Job Experience in General Banking at Mutual Trust Bank
Overview of Mutual Trust Bank
Mutual Trust Bank Limited (MTBL) is one of the leading private sector commercial banks that started its banking operation in Dhaka on 24th October 1999. It has focused on the established and emerging markets of Bangladesh. Concentrating hard on the activities of its area of specialization, MTBL has been able to achieve excellent market standard with competent customer service. The bank makes pure effort to accomplish its share in community responsibilities. By means of such measures the bank intends to grow and increase shareholders’ value. Mutual Trust Bank pledges to maximize customer satisfaction through services and build a trusting relationship with customers, which has stood in the test of time for the last 14 years.
The corporate head office is in Gulshan 1 Dhaka. The Bank has 86 branches, 14 SME Branches, 107 ATMs Booth all over Bangladesh. The bank has no overseas branch as on December 2011. It has one booth which is located at Hazrat Shahjalal International Airport, Dhaka from where the customer can exchange their money. The bank carries out international business through a Global Network of Foreign Correspondent Banks. . The total number of employees of the bank is 1200. The management of the bank is vested in 13-member board of directors. The managing director is its chief executive.
The bank conducts all types of commercial banking activities including foreign exchange business and other financial services. During the first two years of operations, the bank’s main focus was on the delivery of personalized customer services and expansion of its clientele base.
Mutual Trust Bank Limited is a scheduled bank in the private sector established under the field of Company Act, 1994. It was incorporated as a public limited company on September 29, 1999 under Companies Act 1994 as a public company limited by shares for carrying out all kinds of banking activities with Authorized Capital of Tk. 38,00,000,000 divided into 38,000,000 ordinary shares of Tk.100 each. The shares of the bank are listed with the Dhaka and Chittagong Stock Exchange, as a publicly quoted company for its shares. Authorized Capital of the Bank is BDT 10 Billion.
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 as licensed by Bangladesh Bank under the provisions of the Banking Companies 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
III. Investment in Company activities
- Financiers, Promoters, Capitalists etc
- Financial Intermediary Services
- Any related Financial Services.
The Bank started its commercial banking operations from 24th October 1999. During this short period of time this organization has managed to successfully prove itself as a progressive and dynamic financial institution of the country.
Mutual Trust Bank’s vision is based on a philosophy known as MTB3V. The vision is-
- One of the best performing banks in bangladesh
- The bank of choice
- A truly world class bank
The mission of Mutual Trust Bank is-
“We aspire to be the most admired financial institution in the country, recognized as a dynamic, innovative and client focused company, which offers an array of products and services in the search for excellence and to create an impressive economic value”.
Objectives of the Bank
The main object of the Mutual Trust Bank Limited (MTBL) had been to offer an interest free banking system in the financial market. Apart from that, the bank started its operation in the country with a view to realizing the following objectives:
- To establish a partnership relationship with customers and to eliminate the idea of the debtor-creditor relationship of traditional banks
- To establish welfare oriented banking system
- To mobilize savings towards productive sectors
- To invest on profit and risk sharing basis
- To accept deposits on profit and loss sharing basis
- To create employment opportunities by investing savings towards prospective economic sectors
- To extend banking services towards the poor, helpless and low-income group of people in the society in order to uplift of their standard of living
- To contribute to establishment of a society by equitable distribution of wealth
- To establish justice in trade and commerce in the country
- To render services for the economic development of the nation.
With the mission to become a dependable client focused financial institution in the country by proving service with trust and integrity, Mutual trust Bank is committed to follow its business principles. The bank is trying to provide outstanding customer service to its customer. The bank is aware of doing all its operations in effective and efficient way. Now the liquidity ratio for all banks is 8.8%. So Mutual Trust Bank is trying hard and fast to maintain the liquidity ratio.
Product Service Offering
Mutual Trust Bank has designed various types of deposit products, loans, MTB card for its customer under retail banking.
Mutual Trust Bank has designed many types of deposit product to satisfy the different needs of its customer. It tries to give best value of money for the customer. Different deposits of MTBL are given below
(a) Regular Savings Account
This is the regular savings account of MTBL. This account is providing online banking service, fund transfer from one branch to another branch, cheque- book facility to its customers.
(b) Current Account
This is the regular current account of MTBL. In Panthapath branch most of the current accounts are on the name of companies. Generally there is no interest for current account but MTBL is offering SND (Short Noticed Deposit) account, current account with interest, for its customers.
