General Banking of Mutual Trust Bank Limited

Major objective of this report is to analysis general banking Activities of Mutual Trust Bank Limited, Shanir Akhra Branch and also about their services and rates which is different in different situation in general banking. By this analysis get a clear scenario about the various Scheme of Mutual Trust Bank and find out the different types rates. Finally find the problems regarding the general banking and provide possible solution.

Objectives:

Broad Objectives:

A broad objective is to find out the general banking Activities of Mutual Trust Bank ltd and also about their services and rates which is different in different situation.

Specific Objectives:

1. To know the banking environment the Mutual Trust bank at Shanir Akhra Branch
2. To get a clear scenario about the various Scheme of MTBL.
3. To find out the different types rates.
4. To find out the different types condition
5. To find the problems regarding the general banking and provide possible solution

Historical Background:

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.

The Company (Bank) operates through its Head Office at Dhaka and 49 branches and 5 SME Service Centers. The Company/Bank carries out international business through a Global Network of Foreign Correspondent Banks.

• Investment in Merchant Banking Activities.
• Investment in Company Activities.
• Financiers, Promoters, Capitalists etc.
•  Financial Intermediary Services.
• Any related Financial Services.

Promoters:

Mutual Trust Bank Ltd. is organized by number of reputed business & industrial groups of the country say, Apex Group, Square Group, Bashundhara Group, ACI Ltd., ABC Ltd., Sahco Ltd. etc. Mr. Manzur Elahi is the founder Chairman of the bank. He is one of the experienced industrialist in the country and distinguished ex-cabinet members of earlier caretaker government. He is representing Apex Group. Mr. Samson H. Chowdhury is the Vice-Chairman of the bank. Mr. Chowdhury is the Chairman of Square Group. Square Group is known in the country due to its leading role in pharmaceuticals sector since long. Other directors of the bank are also well known in the business community for their business means.

Network:

Despite the bank started with its principal branch in the inaugural day presently it has opened 3 new more branches within Dhaka and Chittagong. Out of 4 branches 3 branches are in Dhaka and rest one is in Chittagong. In near future Mutual Trust Bank Ltd. is going to open new more branches in potential business areas including its rural branch/s. May be mentioned private commercial banks are to open at least one rural branch against five of its branches in conformity with Bangladesh Bank norms.

Banking Services and Products:

Mutual Trust Bank provides the following services and financial products:

Consumer Banking:

We aim to satisfy all clients, regardless of how big or small they may be. Individuals are counseled on the best type of accounts suitable to them such as Current, Savings, Short Term Deposits, Fixed Deposits, Consumer Asset and Liability Products, etc.

MTBL Products Are:

SME Banking Products:

1. Small Business Loan.
2. MTB Krishi.
3. MTB Mousumi.
4. MTB Bhaggaboti.
5. MTB Digoon.
6. MTB Revolving Loan
7. MTB Green Energy Loan.
8. Micro Finance Scheme.
9. MTB Green Energy Loan.
10. Micro Finance Scheme.

MTB Consumer Loans:

1. MTB Life Line.
2. Home Loan Scheme.
3. Home Repair Loan.
4. Home Loan.
5. Auto Loan.
6. Doctors Loan.

MTB Services:

1. Corporate Banking.
2. Institutional Banking.
3. Off-Shore Banking.
4. Investment Banking.
5. Merchant Banking.
6. Securities Trading and Brokerage Service.
7. SME Banking.
8. Consumer Banking.
9. Card Services.
10. Services Non Resident Bangladesh (NRBs).

MTB Deposit Schemes:

1. Monthly Benefit Plan.
2. Save Every Day Plan.
3. Children Education Plan.
4. Brick By Brick

E- Banking:

1. Local Gold Credit Card
2. International Credit Card
3. Visa Electron Debit Card
4. International Travel Card
5. Visa Remittance Card
6. MTB Tele Banking
7. MTB Hajj Banking
8. Swift Services
9. Local Classic Credit Card

General Banking:

Financial institution/ intermediary that mediates or stands between ultimate borrowers and ultimate lenders is knows as banking financial institution. Banks perform this function in two ways- taking deposits from various areas in different forms and lending that accumulated amount of money to the potential investors in others.

