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Chapter - 1

Organizational Overview

1.0 Rational of the study


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In the recent years, Banking Industry in Bangladesh has seen a considerable growth. Significant numbers of investors are becoming interested to invest their money in this sector. Banks are aggressively pursuing different strategies to take hold of new segments with purpose to discover new opportunities. Among various products and services offered by the Banks, SME is one of popular items. In the recent year every Bank emphasis to expand their SME sector enormously. Bank increase their SME budget and camping to capture the small and medium entrepreneur concentration. Bangladesh Bank motivated to the commercial Bank to increase their SME sector and give them loan on their SME Banking budget in low interest rate. As a student of faculty of Business Administration I think it will motivate someone to do his/her own business and also help to find job in Bank and financial SME sector. If we get wonderful feedback from the Bank then the fresh Graduates will be encouraged to operate their own business. And this will hugely help to decrease the job crisis in the job market. And our University can have some information on the SME banking which can contribute to improve our study on the SME Banking. For this I have done my internship report on the SME Banking activities of the MUTUAL TRUST BANK.

1.1 Background of the Mutual Trust Bank


The Company was incorporated on September 29, 1999 under the Companies Act 1994 as a public company limited by shares for carrying out all kinds of banking activities with Authorized Capital of Tk. 38,00,000,000 divided into 38,000,000 ordinary shares of Tk.100 each. The Company was also issued Certificate for Commencement of Business on the same day and was granted license on October 05, 1999 by Bangladesh Bank under the Banking Companies Act 1991 and started its banking operation on October 24, 1999. As envisaged in the Memorandum of Association and as licensed by Bangladesh Bank under the provisions of the Banking Companies Act 1991, the Company started its banking operation and entitled to carry out the following types of banking business: i) All types of commercial banking activities including Money Market operations ii) Investment in Merchant Banking activities iii) Investment in Company activities. iv) Financiers, Promoters, Capitalists etc. v) Financial Intermediary Services. vi) Any related Financial Services. The Company (Bank) operates through its Head Office at Dhaka and 69 branches. The Company Bank carry out international business through a Global Network of Foreign Correspondent Banks.

1.2 Mission of Mutual Trust Bank

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Aspire to be one of the most admired banks in the nation and be recognized as an innovative and client-focused company, enabled by cutting-edge technology, a dynamic workforce and a wide array of financial products and services.

1.3 Vision of Mutual Trust Bank


Mutual Trust Bank's vision is based on a philosophy known as MTB3V. We envision MTB to be: i) One of the Best Performing Banks in Bangladesh ii) The Bank of Choice iii) A Truly World-class Bank

1.4 Strategic Priority


To have sustained growth, broaden and improve range of products and services in all areas of banking activities with the aim to add increased value to shareholders investment and offer highest possible benefits to the customers.

1.5 Core Values


i) To become most caring bank-by providing the most courteous and efficient service in every area of business. ii) By promoting the well-being of the members of the staff. iii) By ensuring fair return on their investment through generating stable profit. iv) By assuming the role as a socially responsible corporate entity in a tangible manner through close adherence to national policies and objectives.

1.6 Objectives of the Bank


To build up strong pillar of capital, to promote trade, commerce and industry, to discover strategies for achieving systematic growth, to improve and broaden the range of product and services, to develop human resource by increasing employment opportunities, to enhance asset of shareholders, to offer standard financial services to the people, to keep business morality, to develop welfare oriented banking service, to offer highest possible benefit to customers.

1.7 Registered Name of the Company


Mutual Trust Bank Limited

1.8 Legal Form


The Company was incorporated on September 29, 1999 under the Companies Act 1994 as a public company limited by shares for carrying out all kinds of banking activities with 3|Page

authorized Capital of Tk. 38,00,000,000 divided into 38,000,000 ordinary shares of Tk.100 each.

