Executive Summary National Bank Limited is a customer oriented financial institution. It remains dedicated to meet up with the ever growing expectations of the customer because at National Bank, customer is always at the center. Customer satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation.

• Artha Rin Adalat Ain 2003 Bangladesh Pdf Printers

It is seen as a key performance indicator within a business. So, assessing the level of customer satisfaction actually helps to measure an organization‘s position in business. I am doing my internship in National Bank limited with rotation on different desks which includes Accounts Opening, General Banking, Retail Banking, Clearing, Remittance, Loans and Advances etc. In this report “The Customer Satisfaction on different services of National Bank Limited”.

I will focus on various aspects of this Bank. Since they are standing at good position among the private banks, their financial position, market shares, marketing mechanisms, overall strengths and weakness, objectives, goals will be cross examined for analyzing the fact that how they were and how they will be in future.

Various types of analysis will help us to understand the comparative position and a transparent picture of this Bank that will help us to draw any comment at a glance. As I am directly in touch with customers, the report will deal with the service quality and customer satisfaction of National Bank Limited. A survey will be conducted on the customers of National Bank Limited. The objective of this report will be to determine how well National Bank Limited is satisfying the customers on different service grounds. Various important issues of customer satisfaction will be presented in light of the findings of the survey. Lastly, the findings will be examined to prescribe a set of specific recommendations to improve the overall service quality according to customers expectations and also to solve the existing problems in the whole organizational level.

INTRODUCTION During the last decade, banking became the most competitive industries of Bangladesh with a huge amount of growth. A large number of new banks have their places in industry and yet there are more to register in the list. In this modern era of business, banking activities have spread out in many areas like merchant banking, share trading, giving lease and so on.

In such a highly competitive service industry, the importance of customer satisfaction cannot be de-emphasized. National Bank Limited is one of the most renowned private commercial bank in Bangladesh. During a short span of time the Bank has been able to establish a good image in the Banking sector and has become a house hold name in the country due to several customers – friendly deposit and loans scheme. I am doing my internship in National Bank limited with rotation on different desks which includes Accounts opening, General Banking, Retail Banking, Clearing, Remittance, Loans and Advances etc. In this report “The Customer Satisfaction on different services of National Bank limited Bank Ltd.”, I will focus on various aspects of this Bank.

Since they are standing at good position among the private banks, their financial position, market shares, marketing mechanisms, overall strengths and weakness, objectives, goals will be cross examined for analyzing the fact that how they were and how they will be in future. Various types of analysis will help us to understand the comparative position and a transparent picture of this Bank that will help us to draw any comment at a glance. As I am directly in touch with customers, the report will deal with the service quality and customer satisfaction of National Bank limited. A survey will be conducted on the customers of National Bank limited.

The objective of this report will be to determine how well National Bank limited is satisfying the customers on different service grounds. Various important issues of customer satisfaction will be presented in light of the findings of the survey. Lastly, the findings will be examined to prescribe a set of specific recommendations to improve the overall service quality according to customers expectations and also to solve the existing problems in the whole organizational level. BANKING SECTORS OF BANGLADESH. Bangladesh Bank (BB) has been working as the central bank since the country’s independence. Its prime jobs include issuing of currency, maintaining foreign exchange reserve and providing transaction facilities of all public monetary matters. Bangladesh Bank is also responsible for planning the government’s monetary policy and implementing it thereby.

The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks (NCB’s), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFI’s). Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones.

Among the 12 foreign banks, Standard Chartered has become the largest in the country. Besides the scheduled banks, Samabai (Co-operative) Bank, Ansar-VDP Bank, Karmasansthan (Employment) Bank and Grameen Bank are functioning in the financial sector. Bangladesh Bank (BB) regulates and supervises the activities of all banks.

The BB is now carrying out a reform program to ensure quality services by the banks. The list of banks doing their operation in Bangladesh are- Nationalized Commercial Banks (NCBs) Name Telephone 1.

Sonali Bank 9550426-34, 8614588 2. Janata Bank 9560072-80, 9560042-43 3. Agrani Bank 9566153-54, 9566160-69, 4. Rupali Bank 9551624, 9554122, 9552183-4 Private Commercial Banks (PCBs) 1. Pubali Bank 9569050-2, 9551614-7 2.

