"Financial Performance Analysis of

The Internship Report
On
Financial Performance Analysis of
Mutual Trust Bank Limited
Prepared By
MD. Rasel Mahmud
ID. NO.: 2011110000138
Batch: 28th
Program: BBA
BACHELOR OF BUSINESS ADMINISTRATION

MAJOR IN MARKETING
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School of Business Studies
SOUTHEAST UNIVERSITY, DHAKA, BANGLADESH
Date of submission: 3rd September, 2016
The Internship Report

On
Internship report submitted to the
School of Business Studies, Southeast University, Dhaka
In partial fulfillment of the requirements for the award of the degree of
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Bachelor of Business Administration
Major in Marketing
Prepared By
MD. Rasel Mahmud
ID. NO.: 2011110000138
Program: BBA
Batch: 28th
Under the supervision
Of
Mohammad Azhar Hossain
Lecturer
Southeast University
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Dhaka, Bangladesh
The Dissertation entitled

Submitted by
MD. Rasel Mahmud
ID. NO.: 2011110000138, a student of BBA Program has been accepted as

satisfactory in partial fulfillment of the requirement for the degree of Bachelor
of Business Administration major in Marketing on 3 rd September, 2016.
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BOARD OF EXAMINERS
(The board constitutes by four multi-disciplinary faculty members headed by
one convener at the level of minimum assistant professor. The concerned
supervisor will be included as the mandatory members.)
1. Name:_________________________________________ Convener
Designation:____________________________________
2. Mohammad Azhar Hossain

Supervisor
Lecturer
3. Name:_________________________________________ Member
Designation:____________________________________
4. Name:_________________________________________ Member
Designation:____________________________________
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Letter of Transmittal
Date: 3rd September, 2016
To
Lecturer
Subject: Submission of dissertation report on Financial Performance

Analysis of
Dear Sir,
With due respect, I would like to state that, I am MD. Rasel Mahmud student of
BBA Program, ID: 2011110000138, of Southeast University have completed
the dissertation report paper based on the topic, Financial Performance
Analysis of Mutual Trust Bank Limitedas the partial requirement of the
BBA program.
The preparation of this formal study paper is of a great expectation in our BBA program
and I am pleased enough to submit it applying all that I think should have to be included
and which should not be included. It was a great experience for me. The report has put on
impression in my mind that, all that matters is the efficient management of ones time,
skill, experience, knowledge, and finally reality. If we were not asked to submit such paper
we might remain isolated from practical field. During the preparation of the report, we had
to face some difficulties that has been erased out with your propound help and assistance.
Without your cooperation and guideline, this report would have been an incomplete one
insufficient one.
Finally, thank you for your supportive thought and kind consideration for formulating an
idea and developing the structure of the paper.
Thanking you,
Name: MD. Rasel Mahmud

ID no: 2011110000138
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Major in Marketing, BBA Program
Letter of Endorsement
The dissertation Report entitled Financial Performance Analysis of Mutual Trust

Bank Limited has been submitted to the office of the Dean in partial fulfillment of the
requirements for the degree of Business Administration, Major in Marketing Management,
School of Business Studies, Southeast University on August 31, 2016 by MD. Rasel
Mahmud, ID No: 2011110000138. The report has been accepted and may be presented to
the dissertation Defense Committee for evaluation.
(Any opinions, suggestions made in this report are entirely that of the author of the report.
The University does not condone nor reject any of these opinions or suggestions)

Dissertation Supervisor
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CANDIDATES DECLARATION
I here by declared that this Dissertation or any part of it has not been
submitted elsewhere for the award of any degree or diploma.
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Date: September 3, 2016
-----------------------------
Student name
MD. Rasel Mahmud
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Dedications:
This work is dedicated

To
My parents
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Acknowledgement
I would like to express my sincere gratitude and appreciation to my supervisor

Mohammad Azhar Hossain, Lecturer, School of Business Studies, Southeast University,
Dhaka, Bangladesh. His magnanimous help, excellent guidance, constant encouragement
and incessant assistance were available at all stages of my report. I am extremely grateful
to him for his earnest feeling and help in matters concerning my dissertation.
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I express my deep regards to Dr. A.F.M. Mafizul Islam, Professor, School of
Business Studies, Southeast University for providing me timely help,
necessary facilities and helpful advice during my study in the school.
I also acknowledge Sushan Chowdhury (Junior Assistant Vice President) JAVP,

who cooperate me to complete this report. It is my pleasure to acknowledge
the contribution of all concerned regarding the preparation of this internship
report. I have achieved a wonderful experience.
I am grateful to my parents who guided me through the entire studies and had
helped me morally and spiritually.
MD. Rasel Mahmud
Date: August 29, 2016
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Executive Summary
IhavepreparedthisinternshipreportthroughtheinformationofFinancialAdministrationDivision
(FAD)ofMutual Trust Bank Limited.
Mutual Trust Bank Limitedisoneoftheprivatecommercialbanksinbankingindustry.MTB

play a vital role in forecasting the economic and social condition of a country. Bangladesh
Commerce Bank Limited in Bangladesh now constitutes the core of the
countrys organized financial system.
Thereporthasorganizedinsixchapters.Firstchapterincludingintroductorypartofthereport,
thereImentionmainobjectiveofthereport.Themainobjectiveofthereportistoanalyzethe
financial performance of management and the bank as whole. In preparing this report I use
secondarydata.
ThesecondchapterconsistanoverviewofbankingsectorinBangladesh,whereIdiscusabout
thecentral banks mission, vision, and functions. List of all nationalized banks,
private banks, foreign banksandspecializedbanksaregiveninthischapter.
The thirdchapter consistanoverviewoforganization,whereIdiscussaboutsomeimportant

informationof Mutual Trust Bank Limited suchasitsmission,vision,objective,Boardof
Directors,Executivesandlastfiveyearsperformanceetc.
FourthChapter includestheoreticalpart.Therediscussaboutfinancialperformanceanalysis,
objectives,Ratio,advantageofratioanalysis,limitationofratioanalysisandgroupsofratio.
Fifthchapteroftheprojectpart;whereIusedsomefinancialparameterforanalyzethefinancial
performanceofMutual Trust Bank Limited.Theseparametersarecapital,liquidityratio,debt
ratio,profitabilityratioandlastoneismarketratio.
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Sixchapter deals withsomefindings,recommendations whichare drawbyanalysis of the
report.ThenIconcludedmyreportsayingsomerecommendationsandjustificationswhichmay
helpMutual Trust Bank Limitedtoimproveitscurrentposition.
Thestudyofthetrendofthesameitems,groupofitems,andcomputeditemsintwoormore
balancesheetofthesamebusinessenterpriseondifferentdates.
Thechangesinperiodicbalancesheetitemsreflecttheconductofabusiness.Thechangescanbe
observedbycomparisonofthebalancesheetatthebeginningandattheendoftheperiodand
thesechangescanhelpinforminganopinionabouttheprogressofanenterprise.
Table of Contents (Dissertation)
Page No.
Title page ii
Board of Examiners iii
Candidates declaration v
Dedication vi
Acknowledgement vii
Executive summary viii
List of figures x
List of tables x
Chapter One Introduction 1-6
1.1 Introduction of the report 2
1.2 Background of the report 3
1.3 Scope of the Report 3
1.4 Objectives of the Report 4
1.5 Methodology of the Report 4
1.6 Limitations of the Report 6
Chapter Two Overview of Banking Sector in Bangladesh 7-19
Chapter Three Overview of Mutual Trust Bank Ltd. 20-
3.1 An Overview of the Organization 21
3.2 Background and History of the Company 21
3.3 MTB at a Glance 22
3.4 Shareholders and Shareholding Structure of MTB 22
3.5 Vision and Mission of MTB 23
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3.6 Objectives of MTB 23
3.7 Core Values of MTB 23
3.8 Organogram of MTB 25
3.9 Management Structure (Dept.) 25
3.10 Products 27
3.11. Mutual Trust Bank (MTB) Products Services: 27
3.11.2 Deposit Products 27
3.12. Trade Finance 28
3.13. Treasury Services 29
Chapter Four Theoretical Aspect 30-