1.9 Company Registration No.


C38707 (665)/99 on September 29, 1999

1.10 Bangladesh Bank Permission No.


BRPD (P) 744(78)/99-3081 on October 5, 1999

1.11 Registered Office:


MTB Centre, 26 Gulshan Avenue Plot 5, Block SE (D), Gulshan 1, Dhaka 1212

1.12 Swift Code


MTBL BD DH

1.13 Corporate Website


www.mutualtrustbank.com

1.14 Memberships
i) Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI, D) ii) The Institute of Bankers Bangladesh (IBB) iii) Bangladesh Foreign Exchange Dealers Association (BAFEDA) iv) Bangladesh Institute of Bank Management (BIBM) v) International Chamber of Commerce Bangladesh Limited (ICCB) vi) Association of Bankers Bangladesh Limited (ABB) vii) Bangladesh Association of Publicly Listed Companies (BAPLC)

1.16 Objectives
The broad objective of this project: To study SME Banking Activities of MUTUAL TRUST BANK Ltd. 4|Page

The specific objectives are: i) To find out Structure of SME division. ii) To know SME Product details. iii) To determine Operation Process of SME Loan Disbursement. iv) To know History of MTB Bank SME.

Chapter - 2

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The Activities Performed in Internship

The report has three parts. First part is the organization part where I covered briefly about the organization. Second part is the activities where I covered what I did in the office. I worked in general Banking, foreign exchange and SME department. In the third part, this is assign by supervisor, SME Banking Activities of Mutual Trust Bank. In this part I covered how Mutual Trust Bank operates SME Banking in the country. I mainly worked under different department of the bank for 3 weeks or more.

2.0 Works-Related
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General Banking General Banking consists of the main sections in the Branch. I worked ini) Fill up Account Opening/Closing From. ii) Fill up Payment order Issue Book iii) Cash Entry on Cash department reg. Book. iv) Fill up KYC From. v) Account Transfer. Foreign Exchange Service: i) Express Money. ii) Fill up Money Gram From and prepare all documents. iii) Fill up Western Union from and prepare all documents. iv) Fill up L/C Opening from and prepare customer documents. SME Department: i) Fill up SME loan Application from. ii) Help the SME officer to process the Loan Disbursement. iii) Fill up the Closing SME loan from.

2.1 Organization-wide 2.1.1 Definition of SME as per Bangladesh Bank Guide


The Bangladesh Bank has provided a Small Medium Enterprise (SME) outstanding definition which is circulated on 26 or 05 or 2008 that is given as following Bangladesh Bank: The definition has two parts one is Small Enterprise (SE) and Medium Enterprise (ME) Small Enterprise (SE): An organization would not be ideally Public Limited Company (PLC) and that organization must be followed Criteria. 7|Page

Service Concern: The owner of the business must have 25 employees as permanent workers and its credit amount will start from 50 thousand to 50 lac except the owner land property and building. Trade Concern: Its also like service sector which will have 25 persons employees as permanent workers and its credit amount will start from 50 thousand to 50 lac except the owner land property and building. Manufacturing Concern: It is deferent from above two. The Manufacturing concern will have 50 employees as permanent workers and its credit amount will start from 50 thousand to 150 lac except the owner permanent building and land. Medium Enterprise (ME): An organization which would not be Public Limited Company and that will fill up the following criteria: Service Concern: An entrepreneur will have 50 employees as permanent workers and its credit loan will be started from 50 lac to 1000 lac except the fixed land and building of the entrepreneur. Trade Concern: An entrepreneur will have 50 employees as permanent workers and its credit loan will be started from 50 lac to 1000 lac except the fixed land and building of the entrepreneur. Manufacturing Concern: An entrepreneur must have 150 employees as permanent or that organization must have asset of TK 2000 lac without owner fixed land or building. We duly note here that BB has lately asked us to submit our SME portfolio status as per Industrial Policy , although BB is yet to provide a formal circular stating or confirming that entities falling within the category as defined pursuant to Industrial Policy 2005 to be regarded as SME. It has, however, provided Guidelines for SE financing that govern our portion of SME lending operations and based on which we avail various refinancing facilities from BB. Furthermore, because of our arrangement with USAID for partial credit guarantee of US$1.1 million, which covers up to 50% of the lost principal amount for eligible SME investment, at Prime Bank we used slightly wider parameters (USAID did provide a definition of SME, which is broader than that of Bangladesh Banks SE definition) to conduct our SME lending operations.

