Executive Summary
For the development of the financial condition of a country as well as the whole world the financial institutions have the greatest contribution to this. Especially the contribution of Banks in this purpose is noticeable as is main activity is based on financing. It also plays a vital role in the financial system by mobilizing the economy of any country. Banking business mainly maintains flow of funds from depositors to investors. Besides, banks provide assistance in international trade, money transfer, collection and payment of utility and other bills, etc.
From the experience of my three month internship program I prepared this report based on the credit management followed by The Mutual Trust Bank Limited (MTBL). This report is the conglomeration of a comprehensive and practical exposure to the field of Credit Management followed by Mutual Trust Bank Limited.
My internship report encompasses on five chapters.
Chapter One covers the introductory part of the study. In this part I basically tried to explain objective, scope, limitation and Methodology of the study.
Chapter Two covers the profile of the company. In this part I tried to discuss the Background of Mutual Trust Bank Ltd.
Chapter Three covers the Literature Review of the Report. Here I analyzed the credit related various types of view & ideas from different philosophers and sources which helps also showed some statistical analysis based on credit of MTBL.
Chapter four covers the Findings and Analysis where I tried to present the main discuss of the report of the Mutual Trust Bank Limited.
Chapter five covers the Recommendation, and Conclusion. In this chapter I tried to provide some suggestion to the Bank. These suggestions are the out comes of this report. These suggestions made on the basis of my observation. I think it will help the managing committee of MTBL to run the organization more effectively
Acronyms
| |
| ATM = Automated Teller Machine |
| CA = Current Accounts |
| CC = Cash Credit |
| CRG = Credit Risk Grading |
| CRM = Customer Relation Manager |
| DD = Demad Draft |
| DD = Demand Drafts |
| DPN = Demand Promissory Note* |
| ERR = Economic Rate of Return |
| FBP = Foreign Bill Purchase |
| FDR = Fixed Deposit Rate |
| FIS = Financial Intermediary Services |
| GB = General Banking |
| IBP = Inland Bill Purchase |
| MTBL = Mutual Trust Bank Limited |
| NRB = Non- Resident Bangladeshi |
| PO = Payment Order |
| SLR = Statutory Liquidity Ratio |
| SM = Special Mention |
| SME = Small Management Enterprise |
| SOD = Secured Over Draft |
| SS = Sub Standard |
| STD = Short Term Deposit |
TABLE OF CONTENTS
| SL. NO | PARTICULARS | Page |
| | Acknowledgment | |
| | Executive Summary | i |
| | Acronyms | ii |
| | Table of contents | iii |
| | List of the charts & graphs | iv |
Chapter One: Introduction
| 1.1 | Introduction | |
| 1.2 | Objectives of the Study | |
| 1.3 | Methodology | |
| 1.4 | Scope of the study | |
| 1.5 | Limitations of the study | |
| 1.6 | Time Schedule | |
Chapter Two: Profile of the organization
| 2.1 | Origin of Banking Industry | |
| 2.2 | Present Status of Banking Industry in Bangladesh | |
| 2.3 | Bank Profile | |
| 2.4 | Objective of the bank | |
| 2.5 | Mission and vision Profile of the bank | |
| 2.6 | Branches of the bank | |
| 2.7 | Products.& Services | |
| 2.8 | Performance At A Glance | |
| 2.9 | An Overview of Shanirakhra Branch | |
Chapter Three: Literature Review
| | Literature Review | |
Chapter Four: Analysis and Findings
| 4.1 | Concept of Credit & Description of Credit Products Of MTB | |
| 4.2 | Consumer loan products | |
| 4.3 | Corporate Loans | |
| 4.4 | SME Banking 3 MTB Interest Rates on Lending | |
| 4.5 | Credit Principles & Credit Evaluation Principles | |
| 4.6 | Credit Appraisals | |
| 4.7 | Policy Guidelines for CRM by Bangladesh Bank | |
| 4.8 | Risk Rating Grading Definition | |
| 4.9 | Credit Sanction Procedures | |
| 4.10 | Credit Processing Steps Of MTB | |
| 4.11 | Requirements For Loan Documentation | |
| 4.12 | Characteristics Of Good Collateral | |
| 4.13 | Different kinds of Collateral | |
| 4.14 | Credit Monitoring & Review Process | |
| 4.15 | Importance Of The Verification Of 5 C’s | |
| 4.16 | Criteria For Loan Classification &Provision Maintenance By MTB | |
| 4.17 | The Scenario of Provision for Loans & advances Of MTB | |
| 4.18 | CRG Manual | |
| 4.19 | Scenario Of Last 5 years | |
| 4.20 | Statistical Analysis | |
| 4.22 | Trend Chain Analysis | |
| 4.23 | Regression Analysis | |
Chapter Five: Conclusions and Recommendations
| 5.1 | Conclusion | |
| 5.2 | Recommendations | |
Bibliography
Appendix
List of the Charts & Graphs:
| Serial no | Name of Graphs | Page no |
| Fig . 01 | Branh Credit Condition | |
| Fig. 02 | Different kinds of Collateral | |
| Fig. 03 | Provision for loans & advances in 2009 & 2010 | |
| Fig. 04 | Growth of credit | |
| Fig. 05 | Growth of profit | |
| Fig. 06 | Scenario of classified loans | |
| Fig. 07 | Tyrend Chain of credit | |
| Fig. 08 | Tyrend Chain of interest income | |
| Fig. 09 | Tyrend Chain of classified loans | |
| Fig. 10 | Regression Analysis | |
