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Loan Services of Trust Bank

SUBMITTED TO:
Mr. MOHAMMAD AZHAR HOSSAIN (ZAS)

Lecturer

School of Business Studies

Southeast University

SUBMITTED BY:
Md. Shahnewaz Khan
ID: 2020110000001
Course Name: Bank Management
Subject Code: 314
Sec: 2
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Table of Contents

1. Introduction 3

2. Company Overview 4

3. Findings and Analysis (PRODUCT AND SERVICE) 5-6

4. Card Services of Trust Bank LTD. 7

5. Loan Services of Trsut Bank LTD. 8-16

6. Recommendation 17

7. Conclusion 18

8. References 19
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Introduction
The loan sector of Bangladesh dominated by the banking sector. The dominion of the
banking sector not only makes the loan sector vulnerable but also highlights the crucial
importance of the sector in resource utilization and economic growth. As the business
produces products and items, so does the bank creates and controls money market and
advances formation of capital. From this point of view, banking-a technical profession- can be
termed as industry. Services to its clients are the products of banking industry other than being
a pivotal factor in advancing capital development in the country. As all monetary and fiscal
activities spin round this significant 'Industry', the role of banking scarcely over underscored.
Throughout the report, loan services of trust Bank limited analyzed based on some key financial
ratios such as debt to equity ratio, return on asset, return on equity, net profit margin, total
asset turnover ratio, fixed asset turnover ratio and so on. Based on the performance on each of
the ratios mentioned, loan services. Therefore, loan services will help the banks to identify in
which position they are standing in the industry.
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Company Overview
Trust Bank Limited is one of the leading private commercial
bank having a spread network of 62branches including SME across Bangladesh and plans to
open few more branches to cover the important commercial areas in Dhaka, Chittagong, Sylhet
and other areas in 2009. The bank, sponsored by the Army Welfare Trust (AWT), is first of its
kind in the country. With a wide range of modern corporate and consumer financial products
Trust Bank has been operating in Bangladesh since 1999 and has achieved public confidence as
a sound and stable bank.

Bangladesh is one of the developing countries in the world. The economy of the country has a
lot left to be desired and there are lots of scopes for massive improvement. In an economy like
this, banking sector can play a vital role to improve the overall social – economic condition of
the country. The banks by playing the role of an intermediary can mobilize the excess fund
of surplus sectors to provide necessary finance, to those sectors, which are needed to
promote for the sound development of the country. The motives of banks are profit-earning.
The word ‘Bank’ refers to the financial institution that deals with money transaction. Banks
collect deposits at the lowest possible cost and provide loans and advances at highest
cost. The spread between the two is the profit for the bank. Commercial banks are primary
contributors to the national development of the country. The revenue earning sources of banks
are mainly loans and advances. The credit facility can be of two types: funded and non-funded.
Funded credit can be expensive for the banks, as the bank has to pay interests. Non-funded
credit includes Letter of Credit, Foreign Guarantee, Bank Guarantee,
Remittance etc.; these are the main source of income for the foreign exchange business. If a
bank can increase its import and export transactions, its profit will obviously reach a higher
level, as the costs are negligible. Trust Bank Limited deals with money transaction as well as it
deals with the customers. This report represents what are loan services of Trust Bank Limited
and the dealings with the customers of their bank.
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Findings and Analysis

PRODUCT AND SERVICE

Deposit account:

1. CURRENT DEPOSIT:

Current Deposit Account is the net flow of current transactions with no restriction, including
services and interest payments. Types of Current Deposit Account:

 Individual,
 Joint Proprietorship
 Partnership
 Club, Society, Trust, Autonomous Body, Govt. Dep’t., Directorate etc.

2. SAVINGS DEPOSIT ACCOUNT:

A Saving Bank account (SB account) is meant to promote the habit of saving among the people.

Types of Savings Deposit Account:

 Individual
 Joint
 Club
 Society
 Others

3. SHORT TERM DEPOSIT ACCOUNT:

Short Term Deposit Account is the net flow of current transactions including services and
interest payments.

