General Banking System and Organization Overview of Mutual Trust Bank

General Banking System and Organization Overview of Mutual Trust Bank

Mutual Trust Bank Ltd (MTBL) is sponsored by a group of dynamic Bangladeshi Entrepreneurs, Industrialists, Educations and Professionals. MTBL is one of the renowned and scheduled private commercial bank of Bangladesh. The company was incorporated on September 29, 1999 under the 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 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:

  1. All types of commercial banking activities including Money Market operations.
  2. Investment in Merchant Banking activities.
  3. Investment in Company activities.
  4. Financiers, Promoters, Capitalists etc.
  5. Financial Intermediary Services.
  6. Any related Financial Services.

Services of the Mutual Trust Bank Ltd: Mutual Trust Bank provides various services. Different types of services are given below-

  • Institutional Bank
  • Corporate Banking
  • Consumer Banking
  • Commercial Banking
  • Lease Finance Banking

The Company Bank operates through its Head Office at Dhaka Gulshan MTB Center and 55 branches and 12 SME Service Centers. The Company/Bank carries out international business through a Global Network of Foreign Correspondent Banks.

The Registered Office of the Bank is:

MTB Centre, 26 Gulshan Avenue Plot 5,Block SE(D), Gulshan 1, Dhaka 1212
Phone:880(2) 8826966

Fax:880-2-882-4303 9762,


The Company (Bank) operates through its Head Office at Dhaka and 55 Bank branches and 12 SME branches, 14 MTBSL branches Service. The Company/Bank carries out international business through a Global Network of Foreign Correspondent Banks. In its effort to provide Excellence in banking services, the Bank has launched fully automated Phone Banking service, joined a countrywide shared ATM network and has introduced a co-branded credit card. A process is also underway to provide e-business facility to the bank’s clientele through Online and Home Banking solutions.

Bank’s profile

  • Bank’s Name: Mutual Trust Bank Limited
  • Established: 05 October, 1999 in Dhaka
  • Industry: Banking
  • Type: Private
  • First Capital: Tk. 10 million
  • Present Capital: 2450 million
  • Total reserve: 2518.1 million
  • Number of employee: 2270
  • Number of branch: 67
  • Company Registration No: C38707(665)/99 on September 29, 1999
  • Bangladesh Bank Permission No: BRPD (P)744(78)/99-3081 on October 5, 1999
  • Head office: MTB Centre, 26 Gulshan Avenue Plot 5, Block SE(D), Gulshan 1, Dhaka 1212
  • Product and service of MTBL:
    • Consumer Credit Scheme
    • Special Deposit Scheme
    • Monthly Savings Scheme
    • Credit Card
  • Visa
  • Master Card
  • MTBL ATM Service
  • Western Union Money Transfer
  • MTBL housing loan
  • Dialogue: You can bank on us
  • Corporate Website:
  • SWIFT (Society for Worldwide Inter-bank Financial Telecommunication): MTBL BD DH
  • Telephone : 717 0138, 717 0139, 717 0140
  • Fax : 880-2-956 9762


  • Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI, )
  • The Institute of Banker’s Bangladesh (IBB)
  • Bangladesh Foreign Exchange Dealer’s Association (BAFEDA)
  • Bangladesh Institute of Bank Management (BIBM)
  • International Chamber of Commerce Bangladesh Limited (ICCB)
  • Bangladesh Association of Publicly Listed Companies (BAPLC)
  • Bangladesh  Association of Bank (BAB)

The Mission

We aspire to be the most admired financial institution in the country, recognized as a dynamic, innovative and client focused company that offers an array of products and services in the search for excellence and to create an impressive economic value.


Mutual Trust Bank’s vision is based on a philosophy known as MTB3V. We envision MTBL to be:

  • One of the Best Performing Banks in Bangladesh
  • The Bank of Choice
  • A Truly World-class Bank

The Values

  • Customer Focus
  • Integrity
  • Teamwork
  • Respect for the individual
  • Quality
  • Responsible Citizenship

MTBL’s Objectives

  • By using of latest version of technology to serve the customer as quickly and better way.
  • By better relationship between the bank and the customer to take participation in the growing economic society.
  • By using of better equity to certain the highest profit and provide it to the customer.
  • To hold the bank’s performance and continue it.
  • By effective banking we can make strong position in the competition banking market.