Those enterprises that are not ideally public limited company

Enterprise

Criteria Number of Staff (Not More than) Fixed Asset (Except Land & building)

Trading/Services 25 BDT 50 Thousand BDT 50 Lacs

Manufacturing 50 BDT 50 thousand BDT 1.5 Crores

Small Enterprise

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Medium Enterprise

Number of Staff (Not More than)

50

150

Fixed Asset (Except Land & building)

BDT 50 Lacs BDT 10 Crores

BDT 1.5 Crores BDT 20 Crores

2.1.2 DIFFERENT SME LOAN PRODUCTS OF MUTUAL TRUST BANK LTD. MTB Bhagyobati MTB Bhagyobati loan is only for the SMEs owned by the women entrepreneurs. Features and Benefits: Features and Benefits: Loan amount range BDT 1.00 lac to BDT 50.00 lac Loan tenure up to 3 years Rate of interest 10% p.a (only in case of re-finance from BB) Up to BDT 5.00 lac is collateral free Easy repayment schedule No service charge or hidden charge Easy processing At least one year of business experience

MTB Krishi MTB Krishi is designed for direct lending in the agriculture sector. Only eligible farmers and agri SMEs may apply for the loan. Crops cultivation, fisheries, livestock & poultry are the priority sector of lending. Features and Benefits: Loan amount up to BDT 3.00 crore Loan tenure up to 5 years 9|Page

Rate of interest 10% p.a (only in case of re-finance from BB) Up to BDT 5.00 lac is collateral free Easy repayment schedule No service charge or hidden charge Easy processing Timely disbursement

MTB Mousumi SME customers needs additional fund in some occasions, festivals and seasons. MTB Mousumi enables those SMEs which has seasonal type of business. Features and Benefits: Loan amount up to BDT 10.00 lac Loan period range 01 to 12 months Attractive Rate of interest Up to BDT 5.00 lac is collateral free Easy repayment schedule 1% service charge and no other hidden charge Minimum 02 years of business experience Easy processing

MTB Revolving Loan Any SME, manufacturing, service, trading or farming, requires working capital for smooth operation of the business. This loan product enables those SMEs to meet their working capital requirements to support their operations and future growth. Features and Benefits: It is CC (H) and revolving type loan Loan amount up to BDT 50.00 lac 10 | P a g e

Loan period 01 year and annually renewable Attractive rate of interest Minimum 02 years of business experience At least 02 years of bank account transactions Account turnover to be 03 times of the loan amount Easy processing No service charge or hidden charge Requires collateral support

MTB Small Business Loan Enables the SMEs to expand their business. Features and Benefits: Loan amount up to BDT 50.00 lac Loan period up to 5 years Attractive rate of interest Easy repayment schedule Minimum 02 years of business experience 1.00% service charge Up to BDT 5.00 lac is collateral free Easy processing

MTB Digoon Enables the SMEs to get loan double amount of their deposit. Features and Benefits: Loan amount range BDT 5.00 lac to BDT 20.00 lac Loan tenure up to 05 years 11 | P a g e

Attractive rate of interest Monthly repayment Security 50% Fixed Deposit (FDR) of loan amount Easy processing

MTB Green Energy Loan MTB Green Energy Loan is an environment friendly loan enables the prospective customers to set up renewable energy projects such as solar, biogas, wind, hydro and any other potential renewable plant. Any individual, business entrepreneurs, NGO, institutions having capacity to repay may apply for the loan. Features and Benefits: Loan amount up to BDT 3.00 crore Loan tenure up to 10 years Rate of interest 9% p.a (only in case of re-finance from BB) Easy repayment schedule Wholesale lending to eligible NGOs/service provide in case of home scale plant No service charge or hidden charge Easy processing

