L/C Breakdown of Mutual Trust Bank Limited
Letter of Credit breakdown means analysis on it. In this report, analysis on letter of credit of Mutual Trust Bank Limited has been described. How letter of credit work in this bank has also been described. The Mutual Trust Bank Limited is one of the popular banks which are working in Bangladesh for fourteen years. Some especial analyses have been done on letter of credit.
These are SWOT, STP and PESTLE analysis on letter of credit. This is totally a new analysis on letter of credit, where L/C is shown as a service and a marketing analysis has done on it. Some journal entries of letter of credit have also been described in this report. These journal entries include some new accounting treatment. Letter of credit is actually a mode of export and import business. Any country is very much dependent on its international trade. So in international trade letter of credit is a very important document. But for bank letter of credit is treated as service. All the employees of foreign exchange department of Mutual Trust bank try their best to improve this service. As Bangladesh is a developing country the opportunities of export import is increasing over years. But the problems are complicated bureaucracy, political unrest, corruption, high inefficiency cost, absence of autonomous regulatory bodies, erratic power supply, lack of administrative coordination, inefficient customs processing, etc faced by the exporter and importer. So, letter of credit is affected indirectly by the above mentioned problem. Although there is various problem in international trade, letter of credit is doing great effort to expand the business globally.
“Letter of Credit” a common word mostly used in bank especially in foreign exchange department. Foreign exchange department is responsible for dealing with and managing the purchase and sell of foreign currencies and is a highly specialized business. One of the largest businesses carried out by the commercial bank is foreign trading. The bank, which provides such operation, is referred to as rending international banking operation. Mainly transactions with overseas countries are respects of import; export and foreign remittance come under the preview of foreign exchange transactions. International trade demands a flow of goods from seller to buyer and of payment from buyer to seller. In this case the bank plays a vital role to bridge between the buyer and seller.
Letter of credit is a documentary credit which is the classic form of international trade payment, especially in trade between distance partners. This method substantially reduces payment related risk for both exporter and importer.
In this report some analysis on letter of credit has been done. SWOT analysis, PESTLE analysis and STP analysis has been done on letter of credit. Some accounting treatment has been shown in this report. Mutual Trust Bank Limited has a strong foreign exchange department which works on export, import and remittance. All those work is too broad. Among all those work letter of credit is a small but very important part of foreign exchange department.
There are many modes of international trade payment. These are cash with order, cash with delivery, documentary credit, bills for collection, open account. The documentary credit method is less risky than other methods. Now this method is becoming popular day by day.
In the Mutual Trust Bank Panthapath Branch there are ten peoples are working continuously with great effort and teamwork. They develop the branch with their skill and talent day by day. There are more than 70 clients and 25 countries they are dealing with. They believe in teamwork and extreme hard work.
Objective of the Report
- To get an overall idea about the Letter of Credit of Mutual Trust Bank Limited.
- To relate the theoretical knowledge to the original banking process of Mutual Trust Bank Limited.
- To know the marketing strategy of letter of credit service of Mutual Trust Bank Limited.
- To know the procedure of letter of credit
- To know the documents which are needed to open a letter of credit.
- To know advantage of letter of credit
- To know the risk in documentary credit method
- To know the basic working system of export like issuing of EXP, balancing source tax.
- To know the uses of different type of registers used for export and import.
- To present my observation and suggestion to the bank.
This report contains both primary and secondary data. The sources that have been used to gather and collect data is given below-
- Personal interview
- Annual Report of Mutual Trust Bank Limited from 2011-2012
- Web site of Bangladesh Bank
- Other Web sites
Overview of Mutual Trust Bank Limited
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.
Break Down of Letter of Credit
Letter of Credit
Letter of Credit id a most recognizable word used in financial institution like banks. A letter of credit is a document issued by a financial institution, or a similar party, assuring payment to a seller of goods and provided certain documents have been presented to the bank. These are documents that prove the seller has performed the duties under an underlying contract and the goods have been supplied as agreed. Moreover through letter of credit an exporter is to be assured to get the payment if the importer is not able to pay.
