General Banking Activities of Mutual Trust Bank PLC

An internship report submitted in partial fulfillment of the requirements for the

Degree of Bachelor of Business Administration (BBA)

Submitted To
Aklima Akter
Lecturer
Department of Business Administration
Port City International University, Chattogram, Bangladesh

Submitted By
Samira Jahan
ID no: BBA 02107693
BBA 21st Batch; Session: 2020 - 2021
Department of Business Administration
Port City International University, Chattogram, Bangladesh

Date of Submission: 18.01.2024

 DEDICATION

Dedicated To

My Beloved Department

“Department

Of

Business Administration. “

Port City International

University, Chattogram
Bangladesh

i
 Letter of Submission
Date: 18th January, 2024
Aklima Akter
Lecturer
Department of Business Administration
Port City International University, Chattogram, Bangladesh

Subject: Submission of Internship Report.

Dear Madam,

This is my great pleasure to submit my internship report to you for your perusal. This report has
been written on the “General Banking Activities of Mutual Trust Bank PLC’ I have put my
best effort into making this report a successful one. It has been a joyful & enlightening
experience for me to work in the organization & prepare this report. However, this has been a
great source of learning for me. Despite the various limitations faced while preparing this report,
I have tried to be as thorough as possible. I would like to express my sincere gratitude to you for
your kind guidance & suggestions in preparing the report.

It would be my immense pleasure if you find this report useful and informative to have an
apparent perspective on this issue. I will be obliged if you kindly approve this effort.

Sincerely yours,

Samira Jahan
ID: BBA 02107693
21st batch. Session: 2020 – 2021
Major in Finance
Department Of Business Administration
Port City International University, Chattogram, Bangladesh.

ii
 Declaration

This is to certify that the Internship Report on “General Banking Activities Of Mutual Trust
Bank PLC’ is the bona-fide report done by Samira Jahan, ID: BBA 02107693, BBA 21st Batch,
Session: 2020-2021, as a partial fulfillment of the requirement for the Bachelor of Business
Administration (BBA) from the Department Of Business Administration, Port City International
University, Chattogram, Bangladesh.

The report has been prepared under my guidance and is carried out successfully. I wish every
success in her life.

----------------

Samira Jahan
ID: BBA 02107693
21st batch. Session: 2020 – 2021
Major in Finance
Department Of Business Administration
Port City International University, Chattogram, Bangladesh

iii
 Supervisor’s Certificate

This is to certify that Samira Jahan, ID No: BBA 02107693, 21st Batch (BBA) has prepared her
internship report on “General Banking Activities of Mutual Trust Bank PLC, ,, Chattogram”
under my supervision and guidance. She has fulfilled all the requirements for submitting the
report for Bachelor of Business Administration, Major in Finance from Port City International
University. As she has completed her internship, she is permitted to submit the report, I wish her
every success in life.

-------------------------------

Aklima Akter

Lecturer

Department of Business Administration

Port City International University, Chattogram, Bangladesh

iV
 Acknowledgement

At the very beginning, I humbly acknowledge my heartfelt substantial gratitude to the almighty,
the most gracious and merciful ALLAH for his blessings in completing this work. I do thank for
blessing to my daily life, good health, healthy mind and good ideas.

It’s a great pleasure for me to acknowledge my deepest sense of gratitude, sincere appreciation
and heartfelt ineptness solemn regards to my respected teacher and supervisor Aklima Akter,
Department of Business Administration, Port City International University for her suggestion and
guidelines to complete the internship program and preparing the report. I am very grateful to the
Mutual Trust Bank PLC for providing me the opportunity to complete my internship program.

I would like to express my deep sense of gratitude to HOR: Mohammed Ishaque, Md Zakir
Hossain Vice President and Mop/BAMLCO, and members of staff of Mutual Trust Bank PLC,
for their friendly behavior and cordial help to work in an unknown environment.

I would also like to express my gratitude to the staff members of Mutual Trust Bank PLC who
generously devoted their time to participate in interviews and provide relevant data for this study.
Their cooperation and willingness to share their knowledge have been instrumental in shaping
the findings and conclusions presented in this report.

Finally, I would like to thank my family and friends for their unwavering support, patience, and
understanding during the course of this project. Their encouragement and belief in my abilities
have been a constant source of motivation.

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 Executive Summary

The internship program is an associate course that encourages useful learning and experience
when he/she goes to work after the finish of graduation. My internship program was assigned at
Mutual Trust Bank PLC for 3 Months under the supervision of Aklima Akter, Department of
Business Administration, Port City International University.

My internship report was on the “General Banking activities of Mutual Trust Bank PLC. The
main objective of this study is to evaluate the general banking activities of MTB. This report
presents an in-depth analysis of the general banking activities of Mutual Trust Bank PLC, a
leading financial institution in the banking industry. The study aims to examine the key aspects
of the bank's operations, including its product and service offerings, customer base, financial
performance, and market position.

To achieve the research objectives, a combination of primary and secondary research

methodologies was employed. Primary research involved interviews with key personnel within
the bank, including senior managers and staff members, to gather insights into the bank's
operations and strategies. Secondary research involved a comprehensive review of relevant
literature, industry reports, and financial statements to obtain a holistic understanding of the
bank's performance and competitive landscape.

The findings of the study indicate that Mutual Trust Bank PLC offers a wide range of banking
products and services tailored to meet the diverse needs of its customers. The bank has
implemented robust risk management practices and technological advancements to ensure the
security and efficiency of its operations. Furthermore, the bank has demonstrated consistent
financial performance, characterized by steady growth in assets, profitability, and market share.

Based on the analysis, it is concluded that Mutual Trust Bank PLC has successfully positioned
itself as a trusted and reliable banking institution in the industry. The bank's customer-centric
approach, innovative solutions, and strong financial performance have contributed to its
competitive advantage and sustainable growth.

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 TABLE OF CONTENTS
SERIAL NO TITLE PAGE NO

Dedication i
Letter of Submission ii
Declaration iii
Supervisor’s Certificate iv
Acknowledgement v
Executive Summary vi
Table of Contents vii
List of Table viii
List of Figure viii
Acronyms ix
Chapter 1: Introduction
1.1 Background of the study 14
1.2 Rationale of the study 14
1.3 Objectives of the study 16
1.4 Methodology of the study 16
1.5 Scope of the study 17
1.6 Limitations of the study 17
1.7 Scheme of the study 17
Chapter 2: A Brief Profile of MTB 18
2.1 History of MTB 19
2.2 MTB at a Glance 19
2.3 Vision of MTB 20
2.4 Mission of MTB 20
2.5 Core values of MTB 20
2.6 Slogan 21
2.7 Strategic objectives 21
2.8 Corporate Philosophy 21
2.9 Products and services of MTB 22
Chapter 3: General Banking Activities & Policies of 30
MTB
3.1 Introduction of general banking 31
3.2 Front Desk 31
3.3 Account opening section 42
3.4 Cash section 44
3.5 Islamic Banking 46
3.6 Services 47
3.7 General Banking Policy 52
3.8 General Banking Procedures 53
Chapter-4: Analysis and Findings 55
4.1 Introduction 56
4.2 Current Deposit 56
4.3 Saving deposit 57
4.4 Special Notice Deposit 57
4.5 Fixed Deposit 58
4.6 Deposit Scheme 59
4.7 Findings of the study 60
4.8 SWOT analysis 61
Chapter 5: Recommendation and 64
Conclusion
4.1 Recommendations 65
4.2 Conclusions 65
References

vii
 List of Tables

Table Particulars Page No.

No.
1. Outward Clearing 43
2. Inward Clearing 43
3. Current deposit 56
4. Saving Deposit 57
5. Special Notice Deposit 57
6. Fixed Deposit 58
7. Deposit Scheme 59

List of Figures

Figure Particulars Page No.

No.

1. MTB At A Glance 19
2. Monthly Benefit Plan 23
3. Pay Order 27
4. Organizational Hierarchy of MTB 29
5. Interest rate of FDR 35
6. Current deposit 56
7. Saving Deposit 57
8. Special Notice Deposit 57
9. Fixed Deposit 58
10. Deposit Scheme 59

vii

List of Abbreviations/Acronyms
 Abbreviations Full Term

MTB Mutual Trust Bank PLC

PLC Public Limited Company
HOR Head Of Region
BAMLCO Branch Anti Money Laundering Compliance Officer
AML Anti-Money Laundering
GB General Banking
NGO Non-Government Organization
SWIFT Society for Worldwide Interbank Financial
Telecommunications
STP Straight through processing
STD Special Term Deposit
POS Point Of Sale
DBBL Dutch – Bangla Bank
TIN Taxpayer Identification Numbers
DD Demand Draft
PO Pay Order
KYC Know Your Customer
TT Telegraphic Transfer
ATM Automated Teller Machine
UCB United Commercial Bank PLC
EBL Eastern Bank PLC
NCC National Credit and Commerce Bank PLC
BRAC Bangladesh Rural Advancement Committee
SME Small and Medium-sized Enterprises
ix
 CHAPTER-1

Introductio
n
1.1: Background of the study

The banking sector is one of the most profitable sectors in Bangladesh and is also vital for
economic stability and growth. Banks act as intermediaries between savers and borrowers,
channeling funds from individuals and businesses with surplus capital to those in need of loans.
A stable and efficient banking sector promotes investment and economic growth by offering
financing options for various sectors, such as agriculture, manufacturing, and services. Banks
often drive financial innovation, creating new financial products and services that can enhance
economic efficiency and provide better access to capital for individuals and businesses. Bank
also plays a role in distributing and Managing Currency ensuring that there is an adequate supply
of physical money in circulation. These days our lives are deeply dependent on the banking
system. The businesses we see around have their links with banks they might have borrowed
money from a bank to finance their working capital or fixed assets. If nothing else, they will
have at least a current or a savings account for deposit of the day's sale proceeds. The general
banking department performs the core function of the bank and operates the day-to-day
transactions. It is the storage point for all kinds of transactions of the foreign exchange
department, loans, and advances department and new accounts, remits funds, honor cheques,
takes deposits, issues bank draft and pay orders, etc. General Banking is also known as retail
banking So it is clear that the banking and banking business is very much important for us in all
aspects and steps of our life.

