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CHAPTER–ONE
INTRODUCTION
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The banking system at independence consisted of two branch offices of the former State Bank of Pakistan
and seventeen large commercial banks, two of which were controlled by Bangladeshi interests and three
by foreigners other than West Pakistanis.
The government’s encouragement during the late 1970s and early 1980s of agricultural development and
private industry brought changes in lending strategies. Managed by the Bangladesh Krishi Bank, a
specialized agricultural banking institution, lending to farmers and fishermen dramatically expanded. The
number of rural bank branches doubled between 1977 and 1985, to more than 3,330.
Agrani Bank Limited, a leading commercial bank with 867 outlets strategically located in almost all the
commercial areas throughout Bangladesh It started functioning as nationalized commercial bank taking over assets and liabilities of the erst while
Habib Bank ltd and commerce Bank ltd. functioning in the East Pakistan.
In previous history Agrani bank, in pursuance of Bangladesh banks (nationalization) order 1972 (P.O.
No-26 of 1972)
Objectives of the Study (ABL):
Service first: To hold a prime & central focus in the bank’s operation.
Easier banking: To provide their customers with a comfortable & friendly environment & up to
date technology application.
Better relationship: To view banking to be a long term relationship with their customers to fulfill
their need & satisfaction.
Assured confidentiality: To assure our customers with up compromising commitment to transact
their financial activities with strict confidentiality & professional manner.
Good corporate governance: The dynamic board of directors of the Agrani Bank Limited hails
from different disciplines of business & industry.
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LIMITATIONS:
The objective of this study is to earn real life practical experience in Banking System. It requires long time
to acquire to the real experience. Time limitation is the main constrain in this respect. The lack of
available of data is another limitation. Maximum of banking activity are practical. . Just reading the
manual is not enough. To earn such practical experience, it requires working with those events.
The main limitations are as:
Time constrain
Banking employees are very busy. Sometimes it seems hard to get their attention
Lack of published relevant documents
Some information is confidential-not open to public.
Lack of website information to reach on any nice ending.
Facing hassle also to make communication with employees of the organization.
Within this limited period it is a bit tough to track all the facts accurately.
Scope and Methodology:
The study methodology included observation of their work procedure, analysis of their information input
forms and their output documents, face-to-face communication with the clients, interviews of relevant ABL
officials.
HRM system is indeed a tough job to find out. Because several people are involved with this process and
they differ from each other by their perception, experience, interest etc. With this process, there is another
part; the part is known as “Management”, what is a healthy organization from employee’s point of view.
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By preparing this paper we have to find out:
The steps involved with HRM.
Biasness towards the HRM.
Types of System.
Priority in Management.
Importance in organization.
We mainly got opportunity for internship in corporate branch Banga Bandhu Avenue which is used as
sources of information. Mostly information is collected from corporate branch Clearance, Advance and
Foreign Exchange division and it’s several Sections. So scope of this report is the banking activities and
accounting systems. So it is said that scope of this report is overall activities and accounting Policy and
practices of government bank on the light of ABL.
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CHAPTER–TWO
COMPANY OVERVIEW
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History of Banking System at Bangladesh:
The banking system at independence consisted of two branch offices of the former State Bank of Pakistan
and seventeen large commercial banks, two of which were controlled by Bangladeshi interests and three
by foreigners other than West Pakistanis.
The government’s encouragement during the late 1970s and early 1980s of agricultural development and
private industry brought changes in lending strategies. Managed by the Bangladesh Krishi Bank, a
specialized agricultural banking institution, lending to farmers and fishermen dramatically expanded.
The number of rural bank branches doubled between 1977 and 1985, to more than 3,330.
Denationalization and private industrial growth led the Bangladesh Bank and the World Bank to focus
their lending on the emerging private manufacturing sector. Scheduled bank advances to private
agriculture, as a percentage of sectored GDP, rose from 2 percent in FY 1979 to 11 percent in FY 1987,
while advances to private manufacturing rose from 13 percent to 53 percent.
The transformation of finance priorities has brought with it problems in administration. No sound project-
appraisal system was in place to identify viable borrowers and projects. Lending institutions did not have
adequate autonomy to choose borrowers and projects and were often instructed by the political
authorities. In addition, the incentive system for the banks stressed disbursements rather than recoveries,
and the accounting and debt collection systems were inadequate to deal with the problems of loan
recovery.
It became more common for borrowers to default on loans than to repay them; the lending system was
simply disbursing grant assistance to private individuals who qualified for loans more for political than
for economic reasons. The rate of recovery on agricultural loans was only 27 percent in FY 1986, and the
rate on industrial loans was even worse.
As a result of this poor showing, major donors applied pressure to induce the government and banks to
take firmer action to strengthen internal bank management and credit discipline. As a consequence,
recovery rates began to improve in 1987.
The National Commission on Money, Credit, and Banking recommended broad structural changes in
Bangladesh’s system of financial intermediation early in 1987, many of which were built into a three-year
compensatory financing facility signed by Bangladesh with the IMF in February 1987.
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Overview of the Company:
Agrani Bank Limited, a leading commercial bank with 867 outlets strategically located in almost all the
commercial areas throughout Bangladesh, overseas Exchange Houses and hundreds of overseas
Correspondents, came into being in 1972 immediately after the emergence of Bangladesh as an
independent state. It started functioning as nationalized commercial bank taking over assets and liabilities
of the erst while Habib Bank ltd and commerce Bank ltd. functioning in the East Pakistan.
In previous history Agrani bank, in pursuance of Bangladesh banks (nationalization) order 1972 (P.O.
No-26 of 1972) came into being in 1971 taking over the assets and liabilities of the east while Habib bank
ltd. And commerce bank ltd. Functioning in the then East Pakistan. The bank started operation with 249
branches with its head office in Dhaka. In principle, it changed its motto from class banking to mass
banking. As there had been poor banking structure and it failed to build sound banking infrastructure by
local entrepreneurs before independence and the newly born independent country was down with
enormous economic problem, the new govt. Agrani Bank being one of the largest nationalized commercial
bank must shoulder the responsibility of expanding its network in rural area. Presently bank has its 561
branches out of total 891 branches located in rural areas implementing as many as 29 programs targeting
rural people. During my internship at Agrani Bank Ltd, I was placed in the Principal Branch under Head
office of ABL. I enjoyed my total working with the young, skilled & professional employees and earn my
knowledge regarding financial and nonfinancial performance of ABL.
It has been privatized on 15th November 2007 and emerged as Agrani Bank Limited. The authorized
capital of the Bank is Tk. 800 crore.
Highlight of Agrani Bank Limited (ABL):
Establishment:
Agrani Bank Limited (ABL) is established in 1972. It is a state owned bank. It is formed by the
composition of ex-Habib Bank Limited and ex-Commerce Bank ltd.
Capital and Profit:
Agrani Bank Limited is a Bank with an Authorized Capital and Paid-up Capital of Tk.800.00 million and
Tk.248.00 million respectively. The total equity of the bank stands at 725.00 million as of December, 2010.
The total profit of last year is about Tk.680.00 million
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Branches:
There are about 903 branches in which 10 branches are corporate. There are about 341 town branches,
526 rural branches and 204 online branches.
Foreign Remittance:
Remittance services are available at all branches and foreign remittances may be sent to any branch by
the remitters favoring their beneficiaries. Remittances are credited to the account of beneficiaries
instantly through Electronic Fund Transfer (EFT) mechanism or within shortest possible time.
Credit Facilities:
The main focus of Agrani Bank Ltd. Credit Line/Program is financing business, trade and industrial
activities through an effective delivery system. Agrani Bank Ltd. offers credit to almost all sectors of
commercial activities having productive purpose. The loan portfolio of the Bank encompasses a wide
range of credit programs. Credit is also offered to major thrust sectors, as earmarked by the govt., at a
reduced interest rate to develop frontier industries. Credit facilities are offered to individuals including
housewives, businessmen, small and big business houses, traders, manufactures, corporate bodies, etc.
Vision:
To become a leading bank of Bangladesh operating at international levels of efficiency, quality
and customer service.
