Part – 2 Chapter – 1 Introduction 1
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Part – 2
Chapter – 1
Introduction
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Background of the study
Bachelor of Business Administration program is a under-graduate program for individuals
who plan career in banking and allied fields. It is an integrated theoretical and practical
method of education. In fact practical orientation with day-to-day activities of banks is one of
the most important requirements of BBA program “Practical orientation in Banks” program is
arranged to have this practical exposure. Every year office sends the students of BBA program
to different Commercial Banks. This report has been conducted to analyze the practical
experience, which I gained while working in Mutual Trust Bank Ltd. Bashundhara City
Branch, Dhaka.
Objectives of the study
The objective of the study can broadly be classified under two branches as General Objective
and Specific Objective. Achievement of the specific objective will automatically lead to the
achievement of general objective.
General Objective
The general objective is to prepare and submit a report on the topic of “Overall Performance
Evaluation of Mutual Trust Bank Limited (MTBL)” within the specified time. It has helped me
to achieve a broad objective of synchronizing academic knowledge with the practical
experience concerning the various activities of MTBL.
Specific Objectives
1. To gather comprehensive knowledge on overall banking functions and the
expectations of the customers regarding the service level of the bank.
2. To make a study of the facts in order to arrive at certain conclusion about overall
banking operation.
3. To find out the strengths, weaknesses, opportunities and threats to the bank.
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4. To analyze the bank’s performance in some key areas by analyzing the annual report.
5. To find out existing problems of the bank.
6. To suggest some possible remedial measures for the betterment of the bank.
7. To examine the credit management policy and practice adopted by the bank.
Significance of the Study
MTBL (Mutual Trust Bank Ltd.) is one of leading private commercial banks of the country.
Through its 44 branches all over the country, it is performing banking activities. To mobilize
funds from surplus units and deploy funds to deficit units, the bank is playing a great role in
the economic development of the country. MTBL is one of the key players of country’s
economic development.
Scope of the Study
The report covers different departments of MTBL, Bashundhara City Branch like General
Banking, Credit Management & Foreign Exchange department. It also presents a brief
scenario of MTBL.
Limitation of the study
During the preparation of my report I’ve been encountered with several problems which may
be termed as limitation of this report; such as –
Taking relevant papers and documents from the bank were strictly prohibited in some
cases.
Many procedural matters were directly conducted by the top management level,
which may also gave some sort of restrictions, because I was not able to reach at all
the needed information which might be required for my study.
To protect the confidentiality, some parts of the report can not be so in depth what it
should be.
Sufficient records, publications, facts and figures were not available. These
constraints narrowed the scope of real analysis.
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Like any other research, this report is limited to time and resource and only three
month is not enough to cover such wide area of banking as well as preparing this
report which may take more than a year.
Methodology of the study
The methodology of the report is stated below, which was appropriately exercised in
achieving the above stated objective.
Sources of Data collection:
The inputs are collected from two sources –
a) Primary Sources:
Discussion with Bank Officers.
Personal observation.
Desk work in different sections/departments.
b) Secondary Sources:
Annual report of the Bank.
Consultation of related book and publications.
Different Statements.
File Balance sheet and various documents.
Methods of Sampling
There are various types of sampling methods under two separate headings; one is Random
Sampling and another is Non-Random Sampling. Among these methods, I have worked with
Convenience Sampling of Non-Random Sampling method to select my sample size of the
research because of its convenient availability.
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Chapter - 2
Organizational ProfileOf
Mutual Trust Bank Limited
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OVERVIEW of MTBL
Mutual Trust Bank is involved in providing financial and banking services in Bangladesh. It
offers services such as commercial banking, merchant banking and financial intermediary
services, through its 44 branches and 10 SME (small and medium enterprise) service centers
situated across Bangladesh. The bank primarily operates in Bangladesh, where it is
headquartered in Dhaka. The company recorded revenues of BDT 2,544 million
(approximately $37.6 million) in the fiscal year ended December 2009, an increase of 38.3%
over 2008. The company's operating profit was BDT 1,626.9 million (approximately $24
million) in fiscal 2009, an increase of 36.1% over 2008. Its net profit was BDT 820.6 million
(approximately $12.1 million) in fiscal 2009, as compared to the net profit of BDT 305
million (approximately $4.5 million) in 2008.
Historical Background of MTBL:
The Company was incorporated on September 29, 1999 under the Companies Act 1994 as a
Public Company Limited by Shares for carrying out all kinds of banking activities with. The
Company was also issued Certificate for Commencement of Business on the same day and
was granted license on October 05, 1999 by Bangladesh Bank under the Banking Companies
Act 1991 and started its banking operation on October 24, 1999.
As envisaged in the Memorandum of Association and as licensed by Bangladesh Bank under
the provisions of the Banking Companies Act 1991, the Company started its banking
operation and entitled to carry out the following types of banking business:
(i) All types of Commercial Banking Activities including Money Market operations.
(ii) Investment in Merchant Banking Activities.
(iii) Investment in Company Activities.
(iv) Financiers, Promoters, Capitalists etc.
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(v) Financial Intermediary Services.
(vii) Any related Financial Services.
The Company (bank) operates through its Head Office at Dhaka and 44 branches and 10 SME
Service Centre. The Company/Bank carries out international business through a global
network of foreign correspondent banks.
Mission, Vision, Core Objectives and values of MTBL
Mission
MTBL aspire to be the most admired financial institution in the country, recognized as a
dynamic, innovative and client focused company, that offers overall array of products and
services geared for excellence and create an impressive economic value.
VisionMutual Trust Banks vision is based on the philosophy well known as MTV3V.
1. One of the best performing banks in the country.
2. The banks of choice &
3. A truly world class bank.
Objectives
1. To ensure inflow of funds at combinations of least possible cost.
2. To maintain a discreet credit policy.
3. To enhance versatility and diversification through the penetration of new market
segments, thereby fulfilling unmet needs.
4. To extend financial assistance to the citizenry, living at dispersed locations by
expanding the network of branches.
5. To practice stronger IT- driven initiatives that will meet the challenges and
requirements of the bank and its clientele.
6. To improve administrative and organizational structures in order to prepare the
platform for best practices of corporate governance.
7. To enrich the banking sector with improved awareness on Corporate Social
Responsibility.
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8. To provide extensive career opportunities through competitive pay and benefits and a
flexible environment.
Values
Commitment
1. Shareholders – Create sustainable economic value for our shareholders by utilizing an
honest and efficient business methodology.
2. Community – Committed to serve the society through employment creation, support
community projects and events and be responsible corporate citizen.
3. Customers – Render state-of-the-art service to our customers, offering diversified
products and aspiring to fulfill their banking needs to the best of our abilities.
4. Employees – Be reliant on the inherent merit of the employees and honor our
relationships as a tribute to be a part of this renowned financial institution. Work
together to celebrate and reword the unique backgrounds, viewpoints, skills, and
talents of everyone at the work place, no matter what the job is.
Accountability
As a bank, we are judged solely by the successful execution of our commitments, and we
expect and embrace that from of judgment. We are accountable for providing the highest level
of service along with meeting the strict requirements of regulatory standards and ethical
business practices.
Agility
We can see things from different perspectives; we are open to change and not bounded by
how we have done things in the past. We can respond rapidly and adjust our mode of
operation to meet stakeholder needs and achieve our goals.
Trust
We value mutual trust, which encompasses transparent and candid communications among all
parties.
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Capital Adequacy:
Authorized capital:
The authorized Capital of the Bank is Tk. 38, 00.00 million of 38,000,000 ordinary shares of
Tk. 100 each.
Issued, Subscribed and Paid-up Capital:
The issued, subscribed and paid-up capital of the Bank is Tk. 997.92 million of 2044.00
ordinary shares of Tk. 100 each fully paid-up in cash.
Board of Directors
The board consists of 12 highly accomplished directors, who are professionals in
Management, Law and Business. They possess the skill, experience and knowledge to set the
directors and oversee the overall activities of the bank.
Chairman
Vice Chairman
Directors & Sponsors
Managing Director
Company Secretary
Chief Adviser
Tax Advisor
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Auditors
Management Team
Managing Director
Deputy Managing Director
Senior Executive Vice President
Executive Vice Presidents
Senior Vice Presidents
Vice Presidents
Senior Asstt. Vice Presidents
Asstt. Vice Presidents
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Management Hierarchy:
SENIOR PRINCIPLE OFFICER (SPO)
PRINCIPLE OFFICER (PO)
SENIOR EXECUTIVE VICE PRESIDENT (SEVP)
EXECUTIVE VICE PRESIDENT (EVP)
SENIOR VICE PRESIDENT (SVP)
VICE PRESIDENT (VP)
SENIOR ASSISTANT VICE PRESIDENT (SAVP)
ASSISTANT VICE PRESIDENT (AVP)
SENIOR EXECUTIVE OFFICER (SEO)
SENIOR OFFICER
OFFICER/TRAINEE OFFICER
JUNIOR OFFICER
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ASST. OFFICER
The Organizational Structure
The organizational structure and corporate governance of Mutual Trust Bank Limited
Strongly reflect its determination to establish, uphold and gain a stronger footing as an
organization, which is customer-oriented and transparent in its management.
Product and services of MTBLProduct and services of MTBL
Deposit schemes of MTBLDeposit schemes of MTBL
Mutual trust bank Limited offers mainly various types of deposit schemes, those are:
Mutual trust bank Ltd. Offer following types of deposit account:
Consumer Banking Products.
Customize products.
MTBL Consumer Banking Products are:
Brick by Brick Savings Scheme
Monthly Benefit Plan
Save Everyday Plan
Children Education Plan
Consumer Credit Scheme
Best Invest Plan
Customized Products are:
MTB Unique Savings Plan
MTB Triple Saver Plan
MTB Millionaire Plan
»MTB Double Saver Plan
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MTBL Consumer Banking Products are in detail:
Brick By Brick Savings Scheme:
Drops of water make an ocean. Your habit of regular savings will provide you comfort in the
future. Brick by Brick is a unique monthly savings plan which builds up over the years and
provides a lump sum amount at maturity
Any Residential of Bangladeshi this deposit account will be open in any day of month. You
will require opening a savings/current account. You will transaction or deposit in your
savings/current account, the bank will credit to your deposit account and debited to your
saving/current account automatically.
The savings periods are 5, 8 and 10 years. Monthly installments are Tk. 500/=, 1,000/=,
2,000/=, 5,000/= and thereafter in multiples of Tk. 500.
Rules & Regulation
You will have to open an account in the bank from which a standing instruction will be given
to transfer the monthly deposit in the scheme’s account and you must ensure that your account
has sufficient balance within the 20th of each month.
If the date of 20 is holyday then of course you should deposits that amount in next day. If you
don’t to entry your deposit amount in right time of course the bank hold the penalty Tk. 25 per
month.
If you can’t maintain your deposit in 03 month, then the Bank should close your deposit
account.
If the depositor wanted to Brock up his or her deposit account before maturity date, and before
one year that moment he or she could not found any kind of interest, if its time period not less
then one year but before maturity date that moment depositor could found in interest rat like
as savings account .e.g. 6.25%.
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The maturity value is an indicative figure. Tax/Excise Duty will be deducted as per govt.
rules. 90% Loan Advantage on deposited amount but the minimum balance should have Tk.
25000/-.
Monthly skims or deposit:
Monthly deposit After 05 Years After 08 Years After 10 Years500/- 41,500/- 81,500/- 1,17,500/-1000/- 83,000/- 1,63,000/- 2,35,000/-2000/- 1,66,000/- 3,26,000/- 4,70,000/-5000/- 4,15,000/- 8,15,000/- 11,75,000/-
MTB Monthly Benefit Plan:
This plan offers you to generate monthly income out of your deposit. It has been designed to
help and assist conscious savers from all strata of the society. The minimum deposit is Tk.
50,000/= or in multiples thereof. There is no upper limit and this plan is for a 3 (three) & 5
(five) years term that cannot be changed subsequently. You will require opening a
savings/current account. Monthly income will be credited to your account. Any Residential of
Bangladeshi this deposit account will be open in any day of month. From interest amount the
Bank cut tax and excise duty.
Rules & Regulation
If the depositor wanted to broke up his or her deposit account before maturity date, if its time
period is less then one year that moment he or she could not found any kind of interest, If its
time period passed one year but before maturity date that moment depositor could found in
interest rat like as savings account .e.g. 6.25%.The maturity value is an indicative figure.
Tax/Excise Duty will be deducted as per govt. rules
The depositor can found loan from 90% deposit amount but the minimum balance should have Tk. 25000/-.
A few examples of deposit and income are given below:
Deposit AmountIncome Amount(for 3 year plan
Income Amount(for 5 year plan)
Tk. 50,000/= Tk. 487.50/= Tk. 500/=Tk. 1,00,000/= Tk. 975/= Tk. 1000/=
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Save Everyday Plan:
Saving money for the future is a common practice in any society. Savings help you to build a
better tomorrow. Mutual trust bank Ltd. Offers you “Save Everyday” Plan. The primary
advantage of this plan is that you are absolutely free to choose your own time for depositing
money into this account. You can deposit daily, weekly or monthly. The choice is yours, but
the transactions will have to be within the Bank’s transaction hour. Any residential of
Bangladeshi this deposit account will be open in any day of month.
Rules & Regulation
You will require opening a savings/current account. You will transaction or deposit in your
savings/current account, the bank will credit to your deposit account and debited to your
saving/current account automatically.
This is a 5 year plan and you will be required to open the account with an initial deposit of Tk.
2500/= only. We offer you very attractive interest rate which is accrued in this account on a
daily basis. If the depositor wanted to broke up his or her deposit account before maturity
date, if its time period is less then one year that moment he or she could not found any kind of
interest, if its time period more then one year but before maturity date that moment depositor
could found in interest rat like as savings account .e.g. 6.25%.
The maturity value is an indicative figure. Tax/Excise Duty will be deducted as per govt. rules
from interest.
The depositor can found loan from 90% deposit amount
MTB Education Plan.
Education is the backbone of any nation and one of the primary factors of prosperity. An
educated nation stands tall in the committee of nations and deserves respect. A child’s
education is of prime importance and every parent should ensure and make every effort to get
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their child educated. To admit a child in a good institution parents require adequate amount of
savings for the cost of admission into a school. This plan allows new parents to save for
4/7/9/12 years. The parent can deposit any amount of money at any day of the month. The
interest rate is very lucrative and we offer substantially more than the prevailing savings rate.
Any residential of Bangladeshi this deposit account will be open in any day of month.
Rules & Regulation
You will require opening a savings/current account. You will transaction or deposit in your
savings/current account, the bank will credit to your deposit account and debited to your
saving/current account automatically.
Its savings amount minimum Tk. 1000/- and maximum Tk. 20,000/- or multiply any amount.
Depositor can deposit any amount of money at any day of the month.
You will have to open an account in the bank from which a standing instruction will be given
to transfer the monthly deposit in the scheme’s account and you must ensure that your account
has sufficient balance within the 20th of each month.
If the date of 20 is holyday then of course you should deposits that amount in next day. If you
don’t to entry your deposit amount in right time of course the bank hold the penalty Tk. 25 per
month.
If you can’t maintain your deposit in 03 month, then the Bank will close your deposit account.
If the depositor wanted to Brock up his or her deposit account before maturity date and before
one year that moment he or she could not found any kind of interest, if its time period more
then one year but before maturity date that moment depositor could found in interest, rat like
as savings account .e.g. 6.25%.The maturity value is an indicative figure.
90% Loan Advantage on deposited amount but the minimum balance should have Tk.
25000/-.After maturity period the Bank cut tax and excise duty as per govt. rules.
