A WORKING REPORT ON MUTUAL TRUST BANK RETAIL

LOAN PRODUCT
By
MalihaNawrin
ID # 0730095
An Internship Report Presented in Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Business Administration
INDEPENDENT UNIVERSITY, BANGLADESH
December, 2011
I.

A WORKING REPORT ON MUTUAL TRUST BANK RETAIL
LOAN PRODUCT
By
MalihaNawrin
ID # 0730095
Has been approved
December, 2011
Mr. SaquibShahriar
Lecturer,Finance and Accounting
School of Business
Independent University, Bangladesh
II
Letter of Transmittal
December, 2011
Mr. SaquibShahriar
Lecturer, Finance and Accounting
School of Business
Independent University, Bangladesh
Subject: Submission of the internship working report.
Dear Sir,
With due respect, I would like to inform you that it is a great pleasure for me to submit the report on
A Working Report On Mutual Trust Bank Retail Loan Product .As a mandatory requirement for
BBA 499 (Internship) program. I have tried my best to prepare a good report with providing all of
my effort and to cover all aspects regarding the matter. I think that the report contains the
information that you need to get an idea about retail loan product of mutual trust bank Ltd.
Despite various constraints, I finished this working report at my best effort given where I was. It
would be a great honor for me if you would add your opinions and suggestions for the future.
Thank you once again for supervising me during this difficult transitional time of my career.
Sincerely Yours
...
MalihaNawrin
ID# 0730095
III
Acknowledgement
At first, I should thank Almighty Allah for enabling me to complete my internship report in time. I
got appointed to work as an intern at Gazipur branch of Mutual Trust Bank Limited. I worked
gathering experience of working in an office environment. I have tried my best to present both hands
on experience and study in this paper. I would like to express my gratefulness and thanks to my
respected academic supervisor Mr.SaquibShahriar, Faculty member of Independent University,
Bangladesh (IUB) for giving me the useful instructions on how to work on real life activity. His
dynamic guidance at all stages of work encouraged me to accomplish my work successfully. I would
like to thank School of Business, IUB for giving me overall support and co-operation. I am also
thankful to Head of HR Division of Mutual Trust Bank Ltd, Head of Branch (Gazipur branch) for
allowing me to work in Gazipur branch. I am grateful to the employees of Mutual Trust Bank Ltd.s
Gazipur branch for their cooperation.
They have been very helpful in showing me the work process and provided relevant information for
my report whenever I approached. Although being in extreme business of workloads in office they
tried to provide me with necessary information when I asked questions.
It was a great opportunity to do internship in such an organization like Mutual Trust Bank Limited. I
always felt that I was under guidance of highly qualified and experienced personnel. The experiences
I have gathered will be very beneficial in my career.
Objectives of the Study : The main objectives of this internship report are,
To give a brief idea about retail loan product of Mutual Trust Bank Ltd.
To explain my duties and responsibilities in Mutual Trust Bank Ltd.
To have a practical relation & reliability of the topics we have achieved from textual background in our
educational life.
Methodology:
Primary Sources: Primary data sources are informal discussion with professionals and observation
while working in different tasks in MTBs Gazipur Branch
.Secondary Sources: The secondary data sources are website, different published reports, and different
publications, office circular, and product program guide of Mutual Trust Bank Ltd.
Limitations :
Some limitations were faced while conducting this study. The limitations were:-
The employees in Mutual Trust Bank Ltd, Gazipur branch are so much busy in their responsible fields;
they could hardly provide little time to discuss with them.
Another limitation of this report is Banks policy of not disclosing some data and information for
obvious reason, which could be very much useful.
IV



Executive Summary
Mutual Trust Bank is started its journey with a global mission to reach MTBs mission and vision at
September 29, 1999 under the company act 1994 as a public limited. MTB believe that success
depend on the ability to consistently satisfy the every changing choice of customer.
I have worked on the Gazipur branch of Mutual Trust Bank Ltd and my responsibility was at the
General banking section.
The main objectives of this study are to give a brief idea about MTBs retail loan product and explain
my duties and responsibilities in Mutual Trust Bank over these three months.
For collection of data for this report I have used both primary and secondary sources. I had
Collected data from personal observation and informal discussion with the employees of Mutual
Trust Bank Gazipur branch and my other sources are relevant books, newspapers etc. MTB annual
report, 2010, MTB Biz (a monthly business review), Published documents, office circular.
In this report chapter one is about introduction of Mutual Trust Bank Ltd and the mission vision of
Mutual Trust Bank Ltd. Chapter two is talked about the Mutual Trust Bank s retail banking ,types of
retail loan products and briefly discuss about the Mutual Trust Banks personal loan . Third chapter is
about the auto loan of Mutual trust Bank Ltd. chapter four provides information about the home loan
of Mutual Trust Bank. Working experience is in the chapter five chapters five also contain my
positive and negative findings of Mutual Trust Bank Ltd. Last chapter that means chapter six last
chapter is conclusion and recommendation part.
V



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



Chapter 516
5.0 Working Experience16
5.1 Introduction.16
5.2 General Banking Divisions..16
5.3 Cash Section.17
5.4 Findings17
Chapter6..19
6.0 Conclusion & Recommendations..19
6.1Conclusion.19
6.2 Recommendations19



