Chapter One

Introduction

1.1Introduction
Well- educated, dedicated, skilled and enterprising workforce is the sine-qua-non for the
progress and development of a service oriented industry like Bank. From very first
1

emergence and inception of modern civilization, Bank plays a pivotal role in case of
overall financial and socioeconomic development of any modern country. The economic
development of our country mainly depend upon the efficiency of the banking results is
so far as, whether the bankers have been able to read the economic situation properly and
are successful in selecting the promising industrial sectors seeking import and export
assistance to grow. With the rapid changes of time mans are readily depend on banking
services in case of handling cash, transferring cash, and also financing in various
industrial and business projects. So it is very much needed to develop the general banking
practices in order to provide better day-to-day banking services to the valued customers.
Because a service oriented industry a bank should believe that customers is all and the
king. The government of our country and the central bank i.e., the Bangladesh Bank has
decided to extend considerable help in every respect of general banking to concerned
people. Like other nationalized and non-nationalized commercial banks the Mutual Trust
Bank limited serves the nation by providing various modern banking services and
products. So as an Internee I thought of having special knowledge on this field of
increased importance.

1.2 Objectives of the Study

The objectives of the study is to make us known the practical situation of commercial
banks of Bangladesh in overall activities and prepare me to face the complex situation of
banking in this country .The primary objective of this report is to commonly with the
requirement of MTBL However the objectives of this study are something broader.
Objectives of the study are summarized in the following manner.

General objectives
The general objective is to prepare and submit a report on General Banking of Mutual
Trust Bank Ltd.

Specific objectives
To apply theoretical knowledge in the practical field.
To present an overview of Mutual Trust Bank Ltd.
To develop our skill on the banking sector.
To earn valuable knowledge about the general banking system.
To know the customer service of banking sector.
To observed the practice of modern technology in banking sector.
Practical knowledge about transaction.
To assess the strength and weakness.
To identify possible areas of improvement.

1.3 Rationale of the Study

As I am the student of business administration I have been authorized by our guide
teacher to prepare a report on internship on the activities of the general banking of Mutual
Trust Bank ltd. The internship program of BBA is a partial requirement to take test of real
life challenge conducted by the intern. This program is three month duration. During this
period I have worked closely with the employee of Dumni Branch. This report presents
the outcomes of the study during the internship- Mutual Trust Bank Limited.

1.4 Scope & Limitations

Every matter has got some limitation. So this is also not an exception. The limitations of
this internship report are been sated below:
Due to time and cost restriction, the study is concentrated in selected areas. To
continue study in such a vast are requires a big deal of time. As an internee I had
only three month which is not enough.
As a financial organization a bank has some restriction to serve all the real data of
the bank to the general people as a result the study is mostly depends on official
files and annual reports.
Available data also could not be verified. In most cases I simply did not have any
option but to furnish with data without verification.
MTBL as a commercial bank they are very busy and they could not able to give me
enough time for discussion about various topics

1.5 Methodology
At the time of my internship period, I tried to use both primary and secondary data that I
have gathered from different sources. For preparing this report primarily I got some data
from face to face conversation of different employees of MTBL Dumni branch and some
from different reports and features of the bank. Sometime I have undergone group
discussion, asked some questionnaires to the responsible officer of that work and
interviewed with some of them. I observed different parties and their transaction from a
very close eye .all of this observation and data are included in this report.

1.5.1 Selection of the topic

4

The topic selected for the study was chosen by me and approved by Sabirul Karim
Chowdhury, Assistant Professor, Department of Business Administration, Shanto-Mariam
University of Creative Technology.

1.5.2 Sources of data

Sources of data are given below
Primary source:
Primary data are collected through two ways. These are:
a) Some primary data are collected by taking interview and by discussion with the
executives and officer of MTBL.
b) Here primary data are collected through spending three month in the MTBL during the
working hour. Here I observed the total banking process of MTBL.

Secondary source:
Secondary data are collected from the following sources:
a) Annual reports of MTBL
b) Published documents
c) Newspaper, journal, articles etc.
d) Official files
e) Data available with the website of MTBL.
f) Different publication of Bangladesh bank and Bangladesh economic reviews.

