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Annual Report

2012
9/D Dilkusha Commercial Area Dhaka 1000
www.agranibank.org
02
Corporate Profile 09
Vision, Mission, Motto, Values 10
Strategic Objectives, Ethical Standards 11
Notice of the Sixth Annual General Meeting 12
Letter of Transmittal 13
Board of Directors 14
Board Audit Committee, Trustees of ABL Employees Provident Fund 16
Auditors, Credit Rating Company, Income Tax Advisor, Legal Consultant 16
Management Team 17
Five Years Performance at a Glance 20
Graphical presentation of Performance 22
Major Achievements in 2012 24
Chairmans Message 25
Highlights of 2012 28
Managing Director & CEOs Round Up 29
Shareholders' Information 32
Picture of Annual General Meetings 33
Financial Highlights of 2012 and 2011 35
Key Ratios 36
Graphical Presentation of Key Financial Information 37
Maintaining Capital Adequacy 39
Products and Services 40
Risk Management 43
Disclosure Under BASEL II 49
Corporate Social Responsibility 59
Directors Report to the Shareholders 65
Global Economic Scenario 66
Track Record of Bangladesh Economy 67
Macro Economic Scenario of Bangladesh 68
Medium Term Prospect of Bangladesh Economy 73
Digital Bangladesh 75
Perspective Plan 2010-2021 76
Emergence of Agrani Bank Limited 77
Contents
Annual Report 2012 03
04
Progress Achieved in 2012 79
Shareholders Equity 79
Funding Structure 79
Asset Portfolio 80
Business Performance 80
Deposits 80
Import-Export Business 81
Foreign Remittance Business 82
Guarantee Business 84
Fund Management and Treasury Operation 84
Investment 85
Loans and Advances 86
Industrial Credit 88
Credit Lines 89
Loan to Power and Health Sector 90
Syndication Financing 90
Green Banking Financing 91
SME Financing 92
NGO Linkage Programs of ABL 93
Foreign Aided Credit Programs of ABL 93
Agriculture and Rural Credit 95
Loan Classification and Provisioning 96
Loan Recovery Activities 96
Six Subsidiary Companies of ABL 97
Agrani Equity & Investment Limited 97
Agrani SME Financing Company Limited 100
Agrani Exchange House Private Limited, Singapore 102
Agrani Remittance House Sdn. Bhd., Malaysia 103
Agrani Remittance House Canada Inc. 104
Agrani Exchange Company (Australia) Pty. Limited 105
Financial Performance 106
Total Operating Income and Operating Expenditure 106
Net Interest Income, Operating Profit 106
Capital Adequacy Ratio 107
Automation and Modernization 108
Overall Automation 109
Contents
Online Banking 110
BACH, BEFTN, SWIFT, e-GP 112
ATM, Mobile Banking 113
Agent Banking 114
Distribution of SEQAEP Stipend 115
Online CIB Reporting 116
Newsletter 116
Audit & Inspection during 2012 116
Business Risk Management 118
Credit Rating 120
Implementation of Basel II 121
Corporate Social Responsibility 121
HR Management and Development 122
Planning, Recruitment, Promotion & Departure 122
Training and Development 124
Contribution to National Exchequer 127
Outlook for 2013 128
Preparation of Financial Statements 128
Dividend Declaration 129
Appointment of Auditors 129
Acknowledgements 129
Corporate Governance 131
Meetings of the Old Board during 2012 132
Meetings of the New Board during 2012 132
Independent Directors 133
Audit Committee of the Old Board 133
Role of Audit & Inspection Division 134
Role and Function of Internal Control & Compliance Division 134

Contents
Annual Report 2012 05
06
Bangladesh Banks Guideline for Corporate Governance 135
Directors Statement of Responsibilities 138
Report of the Board Audit Committee 139
Auditors Report & Audited Financial Statements 141
Auditors Report 142
Consolidated Balance Sheet 144
Consolidated Off Balance Sheet Items 145
Consolidated Profit and Loss Account 146
Consolidated Cash Flow Statement 147
Consolidated Statement of Changes in Equity 148
Consolidated Liquidity Statement 149
Notes to the Financial Statements 156
Nostro Accounts Outside Bangladesh 215
Details of Advance Tax and Provision of Taxation 216
Fixed Assets Including Land, Buildings, Furniture and Fixtures 217
Highlights on the Overall Activities of the Bank 222
Islamic Banking Unit of ABL 223
Auditors Report & Financial Statements of 4 Subsidiary Companies 227
Agrani Equity & Investment Limited 227
Agrani SME Financing Company Limited 242
Agrani Exchange House Private Limited, Singapore 267
Agrani Remittance House Sdn. Bhd., Malaysia 291
Circle Offices 312
Zones 313
Corporate Branch Offices 314
AD Branch Offices 315
Zone-wise List of Branches 318
Glossary of Acronyms 323
Contents
Presentation of Performance 22
Operating Profit 22
Net Asset Value Per Share 22
Deposit 22
Net Loans and Advances 22
Shareholders Equity 23
Cost to Income Ratio 23
Non Interest Income 23
Non Performing Assets 23
Major Achievements in 2012 24
Highlights of 2012 28
Presentation of Key Financial Information 37
Deposit Mix of 2012 37
Advance Deposit Ratio 37
Loans & Advance Matrix 2012 37
Total Classified Loans in Percentage 37
Net Classified Loans to Net Loans in Percentage 37
Constituent of Assets 2012 37
Fixed Assets Growth 38
Capital Growth 38
Growth of Advances 2012 38
Growth of Deposits 2012 38
Asset Portfolio 80
Deposit Mix 2012 81
Country-wise Remittance 2012 83
Investment 2012 86
Sector-wise Position of Loans 87
Graphs
Annual Report 2012 07
Five Years' Performance at a Glance 20
Distribution of Shares 32
Shares held by Directors as on 31 December 2012 32
Financial Highlights 35
Key Ratios 36
Capital Structure 53
Balance Sheet Exposure : Region-wise 55
Off Balance Sheet Exposure : Region-wise 55
Credit Exposure : Sector-wise 55
Contribution to CSR Activities 64
Sources of Fund 80
Asset Portfolio 80
Types of Deposit 81
Bank-wise Position of Remittance 82
Country-wise Remittance 83
Item-wise Income of Treasury 85
Investment 2012 and 2011 86
Sector-wise Loans 2012 and 2011 87
Comparative Study of Project Loans 88
Credit Lines 89
SME Position of ABL in 2012 93
Recovery Position of Classified and Overdue Loans & Advances 97
Appropriation of Profit 106
Details of Capital Adequacy 107
Audit Plan for the Year 2013 117
Credit Rating 120
CSR Activities of 2012 122
Training Courses in 2012 125
Workshops in 2012 126
Contribution to National Exchequer 127
Meetings of the Board During 2012 132
Meetings of the Board Audit Committee 2012 133
08
Tables
Corporate Profile
As on 31.12. 2012
Genesis Agrani Bank Limited (ABL) was incorporated as a State owned
Commercial Bank (SCB) on 17 May 2007 under the Companies Act 1994.
Agrani Bank emerged as a Nationalized Commercial Bank (NCB)
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 Peoples Republic of Bangladesh & the Board of
Directors of ABL with retrospective effect from 1 July 2007.
Legal Status Public Limited Company (governed by the Bank Companies Act 1991)
Chairman Khondoker Bazlul Hoque, PhD
Managing Director & CEO Syed Abdul Hamid, PhD, FCA
Company Secretary Badal Chandra Dey
Registered Office 9/D Dilkusha Commercial Area Dhaka 1000 Bangladesh
Authorised Capital Tk. 2500.00 Crore
Paid up Capital Tk. 991.29 Crore
Operating Profit Tk. 1006.74 Crore
Credit Rating By CRISL (Rating declared on 26 September 2012)
Entity Rating 2011 Long Term Short Term
(As Government Guaranteed Bank) AAA ST- 1
Surveillance Rating 2011
(Stand Alone Basis)
Outlook 2011 Stable
Employees 13,890 (9,917 officers and 3,973 staffs)
Branches 889
Subsidiary Companies 6
Phone +88-02-9566153-4, +88-02-9566160-9, +88-02-9566074-5
Fax +88-02-9562346, +88-02-9563662, +88-02-9563658
SWIFT AGBKBDDH
Website www.agranibank.org
E-mail agrani@agranibank.org info@agranibank.org
A+ ST- 2
Annual Report 2012 09
Vision
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
To operate ethically and fairly within the stringent
framework set by our regulators and to assimilate ideas
and lessons from best practices to improve our business
policies and procedures to the benefit of our customers
and employees.
Motto
To adopt and adapt modern approaches to stand supreme
in the banking arena of Bangladesh with global presence.
Values
We value in integrity, transparency, accountability, dignity,
diversity, growth and professionalism to provide high level
of service to all our customers and stakeholders inside and
outside the country.
10
Strategic Objectives
1. Winning at least 6.50 percent share of deposits and 5.50 percent
share of loans and advances of Bangladeshi market.
2. Gaining competitive advantages by lowering overall 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 and
services.
Ethical Standards
1. Be Trustworthy: 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 and 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 utmost respect 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. We are pro-active and foresighted for green office and green
economy.
Annual Report 2012 11
12
Notice of the Sixth
Annual General Meeting
Notice is hereby given to all Shareholders of Agrani Bank Limited that the 6th
Annual General Meeting of the Company will be held on 6th October 2013 at
7.30 PM, room Bakul of Rupashi Bangla Hotel in Dhaka, to transact the
following business and adopt necessary resolutions:
Agenda
1. To approve the minutes of the 5th Annual General Meeting held on 26th
July 2012.
2. To receive, consider and adopt the Audited Financial Statements of the
Bank for the year ended 31 December 2012 together with the Report of the
Directors and the Auditors Report thereon.
3. To elect /re-elect Directors.
4. To appoint Auditors for the year 2013 and to fix their remuneration.
5. To transact any other related business with the permission of the Chair.
By Order of the Board of Directors
Badal Chandra Dey
Company Secretary Dated : 21 September 2013
Letter of
Transmittal
To
All shareholders
Registrar of Joint Stock Companies & Firms
Securities and Exchange Commission
Dhaka.
Sub: Annual Report for the year ended 31 December 2012.
Dear Sir (s)
We are pleased to enclose herewith a copy of the Annual Report
2012, together with the Audited Financial Statements of Agrani Bank
Limited and its Subsidiary Companies - Agrani Equity & Investment
Limited, Agrani SME Financing Company Limited, Agrani Exchange
House Private Limited, Singapore and Agrani Remittance House
Sdn. Bhd., Malaysia for your kind information and record.
Yours sincerely
Syed Abdul Hamid, PhD, FCA
Managing Director & CEO
Annual Report 2012 13
Board of
Directors
Chairman
Khondoker Bazlul Hoque, PhD
Professor
Department of International Business
University of Dhaka
Directors
Arastoo Khan
Additional Secretary, ERD
Ministry of Finance
Government of the Peoples Republic of Bangladesh
A.K. Gulam Kibria, FCA
Senior Partner
G.Kibria & Co., Chartered Accountants
Engineer Md. Abdus Sabur
Engineer and Industrialist
K.M.N. Manjurul Hoque Lablu
Chief Editor & Managing Director
Global News Agency
Niaz Rahim
Director
Rahim Afrooz Group of Company
Advocate Balaram Podder
Law Practitioner and Social Worker
Prof. Dr. Md. Abdur Rouf Sardar
Director
Bangladesh Medical College Hospital
Shameem Ahsan
IT Specialist and Entrepreneur
Md. Altaf Hossain Molla
DIG (Rtd.)
A B M Kamarul Islam
Joint Secretary (Rtd.)
Hasina Newaaz
Entrepreneur
Syed Abdul Hamid, PhD, FCA
Managing Director & CEO
Agrani Bank Limited
Company Secretary
Badal Chandra Dey
14
Board of
Directors
Arastoo Khan
Director
A K Gulam Kibria, FCA
Director
Engineer Md. Abdus Sabur
Director
K M N Manjurul Hoque Lablu
Diretor
Niaz Rahim
Director
Advocate Balaram Podder
Director
Prof. Dr. Md. Abdur Rouf Sardar
Director
Shameem Ahsan
Director
Md. Altaf Hossain Molla
Director
A B M Kamarul Islam
Director
Hasina Newaaz
Director
Syed Abdul Hamid, Phd, FCA
Managing Director & CEO
Khondoker Bazlul Hoque, PhD
Chairman
Annual Report 2012 15
16
Composition of
Committees
Credit Rating Company
Credit Rating Information and Services Limited (CRISL)
Nakshi Homes, 6/1/A Segun Bagicha, Dhaka 1000
Board Audit Committee
1. Ranjit Kumar Chakraborty
Chairman & Director of the Board
2. Shekhar Dutta
Member & Director of the Board
3. Nagibul Islam Dipu
Member & Director of the Board
4. Engineer Md. Abdus Sabur
Member & Director of the Board
5. A.K. Gulam Kibria, FCA
Member & Director of the Board
Board of Trustees of Agrani Bank limited
Employees Provident Fund Trust
1. K.M.N. Manjurul Hoque Lablu
Chairman & Director of the Board
2. Syed Abdul Hamid, PhD, FCA
Member & Managing Director & CEO
3. Md. Obayed Ullah Al Masud
Member & Deputy Managing Director
4. Mohammad Shams-Ul Islam
Member & Deputy Managing Director
5. A. K. M. Mujibur Rahman
Member & Deputy Managing Director
6. Muhammad Awal Khan
Member & Deputy Managing Director
7. Md. Nazrul Islam Farazi
Member & General Manager (CAD)
8. Md. Rafiqul Alam
Member & General Manager (Admin)
9. Md. Yusuf Ali
Member Secretary & DGM (CAD)
ACNABIN
Chartered Accountants
BDBL Bhaban (13th Floor)
12 Kawran Bazar C/A, Dhaka 1215
Legal Consultant
Mr. Shahjahan Majumder
Howladar Yunus & Co.
Chartered Accountants
67 Dilkusha C/A (2nd Floor)
Dhaka 1000
Income Tax Advisor
M/s L.R. Bhuiyan and Associates
6 Bijoy Nagar (2nd Floor), Dhaka 1000
Auditors
Management
Team
Syed Abdul Hamid, Phd, FCA
Managing Director & CEO
Md.Obayed Ullah Al Masud Mohammad Shams-Ul-Islam A. K. M. Mujibur Rahman Muhammad Awal Khan
Deputy Managing Directors
General Managers
Mizanur Rahman Khan Md. Nurul Haque Bhanu Roy Chowdhury Mohammad Jalal Uddin
Haradhan Chandra Das A. A Md. Shajahan Md. Nazrul Islam Farazi Md. Shahidullah
Badal Chandra Dey Hamidur Rahman Mobarak Hossain Md. Rafiqul Alam
Md. Moshiur Ali Md. Ali Hossain Prodhania Kalpana Saha Md. Delowar Hossain
Annual Report 2012 17
18
Management
Team
Deputy Managing Directors
Md. Obayed Ullah Al Masud
Mohammad Shams-Ul Islam
A. K. M. Mujibur Rahman
Muhammad Awal Khan
General Managers
Mizanur Rahman Khan
Md. Nurul Haque
Bhanu Roy Chowdhury
Mohammad Jalal Uddin
Haradhan Chandra Das
A. A. Md. Shajahan
Md. Nazrul Islam Farazi
Md. Shahidullah
Badal Chandra Dey
Hamidur Rahman
Mobarak Hossain
Md. Rafiqul Alam
Md. Moshiur Ali
Md. Ali Hossain Prodhania
Kalpana Saha
Md. Delowar Hossain
Managing Director & CEO
Syed Abdul Hamid, PhD, FCA
Deputy General Managers
A. S. M. Waliullah
Tazrina Ferdausi
Md. Mozammel Hoque
Md. Aminul Islam
Dr. Md. Emdadul Haque
Sahida Akhtar
Md. Rezaul Karim
Kazi Alamgir
Md. Yusuf Ali
Md. Mustafa Kamal Bhuiyan
Shamsuzzaman
Pankaj Roy Chowdhury
Md. Nazrul Islam
Md. Ruhul Amin
Md. Kamruzzaman
Md. Serajul Islam
Borhan Uddin Farook Ahmed
Md. Showket Islam
Md. Nurul Amin
Md. Harmuz Miah
Md. Kamruzzaman
A.B.M. Khalequzzaman
Md. Nurul Absar
Md. Anisur Rahman
Md. Shafiqur Rahman Sadique
Md. Golam Kabir
S.M. Nurul Ahsan
Md. Abdus Sattar
Babul Kumar Saha Roy
Md. Abdul Haque
Shirin Akhter
Selina Akhter
M. Habibur Rahman
Md. Abu Anis Sultan Mamun
Md. Rezaul Karim
Md. Khorshed Alam
Md. Sharif Ullah
Mrs. Rokeya Afroza
Md. Habibur Rahman
Md. Liakat Ali
Md. Akram Hossain
Md. Wali Ullah
Jahar Lal Roy
Md. Abul Basar Serneabad
Tapash Kumar Das Gupta
Md. Abul Hashem
Sk. Abdul Kader
Israt Ara
Shukanti Bikash Shanyal
Shekhar Chandra Biswas
Md. Hasan Suhrawardy
Md. Faruqe Ahmed
Md. Abdul Gafur
Md. Sanowar Hossain
Md. Hafizur Rahman
Md. Nurul Islam
Md. Wahiduzzaman
Tuheen Alam
Md. Monirul Islam
Selina Zaman
Belayet Hossain
A. M. Abid Hossain
Md. Lutfor Rahman
Mahmudul Ameen Masud
Bimalendra Saha
Arajit Kumar Das
Zahiruddin Khan
Shahreen Akhter
S. M. Babul Islam
Md. Akhtarul Alam
Sk. Md. Kamruzzaman
Md. Ismail Hossain
Mohammed Shawkat Ali
Abu Bakar Khan
Md. Benazir Kamal
Hazera Khatun
Syed Abdur Rahim
Md. Abdur Rahim
Md. Habibul Alam
Md. Abdus Salam Miah
Md. Anwarul Islam
Md. Nasir Uddin
Azizul Kabir
Kanai Lal Mali
Md. Abdur Rashid
Md. Nazmul Haque
Md. Abdus Salam Molla
Md. Jahangir Mondal
Muhammad Golam Mustafa
Sabbir Ahmed Chowdhury
A. B. M Abdul Mobin
Pratima Kundu
Md. Zakir Hossain Khan
Md. Hemayet Hossain
Md. Kazi Omar Faruque
Md. Amirul Islam
Zakia Begum
Md. Abdul Gafur
Tapash Sarker
Md. Fazle Halim
Md. Lutfar Rahman Sikder
Ashok Kumar Saha
Annual Report 2012 19
20
Five Years'
Performance at a Glance
Particulars 2012 2011 2010 2009 2008
Taka in crore
Balance Sheet
Authorized Capital 2,500 1,000 800 800 800
Paid-up Capital 991 901 547 497 248
Reserves 1,168 1,168 486 139 74
Revaluation Reserve on Investment in Govt. Securities 12 27 90 207 43
Retained Profit (Loss) (1454) 498 449 74 277
Total Equity 717 2,594 1,572 1,144 642
Total Deposits29,243 29,242 25,221 20,633 16,628 14,681
Core Deposit 9,932 9,255 8,505 7,357 7,209
i. Savings Deposit 8,926 8,532 8,013 6,966 6,486
ii. Deposit Pension Scheme 127 133 131 125 127
iii. Agrani Bank Pension Scheme 71 68 66 136 567
iv. Agrani Bank Bishesh Shanchay Scheme 808 522 295 130 29
Total Loans and Advances 21,266 19,409 16,326 12,224 11,336
Interest Suspense and Penal Interest 735 602 579 691 672
Provision for Loans and Advances 3,466 1,235 1,064 1,187 1,153
Net Loans and Advances 17,065 17,572 14,683 10,345 9,511
Net Investments 8,921 8,376 4,264 4,089 2,933
Fixed Assets 1,138 1,123 544 288 253
Total Assets 37,872 34,882 26,485 21,406 18,732
Net Current Assets 4,823 5,859 5,960 4,798 (6,854)
Operating Results
Total Income 3,700 3,301 2,402 1,636 1,498
Total Expenditure 2,693 1,827 1,316 992 865
Operating Profit before Amortization, Provision & Tax 1,007 1,474 1,086 644 633
Amortization of Valuation Adjustment 133 133 133 133 133
Provision during the year 2,738 607 312 185 211
Provision for Tax (2) 484 289 190 24
Net Profit (loss) after Amortization, Provision & Tax (1,862) 250 352 136 265
Financial Ratios
Earnings per share (187.84) 25.22 46.47 24.80 106.52
Cost of Fund in percentage 9.97 7.69 7.42 6.86 6.65
Return on Equity in percentage (259.94) 9.64 22.38 53.75 41.28
Return on Assets in percentage (4.92) 0.72 1.33 0.63 1.41
Net Interest Margin in percentage 1.61 3.83 6.25 4.61 4.24
Average Yield on Loan in percent (performing loan) 13.86 11.99 11.19 11.04 10.38
Loans as percentage of Deposit (AD Ratio) 72.72 76.95 79.13 73.51 77.21
Total Classified Loans to Total Loans in percentage 25.30 11.07 12.88 19.42 22.48
Net Classified Loans to Net Loans in % (including staff loan) 4.22 3.44 4.69 4.79 7.61
Five Years'
Performance at a Glance
Taka in crore
Particulars 2012 2011 2010 2009 2008
Capital Measures (As per Basel II)
Total Risk Weighted Assets 21,455 21,411 19,326 12,052 8,051
Core Capital (Tier-I) (1,320) 1,688 1,163 710 599
Supplementary Capital (Tier-II) - 665 616 281 138
Total Capital (1,320) 2,353 1,779 991 737
Tier-I Capital Ratio (6%) 8% 6% 6% 7%
Tier-II Capital Ratio - 3% 3% 2% 2%
Total Capital Ratio (6%) 11% 9% 8% 9%
Credit Quality
Non-Performing Loans (NPLs) 5,380 2,149 2,102 2,374 2,549
Provision for Unclassified Loans 254 293 230 131 116
Provision for Classified Loans 3,212 942 834 1,056 1,037
Share Information
No. of Shares Outstanding 9,91,29,404 9,01,17,640 5,46,52,400 4,96,84,000 2,48,42,000
No. of Shareholders 12 12 12 12 11
Dividend - Bonus Share - 10% 10% 10% 100%
Net Asset Value per Share (Taka) 72 288 288 230 258
Other Key Operational Data
Forex Business 37,482 44,869 30,332 17,801 21,175
i. Import 16,963 26,877 16,792 7,753 10,952
ii. Export 8,838 9,310 6,443 4,461 4,954
iii. Remittance 11,681 8,682 7,097 5,587 5,269
Guarantee Business 515 442 527 160 112
Branches 889 876 867 867 867
Employees 13,890 12,085 11,900 11,443 10,988
NOSTRO A/C with Foreign Banks 43 43 38 39 39
Exchange Houses (Remittance) 52 52 41 35 31
Foreign Correspondents 429 419 419 383 383
Subsidiary Companies 6 4 4 2 2
Annual Report 2012 21
Graphical Presentation
of Performance
2008 2009 2010 2011 2012
Operating Profit
6
3
3
6
4
4
1
,
0
8
6
1
,
4
7
4
1
,
0
0
7
Crore Taka
Crore Taka
Taka
Crore Taka
2008 2009 2010 2011 2012
Net Asset Value Per Share
2
5
8
2
3
0
2
8
8
2
8
8
7
2
2008 2009 2010 2011 2012
Deposit
1
4
,
6
8
1
1
6
,
6
2
8
2
0
,
6
3
3
2
5
,
2
2
1
2
9
,
2
4
3
2008 2009 2010 2011 2012
Net Loans and Advances
9
,
5
1
1
1
0
,
3
4
5
1
4
,
6
8
3
1
7
,
5
7
2
1
7
,
0
6
5
22
Crore Taka
Crore Taka
Crore Taka
Graphical Presentation
of Performance
2008 2009 2010 2011 2012
Cost to Income Ratio (%)
5
7
.
5
4
6
0
.
6
3
5
4
.
7
7
5
5
.
3
4
7
2
.
7
8
2008 2009 2010 2011 2012
Shareholders Equity
6
4
2
1
,
1
4
4
1
,
5
7
2
2
,
5
9
4
7
1
7
2008 2009 2010 2011 2012
Non-Performing Assets
2
,
5
4
9
2
,
3
7
4
2
,
1
0
2
2
,
1
4
9
5
,
3
8
0
2008 2009 2010 2011 2012
Non-Interest Income
5
4
3
6
2
4
1
,
0
0
2
1
,
0
5
81
,
3
1
1
Annual Report 2012 23
Major Achievements
in 2012
Operating profit stood at Tk. 1,007 crore at the end of 2012.
Foreign remittance increased to Tk. 11,681 crore in 2012 from
Tk. 8,682 crore in 2011.
Paid-up capital increased to Tk. 991.29 crore in 2012 from Tk. 901 crore in 2011.
Shareholders Equity stood at Tk. 717 crore at the end of 2012.
1 Chief Security Officer, 9
Principal Officers, 1,447 Senior
Officers and 569 Officers were
recruited in the year 2012.
Credit deposit ratio reduced to
72.72 percent in 2012 from 76.95
percent in 2011.
Loans and Advances increased to Tk. 21,266
crore in 2012 from Tk. 19,409 crore in 2011.
Return on Investment increased 8.70 percent in
2012 from 6.12 percent in 2011.
Investment increased to Tk. 9,242 crore in 2012 from
Tk. 8,533 crore in 2011.
24
Chairmans
Message
Annual Report 2012 25
26
Annual Report 2012 27
Highlights of
2012
Deposits
Tk. 29,243 crore
Operating Prot
Tk. 1,007 crore
Number of
Branches 889
Number of Foreign
Correspondents 429
Number of
Employees
13,890
Equity
Tk. 717 crore
Foreign Remittance
Tk. 11,681 crore
28
Managing
Director &
CEOs
Round Up
ABL has the motto for breathing ethical
banking in every sphere of business.
In fact, banking is a long term business
which is based on trust.
Each of our staff-member is highly
concerned to boost the trust of all
of our customers and stakeholders.
We are strengthening our supervision
as it is the main instrument
for building of trust in banking.
Annual Report 2012 29
30
such industries as have Effluent Treatment Plants (ETPs)
and other environment friendly measures put in place.
ABL also provides small loan on bio-gas and solar power
plants so that the practice of pollution free investment
goes up, making the planet suitable for our next
generation to live on.
Annual Report 2012 31
Shareholders
Information
Distribution of Shares Number of Shares
31 December 2012 31 December 2011
Government of Bangladesh 9,91,29,392 9,01,17,628
Directors 12 12
General Public - -
Total 9,91,29,404 9, 01,17,640
Shares held by Directors
1 Khondoker Bazlul Hoque, PhD Chairman 1 1 0%
2 Arastoo Khan Director 1 1 0%
3 A.K. Gulam Kibria, FCA Director 1 1 0%
4 Engineer Md. Abdus Sabur Director 1 1 0%
5 K.M.N. Manjurul Hoque Lablu Director 1 1 0%
6 Niaz Rahim Director 1 1 0%
7 Advocate Balaram Podder Director 1 1 0%
8 Prof. Dr. Md. Abdur Rouf Sardar Director 1 1 0%
9 Shameem Ahsan Director 1 1 0%
10 Md. Altaf Hossain Molla Director 1 1 0%
11 A. B. M. Kamarul Islam Director 1 1 0%
12 Hasina Newaaz Director 1 1 0%
Dividend Distribution
i) 100% stock dividend i.e. 1 bonus share for every 1 share for the year 2008.
ii) 10% Stock dividend i.e. 1 bonus share for every 10 shares for the year 2009.
iii) 10% Stock dividend i.e. 1 bonus share for every 10 shares for the year 2010.
iv) 10% Stock dividend i.e. 1 bonus share for every 10 shares for the year 2011.
Sl.
No.
Particulars Status Share Change Closing Position
32
Annual
General Meetings
The Second Annual
General Meeting of ABL
held on 17 August 2009
The First Annual
General Meeting of ABL
held on 14 August 2008
The Third Annual
General Meeting of ABL
held on 29 April 2010
Annual Report 2012 33
Annual
General Meetings
The Fifth Annual
General Meeting of ABL
held on 26 July 2012
The Fourth Annual
General Meeting of ABL
held on 30 April 2011
Signing of Accounts 2012
by the Directors of ABL
as on 30 June 2013
34
Performance during the year
Interest revenue 2,389.48 2,243.47 6.51%
Interest cost 1,991.03 1,196.60 66.39%
Net interest revenue 398.27 1,046.87 (61.95%)
Income from investment 804.41 522.65 53.91%
Other operating revenue 506.36 535.15 (0.54%)
Total operating revenue 1,709.04 2,104.67 (18.80%)
Salary & allowances 484.07 445.23 8.72%
Other operating cost 218.23 185.18 17.85%
Total operating cost 702.30 630.41 11.41%
Profit before amortization, provision and tax 1,006.74 1,474.26 (31.71%)
Amortization ( valuation adjustment) 132.95 132.95 -
Provision for loans and advances 2,488.80 436.50 470.17%
Other provision 249.26 170.31 46.36%
Profit before tax (1,864.27) 734.50 (353.81%)
Provision for tax (2.21) 484.50 (00.46%)
Net profit after tax (1,862.06) 249.99 (844.85%)
Financial
Highlights
2012 2011 Change
Paid up capital 991.29 901.18 10.00%
Total shareholders equity 716.35 2,594.26 (72.38%)
Deposits 29,242.92 25,220.83 15.95%
Total contingent liabilities and commitments 11,241.87 11,339.28 (0.86%)
Loans and advances 21,266.30 19,408.56 9.57%
Amount of classified loans 5,380.13 2,148.85 150.37%
Provision kept against classified loans 3,212.03 942.14 240.93%
Investments 9,241.98 8,533.13 8.31%
Interest earning assets 19,927.09 18,511.97 7.64%
Non interest earning assets 17,944.55 16,370.10 9.62%
Fixed assets 1,138.07 1,122.67 1.37%
Total assets 37,871.64 34,882.07 8.57%
2012 2011 Change
At the end of the year
Annual Report 2012 35
Key
Ratios
1 Net profit ratio (50.32%) 7.57%
2 Cost to income ratio 72.78% 55.34%
3 Return on assets (4.92%) 0.72%
4 Return on Equity (After amortization, provision & tax) (259.94%) 9.64%
5 Non interest expenses to total assets 1.85% 1.81%
6 Non-interest income to total assets 3.46% 3.03%
7 Interest margin to total assets 1.05% 3.00%
8 Earnings per share (187.84) 25.22
9 Net asset value per share (Tk.) 72 288
10 Cost of fund 9.97% 7.69%
11 Return on investment 8.70% 6.12%
2012 SI. No. Particulars
Particulars
2011
Dividend ratios
At the end of the year
Profitability and performance ratios
1 Current ratio 1.60 1.67
2 Debt to total assets ratio 0.98 0.93
3 Loans & advances to deposit ratio 72.72% 76.95%
4 Loans & advances to total assets ratio 56.15% 55.64%
5 Provision to total loans & advances 16.30% 6.36%
2012 SI. No. 2011
2012 SI. No. 2011
2012 SI. No. 2011
1 Stock dividend - 10%
Capital adequacy ratios
Note:
1. Since ABL is not a listed company, its market price per share is not available. So, P/E
ratio of the Bank could not be provided.
2. Last year's figures rearranged wherever necessary.
1 Capital adequacy ratio (6.15%) 10.99%
i. Tier I Capital (6.15%) 7.88%
ii.Tier II Capital - 3.11%
36
Graphical Presentation of
Key Financial Information
2008 2009 2010 2011 2012
7
7
.
2
1
7
3
.
5
1
7
9
.
1
3
7
6
.
9
5
7
2
.
7
2
Advance Deposit Ratio (%) Deposit Mix of 2012 (%)
Bills Payable
1.60
Savings Bank
Deposits
30.53
Current and other
Deposits 13.80
Fixed Deposits
54.07
2008 2009 2010 2011 2012
Total Classified Loans (%)
2
2
.
4
8
1
9
.
4
2
1
2
.
8
8
1
1
.
0
7
2
5
.
3
0
2008 2009 2010 2011 2012
Net Classified Loans to Net Loans (%)
7
.
6
1
4
.
7
9
4
.
6
9
3
.
4
44
.
2
2
I
n
v
e
s
t
m
e
n
t
s
F
ix
e
d

A
s
s
e
t
s
O
t
h
e
r

A
s
s
e
t
s
L
iq
u
id

A
s
s
e
t
s
L
o
a
n
s

&

A
d
v
a
n
c
e
s
Constituent of Assets 2012
9
2
4
2
1
1
3
8
3
3
5
8
2
8
6
7
2
1
2
6
6
Loans & Advances Matrix 2012
Cash Credit
5,489
Bills Purchased &
Discounted
565
Loans
1,3845
Overdrafts
1,367
Crore Taka
Crore Taka
Annual Report 2012 37
Graphical Presentation of
Key Financial Information
2010 2011 2012
Capital Growth
2
,
5
9
4
1
,
5
7
2
7
1
7
Crore Taka
2008 2009 2010 2011 2012
Fixed Assets Growth
2
5
3
2
8
8
5
4
4
1
,
1
2
3
1
,
1
3
8
Crore Taka
Growth of Advances 2012 (%)
1
6
.
2
4
9
.
5
7
National Agrani
Growth of Deposits 2012 (%)
National Agrani
2
0
.
0
4
1
5
.
9
5
38
Capital Adequacy as per BASEL-II
Minimum Capital Requirement (MCR) under Risk Based Capital (Basel-II) Taka in Crore
A. Eligible Capital : 2012 2011
1. Tier-1 (Core Capital ) (1,319.54) 721.98
2. Tier-2 (Supplementary Capital) - 665.47
3. Tier-3 (eligible for market risk only) - -
4. Total Eligible Capital (1+2+3) : (1,319.54) 1,387.45
B. Total Risk Weighted Assets (RWA): 21,455.30 21,411.28
C. Capital Adequacy Ratio (CAR) (A4 / B)*100 (6.15%) 6.48%
D. Core Capital to RWA (A1 / B)*100 (6.15%) 3.37%
E. Supplementary Capital to RWA (A2 / B)*100 - 3.11%
F. Minimum Capital Requirement (9% of RWA) 2,145.53 2,141.13
G. Capital Surplus / (Shortfall) (3,465.07) 753.68
Eligible Capital
Tier-1 (Core Capital)
Fully Paid-up Capital 991.29 901.18
Statutory Reserve 413.98 413.98
General Reserve 0.50 0.50
Retained Earnings (1,454.35) 497.83
Sub-Total: (48.58) 1,813.49
Deductions:
Valuation Adjustment (Intangible assets) 664.84 -
Investments in Subsidiaries which are not consolidated 130.77 125.77
Benefit of Deferred Tax Assets 475.35 -
Total Eligible Tier-1 Capital (1,319.54) 1,687.72
Tier-2 (Supplementary Capital)
General Provision (UC + SMA + Off B/S exposure+ 3% Consumer Finance) 366.47 400.85
Assets Revaluation Reserves up to 50% 376.60 376.92
Revaluation Reserve for Approved Securities up to 50% 5.86 13.47
Revaluation Reserve for Equity Instrument up to 10% - -
Other(Balance of Exchange Equalization A/C) 2.63 -
Sub-Total 751.56 791.24
Deductions: Investments in Subsidiaries which are not consolidated 130.77 125.77
Total Eligible Tier-2 Capital 620.79 665.47
Tier-3 Supplementary Capital - -
Total Supplementary (Tier 2+ Tier 3) Capital - 665.47
Total Eligible Capital (Tier 1+ Tier 2+ Tier 3) Capital (1,319.54) 2,353.19
Maintaining Capital Adequacy
Banks capital adequacy was constrained during the year due to(i) issuance of Bond by the Government against
BPC, (ii) non-payment of LTR liability of some importing customers of food, raw cotton and fertilizer, (iii)
expansion of credit especially on power sector, (iv) increase of interest cost on deposit of Tk. 794 crore, (v)
introduction of new classification rules of Bangladesh Bank taking into consideration the international norms as
per agreement with the IMF. Consequently, classified loans and required provisions have increased to a large
extent. It has reduced profitability which adversely affected capital adequacy. However, we are expecting
improvement in regards to classified loan, required provision as well as capital adequacy in the coming future.
Annual Report 2012 39
Products and
Services
1. Deposit
a) Taka Account
i) Current Deposit (CD)
ii) Savings Deposit (SB)
iii) Fixed Deposit (FDR)
iv) Special Notice Time Deposit (SNTD)
v) Non Resident Special Taka Account (NRTA)
vi) NR Investors Taka Account (NRIT)
vii) Agrani Bank Pension Scheme (APS)
viii) Agrani Bank Bishesh Shanchay Scheme (ABS)
ix) Agrani Double Benefit Scheme (ADBS)
x) Monthly Deposit Scheme (MDS)
xi) Monthly Income Scheme (MIS)
xii) Students Savings A/C (School Banking)
xiii) Small Life Insurance Policy Holders A/C
xiv) Farmers A/C
xv) Freedom Fighters A/C
xvi) Other Beneficiaries A/C under Social
Securities Program
b) Foreign Currency Account
i) Foreign Currency (FC) A/C
ii) Non Resident Foreign Currency Deposit (NFCD) A/C
iii) Resident Foreign Currency Deposit (RFCD) A/C
iv) Exporters Retention Quota (ERQ) A/C
2. Loan & Advance
a) Continuous Loan
i) Cash Credit (Hypo)
ii) Cash Credit (Pledge)
iii) Secured Overdraft (SOD)
b) Term Loan
i) Inland Bill Purchase (IBP)
ii) Export Cash Credit
iii) Industrial Credit (IC)
iv) Housing Loan (General & Commercial)
v) Consumer Credit
vi) Loan for Overseas Employment
vii) Weavers Credit
c) Rural & Agro Credit
i) Crop Loan
ii) Fishery Loan
iii) Animal Husbandry Loan
iv) Agri Machinary Loan
v) Rural Transport Loan
vi) Swanirvar Loan
vii) Poverty Alleviation Loan
d) Small and Medium Enterprise Loan
i) Service Sector Loan
40
Products and
Services
ii) Trading Sector Loan
iii) Manufacturing Sector Loan
e) Import Finance
i) Loan against Imported Merchandise (LIM)
ii) Loan against Trust Receipt (LTR)
iii) Payment against Document (PAD)
f) Export Finance
i) Export Cash Credit
ii) Packing Credit (PC)
iii) Local / Foreign Bills Purchased (FBP)
iv) Loan against Export Development Fund (EDF)
v) Advance against Cash Incentive (Subsidy,
Assistance)
vi) Secured Overdraft (SOD)
3. Treasury
a) Money Market
i) Maintaining CRR and SLR
ii) Call Money Transaction
iii) Term Placement (FDR)
iv) Treasury Bills
v) Treasury Bonds
vi) Secondary Trading of Govt. Securities
vii) Repo
viii) Reverse Repo
ix) Custodian Services
x) Other Investments
b) Foreign Exchange Market
i) Selling Foreign Currency for Import Payment
ii) Buying Foreign Currency against Export
Proceeds
iii) Fixation of Exchange Rate
iv) Foreign Currency Buying and Selling
v) SWAP Transactions
vi) Forward Transaction
vii) Term Placement
4. Letter of Credit
i) Letter of Credit - Sight
ii) Letter of Credit - Usance
iii) Back to Back L/C
5. Letter of Guarantee
i) Advance Payment Guarantee
ii) Bid Bond
iii) Performance Guarantee
iv) Shipping Guarantee
v) Guarantee - Others
vi) Standby Credit
Annual Report 2012 41
Products and
Services
6. Other Foreign Exchange Services
i) Documentary Bill Collection
ii) Advanced Payment for Import & Export
iii) Foreign Remittance (Incoming & Outgoing)
iv) Foreign Currency Endorsement against
Passport
v) Issuance of Draft, TT
vi) Collection of Draft, Cheque, TC
vii) Opening of Student File, Medical File
7. Cash Service
i) ATM Service
ii) Cheque Encashment
iii) Foreign Currency
8. Fund Transfer
i) Inter-Branch Money Transfer
ii) SWIFT
iii) Telegraphic Transfer (TT)
iv) Issuing Foreign Draft
v) Encashing Foreign Draft
vi) Bangladesh Electronic Fund Transfer
Network (BEFTN)
vii) Bangladesh Automated Clearing
House (BACH)
viii) Online Deposit to Accounts
9. Value Added Service
i) Locker Service
ii) Utility Bill Collection
10. Merchant Banking Service
i) Issue Management
ii) Underwriting
iii) Portfolio Management
11. Islamic Banking Service
a) Deposit
i) Al Wadiah Current A/C
ii) Mudaraba Savings A/C
iii) Mudaraba STD A/C
iv) Mudaraba Term Deposit
v) Mudaraba Special Scheme Deposit
b) Investment
i) Bai Murabaha (Pledge)
ii) Bai Muazzal (Hypo)
iii) Higher Purchase Shirkatul Meilk
iv) Bai Salam
42
43 Annual Report 2012
Risk
Management
44
Risk is defned as probability or threat of a damage, injury,
liability, loss or other negative occurrence that is caused
by external or internal vulnerabilities and that may be
neutralized through preemptive action. It is unexpected
and negative outcome of an institute or an individual. So,
for every large institute like Banking, it is a must to manage
risk for its better sustainability. ABL is one of the largest
SCBs in the country and it has a number of subsidiary
companies at home and abroad. It has a large exposure
of assets and liabilities shown on balance sheet and other
related accounting papers. So the prime objective of its
management is to safeguard its assets and comply with
the obligations or liabilities from any arisen risk during its
operation. Many types of risks may arise in banking and
NBFIs sectors which widely discussed and hedged are as
follows:
1. Credit Risk
2. Asset-Liability Management Risk
3. Money Laundering Risk
4. Foreign Exchange Risk
5. ICC Risk
6. ICT Risk
Strategy of Risk Management
Risk is inherent in every business. Todays global and
dynamic business entities are facing various dimensions
in the feld of risks. So before introducing a new product or
extension of existing products it is inseparable to use tools
to mitigate future risks. Considering various types of risks
ABL has adopted strong and integrated risk management
strategies in line with its regulatory bodies directives and
Bangladesh Governments policies. ABL is a state-owned
entity. So it has a direct accountability to the mass people
and ABL tries its best to comply with the commitment by:
Growth of business
Risk adjusted performance measurement
Consistency of earnings
Quality and transparency of management
ABL has an independent division named Core Risk
Management & Basel-II Implementation Division. This
Division collects data from other divisions monthly,
quarterly, half yearly or yearly as available. Then fndings
of the segments are discussed in monthly meeting of
the division chaired by the CEO& MD of the Bank. If any
deviation or deterioration is found, immediate corrective
measures are taken. Bangladesh Bank, as a regulatory
body, has prescribed format to refect Banks total scenario.
ABL complies with the directives & submit to concerned
department of Bangladesh Bank.
Risk Management Process
Banking business is mainly a business of lending and
borrowing. It collects deposits from the depositors by
paying different rate to different deposit products and
invests as loans and advances to the borrowers at higher
rate. The spread between the two is Banks proft. So, a
risk always inherits from the counterparty. Sometimes the
borrowers are unwilling to pay back money they borrowed.
So, necessary steps are being taken prior to risky events.
These risks can be measured fnancially in line with
international standard. Capital is sized for every probable
risk. ABL takes well-calculated business risks to safeguard
its assets and proftability as per the adopted guidelines of
BB. The board of directors is the highest authority to approve
the policies and process submitted by the management.
After approval, the management implements through
different divisions of head offce and branches in feld level.
ABL has (i) Audit Committee (ii) Management Committee
(MANCOM) (iii) Credit Committee (CRECOM) (iv) Asset-
Liability Management Committee (ALCOM) to monitor and
review activities relating to risks and development.
1. Credit Risk
Risk arising from noncompliance of commitment of
the counterparty or the borrower is defned as Credit
risk. Lending with terms and conditions in line with
regulatory bodys directives and governments policies
is the main business of a bank. ABL had a sophisticated
risk management system from the very beginning of its
operations. But at todays global and domestic socio-
economical scenario it has got a new dimensional
nimbleness. So before sanctioning a credit, it is a must to
analyze future risk. For this, ABL has a dedicated team of
offcers and executives to assess the future (simple and
complicated) uneven situation that may hinder the return
of lending with its spread. To overcome this adversity, ABL
has a rigorous policies and procedures on various key
risk factors regarding initiation to the settlement of a loan
for the safeguard of Banks assets. Bank selects quality
borrowers who have the ability or potentiality of willingness
to honor all credit commitments in stipulated time. The
potentiality of the project is carefully justifed in this regard.
In ABL a thorough assessment of risk is done before
granting or extending credit and a plan in this regard is
worked out. The Bank has segregated duties among the
offcers and executives involved in credit related activities.
The total team works accordingly. ABL has a system of
tracking risky and potentially weak loan accounts. Bank
has dedicated teams to monitor and supervise them.
Respective assigned person promptly reports to delegated
authority to take measure so that the loan may not be
downgraded and hindered the assets portfolio of the bank.
To co-ordinate with higher management and feld level,
Risk
Management
45 Annual Report 2012
Recovery Division is assigned to monitor and report the
NPLs status. This division chalks out plans to recover
classifed loans including write-off loans. It reviews progress
quarterly and reports to the higher management. The
bank determines the forced sale value (FSV) of collaterals
held against credits. Collaterals are segregated into (i)
Financial and (ii) Physical collateral. The objective of credit
risk management is to bring back lended money safely and
strengthen the bank as well as national economy.
Credit Risk Assessment
To extend credit facilities ABL takes qualitative and
quantitative measure for the viability of the proposed
project. By the option qualitative means persons fnancial
and business deal, commitment and viability of the project
in the context of national economy. On the other hand
quantitative means the part that can be numerically
assessed. Credit risk is hedged or mitigated with following
tools and mechanisms:
a) Proper documentation: After receiving a credit
proposal, relevant papers to be asked from the
counter party and fll up them properly. On the
other hand, some prescribed forms are also
supplied in which terms and conditions in line with
Banks internal and other regulatory bodys policy
are refected. After examining by both ends, the
bank and the counterparty reach to an agreement.
b) Collateral: Collateral offered is the main tool to
mitigate future credit risk. So collateral offered
against credit facility is properly valued and
verifed by the concerned offcer/manager and
revalued and re-verifed by the enlisted surveyor
of the bank. If found satisfactory in terms of
economic consideration and easily transferable in
Banks favor, then collateral is acceptable.
c) Insurance coverage: To address future risk
on collateral, adequate insurance coverage is
ascertained. Customers desire for not taking
required insurance policy must be considered as
deviation.
d) Syndicated loans: Syndicated loans are
assessed independently by ABL. If its quality,
returns and risks are not acceptable, ABL does
not depend only on lead arrangers report.
2. Asset-Liability Management Risk
Asset-liability risk or liquidity risk is the risk of a banks
earnings as well as capital which arises from inability to
meet obligations in time when they become due without
incurring unacceptable losses. Liquidity risk arises as a
result of mismatch during the time of cash fows. When a
bank does not have suffcient fnancial resources to meet
its obligations and commitments, as they fall due, then
the bank makes its payment at an excessive cost. Infact,
liquidity risk is considered a major risk for Banks.
The objective of liquidity risk management is to ensure
that all foreseeable funding commitments and deposit
withdrawals can be met when due. Considering all these
factors Agrani Bank Limited has established an effective
ALM process, which performs the followings:
Maintain required /adequate liquidity at all times.
Maintain diversifed and stable funding base
comprising of core, retail, corporate and
institutional deposits.
Leverage the negative correlation between
liquidity and proftability without taking any
excessive risk.
To meet short term cash fow demands through
asset maturities and customer deposits.
Trading risk management.
Regulatory compliance.
Bank's overall liquidity risk management function is carried
out by its Treasury Division. To maintain the activities, ABL
has Asset-Liability Committee (ALCOM) headed by MD &
CEO and comprises senior management members from
key areas of the bank under approved policy guidelines.
ABL follows a standard practice to conduct ALCOM
meeting at least once in a month. On its monthly meeting,
the ALCOM takes necessary action regarding liquidity
based on historical requirements, current liquidity position,
anticipated future funding requirement, sources of fund,
options for reducing funding need, present and future
earning capacity, present and planned capital position,
market interest rate, maturity gap analysis etc. Decisions
taken in the ALCOM meetings are duly recorded and
action plans are developed and implemented accordingly
to optimize the fnancial performance of the bank.
3. Money Laundering Risk
Money laundering is the process by which large amount of
illegally obtained money is given the appearance of having
originated from a legitimate source. Money laundering
refers to a fnancial transaction that aims to conceal the
identity, source, and destination of illicitly-obtained money.
Credit Risk ALM Risk ML Risk Forex. Risk ICC Risk ICT Risk
Risk
46
ABL is committed to the highest standards of Anti- Money
Laundering (AML) compliance as per the provisions of the
prevailing Money Laundering Prevention Act, the guidance
notes of Bangladesh Bank and other concern authorities.
As part of money laundering risk management, the Bank
carries out the following activities.
i) KYC system: ABL has been maintaining a unique KYC
system under the following elements:
a) Customer Acceptance Policy: ABL has a clear
customer acceptance policy with explicit criteria
to ensure that customer/entity is using their real
name and not involved in terrorism or other illegal
activities.
b) Customer Identifcation Procedure: ABL has a
unique customer Identifcation procedure such as
a new customer must be verifed by a bonafde
customer. Concerned bank offcer also justifes
his/her objective before establishing relationship
with the bank.
c) Monitoring of Transactions: To reduce risk,
effective KYC procedure is maintained for
continuous monitoring of our customer transaction
and their normal behavior.
d) Risk Management: ABL maintains internal
audit and compliance functions to reduce money
laundering risk.
ii) Cash Transaction Report (CTR): ABL sends Cash
Transaction Report (CTR) to the Bangladesh Bank in every
month for the customers depositing or withdrawing cash
above Tk 1.00 million in any day at any of its branches.
iii) Suspicious Transaction Report (STR): ABL also
reports to the Bangladesh Bank on Suspicious Transaction
as and when it is identifed.
iv) Transaction Profle (TP): In TP every customer must
specify the types, probable frequency and amount of
transactions of his account.
v) Data Update: Once validated, profles are periodically
updated as soon as there is a change; whether its a
change of address or the addition of a new relationship/
information to the profle.
vi) Guideline: ABL has its own policy guidelines on money
laundering prevention and combating the fnancing of
terrorism approved by the Board.
vii) Training: Regular training is being given to employees
to update their knowledge and to make them aware of their
responsibilities in combating against money laundering
and terrorism fnancing risk on the banks part.
viii) CAMLCO and BAMLCO: ABL has its CAMLCO and
BAMLCO to ensure regular monitoring, compliance and
accountability both at Head Offce and at Branch level in
line with Bangladesh Banks instruction.
4. Foreign Exchange Risk
Managing foreign exchange risk is a fundamental
component in the safe and sound management of all
institutions having exposures in foreign currencies. Foreign
exchange risk is defned as the risk that a bank may suffer
losses as a result of adverse exchange rate movements
during a period in which it has an open position either
spot or forward currency. Investors or businesses face an
exchange rate risk when they have assets or operations
across national borders or if they have loans or borrowings
in a foreign currency.
A comprehensive foreign exchange risk management
program requires establishing and implementing sound
and prudent foreign exchange risk management policies,
developing and implementing appropriate and effective
exchange rate management and control procedure. The
responsibility of managing foreign exchange risk rests with
the Treasury Division of the bank. Treasury Division always
monitors the market scenario of risk and manages the
foreign exchange operations in such a way that earnings
are not hampered against any adverse movement in
market prices. To address the issue, all foreign exchange
activities have been segregated into Front Offce which
is responsible for currency transactions, Mid Offce
which deals verifcation & limit monitoring & Back Offce
which deals settlement of transactions. These offces
have separate and independent reporting lines to ensure
minimization of risk.
Agrani Bank Limited has formulated policies and
manuals with a view to reducing the foreign exchange
risk. Treasury division of the bank manages and controls
day-to-day trading activities under the supervision of
ALCOM that ensures continuous monitoring of the level of
assumed risks. In ABL, FOREX risk is minimal as all the
transactions are carried out on behalf of the customers,
i.e. foreign exchange trading exposures are principally
derived from customers driven transactions. All Foreign
exchange transactions are revalued at mark-to-market
method according to Bangladesh Banks guidelines. All
Nostro accounts are reconciled on 15 days basis .The
management reviews outstanding entry beyond 15 days
for settlement purpose.
The Bank has an accounting procedure and management
information system to measure and monitor foreign
exchange position, foreign exchange gains or losses and
foreign exchange risks. Besides, these are independently
inspected and audited.
5. Internal Control and Compliance Risk
Banking function entails high risk. Effective internal control
and compliance system, effcient corporate governance,
transparency and accountability are very important for
the banking sector worldwide. Internal control system
identifes the risk in the process, adopts mitigation
47 Annual Report 2012
measures and ensures compliance thereof. Current
or prospective compliance risk to earnings and capital
arises from violation or non-compliance with laws, rules,
regulations, agreements, prescribed practices or ethical
standards, as well as from the incorrect interpretation
of laws and regulations. Proper internal control system
integrates compliance risk management into overall risk
management process.
Internal control and compliance is a management process
designed to achieve:
Effective system of control
Effectiveness and effciency of operations
Reliability of fnancial reporting
Compliance with applicable laws and regulations
Safeguard of assets
Internal control consists of fve interrelated components,
which are:
i) Control Environment
ii) Risk Assessment
iii) Control Activities
iv) Information and Communication
v) Monitoring
To assess the business risk as well as control risk
associated with the branches, Bank has been implementing
Risk Based Internal Audit (RBIA) in the daily activities
of the Bank in light of core risk factors. The Bank has
already brought out its internal control manual to set out a
strong internal control framework within the organization,
which focuses on monitoring the functioning of various
departments/divisions of Head Offce and branches on
regular basis. Internal Control and Compliance Division
(ICC) reviews Departmental Control Function Checklist
(DCFCL), Loan Documentation Checklist (LDCL) and
Quarterly Operations Report (QOR) of the branches
regularly to ensure internal control process of the bank.
Comprehensive audit and inspection is being carried out on
regular basis in ensuring internal control and compliance.
Each year the Audit & Inspection Division sets out an
audit plan (internal) for the year which is approved by the
Board Audit Committee. The Audit & Inspection Division
submits reports to ICC Division after completion of audit
and inspection. The ICC Division places a summary report
on audit fndings to the Audit Committee for information
and necessary suggestions.
Utmost importance is given to the audit report and
suggestions of the auditors. Bank takes corrective
actions regarding the lapses mentioned in the report.
During 2012 the Board Audit Committee conducted 14
meetings in which various audit and inspection reports,
appropriateness of internal control and compliance,
policy guidelines etc. were reviewed and evaluated and
necessary instructions and guidelines were provided. The
committee ensures that the effective measures are taken
by the management if any defciency or lapse is found in the
internal control system. The committee evaluates whether
management is setting the appropriate compliance culture
by communicating the importance of internal control to
ensure that, all employees of the bank have understood
their roles and responsibilities.
6. Information and Communication Technology Risk
We are living in an era of ICT. Banks have become more
technology driven these days. Uses of computer and
internet have become inseparable phenomenon in the
banking industry. There are certain risks involved in the
use of information and communication technology. This
risk may arise from malfunctioning of the system, failure
of network, lack of knowledge about the use of technology,
virus attack, hacking etc.
Agrani Bank Limited has initiated various measures to
address and to minimize Information and Communication
Technology risks. ABL has formulated ICT policy following
the ICT Security Guidelines of Bangladesh Bank which is
approved by the Board of Directors. ABL has an ICT audit
and security management team formed as per the Central
Banks Guidelines. The Bank formulated job description,
job specifcation and roster duty for each individual within
IT & MIS Division for smooth running of business and to
avoid risk. Employees are given adequate training on
aspects of sensitive ICT tasks. The Bank has established
a secured environment for data processing. ABL has
established priority based information systems to protect
data. It has also taken steps to secure data by keeping
backup at an international standard Disaster Recovery
Center (DRC). ABL has introduced Core Banking Software
TEMENOS T24 for online banking operations. Some
other customized software have also been introduced to
bring out the overall banking transactions of the bank in
line with the online banking.
In addition, the Bank also manages the risk, taking into
consideration the reputation risk, liquidity risk, operational
risk, market risk, credit concentration risk, interest rate risk,
settlement risk, environmental and climate risk, residual
risk and equity price risk which are elaborated below:
a) Reputation Risk
Reputation risk arises from negative publicity about which
the Bank is always alert.
b) Liquidity Risk
The Bank is capable of managing the liquidity risk to
ensure that all foreseeable funding commitments and
deposits withdrawals can be met when due.
c) Operational Risk
The Bank ensures quick and proper management
of operational risk which may arise from fraud, error,
omission, unauthorized activities, ineffciency, system
failure from external events.
48
d) Market Risk
The market risk which may derive from loss of earnings
due to change in the interest rate, foreign exchange rate
etc.
e) Credit Concentration Risk
Credit concentration risk may arise from credit exposures
in the same economic or geographic sector and/or credit
concentration in dependent industries which the Bank
addresses through proper evaluation. Credit Concentration
of Agrani Bank Limited is used in a broader sense and
includes the following:
i) Concentration by economic purpose (Sector),
ii) Concentration by size of Loan Accounts/ in the
name of a single borrower,
iii) Concentration by a legally connected group of
borrowers,
iv) Concentration by region (Geographical),
v) Concentration by portfolio type (Granularity)
f) Interest Rate Risk
Interest rate risk is the current or potential risk to earnings
and capital arising from adverse movements in interest.
This is in respect of the banking book only from pillar 2
(SRP) contexts. Signifcantly reduced earnings can pose
a threat to capital adequacy. After volatility of earnings the
Bank analyses to overcome interest rate risk.
g) Settlement Risk
Settlement risk arises when an executed transaction is
not settled as the standard settlement system. Settlement
risk addresses to the credit risk and liquidity risk elements.
Treasury transactions, trading book items (deals) and
capital market dealings are a mix of credit and liquidity risk.
The bank poses to the risk when it fulflls its contractual
obligations (payment or delivery), but the counterparty fails
or defaults to do the same.
h) Environmental and Climate Change Risk
Environmental and climate change risk refers to the
uncertainty or probability of losses that originates from any
adverse environmental or climate change events (natural
or man made) and/or the non-compliance of the prevailing
national environmental regulations. It can hamper the
business stability of the borrowers in respect to both-
proftability and reputation. To avoid this risk bank takes
cautionary initiatives before the disbursement of loan.
i) Residual Risk
It refers to the risk arising from the collateral taken and
other forms of shielding against credit risks. These risks
comprise legal, documentation, value of collateral,
insurance risk etc. For example, inability to seize collateral
at the opportune moment, guarantor refusing his obligation
or ineffectiveness of untested documentation might turn to
potential non-performance of these assets. ABL is aware
of residual risk and takes legal or practical steps for its
management.
j) Equity Price Risk
Equity risk is defned as losses due to change in market
price of the equity held. To measure and identify the risk,
mark-to-market valuation of the share investment portfolios
is done by the Bank.
49 Annual Report 2012
50
Disclosure under Basel-II
Qualitative and Quantitative Disclosures
Under Pillar-3 of Risk Based Capital Adequacy
as of 31st December 2012
The Basel Committee on Banking Supervision published a framework for international convergence of capital measurement
and capital standards commonly termed as Basel II replacing the previous rules under 1988 Basel I accord.
In Bangladesh, Risk Based Capital Adequacy for Banks (Revised regulatory capital framework in line with Basel II) came
into effect fully from January 2010 following the BRPD circular # 20 Dated- December 29, 2009 after parallel run with
Basel I during the year 2009.
Agrani Bank believes that Basel II is not merely a reporting system but a principle on which overall banking business
runs. With a view to facilitating smooth implementation, the Bank has formed a high powered committee. This committee
forecast the future follow up of the overall implementation status and way out the probable solution to cope with the
international best practices and to make the banks capital more risk sensitive as well as more shock resilient. The Bank
has also formed a Supervisory Review Process (SRP) team to participate the dialogue with the Supervisory Review
Evaluation Process (SREP) team of BB in respect to assessment of the adequate capital requirement.
The Basel II principle stands on the following three pillars:
Pillar-1 : Minimum Capital Requirement (MCR)
Minimum Capital Requirement (MCR) that needs to be maintained by banks to cover credit, market and operational risk
as a regulatory requirement.
Pillar-2 : Supervisory Review Process (SRP)
SRP basically deals with other risks faced by a bank not covered in pillar-1. The key principle of SRP is that banks have
a process for assessing overall capital adequacy in relation to their risk profle and a strategy for maintaining their capital
at an adequate level. The assessment of adequate capital would be the outcome of the dialogue to be held between the
banks SRP and Bangladesh Banks SREP team.
Pillar-3: Market Discipline
To make public disclosure of information on the banks risk profles, capital adequacy and risk management processes.
The objective of introducing Market Discipline in the revised capital framework is to establish more transparent and more
disciplined fnancial market so that stakeholders can assess the position of a bank in regard to holding assets and to
identify the risks relating to the assets and capital adequacy to meet probable loss of assets.
3 pillars of Basel II
Pillar 1 Pillar 2 Pillar 3
Minimum Capital
Requirement
Supervisory Review
Process
Market
Discipline
Risk Weighted
Assets Capital
Supplementary
Capital
Core
Capital
Standardized
Approach
Credit Risk
IRB
Approach
Advanced IRB
Approach
Market Risk
Standardized
Approach
Models
Approach
Operational
Risk
Basic Indicator
Approach
Standardized
Approach
Advanced
Measurement
Approach
Additional
Supplementary
Capital
51 Annual Report 2012
The guidelines have been devised to make the regulatory requirements more appropriate and also to assist the banks
to follow the instructions more effciently for smooth implementation of the Basel II framework in the banking sector. The
major highlights of the Bangladesh Bank regulations in this regards are:
a) To maintain capital adequacy ratio (CAR) at a minimum of 10 percent of Risk Weighted Assets.
b) To adopt the Standardized Approach for credit risk in relation to implementation of Basel II.
c) To adopt Standardized (Rule Based) Approach for market risk.
d) To adopt Basic Indicator Approach for operational risk.
e) To submit the returns to Bangladesh Bank on a quarterly basis.
Disclosure Framework
The general qualitative disclosure requirements are as follows:
For each Separate risk area (e.g. credit, operational, market, banking book interest rate risk, equity) banks must describe
their risk management objectives and policies, including:
Strategies and processes
the structure and organization of the relevant risk management function.
the scope and nature of risk reporting and/or measurement systems.
Policies, strategies and processes for monitoring the continuing effectiveness of hedging/mitigation risk.