Types of Letter of Credit
Import/export Letter of Credit
Commercial letter of credit can be termed as import and export LC depending on whose perspective it is being looked upon. For the importer it is termed as Import LC and for the Exporter of goods, Export LC.
Revocable Letter of Credit
Revocable letter of Credit, importer and the bank who established the LC, can be manipulated or made any kinds of corrections without informing the exporter and getting permissions from him. Now there is no more use of this type of letter of credit.
Irrevocable Letter of Credit
Any change (amendment) or cancellation of the LC (except it is expired) done by the Applicant (importer) through the issuing Bank must be authenticated by the beneficiary (exporter) of the letter of credit. Whether to accept or reject the changes depends on the exporter.
Confirmed Letter of Credit
A letter of credit is said to be confirmed when another bank give a confirmation or guarantee to honor a complying presentation at the request or authorization of the issuing bank.
Unconfirmed Letter of Credit
Unconfirmed letter of credit does not require the other bank’s confirmation.
Transferrable Letter of Credit
A Transferable Credit is the one under which the importer has the right to make the credit available to one or more subsequent beneficiaries. This means, under one letter of credit importer can buy good from more than one exporter.
A letter of credit can be transferred to the second beneficiary at the request of the first beneficiary only if it expressly states that the letter of credit is “transferable”. In this case a bank is not forced to transfer a credit.
Untransferable Letter of Credit
In untransferable letter of credit seller does not allow the buyer to buy from other sellers by opening one letter of credit. In international commerce, it is required that the credit will be untransferable.
Back to Back Letter of Credit
This is the most commonly used letter of credit by the garments exporter. This type of LC consists of two separated and different types of letter of credit. First one is established in the benefit of the seller to export the goods. For producing exported goods the manufacturer needs to buy some raw materials. In this case, the manufacturer opens another letter of credit against of master letter of credit. This type of letter of credit is known as back to back letter of credit. Back-to-back letter of credit is issued in case of intermediary trade. Intermediate companies such as trading houses are sometimes required to open letter of credit by supplier and receive export letter of credit from buyer. Bank will issue a letter of credit for the intermediary company which is secured by the export letter of credit (Master letter of credit). This letter of credit is called “Back-to-back letter of credit”.
Usance Letter of Credit
Usance letter of credit, bank did not pay to the exporter immediately after checking the valid documents. The payment is given after a certain duration which is accepted by both of the buyer and seller. In reality, seller will give an opportunity to the buyer to pay the required money after taking the related goods and selling them. The duration of this letter of credit is 90, 120, 180 days etc.
At Sight Letter of Credit
Another name of At Sight Letter of Credit is Cash LC. It is a kind of credit that the announcer bank after observing the carriage documents from the seller and checking all the documents immediately pays the required money.
Red Clause Letter of Credit
An exporter can take the pre-paid and parts of the money from the bank before sending the products through Red Clause Letter of Credit. The first part of the credit is to attract the attention acceptor bank. The terms and conditions are written by red ink, so this letter of credit is named as red clause letter of credit.
Back to Back Letter of Credit Mostly Used in MTBL
Mutual Trust Bank, Panthapath Branch mainly works for back to back letter of credit because most of the customers are garments factory of this branch.
Generally a standard, commercial letter of credit is a document issued mostly by a financial institution, used primarily in trade finance, which usually provides a permanent payment process. Back to back letter of credit issued for an exporter who is already holding an L/C in his or her favor.
Two letters of credit used together to help a seller finance the purchase of equipment or services from a subcontractor. An exporter of readymade garments needs to buy some other ingredients to make the exporting goods. In that case the exporter issue another letter of credit against of the export letter of credit (master letter of credit), is known as back to back letter of credit. Moreover it can be stated like that one letter of credit serves as the collateral for another.
Documents Required for BTB Letter of Credit
As back to back letter of credit is mostly used in Mutual Trust Bank Panthapath branch as an intern I got the opportunity to know about back to back letter of credit more than the other types of letter of credit. Letter of credit is a set of documents. Bank actually works with documents not with goods. All the documents are equally important for credit.
Documents Submitted at the Time of BTB Letter of Credit Opening
- Demand promissory note – 2 copies.
