (various scheme)
Strongly Agree- Agree -07 Neutral-07 Disagree-0 Strongly

08 disagree-0


83
(13) AIBL provides high quality banking service
Strongly Agree -09 Agree-10 Neutral-02 Disagree -0 Strongly

disagree-0

Table-5.2 Results of customers survey according to number of responses
5.7.3 Results of Employees survey according to the number of responses

(1) I think AIBL effectively build relation with you.
Strongly Agree-02 Neutral-0 Disagree -0 Strongly

Agree -07 disagree-0
For the above statement 07 respondents responded Strongly Agree , 02 Agree, 0 Neutral,
0 Disagree, & 0 strongly disagree. It shows that majority of the respondents are strongly
(2).Sometimes AIBL arranges seminar on a specific topic & invite you cordially.
StronglyAgree- Agree-04 Neutral-02 Disagree-01 Strongly

02 disagree-0

Neutral, 01 Disagree & 0 Strongly Disagree. It shows that majority of the respondents
are agree with the statement.
(3).How frequently AIBL arranges various events?
Regularly-02 Occasionally-04 Sometimes-02 Irregularly- Very few-0

01
For the above statement 02 respondents responded regularly, 04 occasionally 02

Sometimes, 01 irregularly & 0 Very few. It shows that majority of the respondents
think that AIBL arrange various events occasionally.

84
(4).AIBL publishes Annual reports & use good quality papers & print devices.

Agree-07 disagree-0

Neutral 0 Disagree & 0 strongly disagree. It shows that majority of the respondents are
strongly agree with this statement.
(5).A number of events are organized & give sponsorship for informing about AIBL.

Agree-02 disagree-0

Neutral01 Disagree & 0 Strongly disagree. It shows that majority of the respondents are
agree wit with this statement.
6).AIBL develops community relation which helps protect bank image.

Agree-05 disagree-0
For the above statement 05respondents responded Strongly Agree, 04 Agree, 0

Neutral, 0 disagree & 0 strongly agree. It shows that majority of the respondents are
(7).Responsiveness of AIBL is enough for getting service.

Agree-06 disagree-0
For the above statement 06 respondents responded Strongly Agree, 03 Agree 0Neutral
0 Disagree & 0 Strongly disagree. It shows that majority of the respondents think that
responsiveness of AIBL is enough.

85
(8). Reliability of AIBL is consistent & strength than others.
Strongly Agree- Neutral-0 Disagree-0 Strongly

Agree-05 04 disagree-0
For the above statement 05 respondents responded Strongly Agree , 04

Agree0Neutral,0 Disagree & 0 Strongly disagree. It shows that majority of
respondents responded Reliability of AIBL is strength & consistent.
(09). Officers of AIBL show high empathy to customers.

Agree-05 disagree-0

Neutral 0 Disagree & 0 strongly disagree. It shows that majority of the respondents have
responded that AIBL show high empathy to customers.
10). AIBL gives proper assurance about safety & security of your deposit.

Agree-06 disagree-0

Neutral,0 Disagree, & 0 Strongly disagree. It shows that majority of the respondents are
(11).The existing environment of AIBL is attractive.
Strongly Agree-05 Agree-03 Neutral-01 Disagree-0 Strongly

disagree-0


86
(12) AIBL is pioneer in case of launching new product & service (various scheme)
Strongly Agree -05 Neutral-01 Disagree-0 Strongly

Agree-03 disagree-0

(13) AIBL provides high quality banking service
Strongly Agree-02 Neutral- Disagree -0 Strongly disagree-

Agree -05 02 0

Table: 5.3 Results of customers survey according to number of response
5.8.0Analysis:
5.8.1 Table & Chart for showing Results of both customers & employees responses
I can show the respondents (Customers & Employees) responded by the following table as
a Percentage basis.
Question No.1 I think AIBL effectively build relation with you.
Total respondents-31 Strongly Agree Neutral Disagree Strongly