Uttara Bank 9566067-9, 9551162, 9565732 3. National Bank Ltd. 9563081-5, 9561201 4. The City Bank Ltd. 9565925-34 5.

United Commercial Bank Ltd. 9560585 6. Arab Bangladesh Bank Ltd. 95608878, 9560312-6 7. IFIC Bank Ltd.

9562062, 9563020-29 8. Islami bank Bangladesh Ltd. 9552897-8, 9563040, 9563046-9 9. Al Baraka Bank Bangladesh Ltd. 9563768-9, 9565031-2 10. Eastern Bank Ltd.

National Credit & Commerce Bank Ltd. 9561902-4 12. Prime Bank Ltd. 9567265-70, 9564677 13. South East Bank Ltd. 9550081-5, 9551575, 9557714 14.

Dhaka Bank Ltd. 9556587-10, 9556583 15. Al-Arafah Islami Bank Ltd. 7123255-7, 9568007, 9569353 16. Social Investment Bank Ltd. 9559014, 9554855 17. Dutch-Bangla Bank Ltd.

9568537-39 18. Mercantile Bank Ltd.

Standard Bank Ltd. 9667224, 9667802 20. One Bank Ltd. 9564249, 7551799, 9564255-6 21. EXIM Bank 9553925, 9553872, 9566418 22.

Bangladesh Commerce Bank Ltd. 9559831-32, 9668170 23. Mutual Trust Bank Ltd. 9569318, 7113239 24. First Security Bank Ltd.

9560229, 9564733 25. The Premier Bank Ltd. 8819916, 9890547, 9890012 26. Bank Asia Ltd. 8117055, 8117066 27. The Trust Bank Ltd.

9870011 Ext.-4191 28. Shah Jalal Bank Limited (Based on Islamic Shariah) 9556011 Foreign banks 1.

American Express Bank 9561751-52, 9561496-97 2. Standard Chartered Bank 9561465, 9550181-90 3. Habib Bank Ltd.

9551228, 9555091-2,9563043-5 4. State Bank of India 9554251, 9553371 5. Credit Agricole Indosuez (The Bank) 8111959 6. National Bank of Pakistan 9560248-9 7.

Muslim Commercial Bank Ltd. 9563649, 9563650 8.

City Bank NA 9550063-64 9. Hanvit Bank Ltd. 8813270-73 10. 9660536-43 11. Shamil Islami Bank Of Bahrain EC 9666701-5 12. Standard Chartered Bank 9561465, 881718-9 Development Banks 1.

Bangladesh Krishi Bank 9560021-5, 9560031-35 2. Rajshahi Krishi Unnayan Bank 775008-9, 9569408 3. Bangladesh Shilpa Bank 9555150-9, 9566114 4.

Bangladesh Shilpa Rin Sangstha 95046 5. Bank of Small Industries & Commerce Bangladesh Ltd. 9564830, 9658190 Others 1. Ansar VDP Unnayan Bank 8313198, 8322181 2.

Bangladesh Samabai Bank Ltd. (BSBL) 3. Grameen Bank 8015755-8 4. Karmasansthan Bank 9563311 A.1 AN OVERVIEW OF NATIONAL BANK LIMITED National Bank Limited was established as the first hundred percent Bangladeshi owned Bank in the private sector. NBL started its never-ending journey from 23 March 1983. The Board of Directors of the Bank consists of the finest intellects of the country’s business, commerce and banking areas.

NBL brought a change in services in the banking sector besides the traditional Govt. Banks with its excellent difference. The success of NBL is for its cooperative, helpful approach, understanding the real banking needs of each and every client and concern for their benefits and welfare. From the beginning NBL had the great objectives about the Share holders- to maximize their facilities as well as dividend. Now NBL is bigger concern compare to others in the same industry holding 91 branches in the inland area.

In 1995 NBL acquired equity and management of Nepal Arab Bank Limited and in 1996 NBL opened a representative office at Myanmar. In different countries NBL has some exchange booths to facilitate the foreigners. With a string sense in all business area of commercial banking NBL could foresee tremendous growth in home bound remittance from Bangladeshi expatriates in USA, UK, Middle East and in different countries of the work. Consequently, NBL established a unique money remittance system with Western Union of USA for inbound and outbound remittance.

