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CHAPTER ONE

INTRODUCTION

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1.1 Introduction
Bank is very old institution that is contributing toward the development of any economy and is
treated as an important service industry in the modern world. Economic history shows that
development has started everywhere with the banking system and its contribution towards
financial development of a country is the highest in the initial stage. Modern banks play an
important part in promoting economic development of a country. Bank provides necessary funds
for executing various programs in the process of economic development .they collect savings
from large masses of people scattered throughout the country, which in the absence of banks
would have remained ideal and unproductive, these scattered amounts are collected, pooled
together and made available to commerce and industry for meeting the financial requirements.
Bank plays a vital role in the economy by providing means of payment and mobilizing resources.
Bank is the most important financial institution in the economic development of a country
depends on the development of banking sector. Today's modern banks are not only providing
traditional banking but also expanding the many financial services. In today's world the life of
the people directly are within the arena of banking whether conventional or Islamic banking is
not a newer concept in Bangladesh as it has started its operation since 1983, very few people are
aware about its operation. But things are changing. Islamic banking is also getting popularity in
the country.

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

1.3 Purpose:
The purpose of this report is the writing purpose as well as to know about the activities of the
companies, and their performances. Report can cover a wide range of topics but usually focus on
transmitting information with a clear purpose to a specific audience. Reports are documents that
are accurate, objectives and complete information.

1.4 Objectives of the report:


Main objectives are:

 To know the General Banking system of MTBL


 To understand the Financial and Accounting techniques of MTBL. In fact this is the
prime objective and I have chosen this as the topic of my report.
 To have the idea about the communication between the Branch office and Head office.
 To better understand about the General Banking activities.
 To learn the Banking Laws.

Others objectives are:

 To understand the banking business in Bangladesh. How banking transaction take place.
 To observe the authorities, tasks & responsibilities of the bankers.
 The rules & regulation of private commercial bank.
 To know the background of the MTBL.
 To know the work environment & organizational behavior of the bank.

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1.5 Methodology of the Study:
The methodology of the report is given below-

 For the procedure of different banking operations, I had observed the operations
and worked with the officers at the same time. I had interviewed the MTBL
officials for getting more information.
 For the analysis part, data have been collected from different statements and the
annual report of the bank.

1.6 Sources of Information


The data collection method of study consists of both of primary and secondary sources. But
majority of the information was collected from secondary sources.

1.6.1 Primary Data:


Primary data is mostly derived from the discussion with the employees & conversation with
customers of the organization. Primary information is under consideration in the following
manner:

 Face to face conversation with the employees


 Practical work experience from different department of the concerned officers.
 Discussion with customers regarding quality of service of the bank.
 Guidelines and suggestions from all the senior employees in charge of mutual
trust bank.

1.6.2 Secondary data:


Secondary source that will be used in the study in include

1.6.2.1 Internal Sources

 Bank’s Annual Report


 Published Booklist of Mutual Trust Bank Ltd.
 Magazine of Mutual Trust Bank Ltd.
 Any information regarding the Banking sector.

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1.6.2.2 External Sources

 Different books and periodicals related to the banking sector.


 Bangladesh Bank Report.
 Newspaper.
 Bank Website.

1.7 Scope of the Report


Mutual Trust Bank Limited is one of the new generation banks in Bangladesh. The scope of the
study is limited to the Laldighirpar Branch only. The report covers the organizational structure;
background, functions and the performance of the bank have mainly worked in the General
Banking so my report covers all the activities of General Banking department in the Laldighirpar
Branch. While preparing this report I haven’t any limitations the employees of General Banking
department has helped me a lot and I have use both primary and secondary data which was
available to me.

1.8 Limitation of the report:

Three months is not enough to know about commercial banking operation through I have been
received maximum assistance from the every individual of the MTBL Laldighirpar Branch.
Definitely, I could not produce an outstanding report for the time limitations. Due to the time
limit, the scope and dimension of the study has been curtailed.

The term paper is likely to have following limitations:

 Since the ideal size of data could not be taken, suggested Operating process may not be
useful without appropriate modifications.
 Due to shortage of time, the accuracy of information may not have been completely
perfect.
 The Operating Process is a theoretical suggestion. Only a practical application of this
may justify its effectiveness that could not be done due to time limitation.
 Confidentiality of data was another important barrier that was faced during the conduct of
this study. Every organization has their own secrecy that is not revealed to others. While

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collecting data on MTBL, personnel did not disclose enough information for the sake of
confidentiality of the organization.

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CHAPTER TWO
OVERVIEW OF THE BANKING INDUSTRY

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2.1 Bank

Bank is defined as a financial institution that collects deposits from various individual and
organizations and provides loans to those who need it.

“A bank is an economic institution whose main aim is earn profit through exchange of money
and credit instrument” – John Harry.

“A bank is a financial intermediary, - a dealer in loans and debts” – Cairn Cross.

2.2 Banker:

A banker is a dealer in debts his own or other peoples’-Prof Crowther.

2.3 Banking:

Banking is the process through which an institution, most often owned by the government,
provides financial services. They include collecting deposits, landing money and issuing debit
and credit cards.

Example: Cash transferring

2.4 World Banking History:

A bank is a financial institution licensed by a government. Its primary activities include


providing financial services to customers while enriching its investors. Many financial activities
were allowed over time. The level of government regulation of the banking industry varies
widely, with countries such as Iceland, having relatively light regulation of the banking sector,
and countries such as China having a wide variety regulations but no systematic process that can
be followed typical of a communist system.

The name bank derives from the Italian word banco “desk/bench”, used during the Renaissance
by Jewish Florentine bankers, who used to make their transactions above a desk covered by a
green tablecloth. However, there are traces of banking activity even in ancient times.

Banking began with the first prototype banks of merchants of the ancient world, which
made grain loans to farmers and traders who carried goods between cities and this system is

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known as a barter system. This began around 2000 BC in Assyria and Babylonia. Later,
in ancient Greece and during the Roman Empire, lenders based in temples made loans and added
two important innovations: they accepted deposits and changed money. Archaeology from this
12 into banknotes) were issued for money deposited as a loan to the goldsmith. The goldsmith
paid interest on these deposits. Since the promissory notes were payable on demand, and the
advances (loans) to the goldsmith's customers were repayable over a longer time period, this was
an early form of fractional reserve banking. The promissory notes developed into an assignable
instrument which could circulate as a safe and convenient form of money backed by the
goldsmith's promise to pay, allowing goldsmiths to advance loans with little risk of default.
Thus, the goldsmiths of London became the forerunners of banking by creating new money
based on credit.

The Bank of England was the first to begin the permanent issue of banknotes, in 1695.
The Royal Bank of Scotland established the first overdraft facility in 1728. By the beginning of
the 19th century a bankers' clearing house was established in London to allow multiple banks to
clear transactions. The Rothschild’s pioneered international finance on a large scale, financing
the purchase of the Suez Canal for the British government.

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2.5 Function of Bank:
The functions of banks are briefly highlighted in the following Diagram

2.6 Characteristics of a Bank:

 Dealing in Money: Bank is a financial institution which deals with other people’s
money i.e. money given by depositors.
 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.
 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.
 Giving advances: A bank lends out money in the form of loans to those who
require it for different purposes.
 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.
 Agency and Utility services: A bank provides various banking facilities to its
customers. They include general utility services and agency services.

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 Profit and Service orientation: A Bank is a profit seeking institution having
service oriented approach.
 Ever increasing functions: Banking is an evolutionary concept. There is
continuous expansion and diversification as regards the functions, services and
activities of a bank.
 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.
 Banking business: A bank’s main activity should be to do business of banking
which should not be subsidiary to any other.

2.7 History of Banking in Bangladesh


The banking sector of Bangladesh is one of the major contributors to the Bangladesh
economy with the commercial sector playing a pivotal role in the financial sector. The banking
industry in Bangladesh began with six nationalized commercialized banks, two state-owned
specialized banks and three foreign banks after Bangladesh attained independence in 1971. In
the 1980s, the banking industry of Bangladesh achieved significant development with the
establishment of private banks. Since then, various other forms of financial institutions have
been formed to reform the transaction system in Bangladesh. Currently, there are five major
categories of banking in existence- Central Bank, State- owned Commercial Banks (SCBs),
Private Commercial Banks (PCBs), Foreign Commercial Banks, Specialized Development
Banks. Before delving further into these reformations, let us briefly look at the initiation of the
banking system in Bangladesh.

