Loans Performance Evaluation of Mutual Trust Bank Ltd

8/11/2019 Loans Performance Evaluation of Mutual Trust Bank Ltd

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IIntroductionntroduction::

A bank is an establishment which makes to individuals such advantage of money as maybe 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 ersonalied

customer services and e,ansion of its clientele base.

$utual %rust Bank started its oeration on /ctober (0! 1 as a rivate sector bank with

an authoried caital of %k. 12222 million and aid u caital of %k.(22 million. %he

aid u caital of the bank amounted to %k. )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. 120.4 million. %he 5aital Adequacy 6atio 75A68 of the

bank was 11.9*: as on 'ecember *1! (223 as against the minimum requirement of :

indicating a sound caital base of bank.

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OOrigin of therigin of the RReport:eport:%he BBA internshi rogram is a required course for the students who are graduating

from the B6A5 Business ;chool from B6A5 $utual %rust Bank ltd." in 'hanmondi Branch for 1( weeks. 'uring this eriod #

learned how an organiation 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.

OObjective of thebjective of the SStudy: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.

SScope 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.

RResearchesearch MMethodologyethodology::;ome fundamental stes of research methodology have been adoted through my

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secialiation 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 organiational eole of $utual

%rust Bank &td.! 7'hanmondi Branch8 to conduct the research work.

SSourcesources ofof IInformationnformation::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

orking at different desks of the bank

ace to face conversation with other officer

ace to face conversation with client

Secondary Source:

Annual reort of $%B& (224.

iles and olders

;tatement affairs

Bank rate sheets

@rogress reort of Bank

ebsites

'ifferent circulars sent by Cead /ffice and Bangladesh Bank

;ome books on Banking

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LLimitationimitation::&imitation is a usual art of reort analysis. henever 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 centralied 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. or 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 organiational 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.

TThehe EEmergence ofmergence of MModernodern

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%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 rench 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. &oanswere 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.

MTBMTB at aat a GGlance:lance:%he 5omany was incororated on ;etember (! 1 under the 5omanies Act 10

as a ublic comany limited by shares for carrying out all kinds of banking activities with

Authoried 5aital of %k. 1!222!222!222 divided into 12!222!222 ordinary shares of

%k.122 each.



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%he 5omany was also issued 5ertificate for 5ommencement of Business on the same

day and was granted license on /ctober 2)! 1 by Bangladesh Bank under the Banking

5omanies Act 11 and started its banking oeration on /ctober (0! 1.

As envisaged in the $emorandum of Association and as licensed by Bangladesh Bank

under the rovisions of the Banking 5omanies Act 11! 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.

inanciers! @romoters! 5aitalists etc.

inancial #ntermediary ;ervices.

Any related inancial ;ervices.

%he 5omany 7Bank8 oerates through its Cead /ffice at 'haka and () branches. %he

5omanyGBank carries out international business through a Flobal Hetwork of oreign

5orresondent Banks

VVisionision:Asire to be the most admired financial institution in the country!

recognied 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.



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MMission:ission:

%o be the bank of 1st choice by creating e,cetional value for theirclients! investors and emloyees alike.



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CCompanyompany PProle:role:ame %$utual trust Bank &imited

Address %Cead /ffice

39 'ilkusha 5GA! 'haka

@hone?+ 414 21*9+02

a,?+ 992+(+)3 43(

I+mail?+ mailto?mtblbJbangla.net

;#%?+ $%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!1

)ead !ffice (ivision * (e&artment?

Division

5redit 'ivision 75ororate D 5onsumer8

%reasury D international 'ivision

inancial 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

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$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

adudged 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% 3.04 million 7(2238

Total "a&ital% (!110.)( million 7(2238

Total Asset%(3!(14. million 7(2238

(e&osits%((!(30.2) million 7(2238Loan * Advances%19!)1.)( million 7(2238

Total "ontin$ent Liabilities %!314.* 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)).3

million in 'ecember *1! (223 as comared to %k. (!0).9 million in

'ecember *1! (22) registering a growth of ((.0(:. %he investmentortfolio includes treasury bills! ero couon bonds! share of different

comanies! rie bonds etc. %he investment is made rimary to meet ;&6

requirement.