The following components set out as the disclosure requirements:
i) Scope of application
ii) Capital structure
iii) Capital adequacy
iv) Credit Risk
v) Equities: disclosures for banking book positions
vi) Interest rate risk in the banking book (IRRBB)
vii) Market risk
viii) Operational risk
1. Scope of application
Qualitative Disclosures
a) The name of the top corporate entity in the group to which this guideline applies is Agrani Bank Limited.
b) An outline of differences on the basis of consolidation for accounting and regulatory purposes, with a brief
description of the entities within the group:
1) That is fully consolidated.
ABLs Minimum Capital Requirement (MCR) has been arrived at both on Solo & Consolidated Basis.
2) The following items are given a deduction treatment.
a) Remaining value of Valuation Adjustment
b) Beneft of Deferred Tax Assets
The investments in the following 6 subsidiary companies have been deducted in full i.e, at 50% of core
capital and 50% of supplementary capital of ABL on Solo basis.
i) Agrani Equity & Investment Limited
Agrani Bank Limited is the parent company of Agrani Equity & Investment Ltd. which is established to
perform merchant banking activities in Bangladesh.
Name : Agrani Equity & Investment Ltd.
Date of incorporation : 16.03.2010
Date of Commencement : 16.03.2010
Authorized Capital : Tk. 500,00,00,000
Paid up Capital : Tk. 200,00,00,000
Ownership Interest in Capital : Tk. 200,00,00,000 (100%)
52
ii) Agrani SME Financing Company Limited
Agrani Bank Limited is the parent company of Agrani SME Financing Company Limited which is
established to perform retail credit activities in Bangladesh.
Name : Agrani SME Financing Company Limited
Date of incorporation : 27.10.2010
Date of Commencement : 27.10.2010
Authorized Capital : Tk. 500,00,00,000
Paid up Capital : Tk. 50,00,00,000
Ownership Interest in Capital : Tk. 50,00,00,000 (100%)
iii) Agrani Exchange House Private Limited, Singapore
Agrani Bank Limited is the parent company of Agrani Exchange House Private Limited, Singapore
which is established to perform activities as remittance house.
Name : Agrani Exchange House Private Limited, Singapore
Date of incorporation : 04.01.2002
Date of Commencement : 02.08.2002
Authorized Capital : SGD 2,00,000
Paid up Capital : SGD 2,00,000
Ownership Interest in Capital : SGD 2,00,000 (100%)
iv) Agrani Remittance House Sdn. Bhd., Malaysia
Agrani Bank Limited is the parent company of Agrani Remittance House Sdn. Bhd., Malaysia which
is established to perform activities as remittance house.
Name : Agrani Remittance House Sdn. Bhd., Malaysia
Date of incorporation : 18.08.2005
Date of Commencement : 13.01.2006
Authorized Capital : MYR 10,00,000
Paid up Capital : MYR 10,00,000
Ownership Interest in Capital : MYR 10,00,000 (100%)
v) Agrani Exchange Co. (Australia) Pty. Limited
Agrani Bank Limited is the parent company of Agrani Exchange Co. (Australia) Pty. Limited which is
established to perform activities as remittance house.
Name : Agrani Exchange Co. (Australia) Pty. Limited
Date of incorporation : 19.12.2011
Date of Commencement : -
Authorized Capital : AUD 5,80,000
Paid up Capital : AUD 1,61,900
Ownership Interest in Capital : AUD 1,61,900 (100% owned by Agrani Bank Limited)
vi) Agrani Remittance House Canada, Inc.
Agrani Bank Limited is the parent company of Agrani Remittance House Canada, Inc. which is
established to perform activities as remittance house.
Name : Agrani Remittance House Canada, Inc.
Date of incorporation : 11.07.2012
Date of Commencement : -
Authorized Capital : CAD 4,50,000
Paid up Capital : CAD 1,00,000
Ownership Interest in Capital : CAD 1,00,000 (100% owned by Agrani Bank Limited)
3) That is neither Solo nor deducted (e.g. where the investment is risk- weighted).
The accounts of the ABLs above mentioned subsidiary companies have been consolidated. However,
the investments in these subsidiaries have not been deducted from the capital of ABL.
53 Annual Report 2012
c) Any restrictions or other major impediments on transfer of funds or regulatory capital within the
group.
Yes, there are.
d) Quantitative Disclosures
Since the Capital requirement of ABL has been arrived at both on Solo & Consolidated basis as such
capital requirement of following subsidiaries have not been assessed:
i) Agrani Equity & Investment Ltd.
ii) Agrani SME Financing Company Ltd.
iii) Agrani Exchange House Private Limited, Singapore.
iv) Agrani Remittance House Sdn, Bhd, Malaysia.
v) Agrani Exchange Co. (Australia) Pvt. Limited
vi) Agrani Remittance House Canada, Inc.
2. Capital structure
Qualitative Disclosures
a) As per the RBCA Guidelines each bank has to maintain CAR on Consolidated basis or solo basis as per instructions
given by Bangladesh Bank from time to time. The minimum CAR for the year ended December 31, 2012 was 10%. The
regulatory capital under Basel-II is composed of (i) Core Capital (Tier-1), (ii) Supplementary Capital (Tier-2) and (iii)
Additional Supplementary Capital (Tier-3) {only for market risk}.
Tier-1 Capital comprises of paid up Capital, Statutory Reserve, General Reserve and Retained Earnings.
Tier-2 Capital consists of General Provision, Asset Revaluation Reserve and Revaluation Reserve for Securities.
Quantitative Disclosures
(Taka in crore)
(b)The amount of Tier-1 capital, with separate disclosure is Solo Consolidated
Paid up capital 991.29 991.29
Non-repayable share premium account 0.00 0.00
Statutory reserve 413.98 414.55
General reserve 0.50 5.97
Retained earnings (1,454.35) (1,497.18)
Minority interest in subsidiaries 0.00 0.00
Non-cumulative irredeemable preference shares 0.00 0.00
Dividend equalization account 0.00 0.00
Other (if any item approved by BB) 0.00 0.00
Total amount of Tier-I Capital (48.58) (85.37)
c) The total amount of Tier-2 and Tier-3 capital. 0.00 0.00
d) Deductions from Tier-1 & Tier-2 capital. 1,270.96 1140.19
e) Total eligible capital. (1,319.54) (1,225.56)
3. Capital Adequacy
Qualitative Disclosures
a) Assessment of Capital adequacy is carried out in conjunction with the Capital Adequacy reporting to the Bangladesh
Bank and the approaches were pursued to calculate Minimum Capital Requirement are (1) Credit Risk- Standardized
Approach (SA), (2) Market Risk-Standardized (Rule Based) Approach (SA) and (3) Operational Risk -Basic indicator
Approach(BIA)
54
Quantitative Disclosures
(Taka in crore)
Solo Consolidated
b) Capital requirement for Credit Risk 1,632.46 1621.24
c) Capital requirement for Market Risk 229.88 281.75
d) Capital requirement for Operational Risk 283.19 285.66
e) Total and Tier- 1 capital ratio 1.00 : (.62) 1.00: (.56)
For the consolidated group and Yes
For stand alone Yes
4. Credit Risk
Qualitative Disclosures
a) Credit risk is the risk of fnancial loss resulting from failure of a client or counter party to meet its contractual obligations
to the Bank. Bank is exposed to credit risk from its dealing with or lending to corporate, individuals, and other banks
or fnancial institutions. As regards capital charge for Credit Risk, all assets in Banking Book have been risk-weighted
strictly based on pre-specifed weight as fxed by Bangladesh Bank as per RBCA guidelines. However, the Bank has
conducted proper mapping with the grading of Bangladesh Bank for those exposures or claims graded by External Credit
Assessment Institution (ECAI).
Defnitions of past due and impaired (for accounting purposes).
Any claim or exposure that has been overdue for 90 days or more is called past and impaired loan in accordance with
the defnition given by Bangladesh Bank as per section-5(CC) of the Bank Companies Act, 1991.
Description of approaches followed for specifc and general allowances and statistical methods.
The Bank has been following Standardized Approach for assessing the requirement of Capital charge against Credit
Risk. The methodology used for this approach is to rate the exposures by the External credit Assessment Institution
(ECAI).
Discussion on the banks credit risk management policy:
Considering the key elements of credit risk, the bank has established Credit Risk Management framework in line
with the Bank Credit Risk Management (CRM) policy guideline and the Credit Risk Grading (CRG) system. This
framework defnes CRM structure, role, responsibilities and the processes to identify, quantify, and manage risk
under the given policy. The CRM policy is reviewed from time to time for adoption of new techniques, policies for
measurement and management of risks in line with the socioeconomic scenario and investment environment of the
country.
ABLs credit policy is based on the customers need for their business and security, earning capacity of borrower, the
repayment capability of the business, and the value of collateral.
The Credit policy of the bank is focused on the economic goal of the country and policies adopted by the Government. It
strives towards the materialization of the Government policies leading to overall economic development of the country.
The policy stresses the need to give special attention to problem loans and to initiate appropriate action to protect the
Banks interest on a timely basis.
ABL strictly adheres to the regulatory policies; a rule etc. as regard to credit management and is in compliance with
regulatory requirements as stipulated by Bangladesh Bank from time to time.
The objective of credit risk management is to minimize the different dimension of risks associated with credit exposures
and to maintain credit risk profle of the bank within a tolerable range.
Quantitative Disclosures
b) Total (gross) Credit Risk Exposure broken down by major types of credit exposure is furnished below:
(Taka in crore)
Solo Consolidated
Funded 30,954.37 30,800.62
Non Funded 1,741.56 1,741.56
Total 32,695.93 32,542.18
55 Annual Report 2012
c) Geographical distribution of exposures, broken down to signifcant areas by major types of credit exposure.
Balance sheet exposure
(Taka in crore)
Region Urban Rural Total
Dhaka Region 12,142.28 247.80 12,390.08
Chittagong Region 3,589.80 36.26 3,626.06
Khulna Region 714.92 213.55 928.47
Rajshahi Region 679.14 277.40 956.54
Barisal Region 472.72 356.61 829.33
Sylhet Region 164.87 54.96 219.83
Rangpur Region 451.63 243.18 694.81
Mymensing Region 377.39 212.28 589.67
Comilla Region 428.61 183.69 612.30
Faridpur Region 335.37 83.84 419.21
Sub Total 19,356.73 1,909.57 21,266.30
Off-Balance sheet exposure
Region (Taka in crore)
Dhaka Region 10,466.51
Chittagong Region 387.98
Khulna Region 95.33
Rajshahi Region 110.22
Barisal Region 95.49
Sylhet Region 7.05
Rangpur Region 42.15
Mymensing Region 7.40
Comilla Region 18.76
Faridpur Region 10.98
Total 11,241.87
d) Industry or counterparty type distribution of exposures, broken down by major types of credit exposure.
Funded (Taka in crore)
Agriculture & Fishery 864.64
Jute & Jute Goods 630.27
Transport, Storage & Communication 150.03
Ship Breaking 219.71
Textile & Readymade Garments 2,675.42
Food & Allied Industry 863.27
Construction & Engineering 185.05
Pharmaceuticals & Chemicals 298.07
Leather Sector 364.10
Power Sector 1,180.42
Professional & Services 182.27
Housing Services 572.12
Wholesale/ Retail Trading 2,152.78
Personal (Staff & other personal Loan) 1,569.16
Others 9,358.99
Total 21,266.30
56
Non Funded: Yet to be made
e) Residual Contractual maturity breakdown of the whole portfolio by major types of credit exposure.
(Taka in crore)
Repayable on Demand 2,087.67
Not more than 3 months 828.24
More than 3 month but not more than 1 year 4,692.45
More than 1 year but not more than 5 years 8,277.27
More than 5 years 5,380.67
Total 21,266.30
Non Funded: As yet not Available.
f) By major industry or counterparty type:
Amount of impaired loans and if available, past due loans, provided separately: TK. 6,215.01 crore
Specifc Provisions: TK. 3,212.03 crore
General provisions: TK. 233.19 crore
Charges for specifc allowances and charge-offs during the period: Not Applicable
g) Gross Non Performing Assets (NPAs) : TK. 5380.13 crore.
Non Performing Assets (NPAs) to Outstanding Loans & advances: 0.25 : 1.00
Movement of Non Performing Assets (NPAs):
(Taka in crore)
Opening balance 2,148.85
Additions 4,074.46
Reductions (8,43.18)
Closing balance 5,380.13
Movement of specifc provisions for NPAs:
(Taka In crore)
Opening balance 942.14
Provisions made during the period 2,527.61
Recoveries of amount previously Written-off 1.02
Provision add back during the year -
Less: Written-off (258.74)
Closing balance 3,212.03
5. Equities: Disclosures for Banking Book Positions
Qualitative Disclosures
a) The general qualitative disclosure requirement with respect to equity risk, including:
Differentiation between holdings on which capital gains are expected and those taken under other objectives
including for relationship and strategic reasons; ABL has considerable investment in equity shares of various
companies and mutual funds and has active participation in the secondary market. Board, Executive and
Investment committee for the management of investment portfolio and its associated risk to which bank may
be exposed. In the investment process ABL strictly follows the internal policies and procedures put into place
in this respect. ABL also holds unquoted equities intent of which is not trading and the same are shown as
banking book asset in the balance sheet. As these securities are not quoted or traded in the bourses they
are shown in the balance sheet at cost price and no revaluation reserve has been created against these
equities.
57 Annual Report 2012
The equity markets are traditionally volatile with a high risk, high- returns profle. In an uncertain market
place like the present, investors cannot afford to place all hope in only one product. Therefore, it is very
important to protect the total investment value by means of diversifcation.
Equity holdings in the banking book are recorded in the books of accounts at cost price. Adequate provisions
are made against equity holdings in case any decrease of value of equity holdings.
Quantitative Disclosures
b) Value of investments disclosed in the balance sheet, as well as the fair value of those investments; for quoted
securities, a comparison to publicly quoted share values where the share price is materially different from fair
value.
Provisions are kept against publicly quoted shares where the share price is materially different from fair value which is
negative. However, no unrealized gain from publicly quoted share is accounted for. Only realized gain is accounted for
in case of publicly quoted shares.
c) The cumulative realized gains (losses) arising from sales and liquidations in the reporting period.
d) Total unrealized gains (losses)
Total latent revaluation gains (losses)
Any amounts of the above included in Tier-2 capital.
e) Capital requirements broken down by appropriate equity groupings, consistent with the banks Methodology,
as well as the aggregate amounts and the type of equity investments subject to any Supervisory provisions
regarding regulatory capital requirements.
TK. 129.03 crore (Investment in unquoted share Tk. 1032.26 Crore 1.25 Risk weight 10% Capital requirement) has
been assessed against unquoted equity holdings and shown in MCR.
6. Interest rate risk in the banking book (IRRBB)
a) Qualitative Disclosures
The general qualitative disclosure requirement including the nature of IRRBB and key assumptions, including loan pre-
payments and behavior of non-maturity deposits, and frequency of IRRBB measurement.
Interest rate risk is the potential that the value of the on- balance sheet and the off-balance sheet positions of the bank
would be negatively affected with the change in the interest rates. Changes in interest rates also affect the underlying
value of the bank assets, liabilities and off-balance sheet instruments because the economic value of future cash fows
changes when interest rates changes.
The Bank uses a simple Sensitivity Analysis as well as Duration Gap Analysis to determine its vulnerability against the
adverse movement of market variables.
ABL discusses the interest rate issue in its ALCOM meeting on monthly basis. In addition, ABL assesses the interest
rate risk using simple duration analysis as per the formula given by Bangladesh Bank in its guidelines on Stress Testing.
For change in interest rates, currently, ABL is more risk sensible for its Assets comparable to its Liabilities.
The Bank is on a continuous process of re-structuring its assets and liabilities to make a balance between them and to
bring the situation back in its favor for any change in interest rate.
b) Quantitative Disclosures
The increase (decline) in earnings or economic value (or relevant measure used by management) for upward and
downward rate shocks according to managements method for measuring IRRBB, broken down by currency (as
relevant).
The bank has been using Stress Testing based on guidelines published by Bangladesh Bank to determine the following:
1) Impact on earnings and
2) Impact on Capital requirements.
58
7. Market Risk
Qualitative Disclosures
Views of the Board of Directors (BOD) on trading/investment activities.
Market risk arises from the movement of market prices. The BOD of the Bank views the Market Risk as the risk to the
banks earnings and capital due to changes in the market level of interest rates of securities, foreign exchange and
equities as well as the volatilities of those changes. Market Risk Management provides a comprehensive and dynamic
framework for measuring, monitoring and managing interest rate, foreign exchange as well as equity, commodity price
risk of a bank that needs to be closely integrated with the banks business strategy.
Methods used to measure Market risk
The Bank uses the standardized (Rule Based) approach to calculate market risk for trading book exposures
Market Risk Management system
Decision taken in the monthly meeting of Core Risk Management and ALCOM is an important tool for managing market
risk. ALCOM is in place in the bank to administer the system.
Policies and processes for mitigating market risk
The only mitigation tool that the Bank uses is the Marking to Market for mitigating market risk. Besides, a set risk/loss
tolerance level is in place to mitigate market risk.
Quantitative Disclosures
The capital requirements for
(Taka In crore)
Interest rate risk 49.23
Equity risk 190.96
Foreign exchange risk 41.57
Commodity risk 0.00
8. Operational risk
Qualitative Disclosures
Views of BOD on system to reduce Operational Risk:
The BOD of the bank views, Operational Risk as the risk of loss arising from inadequate or failed internal processes,
people, systems, external causes, fraud, unauthorized activities, error, omission, ineffciency, systems failure or external
events.
Performance gap of executives and staffs:
Performance goals are most often attained by executives and staff with a few exception.
Potential external events:
ABL, as a state owned commercial bank, is exposed to directed loans as the major external event.
Policies and processes for mitigating operational risk:
The ABL manages this risk through a chain based processes which are documented, authorized and independent.
Transactions, events etc. that are being taken place at the operational level monitored and reported.
If deviations are found, corrective actions are taken to bring the deviation back into the track.
An MIS is in place and is used to identify record and assess any kind of operational risk and to generate appropriate
regular management reporting.
Since ineffciency is one of the root causes of operational risk, the Bank trains its operational staff on regular basis to
make them more effective and effcient for mitigating operational risks.
Approach for calculating capital charge for operational risk:
The Bank uses the Basic Indicator Approach to calculate the capital requirement of its operational risk.
Quantitative Disclosures
The capital requirements for operational risk: TK. 285.66 crore.
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 a
stakeholder of the society, Agrani Bank Limited is
keen to augment CSR activities gradually in the
days to come. 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.
Agrani Bank Limited passionately believes that a
better society is fundamental precondition for a
better business environment. As such, CSR is
viewed as one of the core corporate values of the
bank. In its millennium summit held at the UN
Head Quarters, New York, USA in 2000; the United
Nations set eight goals popularly known as
Millennium Development Goals, such as: i)
eradicate extreme poverty and hunger, ii) achieve
universal primary education, iii) promote gender
equality & empower women, iv) reduce child
mortality, v) improve maternal health, vi) combat
HIV/AIDS, malaria and other diseases, vii) ensure
environmental sustainability and viii) develop a
global partnership for development. Bangladesh is
one of the signatories to achieve those goals by
2015. As such, ABL has aligned her CSR activities
partially with those goals.
Agrani Bank Limited is committed to contribute
towards social development through its CSR
program. ABLs ethical standard is not only meant
for maximising profit, rather its vision is to build up
a society where human dignity and rights receive
the highest consideration and evaluation. Banks
motto is also to improve the society and its culture
by means of CSR.
Education
Akin to the previous years, ABL has donated a
sizeable amount to various educational
institutions. In the year, the bank donated Tk.
281.18 lac to 68 beneficiaries. These helps were
extended for renovation/construction of
building/class rooms of different schools, colleges,
universities, libraries etc; giving stipend to the poor
meritorious students; sponsoring various
seminars, conferences, convocations, alumnies,
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
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. As such, ABL is committed to
assist those poor people, who have no way to
secure basic treatment. During the year 2012, the
bank has given financial assistance from its CSR
fund a sum of Tk. 85.32 lac to 127 beneficiaries to
ease their miseries.
Disaster Relief
ABLs 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 2012, the bank has spent Tk.
14.19 lac for the donation of 12,191 blankets to the
cold stricken poor people of the country in the
districts of Rangpur, Dinajpur, Thakurgaon,
Gaibandha, Kurigram, Panchagarh, Mymenshingh
and Pabna.
Concern for the Environment
In the year 2012, the bank contributed 2.00 lac to
Make Rajshahi Green Project and Tk. 5.00 lac to
BAPA (Bangladesh Paribesh Andolon) for
International Conference on Environment in South
Asia. Today our planet is exposed to a severe
environmental catastrophe than ever before. ABLs
corporate social responsibility contributes
generously to the development of Green Banking.
Protection and thus nourishing the environment is
part of ABLs 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 2012, the Bank has donated Tk. 21.15
lac to 8 beneficiaries of different football and hokey
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 Mohamadan, Abahony, 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 number of cricketers and
footballers are playing in the national and
international levels who were once member of ABL
sports team.
Arts and Culture
Agrani Bank Limited is always committed to the
upliftment of Bengali heritage, art, culture and
literature. The bank donated Tk. 30 lac for ongoing
construction of liberation war museum. Besides,
the bank also donated Tk.18.45 lac to other related
projects/programs.
Customers and Well-wishers
ABL feels proud to provide services to the valued
costomers without any hidden cost. The bank
serves to customers as a business partner. The
bank sincerely strives to improve business
relationship with the customers for common
benefit. By optimising financial performance at the
least cost the bank protects the interest of
customers. The bank is maintaining a good
relationship with the business friends for mutual
growth and development. The relationship with our
business partners is based on reciprocal trust and
respect. We transact with them in a fair and
transparent way.
Poverty Alleviation
It is globally accepted that the Non-Government
Organizations (NGOs) have been performing a
laudable role in poverty alleviation across the
globe, especially in Bangladesh. With a view to
widening the access to finance to the poor and
ultra poor community, ABL has been financing
NGOs since 1997 at privileged rates of interest.
ABL financed NGOs are of various categories and
capacities. Such activities also contributed to
generation of income and employment as well.
Promotion of Crop Production
To attain food security of the country ABL has been
providing credit facilities to the farmers at a lower
rate of interest (currently at 8 percent) since 1977.
A huge amount of foreign currency is spent in
every year to import pulse, oil-seeds, spices,
maize etc. In order to save foreign currency, the
Government of Bangladesh encourages our
farmers to boost up the production of above crops
by introducing rebate rate of interest and ABL is
one of the major participants of this initiative. In this
sector, ABL disbursed an amount of Tk.1,623.20
lac in the year 2012.
Promotion of Entrepreneurship
The bank envisaged fostering entrepreneurship
amongst the potential, new and small
entrepreneurs and generating employment
through financing Small and Medium Enterprises.
keeping the aim in mind, ABL does not only run
after the so called blue chips towards profit
maximize of the bank. Rather, it always remains
stick to the triple bottom line: People, Planet &
Profit and focused to the promotion of SMEs. In
this way, a lot of entrepreneurs have grown with us
through which employment opportunities are
created for a huge number of people.
Women Empowerment
As half of our population is woman, a sustainable
national progress cant be attained, if women are
left aside. Therefore, they should progressively be
brought to the mainstream of our development
activities. Considering this reality the bank through
its Nari Agrani program has been mobilizing credit
facilities in industry, service and business sector to
the potential women entrepreneurs at a reduced
rate of 10 percent interest. So far the bank has
financed several woman entrepreneurs and it will
gain due momentum in the days to come.
Awareness Building
Generation of awareness is a very useful tool to
combat social evils, like drug addiction, smoking,
pollution, terrorism, population etc. For this
purpose, the bank has continued support to
different social organizations who displayed
banner, festoon sticker, display board and use
such other communication channels for
discouraging drug, smoking, pollution, population
growth etc. The Bank continued such awareness
building activities for the year 2012.
Other CSR Activities
Agrani Bank Limited is always attentive to attain
more and more good corporate attributes. So,
apart from the exposures mentioned above, ABLs
CSR disclosure includes multi-faceted social
activities. The bank also spent Tk. 75.69 lac to 64
beneficiaries at various private, semi government
and government bodies and socio cultural
organizations.
Category-wise CSR activities of the Bank in 2012
are as follows:
Corporate Social Responsibility Corporate Social Responsibility
59
60
Finance Minister A.M.A. Muhit, MP, recieving blankets from ABL for distribution to the cold-stricken people
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 a
stakeholder of the society, Agrani Bank Limited is
keen to augment CSR activities gradually in the
days to come. 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.
Agrani Bank Limited passionately believes that a
better society is fundamental precondition for a
better business environment. As such, CSR is
viewed as one of the core corporate values of the
bank. In its millennium summit held at the UN
Head Quarters, New York, USA in 2000; the United
Nations set eight goals popularly known as
Millennium Development Goals, such as: i)
eradicate extreme poverty and hunger, ii) achieve
universal primary education, iii) promote gender
equality & empower women, iv) reduce child
mortality, v) improve maternal health, vi) combat
HIV/AIDS, malaria and other diseases, vii) ensure
environmental sustainability and viii) develop a
global partnership for development. Bangladesh is
one of the signatories to achieve those goals by
2015. As such, ABL has aligned her CSR activities
partially with those goals.
Agrani Bank Limited is committed to contribute
towards social development through its CSR
program. ABLs ethical standard is not only meant
for maximising profit, rather its vision is to build up
a society where human dignity and rights receive
the highest consideration and evaluation. Banks
motto is also to improve the society and its culture
by means of CSR.
Education
Akin to the previous years, ABL has donated a
sizeable amount to various educational
institutions. In the year, the bank donated Tk.
281.18 lac to 68 beneficiaries. These helps were
extended for renovation/construction of
building/class rooms of different schools, colleges,
universities, libraries etc; giving stipend to the poor
meritorious students; sponsoring various
seminars, conferences, convocations, alumnies,
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
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. As such, ABL is committed to
assist those poor people, who have no way to
secure basic treatment. During the year 2012, the
bank has given financial assistance from its CSR
fund a sum of Tk. 85.32 lac to 127 beneficiaries to
ease their miseries.
Disaster Relief
ABLs 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 2012, the bank has spent Tk.
14.19 lac for the donation of 12,191 blankets to the
cold stricken poor people of the country in the
districts of Rangpur, Dinajpur, Thakurgaon,
Gaibandha, Kurigram, Panchagarh, Mymenshingh
and Pabna.
Concern for the Environment
In the year 2012, the bank contributed 2.00 lac to
Make Rajshahi Green Project and Tk. 5.00 lac to
BAPA (Bangladesh Paribesh Andolon) for
International Conference on Environment in South
Asia. Today our planet is exposed to a severe
environmental catastrophe than ever before. ABLs
corporate social responsibility contributes
generously to the development of Green Banking.
Protection and thus nourishing the environment is
part of ABLs 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 2012, the Bank has donated Tk. 21.15
lac to 8 beneficiaries of different football and hokey
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 Mohamadan, Abahony, 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 number of cricketers and
footballers are playing in the national and
international levels who were once member of ABL
sports team.
Arts and Culture
Agrani Bank Limited is always committed to the
upliftment of Bengali heritage, art, culture and
literature. The bank donated Tk. 30 lac for ongoing
construction of liberation war museum. Besides,
the bank also donated Tk.18.45 lac to other related
projects/programs.
Customers and Well-wishers
ABL feels proud to provide services to the valued
costomers without any hidden cost. The bank
serves to customers as a business partner. The
bank sincerely strives to improve business
relationship with the customers for common
benefit. By optimising financial performance at the
least cost the bank protects the interest of
customers. The bank is maintaining a good
relationship with the business friends for mutual
growth and development. The relationship with our
business partners is based on reciprocal trust and
respect. We transact with them in a fair and
transparent way.
Poverty Alleviation
It is globally accepted that the Non-Government
Organizations (NGOs) have been performing a
laudable role in poverty alleviation across the
globe, especially in Bangladesh. With a view to
widening the access to finance to the poor and
ultra poor community, ABL has been financing
NGOs since 1997 at privileged rates of interest.
ABL financed NGOs are of various categories and
capacities. Such activities also contributed to
generation of income and employment as well.
Promotion of Crop Production
To attain food security of the country ABL has been
providing credit facilities to the farmers at a lower
rate of interest (currently at 8 percent) since 1977.
A huge amount of foreign currency is spent in
every year to import pulse, oil-seeds, spices,
maize etc. In order to save foreign currency, the
Government of Bangladesh encourages our
farmers to boost up the production of above crops
by introducing rebate rate of interest and ABL is
one of the major participants of this initiative. In this
sector, ABL disbursed an amount of Tk.1,623.20
lac in the year 2012.
Promotion of Entrepreneurship
The bank envisaged fostering entrepreneurship
amongst the potential, new and small
entrepreneurs and generating employment
through financing Small and Medium Enterprises.
keeping the aim in mind, ABL does not only run
after the so called blue chips towards profit
maximize of the bank. Rather, it always remains
stick to the triple bottom line: People, Planet &
Profit and focused to the promotion of SMEs. In
this way, a lot of entrepreneurs have grown with us
through which employment opportunities are
created for a huge number of people.
Women Empowerment
As half of our population is woman, a sustainable
national progress cant be attained, if women are
left aside. Therefore, they should progressively be
brought to the mainstream of our development
activities. Considering this reality the bank through
its Nari Agrani program has been mobilizing credit
facilities in industry, service and business sector to
the potential women entrepreneurs at a reduced
rate of 10 percent interest. So far the bank has
financed several woman entrepreneurs and it will
gain due momentum in the days to come.
Awareness Building
Generation of awareness is a very useful tool to
combat social evils, like drug addiction, smoking,
pollution, terrorism, population etc. For this
purpose, the bank has continued support to
different social organizations who displayed
banner, festoon sticker, display board and use
such other communication channels for
discouraging drug, smoking, pollution, population
growth etc. The Bank continued such awareness
building activities for the year 2012.
Other CSR Activities
Agrani Bank Limited is always attentive to attain
more and more good corporate attributes. So,
apart from the exposures mentioned above, ABLs
CSR disclosure includes multi-faceted social
activities. The bank also spent Tk. 75.69 lac to 64
beneficiaries at various private, semi government
and government bodies and socio cultural
organizations.
Category-wise CSR activities of the Bank in 2012
are as follows:
Annual Report 2012 61
ABL Chairman Dr. Khondoker Bazlul Haque handing over a Bus to the Vice Chancellor of BUET
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 a
stakeholder of the society, Agrani Bank Limited is
keen to augment CSR activities gradually in the
days to come. 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.
Agrani Bank Limited passionately believes that a
better society is fundamental precondition for a
better business environment. As such, CSR is
viewed as one of the core corporate values of the
bank. In its millennium summit held at the UN
Head Quarters, New York, USA in 2000; the United
Nations set eight goals popularly known as
Millennium Development Goals, such as: i)
eradicate extreme poverty and hunger, ii) achieve
universal primary education, iii) promote gender
equality & empower women, iv) reduce child
mortality, v) improve maternal health, vi) combat
HIV/AIDS, malaria and other diseases, vii) ensure
environmental sustainability and viii) develop a
global partnership for development. Bangladesh is
one of the signatories to achieve those goals by
2015. As such, ABL has aligned her CSR activities
partially with those goals.
Agrani Bank Limited is committed to contribute
towards social development through its CSR
program. ABLs ethical standard is not only meant
for maximising profit, rather its vision is to build up
a society where human dignity and rights receive
the highest consideration and evaluation. Banks
motto is also to improve the society and its culture
by means of CSR.
Education
Akin to the previous years, ABL has donated a
sizeable amount to various educational
institutions. In the year, the bank donated Tk.
281.18 lac to 68 beneficiaries. These helps were
extended for renovation/construction of
building/class rooms of different schools, colleges,
universities, libraries etc; giving stipend to the poor
meritorious students; sponsoring various
seminars, conferences, convocations, alumnies,
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
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. As such, ABL is committed to
assist those poor people, who have no way to
secure basic treatment. During the year 2012, the
bank has given financial assistance from its CSR
fund a sum of Tk. 85.32 lac to 127 beneficiaries to
ease their miseries.
Disaster Relief
ABLs 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 2012, the bank has spent Tk.
14.19 lac for the donation of 12,191 blankets to the
cold stricken poor people of the country in the
districts of Rangpur, Dinajpur, Thakurgaon,
Gaibandha, Kurigram, Panchagarh, Mymenshingh
and Pabna.
Concern for the Environment
In the year 2012, the bank contributed 2.00 lac to
Make Rajshahi Green Project and Tk. 5.00 lac to
BAPA (Bangladesh Paribesh Andolon) for
International Conference on Environment in South
Asia. Today our planet is exposed to a severe
environmental catastrophe than ever before. ABLs
corporate social responsibility contributes
generously to the development of Green Banking.
Protection and thus nourishing the environment is
part of ABLs 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 2012, the Bank has donated Tk. 21.15
lac to 8 beneficiaries of different football and hokey
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 Mohamadan, Abahony, 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 number of cricketers and
footballers are playing in the national and
international levels who were once member of ABL
sports team.
Arts and Culture
Agrani Bank Limited is always committed to the
upliftment of Bengali heritage, art, culture and
literature. The bank donated Tk. 30 lac for ongoing
construction of liberation war museum. Besides,
the bank also donated Tk.18.45 lac to other related
projects/programs.
Customers and Well-wishers
ABL feels proud to provide services to the valued
costomers without any hidden cost. The bank
serves to customers as a business partner. The
bank sincerely strives to improve business
relationship with the customers for common
benefit. By optimising financial performance at the
least cost the bank protects the interest of
customers. The bank is maintaining a good
relationship with the business friends for mutual
growth and development. The relationship with our
business partners is based on reciprocal trust and
respect. We transact with them in a fair and
transparent way.
Poverty Alleviation
It is globally accepted that the Non-Government
Organizations (NGOs) have been performing a
laudable role in poverty alleviation across the
globe, especially in Bangladesh. With a view to
widening the access to finance to the poor and
ultra poor community, ABL has been financing
NGOs since 1997 at privileged rates of interest.
ABL financed NGOs are of various categories and
capacities. Such activities also contributed to
generation of income and employment as well.
Promotion of Crop Production
To attain food security of the country ABL has been
providing credit facilities to the farmers at a lower
rate of interest (currently at 8 percent) since 1977.
A huge amount of foreign currency is spent in
every year to import pulse, oil-seeds, spices,
maize etc. In order to save foreign currency, the
Government of Bangladesh encourages our
farmers to boost up the production of above crops
by introducing rebate rate of interest and ABL is
one of the major participants of this initiative. In this
sector, ABL disbursed an amount of Tk.1,623.20
lac in the year 2012.
Promotion of Entrepreneurship
The bank envisaged fostering entrepreneurship
amongst the potential, new and small
entrepreneurs and generating employment
through financing Small and Medium Enterprises.
keeping the aim in mind, ABL does not only run
after the so called blue chips towards profit
maximize of the bank. Rather, it always remains
stick to the triple bottom line: People, Planet &
Profit and focused to the promotion of SMEs. In
this way, a lot of entrepreneurs have grown with us
through which employment opportunities are
created for a huge number of people.
Women Empowerment
As half of our population is woman, a sustainable
national progress cant be attained, if women are
left aside. Therefore, they should progressively be
brought to the mainstream of our development
activities. Considering this reality the bank through
its Nari Agrani program has been mobilizing credit
facilities in industry, service and business sector to
the potential women entrepreneurs at a reduced
rate of 10 percent interest. So far the bank has
financed several woman entrepreneurs and it will
gain due momentum in the days to come.
Awareness Building
Generation of awareness is a very useful tool to
combat social evils, like drug addiction, smoking,
pollution, terrorism, population etc. For this
purpose, the bank has continued support to
different social organizations who displayed
banner, festoon sticker, display board and use
such other communication channels for
discouraging drug, smoking, pollution, population
growth etc. The Bank continued such awareness
building activities for the year 2012.
Other CSR Activities
Agrani Bank Limited is always attentive to attain
more and more good corporate attributes. So,
apart from the exposures mentioned above, ABLs
CSR disclosure includes multi-faceted social
activities. The bank also spent Tk. 75.69 lac to 64
beneficiaries at various private, semi government
and government bodies and socio cultural
organizations.
Category-wise CSR activities of the Bank in 2012
are as follows:
62
Dr. Khondoker Bazlul Haque, Chairman of ABL, handing over an Ambulence to the Vice Chancellor of BUET
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 a
stakeholder of the society, Agrani Bank Limited is
keen to augment CSR activities gradually in the
days to come. 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.
Agrani Bank Limited passionately believes that a
better society is fundamental precondition for a
better business environment. As such, CSR is
viewed as one of the core corporate values of the
bank. In its millennium summit held at the UN
Head Quarters, New York, USA in 2000; the United
Nations set eight goals popularly known as
Millennium Development Goals, such as: i)
eradicate extreme poverty and hunger, ii) achieve
universal primary education, iii) promote gender
equality & empower women, iv) reduce child
mortality, v) improve maternal health, vi) combat
HIV/AIDS, malaria and other diseases, vii) ensure
environmental sustainability and viii) develop a
global partnership for development. Bangladesh is
one of the signatories to achieve those goals by
2015. As such, ABL has aligned her CSR activities
partially with those goals.
Agrani Bank Limited is committed to contribute
towards social development through its CSR
program. ABLs ethical standard is not only meant
for maximising profit, rather its vision is to build up
a society where human dignity and rights receive
the highest consideration and evaluation. Banks
motto is also to improve the society and its culture
by means of CSR.
Education
Akin to the previous years, ABL has donated a
sizeable amount to various educational
institutions. In the year, the bank donated Tk.
281.18 lac to 68 beneficiaries. These helps were
extended for renovation/construction of
building/class rooms of different schools, colleges,
universities, libraries etc; giving stipend to the poor
meritorious students; sponsoring various
seminars, conferences, convocations, alumnies,
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
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. As such, ABL is committed to
assist those poor people, who have no way to
secure basic treatment. During the year 2012, the
bank has given financial assistance from its CSR
fund a sum of Tk. 85.32 lac to 127 beneficiaries to
ease their miseries.
Disaster Relief
ABLs 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 2012, the bank has spent Tk.
14.19 lac for the donation of 12,191 blankets to the
cold stricken poor people of the country in the
districts of Rangpur, Dinajpur, Thakurgaon,
Gaibandha, Kurigram, Panchagarh, Mymenshingh
and Pabna.
Concern for the Environment
In the year 2012, the bank contributed 2.00 lac to
Make Rajshahi Green Project and Tk. 5.00 lac to
BAPA (Bangladesh Paribesh Andolon) for
International Conference on Environment in South
Asia. Today our planet is exposed to a severe
environmental catastrophe than ever before. ABLs
corporate social responsibility contributes
generously to the development of Green Banking.
Protection and thus nourishing the environment is
part of ABLs 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 2012, the Bank has donated Tk. 21.15
lac to 8 beneficiaries of different football and hokey
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 Mohamadan, Abahony, 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 number of cricketers and
footballers are playing in the national and
international levels who were once member of ABL
sports team.
Arts and Culture
Agrani Bank Limited is always committed to the
upliftment of Bengali heritage, art, culture and
literature. The bank donated Tk. 30 lac for ongoing
construction of liberation war museum. Besides,
the bank also donated Tk.18.45 lac to other related
projects/programs.
Customers and Well-wishers
ABL feels proud to provide services to the valued
costomers without any hidden cost. The bank
serves to customers as a business partner. The
bank sincerely strives to improve business
relationship with the customers for common
benefit. By optimising financial performance at the
least cost the bank protects the interest of
customers. The bank is maintaining a good
relationship with the business friends for mutual
growth and development. The relationship with our
business partners is based on reciprocal trust and
respect. We transact with them in a fair and
transparent way.
Poverty Alleviation
It is globally accepted that the Non-Government
Organizations (NGOs) have been performing a
laudable role in poverty alleviation across the
globe, especially in Bangladesh. With a view to
widening the access to finance to the poor and
ultra poor community, ABL has been financing
NGOs since 1997 at privileged rates of interest.
ABL financed NGOs are of various categories and
capacities. Such activities also contributed to
generation of income and employment as well.
Promotion of Crop Production
To attain food security of the country ABL has been
providing credit facilities to the farmers at a lower
rate of interest (currently at 8 percent) since 1977.
A huge amount of foreign currency is spent in
every year to import pulse, oil-seeds, spices,
maize etc. In order to save foreign currency, the
Government of Bangladesh encourages our
farmers to boost up the production of above crops
by introducing rebate rate of interest and ABL is
one of the major participants of this initiative. In this
sector, ABL disbursed an amount of Tk.1,623.20
lac in the year 2012.
Promotion of Entrepreneurship
The bank envisaged fostering entrepreneurship
amongst the potential, new and small
entrepreneurs and generating employment
through financing Small and Medium Enterprises.
keeping the aim in mind, ABL does not only run
after the so called blue chips towards profit
maximize of the bank. Rather, it always remains
stick to the triple bottom line: People, Planet &
Profit and focused to the promotion of SMEs. In
this way, a lot of entrepreneurs have grown with us
through which employment opportunities are
created for a huge number of people.
Women Empowerment
As half of our population is woman, a sustainable
national progress cant be attained, if women are
left aside. Therefore, they should progressively be
brought to the mainstream of our development
activities. Considering this reality the bank through
its Nari Agrani program has been mobilizing credit
facilities in industry, service and business sector to
the potential women entrepreneurs at a reduced
rate of 10 percent interest. So far the bank has
financed several woman entrepreneurs and it will
gain due momentum in the days to come.
Awareness Building
Generation of awareness is a very useful tool to
combat social evils, like drug addiction, smoking,
pollution, terrorism, population etc. For this
purpose, the bank has continued support to
different social organizations who displayed
banner, festoon sticker, display board and use
such other communication channels for
discouraging drug, smoking, pollution, population
growth etc. The Bank continued such awareness
building activities for the year 2012.
Other CSR Activities
Agrani Bank Limited is always attentive to attain
more and more good corporate attributes. So,
apart from the exposures mentioned above, ABLs
CSR disclosure includes multi-faceted social
activities. The bank also spent Tk. 75.69 lac to 64
beneficiaries at various private, semi government
and government bodies and socio cultural
organizations.
Category-wise CSR activities of the Bank in 2012
are as follows:
Annual Report 2012 63
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 a
stakeholder of the society, Agrani Bank Limited is
keen to augment CSR activities gradually in the
days to come. 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.
Agrani Bank Limited passionately believes that a
better society is fundamental precondition for a
better business environment. As such, CSR is
viewed as one of the core corporate values of the
bank. In its millennium summit held at the UN
Head Quarters, New York, USA in 2000; the United
Nations set eight goals popularly known as
Millennium Development Goals, such as: i)
eradicate extreme poverty and hunger, ii) achieve
universal primary education, iii) promote gender
equality & empower women, iv) reduce child
mortality, v) improve maternal health, vi) combat
HIV/AIDS, malaria and other diseases, vii) ensure
environmental sustainability and viii) develop a
global partnership for development. Bangladesh is
one of the signatories to achieve those goals by
2015. As such, ABL has aligned her CSR activities
partially with those goals.
Agrani Bank Limited is committed to contribute
towards social development through its CSR
program. ABLs ethical standard is not only meant
for maximising profit, rather its vision is to build up
a society where human dignity and rights receive
the highest consideration and evaluation. Banks
motto is also to improve the society and its culture
by means of CSR.
Education
Akin to the previous years, ABL has donated a
sizeable amount to various educational
institutions. In the year, the bank donated Tk.
281.18 lac to 68 beneficiaries. These helps were
extended for renovation/construction of
building/class rooms of different schools, colleges,
universities, libraries etc; giving stipend to the poor
meritorious students; sponsoring various
seminars, conferences, convocations, alumnies,
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
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. As such, ABL is committed to
assist those poor people, who have no way to
secure basic treatment. During the year 2012, the
bank has given financial assistance from its CSR
fund a sum of Tk. 85.32 lac to 127 beneficiaries to
ease their miseries.
Disaster Relief
ABLs 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 2012, the bank has spent Tk.
14.19 lac for the donation of 12,191 blankets to the
cold stricken poor people of the country in the
districts of Rangpur, Dinajpur, Thakurgaon,
Gaibandha, Kurigram, Panchagarh, Mymenshingh
and Pabna.
Concern for the Environment
In the year 2012, the bank contributed 2.00 lac to
Make Rajshahi Green Project and Tk. 5.00 lac to
BAPA (Bangladesh Paribesh Andolon) for
International Conference on Environment in South
Asia. Today our planet is exposed to a severe
environmental catastrophe than ever before. ABLs
corporate social responsibility contributes
generously to the development of Green Banking.
Protection and thus nourishing the environment is
part of ABLs 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 2012, the Bank has donated Tk. 21.15
lac to 8 beneficiaries of different football and hokey
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 Mohamadan, Abahony, 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 number of cricketers and
footballers are playing in the national and
international levels who were once member of ABL
sports team.
Arts and Culture
Agrani Bank Limited is always committed to the
upliftment of Bengali heritage, art, culture and
literature. The bank donated Tk. 30 lac for ongoing
construction of liberation war museum. Besides,
the bank also donated Tk.18.45 lac to other related
projects/programs.
Customers and Well-wishers
ABL feels proud to provide services to the valued
costomers without any hidden cost. The bank
serves to customers as a business partner. The
bank sincerely strives to improve business
relationship with the customers for common
benefit. By optimising financial performance at the
least cost the bank protects the interest of
customers. The bank is maintaining a good
relationship with the business friends for mutual
growth and development. The relationship with our
business partners is based on reciprocal trust and
respect. We transact with them in a fair and
transparent way.
Poverty Alleviation
It is globally accepted that the Non-Government
Organizations (NGOs) have been performing a
laudable role in poverty alleviation across the
globe, especially in Bangladesh. With a view to
widening the access to finance to the poor and
ultra poor community, ABL has been financing
NGOs since 1997 at privileged rates of interest.
ABL financed NGOs are of various categories and
capacities. Such activities also contributed to
generation of income and employment as well.
Promotion of Crop Production
To attain food security of the country ABL has been
providing credit facilities to the farmers at a lower
rate of interest (currently at 8 percent) since 1977.
A huge amount of foreign currency is spent in
every year to import pulse, oil-seeds, spices,
maize etc. In order to save foreign currency, the
Government of Bangladesh encourages our
farmers to boost up the production of above crops
by introducing rebate rate of interest and ABL is
one of the major participants of this initiative. In this
sector, ABL disbursed an amount of Tk.1,623.20
lac in the year 2012.
Promotion of Entrepreneurship
The bank envisaged fostering entrepreneurship
amongst the potential, new and small
entrepreneurs and generating employment
through financing Small and Medium Enterprises.
keeping the aim in mind, ABL does not only run
after the so called blue chips towards profit
maximize of the bank. Rather, it always remains
stick to the triple bottom line: People, Planet &
Profit and focused to the promotion of SMEs. In
this way, a lot of entrepreneurs have grown with us
through which employment opportunities are
created for a huge number of people.
Women Empowerment
As half of our population is woman, a sustainable
national progress cant be attained, if women are
left aside. Therefore, they should progressively be
brought to the mainstream of our development
activities. Considering this reality the bank through
its Nari Agrani program has been mobilizing credit
Finance Minister A. M. A. Muhit, MP, is seen with the champion team of ABL sponsored 23rd National Youth Hockey 2012
facilities in industry, service and business sector to
the potential women entrepreneurs at a reduced
rate of 10 percent interest. So far the bank has
financed several woman entrepreneurs and it will
gain due momentum in the days to come.
Awareness Building
Generation of awareness is a very useful tool to
combat social evils, like drug addiction, smoking,
pollution, terrorism, population etc. For this
purpose, the bank has continued support to
different social organizations who displayed
banner, festoon sticker, display board and use
such other communication channels for
discouraging drug, smoking, pollution, population
growth etc. The Bank continued such awareness
building activities for the year 2012.
Other CSR Activities
Agrani Bank Limited is always attentive to attain
more and more good corporate attributes. So,
apart from the exposures mentioned above, ABLs
CSR disclosure includes multi-faceted social
activities. The bank also spent Tk. 75.69 lac to 64
beneficiaries at various private, semi government
and government bodies and socio cultural
organizations.
Category-wise CSR activities of the Bank in 2012
are as follows:
64
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 a
stakeholder of the society, Agrani Bank Limited is
keen to augment CSR activities gradually in the
days to come. 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.
Agrani Bank Limited passionately believes that a
better society is fundamental precondition for a
better business environment. As such, CSR is
viewed as one of the core corporate values of the
bank. In its millennium summit held at the UN
Head Quarters, New York, USA in 2000; the United
Nations set eight goals popularly known as
Millennium Development Goals, such as: i)
eradicate extreme poverty and hunger, ii) achieve
universal primary education, iii) promote gender
equality & empower women, iv) reduce child
mortality, v) improve maternal health, vi) combat
HIV/AIDS, malaria and other diseases, vii) ensure
environmental sustainability and viii) develop a
global partnership for development. Bangladesh is
one of the signatories to achieve those goals by
2015. As such, ABL has aligned her CSR activities
partially with those goals.
Agrani Bank Limited is committed to contribute
towards social development through its CSR
program. ABLs ethical standard is not only meant
for maximising profit, rather its vision is to build up
a society where human dignity and rights receive
the highest consideration and evaluation. Banks
motto is also to improve the society and its culture
by means of CSR.
Education
Akin to the previous years, ABL has donated a
sizeable amount to various educational
institutions. In the year, the bank donated Tk.
281.18 lac to 68 beneficiaries. These helps were
extended for renovation/construction of
building/class rooms of different schools, colleges,
universities, libraries etc; giving stipend to the poor
meritorious students; sponsoring various
seminars, conferences, convocations, alumnies,
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
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. As such, ABL is committed to
assist those poor people, who have no way to
secure basic treatment. During the year 2012, the
bank has given financial assistance from its CSR
fund a sum of Tk. 85.32 lac to 127 beneficiaries to
ease their miseries.
Disaster Relief
ABLs 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 2012, the bank has spent Tk.
14.19 lac for the donation of 12,191 blankets to the
cold stricken poor people of the country in the
districts of Rangpur, Dinajpur, Thakurgaon,
Gaibandha, Kurigram, Panchagarh, Mymenshingh
and Pabna.
Concern for the Environment
In the year 2012, the bank contributed 2.00 lac to
Make Rajshahi Green Project and Tk. 5.00 lac to
BAPA (Bangladesh Paribesh Andolon) for
International Conference on Environment in South
Asia. Today our planet is exposed to a severe
environmental catastrophe than ever before. ABLs
corporate social responsibility contributes
generously to the development of Green Banking.
Protection and thus nourishing the environment is
part of ABLs 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 2012, the Bank has donated Tk. 21.15
lac to 8 beneficiaries of different football and hokey
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 Mohamadan, Abahony, 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 number of cricketers and
footballers are playing in the national and
international levels who were once member of ABL
sports team.
Arts and Culture
Agrani Bank Limited is always committed to the
upliftment of Bengali heritage, art, culture and
literature. The bank donated Tk. 30 lac for ongoing
construction of liberation war museum. Besides,
the bank also donated Tk.18.45 lac to other related
projects/programs.
Customers and Well-wishers
ABL feels proud to provide services to the valued
costomers without any hidden cost. The bank
serves to customers as a business partner. The
bank sincerely strives to improve business
relationship with the customers for common
benefit. By optimising financial performance at the
least cost the bank protects the interest of
customers. The bank is maintaining a good
relationship with the business friends for mutual
growth and development. The relationship with our
business partners is based on reciprocal trust and
respect. We transact with them in a fair and
transparent way.
Poverty Alleviation
It is globally accepted that the Non-Government
Organizations (NGOs) have been performing a
laudable role in poverty alleviation across the
globe, especially in Bangladesh. With a view to
widening the access to finance to the poor and
ultra poor community, ABL has been financing
NGOs since 1997 at privileged rates of interest.
ABL financed NGOs are of various categories and
capacities. Such activities also contributed to
generation of income and employment as well.
Promotion of Crop Production
To attain food security of the country ABL has been
providing credit facilities to the farmers at a lower
rate of interest (currently at 8 percent) since 1977.
A huge amount of foreign currency is spent in
every year to import pulse, oil-seeds, spices,
maize etc. In order to save foreign currency, the
Government of Bangladesh encourages our
farmers to boost up the production of above crops
by introducing rebate rate of interest and ABL is
one of the major participants of this initiative. In this
sector, ABL disbursed an amount of Tk.1,623.20
lac in the year 2012.
Promotion of Entrepreneurship
The bank envisaged fostering entrepreneurship
amongst the potential, new and small
entrepreneurs and generating employment
through financing Small and Medium Enterprises.
keeping the aim in mind, ABL does not only run
after the so called blue chips towards profit
maximize of the bank. Rather, it always remains
stick to the triple bottom line: People, Planet &
Profit and focused to the promotion of SMEs. In
this way, a lot of entrepreneurs have grown with us
through which employment opportunities are
created for a huge number of people.
Women Empowerment
As half of our population is woman, a sustainable
national progress cant be attained, if women are
left aside. Therefore, they should progressively be
brought to the mainstream of our development
activities. Considering this reality the bank through
its Nari Agrani program has been mobilizing credit
facilities in industry, service and business sector to
the potential women entrepreneurs at a reduced
rate of 10 percent interest. So far the bank has
financed several woman entrepreneurs and it will
gain due momentum in the days to come.
Awareness Building
Generation of awareness is a very useful tool to
combat social evils, like drug addiction, smoking,
pollution, terrorism, population etc. For this
purpose, the bank has continued support to
different social organizations who displayed
banner, festoon sticker, display board and use
such other communication channels for
discouraging drug, smoking, pollution, population
growth etc. The Bank continued such awareness
building activities for the year 2012.
Other CSR Activities
Agrani Bank Limited is always attentive to attain
more and more good corporate attributes. So,
apart from the exposures mentioned above, ABLs
CSR disclosure includes multi-faceted social
activities. The bank also spent Tk. 75.69 lac to 64
beneficiaries at various private, semi government
and government bodies and socio cultural
organizations.
Category-wise CSR activities of the Bank in 2012
are as follows:
ABL donated a Bus to the Bangabandhu Sheikh Mujibur Rahman Science and Technology University, Gopalgonj
01 Education 68 281.18
02 Health Care 127 85.32
03 Disaster Relief 12,191 14.19
04 Environment 02 7.00
05 Sports 08 21.15
06 Arts & Culture 09 48.45
07 Others 64 75.69
Total 12,469 532.98
percent in 2011 to 1.30 percent in 2012 but is
expected to rise to 1.50 percent in 2013. It has
been forecasted for eurozone to have sluggish
growth of -0.40 percent in 2012 which was 1.40
percent in 2011 and is expected to grow to 0.20
percent in 2013.
On the other hand, according to Asian
Development Outlook, October 2012, the dimming
global growth prospects and soft domestic
demand in the regions two largest economies are
slowing the pace of developing Asias expansion.
Growth was estimated to slide from 7.20 percent in
2011 to 6.10 percent in 2012, which was expected
to bounce back to register 6.70 percent growth in
2013.
Impressive Track Record of Bangladesh
Economy
Bangladeshs track record of achievements, in
different sectors and according to various
performance indicators, bear evidence that she is
making impressive and encouraging progress
towards attaining her goal of being a middle
income country by 2021. Bangladesh was able to
accelerate her GDP growth from under 4.00
percent per year to over 6.00 percent within a span
of two decades. Our country has been able to
make commendable transition from a
predominantly aid-dependent economy to a
trading nation. The combined net foreign
exchange earnings from export of goods and
remittance are at present about fifteen times more
than the aid we receive annually.
Bangladesh has established herself as the second
largest exporter of apparels in the world, after
China; our shipbuilding, footwear, pharmaceuticals
and other non-traditional exports are showing
encouraging signs. Our farmers have increased
food grains production by more than three fold
since independence enabling Bangladesh to more
towards food security. Our economy has been able
to demonstrate impressive resilience in the face of
multiple global and financial crisis. Bangladeshs
track record in attaining key Millennium
Development Goals (MDGs) including in the areas
of poverty alleviation, gender parity, and access to
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Directors Report
to the Shareholders
Bismillahir Rahmanir Rahim
Respected Shareholders
Assalamu Alaikum
On behalf of the Board of Directors, I am indeed
delighted to present before you the sixth Annual
Report of Agrani Bank Limited. The report
evaluates and analyzes banks overall operational
performance of 2012 compared to that of 2011. I
would request you to read the information and
analyses in conjunction with the audited financial
statements presented herewith. The report also
presents an overview of the global economic
scenario and the performance of Bangladesh
Economy to put in perspective the banks
performance.
Global Economic Scenario
Immediately after the recovery from economic
crisis in 2010, the global economy is again facing
challenges as the recession re-emerged in the first
half of FY 2011-12 due to sovereign debt crisis in
several euro-zone economies and economic
instability in the USA. However, steps taken to
reinvigorate the USA economy and joint efforts to
protect euro economies from further effect of
recession have slightly watered down the effect in
the second half of 2011. Despite some
deceleration in the growth of the developed
economies and slight slowdown in economic
growth of emerging and developing countries
compared to the growth momentum in 2011;
economic growth of emerging and developing
countries remains fairly strong.
According to World Economic Outlook (WEO),
October 2012 of IMF, despite that the world
economic growth slowed to 3.30 percent in 2012
from 3.80 percent in 2011, it is projected to rise to
3.60 percent in 2013. Growth of high income
countries would deteriorate further from 1.60
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health and education has received high global
acclaim.
These aforesaid achievements were possible
through a combination of factors: supportive
government policies and targeted resource
allocation; the hard work of farmers and workers at
home and abroad, contribution of the private
sector and our vibrant entrepreneurial class,
proactive role of our non-government actors
including in areas of disbursement of micro-credit,
development of micro-enterprises and raising
consciousness about economic and social issues;
target support provided by development partners.
Macroeconomic Scenario of Bangladesh
Economic Growth
Although the growth of Bangladesh economy
slowed down in the context of negative growth in
world trade at the beginning of the global financial
crisis in FY 2008-09, next year this growth
bounced back and average growth remained
above 6.00 percent in the last three years.
According to BBS, GDP grew to 6.71 percent in FY
2010-11 and the estimated GDP growth rate for FY
2011-12 is 6.32 percent. However, because of high
base effect induced by more than 5.00 percent
growth in agriculture sector during the last two
years, the growth of FY 2011-12 dipped a little
which is still satisfactory. Alongside, substantial
growth in industry and service sector has
contributed to overall GDP growth. In FY2011-12,
growth in agriculture, industry and service sectors
have estimated to 2.53 percent, 9.47 percent and
6.06 percent respectively. This year GDP and GNI
per capita stood at US$ 772 and US$ 848 which
were US$ 748 and US$ 816 respectively in the last
fiscal year.
Savings and Investment
Estimated domestic savings slightly increased
from 19.30 percent of GDP in FY 2010-11 to 19.40
percent of GDP in FY 2011-12. Investment in FY
2011-12 also showed similar feature with a slight
increase and stood at 25.40 percent of GDP in FY
2011-12 from 25.20 percent of GDP in FY2010-11.
Of which the share of private investment stood at
19.10 percent of GDP while that of public
investment was 6.30 percent in FY 2011-12. In FY
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2010-11, the private and the public sector investments
were 19.50 percent and 5.60 percent of GDP
respectively. Major initiatives of the Government
implemented in infrastructure sector including power
and reduction in cost of doing business helped create
investment-friendly environment. In addition to this,
because of satisfactory growth of remittances, national
savings in FY 2011-12 upturned to 29.40 percent of GDP
from 28.80 percent of GDP in the previous year.
Inflation
The 12 month average inflation rate reached to
10.62 percent in FY 2011-12 which was 8.80
percent in FY2010-11. Oil and food inflation in
global market and excessive credit flows to
unproductive sectors were mainly responsible for
this upturn. Inflation on point to point basis in June
2012 stood at 8.56 percent which was 10.49
percent in March 2011. From the trend analysis of
inflation in Bangladesh, it is clear that in the first
half of FY 2011- 2012 general inflation went up
because of food inflation. However, at the end of
FY2011-12, non-food inflation was the key factor in
pushing general inflation upward. At this point in
time, food inflation recorded to 7.08 (monthly rate,
point to point basis) percent from about 13.00
percent in the same month of FY2010-11.
Satisfactory food production and supply of
essential commodities including demand
management through Open Market Sale (OMS) of
the essential commodities and sufficient stock of
food grains contributed to the efforts of pulling
down food inflation. On the other hand, there was
a non-food inflationary pressure due to price hike
in international market, depreciation in exchange
rate and adjustment of oil price. In order to contain
inflation, the Government has undertaken
necessary steps by forging better coordination
between fiscal and monetary policies. Although
there was a pressure of oil price adjustment on
food price, it was transitory. It is expected that
actions like discouraging credit flows to
unproductive sector alongside adopting restrained
and effective monetary policy will reduce the
inflationary pressure.
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Fiscal Situation
Revenue Earning
A target for revenue receipt was set at Tk.1,18,385
crore (12.94 percent of GDP) in FY 2011-12 of
which NBR tax revenue accounted for Tk. 91,870
crore (10.00 percent of GDP), non-NBR revenue,
Tk. 3,915 crore (0.40 percent of GDP) and non-tax
revenue Tk. 22,600 crore (2.47 percent of GDP).
Against these targets, tax revenue from NBR
sources stood at Tk. 91,597 crore while revenue
receipts from non-NBR source and non-tax
revenue receipts were Tk. 3,633 crore and Tk.
18,550 core respectively in FY 2011-12. Total
revenue receipts increased by 19.53 percent from
Tk. 95,188 crore in FY 2010-11 to Tk. 1,13,781
crore in FY 2011-12.
Monetary and Financial Sector
Following the global financial crisis, monetary
policy stance was accommodative in FY2010-11
which has been adjusted in FY 2011-12 consistent
with the changes in the global and domestic
economic scenario. The monetary policy of FY
2011-12 was formulated to maintain a restrained
money supply and credit growth to manage the
pressure arising from a number of factors including
the lagged effect of high domestic credit growth in
the previous year, high inflation transmitted
through global price hike of essential commodities
including food items and huge borrowing from
banking system to meet government expenditure.
The restrained monetary policy was adopted to
ensure continued support for adequate credit flows
to the productive and priority sectors including
agriculture and SME, while controlling money
supply and credit to unproductive sectors. To
downturn the inflation into a tolerable level
Bangladesh Bank has re-fixed the policy rate of
REPO and reverse REPO at 7.75 percent and 5.75
percent respectively by raising 225 points on 4
occasions.
Interest Rate
There was a maximum cap of 7.00 percent interest
rate on export credit fixed since January 10, 2004
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to facilitate export earnings. Recently, the cap on
interest rate on lending in all sectors other than
pre-shipment export credit and agricultural loans
has been withdrawn. This has brought
competitiveness among banks in fixing rate of
interest on lending in a rational manner. Banks are
allowed to differentiate interest rate up to a
maximum of 3.00 percent considering comparative
risk elements involved among borrowers in the
same lending category which they would promptly
expose in their respective website and inform to
the Bangladesh Bank.
