Financial Statement Analysis of Mutual Trust Bank

Ltd.
An internship report submitted to the Department of Business Administration,
Dhaka International University, for partial fulfillment of B.B.A. degree.

Submitted By
Md. Shahiraj Shaon
Roll No: 29
Reg. No-242799
BBA Major: Finance & Banking
Batch- 40th/B
Session: 2012-2013
Department of Business Administration
Dhaka International University

Under the supervision of

Tarana Tabassum
Lecturer
Department of Business Administration
Dhaka International University

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 Letter of Transmittal
25th November, 2016

To
Tarana Tabasussm
Lecturer
Department of Business Administration
Dhaka International University

Subject: Submission of internship report on “Financial Statement Analysis of

Mutual Trust Bank Ltd.”

Dear Madam,
I am glad to submit you the Internship Report covering the topic “Financial Statement
Analysis of Mutual Trust Bank Ltd.” This report is an integral part of the completion of
the BBA program. For preparing this report I have tried my level best to accumulate
relevant and up-to-date information from all available sources. In completing the report I
have tried my best in imparting every available details of the Bank avoiding unnecessary
amplification of the report.

I hope that this report will meet the standards of your judgments.

Sincerely Yours,

-----------------------
Md. Shahiraj Shaon
Roll No: 29
Reg. No-242799
BBA Major: Finance & Banking
Batch- 40th/B
Session: 2012-2013
Department of Business Administration
Dhaka International University

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 Recommendation by Supervisor

This is to certify that the internship report on “Financial Statement Analysis of Mutual
Trust Bank Ltd.” has been carried out by Md. Shahiraj Shaon, Roll No: 29, major in
Finance & Banking from Dhaka International University for the partial fulfillment of
Bachelor of Business Administration (BBA) degree under my supervision. I permit to
submit this report for the further necessary action.

I wish him every success in life.

--------------------------------
Tarana Tabassum
Lecturer
Department of Business Administration
Faculty of Business Studies
Dhaka International University

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 Declaration of Authenticity

I am Md. Shahiraj Shaon, student of B.B.A., at Dhaka International University, hereby

declare that the internship report titled “Financial Statement Analysis of Mutual Trust
Bank Limited.” has been authentically prepared by me after the completion of
internship at Mutual Trust Bank Ltd. Tongi Branch and submitted by me to Dhaka
International University.

I also declares that the internship report is prepared for an academic purpose, alone.

-------------------------------
Md. Shahiraj Shaon
Roll No: 29
Reg. No-242799
BBA Major: Finance & Banking
Batch- 40th/B
Session: 2012-2013
Department of Business Administration
Dhaka International University

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 Acknowledgement

First I would like to thank almighty Allah for giving me the ability to complete this
report. Then I would like to take opportunity to express my gratitude to my honorable
supervisor Tarana Tabassum, Lecturer, Department of Business Administration, Faculty
of Business Studies, Dhaka International University for giving guidelines and suggestions
to complete the report.

I would like express my gratitude to all officials of Mutual Trust Bank Limited. for giving
me the opportunity as an intern at the bank. I also express thanks to the manager, and all
staff of the Tongi Branch. They influenced and suggested me to know and make
understand the banking activities for my future career opportunity.

Her suggestions were really a great source of spirit to make the report good one. At last, I
shall be grateful to those persons who will read this report and who shall get benefit from
this report at present and in future. Practical experience and situation can give the proper
knowledge of total environment. My report will be the greater example of that.

