An Analysis of Credit Risk Management of

Mutual Trust Bank Limited

Submitted to:
Shahana Kabir
Assistant Professor
Department of Business Administration
Faculty of Business and Entrepreneurship
Daffodil International University

Submitted by:
Sadik Hossen
ID# 171-11-5499
Department of Business Administration
Faculty of Business and Entrepreneurship
Daffodil International University

Date of Submission: 18/08/2021

 Letter of Transmittal

Date: 18/08/2021

To,
Shahana Kabir
Assistant Professor
Faculty of Business and Entrepreneurship
Daffodil International University

Subject: Submission of Internship Report.

Dear Ma’am,
With respect, I am submitting my internship report on the topic "Analysis of Credit Risk
Management at Mutual Trust Bank Limited," which was assigned to me as a partial precondition
for completion of my BBA degree.

I tried to include as much information and associated difficulties as feasible in my report while
also following your directions.

As a result, I hope you will acknowledge my efforts, and I would be delighted if my report is
accepted for the intended purpose.

Sincerely Yours,

Sadik Hossen
ID# 171-11-5499
BBA Program
Department of Business Administration
Faculty of Business & Entrepreneurship

i
 Letter of Acceptance

This is to certify that a student of Daffodil International University named Md. Sadik Hossen ID#
171-11-5499 completed his internship report titled "An Analysis of Credit Management of Mutual
Trust Bank Limited under my supervision. In terms of content and analysis, this internship report
appears to be realistic. As a consequence, it is acceptable for presentation at the internship defense.

I wish him every success in life.

Shahana Kabir
Assistant Professor
Department of Business Administration
Faculty of Business and Entrepreneurship
Daffodil International University

i
 Acknowledgement
My name is Md. Sadik Hossen, and I'd want to thank everyone who helped me to finish my
internship report, "An Analysis of Credit Risk Management at Mutual Trust Bank Limited." from
begin, I'd want to offer my appreciation to Allah, whose kind direction enabled me to finish this
assistant study.

I'd like to thank my academic supervisor, Shahana Kabir, Assistant Professor at Daffodil
International University, for connecting me with all of the partners I needed to finish my report. It
was difficult for me to complete my report without her supervision.

Second, I am thankful to Rasha Anjum Rodoshi, Md.Harunur Rashid, Kamrul Sazib, and
Ariful Islam for their invaluable assistance. I'd like to express my gratitude to my parents, whose
inspiration helped me finish this article.

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 Executive Summary

Mutual Trust Bank Limited is one of several private banks that is following all of the requirements
imposed by Bangladesh Bank. The whole bank is divided into several sub-committees, each of
which distributes the job into distinct parts. They have Directors at the top, and then other
committees such as the Credit Committee, Finance Committee, and so on. Along with the board,
there is a CEO/Managing Director who has focused all work and maintained harmony in all areas
for the bank's improvement and efficiency.

The goal of this report is to learn more about Mutual Trust Bank Ltd's credit branch. To create this
report, both necessary and optional data sources have been used.

The primary section of this report consists of an introductory section that was prepared to ensure
the proper execution of the entire report. The next section depicts the company profile, which
includes Mutual Trust Bank's set of experiences, vision, purpose, and methodology, products and
administrations, and operational organization organogram. Section three focuses on Mutual Trust
Bank Limited's credit branch. This is the most important part of the job. It includes Mutual Trust
Bank Limited's credit strategy, credit criteria, and FICO score. The bank is inefficient in generating
profit from its assets and owner equity and the percentage of ROA and ROE are very low compared
to industry average. The bad loan of Mutual Trust Bank Limited also increasing year by year. In
2019 was much more than other four years. The capital adequacy ratio of MTB is lower than the
industry Average which is not safe for the bank. The cost to income Ratio is increasing
continuously after 2018 which is not good sign for the bank

The last part includes recommendations and conclusions. Suggestions can be given to overcome
the problems of Mutual Trust Bank Limited. In a general sense, this study finds a very promising
and positive tone of credit risk management for Mutual Trust Bank Limited.

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Table of Contents
Letter of Transmittal ...................................................................................................................................... i
Letter of Acceptance ...................................................................................................................................... i
Acknowledgement ........................................................................................................................................ ii
Executive Summary ..................................................................................................................................... iii
Chapter-1 ...................................................................................................................................................... 1
1.1 Introduction ............................................................................................................................................. 2
1.2 Origin of The Study ................................................................................................................................ 2
1.3 Objectives of The Study.......................................................................................................................... 2
1.4 Methodology of the Study ...................................................................................................................... 2
1.4.1 Primary Sources: .............................................................................................................................. 3
1.4.2 Secondary Sources: .......................................................................................................................... 3
1.5 Scop of the Study .................................................................................................................................... 3
1.6 Limitation of the Study ........................................................................................................................... 3
Chapter 2 ..................................................................................................................................................... 4
2.1 About Mutual Trust Bank Limited.......................................................................................................... 5
2.2 Corporate Profile of Mutual Trust Bank: ................................................................................................ 5
2.3 Vision of Mutual Trust Bank Limited..................................................................................................... 5
2.4 Mission of Mutual Trust Bank Limited. ................................................................................................. 6
2.5 Products and services of Mutual Trust Bank Limited ............................................................................. 7
2.6 Types of loan of what are offered by MUTUAL TRUST BANK LIMITED ......................................... 8
2.7 Management Hierarchy of Mutual Trust Bank Limited ......................................................................... 9
Chapter 3 ................................................................................................................................................... 11
3.1 Credit .................................................................................................................................................... 12
3.2 Type of Credit ....................................................................................................................................... 12
3.3 Objectives of Credit Risk Management ................................................................................................ 12
3.4 Definition of Credit Risk Grading ........................................................................................................ 13
3.5 Credit Assessment & Risk Grading ...................................................................................................... 13
3.6 Process of Credit Risk Management ..................................................................................................... 14
3.7 Credit Processing .................................................................................................................................. 14
3.9 Credit approval...................................................................................................................................... 15
Chapter 4 ................................................................................................................................................... 16