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Monthly skims or deposit:
Monthly Deposit After 04 years After 07 years After 09 years After 12 years1000/- 62,200/- 1,33,500/- 1,97,500/- 3,28,500/-2000/- 1,24,400/- 2,67,000/- 3,95,000/- 6,57,000/-3000/- 1,86,600/- 4,00,500/- 5,92,500/- 9,85,500/-4000/- 2,48,800/- 5,34,000/- 7,90,000/- 13,14,000/-
Consumer Credit Scheme:
In order to make a significant contribution in the living standards of the people of medium and
low income category, MTBL has introduced a scheme called “Consumer Credit Scheme”.
With a view to materialize the dreams of those who are unable to make one time investment
from their own savings, one can now afford to buy necessary household equipments and thus
improve the standard of living.
All sorts of household durables e g. Television, Refrigerators, Computers, Air Conditioners,
Video Cameras, Washing/ Drying Machines and Furniture’s are allowed under this scheme.
One can buy Motorcycle too under this programmed. The collateral security is minimum and
the interest rates are one of the lowest in the market.
MTB Best Investment plan:
Best Invest offers you efficient high return investment plan. This plan helps you to build up a
sizeable income in easy and affordable installments. This plan allows you to own 5 times the
initial invested amount. Best Invest offers two separate and convenient term deposit periods
for 4 years and 6 years respectively.
Best Invest is available in units worth Tk.50, 000/- each. You will invest Tk.10, 000/- as down
payment for purchasing 1 (one) unit and the Bank will provide loan for Tk.40,000/-The
customer also has the option to buy units in multiples of Tk. 50,000/- but maximum up to Tk.
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1, 00, 00,000/- (one crore). This is a unique high return plan catering to all income go the
maturity value is an indicative figure. If the depositor wanted to Brock up his or her deposit
account before maturity date also less than one year that moment he or she could not found
any kind of interest, if its time period more then one year but before maturity date that
moment depositor could found in interest, rat like as savings account .e.g. 6.25%. 90% Loan
Advantage on deposited amount but the minimum balance should have Tk. 25000/-.After
maturity period the Bank cut tax and excise duty as per govt. rules.
MTBL Customized Banking Products are in detail:
01. MTB Double Saver Plan
02. MTB Triple Saver Plan
03. MTB Millionaire Plan
04. MTB Unique Savings Plan
MTB Double Saver Plan:
MTB Double Saver Plan offers you a one time savings scheme, which will provide you
double the amount of your deposit after seven (7) years. You will receive a handsome amount
at maturity. If you are an individual or if your institution is an NGO or an Educational
institution or a Trust or Society or any other institution, you may invest your savings in this
scheme with a minimum deposit of Tk. 10,000/- for seven (7) years with no limit for
maximum amount. At maturity you will get double of your deposited amount along with a gift
item. If the depositor wanted to Brock up his or her deposit account before maturity date and
before one year that moment he or she could not found any kind of interest, if its time period
more then one year but before maturity date that moment depositor could found in interest, rat
like as savings account .e.g. 6.25%. Tax/Excise Duty will be deducted as per govt. rules. 90%
Loan Advantage on deposited amount
MTB Triple Saver Plan :
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MTB Triple Saver Plan offers you a one time savings scheme, which will provide you three
times of your deposit after eleven (11) years. You will receive a big amount at maturity. If you
are an individual or if your institution is an NGO or an Educational institution or a Trust or
Society or any other institution, you may invest your savings in this scheme with a minimum
deposit of Tk. 10,000/- for eleven (11) years with no limit for maximum amount. At maturity
you will get three times of your deposited amount along with a gift item. If the depositor
wanted to Brock up his or her deposit account before maturity date and before one year that
moment he or she could not found any kind of interest, if its time period more then one year
but before maturity date that moment depositor could found in interest, rat like as savings
account .e.g. 6.25%. The maturity value is an indicative figure. Tax/Excise Duty will be
deducted as per govt. rules. You can even avail loan up to 90% of the deposited amount.
MTB Millionaire Plan.
If you are an individual or if your institution is an NGO or an Educational institution or a
Trust or Society or any other institution, any residential of Bangladeshi this deposit account
will be open in any day of month. You will require opening a savings/current account. You
will transaction or deposit in your savings/current account, the bank will credit to your deposit
account and debited to your saving/current account automatically. You may invest your
savings in this scheme for 6/8/10/12/15/20 years with different installment sizes. At maturity
you will get Tk. 10, 00,000/-. The maturity value is an indicative figure. Tax/Excise Duty will
be deducted as per govt. rules. You can even avail loan up to 90% of the deposited amount
after 1(one year).
MTB Millionaire Plan:
Monthly deposit Period or time After maturity9,865/- 6 10,00,000/-6,560/- 8 10,00,000/-4,380/- 10 10,00,000/-3,180/- 12 10,00,000/-2,050/- 15 10,00,000/-1,045/- 20 10,00,000/-
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MTB Unique Savings Plan:
Any residential of Bangladeshi this deposit account will be open in any day of month. You
will require opening a savings/current account. You will transaction or deposit in your
savings/current account, the bank will credit to your deposit account and debited to your
saving/current account automatically. Unique Savings Plan offers you to deposit any amount
of your choice but not less than Tk. 500/- for 3/4/5 years. This is a high income plan with
withdrawal facilities. The withdrawal facility will help you at the time of any emergency. You
can withdraw 50% of the deposited balance for once a month If the depositor wanted to Brock
up his or her deposit account before maturity date and before one year that moment he or she
could not found any kind of interest, if its time period more than one year but before maturity
date that moment depositor could found in interest, rat like as savings account .e.g. 6.25%.
After maturity period the Bank cut tax and excise duty as per government rules. The depositor
can found loan from 90% deposit amount but the minimum balance should have Tk. 25000/-
2. PERSONAL BANKING:2. PERSONAL BANKING:
Following Personal Banking Products are available with:
Current Account
Saving Account
Short Term Deposit Account
Fixed Deposit Account.
CURRENT ACCOUNT:
A Current Account is an account, which is generally used for business purpose. Clients enjoy
maximum flexibility with this account. This account offers the following services:
Minimum balance fee 1500
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Any number of transactions a day
Any branch banking facility (this facility is available with any type of account)
Phone banking (available only with few branches)
Statement of account at any desired time
The current account Interest Rate is 0.00%,
Account can be: Individual Account, joint Account, Proprietor Ship Account, Limited
Company Account
Nature of Current Accounts (CD):
»The current account facilities the account holder to draw money at any times Notice is not
required but no profit/interest is given to the current account deposit money.
» Current account can be open by any individual or joint or any name of proprietorship
business, private limited company or public limited company, association clubs, society’s
trusts etc. Generally current account opened for businessmen and trade for easy transaction.
By taking this liability.
» Mutual trust bank Ltd. Takes service charge Tk 500/- half yearly on each account
irrespective of balance.
» Account closing charge Tk. 500/-
» Keep the minimum balance of Tk. 1500/-
SAVINGS ACCOUNT:
Savings account is a type of account, which offers the client a certain rate of interest. This rate
of interest is subject to some constraints. These constraints are:
Account can be used for only transaction purposes and not for business purposes. Clients can
draw a maximum number of two cheques per week; exceeding this number will forfeit the
interest for the month. If withdrawing amount is more than one fourth of the total deposit then
the client undergo a loss of profit for that specific month. Services that offered to this account
are almost similar to that of current account. The savings accounts/deposits Interest Rate is
6.25% for general, 6.50% for wage earners
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Nature of Savings Bank Deposit Account (SB):
» To maintain smooth and certain life in future savings account is very suitable for middle
class group.
» The attributes of savings account are: 1000/-is the minimum amount of initial deposit.
» Clint cannot withdraw the money more then twice a week,
» The profit rate is 6.25% against savings money.
» SB deposit attracts interest.
» Client is not at large to withdraw deposit without prior notice.
» Interest is suspended if withdrawal rule is broken.
» Withdrawal rule is consisted of number of withdrawal per week/ month and percentage of
balance.
»Account closing charge Tk. 100/-
» No charge up to average balance of Tk.5000/-
»Mutual trust bank Ltd. Takes service charge Tk 200/- half yearly on each account incase of
average balance more then Tk.5000/-.
SHORT TERM DEPOSIT ACCOUNT:
The purpose of this account is clear from its very name. Short Term Deposit Account is a
mixture of flexibility and a return on deposit like savings account. This type of account holder
enjoys the privilege of both the current and savings account. The interest rate available to this
type of account holder is lower than that of the savings account. The short term deposits
Interest Rate is 7.0%
Nature/ Attributes of Short Term Deposit Account (STD):
» It’s a certain period deposited system, which is not repayable before the maturity date of the
fixed period. Mutual Trusty Bank offers higher rates of profit on such deposits.
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» Usually customers are allowed to open this account for a certain period and the rate of profit
in accordance’s with the terms of the deposits. The features of MTB as follows
» By nature this deposit is not featured with issuance of cheque book.
» Depositor requires serve 7 days prior notice to transfer fund to his checking deposit account.
» STD account allows interest on daily product basis.
» Mutual trust bank Ltd. Takes service charge Tk 500/- half yearly on each account
irrespective of balance.
» Account closing charge Tk. 500/-
» 7.00% profit rate against STD
» No restriction over withdrawal of money
» Tk. 5000/- is the minimum balance.
FIXED DEPOSIT ACCOUNT:
Fixed deposit is one, which is repayable after the expiry of a predetermined period fixed `by
him. Any one in any time open fixed deposit account to deposit any amount. Its time period is
1,3,6,12,24 and above 24 month, this product is very much popular in banking arena for
surplus spending unit. . Hence, it is a popularly known as ‘Time Deposit’ or ‘Time
Liabilities”. Normally the money on a fixed deposit is not repayable before the expiry of a
fixed period. This deposit is one way trafficking system i.e. deposit is received for once for
specific period and refunded with up to date interest on maturity. These deposits are not
repayable on demand but they are withdraw able subject to a period of notice. Premature
encashment may resultant loss of interest If the depositor wanted to Brock up his or her
deposit account before maturity date and before one year that moment he or she could not
found any kind of interest, if its time period should have one year but before maturity date that
moment depositor could found in interest rat like as savings account .e.g. 6.25%. After
maturity period the Bank cut tax and excise duty. The depositor can found loan from 90%
deposit amount.
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Locker Service:
MTBL Bashundhara City Branch is providing facility of locker service for the purpose of
safeguarding the valuable property of customers. The person or organization that has any
account in bank branch can enjoy this service. They keep their valuable assets in banker’s
custody. Customers have right to look after with a key of their individual locker provided by
bank. MTBL maintains the following types of lockers:
Large locker.
Medium locker.
Small locker.
For enjoying this service, clients have to give charge yearly Tk.2500/-, Tk.2000/- and
Tk.1500/- for large, medium and small locker respectively.
Accounts Department
Accounts Department is play most vital role in Banking. Accounts Department is a
department with which each and every department is related. It records the profit & loss A/C
and statement of assets and liabilities by applying “Golden Rules” of book-keeping. The
functions of it are theoretical & computerized based. MTBL Bashundhara City Branch records
its accounts daily, weekly, and monthly every record. MTBL Bashundhara City Branch
Accounts Department in Charge: Mr. Tanvir Ahmed Chowdhury, Junior Officer and Mr.Shek
Mushfiqur Rahman, Assistant Officer.
This entire executive’s helps me a lot in my internship program at MTBL. They didn’t guide
me as an Internee; they guide me as a training officer of MTBL to gather practical knowledge
about Banking. They tried their best to inform me everything about accounts department. I
hope I knew everything that gave me as a new comer in banking sector.
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Basically Accounts Department is not alone. Accounts department is a mix of as follows:
1. Cash
2. Transfer
3. Clearing
CASH
Mr. Mir Tanvir Wahid, Assistant Officer, Ms. Tasin Jamin, Assistant Officer and Ms. Shaina
Sultana Afrin, Assistant Officer, is the cash in charge. Both of the three assistant officer
help’s me lot to get practical knowledge and prepare this report. The cash section of any
branch plays very significant role in Accounts Department. Because, it deals with most liquid
assets the MTBL Bashundhara City Branch has an equipped cash section. This section
receives cash from depositors and pay cash against cheque, draft, PO, and pay in slip over the
counter. Every Bank must have a cash counter where customer withdrawn and deposit there
money. When the valued client’s deposit their money at the cash counter they must have to
full fill the deposit slip his/her own, then they sing as the depositor option’s then they deposit
their money through cash officer at the cash counter.
SEVERAL TYPES OF DEPOSIT SLIP
There are several types of deposit slip as follows:
Current Deposit A/C Slip,
Saving’s Deposit A/C Slip,
Festival Deposit A/C Slip,
Brick By Brick Deposit A/C Slip,
Pay order Slip,
Demand Draft Slip,
T.T. Slip.
After paying this kind’s of slip, the valued client waits for the deposit slip book out side of the
cash counter. The cash officer deposit the money in there account through computer software,
while the depositors account credited, then the cash officer put a seal in the deposit slip and
return it to the client.
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RECEIVING CASH:
Any people who want to deposit money will fill up the deposit slip and give the form along
with the money to the cash officer over the counter. The cash officer counts the cash and
compares with the figure written in the deposit slip. Then he put his signature on the slip
along with the ‘cash received’ seal and records in the cash receive register book against A/C
number. At the end of the procedure, the cash officer passes the deposit slip to the counter
section for posting purpose and delivers duplicate slip to the clients.
Account treatment:
Cash A/C--------------------- Dr.
Customer’s A/C------------- Cr.
DISBURSING CASH:
The drawn who wants to receive money against cheque comes to the payment counter and
presents his cheque to the officer. He verifies the following information:
Date of the cheque
Signature of the A/C holder
Material alteration
Whether the cheque is crossed or not
Whether the cheque is endorsed or not
Whether the amount in figure and in word correspondent or not
Then he checks the cheque from computer for further verification. Here the following
information is checked:
Whether there is sufficient balance or not.
Whether there is stop payment instruction or not.
Whether there is any legal obstruction (Garnishee Order) or not.
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After checking everything, if all are in order the cash officer gives amount to the holder and
records in the paid register.
Account treatment:
Customer’s A/C Dr.
Cash A/C Cr.
The cash section of MTBL deals with all types of negotiable instruments, cash and other
instruments and treated as a sensitive section of the bank. It includes the vault which is used as
the store of cash instruments. The vault is insured up to Tk. 60 lacs. If the cash stock goes
beyond this limit, the excess cash is then transferred to Principle Branch Office. When the
excess cash is transferred to MTBL Principle Branch Office the cash officer issues IBDA.
Accounting treatment:
MTBL General A/C Dr.
Cash A/C Cr.
When cash is brought from MTBL Principle Branch Office
Accounting treatment:
Cash A/C Dr.
MTBL General A/C Cr.
TRANSFER
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Transfer is not a critical sector in banking but it is very important. Transfers play a vital role
in banking sector. So now we have to know what transfer is: basically transfer is a type of
register maintaining matter. In this register officer write down every day transactions in Debit
and Credit side then the officer calculate both the side of the register if both side shown same
amount, it means that the total day’s transaction is completely okay.
CLEARING
Clearing is one of the magical parts of banking. I really enjoyed this part of the accounts
department and banking sector. In Mutual Trust Bank Limited clearing in charges Mr. Adrian
Obhidut Adhikary (Officer), I did work with him.
Nature of clearing house:
1st Clearing House
Return Clearing House
Clearing House Process:
Every bank has an officer of clearinghouse who is work with Bangladesh Bank clearing
house. Actually most of major client deposit their account in different kinds of bank cheques.
