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CHAPTER-1

History of the Banking Industry in Bangladesh

The banking system at independence consisted of two branch offices
of the former State Bank of Pakistan and seventeen large commercial banks, two
of which were controlled by Bangladeshi interests and three by foreigners other
than West Pakistanis. There were fourteen smaller commercial banks. Virtually
all banking services were concentrated in urban areas. The newly independent
government immediately designated the Dhaka branch of the State Bank of
Pakistan as the central bank and renamed it the Bangladesh Bank. The bank was
responsible for regulating currency, controlling credit and monetary policy,
and administering exchange control and the official foreign exchange reserves.
The Bangladesh government initially nationalized the entire domestic banking
system and proceeded to reorganize and rename the various banks. Foreign-owned
banks were permitted to continue doing business in Bangladesh. The new banking
system succeeded in establishing reasonably efficient procedures for managing
credit and foreign exchange.

Banking
Industry Milestones

Current
Structure of Banking Industry

Banks in Bangladesh can
be classified into the following categories:

Industry Condition in
Bangladesh

 Depending upon the relationship with and the
degree of control of the Bangladesh Bank banks in Bangladesh are divided into
scheduled and non-scheduled banks. Scheduled banks are enlisted by the
Bangladesh Bank under the provisions of section 37 of the Bangladesh Bank Order
1972. They are promise bound to obey central bank instructions, rules and
regulations especially, those relating to required capital and provisions,
statutory liquidity reserves, audited returns etc. Through scheduling, banks
gain special status and enjoy some special facilities from the central bank
such as re-discounting, participation in the money market, membership of the
clearing house and deposit insurance scheme. Non-scheduled banks do not enjoy
such privilege. The list of non-scheduled banks in Bangladesh includes the Eden
Bank, Saidpur Commercial Bank, Comilla Co-operative Bank, Dinajpur Industrial
Bank, Rajshahi Bank, Shankar Bank, Faridpur Banking Corporation and Madaripur
Commercial Bank.

After taking over the management
of American Express Bank by Standard Chartered Bank in the year 2007, a total
of 48 scheduled commercial banks including eight foreign banks have been
operating business in Bangladesh through 6383 branches. Out of total business
56.5% handled by private commercial banks (PCBs) and rest 43.5% dealt by
nationalized commercial banks (NCBs).

Deposit in
banking system in 2007 stood at Tk 1426 billion, registering 15% growth. Total
assets increased by 14%, of which 8.2% in NCBs and 21.2% in PCBs. Total loans
and advances during the year was Tk 1047 billion against total assets of Tk
1725.5 billion. The cash balance in hand was Tk 15.5 billion including the
deposit with Bangladesh Bank (BB) of Tk 86.3 billion. The total liability
deposit of banking sector in 2005 was Tk 1725.5 billion including Tk 92.7
billion capitals and reserve. The total operations of every bank were assessed
according to five fixed criteria. These criteria are capital adequacy, asset
quality, management efficiency, earning capacity and liquidity (CAMEL).

Capital Adequacy:

For the safety
and protection of depositor’s benefit, capital adequacy must be maintained at
9%. It is also the coverage of financial debacles like loan loss, share market
loss, foreign currency dealing loss, interest rate fluctuation loss and the
protection for off balance sheet affairs hit. During the year 2007 the banking
sector of Bangladesh has been able to keep an average 8.7% capital adequacy
against the minimum requirement of 9%.

 Asset Quality:

A total of
60.7% assets of banking sector were used as loans and advances. But the high
rate of classification has enhanced vulnerability of assets. In 2007, the
classified loan of NCBs was 14.6% against the asset, which was 5.6% for PCBs,
0.9% for foreign banks and 26.6% for specialized banks. A good number of banks
have not been able to keep required provision against the classified loan risk
from the profit during the year.

Management Efficiency:

Management is
the key to the development and expansion of a bank. Management efficiency
judged on the basis of the ratio of total expenditure to income, operational
expenses and total expenses, per head employee income & expenditure and interest
rate spread. The average expenditure-income ratio during the year 2007 was
102%, which is a painful scenario for our banking management. 

 Earning Capacity:

Strong earning
and high profitability is the good sign of a bank’s present and future strength.
Any loss can be compensated from the profit of a bank. Earnings calculated on
the basis of return on asset (ROA), return on equity (ROE) and nil interest
margin (NIM) ratios.

Liquidity:

The banks have
to keep 16% SLR against their deposit with central bank, of which 4% average in
the form of CRR. The central bank—Bangladesh Bank (BB) keeps CRR in current
account and rest of SLR in cash and government securities. Islamic banks have
to keep 10% SLR and specialized banks are given exemption of keeping the SLR
but they have to keep 4% CRR.

CAMEL Rating:

Analyzing the
overall operational activities of all commercial and specialized banks; central bank, the regulatory authority of country’s
banking sector has ranked 6 ‘A-class’, 27 ‘B-class’, 8 ‘C-class’, 5 ‘D-class’
and 2 ‘E-class’ banks (24 Feb,2008), which was completed recently.

01. Eastern Bank Ltd.

02. Premier Bank Ltd.

03. The Trust Bank Ltd.

04. BRAC Bank Ltd.

05. Southeast Bank Ltd.

06. Mutual Trust Bank Ltd Ltd.

07. One Bank Ltd.
08. RAKUB.

09. . Habib Bank Ltd.

10. Woori Bank

11. Bank Alfalah Ltd.

12. National Bank of Pakistan

13 Mutual trust bank Ltd. Ltd. Ltd.

14. Dutch-Bangla Bank Ltd.

15. Bank Asia Ltd.

16. Mutual Trust Bank Ltd.

17. Mercantile Bank Ltd.

18. Jamuna Bank Ltd.

19. Mutual trust bank Ltd.

20. BASIC Bank Ltd.

21. Standard Bank Ltd.

22. HSBC

23.Islami Bank Bangladesh Ltd.

24. Pubali Bank Ltd.

25. Uttara Bank Ltd.

26.. National Bank Ltd.

27. The City Bank Ltd.

1. UCBL

2..Bangladesh
Shilpa rin sangstha

3. Al-Arafah Islami Bank Ltd.

4.. IFIC Bank Ltd.

5.. A B Bank Ltd.

6. First Security Bank Ltd.
7.Agrani
Bank, 8.Rupali Bank,

01.Bangladesh Krishi Bank,
 02.Bangladesh Shilpa Bank

3.Bangladesh krishi unnyan bank

04.Janata
Bank, 05.Sonali Bank,

1.The Oriental Bank.

2.

Central bank, the regulatory authority of country’s
banking sector has rated the positions of different banks based on the
performances of December–2007. The serial has been prepared on the basis of
credit and asset management performance as well as local banks first then
foreign banks.

Laws
that directly regulate the banking system of Bangladesh are: Bangladesh Bank
Order 1972; Bank Company Act, 1991; Bangladesh Bank (Nationalization) Order
1972; Companies Act 1913 and 1994; Deposit Insurance Order 1984; Bankruptcy Act
1997; Insolvency Act 1920; Financial Court Act 1990; Foreign Exchange
(Regulation) Act 1986; Financial Institutions Act 1993; Financial Institutions
Rules 1994; and Co-operative Societies Ordinance 1984.

Laws
that indirectly influence the banking system and for which references are made
in the Banking Company Act 1991 are: Code of Civil Procedure 1898; Code of
Criminal Procedure 1898; Evidence Act 1872; General Clauses Act 1897; Limitations
Act 1908; Negotiable Instruments Act 1881; Penal Code 1860; Trust Act 1882;
Transfer of Property Act; and Bangladesh Chartered Accountant Order 1973.

List
of Scheduled Banks in
Bangladesh

CHAPTER-2

Overview of Mutual Trust
Bank Ltd

Background

 Bangladesh economy has been experiencing a
rapid growth since the ‘90s. Industrial and agricultural development,
international trade, inflow of expatriate Bangladeshi workers’ remittance,
local and foreign investments in construction, communication, power, food
processing and service enterprises ushered in an era of economic activities.
Urbanization and lifestyle changes concurrent with the economic development
created a demand for banking products and services to support the new
initiatives as well as to make channel consumer investments in a profitable
manner. A group of highly acclaimed businessmen of the country grouped together
to respond to this need and established Mutual trust bank Limited in September
29, 1999.

 The
Company was incorporated on September 29, 1999 under the Companies Act 1994 as
a public limited company by shares for carrying out all kinds of banking
activities with Authorized Capital of Tk. 38, 00,000,000 divided into
38,000,000 ordinary shares of Tk.100 each. The Company was also issued
Certificate for Commencement of Business on the same day and was granted
license on October 05, 1999 by Bangladesh Bank under the Banking Companies Act
1991 and started its banking operation on October 24, 1999.

Operations
and Activities of MTBL

Company started its banking operation and
entitled to carry out the following types of banking business:

 (i)
All types of Commercial Banking Activities including Money Market operations.

(ii) Investment in Merchant Banking
Activities.

(iii) Investment in Company Activities.

(iv) Financiers, Promoters, Capitalists
etc.

(v) Financial Intermediary Services.

(vii) Any related Financial Services.

The Company (Bank) operates through its
Head Office at Dhaka and 36 branches and 5 SME Service Centers. The
Company/Bank carries out international business through a Global Network of
Foreign Correspondent Banks.

The Registered Office of the Bank is:

68, Dilkusha C/A, Dhaka 0140

Phone: 717 0138, 717 0139, 717 Fax:
880-2-956 9762,

SWIFT-MTBL BD DH

Telex: 632173 MTBL HO BJ

E-mail: MTBL@bangla.net

 The Company (Bank) operates
through its Head Office at Dhaka and 36 branches and 5 SME Service Centers. The
Company/Bank carries out international business through a Global Network of
Foreign Correspondent Banks.

In its
effort to provide Excellence in banking services, the Bank has launched fully
automated Phone Banking service, joined a countrywide shared ATM network and
has introduced a co-branded credit card. A process is also underway to provide
e-business facility to the bank’s clientele through Online and Home Banking
solutions

The profile of Mutual Trust Bank Ltd.

q  Bank’s Name: Mutual Trust Bank Limited

q  Established: 05 October, 1999 in Dhaka

q  Industry: Banking

q  Type: Private

q  First Capital: Tk. 10 million

q  Present Capital: Tk. 2450 million

q  Total reserve: Tk. 2518.1 million

q  Number of employee:
2270

q  Number of branch: 41

q  Product and service of MTBL:

Ø
Consumer
Credit Scheme

Ø
Special
Deposit Scheme

Ø
Monthly
Savings Scheme

Ø
Credit Card

·
Visa

·
Master
Card

Ø
MTBL
ATM Service

Ø
Western
Union Money Transfer

Ø
MTBL
housing loan

q  Head office: 68, Dilkusha commercial area. Dhaka.-1000

q  Slogan :  You can bank
on us

q  SWIFT (Society for Worldwide Inter-bank Financial
Telecommunication):  MTBL BD DH

q  Telephone   :
717 0138, 717 0139, 717 0140

q  Fax :
880-2-956 9762

q  Logo:

q  Telex :
632173 MTBL HO BJ

q  E-mail  : MTBL@bangla.net

q  Web
Page: http://www.mutualtrustbank.com/

The Mission

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

The Vision

To be
the bank of 1^st choice by creating exceptional value for our
clients, investors and employees.

