Internship Report On Credit Management of Mutual Trust Bank Ltd.

Internship Report

On

Credit Management of Mutual Trust Bank Ltd.

 

Supervisor:

Md. Idris Ali

Assistant Professor

Department of Business Administration.

Prepared by:

Sifat Binte Amin

ID No. BBARF 07081003

Batch: 7^th

Major: Finance

Semester: Fall-2011

Department of Business Administration

Bangladesh Islami University

Date of Submission: January 12, 2012

Official Certification

This is to certify that the internship report on “Credit Management of Mutual Trust Bank Ltd”. In the bona fide record at the report is done by Sifat Binte Amin, ID. BBARF 07081003 as a partial fulfillment of the requirement of BBA degree from the Department of Business Administration, Bangladesh Islami University.

The report has been prepared under my guideline and is a records of the bona fide work carried out successfully.

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Supervisor

Md. Idris Ali                                                   Chairman, Internship Committee

Assistant Professor                            

Department of Business Administration       

Bangladesh Islami University.

           

                       

Student’s Declaration

I do hereby declare that the work presented in this internship report titled “Credit Management Of Mutual Trust Bank Ltd” is an original work done by me under the guideline of Md. Idris Ali, Assistant Professor, Department of Business administration, Bangladesh Islami University.

No part of this report has been previously submitted to any other University/ College/ Institution/ Organization for any academic certificate /degree/diploma certification.

The work I have presented does not breach any existing copyright and no portion of this report is copied from any work done by anyone.

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Sifat Binte Amin

ID. BBARF 07081003

BBA 7^th Batch

Department Of Business Administration

Bangladesh Islami University.

 Acknowledgment

First of all I express my deep gratefulness to the almighty “Allah” for giving me the every assistance in the way of life.

As a part of complete educational program internship program is a complement of the formal education as it provides practical knowledge to the out going students of BBA. Here we get the chance to experience the real corporate working scenario as we have learned from our BBA program.

My special gratitude goes to my honorable internship supervisor Md. Idris Ali, Assistant Professor, Department of Business Administration, Bangladesh Islami University. He motivated me to choose this topic and helped me in every step of my internship & report writing by giving proper guidance, advice, & inspiration.

I am highly grateful to the employees of Shanir Akhra Branch, Mutual Trust Bank Limited- Md. Habib Ullah Chowdhury (FAVP) Branch Manager, Md. Mohibur Rahman (FAVP) Deputy Manager, Md Alamgir Hossain (J.O) Credit In charge, & others for their excellent guidance in establishing this report. Their instruction and encouraging attitude and artistic technique of giving knowledge helped me in an outstanding way to work out this difficult task. I have faced various kinds of problems from beginning to end. I wouldn’t solve all those problems without the help of their most cordial instruction, intellect advice and sympathy. They gave me valuable suggestion, note of how to prepare the report, its rules, methods, analyzing system and all the relevant information I needed to complete the report.

I prepared the report on the basis of knowledge, ideas and understanding of the Internship Program. I tried to make it precise and analytical as well as informative

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Sifat Binte Amin

ID. BBARF 07081003

BBA 7^th Batch

Department Of Business Administration

Bangladesh Islami University.

MTBL-1

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