Mutual Trust Bank PLC has created a positive image in the customers minds by providing better
service. As it maintains the pace with the competitive business world, its activities, culture,
philosophy, and style lead an intern student to be the best in any field of working life. As an
intern student, I have had the opportunity to work with this organization for Three months and
acquire ideas about the real business world.

1.2: Rationale of the study

The report aims to provide a comprehensive understanding of Mutual Trust Bank PLC and its
significance in the banking industry. By focusing on the general banking activities at the Agrabad
branch in Chattogram, the study aims to shed light on the bank's operations, customer services,
and its impact on the local economy.

Understanding the general banking activities is crucial as they form the core functions of a bank
and have a direct impact on its financial stability, profitability, and overall success. These
activities include account opening, deposit mobilization, lending, remittance services, and
customer relationship management. By examining these activities at Mutual Trust Bank, the

13
study aims to assess the efficiency, effectiveness, and customer-centric approach of the bank in
delivering these services. The study holds significant importance as it serves multiple purposes.

Firstly, it will enhance the understanding of Mutual Trust Bank's operations and its role in the
local economy. By analyzing the general banking activities, the study will provide insights into
how the bank attracts and retains customers, manages their funds, and contributes to the
economic development of the region.

Secondly, the study will evaluate the bank's effectiveness in meeting customer needs and
expectations. By assessing the account opening process, deposit mobilization strategies, lending
practices, remittance services, and customer relationship management, the study will identify the
strengths and weaknesses in these areas. This evaluation will provide valuable insights into areas
where the bank excels and areas that require improvements to enhance customer satisfaction and
loyalty.

Thirdly, the study will assess the bank's compliance with regulatory requirements and industry
best practices. By examining the general banking activities, the study will ensure that Mutual
Trust Bank adheres to the necessary regulations and follows the industry standards in terms of
documentation, risk management, and customer protection. This assessment will help identify
any gaps and recommend measures to ensure compliance with the necessary guidelines.

Lastly, the study aims to provide recommendations for enhancing the general banking activities
of Mutual Trust Bank. Based on the findings and analysis, the study will suggest practical and
actionable measures to improve operational efficiency, customer satisfaction, and overall
performance. These recommendations can assist the bank in delivering better services, attracting
more customers, and staying competitive in the dynamic banking industry.

To conduct the study, a research methodology involving interviews with bank officials, surveys
with customers, and analysis of internal bank documents will be employed. The study's scope
will cover various aspects of general banking activities, focusing on the Agrabad branch in
Chattogram. However, it is important to acknowledge that there may be limitations, such as the
availability of data, time constraints, or restrictions on accessing certain information.

Overall, the study is expected to contribute to the existing body of knowledge in the banking
sector by providing valuable insights into the general banking activities of Mutual Trust Bank
PLC, Agrabad Branch, Chattogram. The report will be organized into sections such as an
introduction, literature review, methodology, findings, analysis, recommendations, and
conclusion to present a structured and comprehensive analysis of the bank's general banking
activities.

14
1.3 Objectives of the Study

Broad Objective:
The broad objective of Mutual Trust Bank PLC is to provide a comprehensive range of financial
services to individuals, businesses, and institutions while maintaining customer trust and
maximizing shareholder value. This includes offering banking services, wealth management
solutions, business financing, risk management, and exceptional customer service.

Specific Objectives:

1. To know about various theoretical aspects of general banking activities.

2. To discuss the policy and procedures of Mutual Trust Bank PLC
3. To know the products and services provided by the Mutual Trust Bank PLC
4. To examine the performance of the bank in terms of Current deposits, saving deposits,
short notice deposits, fixed deposits, and deposit schemes.

1.4. Methodology of the Study

In this report, both primary and secondary sources of data and information have been used.
Collected data and information have been studied and analyzed to make this report a meaningful
and presentable one. In this regard, both primary and secondary data sources are as follows:

Primary Source

 Practical work exposure in Mutual Trust Bank PLC

 Face to face conversation with bank officers
 Personal observation – during bank hours
 Discussion with the bank personnel.
 Face-to-face conversation with the customers.

Secondary Source

 Annual Report of Mutual Trust Bank PLC

 Bank records
 Official website of the Bank
 Internet sources

15
  Books

1.5 Scope of the study

This study is PLC to the program as a requirement of the program in Mutual Trust Bank PLC, ,
for completion of the internship. My main task was related to general banking. That is why I
have prepared the report on “General Banking activities”. As an intern, I was involved in the
general banking department to learn general banking activities.

1.6 Limitations of the study

While working in the general banking department for doing internship, I faced some limitations
which are-

 Lack of time: The period for the study was very short, which was not enough so I could
not go into in-depth analysis Sometimes the officials were busy & were not able to help
me properly with the whole banking system.
 Insufficient data: Some essential information could not be collected due to the
confidentiality of business.
 Area of General Banking: The GB area is very big and there are lots of customers here.
For that reason, all the information is not possible to collect.
 Lack of supervision: Few officials sometimes felt disturbed, when they were busy with
their tasks. Sometimes they didn’t want to supervise due to the pressure of the load. 
Collection of data was not smooth.

1.7 Scheme of the study

The report has been organized into five chapters.

1st Chapter has covered Background of the study, Rational of the study, Objective of the
Study, Methodology of the Study, Scope of the Study, Scheme of the study,
2nd Chapter has covered organizational history of Mutual Trust Bank PLC, MTB at a glance,
vision, mission, slogan, strategic objective, corporate philosophy and products & services of
MTB
3rd Chapter is on basically theoretical part. It has covered general banking activities of Mutual
Trust bank PLC

16
4th Chapter focused on Performance analysis general banking activities, of Mutual Trust Bank
PLC, 5th Chapter finally has covered Findings, Problems involved in general banking activities
at Mutual Trust Bank PLC, recommendations, conclusion.

CHAPTER- 02

A BRIEF PROFILE OF
MUTUAL TRUST BANK PLC

17
 2.1 History of MTB
Mutual Trust Bank PLC (MTB) is a leading private commercial bank based in Bangladesh. It
was established on September 29, 1999, as a public limited company under the Companies Act,
1994. MTB obtained its banking license from the Bangladesh Bank, the central bank of
Bangladesh, on October 5, 1999.

Since its inception, Mutual Trust Bank has been committed to providing innovative banking
solutions and superior customer service. The bank's vision is to be recognized as the "bank of
choice" in the markets it serves. MTB's mission is to deliver sustainable financial growth, build
long-term relationships, and create value for all stakeholders.

Over the years, Mutual Trust Bank has experienced significant growth and expansion. It has
developed a robust branch network across Bangladesh, with branches located in major cities and
commercial hubs. The bank offers a wide range of banking products and services, including retail
banking, corporate banking, SME banking, trade finance, remittance services, treasury
operations, and more.

MTB has built a strong reputation for its customer-centric approach and commitment to
technological advancements. The bank has embraced digital banking solutions to provide
convenient and efficient services to its customers. It offers internet banking, mobile banking, and
other digital platforms to facilitate seamless banking transactions.

In terms of corporate governance, Mutual Trust Bank has adopted best practices and operates
with transparency and accountability. The bank has a well-defined organizational structure, with
a board of directors overseeing its operations and strategic decision-making processes.

Mutual Trust Bank has received numerous accolades and recognition for its performance and
contribution to the banking industry. It has been awarded the Best Bank in Bangladesh by
prestigious international publications and organizations, showcasing its commitment to
excellence.

Throughout its history, Mutual Trust Bank has remained focused on fostering trust, building
strong relationships, and contributing to the economic development of Bangladesh. The bank
continues to innovate and adapt to the changing needs of its customers, positioning itself as a
leading player in the country's banking sector.