The Values

• Customer Focus
• Respect for the
  individual
• Responsible
  Citizenship

MTBL’s Objectives

q  By using of latest version of technology
to serve the customer as quickly and better way.

q  By better relationship between the bank
and the customer to take participation in the growing economic society.

q  By using of better equity to certain the
highest profit and provide it to the customer.

q  To hold the bank’s performance and
continue it.

q  By effective banking we can make strong
position in the competition banking market.

MTBL’s products and services

Deposit
Schemes of MTBL:

Mutual trust bank Limited offers mainly various types of deposit
schemes, those are:

Mutual trust bank Ltd. Offer
following types of deposit account:

a.
Consumer
Banking Products.

b.
Customize
products

MTBL Consumer Banking Products are:

» Brick by Brick Savings Scheme

» Monthly Benefit Plan

» Save Everyday Plan

» Children Education Plan

» Consumer Credit Scheme

» Best Investment Plan

Customized Products are:

» MTBL Unique Savings Plan

» MTBL Triple Saver Plan

» MTBL Millionaire Plan

» MTBL Double Saver Plan

MTBL Consumer Banking
Products in details:

# Brick by Brick Savings
Scheme:

 Brick by Brick is a
unique monthly savings plan which builds up over the years and provides a lump
sum amount at maturity. The
savings periods are 5, 8 and 10 years. Monthly instalments are Tk. 500/=,
1,000/=, 2,000/=, 5,000/= and thereafter in multiples of Tk. 500. You will have
to open an account in the bank from which a standing instruction will be given
to transfer the monthly deposit in the scheme’s account and you must ensure
that your account has sufficient balance within the 10th of each month.

This plan is so flexible that at maturity you can earn a
handsome amount depending on the size of installment amount of savings and
tenure.

Rules & Regulation

v  You have to open an account in the bank
from which a standing instruction will be given to transfer the monthly deposit
in the scheme’s account and you must ensure that your account has sufficient
balance within the 20^th of each month.

v   If
the 20^th of the month is a holiday, you should deposit that amount
by the next working day. If you can not deposit the amount before the due time,
the bank holds the penalty Tk. 25 per month.

v  Unable to pay 3 consecutive installments
will end up with a closing account.

v  The maturity value is an indicative
figure. Tax/Excise Duty will be deducted as per govt. rules. Depositor enjoys
90% Loan Advantage on his deposited amount but the minimum balance must be Tk.
25000/-.

Monthly schemes or deposits:

#
MTBL Monthly Benefit Plan:

This plan offers you to generate monthly income out of your
deposit. It has been designed to help and assist conscious savers from all
strata of the society. The minimum deposit is Tk. 50,000/= or in multiples
thereof. There is no upper limit and this plan is for a 3 (three) & 5
(five) years term that cannot be changed subsequently.You will require opening
a savings/current account. Monthly income will be credited to your account.

Rules & Regulations

v  Any Bangladeshi resident can open this
account individually and jointly and the maturity term of the scheme is 3 and 5
years.

v  If the depositor withdraws the money
before maturity then the interest will be given according to the rate of
savings account.

v  If the scheme holder dies then the nominee
will receive the money with the proper interest.

A few examples of deposit and income are
given below:

# Saves Everyday Plan:

The
primary advantage of this plan is that you are absolutely free to choose your
own time for depositing money into this account. You can deposit daily, weekly
or monthly. The choice is yours, but the transactions will have to be within
the Bank’s transaction hour.

This
is a 5 year plan and you will be required to open the account with an initial
deposit of Tk. 2500/= only. MTBL offers very attractive interest rate which is
accrued in this account on a daily basis.

# MTBL Education Plan

This plan allows parents to save the money for 4/7/9/12 years
which helps their children’s education. The parent can deposit any amount of
money at any day of the month. The interest rate is very lucrative and the Bank
offers substantially more than the prevailing savings rate.

Rules & Regulation

v  Any Bangladeshi resident can open this
account individually and jointly.

v  The parents can open the account on behalf
of the minor and in this case they have to maintain the appropriate rules.

v   If
the 20^th of the month is a holiday, you should deposit that amount
by the next working day.

v  Unable to pay 3 consecutive installments
will end up with a closing account.

v  If the scheme holder dies then the nominee
will receive the money with the proper interest.

Monthly schemes or deposits:

#Consumer Credit Scheme:

In order to make a significant contribution in the living
standards of the people of medium and low income category, MTBL has introduced
a scheme called “Consumer Credit Scheme”. With a view to materialize the dreams
of those who are unable to make one time investment from their own savings, one
can now afford to buy necessary household equipments and thus improve the
standard of living. All sorts of household durables e g. Television,
Refrigerators, Computers, Air Conditioners, Video Cameras, Washing/ Drying
Machines and Furniture’s are allowed under this scheme. One can buy Motorcycle
too under this programme.

# MTBL Best Investment plan:

Best Investment Plan offers two separate and convenient term
deposit periods for 4 years and 6 years respectively. Best Invest Plan is
available in units worth Tk.50,000/- each. You will invest Tk.10,000/- as down
payment for purchasing 1 (one) unit and the Bank will provide loan for
Tk.40,000/-. The customer also has the option to buy units in multiples of Tk.
50,000/- but maximum up to Tk. 1, 00, 00,000/- (one crore).

This is a unique high return plan catering to all income groups.

MTBL Customized
Banking Products in details:

01. MTBL Double Saver Plan

02. MTBL Triple Saver Plan

03. MTBL Millionaire Plan

04. MTBL Unique Savings Plan

MTBL’s Double Saver Plan

MTBL Double Saver Plan offers you a one time savings scheme, which
will provide you double the amount of your deposit after seven (7) years. You
will receive a handsome amount at maturity.

If you are an individual or if your institution is an NGO or an
Educational institution or a Trust or Society or any other institution, you may
invest your savings in this scheme with a minimum deposit of Tk. 10,000/- for
seven (7) years with no limit for maximum amount. At maturity you will get
double of your deposited amount along with a gift item.

If the depositor withdraws the deposited amount before one year
and also before maturity then the depositor is not entitled to receive any
interest other than the principle amount, where as the withdrawal time exceeds one
year but before the maturity then the depositor receive the amount at 6.25% interest
rate.

MTBL Triple Saver Plan

MTBL Triple Saver Plan offers you a one time savings scheme, which
will provide you three times of your deposit after eleven (11) years. You will
receive a big amount at maturity.

If you are an individual or if your institution is an NGO or an
Educational institution or a Trust or Society or any other institution, you may
invest your savings in this scheme with a minimum deposit of Tk. 10,000/- for
eleven (11) years with no limit for maximum amount. At maturity you will get
three times of your deposited amount along with a gift item.

If the depositor withdraws the deposited amount before one year
and also before maturity then the depositor is not entitled to receive any
interest other than the principle amount, where as the withdrawal time exceeds
one year but before the maturity then the depositor receive the amount at 6.25%
interest rate.

MTBL Millionaire Plan

A depositor will deposit a certain amount of money per month for a
certain period of time and after getting the maturity the depositor is entitled
to receive 1 million taka. For example,

MTBL Unique Savings Plan

Unique Savings Plan offers you to deposit any amount of your
choice but not less than Tk. 500/- for 3/4/5 years. This is a high income plan
with withdrawal facilities. The Withdrawal facility will help you at the time
of any emergency. You can withdraw 50% of the deposited balance for once a month.
After maturity period the Bank cut tax and excise duty as per government
rules.The depositor can found loan from 90% deposit amount but the minimum
balance should have Tk. 25000/-

Personal
Banking

Following Personal Banking Products are available with:

a.
Current
Account

b.
Saving
Account

c.
Short
Term Deposit Account

d.
Fixed
Deposit Account.

#Current Account

A Current Account is an account, which is generally used for
business purpose. Clients enjoy maximum flexibility with this account. This
account offers the following services:

ü  Minimum balance fee 1500

ü  Any number of transactions a day

ü  Any branch banking facility (this facility
is available with any type of account)

ü  Phone banking (available only with few
branches)

ü  Statement of account at any desired time

ü  The current account Interest Rate is
0.00%,

ü  Account can be: Individual Account, joint
Account, Proprietor Ship Account, Limited Company Account

Nature of Current
Accounts (CD)

»Here the account holder withdraws money at any time without
giving any notification and interest is not given for the deposited amount in
current account.

» Current account can be open by any individual or joint or any
name of proprietorship business, private limited company or public limited
company, association clubs, society’s

trusts etc. Usually businessmen open the account.

» Mutual trust bank Ltd. Takes service charge Tk 500/- half yearly
on each account irrespective of balance.

» Account closing charge Tk. 500/-

» Keep the minimum balance of Tk. 1500/-

# Savings Account

Savings account is a type of account, which offers the client a
certain rate of interest. This rate of interest is subject to some constraints.
These constraints are:

Account can be used for only transaction purposes and not for
business purposes. Clients can draw a maximum number of two cheques per week;
exceeding this number will forfeit the interest for the month. If withdrawing
amount is more than one fourth of the total deposit then the client undergo a
loss of profit for that specific month. Services that offered to this account
are almost similar to that of current account. The savings accounts/deposits
Interest Rate is 6.25% for general, 6.50% for wage earners

Nature of Savings Bank Deposit Account (SB)

» To maintain smooth and certain life in future savings account is
very suitable for middle class group.

» The attributes of savings account are: 1000/-is the minimum
amount of initial deposit.

» Clint cannot withdraw the money more then twice a week,

» The profit rate is 6.25% against savings money.

» SB deposit attracts interest.

» Client is not at large to withdraw deposit without prior notice.

» Interest is suspended if withdrawal rule is broken.

» Withdrawal rule is consisted of number of withdrawal per week/
month and percentage of balance.

»Account closing charge is Tk. 100/-

» No charge up to average balance of Tk.5000/-

»Mutual trust bank Ltd. Takes service charge Tk 200/- half yearly
on each account incase of average balance more than Tk.5000/-.

#Short
Term Deposit Account

The purpose of this account is clear from
its very name. Short Term Deposit Account is a mixture of flexibility and a
return on deposit like savings account. This type of account holder enjoys the
privilege of both the current and savings account. The interest rate available
to this type of account holder is lower than that of the savings account. The
short term deposits Interest Rate is 7.0%

Nature/Attributes of Short Term Deposit Account (STD)

» It’s a certain period deposited system, which is not repayable
before the maturity date of the fixed period. Mutual Trusty Bank offers higher
rates of profit on such deposits.