External Sector
Export
In the wake of the recovery from global financial
recession, the export trade of Bangladesh made a
turnaround. However, sovereign credit crisis in
eurozone which is one of Bangladeshs main
export destinations is having its impact on export
trade. The export earnings of Bangladesh stood at
US$ 24,288 million in FY 2011-12, which was 5.90
percent higher than the export earnings (US$
22,928 million) of FY 2010-11. Export earnings in
FY 2011-12 by major categories increased mainly
for footwear (30.10 percent), engineering products
(21.10 percent), woven garments (13.90 percent)
and leather (10.80 percent). On the other hand,
export earnings dipped in respect of raw jute
(-25.40 percent), ceramic product (-10.20 percent)
and jute goods (-7.50 percent). Some of the
facilities under the incentive package declared by
the Government are still continuing. Assistance for
the entrepreneurs tiled New Market Exploration
Assistance announced under the incentive
package is also being extended this year for
diversification of goods and exploration of new
export market. In the meantime, export markets
have been created in Japan, Korea, South Africa
and Turkey. Besides, due to reduction of duties by
India, Bangladeshi commodities are having gainful
access to India.
Import
The total import payments (C&F) stood at US$
35,516 million during FY 2011-12, which was 5.50
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percent higher than the import payments of US$
33,657 million of the preceding year. Although
import payments increased at the beginning of this
fiscal year due to price hike of fuel in the global
market and higher demand of fuel for electricity
generation, it slowed down towards the end of the
year as import of unimportant goods were
discouraged. Analyzing the category of imported
goods, it is observed that, import payments for
industrial raw materials, petroleum and petroleum
products increased by 22.75 percent, 11.15
percent and 21.76 percent respectively, while
import of capital machinery and primary
commodities decreased by 13.73 percent and
25.79 percent respectively.
Overseas Employment and Remittance
Although export of manpower slowed down in the
first half of FY 2010-11 because of the impact of
global recession, particularly on the real estate
markets in the Middle East, and on industrial
labour demand in some South East Asian
economies such as Malaysia, it began to increase
from January 2011. The amount of remittances
increased by 6.03 percent to US$ 11,650.32
million in FY 2010-11 compared to that of the
previous year. Bangladesh earned remittances of
US$ 12,843.40 million in FY 2011-12 which was
10.24 percent higher than the amount of the
previous year. The Government has undertaken
several initiatives including diplomatic approaches
to explore new markets. As many as 6.91 lakh
workers went abroad in quest of jobs in FY
2011-12, which was 57.40 percent higher than the
number stood at in the previous year. To begin
manpower export in full swing to Africa, East
Europe and Latin America, a number of diplomatic
initiatives have been undertaken alongside
establishing new labour wings in several countries.
There is also an attempt to impart training on
various trades to create skilled labour force to
meet the demand of labour markets abroad.
Balance of Payment
Trade balance recorded a rise in deficit by 3.20
percent to US$ 7,995 million in the FY 2011-12 as
compared to the deficit of US$ 7,744 million during
FY 2010-11. During this period, the current
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account balance recorded a surplus of US$ 1,630
million as compared to the surplus of US$ 885
million of FY 2010-11.The deficit recorded in the
overall balance of payment stood at US$ 494
million in FY 2011-12, which was US$ 656 million
in FY 2010-11.
Medium Term Prospect of Bangladesh Economy
In the current context of domestic and global
economic scenario, a Medium-Term
Macroeconomic Framework (MTMF) for FY
2012-2016 has been worked out based on some
fundamental assumptions. Just after the recovery of
the world economy from yearlong global recession
during 2008-09, devastating tsunami and
destruction of nuclear power plant in Japan, the
ongoing sovereign debt crisis in several eurozone
economies and continuing economic instability and
high unemployment in the USA, have slowed the
pace of the world economic growth significantly. As
a result, the global output decreased in 2011.
However, afterwards, an integrated policy and
strategies to overcome the eurozone crisis,
rebouncing of US economic growth and sustaining
the domestic demand in emerging and developing
economies, it was expected that global output
would increase in 2012.
Different macroeconomic indicators for the next
fiscal year and over the medium term have been
updated in view of continued satisfactory
performance in revenue collection, growth in
agriculture sector, investment in infrastructure
including power, exchange rate stability and
containment of inflationary pressure.
In the Medium Term Macroeconomic Framework,
real GDP growth has been estimated at 7.20
percent for FY 2012-13, 7.60 percent for FY
2013-14, 8.00 percent for FY 2014-15 and 9.10
percent for FY 2015-16 respectively. It is expected
that investment will increase from 25.40 percent of
GDP in FY 2011-12 to 33.70 percent in FY 2016-17
where private and public investment will stand at
25.20 percent and 8.50 percent respectively. On
the other hand, domestic savings is expected to
increase to 22.40 percent from 19.60 percent and
national savings will go up from 29.40 percent to
32.80 percent in the medium term.
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Development of agriculture sector including that of
power, energy and communication sectors are
crucial for achieving the desired growth of GDP.
Undertaking initiatives as envisaged in the
roadmap for power, exploring new gas deposits to
meet existing energy demand and utilising
renewable energy will ensure investment-friendly
environment in power and energy sector. It is also
expected that infrastructure deficit will be removed
by reinvigorating public-Private Partnership (PPP)
initiatives in the development of communication
sector and efficient and timely implementation of
Annual Development Program. In order to ensure
proper implementation of projects to be taken up
under PPP, a scheme has been worked out and a
set of policies and guidelines have been approved
by the Government.
In agriculture sector, there was a consistent and
positive growth over the last three years. Huge
government support such as subsidy, power
supply for irrigation, flow of agricultural credit,
innovation of new variety of salinity tolerant seed
and weather, and increasing assistance to
agro-based industries contributed significantly in
achieving sustainable growth in agriculture sector.
All these activities will continue which is expected
to support sustainable agricultural growth.
The estimated government expenditure stood at
16.50 percent of GDP in FY 2011-12 which is
expected to be 18.40 percent in FY 2012-13. The
target for FY 2016-17 has been set at 20.60
percent of GDP. Against this, expenditure on
Annual Development Programme is planned to be
increased from 3.90 percent of GDP in FY 2011-12
to 7.00 percent of GDP in FY 2016-17.
For financing the deficit, Government has planned
to reduce borrowing from the banking system. In
this regard, priority has been given to foreign
assistance which were committed and in pipe line.
For consecutive two years, Standard and Poors
(S&P) and Moodys retained the same sovereign
credit rating for Bangladesh. In their respective
lists rating for Bangladesh is BB- and Ba3.
According to this rating, in terms of credit
worthiness, Bangladesh is at par with the
Philippines, Indonesia and Vietnam. Such rating
will decrease the cost of debenture and import
payment and will help in attracting more foreign
investment.
G cew ARb me ne g~jZ we`yr I Rvjvwb, hvMvhvM
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Containing inflation is a big challenge for
macroeconomic stability. In MTMF, inflation has
forecasted to bring down at 7.50 percent in the
upcoming fiscal year and that is expected to bring
out almost 5.00 percent. It was expected that the
steps taken to increase food production,
uninterrupted food supply and enhance food
security would also be helpful in reining on
inflation. Bangladesh Bank in its monetary policy
statement has laid emphasis on limiting money
supply and discouraging credit flow to the
unproductive sectors. Side by side, emphasis is
also given to ensure credit flow to productive and
priority sectors including agriculture and SME
sectors.
Financial recession in eurozone economies, one of
the major export markets of Bangladesh, has
affected its export sector slowing it down to 6.20
percent in FY 2011-12. However, it has been
possible to tackle the crisis through integrated
efforts of euro countries. Besides, initiatives on
exploring new markets and diversification of export
goods have already contributed to our economy,
though to a limited extent.
The remittances from expatriate Bangladeshi
workers grew by 10.24 percent during this year
which has been estimated to be 12.00 percent for
next years. It is expected that concerted efforts on
exploring new labour markets and intensive
diplomatic initiatives will increase expatriate
employment and contribute towards sustaining the
existing trends of remittance of flows. The current
account balance (CAB) decreased but in MTMF it
is expected to bring back in a positive territory.
Pressures on exchange rate and foreign exchange
reserve have been offset due to adoption of
effective fiscal and monetary policy stances. Both
the exchange rate and reserve situation remained
stable at the end of FY 2011-12. The goal of
maintaining macroeconomic stability together with
expected GDP growth and target of inflation will be
achieved if the future shocks from domestic as well
as external sectors could be tackled properly.
Digital Bangladesh
Its true meaning lies in proper application of
technology to implement all the commitments of
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Kiv nqQ Zvi dj mU KvwUq DVv me ne ej Avkv
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|<|< << < | | -|, <|<<< <| <
gy`vbxwZi dj Zv wbimb Kiv me nqQ| 2011-12
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wWwRUvj evsjv`k
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the government regarding education, health,
employment and poverty alleviation. The main
purpose of this idea is to improve the standards of
living of the people by empowering them, ensuring
transparency and accountability in all spheres of
life, establishing good-governance and, above all,
bringing public services to their doorsteps through
the most effective use of technology. In short,
Digital Bangladesh is a happy prosperous and
enlightened Bangladesh, which is free from
hunger, poverty, inequality and corruption and
belongs completely to its people and is driven
forward by digital technology.
Perspective Plan 2010-2021
The Government keeping in view the Golden
Jubilee of Independence has formulated
Bangladesh Perspective Planning 2010-2021,
in the light of Vision-2021 to attain a definite set of
objectives that relate to economic and social
development of Bangladesh. The document
reflects the hopes and aspirations of common
people which has been given the top priority and
incorporates the development philosophy of the
government, its longterm vision and strategic goals
of desired development. The fundamental
objective of this long term plan is to alleviate
poverty by achieving higher growth and to turn
Bangladesh into a medium income country where
poverty will be brought to the minimum and
regional disparity in the sphere of economic
development will be reduced significantly.
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cwZ cwiKbv 2010-2021
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`k cwiYZ Kiv hLvb `vwi` mewb chvq Aevb
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to the Shareholders
Directors Report
66
percent in 2011 to 1.30 percent in 2012 but is
expected to rise to 1.50 percent in 2013. It has
been forecasted for eurozone to have sluggish
growth of -0.40 percent in 2012 which was 1.40
percent in 2011 and is expected to grow to 0.20
percent in 2013.
On the other hand, according to Asian
Development Outlook, October 2012, the dimming
global growth prospects and soft domestic
demand in the regions two largest economies are
slowing the pace of developing Asias expansion.
Growth was estimated to slide from 7.20 percent in
2011 to 6.10 percent in 2012, which was expected
to bounce back to register 6.70 percent growth in
2013.
Impressive Track Record of Bangladesh
Economy
Bangladeshs track record of achievements, in
different sectors and according to various
performance indicators, bear evidence that she is
making impressive and encouraging progress
towards attaining her goal of being a middle
income country by 2021. Bangladesh was able to
accelerate her GDP growth from under 4.00
percent per year to over 6.00 percent within a span
of two decades. Our country has been able to
make commendable transition from a
predominantly aid-dependent economy to a
trading nation. The combined net foreign
exchange earnings from export of goods and
remittance are at present about fifteen times more
than the aid we receive annually.
Bangladesh has established herself as the second
largest exporter of apparels in the world, after
China; our shipbuilding, footwear, pharmaceuticals
and other non-traditional exports are showing
encouraging signs. Our farmers have increased
food grains production by more than three fold
since independence enabling Bangladesh to more
towards food security. Our economy has been able
to demonstrate impressive resilience in the face of
multiple global and financial crisis. Bangladeshs
track record in attaining key Millennium
Development Goals (MDGs) including in the areas
of poverty alleviation, gender parity, and access to
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Directors Report
to the Shareholders
Bismillahir Rahmanir Rahim
Respected Shareholders
Assalamu Alaikum
On behalf of the Board of Directors, I am indeed
delighted to present before you the sixth Annual
Report of Agrani Bank Limited. The report
evaluates and analyzes banks overall operational
performance of 2012 compared to that of 2011. I
would request you to read the information and
analyses in conjunction with the audited financial
statements presented herewith. The report also
presents an overview of the global economic
scenario and the performance of Bangladesh
Economy to put in perspective the banks
performance.
Global Economic Scenario
Immediately after the recovery from economic
crisis in 2010, the global economy is again facing
challenges as the recession re-emerged in the first
half of FY 2011-12 due to sovereign debt crisis in
several euro-zone economies and economic
instability in the USA. However, steps taken to
reinvigorate the USA economy and joint efforts to
protect euro economies from further effect of
recession have slightly watered down the effect in
the second half of 2011. Despite some
deceleration in the growth of the developed
economies and slight slowdown in economic
growth of emerging and developing countries
compared to the growth momentum in 2011;
economic growth of emerging and developing
countries remains fairly strong.
According to World Economic Outlook (WEO),
October 2012 of IMF, despite that the world
economic growth slowed to 3.30 percent in 2012
from 3.80 percent in 2011, it is projected to rise to
3.60 percent in 2013. Growth of high income
countries would deteriorate further from 1.60
kqvinvvi`i cwZ
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debt) |< |<|< =< <<|< |< |<
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<||< |*||< =< #<| +< <||< <|
g`vi cfve _K ivi Rb h mwwjZ cPv MnY Kiv
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health and education has received high global
acclaim.
These aforesaid achievements were possible
through a combination of factors: supportive
government policies and targeted resource
allocation; the hard work of farmers and workers at
home and abroad, contribution of the private
sector and our vibrant entrepreneurial class,
proactive role of our non-government actors
including in areas of disbursement of micro-credit,
development of micro-enterprises and raising
consciousness about economic and social issues;
target support provided by development partners.
Macroeconomic Scenario of Bangladesh
Economic Growth
Although the growth of Bangladesh economy
slowed down in the context of negative growth in
world trade at the beginning of the global financial
crisis in FY 2008-09, next year this growth
bounced back and average growth remained
above 6.00 percent in the last three years.
According to BBS, GDP grew to 6.71 percent in FY
2010-11 and the estimated GDP growth rate for FY
2011-12 is 6.32 percent. However, because of high
base effect induced by more than 5.00 percent
growth in agriculture sector during the last two
years, the growth of FY 2011-12 dipped a little
which is still satisfactory. Alongside, substantial
growth in industry and service sector has
contributed to overall GDP growth. In FY2011-12,
growth in agriculture, industry and service sectors
have estimated to 2.53 percent, 9.47 percent and
6.06 percent respectively. This year GDP and GNI
per capita stood at US$ 772 and US$ 848 which
were US$ 748 and US$ 816 respectively in the last
fiscal year.
Savings and Investment
Estimated domestic savings slightly increased
from 19.30 percent of GDP in FY 2010-11 to 19.40
percent of GDP in FY 2011-12. Investment in FY
2011-12 also showed similar feature with a slight
increase and stood at 25.40 percent of GDP in FY
2011-12 from 25.20 percent of GDP in FY2010-11.
Of which the share of private investment stood at
19.10 percent of GDP while that of public
investment was 6.30 percent in FY 2011-12. In FY
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2010-11, the private and the public sector investments
were 19.50 percent and 5.60 percent of GDP
respectively. Major initiatives of the Government
implemented in infrastructure sector including power
and reduction in cost of doing business helped create
investment-friendly environment. In addition to this,
because of satisfactory growth of remittances, national
savings in FY 2011-12 upturned to 29.40 percent of GDP
from 28.80 percent of GDP in the previous year.
Inflation
The 12 month average inflation rate reached to
10.62 percent in FY 2011-12 which was 8.80
percent in FY2010-11. Oil and food inflation in
global market and excessive credit flows to
unproductive sectors were mainly responsible for
this upturn. Inflation on point to point basis in June
2012 stood at 8.56 percent which was 10.49
percent in March 2011. From the trend analysis of
inflation in Bangladesh, it is clear that in the first
half of FY 2011- 2012 general inflation went up
because of food inflation. However, at the end of
FY2011-12, non-food inflation was the key factor in
pushing general inflation upward. At this point in
time, food inflation recorded to 7.08 (monthly rate,
point to point basis) percent from about 13.00
percent in the same month of FY2010-11.
Satisfactory food production and supply of
essential commodities including demand
management through Open Market Sale (OMS) of
the essential commodities and sufficient stock of
food grains contributed to the efforts of pulling
down food inflation. On the other hand, there was
a non-food inflationary pressure due to price hike
in international market, depreciation in exchange
rate and adjustment of oil price. In order to contain
inflation, the Government has undertaken
necessary steps by forging better coordination
between fiscal and monetary policies. Although
there was a pressure of oil price adjustment on
food price, it was transitory. It is expected that
actions like discouraging credit flows to
unproductive sector alongside adopting restrained
and effective monetary policy will reduce the
inflationary pressure.
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Fiscal Situation
Revenue Earning
A target for revenue receipt was set at Tk.1,18,385
crore (12.94 percent of GDP) in FY 2011-12 of
which NBR tax revenue accounted for Tk. 91,870
crore (10.00 percent of GDP), non-NBR revenue,
Tk. 3,915 crore (0.40 percent of GDP) and non-tax
revenue Tk. 22,600 crore (2.47 percent of GDP).
Against these targets, tax revenue from NBR
sources stood at Tk. 91,597 crore while revenue
receipts from non-NBR source and non-tax
revenue receipts were Tk. 3,633 crore and Tk.
18,550 core respectively in FY 2011-12. Total
revenue receipts increased by 19.53 percent from
Tk. 95,188 crore in FY 2010-11 to Tk. 1,13,781
crore in FY 2011-12.
Monetary and Financial Sector
Following the global financial crisis, monetary
policy stance was accommodative in FY2010-11
which has been adjusted in FY 2011-12 consistent
with the changes in the global and domestic
economic scenario. The monetary policy of FY
2011-12 was formulated to maintain a restrained
money supply and credit growth to manage the
pressure arising from a number of factors including
the lagged effect of high domestic credit growth in
the previous year, high inflation transmitted
through global price hike of essential commodities
including food items and huge borrowing from
banking system to meet government expenditure.
The restrained monetary policy was adopted to
ensure continued support for adequate credit flows
to the productive and priority sectors including
agriculture and SME, while controlling money
supply and credit to unproductive sectors. To
downturn the inflation into a tolerable level
Bangladesh Bank has re-fixed the policy rate of
REPO and reverse REPO at 7.75 percent and 5.75
percent respectively by raising 225 points on 4
occasions.
Interest Rate
There was a maximum cap of 7.00 percent interest
rate on export credit fixed since January 10, 2004
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gy`v I Avw_K LvZ
| <<< |<<| <|< < <| |<||<
| |<-|-<<| <| <||
<|| -||| (accomodative monetary
policy)- || |<< || - <<|
eQii AfixY FYi DP cewi wejw^Z cfve (lag
effect) |||< <||< |-- | || -<<
<|+< |< ||< =<<| <|+ =< <|-t|
e`wkK gy`vi wb Atcevni dj jb`b fvimvg
DZ Pvc ckgbi j 2011-12 gy`v bxwZ cYxZ nq|
-| || -| < <|| < < |-| <
< | < <|| |< |||| <|<,
z` I gvSvwi D`vM LvZmn Drcv`bkxj Ges AMvwaKvi
| < <| <|| ||+<<< << <|<|
<<| - ||< -| <| || ||<
<||- <|< | <<<< | <
|| - -|< <| =< |<| <| -'-| | :
<| <|+ << <<|= -.-c < c.-c |
t|<|< << , -:-:: <<<< ||
-< -|< | - -| --c <| <|+ <<| -
my`i nvi
||<< | |< <|< |<| <| | -
-|< (flexible interest rate) ||||< <|
to facilitate export earnings. Recently, the cap on
interest rate on lending in all sectors other than
pre-shipment export credit and agricultural loans
has been withdrawn. This has brought
competitiveness among banks in fixing rate of
interest on lending in a rational manner. Banks are
allowed to differentiate interest rate up to a
maximum of 3.00 percent considering comparative
risk elements involved among borrowers in the
same lending category which they would promptly
expose in their respective website and inform to
the Bangladesh Bank.
External Sector
Export
In the wake of the recovery from global financial
recession, the export trade of Bangladesh made a
turnaround. However, sovereign credit crisis in
eurozone which is one of Bangladeshs main
export destinations is having its impact on export
trade. The export earnings of Bangladesh stood at
US$ 24,288 million in FY 2011-12, which was 5.90
percent higher than the export earnings (US$
22,928 million) of FY 2010-11. Export earnings in
FY 2011-12 by major categories increased mainly
for footwear (30.10 percent), engineering products
(21.10 percent), woven garments (13.90 percent)
and leather (10.80 percent). On the other hand,
export earnings dipped in respect of raw jute
(-25.40 percent), ceramic product (-10.20 percent)
and jute goods (-7.50 percent). Some of the
facilities under the incentive package declared by
the Government are still continuing. Assistance for
the entrepreneurs tiled New Market Exploration
Assistance announced under the incentive
package is also being extended this year for
diversification of goods and exploration of new
export market. In the meantime, export markets
have been created in Japan, Korea, South Africa
and Turkey. Besides, due to reduction of duties by
India, Bangladeshi commodities are having gainful
access to India.
Import
The total import payments (C&F) stood at US$
35,516 million during FY 2011-12, which was 5.50
<|<|< |-< - -|< |<|<< | -|-
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mvcwZKKvj mvweK cwiwwZ chvjvPbv Ki
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mg~n AvgvbZ I FYi my`/gybvdv nvi Zzjbvg~jK SzuwK
|<<| <| . | < <| << |<< =<
|<<| = - -|< ||<|< |-< -
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|< ||< New Market Exploration Assistance
=< |<| -||-< <|< -|| -| <|-
< #|< <||< |-< ||, <||<|,
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percent higher than the import payments of US$
33,657 million of the preceding year. Although
import payments increased at the beginning of this
fiscal year due to price hike of fuel in the global
market and higher demand of fuel for electricity
generation, it slowed down towards the end of the
year as import of unimportant goods were
discouraged. Analyzing the category of imported
goods, it is observed that, import payments for
industrial raw materials, petroleum and petroleum
products increased by 22.75 percent, 11.15
percent and 21.76 percent respectively, while
import of capital machinery and primary
commodities decreased by 13.73 percent and
25.79 percent respectively.
Overseas Employment and Remittance
Although export of manpower slowed down in the
first half of FY 2010-11 because of the impact of
global recession, particularly on the real estate
markets in the Middle East, and on industrial
labour demand in some South East Asian
economies such as Malaysia, it began to increase
from January 2011. The amount of remittances
increased by 6.03 percent to US$ 11,650.32
million in FY 2010-11 compared to that of the
previous year. Bangladesh earned remittances of
US$ 12,843.40 million in FY 2011-12 which was
10.24 percent higher than the amount of the
previous year. The Government has undertaken
several initiatives including diplomatic approaches
to explore new markets. As many as 6.91 lakh
workers went abroad in quest of jobs in FY
2011-12, which was 57.40 percent higher than the
number stood at in the previous year. To begin
manpower export in full swing to Africa, East
Europe and Latin America, a number of diplomatic
initiatives have been undertaken alongside
establishing new labour wings in several countries.
There is also an attempt to impart training on
various trades to create skilled labour force to
meet the demand of labour markets abroad.
Balance of Payment
Trade balance recorded a rise in deficit by 3.20
percent to US$ 7,995 million in the FY 2011-12 as
compared to the deficit of US$ 7,744 million during
FY 2010-11. During this period, the current
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wbirmvwnZ Kivi dj mvcwZK mgq Avg`vwb cew
-| |-|| < << << -| <| <,
FYc wbwi wfwZ 2012 mb g~jabx hcvwZ Ges
| |-||< < -| <<|= :.-
| =< -c.-> | |-|| < <|+
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< |||| -:.-: |
e`wkK Kgmsvb I iwgUv
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|||- <<| - <| ||--| -| |<|
<||- - | <|| |<| -| | =
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account balance recorded a surplus of US$ 1,630
million as compared to the surplus of US$ 885
million of FY 2010-11.The deficit recorded in the
overall balance of payment stood at US$ 494
million in FY 2011-12, which was US$ 656 million
in FY 2010-11.
Medium Term Prospect of Bangladesh Economy
In the current context of domestic and global
economic scenario, a Medium-Term
Macroeconomic Framework (MTMF) for FY
2012-2016 has been worked out based on some
fundamental assumptions. Just after the recovery of
the world economy from yearlong global recession
during 2008-09, devastating tsunami and
destruction of nuclear power plant in Japan, the
ongoing sovereign debt crisis in several eurozone
economies and continuing economic instability and
high unemployment in the USA, have slowed the
pace of the world economic growth significantly. As
a result, the global output decreased in 2011.
However, afterwards, an integrated policy and
strategies to overcome the eurozone crisis,
rebouncing of US economic growth and sustaining
the domestic demand in emerging and developing
economies, it was expected that global output
would increase in 2012.
Different macroeconomic indicators for the next
fiscal year and over the medium term have been
updated in view of continued satisfactory
performance in revenue collection, growth in
agriculture sector, investment in infrastructure
including power, exchange rate stability and
containment of inflationary pressure.
In the Medium Term Macroeconomic Framework,
real GDP growth has been estimated at 7.20
percent for FY 2012-13, 7.60 percent for FY
2013-14, 8.00 percent for FY 2014-15 and 9.10
percent for FY 2015-16 respectively. It is expected
that investment will increase from 25.40 percent of
GDP in FY 2011-12 to 33.70 percent in FY 2016-17
where private and public investment will stand at
25.20 percent and 8.50 percent respectively. On
the other hand, domestic savings is expected to
increase to 22.40 percent from 19.60 percent and
national savings will go up from 29.40 percent to
32.80 percent in the medium term.
| ||< |<, <| <<| <<< = |-|<
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|<
evsjv`ki A_bxwZi gagqv`x mvebv
-| <<| |<<| <|< < <| <|<
|<||< | <| ||- |< << ||
<< <|-| ||< <|< <|||, (Medium
Term Macroeconomic Framework- MTMF,
2012-16) <<| - ----> |<||
|<-| << <||< <+|<< < || <|<|
|<- || < |<||<< |<- <- |<<, #<|
+ |< |< <|| =< <<|<
|< |< < |<< |<| =<| -|< |-<
- -:: | <|< <|+ (global
output) < <| < #<| +< | <<
DiYi mwwjZ bxwZ Kkj MnY, hyivi A_bxwZZ
| |< || =< |<<|| < | <||< -
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-:- | |< <||< <|+ <|+ |< < || <<|
-
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Development of agriculture sector including that of
power, energy and communication sectors are
crucial for achieving the desired growth of GDP.
Undertaking initiatives as envisaged in the
roadmap for power, exploring new gas deposits to
meet existing energy demand and utilising
renewable energy will ensure investment-friendly
environment in power and energy sector. It is also
expected that infrastructure deficit will be removed
by reinvigorating public-Private Partnership (PPP)
initiatives in the development of communication
sector and efficient and timely implementation of
Annual Development Program. In order to ensure
proper implementation of projects to be taken up
under PPP, a scheme has been worked out and a
set of policies and guidelines have been approved
by the Government.
In agriculture sector, there was a consistent and
positive growth over the last three years. Huge
government support such as subsidy, power
supply for irrigation, flow of agricultural credit,
innovation of new variety of salinity tolerant seed
and weather, and increasing assistance to
agro-based industries contributed significantly in
achieving sustainable growth in agriculture sector.
All these activities will continue which is expected
to support sustainable agricultural growth.
The estimated government expenditure stood at
16.50 percent of GDP in FY 2011-12 which is
expected to be 18.40 percent in FY 2012-13. The
target for FY 2016-17 has been set at 20.60
percent of GDP. Against this, expenditure on
Annual Development Programme is planned to be
increased from 3.90 percent of GDP in FY 2011-12
to 7.00 percent of GDP in FY 2016-17.
For financing the deficit, Government has planned
to reduce borrowing from the banking system. In
this regard, priority has been given to foreign
assistance which were committed and in pipe line.
For consecutive two years, Standard and Poors
(S&P) and Moodys retained the same sovereign
credit rating for Bangladesh. In their respective
lists rating for Bangladesh is BB- and Ba3.
According to this rating, in terms of credit
worthiness, Bangladesh is at par with the
Philippines, Indonesia and Vietnam. Such rating
will decrease the cost of debenture and import
payment and will help in attracting more foreign
investment.
G cew ARb me ne g~jZ we`yr I Rvjvwb, hvMvhvM
<<||| =< <|< |< < |<| |<- |
<<|<< <<| <|| <|<= -, |||< ||--|
| < =< <|<| ||| <<-|<<
|< |<- < |||< ||--| < |<|| |<<<
|< < || <<| - <||<| |<
<<||<-<<<||< |-||< (|||) -|<
=| | =< =<#|< <||<< <|< <
<|<|< |< <<||| |
(infrastructure deficit) `~i Kiv me ne ej cZvkv
<<| - |||'< |<| |<< < < <r
- <<| -< |< <|<|< =<| <| -
=< |||| < |-|<| <<|< |- <<
<|< | | << <|+< <|<|<||-<| <| |
<|< | <# <|+ < <|< <<||<
-|| <- <| |< -|, < |<<|
|<- <<<|-, <|< < <|- <|+, |< |<-|<| <
jeYvZv mwnz exR Dveb Ges Kwl wfwK wki
|<<| -|| -| | <|< | <|+ |<<
chvq ivLv me nqQ| Kwl LvZ G Kvhgmg~n
|<<< <|- <|<< <| <|<| <# <|+ <|
<| |<| <|< < || <<| <|
<<||< < -::-:- <<<< ||< ||
(|||'< ::.c |) << -:--: <<<
|||'< :-.- | =< =| | -::-:-
<<< ||- |||'< -.: | | <<|<
|| |<|< <<| - =< < <||<<
<| < -::-:- <<<< |||'< .> |
<< -::-:- <<< |||'< -. | |<
|<<r| <
|| <| <|< <<| << - -|<
|<<r| < = |#|# <|<| |
<-|< -|| |$< <|<<< - - <
| |< -< |<<| <<|<< |<<|
<| , Standard & Poors (S & P) =<
Moodys <||-< << -'<< =<# |<
| <| ||<| < = <| ||<| S & P
=< Moodys <||-< BB- =< Ba 3 | -|
<< = <| <|| |<|<< ||<< |<
|<|< <||- |||#, #-||| < ||<
<| << =< <| =< <
< -| |< =< = |-|| < | -< -
<-|< |<||< |<| <|+ |<
Containing inflation is a big challenge for
macroeconomic stability. In MTMF, inflation has
forecasted to bring down at 7.50 percent in the
upcoming fiscal year and that is expected to bring
out almost 5.00 percent. It was expected that the
steps taken to increase food production,
uninterrupted food supply and enhance food
security would also be helpful in reining on
inflation. Bangladesh Bank in its monetary policy
statement has laid emphasis on limiting money
supply and discouraging credit flow to the
unproductive sectors. Side by side, emphasis is
also given to ensure credit flow to productive and
priority sectors including agriculture and SME
sectors.
Financial recession in eurozone economies, one of
the major export markets of Bangladesh, has
affected its export sector slowing it down to 6.20
percent in FY 2011-12. However, it has been
possible to tackle the crisis through integrated
efforts of euro countries. Besides, initiatives on
exploring new markets and diversification of export
goods have already contributed to our economy,
though to a limited extent.
The remittances from expatriate Bangladeshi
workers grew by 10.24 percent during this year
which has been estimated to be 12.00 percent for
next years. It is expected that concerted efforts on
exploring new labour markets and intensive
diplomatic initiatives will increase expatriate
employment and contribute towards sustaining the
existing trends of remittance of flows. The current
account balance (CAB) decreased but in MTMF it
is expected to bring back in a positive territory.
Pressures on exchange rate and foreign exchange
reserve have been offset due to adoption of
effective fiscal and monetary policy stances. Both
the exchange rate and reserve situation remained
stable at the end of FY 2011-12. The goal of
maintaining macroeconomic stability together with
expected GDP growth and target of inflation will be
achieved if the future shocks from domestic as well
as external sectors could be tackled properly.
Digital Bangladesh
Its true meaning lies in proper application of
technology to implement all the commitments of
<|+ < < |= -| ||<
| <|| MTMF-= ||| <<< ||< -|<
-| -.c | =< <|- | | c.
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|< <| |- |- <|+ <<<|- <<|
||< <|| =< |- |<|| |<-|< <<|<
<<|<< -| <|<=- || | |<|
<|< < || <<| - -| || -| <
<|| < < |-| < < |
FYi hvMvb wbqYi cvkvcvwk Kwl, z` I gvSvwi
-| |- |-| =< ||<<|< | <
<| <|| ||+<<< << <|<| <<| -
<||-< <| <||<||< #<|| #|<
<||< <|< |< <|| |< <|+< <<
|<|< |< =< | -::-:- <<< :.-
| = < #<| < |<
`kjvi mwwjZ cqvm Ges G j h Kvhg MnY
Kiv nqQ Zvi dj mU KvwUq DVv me ne ej Avkv
<<| <| =|$|, <||< < < <||
<|<<< < <|<= -| | -| |<
|| <| -< -|
<||* <|-< <|+ | <<< :.-- |
-, <| <<| << - :-. | -|< <|+ |<
< <<| - <|- <|< -|<
|< <||< << | <-|<
<| <|+ < <||* <|-< <|<| <| <|< <
|| <<| - | |-|<< |<|< -|
< | <|< <| <|<< < MTMF-=
Kiv nqQ| mcwZ gy`vi wewbgq nvi I e`wkK gy`vi
|<|< << < | | -|, <|<<< <| <
gy`vbxwZi dj Zv wbimb Kiv me nqQ| 2011-12
<<< -|< |<|< -|<< |||| |< =
=< |<| |<||< ||| <| < <|<
<| < -|||< < <| < <|-t|<
|| |<|<| << ||< |||| <| <||-
KvwLZ cew ARb me ne ej Avkv Kiv hvq|
wWwRUvj evsjv`k
<|< |<< |< |< ||, | < -||<-
|<|- <<|<< < || << < =< <
the government regarding education, health,
employment and poverty alleviation. The main
purpose of this idea is to improve the standards of
living of the people by empowering them, ensuring
transparency and accountability in all spheres of
life, establishing good-governance and, above all,
bringing public services to their doorsteps through
the most effective use of technology. In short,
Digital Bangladesh is a happy prosperous and
enlightened Bangladesh, which is free from
hunger, poverty, inequality and corruption and
belongs completely to its people and is driven
forward by digital technology.
Perspective Plan 2010-2021
The Government keeping in view the Golden
Jubilee of Independence has formulated
Bangladesh Perspective Planning 2010-2021,
in the light of Vision-2021 to attain a definite set of
objectives that relate to economic and social
development of Bangladesh. The document
reflects the hopes and aspirations of common
people which has been given the top priority and
incorporates the development philosophy of the
government, its longterm vision and strategic goals
of desired development. The fundamental
objective of this long term plan is to alleviate
poverty by achieving higher growth and to turn
Bangladesh into a medium income country where
poverty will be brought to the minimum and
regional disparity in the sphere of economic
development will be reduced significantly.
< |<<| ||- ||| <||--<|<|< |
+ -| <|< |<< | << <
|< |< |-< |<<||< || <<|,
|< < | < -|<+| ||+ <<|,
| || <<| =< <||< < -|<|$|
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<||- -| |-+ < |||< <||-, < -
-< < |<< <, <| <|, -||<-, | <
-|| <|<< | =< < - ||| <| |<
|< |< |-< =| <|<
cwZ cwiKbv 2010-2021
|<||< < |< | < <<|< '<||-
| |<<r| -:---:' |<< |<<r| -|
<< <||-< <|< < |||< <
||- < # <<r---: = |<<r|
-< <|| < < || -
<< ||< |<|<< ||-|<||< <|
||<<|< |- ||< -||-| - < <
| <<| - = -||-| <<r< |<
+ - < <|+ < |< -||<- |<|
=< --: |< < <||-< =<| < |<
`k cwiYZ Kiv hLvb `vwi` mewb chvq Aevb
<<< =< <|< |+|< << < <|<
Annual Report 2012 67
percent in 2011 to 1.30 percent in 2012 but is
expected to rise to 1.50 percent in 2013. It has
been forecasted for eurozone to have sluggish
growth of -0.40 percent in 2012 which was 1.40
percent in 2011 and is expected to grow to 0.20
percent in 2013.
On the other hand, according to Asian
Development Outlook, October 2012, the dimming
global growth prospects and soft domestic
demand in the regions two largest economies are
slowing the pace of developing Asias expansion.
Growth was estimated to slide from 7.20 percent in
2011 to 6.10 percent in 2012, which was expected
to bounce back to register 6.70 percent growth in
2013.
Impressive Track Record of Bangladesh
Economy
Bangladeshs track record of achievements, in
different sectors and according to various
performance indicators, bear evidence that she is
making impressive and encouraging progress
towards attaining her goal of being a middle
income country by 2021. Bangladesh was able to
accelerate her GDP growth from under 4.00
percent per year to over 6.00 percent within a span
of two decades. Our country has been able to
make commendable transition from a
predominantly aid-dependent economy to a
trading nation. The combined net foreign
exchange earnings from export of goods and
remittance are at present about fifteen times more
than the aid we receive annually.
Bangladesh has established herself as the second
largest exporter of apparels in the world, after
China; our shipbuilding, footwear, pharmaceuticals
and other non-traditional exports are showing
encouraging signs. Our farmers have increased
food grains production by more than three fold
since independence enabling Bangladesh to more
towards food security. Our economy has been able
to demonstrate impressive resilience in the face of
multiple global and financial crisis. Bangladeshs
track record in attaining key Millennium
Development Goals (MDGs) including in the areas
of poverty alleviation, gender parity, and access to
:.c | | -<|< <|| <<| - #<|
+ || |<|<< -|< <|| <<| -, <|
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c.- | =< -: | :. | |
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=| <|< <|| Asian Development
Outlook, October 2012-= |<<|| ||--| -| |<|
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--: |< < =<| < |< - |< -<|<
<||-< =| ||<=< | ||< -
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Directors Report
to the Shareholders
Bismillahir Rahmanir Rahim
Respected Shareholders
Assalamu Alaikum
On behalf of the Board of Directors, I am indeed
delighted to present before you the sixth Annual
Report of Agrani Bank Limited. The report
evaluates and analyzes banks overall operational
performance of 2012 compared to that of 2011. I
would request you to read the information and
analyses in conjunction with the audited financial
statements presented herewith. The report also
presents an overview of the global economic
scenario and the performance of Bangladesh
Economy to put in perspective the banks
performance.
Global Economic Scenario
Immediately after the recovery from economic
crisis in 2010, the global economy is again facing
challenges as the recession re-emerged in the first
half of FY 2011-12 due to sovereign debt crisis in
several euro-zone economies and economic
instability in the USA. However, steps taken to
reinvigorate the USA economy and joint efforts to
protect euro economies from further effect of
recession have slightly watered down the effect in
the second half of 2011. Despite some
deceleration in the growth of the developed
economies and slight slowdown in economic
growth of emerging and developing countries
compared to the growth momentum in 2011;
economic growth of emerging and developing
countries remains fairly strong.
According to World Economic Outlook (WEO),
October 2012 of IMF, despite that the world
economic growth slowed to 3.30 percent in 2012
from 3.80 percent in 2011, it is projected to rise to
3.60 percent in 2013. Growth of high income
countries would deteriorate further from 1.60
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health and education has received high global
acclaim.
These aforesaid achievements were possible
through a combination of factors: supportive
government policies and targeted resource
allocation; the hard work of farmers and workers at
home and abroad, contribution of the private
sector and our vibrant entrepreneurial class,
proactive role of our non-government actors
including in areas of disbursement of micro-credit,
development of micro-enterprises and raising
consciousness about economic and social issues;
target support provided by development partners.
Macroeconomic Scenario of Bangladesh
Economic Growth
Although the growth of Bangladesh economy
slowed down in the context of negative growth in
world trade at the beginning of the global financial
crisis in FY 2008-09, next year this growth
bounced back and average growth remained
above 6.00 percent in the last three years.
According to BBS, GDP grew to 6.71 percent in FY
2010-11 and the estimated GDP growth rate for FY
2011-12 is 6.32 percent. However, because of high
base effect induced by more than 5.00 percent
growth in agriculture sector during the last two
years, the growth of FY 2011-12 dipped a little
which is still satisfactory. Alongside, substantial
growth in industry and service sector has
contributed to overall GDP growth. In FY2011-12,
growth in agriculture, industry and service sectors
have estimated to 2.53 percent, 9.47 percent and
6.06 percent respectively. This year GDP and GNI
per capita stood at US$ 772 and US$ 848 which
were US$ 748 and US$ 816 respectively in the last
fiscal year.
Savings and Investment
Estimated domestic savings slightly increased
from 19.30 percent of GDP in FY 2010-11 to 19.40
percent of GDP in FY 2011-12. Investment in FY
2011-12 also showed similar feature with a slight
increase and stood at 25.40 percent of GDP in FY
2011-12 from 25.20 percent of GDP in FY2010-11.
Of which the share of private investment stood at
19.10 percent of GDP while that of public
investment was 6.30 percent in FY 2011-12. In FY
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2010-11, the private and the public sector investments
were 19.50 percent and 5.60 percent of GDP
respectively. Major initiatives of the Government
implemented in infrastructure sector including power
and reduction in cost of doing business helped create
investment-friendly environment. In addition to this,
because of satisfactory growth of remittances, national
savings in FY 2011-12 upturned to 29.40 percent of GDP
from 28.80 percent of GDP in the previous year.
Inflation
The 12 month average inflation rate reached to
10.62 percent in FY 2011-12 which was 8.80
percent in FY2010-11. Oil and food inflation in
global market and excessive credit flows to
unproductive sectors were mainly responsible for
this upturn. Inflation on point to point basis in June
2012 stood at 8.56 percent which was 10.49
percent in March 2011. From the trend analysis of
inflation in Bangladesh, it is clear that in the first
half of FY 2011- 2012 general inflation went up
because of food inflation. However, at the end of
FY2011-12, non-food inflation was the key factor in
pushing general inflation upward. At this point in
time, food inflation recorded to 7.08 (monthly rate,
point to point basis) percent from about 13.00
percent in the same month of FY2010-11.
Satisfactory food production and supply of
essential commodities including demand
management through Open Market Sale (OMS) of
the essential commodities and sufficient stock of
food grains contributed to the efforts of pulling
down food inflation. On the other hand, there was
a non-food inflationary pressure due to price hike
in international market, depreciation in exchange
rate and adjustment of oil price. In order to contain
inflation, the Government has undertaken
necessary steps by forging better coordination
between fiscal and monetary policies. Although
there was a pressure of oil price adjustment on
food price, it was transitory. It is expected that
actions like discouraging credit flows to
unproductive sector alongside adopting restrained
and effective monetary policy will reduce the
inflationary pressure.
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Fiscal Situation
Revenue Earning
A target for revenue receipt was set at Tk.1,18,385
crore (12.94 percent of GDP) in FY 2011-12 of
which NBR tax revenue accounted for Tk. 91,870
crore (10.00 percent of GDP), non-NBR revenue,
Tk. 3,915 crore (0.40 percent of GDP) and non-tax
revenue Tk. 22,600 crore (2.47 percent of GDP).
Against these targets, tax revenue from NBR
sources stood at Tk. 91,597 crore while revenue
receipts from non-NBR source and non-tax
revenue receipts were Tk. 3,633 crore and Tk.
18,550 core respectively in FY 2011-12. Total
revenue receipts increased by 19.53 percent from
Tk. 95,188 crore in FY 2010-11 to Tk. 1,13,781
crore in FY 2011-12.
Monetary and Financial Sector
Following the global financial crisis, monetary
policy stance was accommodative in FY2010-11
which has been adjusted in FY 2011-12 consistent
with the changes in the global and domestic
economic scenario. The monetary policy of FY
2011-12 was formulated to maintain a restrained
money supply and credit growth to manage the
pressure arising from a number of factors including
the lagged effect of high domestic credit growth in
the previous year, high inflation transmitted
through global price hike of essential commodities
including food items and huge borrowing from
banking system to meet government expenditure.
The restrained monetary policy was adopted to
ensure continued support for adequate credit flows
to the productive and priority sectors including
agriculture and SME, while controlling money
supply and credit to unproductive sectors. To
downturn the inflation into a tolerable level
Bangladesh Bank has re-fixed the policy rate of
REPO and reverse REPO at 7.75 percent and 5.75
percent respectively by raising 225 points on 4
occasions.
Interest Rate
There was a maximum cap of 7.00 percent interest
rate on export credit fixed since January 10, 2004
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to facilitate export earnings. Recently, the cap on
interest rate on lending in all sectors other than
pre-shipment export credit and agricultural loans
has been withdrawn. This has brought
competitiveness among banks in fixing rate of
interest on lending in a rational manner. Banks are
allowed to differentiate interest rate up to a
maximum of 3.00 percent considering comparative
risk elements involved among borrowers in the
same lending category which they would promptly
expose in their respective website and inform to
the Bangladesh Bank.
External Sector
Export
In the wake of the recovery from global financial
recession, the export trade of Bangladesh made a
turnaround. However, sovereign credit crisis in
eurozone which is one of Bangladeshs main
export destinations is having its impact on export
trade. The export earnings of Bangladesh stood at
US$ 24,288 million in FY 2011-12, which was 5.90
percent higher than the export earnings (US$
22,928 million) of FY 2010-11. Export earnings in
FY 2011-12 by major categories increased mainly
for footwear (30.10 percent), engineering products
(21.10 percent), woven garments (13.90 percent)
and leather (10.80 percent). On the other hand,
export earnings dipped in respect of raw jute
(-25.40 percent), ceramic product (-10.20 percent)
and jute goods (-7.50 percent). Some of the
facilities under the incentive package declared by
the Government are still continuing. Assistance for
the entrepreneurs tiled New Market Exploration
Assistance announced under the incentive
package is also being extended this year for
diversification of goods and exploration of new
export market. In the meantime, export markets
have been created in Japan, Korea, South Africa
and Turkey. Besides, due to reduction of duties by
India, Bangladeshi commodities are having gainful
access to India.
Import
The total import payments (C&F) stood at US$
35,516 million during FY 2011-12, which was 5.50
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percent higher than the import payments of US$
33,657 million of the preceding year. Although
import payments increased at the beginning of this
fiscal year due to price hike of fuel in the global
market and higher demand of fuel for electricity
generation, it slowed down towards the end of the
year as import of unimportant goods were
discouraged. Analyzing the category of imported
goods, it is observed that, import payments for
industrial raw materials, petroleum and petroleum
products increased by 22.75 percent, 11.15
percent and 21.76 percent respectively, while
import of capital machinery and primary
commodities decreased by 13.73 percent and
25.79 percent respectively.
Overseas Employment and Remittance
Although export of manpower slowed down in the
first half of FY 2010-11 because of the impact of
global recession, particularly on the real estate
markets in the Middle East, and on industrial
labour demand in some South East Asian
economies such as Malaysia, it began to increase
from January 2011. The amount of remittances
increased by 6.03 percent to US$ 11,650.32
million in FY 2010-11 compared to that of the
previous year. Bangladesh earned remittances of
US$ 12,843.40 million in FY 2011-12 which was
10.24 percent higher than the amount of the
previous year. The Government has undertaken
several initiatives including diplomatic approaches
to explore new markets. As many as 6.91 lakh
workers went abroad in quest of jobs in FY
2011-12, which was 57.40 percent higher than the
number stood at in the previous year. To begin
manpower export in full swing to Africa, East
Europe and Latin America, a number of diplomatic
initiatives have been undertaken alongside
establishing new labour wings in several countries.
There is also an attempt to impart training on
various trades to create skilled labour force to
meet the demand of labour markets abroad.
Balance of Payment
Trade balance recorded a rise in deficit by 3.20
percent to US$ 7,995 million in the FY 2011-12 as
compared to the deficit of US$ 7,744 million during
FY 2010-11. During this period, the current
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account balance recorded a surplus of US$ 1,630
million as compared to the surplus of US$ 885
million of FY 2010-11.The deficit recorded in the
overall balance of payment stood at US$ 494
million in FY 2011-12, which was US$ 656 million
in FY 2010-11.
Medium Term Prospect of Bangladesh Economy
In the current context of domestic and global
economic scenario, a Medium-Term
Macroeconomic Framework (MTMF) for FY
2012-2016 has been worked out based on some
fundamental assumptions. Just after the recovery of
the world economy from yearlong global recession
during 2008-09, devastating tsunami and
destruction of nuclear power plant in Japan, the
ongoing sovereign debt crisis in several eurozone
economies and continuing economic instability and
high unemployment in the USA, have slowed the
pace of the world economic growth significantly. As
a result, the global output decreased in 2011.
However, afterwards, an integrated policy and
strategies to overcome the eurozone crisis,
rebouncing of US economic growth and sustaining
the domestic demand in emerging and developing
economies, it was expected that global output
would increase in 2012.
Different macroeconomic indicators for the next
fiscal year and over the medium term have been
updated in view of continued satisfactory
performance in revenue collection, growth in
agriculture sector, investment in infrastructure
including power, exchange rate stability and
containment of inflationary pressure.
In the Medium Term Macroeconomic Framework,
real GDP growth has been estimated at 7.20
percent for FY 2012-13, 7.60 percent for FY
2013-14, 8.00 percent for FY 2014-15 and 9.10
percent for FY 2015-16 respectively. It is expected
that investment will increase from 25.40 percent of
GDP in FY 2011-12 to 33.70 percent in FY 2016-17
where private and public investment will stand at
25.20 percent and 8.50 percent respectively. On
the other hand, domestic savings is expected to
increase to 22.40 percent from 19.60 percent and
national savings will go up from 29.40 percent to
32.80 percent in the medium term.
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Development of agriculture sector including that of
power, energy and communication sectors are
crucial for achieving the desired growth of GDP.
Undertaking initiatives as envisaged in the
roadmap for power, exploring new gas deposits to
meet existing energy demand and utilising
renewable energy will ensure investment-friendly
environment in power and energy sector. It is also
expected that infrastructure deficit will be removed
by reinvigorating public-Private Partnership (PPP)
initiatives in the development of communication
sector and efficient and timely implementation of
Annual Development Program. In order to ensure
proper implementation of projects to be taken up
under PPP, a scheme has been worked out and a
set of policies and guidelines have been approved
by the Government.
In agriculture sector, there was a consistent and
positive growth over the last three years. Huge
government support such as subsidy, power
supply for irrigation, flow of agricultural credit,
innovation of new variety of salinity tolerant seed
and weather, and increasing assistance to
agro-based industries contributed significantly in
achieving sustainable growth in agriculture sector.
All these activities will continue which is expected
to support sustainable agricultural growth.
The estimated government expenditure stood at
16.50 percent of GDP in FY 2011-12 which is
expected to be 18.40 percent in FY 2012-13. The
target for FY 2016-17 has been set at 20.60
percent of GDP. Against this, expenditure on
Annual Development Programme is planned to be
increased from 3.90 percent of GDP in FY 2011-12
to 7.00 percent of GDP in FY 2016-17.
For financing the deficit, Government has planned
to reduce borrowing from the banking system. In
this regard, priority has been given to foreign
assistance which were committed and in pipe line.
For consecutive two years, Standard and Poors
(S&P) and Moodys retained the same sovereign
credit rating for Bangladesh. In their respective
lists rating for Bangladesh is BB- and Ba3.
According to this rating, in terms of credit
worthiness, Bangladesh is at par with the
Philippines, Indonesia and Vietnam. Such rating
will decrease the cost of debenture and import
payment and will help in attracting more foreign
investment.
G cew ARb me ne g~jZ we`yr I Rvjvwb, hvMvhvM
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Containing inflation is a big challenge for
macroeconomic stability. In MTMF, inflation has
forecasted to bring down at 7.50 percent in the
upcoming fiscal year and that is expected to bring
out almost 5.00 percent. It was expected that the
steps taken to increase food production,
uninterrupted food supply and enhance food
security would also be helpful in reining on
inflation. Bangladesh Bank in its monetary policy
statement has laid emphasis on limiting money
supply and discouraging credit flow to the
unproductive sectors. Side by side, emphasis is
also given to ensure credit flow to productive and
priority sectors including agriculture and SME
sectors.
Financial recession in eurozone economies, one of
the major export markets of Bangladesh, has
affected its export sector slowing it down to 6.20
percent in FY 2011-12. However, it has been
possible to tackle the crisis through integrated
efforts of euro countries. Besides, initiatives on
exploring new markets and diversification of export
goods have already contributed to our economy,
though to a limited extent.
The remittances from expatriate Bangladeshi
workers grew by 10.24 percent during this year
which has been estimated to be 12.00 percent for
next years. It is expected that concerted efforts on
exploring new labour markets and intensive
diplomatic initiatives will increase expatriate
employment and contribute towards sustaining the
existing trends of remittance of flows. The current
account balance (CAB) decreased but in MTMF it
is expected to bring back in a positive territory.
Pressures on exchange rate and foreign exchange
reserve have been offset due to adoption of
effective fiscal and monetary policy stances. Both
the exchange rate and reserve situation remained
stable at the end of FY 2011-12. The goal of
maintaining macroeconomic stability together with
expected GDP growth and target of inflation will be
achieved if the future shocks from domestic as well
as external sectors could be tackled properly.
Digital Bangladesh
Its true meaning lies in proper application of
technology to implement all the commitments of
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Kiv nqQ Zvi dj mU KvwUq DVv me ne ej Avkv
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|<|< << < | | -|, <|<<< <| <
gy`vbxwZi dj Zv wbimb Kiv me nqQ| 2011-12
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the government regarding education, health,
employment and poverty alleviation. The main
purpose of this idea is to improve the standards of
living of the people by empowering them, ensuring
transparency and accountability in all spheres of
life, establishing good-governance and, above all,
bringing public services to their doorsteps through
the most effective use of technology. In short,
Digital Bangladesh is a happy prosperous and
enlightened Bangladesh, which is free from
hunger, poverty, inequality and corruption and
belongs completely to its people and is driven
forward by digital technology.
Perspective Plan 2010-2021
The Government keeping in view the Golden
Jubilee of Independence has formulated
Bangladesh Perspective Planning 2010-2021,
in the light of Vision-2021 to attain a definite set of
objectives that relate to economic and social
development of Bangladesh. The document
reflects the hopes and aspirations of common
people which has been given the top priority and
incorporates the development philosophy of the
government, its longterm vision and strategic goals
of desired development. The fundamental
objective of this long term plan is to alleviate
poverty by achieving higher growth and to turn
Bangladesh into a medium income country where
poverty will be brought to the minimum and
regional disparity in the sphere of economic
development will be reduced significantly.
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cwZ cwiKbv 2010-2021
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68
percent in 2011 to 1.30 percent in 2012 but is
expected to rise to 1.50 percent in 2013. It has
been forecasted for eurozone to have sluggish
growth of -0.40 percent in 2012 which was 1.40
percent in 2011 and is expected to grow to 0.20
percent in 2013.
On the other hand, according to Asian
Development Outlook, October 2012, the dimming
global growth prospects and soft domestic
demand in the regions two largest economies are
slowing the pace of developing Asias expansion.
Growth was estimated to slide from 7.20 percent in
2011 to 6.10 percent in 2012, which was expected
to bounce back to register 6.70 percent growth in
2013.
Impressive Track Record of Bangladesh
Economy
Bangladeshs track record of achievements, in
different sectors and according to various
performance indicators, bear evidence that she is
making impressive and encouraging progress
towards attaining her goal of being a middle
income country by 2021. Bangladesh was able to
accelerate her GDP growth from under 4.00
percent per year to over 6.00 percent within a span
of two decades. Our country has been able to
make commendable transition from a
predominantly aid-dependent economy to a
trading nation. The combined net foreign
exchange earnings from export of goods and
remittance are at present about fifteen times more
than the aid we receive annually.
Bangladesh has established herself as the second
largest exporter of apparels in the world, after
China; our shipbuilding, footwear, pharmaceuticals
and other non-traditional exports are showing
encouraging signs. Our farmers have increased
food grains production by more than three fold
since independence enabling Bangladesh to more
towards food security. Our economy has been able
to demonstrate impressive resilience in the face of
multiple global and financial crisis. Bangladeshs
track record in attaining key Millennium
Development Goals (MDGs) including in the areas
of poverty alleviation, gender parity, and access to
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Directors Report
to the Shareholders
Bismillahir Rahmanir Rahim
Respected Shareholders
Assalamu Alaikum
On behalf of the Board of Directors, I am indeed
delighted to present before you the sixth Annual
Report of Agrani Bank Limited. The report
evaluates and analyzes banks overall operational
performance of 2012 compared to that of 2011. I
would request you to read the information and
analyses in conjunction with the audited financial
statements presented herewith. The report also
presents an overview of the global economic
scenario and the performance of Bangladesh
Economy to put in perspective the banks
performance.
Global Economic Scenario
Immediately after the recovery from economic
crisis in 2010, the global economy is again facing
challenges as the recession re-emerged in the first
half of FY 2011-12 due to sovereign debt crisis in
several euro-zone economies and economic
instability in the USA. However, steps taken to
reinvigorate the USA economy and joint efforts to
protect euro economies from further effect of
recession have slightly watered down the effect in
the second half of 2011. Despite some
deceleration in the growth of the developed
economies and slight slowdown in economic
growth of emerging and developing countries
compared to the growth momentum in 2011;
economic growth of emerging and developing
countries remains fairly strong.
According to World Economic Outlook (WEO),
October 2012 of IMF, despite that the world
economic growth slowed to 3.30 percent in 2012
from 3.80 percent in 2011, it is projected to rise to
3.60 percent in 2013. Growth of high income
countries would deteriorate further from 1.60
kqvinvvi`i cwZ
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debt) |< |<|< =< <<|< |< |<
< -| <||<|<< < | | -| | |<|
KvUvbv me nqQ| 2011 mvji wZxqva hyivi
<||< |*||< =< #<| +< <||< <|
g`vi cfve _K ivi Rb h mwwjZ cPv MnY Kiv
-, |< -|< |< |<| | -< |<
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health and education has received high global
acclaim.
These aforesaid achievements were possible
through a combination of factors: supportive
government policies and targeted resource
allocation; the hard work of farmers and workers at
home and abroad, contribution of the private
sector and our vibrant entrepreneurial class,
proactive role of our non-government actors
including in areas of disbursement of micro-credit,
development of micro-enterprises and raising
consciousness about economic and social issues;
target support provided by development partners.
Macroeconomic Scenario of Bangladesh
Economic Growth
Although the growth of Bangladesh economy
slowed down in the context of negative growth in
world trade at the beginning of the global financial
crisis in FY 2008-09, next year this growth
bounced back and average growth remained
above 6.00 percent in the last three years.
According to BBS, GDP grew to 6.71 percent in FY
2010-11 and the estimated GDP growth rate for FY
2011-12 is 6.32 percent. However, because of high
base effect induced by more than 5.00 percent
growth in agriculture sector during the last two
years, the growth of FY 2011-12 dipped a little
which is still satisfactory. Alongside, substantial
growth in industry and service sector has
contributed to overall GDP growth. In FY2011-12,
growth in agriculture, industry and service sectors
have estimated to 2.53 percent, 9.47 percent and
6.06 percent respectively. This year GDP and GNI
per capita stood at US$ 772 and US$ 848 which
were US$ 748 and US$ 816 respectively in the last
fiscal year.
Savings and Investment
Estimated domestic savings slightly increased
from 19.30 percent of GDP in FY 2010-11 to 19.40
percent of GDP in FY 2011-12. Investment in FY
2011-12 also showed similar feature with a slight
increase and stood at 25.40 percent of GDP in FY
2011-12 from 25.20 percent of GDP in FY2010-11.
Of which the share of private investment stood at
19.10 percent of GDP while that of public
investment was 6.30 percent in FY 2011-12. In FY
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2010-11, the private and the public sector investments
were 19.50 percent and 5.60 percent of GDP
respectively. Major initiatives of the Government
implemented in infrastructure sector including power
and reduction in cost of doing business helped create
investment-friendly environment. In addition to this,
because of satisfactory growth of remittances, national
savings in FY 2011-12 upturned to 29.40 percent of GDP
from 28.80 percent of GDP in the previous year.
Inflation
The 12 month average inflation rate reached to
10.62 percent in FY 2011-12 which was 8.80
percent in FY2010-11. Oil and food inflation in
global market and excessive credit flows to
unproductive sectors were mainly responsible for
this upturn. Inflation on point to point basis in June
2012 stood at 8.56 percent which was 10.49
percent in March 2011. From the trend analysis of
inflation in Bangladesh, it is clear that in the first
half of FY 2011- 2012 general inflation went up
because of food inflation. However, at the end of
FY2011-12, non-food inflation was the key factor in
pushing general inflation upward. At this point in
time, food inflation recorded to 7.08 (monthly rate,
point to point basis) percent from about 13.00
percent in the same month of FY2010-11.
Satisfactory food production and supply of
essential commodities including demand
management through Open Market Sale (OMS) of
the essential commodities and sufficient stock of
food grains contributed to the efforts of pulling
down food inflation. On the other hand, there was
a non-food inflationary pressure due to price hike
in international market, depreciation in exchange
rate and adjustment of oil price. In order to contain
inflation, the Government has undertaken
necessary steps by forging better coordination
between fiscal and monetary policies. Although
there was a pressure of oil price adjustment on
food price, it was transitory. It is expected that
actions like discouraging credit flows to
unproductive sector alongside adopting restrained
and effective monetary policy will reduce the
inflationary pressure.
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Fiscal Situation
Revenue Earning
A target for revenue receipt was set at Tk.1,18,385
crore (12.94 percent of GDP) in FY 2011-12 of
which NBR tax revenue accounted for Tk. 91,870
crore (10.00 percent of GDP), non-NBR revenue,
Tk. 3,915 crore (0.40 percent of GDP) and non-tax
revenue Tk. 22,600 crore (2.47 percent of GDP).
Against these targets, tax revenue from NBR
sources stood at Tk. 91,597 crore while revenue
receipts from non-NBR source and non-tax
revenue receipts were Tk. 3,633 crore and Tk.
18,550 core respectively in FY 2011-12. Total
revenue receipts increased by 19.53 percent from
Tk. 95,188 crore in FY 2010-11 to Tk. 1,13,781
crore in FY 2011-12.
Monetary and Financial Sector
Following the global financial crisis, monetary
policy stance was accommodative in FY2010-11
which has been adjusted in FY 2011-12 consistent
with the changes in the global and domestic
economic scenario. The monetary policy of FY
2011-12 was formulated to maintain a restrained
money supply and credit growth to manage the
pressure arising from a number of factors including
the lagged effect of high domestic credit growth in
the previous year, high inflation transmitted
through global price hike of essential commodities
including food items and huge borrowing from
banking system to meet government expenditure.
The restrained monetary policy was adopted to
ensure continued support for adequate credit flows
to the productive and priority sectors including
agriculture and SME, while controlling money
supply and credit to unproductive sectors. To
downturn the inflation into a tolerable level
Bangladesh Bank has re-fixed the policy rate of
REPO and reverse REPO at 7.75 percent and 5.75
percent respectively by raising 225 points on 4
occasions.