General Banking is the starting point of all the banking operating. General Banking department aids in taking deposits and simultaneously provides some ancillaries services. It provides those customers who come frequently and those customers who come one time in banking for enjoying ancillary services. In some general banking activities, there is no relation between banker and customers who will take only one service form Bank. On the other hand, there are some customers with who bank are doing its business frequently. It is the department, which provides day-to-day services to the customers. Everyday it receives deposits from the customers and meets their demand for cash by honoring cheques. It opens new accounts, demit funds, issue bank drafts and pay orders etc. since bank in confined to provide the service everyday general banking is also known as retail banking.

Scope of General Banking: –

1. Customer Service.
2. Account Opening.
3. Remittance.
4. Payment Order.
5. Demand Draft.
6. T.T.
7. IBC/ OBC Collection.
8. Deposit Department.
9. Account’s Department.
10. Clearing Transfer.
11. Cash.
12. Loan and Advance.

Customer Services of Mutual Trust Bank :

Professional merit and Competency, Flexibility, Determination and Dedication are the core resources that MTBL consider to be of paramount importance for building a client oriented modern banking. Customer satisfaction is MTBL foremost professional undertaking. Therefore, a satisfied client is MTBL precious product and they consider them MTBL ambassador in the market.

Account Opening of MTBL:

Under this department, MTBL officer opens different types of account on the request of clients. The procedure of opening account is given bellow:

Types of Accounts:

General Products are

Current Deposit:
1. Individual Account
2. Joint Account
3. Proprietorship Account
4. Limited Company Account

Savings Deposits:

1. Individual Account
2. Joint Account
3. Proprietor Ship Account
4. Limited Company Account

Short Term Deposits:
1.  Individual Account
2. Joint Account
3. Proprietor Ship Account
4. Limited Company Account

Fixed Deposits:

Fixed deposit is one, which is repayable after the expiry of a predetermined period fixed by him. The period varies form 1 month to 12 months. These deposits are not repayable on demand but they are withdraw able subject to a period of notice. Hence, it is a popularly known as ‘Time Deposit’ or ‘Time Liabilities”. Normally the money on a fixed deposit is not repayable before the expiry of a fixed period.

Before opening a Fixed Deposit Account a customer has to fill up an application form which contains the followings:

1. Amounting figures
2. Beneficiary’s name and address
3. Period
4. Rate of interest
5. Date of issue
6. Date of maturity
7. Instructions:
8. Special instruction
9. How the account will be operated (singly or jointly)
10. Signatures
11. FDR no.

Then a FDR account is opened and it is recorded in the FDR Register which contains the following information,-

1. FDRA /C no.
2. FDR (Fixed Deposit Receipt) no.
3. Name of the FDR Holder with address
4. Maturity period
5. Maturity date
6. Interest rate

Brief of MTBL Consumer Products:

1. Brick by Brick Savings Scheme
2. Monthly Benefit Plan
3. Save Everyday Plan
4. Children’s Education Plan
5. Consumer Credit Scheme
6. Best Invest Plan

Brick by Brick Savings Scheme:

Drops of water make an ocean. Your habit of regular savings will provide you comfort in the future. Brick by Brick is a unique monthly savings plan which builds up over the years and provides a lump sum amount at maturity.

We will have to open an account in the bank from which a standing instruction will be given to transfer the monthly deposit in the scheme’s account and you must ensure that your account has sufficient balance within the 20th of each month.

This plan is so flexible that at maturity you can earn a handsome amount depending on the size of installment amount of savings and tenure.

Monthly Benefit Plan:

This plan offers you to generate monthly income out of your deposit. It has been designed to help and assist conscious savers from all strata of the society. The minimum deposit is Tk. 50,000/= or in multiples thereof. There is no upper limit and this plan is for a 3 (three) & 5 (five) years term that cannot be changed subsequently.

You will require opening a savings/current account. Monthly income will be credited to your account.

A few examples of deposit and income are given below:

Save Everyday Plan:

Saving money for the future is a common practice in any society. Savings help you to build a better tomorrow. Regular saving makes a man become disciplined, self confident successful.

