Loans Performance Evaluation of Mutual Trust Bank LTD

Loans Performance Evaluation
Loans Performance Evaluation

of
of
Mutual Trust Bank Limited
Submitted by
WWW.ASSIGMETP!IT."!M
###.Assi$nmentPoint.com
1
I
I
ntroduction
ntroduction

:
:
A bank is an establishment which makes to individuals such advantage of money as may
be required and safely made and to which individuals entrust money when not needed by
them to use.Kinlay
Banking system occuies an imortant lace in a nation economy. A banking institution is
indisensable in a modern society. Banks safeguard money and valuables and rovide
loans! credit! and ayment services! such as checking accounts! money orders! and
cashier"s checks. Banks also may offer investment and insurance roducts! which they
were once rohibited from selling. As a variety of models for cooeration and integration
among finance industries have emerged! some of the traditional distinctions between
banks! insurance comanies! and securities firms have diminished. #n site of these
changes! banks continue to maintain and erform their rimary role acceting deosits
and lending funds from these deosits.
$utual %rust Bank &imited a rivate sector commercial bank. %he bank has its head
office at 'haka and () branches. %he management of the bank is vested in 1*+member
board of directors! including reresentatives of the * sonsor firms. %he managing
director is its chief e,ecutive. %he bank conducts all tyes of commercial banking
activities including foreign e,change business and other financial services. 'uring the
first two years of oerations! the bank-s main focus was on the delivery of ersonali.ed
customer services and e,ansion of its clientele base.
$utual %rust Bank started its oeration on /ctober (0! 1111 as a rivate sector bank with
an authori.ed caital of %k. 12222 million and aid u caital of %k.(22 million. %he
aid u caital of the bank amounted to %k. 1)2.02 million as on 'ecember *1! (223.
%otal caital of the bank as 'ecember *1! (223 stood at %k.(110.)( million consisting of
shareholders" equity of %k. 1120.41 million. %he 5aital Adequacy 6atio 75A68 of the
bank was 11.9*: as on 'ecember *1! (223 as against the minimum requirement of 1:
indicating a sound caital base of bank.
(
O
O

rigin of the
rigin of the

R
R

eport:
eport:
%he BBA internshi rogram is a required course for the students who are graduating
from the B6A5 Business ;chool from B6A5 <niversity. #t is a 0 credit hour course with
duration of 1( weeks in the internshi rogram= # was attached with an organi.ation
named >$utual %rust Bank ltd." in 'hanmondi Branch for 1( weeks. 'uring this eriod #
learned how an organi.ation works and hel the customers. As a result # have decided to
reare a reort on 5onsumer Banking and 5redit $anagement of $utual %rust Bank
&td.
O
O

bjective of the
bjective of the

S
S

tudy:
tudy:
%o #dentify tyes of &oan given by $utual %rust Bank.
%o asses loan disseverment of the selected bank
%o evaluate loan recovery osition of the mutual trust bank
%o identify roblems affecting loan erformances.
%o suggest to overcome the roblem.
S
S

cope of Study:
cope of Study:
%he scoe of the reort is limited at drawing descritive and analytical rather than critical
resentation of $utual %rust Bank &td.
R
R

esearch
esearch

M
M

ethodology
ethodology

:
:
;ome fundamental stes of research methodology have been adoted through my
*
seciali.ation field of study of BBA rogram and also from the fields of other areas. #n
my study # had to go for ersonal interaction with the organi.ational eole of $utual
%rust Bank &td.! 7'hanmondi Branch8 to conduct the research work.
S
S

ources
ources

of
of

I
I

nformation
nformation

:
:
Both rimary and secondary sources of information were being ursued with regards to
the resentations of this study. %he following rocedure and sources # accessed?
Primary Source:
@ersonal observation
Aorking at different desks of the bank
Bace to face conversation with other officer
Bace to face conversation with client
Secondary Source:
Annual reort of $%B& (224.
Biles and Bolders
;tatement affairs
Bank rate sheets
@rogress reort of Bank
Aebsites
'ifferent circulars sent by Cead /ffice and Bangladesh Bank
;ome books on Banking
0
L
L

imitation
imitation
:
:
&imitation is a usual art of reort analysis. Ahenever any reort is going on to analysis!
there are several lacking to find out the result of the articular toic. %o make this reort!
# am also faced lacking or limitation. %hese are given below=
%ime duration is not enough for such an e,tensive study. #t is very difficult to
collect all the required information in such short eriod.
$%B& is fully centrali.ed bank and all information is available in head office.
Branch gets information when secial request is made. Branch emloyees only
know the information that the head office informed.
'ue to some legal obligation and business secrecy banks are reluctant to rovide
data. Bor this reason! the study limits only on the available ublished data and
certain degree of formal and informal interview.
A worthwhile study requires the analysis of as much data as ossible covering
various asects of the study. But # did not have access to the various tyes of
information about &oans D advances.
%o rotect the organi.ational loss in regard of maintaining confidentiality some
arts of the reort are not in deth.
# carried out such a study for the first time. ;o! in+e,erience is one of the main
factors that constituted the limitation of the study.
T
T

he
he

E
E

mergence of
mergence of

M
M

odern
odern
B
B

anking:
anking:
)
%he word >Bank" originated from #talian word >Banca". Banca means long tool. #n ancient
time #talian Eews merchant used to do business of lending money by sitting on the tools.
#t is assumed that the word >bank" derived from the word Banca. %o meet the e,ense of
war of 114 one+tye credit certificates was launched in #taly at an interest rate of ):! it
was called as $onte in #talian language and Banke in Ferman language then Ferman
language was widely used in #taly. As a result the word Banke gradually changed to the
word Banca from which the word bank originated.
%he linguistics and etymology suggest an interesting story about banking origins. Both
the old Brench word Bangue and the #talian word Banca were used centuries ago to
mean a bench or moneychangers table. %his describes quite well what historians have
observed concerning the first bankers! who lived more than (222 years ago. %hey were
money changers! situated usually at table or in a small sho in the commercial district!
aiding travelers who came to town by e,changing foreign coins for local money or
discounting commercial notes for a fee in order to suly merchants with working
caital.
$ost of early bank was Freek in origin. %he first bankers robably used their own caital
to fund their activities! but it was not long before the idea of attracting deosit and
security temorary loan from wealthy customers became a source of bank funding. &oans
were then made to merchant"s shiers and landowners at rates of interests low as 3
ercent er annum to as high as 09 ercent a month for the riskiest ventures.
MTB
MTB

at a
at a

G
G

lance:
lance:
%he 5omany was incororated on ;etember (1! 1111 under the 5omanies Act 1110
as a ublic comany limited by shares for carrying out all kinds of banking activities with
Authori.ed 5aital of %k. 1!222!222!222 divided into 12!222!222 ordinary shares of
%k.122 each.
3
%he 5omany was also issued 5ertificate for 5ommencement of Business on the same
day and was granted license on /ctober 2)! 1111 by Bangladesh Bank under the Banking
5omanies Act 1111 and started its banking oeration on /ctober (0! 1111.
As envisaged in the $emorandum of Association and as licensed by Bangladesh Bank
under the rovisions of the Banking 5omanies Act 1111! the 5omany started its
banking oeration and entitled to carry out the following tyes of banking business?
All tyes of commercial banking activities including $oney $arket
oerations.
#nvestment in $erchant Banking activities.
#nvestment in 5omany activities.
Binanciers! @romoters! 5aitalists etc.
Binancial #ntermediary ;ervices.
Any related Binancial ;ervices.
%he 5omany 7Bank8 oerates through its Cead /ffice at 'haka and () branches. %he
5omanyGBank carries out international business through a Flobal Hetwork of Boreign
5orresondent Banks

V
V

ision
ision

:
Asire to be the most admired financial institution in the country!
recogni.ed as a dynamic! innovative and client focused comany
that offers an array of roducts and services in the search for
e,cellence and to create an imressive economic value.
4