Questionnaire scale Agree disagree
Customers-22 36% 65% 9% 0% 0%
Empolyee-09 77% 23% 0% 0% 0%
Comment: From the above table I can say that there is a great difference between the
opinion of customers& employees about whether AIBL able to effectively build relation
with customers or not. So bank should take effective steps to reduce this gap.
I can show the respondents responded by the following Venn diagra

87
100
77
80 65
60
36
40 23
20 9
0 0 0 0 0
0
Strongly Agree Neutral Disagree Strongly
Agree Customers Employees Disagree
Graph: 5.1 Results of both customers & employees responses of question no.-1
Question No.2Sometimes AIBL arranges seminar on a specific topic & invite you
cordially.
Total Strongly Agree Neutral Disagree Strongly

respondents-31 Agree disagree
Questionnaire
scale
Customers-22 0% 4% 23% 55% 18%
Empolyee-09 22% 44% 22% 12% 0%
opinion of customers & employees response about whether AIBL able to arranges
seminar on a specific topic & invite customers cordially or not. So bank should take
effective steps to reduce this gap.
I can show the respondents responded by the following Venn diagram
60 55
50 44
40
30 22 23 22
18
20 12
10 4
0 0
0
Strongly Agree Agree neutral Disagree Strongly
Disagree
Customers Employees

88
Question No.3 How frequently AIBL arranges various events?

Customers-22 14% 4% 9% 55% 18%
Empolyee-09 22% 44% 22% 12% 0%
opinion of customers & employees response about how frequently AIBL arranges
various events? So bank should take effective steps to reduce this gap.
I can show the respondents responded by the following Venn diagram..
70
60 12
50
40 Employe
30 es
22 44 54
20 22 0
10 19
14
9
0 4
Agree Disagree
Graph: 5.2Results of both customers & employees responses of question no.-3
Question No.4AIBL publishes Annual reports & use good quality papers & print devices.

Customers-22 77% 14% 0% 4% 5%
Empolyee-09 77% 23% 0% 0% 0%

89
80 77 77
70
60
50
40
30
23
20 14
10 4 5
0 0 0 0 0
Agree Disagree
Customers
Employees
opinion of customers & employees response aboutAIBL publishes Annual reports & use
good quality papers & print devices. So bank should take effective steps to reduce this
gap. I can show the respondents responded by the following Venn diagram
Question No (5).A number of events are organized & give sponsorship for informing
about AIBL

Customers-22 0% 41% 9% 28% 22%
Empolyee-09 22% 55% 11% 12% 0%
opinion of customers& employees response aboutA number of events are organized &
give sponsorship for informing about AIBL. So bank should take effective steps to reduce
this gap.I can show the respondents responded by the following Venn diagram
100
50 55
22 11 12
41 0
9 28 22 Customers
00
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Customers Employees

90
Question No.6 AIBL develops community relation which helps protect bank image.

Customers-22 41% 50% 9% 0% 0%
Empolyee-09 55% 45% 0% 0% 0%
opinion of customers & employees response aboutAIBL develops community relation
which helps protect bank image.So bank should take effective steps to reduce this gap.
I can show the respondents responded by the following Venn diagram.
60 55
50
50 45
41
40
30
20
9
10 0 0 0 0 0 0 0
0
Agree Customers Employees Disagree
Question No. 7 Responsiveness of AIBL is enough for getting service.

Customers-22 82% 9% 9% 0% 0%
Empolyee-09 67% 33% 0% 0% 0%
customers & employee response aboutResponsiveness of AIBL is enough for getting
service. So bank should take effective steps to reduce this gap.
I can show the respondents responded by the following Venn diagram

91
90 82
80 67
70
60
50
40 33
30
20 9 9
10 0 0 0 0 0
0
Disagree
Customers
Employees
Question No.8 Reliability of AIBL is consistent & strength than others.