Strategic incentive

They set the strategic intent for them are-

  1. Out sell
  • Keep motivation the sales staff, listen to their feedbacks on changing customers needs and adjust to the customers demand.
  • Provide constant sales training to enhance their selling skills and overcome customer objection. Generate potential and successful referrals to meet aggressive liability and asset growth. Working as a team to succeed every business opportunity.
  1. Out serve
  • Constant effort to maintain and develop SQi score by practice.
  1. Talent management
  • Monthly reviewing the staff’s performance.
  • Job rotation
  1. Understanding customer needs
  • To update all customers details by the first quarter of 2007.
  1. Financial foundation and objectives
  • To increase sales revenues by 15% from year 2006.

Service of MTBL

Retail Banking:

Consumer credit is a concept, which has conceived in the minds of many a banker and has been through about to bring the unexplored area of the consumers who belong to the middle class to enjoy the benefits of Banking finance. The group consists of the people who are employed individuals, self-employed persons and even businessmen. The Mutual Trust Bank arranges credit facilities for these individuals who have a limited income and helps them to buy a car or any electric items, like- TV, fridge, etc. or spend for house renovation or expenses for marriages and enjoy a minimum comfortable living standard.

Corporate Banking:

At Mutual Trust Bank we provide completes range of solutions to meet Corporate Customers’ requirement. Our Corporate Banking solutions include a broad spectrum of products and services backed by proven, modern technologies.

Corporate Lending:

Our specialist teams offer a comprehensive service providing finance to large and medium-sized businesses based in Bangladesh. For more information as to how we might best meet your corporate debt needs, please contact us at our Corporate Head Office.

Structured Finance:

We have a specialist Structured Finance Team who arrange and underwrite finance solutions including Debt and Equity Syndication for financial sponsors, management teams and corporate. Also we provide corporate advisory services. We aim to provide tailored financing solutions with a dedicated team who can rapidly respond to client needs.

Following are some of the products and financial tools of Corporate Banking:

  • Project Finance
  • Working Capital Finance
  • Trade Finance
  • Cash Management
  • Syndicated Finance, both onshore & off-shore
  • Equity Finance, both onshore & off-shore
  • Corporate Advisory Services

Large Loan and Project finance:

In order to cater the demand of client Mutual Trust Bank has segmented its portfolio in terms of loan size. As per this segmentation any loan over Tk. 10.00 Core falls under the purview of Large Loan Unit in Mutual Trust Bank, there is also a separate Project Finance unit who evaluate the business. The unit is entrusted to handle the portfolio in a focused manner. MTBL is always in fore front to support establishment of new projects of diverse nature which will help to broaden the manufacturing arena vis-à-vis to generate to employment.

Organizaiton’s Divisions

– Board Division – Training Institute

– Internal Control & Compliance – Engineering Department

– Human Resource Division – MTBL Communication Department

– General Services Division – Share Department

– Group Finance – Card Division

– MTBL international trade service division – ITS Division

– International division – Banking Operation Department

– NRB division – Retail Banking Division

– Treasury Department – Special Asset Management Department

– Credit Risk Management Division – Corporate Banking Division

– Risk Management Unit – Credit Administration Department

Numbers of Branches of MTBL

The Company (Bank) operates through its Head Office at Dhaka and 49 branches and 09 SME Service Centers and 16 MTBL securities office. The Company/ Bank carry out international business through a Global Network of Foreign Correspondent Banks.

  • Aganagar Branch – Uttara Model Town Branch – Tongi Branch
  • Agrabad Branch – Sylhet Branch – Sreenagar Branch
  • Alankar More Branch – Sonargaon Branch – Savar Branch
  • Aman Bazar – Shanir Akhra Branch – Rangpur Branch
  • Babu Bazar Branch – Rajshahi Branch – Raipur Branch
  • Banani Branch – Progati Sarani Branch – Principal Btanch
  • Basundhara City Branch – Panthapath Branch – Pabna Branch
  • Pallabi Branch – Nazirhat Branch – Bogra Branch
  • Narayangonj Branch – Moulvi Bazzar Branch – Kushtia Branch
  • CDA Avenue Branch – Mohammadpur Branch – Feni Branch
  • Chandra Branch – Madaripur Branch – Jessore Branch
  • Chaek Moghaltili Branch – Khatungonj Branch – Gulshan Branch
  • Chokoria Branch – Jubliee Road Branch – Gazipur Branch
  • Cox’s Bazar Branch – Elephant Road Branch – Fulbaria Branch
  • Dhanmondi Branch – Khatungonj Branch – Dilkusha Branch
  • Dholaikhal Branch – Dhorkora Bazar Branch – Joypurhat Branch