- L/C application – 1 copy
- LCAF (Letter of Credit Authorization Form) – 6 copies (LCAF in lieu of import license)
- Insurance cover note with money receipt
- Request letter of opening L/C – 1 copy
- Declaration of an importer – 1 copy
- Authority to debit account – 1 copy
- Request letter of amendment – 1 copy (needed for amendment only)
- Pro- forma invoice
- IMP Form (foreign Exchange regulation act. 1947) – 4 copies
Documents Submitted after BTB Letter of Credit Opening
- L/C Copy- 6 copies
- 2 copies for advising bank- 1 for advising bank and other for exporter
- 2 copies to importer – 1 as officer copy and other for customs clearance
- 2 copies for opening bank – 1 copy as office copy and other for CCI &E
- L/C forwarding letter – 1 copy
- Reimbursement authorization – 3 copies
Negotiation of export documents
Negotiation stands for payment of value to the exporter against the documents fixed in the L/C. If documents are in order, MTBL purchases (negotiates) the same on the basis of banker customer relationship. This is known as Foreign Documentary Bill Purchase (FDBP).
Payment of Bill
Bank sends the documents to the L/C opening Bank for payment with a forwarding letter detailing the enclosures. Upon realization of proceeds Mutual Trust Bank pass the following vouchers.
Mutual Trust Bank Panthapath branch only purchase the local bill which is known as Inland
Documentary Bills for Purchase (IDBP). The bank has to purchase the local bills through some process. The Inland documentary bills for purchase (IDBP) is done in the following ways,-
- MTBL gets L/C from other Bank.
- Then MTBL officer advising the L/C to the party/Beneficiary.
- Customers then present the documents for negotiation to MTBL.
- MTBL officials examine the documents to confirm the terms and conditions of L/C.
- The documents are then forwarded to the L/C opening bank.
- The L/C issuing bank gives the acceptance and forwards an acceptance letter,
- In the acceptance letter there is a maturity date when the will payment the bill.
- After receiving the acceptance letter, payment is given to the customer on by purchasing the bill of Acceptance.
SWOT Analysis on Letter of Credit
SWOT analysis is a measurement tool to identify the strength, weakness, opportunities and threats of a business or an organization. SWOT analysis can be done on place, product, person, industry etc.
- Strength and weakness are the part of internal environment of the product or service.
- Opportunities and threats are the external environmental part of product or service.
Guarantee of payment
Letter of credit works as a guarantee of payment. Through letter of credit issuing bank assured that the payment will be given. If the buyer failed to pay the bill the bank would pay it to the seller.
Works on behalf of buyer
Issuing bank works on behalf of buyer. Since buyer is the holder of Letter of credit, Bank acts on behalf of buyer. Opening bank remits amount only after satisfaction of all terms and conditions of letter of credit with documentary proof. This arrangement protects importer and minimize time, as bank acts on behalf of him.
No payment is made until all the documents are received. Bank is responsible for documents. After checking all those documents bank made the payment.
Letter of credit is more expensive than other methods of payment. Compared to other payment mode of transactions, cost of operating letter of credit procedures and formalities are more, which may be an additional expenses to an importer especially on amendment, negotiation etc.
Take long time to payment
Strict compliance is required of payment. The payment is given after the shipment. So the exporter has to wait a long time for the payment.
Paper work can be very time consuming. There is a lot of paper work for issuing letter of credit. This is time consuming. In foreign exchange department there many registers books. The employees should keep record of every single work on letter of credit in these registers books.
As a result they have to do a lot of paper works. They also have to keep record of letter of credit as soft copy. This all works are really very time consuming.
The foreign trader might unknown to the letter of credit opener. Letter of credit makes an easier way to do business with unknown seller and buyer. Through the help of bank the local product is becoming popular in international market. All the legal formalities are done by the bank to help the local trader.
Trough Letter of credit a businessman can step up to expand the business globally. For international trade exporter and importer may not know each other. In this case on the basis of letter of credit the local trader can expand their business.
Political risks of the country hamper the shipment process. As letter of credit is a document the political instability does not hamper it directly. But for the exporter and importer it brings desolation by making the shipment of goods delay.
