An Internship Report

On
“General Banking Activities of
Mutual Trust Bank Ltd. MTB Centre Corporate Branch’’

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 Internship Report

On

“General Banking Activities of

Mutual Trust Bank Ltd. MTB Centre Corporate Branch’’

Prepared For

The Chairman
Fourth Year Exam Committee
Dept. of Finance and Banking
Jahangirnagar University

Prepared By

Keya Rahman
BBA Program, Session: 2014-2015
Exam Roll: 151999
Dept. of Finance and Banking

Date of Submission: April 3, 2019

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April 3, 2019.

The Chairman,
Fourth year exam committee,
Dept. of Finance and Banking,
Jahangirnagar University,
Savar, Dhaka-1342.
Through: Asma Ahmed, Internship program supervisor.

Subject: Submission of Internship Report on “General Banking Activities of Mutual

Trust Bank Ltd. MTB Centre Corporate Branch.”

Dear Sir,

With due respect, I would like to thank you for assisting me to prepare the internship report.
Here is the internship report on “General Banking Activities of Mutual Trust Bank Limited,
MTB Centre Corporate Branch”- the prerequisite of the three-month long internship program.
The internship program has provided me with an opportunity to have an exposure to the
working environment in General banking of the MTBL, MTB Centre Corporate Branch. I
have acquired a sound knowledge and understanding on the basic general banking operation
of the Bank. I hope this knowledge & experience will help me in many diverse ways to
perform my responsibility in an effective manner.
This report contains a working procedure of General Banking Department which is based on
its operational activities. I will be grateful and pleased as well having any suggestions,
directions and/or recommendations for further improvement of the report.
Thanking you for your kind cooperation in accomplishing my task given by you.

Sincerely Yours,
………………….
Keya Rahman
Session: 2014-2015, BBA Program
Exam Roll: 151999
Dept. of Finance and Banking
Jahangirnagar University.
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 Acknowledgement

I feel immensely pleased to have an opportunity, on the very occasion of submitting my

internship report, to thank a number of individuals for their support, co-operation and
direction that have significantly contributed to the preparation of the report.

First of all, I would like to thank my Almighty Allah, who bestowed me the capability of
successful completion of my internship report and the internship as well.

My heartiest gratitude goes to my branch supervisor Mohammad Hasidur Rahman Sabuj,

Customer Service Manager, Mrs. Shifat Farhana Khan, Mrs. Umme Kulsum and also Sadia
Rahman in MTB Centre Corporate Branch, Dhaka who have been so kind and helpful to
me during my Internship period. They tried to help me in every possible way even though
they used to remain busy all through the day. Their contribution towards this report is worth
than ever. It was a great honor to work with such kind, hard-working and helpful officers.

I am deeply indebted to my supervisor Asma Ahmed, Lecturer of the department of Finance

and Banking, for her whole-hearted supervision to me. Without her supportive hand and
recommendations, it would be difficult for me to complete this Report.

So, I would again thank all the people who assisted me to complete this report.

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Table of Contents
Executive Summary...............................................................................................................................vi
CHAPTER-1.............................................................................................................................................1
Background of the Study.......................................................................................................................1
1.1: Introduction....................................................................................................................................2
1.2: Origin of the report.........................................................................................................................2
1.3: Objectives of the report..............................................................................................................3
1.4: Methodology of the study..........................................................................................................3
1.4.1: Data Collection Method.......................................................................................................3
1.4.2: Sources of data....................................................................................................................4
1.5: Scope of the report.....................................................................................................................4
1.6: Limitations of the study..............................................................................................................5
CHAPTER-2.............................................................................................................................................6
Organizational Overview.......................................................................................................................6
2.1 About MTBL.................................................................................................................................7
2.2 Goals and Objectives of MTBL.....................................................................................................7
2.3 Vision and Mission of MTBL.........................................................................................................8
2.3.1 Vision....................................................................................................................................8
2.3.2 Mission.................................................................................................................................8
2.4 Banking Products and Services....................................................................................................8
2.5 CSR of Mutual Trust Bank..........................................................................................................11
Chapter-3.............................................................................................................................................13
General Banking Activities of MTB Centre Corporate Branch, MTBL...................................................13
3.1 Introduction...............................................................................................................................14
3.2 Front Desk Section:....................................................................................................................14
3.2.1 Opening of Account:...............................................................................................................15
3.2.2 Issuance of Cheque book........................................................................................................22
3.2.3 Issuance of Deposit Slip..........................................................................................................23
3.2.4 Transfer of Fund:....................................................................................................................23
3.2.5 Account Services.....................................................................................................................23
3.2.6 Closing of Account..................................................................................................................23
3.3 Cash Section...............................................................................................................................24
3.3.1 Process of Cash Payment:...................................................................................................24
3.3.2 Cash Receipt Procedure:.....................................................................................................25
3.4 Accounts Section:......................................................................................................................26
3.5 Other Banking Services that provided by General Banking Section are:....................................27

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CHAPTER-4...........................................................................................................................................31
Financial Performance Analysis Of......................................................................................................31
Mutual Trust Bank Ltd.........................................................................................................................31
4 Financial Analysis:.........................................................................................................................32
4.1 Ratio Analysis.............................................................................................................................32
4.1.1: Liquidity ratio.....................................................................................................................33
4.1.2: Debt management ratios...................................................................................................34
4.1.3: Profitability ratios..............................................................................................................35
CHAPTER-5...........................................................................................................................................39
My Internship Experience at MTB Centre Corporate Branch, Mutual Trust Bank Ltd.........................39
5.1 My Internship Experience at MTBL............................................................................................40
5.2 Job Responsibilities....................................................................................................................40
5.3 My Daily Work Routine..............................................................................................................41
5.4 My activities in Account Opening Department..........................................................................41
5.4.3 Issuing Payment Order slip:....................................................................................................42
5.4.4 Issue of the Cheque Book:......................................................................................................42
5.4.5 KYC Form completion:............................................................................................................43
Chapter-6.............................................................................................................................................44
Findings, Recommendations and Conclusion......................................................................................44
6.1 Findings......................................................................................................................................45
6.2 Recommendation......................................................................................................................46
6.2 Conclusions................................................................................................................................47
References.............................................................................................................................................1
Appendix...............................................................................................................................................2

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 List of Figures

Serial No: Figures Page No:

1 Organogram of Mutual Trust Bank Ltd. 12
2 Current Ratio 33
3 Debt to Equity Ratio 34
4 Total debt to Total Asset Ratio 35
5 Return on Asset Ratio 36
6 Return on Equity Ratio 37
7 Net Profit Margin Ratio 37

Acronyms

IBB – Institute of Bankers Bangladesh

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BAB – Bangladesh Association of Banks

BAFEDA – Bangladesh Foreign Exchange Dealer Association

BIBM – Bangladesh Institute of Bank Management

BAPLC – Bangladesh Association of Publicly Listed Companies
MCCI – Metropolitan Chamber of Commerce and Industry
ICCB – International Chamber of Commerce
DSE – Dhaka Stock Exchange
DCCI – Dhaka Chamber of Commerce and Industry
FBCCI – Federation of Bangladesh Chambers of Commerce and Industry
AmCham – American Chamber of Commerce in Bangladesh
PDBL – Primary Dealers Bangladesh Limited
DIBOR – Dublin Inter-Bank Offer Rate
UCIC – Unique Customer Identification Code
FAVP- First Assistant Vice President
SAVP- Senior Assistant Vice President
AVP- Assistant Vice President

Executive Summary

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In our country, banking sector is modernizing and expanding its activities day by day. The
banking system is becoming faster, easier and wider. Mutual Trust Bank LTD is a third-
generation private bank in Bangladesh. It has started its journey as a private commercial bank
on 29 September, 1999.