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4.1 Credit Risk Management System of Mutual Trust Bank Limited (MTB) ............................................ 17
4.2 Credit policy of MTB............................................................................................................................ 17
4.3 Credit Sanctioning Authority of MTB ................................................................................................... 17
4.4 Credit Facilities of Mutual Trust Bank Limited.................................................................................... 18
4.5 Lending Criteria of Mutual Trust Bank Limited ................................................................................... 19
4.5.1Technical Viability.......................................................................................................................... 19
4.5.2 Commercial viability ..................................................................................................................... 19
4.5.3 Financial Viability ......................................................................................................................... 19
4.5.4 Economic Viability .......................................................................................................................... 19
4.6 Credit Evaluation Principles .................................................................................................................. 20
4.7 Different Types of Credit Facilities by MTB:....................................................................................... 21
4.8 How Mutual Trust Bank recover their Loan: ........................................................................................ 23
4.9 Overall Procedure for Sanctioning Loan .............................................................................................. 23
4.10 Five C’s of Analysis Credit ................................................................................................................... 25
Chapter-5 .................................................................................................................................................... 27
Analysis ....................................................................................................................................................... 27
5.1 Loan and Advance: ................................................................................................................................ 28
5.2 Loan to Deposit Ratio: ........................................................................................................................... 29
5.3 Standard Loan/Performing Loan ........................................................................................................... 30
5.4 Sub-standard Loan/ Non- Performing Loan .......................................................................................... 31
5.5 Doubtful Loan ....................................................................................................................................... 32
5.6 Bad/Loss Loan ....................................................................................................................................... 33
5.7 Capital Adequacy Ratio – CAR ............................................................................................................ 34
5.8 Cost to Income Ratio ............................................................................................................................ 35
5.9 Return on Asset (ROA) ......................................................................................................................... 36
5.10 Return on Equity (ROE) ..................................................................................................................... 37
Chapter 5 ..................................................................................................................................................... 38
5.1 Findings of the Study ............................................................................................................................ 39
5.2 Recommendation .................................................................................................................................. 40
5.3 Conclusion ............................................................................................................................................ 41
References ................................................................................................................................................... 42

v
Chapter-1
Introduction

1
1.1 Introduction
As a BBA student, I will be required to write an internship paper. My internship program at
National Credit and Commerce Bank Limited's Mirpur Road branch was in the accounting and
finance department. As a major finance student, the bank authority offered me the topic "An
Analysis of Credit Risk Management of Mutual Trust Bank Limited" for my thesis. My operational
supervisor, Mrs. Rasha Anjum Rodoshi (Executive Officer of Mutual Trust Bank Limited), and
my administrative supervisor, Shahana Kabir, Assistant Professor, Daffodil International, both
approved this topic. Because credit is an issue for many financial institutions, I have endeavored
to describe all of the specifics of MTBL Bank's credit management system in this post. I went over
five years' worth of financial statements and discussed Mutual Trust Bank's financial situation with
the officers. I've also made numerous suggestions to improve their credit management system by
using contemporary technology techniques.

1.2 Origin of The Study

This report is prepared in order to acquire a Bachelor of Business Administration (BBA) degree
from Daffodil International University, and the writer aspires to intern in Credit Risk Management
at Mutual Bank Limited.

1.3 Objectives of The Study

The primary objective of this report is to get an overview about credit risk Management of Mutual
Trust Bank Limited.
Specific Objectives:
The other objectives of this study are as follows:
1. To assess the lending and recovery procedure of MTBL. for the period of 2015-2019
2. To analyze the trend of loan and advances of MTBL.
3. To analyze the non-performing loan & advances of MTBL.
4. To compare Credit to Deposit Ratio, , Return on Asset, Return on Equity of MTBL.
5. To suggest better ways for enhancing the credit performance of the Bank.

1.4 Methodology of the Study

This study was created utilizing both primary and secondary data sources. The following are the
data sources' specifics:

2
1.4.1 Primary Sources:
i. Direct conversation with respective officers and staffs.
ii. Confrontation Clients in Interview.
iii. Direct & Practical desk task.
1.4.2 Secondary Sources:
i. Data from Annual Report of MTBL.
ii. Data from the Monthly transaction record of this bank.
iii. Ratio data collected from the Banks financial statement.
iv. And the main sources of data from the Official Website of MTBL.
To make the study more interesting, helpful, and acceptable, all gathered data and related
information were tabulated, processed, analyzed, and graphically shown.

1.5 Scop of the Study

The research focuses on the financial management, corporate structure, credit offices, and credit
risk of Mutual Trust Bank Limited's board of directors. This is a internship paper on the executives
of Mutual Trust Bank Limited and a loan risk.

1.6 Limitation of the Study

Working with Mutual Trust Bank is a fantastic opportunity. However, owing to organizational
regulations, I was unable to collect all of the necessary data for the report. The following were the
restrictions I discovered:

3
 Chapter 2
Overview of Mutual Trust Bank Limited

4
2.1 About Mutual Trust Bank Limited
Mutual Trust Bank Limited is Bangladesh's first non-open part bank, offering a comprehensive
range of Personal, Corporate, International Trade, Foreign Exchange, Lease Finance, and Capital
Market Services. Mutual Trust Bank Limited is the preferred choice in saving money for amazing
and customized administrations, cutting edge innovation, tailored solutions for business demands,
global reach in change and trade, and reasonable yield on speculations, ensuring Excellence in
Banking Services.
Mutual Trust Bank is now one of the fastest developing full fully fledged business banks in
Bangladesh, with both local and global institutional investors. It began operations in 1999 and has
since been one of the fastest developing money related organizations in our country.

2.2 History of MTBL

On September 29, 1999, the Company was registered as a Public Limited Company under the
Companies Act 1994, with an Authorized Share Capital of BDT 1,000,000,000 divided into
10,000,000 standard offers of BDT a hundred each. At the moment, the business venture's
authorized share capital is BDT 10,000,000,000, which is divided into 1,000,000,000 ordinary
offers of BDT 10 each.
The Company was once awarded a Certificate for the Commencement of Business around the
same time and was once granted permission on October 5, 1999 by Bangladesh Bank under the
Banking Companies Act 1991 and began its keeping money task on October 24, 1999.

2.3 Objectives of MTBL

The Mutual Trust Bank Limited's goal is explicit and focused on being creative and perceptive,
as well as working itself into the general public's thinking as a manage an account with contrast'.
The following are the Mutual Trust Bank Limited's objectives:
 To amass reserve money and channel them as credit or upgrade as the association's
assistance.
 To build up, keep up, expand on, execute, and try a wide range of speculation and
financial company, for example, guaranteeing, monitoring, and dispersing the
inconvenience of stocks, debentures, and various securities.
 To fund the worldwide trade in both imports and exports.