Customers-22 68% 32% 0% 0% 0%
Empolyee-09 55% 45% 0% 0% 0%
opinion of customers & employees response aboutReliability of AIBL is consistent &
strength than others.So bank should take effective steps to reduce this gap.
150
55
100
68 45
50
32
0 00 00 00
Disagree
Customers Employees

92
Question No. 09 Officers of AIBL show high empathy to customers.
Total respondents- Strongly Agree Neutral Disagree Strongly

31 Questionnaire Agree disagree
scale
Customers-22 32% 60% 8% 0% 0%
Empolyee-09 55% 22% 23% 0% 0%
Comment: From the above table I can say that there is a greater difference between the
customers & employee response aboutOfficers of AIBL show high empathy to customers.
So bank should take effective steps to reduce this gap. I can show the respondents responded
by the following Venn diagram.
70 60
60 55
50
40 32
30 22 23
20
8
10 0 0 0 0
0
Agree Disagree
Customers Employees
Question No. 10- AIBL gives proper assurance about safety & security of your deposit.

Customers-22 73% 23% 23% 0% 0%
Empolyee-09 55% 45% 4% 0% 0%
opinion of customers & employees response aboutOfficers of AIBL show high empathy
to customers. So bank should take effective steps to reduce this gap.

93
140
120
100 55
80
60
40 45
73
20
23
0 0
4 0 0
Agree Disagree
Customers Employees
Question No.11 The existing environment of AIBL is attractive.

Customers-22 45% 50% 5% 0% 0%
Empolyee-09 55% 34% 21% 0% 0%
opinion of customers & employees response aboutthe existing environment of AIBL is
attractive. So bank should take effective steps to reduce this gap.
60 55
50
50 45
40 Strongly Agree
34
Agree
30
21 Neutral
20
Disagree
10 5
Strongly Disagree
0
Customers Employees

94
Question No. 12 AIBL is pioneer in case of launching new product & service (various
scheme)
Total respondents- Strongly Agree Neutral Disagree Strongly

31 Questionnaire Agree disagree
scale
Customers-22 36% 32% 32% 0% 0%
Empolyee-09 33% 55% 12% 0% 0%
opinion of customers & employees response aboutAIBL is pioneer in case of launching
new product & service (various scheme). So bank should take effective steps to reduce this
gap. We can show the respondents responded by the following Venn diagram
Question No.13 AIBL provides high quality banking service

Customers-22 36% 32% 32% 0% 0%
Empolyee-09 33% 55% 12% 0% 0%
Comment: From the above table we can say that there is a greater difference between the
customers & employee response aboutAIBL is pioneer in case of launching new product
& service (various scheme). So bank should take effective steps to reduce this gap. I can
show the respondents responded by the following Venn diagram.

95
5.9.0 Performance of AIBL Badargonj Branch at a glance
5.9.1 Sales in Total Number

(01-07-2015 to 31-12-2015)
Product July August September October November December

category
Demand 2281 2311 2349 2376 2395 2426
Deposit
Time 573 581 592 591 599 623
Deposit
Investment 318 315 335 339 332 338
Schemes 2818 2821 2807 2787 2783 2793
Comment: From the above table & diagram I can say that the growth sales of the various
product & schemes are increasing.

96
(01-07-2015 to 31-12-2015)
Profit ( In Taka)
July August September October November December
6,001,709 6,756,238 7873117 8510348 9,450,831 10,884,035
Comment: From the above table & diagram I can say that the growth of profit of AIBL is
increasing rapidly.
Source: AIBL Badargonj Branch Affairs 2012
Comment: From the above table & diagram I can say that the growth sales of the various
product & schemes are increases.
Source: AIBL Badargonj Branch Affairs 2015
5.10 Relation Between the practices of PR tools & sales & profit in bank:
From the table 5.2 ontotal spending in PR activities In Badargonj branch& Graph; 5.15 on
profit in total number in various years, in this chapter, I can say that the relation between
PR tools & profit and sales is positive. So bank should understand the importance of
practicing PR tools, should give separate budget & department of PR.