Still now, NBL has this sort of novelty service facilities. NBL always is committed to fulfill its ethical responsibility to the society, country and to the whole world. NBL has participated in the Brained Multi Purpose Project, a major enterprise undertaken for improving the ecological balance and the socio- economic conditions of the farmers the northern region of the country. Establishment of NBL Foundation, which operates National Bank Public School & College and sponsorship of various sports tournaments are few of the mentionable projects that display NBL’s commitment to the society.

Artha Rin Adalat Ain 2003 Bangladesh Pdf Printers

Besides the different types of Accounts, NBL has some special schemes that really represent bank’s concern about the clients, some of them are – MSS, SDS, SIS Credit Card, ATM services. A.2 BOARD OF DIRECTORS.

Moazzam Hossain: Chairperson Zainul Haque Sikder: Director Parveen Haque Sikder: Director Alhaj Khalilur Rahman: Director Prof. Mahbub Ahmed: Director Zakaria Taher: Director Ron Haque Sikder: Director Rick Haque Sikder: Director Lt. Azizul Ashraf, psc: Director Mabroor Hossain: Director A K M Enamul Hoque: Director Capt. Junior Level Senior Officer Grade-IIIB Probationary Officer Junior Officer Typist Office Assistance Security Staff Driver A.18 GROWTH OF THE BANK The National Bank Limited (NBL) is one of the most successful Private Sector Commercial Bank in our country, though it started its operation only nine years back. It has achieved the trust of the general people and made reasonable contribution to the Economy of the country by helping the people investing allowing Credit Facility. A.18.1 CAPITAL & RESERVES Year Authorized Capital Paid up Capital Reserve fund & surplus 2009 7450 28.22 2008 2450 18.55 2007 2450 12.19 2006 2450 8.78 2005 1000 6.02 Capital Management of the Bank is to maintain an adequate capital base to support the projected business and regulatory requirement.

NBL always maintain a prudent balance between Tier- 1 and Tier-2 capital. The Bank has maintained overall capital adequacy at 13.56 percent in 2009 of which 10.89 percent and 2.67 percent as Tier-1 and Tier-2 capital respectively against Bangladesh Bank’s requirement of 10 percent. The deposit base of the bank registered a growth of 27.66 percent in the reporting year over the last year and stood at Tk.76,838.64 million. Expansion of branch network, competitive interest rate and deposit products contributed to the growth. The customers of the bank were individuals, corporations, financial institutions, government and autonomous bodies etc.

Has a consistent dividend policy. In line with that Stock Dividend of 52 percent was declared for the year 2008 which strengthened paid-up capital base and it stood at Tk. 2,846.54 million 2009 against authorized capital of 7,450.00 million. The statutory reserve enhanced by 35.95 percent to Tk.6070.22 million in 2009 after transferring 20 percent on pre-tax profit while it was Tk.3, 397.70 million in 2008. At the end of 2009 shareholders’ equity increased by 45.55 percent to Tk.8,916.76 million from Tk.6,126.27 million of 2008. The Bank opened a total number of 24,385 LCs amounting USD 1,117.61 million in import trade in 2009.

The main commodities were scrap vessels,rice, wheat, edible oil, capital machinery, petroleum products, fabrics & accessories and other consumer items. The Bank has been nursing the export finance with special emphasis since its inception. In 2009 it handled 18,761 export 2009 it handled 18,761 export documents valuing USD 559.78 million with a growth of 5.41 percent over the last year. Export finances were made mainly to readymade garments, knitwear, frozen food and fish, tanned leather, handicraft, tea etc. The daily average investment of the treasury in local currency was Tk 10,629.10 million in the from of Call Lending, Term Lending, Reverse Repo, Debentures and Govt.

The yield was 1.17 percent higher than previous year. Like previous year, inflow of foreign currency of the current year was higher than the previous year.

Treasury was actively participated in interbank market, both in local and foreign currencNational Bank Limited generated profit before provision of Tk.3,397.70 million in 2009 which was Tk.3,123.82 million in 2008 registering a growth of 8.77 percent. Net Profit after tax grew by 36.45 percent to Tk.2,070.47 million in 2009 after making provision for loan loss and income tax for Tk.200.00 million and Tk.1,150.00 million respectively.