» Usually customers are allowed to open this account for a certain
period and the rate of profit in accordance’s with the terms of the deposits.
The features of MTBL as follows

» By nature this deposit is not featured with issuance of cheque
book.

» Depositor requires serve 7 days prior notice to transfer fund to
his checking deposit account.

» STD account allows interest on daily product basis.

» Mutual trust bank Ltd. Takes service charge Tk 500/- half yearly
on each account irrespective of balance.

» Account closing charge Tk. 500/-

» 7.00% profit rate against STD

» No restriction over withdrawal of money

» Tk. 5000/- is the minimum balance.

#Fixed Deposit Account

Fixed deposit is one, which is repayable after the expiry of a
predetermined period fixed `by him. Any
one in any time open fixed deposit account to deposit any amount.Its time
period is 1,3,6,12,24 and above 24 month, this product is very much
popular in banking arena for surplus spending unit. . Hence, it is a popularly
known as ‘Time Deposit’ or ‘Time Liabilities”. This deposit is one way
trafficking system i.e. deposit is received for once for specific period and
refunded with up to date interest on maturity. These deposits are not repayable
on demand but they are withdraw able subject to a period of notice Premature
encashment may resultant loss of interest If the depositor wanted to Brock up
his or her deposit account before maturity date and before one year that moment
he or she could not found any kind of interest, if its time period should have
one year but before maturity date that moment depositor could found in interest
rat like as savings account .e.g. 6.25%. After maturity period the Bank cut tax
and excise duty. The depositor can found loan from 90% deposit amount

Different types of loans
provided by MTBL

These are loans which have a specific term for repayment as
specified in the loan agreement. Example: Loan (General), Housing Loan, Car
Loan, small Business Loan, Personal Loan, House Building Loan etc.

Loan (General)

In case of loan general, the banker advances a lump sum for a
certain period at an agreed rate of interest. The entire amount is paid on an
occasion either in cash or by credit in his/her current account which he/she
can draw at any time. The interest is charged for the full amount sanctioned
whether he/she withdraws the money from his/her account or not. The loan may be
repaid in monthly installments or at the expiry of a certain period.

Housing Loan

A large amount of money needed to construct a house or purchase an
apartment. It is not possible to of all people to construct a house by only own
income sources. Especially this problem largely faces by middle level and fixed
income people. To solve this problem, MTBL’s offer Housing Loan with easy
repayment condition and less interest rate.

Detail information of
Housing Loan:

Purpose of Loan:

To help service holders, self-employed
persons, businessmen, professionals and also those who have the capability to
repay loan for purchase of flats/house/construct buildings and thereby improve
their quality of life.

To contribute to the reduction of acute
housing problems of the country.

To help the prospective clients get
housing loans on easy terms and without any hardies.

To strengthen MTBL.

To contribute towards improvement of socio
economic condition of the society.

Housing Loan Product of Mutual Trust Bank
Limited:

a) Flat purchase

b) Own Construction

c) House Extension

d) Readymade house purchase

Target Group:

People of all sections of the society who are desirous of purchasing
flats/house/constructing buildings/flats on land owned through registered
purchase/lease from the government/any other government approved authority and
who have the capacity to repay the loans within the validity period of the loan
out of the income generated by the flats/house and also their other sources of
income, may be the ideal customers.

Designated Branches:

Gulsan Branch.

Dhanmondi Branch.

Mirpur Branch.

Uttara Branch.

Maximum size of loan:

Loan for amount exceeding Tk.5.00 lac to the maximum of Tk.50.00
lac may be considered under the Housing Loan Scheme.

Debt: Equity

For purchasing flats/houses:

i.
For
loan up to Tk.20.00 lac debt equity ratio will be 75:25.

ii.
For
loan above Tk.20.00 lac debt equity ratio will be 70:30.

b) For construction on own land:

Minimum 10% cash involvement excluding value of land.

Repayment period:

The loan is to be repaid by monthly equal
installments including interest within the period ranging from 5 years to 15
years (including grace period) on the size of loan, income generation from the
flats/houses and other sources of income of the customers.

Grace period:

For purchase of flat(s) the client may
enjoy maximum 6 months grace period from the date of availing of the loan
depending on the merit of the case. Repayment will start from the 7^th
month of availing of the loan and entire loan will be adjusted the validity
period.

For construction of building the client
may enjoy maximum 12 months grace period from the date of availing of the loan
within which construction is to be completed. Repayment will be adjusted within
the validity period.

Interest and Other Charge:

Interest: 13% p.a. (to be charged
annually) subject to change with market situation.

No processing fee will be charged.

Documentation charge: @ 1% of loan amount
to be realized on acceptance of loan.

Interest will be charged on monthly
reducing balances after realization of monthly installments.

5% rebate will be allowed on total amount
of interest charged at the time of f8inal adjustment of an account wherein no
break chain in repayment of installment will occur.

Security:

a) Registered mortgage of land and
building/flat(s) with proportionate land.

b) Personal guarantee of person(s) acceptable
to the bank (where

c) Applicable).

Necessary Document for
Housing Loan:

The following papers are to
be submitted while applying for loan:

  For
Employed-

i.
Employment
certificate/contract paper.

ii.
Pay
slip for last 3 months (showing all deduction).

iii.
Bio-Data
(income-earner).

iv.
Bank
statement for the last 12 months.

v.
If
applicant has any other income, proof of that may be given (e.g. Rental
agreement).

vi.
TIN
Certificate.

vii.
Letter
of Consent from the guarantor (if required).

  For
Self Employed-

i.
Statement
of business, detail such as product/clients etc.

ii.
Income
Tax assessment orders/returns for 3 years.

iii.
Audited
Profit & loss Account and Balance Sheet for last 3 years.

iv.
Self-assessed
Profit & loss Account for last 3 years (for Proprietorship Firm).

v.
Bank
Statement of self and business for last 1 year.

vi.
Bio-Data.

vii.
If
applicant has any other income, proof of that may be given (e.g. Rental
agreement).

viii.
TIN
Certificate.

ix.
Letter
of Consent from the guarantor (if required)

  For
Private Land-

i.
Ownership
deed (original).

ii.
Baya
deed (original/certified/photocopy).

iii.
Recent
Survey Report (i.e. Math parcha duly attested).

iv.
CS/RSSA
Parcha.

v.
Mutation
ParchaKhatian.

vi.
Up to
date “Non-Encumbrance Certificate” for 13 years.

vii.
Approved
plan and approval letter of Rajuk Authority.

viii.
Detailed
estimate of the cost of construction prepared by a qualified Engineer/Architect
at current market rates.

ix.
Photograph
of the project.

  For
Leasehold Land-

i.
Ownership
deed/Lease deed.

ii.
Baya
deed (original/certified/photocopy).

iii.
Mutation
Letter from relevant govt. office.

iv.
Up to
date Land Tax Receipt.

v.
Permission
from the lessor to mortgage (if required).

vi.
Approved
plan and approval letter of Rajuk Authority.

vii.
Detailed
estimate of the cost of construction prepared by a qualified Engineer/Architect
at current market rates.

viii.
Photograph
of the project.

  Other
Document for Flat purchase:

i.
Deed
of agreement

ii.
Money
Receipts

iii.
Builder’s
Letter

iv.
Reg.
Sale Deed

Important aspects:

a) Title to the land and building must be
clean.

b) Construction of the building must be made
strictly in accordance with the plan approved by the appropriate authority.

c) Cost estimation must be prepared by a
qualified engineer (civil/architect which shall be verified by the bank’s
Engineer.

d) The borrower(s) shall allow the bank
officials to inspect the flat(s)/house(s)/building at any time.

e) The borrower(s) shall immediately inform
bank if he/she/her/their guarantor(s) changes address or profession.

f) The borrower will not sell, gift or
transfer the possession/ownership of the flat(s)/house(s) before full
adjustment of the loan or without prior permission from the bank.

g) The borrowers will give a declaration that
he/she/they have/has not availed and will not avail of any credit facility from
any bank/financial institution against mortgage or otherwise of the property
related to the loan.

h) Repayment of loan shall be made on equated
monthly installment (EMI) basis.

i)
The
loan will be governed according to the rules and procedures of MTBL.

Procedures of sanction of loan: On receipt of application along
with all required papers/documents, the branch Manager will verify the
genuineness of the information of the application by deputing an inspecting
official of the bank. He will also ensure genuineness of the same by applying
his best prudence. If all the papers are found all right and genuine and he is
fully satisfied about the genuineness of the applicant, the application will be
processed. Complete proposal will be prepared in duplicate, all necessary
papers/documents including up to date satisfactory CIB report must be collected
before disbursement of loan. If the application merits consideration, original
proposal will be sent by the designated branch with recommendation of the
Branch Manager to Housing Loan Unit Head office for sanction.

Disbursement of Loan:

a) On receipt of sanction letter, branch will
complete full documentation as per the terms and conditions of the sanction
letter and on the basis of other usual terms and conditions under the
supervision of bank’s legal adviser. On completion of documentation a
certificate of completion of documentation shall be sent by the branch to the
Housing Loan Unit Head Office. Before completion of full documentation branch
must not disburse the loan.

Usual Charge documents:

1. D.P. Note along with
   Revival letter.
2. Letter of Continuity.
3. Letter of arrangement
4. Letter of disbursement
5. Letter of guarantee as
   applicable
6. Letter of Undertaking.
7. Any other charge
   documents as per sanction advice.

Usual mortgage documents:

1. Memorandum of deposit
   of Title Deed.
2. Deed of Mortgage
   (where applicable).
3. Irrevocable General
   Power of Attorney (to be notarized).

Other formalities:

1. All documentation
   formalities must be completed in consultation with the legal department of
   Head Office.
2. Letter of authority to
   debit the account with incidental and other charges.
3. Copy of up to date
   rent receipt, municipal holding tax receipt, parcha, khatians, mutation,
   title deed, baya deed, NEC and all other necessary papers/documents must
   be obtained before sending the proposal.
4. Original Title deed
   and relevant documents/papers to be obtained before disbursement of loan.

b) On Completion of full documentation, branch shall ensure
utilization of the clients’ equity portion. For purchasing flat(s)/house(s)
sold and against registration of the flat(s) in the name of the client SRO
token of the registration shall be delivered to the bank officials who will
remain present at the time of registration. Before issuance of pay order the
borrower shall create mortgage of the property against which the loan has been
sanctioned. For disbursement of loan for construction of house, subject to
completion of full documentation including mortgage, disbursement of loan shall
be made in phases. Client’s equity in every stage of construction based on
approved estimated cost shall be ensured by the branch, where after loan
portion to be disbursed. In the above manner loan will be disbursed in 4 equal
installments for completion of construction on obtainment of field report
including photographs.

c) The loan will be disbursed in the form of “Term Loan” separate
ledger shall be used for this purpose.