Interest Rate
There was a maximum cap of 7.00 percent interest
rate on export credit fixed since January 10, 2004
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gy`v I Avw_K LvZ
| <<< |<<| <|< < <| |<||<
| |<-|-<<| <| <||
<|| -||| (accomodative monetary
policy)- || |<< || - <<|
eQii AfixY FYi DP cewi wejw^Z cfve (lag
effect) |||< <||< |-- | || -<<
<|+< |< ||< =<<| <|+ =< <|-t|
e`wkK gy`vi wb Atcevni dj jb`b fvimvg
DZ Pvc ckgbi j 2011-12 gy`v bxwZ cYxZ nq|
-| || -| < <|| < < |-| <
< | < <|| |< |||| <|<,
z` I gvSvwi D`vM LvZmn Drcv`bkxj Ges AMvwaKvi
| < <| <|| ||+<<< << <|<|
<<| - ||< -| <| || ||<
<||- <|< | <<<< | <
|| - -|< <| =< |<| <| -'-| | :
<| <|+ << <<|= -.-c < c.-c |
t|<|< << , -:-:: <<<< ||
-< -|< | - -| --c <| <|+ <<| -
my`i nvi
||<< | |< <|< |<| <| | -
-|< (flexible interest rate) ||||< <|
to facilitate export earnings. Recently, the cap on
interest rate on lending in all sectors other than
pre-shipment export credit and agricultural loans
has been withdrawn. This has brought
competitiveness among banks in fixing rate of
interest on lending in a rational manner. Banks are
allowed to differentiate interest rate up to a
maximum of 3.00 percent considering comparative
risk elements involved among borrowers in the
same lending category which they would promptly
expose in their respective website and inform to
the Bangladesh Bank.
External Sector
Export
In the wake of the recovery from global financial
recession, the export trade of Bangladesh made a
turnaround. However, sovereign credit crisis in
eurozone which is one of Bangladeshs main
export destinations is having its impact on export
trade. The export earnings of Bangladesh stood at
US$ 24,288 million in FY 2011-12, which was 5.90
percent higher than the export earnings (US$
22,928 million) of FY 2010-11. Export earnings in
FY 2011-12 by major categories increased mainly
for footwear (30.10 percent), engineering products
(21.10 percent), woven garments (13.90 percent)
and leather (10.80 percent). On the other hand,
export earnings dipped in respect of raw jute
(-25.40 percent), ceramic product (-10.20 percent)
and jute goods (-7.50 percent). Some of the
facilities under the incentive package declared by
the Government are still continuing. Assistance for
the entrepreneurs tiled New Market Exploration
Assistance announced under the incentive
package is also being extended this year for
diversification of goods and exploration of new
export market. In the meantime, export markets
have been created in Japan, Korea, South Africa
and Turkey. Besides, due to reduction of duties by
India, Bangladeshi commodities are having gainful
access to India.
Import
The total import payments (C&F) stood at US$
35,516 million during FY 2011-12, which was 5.50
<|<|< |-< - -|< |<|<< | -|-
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|< ||< New Market Exploration Assistance
=< |<| -||-< <|< -|| -| <|-
< #|< <||< |-< ||, <||<|,
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percent higher than the import payments of US$
33,657 million of the preceding year. Although
import payments increased at the beginning of this
fiscal year due to price hike of fuel in the global
market and higher demand of fuel for electricity
generation, it slowed down towards the end of the
year as import of unimportant goods were
discouraged. Analyzing the category of imported
goods, it is observed that, import payments for
industrial raw materials, petroleum and petroleum
products increased by 22.75 percent, 11.15
percent and 21.76 percent respectively, while
import of capital machinery and primary
commodities decreased by 13.73 percent and
25.79 percent respectively.
Overseas Employment and Remittance
Although export of manpower slowed down in the
first half of FY 2010-11 because of the impact of
global recession, particularly on the real estate
markets in the Middle East, and on industrial
labour demand in some South East Asian
economies such as Malaysia, it began to increase
from January 2011. The amount of remittances
increased by 6.03 percent to US$ 11,650.32
million in FY 2010-11 compared to that of the
previous year. Bangladesh earned remittances of
US$ 12,843.40 million in FY 2011-12 which was
10.24 percent higher than the amount of the
previous year. The Government has undertaken
several initiatives including diplomatic approaches
to explore new markets. As many as 6.91 lakh
workers went abroad in quest of jobs in FY
2011-12, which was 57.40 percent higher than the
number stood at in the previous year. To begin
manpower export in full swing to Africa, East
Europe and Latin America, a number of diplomatic
initiatives have been undertaken alongside
establishing new labour wings in several countries.
There is also an attempt to impart training on
various trades to create skilled labour force to
meet the demand of labour markets abroad.
Balance of Payment
Trade balance recorded a rise in deficit by 3.20
percent to US$ 7,995 million in the FY 2011-12 as
compared to the deficit of US$ 7,744 million during
FY 2010-11. During this period, the current
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wbirmvwnZ Kivi dj mvcwZK mgq Avg`vwb cew
-| |-|| < << << -| <| <,
FYc wbwi wfwZ 2012 mb g~jabx hcvwZ Ges
| |-||< < -| <<|= :.-
| =< -c.-> | |-|| < <|+
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e`wkK Kgmsvb I iwgUv
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|||- <<| - <| ||--| -| |<|
<||- - | <|| |<| -| | =
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account balance recorded a surplus of US$ 1,630
million as compared to the surplus of US$ 885
million of FY 2010-11.The deficit recorded in the
overall balance of payment stood at US$ 494
million in FY 2011-12, which was US$ 656 million
in FY 2010-11.
Medium Term Prospect of Bangladesh Economy
In the current context of domestic and global
economic scenario, a Medium-Term
Macroeconomic Framework (MTMF) for FY
2012-2016 has been worked out based on some
fundamental assumptions. Just after the recovery of
the world economy from yearlong global recession
during 2008-09, devastating tsunami and
destruction of nuclear power plant in Japan, the
ongoing sovereign debt crisis in several eurozone
economies and continuing economic instability and
high unemployment in the USA, have slowed the
pace of the world economic growth significantly. As
a result, the global output decreased in 2011.
However, afterwards, an integrated policy and
strategies to overcome the eurozone crisis,
rebouncing of US economic growth and sustaining
the domestic demand in emerging and developing
economies, it was expected that global output
would increase in 2012.
Different macroeconomic indicators for the next
fiscal year and over the medium term have been
updated in view of continued satisfactory
performance in revenue collection, growth in
agriculture sector, investment in infrastructure
including power, exchange rate stability and
containment of inflationary pressure.
In the Medium Term Macroeconomic Framework,
real GDP growth has been estimated at 7.20
percent for FY 2012-13, 7.60 percent for FY
2013-14, 8.00 percent for FY 2014-15 and 9.10
percent for FY 2015-16 respectively. It is expected
that investment will increase from 25.40 percent of
GDP in FY 2011-12 to 33.70 percent in FY 2016-17
where private and public investment will stand at
25.20 percent and 8.50 percent respectively. On
the other hand, domestic savings is expected to
increase to 22.40 percent from 19.60 percent and
national savings will go up from 29.40 percent to
32.80 percent in the medium term.
| ||< |<, <| <<| <<< = |-|<
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|<
evsjv`ki A_bxwZi gagqv`x mvebv
-| <<| |<<| <|< < <| <|<
|<||< | <| ||- |< << ||
<< <|-| ||< <|< <|||, (Medium
Term Macroeconomic Framework- MTMF,
2012-16) <<| - ----> |<||
|<-| << <||< <+|<< < || <|<|
|<- || < |<||<< |<- <- |<<, #<|
+ |< |< <|| =< <<|<
|< |< < |<< |<| =<| -|< |-<
- -:: | <|< <|+ (global
output) < <| < #<| +< | <<
DiYi mwwjZ bxwZ Kkj MnY, hyivi A_bxwZZ
| |< || =< |<<|| < | <||< -
-< <| ||--| <||< |< <|<
-:- | |< <||< <|+ <|+ |< < || <<|
-
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Development of agriculture sector including that of
power, energy and communication sectors are
crucial for achieving the desired growth of GDP.
Undertaking initiatives as envisaged in the
roadmap for power, exploring new gas deposits to
meet existing energy demand and utilising
renewable energy will ensure investment-friendly
environment in power and energy sector. It is also
expected that infrastructure deficit will be removed
by reinvigorating public-Private Partnership (PPP)
initiatives in the development of communication
sector and efficient and timely implementation of
Annual Development Program. In order to ensure
proper implementation of projects to be taken up
under PPP, a scheme has been worked out and a
set of policies and guidelines have been approved
by the Government.
In agriculture sector, there was a consistent and
positive growth over the last three years. Huge
government support such as subsidy, power
supply for irrigation, flow of agricultural credit,
innovation of new variety of salinity tolerant seed
and weather, and increasing assistance to
agro-based industries contributed significantly in
achieving sustainable growth in agriculture sector.
All these activities will continue which is expected
to support sustainable agricultural growth.
The estimated government expenditure stood at
16.50 percent of GDP in FY 2011-12 which is
expected to be 18.40 percent in FY 2012-13. The
target for FY 2016-17 has been set at 20.60
percent of GDP. Against this, expenditure on
Annual Development Programme is planned to be
increased from 3.90 percent of GDP in FY 2011-12
to 7.00 percent of GDP in FY 2016-17.
For financing the deficit, Government has planned
to reduce borrowing from the banking system. In
this regard, priority has been given to foreign
assistance which were committed and in pipe line.
For consecutive two years, Standard and Poors
(S&P) and Moodys retained the same sovereign
credit rating for Bangladesh. In their respective
lists rating for Bangladesh is BB- and Ba3.
According to this rating, in terms of credit
worthiness, Bangladesh is at par with the
Philippines, Indonesia and Vietnam. Such rating
will decrease the cost of debenture and import
payment and will help in attracting more foreign
investment.
G cew ARb me ne g~jZ we`yr I Rvjvwb, hvMvhvM
<<||| =< <|< |< < |<| |<- |
<<|<< <<| <|| <|<= -, |||< ||--|
| < =< <|<| ||| <<-|<<
|< |<- < |||< ||--| < |<|| |<<<
|< < || <<| - <||<| |<
<<||<-<<<||< |-||< (|||) -|<
=| | =< =<#|< <||<< <|< <
<|<|< |< <<||| |
(infrastructure deficit) `~i Kiv me ne ej cZvkv
<<| - |||'< |<| |<< < < <r
- <<| -< |< <|<|< =<| <| -
=< |||| < |-|<| <<|< |- <<
<|< | | << <|+< <|<|<||-<| <| |
<|< | <# <|+ < <|< <<||<
-|| <- <| |< -|, < |<<|
|<- <<<|-, <|< < <|- <|+, |< |<-|<| <
jeYvZv mwnz exR Dveb Ges Kwl wfwK wki
|<<| -|| -| | <|< | <|+ |<<
chvq ivLv me nqQ| Kwl LvZ G Kvhgmg~n
|<<< <|- <|<< <| <|<| <# <|+ <|
<| |<| <|< < || <<| <|
<<||< < -::-:- <<<< ||< ||
(|||'< ::.c |) << -:--: <<<
|||'< :-.- | =< =| | -::-:-
<<< ||- |||'< -.: | | <<|<
|| |<|< <<| - =< < <||<<
<| < -::-:- <<<< |||'< .> |
<< -::-:- <<< |||'< -. | |<
|<<r| <
|| <| <|< <<| << - -|<
|<<r| < = |#|# <|<| |
<-|< -|| |$< <|<<< - - <
| |< -< |<<| <<|<< |<<|
<| , Standard & Poors (S & P) =<
Moodys <||-< << -'<< =<# |<
| <| ||<| < = <| ||<| S & P
=< Moodys <||-< BB- =< Ba 3 | -|
<< = <| <|| |<|<< ||<< |<
|<|< <||- |||#, #-||| < ||<
<| << =< <| =< <
< -| |< =< = |-|| < | -< -
<-|< |<||< |<| <|+ |<
Containing inflation is a big challenge for
macroeconomic stability. In MTMF, inflation has
forecasted to bring down at 7.50 percent in the
upcoming fiscal year and that is expected to bring
out almost 5.00 percent. It was expected that the
steps taken to increase food production,
uninterrupted food supply and enhance food
security would also be helpful in reining on
inflation. Bangladesh Bank in its monetary policy
statement has laid emphasis on limiting money
supply and discouraging credit flow to the
unproductive sectors. Side by side, emphasis is
also given to ensure credit flow to productive and
priority sectors including agriculture and SME
sectors.
Financial recession in eurozone economies, one of
the major export markets of Bangladesh, has
affected its export sector slowing it down to 6.20
percent in FY 2011-12. However, it has been
possible to tackle the crisis through integrated
efforts of euro countries. Besides, initiatives on
exploring new markets and diversification of export
goods have already contributed to our economy,
though to a limited extent.
The remittances from expatriate Bangladeshi
workers grew by 10.24 percent during this year
which has been estimated to be 12.00 percent for
next years. It is expected that concerted efforts on
exploring new labour markets and intensive
diplomatic initiatives will increase expatriate
employment and contribute towards sustaining the
existing trends of remittance of flows. The current
account balance (CAB) decreased but in MTMF it
is expected to bring back in a positive territory.
Pressures on exchange rate and foreign exchange
reserve have been offset due to adoption of
effective fiscal and monetary policy stances. Both
the exchange rate and reserve situation remained
stable at the end of FY 2011-12. The goal of
maintaining macroeconomic stability together with
expected GDP growth and target of inflation will be
achieved if the future shocks from domestic as well
as external sectors could be tackled properly.
Digital Bangladesh
Its true meaning lies in proper application of
technology to implement all the commitments of
<|+ < < |= -| ||<
| <|| MTMF-= ||| <<< ||< -|<
-| -.c | =< <|- | | c.
| <| ||< <|| <<| - ||
|< <| |- |- <|+ <<<|- <<|
||< <|| =< |- |<|| |<-|< <<|<
<<|<< -| <|<=- || | |<|
<|< < || <<| - -| || -| <
<|| < < |-| < < |
FYi hvMvb wbqYi cvkvcvwk Kwl, z` I gvSvwi
-| |- |-| =< ||<<|< | <
<| <|| ||+<<< << <|<| <<| -
<||-< <| <||<||< #<|| #|<
<||< <|< |< <|| |< <|+< <<
|<|< |< =< | -::-:- <<< :.-
| = < #<| < |<
`kjvi mwwjZ cqvm Ges G j h Kvhg MnY
Kiv nqQ Zvi dj mU KvwUq DVv me ne ej Avkv
<<| <| =|$|, <||< < < <||
<|<<< < <|<= -| | -| |<
|| <| -< -|
<||* <|-< <|+ | <<< :.-- |
-, <| <<| << - :-. | -|< <|+ |<
< <<| - <|- <|< -|<
|< <||< << | <-|<
<| <|+ < <||* <|-< <|<| <| <|< <
|| <<| - | |-|<< |<|< -|
< | <|< <| <|<< < MTMF-=
Kiv nqQ| mcwZ gy`vi wewbgq nvi I e`wkK gy`vi
|<|< << < | | -|, <|<<< <| <
gy`vbxwZi dj Zv wbimb Kiv me nqQ| 2011-12
<<< -|< |<|< -|<< |||| |< =
=< |<| |<||< ||| <| < <|<
<| < -|||< < <| < <|-t|<
|| |<|<| << ||< |||| <| <||-
KvwLZ cew ARb me ne ej Avkv Kiv hvq|
wWwRUvj evsjv`k
<|< |<< |< |< ||, | < -||<-
|<|- <<|<< < || << < =< <
the government regarding education, health,
employment and poverty alleviation. The main
purpose of this idea is to improve the standards of
living of the people by empowering them, ensuring
transparency and accountability in all spheres of
life, establishing good-governance and, above all,
bringing public services to their doorsteps through
the most effective use of technology. In short,
Digital Bangladesh is a happy prosperous and
enlightened Bangladesh, which is free from
hunger, poverty, inequality and corruption and
belongs completely to its people and is driven
forward by digital technology.
Perspective Plan 2010-2021
The Government keeping in view the Golden
Jubilee of Independence has formulated
Bangladesh Perspective Planning 2010-2021,
in the light of Vision-2021 to attain a definite set of
objectives that relate to economic and social
development of Bangladesh. The document
reflects the hopes and aspirations of common
people which has been given the top priority and
incorporates the development philosophy of the
government, its longterm vision and strategic goals
of desired development. The fundamental
objective of this long term plan is to alleviate
poverty by achieving higher growth and to turn
Bangladesh into a medium income country where
poverty will be brought to the minimum and
regional disparity in the sphere of economic
development will be reduced significantly.
< |<<| ||- ||| <||--<|<|< |
+ -| <|< |<< | << <
|< |< |-< |<<||< || <<|,
|< < | < -|<+| ||+ <<|,
| || <<| =< <||< < -|<|$|
< <| -| < , |||
<||- -| |-+ < |||< <||-, < -
-< < |<< <, <| <|, -||<-, | <
-|| <|<< | =< < - ||| <| |<
|< |< |-< =| <|<
cwZ cwiKbv 2010-2021
|<||< < |< | < <<|< '<||-
| |<<r| -:---:' |<< |<<r| -|
<< <||-< <|< < |||< <
||- < # <<r---: = |<<r|
-< <|| < < || -
<< ||< |<|<< ||-|<||< <|
||<<|< |- ||< -||-| - < <
| <<| - = -||-| <<r< |<
+ - < <|+ < |< -||<- |<|
=< --: |< < <||-< =<| < |<
`k cwiYZ Kiv hLvb `vwi` mewb chvq Aevb
<<< =< <|< |+|< << < <|<
Annual Report 2012 69
percent in 2011 to 1.30 percent in 2012 but is
expected to rise to 1.50 percent in 2013. It has
been forecasted for eurozone to have sluggish
growth of -0.40 percent in 2012 which was 1.40
percent in 2011 and is expected to grow to 0.20
percent in 2013.
On the other hand, according to Asian
Development Outlook, October 2012, the dimming
global growth prospects and soft domestic
demand in the regions two largest economies are
slowing the pace of developing Asias expansion.
Growth was estimated to slide from 7.20 percent in
2011 to 6.10 percent in 2012, which was expected
to bounce back to register 6.70 percent growth in
2013.
Impressive Track Record of Bangladesh
Economy
Bangladeshs track record of achievements, in
different sectors and according to various
performance indicators, bear evidence that she is
making impressive and encouraging progress
towards attaining her goal of being a middle
income country by 2021. Bangladesh was able to
accelerate her GDP growth from under 4.00
percent per year to over 6.00 percent within a span
of two decades. Our country has been able to
make commendable transition from a
predominantly aid-dependent economy to a
trading nation. The combined net foreign
exchange earnings from export of goods and
remittance are at present about fifteen times more
than the aid we receive annually.
Bangladesh has established herself as the second
largest exporter of apparels in the world, after
China; our shipbuilding, footwear, pharmaceuticals
and other non-traditional exports are showing
encouraging signs. Our farmers have increased
food grains production by more than three fold
since independence enabling Bangladesh to more
towards food security. Our economy has been able
to demonstrate impressive resilience in the face of
multiple global and financial crisis. Bangladeshs
track record in attaining key Millennium
Development Goals (MDGs) including in the areas
of poverty alleviation, gender parity, and access to
:.c | | -<|< <|| <<| - #<|
+ || |<|<< -|< <|| <<| -, <|
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-:: |< :.- | << -| -:- |
c.- | =< -: | :. | |
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=| <|< <|| Asian Development
Outlook, October 2012-= |<<|| ||--| -| |<|
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--: |< < =<| < |< - |< -<|<
<||-< =| ||<=< | ||< -
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Directors Report
to the Shareholders
Bismillahir Rahmanir Rahim
Respected Shareholders
Assalamu Alaikum
On behalf of the Board of Directors, I am indeed
delighted to present before you the sixth Annual
Report of Agrani Bank Limited. The report
evaluates and analyzes banks overall operational
performance of 2012 compared to that of 2011. I
would request you to read the information and
analyses in conjunction with the audited financial
statements presented herewith. The report also
presents an overview of the global economic
scenario and the performance of Bangladesh
Economy to put in perspective the banks
performance.
Global Economic Scenario
Immediately after the recovery from economic
crisis in 2010, the global economy is again facing
challenges as the recession re-emerged in the first
half of FY 2011-12 due to sovereign debt crisis in
several euro-zone economies and economic
instability in the USA. However, steps taken to
reinvigorate the USA economy and joint efforts to
protect euro economies from further effect of
recession have slightly watered down the effect in
the second half of 2011. Despite some
deceleration in the growth of the developed
economies and slight slowdown in economic
growth of emerging and developing countries
compared to the growth momentum in 2011;
economic growth of emerging and developing
countries remains fairly strong.
According to World Economic Outlook (WEO),
October 2012 of IMF, despite that the world
economic growth slowed to 3.30 percent in 2012
from 3.80 percent in 2011, it is projected to rise to
3.60 percent in 2013. Growth of high income
countries would deteriorate further from 1.60
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health and education has received high global
acclaim.
These aforesaid achievements were possible
through a combination of factors: supportive
government policies and targeted resource
allocation; the hard work of farmers and workers at
home and abroad, contribution of the private
sector and our vibrant entrepreneurial class,
proactive role of our non-government actors
including in areas of disbursement of micro-credit,
development of micro-enterprises and raising
consciousness about economic and social issues;
target support provided by development partners.
Macroeconomic Scenario of Bangladesh
Economic Growth
Although the growth of Bangladesh economy
slowed down in the context of negative growth in
world trade at the beginning of the global financial
crisis in FY 2008-09, next year this growth
bounced back and average growth remained
above 6.00 percent in the last three years.
According to BBS, GDP grew to 6.71 percent in FY
2010-11 and the estimated GDP growth rate for FY
2011-12 is 6.32 percent. However, because of high
base effect induced by more than 5.00 percent
growth in agriculture sector during the last two
years, the growth of FY 2011-12 dipped a little
which is still satisfactory. Alongside, substantial
growth in industry and service sector has
contributed to overall GDP growth. In FY2011-12,
growth in agriculture, industry and service sectors
have estimated to 2.53 percent, 9.47 percent and
6.06 percent respectively. This year GDP and GNI
per capita stood at US$ 772 and US$ 848 which
were US$ 748 and US$ 816 respectively in the last
fiscal year.
Savings and Investment
Estimated domestic savings slightly increased
from 19.30 percent of GDP in FY 2010-11 to 19.40
percent of GDP in FY 2011-12. Investment in FY
2011-12 also showed similar feature with a slight
increase and stood at 25.40 percent of GDP in FY
2011-12 from 25.20 percent of GDP in FY2010-11.
Of which the share of private investment stood at
19.10 percent of GDP while that of public
investment was 6.30 percent in FY 2011-12. In FY
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2010-11, the private and the public sector investments
were 19.50 percent and 5.60 percent of GDP
respectively. Major initiatives of the Government
implemented in infrastructure sector including power
and reduction in cost of doing business helped create
investment-friendly environment. In addition to this,
because of satisfactory growth of remittances, national
savings in FY 2011-12 upturned to 29.40 percent of GDP
from 28.80 percent of GDP in the previous year.
Inflation
The 12 month average inflation rate reached to
10.62 percent in FY 2011-12 which was 8.80
percent in FY2010-11. Oil and food inflation in
global market and excessive credit flows to
unproductive sectors were mainly responsible for
this upturn. Inflation on point to point basis in June
2012 stood at 8.56 percent which was 10.49
percent in March 2011. From the trend analysis of
inflation in Bangladesh, it is clear that in the first
half of FY 2011- 2012 general inflation went up
because of food inflation. However, at the end of
FY2011-12, non-food inflation was the key factor in
pushing general inflation upward. At this point in
time, food inflation recorded to 7.08 (monthly rate,
point to point basis) percent from about 13.00
percent in the same month of FY2010-11.
Satisfactory food production and supply of
essential commodities including demand
management through Open Market Sale (OMS) of
the essential commodities and sufficient stock of
food grains contributed to the efforts of pulling
down food inflation. On the other hand, there was
a non-food inflationary pressure due to price hike
in international market, depreciation in exchange
rate and adjustment of oil price. In order to contain
inflation, the Government has undertaken
necessary steps by forging better coordination
between fiscal and monetary policies. Although
there was a pressure of oil price adjustment on
food price, it was transitory. It is expected that
actions like discouraging credit flows to
unproductive sector alongside adopting restrained
and effective monetary policy will reduce the
inflationary pressure.
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Fiscal Situation
Revenue Earning
A target for revenue receipt was set at Tk.1,18,385
crore (12.94 percent of GDP) in FY 2011-12 of
which NBR tax revenue accounted for Tk. 91,870
crore (10.00 percent of GDP), non-NBR revenue,
Tk. 3,915 crore (0.40 percent of GDP) and non-tax
revenue Tk. 22,600 crore (2.47 percent of GDP).
Against these targets, tax revenue from NBR
sources stood at Tk. 91,597 crore while revenue
receipts from non-NBR source and non-tax
revenue receipts were Tk. 3,633 crore and Tk.
18,550 core respectively in FY 2011-12. Total
revenue receipts increased by 19.53 percent from
Tk. 95,188 crore in FY 2010-11 to Tk. 1,13,781
crore in FY 2011-12.
Monetary and Financial Sector
Following the global financial crisis, monetary
policy stance was accommodative in FY2010-11
which has been adjusted in FY 2011-12 consistent
with the changes in the global and domestic
economic scenario. The monetary policy of FY
2011-12 was formulated to maintain a restrained
money supply and credit growth to manage the
pressure arising from a number of factors including
the lagged effect of high domestic credit growth in
the previous year, high inflation transmitted
through global price hike of essential commodities
including food items and huge borrowing from
banking system to meet government expenditure.
The restrained monetary policy was adopted to
ensure continued support for adequate credit flows
to the productive and priority sectors including
agriculture and SME, while controlling money
supply and credit to unproductive sectors. To
downturn the inflation into a tolerable level
Bangladesh Bank has re-fixed the policy rate of
REPO and reverse REPO at 7.75 percent and 5.75
percent respectively by raising 225 points on 4
occasions.
Interest Rate
There was a maximum cap of 7.00 percent interest
rate on export credit fixed since January 10, 2004
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to facilitate export earnings. Recently, the cap on
interest rate on lending in all sectors other than
pre-shipment export credit and agricultural loans
has been withdrawn. This has brought
competitiveness among banks in fixing rate of
interest on lending in a rational manner. Banks are
allowed to differentiate interest rate up to a
maximum of 3.00 percent considering comparative
risk elements involved among borrowers in the
same lending category which they would promptly
expose in their respective website and inform to
the Bangladesh Bank.
External Sector
Export
In the wake of the recovery from global financial
recession, the export trade of Bangladesh made a
turnaround. However, sovereign credit crisis in
eurozone which is one of Bangladeshs main
export destinations is having its impact on export
trade. The export earnings of Bangladesh stood at
US$ 24,288 million in FY 2011-12, which was 5.90
percent higher than the export earnings (US$
22,928 million) of FY 2010-11. Export earnings in
FY 2011-12 by major categories increased mainly
for footwear (30.10 percent), engineering products
(21.10 percent), woven garments (13.90 percent)
and leather (10.80 percent). On the other hand,
export earnings dipped in respect of raw jute
(-25.40 percent), ceramic product (-10.20 percent)
and jute goods (-7.50 percent). Some of the
facilities under the incentive package declared by
the Government are still continuing. Assistance for
the entrepreneurs tiled New Market Exploration
Assistance announced under the incentive
package is also being extended this year for
diversification of goods and exploration of new
export market. In the meantime, export markets
have been created in Japan, Korea, South Africa
and Turkey. Besides, due to reduction of duties by
India, Bangladeshi commodities are having gainful
access to India.
Import
The total import payments (C&F) stood at US$
35,516 million during FY 2011-12, which was 5.50
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percent higher than the import payments of US$
33,657 million of the preceding year. Although
import payments increased at the beginning of this
fiscal year due to price hike of fuel in the global
market and higher demand of fuel for electricity
generation, it slowed down towards the end of the
year as import of unimportant goods were
discouraged. Analyzing the category of imported
goods, it is observed that, import payments for
industrial raw materials, petroleum and petroleum
products increased by 22.75 percent, 11.15
percent and 21.76 percent respectively, while
import of capital machinery and primary
commodities decreased by 13.73 percent and
25.79 percent respectively.
Overseas Employment and Remittance
Although export of manpower slowed down in the
first half of FY 2010-11 because of the impact of
global recession, particularly on the real estate
markets in the Middle East, and on industrial
labour demand in some South East Asian
economies such as Malaysia, it began to increase
from January 2011. The amount of remittances
increased by 6.03 percent to US$ 11,650.32
million in FY 2010-11 compared to that of the
previous year. Bangladesh earned remittances of
US$ 12,843.40 million in FY 2011-12 which was
10.24 percent higher than the amount of the
previous year. The Government has undertaken
several initiatives including diplomatic approaches
to explore new markets. As many as 6.91 lakh
workers went abroad in quest of jobs in FY
2011-12, which was 57.40 percent higher than the
number stood at in the previous year. To begin
manpower export in full swing to Africa, East
Europe and Latin America, a number of diplomatic
initiatives have been undertaken alongside
establishing new labour wings in several countries.
There is also an attempt to impart training on
various trades to create skilled labour force to
meet the demand of labour markets abroad.
Balance of Payment
Trade balance recorded a rise in deficit by 3.20
percent to US$ 7,995 million in the FY 2011-12 as
compared to the deficit of US$ 7,744 million during
FY 2010-11. During this period, the current
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account balance recorded a surplus of US$ 1,630
million as compared to the surplus of US$ 885
million of FY 2010-11.The deficit recorded in the
overall balance of payment stood at US$ 494
million in FY 2011-12, which was US$ 656 million
in FY 2010-11.
Medium Term Prospect of Bangladesh Economy
In the current context of domestic and global
economic scenario, a Medium-Term
Macroeconomic Framework (MTMF) for FY
2012-2016 has been worked out based on some
fundamental assumptions. Just after the recovery of
the world economy from yearlong global recession
during 2008-09, devastating tsunami and
destruction of nuclear power plant in Japan, the
ongoing sovereign debt crisis in several eurozone
economies and continuing economic instability and
high unemployment in the USA, have slowed the
pace of the world economic growth significantly. As
a result, the global output decreased in 2011.
However, afterwards, an integrated policy and
strategies to overcome the eurozone crisis,
rebouncing of US economic growth and sustaining
the domestic demand in emerging and developing
economies, it was expected that global output
would increase in 2012.
Different macroeconomic indicators for the next
fiscal year and over the medium term have been
updated in view of continued satisfactory
performance in revenue collection, growth in
agriculture sector, investment in infrastructure
including power, exchange rate stability and
containment of inflationary pressure.
In the Medium Term Macroeconomic Framework,
real GDP growth has been estimated at 7.20
percent for FY 2012-13, 7.60 percent for FY
2013-14, 8.00 percent for FY 2014-15 and 9.10
percent for FY 2015-16 respectively. It is expected
that investment will increase from 25.40 percent of
GDP in FY 2011-12 to 33.70 percent in FY 2016-17
where private and public investment will stand at
25.20 percent and 8.50 percent respectively. On
the other hand, domestic savings is expected to
increase to 22.40 percent from 19.60 percent and
national savings will go up from 29.40 percent to
32.80 percent in the medium term.
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Development of agriculture sector including that of
power, energy and communication sectors are
crucial for achieving the desired growth of GDP.
Undertaking initiatives as envisaged in the
roadmap for power, exploring new gas deposits to
meet existing energy demand and utilising
renewable energy will ensure investment-friendly
environment in power and energy sector. It is also
expected that infrastructure deficit will be removed
by reinvigorating public-Private Partnership (PPP)
initiatives in the development of communication
sector and efficient and timely implementation of
Annual Development Program. In order to ensure
proper implementation of projects to be taken up
under PPP, a scheme has been worked out and a
set of policies and guidelines have been approved
by the Government.
In agriculture sector, there was a consistent and
positive growth over the last three years. Huge
government support such as subsidy, power
supply for irrigation, flow of agricultural credit,
innovation of new variety of salinity tolerant seed
and weather, and increasing assistance to
agro-based industries contributed significantly in
achieving sustainable growth in agriculture sector.
All these activities will continue which is expected
to support sustainable agricultural growth.
The estimated government expenditure stood at
16.50 percent of GDP in FY 2011-12 which is
expected to be 18.40 percent in FY 2012-13. The
target for FY 2016-17 has been set at 20.60
percent of GDP. Against this, expenditure on
Annual Development Programme is planned to be
increased from 3.90 percent of GDP in FY 2011-12
to 7.00 percent of GDP in FY 2016-17.
For financing the deficit, Government has planned
to reduce borrowing from the banking system. In
this regard, priority has been given to foreign
assistance which were committed and in pipe line.
For consecutive two years, Standard and Poors
(S&P) and Moodys retained the same sovereign
credit rating for Bangladesh. In their respective
lists rating for Bangladesh is BB- and Ba3.
According to this rating, in terms of credit
worthiness, Bangladesh is at par with the
Philippines, Indonesia and Vietnam. Such rating
will decrease the cost of debenture and import
payment and will help in attracting more foreign
investment.
G cew ARb me ne g~jZ we`yr I Rvjvwb, hvMvhvM
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Containing inflation is a big challenge for
macroeconomic stability. In MTMF, inflation has
forecasted to bring down at 7.50 percent in the
upcoming fiscal year and that is expected to bring
out almost 5.00 percent. It was expected that the
steps taken to increase food production,
uninterrupted food supply and enhance food
security would also be helpful in reining on
inflation. Bangladesh Bank in its monetary policy
statement has laid emphasis on limiting money
supply and discouraging credit flow to the
unproductive sectors. Side by side, emphasis is
also given to ensure credit flow to productive and
priority sectors including agriculture and SME
sectors.
Financial recession in eurozone economies, one of
the major export markets of Bangladesh, has
affected its export sector slowing it down to 6.20
percent in FY 2011-12. However, it has been
possible to tackle the crisis through integrated
efforts of euro countries. Besides, initiatives on
exploring new markets and diversification of export
goods have already contributed to our economy,
though to a limited extent.
The remittances from expatriate Bangladeshi
workers grew by 10.24 percent during this year
which has been estimated to be 12.00 percent for
next years. It is expected that concerted efforts on
exploring new labour markets and intensive
diplomatic initiatives will increase expatriate
employment and contribute towards sustaining the
existing trends of remittance of flows. The current
account balance (CAB) decreased but in MTMF it
is expected to bring back in a positive territory.
Pressures on exchange rate and foreign exchange
reserve have been offset due to adoption of
effective fiscal and monetary policy stances. Both
the exchange rate and reserve situation remained
stable at the end of FY 2011-12. The goal of
maintaining macroeconomic stability together with
expected GDP growth and target of inflation will be
achieved if the future shocks from domestic as well
as external sectors could be tackled properly.
Digital Bangladesh
Its true meaning lies in proper application of
technology to implement all the commitments of
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Kiv nqQ Zvi dj mU KvwUq DVv me ne ej Avkv
<<| <| =|$|, <||< < < <||
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|<|< << < | | -|, <|<<< <| <
gy`vbxwZi dj Zv wbimb Kiv me nqQ| 2011-12
<<< -|< |<|< -|<< |||| |< =
=< |<| |<||< ||| <| < <|<
<| < -|||< < <| < <|-t|<
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the government regarding education, health,
employment and poverty alleviation. The main
purpose of this idea is to improve the standards of
living of the people by empowering them, ensuring
transparency and accountability in all spheres of
life, establishing good-governance and, above all,
bringing public services to their doorsteps through
the most effective use of technology. In short,
Digital Bangladesh is a happy prosperous and
enlightened Bangladesh, which is free from
hunger, poverty, inequality and corruption and
belongs completely to its people and is driven
forward by digital technology.
Perspective Plan 2010-2021
The Government keeping in view the Golden
Jubilee of Independence has formulated
Bangladesh Perspective Planning 2010-2021,
in the light of Vision-2021 to attain a definite set of
objectives that relate to economic and social
development of Bangladesh. The document
reflects the hopes and aspirations of common
people which has been given the top priority and
incorporates the development philosophy of the
government, its longterm vision and strategic goals
of desired development. The fundamental
objective of this long term plan is to alleviate
poverty by achieving higher growth and to turn
Bangladesh into a medium income country where
poverty will be brought to the minimum and
regional disparity in the sphere of economic
development will be reduced significantly.
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cwZ cwiKbv 2010-2021
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70
percent in 2011 to 1.30 percent in 2012 but is
expected to rise to 1.50 percent in 2013. It has
been forecasted for eurozone to have sluggish
growth of -0.40 percent in 2012 which was 1.40
percent in 2011 and is expected to grow to 0.20
percent in 2013.
On the other hand, according to Asian
Development Outlook, October 2012, the dimming
global growth prospects and soft domestic
demand in the regions two largest economies are
slowing the pace of developing Asias expansion.
Growth was estimated to slide from 7.20 percent in
2011 to 6.10 percent in 2012, which was expected
to bounce back to register 6.70 percent growth in
2013.
Impressive Track Record of Bangladesh
Economy
Bangladeshs track record of achievements, in
different sectors and according to various
performance indicators, bear evidence that she is
making impressive and encouraging progress
towards attaining her goal of being a middle
income country by 2021. Bangladesh was able to
accelerate her GDP growth from under 4.00
percent per year to over 6.00 percent within a span
of two decades. Our country has been able to
make commendable transition from a
predominantly aid-dependent economy to a
trading nation. The combined net foreign
exchange earnings from export of goods and
remittance are at present about fifteen times more
than the aid we receive annually.
Bangladesh has established herself as the second
largest exporter of apparels in the world, after
China; our shipbuilding, footwear, pharmaceuticals
and other non-traditional exports are showing
encouraging signs. Our farmers have increased
food grains production by more than three fold
since independence enabling Bangladesh to more
towards food security. Our economy has been able
to demonstrate impressive resilience in the face of
multiple global and financial crisis. Bangladeshs
track record in attaining key Millennium
Development Goals (MDGs) including in the areas
of poverty alleviation, gender parity, and access to
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Directors Report
to the Shareholders
Bismillahir Rahmanir Rahim
Respected Shareholders
Assalamu Alaikum
On behalf of the Board of Directors, I am indeed
delighted to present before you the sixth Annual
Report of Agrani Bank Limited. The report
evaluates and analyzes banks overall operational
performance of 2012 compared to that of 2011. I
would request you to read the information and
analyses in conjunction with the audited financial
statements presented herewith. The report also
presents an overview of the global economic
scenario and the performance of Bangladesh
Economy to put in perspective the banks
performance.
Global Economic Scenario
Immediately after the recovery from economic
crisis in 2010, the global economy is again facing
challenges as the recession re-emerged in the first
half of FY 2011-12 due to sovereign debt crisis in
several euro-zone economies and economic
instability in the USA. However, steps taken to
reinvigorate the USA economy and joint efforts to
protect euro economies from further effect of
recession have slightly watered down the effect in
the second half of 2011. Despite some
deceleration in the growth of the developed
economies and slight slowdown in economic
growth of emerging and developing countries
compared to the growth momentum in 2011;
economic growth of emerging and developing
countries remains fairly strong.
According to World Economic Outlook (WEO),
October 2012 of IMF, despite that the world
economic growth slowed to 3.30 percent in 2012
from 3.80 percent in 2011, it is projected to rise to
3.60 percent in 2013. Growth of high income
countries would deteriorate further from 1.60
kqvinvvi`i cwZ
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#<| +< <<| - |< (sovereign
debt) |< |<|< =< <<|< |< |<
< -| <||<|<< < | | -| | |<|
KvUvbv me nqQ| 2011 mvji wZxqva hyivi
<||< |*||< =< #<| +< <||< <|
g`vi cfve _K ivi Rb h mwwjZ cPv MnY Kiv
-, |< -|< |< |<| | -< |<
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health and education has received high global
acclaim.
These aforesaid achievements were possible
through a combination of factors: supportive
government policies and targeted resource
allocation; the hard work of farmers and workers at
home and abroad, contribution of the private
sector and our vibrant entrepreneurial class,
proactive role of our non-government actors
including in areas of disbursement of micro-credit,
development of micro-enterprises and raising
consciousness about economic and social issues;
target support provided by development partners.
Macroeconomic Scenario of Bangladesh
Economic Growth
Although the growth of Bangladesh economy
slowed down in the context of negative growth in
world trade at the beginning of the global financial
crisis in FY 2008-09, next year this growth
bounced back and average growth remained
above 6.00 percent in the last three years.
According to BBS, GDP grew to 6.71 percent in FY
2010-11 and the estimated GDP growth rate for FY
2011-12 is 6.32 percent. However, because of high
base effect induced by more than 5.00 percent
growth in agriculture sector during the last two
years, the growth of FY 2011-12 dipped a little
which is still satisfactory. Alongside, substantial
growth in industry and service sector has
contributed to overall GDP growth. In FY2011-12,
growth in agriculture, industry and service sectors
have estimated to 2.53 percent, 9.47 percent and
6.06 percent respectively. This year GDP and GNI
per capita stood at US$ 772 and US$ 848 which
were US$ 748 and US$ 816 respectively in the last
fiscal year.
Savings and Investment
Estimated domestic savings slightly increased
from 19.30 percent of GDP in FY 2010-11 to 19.40
percent of GDP in FY 2011-12. Investment in FY
2011-12 also showed similar feature with a slight
increase and stood at 25.40 percent of GDP in FY
2011-12 from 25.20 percent of GDP in FY2010-11.
Of which the share of private investment stood at
19.10 percent of GDP while that of public
investment was 6.30 percent in FY 2011-12. In FY
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2010-11, the private and the public sector investments
were 19.50 percent and 5.60 percent of GDP
respectively. Major initiatives of the Government
implemented in infrastructure sector including power
and reduction in cost of doing business helped create
investment-friendly environment. In addition to this,
because of satisfactory growth of remittances, national
savings in FY 2011-12 upturned to 29.40 percent of GDP
from 28.80 percent of GDP in the previous year.
Inflation
The 12 month average inflation rate reached to
10.62 percent in FY 2011-12 which was 8.80
percent in FY2010-11. Oil and food inflation in
global market and excessive credit flows to
unproductive sectors were mainly responsible for
this upturn. Inflation on point to point basis in June
2012 stood at 8.56 percent which was 10.49
percent in March 2011. From the trend analysis of
inflation in Bangladesh, it is clear that in the first
half of FY 2011- 2012 general inflation went up
because of food inflation. However, at the end of
FY2011-12, non-food inflation was the key factor in
pushing general inflation upward. At this point in
time, food inflation recorded to 7.08 (monthly rate,
point to point basis) percent from about 13.00
percent in the same month of FY2010-11.
Satisfactory food production and supply of
essential commodities including demand
management through Open Market Sale (OMS) of
the essential commodities and sufficient stock of
food grains contributed to the efforts of pulling
down food inflation. On the other hand, there was
a non-food inflationary pressure due to price hike
in international market, depreciation in exchange
rate and adjustment of oil price. In order to contain
inflation, the Government has undertaken
necessary steps by forging better coordination
between fiscal and monetary policies. Although
there was a pressure of oil price adjustment on
food price, it was transitory. It is expected that
actions like discouraging credit flows to
unproductive sector alongside adopting restrained
and effective monetary policy will reduce the
inflationary pressure.
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Fiscal Situation
Revenue Earning
A target for revenue receipt was set at Tk.1,18,385
crore (12.94 percent of GDP) in FY 2011-12 of
which NBR tax revenue accounted for Tk. 91,870
crore (10.00 percent of GDP), non-NBR revenue,
Tk. 3,915 crore (0.40 percent of GDP) and non-tax
revenue Tk. 22,600 crore (2.47 percent of GDP).
Against these targets, tax revenue from NBR
sources stood at Tk. 91,597 crore while revenue
receipts from non-NBR source and non-tax
revenue receipts were Tk. 3,633 crore and Tk.
18,550 core respectively in FY 2011-12. Total
revenue receipts increased by 19.53 percent from
Tk. 95,188 crore in FY 2010-11 to Tk. 1,13,781
crore in FY 2011-12.
Monetary and Financial Sector
Following the global financial crisis, monetary
policy stance was accommodative in FY2010-11
which has been adjusted in FY 2011-12 consistent
with the changes in the global and domestic
economic scenario. The monetary policy of FY
2011-12 was formulated to maintain a restrained
money supply and credit growth to manage the
pressure arising from a number of factors including
the lagged effect of high domestic credit growth in
the previous year, high inflation transmitted
through global price hike of essential commodities
including food items and huge borrowing from
banking system to meet government expenditure.
The restrained monetary policy was adopted to
ensure continued support for adequate credit flows
to the productive and priority sectors including
agriculture and SME, while controlling money
supply and credit to unproductive sectors. To
downturn the inflation into a tolerable level
Bangladesh Bank has re-fixed the policy rate of
REPO and reverse REPO at 7.75 percent and 5.75
percent respectively by raising 225 points on 4
occasions.
Interest Rate
There was a maximum cap of 7.00 percent interest
rate on export credit fixed since January 10, 2004
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gy`v I Avw_K LvZ
| <<< |<<| <|< < <| |<||<
| |<-|-<<| <| <||
<|| -||| (accomodative monetary
policy)- || |<< || - <<|
eQii AfixY FYi DP cewi wejw^Z cfve (lag
effect) |||< <||< |-- | || -<<
<|+< |< ||< =<<| <|+ =< <|-t|
e`wkK gy`vi wb Atcevni dj jb`b fvimvg
DZ Pvc ckgbi j 2011-12 gy`v bxwZ cYxZ nq|
-| || -| < <|| < < |-| <
< | < <|| |< |||| <|<,
z` I gvSvwi D`vM LvZmn Drcv`bkxj Ges AMvwaKvi
| < <| <|| ||+<<< << <|<|
<<| - ||< -| <| || ||<
<||- <|< | <<<< | <
|| - -|< <| =< |<| <| -'-| | :
<| <|+ << <<|= -.-c < c.-c |
t|<|< << , -:-:: <<<< ||
-< -|< | - -| --c <| <|+ <<| -
my`i nvi
||<< | |< <|< |<| <| | -
-|< (flexible interest rate) ||||< <|
to facilitate export earnings. Recently, the cap on
interest rate on lending in all sectors other than
pre-shipment export credit and agricultural loans
has been withdrawn. This has brought
competitiveness among banks in fixing rate of
interest on lending in a rational manner. Banks are
allowed to differentiate interest rate up to a
maximum of 3.00 percent considering comparative
risk elements involved among borrowers in the
same lending category which they would promptly
expose in their respective website and inform to
the Bangladesh Bank.
External Sector
Export
In the wake of the recovery from global financial
recession, the export trade of Bangladesh made a
turnaround. However, sovereign credit crisis in
eurozone which is one of Bangladeshs main
export destinations is having its impact on export
trade. The export earnings of Bangladesh stood at
US$ 24,288 million in FY 2011-12, which was 5.90
percent higher than the export earnings (US$
22,928 million) of FY 2010-11. Export earnings in
FY 2011-12 by major categories increased mainly
for footwear (30.10 percent), engineering products
(21.10 percent), woven garments (13.90 percent)
and leather (10.80 percent). On the other hand,
export earnings dipped in respect of raw jute
(-25.40 percent), ceramic product (-10.20 percent)
and jute goods (-7.50 percent). Some of the
facilities under the incentive package declared by
the Government are still continuing. Assistance for
the entrepreneurs tiled New Market Exploration
Assistance announced under the incentive
package is also being extended this year for
diversification of goods and exploration of new
export market. In the meantime, export markets
have been created in Japan, Korea, South Africa
and Turkey. Besides, due to reduction of duties by
India, Bangladeshi commodities are having gainful
access to India.
Import
The total import payments (C&F) stood at US$
35,516 million during FY 2011-12, which was 5.50
<|<|< |-< - -|< |<|<< | -|-
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=< |<| -||-< <|< -|| -| <|-
< #|< <||< |-< ||, <||<|,
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percent higher than the import payments of US$
33,657 million of the preceding year. Although
import payments increased at the beginning of this
fiscal year due to price hike of fuel in the global
market and higher demand of fuel for electricity
generation, it slowed down towards the end of the
year as import of unimportant goods were
discouraged. Analyzing the category of imported
goods, it is observed that, import payments for
industrial raw materials, petroleum and petroleum
products increased by 22.75 percent, 11.15
percent and 21.76 percent respectively, while
import of capital machinery and primary
commodities decreased by 13.73 percent and
25.79 percent respectively.
Overseas Employment and Remittance
Although export of manpower slowed down in the
first half of FY 2010-11 because of the impact of
global recession, particularly on the real estate
markets in the Middle East, and on industrial
labour demand in some South East Asian
economies such as Malaysia, it began to increase
from January 2011. The amount of remittances
increased by 6.03 percent to US$ 11,650.32
million in FY 2010-11 compared to that of the
previous year. Bangladesh earned remittances of
US$ 12,843.40 million in FY 2011-12 which was
10.24 percent higher than the amount of the
previous year. The Government has undertaken
several initiatives including diplomatic approaches
to explore new markets. As many as 6.91 lakh
workers went abroad in quest of jobs in FY
2011-12, which was 57.40 percent higher than the
number stood at in the previous year. To begin
manpower export in full swing to Africa, East
Europe and Latin America, a number of diplomatic
initiatives have been undertaken alongside
establishing new labour wings in several countries.
There is also an attempt to impart training on
various trades to create skilled labour force to
meet the demand of labour markets abroad.
Balance of Payment
Trade balance recorded a rise in deficit by 3.20
percent to US$ 7,995 million in the FY 2011-12 as
compared to the deficit of US$ 7,744 million during
FY 2010-11. During this period, the current
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wbirmvwnZ Kivi dj mvcwZK mgq Avg`vwb cew
-| |-|| < << << -| <| <,
FYc wbwi wfwZ 2012 mb g~jabx hcvwZ Ges
| |-||< < -| <<|= :.-
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|||- <<| - <| ||--| -| |<|
<||- - | <|| |<| -| | =
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account balance recorded a surplus of US$ 1,630
million as compared to the surplus of US$ 885
million of FY 2010-11.The deficit recorded in the
overall balance of payment stood at US$ 494
million in FY 2011-12, which was US$ 656 million
in FY 2010-11.
Medium Term Prospect of Bangladesh Economy
In the current context of domestic and global
economic scenario, a Medium-Term
Macroeconomic Framework (MTMF) for FY
2012-2016 has been worked out based on some
fundamental assumptions. Just after the recovery of
the world economy from yearlong global recession
during 2008-09, devastating tsunami and
destruction of nuclear power plant in Japan, the
ongoing sovereign debt crisis in several eurozone
economies and continuing economic instability and
high unemployment in the USA, have slowed the
pace of the world economic growth significantly. As
a result, the global output decreased in 2011.
However, afterwards, an integrated policy and
strategies to overcome the eurozone crisis,
rebouncing of US economic growth and sustaining
the domestic demand in emerging and developing
economies, it was expected that global output
would increase in 2012.
Different macroeconomic indicators for the next
fiscal year and over the medium term have been
updated in view of continued satisfactory
performance in revenue collection, growth in
agriculture sector, investment in infrastructure
including power, exchange rate stability and
containment of inflationary pressure.
In the Medium Term Macroeconomic Framework,
real GDP growth has been estimated at 7.20
percent for FY 2012-13, 7.60 percent for FY
2013-14, 8.00 percent for FY 2014-15 and 9.10
percent for FY 2015-16 respectively. It is expected
that investment will increase from 25.40 percent of
GDP in FY 2011-12 to 33.70 percent in FY 2016-17
where private and public investment will stand at
25.20 percent and 8.50 percent respectively. On
the other hand, domestic savings is expected to
increase to 22.40 percent from 19.60 percent and
national savings will go up from 29.40 percent to
32.80 percent in the medium term.
| ||< |<, <| <<| <<< = |-|<
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|<
evsjv`ki A_bxwZi gagqv`x mvebv
-| <<| |<<| <|< < <| <|<
|<||< | <| ||- |< << ||
<< <|-| ||< <|< <|||, (Medium
Term Macroeconomic Framework- MTMF,
2012-16) <<| - ----> |<||
|<-| << <||< <+|<< < || <|<|
|<- || < |<||<< |<- <- |<<, #<|
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|< |< < |<< |<| =<| -|< |-<
- -:: | <|< <|+ (global
output) < <| < #<| +< | <<
DiYi mwwjZ bxwZ Kkj MnY, hyivi A_bxwZZ
| |< || =< |<<|| < | <||< -
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-
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Development of agriculture sector including that of
power, energy and communication sectors are
crucial for achieving the desired growth of GDP.
Undertaking initiatives as envisaged in the
roadmap for power, exploring new gas deposits to
meet existing energy demand and utilising
renewable energy will ensure investment-friendly
environment in power and energy sector. It is also
expected that infrastructure deficit will be removed
by reinvigorating public-Private Partnership (PPP)
initiatives in the development of communication
sector and efficient and timely implementation of
Annual Development Program. In order to ensure
proper implementation of projects to be taken up
under PPP, a scheme has been worked out and a
set of policies and guidelines have been approved
by the Government.
In agriculture sector, there was a consistent and
positive growth over the last three years. Huge
government support such as subsidy, power
supply for irrigation, flow of agricultural credit,
innovation of new variety of salinity tolerant seed
and weather, and increasing assistance to
agro-based industries contributed significantly in
achieving sustainable growth in agriculture sector.
All these activities will continue which is expected
to support sustainable agricultural growth.
The estimated government expenditure stood at
16.50 percent of GDP in FY 2011-12 which is
expected to be 18.40 percent in FY 2012-13. The
target for FY 2016-17 has been set at 20.60
percent of GDP. Against this, expenditure on
Annual Development Programme is planned to be
increased from 3.90 percent of GDP in FY 2011-12
to 7.00 percent of GDP in FY 2016-17.
For financing the deficit, Government has planned
to reduce borrowing from the banking system. In
this regard, priority has been given to foreign
assistance which were committed and in pipe line.
For consecutive two years, Standard and Poors
(S&P) and Moodys retained the same sovereign
credit rating for Bangladesh. In their respective
lists rating for Bangladesh is BB- and Ba3.
According to this rating, in terms of credit
worthiness, Bangladesh is at par with the
Philippines, Indonesia and Vietnam. Such rating
will decrease the cost of debenture and import
payment and will help in attracting more foreign
investment.
G cew ARb me ne g~jZ we`yr I Rvjvwb, hvMvhvM
<<||| =< <|< |< < |<| |<- |
<<|<< <<| <|| <|<= -, |||< ||--|
| < =< <|<| ||| <<-|<<
|< |<- < |||< ||--| < |<|| |<<<
|< < || <<| - <||<| |<
<<||<-<<<||< |-||< (|||) -|<
=| | =< =<#|< <||<< <|< <
<|<|< |< <<||| |
(infrastructure deficit) `~i Kiv me ne ej cZvkv
<<| - |||'< |<| |<< < < <r
- <<| -< |< <|<|< =<| <| -
=< |||| < |-|<| <<|< |- <<
<|< | | << <|+< <|<|<||-<| <| |
<|< | <# <|+ < <|< <<||<
-|| <- <| |< -|, < |<<|
|<- <<<|-, <|< < <|- <|+, |< |<-|<| <
jeYvZv mwnz exR Dveb Ges Kwl wfwK wki
|<<| -|| -| | <|< | <|+ |<<
chvq ivLv me nqQ| Kwl LvZ G Kvhgmg~n
|<<< <|- <|<< <| <|<| <# <|+ <|
<| |<| <|< < || <<| <|
<<||< < -::-:- <<<< ||< ||
(|||'< ::.c |) << -:--: <<<
|||'< :-.- | =< =| | -::-:-
<<< ||- |||'< -.: | | <<|<
|| |<|< <<| - =< < <||<<
<| < -::-:- <<<< |||'< .> |
<< -::-:- <<< |||'< -. | |<
|<<r| <
|| <| <|< <<| << - -|<
|<<r| < = |#|# <|<| |
<-|< -|| |$< <|<<< - - <
| |< -< |<<| <<|<< |<<|
<| , Standard & Poors (S & P) =<
Moodys <||-< << -'<< =<# |<
| <| ||<| < = <| ||<| S & P
=< Moodys <||-< BB- =< Ba 3 | -|
<< = <| <|| |<|<< ||<< |<
|<|< <||- |||#, #-||| < ||<
<| << =< <| =< <
< -| |< =< = |-|| < | -< -
<-|< |<||< |<| <|+ |<
Containing inflation is a big challenge for
macroeconomic stability. In MTMF, inflation has
forecasted to bring down at 7.50 percent in the
upcoming fiscal year and that is expected to bring
out almost 5.00 percent. It was expected that the
steps taken to increase food production,
uninterrupted food supply and enhance food
security would also be helpful in reining on
inflation. Bangladesh Bank in its monetary policy
statement has laid emphasis on limiting money
supply and discouraging credit flow to the
unproductive sectors. Side by side, emphasis is
also given to ensure credit flow to productive and
priority sectors including agriculture and SME
sectors.
Financial recession in eurozone economies, one of
the major export markets of Bangladesh, has
affected its export sector slowing it down to 6.20
percent in FY 2011-12. However, it has been
possible to tackle the crisis through integrated
efforts of euro countries. Besides, initiatives on
exploring new markets and diversification of export
goods have already contributed to our economy,
though to a limited extent.
The remittances from expatriate Bangladeshi
workers grew by 10.24 percent during this year
which has been estimated to be 12.00 percent for
next years. It is expected that concerted efforts on
exploring new labour markets and intensive
diplomatic initiatives will increase expatriate
employment and contribute towards sustaining the
existing trends of remittance of flows. The current
account balance (CAB) decreased but in MTMF it
is expected to bring back in a positive territory.
Pressures on exchange rate and foreign exchange
reserve have been offset due to adoption of
effective fiscal and monetary policy stances. Both
the exchange rate and reserve situation remained
stable at the end of FY 2011-12. The goal of
maintaining macroeconomic stability together with
expected GDP growth and target of inflation will be
achieved if the future shocks from domestic as well
as external sectors could be tackled properly.
Digital Bangladesh
Its true meaning lies in proper application of
technology to implement all the commitments of
<|+ < < |= -| ||<
| <|| MTMF-= ||| <<< ||< -|<
-| -.c | =< <|- | | c.
| <| ||< <|| <<| - ||
|< <| |- |- <|+ <<<|- <<|
||< <|| =< |- |<|| |<-|< <<|<
<<|<< -| <|<=- || | |<|
<|< < || <<| - -| || -| <
<|| < < |-| < < |
FYi hvMvb wbqYi cvkvcvwk Kwl, z` I gvSvwi
-| |- |-| =< ||<<|< | <
<| <|| ||+<<< << <|<| <<| -
<||-< <| <||<||< #<|| #|<
<||< <|< |< <|| |< <|+< <<
|<|< |< =< | -::-:- <<< :.-
| = < #<| < |<
`kjvi mwwjZ cqvm Ges G j h Kvhg MnY
Kiv nqQ Zvi dj mU KvwUq DVv me ne ej Avkv
<<| <| =|$|, <||< < < <||
<|<<< < <|<= -| | -| |<
|| <| -< -|
<||* <|-< <|+ | <<< :.-- |
-, <| <<| << - :-. | -|< <|+ |<
< <<| - <|- <|< -|<
|< <||< << | <-|<
<| <|+ < <||* <|-< <|<| <| <|< <
|| <<| - | |-|<< |<|< -|
< | <|< <| <|<< < MTMF-=
Kiv nqQ| mcwZ gy`vi wewbgq nvi I e`wkK gy`vi
|<|< << < | | -|, <|<<< <| <
gy`vbxwZi dj Zv wbimb Kiv me nqQ| 2011-12
<<< -|< |<|< -|<< |||| |< =
=< |<| |<||< ||| <| < <|<
<| < -|||< < <| < <|-t|<
|| |<|<| << ||< |||| <| <||-
KvwLZ cew ARb me ne ej Avkv Kiv hvq|
wWwRUvj evsjv`k
<|< |<< |< |< ||, | < -||<-
|<|- <<|<< < || << < =< <
the government regarding education, health,
employment and poverty alleviation. The main
purpose of this idea is to improve the standards of
living of the people by empowering them, ensuring
transparency and accountability in all spheres of
life, establishing good-governance and, above all,
bringing public services to their doorsteps through
the most effective use of technology. In short,
Digital Bangladesh is a happy prosperous and
enlightened Bangladesh, which is free from
hunger, poverty, inequality and corruption and
belongs completely to its people and is driven
forward by digital technology.
Perspective Plan 2010-2021
The Government keeping in view the Golden
Jubilee of Independence has formulated
Bangladesh Perspective Planning 2010-2021,
in the light of Vision-2021 to attain a definite set of
objectives that relate to economic and social
development of Bangladesh. The document
reflects the hopes and aspirations of common
people which has been given the top priority and
incorporates the development philosophy of the
government, its longterm vision and strategic goals
of desired development. The fundamental
objective of this long term plan is to alleviate
poverty by achieving higher growth and to turn
Bangladesh into a medium income country where
poverty will be brought to the minimum and
regional disparity in the sphere of economic
development will be reduced significantly.
< |<<| ||- ||| <||--<|<|< |
+ -| <|< |<< | << <
|< |< |-< |<<||< || <<|,
|< < | < -|<+| ||+ <<|,
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<||- -| |-+ < |||< <||-, < -
-< < |<< <, <| <|, -||<-, | <
-|| <|<< | =< < - ||| <| |<
|< |< |-< =| <|<
cwZ cwiKbv 2010-2021
|<||< < |< | < <<|< '<||-
| |<<r| -:---:' |<< |<<r| -|
<< <||-< <|< < |||< <
||- < # <<r---: = |<<r|
-< <|| < < || -
<< ||< |<|<< ||-|<||< <|
||<<|< |- ||< -||-| - < <
| <<| - = -||-| <<r< |<
+ - < <|+ < |< -||<- |<|
=< --: |< < <||-< =<| < |<
`k cwiYZ Kiv hLvb `vwi` mewb chvq Aevb
<<< =< <|< |+|< << < <|<
Annual Report 2012 71
percent in 2011 to 1.30 percent in 2012 but is
expected to rise to 1.50 percent in 2013. It has
been forecasted for eurozone to have sluggish
growth of -0.40 percent in 2012 which was 1.40
percent in 2011 and is expected to grow to 0.20
percent in 2013.
On the other hand, according to Asian
Development Outlook, October 2012, the dimming
global growth prospects and soft domestic
demand in the regions two largest economies are
slowing the pace of developing Asias expansion.
Growth was estimated to slide from 7.20 percent in
2011 to 6.10 percent in 2012, which was expected
to bounce back to register 6.70 percent growth in
2013.
Impressive Track Record of Bangladesh
Economy
Bangladeshs track record of achievements, in
different sectors and according to various
performance indicators, bear evidence that she is
making impressive and encouraging progress
towards attaining her goal of being a middle
income country by 2021. Bangladesh was able to
accelerate her GDP growth from under 4.00
percent per year to over 6.00 percent within a span
of two decades. Our country has been able to
make commendable transition from a
predominantly aid-dependent economy to a
trading nation. The combined net foreign
exchange earnings from export of goods and
remittance are at present about fifteen times more
than the aid we receive annually.