Clearing officer check all the cheques and deposit slip very carefully and then he received the
cheque. After that the clearing officer posting all the cheques in computer software which is
recognized through Bangladesh bank computer department. Then clearing officer seal all the
cheques in advance date after that the officer endorsement all the cheques and sign all the
cheques. All the cheques are posted in the computer by branch wise, then officer print the
entire document and staple all the cheques by branch wise this is called schedule of clearing
house. It is a very difficult job to staple all the cheques, because some time’s the cheques are
huge in quantity, it may be 250 to 400, this is very vital job because every cheque must have
to staple very carefully, it means cheque amount and the print sheet amount and cheque
branch must have to be same. If the cheques staple in wrong direction, the cheque may be
return from another bank, that’s why MTBL not to be able to credited party account.
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Then the clearinghouse officer copying all the document in two floppy dist as per Bangladesh
Bank requirement. When the clearing officers enter the clearinghouse, his first job is that the
floppy delivered to the Bangladesh Bank computer department.
All of the procedure the clearing in charge goes to the Bangladesh Bank clearing house before
10 am in the morning. The clearing officer checks all the bank’s cheque and he put all the
cheques in bank wise, like as this another bank’s delivered their cheques in MTBL desk. Then
the officers of MTBL have to calculate all the cheques by using calculator machine, Staple pin
remover, and then he divided all the cheques as MTBL Branch wise.
Corporate Social responsibility of MTBL:
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MTB knows that to be an unbeaten entity it must act reliably and with honesty in all areas of
its operations. We are committed and liable to the business operations throughout the country,
which are being conducted in a manner that is consistent with pertinent good practice in
relation to social responsibility. It is the responsibility of everyone working within the
company to ensure that wherever we operate in the country, we are aware of delivering what
we have already promised. Our commitments and their objectives have been cited to align
with the priorities across our responsibilities towards our Employees, our Environment and
our Community. Throughout 2009, MTB has participated and encouraged various initiatives
highlighting our aims as mentioned above. We believe it is a continual improvement process
and shall hopefully culminate throughout the entire business community and the country.
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Chapter: 3
Performance Evaluation of MTBL
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Section: - A
General Banking
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General Banking
Financial institution/ intermediary that mediates or stands between ultimate borrowers and
ultimate lenders is known as banking financial institution. Banks perform this function in two
ways-
1. Taking deposits from various areas in different forms and
2. Lending that accumulated amount of money to the potential investors in other
different forms.
General Banking is the starting point of all the banking operating. General Banking
department aids in taking deposits and simultaneously provides some ancillaries
services. It provides those customers who come frequently and those customers
who come one time in banking for enjoying ancillary services. In some general
banking activities, there is no relation between banker and customers who will take
only one service form bank. On the other hand, there are some customers with who
bank are doing its business frequently. 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 cheques. It opens new accounts,
demit funds, issue bank drafts and pay orders etc. since bank in confined to
provide the service everyday general banking is also known as retail banking.
General Banking consists of the many sections in the branch. These are:-
Customer Service.
Account opening section.
Deposit section.
Cash section
Remittance section
Clearing section
Account section
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General Service for the customer of MTBL
Professional merit and Competency, Flexibility, Determination and Dedication are the core
resources that MTBL consider to be of paramount importance for building a client oriented
modern banking. Customer satisfaction is MTBL foremost professional undertaking.
Therefore, a satisfied client is MTBL precious product and they consider them MTBL
ambassador in the market. MTBL provide different types of services to the customer these
are:
Balance confirmation service
Statement of the account provide within a minute
Verified the account statement and provide the certificate
Telephone service
Documents register service
Accounts Opening Section:
Deposit forms the life-blood of a commercial bank. It cannot carry on its business only with
its own capital. It accepts deposit from the customers on the one side and lends it to other
borrowers / customers on the other side and by this way it earns some margin of interest
which is one of the most important remunerative sides of its business.
Bank deposit can broadly be classified into the following two categories: -
The sources of fund of commercial bank are the deposit. There have some types of deposit
accounts.
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Types of accounts
Name of accountsMinimum amount
of an accountRate of interest
Interest payable period
Savings A/C 1100 5.25% Half yearly
Current A/C 1600 Nil Nil
Small Loan A/CNo minimum
amount because it is an loan A/c
Nil Nil
STD (short term deposit) A/C
No minimum amount because it is
an loan A/c4.75% Yearly
Equity A/CNo minimum
amount because it is an loan A/c
Nil Nil
FDR:
Rate of interest Interest payable period5.50% For 1 month
9% For 3 to 6 months9% For 6 months to 1 year
9.25% For 1 year to 2 year
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Procedures for opening an account
It is said that, there is no banker customer relationship if there is no A/C of a person in that
bank. By opening an A/C banker and customer create a contractual relationship. However,
selection of customer for opening an account is very crucial for a bank.
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Applicant fills up the relevant application form in the prescribed manner.
He/she is required to fill up the specimen signature card.
For individual introduction is needed by an account holder.
The authorization officers scrutinize the introduction and examine the documents submitted.
Issuance of deposit slip and the deposit must be made in cash. No cheque or draft is acceptable to the bank.
After depositing the cash one cheque book & a pay-in-slip book is issued.
ACCOUNT IS OPENED.
For individual
Filling up the account opening form which contains the information such as:-
Name of Branch.
Date
Title of the account
Special instruction
Name
Occupation
Address
Describe of initial deposit
Verification of the introducer
Specimen signature card contains: -
Title of accounts
Specimen signature of the guarantor of the account.
Allotment of account number.
Pay in slip contains filling up of all the particulars account and cash tendered for deposit.
Voucher marked new account.
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Partnership firm
a) The consent of all partners.
b) Partnership deed
c) Mandate
The name of the person who will authorized to operate the account
The extent of authority given to such person
Personal account and a firm’s account
Creation of mortgage
The retirement of partner
The death of a partner
The insolvency / insanity of a partner.
A joint Stock Company
a) Certificate of Corporation
b) Memorandum of association and articles of association
c) Certificate of commencement of business
d) Balance sheet and profit and loss statement
e) The board resolution
f) Mandate
In case of limited Company
i) Certified copy of the memorandum and Articles of Association of the company
ii) Certificate of Incorporation of the company for inspection and return with a duly
certificate photocopy for bank’s records.
iii) Certificate from Registrar of the joint stock Companies that the company is
entitled to commerce business (in case of public limited company for inspection
and return) along with a duly certificate photocopy for bank’s records.
iv) Copy of the latest balance sheet.
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v) Resolution passed in the general meeting of the company for opening of the A/C
and authorization for its operation duly certified by the Chairman/Managing
director of the company.
vi) List of directors with address.
vii) Authorized signatures (s).
General Rules
General rules practiced in Mutual Trust Bank, Bashundhara City Branch regarding operation
of Current and saving account are follows: -
i) A minimum balance of TK.1100 and Tk.1600 must be maintained in the savings
and Current A/C respectively.
ii) A depositor, in general, can withdraw money two times in a week. In case
withdrawal more than two times, no interest is paid to the balance of a saving
account for that month.
iii) Interest rate for saving account is 5.25%
Cheque Book
Types of Cheque Book’s:
Savings Account – 10 Leaves
Current Deposit Account – 25 Leaves (CDTF)
Current Deposit Account – 50 Leaves (CDF)
NB: CDTF: Current Deposit Twenty Five
CDF: Current Deposit Fifty
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Cheque Book’s requisition slip
Customers Service Officer receives these types of slip from the client’s and after three days
MTBL gives the cheque books to the customer, because all cheque books come from the head
office and it’s the new rule imposed by the Bangladesh Bank.
A cover file containing the requisition slip is effectively preserved as vouchers. If any defect
is noticed by the ledger keeper, he makes a remark to that effect on the requisition slip and
forward it to the cancellation officer to decide whether a new checkbook to be issued to the
customer or not.
Issue of new checkbook (for old account):-
All the procedure for issuing a new check book for old account is same as the procedure of
new account. Only difference is that customer has to submit the requisition slip of the old
check book with date, signature, and his/her address. Computer posting is then given to the
requisition slip to know the position of account and to know how many leafs still not used.
The number of new check is entered on the back of the old requisition slip and is signed by
the officer.
Steps for issuing check book after Loss of the previous Cheque book
1. Notice the bank to step the correspondence of that check book.
2. G.D (general dairy) in police station.
3. Provide adhesive stamp at TK.150. for legal agreement.
When the bank is convinced with having above documents bank provides the
customer a new cheque book.
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Deposit section
Deposit is the lifeblood of a bank. From the history and origin of the banking system we know
that deposit collection is the main function of a bank.
Accepting deposit
The deposit that are accepted by MTBL like other banks may be classified in to :
a) Demand Deposit.
b) Time Deposit
a)Demand deposit:
These deposits are withdrawn able without notice, e.g. current deposit.
MTBL accepts demand deposit through the opening of:-
i. Current account
ii. Savings account
iii. Call deposit from the fellow bankers.
b) Time Deposit:
A deposit which is payable at a fixed date or after a period of notice is a time deposit.
MTBL accepts time deposits through a Fixed Deposit Receipt (FDR), Short term Deposit
(STD), and Bearer Certificate Deposit (BCD) etc.
While accepting these deposits, a contract is done between the bank and the customer.
When the banker opens an account in the name of a customer, there arises a contract
between the two. This contract will be valid one only when both the parties are competent
to enter into contracts. As account opening initiates the fundamentals relationship and
since the banker has to deal with different kinds of persons with different legal status,
MTBL officials remain very much careful about the competency of the customers.
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Fixed Deposit:
The local Remittance section of MTBL also issues FDR. They are also known as time
deposit or time liabilities. These are deposits, which are made with the bank for a fixed
period, specified in advance. The bank need not maintain cash reserve against these
deposits and therefore, the bank offers higher of interest on such deposits.
Cash section:-
Banks, as a financial institution, accepts surplus money from the people as deposit and
give them opportunity to withdraw the same by check, etc. But among the banking
activities, cash department plays an important role. It does the main function of the
commercial bank i.e. receiving the deposit and paying the cash on demand. As this
department deals directly with the customers, the reputation of the bank depends much on
it. The functions of cash department are describe below:-
Functions of Cash Department
Cash Payment
1. Cash payment is made only against check.2. This is the unique function of the banking system, which is known as “payment on demand”.3. It makes payments only against its printed valid check.
Cash receipt
1. It receives deposits from the depositors in form of cash.2. Receive utility bills and voucher entry to appropriate A/C.3. It collects money only its receipt forms.
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Cash Packing:
After the banking hour cash is packed according to the denomination. Notes are counted and
packed in bundles and stamped with initial.
Allocation of currency:
Before starting the banking hour all tellers give requisition of money through “Teller cash
proof sheet”. The head teller writes the number of the packet denomination wise in “reserve
sheet” at the end of the day, all the notes remained are recorded in the sheet.
Stopped checks
In case of stopped checks, the following formalities are done-
The accountant keeps the ‘Stopped-check Register’ and reserved the pertinent
documents.
Immediately on receiving a letter or telegram to stop payment of the check, the time of
its receipt is noted down in the register under the initial of the accountant.
The ledger keeper concerned and the passing officials are also informed immediately.
The computer operator concerned gives a “STOP” marking in the computerized cash
system against the stopped check.
Locker Service:
Mutual Trust Bank, Bashundhara City Branch is providing ‘Locker Service’ facility for the
purpose of safeguarding the valuable property of the customers.
The person or organization that has any account in the bank branch enjoys this service. The
account holder can keep his valuable assets in the bank’s custody. Customers have right to
look after with a key of their individual locker provided by bank for enjoying this service,
clients have to pay charge yearly TK.3500, 2000, 1500 for small, medium or small locker
respectively.
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Remittance section:
Carrying cash money is troublesome and risky. That’s why money can be transferred from
one place to another place to through banking channel. This is called remittance. Remittances
of funds are one of the most important aspects of the commercial banks in rendering service to
its customers.
Types of remittance:-
Between banks and no banks customer
Between banks in the same country
Between banks in the different centers
Between bank and central bank in the same country
Between central of different customers.
The main instruments used by the MTBL for remittance of fund are:
Payment order (PO)
Demand Draft (DD)
Telegraphic Transfer (TT)
The basic three types of local remittance are discussed below:
Points Pay Order Demand Draft TT
Explanation
PAY order gives the payment to the right to claim payment from the
issuing bank.
Demand Draft is an order of issuing bank on another branch of the same bank to pay specific sum of money
to payee on demand.
Issuing branch requests another branch to pay specific money to the specific payee on demand by
Telegraph/ telephone.
Payment from
Payment from issuing branch only.
Payment from ordered branch.
Payment from ordered branch.
Generally used to
remit fund
Within the clearing house area of issuing
branch.
Outside of the clearing house of issuing branch.
Payee can also be the purchaser.
Anywhere in the country.
Payment process of the paying
bank
Payment is made through clearing.
1. Confirm that DD is not Forged one.
2. Confirm with sent advice.
3. Check the ‘Test Code’.4. Make payment.
1. Confirm issuing branch2. Confirm payee A/C
3.Confirm amount4. Make payment
4. Receive advice.
charge Only commissionCommission + telex
chargeCommission + Telephone
Clearing Section
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Cheques, Pay Order (PO), Demand Draft (DD) collection of amount of other banks on behalf
of its customers are a basic function of a clearing department.
Clearing:
Clearing is a system by which a bank can collect customers fund from one bank to another
through clearing house.
Clearing House:
Clearing House is a place where the representatives of different banks get together to
receive and deliver cheques with another banks.
Normally, Bangladesh bank performs the Clearing House in Dhaka, Chittagong, Rajshahi,
khulna, & Bogra. Where there is no branch of Bangladesh bank, sonali bank arrange this
function.
Member of Clearing House:
MTBL is a scheduled Bank. 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. The
scheduled banks clean the cheque drawn upon one another through the clearing house.
Types of clearing:
A. Outward Clearing:
When the Branches of a bank receive cheque from its customers drawn on the
order Banks within the local clearing zone for collection through clearing house, it
is Outward Clearing.
B. Inward Clearing:
When the banks receive cheque drawn on them from other banks in the clearing
House, it is Inward Clearing.
Types of Clearing House:
There are two types of clearing house. These are:-
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1) Normal clearing house
2) Same day clearing house.
1. Normal clearing house:
a) 1st house: 1st house normally stands at 10 a.m. to 11 a.m.
b) 2nd house: 2nd house normally stands after 3 p.m and it is known as return house.
2. Same day clearing house:
a) 1st house: 1st house normally stands at 11 a.m. to 12 p.m.
b) 2nd house: 2nd house normally stands after 2 p.m. and it is known as return house.
Who will deposit cheque for clearing: - Only the regular customers i.e. who have
Savings, Current, STD &Loan Account in the bank can deposit cheque for collection
of fund through clearing house.
Precaution at the time of cheque receiving for Clearing, Collection of LBC, OBC
& Transfer:
1) Name of the account holder same in the cheque & deposit slip.
2) Amount in the cheque & deposit slip must be same in words & in figure.
3) Date in the cheque may be on or before (but not more than six months back)
clearing house date.
4) Bank & Branch name of the cheque, its number &date in the Deposit Slip.
5) Cheque must be signed.
6) Signature for confirmation of date, amount in wirds / in figure cutting & mutilation
of cheque.
7) Cheque should be crossed (not for bearer cheque).
8) Account number in the deposit slip must be clear.
9) Depositor’s signature in the deposit slip.
Return house:
Return house means 2nd house where the representatives of the Bank meet after 3 p.m.
to receive and deliver dishonored cheque, which placed in the 1st clearing house.
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Dishonoring Cheque:
1) Insufficient fund.
2) Amount in figure and word differs.
3) Cheque out of date / post-dated.
4) Payment stopped by the drawer.
5) Payee’s endorsement irregular / illegible / required.