5
  To expand the foreign exchange business, such as purchasing and advertising foreign
currency, issuing vacationers cheques, issuing worldwide credit score cards, and so on.
 To increase the limited profits team's chosen way of life by providing Consumer Credit.
 To fund the industry, change, and commerce both traditionally and by providing a buyer-
friendly deposit service.
 To encourage new entrepreneurs to invest and, as a result, to strengthen the country's
business sector and contribute to monetary development.

2.4 Core Values.

Commitment:
 Shareholders — Create long-term monetary value for our shareholders by employing a
simple and environmentally friendly business technique.
 Community - Committed to serving society by creating jobs, assisting community projects
and activities, and being an accountable corporate citizen.
 Clients — Provide modern-day provider to our customers by means of providing a variety
of goods and aiming to satisfy their banking desires to the best of our abilities.
 Employees – We rely on the inherent merits of the employee and value our relationship as
a component of this well-known economic institution. We collaborate to recognize and
reward diverse origins, perspectives, competences, and abilities of all employees,
regardless of job title.
Accountability:
 As a bank, we are made a choice about only by the productive execution of our
obligations; we anticipate and comprehend this structure of judgment. We are in
charge of providing the least demanding dimension of administration while
adhering to the stringent requirements of administrative models and excellent
business practices.
Agility:
 We can see things from new perspectives; we are willing to exchange ideas; and
we are unsure of how we have solved problems in the past. We can respond fast
and alter our style of operation to fit the needs of our partners while also achieving
our goals.

6
Trust:
 We value mutual trust, which includes visible and real-life interactions among all
groups.

2.5 Products and services of Mutual Trust Bank Limited

The financial institution provides a diverse product line to meet the needs of the strata. In addition
to conference products, the bank offers special savings items to its customers in both asset and
liability aspects. They are as follows:

7
2.6 Hierarchy of Position Structure of MTBL
Mutual Trust Bank Ltd.
Organization Hierarchy

Executive Vice President

Senior Vice President

Vice President

Senior Asstt. Vice President

Assistant Vice President

First Asstt. Vice President

Junior Asstt. Vice President

Senior Officer

Officer/ Trainee Officer

Junior Officer

Asstt. Officer

Driver/ Electrician

Office Asstt/Asstt. Electrician

8
2.7 Management Hierarchy of Mutual Trust Bank Limited

Manager

Credit Dept. In General banking Foreign Exchange

charge Dept. In-charge Dept. In-charge

Senior Officer Principal Officer Principal Officer

Officer Officer Senior Officer

AssistantOfficer Assistant Officer Officer

Teller Assistant Officer

Figure 1 Organizational Hierarchy

9
2.8 Operational Network Organogram of Mutual Trust Bank Limited
The board of MTBL: MTBL Bangladesh is one such office that has had to overcome several
challenges in order to achieve the position it now has. The Board of Directors, Executive
Committee, Audit Committee, and Management and Management Committee of Common Trust
Bank provide high-quality Corporate Governance by being clear, faultless, and masterful in
discharging their responsibilities.

Transparency
Stewardship

Internal
Accountability Control
& Integrity of Good
Accounting Governance
Principles

Sustainability
of Corporate
Performance
orientation Behavior

Discloser of
Material Facts

10
 Chapter 3
Overview of Credit Risk Management

11
3.1 Credit
Credit discovers from "credo" the sense "I believe" It is credited to the Latin term. It is a bank's
system for managing finances by lending to creditors and generating money to invest. A bank lends
money to a borrower in return for an interest-bearing loan or credit. Mutual Trust Bank Limited
often offers short-term loans and advances to fulfill both the borrower's and the lender's working
capital needs. Small amounts of a bank's demand and time obligations are advanced on a long-
term basis by the borrower's regular redemption in increments, where the banker generally
demands on a bank.

3.2 Type of Credit Risk

• Default Credit risk: The risk of failing to pay all or a portion of the obligation owed to
any product liability more than 90 days prior to the risk that may impact all exchanges,
including unrestricted transactions such as loans, securities, and financial investment is
limited.
• Concentration risk: The risk is associated with the impact of one or more issues, with the
prospect of assets growing significant enough to jeopardize the bank's operations. It might
be a single-name or a high-volume model.
• Country Risk: The risk of loss as a result of a sovereign government's freezing of overseas
payments or the obligation of its subsidiaries.

3.3 Objectives of Credit Risk Management

The objectives of credit risk management are mentioned bellow:
• The position of the job role may be changed by top-level management.
• Make the loan application process as simple as possible.
• To offer lending advice.
• Assessing and balancing a range of roles
• Customer requirements are met in a timely and effective manner..

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3.4 Definition of Credit Risk Grading
• The Credit Risk Grading (CRG) is a compound phrase based on a predetermined metric
that has affected credit risk exposure.
• Mortgage Security is a simple method to developing a Credit Management Security
System.
• A Security Code is a number, letter, or symbol that acts as an early warning of debt's
hazards.

3.5 Credit Assessment & Risk Grading

• • A complete credit and risk evaluation is required before the loan is granted, as well as at
least once a year for all beneficiaries. The benefits of this method should be presented in
the loan application by Relationship Management / Finance ("RM") and authorized by
Credit Risk Management (CRM). RM will be in responsible of client contacts and ensuring
that all approved loan applications are available. End-of-life corporate bank information
must be known to RMs, and new borrowers, executives, and guarantors must be proactive.
It is important for RMs to understand their customers and to closely monitor new recruits,
the principal, and the guarantor to ensure that these groups are truly represented. Each bank
is required to establish KYC and financial security protocols that must be followed on a
regular basis. The loan application should include at least the following details, as well as
a brief explanation of the RM risk assessment:
• Security Arrangements
• Amount and types of loan proposed
• Purpose of loan
• Loan Structure (Interest, Repayment Schedule, Covenants, Tenor)

• Risk Grading: All banks must accept a credit risk rating. To guarantee that the risks
connected with account management, standards, and costs are met, the recipient of specific
hazards or risk measures should be defined. The risk distribution is an important measure
of a bank's quality; thus, it is crucial that the risk is a robust method. The level of risk
should be utilized to determine the worth of each gain. If the risk is found to be impaired,
the borrower's risk level and benefits should be adjusted as soon as possible. The risk

13
 classes of the recipient must be expressly indicated in the loan application. Consider the
risk matrix's lowest levels as an example. More caution should be exercised while dealing
with risk.
The RM must complete the initial notification procedure in a timely manner and submit it
to the CRM for approval at all costs. Following approval, the report must be submitted to
credit management, which is responsible for ensuring that genuine receivables/receivables
are corrected on a regular basis. In the case of inaccurate information inside the system,
cutbacks should be made immediately and not postponed until the yearly review process.

