internship report on csr of mutual trust bank ltd part 1

8/15/2019 Internship Report on CSR of Mutual Trust Bank Ltd Part 1

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Corporate Social Responsibil i ty of Mutual Trust Bank

Ltd.

Department of Management Studies

Faculty of Business Studies

Jagannath University


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I nternship Report

on

“ Corporate Social Responsibil ity of Mutual Trust Bank L td.”

Supervised By:

Prof. Dr. Md. Golam Mostafa

Submitted By:

Khairul Molla

BBA (6th Batch)

ID: 114989 Session: 2010-11

Date of Submission:

31 August 2015


Jagannath University, Dhaka


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Letter of Transmittal

31 August, 2015


Department of Management StudiesJagannath University, Dhaka

Subject: Transmission of the report “Corporate Social Responsibility of Mutual Trust

Bank Ltd.”

Dear Sir,

I am grateful to you for the submission of the report on “Corporate Social Responsibility ofMutual Trust Bank Ltd.” in the completion of the requirement for internship. This report tries

to find out the operation of CSR Activities department of Mutual Trust Bank Ltd. along with anoverview of the bank. I have my utmost effort to reflect experience, skill and knowledge, which I

acquired at the time of working at Mutual Trust Bank Ltd.

Sincerely,

………………………………

Khairul MollaID # 114989

BBA (6th Batch)


Faculty of Business StudiesJagannath University, Dhaka


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Declaration

I affirm that the Internship Report titled “Corporate Social Responsibility of Mutual Trust

Bank Ltd.” being submitted for the internship part of BBA program is the original work carried

out by me. It has not formed the part of any other reports submitted as internship report either in

this or any other University.

Thanks and Regards

Yours Truly

………………………………

Khairul Molla

ID: 114989 Session: 2010-11


Jagannath University, Dhaka


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Certificate from Supervisor

This is to certify that the internship report on “Corporate Social Responsibility of Mutual TrustBank Ltd.” is done by Khairul Molla ID no: 114989 as a part fulfillment of the requirement of

BBA program from Department of Management Studies, Jagannath University. The report has been prepared under my guidance and is a record of the fide work carried out successfully.

I wish him every success in his future life.

-----------------------------------------------------


Supervisor

BBA Internship Program

Department of Management StudiesJagannath University, Dhaka.


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Acknowledgements

First of all I offer my grateful thanks to the Almighty, without whose blessings this report wouldn’t

have been possible. Then I would like to thanks some specific person who helped me a lot to

prepare this report.

Secondly I would like to thank my Internship Supervisor Prof. Dr. Md. Golam Mostafa, for giving

me the opportunity to prepare my report on CSR Activities of Mutual Trust Bank Ltd.

I have learned many things while I was preparing this report and I think it will help me in my

future workplace. So I would like to thanks him for giving me instructions in preparing this report.

I would like to thank Mr. Samsul Alam Manager & SVP, MTB Babu Bazar Branch for his support

during the time of my internship.


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Table of contents

Contents PageLetter of Transmittal------------------------------------------------------------- iDeclaration------------------------------------------------------------------------ ii

Certificate from Supervisor----------------------------------------------------- iiiAcknowledgements-------------------------------------------------------------- ivAbbreviations--------------------------------------------------------------------- viiExecutive Summary------------------------------------------------------------- vii

Chapter -1

Introduction 2-41.1 Introduction 2

1.2 Background of the report ------------------------------------------------------ 21.3 Objective of the study----------------------------------------------------------- 2

1.4 Methodology of the study------------------------------------------------------- 3

1.5 Sources of Information---------------------------------------------------------- 3

1.6

Significance of the Study ------------------------------------------------------- 31.7 Scope of the Report ------------------------------------------------------------- 4

1.8 Limitation of study -------------------------------------------------------------- 4

Chapter -2

Overview and Activities of MTBL 6-13

2.1 An overview of Mutual Trust Bank Limited--------------------------------- 6

2.2 MTB Vision---------------------------------------------------------------------- 7

2.3 MTB Mission--------------------------------------------------------------------- 72.4 Strategic Objectives ------------------------------------------------------------- 7

2.5 Management Hierarchy --------------------------------------------------------- 8

2.6 Capital Structure ----------------------------------------------------------------- 92.7

Credit Rating Report------------------------------------------------------------- 92.8 Products and Services provided by MTBL----------------------------------- 102.9 Mutual Trust Bank LTD. Babu Bazar Branch------------------------------- 11

2.10 Lessons Learned From the Internship Program------------------------------ 13

Chapter -3

Theoretical Part 15-243.1 Corporate Social Responsibility (CSR) -------------------------------------- 153.2 Views of Social Responsibility------------------------------------------------ 153.3 Types of corporate social responsibility-------------------------------------- 163.4 Some others types of CSR------------------------------------------------------ 16