The bank operates its financial activities through its Head Office situated at Gulshan, Dhaka
and 114 branches.

The whole working area of a modern bank can be divided mainly into four Sections, such as -
1) General Banking Section, 2) Cash Section, 3) Loans & Advance Section and 4) Foreign
Trade Section. In this report my discussion will be focused mainly on General Banking
Section.

General Banking is the starting point of all the banking operations. This department provides
day-to-day services to the customers. MTB Centre Corporate Branch is one of the most
profitable branches of MTBL. In this branch various activities are carried out by general
banking department, such as- opening of an account, issuing of cheque books, closing of an
account, stopping payment & dishonoring of a cheque, fund transfer, bills collection, cash
payment and cash receipt, issue payment orders etc.

In this report, I have tried to demonstrate and analyze the general banking activities of MTB
Centre Corporate Branch, Mutual Trust Bank Ltd. from my three months working
experiences in this branch. I have also tried to make an analysis on the financial performance
of Mutual Trust Bank Ltd. for five years. From the financial performance analysis it can be
said that Mutual Trust Bank Ltd. is a profitable bank as the profit of this bank is increasing
gradually.

This report has been prepared as the degree prerequisites of BBA program at the department
of Finance and Banking, Jahangirnagar University. This report focuses three months working
experiences in MTB Centre Corporate Branch, Mutual Trust Bank Ltd.

The report contains six (6) chapters. The first chapter of the report describes the origin,
objectives, methods and sources, scopes and limitations of the report. The second chapter
contains the overview and products and services of MTBL. Chapter three contains general
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banking activities of MTBL and chapter four describes the performance analysis of MTB.
Chapter five contains the job experience over the three-month long internship period and
chapter six contains findings, recommendations and the overall conclusion.

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 CHAPTER-1
Background of the Study

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1.1: Introduction

A bank is a financial institution that collects deposits from the public and creates credit. It is a
very old institution that is contributing toward the development of any economy and is treated
as an important service industry in the modern world. Economic history shows that
development has started everywhere with the banking system and its contribution towards
financial development of a country is the highest in the initial stage. Modern banks play an
important part in promoting economic development of a country.

Bank plays a vital role in the economy by providing means of payment and mobilizing
resources. Bank is the most important financial institution in the economic development of a
country depends on the development of banking sector.
There are different types of banks, commercial bank, investment banks, Islamic banks, co-
operative banks etc.

Mutual Trust Bank is a commercial private bank whose main objective is the mobilization of
fund from surplus unit to deficit unit. In the process of acceptance of deposits and provision
of loan, bank creates money. These characteristics feature sets Bank apart from other
financial institution. I have done my internship in the general banking department in MTB
Centre Corporate Branch, Mutual Trust Bank Ltd. which helps me to know more about bank.

1.2: Origin of the report

Internship program is an essential part for every business administration student because it
helps him/her to be familiar with the real-life job experience. A bank is one of the most
important financial intermediaries; so, as a student of Finance and Banking department I have
selected ‘’Mutual Trust Bank Limited (MTBL)’’ which is one of the most leading banks in
the new banking arena, to do my internship program.

MTBL arranges this internship program for the students to gather practical knowledge about
banking activities. This is followed by practical experiences in the branches of MTBL. My
topic for this internship report is “General Banking Activities’’ placed in the MTB Centre
Corporate Branch of MTBL. This topic is selected with able guidance of my supervisor,
Asma Ahmed, lecturer of dept. of Finance and Banking. I have prepared this report on the

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basis of my three months internship program in MTB Centre Corporate Branch, Mutual Trust
Bank Ltd.

1.3: Objectives of the report

The general objective of the report is to prepare and submit a report on the topic “General
Banking Activities’’ of Mutual Trust Bank Ltd. MTB Centre Corporate Branch.

There are some other objectives:

• To know the general banking activities of the bank.

• Getting idea about the products and services offered by the bank.

• To know the background of MTBL

• To understand the entire branch banking procedures.

• To know the work environment of the bank.

• To relate the theoretical learning with the real-life situation.

1.4: Methodology of the study

The report is descriptive in nature. For the procedure of different banking operations, I had
observed the operations and worked with the different officers of the branch. The data for the
overview of the bank part is collected from the website and annual report of the bank. For the
analysis part, data have been collected from different statements and the annual report of the
bank.

1.4.1: Data Collection Method

This report is prepared based on data collection from two sources i.e. Primary Sources and
Secondary Sources. But majority of information was collected from Secondary Sources.

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1.4.2: Sources of data

1.4.2.1 Primary Data

• Practical banking work experience.

• Guidelines from the officers and executives of MTB Centre Corporate Branch.
• Face to face conversation with the customers.
• Discussion with the employees.

1.4.2.1 Secondary Data

• Data from MTBL website.

• Study on annual reports of Mutual Trust Bank Ltd.
• Different journal and magazine regarding Mutual Trust Bank Ltd.
• Various publications on banking operations.
• Study on financial statements of the bank.

1.5: Scope of the report

To prepare this report and to do the analysis for my report I got much facilities in MTB
Centre Corporate Branch of MTBL. There were:

• Separate desk for me.

• Many helpful employees who always help me by giving me a lot of information.
• Assistance of the bank branch supervisor at any time.
• Internet and bank website are very much upgraded.
• And last but not the least, my supervisor Asma Ahmed was very helpful and guide me
in every possible way to prepare this report.

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1.6: Limitations of the study

• Legal obligation

Due to some legal obligation and business secrecy the bank was reluctant to provide some
sensitive data. Thus, this study limits only on the available published data and certain
degree of formal and informal interview with the customers.

• Lack of supervision by the bank officers

Sometimes the officers of the branch cannot help me as they were always busy with their
daily working activities. They were not able to give me much time apart from their daily
working activities.

• Lack of latest data:

As the annual report of 2018 is not published yet so it was difficult for me to find latest
information about the bank.

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 CHAPTER-2
Organizational Overview

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2.1 About MTBL

Mutual Trust Bank Limited was incorporated as a Public Limited Company in 1999, under
the Companies Act 1994 with an Authorized Share Capital of BDT 3,800,000,000 divided
into 38,000,000 ordinary shares of BDT 100 each. At present, the Authorized Share Capital
of the company is BDT 10,000,000,000 divided into 1,000,000,000 ordinary shares of BDT
10 each. Mutual Trust Bank also got the 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.

Mutual Trust Bank Limited, together with its subsidiaries, administers several commercial
banking services in Bangladesh. It has 114 Branches and the Head Office is in Gulshan – 1.
MTB has memberships with IBB, BAB, BAFEDA, BIBM, BAPLC, MCCI, ICCB, DSE,
DCCI, FBCCI, AmCham, and PDBL.

2.2 Goals and Objectives of MTBL

The main objective of the Mutual Trust Bank Limited (MTBL) is to offer an interest free
banking system in the financial market. Apart from that, the bank started its operation in the
country with a view to realizing the following objectives:

• To ensure inflow of funds at combination of least possible cost

• To maintain a discreet credit policy
• To enhance versatility and diversification through the penetration of new market
segments, thereby fulfillment unmet needs
• To extend financial assistance to the citizens, living at dispersed locations by
expanding the network of branches
• To practice stronger IT-driven initiatives that will meet the challenges and
requirements of the banks and its clients
• To improve administrative and organizational structures in order to prepare the
platform for the best practices of corporate government.
• To enrich the banking sector with improved awareness on corporate social
responsibility

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 • To provide extensive career opportunities through competitive pay and benefits and a
flexible environment.
• To establish a partnership relationship with customers and to eliminate the idea of the
debtor-creditor relationship of traditional banks.
• To establish welfare-oriented banking system.