3.6 Process of Credit Risk Management

The risk management strategy must include the whole loan cycle, beginning with the credit history
in the financial institution's books and ending with the credit having passed through the books
(Morton Glantz, 2002). Good manners should be taught in schools.
• Disbursement
• Credit documentation
• Credit administration
• Credit Processing
• Credit approval
• Control and Monitoring of individual credits
• Monitoring the overall credit portfolio
• Credit Classification
• Managing problem credits (SamaunKabir, 2020)

3.7 Credit Processing

The process of obtaining all of the necessary credit history and application information is known
as debt history. Loan application forms must provide enough information to keep track of
everything needed for the initial credit start evaluation. Financial institutions should maintain an
inventory on this link to ensure that all critical information is properly documented. Financial
institutions must first make decisions that will serve as a guideline in defining the type of guarantee
that will be accepted by their operations. As part of the procedure, an application may be denied

14
by an anonymous customer. These procedures will help companies prevent and evaluate
applications that may be refused in the future.

The next step of the credit examination is the credit evaluation, in which the financial institution
assesses the client's ability to carry out its tasks. Institutions should create a well-planned credit
evaluation criterion (Morton) to ensure that only clients can reimburse from adequately established
cash flow sources over time (Morton Glantz, 2002).
• Corporate customers' management capabilities
• Purpose and quantity of facilities, repayment sources.
• Current and anticipated operational environment of the borrower.
• Physical examination of the beneficiary's business premises, as well as the facilities subject
to the proposed funding
• The applicant's honesty and reputation, as well as its legal competence to carry credit
liability.
• Sensitivity of the industrial sector relevant to the recipient's risk profile and economic
fluctuations

3.9 Credit approval

In addition to these options, a financial institution must have written regulations based on the credit
approval method and the approval power of the individual or committee. Authorizing power must
be approved by the Management Board. Approval authorities will alter the terms of new credit
approvals, renewals of current credit and previously authorized credit, and, in particular, credit
restructuring, which is expected to begin soon. It has been recorded and documented. Prudent
credit practice implies that persons with credit approval authority should not be held liable for
customer interactions.

Depending on the size of the financial institution, it should form a group of credit risk specialists
with a high level of competence and expertise, as well as demonstrate respect for credit risk
assessment, approval, and management. A system of accountability should be created in
conjunction with the decision-making process, including a clear method of monitoring the
decisions made as well as an accurate identification of the persons / committees involved.

15
 Chapter 4
Credit Management of Mutual Trust Bank Limited

16
4.1 Credit Risk Management System of MTB
Mutual Trust Bank Limited (MTB) has built a solid credit risk management system to proactively
oversee advance portfolio to reduce tragedies. It has substantially improved the executive's risk
culture and created guidelines for the separation of duties and tasks related with the Credit
Operation of the Bank. The following are MTB's key measures toward establishing credit risk
board standards: The following are the executives' recommendations for MTB's significant gains
in credit risk execution:

• It has created its own Credit Policy Criteria in compliance with the fundamental risk
guidelines of Bangladesh Bank.
• The policy takes sectoral concentration into consideration, and it specifies a specific
industry exposure cap.
• The Head Office's organizational structure has been split in accordance with the CRM
Guidelines.
• The borrower's risk grade is assigned and mentioned in the credit proposal; and • Credit
Approval Authority is expressly defined in the policy.
• A separate Credit Monitoring Department guarantees that the loan portfolio is closely
monitored.

4.2 Credit policy of MTB

By providing financial aid to business, trade, and industry, the MTB Credit Policy represents the
country's general macroeconomic stability. MTB's credit activities go into every corner and crevice
of society. They provide big and medium-sized company and industry finance. At the same time,
as a policy concern, they take care of entrepreneurial growth by operating from corporate
backgrounds. –
• When choosing borrowers, it focused on the customer, "Man," and "Business," rather
than just the security.
• The loan portfolio's diversity is ensured.
• It takes measures to maintain an appropriate "mix" of short, medium, and long-term
funding in its credit portfolio.
• The interest charge is changeable based on the proposal's and the consumer's insistence.

17
4.3 Credit Sanctioning Authority of MTB
MTB believes in the decentralization of power and authority. The Bank has created a framework
to guarantee that the executive's delegated authority may be computed in a realistic and qualitative
manner in order to successfully implement the power delegation plan and reap the most advantage
for both the bank and the executive in question.
The basic guidance they obey to accomplish the delegation of authority target is—the
• The Managing Director has the authority to execute all of the rights granted to other bank
executives.
• Executives, other than the Managing Director, exercise the allocation of powers solely
when that authority is granted.
• The Managing Director has the ability to suspend the exercise of delegated authority by
any executive by specific or general order.
The approval procedure verifies the separation of decision-making authority from Partnership
Management/Marketing (RM). The relevant approval committee then authorized the credit. All
business units can see the technique under:

Credit Application

Recommended By RM

Zonal/HO Credit Risk Officer

Head of Credit Risk (HOCR) &

Credit Committee

Executive Committee/Board

4.4 Credit Facilities of Mutual Trust Bank Limited

Mutual Trust Bank Limited's major focus is financing business, commerce, and industrial
operations through an efficient delivery system.

18
 • Mutual Trust Bank Ltd. extends loans to almost all commercial activities that serve a good
purpose.
• The Bank's advance arrangement encompasses a diverse variety of credit products.
• Credit offices are provided to individuals such as housewives, financial managers, small
and big company houses, dealers, manufacturers, and corporate organizations, among
others.
• Prime clients get prime rates on loans and other administrations; and • quick thankfulness,
investigation, selection, and payment are guaranteed.
• Credit offices are distributed in line with Bangladesh (Central Bank of Bangladesh) laws
and the Bank's operational processes.

4.5 Lending Criteria of Mutual Trust Bank Limited

To operate the projected business, the business visionary must be dependable and well-equipped.
The project should be feasible from the standpoints of a legal expert, a business, money, and
money.
4.5.1Technical Viability
• The project must be technically sound as well as environmentally friendly.
• Technology transfer should be ensured in the event of borrowed know-how.
• The building should be well-planned and well-built.
4.5.2 Commercial viability
• The product's market outlook and potential must be completely ensured at competitive
rates.
• The entrepreneur should have access to a marketing channel for the product.
4.5.3 Financial Viability
• The debt equity ratio should be appropriate, as assessed by the bank on an individual case
basis.
• The debt service coverage ratio should be at least 2.5 times at the optimal level of output.
• The IRR should preferably be greater than 20%.
4.5.4 Economic Viability
• The project should help the national economy, generate enough job opportunities, and
be environmentally sustainable.

