SUBMITTED TO:

Swapna Choudori
Lecturer

Dept. of Business Administration

UNIVERSITY OF DEVELOPMENT ALTERNATIVE

SUBMITTED BY:

NAME ID/NO
Sajun Saha 021121078
Md.Shakibur Rahman 021121066

Dept of Business Administration

Batch: 36th (B)

 Letter of Transmittal
The supervisor
BBA program
Faculty of business Administration
University Of Development Alternative,
Dhaka.
Subject: Submission of the BBA report.
Dear Sir,
With due respect I would like to state that I am a student of dept. of BBA. It
is a pleasure for me to be able to present my report on Standard chartered
Bank. I express my study to you for your continuous support that made me
possible to complete the report. I remember that you inspired me a lot to
complete this report. I would like to express my hearted inspiration,
inspirations and valuable advices.
Thank you for accepting the report. I am glad to submit the report to you.

Your sincerely

Name: Md Shakibur Rahman & Sajun Saha

BBA Program 36th (b) Batch
Std. ID: 021121066 & 021121078
University Of Development Alternative,
Dhaka.
 Acknowledgement

At first I want to thank Allah. Than my parents & my entire teacher.

The study has been made possible through the help of various people who
give me their love, encouragement and time. I would like to express my
sincere thanks and gratitude to all people who were involved and helped
me in different ways in completing this study. Acknowledgement of debt
should start with the supervisor, Swapna Chowdhury maam, lecturer in
dept. of BBA, University Of Development Alternative, Dhaka, Bangladesh for
her constant suggestions, guidance and help during the courses of my
research work. I am immensely benefited from her stimulating advice.
Without his guidance, it would not have been possible for me to complete
this work. It was indeed my good fortune to have had such an able and
devoted guide. I am also thankful to my group for their cordial behavior,
entertainment and other supports.
I have also discussed with many people working in this field and shared my
and shared my ideas with them. Their suggestion, experience and written
materials on the subject have been very much helpful to me in getting into
the problems and steer the report appropriately. I am thankful to me.
It is a pleasure for me to present report on SCB. The report is
prepared solely for the purpose of the BBA under the University Of
Development Alternative.
 Executive Summary

Mutual Trust Bank LTD is a third generation private bank in Bangladesh. It started its
operation in 1999. Now a day it has 82 branches all over the country. This report is based
on the Practical of MTBL, Banani Branch. This report is divided in to five parts.
MTBL has very good Organizational structure and the officer of every level strictly
follows it. Every employee has to follow the hierarchy. Banani Branch was the thirty
three Branch of MTBL.

The first part describes the introduction, objective the report, sources of information, and
limitations & the job responsibility of the internship and overview of banking in
Bangladesh. During this internship period what I have done is described here. In that time
I face some problem in the banking system and give the solution of the problem.

In the second part of this report background of the bank is described. How the bank was
established, the promoters of the bank, capital & deposit o the bank described here. Also
describes the product, services and different types of loan of MTBL. MTBL give
competitive interest rate on their deposit. They also have some different saving plan for
their valuable clients. They provide loan to their clients very fast and easy way. The
interest rate on the loan is competitive to other bank. They have card division. Different
types of debit card and credit card and there features. Repayment systems credit card. I
have also discussed the required papers necessary for these cards.

Third part describes Findings and interpretation.

The last part is the conclusion part and here I have given some of my critical observation
during the internship period and based on that given some recommendation for the
overall bank.
Table of contents