More emphasize on documents
One of the major disadvantages of letter of credit is that L/C is processed or operated on the basis of the documents. The bankers give more emphasize on documents not the quality of goods. So if the quality of goods is lower it will cause loss to the importer. The parties under letter of credit do not have any right to physically verify the contents of goods.
Currency fluctuation is another disadvantage of Letter of credit. Normally buyer/importer places purchase orders once in a year and opens letter of credit accordingly. The exchange rate may differ at the time of effecting payment. So, if any loss due to fluctuations in foreign currency contracted under letter of credit, need to be beard by exporter. This is also one of the major demerits of LC.
STP analysis is a process of segmentation, targeting and positioning of a product or service in the market. This is an analytical approach that helps a firm where (target market) and how (the product or service) to make market strategy.
Segmentation is a process of dividing the entire market into smaller groups and the needs of the consumers are same.
(a) Determine the Actual and Potential Customers
As foreign exchange department is related with banking sector it provides service to the customer. The services are issuing letter of credit, working with remittance, working with export and import business. For export and import business letter of credit is the most important document which is provide by Mutual Trust Bank, Panthapath branch as one of its services. So to provide letter of credit as a service the potential and actual customers for this bank is all the people related with export import business.
(b) Identify the Segments
The foreign exchange department of Mutual Trust Bank, Panthapath branch divided the whole market into two segments. The individual related with export import known as commercial group and companies related with export import known as industrial group.
(c) Analyzing the Intensity of the Competitor in the Market
As foreign exchange department is related with banking sector all the banks are competitors. Mr. Fazlul Haque, the foreign exchange department head of Mutual Trust Bank Panthapath branch, stated that the location of other banks, capital and reserve of foreign currency might be the intensity of other banks. But mutual trust bank consider the location of other banks authorized dealer branch as the main strength of the competitors.
(d) Selecting the Attractive Customer Segments
As it was mentioned above that the foreign exchange department of Mutual Trust Bank Panthapath branch divided the market into two groups, the commercial and the industrial groups. The commercial group has been segmented by the product they imported or exported. Commercial export and import tiles, sanitary items, color which are used in producing cloths, item of fire extinguisher, electronic goods, dry fish etc. Industrial group are also segmented by their product such as garments factory, pharmaceuticals industry, ceramic industry, jute industry, frozen food, leather goods exported companies etc.
As Mutual Trust Bank panthapath branch is an authorized dealer branch, it works with each industry. Product like jute, pharmaceuticals, and machineries are imported and exported through letter of credit. From their two segments commercial and industrial groups they targeted two major groups.
(a) RMG Sector
This branch mainly targets the RMG sector. More than thirty garments companies are its potential client. Almost 60% of letter of credits are issued for these garments companies. Other 40% letters of credit are issued for other industrial sector pharmaceuticals, ceramics, frozen food etc. All those garments company issued export, import letter of credit. But more or less all companies open back to back letter of credit for the purpose of buying accessories; yarn, fabrics etc against of the export letter of credit.
(b) Exporter and Importer of Tiles and Sanitary Items
There are many segments in the commercial groups. As the authorized dealer branch of Mutual
Trust Bank located in Panthapath area so it has targeted its commercial group on the basis of location. As the green road, hatirpool area is popular for tiles and sanitary items the bank targeted the exporter and importer of tiles and sanitary item. So this group is major targeted group. From the commercial segment most of the letter of credit is issued of tiles and sanitary items.
Positioning can be defined as a way the market creates an impression in the customers mind. Positioning concept means sell the benefit of a product or service to the buyer. The positioning concept focus on the emotional benefit that the buyer will feel it by using the service or product.
(a) Product Positioning Process
As the target groups of Mutual Trust Bank, Panthapath Branch, are RMG sector and Commercial of tiles and sanitary item the bank is giving some extra benefits to them. Mutual Trust Bank, Panthapath branch always state that the whole work of letter of credit is its work. This bank does all the letter of credit related work on behalf of its client.