35
Chapter Five Performance Analysis 36-

53
Chapter six Findings Recommendation & Conclusion 54-

57
References 58
Chapter: One
Introduction
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1.1 INTRODUCTION OF THE REPORT
As a part of the Internship of BBA course requirement, I was assigned to do my

Internship in Mutual Trust Bank Limited. 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.
Mutual Trust Bank Limited (MTBL) is a Public Limited Company by shares in the
Bangladesh, with commendable operating performance. Directed by the mission to
provide with prompt and efficient services to clients, MTBL provides a wide range of
commercial banking services also. The bank has achieved success among its peer group
within a short span of time with its professional and dedicated team of management
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having long experience, commendable knowledge and expertise in convention with
modern banking. With all the resources, management of the bank firmly believes that
the bank would be able to encounter problems that may arise both at micro and
macroeconomic levels.
This report, Financial Performance Analysis of Mutual Trust Bank Limited, has
been prepared to fulfill the partial requirement of BBA program as a mean of Internship
report. While preparing this report, I had a great opportunity to have an in depth
knowledge of all the banking activities of Mutual Trust Bank Limited.
1.2 BACKGROUND OF THE REPORT
Financial performance is a measurement of how well an organization can use its assets
from its primary mode of business and generate revenues. Financial Performance also
show future growth of organization. So the importance for a sound system of financial
performance measurement for financial institution is significant, This study is prepared
as an integral part of the completion of BBA program from department of business
administration , Southeast University basically this study is conducted to see the
financial performance analysis of Mutual Trust Bank Limited Besides this, some other
operational ideas on Mutual Trust Bank have been drawn in this report so as to generate
an overall picture of the organization.
1.3 SCOPE OF THE REPORT

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As I was an intern, my scope was limited and restricted for some purpose. I had
maintained some official formality for the collection of data of my report. This study
will give a clear idea about the financial performance of Mutual Trust Bank Limited as
well as the different section of different products and services of Mutual Trust Bank
Limited. At last the financial position of the bank in the banking industry based on its
last couple of years performance.
1.4 OBJECTIVES OF THE REPORT

1.4.1. General Objective
The prime objective of the report is to analyze the Financial Performance of
1.4.2. Specific Objectives
The following aspects can be listed as the specific objectives for this practical orientation
in Mutual Trust Bank Limited:
o To evaluate the financial performance of Mutual Trust Bank Limited.

o To understand and analyze the financial strength Mutual Trust Bank
Limited.
o To overview of Banking Sector of Bangladesh
o To apply theoretical knowledge in the practical field.
o To recognize the findings and raise possible recommendations for
improving the performance of Mutual Trust Bank Limited.
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1.5 METHODOLOGY OF THE REPORT
1.5.1. Type of Research:
This report is a descriptive type of research which briefly reveals the overall activities
performed by MTBL. It has been mainly administered by collecting secondary data.
Annual reports of MTBL. were the major secondary data sources in this regard. Ratio
analysis and trend analysis have also been used as major tools for the financial
performance analysis. The study is performed based on the information extracted from
different sources collected by using a specific methodology. This report is analytical in
nature.
1.5.2. Sources of data:
To prepare this report all the necessary information collected from mainly secondary
sources of data.
1.5.2.1Secondary sources of data
Secondary sources of data are of two kinds:
Internal: Annual Reports of MTBL, Other published documents of

the banks, MTBL banks Website.
External: Books, Articles, Journals, Newspaper, Web browsing.
1.5.3 Instruments used for analysis:
Ratio Analysis
Trend Analysis
Ratio Analysis:
The quantitative (such as ratio analysis) tools are used to analyze the gathered data &
different types of computer software are used for reporting the gathered information
from the analysis such as- Microsoft Word, Microsoft Excel etc. Ratio can be classified
into four broad groups-
1) Liquidity Ratio.
2) Activity Ratio.
3) Debt Ratio.
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4) Profitability Ratio.
Trend Analysis:
It is really important to analysis trends in ratios as well as their absolute levels. This
analysis informs us whether a companys financial condition improving or deteriorating.
1.6 LIMITATIONS OF THE REPORT
The limitations I have face while preparing this Report are listed as follows:
o Time constraint was one of the limitation restricting this report to be a more
detailed and analytical one.
o Confidentiality of data was another important barrier that was faced during the
conduct of this study.
o Rush hours and business was another reason that acts as an obstacle while
gathering information.
o The data that seems insufficient may be suffering from lack of reliability to
some extent.
o The study was not done very successfully due to inexperience.
o Electricity problem is the main issue by this time in our country to prepare the
report smoothly and efficiently.
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Chapter: Two
Overview of Banking Sector in Bangladesh
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2.1. Definition of Bank:
A bank is a financial institution which deals with deposits and advances and other
related services. It receives money from those who want to save in the form of deposits
and it lends money to those who need it.
2.2. Characteristics / Features of a Bank:
1. Dealing in Money:
Bank is a financial institution which deals with other people's money i.e. money given
by depositors.
2. Individual / Firm / Company:
A bank may be a person, firm or a company. A banking company means a company

which is in the business of banking.
3. Acceptance of Deposit:
A bank accepts money from the people in the form of deposits which are usually
repayable on demand or after the expiry of a fixed period. It gives safety to the deposits
of its customers. It also acts as a custodian of funds of its customers.
4. Giving Advances:
A bank lends out money in the form of loans to those who require it for different
purposes.
5. Payment and Withdrawal:
A bank provides easy payment and withdrawal facility to its customers in the form of
cheques and drafts; it also brings bank money in circulation. This money is in the form
of cheques, drafts, etc
6. Agency and Utility Services:
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A bank provides various banking facilities to its customers. They include general utility
services and agency services
7. Profit and Service Orientation
A bank is a profit seeking institution having service oriented approach.
8. Ever increasing Functions:
Banking is an evolutionary concept. There is continuous expansion and diversification

as regards the functions, services and activities of a bank.
9. Connecting Link:
A bank acts as a connecting link between borrowers and lenders of money. Banks
collect money from those who have surplus money and give the same to those who are
in need of money.
10. Banking Business:
A bank's main activity should be to do business of banking which should not be

