Mutual Trust Bank Limited

Mutual Trust Bank Limited (MTB) a commercial bank in the private sector. It started banking operation on 24 October in 1999. Initially, the Authorized capital and paid-up capital of the bank were 1000 million and 200 million taka respectively. By the end of 2019, the authorized capital and paid-up capital rose to 10000 and 7386 million takas. Presently it has 118 branches and 11 SME centers. The total staffs and officers of the bank were 2362 in 2019. The power of policy-making of the bank lay down on an 8-member Board of Directors. Managing Director as an Executive Chief manages all activities, who is assisted by three Deputy-managing Directors and three higher Executive Officers? The bank has stretched its financing operation through the introducing of SME programme for aiming of decreasing risk of debt and for expanding multiplication of its lending activities. For poverty reduction, Mutual Trust Bank prefers SME banking to generate a huge number of job opportunities. It observed 2008 as SME Year.

Basic Facts and Economic Indicators (In Million Taka)

Indicators	2018	2019	2020
Authorized Capital	10000	10000	10000
Paid up Capital	5734	7035	7386
Reserved Fund	7610	9630	9440
Deposits	166160	191369	190607
a) Call Deposits	18337	20684	24461
b) Term Deposits	147823	170685	166146
Loans and Advances	166145	186769	200992
Investment	27388	33195	35382
Total Asset	222406	256157	267913
Total Income	20265	23881	21276
Total Expenditure	15381	18769	17953
Foreign Currency Trading	225888	232479	197826
a) Export	60061	64318	57828
b) Import	117918	119002	102400
c) Remittance	47909	49159	37598
Total manpower	2120	2340	2362
a) Officers	2100	2314	2337
b) Staff	20	26	25
Correspondent Banks	602	604	547
Total Branches (in numbers)	114	118	118
a) Domestic	114	118	118
b) Overseas	0	0	0
Agriculture Credit
Loan Disbursed	1562	3190	3644
Realised	4005	1748	4433
Industrial Credit
Loan Disbursed	108968	142552	72783
Realsied	83962	116039	94309
Loan Outstanding by Sector
Agriculture and Fisheries and Forestry	1339	2781	3509
Industry	45607	56369	50366
Trade and Commerce	25837	34256	69694
Poverty Reduction	0	0	0
CSR	80	53	201

Source Government of Bangladesh, Ministry of Finance, Banking and Financial Institution Division, Barshik Protibedon [Annual Report on Banks and Financial Institutions], 2019-20 and 2020-21.

MTB has a strong representative banking network with 547 banks all over the world. It conducts swift Relation Management Application (RMA) with 379 popular banks of the world, out of which 42 was local and 311 foreign banks. The MTB established an MTB Remittance Arrangement which compromises of few exchange houses for collecting remittance in convenience of Bangladeshi wage earners lived in abroad to send their money.

Mutual Trust Bank endows with various facilities to customers including debt, credit and pre-paid card. At present, the bank offers 7 types of cards like debt card, remittance card (pre-paid), classic card, gold credit card, international credit card, international travel card and hajj card. The customers can easily draw money, shopping and traveling using these cards in home and abroad.

The bank has been ensured its existence in the capital market as a full Services Depository participant of CDBL and member of Dhaka Stock exchange. Right now, MTB provides brokerage house facilities in the branch of Motijheel, Gulshan, Pallabi, Uttara and a branch of Chittagong. According to the Margin Rules 1999, Mutual Trust Bank has already started to distribute loan to the customers.

In 2019, bank deposits accounted for 1.5 per cent of total banking sector deposits and loans and advances accounted for 1.7 per cent of total banking sector loans and advances. The average interest rate differential between June 2019 based deposits and loans and advances was 4.1 percent. [Muhammad Abdul Mazid]