1.5.3 Method of data Collection

5

Consultation with bank officials

Observing the activities of different departments of MTBL
Discussion with the supervisor
Face to face conversation with the clients

Chapter Two
Literature Review

2.1 Profile of MTBL

Registered Name of the Company: Mutual Trust Bank Limited.
Type: Limited.
Founded: On September 29, 1999.
Started its banking operation on October 24, 1999
Chairman: Mr. M.A. Rouf JP
Head office: MTB Centre 26 Gulshan Avenue, Gulshan-1, Dhaka-1212.
Key People: Mr. Anis A. Khan, (Managing Director, & CEO).
Nature of Business: Products & Service
Products: SME banking products (Small business loan, MTB Krishi, MTB Mousumi,
MTB Digoon, MTB Bhaggobati, MTB Revolving Loan, MTB Green Energy Loan,
Microfinance Scheme). MTB Consumer Loan (MTB Life Line, Home Loan Scheme,
Home Repair Loan, Home loan, Auto Loan, Doctors Loan).
Service: Corporate Banking, Institutional Banking, Off-Shore Banking, Investment
Banking, Mercent Banking, MTM Deposit Scheme, E-Banking, etc.)
No of Branch: 104
Company Registration Number: c38707 (665)/99 on September 29, 1999
Bangladesh Bank Permission Number: BRPD (P) 744(78)/99-3081 on October 5, 1999
SWIFT CODE: MTBL BD DH
Corporate Website: www.mutualtrustbank.com.
7

E-mail: info@ mutualtrustbank.com

2.2 Historical Background of MTBL

The Company was incorporated as a Public Limited Company in 1999, under the
Companies Act 1994, with an Authorized Share Capital of BDT 1,000,000,000 divided
into 10,000,000 ordinary shares of BDT 100 each. At present, the Authorized Share
Capital of the company is BDT 10,000,000,000 divided into 1,000,000,000 ordinary
shares of BDT 10 each.
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:

Wholesale Banking
Retail Banking
International Trade Financing
NRB Banking
Privilege Banking
Card Services Treasury Operation

2.3 Dumni Branch of Mutual Trust Bank Ltd.

Dumni branch has started its operation in Dumni at 27 th August 2014. So its a Two year
aged new branch of Mutual Trust Bank. Currently its deposit amount is around 42 cores
and the advance and loan amount is 22 Cores. There are only Eight officers in the branch
with manager. There are three section of the bank those are general banking section, credit
section and cash section.

Mission & Vision

2.4 Mission of MTBL
We aspire to be the most admired financial institution in the country, recognized as a
dynamic, innovative and client focused company, which offers an array of products and
services in the search for excellence and to create an impressive economic value

2.5 Vision of MTBL

Mutual Trust Bank's vision is based on a philosophy known as MTB3V. We envision
MTB to be:
One of the Best Performing Banks in Bangladesh
The Bank of Choice
A Truly World-class Bank

2.6 Slogan
You can bank on us

2.7 Hierarchy of Mutual Trust Bank Limited

Chairman
Vice Chairman
Managing Director

Deputy Managing Director

Sr. Executive Vice President
Executive Vice President
Sr. Vice President
Vice President
Sr. Asset. Sr.
Vice
Asstt.
President
Vice
President
Principal Officer

Executive Officer

Management Trainee Officer

(MTO)
Officer

Junior Officer

Assistant Officer

10

Chapter Three
General Banking

3.1General Banking

11

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.

3.2 Scope of General Banking

1. Customer Service.
2. Account Opening.
3. Remittance.
4. Payment Order.
5. Demand Draft.
6. T.T.
7. Deposit Department.
8. Accounts Department.
9. Clearing Transfer.
10. Cash.
11. Loan and Advance.

3.3 Types of Deposit account

12

There are several types of deposit accounts. Each account has different characteristics
and every account has some specific purpose to serve. MTBL offers the following key
Personal Banking Services. According to their uniqueness they are described as
follows:
Regular Savings Account
MTB Senior
MTB Inspire
MTB Ruby
MTB Graduate
MTB Junior
MTB Shanchay
MTB Care
Current Account
Fixed Deposit
MTB Double Saver
Monthly Benefit Plan
Brick by Birck
MTB Children Education Deposit Scheme
MTB Education Plan
MTB Millionaire Plan