(c) Fixed Deposit
The customers who want to invest for a long time MTBL is offering fixed deposit with interest rate of 12% for them. The customer can use fixed deposit as collateral to get overdraft facilities.
(d) Brick by Brick
Brick by Brick is a unique monthly savings plan which builds up over the years and provides a lump sum amount at maturity. No initial deposit is required. The monthly installment of this plan is BDT 250, 500, 1000, 2000, and 5000. The savings duration is 3, 5, 8 and 10 years. Brick by Brick is very popular deposit in Mutual Trust Bank. The customer has to open account from the date of 1st to 20th of following month.
(e) MTB Inspire
MTB Inspire provides a range of enhanced services, while letting the customer enjoy unique benefits of getting return on customer’s deposit monthly instead of traditional half yearly. Interest is calculated on daily basis and paid monthly.
(f) MTB Ruby
MTB Ruby enables today’s independent women to enjoy hassle-free banking services. Besides the core MTB banking advantage, MTB Ruby, an exclusive savings account for women, is packed with special benefits for the women customers. Here interests are add on daily basis and it will be credited monthly.
(g) MTB Millionaire Plan
Millionaire Plan is a monthly savings plan, which is designed to make the customer a millionaire in a few years. One can take 80% loan after one year on this account. At BDT 9,400 monthly installment for 6 years make payable amount of BDT 1,000,000.
(h) MTB Kotipati
MTBL offers a product named “MTB Kotipati” to turn you into a Kotipati after a certain span of time depending on the customer’s capacity to deposit monthly. The bank provides attractive return on deposit. The customer may avail loan up to 90% of the deposited amount.
(i) MTB Junior
MTB junior account is for the children. The bank helps the customer to show a secure way to save money for their children. The account holder has to be below 18 years.
(j) MTB Graduate
This account is for the graduate and college students who are above 18 years. Starting college or university can be both exciting and challenging. That’s why MTB Graduate, a contemporary savings account, is packed with everything students need to meet all banking needs, offering monthly income while helping the student save for future financial emergencies.
Mutual Trust Bank also offer loan to its customers. It has various types of loan products to satisfy the different needs of its customer.
(a) MTB Personal Loan
Mutual Trust Bank offer simple, convenient and quick loan facilities to fulfill its customers’ needs. Loan amounts from Tk. 50,000 to Tk. 10, 00,000. Flexible repayment option of 12 – 60 months.
(b) MTB Auto Loan
Mutual Trust Bank offer lucrative interest rate for the car loans. The loan is available for new and reconditioned cars. The interest rate is 17%. Loan amount is BDT 3, 00,000 to 20, 00,000.
(c) MTB Home Loan
Planning to own a home is one of life’s most rewarding challenges. Whether it is purchasing a new house or a new apartment, MTB has a wide range of home loan options that can be customized. Loan amount to be BDT 5, 00,000 to 1, 00, 00,000. The interest rate is 14.5%.
(d) MTB Home Equity Loan
Mutual trust bank offers loan for house construction, extension, renovation, finishing work which is known as MTB Home Equity Loan.. Loan amount up to 70% of the property value.
Mutual Trust Bank offers debit and credit card for its customer.
(a) Debit Card
MTB VISA credit card can be used as ATM card at any VISA ATM across the world. MTB Visa Debit card is extremely versatile and simple to use. Customer just has to Swipe & Sign to make a purchase.
(b) Credit Card
MTB credit card has worldwide acceptance. As we know in credit card customer doest has to pay the full amount of bill. MTB credit card holders have to pay only 5% of the total bill amount.
Wholesale banking is a kind of service by bank for the large corporate clients, mid size companies, real estate developers etc. Mutual Trust Bank has following products.
Term finance is that Mutual Trust Bank offer loans for project finance, lease finance, house building finance. These are the large amount of loans for the corporate clients.
Working Capital Finance
Working capital finance is a product which the bank offers to the customer to run the capital in their business. It offers some benefits like cash against documents (CAD), secured over draft (SOD) etc.
This product help in export import business. Mutual trust bank offer export import financing facilities depending on their requirements.
MTB Offshore Banking
Offshore bank is a bank located outside the country of residence of the depositors. This service is designed for 100% foreign owed company, joined venture and locally owned company in EPZ.
Mutual Trust Bank offers an array of deposit products in local currency for the NRBs who are residing abroad and want to save their hard-earned money to utilize in future and facilitate their family maintenance.