Chapter one
Title No. Chapter
1.1 Introduction

1.2 Origin of the study

1.3 Rationale of the Study

1.4 Methodology of Data collection

1.5 Limitations of the study

1.6 Objectives
Background Of SCB
Historical Background Of SCB

Chapter Two
Title No. Chapter
2.1 Vision

2.2 Mission

2.3 Objective

2.4 Products And Services

2.6 Banks Philosophy

2.8 Different types of Account

2.9 ATM services

 2.10 Different types of queries

2.11 Credit rating report

Chapter Three
3.1 Financial summary of 2012

Last 5 years financial statement

3.2 Ratio Analysis

Chapter Four
4.1 Recommendations
4.2 Conclusion
 Chapter: One
Introduction

1.1 Introduction:

Banks recommitted to provide high quality financial services/products to contribute to the

growth of the country through stimulating trade and commerce, accelerating the pace of
industrialization, boosting up export, creating employment opportunity for the youth,
poverty alleviation, raising standard of living of limited income group and overall
sustainable socio-economic development of the country. In achieving the aforesaid
objectives of the Bank, Credit Operation of the Bank is of paramount importance as the
greatest share of total revenue of the Bank is generated from it, maximum risk is centered
in it and even the very existence of Bank depends on prudent management of its credit
portfolio. The failure of a commercial Bank is usually associated with the problem in
credit portfolio and its less often the result of shrinkage in the value of other assets. As
such, credit portfolio not only features dominant in the assets structure of the Bank, it is
crucially importance to the success of the Bank also.

Bank can lend up to 84% of the total amount of its total time and demand liabilities. The
rest 16% is kept as Statutory Liquidity Reserve (SLR) with Bangladesh Bank. But in
practice banks do not lend the whole 84% and a certain portion is set to meet up the day-
to-day banking operations and also meet up the liquidity requirement of the depositors.
Bank can lend up to 15% of its paid up capital without the approval of Bangladesh Bank
but above that level approval from Bangladesh Bank is required.

1.2 Origin of the Report:

The internship report is a basic requirement for the BBA program. The proposed topic is
Practical Orientation on General Banking Activities of Mutual Trust Bank
Limited. The topic is assigned by Mr. Mahedi Hasan Assistant Professor Department of
Business Administration of Prime University.

1.3 General Objective:

The objective of this report is to fulfill the requirement of the internship program as a
course requirement of BBA program of Prime University. The general Objective of the
study is to give realistic viewpoints of expediency and significant function of overall
departments of Mutual Trust Bank Limited and specially the Practical Orientation on
General Banking Activities of Mutual Trust Bank Limited.

1.4 Background of the Study:

Internship is a pre-requisite for completing the practical side of to fulfill the BBA
program. Theoretical sessions alone cannot make a business student efficient and perfect
in handling the real life business situation. Therefore it is important for a student to
comprehend the application of theoretical knowledge in practical fields through
internship program. This program may be divided into three phases;

Orientation of the organization: To introduce the internee with the functions and
performance of the organization.
The project part: Pertaining to a particular problem of a searching topic matching
with internees capacity, interest of the organizations requirements.
The report writing: To summarize the internees analysis findings and
achievements in the preceding two phases.

1.5 Methodology of the Study:

Ive used both primary and secondary sources for the collection of data. The
methodology of the study followed by the following process:

1.6Limitations of the study:

I have tried to my level best to provide with all the necessary information about Mutual
Trust Bank Limited (Banani Br.) Supplied by the managers and employees best ability
but due to the exhaustive nature of this study the most secret & strategic ethics could not
be brought into this report. As having the status of an empirical study, this report is
subject to following limitations:

To protect the organizational loss in regard of maintaining confidentiality, some parts

of the report are not in-depth like DD, SWIFT etc.

The duration of the intern period is not sufficient to learn all the Procedure/ activities
 of Credit Division as well as general banking and foreign exchange operation.

Lake of experience has also acted as constrains for the exploration of the topic.

Some participants were unable to spare enough time because of their work schedule.

There are few (2) new employees who do not know the exact work activity and they
did not provide the accurate information.