To be the best public commercial bank in Bangladesh in terms of efficiency, capital adequacy,
asset quality, sound management & profitability having strong liquidity.
To become the best leading state owned commercial bank of Bangladesh operating at international
level of efficiency, quality, sound management customer service and strong liquidity.
Mission:
The bank participates actively in socio-economic development of the country by performing commercially
viable and socially desirable banking functions. Mission of the Agrani Bank Limited can be given as
under:
To be the most caring and customer friendly provider of financial services, creating opportunities
for more people in more places.
To ensure stability & sound growth whilst enhancing the value of shareholders investments.
To aggressively adopt technology at all levels of operations to improve efficiency & reduce cost per
transaction.
To ensure a high level of transparency & ethical standards in all business transacted by the bank.
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To be solicitous about the welfare of society & strive ti uplift quality of life by serving philanthropy
& humanity.
We will go operating ethically and fairly within the stringent framework set by our regulators. We will go
fusing ideas and lessons from best practice to explore newer ways to stay stronger and more efficient,
nimble, and adaptable, and competitive as will. We will keep abreast of the advances of information and
communication technology for the benefit of our customers and employees. We will invest to strengthen
the future of the bank.
ABL Network of 905 Branches:
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Corporate Profile:
Agrani Bank Limited (ABL) was incorporated as a State Owned Commercial Bank on 17 May 2007 under the Companies Act 1994. Agrani Bank
emerged as a Nationalized Commercial Bank following the Bangladesh Banks (Nationalization) Order 1972 vide President’s Order No. 26
of 1972. On a going concern basis ABL took over the business, assets, liabilities, rights and obligations of Agrani Bank through a vendor’s
agreement signed on 15 November 2007 between the Ministry of Finance of the People’s Republic of Bangladesh & the Board of Directors
of ABL with retrospective effect from 1 July 2007.
Legal Status
Public Limited Company
Shareholding Patern
100 percent share owned by Government of the People’s Republic of Bangladesh
Chairman
Khondoker Bazlul Hoque, PhD
Managing Director & CEO
Syed Abdul Hamid, PhD, FCA
Company Secretary
Badal Chandra Dey
Registered Office
9/D Dilkusha, Dhaka 1000, Bangladesh
(1 crore is equal to 10 million)
Authorised Capital
Tk. 2,500.00 Crore
Total Deposits
Tk. 34,867.52 Crore
Paid up Capital
Tk. 2,072.29 Crore
Loans & Advances
Tk. 20,296.54 Crore
Operating Profit
Tk. 1,063.93 Crore
Total Equity
Tk. 3,564 Crore
Tax Identification No.
0022001223
Vat Registration No.
19011031730
Employee
14,005 (officer 10,458, staff 3,547)
Branch
899
Circle Office
11
Zonal Office
62
Authorised Dealer Branch
40
Corporate Branch
27
Number of Exchanges
56
Foreign Correspondent
396
Credit Rating
By CRISL (Rating Date: 7 October 2013)
Long Term
Short Term
Entity Rating 2012 (as Govt. Guaranteed Bank)
AAA
ST- 1
Surveillance Rating 2012 (Stand Alone Basis)
BBB
ST- 3
Surveillance Rating 2011 (Stand Alone Basis)
A+
ST- 2
Outlook
Stable
Subsidiary Companies in
Bangladesh
Agrani Equity & Investment Limited
Agrani SME Financing Company Limited
Subsidiary Companies in
Overseas
Agrani Exchange House Private Limited, Singapore (4 branches)
Agrani Remittance House Sdn. Bhd., Malaysia (4 branches)
Agrani Exchange Company (Australia) Pty. Limited
Agrani Remittance House Canada Inc.
Phone
+88-02-9566153-4, +88-02-9566160-9, +88-02-9566074-5
Fax
+88-02-9562346, +88-02-9563662, +88-02-9563658
SWIFT Code
AGBKBDDH
Website
www.agranibank.org
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Organ Gram:
The Board consist of 13(thirteen) directors. The members of the Board of Directors of the bank hold very
respective position in the society. They are from highly successful of group business & industries in
Bangladesh. Each member of Board of Directors plays a significant role in the socio- economic domain of
the country. An organ gram of Agrani Bank Limited can be given as under:
Chairman
Managing Director
Deputy Managing Director
General Managers
Deputy General Manager
Assistance General Managers
Senior Principle Officers
Principle Officers
Senior Officers
Officers/ Officers (Cash)
Attorney Assistants
Clerical Staff Members
Non- Clerical Staff Members
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Board of Directors:
Chairman
Khondoker Bazlul Hoque, PhD
Professor
Department of International Business
University of Dhaka
Directors
Arastoo Khan Prof. Dr. Md. Abdur Rouf Sardar
Additional Secretary Director
ERD, Ministry of Finance Bangladesh Medical College Hospital
Government of the People’s Republic of Bangladesh Dhanmondi, Dhaka
A.K. Gulam Kibria, FCA Shameem Ahsan
Senior Partner IT Specialist and Entrepreneur
G.Kibria & Co., Chartered Accountants
Engineer Md. Abdus Sabur Md. Altaf Hossain Molla
Engineer and Industrialist DIG of Police (Rtd.)
K.M.N. Manjurul Hoque Lablu A B M Kamarul Islam
Chief Editor & Managing Director Joint Secretary (Rtd.)
Global News Agency
Niaz Rahim Hasina Newaaz
Director Industrialist
Rahim Afrooz Group of Company
Advocate Balaram Podder Syed Abdul Hamid, PhD, FCA
Law Practitioner and Managing Director & CEO
Social Worker Agrani Bank Limited
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Growth of Agrani Bank
Key Indicators : From 1972 to 2013 BDT in Crore [1 crore is equal to 10 million]
Year
Deposits
Loans &
Advances
Classified
Loans
Import
Export
Foreign
Remittance
Operating
Profit
Net
Profit
Man-
power
No.of
Branch
Authorised
Capital
Paid up
Capital
Equity
1972
96
77
1
1
2267
249
5
1
1
1973
125
101
3
3
2363
283
5
3
4
1974
137
121
77
37
3
3
3517
289
5
3
5
1975
141
126
60
39
4
4
3561
305
5
3
6
1976
182
152
76
90
5
5
3770
351
5
3
6
1977
248
206
190
100
5
5
5074
510
5
3
6
1978
318
251
208
102
9
5
5
6672
602
5
3
7
1979
380
295
279
131
5
5
6981
690
5
3
7
1980
470
361
282
133
5
5
7901
775
5
3
7
1981
571
394
284
141
11
7
7
7460
775
5
3
7
1982
707
464
315
231
31
9
9
9334
776
5
3
7
1983
1027
662
502
289
86
12
12
10062
777
5
3
7
1984
1441
1031
863
470
182
17
17
10523
789
15
3.5
7
1985
1742
1286
891
538
316
32
32
11128
808
15
3.5
10
1986
1967
1466
901
509
430
28
28
11196
825
15
3.5
10
1987
2381
1650
1162
593
651
18
18
11237
851
15
3.5
11
1988
2625
1916
1106
735
757
13
13
12605
862
15
3.5
12
1989
3060
2248
660
1746
822
780
1
1
13213
870
15
3.5
12
1990
3187
2193
736
1285
1135
906
2
2
13152
881
800
106
116
1991
3667
2458
867
1277
1218
1183
0.02
0.02
13154
889
800
106
116
1992
4176
2650
930
1803
1724
1611
0.04
0.04
13143
891
800
106
116
1993
4512
3060
1230
2163
2129
1846
0.64
0.64
13915
895
800
248
278
1994
5250
3767
1292
3234
2853
2115
1
1
13981
899
800
248
278
1995
6344
4650
1620
4058
3590
2026
1
1
13789
903
800
248
278
1996
6713
4861
2023
2948
3510
2160
1
1
13952
903
800
248
279
1997
7301
5101
2433
2832
3520
2517
1
1
13486
903
800
248
279
1998
8278
5378
2846
3053
3521
2675
1
1
13530
903
800
248
280
1999
9079
5837
3005
2597
3472
2795
1
1
13341
903
800
248
316
2000
10053
7701
2937
3271
4202
3219
59
2
13320
903
800
248
325
2001
10671
8002
3000
2634
3743
3371
24
0.20
13058
901
800
248
333
2002
11547
8896
3144
3122
3458
3172
30
1.50
12901
891
800
248
340
2003
11743
8931
2641
2897
3575
2743
26
0.14
12514
872
800
248
340
2004
12538
9592
2692
3591
4197
3684
-75
-2172
12208
870
800
248
-1890
2005
13084
9940
2814
5119
4171
3457
214
163
11938
864
800
248
-1726
2006
12892
10587
2782
11592
5171
3930
358
194
11793
866
800
248
-1532
2007
13592
11849
3179
11343
4892
4281
526
316
11345
866
800
248
334
2008
14681
11336
2549
10952
4954
5269
633
265
10988
867
800
248
642
2009
16628
12224
2374
7753
4461
5587
644
111
11443
867
800
497
1144
2010
20633
16326
2102
16792
6443
7097
1086
352
11900
867
800
547
1572
2011
25221
19409
2149
26877
9310
8682
1474
250
12085
876
1000
901
2594
2012
29243
21266
5380
16963
8838
11681
1007
-1862
13890
889
2500
991
717
2013
34868
20297
3580
15947
7845
12657
1064
905
14005
899
2500
2072
3564
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Origin and Growth of Agrani Bank LTD:
Chairmans of the Board: From 1972 to 2013
Agrani Bank : As Nationalized Commercial Bank
Sl. No.