97
Chapter-06 highlights
6.1.0 Recommendations
6.2.0. Conclusion
6.1.0 Recommendations:
After a great case study about How Public Relation Adds value in Banking industry: A
case study on AIBL in Badargonj Branch, I have found several things & events that
affect the banking activities both directly & indirectly. During my thesis period I observed
& noticed some specific factors that affect public relation adversely. So management may
be followed the following issues for building long- term sustainable relationship with
clients, employee, media, public affairs, corporate relation etc. These are
1. Change the attitude of management: Management should change the attitude about
unwillingness to spend money at any bank marketing activities. It is true that, all effort
will be inactive if money is not available. Money is the stimulus of creating favorable
image, Persuade, & convincing to someone about something.
2. Public relation activities branch & Regional basis:Bank should perform public
relation activities as branch & regional basis because region & local people encouraged
with banking activities. If they are motivated by the bank, they go to the bank again &
again. That is why bank arrange various public relation activities.
3. Increase of promotional activities about AIBL:Promotion means communication

between buyer & seller. Different types of products and services are available in AIBL but
clients are not concerned. So bank should increase promotional activities for increasing
familiarity & popularity of bank. It can be advertised in news paper through PR activities.
Billboard in busy area, arrange seminar & workshop.
4. Public relation desk/ department:In recent years, public relation is the prime &
paramount promotional activities that is very much cost sensitive. That means by the PR

98
activities, organization can take a distinct position toward the society. So AIBL should
keep separate PR desk/ department.
5. Fast & consistent service:Service is one of the most important elements for
satisfaction of banking organization. Prompt service should be given to the customers. In
this regard bank should arrange job rotation regularly for employees to improve the skills
in different types of service. This will increase the efficiency of the service. So AIBL
should provide fast, reliable & consistent service.
6. Help Desk: Clients like these types of Banks who are very helpful. So, AIBL
Badargonj Branch enriches their help desk by lot of information, documents.
7. Digital Chart:Digital chart is an electronic board which focused update rate of

financial products or services like as interest rate of deposit, loan, schemes, foreign
currency Rate etc. So, AIBL Badargonj Branch uses a Digital Chart for their Products &
Services.
8. Increase employee relation: Employees are the main component of providing service
to the customers. If they are not satisfied to the bank, it will affect the banking activities.
So bank should improve employee relation. Bank should be thinking employee as a
partner.
9. Increase media relation: At present media play a vital role in focusing the
organization positively as well as scandal. So bank should keep good relation to its various
media such as electronic, print, internet media.
10. Public affairs:Bank should keep good relation with various public such as media
public, financial public, and corporate public.
11. Increase empathy of officers:Customers of bank go to the bank again & again if
employee of bank shows high empathy at least minimum depending on the situation. So
bank should give attention to increase empathy of officers.
12. Increase reliability of bank:Bank should provide reliable service to customers. It

helps to take distinct position into the customers mind.
13. Improving environment of bank:The environment of commercial bank plays a vital

role for attracting tom the customers. So bank should improve the environment.

99
14. Reducing length of Service encounter:Service encounter means duration of

providing service by the bank to the customers. So bank should reduce the length of
providing service.
15. Arrange various events & give sponsorship:The major public relation tools are
various events & sponsorship which help to bank creating positive image. So bank should
arrange various events & give sponsorship at various events for taking a distinct position
to the consumers mind.
16. Proper safety & security:Bank should give proper safety & security of deposit of
customers.
17. Thinking PR as a building long-term relation: At present public relation play a vital
role in banking industry for creating positive image bank. It helps to build long- term
sustainable relation with customers. So bank should think PR as a tool for building
relation.
18. Separate budget for PR activities:Due to increase importance of public relation,

bank should keep separate budget for PR.
Bank also may follow the following issues
To need high concentration about public relation activities.

