Executive Summary

In this study outsourcing is defined as the organizational practice of contracting for services from an
external entity while retaining control over assets and oversight of the services being outsourced. In
the 1980s, a number of factors led to a renewed interest in outsourcing. For private sector
organizations, outsourcing was identified as a strategic component of business process reengineering
an effort to streamline an organization and increase its profitability. In the public sector, growing
concern about the federal budget deficit, the continuing long-term fiscal crisis of some large cities,
and other factors accelerated the use of privatization1 measures (including outsourcing for services) as
a means of increasing the efficiency of government.
This is an orientation report that contains the real life day to day working experience of different tasks
in Credit Department of Mutual Trust Bank Limited, Panthapath Branch. Mutual Trust Bank Ltd,
(MTB) is a pioneer and leading private bank in Bangladesh. To serve the nation Mutual Trust bank
performs some activities for their clients like: general banking, loan and advance, capital market
operation etc. Bank collects deposit from public and provide its to other business or individual as
loan.

Bank pays interest to deposit holder and take interest from borrowers. Mutual Trust bank

measure all risk components before sanctioning a loan. When all the formalities completed then
respective officer disburse the loan. After disburse the loan it is duty of bank to recover the disbursed
loan. This report is based on actual information and working procedure practiced in MTB. The overall
credit management of MTB has analyzed to give a clean idea about the policy of MTB and
implementation of that policy by various mechanism and process. The objective of this study is to
analyze the credit policy, rules and regulation of credit management and evaluation of the product
performance in order to identify the major problems regarding the credit management.
This report consists of an introductory part of this report, which has been developed for the proper
execution of the entire report. In the second part, a brief description about the host organization of my
internship, Mutual Trust Bank Limited, has been given. In the third part of this report consist of
the theoretical aspects. In part four consists of some information about credit, its usefulness and
credit management policy of Mutual Trust Bank. The remaining part consist the analysis, findings,
recommendations and conclusion.

Part 1
Prefatory Part

1.1 Introduction
In general sense we mean Bank as a financial institution that deals with money. There are
different types of banks like Central bank, Commercial bank, Savings bank, Investment bank,
Merchant bank, Co-operative bank etc. But when we use the term bank it generally means
commercial bank that is one which is concerned with accepting deposit of money from the
public, repaying on demand or otherwise and withdraw able on demand or otherwise and
employing the deposits in the form of loan and investment to meet the financial needs of business
and other classes of society.
Now-a days banking sector is modernizing and expanding its hand in different financial events
every day. At the same time the banking process is becoming faster, easier and is becoming wider.
In order to survive in the competitive field of the banking sector all organizations are looking for
better service opportunities to provide their fellow clients. So it has become essential for every
person to have some idea on the bank and banking procedure.
Mutual Trust Bank is a financial institution whose main objective is the mobilization of fund from
surplus unit to deficit unit. In the process of acceptance of deposits and provision of loan, Bank
creates money. This characteristics feature sets Bank apart from other financial institution. The
bank can influence the money supply through lending and investment. The bank is an economic
institution whose main objective is to earn profit through exchange of money and credit
instruments.

1.2 Origin of the Report

Group Assignment program is essential for every BBA student because it helps him or her to
acquaint with the real life situation. As bank is one of the most important financial intermediaries;
so we have selected Mutual Trust Bank Limited (MTBL) which is one of the most leading
banks in the new banking arena.
MTBL arranges this Assignment program to gather practical knowledge about banking activities
& managerial functions. This is followed by practical experiences in the branches of MTBL. Our
topic for this Group Assignment is Managerial Functions in the Context of Bangladesh
placed in the Panthapath branch of MTBL.

1.3 Objectives of the study

Broad Objective:
The first objective of writing the report is fulfilling the partial requirements of the
Management in Financial institutions course.
Specific Objective:
The general objective of this report is to fulfill the requirement of course.
To acquire practical experience in different banking services of Mutual Trust
Bank Limited.
To gather knowledge about the transaction of different department of the branch.
To know about the Credit products and the way of disbursement.
To problem-prospect for investment.
Make the best effort to penetrate into the entire society with particular emphasis
on low income groups.
To inform the banking credit facilities to the mass people.
To make inspiration for micro credit as well as industrial loan by which more
employment can be created.