subsidiary to any other business.
11. Name Identity:
A bank should always add the word "bank" to its name to enable people to know that it
is a bank and that it is dealing in money.
2.3. Objective of banking sector:
The main objective of banks is to maintain higher profitability by maintaining circular

and efficient flow of amount of money deposited by the customers and the lenders.
Banks contribute to the economic cycle by keeping the money circulation among
households, government and corporate businesses. The commercial banks lend money
to the economic agents through their various products and services by earning interest
income on the borrowed money. Commercial banks design their short term and long
term loans and other products to cater to the need of customers while enhancing their
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own returns. Their objective is to attract more customers and build profitable
relationships with the new and existing customers.
Another objective of a bank is to lower transaction costs, lower information costs,

create liquidity, and to diversify people's money in a way they could not do on their
own.
2.4. The role of Banks in economy:
Banks play an important and active role in the economic development of a country. If
the banking system in a country is effective, efficient and disciplined it brings about a
rapid growth in the various sectors of the economy. The following is the significance of
commercial banks in the economic development of a country:
1. Banks promote capital formation:
Commercial banks accept deposits from individuals and businesses, these

deposits are then made available to the businesses which make use of them for
productive purposes in the country.
The banks are, therefore, not only the store houses of the countrys wealth, but
also provide financial resources necessary for economic development.
2. Investment in new enterprises:
Businessmen normally hesitate to invest their money in risky enterprises. The

commercial banks generally provide short and medium term loans to
entrepreneurs to invest in new enterprises and adopt new methods of
production.
The provision of timely credit increases the productive capacity of the economy.
3. Promotion of trade and industry:
With the growth of commercial banking, there is vast expansion in trade and
industry.
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The use of bank draft, check, bill of exchange, credit cards and letters of credit
etc has revolutionized both national and international trade.
4. Development of agriculture:
The commercial banks particularly in developing countries are now providing

credit for development of agriculture and small scale industries in rural areas.
The provision of credit to agriculture sector has greatly helped in raising

agriculture productivity and income of the farmers.
1. Balanced development of different regions:
The commercial banks play an important role in achieving balanced

development in different regions of the country.
They help in transferring surplus capital from developed regions to the less
developed regions.
The traders, industrialists etc of less developed regions are able to get adequate
capital for meeting their business needs.
2. Influencing economic activity:
The banks can also influence the economic activity of the country through its
influence on
Availability of credit.
The rate of interest.
If the commercial banks are able to increase the amount of money in circulation
through credit creation or by lowering the rate of interest, it directly affects
economic development.
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A low rate of interest can encourage investment.
The credit creation activity can raise aggregate demand which leads to more
production in the economy.
3. Implementation of Monetary policy:
The central bank of the country controls and regulates volume of credit through
the active cooperation of the banking system in the country.
It helps in bringing price stability and promotes economic growth with in the
shortest possible period of time.
8. Monetization of the economy:
The commercial banks by opening branches in the rural and backward areas are
reducing the exchange of goods through barter.
The use of money has greatly increased the volume of production of goods.
The non monetized sector (barter economy) is now being converted into
monetized sector with the help of commercial banks.
9. Export promotion cells:
In order to increase the exports of the country, the commercial banks have
established export promotion cells.
They provide information about general trade and economic conditions both
inside and outside the country to its customers.
The banks are therefore, making positive contribution in the process of

economic development.
2.5. Evolution of bank:
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The Banking sector of Bangladesh is one of the major sectors, which contributes
significantly to the national economy. The sector comprises a number of banks in various
categories. Considering ownership the sector can be classified in to four major categories -
such as Nationalized Commercial Banks (NCBs), Specialized Banks (SPBs), Private
Commercial Banks (PCBs), and Trans-National Banks (TNBs) (Islam, 2001). The
commercial banking system put on vital role in Bangladesh's financial sector. Bangladesh
Bank is the Central Bank of Bangladesh and the principal regulator of the sector.
Bangladesh have total of 55 states owned, private, foreign and specialize Banks. The
banking system consists of four state-owned commercial banks, 31 private commercial
banks, 10 specialized development banks, and 10 foreign commercial banks. The Nobel
Prize for Grameen Bank is a specialized micro-finance institution, the concept of
microcredit revolution and a major contribution to poverty alleviation and empowerment
of women in Bangladesh. Structure of the banking sector by the type of banks is shown in
table 1 below:
Banking system structure (Billon Taka)
Banks Types Number Number Total % of Deposits % of

of Banks of Assets Assets Deposit
Branches
National 4 3384 786 32.7 654.1 35.2

commercial
Bank
Government 10 1354 187.2 7.8 100.2 5.4

owned
Development
Private 31 1776 1147.8 47.7 955.5 51.3

commercial
Banks
Foreign 10 48 284.9 11.8 150.8 8.1

commercial
Banks
Total 55 6562 2406.7 100.0 1860.6 100.0
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Source: Bangladesh Bank, 2007 and 2015.
2. 6 Historical Background
After the independence, banking industry in Bangladesh started its journey with 6
nationalized commercialized banks, 2state owned specialized banks and 3 foreign Banks.
In the 1980s banking industry achieved significant expansion with the entrance of private
banks. Now, banking sector in Bangladesh is primarily of two types:
A). Schedule Bank
B). Non-schedule Bank
A). Scheduled Bank: The banks which get license to operate under Bank Company
Act, 1991 (Amended in 2003) are termed as Scheduled Bank. State-owned
commercial banks, private commercial banks, Islamic commercial banks, foreign
commercial banks and some specialized banks are Scheduled Bank.
B). Non-Scheduled Bank: The banks which are established for special and definite
objective and operate under the acts that are enacted for meeting up those objectives
are termed as Non-Scheduled Bank. These banks cannot perform all functions as like
as scheduled banks. Grameen Bank, Probashi Kallyan Bank, Karmasangsthan Bank,
Progoti Co-operative Land Development Bank Limited (progoti Bank) and Answer
VDP Unnayan Bank are Non-Scheduled Bank.
3. List of Banks in Bangladesh:
There are 5 types of Banks in Bangladesh. These are:
A) Central Bank
B) State- owned Commercial Banks
C) Private Commercial Banks
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D) Foreign Commercial Banks
E) Specialized Development Banks
A). Central Bank:
Bangladesh Bank
B). State-owned Commercial Banks:
1. Sonali Bank Ltd.

