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AGRANI BANK AT A
SKETCH
[2.1] HISTORICAL BACKGROUND OF AGRANI BANK LTD:
Agrani Bank is a state-owned commercial bank of Bangladesh established in 1972. Its
headquarter is situated at Motijheel in Dhaka, Bangladesh. 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 as a Public Limited Company on May 17,2007 with a view to take over the business, assets, liabilities, rights and obligations of
the Agrani Bank which emerged as a nationalized commercial bank in 1972 immediately
after the emergence of Bangladesh as an independent state. Agrani Bank Limited on
behalf of the government, former Agrani Bank and the Board of Directors of Agrani Bank
Limited on November 15, 2007 with retrospective effect from 01 July, 2007. It started
functioning as nationalized commercial bank taking over assets and liabilities of the
erstwhile Habib Bank Limited and commerce Bank ltd in the East Pakistan. The
authorized capital of the Bank is Tk. 800 core.
At the start of its operation in 1972, Agrani Bank had 246 branches, of which 37 were
temporarily closed. It had a total deposit of Tk 581 million, advances of Tk 663.40 million
and borrowing of Tk 294.80 million. Initially, it did not have any liquid asset to run its
operations smoothly and to undertake development activities. Investment amounting to
Tk 110 million was in unapproved securities. On 30 June 2000, the total deposit at the
bank stood at Tk 92.96 billion, total loans and advances at Tk 74.92 billion, total
investment at Tk 25.375 billion, total assets at Tk 124.798 billion and reserve funds at Tk
319 million. Of the total deposits, 8.03%, 35.41%, 19.21% and 37.35% were in current,
savings, fixed and other deposits respectively. 4.24% of the total amount of loans andadvances were classified. The credit-deposit ratio of the bank was 80.60%. The bank had
borrowed Tk 630 million from the inter-bank call market and the total value of its liquid
assets was Tk 36.160 billion. In September 1999, the interest rate offered by the bank
on savings deposits in both rural and urban areas was 7.50%, while the average interest
rate charged by it on lending in different sectors was 13.29%. Public sectors' borrowing
from the bank was Tk 12 billion (16% of the bank's total loans and advances); about 44%
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of these loans were classified. The bank also provided micro-credit. Up to June 2000, the
disbursement of micro-credit amounted to Tk 4.615 billion.
In addition to traditional deposit taking in various accounts and providing loans to
almost all sectors of the economy, the bank offers many other services through its
schemes of school banking, inland travelers cheques, pension funds, industrial
development bond and inland remittance. The bank operates some income generating
and economic development projects such as the Productive Employment Project,
Netrokona Integrated Agri-product and Water Management Project, IFAD Project for
POVERTYAlleviation through Employment Creation, Kurigram Poverty Alleviation Project,
Crop Intensification Project, National Micro Irrigation Development Project, Micro
Entrepreneurship Development Project, and Agricultural Diversification and
Intensification Project. The bank participates actively in foreign exchange business
including overseas remittance services. The total volume of foreign exchange business
handled by the bank in servicing imports and exports and remittances during 1999-2000
amounted to Tk 55.345 billion compared to only Tk 310 million in 1972-73. At present,
the bank has correspondent relationship with 903 foreign banks/bank offices
throughout the world.
Agrani Bank monitors its operations through a performance budget. It has a marketing
intelligence unit. It conducts a programme of human resources development through
training and motivation and has adopted some important policy measures, including
introduction of Lending Risk Analysis, suggested by the Financial Sector Reform
Programme. The business policies of the bank in 1990s included fulfilling capital
adequacy requirements, mobilizing large amount of deposits, and making investment of
assets in more profitable ways. The bank has diverted its activity toward off-balance
sheet items during the last decade as a part of its strategy to increase its area of
operation and non-interest based income.
http://www.banglapedia.org/httpdocs/HT/P_0240.HTMhttp://www.banglapedia.org/httpdocs/HT/P_0240.HTMhttp://www.banglapedia.org/httpdocs/HT/P_0240.HTM8/2/2019 Agrani Bank at A
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2.2 VisionTo become a leading bank of Bangladesh
operating at international level of
efficiency, quality and customer service .
2.3 MissionWe operate ethically and fairly within the
stringent framework set by our regulators.
We fuse ideas and lessons from best practice
to explore new avenues to become stronger,
more efficient and competitive. We apply
information and communication technologyFor the benefit of our customers and
employees. We invest to strengthen the
future of the Bank.
2.4 Motto
To adopt and adapt to modernapproaches to stand supreme in the
banking arena of Bangladesh.