Chapter 1
1.0MTB at A Glance: The company was incorporated on September 29,1999under the
companies Act 1994as a public company limited by shares for carrying out all kinds of banking
activities with Authorized capital of tk.3800,000,000 divided into 38,000,000 ordinary shares of tk.
100 each.
The company was also issued certificate for commencement of business on the same day and was
granted license on October 05, 1999 by Bangladesh Bank under the banking companies Act 1991 and
started its banking operation on October 24, 1999.as envisaged in the memorandum of association
and ass licensed by Bangladesh bank under the provision of the banking company act 1991, the
company started its banking operation and entitled to carry out the following types of banking
business.All types of commercial banking activities including Money Market operations.
Investment in Merchant Banking activities.
Investment in Company activities.
Financiers, Promoters, Capitalists etc.
Financial Intermediary Services.
Any related Financial Services.
The Company (Bank) operates through its Head Office at Dhaka and 71 branches. Mutual Trust
Bank has 50 ATM booths throughout the country The Company/Bank carries out international
business through a Global Network of Foreign Correspondent Banks.
1.1Mission of MTB: We aspire to be the most admired financial institution in the country,
recognized as a dynamic, innovative and client focused company that offers an array of products and
services in the search for excellence and to create an impressive economic value.
1.2Vision of MTB: Mutual Trust Banks vision is based on the philosophy well known as
MTB3v.We envisions MTB to be:
one of the best performing banks in the country
the bank of choice and
a truly world class bank
1.3 Gazipur Branch of Mutual Trust Bank Ltd: Gazipur branch has started its
operation in Gazipur at 14
th
November 2010.so its a one year aged new branch of Mutual Trust Bank
.currently its deposit amount is around 10 core and the advance and loan amount is 19 million. There
are only six officers in the branch with manager. There are three section of the bank those are general
banking section, credit section and cash section.
Page 1



1.4 Organization chart of MTB
-
Page 2



Chapter 2
2.0Retail banking of MTB:Mutual Trust Bank ltd.is one of the largest private retail banks in
the country and serves the needs of individual clients through its extensive branch network across the
country.it offers an array of deposit and loan products to cater to the financial needs of its large
customer base .during the period under review, the bank saw its retail loans grew 32 percent, from
2.26 to 2.99 billion.
2.1 Types of retail loan product of MTB:There are three types of retail loan product of
MTB those are: MTB Personal Loan, MTB Auto Loan and MTB Home Lone.
2.2 MTB Personal Loan: is any purpose unsecured and terminating loan facility (EMI based)
for any legitimate purpose. Bank would finance against gross monthly income of the any credit
worthy individual. To meet life style needs of the credit worthy individuals and to capitalize the vast
market gap, this is a suitable unsecured retail loan product.
2.3 Product Features:
Purpose:MTB Personal Loan is any purpose personal loan. Purpose might be
Considered as follows:
Purchase of miscellaneous household appliances
Purchase of audio-video equipment
Purchase of furniture
House renovation
Purchase of Personal Computers
Interior Decoration
Marriages in the family Advance rental payments
Hospitalization or other emergency medical needs
Trips abroad
Education expenses
Training expenses
Loan takeover or balance transfer
Other legitimate purpose
Purposes not allowed: This loan cannot be taken for solely business purposes like working
capital and industrial machinery purchase. But self-employed professionals, who have private
practices can avail this loan to buy their office equipment, machines, and accessories or premise
renovation
Target Customers :Any credit worthy individuals like:
Salaried executives
Professionals like Doctors, architects, Engineers, Chartered Accountant, Consultant and IT
professionals
Businessperson
Loan Lord or Lady
Non target customers
Journalist of reasonably lower level & non reputed publications
Lawyers



Page 3
Employees of un reputed Proprietorship Firms & Partnership Firms
Officials of law enforcing agencies
Politicians & Individuals having politically affinity
Travel agents and C & F agents of lower level
Defense officials below Major level
Police Officials below ASP level
MTB Negative listed individuals
Loan amount:
Salaried Executive, Self Employed Professionals & Landlord/lady Minimum TK. 50,000/-. Maximum
TK.10,00,000/-
Businessman Minimum TK. 50,000/-.Maximum TK. 500,000/- or 8 times of gross monthly income,
whichever is lower.
Interest rate and processing fee:Interest Rate is 17%. For salaried executive,
18%. For Businessman, Professional & Loan lord/lady and for the 14.00%: for employee of MTB
and Processing Fee 1.50 % of the loan amount
2.4 Borrower Eligibility:
Age: Any Bangladeshi residentMinimum 21and Maximum 60 years or retirement date whichever is
lower at the end of loan maturity date.
Present AddressBorrower must reside for at least 6 month in the present address.
Minimum Income:
2.5 Identification and Income Documents:
National identity or Passport or driver license or Employee Id or Nationality or Ward Commissioners
Certificate with photo attachment
Photograph and business card
Bank Statement for last 6 months
Copy of TIN related document.
Trade license/MOA for businessmen
Copy of house ownership and rent agreement for landlord and land lady
2.6 Co Applicant:Parents, Siblings and spouse are allowed as joint borrower. Joint borrower is
allowed to meet the minimum income criteria jointly. However, in such cases, at least one of the
borrower has to meet the minimum income of BDT 10,000/.
Page 4

Category Requirement Amount
Salaried Executives Minimum BDT 15,000/- per month
Self Employed Professionals like
doctors, engineers and architect
Minimum BDT 30,000/- per month
Business person ,landlord and other
income individuals
Minimum BDT 40,000/- per month