Name
From
To
1
M. Fazlur Rahman
02-01-1972
31-03-1981
2
Abdur Rahman Biswas
01-04-1981
04-05-1982
3
Prof. M. Safiullah
05-05-1982
04-05-1985
4
M. Matiur Rahman
05-05-1985
16-04-1986
5
Mir Ataul Haque Khandker
17-04-1986
21-01-1987
6
Imamuddin Ahmad Chaudhury
22-01-1987
14-12-1990
7
Mohd. Faizullah
15-12-1990
05-10-1991
8
L.K. Siddiqi
06-10-1991
22-09-1993
9
M. Hafizuddin Khan(Acting)
23-09-1993
03-01-1994
10
Dr. Fashiuddin Mahtab
04-01-1994
31-01-1996
11
Atauddin Khan
01-02-1996
18-07-1996
12
H. T. Imam
11-08-1996
10-08-1998
13
Md. Matiur Rahman
13-08-1998
21-06-2000
14
Abdul Hannan
22-06-2000
25-03-2001
15
Dr. Sohrabuddin
28-03-2001
12-11-2001
16
M. Ahsanul Haque
14-11-2001
12-11-2003
17
Sayed Mushtak (Acting)
19-11-2003
13-01-2004
18
Md. Fazlur Rahman
14-01-2004
26-11-2006
19
S.M.Jahrul Islam
19-12-2006
02-04-2007
20
Siddiqur Rahman Choudhury
23-04-2007
16-05-2007
Agrani Bank Limited : As State Owned Commercial Bank
1
Siddiqur Rahman Choudhury
17-05-2007
16-09-2009
2
Dr. Khondoker Bazlul Haque
17-09-2009
Onward
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Corporate Social Responsibility:
The role of business, in worldwide and especially in the developing countries, has evolved over the last
few decades from classical ‘profit maximizing’ approach to a ‘social responsible’ approach. There are
many reasons for shifting the role of business from classical concept to a social responsible approach.
Enterprises create wealth and job opportunities for the society and on the other hand, they pollute and
destroy environment and ecology with the devastating impact on human health and bio-diversity
worldwide. The concept of social responsibility of a company is recent phenomenon but many observers
agree that the globalization has spurred its growth and prominence.
Primarily Corporate Social Responsibility (CSR) starts with the consideration of social implications by
any corporate body which is ultimately reflected through its initiatives towards betterment of the
disadvantaged peoples of a society.
As such in broadly defining, CSR refers to the voluntary role of business towards building a better society
and cleaner environment beyond its financial commitments and regulatory obligations. Considering
importance of CSR, Bangladesh Bank since June 2008 has officially started encouraging towards
mainstreaming CSR in banks and financial institutions of Bangladesh. As a stakeholder of the society,
Agrani Bank Limited is keen to augment CSR activities gradually in the days to come.
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Education:
Like the previous years, ABL has donated a good amount to various educational institutions.
In the year, the Bank donated Tk. 143.31 lac to 66 beneficiaries. These helps were extended
for renovation or construction of building/ class rooms of different schools, colleges,
universities, libraries etc.; giving stipend to the poor meritorious students; sponsoring
various seminars, conferences, convocations, alumni, anniversaries, drama festivals,
competitions, training programs; observing important national days etc.
With a view to providing a smooth interface between student life and professional life, ABL
offers internship facility to the BBA and MBA passed students of different universities. The
interns were granted the opportunities to groom with us in a truly professional, dynamic and
challenging corporate environment
Health Care:
Access to healthcare facilities is one of the fundamental rights of every human being.
However, most of our people, especially the underprivileged group has little or no access to
health care facilities. However, ABL is committed to assist those poor people, who have no
way to secure basic treatment. During the year 2013, the Bank has given financial assistance
from its CSR fund a sum of Tk. 154.04 lac to 139 beneficiaries to ease their miseries.
Disaster Relief:
ABL’s lending policies with regard to environmental management are responsive to
emergency support needs of population groups affected by natural and man made disasters.
During the year 2013, the Bank has spent Tk. 262.15 lac for the donation of 25,364 blankets
to the cold stricken poor people of the country in the districts of Rangpur, Dinajpur,
Thakurgaon, Gaibandha, Kurrigram, Panchagarh, Mymenshingh, Pabna, Sylhet and in the
Dhaka city as well.
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Concern for the Environment:
In the year 2013, the Bank contributed 3.00 lac to –‘Make Rajshahi Green Project’; 10.00
lac to Hatirjheel Project, 60.00 lac for distribution of seedlings and 5.50 lac for tree
plantation & exhibition. Total value was 80.50
lac against 5 beneficiaries. Today our planet is
exposed to a severe environmental catastrophe
than ever before. ABL’s corporate social
responsibility contributes generously to the
development of Green Banking. Protection and
thus nourishing the environment is part of
ABL’s investment principle. Environmental
issues are taken into account while the Bank is
assessing credit proposal for the industrial
projects.
As a humble effort to reduce environmental pollution, the Bank is financing CNG refueling
stations. Besides, most of office vehicles of the Bank have already been converted to CNG
fueling system.
Sports:
In the year 2013, the Bank has donated TK. 76.90 lac to 6 beneficiaries of different football
and hockey clubs and tournaments for the promotion of games and sports. ABL has its own
football team that has been participating in the
national football league relentlessly since
independence. In several times the team defeated
renowned clubs of the country like Mohammedan,
Abahone, Brothers Union etc. The Bank has also a
cricket team of its own that has been participating
in the First Division Cricket League since
independence. The team frequently succeeds to
keep its ranking position from three to five in the
league. A good number of cricketers and
footballers are playing in the national and
international levels who were once member of ABL
sports team.
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Award:
.
Syed Abdul Hamid, Managing Director and CEO of Agrani Bank Limited is receiving awards from the
Honorable Minister for Commerce, Government of the People's Republic of Bangladesh, Muhammad Faruk
Khan, MP
Syed Abdul Hamid, Managing Director and CEO of Agrani Bank Limited is receiving awards from the
Honorable Finance Minister Abul Maal A. Muhith MP.
Honorable governor of Bangladesh Bank(Central bank of Bangldesh) Dr. Atiar Rahman handing over
the 'Best Remittance Service Award' to Salma Begum, Dhaka University held in Bangabandhu
Convention Center on 10th August ,2009.
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CHAPTER–THREE Project Part
A) Clearing & Cash Section
B) General Banking
C) Loan & Advance Section
D) Foreign Exchange Section
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Details of Internship Work:
Banking system and management is different from other working place. Here we had got a
great opportunity to do work with young and experienced employee. They are very helpful
and give us various information about banking work which is very important for complete
our report properly. Now we will try to inform about our details of internship work.