1.4 Scope of the study

In Mutual Trust Bank, Panthapath branch we get much facilities because of existing employee of
the branch.

Many helpful colleagues who give us lot of information.

Assistance of local management at any time.

Internet and bank website is very much upgrade.

Supply of financial data.

1.5 Limitations of the study

The Group Assignment was not free from limitations. We faced some problems during the study,
which I am mentioning them as below:
Lack of time: We had to complete this report within a very short span of time that was not
sufficient for investigation.
Lack of Supervision: As the officers were busy with their daily work, they could provide
us very little time. Sometimes, they didnt want to supervise due to pressure of work load.
Restricted Information: There are various information the bank officer didnt provide
due to security and other corporate obligations.

1.6 Methodology of the study

Sources of Data
The report is descriptive in nature. The information was collected from both primary and
secondary sources of data. Regarding the information required was collected within the
organization from the Corporate Division of Mutual Trust Bank Limited.
Primary data

Face to face conversation with the respective officers and clients.

Questionnaire survey of Bank customer.

Personal observation.

Relevant file study as provided by the officers concerned.

Secondary data

Study on Annual Reports of Mutual Trust Bank Limited.

Online data from MTBL website.

Published or unpublished or personally collected data from officers, Local officers and
Head office of the Mutual Trust Bank Limited.

Different journal regarding Mutual Trust banking.

Part 2
Organizational
Profile
Of
MTBL

2.1 Introduction of MTBL

Mutual Trust Bank Limited (MTBL) is one of the leading third generation private sector
commercial banks that started its banking operation in Dhaka on October 24, 1999. It has focused
on the established and emerging markets of Bangladesh. Concentrating hard on the activities of its
area of specialization, MTBL has been able to achieve excellent market standard with competent
customer service. By means of such measures the bank intends to grow and increase shareholders'
value. Mutual Trust Bank pledges to maximize customer satisfaction through services and build a
trusting relationship with customers, which has stood in the test of time for the last nine years.
The emergence of Mutual Trust Bank Limited was at the juncture of liberalization of global
economic activities. Not only this, it comes forward at a crucial state of affairs when Bangladesh
was undergoing through economic reforms and trade liberalization according to the Uruguay
Round Agreement, World Bank (WB) and International Monitory Fund (IMF) recommendations.
The experience of the prosperous economies of the Asian countries, in particular of South Asia,
has been the driving force and the strategic operational policy option of the bank.

Mutual Trust Bank at a glance:

Head Office

68 Dilkusha C/A, Dhaka.

Corporation Set-up

Public Limited Company

Certificate of Incorporation

September 29, 1999

Certificate of Commencement of Business

1999

Commercial operation

October 24, 1999

First Branch opened

October 24, 1999

Listing of Shares

DSE & CSE

Number of Branches

43

Main operational areas

Dhaka, Chittagong & Sylhet

2.2 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 Authorized
Capital of Tk. 38,00,000,000 divided into 38,000,000 ordinary shares of Tk.100 each.
The Company was also issued Certificate for Commencement of Business on the same day and
was granted license on October 05, 1999 by Bangladesh Bank under the Banking Companies Act
1991 and started its banking operation on October 24, 1999. The bank conducts all types of
commercial banking activities including foreign exchange business and other financial services.
During the first two years of operations, the bank's main focus was on the delivery of personalized
customer services and expansion of its clientele base. 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.
II.

All types of commercial banking activities including Money Market operations.

Investment in Merchant Banking activities.

III.

Investment in Company activities.

IV.

Financiers, Promoters, Capitalists etc.

V.

Financial Intermediary Services.

VI.

Any related Financial Services.

The Company (Bank) operates financial activities through its Head Office situated at Dhaka and 73
branches. The Bank carries out international business through a Global Network of Foreign
Correspondent Banks.
Memberships of MTBL
1.
2.
3.
4.
5.
6.
7.
8.

Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI, D)

The Institute of Bankers Bangladesh (IBB)
Bangladesh Foreign Exchange Dealers Association (BAFEDA)
Bangladesh Institute of Bank Management (BIBM)
International Chamber of Commerce Bangladesh Limited (ICCB)
Association of Bankers Bangladesh Limited (ABB)
Bangladesh Association of Publicly Listed Companies (BAPLC)
American Chamber of Commerce in Bangladesh (AMCHAM)

2.3 Mission & Vision of MTBL

Mission

We aspire to be one of the most admired banks in the nation and be recognized as an innovative
and client-focused company, enabled by cutting-edge technology, a dynamic workforce and a
wide array of financial products and services.--- MTBL Group.
Vision
Mutual Trust Bank's vision is based on a philosophy known as MTB3V. The organization
envisions MTB to be:
a) One of the Best Performing Banks in Bangladesh.
b) The Bank of Choice.
c) A Truly World-class Bank.

2.4 Banks Philosophy

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

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

To establish a partnership relationship with customers and to eliminate the idea of the
debtor-creditor relationship of traditional banks.

To establish welfare oriented banking system.

To mobilize savings towards productive sectors.

To invest on profit and risk sharing basis.

To accept deposits on profit and loss sharing basis.

To create employment opportunities by investing savings towards prospective

economic sectors.

To extend banking services towards the poor, helpless and low-income group of
people in the society in order to uplift of their standard of living.

To contribute to establishment of a society by equitable distribution of wealth.

To establish justice in trade and commerce in the country.

To render services for the economic development of the nation.

2.6 Functions
The functions of Mutual Trust Bank Limited are as follows:

To maintain all types of deposit accounts with online facilities.

To conduct foreign exchange business.

To extend other banking services.

To conduct social welfare activities.

Part 3
Body of the
Report

3.1 Credit

The word credit comes from the Latin word Credo meaning I believe. It is a lenders trust
in a persons or firms or companys ability or potential ability and intention to repay. Credit is
a contractual agreement, in which a borrower receives something of value now, with
the agreement to repay the lender at some date in the future(Kothari, 2013). One of the basic
functions of the bank is deposit extraction and credit extension. Managing credit operations is
the crying need for any bank.
The objective of the credit management is to maximize the performing asset and the
minimization of the non-performing asset as well as ensuring the optimal point of loans and
advances and their efficient management.

3.2 Factors Considered for Credit

Time

Operating Expense

Risk

Interest Rate

Legal Considerations

Finance Charge

Inflation

3.3 Significance of Credit

Business cycle can run well only by the help of lending system
It helps to create employment opportunities
Credit plays a vital role in national economy in the following waysIt provides working capital for industrialization
Credit controls almost all kinds of production activities of the country
It brings social equity
Cash generation occurs for its successful performance
Economic stabilization
Raise standard of living.

3.4 Credit Management

Credit management is a dynamic field where a certain standard of long-range planning is
needed to allocate the fund in diverse field and to minimize the risk and maximizing the
return on the invested fund. Continuous supervision, monitoring and follow-up are highly
required for ensuring the timely repayment and minimizing the default. The overall success in
credit management depends on the banks credit policy, portfolio of credit, monitoring,

supervision and follow-up of the loan and advance. Therefore, while analyzing the credit
management of MTB, it is required to analyze its credit policy, credit procedure and quality of
credit portfolio.

3.5 Credit Policy of MTB

One of the most important ways, a bank can make sure that its loans meet organizational and
regulatory standards and they are profitable. It is important to establish a loan policy. Such a
policy gives loan management a specific guideline in making individual loans decisions and
in shaping the banks overall loan portfolio. In Mutual Trust Bank Limited there is perhaps a
credit policy but there is no credit written policy.

3.6 Principles of Credit

In the feature, credit principles include the general guidelines of providing credit by branch
manager or credit officer. In Mutual Trust Bank Limited they follow the following guideline
while giving loan and advance to the client (Edwards, 2004).

All credit extensions must comply with the requirement of Bank Company Act and
the Central bank.

Not to extend credit to the persons/entities not supported by CIB report.

To maintain judicious ratio between loan and deposit. To allow credit in a manner
which in no way compromises with banks standard of excellence.

Extension of credit normally from customers deposits and not out of short term funds
or borrowing from other banks.

To optimize risk and reward.