Bangladesh has established herself as the second
largest exporter of apparels in the world, after
China; our shipbuilding, footwear, pharmaceuticals
and other non-traditional exports are showing
encouraging signs. Our farmers have increased
food grains production by more than three fold
since independence enabling Bangladesh to more
towards food security. Our economy has been able
to demonstrate impressive resilience in the face of
multiple global and financial crisis. Bangladeshs
track record in attaining key Millennium
Development Goals (MDGs) including in the areas
of poverty alleviation, gender parity, and access to
:.c | | -<|< <|| <<| - #<|
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Outlook, October 2012-= |<<|| ||--| -| |<|
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--: |< < =<| < |< - |< -<|<
<||-< =| ||<=< | ||< -
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Directors Report
to the Shareholders
Bismillahir Rahmanir Rahim
Respected Shareholders
Assalamu Alaikum
On behalf of the Board of Directors, I am indeed
delighted to present before you the sixth Annual
Report of Agrani Bank Limited. The report
evaluates and analyzes banks overall operational
performance of 2012 compared to that of 2011. I
would request you to read the information and
analyses in conjunction with the audited financial
statements presented herewith. The report also
presents an overview of the global economic
scenario and the performance of Bangladesh
Economy to put in perspective the banks
performance.
Global Economic Scenario
Immediately after the recovery from economic
crisis in 2010, the global economy is again facing
challenges as the recession re-emerged in the first
half of FY 2011-12 due to sovereign debt crisis in
several euro-zone economies and economic
instability in the USA. However, steps taken to
reinvigorate the USA economy and joint efforts to
protect euro economies from further effect of
recession have slightly watered down the effect in
the second half of 2011. Despite some
deceleration in the growth of the developed
economies and slight slowdown in economic
growth of emerging and developing countries
compared to the growth momentum in 2011;
economic growth of emerging and developing
countries remains fairly strong.
According to World Economic Outlook (WEO),
October 2012 of IMF, despite that the world
economic growth slowed to 3.30 percent in 2012
from 3.80 percent in 2011, it is projected to rise to
3.60 percent in 2013. Growth of high income
countries would deteriorate further from 1.60
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health and education has received high global
acclaim.
These aforesaid achievements were possible
through a combination of factors: supportive
government policies and targeted resource
allocation; the hard work of farmers and workers at
home and abroad, contribution of the private
sector and our vibrant entrepreneurial class,
proactive role of our non-government actors
including in areas of disbursement of micro-credit,
development of micro-enterprises and raising
consciousness about economic and social issues;
target support provided by development partners.
Macroeconomic Scenario of Bangladesh
Economic Growth
Although the growth of Bangladesh economy
slowed down in the context of negative growth in
world trade at the beginning of the global financial
crisis in FY 2008-09, next year this growth
bounced back and average growth remained
above 6.00 percent in the last three years.
According to BBS, GDP grew to 6.71 percent in FY
2010-11 and the estimated GDP growth rate for FY
2011-12 is 6.32 percent. However, because of high
base effect induced by more than 5.00 percent
growth in agriculture sector during the last two
years, the growth of FY 2011-12 dipped a little
which is still satisfactory. Alongside, substantial
growth in industry and service sector has
contributed to overall GDP growth. In FY2011-12,
growth in agriculture, industry and service sectors
have estimated to 2.53 percent, 9.47 percent and
6.06 percent respectively. This year GDP and GNI
per capita stood at US$ 772 and US$ 848 which
were US$ 748 and US$ 816 respectively in the last
fiscal year.
Savings and Investment
Estimated domestic savings slightly increased
from 19.30 percent of GDP in FY 2010-11 to 19.40
percent of GDP in FY 2011-12. Investment in FY
2011-12 also showed similar feature with a slight
increase and stood at 25.40 percent of GDP in FY
2011-12 from 25.20 percent of GDP in FY2010-11.
Of which the share of private investment stood at
19.10 percent of GDP while that of public
investment was 6.30 percent in FY 2011-12. In FY
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2010-11, the private and the public sector investments
were 19.50 percent and 5.60 percent of GDP
respectively. Major initiatives of the Government
implemented in infrastructure sector including power
and reduction in cost of doing business helped create
investment-friendly environment. In addition to this,
because of satisfactory growth of remittances, national
savings in FY 2011-12 upturned to 29.40 percent of GDP
from 28.80 percent of GDP in the previous year.
Inflation
The 12 month average inflation rate reached to
10.62 percent in FY 2011-12 which was 8.80
percent in FY2010-11. Oil and food inflation in
global market and excessive credit flows to
unproductive sectors were mainly responsible for
this upturn. Inflation on point to point basis in June
2012 stood at 8.56 percent which was 10.49
percent in March 2011. From the trend analysis of
inflation in Bangladesh, it is clear that in the first
half of FY 2011- 2012 general inflation went up
because of food inflation. However, at the end of
FY2011-12, non-food inflation was the key factor in
pushing general inflation upward. At this point in
time, food inflation recorded to 7.08 (monthly rate,
point to point basis) percent from about 13.00
percent in the same month of FY2010-11.
Satisfactory food production and supply of
essential commodities including demand
management through Open Market Sale (OMS) of
the essential commodities and sufficient stock of
food grains contributed to the efforts of pulling
down food inflation. On the other hand, there was
a non-food inflationary pressure due to price hike
in international market, depreciation in exchange
rate and adjustment of oil price. In order to contain
inflation, the Government has undertaken
necessary steps by forging better coordination
between fiscal and monetary policies. Although
there was a pressure of oil price adjustment on
food price, it was transitory. It is expected that
actions like discouraging credit flows to
unproductive sector alongside adopting restrained
and effective monetary policy will reduce the
inflationary pressure.
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Fiscal Situation
Revenue Earning
A target for revenue receipt was set at Tk.1,18,385
crore (12.94 percent of GDP) in FY 2011-12 of
which NBR tax revenue accounted for Tk. 91,870
crore (10.00 percent of GDP), non-NBR revenue,
Tk. 3,915 crore (0.40 percent of GDP) and non-tax
revenue Tk. 22,600 crore (2.47 percent of GDP).
Against these targets, tax revenue from NBR
sources stood at Tk. 91,597 crore while revenue
receipts from non-NBR source and non-tax
revenue receipts were Tk. 3,633 crore and Tk.
18,550 core respectively in FY 2011-12. Total
revenue receipts increased by 19.53 percent from
Tk. 95,188 crore in FY 2010-11 to Tk. 1,13,781
crore in FY 2011-12.
Monetary and Financial Sector
Following the global financial crisis, monetary
policy stance was accommodative in FY2010-11
which has been adjusted in FY 2011-12 consistent
with the changes in the global and domestic
economic scenario. The monetary policy of FY
2011-12 was formulated to maintain a restrained
money supply and credit growth to manage the
pressure arising from a number of factors including
the lagged effect of high domestic credit growth in
the previous year, high inflation transmitted
through global price hike of essential commodities
including food items and huge borrowing from
banking system to meet government expenditure.
The restrained monetary policy was adopted to
ensure continued support for adequate credit flows
to the productive and priority sectors including
agriculture and SME, while controlling money
supply and credit to unproductive sectors. To
downturn the inflation into a tolerable level
Bangladesh Bank has re-fixed the policy rate of
REPO and reverse REPO at 7.75 percent and 5.75
percent respectively by raising 225 points on 4
occasions.
Interest Rate
There was a maximum cap of 7.00 percent interest
rate on export credit fixed since January 10, 2004
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to facilitate export earnings. Recently, the cap on
interest rate on lending in all sectors other than
pre-shipment export credit and agricultural loans
has been withdrawn. This has brought
competitiveness among banks in fixing rate of
interest on lending in a rational manner. Banks are
allowed to differentiate interest rate up to a
maximum of 3.00 percent considering comparative
risk elements involved among borrowers in the
same lending category which they would promptly
expose in their respective website and inform to
the Bangladesh Bank.
External Sector
Export
In the wake of the recovery from global financial
recession, the export trade of Bangladesh made a
turnaround. However, sovereign credit crisis in
eurozone which is one of Bangladeshs main
export destinations is having its impact on export
trade. The export earnings of Bangladesh stood at
US$ 24,288 million in FY 2011-12, which was 5.90
percent higher than the export earnings (US$
22,928 million) of FY 2010-11. Export earnings in
FY 2011-12 by major categories increased mainly
for footwear (30.10 percent), engineering products
(21.10 percent), woven garments (13.90 percent)
and leather (10.80 percent). On the other hand,
export earnings dipped in respect of raw jute
(-25.40 percent), ceramic product (-10.20 percent)
and jute goods (-7.50 percent). Some of the
facilities under the incentive package declared by
the Government are still continuing. Assistance for
the entrepreneurs tiled New Market Exploration
Assistance announced under the incentive
package is also being extended this year for
diversification of goods and exploration of new
export market. In the meantime, export markets
have been created in Japan, Korea, South Africa
and Turkey. Besides, due to reduction of duties by
India, Bangladeshi commodities are having gainful
access to India.
Import
The total import payments (C&F) stood at US$
35,516 million during FY 2011-12, which was 5.50
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percent higher than the import payments of US$
33,657 million of the preceding year. Although
import payments increased at the beginning of this
fiscal year due to price hike of fuel in the global
market and higher demand of fuel for electricity
generation, it slowed down towards the end of the
year as import of unimportant goods were
discouraged. Analyzing the category of imported
goods, it is observed that, import payments for
industrial raw materials, petroleum and petroleum
products increased by 22.75 percent, 11.15
percent and 21.76 percent respectively, while
import of capital machinery and primary
commodities decreased by 13.73 percent and
25.79 percent respectively.
Overseas Employment and Remittance
Although export of manpower slowed down in the
first half of FY 2010-11 because of the impact of
global recession, particularly on the real estate
markets in the Middle East, and on industrial
labour demand in some South East Asian
economies such as Malaysia, it began to increase
from January 2011. The amount of remittances
increased by 6.03 percent to US$ 11,650.32
million in FY 2010-11 compared to that of the
previous year. Bangladesh earned remittances of
US$ 12,843.40 million in FY 2011-12 which was
10.24 percent higher than the amount of the
previous year. The Government has undertaken
several initiatives including diplomatic approaches
to explore new markets. As many as 6.91 lakh
workers went abroad in quest of jobs in FY
2011-12, which was 57.40 percent higher than the
number stood at in the previous year. To begin
manpower export in full swing to Africa, East
Europe and Latin America, a number of diplomatic
initiatives have been undertaken alongside
establishing new labour wings in several countries.
There is also an attempt to impart training on
various trades to create skilled labour force to
meet the demand of labour markets abroad.
Balance of Payment
Trade balance recorded a rise in deficit by 3.20
percent to US$ 7,995 million in the FY 2011-12 as
compared to the deficit of US$ 7,744 million during
FY 2010-11. During this period, the current
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account balance recorded a surplus of US$ 1,630
million as compared to the surplus of US$ 885
million of FY 2010-11.The deficit recorded in the
overall balance of payment stood at US$ 494
million in FY 2011-12, which was US$ 656 million
in FY 2010-11.
Medium Term Prospect of Bangladesh Economy
In the current context of domestic and global
economic scenario, a Medium-Term
Macroeconomic Framework (MTMF) for FY
2012-2016 has been worked out based on some
fundamental assumptions. Just after the recovery of
the world economy from yearlong global recession
during 2008-09, devastating tsunami and
destruction of nuclear power plant in Japan, the
ongoing sovereign debt crisis in several eurozone
economies and continuing economic instability and
high unemployment in the USA, have slowed the
pace of the world economic growth significantly. As
a result, the global output decreased in 2011.
However, afterwards, an integrated policy and
strategies to overcome the eurozone crisis,
rebouncing of US economic growth and sustaining
the domestic demand in emerging and developing
economies, it was expected that global output
would increase in 2012.
Different macroeconomic indicators for the next
fiscal year and over the medium term have been
updated in view of continued satisfactory
performance in revenue collection, growth in
agriculture sector, investment in infrastructure
including power, exchange rate stability and
containment of inflationary pressure.
In the Medium Term Macroeconomic Framework,
real GDP growth has been estimated at 7.20
percent for FY 2012-13, 7.60 percent for FY
2013-14, 8.00 percent for FY 2014-15 and 9.10
percent for FY 2015-16 respectively. It is expected
that investment will increase from 25.40 percent of
GDP in FY 2011-12 to 33.70 percent in FY 2016-17
where private and public investment will stand at
25.20 percent and 8.50 percent respectively. On
the other hand, domestic savings is expected to
increase to 22.40 percent from 19.60 percent and
national savings will go up from 29.40 percent to
32.80 percent in the medium term.
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Development of agriculture sector including that of
power, energy and communication sectors are
crucial for achieving the desired growth of GDP.
Undertaking initiatives as envisaged in the
roadmap for power, exploring new gas deposits to
meet existing energy demand and utilising
renewable energy will ensure investment-friendly
environment in power and energy sector. It is also
expected that infrastructure deficit will be removed
by reinvigorating public-Private Partnership (PPP)
initiatives in the development of communication
sector and efficient and timely implementation of
Annual Development Program. In order to ensure
proper implementation of projects to be taken up
under PPP, a scheme has been worked out and a
set of policies and guidelines have been approved
by the Government.
In agriculture sector, there was a consistent and
positive growth over the last three years. Huge
government support such as subsidy, power
supply for irrigation, flow of agricultural credit,
innovation of new variety of salinity tolerant seed
and weather, and increasing assistance to
agro-based industries contributed significantly in
achieving sustainable growth in agriculture sector.
All these activities will continue which is expected
to support sustainable agricultural growth.
The estimated government expenditure stood at
16.50 percent of GDP in FY 2011-12 which is
expected to be 18.40 percent in FY 2012-13. The
target for FY 2016-17 has been set at 20.60
percent of GDP. Against this, expenditure on
Annual Development Programme is planned to be
increased from 3.90 percent of GDP in FY 2011-12
to 7.00 percent of GDP in FY 2016-17.
For financing the deficit, Government has planned
to reduce borrowing from the banking system. In
this regard, priority has been given to foreign
assistance which were committed and in pipe line.
For consecutive two years, Standard and Poors
(S&P) and Moodys retained the same sovereign
credit rating for Bangladesh. In their respective
lists rating for Bangladesh is BB- and Ba3.
According to this rating, in terms of credit
worthiness, Bangladesh is at par with the
Philippines, Indonesia and Vietnam. Such rating
will decrease the cost of debenture and import
payment and will help in attracting more foreign
investment.
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Containing inflation is a big challenge for
macroeconomic stability. In MTMF, inflation has
forecasted to bring down at 7.50 percent in the
upcoming fiscal year and that is expected to bring
out almost 5.00 percent. It was expected that the
steps taken to increase food production,
uninterrupted food supply and enhance food
security would also be helpful in reining on
inflation. Bangladesh Bank in its monetary policy
statement has laid emphasis on limiting money
supply and discouraging credit flow to the
unproductive sectors. Side by side, emphasis is
also given to ensure credit flow to productive and
priority sectors including agriculture and SME
sectors.
Financial recession in eurozone economies, one of
the major export markets of Bangladesh, has
affected its export sector slowing it down to 6.20
percent in FY 2011-12. However, it has been
possible to tackle the crisis through integrated
efforts of euro countries. Besides, initiatives on
exploring new markets and diversification of export
goods have already contributed to our economy,
though to a limited extent.
The remittances from expatriate Bangladeshi
workers grew by 10.24 percent during this year
which has been estimated to be 12.00 percent for
next years. It is expected that concerted efforts on
exploring new labour markets and intensive
diplomatic initiatives will increase expatriate
employment and contribute towards sustaining the
existing trends of remittance of flows. The current
account balance (CAB) decreased but in MTMF it
is expected to bring back in a positive territory.
Pressures on exchange rate and foreign exchange
reserve have been offset due to adoption of
effective fiscal and monetary policy stances. Both
the exchange rate and reserve situation remained
stable at the end of FY 2011-12. The goal of
maintaining macroeconomic stability together with
expected GDP growth and target of inflation will be
achieved if the future shocks from domestic as well
as external sectors could be tackled properly.
Digital Bangladesh
Its true meaning lies in proper application of
technology to implement all the commitments of
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Kiv nqQ Zvi dj mU KvwUq DVv me ne ej Avkv
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|<|< << < | | -|, <|<<< <| <
gy`vbxwZi dj Zv wbimb Kiv me nqQ| 2011-12
<<< -|< |<|< -|<< |||| |< =
=< |<| |<||< ||| <| < <|<
<| < -|||< < <| < <|-t|<
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the government regarding education, health,
employment and poverty alleviation. The main
purpose of this idea is to improve the standards of
living of the people by empowering them, ensuring
transparency and accountability in all spheres of
life, establishing good-governance and, above all,
bringing public services to their doorsteps through
the most effective use of technology. In short,
Digital Bangladesh is a happy prosperous and
enlightened Bangladesh, which is free from
hunger, poverty, inequality and corruption and
belongs completely to its people and is driven
forward by digital technology.
Perspective Plan 2010-2021
The Government keeping in view the Golden
Jubilee of Independence has formulated
Bangladesh Perspective Planning 2010-2021,
in the light of Vision-2021 to attain a definite set of
objectives that relate to economic and social
development of Bangladesh. The document
reflects the hopes and aspirations of common
people which has been given the top priority and
incorporates the development philosophy of the
government, its longterm vision and strategic goals
of desired development. The fundamental
objective of this long term plan is to alleviate
poverty by achieving higher growth and to turn
Bangladesh into a medium income country where
poverty will be brought to the minimum and
regional disparity in the sphere of economic
development will be reduced significantly.
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cwZ cwiKbv 2010-2021
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72
percent in 2011 to 1.30 percent in 2012 but is
expected to rise to 1.50 percent in 2013. It has
been forecasted for eurozone to have sluggish
growth of -0.40 percent in 2012 which was 1.40
percent in 2011 and is expected to grow to 0.20
percent in 2013.
On the other hand, according to Asian
Development Outlook, October 2012, the dimming
global growth prospects and soft domestic
demand in the regions two largest economies are
slowing the pace of developing Asias expansion.
Growth was estimated to slide from 7.20 percent in
2011 to 6.10 percent in 2012, which was expected
to bounce back to register 6.70 percent growth in
2013.
Impressive Track Record of Bangladesh
Economy
Bangladeshs track record of achievements, in
different sectors and according to various
performance indicators, bear evidence that she is
making impressive and encouraging progress
towards attaining her goal of being a middle
income country by 2021. Bangladesh was able to
accelerate her GDP growth from under 4.00
percent per year to over 6.00 percent within a span
of two decades. Our country has been able to
make commendable transition from a
predominantly aid-dependent economy to a
trading nation. The combined net foreign
exchange earnings from export of goods and
remittance are at present about fifteen times more
than the aid we receive annually.
Bangladesh has established herself as the second
largest exporter of apparels in the world, after
China; our shipbuilding, footwear, pharmaceuticals
and other non-traditional exports are showing
encouraging signs. Our farmers have increased
food grains production by more than three fold
since independence enabling Bangladesh to more
towards food security. Our economy has been able
to demonstrate impressive resilience in the face of
multiple global and financial crisis. Bangladeshs
track record in attaining key Millennium
Development Goals (MDGs) including in the areas
of poverty alleviation, gender parity, and access to
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Directors Report
to the Shareholders
Bismillahir Rahmanir Rahim
Respected Shareholders
Assalamu Alaikum
On behalf of the Board of Directors, I am indeed
delighted to present before you the sixth Annual
Report of Agrani Bank Limited. The report
evaluates and analyzes banks overall operational
performance of 2012 compared to that of 2011. I
would request you to read the information and
analyses in conjunction with the audited financial
statements presented herewith. The report also
presents an overview of the global economic
scenario and the performance of Bangladesh
Economy to put in perspective the banks
performance.
Global Economic Scenario
Immediately after the recovery from economic
crisis in 2010, the global economy is again facing
challenges as the recession re-emerged in the first
half of FY 2011-12 due to sovereign debt crisis in
several euro-zone economies and economic
instability in the USA. However, steps taken to
reinvigorate the USA economy and joint efforts to
protect euro economies from further effect of
recession have slightly watered down the effect in
the second half of 2011. Despite some
deceleration in the growth of the developed
economies and slight slowdown in economic
growth of emerging and developing countries
compared to the growth momentum in 2011;
economic growth of emerging and developing
countries remains fairly strong.
According to World Economic Outlook (WEO),
October 2012 of IMF, despite that the world
economic growth slowed to 3.30 percent in 2012
from 3.80 percent in 2011, it is projected to rise to
3.60 percent in 2013. Growth of high income
countries would deteriorate further from 1.60
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debt) |< |<|< =< <<|< |< |<
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KvUvbv me nqQ| 2011 mvji wZxqva hyivi
<||< |*||< =< #<| +< <||< <|
g`vi cfve _K ivi Rb h mwwjZ cPv MnY Kiv
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health and education has received high global
acclaim.
These aforesaid achievements were possible
through a combination of factors: supportive
government policies and targeted resource
allocation; the hard work of farmers and workers at
home and abroad, contribution of the private
sector and our vibrant entrepreneurial class,
proactive role of our non-government actors
including in areas of disbursement of micro-credit,
development of micro-enterprises and raising
consciousness about economic and social issues;
target support provided by development partners.
Macroeconomic Scenario of Bangladesh
Economic Growth
Although the growth of Bangladesh economy
slowed down in the context of negative growth in
world trade at the beginning of the global financial
crisis in FY 2008-09, next year this growth
bounced back and average growth remained
above 6.00 percent in the last three years.
According to BBS, GDP grew to 6.71 percent in FY
2010-11 and the estimated GDP growth rate for FY
2011-12 is 6.32 percent. However, because of high
base effect induced by more than 5.00 percent
growth in agriculture sector during the last two
years, the growth of FY 2011-12 dipped a little
which is still satisfactory. Alongside, substantial
growth in industry and service sector has
contributed to overall GDP growth. In FY2011-12,
growth in agriculture, industry and service sectors
have estimated to 2.53 percent, 9.47 percent and
6.06 percent respectively. This year GDP and GNI
per capita stood at US$ 772 and US$ 848 which
were US$ 748 and US$ 816 respectively in the last
fiscal year.
Savings and Investment
Estimated domestic savings slightly increased
from 19.30 percent of GDP in FY 2010-11 to 19.40
percent of GDP in FY 2011-12. Investment in FY
2011-12 also showed similar feature with a slight
increase and stood at 25.40 percent of GDP in FY
2011-12 from 25.20 percent of GDP in FY2010-11.
Of which the share of private investment stood at
19.10 percent of GDP while that of public
investment was 6.30 percent in FY 2011-12. In FY
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2010-11, the private and the public sector investments
were 19.50 percent and 5.60 percent of GDP
respectively. Major initiatives of the Government
implemented in infrastructure sector including power
and reduction in cost of doing business helped create
investment-friendly environment. In addition to this,
because of satisfactory growth of remittances, national
savings in FY 2011-12 upturned to 29.40 percent of GDP
from 28.80 percent of GDP in the previous year.
Inflation
The 12 month average inflation rate reached to
10.62 percent in FY 2011-12 which was 8.80
percent in FY2010-11. Oil and food inflation in
global market and excessive credit flows to
unproductive sectors were mainly responsible for
this upturn. Inflation on point to point basis in June
2012 stood at 8.56 percent which was 10.49
percent in March 2011. From the trend analysis of
inflation in Bangladesh, it is clear that in the first
half of FY 2011- 2012 general inflation went up
because of food inflation. However, at the end of
FY2011-12, non-food inflation was the key factor in
pushing general inflation upward. At this point in
time, food inflation recorded to 7.08 (monthly rate,
point to point basis) percent from about 13.00
percent in the same month of FY2010-11.
Satisfactory food production and supply of
essential commodities including demand
management through Open Market Sale (OMS) of
the essential commodities and sufficient stock of
food grains contributed to the efforts of pulling
down food inflation. On the other hand, there was
a non-food inflationary pressure due to price hike
in international market, depreciation in exchange
rate and adjustment of oil price. In order to contain
inflation, the Government has undertaken
necessary steps by forging better coordination
between fiscal and monetary policies. Although
there was a pressure of oil price adjustment on
food price, it was transitory. It is expected that
actions like discouraging credit flows to
unproductive sector alongside adopting restrained
and effective monetary policy will reduce the
inflationary pressure.
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Fiscal Situation
Revenue Earning
A target for revenue receipt was set at Tk.1,18,385
crore (12.94 percent of GDP) in FY 2011-12 of
which NBR tax revenue accounted for Tk. 91,870
crore (10.00 percent of GDP), non-NBR revenue,
Tk. 3,915 crore (0.40 percent of GDP) and non-tax
revenue Tk. 22,600 crore (2.47 percent of GDP).
Against these targets, tax revenue from NBR
sources stood at Tk. 91,597 crore while revenue
receipts from non-NBR source and non-tax
revenue receipts were Tk. 3,633 crore and Tk.
18,550 core respectively in FY 2011-12. Total
revenue receipts increased by 19.53 percent from
Tk. 95,188 crore in FY 2010-11 to Tk. 1,13,781
crore in FY 2011-12.
Monetary and Financial Sector
Following the global financial crisis, monetary
policy stance was accommodative in FY2010-11
which has been adjusted in FY 2011-12 consistent
with the changes in the global and domestic
economic scenario. The monetary policy of FY
2011-12 was formulated to maintain a restrained
money supply and credit growth to manage the
pressure arising from a number of factors including
the lagged effect of high domestic credit growth in
the previous year, high inflation transmitted
through global price hike of essential commodities
including food items and huge borrowing from
banking system to meet government expenditure.
The restrained monetary policy was adopted to
ensure continued support for adequate credit flows
to the productive and priority sectors including
agriculture and SME, while controlling money
supply and credit to unproductive sectors. To
downturn the inflation into a tolerable level
Bangladesh Bank has re-fixed the policy rate of
REPO and reverse REPO at 7.75 percent and 5.75
percent respectively by raising 225 points on 4
occasions.
Interest Rate
There was a maximum cap of 7.00 percent interest
rate on export credit fixed since January 10, 2004
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gy`v I Avw_K LvZ
| <<< |<<| <|< < <| |<||<
| |<-|-<<| <| <||
<|| -||| (accomodative monetary
policy)- || |<< || - <<|
eQii AfixY FYi DP cewi wejw^Z cfve (lag
effect) |||< <||< |-- | || -<<
<|+< |< ||< =<<| <|+ =< <|-t|
e`wkK gy`vi wb Atcevni dj jb`b fvimvg
DZ Pvc ckgbi j 2011-12 gy`v bxwZ cYxZ nq|
-| || -| < <|| < < |-| <
< | < <|| |< |||| <|<,
z` I gvSvwi D`vM LvZmn Drcv`bkxj Ges AMvwaKvi
| < <| <|| ||+<<< << <|<|
<<| - ||< -| <| || ||<
<||- <|< | <<<< | <
|| - -|< <| =< |<| <| -'-| | :
<| <|+ << <<|= -.-c < c.-c |
t|<|< << , -:-:: <<<< ||
-< -|< | - -| --c <| <|+ <<| -
my`i nvi
||<< | |< <|< |<| <| | -
-|< (flexible interest rate) ||||< <|
to facilitate export earnings. Recently, the cap on
interest rate on lending in all sectors other than
pre-shipment export credit and agricultural loans
has been withdrawn. This has brought
competitiveness among banks in fixing rate of
interest on lending in a rational manner. Banks are
allowed to differentiate interest rate up to a
maximum of 3.00 percent considering comparative
risk elements involved among borrowers in the
same lending category which they would promptly
expose in their respective website and inform to
the Bangladesh Bank.
External Sector
Export
In the wake of the recovery from global financial
recession, the export trade of Bangladesh made a
turnaround. However, sovereign credit crisis in
eurozone which is one of Bangladeshs main
export destinations is having its impact on export
trade. The export earnings of Bangladesh stood at
US$ 24,288 million in FY 2011-12, which was 5.90
percent higher than the export earnings (US$
22,928 million) of FY 2010-11. Export earnings in
FY 2011-12 by major categories increased mainly
for footwear (30.10 percent), engineering products
(21.10 percent), woven garments (13.90 percent)
and leather (10.80 percent). On the other hand,
export earnings dipped in respect of raw jute
(-25.40 percent), ceramic product (-10.20 percent)
and jute goods (-7.50 percent). Some of the
facilities under the incentive package declared by
the Government are still continuing. Assistance for
the entrepreneurs tiled New Market Exploration
Assistance announced under the incentive
package is also being extended this year for
diversification of goods and exploration of new
export market. In the meantime, export markets
have been created in Japan, Korea, South Africa
and Turkey. Besides, due to reduction of duties by
India, Bangladeshi commodities are having gainful
access to India.
Import
The total import payments (C&F) stood at US$
35,516 million during FY 2011-12, which was 5.50
<|<|< |-< - -|< |<|<< | -|-
<| | < - -|<< < || |<|< <<| -<
mvcwZKKvj mvweK cwiwwZ chvjvPbv Ki
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|<<| <| . | < <| << |<< =<
|<<| = - -|< ||<|< |-< -
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-| |<|| << |< <|| <|< ||< |< |<
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|< ||< New Market Exploration Assistance
=< |<| -||-< <|< -|| -| <|-
< #|< <||< |-< ||, <||<|,
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percent higher than the import payments of US$
33,657 million of the preceding year. Although
import payments increased at the beginning of this
fiscal year due to price hike of fuel in the global
market and higher demand of fuel for electricity
generation, it slowed down towards the end of the
year as import of unimportant goods were
discouraged. Analyzing the category of imported
goods, it is observed that, import payments for
industrial raw materials, petroleum and petroleum
products increased by 22.75 percent, 11.15
percent and 21.76 percent respectively, while
import of capital machinery and primary
commodities decreased by 13.73 percent and
25.79 percent respectively.
Overseas Employment and Remittance
Although export of manpower slowed down in the
first half of FY 2010-11 because of the impact of
global recession, particularly on the real estate
markets in the Middle East, and on industrial
labour demand in some South East Asian
economies such as Malaysia, it began to increase
from January 2011. The amount of remittances
increased by 6.03 percent to US$ 11,650.32
million in FY 2010-11 compared to that of the
previous year. Bangladesh earned remittances of
US$ 12,843.40 million in FY 2011-12 which was
10.24 percent higher than the amount of the
previous year. The Government has undertaken
several initiatives including diplomatic approaches
to explore new markets. As many as 6.91 lakh
workers went abroad in quest of jobs in FY
2011-12, which was 57.40 percent higher than the
number stood at in the previous year. To begin
manpower export in full swing to Africa, East
Europe and Latin America, a number of diplomatic
initiatives have been undertaken alongside
establishing new labour wings in several countries.
There is also an attempt to impart training on
various trades to create skilled labour force to
meet the demand of labour markets abroad.
Balance of Payment
Trade balance recorded a rise in deficit by 3.20
percent to US$ 7,995 million in the FY 2011-12 as
compared to the deficit of US$ 7,744 million during
FY 2010-11. During this period, the current
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wbirmvwnZ Kivi dj mvcwZK mgq Avg`vwb cew
-| |-|| < << << -| <| <,
FYc wbwi wfwZ 2012 mb g~jabx hcvwZ Ges
| |-||< < -| <<|= :.-
| =< -c.-> | |-|| < <|+
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|||- <<| - <| ||--| -| |<|
<||- - | <|| |<| -| | =
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account balance recorded a surplus of US$ 1,630
million as compared to the surplus of US$ 885
million of FY 2010-11.The deficit recorded in the
overall balance of payment stood at US$ 494
million in FY 2011-12, which was US$ 656 million
in FY 2010-11.
Medium Term Prospect of Bangladesh Economy
In the current context of domestic and global
economic scenario, a Medium-Term
Macroeconomic Framework (MTMF) for FY
2012-2016 has been worked out based on some
fundamental assumptions. Just after the recovery of
the world economy from yearlong global recession
during 2008-09, devastating tsunami and
destruction of nuclear power plant in Japan, the
ongoing sovereign debt crisis in several eurozone
economies and continuing economic instability and
high unemployment in the USA, have slowed the
pace of the world economic growth significantly. As
a result, the global output decreased in 2011.
However, afterwards, an integrated policy and
strategies to overcome the eurozone crisis,
rebouncing of US economic growth and sustaining
the domestic demand in emerging and developing
economies, it was expected that global output
would increase in 2012.
Different macroeconomic indicators for the next
fiscal year and over the medium term have been
updated in view of continued satisfactory
performance in revenue collection, growth in
agriculture sector, investment in infrastructure
including power, exchange rate stability and
containment of inflationary pressure.
In the Medium Term Macroeconomic Framework,
real GDP growth has been estimated at 7.20
percent for FY 2012-13, 7.60 percent for FY
2013-14, 8.00 percent for FY 2014-15 and 9.10
percent for FY 2015-16 respectively. It is expected
that investment will increase from 25.40 percent of
GDP in FY 2011-12 to 33.70 percent in FY 2016-17
where private and public investment will stand at
25.20 percent and 8.50 percent respectively. On
the other hand, domestic savings is expected to
increase to 22.40 percent from 19.60 percent and
national savings will go up from 29.40 percent to
32.80 percent in the medium term.
| ||< |<, <| <<| <<< = |-|<
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|<
evsjv`ki A_bxwZi gagqv`x mvebv
-| <<| |<<| <|< < <| <|<
|<||< | <| ||- |< << ||
<< <|-| ||< <|< <|||, (Medium
Term Macroeconomic Framework- MTMF,
2012-16) <<| - ----> |<||
|<-| << <||< <+|<< < || <|<|
|<- || < |<||<< |<- <- |<<, #<|
+ |< |< <|| =< <<|<
|< |< < |<< |<| =<| -|< |-<
- -:: | <|< <|+ (global
output) < <| < #<| +< | <<
DiYi mwwjZ bxwZ Kkj MnY, hyivi A_bxwZZ
| |< || =< |<<|| < | <||< -
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-
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Development of agriculture sector including that of
power, energy and communication sectors are
crucial for achieving the desired growth of GDP.
Undertaking initiatives as envisaged in the
roadmap for power, exploring new gas deposits to
meet existing energy demand and utilising
renewable energy will ensure investment-friendly
environment in power and energy sector. It is also
expected that infrastructure deficit will be removed
by reinvigorating public-Private Partnership (PPP)
initiatives in the development of communication
sector and efficient and timely implementation of
Annual Development Program. In order to ensure
proper implementation of projects to be taken up
under PPP, a scheme has been worked out and a
set of policies and guidelines have been approved
by the Government.
In agriculture sector, there was a consistent and
positive growth over the last three years. Huge
government support such as subsidy, power
supply for irrigation, flow of agricultural credit,
innovation of new variety of salinity tolerant seed
and weather, and increasing assistance to
agro-based industries contributed significantly in
achieving sustainable growth in agriculture sector.
All these activities will continue which is expected
to support sustainable agricultural growth.
The estimated government expenditure stood at
16.50 percent of GDP in FY 2011-12 which is
expected to be 18.40 percent in FY 2012-13. The
target for FY 2016-17 has been set at 20.60
percent of GDP. Against this, expenditure on
Annual Development Programme is planned to be
increased from 3.90 percent of GDP in FY 2011-12
to 7.00 percent of GDP in FY 2016-17.
For financing the deficit, Government has planned
to reduce borrowing from the banking system. In
this regard, priority has been given to foreign
assistance which were committed and in pipe line.
For consecutive two years, Standard and Poors
(S&P) and Moodys retained the same sovereign
credit rating for Bangladesh. In their respective
lists rating for Bangladesh is BB- and Ba3.
According to this rating, in terms of credit
worthiness, Bangladesh is at par with the
Philippines, Indonesia and Vietnam. Such rating
will decrease the cost of debenture and import
payment and will help in attracting more foreign
investment.
G cew ARb me ne g~jZ we`yr I Rvjvwb, hvMvhvM
<<||| =< <|< |< < |<| |<- |
<<|<< <<| <|| <|<= -, |||< ||--|
| < =< <|<| ||| <<-|<<
|< |<- < |||< ||--| < |<|| |<<<
|< < || <<| - <||<| |<
<<||<-<<<||< |-||< (|||) -|<
=| | =< =<#|< <||<< <|< <
<|<|< |< <<||| |
(infrastructure deficit) `~i Kiv me ne ej cZvkv
<<| - |||'< |<| |<< < < <r
- <<| -< |< <|<|< =<| <| -
=< |||| < |-|<| <<|< |- <<
<|< | | << <|+< <|<|<||-<| <| |
<|< | <# <|+ < <|< <<||<
-|| <- <| |< -|, < |<<|
|<- <<<|-, <|< < <|- <|+, |< |<-|<| <
jeYvZv mwnz exR Dveb Ges Kwl wfwK wki
|<<| -|| -| | <|< | <|+ |<<
chvq ivLv me nqQ| Kwl LvZ G Kvhgmg~n
|<<< <|- <|<< <| <|<| <# <|+ <|
<| |<| <|< < || <<| <|
<<||< < -::-:- <<<< ||< ||
(|||'< ::.c |) << -:--: <<<
|||'< :-.- | =< =| | -::-:-
<<< ||- |||'< -.: | | <<|<
|| |<|< <<| - =< < <||<<
<| < -::-:- <<<< |||'< .> |
<< -::-:- <<< |||'< -. | |<
|<<r| <
|| <| <|< <<| << - -|<
|<<r| < = |#|# <|<| |
<-|< -|| |$< <|<<< - - <
| |< -< |<<| <<|<< |<<|
<| , Standard & Poors (S & P) =<
Moodys <||-< << -'<< =<# |<
| <| ||<| < = <| ||<| S & P
=< Moodys <||-< BB- =< Ba 3 | -|
<< = <| <|| |<|<< ||<< |<
|<|< <||- |||#, #-||| < ||<
<| << =< <| =< <
< -| |< =< = |-|| < | -< -
<-|< |<||< |<| <|+ |<
Containing inflation is a big challenge for
macroeconomic stability. In MTMF, inflation has
forecasted to bring down at 7.50 percent in the
upcoming fiscal year and that is expected to bring
out almost 5.00 percent. It was expected that the
steps taken to increase food production,
uninterrupted food supply and enhance food
security would also be helpful in reining on
inflation. Bangladesh Bank in its monetary policy
statement has laid emphasis on limiting money
supply and discouraging credit flow to the
unproductive sectors. Side by side, emphasis is
also given to ensure credit flow to productive and
priority sectors including agriculture and SME
sectors.
Financial recession in eurozone economies, one of
the major export markets of Bangladesh, has
affected its export sector slowing it down to 6.20
percent in FY 2011-12. However, it has been
possible to tackle the crisis through integrated
efforts of euro countries. Besides, initiatives on
exploring new markets and diversification of export
goods have already contributed to our economy,
though to a limited extent.
The remittances from expatriate Bangladeshi
workers grew by 10.24 percent during this year
which has been estimated to be 12.00 percent for
next years. It is expected that concerted efforts on
exploring new labour markets and intensive
diplomatic initiatives will increase expatriate
employment and contribute towards sustaining the
existing trends of remittance of flows. The current
account balance (CAB) decreased but in MTMF it
is expected to bring back in a positive territory.
Pressures on exchange rate and foreign exchange
reserve have been offset due to adoption of
effective fiscal and monetary policy stances. Both
the exchange rate and reserve situation remained
stable at the end of FY 2011-12. The goal of
maintaining macroeconomic stability together with
expected GDP growth and target of inflation will be
achieved if the future shocks from domestic as well
as external sectors could be tackled properly.
Digital Bangladesh
Its true meaning lies in proper application of
technology to implement all the commitments of
<|+ < < |= -| ||<
| <|| MTMF-= ||| <<< ||< -|<
-| -.c | =< <|- | | c.
| <| ||< <|| <<| - ||
|< <| |- |- <|+ <<<|- <<|
||< <|| =< |- |<|| |<-|< <<|<
<<|<< -| <|<=- || | |<|
<|< < || <<| - -| || -| <
<|| < < |-| < < |
FYi hvMvb wbqYi cvkvcvwk Kwl, z` I gvSvwi
-| |- |-| =< ||<<|< | <
<| <|| ||+<<< << <|<| <<| -
<||-< <| <||<||< #<|| #|<
<||< <|< |< <|| |< <|+< <<
|<|< |< =< | -::-:- <<< :.-
| = < #<| < |<
`kjvi mwwjZ cqvm Ges G j h Kvhg MnY
Kiv nqQ Zvi dj mU KvwUq DVv me ne ej Avkv
<<| <| =|$|, <||< < < <||
<|<<< < <|<= -| | -| |<
|| <| -< -|
<||* <|-< <|+ | <<< :.-- |
-, <| <<| << - :-. | -|< <|+ |<
< <<| - <|- <|< -|<
|< <||< << | <-|<
<| <|+ < <||* <|-< <|<| <| <|< <
|| <<| - | |-|<< |<|< -|
< | <|< <| <|<< < MTMF-=
Kiv nqQ| mcwZ gy`vi wewbgq nvi I e`wkK gy`vi
|<|< << < | | -|, <|<<< <| <
gy`vbxwZi dj Zv wbimb Kiv me nqQ| 2011-12
<<< -|< |<|< -|<< |||| |< =
=< |<| |<||< ||| <| < <|<
<| < -|||< < <| < <|-t|<
|| |<|<| << ||< |||| <| <||-
KvwLZ cew ARb me ne ej Avkv Kiv hvq|
wWwRUvj evsjv`k
<|< |<< |< |< ||, | < -||<-
|<|- <<|<< < || << < =< <
the government regarding education, health,
employment and poverty alleviation. The main
purpose of this idea is to improve the standards of
living of the people by empowering them, ensuring
transparency and accountability in all spheres of
life, establishing good-governance and, above all,
bringing public services to their doorsteps through
the most effective use of technology. In short,
Digital Bangladesh is a happy prosperous and
enlightened Bangladesh, which is free from
hunger, poverty, inequality and corruption and
belongs completely to its people and is driven
forward by digital technology.
Perspective Plan 2010-2021
The Government keeping in view the Golden
Jubilee of Independence has formulated
Bangladesh Perspective Planning 2010-2021,
in the light of Vision-2021 to attain a definite set of
objectives that relate to economic and social
development of Bangladesh. The document
reflects the hopes and aspirations of common
people which has been given the top priority and
incorporates the development philosophy of the
government, its longterm vision and strategic goals
of desired development. The fundamental
objective of this long term plan is to alleviate
poverty by achieving higher growth and to turn
Bangladesh into a medium income country where
poverty will be brought to the minimum and
regional disparity in the sphere of economic
development will be reduced significantly.
< |<<| ||- ||| <||--<|<|< |
+ -| <|< |<< | << <
|< |< |-< |<<||< || <<|,
|< < | < -|<+| ||+ <<|,
| || <<| =< <||< < -|<|$|
< <| -| < , |||
<||- -| |-+ < |||< <||-, < -
-< < |<< <, <| <|, -||<-, | <
-|| <|<< | =< < - ||| <| |<
|< |< |-< =| <|<
cwZ cwiKbv 2010-2021
|<||< < |< | < <<|< '<||-
| |<<r| -:---:' |<< |<<r| -|
<< <||-< <|< < |||< <
||- < # <<r---: = |<<r|
-< <|| < < || -
<< ||< |<|<< ||-|<||< <|
||<<|< |- ||< -||-| - < <
| <<| - = -||-| <<r< |<
+ - < <|+ < |< -||<- |<|
=< --: |< < <||-< =<| < |<
`k cwiYZ Kiv hLvb `vwi` mewb chvq Aevb
<<< =< <|< |+|< << < <|<
Annual Report 2012 73
percent in 2011 to 1.30 percent in 2012 but is
expected to rise to 1.50 percent in 2013. It has
been forecasted for eurozone to have sluggish
growth of -0.40 percent in 2012 which was 1.40
percent in 2011 and is expected to grow to 0.20
percent in 2013.
On the other hand, according to Asian
Development Outlook, October 2012, the dimming
global growth prospects and soft domestic
demand in the regions two largest economies are
slowing the pace of developing Asias expansion.
Growth was estimated to slide from 7.20 percent in
2011 to 6.10 percent in 2012, which was expected
to bounce back to register 6.70 percent growth in
2013.
Impressive Track Record of Bangladesh
Economy
Bangladeshs track record of achievements, in
different sectors and according to various
performance indicators, bear evidence that she is
making impressive and encouraging progress
towards attaining her goal of being a middle
income country by 2021. Bangladesh was able to
accelerate her GDP growth from under 4.00
percent per year to over 6.00 percent within a span
of two decades. Our country has been able to
make commendable transition from a
predominantly aid-dependent economy to a
trading nation. The combined net foreign
exchange earnings from export of goods and
remittance are at present about fifteen times more
than the aid we receive annually.
Bangladesh has established herself as the second
largest exporter of apparels in the world, after
China; our shipbuilding, footwear, pharmaceuticals
and other non-traditional exports are showing
encouraging signs. Our farmers have increased
food grains production by more than three fold
since independence enabling Bangladesh to more
towards food security. Our economy has been able
to demonstrate impressive resilience in the face of
multiple global and financial crisis. Bangladeshs
track record in attaining key Millennium
Development Goals (MDGs) including in the areas
of poverty alleviation, gender parity, and access to
:.c | | -<|< <|| <<| - #<|
+ || |<|<< -|< <|| <<| -, <|
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Outlook, October 2012-= |<<|| ||--| -| |<|
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--: |< < =<| < |< - |< -<|<
<||-< =| ||<=< | ||< -
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Directors Report
to the Shareholders
Bismillahir Rahmanir Rahim
Respected Shareholders
Assalamu Alaikum
On behalf of the Board of Directors, I am indeed
delighted to present before you the sixth Annual
Report of Agrani Bank Limited. The report
evaluates and analyzes banks overall operational
performance of 2012 compared to that of 2011. I
would request you to read the information and
analyses in conjunction with the audited financial
statements presented herewith. The report also
presents an overview of the global economic
scenario and the performance of Bangladesh
Economy to put in perspective the banks
performance.
Global Economic Scenario
Immediately after the recovery from economic
crisis in 2010, the global economy is again facing
challenges as the recession re-emerged in the first
half of FY 2011-12 due to sovereign debt crisis in
several euro-zone economies and economic
instability in the USA. However, steps taken to
reinvigorate the USA economy and joint efforts to
protect euro economies from further effect of
recession have slightly watered down the effect in
the second half of 2011. Despite some
deceleration in the growth of the developed
economies and slight slowdown in economic
growth of emerging and developing countries
compared to the growth momentum in 2011;
economic growth of emerging and developing
countries remains fairly strong.
According to World Economic Outlook (WEO),
October 2012 of IMF, despite that the world
economic growth slowed to 3.30 percent in 2012
from 3.80 percent in 2011, it is projected to rise to
3.60 percent in 2013. Growth of high income
countries would deteriorate further from 1.60
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health and education has received high global
acclaim.
These aforesaid achievements were possible
through a combination of factors: supportive
government policies and targeted resource
allocation; the hard work of farmers and workers at
home and abroad, contribution of the private
sector and our vibrant entrepreneurial class,
proactive role of our non-government actors
including in areas of disbursement of micro-credit,
development of micro-enterprises and raising
consciousness about economic and social issues;
target support provided by development partners.
Macroeconomic Scenario of Bangladesh
Economic Growth
Although the growth of Bangladesh economy
slowed down in the context of negative growth in
world trade at the beginning of the global financial
crisis in FY 2008-09, next year this growth
bounced back and average growth remained
above 6.00 percent in the last three years.
According to BBS, GDP grew to 6.71 percent in FY
2010-11 and the estimated GDP growth rate for FY
2011-12 is 6.32 percent. However, because of high
base effect induced by more than 5.00 percent
growth in agriculture sector during the last two
years, the growth of FY 2011-12 dipped a little
which is still satisfactory. Alongside, substantial
growth in industry and service sector has
contributed to overall GDP growth. In FY2011-12,
growth in agriculture, industry and service sectors
have estimated to 2.53 percent, 9.47 percent and
6.06 percent respectively. This year GDP and GNI
per capita stood at US$ 772 and US$ 848 which
were US$ 748 and US$ 816 respectively in the last
fiscal year.
Savings and Investment
Estimated domestic savings slightly increased
from 19.30 percent of GDP in FY 2010-11 to 19.40
percent of GDP in FY 2011-12. Investment in FY
2011-12 also showed similar feature with a slight
increase and stood at 25.40 percent of GDP in FY
2011-12 from 25.20 percent of GDP in FY2010-11.
Of which the share of private investment stood at
19.10 percent of GDP while that of public
investment was 6.30 percent in FY 2011-12. In FY
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2010-11, the private and the public sector investments
were 19.50 percent and 5.60 percent of GDP
respectively. Major initiatives of the Government
implemented in infrastructure sector including power
and reduction in cost of doing business helped create
investment-friendly environment. In addition to this,
because of satisfactory growth of remittances, national
savings in FY 2011-12 upturned to 29.40 percent of GDP
from 28.80 percent of GDP in the previous year.
Inflation
The 12 month average inflation rate reached to
10.62 percent in FY 2011-12 which was 8.80
percent in FY2010-11. Oil and food inflation in
global market and excessive credit flows to
unproductive sectors were mainly responsible for
this upturn. Inflation on point to point basis in June
2012 stood at 8.56 percent which was 10.49
percent in March 2011. From the trend analysis of
inflation in Bangladesh, it is clear that in the first
half of FY 2011- 2012 general inflation went up
because of food inflation. However, at the end of
FY2011-12, non-food inflation was the key factor in
pushing general inflation upward. At this point in
time, food inflation recorded to 7.08 (monthly rate,
point to point basis) percent from about 13.00
percent in the same month of FY2010-11.
Satisfactory food production and supply of
essential commodities including demand
management through Open Market Sale (OMS) of
the essential commodities and sufficient stock of
food grains contributed to the efforts of pulling
down food inflation. On the other hand, there was
a non-food inflationary pressure due to price hike
in international market, depreciation in exchange
rate and adjustment of oil price. In order to contain
inflation, the Government has undertaken
necessary steps by forging better coordination
between fiscal and monetary policies. Although
there was a pressure of oil price adjustment on
food price, it was transitory. It is expected that
actions like discouraging credit flows to
unproductive sector alongside adopting restrained
and effective monetary policy will reduce the
inflationary pressure.
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Fiscal Situation
Revenue Earning
A target for revenue receipt was set at Tk.1,18,385
crore (12.94 percent of GDP) in FY 2011-12 of
which NBR tax revenue accounted for Tk. 91,870
crore (10.00 percent of GDP), non-NBR revenue,
Tk. 3,915 crore (0.40 percent of GDP) and non-tax
revenue Tk. 22,600 crore (2.47 percent of GDP).
Against these targets, tax revenue from NBR
sources stood at Tk. 91,597 crore while revenue
receipts from non-NBR source and non-tax
revenue receipts were Tk. 3,633 crore and Tk.
18,550 core respectively in FY 2011-12. Total
revenue receipts increased by 19.53 percent from
Tk. 95,188 crore in FY 2010-11 to Tk. 1,13,781
crore in FY 2011-12.
Monetary and Financial Sector
Following the global financial crisis, monetary
policy stance was accommodative in FY2010-11
which has been adjusted in FY 2011-12 consistent
with the changes in the global and domestic
economic scenario. The monetary policy of FY
2011-12 was formulated to maintain a restrained
money supply and credit growth to manage the
pressure arising from a number of factors including
the lagged effect of high domestic credit growth in
the previous year, high inflation transmitted
through global price hike of essential commodities
including food items and huge borrowing from
banking system to meet government expenditure.
The restrained monetary policy was adopted to
ensure continued support for adequate credit flows
to the productive and priority sectors including
agriculture and SME, while controlling money
supply and credit to unproductive sectors. To
downturn the inflation into a tolerable level
Bangladesh Bank has re-fixed the policy rate of
REPO and reverse REPO at 7.75 percent and 5.75
percent respectively by raising 225 points on 4
occasions.
Interest Rate
There was a maximum cap of 7.00 percent interest
rate on export credit fixed since January 10, 2004
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to facilitate export earnings. Recently, the cap on
interest rate on lending in all sectors other than
pre-shipment export credit and agricultural loans
has been withdrawn. This has brought
competitiveness among banks in fixing rate of
interest on lending in a rational manner. Banks are
allowed to differentiate interest rate up to a
maximum of 3.00 percent considering comparative
risk elements involved among borrowers in the
same lending category which they would promptly
expose in their respective website and inform to
the Bangladesh Bank.
External Sector
Export
In the wake of the recovery from global financial
recession, the export trade of Bangladesh made a
turnaround. However, sovereign credit crisis in
eurozone which is one of Bangladeshs main
export destinations is having its impact on export
trade. The export earnings of Bangladesh stood at
US$ 24,288 million in FY 2011-12, which was 5.90
percent higher than the export earnings (US$
22,928 million) of FY 2010-11. Export earnings in
FY 2011-12 by major categories increased mainly
for footwear (30.10 percent), engineering products
(21.10 percent), woven garments (13.90 percent)
and leather (10.80 percent). On the other hand,
export earnings dipped in respect of raw jute
(-25.40 percent), ceramic product (-10.20 percent)
and jute goods (-7.50 percent). Some of the
facilities under the incentive package declared by
the Government are still continuing. Assistance for
the entrepreneurs tiled New Market Exploration
Assistance announced under the incentive
package is also being extended this year for
diversification of goods and exploration of new
export market. In the meantime, export markets
have been created in Japan, Korea, South Africa
and Turkey. Besides, due to reduction of duties by
India, Bangladeshi commodities are having gainful
access to India.
Import
The total import payments (C&F) stood at US$
35,516 million during FY 2011-12, which was 5.50
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percent higher than the import payments of US$
33,657 million of the preceding year. Although
import payments increased at the beginning of this
fiscal year due to price hike of fuel in the global
market and higher demand of fuel for electricity
generation, it slowed down towards the end of the
year as import of unimportant goods were
discouraged. Analyzing the category of imported
goods, it is observed that, import payments for
industrial raw materials, petroleum and petroleum
products increased by 22.75 percent, 11.15
percent and 21.76 percent respectively, while
import of capital machinery and primary
commodities decreased by 13.73 percent and
25.79 percent respectively.
Overseas Employment and Remittance
Although export of manpower slowed down in the
first half of FY 2010-11 because of the impact of
global recession, particularly on the real estate
markets in the Middle East, and on industrial
labour demand in some South East Asian
economies such as Malaysia, it began to increase
from January 2011. The amount of remittances
increased by 6.03 percent to US$ 11,650.32
million in FY 2010-11 compared to that of the
previous year. Bangladesh earned remittances of
US$ 12,843.40 million in FY 2011-12 which was
10.24 percent higher than the amount of the
previous year. The Government has undertaken
several initiatives including diplomatic approaches
to explore new markets. As many as 6.91 lakh
workers went abroad in quest of jobs in FY
2011-12, which was 57.40 percent higher than the
number stood at in the previous year. To begin
manpower export in full swing to Africa, East
Europe and Latin America, a number of diplomatic
initiatives have been undertaken alongside
establishing new labour wings in several countries.
There is also an attempt to impart training on
various trades to create skilled labour force to
meet the demand of labour markets abroad.
Balance of Payment
Trade balance recorded a rise in deficit by 3.20
percent to US$ 7,995 million in the FY 2011-12 as
compared to the deficit of US$ 7,744 million during
FY 2010-11. During this period, the current
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account balance recorded a surplus of US$ 1,630
million as compared to the surplus of US$ 885
million of FY 2010-11.The deficit recorded in the
overall balance of payment stood at US$ 494
million in FY 2011-12, which was US$ 656 million
in FY 2010-11.
Medium Term Prospect of Bangladesh Economy
In the current context of domestic and global
economic scenario, a Medium-Term
Macroeconomic Framework (MTMF) for FY
2012-2016 has been worked out based on some
fundamental assumptions. Just after the recovery of
the world economy from yearlong global recession
during 2008-09, devastating tsunami and
destruction of nuclear power plant in Japan, the
ongoing sovereign debt crisis in several eurozone
economies and continuing economic instability and
high unemployment in the USA, have slowed the
pace of the world economic growth significantly. As
a result, the global output decreased in 2011.
However, afterwards, an integrated policy and
strategies to overcome the eurozone crisis,
rebouncing of US economic growth and sustaining
the domestic demand in emerging and developing
economies, it was expected that global output
would increase in 2012.
Different macroeconomic indicators for the next
fiscal year and over the medium term have been
updated in view of continued satisfactory
performance in revenue collection, growth in
agriculture sector, investment in infrastructure
including power, exchange rate stability and
containment of inflationary pressure.
In the Medium Term Macroeconomic Framework,
real GDP growth has been estimated at 7.20
percent for FY 2012-13, 7.60 percent for FY
2013-14, 8.00 percent for FY 2014-15 and 9.10
percent for FY 2015-16 respectively. It is expected
that investment will increase from 25.40 percent of
GDP in FY 2011-12 to 33.70 percent in FY 2016-17
where private and public investment will stand at
25.20 percent and 8.50 percent respectively. On
the other hand, domestic savings is expected to
increase to 22.40 percent from 19.60 percent and
national savings will go up from 29.40 percent to
32.80 percent in the medium term.
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Development of agriculture sector including that of
power, energy and communication sectors are
crucial for achieving the desired growth of GDP.
Undertaking initiatives as envisaged in the
roadmap for power, exploring new gas deposits to
meet existing energy demand and utilising
renewable energy will ensure investment-friendly
environment in power and energy sector. It is also
expected that infrastructure deficit will be removed
by reinvigorating public-Private Partnership (PPP)
initiatives in the development of communication
sector and efficient and timely implementation of
Annual Development Program. In order to ensure
proper implementation of projects to be taken up
under PPP, a scheme has been worked out and a
set of policies and guidelines have been approved
by the Government.
In agriculture sector, there was a consistent and
positive growth over the last three years. Huge
government support such as subsidy, power
supply for irrigation, flow of agricultural credit,
innovation of new variety of salinity tolerant seed
and weather, and increasing assistance to
agro-based industries contributed significantly in
achieving sustainable growth in agriculture sector.
All these activities will continue which is expected
to support sustainable agricultural growth.
The estimated government expenditure stood at
16.50 percent of GDP in FY 2011-12 which is
expected to be 18.40 percent in FY 2012-13. The
target for FY 2016-17 has been set at 20.60
percent of GDP. Against this, expenditure on
Annual Development Programme is planned to be
increased from 3.90 percent of GDP in FY 2011-12
to 7.00 percent of GDP in FY 2016-17.
For financing the deficit, Government has planned
to reduce borrowing from the banking system. In
this regard, priority has been given to foreign
assistance which were committed and in pipe line.
For consecutive two years, Standard and Poors
(S&P) and Moodys retained the same sovereign
credit rating for Bangladesh. In their respective
lists rating for Bangladesh is BB- and Ba3.
According to this rating, in terms of credit
worthiness, Bangladesh is at par with the
Philippines, Indonesia and Vietnam. Such rating
will decrease the cost of debenture and import
payment and will help in attracting more foreign
investment.
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Containing inflation is a big challenge for
macroeconomic stability. In MTMF, inflation has
forecasted to bring down at 7.50 percent in the
upcoming fiscal year and that is expected to bring
out almost 5.00 percent. It was expected that the
steps taken to increase food production,
uninterrupted food supply and enhance food
security would also be helpful in reining on
inflation. Bangladesh Bank in its monetary policy
statement has laid emphasis on limiting money
supply and discouraging credit flow to the
unproductive sectors. Side by side, emphasis is
also given to ensure credit flow to productive and
priority sectors including agriculture and SME
sectors.
Financial recession in eurozone economies, one of
the major export markets of Bangladesh, has
affected its export sector slowing it down to 6.20
percent in FY 2011-12. However, it has been
possible to tackle the crisis through integrated
efforts of euro countries. Besides, initiatives on
exploring new markets and diversification of export
goods have already contributed to our economy,
though to a limited extent.
The remittances from expatriate Bangladeshi
workers grew by 10.24 percent during this year
which has been estimated to be 12.00 percent for
next years. It is expected that concerted efforts on
exploring new labour markets and intensive
diplomatic initiatives will increase expatriate
employment and contribute towards sustaining the
existing trends of remittance of flows. The current
account balance (CAB) decreased but in MTMF it
is expected to bring back in a positive territory.
Pressures on exchange rate and foreign exchange
reserve have been offset due to adoption of
effective fiscal and monetary policy stances. Both
the exchange rate and reserve situation remained
stable at the end of FY 2011-12. The goal of
maintaining macroeconomic stability together with
expected GDP growth and target of inflation will be
achieved if the future shocks from domestic as well
as external sectors could be tackled properly.
Digital Bangladesh
Its true meaning lies in proper application of
technology to implement all the commitments of
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Kiv nqQ Zvi dj mU KvwUq DVv me ne ej Avkv
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|<|< << < | | -|, <|<<< <| <
gy`vbxwZi dj Zv wbimb Kiv me nqQ| 2011-12
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=< |<| |<||< ||| <| < <|<
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the government regarding education, health,
employment and poverty alleviation. The main
purpose of this idea is to improve the standards of
living of the people by empowering them, ensuring
transparency and accountability in all spheres of
life, establishing good-governance and, above all,
bringing public services to their doorsteps through
the most effective use of technology. In short,
Digital Bangladesh is a happy prosperous and
enlightened Bangladesh, which is free from
hunger, poverty, inequality and corruption and
belongs completely to its people and is driven
forward by digital technology.
Perspective Plan 2010-2021
The Government keeping in view the Golden
Jubilee of Independence has formulated
Bangladesh Perspective Planning 2010-2021,
in the light of Vision-2021 to attain a definite set of
objectives that relate to economic and social
development of Bangladesh. The document
reflects the hopes and aspirations of common
people which has been given the top priority and
incorporates the development philosophy of the
government, its longterm vision and strategic goals
of desired development. The fundamental
objective of this long term plan is to alleviate
poverty by achieving higher growth and to turn
Bangladesh into a medium income country where
poverty will be brought to the minimum and
regional disparity in the sphere of economic
development will be reduced significantly.
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cwZ cwiKbv 2010-2021
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74
percent in 2011 to 1.30 percent in 2012 but is
expected to rise to 1.50 percent in 2013. It has
been forecasted for eurozone to have sluggish
growth of -0.40 percent in 2012 which was 1.40
percent in 2011 and is expected to grow to 0.20
percent in 2013.
On the other hand, according to Asian
Development Outlook, October 2012, the dimming
global growth prospects and soft domestic
demand in the regions two largest economies are
slowing the pace of developing Asias expansion.
Growth was estimated to slide from 7.20 percent in
2011 to 6.10 percent in 2012, which was expected
to bounce back to register 6.70 percent growth in
2013.
Impressive Track Record of Bangladesh
Economy
Bangladeshs track record of achievements, in
different sectors and according to various
performance indicators, bear evidence that she is
making impressive and encouraging progress
towards attaining her goal of being a middle
income country by 2021. Bangladesh was able to
accelerate her GDP growth from under 4.00
percent per year to over 6.00 percent within a span
of two decades. Our country has been able to
make commendable transition from a
predominantly aid-dependent economy to a
trading nation. The combined net foreign
exchange earnings from export of goods and
remittance are at present about fifteen times more
than the aid we receive annually.