2.3 Vision and Mission of MTBL

2.3.1 Vision
Mutual Trust Bank’s vision is based on a philosophy known as MTB3V. MTB envision to be:
• One of the best performing banks in Bangladesh
• The bank of choice
• A truly world-class bank

2.3.2 Mission

MTB aspires 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 Banking Products and Services

Mutual trust bank provides the following products and services:

• SME Banking
• Wholesale Banking
• Privilege Banking
• NRB Banking
• Treasury Options
• Retail Banking

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SME Banking

MTB started its Small and Medium Enterprise banking in 2017 and is one of the leading
SME banks in the country. They offer SME services which includes SME Loan Products and
SME Deposit Products. SME Loan Products are MTB Small Business Loan (SBL), MTB
Digoon, Bhagyobati, Microfinance, Krishi, Mousumi, Green Energy Loan, Gunabati,
Krishijat, Light Engineering, IT Genius and Youth Line. SME Deposit Products are MTB
Probaho and MTB Buniad.

Wholesale Banking

MTB works on term finance, working capital finance and cash management unit in wholesale
banking. Term finance services include Project Finance, Financer for Importing Capital
Machinery, Lease Finance, House Building Finance, Term Loan to NBFI and Term Lending.
Working Capital Finance includes Secured Overdraft, Cash Credit, and Cash against
Document, Short Term Loan, Loan General and Time Loan. Cash Management Unit includes
MTB Nationwide Collection Service; Web based Banking Services, Payments Solutions,
Capital Market Services, High Value Account Services, Motor Vehicle Fee Collection
Solution and MTB Tuition Fees Collection Service. They also provide Trade Finance
containing Back to Back L/C, Export Bill Discounting, Secured Overdraft and Packing
Credit.

Privilege Banking

MTB started their Privilege Banking service in 2010 in order to serve the lifestyle of
privilege banking customers. The privileges that the customers get are queue less banking in
a relaxed environment where customers are served by respective dedicated relationship
managers along with complimentary airport limousine service, protocol from airport service,
health-checkups supports at well-known hospitals, discounts at exclusive privilege partner
outlets for dining, shopping, traveling, etc. which enable to live the life in the manner that
their hearts desire.

Privileged Benefits:
 Waiver of fees on various products and services
 Higher ATM withdrawal limit

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  Free Internet Banking
 Free debit card
 Discount on locker service.
 Special debit card and Cheque Book
 Composite statements
 International Credit cards

NRB Banking

MTB provides a wide range of deposit products in local currency for the NRBs who living
abroad and want to save their money to use in their future and also to maintain their families.
NRB Banking products are NRB Savings Account, NRB Deposit Pension Scheme and NRB
Fixed Deposit Account.

Treasury Options

MTB Treasury gives refined solutions supported by a large sales force and a state of the art
dealing room in Bangladesh. It provides services like – Money Market, Corporate Sales,
Foreign Exchange, etc.

Retail Banking

MTB Retail Banking provides a wide range of simple different services for their respective
clients and customers. The services are Regular Savings, Current Account, Ruby, Inspire,
Brick by Brick, Millionaire Plan, Senior, Junior, Care, Shanchay, Fixed Deposit, Double
Saver, Education Plan, Monthly Benefit Plan, Kotipati and MTB Gift Cheque.

Deposit Products
• Regular savings

• MTB Brick by Brick

• MTB Senior

• MTB Care

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 • Current Account

• Fixed Deposit

• MTB Double Saver

• Monthly Benefit Plan

• MTB Education Plan

• MTB Millionaire Plan

• MTB Kotipati

• MTB Gift Cheque

2.5 CSR of Mutual Trust Bank

Mutual Trust Bank is also involved in CSR activities which includes the education sector of
the needy people in the rural parts of Bangladesh. They also focus on the health of nutrition
of the people and helping any humanitarian and disaster crisis relief, cultural, sports etc. in
Bangladesh. There are several activities that MTB has provided for example donation of
blankets in North Bengal, blood donation, sponsored South Asian Games Dhaka, donated to
Prime Minister’s relief camp etc.

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2.6 Organogram of Mutual Trust Bank Ltd:

Board of Directors

Chairman

Managing Director

Deputy Managing Deputy Managing Director

Director (operational) (Credit Risk & Management)

SVP SVP EVP (Sales) SAVP (Audit &

FAVP
(Financial (Operationa Risk
Division) l) Management)

Vice Senior Vice

Vice
President President
President VP
(Person
al
FAVP FAVP Vice President Rankin

AVP AVP SAVP

FAVP

Figure-1: Organ gram of Mutual Trust Bank Ltd.

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 Chapter-3
General Banking Activities of MTB Centre Corporate Branch,
MTBL

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3.1 Introduction

: Banking financial institution is work as a mediator between two parties: borrower and
lender. This mediation is done by taking money from various forms of lenders and lending
them to other several forms of potential investors which is mainly done by general banking
section of a bank. General Banking is the starting point of all the banking operations. It is the
department which provides day-to-day services to the customers. Every day it receives
deposits from the customers and meets their demand for cash by honoring cheque. It opens
new accounts, recruit funds, issue bank drafts and pay orders, etc. Different forms of accounts
and special saving schemes under General Banking are provided by the bank.

Everyday transaction of banking system is the main operation which is handled by General
Banking sector. It has to meet the customers demand for cash and to receive investment from
them. It opens new accounts, forwards customer’s money from one place to another through
issuing bank draft, payment order, collects all bills like local cheque collection, inward and
outward bills collection for customers. In MTB Centre Corporate Branch, departments under
General Banking section are

• Front Desk Section

• Cash Section
• Accounts Section
• Other Customer Service Section

3.2 Front Desk Section

Front desk section is the most important section in general banking department. In MTB
Centre Corporate Branch Front Desk provides various customer services like account
opening, accepting deposit, closing of an account, issuing cheque book, fund transfer, various
account services like changing address, phone number etc.

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3.2.1 Opening of Account:

Responsibility of the Customer Service starts with opening of new account in the name of
new customer. This is the starting point of the client bank relationship. By opening an
account, the bank bridge it’s customer to avail the facilities provided by the bank and
mobilizes funds for investment. Many rules and regulations are followed and various
documents are taken while opening an account. There are different types of accounts that are
offered by front desk section in MTB Centre Corporate Branch:

Current Account:
A current account is mainly open for carrying out day-to-day business transactions. This
account is generally opened by the businessmen, government and semi-government
organizations. A businessmen can access his account anytime, anywhere with the regular
current account in any MTB branch. No interest is given upon the deposited money in this
account.

Features and Benefits:

• Wide network of branches
• There are facilities of Internet Banking and SMS Banking
• Cheque-book facility
• Collect foreign remittance
• Transfer of fund from one branch to another by Demand Draft /Telegraphic Transfer
Online banking service.

Regular Savings Account:

Individuals for savings purposes open this type of account. This deposit is primarily for small
scale savers. Based on deposited amount interest is given here. Interest on these accounts
calculated and accrued monthly and credited to the account half-yearly. It is an easy-to-
operate savings account that allows ones to issue cheques, draw Demand Drafts and withdraw
cash, Checkup one’s balances from the comfort of his/hers home or office through Internet
Banking and SMS banking.

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Features and Benefits:
• Wide network of branches
• Access to largest ATM fleet of the country

• Bank conveniently with facilities like Internet Banking and SMS Banking

• Cheque-book facility

• Opportunity to apply for safe deposit locker facility

• Collect foreign remittance in both T.C. & Taka draft.

• Transfer of fund from one branch to another by Demand Draft /Telegraphic Transfer

• Online banking service an appropriate introduction is required for opening the

account.

• A depositor may withdraw money from his / her account.