,eturn on Investment%3.2*: 7(2238



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,eturn on Assets%1.9(: 7(2238

Income from Investment%190.02 million 7(2238

International Trade%$%B& has designed %rade inance @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!()).( million

comared to L2)"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(!0*.(3 million

comared to revious year"s volume of %k. 9!912 reflecting a sound

growth of 03.(:. %he items handle in e,ort trade were ready+made

garments! ute! ute 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,changemarket 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 **.3: in (223. #n L23 total rofit

from treasury oeration was 14*.40 million comared to L2)"s rofit

1(.3 million.



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/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


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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. 341.* million as comared to %k. 409.(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 ;#%

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 enoy also thecredit 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

obective 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

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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 maor 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.



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MManagementanagement 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)


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Management !tructure "#ept$%Management !tructure "#ept$%


Chairman

Vice Chairman

Managing Director

Deputy Managing Director

Credit

(SEVP)

#nternatio

nal

Division

Mar$eting

Developm

t (EVP)

&eneral

Administra

tion

#'

(SAVP)

(EVP)

Accounts

(SAVP8

N@

AVP*

AVP+

AVP,

--#CE

AVP,

AVP+

AVP*

SAVP

--#CE

SP

AVP

--#CE

--#CE

--#CE

SAVP --#CE

--#CE

AVP

13


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Management !tructure "&nManagement !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 *

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##epartment inepartment in ##hanmondihanmondi

BBranch:ranch:

GGeneraleneral BBanking: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 obs 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 *

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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.

hen branch need money! this deartment collect money from rincial branch.

hen 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

1


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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:hen 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 1st 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 roects to assist tribal members! staff and directors

with accounting administration.

%he main function of Accounts is

Budget @rearation

@rocurement D @ayment

@ayroll

inancial ;tatements

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FForeignoreign EExchange:xchange:%he foreign e,change deartment transfers wherever one currencyis traded for another.

oreign 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 oreign 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.

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http://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Currency


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''obob ##escriptionescription::%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 ob descrition is given bellow=+

GGeneraleneral BBanking:-anking:-

Customer Service

Front desk job description

#nformation rovide to the customer about the roduct.

'ata entry

Account oening 7;aving Account! 5urrent Account! '6 etc.8

Account closing 7;aving Account! 5urrent Account! '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

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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 Adust

@ay 5li Adust

/B5 7/utward Bill for 5ollection8

ccount section job description

5heck the daily transfer.

%ransfer 7'6 interest rate transfer to the saving account8

'ata Intry

CCredit:-redit:- #nformation rovide to the customer about the roduct.

'ata entry

Account oening 7&oan account8



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%ye roosal

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CConsumeronsumer BBanking: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! i,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 oulariing consumer banking oerations and offer higher return to its

clients.

Consumer !anking Products are:

;aving 'eosit

5urrent 'eosit

i,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

estival ;aving @lan

$%B& 'ouble ;arver @lan

$%B& %rile ;arver @lan


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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/8 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/ 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 gaette officer and one coy hoto of the account holder signed by

officer7affidavit is not accetable8! organiational hoto #'.7commissioner

certificate! certificate from Faette officer is not accetable 8

Any kind of over writing must be signed by alicant in A/. 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.

http://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Savings_and_loan_associationhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Mutual_savings_bankhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Savings_and_loan_associationhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Mutual_savings_bankhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Cheque


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Sole proprietor" trust" partners#ip" $%Os:

,e1uirement%

5omleted A/ 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/8 comleted roerly.

