Mutual trust bank

Debt : May 2024

BIO has granted a USD 15 M loan to Mutual Trust Bank, a commercial bank in Bangladesh

Amount

$ 15,000,000.00

Type of investment

Debt

Development impacts

Local economic growth
Private sector consolidation/innovation
Gender

Beneficiary locations

Asia: Bangladesh

Investment field

Financial Institutions

Activity

KK.64.190 Commercial banking

Organisation

Mutual trust bank

Website

https://www.mutualtrustbank.com/

Domicile

Bangladesh

Mutual Trust Bank (MTB) is an innovative and robust commercial bank that was founded in 1999. Initially a wholesale bank, following the arrival of a new CEO in 2019, the bank has reshaped its strategy to focus more on Cottage, Micro, Small & Medium Enterprises (CMSMEs). End of 2022, the bank had funded 8,217 microentrepreneurs and 6,800 SMEs (45% of the funded companies are CMSMEs). MTB is among the country’s top banks, and has a pan-Bangladesh presence managing a network of 120 branches & 39 Sub branches, 200 Agent Banking Centers and 8 Air Lounges across the country.

Development impacts

Local economic growth
Increased lending to SME (currently around USD 224 M), with a focus on financing productive activities (ca. 92% of total portfolio). The use of BIO's funds will contribute to an increase in SME exposure. By offering non-financial services, MTB aims to double the number of people trained (from ca. 1,064 to 2,050).
Private sector consolidation/innovation
Supporting the best-in-class financial institution on the market in terms of digitalisation and efficiency. Helping MTB consolidate its strategy to become a more specialized SME bank with a clear focus on productive sectors and while improving its distribution channels and distribution of new products.
Gender
MTB is eligible on the 2X Consumption criteria ("MTB Angona" is a dedicated Women Banking department) and has demonstrated an intent to improve on the matter.