In Agrani Bank limited use TemenosT24 for Universal Banking Software. It mainly works in
all general banking.
Figure 1.1: TemenosT24 for Universal Banking Software
This software mainly use specific employee for their specific work. Every specific employee
has specific password and username for their own work. Every work is set separately in this
software and for this reason all can use it easily.
Figure 1.2: TemenosT24 log in page.
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General banking is the heart of all business banking activities. General banking department
performs the core function of bank operates the day-to-day transactions. It is the storage
point of all kinds of transaction of foreign exchange department, loans and advance
department and itself.
Clearing & Cash Section
Clearing:
We mainly got opportunity to do work in Clearing& Cash section, Loan & Advances section
and Foreign Exchange section We will try to describe those are in below.
Generally Clearing and Cash section is an important section of General Banking. This is the
section through which branch has to clear it’s inter branch and inter-bank transaction.
Customers do pay and receive the collecting branch the system is known as IBCA.
Clearing Sessions:
High Value
High Value (return house)
Regular
Regular (return house)
CLEARING
INWARD OUTWARD
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Inward Clearing (at branch):
Receive clearing instruments from system
Verify clearing stamp, crossing, endorsement etc
Debiting respective account
Ensure honor/dishonor in the system
Corresponding with main branch (if necessary)
Outward Clearing (at branch):
Receive clearing instrument form the clients
Crediting the same in respective account
Prepare instruments of clearing
Scanning & transfer to the system
Inward Bills for Collection (IBC)
In this case bank will work as an agent of the collection bank. The branch receives a
forwarding letter and the bill. Next steps are:
Entry in the IBC register, an IBC number given.
The instrument is sent to clearing for collection.
An IBC is dispatched in this regard. If dishonored: in this case the instrument is
returned to the collecting branch along with return Memo indicating the cause of
dishonored.
Outward Bills for Collection (OBC)
Customers deposit cheque, drafts etc. for collection, attaching their deposit slip. Instruments
within the range of clearing are collected through local clearinghouse. But the other, which
is outside the clearing range, is collected through OBC.
Procedure of OBC
Entry in the OBC register
Put OBC number in the cheque
“Crossing seal” on the left corner of the cheque & ‘payees account’ will be credited on
realization “seal” on the back of the cheque with signature of the concerned officer.
Dispatch the OBC cheque with forwarding
Reserve the photocopy of the cheque, carbon copy of the forwarding & deposit slip of the
cheque in the OBC file.
Inward Bills collection: When the banks collect bills as an agent of the collecting branch, the
system is known as IBC. The branch receives forwarding letter and the bill.
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Procedure of IBC
IBC against OBC: To receive the OBC cheque first we have to give entry in the OBC
register. The IBC number should put on the forwarding of OBC with date.
Deposit of OBC amount: OBC cheque amount is put into the “sundry deposit- sundry
creditors account”, prepare debit & credit voucher of it. If the OBC cheque is honored,
send credit advice (IBCA) with signature & advice number of the concern branch for the
OBC amount.
If the OBC cheque is dishonored, the concerned branch is informed about it.
Again place in the clearing house or send the OBC cheque with Return Memo to the
issuing branch according to their information.
Cash Section:
In Banking Cash section is an important section where cash transactions are made. Cash
sections demonstrate liquidity strength of a bank. It is also sensitive as it deals with liquid
money. Maximum concentration is given while working on this section. Tense situation
prevails if there is any imbalance in the cash account. There are various systems maintain by
cash officer that is under:
Vault
Cash Payment
Cash Receive
Transaction after banking hour.
When clients deposit cash in the bank, the bank officer on receipt of the cash and the pay in
slip/credit voucher shall:
Check and count the received cash.
Make sure that the amount in word and number in the deposit slip are
same.
Check the account title and the number.
Both the deposit slip is in order.
Depositor’s signature is in the slip.
Receive seal in the slip is a must.
Write the domination of the currency at the back of the pay in slip or the
credit
Check of it is an open or crossed check.
The branch name in the cheque..
Tk in words and figure of the cheque is same.
Balance in the account is avail e.
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Books maintained by cash department
Vault Register:
Cash Receive Register:
Cash Payment Register:
Daily Cash Balance Register:
Banking is the business of correspondence. Lot of mail comes to the bank and dispatch from
the branch daily. Loss of any document causes much loss for bank. That is why bank has to
record all mail received and dispatched through the bank.
Mail Receiving
All mail comes to the bank recorded in this desk. For this reason a register book maintained
called inward mail register. A number is given on receiving mail and records particulars of
document in the register book.
Mail Dispatching
Before dispatching mail from the bank, it must record in outward mail register. A number is
given on the mail. Destinations, date of dispatch are recorded in that register book
General banking
General banking department is the heart of all banking activities. This is the busiest &
important department of a branch, because funds are mobilized, cash transactions are made
& clearing activities are done here. Science bank is confidence to provide the services
everyday, general banking is also known as retail banking. Following departments are under
general banking section:
Deposit section
Account opening section
Cash Section
Local remittance section
Inward and outward clearing section
Accounts department
Loan and advance department
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Deposit Section:
Deposit is the lifeblood of a bank. Form this history and origin of the banking system, we
know that deposit collection is the main function of a bank.
Accepting deposits:
The deposits that are accepted by Agrani Bank Limited like other banks may be classified
into-
Demand deposits
Time deposits
Demand deposits: These deposits are withdrawn able without notice, i.e. current deposits.
Agrani Bank Limited accepts demand deposits through the opening of:
Current account
Saving account
Call deposits from the follow bankers
Time deposits: A deposit which is payable at a fixed date or after a period of notice is a time
deposit. Agrani Bank Limited accepts time deposits through Fixed Deposit Receipt (FDR),
Short Trem Deposit (STD) and Beard Certificate Deposit (BCD) etc. While accepting these
deposits, a contract is done between the bank and the customer. When the banker opens an
account in the name of a customer, there arise contracts between the two. This contract will
be valid only when both the parties are competent to enter into contracts. As account opening
initiates the fundamental relationship and since the banker has to deal with different kinds of
persons with different legal status, Agrani Bank Limited officials remain very much careful
about the competency of the customers.
Account opening section:
Account opening is the gateway for clients to enter into business with bank. It is the
foundation of banker customer relationship. This is one of the most important activities of a
branch, because by opening accounts bank mobilize funds for investment. Various rules &
regulations are maintained & various documents are taken while opening an account. A
customer can open different types of accounts through this department. Account opening
procedures:
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Step-
1
The account should be properly introduced by any of the following:
An existing current account holder of the bank
Officials of the bank not below the rank of assistant officer
A respectable person of the locality well known to the manager/sub manager
of the branch concerned.
Step-
2
Receiving filled up application in banks prescribed monitoring what type of
account is desired to be opened.
Step-
3 The form is filled up by the applicant himself/herself
Two copies of passport size photographs from individual are taken in case of
firms photographs of all partners are taken.
Applicants must submit required documents
Application must sign specimen signature sheet & give mandate.
Introducer’s signature & a/c number verified by legal officer.
Step-
4
Authorized officer accepts the application.
Step-
5
Minimum balance is deposited only cash is accepted
Step-
6
Account is opened & a cheque book & pay in slip book is given.
Step-
7
Letter issue for the verification of the customer into 1000 Minimum Deposit.
Papers/Documents Required for Opening Account
A. For Individual/Joint Account:
B. For Partnership Account:
C. For Limited Company:
D. For Club/Societies:
For Individual/Joint Account:
Introduction of the Account.
Two photographs of the Signatory/Signatories duly attested by the introducer.
Identity (copy of Passport/Chairman Certificate/TIN/Voter ID/T&T/Employee
Certificate, Student ID, National ID, Driving License, provided by the Bank.
Joint Declaration Form (For Joint A/C only).
For Partnership Account:
Introduction of the Account.
Two photographs of the Signatory/Signatories duly attested by the introducer.
