Corporate Social Responsibility of Mutual Trust Bank

Ltd.

Department of Management Studies

Faculty of Business Studies
Jagannath University

Internship Report
on
Corporate Social Responsibility of Mutual Trust Bank Ltd.

Supervised By:
Prof. Dr. Md. Golam Mostafa

Submitted By:
Khairul Molla
BBA (6th Batch)
ID: 114989 Session: 2010-11

Date of Submission:
31 August 2015

Department of Management Studies

Jagannath University, Dhaka

Letter of Transmittal

31 August, 2015
Prof. Dr. Md. Golam Mostafa
Department of Management Studies
Jagannath University, Dhaka
Subject: Transmission of the report Corporate Social Responsibility of Mutual Trust
Bank Ltd.

Dear Sir,
I am grateful to you for the submission of the report on Corporate Social Responsibility of
Mutual Trust Bank Ltd. in the completion of the requirement for internship. This report tries
to find out the operation of CSR Activities department of Mutual Trust Bank Ltd. along with an
overview of the bank. I have my utmost effort to reflect experience, skill and knowledge, which I
acquired at the time of working at Mutual Trust Bank Ltd.

Sincerely,

Khairul Molla
ID # 114989
BBA (6th Batch)
Department of Management Studies
Faculty of Business Studies
Jagannath University, Dhaka

ii

Declaration
I affirm that the Internship Report titled Corporate Social Responsibility of Mutual Trust
Bank Ltd. being submitted for the internship part of BBA program is the original work carried
out by me. It has not formed the part of any other reports submitted as internship report either in
this or any other University.

Thanks and Regards

Yours Truly

Khairul Molla
ID: 114989 Session: 2010-11
Department of Management Studies
Jagannath University, Dhaka

iii

Certificate from Supervisor

This is to certify that the internship report on Corporate Social Responsibility of Mutual Trust
Bank Ltd. is done by Khairul Molla ID no: 114989 as a part fulfillment of the requirement of
BBA program from Department of Management Studies, Jagannath University. The report has
been prepared under my guidance and is a record of the fide work carried out successfully.
I wish him every success in his future life.

-----------------------------------------------------

Prof. Dr. Md. Golam Mostafa

Supervisor
BBA Internship Program
Department of Management Studies
Jagannath University, Dhaka.

iv

Acknowledgements
First of all I offer my grateful thanks to the Almighty, without whose blessings this report wouldnt
have been possible. Then I would like to thanks some specific person who helped me a lot to
prepare this report.
Secondly I would like to thank my Internship Supervisor Prof. Dr. Md. Golam Mostafa, for giving
me the opportunity to prepare my report on CSR Activities of Mutual Trust Bank Ltd.
I have learned many things while I was preparing this report and I think it will help me in my
future workplace. So I would like to thanks him for giving me instructions in preparing this report.
I would like to thank Mr. Samsul Alam Manager & SVP, MTB Babu Bazar Branch for his support
during the time of my internship.

Table of contents
Contents
Letter of Transmittal------------------------------------------------------------Declaration-----------------------------------------------------------------------Certificate from Supervisor----------------------------------------------------Acknowledgements-------------------------------------------------------------Abbreviations--------------------------------------------------------------------Executive Summary------------------------------------------------------------Chapter -1
Introduction
1.1 Introduction
1.2 Background of the report -----------------------------------------------------1.3 Objective of the study----------------------------------------------------------1.4 Methodology of the study------------------------------------------------------1.5 Sources of Information---------------------------------------------------------1.6 Significance of the Study ------------------------------------------------------1.7 Scope of the Report ------------------------------------------------------------1.8 Limitation of study -------------------------------------------------------------Chapter -2
Overview and Activities of MTBL
2.1 An overview of Mutual Trust Bank Limited--------------------------------2.2 MTB Vision---------------------------------------------------------------------2.3 MTB Mission--------------------------------------------------------------------2.4 Strategic Objectives ------------------------------------------------------------2.5 Management Hierarchy --------------------------------------------------------2.6 Capital Structure ----------------------------------------------------------------2.7 Credit Rating Report------------------------------------------------------------2.8 Products and Services provided by MTBL----------------------------------2.9 Mutual Trust Bank LTD. Babu Bazar Branch------------------------------2.10 Lessons Learned From the Internship Program-----------------------------Chapter -3
Theoretical Part
3.1 Corporate Social Responsibility (CSR) -------------------------------------3.2 Views of Social Responsibility-----------------------------------------------3.3 Types of corporate social responsibility-------------------------------------3.4 Some others types of CSR-----------------------------------------------------3.5 Advantages of Corporate Social Responsibility----------------------------3.6 Potential business benefits-----------------------------------------------------3.7 CSR Standards and Practices--------------------------------------------------3.8 Banking Sector in Bangladesh and CSR Practice--------------------------3.9 MTB Corporate Social Responsibility (CSR) ------------------------------3.10 Some Recent CSR Activities of MTBL--------------------------------------

