Internship Report on Credit Performance Analysis of Mutual Trust Bank PLC

Abstract

This report shows at the credit performance of Mutual Trust Bank PLCs over five years, from 2020 to 2024. It focuses on important credit indicators, like- classified loans, loan provisions, non-performing loan ratios, and capital adequacy to understand how well the bank is handling credit risks and overall financial ratios. The study found that classified loans went up and down, but overall increased, hitting the highest point in 2023 at BDT 6200 million, the improving a bit in 2024. The bank also increased its provisions for both classified and unclassified loans, showing that it was being careful due to rising credit risks. The NPL ratio reached its heights at 6.30% in 2023, showing some problems with loan recovery, but improved to 5.14% in 2024, meaning the bank made better efforts to recover loans. The Credit to Deposit Ratio (CDR) was highest in 2023 at 74.18%, which shows the bank was lending more, but in 2024 they reduced it a bit to keep a balance with liquidity. Profitability ratios like ROA and ROE went up and down, meaning the bank’s earnings and use of assets were not stable during these years. The Debt-to-Equity Ratio stayed between 2.53 and 2.61, which is stable, but a small increase in 2023 showed a bit more risk. The Capital Adequacy Ratio (CAR) stayed strong at around 20%, which meets the rules but shows little growth in capital. Loan growth was different each year, with the highest in 2023 at 12.50%, while loan loss provisions stayed about the same, showing the bank was trying to manage credit risk consistently. In short, the report shows that Mutual Trust Bank PLC had both challenges and improvements in managing credit risk. It needs to focus more on recovering loans, lending carefully, and building stronger capital to stay stable and grow in the future.