2.2 MTB at a Glance

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 Name Mutual Trust Bank PLC
Status Private PLC Company
Date of Incorporation October 05, 1999
Subscription for Shares September 29 , 2003
Head Office MTB Corporate Head Office (2nd Floor),
MTB Centre, 26 Gulshan Avenue,
Gulshan 1, Dhaka 1212
Chairman Mod. Abdul Malek
Number of Branches 120
Number of sub-Branches 33
Number of Employees 2,418
Service Provided Service Provided Deposit Scheme, Credit
Facility, and Foreign Exchange Services
Technology Used Member of SWIFT, Unix Based Software-pc
Banking, Online Banking
Authorized Capital BDT 10,000 million

Paid up Capital BDT 7,386 million

Website www.mutualtrustbank.com
SWIFT MTB BDDH XXX

Figure: 2.1

2.3 Vision of MTB

Mutual Trust Bank’s vision is based on a philosophy known as MTB3V. We envision MTB to be:

 One of the best performing banks in Bangladesh

 The bank of choice
 A truly world-class ban

2.4 Mission of MTB

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

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2.5: Core Values of MTB
 Commitment:
 Shareholders – Create sustainable economic value for our shareholders by
utilizing an honest and efficient business methodology.
 Community – Committed to serve the society through employment creation,
support community projects and events and be a responsible corporate citizen.
 Customers – Render state-of-the-art service to our customers by offering
diversified products and by aspiring to fulfill their banking needs to the best of
our abilities.
 Employees – We rely on the inherent merits of the employee and honor our
relation as a part of this renowned financial institution. We work together to
celebrate and reward unique backgrounds, viewpoints, skills and talents of
everyone at the work place, no matter what their job is.

 Accountability:

As a bank, MTB is judged solely by the successful execution of our

commitments; we expect and embrace this form of judgment. MTB is accountable
for providing the highest level of service along with meeting the strict
requirements of regulatory standards and ethical business practices.

 Agility: MTB can see things from different perspectives; MTB is open to
change and not bound by how it has done things in the past. MTB can
respond rapidly and adjust our mode of operation to meet stakeholder needs
and achieve our goals.
 Trust: MTB values mutual trust, which encompasses transparent and candid
communications among all parties.

2.6 Slogan
The slogan of Mutual Trust Bank is 'You Can Bank On Us’.

2.7 Strategic Objectives

 To increase shareholders value
 To achieve economic value addition
 To be the market leader in product innovation
 To be one of the top three financial institutions in Bangladesh in terms of
efficiency.

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  To be one of the top five financial institutions in Bangladesh in terms of market
share in all significant market segments we serve

2.8 Corporate Philosophy

As a bank, MTB is judged solely by the successful execution of our commitments; we expect and
embrace this form of judgment. MTB is accountable for providing the highest level of service
along with meeting the strict requirements of regulatory standards and ethical business practices

2.9 Products & Services of Mutual Trust Bank PLC

2.9.1. Consumer Banking Products

MTB aims to satisfy all clients, regardless of how big or small they may be. Individuals are
counseled on the best type of accounts suitable to them such as Current, Savings, Short Term
Deposits, Fixed Deposits, Consumer Asset and Liability Products, etc. Apart from the
conventional banking operations MTB strives to introduce an array of products and services
and already launched a number of consumer banking products with the aim of popularizing
consumer banking operations and offer higher return to its clients.

2.9.2. MTB Consumer Banking Products are:

 Brick by Brick Savings Scheme
 Monthly Benefit Plan
 Save Everyday Plan
 Children’s Education Plan
 Consumer Credit Scheme
 Best Invest Plan

Ø Brick by Brick Savings Scheme

Drops of water make an ocean. People’s habit of regular savings will provide their comfort in
the future. 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 installments are Tk. 500/= 1,000/=, 2,000/=, 5,000/= and thereafter in multiples of

21
Tk.500. People 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 they must ensure
that their account has sufficient balance within the 10th of each month. This plan is so
flexible the maturity they can earn a handsome amount depending on the size of installment
amount of savings and tenure.

Ø Monthly Benefit Plan

This plan offers to generate monthly income out of 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. People will require opening a savings/current
account. Monthly income will be credited to their account.
A few examples of deposit and income are given below:

Figure 2.2
Source: www. mutualtrustbank.com
Ø Save Everyday Plan
Mutual Trust Bank offers "Save Everyday" Plan. The primary advantage of this plan is that
consumers are absolutely free to choose their own time for depositing money into this
account. They can deposit daily, weekly or monthly. The choice is theirs, but the transactions
will have to be within the Bank's transaction hour. This is a 5-year plan and they will be
required to open the account with an initial deposit of Tk. 2500/= only. Banks offer their very
attractive interest rate which is accrued in this account on a daily basis.

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Ø Children’s Education Plan
Education is the backbone of any nation and one of the primary factors of prosperity. An
educated nation stands tall in the committee of nations and saving money for the future is a
common practice in any society. Savings help everyone to build a better tomorrow. Regular
saving makes a man become disciplined, Confident and successful. A child's education is of
prime importance and every parent should ensure and make every effort to get their child
educated. To admit a child in a good institution parent, require adequate amount of savings
for the cost of admission into a school. This plan allows new parents to save for 4/7/9/12
years. The parent can deposit any amount of money at any day of the month. The interest rate
is very lucrative and MTB offers substantially more than the current savings rate.

Ø Consumer Credit
MTB includes different types of plans. For like that-

 MTB Double Saver Plan

MTB Double Saver Plan offers a one-time savings scheme, which will provide the people
double the amount of their deposit after six and a half (4.5) years. People will receive a
handsome amount at maturity. If they are an individual or if their institution is an NGO or an
Educational institution or a Trust or Society or any other institution, they may invest their
savings in this scheme with a minimum deposit of Tk. 10,000/- for six and a half (4.5) years
with no limit for maximum amount. At maturity consumer will get double of their deposited
amount along with a gift item. They can even avail loan up to 90% of the deposited amount.

 MTB Triple Saver Plan

MTB Triple Saver Plan offers a one time savings scheme, which will provide them three
times of their deposit after ten (10) years. People will receive a big amount at maturity. If
they are an individual or if their institution is an NGO or an Educational institution or a Trust
or Society or any other institution, they may invest their savings in this scheme with a

23
minimum deposit of Tk. 10,000/- for ten (10) years with no limit for maximum amount. At
maturity customer will get three times of their deposited amount along with a gift item. They
can even avail loan up to 90% of the deposited amount.

 MTB Millionaire Plan

Millionaire Plan is a monthly savings plan, which is designed to make a millionaire in a few
years. If people are an individual or if their institution is an NGO or an Educational
institution or a Trust or Society or any other institution, they may invest their savings in this
scheme for 6/8/10/12/15/20 years with different installment sizes. At maturity they will get
Tk. 10, 00,000/-. They can even avail loan up to 90% of the deposited amount after 1(one
year).

 Unique Saving Plan

Unique Savings Plan is any day, any amount savings plan. The beauty of this plan is that a
customer can deposit any day, any time and any amount. Unique Savings Plan offers people
to deposit any amount of their 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 them at the
time of any emergency. They can withdraw 50% of the deposited balance for once a month.
At maturity they will get a handsome amount.

 Best Invest
Best Invest offers people efficient high return investment plan. This plan helps them to build
up a sizeable income in easy and affordable installments. Best Invest offers two separate and
convenient term deposit periods for 4 years and 6 years respectively. This plan allows them
to own 5 times the initial invested amount. Best Invest is available in units worth Tk.50,
000/- each. They 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/-. This is a unique high return plan catering to all income groups.

24
2.9.3. Banking services
Ø Online Banking Service
Mutual Trust Bank is playing a pioneering role among its competitors in providing real time
online banking facilities to its customers. Mutual Trust Bank online banking offers a
customer to deposit or withdraw any sum of money from any branch anywhere. Any account
holder having an account with the bank can avail this service.
§ Facilities available at present

o Access account from anywhere in the world through a telephone.

o Ability to make balance inquiries without visiting the bank.

o Ability to listen to last 5 transaction detail over the phone.

o Provides a language selection being available in English and Bangla.

Ø MTB Tele Banking Services

The centralized Tele Banking service introduced in the Bank brings a world of banking
convenience to the customers. Through the Tele Banking System, customers can access their
Bank Accounts over the telephone on a 24X7 basis. The facility is secure as the customer is
given a unique identification number to access his bank account through the telephone. The voice
response system prompts the customer to dial the digits that will help him/ her meet his
requirement of placing instructions or retrieving account information.

Ø SWIFT Services
The Society for Worldwide Inter-bank Financial Telecommunication or S.W.I.F.T. is a worldwide
community. 7,800 financial institutions in 200 countries connected to one another through
SWIFT. In their own word SWIFT "consistently delivers quantifiable business value and proven
technical excellence to its members through its comprehensive messaging standards, the security,
reliability and „five nines‟ availability of its messaging platform and its role in advancing STP.
The guiding principles of SWIFT are clear: to offer the financial services industry a common

25
platform of advanced technology and access to shared solutions through which each member can
build its competitive edge." Mutual Trust Bank has already become the member of SWIFT
community and has started its operation from March 2004. With introduction of SWIFT, MTB
ensures its customers the quickest and most secured financial transaction around the world.