The first bank in Bangladesh was established in 1846, named as Dacca Bank. Its operations
were limited and it did not engage in issuing banknotes. Dacca Bank was later purchased by
Bank of Bengal in 1862 after which it opened its branches in Chittagong, Sirajganj (1873) and
Chandpur (1900). After the partition of 1947, a total of six branches were in existence,
additionally including Mymensingh, Narayanganj and Rangpur. During independence of 1971,
the Bangladesh banking system consisted of two branch offices of the former State Bank of
Pakistan and seventeen large commercial banks and there were fourteen smaller commercial
banks.

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The formally known ‘State Bank of Pakistan’ was renamed as ‘Bangladesh Bank’ right after
Bangladesh’s independence. The Bangladesh Bank automatically became official foreign
exchange reserve institute. It was too accountable for currency control, monitoring exchange and
credit control. In the early 1970s, the government decided to permit foreign banks to continue
their business and nationalize the local banks.

In that very decade of 1970s, the primary concern of the government was to develop the
country’s agricultural industry. This resulted in the Krishi Bank extending loans to more farmers.
In the later decades, however, the county’s focus shifted to industrialization; resulting in various
difficulties in the economic growth process.

Lack of proper private activity guidelines and proper methods on loan giving were more
significant of these problems. It was not until the late 1980s that these difficulties were being
overcome and compensated for the agro sector. However the financial institutions failed to
recover the loans the industrial sector. The bank gave out small amount of loans to the poor
population in order for themselves to be self-employed. In the mid ‘1980s, the government
adopted new policies for recovery. It did not work. Government-owned banks continued to fail
on recovering the loans.

In the 1990s, many private banks started to emerge. Local group of companies became
aggressive in investment so the money flow was rather big. Bangladesh Bank played key role in
managing these private banks with modern outlook. As consciences the banking sector grew
manifolds.
Throughout the 2000s, governments maintained positive economic policies. The economy grew,
so did the Bangladesh's banking sector and business sector. Since 2011 however, many banking
scams took place, mainly at government owned banks. This created a bad vibe which is still to
recover from.

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2.8 Bangladesh Bank

Bangladesh Bank (BB) has been working as the central bank since the country’s independence.
Its prime jobs include issuing of currency, maintaining foreign exchange reserve and providing
transaction facilities of all public monetary matters.BB is also responsible for planning the
government’s monetary policy and implementing it thereby.

The BB has a governing body comprising of nine members with the Governor as its chief. Apart
from the head office in Dhaka, it has nine more branches, of which two in Dhaka and one each in
Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Rangpur and Barisal.

The responsibility of Bangladesh bank was

♦ Regulating currency,
♦ Controlling credit,
♦ Monetary policy,
♦ Administering exchange control and
♦ The official foreign exchange reserves.

2.9 Types of Banks in Bangladesh:

The banking system of Bangladesh is composed of 5 types of Bank. They are

 Central bank
 State owned commercial bank
 Private commercial bank
 Foreign commercial bank
 Specialized development banks

2.9.1 Central Bank:

Central Bank is the banker of all Banks. It’s a non-profit seeking organization.

Pursuant to Bangladesh Bank Order, 1972 the Government of Bangladesh reorganized the Dhaka
branch of the State Bank of Pakistan as the Central Bank of the country, and named it
Bangladesh Bank with respective effect from 16 December 1971.

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2.9.2 State Owned Commercial Banks:

There are six state-owned commercial Bank in Bangladesh which is fully or majorly owned by
the government of Bangladesh.

 Sonali Bank Ltd.


 Janata Bank Ltd.
 Agrani Bank Ltd.
 Rupali Bank Ltd.
 Bangladesh Development Bank Limited.
 Basic Bank Limited.

2.9.3 Private Commercial Banks:

Private Banks are the highest growth sector due to the dismal performances of government
banks.

 AB Bank Limited
 Bangladesh Commerce Bank Limited
 Bank Asia Limited
 BRAC Bank
 City Bank Limited
 Dhaka Bank Limited
 Dutch-Bangla Bank Limited
 Eastern Bank Limited
 IFIC Bank Limited
 Jamuna Bank LimitedMeghna Bank Limited
 Mercantile Bank Limited
 Midland Bank
 Modhumoti Bank Limited
 Mutual Trust Bank Limited
 National Bank Limited

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 National Credit & Commerce Bank Limited
 NRB Bank Limited
 NRB Commercial Bank Limited
 One Bank Limited
 Premier Bank Limited
 Prime Bank Limited
 Pubali Bank Limited
 South Bangla Agriculture & Commerce Bank Limited
 Southeast Bank Limited
 Standard Bank Limited
 The Farmers Bank Limited
 Trust Bank Limited
 United Commercial Bank Limited
 Uttara Bank Limited
 Shimanto Bank Ltd

2.9.4 Foreign Commercial Banks:

There are nine foreign commercial banks are operating in Bangladesh. They have different
products and service culture to serve the customer.

 Bank Al-Falah Limited


 Citibank N.A
 Commercial Bank of Ceylon PLC
 Habib Bank Limited
 National Bank of Pakistan
 Standard Chartered Bank
 State Bank of India
 Punjab National Bank
 HSBC

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2.9.5 Islamic Commercial Banks:

 Islami Somaz Bank Limited


 Al-Arafah Islami Bank Limited
 EXIM Bank Limited
 First Security Islami Bank Limited
 ICB Islamic Bank Limited
 Islami Bank Bangladesh Limited
 Shahjalal Islami Bank Limited
 Social Islami Bank Limited
 Union Bank Limited

2.9.6 Specialized Banks:

Specialized banks which were established for specific objectives like agricultural or industrial
development. These banks are also fully or majorly owned by the government of Bangladesh.

 Bangladesh Krishi Bank .


 Rajshahi Krishi Unnayan Bank

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CHAPTER THREE

ORGANIZATIONAL OVERVIEW OF MTBL

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3.1 Introduction:

Mutual Trust Bank Limited (MTBL) is a Public Limited Company by shares in Bangladesh, with
commendable operating performance. Directed by the mission to provide with prompt and
efficient services to clients, MTBL also provides a wide range of commercial banking services.
The bank has achieved success among its peer group within a short span of time with its
professional and dedicated team of management 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.

3.2 History of MTBL:

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

The Company was also issued Certificate for Commencement of Business on the same day and
was granted license on October 05, 1999 by Bangladesh Bank under the Banking Companies Act
1991 and started its banking operation on October 24, 1999. As envisaged in the Memorandum
of Association and as licensed by Bangladesh Bank under the provisions of the Banking
Companies Act 1991, the Company started its banking operation and entitled to carry out the
these types of banking business: Retail Banking, Wholesale Banking, Small and Medium
Enterprises (SME) Banking, NRB Banking, Agent Banking, Treasury Operations, Privilege
Banking and Air Lounge.

The Company (Bank) operates through its Principal office at Dhaka and 68 branches and 12
SME/Agri Branches Service Centers. The Company/Bank carries out international business
through a Global Network of Foreign Correspondent Banks.

I. Investment in Merchant Banking Activities

II. Investment in Company Activities Financial, Promoters, Capitalists

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III. Financial Intermediary Services

IV. Any related Financial Service

3.3 Mission, Vision and Slogan of MTBL:

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

3.3.2 Vision:
Mutual Trust Bank’s vision is based on a philosophy known as MTB 3 vision. We envision MTB
to be:

1) One of the best performing Bank in Bangladesh.

2) The bank of choice.

3) A truly world class bank.