6) Drawer’s signature differs / required.
7) Crossed cheque to be presented through a bank.
8) Other specific reasons not mentioned above.
The dishonor cheque entry in the Return Register & the party is informed about it.
Party’s signature required in the return register to deliver the dishonor cheque. After duration,
the return cheque is sent to the party’s mailing address with Return Memo.
If the chaque is dishonored due to insufficiency of funds then MTBL charges TK.25 as
penalty.
Responsibility of the concerned officer for the Clearing cheque: -
1) Crossing the cheque.
2) (Computer) posting of the cheque.
3) Clearing seal & proper endorsement of the cheque.
4) Separation of cheque from deposit slip.
5) Sorting of cheque first bank wise and then on branch wise.
6) Computer print first branch wise and then bank wise.
7) Preparation of 1st Clearing Hose validation sheet.
8) Examine computer validation sheet with the deposit slip to justify the computer
posting.
9) Copy of computer posting in the floppy disk.
Bills Collection:
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In modern banking, the mechanism has become complex as far as smooth transaction and
safety is concerned. Customer does pay and receive bill from their counterpart as a result of
transaction. Commercial bank’s duty is to collect bills on behalf of their customer.
Types of Bills for Collection:-
Outward Bills for Collection (OBC).
Inward Bills for Collection (IBC).
Outward Bills for Collection (OBC)
OBC means outward Bills for Collection. OBC exists with different branches of different
banks outside the local clearing house. Normally, two types of OBC:-
1) OBC with different branches of other banks.
2) OBC with different branches of the same bank.
Procedures of Outward Bills for Collection (OBC)
1. Entry in the OBC register.
2. Put OBC number in the cheque.
3. “Crossing Seal” on the left corner of the cheque & “ Payees account
will be credited on relization” seal on the back of the cheque with
signature of the concerned officer.
4. Dispatch the OBC cheque with forwarding.
5. Reserve the photocopy of the cheque, carbon copy of the forwarding
and deposit slip of the cheque in the OBC file.
Inward Bills for Collection (IBC):
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When the banks collect bills as an agent of the collecting branch, the system is known as IBC.
In this case the bank will work as an agent of the collection bank. The branch receives a
forwarding letter and the bill.
Procedures of Inward bills for collection (IBC):-
1. IBC against OBC: To receive the OBC cheque first we have to give entry in the
IBC register. The IBC number should put on the forwarding of the OBC with date.
2. Deposit of OBC amount:- OBC cheque amount is put into the “ Sundry deposit-
sundry Creditors account ”, prepare debit & credit voucher of it. If the OBC cheque is
honored, send credit advice (IBCA) with signature & advice number of the concern
branch for the OBC amount.
3. Again place in the clearing house or send the OBC cheque with Return Memo to
the issuing branch according to their information.
Accounts Section:-
Accounts section is a section with which each and every department / section is related. It
records the Profit &Loss A/C, statement of Assets and Liabilities by applying “ Golden
Rules” of Book Keeping. The functions of this section are theoretical based. Mutual Trust
Bank, Bashundhara City Branch records its accounts daily, weekly and monthly. And every
record is sent to head office keeping photocopy for its record.
Now a days under computerized banking system the job of accounts department become very
easy. Now computer prepare the clean cash statement and the supplementary statements on
party ledger vouchers. The accountants need not to prepare manually.
Clean Cash
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Clean cash is a statement of the different transactions takes place in a day. The book in which
the statement is written is called ‘Clean Cash Book’. So, we can say that ‘Clean Cash Book’ is
the abstract of each day’s transactions classified under the general Ledger headings. We can
also say that clean cash is the summary of vouchers prepared in a day. So preparing clean cash
is very important for a bank to know about the transactions take place in a day. Clean cash
book is written to-
Test the arithmetical accuracy of no days transaction.
Consolidate one day’s transaction
Help posting in the general ledger
Test the closing cash balance of the branch.
Procedures for writing the Clean Cash book are as follows:
1. The officer responsible for writing the Clean Cash Book must, before taking figures from
the subsidiary books / day books, confirm that the books duly checked and authenticated by
the authorized.
2. An authorized supervising official who will agree the entries under each head with the
respective register / day books should check the Clean Cash Book daily from the subsidiary
registers/day books.
3. Each morning the manager will scrutinize all vouchers of the previous days.
4. After obtaining the daily balance, the Cash Book writer will collect all vouchers and hand
them over to a supervising official who will lack them up over night, under protection from
fire, together with all current records.
Statement of the Affairs:
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Accounts section prepares the ‘Statement of Affairs’ for finding the Profit/Loss as well as
amount of assets and the liabilities of the concerned branch. Theoretically, it is called financial
statement and has two parts. Such as-
1. Income and Expenditure A/C.
2. Statement of assets and liabilities.
The function of the accounts department can be divided into two parts: -
The functions of the accounts department can be divided into two parts:-
Daily Functions
Periodical function.
Daily Functions
Daily functions include the preparations of ‘Supplements Statements’ of all day-to-day
operations. In Mutual Trust Bank, Bashundhara City Branch, as a computerized branch,
computer prepares ‘Supplementary Statement’, Trial Balance’, advice of general A/C and
general statement. In absence of computerized system, this department has to perform these
functions manually.
Accounts department prepares the supplementary and getting the supplementary statement
from the computer operator, the accountant check and verifies the transactions in comparison
to the daily trial balance produced by the computer. This is the final checking of the
transactions. If any wrong posting if found the accountant rectifies it by passing reserve
voucher.
Periodical Functions
Periodical functions of accounts department include the preparation of different weekly,
monthly, quarterly and annual statement. The accounts department prepares the following
statements:
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1. Statement of daily transaction
2. End of day report
3. Monthly statement of deposits loans & advances, profit and loss etc.
4. Quarterly statement of deposits, loans & advances, profit and loss etc.
5. Yearly statement of deposits, loans & advances, profit and loss etc.
6. Yearly statement of classified loans & advances.
7. Statement of Affairs.
8. Yearly budget of the Branch, etc.
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Section: BFOREIGN EXCHANGE
DEPARTMENT
53
After finishing the general banking, I have performed my duties in the Foreign Exchange
Department. Foreign trade Financing is an integral part of banking business. MTBL offers two
types of credit facilities to its customers. Such as-
a) Funded Credit and
b) Non Funded Credit
a) Funded Credit:
The credit facility in which the fund of the bank is directly invested is known as funded credit.
Such as-Cash Credit, Secured Overdraft act.
b) Non Funded Credit:
The credit facilities in which bank’s funds are not directly invested are known as non-funded
credit. Such as- Letter of Credit (L/C), Guarantee etc.
Letter of Credit / Documentary Credit (“L/Cs”) is the key player in the foreign exchange
business. With the globalization of economy. International trade has become quite
competitive. Timely payment for exports and quicker delivery of goods is, therefore, a pre-
requisite for successful international trade operation. Growing complexity of international
trade, separation of commercial parties across the globe etc. underlined the need for evolving
a system that balances between the expectations of the seller and the buyer. Documentary
Credit has emerged as a vital system of trade payment, and fulfilled the requisite commercial
need. This system substantially reduces payment-related risks for both exporter and importer.
Thus the letter of credit is the classic form of international export payment, especially in trade
between distant partners. Payment, acceptance or negotiation of the credit is made by the bank
upon presentation by the seller of stipulated documents (e.g., bill of lading, invoice, inspection
certificate).
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The Importer(Buyer of Goods)
The Bank (Third
Party)
The Exporter(Seller of Goods)
The Buyer The Seller
The Buyer The Issuing Bank
The Issuing
Bank
The Beneficiary
DOCUMENTARY CREDIT / LETTER OF CREDIT (L/Cs):
Documentary Credit or letter of credit is nothing but a letter of assurance of payment. This
assurance of payment is made by the bank. It is an arrangement under which the bank at the
request of the buyer undertakes to make payment to the seller provided specified documents
are submitted.
Documentary Credit is an arrangement whereby a bank (issuing bank) acting at the request
and on the instruction of a customer (the applicant) or on its own behalf undertakes to make
payment to or to the order of a third party (the beneficiary) or to accept and pay bills of
exchange (draft) drawn by the beneficiary, or authorize another bank to negotiate against
stipulated documents provided the terms and conditions to the credit are complied. Thus,
Documentary Credits are akin to bank guarantees. In popular language, they are known as
Letters of credit (L/Cs). Bank guarantees are, however, issued to cover situation of non-
performance whereas documentary credits are issued on behalf of the buyer to cover situation
of performance, i.e., the issuing bank agrees to make payment to the beneficiary one he
surrenders the requisite complying documents. Thus, Documentary Credit offers a unique and
universally used method of achieving a commercially acceptable arrangement by providing
for payment to be made against complying documents that represent the goods and making
possible the transfer of those goods.
Sales Contract
Reimbursing Agreement
Documentary Credit Agreement
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Negotiating Bank(Singapore)
Foreign Exchange Business is a crucial and complex business all over the world. Fraud and
forgery may arise in every sphere of this business. To overcome that misshapenness and to
settle international disputes, a legal framework is a must. An apex body is doing these
functions named International Chambers of Commerce (ICC). The publication made by the
ICC is treated as compulsory law for each and every country. Among many publications,
publications no.500 is related to L/C opening and such other purposes.
BANKS AS A PARTY OF DOCUMENTARY CREDIT:
Parties to the documentary credit are-an issuing bank, an advising bank, a confirming bank, a
reimbursing bank or negotiating banks.
Issuing Bank: The Issuing Bank or the Opening Bank is one which issues the credit,
i.e., undertakes, independent of the undertaking of the applicant, to make payment provided
the terms and conditions of the credit have been complied with. The payment may be at sight
if the credit provides for sight payment or at maturity dates if the credit provides for deferred
payment. Especially the issuing bank should satisfy himself on the credit worthiness of the
applicant. The credit application must be in accordance with the Uniform Customs and
practices for Documentary Credit (UCPDC) - ICC publication no. 500 edition of 1993.
Advising Bank: The Advising Bank advises the credit to the beneficiary
authenticating the genuineness of the credit. The advising bank is generally situated in the
country/place of the beneficiary.
Issuing Bank (Bangladesh)
Advising Bank (Singapore)
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Reimbursing Bank(Japan)
Confirming Bank : A Confirming Bank is one which adds its guarantee to the credit
opened by another bank, thereby undertaking the responsibility of payment / negotiation /
acceptance under the credit in addition to that of the issuing bank. A confirming bank
normally does so if requested by the issuing bank. When the creditworthiness of the issuing
bank is in doubt, beneficiary’s bank may request the issuing bank to give additional
confirmation by another bank. It is said, ‘Add Confirmation’ in practice.
Negotiating Bank : A Negotiating Bank is the bank nominated or authorized by the
issuing bank to pay, to incur a deferred payment liability, to accept drafts or to negotiate the
credit.
Reimbursing Bank: A Reimbursing Bank is the bank authorized to honor the
reimbursement claims in settlement of negotiation / acceptance / payment lodged with it by
the negotiating bank or accepting bank. It is normally the bank with which the issuing bank
has account from which payment is to be made. Reimbursement claims in foreign exchange
business is settled by the Uniform Rules for Reimbursement (URR)-ICC publication no. 525.
The Foreign Exchange Department is mainly divided into three sections. Such as-s
1. Import Section
2. Export Section &
3. Remittance Section
The import Section deals with L/C in the perspective of the importers and the Export Section
deals with L/C in the perspective of the exporters.
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MTBL Bashundhara City Branch
Foreign Exchange Department
ImportSection
Export Section
RemittanceSection
IMPORT SECTION
Import is the flow of goods and services purchased form one country to another. Hence,
import of merchandise essentially involves two things: bringing of goods physically into the
country and remittance of foreign exchange towards the cost of the merchandise and services
connected with this to the importer. In case of import, the importers are asked by their
exporters to open letters of credit so that their payment against goods is ensured.
Fig : Types of Importers
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Importer
Public Sector(Govt. Organs. &
Company
Private
Sector
Commercial
(finished
Industrial (raw
materials,
Actual
Users
IMPORT PROCEDURE:
An importer is required to submit the following documents in order to get a license to import
through MTBL Bashundhara City Branch.
A bank account with the branch
Import Registration Certificate (IRC)
Tax Payer’s Identification Number (TIN)
Performa Invoice / Indent
Membership certificate from a recognized Chamber of Commerce & Industry or
Town Association or registered Trade Association
Letter of Credit Authorization (LAC) Form properly filled in quintuplicate
signed by the importer.
L/C Application duly signed by the importer.
One set of IMP Form.
Insurance Cover Note with money receipt
VAT Registration Certificate (for Commercial Importers)
In case of public Sector, attested photocopy of allocation letter issued by the
allocation authority, Administrative Ministry or Division specifying the source,
amount, purpose, validity and other terms and conditions against the imports
Any such documents as may be required as per instruction issued/to are issued
by the Chief Controller of Imports & Exports (CCI&E) from time to time.
On receipt of the LCA Form and the other documents, the branch officials carefully
scrutinize the documents and lodge the same in their respective registration books and duly
verify the signature of the importer put on the LCA Form.
PROPOSAL FOR OPENINGOF L/C
59
In case of an L/C of a small amount only the prescribed application form, i.e., the LCA Form
is enough to open an L/C. But when the L/C amount is reasonably high or where the party
intends to avail a credit facility, then the importer needs to submit an application to the
Foreign Exchange Department for getting a limit of the L/C amount.
The salient features of the application are
Full particulars of the bank account
Nature of business
Required amount of limit
Payment terms and conditions
Goods to be imported
Offered security
Repayment schedule
THE L/C APPLICATION FORM:
L/C Application form is a sort of an agreement between customer and bank on the basis of
which the letter of credit is opened. MTBL Bashundhara City Branch provides a printed form
for opening of L/C to the importer. A special adhesive stamp of value Tk. 150 is affixed
on the form in accordance with Stamp Act in force. While opening, the stamp is cancelled.
Usually the importer expresses his decision to open the L/C quoting the amount of margin in
percentage (Some L/C’s are opened for 100% margin).
Usually the importer gives the following information
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Full name and address of the importer
Full name and address of the beneficiary
Draft amount
Availability of the credit by sight payment/acceptance/negotiation/deferred payment.
Time bar within which the documents should be presented.
Sales contracts based on Inco terms (CIF/FOB/CFR).
Brief specification of commodities, price, quantity, indent no. etc.
Country of origin.
Bangladesh Bank registration no.
Import License / LCAF no.
IRC no.
Account no.
Documents no.
Insurance Cover Note / Policy no., date, amount
Name and address of Insurance Company.
Whether the partial shipment is allowed or not.
Last date of shipment.
Last date of negotiation.
Other terms and conditions (if any)
Whether the confirmation of the credit is requested by the beneficiary or not. The L/C
application must be completed /filled properly and signed by the authorized person of the
importer before it is submitted to the issuing bank.
THE LETTER OF CREDIT AUTHORIZATION FORM (LCAF)
61
The Letter of Credit Authorization Form (LCAF) is the form prescribed for the authorization
of opening letter of credit/payment against importer and used in lieu of import license. The
authorized dealers are empowered to issue LCA Forms to the importers as per basis of
licensing of the import Policy Order in force to allow import into Bangladesh. If foreign
exchange is intended to be bought from the Bangladesh Bank against an LCAF, it has to be
registered with Bangladesh Bank’s Registration Unit located in the concerned area office of
CCI&E. The LCA Forms available with authorized dealers are issued in set of five (05) copies
each. First Copy is exchange control copy, which is used for opening of LC and effecting
remittance. Second Copy is the custom purpose copy, which is used for clearance of imported
goods from custom authority. Triplicate and Quadruplicate Copy of LCAF are to be sent to
concerned area of CCI&F office by authorized dealer/Registration Unit of Bangladesh Bank.
