Navigating retail banking service of City Bank PLC- critical observations & comparative analysis under CAMEL framework

Abstract

This internship report shows a detailed analysis of City Bank PLC and comparative performance analysis of four leading private commercial banks in the country in terms of their performance using CAMEL rating framework over a period of 2020-2024 namely CityBank PLC, BRAC Bank, Eastern Bank and Mutual Trust Bank. The study assesses five dimensions of financial health that are Capital Adequacy, Asset Quality, Management Efficiency, Earnings Quality, and Liquidity Management. For this research there are four private commercial banks comprising Brac bank, City bank, Eastern bank and Mutual Trust bank that have been selected because they are important in the sector and financial data is available for them. The analysis is based on benchmarking the performance of City Bank PLC in comparison with other leading private banks in Bangladesh. The internship was pursued at City Bank's Banani Lake View Branch under the Retail Banking Division wherein I gained a hands-on exposure about Customer Service, Account Opening Process, Documentation and Digital Banking solutions.This has been an experience by which the gap that existed between theoretical subject matter and real banking processes can be bridged, but more significantly it has exposed issues such as the pressure of handling the customers and being under manual operations and not being digital literate among the clients. Recommendations range from the introduction of token-based queue systems, digitization of internal processes and improvement of digital awareness campaigns and structured internship modules. The CAMEL analysis shows that Eastern Bank came out as the overall best bank because of the good asset quality and high management efficiency, followed by City Bank which had good balance sheet parameters in terms of profitability and monetization capacity but was poor in terms of bad loans. BRAC Bank showed a high level of capital adequacy but low levels of earning and efficiency, and Mutual Trust Bank had experienced high liquidity but low capitalization and poor quality of assets. Overall, the results highlight the importance of balancing growth and asset quality and efficiency. For the regulators, the study indicates enhancing the control over the non-performing loans, while the banks are advised to concentrate on the cost optimization policies, improved utilization of liquidity and increased adoption of digital banking. From the viewpoint of investment, the Eastern Bank and City Bank are more attractive investment banks, however, the BRAC Bank and MTB need to be strategically improved in order to be more competitive.