13

 MTB Kotipati
MTB Gift Cheque

3.3.1 Regular Savings Account

Saving for the arrival of your baby, a new car, a well-deserved holiday, or simply for
emergencies? Let our Savings Account meet all your saving needs through monthly
and flexible savings. An easy-to-operate savings account that allows you to issue
cheques, draw Demand Drafts and withdraw cash. Check up on your balances from the
comfort of your home or office through Internet Banking and SMS banking.
Features and Benefits:
Wide network of branches
Access to largest ATM fleet of the country
Bank conveniently with facilities like Internet Banking and SMS Banking
Cheque-book facility
Opportunity to apply for safe deposit locker facility
Collect foreign remittance in both T.C. & Taka draft.
Transfer of fund from one branch to another by Demand Draft /Telegraphic
14

Transfer
Online banking service

3.3.2 MTB Senior

MTB Senior has been designed keeping in mind the fact that a senior citizens banking
requirements are wholly different and deserve special attention. We like to empower
our senior citizens, so that they can carry out their day-to-day banking transactions
independently, and with dignity and confidence. Now the true pleasure of seniority in
your grip!
Eligibility:
Must be a citizen of Bangladesh
Age 60 and above

Features:
Lifetime free Debit Card
Free internet banking
Attractive discount on locker charge
Free cheque books*
Interest calculated on daily basis and paid monthly
Unlimited transactions
Online banking facility across MTB branches and access to largest ATM
15

network

3.3.3 MTB Inspire

MTB Inspire provides a range of enhanced services, while letting you enjoy unique
benefits of getting return on your deposit monthly instead of traditional half yearly.
With extra access and convenience of banking, enjoy the full convenience of a savings
account and access your savings anytime.
Eligibility:
Must be a citizen of Bangladesh
Age 18
Features:
Interest calculated on daily basis and paid monthly
Free Debit Card*
Free internet banking
Online banking facility across MTB branches and access to largest ATM
network

3.3.4 MTB Ruby

MTB Ruby enables todays independent women to enjoy hassle-free banking services.
Besides the core MTB banking advantage, MTB Ruby, an exclusive savings account
for women, is packed with special benefits for our women customers. Enjoy your
16

present and plan for the future, with this rewarding savings account.
Features and Benefits:
Interest will add on daily basis and it will be credited monthly
Higher interest rate
Minimum account opening balance is Tk 10,000. Minimum daily qualifying
balance to earn interest is Tk 10,000
No debit card fee for 1st year
Free Internet Banking

3.3.5 MTB Graduate

MTB Graduate, a contemporary savings account, is packed with everything you need
to meet all your banking needs, offering monthly income while helping you save for
future financial emergencies.
Eligibility:
MTB Graduate is a savings account for college and university students who are 18
years and above.
Features:
Attractive interest rate
Interest adds on daily and pays out monthly
Free debit card
Free internet banking
17

3.3.6 MTB Junior

MTB has the solution to help you do that while showing the virtue of saving, in your
child. MTB Junior is a savings account for minors that offer the opportunity to save for
today and the future.
Eligibility:
MTB Junior is a savings account for school and college students below 18 years.
Features:
Attractive interest rate
Free debit card
Free internet banking
No account maintenance fee
Minimum account opening balance is Tk 100.

3.3.7 MTB Shanchay

MTB Shanchay, a savings product for the Base of the Pyramid. Low income group
who dont manage their finance due to the lack of available banking facilities; opening
the product would help minimize their financial risks.
Features and Benefits:
Minimum account opening balance is Tk 50

18

 Type of Account: Savings, non-checking.

No account maintenance fee.
Interest will be calculated on monthly average balance and credited to account
on half yearly basis, similar to regular savings account*
Cash withdrawal option: Only through withdrawal slip and Debit Card.

Eligibility:
Any Bangladeshi with photo ID document as applicable for savings account.

Age 18 years and above.

3.3.8 MTB Care

MTB Care, a unique proposition of MTB, is a savings product for children with special
needs. Through this product, special needs children will get assistance from branches in
opening and maintaining the account at a lower cost compared to other savings
products. This is also MTBs commitment towards helping special children to have
access to banking services.
Eligibility:
Any Bangladeshi with photo ID document as applicable for savings account. The
account will always require a guardian who will operate the account along with the
account holder, when he/she has no mental capacity to sign.
Features:
Interest calculated on monthly average balance.

19

 Interest is credited to account on monthly basis.

No account maintenance fee.