3.3.3 Slogan:
“YOU CAN BANK ON US”

3.4 MTB Profile:


Registered name of the company Mutual Trust Bank Limited
Company Registration No: C38707 (665)/99 on September 29, 1999
Bangladesh Bank Permission No: BRPD (P) 744(78)/99-3081 on October 5,
1999
SWIFT Code: MTBL BD DH
Registered Office: MTB Centre
26 Gulshan Avenue
Gulshan 1
Dhaka 1212, Bangladesh
Corporate Website www.mutualtrustbank.com

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3.5 Objectives of MTBL:
The main object of the Mutual Trust Bank Limited (MTBL) is to offer an international standard
banking service system in the financial market. Apart from that, the bank started its operation in
the country with a view to realizing the following objectives:

 To establish a partnership relationship with customer and to eliminate the idea of the
debtor-creditor relationship of traditional banks.
 To establish welfare oriented banking system.
 To mobilize savings towards productive sectors.
 To invest on profit and risk sharing basis.
 To accept deposits on profit and loss sharing basis.
 To create employment opportunities by investing savings towards prospective
economic sectors.
 To extend banking services towards the poor, helpless and low-income group of
people in the society in order to uplift of their standard of living.
 To contribute to establishment of a society by equitable distribution of wealth.
 To establish justice in the trade and commerce in the country.
 To render services for the economic development of the nation.

3.6 Functions of MTBL:


The functions of Mutual Trust Bank Limited are as follows:
 To maintain all types of deposit accounts with online facilities.
 To conduct foreign exchange business.
 To extend other banking services.
 To conduct social welfare activities.

3.7 MTB Division:


 Human resource Division
 General Services Division
 Audit and Inspection Division
 Finance and Administration Division

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 International Division
 Marketing Division
 Credit Card Division
 Computer Division
 Tax Department
 Law and Recovery Division.

3.8 MTB Board of Directors:

Name Designation

Mr. M. A. Rouf, JP Chairman

Mr. Md. Hedayetullah Vice Chairman

Mr. Syed Manzur Elahi Founding Chairman

Dr. Arif Dowla Director

Mr. Rashed Ahmed Chowdhury Director

Mr. Md. Abdul Malek Director

Mr. Md. Wakiluddin Director

Mrs. Khwaja Nargis Hossain Director

Mr. Anjan Chowdhury Director

Mr. Q.A.F.M. Serajul Islam Director

Mr. Anwarul Amin Independent Director

Dr. Sultan Hafeez Rahman Independent Director

Mr. Anis A. Khan Managing Director & CEO

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3.9 Senior Management of Mutual Trust Bank Limited:

Anis A. Khan,
Managing Director & CEO

Md. Hashem Chowdhury


Additional Managing Director & COO

Md. Zakir Hussain Syed Rafiqul Haq


Deputy Managing Director & GCRO Deputy Managing Director & CBO

Md. Nurul Islam


Senior Executive Vice President

Goutam Prosad Das Syed Rafiqul Hossain


Senior Executive Vice President Senior Executive Vice President

Md. Khurshed Ul Alam


Senior Executive Vice President

Swapan Kumar Biswas Tarek Reaz Khan


Senior Executive Vice President Senior Executive Vice President

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3.10 Organizational Hierarchy of MTBL:

Chairman

Vice Chairman

Managing Director

Additional Managing Director

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

First Assistant Vice President

Junior Assistant Vice President

Senior Officer

Officer / Trainee Officer

Junior Officer

Assistant Officer

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3.11 MTB Awards:

 Best SME Bank of the year 2014.


 The Golden Globe Tigers Summit Award 2015 Excellence & Leadership in
Branding & Marketing.
 Best Women Entrepreneurs friendly Bank of the year 2014.
 DHL- The Daily Star Bangladesh Business Award for the best financial
institution award of 2014.
 MTB Managing Director & CEO wins “Bangladesh Best Employer Brand
Awards 2017” in ‘Exemplary Leader’ and ‘CEO of the Year’ categories

3.12 Branches of MTBL:


Branches by Districts:
Name of Districts No. of Branches

Barisal 02

Bogra 01

Brahmanbaria 01

Chittagong 17

Comilla 05

Cox's Bazar 02

Dhaka 38

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Dinajpur 01

Feni 02

Gaibandha 01

Gazipur 08

Habiganj 01

Jessore 01

Joypurhat 01

Khulna 02

Kushtia 01

Lakshmipur 02

Madaripur 01

Moulvibazar 01

Munshiganj 01

Mymensingh 03

Naogaon 01

Narayanganj 04

Noakhali 01

Pabna 02

Rajshahi 02

Rangpur 01

Shariatpur 01

Sirajganj 02

Sunamganj 01

Sylhet 03

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Tangail 02

Thakurgaon 01

Total 114

3.13 Banking Services and Products:


Mutual Trust Bank provides the following services and financial products:

3.13.1 Retails Banking: We aim to satisfy all clients, regardless of how big or small they
may be. Individuals are counseled on the best type of accounts suitable to them. At MTB we
have designed different type of retail product to meet different need. The following are our range
of retail banking product.

(I) Deposit Product

(II) Loan Product

(III) MTB Card

(I) Deposit Product: MTB has designed various deposit accounts to service all your different
needs. From a straight forward Savings account to Fixed Deposits, it strives to give you the best
value for your money. Its accounts enable you to priorities between flexibility, highest interest
yield and convenience.

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 Deposit Products of MTBL are 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, MTB
Kotipati and MTB Gift Cheque.

(II) Loan Product:

Whatever credit facility you are looking for, you will surely find it at MTB. It has a
comprehensive selection of facilities to offer, from a simple personal loan, credit cards, auto loan
and overdraft facilities to home loan.

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 MTB Personal Loan
 MTB Professional Loan
 MTB Home Loan
 MTB Home Equity Loan
 MTB Auto loan

(III) MTB Card:

1. Debit Card

These Debit card can be used at any Visa/Master ATM across the country including MTB
ATM’s for cash withdrawals. On top of that it can be used in Visa/Master enabled POS machine
across the country. MTB Debit Cards are

 Visa Classic Debit


 Master Gold Debit
 Master Card Titanium
 Visa Platinum Debit
 Master Card World

2. Credit Card

 MTB Visa Classic Credit Card


 MTB Visa Gold Local Credit Card
 MTB Visa Dual Gold Credit Card
 MTB VISA Platinum Credit Card

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 MTB Visa Signature Credit Card
 MTB Classic Master Credit Card
 MTB Gold Master Credit Card
 MTB Titanium Master Credit Card
 MTB World Master Card Credit Card

3.13.2 Corporate Banking:


The promise of world class corporate banking has created a new panorama opportunity to
leverage on our excellent image created over the years. MTB offer flexible of options to afford
the right financial products and services, designed particularly to meet immediate needs,
individually concerned and professionally realized. Now we focused our corporate Banking.

1) Term Finance.

2) Working Capital Finance.

3) Trade Finance

4) Offshore Finance.

5) Syndication & Structured Finance.

3.13.3 SME Banking:


SME’s has different types of credit needs and have designed a number of loan products to meet
the needs.

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SME Loan Products:

MTB Green Energy Loan, MTB Bhagyoboti, MTB Krishi, MTB Mousumi, MTB Revolving
Loan, MTB Small Business Loan, Micro Digoon

SME Deposit Products:

MTB Probaho
MTB Buniad

3.13.4 NRB Banking:


MTB offers an array of deposit products in local currency for the NRBs who are residing abroad
and want to save their hard-earned money to utilize in future and facilitate their family
maintenance.

NRB Products:

 NRB Savings A/C


 NRB DPS A/C
 NRB FDR

3.13.5 Agent Banking:

Agent Banking refers to providing financial services to the underserved population through
engaged agents who conduct banking transactions on behalf of the bank. These agents or
retailers, who are usually the owners of outlets, are increasingly becoming an important
distribution channel in reaching to the unbanked segment of the society in addition to the
existing customer with a wide array of financial services especially to geographically dispersed
locations.

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 MTB Agent Banking Centres:
Mutual Trust Bank Limited (MTB) launched its first Agent Banking Centre at Jahapur Bazar,
Muradnagar, Comilla during the second quarter of 2016. The second and third MTB Agent
Banking Centres were launched at Momtaj Miar Hat, Feni and Bagerhat, Feni around the same
time.
At present MTB has 53 Agent Banking Centers.