• An introducer (who has a savings account with MTB) must needed in the opening of a
new savings account to introduce the account.

Fixed Deposit:
When a customer wants long term investment and wish to earn higher interest on their
savings then they can invest their money on fixed deposit scheme. It is a deposit scheme
which is payable at a fixed date. Interest rate on fixed deposit is varied according to periods.
For one and two months interest rate is 4.00%. For three months interest rate is 6.50% and for
6 months rate is 7.00%. For 9 months interest rate is 7.50% and for 1 year rate is 8.00% and
above 2 years interest rate is 8.25%.

There are some special schemes offered by Mutual Trust Bank Ltd which are also provided
by front desk department. I briefly discussed these schemes here:

MTB Brick by Brick

MTB Brick by Brick is a monthly savings plan which builds up over the years and provides a
lump sum amount at maturity. It is a monthly deposit scheme. The savings periods are 3, 5, 8
and 10 years. Monthly installments are Tk. 250/=, 500/=, 1,000/=, 2,000/=, 5,000/= and
thereafter in multiples of Tk.500. There are some terms and conditions that the customers
have to meet to open a Brick by Brick account.

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MTB Double Saver
This is a onetime Fixed Deposit scheme where the deposit doubles in 7(seven) years 6(six)
months. The minimum deposit of this scheme is BDT 50,000.00 and there is no limit for
maximum amount to open an account. The rate of interest on this scheme is 9.46%. If the
depositor wishes to withdraw the deposited amount before maturity, the interest will be paid
at the prevailing MTB Regular Savings interest rate.

Monthly Benefit Plan

In this plan a depositor will get monthly interest against deposited amount on a regular basis.
The tenure of this plan will be 1(one) year to 5(five) years and the interest rate on this scheme
is 8.40%. The customer has to deposit the minimum amount of BDT 100,000.00 in the time
of opening the account. The date, on which the deposit is received, the interest will be paid on
the same date of the next month in the depositor’s Savings/Current account. The customer
may avail loan up to 90% of the deposited amount.

MTB Millionaire Plan

It is a monthly deposit scheme which will make a client millionaire after a certain period. The
tenure of this scheme is 6/8/10/12/15/20 years. The rate of interest for 6 years is 8.00%, for 8
years is 8.10% and for above 8 years is 8.25%. Installment may be deposited within 20th of
every month by cash/cheque or from the savings account of the customer if the customer
gives the link. If the depositor fails to pay 3 consecutive installments, the account will be
closed and net payable amount will be transferred to link account (if any). Late fees @ 2% of
installment amount will be charged per month for failure of paying the installment. The
customer may avail loan up to 90% of the payable amount. The customer can also avail credit
card limit up to 80% of the payable amount.

MTB Kotipati

It is a monthly deposit scheme which will make a client kotipati after a certain period. The
tenure of this scheme is 4/5/6/8/10/12/15 years. The interest rate for 4 to 6 years is 8.00% and
for 8 years is 8.10% and above 10 years is 8.25%. And the monthly installment is also varied
according to years. Installment may be deposited within 20th of every month by cash/cheque
or under the depositor’s instruction from another deposit account. If the depositor fails to pay
3 consecutive installments, the account will be closed and net payable amount will be

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transferred to link account (if any). Late fees @ 2% of installment amount or BDT 200.00
whichever is higher will be charged per month for failure to deposit the installment in time.
The customer may avail loan up to 90% of the deposited amount.

MTB Senior
MTB Senior has been designed keeping in mind the fact that a senior citizen’s banking
requirements are wholly different and deserve special attention.

Eligibility:

• Must be a citizen of Bangladesh

• Age 60 and above

Features:

• Lifetime free Debit Card

• Free internet banking

• Attractive discount on locker charge

• Free cheque books

• Interest calculated on daily basis and paid monthly

• Unlimited transactions

• Online banking facility across MTB branches and access to largest ATM network

MTB Care
MTB Care, a unique proposition of MTB, is a savings product for children with special
needs. Through this product, special needs children will get assistance from branches in
opening and maintaining the account at a lower cost compared to other savings products. This
is also MTB’s commitment towards helping special children to have access to banking
services. The interest rate on this deposit is 3.85% on any amount.

Eligibility:

Any Bangladeshi with photo ID document as applicable for savings account. The account
will always require a guardian who will operate the account along with the account holder,
when he/she has no mental capacity to sign.

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Features:

• Interest calculated on monthly average balance.

• Interest is credited to account on monthly basis.

• No account maintenance fee.

• First 3 cheque books free (10 pages per book)

MTB Gift Cheque

A gift that grows with time. MTB Gift cheque users have the unique opportunity to choose
their gift, whenever they wish. Purchasers save time and receivers have the option to buy
something they require.MTB Gift Cheque can be exchanged for money anytime, at any MTB
branch in Bangladesh.

Benefits

MTB account holders can purchase MTB Gift Cheque at any time

• Gift Cheque holders can encash the cheque from any MTB Branch in Bangladesh

• No document is required for purchase of gift cheque

• No service charge is applicable

Formalities for Opening an Account:

For opening the account there are need some requirements which I have learned in my
internship program. The first-hand requirements are:

• Application on the prescribed form

• Introduction of the applicant

• Two copies of passport size recent photograph with attested by the introducer

• Photocopy of NID or passport or driving license.

At first Front Desk employee wants to know whether the customer has introducer to open the
account or not? If yes then give him / her printed Account Opening Form along with
Specimen Signature Card, Customer Transaction Profile Form and Information form on

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Money Laundering (Positive Pay). After that, request the customer to fill up the form duly
and submit the form with required documents.

The steps that taken at the time of Opening an Account which I have learned are given
below:
Before opening of a Current or Savings Account, the following formalities must be
completed:

• To open an account, at first the account holder has to apply for opening an account by
filling up account opening form. Account opening form consists of the Name of the
Branch, Type of Account, Name of the Applicant(s), Present Address, Permanent
Address, NID, E-TIN, Date of Birth, Nationality, Occupation, estimated Monthly
Income, Nominee(s), Initial Deposit, Specimen signature(s) of the Applicant(s),
Introducer’s information, etc. Moreover, have to fill up KYC form: This form has
been introduced by the Bangladesh Bank to prevent money laundering. KYC form
helps to assess the customer. Clear instructions with regard to operations are found in
KYC. If the transaction of a customer is found suspicious or not matched with the
KYC then Bank Branch will report it to Bangladesh Bank.

• Then the account holder has to signature on the specimen signature card which has to
be attested by the introducer. Moreover, two copies of passport size photograph also
has to be attested by the introducer.

• The prospective customer should be properly introduced by the followings:

• An existing customer of the Bank.

• A respectable person of the locality who is well known to the Manager or authorized
officer.

• The authorized officers will analyze the introduction and examine the documents have
submitted. Then the concerned authority will allocate a number for the new account.

• The customer then deposits the ‘Initial Deposit’ by filling up a deposit slip.
• After depositing the cash, one cheque book and Pay-in-slip is issued.
• Then the account is considered to be opened.
MTB Centre Corporate Branch maintains all of its accounts in computer; they also follow
a register of all accounts before opening accounts. After depositing the initial deposit,

Page | 20
 branch records it in the system. Then it distributes all relevant papers to respective
department.

