A WORKING REPORT ON MUTUAL TRUST BANK RETAIL

LOAN PRODUCT



By



MalihaNawrin
ID #0730095







An Internship Report Presented in Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Business Administration



INDEPENDENT UNIVERSITY, BANGLADESH
December, 2011







I.
A WORKING REPORT ON MUTUAL TRUST BANK RETAIL
LOAN PRODUCT







By






MalihaNawrin
ID #0730095



Has been approved
December, 2011




Mr. SaquibShahriar
Lecturer,Finance and Accounting
School of Business
Independent University, Bangladesh


II
Letter of Transmittal

December, 2011
Mr. SaquibShahriar
Lecturer, Finance and Accounting
School of Business
Independent University, Bangladesh
Subject: Submission of the internship working report.
Dear Sir,
With due respect, I would like to inform you that it is a great pleasure for me to submit the report
on A Working Report On Mutual Trust Bank Retail Loan Product .As a mandatory
requirement for BBA 499 (Internship) program. I have tried my best to prepare a good report
with providing all of my effort and to cover all aspects regarding the matter. I think that the
report contains the information that you need to get an idea about retail loan product of mutual
trust bank Ltd.

Despite various constraints, I finished this working report at my best effort given where I was. It
would be a great honor for me if you would add your opinions and suggestions for the future.

Thank you once again for supervising me during this difficult transitional time of my career.

Sincerely Yours

...
MalihaNawrin
ID#0730095



III

Acknowledgement

At first, I should thank Almighty Allah for enabling me to complete my internship report in time.
I got appointed to work as an intern at Gazipur branch of Mutual Trust Bank Limited. I worked
gathering experience of working in an office environment. I have tried my best to present both
hands on experience and study in this paper. I would like to express my gratefulness and thanks
to my respected academic supervisor Mr.SaquibShahriar, Faculty member of Independent
University, Bangladesh (IUB) for giving me the useful instructions on how to work on real life
activity. His dynamic guidance at all stages of work encouraged me to accomplish my work
successfully. I would like to thank School of Business, IUB for giving me overall support and
co-operation. I am also thankful to Head of HR Division of Mutual Trust Bank Ltd, Head of
Branch (Gazipur branch) for allowing me to work in Gazipur branch. I am grateful to the
employees of Mutual Trust Bank Ltd.s Gazipur branch for their cooperation.
They have been very helpful in showing me the work process and provided relevant information
for my report whenever I approached. Although being in extreme business of workloads in office
they tried to provide me with necessary information when I asked questions.
It was a great opportunity to do internship in such an organization like Mutual Trust Bank
Limited. I always felt that I was under guidance of highly qualified and experienced personnel.
The experiences I have gathered will be very beneficial in my career.
Objectives of the Study : The main objectives of this internship report are,
To give a brief idea about retail loan product of Mutual Trust Bank Ltd.
To explain my duties and responsibilities in Mutual Trust Bank Ltd.
To have a practical relation & reliability of the topics we have achieved from textual background
in our educational life.

Methodology:
Primary Sources: Primary data sources are informal discussion with professionals and
observation while working in different tasks in MTBs Gazipur Branch
.Secondary Sources: The secondary data sources are website, different published reports, and
different publications, office circular, and product program guide of Mutual Trust Bank Ltd.

Limitations :
Some limitations were faced while conducting this study. The limitations were:-
The employees in Mutual Trust Bank Ltd, Gazipur branch are so much busy in their responsible
fields; they could hardly provide little time to discuss with them.
Another limitation of this report is Banks policy of not disclosing some data and information
for obvious reason, which could be very much useful.

IV
Executive Summary


Mutual Trust Bank is started its journey with a global mission to reach MTBs mission and
vision at September 29, 1999 under the company act 1994 as a public limited. MTB believe that
success depend on the ability to consistently satisfy the every changing choice of customer.

I have worked on the Gazipur branch of Mutual Trust Bank Ltd and my responsibility was at the
General banking section.

The main objectives of this study are to give a brief idea about MTBs retail loan product and
explain my duties and responsibilities in Mutual Trust Bank over these three months.
For collection of data for this report I have used both primary and secondary sources. I had
Collected data from personal observation and informal discussion with the employees of Mutual
Trust Bank Gazipur branch and my other sources are relevant books, newspapers etc. MTB
annual report, 2010, MTB Biz (a monthly business review), Published documents, office
circular.

In this report chapter one is about introduction of Mutual Trust Bank Ltd and the mission vision
of Mutual Trust Bank Ltd. Chapter two is talked about the Mutual Trust Bank s retail banking
,types of retail loan products and briefly discuss about the Mutual Trust Banks personal loan .
Third chapter is about the auto loan of Mutual trust Bank Ltd. chapter four provides information
about the home loan of Mutual Trust Bank. Working experience is in the chapter five chapters
five also contain my positive and negative findings of Mutual Trust Bank Ltd. Last chapter that
means chapter six last chapter is conclusion and recommendation part.