3.5

Advantages of Corporate Social Responsibility----------------------------- 163.6 Potential business benefits------------------------------------------------------ 183.7 CSR Standards and Practices--------------------------------------------------- 193.8 Banking Sector in Bangladesh and CSR Practice--------------------------- 203.9 MTB Corporate Social Responsibility (CSR) ------------------------------- 223.10 Some Recent CSR Activities of MTBL-------------------------------------- 22


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Chapter -4

Analysis of CSR Activities of MTBL 26-314.1 CSR activities of Banking Sector in Bangladesh---------------------------- 264.2 Trends of sectorial pattern of direct CSR expenditure --------------------- 274.3 Mutual Trust Bank CSR Expenditure----------------------------------------- 28

4.4

MTB CSR expenditures as % of after tax profit----------------------------- 294.5 MTB CSR expenditures in Education Sector-------------------------------- 304.6 Findings -------------------------------------------------------------------------- 31

Chapter -5

Recommendation and Conclusion 33-34Recommendation----------------------------------------------------------------- 33

Conclusion------------------------------------------------------------------------ 34

References------------------------------------------------------------------------ 35

List of Figures

Figures PageFigure 1: Management Hierarchy of MTB-------------------------------------------- 8Figure 2: CSR expenditure By Bank 2010-2013 (Million Tk.)--------------------- 26Figure 3: Trends of sectorial pattern of direct CSR expenditure------------------- 28Figure 4: Mutual Trust Bank Ltd. CSR Expenditure (2010-2013)----------------- 29Figure 5: MTB CSR expenditures as % of after tax profit-------------------------- 30Figure 6: MTB CSR expenditures in Education Sector------------------------------ 30

List of Tables

Tables PageTable 1: Authorized & paid up Capital of MTB(2010-14)-------------------------- 9Table 2: CRAB Rating (2012-13)------------------------------------------------------ 9Table 3: CSR expenditure By Bank (Million Tk.)------------------------------------ 26Table 4: Trends of sectorial pattern of direct CSR expenditure-------------------- 27

Table 5: MTB CSR Expenditure (2010-2013)---------------------------------------- 28Table 6: MTB CSR expenditures as % of after tax profit--------------------------- 29Table 7:MTB CSR expenditures in Education Sector------------------------------- 30


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Abbreviations

A/C = Account

ATM = Automated Teller Machine

BB = Bangladesh Bank

BDT = Bangladeshi TakaBGMEA = Bangladesh Garment Manufacturers and Exporters

CD = Current Deposit

CEO = Chief Executive Officer

CIB = Credit Information Bureau

CR = Corporate Responsibility

CRAB = Credit Rating Agency of Bangladesh

CSR = Corporate Social Responsibility

DD = Demand Draft

EPB = Export Promotion Bureau

FDI = Foreign Direct InvestmentFDR = Fixed Deposit Receipt

GDP = Gross Domestic Product

HR = Human Resource

IBM = International Business Machine

ICT = Information & Communication Technology

ISO = International Standard Organization

IT = Information Technology

L/C = Letter of Credit

MDRI = Management and Resources Development Initiative

MICR = Magnetic Ink Character Recognition

MTB = Mutual Trust Bank Ltd.

NRB = Non Residence Bangladeshi

PO = Pay Order

PR = Public Relation RM = Risk Management

SB = Savings Bank

SME = Small and Medium Enterprise

SWIFT = Society for Worldwide Inter-bank Financial Telecommunication

TIN = Tax Identification Number

VAT = Value Added Tax


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Executive Summary

This report is based on “Corporate Social Responsibility of Mutual Trust Bank Ltd.”. This

research has tried to find to out CSR activities in details, various CSR activities, Intensity of

various sectors of CSR in CSR Budget and whether any link exists between Company

performances and CSR activities in context of Mutual Trust Bank Ltd., Bangladesh.

Mutual Trust Bank Ltd. defines CSR in three dimensions – 1. Education (30%) 2. Health and

Nutrition (20%) 3.Others (50%). There is no guideline about CSR in Bangladesh, although

Bangladesh bank has handled a two page document about CSR to Banks. Mutual Trust Bank Ltd.

does not use voluntary guidelines. So, there is no specified procedure for implementation of CSR.

Whenever a person or entity is in need of money, normal application for aid is submitted by them

and then the application is verified by the personnel responsible for managing CSR.

At the end of this research it was found that there is no significant relationship between “THE

MUTUAL TRUST BANK LTD’’s Corporate Social Responsibility and Corporate Financial

Performance. There some challenged perceived by Mutual Trust Bank Ltd. of Bangladesh such as

lack of transparency and immoral behavior of concerned person of CSR ,no specified or detailed

guideline served by Bangladesh Bank ,in some aspects, CSR is practiced as legalized way to

extortion by political parties.

internship report on csr of mutual trust bank ltd part 1

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