Quintuplicate Copy is kept as office copy by authorized dealer/Registration Unit.
The Letter of Credit Authorization Form (LCAF) contains the following details-
(1) Name and address of the importer.
(2) IRC no. and year of renewal.
(3) Amount of L/C applied for (both in figure and in word).
(4) Description of item(s) to be imported.
(5) Import Trade Certificate (ITC) Number / Harmonized System of Code
(HS) Code Number.
THE IMP FORM:
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The IMP Form contains the followings
Name and address of the Authorized Dealer.
Amount of remittance to be permitted (i.e., L/C amount).
LCA Form number, date, value in Tk.
Description of goods, quantity.
Invoice value in foreign currency (i.e., L/C amount)
Country of origin.
Port of shipment.
Name of steamer/airline (i.e., by road/by ship/by air etc.)
Port of importation.
Indent or’s name and address.
Indent or’s registration number with CCI&E and Bangladesh Bank.
Full name and address of the applicant.
Registration number of the applicant with CCI&E
Type of LCF i.e. Commercial or Industrial.
SCRUTINIZATION OF L/C APPLICATION:
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On receipt of L/C application, the branch officials scrutinize the same very carefully giving
emphasis to the following points-
a. L/C application is stamped (as per Govt. Stamp Rule) as it is a guarantee of
payment.
b. All information mentioned in different columns has been furnished;
c. The items to be imported are eligible according to import entitlement;
d. If L/C is opened against indent, Bangladesh Bank’s permission, valid
registration, authority to issue indent by indent or are to be checked;
e. The terms and conditions stipulated in the L/C application are consistent with
the Bangladesh Bank Foreign Exchange Guidelines, Import Trade Regulations,
UCPDC etc;
f. The amount and description of merchandise are relevant to LCAF and
performers invoice/ indent / purchase order;
g. Survey Report or Certificate in case of old machinery;
h. Carrying vessel is not of Israel or Serbia, Montenegro, Iraq, Israel &
Afghanistan;
i. Certificate declaring that the item is in operation not more than 5 years in case
of car.
ACCOUNTING TREATMENT IN CASE OF L/C OPENING
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After sanctioning the L/C proposal by the branch incumbent / competent authority, the
respective officer will pass the following vouchers-
Party A/C ------------------------------------------- Dr.
Margin on L/C -------------------------------------- Cr.
Commission on L/C -------------------------------- Cr.
VAT (15% of commission) on L/C -------------- Cr.
FCC (Foreign Correspondent Charge) A/C --------Cr.
Telex/Postage Charges A/C ------------------------- Cr.
A liability voucher is also passed. Such as-
Customers Liability against L/C ----------- Dr.
Bankers Liability against L/C ------------- Cr.
After that, L/C number and the above entries are given in the L/C Register. Then the
transmission of L/C is done through Airmail / Courier Services / SWIFT / Telex to the
Advising Bank. Tested telex is required where SWIFT is not available. It the amount of L/C
exceeds US$5,000; the branch takes the credit report of the beneficiary to ensure the
worthiness of the supplying goods. Reimbursement authority is sent to the Reimbursing Bank.
AMENDMENT OF L/C:
Parties involved in a L/C, particularly the seller and the buyer cannot always satisfy the terms
and conditions in full as expected due to some obvious and genuine reasons. In such a
situation, the credit should be amended. MTBL Bashundhara City Branch transmits the
amendment by tested telex, airmail or courier service to the advising bank. In case of
revocable credit, it can be amended or cancelled by the issuing bank at any moment and
without prior notice to the beneficiary. But in case of irrevocable letter of credit, it can never
be amended nor cancelled without the agreement of the issuing bank, the confirming bank (if
any) and the beneficiary. If the L/C is amended, amendment charge and telex charge, as per
HO circular, are debited from the party’s A/C accordingly. No revocable L/C is opened now a
day.
ADDING CONFIRMATION:
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Sometimes beneficiary or supplier of the goods insists the importer for adding confirmation to
L/Cs or to issue L/Cs with add confirmation. In that case, at the request of the importer, the
Issuing Bank requests the Advising Bank or any third bank to add their confirmation to the
L/C. Normally, add confirmation charge is borne by the beneficiary and the confirmation
charge differs from bank to bank.
On the other hand, the seller being satisfied with the terms and the conditions of the credit
proceeds to dispatch the required goods to the buyer and after that, has to present the
documents evidencing dispatching of goods to the Negotiating Bank on or before the
stipulated expiry date of the credit. After receiving all the documents, the Negotiating Bank
then checks the documents against the credit. If the documents are found in order, the bank
will pay, accept or negotiate the documents and will dispatch to this Branch. The branch
checks the documents. The usual documents are
Invoice
Bill of Lading
Certificate of Origin
Packing List
Shipping Advice
Non-negotiable Copy of Bill of Lading
Bill of exchange.
Pre-shipment Inspection Report.
Shipment Certificate.
Respective officials check whether these documents have any discrepancy or not. Here,
“Discrepancy” means the dissimilarity of any of the documents with the terms and conditions
of L/C. In case of discrepant documents, the branch advices the discrepancy / discrepancies to
the negotiating bank within seven (07) working days after receiving the documents.
Some the usual discrepancies are –
L/C expired
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Late shipment
Amount drawn in excess of the letter of credit.
Bill of Exchange not properly drawn.
Description of goods differs.
Interest clause is missing in bill of exchange, where stipulated.
Bill of Exchange is not drawn/signed by the beneficiary of the credit.
Bill of Lading or Airway Bill stale or Bill of Lading is issued under a charter party.
Insurance cover not as per terms of L/C and insurance does not cover the entire voyage
and insurance policy is not properly stamped.
LODEGMENT & RETIREMENT OF SHIPPING DOCUMENTS:
On scrutiny, if it is found that the document drawn in conformity with the terms of the credit,
i.e., the documents are in order, this Branch lodges the documents in PAD (Payment Against
Documents) and the following accounting treatments are given-
PAD A/C ------------------------------------------------- Dr.
MBL General A/c (at HO prescribed rate) -------------- Cr.
Exchange A/C ------------------------------------ Cr.
The reversal entries are as follow –
Banker’s Liability --------------------------------- Dr.
Customer’s Liability ------------------------------ Cr.
(When lodgment is passed)
After passing the lodgment vouchers, the shipping documents are then stamped with PAD
Number and entered in the PAD Register. Intimation is given to the customer calling on the
bank’s counter requesting retirement of the shipping documents. The retirement vouchers are
as follows
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L/C Margin A/C ------------------------------------------------ Dr.
Party’s A/C ----------------------------------------------------- Dr.
PAD A/C -------------------------------------------------------- Cr.
Interest / Commission A/C ----------------------------------- Cr.
P & T Charges A/C -------------------------------------------- Cr.
After passing the retirement vouchers, endorsement is made on the back of the Bill of
Exchange as “Received Payment” and the Bill of Lading is endorsed to the effect “Please
deliver to the order of M/S -----”, under two authorized signatures of the bank’s officers (P.A.
Holder). Then the documents are delivered to the importer.
EXPORT SECTION & EXPORT FINANCING:
In the Export Section, two (02) types of L/Cs are handled in this branch-
1) Back-to-Back L/C; and
2) Export L/C
Export financing can be done in two ways. These are:
1) Pre-shipment Financing;
2) Post-shipment Financing.
Pre-shipment financing can be done by opening of back-to-back L/C and Packing Cash Credit
(PCC). In case of pre-shipment financing, about 90% is financed by the bank. Of that portion,
about 75% is for back-to-back L/C and 10% is for packing cash credit. Financing in Back to
Back L/C changes according to the products i.e. Normal fabric, Flannel fabric, Woven fabric
etc. Example of post-shipment financing by bank is Foreign Documentary Bills for Purchase
(FDBP).
BACK TO BACK L/C:
In case of a “Back-to-Back” letter of credit, a new L/C (an import L/C) is opened on the basis
of an original L/C (an export L/C). Under the “Back-to-Back” concept, the seller as the
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beneficiary it as a ‘security’ to the Advising Bank. The beneficiary of the back-to-back L/C
may be located inside or outside the original beneficiary’s country. In case of a back-to-back
L/C, no cash security (no margin) is taken by the bank; bank liens the first L/C (the master
L/C). In case of a back-to-back L/C, the drawn bill is usage/time bill.
Papers/documents required for opening of back-to-back L/C are as follows
o Master L/C
o Valid Import Registration Certificate (IRC) and Export Registration
Certificate (ERC)
o L/C Application and LCAF duly filled in and signed
o Performa Invoice or Indent
o Insurance Cover Note with money receipt
o IMP Form duly signed
o In addition to the above documents, the following papers/documents are
also required to export oriented garment industries while requesting for
opening of back-to-back letter of credit -
o Textile Permission
o Valid Bonded Warehouse License
o Quota Allocation Letter issued by the Export Promotion Bureau (EPB) in
favor of the applicant for quota items.
o A permission from Bangladesh Garments Manufacturer’s & Exporter’s
Association (BGMEM).
In case the factory premises is a rented one, Letter of Disclaimer duly executed by the owners
of the house / premises to be submitted. A checklist to open back-to-back L/C is as follows-
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Applicant is registered with CCI&E and has bonded warehouse license.
The master L/C has adequate validity period and has no defective clause
L/C value shall not exceed the admissible percentage of net FOB value of relative
Master L/C
Usage Period will be up to 180 days.
Flow Chart for back-to-back L/C
PAYMENT FOR BACK TO BACK L/C:
In case of back-to-back L/C for 30,60,90,120 & 180 days of maturity period, deferred
payment is made. Payment is given after realizing export proceeds from the L/C Issuing Bank.
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Check the credit limit
Prepare offering sheet if regular credit line is not available
Mark lien on the Master L/C
Issue the L/C
For Garments Sector, the duration can be maximum 180 days. For importing machinery items
or capital goods for 360 days Back to Back L/C can be opened.
REPORTING TO BANGLADESH BANK:
At the end of every month, the reporting to Bangladesh Bank regarding the following
information is mandatory –
Filling of E-2/P-2 Schedule of S-1 category that covers the entire month’s amount of
import, category of goods, currency, country etc.
Filling of E-3/P-3 Schedule of for all charges, commission with T/M Form.
Disposal of IMP Form the includes: (a) original IMP is forwarded to Bangladesh Bank
with invoice and indent, (b) duplicate IMP is kept with the branch along with the Bill
of Entry/Certified Invoice, (c) triplicate IMP is kept with the branch for office record,
(d) quadruplicate is kept for submission to Bangladesh Bank in case of imports where
documents are retired.
EXPORT L/C:
The other type of L/C facility offered by this Branch is Export L/C. Bangladesh exports a
large quantity of goods and services to other countries. Readymade garments (both knitted
and woven), jute, jute-made products, frozen shrimps, tea are the main goods that Bangladeshi
exporters export to foreign countries. Garments Sector is the largest sector that exports the
lion share of the country’s export. Bangladesh exports most of its readymade garments
products of USA and European Community (EC) countries. Bangladesh exports about 40% of
its readymade garments products to USA. Most of the exporters who export through this
Branch are readymade garment exporters.
FORMALITIES FOR EXPORT L/C
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The export trade of the country is regulated by the Imports & Exports (Control) Act, 1950.
There are a number of formalities that an exporter has to fulfill before and after shipment of
goods. These formalities or procedures are enumerated as follows –
o Export Registration Certificate (ERC) : The exports from Bangladesh are subject to
export trade control exercised by the Ministry of Commerce through Chief Controller of
Imports & Exports (CCI&E). No exporter is allowed to export any commodity permissible
for export from Bangladesh unless he is registered with CCI&E and holds valid ERC. The
ERC is required to be renewed every year. The ERC number is to be incorporated on EXP
Forms and others documents connected with exports.
o The EXP Form : After having the registration, the exporter applies to this Branch with the
Trade License, ERC and the Certificate from the concerned Government Organization to
get the EXP Form. If the branch is satisfied, an EXP Form is issued to the exporter.
AXP Form usually contains the following particulars –
1) Name and address of the Authorized Dealer
2) Particulars of the commodity to be exported with code
3) Country of destination.
4) Port of destination.
5) Quantity
6) L/C value in foreign currency
7) Terms of sale
8) Name and address of Importer / Consignee.
9) Bill of Lading / Railway Receipt / Airway Bill / Truck Receipt / Post
Parcel Receipt no. and date
10) Port of Shipment / Post Office of Dispatch.
11) Land Custom Post.
12) Shipment Date.
13) Name of the Exporter with address.
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14) CCI&E’s registration number and date.
15) Sector (public or private) under which the exporter fails.
Securing the Order : Upon registration, the exporter may proceed to secure the
export order. This can be done by contracting the buyers directly through correspondence.
Signing of the Contract : While making a contract, the following points are to be
mentioned: (a) description of the goods, (b) quantity of the commodity, (e) price of the
commodity, (d) shipment, (e) insurance and marks, (f) inspection, and (g) arbitration.
Procuring the Materials : After making the deal and on having the L/C opened in
this favor, the next step for the exporter is set about the task of procuring or manufacturing the
contracted merchandise.
Registration of Sale : This is needed when the proposed items to be exported are raw
jute and jute-made goods.
Shipment of Goods : The following documents are normally involved at the stage of
shipment: (a) EXP From, (b) photocopy of registration certificate, (c) photocopy of contract,
(d) photocopy of the L/C, (e) customs copy of ERF Form for shipment of jute-made goods
and EPC Form for raw jute, (f) freight certificate from the bank in case of payment of the
freight if the port of lading is involved, (g) railway receipt, berg receipt or truck receipt, (h)
shipping instructions, and (i) insurance policy.
The following points should be looked for –
The terms of the L/C are in conformity with those of the contract.
The L/C is an irrevocable one, preferably confirmed by the Advising Bank.
The L/C allows sufficient time for shipment and a reasonable time for registration.
If the exporter wants the L/C to be transferable, advisable, he should ensure those
stipulations are specially mentioned in the L/C.
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At last, the exporter submits all these documents along with a Letter of Indemnity to
this branch for negotiation. An officer scrutinizes all the documents. If the documents are
clean one, the branch purchases the documents on the basis of banker-customer relationship.
This is known as “Foreign Documentary Bills for Purchase”.
PROCEDURE FOR FDBP:
After purchasing the documents the following entries are made –
FDBP A/C ------------------------------------------------- Dr.
Liabilities A/C ------------------------------------------------- Cr.
Charges A/C --------------------------------------------------- Cr.
Exporter’s A/C ------------------------------------------------ Cr.
(Before realization of proceeds)
MTBL General A/C (ID, Head Office) ----------------------- Dr.
FDBP A/C ----------------------------------------------------- Cr.
Charges A/C -------------------------------------------------- Cr.
Exporter’s A/C ----------------------------------------------- Cr.
(Adjustment after realization of proceeds)
The FDBP Register is maintained for recording all the particulars. The contents of a FDBP
Register are as follows-
Date
Ref. No.
Name of the Party (Drawer)
Drawer
Name of Collecting Bank
Conversion Rate
Bill Amount
Amount in Currency
EXP Form. No.
Export L/C No.
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FOREIGN DOCUMENTARY BILLS FOR COLLECTION:
MTBL Bashundhara City Branch forwards the documents for collection due to the following
reasons –
a) If the documents have discrepancies
b) If the exporter is a new client
c) If the banker is in doubt
Foreign Documentary Bills for Collection signify that the export will receive payment only
when the Issuing Bank gives payment. The exporter submits duplicate EXP Form and
Commercial Invoice. Subsequently, the value of the bill is calculated and the following
accounting entries are given:
Head Office (HO) A/C --------------------------------- Dr. @ T.T. Clean
Party’s A/C --------------------------------------------- Cr. @ O.D. Sight
Govt. Tax A/C ------------------------------------------ Cr. @ 10% Invoice Value
Postage A/C --------------------------------------------- Cr.