Loan administration and
follow up:

The loan will be administered by the in-charge of Housing Loan
Unit to be setup in the Head Office. For an effective administration and follow
up, two officers shall be given exclusive responsibility. The branch will have
proper end use supervision of the loan and regular repayment. If any loan
installment is defaulted, the branch manager must immediately contact the
borrower personally or by letter/over phone for regularization of the loan. If
the borrower fails to pay any two installments, the matter shall immediately be
brought to the notice of the guarantor (if any) by letter/personal contact/over
phone for realization of all arrear installments. In the event of the failure
of the borrower to pay three installment consecutively. The matter must be
brought to the notice of the in-charge of Housing Loan Unit, Head Office.

Car Loan:

Car Loan

For car loan borrower has to apply for the loan in prescribed bank
application form. In the application form borrower must mention which vehicle
he wants to buy and what’s the quantity. Borrower also has to provide detail
price list of the vehicle, insurance paper for each vehicle, possible repayment
planning of the loan; list of collateral, list of hypothecation of securities and
other necessary papers depends on clients and number of vehicles. After getting
all necessary papers and field inspection branch makes a proposal for the loan
and sends it to the head office. Head Officers then again checks the necessary
papers and do the field inspection. After inspection if Head Office thinks that
for sanction of the loan they need more papers and securities, borrower has to
provide those papers. Branches usually do not have any authority to sanction
any amount of loan amount branch only disburse the amount and do the regular
monitoring whether the vehicle is purchased, is they quotation match with the
real one, vehicle is in the route and more importantly borrower is repaying the
installment regularly.

Detail
Information of Car Loan:

Name
and address of the borrower & company

Nature
of limit- Loan (Transport)

Purpose
of the Loan- To procure vehicle for industrial or local transport.

Amount
of the limit- the loan amount

Margin-
50% cash against each vehicle

Debt-Equity
ratio- 50:50 (Bank cash 50% and Party cash 50%)

Validity-
No of months (Calculated by the bank how many months it will take to repay the
loan against each vehicle) from the date of disbursement against each vehicle.

Rate
of interest- 16% p.a. at quarterly rest, subject to change according to market
situation.

Mode
of disbursement- The loan to be preferably disbursed after getting of vehicle.
If advance payment is considered as sine-qua-non the payment to be made direct
to respective seller through payment order after realizing party’s full equity
with instruction to deliver the vehicle to the bank’s representative. All other
costs insurance premium, route permit etc. to be borne by the borrower. Sale
receipt to be issued in the name of bank account party.

Mode
of repayment- From daily bus fare proceeds & minimum of certain amount of
money against each vehicle & balance if any lump sump amount within
validity. Repayment starts from the second months from the date of disbursement
of loan against each vehicle.

Security-

Usually
bank prefers pledge of FDR (or any other financial obligation that the party
has in the bank) against each vehicle (Minimum Tk.1.00 lac) and also additional
FDR for certain amount of money.

Hypothecation
of vehicles duly registered in the name of the bank (1^st party) and
the borrower under supervision of bank official duly complying all the
formalities of registration with motor vehicle department with comprehensive
insurance cover in the name of bank and borrower at borrower’s cost.

If
the client default payment of two consecutive installments, the loan will be
recalled with up to date interest immediately duly notifying.

The
bank official will inspect the vehicle at every month interval to see that the
vehicles are on route.

Excess
over limit is strictly prohibited even after accrual of quarterly interest.

Balance
confirmation must be obtained regularly on the 30^th June and 30^th
December of each calendar year.

Before
disbursement borrower has to sign in the sanction letter of the Head Office to
declare that he is accepting the term and condition.

Bank
has right to cancel, alter, amend the terms and condition.

The
borrower must avail the loan two months from the date of communication for
sanction; otherwise the loan will be cancelled.

Necessary Documents for Car
Loan:

  CIB (Customer Information Beauro) response
form.

  Party’s application

  CIB inquiry form 1, 2 and 3.

  D.P. Note

  Letter of arrangement

  Letter of disbursement

  Letter of authority

  Letter of hypothecation

  Letter of lien

Small Business Loan Scheme:

Small businessman take place large portion in our country. More of
them are honest, energetic and hardy. In the absence of sufficient capital more
of them cannot manage their business properly. They have not sufficient asset
to make a security against loan, as a result they are failure to take a loan
from bank or other financial assistance institution. If a loan give to them
with easy terms and condition then this energetic small businessman not only
manage and increase their business properly but also they take important role
in development of our country. To meet up this purpose, MTBL start Small
Business Loan scheme.

Detail Information about
Small business Loan scheme:

Small
Business Loan Scheme are available for the following person:

o
Applicant
must have the small business experience for at least 5 years with small
capital.

o
Applicant
takes loan from a branch of MTBL only, if the applicant is the current account
holder of this branch of MTBL.

o
The
applicant business must be profitable.

Amount
of loan: Under this scheme any person or any institution takes loan for maximum
Tk.5.00 lac for proper management or for expansion of business.

Interest
and Other Charge:

§
-Interest:
16% annually.

§
-Application
Fee: Tk.500.

Mode
of Repayment:

The
loan amount with interest must be repaid within 3 to 5 years by equal monthly
installment.

Repayment
period of loan are started at second month of loan taken.

By
monthly equal installment repayment of the installment will start from the 2^nd
month of availing of the loan. Monthly installment has to be deposited by 10^th
of each following month. If any three installments are not paid, penal interest
at the rate of 1% per month will be charge on defaulted amount of loan.

Security:

Hypothecation
of Stock of the shop.

Simple
deposit of original title deed of the ownership of the shop or possession
deed/agreement or lease deed of agreement with personal guarantee of the
landlord in case of rented premises.

Equal
number of post dated cheque in which each covering all installments in advance.

Personal
guarantee on Guarantee bond of Tk.150/- Non-Judicial stamp of Guarantor.

Any
other security acceptable by the bank.

Undertaking
from the borrower to pay monthly installment regularly in time in bank’s
prescribed form.

Letter
of authority to debit the account’s of the borrower with incidental and other
bank charges to be obtained from the borrower.

Failure
of the borrower to deposit monthly installment within 10^th day of
the following month will be treated as default.

During
the period of loan entire dues with full interest shall have to be paid by the
borrower.

Monthly
stock report duly filled in by the borrower and signed by an officer of the
branch after physical verification to be obtained.

The
borrower will neither sell nor transfer the ownership of the business/shop
until bank’s dues are fully paid and without prior written permission from the
bank.

The
borrower will allow the bank official to inspect the shop/business at any time.

The
borrower will inform the bank immediately of any change in his/her/their
address (including business address) or of the guarantor or his/her/their
profession.

The
bank reserve the right to recall the loan wholly or partially or cancel at any
time without assigning any reason whatsoever.

All
the terms and conditions of the advance should be informed to the party and
acceptance in writing to abide by the terms and conditions to be obtained from
the borrower.

Declaration:
Following declaration must be made by the applicant of the loan-

i.
The
information made in the application form of loan is true.

ii.
I
have not taken any loan for such purpose from any other bank or financial
institution.

iii.
I
have gone through the “Small Business Loan” Scheme regulation of MTBL and agree
to abide by the rules.

iv.
I
shall spend the loan amount for the purpose for which loan has been applied.

v.
I
shall pay the monthly installment fixed by the bank within 10^th of
each following month.

vi.
I
shall inform the bank immediately if my guarantor or I change address or
profession.

Necessary Charge/Other
documents For SBLS:

v  D.P. Note

v  Letter of arrangement

v  Letter of disbursement

v  Letter of hypothecation

v  Valid Trade License

v  Guarantee Bond on Tk.150/- Non-Judici8al
stamp as per bank’s prescribed format from two guarantors acceptable to the
bank.

v  Applicant declaration on Non-Judicial
stamp paper of adequate value to the effect that as long as applicant will have
liability with the bank and they will not sell the ownership/possession of the
shop to any body. In the event of their failure to pay bank’s liability they shall
hand over the physical possession of the shop to the bank, which the bank will
be able to dispose off in suitable manner. Such declaration must be accepted
and authenticated by the owner of the shop (original lessor) by separate letter
addressed to the Manager of the branch.

Personal Loan scheme

Fixed income employee’s of various firm or company need urgently
financial assistance for the following purpose-

  Marriage purpose

  Education purpose

  Advance Against Salary

  Education Loan

  Travel Loan

Especially meet up this financing by own income source is very
difficult for middle class people. To solving these problems MTBL introduce
Personal Loan Scheme for Salaried person.

Detail information Small
Business Loan Scheme:

  Personal Loan Scheme are available for the
following person:

a) Government

b) Semi Government

c) Corporation

d) Bank

e) Insurance company

f) Teacher of school, college or university

g) Multinational company

h) Any firm or company which is acceptable by
bank.

  Amount of Loan:

Maximum
Tk.1,00,000/-

  Interest and other charges:

Interest:
16%annually.

Penal
Interest: Penal interest @ 1% per month will be charge on defaulted amount.

Service
charge: 1% of given amount of loan.

Application
Fee: Tk.500.

  Mode of Repayment: By monthly equal
installment repayment of the installment will start from the 4^th
month of availing of the loan. Monthly installment has to be deposited by 10^th
of each following month. If any three installments are not paid, penal interest
will be charged.

  Mode of Disbursement:

The
loan amount will be credited to the borrower’s SB A/C number which is
maintained with the branch by debiting his loan account.

Before
disbursement the party shall have to pay an amount as service charge and as
risk fund which are not refundable.

  Security:

Equal
number of post dated cheque in which each covering all installments in advance.

Guarantee
bond in Bank’s prescribed format from personal guarantor on Tk.150/-
Non-Judicial Stamp.

Letter
of undertaking of the borrower in the bank prescribed form to pay monthly
installment regularly in time.

Letter
of authority to mark lien on the provident fund and gratuity of the borrower.

Letter
of confirmation from disbursing authority.

  Service Charge @ 1% of the amount of loan
sanctioned to be recovered only at the time of disbursement.

  The borrower will inform the bank if
he/she or his/her guarantor changes address or profession.

  The loan will be conducted in strict
adherence to the norms circulars/instruction by Head Office.

  All the terms and conditions shall have to
be informed to the borrower in writing and his/her acceptance to abide by the
terms and conditions to be obtained.

  Employer’s certificate: If loan taken by
any service holder then the employers certificate are needed. In employer’s
certificate form employer certify employee present position and net monthly
salary after all deduction in the organization. Employers also certify that the
information furnished by the applicant is correct and the loan application may
be considered favorably.