The findings of the study are based on the primary data provided by the participants,
some time it could be biased.
 Chapter: Two
Overview of MTBL

2.1 Mutual Trust Bank Ltd:

Mutual Trust Bank Limited (MTBL) is one of the leading third generation private sector
commercial banks that started its banking operation in Dhaka on October 24, 1999. It has
focused on the established and emerging markets of Bangladesh. Concentrating hard on
the activities of its area of specialization, MTBL has been able to achieve excellent
market standard with competent customer service. By means of such measures the bank
intends to grow and increase shareholders' value. Mutual Trust Bank pledges to maximize
customer satisfaction through services and build a trusting relationship with customers,
which has stood in the test of time for the last nine years.

The emergence of Mutual Trust Bank Limited was at the juncture of liberalization of
global economic activities. Not only this, it comes forward at a crucial state of affairs
when Bangladesh was undergoing through economic reforms and trade liberalization
according to the Uruguay Round Agreement, World Bank (WB) and International
Monitory Fund (IMF) recommendations. The experience of the prosperous economies of
the Asian countries, in particular of South Asia, has been the driving force and the

strategic operational policy option of the bank. The company philosophy - "Setting a new
standard in banking" has been precisely an essence of the legend of its success in the
Asian countries.

2.2 Organizational Structure of MTBL:

Managing Director

Deputy Managing
Director

Senior Executive
Vice President

Executive Vice
President

Vice President
 Senior Assistant
Vice President

Assistant Vice
President

Senior principal
Officer

Principal Officer

Officer

Junior Officer

Assistant Officer

2.3 Mission:

We aspire to be the most admired financial institution in the country, recognized as a

dynamic, innovative and client focused company that offers an array of products and
services in the search for excellence and to create an impressive economic value.

2.4 Vision:
To be the bank of first choice by creating exceptional value for our clients, investors and
employees alike

2.5 Objectives of the Bank:

Provide standard financial services and wealth maximization.

2.6 Banks Philosophy:

With the mission to become a dependable client focused financial institution in the
country by proving service with trust and integrity

2.7 Promoters of the Bank:

The promoters of the bank are renowned industrialists in the arena of Textiles,
Pharmaceuticals, Tannery, IT, Medicare and Real Estate sectors. There are 13 directors in
this bank. The founder chairman of Mutual Trust Bank (MTB) is Mr. Syed Manzur
Elahi, the founder chairman of Apex Tannery Group and Pioneer Insurance Co. he is also
the chairman of the Bangladesh Association of Banks (BAB). The chairman of MTB is
Mr. Samson H. Chowdhury; he is also the chairman of the largest conglomerate of the
country known as Square Group of Industries. Other big names are such as Advanced
Chemical Industries (ACI) Ltd, East West Properties Development Ltd., SAHCO
International Ltd., associated builders Corporation Ltd. Have participated in the equity of
the bank.

2.8 Different types of Account at MTBL:

MTBL have the following types of accounts:

Current Account

It is easy to manage every ones daily finances with an MTBL current account. Current
Account is normally for those who have business transaction or a huge amount of
transactions in every month. A current account holder can make several times of
transaction in a day. Making payments has never been so simple. No one is needed to
rush around to pay his/her bills with a current account. Just he/she can simply write out a
cheque and mail it at their convenience. In case of current account bank do not pay any
interest for any amount.

Savings account:

Savings Account is a secure, rewarding and accessible way to manage routine money
matters effectively. Savings account is for those who have limited transaction in every
month. It is easier to open this account. Normally savings account holders can not make
more than two or three transaction in a week. There is also limitation of transaction huge
amount without proper declaration. In case of savings account bank will pay at a rate of
interest for any amount. Now the interest rate of this account is 5.5%. Bank has the rights
to change this interest rate for changing their business policy.

FDR:

It is one of the best accounts by where an investor can get best returns from his/her
invested amount. Here the investor invests their money for a certain period. And bank
will pay a high interest rate for this account. MTBL have three different periods with
three different rates. This rate chart is given here.

Duration Interest Rate

 1 month 8.50%
3 Months 11.50%
6 Months 11.00%

12 Months to 24 Months 11.00%

Bank has the rights to change this interest rate for changing their business policy.

