Internship Project

BUS - 498

Credit operations and performance evaluation of Mutual Trust Bank Limited

Prepared for-

Aditi Mansur Mahmud (Amd) Senior Lecturer, School of Business, North South University.
Prepared by Nuzhat Sharmin ID # 082 027 030 North South University.

Date of Submission: August 10, 2012

Letter of Transmittal

August 10, 2012

Aditi Mansur Mahmud (Amd) Senior Lecturer, School of Business, North South University. Bashundhara, Baridhara, Dhaka-1229

Dear Mam, Enclosed is the final copy of my Internship Report titled Credit operations and performance evaluation of Mutual Trust Bank Limited as a requirement for BBA program. The report contains the most relevant information as promised in my proposal. While conducting the report, I have gathered lots of knowledge about banking operations of commercial bank, retail credit and many unknown facts, problems and prospects of retail or consumer lending on second generation banks. I therefore, am placing this report to you for your kind consideration.

Sincerely,

----------------------------------------------Nuzhat Sharmin[082 027 030] Internee, Summer- 2012, North South University

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Acknowledgement
First of all, I would like to express my gratitude to Almighty Allah for giving me the strength to complete my internship report in a very comfortable manner. I would also like to express my gratitude to Head office of MTBL for providing me the opportunity to do my internship work and helping me in learning how they work and providing with all the necessary information I needed to finish the report. I would also like to express my gratitude to my respected course supervisor Aditi Mansur Mahmud (Amd) Senior Lecturer, School of Business who helped me in every possible way to complete the report in a proper manner. With his help it would not be possible to accomplish the research. I would also like to take this opportunity to express my gratitude to the officers of MTBL Head office specially the officers of Credit Risk Management department for their help and support.

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Table of content
Executive Summery Page No. Iv

Organization Part
History of Banking History of Private Banks in Bangladesh Current Structure of Banks in Bangladesh Sector wise Market Composition Industrial Analysis Credit policy About Mutual Trust Bank Ltd Products & services offered by MTBL Organogram of MTBL Details of some major loans and advances provided by MTBL Financial performance of MTBL 1 5 8 11 13 19 23 27 31 33 57 65 66 67 67 67 67 67 71 77 77 78 88 92 93 95 96 97 98 99 100

Project Part
Introduction Objective Significance of the study Hypothesis Methodology Scope of study Limitation of the study Loan disbursement Data Analysis and Interpretation Reliability Test Pie Chart and Frequencies Statistics Cross Tabulation and Chi Square Test Regression Analysis One Sample t test Key Findings of the Study Recommendations Limitations of the Study Conclusion Reference Appendix

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Executive Summary
This report is based on the credit operations and performance evaluation of Mutual Trust Bank Limited. Internship program is the pre-requisite for the graduation in BBA. Classroom discussion alone cannot make a student perfect in handling the real business situation; therefore, it is an opportunity for the students to know about the real life situation through this program. A report has to be built for the university and organization requirement. The topic of the report is Credit operations and performance evaluation of Mutual Trust Bank Limited.

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The main purpose of the report becomes very clear from the topic of the report. The report discusses about the different credit facilities, approval process, monitoring and performance. This report is broadly categorized in two different parts. At First there is prefatory where I describe the banking sector and Bangladeshs economy. The main objectives of the report are identifying the credit approval and monitoring and their overall performance in the last few years as well as finding out the level of satisfaction among the clients who are taking credit facilities from MTBL. Part one narrates the company profile including MTBL history, their vision, mission and strategy, products and services, activities and performances. It also includes services of banking sector, different loan categories, and credit analysis, loan review and handling default loans. It also describes in details about the procedure of sanctioning credit, loan documentation, and execution, stamping witness and other legal formalities. It also describes the issuance of different bank guarantees. Part two, the project part describes findings and analysis of the information that are being collected from MTBL. It includes Pie charts and Frequency statistics, Regression model, One sample t test, Cross Tabulation model, Chi Square test etc. It also includes the summery of findings. Findings of the report say about the prior and neglected sectors of the credit facilities. There are some recommendations given in the end based on the findings I believe which will be able to help MTBL to improve their image among the clients.

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