2. Rupali Bank Limited
3. Agrani Bank Limited
4. Janata Bank Limited
C). Private Commercial Banks:
1. United commercial Bank Limited

2. Mutual Trust Bank Limited
3. BRAC Bank Limited
4. Eastern Bank Limited
5. Dutch Bangla Bank Limited
6. Dhaka Bank limited
7. Islami Bank Bangladesh Limited
8. Uttara Bank Limited
9. Pubali Bank Limited
10. IFIC Bank Limited
11. National Bank Limited
12. The City Bank Limited
13. NCC Bank Limited
14. Prime Bank Limited
15. Southeast Bank Limited
16. Al-Arafah Islami Bank Limited
17. Social Islami Bank Limited
18. Standard Bank Limited
19. One Bank Limited
20. Exim Bank Limited
21. Bangladesh Commerce Bank Limited
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22. First Security Islami Bank Limited
23. The Premier Bank Limited
24. Bank Asia Limited
25. Trust Bank Limited
26. Shahjalal Islami Bank Limited
27. Jamuna Bank Limited
28. ICB Islami Bank
29. AB Bank
30. Marcantile Bank Limited
31. The Farmers Bank
32. Agricultuer Bangladesh Bank
33. Union Bank
34. Megna Bank
35. Bangladesh Commerce Bank
D). Foreign Commercial Banks:
1. Citibank
2. HSBC
3. Standard Chartered Bank
4. Commercial Bank of Ceylon
5. State Bank of India
6. Habib Bank Limited
7. National Bank of Pakistan
8. Woori Bank
9. Bank Alfalah
10. ICICI Bank
E). Specialized Development Banks:
1. Bangladeshi Krishi Bank

2. Rajshahi Krishi Unnayan Bank
3. Progoti Co-operative Land Mortgage Bank Limited
4. Grameen Bank
5. The Dhaka Mercantile Co-operative Bank Limited (DMCBL)
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6. Bangladesh Development Bank Limited
7. Bangladesh Somobay Bank Limited (Cooperative Bank)
8. Ansar VDP Unnyan Bank
9. Basic Bank Limited
10. Karmasangstan Bank
2.6 Function of Commercial Banks of Bangladesh
Cash
Credit
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Figure: Function of commercial bank of Bangladesh
2.7. Contribution of Commercial Bank in Bangladesh
Banks promote capital formation

Investment in new enterprises
Promotion of trade and industry
Development of agriculture
Balance development of different savings
Influencing the economy activity
Implementation of monetary policy
Export promotion cells
2.8. Expansion of Bank Branches of Rural Areas
The avowed strategy of government in promoting financial inclusion has witnessed

little realization as private and foreign banks have made hardly any progress in
setting branches in remote and rural areas of the country though they control almost
75 per cent of the banking sector. For example, between February 2007 and
December 2015the percentage of branches of bank in rural areas decreased from
57.94 to 57.20 percent, whereas the share of branches of bank in urban areas
increased from 42.06 to 42.80 percent. Disparity also exists between the level of
commitment of state owned commercial banks and that of private and foreign
commercial banks. As of December 2015, for example, 63.97percent branches of
state owned commercial banks were located in rural areas, as opposed to only 38.08
percent branches of private commercial banks. The foreign banks have yet to
establish any branch in rural areas as of December 2014 (Bangladesh Economic
Review,
2015).
2.9. Problem of the Banking Sector of Bangladesh
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Problem of banking sector is widespread and is not related to banking system only.
The regulatory entity should be independent but accountable. Prudential regulation
should be limited to deposit-taking institutions and should be clearly separated from
non-prudential regulation. The problem of lower profitability of bank is that it might
reduce the tax and thus make a trace on fiscal system where bank is the number one
source of tax under large tax unit of NBR. Moreover, the revenue target may face
hurdle from another side where lower growth of credit may affect investment and
growth, and thus tax collection.
2.10. Possibilities of the Banking Sector of Bangladesh
There are huge possibilities of the banking sector in Bangladesh. These are below:
Banking sector of Bangladesh has a great opportunity to become a major

sector of the national economy.
Bangladesh has huge number of population. This advantage may accelerate
expansion and growth of Bangladeshi banking sector.
Bangladeshi banking sector is very much capable to ensure proper quality of
the product services as per requirement of the global market.
There are ten foreign banks active in Bangladesh, but no Japanese bank yet.
So there are huge prospect for Japanese bank to open their branch in
Bangladesh.
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Chapter: Three
Overview of Mutual Trust Bank Ltd.
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3.1 An Overview of the Organization
Mutual Trust Bank Limited is a sister concern of MTB Group. It has been
incorporated in Dhaka, MTB as a public limited company and its Head Office of the
Bank is located at MTB Centre, 26 Gulshan Avenue Plot 5, Block SE (D), Gulshan
1, Dhaka 1212. The bank operates through its Head Office at Dhaka and 76
branches. The bank carries out international business through a Global Network of
Foreign Correspondent Banks.
3.2 Background and History of the Company
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. 1,000,000,000 divided into 10,000,000
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.
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:
All types of commercial banking activities including Money Market

operations.
Investment in Merchant Banking activities.
Investment in Company activities.
Financiers, Promoters, Capitalists etc.
Financial Intermediary Services.
Any related Financial Services.
The Company (Bank) operates through its Head Office at Dhaka and 76 branches
and 79 ATM booths. The Company/Bank carries out international business through a
Global Network of Foreign Correspondent Banks
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3.3 MTB at a Glance
Name Mutual Trust Bank Ltd.

Registered Office MTB Centre, 26 Gulshan Avenue, Plot 5, Block
SE(D), Gulshan 1, Dhaka-1212
Authorized Capital Authorized Capital of Tk. 380, 00, 00,000 divided
into 38, 00, 00,000 ordinary shares of Tk.10 each.
Paid up Capital BDT 2543 million. As per DSE 2013.
Net Profit (after tax) BDT 988.36 million (as per Annual report 2013)
Operating Profit BDT 1490.55 million (as per Annual report 2013)
Earnings Per Share 46.63 (as per Annual report 2013)
3.4 Shareholders and Shareholding Structure of MTB
Institutional Sponsors, Directors and general public all are involved in composition
of the shareholding structure of MTBL respectively.
Table 2.4.1: Shareholders and Shareholding Structure of MTBL

Sponsors and Directors 39.42 %
Institute 29.44 %
Public 31.14 %
Total 100
3.5 Vision and Mission of MTB
3.5.1 Companys Mission
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We aspire to be the most admired financial institution in the country, recognized
as a dynamic, innovative and client focused company that offers an array of
products and services in the search for excellence and to create an impressive
economic value.
3.5.2 Companys Vision
Mutual Trust Bank's vision is based on a philosophy known as MTB3V. MTBs

visions are:
One of the Best Performing Banks in Bangladesh

The Bank of Choice
A Truly World-class Bank
3.6 Objectives of MTB
To ensure inflow of funds at combination of least possible cost.