First 3 cheque books free (10 pages per book)

3.3.9 Current Account

A Current account is ideal for carrying out day-to-day business transactions. With the
MTB Regular Current Account, you can access your account anytime, anywhere, pay
using payable at par cheques or deposit cheque at any MTB bank branch.
Features and Benefits:
Wide network of branches
Access to largest ATM fleet of the country
Bank conveniently with facilities like Internet Banking and SMS Banking
Cheque-book facility
Opportunity to apply for safe deposit locker facility
Collect foreign remittance in both T.C. & Taka draft.
Transfer of fund from one branch to another by Demand Draft /Telegraphic

20

Transfer
Online banking service

3.3.10 Fixed Deposit

If you believe in long-term investments and wish to earn higher interests on your
savings, NOW is the time to invest your money in our Fixed Deposit.
Automatic renewals: Upon maturity, your deposit will be automatically
renewed for the same tenor at the prevailing interest rate unless you instruct
otherwise.
Overdraft facility: You can use your Fixed Deposit as collateral to apply for an
overdraft facility at a competitive rate.

3.3.11 MTB Double Saver

MTB Double Saver is a fixed deposit scheme where the deposit doubles in 7.5 (seven
years six months) years
Eligibility:
Any individual/individuals in single or joint name and any government/ Nongovernment organization can open the scheme.
Features and Benefits:
Minimum deposit of this scheme is BDT 50,000.00 and there is no limit for
21

maximum amount to open an account

The depositor can avail loan up to 90% of the payable amount. Minimum loan
amount will not be less than BDT 25,000.00.
The depositor can avail credit card limit up to 80% of the payable amount.
Minimum credit card limit will not be less than BDT 10,000.00.

3.3.12 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.
Features and Benefits:
A person/persons can open this plan singly or jointly. More than one account
can be opened by the same depositor at the same branch.
The plan is for 3 (three) years and 5 (five) years and on maturity the account
will be renewed automatically.
The minimum deposited amount is BDT 100,000.00 and multiples of BDT
100,000.00 of any amount.
A Savings/Current account is required to open an MBP/MBPs. The monthly
benefit will be credited to this account.

3.3.13 Brick by Brick

Drops of water make an ocean. Your habit of regular savings will provide you comfort
in the future. MTB Brick By Brick is a monthly deposit scheme in which any one can
deposit on a monthly basis and at the end of the period you will get a handsome
amount.

22

Features and Benefits:

Person/Persons can open this account singly or jointly. More than one account
can be opened by the same depositor at the same branch.
A customer can open this account for 3/5/8/10 years and the monthly
installment of this Plan is BDT 250.00, 500.00, 1,000.00, 2,000.00, 5,000.00,
i.e. it can be any amount multiple of BDT 500.00.
The customer may avail loan up to 90% and credit card limit up to 80% of the
payable amount.
If the depositor wants to close the account in between two maturity periods, e.g.
3 and 5 years, 5 and 8 years, 8 and 10 years, s/he will be paid the full amount
admissible for the immediate past maturity period and simple interest on the
deposited amount at the prevailing savings rate for the rest period.

3.3.14 MTB Children Education Deposit Scheme

It is a savings scheme for the education of children. It will ensure the future
expenditure of their education.
A guardian (father or mother) will operate the account on behalf of his/her
child.
The duration of the product will be 4(four) years.
The account may be opened by depositing a minimum of Tk. 500/-. Any
amount may be deposited at any time but each deposit should be minimum Tk.
250/ Interest @ 8.00% half yearly compound to be paid on daily product basis.
Tax at source, excise duty etc. will be deducted from the payable amount as per
government rules.

23

3.3.15 MTB Education Plan

Features and Benefits
No initial deposit required
Monthly installments are Tk. 1000 or multiples of Tk. 1000 but not exceeding
Tk 20,000
The savings periods are 4, 7, 9 and 12 years
No hassle of depositing money from long queue, rather option of depositing
installment through standing instruction
Overdraft facility against deposited amount
If the depositor wants to close the account in between two maturity periods, e.g.
4 and 7 years or 7 and 9 years, s/he will be paid the full amount admissible for
the immediate past maturity period and simpleinterest on the deposited amount
at the prevailing savings rate for the rest period.
Credit facility
The customer can avail loan up to 90% of the deposited amount. Minimum loan
amount will not be less than Tk. 25,000/-

3.3.16 MTB Millionaire Plan

MTB Millionaire Plan is a monthly deposit scheme which will make a client
millionaire after a certain period.
Features and Benefits:
Any person/persons, government and non-government organization can open

24

this account singly or jointly.