V
TABLE OF CONTENTS
Chapter 1...1
1.0MTB at A Glance.1
1.1Mission of MTB...1
1.2Vision of MTB 1
1.3 Gazipur Branch of Mutual Trust Bank Ltd 1
1.4 Organization chart of MTB 2
Chapter 2...3
2.0Retail banking of MTB 3
2.1Types of retail loan product of MTB3
2.2 MTB Personal Loan3
2.3. Product Features..3
2.4 Borrower Eligibility..4
2.5 Identification and Income Documents. 4
2.6 Co Applicant 4
2.7Telephone...4
2.8 Required document from the Applicant4
2.9 Security.5
2.10 lending process5
2.11 Stamp charges.6
2.12 Repayment..6
Chapter 37
3.0MTB Auto Loan....7
3.1Product Features....7
3.2 Borrower Eligibility..7
3.3Identification and Income Documents...8
3.4Co Applicant..8
3.5Securities8
3.6 Disbursement Process...9
3.7Repayment.9
3.8 Top-ups10
3.9MTB Bank Employees.10
Chapter: 4.11
4.0MTB Home Loan.....11
4.1 Product Features Of MTB Home Loan...11
4.2Location of the property...12
.4.3 LTV =Loan tovalue of property...12
4.4 Borrowers Eligibility...12
.4.5 Eligible Securities..13
4.6 Insurance.14
4.7 Tenor...14
4.8 Repayment method.14
4.9 Assessment Criteria ...14
4.10Approval Cycle......15
4.11 MTB Employee.15
Chapter 516
5.0 Working Experience16
5.1 Introduction.16
5.2 General Banking Divisions..16
5.3 Cash Section.17
5.4 Findings17
Chapter6..19
6.0 Conclusion & Recommendations..19
6.1Conclusion.19
6.2 Recommendations19

Chapter 1


1.0MTB at A Glance: The company was incorporated on September 29,1999under the
companies Act 1994as a public company limited by shares for carrying out all kinds of banking
activities with Authorized capital of tk.3800,000,000 divided into 38,000,000 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 ass licensed by Bangladesh bank under the provision of the banking company 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 71 branches. Mutual Trust
Bank has 50 ATM booths throughout the country The Company/Bank carries out international
business through a Global Network of Foreign Correspondent Banks.

1.1Mission of MTB: 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.

1.2Vision of MTB: Mutual Trust Banks vision is based on the philosophy well known as
MTB3v.We envisions MTB to be:
one of the best performing banks in the country
the bank of choice and
a truly world class bank

1.3 Gazipur Branch of Mutual Trust Bank Ltd: Gazipur branch has started its
operation in Gazipur at 14
th
November 2010.so its a one year aged new branch of Mutual Trust
Bank .currently its deposit amount is around 10 core and the advance and loan amount is 19
million. There are only six officers in the branch with manager. There are three section of the
bank those are general banking section, credit section and cash section.



Page 1
1.4 Organization chart of MTB
-




Page 2

Chapter 2


2.0Retail banking of MTB:Mutual Trust Bank ltd.is one of the largest private retail banks
in the country and serves the needs of individual clients through its extensive branch network
across the country.it offers an array of deposit and loan products to cater to the financial needs of
its large customer base .during the period under review, the bank saw its retail loans grew 32
percent, from 2.26 to 2.99 billion.

2.1 Types of retail loan product of MTB:There are three types of retail loan product of
MTB those are: MTB Personal Loan, MTB Auto Loan and MTB Home Lone.

2.2 MTB Personal Loan: is any purpose unsecured and terminating loan facility (EMI
based) for any legitimate purpose. Bank would finance against gross monthly income of the any
credit worthy individual. To meet life style needs of the credit worthy individuals and to
capitalize the vast market gap, this is a suitable unsecured retail loan product.

2.3 Product Features:
Purpose:MTB Personal Loan is any purpose personal loan. Purpose might be
Considered as follows:
Purchase of miscellaneous household
appliances
Purchase of audio-video equipment
Purchase of furniture
House renovation
Purchase of Personal Computers
Interior Decoration
Marriages in the family
Advance rental payments

Hospitalization or other emergency
medical needs
Trips abroad
Education expenses
Training expenses
Loan takeover or balance transfer
Other legitimate purpose
Purposes not allowed: This loan cannot be taken for solely business purposes like working
capital and industrial machinery purchase. But self-employed professionals, who have private
practices can avail this loan to buy their office equipment, machines, and accessories or premise
renovation
Target Customers :Any credit worthy individuals like:
Salaried executives
Professionals like Doctors, architects, Engineers, Chartered Accountant, Consultant and IT
professionals
Businessperson
Loan Lord or Lady
Non target customers
J ournalist of reasonably lower level & non reputed publications
Lawyers
Page 3
Employees of un reputed Proprietorship Firms & Partnership Firms
Officials of law enforcing agencies
Politicians & Individuals having politically affinity
Travel agents and C & F agents of lower level
Defense officials below Major level
Police Officials below ASP level
MTB Negative listed individuals
Loan amount:
Salaried Executive, Self Employed Professionals & Landlord/lady Minimum TK. 50,000/-.
Maximum TK.10,00,000/-
Businessman Minimum TK. 50,000/-.Maximum TK. 500,000/- or 8 times of gross monthly
income, whichever is lower.
Interest rate and processing fee:Interest Rate is 17%. For salaried executive,
18%. For Businessman, Professional & Loan lord/lady and for the 14.00%: for employee of
MTB and Processing Fee 1.50 % of the loan amount

2.4 Borrower Eligibility:
Age: Any Bangladeshi residentMinimum 21and Maximum 60 years or retirement date whichever is
lower at the end of loan maturity date.
Present AddressBorrower must reside for at least 6 month in the present address.
Minimum Income:
Category Requirement