Partnership deed duly signed by the all Partners to open & operate the account (Sign
should be similar as stated in Partnership deed).
Partnership deed certified copy by Notary Public (Deed should be written in Bond of
Tk. 500/= if the capital is Tk. 25,000/=, but if the capital exceed Tk. 25,000/=, bond of
Tk. 1000/= is required).
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Registration (if any).
Rubber Stamp.
Updated Trade License.
ID/Copy of passport
Cautions: Same as Joint/Individual Account.
For Limited Company:
Introduction of the Account.
Two photographs of the Signatory/Signatories duly attested by the introducer.
Valid Copy of Trade License.
Board Resolution of opening A/C duly certified by the Chairman/Managing Director.
Certificate of Incorporation.
Certificate of Commencement (In case of Public Limited Company).
Certified (Joint Stock) true copy of the Memorandum and Article of Association of the
Companies (In case of Directorship Change) duly attested by Chairman or Managing
Director.
List of Directors along with designation & specimen signature.
Latest certified copy of From-XII (to be certified by register of Joint Stock Companies)
(In case of Directorship Change).
Rubber Stamp (Seal with designation of each person).
Certificate of registration (In case of Insurance Company- Obtained from Department
of Insurance from the Peoples Republic of Bangladesh).
Cautions: Same as Joint/Individual Account.
For Club/Societies:
Introduction of the Account.
Two photographs of the Signatory/Signatories duly attested by the introducer.
Board resolution of Opening A/C duly certified by President/Secretary.
List of Existing Managing Committee.
Registration (if any).
Rubber Stamp.
Permission Letter of Bureau of N.G.O (In case of N.G.O A/C).
Cautions: Same as Joint/Individual Account.
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Cash Section:
Cash section demonstrates liquidity strength of a bank. It also sensitive as it deals with liquid
money. Maximum concentration is given while working on this section. As far as safety
concerned special precaution is also taken.
Cash Receipt:
At first the depositors fill up the Deposit in the Slip. For saving account and current account
Different Deposit in Slip is used in this Branch.
After filling the required deposit in slip, depositor deposits the money.
Officers at the cash counter receives the money, count it, enter the amount of money in
the register kept at the counter, seal the deposit in slip and sign on it with date and keep
the bank’s part of the slip. Other part is given to the depositor.
All deposit slip of saving; Current and STD A/C are maintained in accounts section.
Cash Payment:
Cash payment of different instruments is made in the cash section. Procedure of cash
payment against check is discussed below elaborately. Cash payment of check includes few
steps.
First of all client comes to the counter with the check and give it to the officer in charge
there. The officer checks whether there are two signatures on the back of the check and
checks his balance in the computer. After that the officer will give it to the cash in charge.
Then the cash in charge verifies the signature from the signature card and permits the
officer in computer to debit the client’s account by giving posting. A posted seal with
teller number is given.
If the signature matches with the one given previously then the teller will make payment
keeping the paying check with him while writing the denomination on the back of the
check.
Cash paid seal is given on the check and make entry in the payment register.
There are few things that shall be scrutinized and checked before making payments.
Name of the drawer.
Account number.
Specimen signature.
The validity of the check and make it sure that it is not post dated or undated.
The amount in words and figures are same.
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Cash Balance Calculation:
The officer in charge of cash section does the calculation and then Sub-manager or
authorized officer will check the balance and sign in the cash balance book. The balance is
maintained in the balance book. Opening balance of current day is the closing balance of
the previous day. Total receive of the current day is added with the opening balance and
total payment is deducted for calculating the closing balance or cash balance.
Cash Packing and Handling:
Cash packing and handling needs a lot of care as any mistake may lead to disaster. Packing
after banking hour when the counter is closed, cash are packed according to denomination.
Notes are counted several times and packed in bundle, stetted and stumped with initial.
Local remittance section:
Local carrying cash money is troublesome & risky, that’s why money can be transferred from
one place to another through banking channel. This is called remittance. Remittance of funds
is one of the most important aspects of the commercial banks in rendering services to its
customers. The main instruments used by the Agrani Bank Limited of remittance of funds are:
Pay Order:
A pay order is a written under, issued by a branch of the Bank, to pay a certain sum of money
to a specific person or a bank. It may be said as to be a banker’s cheque as it is issued by a
bank and payable by itself.
Issuance-
1. The application form must be filled up properly.
2. Commission to be calculated as the Bank’s rules as per amount.
3. Total amount due must be paid by the customer at the cash receive counter, after
receiving the cashier will issue a voucher to the PO issue department.
4. The pay order is prepared and entered in the PO issue register. The PO number is then
written on the application form.
5. The vouchers along with the instrument and register are then sent to the department- in
– charge for checking and signature.
6. Then all the documents are sent to the branch in-charge for second signature.
7. After all signatures are complete, the pay order draft is given to the customer and
his/her signature must be taken on the PO issue register.
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Demand Draft (DD):
This is an instrument through which customers money is remitted to another
person/Firm/organization in outstation (outside the clearing house area) form a branch of
one Bank to an outstation branch of the same Bank or to a branch of another Bank( with
prior arrangement between that Bank with the issuing branch).
This is an order instrument in which the issuing branch gives instruction to the payee/drawer
branch to pay certain amount of money to the order of certain person/firm/organization. The
payee/Drawer branch on receipt of the message, decodes the tested message and being fully
satisfied, pay the amount by crediting the payees account (if account is maintained with the
payee branch). Telegraphic transfer may also be issued favoring the beneficiary who
maintains account with other banks. In such case the payee branch issues pay order favoring
the payee and handover the P.O the concerned Bank branch for effecting payment to the
payee.
Issuance:
1. Filling of DD application form. (This form is treated as an application as well a Voucher)
2. Commission to calculated as per BB rate and written on the space provided on the form.
3. Total amount due must be paid by the customer at the cash receive counter, after receiving
the cashier will issue a voucher for the DD issue department.
4. The Draft is prepared and entered in the draft issue register. The draft number is then
written on the application form and the amount is protecting graphed on the face of the draft.
5. The vouchers along with the instrument and register are then sent to the department-in-
charge for checking and signature.
6. Then the entire documents are sent to the branch in-charge for second signature.
7. After all signatures are complete, the draft is given to the customer and his/her signature
must be taken on the counter foil.
8. Preparing advice: an IBCA (For demand draft only) must be prepared, starting the details
of the issued draft and must be sent to Drawer Branch; on the same day.
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Telegraphic Transfer (TT):
A Telegraphic Transfer is a method of remittance, which is effected by the banker through a
coded telegram attested by secret cheek signal, on receipt of which, the paying office pay the
amount to the payee by crediting his account.
Issuance:
1. Filling of TT application form. (This is treated as an application as well as a voucher).
2. Commission to calculated as per BB rate and written on the space provided on the form.
3. T.T Charge is taken from the customer based on the amount.
4. Total amount due must be paid by the customer at the cash receive counter, after receiving
the cash cashier will issue an IDT voucher for the TT issue department.
5. A cost memo must be prepared by the TT issuing department, which shall contain the
amount of TT, name of beneficiary, commission amount. The memo must be duly signed by
the officer, and given to the customer.
6. Then the T.T should be tested correctly, by authorized officer only.
7. Then pass the T.T message through Telex, or incase of urgency may be conveyed through
telephone, Online T.T System, by Online.
8. Prepare the advice note is automatically by the software.
Other Local remittance section:
Agrani Bank Limited, being a state owned Bank, has both commercial commitment to its
clients and societal commitment to the nation. Besides catering service to its clients at
nominal fees/charges the bank has to provide services, in respect of transferring money to
different organizations and groups of professionals in far flung areas through its branches in
urban and rural areas all over Bangladesh. Here below are a few of such services Agrani
Bank Limited provides:
Locker service:
For safekeeping of customers' valuables like important documents and goods like jewelries
and gold ornaments, Agrani Locker Service is available in most of the Branches in urban
areas.
