This document provides an overview of Mutual Trust Bank Limited (MTBL) in Bangladesh. It discusses MTBL's shareholders, operating activities from 2011-2015 showing increasing loan amounts, analysis of financial ratios comparing to previous years and industry averages, and a presentation on stress testing and liquidity risk by several students with IDs. One student analyzes MTBL's interest rate risk and another analyzes the bank's credit grading procedures.

2. A Presentation on

3. Names ID
Pantho Sarker 20-033
Md. Gulam Kibria 20-075
Md. Touhidul Islam 20-077
Khaleda Easmin 20-087
Sheikh Sajid Hasan 20-181

4. Now Presenting …..
Md. Gulam
Kibria
ID: 20-075

5. OVERVIEW OF MUTUAL TRUST BANK
LIMITED
Corporate Highlights of MTBL
Type Private (Non-Government)
Industry Banking
Founded Dhaka, Bangladesh
Headquarters Dhaka, Bangladesh
Key people Anis A Khan (Managing Director
and CEO)
Products Banking services, Consumer
Banking, Corporate Banking,
Investment Banking, Islamic
Banking,
Net income Increase
Website mutualtrustbank.com
22%
13%
15%
50%
% of share holdings
Sponsors Financial Institutions General Shareholders Grand Total
Shareholding position of MTBL

6. OPERATING ACTIVITIES OF
MTBL
2011 2012 2013 2014 2015
Series1 47,005 56,511 59,548 77,141 97,589
47,005
56,511
59,548
77,141
97,589
0
20,000
40,000
60,000
80,000
100,000
120,000
AMOUNT(MILLION)
YEAR
Loan and Advances

7. ANALYSIS OF MTB’S PERFORMANCE WITH
FINANCIAL RATIOS
Ratios Present Ratio Changes from the
previous year
Industry ratio
ROE 17.8% 2.5% ↑ 8.1%
ROA .94% .11% ↑ .7%
NIM 2.2% .6% ↑ 1.8%

8. Now Presenting …..
Khaleda
Yeasmin
ID: 20-087

9. Ratios Present Ratio Changes from the
previous year
Industry ratio
PLL .46% .10% ↓ .56%
Loan Ratio 66.12% .69% ↑ 67.7%
Occupancy Ratio 64.4% 4.6% ↑ 46.5%
Ratios Present Ratio Changes from the
previous year
Industry ratio
Temporary
Investment Ratio
24.92% .90% ↑ 18.6%
Volatile liability
dependency ratio
-13.97% 1.41% ↑ -4.46%
ANALYSIS OF MTB’S PERFORMANCE WITH FINANCIAL
RATIOS

10.  The dollar gap is the difference between the dollar amount of interest-rate-
sensitive assets (RSA) and the dollar amount of Risk-sensitive-liability (RSL).
 Gap ($) = RSA($) -RSL($)
 Relative gap ratio =
𝐺𝑎𝑝$
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
 Interest-sensitivity ratio =
𝑅𝑆𝐴$
𝑅𝑆𝐿$

11. Dollar Gap = RSA - RSL -44325
Relative gap ratio (0.30)
Interest-sensitivity Ratio 0.5528
Change in NII for 2% increase in interest rate -886.5
As the company has a negative dollar gap ratio, Net interest income will fall if interest rate rises as shown above.
Net interest income would fall by TK. 886.5 million for a 2% increase in interest rate.

12. Now Presenting …..
Md.
Touhidul
Islam
ID: 20-077

14.  Interest rate risk is the potential that the value of the on-balance sheet and the off-
balance sheet positions of the bank/DFI would be negatively affected with the change
in the interest rates.
Given Information
Total Regulatory Capital 12,413.00
Risk Weighted Asset (RWA) 103,267
Capital Adequacy Ratio (CAR) before any shock 12.02%
Required 10.00%
Duration GAP
WDA 3.03
WDL 0.95
MVL 145345.91
MVA 119159.45
DGAP 1.88

16. Explanation to the result of MTB:
Scenario 1: In this particular scenario, the company will experience a minor level shock which will lead the CAR to
10.85% as par the analysis. This is above 10% which means the bank will have to do nothing.
Scenario 2: The Revised CAR will come to 9.69%. So, the bank has to increase its capital
Scenario 3: This is the extreme case of interest rate shock. Here, the CAR of MTB will be 8.52% which means it has to
increase its capital.