Amount
Salaried Executives Minimum BDT 15,000/- per month
Self Employed Professionals like
doctors, engineers and architect

Minimum BDT 30,000/- per month

Business person ,landlord and other income
individuals
Minimum BDT 40,000/- per month


2.5 Identification and Income Documents:
National identity or Passport or driver license or Employee Id or Nationality or Ward
Commissioners Certificate with photo attachment
Photograph and business card
Bank Statement for last 6 months
Copy of TIN related document.
Trade license/MOA for businessmen
Copy of house ownership and rent agreement for landlord and land lady

2.6 Co Applicant:Parents, Siblings and spouse are allowed as joint borrower. J oint borrower
is allowed to meet the minimum income criteria jointly. However, in such cases, at least one of
the borrower has to meet the minimum income of BDT 10,000/.
Page 4
2.7Telephone: Applicant must have land phone, mobile or PSTN to avail the credit facility.
Copy of phone bill copy is not required since CPV will verify the phone numbers

2.8 Required document from the Applicant:
Income and identification documents as applicable as per guideline
Bank statement or loan statement showing last 6 EMI payments with loan outstanding status
Loan settlement letter / loan account statement with clear reflection of loan closing issued by
other bank is to be sent to RFC by branches within 7 days of disbursement

2.9 Security:For MTB personal loan security is personal guarantee, One (1) Personal
Guarantee will be required to avail MTB Personal Loan.
Eligibility of guarantor:
Any salaried executive deemed acceptable to MTB or
Professionals (Doctors, Chartered Accountants, and Engineers etc.) deemed acceptable to MTB
Reputed Businessman deemed acceptable to MTB
A guarantor can provide only one personal guarantee for MTB Personal Loan
MTB staff cannot give guarantee against MTB Personal Loan
Required guarantors Documents:
Photograph and business card

2.10 Lending Process:

























Fig: Lending Process of Personal Loan Page 5
Discussedwiththebranchmanager/creditofficer

Customerwishtotakepersonalloan
Donecontractpointverificationbybank
Customergivesapplicationthroughtheloanform
Andalsogivethepersonalguarantyinformation
CollectingCIBreportofthecustomer
PrepareLoanKYCofthecustomer
HeadofficeapprovetheLoansendapprove
lettertothebranch
PrepareLoanproposalandsendtothe
headoffice
Assessmentofcustomerfinancial
requirement
CalculatingtheCRGofcustomer
Documentation:precautionofsanctionadvice
foracceptanceofclientandcollecting3
undatecheqe(incaseofneed)
Loandisbursement
Supervision- Monitoring and Recovery of Credit

2.11 Stamp charges:All relevant Stamp charges will be borne by borrower and will be realized
from the borrowers account at the time of disbursement

2.12 Repayment:repayment Tenor is 12 to 60 months for MTB personal loan. Repayment System
will auto debit installment from customers transactional account with MTBand First Repayment Date
Generally, one month after the date of customers availing the loan. If any personal loan holder missed
any installment of personal loan then he has 2 bear Installment failure charge .which is 3% Penal interest
on the dues amount







































Page 6
Chapter 3


3.0MTB Auto Loan:MTB Auto Loan is a terminating loan facility (EMI based) for the
purpose of financing purchase of brand new and reconditioned but unregistered automobiles for
personal use only, under an Equated Monthly Installment based repayment plan.

3.1product Features:
Purpose :Purchase of brand new and reconditioned Car, J eep, Station Wagon, 4-Wheeler,
Microbus for private use only. Car age should not be more than 6 years old from the date of
manufacturing
Purposes not allowed:Apart from personal use any other purpose will be allowed
Target Customers :Any credit worthy individuals like :
Salaried executives
Doctors, architects, engineers, Chartered Accountant, Consultant and IT professionals
Businessperson
Land lord/lady
Non target customers
J ournalist of reasonably lower level & non reputed publications
Lawyers
Employees of unreputed Proprietorship Firms & Partnership Firms
Officials of law enforcing agencies & Defense officials below Major level
Politicians & Individuals having politically affinity
Travel agents and C & F agents of lower level
Mariners
Public Figures and media personality
MTB Negative listed individuals
Loan Amount(minimum and maximum)
Minimum TK. 3,00,000/-.and Maximum TK.20,00,000/- or 18 times of gross monthly income,
whichever is lower.
Loan to vehicle Price Ratio:
100% cash covered: 100% of quotation price but maximum Tk 20 Lac.
0% cash covered: New 85%, Reconditioned 80%
Interest Rate and processing fee: For general loan 14.50% and For 100% cash covered
loan, interest rate is FD rate +3% or regular rate whichever is lower Up to 50% cash covered
loan, interest rate is FD rate +4% or regular rate whichever is lower and ProcessingFee of MTB
auto loan is 1% of the loan amount for all cases.
Note: in case of 100% cash covered loan 90% of FD value will be provided as loan.

3.2 Borrower Eligibility:
Age Minimum 21 years and Maximum 60 years of any Bangladeshi resident
Present Address Borrower must reside for at least 6 month in the present address.
Page 7
Income : For salaried applicant Tk 30000/-and For businessmen and self-employed applicant Tk
40000/-

3.3Identification and Income Document
Passport or Voter identity or driver license or Employee Id or Nationality or Ward
Commissioners Certificate with photo attachment.
Recent color photograph and business card
Copy of TIN related document
Trade license/MOA for businessmen
Bank Statement for last 6 months
Rent or Lease Agreement of house / property (if applicable) RFC may call any other documents
as and when required.