Nature of Service Nature of Charges Rate of Charges
Custody of Locker / Safe
Rent
a) Yearly TK.900/= for small size
locker
b) Yearly TK.1200/= for medium
size locker
c) Yearly TK.1800/= for big size
locker
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Maximum number of people carries saving accounts
Agrani Bank Limited is the largest & oldest public bank in Bangladesh. They have huge
number of accounts holders under various accounts.
Table: percentage of accounts
A/C Name Percentage of accounts
Saving A/C 60%
Current A/C 20%
FDR A/C 10%
STD A/C,R/D A/C 10%
Graph: Percentage of accounts
The above graphical presentation shows that 60% customers are maintaining saving a/c in
Agrani Bank Limited. Another 20, 10 and 10 percentage people respectively maintaining
Current A/C, FDR A/C, STD A/C.
% of accounts
% of accounts, 20%
% of accounts, 10%
% of accounts, 10%
% of accounts, 60%
Saving A/C
Current A/C
FDR A/C
STD A/C
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Loan & Advances Section
This is the survival unit of the bank until & unless the success of this department is attained,
the survival is a question to every bank. If this section does not properly work the bank it may
become bankrupt. This is important because this is the earning unit of the bank. Banks are
accepting deposits from the depositors in condition of providing profit to them as well as safe
keeping their interest. Now the question may gradually arise how the bank will provide profit
to the clients & the simple answer is- loans & advance.
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Process of Loan:
There are some specific rules for loan. If anyone wants to get a lone in Agrani Bank Limited
then they need to follow those rules:
Application
Applicant applies for the loan in the prescribed form of the bank describing the types and
purpose of loan.
Credit Approval Procedure
After receiving the application from the client, official prepares a Credit Line Proposal
(CLP) and forwards the same to the Head Office. To place before Head Office Credit
Committee (HOCC) for approval it includes
Request for credit limit of customer.
Project profile/profile of business.
Copy of trade license duly attested.
Copy of TIN certificate
Certified copy of Memorandum of Association, Articles of Association,
Certificate of Incarnation, Certificate of Commencement of Business, and
Resolution of the Board, Partnership Deed (Where Applica)
3 years Balance Sheet and Profit & Loss account.
Personal net worth statement of the owner/directors/partners etc.
Valuation certificate of the collateral security in Bank’s form with
photograph of security.
CIB inquiry form duly filled in (for proposal of above 10lac.)
Declaration of the name of the sisters concern and their liability.
Incase of L/C detailed performance of L/C during last year.
Therefore, the steps in lending can be sum as follows,
Entertainment of application for loan proposal.
Preliminary screening of credit proposal.
Feasibility study & appraisal of loan proposal or credit investigation.
Sanction of loans or advances.
Disbursement of loans or advances. Sanction
a. Collecting credit information about the applicant to determine the credit worthiness of
the borrower Sources of information.
i. Personal Investigation, Confidential Report from other bank, Head
Office/Branch/Chamber of Commerce.
ii. CIB (Central Information Bureau) report from Central Bank.
b. Evaluation of compliance with its lending policy.
c. Evaluating the proposed security
d. If loan amount exceeds 50lac then bank goes for LRA Analysis & LRA is must for the
loan exceeding one crore – as ordered by Bangladesh Bank.
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Loan Classification:
Loan classification is a process by which the risk or loss potential associated with the loan
accounts of a bank on a particular date is identified and quantified to measure accurately the
level of reserves to be maintained by the bank to provide for the probe loss on account those
risky loan.
All types of loans of a bank are fall into following four scales:
Unclassified: Repayment is regular
Substandard: Repayment is stopped or irregular but special collection efforts may result in
partial recovery.
Doubtful Debt: Unlikely to be repaid but special collection efforts may result in partial
recovery.
Bad/Loss: Very little chance of recovery
Types of Loans and Advances
Depending on the various nature of financing, all the lending activities have been brought
under the following major heads:
1. Continuous loan
2. Term loan
3. Demand loan
4. Loan under SME
Continuous loan:
SOD (FO)
Advance is granted to a client against financial obligations. The security of advance is
granted to the person to whom the instrument belongs. The discharged instrument is
surrendered to the bank along with a letter signed by holder/holders. The bank’s lien is
prominently noted on the face of the instrument under the signature of an authorized bank
official.
Interest rate is 14% to 16%.
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SOD (G)
Granted against the work order of government departments , corporation’s autonomous
bodies. To arrive at logical decision, the client’s managerial capability, equity strength,
nature of scheduled work is to be judged. Disbursement is made after completion of
documentation formalities, besides usual charge, documents like a notarized irrevocable
power of attorney to collect the bills from the concerned authority and a letter from the
concerned authority confirming direct payment to the bank is also obtained. The work is
strictly monitored to review the progress at each interval.
Interest rate is 14% to 16%
Cash Credit (Hypothecation)
The mortgage of movable property for securing loan is called hypothecation. Hypothecation
is a legal transaction where by goods are made available to the lending banker as security
for a debt without transferring either the property in the goods or either possessing. The
banker has only equitable charge on stocks, which practically means nothing. Since the
goods always remain in the physical possession of the borrower, there is much risk to the
bank. So, it is granted to parties of undoubted means with highest integrity.
Interest rate is 16%
Cash Credit (Pledge)
Transfer of possession in the judicial sense of essential in the valid pledge. In case of pledge,
the bank acquire the possession of the goods or a right to hold goods until the repayment for
credit with a special right to sell after due notice to the borrower in the event of non-
repayment.
Interest rate is 16%
Term loan:
House Building Loan
This loan is provided against 100% cash collateral, besides; the land & building are also
mortgaged with the bank
Interest rate is 17%.
Loan (general)
Agrani Bank Limited considers the loans, which are sanctioned for more than one year as
loan (g). Under this facility, an enterprise of financed from the stating to its finishing, i.e.
from installment to its production. Agrani Bank Limited offers this facility only to big
industries.
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Demand loan:
Loan against Imported Merchandise (LIM)
Advances allowed for retirement of shipping documents and release of goods imported
through L/C taking effective control over the goods by pledge fall under this type of advance,
when the importer failed to pay the amount payable to the exporter against import L/C, than
Agrani Bank Limited gives loan against imported merchandise to the importer. The importer
will bear all the expenses i.e. the go down charge, insurance fees, etc. and the ownership of
the goods is retaining to the bank. This is also a temporary advance connected with import,
which is known as post import finance.
Interest rate is 16%
Loan against Trust Receipt (LTR)
Investment allowed for retirement of shipping documents and release of goods imported
through L/C fall under this heard. The goods are handed over to the importer under trust
with the arrangement that sale proceeds should be deposited to liquidate the investments
within a given period .This is also a temporary investment connected with import and know
as post-import finance and falls under the category "Commercial Lending".
Interest rate is 16%
Loan documentary Bill Purchase (LDBP)
Payment made against documents representing sell of goods to local export oriented
industries, which are deemed as exports, and which are deemed as exports, and which are
dominated in local currency/foreign currency falls under this head. The bill of exchange is
held as the primary security. The client submits the usance bill and the bank discounts it. This
temporarily liability is adjustable from the proceeds off the bill.
Interest rate is 16%
Inland Bill Purchase (IBP)
Payment made through purchase of inland bills/cheques to meet urgent requirement of the
customer falls under this type of investment facility. This temporary investment is adjustable
from the proceeds of bills/cheques purchased for collection. It falls under his category
"Commercial Landing"
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Loan under SME:
Consumer Credit Scheme
This scheme is aimed to attract consumers from the middle and upper middle class
population with limited income. The borrower should have saving or current deposit account
with the bank. Minimum 25% of the purchase cost of the product is to be deposited be the
borrower with the bank is equity before the disbursement of the loan. The rest 75% is to be
kept as cash collateral (FDR, Shanchay Petra etc.) with the bank. The purchased items are
hypothecated with the bank. The disbursement of the loan is effected by debiting loan
(general) account to the opened in the same of the borrower. Loan amount is disbursed
through a/c payee pay order/demand draft directly to the seller after submission of the
indent, deposit of client equity and completion of documentation formalities. The bank
obtains post dated a/c payee cheques drawn in favor of the bank for the monthly installments
covering the lending period from the borrower and the loan amount is adjusted on the due
date of installments.