M
M

ission:
ission:
%o be the bank of 1st choice by creating e,cetional value for their
clients! investors and emloyees alike.
9

C
C

ompany
ompany

P
P

rofle:
rofle:
ame % $utual trust Bank &imited
Address % Cead /ffice
39 'ilkusha 5GA! 'haka
@hone?+ 414 21*9+02
Ba,?+ 992+(+1)3 143(
I+mail?+ mailto?mtblbJbangla.net
;A#B%?+ $%B& B' 'C
%ele,? 3*(14* $%B C/ BE
Ty&e of !r$ani'ation% @rivate limited 5omany
(ate of "ommencement of Business
as full fled$ed "ommercial Bank? /ctober (0!1111
)ead !ffice (ivision * (e&artment?
Division
5redit 'ivision 75ororate D 5onsumer8
%reasury D international 'ivision
Binancial Administration 'ivision
Business 'eveloment 'ivision
Banking oeration 'ivision
Cuman 6esource 'ivision
Board D 5omany Affairs 'ivision
5ard 'ivision
#nternal 5ontrol D 5omliance 'ivision 7#558
Feneral ;ervice 'ivision
Department
Audit D #nsection 'eartment
5omliance 'eartment
$onitoring 'eartment
1
$erchant Banking 'eartment
6econciliation 'eartment
;hare 'eartment
@ublic 6elation 'eartment
6ecovery D $onitory 'eartment
#nventories 'eartment
#% 'eartment
Branc+es: ()
o. of Em&loyees% 042
"redit ,atin$% 5redit 6ating Agency of Bangladesh &imited 756AB8 has
adKudged AA- 7@ronounced 'ouble A %wo8 rating in the &ong %erm and
ST- rating in the ;hort %erm for $utual %rust Bank &imited 7$%B&8.
Date of Rating: (( $ay (224
Validity: 1 7/ne8 Lear
!&eratin$ Profit% 131.04 million 7(2238
Total "a&ital% (!110.)( million 7(2238
Total Asset% (3!(14.11 million 7(2238
(e&osits% ((!(30.2) million 7(2238
Loan * Advances% 19!)11.)( million 7(2238
Total "ontin$ent Liabilities % 1!314.*1 million 7(223.
"ost of /und% 12.**: 7(2238
Earnin$ &er Assets% (*!)4).9* million 7(2238
Investments% %he total investment ortfolio of the bank stood at %k. *2)).31
million in 'ecember *1! (223 as comared to %k. (!01).19 million in
'ecember *1! (22) registering a growth of ((.0(:. %he investment
ortfolio includes treasury bills! .ero couon bonds! share of different
comanies! ri.e bonds etc. %he investment is made rimary to meet ;&6
requirement.
,eturn on Investment% 3.2*: 7(2238
12
,eturn on Assets% 1.9(: 7(2238
Income from Investment% 190.02 million 7(2238
International Trade% $%B& has designed %rade Binance @roducts to coe with
the changing foreign market arena. %he bank offer a broad sectrum of
trade finance roducts namely issuance of documentary credit! advising!
confirmations! forward covers! re+shiment and ost+shiment finance!
negotiation and urchase of e,ort bills! discounting of bills! collections
etc.
Im&ort% #mort volume of $%B& in (223 reached %k. (3!()).(1 million
comared to BL2)"s volume of %k. 14!322.22 million achieving a growth
of 09.34:. %he main imort items were industrial machineries! raw
materials! fabrics and accessories! chemicals! electronic goods and other
consumer roducts! caital machinery! etroleum and etroleum roducts.
E0&ort% #n (223 the e,ort volume of $%B& reached %k. 1(!10*.(3 million
comared to revious year"s volume of %k. 9!912 reflecting a sound
growth of 03.1(:. %he items handle in e,ort trade were ready+made
garments! Kute! Kute goods! harmaceuticals! leather etc.
Treasury !&erations? Ifficiency %reasury management offers e,citing rofit
otential in volatile time when other marker are unstable and insecure.
$%B& has got a very efficient manower to run a local money market as
well as foreign currency market in roduct way. %reasury oeration of the
bank includes foreign e,change dealings! money market oerations! assets
liability management and other fi,ed income roducts. Assets &iability
5ommittee 7A&5/8 guided bank"s cash flow and treasury oerations. %he
dealing room in engaged for efficient functioning in the foreign e,change
market to hedge the foreign e,change risk and to manage the dealing room
with fairness! transarency and disciline within the tolerance. %he growth
of %reasury /eration was about **.31: in (223. #n BL23 total rofit
from treasury oeration was 14*.40 million comared to BL2)"s rofit
1(1.13 million.
11
/orei$n ,emittance% $%B has established remittance arrangements with a
number of e,change house to facilitate wage earners to remit their money
to Bangladesh. %his bank has already been in oeration with <AI
I,change 5entre &&5! Aall ;treet I,change &&5! %rust I,change! 6oute
Asia I,change! #nstant 5ash! and Bangladesh $oney %ransfer. %hey have
obtained ermission from Bangladesh Bank to start oeration with Al ;aad
I,change! Birst solution I,change! Al Ahalia I,change Bureau and
Bederal I,change. %he bank maintains corresondence with order 13
I,change Couse which are Al Badaral I,change! Hational I,change! 5ity
I,change! Buture I,change! Al Fhurair I,change! Cabib I,change! Al
Ansari I,change! Imirates #ndia #nternational I,change! #nstant
I,change! /man <AI I,change! $odern I,change! @urusuttam KanKi
I,change! $usandam I,change! &a,idas %haria I,change! /man <nited
I,change and #5#5# Bank. %he e,tensive branch network of these
I,change Couses has been largely heling Bangladeshi e,atriates
working in the <AI! <K! Matar and /man to transfer their funds seedily
and efficiently through online network. $%B"s total foreign remittance
volume was %k. (!341.)* million in (223. $utual %rust Bank is e,loring
future avenues of remittance from other countries such as ;audi Arabia!
$alaysia! <;A and #taly in the near future.
,isk Mana$ement% %he management of $utual %rust Bank acknowledges that
risk in an integral art of business and gives full cogni.ance to the
imortance of various risks involved in the banking business. %he Board
of the bank has also endorsed the views of the management and instructed
to imlement the same in line with Bangladesh Bank directives. %he bank
has also taken initiatives to structure the banking activities in line with
Bangladesh Bank"s risk management guidelines. %he risk management of
the bank covers a wide sectrum of risk issues and ) core risk areas of
1(
banking= credits risk= foreign e,change risk= internal control D comliance
risk= money laundering risk and assets liability management risk have
been imlemented and are being comlied. %he risk areas are manned and
headed by skilled and senior rofessionals.
!ff Balance S+eet Items% #n (223 the total >/ff Balance ;heet" items
amounted to %k. 1341.*1 million as comared to %k. 4091.(4 in (22). /ff
Balance ;heet items include &etter of 5redit! &etter of Fuarantee! Bills for
5ollection! Accetance Indorsement and other 5ontingent &iabilities.
"orres&ondent Bankin$ ,elation? $utual %rust Bank has a very strong
corresondent banking network around the globe. %he bank has ;A#B%
Bi+lateral Key I,change 7BKI8 arrangements with (1* renowned banks
around the world. %he bank is able to carry out their #nternational %rade
Business with most of the global trading regions. %hey have (3 Hostro
Accounts with different corresondent banks. %hey earn interest and
rebates on overseas business through these accounts. 'ue to their strong
corresondent relation with overseas banks! they could send 1( officials of
their bank to attend foreign trainings or seminars. %hey enKoy also the
credit lines of substantial amount offered by their different corresondent
banks! which hel them to honor their &5s and fulfill their ayment
commitments abroad.
"or&orate Governance? 5ororate Fovernance has been considered most
essential asect for efficient management of a comany. $utual %rust Bank
emhasis on the cororate governance in romoting a sound management. %he
obKective of the bank is to comly with all regulatory requirements! ensure
equitable treatment of all stakeholders! confirm full and fair disclosure of
financial and all other material information and show resect for norms of
business ethics and social resonsibility.
%he Board of 'irectors! I,ecutive 5ommittee! Audit 5ommittee and other
1*
committees of the management of $%B erform their resective art with
accountability and transarency. %he bank follows the guideline started below
to ensure cororate governance?
#n accordance with the guidelines of Bangladesh Bank the number of
'irectors in the Board is 1*.
%he Board of 'irector has two committees! namely I,ecutive 5ommittee
and Audit 5ommittee.
%he Board and the I,ecutive 5ommittee review the olicies and
guidelines issued by Bangladesh Bank.
%he I,ecutive 5ommittee aroves the loan roosals as er the olicies
of the Board.
At least one Board meeting is held every month.
%he Board reviews the olicies related to credit and other maKor oerations
in order to establish effective risk management.
%he Board ensures the comliance with the rules and regulation of
;ecurities and I,change 5ommission 7;I58 and other regulatory bodies.
%he Audit 5ommittee ensures the imlementation of olicies! manuals!
instructions and audit comliance of the bank. %he Audit 5ommittee
discuses bank"s audit lan and risk management rocedures with the
management and e,ternal auditors.
%he $anagement erforms activities in line with olicies and limits as
aroved by the Board.
#nformation related to the bank"s risk management! caital adequacy!
earning er share and other disclosures as er requisites is rovided in the
Annual 6eort to facilitate the valued shareholder to get an overview of
the bank.
10

