Dhaka International University The Excellent Central of Knowledge

Table of Content
Topic Description Executive Summery Chapter 1 1. 1.1 1.2 1.3 1.4 1.5 Introduction Origin of the Study Scope of the study Objective of the Study Methodology of the Report Limitation 02 04 04 04 05 05 Page No vii

Chapter 2: Industrial & Organizational Overview 2.1 2.2 2.3 Introduction Banking industry in Bangladesh and its operation Organizational Overview of MBL 2.3.1 History 2.3.2 Approach of MBL 2.3.3 Objectives & Goal of Mercantile Bank Limited 2.3.4 Features of Mercantile Bank Limited 2.3.5 The Corporate Structure 2.3.6 Management Structure 2.3.7 Function of Mercantile Bank Limited Operating and Financial Performance 2.4.1 Branch Information 2.4.2 Resources 2.4.3 Performance of MBL-At a Glance 2.4.4 Financial Position 2.4.5 Comparative Statement of Income & Expenditure 2.4.6 Net Profit 2.4.7 Financial Highlights 2.4.8 Financial Summary Products & Services 2.5.1 Card
THE OVERALL BANKING ACTIVITIES OF MERCANTILE BANK LIMITED

2.4

2.5

08 08 14 14 15 15 16 18 19 20 22 22 24 25 25 26 27 27 28 28 28

Dhaka International University The Excellent Central of Knowledge 2.6 2.5.2 Others 2.6.1 2.6.2 2.6.3 2.6.4 2.6.5 Online Banking Mercantile Bank Foundation R&D: Investing into the Future Human Resources Development Training Division MBL Time Line 29 30 30 31 31 31 32

Chapter 3: General Banking 3.1 3.2 Introduction Accounts Opening 3.2.1 Types of accounts with terms and conditions 3.2.2 Issuing Cheque book 3.2.3 Account enquiry 3.2.4 Transfer of an account 3.2.5 Closing of an account 3.2.6 Accounts opening process Local Remittances Fixed Deposit Receipt (FDR) Deposits Deposit Schemes Collection and Clearing House 3.7.1 Clearing 3.7.2 Procedures for collection Accounts Cash 3.9.1 Cash receipt 3.9.2 Cash payment 3.9.3 Dishonor of Cheque 3.9.4 Sorting of the Voucher Locker Service 34 34 35 36 36 37 37 37 41 47 49 49 52 52 55 56 57 57 58 58 59 59

3.3 3.4 3.5 3.6 3.7 3.8 3.9

3.10

Chapter 4: Foreign Exchange Banking 4.1 4.2 4.3 4.4 4.5 4.6 Introduction: Foreign Exchange Foreign Trade Need for Foreign Trade Back Ground of Banks Involvement Types of Foreign Trades Dealt in Banks Foreign Trade Department 4.6.1 Import 4.6.2 Export
THE OVERALL BANKING ACTIVITIES OF MERCANTILE BANK LIMITED

62 62 63 63 64 64 66 73

Dhaka International University The Excellent Central of Knowledge 4.7 Back-To-Back L/C 4.7.1 Features of back-to-back L/C 4.7.2 Checklist to open back-to-back L/C 4.7.3 Papers required opening back-to-back L/C 4.7.4 Steps to issue back-to-back L/C 4.7.5 Payment under back-to-back L/C Foreign Remittance 4.8.1 Workings of this department 4.8.2 Inward Foreign Remittance 4.8.3 Outward Foreign Remittance 4.8.4 Remittance facilities 4.8.5 Travelers Cheque 4.8.6 Endorsement of cash 4.8.7 Credit Card 4.8.8 Issue FDD 4.8.9 Foreign currency account 4.8.10 Telegraphic Transfer (TT) 78 78 78 79 79 79 80 81 82 82 82 83 84 85 85 85 86

4.8

Chapter 5: Investment 5.1 Introduction 5.2 Principles of Loans and Advances 5.3 Credit Facilities 5.4 MBLs Loans and Advances 5.5 Credit Schemes 5.6 Loan Application Form 5.7 Cs for analysis Risk 5.8 LRA (Lending Risk Analysis): Credit Risk Evaluation 5.8.1 Business Risks 5.8.2 Financial Risks 5.8.3 Management Risks 5.8.4 Security Risks 5.8.5 Environmental/Economic Risks 5.9 Processing and Screening of Credit Proposal 5.10 General Procedure for Loans and Advances 5.11 Legal Framework for Loan Recovery 5.12 Different Micro Credit Program 5.12. Consumer Credit Scheme 1 5.12. 2 5.12. 3
THE OVERALL BANKING ACTIVITIES OF MERCANTILE BANK LIMITED

88 88 89 89 98 101 102 103 104 104 104 105 105 105 106 116 116 117 117 118

Small Loan Lease Finance

Dhaka International University The Excellent Central of Knowledge 5.12. 4 5.12. 5.13 5.14 5.15 Doctors Credit Scheme Rural Development Scheme 118 118 119 121 122

5 MBL Position in Loan & Advances MBL Position in Classified Loan Ending Summery

Chapter 6: Findings, Recommendation & Conclusion 6.1 Findings 6.2 Recommendation 6.3 Conclusion Bibliography List of Figures Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 Figure 11 Figure 12 Figure 13 Figure 14 Figure 15 Banking Operation under BB Management Structure of MBL Site Map Asset Portfolio of MBL Financial Summery of MBL MBL Time Line Deposits of MBL Import Trade of MBL Export Trade Foreign Remittance through MBL Loans & Advances of MBL Credit Mix on MBL Credit Portfolio of MBL Use of Fund of MBL

124 125 126 127

13 19 22 26 28 32 49 65 65 81 90 90 92 93 106

Flow Chart of Credit Proposal

THE OVERALL BANKING ACTIVITIES OF MERCANTILE BANK LIMITED

Dhaka International University The Excellent Central of Knowledge

List of Tables Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 MBL at a glance Asset Portfolio of MBL Income Description Expenditure Description Financial Highlights Charges for Online Banking of MBL PO Charge Locker Information of MBL Fees for issuing Import Registration Certificate Foreign Remittance Credit Portfolio of MBL Use of Fund Nature wise Loans & Advances of MBL Loans, Cash Credit and Overdraft of MBL Provisions for Loans & Advances of MBL General provision for Unclassified Loan and Advances Provision for the Classified Loans and Advances Classifications of Loans & Advances of MBL 25 25 26 26 27 30 42 60 69 80 91 92 119 119 120 120 121 122

THE OVERALL BANKING ACTIVITIES OF MERCANTILE BANK LIMITED