Types of Short Term Deposit account:

 Public Limited Co. Private Limited

 Co. Govt/ Semi Govt. / Autonomous / Corp
 Societies / Clubs. Etc.
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4. FIXED DEPOSIT ACCOUNT:

A fixed deposit is meant for those investors who want to deposit a lump sum of money for
affixed period; say for a minimum period of 30 days to one year and above, thereby earning
higher rate of interest in return. Investor gets a lump sum (principal +interest) at the maturity
of the deposit.

5. TRUST SMART SAVERS SCHEME (TSS):

The name of the scheme is 'Trust Smart Savers Scheme (TSS)' and an Account holder
subscribing to this scheme will be called TSS Account holder.

6. TRUST MONEY DOUBLE SCHEME (TMDS):

The objective of this scheme is to double the deposited amount in the following way:

7. TRUST EDUCARE SCHEME (TES):

Students who are eligible to receive refunds from Bank are encouraged to enroll in this deposit.
An applicant can open TES account in his own name, in his/her spouse's name or in the name
of his/her children operated by the guardian.

8. MONTHLY BENEFIT DEPOSIT SCHEMES (MBDS):

The benefit of the scheme will be paid on monthly basis. As such this is called Monthly Benefit
Deposit Scheme (MBDS).

 The benefit of the persons who intend to meet the monthly budget of the
families from the income out of their deposit. It may be retired service holders,
housewife of businessman & other professionals.

 Trust and Foundations or other associations, which award monthly

scholarship/stipends to students etc.
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Card Services of Trust Bank LTD.

Debit Card:

 Visa Debit Card:

 For current and savings accounts

 Bank Asia VISA Debit Card comes with many protection features

 Master Debit Card:

 The most secured and fastest payment network.

Welcome Debit Card:

 It is issued if anyone loses their card or if it is stolen.

 It can be issued instantly to provide customers access to his/her account.

1. Credit Card:

Different types of credit card facility provided by Trust Bank Limited are:

Visa Gold Local:

Unsecured credit line Operable only within Bangladesh Credit line for up to BDT 100,000

Visa Classic Local:

Unsecured credit line Operable only within Bangladesh Credit line for up to BDT 50,000

Visa Classic International:

Unsecured credit line Operable outside Bangladesh only Credit line equivalent to USD 1000

Visa Gold International:

Unsecured credit line Operable outside Bangladesh only Credit line equivalent to more than
USD 1000

Visa Dual Card:

Unsecured credit line Operable both inside and outside Bangladesh Credit line in both
currencies Combined limit is determined by the Credit Card Approval Committee.
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Loan Services of Trust Bank LTD.

Loan services are:

 Trust Projukti: Loan for Light Engineering

Customer Segment:
Specially designed for potential customers who are involved in light engineering
business.
Purpose of the loan:
To meet up working capital requirement and to acquire fixed assets to set up
business units/industries/ expansion of existing business – repair & renovation,
new outlet, building additional stocks.
Type of Facility:
OD, Time Loan, Term Loan. L/C may be opened to import capital machineries for
installation in the same business.
Tenor:
Maximum 12 Months for Working Capital facility and Maximum 60 Months for
Fixed asset purchase or expansion of business.
Age Limit:
Minimum- 25 years
Maximum- 55 years
Loan Amount:
For small enterprise:
Min: Tk. 2.00 Lac
Max: Tk. 50.00 Lac
For Medium enterprise:
Min: Tk. 50.01 Lac
Max: Tk. 150.00 Lac
Interest Rate:
As per Head Office advised from time to time.
Security/ collateral.
No mortgage up to Tk. 5.00 Lac

 Cow integrated Farm Loan:

 PURPOSE OF THE LOAN- To purchase cow and set up a Bio-gas Plant

 START YOUR ACCOUNT

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 Rural Entrepreneur(s)

 Tenor  Maximum 48 Months with 3 month

moratorium period.

 Age Limit  Minimum- 25 years

Maximum- 50 years

 Loan Amount  Min: Tk. 1.00 Lac

Max: Tk. 4.50 Lac

 ELIGIBILITY
 DOCUMENTARY REQUIREMENTS
 Proprietorship/Partnership/Individual
 3 (Three) Years successful operation of cattle rearing

Peak Season Loan:

 Potential customers involved in seasonal business including different festivals.

 PURPOSE OF THE LOAN

To meet up temporary working capital for purchasing inventory to produce/Sale bulk quantity
of product for targeting at peak season of the same business including different festivals.