M
M

anagement
anagement

ierarchy:
ierarchy:
Chairman
Managing Director
Vice Chairman
Deputy Managing Director
Senior Executive Vice President (SEVP)
Vice President (VP)
Senior Asst. Vice President (SAVP)
Asst. Vice President (AVP)
Senior Principal !!icer (SP)
Principal !!icer (P)
Senior Executive !!icer (SE)
Senior !!icer
!!icer
"unior !!icer
Executive Vice President (EVP)
Senior Vice President (SVP)
Asst. !!icer
1)
Management !tructure "#ept$%
Management !tructure "#ept$%
Chairman
Vice Chairman
Managing Director
Deputy Managing Director
Credit
(SEVP)
#nternatio
nal
Division
(EVP)
Mar$eting %
Developmen
t (EVP)
&eneral
Administra
tion
(SAVP)
#'
(SAVP)
()
(EVP)
Accounts
(SAVP8
N@
AVP*
AVP+
AVP,
--#CE)
AVP,
AVP+
AVP*
SAVP
--#CE)
SP
AVP
--#CE)
--#CE)
--#CE)
SAVP --#CE)
--#CE)
AVP
13
Management !tructure "&n
Management !tructure "&n
#hanmondi Branch%
#hanmondi Branch%
Manager
(.ranch #n/Charge)
Deputy Manager
&eneral .an$ing Credit -oreign Exchange
Cash
#n/charge
5ustomer
;ervice
Account
#n+charge
Pre/sanction
(0oaners procedure)
Post/sanction
(Documentation)
)emittance
#mport
Export
)eceiving
!!icer
Paying
!!icer
Clearing
Accounts
!!icer +
!!icer *
14

#
#

epartment in
epartment in

#
#

hanmondi
hanmondi
B
B

ranch:
ranch:

G
G eneral eneral
B
B anking: anking:
Customer Service
%his deartment mainly gives service to their customer. %he officers of this deartment
always solve the roblem of their customer. @rovide information and aware eole about
the roducts of $%B& are the main Kobs of the officers.
%he main function of customer service deartment
#nformation rovide to the customer about the roduct.
Account oening
Account closing
5heque Book issue
5heque received
@ay /rder and @ay 5li issue
5ustomers attend
5ustomers hone call attend
Five account statement to the customer
Five account information to the customer
Customer Service
!!icer + !!icer *
19
Cash
%he 5ash 'eartment manages all of incoming and outgoing cash ayments.
%he main function of cash deartment
6eceive the money.
Nerified the notes.
@ay the money.
Ahen branch need money! this deartment collect money from rincial branch.
Ahen branch has e,cess of money! send the money to the rincial branch.
Cash Limit (In Dhanmondi
Branch)
Clearing
5ollection of cheques! drafts etc. on behalf of its customers is one of the basic function of
a commercial bank. %he deartment which erforms this function is known as 5learing
'eartment. 5learing stands for mutual settlement of claims made in between member
banks at an agrees time and lace in resect of instruments drawn on each other within
Nolt &imit )2 &ac
5ounter &imit 1) &ac
%ransit &imit 4) &ac
Cash Department
)eceiving !!icer Paying !!icer
11
the same clearing house.
Types of Clearing:
Outward Clearing? /utward clearing means when a articular branch receives
instrument drawn on the other bank with in the clearing .one and
sends those instruments for collection through the clearing
arrangement is considered as outward clearing for that articular
branch.
Inward Clearing: Ahen a articular branch receives instruments which are on
themselves and sent by other member bank for collection are
treated as inward clearing of that branch.
Outward Returned: 5learing return 7outward8 includes those cheques which
were resented to us the receding clearing by other banks but we
have to return them unaid to the collecting bank owing to various
reason. 6eturn of the 1
st
clearing are e,change in the secial
clearing.
Inward Returned? 5learing 6eturns 7inward8 consists of those instruments
which were resented by us to other banks for ayment in the
receding clearing but we have been returned unaid by them due
to one reason or the other through the 5learing Couse.
Accounts
%he accounts deartment erforms daily functions of collecting and accounting for ta,es!
receit of grants and other income! rearing deosits! account analysis! ayroll! and
rocessing urchase orders! check requests! aying vendors! monitoring and reorting on
grants and budgets and various other roKects to assist tribal members! staff and directors
with accounting administration.
%he main function of Accounts is
Budget @rearation
@rocurement D @ayment
@ayroll
Binancial ;tatements
(2
Account analysis
$onthly! half yearly and yearly closing
#nterest udated
Fovt. vat and ta, send to the Cead /ffice
'aly transfer e,ecute

C
C

redit: redit:
%he credit deartment aroves the loan of 5ororate Banking division. %he aroval is
mainly based on the risk analysis of the cororate clients done by the 5ororate Banking
division. %he main function is monitoring credit facilities granted by the cororate
banking unit. #ts function is to make sure that credit has been rovided in a right manner.
%his deartment ensures that internal controls of the cororate relations are maintained.
%he main function of 5redit deartment is!
%o manage $%B& credit ortfolio.
@rocessing of credit alications and arovals
Aware eole about the credit scheme.
5redit disbursement
#nvestigating and resolving unauthori.ed deductions
%o encourage loan reayment loan.
5ollecting from billed customers.
5overing added volumes during crunch eriods
;end the statement to the Cead /ffice.
(1

F
F oreign oreign
E
E xchange: xchange:
%he foreign e,change deartment transfers wherever one currency is traded for another.
Boreign e,change held abroad by foreign nationals or foreign business houses! e,ect to
the e,tent resonding earning abroad in resect of business conducted in Bangladesh or
service rendered while in Bangladesh.
%he main function of Boreign I,change deartment is!
%o oen imort &G5 7letter of credit8 and make ayment their
against.
Nerified master &G5 and oen back to back &G5 their against.
#ssue e,orts &G5.
6eceived and ayment foreign remittance
;end all tyes of statement 7foreign e,change related8 to
Bangladesh Bank.
((

'
'

ob
ob

#
#

escription
escription

:
:
%hrough my 1( weeks internshi rogram! # was worked in $utual %rust Bank &td. in
'hanmondi Branch. # worked there in two deartment! these are Feneral Banking and
5redit. $y Kob descrition is given bellow=+