To ensure ethical standard in all credit activities.

To extend credit in the areas, risk of which can be sufficiently understood and
managed.

To extend credit facility upon adequate pre investment analyses and repayment
capacity of the clients.

To avoid excessive credit concentration through rational diversification of credit.

To avoid name lending.

To allow credit on business consideration after ascertaining viability, credit

requirement, quality of advance, security offered, cash flows and level of risks.

3.7 Principles of Sound Lending

It should be clearly understood that the criteria/principles are not inflexible laws & are given
as guidelines for protecting credit. In a practical competitive world, risks are defined,
accepted and credit is often granted even though a proposal does not strictly with
some of the criteria described below.The basic lending criteria can be considered as eight
main headings, as follows:
a) Principle of Safety
b) Principle of Liquidity
c) Principle of Purpose
d) Character and ability of the borrower
e) Principle of Security
f) Principle of profitability
g) Source of repayment
h) Principle of National Interest

Each of the headings will now be discussed further in the following paragraph:
Principle of Safety
The first lending Principle of sound lending is safety. The very existence of a bank
depends upon the safety of its advances. So utmost care should be exercised to ensure

that the funds go to the right type of borrower, are utilized in such a way that they
remain safe and the repayment comes in the normal course.
Principle of Liquidity
Liquidity means the availability of Bank funds on short notice. The liquidity of an
advance means it repayment on demand on due date or after a short notice. Therefore,
the banks must have to maintain sufficient liquidity to repay its depositors and tradeoff between the liquidity and profitability is must.
Principle of Purpose
The bank should not lend money for any purposes for which a borrower may be free
from all risks but if the funds borrower are employed for unproductive. Purpose like
marriage ceremony, pleasure trip etc. or speculative activities, the repayment in the
normal course will become uncertain. Banks therefore discourage advances from
boarding stocks and refuse advances for speculative activities.
Character and ability of the borrower:
The primary responsibility of the leading banker is know your customer and his
business. While considering the character and ability of a borrower, the following
point must be kept in mind.

Do know your customer already?

Was he respectively introduced?

If he was previously customer of another bank, why has he come to United

Commercial Bank Ltd. Try to see previous bank statement?

Have you made the account opening inquiries required by the bank?

What are the business its ownership?

What is the customers background and financial track record?

Customers honesty & integrity and personal stability?

How has the customer managed his financial circumstances in the past?

The branch manager should have the answer of the above queries and should be to
judge his ability to use the credit facilities to his advantage. Advance should be
granted only to those borrowers in whom the branch manager has full confidence.
Principle of Security

The security offered by a borrower for an advance is insurance to the banker. It serves
as the safety value for an unforeseen emergency. The security accepted by a banker to
cover a bank advance must be adequate, readily marketable, easy to handle and free
from any encumbrance.
Principle of Profitability
The working funds of a bank are collected mainly by means of deposit from the
public and interest has to be paid on those deposits. Banks have also to meet their
establishment charges and other expenses. Interest earned by a bank on its advance is
the main source of its income (Bucci, 2011). The difference between the interest
received on advances and the interest paid on deposits constitute a major portion of
the bankers income. The bank will not enter into a transaction unless a fair return
form it is assured.
Source of Repayment
After the branch manager has ensured that the credit will be a profitable
propositioning for the bank, he should then turn his attention to the cash flow
situation of the borrower. The banks credit can be classified into three main
categories, as follows:

1.

A very short-term advance will be liquidated by funds received in the very

near future, such as advances against foreign or local bills or bridge
functioning where evidence of credit sanction from another financial
institution is available.

2.

Provision for current assets; this type facility is needed for trading and /or
manufacturing activities.

3.

Long term loans, generally over 5 years; example of such facilities as

investment in plant and machinery, a farm or a shop, generally, a long term is
repaid out profits generated by the business.