2.1.3 Sme Position : Product wise (summarized) as on January 2009 to February 2012
(BDT in Core)

Product name Small business Loan MTB Digoon

Outstanding Amount 49.07 0.666

Overdue Amount 3.70 0.21

NPL Amount 1.42 0.27

NPL % 2.89 40.91 12 | P a g e

MTB Green Energy MTB krishi MTB Microfinance MTB Mousumi MTB Revolving MTB Bhagyaobati MTB Gunabati Total

25.25 12.28 53.18 0.42 133.22 4.88 1.25 280.21

0.00 0.28 0.00 0.00 0.00 0.33 0.00 4.52


None Performing Loan

0.00 0.00 0.00 0.06 0.00 0.19 0.00 1.94

0.00 0.00 0.00 14.29 0.00 3.89 0.00 0.69

3.89 0 14.29 0 2.89

Small business Loan MTB Digoon MTB Green Energy MTB krishi MTB Microfinance MTB Mousumi 40.91 MTB Revolving MTB Bhagyaobati MTB Gunabati

0 0 0

Figure: None Performing Loan of MTBL as on 2009 to 2012. Here we the total amount of outstanding loan is tk 280.21 crore and out of them non performing loan tk 1.94 crore that means 0.69% is NPL if we see the small business loan project then we will find total amount of loan of this project is 49. 07 tk and from this amount non performing loan is 2.89%. MTB Digoon its NPL is 40.91% and it has been provided total loan amount is tk 0.666 core. MTB Green Energys total outstanding loan is 25.25 and it has no non performing loan . MTB krishi also has no non performing loan and it s total outstanding loan is tk 12.28crore. MTB Microfinance loan project has no NPL. MTB Mousumi has total outstanding loan is tk o.42 crore and it has npl 14.29% of it is total loan. MTB Revolving loan project did not recognize any non performing loan . MTB Bhagyaobati loan project has 3.89% NPL & total amount of loan from the project is tk 4.88 crore. MTB Gunabati is a brilliant project because it has no NPL.

2.1.4 SME Department Structure:

Senior Vice President (SVP)

Senior Assistance Vice President (SVP) 13 | P a g e

Junior Assistance Vice President (JAVP)

Senior Officer

Senior Officer

Senior Officer

Senior Officer

Senior Officer

Senior Officer

Senior Officer

Senior Officer

Officer

Officer

Figure: Structure of the SME Department

2.1.5 SWOT ANALYSIS


SWOT analysis is an important tool for evaluating the companys Strengths, Weaknesses, Opportunities and Threats. It helps the organization to identify how to evaluate its performance and scan the macro environment, which in turn would help organization to navigate in the turbulent ocean of competition.

STRENGTHS
Company Reputation: MUTUAL TRUST BANK has already established a favorable reputation in the banking industry of the country particularly among the new comers. 14 | P a g e