Interest income increased by 17.88 percent to Tk.6,821.39 million in 2009 from Tk.5,786.71 million in 2008 due to growth of advances. It accounted 61.98 percent of the total operating income.The income from investment increased sharply by 89.51 per cent to Tk.1,779.32 million in 2009 from Tk.938.92 million in 2008. Commission and exchange earning decreased by 3.20 percent to Tk.1,463.70 million in 2009 from Tk.1,512.13 million of 2008. Overall increase of deposits pushed up the interest expenses by 24.91 percent from Tk.3,594.84 million in 2008 to Tk.4,490.34 million in 2009. Salary & allowances increased by 26.89 percent, Rent & taxes, insurance premium, utility charges etc increased by 23.36 percent. Total operating expenses was Tk.3,118.11 million in 2009 in comparison to Tk. 2,174.40 million in 2008.

In spite of taking all out efforts to reduce the non-performing assets of the bank giving top most priority, the classified loans raised by 42.17 percent to Tk.3,880.31 millions as on 31 December, 2009 from Tk. 2,729.33 millions of previous year. Global recession and internal political uncertainty of 2007 & 2008 in the country many industries and business enterprises could not run properly & had to incur huge loss and turned non-performing which is a major cause of increase in classified loan.

Besides all other activities recovery of classified loans & advance gets top most priority. Though appropriate action plans taken and relentless efforts exerted to reduce the non-performing assets, during the year under review, the bank recovered Tk.345.40 million and Tk.97.37 million against classified loans & advances and written-off respectively. Even then non-performing assets increased a little bit to 5.96 percent of total loans & advances, which is within a tolerable level. Moreover, during 2009, bank obtained court verdict of 9 suits valuing the property of Tk.36.23 million under section 33(7) & 33(5) of the Artha Rin Adalat Ain-2003.

Necessary formalities are being done to sell the properties to realize the debts. Bank filed 33 new suits in the year 2009 to recover Tk.862.47 million and is relentlessly pursuing the suits for early disposal. As a contributor of national economy, NBL is relentlessly working to ease the flow of inward foreign remittance. The bank introduced different products and technology including SWIFT, (Tk. 620.69 crore ) higher than that of 2006 acheving a growth rate of 29.07 percent. Intorduction of products like Home Delivery Scheme, Electronic Fund Transfer(EFT) and different instant payment system and mordern technologies like SWIFT and online services have strengthed the position of the bank. Devices for more speedy payments.

Further, NBL entered into a deal with ASA, a leading NGO having 3,000 outlets and also with Social Islamic Bank to expand bank’s domestic network. With the passage of time, NBL earned the confidence and trust of the wage earners and successfully handling a sizeable volume of remittances, which is depicting a gradual increasing trend. Amount Excise Duty Up to 10000/- Nil 10000 – 100000 120/- 100000 – 1000000 250/- 1000000 – 10000000 500/- 10000000 – 500/- 50000000 & above 5000/- Some Special packages: NBL monthly saving scheme (NMS): It is an attractable savings project for limited income group. National bank Ltd. Got quick response in this project.

A depositor can deposit 500-10000 Taka monthly for 5-8 years. The return is as follows: Monthly Installment Return after 3 years 9.00% Return after 5 years 9.25% Return after 8 years 9.50% 500 20,627 3 7,896 70,849 1000 41,255 75,791 1,41,697 2000 82,510 1,51,583 2,83,394 3000 1,23,765 2,27,374 4,25,091 4000 1,65,020 3,03,166 5,66,788 5000 2,06,274 3,78,957 7,57,914 10000 4,12,549 7,08,485 14,16,970 NBL deposit scheme (NDS) The scheme will be titled as NDS. The period of deposits will be 3 years. Credit facilities up to 80% are allowed against lien on balance of NDS A/C, at 15% rate of interest of quarterly rest. NDS Amount (in Taka) Monthly Benefit Payable (in Taka) 50000 450 100000 900 2 3 4 5 10 200 500 Number of Register 7 Name of registers. Cash register.

Receive register. Payment register. Receive – Payment register. Vault register. Cash balance register.

Cash remittance register. Prize bond register. Insurance register The activities of Cash Department: This cash Department deals with cash, maintain the registers of Incoming and outgoing of cash flows.