Ø Pay Order
MTB provide this type of service. When clients want to give money to
others for any purpose, they can give pay order. It is safe because they
should not carry the money and the receivers can Ancash the money. There
is no option for dishonor, the client has to deposit money before do PO.
The commission of the PO is given below:

Figure 2.3

Source: www. mutualtrustbank.com

Ø Demand Draft (DD) Issue

Sometimes customers use demand draft for the transfer of money from one place to another. It is
must need for sending money outside Dhaka city. MTB charges 15% commission on the face
value of DD as service charge.
Ø MTB SMS Banking
“MTB SMS Banking brings your account to your fingertips” --- MTB Group. It enables
customers to send and receive textual information anywhere 7 days a week and 24 hours a day. It

26
allows them to access information as well as receive transaction alerts on their account by using
their mobile phone.
Facilities available at present
 Access of account from anywhere in the world through a mobile phone.
 Ability to make balance inquiries without visiting the bank.
 Ability to receive mini statement of last 5 transactions.
 Transaction Alert lets customers get informed whenever there is an ATM/ POS
transaction on their account.

Ø Locker Service
MTB provide locker service to their clients. Clients can rent a locker for one
year. Every year they have to pay a fee. They can keep any documents,
ornaments and valuable thing in the locker. One key is given to the clients.
There are three types of lockers at MTB: small, medium and big. The fee of
this locker is Taka 1500, 2000, and 2500

Ø Credit Card Service

• Bank Name: Mutual Trust Bank

• Card Type: Local gold & Local Classic credit card.

• Description:
 50% Cash Advance facility.
 Useable at all ATMs bearing Visa logo.
 5000 outlets for shopping in Bangladesh.
 Buy now pays later.
 Up to 45 Days Interest free period.

Ø Visa Electronic Debit Card Service

• Bank Name: Mutual Trust Bank

• Card Type: Debit Card

• Description: MTB Visa Electron Card will be offered to each and every Savings,

27
Current & STD Account holders of the Bank. This electron Card can be used at any Dutch-
Bangla Bank’s ATM all over the country.
 No card fee for first year.
 No transaction fees on POS & DBBL ATMs.
 No time bindings for cash withdrawal.
 No need to come to Branch for cash withdrawals.
 There are 5000 outlets for shopping in Bangladesh.

2.9.4 Organizational hierarchy Mutual Trust Bank PLC

Figure2.4
Source: www. mutualtrustbank.com

28
 .

CHAPTER-03
GENERAL BANKING ACTIVITIES &
POLICIES OF MTB

29
 3.1. Introduction of General Banking
Financial institution/ intermediary that mediates or stands between ultimate borrowers and
ultimate lenders is knows as banking financial institution. Banks perform this function in two
ways- taking deposits from various areas in different forms and lending that accumulated amount
of money to the potential investors in other different forms. General Banking is the starting point
of all the banking operating. General Banking department aids in taking deposits and
simultaneously provides some ancillaries services. It provides those customers who come
frequently and those customers who come one time in banking for enjoying ancillary services. In
some general banking activities, there is no relation between banker and customers who will take
only one service form Bank. On the other hand, there are some customers with who bank are
doing its business frequently. It is the department, which provides day-to-day services to the
customers. Every day it receives deposits from the customers and meets their demand for cash by
honoring cheques. It opens new accounts, demit funds, issue bank drafts and pay orders etc. since
bank in confined to provide the service everyday general banking is also known as retail banking.

General Banking consists three different sections in this branch. These are:

Ø Front Desk
Ø Accounts Department
Ø Cash Counter Section

3.2. Front Desk

3.2.1. Accepting Deposits

Accepting deposits is one of the two classic functions of commercial banks. The relationship
between a banker and his customer begins with the opening of an account by the former in the
name of the latter. Initially all the accounts are opened with a deposit of money by the customer

30
and hence these accounts are called deposits accounts. Banker solicits deposits from the members
of the public belonging to different lifestyles, engaged in numerous economic activities and
having different financial status. There are four officers performing various functions in front
desk.

3.2.2. Types of Accounts

There are different types of account in a bank. Mutual Trust Bank Limited has the following
types of accounts:
Ø Current Deposit
Ø Savings Deposit
Ø Short Term Deposit
Ø Fixed Deposit Receipt

3.2.2.1. Current Deposit

The principal branch of MTB is giving the privilege of their clients with different types of
Current Deposit Account. These accounts can be of four types. They are:
ü Individual Account
ü Joint Account
ü Proprietor Ship Account

ü Limited Company Account

The Interest rate is 4.25% for these accounts.

Rules of Current Deposit Account

 A minimum initial deposit of Tk.5000/= shall be required for opening a Current Deposit
Account.
 Withdrawal of money by the customer from the account shall be allowed only

31
 through the leaves of the cheque book issued by the bank.
 Signature of the customer on the cheque leaf for withdrawal of money shall have to be
tailed with the specimen signature recorded with the bank.
 Payment, in no way, shall be allowed against advance/ postdated and torn cheque.
 The statement of account as furnished by the bank shall be presumed as correct, if no
objection to the same is raised by the customer within a week of receipt of the statement.
 Bank shall accept order of the customer for stop payment of a cheque and exercise utmost
care for meticulous compliance of the said order. But Bank shall not be made liable/
responsible, if the said order remains unnoticed inadvertently.
 Bank shall take maximum care and remain alert to record exactly all the transactions of
both credit and debit in the Ledger with no fault. However, in case of any mistake/ lapse
bank shall reserve the right to rectify the same and recover the money from the customer
without any reference/ notice to the customer. Bank shall not make liable for any loss/
inconveniences caused to the customer due to such error/ mistake/ lapses.
 Bank shall charge incidental expenses and recover the same from the account once after
every 6 months for maintenance of the account. In case of closure of any account within 6
months from the date of opening of the same, bank shall deduct Tk.50/= from the account
prior to its closure.
 Receipt against any cheque/money/ instruments/ book securities duly signed by the
authorized official of the bank shall be considered as legal one.
 Bank shall reserve the right to close down any account, if the operation of the same
appears to be unsatisfactory. Moreover, Bank may close any account on other genuine
grounds without assigning reason thereof.

3.2.2.2. Savings Deposit

The Interest Rate for Savings Deposit is 4.50%. There are four types of savings.

 Individual Account
 Joint Account
 Proprietor Ship Account
 Limited Company Account

32
3.2.2.3. Short Term Deposit
The Interest Rate for Savings Deposit is 4.00%. There are four types of savings.

ü Joint Account

ü Proprietor Ship Account

ü Limited Company Account

3.2.2.4. Fixed Deposit Receipt

Fixed Deposit Receipt (FDR) is one, which is repayable after the expiry of a predetermined
period fixed by him. The period varies from 1 month to 12 months. These deposits are not
repayable on demand but they are withdrawing able subject to a period of notice. Hence, it is a
popularly known as “Time Deposit‟ or “Time Liabilities”. Normally the money on a fixed
deposit is not repayable before the expiry of a fixed period. Before opening a Fixed Deposit
Account, a customer has to fill up an application form which contains the followings:

 Amount in figures
 Beneficiary’s name and address
 Period
 Rate of interest
 Date of issue
 Date of maturity
ü Instructions:
 To be renewed automatically with interest for the next period.
 Not to be renewed for next period.

 Pay interest to account no. (-------) on maturity

 Special instruction
 How the account will be operated (singly or jointly)
 Signature (s) ü FDR no.

33
Then an FDR account is opened and it is recorded in the FDR Register which contains the
following information:
 FDR A/C no.
 FDR (Fixed Deposit Receipt) no.
 Name of the FDR Holder with address.
 Maturity period.
 Maturity date.
 Interest rate

In case of Fixed Deposit Account, the Bank needs to maintain a cash reserve. So, MTB offers a
high interest rate in Fixed Deposit accounts.

The interest rates followed by MTB in Fixed Deposit accounts are:

Figure 3.1
Source: www. mutualtrustbank.com

3.2.3. Account Opening

To become the client of the bank a person needs to open an Account. After opening of an
account, a person becomes a client of a bank. It is a legal contract between the bank and the
client. Through this contract a client is ready to deposit any sum of money with purchasing the
belief from the bank. Therefore, it means the bank is selling their belief and always ready to pay

34
any sum of deposited money of any client. An accounting opening from is the contractual
document. It is the legal of Banker-Client relationship.

3.2.3.1. Prerequisites for Opening an Account of a Person

 Photocopy of passport or word Commissioner Certificate.

 Passport size 2 (two) copies color photograph attested by the introducer.
 Introducing the account by a person who maintaining a current account with this branch.

3.2.3.2. Prerequisites for Opening an Account of a Private Limited Company

 Board resolution regarding opening of account and mentioning authorized persons

for operation of the same.
 Valid and up to date trade license.
 Memorandum and articles of association duly signed by the register of joint stock
company with seal.
 Certificate of incorporation.
 TIN and up to date TAX clearance certificate.
 List of directors on the company’s letter head pad.
 Passport size 2 (two) copies color photograph of all the directors.
 Introducing the account by person/ company/ firm who maintaining a current account
with this branch.
 Certificate of commencement of business.