Growth of SME Lone:
Working Credit
Loans allowed to the manufacturing unit to meet their working capital requirement,
irrespective of their size big, medium or large fall under the category.
House Repairing/Renovation Loan Scheme
This loan is offered for renovation and modernization of the house/building/flat which are
acquired by inheritably or purchasing and other ways to make the properties liable and
durable.
Interest rate is 16%
Personal Loan for Salaried Person
This loan is provided to fixed salaried persons in various organizations to meet any
emergency cash needs at various events- treatment/operations of critical disease,
matrimonial, maternity expenditure etc.
Interest rate is 17%. And maximum credit ceiling is Tk 1, 00,000/-
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Small Business Loan Scheme
This loan is offered to the small and promising entrepreneurs to meet their capital
requirement and enable them to operate and expand the business purposely.
Maximum credit ceiling is Tk 5.00 lac with interest rate is 16%.
Foreign Exchange Section
Foreign Exchange refers to the process or mechanism by which the currency of one country
is converted into the currency of another country. Dr. Paul Einzing defines “Foreign
Exchange as the system of process of converting one national currency into another & of
transferring money from one country to another”. The Foreign Exchange Regulation Act
1947 as adopted in Bangladesh defines Foreign Exchange as Foreign currency including any
investment draws, accepted, made or issued as per clause 13 of article 16 of Bangladesh
Bank order 1972 & all deposits, credits & balances pay e in any foreign currency, any drafts,
travelers choose, L/C & bill of exchange express or drawn in currency but pay e in foreign
currency.
Functions of Foreign exchange department:
Import: Import mainly consist of some specific part those are:
Opening of letter of credit (L/C)
Advance bills
Bills for collection
Import loan and guarantees
Export: Export part mainly consist of some specific parts and those are:
Pre-shipment advances
Purchase of foreign bills
Negotiating of foreign bills
Export guarantees
Advising/ confirming letters-letter of credit
Advance for deferred payments exports
Advance against bills for collection
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Remittance:
Remittance is another important sector of the Agrani Bank from where it earns a lot of
foreign exchange every year. Remittance means to send or transfer money or money worth
from one place to another. In case the bank as the media to transfer or remit the money.
Against the service it charges some commission from the client.
Remittance mainly consists of some specific part and those are:
Issue of DD, MT, TT etc.
Payment of DD, MT,TT etc.
Issues and enhancement of traveler’scheque.
Sale and enhancement of foreign currency notes.
Non-resident accounts.
Functions of Foreign Remittance Section
Selling:
Selling of traveler’s cheques to Bangladesh travelers.
Selling cash foreign currency in the form of draft and ties to Bangladeshi
/students for education abroad.
Selling of foreign currency to Bangladeshi for medical expenses.
Selling of foreign exchange to nonresident stock investor.
Buying:
Buying of International currency from foreigner and Bangladeshi.
Buying cash foreign currency from foreigner and Bangladesh.
Buying of draft from Bangladeshi.
Buying of International currency from FC account of Bangladeshis individual
as well as from exporters.
Buying of International currency from nonresident investing in shares and
stocks of Bangladesh.
Foreign Remittance Business at Bangladesh.
Reliability:
Our customers have benefited from our electronic money transfer for over 150
years. Each transfer can be tracked electronically to make sure that you
receive the money your loved one has sent.
Speed:
When your loved one sends you money, within minutes you can receive it in
Bangladesh.
Convenience
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Inward Remittances Flow at The foreign exchange remittances from Bangladeshi nationals
working abroad decreased by US$ 176.68 million or 16.82% to US$ 873.86 million during
December 2009 compared to US$ 1,050.54 million at the end of November 2008. During
July-December 2009 remittance increased by US$ 1,028.47 million or 22.83% to US$
5,533.20 million compared to US$ 4,504.73 million in July-December 2008.
Foreign Exchange Services: ABL is rendering various kinds of services in international transaction of their clients. Some
are described below: –
1. L/C Opening:
Bangladesh is mainly an import oriented country. So, L/C is a very important import
document which is issued by Bank. In international market two parties are not known to each
other. The importers of Bangladesh give an L/C to exporters of foreign country to give the
assurance of payment. ABL is opening L/C in favor of their clients.
2. Export processing:
When exporter’s foreign document comes to ABL, ABL collect payment from foreign bank for
its party. ABL purchase bill if their party need early cash.
3. Back to Back and Local L/C:
In against of export L/C ABL give the facility to open Back to Back and Local L/C
4. Dollar sale and purchase:
ABL sale dollar against passport. The rate of exchange is given by Bangladesh Bank which is
changed every day.
5. Loan facilities:
Loan facility is given to clients to help in foreign exchange. Different types of loan facility are
given below-
CC
LTR
LIM
Sanction of L/C
Money gram:
Agrani Bank Limited is very happy to announce to have joined hands with Money gram
payment system to serve expatriates to send money back home quickly from anywhere in the
world. Moreover, money can also be sent quickly through Money gram from Bangladesh to
other parts of the world as is done through the banking channel. At the moment we are
concentrating on home remittances being sent by the expatriates.
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CHAPTER–FOUR
Financial & Graphical Analysis
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Balance Sheet Matrix
S
L
Particulars 2009 2010 2011 2012 2013
Balance Sheet Matrix
1 Authorized Capital 10,000.00 10,000.00 10,000.00 20,000.00 20,000.00
2 Paid up Capital 4,752.00 6,177.60 7,413.12 10,007.71 12,509.64
3 Share Premium 1.99 1.99 1.99 1.99 1.99
4 Reserve Fund 9,308.49 13,927.94 16,081.14 17,792.50 27,245.87
5 Retained Earnings 1,425.60 1,853.28 2,594.59 3,202.47 3,127.41
6 Shareholders’ Equity 14,060.49 20,105.54 23,494.26 27,800.21 39,755.51
7 Deposits (including Bills
Payable)
202,115.45 244,292.14 291,934.60 341,853.67 417,844.14
8 Investments (including
investment in Shares and
Securities)
187,586.55 225,752.41 275,493.94 322,772.83 399,930.79
9 Investments (excluding
investment in Shares and
Securities)
180,053.94 214,615.80 263,225.13 305,840.56 372,920.72
10 Investment Deposit Ratio
(as per BB guidelines)
89.08% 87.85% 90.17% 87.29% 85.18%
11 Total Assets (including
Contra)
288,017.19 340,638.49 443,684.79 502,613.05 592,580.50
12 Total Assets (excluding
Contra)
230,879.14 278,302.84 330,586.12 389,192.12 482,536.32
13 Fixed Assets 4,407.22 6,512.36 6,748.44 7,100.19 14,808.23
Capital Matrix:
14 Total Risk Weighted (RWA)
(Basel ll for
2012,2011,2010,2009&200
8,Basel l for 2009)
173,289.43 202,756.60 256,804.90 257,564.30 311,511.60
15 Core Capital- Tier-l 11,272.12 14,714.10 18,559.80 23,401.24 28,225.10
16 Supplementary Capital
(Tier-ll)
7,299.96 8,905.70 9,840.20 10,315.49 13,803.20
17 Regulatory Capital (Tier
l,ll & lll)
18,572.08 23,619.80 28,400.00 33,716.73 42,028.30
18 Statutory Capital (Paid up
Capital & Statutory
Reserve)
9,692.49 12,421.62 15,348.08 20,012.14 24,933.30
19 Equity/Capital
Surplus/(Deficit)
1,243.14 3,344.16 5,287.58 7,960.24 10,877.10
20 Capital Adequacy Ratio
(Basel ll for 2012,
2011,2010 & 2009, Basel l
for 2008)
10.72% 11.65% 11.06% 13.09% 13.49%
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Assets Quality:
21 Amount of Classified
Investment
4,311.13 5,063.40 4,655.63 8,292.32 14,212.80
22 Classified Investment to
total Investment
2.39% 2.36% 1.77% 2.71% 3.81%
23 Provision against
Classified Investment
1,883.43 2,490.00 1,840.00 3,054.00 6,054.35
24 General Provision against
Unclassified Investment
2,315.74 2,700.00 3,443.00 3,996.0 3,935.90
25 General Provision on Off
Balance Sheet Items
570.83 510.00 930.00 1,120.00 1,100.45
Income & Expenditure Statement matrix:
26 Investment Income 19,543.84 21,370.53 24,766.26 32,019.53 43,672.23
27 Profit Paid on Deposit 12,162.10 13,076.99 14,471.89 18,401.22 25,870.43
28 Net Investment Income 7,381.74 8,293.54 10,294.37 13,618.31 17,801.80
29 Non Investment Income 4212.50 4033.84 5362.64 6381.76 6673.54
30 Total Income 23,756.33 25,404.37 30,128.90 38,401.29 50,345.77
31 Administrative & other
Exp.