Documents required to open account:

• Personal Account (Individual / Joint):
• Three copies of passport size photo (attested by Introducer)
• One copy of passport size photo of Nominee (attested by Applicant)
• Photocopy of National ID card / Passport / Driving License of the applicant
and nominee as well.
• Proprietorship Business Account:
• Three copies of passport size photo (attested by Introducer)
• National ID card / Passport / Driving License of applicant.
• Trade License
• TIN and VAT Certificate
• Partnership Business Account:
• One copy of passport size photo of each partners (attested by Introducer)
• One copy of passport size Photo of each Signatories
• National ID card / Passport / Driving License / Commissioner / Chairman
Certificate (any two) of each partner
• Trade License
• Partnership Deed (must be registered)
• TIN and VAT Certificate in the name of Business
• Board Resolution (Original Copy)
• Private Ltd. Company Business Account:
• One copy of passport size photo of each Directors (attested by Introducer)
• One copy of passport size photo of each signatories (attested by Introducer)
• National ID card / Passport / Driving License / Commissioner / Chairman
Certificate (any two) of each Shareholders
• Trade License
• Memorandum of association

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 • Board Resolution (Original Copy)
• TIN and VAT Certificate in the name of Business
• Public Ltd. Company Business Account:
• One copy of passport size photo of each Directors (attested by Introducer)
• One copy of passport size photo of each signatories (attested by Introducer)
• National ID card / Passport / Driving License of each Shareholders
• Trade License
• Memorandum of association
• Articles of Association
• Board Resolution (Original Copy)
• TIN and VAT Certificate in the name of Business
• Joint Venture Company Business Account:
• One copy of passport size photo of each Directors (attested by Introducer)
• One copy of passport size photo of each signatories (attested by Introducer)
• National ID card / Passport / Driving License of each Shareholders
• Trade License photocopy of each individuals
• Joint Venture Deed (must be registered)
• Board Resolution (Original Copy)

3.2.2 Issuance of Cheque book

After opening of an account the front desk employee provides a cheque book to the
customers so that he/she can withdraw money whenever they needed. A cheque book
contains 10, 25, 50 or more pages according to the types of account. The customer has to fill
up a requisition slip for a cheque book where they have to give account number, address and
signature. Then a new cheque book will be issued. In MTB Centre Corporate Branch they
maintain a cheque book register where they entry the name, account number of the client and
cheque book serial number.

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3.2.3 Issuance of Deposit Slip

If a customer wants to deposit money, he/she has to collect a Deposit Slip from the front desk
of the bank. There is no need for requisition for a deposit slip. Then they have to fill up the
deposit slip with account number, date and amount of the money they want to deposit and
have to give signature.

3.2.4 Transfer of Fund:

Front desk employees also do the task of transfer of funds. If a customer wants to transfer
fund from his/her account to another account, he/she needs to fill up a fund transfer form
which is called additional service form. The customer has to provide the account number
from which he/she wants to transfer the fund and the account number to which he/she wants
to transfer the fund.

3.2.5 Account Services

Front desk employees provide various types of services after opening of an account which is
called account services. These services are changing of address, phone number, email id etc.
If a customer wants to change his/her address, mobile number, email etc. he/she has to fill up
the account service form and submit to the front desk.

3.2.6 Closing of Account

If a customer wants, an account can be closed. After receiving an application from the
customer to close an account, the following procedure is followed by a banker/employee. The
customer should be asked to draw the final cheque for the amount standing to the credit of his
/ her account less the amount of closing and other incidental charges and surrender the
unused cheque leaves, the account should be debited for the account closing charges etc., and
an authorized officer of the Bank should destroy unused cheque leaves.

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A bank employee can also close the account of his customer or stop the operation of the
account under following considerable circumstances:
• Death of the Customer.
• Customer’s insanity and insolvency.
• Specific charge for fraud forgery or counterfeit.
• Stop payment of cheque.
• A banker can stop payment of cheque of his customer under following considerable
circumstances.
• Order from the court.
• The officer/employee will see the condition of account and verify everything.

3.3 Cash Section

A Cash Department is the most vital and sensitive section of the branch as it deals with all
kinds of cash transactions. This department starts the day with cash in vault. Each day some
cash that is opening cash balance are transferred to the cash officers from the Cash Vault. Net
figure of the Cash Receipts and Payments are added to the opening cash balance. The figure
is called Closing Balance. This Closing Balance is then added to the vault. And this is the
final cash balance figure for the bank at the end of any particular day bank’s cash sector
expresses the liquidity strength of the bank. As it has to deal with money, it is also
susceptible. This department does the most vital work, which is, contributing to the earnings
of bank along with providing customer satisfaction with their superior and quick services.
Cash Payments can be made very quickly as it takes a few seconds to see the account
balance. The transaction which involves cash is called Cash Transaction, which involves:

• Cash Payment
• Cash Receipt
3.3.1 Process of Cash Payment:

• The cheque leaf is checked to see if it is worded in the right way. Branch Seal, Date,
Total Amount to be withdrawn (in figure and word) and Signature of the Drawer are
covered in the cheque leaf. It is also checked whether the ‘bearer’ word is crossed

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 away or the cheque is in the name of any establishment. From cheque holder, a
receiver signature is also taken on the back of the cheque and the denominations of
notes are also written there.

• Signature confirmation is done by matching signature with the sample from the
recorded system, giving confirmation of the verifier and confirmation seal.

• Account is debited and the cheque is cancelled by the officer. Then it is posted in the
computer system and transaction number and posting stamp is attached on the cheque.

• Cash Payment Officer takes the cheque.

• A ‘Cash Paid’ stamp is attached on the cheque, and then this entry is taken in the Cash
Payment Register.

• Entry is posted in the debit drawer account and notes the transaction number on the
top of the cheque.

3.3.2 Cash Receipt Procedure:

• At First it is checked whether the deposit slip is properly filled up with every detail
needed (e.g. account number, amount in figure and word, depositor’s sign).

• Cash receiving Officer takes the cash, counts them twice and matches with the deposit
slip and also writes down the value of notes at the back of the cheque.

• The cash receiving officer also writes down the amount in figure and words in front
side of the cheque.

• A signature of cash receiving Officer and ‘Cash Received’ stamp is attached on the
front side of the cheque.

• Then It is added in the Record Book and a Scroll Number is written in the cheque.

• The system credits and places the deposit slip in the concerned account.

• Depositors get a counter folio as a receipt. System balances the cash by getting one
combined cash debit voucher posting.

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3.4 Accounts Section:

Under the Computerized Banking System, recording all Monetary Exchange of the Branch
and assuring precision are the main job of this sector. Routine of daily tasks of the Accounts
Department are as follows:

• Recording the transactions in the cashbook.

• Preparing the daily position of the branch comprising of Deposit and Cash.

• Making payment of all the expenses of the Branch.

• Recording inter branch Fund Transfer and providing accounting treatment in

this regard.

• Recording of the vouchers in the Voucher Register.

• Packing of the correct vouchers according to the Debit Voucher and Credit
Voucher.

The periodic tasks of this department are:

• Preparing the monthly salary statements for the employee.

• Publishing the basic data of the Branch.

• Preparing the weekly position for the branch comprising of the breakup of
sector wise Deposit, Credit, etc.

• Preparing the budget for the branch by fixing the target regarding Profit and
Deposit so as to take necessary steps to generate and mobilize deposit.

Money Transaction:
Sending / Transfer money from one place to another place for the customer is another
important service of banks. And this service is an important part of country’s payment
system. For this service, people, especially businessmen can transfer funds from one place to
another place very quickly. Methods of transactions can be payment order, demand draft etc.

Page | 26
Clearing
This section receives all kinds of Cheque in favor of the client for clearing as the part of their
Banking Service. Clearing is a system by which a bank can collect its own client money from
other banks through clearing house.

Member of Clearing House:

Mutual Trust Bank Limited is the member of clearing house. According to the Article 37(2)
of Bangladesh Bank Order, 1972, the banks which are the member of the clearing house are
called as Scheduled Banks. So, Mutual Trust Bank Ltd is a scheduled bank. The scheduled
banks clear the cheque drawn upon one another through the clearing house.