START YOUR ACCOUNT

Trust Ekota specially designed for group of small entrepreneurs who are
deprived from bank loan facility

Tenor Maximum 6 Months

Minimum: 25 Years
Age Limit
Maximum: 60 Years
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For Small Enterprise

Min: Tk. 2.00 Lac
Max: Tk. 15.00 Lac
Loan Amount
For Medium Enterprise
Min: Above Tk. 15.00 Lac
Max: 25.00 Lac

As advised by the Head

Interest Rate
Office

Up to Tk. 5.00 Lac without

Security/Collateral
collatera

Trust Muldhan

Any Bangladeshi businessman having a proprietorship firm or engaged in partnership business

or private limited company

PURPOSE OF THE LOAN

To meet up working capital requirement

For expansion of existing business (Repair & Renovation, New Outlet & Building, additional
stocks).

START YOUR ACCOUNT

Any Bangladeshi businessman having a proprietorship firm or

engaged in partnership business or private limited company.

Maximum 48 Months with 6 Month

Tenor
Moratorium period

Age Limit Minimum: 25 Years

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Maximum: 60 Years

Loan for Shopkeeper

Min: Tk. 2.00 Lac
Max: Tk. 50.00 Lac
Loan Amount
Loan for Traders
Min: Tk. 50.01 Lac
Max: Tk. 500.00 Lac

As per Head Office advised from time to

Interest Rate
time.

 ELIGIBILITY

 DOCUMENTARY REQUIREMENTS

 Proprietorship/ Partnership/ PVT LTD Co.

 2 (Two) Years Experiences

Trust Nondini

START YOUR ACCOUNT

Any Bangladeshi Women Entrepreneur

Tenor Max Tenor 48 Months, 4 Month grace period

Age Limit Minimum- 20 years

Maximum- 55 years
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Loan Amount Small Ent: Mini: Tk 1.00 lac Max: Tk. 50.00 Lac for Funded

Medium Ent: Above Tk. 50.00 Lac to Tk. 150.00 Both

Funded and Non Funded Facilities.

Security/Collateral Not Required up to Tk. 25 Lac

Any Bangladeshi Women Entrepreneur

Tenor

Max Tenor 48 Months, 4 Month grace period

Age Limit

Minimum- 20 years
Maximum- 55 years

Loan Amount

Small Ent: Mini: Tk 1.00 lac Max: Tk. 50.00 Lac for Funded

Medium Ent: Above Tk. 50.00 Lac to Tk. 150.00 Both Funded and Non Funded Facilities.

Security/Collateral

Not Required up to Tk. 25 Lac

 ELIGIBILITY

 DOCUMENTARY REQUIREMENTS

 Proprietorship/ Partnership/ PVT LTD Co.

 2 (Two) Years Experiences

Trust Sukannaya

PURPOSE OF THE LOAN

Trust Sukannaya is a product under joint collaboration of Trust Bank and SME Foundation
specially designed for both individual and group (5-10 Member) of women entrepreneurs? of
Jessore and Chittagong Hill Tract Area.
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Trust Sukannaya is a product under joint collaboration of Trust Bank and SME
Foundation specially designed for both individual and group (5-10 Member) of women
entrepreneurs? of Jessore and Chittagong Hill Tract Area

START YOUR ACCOUNT

For purchasing machinery, expansion of clients existing business or to meet up

fund requirement for the business.

Tenor Max 48 Months including 6 Months Moratorium

Period

Age Limit Minimum- 20 years

Maximum- 55 years

Loan Amount For Individual

Min: Tk. 1.00 Lac
Max: Tk. 10.00 Lac

For a Group of Entrepreneur

Min: Tk. 2.00 Lac
Max: Tk. 5.00 Lac

Security/Collateral If required

 ELIGIBILITY

 DOCUMENTARY REQUIREMENTS

Manufacturing concerns, Agro Processing or Agro Based industry/ enterprise, Service

concerns (preferably ICT, Beauty Parlor, Gym, Catering, Day Care Center etc.)

 Proprietorship/ Partnership/ PVT LTD Co.

 2 (Two) Years Experiences

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Vermin Compost Loan

PURPOSE OF THE LOAN:

To process organic fertilizer for cultivation.