G
G eneral eneral
B
B anking:- anking:-
Customer Service
Front desk job description
'ata entry
Account oening 7;aving Account! 5urrent Account! B'6 etc.8
Account closing 7;aving Account! 5urrent Account! B'6 etc.8
5heque Book serious osting
5heque Book issue
5heque received
%ransfer 7money transfer from one account to another8
@ay /rder issue
@ay 5li issue
@ay /rder osting
@ay 5li osting
@hone call attend
Five account statement to the customer
5ut the statement and cheque book issue charge
Five account information to the customer
(*
Clearing & Accounts
Clearing section job description
#nward 5learing
/utward 5learing 7send the received cheque to the rincial branch8
/utward return
#nward return
'ata entry
Five account information to the customer 7cheque deosited or return8
5all those customers whose cheque is returned.
%ransfer 7cut the charge for some urose8
@ay /rder AdKust
@ay 5li AdKust
/B5 7/utward Bill for 5ollection8
ccount section job description
5heck the daily transfer.
%ransfer 7B'6 interest rate transfer to the saving account8
'ata Intry

C
C redit:- redit:-
'ata entry
Account oening 7&oan account8
(0
%ye roosal
()

C
C

onsumer
onsumer

B
B

anking:
anking:
%heir aim to satisfy all clients! regardless of how big or small they may be. #ndividuals
are counseled on the best tye of accounts suitable to them such as 5urrent! ;avings!
;hort %erm 'eosits! Bi,ed 'eosits! 5onsumer Asset and &iability @roducts! etc.
Aart from the conventional banking oerations $%B strives to introduce an array of
roducts and services and already launched a number of consumer banking roducts with
the aim of oulari.ing consumer banking oerations and offer higher return to its
clients.
Consumer !anking Products are:
;aving 'eosit
5urrent 'eosit
Bi,ed 'eosit
;hort %erm 'eosit
Brick by Brick ;avings ;cheme
$onthly Benefit @lan
5hildren Iducation @lan
5onsumer 5redit ;cheme
Best#nvest @lan
$%B& $illionaire @lan
Bestival ;aving @lan
$%B& 'ouble ;arver @lan
$%B& %rile ;arver @lan
<nique ;aving @lan
(3
Saving Deposit:
;avings accounts are accounts maintained by commercial banks!
savings and loan associations! credit unions! and mutual savings banks
that ay interest but can not be used directly as money 7by! for
e,amle! writing a cheque8. %hese accounts let customers set aside a
ortion of their liquid assets that could be used to make urchases while earning a
monetary return.
Account is eligible for individual"s savings! transaction! investment! loans reayment and
ayroll urose. 6equirement for ersonal account? savings and access 7single8 and
graduate account.
AOF: %he account oening form 7A/B8 comleted roerly.
Introduction: 'uly introduced by an e,isting accounting holder having
satisfactorily relationshi with ;tandard 5hartered Bank for at least si, months
@hotograh? %wo coy of account holder hotograh duly signed by introducer.
ominee: ;ignature of nominee on the A/B along with the relevant ortion and
also with a hoto duly attested by alicant.
Document: Nalid assortG driving licenseG! voter #' card!G reference letter by the
first class ga.ette officer and one coy hoto of the account holder signed by
officer7affidavit is not accetable8! organi.ational hoto #'.7commissioner
certificate! certificate from Fa.ette officer is not accetable 8
Any kind of over writing must be signed by alicant in A/B. Hame! father-s name!
mother-s name! date of birth! address! have to match with sulied documents.
%ransaction rofile and imortant document are the essential arts of all account oening.
(4
Sole proprietor" trust" partners#ip" $%Os:
,e1uirement%
5omleted A/B with sole rorietorshi declaration
%rade &icense.
%in certificate
@assort of rorietorG main signatory
%wo coy of hotograh
5omany ;eal
#n case of @artnershi all the above mentioned entry in addition with+
'eed in case of artnershi
@assort of all artners
KL5 7Know your customer from which fill u by the officer8
required for all artner
Current Deposit:
5urrent account is an efficient and convenient way of handling their daily finances. A
frequent transaction of the account that rovides customer convenience and fle,ibility.
@ut an end to eole"s worries about carrying large sums of money when they need it. #n
the current account! the account holder does not get any interest on deosit
money. %he account holder can withdraw and deosit his money any
branch of $%B&. %he minimum deosit is %k. 1222 to oen a current
account.
6equirement for current account and access 7single8 and graduate account.
AOF: %he account oening form 7A/B8 comleted roerly.
Introduction: 'uly introduced by an e,isting accounting holder having
satisfactorily relationshi with ;tandard 5hartered Bank for at least si, months
(9
@hotograh? %wo coy of account holder hotograh duly signed by introducer.
ominee: ;ignature of nominee on the A/B along with the relevant ortion and
also with a hoto duly attested by alicant.
Document: Nalid assortG driving licenseG! voter #' card!G reference letter by the
first class ga.ette officer and one coy hoto of the account holder signed by
officer7affidavit is not accetable8! organi.ational hoto #'.7commissioner
certificate! certificate from Fa.ette officer is not accetable 8
Any kind of over writing must be signed by alicant in A/B. Hame! father-s name!
mother-s name! date of birth! address! have to match with sulied documents.
%ransaction rofile and imortant document are the essential arts of all account oening.
Sole proprietor" trust" partners#ip" $%Os:
,e1uirement%
%rade &icense.
%in certificate
%wo coy of hotograh
5omany ;eal
KYC (Know your customer from which fll up by the
oficer) required for all partner
(1
Fixed Deposit:
Bi,ed deosit is the same as a term or time deosit. $oney may be laced with a bank!
merchant bank! building society or credit union for a fi,ed term at a fi,ed rate of interest
which remains unchanged during the eriod of the deosit. 'eositors may have to
accet an interest enalty if they break the deosit! ie! ask to take the money out before
the agreed eriod has e,ired.
$%B& fi,ed deosit interest rate is made through the rules of Bangladeshi Fovernment.
%he minimum oening balance of B'6 is %k. 12!222. 5ustomers have the freedom to
choose the desire
eriod from *
months to 1 year.
#f any one wants!
they can auto renew their fi,ed deosit. %he interest rates are given below=+
#f the customers need money before the end of their fi,ed deosit eriod! they can
withdraw their money. Bor this urose! the customer needs to give an alication to the
branch manager of $%B&. %he customer does not get the interest of the fi,ed deosit=
but they get the interest rate of saving deosit. ;ome charge will cut from the customer as
an e,cise duty and but no service charge will taken. %he charges are given below=+
/i0ed (e&osit E0cise (uty
/i0ed (e&osit Interest ,ate
1 month and above but less than * month 9.)2:
* month and above but less than 3 month 11.22:
3 month and above but less than 1( month 11.():
1( month and above 11.4):
*2
12!222 to 122!222 %k. 1(2
122!221 to 12!22!222 %k ()2
12!22!221 to 1 crore %k ))2
1 core to ) crore %k ()22
) crore to above %k )222
Short Term Deposit:
;hort %erm 'eosit 7;%'8 account convenient customer to way of saving for the future.
;%' account is any+branch banking solution that gives the customer more service! such
as! interest rate on the deosit 73:8! affordable minimum balance 7%k. 12228! any branch
banking.
Re&uirement ' Sole proprietor" trust" partners#ip" $%Os (
%rade &icense.
%in certificate
%wo coy of hotograh
5omany ;eal
KL5 7Know your customer from which fill u by the officer8
required for all artner
*1
)oan dvantage
%he customer can avail loan u to 12: of the deosited amount against lien of this lan
will be %k. ()!222.
*ont#ly Installment and Saving
Mont+ly Installment 2 3ears 4 3ears 56 3ears
%k. )22 %k. *9!922 %k. 4*!222 %k. 1!2(!222
%k. 1222 %k. 44!322 %k. 1!03!222 %k. (!20!222
%k. (222 %k. 1!))!(22 %k. (!1(!222 %k. 0!29!222
%k. )222 %k. *!99!222 %k. 4!*2!222 %k. 12!(2!222
Monthly Benefit Plan:
%his lan offers you to generate monthly income out of your deosit. #t
has been designed to hel and assist conscious savers from all strata of
the society.
+erms and Condition
Any individual! HF/! Iducation #nstitution! %rust! ;ociety etc. may invest their
saving in this lan. %he customer may oen more than one account in the same
branch.
$inimum deosit is %k. )2!222 or in multiles thereof. %here is no uer limit.
%his is a * and ) year lan.
$onthly installment income will be credited to the deositor"s saving or current
account.
Bor remature encashment! interest will be aid as er revailing saving rate but
no interest will be aid if encashed with in one year.
#n case of death! deosit will be encashed will alicable interest and aid to
nominee7s8.
)oan dvantage
*(
%he customer can avail loan u to 12: of the deosited amount but minimum loan
amount against this lan will be %k. ()!222.
Deposit , *ont#ly Income
(e&osit Amount Income Amount
7/or 89year Plan.
Income Amount
7/or 29year Plan.
%k. )2!222 %k. 022 %k. 0()
%k. 1!22!222 %k. 922 %k. 9)2
%k. )!22!222 %k. 0!222 %k. 0!()2
Children Education Plan:
Iducation is the backbone of any nation and one of the rimary factors of
roserity. An educated nation stands tall in the committee of nations and
deserves resect. A child-s education is of rime imortance and every
arent should ensure and make every effort to get their child educated.
%his lan will generate savings for the children education. #t has been
designed to hel and assist the eole who are concerned about the cost of
their children"s education.
+erms and Condition
#nitial deosit of $%B& Iducation @lan is %k. )222 and subsequently monthly
installments are %k.1222 and multile thereof u to a ma,imum %k. (222.
5onsumer can select a eriod of 0G4G1 years! deending on his or her convenience.
5ustomer is eligible to oen more than one account in the same branch.
$onthly installment of any lan will be debited from customer"s saving or current
account as auto transfer arrangement.
#f the customer fail to ay * consecutive installments then the lan will cease to
function and ayment will be made as er as following clause.
**
nominee7s8.
Deposit , Income
Mont+ly Installment : 3ears ; 3ears < 3ears
%K.1222 %K. )1!(22 %K. 1!((!222 %K. 1!4)!)22
%K. (222 %K. 1!19!)22 %K. (!00!222 %K. *!)1!222
%K. *222 %K. 1!14!322 %K. *!33!222 %K. )!(3!)22
%K. 0222 %K. (!*3!922 %K. 0!99!222 %K. 4!2(!222