To maintain a discreet credit policy.
To enhance versatility and diversification through the penetration of new
market segment, thereby fulfilling unmet needs.
To practice stronger IT-driven initiative that will meet the challenges and
requirements of the bank and its clients.
To enrich the banking section with improved awareness on Corporate
Social Responsibility.
To provide extensive career opportunities through competitive pay and
benefits and a flexible environment.
3.7 Core Values of MTB
Shareholder- Create sustainable economic value for our shareholders

by utilizing an honest and efficient business methodology.
Community- Committed to serve the society through employment
creation, support community project and events and be a responsible
corporate citizen.
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Customer- 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.
Employees- Be reliant on the inherent merit of the employees and
honor our relationship as a tribute to be a part of this renowned
financial institution.
3.8 Organogram of MTB
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MTBL has two departments, which together is the main driver or backbone of the
organization. All the products and services are offered through and the help of these
departments.
Chairman Senior Executive Vice President (SEVP)
Vice Chairman Executive Vice President (EVP)
Managing Director Executive Vice President (EVP)
Senior Vice President (SVP)

Deputy Managing Director
Senior Asst. Vice President (SAVP)
Asst. Vice President (AVP)
Senior Principal Officer (SPO)
Principal Officer (PO)
Senior Executive Officer (SEO)
Senior Officer
3.9 Management Structure (Dept.)
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Chairman
Vice Chairman
Managing Director
Deputy Managing Director
Credit
International Division
General Administration
(EVP) IT HR Accounts
Marketing & Developme
(SEVP) (SAVP) (SAVP) (EVP) (SAVP)
VP SAVP AVP OFFICER SAVP OFFICER AVP
AVP1 AVP1 SPO

OFFICER
OFFICER
AVP2 AVP2
OFFICER
AVP3 AVP3
OFFICER
3.10Products
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3.11. Mutual Trust Bank (MTB) Products Services:
3.11.1. Retail
3.11.2 Deposit Products
Savings Account `
Current Account
Brick by Brick
MTB Double Saver Plan
Childrens Education Plan
Fixed Deposit
MTB Millionaire Plan Monthly Benefit Plan
MTB Senior MTB Inspire
MTB Junior
MTB Graduate
3.11.3. Loan Products
MTB Personal Loan

MTB Auto Loan
MTB Home Loan
MTB Home Equity Loan
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3.11.4. Corporate Banking Products
Term Finance
Working Capital Finance
Trade Finance
Syndication & Structured Finance
Off-Shore Banking
3.11.5. Corporate Deposit Products
Current Deposit Account

Short Term Deposit Account
Savings Bank Account
Fixed Deposit Account
Secured Over Draft (SOD)
Cash Credit (HYPO)
Cash Against Document
Short Term Loan
Inland Bill Purchase(IBP)
Foreign Bill Purchase
3.12. Trade Finance
3.12.1. Export Finance
Back to Back L/C Opening

Export Bill Discounting (FDBP& IDBP)
Secured Over Draft (SOD-general / export bill)
3.12.2. Import Finance
Loan Against Trust Receipt (LTR)

Term Loan(TR)
3.12.3. Non-funded Trade Finance
L/C Opening (Sight & Deferred)

L/C Advising
L/C Transfer
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Bank Guarantee
Secured over Draft (SOD) in the form of SOD (general/ export bill) and SOD (others-
work order, FDR, land, etc)
Bank Guarantee in the form of performance guarantee, Advance
Payment guarantee and Inland Bill Purchase (IBP) includes mainly government
Security bills and bonds. Foreign Bill Purchase (FBP) including foreign draft.
3.12.4. Infrastructure Finance e.g. Power, Telecom, Hotels
Project Financing
Agro-based Project Financing
Micro Financing
3.13. Treasury Services
Money Market
DIBOR
Foreign Exchange
Primary Dealers Business.
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Chapter:Four
TheoreticalAspect
44 | P a g e
4.1 Performance Appraisal
This comprises statement of financial position, statement of comprehensive income,

statement of changes in equity, statement of cash flow, notes and explanatory
materials covering accounting policies.
This is prepared under the historical cost convention and in accordance with the
requirements of the companies Act, 1994 and the international accounting standards
(IASs)/ international financial reporting standards(IFRSs) adopted by the Institute of
Chartered Accountants of Bangladesh (ICAB) as well as those standards, disclosures
recommended by IASs /IFRSs and as applicable to this company.
There are many different ways to measure and analysis of financial performance, but all
measures should be taken in aggregation.
4.2 Income Statement
Income statement is the main part of financial statement, which shows income and
expenditure of companys and as a result shows profit and loss of companys financial
years. Income statement reports a companys results of operations over a period of time.
The income statement provides information on the revenue and expenses incurred by
the company in a fiscal period. It is essential to calculate the net profit or loss of the
company. It also helps to calculate profitability ratios.
4.3 Balance sheet
The balance sheet shows all available assets, liabilities, and owners equity at a
particular time. It has two parts. The first part of balance sheet shows sources of
fund, shareholders equity, all long term loan, short term loan, retained earnings etc.
The second part of balance sheet shows application of funds, all current and noncurrent
assets and liabilities and provisions.
45 | P a g e
The balance sheet highlights overall scenario of companys financial condition. Its also
gives an overview of financial performance of a company.
4.4 Cash flow statement
Statement of cash flow shows cash inflow and outflow of companys cash balances. It
is very essential part for companys financial statement which shows cash inflows and
outflows in operating activities and also shows cash inflows and outflows of investing
activities.
4.5 Statement of Owners Equity
Owners equity is very important part of financial statement. The owners equity
statement uses information from the income statement and provides information to the
balance sheet. It is a part of balance sheet under stock holders equity, and is mostly
affected by net income earn during the fiscal years by the company excluding any
dividends paid to the companies owners or stockholders. This statement is mostly uses
by the stockholders and prospective investors. It shows them how much dividends they
can earn from the company
4.6 Ratio Analysis
Ratio analysis is very important matter of financial performance analysis of a company.

This tool used to conduct a quantitative analysis of financial information in a
companys financial statement.
4.6.1 Liquidity Ratio
Liquidity ratio measures the short term ability of a company to pay its maturing
obligations and to meet unexpected needs for cash. Liquidity ratios shows the current
asset to current debt ratio. The ratios are used to determine the institutions short term
debt paying ability. This ratios are generally used by short term creditors like,
bankers and suppliers.
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Under liquidity ratios management uses those kind of ratios, they are as follows:
Current Ratio
Quick Ratio
Debt Equity Ratio
Inventory Turnover Ratio.
4.6.1.1 Current Ratio
The current ratio measures the current liquidity and ability to meet the short term
obligations. The current ratio is calculated by dividing current assets by current
liabilities.
It can also be expressed as follows:
Current Ratio= Current Assets
Current Liabilities
4.6.1.2 Quick Ratio
The Quick ratio is similar to the current ratio that it excludes inventory, which is
generally least liquid current asset. The ratio is used for measuring the ability of a
company to meet immediate short term obligations and reflect the short term financial
strength of a company. The quick ratio can be measured by dividing the sum of cash,
short term investments and net receivables by current liabilities.
It can also be expressed as follows:
Quick Ratio= (Current Assets-Inventory)
Current Liabilities
4.6.1.3 Debt-Equity Ratio
Debt Equity ratio is very important measures of ratio. This ratio measures the
companies total assets position over the total liabilities.
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Debt-Equity Ratio= (Current Assets-Inventory)
Current Liabilities
4.6.1.4 Inventory Turnover Ratio
Inventory turnover ratio measures the number of times on average the inventory is used
or sales during the period. The purpose is to measure the liquidity of the inventory. It
can be computed by dividing cost of goods sold by the average inventory as follows:
Inventory Turnover Ratio= Cost of Goods sold
Average Inventory
4.6.2 Receivable Turnover Ratio
Receivable turnover ratio measures the number of times on average the company
collects receivables during the period. It can be computed by dividing net credit sales
by the average net receivables as follows:
Receivable Turnover Ratio= Net credit Sales
Average Net Receivable
4.6.3 Asset Turnover Ratio
Asset turnover ratio measures how efficiently a company uses its assets to generate
sales. It is determined by dividing net sales by average assets. The result of ratio
shows the value of sales produced by each amount invested in assets.
Asset Turnover Ratio= Net Sales
Average Assets
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4.6.4 Return on Assets ratio
Return on assets ratio measures how much income is earned by utilizing assets. It can
be computed by dividing net income by average assets as follows:
Return on Asset= Net Income
Average Assets
4.6.5 Return on Owners Equity ratio
Return on owners equity measures the profitability ratio of owners equity. It measures
the profitability of owners investment. The ratio shows how many amount of net
income the company earned for each amount invested by the owners. It can be
computed by dividing net income by average owners equity as follows.
Return on Owners Equity= Net Income
Average Owners Equity
4.6.6 Profit Margin Ratio
Profit margin ratio measures the percentage of each taka of sales that results in net
income. It can be computed by dividing net income by net sales.
Profit Margin Ratio = Net Income
Net Sales
4.6.7 Earnings Per Share Ratio
Earning per share ratio measures the net income earned per common shares It can be
computed by net Income divided by weighted average common shares outstanding.
Earnings per share Ratio = Net Income
Weighted average common shares outstandings
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Chapter:Five
PerformanceAnalysis
50 | P a g e
5.1Performance at a glance
(Tk. in crore)
Table: 5.1.1: 1Performance at a glance
Year 2015 2014 2013 2012 2011

