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Application of Managementtheory and Practice of Robi

Axiata Ltd

WELLCOMEWELLCOME

TOTOTHE PRESENTATIONTHE PRESENTATION

ONON

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Group 4Group 4

Prepared ByPre

pared By

1.Kazi mamun 1201141

2.Shafiqul Islam 1201142

3.ArfanulKarim 12011444.Ruhana Afrin Chy 1201147

5.Asif Chowdhury 1201148

Supervised By:Su

pervised By:

Mr.ShahidulQuaderAsistant Professor

Dept.of Marketing & International marketing

Faculty of Business Studies

Chittagong University

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IntroductionIntroduction

First private sector bank under joint ventureFirst private sector bank under joint venture

Started its operation fromStarted its operation from April 12, 1982April 12, 1982

Joint Venture with Dubai Bank Limited, UAEJoint Venture with Dubai Bank Limited, UAE

OpenedOpened * 82 Branches in Bangladesh* 82 Branches in Bangladesh

* 1 in Mumbai, India* 1 in Mumbai, India

* 1 in Hong Kong named* 1 in Hong Kong namedAB International Finance Ltd.AB International Finance Ltd.

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Objectives of the Study

To know about ABBL at a glance.

To know the credit instrument of the bank.

To know about credit operations of the bank To critically evaluate the credit performance

of ABBL Bahaddarhat branch.

To identify the areas of improvement in

credit operations To recommend the bank for improving its

credit performance.

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ACTIVITIES OF THE BANK Corporate Banking Corporate Lending Structured Finance

Cards Brokerage Service Custodial Service Islamic Banking Foreign Trade Retail Banking

Unsecured Loans Secured Loans

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CCS Loan ProductsCCS Loan Products1.1. Q-Cash Staff Overdraft (unsecured)Q-Cash Staff Overdraft (unsecured)

2.2.

Q-Cash Customer Overdraft (unsecured)Q-Cash Customer Overdraft (unsecured)3.3. Auto Loan (unsecured)Auto Loan (unsecured)

4.4. Personal Loan (secured)Personal Loan (secured)

5.5. Personal Loan (unsecured)Personal Loan (unsecured)

6.6. Personal Overdraft (secured)Personal Overdraft (secured)

SME Loan ProductsSME Loan Products

1.1. GatiGati

2.2. ProsharProshar

3.3. DigunDigun4.4. SathiSathi

5.5. Choto PujiChoto Puji

6.6. UddogUddog

7.7. AwparajitaAwparajita

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Sector Wise LODs Position as on December30, 2010

IndustrialSector Limit % Outstanding %

Trading 15,064,919 25% 12,130,869 25%

Agriculture 6,444,920 11% 5,477,990 11%

Manufacturing 23,816,061 40% 18,695,354 38%

Services 6,427,150 11% 5,376,696 11%

ContractualWorks 1,693,475 3% 1,108,986 2%

Energy &Mining 1,016,647 2% 945,776 2%

Others 393,408 1% 350,843 1%

100% Secured

Loan 2,633,006 4% 2,098,487 4%

SpecialScheme Loans 2,095,618 4% 2,730,863 6%

Total 59,585,204 100% 48,915,864 100%

ABBL Sectorwise Outstanding of LODs as on December 30,2010

Manufacturing38%

Agriculture

11%

Others

1%

Energy & Mining

2%

100% Secured

Loan

4%

Special Scheme

Loans

6%

Trading

25%Contractual Works2%

Services

11%

Trading

Agriculture

Manufacturing

Services

ContractualWorksEnergy &

MiningOthers

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Growth in Loans and Advances

52,716

40,915.40

31,289.30

0

10,000

20,000

30,000

40,000

50,000

60,000

Amount

YEAR-2010 YEAR-2009 YEAR-2008

Year

Total Loan Outstanding in the Year 2008-10

Series1

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Interest Spread (%) of AB BankInterest Spread (%) of AB Bank

ParticularsParticulars

20102010

20092009

Interest PaidInterest Paid 3,774.743,774.74 2,486.172,486.17

Average DepositAverage Deposit 48,496.7748,496.77 32,800.5532,800.55

Cost of depositsCost of deposits

(%)(%)

7.78%7.78% 7.58%7.58%

Average Loans,Average Loans,

Advances & BillsAdvances & Bills

34,734.4434,734.44 25,365.3225,365.32

Interest EarnedInterest Earned 4,873.494,873.49 3,201.253,201.25

Interest Yield (%)Interest Yield (%) 14.03%14.03% 12.62%12.62%

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Credit RecoveryCredit Recovery

NPL Account ManagementNPL Account Management

Account TransferAccount Transfer

Non Performing Loan (NPL) MonitoringNon Performing Loan (NPL) Monitoring NPL Provisioning and Write OffNPL Provisioning and Write Off

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MAJOR FINDINGSMAJOR FINDINGS

Lack of interest in investing in agriculturalLack of interest in investing in agriculturalsectorsector

Bad intention of customers default cultureBad intention of customers default culture

to pay regular loan installments.to pay regular loan installments. [[[[ The branch is non-AD branchThe branch is non-AD branch

No Recovery UnitNo Recovery Unit

Bad/loss loan has increased from 2009 toBad/loss loan has increased from 2009 to

2010.2010.

Loan to employees is not retainedLoan to employees is not retained

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RECOMMENDATIONSRECOMMENDATIONS

Should increase investment in the agriculturalShould increase investment in the agricultural

sectorssectors

Should initiate extra facilities for early payers ReduceShould initiate extra facilities for early payers Reduceloan processing timeloan processing time

Should reduce the dependency on zonal office andShould reduce the dependency on zonal office and

head officehead office

Should build up a strong credit recovery unitShould build up a strong credit recovery unit Should increase the volume of loan to the employeeShould increase the volume of loan to the employee

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THANK YOU ALLTHANK YOU ALL