3.8 Global Credit Portfolio Limit of MTB

The features which deals with how much total deposits would be used as lending the proportion of
long term lending, customer exposure, country exposure, proportion of unsecured facility etc. the
most notable ones are:
The aggregate of all cash facility will not be more than the 80% of the customers deposit and
Long term loan must not exceed 20% of the total loan portfolio. Facilities are not allowed for a
period of more than 5 (Five) years. Credit facilities to any one customer group shall not normally
exceed 15% of the capital fund or TK. 100 cores.
3.9 Type of Credit Activities:
Credit may be classified with reference to elements of time, nature of financing and provision
base.
3.9.1

Classification on the basis of time

On the basis of elements of time, bank credit classified as:

Continuous loan:
These are the advances having no fixed repayment schedule but have a date at which
it is renewable on satisfactory performance of the clients. Continuous loan mainly
includes "Cash credit both hypothecation and pledge" and "Overdraft".

Demand loan:
In opening letter of credit (L/C), the clients have to provide the full L/C amount in
foreign exchange to the bank. To purchase this foreign exchange, bank extends
demand loan to the clients at stipulated margin. However, as soon as the L/C
documents arrive, the bank requests the clients to adjust their loan and to retire the
L/C documents. Demand loans mainly include Payment against Documents, "Loan
against imported merchandise (LIM)" and "Later of Trust Receipt"(Laurin and
Majnoni, 2003).

Term loan:

These are the advances made by the bank with a fixed repayment schedule. Terms
loans mainly include "Consumer credit scheme", "Lease finance"," Hire purchase",
and "Staff loan". The term loans are defined as follows:

Short term loan: Up to 12 months.

Medium term loan: More than 12 months & up to 36 months

Long term loan: More than 36 months.

Table 4: Classification on characteristics of financing of Mutual Trust Bank Limited

Funded
Overdraft
Loan
Consumer Credit
LTR
PAD
Cash Credit (Pledge & Hypo)
Staff Loan
Term Loan

Non-funded
Letter of Credit
Bank Guarantee
-------------

Short Term Agricultural Loan and Micro Credit

These loans are short term credits enlisted by Agricultural Credit division of
Bangladesh Bank in its annual loan program. Loans disbursed in agricultural sector
for a period not more than 12 months are also included in this category. Short term
micro credits are the credits not exceeding BDT 25,000/- (taka twenty five thousand)
only and repayable within twelve months.

3.9.2

Application Based Categories of Loan

Based on the purpose of the loan, loans are classified as follows:

Corporate Loan:
Any loan exceeding 1, 00, 00,000 BDT and issued for business and trade purposes is
defined as corporate loan. Such loans mainly serve the purpose of initials for the
establishment of industry or large scale factory.
SME (Small & Medium Enterprise) Loans:
This type of loan is disbursed for business purposes but the amount loaned does not
exceed 1, 00, 00,000 BDT. The amount loaned here serves the purpose of potential
(partial) working capital for small and medium business ventures.
Retail Loan:
Retail loans are given for personal usage rather than for business purposes. It includes
auto loan, personal loan, vacation loan, and home loan.
MTB Personal Loan (Consumer Credit Scheme):
MTB Personal Loan is simple, convenient and quick.
Features:
Loan amounts from Tk. 50,000 to Tk. 10,00,000
Flexible repayment option of 12 60 months
No hidden charges
Competitive interest rate
Easy documentation and quick processing
Option for early settlement
Eligibility:
Age minimum 21 and maximum 60 years at loan maturity.
Experience:
Salaried person: 1 year with 6 months permanent employment status
Self-employed:
1 year of practice in the profession
Businessperson:
2 years of involvement in the same nature of business
Minimum monthly income:
Salaried executive Tk. 15,000

 Loan Balance transfer or Take over:

Customers enjoying EMI based personal loan with other banks may enjoy the facility
of Loan Balance Transfer.
Eligibility:
Minimum 6 loan EMI repayment with existing bank
Minimum takeover loan amount is Tk. 200,000 and maximum Tk. 9,50,000
Benefits of Takeover Plan:
No processing fee for loan takeover or balance transfer
Interest rate will be 1% less than ongoing rate
Approved loan amount may be higher than the takeover loan amount
MTB Auto Loan:
MTB offers lucrative interest rates that would pleasantly surprise the customer. MTB
Auto Loans are built for utmost speed and competence. MTB Auto Loan is available
for financing both new and reconditioned cars.
Features:

Loan amounts from Tk. 3,00,000 to Tk. 20,00,000

Flexible repayment of 12 60 months

No hidden charges

Competitive interest rate

Easy documentation and quick processing

Option for early settlement

Eligibility:
Age: minimum 21 and maximum 60 years at the end of loan maturity
Experience: Salaried executive total 2 years
Business person/self-employed 2 year
Monthly income: Minimum Tk. 30,000

MTB Home Loan:

Planning to own a home is one of lifes most rewarding challenges. Whether it is
purchasing a new house or a new apartment, MTB has a wide range of home loan
options that can be customized to your specific need. An experienced, dedicated team

of experts and a complete loan package is in place, to meet all your housing finance
needs. MTB Home Loan helps the clientto fulfiltheir dreams.
Features:
Loan for residential apartment/house purchase
Loan amounts from BDT 5,00,000 to BDT 1,00,00,000
Loan tenor from 3 to 25 years
Loan amount up to 80% of the property value
Aggregation of co-applicants income
Competitive interest rates
Quick and simple processing and approval time
Loan for apartment under construction
Partial or early settlement options available
Eligibility:

Any financially able person

Age: minimum 21 and maximum 65 years at loan maturity

For 100% cash covered loan: Age- minimum 18 and maximum 70 years at
loan maturity

Minimum Income Range:

Salaried person Tk. 25,000

Self-employed Tk. 30,000

Businessperson/Land lord/Land lady Tk. 40,000

Experience:
Salaried person: 3 years
Self-employed: 3 years
Businessperson: 3 years
3.10

Rates of Interest and Lending

Table 5: Rates of Interest & Landing

Number
1

Agriculture

12.50% (Highest) *

Term loan to large, medium, small & cottage

Working Capital

13.00% (Highest)**

Large and Medium Scale

15.50% (Mid-Rate)

Small Scale

15.50% (Mid-Rate)

Export Finance (PC, ECC)

7.00% (Highest)**

Commercial Lending

16.00% (Mid-Rate)

Import Finance

General

Essential Goods (rice, wheat, edible oil,

12.00%

lentils, chickpeas, onion, date and sugar)

7

15.50% (Mid-Rate)

(Highest)*

Housing Loan

Commercial

16.00% (Mid-Rate)

Residential

14.00% (Mid-Rate)

Consumer Credit

18.00% (Mid-Rate)

Lease Finance

16.50% (Mid-Rate)

10

Loan to Non-Banking Financial Institutions

15.50% (Mid-Rate)

11

Loan/SOD against FDR of MTB

3.00% above FDR interest

12

SOD against FDR of other Banks

16.50% (Mid-Rate)

13

Loan/SOD against other Special Deposit

3.00%

14

Auto Loan

16.50% (Mid-Rate)

15

Small Business Loan under SME

16.50% (Mid-Rate)

16

Others

16.50% (Mid-Rate)

above

Deposit

3.11 Different Securities for Different Types of Advances

Securities offered to the bank by the borrowers are of different types. Each security has its own
suitability. Some of the examples of the securities obtained by the banks while allowing advance
are shown below against the types of advancesTable 6: Different Securities for Different Advances

Types of advances

Securities

House building loan

Primary securities: mortgage of the land or

any property

Transport loan

Primary securities: joint registration and

Comprehensive insurance policy. Two
valuable guarantors.
Collateral securities: mortgage of land or any
property. Any type financial obligation.

Auto loan

Primary securities: joint registration and

Comprehensive insurance policy. Two
valuable guarantors and post-dated cheques.

Any purpose loan

Primary securities: two valuable guarantors

And post-dated cheques.

Payments against documents(PAD)

Pledge or hypothecation of stock-in trade,

Goods, produce and merchandise, machineries, land
or building on which machineries are installed.