Bangladesh has established herself as the second
largest exporter of apparels in the world, after
China; our shipbuilding, footwear, pharmaceuticals
and other non-traditional exports are showing
encouraging signs. Our farmers have increased
food grains production by more than three fold
since independence enabling Bangladesh to more
towards food security. Our economy has been able
to demonstrate impressive resilience in the face of
multiple global and financial crisis. Bangladeshs
track record in attaining key Millennium
Development Goals (MDGs) including in the areas
of poverty alleviation, gender parity, and access to
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Directors Report
to the Shareholders
Bismillahir Rahmanir Rahim
Respected Shareholders
Assalamu Alaikum
On behalf of the Board of Directors, I am indeed
delighted to present before you the sixth Annual
Report of Agrani Bank Limited. The report
evaluates and analyzes banks overall operational
performance of 2012 compared to that of 2011. I
would request you to read the information and
analyses in conjunction with the audited financial
statements presented herewith. The report also
presents an overview of the global economic
scenario and the performance of Bangladesh
Economy to put in perspective the banks
performance.
Global Economic Scenario
Immediately after the recovery from economic
crisis in 2010, the global economy is again facing
challenges as the recession re-emerged in the first
half of FY 2011-12 due to sovereign debt crisis in
several euro-zone economies and economic
instability in the USA. However, steps taken to
reinvigorate the USA economy and joint efforts to
protect euro economies from further effect of
recession have slightly watered down the effect in
the second half of 2011. Despite some
deceleration in the growth of the developed
economies and slight slowdown in economic
growth of emerging and developing countries
compared to the growth momentum in 2011;
economic growth of emerging and developing
countries remains fairly strong.
According to World Economic Outlook (WEO),
October 2012 of IMF, despite that the world
economic growth slowed to 3.30 percent in 2012
from 3.80 percent in 2011, it is projected to rise to
3.60 percent in 2013. Growth of high income
countries would deteriorate further from 1.60
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debt) |< |<|< =< <<|< |< |<
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KvUvbv me nqQ| 2011 mvji wZxqva hyivi
<||< |*||< =< #<| +< <||< <|
g`vi cfve _K ivi Rb h mwwjZ cPv MnY Kiv
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health and education has received high global
acclaim.
These aforesaid achievements were possible
through a combination of factors: supportive
government policies and targeted resource
allocation; the hard work of farmers and workers at
home and abroad, contribution of the private
sector and our vibrant entrepreneurial class,
proactive role of our non-government actors
including in areas of disbursement of micro-credit,
development of micro-enterprises and raising
consciousness about economic and social issues;
target support provided by development partners.
Macroeconomic Scenario of Bangladesh
Economic Growth
Although the growth of Bangladesh economy
slowed down in the context of negative growth in
world trade at the beginning of the global financial
crisis in FY 2008-09, next year this growth
bounced back and average growth remained
above 6.00 percent in the last three years.
According to BBS, GDP grew to 6.71 percent in FY
2010-11 and the estimated GDP growth rate for FY
2011-12 is 6.32 percent. However, because of high
base effect induced by more than 5.00 percent
growth in agriculture sector during the last two
years, the growth of FY 2011-12 dipped a little
which is still satisfactory. Alongside, substantial
growth in industry and service sector has
contributed to overall GDP growth. In FY2011-12,
growth in agriculture, industry and service sectors
have estimated to 2.53 percent, 9.47 percent and
6.06 percent respectively. This year GDP and GNI
per capita stood at US$ 772 and US$ 848 which
were US$ 748 and US$ 816 respectively in the last
fiscal year.
Savings and Investment
Estimated domestic savings slightly increased
from 19.30 percent of GDP in FY 2010-11 to 19.40
percent of GDP in FY 2011-12. Investment in FY
2011-12 also showed similar feature with a slight
increase and stood at 25.40 percent of GDP in FY
2011-12 from 25.20 percent of GDP in FY2010-11.
Of which the share of private investment stood at
19.10 percent of GDP while that of public
investment was 6.30 percent in FY 2011-12. In FY
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2010-11, the private and the public sector investments
were 19.50 percent and 5.60 percent of GDP
respectively. Major initiatives of the Government
implemented in infrastructure sector including power
and reduction in cost of doing business helped create
investment-friendly environment. In addition to this,
because of satisfactory growth of remittances, national
savings in FY 2011-12 upturned to 29.40 percent of GDP
from 28.80 percent of GDP in the previous year.
Inflation
The 12 month average inflation rate reached to
10.62 percent in FY 2011-12 which was 8.80
percent in FY2010-11. Oil and food inflation in
global market and excessive credit flows to
unproductive sectors were mainly responsible for
this upturn. Inflation on point to point basis in June
2012 stood at 8.56 percent which was 10.49
percent in March 2011. From the trend analysis of
inflation in Bangladesh, it is clear that in the first
half of FY 2011- 2012 general inflation went up
because of food inflation. However, at the end of
FY2011-12, non-food inflation was the key factor in
pushing general inflation upward. At this point in
time, food inflation recorded to 7.08 (monthly rate,
point to point basis) percent from about 13.00
percent in the same month of FY2010-11.
Satisfactory food production and supply of
essential commodities including demand
management through Open Market Sale (OMS) of
the essential commodities and sufficient stock of
food grains contributed to the efforts of pulling
down food inflation. On the other hand, there was
a non-food inflationary pressure due to price hike
in international market, depreciation in exchange
rate and adjustment of oil price. In order to contain
inflation, the Government has undertaken
necessary steps by forging better coordination
between fiscal and monetary policies. Although
there was a pressure of oil price adjustment on
food price, it was transitory. It is expected that
actions like discouraging credit flows to
unproductive sector alongside adopting restrained
and effective monetary policy will reduce the
inflationary pressure.
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Fiscal Situation
Revenue Earning
A target for revenue receipt was set at Tk.1,18,385
crore (12.94 percent of GDP) in FY 2011-12 of
which NBR tax revenue accounted for Tk. 91,870
crore (10.00 percent of GDP), non-NBR revenue,
Tk. 3,915 crore (0.40 percent of GDP) and non-tax
revenue Tk. 22,600 crore (2.47 percent of GDP).
Against these targets, tax revenue from NBR
sources stood at Tk. 91,597 crore while revenue
receipts from non-NBR source and non-tax
revenue receipts were Tk. 3,633 crore and Tk.
18,550 core respectively in FY 2011-12. Total
revenue receipts increased by 19.53 percent from
Tk. 95,188 crore in FY 2010-11 to Tk. 1,13,781
crore in FY 2011-12.
Monetary and Financial Sector
Following the global financial crisis, monetary
policy stance was accommodative in FY2010-11
which has been adjusted in FY 2011-12 consistent
with the changes in the global and domestic
economic scenario. The monetary policy of FY
2011-12 was formulated to maintain a restrained
money supply and credit growth to manage the
pressure arising from a number of factors including
the lagged effect of high domestic credit growth in
the previous year, high inflation transmitted
through global price hike of essential commodities
including food items and huge borrowing from
banking system to meet government expenditure.
The restrained monetary policy was adopted to
ensure continued support for adequate credit flows
to the productive and priority sectors including
agriculture and SME, while controlling money
supply and credit to unproductive sectors. To
downturn the inflation into a tolerable level
Bangladesh Bank has re-fixed the policy rate of
REPO and reverse REPO at 7.75 percent and 5.75
percent respectively by raising 225 points on 4
occasions.
Interest Rate
There was a maximum cap of 7.00 percent interest
rate on export credit fixed since January 10, 2004
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gy`v I Avw_K LvZ
| <<< |<<| <|< < <| |<||<
| |<-|-<<| <| <||
<|| -||| (accomodative monetary
policy)- || |<< || - <<|
eQii AfixY FYi DP cewi wejw^Z cfve (lag
effect) |||< <||< |-- | || -<<
<|+< |< ||< =<<| <|+ =< <|-t|
e`wkK gy`vi wb Atcevni dj jb`b fvimvg
DZ Pvc ckgbi j 2011-12 gy`v bxwZ cYxZ nq|
-| || -| < <|| < < |-| <
< | < <|| |< |||| <|<,
z` I gvSvwi D`vM LvZmn Drcv`bkxj Ges AMvwaKvi
| < <| <|| ||+<<< << <|<|
<<| - ||< -| <| || ||<
<||- <|< | <<<< | <
|| - -|< <| =< |<| <| -'-| | :
<| <|+ << <<|= -.-c < c.-c |
t|<|< << , -:-:: <<<< ||
-< -|< | - -| --c <| <|+ <<| -
my`i nvi
||<< | |< <|< |<| <| | -
-|< (flexible interest rate) ||||< <|
to facilitate export earnings. Recently, the cap on
interest rate on lending in all sectors other than
pre-shipment export credit and agricultural loans
has been withdrawn. This has brought
competitiveness among banks in fixing rate of
interest on lending in a rational manner. Banks are
allowed to differentiate interest rate up to a
maximum of 3.00 percent considering comparative
risk elements involved among borrowers in the
same lending category which they would promptly
expose in their respective website and inform to
the Bangladesh Bank.
External Sector
Export
In the wake of the recovery from global financial
recession, the export trade of Bangladesh made a
turnaround. However, sovereign credit crisis in
eurozone which is one of Bangladeshs main
export destinations is having its impact on export
trade. The export earnings of Bangladesh stood at
US$ 24,288 million in FY 2011-12, which was 5.90
percent higher than the export earnings (US$
22,928 million) of FY 2010-11. Export earnings in
FY 2011-12 by major categories increased mainly
for footwear (30.10 percent), engineering products
(21.10 percent), woven garments (13.90 percent)
and leather (10.80 percent). On the other hand,
export earnings dipped in respect of raw jute
(-25.40 percent), ceramic product (-10.20 percent)
and jute goods (-7.50 percent). Some of the
facilities under the incentive package declared by
the Government are still continuing. Assistance for
the entrepreneurs tiled New Market Exploration
Assistance announced under the incentive
package is also being extended this year for
diversification of goods and exploration of new
export market. In the meantime, export markets
have been created in Japan, Korea, South Africa
and Turkey. Besides, due to reduction of duties by
India, Bangladeshi commodities are having gainful
access to India.
Import
The total import payments (C&F) stood at US$
35,516 million during FY 2011-12, which was 5.50
<|<|< |-< - -|< |<|<< | -|-
<| | < - -|<< < || |<|< <<| -<
mvcwZKKvj mvweK cwiwwZ chvjvPbv Ki
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mg~n AvgvbZ I FYi my`/gybvdv nvi Zzjbvg~jK SzuwK
|<<| <| . | < <| << |<< =<
|<<| = - -|< ||<|< |-< -
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-| |<|| << |< <|| <|< ||< |< |<
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|< ||< New Market Exploration Assistance
=< |<| -||-< <|< -|| -| <|-
< #|< <||< |-< ||, <||<|,
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percent higher than the import payments of US$
33,657 million of the preceding year. Although
import payments increased at the beginning of this
fiscal year due to price hike of fuel in the global
market and higher demand of fuel for electricity
generation, it slowed down towards the end of the
year as import of unimportant goods were
discouraged. Analyzing the category of imported
goods, it is observed that, import payments for
industrial raw materials, petroleum and petroleum
products increased by 22.75 percent, 11.15
percent and 21.76 percent respectively, while
import of capital machinery and primary
commodities decreased by 13.73 percent and
25.79 percent respectively.
Overseas Employment and Remittance
Although export of manpower slowed down in the
first half of FY 2010-11 because of the impact of
global recession, particularly on the real estate
markets in the Middle East, and on industrial
labour demand in some South East Asian
economies such as Malaysia, it began to increase
from January 2011. The amount of remittances
increased by 6.03 percent to US$ 11,650.32
million in FY 2010-11 compared to that of the
previous year. Bangladesh earned remittances of
US$ 12,843.40 million in FY 2011-12 which was
10.24 percent higher than the amount of the
previous year. The Government has undertaken
several initiatives including diplomatic approaches
to explore new markets. As many as 6.91 lakh
workers went abroad in quest of jobs in FY
2011-12, which was 57.40 percent higher than the
number stood at in the previous year. To begin
manpower export in full swing to Africa, East
Europe and Latin America, a number of diplomatic
initiatives have been undertaken alongside
establishing new labour wings in several countries.
There is also an attempt to impart training on
various trades to create skilled labour force to
meet the demand of labour markets abroad.
Balance of Payment
Trade balance recorded a rise in deficit by 3.20
percent to US$ 7,995 million in the FY 2011-12 as
compared to the deficit of US$ 7,744 million during
FY 2010-11. During this period, the current
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wbirmvwnZ Kivi dj mvcwZK mgq Avg`vwb cew
-| |-|| < << << -| <| <,
FYc wbwi wfwZ 2012 mb g~jabx hcvwZ Ges
| |-||< < -| <<|= :.-
| =< -c.-> | |-|| < <|+
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e`wkK Kgmsvb I iwgUv
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|||- <<| - <| ||--| -| |<|
<||- - | <|| |<| -| | =
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account balance recorded a surplus of US$ 1,630
million as compared to the surplus of US$ 885
million of FY 2010-11.The deficit recorded in the
overall balance of payment stood at US$ 494
million in FY 2011-12, which was US$ 656 million
in FY 2010-11.
Medium Term Prospect of Bangladesh Economy
In the current context of domestic and global
economic scenario, a Medium-Term
Macroeconomic Framework (MTMF) for FY
2012-2016 has been worked out based on some
fundamental assumptions. Just after the recovery of
the world economy from yearlong global recession
during 2008-09, devastating tsunami and
destruction of nuclear power plant in Japan, the
ongoing sovereign debt crisis in several eurozone
economies and continuing economic instability and
high unemployment in the USA, have slowed the
pace of the world economic growth significantly. As
a result, the global output decreased in 2011.
However, afterwards, an integrated policy and
strategies to overcome the eurozone crisis,
rebouncing of US economic growth and sustaining
the domestic demand in emerging and developing
economies, it was expected that global output
would increase in 2012.
Different macroeconomic indicators for the next
fiscal year and over the medium term have been
updated in view of continued satisfactory
performance in revenue collection, growth in
agriculture sector, investment in infrastructure
including power, exchange rate stability and
containment of inflationary pressure.
In the Medium Term Macroeconomic Framework,
real GDP growth has been estimated at 7.20
percent for FY 2012-13, 7.60 percent for FY
2013-14, 8.00 percent for FY 2014-15 and 9.10
percent for FY 2015-16 respectively. It is expected
that investment will increase from 25.40 percent of
GDP in FY 2011-12 to 33.70 percent in FY 2016-17
where private and public investment will stand at
25.20 percent and 8.50 percent respectively. On
the other hand, domestic savings is expected to
increase to 22.40 percent from 19.60 percent and
national savings will go up from 29.40 percent to
32.80 percent in the medium term.
| ||< |<, <| <<| <<< = |-|<
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|<
evsjv`ki A_bxwZi gagqv`x mvebv
-| <<| |<<| <|< < <| <|<
|<||< | <| ||- |< << ||
<< <|-| ||< <|< <|||, (Medium
Term Macroeconomic Framework- MTMF,
2012-16) <<| - ----> |<||
|<-| << <||< <+|<< < || <|<|
|<- || < |<||<< |<- <- |<<, #<|
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|< |< < |<< |<| =<| -|< |-<
- -:: | <|< <|+ (global
output) < <| < #<| +< | <<
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| |< || =< |<<|| < | <||< -
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-
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Development of agriculture sector including that of
power, energy and communication sectors are
crucial for achieving the desired growth of GDP.
Undertaking initiatives as envisaged in the
roadmap for power, exploring new gas deposits to
meet existing energy demand and utilising
renewable energy will ensure investment-friendly
environment in power and energy sector. It is also
expected that infrastructure deficit will be removed
by reinvigorating public-Private Partnership (PPP)
initiatives in the development of communication
sector and efficient and timely implementation of
Annual Development Program. In order to ensure
proper implementation of projects to be taken up
under PPP, a scheme has been worked out and a
set of policies and guidelines have been approved
by the Government.
In agriculture sector, there was a consistent and
positive growth over the last three years. Huge
government support such as subsidy, power
supply for irrigation, flow of agricultural credit,
innovation of new variety of salinity tolerant seed
and weather, and increasing assistance to
agro-based industries contributed significantly in
achieving sustainable growth in agriculture sector.
All these activities will continue which is expected
to support sustainable agricultural growth.
The estimated government expenditure stood at
16.50 percent of GDP in FY 2011-12 which is
expected to be 18.40 percent in FY 2012-13. The
target for FY 2016-17 has been set at 20.60
percent of GDP. Against this, expenditure on
Annual Development Programme is planned to be
increased from 3.90 percent of GDP in FY 2011-12
to 7.00 percent of GDP in FY 2016-17.
For financing the deficit, Government has planned
to reduce borrowing from the banking system. In
this regard, priority has been given to foreign
assistance which were committed and in pipe line.
For consecutive two years, Standard and Poors
(S&P) and Moodys retained the same sovereign
credit rating for Bangladesh. In their respective
lists rating for Bangladesh is BB- and Ba3.
According to this rating, in terms of credit
worthiness, Bangladesh is at par with the
Philippines, Indonesia and Vietnam. Such rating
will decrease the cost of debenture and import
payment and will help in attracting more foreign
investment.
G cew ARb me ne g~jZ we`yr I Rvjvwb, hvMvhvM
<<||| =< <|< |< < |<| |<- |
<<|<< <<| <|| <|<= -, |||< ||--|
| < =< <|<| ||| <<-|<<
|< |<- < |||< ||--| < |<|| |<<<
|< < || <<| - <||<| |<
<<||<-<<<||< |-||< (|||) -|<
=| | =< =<#|< <||<< <|< <
<|<|< |< <<||| |
(infrastructure deficit) `~i Kiv me ne ej cZvkv
<<| - |||'< |<| |<< < < <r
- <<| -< |< <|<|< =<| <| -
=< |||| < |-|<| <<|< |- <<
<|< | | << <|+< <|<|<||-<| <| |
<|< | <# <|+ < <|< <<||<
-|| <- <| |< -|, < |<<|
|<- <<<|-, <|< < <|- <|+, |< |<-|<| <
jeYvZv mwnz exR Dveb Ges Kwl wfwK wki
|<<| -|| -| | <|< | <|+ |<<
chvq ivLv me nqQ| Kwl LvZ G Kvhgmg~n
|<<< <|- <|<< <| <|<| <# <|+ <|
<| |<| <|< < || <<| <|
<<||< < -::-:- <<<< ||< ||
(|||'< ::.c |) << -:--: <<<
|||'< :-.- | =< =| | -::-:-
<<< ||- |||'< -.: | | <<|<
|| |<|< <<| - =< < <||<<
<| < -::-:- <<<< |||'< .> |
<< -::-:- <<< |||'< -. | |<
|<<r| <
|| <| <|< <<| << - -|<
|<<r| < = |#|# <|<| |
<-|< -|| |$< <|<<< - - <
| |< -< |<<| <<|<< |<<|
<| , Standard & Poors (S & P) =<
Moodys <||-< << -'<< =<# |<
| <| ||<| < = <| ||<| S & P
=< Moodys <||-< BB- =< Ba 3 | -|
<< = <| <|| |<|<< ||<< |<
|<|< <||- |||#, #-||| < ||<
<| << =< <| =< <
< -| |< =< = |-|| < | -< -
<-|< |<||< |<| <|+ |<
Containing inflation is a big challenge for
macroeconomic stability. In MTMF, inflation has
forecasted to bring down at 7.50 percent in the
upcoming fiscal year and that is expected to bring
out almost 5.00 percent. It was expected that the
steps taken to increase food production,
uninterrupted food supply and enhance food
security would also be helpful in reining on
inflation. Bangladesh Bank in its monetary policy
statement has laid emphasis on limiting money
supply and discouraging credit flow to the
unproductive sectors. Side by side, emphasis is
also given to ensure credit flow to productive and
priority sectors including agriculture and SME
sectors.
Financial recession in eurozone economies, one of
the major export markets of Bangladesh, has
affected its export sector slowing it down to 6.20
percent in FY 2011-12. However, it has been
possible to tackle the crisis through integrated
efforts of euro countries. Besides, initiatives on
exploring new markets and diversification of export
goods have already contributed to our economy,
though to a limited extent.
The remittances from expatriate Bangladeshi
workers grew by 10.24 percent during this year
which has been estimated to be 12.00 percent for
next years. It is expected that concerted efforts on
exploring new labour markets and intensive
diplomatic initiatives will increase expatriate
employment and contribute towards sustaining the
existing trends of remittance of flows. The current
account balance (CAB) decreased but in MTMF it
is expected to bring back in a positive territory.
Pressures on exchange rate and foreign exchange
reserve have been offset due to adoption of
effective fiscal and monetary policy stances. Both
the exchange rate and reserve situation remained
stable at the end of FY 2011-12. The goal of
maintaining macroeconomic stability together with
expected GDP growth and target of inflation will be
achieved if the future shocks from domestic as well
as external sectors could be tackled properly.
Digital Bangladesh
Its true meaning lies in proper application of
technology to implement all the commitments of
<|+ < < |= -| ||<
| <|| MTMF-= ||| <<< ||< -|<
-| -.c | =< <|- | | c.
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||< <|| =< |- |<|| |<-|< <<|<
<<|<< -| <|<=- || | |<|
<|< < || <<| - -| || -| <
<|| < < |-| < < |
FYi hvMvb wbqYi cvkvcvwk Kwl, z` I gvSvwi
-| |- |-| =< ||<<|< | <
<| <|| ||+<<< << <|<| <<| -
<||-< <| <||<||< #<|| #|<
<||< <|< |< <|| |< <|+< <<
|<|< |< =< | -::-:- <<< :.-
| = < #<| < |<
`kjvi mwwjZ cqvm Ges G j h Kvhg MnY
Kiv nqQ Zvi dj mU KvwUq DVv me ne ej Avkv
<<| <| =|$|, <||< < < <||
<|<<< < <|<= -| | -| |<
|| <| -< -|
<||* <|-< <|+ | <<< :.-- |
-, <| <<| << - :-. | -|< <|+ |<
< <<| - <|- <|< -|<
|< <||< << | <-|<
<| <|+ < <||* <|-< <|<| <| <|< <
|| <<| - | |-|<< |<|< -|
< | <|< <| <|<< < MTMF-=
Kiv nqQ| mcwZ gy`vi wewbgq nvi I e`wkK gy`vi
|<|< << < | | -|, <|<<< <| <
gy`vbxwZi dj Zv wbimb Kiv me nqQ| 2011-12
<<< -|< |<|< -|<< |||| |< =
=< |<| |<||< ||| <| < <|<
<| < -|||< < <| < <|-t|<
|| |<|<| << ||< |||| <| <||-
KvwLZ cew ARb me ne ej Avkv Kiv hvq|
wWwRUvj evsjv`k
<|< |<< |< |< ||, | < -||<-
|<|- <<|<< < || << < =< <
the government regarding education, health,
employment and poverty alleviation. The main
purpose of this idea is to improve the standards of
living of the people by empowering them, ensuring
transparency and accountability in all spheres of
life, establishing good-governance and, above all,
bringing public services to their doorsteps through
the most effective use of technology. In short,
Digital Bangladesh is a happy prosperous and
enlightened Bangladesh, which is free from
hunger, poverty, inequality and corruption and
belongs completely to its people and is driven
forward by digital technology.
Perspective Plan 2010-2021
The Government keeping in view the Golden
Jubilee of Independence has formulated
Bangladesh Perspective Planning 2010-2021,
in the light of Vision-2021 to attain a definite set of
objectives that relate to economic and social
development of Bangladesh. The document
reflects the hopes and aspirations of common
people which has been given the top priority and
incorporates the development philosophy of the
government, its longterm vision and strategic goals
of desired development. The fundamental
objective of this long term plan is to alleviate
poverty by achieving higher growth and to turn
Bangladesh into a medium income country where
poverty will be brought to the minimum and
regional disparity in the sphere of economic
development will be reduced significantly.
< |<<| ||- ||| <||--<|<|< |
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|< |< |-< |<<||< || <<|,
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<||- -| |-+ < |||< <||-, < -
-< < |<< <, <| <|, -||<-, | <
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|< |< |-< =| <|<
cwZ cwiKbv 2010-2021
|<||< < |< | < <<|< '<||-
| |<<r| -:---:' |<< |<<r| -|
<< <||-< <|< < |||< <
||- < # <<r---: = |<<r|
-< <|| < < || -
<< ||< |<|<< ||-|<||< <|
||<<|< |- ||< -||-| - < <
| <<| - = -||-| <<r< |<
+ - < <|+ < |< -||<- |<|
=< --: |< < <||-< =<| < |<
`k cwiYZ Kiv hLvb `vwi` mewb chvq Aevb
<<< =< <|< |+|< << < <|<
Annual Report 2012 75
percent in 2011 to 1.30 percent in 2012 but is
expected to rise to 1.50 percent in 2013. It has
been forecasted for eurozone to have sluggish
growth of -0.40 percent in 2012 which was 1.40
percent in 2011 and is expected to grow to 0.20
percent in 2013.
On the other hand, according to Asian
Development Outlook, October 2012, the dimming
global growth prospects and soft domestic
demand in the regions two largest economies are
slowing the pace of developing Asias expansion.
Growth was estimated to slide from 7.20 percent in
2011 to 6.10 percent in 2012, which was expected
to bounce back to register 6.70 percent growth in
2013.
Impressive Track Record of Bangladesh
Economy
Bangladeshs track record of achievements, in
different sectors and according to various
performance indicators, bear evidence that she is
making impressive and encouraging progress
towards attaining her goal of being a middle
income country by 2021. Bangladesh was able to
accelerate her GDP growth from under 4.00
percent per year to over 6.00 percent within a span
of two decades. Our country has been able to
make commendable transition from a
predominantly aid-dependent economy to a
trading nation. The combined net foreign
exchange earnings from export of goods and
remittance are at present about fifteen times more
than the aid we receive annually.
Bangladesh has established herself as the second
largest exporter of apparels in the world, after
China; our shipbuilding, footwear, pharmaceuticals
and other non-traditional exports are showing
encouraging signs. Our farmers have increased
food grains production by more than three fold
since independence enabling Bangladesh to more
towards food security. Our economy has been able
to demonstrate impressive resilience in the face of
multiple global and financial crisis. Bangladeshs
track record in attaining key Millennium
Development Goals (MDGs) including in the areas
of poverty alleviation, gender parity, and access to
:.c | | -<|< <|| <<| - #<|
+ || |<|<< -|< <|| <<| -, <|
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Outlook, October 2012-= |<<|| ||--| -| |<|
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--: |< < =<| < |< - |< -<|<
<||-< =| ||<=< | ||< -
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Directors Report
to the Shareholders
Bismillahir Rahmanir Rahim
Respected Shareholders
Assalamu Alaikum
On behalf of the Board of Directors, I am indeed
delighted to present before you the sixth Annual
Report of Agrani Bank Limited. The report
evaluates and analyzes banks overall operational
performance of 2012 compared to that of 2011. I
would request you to read the information and
analyses in conjunction with the audited financial
statements presented herewith. The report also
presents an overview of the global economic
scenario and the performance of Bangladesh
Economy to put in perspective the banks
performance.
Global Economic Scenario
Immediately after the recovery from economic
crisis in 2010, the global economy is again facing
challenges as the recession re-emerged in the first
half of FY 2011-12 due to sovereign debt crisis in
several euro-zone economies and economic
instability in the USA. However, steps taken to
reinvigorate the USA economy and joint efforts to
protect euro economies from further effect of
recession have slightly watered down the effect in
the second half of 2011. Despite some
deceleration in the growth of the developed
economies and slight slowdown in economic
growth of emerging and developing countries
compared to the growth momentum in 2011;
economic growth of emerging and developing
countries remains fairly strong.
According to World Economic Outlook (WEO),
October 2012 of IMF, despite that the world
economic growth slowed to 3.30 percent in 2012
from 3.80 percent in 2011, it is projected to rise to
3.60 percent in 2013. Growth of high income
countries would deteriorate further from 1.60
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health and education has received high global
acclaim.
These aforesaid achievements were possible
through a combination of factors: supportive
government policies and targeted resource
allocation; the hard work of farmers and workers at
home and abroad, contribution of the private
sector and our vibrant entrepreneurial class,
proactive role of our non-government actors
including in areas of disbursement of micro-credit,
development of micro-enterprises and raising
consciousness about economic and social issues;
target support provided by development partners.
Macroeconomic Scenario of Bangladesh
Economic Growth
Although the growth of Bangladesh economy
slowed down in the context of negative growth in
world trade at the beginning of the global financial
crisis in FY 2008-09, next year this growth
bounced back and average growth remained
above 6.00 percent in the last three years.
According to BBS, GDP grew to 6.71 percent in FY
2010-11 and the estimated GDP growth rate for FY
2011-12 is 6.32 percent. However, because of high
base effect induced by more than 5.00 percent
growth in agriculture sector during the last two
years, the growth of FY 2011-12 dipped a little
which is still satisfactory. Alongside, substantial
growth in industry and service sector has
contributed to overall GDP growth. In FY2011-12,
growth in agriculture, industry and service sectors
have estimated to 2.53 percent, 9.47 percent and
6.06 percent respectively. This year GDP and GNI
per capita stood at US$ 772 and US$ 848 which
were US$ 748 and US$ 816 respectively in the last
fiscal year.
Savings and Investment
Estimated domestic savings slightly increased
from 19.30 percent of GDP in FY 2010-11 to 19.40
percent of GDP in FY 2011-12. Investment in FY
2011-12 also showed similar feature with a slight
increase and stood at 25.40 percent of GDP in FY
2011-12 from 25.20 percent of GDP in FY2010-11.
Of which the share of private investment stood at
19.10 percent of GDP while that of public
investment was 6.30 percent in FY 2011-12. In FY
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2010-11, the private and the public sector investments
were 19.50 percent and 5.60 percent of GDP
respectively. Major initiatives of the Government
implemented in infrastructure sector including power
and reduction in cost of doing business helped create
investment-friendly environment. In addition to this,
because of satisfactory growth of remittances, national
savings in FY 2011-12 upturned to 29.40 percent of GDP
from 28.80 percent of GDP in the previous year.
Inflation
The 12 month average inflation rate reached to
10.62 percent in FY 2011-12 which was 8.80
percent in FY2010-11. Oil and food inflation in
global market and excessive credit flows to
unproductive sectors were mainly responsible for
this upturn. Inflation on point to point basis in June
2012 stood at 8.56 percent which was 10.49
percent in March 2011. From the trend analysis of
inflation in Bangladesh, it is clear that in the first
half of FY 2011- 2012 general inflation went up
because of food inflation. However, at the end of
FY2011-12, non-food inflation was the key factor in
pushing general inflation upward. At this point in
time, food inflation recorded to 7.08 (monthly rate,
point to point basis) percent from about 13.00
percent in the same month of FY2010-11.
Satisfactory food production and supply of
essential commodities including demand
management through Open Market Sale (OMS) of
the essential commodities and sufficient stock of
food grains contributed to the efforts of pulling
down food inflation. On the other hand, there was
a non-food inflationary pressure due to price hike
in international market, depreciation in exchange
rate and adjustment of oil price. In order to contain
inflation, the Government has undertaken
necessary steps by forging better coordination
between fiscal and monetary policies. Although
there was a pressure of oil price adjustment on
food price, it was transitory. It is expected that
actions like discouraging credit flows to
unproductive sector alongside adopting restrained
and effective monetary policy will reduce the
inflationary pressure.
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Fiscal Situation
Revenue Earning
A target for revenue receipt was set at Tk.1,18,385
crore (12.94 percent of GDP) in FY 2011-12 of
which NBR tax revenue accounted for Tk. 91,870
crore (10.00 percent of GDP), non-NBR revenue,
Tk. 3,915 crore (0.40 percent of GDP) and non-tax
revenue Tk. 22,600 crore (2.47 percent of GDP).
Against these targets, tax revenue from NBR
sources stood at Tk. 91,597 crore while revenue
receipts from non-NBR source and non-tax
revenue receipts were Tk. 3,633 crore and Tk.
18,550 core respectively in FY 2011-12. Total
revenue receipts increased by 19.53 percent from
Tk. 95,188 crore in FY 2010-11 to Tk. 1,13,781
crore in FY 2011-12.
Monetary and Financial Sector
Following the global financial crisis, monetary
policy stance was accommodative in FY2010-11
which has been adjusted in FY 2011-12 consistent
with the changes in the global and domestic
economic scenario. The monetary policy of FY
2011-12 was formulated to maintain a restrained
money supply and credit growth to manage the
pressure arising from a number of factors including
the lagged effect of high domestic credit growth in
the previous year, high inflation transmitted
through global price hike of essential commodities
including food items and huge borrowing from
banking system to meet government expenditure.
The restrained monetary policy was adopted to
ensure continued support for adequate credit flows
to the productive and priority sectors including
agriculture and SME, while controlling money
supply and credit to unproductive sectors. To
downturn the inflation into a tolerable level
Bangladesh Bank has re-fixed the policy rate of
REPO and reverse REPO at 7.75 percent and 5.75
percent respectively by raising 225 points on 4
occasions.
Interest Rate
There was a maximum cap of 7.00 percent interest
rate on export credit fixed since January 10, 2004
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to facilitate export earnings. Recently, the cap on
interest rate on lending in all sectors other than
pre-shipment export credit and agricultural loans
has been withdrawn. This has brought
competitiveness among banks in fixing rate of
interest on lending in a rational manner. Banks are
allowed to differentiate interest rate up to a
maximum of 3.00 percent considering comparative
risk elements involved among borrowers in the
same lending category which they would promptly
expose in their respective website and inform to
the Bangladesh Bank.
External Sector
Export
In the wake of the recovery from global financial
recession, the export trade of Bangladesh made a
turnaround. However, sovereign credit crisis in
eurozone which is one of Bangladeshs main
export destinations is having its impact on export
trade. The export earnings of Bangladesh stood at
US$ 24,288 million in FY 2011-12, which was 5.90
percent higher than the export earnings (US$
22,928 million) of FY 2010-11. Export earnings in
FY 2011-12 by major categories increased mainly
for footwear (30.10 percent), engineering products
(21.10 percent), woven garments (13.90 percent)
and leather (10.80 percent). On the other hand,
export earnings dipped in respect of raw jute
(-25.40 percent), ceramic product (-10.20 percent)
and jute goods (-7.50 percent). Some of the
facilities under the incentive package declared by
the Government are still continuing. Assistance for
the entrepreneurs tiled New Market Exploration
Assistance announced under the incentive
package is also being extended this year for
diversification of goods and exploration of new
export market. In the meantime, export markets
have been created in Japan, Korea, South Africa
and Turkey. Besides, due to reduction of duties by
India, Bangladeshi commodities are having gainful
access to India.
Import
The total import payments (C&F) stood at US$
35,516 million during FY 2011-12, which was 5.50
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percent higher than the import payments of US$
33,657 million of the preceding year. Although
import payments increased at the beginning of this
fiscal year due to price hike of fuel in the global
market and higher demand of fuel for electricity
generation, it slowed down towards the end of the
year as import of unimportant goods were
discouraged. Analyzing the category of imported
goods, it is observed that, import payments for
industrial raw materials, petroleum and petroleum
products increased by 22.75 percent, 11.15
percent and 21.76 percent respectively, while
import of capital machinery and primary
commodities decreased by 13.73 percent and
25.79 percent respectively.
Overseas Employment and Remittance
Although export of manpower slowed down in the
first half of FY 2010-11 because of the impact of
global recession, particularly on the real estate
markets in the Middle East, and on industrial
labour demand in some South East Asian
economies such as Malaysia, it began to increase
from January 2011. The amount of remittances
increased by 6.03 percent to US$ 11,650.32
million in FY 2010-11 compared to that of the
previous year. Bangladesh earned remittances of
US$ 12,843.40 million in FY 2011-12 which was
10.24 percent higher than the amount of the
previous year. The Government has undertaken
several initiatives including diplomatic approaches
to explore new markets. As many as 6.91 lakh
workers went abroad in quest of jobs in FY
2011-12, which was 57.40 percent higher than the
number stood at in the previous year. To begin
manpower export in full swing to Africa, East
Europe and Latin America, a number of diplomatic
initiatives have been undertaken alongside
establishing new labour wings in several countries.
There is also an attempt to impart training on
various trades to create skilled labour force to
meet the demand of labour markets abroad.
Balance of Payment
Trade balance recorded a rise in deficit by 3.20
percent to US$ 7,995 million in the FY 2011-12 as
compared to the deficit of US$ 7,744 million during
FY 2010-11. During this period, the current
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account balance recorded a surplus of US$ 1,630
million as compared to the surplus of US$ 885
million of FY 2010-11.The deficit recorded in the
overall balance of payment stood at US$ 494
million in FY 2011-12, which was US$ 656 million
in FY 2010-11.
Medium Term Prospect of Bangladesh Economy
In the current context of domestic and global
economic scenario, a Medium-Term
Macroeconomic Framework (MTMF) for FY
2012-2016 has been worked out based on some
fundamental assumptions. Just after the recovery of
the world economy from yearlong global recession
during 2008-09, devastating tsunami and
destruction of nuclear power plant in Japan, the
ongoing sovereign debt crisis in several eurozone
economies and continuing economic instability and
high unemployment in the USA, have slowed the
pace of the world economic growth significantly. As
a result, the global output decreased in 2011.
However, afterwards, an integrated policy and
strategies to overcome the eurozone crisis,
rebouncing of US economic growth and sustaining
the domestic demand in emerging and developing
economies, it was expected that global output
would increase in 2012.
Different macroeconomic indicators for the next
fiscal year and over the medium term have been
updated in view of continued satisfactory
performance in revenue collection, growth in
agriculture sector, investment in infrastructure
including power, exchange rate stability and
containment of inflationary pressure.
In the Medium Term Macroeconomic Framework,
real GDP growth has been estimated at 7.20
percent for FY 2012-13, 7.60 percent for FY
2013-14, 8.00 percent for FY 2014-15 and 9.10
percent for FY 2015-16 respectively. It is expected
that investment will increase from 25.40 percent of
GDP in FY 2011-12 to 33.70 percent in FY 2016-17
where private and public investment will stand at
25.20 percent and 8.50 percent respectively. On
the other hand, domestic savings is expected to
increase to 22.40 percent from 19.60 percent and
national savings will go up from 29.40 percent to
32.80 percent in the medium term.
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Development of agriculture sector including that of
power, energy and communication sectors are
crucial for achieving the desired growth of GDP.
Undertaking initiatives as envisaged in the
roadmap for power, exploring new gas deposits to
meet existing energy demand and utilising
renewable energy will ensure investment-friendly
environment in power and energy sector. It is also
expected that infrastructure deficit will be removed
by reinvigorating public-Private Partnership (PPP)
initiatives in the development of communication
sector and efficient and timely implementation of
Annual Development Program. In order to ensure
proper implementation of projects to be taken up
under PPP, a scheme has been worked out and a
set of policies and guidelines have been approved
by the Government.
In agriculture sector, there was a consistent and
positive growth over the last three years. Huge
government support such as subsidy, power
supply for irrigation, flow of agricultural credit,
innovation of new variety of salinity tolerant seed
and weather, and increasing assistance to
agro-based industries contributed significantly in
achieving sustainable growth in agriculture sector.
All these activities will continue which is expected
to support sustainable agricultural growth.
The estimated government expenditure stood at
16.50 percent of GDP in FY 2011-12 which is
expected to be 18.40 percent in FY 2012-13. The
target for FY 2016-17 has been set at 20.60
percent of GDP. Against this, expenditure on
Annual Development Programme is planned to be
increased from 3.90 percent of GDP in FY 2011-12
to 7.00 percent of GDP in FY 2016-17.
For financing the deficit, Government has planned
to reduce borrowing from the banking system. In
this regard, priority has been given to foreign
assistance which were committed and in pipe line.
For consecutive two years, Standard and Poors
(S&P) and Moodys retained the same sovereign
credit rating for Bangladesh. In their respective
lists rating for Bangladesh is BB- and Ba3.
According to this rating, in terms of credit
worthiness, Bangladesh is at par with the
Philippines, Indonesia and Vietnam. Such rating
will decrease the cost of debenture and import
payment and will help in attracting more foreign
investment.
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Containing inflation is a big challenge for
macroeconomic stability. In MTMF, inflation has
forecasted to bring down at 7.50 percent in the
upcoming fiscal year and that is expected to bring
out almost 5.00 percent. It was expected that the
steps taken to increase food production,
uninterrupted food supply and enhance food
security would also be helpful in reining on
inflation. Bangladesh Bank in its monetary policy
statement has laid emphasis on limiting money
supply and discouraging credit flow to the
unproductive sectors. Side by side, emphasis is
also given to ensure credit flow to productive and
priority sectors including agriculture and SME
sectors.
Financial recession in eurozone economies, one of
the major export markets of Bangladesh, has
affected its export sector slowing it down to 6.20
percent in FY 2011-12. However, it has been
possible to tackle the crisis through integrated
efforts of euro countries. Besides, initiatives on
exploring new markets and diversification of export
goods have already contributed to our economy,
though to a limited extent.
The remittances from expatriate Bangladeshi
workers grew by 10.24 percent during this year
which has been estimated to be 12.00 percent for
next years. It is expected that concerted efforts on
exploring new labour markets and intensive
diplomatic initiatives will increase expatriate
employment and contribute towards sustaining the
existing trends of remittance of flows. The current
account balance (CAB) decreased but in MTMF it
is expected to bring back in a positive territory.
Pressures on exchange rate and foreign exchange
reserve have been offset due to adoption of
effective fiscal and monetary policy stances. Both
the exchange rate and reserve situation remained
stable at the end of FY 2011-12. The goal of
maintaining macroeconomic stability together with
expected GDP growth and target of inflation will be
achieved if the future shocks from domestic as well
as external sectors could be tackled properly.
Digital Bangladesh
Its true meaning lies in proper application of
technology to implement all the commitments of
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Kiv nqQ Zvi dj mU KvwUq DVv me ne ej Avkv
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|<|< << < | | -|, <|<<< <| <
gy`vbxwZi dj Zv wbimb Kiv me nqQ| 2011-12
<<< -|< |<|< -|<< |||| |< =
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the government regarding education, health,
employment and poverty alleviation. The main
purpose of this idea is to improve the standards of
living of the people by empowering them, ensuring
transparency and accountability in all spheres of
life, establishing good-governance and, above all,
bringing public services to their doorsteps through
the most effective use of technology. In short,
Digital Bangladesh is a happy prosperous and
enlightened Bangladesh, which is free from
hunger, poverty, inequality and corruption and
belongs completely to its people and is driven
forward by digital technology.
Perspective Plan 2010-2021
The Government keeping in view the Golden
Jubilee of Independence has formulated
Bangladesh Perspective Planning 2010-2021,
in the light of Vision-2021 to attain a definite set of
objectives that relate to economic and social
development of Bangladesh. The document
reflects the hopes and aspirations of common
people which has been given the top priority and
incorporates the development philosophy of the
government, its longterm vision and strategic goals
of desired development. The fundamental
objective of this long term plan is to alleviate
poverty by achieving higher growth and to turn
Bangladesh into a medium income country where
poverty will be brought to the minimum and
regional disparity in the sphere of economic
development will be reduced significantly.
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cwZ cwiKbv 2010-2021
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76
percent in 2011 to 1.30 percent in 2012 but is
expected to rise to 1.50 percent in 2013. It has
been forecasted for eurozone to have sluggish
growth of -0.40 percent in 2012 which was 1.40
percent in 2011 and is expected to grow to 0.20
percent in 2013.
On the other hand, according to Asian
Development Outlook, October 2012, the dimming
global growth prospects and soft domestic
demand in the regions two largest economies are
slowing the pace of developing Asias expansion.
Growth was estimated to slide from 7.20 percent in
2011 to 6.10 percent in 2012, which was expected
to bounce back to register 6.70 percent growth in
2013.
Impressive Track Record of Bangladesh
Economy
Bangladeshs track record of achievements, in
different sectors and according to various
performance indicators, bear evidence that she is
making impressive and encouraging progress
towards attaining her goal of being a middle
income country by 2021. Bangladesh was able to
accelerate her GDP growth from under 4.00
percent per year to over 6.00 percent within a span
of two decades. Our country has been able to
make commendable transition from a
predominantly aid-dependent economy to a
trading nation. The combined net foreign
exchange earnings from export of goods and
remittance are at present about fifteen times more
than the aid we receive annually.
Bangladesh has established herself as the second
largest exporter of apparels in the world, after
China; our shipbuilding, footwear, pharmaceuticals
and other non-traditional exports are showing
encouraging signs. Our farmers have increased
food grains production by more than three fold
since independence enabling Bangladesh to more
towards food security. Our economy has been able
to demonstrate impressive resilience in the face of
multiple global and financial crisis. Bangladeshs
track record in attaining key Millennium
Development Goals (MDGs) including in the areas
of poverty alleviation, gender parity, and access to
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Directors Report
to the Shareholders
Bismillahir Rahmanir Rahim
Respected Shareholders
Assalamu Alaikum
On behalf of the Board of Directors, I am indeed
delighted to present before you the sixth Annual
Report of Agrani Bank Limited. The report
evaluates and analyzes banks overall operational
performance of 2012 compared to that of 2011. I
would request you to read the information and
analyses in conjunction with the audited financial
statements presented herewith. The report also
presents an overview of the global economic
scenario and the performance of Bangladesh
Economy to put in perspective the banks
performance.
Global Economic Scenario
Immediately after the recovery from economic
crisis in 2010, the global economy is again facing
challenges as the recession re-emerged in the first
half of FY 2011-12 due to sovereign debt crisis in
several euro-zone economies and economic
instability in the USA. However, steps taken to
reinvigorate the USA economy and joint efforts to
protect euro economies from further effect of
recession have slightly watered down the effect in
the second half of 2011. Despite some
deceleration in the growth of the developed
economies and slight slowdown in economic
growth of emerging and developing countries
compared to the growth momentum in 2011;
economic growth of emerging and developing
countries remains fairly strong.
According to World Economic Outlook (WEO),
October 2012 of IMF, despite that the world
economic growth slowed to 3.30 percent in 2012
from 3.80 percent in 2011, it is projected to rise to
3.60 percent in 2013. Growth of high income
countries would deteriorate further from 1.60
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debt) |< |<|< =< <<|< |< |<
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KvUvbv me nqQ| 2011 mvji wZxqva hyivi
<||< |*||< =< #<| +< <||< <|
g`vi cfve _K ivi Rb h mwwjZ cPv MnY Kiv
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health and education has received high global
acclaim.
These aforesaid achievements were possible
through a combination of factors: supportive
government policies and targeted resource
allocation; the hard work of farmers and workers at
home and abroad, contribution of the private
sector and our vibrant entrepreneurial class,
proactive role of our non-government actors
including in areas of disbursement of micro-credit,
development of micro-enterprises and raising
consciousness about economic and social issues;
target support provided by development partners.
Macroeconomic Scenario of Bangladesh
Economic Growth
Although the growth of Bangladesh economy
slowed down in the context of negative growth in
world trade at the beginning of the global financial
crisis in FY 2008-09, next year this growth
bounced back and average growth remained
above 6.00 percent in the last three years.
According to BBS, GDP grew to 6.71 percent in FY
2010-11 and the estimated GDP growth rate for FY
2011-12 is 6.32 percent. However, because of high
base effect induced by more than 5.00 percent
growth in agriculture sector during the last two
years, the growth of FY 2011-12 dipped a little
which is still satisfactory. Alongside, substantial
growth in industry and service sector has
contributed to overall GDP growth. In FY2011-12,
growth in agriculture, industry and service sectors
have estimated to 2.53 percent, 9.47 percent and
6.06 percent respectively. This year GDP and GNI
per capita stood at US$ 772 and US$ 848 which
were US$ 748 and US$ 816 respectively in the last
fiscal year.
Savings and Investment
Estimated domestic savings slightly increased
from 19.30 percent of GDP in FY 2010-11 to 19.40
percent of GDP in FY 2011-12. Investment in FY
2011-12 also showed similar feature with a slight
increase and stood at 25.40 percent of GDP in FY
2011-12 from 25.20 percent of GDP in FY2010-11.
Of which the share of private investment stood at
19.10 percent of GDP while that of public
investment was 6.30 percent in FY 2011-12. In FY
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2010-11, the private and the public sector investments
were 19.50 percent and 5.60 percent of GDP
respectively. Major initiatives of the Government
implemented in infrastructure sector including power
and reduction in cost of doing business helped create
investment-friendly environment. In addition to this,
because of satisfactory growth of remittances, national
savings in FY 2011-12 upturned to 29.40 percent of GDP
from 28.80 percent of GDP in the previous year.
Inflation
The 12 month average inflation rate reached to
10.62 percent in FY 2011-12 which was 8.80
percent in FY2010-11. Oil and food inflation in
global market and excessive credit flows to
unproductive sectors were mainly responsible for
this upturn. Inflation on point to point basis in June
2012 stood at 8.56 percent which was 10.49
percent in March 2011. From the trend analysis of
inflation in Bangladesh, it is clear that in the first
half of FY 2011- 2012 general inflation went up
because of food inflation. However, at the end of
FY2011-12, non-food inflation was the key factor in
pushing general inflation upward. At this point in
time, food inflation recorded to 7.08 (monthly rate,
point to point basis) percent from about 13.00
percent in the same month of FY2010-11.
Satisfactory food production and supply of
essential commodities including demand
management through Open Market Sale (OMS) of
the essential commodities and sufficient stock of
food grains contributed to the efforts of pulling
down food inflation. On the other hand, there was
a non-food inflationary pressure due to price hike
in international market, depreciation in exchange
rate and adjustment of oil price. In order to contain
inflation, the Government has undertaken
necessary steps by forging better coordination
between fiscal and monetary policies. Although
there was a pressure of oil price adjustment on
food price, it was transitory. It is expected that
actions like discouraging credit flows to
unproductive sector alongside adopting restrained
and effective monetary policy will reduce the
inflationary pressure.
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Fiscal Situation
Revenue Earning
A target for revenue receipt was set at Tk.1,18,385
crore (12.94 percent of GDP) in FY 2011-12 of
which NBR tax revenue accounted for Tk. 91,870
crore (10.00 percent of GDP), non-NBR revenue,
Tk. 3,915 crore (0.40 percent of GDP) and non-tax
revenue Tk. 22,600 crore (2.47 percent of GDP).
Against these targets, tax revenue from NBR
sources stood at Tk. 91,597 crore while revenue
receipts from non-NBR source and non-tax
revenue receipts were Tk. 3,633 crore and Tk.
18,550 core respectively in FY 2011-12. Total
revenue receipts increased by 19.53 percent from
Tk. 95,188 crore in FY 2010-11 to Tk. 1,13,781
crore in FY 2011-12.
Monetary and Financial Sector
Following the global financial crisis, monetary
policy stance was accommodative in FY2010-11
which has been adjusted in FY 2011-12 consistent
with the changes in the global and domestic
economic scenario. The monetary policy of FY
2011-12 was formulated to maintain a restrained
money supply and credit growth to manage the
pressure arising from a number of factors including
the lagged effect of high domestic credit growth in
the previous year, high inflation transmitted
through global price hike of essential commodities
including food items and huge borrowing from
banking system to meet government expenditure.
The restrained monetary policy was adopted to
ensure continued support for adequate credit flows
to the productive and priority sectors including
agriculture and SME, while controlling money
supply and credit to unproductive sectors. To
downturn the inflation into a tolerable level
Bangladesh Bank has re-fixed the policy rate of
REPO and reverse REPO at 7.75 percent and 5.75
percent respectively by raising 225 points on 4
occasions.
Interest Rate
There was a maximum cap of 7.00 percent interest
rate on export credit fixed since January 10, 2004
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|<|< <<| - :,:-,-c <|| |<| (|||'< :-.>-
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<| ,>:c <|| |<| (|||'< .- |) =< <<
<|- <| --,: <|| |<| (|||'< -.--
|) ||< |<<| -::-:- <<< |-|<
- =|<|< << <| >:,c>- <|| |<|,
=|<|<-<|- << <| ,: <|| |<| =< <<
<|- <| :-,cc <|| |<| ||<<|< -::-:-
< << | <| |-< <|+ :>.c | <|
:,:,--: <|| |<|, <| -:-:: <<< |
>c,:-- <|| |<|
gy`v I Avw_K LvZ
| <<< |<<| <|< < <| |<||<
| |<-|-<<| <| <||
<|| -||| (accomodative monetary
policy)- || |<< || - <<|
eQii AfixY FYi DP cewi wejw^Z cfve (lag
effect) |||< <||< |-- | || -<<
<|+< |< ||< =<<| <|+ =< <|-t|
e`wkK gy`vi wb Atcevni dj jb`b fvimvg
DZ Pvc ckgbi j 2011-12 gy`v bxwZ cYxZ nq|
-| || -| < <|| < < |-| <
< | < <|| |< |||| <|<,
z` I gvSvwi D`vM LvZmn Drcv`bkxj Ges AMvwaKvi
| < <| <|| ||+<<< << <|<|
<<| - ||< -| <| || ||<
<||- <|< | <<<< | <
|| - -|< <| =< |<| <| -'-| | :
<| <|+ << <<|= -.-c < c.-c |
t|<|< << , -:-:: <<<< ||
-< -|< | - -| --c <| <|+ <<| -
my`i nvi
||<< | |< <|< |<| <| | -
-|< (flexible interest rate) ||||< <|
to facilitate export earnings. Recently, the cap on
interest rate on lending in all sectors other than
pre-shipment export credit and agricultural loans
has been withdrawn. This has brought
competitiveness among banks in fixing rate of
interest on lending in a rational manner. Banks are
allowed to differentiate interest rate up to a
maximum of 3.00 percent considering comparative
risk elements involved among borrowers in the
same lending category which they would promptly
expose in their respective website and inform to
the Bangladesh Bank.
External Sector
Export
In the wake of the recovery from global financial
recession, the export trade of Bangladesh made a
turnaround. However, sovereign credit crisis in
eurozone which is one of Bangladeshs main
export destinations is having its impact on export
trade. The export earnings of Bangladesh stood at
US$ 24,288 million in FY 2011-12, which was 5.90
percent higher than the export earnings (US$
22,928 million) of FY 2010-11. Export earnings in
FY 2011-12 by major categories increased mainly
for footwear (30.10 percent), engineering products
(21.10 percent), woven garments (13.90 percent)
and leather (10.80 percent). On the other hand,
export earnings dipped in respect of raw jute
(-25.40 percent), ceramic product (-10.20 percent)
and jute goods (-7.50 percent). Some of the
facilities under the incentive package declared by
the Government are still continuing. Assistance for
the entrepreneurs tiled New Market Exploration
Assistance announced under the incentive
package is also being extended this year for
diversification of goods and exploration of new
export market. In the meantime, export markets
have been created in Japan, Korea, South Africa
and Turkey. Besides, due to reduction of duties by
India, Bangladeshi commodities are having gainful
access to India.
Import
The total import payments (C&F) stood at US$
35,516 million during FY 2011-12, which was 5.50
<|<|< |-< - -|< |<|<< | -|-
<| | < - -|<< < || |<|< <<| -<
mvcwZKKvj mvweK cwiwwZ chvjvPbv Ki
|-| <|| (-. |) < <|< (<|
:. |) < - -|< |$| <|< < - -|<<
<| || |-|<< |+| -| - = -<
-|< |<|< <|<|< < |<|||< |<<
| - <| -< -|< <|<|<< -|< |<| |
<<< |-<-<< =<# | -|< <|<
mg~n AvgvbZ I FYi my`/gybvdv nvi Zzjbvg~jK SzuwK
|<<| <| . | < <| << |<< =<
|<<| = - -|< ||<|< |-< -
<<|# <| <<|< |||| <||- <|<<
<|- <<<
ewnt LvZ
ivwb
-| |<|| << |< <|| <|< ||< |< |<
<||-< <|||< -( <| <
<||-< <| <|| <||<- <<| #<| +<
|< |< ||<< << |<
<||-< <|| <||< << $ | -::-:-
<<< <|| c.> | <$ -||$ --,---
|| ||< |< <| -:-:: <<< | --,>--
|| ||< |< -::-:- <<< <| < <
| <|| | <|+ | < < ||< (:.>
|), <|< (.: |), #|=|||< ||
(-:.: |) =< |$| (:.- |) <||
<|+ - |-< <|| | (--c.- |),
|| (--.c |), |<||< (-:.-
|)- <| < <|+ -| <<|<
<|| |< -||< #t< ||< |-|
|<< < |< |<<| <|< <|- <
< <|<< < <||< << |-|
|< ||< New Market Exploration Assistance
=< |<| -||-< <|< -|| -| <|-
< #|< <||< |-< ||, <||<|,
-| ||<| < < <||-< < <||< <||<
| - =|$|, |< <||-< <| < <<
<+ -| <<| |<< <||< <| <$
Avg`vwb
-:-:: <<< |-|| < -:.-> | <|+
,:c- || ||< |< | -::-:-
percent higher than the import payments of US$
33,657 million of the preceding year. Although
import payments increased at the beginning of this
fiscal year due to price hike of fuel in the global
market and higher demand of fuel for electricity
generation, it slowed down towards the end of the
year as import of unimportant goods were
discouraged. Analyzing the category of imported
goods, it is observed that, import payments for
industrial raw materials, petroleum and petroleum
products increased by 22.75 percent, 11.15
percent and 21.76 percent respectively, while
import of capital machinery and primary
commodities decreased by 13.73 percent and
25.79 percent respectively.
Overseas Employment and Remittance
Although export of manpower slowed down in the
first half of FY 2010-11 because of the impact of
global recession, particularly on the real estate
markets in the Middle East, and on industrial
labour demand in some South East Asian
economies such as Malaysia, it began to increase
from January 2011. The amount of remittances
increased by 6.03 percent to US$ 11,650.32
million in FY 2010-11 compared to that of the
previous year. Bangladesh earned remittances of
US$ 12,843.40 million in FY 2011-12 which was
10.24 percent higher than the amount of the
previous year. The Government has undertaken
several initiatives including diplomatic approaches
to explore new markets. As many as 6.91 lakh
workers went abroad in quest of jobs in FY
2011-12, which was 57.40 percent higher than the
number stood at in the previous year. To begin
manpower export in full swing to Africa, East
Europe and Latin America, a number of diplomatic
initiatives have been undertaken alongside
establishing new labour wings in several countries.
There is also an attempt to impart training on
various trades to create skilled labour force to
meet the demand of labour markets abroad.
Balance of Payment
Trade balance recorded a rise in deficit by 3.20
percent to US$ 7,995 million in the FY 2011-12 as
compared to the deficit of US$ 7,744 million during
FY 2010-11. During this period, the current
<<< |-|| < c.c | <|+ c,c::
|| ||< |< -||$ |||< <||<
||| < <|+ =< || |<-<-<
||| < ||--| <|+< <|< | <<<< <<
|-|| < <|+ < < < < |-||
wbirmvwnZ Kivi dj mvcwZK mgq Avg`vwb cew
-| |-|| < << << -| <| <,
FYc wbwi wfwZ 2012 mb g~jabx hcvwZ Ges
| |-||< < -| <<|= :.-
| =< -c.-> | |-|| < <|+
|r< <||| --.-c |, ||| ::.:c |
< |||| -:.-: |
e`wkK Kgmsvb I iwgUv
-|< |< <| |<| |r < || =<
|||- <<| - <| ||--| -| |<|
<||- - | <|| |<| -| | =
<||* <|-< <|+ -| < |||< -::
<< | < -||$ -:-:: <<< <||*
<|- :. | <|+ ::,:c.- ||< |<
| <<<< <||* <|- <<| <<<<
| :.-- | <|+ :-,--.- ||
||< |< | <<< :.>: |
|<- << <| <<| <<<< | c-.-
| <| <<|< <||< |<
<|< | -- < |< |<<r| <|<|
<< #|< ||<|, < #<| < ||
||<<|< - - | <|| <|- << <<|<
<|< |=| << <<|< |||| <<| -
<||- -|<| # || - |<-
||--| < = <|< <|| - | |<<
|<| |< -| | -
e`wkK jb`b fvimvg
-::-:- <<< <|| ||< |<| .- |
<|+ -|$| -,>>c || ||< |<, <|
<<| <<< = ||< | -,--- || ||<
|< = | |-|< < -|$| :,:
account balance recorded a surplus of US$ 1,630
million as compared to the surplus of US$ 885
million of FY 2010-11.The deficit recorded in the
overall balance of payment stood at US$ 494
million in FY 2011-12, which was US$ 656 million
in FY 2010-11.
Medium Term Prospect of Bangladesh Economy
In the current context of domestic and global
economic scenario, a Medium-Term
Macroeconomic Framework (MTMF) for FY
2012-2016 has been worked out based on some
fundamental assumptions. Just after the recovery of
the world economy from yearlong global recession
during 2008-09, devastating tsunami and
destruction of nuclear power plant in Japan, the
ongoing sovereign debt crisis in several eurozone
economies and continuing economic instability and
high unemployment in the USA, have slowed the
pace of the world economic growth significantly. As
a result, the global output decreased in 2011.
However, afterwards, an integrated policy and
strategies to overcome the eurozone crisis,
rebouncing of US economic growth and sustaining
the domestic demand in emerging and developing
economies, it was expected that global output
would increase in 2012.
Different macroeconomic indicators for the next
fiscal year and over the medium term have been
updated in view of continued satisfactory
performance in revenue collection, growth in
agriculture sector, investment in infrastructure
including power, exchange rate stability and
containment of inflationary pressure.
In the Medium Term Macroeconomic Framework,
real GDP growth has been estimated at 7.20
percent for FY 2012-13, 7.60 percent for FY
2013-14, 8.00 percent for FY 2014-15 and 9.10
percent for FY 2015-16 respectively. It is expected
that investment will increase from 25.40 percent of
GDP in FY 2011-12 to 33.70 percent in FY 2016-17
where private and public investment will stand at
25.20 percent and 8.50 percent respectively. On
the other hand, domestic savings is expected to
increase to 22.40 percent from 19.60 percent and
national savings will go up from 29.40 percent to
32.80 percent in the medium term.
| ||< |<, <| <<| <<< = |-|<
< | --c || ||< |< -::-:-
<<< ||<< - |<| ||< |<| -|$|
->- || ||< |< <<| <<< ||<<
- |<| ||< |<| | :c: || ||<
|<
evsjv`ki A_bxwZi gagqv`x mvebv
-| <<| |<<| <|< < <| <|<
|<||< | <| ||- |< << ||
<< <|-| ||< <|< <|||, (Medium
Term Macroeconomic Framework- MTMF,
2012-16) <<| - ----> |<||
|<-| << <||< <+|<< < || <|<|
|<- || < |<||<< |<- <- |<<, #<|
+ |< |< <|| =< <<|<
|< |< < |<< |<| =<| -|< |-<
- -:: | <|< <|+ (global
output) < <| < #<| +< | <<
DiYi mwwjZ bxwZ Kkj MnY, hyivi A_bxwZZ
| |< || =< |<<|| < | <||< -
-< <| ||--| <||< |< <|<
-:- | |< <||< <|+ <|+ |< < || <<|
-
<| <| |-<< <|<|<||-< <|+, <|<
| <|<|<||-< <|+ <| <||, |<-- <<|||
| |<|| <|+, <-|< -|< |<| -|<< |||
<| |< || =< || < << <<|<
| ||| <<< =< <|- ||<
<|< < - -|||- <<| -
<|-| ||< <|< <||| ||| -:--:
<<< ||| <|+ -.- |, -:-:- <<<
-.: | =< =| | <|+ -:--:c
<<< ||- -. | =< -:c-:: <<< |
>.: | | -< <<| - =
|<|| -::-:- <<< |||'< | -c.-
| << <|+ -::-:- <<< .-
| -|$|< < <|| <<| -, <|< <
<<<||< |<|| -c.- | =< <<||< |<||
-.c | -|$| |< <| + <|
|||'< | :>.: | << < |- --.-
| =< || + |||'< ->.- | <<
-.- | | -< <<| -
Development of agriculture sector including that of
power, energy and communication sectors are
crucial for achieving the desired growth of GDP.