  Declaration: Following declaration must be
made by the applicant of the loan-

vii.
The
information made in the application form of loan is true.

viii.
I
have not taken any loan for such purpose from any other bank or financial
institution.

ix.
I
have gone through the “Small Business Loan” Scheme regulation of NCCBL and
agree to abide by the rules.

x.
I
shall spend the loan amount for the purpose for which loan has been applied.

xi.
I
shall pay the monthly installment fixed by the bank within 10^th of
each following month.

xii.
I
shall inform the bank immediately if my guarantor or I change address or
profession.

Necessary Charge/Other
documents for Personal Loan Scheme:

Ø  D.P. Note

Ø  Letter of arrangement

Ø  Letter of disbursement

Ø  Letter of guarantee

Ø  Letter of authority to debit the account’s
of the borrower with incidental and other charges.

House Repairing/Renovation
Loan Scheme

The ownership of a house/building/flat comes from purchasing or by
heir. A huge amount of fund is needed at one time for repairing them to make
suitable for live or for modernization or renovation. The owner’s faces
difficult financial problems to invest their fund in these sectors. MTBL is
trying to solve these difficult problems by introducing “House
Repairing/Renovation Loan Scheme”.

Detail information of House
Repairing/Renovation Loan Scheme:

House
Repairing/Renovation Loan Scheme are available for the following person:

a) The original owners of a house whose age’s
between 30 to 50 years.

b) Who are capable to repayment of loan?

c) The house for which repairing or
renovation loan sought are not older than 20 years.

d) Any employee whose salaries are pay from
their employer.

e) Who has an account number in the loan
providing branch?

Amount
of loan: By matching monthly income a person get maximum Tk.5.00 lac from these
loans.

Interest
and Other charges:

Interest:
16% annually.

Processing
Fee: Processing fee @ 1% of the amount of loan sanctioned to be recovered only
at the time of disbursement of the loan.

Application
Fee: Tk.500 (unreturned)

Penal
Interest: Penal interest @ 1% per month will be charge on defaulted amount.

Mode
of Disbursement: The loan amount will be disbursed in 4 equal installments.
Second installment will be released after being fully satisfied that the first
installment has been properly utilized and so on.

Mode
of Repayment: By monthly equal installment repayment of the installment will
start from the 4^th month of availing of the loan. Monthly
installment has to be deposited by 10^th of each following month. If
any three installments are not paid, penal interest will be charged.

Guarantor:
If the applicant is married man then his wife is guarantor for loan. On the
other hand, if the applicant is married women then her husband is the guarantor
for loan. In case of unmarried person, it is necessary to take guarantee from
two people whose financial capabilities are good.

Security:

Equitable
mortgage by way of simple deposit of original title deed with chain of
documents of the property owned by the applicant which value assessed by the
Manager of the branch.

Guarantee
bond in Bank’s prescribed format from guarantor on Tk.150/- Non-Judicial Stamp.

Personal
guarantee of spouse of the borrower (for married person).

Letter
of undertaking of the borrower in the bank prescribed form to pay monthly
installment regularly in time.

Equal
number of post dated cheque in which each covering all installments in advance.

Employer’s
certificate: If loan taken by any service holder then the employers certificate
are needed. In employer’s certificate form employer certify employee present
position and net monthly salary after all deduction in the organization.
Employers also certify that the information furnished by the applicant is
correct and the loan application may be considered favorably.

Processing
fee @ 1% of the amount of loan sanctioned to be recovered only at the time of
disbursement of the loan.

Up to
date rent receipt, Municipal tax receipt, Parch a, Mutation, approved plan with
letter approved the plan with letter approving the plan of the concerned
authority, if applicable to obtained.

Memorandum
of deposit of title deed along with original title deed and chain of documents
relating to above mentioned property to be obtained.

Up to
date non-encumbrance certificate to be obtained.

A
certificate from Bank does panel/approved lawyer to the effect that the title of
property is in order in all respect to be obtained.

Land
clearance certificate from competent authority to the effect that the landed
property is free from govt. acquisition to be obtained.

The
repairing/renovation work must be done within the premise as per estimate
submitted by the party with the application.

An
undertaking to be obtained from the borrower to the effect that:

He/she
will repay the bank’s loan even if there is any loss of property due to natural
calamity since there is any loss of property due to natural calamity since
there is no provision for insurance cover.

He/she
will allow the bank official to inspect the site at any time.

He/she
will pay the monthly installments within 10^th day of every following
month.

He/she
will pay the bank’s dues including interest in full even if the house or
building is not completed within the sanctioned loan amount due to increase of
price of materials or any other reason whatsoever.

He/she
will neither gift, sell nor transfer the ownership of the building until bank’s
dues are fully paid and without prior permission from the bank.

He/she
will inform the bank immediately if the guarantor changes address or
profession.

He/she
will utilize the loan amount for repairing/renovation work within the premises
as per estimate submitted by the applicant.

The
borrower will give a declaration that He/she has not availed and shall not
avail of any credit facility from any bank/financial institution against
mortgage or other wise encumbrance of the land and the building.

The
loan will be conducted in strict adherence to the norms circulated by the
related circulars instruction of Head Office.

All
the terms and conditions shall be informed to the borrower in writing and
his/her acceptance to abide by the terms and conditions to be obtained.

Declaration:

Following declaration must be made by the
applicant of the loan:

a) The information made in the application
form of loan is true.

b) I have not taken any loan for house
repairing/renovation from any other bank or financial institution.

c) I have gone through the “House
Repairing/Renovation Loan Scheme” regulation of NCCBL and agree to abide by the
rules.

d) I shall spend the loan amount for
Repairing/Renovation of his own house and shall not sell, gift or in any way
transfer the ownership to anybody until the loan is fully repaid or without
prior permission from the bank.

e) I shall maintain the building property.

f) I shall allow the bank officials to
inspect the house any time.

g) I shall inform the bank immediately in
case of any change in my address (including business address) or of the
guarantor or profession.

Necessary Charge/Other
documents For House Repairing/Renovation Loan Scheme:

ü  D.P. Note

ü  Letter of arrangement

ü  Letter of disbursement

ü  Letter of hypothecation

ü  Letter of authority to debit the account’s
of the borrower with incidental and other charges.

The Business view of MTBL

Side by side of serving the customer we can also put our
activities to improve the society and to take a part of activities to improve
the economic sector.

Mutual Trust Bank is the first generation private bank in
Bangladesh. At first when Mutual Trust bank started its operation, then it had
capital of 10 crore taka.  But now Mutual
Trust Bank’s capital is 245 crore taka.

Now Mutual Trust bank is running its business over the all
Bangladesh by 41 branches.

Mutual Trust Bank has SWIFT service which is a latest
technology.

MTBL’s Management

Types of the ownership

It is a private bank. It hasn’t any
partnership. The Chairperson is the main owner of this bank. But it has public
shareholders. There are 10240 public shareholders in this bank. So, now it is
public limited company.

Organ gram
of MTBL

Organizational Structure:

Board of Directors

Chairperson :   Mr. Samson H. Chowdhury,

Vice Chairperson :   Dr. Arif Dowla ,

Directors :   Mr. Syed Manzur Elahi

Mr.
Md. Hedayetullah

Mr.
Kh. Rashiduzzaman

Al-haj
Syed Abul Hossain

Mr.
Mohammed Abdur Rouf

Mr.
Md. Abdul Malek

Mr.
Rashed Ahmed Chowdhury

Mrs.
Yasmeen Haque

Mr.
A.F.M. Mahfuzul Hassan

Mr.
Md. Wakiluddin

Mr.
Saidur Rahman Ratan

Managing Director :   Anis A. Khan

Management structure of MTBL

Branch organ gram of MTBL

ORGANIZATION HIERARCHY OF
MUTUAL TRUST BANK LIMITED:

Key Division of MTBL

The key divisions are:

q  Human Resource Division

q  ICC Division

q  Foreign Exchange Division

Branches of MTBL in Bangladesh

·
Principal Branch

·
Dilkusha Branch

·
Panthapath Branch

·
Babu Bazar Branch

·
Progati Sarani Branch

·
Dhanmondi Branch

·
Uttara Model Town Branch

·
Pallabi Branch

·
Agrabad Branch

·
 CDA
Avenue Branch

·
Khatunganj Branch

·
Sonargaon Branch

·
Sreenagar Branch

·
Aman Bazar Branch

·
Bashundhara City Branch

·
Chandra Branch

·
Jubilee Road Branch

·
Nazirhat Branch

·
Chakoria Branch

·
Pabna Branch

·
Gulshan Branch

·
Sylhet Branch

·
Moulvi Bazar Branch

·
Savar Branch

·
Fulbaria Branch

·
Madaripur
Branch

·
Dholaikhal
Branch

·
Raipur
Branch

·
Aganagar
Branch

·
Joypurhat
Branch

·
Narayangonj
Branch

·
Rangpur
Branch

·
Banani
Branch

·
Kushtia
Branch

·
Tongi
Branch

 List of branches to deal in Foreign Exchange
and International trade

List of Countries of Banks Arrangement
with MTBL

Swift:

Swift, it is a society in the international banking. There are
large number of banks are member of this society. It’s headquarter is in
Norway. Mutual Trust Bank is one of the members in this society. So, in this
society they have one secret code and identity number in every bank, who are
the members of this society. Every banks head office is controlling it.

Bank Identification Code (BIC) for the MTBL
Branches are:

General Banking System of MTBL:

Account opening:

 As an intern at first we
were taught how to deal with clients who are interested to open an account. To
open an account at first properly a form provided by the bank has to be
fulfilled. There are two types of account form categorized as savings account
and current account. To open an account client must have an introducer. In this
bank introducer means a person or organization who is currently maintaining an
account with this bank. The transaction of the account must at least three
month. For personal account valid personal identification document is required.
For organization relevant document is required. Like –for business organization
trade license is required. To open a savings account a person/persons must be
adult and mentally sound. For Organizations and institutions one or more
authorized person from that organization will handle the account. Person(s)
will be selected by that respective organization/institution. our job was to
monitor the fulfillment of those conditions. After fulfill the required
procedure if at least two authorized officer satisfied and signed then an
account is opened. An account number is given.

 Cheque book issue:

Issuing cheques book was another work I was assigned for while
working for GB department. When a client present a request letter which the
client gets with the address confirming letter, a cheque book is issued. Then I
sent the cheque book for authorization in system. When the cheque book is
finished, the client is required to submit a requisition form which has been
kept in record for future reference.

Account close:

For two reasons, one can be closed. One is by banker and other is
by the customer.

• By
  banker: If any customer doesn’t
  maintain any transaction within six years and the A/C balance becomes
  lower than the minimum balance, banker has the right to close an A/C.

• By
  customer: If the customer wants
  to close his A/C, he writes an application to the manager urging him to
  close his A/C.