Mutual Trust Bank offers you “Save Everyday” Plan. The primary advantage of this plan is that you are absolutely free to choose your own time for depositing money into this account. You can deposit daily, weekly or monthly. The choice is yours, but the transactions will have to be within the Bank’s transaction hour.

This is a 5 year plan and you will be required to open the account with an initial deposit of Tk. 2500/= only. We offer you very attractive interest rate which is accrued in this account on a daily basis.

Children Education Plan:

Education is the backbone of any nation and one of the primary factors of prosperity. An educated nation stands tall in the committee of nations and deserves respect. A child’s education is of prime importance and every parent should ensure and make every effort to get their child educated.

To admit a child in a good institution parents require adequate amount of savings for the cost of admission into a school. This plan allows new parents to save for 4/7/9/12 years.

The parent can deposit any amount of money at any day of the month. The interest rate is very lucrative and we offer substantially more than the prevailing savings rate.

Consumer Credit Scheme:

In order to make a significant contribution in the living standards of the people of medium and low income category, Mutual Trust Bank has introduced a scheme called “Consumer Loan Scheme”.

With a view to materialize the dreams of those who are unable to make one time investment from their own savings, one can now afford to buy necessary household equipments and thus improve the standard of living.

All shot of household durables e.g. Television, Refrigerators, Computers, Air Conditioners, Video Cameras, Washing/ Drying Machines and Furniture’s are allowed under this scheme. One can buy Motorcycle too under this programme.

Best Invest:

Best Invest offers you efficient high return investment plan. This plan helps you to build up

A sizeable income in easy and affordable installments. This plan allows you to own 5 times the initial invested amount. Best Invest offers two separate and convenient term deposit periods for 4 years and 6 years respectively. Best Invest is available in units worth Tk.50, 000/- each. You will invest Tk.10, 000/- as down payment for purchasing 1 (one) unit and the Bank will provide loan for Tk.40, 000/-. The customer also has the option to buy units in multiples of Tk. 50,000/- but maximum

Up to Tk. 1, 00, 00,000/- (one crore).

Customized Products:

MTB Double Saver Plan:

MTB Double Saver Plan offers you an one time savings scheme, which will provide you double the amount of your deposit after 6.5 years. You will receive a handsome amount at maturity.

If you are an individual or if your institution is an NGO or an Educational institution or a Trust or Society or any other institution, you may invest your savings in this scheme with a minimum deposit of Tk. 10,000/- for 6.5 years with no limit for maximum amount. At maturity you will get double of your deposited amount along with a gift item.

You can even avail loan up to 90% of the deposited amount.

MTB Triple Saver Plan:

MTB Triple Saver Plan offers you an one time savings scheme, which will provide you three times of your deposit after ten (10) years. You will receive a big amount at maturity.

If you are an individual or if your institution is an NGO or an Educational institution or a Trust or Society or any other institution, you may invest your savings in this scheme with a minimum deposit of Tk. 10,000/- for ten (10) years with no limit for maximum amount. At maturity you will get three times of your deposited amount along with a gift item.

Account holders can even avail loan up to 90% of the deposited amount.

Millionaire Plan:

Millionaire Plan is a monthly savings plan, which is designed to make you a millionaire in a few years. An individual may invest your savings in this scheme for 6/8/10/12/15/20 years with different installment sizes. At maturity you will get Tk. 10, 00,000/-.

You can even avail loan up to 90% of the deposited amount after 1(one year).

Unique Savings Plan:

Unique Savings Plan is an any day, any amount savings plan. The beauty of this plan is that a customer can deposit any day, any time and any amount. Unique Savings Plan offers you to deposit any amount of your choice but not less than Tk. 500/- for 3/4/5 years. This is a high income plan with withdrawal facilities. The withdrawal facility will help at the time of any emergency. Account holder can withdraw 50% of the deposited balance for once a month. At maturity you will get a handsome amount.

Small Business:

With the objective of extending financial support to small businessmen, this loan scheme has been introduced. It has been designed to get business loans on easy terms and without any hassle. Only the genuine businessmen having entrepreneurship quality and honesty to run and expand their business smoothly.