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 Executive Summary

Mutual Trust Bank Limited (MTBL) is a Public Limited Company by shares in the
Bangladesh, with commendable operating performance. The title of this report is
Financial Statement Analysis of Mutual Trust Bank Ltd. The objectives of this report are:
The General Objective are: To analyze the financial statement of Mutual Trust Bank of
the year To know Assessment of past performance and current position, To know
Prediction of net income and growth prospects, To know Prediction of bankruptcy and
failure, To apply theoretical knowledge in the practical field. To Analysis the income
statement. In order to generate this report both primary data and secondary data have been
used. The sources that have been used to gather and collect data is given below-Primary
Sources: Direct observations, Practical desk work. Secondary sources: Annual report of
Mutual Trust Bank Limited (2011-2015). Visit web site of MTBL. Different written
document of Mutual Trust Bank Limited. Published or unpublished or personally
collected data from officers, Local officers and Head office of the Mutual Trust Bank
Limited. Different journal regarding Mutual Trust banking. The average growth rate of
assets is 13.4% where the growth rate in 2014 is 23.1%, which is almost double of the
average rate. The higher growth of total assets is due to higher growth of loans and
advances. The trend of investments is much volatile over the years. In 2012 and 2014
there were growth but in other three years there were negative growth. In 2014 MTBL
registered a steady growth in the credit portfolio posting a growth of 6.22 percent. Total
loans and advances of the bank stood at Tk 39,451. 4 million during the year 2014
compared to Tk 37,141.3 million of the previous year. In June 2015 Loans and Advances
is 40,890.33 million. The loans and advances were increasing over the years. The growth
rate was highest in 2013, which was 30%. However, in the following year it became the
lowest that was 6%.There should be more efficient capital management and investment
analysts appointed so that idle money does not remain in the bank. They should update
the information in the website in a regular basis. MTBL should increase the space in the
branch offices as their client size is increasing day by day and also introduce new
branches in various places of the country for expansion. The managers should be sent to
different training programs on a regular basis to improve their knowledge base which
would help them to improve their efficiency. Management should be more decentralized
to provide faster services to the clients. In order to remain as the market leading company
they should emphasize much on retain the existing customer base and also should try to
attract new customers.

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 Table of Contents
Name of Topics Page No:
Title page i
Letter of Transmittal ii
Recommendation by Supervisor iii
Declaration of Authenticity iv
Acknowledgement v
Executive Summary vi
Chapter- ONE 01-04
Introduction
1.1 Introduction 02
1.2 Background of the Study 03
1.3 Objectives of the Study (Broad and Specific) 03
1.4 Statement of the Research Problem 03
1.4 Significance of the Study 04
1.5 Scope of the Study 04
1.6 Limitations of the Study 04
Chapter- TWO 05-06
Methodology
2.1 Methodology of the Study 06
2.1.1 Primary Sources 06
2.1.2 Secondary sources 06
2.2 Sampling Plan 06
2.2.1 Study population 06
2.2.2Sampling strategy 06
2.2.3 Sampling Size 06
2.3 Questionnaire 06
2.4 Data analysis 06
Chapter- THREE 07-16
Organizational Profile of MTBL
3.1 Company Profile 08
3.2 Objective of Mutual Trust Bank Ltd 09
3.3 Mission and Vision 09
3.4 Structure 09
3.5 Management 10
3.6 Services 10
3.6.1 Consumer Banking 10
3.6.2 Foreign Trade 10
3.6.3 Import Business 11

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3.6.4 Export Business 11
3.6.5 Remittance 11
3.7 Correspondent Banking 11
3.8 Remittance Services 12
3.9 SWIFT 12
3.10. Products of MTBL 12
3.10.1 Deposit Products 12
3.10.2 Loan Products 13
3.10.3 Visa Card 13
3.11MTBL’s Risk Management Strategy and System 13-14
3.12 Organogram of MTBL 15
3.13 SWOT Analysis 16
Chapter- FOUR 17-33
Findings Analysis and Results
4.1 Analysis of income statement (6 years) 18-19
4.2 Analysis of other ratio (6 years) 20-29
4.3 Financial Statement 30
4.3.1 Balance Sheet 30-31
4.4 Chas flow Statement 32
4.5 Findings 33
Chapter- FIVE 34-37
Conclusion & Recommendations
5.1 Conclusion 35
5.2 Recommendations 36
References 37

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 An Internship Report
On
Financial Statement Analysis of Mutual Trust Bank
Ltd.

Submitted by:
Md. Shahiraj Shaon
Roll No: 29
Reg. No-242799
BBA Major: Finance & Banking
Batch- 40th/B
Session: 2012-2013
Department of Business Administration
Dhaka International University

Submitted to:
Department of Business Administration
Dhaka International University

Under the supervision of

Tarana Tabassum
Lecturer
Department of Business Administration
Dhaka International University

Date of Submission: 25th November, 2016

ix