Income A/C (Profit on Exchange) -------------------- Cr.
An FDBC Register is maintained where first entry is given when the documents are forwarded
to the Issuing Bank for collection and the second one is done after realization of the proceeds.
SETTLEMENT OF LOCAL BILL:
The settlement of local bills is done in the following ways –
The customer submits the L/C to the branch along with the documents to negotiate.
The branch officials scrutinize the documents to ensure the conformity with the terms
and conditions.
The documents are then forwarded to the L/C Opening Bank.
The L/C Issuing Bank gives the acceptance and forwards an acceptance letter.
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Payment is given to the customer on either by collection basis or by purchasing the
document.
The following accounting treatments are made for the purchasing of local bill –
Local Bill Purchase ---------------------------------------------------- Dr.
Party’s A/C -------------------------------------------------------------- Cr.
Commission ------------------------------------------------------------- Cr.
Interest A/C ------------------------------------------------------------- Cr.
A local bill purchase register is maintained to record the acceptance of the Issuing Bank. Until
the acceptance is obtained, the record is dept in a Collection Register.
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MODES OF PAYMENT FOR EXPORT BILLS UNDER L/C:
The most common methods of payment under a L/C are as follows-
At Sight Payment : In At Sight Payment, the bank pays the stipulated sum immediately
against the exporter’s presentation of the documents.
Deferred Payment : In deferred payment, the bank agrees to pay on a specified future
date or event, after presentation of the export documents. No bill of Exchange is involved. In
this branch, the payment is given to the party at the rate of 30,60,90,180,360 days rate as the
case may be. But the Head Office is paid under T.T. Clean Rate. The difference between the
two rates is the exchange margin for the branch.
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At Sight PaymentCredit
Deferred PaymentCredit
Negotiation Payment Credit
Acceptance Payment Credit
Payment methods under L/C
Negotiation Credit: In Negotiation Credit, the export has to present a bill of exchange
payable to him in addition to other documents that the bank negotiates.
Acceptance Credit: In Acceptance Credit, the exporter presents a bill of exchange
payable to him and drawn at the agreed tenor (that is, on a specified future date or event) on
the bank that is to accept it. The bank signs its acceptance on the bill and returns it to the
exporter. The exporter can then represent it for payment on maturity. Alternatively he can
discount it in order to obtain immediate payment.
TEST KEY ARRANGEMENT:
Test Key Arrangement is a secret code maintained by the banks for the authentication for their
telex messages. It is a systematic procedure by which a test number is given and the person to
whom this number is given can easily authenticate the same test number by maintaining that
same procedure. MTBL Bashundhara City Branch has test key arrangements with so many
banks for the authentication of L/C messages and for the transfer of funds.
FOREIGN REMITTANCE:
“Foreign remittance” means purchase and sale of freely convertible foreign currencies as
admissible “Foreign Exchange Regulations Act-1947” and “Guidelines For Foreign Exchange
Transaction-VOL. 1 & 2” of the country. Purchase of foreign currencies constitutes inward
foreign remittance and sale of foreign currencies constitutes outward foreign remittance.
So we see that there are two types of Foreign Remittance:
Foreign Outward Remittance.
Foreign Inward Remittance.
Mode of Outwards Remittance:
Foreign Telegraphic Transfer (FTT).
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Foreign Mail Transfer (FMT).
Foreign Demand Drafts (FDD).
Travelers Cheque (TC).
Foreign Currency Notes.
Mode of Inward Remittance
Telegraphic Transfer (TT).
Mail Transfer (MT).
Mail Transfer (MT).
Foreign Demand Drafts (FDD).
Payment Order (PO).
Travelers Cheque (TC).
Foreign Currency Notes.
Telegraphic Transfer (TT)
Telegraphic Transfer refers to the payment instruction by tested telex/cable or authenticated
fax by bank in abroad on an inland bank (local/foreign bank). Normally foreign banks, with
which corresponding banking relationship / drawing prevails, send T.T.
Payment Procedure of TT (in ward)
To verify the test number.
To inform the beneficiary for submission of form “C”.
To confirm form Issuing Bank / Reimbursing Bank.
To convert of Foreign Currency into Bangladesh Tk. with TT (CLEAN).
To make entry in TT’s Drafts, MT’s received register.
Following vouchers are passed:
For crediting a SB/CD A/C:
Dr. –MBL General A/C H.O., ID @ OD Transfer rate.
Cr.-Party A/C
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(TT. Handling charge).
Procedure for TT (out ward)
Local banks can draw TT to those banks with whom they have accounting relationship and the
message should contain test number and brief description of the beneficiary. The following
vouchers are passed at the time of issuing a TT from local bank’s branch:
Dr.: Party A/C
Cr.: MTBL Gen A/C @ TT/OD selling
Cr. : Income A/C Telex (Tk. 700/-)
Cr. : Income A/C others (Tk. 200/-)
On the same day a tested TT message will be sent to the branch’s
corresponding/reimbursement bank with an advice to remit the TT amount to the beneficiary’s
account in abroad by debiting our NOSTRO A/C.
FOREIGN DEMAND DRAFT (FDD)
The foreign bank/exchange company on local bank usually issues Foreign Demand Draft. It is
an order to pay a certain sum to a certain person or as his instruction, issued by the bank on its
overseas branch or on its correspondent bank. The demand draft is handed over to the
purchaser who sends it to the beneficiary. The beneficiary obtains payment on presentation to
the bank on which the draft is drawn.
Encashment of FDD may take place in two ways-
Purchase,
Sending for collection.
Purchase
The following criteria must be fulfilled-
Firstly, the party applies for a Foreign Bill Purchase (FBP) to limit the facility, which
is approved by the Head Office authority for a certain period.
The local banks will entertain valued clients with this facility.
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The party will give an undertaking regarding adjustment of FBP liabilities which is
offered to him in case of non-realization of proceeds (FDD).
It is necessary that all relevant charge documents (D.P. Note, Personal Guarantee etc.)
be collected from the party.
The following vouchers are passed after it is posted in the FBP register;
Dr. - FBP (at the spot buying rate)
Cr. – Income A/C Commission others (Tk. 50/-)
Cr. – Income A/C Postage (k. 50/-)
The FDD is sent to the American Express Bank, Standard Chartered Bank, Dhaka for
collection. It is drawn on a foreign bank in abroad otherwise it is sent to the respective bank
on which the FDD is drawn. After giving endorsement on the backside of the FDD.
After realizing proceed, the following vouchers are passed-
Dr. - MTBL Bank G/A Head Office
Cr. – FBP (liability adjusted)
Cr. – Income A/C (Exchange Gain)
Sending for collection
It is posted in the Foreign Documentary Bills for Collection. The following functional
activities are undertaken for a FDBC-
It is posted in the FDBC register. FDBC No. Is assigned to the FDD.
After receiving credit advice the following vouchers are passed.
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Dr. – MTBL Bank, General A/C, HO, ID (at spot buying TT clean rate)
Cr. – Party A/C.
Cr. – Income A/C postage (Tk. 50/-)
Cr. – Income A/C Commission (Tk. 50/- as handling charge)
Procedure for FDD (our ward)
Any AD branch can issue FDD on the bank with whom they have an accounting
relationship.ssss
The branch passed the following vouchers when we issue FDD
Dr : Party A/C or cash
Cr : MTBL Gen. A/C HO @ TT/OD selling)
Cr : Income A/C Commission (Tk. 300/-)
Then the party has to fill up the T/M form giving full details required including the
information-purpose of FDD, beneficiary’s name and address etc.
The branch allots a FDD issuing number for the same entry into the FDD register. After that
the FDD is protect graphed and signed by the authorized officers.
At last the branch hands over the FDD block to the party taking his signature in the FDD
register.
ENDORSEMENTS OF US$ IN PASSPORT:
MTBL endorses US Dollars (USD), Great Britain Pound (GBP) in passports. To endorse US
Dollar, the client has to apply in the prescribed form (TM Form). The following entries are
given in this regard, -
Cash or Customer’ A/C Dr.
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Foreign Currency on Hand Cr.
(Dollar Special)
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Section: C
CREDIT MANAGEMENT OF
MUTUAL TRUST BANK
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Products under Credit Department:
A. Auto Loan:
To own a car is everyone’s dream as well as a part of today’s living, which enhances
standard and quality of life. Auto Loan scheme has been designed to help materialize
your long cherished dream of a car of your own. Purchase of new/ reconditioned cars
is allowed under this scheme.
Loan amount: 70% of car value but maximum of Tk. 20 lac
IR: 13.00%
Purpose: Purchase of new or reconditioned car
Loan Repayment Period: 60 Months
Eligibility to get the loan:
Salaried person
Business
Govt. employees
Self-employed person
Professionals
Age limit 30-55 years
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B. Home loan Scheme:
Home Loan Scheme has been introduced to facilitate people to fulfill their dream of a
home of their own. It has been designed o help people to get home loans on easy terms
and without any hassle.
Loan amount: Maximum Tk. 50 lac.
IR: 12.50-13.00%
Additional Facility: 6-12 months grace period
Purpose: Purchase of flat or house, or building new house
Security: Documents of House
Eligibility to get the loan:
Salaried executives
Professionals
Businessmen and govt. officials.
Loan Repayment Period: The loan is to be repaid by monthly equal installments
including interest within the period ranging from 5 years to 15 years depending on the
size of loan.
C. Small Business Loan Scheme:
With the objective of extending financial support to small businessmen, this loan
scheme has been introduced. It has been designed to get business loans on easy terms
and without any hassle. Only the genuine businessmen having entrepreneurship quality
and honesty, to run and expand their business smoothly.
Key Feathers:
Maximum loan under the scheme will be up to Tk. 50 lac.
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No collateral security is required up to Tk. 5 lac. Collateral security is required
for loan above 5 lac.
Tenor: within 60 months
Grace period: 1 month
IR:13.0
D. Home Repair/Renovation Loan Scheme:
Home Repair/ Renovation Loan Scheme has been designed with a view to help the owners
of house/ building/ flat to mitigate their financial need for repair/ renovation of their
house/ building/ flat. Only the genuine residential house owners will be eligible to avail
the loan facilities to repair or renovate their own house/ building/ flats according to their
needs.
Key Feathers:
Maximum loan under the scheme will be up to Tk. 5.00 lac
The loan is to be repaid by monthly equal instalments including interest within
maximum 60 months.
Age of the loan applicant should be within 30- 50 years
3 months grace period facility
IR is 12.50- 13.00%
E. Credit Card:
MTB offers two types of credit card including:
International Card
Local Car.
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1. International Credit Card:
Useable in Any Currency at Home and Abroad.
Best for upper class income group.
Easy to use & Carry.
Secured & Convenient.
Handy & Prestigious.
50% Cash Advance facility.
Easy repayment options.
Up to 45 Days Interest free period
2. Local Credit Card:
a. Local Gold Credit Card
Buy now pay later.
Best for upper class income group.
Easy to use & Carry.
Secured & Convenient.
Handy & Prestigious.
50% Cash Advance facility.
Useable at all ATMs bearing Visa Logo.
5000 outlets for shopping in Bangladesh.
Easy repayment options.
Up to 45 Days Interest free period.
b. Local classic credit Card:
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Buy now pay later.
Best for middle class income group personnel.
Easy to use & Carry.
Secured & Convenient.
Handy & Prestigious.
50% Cash Advance facility.
Useable at all ATMs bearing Visa Logo.
5000 outlets for shopping in Bangladesh.
Easy repayment options.
Up to 45 Days Interest free period.
F. MTB Interest Rates on Lending
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Categories Rates
1 Agriculture 13.00%2 Term loan to large & medium scale industries 13.00%
3
Working Capital: a. For large & medium scale industries
b. For others 13.00%
13.00%
13.00%
4 Export Finance (PC, ECC)
7.00%
(Fixed)
5. Commercial Lending including import finance 13.00%
6.
Housing Loan: (1) Commercial
(2) Residential
a)General
b) Wage Earners
13.00%
13.00%
12.50%
7. Term Loan to small & Cottage Industries 13.00%
8. Consumer Credit 16.00%
9. Lease Finance 13.00%
10. Loan to Non-Banking Financial Institutions 13.00%
11. Loan/SOD against FDR of the Bank2% above FDR
Rate12 SOD against FDR of other Banks 13.00%13 Auto Loan 14.50%14 Small Business Loan 13.00%15 Others 13.00%
Risk management & lending Strategy for Credit Department of MTB
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Credit Risk
redit RiskDefault Risk
Concentration RiskIntrinsic Risk
Portfolio Risk
Risks Associated with Credit
A. CREDIT RISK
It is borrowing customers’ failure to make some or all of their promised interest and principle
payments, these default loans and securities result in losses that can eventually erode the
bank’s capital.
B. RISKS ASSOCIATED WITH Credit
For lending, basically banks have to tackle almost nine categories of risk factors, those are:
credit, interest rate, liquidity, foreign exchange, transaction, price, compliance, counter party
and reputation risk. Therefore, a credit/relationship manager must understand all the risks
embedded in the loan portfolio and their potential impact on the institution. However, this
report only focuses on the credit risk, which is the most vital and crucial risk between all the
risks associated with lending.
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Credit risk basically has two main wings: Default Risk and Portfolio Risk. Default risk is the
risk that the borrower is unable or unwilling to fulfill the terms promised under the loan
contract, whereas portfolio risk includes all the deficiencies in the policies and actions taken
by the bank when pursuing lending process. Portfolio risk also comprises with two more
forms of risks: intrinsic risk and concentration risk.
Intrinsic risks emerge from the inception of each portfolio and risk diversification can truncate
or limit the probabilities of the bad outcomes in the portfolio. On the other hand,
Concentration Risk or Systematic Risk by its nature, very difficult to mitigate as this form of
risk inherit beyond the banks control. The table below shows some sources of intrinsic and
concentration risk.
Intrinsic Risks Concentration RisksDeficiencies in Loan policies and procedures State of economy
Absence of prudential credit conc. Limits
Volatility in
Equity marketsInadequately defined lending limits Commodity markets
Deficiency in appraisal FX marketsExcessive dependence on collateral Interest rates
Inadequate risk pricing Trade restrictionsAbsence of post sanction surveillance Economic sanctions
Government Policies
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C. IMPORTANCE OF CREDIT RISK MANAGEMENT
Since lending or offering credit is a bank’s core business transaction, credit risk carries the
potential of wiping out enough of a bank’s capital fund or even force a bank to become
bankrupt. This horizon draw significant concentration on credit risk management throughout
the world, in fact this is very true for country like us, where credit market is not yet structured,
rules and regulation are not practiced properly or corruption plays a crucial role in credit
administration. So managing this kind of risk has always been one of the predominant
challenges in running a bank. An effective credit risk management system can ensure:
Efficient Use of Economic and Regulatory Capital
Sound Credit Approval and Limit Monitoring.
Business Opportunity Analysis.
Prudence Reserve Management.
Portfolio Management.
Earnings Potentiality.
Confidence in the market place.
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D. MTBL’s Defenses Against Credit Risk
To overcome these risks MTB takes several steps including:
The first line of defense is the use of credit scoring or credit analysis to avoid
extending credit to parties that cause excessive credit risk.
Effective loan structuring such as setting tenor in favor to bank or may be making
repayment schedule complying with borrowers future cash flow etc help banks
mitigate risks.
Credit risks can be hedged with credit derivatives.
Ensuring sufficient economic Capital against outstanding credit exposures.