Introduction: 'uly introduced by an e,isting accounting holder having

satisfactorily relationshi with ;tandard 5hartered Bank for at least si, months

http://www.mgg.com.au/MTWebsite/banking.html#%23


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@hotograh? %wo coy of account holder hotograh duly signed by introducer.

ominee: ;ignature of nominee on the A/ 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 gaette officer and one coy hoto of the account holder signed by

officer7affidavit is not accetable8! organiational hoto #'.7commissioner

certificate! certificate from Faette officer is not accetable 8

Any kind of over writing must be signed by alicant in A/. 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 ll up by the

oicer) required for all partner

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Fixed Deposit:

i,ed deosit is the same as a term or time deosit. $oneymay be laced with abank!

merchant bank! building society or credit unionfor 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 '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. or 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 ,ate1 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
http://www.anz.com/edna/dictionary.asp?action=content&content=deposithttp://www.anz.com/edna/dictionary.asp?action=content&content=moneyhttp://www.anz.com/edna/dictionary.asp?action=content&content=bankhttp://www.anz.com/edna/dictionary.asp?action=content&content=merchant_bankhttp://www.anz.com/edna/dictionary.asp?action=content&content=credit_unionhttp://www.anz.com/edna/dictionary.asp?action=content&content=interesthttp://www.anz.com/edna/dictionary.asp?action=content&content=deposithttp://www.anz.com/edna/dictionary.asp?action=content&content=moneyhttp://www.anz.com/edna/dictionary.asp?action=content&content=bankhttp://www.anz.com/edna/dictionary.asp?action=content&content=merchant_bankhttp://www.anz.com/edna/dictionary.asp?action=content&content=credit_unionhttp://www.anz.com/edna/dictionary.asp?action=content&content=interest


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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

###.Assi$nmentPoint.com*1


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)oan dvantage

%he customer can avail loan u to 2: 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. (!(!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.

or 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

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%he customer can avail loan u to 2: 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 0G4G 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.



###.Assi$nmentPoint.com**


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nominee7s8.

Deposit , IncomeMont+ly Installment : 3ears ; 3ears < 3ears

%K.1222 %K. )!(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.

ith a view to materialie 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! ashingG 'rying $achines and urniture"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



35/62

whichever is lower


36/62

+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 2: 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



37/62

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 2: 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



38/62

Festival Savings Plan:

$%B& estival ;aving lan has been designed to generate saving for religious festival. #t

will hel to reare and enoy a hay festival. %his lan includes!+

Iid+ul+itr

Iid+ul+Aha

'urga @ua

5hristmas 'ay

Buddha urnima

$ni%ue saving Plan:


39/62

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 inancing 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 inancing

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


oreign %rade

*


40/62

))n*linen*line BBanking: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.


41/62

!!+ift+ift !!ervice:ervice:%he ;ociety for orldwide #nterbank inancial %elecommunication or ;..#..%. is a

worldwide community. 4!922 financial institutions in (22 countries connected to one

another through ;#%.

#n their own word ;#% 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 ;#% 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 ;#% community and has started

its oeration from $arch (220. ith introduction of ;#%! $%B ensures its customers

the quickest and most secured financial transaction around the world.

%he ;#% address or B#5 of $utual %rust Bank is? MTBL B( ()



42/62

!!omeome ,,dditionaldditional !!ervice:ervice:

+*1Debit Card Service

A debit card is a lastic card which rovides an alternative ayment method to cashwhen

making urchases. #ts functionality is more similar to writing a check as the funds are

withdrawn directly from either the cardholder-sbank account7often referred to as a chec&

card8.

$%B& debit card is start from the *rdAugust. %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 authoried erson of the account holder. Ce or she can get this statement is

office working hour. #t is charged from customer"s account.

###.Assi$nmentPoint.com0(
http://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Bank_accounthttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Bank_account


43/62


44/62

)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 fromwhere 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 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.



45/62

CCredit 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.

