Credit management policy of Mutual Trust Bank Limited

Abstract

Completion a BBA program requires an internship report and this report was originated for this cause. Based on my three months internship experience in Mutual Trust Bank this report was prepared. This is an orientation report that contains the real life day to day working experience of different tasks in Credit Department of Mutual Trust Bank Limited, Mohammadpur Branch. Mutual Trust Bank Ltd, (MTB) is a pioneer and leading private bank in Bangladesh. To serve the nation Mutual Trust bank performs some activities for their clients like: general banking, loan and advance, capital market operation etc. Bank collects deposit from public and provide it‟s to other business or individual as loan. Bank pays interest to deposit holder and take interest from borrowers. Mutual Trust bank measure all risk components before sanctioning a loan. When all the formalities completed then respective officer disburse the loan. After disburse the loan it is duty of bank to recover the disbursed loan. This report is based on actual information and working procedure practiced in MTB. The overall credit management of MTB has analysed to give a clean idea about the policy of MTB and implementation of that policy by various mechanism and process. The objective of this study is to analyse the credit policy, rules and regulation of credit management and evaluation of the product performance in order to identify the major problems regarding the credit management. The first section of this report consists of an introductory part of this report, which has been developed for the proper execution of the entire report. In the second part, a brief description about the host organization of my internship, Mutual Trust Bank Limited, has been given. In the third part of this report consist of the theoretical aspects. In part four consists of some information about credit, its usefulness and credit management policy of Mutual Trust Bank. The remaining part consist the analysis, findings, recommendations and conclusion. To prepare this report both primary and secondary sources of data have been used. Mutual Trust Bank credit policy is quite lengthy. In year 2013 the non-performing loan is 2.28% which is less than other banks. Banks credit deposit ratio is increasing from previous year. That means bank can invest properly and utilize more funds to maximize their profit. Capital adequacy ratio is in good position that indicates bank has enough capital and efficiency to serve their banking service. Disbursement of loan and advances are increasing year by year. On the basis of findings v it can be recommended for betterment that their loan sanctioning procedure should be less time consuming and monitoring should be stricter.