 MTB Agent Banking Services:


Account Opening (Savings, Current, DPS, Term Deposit, SME / Retail / Agricultural loans),
Cash Deposit, Cash Withdrawal, Fund Transfer to any MTB Account, Electronic Fund transfer
through BEFTN, Electronic Fund transfer through RTGS, Inward Foreign Remittance Cash
Payout, Inward Foreign Remittance in Account Utility Bill Collection, Receiving Clearing
Cheque SMART Card (NID) Fee Collection SME Loan File, Initiation Agricultural Loan File,
Initiate Retail Loan File, Initiation Debit/Credit Card Request Processing, Mobile Recharge,
Insurance Premium Collection, School Banking Solution (Student Account, Fee Collection &
Payroll for Teachers),Social Safety-net Cash Disbursement, Balance Inquiry, Account
Statements.

3.13.6 Treasury Service:


MTB treasury offers sophisticated solutions supported by a large sales force and a state of the art
dealing room in Bangladesh.
Currently its team covers Foreign Exchange, Fixed Income, Money Market, Corporate Sales and
Primary Dealers Business.

(1)Money Market

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(2)DIBOR

(3)Foreign Exchange

(4)Primary Dealer

3.13.7 MTB Privileged Banking:


MTB is making a rapid progress to establish itself as the leading and technologically advanced
private bank in the country. MTB has been prudent and visionary to understand the potentiality
of providing lasting and tailor made services to the High Net worth Individuals; thus MTB
launched Privilege Banking in 2010.

Privileged Services:
 Complimentary Access to Airport Lounge
 Complimentary Airport Limousine Service
 Complimentary Airport Meet & Greet from terminal to immigration or vice versa
 Customized Health care privileges at top hospitals of Bangladesh and abroad
 Celebrating special days with personalized wishes and gifts
 Invitation to exclusive Privilege Banking events and seminars
 Greetings on festivals
 Special Discounts at exclusive partner outlets

3.13.8 Air Lounge:


MTB offer Air Lounge services with a view to providing MTB customers with greater comfort
and convenience when travelling in and out of the country.

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Area of the Air Lounge - Approximately 2,000 square feet.
Seating Capacity - 28 persons.
Refreshment Type – Hot & cold snacks, breakfast, lunch, Dinner menu.
Catering service provider of the Air Lounge - The Westin, Dhaka.
General Amenities:
 Internet Service through Wi-Fi
 TV
 Newspaper/Magazine
 Separate Toilet for Male and Female Travelers
 Changing & Shower Facility for Male Traveler
 Flight Information Display
 Library for Travelers
 Free Local call facility
 Special facilities for MTB Card Holders or Privilege customers
 Endorsement facility
 Foreign part enable and disable facility
 E-Commerce enable facility

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CHAPTER-FOUR
GENERAL BANKING ACTIVITIES OF TRUST
BANK LIMITED

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4.1 General Banking:
Financial institution/ intermediary that mediates or stands between ultimate borrowers and
ultimate lenders is knows as banking financial institution. Banks perform this function in two
ways- taking deposits from various areas in different forms and lending that accumulated amount
of money to the potential investors 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. Everyday it
receives deposits from the customers and meets their demand for cash by honoring cheques. It
opens new accounts, demit funds, issue bank drafts and pay orders etc. since bank in confined to
provide the service everyday general banking is also known as retail banking.

4.2 General Banking of Mutual Trust Bank Limited:

General Banking consists of four different sections in this MTBL Laldighirpar Branch.
These are given below:
 Account Opening Section
 Remittance Section
 Clearing Section
 Cash Section

4.3 Account Opening Section:

Responsibility of the customer service starts with opening of new account in the name of new
customer. This is the starting point of the client bank relationship. By opening an account, the
bank bridge it’s customer to avail the facilities provided by the bank.

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4.3.1 Types of Accounts of MTBL:
Types of Account of MTB are given below:

 Savings Deposit Account.


 Current Deposit Account.
 Special Notice Deposit Account.
 Fixed Deposit Account.

Savings Deposit Account:

Savings Account meets all saving needs through monthly and flexible savings. An easy-to-
operate savings account that allows customers to issue cheques, draw Demand Drafts and
withdraw cash. Check up on your balances from the comfort of your home or office through
Internet Banking and SMS banking. Individuals for savings purposes open this type of account.
This deposit is primarily for small scale savers. Based on deposited amount Interest is given
here. Interest on this account is calculated and accrued monthly and credited to the account half
yearly.

Current Deposit Account:


A Current account is ideal for carrying out day-to-day business transactions. With the MTB
Regular Current Account, you can access your account anytime, anywhere, pay using payable at
par cheques or deposit cheque at any MTB bank branch. This type of account is opened by both
individuals and business concerns. Frequent transactions (deposits as well as withdrawal) are
allowed in this type of account. It is purely a demand deposit account.

Special Notice Deposit Account:

Any individual or corporate body can open Special Notice Deposit Account, which is an interest-
bearing deposit account, for a short period of time. However, 7 days of notice is required if the
customer wishes to withdraw money from this account. Interest rate on SND accounts will be
varied based on the amount and not on the customer or tenure. Interest is calculated based on
daily minimum product and paid two times in a year.

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Fixed Deposit Account:
Fixed deposit is one, which is repayable after the expiry of a predetermined period fixed by an
individual. These deposits are not repayable on demand but they are withdrawn able subject to a
period of notice but bank paid only principal amount not interest.
The following table shows the interest rates for fixed deposit of MTBL,

Period
Interest Rates

Below BDT 25 Lac BDT 25 Lac and BDT 5 Cr. And above
above to below BDT
5 Cr.

1 Month 5.00% 5.00% 5.00%

2 Months 5.50% 5.75% 6.00%

3 Months 8.00% 8.75% 9.00%

6 Months 8.00% 8.75% 9.00%

1 Year 8.50% 8.75% 9.10%

2 Years 8.00% 8.00% 8.00%

3 Years 8.00% 8.00% 8.00%

4.3.2 Account Opening:

To become the client of a bank a person needs to open an account. After opening of an account a
person becomes a client of a bank. It is a legal contract between the bank and the client. Through
this contract a client is ready to deposit any sum of money and purchasing the belief from the
bank. Therefore it means the bank is selling their belief and always ready to pay any sum of
deposited money of any client. An account opening form is the contractual document. It is the
legal document of Banker-Client relationship.

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Prerequisites for Opening an Account of a Person:

 Account Holder’s National ID/ MICR Passport.


 Account Holder’s 2 Copy Passport Size Photo and one (1) copy of Passport size color
photograph for the Debit card.
 Nominee’s National ID/ MICR Passport/ Birth Certificate.
 Nominee’s 3 Copy Passport Size Photo.
 Account Holder’s Specimen Signature.
 Minimum deposit TK. 500.
 Must be need an introducer who operates a account in MTB or a officer of the MTB will
be introducer of account holder.
 Optional Income Tax Certificate.
 Occupational Documents like Appointment Letter, Student ID Card etc.
Pre-requisites for Opening an Account of a Private Limited Company and other Business
entities:
 Trade License.
 Board resolution regarding opening of an account and mentioning it is authorized.
 Persons for operation of the same.
 Valid and up to date trade license.
 Memorandum and articles of association duly signed by the register of joint stock
company with seal.
 Certificate of incorporation.
 Tax Identification Number (TIN) and up to date tax clearance certificate.
 List of directors on the company’s letter head pad.
 Passport size 3 (Three) copies color photograph of all the directors.
 Introducing the account by a person/ company/ firm who is maintaining a current account
with this branch.
Procedures of Opening an Account:
Before opening an account, the following formalities need to be completed by a client:

 Apply on a prescribed form.

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 An acceptable introduction by an introducer which is acceptable by the bank is required
prior to opening of any account.
 Two copies of recent photograph of the account holders duly attested by the introducer
must be given while opening an account and one copy of recent photograph of the
account holder duly attested by the introducer to receive Debit card and taking the Debit
card is optional.
 In case of current Account the client has to give three specimen signatures in the
“Specimen Signature Card.”
 The minimum balance that has to be maintained in the current account is Tk. 2,000 and in
Saving Account is Tk. 1000.