Portfolio Diversification: The spreading out of a bank’s credit accounts among a wide
verity of customers including large and small accounts and different industries in order
to reduce the bank’s overall risk exposure.
E. CREDIT RISK MONITORING & CONTROL
Credit monitoring works as the preventive function for bad loans. Credit risk monitoring
refers to continual monitoring of individual credits inclusive of Off-Balance sheet exposures
to obligors as well as overall credit portfolio of the bank. Banks need to articulate a system
that enables them to monitor quality of the credit portfolio on day-to-day basis and take
remedial measures as and when any deterioration occurs. Such a system would enable a bank
to ascertain:
Whether loans are being serviced as per facility terms and conditions.
The overall risk profile is within limits established by management.
Analyze borrower’s financial position compare to previous year’s position.
Frequent visit to borrower’s project to know the real situation.
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The periodic valuation of collaterals and loan covenants to verify whether it cover the
outstanding loan amount as well as identify any covenant breaches.
Whether there are any previous due for any principle or interest payment and also the
reasons behind such cases.
Whether timely corrective action are taken to address findings of any internal, external
or regulator inspection/audit.
The periodic review of individual relationship along with credit portfolio.
F. MEASURING A BORROWERS CREDIT WORTHINESS
To provide loan to the customers MTB considers 5 Cs of Credit including:
Character: The character of the borrower indicates two things: the ability to pay versus the willingness to pay. The ability to pay refers to the borrower’s financial credibility to pay. A good character is one that has the ability to pay and a willingness to pay. The lender should check on the borrower’s character.
Capacity: Capacity refers to the sources of repayment, i.e. the cash flow. The borrower must be able to meet all his financial obligations on the due dates.
Capital: Capital represents the degree of commitment and the ability to sustain this commitment during bad times.
Conditions: Condition refers to the macroeconomic environment. For example, if the loan is needed for setting up a retail business in a particular area, then the lender must make a study of the economic conditions (the degree of propensity to spend by residents in that locality).
Collateral: Collateral is the lender’s second line of defense. If the payback is derived from cash flows, then the collateral will not be liquidated for repayment.
It is widely practiced that different weightings or emphasis are allocated to these factors. Generally, the percentages are:
Character 30 percent Capacity 30 percent Capital 20 percent Conditions 10 percent Collateral 10 percent
G.FOUR STAGES OF A LOAN-LIFE CYCLE
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The Life Cycle comprises four stages. They are:
Stage 1 Business DevelopmentStage 2 Credit EvaluationStage 3 Loan AdministrationStage 4 Loan Recovery
There are four main stages in a lending process. The credit officer will first market for potential business opportunities (Stage 1 – Marketing). Having identified the potential borrowers, he will then do a credit analysis. To be effective, he must know what the sound lending principles are (Stage 2 – Credit Analysis). Once the loan has been approved, monitoring is necessary (Stage 3 – Loan Administration). If the borrower fails to fulfill his obligations, the credit officer will have to study the possible remedial action needed to be adopted, i.e. the remedial management (STAGE 4–LOAN RECOVERY).
Stage 1: Business Development and Marketing
Through the selling cycle, lenders initiate the lending process.
Stage 2: Sound Lending Principles/Credit Analysis
(a) Quantitative: Be able to read and analysis the financial statement (e.g. cash flows and ratios of a company).
(b) Qualitative: Be able to understand the environment and trend of business.
(c) Documentation Process: Be able to execute proper documentation on the collateral held.(d) Legal aspect of security: Be able to understand the procedures involved in taking debentures or a lien on fixed deposits and how to perfect a legal charge.
(e) Relationship Income: Be able to analysis the profitability of the business.
(f) Capital Adequacy: Be able to maintain a minimum of 8 percent ratio of equity capital to total risk-weighted loan assets.
Stage 3: Monitoring: A review is to be carried out on a yearly basis. Upon re-approval, should there be changes to certain terms and conditions, an Offer Letter will be sent to the borrower for his acceptance of the renewed facility.
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Stage 4: Remedial Management
(a) Winding up – winding-up action taken on the company.(b) Enforcement of guarantees – to take legal action against the guarantors.(c) Receivership – to appoint receivers and managers.(d) Foreclosure – eventual recovery by auctioning a landed property.(e) Turnaround service – to generate cash flows by salvaging the company.
H. Credit Administration
Ongoing administration of the credit portfolio is an essential part of the credit process. Credit administration function is basically a back office activity that support and control extension and maintenance of credit. A typical credit administration unit performs following functions:
1. Documentation. It is the responsibility of credit administration to ensure completeness of documentation (loan agreements, guarantees, transfer of title of collaterals etc) in accordance with approved terms and conditions. Outstanding documents should be tracked and followed up to ensure execution and receipt.
2. Credit Disbursement. The credit administration function should ensure that the loan application has proper approval before entering facility limits into computer systems. Disbursement should be effected only after completion of covenants, and receipt of collateral holdings. In case of exceptions necessary approval should be obtained from competent authorities.
3. Credit monitoring. After the loan is approved and draw down allowed, the loan should be continuously watched over. These include keeping track of borrowers’ compliance with credit terms, identifying early signs of irregularity, conducting periodic valuation of collateral and monitoring timely repayments.
4. Loan Repayment. The obligors should be communicated ahead of time as and when the principal/markup installment becomes due. Any exceptions such as non-payment or late payment should be tagged and communicated to the management. Proper records and updates should also be made after receipt.
5. Maintenance of Credit Files. Institutions should devise procedural guidelines and standards for maintenance of credit files. The credit files not only include all correspondence with the borrower but should also contain sufficient information necessary to assess financial health of the borrower and its repayment performance. It need not mention that information should be filed in organized way so that external / internal auditors or SBP inspector could review it easily.
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6. Collateral and Security Documents. Institutions should ensure that all security documents are kept in a fireproof safe under dual control. Registers for documents should be maintained to keep track of their movement. Procedures should also be established to track and review relevant insurance coverage for certain facilities/collateral. Physical checks on security documents should be conducted on a regular basis.
I. CREDIT MANAGEMENT PROCESS
Credit management process at MTB includes broadly three activities:
1. Credit Origination: dealing with loan purpose, IR, Tenor, installment amount etc.
2. Credit Approval: credit approval process starts with asking some predefined
documents from clients in order to judge the feasibility of the new relationship.
Required documents include mainly:
Company Profile.
Memorandum of Articles.
Present Liability positions with other financial institutions.
Financial Statements (preferably audited).
Directors Information (Net worth statements).
Land or other documents that client want to give as security etc.
j. CREDIT RECOVERY
Bank usually expects to get its money in timely and normal manner. But often for several
reason this manner may deteriorate and can produce loss to the bank. Like other banks, BBL
has thought about this matter and formulated some steps to recover or make its money inflow
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regular. But recovery of a bad loan is one of the tough jobs in banking. In fact it incurs some
additional costs as well. However recovery process includes,
1. Determine recovery strategy and action plan.
2. Make sure that adequate amount of provision has been kept against risky assets.
3. Notice client about their overdue statement.
4. Remind clients about their outstanding.
5. RM visits the client and pursue for repayment of the due installment.
6. Report to Bangladesh Bank for updating client’s CIB if the overdue installment
continues more than six months and seek advises from them.
7. Give final reminder mentioning legal action to be followed after certain days
8. Try to acquire security and collateral items for collection of loan.
9. Letter to different banks and associations.
10. Send legal notice and take legal actions.
K. CREDIT POLICY OF MTBL
MTBL’s Credit policy contains the views of total macro-economic development of the
country as a whole by way of providing financial support to the Trade, Commerce and
Industry. Throughout its credit operation MTB goes to every possible corners of the society.
They are financing large and medium scale business house and industry. At he same time they
also takes care entrepreneurial development through its operation of Lease finance and some
Micro Credit, SME finance etc. As a part of its Credit policy MTB through its credit operation
maintains commitment for social welfare. The bank is coming up with a scheme where the
under privileged children will be given financial support for education and self-employment.
From operational aspects it is observed that as a matter of policy –
MTB puts emphasis on the customer
It takes care of diversity in Credit Portfolio.
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It takes care in maintaining proper ‘Mix’ of short, medium and long term finance in its
credit portfolio usually they do not go for long term finance for a period not exceeding
5 years.
Charging of interest is flexible depending on insisting of the proposal and the
customer.
L. CREDIT SANCTION AUTHORITY OF MTBL
MTB believes in decentralization of power and authority. Because of the evil duel
subordination may creep in the chain of command if authority is not well defined and properly
implements with a view to ensuring prompt efficient services to its multitude of plans spread
far and wide, the bank envisages delegation of optimum power to its executives and officials
at different levels of operation. In order to implement the system of delegation of power
effectively and to derive the desired benefit for the bank as well as the executive concerned,
bank has developed a system to ensure that delegated authority exercised by the executive can
be evaluated realistically and qualitatively.
The basic guideline they follow to achieve the objective of delegation of authority is –
The Managing Director can exercise all the powers vested in other executives of
the bank.
Other than Managing Director, the executives only to when such power is
delegated exercise the delegation of powers.
The Managing Director may suspend exercise of delegated power of any executive
through specific or general order.
Delegated powers are expected to be exercised by the Authorized Executives judiciously
keeping the bank interest in mind. In exercising the powers so delegated Authorized
Executives shall also have to abide by the credit restrictions, tools and regulations as governed
by banking company Act, Bangladesh bank and other usual credit norms. However, the
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following guidelines are laid down before the executives of MTB for exercising the delegated
power.
The borrower must be a man of integrity, and must enjoy good reputation in the
market.
The borrower must have the capacity and capability for utilizing credit properly and
profitably.
The enterprise of the borrower must be viable and profitable. That is proposal of the
borrower must be evaluated properly and carefully so as to ascertains its profitability.
The enterprise must be able to generate sufficient fund for debt servicing.
A customer to whom credit is to be allowed should be as far as possible within the
command area.
No sanctioning officer can sanction any credit to any of his near relations and to any
firm/company where his relations have financial interest.
There shall be no power to sanction clear advance.
M. Credit Rating Report by Credit Rating Agency of Bangladesh (CRAB)
Long Term:A1
Short Term: ST3
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Date of Rating: 15 May 2010
Validity:1 (One) Year
New Rating is under process
Commercial banks rated in this category are adjudged to be a very good bank, characterized
by a good financials, healthy and sustainable position as well as a first rate operating
environment. This level of rating indicates strong capacity for timely payment of financial
commitments with very low likeliness to be adversely affected by foreseeable events. Bank
rated in this category are characterized with commendable position in terms of liquidity,
internal fund generation and access to alternative sources of fund.
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Section: D
Risk Management
Risk is an integral part of banking business and MTB aims at delivering superior shareholder value by achieving an appropriate trade- off between risk and return. The policies and procedures established for this purpose are continuously reviewed in our quest to benefit from a blend of local and international practices. The management intimates the compliance issues of Bangladesh Bank to the Board. The Board accord approval to the policy guidelines developed in line with instructions and guidelines of Bangladesh Bank. The risk management of the Bank covers all area of risk issues. The major areas are Credit Risk, Foreign Exchange
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Risk, Internal Control and Compliance, Money Laundering Risk, Asset Liability Management Risk and Information Technology Risk and these are handled proficiently by the Bank. The concerned divisions/departments are headed by senior executives with vast knowledge. To this effect, the Bank took the following steps under the guidelines of Bangladesh Bank:
a) Credit Risk Management
Credit risk is the risk that a borrower is unable to meet its financial obligations to the lender. The credit risk is generally made up of transaction risk or default risk and portfolio risk. We have standardized credit approval processes. Credit risk is controlled through segmental exposure limits to various industries and sectors, prudential exposure and substantial exposure ceiling and risk mitigation by obtaining collateral and guarantees.
The Bank has put in place a well- structured Credit Risk Management Policy duly approved by the Board. In addition to Credit Risk Management policy, the Bank has also framed Board approved credit policy and ensures compliance with regulatory requirements, more particularly in respect of Exposures norms, Assets classification guidelines, Capital Adequacy guideline, etc. of Bangladesh Bank/other statutory authorities.
Credit risk is monitored by the Bank account wise and compliance with the risk limits/exposure cap approved by the board is ensured. The quality of internal control system is also monitored and in-house expertise has been built up to tackle all the facets of Credit Risk.
The Bank follows a well defined multi layered discretionary power structure for sanction of loans. Credit Grid has been constituted at the Head office level for considering fresh/enhancements proposals. The Bank assesses various risk factors for new products prior to its introduction.
b) Market Risk Market Risk is the possibility of loss, arising from changes in the value of financial instrument as a result of changes in market variables such as interest rates, exchange rates, equity and commodity price
1.Foreign Exchange Risk Management:
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Foreign Exchange Risk is a measure by the variance of the domestic currency value of an asset, liability or operating income that is attributable to unanticipated change in the exchange rates. Simply put, it is the risk that relates to gains/losses that arises due to fluctuations in the exchange rates.
In view of the significance of the market risk and in order to aggregate all such risks at a single department and to bring expertise in such functions, the concept of treasury has evolved. Today’s financial institutions engage in activities from import, export and remittance to complex derivatives involving basic foreign exchange and money market to complex structured products. All these require high degree of expertise that is difficult to achieve in the transaction originating departments and as such the expertise in housed in a separate department i.e. Treasury.
MTB has already segregated Treasury functions in three separate wings i.e. Front office, Back office and mid office.
In compliance with the requirement of Bangladesh Bank’s Foreign Exchange Risk Management guidelines, Treasury department is performing the foreign exchange dealing in an appropriate manner and managing risk management of the organization’s overall balance sheet as well as the capital of the bank. 2.Interest Rate Risk:
MTB’s focus is mainly on interest rate risks arising from conduct of normal business. Failure to identify the risks associated with business and failure to take timely measures in giving a sense of direction threatens the very existence of the institutions. It is therefore, imperative for the banks to form “Asset Liability Management Committee (ALCO)” with the senior management as its members to control and better manage its Balance Sheet Risk.
In compliance with the requirement of Bangladesh Bank’s “Asset Liability Management Committee” (ALCO) with the senior executives of the committee calls for a meeting once every month to set and review strategies on ALM.
MTB ALM desk performs Money Market activities, managing liquidity and interest rate risk of the Bank, understanding of the market etc, update the balance sheet movement and also comply the statutory obligations as well as the risk elements involved with the business.
3.Equity Risk
Equity risk arises from movement in market value of securities held. The investment committee monitored the risk under a well-designed policy framework.
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C) Operational Risk
Operational risk is the risk of loss resulting from inadequate or failed internal process, people and systems or from external events. Operational risks in the bank are managed through a comprehensive and well-articulated internal control framework. Material losses regularly analyzed by cause and actions taken to improve system and controls to prevent recurrence in the future.
MTB has restructured Internal Control and Compliance Division headed by a senior level executive in light of Core Risk guidelines of Bangladesh Bank. The division is comprised of three departments; Audit and inspection Department, ICC Compliance Unit and ICC Monitoring unit. Bank has developed an internal control and Compliance Policy duly approved by the Board of Directors.
As a tool of Internal Control, the Audit and Inspection teams undertake periodic and special audit and inspection on the branches and departments/divisions of head office in order to sort out the weaknesses and defects in the control process and report to the management for taking corrective measures to protect the interest of the Bank.
The Compliance & Monitoring Units of this division ensure timely and proper compliance of all regulatory instruction and internal policies and procedures in the day-to-day operation of the bank by way of using various control tools. They assess the operation risk and take appropriate measures to mitigate the same for smooth operation of the bank. ICC Division reports serious non-compliance detected by internal and external auditors with up-to-date compliance position thereto, large financial risk exposures, control weaknesses etc. to the Audit Committee of the Board for review and taking appropriate measures.