• Maximum loan under the scheme will be up to Tk. 50 lac.
• No collateral security is required up to Tk. 5 lac.
• Collateral security is required for loan above 5 lac.

Home Loan Scheme:                                   

Home Loan Scheme has been introduced to facilitate people to fulfill their dream of a home of their own. It has been designed o help people to get home loans on easy terms and without any hassle.

• Loan amount under this scheme is maximum Tk. 50 lac. Salaried executives, professionals, businessmen and govt. officials are eligible to avail this loan scheme.
• The loan is to be repaid by monthly equal installments including interest within the period ranging from 5 years to 15 years depending on the size of loan.

Home Repair/ Renovation Loan Scheme:

Home Repair/ Renovation Loan Scheme has been designed with a view to help the owners of house/ building/ flat to mitigate their financial need for repair/ renovation of their house/ building/ flat.

Only the genuine residential house owners will be eligible to avail the loan facilities to repair or renovate their own house/ building/ flats according to their needs.

• Maximum loan under the scheme will be up to Tk. 5.00 lac.

• The loan is to be repaid by monthly equal installments including interest within maximum 60 months.

Auto Scheme:

To own a car is everyone’s dream as well as a part of today’s living, which enhances standard and quality of life. Auto Loan scheme has been designed to help materialize your long cherished dream of a car of your own.

Purchase of new/ reconditioned cars is allowed under this scheme. Salaried executives, professionals, businessmen, govt. officials or self employed persons are eligible to avail this loan. Loan amount under this scheme is 70% of car value but maximum of Tk. 20 lac.

MTBL Other Service:

SWIFT Services:

Mutual Trust Bank has already become the member of SWIFT community and has started its operation from March 2004. With introduction of SWIFT, MTB ensures its customers the quickest and most secured financial transaction around the world.
The SWIFT address or BIC of Mutual Trust Bank is: MTBL BD DH

MTB Tele Banking:

The centralized Tele Banking service introduced in the Bank brings a world of banking convenience to the customers. The facility is secure as the customer is given a unique identification number to access his bank account through the telephone. The voice response system prompts the customer to dial the digits that will help him/ her meet his requirement of placing instructions or retrieving account information.

This value added service is offered absolutely free.  Registration is mandatory for Tele Banking. For registration you have to visit your bank branch.

Online Banking:

Mutual Trust Bank is playing a pioneering role among its competitors in providing real time online banking facilities to its customers. Mutual Trust Bank online banking offers a customer to deposit or withdraw any sum of money from any branch anywhere. Any account holder having a checking account with the bank can avail this service.

Correspondent Banking:

The objective of our correspondent banking operations is to strengthen our existing relationships with foreign banks and financial institutions around the globe as well as exploring new relationships. In addition to that, we provide assistance in marketing the products of the correspondent banks. At present MTB is maintaining relationships with 30 (thirty) foreign correspondents and the number is growing everyday.

Procedure of Account Opening:

Account Opening (Normal Account):

1. Collect an Account opening form from the Bank.
2. Fill all the requirements of the form.
3. Nominee is must be specified.
4. Photograph is most important for any account.
5. The account holder sign of his/her own self in front or the specific bank principle Officer in the account opening form.

Account Opening (Saving Account):

1 Collect Account openings form from the Bank.
2. Fill all the requirements of the form.
3. Nominee is must be specified.
4. Photograph is most important for any account.
5. The account holder sign of his/her own self in front or the specific bank principle Officer in the account opening form.

Account Opening (Current Deposit Account):

1. Collect an Account opening form from the Bank.
2. Fill all the requirements of the form.
3.  Nominee is must be specified.
4. Photograph is most important for any account.
5. To open this account the most important things is that Passport Photocopy or the Word Commissioner Certificate must have to add with the account opening form and also enclose the form 12 with the account opening form.

Interest Posting to Client’s Account:
Bangladesh Government has circulated that, 10% deduction from the Bank’s Internal Account’s. This 10% tax deduction from the client’s interest.