The tenure of this scheme is 6/8/10/12/15/20 years. More than one account can
be opened by the same depositor in the same branch.
The customer may avail loan up to 90% and credit card limit up to 80% of the
payable amount

3.3.17 MTB Kotipati

MTB Kotipati is a recurring and monthly deposit product which will make a client
Kotipati after a certain period. Under this scheme any one can deposit a certain
amount on a monthly basis and at the end of the period (s)he will get taka one crore
with a better rate of interest. Any person/persons can open this account singly or
jointly. Features & Benefits:
Features & Benefits
Attractive return on deposit.
Any Bangladeshi citizen can operate the account singly or jointly.
The customer can avail loan up to 90% of the deposited amount.
More than one account can be opened by the same depositor.
Option of depositing installment through standing instruction or at any MTB
branch within 20th of every month.

3.3.18 MTB Gift Cheque

MTB Gift cheque users have the unique opportunity to choose their gift, whenever they
wish. Purchasers save time and receivers have the option to buy something they
require.
25

MTB GIFT CHEQUE can be exchanged for money anytime, at any MTB branch in
Bangladesh.
Easy to purchase:
Purchasers do not have to be an account-holder of MTB to purchase MTB Gift Cheque.
Additional Benefits:
Gift Cheque holders can encash the cheque from any MTB Branch in
Bangladesh
No document is required for purchase of gift cheque
No service charge is applicable
Attractive rate of interest
Other conditions may apply

3.4 Visa Cards

MTB Visa Electron Card will be offered to each and every Savings, Current & STD
Account holders of the Bank. This electron Card can be used at any Dutch-Bangla
Banks ATM all over the country.
Facilities
No card fee for first year
No transaction fees on POS & DBBL ATMs.
No time bindings for cash withdrawal
No need to come to Branch for cash withdrawals.
5000 outlets for shopping in Bangladesh

26

3.5 Types of VISA Cards

Visa Remittance Card
It acts like a debit card but it is different than debit cards. . The remitted amount of
money will be directly credited to the card account. It will fulfill the purpose of quick
money transfer from non-resident Bangladeshi (who are working abroad) to their
relatives in Bangladesh.
Facilities
Beneficiary can draw remitted amount sent to him by using this card. Money transfer
within a short time. Easy to use & Carry. No need to rush to the bank branches.
Useable at all ATMs bearing Visa Logo. 24 Hours day night cash drawing facility.
More than 400 ATM accessibility countrywide. Accepted everywhere displaying VISA
sign. No annual fee for card uses. Discount at selective shops & restaurant.
International Travel Card
An internationally accepted VISA prepaid card for the travelers.
Facilities
Will reduce dollar endorsement hassle and will provide best support while in abroad.
Usability on 550,000 Visa ATMs worldwide. About 18 million outlets worldwide.

Local Gold Credit Card

Best for upper class income group.
Facilities
Easy to use & Carry. Buy now pay later. 50% Cash Advance facility. Secured &
Convenient. Handy & Prestigious. Up to 45 Days Interest free period. 5000 outlets for
shopping in Bangladesh.

27

MTB Hajj Card

This card will allow the pilgrims to withdraw cash from any of the VISA acquired
ATM and purchase or pay against service by using VISA POS throughout Saudi
Arabia. The cardholder will be able to withdraw SR 100 in cash per transaction or up to
the face value of the card.

MTB Hajj cards are especially designed to ease the payment for food and lodging of
the Bangladeshi pilgrims at Saudi Arabia to perform Umrah or Hajj. However these
cards can also be used by any travelers at Saudi Arabia considering the security aspect
in handling cash required for their travel while in the Kingdom.
There are no fees on ATM withdrawals made with Saudi Umrah and Hajj Cards, and
100% cash value can be withdrawn in cash.
The cards adhere 100% to Islamic Shari a regulations.

3.6 Cash section

3.6.1 Receipt and Payment of cash
Among the services provided by the bank, cash receipt and payment is the most vital
and physical function. Generally customer comes to bank to withdraw the money from
their account and deposit his savings in their accounts.

3.6.2 Cash Deposit

Money deposited in cash by the constituents at the cash counter of the bank excluding
that of government transaction is known as Bank Receipt (Cash). Different types of
forms are used for cash deposits for different types of accounts. Particulars of some
forms are furnished below:
Current or Savings account pay in slip
Application for fixed deposit receipt

28

 Credit voucher
Draft or mail transfer application form
T.T. Pay order application form Call deposit application form
Demand loan pays in slip.