Undertaking initiatives as envisaged in the
roadmap for power, exploring new gas deposits to
meet existing energy demand and utilising
renewable energy will ensure investment-friendly
environment in power and energy sector. It is also
expected that infrastructure deficit will be removed
by reinvigorating public-Private Partnership (PPP)
initiatives in the development of communication
sector and efficient and timely implementation of
Annual Development Program. In order to ensure
proper implementation of projects to be taken up
under PPP, a scheme has been worked out and a
set of policies and guidelines have been approved
by the Government.
In agriculture sector, there was a consistent and
positive growth over the last three years. Huge
government support such as subsidy, power
supply for irrigation, flow of agricultural credit,
innovation of new variety of salinity tolerant seed
and weather, and increasing assistance to
agro-based industries contributed significantly in
achieving sustainable growth in agriculture sector.
All these activities will continue which is expected
to support sustainable agricultural growth.
The estimated government expenditure stood at
16.50 percent of GDP in FY 2011-12 which is
expected to be 18.40 percent in FY 2012-13. The
target for FY 2016-17 has been set at 20.60
percent of GDP. Against this, expenditure on
Annual Development Programme is planned to be
increased from 3.90 percent of GDP in FY 2011-12
to 7.00 percent of GDP in FY 2016-17.
For financing the deficit, Government has planned
to reduce borrowing from the banking system. In
this regard, priority has been given to foreign
assistance which were committed and in pipe line.
For consecutive two years, Standard and Poors
(S&P) and Moodys retained the same sovereign
credit rating for Bangladesh. In their respective
lists rating for Bangladesh is BB- and Ba3.
According to this rating, in terms of credit
worthiness, Bangladesh is at par with the
Philippines, Indonesia and Vietnam. Such rating
will decrease the cost of debenture and import
payment and will help in attracting more foreign
investment.
G cew ARb me ne g~jZ we`yr I Rvjvwb, hvMvhvM
<<||| =< <|< |< < |<| |<- |
<<|<< <<| <|| <|<= -, |||< ||--|
| < =< <|<| ||| <<-|<<
|< |<- < |||< ||--| < |<|| |<<<
|< < || <<| - <||<| |<
<<||<-<<<||< |-||< (|||) -|<
=| | =< =<#|< <||<< <|< <
<|<|< |< <<||| |
(infrastructure deficit) `~i Kiv me ne ej cZvkv
<<| - |||'< |<| |<< < < <r
- <<| -< |< <|<|< =<| <| -
=< |||| < |-|<| <<|< |- <<
<|< | | << <|+< <|<|<||-<| <| |
<|< | <# <|+ < <|< <<||<
-|| <- <| |< -|, < |<<|
|<- <<<|-, <|< < <|- <|+, |< |<-|<| <
jeYvZv mwnz exR Dveb Ges Kwl wfwK wki
|<<| -|| -| | <|< | <|+ |<<
chvq ivLv me nqQ| Kwl LvZ G Kvhgmg~n
|<<< <|- <|<< <| <|<| <# <|+ <|
<| |<| <|< < || <<| <|
<<||< < -::-:- <<<< ||< ||
(|||'< ::.c |) << -:--: <<<
|||'< :-.- | =< =| | -::-:-
<<< ||- |||'< -.: | | <<|<
|| |<|< <<| - =< < <||<<
<| < -::-:- <<<< |||'< .> |
<< -::-:- <<< |||'< -. | |<
|<<r| <
|| <| <|< <<| << - -|<
|<<r| < = |#|# <|<| |
<-|< -|| |$< <|<<< - - <
| |< -< |<<| <<|<< |<<|
<| , Standard & Poors (S & P) =<
Moodys <||-< << -'<< =<# |<
| <| ||<| < = <| ||<| S & P
=< Moodys <||-< BB- =< Ba 3 | -|
<< = <| <|| |<|<< ||<< |<
|<|< <||- |||#, #-||| < ||<
<| << =< <| =< <
< -| |< =< = |-|| < | -< -
<-|< |<||< |<| <|+ |<
Containing inflation is a big challenge for
macroeconomic stability. In MTMF, inflation has
forecasted to bring down at 7.50 percent in the
upcoming fiscal year and that is expected to bring
out almost 5.00 percent. It was expected that the
steps taken to increase food production,
uninterrupted food supply and enhance food
security would also be helpful in reining on
inflation. Bangladesh Bank in its monetary policy
statement has laid emphasis on limiting money
supply and discouraging credit flow to the
unproductive sectors. Side by side, emphasis is
also given to ensure credit flow to productive and
priority sectors including agriculture and SME
sectors.
Financial recession in eurozone economies, one of
the major export markets of Bangladesh, has
affected its export sector slowing it down to 6.20
percent in FY 2011-12. However, it has been
possible to tackle the crisis through integrated
efforts of euro countries. Besides, initiatives on
exploring new markets and diversification of export
goods have already contributed to our economy,
though to a limited extent.
The remittances from expatriate Bangladeshi
workers grew by 10.24 percent during this year
which has been estimated to be 12.00 percent for
next years. It is expected that concerted efforts on
exploring new labour markets and intensive
diplomatic initiatives will increase expatriate
employment and contribute towards sustaining the
existing trends of remittance of flows. The current
account balance (CAB) decreased but in MTMF it
is expected to bring back in a positive territory.
Pressures on exchange rate and foreign exchange
reserve have been offset due to adoption of
effective fiscal and monetary policy stances. Both
the exchange rate and reserve situation remained
stable at the end of FY 2011-12. The goal of
maintaining macroeconomic stability together with
expected GDP growth and target of inflation will be
achieved if the future shocks from domestic as well
as external sectors could be tackled properly.
Digital Bangladesh
Its true meaning lies in proper application of
technology to implement all the commitments of
<|+ < < |= -| ||<
| <|| MTMF-= ||| <<< ||< -|<
-| -.c | =< <|- | | c.
| <| ||< <|| <<| - ||
|< <| |- |- <|+ <<<|- <<|
||< <|| =< |- |<|| |<-|< <<|<
<<|<< -| <|<=- || | |<|
<|< < || <<| - -| || -| <
<|| < < |-| < < |
FYi hvMvb wbqYi cvkvcvwk Kwl, z` I gvSvwi
-| |- |-| =< ||<<|< | <
<| <|| ||+<<< << <|<| <<| -
<||-< <| <||<||< #<|| #|<
<||< <|< |< <|| |< <|+< <<
|<|< |< =< | -::-:- <<< :.-
| = < #<| < |<
`kjvi mwwjZ cqvm Ges G j h Kvhg MnY
Kiv nqQ Zvi dj mU KvwUq DVv me ne ej Avkv
<<| <| =|$|, <||< < < <||
<|<<< < <|<= -| | -| |<
|| <| -< -|
<||* <|-< <|+ | <<< :.-- |
-, <| <<| << - :-. | -|< <|+ |<
< <<| - <|- <|< -|<
|< <||< << | <-|<
<| <|+ < <||* <|-< <|<| <| <|< <
|| <<| - | |-|<< |<|< -|
< | <|< <| <|<< < MTMF-=
Kiv nqQ| mcwZ gy`vi wewbgq nvi I e`wkK gy`vi
|<|< << < | | -|, <|<<< <| <
gy`vbxwZi dj Zv wbimb Kiv me nqQ| 2011-12
<<< -|< |<|< -|<< |||| |< =
=< |<| |<||< ||| <| < <|<
<| < -|||< < <| < <|-t|<
|| |<|<| << ||< |||| <| <||-
KvwLZ cew ARb me ne ej Avkv Kiv hvq|
wWwRUvj evsjv`k
<|< |<< |< |< ||, | < -||<-
|<|- <<|<< < || << < =< <
the government regarding education, health,
employment and poverty alleviation. The main
purpose of this idea is to improve the standards of
living of the people by empowering them, ensuring
transparency and accountability in all spheres of
life, establishing good-governance and, above all,
bringing public services to their doorsteps through
the most effective use of technology. In short,
Digital Bangladesh is a happy prosperous and
enlightened Bangladesh, which is free from
hunger, poverty, inequality and corruption and
belongs completely to its people and is driven
forward by digital technology.
Perspective Plan 2010-2021
The Government keeping in view the Golden
Jubilee of Independence has formulated
Bangladesh Perspective Planning 2010-2021,
in the light of Vision-2021 to attain a definite set of
objectives that relate to economic and social
development of Bangladesh. The document
reflects the hopes and aspirations of common
people which has been given the top priority and
incorporates the development philosophy of the
government, its longterm vision and strategic goals
of desired development. The fundamental
objective of this long term plan is to alleviate
poverty by achieving higher growth and to turn
Bangladesh into a medium income country where
poverty will be brought to the minimum and
regional disparity in the sphere of economic
development will be reduced significantly.
< |<<| ||- ||| <||--<|<|< |
+ -| <|< |<< | << <
|< |< |-< |<<||< || <<|,
|< < | < -|<+| ||+ <<|,
| || <<| =< <||< < -|<|$|
< <| -| < , |||
<||- -| |-+ < |||< <||-, < -
-< < |<< <, <| <|, -||<-, | <
-|| <|<< | =< < - ||| <| |<
|< |< |-< =| <|<
cwZ cwiKbv 2010-2021
|<||< < |< | < <<|< '<||-
| |<<r| -:---:' |<< |<<r| -|
<< <||-< <|< < |||< <
||- < # <<r---: = |<<r|
-< <|| < < || -
<< ||< |<|<< ||-|<||< <|
||<<|< |- ||< -||-| - < <
| <<| - = -||-| <<r< |<
+ - < <|+ < |< -||<- |<|
=< --: |< < <||-< =<| < |<
`k cwiYZ Kiv hLvb `vwi` mewb chvq Aevb
<<< =< <|< |+|< << < <|<
Finance Minister A.M.A. Muhit, MP, is receiving right share and bonus share certificates of ABL from its Chairman,
Dr. Khondoker Bazlul Hoque and Managing Director & CEO Dr. Syed Abdul Hamid, FCA
Annual Report 2012 77
The plan contains necessary strategies to
overcome the challenges in terms of turning the
country into a medium income economy. The
major goals of this vision are: to accelerate the
growth rate up to 10 percent by 2021, to raise per
capita income up to US$ 2,000, to reduce the
number of population living under poverty line to
13.50 percent, to reduce the unemployment rate
into 15 percent, to increase annual per head
electricity consumption to 600 kilowatt hour and to
strengthen IT sector for building a Digital
Bangladesh.
Emergence of Agrani Bank limited
Agrani Bank Limited started its journey as a Public
Limited Company on 17 May 2007 and took over
the business, assets, liabilities, rights and
obligations of the former Agrani Bank, which
emerged as a Nationalized Commercial Bank in
1972, pursuant to the Bangladesh Banks
Nationalization Order 1972 (President's Order No.
26 of 1972), on a going concern basis through a
Vendor's Agreement. The Agreement was signed
between the Ministry of Finance, Government of
the People's Republic of Bangladesh on behalf of
ga Avqi `k icvii Pvj gvKvejv I Gi Rb
cqvRbxq Kkjmg~n iqQ G cwiKbvq| Gi cavb
jjv nQ: 2021 mvj bvMv` cew nvi 10 kZvsk
DbxZ Kiv, gv_vwcQy Avq 2,000 gvwKb Wjvi DbxZ Kiv,
`vwi` mxgvi wbP emevmKvix RbMYi msLv 13.50
kZvsk bvwgq Avbv, eKviZ nvi 15 kZvsk bvwgq
Avbv, evwlK gv_vwcQy we`yr eenvi 600 wKjvIqvU NUvq
DbxZ Kiv Ges wWwRUvj evsjv`k MVbi Rb Z_ chyw
eevK kwkvjx Kiv|
AMYx evsK wjwgUWi AvZcKvk
17 g 2007 ZvwiL AMYx evsK GKwU cvewjK wjwgUW
<||| |-< |<| << '| <|< ||'
| '| <|<'-=< <<|, -, -|, |<<|< <
KZZ AwaMnY Ki| 1972 mvj evsjv`k evsK mg~n
RvZxqKiY Av`k ej (cwmWUi AWvi bs 26, 1972
|) | <|< || - |<-< <| -
:c < -- | =<| < |< |< <|
MYcRvZx evsjv`k miKvii A_ gYvjq wQj AMYx
Asset Portfolio
The year-end asset portfolio scenarios of the bank in
2011 and 2012 are appended below:
Business Performance
a) Deposits
At the end of December 2012, the deposit of the bank
stood at Tk. 29,242.92 crore compared to Tk. 25,220.84
crore at the end of previous year leading to a
year-on-year growth in deposit of 15.95 percent. Given
the adverse economic scenario of the country during the
year under review, this growth rate is a remarkable
achievement.
In the prevailing situation, mobiliziation of deposits
became highly competitive and as a result, the average
cost of fund for the banks in the private sector increased
compared to that of the previous year. The bank,
therefore, decided to mobilize low cost fund. The deposit
mix of the bank as on 31 December 2012 was as
follows:
the former Agrani Bank and the Board of Directors
of the Bank on behalf of Agrani Bank Limited on 15
November 2007 with retrospective effect from 01
July 2007.
All shares of the bank are held by the Government
of the People's Republic of Bangladesh and 12
other shareholders (with one share each, the
qualification share required to become a director)
nominated by the Government.
The bank has 889 branches as of 31 December
2012 with no overseas branch. The bank has,
however, two at home and four in abroad named,
1) Agrani Equity and Investment Limited, 2) Agrani
SME Financing Company Limited, 3) Agrani
Exchange House Private Limited in Singapore, 4)
Agrani Remittance House Sdn., Bhd. in Kuala
Lumpur, Malaysia, 5) Agrani Remittance House
Canada Inc. in Canada and 6) Agrani Exchange
Company (Australia) Pty. Limited in Australia.
<|<-=< c Ges AMYx evsK wjwgUWi c wQj Gi
cwiPvjbv cwil`| GB AwaMnY KvhKi Kiv nq 1 RyjvB
2007 _K|
evsKi mg kqvii gvwjK MYcRvZx evsjv`k
miKvi Ges AviI 12 Rb kqvinvvi hviv miKvi KZK
gbvbxZ| GB 12 Rbi cZKB gv GKwU Ki kqvii
aviK hv cwiPvjKi hvMZvg~jK kqvii b~bZg
cwigvY|
-:- |< : |< < <|<< ||< | |
889wU| `k 2wU Ges we`k AewZ 4wU wbq AMYx
<|<< | ||<|| :| |<||||< <|||
iqQ h<|- :) '| #<#| =| #
||', -) '| ==# |#||* <|||
||', ) '| =?= -| |# ||,
|*|<', -) '| <||* -|, =|=. |<=#|.,
<|||<, |||', c) '| <||* -|,
<||| |#=|., <|||' =< :) '| =?=
<||| (||) ||<|#. ||, ||'
ABLs Progress Achieved in 2012
In all major areas, the bank made remarkable
progress. Deposits grew by 15.95 percent in 2012
and reached Tk. 29,243 crore from Tk. 25,221
crore in 2011. Total loans and advances in 2012
stood at TK. 21,266 crore as against Tk. 19,409
crore in 2011; which is 9.57 percent higher than
that of the previous year. The operating profit stood
at Tk. 1,007 crore at the end of 2012.
Shareholders Equity
The shareholders equity of the bank as on 31
December 2012 stood at Tk. 717 crore. The
paid-up capital of the bank has increased from Tk.
901.18 crore to Tk. 991.29 crore due to issuance of
bonus shares.
Funding Structure
The year-end funding structures of the bank in
2011 and 2012 are given below:
b) Asset Quality
The Bank maintained quality of its asset and this is
one of the strong areas of its operation. The bank
did not compromise with its standard of excellence
in terms of maintaining asset quality while
extending credit facilities. In order to improve the
quality of our assets, the Bank Management has
prioritised financing in trade and commerce by
providing working capital. Moreover, some
pragmatic steps have been taken to reduce
non-performing loans as well as to prevent new
classification thereof.
c) International Trade
The international trade financing is one of the
major business activities conducted by the bank.
The foreign trade related activities of the bank,
carried out through 40 branches across the
country, have earned confidence of importers and
exporters. For smooth operation of international
trade, the bank has a network of 429 foreign
correspondents throughout the world. In addition,
the bank is maintaining 43 NOSTRO accounts with
the worlds leading banks.
d) Import-Export Business
In 2012 the import business stood at Tk. 16,963
crore in and the export business was Tk. 8,838
crore.
e) Foreign Remittance Business
Inward foreign remittance is a major life blood of
rising economy of Bangladesh. In spite of declining
trend in manpower export from the country due to
global economic meltdown during the last couple
of years, Bangladesh registered 16.51 percent
growth in this sector in 2012 as against 2011.
Inward foreign remittance of the country for the
year 2012 is USD 14,176.91 million.

Agrani Bank Limited secured first position in
receiving foreign remittance among the state
owned commercial banks in 2012. ABL has
contributed 10.07 percent to the aggregate
remittance figure of the country and it is US$
1,427.33 million for the calendar year 2012. ABL
has a growth rate of 22.23 percent over the last
years achievement of US$ 1,167.76 million in
remittance business. The comparative studies of
remittances with the other banks are given below:
ABL in line with remittance business expansion
policy has tied up with 4 new exchange houses
including renowned Western Union, US Money
Express Co., USA, NBL Money Transfer Sdn.
Bhd., Malaysia, Standard Express, USA in 2012.
At present, ABL has been under agreement with
52 exchange houses which was 48 in 2011. Apart
from this, work process is in progress to induct
Web Based remittance (Spot Cash) operation in
addition to EFT remittance with a number of Middle
East based remittance houses. Recently, Agrani
Exchange House Pvt. Limited, Singapore, a
subsidiary of Agrani Bank Limited has inaugurated
its 3rd branch in Jurong East, Singapore. Agrani
Remittance House Sdn. Bhd., Malaysia also
applied to the authority for expanding its branch
network. With a view to channelizing remittance in
an easier and cost-effective way from Canada and
Australia, ABL has already got approval from
Bangladesh Bank on 24 September 2012 and 10
October 2012 respectively and obtained
remittance business licenses from the authorities
of respective countries and expecting to collect
direct remittance very soon from there. To facilitate
remittance service to the Bangladeshi expatriates
living in the United States of America, ABL is in
process obtaining approval for a license from the
authority.
A huge number of Bangladeshi expatriates prefer
to send money through ABL for its better exchange
rate and also for its online remittance distribution
connectivity with all of its 889 branches having
cash payment service over the counter by using
Pin Code. To keep remittance flow up, ABL
sponsors different incentive programs for its
valuable customers. The country wise remittance
received by ABL in the year 2012:
2012 mvj evsKi AwRZ AMMwZ
eemvi mKj iZc~Y evsKi AMMwZ AevnZ
iqQ| 2012 mvj AvgvbZ ew cqQ 15.95 kZvsk|
2011 mvj AvgvbZi cwigvY 25,221 KvwU UvKv| 2012
mvji kl AvgvbZi cwigvY `vuovq 29,243 KvwU
UvKv| 2011 mvji 19,409 KvwU UvKv FY I AwMgi
wecixZ 2012 mvji kl FY I AwMgi cwigvY
`vuwoqQ 21,266 KvwU UvKv, hv c~eeZx eQii Pq
kZKiv wnmve cewi nvi `vuovq 9.57 kZvsk| 2012
| |<| || -||$ :,- <|| |<|
kqvinvvim BKzBwU
-:- |< |< < <|<< | |<-||<-<
#<#|< |<| | -:- <|| |<| <|| |< #
<<|< |<||< < >:.:- <|| |<| <<
ew cq 991.29 KvwU UvKvq DbxZ nqQ|
Znwej KvVvgv
2011 Ges 2012 mvji kl evsKi Znwej KvVvgv wQj
|<t
m`i cvUdvwjI
-:: =< -:- |< < <|<< -<
|||< | |<t
eemvq AMMwZ
K) AvgvbZ
-:- |< |< < <|<< ||< |<|
wQj 29,242.92 KvwU UvKv hv MZeQi wQj 25,220.84
KvwU UvKv| GZ G cewi nvi `vuovq 15.95
kZvsk| AvjvP eQii g`v cwiwwZ mI AvgvbZi
cewi nvi wQj DjLhvM|
Pjgvb Aevq AvgvbZ msMn AZ cwZhvwMZvg~jK
|<< - -||$ <<| <<< | -|< <
<|+ = <|< |<| || -<
- | - : |< -:- | <|<<
||< | |<
L) m`i gvb
| <|< |< -< | <| << <|
=< |<|| |< =<| |-< -< | ||+ <<#
<|< << -| - <| <|<< -<
<<|< |< << ||< <<| - | -<
YMZ gvb ewi Rb evsK eemv I evwYR FY `qvK
AMvwaKvi w`Q Ges G PjwZ g~jab FY c`vb
<< ||<|| < |<| <|+ <|<<r
Ges cyibv kYxwebvwmZ FYi UvKv Av`vqc~eK Kwgq
Avbvi Rb wekl eev bqv nqQ|
M) AvRvwZK evwYR
evsK h mg LvZ A_vqb Ki AvRvwZK evwYR
<| < =<| <| |<| | <<
-| <-|< <|| -<||< ||< |< ||-
|||< <|| | <<| |-||<|<< =<
ivwbKviKMYi Avv ARb KiZ mg nqQ| `fve
AvRvwZK evwYR Kivi Rb mviv wek AMYx evsKi
< -->| |<-| '<<' |<<, <|< |<<
|||<| <|<|< * -| '|' =<|
cwiPvjbv KiQ|
N) Avg`vwb-ivwb eemv
2012 mvj Avg`vwb eemvq A_vqb nqQ 16,963 KvwU
UvKv Ges ivwb eemvq A_vqb Kiv nqQ 8,838 KvwU
UvKv|
O) e`wkK iwgUv eemv
evsjv`ki geagvb A_bxwZi AbZg cvYkw njv
| <||* <|- |< <<| |<-|<
KviY evsjv`k nZ Rbkw ivwb nvm mI 2011
|< | << -< <||* ::.c: |
cew AwRZ nqQ| 2012 mb `ki AgyLx
<||*< |<| :-,:-:.>: || ||< |<
-:- | | <||* <|- | <|< ||
-< <|| ||<||<| <|<-< < < |
AwaKvi KiQ| GKB eQi `ki mvgwMK AgyLx
<||* <|- | <|< || =< |-| :.-
kZvsk hvi cwigvY 1,427.33 wgwjqb gvwKb Wjvi|
-:: | <|<< | <||*< |<| |
1,167.76 wgwjqb gvwKb Wjvi| 2012 mvj AMYx
<|<< <||* <|- --.- | <|+ |
nqQ| wewfb evsKi mv_ AMYx evsK wjwgUWi
<||*< |< | |<
-:- | | <|< || |< <||* |-<
<|< |<< |< <<|< | <||< <||*
nvDR Western Union, US Money Express Co. USA,
NBL Money Transfer Sdn, Bhd, Malaysia, Standard
Express, USA - -| =?= -|< |<
|<+ - -:: < --| =?= -|-
eZgvb ABL | c-| <-|< =?= -|< |<
|<+ < =|$| <|< <| ||< <<|
=?= -|< |< EFT <||* =< |||| <<
< <||* <<| |< | | ||< <||
<||-|-< <|<< | =?= -| '|
=?= -| |t ||, ||<' =< < #-=
| || | <<| - =< ||| '|
<||* -| =|=. |<=#|.' =< |<< ||
Lvjvi Rb Ave`b Kiv nqQ| cevmx evsjv`kx`i
<||* < - < < || <<|< <||| =<
|| <|< <||* -| ||< <<|=
-- < -:- =< : |<< -:- ||<
<||- <|<< |- | << =< | -
-'|< << <| << |#* - << - -'|
- | <|< |# <||< <||* |-< <<
<<< <<| <|| <||-|-< -|<|$| <||*
mev cuQ `Iqvi j AMYx evsK wjwgUW GKwU
| =?= -| ||< |=| << <<
<|<< -->| || |# <||* |||<
<|< <|<| | <|< |< <||*< <
|<|< <<| | < |<|||< =?= <
c`vbi KviY wecyj msLK cevmx evsjv`kx AMYx evsK
||< |< <||* < << = <|<| <|-
<||< | <|< <|||||</<||<-<
|<| <| -|< -|< |< +<< <|
cwiPvjbv KiQ| 2012 mvj wewfb `k nZ A evsKi
| <||*< | |<
Dr. Atiur Rahman, Governor of Bangladesh Bank, delivering his inaugural speech as chief guest at the Branch
Managers conference of ABL held on 21 April 2012 in Dhaka
78
The plan contains necessary strategies to
overcome the challenges in terms of turning the
country into a medium income economy. The
major goals of this vision are: to accelerate the
growth rate up to 10 percent by 2021, to raise per
capita income up to US$ 2,000, to reduce the
number of population living under poverty line to
13.50 percent, to reduce the unemployment rate
into 15 percent, to increase annual per head
electricity consumption to 600 kilowatt hour and to
strengthen IT sector for building a Digital
Bangladesh.
Emergence of Agrani Bank limited
Agrani Bank Limited started its journey as a Public
Limited Company on 17 May 2007 and took over
the business, assets, liabilities, rights and
obligations of the former Agrani Bank, which
emerged as a Nationalized Commercial Bank in
1972, pursuant to the Bangladesh Banks
Nationalization Order 1972 (President's Order No.
26 of 1972), on a going concern basis through a
Vendor's Agreement. The Agreement was signed
between the Ministry of Finance, Government of
the People's Republic of Bangladesh on behalf of
ga Avqi `k icvii Pvj gvKvejv I Gi Rb
cqvRbxq Kkjmg~n iqQ G cwiKbvq| Gi cavb
jjv nQ: 2021 mvj bvMv` cew nvi 10 kZvsk
DbxZ Kiv, gv_vwcQy Avq 2,000 gvwKb Wjvi DbxZ Kiv,
`vwi` mxgvi wbP emevmKvix RbMYi msLv 13.50
kZvsk bvwgq Avbv, eKviZ nvi 15 kZvsk bvwgq
Avbv, evwlK gv_vwcQy we`yr eenvi 600 wKjvIqvU NUvq
DbxZ Kiv Ges wWwRUvj evsjv`k MVbi Rb Z_ chyw
eevK kwkvjx Kiv|
AMYx evsK wjwgUWi AvZcKvk
17 g 2007 ZvwiL AMYx evsK GKwU cvewjK wjwgUW
<||| |-< |<| << '| <|< ||'
| '| <|<'-=< <<|, -, -|, |<<|< <
KZZ AwaMnY Ki| 1972 mvj evsjv`k evsK mg~n
RvZxqKiY Av`k ej (cwmWUi AWvi bs 26, 1972
|) | <|< || - |<-< <| -
:c < -- | =<| < |< |< <|
MYcRvZx evsjv`k miKvii A_ gYvjq wQj AMYx
Asset Portfolio
The year-end asset portfolio scenarios of the bank in
2011 and 2012 are appended below:
Business Performance
a) Deposits
At the end of December 2012, the deposit of the bank
stood at Tk. 29,242.92 crore compared to Tk. 25,220.84
crore at the end of previous year leading to a
year-on-year growth in deposit of 15.95 percent. Given
the adverse economic scenario of the country during the
year under review, this growth rate is a remarkable
achievement.
In the prevailing situation, mobiliziation of deposits
became highly competitive and as a result, the average
cost of fund for the banks in the private sector increased
compared to that of the previous year. The bank,
therefore, decided to mobilize low cost fund. The deposit
mix of the bank as on 31 December 2012 was as
follows:
the former Agrani Bank and the Board of Directors
of the Bank on behalf of Agrani Bank Limited on 15
November 2007 with retrospective effect from 01
July 2007.
All shares of the bank are held by the Government
of the People's Republic of Bangladesh and 12
other shareholders (with one share each, the
qualification share required to become a director)
nominated by the Government.
The bank has 889 branches as of 31 December
2012 with no overseas branch. The bank has,
however, two at home and four in abroad named,
1) Agrani Equity and Investment Limited, 2) Agrani
SME Financing Company Limited, 3) Agrani
Exchange House Private Limited in Singapore, 4)
Agrani Remittance House Sdn., Bhd. in Kuala
Lumpur, Malaysia, 5) Agrani Remittance House
Canada Inc. in Canada and 6) Agrani Exchange
Company (Australia) Pty. Limited in Australia.
<|<-=< c Ges AMYx evsK wjwgUWi c wQj Gi
cwiPvjbv cwil`| GB AwaMnY KvhKi Kiv nq 1 RyjvB
2007 _K|
evsKi mg kqvii gvwjK MYcRvZx evsjv`k
miKvi Ges AviI 12 Rb kqvinvvi hviv miKvi KZK
gbvbxZ| GB 12 Rbi cZKB gv GKwU Ki kqvii
aviK hv cwiPvjKi hvMZvg~jK kqvii b~bZg
cwigvY|
-:- |< : |< < <|<< ||< | |
889wU| `k 2wU Ges we`k AewZ 4wU wbq AMYx
<|<< | ||<|| :| |<||||< <|||
iqQ h<|- :) '| #<#| =| #
||', -) '| ==# |#||* <|||
||', ) '| =?= -| |# ||,
|*|<', -) '| <||* -|, =|=. |<=#|.,
<|||<, |||', c) '| <||* -|,
<||| |#=|., <|||' =< :) '| =?=
<||| (||) ||<|#. ||, ||'
ABLs Progress Achieved in 2012
In all major areas, the bank made remarkable
progress. Deposits grew by 15.95 percent in 2012
and reached Tk. 29,243 crore from Tk. 25,221
crore in 2011. Total loans and advances in 2012
stood at TK. 21,266 crore as against Tk. 19,409
crore in 2011; which is 9.57 percent higher than
that of the previous year. The operating profit stood
at Tk. 1,007 crore at the end of 2012.
Shareholders Equity
The shareholders equity of the bank as on 31
December 2012 stood at Tk. 717 crore. The
paid-up capital of the bank has increased from Tk.
901.18 crore to Tk. 991.29 crore due to issuance of
bonus shares.
Funding Structure
The year-end funding structures of the bank in
2011 and 2012 are given below:
b) Asset Quality
The Bank maintained quality of its asset and this is
one of the strong areas of its operation. The bank
did not compromise with its standard of excellence
in terms of maintaining asset quality while
extending credit facilities. In order to improve the
quality of our assets, the Bank Management has
prioritised financing in trade and commerce by
providing working capital. Moreover, some
pragmatic steps have been taken to reduce
non-performing loans as well as to prevent new
classification thereof.
c) International Trade
The international trade financing is one of the
major business activities conducted by the bank.
The foreign trade related activities of the bank,
carried out through 40 branches across the
country, have earned confidence of importers and
exporters. For smooth operation of international
trade, the bank has a network of 429 foreign
correspondents throughout the world. In addition,
the bank is maintaining 43 NOSTRO accounts with
the worlds leading banks.
d) Import-Export Business
In 2012 the import business stood at Tk. 16,963
crore in and the export business was Tk. 8,838
crore.
e) Foreign Remittance Business
Inward foreign remittance is a major life blood of
rising economy of Bangladesh. In spite of declining
trend in manpower export from the country due to
global economic meltdown during the last couple
of years, Bangladesh registered 16.51 percent
growth in this sector in 2012 as against 2011.
Inward foreign remittance of the country for the
year 2012 is USD 14,176.91 million.

Agrani Bank Limited secured first position in
receiving foreign remittance among the state
owned commercial banks in 2012. ABL has
contributed 10.07 percent to the aggregate
remittance figure of the country and it is US$
1,427.33 million for the calendar year 2012. ABL
has a growth rate of 22.23 percent over the last
years achievement of US$ 1,167.76 million in
remittance business. The comparative studies of
remittances with the other banks are given below:
ABL in line with remittance business expansion
policy has tied up with 4 new exchange houses
including renowned Western Union, US Money
Express Co., USA, NBL Money Transfer Sdn.
Bhd., Malaysia, Standard Express, USA in 2012.
At present, ABL has been under agreement with
52 exchange houses which was 48 in 2011. Apart
from this, work process is in progress to induct
Web Based remittance (Spot Cash) operation in
addition to EFT remittance with a number of Middle
East based remittance houses. Recently, Agrani
Exchange House Pvt. Limited, Singapore, a
subsidiary of Agrani Bank Limited has inaugurated
its 3rd branch in Jurong East, Singapore. Agrani
Remittance House Sdn. Bhd., Malaysia also
applied to the authority for expanding its branch
network. With a view to channelizing remittance in
an easier and cost-effective way from Canada and
Australia, ABL has already got approval from
Bangladesh Bank on 24 September 2012 and 10
October 2012 respectively and obtained
remittance business licenses from the authorities
of respective countries and expecting to collect
direct remittance very soon from there. To facilitate
remittance service to the Bangladeshi expatriates
living in the United States of America, ABL is in
process obtaining approval for a license from the
authority.
A huge number of Bangladeshi expatriates prefer
to send money through ABL for its better exchange
rate and also for its online remittance distribution
connectivity with all of its 889 branches having
cash payment service over the counter by using
Pin Code. To keep remittance flow up, ABL
sponsors different incentive programs for its
valuable customers. The country wise remittance
received by ABL in the year 2012:
2012 mvj evsKi AwRZ AMMwZ
eemvi mKj iZc~Y evsKi AMMwZ AevnZ
iqQ| 2012 mvj AvgvbZ ew cqQ 15.95 kZvsk|
2011 mvj AvgvbZi cwigvY 25,221 KvwU UvKv| 2012
mvji kl AvgvbZi cwigvY `vuovq 29,243 KvwU
UvKv| 2011 mvji 19,409 KvwU UvKv FY I AwMgi
wecixZ 2012 mvji kl FY I AwMgi cwigvY
`vuwoqQ 21,266 KvwU UvKv, hv c~eeZx eQii Pq
kZKiv wnmve cewi nvi `vuovq 9.57 kZvsk| 2012
| |<| || -||$ :,- <|| |<|
kqvinvvim BKzBwU
-:- |< |< < <|<< | |<-||<-<
#<#|< |<| | -:- <|| |<| <|| |< #
<<|< |<||< < >:.:- <|| |<| <<
ew cq 991.29 KvwU UvKvq DbxZ nqQ|
Znwej KvVvgv
2011 Ges 2012 mvji kl evsKi Znwej KvVvgv wQj
|<t
m`i cvUdvwjI
-:: =< -:- |< < <|<< -<
|||< | |<t
eemvq AMMwZ
K) AvgvbZ
-:- |< |< < <|<< ||< |<|
wQj 29,242.92 KvwU UvKv hv MZeQi wQj 25,220.84
KvwU UvKv| GZ G cewi nvi `vuovq 15.95
kZvsk| AvjvP eQii g`v cwiwwZ mI AvgvbZi
cewi nvi wQj DjLhvM|
Pjgvb Aevq AvgvbZ msMn AZ cwZhvwMZvg~jK
|<< - -||$ <<| <<< | -|< <
<|+ = <|< |<| || -<
- | - : |< -:- | <|<<
||< | |<
L) m`i gvb
| <|< |< -< | <| << <|
=< |<|| |< =<| |-< -< | ||+ <<#
<|< << -| - <| <|<< -<
<<|< |< << ||< <<| - | -<
YMZ gvb ewi Rb evsK eemv I evwYR FY `qvK
AMvwaKvi w`Q Ges G PjwZ g~jab FY c`vb
<< ||<|| < |<| <|+ <|<<r
Ges cyibv kYxwebvwmZ FYi UvKv Av`vqc~eK Kwgq
Avbvi Rb wekl eev bqv nqQ|
M) AvRvwZK evwYR
evsK h mg LvZ A_vqb Ki AvRvwZK evwYR
<| < =<| <| |<| | <<
-| <-|< <|| -<||< ||< |< ||-
|||< <|| | <<| |-||<|<< =<
ivwbKviKMYi Avv ARb KiZ mg nqQ| `fve
AvRvwZK evwYR Kivi Rb mviv wek AMYx evsKi
< -->| |<-| '<<' |<<, <|< |<<
|||<| <|<|< * -| '|' =<|
cwiPvjbv KiQ|
N) Avg`vwb-ivwb eemv
2012 mvj Avg`vwb eemvq A_vqb nqQ 16,963 KvwU
UvKv Ges ivwb eemvq A_vqb Kiv nqQ 8,838 KvwU
UvKv|
O) e`wkK iwgUv eemv
evsjv`ki geagvb A_bxwZi AbZg cvYkw njv
| <||* <|- |< <<| |<-|<
KviY evsjv`k nZ Rbkw ivwb nvm mI 2011
|< | << -< <||* ::.c: |
cew AwRZ nqQ| 2012 mb `ki AgyLx
<||*< |<| :-,:-:.>: || ||< |<
-:- | | <||* <|- | <|< ||
-< <|| ||<||<| <|<-< < < |
AwaKvi KiQ| GKB eQi `ki mvgwMK AgyLx
<||* <|- | <|< || =< |-| :.-
kZvsk hvi cwigvY 1,427.33 wgwjqb gvwKb Wjvi|
-:: | <|<< | <||*< |<| |
1,167.76 wgwjqb gvwKb Wjvi| 2012 mvj AMYx
<|<< <||* <|- --.- | <|+ |
nqQ| wewfb evsKi mv_ AMYx evsK wjwgUWi
<||*< |< | |<
-:- | | <|< || |< <||* |-<
<|< |<< |< <<|< | <||< <||*
nvDR Western Union, US Money Express Co. USA,
NBL Money Transfer Sdn, Bhd, Malaysia, Standard
Express, USA - -| =?= -|< |<
|<+ - -:: < --| =?= -|-
eZgvb ABL | c-| <-|< =?= -|< |<
|<+ < =|$| <|< <| ||< <<|
=?= -|< |< EFT <||* =< |||| <<
< <||* <<| |< | | ||< <||
<||-|-< <|<< | =?= -| '|
=?= -| |t ||, ||<' =< < #-=
| || | <<| - =< ||| '|
<||* -| =|=. |<=#|.' =< |<< ||
Lvjvi Rb Ave`b Kiv nqQ| cevmx evsjv`kx`i
<||* < - < < || <<|< <||| =<
|| <|< <||* -| ||< <<|=
-- < -:- =< : |<< -:- ||<
<||- <|<< |- | << =< | -
-'|< << <| << |#* - << - -'|
- | <|< |# <||< <||* |-< <<
<<< <<| <|| <||-|-< -|<|$| <||*
mev cuQ `Iqvi j AMYx evsK wjwgUW GKwU
| =?= -| ||< |=| << <<
<|<< -->| || |# <||* |||<
<|< <|<| | <|< |< <||*< <
|<|< <<| | < |<|||< =?= <
c`vbi KviY wecyj msLK cevmx evsjv`kx AMYx evsK
||< |< <||* < << = <|<| <|-
<||< | <|< <|||||</<||<-<
|<| <| -|< -|< |< +<< <|
cwiPvjbv KiQ| 2012 mvj wewfb `k nZ A evsKi
| <||*< | |<
Professor Dr. Khondoker Bazlul Hoque, Chairman of ABL, inaugurating the Zonal, Corporate and AD Branch Head
Conference held on 28 January 2012 in Dhaka
Annual Report 2012 79
The plan contains necessary strategies to
overcome the challenges in terms of turning the
country into a medium income economy. The
major goals of this vision are: to accelerate the
growth rate up to 10 percent by 2021, to raise per
capita income up to US$ 2,000, to reduce the
number of population living under poverty line to
13.50 percent, to reduce the unemployment rate
into 15 percent, to increase annual per head
electricity consumption to 600 kilowatt hour and to
strengthen IT sector for building a Digital
Bangladesh.
Emergence of Agrani Bank limited
Agrani Bank Limited started its journey as a Public
Limited Company on 17 May 2007 and took over
the business, assets, liabilities, rights and
obligations of the former Agrani Bank, which
emerged as a Nationalized Commercial Bank in
1972, pursuant to the Bangladesh Banks
Nationalization Order 1972 (President's Order No.
26 of 1972), on a going concern basis through a
Vendor's Agreement. The Agreement was signed
between the Ministry of Finance, Government of
the People's Republic of Bangladesh on behalf of
ga Avqi `k icvii Pvj gvKvejv I Gi Rb
cqvRbxq Kkjmg~n iqQ G cwiKbvq| Gi cavb
jjv nQ: 2021 mvj bvMv` cew nvi 10 kZvsk
DbxZ Kiv, gv_vwcQy Avq 2,000 gvwKb Wjvi DbxZ Kiv,
`vwi` mxgvi wbP emevmKvix RbMYi msLv 13.50
kZvsk bvwgq Avbv, eKviZ nvi 15 kZvsk bvwgq
Avbv, evwlK gv_vwcQy we`yr eenvi 600 wKjvIqvU NUvq
DbxZ Kiv Ges wWwRUvj evsjv`k MVbi Rb Z_ chyw
eevK kwkvjx Kiv|
AMYx evsK wjwgUWi AvZcKvk
17 g 2007 ZvwiL AMYx evsK GKwU cvewjK wjwgUW
<||| |-< |<| << '| <|< ||'
| '| <|<'-=< <<|, -, -|, |<<|< <
KZZ AwaMnY Ki| 1972 mvj evsjv`k evsK mg~n
RvZxqKiY Av`k ej (cwmWUi AWvi bs 26, 1972
|) | <|< || - |<-< <| -
:c < -- | =<| < |< |< <|
MYcRvZx evsjv`k miKvii A_ gYvjq wQj AMYx
Asset Portfolio
The year-end asset portfolio scenarios of the bank in
2011 and 2012 are appended below:
Business Performance
a) Deposits
At the end of December 2012, the deposit of the bank
stood at Tk. 29,242.92 crore compared to Tk. 25,220.84
crore at the end of previous year leading to a
year-on-year growth in deposit of 15.95 percent. Given
the adverse economic scenario of the country during the
year under review, this growth rate is a remarkable
achievement.
In the prevailing situation, mobiliziation of deposits
became highly competitive and as a result, the average
cost of fund for the banks in the private sector increased
compared to that of the previous year. The bank,
therefore, decided to mobilize low cost fund. The deposit
mix of the bank as on 31 December 2012 was as
follows:
the former Agrani Bank and the Board of Directors
of the Bank on behalf of Agrani Bank Limited on 15
November 2007 with retrospective effect from 01
July 2007.
All shares of the bank are held by the Government
of the People's Republic of Bangladesh and 12
other shareholders (with one share each, the
qualification share required to become a director)
nominated by the Government.
The bank has 889 branches as of 31 December
2012 with no overseas branch. The bank has,
however, two at home and four in abroad named,
1) Agrani Equity and Investment Limited, 2) Agrani
SME Financing Company Limited, 3) Agrani
Exchange House Private Limited in Singapore, 4)
Agrani Remittance House Sdn., Bhd. in Kuala
Lumpur, Malaysia, 5) Agrani Remittance House
Canada Inc. in Canada and 6) Agrani Exchange
Company (Australia) Pty. Limited in Australia.
<|<-=< c Ges AMYx evsK wjwgUWi c wQj Gi
cwiPvjbv cwil`| GB AwaMnY KvhKi Kiv nq 1 RyjvB
2007 _K|
evsKi mg kqvii gvwjK MYcRvZx evsjv`k
miKvi Ges AviI 12 Rb kqvinvvi hviv miKvi KZK
gbvbxZ| GB 12 Rbi cZKB gv GKwU Ki kqvii
aviK hv cwiPvjKi hvMZvg~jK kqvii b~bZg
cwigvY|
-:- |< : |< < <|<< ||< | |
889wU| `k 2wU Ges we`k AewZ 4wU wbq AMYx
<|<< | ||<|| :| |<||||< <|||
iqQ h<|- :) '| #<#| =| #
||', -) '| ==# |#||* <|||
||', ) '| =?= -| |# ||,
|*|<', -) '| <||* -|, =|=. |<=#|.,
<|||<, |||', c) '| <||* -|,
<||| |#=|., <|||' =< :) '| =?=
<||| (||) ||<|#. ||, ||'
ABLs Progress Achieved in 2012
In all major areas, the bank made remarkable
progress. Deposits grew by 15.95 percent in 2012
and reached Tk. 29,243 crore from Tk. 25,221
crore in 2011. Total loans and advances in 2012
stood at TK. 21,266 crore as against Tk. 19,409
crore in 2011; which is 9.57 percent higher than
that of the previous year. The operating profit stood
at Tk. 1,007 crore at the end of 2012.
Shareholders Equity
The shareholders equity of the bank as on 31
December 2012 stood at Tk. 717 crore. The
paid-up capital of the bank has increased from Tk.
901.18 crore to Tk. 991.29 crore due to issuance of
bonus shares.
Funding Structure
The year-end funding structures of the bank in
2011 and 2012 are given below:
b) Asset Quality
The Bank maintained quality of its asset and this is
one of the strong areas of its operation. The bank
did not compromise with its standard of excellence
in terms of maintaining asset quality while
extending credit facilities. In order to improve the
quality of our assets, the Bank Management has
prioritised financing in trade and commerce by
providing working capital. Moreover, some
pragmatic steps have been taken to reduce
non-performing loans as well as to prevent new
classification thereof.
c) International Trade
The international trade financing is one of the
major business activities conducted by the bank.
The foreign trade related activities of the bank,
carried out through 40 branches across the
country, have earned confidence of importers and
exporters. For smooth operation of international
trade, the bank has a network of 429 foreign
correspondents throughout the world. In addition,
the bank is maintaining 43 NOSTRO accounts with
the worlds leading banks.
d) Import-Export Business
In 2012 the import business stood at Tk. 16,963
crore in and the export business was Tk. 8,838
crore.
e) Foreign Remittance Business
Inward foreign remittance is a major life blood of
rising economy of Bangladesh. In spite of declining
trend in manpower export from the country due to
global economic meltdown during the last couple
of years, Bangladesh registered 16.51 percent
growth in this sector in 2012 as against 2011.
Inward foreign remittance of the country for the
year 2012 is USD 14,176.91 million.

Agrani Bank Limited secured first position in
receiving foreign remittance among the state
owned commercial banks in 2012. ABL has
contributed 10.07 percent to the aggregate
remittance figure of the country and it is US$
1,427.33 million for the calendar year 2012. ABL
has a growth rate of 22.23 percent over the last
years achievement of US$ 1,167.76 million in
remittance business. The comparative studies of
remittances with the other banks are given below:
ABL in line with remittance business expansion
policy has tied up with 4 new exchange houses
including renowned Western Union, US Money
Express Co., USA, NBL Money Transfer Sdn.
Bhd., Malaysia, Standard Express, USA in 2012.
At present, ABL has been under agreement with
52 exchange houses which was 48 in 2011. Apart
from this, work process is in progress to induct
Web Based remittance (Spot Cash) operation in
addition to EFT remittance with a number of Middle
East based remittance houses. Recently, Agrani
Exchange House Pvt. Limited, Singapore, a
subsidiary of Agrani Bank Limited has inaugurated
its 3rd branch in Jurong East, Singapore. Agrani
Remittance House Sdn. Bhd., Malaysia also
applied to the authority for expanding its branch
network. With a view to channelizing remittance in
an easier and cost-effective way from Canada and
Australia, ABL has already got approval from
Bangladesh Bank on 24 September 2012 and 10
October 2012 respectively and obtained
remittance business licenses from the authorities
of respective countries and expecting to collect
direct remittance very soon from there. To facilitate
remittance service to the Bangladeshi expatriates
living in the United States of America, ABL is in
process obtaining approval for a license from the
authority.
A huge number of Bangladeshi expatriates prefer
to send money through ABL for its better exchange
rate and also for its online remittance distribution
connectivity with all of its 889 branches having
cash payment service over the counter by using
Pin Code. To keep remittance flow up, ABL
sponsors different incentive programs for its
valuable customers. The country wise remittance
received by ABL in the year 2012:
2012 mvj evsKi AwRZ AMMwZ
eemvi mKj iZc~Y evsKi AMMwZ AevnZ
iqQ| 2012 mvj AvgvbZ ew cqQ 15.95 kZvsk|
2011 mvj AvgvbZi cwigvY 25,221 KvwU UvKv| 2012
mvji kl AvgvbZi cwigvY `vuovq 29,243 KvwU
UvKv| 2011 mvji 19,409 KvwU UvKv FY I AwMgi
wecixZ 2012 mvji kl FY I AwMgi cwigvY
`vuwoqQ 21,266 KvwU UvKv, hv c~eeZx eQii Pq
kZKiv wnmve cewi nvi `vuovq 9.57 kZvsk| 2012
| |<| || -||$ :,- <|| |<|
kqvinvvim BKzBwU
-:- |< |< < <|<< | |<-||<-<
#<#|< |<| | -:- <|| |<| <|| |< #
<<|< |<||< < >:.:- <|| |<| <<
ew cq 991.29 KvwU UvKvq DbxZ nqQ|
Znwej KvVvgv
2011 Ges 2012 mvji kl evsKi Znwej KvVvgv wQj
|<t
m`i cvUdvwjI
-:: =< -:- |< < <|<< -<
|||< | |<t
eemvq AMMwZ
K) AvgvbZ
-:- |< |< < <|<< ||< |<|
wQj 29,242.92 KvwU UvKv hv MZeQi wQj 25,220.84
KvwU UvKv| GZ G cewi nvi `vuovq 15.95
kZvsk| AvjvP eQii g`v cwiwwZ mI AvgvbZi
cewi nvi wQj DjLhvM|
Pjgvb Aevq AvgvbZ msMn AZ cwZhvwMZvg~jK
|<< - -||$ <<| <<< | -|< <
<|+ = <|< |<| || -<
- | - : |< -:- | <|<<
||< | |<
L) m`i gvb
| <|< |< -< | <| << <|
=< |<|| |< =<| |-< -< | ||+ <<#
<|< << -| - <| <|<< -<
<<|< |< << ||< <<| - | -<
YMZ gvb ewi Rb evsK eemv I evwYR FY `qvK
AMvwaKvi w`Q Ges G PjwZ g~jab FY c`vb
<< ||<|| < |<| <|+ <|<<r
Ges cyibv kYxwebvwmZ FYi UvKv Av`vqc~eK Kwgq
Avbvi Rb wekl eev bqv nqQ|
M) AvRvwZK evwYR
evsK h mg LvZ A_vqb Ki AvRvwZK evwYR
<| < =<| <| |<| | <<
-| <-|< <|| -<||< ||< |< ||-
|||< <|| | <<| |-||<|<< =<
ivwbKviKMYi Avv ARb KiZ mg nqQ| `fve
AvRvwZK evwYR Kivi Rb mviv wek AMYx evsKi
< -->| |<-| '<<' |<<, <|< |<<
|||<| <|<|< * -| '|' =<|
cwiPvjbv KiQ|
N) Avg`vwb-ivwb eemv
2012 mvj Avg`vwb eemvq A_vqb nqQ 16,963 KvwU
UvKv Ges ivwb eemvq A_vqb Kiv nqQ 8,838 KvwU
UvKv|
O) e`wkK iwgUv eemv
evsjv`ki geagvb A_bxwZi AbZg cvYkw njv
| <||* <|- |< <<| |<-|<
KviY evsjv`k nZ Rbkw ivwb nvm mI 2011
|< | << -< <||* ::.c: |
cew AwRZ nqQ| 2012 mb `ki AgyLx
<||*< |<| :-,:-:.>: || ||< |<
-:- | | <||* <|- | <|< ||
-< <|| ||<||<| <|<-< < < |
AwaKvi KiQ| GKB eQi `ki mvgwMK AgyLx
<||* <|- | <|< || =< |-| :.-
kZvsk hvi cwigvY 1,427.33 wgwjqb gvwKb Wjvi|
-:: | <|<< | <||*< |<| |
1,167.76 wgwjqb gvwKb Wjvi| 2012 mvj AMYx
<|<< <||* <|- --.- | <|+ |
nqQ| wewfb evsKi mv_ AMYx evsK wjwgUWi
<||*< |< | |<
-:- | | <|< || |< <||* |-<
<|< |<< |< <<|< | <||< <||*
nvDR Western Union, US Money Express Co. USA,
NBL Money Transfer Sdn, Bhd, Malaysia, Standard
Express, USA - -| =?= -|< |<
|<+ - -:: < --| =?= -|-
eZgvb ABL | c-| <-|< =?= -|< |<
|<+ < =|$| <|< <| ||< <<|
=?= -|< |< EFT <||* =< |||| <<
< <||* <<| |< | | ||< <||
<||-|-< <|<< | =?= -| '|
=?= -| |t ||, ||<' =< < #-=
| || | <<| - =< ||| '|
<||* -| =|=. |<=#|.' =< |<< ||
Lvjvi Rb Ave`b Kiv nqQ| cevmx evsjv`kx`i
<||* < - < < || <<|< <||| =<
|| <|< <||* -| ||< <<|=
-- < -:- =< : |<< -:- ||<
<||- <|<< |- | << =< | -
-'|< << <| << |#* - << - -'|
- | <|< |# <||< <||* |-< <<
<<< <<| <|| <||-|-< -|<|$| <||*
mev cuQ `Iqvi j AMYx evsK wjwgUW GKwU
| =?= -| ||< |=| << <<
<|<< -->| || |# <||* |||<
<|< <|<| | <|< |< <||*< <
|<|< <<| | < |<|||< =?= <
c`vbi KviY wecyj msLK cevmx evsjv`kx AMYx evsK
||< |< <||* < << = <|<| <|-
<||< | <|< <|||||</<||<-<
|<| <| -|< -|< |< +<< <|
cwiPvjbv KiQ| 2012 mvj wewfb `k nZ A evsKi
| <||*< | |<
Dr. Syed Abdul Hamid, FCA, Managing Director & CEO of ABL presenting key speech at the managers conference
held on 21 April 2012 in Dhaka
80
The plan contains necessary strategies to
overcome the challenges in terms of turning the
country into a medium income economy. The
major goals of this vision are: to accelerate the
growth rate up to 10 percent by 2021, to raise per
capita income up to US$ 2,000, to reduce the
number of population living under poverty line to
13.50 percent, to reduce the unemployment rate
into 15 percent, to increase annual per head
electricity consumption to 600 kilowatt hour and to
strengthen IT sector for building a Digital
Bangladesh.
Emergence of Agrani Bank limited
Agrani Bank Limited started its journey as a Public
Limited Company on 17 May 2007 and took over
the business, assets, liabilities, rights and
obligations of the former Agrani Bank, which
emerged as a Nationalized Commercial Bank in
1972, pursuant to the Bangladesh Banks
Nationalization Order 1972 (President's Order No.
26 of 1972), on a going concern basis through a
Vendor's Agreement. The Agreement was signed
between the Ministry of Finance, Government of
the People's Republic of Bangladesh on behalf of
ga Avqi `k icvii Pvj gvKvejv I Gi Rb
cqvRbxq Kkjmg~n iqQ G cwiKbvq| Gi cavb
jjv nQ: 2021 mvj bvMv` cew nvi 10 kZvsk
DbxZ Kiv, gv_vwcQy Avq 2,000 gvwKb Wjvi DbxZ Kiv,
`vwi` mxgvi wbP emevmKvix RbMYi msLv 13.50
kZvsk bvwgq Avbv, eKviZ nvi 15 kZvsk bvwgq
Avbv, evwlK gv_vwcQy we`yr eenvi 600 wKjvIqvU NUvq
DbxZ Kiv Ges wWwRUvj evsjv`k MVbi Rb Z_ chyw
eevK kwkvjx Kiv|
AMYx evsK wjwgUWi AvZcKvk
17 g 2007 ZvwiL AMYx evsK GKwU cvewjK wjwgUW
<||| |-< |<| << '| <|< ||'
| '| <|<'-=< <<|, -, -|, |<<|< <
KZZ AwaMnY Ki| 1972 mvj evsjv`k evsK mg~n
RvZxqKiY Av`k ej (cwmWUi AWvi bs 26, 1972
|) | <|< || - |<-< <| -
:c < -- | =<| < |< |< <|
MYcRvZx evsjv`k miKvii A_ gYvjq wQj AMYx
Asset Portfolio
The year-end asset portfolio scenarios of the bank in
2011 and 2012 are appended below:
Business Performance
a) Deposits
At the end of December 2012, the deposit of the bank
stood at Tk. 29,242.92 crore compared to Tk. 25,220.84
crore at the end of previous year leading to a
year-on-year growth in deposit of 15.95 percent. Given
the adverse economic scenario of the country during the
year under review, this growth rate is a remarkable
achievement.
In the prevailing situation, mobiliziation of deposits
became highly competitive and as a result, the average
cost of fund for the banks in the private sector increased
compared to that of the previous year. The bank,
therefore, decided to mobilize low cost fund. The deposit
mix of the bank as on 31 December 2012 was as
follows:
the former Agrani Bank and the Board of Directors
of the Bank on behalf of Agrani Bank Limited on 15
November 2007 with retrospective effect from 01
July 2007.
All shares of the bank are held by the Government
of the People's Republic of Bangladesh and 12
other shareholders (with one share each, the
qualification share required to become a director)
nominated by the Government.
The bank has 889 branches as of 31 December
2012 with no overseas branch. The bank has,
however, two at home and four in abroad named,
1) Agrani Equity and Investment Limited, 2) Agrani
SME Financing Company Limited, 3) Agrani
Exchange House Private Limited in Singapore, 4)
Agrani Remittance House Sdn., Bhd. in Kuala
Lumpur, Malaysia, 5) Agrani Remittance House
Canada Inc. in Canada and 6) Agrani Exchange
Company (Australia) Pty. Limited in Australia.
<|<-=< c Ges AMYx evsK wjwgUWi c wQj Gi
cwiPvjbv cwil`| GB AwaMnY KvhKi Kiv nq 1 RyjvB
2007 _K|
evsKi mg kqvii gvwjK MYcRvZx evsjv`k
miKvi Ges AviI 12 Rb kqvinvvi hviv miKvi KZK
gbvbxZ| GB 12 Rbi cZKB gv GKwU Ki kqvii
aviK hv cwiPvjKi hvMZvg~jK kqvii b~bZg
cwigvY|
-:- |< : |< < <|<< ||< | |
889wU| `k 2wU Ges we`k AewZ 4wU wbq AMYx
<|<< | ||<|| :| |<||||< <|||
iqQ h<|- :) '| #<#| =| #
||', -) '| ==# |#||* <|||
||', ) '| =?= -| |# ||,
|*|<', -) '| <||* -|, =|=. |<=#|.,
<|||<, |||', c) '| <||* -|,
<||| |#=|., <|||' =< :) '| =?=
<||| (||) ||<|#. ||, ||'
ABLs Progress Achieved in 2012
In all major areas, the bank made remarkable
progress. Deposits grew by 15.95 percent in 2012
and reached Tk. 29,243 crore from Tk. 25,221
crore in 2011. Total loans and advances in 2012
stood at TK. 21,266 crore as against Tk. 19,409
crore in 2011; which is 9.57 percent higher than
that of the previous year. The operating profit stood
at Tk. 1,007 crore at the end of 2012.
Shareholders Equity
The shareholders equity of the bank as on 31
December 2012 stood at Tk. 717 crore. The
paid-up capital of the bank has increased from Tk.
901.18 crore to Tk. 991.29 crore due to issuance of
bonus shares.
Funding Structure
The year-end funding structures of the bank in
2011 and 2012 are given below:
b) Asset Quality
The Bank maintained quality of its asset and this is
one of the strong areas of its operation. The bank
did not compromise with its standard of excellence
in terms of maintaining asset quality while
extending credit facilities. In order to improve the
quality of our assets, the Bank Management has
prioritised financing in trade and commerce by
providing working capital. Moreover, some
pragmatic steps have been taken to reduce
non-performing loans as well as to prevent new
classification thereof.
c) International Trade
The international trade financing is one of the
major business activities conducted by the bank.
The foreign trade related activities of the bank,
carried out through 40 branches across the
country, have earned confidence of importers and
exporters. For smooth operation of international
trade, the bank has a network of 429 foreign
correspondents throughout the world. In addition,
the bank is maintaining 43 NOSTRO accounts with
the worlds leading banks.
d) Import-Export Business
In 2012 the import business stood at Tk. 16,963
crore in and the export business was Tk. 8,838
crore.
e) Foreign Remittance Business
Inward foreign remittance is a major life blood of
rising economy of Bangladesh. In spite of declining
trend in manpower export from the country due to
global economic meltdown during the last couple
of years, Bangladesh registered 16.51 percent
growth in this sector in 2012 as against 2011.
Inward foreign remittance of the country for the
year 2012 is USD 14,176.91 million.

Agrani Bank Limited secured first position in
receiving foreign remittance among the state
owned commercial banks in 2012. ABL has
contributed 10.07 percent to the aggregate
remittance figure of the country and it is US$
1,427.33 million for the calendar year 2012. ABL
has a growth rate of 22.23 percent over the last
years achievement of US$ 1,167.76 million in
remittance business. The comparative studies of
remittances with the other banks are given below:
ABL in line with remittance business expansion
policy has tied up with 4 new exchange houses
including renowned Western Union, US Money
Express Co., USA, NBL Money Transfer Sdn.
Bhd., Malaysia, Standard Express, USA in 2012.
At present, ABL has been under agreement with
52 exchange houses which was 48 in 2011. Apart
from this, work process is in progress to induct
Web Based remittance (Spot Cash) operation in
addition to EFT remittance with a number of Middle
East based remittance houses. Recently, Agrani
Exchange House Pvt. Limited, Singapore, a
subsidiary of Agrani Bank Limited has inaugurated
its 3rd branch in Jurong East, Singapore. Agrani
Remittance House Sdn. Bhd., Malaysia also
applied to the authority for expanding its branch
network. With a view to channelizing remittance in
an easier and cost-effective way from Canada and
Australia, ABL has already got approval from
Bangladesh Bank on 24 September 2012 and 10
October 2012 respectively and obtained
remittance business licenses from the authorities
of respective countries and expecting to collect
direct remittance very soon from there. To facilitate
remittance service to the Bangladeshi expatriates
living in the United States of America, ABL is in
process obtaining approval for a license from the
authority.