3.4Co ApplicantParents, Siblings and spouse is allowed as joint borrower. J oint borrower is
allowed to meet the minimum income criteria jointly. However, in such cases, at least one of the
borrower has to meet the minimum income of BDT 20,000/.

3.5Securities:Personal Guarantee 1 personal guarantee is required from any of the following
individuals
Eligibility of guarantor:
Any salaried executive deemed acceptable to MTB or
Professionals (Doctors, Chartered Accountants, and Engineers etc) or
Reputed Businessman acceptable to MTB
A guarantor can provide personal guarantee not exceeding maximum exposure of the product
ceiling and creditability.
MTB staff cannot give guarantee against any retail loan
Required guarantors Documents:
Photograph and business card
Acceptable Securities for cash covered car loan
MTB FD only.
Wage earners bond issued by MTB.
Cash Covered Loan
In case of 100% cash covered auto loan following process will be followed:
No bank statement is required
No CPV and KYC is required
No UDC and guarantee will be required
Copy of photo ID is required
Copy of TIN related document is required
Waiver of GuaranteeNo personal guarantee would be required for 100% cash covered auto
loans.

Page 8


3.6 Disbursement Process:
As soon as Car Loan is approved and approval conditions are fulfilled by sourcing channels,
RFC will issue purchase order in favor of vendor. Customer will register the car in joint name
(both customer and The MTB).
Customer will arrange the comprehensive Insurance (Insurance Company as per MTB approved
Insurance company list), and submits both the documents along with copy of insurance policy,
the Insurance money receipt, delivery challan, money receipt and copy of bill through sourcing
channel to RFC.
Before disbursing the loan, RM/ respective STM (sales team manager) will verify the car
physically and check with registration document.RM/STM will confirm the verification status to
RFC through e-mail.
RFC will disburse Loan amount through transaction a/c. The a/c in which customer provides
UDCs (as per UDC policy)
After disbursement of the loan RFC Asset Ops. Will hold the disbursed amount and advice the
branch through e-mail to issue PO favoring vendor by debiting transaction A/C. The hold fund
instruction only to be withdrawn at the time of issuing PO favoring the respective vendor upon
received the mail confirmation from RFC Asset Ops.
Branch must receive written debit instruction from the customer to debit his transaction account
for issuing PO favoring respective vendor.
PO shall include only the loan amount portion of total quotation amount (i.e. excluding
borrowers equity).
Branch to ensure PO commission and VAT is deducted from customer transaction A/C.
RM/STM will organize to send the PO to the vendor.
Stamp charges :All relevant Stamp charges will be on borrowers account and will be
debited from the account at the time of disbursement

3.7Repayment: repayment Tenor will be 12-60 months. In repayment System will auto debit
installments from customers mother a/c account and First Repayment Date Generally, one
month after the date of customers availing the loan.

Installment failure charge: Penal interest of 3% on the arrear amount.

3.8 Top-ups: Customer can avail more than 1 car loan from MTB after paying 6 EMIs on
regular basis. Product criteria and Income assessment process will apply Separate new loan
account will be created in the case of top-up
Page 9
EMI(Equated Monthly Installment) Schedule Loan
amount 12 24 36 48 60
300,000 27,007 14,475 10,327 8,274 7,059
400,000 36,010 19,300 13,769 11,032 9,412
650,000 58,515 31,363 22,374 17,926 15,294
750,000 67,517 36,188 25,816 20,684 17,647
10,00,000 90,023 48,250 34,421 27,578 23,529
15,00,000 1,35,034 72,375 51,632 41,367 35,293
20,00,000 1,80,046 96,499 68,842 55,156 47,057

3.9MTB Bank Employees:MTB staffs are entitled to avail the loan with following
facilities:
Waiver of CPV and KYC.
Waiver of Processing fee, advance/partial payment and early settlement fee.
Credit criteria and product features will remain same.






























Page 10
Chapter: 4


4.0MTB HOME LOAN:
It is often said that the housing industry is a fair barometer of the country's economy. Invariably,
a successful and thriving economy is represented by a booming real-estate market. This
"barometer" has also performed pretty accurately in Bangladesh, or, more specifically, in Dhaka.
For certain periods of time over the last ten years, our economy has been prospering, and during
that time the housing industry has witnessed a boom.
Commercial banks are increasing their dominance in housing finance and capturing the market
share of the housing finance companies. Bangladesh Bank encourages commercial banks to
increase their participation in housing loan. Moreover Bangladesh Bank opened a housing
refinancing scheme through commercial banks at a lower interest rate 9% for middle and lower
income people. On the other hand lots of developer, Individual builders and land owners are now
working in real estate and housing sector. As a result housing sector is booming and its a biggest
& safe sector of retail lending for all commercial banks.
MTB Home Loan is a terminating facility (EMI based) for house financing purpose. Bank would
finance against gross monthly income of the any credit worthy individuals. To meet
accommodation needs of the credit worthy individuals and to capitalize the vast market gap, this
loan is a suitable retail loan product.