19
4.6 Credit Evaluation Principles
A few lending regulations or standards are maintained in advancing advances to reduce the risk
level as well as for productive financial business. The basic loan requirements are described here.
• Liquidity:
The availability of bank assets without prior warning is referred to as liquidity. A development's
liquidity suggests that it will be compensated on demand on the due date or within a short period of
time. As a result, banks must maintain sufficient liquidity to reward their investors, necessitating a
trade-off between liquidity and benefit.
• Safety:
The confirmation of return of distributed credits denotes happiness. The bank is willing to travel to
bring in cash, but health should never be sacrificed for gain in order to secure the security of the
advance. Borrowers should be picked with care.
• Profitability:
Banking is a profit-maximizing industry. The difference between the premium obtained on sales
and the premium paid on store determines a significant percentage of the bank pay; moreover,
unfamiliar trade company is highly profitable. The bank will not engage in an exchange unless a
satisfactory return is guaranteed.
• Intent:
Banks encourage credit for financial reasons. The bank will not provide any unnecessary advances,
but the borrower may be free of any risks.
• Security:
The security given for a development serves as a safety net in times of need. In the case of an
unforeseen disaster, security acts as a well-being esteem. Because risk factors are taken into
account, security inclusion is necessary prior to loaning.

• National interest:
The banking industry is critical to a country's economic prosperity. The bank would lend if the
objective of the loans could help more to the general financial growth of the country.

20
4.7 Different Types of Credit Facilities by MTB:
All loan activities have been divided into the following major groups based on the nature of the
fundings:
Loan (General):
This category comprises short-term, medium-term, and long-term loans made to
individuals/firms/industries for a specific purpose over a certain period of time and generally
repayable in installments. This loan type is generally authorized to accept funds in the following
categories:
(i) Large & Medium Scale Industry and
(ii) Small & Cottage Industry.
(iii) Very often term financing for Agriculture & Others are also included here.
House Building Loan (General):
This kind of advance includes credits provided to individuals/ventures for the building of a
dwelling (private or commercial). The loan is repayable in regular payments over a certain length
of time. Such advances are referred regarded as loans (HBLGEN).
House Building Loan (Staff):
This loan is only offered to bank employees for the purchase or construction of a home and is
known as a Staff Loan (HBL-STAFF).
Other Loans to Staff:
Loans made to workers for reasons other than house construction must be designated as Staff Loan
(Gen).
Cash Credit (Hypo.):
This form of lending incorporates loans given to individuals/firms for the purpose of exchanging
products at a discount or to businesses to meet working capital requirements against the
hypothecation of commodities as primary security. It's a never-ending line of credit. It is permitted
under the conditions of the courses.
I. "Commercial Lending" when the customer is other than an industry and
II. “Working Capital" when the customer is an industry.
Cash Credit (Pledge):
This type of advance includes facilities to individuals/firms for exchanging as well as full
transactions, or to companies as working capital against pledge of products as needed security. It
is likewise a continuous credit and, like the previous one, is permitted under the classification.
I. "Commercial Lending" and
II. "Working Capital".

21
Hire Purchase:
Hire Purchase is a sort of part credit in which the Hire-Purchaser agrees to take the item on
enlistment at a certain rental, which includes the repayment of the principal as well as excitement
for changing the advance within a specific time frame.
Lease Financing:
Lease Financing is one of the most helpful sources of purchasing capital apparatus and gear in
which a customer is given the choice to utilize a benefit generally for a defined duration in return
for lease installment. It is a term loan that is repayable in installments.
Time Loan:
This is a one-time budgetary convenience for a limited time, often a year, to meet a specific need.
The credit is not sustainable within the validity period, and no exchange is permitted.
Consumers Credit Scheme:
It is a bank's extraordinary credit plan to fund the acquisition of buyers' strong to the specified pay
gathering in order to increase their quality of living. The advances are approved on a case-by-case
basis against individual assurance and client store of a specific amount of value. The credit is
repayable over a certain period of time through regular scheduled installments.
SOD (General):
Individuals and businesses can get advances against financial commitments (for example, a lien on
an FDR/PSP/BSP/Insurance Policy/Share, etc.). This might be a one-time or recurring credit.
SOD (Others):
Advances approved against a task of work request for the performance of legally obligated works
are included in this category. This development frequently takes into account a certain period and
reason, for example, it is not a constant credit. It falls under the category "Others."
SOD (Export):
When fares do not show up prior to the import installment date, advance referred to purchase
unfamiliar money for installment against L/Cs (Back-to-Back). This is a short-term development
that falls under the heading of "Business Lending."
PAD:
Payments made by the bank in exchange for the supply of transportation reports for products
imported via L/C are included in this category. It is a period advance connected to import and is
normally traded against installments commonly produced by the gathering for the retirement of

22
reports from the tradition's authority for the arrival of imported products. It falls under the heading
of "Business Lending."
LlM:
This category includes advances pertaining to the retirement of transportation archives and the
arrival of products imported by L/C accepting compelling responsibility for the merchandise by
promise in God holds under Bank's lock and key. This is also a brief import-related development
known as post-import money, which comes under the category "Business Lending."

4.8 How Mutual Trust Bank recover their Loan:

When Mutual Trust Bank approves credits and advances to its clients, it defines the recovery
design explicitly in the advance agreement. Some credit holders, however, fail to pay their bills on
schedule. Both nationalized and private-sector commercial banks must handle this issue. This is
likewise the case with Mutual Trust Bank. The bank has established specific advance recovery
measures to tackle the issue of past-due credit. Mutual Trust Bank Limited has executed the
rehabilitation initiatives listed below:
• Establishing a credit and checking cell within the bank
• Reorganizing the bank's credit authorizing and disseminating strategy • Sanctioning
advances and advances against adequate safeguards to the fullest degree feasible •
Giving the branch administrator additional responsibilities in the credit the board
dynamic cycle
• Offering a plethora of incentives to responsible borrowers
• Emphasizing transitory loans and advances; • Limiting credits and advances for
insolvent companies; and • Taking legal action against unsound borrowers as soon as
feasible within the time range specified by the law of barriers.