Other wise another circulation is that, from the OBC collection every bank cut off there OBC commission as income account, here Bangladesh Bank said that 15% money cut off from the OBC collection as Vat on Others.

Cheque Book Issues:

Types of Cheque Book’s:

1. Savings Account
2. Current Deposit Account

Cheque Issued By Using Two Types of Slips:

1. Direct requisition slips
2. Cheque Book’s requisition slip

Customers Service Officer receives these types of slip from the client’s and gives the cheque books under processing. Processing means Cheque Book’s collect from the VOLT and the put account number in the cheque book, write down the serial number of the cheque book in the requisition slip and cheque book register, then Verified client signature. After all this things the Principal officer sign in the cheque leaves and sent the cheque book to another Principal officer for sign, after his sign the client receive the cheque book. These things the Principal Officer for sign, after his sign the client receive the cheque book. Then Principal Officer posting that cheque books leaves number in the computer data processing system.

Account Closing:

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 Case of Different Types of A/C to Close :

1. Fixed deposit A/C is closed after the termination of the period.
2. 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.
3. 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:

1. After receiving customer’s application the officer verifies the balance of the A/C.
2. He then calculates interest and other charges accumulated on the A/C.
3. If it bears a credit balance, the officer writes advice voucher. He gives necessary Accounting entries post to accounts section.
4. The balance is returned to the customer. And lastly the A/C is closed.

Remittance:

Remittance of funds is ancillary services of MTBL. It aids to remit fund from one place to another place on behalf of its customers as well as non- customers of Bank. MTBL has its branches in the major cities of the country and therefore, it serves as one of the best mediums for remittance of funds from one place to another. The main instruments used by MTBL, Dilkusha Branch for remittance of funds.

1. Payment Order Issue/Collection
2. Issuing of pay order
3. Demand draft issue
4.  Issuing of Duplicate DD
5. Issue/ collection
6. Issuing of TT
7. IBC/OBC Collection.

Payment Order Issue/Collection:

The pay order is an instrument issued by bank, instructing itself a certain amount of money mentioned in the instrument taking amount of money and commission when it is presented in bank. Only the branch of the bank that has issued it will make the payment of pay order.

Issuing of Pay Order:

The procedures for issuing a Pay Order are as follows:

1. Deposit money by the customer along with application form.
2. Give necessary entry in the bills payable (Pay Order) register where payee’s name, date, PO no, etc is mentioned.
3. Prepared the instrument.
4. After scrutinizing and approval of the instrument by the authority, it is delivered to customer. Signature of customer is taken on the counterpart.

Demand Draft Issue/Collection:

The person intending to remit the money through a Demand Draft (DD) has to deposit the money to be remitted with the commission which the banker charges for its services. The amount of commission depends on the amount to be remitted. On issue of the DD, the remitter does not remain a party to the instrument: i) Drawer branch ii) Drawee branch iii) Payee. This is treated as the current liability of the bank as the banker on the presentation of the instrument should pay the money. The banker event on receiving instructions from the remitter cannot stop the payment of the instrument. Stop payment can be done in the following cases:

1. Loss of draft before endorsement: In this case, “Draft reported to be lost, payee’s endorsement requires verification” is marked.
2. Loss of draft after endorsement: In this case, the branch first satisfies itself about the claimant and the endorsement in his favor.

Issuing of Duplicate DD:

If the customer wants to issue a duplicate DD, than customer is asked to do the following formalities:

1. Making a general diary (GD) in the nearest Police Station.
2. Furnishing an Indemnity Bond in Tk.50/= stamp

The banker immediately marks “stop payment” in the register after receiving the application from the customer and a duplicate DD is issued.

Issue/ Collection:

Telex transfer (TT) is another widely used mode for remittances of funds. In case of telex transfer the message for transfer of funds is communicated through tested telex. MTBL generally recovers from the telex charges in addition to the usual service charges.

Issuing of TT:

MTBL follows the following procedures:

1. The customer deposits money with MTBL to be sent.
2. The customer obtains a cash memo containing TT serial number.
3. TT serial number, notifying part name is mentioned in the telex message.
4. The Telex Department confirms transmission of the telex.