4.1. PRODUCT FEATURES OF MTB HOME LOAN
Purpose:
Purpose might be considered as follows:
Purchase of apartment/house.
House constructions.
Extension/Renovation of existing houses/apartment.
Takeover of other banks/ FIs Home Loans. Purpose not allowed this loan cannot be taken for
any other purpose than individual house financing.
Product range
Home Loan (HL) Purchase of apartment /house for residence purpose.
Home Equity loan (HE) Extending loan facilities for different purposes i.e. House
construction /House extension / House renovation / Face uplifting / Finishing work - for almost
completed property by mortgaging (before disbursement) the existing apartment / houses of the
client on lease hold lands / Private land.
Take Over loan (TO) Transfer existing housing / house renovation loans from any
schedule bank/ financial institution to MTB.
Target Customer:
Segment 1(Salaried):This segment consists of salaried employees of multinational
organizations, middle to large corporate bodies, supranational entities, and government offices,
private organizations having their salary accounts with MTB or other banks.
Page 11

Segment 2(Businessman): This segment consists of businessmen maintaining a/c with us
and/ or for at least 12 months with other bank.
Segment 3(Self Employed Professional): This segment consists of self-employed
professionals maintaining a/c with us and/ or for at least 12 months with other bank.
Segment 4(Land Lord):This segment consists of land lords having a stable source of
earnings from rented premise(s).Having at least six months bank account relationship with any
Bank.
Non target customers :
Lawyers of reasonably low category
Individuals having politically affinity
J ournalists of reasonably lower level
Defense official below Major level
Police Officials below ASP level
MTB Negative listed individuals
Individual solely depends on agricultural
and foreign remittance income.

Loan amount:for the MTB home loanMinimum Loan amount is BDT 500,000 (Taka Five
Lac) and Maximum Loan amount is BDT 100,00,000 (Taka One Hundred Lac)
Maximum loan per individual:
Maximum two home loans are allowed per individual from MTB at a time. Maximum exposure
of two loans can be BDT 100 lac.
Interest rate and processing fees:Interest rate for all loans is 12.75% and Takeover loans
Interest rate will be 1% less than ongoing rate. Processing Fees is 1.25% on loan amount and
there is 0% for take-over loans.

4.2 Location of the property
Property must be located within the developed area of MTB branch command. Property
Construction plan has to be approved from respective local authority like RAJ UK, CDA, and
Pouroshava etc.

4.3 LTV = Loan tovalue of property
Area Salaried individual Self-employed & Others
House Construction /
Renovation / Extension

70% 70%
Apartment Purchase 80% 70%

For 100% cash covered loan LTV may be 100%.Value of the property will be determined by a
third parity enlisted valuer company.


4.4 Borrowers Eligibility
Principal applicant criteria & requirement of Co-applicant.:
Every home loan file must have a principal applicant/main applicant & a co-applicant. Principal
applicant must be the main income earner, if the property owner & the main income earner
person happen to be different. So principal applicant may or may not be the property owner but
Page 12

He has to be the main income earner. Loan tenure will be decided based on the age of the
principal applicant/main income earner & age of the property. Generally, Co-applicant is
mandatory for all proposals except for the cases where the principal applicant happens to be both
(the property owner as well as the main income earner) and agrees to assign his/her Life
Insurance Policy (LIP) in favor of the bank to mitigate the death risk.

Co-applicant Eligibility :Co-applicant Eligibility criteria are identical to that of the
principal applicant/main income generator and shall be part of the immediate family i.e. Spouse,
father, mother, son, daughter, sister and brother only Maximum 2 Co-applicant is allowed Co-
applicant may or may not be the property owner & income earner.
Minimum Age: Minimum age for all general loan applicants is 21 years. And Minimum age
for 100% cash covered loan applicant is 18 years.
MaximumAge:
Salaried: 65 years or retirement age whichever is lower at the time of loan maturity for a
salaried applicant.
Businessmen, self-employed & land lord:Maximum age can be 65 years at loan
maturity. For cash covered loan maximum age at loan maturity is 70 years.
Location of clients: All applicants have to reside within MTB branch command area. All
applicants have to reside at present address at least for last 6 months. And For 100% cash covered
loan applicants may reside anywhere of Bangladesh

Minimum Income:
1. Salaried individual BDT 25000/- from all sources.
2. Business men BDT 40000.00 from all sources
3. Self-employed professional BDT 30000.00 from all sources.
4. For land lord/lady (solely depends on rental income) minimum rental income must be
BDT40000.00Co-applicant may or may not be the income earner. For aggregation of co-
applicant income, minimum required income is BDT 5000.00

4.5 Eligible Securities:
FD with MTB
WEDB issued by MTB.

100% Cash Backed Loan
MTB 100% cash covered loan for wealthy individual and foreign remittance earner who wants to
take a home loan against 100% cash security

Waiver for 100% cash-covered loans:
Work/business experience
Location of customer.
Location of the property (anywhere in Bangladesh)
Property type.
Income assessment.
Page 13

Property insurance.
CPV
UDC

4.6 Insurance:
Property to be insured prior to disbursement
Fire, earthquake risks will be covered. This will be mandatory. Flood and cyclone risk my
covered for flood and cyclone prone area.
All properties to be insured against the loan amount for the whole tenor of the loan. At the time
of disbursement, the insurance must be for a period of at least 12 months.
Property insurance will be renewed by bank for whole loan tenor. Bank will renew the policy
every year by debiting applicant operative account for insurance premium amount. Applicant
has to provide insurance renewal authority and account debit authority to the bank.
Policy should be assigned favoring the bank.
Insurance is not mandatory in case of 100% cash covered loan.