SME / Agre Branch            

  • Nazumeah Hat SME/ Arge Branch – Noria SME/ Agre Branch
  • Ramchandrapur Bazar SME/ Agre Branch – Kaliganj SME/ Agre Branch
  • Belkuchi SME/ Agre Branch – Haidergonj SME/ Agre Branch
  • Ishwardi SME/ Agre Branch – Gafor Gaon SME/ Agre Branch
  • Dagoanbhuiyan SME/ Agre Branch

MTB Securities Limited

  • MTBSL Corporation Head Office – Alanker Mour Office
  • MTBSL Extension Office – CDA Avenue Office
  • Banani Office Branch – Uttara Office
  • Agrabad Branch – Sylhet Office
  • Dhanmondi Office – Rangpur Office
  • Fulbaria Office – Rajshahi Office
  • Gulshan Office – Progati Saroni Office
  • Narayangonj Office – Pallabi Office

General Banking System of MTBL

Account opening:

As an internee officer at first I was taught how to deal with clients who are interested to open an account. To open an account at first properly a form provided by the bank has to be fulfilled. There are two types of account form categorized as savings account and current account. To open an account client must have an introducer. In this bank introducer means a person or organization who is currently maintaining an account with this bank. The transaction of the account must at least three month. For personal account valid personal identification document is required. For organization relevant document is required. Like –for business organization trade license is required. To open a savings account a person/persons must be adult and mentally sound. For Organizations and institutions one or more authorized person from that organization will handle the account. Person(s) will be selected by that respective organization/institution. My job was to monitor the fulfillment of those conditions. After fulfill the required procedure if at least two authorized officer satisfied and signed then an account is opened. An account number is given.   

Procedure for opening A/C are shown in bellow-

It is side that, there is no banker customer relationship if there is no A/C of a person in that bank ,by opening an A/C banker and customer create a contractual relationship. However selection of customer for opening an account is very crucial for a bank.

Cheque book issue:

Issuing cheques book was another work I was assigned for while working for GB department. When a client present a request letter which the client gets with the address confirming letter, a cheque book is issued. Then I sent the cheque book for authorization in system. When the cheque book is finished, the client is required to submit a requisition form which has been kept in record for future reference.

Account close:

For two reasons, one can be closed. One is by banker and other is by the customer.

By banker: If any customer doesn’t maintain any transaction within six years and the A/C balance becomes lower than the minimum balance, banker has the right to close an A/C.

By customer: If the customer wants to close his A/C, he writes an application to the manager urging him to close his A/C.

Different procedures are followed in cash of different types of A/C to close:

Fixed deposit A/C is closed after the termination of the period.

Brick by Brick A/C is very easily closing if one of the clients didn’t pay his/her monthly installment at the bank three months one after one, in this way three months.
Another account’s will be closed on the parties’ advice, if they want to close any one of the account clients must have to submit an A/C closing letter through des pass. Then the Sr. Principal Officer checks it out and closes the A/C.

Closing process for current & savings A/C:

After receiving customer’s application. The officer verifies the balance of the A/C.
He then calculates interest and other charges accumulated on the A/C.
If it bears a credit balance, the officer writes advice voucher. He gives necessary accounting entries post to accounts section. The balance is returned to the customer. And lastly the A/C is closed. But in practice, normally the customers don’t close A/C willingly. At times, customers don’t maintain any transaction for long time. Is this situation at first, the A/C becomes dormant and ultimately it is closed by the bank.

Collect different types of cheque:

The cheque in-charge officer collects different types of cheque, DD, PO, from different account holder. Then the cheque in-charge officer divided the whole cheque in different group which is transferable ,Online, OBC,PO, DD, Clearing cheque after that the officer complete the different procedure.

Procedure complete in different types of remittance:

The word remittance means sending money from one place to another place through post or telegraph. Commercial banks expose this facility to its customers by means of receiving money from one branch of the bank and making an easier arrangement of payment to another branch within the country. Considering this quick transaction, the modes of Bank remittance are categories as under:


The main instruments used by MTBL, Aganagar Branch for remittance of funds.

  1. Payment Order Issue/Collection
  2. Demand Draft Issue/Collection
  3. Inward/ Outward Remittance Services
  4. Endorsements
  5. Travellers Cheque Issuance
  6. IBC/OBC Collection.

Payment Order Issue/Collection:

Payment order is the process of money transfer from payee to payee within a certain clearing area through banking channel. It’s an order of local payment on be half of the Bank or its constitution. A customer can Purchase different modes of payment order such as payee by check and payee order by cash.

The Mutual trust bank limited charge different amount of commission on the basis of payment order amount and including the vet, VAT will be realized from the clients as per government rules with that charge.

