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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
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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.
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.
1.5 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.
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.
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.
Chapter Two
Literature Review
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
2.6 Slogan
You can bank on us
Executive Officer
(MTO)
Officer
Junior Officer
Assistant Officer
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Chapter Three
General Banking
3.1General Banking
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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.
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
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MTB Kotipati
MTB Gift Cheque
Transfer
Online banking service
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
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network
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
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Eligibility:
Any Bangladeshi with photo ID document as applicable for savings account.
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Transfer
Online banking service
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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
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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.
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Credit voucher
Draft or mail transfer application form
T.T. Pay order application form Call deposit application form
Demand loan pays in slip.
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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.
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
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Transfer Book
ii.
Supplementary
iii.
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.
ix.
x.
Weekly Position
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xi.
xii.
xiii.
Salary Statement
xiv.
Half-yearly Statement
xv.
xvi.
Statement of Reconciliation
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
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
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5,00,001/= To Above
50/= + 8.00
Outward Clearing
Inward Clearing
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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.
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Chapter Four
Findings & Analysis
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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.
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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
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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 &
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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
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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
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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
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4.
5.
6.
7.
5.4 APPENDICES
MTBL = Mutual Trust Bank Ltd.
GBS = General Banking System
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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
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