2.1. Organization Overview
Mercantile Bank Limited emerged as a new commercial bank to provide efficient banking services with a view to improving the socio-economic development of the country. The philosophy of Mercantile Bank Ltd is not to ‘carry coal to the new castle'. The main target is to make credits available to the poor people and their activities are aimed at comprehensive growth where people from all economic strata will enjoy the benefits of better living standard, dignity of labor and self worth.
The Bank determined to build a long-term customer relationship with its corporate & general clients. As a part of this, Mercantile Bank ltd. is trying to expand their business with the market leaders of each sector of business. Mercantile Bank ltd. emphasizes not only on customer satisfaction but also emphasizes general banking and credit management system. So that customer can get better service from every side of overall banking.
Mercantile Bank Ltd is always ready to maintain the highest quality services by upgrading Banking technology, well management system and applying high standard of business ethics through its established commitment and heritage and is representing itself with true concept as ‘Banglar Bank’.
2.2 Historical background
Mercantile Bank Limited (MBL) has been incorporates on May 20, 1999and started its banking operation in June 2, 1999 as a private commercial Bank. It is a Bank of 21st century. Prime minister Sheikh Hasina inaugurates the Bank. The renowned 30 industrialists establish this Bank with everybody’s consent Mr. Abdul Jalil elected as the chairman. At the time of starting (2 June, 1999) MBL’s authorized Capital was BDT 800 million and Paid-up Capital was BDT 245 million.
At the end of the year 1999 the Bank earned an operating profit of BDT 20.14 million. The ratio was, Net Interest Margin 2.54%, Operating efficiency Ratio 82.45%, Earnings Base in Assets 97.55%, Capital Adequacy Ratio 28.83%.
Total deposit of the Bank as of December 1999 was BDT 3104.63 million and total Loan & Advance was BDT 871.46 million. The total Import and Export business handled by the Bank amounted to BDT 2096.20 million and BDT 1011.00 million during the end of that year. The performance of the Bank was very much satisfactory with its four branches during the seven months of its initial operation.
2.3 Nature of Business
The bank conducts all type of commercial banking activities and renders all types of personal and corporate banking services to the customers of all level of the society within the framework of the Bank Companies Act, 1991 and rules and regulations laid down by Bangladesh Bank from time to time, directives of other regulatory authorities. 2.4 Vision The vision of MBL would make finest corporate citizen. 2.5 Mission The mission of MBL will become most caring, focused for equitable growth based on diversified deployment of resources, and nevertheless would remain healthy and gainfully profitable Bank.
* To achieve positive Economic Value Added (EVA) each year. * To be market leader in product innovation.
* To be one of the top three financial institution in Bangladesh in terms of cost efficiency. * To be one of the top five financial institutions in Bangladesh in term of market share in all significant market segments we serve.
* To achieve 20% return on shareholder’s equity or more, on average.
2.7 Core Value
* For the customers
Providing with caring services by being innovative in the...