3.6.3 Cash Payments

Banks payment includes all kinds of payments excluding those of treasury section.
Extreme precautions must be taken at all levels through, which instruments like
cheque, drafts, etc. are disposed of. All the instruments received at the general banking
counter will be preliminary checked by the dealing officer who will enter the
instruments in the respective ledger. In case of cheque the following particulars will be
scrutinized.
Date (Whether postdated or anti dated)
Amount in word and figure
Crossed or Open

29

 Bearer or Order
Style of signature as available in the ledger
Prohibitory order or stop payment of checks.
The Cash officer will follow the following procedures at the time of payments of
checks/other instruments over the cash counter.
The client will submit the instruments in the computer department first. The
computer officer and cheque passing authorized officer will verify the
instrument and posted the instruments. Then it will be send to the cash counter.
After getting the instrument the cash officer will verify the instruments and if
necessary the cash officer can tell the clients to sign in the backside of the
instruments.
Cash officer will record the denomination of notes and coins on the backside of
the instruments.
The officer will enter the check in the cash payments register where the
denomination of notes and coins will also be recorded.
The cash officer will give the amount to the clients at the cash counter and told
the clients to count it immediately and if needed any quarry.
All checks, drafts, debit vouchers etc. must be branded with Cash Paid stamp
with the current date.
After payment the cash department for the purpose of clean cash book will send
the vouchers.

3.7 Account Section:

This is the most confidential department of a bank. Recording all kinds of transactions of
the branch, confirming their accuracy and preparing statements are the main job of this
30

department. Now a day under computerized banking system, the jobs of accounts
department become very easy. Now the computer directly prepares the clean cash
statement on party ledger vouchers. The function of the accounts department can be
divided into two parts:
a) Daily function
b) Periodical functions

3.7.1 Daily functions:

The routine daily tasks of the accounts departments are as follows:
Record the daily transactions in the cash book.
Record the daily transactions in general and subsidiary ledger.
Prepare the daily position of the branch comprising of deposit and cash.
Prepare the daily statement of affairs showing all the assets and liability of the
branch as per ledger and subsidiary ledger separately.
Pay all expenditure on behalf of the branch.
Make salary statement and pay salary.
Checking whether all the vouchers are correctly passed to ensure the
conformity with the `Activity Report'; if otherwise making it correct by calling
the respective official to rectify the voucher.
Records inter branch fund transfer and providing accounting treatment in this
regard.

31

3.7.2 Periodical Tasks:

The routine periodical tasked performed by the department are as follows:
Prepare the monthly salary statements for the employees.
Publish the basic data of the branch.
Prepare the weekly position for the branch, which is sent to the Head Office to
maintain Cash Reserve Requirement.
Prepare the monthly position for the branch, which is sent to the Head Office to
maintain liquidity requirement.
Prepare the weekly position for the branch comprising of the breakup of sector wise
deposit, credit etc.
Prepare the weekly position for the branch comprising of the denomination wise
statement of cash in tills.
Preparing the budget for the branch by fixing the target regarding profit and
deposit so as to take necessary steps to generate and mobilize depose.

32

3.7.3 System of Accounting

The following ledgers are maintained and statements are prepared in the Accounts
Departmentsi.

Transfer Book

ii.

Supplementary

iii.

Clean Cash Book

iv.

General Ledger

v.

Subsidiary Ledger
a. Income Ledger
b. Expenditure Ledger
c. Sundry Asset Ledger
d. Sundry Deposit Ledger
e. Suspense A/C. Ledger

vi.

Voucher Register

vii.

Balance Book

viii.

Daily Statement of Affairs

ix.

Daily Position Statement

x.

Weekly Position

33

xi.

Provisional Income & Expenditure Statement

xii.

Accounts Monthly Statement

xiii.

Salary Statement

xiv.

Half-yearly Statement

xv.

Annual Closing Balance

xvi.