The ICC division also ensures the clear definition of organizational structure, appropriate assignment, accountability and delegation of authorities to functional management to create control and compliance cultures within organization with the active guidance and supervision of senior management and Board of directors.
Business entitles today exist in a highly competitive world. They are constantly innovating to meet their business objectives providing essential and unique services to their customers. Technology advances have enable them to achieve their varied strategies. And yet, the threats of disaster, on account of business interruption, are not extinct in fact; they have also evolved along with the technology. Keeping that in mind MTB has taken up its Business Continuity Planning (BCP) as the most significant challenge working out a way to prevent, if possible, and manage the consequences of a disaster, limiting it to the extent that a business can afford. Besides BCP the bank is also focusing on combating security threats as well. In keeping with our centralized management model, each branch within the bank has its own ITS systems. Actions taken include the updating of software and analyzing new software, enhancing ITS related controls, training of staff in system knowledge and sharing of best practices between branch users.
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d) Reputation Risk
Money laundering risk of financial institutions lies with the involvement in any single transaction or series of transactions that assists a criminal in keeping, concealing or disposing of proceeds derived from illegal activities. So it is a major threat to banks and non-bank financial institutions. In place of the money Laundering Prevention Act, 2002, the government re-enacted Money Laundering Prevention Ordinance, 2008 (ordinance 12 of 2008) on 13.04.08. The government enacted Anti Terrorism Ordinance, 2008 on 09.06.2008 in order to combat terrorism and financing of terrorism. These two Ordinances entrust some duties and responsibilities with financial institutions. Bangladesh Bank, the regulatory authority, has issued 20 (twenty) circulars so far which include, among others, KYC procedure, STR, CTR, Money Laundering Prevention Ordinance, 2008, Anti Terrorism Ordinance, 2008 and their implementation process.
MTB, in line with the said ordinances, circulars and guidelines of Bangladesh Bank, has developed two separate guidelines on policies and procedures on prevention of Money Laundering and on Combating Financing of Terrorism. As per the provisions of these two ordinances, the employees of the Bank have to carry out some duties and responsibilities under the supervision of Bangladesh Bank. In order to ensure the compliance of all the instructions given on different occasions by Bangladesh Bank, Central Compliance Unit (CCU) has been established and chief Anti-Money Laundering Compliance Officer (CAMLCO) Branch Anti-Money Laundering Compliance Officer (BAMLCO) have been designated.
107
Section: - E
Graphical Presentation
Of
Performance Analysis
Table :-1Total assets
Table showing the Total Assets of Mutual Trust Bank Ltd during 2005 to 2009. In million TK
108
Year Total Assets20052006200720082009
19,30725,98432,18238,96552,775
Explanation:- From the above table it includes that the total asset trend position of Mutual
Trust Bank Ltd is quite satisfactory. There is an increasing trend from 2005 to 2009.In 2005
the total asset was 19,307 which is around two and half times more than 2009. It shows
efficient management and greater solvency of MTBL.
This can be shown graphically in the following diagram:-
Total Assets
Table :-2Total Deposits
Table showing the Total deposits of Mutual Trust Bank Ltd during 2005 to 2009. In Million TK
109
Year Total Deposit20052006200720082009
16,09922,26424,77733,82042,354
From the above table it indicates that the deposit trend position of Mutual Trust Bank Ltd is
quite satisfactory. There is an increasing trend from 2005 to 2009. In 2005 the deposit position
was 16,099 which is around two and half times more than 2009. Expansion of branch
network, competitive interest rate and deposit products contributed to this growth. The
customers of the bank are individuals, corporations, financial institutions, government and
autonomous bodies etc.
This can be shown graphically in the following diagram:-
Total deposit
Table:-3Total Loans and AdvancesTable showing the Total Loans and Advances of Mutual Trust Bank Ltd during 2005 to 2009. In Million TK
Year Total Loans and Advances2005 14,373
110
2006200720082009
18,59222,68328,52933,884
There is an increasing trend in total loans and advances of Mutual Trust Bank Ltd from 2005
to 2009. In 2005 the Total Loans and Advances was 14,373, In 2007 it was 22,683 which was
around two times more than 2005 and in 2009 it increases to 33,884. Because MTBL has
designed appropriate credit risk management criteria and strategies for balanced lending mix
commensurate with sound capacity to finance in the short and the long-term credit.
This can be shown graphically in the following diagram:-
Total Loans and Advances
Table: - 4Earnings per share
Table showing Earning per share of Mutual Trust Bank Ltd during 2005 to 2009.
Amount in TK
111
Year Earning per share20052006200720082009
35.3747.9314.8017.2746.46
From the above table we can see that, the Earning per Share is not satisfactory. Because in
2005 the Earning per Share was 35.37 and it increases to 47.93. But in 2007 it decreases to
14.8 and again in 2008 it increases from 14.8 to 17.27. And finally in 2009 it increases to
46.46 which is quite satisfactory for this Bank.
This can be shown graphically in the following diagram:-
Earning per share
Table:- 5Return on Average Equity
Table showing the Return on Average Equity of Mutual Trust Bank Ltd during 2005 to 2009.
Percentage
112
Year Total Deposit20052006200720082009
24.32%27.71%10.68%13.47%26.61%
From the above table it indicates that the Return on Average Equity position of Mutual Trust
Bank Ltd. There is an increasing trend in 2005 and 2006. But in 2007 it decreases and again it
increases to 26.61 in 2009.
This can be shown graphically in the following diagram:-
Return on Average Equity
Table:-6Return on Average assets
Table showing Return on Average assets of Mutual Trust Bank Ltd during 2005 to 2009. Percentage
Year Return on Average Assets
113
20052006200720082009
1.91%2.10%0.72%0.86%1.79%
This table showing the Return on Average Assets of Mutual Trust Bank Ltd. Here we can see
that in 2005 the Return on Average Assets was 1.91%, in 2006 it was 2.10%, in 2007 it was
0.72%, in 2008 it was 0.86% and in 2009 it was 1.79%.
This can be shown graphically in the following diagram:-
Return on Average assets
Table :-7Total operating Profit
Table showing Total operating Profit of Mutual Trust Bank Ltd during 2005 to 2009.
In million TK
114
Year Total operating profit20052006200720082009
652969764
1,1951,627
From the above table it indicates the total operation Profit of Mutual Trust Bank Ltd . There is
an increasing trend from 2005 to 2009. In 2005 the Total Operating Profit was 652 which was
around three times more in 2009. It shows efficient management of MTBL.
This can be shown graphically in the following diagram:-
Total operating Profit
Table:- 8Net Asset Value Per Share
Table showing Net Asset Value per Share of Mutual Trust Bank Ltd during 2005 to 2009.
Amount in TK.
115
Year Net Asset Value Per Share20052006200720082009
180.66200.42204.86165.88208.60
From the above table it shows the Net Asset Value Per Share of Mutual Trust Bank Ltd. In
2005 Net Asset Value Per Share was 180.66, in 2006 it was 200.42, in 2007 it was 204.86, in
2008 it was 165.88 and in 2009 it was 208.6. i.e. during these years the overall Net Asset
value per share MTB was the upward position.
This can be shown graphically in the following diagram:-
Net Asset Value per Share
Table :-9Total Market Capitalization
Table showing Total Market Capitalization of Mutual Trust Bank Ltd during 2005 to 2009.
In Million TK
116
Year Total Market Capitalization20052006200720082009
3,816.723,252.745,952.594,786.277,272.82
This table shows the Total Market Capitalization of Mutual Trust Bank Ltd. In 2005 the Total
Market Capitalization was 3816.72, in 2006 it was 3252.74, in 2007 it was 5952.59, in 2008 it
was 4786.27, and in 2009 it was 7272.82. The total market capitalization was fluctuating
during these years.
This can be shown graphically in the following diagram:-
Total Market Capitalization
Table :-10Market price per shareTable showing Market price per Share of Mutual Trust Bank Ltd during 2005 to 2009.
Amount in TKYear Market Price Per Share
117
20052006200720082009
441.75342.25596.50319.75411.75
From the above table it indicates that the Market Price Per Share of Mutual Trust Bank Ltd.
There is an increasing and decreasing trend from 2005 to 2009. In 2005 the Market Price Per
Share was 441.75, in 2006 it was 342.25, in 2007 it was 596.5, in 2008 it was 319.75 and in
2009 it was 411.75.
This can be shown graphically in the following diagram:-
Market price per Share
118
Section: - F
SWOT Analysis
SWOT Analysis
119
SWOT analysis is an important tool for evaluating the company’s Strengths, Weaknesses, Opportunities and Threats. It helps the organization to identify how to evaluate its performance and scan the macro environment, which in turn would help organization to navigate in the turbulent ocean of competition.
Strengths:
Company reputation: MTBL has already established a favorable reputation in the banking industry of the country particularly among the new comers. Within a period of 5 years, MTBL has already established a firm footing in the banking sector having tremendous growth in the profits and deposits. All these have led them to earn a reputation in the banking field
Top Management: The top management of the bank is also major strength for the MTBL has contributed heavily towards the growth and development of the bank. The top management officials have all worked in reputed banks and their years of banking experience, skills, expertise will continue to contribute towards further expansion of the bank. At MTBL, the top management is the driving force and the think tank of the organization where policies are crafted and often cascaded down.
Facilities and equipment: MTBL has adequate physical facilities and equipments to provide better services to the customers. The bank has computerized and online banking operations under the software called MBS banking operations. Counting machines in the teller counters have been installed for speedy service cash counters. Computerized statements for the customers as well as for the internal use of the banks are also available.
Impressive branches: This creates a positive image in the minds of the potential customers and many people get attracted to the bank. This is also an indirect marketing campaign for the bank for attracting customers. 44 branches of the bank are impressive and are comparable to foreign banks.
Interactive corporate culture: MTBL has an interactive corporate culture. Unlike other local organization, MTBL work environment is very friendly, interactive and informal. There are no hidden barriers or boundaries while interacting among the superior or the subordinate. The environment is also lively and since the nature of the banking job itself is monotonous and routine, MTBL likely work environment boosts up the spirit and motivation of the employees.
Teamwork at mid level and lower level: At MTBL mid level and lower level management, there are often good team works. Many jobs are performed in groups of two or three in order to reduce the burden of the workload and enhance the process of completion of the job. People are eager to help each other and people in general are devoted to work.
Weaknesses:
120
Advertising and promotion of SME loan: This is a major set back for MTBL and one of its weakest areas. MTBL’s adverting and promotional activities are satisfactory but its SME loan is not advertised well. It does not expose its SME product to general public and are not in lime light. MTBL does not have neon sign or any advertisement for SME loan in the city. As a result people are not aware of the existence of this bank.
Low remuneration package: The remuneration package for the entry and the mid level management is considerably low. The compensation package for MTBL entry-level positions is even lower than the contemporary banks. Under the existing low payment structure, it will be very difficult to attract and retain higher educated employees in MTBL. Specially CRO are not satisfied with compensation package provided to them.
Opportunities:
Diversification: MTBL can pursue a diversification strategy in expanding its current line of business. The management can consider options of starting merchant banking or diversify in to leasing and insurance. By expanding their business portfolio, MTBL can reduce their business risk.
Product line proliferation: In this competitive environment MTBL must expand its product line to enhance its sustainable competitive advantage. As a part of its product line proliferation, MTBL can introduce the following products.
ATM: This is the fastest growing modern banking concept. MTBL should grab this opportunity and take preparation for launching ATM. Since MTBL is a local bank, they can form an alliance with other contemporary banks in launching the ATM.
Threats:
121
Multinational banks: The emergence of multinational banks and their rapid expansion poses a potential threat to the new growing private banks. Due to the booming energy sector, more foreign banks are expected to arrive in Bangladesh. Moreover, the already existing foreign bank such as Standard Chartered is now pursuing an aggressive branch expansion strategy. This bank is establishing more branches countrywide and already launched its SME operation. Since the foreign banks have tremendous financial strength, it will pose a threat to local banks.
Upcoming banks: The upcoming private local banks can also pose a threat to the existing private commercial banks like MTBL. It is expected that in the next few years more local private banks may emerge. If that happens the intensity of competition will rise further and banks will have to develop strategies to compete against an on slaughter of foreign banks.
Contemporary banks: The contemporary banks of MTBL such as Dhaka bank, prime bank and Dutch Bangla are its major rivals. Prime bank and other banks are carrying out aggressive campaign to attract lucrative clients as well as big time depositors.
Default culture: This is a major problem in Bangladesh. As MTBL is a new organization the problem of non-performing loans or default loans is very minimum or insignificant. However, as the bank becomes older this problem arises and the whole community suffers from this chronic diseases. MTBL has to remain vigilant about this problem so that proactive strategies are taken to minimize this problem if not elimination.
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Chapter: 4
Findings of the study
FINDINGS OF THE REPORT
123
Decision making process is very lengthy and sometimes it creates problems, which is
unexpected to the customers. Most of the cases Head Office control the decision
making and it is centralized.
MTBL has no own ATM booth. In this regard they use the booth of DBBL which
creates harassment to the customers in most of the times.
As the lack of employee, MTBL can not give enough time to the potential client for
his/her (client) own interest.
MTBL has not enough branches comparing to the other well known banks which
ultimately reduces the customer attraction to their services.
The bank provides only limited financial products and services where as other banks
provide more.
Customers have to wait a long when they come to take services because of shortage of
employee in front desk.
124
Chapter – 5
Recommendation & Conclusion of
the Study
125
Recommendations of the Study
In some cases especially in the urgent situation, the decision making power should be
decentralized by the head office to the branch office manager.
As a second generation bank, MTBL should establish its own ATM booth service not
only in Dhaka city but also all over the country.
MTBL should increase its total number of employees in all the branch level offices to
provide services to the existing as well as potential clients.
To expand its activities, MTBL should increase its number of branches in every
district of Bangladesh.
MTBL must introduce those types of services which have already been introduced in
the other banks and should innovate new type of service to attract the new clients.
Conclusion
Most of the banks in Bangladesh are offering a wide array of financial service including new
types of loans and advances and some whole new services are being launched every year.
Mutual Trust Bank Limited, a bank of difference, also has to discover new avenues to reach
its goals. It must be a people’s bank. For this it should go to people’s heart through various
schemes. It should diversify its credit portfolio so that in near future when competition among
banks will more serve it can stand with its own identity. Now MTBL has been trying to
operate its business successfully in Bangladesh since 1999 through developing an image and
goodwill among its clientele by offering its excellent services. The success has been resulted
from the dedication, commitment and dynamic leadership of its management. During the short
span of time of its operation, MTBL has successfully grabbed a position as a progressive and
dynamic financial institution in the country. By proliferation of new advance services,
expanding use of automated equipment and electronic transfer of financial information,
Mutual Trust Bank Limited will be a truly fascinating institution in the near future.
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Part - 3
127
Bibliography
I. “Financial Institution Management” (Anthony Saunders & Marcia Millon)
II. Gordon, E. & Natarajan, K., Banking: Theory, Law & Practice, Himalaya Publishing House, Mumbai, 1996.
III. Kashem, M.A., Documentation for Loans and Advances, Talk Synopsis.
IV. Chowdhury, L.R., A Textbook on Foreign Exchange, Fair Corporation, Dhaka, 2000.
V. Ali, S.A.,Foreign Exchange and Financing of Foreign Trade, Lita Academics, Dhaka, 1995.
VI. Farooqi, Q.G.M.,Charging of Securities, Talk Synopsis.
VII. Chowdhury L.R.A Textbook On Foreign Exchange, Fair Corporation, Dhaka.
VIII. www.mutualtrustbank.com
IX. www.bangladesh-bank.orgs
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Appendix
Financial Statements of Mutual Trust Bank Limited (MTBL)
129
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