4.9 Overall Procedure for Sanctioning Loan

The following procedure need to be followed for giving advances to the customer. These are:

Party’s application:
From the outset, the borrower had to submit an application to the specific branch for a credit, where
he had to clearly state the reason for the advance. The borrower Bank official thoroughly checks
all of the data after adopting the application structure. He also double-checks the borrower's bank

23
account. If the authorization is given, he gives the incoming borrower structure X (bank-approved
application type).
Filling the form of profile of client:
Following the completion of the gathering's application, the applicant must complete the
authorized structure supplied by the recognized branch that contains information about him. It
includes the following information: name with office area, official address and phone number,
complexities of long-haul firm, achievements and disappointments, type of credit required, and so
on.
Collecting CIB Report from Bangladesh Bank:
Mutual Trust Bank sends a letter to Bangladesh Bank after receiving the advance application in
order to acquire a report from that point. A CIB (Credit Information Bureau) report is what this is.
For the most part, Mutual Trust Bank requests this information from the administrative center for
a number of projects. The goal of this report is to inform the reader whether or not the borrower
has secured credit from another bank.

Application to the Head Office Of MTB:

When the recognized officer is pleased with the customer's application, he or she sends an
application to the MTB's headquarters for loan approval.

Processing loan Proposal:

Following receipt of the CIB report from Bangladesh Bank, each individual branch produces an
investment offer with investment terms and conditions for approval by the Head Office. Sending
an investment proposal necessitates the submission of the following reports:

Necessary Documents:

i. When transferring cash, banks generate a slew of paperwork that must be signed by
borrowers prior to credit disbursement. In fact, some of them are referred to as charge
reports. Breakthroughs and records on a grand scale
ii. A loan application structure that the client has authorized.
iii. Acceptance of the term and authorization policy states
iv. A business license.

24
 v. v. In the event of a Partnership Firm, a duplicate of the enrolled association deed officially
recognized as a genuine duplicate or an organization deed on the taka-150 group's non-
legal stamp fully Notarized.
vi. Demand promissory notes are a type of promissory note.
vii. Stock and product hypothecation letter.
viii. Letter of hypothecation of books obligations and receivable.2
ix. Letter of hypothecation of plant and hardware.
x. Personal letter of assurance.

Project Appraisal:
It is the pre-investment analysis. Project appraisal in the Banking sector is important for the
following reasons:
i. To achieve organizational goals
ii. To recommend if the project is not designed properly
iii. To justify the soundness of an investment
iv. To ensure repayment of Bank finance

Head Office Approval:

When Head Office gets an inspection from a branch, it re-evaluates the initiative. If it looks to
be a realistic alternative, the HO submits it to the Board of Directors for Investment approval.
The proposal is reviewed by the Board of Directors (BOD), who then determines whether or not
to support the Investment. If the BOD accepts the project, the HO transmits the permission to
the appropriate branch.

4.10 Five C’s of Analysis Credit

Character: It's typical at a character stage bank to try to judge a client's credit history. He either
keeps his prior credit correctly or encounters complications. This side is evaluated by the bank as
a whole.
Capacity: This word relates to a client's capacity to return his loan on time or not, which is
typically on the bank's side at this point.
Capital: Capital is the cornerstone of finance, where a client would utilize his credit in a certain
market, which is either lucrative or not measured by banks.

25
Collateral: Collateral is a word that refers to an asset that a lender accepts as security for a loan.
Depending on the loan's purpose, collateral might be real estate or other forms of property. The
collateral provides as insurance for the lender. If the borrower fails to meet their loan
commitments, the lender may seize and auction the collateral in order to recuperate some or all of
their losses.
Conditions: When a customer takes out a loan, he or she agrees to these conditions. Customers
are also subject to limitations imposed by banks in order to protect their funds.
After calculating the 5 CS, a bank can determine whether or not to make the loan. To evaluate the
client, the following grading system is utilized.

26
Chapter-5
Analysis

27
5.1 Loan and Advance:
When an organization is able to adapt to the problems that the world throws at it and turn them
into a positive position, it demonstrates its real character. Despite our achievement in sustaining
the favorable trend, private component credit interest rates have continuously stayed low, despite
the falling loan cost pattern.
Year Total Loan and Advance Growth rate
2016 114,355,762,842
2017 145,606,993,782 21%
2018 166,145,119,129 12%
2019 189,729,715,862 12%
2020 203,887,322,069 7%

Total Loan and Advance

250,000,000,000

200,000,000,000 7%
12%
12%
150,000,000,000 21%

100,000,000,000

50,000,000,000

0
2016 2017 2018 2019 2020

Total Loan and Advance Growth rate

Interpretation:
Mutual Trust Bank Limited's total loan and advance amount grows each year. The entire loan in
2016 was TK. 114,355,762,842. In 2017, it was raised to tk. 145,606,993,782.00. It was Tk.
166,145,119,129.00 in 2018, and it increased to Tk. 203,887,322,069.00 in 2020. As shown in the
graph, MTB's total credit and advances are increasing as a consequence of their attractive and
flexible loan packages.

28
5.2 Loan to Deposit Ratio:
The loan-to-deposit ratio (LDR) measures a bank's liquidity by comparing total loans to total
deposits during the same time period. The LDR is expressed as a percentage. If the ratio is too
high, the bank will be unable to satisfy any unexpected financial requirements. If the proportion is
too low, the bank will not profit as much as it should.
Year Total Loan & Advances Total Deposit Loan to Deposit
Ratio
2016 114,355,762,842 131272330273 87.11%
2017 145,606,993,782 151,776,065,501 95.94%
2018 166,145,119,129 166,160,290,425 99.99%
2019 189,729,715,862 190,947,704,349 99.36%
2020 203,887,322,069 190,120,484,514 107.24%

Loan to Deposit Ratio

120.00%
107.24%
99.99% 99.36%
95.94%
100.00%
87.11%
80.00%

60.00%

40.00%

20.00%

0.00%
2016 2017 2018 2019 2020

Interpretation:
We can see that Mutual Trust Bank Limited's loan to deposit ratio is growing year after year. This
is due to their appealing and flexible lending packages. The overall loan to deposit ratio in 2016
was 87.11 percent. In 2017, it was raised to 95.94 percent. It was 99.99 percent in 2018, and it will
be 107.24 percent in 2020. The graph shows that MTB's total loan to deposit ratio is growing as a
result of their appealing and flexible lending packages. MTB's deposit is likewise rising year after
year.