Within a period of 5 years, MTB has already established a firm footing in the banking sector having tremendous growth in the profits and deposits. All these have led them to earn a reputation in the banking field. Investors: MTB has been founded by a group of eminent entrepreneurs of the country having adequate financial strength. The shareholders of the bank are all institutions themselves, which adds to the financial strength of the bank. This is one of the main reasons why MTB has been able to overcome the huge setup cost of the SME loan distribution channel and also the huge running cost of the SME Department. Facilities and Equipment: MTB has adequate physical facilities and equipments to provide better services to the customers. The bank has computerized and online banking operations under the software called MBS banking operations. This has shortened the loan processing time considerable. At the same time, MTB can utilize the distribution channel of its major investor to operate in the rural regions of the country. Advertising and Promotion of SME Loan: This is a major set back for MTB and one of its weakest areas. MTBs adverting and promotional activities are satisfactory but its SME loans are not advertised well. It does not expose its SME product to general public and are not in lime light. MTB does not have neon signs or any other type of advertisement for SME loans in the city. As a result people are not aware of the existence of this bank. Unsatisfactory Remuneration Package: The CROs are not entirely satisfied with the compensation package they receive. There is no target-based bonus system in the bank, although the CROs have to meet targets. Although the CROs are provided with motorcycles and mobile phones, it is not enough to motivate them. Huge Operating Cost: Because of the current structure, the operational cost of SME loans is high. This has reduced considerably the profit from this business unit. Diversification: MTB can pursue a diversification strategy in expanding its current line of business. The management can consider options of starting merchant banking or diversify in to leasing and insurance. By expanding their business portfolio, MTB can reduce their business risk. Product Line Proliferation: In this competitive environment MTB must expand its product line to enhance its sustainable competitive advantage. As a part of its product line proliferation, MTB can introduce new, more segment-oriented products in the SME sector. Use of ATM in Disbursement Process: ATMs and POS machines can be used to disburse with loans more efficiently. If each unit office is provided with a POS machine, it would be easier for clients to repay loans. Also, it would reduce the pressure on the CROs. Multinational Banks: The emergence of multinational banks and their rapid expansion poses a potential threat to the new growing private banks. Due to the booming energy sector, more foreign banks are expected to arrive in Bangladesh. Moreover, the already 15 | P a g e

WEAKNESSES

OPPORTUNITIES

THREATS

existing foreign banks such as Standard Chartered are now pursuing an aggressive branch expansion strategy. This bank is establishing more branches countrywide and has already launched its SME operations. Since the foreign banks have tremendous financial strength, it will pose a threat to local banks. Upcoming Banks: The upcoming private local banks can also pose a threat to the existing private commercial banks like MTB. It is expected that in the next few years more local private banks may emerge. If that happens the intensity of competition will rise further and banks will have to develop strategies to compete against an on slaughter of foreign banks. National Specialized Banks: NSBs pose the major threat to MTB in the SME sector. At present, they hold the major portion of the SME market. If these banks begin to think aggressively about financing the SME sector, they may prove to be MTBs prime competitors.

2.1.6 SME Department Work:


Senior Vice President (SVP): Audits the MTB Branches all over the country and issues or Check the monthly SME report which MTB branches send to the principal office. And send the Quarterly report to the Corporate Head office. Senior Assistant Vice President (SAVP): Before sending to the SVP, SAVP check the SME report and also Audits the MTB Branches. Junior Assistant Vice President (JAVP): Senior Officers are placed under the Junior Assistant Vice President. Junior Assistant Vice President distributes the Branches to the senior officers and checks the SME report which senior officers send. Senior Officers: MTB Branches SME departments are authorized under the senior officer. Senior officers check the MTB Branches report and prepare the quarterly reports which are sent to the Corporate Head Office. Officers: Officers provide the helping hand to the senior officers to make the Quarterly report and to check the MTB Branches SME report.

2.1.7 Sector wise Distribution of SME Banking


Service Trading Manufacturing Service, 15% Manufacturing, 50%

Trading, 35%

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Figure: Sector Wise Distribution of SME Banking

2.1.8 Terms and Condition of SME Loan


The SME department of Mutual Trust Bank will provide SME loans to potential borrower under the following terms and condition: i) The business must be in operation for at least one year. ii) The business should be legally registered, Ex. (valid trade license, income tax or VAT registration). iii) The business should be environment friendly. iv) The business must have a defined market with a clear potential growth. v) Financial statement.