4115.81 4,545.97 6,087.32 7,268.45 8,867.10
32 Total Expenditure
Excluding Provision
16,277.90 17,622.97 20,559.21 25,669.67 34,737.53
33 Provision for Investment,
Off Balance Sheet items &
other Assets
1,130.60 1,263.23 1,114.99 2,384.31 3,512.07
34 Total Expenditure
Including Provision
17,408.50 18,886.20 21,674.20 28,053.98 38,249.59
35 Net Profit before Tax 6,347.83 6,517.66 8,454.71 10,347.31 12,096.18
36 Net Profit after Tax 2,674.80 3,403.55 4,463.47 4,841.45 5,524.44
37 Provision for Income Tax 3,245.08 3,253.23 4,108.98 5,505.87 6,571.74
Foreign Exchange Business
38 Import Business 168,329.00 161,230.00 246,281.00 301,207.00 284,588
39 Export Business 93,962.00 106,424.00 148,421.00 178,244.00 197,09
40 Remittance 140,404 194,716 214,629 236,607
300,915
41 Total Foreign Exchange
Business
402,695 462,370 609,331 716,058 782,598
Distribution Network
42 Number of Correspondent
Banks
275 295 295 313 320
43 Number of Foreign
Correspondents
906 919 919 935 676
44 Number of Shareholders 33,686 52,164 58,923 60,550 60,302
45 Number of Employees 9.397 9.588 10,349 11,465 12,188
46 Number of Branches *206 *231 *251 *266 *276
Shareholders’ Information
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Five years data at a glance (Tk. in millions):
Year wise Financial analysis (tk. In millions)
Year 2009 2010 2011 2012 2013
Volume 168329 161230 246281 301207 284587
Growth 2% -4% 53% 22% -6%
Table 4.2- Financial Analysis
47 ……… 10% ……….. 7% 8%
Dividend 30% 20% 35% 25% 17%
48 Net Assets Value
(NAV) per Share
22.76 27.12 23.48 22.22 31.78
49 Earnings Per Share 5.63 5.51 6.02 4.84 4.42
2.14 2.72 3.57 3.87 4.42
50 Market Value per
Share (highest-taka)
48.61% 89.00 90.00 83.98 59.00
Financial Indicators
51 Gross Profit Ratio 46.80% 48.52% 51.97% 52.08% 48.61%
52 Cost of Fund 9.56% 8.76% 8.65% 8.86% 9.32%
53 Cost Income
Ratio/Efficiency
Ratio
0.73 0.74 0.72 0.73 0.76
54 Return on Equity
(ROE)
19.02% 16.93% 19.00% 17.42% 13.90%
55 Return on Assets
(ROA)
1.27% 1.34% 1.47% 1.35% 1.27%
56 Price Earnings Ratio
(Times)
10.78 12.87 13.29 11.27 9.68
57 Spread 4.53% 4.86% 4.87% 4.03% 4.10%
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Graph of Financial analysis:
Shareholder Equity Analysis:
Export trend of IBBL (tk. In millions)
Year 2009 2010 2011 2012 2013
Volume 93920 106424 148421 178244 197095
Growth 41 13 39 20 11
-50000
0
50000
100000
150000
200000
250000
300000
350000
2008 2009 2010 2011 2012
volume
growth
2009 2010 2011 2012 2013
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Graph of Shareholder Equity Analysis:
Non Interest Income:
Remittance trend of IBBL (tk. In millions)
Year 2009 2010 2011 2012 2013
Volume 140420 194716 214629 236607 300915
Growth 67% 39% 10% 10% 27%
Table: Non Interest Income analysis
Graph Non Interest Income:
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
2008 2009 2010 2011 2012
volume
growth
0
50000
100000
150000
200000
250000
300000
350000
2008 2009 2010 2011 2012
volume
growth
2009 2010 2011 2012 2013
Pag
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CHAPTER–FIVE
Recommendation
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Recommendations
The bank with vast and complex banking system, it is very difficult for me to recommend. We
have the practical experience in Agrani bank for only three months, with my little experience
in shortcomings regarding operational activities of the bank. On the basis of Our observation
We are describing.
Now technology is changed and new technology is new experience.For this reason fresh and
young generation employees should be appointed in this department who are familiar with
the latest technology and literacy. Need to use of effective management information systems.
And Use appropriate techniques in evaluating customer need professionally. To deliver
quality service top management should try to mitigate the gap between customer's
expectation and employee's perception.
We think ABL need to focus on the marketing aspects to let customers know about their
products and offerings and more promotion should be given to attract new customer.
Communication with customers need to increase and Evaluate customer's needs from their
perspective and explain locally the shortcomings.
Nowadays-conventional banking concept is outmoded. Now banks are offering more
ancillary services like credit card, on line services and many others. ABL should differentiate
its services adopting the modern facilities.
ABL should publish and widely distribute Discount booklets so that they can attract
customers’ attention. Wide and effective publicity should also be given through radio,
television, newspapers and periodicals. Merchants should be also put within the purview of
the advertisement campaign in future. The bank should introduce more promotional
activities. ABL should recruit employees from interns who have efficiency in work. ABL
should set up more and more ATM Booth and increases the facilities of Card service. ABL
should emphasis on Mobile banking.
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Conclusion
Prepare a report is so difficult but we got enough opportunities and available support in this
bank for make a report which made easy environment. Like other student I have got the
chance of getting our internship in Agrani bank limited. We have gathered massive
experience during my internship. Our work was based on the “Agrani Bank Limited
Corporate branch .So it is not a complete report on all the activities of this branch. However
in this report the tasks performed by me during my internship are furnished and in some
cases we have added our view points to make the report complete.
The bank has successfully made a positive contribution to the economy of Bangladesh with in
very short period of time. Its profit is gradually increasing. It plays a great role in collecting
scattered Deposit, Loan settlement and International Trade etc. The Bank ensures quality
services to the customers. For better growth and healthy economic position, it should
introduce new and lucrative long-term credit schemes especially for new investors and
schemes for poverty alleviation like micro credit.
We hope ABL do more work for socio-economic development besides their banking business.
To keep pace with ever-changing uncertain domestic business environment and face the
challenges of revised global economic scenario, the bank should be more pro-active and
responsive to introduce new marketing strategy to hold the strong position in home and
abroad.
After all want to say that there may have seen some sort of problems in A to Z operation of
the bank as the bank itself is a big one. But if the management becomes more conscious and
can be free from all kinds of intervention I am sure the success of this bank will sustain.
We think for the future planning and the successful operation in its prime goal in this current
competitive environment we hope this report can provide a good guideline. We wish
continuous success and healthy business portfolio of Agrani Bank Principal Branches.
Pag
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Bibliography
Books:
Henry Waren; How to use your Bank.
Different prospectus of ABL
Annual Report of ABL 2013
Recharge Mathodology C K Kothari
Website:
Agranibank". [Online]. Available: https://www.agranibank.org
“google ". [Online]. Available: https://www.google.com
“wikipedia ". [Online]. Available: http://en.wikipedia.org/wiki/PHP
“jamunabankbd ". [Online]. Available: http://www.jamunabankbd.com
“bangladeshbank-bd ". [Online]. Available: http://www.bangladeshbank-bd.org
“sap ". [Online]. Available: http://www.sap.com/banking
“reportbd ". [Online]. Available: http://www.reportbd.com