2.9 Different Types of Loan:

MTBL do not provide very large loan. They provide the following loan to its clients:

Consumer Loan:

MTBL provide consumer loan to improve the life style of the clients. Only salary
executives /professionals can avail this type of loan. They give the loan on the basis of
the clients salary. The age limit of the clients should be 21-60 years. MTBL give
minimum Tk 50,000 and maximum Tk 10,00,000 as a loan. Clients can repay the loan
from 12-60 installments. The interest of this loan is comparatively low that is 14%. By
taking this loan any one can purchase TV, Refrigerator, pc, furniture and other home
appliance.

Car Loan:

MTBL allow car loan for their clients to make their dream true. Any professionals,
government executives, businessman can apply for this loan. MTBL gives loan for brand
new/ reconditioned car. The loan amount is 70% value of the car and that should not
exceed maximum of Tk 20 lac. The interest rate is 16% and they also required 1% service
charge. The clients can repay the loan within 5 years.
Home Loan:

MTBL provide home loan on easy terms and without hassle. Any businessman,
professionals and government service holder can apply for this loan. They provide
maximum Tk 50 lac for house building or purchasing apartments. The interest rate is 15%
and they take 1% as service charge. Clients can repay the loan from 5 to 15 years on the
basis of the loan.

Home Repair Loan:

MTBL provide this loan to the house owner for repairing or renovation purpose. They
provide loan only for residential building not for commercial building. The maximum
loan amount is Tk 5 lac and they also take 2% service charge. Clients can repay the loan
within 5 years.

Small Business Loan Scheme:

MTBL provide this loan for small business man who really want to expand their business
and honest to their business. They provide this loan on easy terms and without hassle.
The maximum loan amount is Tk 50 lac. They do not require any collateral security up to
loan amount of Tk 5 lac.

2.10 Different schemes at MTBL:

Mutual Trust banks aim to satisfy all clients, regardless of how big or small they may be.
Individuals are counseled on the best type of accounts suitable to them such as Current,
Savings, Short Term Deposits, Fixed Deposits, Consumer Asset and Liability Products,
etc. Apart from the conventional banking operations MTB strives to introduce an array of
products and services and already launched a number of consumer banking products with
the aim of popularizing consumer banking operations and offer higher return to its
clients.

Different types of schemes of MTBL are given below:

1. Brick by Brick Savings Scheme.

2. Millionnaire Plan.
3. Double Saver Plan.
4. MTB Education Plan.
5. Monthly Benefit Plan.
6. MTB Graduate
7. MTB Senior
8. MTB Kotipati
9. MTB Junior
10. MTB Inspire

MTB Double Saver Plan:

MTBL offer double saver plan to its valuable clients. Any one can deposit money for 6
years and after 6 years they can get the double amount. In this case the minimum amount
should be al least Tk 50,000 and there is no maximum limit. MTBL give 12.25% in this
segment. If anybody withdraws money before the maturity, they will get only 6.25%
interest on the deposit.

MTB Monthly Benefit Plan:

Any Individual, NGO, Educational institution etc can invest their saving in this plan.
The clients may open more than one account in the same branch. Minimum deposit is Tk
100,000.The maturity period is 1 years. For premature encashment, interest will be paid
as per savings rate but no interest will be paid if en-cashed within one year.

Examples of Deposit & Monthly Income:

Deposited Tenure Monthly Monthly Monthly

Amount Benefit (Before Benefit for TIN Benefit for non
tax) holder TIN holder
(deduction of (deduction of
10% source 15% source tax)
tax)
100000 1 year 1000 900 850
200000 1 year 2000 1800 1700
300000 1 year 3000 2700 2550
400000 1 year 4000 3600 3400
500000 1 year 5000 4500 4250
Allocation of Budget