2.5 ValuesWe value in integrity, transparency,
accountability and professionalism to
provide a high standard of service to all our
customers and stakeholders.
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2.6 Ethical Standards
1. Be Trustful: We believe in mutual trust and treat our customers in a way so that they can
trust us.
2. Keep an Open Mind: For continuous improvement of our Bank we keep our minds open to
new ideas. We seek opinions and feedback from both customers and team members through
which our Bank will continue to grow.3. Meet Obligations: Regardless of the circumstances, we do
everything to gain the trust and confidence of customers and
clients by honoring our commitments and obligations.
4. Be Transparent: We are transparent in our dealings with
customers and all stakeholders. We ensure transparency by
furnishing information through print & electronic media as
well as in Banks website, journals and reports
5. Be involved with the Community: We remain involved in
community-related issues and activities, thereby
demonstrating that our business is socially responsible.
6. Be Respectful: We treat all stakeholders with utmostrespect and courtesy regardless of differences, positions,
titles, ages, or other types of distinctions.
7. Be Environment conscious: We provide industrial financing decorously to keep the
environment free from pollution and health hazard. We also ensure setting up ETP before
installation of industries that may affect the environment.
2.6 Strategic Objectives
1. Winning at least 6 percent share of deposits and
4.5 percent share of loans and advances OfBangladeshi market.
2. Gaining competitive advantages by loweringoverall cost compared to that of competitors.
3. Overtaking competitors by providing quality
Customer service.
4. Achieving technological leadership among the
peer group.
5. Strengthening the Banks brand recognition.
6. Contributing towards the economic well-being of
the country by focusing particularly on SME and
agricultural sectors.7. Strengthening research capability for innovative
products.
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2.7 CORPORATE PROFILE
AS ON 31.12.2010
Name of the Company Agrani Bank Limited
Chairman Khondoker Bazlul Hoque, PhD
Managing Director & CEO Syed Abdul Hamid, Chartered Accountant
Company Secretary Md. Ekramul Hakim
Legal Status Public Limited Company
Genesis Agrani Bank Limited has been incorporated on 17 May 2007 and taken over thebusiness, assets, liabilities, rights and obligations of Agrani Bank with effect from 1 July2007. Agrani Bank which initially emerged as a Nationalized Commercial Bank (NCB) in1972, following The BangladeshBanks Nationalization Order, 1972 (President's Order No. 26 of 1972) has now becomea State Owned Commercial Bank (SCB) through a vendor's agreement dated 15November 2007.
Date of Incorporation 17 May 2007
Registered Office 9 D Dilkusha Commercial Area, Dhaka 1000 Bangladesh
Authorized Capital Tk. 800.00 Core
Paid up Capital Tk. 546.52 Core
Reserve & Retained Earnings Tk. 1025.20 Core
Credit Rating by CRISL Particulars Long Term Short Term
Surveillance Rating 2009(As Government Supported Entity)
AAA ST-1
Surveillance Rating 2009
(As State Owned Commercial Bank)
A ST-2
Surveillance Rating 2008(As State Owned Commercial Bank)
A- ST-2
Outlook Positive
Date of Rating Declaration 06-09-2010
Number of Employees 11,900
Number of Branches 867
Number of Subsidiary Companies 04
Phone-PABX +88-02-9566153-54, +88-02-9566160-69, +88-02-9566074-75
Fax +88-02-9562346, +88-02-9563662+88-02-9563658,
SWIFT at HO. ID. AGBKBDDH
Website www.agranibank.org
E-mail [email protected]@agranibank.org
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[2.8] BOARD OF DIRECTORS:
Agrani Bank Limited is governed by a Board of Directors consisting of 13 (thirteen)
members headed by a Chairman. The Bank is headed by the Managing Director & Chief
Executive Officer; Managing Director is assisted by Deputy Managing Directors andGeneral Managers
HEREENCLOSED THE CURRENT LIST OF BOARD OF DIRECTORSOF AGRANIBANK LTD.AS ON 31.12.2010
ChairmanKhondoker Bazlul Hoque, PhD
ProfessorDepartment of International Business
University of Dhaka
DirectorsRanjit Kumar Chakraborty
Additional Secretary, Finance Division, Ministry of Finance
Government of the Peoples Republic of Bangladesh
Shekhar DuttaSecretary
Moni Singh-Farhad Memorial TrustNagibul Islam DipuManaging Director
Polac Real Estate Limited
Engineer Md. Abdus SaburEngineer and Industrialist
Barrister Zakir AhammadChairman
Indepth News of Bangladesh (INB)Shahjada Mohiuddin
ProprietorM/S Arshi Enterprise
Abduz Jahir Chowdhury (Sufian)Social Worker
K.M.N. Manjurul Hoque LabluChief Editor & Managing Director
Global News Agency
A.K. Gulam Kibria, FCASenior Partner
G.Kibria & Co., Chartered Accountants
Luna ShamsuddohaChairman
Dohatech New Media
Syed Bazlul Karim, BPMRtd. AIG and Co-operative Leader
Syed Abdul Hamid, Chartered AccountantManaging Director & CEO
Company SecretaryMd. Ekramul Hakim
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[2.9] PRESENT OWNERSHIP STRUCTURE:
Its a Public Limited Company on May 17, 2007 with a view to take over the business,
assets, liabilities, rights and obligations of the Agrani Bank which emerged as a
nationalized commercial bank in 1972 immediately after the emergence of Bangladesh
as an independent state. Agrani Bank Limited started functioning as a going concern
basis through a Vendors Agreement signed between the ministry of finance,
Government of the People's Republic of Bangladesh on behalf of the former Agrani Bank
and the Board of Directors of Agrani Bank Limited on November 15, 2007 with
retrospective effect from 01 July, 2007
[2.10] FINANCIAL PERFORMANCE:
Total Operating Income
The Banks total operating income stood at Tk. 1,693 crore in 2010 as against Tk. 1028
crore in 2009 which indicates an increase of Tk. 665 crore (i.e. 65 percent higher) over
the last year.