4.7 Tenor:
Loan repayment tenor will be minimum 3 years and maximum 25 years. No fraction of year is
allowed for calculating tenor and Tenor of loan to be decided by the age of the main income
earner/principal applicant and age of the property.

4.8 Repayment method:
System will auto debit installment from customers operative account and for First Repayment
Date no moratorium period is allowed, first installment would fall due within the initial 30 days
from full disbursement. And for partial disbursement Pre-EMI (only interest on disbursed loan
amount) will be fall due after 30 days from first partial disbursement date. And it will follow for
subsequent partial disbursements until full loan disbursement.
Full settlement:Early full and final settlement is allowed and 1.5% charge will applicable of
the outstanding loan amount Installment
Failure charges:Penal interest of 3% on the overdue amount.
Stamp charge: Stamp charges all relevant Stamp charges will be borne by borrower and will
be realized from the borrowers account at the time of disbursement
4.9 ASSESSMENT CRITERIA
Three-dimensional Assessment :
Basically there would be 3 Dimensional assessment in case of Home Loan which are asfollows :
Credit Assessment (CA):Credit assessment will be done by RFC as per income assessment
guideline.
Technical Assessment (TA):Technical assessment will be done by MTB enlisted third
party Valuer Company.

Page 14
Legal assessment (LA):Legal assessment will be done by MTB enlisted third party law
farms. Technical assessment/Valuation of the property. A Bank appointed Valuer Company
would value all properties as per standard templates.
4.10 APPROVAL CYCLE
Conditional approval:
Conditional approval will be provided after full completion of income assessment and initial
legal & technical assessment. This approval will ensure only applicant financial eligibility and
primary feasibility of the project for loan finance, subject to fulfillment of some conditions such
as: Clean/standard CIB, legal vetting, Valuation and completion of security documentation etc.
Final approval:
Final approval will be provided after completion of all three dimensional assessment (i.e.
Financial, Technical/valuation & Legal assessment), satisfactory CIB & CPV report and any
other special conditions imposed by RFC. A final approval/sanction letter will be issued to
initiate disbursement procedure of the loan. Once a loan is approved finally, it will remain valid
for disbursement until 90 days, from the date of approval. After 90 days re-approval is required
but RFC may enhance approval time ate HORFC level with proper credit judgment and in this
connection RFC may call latest CIB of all applicants and any other required docs.
Approval cycle
Approval cycle include following steps.
Application received by RFC from source end.
Conditional approval & offer letter will be issued by RFC after completion of income
assessment and other initial assessment.
Final approval & offer letter will be issued by RFC after completion of legal assessment,
technical assessment, CIB analysis and compliance of other conditions as per conditional
approval.
Disbursement will be made after completion of all disbursement procedure and compliance and
completion of all terms & conditions and tasks. Credit Process Income and DBR validation,
statement analysis and credit decision will be followed by separate policy document titled
Income Assessment Guideline & Loan KYC for Retail Lending of this bank.

4.11 MTB Employee:
MTB staffs are entitled to avail the loan with following facilities:
Waiver of CPV and KYC
Waiver of Processing fee, advance / partial pre-payment fee and early settlement fee
Credit criteria and product features will remain same









Page 15
Chapter 5


5.0 Working Experience

5.1 Introduction
The BBA program is designed to focus on theoretical and professional development of people
open to take up business as a profession as well as service as a career. The course is designed
with an excellent combination of theoretical and practical aspects. This internship provides the
Students to link up their theoretical knowledge into practical fields. In this connection, I was
assigned to Mutual Trust Bank Ltd. Gazipur Branch .general banking for my practical
orientation. This chapter will give a brief idea about my duties and responsibilities over the three
month in Mutual Trust Bank Ltd Gazipur Branch. From the first day of my joining in Mutual
Trust Bank I have given some responsibilities. Through this internship program I have gathered
practical knowledge about the corporate world.

5.2 General Banking Divisions:
General banking is the starting point of all the banking operations. General banking is the front
side banking service department. It deals with 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 from bank. It opens new accounts, issues bank drafts and pay orders etc.
Account Opening
Mutual Trust Bank Ltd opens Savings, Current and different deposit accounts. To open this
Accounts they have account opening forms for each accounts. For Savings, and Current
Accounts the form required detail information about the customer. My duty was to help the
customers to fill up the form. If the customer was not able to fill up the form I had to fill it on the
behalf of them.
Cheque requisition: at the time of a/c opening of current, savings ,MTB inspired ,MTB
rubi.i had to collect their cheque book requisition to collect the requisition I gave them a form to
the a/c opener and after their signature in the specific part I put the a/c number ,name , date, and
address of the client on the requisition form according to their giving information .but I had to
careful at the time of collecting signature of a/c holder of joint a/c and current account as in joint
account both the person has to sign on that form and in current account seal also required with
the signature of the account opener.
ATM cards: I filled up the ATM cards on the behalf of respected customer who is willing to
take ATM card by their giving information in a/c opening form.
Cheque Books giving to the customer:
When the customers come to collect their cheque book it was my responsibility to give them
their check books by first checking their name, picture and signature and then taking their
signature in the received file. And then I posted the cheque book page numbers and other cheque
book related information in the flora softwares cheque book register.

