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Mutual Trust Bank Limited a private sector commercial bank. It started operations on 24 October 1999 with an authorised and paid up capital of Tk 1,000 million and Tk 200 million respectively. The capital is divided into ordinary shares of Tk 100 each. In December 2000, the banktotal equity and reserve funds were Tk 208.48 million and Tk 8.48 million respectively. The bank is a Bangladeshi joint venture company with equity participation from Advanced Chemical Industries Ltd., East West Properties Development Ltd. and Associated Builders Corporation Ltd. The bank has its head office at Dhaka and 4 branches. The total number of employees of the bank is 68. The management of the bank is vested in an 18-member board of directors, including representatives of the 3 sponsor firms. The managing director is its chief executive. The bank conducts all types of commercial banking activities including foreign exchange business and other financial services. During the first two years of operations, the bank's main focus was on the delivery of personalised customer services and expansion of its clientele base. On 31 December 2000, the total deposits of the bank stood at Tk 1,673.63 million. The deposit-mix comprised short-term deposits (Tk 70.44 million), savings deposits (Tk 105.72 million), current deposits (Tk 88.33 million), fixed deposits (Tk 1,316.72 million), deposits under special schemes (Tk 3.44 million), and other deposits (Tk 88.98 million). In 2000, the bank introduced two deposit products in the market namely, Save Every Day and Brick by Brick, which attracted the depositors due to some special features. Total loans and advances of the bank stood at Tk 602.32 million on 31 December 2000. Trade finance was the main focus of lending but import and export finance, as well as working capital finance for industrial units were also major lending areas. In its lending policy, the bank gave priority to the private sector. It introduced consumer credit facilities for the professionals, service holders, students, and teachers to help them improve their standard of life. It had no classified loan upto the end of 2000. During 2000, the foreign exchange business handled by the bank amounted to Tk 2,071.57 million, which comprised imports servicing (Tk 1,533.80 million), exports financing (Tk 507.34 million), and remittance facilities (Tk 30.43 million). The bank established correspondent relationships with 14 reputed banks at various foreign financial centres. In December 2000, the total assets of the bank were valued at Tk 2,444.79 million. Assets sprung from off-balance-sheet items were Tk 446.7 million. The bank earned a good amount of interest incomes through treasury functions and by timely placement of surplus funds in call money market. Investment of the bank other than loans and advances figured at Tk 125.10 million in 2000 and the whole amount was in government treasury bills. During 2000, the total operating income of the bank was Tk 178.20 million and its operating expenses were Tk 158.02 million which resulted in operating profits of Tk 20.18 million. 1% provision on the unclassified advances equivalent to Tk 6.19 million was made and Tk 5.60 million was retained as provision for taxation. Of the net profit after tax, Tk 2.80 million was transferred to Statutory Reserves and Tk 5.59 million to General Reserves. The bank reached break even within only 67 days after it commenced business. [S M Mahfuzur Rahman]
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