SME banking is a service provide to the small business enterprise. The bank designed a number of products for the entrepreneurs.
MTB Small Business Loan
It is designed foe small trader to expand their business. The loan amount is up to 50, 00,000
Customer can get a double amount of loan on their fixed deposit. The range of loan is 5, 00,000 – 20, 00,000.
This is the loan designed for the women entrepreneur. The range of loan is from 1, 00,000 to 50, 00,000TK. The interest rate is 10%.
It is designed for the agricultural sector. Only farmers can apply for it. The loan amount is up to three crore.
The Organizational Hierarchy of Mutual Trust Bank
At Mutual Trust Bank there is one Managing Director (MD) who mainly controls and supervises the major divisions of this bank. He directly supervises the overall activities and Divisions. One Senior Executive Vice Presidents (SEVP) and Three Executive Vice President (EVP) and two senior Vice President reports to the Managing Director. Executive Vice Presidents control the credit, loan administration, international, information technology, the financial control & accounts division, treasury division, credit division, card division. Senior Vice President controls the human resource and marketing divisions. The Vice Presidents work under the Senior Executive Vice President. And Executive Vice President Directly report to the senior Executive Vice President (SEVP). The daily activities directly control by senior Executive Vice President (SEVP).
Job Responsibilities in General Banking
(a) Receive Documents from different organization
Normally bank receives numerous documents from many institutions such as insurance company, organizations, government office and other banks. As I worked at front desk I collected all the documents. Two registers were kept for those documents. The documents of foreign exchange were registered in foreign exchange dispatch. The other documents were kept in dispatch registered.
KYC means Know Your Customer. This is a form which is attached with all the account opening form of this bank. I have to fill up KYC form by writing all the information of customer. Two forms are attached with customers account opening form. One is KYC form another one is SBS form. In KYC form name of account holder, account number, passport number, national ID number, source of fund, monthly number of transaction, and total amount of monthly transaction should be filled up. In SBS form the profession of customer, types of account are written with code. For example the code for service holder customer is 911000.
(c) Record the number of pay-order issued every day
Every day a good number of pay orders are issued in mutual trust bank. Pay- order is a kind of transaction tool of a bank that is safer than a cheque. A check can be bounce if there is no money in the payer’s account but when a payer issue a pay -order to the payee than he must credit his account with the amount of money that is mentioned in the pay-order. Then Mutual Trust Bank Limited debited the payer’s account and credited the payee’s account.
These transactions need to be recorded in a particular register copy. Usually the transactions are recorded in the register book at the same time when pay order is issued.
In this bank it was my duty to record everyday’s number of pay-orders issued. In the register copy, I used to write the payer’s name, payee’s name, amount of the pay-order serially by seeing the pay-order block of the bank.
(d) keeping record of cheque book requisition
Cheque book is an important instrument for bank and its customers. Throughout my internship I receive requisition from client and deliver cheque book to the client. In Mutual Trust Bank, when cheque books came from the head office my duty was to seal all the cheque books to make it authorized.
Then I have to register the account name of all the cheque books in three files. One copy is attached with cheque book register copy, another one in secure registration file, other is in customer file. These things are done for the security purpose of cheque books.
(e) Learn to open an account
Besides all the jobs mentioned above I have also learnt how to open an account. In Mutual Trust Bank Limited the responsibility of opening an account is on Shahnaz Begum, Senior Officer of Mutual Trust Bank Limited. She gave me whole idea about the procedure of opening an account, how to deal with customers or how to help them for account opening.
From her I got to know that there are two types of account for customers. They are- personal account and non-personal account. The non personal account is popularly known as company account in Mutual Trust Bank. For opening personal savings account needed- two copies of passport size photograph of the account holders duly attested by the introducer, one copy passport size photograph of nominee duly attested by A/C holder, photocopy of birth certificate/ passport/ voter id card no of both A/C holder and nominee, income source copy of A/C holder, A/C introduced by a account holder.
On the other hand, for opening non personal/corporate account for different types of firm like proprietorship firm, partnership firm, limited company club/ society/ school/ college, trust etc papers/documents are required are: two copies of passport size photograph of the account holder(s) who will operate the A/C duly attested by the introducer, A/C introduces by current account holder, certified copy of valid trade license, trade seal, TIN certificate, Trade seal, one copy passport size photograph of nominee duly attested by A/C holder etc.