29
5.3 Standard Loan/Performing Loan
Standard loan is an unclassified loan. Such credit accounts are doing superbly in terms of their
branch provisions, with no past dues.

Year Total Loans and Amount of Standard Growth Ratio of Standard

Advances (BDT) Loan (BDT) Rate

2016 114,355,762,842.00 102,626,596,813 89.74%

2017 145,606,993,782.00 133,113,561,800 23% 91.42%
2018 166,145,119,129.00 153,226,820,129 13% 92.22%
2019 189,729,715,862.00 171,958,458,994 11% 90.63%
2020 203,887,322,069.00 188,569,184,101 9% 92.49%

Growth Rate & Standard Loan Ratio

1 89.74% 91.42% 92.22% 90.63% 92.49%

0.8

0.6

0.4
23%
0.2 13% 11% 9%

0
2016 2017 2018 2019 2020

Growth Rate Ratio of Standard

Interpretation:

Above the charts showing that standard loan of Mutual Trust Bank Limited between 2016 to 2020.
In 2016 their standard loan amount was 102,626,596,813 which ratios of standard is 89.74% and
the next years its growth rate was 23% and ratio rate was 91.42%. And after two year in 2020 its
growth rate is 9% which standard ratio is 92.49%.

30
5.4 Sub-standard Loan/ Non- Performing Loan
Sub Standard is a classified loan.
Year Total Loans and Advances Amount of Sub- Growth Ratio of Sub-
(BDT) standard Loan Rate standard
(BDT)
2016 114,355,762,842.00 846,750,537 0.74%
2017 145,606,993,782.00 166,108,000 -410% 0.11%
2018 166,145,119,129.00 534,891,945 69% 0.32%
2019 189,729,715,862.00 758,461,000 29% 0.40%
2020 203,887,322,069.00 585,186,000 -30% 0.29%

Growth Rate & Sub-Standard Loan Ratio

100%
0%
-100% 2016 2017 2018 2019 2020

-200%
-300%
-400%
-500%

Growth Rate Ratio of Sub-standard

Interpretation:

From the above table it is identified that the sub-standard loan of MTB is decreasing but in 2018
the mount of sub-standard loan is high and it was a highest growth rate 69% and sub-standard loan
ratio was 0.32% but in 2020 it reduced to 0.29% which is a good sign.

31
5.5 Doubtful Loan
A dubious loan is one whose total repayment is unclear. Doubtful loans are generally
nonperforming loans with past-due interest and the danger of not being fully repaid. A questionable
loan contains all of the characteristics of a subprime loan as well as a collateral shortfall, making
complete collection uncertain and improbable.

Year Total Loans and Amount of Growth Percentage of Doubtful

Advances (BDT) Doubtful Loan Rate Loan in Total Loans
(BDT)
2016 114,355,762,842.00 405,055,372 0.35%
2017 145,606,993,782.00 133,943,000 -202% 0.09%
2018 166,145,119,129.00 360,656,648 63% 0.22%
2019 189,729,715,862.00 379,076,833 5% 0.20%
2020 203,887,322,069.00 261,891,000 -19% 0.13%

Percentage of Doubtful Loan in Total Loans

0.40%
0.35%
0.35%
0.30%
0.25% 0.22%
0.20%
0.20%
0.15% 0.13%
0.09%
0.10%
0.05%
0.00%
2016 2017 2018 2019 2020

Interpretation:

From the above graph it represents that the overall Doubtful Loan of MTB is fluctuating over the
year 2016-2020. In 2016 the percentage of doubtful loan was 0.35% it was the highest and in 2017
the percentage of doubtful loan was0.09% which was the lowest growth rate of MTB

32
5.6 Bad/Loss Loan
A loan that is not being repaid according to the terms agreed upon by the borrower and the lender,
and which could never be repaid.
Year Total Loans and Amount of Growth Rate Percentage of Bad/Loss
Advances (BDT) Bad/Loss Loan Loan in Total Loans and
(BDT) Advances

2016 114,355,762,842.00 3,731,282,091 3.26%

2017 145,606,993,782.00 5,968,306,000 18% 4.10%
2018 166,145,119,129.00 8,055,852,152 13% 4.85%
2019 189,729,715,862.00 9,089,680,000 8% 4.79%
2020 203,887,322,069.00 8,540,655,000 4% 4.19%

Percentage of Bad/Loss Loan in Total Loans and Advances,

Growth Rate
20% 18%

15% 13%

10% 8%
4.85% 4.79%
5% 3.26%
4.10% 4% 4.19%

0%
2016 2017 2018 2019 2020

Growth Rate Percentage of Bad/Loss Loan in Total Loans and Advances

Interpretation:

From the above graph it represents that the overall Bad/loss Loan of Mutual Trust Bank is
increasing year to year. In 2016 the percentage of bad/loss loan was 3.26% which increased to
4.10% in the next year 2017 and also continuously increased to 4.19% in 2020 which is not good
for the bank.

33
5.7 Capital Adequacy Ratio – CAR
The capital adequacy ratio (CAR) indicates a bank's available capital as a percentage of its risk-
weighted credit exposures. The capital adequacy ratio, also known as the capital-to-risk-weighted
assets ratio (CRAR), is used to protect depositors while also improving global financial
institutions' stability and efficiency.

Particular 2016 2017 2018 2019 2020

Capital Adequacy Ratio – CAR 11.29% 13.76% 12.86% 12.86% 12.75%

Capital Adequacy Ratio – CAR

16.00%
13.76%
14.00% 12.86% 12.86% 12.75%
12.00% 11.29%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
2016 2017 2018 2019 2020

Interpretation:
The above figure and graph show the Capital adequacy ratio of Mutual Trust Bank Limited. In
2016 the CAR was 11.29% which increased to 13.76% in 2017 and which was the highest CAR
between the 5 years, after 2076 the CAR of Mutual Trust Bank remains almost stable from 2018
to 2020. The industry average of CAR is 11.67% (Hassan, 2021) so, the CAR of MTB is very good
compared to the industry average.

34
5.8 Cost to Income Ratio
The cost to income ratio is often used to assess a bank's profitability. It indicates the operating
efficiency of the bank. The lower the ratio, the better, implying that banks are more lucrative. The
cost-to-income ratio and the profitability of the bank are linked in an indirect way.