Providing prompt service in account opening.
Now a day, the online banking service is very much popular in all over the world, so
the bank should try to develop in this side.
AIBL should increase Debit card & credit card facilities.
AIBL online service should be fast & accurate.
The website of AIBL is not good enough; most of the pages are under construction.
The page should be constructed as soon as possible.
Should increase the ATM Booths.
More manpower is required to run the business smoothly.
Experienced and expert personnel should be kept within the bank, which will lead to a
quality selection of clients
AIBL should more focus on customer needs. They need to concentrate more on their
existing services and product innovation.
A yearly conference with the employees should be arranged where they will exchange
their views with the management about different aspects. This will help to increase the
efficiency of the employees.
More emphasis should be given on the customers complaint.
Informal training can be a way to improve the skills of the employee. Allocating job
responsibility to the employees according to their profit.

100
Try to create a good image to customers through different promotional tools for protecting
bank image & avoided negatives image. Finally bank considers corporate reputation and
trust as vital for the organizations capability to sell financial services, and therefore
manage this with high priority.
6.2.0 Conclusion
Al-arafahIslami Bank Limited is one of the leading Islamic shariah based commercial
bank in Bangladesh.AIBL is committed to provide excellent service to its valued
customers. The management of AIBL always gives special efforts to build & maintain
sustainable relation to its various customers, public, media for protecting bank image and
uphold the interest and trust of customers. Bank tries to best to keep its commitment
through practicing PR activities. Recent research shows that the banking industry has been
caught in a negative trend regarding reputation which could have been avoided through PR
activities. It is also a set of communications techniques which are designed to create and
maintain favorable relations between an organization and its publics.Findings show that
banks do not define their communication activities as PR, but still utilize it to a high
degree. Themain objective of bank is building and maintaining of relationships with the
publics. Banks utilize many different tools to reach PR objectives; many of these are
used at the local branch level which is not adequate in highly banking environment.
The overall customer service (i,e) Safety, security, reliability, empathy & overall
performance of AIBL are better than most other bank. So bank should give high
concentrate in practicing PR activities because it is most effective way to build long-term
sustainable relation to its customers & public. It is also cost effective & highly credible.
Bank should keep separate PR department.

101
7. List of References
Book & Articles References
1.Ball, D. Coelho, P.S, Machs, A. (2004). The role of communication and trust in
explaining customer loyalty: An extension to the ECSI model. European Journal of
Marketing, Vol 38(9/10), pp. 1272-1293.
2. Barnes, B.E. Schultz, D.E. (1999). Strategic Brand Communication Campaigns. Illinois:
NTC Business Books.
3. Beavers-Moss, D. (2001). The Credibility Enhancer. Bank Marketing, May 2001, pp.
2731.
4. Blaxter, L. Hughes, C. Tight, M. (2001). How to research 2nd ed. London: Open
University Press.
5. Broom, G.M. Casey, S. Ritchey, J. (1997). Toward a Concept and Theory of
Organization-Public Relationships. Journal of Public Relations Research, 9(2), pp. 83-98.
6. Broom, G.M. Cox, M.S. Krueger, E.A. Liebler, C. M. (1989). The Gap Between
Professional and Research Agendas in Public Relations Journals. Public Relations Research
Annual, Vol 1, pp. 141-155.
7. Budd, J.F. (1995). How to Manage Corporate Reputations. Public Relations

Quarterly, Vol 39, Issue 4, pp. 11-15. Agreement (n.d): Personal Selling, Relationship
Building, and Sales Management. Retrieved December 6th, 2009.
8. Avkirin, N. K. (1995), Developing an Instrument to Measure Customer Service

Quality in Branch Banking, International Journal of Banks Marketing, Vol. 12(6), pp. 10-
9.C. Gringos., Service Management and Marketing Managing the Moments of Truth in
Service Competition, Lexington Books, USA, 1990.
10.David S. Moore and George P. McCabe (February 2005). "Introduction to the practice
of statistics" (5th edition). W.H. Freeman & Company. ISBN 0-7167-6282-X.
11.Debnath R. M. (2004), Business of Banking, 1st edition, Lotus publishers, Dhaka
12.Kotler, Philip, (2003-2004), Marketing Management, 11th edition, Prentice Hall,

New jersey,USA.
13. Kotler, P. and Armstrong, G. (2008): Principles of Marketing. New Jersey, USA:
Pearson Education, Inc.
14. Kotler, P. and Keller, K. L. (2009): Marketing Management. New Jersey, USA:
Pearson Education, Inc.