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%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

inancing and 5onsumer inancing rogram in accordance with the rudential

regulations or the guidelines of Bangladesh Bank.

mall *nter+risemeans 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


47/62

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 orm

o 5harge 'ocument

o Inclosure 5hecklist

o 'ocument 5hecklist

o ;anction Advice ormat


;$I

Come &oan ;cheme

5onsumer &oan ;cheme

5onsumer inancing

;mall business &oan ;cheme

;mall Interrise inancing

Come 6eairG 6enovation

&oan ;cheme

Auto &oan ;cheme

04


48/62

5= branc+es +ave been desi$ned as SME Service "enter%

SL ame of Branc+ SL ame of Branc+

21 $ograara Branch 2 @abna Branch

2(


49/62

#nterest 6ate J 19.22: .a.

;ervice 5harge J 1.2: .a.

6isk ound 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 realied on accetance of

loan'ebt+Iquity or urchasing flatsGhouse?

i8 or laon uto %k. (2 &ac Q 4)?()

ii8 or loan above %k. (2 &ac Q 42?*2

or 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 ee J1.22: .a. of loan amount sanctioned

6isk und J1.22: or minimum %k.)22 shall be realied once at time of

disbursement of loan.

@ayment @eriod $a,imum ) years with * months grace eriod.



50/62

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

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CCredit :redit :A loan which is fully amortied 7or fully amortiing8 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 inance

Back to Back 7&oan

against &G58

Cash Credit(ypothecation)

;ecured /ver 'raft

&ease inancing

%erm &oan

5ontinuous &oan

"redit

Payment Against

Document (PDA)

)1


52/62

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.

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http://en.wikipedia.org/wiki/Leasehttp://en.wikipedia.org/wiki/Operating_leasehttp://en.wikipedia.org/wiki/Leasehttp://en.wikipedia.org/wiki/Operating_lease


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Export Finance:

I,ort inance interchangeably to mean the financing that an e,orting business requires

to hel them run their business. %he term OI,ort inancingO is used to mean Oforeign

buyer financingO! or simly Buyer inancing! 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?

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54/62

,ate of Interest on Lendin$%

SL "ate$ories E0istin$ 7Mid ,ates21 Agriculture 9.22:

2( %erms &oan to &arge D $edium ;cale #ndustries 1).22:2* orking 5aital 1).22:

20 I,ort inance 7@5! I558 4.22: 7i,ed8

2) 5ommercial &ending including #mort inance 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:

2 &ease inance 1).)2:

12 &oanG;/' against '6 of the Bank (: above 7i,ed8 '6 rate

11 ;/' against '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 rom 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.

PProcess )frocess )f GGettingetting --oan:oan:

###.Assi$nmentPoint.comApply !or 0oan

(1ith the !acility that you

)0


55/62

#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 givenParty gives the

pen a loan account

(y an$)

Dis5ursement

))


56/62

//et+ork .et+ork . !!oft+are inoft+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 lora software and for clearing urose

they use H#KA;C software.

Flora So/tware? lora is in+house banking software. Almost every bank in Bangladesh

uses this software. $%B& bought this software from lora &td. #ts requirement is

#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 o,@ro database rogram. All

banks are using this software for clearing urose. %his oeration manual describes the 1st

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 becauseof this 'igital 'ata Hetwork link interrution.



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@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.



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11ecommendation .ecommendation .

CConclusion:onclusion:Observation and Recommendation for

Customer service:

$%B& should include more differentiate roduct in their consumer

roduct= like+ oreign 5urrency 'eosit Account! 6esident oreign

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 organie 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.

###.Assi$nmentPoint.com)


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or the advertising the roduct! they used normal staffs. %hey should

aoint new emloyees for this segment. hen 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 minimie.

&oan facility should be increased.

&oan rocedure should be clear and systematic.



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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

organiation deends on its intake of qualified eole and develoing them to erform

their best as a team! as well as individually.



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Loans Performance Evaluation of Mutual Trust Bank Ltd

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