Specific Job Responsibilities in Foreign Exchange Department
My internship was in foreign exchange department of Mutual Trust bank. So, all the work of foreign exchange department was my specific job responsibilities.
(a) Issuing EXP
Issuing EXP is actually keeping register of export form. For every export, the exporter needs to
fill up export form. The bank keeps register of export form year to year. Following columns are written in an export register.
- Serial number of export form
A number is given for every export form by the bank. Such as 2218178613 here 22181 is the bank code, 13 is the current year 2013 and 786 the number of export form.
- Name of exporter
It might be the individual’s name or company’s name.
The details of the goods exporter are exporting.
- Amount declared on EXP form
What will be the foreign value of exporting goods is written in the export register. The amount is written in EXP form.
- Date of shipment and Bill Number
On which date the exporter send the goods to the importer is known as date of shipment. Bill number is the FDBC (foreign document bill collection) number.
- Date of negotiation
Date of negotiation is when the bank gives a forwarding letter with the letter of credit.
- Date of realization
On which date the bank received the amount of letter of credit.
- Amount realized in foreign currency
This is the foreign value of the currency which the bank received from the importer.
(b) Fill up EXP Form
My other duty in foreign exchange department was to fill up the export form. The name of vessel, date of shipment, bill of lading number, amount etc are written in export form. I got all those information from the documents like bill of lading, commercial invoice.
(c) Keeping Record of Export Import Register
Export import register is used to keep the record of total export of a company, especially garments factory. The garments company also issue back to back letter of credit on the export letter of credit.
(d) Fill up C Form
I had to fill up this C form in Mutual Trust Bank. The C form is known as statement FCS. This form is used for the purpose of inward remittance to Bangladesh Bank within 5th day of the following month when the transaction is occurred against the remittance. C form is required when
- A bank is receiving foreign currency from abroad in local currency
- When a customer withdraw fund from his foreign currency account.
(e) Fill up IMP Form
IMP form is a document of import letter of credit. For issuing letter of credit the bank should submit IMP form on behalf of importer. In IMP form the name of goods, quantity of goods, commercial invoice value of those goods, H. S. Code of the goods, country of origin, port of shipment etc should be written. As an intern my duty was to fill up those IMP form.
(f) Balancing Source Tax
This is balancing is the combination of FDBC (foreign Document Bill Collection) and LDBC (Local Document Bill Collection) amount which will be equal to the amount calculated by MTBL International Trade service (MITS). The balancing was done for every month, which means a record of monthly bill collection was kept.
Mutual Trust Bank is one of the most promising private commercial banks in Bangladesh. Every day Mutual Trust Bank makes an effort to increase its product and services although it provides a wide range of product and services. It is aimed at providing high quality financial service to contribute and the growth of industrialization, boosting up export, creating employment opportunity for the educated youth, raising standard of living of limited income group and overall sustainable socioeconomic development of the country. The foreign exchange department of Mutual Trust Bank is providing quality services to its client. Mutual Trust Bank Limited always tried its level best to perform financially well. The bank actually tries to satisfy overall all the customers individuals and commercials. But if the bank give target to each of its department to satisfy the customers it will give a positive result. The general baking and credit departments actually work with individual person. So this department has to provide separate services for separate customers. Foreign exchange department is quite different from these departments. This department not only contributes to the country but also foreign countries. The customers of foreign exchange department related with international business. So the customers should provide best service which will satisfy them and also help to generate income of the country. The bank also should keep in mind not only the customers; employees are also the asset of bank. The bank should provide enough facility to the employees. Suitable working place, handsome salary, excited bonus should provide to the employees. So that, they can give the best effort to the work in bank. In spite of trying to do well in some aspects Mutual Trust Bank Limited faced some financial problems from time to time. Sometimes the client negotiates in a wrong way to the foreign traders which cause some problems to bank. Some of the problems were lose of important documents, shortage of loans and advances, etc. These problems arouse time to time due to economic slowdown, interest rate fluctuation, emerging capital market, inflation in the money market and so on. The bank is trying to overcome all those problem and providing better quality service to its customer. Last but not the least, although various problem of Mutual Trust Bank, the employees have created very friendly working environment in the bank. It is heard that the working environment of bank is very formal and strict. But the employees of Mutual Trust Bank have made taken it as their home and worked as family members. This is a very good bonding. If this thing continues we hope that Mutual Trust Bank Limited will develop even more in the future.