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Chapter -4
Analysis of CSR Activities of MTBL
4.1 CSR activities of Banking Sector in Bangladesh---------------------------4.2 Trends of sectorial pattern of direct CSR expenditure --------------------4.3 Mutual Trust Bank CSR Expenditure----------------------------------------4.4 MTB CSR expenditures as % of after tax profit----------------------------4.5 MTB CSR expenditures in Education Sector-------------------------------4.6 Findings -------------------------------------------------------------------------Chapter -5
Recommendation and Conclusion
Recommendation----------------------------------------------------------------Conclusion-----------------------------------------------------------------------References------------------------------------------------------------------------

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33-34
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List of Figures
Figures
Figure 1: Management Hierarchy of MTB-------------------------------------------Figure 2: CSR expenditure By Bank 2010-2013 (Million Tk.)--------------------Figure 3: Trends of sectorial pattern of direct CSR expenditure------------------Figure 4: Mutual Trust Bank Ltd. CSR Expenditure (2010-2013)----------------Figure 5: MTB CSR expenditures as % of after tax profit-------------------------Figure 6: MTB CSR expenditures in Education Sector------------------------------

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List of Tables
Tables
Table 1: Authorized & paid up Capital of MTB(2010-14)-------------------------Table 2: CRAB Rating (2012-13)-----------------------------------------------------Table 3: CSR expenditure By Bank (Million Tk.)-----------------------------------Table 4: Trends of sectorial pattern of direct CSR expenditure-------------------Table 5: MTB CSR Expenditure (2010-2013)---------------------------------------Table 6: MTB CSR expenditures as % of after tax profit--------------------------Table 7:MTB CSR expenditures in Education Sector-------------------------------

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Abbreviations
A/C
ATM
BB
BDT
BGMEA
CD
CEO
CIB
CR
CRAB
CSR
DD
EPB
FDI
FDR
GDP
HR
IBM
ICT
ISO
IT
L/C
MDRI
MICR
MTB
NRB
PO
PR
RM
SB
SME
SWIFT
TIN
VAT

=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=

Account
Automated Teller Machine
Bangladesh Bank
Bangladeshi Taka
Bangladesh Garment Manufacturers and Exporters
Current Deposit
Chief Executive Officer
Credit Information Bureau
Corporate Responsibility
Credit Rating Agency of Bangladesh
Corporate Social Responsibility
Demand Draft
Export Promotion Bureau
Foreign Direct Investment
Fixed Deposit Receipt
Gross Domestic Product
Human Resource
International Business Machine
Information & Communication Technology
International Standard Organization
Information Technology
Letter of Credit
Management and Resources Development Initiative
Magnetic Ink Character Recognition
Mutual Trust Bank Ltd.
Non Residence Bangladeshi
Pay Order
Public Relation
Risk Management
Savings Bank
Small and Medium Enterprise
Society for Worldwide Inter-bank Financial Telecommunication
Tax Identification Number
Value Added Tax

viii

Executive Summary
This report is based on Corporate Social Responsibility of Mutual Trust Bank Ltd.. This
research has tried to find to out CSR activities in details, various CSR activities, Intensity of
various sectors of CSR in CSR Budget and whether any link exists between Company
performances and CSR activities in context of Mutual Trust Bank Ltd., Bangladesh.

Mutual Trust Bank Ltd. defines CSR in three dimensions 1. Education (30%) 2. Health and
Nutrition (20%) 3.Others (50%). There is no guideline about CSR in Bangladesh, although
Bangladesh bank has handled a two page document about CSR to Banks. Mutual Trust Bank Ltd.
does not use voluntary guidelines. So, there is no specified procedure for implementation of CSR.
Whenever a person or entity is in need of money, normal application for aid is submitted by them
and then the application is verified by the personnel responsible for managing CSR.

At the end of this research it was found that there is no significant relationship between THE
MUTUAL TRUST BANK LTDs Corporate Social Responsibility and Corporate Financial
Performance. There some challenged perceived by Mutual Trust Bank Ltd. of Bangladesh such as
lack of transparency and immoral behavior of concerned person of CSR ,no specified or detailed
guideline served by Bangladesh Bank ,in some aspects, CSR is practiced as legalized way to
extortion by political parties.