Loan
against
merchandise

Pledge of imported merchandise

Loan against trust receipt

Local bills purchased
Foreign bill purchased
Overdraft

imported

Trust receipt in lieu of import document

Bill itself
Shipping documents for exports
Primary securities: hypothecation of book
depth

Part 4
Recommendation
& Conclusion

4.1 Recommendation:
After working for this period, our recommendations for the bank are:
The Branch should move to the fully automated banking system. This will save a
lot of time of personnel working here and will increase their and the Banks
performance thereby.
In case of importing goods the Bank should aware about over invoicing so that
nobody can get chance to send money abroad illegally.
In case of exporting goods the Bank should aware about under invoicing so that
nobody can get chance to avoid Tax, Vat, and Duty.
If the bankers can scrutinize the Commercial invoice it will decrease the Money
Laundering.
The Assistant Commissioners of Tax can contribute more. They must be more
careful about invoicing and restricted products.
The bankers must be careful in financing international trade So that, the bank
does not fall in bad loss provision sated by BB.
Bank should fixed-up specific types of client strategy according to the different
character of client.
Commission income occupies the major part of the total earnings of a bank and
banks profitability mainly depends on commission earning capacity, so research
and development cell of the bank should put more effort for the purpose of
introducing an efficient Foreign Exchange department.
Human resource is another sector for the branch to be developed urgently. Human
resources in the branch need to be equipped with adequate banking knowledge.
They should have basic knowledge regarding money, banking, finance and
accounting. Without proper knowledge in these subjects, efficiency cannot be
optimized. Bank can arrange sufficient training program on these subjects.
Many times, the branchs photocopier remains out of order. Printers are of
obsolete technology. ACs gets out of order frequently. Attention should be given
on proper maintenance and replacement of phone, computer, printer fax, machine
and photocopier.
The management should impart more imphasis on the advertisement of the bank
in different electronic and printing media. The Basic goal of the advertisement
should be firstly to make people know and understand that the bank is universal

one and permits anyones access.

The spread out mechanism of the bank should be faster and progressive as well.
Being established in 1999, the bank has established only 41 branches and 8 SME
Centers in ten (10) years. The mode of extension is much slower than other
contemporary and equivalent banks. Branches should be opened in every
industrial and commercial corner of the country.
More products of varied interests should be introduced for the diversified client
group. Opportunity in retail banking lies in the fact that the countrys increased
population is gradually learning to adopt consumer finance. The greater bulk of
our population is of middle classed. Different types of retail lending products
would create great appeal to this mammoth class. So a wide variety of retail
lending products has a very large and easily pregnable market.

4.2 Conclusion:
Banking industry in Bangladesh is now on the right track. The banks are contributing much
than the previous years for the growth and development of the country. Credit for such
contribution by the industry goes to the Bangladesh Bank. Banking industry is much
organized because of strong vigilance and supervision of Bangladesh Bank. In the industry,
Mercantile Bank is one of the pioneers in many criteria. MTBL is committed towards the
excellence in the service with efficiency, accuracy and proficiency. Like of most of the
commercial banks, foreign exchange department is one of the most important departments of
MTBL. Perhaps, it is the most important department of the Bank. This department is driving
the bank from the front. Through the import, export and foreign remittance operations, this
department is making a great contribution to the bank and the economy as a whole. If it is said
that this department of the bank is running according to all of the ideal principles of modern
foreign exchange business mentioned in the book, it will be exaggerated. Despite problems
and weaknesses, it is driving the bank from the front. With an easy to understand operating
guidelines, transparent operating procedure and a team of highly knowledgeable and
proficient personnel, this department is expanding and excelling itself day by day.

Bibliography
Type

Examples
Books(Print & online)

Book,2 author

Debnath,

R.

M,

1stedition,Dhaka,

Busines
Lotus

of

Banking,

Publishers,

2004,

Lesikar, Raymond V. Pettit, John D. Jr, 1998,

Business Communication Theory, Business
English- Mary Joyce Burnett, Atta Dollar,
Book, Edition

And Application, 6th edition.

Journal Articles

Journal Article, 1 author

Manual of Mutual Trust Bank Limited (2006,

2007), Mutual Trust Bank Limited, Annual
report of 2010, Export Import Policy order,
Guideline for Foreign Exchange Transaction
Volume-I & II (Published by Bangladesh Bank)
,The Import and Export policy, International
Standard Banking Practice (ISBP) approved by
the ICC Banking Commission

Web Documents
Web Site

http://www.mutualtrustbank.com,
http://www.bangladesh-bank.org,
http://www.epb.gov.bd