4.3.3 Other Activities of Account opening Section:


 Issuing Cheque Book to the Client:

After the completion of above formalities, the bank provides the client a Deposit Book and a
cheque book. The cheque book can be of 10 or 25 pages. It will depend on the type of the
account. The 10 pages cheque book is issued to the saving account (A/C) holder and 25 pages
cheque book is issued to the Current A/C holder. The client has to fill up the Requisition Slip for
cheque book. Then the bank officer will take a new cheque book with filling up account number
of the client and the branch name in each page of the cheque book. The name and the account
number of the client are then registered in the “Cheque book issue register.” The serial number
of the cheque book is also entered in the computer for proper maintenance of records.

 Issue of Fresh Cheque Book:

Fresh cheque book is issued to the account holder only against requisition on the prescribed
requisition slip attached with the cheque book issued earlier, after proper verification of the
signature of the account holder personally by a bank officer or to account holders duly
authorized representative against proper acknowledgment.

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Banker Verifies the
Slip

Banker issue new cheque book if everything


is in the right form

Requisition Slip filled properly along with the


cheque book number

Enter new cheque book number in the Flora software against the
client name

 Issue of New Cheque Book (for old account):


All the procedure for issuing a new Cheque book for old account is same as the procedure of
new account. Only difference is that client have to submit the requisition slip of the old Cheque
book with date, signature and his/her address. Computer posting is then given to the requisition
slip to know the position of account and to know how many leaf/leaves still not used. The
number of new Cheque book is entered on the back of the old requisition slip and is signed by
the bank officer.
 Transfer of an Account:
The procedures of transferring an account are:
 The client submits an application mentioning the name of the branch to which he or she
wants the account to be transferred.
 His or her signature cards, advice of new account and all the relevant documents are sent
to that branch through registered post.
 The balance standing at credit in customers account is sent to the other branch through
Inter Branch Credit Advice (IBCA).
 No exchange should be charged on such transfer.
 Attention is also given in this connection.

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 Closing of an Account:
Upon the request from a client, an account can be closed. After receiving an application from the
client to close an account, the following procedure is followed by a banker:
 The client should be asked to draw the final cheque for the amount standing to the credit
of his or her a/c less the amount of closing and other incidental charges and surrender the
unused cheque leaves.
 Account holder a/c should be debited for the account closing charges etc. and an
authorized bank officer of the Bank should destroy unused cheque leaves.
 In case of joint a/c, the application for closing the a/c should be signed by all the joint
account holders.
A banker can also close the account of his or her client or stop the operation of the account under
following considerable circumstances:
 Death of the client.
 Order of the court (Garnishment order).
 Specific charge for fraud forgery.
 Application for Debit Card:
575 taka yearly charged for debit card. Account holder’s 1 copy passport size photo & specimen
signature in debit card application form. Then fill up the form- Name (as bank account), Name
on card, Account No., Mother’s Name, Spouse’ Name, Date of birth, Gender, Contact Address
(if the account is current deposit then contract address will be business address), Mobile number.

 MTB SMS Banking:


SMS alert for all bank transactions helps prevent fraud. Register for MTB SMS Banking and
remain worry fee. Yearly charge 300 Taka for SMS banking. Account holder need to request for
this service.
 Cheque book, Debit card & Pin Stock in MS Excel:
When branch receive cheque/ debit card/ pin. They input it to MS Excel by giving lot no. So they
can easily find it when customer comes to receive it.
 Cheque book/ Debit Card/ Pin Register Book:
When a customer comes to receive, at first the Officer entry it to register book & take customer’s
signature. Then he verify customer’s signature and deliver it to customer.

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4.4 Remittance Section:
Remittance of funds is ancillary services of MTBL. It aids to remit fund from one place to
another place on behalf of its customers as well as non- customers of Bank. MTBL has its
branches in the major cities of the country and therefore, it serves as one of the best mediums for
remittance of funds from one place to another.

4.4.1 Foreign Remittance:


In foreign Remittance desk people collects money that are sent by their relatives or others from
abroad. Mutual Trust Bank Ltd (MTBL) has made business contact with Ria, Western Union,
Trans-Fast, Money Gram etc. MTBL also has its own foreign exchange branch in England
named “MTBL UK Money Exchange” which helps Bangladeshi people living in England to
send their money safely to their relatives or to other people living in Bangladesh. The procedure
of collecting foreign remittance money from the bank is a very easy procedure which is a person
who wants to collect foreign remittance money needs to tell the banks foreign remittance officer
about the exchange company name and a unique transaction number then the officer will do the
procedure needed to collect the money.

4.4.2 Payment Order:


The pay order is an instrument issued by bank, instructing itself a certain amount of money
mentioned in the instrument taking amount of money and commission when it is presented in
bank. Only the branch of the bank that has issued it will make the payment of pay order.

 Issuing of Pay Order:


The procedures for issuing a Pay Order are as follows:
1. Deposit money by the customer along with application form.
2. Give necessary entry in the bills payable (Pay Order) register where payee’s name, date, PO
no. etc is mentioned.
3. Prepared the instrument.
4. After scrutinizing and approval of the instrument by the authority, it is delivered to customer.
Signature of customer is taken on the counterpart.

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4.4.3 Demand Draft:
DD Demand Draft A Demand Draft (DD) is an instrument containing an order by the issuing
branch upon another branch known as drawee branch, to pay a certain sum of money to the
payee. The person intending to remit the money through a Demand Draft (DD) has to deposit the
money to be remitted with the commission which the banker charges for its services. The amount
of commission depends on the amount to be remitted. On issue of the DD, the remitter does not
remain a party to the instrument: Drawer branch ii) Drawee branch iii) Payee. This is treated as
the current liability of the bank as the banker on the presentation of the instrument should pay the
money. The banker event on receiving instructions from the remitter cannot stop the payment of
the instrument.

Stop payment can be done in the following cases:

1. Loss of draft before endorsement: In this case, “Draft reported to be lost, payee’s endorsement
requires verification” is marked.
2. Loss of draft after endorsement: In this case, the branch first satisfies itself about the claimant
and the endorsement in his favor.

4.4.4 Bills Collection:


In modern days banking mechanism has become complex in terms of smooth transaction and
safety. Clients receive bills and pay his or her payment through their account in the bank. Here
Commercial banks play the duty of collecting bills on behalf of their clients.

 Types of Bills for Collection


OBC:
OBC means Outward Bills for Collection .OBC exists outside the local clearing house with
different branches of the same bank or with different banks. So normally there are two types of
OBC which are given below:
 OBC with different branches of other banks
 OBC with different branches of the same bank

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IBC:
When the banks collect bills as an agent of the collecting branch, the system is known as Inward
Bills for Collection (IBC). In this case the bills collecting branch or the bank will work for a
particular bank. The agent bank or bills collecting branch of a bank receives a forwarding letter
and the bills from the bank which the agent branch or the bank is working or collecting bills.

4.4.5 TT (Telex Transfer):


Telex transfer (TT) is another widely used mode for remittances of funds. In case of telex
transfer the message for transfer of funds is communicated through tested telex. MTB generally
recovers from the telex charges in addition to the usual service charges.

4.5 Clearing Section:


Clearing is a system by which a bank can collect its own client money from other banks through
clearing house.
Clearing House Process:
Every bank has an officer of clearinghouse who is work with Bangladesh Bank clearing house.
Actually most of major client deposit their account in different kinds of bank cheques. Clearing
officer check all the cheques and deposit slip very carefully and then he received the cheque.
After that the clearing officer posting all the cheques in computer software which is recognized
through Bangladesh bank computer department. Then clearing officer seal all the cheques in
advance date after that the officer endorsement all the cheques and sign all the cheques. All the
cheques are posted in the computer by branch wise, then officer print the entire document and
staple all the called cheques by branch wise this is schedule of clearing house. It is a very
difficult job to staple all the cheques, because some time’s the cheques are huge in quantity, it
may be 250 to 400, this is very vital job because every cheque must have to staple very carefully,
it means cheque amount and the print sheet amount and cheque branch must have to be same. If
the cheques staple in wrong direction, the cheque may be return from another branch that’s why
MTBL not to be able to credited party account. Then the clearinghouse officer is copying the
entire document in two floppy discs as per Bangladesh Bank requirement.