Closing process for fixed deposit A/C:

Fixed
deposit A/C is closed after the termination of the period. Brick by Brick A/C
is very easily closing if one of the clients didn’t pay his/her monthly
installment at the bank three months one after one, in this way three months.
Another account’s will be closed on the parties advice, if they want to close
any one of the account clients must have to submit an A/C closing letter
through des pass. Then the Sr. Principal Officer checks it out and closes the
A/C.

Closing process for current & savings A/C:

After
receiving customer’s application the officer verifies the balance of the A/C. He
then calculates interest and other charges accumulated on the A/C. If it bears
a credit balance, the officer writes advice voucher. He gives necessary
accounting entries post to accounts section. The balance is returned to the
customer. And lastly the A/C is closed. But in practice, normally the customers
don’t close A/C willingly. At times, customers don’t maintain any transaction
for long time. Is this situation at first, the A/C becomes dormant and
ultimately it is closed by the bank.

»
Account closing charge for STD/CD account TK. 500/-

»
Account Closing Charge for Savings (SB) account-TK. 100/-

»
All Schemes and FDR Tk. 100/- for premature Encashment

» Accounts transfer charge for STD/CD/SB/Scheme A/C Tk. 200/-

Collection of different
types of cheque

The cheque in-charge officer collects different types of cheque,
DD, PO, from different account holder. Then the cheque in-charge officer
divided the whole cheque in different group which is transferable ,Online,
OBC,PO, DD, Clearing cheque after that the officer complete the different
procedure.

Complete procedure in different types of
remittance

The word remittance means sending money from one place to another
place through post or telegraph. Commercial banks expose this facility to its
customers by means of

receiving money from one branch of the bank and making an easier
arrangement of payment to another branch within the country. Considering this
quick transaction, the modes of Bank remittance are categories as under:

Remittance:

The main instruments used by MTBL, Babu-bazar Branch for
remittance of funds are:

A. Payment Order Issue/Collection

B. Demand Draft
Issue/Collection
C. Inward/ Outward
Remittance Services
D. Endorsements
E. Travellers Cheque
Issuance

F. IBC/OBC Collection.

Payment Order Issue/Collection:

Payment order is the process of money transfer from payee to payee
within a certain clearing area through banking channel. It’s an order of local
payment on be half of the Bank or its constitution. A customer can Purchase
different modes of payment order such as payee by check and payee order by
cash. The Mutual trust bank limited charge different amount of commission on
the basis of payment order amount and including the vet, VAT will be realized
from the clients as per government rules with that charge.

» Issuance of pay order Commission:

a) Upto Tk,. 10000/- Tk. 25/-

b) Tk. 10001 to Tk. 100000 Tk. 50/-

c) Above Tk. 100000/- Tk. 100/-

» Issuance of duplicate PO/SDR Commission Tk. 50/-

» Issuance of duplicate instrument (except PO/SDR) commission Tk.
100/-

» Bank cut tax and excise duty 15% as per government rules.

» Pay order cancellation charge Tk. 100/-(flat)

When PO is lost:

If
the instrument is lost, the holder will inform to the issuing bank immediately.
Bank will mark ‘stop payment’ on the Bills payable (PO) Register. Buyer will
then ask for a new instrument by submitting a GD copy, and indemnity bond. A
new instrument will be delivered.

»
Issuance of duplicate instrument (except PO/SDR) commission Tk. 100/-

OBC:

The meaning of OBC is Outward Bill for
Collection. OBC procedure is uses when any person or party submits the cheque
for deposit. Basically those cheques are belonging to the bank located out side
of city. Officer gives OBC seal on this type of cheques and later sends a
letter to the manager of the branch on which cheque has been drawn. After
collection of that bill branch advises the concerned branch in which cheques
has been presented to credit the customer account through Inter Branch Credit
Advice (IBCA). This is the procedure of OBC mechanism.

OBC Procedure:

When another
bank’s Check received from customer for clearing, which bank is located outside
of the city that’s moment this branch complete the general procedure & send
to that cheque by post to that bank whose bank issue this cheque. When that
bank found OBC cheque at first that bank check the amount of account and
signature, if everything has right, that bank cut the different charge and made
a new check or P.O /D.D for rest of the amount after that return that cheque
after –

1. Entry in
   the OBC register.
2. Place the
   OBC sill in the cheque and deposit slip.
3. Place
   “payee’s a/c will be credited on realization for MTBL, Babu Bazar, Dhaka”
   at the back side of the cheque.
4. “Special
   Branch” sill is placed at the top left Corner.
5. Write an
   advice and forward this advice to the respective bank for collection.
6. Then the
   deposit slip and copy of advice are attached together in OBC file.

 IBC

IBC means outward bill for Collection. when the outside of the
city’s bank branch or Mutual trust bank ltd. any branch send to the OBC in our
branch that’s moment our branch maintain IBC.if the OBC cheque is to be
different banks branches cheque,that moment our branch send the DD/PO to that
bank by cutting different charge into general procedure, and if the cheques is
our banks different branch, that’s moment our branch maintain IBDA voucher and
send to the Bangladesh Bank by Principal Branch.

Mutual Trust Bank’s Position
in the Competition:

Micro Environment of Mutual
Trust Bank:

Porter’s five forces at
Mutual Trust Bank

Rivalry among existing competitors

The rivalry among the competitors and the
growth in the industry depends upon the intensity of competition. A high amount
of competition is observed in the banking sector of Bangladesh. There are more
than 50 commercial banks in Bangladesh that fight for there own share of the
market. The national banks have the highest banking network in Bangladesh. They
compete against the banks with their low cost of operation and government
support. Again, Standard Chartered bank is the largest multinational banking
network in Bangladesh that has its network in many metropolitans of Bangladesh.
There are other international banks that also take part in the competition and
are aggressive in nature. This high intensity of competition makes companies
difficult to sustain in the long run.

Threat of new entrants

The next force highlights the possibility of new competitors
entering the market. Existing firms may try to discourage new competition by
aggressive expansion & other types of entry barriers. The banking sector of
Bangladesh seriously faces the threat of new entrants. However the threat comes
from two directions. The first threat comes with the arrival of the multinational
banks and her branch expansion particularly due to the booming energy sector.
Secondly, the continuous entry of local banks with lower cost structure also
poses a severe threat to this industry.

In the context of Mutual Trust Bank the various new & upcoming
Banks pose a significant threat, being new entrants in the banking sector of
Bangladesh. But Mutual Trust Bank is aware of these potential competitors and
is trying to expand countrywide to make the sector unattractive & to create
entry barrier.

Threat of substitute products

This force considers the potential impact of substitutes. New
products that satisfy the same customer needs are important sources of
competition including alternative products in the definition of product market
structure identify substitute forms of competition.

Mutual Trust Bank continuously faces the threat of various
substitute products launched by its strong competitors in the market place. For
example, the various consumer credit schemes offered by various local banks
with lower interest rates and cost also pose a strong threat on the Mutual Trust
Bank personal banking products. Again the lower service charge at national
banks also discourages a wide group of customers to hold account in Mutual Trust
Bank. These are some of the threats posed by substitute products in the market
place.

Bargaining power of suppliers

The fourth force is the power of suppliers that may have impact on
the producers in an industry. Companies may pursue vertical integration
strategies to reduce the bargaining power of suppliers.

In the context of Mutual Trust Bank, suppliers are those customers
and organizations that provide financing to the firm via depository schemes. If
the cost of financing rises, then Mutual Trust Bank will have to increase the interest
rate that it charges to its customer in order to remain in the business. This
may result in severe customer dissatisfaction & as a result poor
profitability. Mutual Trust Bank is aware of this devastating situation.

Bargaining power of buyers

Finally, buyers may use their purchasing power to influence the
producers or service providers. Understanding which organizations have power
& influence in the distribution channel provides important insight into the
structure of competition.

In the banking sector of Bangladesh, customers have a strong
bargaining power since there a large number of commercial banks providing
similar services. Customers have a wide range of options in deciding where to
bank. They can either go for the Multinationals or turn to new local banks for
getting quality service. Others may also consider the national banks for large
credit facilities. Therefore banks have to pursue the customers with attractive
interest rates and provide them with tailor made customized services in order to
attract the customer or hunt depositors.

In the context of Mutual Trust Bank, the firm is more or less free
from the scope of the bargaining power of the buyers. Mutual Trust Bank has its
own policies to carry out its operations & employees follow those rules to
deal with the customers. But too much rigidity of the prevailing policies when
to deal with the clients may under cut its client base as well as
profitability. To overcome this worst scenario – a positive & personalized
approach to the needs of customer – has become Mutual Trust Bank’s motto.

SWOT
ANALYSIS:

SWOT analysis is the detailed study of an organization’s exposure
and potential in perspective of its strength, weakness, opportunity and threat.
This facilitates the organization to make their existing line of performance
and also foresee the future to improve their performance in comparison to their
competitors. As though this tool, an organization can also study its current
position, it can also be considered as an important tool for making changes in
the strategic management of the organization.

Strengths

·
Mutual Trust Bank Limited has already established a
favorable reputation in the banking industry of the country. It is one of the
leading private sector commercial banks in Bangladesh. The bank has already
shown a tremendous growth in the profits and deposits sector.

·
Mutual Trust Bank has provided its banking service with
a top leadership and management position. The top management officials have all worked in reputed banks and
their years of banking experience, skill, and expertise will continue to
contribute towards further expansion of the bank.

·
Mutual
Trust Bank Limited has already achieved a high growth rate accompanied by an
impressive profit growth rate in from 2004-2007. The number of deposits and the
loans and advances are also increasing rapidly.

·
Mutual
Trust Bank has an interactive corporate culture. The working environment is
very friendly, interactive and informal. And there are no hidden barriers or
boundaries while communicate between the superior and the employees. This
corporate culture provides as a great motivation factor among the employees.

·
Mutual
Trust Bank has the reputation of being the provider of good quality services to
its, potential customers.

Weaknesses

· The bank failed to provide a strong
quality-recruitment policy in the lower level position. As a result executives
have to face some problems. And it has also become a de-motivating factor for
the officers.

·
Some
of the job in Mutual Trust Bank has no growth or advancement path. Therefore,
lack of motivation exists in persons filling those positions.

·
In
terms of promotional sector, Mutual Trust Bank has to more emphasize on that.
They have to follow aggressive marketing campaign. Mutual Trust Bank does not
have a specified sales team. The sales of the products are based on the
officers’ activity. Like every officer of Panthapath branch has to sale at
least three credit cards within December, 2008.

Opportunities

• Banking sector is steel a
  growing sector so there are lots of opportunities waiting for a bank like Mutual
  Trust Bank. Mutual Trust Bank has already taken one step for getting the
  opportunity of merchant banking section.
• Opportunity in retail banking lies in the fact
  that the country has increased population is gradually learning to adopt
  consumer finance. The bulk of our population is middle class. Different
  types of retail lending products have great appeal to this class. So a
  wide variety of retail lending products has a very large and easily
  pregnable market.