Types of Clearing: There are two types of clearing. These are given below:
• Outward Clearing: When the branches of a bank sends cheques of its clients drawn
on the other Banks within the local clearing zone for collection of money through
Clearing House, it is Outward Clearing.

• Inward Clearing: When a bank receives cheque drawn on them from other banks in
the Clearing House, it is Inward Clearing.

3.5 Other Banking Services that provided by General Banking Section are:

Online Banking Service

Mutual Trust Bank provides online banking facilities to its customers. It offers a customer to
deposit or withdraw any sum of money from any branch anywhere through online banking.
Any account holder having an account with the bank can avail this service.

The facilities available one can enjoy are:

• Summary of accounts and access account statements

• Order chequebook(s)

• Transfer funds to any MTB account

• Set up payees (within MTB), to whom one transfers funds regularly

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 • View credit card details and pay any MTB credit card bill

• Pay utility bills

• Mobile Top-up.

SMS Banking

MTB SMS Banking helps the account holder to send and receive textual information
anywhere 7 days a week and 24 hours a day. It allows the account holder to access
information as well as receive transaction alerts on his/her account by using his/her mobile
phone.

Facilities available at present

• Access the account from anywhere in the world through a mobile phone.

• Inquiry of balance without visiting the bank.

• Ability to receive mini statement of last 5 transactions.

• Transaction Alert lets the account holder get informed whenever there is a cash
withdrawal or credited transaction on his/her account.

Payment Order Service

MTB Centre Corporate Branch provides Pay Order services. If a customer wants to give
money to others for any purpose, they can give pay order. It is safe because they do not have
to carry the money and the receivers can encash the money whenever they need. There is no
option for dishonor, the client has to deposit money before doing PO. The commission of the
PO up to 10,000 is Tk 25, 10,001-100,000 is Tk 50 and 100,001-500,000 is Tk 100.

Locker Services

MTB Centre Corporate Branch provides locker services to their customers. Customers can
rent a locker for one year. Every year they have to pay a fee. They can keep any documents,
ornaments and valuable things in the locker. One key is given to the clients. There are three

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types of locker at MTBL: small, medium and big. The fee of this locker is Taka 1500, 2000,
and 2500.

MTBL Tele Banking Services

MTB Centre Corporate Branch also provides Tele Banking Services for its customers. I used
to see that the bank officials always receive the call on telephone and provide the necessary
information what the customer wants to know. Through Tele Banking system customers can
access their Bank Accounts over the telephone on a 24X7 basis. The facility is secure as the
customer is given a unique identification number to access his bank account through the
telephone.

MTBL Card Services

Credit Card Service

• There are various types of credit card in MTB. These are MTB Visa Classic Credit
Card, MTB Visa Gold Local Credit Card, MTB Visa Platinum Credit Card, MTB
Classic Master Credit Card, MTB Gold Master Credit Card, MTB Titanium Master
Credit Card, MTB World Master Credit Card etc.

Facilities Available:
• 50% Cash Advance facility.

• Useable at all ATMs bearing Visa logo.

• 5000 outlets for shopping in Bangladesh.

• Buy now pays later facility.

• Up to 45 Days Interest free period.

Debit Card Services

MTB debit cards are offered to every savings, current and SND account holder of the Bank.
These Debit card can be used in Visa/Master Card enabled POS machine across the country.
This electron Card can be used at any Dutch-Bangla Bank’s ATM all over the country.

Page | 29
Available Facilities are:

• No card fee for first year.

• No transaction fees on POS & DBBL ATMs.

• No time bindings for cash withdrawal.

• No need to come to Branch for cash withdrawals.

• There are 5000 outlets for shopping in Bangladesh

Page | 30
 CHAPTER-4
Financial Performance Analysis Of
Mutual Trust Bank Ltd.

Page | 31
4 Financial Analysis:

Financial analysis is a structural and logical way to present the overall financial performance
of a financial institution. It is used to measure a firm’s overall financial position over a given
period of time. It’s also helps in decision making process for business operation. Although
there are many different ways to measure financial performance, ratio analysis is the most
logical structure for financial performance analysis. Business shareholders try to concentrate
to get overall business overview from profitability, liquidity, assets management and
solvency ratio analysis. These ratios not only help in decision making process but also
emphasized on risk avoiding and profit raising related factors. To calculate this ratio, I have
taken quantitative data from banks annual report and financial statement. This analysis helps
to determine the firm’s financial position so as to identify its current strengths and weakness.
It is the easiest way to evaluate the performance of a firm to compare its present ratio with the
past ratio. It gives an indicator of the change and reflects whether the firm’s financial
performance has developed, deteriorated or remained constant overtime.

4.1 Ratio Analysis

Financial ratios analysis are useful indicators of a firm’s performance and financial situation.
Ratio Analysis enables the business owner/manager to spot trends in a business and to
compare its performance and condition with the average performance of similar businesses in
the same industry. It is a diagnostic tool that helps to identify problem areas and opportunities
within a company. Ratio analysis is very important for every business, because by calculating
ratio analysis we can understand the business position, business strength and weakness. By
knowing this information, management can take its necessary steps to organize their goal.

In the report I have calculated some ratios and tried to analyze the performance of Mutual
Trust Bank Ltd. according to these ratios:
• Liquidity ratios
• Debt management ratios
• Profitability ratios

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4.1.1: Liquidity ratio

These ratios actually show the relationship of a firm’s cash and other current assets to its
current liabilities. One ratio is discussed under Liquidity ratios.

Current ratio: This ratio indicates the extent to which current liabilities are covered by
those assets expected to be converted to cash in the near future. Current assets normally
include cash, marketable securities, accounts receivables, and inventories. Current
liabilities consist of accounts payable, short-term notes payable, current maturities of long-
term debt, accrued taxes, other accrued expenses etc.

Current Ratio=Current Assets/Current Liabilities

Figure-2: Current Ratio

3.5
3.1 2.98
3 2.85
2.61 2.58
2.5
2
1.5
1
0.5
0
2013 2014 2015 2016 2017

From the analysis, we can see that in 2013 the current assets were 3.1 times than the current
liabilities that has not fluctuated much throughout these years. A minimal decrease is seen in
2014.The reason for such stability can be there not investing remarkably on assets and not
making any huge financing from outside. If we take a closer look on the balance sheet, this
assumption gets a more realistic touch. Year by year assets have gone slightly up and the
liabilities as well, but proportionately liabilities were a little higher than the assets, which
actually reflected as a marginal decrease in the ratio.

Page | 33
4.1.2: Debt management ratios

Debt management ratios reveal 1) the extent to which the firm is financed with debt and 2)
its likelihood of defaulting on its debt obligations. These ratios include:

Debt to equity ratio: This ratio indicates how much the company is leveraged (in debt) by
comparing what is owed to what is owned. A high debt to equity ratio could indicate that
the company may be over-leveraged, and should look for ways to reduce its debt.

Debt to equity ratio = Total Debt / Total equity

Figure-3: Debt to Equity Ratio

17.5 17.3

17

16.5 16.25
16
16 15.81

15.5 15.24
15

14.5

14
2013 2014 2015 2016 2017

Equity and debt are two key figures on a financial statement, and lenders or investors often
use the relationship of these two figures to evaluate risk. The ratio of the business’ equity to
its long-term debt provides a window into how strong its finances are. Equity will include
goods and property the business owns, plus any claims it has against other entities. Debts
will include both current and long-term liabilities. The above analysis shows that MTBL has
a strong finance.

Total debt to total Asset Ratio: The debt to total assets ratio is an indicator of a
company's financial leverage. It tells the percentage of a company's total assets that were
financed by creditors. In other words, it is the total amount of a company's liabilities
divided by the total amount of the company's assets.