IBC/OBC:

By OBC, we mean that those cheques drawn on other banks which are not within the same clearing house. 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 cheques has been presented to credit the customer account through Inter Branch Credit Advice (IBCA).

In absence of the branch of the same bank, officer sends letter to manager of the bank on which the cheques is drawn. That bank will send pay order in the name of the branch. This is the procedure of OBC mechanism.

Actually OBC comes from the out side bank’s branch, or inter branches. Suppose AGRANI Bank, Jatrabari Branch sent a Cheque, which no: 012536, Tk. 5, 00,000/- to Mutual Trust Bank Limited against AGRANI Bank Motijheel Corp. Branch. So this cheque could be an OBC. Now what Mutual Trust Bank Limited has to do? MTBL tries to collect this cheque through Bangladesh Bank Clearing House, and credited clients account.

Accounts Department:

Accounts Department is play most vital role in Banking. Accounts Department is a department with which each and every department is related. It records the profit & loss A/C and statement of assets and liabilities by applying “Golden Rules” of book-keeping.

Basically Accounts Department is not alone. Accounts department is a mix of as follows:

• Cash
• Transfer
• Clearing

Cash:

The cash section of any branch plays very significant role in Accounts Department. Because, it deals with most liquid assets the MTBL   has an equipped cash section. This section receives cash from depositors and pay cash against cheque, draft, PO, and pay in slip over the counter. Every Bank must have a cash counter where customer withdrawn and deposit there money. When the valued client’s deposit their money at the cash counter they must have to full fill the deposit slip his/her own, then they sing as the depositor option’s then they deposit their money through cash officer at the cash counter.

Receiving Cash:

Any people who want to deposit money will fill up the deposit slip and give the form along with the money to the cash officer over the counter. The cash officer counts the cash and compares with the figure written in the deposit slip. Then he put his signature on the slip along with the ‘cash received’ seal and records in the cash receive register book against A/C number. At the end of the procedure, the cash officer passes the deposit slip to the counter section for posting purpose and delivers duplicate slip to the clients.

Disbursing Cash:
The drawn who wants to receive money against cheque comes to the payment counter and presents his cheque to the officer. He verifies the following information:

1. Date of the cheque
2. Signature of the A/C holder
3. Material alteration
4. Whether the cheque is crossed or not
5. Whether the cheque is endorsed or not
6. Whether the amount in figure and in word correspondent or not

Then he checks the cheque from computer for further verification. Here the following information is checked:

1. Whether there is sufficient balance or not
2. Whether there is stop payment instruction or not
3. Whether there is any legal obstruction (Garnishee Order) or not

After checking everything, if all are in order the cash officer gives amount to the holder and records in the paid register.

The cash section of MTBL deals with all types of negotiable instruments, cash and other instruments and treated as a sensitive section of the bank. It includes the vault which is used as the store of cash instruments. The vault is insured up to Tk. 1 corer. If the cash stock goes beyond this limit, the excess cash is then transferred to

Principle Branch Office. When the excess cash is transferred to MTBL Principle Branch Office the cash officer issues IBDA. When cash is brought from MTBL Principle Branch Office.

Transfer:

Transfer is not a critical sector in banking but it is very important. Transfers play a vital role in banking sector. So now we have to know what transfer is basically transfer is a type of register maintaining matter. In this register officer write down every day transactions in Debit and Credit side then the officer calculate both the side of the register if both side shown same amount.

Clearing:

Clearing is one of the magical parts of banking.

Clearinghouse:
In Bangladesh Bank, there is a very large room, which contains fifty (50) or more tables for each bank that is called the clearing house.

Clearing House Process:

Every bank has an officer of clearinghouse who is work with Bangladesh Bank clearing house. Actually most of major client deposit their account in different kinds of bank cheques. Clearing officer check all the cheques and deposit slip very carefully and then he received the cheque. After that the clearing officer posting all the cheques in computer software which is recognized through Bangladesh bank computer department. Then clearing officer seal all the cheques in advance date after that the officer endorsement all the cheques and sign all the cheques. All the cheques are posted in the computer by branch wise, then officer print the entire document and staple all the cheques by branch wise this is called schedule of clearing house. It is a very difficult job to staple all the cheques, because some time’s the cheques are huge in quantity, it may be 250 to 400, this is very vital job because every cheque must have to staple very carefully, it means cheque amount and the print sheet amount and cheque branch must have to be same. If the cheques staple in wrong direction, the cheque may be return from another bank, that’s why MTBL not to be able to credited party account. Then the clearinghouse officer copying the entire document in two floppy dist as per Bangladesh Bank requirement.