Type of Facility Allocated Budget

i. Small Enterprise Financing Tk. 150 Crore
ii. Consumer Financing Tk. 50 Crore

2.11 Features of Products:

Small Business Loan Scheme

Application Fees Tk. 500

Credit Ceiling Tk. 5 Lac without collateral
Above Tk. 5 Lac with collateral
 Interest Rate @ 16.00% p.a. at quarterly rest
Risk Found @ 1.00% or minimum Tk. 500 shall be realized once at time
of disbursement of loan
Payment Period Equal monthly installments including interest within 3-5
years

Consumer Loan Scheme

Application Fees Tk. 100

Credit Ceiling Maximum Tk. 3 Lac
Interest Rate @ 18.00% p.a.
Service Charge @ 1.0% p.a.
Risk Found @ 2.0% p.a.
Payment Period Equal monthly installments including interest within the period
ranging up to maximum 3 years.

Home Loan Scheme

Credit Ceiling Minimum Tk. 5 Lac

Maximum Tk. 50 Lac
Interest Rate @ 15.00% p.a. (to be charged annually)
Documentation Charge @1.00% p.a of loan amount to be realized on acceptance of
loan
Debt-Equity For purchasing flats/house:
For laon upto Tk. 20 Lac = 75:25

For loan above Tk. 20 Lac = 70:30

For construction on own land:
i) Minimum 10% cash involvement
Payment Period 5 years to 15 years
Home Repair or Renovation Loan Scheme

Credit Ceiling Maximum Tk. 5 Lac

Interest Rate @16.00% p.a., at quarterly rest
Processing Fee @1.00% p.a. of loan amount sanctioned
Risk Fund @1.00% or minimum Tk.500 shall be realized once at time of
disbursement of loan.
Payment Period Maximum 5 years with 3 months grace period.

Auto Loan Scheme

Credit Ceiling Minimum Tk. 5 Lac
Maximum Tk. 20 Lac
Interest Rate @16.00% p.a., at quarterly rest
Service Charge @1.00% p.a.
Debt-Equity 70:30
Payment Period Maximum 5 years

Paper or Document Required: Product wise checklist enclosed

Loan Application Form: Enclosed

2.12 Process of Getting Loan:

Apply for Loan

(With the facility that
you want)

Company takes the

application and gives the
sanction advice (Company
Condition against the loan)
 YES NO

Party gives the No loan is

necessary documents given

Open a loan account

(By Bank)

Disbursement

How bank make its advance secured:

Bank make secured his advance by (1) Taking Lien (2) by hypothecation (3) by pledge
(4) mortgage of property (5) Financial Instrument such as FDR, etc.

Bank must be careful to make secure the amount of loan given to a party. Collateral base
loan such as (1) Cash Credit (hypo) Loan and (2) Mortgage of Land and building etc, the
chain of documents for as Title of Property need to be examined and to be vetted by
banks panel lawyer.
Chapter: Three
 Financial Analysis of
MTBL

3.1Ratio Analysis:
1.

=4.66

2.

=0.36

3.
 =0.06

4.

= 0.36

3.2 SWOT Analysis of MTBL:

Every organization has some internal strengths and weaknesses and also has some
external opportunities and threats in its whole life cycle. This is called SWOT analysis.
Here briefly give an idea about the Mutual Trust Banks internal strengths and
weaknesses, and external opportunities and threats as I have explored in the past twelve
weeks.

Strength:

Well-capitalized Bank with potential to increase capital base continuously.

In the ranking of Bangladesh Bank, in 2005 MTBL was rewarded as a first group
bank.

The Board of Directors are very well reputed business personnel.

Computerized banking and excellent customer services.

MTBL provides its customers excellent and consistent quality in every service.

MTBL classified loan is still nil, which is a very good sign for MTBL. Classified
loan nil means there is no loan defaulter of issued total loan and advance.
Major commercial areas have one or more than branches in different locations.
Most of the high officials or top executives are very experienced and efficient in
their working areas.
Most of the employees know there job very well what is require to be done.

MTBL also have well established corporate culture.