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 Types of Clearing Cheque:
There are two types of clearing. They are given below:

 Outward Clearing:
When the branch of a bank sends cheques of its clients drawn on the other Banks within the local
clearing zone for collection of money through Clearing House, it is Outward Clearing.

Laldighirpar Branch of Principal branch of a Specific branch of


MTBL specific bank that bank

Principal branch of Bangladesh Bank


MTBL (Clearing house)

 Inward Clearing:
When a bank receives cheque drawn on them from other banks in the Clearing House, it is
Inward Clearing.
Laldighirpar Branch of Principal branch of Specific branch of a
MTBL that specific bank bank

Principal branch of Bangladesh Bank


MTBL (Clearing house)

4.6 Accounts Section:


This is the most confidential department of a bank. Recording all kinds of transactions of the
branch, confirming their accuracy and preparing statements are the main job of this 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.
Like all other Banks, in MTBL Accounts Department is regarded as the nerve Center of the
bank. Improper recording of transactions will lead to the mismatch in the debit side and in the
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credit side. To avoid these mishaps, the bank provides a separate department whose function is to
check the mistakes in passing vouchers or wrong entries or fraud or forgery. This department is
called as Accounts Department.
The tasks of the Accounts Department may be seen in two different angles:
 Daily Tasks.
 Periodical Tasks

Daily Tasks:
The routine daily tasks of the Accounts Departments are as follows,
 Recording the daily transactions in the cashbook.
 Recording the daily transactions in general and subsidiary ledgers.
 Preparing the daily position of the branch comprising of deposit and cash.
 Preparing the daily Statement of Affairs showing all the assets and liability of the branch
as per General Ledger and Subsidiary Ledger separately
 Making payment of all the expenses of the Branch.
 Recording inters branch fund transfer and providing accounting treatment in this regard.
 Recording of the vouchers in the Voucher Register.

Periodical Tasks:
The routine periodical tasks performed by the department are as follows:
 Preparing the monthly salary statements for the employees.
 Publishing the basic data of the branch.
 Preparing the weekly position for the branch which is sent to the Head Office to maintain
Cash Reserve Requirement (C.R.R).
 Preparing the monthly position for the branch which is sent to the Head Office to
maintain Statutory Liquidity Requirement (C.R.R).
 Preparing the weekly position for the branch comprising of the break-up of sector-wise
deposit, credit etc.
 Preparing the weekly position for the branch comprising of the denomination wise
statement of cash in tills.

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4.7 Cash Section:
Cash is the key instrument of all financial transactions. The cash section plays a very significant
role. It is a very sensitive part of the bank because it deals with most liquid assets. This section of
MTBL (Laldighirpar Branch) receives cash from depositors and pays cash against cheque,
Demand Draft, Pay Order, and Pay-in-Slip over the counter. This section deals with all types of
negotiable instrument and it includes Vault, used as the store house of cash and instruments. The
cash officer begins transaction with taking money from the vault, known as “Operating Cash
Balance” and vault is kept in the most secured place. The amount of opening cash balance is
written into the register book. After the whole day’s transaction, the remaining money in the cash
counter is deposited back into the vault, known as the “closing balance”.
The main functions of this section are cash receipt and cash payment. These two functions are
given below:
Cash Payment:
 When a client comes to the bank to cash a cheque, he or she gives it to the cash counter.
 The cash officer receives the cheque and checks it very carefully.
 The cash officer checks the date of the cheque, name, account number of the cheque,
amount in word and in figure and also verifies the signature through computer.
 If the instrument is free of all kinds of errors then the respected officer will ask the
cheque bearer to sign on the back side of the cheque.
 He or she will then put his or her initial beside the bearer’s signature.
 There must be two signatures in the cash payment cheque. If it is a big amount then the
cheque must be verified in front of the cash officer.
The cash officer maintains a sheet. After receiving every payment he fills up the sheet in
following particulars: Serial Number, Account Number, Amount and Initial.
After giving the payment the Cash Officer fill up the following particulars: Serial Number,
Account Number, Cheque Number, Amount and Initial.

Cash Receipt
 At first depositor fills up the deposit amount in the depositor slip.
 After filling the required deposit amount in slip, depositor deposits the money.

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 Officer of the cash counter receives the money, counts it, enters the amount of money in
the scroll register, put a seal in the deposit slip and sign on the slip with the date.
 Then this deposit slip is passed to another officer for double checking.
 When the checking is completed then the cash officer keeps the banks part of the slip and
the other part of the depositor slip is given to the depositor.
 The cash in charge gives posting with the help of a computer from the deposit slips to the
clients accounts and write a transaction number.

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CHAPTER: FIVE

GENERAL DESCRIPTION OF THE TASKS


COMPLETED DURING INTERNSHIP PERIOD

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5.1General Task Completed During Internship Program
5.1.1 Account Opening Department:

I worked at Mutual Trust Bank, Laldighirpar Branch where firstly I have started with the account
opening department. Here I have learned the procedures of opening an account and the
documents that are needed for opening an accounts & types of account dealt by mutual trust
bank. The following activities which had done by me-

 Giving customers the information what types of documents will be required to open an
account.
 Correction of uncompleted forms, which have been detected by internal audit. My job
was to s complete that information from attached required certificates or copies.
 Fill up “know your customer (KYC)” for customer’s details.
 Making phone calls and collecting necessary photographs, photocopy of NID and trade
license or any other inquiries.

Giving the information to customer’s about the profit rate of FDR, DPS as they wants.

5.1.2 Accounts Department:

Accounts Department is sensitive part of a Bank. Sometimes I visited the department and I
observed and learned how officer’s gives or receives cash, cheques, and also they examines
whether the cheque or cash are real or forged. In this department all the task and transaction are
maintained properly.

 Voucher sorting, counting the number of accounts by checking, has been debited or
credited.
 Stamping various kinds of documents with authorization and endorsement seal.
 Filling the cash slip, form of foreign remittance, which comes from various exchange.

5.1.3 Issuing Pay Order Slip:

I have made pay order for customers who would like to transfer their money to another bank or
any other purposes. For issuing pay order I had to do the following,

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1. At first I have to write necessary entry in the bills payable (Pay Order) register where
payee’s name, date, PO no. etc is mentioned.
2. Then I give it to the officer of the Remittance section for approval of the authority
3. Finally I give it to the customer by taking Signature of him on the counterpart.

5.1.4 Delivering Cheque Book:


After the completion of above formalities, the bank provides the client a cheque Book. The
cheque book can be of 10, 25, 50 and 100 pages. It will depend on the client’s demand. When a
customer comes for the Cheque book I had to do the following,
 At first I have to find the Cheque book requisition slip from the Cheque book requisition
file.
 Then I need to take “Cheque book issue register” and put the Cheque book requisition
form to the “Cheque book issue register”.
 The name and the account number of the client are then registered in the “Cheque book
issue register”.
 The serial number of the cheque book is also entered in the “Cheque book issue register”.
 Finally I give the Cheque book to the customer by taking a signature in the “Cheque book
issue register”.

5.1.5 Balance Check:


Client often request to check their balance, for that clients need to provide their account number.
Through their account number I inform them about their amount. Sometimes suspected persons
are asked to give their signature and bank authorities are assured after verifying the signature and
photo of that client.

5.1.6 Customer Assistance:

Providing customer assistance was one of my top priorities in the bank. This was applicable in
helping out clients, filling up forms, photocopying essential documents then issuing of cheque
books and others.

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5.2 Other Activities:
 I scanned some important papers of the bank.
 I sent the documents by e-mail to other branches.
 I sent the requisition slip to the main branch.

5.3 Observations:

It was both very challenging and interesting experience for me working at The Mutual Trust
Bank Ltd (Laldighirpar Branch). I have noticed and observed the following things while working
at the bank.

 Work is never left pending for the next day unless it is absolutely necessary.
 The working of the bank employees can be made faster with the help of better operating
system.
 A good job performance is always praised which motivates the employees.
 There was always a rush of clients inside the branch so the number of Transactions was
high. Thereby, the employees remain very busy throughout the day.
 The working activities are always set and divided to each of the employees. Each and
every employee has a certain set of responsibilities. Moreover, I often saw everyone
working in the bank helps each other out while doing their daily work inside the bank.
 Patience is a must while dealing with any client because it is my duty to answer every
query of clients.
 Multi tasking is necessary in order to be more proactive.
 Learned to maintain professionalism and being logical and calm in difficult situations.