3.2.3. 3.Procedures of Opening an Account

 Before opening an account, the following formalities have to be completed by the

customer:
 Apply on a prescribed form.

35
  An acceptable introduction by an introducer which is acceptable by the bank is required
prior to opening of any account.
 Two copies of recent photograph of the account holder’s duty attested by the introducer
must be produced.
 The customer has to give three specimen signatures in the “Specimen signature card.”
 The minimum balance has to be maintained in the current is Tk. 5,000.00 and in saving
account is Tk. 1,000.

3.2.4. Issuing Cheque Book to the Customers

After the completion of above formalities, the bank provides the client a Deposit Book and
cheque book. The cheque book can be of 10 or 25 pages. It will depend on the type of the
account. The 10 pages cheque book is issued to the Saving A/C holder and 20 pages cheque book
is issued to the Current or STD A/C holder. The client has to fill up the Requisition Slip for
cheque book. Then the officer will take a new cheque book with filling up account number of the
client and the branch name in each page of the cheque book. The name and the account number
of the client are then registered in the “Cheque book issue register.” The serial number of the
cheque book is also entered in the computer for proper maintenance of records.

Issue of Fresh Cheque Book

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

36
 Source: www. mutualtrustbank.com

Issue of New Cheque Book (for old account)

All the procedure for issuing a new Cheque book for old account is same as the procedure of new
account. Only difference is that customer have to submit the requisition slip of the old Cheque
book with date, signature and his/her address. Computer posting is then given to the requisition
slip to know the position of account and to know how many leaf/leaves still not used. The
number of new Cheque book is entered on the back of the old requisition slip and is signed by
the officer.

Issue of Duplicate Cheque Book

Duplicate cheque book instead of lost one should be issued only when an A/C holder personally
approaches the Bank with an application Letter of Indemnity in the prescribed Performa agreeing
to indemnify the Bank for the lost cheque book. Fresh cheque Book in lieu of lost one should be
issued after verification of the signature of the Account holder from the Specimen signature card
and on realization of required Excise duty only with prior approval of manager of the branch.
Cheque series number of the new cheque book should be recorded in ledger card and signature

37
card as usual. Series number of lost cheque book should be recorded in the stop payment register
and caution should be exercised to guard against fraudulent payment.

3.2.5. Transfer of an Account

The procedures of transferring an account are:

 The customer submits an application mentioning the name of the branch to which he
wants the account to be transferred.
 His signature cards, advice of new account and all relevant documents are sent to that
branch through registered post.
 The balance standing at credit in customer’s account is sent to the other branch through
Inter Branch Credit Advice (IBCA).
 No exchange should be charged on such transfer.
 Attention is also given in this connection.

3.2.4. Closing of an Account

Upon the request of a customer, an account can be closed. After receiving an application from the
customer to close an Account, the following procedure is followed by a banker.

 The customer should be asked to draw the final cheque for the amount standing to the
credit of his a/c less the amount of closing and other incidental charges and surrender the
unused cheque leaves.
 The a/c should be debited for the account closing charges etc. and an authorized officer of
the Bank should destroy unused cheque leaves.
 In case of joint a/c, the application for closing the a/c should be signed by all the joint
holders.

A banker can also close the account of his customer or stop the operation of the account under
following considerable circumstances:
 Death of customer.

38
  Customer’s insanity and insolvency.
 Order of the court (Garnishee order).
 Specific charge for fraud forgery.

3.2.7. Stop Payment of Cheque

A banker can stop payment of cheque of his customer under following considerable
circumstances:

 Firstly, the account holder will apply to stop the payment of his cheque
ü There is a register for this purpose. It is kept by the authorized officer.
 The officer will see the condition of account and verify everything.
 In the ledger book, the officer will mark with red ink and the cheque will not be paid.

3.2.8. Dishonor of Cheque

If the cheque is dishonored, MTB sends a memorandum (cheque return memo) to the customer
stating the reason in the following way:

 Refer to drawer.
 Not arranged for.
 Effects not cleared May be present again.
 Exceeds arrangements.
 Full cover not received.
 Payment stopped by drawer.
 Payee’s endorsement irregular/illegible/required.
 Payee’s endorsement irregular, require Bank’s confirmation.
 Drawer’s signature differs/ required.
 Alterations in date/figures/words require drawer’s full signature.

39
  Cheque is posts dated/out of date/mutilated.
 Amount in words and figures differs.
 Crossed cheque must be present through a bank.
 Clearing stamps required/requires cancellation.
 Addition to the discharge of Bank should be authenticating.
 Cheque crossed “Account Payee Only”.
 Collecting Bank’s discharge irregular/required.

If the cheque is dishonored due to insufficiency of funds, then MTB inform the a/c holder
immediately.

3.2.9. Dispatch Section

Those documents that are enter in the branch or exit of the branch must go through this section.
The objectives of this section are:

 Keeping records of the documents send to other branches or banks.

 Sending letters to their respective destination.
 Send these documents safely and correctly.
 Receives documents come through different medium, such as postal service, courier
service, via messenger etc.
 Dispatch section of Any branch performs another duty. It enters the transfer instruments
in the Scroll Book and then sends those to the computer section.
 Two types of letters are continuously received. These are:
 Inward (Registered/Unregistered) letters
 Outward (Registered/ Unregistered) letters

At first recording is required whether it is Inward or Outward Registered/Unregistered letters.

Then letters are disbursed to their respective destination. Inward letters are firstly segmented
according to their different sections and after that an entry is given to the Inward Register book.
Books Maintained
 Local Dispatch Khata (including Peon Book).

40
  Register Dispatch Khata (For Registered Letters).
 Ordinary Register Khata (For Unregistered letters).
 Inward Register Books.
 Outward registered books.

3.3 Accounts Department
MTB Any Branch receives different types of instruments, such as cheque, PO, DD etc. from its
customers for collection. It also pays on behalf of its customers for those instruments that come
to it through clearing house. There is a counter for Accounts department which is called Cheque
counter. In this counter three types of Cheque are received:
3.3.1. Transfer
All such instruments drawn on easily accessible local Branches of MTB and deposited for credit
of customer's account are treated as "Transfer Delivery".

3.3.2. Clearing
The number of Cheques, Pay Order (P.O), and Demand Draft (D.D) Collection from other banks
on behalf of its customer is a basic function of a Clearing Department.

Clearing: Clearing is a system by which a bank can collect customers fund from one bank
to another through clearing house.
Clearing House: Clearing House is a place where the representatives of different banks
get together to receive and deliver Cheques with another banks.

Normally, Bangladesh Bank performs the Clearing House in Dhaka, Chittagong, Rajshahi,
Khulna and Bogra. Where there is no branch of Bangladesh Bank, Sonali bank arranges this
function.

3.3.2.1. Member of Clearing House:

Mutual Trust Bank Limited is a scheduled Bank. According to the Article 37(2) of Bangladesh
Bank Order, 1972, the banks which are the member of the clearinghouse are called as Scheduled

41
Banks. The scheduled banks clear the cheque drawn upon one another through the clearing
house.

3.3.2.2. Types of Clearing

Outward Clearing: When the Branches of a Bank receive cheques from its customers
drawn on the other Banks within the local clearing zone for collection through Clearing
House, it is Outward Clearing.

Any branch of Principle branch of Specific branch of

MTB specific bank that bank
e.g. prime bank

Principal branch Sonali bank

of MTB (clearing house)

Source: www. mutualtrustbank.com

Inward Clearing: When the Banks receive cheque drawn on them from other Banks in the
Clearing House, it is Inward Clearing.

Any branch of Principle branch of Specific bank of

MTB that bank any other
e.g. prime bank Bank
Principal branch

Principle branch of Principle branch of

MTB bank specific bank
e.g. prime bank

Source: www. mutualtrustbank.com

42
3.3.2.3. Cheque Depositor for Clearing
Only the regular customers i.e. who have Savings, Current, STD & Loan Account in the bank can
deposit cheque for collection of funds through clearing house.

3.3.3. Bills Collection

In modern banking the mechanism has become complex as far as smooth transaction and safety
is concerned. Customer does pay and receive bill from their counterpart as a result of transaction.
Commercial bank’s duty is to collect bills on behalf of their customer.

3.3.3.1. Types of Bills for Collection

Outward Bills for Collection (OBC)

OBC means Outward Bills for Collection. OBC exists with different branches of different banks
outside the local clearinghouse. Normally two types of OBC:
 OBC with different branches of other banks
 OBC with different branches of the same bank
Inward Bills for Collection (IBC)

When the banks collect bills as an agent of the collecting branch, the system is known as IBC. In
this case the bank will work as an agent of the collection bank. The branch receives a forwarding
letter and the bill.