Extract:

Extract is a statement of all originating and responding transactions among inter–branches. Through inter branches debit and credit advice. At the end of the day, all the debit and credit advices of different department come to accounts department. It makes extract in light of all advices.

Actually extract shows the balance of MTBL Shanir Akhra Branch general A/C. The objective of preparing it is to know how many transactions have been originated and responded by the respective branch per day. Branch has to send it its Head Office keeping one photocopy.

Debit Voucher:

For making cash payment like entertainment, conveyance, Account Department writes a debit voucher. Amount is withdrawn through cash section by presenting debit voucher.

Statement of Affairs:

Accounts section prepares the statement of affairs for finding the profit /loss as well as amount of assets and liabilities of concerned branch per day. Theoretically; it is called financial statement and has two parts:

1. Income and Expenditure A/C.
2. Statement of assets & liabilities.

Amortization and Depreciation:

Amortization is the allocation of the cost of an intangible asset to expense. For example: prepaid expenditure, prepaid insurance and goodwill etc. Amortization schedule is determined by the decision of management.

Depreciation is a process of cost allocation of assets not a process assets valuation.

1. Fixed Assets have been show at written down value.
2. Depreciation is charged at the following rates on reducing balance method on all fixed assets other than motor vehicles, which are deprecated on straight-line basis:

Assets purchased during the year are depreciated from the date of acquisition.

Functions Providing By Account Department:

Like all other Banks, in MTBL Accounts Department is regarded as the nerve Center of the bank. In banking business, transactions are done every day and these transactions are to be recorded properly and systematically as the banks deal with the depositors’ money. Any deviation in proper recording may hamper public confidence and the bank has to suffer a lot otherwise. Improper recording of transactions will lead to the mismatch in the debit side and in the credit side. To avoid these mishaps, the bank provides a separate department whose function is to check the mistakes in passing vouchers or wrong entries or fraud or forgery. This department is called as Accounts Department.

The tasks of the Accounts Department may be seen in two different angles:

1. Daily Tasks.
2. Periodical Tasks

 Daily Tasks:

The routine daily tasks of the Accounts Departments are as follows —

1. Recording the daily transactions in the cashbook.
2. Recording the daily transactions in general and subsidiary ledgers.
3. Preparing the daily position of the branch comprising of deposit and cash.
4. Preparing the daily Statement of Affairs showing all the assets and liability of the branch as per General Ledger and Subsidiary Ledger separately

5. Making payment of all the expenses of the Branch.
6. Recording inters branch fund transfer and providing accounting treatment in this regard.
7. Recording of the vouchers in the Voucher Register.

Periodical Tasks:

The routine periodical tasks performed by the department are as follows:

1. Preparing the monthly salary statements for the employees.
2. Publishing the basic data of the branch.
3. Preparing the weekly position for the branch which is sent to the Head Office to maintain Cash Reserve Requirement (C.R.R).
4. Preparing the monthly position for the branch which is sent to the Head Office to maintain Statutory Liquidity Requirement (C.R.R).
5. Preparing the weekly position for the branch comprising of the break up of sector-wise deposit, credit etc.
6. Preparing the weekly position for the branch comprising of the denomination wise statement of cash in tills.

SWOT Analysis:

Not surprisingly, in the competitive arena of marketing era SWOT analysis is a must based on product, price, place and promotion of a financial institute like private bank. From the SWOT analysis we can figure out ongoing scenario of the bank. So to have a better view of the present

Internal factor

• Strength
• Weakness

External factor

• Opportunity
• Threats

(a) Strength:

1. Usage of faster Flora Banking software.
2. Good banker-customer relationship.
3. Online banking system.
4. Bangladesh Bank based Banking system.
5. Competitive profit provider comparing with other bank.
6. Strong Financial Position.