(b) The Emotional Benefits
Emotional benefit means the feelings of a customer about the product or service of a company. The emotional benefits given to the customer by Mutual Trust Bank are given below:
Low schedule of charge
Mutual Trust bank offer low charge for issuing letter of credit. For letter of credit cancellation this bank doesn’t offer any charge where other banks charge BDT 200 -500.
Short term loans on letter of credit
MTBL give short term loan with a fixed repayment date. Bank allows this credit for buying, processing, manufacturing, packing and shipping of the goods meant for export. The bank gives this credit to exporter when he gets the foreign order. The first step is to fix a packing credit limit based on the need of the borrower and the exporter is permitted to calculate a part or whole of the amount of limit according his requirements. It gets repaid with the proceeds of the bill drawn on the foreign buyer. a packing credit advances does not normally extend beyond 180 days and has to be liquidated by negotiation or purchase of the export bills covering the particular shipment for which the packing credit was granted. The packing credit facility may be extended in form of hypothecation of goods, pledge, and export trust receipt
MITS Service (MTBL International Trade Service)
MITS (MTBL International Trade Service) a centralized service for letter of credit. This is a centralized branch for all the letter of credit of mutual trust bank. For opening a letter of credit the customer need to go head office for the confirmation for any bank. But in this bank all branches do this work on behalf of their customer. So the customers don’t need to go head office and waste their valuable time.
Discounting facilities for the client
This discounting facility on letter of credit is quite different from the discounting concept of marketing. In Mutual Trust Bank, at the time of purchasing documents this facility has been offered. If the seller of bill wants a partial payment the bank give this facility. This discounting facility especially offered for back to back letter of credit.
Case to case letter of credit
Case to case letter of credit is facility, offered by Mutual Trust Bank for the small trader. If any client wants to open letter of credit for a very small amount such as $2000, $5000 the bank is giving a very quick service for that letter of credit. In this way small trader are benefited by Mutual Trust Bank to expand their business globally.
PESTLE Analysis on Letter of Credit
PESTLE analysis is a tool used by companies to track the environment they are operating in to launch a new product or service. The expended form of PESTLE is P for Political, E for Economic, S for Social, T for Technological, L for Legal and E for Environmental. It gives a bird’s eye view of the whole environment from many different angles that one wants to check and keep a track of while thinking on a certain idea or plan.
Elements of Political Factor
In political factor the tax policy, tariff and political stability are included.
Effect on Letter of Credit
- As letter of credit is a set of documents the tax policy and tariff does not have that much influence. The tax policy and tariff of government affect the goods which are imported or exported.
- Political instability indirectly affect the letter of credit, because of political instability the importer or exporter is not able to shipment the goods.
Elements of Economical Factor
The economic factor includes exchange rate, interest rate and economic growth.
Effect on Letter of Credit
- The interest rate does not affect directly the letter of credit.
- The exchange rate of currency has major impact on letter of credit. Importers open a L/C and may import several times on that L/C by splitting the total amount of L/C. In that case there will be several FDBP (foreign document bill purchase) which will be affected by the fluctuation of exchange rate.
Elements of Social Factor
A social factor is related with cultural aspects, age distribution, population growth rate etc.
Effect on Letter of Credit
- Social factor does not affect letter of credit. The imported or exported goods might affect the social factor but not the letter of credit. For example, the importers of clothes import different types of clothes from India, Pakistan etc which affect our culture but not the letter of credit.
Elements of Technological Factor
The technological factor includes R&D activities, automation, technology incentives and rate of technological change.
Effect on Letter of Credit
- After opening cash L/C the voucher are to be sent to the advising bank by SWIFT/Telex/Airmail..
- SWIFT (Society for Worldwide Interbank Financial Telecommunication) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment. All the transaction of letter of credit depends on SWIFT. Without this technology letter of credit might not be much popular in export import business.
Elements of Legal Factor
Legal factors include the consumer law, discrimination law, employment law, health and safety law etc.
Effect on Letter of Credit
- Letter of credit follows the foreign exchange regulation act 1947. All the authorized dealers follow the rules of Bangladesh Bank to issue the import or export letter of credit.
- Letter of credit does not affect consumer, employment, health and safety and discrimination law.
Elements of Environmental Factor
Environmental factors include ecological and environmental aspects such as weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance.