2.1.9 SME Loan Process


When a customer come to the MTB Branch for a loan request, first s/he meets with the SME department Officer to discuss about the loan, after fulfill the trams and condition the following process takes place. Loan application to the MTB Branch

Prepare the customer document (National ID, Trade licence) 17 | P a g e

With recommendation Branch send the loan application to the head office

Branch received sanction letter from head office

Prepare legal documents according to sanction advice

Then Disburse the loan Figure: Mutual Trust Bank Loan Disbursement Process

2.2 Monitoring
Monitoring is a system by which a bank can keep track of its clients and their operations. So monitoring is an essential task for a Bank to know the borrowers activities after the loan disbursement. The monitoring purpose is to know the entire business condition and all aspects of the borrowers so that mishap can be avoided. MTB monitor their clients under the followings. i) Business Condition: Bank monitors the business frequently to understand whether the business is running well or not. MTB monitor their client business at least once a month. ii) Production: Bank also monitors the production activities of the business and if they find any problem in the production process, Bank will try to help the entrepreneur to solve the problem. 18 | P a g e

iii) Sales: Bank Monitor sales proceed to forecast the monthly sales revenue, credit sales etc. which ensure the recovery of the monthly loan repayments from the enterprise as well as to take necessary steps for future loans. iv) Investment: Bank also investigates the entire loan has been invested in to the business or not. If the money is utilized in another area Bank tries to know the reason. v) Management of raw materials: In case of a manufacturing enterprise Bank also investigates the raw materials of the company.

2.2.1 Closing Procedure of SME Loan


To close the SME loan clients has two options: i) To pay monthly installment with interest.

ii) And another is to pay in one term with interest.

2.2.2 Others relevant activities


Hajj scheme: Hajj is compulsory for all who are the ability to hajj at that cause Hajj is important for all. Hajj is the important way for the Islam but many people have the interest but there have no ability. Many people create the ability but at that time they are physically weak. That causes Mutual Trust Bank open this scheme. Requirements for this scheme: i) Must be age above 18. ii) Account holder must be citizen of the Bangladesh. iii) Account holder must need the attested photo with introducer. 19 | P a g e

iv) Gradient can maintain their account for the child. Duration of the scheme: i) This account is duration time is 1 year to 25 year. ii) 12 monthly schemes within one year. The way of the payment: i) Scheme must pay at 25 dates every month if this date is holiday at that time it will pay at next working day. ii) If scheme pay in cheque at that time cheque clearing must at 25 date every month. iii) If the accountholder is give the permanent paying order at that time charge 50 taka and per scheme is 5 taka.

Chapter - 3

Problem Faced in SME Financing


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3.0 Identified/Observed in the Organization


At the beginning phrase of the SME Mutual Trust Bank Limited faced lots of problems and challenges. There was a shortage of capital, absence of high technology, lack of Skills entrepreneur, Branch shortage etc. Those things I was identify thought out my internship. These problems are describe in brief in below 3.0.1 Financial Constraint At the very beginning of the SME, MTB have financial constraints. MTB does not have enough liquid money so that they failed to satisfy every customers need. 3.0.2 Absence of High Technology Absence of high technology was another constraint for the MTB. At that time they do not have strong inter-banking software so that they failed to contact with different SME service centre. 3.0.3 Lack of Skills Entrepreneur 21 | P a g e

At that time entrepreneurs were not educated enough. They do not have sufficient skills about the different types of paper requirement. It hampers the loan processing time. 3.0.4 Employee Skills At that time employees do not have sufficient knowledge about SME. It was costly to train all the employees. So lack of proper training to employees was another obstacle for SME growth. 3.0.5 Lack of Information At that time SME just got a new shape in our country. So no one has clear idea about it. So vague and wrong information were passed among the people. 3.0.6 Natural Effect If the loan taker fall on a natural calamites as like if crops may destroy due to rain and that is why farmer may fall in great troubles and this SME loan are not efficient enough to provide additional financial aid to farmer. 3.0.7 Globalization We can say that globally SME loan is not spreading enough.

3.1 Steps Taken to Overcome the Problem


In order to overcome the above mentioned problems MTB started follow some steps, these steps were i) Mutual Trust Bank started to expand their SME network. ii) Training Session for employees. iii) Tried to Overcome Financial Constraint. iv) Advancement of Technology.