Source: Annual report 2010
Total Operating Expenditure
The Banks total operating expenditure stood at Tk. 607 crore in 2010 as against Tk. 384
crore in 2009 which indicates an increase of Tk. 223 crore (i.e. 58 percent higher) over
the last year. This is mainly due to the increase of staff salary in line with the govt. policy
and new recruitment of officers.
Year
Profits2,349,543,923
3,013,327,5064,493,889,607
20082009
2010
Year
Profits
2,349,543,923
3,013,327,506
4,493,889,607
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Net Interest Income
The Banks net interest income is Tk. 691 crore in 2010. Interest earned from loan and
profit earned from investment remained the principal component of interest income.
However, interest cost of deposits was the main component of interest expenses.
Operating Profit
During 2010, the Banks total operating profit before amortization, provision and tax
stood at Tk. 1086 as against that of Tk. 644 crore in 2009. The Bank earned an operating
profit of Tk. 953 crore before charging any provision and taxes during the year 2010 as
against an operating profit of Tk. 511 crore in the previous year which indicates that the
Bank has increased its profitability significantly during the year under review compared
to the prior year. Income tax amounting to TK. 289 crore was charged against profit
during the year 2010. Thus a net profit (after provisions and taxes) during the year 2010
stood at Tk. 352 crore as against a net profit of Tk. 135 crore in the previous year
Capital Adequacy Ratio
As per the provisions of Section 13(2) of the Bank Companies Act 1991 and BRPD
circulars 01, 10, 05 and 11 dated 08 January 1996, 24 November 2002, 14 May 2007 and
14 August 2008 respectively issued by Bangladesh Bank, adequate capital needs to be
maintained by all commercial banks to operate the Banking activities smoothly. TheBank maintained core capital of Tk. 1162.72 crore as against required Tk. 869.65 crore
and total actual capital of Tk. 1,778.39 crore as against required Tk. 1,739.30 crore
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Appropriation of Profit
During the year 2010 the Bank earned Tk. 1086 crore before provision and tax which has
been appropriated in the following manner.
Particulars 2009(amount in
crore)
2010(amount
in crore)
Profit/(Loss) before provision & tax
Provision for loans and advances
Other provision (Including Incentive Bonus)
Total provision
Net profit/(loss) before Tax
953.25
89.22
223.31
312.53
640.72
511.49
90.95
94.78
185.73
325.76
Provision for tax
Current tax
Deferred tax
Total provision for tax
Net profit/(loss) after tax
Add: Retained surplus from the previous year
Available for Appropriation
206.86
82.18
289.04
351.68
275.54
627.22
170.00
20.21
190.22
135.55
479.35
614.90
Appropriation of Profit
Statutory Reserve
Bonus Share Issue
Retained surplus
128.14
49.68
449.39
65.15
248.42
301.33
Source:Annual Repot 2010
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[2.11]THE SERVICES AND PRODUCTS OF AGRANI BANK LTD:
1. Personal
2. Corporate
3. Business4. Agri &Rural
5. SME
6. Merchant
7. NRB
8. Islami
1. Personal BankingPersonal banking products are Deposit, Loan and Card services offered by ABL. Deposit
services are Savings bank account, fixed deposit receipt, Pension sanchay scheme. These
schemes enhance small savings of limited income people to be accumulated.
