Credit card operations of Eastern Bank Ltd and opinion of credit cardholders about EBL’s credit card service quality

Abstract

Eastern Bank Limited(EBL) is one of the leading Private Commercial banks in Bangladesh. Eastern Bank Ltd. is a third generation bank which started its operation on 16th August 1992 as a scheduled Bank. Since then it has established its name and branding with its quality of service and products. In a very short time Eastern Bank Ltd. became one of the successful and fastest growing private banks in Bangladesh. Risk is inherent in all aspects of a commercial operation; however, for Banks and financial institutions, credit risk is an essential factor that needs to be managed. Credit risk, therefore, arises from the bank‟s dealings with or lending to corporate, individuals, and other banks or financial institutions. Credit risk management is utmost important to Banks, and as such, policies and procedures should be endorsed and strictly enforced by the top level management and the board of any Bank. According to the guideline prescribed by Bangladesh Bank, EBL restructured its credit approval and monitoring procedures in the year 2002. This improved the risk management culture and established minimum standards for segregation of duties and responsibilities resulting better control on the overall loan approval and monitoring process. The credit evaluation and the operational risk of credit card of Eastern Bank Ltd. is the main concern of this report. Besides that, some specific objectives of this report is to give a brief idea about credit card and current scenarios of credit cards in Bangladesh. Eastern Bank Limited has been successful in all of its operation since its inception. It has outperformed all its peer and competitor and peer banks in virtually all area of its activities. Credit Card Service Quality and Opinion of Credit Cardholders are very much important of EBL. So if this matter can run successfully it will contribute greatly to the development of the organization. Considering the importance of Credit Card, the authority should pay more attention. EBL need more promotional activities to educate the borrower and for branding as well. In recent years EBL is quite successful in developing themselves as a successful bank in this sector of Bangladesh.