102
15. Robert Groves, et alia. Survey methodology (2010) Second edition of the (2004) first
edition ISBN 0-471-48348-6.
16.Denscombe, M. (2003). The Good Research Guide 2nd ed. Philadelphia: Open
University Press.
17. Dolphin, R.R. (2004). Cor porate reputation a value creating strategy. Corporate
Governance, Vol 4( 3), pp. 77-92.
18. Dolphin, R.R. (2000). Is corporate communications a strategic function?
Management Decision, 38(2), pp. 99-106.
19.Eriksson, L.T. Wiedersheim-Paul, F. (2001). Att utreda forska och rapportera.
Malm: Liber Ekonomi.
20. Gomm, R. Hammer lsey, M. Foster , P. (2000). Case Study Method. London: Sage
Publications Ltd.
21. Gummesson, E. (1991). Qualitative Methods in Management Research. London:
Sage Publications Ltd.
22. Hon, L.C. (1998). Demonstrating Effectiveness in Public Relations:
Goals,Objectives, and Evaluation. Journal of Public Relations Research. Vol 10, No. 2, pp.
103-135.
23. Hon, L.C. (1997). What have you done for me lately? Exploring eff ectiveness
in public relations. Journal of Public Relations Research. 9(1), pp. 1-30.
Document References
1. Annual Report of AIBL2014
2. Prospects of AIBL 2012 to 2015
3. Statement of affairs of AIBL Badargonj branch
Web References
1. www.AIBLbd.com
2. http://www.knowthis.com/public relation/objectives-public relation
3. www.weikipedia.org.
4. www. economicarticle.org
5. www.businesswire.com

103
Appendix
i) Survey Questionnaire
Public Relation (PR) is an important component of promotion mix. I can define the Public
relation by the following-PR means building long-term sustainable relation to its various
customers, employees, bankers, public, opinion leader as well as media for promoting
products & services or protecting bank image. Bank can do it through maintaining good
relation with press, giving speeches about social awareness, arranging seminars & giving
donation at crisis moment & sponsorship to various events. In the competitive banking
environment it is very much important for creating loyal customers.
Dear Sir
I am a student of M.B.A 2nd batch in department of marketing, faculty of business studies

of Begum Rokeya University, Rangpur. As a requirement of the thesis program, I am
continuing anthesis program at AIBL in Badargonj branch for three months. My topic is
How public relation adds value in banking industry: A case study on Al-arafah
Islami Bank Ltd. Badargonj Branch. I need some primary data from my target group
to successfully complete my research or survey. I am pleased to inform you that you are
one of my target groups. So your cooperation is highly needed to complete it successfully.
I shall be very grateful to you if you provide sometime for sharing the below question &
answer them .I also ensure you that this information is only used for academic purpose and
it will be confidential.
Thanked by,
Md. Abu jaid
ID No. 021308040
Dept. of Marketing
Begum Rokeya University,Badargonj.
Name of respondent .. Age.
Sex: Male Female
Occupation: Service holder Businessman
Students others
Marital status: Married Unmarried

104
1) How do you get idea of AIBL?
Family Friend
Banker (Others)
2) The number of account do you have in AIBL

One two
Three More than three
3) Which type of account is it?
Current MSD DPS
MTDR Other
4) How frequently do you make transaction with AIBL?
Regularly Irregularly
Occasionlly Sometimes
6) I think AIBL effectively build relation with you.
Strongly agree [5] Agree [4] Neutral [3]
Disagree [2] strongly disagree [1]
7) Sometimes AIBL arranges seminar on a specific topic & invite you cordially.
8) How frequently AIBL arranges various events?
9) AIBL publishes Annual reports & use good quality papers & print devices.