Statement of Reconciliation

3.8 Demand Draft (DD)

Demand draft is a written order of one branch upon another branch of the same bank, to pay a
certain some of money to or to the order of a specified person. Drafts are not issued payable to
bearer. In practice drafts are not to be drawn between branches within the same city. Drafts
drawn by one branch of bank on another payable to order where any draft that is an order to
pay money drawn by one on a bank upon another office to the same bank for a sum of money
payable to order on demand, purports to be endorsed by or on behalf of the payee, the bank is
discharged by payment in due course. From the above provisions as to Crossing, Endorsement,
Collection and Payment in due course are the same as for checks:

3.6.1 Telegraphic Transfer (TT)

TT is affected by tile bank through tested message attested by secret check signal, on
34

receipt of which tile paying officer pay the amount to the payee in cash through a
telegraphic payment order or credit his account, as the case may be. Both parties must
have account in Mutual Trust Bank Limited, as money is transferred.
3.6.2 Payment Order (PO)
The PO is used for making a remittance to the local creditors. The procedures for
selling a PO are as follows:
Deposit money by the customer along with application form.
Give necessary entry in the Bills Payable register where Payee name, address,
date, PO no: amount is mentioned.
Prepared the instrument.
After scrutinized and approved the instrument by authority, it is delivered to
customer.
Signature of customer is taken on the counterpart and register customers
signature part.

Commission Charge

Amount in Taka

Rate of Commission in Taka

Up to 10,000/-

15/= + 3.00

10,001/= to 1,00,000

25/= + 4.00

1,00,001/= to 5,00,000/-

40/= + 6.00
35

5,00,001/= To Above

50/= + 8.00

3.7 Clearing Section:

Clearing is one of the most magical parts of modern banking. Now days, the banking
activities is boundless. Most of the banks are linked with other banks due to interbank
transactions. Clearing is the only process by which these transactions are settled.
Clearing House is a centralized and computerized system for settling indebtedness
between its member banks. Clearing House enables the member banks to offset claims
against one another for checks and orders paid into banks other than those upon which
they were drawn of the clearing house, Bangladesh Bank, Dhaka.
Nature of clearing house

1st Clearing House

Return Clearing House

Outward Clearing

Inward Clearing

3.7.1 Types of Clearing:

36

There are two types clearing

Outward Clearing:
When a particular branch receives instructions drawn on the bank within the clearing
zone and sends those instructions for collection through the clearing arrangement is
considered in outward clearing for that particular branch. This branch is known as
collecting branch.
Inward Clearing:
When a particular branch receives instructions, which are on themselves and sent by
other member banks for collection are treated as inward clearing of that branch.

37

Chapter Four
Findings & Analysis

4.1 SWOT Analysis

SWOT analysis means analyzing the Strengths, Weakness, Opportunities and Threats
of the organization to know the present condition. This is very common analysis to
determine the company s capabilities of doing effective business. This help to know the
possible advantages and disadvantages of the firm that it has compare to others. The
SWOT analyses of Mutual Trust Bank Limited are briefly given in the below:
S- Strengths

38

 Experienced top management

Good operating efficiency
Satisfactory business growth
Government ownership
Satisfactory Non-Performing-Loan coverage
Satisfactory risk management structure
Multi product financial institution
Market leader in Small & Medium scale industry banking among me local
banks
Conservative approaches to reduce the risk of classification.
Clear specification of documentation process to reduce the risk of classification.
Strong procedure in selection of new borrower.
W-Weakness
Dependent on fixed deposits
Moderate risk management system
Limited delegation of power
Insignificant market share
Concentrated ownership
Low non-funded business

39

O-Opportunities
Creation of brand image
SME and Agro based business
Real time online banking
Government and International agencies positive attitude toward low
classification rate.
T-Threats
Increased competition in the market.
Market pressure for increasing the SLR.
Supply gap of foreign currency.

From the above analysis it was found that Mutual Trust Bank Ltd. has an experienced
top management and efficient professionals who can easily solve the problems of
classified loans or any others, such as delegating proper power or low non-funded
business. So the weakness can be eliminated easily through its strength
The credit policy of Mutual Trust Bank Ltd. has been perfectly designed depending on
the government funds and assistance. But as it is sure that, government will sell its
share in near future Mutual Trust Bank Ltd. has to revise its credit policy by
considering alternative source of fund. International funds can be alternatives for
government source if Mutual Trust Bank Ltd. can continuously reduce its classification
rate.