Loan for Vermin Compost

Purpose of the loan To process organic fertilizer for cultivation

Type of Facility Term Loan

Tenor Maximum 48 Months with 3 Month Moratorium period

Minimum- 25 years
Age Limit
Maximum- 55 years

 Vermin compost fertilizer production including 2(Two) cows – Tk. 2.90 Lac

 Only purchase of 2(Two) cows – Tk. 2.00 Lac

 Only produce vermin compost fertilizer – Tk. 0.90 Lac

Purchase
Set
Setup of
up Miscellaneous Total
Loan Amount house Vermin
Shed
(3 kg)

Tk. Tk. Tk.

Tk. 0.10
0.30 0.49 Tk. 0.010 Lac 0.90
Lac
Lac Lac Lac
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 ELIGIBILITY

 DOCUMENTARY REQUIREMENTS

 Proprietorship/ Partnership/ PVT LTD Co.

 2 (Two) Years of Experience in processing vermin compost

Loan for Solar Mini grid

PURPOSE OF THE LOAN:

For setting Solar Mini-grid plant to produce electricity to the rural dwellers, workshop or small
scale of commercial concerns where electricity yet to rich.

Loan for Solar Mini-grid

Purpose of the loan For setting Solar Mini-grid plant to produce electricity

Type of Facility Term Loan

Tenor Maximum 60 Months with 6 Month Moratorium period

Minimum- 25 years
Age Limit
Maximum- 55 years

Min: Tk. 50.00 Lac

Loan Amount
Max: Tk. 150.00 Lac

Security/Collateral Up to Tk. 5.00 Lac without Collateral

 Proprietorship/Partnership/ Cooperative Society

Eligibility
 3 (Three) Years of Technical Experience
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 Valid & Updated Trade License

 National ID

 TIN/VAT (if Req.)

 Opening of Bank, A/C before applying for loan

 Company Seal

 Photograph
Other Documents
 Personal Guarantee

 Corporate Guarantee of agency/MFI

 Guarantee of the managing committee of C.S

 Updated CIB

 Collateral Security (if Req.)

 Any other Documents (if Req.)

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Recommendation
Based on the above findings and analysis we can see that Trust bank Limited is a
growing bank. The growth of Trust bank, Dhanmondi branch has increased. All the
customers of Trust Bank like their products and services. Though Trust bank is basically
based on Army wellbeing and they take special care for Military clients, they are also
trying to establish their position in civil consumer’s mind. But from my perspective they
need to modify some of their strategies to attract more Nonmilitary customers with
advanced products and facilities to be the leading organization in banking sector of
Bangladesh.

 The number of Billboards of Trust Bank should increase in Dhaka city for
advertisement.

 Should open more branches around the country

 Attention should be given on proper maintenance of phone, computer, fax
machine and photocopier.
 The interest rate for different loans is also high in Trust bank. To sell more and
attract their customers they should reduce their rates and that can help them
make higher profit. Beside their Military clients they should also take care of
their Nonmilitary client by reducing their interest rates closer to the rates they
charged for Military clients.
 From my observation and talking with customers I got to know that
the customer of TBL has poor knowledge about online and mobile banking of
TBL. Bank should motivate them to follow and use online and mobile banking
systems.
 Although they are giving high standard product and services but still
their service charges are quite higher than other bank. Though for Military
clients the service charges are free but Trust bank should also lower their service
charges for Nonmilitary customers.
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Conclusion
Today the banking service is very competitive. Now bank offer the widest range of
financial services and perform many financial functions. Thus, banks have proven that they are
the key factor for the business and economy as well. Trust bank limited is one of the leading
private commercial bank in Bangladesh, dynamic in actions, honest in dealing, just in
judgement, fair in approaches, and devoted to high quality service to customers and
thereby contribute to the expansion of gross domestic product of the country.
Throughout stimulating trade and commerce, boosting up export, poverty alleviation, rising
standard of living of limited income group and overall socio economic development in the
country. Trust bank limited definitely satisfies their corporate customers and to
maintain this scenario in a more efficient and prospective manner the bank can surely accept
this project in a cordial manner.to enrich and maintain a better reputation is the only solution
to make a business more progressive.
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