Page 16
Sorting daily transaction voucher:I had another task was shorting the daily transaction
voucher according to the daily supply of the voucher.
TP (transaction profile) &KYC (Know Your Customer): I did hard copy and then
soft copy of customer TP and KYC on the basis of face to face interview with them at the time of
a/c opening. Through the TP bank can get idea about the customers monthly transaction amount
and transaction numbers. And through KYC bank can get idea about the risk level and rating of
the customer.
Giving Information: When the customers come it was my responsibility to give them the
proper information about the Deposit accounts. Like if a customer wants to open a savings
account the required documents and number of photos and introducer.
Daily Expenditure Voucher
It was my responsibility to write down the daily expenditure voucher of Mutual Trust Bank
Limited like local convince, refreshment, generators etc.
Auditing task:I got a different type of flavor at the time of auditing of the bank .from 18
th

October to 25
th
October.at that time I helped the audit person when he was auditing in the
general banking division task.
Flora software: I am really so lucky thats why I got the opportunity to do work in the Banks
own software called flora.in flora I did CRM, Account opening, TP, KYC, cheque book issue
posting, linking between deposit account and brick by brick (DPS) account of the customer, and
my another task was after scanning the signature verification of account in form I add that in
flora.
Corporate Internet System (CIS): I also got opportunity to work in corporate internet. I
used CIS to calculate FDR calculator and through the CIs I learn about the MTBs Product
features and product types .etc.

5.3 Cash Section
Cash section demonstrates liquidity strength of a bank. It is also sensitive as it deals with liquid
money. Maximum concentration is given while working on this section. As far as safety is
concerned special precaution is also taken. Tense situation prevails if there is any imbalance in
the cash account. For the safety reason I have no duties in the cash section.

5.4 Findings
While doing my internship program at MTB Gazipur branch I try to find positive and negative
aspect which is faced by the customer and some time the employees of the MTB .those are:

Positive Aspect:

Skilled manpower: The Gazipur branch is a new Branch of MTB but its all employee are
not new in MTB .maximum of all employee were working in different branches of MTB after
opening this branch they assigned here so all of they are very skilled and experienced employee
of MTB


Page 17
Strong branch network:MTB has strong branch network currently they are operating their
banking activities through 68 branches all over the Bangladesh .so they can equally focus on the
urban and rural areas customer. And MTB is carries their international business through a
Global network of foreign correspondent bank.
Corporate internet system (CIS):which can be accessed only by authorized person,
especially members or employees of the bank, from the 1
st
day of an employees joining,
employee will have access to MTB internet system .employee can provide attendance and book
leave immediately online through the bank internet.
Online Service: Now Bank has an online service in all their branches that also have a strong
Network. Now client can transaction easily whichever branch they want within Bangladesh.
Through the online service client also can transfer their fund in all over the Bangladesh.
ATM Booth:The Mutual Trust Bank has lots of ATM booth all over the Bangladesh so the
MTB ATM Card holder can easily collect money from the MTB booth and the card holder also
can use the DBBL ATM booth also.
Working environment: MTBs working environment is excellent

Negative Aspect:

Shortage of manpower: The Bank has shortage of manpower. As a result its very difficult
to the bank employees to complete the daily task on the time.
Customer related problems:The Bank has no segmentation to handle different types
ofCustomer. They are equally treating of all the customers to provided service. But high status
clients seek on extra honor from Bank or instituted.
Online charge:online service charge creates a negative effect on the customer mind as MTB
does not give any receipt to the customer against the online service charge













Page 18

Chapter6


6.0 Conclusion & Recommendations

6.1Conclusion:
MTB is a local Bank with a global mission to reach MTBs vision and missions ,MTB is
concerned with the well-being of its employee and customer satisfaction .MTB believe that
success depend on the ability to consistently satisfy the every changing choice of customer.
Green Banking strategy concept brings MTB one steps ahead to full fill their mission and vision
and the prove we got from the financial analysis of year 2009 and 2010 .in 2010 MTBs total
assets increased 10.37% and rising from BDT 52,775 million to BDT 58,246 million .a major
contribution to this growth was the increase in loans and advances ,which is jumped by 17.09%
or from BDT 33.884 million to BDT39.676 million .MTB has only completed almost 11 years of
banking services so at the initial stage of banking their achievement in the competitive market is
really great. I also worked in MTB as a intern and observed their activities from very closely so I
can say I m a witness of their golden progressing time .so my optimistic mind want to see a
golden dream with MTB that MTB in near future could be our Bangladeshis first multinational
bank .

6.2 Recommendations :Considering the findings and analysis in the earlier chapters, MTB can
do the following for Further growth and development:
MTB should modify and update its banking software Flora for doing banking daily task
uninterruptedly.
MTB Gazipur branch should increase its advertising to increase the number of the customer for
this purpose they can take the help of Gazipurs local cable tv channels help.
MTB Gazipur branch has lack of employee number so they should employed more employee.
MTB should quickly setup a call center and expend its alternative service delivery channels by
introducing mobile banking.
MTB should make stronger its internet banking.
MTB should establish ATM Booth countrywide as soon as possible.












Page 19
Reference:

Mutual Trust Bank Limited Website:Www.Mutualtrustbank.Com
Flora Banking Software
MTB Corporate Internet
Annual Report Of MTB 2010
Mishkin, F. S. (2008). The Economic Money, Banking, Financial Markets. Pearson Addison
Wesley
Http://Www.Iub.Edu.Bd/
MdAtikurRahman,Senior Assistant Vice President &Manager,Gazipur Branch ,Mutual Trust
Bank.
MdShahinulHaque,SeniorOfficer,General Banking Division,GazipurBranch,Mutual Trust Bank
Ltd.