Threats

·
All sustain multinational banks and upcoming foreign,
private banks posse’s enormous threats to Mutual Trust Bank Limited. If that
happens the intensity of competition will rise further and banks will have to
develop strategies to compete against an
on slough of foreign the banks.

·
The default risks of all terms of loan have to be
minimizing in order to sustain in the financial market. Because, default risk
leads the organization towards bankrupt. Mutual Trust Bank has to remain
vigilant about this problem so that proactive strategies are taken to minimize
this problem if not elimination.

·
The low compensation package of the employees from mid
level to lower level position threats the employee motivation. As a result,
good quality employees leave the organization and it effects the organization
as a whole.

Project Part

Introduction:

The Company was incorporated on September
29, 1999 under the Companies Act 1994 as a public limited company by shares for
carrying out all kinds of banking activities with Authorized Capital of Tk.
38,00,000,000 divided into 38,000,000 ordinary shares of Tk.100 each. The
Company was also issued Certificate for Commencement of Business on the same
day and was granted license on October 05, 1999 by Bangladesh Bank under the
Banking Companies Act 1991 and started its banking operation on October 24,
1999.

The bank has increased its branches to 41 at present and a huge
number of customers are getting services from them each day. My internship
project is about customer satisfaction on general banking of Mutual Trust Bank.

Significance of the study:

The study will show us the positive sides of the general banking
and the demand of this banking system. The bank authority can also find out the
further expectations of the customers from the bank. As my study will also
cover, the satisfaction level of the customers based on the services provided
by the bank, it will be helpful for the employees to know about the specialty
or even the lacking in their attitudes towards the customers of the bank.

Expected Findings or
Hypotheses:

The customers of Mutual Trust Bank Ltd. are satisfied based on
general banking system.

METHODOLOGY

Type of research:

In this study, exploratory research will be undertaken to gain
insights and understanding of the overall banking industry and also to
determine some of the attributes of service quality in general banking system.
After that a more comprehensive conclusive research will be done to fulfill the
main purpose of the study.

Target group:

Customers of Mutual Trust Bank Ltd, Bashundhara City Branch,Dhaka

Sources of Information:

Primary data

Primary data will be collected by interviewing employees and
manager of Mutual Trust Bank, Bashundhara City branch and directly
communication with the customers. A questionnaire survey will be done to
minimize interruption of the banking activities. Primary data will be mostly
derived from the discussion with the employees & through surveys on
customers of the organization. Primary information will be under consideration
in the following manner:

ð Face to face conversation with the
employees

ð By interviewing customers at MTBL,
Bashundhara City Branch

Secondary data

Secondary sources that will be used in the study will include:

Internal
Sources

q  Bank’s Annual Report

q  Group Business Principal manual

q  Group Instruction Manual & Business
Instruction Manual

q  Prior research report

q  Any information regarding the Banking
sector

External
Sources

q  Different books and periodicals related to
the banking sector

q  Newspapers

Study center:

We will only cover the Bashundhara City Branch in my study, as we
are not allowed to go out of the office to carry out my research.

Data collecting instruments:

Questionnaire survey:

Sampling method:

We will adopt simple random sampling technique during the survey
of this project where customers will be given copies of the questionnaire and
will be asked to fill them. Our continuous support will always be there with
them to fill those questionnaires.

Sample size:

In this part of the research we will survey a total of 40
customers with the help of a structured questionnaire.

Data Analysis Techniques:

The data that obtained from the survey will be analyzed and
interpreted by using statistical tools such as

Graphical presentation, frequency distribution, percentage
analysis, ANOVA, etc.

Analysis Part

Graphical Presentation of Independent
Variables

Cause of Preference:

Table 1: Frequency
distribution of cause of preference

Here the respondents
are asked about the cause of the preference of MTBL. Among 40 respondents 26
people voted on quality service which is more than twice who voted on goodwill.
Only 2 respondents voted on convenience. If we convert it in the percentage
form, we can see that 65% voted on quality service, 30% people voted on
goodwill and about 5% people voted on convenience. Here we can see that most of
the people said that quality service is the main cause of their cause of
preference.

Figure 1: Bar chart of
cause of preference

By observing the bar graphs we can conclude that highest number of
people voted on quality service provided by the MTBL, which is twice as the
number of the vote on goodwill. Moreover, least number of people voted on
convenience.

Willingness of the Employee:

Table 2: Frequency
distribution of willingness of the employee

Here the respondents are asked to evaluate the willingness of the
employee of MTBL. Among the 40 respondents 23 people are strongly agreed, 8
people are agreed with the statement.6 people are neutral and total of 3 people
are disagreed with this statement. If we transform this number of people in
percentage form, we can see that 77.5% of people are agreed, 15% are in neutral
position and 7.5% of the people are disagreed with this statement. Here the
main thing is that most people agreed with this statement.

Figure 2:
bar chart of willingness of the employee

By observing the bar graphs we can conclude that highest number of
people voted on strongly agree on that circumstances which are almost thrice as
the number of the vote of agree. Moreover, Least number of people voted on
strongly disagree which is as low as 1.

Secured Transaction

Table 3: Frequency distribution of security of the transaction

Here the respondents are asked to evaluate the security of the
transaction.  And in that aspect among 40
respondents 19 people voted on strongly agree which is almost equal as the
number of the vote on agreed.  On the
other side, there was no one voted against the security system of the MTBL.  Besides, 3 people were neutral on that
aspect.

Figure 3:
bar chart of secured transaction

In this bar chart, we can see that almost same number of people
voted on strongly agreed and agreed. Least number of people was in neutral
position and none against the security system of their transaction.

Adequate Facilities:

Table 4: Frequency distribution of adequate facilities of MTBL

In this question, the
respondents were asked about the adequate facilities of MTBL. Among 40
respondents, 20 people voted on “Yes” that means they get adequate facilities
in MTBL. On the other hand, about 19 people voted on “No”  that means they do not get any adequate
facilities compare to any other bank. Only 1 person voted on “neutral.” If we
convert it in the percentage form, we can see that half of the respondents said
“Yes” and about 47.5% people said “no.” Only 2.5% people were “neutral” about
this question.

.

Figure 4: pie chart of
adequate facilities provided by MTBL

In this pie chart, we can observe that most of the people are in
the position that they get adequate facilities in MTBL and almost same number
of people does not get any adequate facilities compare to other banks.

Modern Equipment:

Table 5: Frequency distribution table of modern equipments

Here in this question
the respondents were asked about whether MTBL uses the modern equipment or not.
Among 40 respondents, 28 people voted on “Yes,” they use modern equipments and
on the other hand 12 people voted on “No,” they do not. In the percentage form,
we can see that 70% people said that “Yes,” MTBL uses modern equipments to
fulfill the customer’s need and only 30% said that “No,” they do not. By
observing this result we can say that most of the people are in the positive
side that means MTBL uses modern equipments.

Figure 5:
Pie chart of modern equipments

By observing this pie
chart, we can say that most of the people said that MTBL uses all types of
modern equipments to satisfy the customers and less number of people said that
no, MTBL does not use the modern equipments to serve the customers.

Banking Environment:

Table 6: Frequency distribution table of banking environment of MTBL

In this question, the respondents were asked about the banking
environment of MTBL. Here, among 40 respondents 36 people answered that the
banking environment is excellent and 4 people said that it is good. In the
percentage form, 90% said that the environment is excellent and 10% said that
it is good.

Figure 6:
pie chart of banking environment of MTBL

In this pie chart, we
can observe that most of the people are in the position that the banking
environment is excellent and few people are in the position that the
environment is good. From this, we can say that almost all the people are very
positive about the banking environment of MTBL.

Speed of the
Service

Table 5: Frequency distribution table of speed of the service of MTBL

Here the respondents
were asked about the speed of the services provided by the MTBL employees.
Among 40 respondents, 25 people said that the speed of the services is the
quickest and 14 people said that the speed is quick enough and 1 person voted
on neutral.

Figure 7:
pie chart of the speed of the service of MTBL

In this pie chart, we can observe that most of the people voted on
the quickest speed of the service provided by the MTBL. Then quick speed is
slightly less than the quickest speed of the services provided by the MTBL and
the least number of people voted from the neutral position. From this we can
say that most of the people are very positive about the speed of the services
provided by the MTBL.

Customer Satisfaction:

Table 5: Frequency distribution table of customer satisfaction

In this question the respondents were asked about the level of
satisfaction of the customers. Here we can see that 32 respondents were very
delighted and 8 respondents said that they are satisfied. In the percentage
form, we can see that 80% of people are very delighted, 20% are satisfied and
only 2% of the people are neutral. None of them were unsatisfied.

Figure 8: Histogram
of customer satisfaction

From this histogram, we can conclude that the highest number of
people voted on very delighted about the satisfaction level. Less number of the
people voted on satisfactory. None of them voted on unsatisfactory.

Multiple Linear

In this part, the focus will be on creating a multiple linear
regression model in which the credit card sales will be dependent model and the
rest will be independent model. The topic  has already shown  the correlation part to determine in what way
each of the independent variables affect the dependent variable. In this
regression model, I will exactly quantify by much the independent variables
will affect the dependent variable.

Interpretation of R square: The model summary shows some important
indicators of the explaining power of the model. The R-square value shows how
much change in the dependent variable is caused by the independent variables.
In this case a r-square value of .390 or 39% means 39% of the change in
dependent variable is caused by the independent variables.

Interpretation of Adjusted
R-square: On the other
hand, the adjusted r-square value shows how much change in the dependent
variable is caused by statistically significant variables. So in this case, an
adjusted r-square value of .279 or 27.9% means that 27.9% of the change in
dependent variable is caused by statistically significant variables. The
standard error of the estimate measures the accuracy of the predictions within
the regression line, which is around.

Durbin-Watson Test

According to Wikipedia.com, the Durbin-Watson statistic is a test statistic used to detect the
presence of autocorrelation in the residuals from a regression analysis. In
statistics, the autocorrelation function (ACF) of a random process describes
the correlation between the processes at different points in time. The Durbin
Watson value ranges from 0 to 4. A value of 2 indicates there appears to be no
autocorrelation. If the Durbin-Watson statistic is substantially less than 2,
there is evidence of positive serial correlation. As a rough rule of thumb, if
Durbin-Watson is less than 1.0, there may be cause for alarm. Small values of d
indicate successive error terms are, on average, close in value to one another,
or positively correlated. Large values of d indicate successive error
terms are, on average, much different in value to one another, or negatively
correlated.

The test statistic of Durbin-Watson model is and hence we see we use error values
according to time.

The Durbin-Watson test statistic of my model is 1.667, which means
there is a positive serial correlation exit among the variable.