Loan products at personal level are Home loan, Consumer loan, and Advance against
salary. These programs help to achieve your dreams just in time and at a minimum
effort.
Agrani Bank presents Debit card for the clients sharing a network with other four
renowned banks of the country. Fees for the card are nominal. You may have a debit
card from ABL and enjoy a life free from any tension of carrying cash.
2. Corporate BankingAgrani Bank provides deposit services like Current account and fixed deposit for its
corporate clients. On the other hand it arranges funds through syndication of banks for
big, corporate projects. Thus the bank is contributing to uplift the national economy to a
higher level.
3. Business supportWith a view to building up a fund of Tk. 500 crore for financing industrial projects, ABL
introduced Agrani Bank Shilpa Unnayan Bond in 1999. There are two types of bonds, 5
and 7 years. The lowest denomination is Tk. 50,000 and highest one is of Tk. 500,000.
Interest rate is good enough to attract people.
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Major credit Schemes for business people are Industrial Credit, Trade Finance, Import
Finance and Export Finance. If you are a deserving candidate for any of them, or you
need any documentary support from Agrani Bank, you may pay a visit to any branch of
ABL.
4. Agri & Rural BankingNow bottom line farmers may have a bank account depositing Tk.10 only. Agrani Bank
provides this service to rural Bangladesh. Young generation intending to go abroad for
jobs may have loan for their air tickets and other expenses against nominal securities.
5. SME BankingSmall and medium enterprise of the country is one of the deserving sectors for financial
support. Agrani Bank justifiably provides credit to them under different schemes. ABLlaunched a joint venture program named Small Enterprise Development Program (SEDP)
with NORAD, a Norwegian agency in 1995. This program was implemented in greater
Mymensingh and Faridpur districts. The target fields were rice mill, oil mill, and nursery,
repairing shops, fishery, weaving and many more.
6. Banking for NRBsNonresident Bangladeshis now get banking facility through Agrani Bank. They may have
an account in taka; they may invest in Dollar Bonds. They are also allowed to have an
F/C account. If you are one of them you can avail these opportunities. Your nominees
are also entitled for these scopes.
7. Merchant BankingThe merchant banking unit of Agrani Bank was turned into a subsidiary entity in 2009
and named as Agrani Equity & Investment Limited. This unit serves Issue management,
Underwriting and Portfolio management functions.
8. Islamic BankingAmong the nationalized banks Agrani was the first to introduce Islami Banking service.
Agrani Bank provides completely interest free Shariah based banking to the clients.
Deposit services offer interest free profit in compliance with Shariah. If you desire to get
Islami banking service you are welcome at its Islami banking unit in its H/Q.
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[2.12]BRANCH NETWORK:
The bank has 11 Circle offices, 25 Divisions in head office, 54 zonal offices and 876 branches
including 27 corporate and 40 AD (authorized dealer) branches. The branches of the Bank cover
all the important trading and commercial centers in Bangladesh. As of date, it has 876 brancheswithin Bangladesh. Most of the branches are equipped with computers in addition to modern
facilities, logistics and professionally competent manpower.
[2.13] ABOUT ELEPHANT ROAD BRANCH:
Elephant Road Branch of Agrani Bank Limited is located at Elephant Road, Dhanmondi, Dhaka.
This branch is a project branch of Agrani Bank. The main purpose of Elephant Road Branch is to
provide banking services to the employees of Elephant Road of Bangladesh. Actually, this
branch is located in the Elephant Road Boundary. Agrani Bank rented the place to run its
operation. Elephant Road Branch started its journey at 25 June 1986. At present, this branch
provides banking services not only to the employees of Elephant Road but also to other general
public. For example, employees of various organizations get banking services from this branch.
Assistant General Manager (AGM)
(Acting Branch Manager)
Principal Officer
Senior Officer
Officer
Clerk /casher
Massinger /peon
Figure: Management hierarchy of Elephant Road Branch
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Elephant Road Branch has seven departments to provide banking services. These
departments are
Figure: Different department of Elephant Road Branch
There are 15 employees working in the Elephant Road Branch. The Branch Manager looks after
the functions of seven departments. Two employees are mainly responsible for General
Banking department. Loans & Advance department, Bills department, clearing department,
Foreign Remittance department and Cash department have one employee for each. There is a
Computer Operator who is responsible for posting the entries in the computer. The Branch has
two peons as well.
Loans & Advances
Department
General Banking
Department
Elephant Road Branch
Of Agrani Bank
Remittance Department Computer DepartmentClearing DepartmentCash Department
Local Remittance (TT,
DD, PO)
Foreign Remittance