It is with great satisfaction that I submit my internship report on "General Banking Activities of Mercantile Bank Limited" which you have assigned to me as an essential requirement for the internship program. BBA1801013070 of Sonargaon University (SU) would like to solemnly declare here that this internship report on General Banking Activities of Mercantile Bank Limited has been. This is to certify that the internship report on “General Banking Activities of Mercantile Bank Limited” prepared by Luma Farhana Islam Nabila, a student of BBA program, ID Department of Business Administration, Sonargaon University under my supervision and guidance.
I was appointed to continue my internship in "General Banking Activities" of Mercantile Bank Limited, International Airport Road Branch.
Chapter ONE
Introduction
Methodology of the Report
Personal interview with the officers and executives of Mercantile Bank Limited➢ Personal interview with the customer.
Sources of Data
Chapter TWO
Background of the Company
- Background of the Company
- The Commitments
- The Mission
- The Visions
- The Values
- Strategies
- Core Values
- Objectives
- Departments of MBL
- Human resources division: Mercantile Bank Limited recognizes that a productive and motivated work force is a prerequisite to leadership with its customers, its shareholders and in the
- Personal banking division: The personal banking department deals with the consumer credit schemes such as the personal loan, car loan, education loan, tax loan, personal secured loan that are
- Finance & accounts division: This is considered as the most powerful department of MBL
- Audit & risk management division: The Risk Management Division is responsible for measuring risks that the Bank might face in the course of its operations, developing corporate risk
A group of acclaimed businessmen from the country came together to meet this need and founded Mercantile Bank Limited on June 2, 1999. Mercantile Bank deals with online hardware support for various departments of the bank. This department is the most active department of MBL where employees are always ready to solve any problems in the system.
The service manager leads the department that formulates and manages various critical issues in MBL's service function.
Chapter THREE
Products of MBL
Products of MBL
- Retail Banking: Mercantile Bank Limited always provides suitable product (loans and advances) for its customers. The bank also designs new products and reengineering the existing
- Excel Account: Excel Account has been tailored in the manner of having both asset and liability characteristics blended into a single product for salaried individuals employed in any
- Salary Account: Mercantile Bank has launched a special package of savings account for employees belonging to institutions with which Mercantile Bank has a corporate agreement. With
- Income Unlimited
- Gift Cheque
- Home Loan: The product is a term financing facility to individuals to aid them in their purchases of apartment or house or construction of house. The facility will become affordable to
- Securitization of Assets: A powerful and effective means of generating funds for a certain category of institutions, securitization of assets is still in its infancy in the need however
- Finance & Advisory Services: Given the needs of its large and varied base of corporate clients Mercantile Bank will be positioning itself to provide investment banking advisory
- Syndication of Fund: There has been a surge in the number of syndication deals closed in the last few years. 2004 was an exceptionally good year for syndicated deals for the local
Death of the account holder and non-payment of 5 consecutive installments Settlement of the account. Closure of Account: The account will immediately cease to function in the event of the death of the depositor. Settlement of account: The account will be settled in accordance with the instructions in the account opening forms in the event of the death of the account holder.
Customers have the option to advance up to 90% of the deposited amount at the time of registration. The customers will also have to pay the bank's OD interest if the account balance is overdrawn. The term of the account is up to 3 years, with a renewal option for every year until the client resigns from the institution.
The account will have an OD limit up to the amount of the salary of the person working at the institution. Depending on the size and purpose of the loan, the number of terms varies from 12 to 48 months. Continued operation of the business for at least three years in the current industry.
Depending on the size and purpose of the loan, the number of installments varies from 12 to 60 months. This increase in the number of syndications can be mainly attributed to the prudent lending guidelines of the Bangladesh Bank.
Services of MBL
- Islamic Banking: Mercantile Bank has started its 'Islamic Banking Operations’ ‘Taqwa’
- ATM Card Services Features
- Credit Card Services: MBL introduce an advanced product of VISA named VISA Platinum Credit Card by which customers get higher status than existing Gold product
Since its inception, the Mercantile Bank has valued socio-economic development and was among the first to recognize the potential of SMEs. Mercantile Bank aspires and tries to perfect throughout 2008 has been scientifically applied in 2009 in lending various fund and non-fund based loans and advances to a wide variety of customers through existing as well as a no. Keeping in mind the ever-increasing interest of the larger community, the Honorable Board of Directors (BOD) of MBL has decided to go for Islamic Banking operations.
A separate Islamic Banking department at the head office with a team of experienced Islamic Bankers is also looking after the Islamic Banking activities of the bank. Mercantile Bank Limited formally commenced its Islamic Banking operations on June 29, 2020 with 10 (ten) issues of Islamic Banking Windows (IBWs). Gradually, MBL has expanded its Islamic Banking network across the country by opening more than 35 Islamic Banking Windows (IBWs) in 2020 and 2021.
Currently, MBL Islamic Banking provides customer service through 45 (forty-five) Islamic Banking Windows under its wide network, conventional branches, spread across the country by using the genuine online banking platform. MBL digital banking wallet “Rainbow” services, as well as Taqwa Debit Card and Taqwa Card (alternative to the traditional credit card) will be available for the better and time-appropriate services of MBL Islamic Banking customers. Mercantile Bank Securities Limited was developed to ensure the development of a healthy capital market and to provide higher, better and diversified services to a wide range of clients.
MBSL offers high quality products and services at a competitive rate. Mercantile Bank Securities Limited offers full-fledged international standard brokerage services with margin lending facility. Our locker service ensures the safety, security and confidentiality of the valuables kept in the lockers.