 Analysis of Variance (ANOVA)

The ANOVA table shows the total variation, the explained variation
and the unexplained variation (residual) due to the error. The explained variation
is denoted as SSR and the unexplained variation due to residuals is denoted by
SSE. The total variation (SST) is 6.4 and variation explained by regression
(SSR) is 2.495 and variation explained by regression error SSE is 3.905. So the
explaining power of the regression model is good since SSR is less than SSE. If
we divide the SSR with SST, we get the value of r-square which we have already
found out to be 39%.

Coefficients (?) of Independent Variables

Interpretation of
Unstandardized Beta Coefficients

The Beta (?) coefficients are the estimated coefficients of
population variables. Unstandardized coefficients mean that they include the
y-intercept in the regression equation, which is often meaningless. Where else,
standardized coefficients are used in standardized regression equation which
has no y-intercept.

Speed of the service has an unstandardized beta of .260 which
means that if other variables are held constant, then for every unit of
increase in Speed of the service the customer satisfaction will rise by .260
units.

Banking Environment has an unstandardized beta of .445 which means
that if other variables are held constant, then for every unit of increase in
Banking Environment the customer satisfaction will rise by .445 units.

Modern Equipment has an unstandardized beta of .290 which means
that if other variables are held constant, then for every unit of increase in
Modern Equipment the customer satisfaction will rise by .290 units.

Adequate Manpower Facilities has an unstandardized beta of .065
which means that if other variables are held constant, then for every unit of
increase in Adequate Manpower Facilities the customer satisfaction will rise by
.065 units.

Secured Transaction has an unstandardized beta of .165 which means
that if other variables are held constant, then for every unit of increase in
Secured Transaction the customer satisfaction will rise by .165 units.

Willingness of the Employee has an unstandardized beta of .070
which means that if other variables are held constant, then for every unit of
increase in Willingness of the employee the customer satisfaction will rise by
.070 units.

Interpretation of Standardized Beta
Coefficients:

Speed of the Service has a standardized beta of .350 which means
that if other variables are held constant, then for every unit of increase in
Speed of the Service the customer satisfaction will rise by .350 units.

Banking Environment has a standardized beta of .334 which means
that if other variables are held constant, then for every unit of increase in
Banking environment the customer satisfaction will rise by .334 units.

Modern Equipments has a standardized beta of .333 which means that
if other variables are held constant, then for every unit of increase in Modern
Equipments the customer satisfaction will rise by .333 units.

Adequate facilities has a standardized beta of .089 which means
that if other variables are held constant, then for every unit of increase in
Adequate facilities the customer satisfaction will rise by .350 units.

Cross Tabulation analysis
between Customer Satisfaction and Willingness of the Employee. 

For the cross tabulation analysis we have to consider two
categories which are customer satisfaction and Willingness of the employees

Ho= Customer’s satisfaction and
Willingness of the employee are Independent

H1= Customer’s satisfaction and
Willingness of the employees are dependent.

Decision : 

Chi square(2)= 11.196 ; P= .024

All this substantial differences were
significant because P value was less than .05.

So, we reject the Ho hypothesis.

Cross Tabulation analysis
between Customer Satisfaction and Secured Transaction. 

For the cross tabulation analysis we have to consider two
categories which are customer satisfaction and secured transaction:

Ho= Customer’s satisfaction and secured
transaction are Independent

H1= Customer’s satisfaction and secured
transaction are dependent.

Decision : 

Chi square(2)= 3.231 ; P= .199

All this substantial differences were
insignificant because P value was greater than .05.

So, we do not reject the Ho hypothesis.

Cross Tabulation analysis
between Customer Satisfaction and Adequate facilities Provided MTBL

For the cross tabulation analysis we have to consider two
categories which are customer satisfaction and adequate facilities:

Ho= Customer’s satisfaction and adequate
facilities are Independent

H1= Customer’s satisfaction and adequate
facilities are dependent.

Decision: 

Chi square(2)= 1.036; P= .596

All this substantial differences were
insignificant because P value was greater than .05.

So, we do not reject the Ho hypothesis.

Cross Tabulation analysis
between Customer Satisfaction and Modern Equipment of MTBL

For the cross tabulation analysis we have to consider two
categories which are customer satisfaction and modern equipment:

Ho= Customer’s satisfaction and modern
equipment of MTBL are Independent

H1= Customer’s satisfaction and modern
equipment of MTBL are dependent.

Decision:

Chi square(2)=5.030; P= .025

All this substantial differences were
significant because P value was less than .05.

So, we can reject the Ho hypothesis.

Cross Tabulation analysis
between Customer Satisfaction and Banking Environment of MTBL

For the cross tabulation analysis we have to consider two
categories which are customer satisfaction and banking environment of MTBL:

Ho= Customer’s satisfaction and banking
environment of MTBL are Independent

H1= Customer’s satisfaction and banking
environment of MTBL are dependent.

Decision: 

Chi square(2)=1.111; P= .292

All this substantial differences were
insignificant because P value was greater than .05.

So, we do not reject the Ho hypothesis.

Cross Tabulation analysis
between Customer Satisfaction and Speed of the Service of MTBL:

For the cross tabulation analysis we have to consider two
categories which are customer satisfaction and speed of the service of MTBL:

Ho= Customer’s satisfaction and speed of
the service of MTBL are Independent

H1= Customer’s satisfaction and speed of
the service of MTBL are dependent.

Decision: 

Chi square(2)=5.643; P= .060

All this substantial differences were
insignificant because P value was greater than .05.

So, we do not reject the Ho hypothesis.

Findings

In
the frequency table, it shows that most of the clients of Mutual Trust Bank Ltd
are from business and service category. The most important reason for choosing
Mutual Trust Bank Ltd is its go service quality and for goodwill as well. Almost
all the of the respondents are satisfied with the current marketing strategy
which is followed by the Mutual Trust Bank Ltd. Though the customers are
satisfied, Mutual Trust Bank Ltd needs to be more concentrate while dealing
with customer to keep them. Though 57.5% respondents’ thinks that employees of
Mutual Trust Bank Ltd are helpful but still 15% respondents are neutral about
it and 7.5% are unsatisfied. So they need to focus more in terms of what
customers want. And in both the case of feeing safe while making transaction
and understanding statements easily 85% respondents are happy. So it plays a
motive role for Mutual Trust Bank Ltd. And almost 80% people are concern about
the equipment they use, which gives a good indication in the market place.

In
the regression table, it shows that there is significant relation between the
satisfactions with Mutual Trust Bank Ltd and its current quality service. So,
the null hypothesis should be rejected. As a result, the alternative
hypothesis- Customer of Mutual Trust Bank Ltd are satisfied with the general
banking services they are offering.

In
the cross tabs, there is no relationship between modern equipment and
satisfaction with Mutual Trust Bank Ltd. But there is relationship between
current strategy of marketing and satisfaction with Mutual Trust Bank Ltd, and
improvement need or not in marketing strategies and satisfaction with Mutual
Trust Bank Ltd.

At
the end it is to be said that Mutual Trust Bank Ltd needs some improvement in
its marketing strategies though it is doing well with its current general
banking service.

Recommendations:

Based on the above research and analysis we can see that Mutual
Trust Bank is a growing bank and the growth of MTBL has increased. Customers
like this bank and its products. Though to compete with other banks and to
increase the growth rate more the bank has to take some other steps:

• New products: Mutual Trust Bank does not have a huge product line. They add
  more products and services and grab other markets also.
• Loan policy: Though the loan system is good in Mutual Trust Bank but loan
  approval policy it tough. It is difficult to get loans from Mutual Trust
  Bank.
• Use of Marketing Research: The management of Mutual Trust Bank should
  regularly administer marketing research activities in order to keep a
  regular track of satisfaction levels. Regular research should also be
  conducted to find out customer expectations about various service aspects.
  As customer expectations and satisfaction are not static figures, regular
  research at sufficient intervals should be conducted.

• Complaint Management: Mutual Trust Bank should actively manage the
  complaints of various customers and encourage customers to give feedback
  about the services. The management should collect, document complaints,
  use that information to identify dissatisfied customers, correct
  individual problems where possible and identify common service failure
  points. Research showed that this strategy will radically improve the
  overall customer satisfaction.

• Focus on relationship strategies: The bank should focus more on existing customers
  in order to build strong and loyal relationship with them as most
  satisfied customers recommends the bank to friends and relatives. Thus the
  power of relationship will foster positive Word of Mouth Communication and
  will attract new customers at a lower cost.

• Launching ATM cards and ATM booths: ATM card is not an extra service in the present
  time but a requirement for any bank. Mutual Trust Bank has lacking in this
  sector.They have ATM booths jointly with DBBL.But they should have their
  own STM booths. Though I have not included this question in my
  questionnaire but while talking with customers and also with employees of Mutual
  Trust Bank I have understood that ATM cards and booths are their demand.

Conclusion:

Mutual Trust Bank Limited (MTBL) is one of the best banks in
respect of service, profitability and strength among the private commercial
banks; in our country and also to play a catalyst role in the formation of
capital market. Mutual Trust Bank Ltd bears a unique history of its own. The
bank has set up a new standard in financing in the Industrial, Trade and
Foreign Exchange Business. Its various deposit and credit products have also
attracted the clients both corporate and individuals who feel comfort in doing
business with the bank.

Mutual Trust Bank Limited (MTBL) is now been called a modern bank
that undertakes all its operations at an international standard. Over the
years, MTBL has built itself as one of the pillars of Bangladesh’s financial
sector and is playing a pivotal role in extending the role of the private
sector of the economy. The customers of MTBL are satisfied with the general
banking system which they provide.

Bibliography:

1. Block. Stanley. B & Hirt. Geoffrey. A, Foundation of Financial Management, 10^th Edition,
   McGraw-Hill.
2. Annual Report of
   Mutual Trust Bank Limited, 2005-2007.
3. www.bangladesh-bank.org
4. www.mutualtrustbank.com
5. Loans and Advance
   manuals.

Appendix

MTBL-
Mutual Trust Bank Limited

Designated
Account: It means the account(s) approved by the Bank to be accessed through
the Card.

PIN:
It is personal identification number and password and any other form of
electronic identification/signature issued by the bank and Etna to the
cardholder at the cardholders request.

Transaction:
It means any transaction or instruction effected or issued or purported to be
effected or issued by the cardholder through the card.

Information:
It means information regarding the money or other relevant particulars relating
to the cardholder or the account or any transaction.

VAT:
It means any Value Added Tax, including any tax of a similar nature that may
replace it or be levied in addition to it, by whatever name called.

ATM:
automated Teller Machine.

POS:
Point of sale terminals

VISA:
Visa International Incorporated.

Principal
cardholder: It means the person(s) to whom a credit card is issued on his
application form.

Supplementary
Cardholder: It means the person (other than the Principal Cardholder) to whom a
credit card is issued on the application or request of the Principal cardholder
whether alone or jointly with such person.

Payment
Due Date: It means the last date of payment and is usually 15 days from the
date of statement, if not mentioned or specified on the credit card account
statement.