Total Income 2662.10 1429.0 2313.1 1986.3 1575.8
2 7 9 4
Total Expenses 2500.41 1004.3 2012.5 1590.0 1480.5
2 9 3 9
Total Operating 161.69 424.70 300.58 396.36 95.25
Profit
Net Profit/Net Loss 231.11 97.36 (3627.5 20.80 15.75
6)
Paid-up Capital 900.00 900.00 500.00 327.22 327.22
Reserve Fund 1246.95 1196.2 283.13 303.40 283.40
8
Deposits 36438.60 32899. 30230. 27707. 25223.
72 30 90 39
Advances 23116.66 20634. 24102. 22700. 16828.
76 93 96 30
Export 18283.46 17022. 17814. 13957. 12759.
42 40 36 28
Import 16420.80 8881.9 8279.6 12984. 9153.8
6 0 31 9
No. of Employees:
Officer 11507 11769 12118 12380 12732
Staff 10332 10773 11155 11553 11718
Total 21839 22542 23273 23933 24450
No. of Branches:
Urban 563 562 562 562 490
Rural 619 621 621 621 696
Total 1182 1183 1183 1183 1186
5.2 Common-size Statement (Balance Sheet)
Table: 4.2.1: Balance Sheet

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PROPERTY AND ASSETS TAKA %
Cash 20,641,592,198 4.187392
9
Cash in hand (including foreign currency) 4,366,813,852 0.885860
2
Balance with Bangladesh Bank and its 16,274,778,346 3.301532
agentBank 7
Balance with other Banks and financial 9,979,717,359 2.024504
institutions 6
In Bangladesh 5,265,819,000 1.068234
1
Outside Bangladesh 4,713,898,359 0.956270
5
Money at call and short notice 250,857,360 0.050889
4
Investments: 95,093,241,199 19.29079
7
Government 93,947,843,070 19.05843
9
Others 1,145,398,129 0.232357
7
Loans and Advances 231,166,579,46 46.89489
5 5
Loans, Cash Credits, Overdrafts etc. 208,184,384,02 42.23268
5 3
Bills purchased& discounted 22,982,195,440 4.662212
2
Fixed assets including premises, furniture and 9,920,927,663 2.012578
fixtures 4
Other assets 125,893,233,07 25.53894
4 2
Total Assets 492,946,148,31 100
8
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks, financial 545,955,691 0.110753
institutions and agents 6
Deposit and other accounts 364,385,970,93 73.92003
1 6
Current Accounts and other Accounts 98,795,523,389 20.04184
9
Bills payable 6,642,924,279 1.347596
3
Savings Bank Deposits 120,423,161,43 24.42927
2 3
Fixed Deposits 138,524,361,83 28.10131
1 7
Other Deposits 0 0
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Other Liabilities 103,596,507,55 21.01578
9 6
Total Liabilities 468,528,434,18 95.04657
1 6
Capital/ Shareholder's Equity
Paid up capital 9,000,000,000 1.825757
2
Statutory Reserve 3,116,476,533 0.632214
4
Other Reserve 9,353,019,515 1.897371
5
Surplus in Profit and Loss A/C / Retained 2,948,218,089 0.598081
Earnings 2
Total Shareholders' Equity 24,417,714,137 4.953424
3
Total Liabilities and Shareholders' Equity 492,946,148,31 100
8
53 | P a g e
5.3 Evaluating Liquidity Position
Current Ratio:
Current Assets
Current Liabilities
Table: 5.3.1- Current Ratio
Year Current Assets Current Liabilities Current Ratio
2011 11464318193 309692580346 0.037018382
2012 30842225314 290140094220 0.106301149
2013 32241852735 335987250854 0.095961536
2014 30872166917 964931926622 0.03199414
2015 42110002834 406211694002 0.103665166
Graph-1: Current Ratio
2011 2012 2013 2014 2015
Source: Annual Report (Taka in Millions)
Interpretation: The current ratio of Mutual Trust Bank Limited has increased from
year 2011 to 2012 but from year 2013 the current ratio is decreasing. Again in year
2015 ratio is increased. That means it has average liquidity position. The firm can able
to pay its current obligations.
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Cash Ratio:
Cash+ Marketable Securities
Current Liabilities
Table: 5.3.2 Cash ratio

Year Cash Marketabl Current Cash Ratio
e Securities Liabilities
2011 17391147480 0 30969258034 0.056156164
6
2012 19514138474 0 29014009422 0.067257642
0
2013 23407815028 0 33598725085 0.06966876
4
2014 20641592198 0 96493192662 0.02139176
2
2015 28415953542 0 406211694002 0.069953559
Graph-2: Cash ratio
2011 2012 2013 2014 2015
Interpretation: The cash ratios of Mutual Trust Bank Limited for the first 3 years are
increasing but in the year 2014 the ratio is quite low.That indicates the firm has strong
lines of cash available on short notice. In year 2015 again the ratio is increased.
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5.4 Evaluation of Operating Efficiency
Net Working Capital:

Current Assets - Current Liabilities
Table: 5.4.1: Evaluation of operation efficiency
(Taka in Millions)
Year Current Assets Current Liabilities Net Working
Capital
2011 11464.31 309692.58 (298228.26)
2012 30842.22 290140.09 (259297.86)
2013 32241.85 335987.25 (303745.39)
2014 30872.16 964931.92 (934059.75)
2015 42110.00 406211.69 (364101.69)
Interpretation: Net Working Capital of Mutual Trust Bank Limited for the 5 years has
shown negative trend. In 2014 it was highest shortfall of net working capital. However
in 2015 the bank has improved its level of net working capital. But still net working
capital shows negative. The bank should take necessary steps to improve its net
working capital level by turning the negative position into positive.
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Interest Margin:
Interest Income Interest Paid
Table: 5.4.2 Interest Margin
Year Interest Income Interest Paid Interest Margin