105
10) A number of events are organized & give sponsorship for informing about AIBL.
11) AIBL develops community relation which helps protect bank image.
12) Responsiveness of AIBL is enough for getting service.
13) Reliability of AIBL is consistent & strength than others.
15) Officers of AIBL show high empathy to customers.
16) AIBL gives proper assurance about safety & security of your deposit.
19) The existing environment of AIBL is attractive.

106
20) AIBL is pioneer in case of launching new product & service (various scheme)
Thanks
II. Survey Result
To calculate this survey result I can use a formula to identify the percentage
ofRespondents Responded Required Option for each question that compares the customers
and employees answer.
Calculation Method
Number of Respondents Responded Required Option
% = 100
Total number of Respondent (Customers/Employees)
% = Average Response of Customers/Employees for each question required options
-Here, each question required options 5 (a) Strongly Agree b) Agree c) Neither Agree nor
Disagree d) Disagree e) Strongly Disagree)
-Total number of Respondent 31 (Customers- 22, Employees- 09)

107

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1

1.1 Background of the study

1.2 Difference between Public relations (PR) & Advertising

1.5 Public Relation (PR) in banks

1.6 Reasons for choosing this topic

1.7 Rational of anthesis program

1.8 Objectives of the study

1.9Limitations of the Study:

1.10 Scope of the Study

MD. ABU JAID, ID: 021308040

1.1 Background of the study:

MD. ABU JAID, ID: 021308040

1.2 Difference between Public relations (PR) & Advertising

MD. ABU JAID, ID: 021308040

1.4 Public relation (PR) in service firm

MD. ABU JAID, ID: 021308040

1.5 Public Relation (PR) in banks

1.6 Reasons for choosing this topic

1.7 Rational of athesis program

MD. ABU JAID, ID: 021308040

1.8 Objectives of the study

To Know about potentiality of Shatoranji

1.9Limitations of the Study:

MD. ABU JAID, ID: 021308040

1.10. Scope of the Study

MD. ABU JAID, ID: 021308040

2.1 Meaning of Public relation

2.2 Role & objectives of PR

2.2.1 Defining publics

2.9 The Importance of the Four Models of Public Relations

2.12.2 Corporate reputation

2.12.3Public relation in banking industry

MD. ABU JAID, ID: 021308040

2.1 Meaning of Public relation

2.2 Role & objectives of PR

MD. ABU JAID, ID: 021308040

2.2.1 Defining publics

2.2.2PR: Objectives and Strategies

MD. ABU JAID, ID: 021308040

points out that there is tremendous variability in organizations explanation of PR s

2.3 Proactive PR versus reactive PR

MD. ABU JAID, ID: 021308040

attempts to repair a companys reputation, prevent market erosion, or regain lost

2.4 Huttons framework for defining public relations

Figure 2 .1 Huttons Three-Dimensional framework

Source: Huttons own research (1999)

Interest : The interest dimension can be described as the balance of intended

MD. ABU JAID, ID: 021308040

Initiative: The initiative dimension explains to what extent the PR function is

Persuasion : Persuasion includes the philosophies of PR that are proactive and

MD. ABU JAID, ID: 021308040

Image/reputation management: This role focuses on the image or reputation of the

2.5 Huttons hierarchy of public relations

Figure:2.2 Huttons hierarchy of public relations

MD. ABU JAID, ID: 021308040

2.7Common Public Relation Tools and Techniques: In order to build a

MD. ABU JAID, ID: 021308040

2.7.1 Wells et al (2003) Public Relation Tools:

MD. ABU JAID, ID: 021308040

MD. ABU JAID, ID: 021308040

2.8"Seven Cs of Communication for making effective Public Relation

1. Credibility: Communication begins in a climate of belief. This climate is built by the

MD. ABU JAID, ID: 021308040