Cash department has to properly maintain cash management policy. Within this policy cash department performs activities through some steps and follows some policy, especially insurance policy. Three types of Insurance Policies maintain in this department for getting insurance coverage: Cash in safe insurance: up to Tk. 50,00,000 coverage Cash on counter insurance: up to Tk.10,00,000 coverage Cash in transit insurance: up to Tk. 1,00,00,000 coverage In cash department above mentioned registers are maintained. For example, in receive register there are two heads. One is receive from branch and other banks, other are receive from customers.

Hence in payment register there are also two heads. One is payment to branch and other banks and another is payment to the customer. Generally cash balance register are two types: Cash balance book – incase of large branch this book is maintained one after one day, but in case of small branch this book is maintained on current date. Evening cash balance book – in case of emergency receive from customers, bank has to maintain this special kind of book for party services. Calculation of Closing cash balance: Opening balance.

+ Cash received. – total Payment.

Closing cash balance. SWIFT Services: NBL is one of the first few Bangladesh Banks to obtain membership of SWIFT (Society for World Inter-bank Telecommunication). SWIFT is a members’ owned cooperative which a first and accurate communication network for financial transaction such as Letter of credit, Fund Transfer etc. By being a member of SWIFT, the bank has opened up possibilities for uninterrupted connectivity with over 5700 user institutions in 150 countries all over the world. B.3.2.2 BILLS AND CLEARING DEPARTMENT The bills and clearing department performs their duties for collection purpose.

This purpose happens through two ways: Through clearing house: Clearing House is a combined place where all listed banks represent themselves and distribute all cheques drawn on the banks and collect cheques drawn on their own bank. Clearing house’s works are monitored by Bangladesh Bank. Every listed bank has account with Bangladesh Bank. Through clearing house every bank clear their liability. Mechanism of operation of the Clearing House is by now an well developed one.

Generally the mechanism is as under: Every member bank of the Clearing House prepares a bank-wise list of cheques and drafts received from its customers and drawn on different banks. Representative of each bank visits the Clearing House with the cheques and their list in the morning and delivers the cheques and drafts to the representatives of the respective banks. Similarly, he/she also receives the cheques drawn on his/her bank from the representatives of the other banks. The representatives return to their respective banks to meet again in the afternoon to return the dishonored instruments, if any, to the representatives of the respective banks. The representative of each bank computes the final balance payable or receivable by his bank or other bank from other banks after taking into account the various amounts of receipts and payment. The final settlement is effected by the supervisor of the Clearing House by debiting or crediting, as the case may be, the accounts of the respective banks as maintained with the Clearing House.

Registers: For collection purpose maintains some register such as – Local bills for collection (LBC) Outward bills for collection (OBC) Inward bills for collection (IBC) B.3.2.3 BRANCH BANKING Convenience is the key feature of the Personal Banking Program of National Bank Limited (NBL). The aim of NBL is to provide every Customer easy access to his/her Account from any Branch and ultimately from any where. Recognizing the need of the Customers, NBL has recently networked all of the Branches in National, Narayanganj, Chittagong and Sylhet to permit its valued Customers to carry out Transactions from any Branch. Cash Withdrawal or Deposit or any type of Personal Banking Transactions can be performed using the Any Branch Banking Service. All Transactions under Any Branch Banking are absolutely free of charge. The following Services are available under Any Branch Banking: Cash Withdrawal from one’s Account from any branch of the Bank. Cash and Check Deposit into one’s Account from any Branch of the Bank.

Cash and Check Deposit in other’s Account from any Branch of the Bank. Transfer of Money from one’s Account with any Branch of the Bank. B.3.2.4 NATIONAL BANK CREDIT CARD NBL provide both Credit card & Debit Card Basically this department deals with credit cards, and now days only the ‘Master Card’. But NBL recently is starting the operation of VISA Power Card as a Debit Card.

Master Card is using as an alternative of cash. In the real world cash carrying is not safe always that’s why credit card is very popular in the modern world and also in Bangladesh.

People can draw cash from the ATM with out any involvement of human, by credit card one can buy anything from the shop. – NBL has 2 types of Master cards: Silver & Gold, both has local & International range. – Interest rate is 2% for both Local and International.