3.4 Cash Section

Cash is the key instrument of all financial transaction. The cash section plays a significant
role. It is a very sensitive part of the bank because it deals with most liquid assets. Mutual
Trust Bank Limited, Principal Branch has a well equip cash section. This section receives
cash from depositors and pays cash against cheque, Demand draft, pay order, and Pay-in Slip
over the counter. This section deals with all types of negotiable instrument and it includes
Vault, used as the store of cash and instruments. The Vault is insured up to Tk.3 million.
Operation of this section begins with the banking hour. The cash officer begins transaction
with taking money from the Vault, known as “Operating Cash Balance.” Vault is kept in most

43
secured place. The amount of opening cash balance is entered into a register. After whole
days‟ transaction, the money remains in the cash counter is deposited back into the Vault,
known as the closing balance. The main functions of this section are cash receipt and cash
payment.
3.4.1Cash Payment
 When a client comes to the bank to cash a cheque, he/she gives it to the cash counter.
 The cash officer receives the cheque and checks it very carefully.
 The cash officer checks the date of the cheque, name, the account number of the cheque,
amount in ward in figure and also verifies the signature through computer.
 If the instrument is free of all kinds of errors the respected officer will ask the cheque
bearer to sign on the back of it.
 He/ she will then put his/ her initial beside the bearer’s signature.
 There must be two signatures in cash payment cheque. If it is a big amount, cheque must
be verified in front of the cash officer.

Every employee in the cash counter maintains a sheet. After receiving payment, they fill up the
following particulars:

 Serial Number
 Account Number
 Amount
 Initial

After giving the payments they fill up the following particulars:

 Serial Number
 Account Number
 Cheque Number
 Amount
 Initial

44
3.4.2. Cash Receipt
 At first depositor fills up the deposit amount in slip.
 After filling the required deposit amount in slip, depositor deposits the money.
 Officer of the cash counter receives the money, counts it, enters the amount of money in
the scroll register, makes seal the deposit in slip and sign on with the date.
 Then this slip is passed to another officer for double sign in the deposit slip.
 Then the cash officer keeps the bank’s part of the slip. Other part is given to the depositor.
 The cash in charge gives posting through computer from the deposit slip in the
client’s account and write a transaction number.

3.5 Islamic Banking

Alhamdulillah, Mutual Trust Bank has started its 'Islamic Banking Operations ‟ YAQEEN‟ with
the aim to serve the customers who prefer Islamic Shariah Based Banking and committed to
Islamic lifestyles by taking the formal permission from Bangladesh Bank for Islamic banking
window operations. Mutual Trust Bank PLC has started its Islamic Banking operations formally
on 12th May,2021 with 10 (ten) no’s of Islamic Banking Windows (IBWs). Gradually, MTB has
expanded its Islamic Banking network over the country by opening more 35 Islamic Banking
Windows (IBWs) during the year 2020 & 2021. The bank now operates 45 IBWs and a full-
fledged Islamic Banking Branch since September 2022. Mutual Trust Bank also started their
Islamic banking operation and most customers also opening a Mudaraba term deposit account.

 Yaqeen Current Account

MTB Yaqeen Al-Wadee’ah Current Account is operated under the Shari’ah compliant mode of
Wadee’ah Yad Dhamanah that offers safekeeping of the deposits of our clients. The deposited
money is utilized by MTB Yaqeen at its own risk in Sharia’s compliant financing activities.
Depositors do not bear any risk or earn profit. MTB Yaqeen guarantees the principal number of
depositors, and is under obligation to return the deposited money on demand by the clients.

Features:
 Any Bangladeshi citizen/resident aged 18 years or above can open an account.
 Legal guardians can open & operate an account on behalf of a minor.
 Minimum opening deposit: BDT 1000.
 Minimum balance required to maintain an account: BDT 1000.
 Complimentary Services:

45
  Debit Card (1st Year)
 Account Statement on half yearly basis
 Internet Banking
 Cheque Book (1st 10 Pages)
 Countrywide Online Transaction

 Yaqeen Savings Account

The depositor is the ‘Rab-ul-Maal’ and the Bank is the ‘Mudarib’ or User of the funds deposited
by the customers.

MTB Yaqeen Savings Account is. operated dunder Shari’ah compliant mode of Mudarabah, a
form of partnership between the client and MTB Yaqeen. The depositor is the ‘Rab-ul-Maal’ or
capital provider and the bank is the ‘Mudarib’ or user of the client’s funds. MTB Yaqeen
allocates the funds to a deposit pool which is utilized under Sharia’s compliant modes of
financing. Income from such financing activities is distributed between MTB Yaqeen and its
client as per pre-agreed Income Sharing Ratio (ISR).

Key Features:

 Any Bangladeshi citizen/resident aged 18 years or above can open an account.

 Legal guardians can open & operate an account on behalf of a minor.
 Minimum opening deposit: BDT 500.
 Minimum balance required to maintain an account: BDT 500.
 No minimum balance is required to earn profit.
 Profit rate is derived from the pre-agreed Income Sharing Ratio (ISR) on a monthly basis.
 Profit rate may vary with any variation in bank’s income.
 Complimentary Services:
 Debit Card (1st Year)
 Account Statement on half yearly basis
 Internet Banking
 Cheque Book (1st 10 Pages)
 Countrywide Online Transaction

 Yaqeen Ujrah Card

Ujrah Card is a Shari’ah-compliant alternative to conventional credit cards

46
MTB Yaqeen Ujrah Card is a Shari’ah-compliant alternative to conventional credit cards. This
product has been designed on the basis of ‘Ujrah’ concept, which refers to a fixed-fee structure.
Ujrah cardholders will have to pay a fixed Monthly Maintenance Fee (MMF) based on the types
of the cards they use (gold, platinum, signature), irrespective of the cards’ outstanding balance .

3.6 SERVICES

3.6.1 Online Banking

Online Banking has been facilitated in all Branches of the Bank since January 01, 2004. Now,
customers can enjoy a number online Banking services in CD, SB, SND, Loan accounts and
Monthly Savings Scheme (MSS) accounts. We are currently offering the following Online
Banking Services:
 Cash deposit and withdrawals
 Transfer between accounts by Cheque
 Online clearing transactions

Online Banking Times

 Sunday to Thursday: 10 am to 4 pm
 Saturday: 10 am to 2 pm (Only in open branches)
 Charges for Online Banking (As per Instruction Circular No. 1771 dated June 8,
2017)
 Charges for Online Banking Services are being realized based on total amount of
online transactions on half yearly basis as per the following table except for
School Banking, Financial Inclusion and Monthly Savings Scheme (MSS)
Accounts
Type of Account Charge Amount (Half yearly Basis)
(Total amount of On-line transaction) BDT 0 to BDT 10
Current, SND and Cheque Lac. BDT 100 Above BDT 10 Lac to BDT 1 Cr. BDT
Bearing Loan Account 500 Above BDT 1Cr to BDT 5 Cr. BDT 2000 Above
BDT 5 Cr BDT 5000

(Total amount of On-line transaction) BDT 0 to BDT 10

Savings Account Lac. BDT 100 Above BDT 10 Lac to BDT 1 Cr. BDT
500 Above BDT 1Cr to BDT 5 Cr. BDT 1000 Above

47
 BDT 5 Cr BDT 2000
Source: Branch data

3.6.2 SMS Alert Service

We have introduced the SMS Alert Service in early 2015 that generates SMS for customers for
transactions in their accounts in Temenos T24. SMS Alert service is designed to enable our
customers to closely and securely monitor their transactions real time by instant messages on
their local/international mobile phone.

3.6.3 MTB App

Now days the terms “Online Banking” is gradually transforming to the popular concept of
“Digital Banking”. Digitization is not an option for banking industry; rather it is inevitable
because of technological advancement, where a customer can have the desired services not even
coming to the Bank Branch. With it continues efforts of being updated with the demand of
technology and time Mutual Trust Bank PLC introduces Digital Banking Platform called “MTB
Rainbow” which will facilitate customers to accomplish their Banking needs. To ensure fast, safe
and convenient banking without physical presence, Mutual Trust Bank has introduced this
initiative. Customers can download the App from 'Google' or 'Apple' Play Store by using a smart
phone and can open bank account and enjoy anytime and anywhere banking across the country.
Customers can do transactions; MTB to MTB Account Fund Transfer, Utility Bill Payment,
Mobile Top up, Money withdrawal through QR Code, Online Purchase, Agent Banking and My
cash transaction etc. Customer can also pay MTB Credit card bill, Deposit Scheme installment,
view account statement and locate all branches and ATM booths. In this Digital Banking
Platform we have created a single umbrella for all of our segmented customers i.e. Core Banking
Customers, Agent Banking Customers, MY Cash customers and even our Card customers.

Features
 Open MTB Account (Individual Savings Account Only )
 Digital KYC, e-KYC verification with a very convenient way
 Digitize your account with a very fast and convenient way
 Real time Funds Transfer within the MTB
 Transfer funds to other Banks through BEFTN
 View all of your accounts with balance
 View account summary
 Mobile top-ups
 Pay utility bills
 MTB Credit Card Bill Payment
 Buy domestic air tickets, movie tickets and many more

48
  QR Branch cash withdrawal
 QR Merchant Payment
 Locate branches and ATMs on Google Map
 PIN Change
 Bangla and English as language
 Many more digital ways of doing banking.