.

Appendix

(TO BE FILLED IN CAPITAL LETTER)
Tick
New
Renew
Enhancement
Others
Inquiry Form: CIB-1A
(Individual/Institution)
Amount of Loan Applied For :
In Figure : Tk. 1,000,000
In Words : TEN LAC ONLY

Name of the Bank/Financial Institution : MUTUAL TRUST BANK LTD.
1) Name of the Branch : BRANCH Branch Code No :650154
2) Under district of :
3) Reference No. of Branch : Date :
4) Reference No. of Head office : Date :
5) Borrower code (If available) :



6) Name of the Borrower in full :
7) Abbreviated Name :
8) Fathers Name (In case of individual) :
9)
Mothers Name (In case of individual)
:
10) Spouses Name (In case of individual) :
11)
Address: -


a) Permanent
:




b) Present
:




c) Business
:

d) Factory
:

12)
Tel. No.
:

13)
TIN No.
:
To the best of our knowledge the above borrower obtained the credit facilities from different
Bank/Financial institutions as mentioned below :
Name of the Bank/Financial Institutions Name of branch with district
a.
b.




Signature Head of Branch/Manager

Name :
Seal :
Tel : ____________, Ext: ____

Note: Suppression or distortion of any information (related to borrower/owner) by the banks/financial
institution is punishable under Bangladesh Bank Order 1972, Chapter IV Art.48

LETTER OF UNDERTAKING
Annexure-A

To
The Manager
Mutual Trust Bank Ltd. Date:
Branch
Dhaka

Sub: Information regarding the Ownership of Borrower (Individual/ Organization)


I : _______________________________________________owner of____________(Shareholder Director)
Fathers Name : _________________________________Mothers Name:
_________________________________

Husbands Name (for married woman) :

__________________________________________________________
Permanent Address :
_____________________________________________________________________________
Business Address:
_______________________________________________________________________________


I am applying in my own name for sanction of loan / rescheduling of loan. I enclosed the list of
enterprises in my own name/under my owners/under my management and interest-involved in
addition to the one mentioned above. If any enterprise other than the one(s) mentioned below

N\A
is found in my own name /under my ownership/management. I shall be liable to punishment
for providing false statement. The authority will take any action against for suppressing facts
and I shall be legally bound to accept the decision of the authority.


------------------------ ---------------------------
Bank Officials Signature Customer's Signature
Name : Name :
Seal : Date :


At present whether the
organization
avails any credit facilities
YES NO
No
Name of
Organization
Permanent
Address
Business
Address

1


2




3


4



Loan KYC ( Salaried Executives)
Name of Bank staff who
interviewed the applicant :
MD. ABDUS SAQUR
Name of the Applicant:
HALIMA KHATUN
Profession:
SERVICE
Name of loan product:

MTB Personal Loan
Loan amount and Tenor:
[ Please add processing fee
along with loan amount if
customer wants]
Amount : Tk 0.20 mn Tenor : 60 months
Education: Non-graduate Graduate Post-graduate Other
Applicant has political
Connection:
Yes No
Background (Family, parents, in- laws details with profession):
Performance of
Customer
Excellent 5
Satisfactory 4
Average 3

Family: Renowned Muslim family
Father: Late Siam Uddin Ahmed
Mother: Rezia begum




Low 2
Organization & Job Profile:
Performance of
Customer
Excellent 5
Satisfactory 4
Average 3
Employment status: Permanent Contractual
Position/ Designation of the applicant : Junior Officer
Total Length of service: 6 Years
Nature of the business of the company: Banking
Number of employees in the applicants company: Low 2
Life style:
Performance of
Customer
Excellent 5
Satisfactory 4
Average 3
Social Profile:
Very known in the business, corporate and / or social community
Somewhat known to small circles and living good standard of life
Lifestyle-conscious, aspiring or upwardly mobile
Socio Economic Class: Affluent Upper Middle Class Middle Class
Marital Status: Married Single Others
Low 2
Loan behavior & willingness to repay:
Performance of
Customer
Excellent

5

Satisfactory 4
Average
3
Loan with other Banks/ Financial institutions: Yes No
Loan repayment record: Fully Regular Irregular
Credit Card with other Banks/ Financial institutions: Yes No
Card repayment record: Fully Regular Irregular
Commitment to repay the proposed facility: Poor Satisfactory Strong

Low 2
Net worth /financial position of the applicant :
Performance of
Customer
Excellent 5
Satisfactory 4
Average 3

Cash/deposit:50000.00
Investment: 300000.00
Total assets ( fixed assets + cash):350,000.00
Total Loan Liability with banks:
Low 2
Guarantors status:
Performance of
Customer
Excellent 5
Satisfactory 4
Average 3
Willingness & ability to stand as guarantor:
Profession of the guarantor:
Position/ Designation of the guarantor:
Total Length of service/Business:
Guarantors monthly income:
Net worth of the guarantor: N/A
Did he/she provide guarantee to any other MTB Retail Loan: Yes
Low 2
Other special remarks:
Performance of
Customer
Excellent 5
Satisfactory 4
Average 3
Relationshipwith MTB: Yes No
Relationship length with MTB: 1 year more than 3 years more than 5
years
Loans availed with MTB: Yes No
Deposits with MTB: Yes No
Low 2
Total Score Out of 32: 28

Recommendations and Comments:

Waiver sought (if any):