Application and proposal prepare to open a card: Application receive from a party Verify the securities (FDR, Saving Certificate, CD or SD A/C) For exporter lien will be his F.C A/C and payment of card will be through USD. Send the certificate to the top management If approved by the management the card will punch and deliver after 1 day to the Clint. Charging procedure of Master Card: Gold Silver International Local International Local $50 + 15% (vat) Tk. 2000 + 15% (vat) $ 25 + 15% (vat) Tk. 1200 + 15% (vat) Debit Card (Visa Power Card): NBL Power Card Issued to a cardholder to avail of services and to purchase or to draw cash by properly presenting the same at the notified Member Establishment / Bank/ATM. Three types of Power Card is available – Local Card International Card.

Dual Card The card holder may avail any of the above Cards subject to fulfillment of necessary requirements. Salient Features of the NBL Power card: NBL Power Card can be used for purchases at merchants where VISA Cards are accepted through electronic point of sales terminals. NBL Power Card can be used for withdrawing cash from Automated Teller Machines (ATM) s. Personal Identification Number (PIN) necessary for withdrawal of cash will be provided by the bank For Local Card there is no issuance fee for the 1 st year and from the 2 nd year only Tk. 200 will be charged. For the International Card highest charge will be $ 40 & lowest will be $ 15.

To get a NBL Power Card customer has to submit only two copy of his/her recent photograph and the TIN (Tax Identification Number). B.3.2.5 SECURED OVERDRAFT Rescheduling Rules: After receiving rescheduling application bank has to query why loan account becomes defaulted. Considering rescheduling bank has to observe borrowers liability with other bank. Bank must have to observe borrower’s cash flow statement, Income statement, Balance sheet. Sometime bank can inspect borrower’s industry/firm physically to ensure borrower’s repayment capacity of rescheduling liability.

Bank must preserve this report.if bank satisfied with above conditions, and then loan can be rescheduled. Otherwise legal action must be taken, keeping sufficient provision and write off the loan. Rescheduling must be for minimum time period.

Rescheduling of Term loan: v Between maximum 15% of overdue installment or 10% of outstanding – which is lower pain in cash then 1 st rescheduling considered. Between maximum 30% of overdue installment or 20% of outstanding – which is lower pain in cash then 2 nd rescheduling considered. V Between maximum 50% of overdue installment or 30% of outstanding – which is lower pain in cash then 3rd rescheduling considered. Rescheduling of demand and continuous loan: In case of demand and continuous loan’s rescheduling rate of down payment vary in order to loan amount. Overdue loan amount Rate of down payment One crore taka 15% One – five crore taka 10% Five crore and above 5% B.3.2.6 LOANS AND ADVANCED Loans & Advance is a major earning source of a Bank. NBL is also very careful to provide loan, normally NBL sanction loan to individuals, small/medium or large industries. Actually loans give out of the Bank’s deposits, against valuable security.

NBL follows some general rules/principle to provide loan to its client. The bank shall provide suitable credit services and products for the markets in which it operates. Loans and advances shall normally the financed from customers’ deposits and not out of the share, temporary funds or borrowings from other banks. Credit will be allowed in manners which will in no way compromise the Bank’s standards of excellence and to customers who will complement such standards.

All credit extension must comply with the requirement of banking companies Act 1991 and Bangladesh Bank’s instructions as amended from time to time. The aggregate of all cash facilities shall not exceed 80% of customer deposits. It is further governed by the statutory and liquidity reserve requirement of Bangladesh Bank. Classification of Loans & Advances. Cash credit section.

Credit information bureau (CIB). Secured overdraft section (SOD). Loan general section. ADB loan. Employee house building loan (EHBL). House building loan (HBL). Bank guarantee section (local).

Recovery wing section. Law department and recovery section. IT section for advances Cash Credit (CC) Section What is CC: Actually cash credit is one kind of credit facilities to the customer. CC is a fully continuous loan. Generally this loan issued for providing working capital of a business.

Types of CC: Two types of cash credit are used: Hypothecation (Hypo) Pledge Some discussion about CC: Generally hypothecation is used in a large scale. In hypo stock acts as a primary security and keeps under borrower’s full responsibility. In case of pledge stock possession is kept under bank and bank guard it own cost. After submitting bills by party bank pay bill amount to the supplier and party collect money from supplier. Party has to maintain certain% of margin to the bank.