Effect on Letter of Credit
As letter of credit is a set of documents it does not affect the environmental factor anyhow.
Findings from Analysis
After Analyzing the Letter of credit of Mutual Trust Bank Limited I would like to express some important findings which are given below;
- On the basis of SWOT analysis of letter of credit it can be stated that the strength, weakness, opportunities, threat for letter of credit will be almost same for all banks.
- As letter of credit is the more expensive method for payment and time consuming it can be minimize respectively through the help of government and negotiation between buyer, seller and bank.
- On the basis of STP analysis, Mutual Trust bank segmented its whole customer into two groups. From those two segmentations it targeted its focused customer. Here MTBL, done this targeting on location basis. To be in a good position on its customers mind MTBL is providing many benefits.
- Letter of credit does not affect environmental and social factors of pestle analysis. On the other hand the political factors does not affect directly to letter of credit. Political instability hampered the shipment process.
- Legal factors have a great impact on letter of credit. The legal factor affects directly. Bank must have to follow the foreign exchange policy to issue letter of credit.
- The economic factor affects the letter of credit indirectly. Fluctuation of exchange rate effect the export import business.
- The political factor affects letter of credit indirectly. Political instability hampered the export import business. Due to the delay of shipment process the export and import business are hampered.
- Letter of credit becomes so popular because of technology. Through SWIFT, TELEX the working process of letter of credit become so easier.
- SWOT and PESTLE analysis on letter of credit are almost same for all banks.
- STP analysis will differ from bank to bank. One bank can segment, target and make position of letter of credit in various way. The customers will not be same for all banks.
- Product positioning is important for market analysis but the employees are not so much aware of the positioning of their letter of credit service. They may apply the marketing concept of positioning product on letter of credit.
After three months internship and analyzing the letter of credit process, I would like to mention some recommendations. The recommendations are given below-
Help of Government
The cost of letter of credit can be minimized with the help of government. All the banks keep some charges for the letter of credit service. This charge varies from bank to bank. The government can make some rules on the charges of letter of credit.
Applying Marketing Concept on Letter of Credit
The Bank gives more importance on credit services. It diversified all the products of loan according to the needs of customers. But the bank didn’t apply any theory of marketing like targeting, positioning, segmenting for foreign exchange department. However, foreign exchange department add some extra income in banking activities. The bank should come up with new ideas to grab the attention of exporter and importer.
Take Letter of Credit as a Service
The employees of foreign exchange department prefer letter of credit as a document rather than a service. If the employees prefer letter of credit as a service, it can be provide in a better way.
Provide Extra Benefits
The employees of foreign exchange department may provide extra benefit such as concept of exchange rate, giving upcoming ideas about financial market to the customers. So Mutual Trust Bank Ltd can grab the attention of more garments factory.
Recommendation on Mutual Trust Bank
Recruiting Best People
Talented and hard working employees should recruit. So they can increase the productivity and quality of the service of this bank.
Better Customer Service
Better Customer Service should be provided in order to attract more clients. If customers are not satisfied about services, it will incur loss to the organization.
New Services for Commercial Traders
Some new services should provide to customer who are opening letter of credit. So the bank will get more loyal customer. For example bank can offer a tour package.
Comfortable Working Place
The bank should provide large working place for its employees so that they will feel comfort. The large space will also help the customer to finish their work in a comfort zone.
Recommendation on Internship
Specify the Work
The duration of 3 months internship is too short to learn the working process of bank, especially work of foreign exchange department. So the department should specify the work for the intern.
Provide Suitable Working Place
Mutual Trust Bank has a few of facilities for intern. As the bank is taking so many interns through the year it should provide a suitable work place for the intern.
Provide Facilities for Learning
As the bank employees remain so much busy with their work, they do not have enough time to show the detail work to the intern. As a result the learning process remains incomplete. So the bank should provide the interns with the facility of learning.
Provide Printed Pay-Order Slip
In Mutual Trust Bank pay orders are written manually. To err is human. So some problems occur during writing such as spelling mistake, wrong address etc. If the bank serve printed pay order the possibility of error might be lower.
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.