Consumer Credit Scheme:
#n order to make a significant contribution in the living standards
of the eole of medium and low income category! $utual %rust
Bank has introduced a scheme called O5onsumer 5redit ;chemeO.
Aith a view to materiali.e the dreams of those who are unable to
make one time investment from their own savings! one can now
afford to buy necessary household equiments and thus imrove
the standard of living.
All sorts of household durables e.g. %elevision! 6efrigerators! 5omuters! Air
5onditioners! Nideo 5ameras! AashingG 'rying $achines and Burniture"s are allowed
under this scheme. /ne can buy $otorcycle too under this rogramme.
/ne can reay the loan in equal monthly installment 7I$#8 with the fle,ibility of
choosing the loan tenure from 1(+09 month installments. Ho collateral security is
requiring. /nly hyothecation and some other stander documents are needed. $%B&
offer the most cometitive interest charges will be 10: er month annum. 6ates may
vary deending on security available.
Loan Amount
$inimum %k. *2!222
$a,imum %k. *22!222 or 3 time of monthly income
*0
whichever is lower
< to 12: of the rice of urchase item
Bestnvest Plan:
Best#nvest offers efficient high return investment lan. %his
lan hels one to build u a si.eable income in easy and
affordable installments. %his lan allows someone to own )
times the initial invested amount. Best#nvest offers two
searate and convenient term deosit eriods for 0 years and 3
years resectively.
Best#nvest is available in units worth %k.)2!222 each. /ne will invest %k.12!222 as down
ayment for urchasing 1 7one8 unit and the Bank will rovide loan for %k.02!222. %he
customer also has the otion to buy units in multiles of %k. )2!222 but ma,imum u to
%k. 1!22!22!222 7one crore8. %his is a unique high return lan catering to all income
grous.
Deposit , Income'In !D+(
Best Invest
Plan
: 3ears Plan = years Plan
26>666 566>666 266>666 56>66>666 26>666 566>666 266>666 56>66>666
Do!n
"ayment #$%
12!222 (2!222 122!222 (22!222 12!222 (2!222 122!222 (22!222
Ban& Loan
'$%
(onthly
Installment
02!222
1!2)0
92!222
(!129
022!222
12!)02
922!222
(1!292
02!222
49*
92!222
1!)33
022!222
4!9*2
922!222
1)!332
(aturity Value 41!99* 10*!433 419!9*2 10!*4!332 93!191 14(!*49 931!919 14!(*!492
MTB! Millionaire Plan:
$illionaire lan is a monthly saving lan! which will make eole a
millionaire in a few years.
*)
+erms and Condition
Any individual! HF/! Iducation #nstitution! %rust! ;ociety etc. may invest their
saving in this lan. %he customer may oen more than one account in the same
branch.
5onsumer can select a eriod of 3G9G12G1( years.
$onthly installment income will be debited from the customer saving or current
account.
nominee7s8.
)oan dvantage
%he customer can avail loan u to 12: of the deosited amount but the facility will be
allowed after one year of oening the AG5.
*ont#ly Installment and Savings
Mont+ly Installment 3ear Maturity ?alue
%k. 12!1() 3 %k. 12!22!222
%k. 3!922 9 %k. 12!22!222
%k. 0!9)2 12 %k. 12!22!222
%k. *!322 1( %k. 12!22!222
MTB! Dou"le Saver Plan #
MTB! Triple Saver Plan:
$%B& 'ouble ;aver @lan is a one time saving scheme! which will rovide double the
amount of the deosit after si, years. $%B& %rile ;ever @lan is a
saving lan scheme! which will rovide the three times of the deosit
*3
after eleven years. #n both case! the customer will receive a big amount at maturity.
+erms and Condition
Any individual! HF/! Iducation #nstitution! %rust! ;ociety etc.
may invest their saving in this lan. %he customer may oen
more than one account in the same branch.
$inimum deosit would be %k 12!222 7$%B& 'ouble D %rile
;aver @lan8 and there is no limit for ma,imum amount.
%he eriod of deosit is si, years for $%B& 'ouble server lan and eleven years
for $%B& %rile server lan.
After maturity customer can get double and trile times of the deosited amount
along with a gift item.
nominee7s8.
)oan dvantage
%he customer can avail loan u to 12: of the deosited amount but minimum loan
amount against these lans will be %k. ()!222.
Indicative Figures:
MTBL (ouble Saver Plan MTBL Tri&le Sarver Plan
(e&osit Amount Maturity ?alue (e&osit Amount Maturity ?alue
%k.12!222 %k. (2!222 %k. 12!222 %k. *2!222
%k. (2!222 %k. 02!222 %k. )2!222 %k. 1!)2!222
%k. )2!222 %k. 1!22!222 %k. 1!22!222 %k. *!22!222
%k. 1!22!222 %k. (!22!222 %k. )!22!222 %k. 1)!22!222
*4
Festival Savings Plan:
$%B& Bestival ;aving lan has been designed to generate saving for religious festival. #t
will hel to reare and enKoy a hay festival. %his lan includes!+
Iid+ul+Bitr
Iid+ul+A.ha
'urga @uKa
5hristmas 'ay
Buddha urnima
$ni%ue saving Plan:
<nique ;avings @lan is an any day! any amount savings lan.
%he beauty of this lan is that a customer can deosit any day!
any time and any amount. <nique ;avings @lan offers you to
deosit any amount of your choice but not less than %k. )22G+
for *G0G) years. %his is a high income lan with withdrawal
facilities. %he withdrawal facility will hel you at the time of
any emergency. 5ustomer can withdraw )2: of the deosited balance for once a month.
At maturity you will get a handsome amount.
(
(