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CHAPTER: SIX

APPLICATION OF KNOWLEDGE GAINED


DURING BBA PROGRAM TO ACCOMPLISH
EACH TASK

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6.1 Application of Knowledge Gained During BBA Program to Accomplish
Each Task:

I am a student of Bachelor of Business Administration (BBA). This program contains 12 terms


including internship. 1st to 11th terms deal with educational activities, and 12th term requires
internship.

As a business student, I learned many things from my BBA program; gained a variety of
knowledge through the class lectures, text books, assignment, presentation, viva, exams etc.
While conducting my internship in MTBL. Some of this knowledge was very helpful which I
applied in my internship. During my internship I found this knowledge is very essential for
practical professional life.

The first thing that I learned from BBA program and used in my internship is Double Entry
system. We know, in the double-entry accounting system, each accounting entry records related
pairs of financial transactions for asset, liability, income, expense, or capital accounts. Recording
of a debit amount to one account and an equal credit amount to another account results in total
debits being equal to total credits. Almost all the institutions maintain their accounts by using
this concept. I knew about it from text book, class lecture. But I practically applied it during my
internship in MTBL.

Principles of Accounting

I was familiar with journal, ledger, and cash flow statement through the course ‘Principles of
Accounting’. This course gave me the idea about recording, summarizing etc. I exercised these
in my internship. The course provides me the basic idea about journal, ledger, cash flow
statement; and internship demonstrate how to use of these in an organization.

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Organizational Behavior

A course named ‘Organizational Behavior’ was included in the syllabus of BBA program.
Organizational behavior is a field of study that investigates the impact that individuals, groups
and structures have on behavior within an organization. This course played a vital role on my
internship. This course taught me how to behave formally within an organization, how to act
react, how to express the feelings in an organization etc.

Banking and Insurance

The most useful knowledge which I gained from BBA program and used in my internship is the
knowledge of banking sector. According to US Federal Government – “A Bank is any business
offering deposits subject to withdrawal on demand (such as by writing a cheque or by electronic
transfer) and making loans of a commercial of business nature (such as granting credit to any
type/sort of private business or to any government). I have learned many important things about
banking sector from the course “Banking and Insurance”. In this course I learned about types
of bank, functions of bank, role of bank in developing economy etc. I learned about the functions
performed by a bank. And when I conducted my internship, I had to perform these tasks. In that
case I performed the tasks more fluently because I already had the idea about my tasks, which I
gained from BBA program.

The course “Banking and Insurance” provided me the idea about types of loan such as short-
term loan, medium and long-term loan, etc. I saw the dealing with loan in MTBL. I also learned
about a very important thing from BBA Program, and applied in MTBL during my internship,
Cheque is an order of payment by the account holder to pay money from his account towards the
bank. I also learned the features and types of cheque, which was very essential information for
me, as an intern, I learned the apparent tenors of a cheque which are date, sum payable (both in
figure and word), signature and payee. I applied this knowledge in MTBL while conducting my
internship.

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Principles of Marketing

In the BBA Program, I completed two courses named “Principles of Marketing” &
“Marketing Management”. These two courses taught me how to behave with customer or
client that I performed in my internship. I provided necessary information to the customer or
client according to their query via phone.

Cost Accounting and Intermediate Accounting

I learnt after studying principles of accounting that how to prepare journal, ledger, balance sheet
and income statement etc. Double entry system is the only scientific and reliable for maintaining
accounts. But single-entry system is not complete and accounts are not maintained properly. I
noticed that the bank also follows double entry system for accurate and proper accounts. I didn’t
ask the supervisor during banking hour that what are journal, ledger, balance sheet and income
statement. But new employee of the bank was in trouble about accounting related contents.
Because various background employee was in the bank. Debit and Credit system is familiar for
me and it was so easy how to debit and credit. Cost accounting course is designed to give
knowledge about the overall cost recording, cost summarizing and cost reporting process. During
my internship I noticed that how the bank control cost and reduce cost of production. I was
familiar with cost control and cost reduction techniques so that I didn’t feel any trouble in bank.

Business Law

Every business has to follow some rules and regulations by the government. I noticed that
Bangladesh banks suggested and imposed some laws for all the private commercial banks and
MTBL is also follows Bangladesh Banks laws. If there is no law for banks then banks will
involve with illegal activities and crimes. Before my internship I knew that all institution has
some laws because I studied about Business Law. From business law course I learnt about law of
negotiable instrument.

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Management Information & Control System

This subject helped very much because when I studied this course I learnt about organization,
management and technology. When I was in the bank I easily recognized what are management
and technology and organization. I also learnt about how to manage hardware and software
assets. All works in a bank are done by computer and they use various kinds of software. It was
very easy for me to operate computer and software. Telecommunication is very essential for a
bank and I had knowledge about telecommunication after studying this subject. I observed that
MTBL uses telecommunication system for daily operation. Without internet it is not possible to
provide internet banking to its customers. I studied about the internet and the new information
technology infrastructure so I did not face any problem during my internship period. I also have
studied many other subjects which also helped me to accomplish each task during internship.

Business Environment

The word “Environment” refers to the aspects of surroundings. Therefore, Business Environment
may be defined as a set of conditions – Social, Legal, Economical, Political or Institutional that
are uncontrollable in nature and affects the functioning of organization. When we studied this
subject, I learnt about Technological environment, Political environment, Social-Cultural and
Global environment etc.

Business Communication

Business communication is very important for business; it helps how to communicate with
others. If anyone works in an organization, they must respect the formal channels of
communication. This does not mean that there should be no informal communication. All
decisions come from head office and only manager has the power to control the branch. We
learnt when studied business communication that how to work in a group. In group working I
realized that I dealt with various levels of officers and helped them when needed. It’s really hard
to deal it senior and junior level officers because we need to know that how to communicate with
them. But it was pretty good for me, I knew from business communication course how to
communicate. Body language is also another essential factor in an organization. I didn’t show
any of my bad behavior, only tried to show positive body language. We got knowledge from this

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course about body language in an organization. Business communication course helped me
during my internship vastly.

Introduction to Computer Application

A computer is an electronic tool that can be programmed to do any function. That means it can
be instructed to do whatever we want it to do. Banks hold records of millions of customers.
Every day transaction and customer queries etc. are done using computer. Daily, weekly,
monthly and yearly balance sheets are made by computer. From this subject we learnt about the
computer and how to operate different types of applications. Without computer operating skill
it’s not easy to perform very well in any business organization. I was introduced in my computer
classes with the following things-

 Basic concept & background of computer.


 Input device.
 Output device.
 Operating system.
 Application program.
 Computer network & internet etc.

When I worked in the bank it was extremely easy for me to do anything using computer.
Everywhere in this word all business oriented organizations are computerized. Without computer
education even, I will not be able to get a job. I am familiar with computer and its operating
system and others. So, I didn’t have any problem when I worked with computer.

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CHAPTER: SEVEN

FINDINGS, RECOMMENDATION &


CONCLUSION

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7.1 Findings:
After this part, I think this is the most vital part for every bank in Bangladesh or any other
country. Mutual Trust Bank Limited is a private commercial bank. This is most probably
consumer base bank. After analyzing my work and observation I found following points:

 Normally any person can purchase pay order, demand draft and telex transfer by
depositing money and commission. But the person who wants to purchase these should
have account in the bank branch. These will discourage customers to transact with bank.
 The degree of relationship between banker and customer determines how much theory is
deviated from practical work.
 They have not sufficient efficient employees to operate different department in the bank.
 In another dimension where the customers showed higher dissatisfactory was the time
dimension that they have to wait to get their work done.
 Higher authority doesn’t allow branches to sanction a certain limit of loan amount.
 Promotional policies of MTBL are not updated enough to catch customer’s attention.
 Sitting arrangement and working facilities for the Intern is not good enough. As a result
the Intern can’t have the opportunity to contribute more to the banking activities of
MTBL.
 Complaint management system is not so good.
 Customers are not so much aware about different products.
 There is really lack of indicators of Mutual Trust Bank limited in different places.
 Online banking facilities are not at the satisfactory level compare to other banks.
 Workshop and training for the bank employees are not much arranged by the top level
management.
 When a client try to may an Account he must have to need an introducer, sometimes it
may create a problem for the clients.
 This department plays a vital role in the Management Information System. Management
collects different types of information from this department.