2011 11968455635 11413075053 555380582
2012 15962873888 15039410984 923462904
2013 8962089341 6625390799 2336698542
2014 13101861774 13965929070 (864067296)
2015 17683108223 15800026939 1883081284
Graph-4: Interest Margin
Chart Title
8
7
6
5
4
3
2
1
0
2011 2012 2013 2014 2015
Column3 Column2 Column1
Interpretation: For first 3 years, Mutual Trust Bank Limited Interest margin exhibit
increasing trend. But in 2014 the margin became negative. However in 2015 the interest
margin position had improved. The bank may take necessary steps to improve further
the interest margin.
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Cost of Deposit:
Interest Paid X 100
Average Deposit
Table: 5.4.3 Cost Deposit
Year Interest Paid Average Deposit Cost of Deposit (%)
2011 11413075053 277079059813 4.11
2012 15039410984 302303013211 4.97
2013 6625390799 328997209441 2.01
2014 13965929070 364385970931 3.83
2015 15800026939 406151569403 3.89
Graph-5: Cost of deposit
3.89
2.01
4.97 3.83
4.11
2011 2012 2013 2014 2015
Interpretation: Cost of deposit of Mutual Trust Bank Limited in 2012 was highest and
in 2013 it was lowest. Mutual Trust Bank Limited should take necessary steps to
mobilize low cost or no cost deposits to keep the Cost of deposit at minimum.
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Return on Credit:
Interest income X 100
Average Loans and Advances
Table: 5.4.4: Return of Credit

Year Interest Income Average Loans and Return on credit
Advances (%)
2011 11968455635 227009620206 5.27
2012 15962873888 241029268443 6.62
2013 8962089341 206347592413 4.34
2014 13101861774 231166579465 5.67
2015 17683108223 254022504699 6.96
Graph-6: Return on Credit
6.9
4.4
6.2 5.6
5.2
2011 2012 2013 2014 2015
Interpretation: Return on credit of Mutual Trust Bank Limited in 2015 was highest
and in 2013 it was lowest. Mutual Trust Bank Limited should take necessary steps to
mobilize high return on credit to keep the return on credit at maximum.
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5.5 Operating Profitability Ratios
Return on Total Assets (ROA):

Net Profit before Tax X 100
Total Assets
Table: 5.5.1: Return on Total Assets (ROA):
Year Net Profit before Tax Total Assets Return on Total

Assets (%)
2011 208038723 337687117072 0.06
2012 (36275634028) 35293818371 -10.27
2013 (1834170743) 461946232939 -0.39
2014 1336450387 492949148318 0.27
2015 2244267216 543969267865 0.41
Graph-7: Return on Assets
2011 2012 2013 2014 2015
Interpretation: Return on Total assets of Mutual Trust Bank Limitedin 2012 was
lowest and after 2012 the return on total assets were increasing. That shows Mutual
Trust Bank Limitedtries to enhance their net profit before tax generating from assets.
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Return on Equity (ROE):
Net Profit after Tax X 100
Total Equity
Table: 5.5.2 Return on Equity (ROE):
Year Net Profit After Tax Total Equity Return on Equity

(%)
2011 208038723 6306200000 3.29
2012 (36275634028) (28444370219) -127.53
2013 2311114502 21741728899 10.62
2014 973580120 24417714137 3.98
2015 1536766608 30475358113 0.50
Graph-8: Return on Equity
2011 2012 2013 2014 2015
Interpretation: Return on Equity of Mutual Trust Bank Limitedin 2012 was lowest
and in 2013 the return on was highest. Mutual Trust Bank Limitedshould take necessary
steps to enhance their net profit after tax using equity.
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5.6 Risk Analysis
Business Risk:
Standard Deviation of Operating Earnings
Mean of Operating Earnings
Table: 5.6.1: Business Risks
Year Operating earnings
2011 208038723
2012 (36275634028)
2013 (1834170743)
2014 1336450387
2015 2244267216
Mean (6864209689)
SD 16511852169
CV -2.405499383
Interpretation:The business risk is that a bank will not have adequate cash flow to
meet its operating expenses. The higher CV posses higher business risk. Mutual Trust
Bank Limited has negative CV which posses its business risk is lower.
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Financial Risk:
Debt-Equity Ratio: Total Long Term Debt
Total Equity
Table: 5.6.2: Financial Risk
Year Total Long term Total Equity Debt equity

liability ratio
2011 331380917072 6306200000 52.54
2012 381338188590 (28444370219 -13.41
)
2013 440222504040 21741728899 20.24
2014 468528434181 24417714137 19.18
2015 513493909752 30475358113 16.84
Graph-9: Debt-equity ratio
2011 2012 2013 2014 2015
Interpretation: A high debt/equity ratio generally means that a Bank has been
aggressive in financing its growth with debt. The debt equity ratio of Mutual Trust
Bank Limited indicates that in 2011 it was highest and in 2012 it was lowest which
posses that debt used more than equity.
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5.7 Sensitivity Analysis
Table: 5.7.1: Sensitivity Analysis
Particulars Given Data When When
(2015) Interest Interest
income is income is
10% 10%
increased decreased
Interest income 17683108223 19451419045 15914797401
Interest paid on deposit (1580002693 (1580002693 (15800026939
9) 9) )
Net Interest income 1883081284 35251445984 31714824340
Investment income 7709248980 7709248980 7709248980
Commission, exchange & brokerage 6889922752 6889922752 6889922752
Other operating income 283667424 283667424 283667424
Total Operating Income (A) 16765920440 50134285140 46597663496
Salary and allowance 7374257001 7374257001 7374257001
Rent, Taxes, Insurance, electricity 410285295 410285295 410285295
etc.
Legal expenses 38782497 38782497 38782497
Postage, stamp, telecommunication 70943693 70943693 70943693
etc.
Stationary, Printing, Advertisement 138374104 138374104 138374104
etc.
Chief Executives Salary and fees 9600000 9600000 9600000
Directors fees 1729240 1729240 1729240
Auditors fees 855000 855000 855000
Charges on loan losses - - -
Depreciation and repair of bank 196779376 196779376 196779376
assets
Other Expenses 1213847018 1213847018 1213847018
Total Operating expenses before 9455453224 9455453224 9455453224
amortization
Amortization of Intangible Assets 5000000000 5000000000 5000000000
Total operating expenses (B) 14455453224 14455453224 14455453224
Profit/ (Loss) before provision 2310467216 35678831916 32142210272
(C=A-B)
Provision for loan - - -
Provision for diminution in value of (11200000) (11200000) (11200000)
investments
Other provision (55000000) (55000000) (55000000)
Total Provision (D) 66200000 66200000 66200000
Total Profit/(Loss) before taxes (C- 2244267216 35612631916 32076010272
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D)
Provision for taxation
Current tax (981948567) (981948567) (981948567)
Deferred tax 274447959 274447959 274447959
(707500608) (707500608) (707500608)
Net Profit after Taxation 1536766608 36320132524 32783510880
Earnings Per Share (EPS) 17.08 403.557028 364.261232
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5.8 Scenario Analysis
Table: 5.8.1: Scenario Analysis
Particulars Given Data Best Case Worse Case