Chapter FOUR
Functions of the General Banking
Division
Functions of the General Banking Division
- Operating Customer Service Department
- Current Deposit Account General features
- Savings Deposit Account (SDA) General features
- Short Term Deposit (STD) General features
- Time Deposit Account (TDA): This branch maintains a separate section for maintaining Time Deposit account. FDR is an important factor for the bank and volume of FDR determines
- Fixed Deposit Receipt (FDR) General features
- General (For all types of accounts)
- Issuance of Cheque Book
- Account Balance Inquiry: MBL sends account statement to its clients two times in a year
- Management of Cash
- Receipt of Deposit: This department receives deposit or funds from the customer, and the collection procedure as follows
- Making Payment to the Customer: The payment is made to a customer only against a valued authentic cheque. The teller has to follow the following steps in making such payment
- Management of the Vault: The cash department also manage the vault of the branch. In such a management the cash in charge of the branch necessary liquid money in the vault for the
- Remittance of Funds
- Outward Remittance
- Operation Relating to Clearing
- Inward Clearing: Here the cheques and drafts drawn on the bank itself are deposited to different banks by their clients and then carried in to the bank for payment. The procedure for
- Outward Clearing: Here the drafts and cheques drawn on different bank's branches deposited by the clients into their accounts they are received at first for clearing and after getting
- Management of Deposit
- Internal Control & Internal Check
From this department all kinds of necessary services are provided as per the requirement of the customer. The relationship between a banker and his customer begins with the banker opening an account in the customer's name. FDR is an important factor for the bank and the amount of FDR determines the investment base of the bank.
In the case of a deposit in joint names, MBL also includes the instructions regarding the disbursement of money on the maturity date of the deposit. In the case of a company account, the special instructions must be provided in accordance with the articles of association and the memorandum of association of the company. A photocopy of the authorized signer's passport must be obtained if the account is not a corporate account.
The Thana and/or Upazilla code should be clearly mentioned in the CIF of the applicant and/or the authorized signatory of the account to be opened. The account transaction profile must be duly completed and signed by the authorized signatories of the account to be opened. List of members of the board/executive committee – duly attested by the chairman/secretary.
Compensation should be obtained for the repayment of the money together with interest in case of dishonor of the instruments. In this department, the department is concerned with the exploitation of the deposit deposited by the client. How the amount is paid depends on the client's instructions.
If no request is made, the bank will have credited the interest to the customer's A/C on the due date of the FDR and the FDR will run again with the outstanding balance of the A/C.
Chapter FIVE
My work area
- Job responsibilities
- Accounts Opening
- Receive Cheque requisition
- Pay Order Issue
I worked with Tangima Anis, SEO, In charge of General Banking of Mercantile Bank Limited, International Airport Road Branch. There were various responsibilities performed by me in the general banking department of Mercantile Bank Limited, International Airport Road Branch. Within this time different types of work were done by me and they are given below.
It is the first phase of customers who will receive services from the bank. The targeted customers can be individuals, partners, limited companies, trustees/clubs/associates and various types of institutions. It is also important to know why the customer wants to open an account in this branch.
Opening an account is the first step to be a Mercantile Bank customer and enjoy its various services. To deposit and withdraw money from The Mercantile Bank Limited and to have other services, an account is mandatory for every individual and institutional customer. So, I closed the accounts with utmost customer focus so that the next time they think of opening a bank account, Mercantile Bank Limited comes to mind as their preferred choice.
A check requisition is received from the customer for giving a new check book containing a specific number of pages mentioned by customer. Payment order has been issued to serve the customer who wants to send money not in cash but in check.
Chapter SIX
SWOT Analysis of MBL
- SWOT Analysis of MBL at a Glance
- Strengths
- Weaknesses
- Opportunities
While creating a SWOT, employees point out some key strengths and weaknesses as well as some threats and opportunities regarding the Bank's various issues such as. Strong corporate identity: According to its customers, MBL is the leading provider of identity for financial services worldwide. With its strong corporate image and identity, it has positioned itself better in the minds of the customers.
Clear schedule: Everyone in MBL, from the appraiser to top management, must work on the same schedule towards a different aspect of the same goal, while working together at all levels for a fairly long period of time. Strong employee retention and assets: MBL employees are one of the company's most important assets. Empowered Staff: MBL's human resources are extremely well thought out and perfectly managed.
Right from the start, the top management believed in empowering the employees, where they refused to put their finger in all parts of the pie. In addition to the strengths, both customers and employees identified some major weaknesses at the bank. As MBL is one of the leading providers of all financial services, in Bangladesh it can also offer these services.
Nationwide Network: MBL's ultimate goal is to expand its operations across Bangladesh. Large Population: Bangladesh is a developing country to satisfy the needs of large population, a large amount of investment is required.
Chapter Seven
Limitations,
Recommendations, Conclusion
Scope and Limitations
The scope of the report was to map out the financial aspect of the bank's operation. The scope of this report is limited to the general descriptions of the bank, its services, its position in the industry and its competitive advantage. There is certain information that is highly classified and the Bank did not want to provide this information.
The bank does not have sufficient documents regarding the amount of interest they collect on various loans. In those cases I have relied on some assumptions, which as a result have created a degree of inaccuracy. The relationship managers at operational or strategic level of the department in question are extremely busy achieving their objectives.
So it was very difficult for me to free them up and get some practical ideas about their expectations and opportunities regarding my topic. Despite all these limitations, I have done my best to make this report authentic and worth reading.
Recommendations
Conclusion