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7.2 Recommendations:

After completing my internship in Mutual Trust Bank Ltd I realized that MTBL is very much
organized and always focused to provide its best service to its clients. Nevertheless, the bank still
has some minor problems on which MTBL management needs to take appropriate steps to solve
them and in future it will help them to become one of the leading banks of the country.
Otherwise, these may cause huge loss or create a barrier for the future prospect. I hope that these
recommendations would be helpful for the Mutual Trust Bank Ltd. These recommendations are
given below:

 Higher authority of the bank should allow branches of the bank to sanction a certain limit
of loan amount to the clients.
 In the last few years bank constantly achieved a very good profit margin but it is not
enough compare to other banks. So the bank needs to increase their profit to be in the
competition.
 MTBL needs to increase their advertisement and social activities to build- up a brand
image of the bank.
 MTBL management should always motivate their employees so that employees get
motivated and work harder.
 Communication skills of the bank officials need to be improved so that employees can
communicate more effectively with the clients to satisfy them.
 MTBL has a very strong capital back up so the management of the bank should be more
careful in terms of the proper utilization of the bank’s capital.
 MTBL needs to minimize their unnecessary office expenses to earn more profit.
 MTBL offers several deposit schemes and financial products for the clients but they
should concentrate more on the quality of the products rather than the quantity of
products.
 MTBL is expanding their businesses but they should open more branches in the remote
areas of the country so that maximum number of people can come under their services.
 More workshop and training classes should be arranged by the bank authority so that
bank employees can have the opportunity to improve their skills.
 MTBL should improve their online services to make banking easier for their clients.
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 The authority should recruit more employees to serve the clients. They can recruit
experienced employees as well as fresh graduates.
 They should take an initiative to improve their expertise in the investment businesses to
be more prompt.
 The Mutual Trust Bank Ltd. can offer different deposit schemes for college and
university students.
 MTBL should include more differentiate product in their consumer product like Foreign
currency Deposit, account, Resident Foreign Currency Account etc.
 Customers are not so much aware about different products. MTBL should be concern
about it.
 Mutual Trust Bank Ltd. should renovate its Front Desk as it remains extremely busy the
whole time and GB is the base for any bank. More staffs need in front desk to attend the
customers.
 To maintain the bank reputation and image in the Banking sector as well as to the general
people, Mutual Trust Bank Ltd (MTBL) should involve precisely in mobilization and
utilization of local resources like – investing in N.G.O activities, educational, health
service expansion activities and poverty elevation etc.
 Complaint management system is not so good. Though there is a complaint box in the
branch, customers are unaware about the procedure. So the officials should make clear
this procedure to the customers so that they can write about the problems they are facing
in this branch.
 Cash counter should be more systemic because it’s a question about of security.
 It is noted that “Delay in service” is one of the problems faced by the clients.
Attempts should be made to straighten the banking procedure.
 MTBL should include more differentiate product in their customer credit scheme like
teacher loan , student loan, doctor credit scheme, personal loan for woman etc.
 Verification process needs to improve because customers do not want to disclose
confidential information to unknown person.
 Head office and branch communication gap should be minimized.

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 Loan facility should be increased. The credit policy of the bank is very restrictive and
defensive. As a result its loan sanction procedure is somewhat complex. The loan policy
and loan sanction procedure should be made more flexible and easy.
 Mutual Trust Bank Ltd. 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.
 Mutual Trust Ltd. should offer international credit card, because in modern world the use
of increasing paper currencies is decreasing.
 There is really lack of indicators of Mutual Trust Bank limited in different places. In
particular, Laldighirpar branch can set up the indicators symbolizing the MTBL slogan
and logo at different locations so that people get to know more about this branch.
 Digital indicators can be set up inside the branch so that the customers do not get
confused when they need to move from one section to another section. This will also
enhance the branch premise more professional.

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7.3 Conclusion:
Banking systems is becoming more & more vital for economic development of Bangladesh in
mobilizing capital & other resources. Mutual Trust Bank, being a third generation bank, is also
extending such contributions as to the advancement of the socio-economic condition of the
country. MTBL is much more structured compared to any other banks operating in Bangladesh.
Especially, in retail and SME banking, the bank is showing in excellent performance. The banks
aim to be the first in retail banking within few years.

During my internship program I was assigned to work in general banking section where I have to
go through different steps related to the Banks Deposit Schemes and Operations. Here I felt that,
though banking is constantly changing and being equally challenging, Mutual Trust Banks major
concentration is always on quality service not on quantity. Customer focus is their priority not
volume of the business. According to me this concept of Mutual Trust Bank has differentiated it
from its competitors.

With a bulk of qualified and experienced human resource, Mutual Trust Bank Limited can
exploit any opportunity in the banking sector. The management of the bank is working
continuously to make their mission a realizable one. During the three months internship program,
I have attempted to analysis the General Banking System of MTBL. In this short time I have
known about the General banking system of this bank. This General banking system has several
policies and procedures that comply with Bangladesh Bank’s rules and regulation and consistent
with the banking activities.

In overall, these systems help Mutual Trust Bank Limited to continuously achieve its goals and
objectives properly. So Mutual Trust Bank and its contribution to the economy of Bangladesh
along with high level of corporate social responsibility are providing it a way to move forward in
faster than other banks in the country.

A severe cut throat competition is going on currently in this sector and that’s why Mutual Trust
Bank Ltd. has to work out with different dimensions like – product diversification, market
forecasting, proactive activities etc.

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Bibliography

Book References:
Hoque, Mohammad Shahidul and Rahman, Md. Zillur, (2017, 7th September) “Banking &
Insurance”.(2nd ed). H&C Publication.
Lawrence. J Gitman (2003) “Principles of Managerial Finance” (3rd ed). Pearson.
Peter S. Rose and Sylvia C. Hudgins. Bank Management & Financial Services (6thed.).
R.M. Debnath ‘Business of Banking’ (2nd Edition).
Sundharam, K.P.M, “Banking Theory, Law & Practice” 16th edition.
Publications and Reports:
1. Annual reports of MTB from 2015-2017.
2. Management Report of Mutual Trust Bank Ltd.2016.
3. Director’s Report of MTB 2016.
4. Un-Audited Financial Statements 3rd quarter 2017.
5. Booklets of the bank.
6. Mutual Trust Bank Limited’s leaflets and operations manual.
Website References:
1. http://www.mutualtrustbank.com
2. https://en.wikipedia.org
3. http://www.assignmentpoint.com
4. https://www.britannica.com/topic/bank
5. https://www.bb.org.bd/fnansys/bankfi.php
6. https://stockbangladesh.com/dse/stock/mtb/mutual-trust-bank-ltd/fundamental/details
7. http://www.banksbd.org/mtbl/
8. https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=20356960
9. http://www.assignmentpoint.com
10. http://bankinfobd.com/banks/28/Mutual_Trust_Bank
11. https://issuu.com/rose1990/docs/history_of_the_banking_industry
12. https://www.scribd.comInternship-Report-of-Mutual-Trust-Bank-Ltd
13. http://www.academia.edu
14. http://www.reportbd.com/articles/1618/1/-History-of-Banking-in-Bangladesh-Part-

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Acronyms

MTB Mutual Trust Bank

CCS Consumer Credit Scheme

L/C Letter of Credit

BOI Board of Investment

TIN Taxpayers Identification No.

SME Small & Medium Enterprise

OBC Outward Bills for Collection

DD Demand Draft

TT Telex Transfer

FDR Fixed Deposit Rate

SOD Secured Overdraft

SND Special Notice Deposit

AGM Annual General Meeting

PCBs Private Commercial Banks

BB Bangladesh Bank

SEC Security Exchange Commission

NCBs Nationalized Commercial Banks

ATM Automated Teller Machines

ACR Annual Confidential Report

GB General Banking

CIB Credit Information Bureau

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