You are on page 1of 7


(On the Study of Overall Performance of Mercantile Bank Limited)

Mercantile Bank Limited is a bank of new generation. During the short period of time the bank is successful to position itself as a progressive and dynamic financial institution in the country. The Bank is widely acclaimed by the business community, from small entrepreneurs to large traders and industrial conglomerates, including the top rated corporate borrowers. I have chosen Mercantile Bank Ltd, to get an idea about the operational performance and the problems faced by the entrepreneurs and the bank as well. Thus by the cross study of the problems faced by entrepreneurs and the bank officials/ bank, a real picture and some remedial suggestions may come out. Finally, I expect that, from this study Private commercial banks, financial institutions, industrialists and the people in general will be benefited.

An Overview of the Banking Sector of Bangladesh:

After the independence, banking industry in Bangladesh started its journey with 6 nationalized commercial banks, 2 state owned specialized banks and 3 foreign banks. In the 1980s banking industry achieved significant expansion with the entrance of private banks. Now banks in Bangladesh are primarily to types: scheduled banks and non-scheduled banks. There are 47 scheduled banks in Bangladesh which are operated under full control and supervision of Bangladesh Bank which is empowered to do so through Bangladesh Bank Order 1972 and Bank Company Act, 1991. Now there are 4 State Owned Commercial Banks, 4 Specialized Banks, 30 Private Commercial Banks, 23 Conventional Private Banks, 7 Islami Shariah Based Commercial Banks and 9 Foreign Commercial Banks which are operating in Bangladesh.

(On the Study of Overall Performance of Mercantile Bank Limited)
An Overview of the Mercantile Bank Limited:
Mercantile Bank Limited emerged 4th generation commercial bank to provide efficient banking services and to contribute socio-economic development of the country. Mercantile Bank Limited is a scheduled private commercial bank established on May 20, 1999 under the Bank Company Act, 1991 and incorporated as a Public Limited Company under the Companies Act. 1994. The Bank commenced its operation on June 2, 1999. The company philosophy A Bank of the 21st Century has been precisely the essence of the legend of the Banks success. The Bank provides a broad range of financial services to its customers and corporate clients. The Board of Directors consists of eminent personalities from the realm of commerce and industries of the country. As per CAMEL rating of Central Bank Mercantile Bank Ltd is A rated Bank.

Objectives of the study:

To show available services of the bank. To analyze the unique features of the bank. To evaluate the effectiveness and loyalty programs in terms of profitability. To find out and evaluate the relationship of dependent variables. To identify the strength, weakness, opportunity and threats for this bank. To suggest some ways of improving the service quality that

accommodates a growing customer volume. .

Need for the study:

In my research study I am going to investigate the overall performance of MBL. The needs of the study are given below: This study will be helpful to ensure financial transparency, integrity of accounting and sustainable corporate behavior. This study will be helpful to formulate strategies and work plan. The study represents the credit deposit ratio. The study describes different types of liquidity and profitability ratios of the bank. The study also describes different types of activity and earnings ratio.

(On the Study of Overall Performance of Mercantile Bank Limited)
Scope of the study:
In this research, I took Mercantile Bank Ltd, as ground-field, the leading bank in our country. It has been operating here June 2, 1999. While going through my study; I come up with lot of scopes available. The main scope of this study is the findings regarding Mercantile Bank Ltd. services availability & techniques. Other scope of this report is the efficient management and productive techniques adopted by adopted by our planners to design our banking sector into a real effective one. But, the most important and interesting scope provided by this report is the opportunity of interacting with all the wonderful people working here. Because of the most profound and innovative production technology, the bank is already in a good position in this sector. This report may act like a guide in revealing some of the important aspects of Mercantile Bank Ltd.

Literature Review:
Once the problem is formulated, a brief of it should be written down. In this connection, a researcher should undertake extensive literature survey connected with the problem. Literature survey of my study must include: Review of different published reports that are available in the internet. Studying of Research Methodology text book written by-

1. Uma Sekaran, Research Methods for Business Fourth Edition (Wiley Student

2. Kothari C.R. Research Methodology- Methods and Techniques Second Edition.

Review of different research report available on operational performance of MBL.

(On the Study of Overall Performance of Mercantile Bank Limited)
Methodology of the study: Target Population:
The population of my study is one of the private banks of our country that is the Mercantile Bank Limited in Bangladesh.

Sample of the Study:

It is difficult to measure the operational performance of all the banks of Bangladesh within the short time. So I prefer to take the Mercantile Bank Limited as a sample of my study to get an idea of the operational performance of MBL.

Primary Source of Data: 1. Discussion with officials of this bank. 2. Face to face conversation with clients 3. Questionnaire . Secondary Source of Data: 1. 2. Annual Reports of MBL. 3. Other published documents of MBL. 4. Newsletter of MBL. 5. Periodic Bulletins published by Bangladesh Bank.

Techniques of Analysis:
After collecting the data, it is necessary to analyze or process the data to get meaningful information. Under this study the collected data are analyzed. To analyze the collected data scrutinized, a person has to require following and applying some techniques. Accordingly, I used some important techniques for analyzing the required data, so that I can get

(On the Study of Overall Performance of Mercantile Bank Limited)
fruitful result from my study. The techniques that I have applied to prepare the report are as

1) Processing of data 2) Analyzing of data 1) Processing of data: Processing of data includes four steps: a) Editing b) Coding c) Classification d) Tabulation a) Editing: Editing of data is a process of examining the collected raw data (especially in surveys) to detect errors and omissions and to correct these when possible. Editing is done to assure that the data are accurate, consistent with other facts gathered, uniformly entered, as complete as possible and have been Ill arranged to facilitate coding and tabulation. b) Coding: Coding refers to the process of assigning numerals or other symbols to ansIr so that responses can be put into a limited number of categories or classes. c) Classification: Most research studies result in a large volume of raw data, which must be reduced into homogenous groups if I are to get meaningful result. This fact necessitates classification of data which happens to be the process of arranging data in groups or classes on the basis of common characteristics. d) Tabulation: When a mass of data has been assembled, it becomes necessary for the researcher to arrange the same in some kind of concise and logical order. Tabulation is the process of summarizing raw data and displaying the same in compact form.

2. Analyzing of data: I have used the following tools to analyze the data Tabular representation. Graphic representation through bar diagram

(On the Study of Overall Performance of Mercantile Bank Limited)
Pie graph Chart etc.

Limitations of the study:

Information in the bank is confidential and critical. The main barrier in preparing this report is data confidentiality. Very limited time is one of the most faced obstacles in preparing this report. Due to time shortage, details of many aspects of the services of MBL have to ignore in this report. Data may be collected through observation and discussion with bank personnel. Statistical analysis of the data has not been done. Thats why the findings are not statistically validated. Sometimes I may fail to get full co-operation from all the associated parties.

Plan of the Study:

In order to complete a job properly one must have a plan. I just want to operate my study properly to have a better conclusion of this study. So I think that I should plan properly because without plan it will be too hard to me to operate and make a conclusion from the study. For that I have to follow a plan to operate the study. My report may contain the following chapters:

Chapter-1: Introduction. Chapter-2: Methodology Chapter-2: Overview of the Mercantile Bank Ltd.

(On the Study of Overall Performance of Mercantile Bank Limited)
Chapter-3: Areas of overall performance of MBL. Chapter-4: Evaluation of the overall performance. Chapter-5: Suggestions and recommendation. Bibliography. Questionnaire. Appendix.