oreign
oreign

T
T

rade:
rade:
$%B rovides a wide range of banking services to all tyes of commercial concerns such
as #mort D I,ort Binance and ;ervices! #nvestment Advice! Boreign 6emittance and
other seciali.ed services as required. Although they are a rivate commercial Bank! they
have a strong global network that hels them to undertake international trade smoothly
and efficiently.
*9
I,ort Business 6emittance #mort Business
Import !usiness
$utual %rust Bank suorts its customers by roviding facilities throughout the imort
rocess to ensure smooth running of their business. %he facilities are?
#mort &etter of 5redit
@ost #mort Binancing 7&#$!&%6 etc8
#mort collection services D ;hiing Fuarantees
-.port !usiness
$utual %rust Bank offers e,tra cover to its customers for the entire e,ort rocess to
seed u receit of roceeds. %he facilities are?
I,ort &etters of 5redit advising
@re+shiment I,ort Binancing
I,ort documents negotiation
&etters of 5redit confirmation
Remittance
$utual %rust Bank rovides to its customers the following services?
#nwardG /utward 6emittance ;ervices
%%G '' #ssue
''G 5heque collection
Indorsements
%ravelers 5heque #ssuance
Boreign %rade
*1
)
)

n*line
n*line

B
B

anking:
anking:
$utual %rust Bank is laying a ioneering role among its cometitors
in roviding real time online banking facilities to its customers.
$utual %rust Bank online banking offers a customer to deosit or
withdraw any sum of money from any branch anywhere. Any account
holder having a checking account with the bank can avail this service.
+#e So/tware
Based on two+tier client+server architecture! the banking software works basically on
central server aroach roviding the fastest ossible access time to any client database
from any branch as well as udating the transaction. %he branch level server keeing the
u to date transaction history of the client ensures the offline transaction ability in case of
any failure in the remote communication. <sing $icrosoft-s enterrise version of ;M&
;erver (222 as data reservoir! the software ensures the highest level of security at
alication! network! database and oerating systems level ascertaining the
confidentiality and security of customer-s ersonal and account-s information.
0ardware
#n order to ensure the safety and accessibility of mission critical data! the 5entral 'ata
5enter of $utual %rust Bank is equied with the state of the art ;ervers. %he recently
rocured 'ell 3322 ;erver! owered by 0 Peon rocessors 76A#') volume fault
tolerance imlemented8 has been emloyed as the rimary data reservoir of the bank. As
a disaster recovery rearation! they have deloyed 'ell 0*22 series ;erver as Backu
server! owered by ( Peon rocessors! which ensures quick fail over of the rimary
server and smooth oeration of online transactions.
02
!
!

+ift
+ift

!
!

ervice:
ervice:
%he ;ociety for Aorldwide #nterbank Binancial %elecommunication or ;.A.#.B.%. is a
worldwide community. 4!922 financial institutions in (22 countries connected to one
another through ;A#B%.
#n their own word ;A#B% Oconsistently delivers quantifiable business
value and roven technical e,cellence to its members through its
comrehensive messaging standards! the security! reliability and >five
nines" availability of its messaging latform and its role in advancing
;%@.
%he guiding rinciles of ;A#B% are clear? to offer the financial services industry a
common latform of advanced technology and access to shared solutions through which
each member can build its cometitive edge.
$utual %rust Bank has already become the member of ;A#B% community and has started
its oeration from $arch (220. Aith introduction of ;A#B%! $%B ensures its customers
the quickest and most secured financial transaction around the world.
%he ;A#B% address or B#5 of $utual %rust Bank is? MTBL B( ()
01
!
!

ome
ome

,
,

dditional
dditional

!
!

ervice:
ervice:
+*1Debit Card Service
A debit card is a lastic card which rovides an alternative ayment method to cash when
making urchases. #ts functionality is more similar to writing a check as the funds are
withdrawn directly from either the cardholder-s bank account 7often referred to as a chec&
card8.
$%B& debit card is start from the *
rd
August. %he $%B&
customer can use the booth of 'uch Bangla bank ltd. Ivery
'ebit card has an e,iry date. #t as well requires
relacements. %he request for debit card 7with rior
notification8 is dealt by the account service deartment. 5ustomer collects the card after )
working days. 5ustomer can easily withdraw cash and make urchases whenever heGshe
wants using this 'ebit card.

Statement and certi/icate preparation
;tatement is send to the corresondence address of the account holder in two times a year
7Eune D 'ecember8. ;ome time customer need bank statement on urgent basic for some
urose. %hen the account holder come to any branch of $%B& and can take the
statement. %he statement is given when he or she can rove that he or is the account
holder or the authori.ed erson of the account holder. Ce or she can get this statement is
office working hour. #t is charged from customer"s account.
0(
ccount Service
Address c+an$e
5ustomers sometime want to change mailing and ermanent address. %hey have to fill u
a form and give suorting documents for address alteration 7in case of ermanent
address change8. ;uorting documents should be hoto id 7assortGdriving licenseG
voter id8 and one coy of hotograh of the account holder is required to change any
kinds of account service form. %his is free of cost.
Si$natory c+an$e 7(ele$ation of aut+ority.
;ometime customer wants to add new erson or nominee as Koint signatory. 5ustomers
have to fill u a form and a signatory card where new alicant"s signature 7duly attested
by him or her8! a coy of assort or voter #' or driving license is required.
Si$nature c+an$e
#f a customer wants to change his signature he has to rovide his revious valid
documents 7which were sulied at the time of account oening8 and a coy of
hotograh with a comlete form.
Account closin$
5ustomers have to surrender his cheque+book at the time of closing or surrendering the
account. 5losing charge is %k. 122 for saving account! %k. )22 for current and ;%'
account and %k. 1222 for the another scheme.
Account Transfer
5ustomer can transfer their account from one branch to another branch of $%B&. Bor
this urose he or she has to submit an alication. %he new branch oens a new account
with a new account number. %his transfer takes ma,imum * days. %he transfer charge is
%K. (22.
0*
)ocker Service
Bank rovides safety locker service to its customers. Any account holder can obtain it.
Account holder needs to fill u a form with secimen signatory card. ;ignatory may not
be more than three. #n the form! locker holder must mention the account number from
where locker charge will be debited. After clarifications all documents allocation of a
locker and key takes lace.
+ype nnual c#arge
;mall 1)22
$edium (222
&arge *222
&ocker holder can visit the locker any time within 1 a.m to ) . m+ from ;unday to
%hursday. 5ustomers had to sign the visiting record and locker"s custodian verifies it. #f
any one wants to surrender the locker! he or she needs to surrender the locker key and
visit the locker finally with custodian. %he manager kees the key in the volt and
reallocates it. #f any one lost the key of the locker! he or she has to ay one thousand take
as unishment or for the new key.
00
C
C

redit Management "
redit Management "