3.6.4 ATM Card
Mutual Trust Bank PLC‟s Card & ADC Division has been at the forefront of providing modern
banking facilities to its customers. The bank’s foray into the card business began in 2002,
followed by the launch of ATM services in 2004 through its participation in the Local Network
Q-Cash Consortium. In 2006, the bank became the principal member of Visa Worldwide Pte.
Limited (Visa International) and started issuing Visa Card. MTB Chattogram branch offer 3
types of card Debit card, Credit card, dual card

Debit card
Enjoy the convenience of cashless shopping with Mutual Trust bank Visa debit card. With your
Mutual Trust Bank Visa debit card, you get access to your account whenever and wherever you
want. You can use it to purchase goods at merchant establishments, for making payment online
and withdraw cash from ATM in Bangladesh.
Features & Benefits
Cash Withdrawal from ATM
Shopping at Merchant Establishment
Balance Inquiry
Mini Statement
Transaction Alert
E-Commerce Payments
24-hour Contact Center
Great discount

Eligibility
If you are an individual and have a savings or current account at any branch of Mutual Trust
Bank PLC, you are eligible to apply Mutual Trust Bank Visa debit card. Just contact your nearest
branch, collect an application form and submit duly filled up form. Within a short time, you will
be notified to pick up your card from your designated branch where you opened the account.

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Daily Transaction Limit
Daily cash transaction limit from ATM is BDT 100,000/- in maximum 5 transactions.

Dual Card (Two in one)

Single card with double benefits. No hassle to carry two cards (local and international). A single
Credit Card can be used both locally and internationally to withdraw cash from ATM and for
POS transaction. This is the special feature of MTB Visa card.

Credit card Facility

Mutual Trust Bank PLC visa credit card offers maximum 45 days credit facilities free of interest
and minimum payment is 5% of outstanding billing payment for easy repayment and
convenience of the customers.

Cash advance fee

 MTB Card to MTB ATM: No cash advance fee
 MTB Card to other Q-cash ATM: Tk. 10 per transaction
 NPSB Network: Tk. 15 per transaction
 MTB Card to other VISA ATM: Tk.40 per transaction
 For international Card: USD 3 or 2% of transaction amount whichever is high

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3.7 General Banking Policy
A bank's General Banking Policy is a comprehensive document that outlines the overarching
guidelines, principles, and strategies that govern its day-to-day operations and interactions with
customers. This policy serves as a foundational framework for the bank's approach to various
aspects of banking. Here are some key components typically covered in a bank's General
Banking Policy:

 Customer Service: Defines the bank's commitment to providing excellent customer

service, including responsiveness to customer inquiries, dispute resolution procedures,
and measures to ensure customer satisfaction.

 Account Opening and Management: Outlines the procedures and requirements for
opening and maintaining various types of accounts, such as savings accounts, checking
accounts, and certificates of deposit.

 Lending Practices: Establishes the bank's lending policies, including the types of loans
offered, eligibility criteria, interest rates, repayment terms, and collateral requirements.

 Risk Management: Addresses risk assessment and management practices, including

credit risk, operational risk, market risk, and compliance with regulatory requirements.

 Regulatory Compliance: Ensures that the bank adheres to all applicable banking
regulations, including anti-money laundering (AML) and know-your-customer (KYC)
procedures.

 Technology and Security: Covers the use of technology in banking operations,

emphasizing cyber security measures and data protection to safeguard customer
information.

 Financial Products and Services: Details the range of financial products and services
offered by the bank, such as online banking, mobile banking, credit cards, and investment
services.

 Fees: Defines fees associated with various services, such as wire transfers, account
maintenance, and overdrafts.

 Complaint Resolution: Outlines procedures for handling customer complaints and

disputes, ensuring fair and timely resolution.

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  Ethical and Legal Standards: Emphasizes the bank's commitment to ethical conduct,
anti-fraud measures, and adherence to legal and regulatory standards.

 Privacy and Confidentiality: Highlights the bank's commitment to protecting customer

privacy and maintaining the confidentiality of their financial information.

 Training and Development: Includes provisions for employee training and development
to ensure that staff is well-informed about the bank's policies and procedures.

A well-defined General Banking Policy is crucial for a bank's operations as it provides a

roadmap for consistent and compliant banking practices. It serves as a reference for employees to
understand their roles and responsibilities and ensures that customers receive reliable and
customer-centric banking services. Additionally, it helps the bank adapt to changing economic
conditions and regulatory requirements while maintaining the trust and confidence of its
customers.

3.8 General Banking Procedures

The general banking procedure in a bank involves a series of steps and activities that banks and
their customers undertake to manage financial transactions and services. Here is an overview of
the typical banking procedures:

 Account Opening: A customer visits the bank to open a new account. Provides necessary
identification documents (e.g. Voter ID, proof of address). Fill out an account application
form. Choose the type of account (e.g. Savings or fixed deposit).

 Account Verification and Approval: The bank verifies the customer's information and
checks for any potential risks or compliance issues. Once approved, the customer
receives an account number and other relevant information.

 Deposits: Customers can deposit money into their accounts in various ways, including
cash, checks, or electronic transfers. The bank may have specific procedures for handling
different types of deposits.

 Withdrawals: Customers can withdraw money from their accounts through various
means, such as ATM withdrawals, counter withdrawals, or electronic transfers.
Depending on the withdrawal method, the customer may need to provide appropriate
identification.

52
  Account Maintenance: Customers are responsible for keeping their account information
up to date; including contact details and beneficiary information. Banks may charge fees
for account maintenance or impose minimum balance requirements.

 Online and Mobile Banking: Many banks offer online and mobile banking services,
allowing customers to manage their accounts, pay bills, and perform transactions
electronically.

 Credit Services: Banks provide various credit services, such as loans, credit cards, and
overdraft facilities. Customers can apply for credit, and the bank assesses their
creditworthiness based on factors like income, credit history, and debt load.

 Investment and Wealth Management: Banks often offer investment services, including
brokerage accounts, mutual funds, and financial advisory services. Customers can invest
their funds and receive guidance on managing their investments.

 Customer Support: Banks provide customer support to address inquiries, resolve issues,
and assist with banking-related matters. This can include phone support, online chat, or
in-person assistance at bank branches.

 Security and Fraud Prevention: Banks implement security measures to protect

customer accounts and data from unauthorized access and fraud. Customers are educated
on best practices for securing their accounts.

 Statement and Transaction records: Banks provide regular account statements that
detail transactions and account balances. Customers can review their statements to ensure
accuracy and track their financial activities.

 Compliance and Regulatory Reporting: Banks must adhere to various regulatory

requirements, including reporting financial transactions to authorities for anti-money
laundering (AML) and Know Your Customer (KYC) purposes.

 Closing an Account: Customers can close their accounts by submitting a request to the
bank. The bank will settle any outstanding balances and provide a closing statement.

Banks may have variations in their procedures and services depending on their size, location, and
specialization. Additionally, the advent of technology has significantly changed how banking
procedures are carried out, with many transactions now happening electronically or through
mobile apps.

53
 CHAPTER - 04
ANALYSIS AND FINDINGS

54
4.1 Introduction
Performance evaluation is the process of assessing and measuring how well a bank is performing
in various aspects of its operations and financial activities. This evaluation helps stakeholders
make informed decisions, identify areas for improvement, and ensure the long-term viability and
stability of the bank in a dynamic and competitive financial industry as it provides insights into
the bank's overall health, efficiency, and effectiveness. It also plays a critical role in maintaining
public trust and confidence in the banking sector.

Table 4.2: Showing Current Deposit of Mutual Trust Bank PLC over the year
(2019-2022):
Year 2019 2020 2021 2022
Deposit (In million) 25.50 23.60 33.35 44.44
Growth Rate - -7.52% 41.31% 33.25%
Source: Branch data

Table 4.2: Current Deposit of MTB

Figure 4.2: Graphical representation of Current Deposit of MTB

Current Deposit

50

40

30
In million
44.44
20 33.35
25.5 23.6
10

0
2019 2020 2021 2022

Source: Table 4.2

Analysis : Both table and figure show current deposit of MTB. In 2019 current deposit was 25.5
ml. In 2020 deposit decreased and growth rate became negative due to pandemic situation in
covid19. In 2021 and 2022 both deposits increased. As customer is starting to operate their
business and opening more account so it is seen that the amount of current deposit has an
increasing trend.

55
 4.3: Showing Savings Deposit of Mutual Trust Bank PLC, over the year
(2019-2022):
Year 2019 2020 2021 2022
Deposit (In million) 279 270 293 294
Growth Rate - -3.22% 8.51% 0.34%
Source: Branch data

Table 4.3: Savings Deposit of MTB

Figure 4.3: Graphical representation of Savings Deposit of MTB

Savings Deposit

295
290
285
280
275 293 294 In million
270
279
265 270
260
255
2019 2020 2021 2022

Source: Table 4.3

Analysis: Both table and figure show savings deposit of MTB in the year 2019 was 279 million.
In 2020 savings deposit was 270 million which was decreased in trend and growth rate also
became negative. In 2021 it increased by 8.51% and it was continued to increase by 0.34% in
2022.From the above table and graph savings deposit trend is seemed to be increased. Most of
the people deposit their fund in savings account. Reason for increasing is high interest rate
offered on savings account, so when account increase deposit amount also increases.