(2015)
Interest income 17683108223 19451419045 15914797401
Interest paid on deposit (1580002693 (1501002559 (1659002828
9) 2) 6)
Net Interest income 1883081284 34461444637 32504825687
Investment income 7709248980 8480173878 6938324082
Commission, exchange & brokerage 6889922752 7578915027 6200930477
Other operating income 283667424 312034166.4 255300681.6
Total Operating Income (A) 16765920440 50832567709 45899380927
Salary and allowance 7374257001 7005544151 7742969851
Rent, Taxes, Insurance, electricity etc. 410285295 389771030.3 430799559.8
Legal expenses 38782497 36843372.15 40721621.85
Postage, stamp, telecommunication 70943693 67396508.35 74490877.65
etc.
Stationary, Printing, Advertisement 138374104 131455398.8 145292809.2
etc.
Chief Executives Salary and fees 9600000 9120000 10080000
Directors fees 1729240 1642778 1815702
Auditors fees 855000 812250 897750
Charges on loan losses - - -
Depreciation and repair of bank assets 196779376 186940407.2 206618344.8
Other Expenses 1213847018 1153154667 1274539369
Total Operating expenses before 9455453224 8982680563 9928225885
amortization
Amortization of Intangible Assets 5000000000 4750000000 5250000000
Total operating expenses (B) 14455453224 13732680563 15178225885
Profit/ (Loss) before provision 2310467216 37099887146 30721155042
(C=A-B)
Provision for loan - - -
Provision for diminution in value of (11200000) (10640000) (11760000)
investments
Other provision (55000000) (52250000) (57750000)
Total Provision (D) 66200000 62890000 69510000
Total Profit/(Loss) before taxes (C- 2244267216 37036997146 30651645042
D)
Provision for taxation
Current tax (981948567) (932851138.7 (1031045995)
)
Deferred tax 274447959 301892754.9 247003163.1
(707500608) (672125577.6 (42875638.4)
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)
Net Profit after Taxation 1536766608 37709122724 31394520680
Earnings Per Share (EPS) 17.08 418.9902525 348.8280076
In best case, we considered all the income are calculated as an increasing rate of 10% and all
the expenses as decreasing rate of 5%.In worst case, we considered all the expenses as
an increasing rate of 5%and all the income as decreasing rate of 10%.
For the considerable percentages in best case EPS has increased 2453.10% and in worst
case the EPS is decreased 2042.31%.
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Chapter: Six
Findings, Recommendation & Conclusion
6.1 Findings of the Study
As a largest commercial bank and the agent of Bangladesh Bank Mutual Trust
Bank Limited has to do various types of work without thinking about the profit.
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For this reason we have seen that in some cases bank has doing loss, but this
loss we directly cannot say that bank failing los, this is happening only for
helping the nation.
On the other hand we have seen that the bank profit increasing rate is poor but
increasing. The bank is highly liquid and earns much profit on owners equity.
Banks operating efficiency is good. EPS is increasing double per year and
earning spread is also increasing.
So after all we can say that as a nationalized bank commercial bank Mutual
Trust Bank Limited is a bank which is earning better than other nationalized
bank.
6.2 Recommendations:
The Top management of Mutual Trust Bank Limited should be more effective to
the employee then current situation. Because they should take care the branch
level employees benefits, opportunities etc.
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The bank has highly skilled employee in the branch level. But the bank should
be able to utilize these employees at appropriate way to take out the banks
output.
The website design is need to improve. Therefore, the website should be

changed and can put more information about the bank. The existing design
cannot capture the customers attention.
The cheques design is poor. The good looking cheque design can motivate the
customer.
The human resource division can be more effective. Because this human
resource department should think about the employee benefit much.
In the training institute, the training process should be used latest technology to
provide to the trainee. The bank should give training about the office package,
basic idea on computer and internet.
In the branch level when employees could transfer to another department during
that time that employee is needed at least ten days training according on the
transfer position.
The higher management should be more effective about the employee, to take
right strategy, right decision making.
In the branch level employee is working so many extra time, so management

should provide some extra incentives to motivate the employee.
On-line banking is coming soon so the responsible employee should be trained

effectively.
The training evaluation process and form is to be more modernized.
Physical and technological facilities should be increased in evaluating credit

proposals.
Infrastructure should be modernized.
The cost of fund needs to be minimized.
The gap between employees and customers will be reduced through arranging
meetings.
6.3 Conlusion:
72 | P a g e
As a bank Mutual Trust Bank Limited has to do a lot of things for the betterment of the
country. The Bank is strongly positioned in the market and with its core strengths it can
match shareholders expectations and thus raise their wealth in future through ethical
banking and best pricing. Thus, it has to take initiative so that it can fulfill the desire of
the govt. as well as people. It will enhance more public services and build up working
teams to provide the best services to its valuable customers. It must be run in organized
way and discipline must be ensured in all sphere of its performance. Efficient export
team, import team and remittance team must be formed and perform duties properly.
More training, computerization, data collection, market analysis and swiftness in
servicing are essentially required. To do these the recommended suggestions can be
used. Although it is theoretical suggestions, it is not valueless. It has great impact on the
banking business and other sectors of the economy. For this, govt. help is essential and
it is expected that govt. will broaden its hand for implementing the recommendations
for the welfare of the people of Bangladesh.
BIBLIOGRAPHY
73 | P a g e
Books & Articles:
Dr. RamaniMohannDebnath, 2013, Business of Banking, 3 rd Edition, Lotus

Publication Dhaka.
Syed Asraf Ali, Foreign Exchange & Financing of Foreign Trade. 1 st Edition
1995, Academics, 295 Ka/3 Tali office Road, Rayer Bazar, Dhaka-1209.
Annual Report 2015, Mutual Trust Bank Limited International Finance
Press Release, 2015, Mutual Trust Bank Limited 2011-2015. Available from:
Press Relationship Division, Mutual Trust Bank Limited.
References:
http://www.mutualtrust.com.bd/
http://wikipedia.com
http://www.investorswords.com/401/bank.html
http://www.bangladesh-bank.org/fnansys/bankfi.html
http://www.reportbd.com
http://www.Bangladeshtrades.com
74 | P a g e

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The Internship Report

MD. Rasel Mahmud

ID. NO.: 2011110000138

BACHELOR OF BUSINESS ADMINISTRATION

SOUTHEAST UNIVERSITY, DHAKA, BANGLADESH

Date of submission: 3rd September, 2016

The Internship Report

Internship report submitted to the

School of Business Studies, Southeast University, Dhaka

In partial fulfillment of the requirements for the award of the degree of

MD. Rasel Mahmud

ID. NO.: 2011110000138

Under the supervision

Mohammad Azhar Hossain

School of Business Studies

The Dissertation entitled