-
-

oans .
oans .
,
,

dvances%:
dvances%:
%he credit deartment aroves the loans and advances of 5ororate Banking division.
%he aroval is mainly based on the risk analysis of the cororate clients done by the
5ororate Banking division. %he main function is monitoring credit facilities granted by
the cororate banking unit. #ts function is to make sure that credit has been rovided in a
right manner and also ensures that internal controls of the cororate relations are
maintained.
Advances by commercial banks are made in different such as loan! cash credit!
overdrafts! bills urchased! bills discounted etc. %hese are generally short+term. Advance
may be granted against tangible security or in secial deserving cases on an unsecured or
clean basis.
#n a loan account! the entire amount! the entire amount is aid to the debtor at one time!
either in cash or by transfer to the current account. Ho subsequent debit is ordinarily
allowed e,ect by way of interest! incidental charges! insurance remium! e,enses
incurred for the rotection of the security etc. ;ometimes! reayment is roviding for by
installment without allowing the demand character of the loan to be affected in any way.
#nterest is charge on the debit balance! usually with quarterly rests unless there is an
arrangement to the contrary. Ho cheque book is issued. %he security may be ersonal or
in the form of shares! debentures! Fovernment aers! immovable roerty! fi,ed deosit
receits! life insurance olicies! goods etc.
0)
%he credit deartment of $%B& is divided into two arts? ;$I D 5redit.
Small & Medium Enterprise (SME):
;$I finance in keeing strengthens with the revailing economic olicy of the country.
%he bank is financing in different sectors of ;$I sector of the country to a great e,tent.
;$I division in $%B& is conducted by two heads or sectors i.e. ;mall Interrise
Binancing and 5onsumer Binancing rogram in accordance with the rudential
regulations or the guidelines of Bangladesh Bank.
)mall *nter+rise means an entity! ideally not a ublic limited comany! does not emloy
more than 32 ersons 7if it is manufacturing concern8 and (2 ersons 7if it is a trading
concern8 and *2 ersons 7if it is a service concern8 and also fulfills the following criteria?
)er,ice concern: %otal assets %k. )2!222 to *2 &ac 7e,cluding land D building cost8
-rading concern: %otal assets %k. )2!222 to )2 &ac 7e,cluding land D building cost8
(anufacturing concern: %otal assets %k. )2!222 to 1 5rore 7e,cluding land D
building cost8
&oans D Advances
5redit ;$I
03
Consumer financing means any financing allowed to individuals for meeting their
ersonal! family or household needs.
%he bank has devised the following forms or documents to e,ecute the roduct rogram?
o 5redit Alication Borm
o 5harge 'ocument
o Inclosure 5hecklist
o 'ocument 5hecklist
o ;anction Advice Bormat
;$I
Come &oan ;cheme
5onsumer &oan ;cheme
5onsumer Binancing
;mall business &oan ;cheme
;mall Interrise Binancing
Come 6eairG 6enovation
&oan ;cheme
Auto &oan ;cheme
04
5= branc+es +ave been desi$ned as SME Service "enter%
SL ame of Branc+ SL ame of Branc+
21 $ograara Branch 21 @abna Branch
2( <ttara $odel %own Branch 12 ;avar Branch
2* @rogati ;arani Branch 11 Bulbaria Branch
20 @allabi Branch 1( Aman Ba.ar Branch
2) Bashundhara 5ity Branch 1* 5hokoria Branch
23 'hanmondi Branch 10 $oulovi Ba.ar Branch
24 ;ylhet Branch 1) Ha.irhat Branch
29 5handra Branch 13 ;reenagar Branch
Allocation of Bud$et
Ty&e of /acility Allocated Bud$et
i. ;mall Interrise Binancing %k. 1)2 5rore
ii. 5onsumer Binancing %k. )2 5rore
Features of Products
Features of Products

: :
Small Business Loan Scheme
Alication Bees %k. )22
5redit 5eiling %k. ) &ac without collateral
Above %k. ) &ac with collateral
#nterest 6ate J 13.22: .a. at quarterly rest
6isk Bound J 1.22: or minimum %k. )22 shall be reali.ed once at time
of disbursement of loan
@ayment @eriod Iqual monthly installments including interest within *+)
years
Consumer Loan Scheme
Alication Bees %k. 122
5redit 5eiling $a,imum %k. * &ac
09
#nterest 6ate J 19.22: .a.
;ervice 5harge J 1.2: .a.
6isk Bound J (.2: .a.
@ayment @eriod Iqual monthly installments including interest within the eriod
ranging u to ma,imum * years.
Home Loan Scheme
5redit 5eiling $inimum %k. ) &ac
$a,imum %k. )2 &ac
#nterest 6ate J 1).22: .a. 7to be charged annually8
'ocumentation 5harge J1.22: .a of loan amount to be reali.ed on accetance of
loan
'ebt+Iquity Bor urchasing flatsGhouse?
i8 Bor laon uto %k. (2 &ac Q 4)?()
ii8 Bor loan above %k. (2 &ac Q 42?*2
Bor construction on own land?
i8 $inimum 12: cash involvement
@ayment @eriod ) years to 1) years
Home Repair or Renovation Loan Scheme
5redit 5eiling $a,imum %k. ) &ac
#nterest 6ate J13.22: .a.! at quarterly rest
@rocessing Bee J1.22: .a. of loan amount sanctioned
6isk Bund J1.22: or minimum %k.)22 shall be reali.ed once at time of
disbursement of loan.
@ayment @eriod $a,imum ) years with * months grace eriod.
01
Auto Loan Scheme
5redit 5eiling $inimum %k. ) &ac
$a,imum %k. (2 &ac
#nterest 6ate J13.22: .a.! at quarterly rest
;ervice 5harge J1.22: .a.
'ebt+Iquity 42?*2
@ayment @eriod $a,imum ) years
"a+er or Document Re.uired? @roduct wise checklist enclosed
Loan A++lication Form? Inclosed
)2
C
C

redit :
redit :
A loan which is fully amorti.ed 7or fully amorti.ing8 is one which the required ayments
will ay it off in full by the end of the term. At times customer-s money is tied+u in
investments but they need cash 6ather than ulling out their investment! they can take a
loan and meet their immediate need.
Continuous Loan:
Cash Credit (Hypothecation)
5ash 5redit is a short+term cash loan to a comany. A bank rovides this tye of funding!
but only after the required security is given to secure the loan. /nce a security for
reayment has been given! the business that receives the loan can continuously draw from
the bank u to a certain secified amount.
A cash credit is essential a drawing account against credit granted by the bank and is
oerated in the same way as a current account! in which an overdraft limit has been
sanctioned. %he rincial advantages of a cash credit account to a borrower are that!
unlike the arty borrowing on a fi,ed loan basis! he may oerate the account within the
%erm &oan I,ort Binance
Back to Back 7&oan
against &G58
Cash Credit
((ypothecation)
;ecured /ver 'raft
&ease Binancing
%erm &oan
5ontinuous &oan
"redit
Payment Against
Document (PDA)
)1
stiulated limit as and when required and can save interest by reducing the debit balance
whenever he is in a osition to do so. 5ash credit is against ersonal necessity and by
hyothecation of goods and bills receivables.
Secured Over Drat
/verdrafts are revolving lines of credit. An overdraft is a fluctuating account wherein the
balance sometimes may be in credit and at other times in debit. /verdraft facilities are
allowed in current account only. %he security may be in the form of shares! fi,ed deosit
receits! Fovernment aers etc. A cheque book is issued in an overdraft account.
Term Loan:
!ease "inancing:
A lease financing or caital lease is a tye of lease + the other being an oerating lease.
&ease financing effectively allows a firm to finance the urchase of an asset! even if! the
firm never acquires the asset. %yically! a lease financing will give the lessee control over
an asset for a large roortion of the asset-s useful life! roviding them the benefits 7and
risks8 of ownershi.
#erm !oan:
A loan with a maturity of usually three to five years! during which time interest is aid!
but no ayments to reduce rincial are made. %he entire rincial is due and ayable at
the end of the loan term. 5ustomers will reay the loan by $onthly! Muarterly and Calf
yearly #nstallments.
)(
Export Finance:
I,ort Binance interchangeably to mean the financing that an e,orting business requires
to hel them run their business. %he term OI,ort BinancingO is used to mean Oforeign
buyer financingO! or simly Buyer Binancing! or even Buyer 5redit. /ther synonyms
often used are vendor financing or sulier financing.
$ac% #o $ac%
Back to Back imort &G5s against e,ort &G5s received by e,ort oriented industrial
units which oening a advise of the beneficiary under the bonded warehouse system.
&ayment Against Document (&AD)
#n a @ayment against document collection! the documents are released to the
buyerGimorter uon ayment. %hus! the buyerGimorter has to ay outright from his own
financial resources. Alternatively! the imorter may arrange for trade financing from his
own banker 7in the form of trust receit! overdraft! loan! etc8. Briefly! the rocedural flow
is as follows?
)*
,ate of Interest on Lendin$%
SL "ate$ories E0istin$ 7Mid. ,ates
21 Agriculture 9.22:
2( %erms &oan to &arge D $edium ;cale #ndustries 1).22:
2* Aorking 5aital 1).22:
20 I,ort Binance 7@5! I558 4.22: 7Bi,ed8
2) 5ommercial &ending including #mort Binance 1).)2:
23 Cousing loan? i8 5ommercial
ii8 6esidential
13.22:
1).22:
24 %erm &oan to ;mall D 5ottage #ndustries 10.22:
29 5onsumer 5redit 13.22:
21 &ease Binance 1).)2:
12 &oanG;/' against B'6 of the Bank (: above 7Bi,ed8 B'6 rate
11 ;/' against B'6 of /ther Banks 1).22:
1( /thers 1).22:
%he sales term or branch staff resonsible for loan sales and should be the owner of the
customer relationshi and must be held resonsible to ensure the accuracy of the loan
alication submitted for aroval. %hey must be familiar with the bank"s &ending
Fuidelines and should conduct due diligence on new borrowers! urose of the loan and
guarantors.
KL5 form to be done by the branch roerly and %ransaction @rofile Brom to be obtained
from the client duly filled in and signed and the same to be reserved carefully.
(onitoring: Branch shall e,ercise strong monitoring of the credit facility rovided to the
client and to ensure ayment of installment in time.
Reco,ery: %he collection rocess for loan will start when the borrower has failed to meet
one or more installments.
P
P