Particular 2016 2017 2018 2019 2020

Cost to Income Ratio 54.65% 53.82% 50.31% 53.21% 64.66%

Cost to Income Ratio

70.00% 64.66%

60.00% 54.65% 53.82% 53.21%

50.31%
50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
2016 2017 2018 2019 2020

Interpretation:
The above figure and graph represent Mutual Trust Bank Limited's Cost to Income ratio. The
figure shows that the Cost to Income ratio fluctuates from 2016 to 2020. In 2017, the ratio was
53.82 percent, which dropped to 50.31 percent the following year, the lowest of the four years,
before rising to 64.66 percent in 2020. In comparison to the previous five years, 2018 is a good
year since the Cost to Income ratio was lower in 2018, indicating that banks were more profitable
in 2018.

35
5.9 Return on Asset (ROA)
A company's return on assets (ROA) is a measure of its profitability in relation to its total assets.
The return on assets (ROA) of a firm demonstrates to a manager, investor, or analyst how well its
management is employing its assets to generate profits.

Particular 2016 2017 2018 2019 2020

Return on Asset (ROA) 0.94% 1.08% 0.82% 0.56% 0.37%

Return on Asset (ROA)

1.20%
1.08%

1.00% 0.94%
0.82%
0.80%

0.56%
0.60%
0.37%
0.40%

0.20%

0.00%
2016 2017 2018 2019 2020

Interpretation:
The chart displays Mutual Trust Bank Limited's Return on Asset (ROA), which shows a declining
trend from 2017 to 2020. The ROA was 1.08% in 2017, after that it continuously decreasing to
2020. Compared to the five years in 2020 the ROA is lowest which is 0.37% and the highest ROA
was in 2017 which was 1.08%. That indicates the firm is inefficient in generating profit from its
assets.

36
5.10 Return on Equity (ROE)
A company's return on equity (ROE) is a measure of its profitability in relation to its total equity.
The return on equity (ROE) of a firm demonstrates to a manager, investor, or analyst how well its
management is employing its owner stock to generate profits.

Particular 2016 2017 2018 2019 2020

Return on Equity (ROE) 15.61% 18.35% 13.83% 9.03% 5.83%

Return on Equity (ROE)

20.00% 18.35%
18.00%
15.61%
16.00%
13.83%
14.00%
12.00%
10.00% 9.03%
8.00%
5.83%
6.00%
4.00%
2.00%
0.00%
2016 2017 2018 2019 2020

Interpretation:

The graph is showing the Return on Equity (ROE) of Mutual Trust Bank Limited and it is seen
that the ROE of MTB was decreasing from 2017 to 2020. In 2017 the ROE was 18.35% after that
it start decreasing and it decreased to 5.83% in 2020. which was the lowest ROE from the other
years. That means the company are not efficient to generate profit by using its Owner Equity.

37
 Chapter 5
Findings, Recommendations and Conclusions

38
5.1 Findings of the Study
By analyzing the credit risk management practice of Mutual Trust Bank and their performance in
last five years the following:

1. The loan processing period is lengthy due to preparation of credit proposals, proper
documentations and negligence of the employees. Most of this time is spent for the
correspondence between the branch and Head Office.
2. The bank avoids corporate (large) enterprise financing to avoid risks associated with it,
while trade and commerce financing get highest priority.
3. The bank has no specific credit recovery department or unit to realize the credit from
borrowers in time. These tasks are often performed by the branch manager and the
relationship manager.
4. The sub-standard loan ratio also fluctuating. In 2016 to 2017 it was decreased 0.74% to
0.11%. But in 2018 it increased 0.11% to 0.32% after that it was again decreased.
5. The bad loan of Mutual Trust Bank Limited also increasing year by year. In 2019 was much
more than other four years.
6. The capital adequacy ratio (CAR) of MTB is lower than the industry Average which is not
safe for the bank.
7. The cost to income Ratio is increasing continuously after 2018 which is not good sign for
the bank.
8. The bank is inefficient in generating profit from its assets and owner equity and the
percentage of ROA and ROE are very low compared to industry average.

39
5.2 Recommendation
To improve credit risk management further, Mutual Trust Bank Limited should improve in
some areas. Those are:
1. To provide better service to its customers, the bank should reduce the time it takes to process
loans. To reduce loan processing time, the branch manager should be given more authority
to sanction loans.
2. The bank's consumer loan facilities should be increased in order to increase market share.
3. The bank should develop a credit recovery unit who will monitor the payment status of the
borrowers and that will be a unique tool to realize credit from the borrowers.
4. For maintaining sub-standard advance MTB bank can grow more redone parameters for
credit endorsement process under the general rule of Bangladesh bank.
5. To decrease the bad loan, MTB bank should increase the communication with the customer
for timely repayment and take the necessary legal action against the obstinate advance
defaulter. It should be done in a legal manner.
6. The bank should focus to improve the capital adequacy ratio (CAR) to lowering the risk of
becoming insolvent.
7. To reduce cost to income ratio the bank either needs to increase its operating income or
decrease its operating expenses. Employee expenses and administration expenses come
under the operating expenses.
8. The Bank should ensure the effective use of its asset and owner equity to generate more
profit.

40
5.3 Conclusion
Mutual Trust Bank Ltd. is a commercial bank that began operations in 1999. It has just recently
developed charity among their population by providing amazing administrations via numerous
divisions. This accomplishment has been made possible by the administration's dedication,
responsibility, and dynamic initiative over the years. Mutual Trust Bank Limited's working
environment is energizing. Despite the bank's limited capacity to focus season, it has been
successful in positioning itself as a reformer and dynamic monetary foundation in the country.
Credit strategy is a useful financial tool for the corporate sector. This government is held in high
regard. It has accumulated such a condition in the financial arena that people in developed and
developing areas are more vulnerable to this government. In Bangladesh, credit offices or advances
have been increasingly popular in recent years. However, several improvements in administrations
and offices must be done at this office.
Mutual Trust Bank's Credit Division has a certified and determined set of executives and personnel
that are always striving to provide the best service to clients. They often screen credit in a variety
of areas and positions. Prior to granting credit, they evaluate whether the advance would be
advantageous and if the consumer will be able to repay the advance within the term specified.

However, all the business banks are currently attempting to accomplish this. In this bank, the
representatives are exceptionally energetic by their compensations and different advantages. Here,
all the workers are a lot of helpful with their clients, partners, and essentially guests.

41
References
Mutual Trust Bank Ltd. Annual Report (2016, 2017, 2018, 2019, 2020).
2. Web site of Mutual Trust Bank Ltd.: www.mutualtrustbank.com
3. Different Office Circulars.
4. Some other web sites.

42