17. Now Presenting …..
Pantho
Sarker
ID: 20-033

18. Equity Price Risk-Fall in stock prices
Scenario 1 (Taka in
Million)
Scenario 2
(Taka in Million)
Scenario 3
(Taka in Million)
Magnitude of Shock 10% 20% 40%
Total exposure in stock market 1,951.99 1,951.99 1,951.99
Fall in stock prices & mutual fund 195.2 390.4 780.8
Tax adjusted loss 117.11 234.23 468.47
Revised Capital 12,328.32 12,211.2 11,976.96
Revised RWA 101,984.34 101,867.22 101,632.98
Revised CAR 12.09% 11.99% 11.78%
Fall in CAR 0.10% 0.20% 0.40%

19. Cumulative impact of Credit Shock (Aggregate of 5 types of Credit Shock)
Taka in Million
Cumulative impact of Credit Shock
(Aggregate of 5 types of Credit
Shock) Scenario 1 Scenario 2 Scenario 3
Tax adjusted provision 2,673.35 5,006.92 7,289.85
Revised Capital 9,772.09 7,438.53 5,155.60
Revised RWA 99,428.11 97,094.55 94,811.62
Revised CAR 9.83% 7.66% 5.44%
Fall in CAR 2.36% 4.53% 6.75%
Stress Testing
Mutual Trust Bank Limited
For the year ended 2015
(Taka in Million)
Regulatory capital 12,445.48
RWA 102,101.47
CAR 12.19%
Tax rate 40.00%

20. Exchange Rate Risk-adverse movement in exchange rate
Magnitude of shock
Scenario 1
Taka in Million
5%
Scenario 2
Taka in Million
10%
Scenario 3
Taka in Million
15%
Net exposure in FX (Short Position ) 1,454.09 1,454.090 1,454.090
Loss on exchange rate change 72.704 145.409 218.113
Tax adjusted loss 43.622 87,245,436 130.868
Revised capital 12,401.824 12,358.202 12,314.579
Revised RWA 102,057.846 102,014.224 101,970.601
Revised CAR 12.15% 12.11% 12.08%
Fall in CAR 0.04% 0.08% 0.11%

21. Now Presenting …..
Sheikh
Sajid Hasan
ID: 20-181

22. Cumulative impact of all Shock (Credit , interest rate, FE and equity price )
Cumulative impact of all Shock (Credit ,
interest rate,FE and equity price )
Scenario 1
Taka in Million
Scenario 2
Taka in
Million
Scenario 3
Taka in
Million
Tax adjusted provision/ loss 4,039.263 7,738.732 11,504.689
Revised Capital 8,406.184 4,706.715 940.757
Revised RWA 98,062.206 94,362.737 90,596.779
Revised CAR 8.57% 4.99% 1.04%
Fall in CAR 3.62% 7.20% 11.15%
Stress Testing
Mutual Trust Bank Limited
For the year ended 2015
(Taka in Million)
Regulatory capital 12,445.48
RWA 102,101.47
CAR 12.19%
Tax rate 40.00%

23. Liquidity shock-Fall in liquid Liabilities
Scenario 1 (Taka in
Million)
Scenario 2
(Taka in Million)
Scenario 3
(Taka in Million)
Magnitude of Shock 10% 20% 30%
Liquid Assets 81,918.23 81,918.23 81,918.23
Liquid Liabilities 33,028.18 33,028.18 33,028.18
Liquidity Ratio (%) 248.03% 248.03% 248.03%
Fall in Liquid Liabilities 3,302.82 6,605.64 9,908.45
Revised Liquid Assets 78,615.42 75,312.60 72,009.78
Revised Liquid Liabilities 29,725.36 26,422.55 23,119.73
Liquidity Ratio after shock(%) 264.47% 285.03% 311.46%

24. CREDIT GRADE PROCEDURES OF
MTBL
Before accepting loan proposal of potential borrower, the Mutual Trust Bank Limited assessed the credit risk of the
potential borrower according to Bangladesh Bank guideline.
Reference No.: MTB/Loan/2015 Date: 4/5/2017
Borrow er
Group Name (if any) N/A 76
Branch: N/A
Industry/Sector Telecommunication
Date of Financials 30.04.2014
Completed by Group 11
Approved by Group 11
Number Grading Short
1 Superior SUP
2 Good GD
3 Acceptable ACCPT
4 Marginal/Watchlist MG/WL
5 Special Mention SM
6 Substandard SS
7 Doubtful DF
8 Bad/Loss BL
CREDIT RISK GRADING SCORE SHEET
Grameen Phone Limited
Aggregate Score:
Risk Grading:
Acceptable
Score
Fully cash secured, secured by
85+
75-84
<35
65-74
55-64
45-54
35-44