rocess )f
rocess )f

G
G

etting
etting

-
-

oan:
oan:
Apply !or 0oan
(1ith the !acility that you
2ant)
)0

#f arty e,cet the condition #f arty do not e,ect the condition

Company ta$es the
application and gives the
sanction advice (Company
Condition against the loan)
3ES 4
4o loan is given Party gives the
necessary documents
pen a loan account
(.y .an$)
Dis5ursement
))
/
/

et+ork .
et+ork .

!
!

oft+are in
oft+are in

MTB-:
MTB-:
%he 'hanmondi Branch of $%B& is not so big branch. Amount of tasks are directly
related with #%. #t is an online bank so that all comuters of the branch are connected to
each other through a server comuter. %he comuter also connected with the main server
of Cead /ffice. All deartments of the branch use Blora software and for clearing urose
they use H#KA;C software.
Flora So/tware? Blora is in+house banking software. Almost every bank in Bangladesh
uses this software. $%B& bought this software from Blora &td. #ts requirement is
A#HH% latform. %his software is use in every deartment of the branch= like Rfront
desk! cash! credit! accounts! clearing! foreign e,change etc.
$I2S0 so/tware% H#KA;C is software which develoed for entering and rocessing
of clearing house data. %his rogram is written under Bo,@ro database rogram. All
banks are using this software for clearing urose. %his oeration manual describes the 1
st
house menu! receit menu! ayment menu= return house menu! clearing menu!
maintenance menu and e,it menu to reare data diskette for clearing house. All
necessary code file are include in this software.
Problem of )nline Banking:
%he main roblem of 'igital 'ata Hetwork is that sometime the link goes down. At that
moment the online transaction cannot be e,ecuted. %he branch office suffers a lot because
of this 'igital 'ata Hetwork link interrution.
)3
!0)T
!0)T

,
,

nalysis:
nalysis:
%he ;A/% analysis comrises of the organi.ation"s internal strength and weaknesses and
e,ternal oortunities and threats. ;A/% analysis gives an organi.ation an insight of
what they can do in future and how they can comete with their e,isting cometitors.
%his tool is very imortant to identify the current osition of the organi.ation relative to
others! who are laying in the same field and also is used in the strategic analysis of the
organi.ation.
Strength:
Food management.
A bulk of qualified and e,erienced human resource is the strength
of $%B&
Brand name.
%he sonsor firms 7;quare Frou! Ae, Frou! A5# etc8.
Food customer service caabilities.
Better roduct quality offer to the customer.
Bully comuteri.e and online banking.
Boreign 6emittance
Weakness:
&ess manower.
&ess number of branches.
$ore focus on 'haka and 5hittagong.
%he comany gives online banking service but only cash tractions.
'eosit is more then the advances.
$%B& has not that much good market share then the other
commercial bank.
)4
@oor $arketing ;trategy.
pportunit!:
Branch e,ansion.
Business e,ansion.
%hey can launch credit card.
I,anding the comany"s roduct line to meet a broader rage of
customer needs.
;tart (0+hour banking.
Threats ?
/ther commercial bank and the multi+national comanies.
@olitical instability and corrution are threatening Bangladesh"s
economy.
Hatural disaster.
)9
1
1

ecommendation .
ecommendation .
C
C

onclusion:
onclusion:
Observation and Recommendation for
Customer service:
$%B& should include more differentiate roduct in their consumer
roduct= like+ Boreign 5urrency 'eosit Account! 6esident Boreign
5urrency Account etc.
%hey can imrove their customer service introduced by call center! hone
banking! given (0+hours banking etc.
5ustomers are not so much aware about different roduct. $%B& should
be concern about it
5ustomers are not so much aware about different charges. %hey claim to
the bank after debiting their account. $%B& can organi.e lift lets and
aer materials to inform them before the imosition of new charges.
5omlaint management system is not so good. Bank can set u a
comlaint bo, and customer can ut the comlain letter into the bo,. At
the day end oen the bo, screening the letter and try to solve the roblem
or send to relevant manager or deartments.
$ore staffs need in front desk to attend the customers.
%he software! which is used for giving customer service! should be
imroved.
$arketing strategy should be imroved.
)1
Bor the advertising the roduct! they used normal staffs. %hey should
aoint new emloyees for this segment. Ahen these emloyees are for
develoment! the normal official work is hamered.
%hey can launch credit card as a customer service.
Observation and Recommendation for
Credit Management:
$%B& should include more differentiate roduct in their consumer
credit scheme= like+ teacher loan! student loan! doctor credit scheme!
ersonal loan for women etc.
A good linkage is essential between front desk office D credit office. #f
a &oan alication declines! front office officials face customer queries
and dissatisfaction.
Nerification rocess needs to imrove because customers do not want
to disclose confidential information to unknown erson.
%o encourage loan reayment loan closing fees and early settlement
fees need to restructure.
%he management should emhasis more on the time lag between loan
disbursement and loan recovery.
%he credit deartment should e,and= like+ recovery! valuation etc
Cead office and Branch communication ga should be minimi.e.
&oan facility should be increased.
&oan rocedure should be clear and systematic.
32
Conclusion:
#t is a great leasure for me to have ractical e,erience in $utual %rust Bank &td. %his
internshi rogram is an integral art of BBA student. %he main urose of the reort
was to focus on the lending services to its valuable customers and the credit management
rovided by $utual %rust Bank as comrehensively as ossible. Although # did not have
much time to learn the whole rocedures but it was suortive to understand and gather
an initial banking management e,erience. As the long+term erformance of any
organi.ation deends on its intake of qualified eole and develoing them to erform
their best as a team! as well as individually.
31

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