Page | 34
 Debt to total asset ratio: Total Debt/Total Asset

Figure-4: Total debt to total Aseet Ratio

0.94

0.94
0.94
0.94
0.94
0.94
0.94 0.94
0.94

0.94
0.94
0.94

0.94
2013 2014 2015 2016 2017

Though there are slight fluctuations, Mutual Trust Bank has been able to maintain an
average debt ratio of 0.94 from 2013 to 2017. Their total asset and their liabilities are
increasing mostly in same range. But it has slightly decreased from 0.941 to 0.9.38 in 2015.
This is good from a risk perspective, because higher leverage means higher earnings.
Higher leverage also implies that the bank is exposed to higher risk. During good times
when earnings are high, financial leverage is beneficial for a bank.

4.1.3: Profitability ratios

Profitability is the net result of a number of policies and decisions. Profitability ratios show
the combined effects of liquidity, asset management and debt on operating results.
This ratio includes:

Return on Asset: This number tells how effective the business has been at putting its
assets to work. The ROA is a test of capital utilization – how much profit (before interest
and income tax) a business earned on the total capital used to make that profit. This ratio is
most useful when compared with the interest rate paid on the company’s debt.

Return on Total Assets (ROA) = Net income available to total common shareholders /
Total assets

Page | 35
 Figure-5: Return on Asset Ratio
1.00%
0.90% 0.94% 0.93%
0.80% 0.83% 0.86%
0.70%
0.60%
0.50% 0.58%
0.40%
0.30%
0.20%
0.10%
0.00%
2013 2014 2015 2016 2017

Return on assets is an indicator of how profitable a company is. Use this ratio annually to
compare the business’ performance to its norms. So, return on total assets increased
gradually throughout the years. This may have occurred because MTBL did not used more
debt financing throughout the year 2013,2014,2015,2016,2017 which resulted in less
Interest cost and brought the net income up.

Return on Equity: Return on Equity measures the amount of Net Income earned by

utilizing each dollar of Total common equity. By this, we can find out how much the
shareholders are going to get for their shares.

Return on Equity (ROE) = Net income available to common shareholders / Total

common equity

Figure-6: Return on Equity Ratio

18.00%
16.00% 16.40%
14.00% 15.22%
14.15% 14.30%
12.00%
10.00% 10.54%
8.00%
6.00%
4.00%
2.00%
0.00%
2013 2014 2015 2016 2017

Page | 36
 The Return on Equity is gradually increased. We can see that the return on equity in 2013
was 10.54% and in 2017 it was 16.4% which is very good for the bank and for the
shareholders as well. This happened because the net income gradually increased.
 
Net profit margin ratio: It is a profitability ratio and it represents the percentage of
profit from business operations after deducting business operating expenses, interest
expense, taxes and preferred stock dividends from revenues.

Net profit margin ratio= Net income after tax/Total operating revenue

Figure-7: Net Profit Margin Ratio

25.00%
23.76%
20.00% 21.85%
19.64%
18.62%
15.00%
13.58%
10.00%

5.00%

0.00%
2013 2014 2015 2016 2017

Here we can see that the net profit margin of Mutual Trust Bank showing an increasing
trend. From 2013 to 2017 net profit margin of the bank increased incredibly. It increased
because the increase in their total operating revenue is higher than the increase in net income
after tax.

Findings on Financial Performance:

Liquidity Ratio
Current ratio is decreasing throughout the years. In 2017 the ratio was 2.58 where in 2013 it
was 3.1. It is in decreasing trend because the liabilities is increasing comparatively than the
assets.

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Debt Management Ratio:
There is an unstable trend in the debt to equity capital ratio of Mutual Trust Bank Ltd. from
2013 to 2013. The debt to equity capital ratio has decreased from 17.3 in 2013 to 15.24 in
2015 but it has increased in 2017 which was 16.25. It means that their liability is increasing at
a higher rate than their equity capital from 2013 to 2015 and 2016. But it increases form year
2016 to 2017.

Debt to total asset ratio analysis of MTBL is in good position as it was not fluctuated much.
The average ratio over the five years is 0.94.

Profitability Ratio:
Return on Asset ratio has been increased from 0.58% in 2013 to 0.94% in 2015 and in 2017 it
was almost same. Return on equity has been also increased over the five years period. It was
increased from 10.54% in 2013 to 16.40% in 2017 which is very good for the shareholders
and the bank as well. And net profit margin of MTBL has been also increased. It has been
increased from 13.58% in 2013 to 23.76% in 2017 which indicates that Mutual Trust Bank is
a profitable bank.

Page | 38
 CHAPTER-5
My Internship Experience at MTB Centre Corporate Branch,
Mutual Trust Bank Ltd.

Page | 39
5.1 My Internship Experience at MTBL

Internship program is very important and significant for a BBA student because by doing
an internship in any reputed organization a student can gather many important knowledge
and experience about the realistic job life before getting a job. My internship period was
started from 9th December 2018 and it was finished by 10th March 2019. I have learnt so
many things about General Banking Activities in these three months Internship Program.
I have found a responsive working atmosphere in MTB Centre Corporate Branch and I
felt like I was one of them. Each of the employee was very helpful and assisted me very
much to understand all the works easily.

I have worked on how to open different kinds of accounts, e.g. Regular Savings Account,
Fixed Deposit Account, DPS (MTB Brick by Brick) Account, Monthly Savings Account,
MTB Millionaire Account etc. I have also learned how to verify the National ID Card.
MTBL has access to the Bangladesh Election Commission website to verify NID.

I have enjoyed my work a lot in MTB Centre Corporate Branch and most importantly i
have learnt how to work under pressure with great responsibilities.

5.2 Job Responsibilities

I have prepared this report on the basis of experience I have gathered during the period of my
Internship. In this time of period, I mainly worked in General Banking Section. Bank does
not follow any guideline or fixed any responsibilities for the Intern. Mainly I have done many
pending works of the Account Opening Section and Accounts and Clearing Department.
Besides that, I have also done different types of tasks in different desks like:

• Opening accounts

• Issuing cheque books

• Changing account information

• Providing client statements

• Receiving Debit card and Credit card and give it to customers when customer comes

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 • Receiving Debit and Credit card pin and give it to customer when customer comes

• Receiving Cheque books and pay order voucher

• Assisting customers with necessary information.

• Collecting necessary documents from the customers such as photocopy of NID, TIN
certificate and passport size photo of the customers.

5.3 My Daily Work Routine

I usually started my work in the bank at the official time, from 10:00 am to 6:00 pm. I have
worked in different desks from starting of the office time to till end of the office time.

5.4 My activities in Account Opening Department

I have learned the procedure of opening an account and got to know about the documents that
are needed for opening an account and types of accounts dealt by Mutual Trust Bank Limited
in this department. There are various types of accounts along with their features which
includes Current Account (C/A), Savings Account (SB), Brick by Brick (DPS), SND, FDR,
etc. The employee of MTB Centre Corporate Branch assisted me how to deal with client’s
questions regarding different accounts opening, what amount of interest rate they will get
from these different categories of accounts, how to locate desired cheque books from the
locker according to customers’ requirements, account services and many more.

• Giving information to the customers, what type of documents will be required to open
an account. I had to tell the customers that they need two copies of their passport size
photograph and one photograph of the nominee and the photocopy of client’s and
nominee’s National ID and photocopy of Source of Income or E-TIN certificate of the
account holder.

• Correction of uncompleted forms which have detected by internal audit with the help
of the employees. Like there were some forms which were unfilled so I have to put
account number, title name, occupation of account holder, etc. Some form kept

Page | 41
 without proper mailing address, TIN, National ID card number and so on. My Job was
to complete that information from the attached information to fulfill the forms.