4.4: Special Notice Deposit of Mutual Trust Bank PLC, over the year
(2019-2022):
Year 2019 2020 2021 2022
Deposit (In million) 30 27 19 26

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 Growth Rate - -0.1% -29% 36%
Source: Branch data

Table 4.4: Special Notice Deposit of MTB,

Figure 4.4: Graphical representation of Special Notice Deposit of MTB, ,.

Special Notice Deposit

30

25

20

15 30
27
10 In million
26
19
5

0
2019
2020
2021
2022

Source: Table 4.4

Analysis: Both table and figure show SND of MTB In 2019 its deposit was 30 million. And
2020 to 2021 deposit decreasing and growth rate also became negative -0.1%, -29%. In 2022
deposits was increasing from last year and growth rate also gradually increasing. Reason for
decreasing is interest rate fall in pandemic situation and economic instability. In 2022 as
economy become stable and interest rate rise make customer deposit their money.

4.5: Fixed Deposit of Mutual Trust Bank PLC, over the year (2019-
2022):
Year 2019 2020 2021 2022
Deposit (In million) 545 540 526 544
Growth Rate - -0.91% -2.59% 3.42%
Source: Branch data

Table 4.5: Fixed Deposit of MTB

57
Figure 4.5: Graphical representation of Fixed Deposit of MTB, ,.

Fixed Deposit

545
540
535
530 545
540 544
525 In million
520
526
515
2019
2020
2021
2022

Source: Table 4.5

Analysis : Both table and figure show that fixed deposit of MTB in the year of 2019 was 545
million. In 2020 to 2021 both deposit decreased and growth rate become negative which was -
0.91%,2.59%. Again in 2022 deposit and growth rate increased which was 544 and 3.42%.
Reason for increasing FDR are remittance and higher interest rate and decreasing for low interest
rate. Since the fund of fixed deposit can be utilized for long term investment, it should be made
consistent. So, such increase and drastic decrease can affect the profitability of the organization.

4.6: Deposit scheme of Mutual Trust Bank PLC, over the year (2019-
2022):
Year 2019 2020 2021 2022
Deposit (In million) 677 622 545 453
Growth Rate - -8.12% -12.37% -14.88%
Source: Branch data

Table 4.6: Deposit Schemes of MTB,

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Figure 4.6: Graphical representation of Deposit Schemes of MTB, ,

Deposit Schemes

700

600

500

400
677 In million
622
300 545
453
200

100

0
2019 2020 2021 2022

Source: Table 4.6

Analysis: Both Table and figure shows the deposit on schemes. In 2019 to 2022 deposit
continuously decreasing and growth rate became negative respectively. Reason for decreasing is
low interest rate and not offering lucrative scheme which will attract customer to do deposit. If
MTB continue to decrease in this deposit schemes, then this will affect the profitability of their
organization.

4.7 Findings of the study

After analyzing the data and information during the internship period in Mutual Trust Bank PLC,
following findings have been found and stated below:

 In MTB there are a lot of deposit scheme and Islamic Scheme but only some schemes are
used (Current deposit, Saving deposit, Fixed deposit, Monthly saving scheme, short
notice deposit) etc.
 Current deposit showed a positive growth trend from 2019 to 2022.The impact of the
Covid19 pandemic in 2020 resulted in a temporary decrease in current deposit.
 Saving deposit is also increasing trend over the four years. In 2020 saving deposit with
negative growth rate was influenced by the pandemic situation.
 SND experienced fluctuations with a decrease in 2020 and a substantial decline in 2021.
 Economic instability and falling interest rates were the primary reasons for the decline.

59
  Interest rate is important for customer but interest rate is lower than other banks so
deposit schemes are decreasing day by day in their branch. The continuous decrease in
deposit schemes poses a threat to the bank's profitability.
 Though the bank provides Mobile banking, SMS banking services but these services are
not up to the mark. Customer does not get transaction notification in time.
 Shortage of human resources specially to handle Account opening, so MTB can’t
provide better services to their customers.
 Now-a-days ATM booth is the security of our money. Due to lack of ATM booth
facilities the bank is not able to attract new deposit thus lending ability of the bank is
getting low.

4.8 SWOT Analysis of Mutual Trust Bank PLC

SWOT Analysis is the detailed study of an organization’s exposure to customers and potential in
perspective of its strength, weakness, opportunities and threats. This facilitates the organization
to make their existing line of performance and also forces to improve their performance in
future in comparison to their competitors. As through 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. I have prepared that SWOT analysis on the basis of
present condition of the bank.

 MTB has already established a favorable

reputation in the banking industry of the country. It
is one of the leading private sectors commercial
banks in Bangladesh. The bank has already shown a
tremendous growth in the profits and deposit sector.
Strengths  Mutual Trust Bank PLC has provided its
banking service with a top leadership and
management position.
 Mutual Trust Bank PLC has already
achieved a high growth rate. The number of deposits
and the loans and advances are also increasing
rapidly.
 Mutual Trust Bank PLC has the reputation
of being the
provider of good quality services to its customers.

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  The service quality is poor with regard to
Multinational Banks.
 Some of the job in Mutual Trust Bank PLC
has no growth or advancement path. So, lack of
Weakness motivation exists in persons filling those positions.
This is a weakness of the Bank that it is having
group of unsatisfied employees.
 Mutual Trust Bank has fewer ATM booths.
 Mutual Trust Bank has PLC SME Center.

 Regulatory environment favoring

private sector
development.
 SME business for that particular area.
 Credit card business.
Opportunities  A large number of private banks coming into
the market in the recent time. In this competitive
environment MTB must expand its product line to
enhance its sustainable competitive advantage. In
that product line, they can introduce the ATM to
compete with the local and the foreign bank. They
can introduce credit card and Debit card system for
their potential customer.

 Common attitude of Bangladeshi clients to

default.
 Number of potential competitors in those
areas increasing day by day.
 Competitors in those areas can capture
Threats market by
offering similar products.

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  Bangladesh bank sometimes forced some
rules and regulation which is not sustainable for
MTB.
 The low compensation package of the
employees from the mid-level to lower-level
position threats the employee motivation. As a
result, good quality employees leave the
organization and its effects the organization as a
whole.

So, these are all about the SWOT analysis of Mutual Trust bank. Here Strength and Weakness
are internal. And on the other hand, Opportunity and Threat are external.

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 Chapter – 5
Recommendations & Conclusion

5.1 Recommendation
Mutual Trust Bank PLC is one of the prominent banks in the country. It’s not easy to find out
solution to these problems within 3 months period. As per study finding some recommendations
maybe provide below:

Islamic banking is new for MTB, so bank should promote their Islamic product by
advertisement.
Continue to monitor and analyze current deposit trends and adapt strategies accordingly.
Capitalize on the increasing interest rates to attract more savings account holders.
Maintain competitive interest rates to keep SND attractive.

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 Revise and introduce new deposit schemes with better interest rates and benefits. Promote
deposit schemes aggressively to regain customer trust and participation.
Now a day's world is going very fast and most of the banks open online customer service
system. So, in order to compete in the world market, they should adopt online customer
service system.
Bank should recruit necessary skilled personnel to provide better services to customers
and arrange periodic training programs for existing employees, which will bring
effectiveness of the bank’s operation.
Bank should increase number of ATM booth to provide 24/7 services to the customer.
MTB can update their website to draw attention of people because people usually
don’t visit bank to know their financial condition. They do visit the bank website to know
details about the bank activities.

5.2 Conclusion
In conclusion it can be said that every organization has its positive as well as negatives. MTB is
todays one of the most renowned private banks in our country. It has already developed an image
of benevolence among its customers through its tremendous services. This success becomes
possible because of dedication, commitment and dynamic leadership of its management over the
period. Banks contribute to SME loan which is very much helpful for the economic development
of a country. Mutual Trust Bank PLC is a customer oriented financial institution. It remains
dedicated to meet up with the ever-growing expectations of the customer. General Banking
provides the foundation of banker-customer relationship. This is an era of keen competition
among Banks. It is the most important and preliminary work of a bank. The regular service given
to customers such as Depositing or drawing money, selling of instruments to them for remittance
purpose, collection of instruments, providing other ancillary services to keep customer section
busy. Personnel of this section should possess the required behavior for regular satisfaction of the
customers. The General Banking Department of MTB is also doing well in terms of collecting
deposits‟. In the short period of banking business, MTB has shown better performance in every
aspect it is not only doing business but also contributing to the society through its service. MTB
has already taken a significant position in the private sector banking. Within this short Internship
Period, it was not possible for me to learn everything of a banking system. But I tried my level
best to learn something within this short period.

Website
 https://www.MTBbd.com
 https://www.bb.org.bd
 https://www.educarnival.com

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 https://online.ibb.org.bd/Content/book/Laws and practice of general banking

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