A Report

On
“Financial Performance evaluation of Mutual
Trust Bank Limited”

SUBMITTED TO:
Dr. A. A. Mahboob Uddin Chowdhury
Professor,
Department of Finance,
University of Dhaka.

Course Name: Commercial Bank Management

Course Code: F-402
Submitted by: Group no: 11
Sl. No. Name ID No:
1. Pantho Sarker 20-033
2. Md. Gulam Kibria 20-075
3. Md. Touhidul Islam 20-077
4. Khaleda Yeasmin 20-087
5. Sheikh Sajid Hasan 20-181

Department of Finance
BBA 20th Batch; Section: A
University of Dhaka

DATE OF SUBMISSION: 4th May, 2017

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 Letter of Transmittal
May 4, 2017
Dr. A. A. Mahboob Uddin Chowdhury
Professor,
Department of Finance,
University of Dhaka.
Subject: Submission of the term paper on “Financial Performance evaluation of Mutual
Trust Bank Limited”.

Dear Sir,
We are very delighted to inform you that, we have completed the report on “Financial
Performance evaluation of Mutual Trust Bank Limited”, a Study on Commercial Bank
Management aspect, successfully as a partial requirement of the course. We enjoyed preparing
this report and it helped us to gain knowledge about the feasibility study of Financial
Performance evaluation of Mutual Trust Bank Limited. We are also very grateful for your
kind help and advice in completing the study. Moreover, in spite of some challenges, we have
finished this task in a friendly environment and the entire team worked very hard while
preparing this report.

We aspire that this study will fulfill your suggestions and expectation. If you need any further
assistance to interpret this study, please inform us. It will be our pleasure to clarify your
questions.

Sincerely,
Group no.
Sl. No. Name ID No: Signatures:
1. Pantho Sarker 20-033
2. Md. Gulam Kibria 20-075
3. Md. Touhidul Islam 20-077
4. Khaleda Yeasmin 20-087
5. Sheikh Sajid Hasan 20-181

3rd year 1st Semester (20th batch), Section: A

Department of Finance
University of Dhaka

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 Acknowledgement

At first we would like to thank the mightiest and our parents. Without their blessing, we could
not be successful in completing the study. We would like to thank our honorable course teacher
of Department of Finance, Dr. A. A. Mahboob Uddin Chowdhury for providing us such an
opportunity to prepare the Report on “Financial Performance evaluation of Mutual Trust
Bank Limited”. Without his helpful guidance, the completion of this report was unthinkable.
During our preparation of the report work, we have come to very supportive touch of different
individuals & friends and professionals who lent their ideas, time & caring guidance to amplify
the report’s contents. We want to convey our heartiest gratitude to them for their valuable
responses.

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 Executive Summary

Mutual Trust Bank Limited is a third generation bank, which started its journey in the banking
sector of Bangladesh in 1999. It is one of the fast growing third generation banks in the banking
sector of Bangladesh.

From the analysis of financial ratios, it is evident that the bank is making more earnings from
the previous year, so the operating expense of the bank is increasing along with the fixed
expenses. Moreover, the overall credit risk of the bank is reducing due to the efficient market
analysis and credit analysis while making loan.

Current capital adequacy ratio (CAR) of Mutual Trust Bank Limited according to the recent
financial statement of 2015, is 12.19 % which more than minimum requirement of 10%.
Moreover, this bank has risk sensitive assets (RSA) of TK. 57,913 million and risk sensitive
liabilities (RSL) of TK. 99,113 million. So, the dollar gap is TK (41200) million and interest
rate sensitivity is 0.58. The cumulative shock of all risks in stress testing analysis of MTB
Limited will bring their revised CAR at 8.57%, 4.99% and 1.04% respectively. So, shocks of
any extend – weak, moderate, or strong- will bring the revised CAR below the minimum
requirement of 10%.

In analyzing the credit granting decision of MTB Limited to Grameenphone,one of their top
ten borrower, the credit grading score of Grameenphoe has been calculated as 76 , which
showing an acceptable credit granting decision.

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