Weakness:
 Limited workforce: Mutual Trust Bank has limited human resources compared to
its financial activities.
Limited Advertisement: Mutual Trust Bank has a lacking of advertisement both in
printed media and Electronic media. Now in this global arena it is a great
opportunity to reach their goal by using these media. Unless it will be a great
weakness for any profit oriented organization.
Limitations on Software: This is the age of computer. They are still using the
older version of software. So it is not only creating some problems for the official
personnel to work properly but also delaying to serve their customer.
They cannot provide fully automated services. They write the pay order manually
and issue checkbooks manually where as some other bank provide it through
computer and it saves their time.
They dont have sufficient number of ATM booth of their own around the country.
So it creates a bad impression on the customers mind.
Some employee takes so long time to give a solution to its customer. That creates
bad impression.
Lack of coordination among employee resulting time killing of customer.

Opportunities:

Public confidence as a financially stable Bank.

Secured market minimizing risk factors.

MTBL get extra support from some organizations of the promoters and directors.

More commercial branches in the attractive places.

MTBL is recently planning to spread out their branches around the country.
 MTBL increases the rate of interest on FDR and BRICK by BRICK to raise
capital or deposit. By which the customers would like to deposit more money in
the bank.

Most of the branches are well decorated and having good work environment for
its employees.

As their employees are very experienced so it is able to provide better services to

its customer.

Threat:

A numbers of private commercial bank has already introduced on line banking

but The Mutual trust Bank yet not fully introduce these modern facilities
properly for its customer.
Some competitors are offering a high scale of salary than MTBL and it is a
threat that some officials are shifting to those Banks with confidential
information and Technique of MTBL.
Frequent Currency Devaluation: Frequent Taka Devaluation and foreign
exchange rate fluctuations and particularly Southeast Asian currency crisis
adversely affects the business globally.
Emergence of competitors: Due to high customer demand, it is expected that
more financial institutions will be introduced in this industry very shortly. And
we have already seen such cases in our country that lots of new banks are
coming in the scenario with new services. The MTBL should always be
prepared for the competition in the coming years.
Now a days interest rate of MTBL has been declined where as some other
banks are offering higher interest compare to MTBL.
 Chapter: Four

Recommendations
&
Conclusion

4.1 Recommendations:
 After this internship I can recommend the following thing in this branch of MTBL:

Salary scale and other facility should be increased as to stop switching

employee to other bank.
New computer and other machine should be set up for getting faster the
feedback.
Employees should be sent more for training as they can provide better service
to its customer
Random transfer of the employees should be stopped.

Employees should be more careful for their clients.

Accounts opening department should do their own scanning after opening the
new account. It should not send to the accounts department.

There is more people need to every branch to reduce time in credit section.

Number of ATM booth should be increased as customer can withdraw money

quickly.
Adequate number of employee should be ensured in the front desk to provide
faster service.
Making well coordination among employee for saving time of customer.

4.2 Conclusion:
After the completing of internship at MTBL. I would like to say that the bank is very fast
growing. They should take step to recover the problem immediately. MTBL want to
target the entire segment. Their service charge is lower than other private and
multinational bank. Their service charge is near to the nationalized commercial bank but
they provide better service than nationalized commercial bank. There Credit department
is very active and they are doing very well in this sector. In near future they will expand
their correspondent banking service.

4.3 Bibliography:

1.Annual Report of Mutual Trust Bank Ltd

2.www. Mutualtrustbank.com

3.Non Bank Financial Institutions (NBFIs), Annual Reports (ARs),

Financial Reports (FRs) 1999-2001.

4. Annual report of the Securities and Exchange Commission.

5.Bangladesh Bank Order, 1972, ( President Order No. 127 of 1972),

Department of Public Relations and Publications, Bangladesh Bank

6.Bank Company Law, 1991, Bangladesh Bank

7. www.Bangladesh-bank.org

8. www.secbd.org

9. www.centralbank.com