3.2 Academic Preparation


In our Books we could not find the details road and rail network of the SME. What we learn in our Entrepreneurship Development course that not enough for SME. But in Bank we can know the details of SME. SME product, lone disbursement process, terms and conditions etc. Which motivate to do own business and also help to find job in Bank and financial SME sector. If we get wonderful feedback from the Bank then the fresh Graduates will be encouraged to operate their own business. And this will hugely help to decrease the job crisis in the job market. Our university can teach us more broadly on SME Banking. University can add this topic in our 22 | P a g e

Entrepreneurship Development and Bank fund courses, which will help the student in future when they will do their own business.

Chapter - 4

Implication to Organization and AIUB

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4.0 Implication to Organization and AIUB


Mutual Trust bank plays a vital role in the SME sector of Bangladesh. Up to April 2010, MTB provides loans for 65,000 clients and in total 100 crores TK. MTB is the pioneer in the SME loan sector. They have taken different strategies for the development of this sector, because it is the main profitable product of MTB. In the recent years they launched different types of SME loan products to mitigate the different customers needs. Throughout the 3 months internship period this report found some shortfalls of SME sector of MTB. So, to resolve the shortfalls MTB can take some steps: i) Should reduce the interest rate and increase tenure. ii) Should increase marketing activities in the urban area. iii) Some of the borrowers do not install a signboard in a visible place of business or manufacturing unit mentioning that Financed by Mutual Trust Bank Ltd. iv) Identify new customer segment with new services and products. And for AIUB i) Add SME Banking topic in our course broadly. ii) Present the merit side of SME. 24 | P a g e

iii) Encourage fresh Graduate to do own business by knowing SME. iv) Arrange a study tour to visit the rural area SME activities.

Chapter - 5

Conclusion

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5.0 Recommendation
For better improvement of SME Banking activities MTB can consider the following recommendation: i) The Bank should Reduce the interest rate when Bangladesh Bank refinance on SME. ii) The Bank should Increase their marketing activities in the urban area because other competitive Banks are given huge advertisement to increase their customer. iii) The Bank should give proper training to the SME employee. iv) The Bank should Increase amount of SME loan. v) The Bank should Increase amount up to 10 lacs without collateral security for providing loans. vi) The Bank Should Frequently check clients are they perform all the terms and condition of SME loan. vii) The Bank should provide loans to the leather and jewelers industry. And the following recommendation for AIUB i) Add SME Banking topic in our course broadly. ii) Identify the borrower business present situation to give assignment. 26 | P a g e

iii) Arrange a study tour to visit the rural area SME activities.

5.1 Conclusion
It is a great pleasure for me to have practical experience in Mutual Trust Bank Ltd. Without practical experience it couldnt be possible for me to complete my internship report. There are numbers of commercial banks operating their activities in Bangladesh. The Mutual Trust Bank Ltd. is a promising one of them. For the future planning and the successful operation in achieving its prime goal in this current competitive environment this report can be a guideline. And if anyone wants to do their internship report on SME Banking they can find some guideline from this report and carry on his/her report after this internship report. SME is the most rising sector to expand and Mutual Trust Bank has every potentiality to explore the SME business throughout the country. This report presents some significant ways to meet the future challenges in SME business. Nevertheless, the success of SME banking depends on the expertise and dedication of the SME department officers. That is why continuous training and motivation is very much relevant to run the SME banking successfully.

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References
1. Ayyagari, M., Beck, T., and Demirg-Kunt, A., 2007. Small and Medium Enterprises across the Globe. Small Business Economics 29, Pg. 415-416. 2. De la Torre, A., Martinez Peria, M.S. and Schmukler, S., 2008. Bank Involvement with SMEs: Beyond Relationship Lending. World Bank. Mimeo. 3. Websites of Mutual Trust Bank: http://www.mutualtrustbank.comAnnual report of Mutual Trust Bank Ltd. 2010. 4. Bhargava, A., (2000), SME Banking, found in www.scrib.com . 5. Newspaper: The Daily Star (Today business) SME Banking in Bangladesh. Arthur, Md. Shaiful.

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