When PO is lost:

If the instrument is lost, the holder will inform to the issuing bank immediately. Bank will mark ‘stop payment’ on the Bills payable (PO) Register. Buyer will then ask for a new instrument by submitting a GD copy, and indemnity bond. A new instrument will be delivered.


The meaning of OBC is Outward Bill for Collection. OBC procedure is uses when any person or party submits the cheque for deposit. Basically those cheques are belonging to the bank located out side of city. Officer gives OBC seal on this type of cheques and later sends a letter to the manager of the branch of the some Bank located in the branch on which cheque has been drawn. After collection of that bill branch advises the concerned branch in which Cheque has been presented to credit the customer account through Inter Branch Credit Advice (IBCA). This is the procedure of OBC mechanism.

OBC Procedure:

When another bank’s Check received from customer for clearing, which bank is located outside of the city that’s moment this branch complete the general procedure & send to that cheque by post to that bank whose bank issue this cheque. When that bank found OBC cheque at first that bank check the amount of account and signature, if everything has right, that bank cut the different charge and made a new check or P.O /D.D for rest of the amount after that return that cheque after entry in the OBC register.

  1. Place the OBC sill in the cheque and deposit slip.
  2. Place “payee’s a/c will be credited on realization for MTBL, Babu Bazar, Dhaka” at the         back side of the cheque.
  3. “Special Branch” sill is placed at the top left Corner.
  4. Write an advice and forward this advice to the respective bank for collection.
  5. Then the deposit slip and copy of advice are attached together in OBC file.


IBC means outward bill for Collection. When the outside of the city’s bank branch or Mutual trust bank ltd. any branch sends to the OBC in our branch that’s moment our branch maintain IBC. if the OBC cheque is to be different banks branches cheque, that moment our branch send the DD/PO to that bank by cutting different charge into general procedure, and if the Cheque is our banks different branch, that’s moment our branch maintain IBDA voucher and send to the Bangladesh Bank by Principal Branch.


Mutual Trust Bank is one of the third generation banking service providers, Day by day Mutual Trust Bank is going upward. It is strongly believable that Banking services, marketing are different from goods marketing in a significant way. It involves totally different strategy and tactics. It also has to discover new avenues to reach its goals. It must be a people’s bank. For this it should go to people’s heart through various schemes with better service through its employee.

Now MTBL has been trying to operate its business successfully in Bangladesh since 1999 through developing an image and goodwill among its clientele by offering its excellent services. The success has been resulted from the dedication, commitment and dynamic leadership of its management. During the short span of time of its operation, MTBL has successfully grabbed a position as a progressive and dynamic financial institution in the country. By proliferation of new advance services, expanding use of automated equipment and electronic transfer of financial information, Mutual Trust Bank Limited will be a truly fascinating institution in the near future.

Business today doesn’t have “national” boundaries- it reaches around the world. Human resources must ensure that the appropriate mix of employees in terms of knowledge, skills, cultural adaptability is available to handle global assignments. In order for human resources to meet this goal, they must train individuals to meet the challenges of the global village.

According to Mehboobur Rehman of CBC, “HR plays the role of a facilitator in meeting the demands of the front line function, in a holistic approach to the business.” The human resource department of Mutual Trust bank. They always try keeping full concentration on their HR duties.

The recruitment, selection training development and the performance appraisal of Mutual Trust bank plays a vital role for them. It assists MTB to obtain and retain the effective and efficient employees. The process also conductive to the achievement of the objective of the HRM department, assist the effective performance of other functional department of the organization and as well as contribute to overall organizational broad objective.

MTBL recognizes that they have direct responsibility for the impact of their activities on their employees, suppliers, customers and the communities in which MTBL operate. They work to protect human rights in their own operations through their internal policies and procedures. Their policies also ensure that human rights are taken into account in procurement and lending decisions.

Despite MTBL provide modern Training and development facility. There are avenues where some improvement can be done. The points I already discussed before on the recommendation part of my report which may be considered by MTBL this will definitely play vital role to help them to reach the pick and achieve both their mission and vision.

I have tried my best to make this report a successful one. But despite my wholehearted effort, I could not make it a full-proof and 100% accurate report due to some limitations, constraints, lack of my experience, inaccessibility to the official rules and papers, non cooperation from few firms, short time of only three months and other factors I discussed before.

The study “A study of the performance of Mutual Trust Bank with Special emphasis on Training & Development” under HRD revealed that people are most valuable resources for the progress of the organization. For the development of these valuable resources there are many factors involved. To increase the productivity of an organization effective, dynamic training and development procedure is essential.