A huge number of Bangladeshi expatriates prefer
to send money through ABL for its better exchange
rate and also for its online remittance distribution
connectivity with all of its 889 branches having
cash payment service over the counter by using
Pin Code. To keep remittance flow up, ABL
sponsors different incentive programs for its
valuable customers. The country wise remittance
received by ABL in the year 2012:
Particulars of Assets 2012 2011
Loans and Advances 21,266.30 19,408.56
Investments 9,241.98 8,533.13
Fixed Assets 1,138.07 1,122.66
Money at call and short notice 270.00 100.00
Cash in hand and with other Banks & FIs 2,597.67 2,253.24
Other Assets 3,357.62 3,464.48
Total 37,871.64 34,882.07
2012 mvj evsKi AwRZ AMMwZ
eemvi mKj iZc~Y evsKi AMMwZ AevnZ
iqQ| 2012 mvj AvgvbZ ew cqQ 15.95 kZvsk|
2011 mvj AvgvbZi cwigvY 25,221 KvwU UvKv| 2012
mvji kl AvgvbZi cwigvY `vuovq 29,243 KvwU
UvKv| 2011 mvji 19,409 KvwU UvKv FY I AwMgi
wecixZ 2012 mvji kl FY I AwMgi cwigvY
`vuwoqQ 21,266 KvwU UvKv, hv c~eeZx eQii Pq
kZKiv wnmve cewi nvi `vuovq 9.57 kZvsk| 2012
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UvKv Ges ivwb eemvq A_vqb Kiv nqQ 8,838 KvwU
UvKv|
Crore Taka Taka in Crore
Asset Portfolio
Investments
9241.98
Fixed Assets 1138.07
Money at call
and short notice 270.00
Cash in Hand and with other
Banks & FIs 2,597.67
Other Assets 3,357.62
Loans and
Advances
21,266.30
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evsjv`ki geagvb A_bxwZi AbZg cvYkw njv
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|< | << -< <||* ::.c: |
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-:: | <|<< | <||*< |<| |
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Taka in Crore
Sources of Fund 2012 2011
Deposits 29,242.92 25,220.84
Paid-up-Capital 991.29 901.18
Statutory Reserve 413.98 413.98
Revaluation & Amortization
Reserve in Govt. Securities 11.72 26.93
Assets Revaluation Reserve 753.20 753.84
General Reserve 0.50 0.50
* Retained Surplus from Profit and
Loss Account (1,454.35) 497.83
Total 29,959.26 27,815.10
* Retained Surplus reduced to Tk. (1,454.35) crore mainly due to increased requirment of loan loss provision resulting from increased
amount of CL, calculated on the basis of newly introduced loan classification system by the BB.
Annual Report 2012 81
The plan contains necessary strategies to
overcome the challenges in terms of turning the
country into a medium income economy. The
major goals of this vision are: to accelerate the
growth rate up to 10 percent by 2021, to raise per
capita income up to US$ 2,000, to reduce the
number of population living under poverty line to
13.50 percent, to reduce the unemployment rate
into 15 percent, to increase annual per head
electricity consumption to 600 kilowatt hour and to
strengthen IT sector for building a Digital
Bangladesh.
Emergence of Agrani Bank limited
Agrani Bank Limited started its journey as a Public
Limited Company on 17 May 2007 and took over
the business, assets, liabilities, rights and
obligations of the former Agrani Bank, which
emerged as a Nationalized Commercial Bank in
1972, pursuant to the Bangladesh Banks
Nationalization Order 1972 (President's Order No.
26 of 1972), on a going concern basis through a
Vendor's Agreement. The Agreement was signed
between the Ministry of Finance, Government of
the People's Republic of Bangladesh on behalf of
ga Avqi `k icvii Pvj gvKvejv I Gi Rb
cqvRbxq Kkjmg~n iqQ G cwiKbvq| Gi cavb
jjv nQ: 2021 mvj bvMv` cew nvi 10 kZvsk
DbxZ Kiv, gv_vwcQy Avq 2,000 gvwKb Wjvi DbxZ Kiv,
`vwi` mxgvi wbP emevmKvix RbMYi msLv 13.50
kZvsk bvwgq Avbv, eKviZ nvi 15 kZvsk bvwgq
Avbv, evwlK gv_vwcQy we`yr eenvi 600 wKjvIqvU NUvq
DbxZ Kiv Ges wWwRUvj evsjv`k MVbi Rb Z_ chyw
eevK kwkvjx Kiv|
AMYx evsK wjwgUWi AvZcKvk
17 g 2007 ZvwiL AMYx evsK GKwU cvewjK wjwgUW
<||| |-< |<| << '| <|< ||'
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KZZ AwaMnY Ki| 1972 mvj evsjv`k evsK mg~n
RvZxqKiY Av`k ej (cwmWUi AWvi bs 26, 1972
|) | <|< || - |<-< <| -
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MYcRvZx evsjv`k miKvii A_ gYvjq wQj AMYx
Asset Portfolio
The year-end asset portfolio scenarios of the bank in
2011 and 2012 are appended below:
Business Performance
a) Deposits
At the end of December 2012, the deposit of the bank
stood at Tk. 29,242.92 crore compared to Tk. 25,220.84
crore at the end of previous year leading to a
year-on-year growth in deposit of 15.95 percent. Given
the adverse economic scenario of the country during the
year under review, this growth rate is a remarkable
achievement.
In the prevailing situation, mobiliziation of deposits
became highly competitive and as a result, the average
cost of fund for the banks in the private sector increased
compared to that of the previous year. The bank,
therefore, decided to mobilize low cost fund. The deposit
mix of the bank as on 31 December 2012 was as
follows:
the former Agrani Bank and the Board of Directors
of the Bank on behalf of Agrani Bank Limited on 15
November 2007 with retrospective effect from 01
July 2007.
All shares of the bank are held by the Government
of the People's Republic of Bangladesh and 12
other shareholders (with one share each, the
qualification share required to become a director)
nominated by the Government.
The bank has 889 branches as of 31 December
2012 with no overseas branch. The bank has,
however, two at home and four in abroad named,
1) Agrani Equity and Investment Limited, 2) Agrani
SME Financing Company Limited, 3) Agrani
Exchange House Private Limited in Singapore, 4)
Agrani Remittance House Sdn., Bhd. in Kuala
Lumpur, Malaysia, 5) Agrani Remittance House
Canada Inc. in Canada and 6) Agrani Exchange
Company (Australia) Pty. Limited in Australia.
<|<-=< c Ges AMYx evsK wjwgUWi c wQj Gi
cwiPvjbv cwil`| GB AwaMnY KvhKi Kiv nq 1 RyjvB
2007 _K|
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miKvi Ges AviI 12 Rb kqvinvvi hviv miKvi KZK
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cwigvY|
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<|<< | ||<|| :| |<||||< <|||
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ABLs Progress Achieved in 2012
In all major areas, the bank made remarkable
progress. Deposits grew by 15.95 percent in 2012
and reached Tk. 29,243 crore from Tk. 25,221
crore in 2011. Total loans and advances in 2012
stood at TK. 21,266 crore as against Tk. 19,409
crore in 2011; which is 9.57 percent higher than
that of the previous year. The operating profit stood
at Tk. 1,007 crore at the end of 2012.
Shareholders Equity
The shareholders equity of the bank as on 31
December 2012 stood at Tk. 717 crore. The
paid-up capital of the bank has increased from Tk.
901.18 crore to Tk. 991.29 crore due to issuance of
bonus shares.
Funding Structure
The year-end funding structures of the bank in
2011 and 2012 are given below:
b) Asset Quality
The Bank maintained quality of its asset and this is
one of the strong areas of its operation. The bank
did not compromise with its standard of excellence
in terms of maintaining asset quality while
extending credit facilities. In order to improve the
quality of our assets, the Bank Management has
prioritised financing in trade and commerce by
providing working capital. Moreover, some
pragmatic steps have been taken to reduce
non-performing loans as well as to prevent new
classification thereof.
c) International Trade
The international trade financing is one of the
major business activities conducted by the bank.
The foreign trade related activities of the bank,
carried out through 40 branches across the
country, have earned confidence of importers and
exporters. For smooth operation of international
trade, the bank has a network of 429 foreign
correspondents throughout the world. In addition,
the bank is maintaining 43 NOSTRO accounts with
the worlds leading banks.
d) Import-Export Business
In 2012 the import business stood at Tk. 16,963
crore in and the export business was Tk. 8,838
crore.
e) Foreign Remittance Business
Inward foreign remittance is a major life blood of
rising economy of Bangladesh. In spite of declining
trend in manpower export from the country due to
global economic meltdown during the last couple
of years, Bangladesh registered 16.51 percent
growth in this sector in 2012 as against 2011.
Inward foreign remittance of the country for the
year 2012 is USD 14,176.91 million.

Agrani Bank Limited secured first position in
receiving foreign remittance among the state
owned commercial banks in 2012. ABL has
contributed 10.07 percent to the aggregate
remittance figure of the country and it is US$
1,427.33 million for the calendar year 2012. ABL
has a growth rate of 22.23 percent over the last
years achievement of US$ 1,167.76 million in
remittance business. The comparative studies of
remittances with the other banks are given below:
f) Guarantee Business
In 2012, the Bank issued guarantees worth Tk.
515.01 crore compared to Tk. 442.05 crore in the
previous year. The guarantees were issued in
favour of different government authorities,
autonomous bodies, corporations, multi-national
companies etc. against proper securities on behalf
of clients of the Bank.
g) Fund Management and Treasury Operation
In keeping with international standard and the
Central Bank's Guidelines for Core Risk
Management Policy, the Bank has restructured its
treasury functions into three sections i.e. 1) Money
Market, 2) Foreign Exchange (FX) and 3) Capital
Market or Equity Desk. Money Market is devoted
to maintaining CRR & SLR and buying and selling
interests bearing securities. FX desk buys and
sells foreign currencies. Equity desk deals with
equity and shares. Overall treasury function
operates through three segments i) Treasury Front
Office, 2) Treasury Mid Office and 3) Treasury
Back Office. Treasury Front Office deals with
operational activities, Mid Office for regulations
and monitoring, Back Office for settlement and
reconciliation.
Treasury Division has been playing a very vital role
instrumental to the advancement of the Bank. Two
major statutory requirements, CRR and SLR are
maintained efficiently by this Division. Asset
Liability Management is the most important job
done by the Treasury. A significant share of the
total income of the Bank has been contributed by
this Division through money market and FX
operations. The treasury of the bank is a major
player both in the inter bank money market and
foreign exchange market.
Item wise income of the Treasury Division in 2011
& 2012 is shown below:
ABL in line with remittance business expansion
policy has tied up with 4 new exchange houses
including renowned Western Union, US Money
Express Co., USA, NBL Money Transfer Sdn.
Bhd., Malaysia, Standard Express, USA in 2012.
At present, ABL has been under agreement with
52 exchange houses which was 48 in 2011. Apart
from this, work process is in progress to induct
Web Based remittance (Spot Cash) operation in
addition to EFT remittance with a number of Middle
East based remittance houses. Recently, Agrani
Exchange House Pvt. Limited, Singapore, a
subsidiary of Agrani Bank Limited has inaugurated
its 3rd branch in Jurong East, Singapore. Agrani
Remittance House Sdn. Bhd., Malaysia also
applied to the authority for expanding its branch
network. With a view to channelizing remittance in
an easier and cost-effective way from Canada and
Australia, ABL has already got approval from
Bangladesh Bank on 24 September 2012 and 10
October 2012 respectively and obtained
remittance business licenses from the authorities
of respective countries and expecting to collect
direct remittance very soon from there. To facilitate
remittance service to the Bangladeshi expatriates
living in the United States of America, ABL is in
process obtaining approval for a license from the
authority.
A huge number of Bangladeshi expatriates prefer
to send money through ABL for its better exchange
rate and also for its online remittance distribution
connectivity with all of its 889 branches having
cash payment service over the counter by using
Pin Code. To keep remittance flow up, ABL
sponsors different incentive programs for its
valuable customers. The country wise remittance
received by ABL in the year 2012:
Types of Deposits 2012 2011
Current and other Deposits 4,033.75 4,371.42
Savings Bank Deposits 8,925.53 8,532.08
Fixed Deposits 15,812.91 11,808.01
Bills Payable 470.73 509.33
Total 29,242.92 25,220.84
AvgvbZi aiY 2012 2011
PjwZ Ges Abvb AvgvbZ 4,033.75 4,371.42
mqx AvgvbZ 8,925.53 8,532.08
gqv`x AvgvbZ 15,812.91 11,808.01
c`q wej 470.73 509.33
gvU 29,242.92 25,220.84
2012 mvj evsKi AwRZ AMMwZ
eemvi mKj iZc~Y evsKi AMMwZ AevnZ
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Crore Taka Deposit Mix 2012
Savings Bank
Deposits
8925.53
Current and other
Deposits
4033.75
Bills Payable
470.73
Fixed
Deposits
15,812.91
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cvjb KiQ|
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mvji Avq c`kb Kiv nj:
With efficient and prudent handling of Treasury, a
functioning and effective Asset Liability Committee
regulates and articulates the Bank's total need,
exposures, rates and strategy for Asset Liability
Management. An effective ALM process has
enabled the Bank to efficiently manage and project
its asset and liability flow, resulting in a smooth
flow of all funding requirement of the bank while
maximizing all profit opportunities. The treasury
and its supporting offices have kept up their best
effort throughout the year and are determined to
keep it up for better management of Bank's assets
and liabilities.
h) Investment
The investment portfolio of the Bank at the end of
the year 2012 stood at Tk. 9,241.98 crore as
against Tk. 8,533.13 crore in the previous year,
registering a growth of 8.30 percent. The Bank has
always given emphasis on high yielding
investments and maintains Statutory Liquidity
Requirement (SLR) as fixed by Bangladesh Bank
vide BRPD circular no. 11 dated 25 August 2005
and circular no. 12 dated 25 August 2005. The
portfolio of investment of the Bank as on 31
December 2012 is shown below:
=<| <|<<< - < -| <<|| <|| <|<< |
-|<< ||--|, <<-|<, -< -|< |<|< =< - <
`vq eevcbvi KgKkj wbaviY Ki| Z`vbyhvqx URvwi
|| -| < |<|< |< - < -| <<||<
<|| << <|< = || =<| <|<<< - < -|
<<|| +|< |-|< - < -| <|-< <<|<<
|<|< |< -|< <|- ||+ << <| ||
<< <|< ||< =< =< -<|| | -<
| |< |< <|<< - < -| <<||
-|< |< |<|<||< <<| < -
R) wewbqvM
2012 mvj evsKi gvU wewbqvMi cwigvY wQj
9,241.98 KvwU UvKv| c~eeZx eQi Gi cwigvY wQj
8,533.13 KvwU UvKv| G cewi nvi 8.30
kZvsk| DP my` c`vbKvix wewbqvMi cwZ eiveiB evsK
< |- <||- <|<< |<|<|| |<|<
::, ||< -c | -c < :-, ||< -c |
-c <|| <|< |<|<<+ |< (|< |<#||
<|<) <| << <| -:- |< : |< <|<<
|<|| |<|| | |<
i) Loans and Advances
The loans and advances of the Bank grew
significantly in 2012. The total loans and advances
as on 31 December 2012 was Tk. 21,266.30 crore
as against Tk. 19,408.56 crore at the end of
previous year, showing an increase of 9.57
percent.
The advance portfolio of the Bank is well
diversified and covers funding to a wide spectrum
of business and industries including agro-based
and agro-processing, ship breaking, steel &
engineering, paper & paper products, chemicals,
construction, real estate and loans under
consumers credit schemes, various trading
businesses, service-holders loan and women
entrepreneurs of the country.
S) FY I AwMg
2012 mvj FY I AwMgi cwigvY DjLhvM nvi ew
cqQ| AvjvP mvji kl FY I AwMgi gvU cwigvY
wQj 21,266.30 KvwU UvKv| c~eeZx eQi Gi cwigvY
wQj 19,408.56 KvwU UvKv| G cewi nvi 9.57
kZvsk|
evsKi FYi AvIZvq iqQ wewfb kYxi FY Ges Zv
wewfb LvZ mvwjZ| eemv I wki hme DcLvZ Zv
+|| - | - t =|| <# =< =||
| |r, | <|<, | =< #|=|||<, |< <
|< ||, <|<|, ||, |<|, <||<
wWU xg, wewfb eemvwqK Kvhg, bvix D`vv Ges
|<|<||<
Crore Taka Deposit Mix 2011 and 2012
2012
Current and
other deposit
Savings Bank
Deposits
Fixed Deposits Bills Payable
5
0
9
.
3
3
4
7
0
.
7
3
1
1
8
0
8
.
0
1 1
5
,
8
1
2
.
9
1
8
5
3
2
.
0
8
8
,
9
2
5
.
5
3
4
3
7
1
.
4
2
4
,
0
3
3
.
7
5
2011
KvwU UvKvq Taka in Crore
82
The plan contains necessary strategies to
overcome the challenges in terms of turning the
country into a medium income economy. The
major goals of this vision are: to accelerate the
growth rate up to 10 percent by 2021, to raise per
capita income up to US$ 2,000, to reduce the
number of population living under poverty line to
13.50 percent, to reduce the unemployment rate
into 15 percent, to increase annual per head
electricity consumption to 600 kilowatt hour and to
strengthen IT sector for building a Digital
Bangladesh.
Emergence of Agrani Bank limited
Agrani Bank Limited started its journey as a Public
Limited Company on 17 May 2007 and took over
the business, assets, liabilities, rights and
obligations of the former Agrani Bank, which
emerged as a Nationalized Commercial Bank in
1972, pursuant to the Bangladesh Banks
Nationalization Order 1972 (President's Order No.
26 of 1972), on a going concern basis through a
Vendor's Agreement. The Agreement was signed
between the Ministry of Finance, Government of
the People's Republic of Bangladesh on behalf of
ga Avqi `k icvii Pvj gvKvejv I Gi Rb
cqvRbxq Kkjmg~n iqQ G cwiKbvq| Gi cavb
jjv nQ: 2021 mvj bvMv` cew nvi 10 kZvsk
DbxZ Kiv, gv_vwcQy Avq 2,000 gvwKb Wjvi DbxZ Kiv,
`vwi` mxgvi wbP emevmKvix RbMYi msLv 13.50
kZvsk bvwgq Avbv, eKviZ nvi 15 kZvsk bvwgq
Avbv, evwlK gv_vwcQy we`yr eenvi 600 wKjvIqvU NUvq
DbxZ Kiv Ges wWwRUvj evsjv`k MVbi Rb Z_ chyw
eevK kwkvjx Kiv|
AMYx evsK wjwgUWi AvZcKvk
17 g 2007 ZvwiL AMYx evsK GKwU cvewjK wjwgUW
<||| |-< |<| << '| <|< ||'
| '| <|<'-=< <<|, -, -|, |<<|< <
KZZ AwaMnY Ki| 1972 mvj evsjv`k evsK mg~n
RvZxqKiY Av`k ej (cwmWUi AWvi bs 26, 1972
|) | <|< || - |<-< <| -
:c < -- | =<| < |< |< <|
MYcRvZx evsjv`k miKvii A_ gYvjq wQj AMYx
Asset Portfolio
The year-end asset portfolio scenarios of the bank in
2011 and 2012 are appended below:
Business Performance
a) Deposits
At the end of December 2012, the deposit of the bank
stood at Tk. 29,242.92 crore compared to Tk. 25,220.84
crore at the end of previous year leading to a
year-on-year growth in deposit of 15.95 percent. Given
the adverse economic scenario of the country during the
year under review, this growth rate is a remarkable
achievement.
In the prevailing situation, mobiliziation of deposits
became highly competitive and as a result, the average
cost of fund for the banks in the private sector increased
compared to that of the previous year. The bank,
therefore, decided to mobilize low cost fund. The deposit
mix of the bank as on 31 December 2012 was as
follows:
the former Agrani Bank and the Board of Directors
of the Bank on behalf of Agrani Bank Limited on 15
November 2007 with retrospective effect from 01
July 2007.
All shares of the bank are held by the Government
of the People's Republic of Bangladesh and 12
other shareholders (with one share each, the
qualification share required to become a director)
nominated by the Government.
The bank has 889 branches as of 31 December
2012 with no overseas branch. The bank has,
however, two at home and four in abroad named,
1) Agrani Equity and Investment Limited, 2) Agrani
SME Financing Company Limited, 3) Agrani
Exchange House Private Limited in Singapore, 4)
Agrani Remittance House Sdn., Bhd. in Kuala
Lumpur, Malaysia, 5) Agrani Remittance House
Canada Inc. in Canada and 6) Agrani Exchange
Company (Australia) Pty. Limited in Australia.
<|<-=< c Ges AMYx evsK wjwgUWi c wQj Gi
cwiPvjbv cwil`| GB AwaMnY KvhKi Kiv nq 1 RyjvB
2007 _K|
evsKi mg kqvii gvwjK MYcRvZx evsjv`k
miKvi Ges AviI 12 Rb kqvinvvi hviv miKvi KZK
gbvbxZ| GB 12 Rbi cZKB gv GKwU Ki kqvii
aviK hv cwiPvjKi hvMZvg~jK kqvii b~bZg
cwigvY|
-:- |< : |< < <|<< ||< | |
889wU| `k 2wU Ges we`k AewZ 4wU wbq AMYx
<|<< | ||<|| :| |<||||< <|||
iqQ h<|- :) '| #<#| =| #
||', -) '| ==# |#||* <|||
||', ) '| =?= -| |# ||,
|*|<', -) '| <||* -|, =|=. |<=#|.,
<|||<, |||', c) '| <||* -|,
<||| |#=|., <|||' =< :) '| =?=
<||| (||) ||<|#. ||, ||'
ABLs Progress Achieved in 2012
In all major areas, the bank made remarkable
progress. Deposits grew by 15.95 percent in 2012
and reached Tk. 29,243 crore from Tk. 25,221
crore in 2011. Total loans and advances in 2012
stood at TK. 21,266 crore as against Tk. 19,409
crore in 2011; which is 9.57 percent higher than
that of the previous year. The operating profit stood
at Tk. 1,007 crore at the end of 2012.
Shareholders Equity
The shareholders equity of the bank as on 31
December 2012 stood at Tk. 717 crore. The
paid-up capital of the bank has increased from Tk.
901.18 crore to Tk. 991.29 crore due to issuance of
bonus shares.
Funding Structure
The year-end funding structures of the bank in
2011 and 2012 are given below:
b) Asset Quality
The Bank maintained quality of its asset and this is
one of the strong areas of its operation. The bank
did not compromise with its standard of excellence
in terms of maintaining asset quality while
extending credit facilities. In order to improve the
quality of our assets, the Bank Management has
prioritised financing in trade and commerce by
providing working capital. Moreover, some
pragmatic steps have been taken to reduce
non-performing loans as well as to prevent new
classification thereof.
c) International Trade
The international trade financing is one of the
major business activities conducted by the bank.
The foreign trade related activities of the bank,
carried out through 40 branches across the
country, have earned confidence of importers and
exporters. For smooth operation of international
trade, the bank has a network of 429 foreign
correspondents throughout the world. In addition,
the bank is maintaining 43 NOSTRO accounts with
the worlds leading banks.
d) Import-Export Business
In 2012 the import business stood at Tk. 16,963
crore in and the export business was Tk. 8,838
crore.
e) Foreign Remittance Business
Inward foreign remittance is a major life blood of
rising economy of Bangladesh. In spite of declining
trend in manpower export from the country due to
global economic meltdown during the last couple
of years, Bangladesh registered 16.51 percent
growth in this sector in 2012 as against 2011.
Inward foreign remittance of the country for the
year 2012 is USD 14,176.91 million.

Agrani Bank Limited secured first position in
receiving foreign remittance among the state
owned commercial banks in 2012. ABL has
contributed 10.07 percent to the aggregate
remittance figure of the country and it is US$
1,427.33 million for the calendar year 2012. ABL
has a growth rate of 22.23 percent over the last
years achievement of US$ 1,167.76 million in
remittance business. The comparative studies of
remittances with the other banks are given below:
f) Guarantee Business
In 2012, the Bank issued guarantees worth Tk.
515.01 crore compared to Tk. 442.05 crore in the
previous year. The guarantees were issued in
favour of different government authorities,
autonomous bodies, corporations, multi-national
companies etc. against proper securities on behalf
of clients of the Bank.
g) Fund Management and Treasury Operation
In keeping with international standard and the
Central Bank's Guidelines for Core Risk
Management Policy, the Bank has restructured its
treasury functions into three sections i.e. 1) Money
Market, 2) Foreign Exchange (FX) and 3) Capital
Market or Equity Desk. Money Market is devoted
to maintaining CRR & SLR and buying and selling
interests bearing securities. FX desk buys and
sells foreign currencies. Equity desk deals with
equity and shares. Overall treasury function
operates through three segments i) Treasury Front
Office, 2) Treasury Mid Office and 3) Treasury
Back Office. Treasury Front Office deals with
operational activities, Mid Office for regulations
and monitoring, Back Office for settlement and
reconciliation.
Treasury Division has been playing a very vital role
instrumental to the advancement of the Bank. Two
major statutory requirements, CRR and SLR are
maintained efficiently by this Division. Asset
Liability Management is the most important job
done by the Treasury. A significant share of the
total income of the Bank has been contributed by
this Division through money market and FX
operations. The treasury of the bank is a major
player both in the inter bank money market and
foreign exchange market.
Item wise income of the Treasury Division in 2011
& 2012 is shown below:
ABL in line with remittance business expansion
policy has tied up with 4 new exchange houses
including renowned Western Union, US Money
Express Co., USA, NBL Money Transfer Sdn.
Bhd., Malaysia, Standard Express, USA in 2012.
At present, ABL has been under agreement with
52 exchange houses which was 48 in 2011. Apart
from this, work process is in progress to induct
Web Based remittance (Spot Cash) operation in
addition to EFT remittance with a number of Middle
East based remittance houses. Recently, Agrani
Exchange House Pvt. Limited, Singapore, a
subsidiary of Agrani Bank Limited has inaugurated
its 3rd branch in Jurong East, Singapore. Agrani
Remittance House Sdn. Bhd., Malaysia also
applied to the authority for expanding its branch
network. With a view to channelizing remittance in
an easier and cost-effective way from Canada and
Australia, ABL has already got approval from
Bangladesh Bank on 24 September 2012 and 10
October 2012 respectively and obtained
remittance business licenses from the authorities
of respective countries and expecting to collect
direct remittance very soon from there. To facilitate
remittance service to the Bangladeshi expatriates
living in the United States of America, ABL is in
process obtaining approval for a license from the
authority.
A huge number of Bangladeshi expatriates prefer
to send money through ABL for its better exchange
rate and also for its online remittance distribution
connectivity with all of its 889 branches having
cash payment service over the counter by using
Pin Code. To keep remittance flow up, ABL
sponsors different incentive programs for its
valuable customers. The country wise remittance
received by ABL in the year 2012:
2012 mvj evsKi AwRZ AMMwZ
eemvi mKj iZc~Y evsKi AMMwZ AevnZ
iqQ| 2012 mvj AvgvbZ ew cqQ 15.95 kZvsk|
2011 mvj AvgvbZi cwigvY 25,221 KvwU UvKv| 2012
mvji kl AvgvbZi cwigvY `vuovq 29,243 KvwU
UvKv| 2011 mvji 19,409 KvwU UvKv FY I AwMgi
wecixZ 2012 mvji kl FY I AwMgi cwigvY
`vuwoqQ 21,266 KvwU UvKv, hv c~eeZx eQii Pq
kZKiv wnmve cewi nvi `vuovq 9.57 kZvsk| 2012
| |<| || -||$ :,- <|| |<|
kqvinvvim BKzBwU
-:- |< |< < <|<< | |<-||<-<
#<#|< |<| | -:- <|| |<| <|| |< #
<<|< |<||< < >:.:- <|| |<| <<
ew cq 991.29 KvwU UvKvq DbxZ nqQ|
Znwej KvVvgv
2011 Ges 2012 mvji kl evsKi Znwej KvVvgv wQj
|<t
m`i cvUdvwjI
-:: =< -:- |< < <|<< -<
|||< | |<t
eemvq AMMwZ
K) AvgvbZ
-:- |< |< < <|<< ||< |<|
wQj 29,242.92 KvwU UvKv hv MZeQi wQj 25,220.84
KvwU UvKv| GZ G cewi nvi `vuovq 15.95
kZvsk| AvjvP eQii g`v cwiwwZ mI AvgvbZi
cewi nvi wQj DjLhvM|
Pjgvb Aevq AvgvbZ msMn AZ cwZhvwMZvg~jK
|<< - -||$ <<| <<< | -|< <
<|+ = <|< |<| || -<
- | - : |< -:- | <|<<
||< | |<
L) m`i gvb
| <|< |< -< | <| << <|
=< |<|| |< =<| |-< -< | ||+ <<#
<|< << -| - <| <|<< -<
<<|< |< << ||< <<| - | -<
YMZ gvb ewi Rb evsK eemv I evwYR FY `qvK
AMvwaKvi w`Q Ges G PjwZ g~jab FY c`vb
<< ||<|| < |<| <|+ <|<<r
Ges cyibv kYxwebvwmZ FYi UvKv Av`vqc~eK Kwgq
Avbvi Rb wekl eev bqv nqQ|
M) AvRvwZK evwYR
evsK h mg LvZ A_vqb Ki AvRvwZK evwYR
<| < =<| <| |<| | <<
-| <-|< <|| -<||< ||< |< ||-
|||< <|| | <<| |-||<|<< =<
ivwbKviKMYi Avv ARb KiZ mg nqQ| `fve
AvRvwZK evwYR Kivi Rb mviv wek AMYx evsKi
< -->| |<-| '<<' |<<, <|< |<<
|||<| <|<|< * -| '|' =<|
cwiPvjbv KiQ|
N) Avg`vwb-ivwb eemv
2012 mvj Avg`vwb eemvq A_vqb nqQ 16,963 KvwU
UvKv Ges ivwb eemvq A_vqb Kiv nqQ 8,838 KvwU
UvKv|
Name of Bank 2009 2010 2011 2012
Islami Bank (BD) Limited 2,251.22 3,012.00 3,171.31 3,913.07
Agrani Bank Limited 813.34 989.33 1,167.76 1,427.33
Sonali Bank Limited 1,034.65 1,264.42 1,227.04 1,426.07
Janata Bank Limited 818.02 760.30 950.37 1,221.47
Other Banks 5,825.80 4,713.90 5,651.61 6,188.97
Total 10,743.03 10,739.95 12,168.09 14,176.91
An agreement is signed and handed over inbetween ABL and with the local representative of New York based
remittance company Placid Express
O) e`wkK iwgUv eemv
evsjv`ki geagvb A_bxwZi AbZg cvYkw njv
| <||* <|- |< <<| |<-|<
KviY evsjv`k nZ Rbkw ivwb nvm mI 2011
|< | << -< <||* ::.c: |
cew AwRZ nqQ| 2012 mb `ki AgyLx
<||*< |<| :-,:-:.>: || ||< |<
-:- | | <||* <|- | <|< ||
-< <|| ||<||<| <|<-< < < |
AwaKvi KiQ| GKB eQi `ki mvgwMK AgyLx
<||* <|- | <|< || =< |-| :.-
kZvsk hvi cwigvY 1,427.33 wgwjqb gvwKb Wjvi|
-:: | <|<< | <||*< |<| |
1,167.76 wgwjqb gvwKb Wjvi| 2012 mvj AMYx
<|<< <||* <|- --.- | <|+ |
nqQ| wewfb evsKi mv_ AMYx evsK wjwgUWi
<||*< |< | |<
-:- | | <|< || |< <||* |-<
<|< |<< |< <<|< | <||< <||*
nvDR Western Union, US Money Express Co. USA,
NBL Money Transfer Sdn, Bhd, Malaysia, Standard
Express, USA - -| =?= -|< |<
|<+ - -:: < --| =?= -|-
eZgvb ABL | c-| <-|< =?= -|< |<
|<+ < =|$| <|< <| ||< <<|
=?= -|< |< EFT <||* =< |||| <<
< <||* <<| |< | | ||< <||
<||-|-< <|<< | =?= -| '|
=?= -| |t ||, ||<' =< < #-=
| || | <<| - =< ||| '|
<||* -| =|=. |<=#|.' =< |<< ||
Lvjvi Rb Ave`b Kiv nqQ| cevmx evsjv`kx`i
<||* < - < < || <<|< <||| =<
|| <|< <||* -| ||< <<|=
-- < -:- =< : |<< -:- ||<
<||- <|<< |- | << =< | -
-'|< << <| << |#* - << - -'|
- | <|< |# <||< <||* |-< <<
<<< <<| <|| <||-|-< -|<|$| <||*
mev cuQ `Iqvi j AMYx evsK wjwgUW GKwU
| =?= -| ||< |=| << <<
<|<< -->| || |# <||* |||<
<|< <|<| | <|< |< <||*< <
|<|< <<| | < |<|||< =?= <
c`vbi KviY wecyj msLK cevmx evsjv`kx AMYx evsK
||< |< <||* < << = <|<| <|-
<||< | <|< <|||||</<||<-<
|<| <| -|< -|< |< +<< <|
cwiPvjbv KiQ| 2012 mvj wewfb `k nZ A evsKi
| <||*< | |<
P) MvivwU eemv
2012 mvj MvivwU eemvq evsK 515.01 KvwU
UvKvi MvivwU c`vb Ki, hvi cwigvY 2011 mvj wQj
442.05 KvwU UvKv| Dchy RvgvbZi wecixZ
MvnK`i c evsK KZK wewfb miKvwi,
||| ||/|, <||< <|||<
AbyK~j MvivwU c`vb Kiv nq|
Q) Znwej eevcbv Ges URvix Kvhg
<-| <|<< <|< |< | |# |#*
Ges AvRvwZK gvbi mv_ mvgm iL A
<|<< ||< <|<=< (:) || |<, (-) <
=?= < () <||| |< <| #<#| -=
wZbwU Ask cybMVb Kiv nqQ| gvwb gvKU CRR I
SLR msiY Ges my`wfwK wmwKDwiwUR q weqi
|< < =?= <-|< -| =
|<= << <|< #<#| |< < #<#|
wewbqvM Ki _vK| URvwi wWwfkbi mvweK Kvhg
:) ||< |, -) ||< | | < )
||< <|< | =< |< ||- - <|<
| |<| <|<=, | | <
< ||< =< <|< | <
wiKbwmwjqkbi KvR Ki _vK|
evsKi AMMwZi URvwi wWwfkbi iZ
Acwimxg| cavb `ywU mswewae Rgv CRR I SLR
msiYi KvR URvwi wWwfkb `Zvi mv_ Ki
<|< - < -| <<||< < <
<|| ||< || |- << <|<< |<
=<| <$ || |< < < =?= -
| - <|<< ||< || |t <|<
|| |< < < =?= |< < |<|
cvjb KiQ|
| |<|<| ||< ||< -:: < -:-
mvji Avq c`kb Kiv nj:
With efficient and prudent handling of Treasury, a
functioning and effective Asset Liability Committee
regulates and articulates the Bank's total need,
exposures, rates and strategy for Asset Liability
Management. An effective ALM process has
enabled the Bank to efficiently manage and project
its asset and liability flow, resulting in a smooth
flow of all funding requirement of the bank while
maximizing all profit opportunities. The treasury
and its supporting offices have kept up their best
effort throughout the year and are determined to
keep it up for better management of Bank's assets
and liabilities.
h) Investment
The investment portfolio of the Bank at the end of
the year 2012 stood at Tk. 9,241.98 crore as
against Tk. 8,533.13 crore in the previous year,
registering a growth of 8.30 percent. The Bank has
always given emphasis on high yielding
investments and maintains Statutory Liquidity
Requirement (SLR) as fixed by Bangladesh Bank
vide BRPD circular no. 11 dated 25 August 2005
and circular no. 12 dated 25 August 2005. The
portfolio of investment of the Bank as on 31
December 2012 is shown below:
=<| <|<<< - < -| <<|| <|| <|<< |
-|<< ||--|, <<-|<, -< -|< |<|< =< - <
`vq eevcbvi KgKkj wbaviY Ki| Z`vbyhvqx URvwi
|| -| < |<|< |< - < -| <<||<
<|| << <|< = || =<| <|<<< - < -|
<<|| +|< |-|< - < -| <|-< <<|<<
|<|< |< -|< <|- ||+ << <| ||
<< <|< ||< =< =< -<|| | -<
| |< |< <|<< - < -| <<||
-|< |< |<|<||< <<| < -
R) wewbqvM
2012 mvj evsKi gvU wewbqvMi cwigvY wQj
9,241.98 KvwU UvKv| c~eeZx eQi Gi cwigvY wQj
8,533.13 KvwU UvKv| G cewi nvi 8.30
kZvsk| DP my` c`vbKvix wewbqvMi cwZ eiveiB evsK
< |- <||- <|<< |<|<|| |<|<
::, ||< -c | -c < :-, ||< -c |
-c <|| <|< |<|<<+ |< (|< |<#||
<|<) <| << <| -:- |< : |< <|<<
|<|| |<|| | |<
i) Loans and Advances
The loans and advances of the Bank grew
significantly in 2012. The total loans and advances
as on 31 December 2012 was Tk. 21,266.30 crore
as against Tk. 19,408.56 crore at the end of
previous year, showing an increase of 9.57
percent.
The advance portfolio of the Bank is well
diversified and covers funding to a wide spectrum
of business and industries including agro-based
and agro-processing, ship breaking, steel &
engineering, paper & paper products, chemicals,
construction, real estate and loans under
consumers credit schemes, various trading
businesses, service-holders loan and women
entrepreneurs of the country.
S) FY I AwMg
2012 mvj FY I AwMgi cwigvY DjLhvM nvi ew
cqQ| AvjvP mvji kl FY I AwMgi gvU cwigvY
wQj 21,266.30 KvwU UvKv| c~eeZx eQi Gi cwigvY
wQj 19,408.56 KvwU UvKv| G cewi nvi 9.57
kZvsk|
evsKi FYi AvIZvq iqQ wewfb kYxi FY Ges Zv
wewfb LvZ mvwjZ| eemv I wki hme DcLvZ Zv
+|| - | - t =|| <# =< =||
| |r, | <|<, | =< #|=|||<, |< <
|< ||, <|<|, ||, |<|, <||<
wWU xg, wewfb eemvwqK Kvhg, bvix D`vv Ges
|<|<||<
Million USD Bank-wise Position of Remittance
Year
* Source: Bangladesh Bank website
Annual Report 2012 83
The plan contains necessary strategies to
overcome the challenges in terms of turning the
country into a medium income economy. The
major goals of this vision are: to accelerate the
growth rate up to 10 percent by 2021, to raise per
capita income up to US$ 2,000, to reduce the
number of population living under poverty line to
13.50 percent, to reduce the unemployment rate
into 15 percent, to increase annual per head
electricity consumption to 600 kilowatt hour and to
strengthen IT sector for building a Digital
Bangladesh.
Emergence of Agrani Bank limited
Agrani Bank Limited started its journey as a Public
Limited Company on 17 May 2007 and took over
the business, assets, liabilities, rights and
obligations of the former Agrani Bank, which
emerged as a Nationalized Commercial Bank in
1972, pursuant to the Bangladesh Banks
Nationalization Order 1972 (President's Order No.
26 of 1972), on a going concern basis through a
Vendor's Agreement. The Agreement was signed
between the Ministry of Finance, Government of
the People's Republic of Bangladesh on behalf of
ga Avqi `k icvii Pvj gvKvejv I Gi Rb
cqvRbxq Kkjmg~n iqQ G cwiKbvq| Gi cavb
jjv nQ: 2021 mvj bvMv` cew nvi 10 kZvsk
DbxZ Kiv, gv_vwcQy Avq 2,000 gvwKb Wjvi DbxZ Kiv,
`vwi` mxgvi wbP emevmKvix RbMYi msLv 13.50
kZvsk bvwgq Avbv, eKviZ nvi 15 kZvsk bvwgq
Avbv, evwlK gv_vwcQy we`yr eenvi 600 wKjvIqvU NUvq
DbxZ Kiv Ges wWwRUvj evsjv`k MVbi Rb Z_ chyw
eevK kwkvjx Kiv|
AMYx evsK wjwgUWi AvZcKvk
17 g 2007 ZvwiL AMYx evsK GKwU cvewjK wjwgUW
<||| |-< |<| << '| <|< ||'
| '| <|<'-=< <<|, -, -|, |<<|< <
KZZ AwaMnY Ki| 1972 mvj evsjv`k evsK mg~n
RvZxqKiY Av`k ej (cwmWUi AWvi bs 26, 1972
|) | <|< || - |<-< <| -
:c < -- | =<| < |< |< <|
MYcRvZx evsjv`k miKvii A_ gYvjq wQj AMYx
Asset Portfolio
The year-end asset portfolio scenarios of the bank in
2011 and 2012 are appended below:
Business Performance
a) Deposits
At the end of December 2012, the deposit of the bank
stood at Tk. 29,242.92 crore compared to Tk. 25,220.84
crore at the end of previous year leading to a
year-on-year growth in deposit of 15.95 percent. Given
the adverse economic scenario of the country during the
year under review, this growth rate is a remarkable
achievement.
In the prevailing situation, mobiliziation of deposits
became highly competitive and as a result, the average
cost of fund for the banks in the private sector increased
compared to that of the previous year. The bank,
therefore, decided to mobilize low cost fund. The deposit
mix of the bank as on 31 December 2012 was as
follows:
the former Agrani Bank and the Board of Directors
of the Bank on behalf of Agrani Bank Limited on 15
November 2007 with retrospective effect from 01
July 2007.
All shares of the bank are held by the Government
of the People's Republic of Bangladesh and 12
other shareholders (with one share each, the
qualification share required to become a director)
nominated by the Government.
The bank has 889 branches as of 31 December
2012 with no overseas branch. The bank has,
however, two at home and four in abroad named,
1) Agrani Equity and Investment Limited, 2) Agrani
SME Financing Company Limited, 3) Agrani
Exchange House Private Limited in Singapore, 4)
Agrani Remittance House Sdn., Bhd. in Kuala
Lumpur, Malaysia, 5) Agrani Remittance House
Canada Inc. in Canada and 6) Agrani Exchange
Company (Australia) Pty. Limited in Australia.
<|<-=< c Ges AMYx evsK wjwgUWi c wQj Gi
cwiPvjbv cwil`| GB AwaMnY KvhKi Kiv nq 1 RyjvB
2007 _K|
evsKi mg kqvii gvwjK MYcRvZx evsjv`k
miKvi Ges AviI 12 Rb kqvinvvi hviv miKvi KZK
gbvbxZ| GB 12 Rbi cZKB gv GKwU Ki kqvii
aviK hv cwiPvjKi hvMZvg~jK kqvii b~bZg
cwigvY|
-:- |< : |< < <|<< ||< | |
889wU| `k 2wU Ges we`k AewZ 4wU wbq AMYx
<|<< | ||<|| :| |<||||< <|||
iqQ h<|- :) '| #<#| =| #
||', -) '| ==# |#||* <|||
||', ) '| =?= -| |# ||,
|*|<', -) '| <||* -|, =|=. |<=#|.,
<|||<, |||', c) '| <||* -|,
<||| |#=|., <|||' =< :) '| =?=
<||| (||) ||<|#. ||, ||'
ABLs Progress Achieved in 2012
In all major areas, the bank made remarkable
progress. Deposits grew by 15.95 percent in 2012
and reached Tk. 29,243 crore from Tk. 25,221
crore in 2011. Total loans and advances in 2012
stood at TK. 21,266 crore as against Tk. 19,409
crore in 2011; which is 9.57 percent higher than
that of the previous year. The operating profit stood
at Tk. 1,007 crore at the end of 2012.
Shareholders Equity
The shareholders equity of the bank as on 31
December 2012 stood at Tk. 717 crore. The
paid-up capital of the bank has increased from Tk.
901.18 crore to Tk. 991.29 crore due to issuance of
bonus shares.
Funding Structure
The year-end funding structures of the bank in
2011 and 2012 are given below:
b) Asset Quality
The Bank maintained quality of its asset and this is
one of the strong areas of its operation. The bank
did not compromise with its standard of excellence
in terms of maintaining asset quality while
extending credit facilities. In order to improve the
quality of our assets, the Bank Management has
prioritised financing in trade and commerce by
providing working capital. Moreover, some
pragmatic steps have been taken to reduce
non-performing loans as well as to prevent new
classification thereof.
c) International Trade
The international trade financing is one of the
major business activities conducted by the bank.
The foreign trade related activities of the bank,
carried out through 40 branches across the
country, have earned confidence of importers and
exporters. For smooth operation of international
trade, the bank has a network of 429 foreign
correspondents throughout the world. In addition,
the bank is maintaining 43 NOSTRO accounts with
the worlds leading banks.
d) Import-Export Business
In 2012 the import business stood at Tk. 16,963
crore in and the export business was Tk. 8,838
crore.
e) Foreign Remittance Business
Inward foreign remittance is a major life blood of
rising economy of Bangladesh. In spite of declining
trend in manpower export from the country due to
global economic meltdown during the last couple
of years, Bangladesh registered 16.51 percent
growth in this sector in 2012 as against 2011.
Inward foreign remittance of the country for the
year 2012 is USD 14,176.91 million.

Agrani Bank Limited secured first position in
receiving foreign remittance among the state
owned commercial banks in 2012. ABL has
contributed 10.07 percent to the aggregate
remittance figure of the country and it is US$
1,427.33 million for the calendar year 2012. ABL
has a growth rate of 22.23 percent over the last
years achievement of US$ 1,167.76 million in
remittance business. The comparative studies of
remittances with the other banks are given below:
f) Guarantee Business
In 2012, the Bank issued guarantees worth Tk.
515.01 crore compared to Tk. 442.05 crore in the
previous year. The guarantees were issued in
favour of different government authorities,
autonomous bodies, corporations, multi-national
companies etc. against proper securities on behalf
of clients of the Bank.
g) Fund Management and Treasury Operation
In keeping with international standard and the
Central Bank's Guidelines for Core Risk
Management Policy, the Bank has restructured its
treasury functions into three sections i.e. 1) Money
Market, 2) Foreign Exchange (FX) and 3) Capital
Market or Equity Desk. Money Market is devoted
to maintaining CRR & SLR and buying and selling
interests bearing securities. FX desk buys and
sells foreign currencies. Equity desk deals with
equity and shares. Overall treasury function
operates through three segments i) Treasury Front
Office, 2) Treasury Mid Office and 3) Treasury
Back Office. Treasury Front Office deals with
operational activities, Mid Office for regulations
and monitoring, Back Office for settlement and
reconciliation.
Treasury Division has been playing a very vital role
instrumental to the advancement of the Bank. Two
major statutory requirements, CRR and SLR are
maintained efficiently by this Division. Asset
Liability Management is the most important job
done by the Treasury. A significant share of the
total income of the Bank has been contributed by
this Division through money market and FX
operations. The treasury of the bank is a major
player both in the inter bank money market and
foreign exchange market.
Item wise income of the Treasury Division in 2011
& 2012 is shown below:
ABL in line with remittance business expansion
policy has tied up with 4 new exchange houses
including renowned Western Union, US Money
Express Co., USA, NBL Money Transfer Sdn.
Bhd., Malaysia, Standard Express, USA in 2012.
At present, ABL has been under agreement with
52 exchange houses which was 48 in 2011. Apart
from this, work process is in progress to induct
Web Based remittance (Spot Cash) operation in
addition to EFT remittance with a number of Middle
East based remittance houses. Recently, Agrani
Exchange House Pvt. Limited, Singapore, a
subsidiary of Agrani Bank Limited has inaugurated
its 3rd branch in Jurong East, Singapore. Agrani
Remittance House Sdn. Bhd., Malaysia also
applied to the authority for expanding its branch
network. With a view to channelizing remittance in
an easier and cost-effective way from Canada and
Australia, ABL has already got approval from
Bangladesh Bank on 24 September 2012 and 10
October 2012 respectively and obtained
remittance business licenses from the authorities
of respective countries and expecting to collect
direct remittance very soon from there. To facilitate
remittance service to the Bangladeshi expatriates
living in the United States of America, ABL is in
process obtaining approval for a license from the
authority.
A huge number of Bangladeshi expatriates prefer
to send money through ABL for its better exchange
rate and also for its online remittance distribution
connectivity with all of its 889 branches having
cash payment service over the counter by using
Pin Code. To keep remittance flow up, ABL
sponsors different incentive programs for its
valuable customers. The country wise remittance
received by ABL in the year 2012:
2012 mvj evsKi AwRZ AMMwZ
eemvi mKj iZc~Y evsKi AMMwZ AevnZ
iqQ| 2012 mvj AvgvbZ ew cqQ 15.95 kZvsk|
2011 mvj AvgvbZi cwigvY 25,221 KvwU UvKv| 2012
mvji kl AvgvbZi cwigvY `vuovq 29,243 KvwU
UvKv| 2011 mvji 19,409 KvwU UvKv FY I AwMgi
wecixZ 2012 mvji kl FY I AwMgi cwigvY
`vuwoqQ 21,266 KvwU UvKv, hv c~eeZx eQii Pq
kZKiv wnmve cewi nvi `vuovq 9.57 kZvsk| 2012
| |<| || -||$ :,- <|| |<|
kqvinvvim BKzBwU
-:- |< |< < <|<< | |<-||<-<
#<#|< |<| | -:- <|| |<| <|| |< #
<<|< |<||< < >:.:- <|| |<| <<
ew cq 991.29 KvwU UvKvq DbxZ nqQ|
Znwej KvVvgv
2011 Ges 2012 mvji kl evsKi Znwej KvVvgv wQj
|<t
m`i cvUdvwjI
-:: =< -:- |< < <|<< -<
|||< | |<t
eemvq AMMwZ
K) AvgvbZ
-:- |< |< < <|<< ||< |<|
wQj 29,242.92 KvwU UvKv hv MZeQi wQj 25,220.84
KvwU UvKv| GZ G cewi nvi `vuovq 15.95
kZvsk| AvjvP eQii g`v cwiwwZ mI AvgvbZi
cewi nvi wQj DjLhvM|
Pjgvb Aevq AvgvbZ msMn AZ cwZhvwMZvg~jK
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<|+ = <|< |<| || -<
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L) m`i gvb
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YMZ gvb ewi Rb evsK eemv I evwYR FY `qvK
AMvwaKvi w`Q Ges G PjwZ g~jab FY c`vb
<< ||<|| < |<| <|+ <|<<r
Ges cyibv kYxwebvwmZ FYi UvKv Av`vqc~eK Kwgq
Avbvi Rb wekl eev bqv nqQ|
M) AvRvwZK evwYR
evsK h mg LvZ A_vqb Ki AvRvwZK evwYR
<| < =<| <| |<| | <<
-| <-|< <|| -<||< ||< |< ||-
|||< <|| | <<| |-||<|<< =<
ivwbKviKMYi Avv ARb KiZ mg nqQ| `fve
AvRvwZK evwYR Kivi Rb mviv wek AMYx evsKi
< -->| |<-| '<<' |<<, <|< |<<
|||<| <|<|< * -| '|' =<|
cwiPvjbv KiQ|
N) Avg`vwb-ivwb eemv
2012 mvj Avg`vwb eemvq A_vqb nqQ 16,963 KvwU
UvKv Ges ivwb eemvq A_vqb Kiv nqQ 8,838 KvwU
UvKv|
O) e`wkK iwgUv eemv
evsjv`ki geagvb A_bxwZi AbZg cvYkw njv
| <||* <|- |< <<| |<-|<
KviY evsjv`k nZ Rbkw ivwb nvm mI 2011
|< | << -< <||* ::.c: |
cew AwRZ nqQ| 2012 mb `ki AgyLx
<||*< |<| :-,:-:.>: || ||< |<
-:- | | <||* <|- | <|< ||
-< <|| ||<||<| <|<-< < < |
AwaKvi KiQ| GKB eQi `ki mvgwMK AgyLx
<||* <|- | <|< || =< |-| :.-
kZvsk hvi cwigvY 1,427.33 wgwjqb gvwKb Wjvi|
-:: | <|<< | <||*< |<| |
1,167.76 wgwjqb gvwKb Wjvi| 2012 mvj AMYx
<|<< <||* <|- --.- | <|+ |
nqQ| wewfb evsKi mv_ AMYx evsK wjwgUWi
<||*< |< | |<
-:- | | <|< || |< <||* |-<
<|< |<< |< <<|< | <||< <||*
nvDR Western Union, US Money Express Co. USA,
NBL Money Transfer Sdn, Bhd, Malaysia, Standard
Express, USA - -| =?= -|< |<
|<+ - -:: < --| =?= -|-
eZgvb ABL | c-| <-|< =?= -|< |<
|<+ < =|$| <|< <| ||< <<|
=?= -|< |< EFT <||* =< |||| <<
< <||* <<| |< | | ||< <||
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=?= -| |t ||, ||<' =< < #-=
| || | <<| - =< ||| '|
<||* -| =|=. |<=#|.' =< |<< ||
Lvjvi Rb Ave`b Kiv nqQ| cevmx evsjv`kx`i
<||* < - < < || <<|< <||| =<
|| <|< <||* -| ||< <<|=
-- < -:- =< : |<< -:- ||<
<||- <|<< |- | << =< | -
-'|< << <| << |#* - << - -'|
- | <|< |# <||< <||* |-< <<
<<< <<| <|| <||-|-< -|<|$| <||*
mev cuQ `Iqvi j AMYx evsK wjwgUW GKwU
| =?= -| ||< |=| << <<
<|<< -->| || |# <||* |||<
<|< <|<| | <|< |< <||*< <
|<|< <<| | < |<|||< =?= <
c`vbi KviY wecyj msLK cevmx evsjv`kx AMYx evsK
||< |< <||* < << = <|<| <|-
<||< | <|< <|||||</<||<-<
|<| <| -|< -|< |< +<< <|
cwiPvjbv KiQ| 2012 mvj wewfb `k nZ A evsKi
| <||*< | |<
P) MvivwU eemv
2012 mvj MvivwU eemvq evsK 515.01 KvwU
UvKvi MvivwU c`vb Ki, hvi cwigvY 2011 mvj wQj
442.05 KvwU UvKv| Dchy RvgvbZi wecixZ
MvnK`i c evsK KZK wewfb miKvwi,
||| ||/|, <||< <|||<
AbyK~j MvivwU c`vb Kiv nq|
Q) Znwej eevcbv Ges URvix Kvhg
<-| <|<< <|< |< | |# |#*
Ges AvRvwZK gvbi mv_ mvgm iL A
<|<< ||< <|<=< (:) || |<, (-) <
=?= < () <||| |< <| #<#| -=
wZbwU Ask cybMVb Kiv nqQ| gvwb gvKU CRR I
SLR msiY Ges my`wfwK wmwKDwiwUR q weqi
|< < =?= <-|< -| =
|<= << <|< #<#| |< < #<#|
wewbqvM Ki _vK| URvwi wWwfkbi mvweK Kvhg
:) ||< |, -) ||< | | < )
||< <|< | =< |< ||- - <|<
| |<| <|<=, | | <
< ||< =< <|< | <
wiKbwmwjqkbi KvR Ki _vK|
evsKi AMMwZi URvwi wWwfkbi iZ
Acwimxg| cavb `ywU mswewae Rgv CRR I SLR
msiYi KvR URvwi wWwfkb `Zvi mv_ Ki
<|< - < -| <<||< < <
<|| ||< || |- << <|<< |<
=<| <$ || |< < < =?= -
| - <|<< ||< || |t <|<
|| |< < < =?= |< < |<|
cvjb KiQ|
| |<|<| ||< ||< -:: < -:-
mvji Avq c`kb Kiv nj:
With efficient and prudent handling of Treasury, a
functioning and effective Asset Liability Committee
regulates and articulates the Bank's total need,
exposures, rates and strategy for Asset Liability
Management. An effective ALM process has
enabled the Bank to efficiently manage and project
its asset and liability flow, resulting in a smooth
flow of all funding requirement of the bank while
maximizing all profit opportunities. The treasury
and its supporting offices have kept up their best
effort throughout the year and are determined to
keep it up for better management of Bank's assets
and liabilities.
h) Investment
The investment portfolio of the Bank at the end of
the year 2012 stood at Tk. 9,241.98 crore as
against Tk. 8,533.13 crore in the previous year,
registering a growth of 8.30 percent. The Bank has
always given emphasis on high yielding
investments and maintains Statutory Liquidity
Requirement (SLR) as fixed by Bangladesh Bank
vide BRPD circular no. 11 dated 25 August 2005
and circular no. 12 dated 25 August 2005. The
portfolio of investment of the Bank as on 31
December 2012 is shown below:
=<| <|<<< - < -| <<|| <|| <|<< |
-|<< ||--|, <<-|<, -< -|< |<|< =< - <
`vq eevcbvi KgKkj wbaviY Ki| Z`vbyhvqx URvwi
|| -| < |<|< |< - < -| <<||<
<|| << <|< = || =<| <|<<< - < -|
<<|| +|< |-|< - < -| <|-< <<|<<
|<|< |< -|< <|- ||+ << <| ||
<< <|< ||< =< =< -<|| | -<
| |< |< <|<< - < -| <<||
-|< |< |<|<||< <<| < -
R) wewbqvM
2012 mvj evsKi gvU wewbqvMi cwigvY wQj
9,241.98 KvwU UvKv| c~eeZx eQi Gi cwigvY wQj
8,533.13 KvwU UvKv| G cewi nvi 8.30
kZvsk| DP my` c`vbKvix wewbqvMi cwZ eiveiB evsK
< |- <||- <|<< |<|<|| |<|<
::, ||< -c | -c < :-, ||< -c |
-c <|| <|< |<|<<+ |< (|< |<#||
<|<) <| << <| -:- |< : |< <|<<
|<|| |<|| | |<
i) Loans and Advances
The loans and advances of the Bank grew
significantly in 2012. The total loans and advances
as on 31 December 2012 was Tk. 21,266.30 crore
as against Tk. 19,408.56 crore at the end of
previous year, showing an increase of 9.57
percent.
The advance portfolio of the Bank is well
diversified and covers funding to a wide spectrum
of business and industries including agro-based
and agro-processing, ship breaking, steel &
engineering, paper & paper products, chemicals,
construction, real estate and loans under
consumers credit schemes, various trading
businesses, service-holders loan and women
entrepreneurs of the country.
S) FY I AwMg
2012 mvj FY I AwMgi cwigvY DjLhvM nvi ew
cqQ| AvjvP mvji kl FY I AwMgi gvU cwigvY
wQj 21,266.30 KvwU UvKv| c~eeZx eQi Gi cwigvY
wQj 19,408.56 KvwU UvKv| G cewi nvi 9.57
kZvsk|
evsKi FYi AvIZvq iqQ wewfb kYxi FY Ges Zv
wewfb LvZ mvwjZ| eemv I wki hme DcLvZ Zv
+|| - | - t =|| <# =< =||
| |r, | <|<, | =< #|=|||<, |< <
|< ||, <|<|, ||, |<|, <||<
wWU xg, wewfb eemvwqK Kvhg, bvix D`vv Ges
|<|<||<
Sl. No. Country Name BDT
1 Saudi Arab 4,048.54
2 UAE 1,971.03
3 Malaysia 1,666.48
4 Singapore 1,011.93
5 Kuwait 901.14
6 USA 667.65
7 Bahrain 192.24
8 Oman 171.61
9 Qatar 63.77
10 Italy 26.08
11 Others 960.53
Total 11,681.00
Taka in Crore Country-wise Remittance in 2012 Crore Taka Country-wise Remittance in 2012
Saudi Arab
4048.54
Others 960.53
UAE 1971.03
Malaysia 1666.48
Singapore 1011.93
Kuwait 901.14
USA 667.65
Bahrain 192.24
Oman 171.61
Qatar 63.77
Italy 26.08
84
The plan contains necessary strategies to
overcome the challenges in terms of turning the
country into a medium income economy. The
major goals of this vision are: to accelerate the
growth rate up to 10 percent by 2021, to raise per
capita income up to US$ 2,000, to reduce the
number of population living under poverty line to
13.50 percent, to reduce the unemployment rate
into 15 percent, to increase annual per head
electricity consumption to 600 kilowatt hour and to
strengthen IT sector for building a Digital
Bangladesh.
Emergence of Agrani Bank limited
Agrani Bank Limited started its journey as a Public
Limited Company on 17 May 2007 and took over
the business, assets, liabilities, rights and
obligations of the former Agrani Bank, which
emerged as a Nationalized Commercial Bank in
1972, pursuant to the Bangladesh Banks
Nationalization Order 1972 (President's Order No.
26 of 1972), on a going concern basis through a
Vendor's Agreement. The Agreement was signed
between the Ministry of Finance, Government of
the People's Republic of Bangladesh on behalf of
ga Avqi `k icvii Pvj gvKvejv I Gi Rb
cqvRbxq Kkjmg~n iqQ G cwiKbvq| Gi cavb
jjv nQ: 2021 mvj bvMv` cew nvi 10 kZvsk
DbxZ Kiv, gv_vwcQy Avq 2,000 gvwKb Wjvi DbxZ Kiv,
`vwi` mxgvi wbP emevmKvix RbMYi msLv 13.50
kZvsk bvwgq Avbv, eKviZ nvi 15 kZvsk bvwgq
Avbv, evwlK gv_vwcQy we`yr eenvi 600 wKjvIqvU NUvq
DbxZ Kiv Ges wWwRUvj evsjv`k MVbi Rb Z_ chyw
eevK kwkvjx Kiv|
AMYx evsK wjwgUWi AvZcKvk
17 g 2007 ZvwiL AMYx evsK GKwU cvewjK wjwgUW
<||| |-< |<| << '| <|< ||'
| '| <|<'-=< <<|, -, -|, |<<|< <
KZZ AwaMnY Ki| 1972 mvj evsjv`k evsK mg~n
RvZxqKiY Av`k ej (cwmWUi AWvi bs 26, 1972
|) | <|< || - |<-< <| -
:c < -- | =<| < |< |< <|
MYcRvZx evsjv`k miKvii A_ gYvjq wQj AMYx
Asset Portfolio
The year-end asset portfolio scenarios of the bank in
2011 and 2012 are appended below:
Business Performance
a) Deposits
At the end of December 2012, the deposit of the bank
stood at Tk. 29,242.92 crore compared to Tk. 25,220.84
crore at the end of previous year leading to a
year-on-year growth in deposit of 15.95 percent. Given
the adverse economic scenario of the country during the
year under review, this growth rate is a remarkable
achievement.
In the prevailing situation, mobiliziation of deposits
became highly competitive and as a result, the average
cost of fund for the banks in the private sector increased
compared to that of the previous year. The bank,
therefore, decided to mobilize low cost fund. The deposit
mix of the bank as on 31 December 2012 was as
follows:
the former Agrani Bank and the Board of Directors
of the Bank on behalf of Agrani Bank Limited on 15
November 2007 with retrospective effect from 01
July 2007.
All shares of the bank are held by the Government
of the People's Republic of