40

4.2 Findings
While working at MTBL Dumni branch, I have attained a newer kind of experience.
After collecting and analysis data I have got some problem of the MTBL. These
problems completely from my personal viewpoint, which is given below:
Lack of update products is a drawback of the general banking area of the Mutual
Trust Bank. New products such as student loan, medical loan, marriage loan are not
available in MTBL.
From the clients view introducer is one of the problems to open an account. It is
general problem to all commercial bank.
They face troubles with those clients who have not any knowledge in banking
transactions and banking rules.
Important factors such as- good reputation in the market, online banking, personal
& corporate relationship etc.
As the deposit is heart of running the banking activities Mutual Trust Bank Deposit
growth not good. Because Mutual Trust Bank deposit rate is low other than
commercial bank such as Dhaka Bank, Prime bank Mercantile Bank, HSBC Bank,
Bank Asia etc.
Cash limit is low; because of this sometimes clients cannot get service properly.
The branch manager, officer and executive who have achieved target in all respect
41

may be rewarded.
Employees are not too much customers oriented and responsive.
Under this department, practice strictly supports theories. There is not too much
discrepancy between them. All the functions of Account Department provided by
MTBL Dilkusha Branch are based on accounting theories and procedures.

Chapter Five
Conclusions &
42

Recommendations

5.1Recommendations
Mutual Trust Bank Ltd. is one of the most flourishing Banks of Bangladesh with wide
growth opportunities in the industry. The survey on the customers of Mutual Trust
Bank Ltd. was conducted with an aim of improving the overall customer satisfaction at
Mutual Trust Bank Ltd. The research gave valuable insights as to where improvements
were necessary to improve the quality of service.
Based on the above results, it can be said that Mutual Trust Bank should reconsider its
service strategies in Bangladesh and design products and services that better satisfy
customer needs and requirements. Bank should be more tactful in dealing with the
customers and launch new products that fully meet customer expectations.
The following point can be recommended on the findings of survey:
According to the Mutual Trust Bank Ltd. position, I will suggest to take the following

43

aspects:
New credit culture needs to be developed in place of default culture. Efforts to
be taken as soon as possible to safeguard the interest of banking sector.
Real value of business can come from making regular visits to the customer's
place of business rather than holding all meetings in the Bank.
For improving the recovery position and reducing huge overdue loans, first
action needed to attract political support and urge upon the govt. and political
parties to take necessary steps for repayment of defaulted loans within a limit.
Against big willful defaulters legal action should be taken promptly. This step
should be taken as soon as one installment is defaulted without waiting for
default of total loan.
Increase branch wise promotional activities.
Expand the facilities of on line banking all over the branches.
Try to faster the service.
Increase the facilities for the employees both financial and environmental.
Mutual Trust Bank Ltd. should recruit more employees on the branch.
Cash limit should be increased
Number of ATM booth should be increased.

5.2 Conclusion
I had the opportunity to work for this banking giant during my three months internship
program. I was placed at the customer service department of Mutual Trust Bank Ltd.
Dumni Branch. During this time I got a vast opportunity to observe the overall service
process of Mutual Trust Bank Ltd. personal banking division. I also got the scope to
44

interact with customers directly and reveal their expectations and perceptions about the
banks services. During my interaction with customers I felt that somewhere there are
gaps between customer expectations and banks services.
So, finally I will say that this internship at Mutual Trust Bank Ltd. has increased my
practical knowledge of Business Administration and made my BBA education more
Complete and applied. I give Mutual Trust Bank Ltd. all my wished and regards so that
it could become the leader of financial services in Bangladesh in the near Future

5.3 Reference
1. www.mutualtrustbank.com
2. www.mutualtrustbank.com/about us
3. www.mutualtrustbank.com/profile of MTB/Branch
45

4.
5.
6.
7.

www.bangladeshbank.org/crg/mutual trust bank

Annual Reports of MTBL Bank Limited (2010-2014)
Data provided by the branch
Intranet of Mutual Trust Bank Limited

5.4 APPENDICES
MTBL = Mutual Trust Bank Ltd.
GBS = General Banking System

46

A/C = Account
SOD = Secured Over Draft
PAD = Payment against Documents
LTR = Letter of Trust Receipts
CDS = Consumer Durable Scheme
NCB = Nationalized Commercial Bank
FCB = Foreign Commercial Bank
PCB = Private Commercial Bank
CC = Cash Credit
OD = Over Draft
CRG = Credit Risk Grading
TT = Telegraphic Transfer
PO = Payment Order
DD = Demand Draft

47