(b) Weakness:

1. Reluctance to ad campaign.
2. Existing manual vouchers.
3. Marketing policy is not well setup.
4. The bank has no own ATM booth.

(c) Opportunity:

1. Huge business area.
2. Introducing consumer credit scheme.
3. Growth of sales volume.
4. Introducing branch banking through online.
5. Develop relations and correspondence with foreign banks.

(d) Threats:

1. Competition have more attractive deposit schemes.
2. Different classic service of other banks.
3. Govt. imposes high rate of taxes and VAT.

Findings:

After this part, I think this is the most vital part for every bank in Bangladesh or any other country. Mutual Trust Bank Limited is a private commercial bank. This is most probably consumer base bank. After analyzing my work and observation I found following points:

1. Normally any person can purchase pay order, demand draft and telex transfer by depositing money and commission. But the person who wants to purchase these should have account in the bank branch. These will discourage customers to transact with bank.

2. In opening A/C some additional documents are needed as compared with theoretical record. Like trade license, member of Dhaka chamber of commerce and industry (DCCL) in Dhaka city. Again some documents are not essential practically as referred in theory. For example, the photo of the person who will open A/C, and sometime introducer.

3. There is a rule to deposit at least an amount of money in case of opening an account. But it is not strictly followed. Sometimes more money is asked from a new customer who discourages him to open an account in the bank.

4. The degree of relationship between banker and customer determines how much theory is deviated from practical work.
5. Employees are not too much customers oriented and responsive.
6. Under this department, practice strictly supports theories. There is not too much discrepancy between them. All the functions of Account Department provided by MTBL Dilkusha Branch are based on accounting theories and procedures.

7. In case of depreciation only the straight-line is to be followed.
8. Customers showed a huge dissatisfaction with current locations as MUTUAL TRUST BANK provides services from only 49 branches throughout Bangladesh.
9. In another dimension where the customers showed higher dissatisfactory was the time dimension that they have to wait to get their work done.

Recommendation:

MUTUAL TRUST BANK is one of the most flourishing Banks of Bangladesh with wide growth opportunities in the industry. The survey on the customers of MUTUAL TRUST BANK was conducted with an aim of improving the overall customer satisfaction at MUTUAL TRUST BANK. The research gave valuable insights as to where improvements were necessary to improve the quality of service.

Based on the above results, it can be said that MUTUAL TRUST should reconsider its service strategies in Bangladesh and design products and services that better satisfy customer needs and requirements. Bank should be more tactful in dealing with the customers and launch new products that fully meet customer expectations.

The following point can be recommended on the findings of survey:

1. MTBL should provide these types of customer services without opening any account.
2. Regular research should also be conducted to find out customer expectations about various service aspects.

3. I think the amount should be fixed at a level that is not altered to customer to customer.

4. The bank should focus more on existing customers in order to build strong and loyal relationship with them as the survey showed that satisfied customers more aptly or certainly recommends the bank to friends and relatives.

5. Employees training should be conducted so that they will be more professional and efficient to deal with problem customers and problematic situations.

6. Individual attention should be given to customers in order to better understand their needs and better satisfy them
7. The bank should follow some methods like MTBL expect the straight method.

8. New branches should be constructed in Dhaka city satisfying more geographic segments.
9. Should develop more counters and efficient employees to reduce the responsive for the clients.

Conclusion:

I had the opportunity to work for this banking giant during my three months internship program. I was placed at the customer service department of MUTUAL TRUST BANK, Shani Akhra Branch. During this time I got a vast opportunity to observe the overall service process of MUTUAL TRUST BANK personal banking division. I also got the scope to interact with customers directly and reveal their expectations and perceptions about the bank’s services. During my interaction with customers I felt that somewhere there are gaps between customer expectations and banks services.

So, finally I will say that this internship at MUTUAL TRUST BANK has increased my practical knowledge of Business Administration and made my BBA education more Complete and applied. I give MUTUAL TRUST BANK all my wished and regards so that it could become the leader of financial services in Bangladesh in the near Future