• Then I have to fill up the Know Your Customer (KYC) Form of Individual, Non-
Individual, Beneficial and Corporate Risk Rating. In risk rating, my task was to find
risk level and risk rating of that account holder or corporate by considering TP form
for the purpose of measuring overall risk assessment.

• Distributing the desired Cheque book by asking their name, account number and then
verifying them.

• Using the photocopy machine, scanner and printer for required purpose.

• Finding the DPS, old accounts which have closed.

• I have learned how to fill up an account form. Firstly, I put the account number, UCIC
number and then the account holder’s personal information like name, address, date of
birth, nominee’s relation with account holder. Then I have also put the amount of
monthly income with the occupation of the account holder. And if it is a savings or
current account, the introducer’s information is a must. Finally, sector code of the
account holder, i.e. Service holder, Businessman, Student or House-wife, etc. also had
to post.

5.4.3 Issuing Payment Order slip:

To issue a Pay Order the Pay Order form should be filled up at first. I also had to fill
up the PO form. The form includes information like, to which individual it issued, and
the sum of money and the name of the client. The Pay Order block is prepared in
which in the front page “NOT OVER ……...TK ONLY” is written in Block Letter
after receiving cash in the cash counter and other information’s have been printed.

5.4.4 Issue of the Cheque Book:

While issuing Cheque book many steps are followed. At first the verification of
account holder’s signature is to be done. Then the Cheque book is given. The book’s
serial number is written down in the requisition slip and chequebook register. After

Page | 42
 completing all steps, the account holder’s signature is taken on the chequebook
register. And these tasks are done by us (the interns) in the branch.

5.4.5 KYC Form completion:

I also used to fill up the KYC form. KYC is stands for "Know Your Customer".
Account holder’s full information is given in KYC form which includes submitted
documents for identification, amount of monthly income, the source of income, etc.

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 Chapter-6
Findings, Recommendations and Conclusion

Page | 44
6.1 Findings

Mutual Trust Bank Limited is a one of the profitable banks with growth opportunities. This
is a consumer base bank. After finishing my report and analyzing my work and observation I
found following points:

1. In opening of an account some additional documents are needed as compared with

theoretical record. Like trade license, E-TIN certificate, member of Dhaka chamber of
commerce and industry (DCCL) in Dhaka city. And some documents are not essential
practically as referred in theory. For example, some documents of the nominated person and
sometime introducer.

2. Generally any person can purchase pay order, demand draft by depositing money and
commission. But the person who wants to purchase these should have an account in the bank
branch. And sometimes these discourage customers to transact with bank.

3. When a client wants to open an A/C especially savings and current A/C, he must have
needed an introducer. Without an introducer a customer cannot open a savings or current
A/C. And sometimes it may create a problem for the clients.

4. There is a rule to deposit at least a fixed amount of money in case of opening an account.
Sometimes many customers find the amount higher than other bank which discourages
him/her to open an account in the bank.

5. From the financial performance analysis we can see that the banks financial position is
good. Bank’s net profit margin is gradually increasing which indicates that it is a profitable
bank.

6. They have fewer counters for clients to open accounts.

7. Working process is slow to open more accounts and less equipment to work on.

8. Because of less account opening desk, not all the clients get good attention.

9. The computer training is needed for the employees. Because there are some employees
who have very limited knowledge of computer which affects the banking system and works.

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6.2 Recommendation

Mutual Trust Bank Ltd. is a renowned bank in Bangladesh with many growth opportunities.
After completing my internship program in MTB Centre Corporate Branch I realized that
MTBL is very much organized and always focused to provide its best service to its clients.
Nevertheless, the bank still has some minor problems on which MTBL management needs to
take appropriate steps to solve them which will help them to become one of the leading banks
of the country. I hope that these recommendations would be helpful for the Mutual Trust
Bank Ltd. These recommendations are given below:

• As I worked mainly on account opening section I have seen that the account opening
counters is not enough and so the customers had to wait. So I think they should
increase the amount of counters and employees so that more customers can be served
without waiting.

• I think MTB should focus on the customers that they already have increased their
loyalty towards the bank so that those existing customers will recommend the service
to their friends and relatives.

• In my internship program I have noticed that some computers did not work properly
which delay the services so working process should be faster with better technology
like faster computers, and other operating systems and also printers which are easy to
use.

• In MTB Centre Corporate Branch I have noticed that sometimes employees had to
provide services after office hour which disturbs and at the same time discourage the
employees towards their works. So I think the branch should be more disciplined
about that.

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6.2 Conclusions

Mutual Trust Bank Ltd is serving an essential role in the financing of the people of
Bangladesh. It is one of the leading commercial banks in Bangladesh.  MTBL is known as a
very dependable and good bank, and the increasing number of its clients shows that it’s
increasing acceptance among their customers. MTBL is trying hard in their performance in
financial condition. MTBL is rapidly increasing their total number of clients and account
holders, and currently they are focusing on their level of customer satisfaction. They want to
prevent loss of customers to numerous competing banks. MTBL should increase their number
of branches and ATM booths more to serve even more people around the country.

I got the opportunity to work practically in a well-known bank as MTB. I got to interact with
the employees to provide the services and also the customers to understand their expectations.
It has increased my knowledge that I have learnt from University more accurately. MTB is
much more structured than many banks in Bangladesh and is always looking for
improvement. With time, they can succeed on becoming the country’s top banks and
everyone’s “BANK of Choice.

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Page | 48
References

About MTBL: Website of Mutual Trust Bank Ltd.

Deposit Products and Services: Website of Mutual Trust Bank Ltd.

Ratio Analysis data: Annual Report-2013, 2014, 2015, 2016, 2017

Ratio Analysis Formula: Book- Bank Management & Financial Services by Peter s. Rose &
Sylvia C. Hudgins.
Appendix
1. Current Ratio
In million
Particulars 2013 2014 2015 2016 2017
Current 92913.3 107010.37 136439.79 152514.44 187508.12
Asset
Current 26147.4 35797.95 47803.26 58361.5 72833.1
Liabilities
Current 3.1 2.98 2.85 2.61 2.58
Ratio

2. Debt to Equity Ratio

In million
Particulars 2013 2014 2015 2016 2017
Total Debt 95249.82 108901.6 136616.9 154696.7 189609.98
Total 5482.3 6804.13 8959.8 9783.7 11667.5
Equity
Debt to 17.3 16.0 15.24 15.81 16.25
equity ratio

3. Total Debt to Total Asset Ratio

In million
Particulars 2013 2014 2015 2016 2017
Total Debt 95249.82 108901.6 136616.9 154696.7 189609.98
Total Asset 100732.13 115705.81 145576.78 164480.42 201277.52
Total debt to 0.940 0.941 0.938 0.940 0.942
total asset
ratio

4. Return on Asset
In million
Particulars 2013 2014 2015 2016 2017
Net income 578.18 963.293 1364.17 1403.78 1916.22
Total assets 100732.13 115705.81 145576.78 164480.42 201277.52
ROA 0.58% 0.832% 0.937% 0.86% 0.93%

5. Return on Equity
In million
Particulars 2013 2014 2015 2016 2017
Net income 578.18 963.29 1364.17 1403.78 1916.22
Total equity 5482.3 6804.13 8959.88 9783.7 11667.5
 ROE 10.54% 14.15% 15.22% 14.3% 16.4%

6. Net Profit Margin

In million
Particulars 2013 2014 2015 2016 2017
Net income 578.18 963.293 1364.17 1403.78 1916.22
Total 4257.24 5170.7 6243.0 7145.91 8064.72
operating
revenue
Net profit 13.58% 18.62% 21.85% 19.64% 23.76%
margin