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ANNUAL REPORT 2015

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ANNUAL REPORT 2015

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Glossary of
Acronyms
ABL Agrani Bank Limited CAMLCO Chief Anti-Money Laundering Compliance Officer
ABJL Agrani Bidesh Jawar Loan CAR Capital Adequacy Ratio
ABS Agrani Bank Sanchaya Scheme CBS Core Banking Software
AD Authorized Dealer CCR Credit Concentration Risk
ADBS Agrani Double Benefit Scheme CCU Central Compliance Unit
ADO Asian Development Outlook CDBL Central Depository Bangladesh Limited
ADP Annual Development Program CDR Credit Deposit Ratio
AEIL Agrani Equity & Investment Limited CFO Chief Financial Officer
AFS Available for Sale CFP Contingency Funding Plans
AFSL Australian Financial Services Lisence CFT Combating Finance of Terrorism
AGEX Agrani Exchange House Private Ltd., Singapore CIB Credit Information Bureau
ALCOM Asset-Liability Management Committee CIE Cottage Industry/ Enterprise
ALM Asset-Liability Management CIF Cost Insurance & Freight
ALOW Agrani Loan for Overseas Worker CMU Capital Management Unit
AML Anti-Money Laundering CP Credit Policy
AMLC Anti-Money Laundering Committee CP Core Principles
AOEL Agrani Overseas Education Loan CPF Contributory Provident Fund
APS Agrani Bank Pension Shanchaya Scheme CPI Consumer Price Index
ASIC Australian Securities & Investment Commission CPTU Central Procurement Technical Unit
ATA Anti-Terrorism Act CRAB Credit Rating Agency of Bangladesh Limited
ATM Automated Teller Machine CRAR Capital to Risk Weighted Assets Ratio
BACH Bangladesh Automated Clearing House CRECOM Credit Committee
BACPS Bangladesh Automated Cheque Processing System CRG Credit Risk Grading
BAMLCO Branch Anti-Money Laundering Compliance Officer CRISL Credit Rating Information Services Limited
BAS Bangladesh Accounting Standard CRM Credit Risk Management
BB Bangladesh Bank CRMC Credit Risk Management Committee
BBS Bangladesh Bureau of Statistics CRMD Credit Risk Management Department
BCA Bank Company Act, 1991 CRMG Core Risk Management Guidelines
BCBS BASEL Committee on Banking Supervision CRMO Chief Risk Management Officer
BDT Bangladesh Taka CRO Chief Risk Officer
BEFTN Bangladesh Electronic Fund Transfer Network CRR Cash Reserve Requirement
BFRS Bangladesh Financial Reporting Standard CSP Customer Service Provider
BIA Basic Indicator Approach CSR Corporate Social Responsibility
BIS Bank for International Settlements CTR Cash Transaction Report
B/L Bad/Loss DCFCL Departmental Control Function Check List
BMRE Balancing, Modernization, Rehabilitation & Expansion DFIM Department of Financial Institutions and Markets
BOD Board of Directors DMS Debt Management Strategy
BOEE Balance of Exchange Equalization A/C DP Depository Participants
BRPD Banking Regulation and Policy Department DRS Disaster Recovery Site
BSA Bangladesh Standards on Auditing DSE Dhaka Stock Exchange
BSEC Bangladesh Securities & Exchange Commission DTL Demand and Time Liabilities
BSP Bangladesh Sanchaya Patra EAD Exposure at Default

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ANNUAL REPORT 2015

EAS Early Alert System IMF International Monetary Fund


ECAI External Credit Assessment Institution IPO Initial Public Offering
EDF Export Development Fund IRB Internal Rating Based
EEF Equity Entrepreneurship Fund IRR Interest Rate Risk
EFT Electronic Fund Transfer IRRBB Interest Rate Risk in the Banking Book
e-GP Electronic Government Procurement ISS Integrated Supervision System
EMV Euro Pay, Master Card and Visa IT Information Technology
EnvRR Environmental Risk Rating KPI Key Performance Indicators
EPS Earnings Per Share KYC Know Your Customer
ERM Environmental Risk Management LAN Local Area Network
ERQ Exporter’s Retention Quota LCR Liquidity Coverage Ratio
ETPs Effluent Treatment Plants LDCL Loan Document Check List
EVA Economic Value Added LGD Loss Given Default
FBP Foreign Bills Purchased LIBOR London Inter-Bank Offering Rates
FCA Fellow of Chartared Accountant LIC Low Income Country
FCMA Fellow of Cost Management Accountant LIM Loan Against Imported Merchandise
FDI Foreign Direct Investment LRM Liquidity Risk Management
FIMA Financial Institute Management Academy LTR Loan Against Trust Receipt
FSV Forced Sale Value MANCOM Management Committee
FX Foreign Exchange MCO Maximum Cumulative Outflow
FY Financial Year (July-June) MCR Minimum Capital Requirement
GBC Global Business Challenge MDA Modified Duration of Assets
GDP Gross Domestic Product MDG Millennium Development Goal
GFSR Global Financial Stability Report MDL Modified Duration of Liabilities
GOB Government of Bangladesh MDS Monthly Deposit Scheme
GPF General Provident Fund ME Medium Enterprise
GR General Reserve MICR Magnetic Ink Character Recognition
GSE Government Sponsored Enterprise MIE Micro Industry/Enterprise
GSE Government Supported Entity MIS Management Information System
HFT Held for Trading MIS Monthly Income Scheme
HTM Held to Maturity ML Money Laundering
IAS International Accounting Standards MLPA Money Laundering Prevention Act
IBP Inland Bills Purchased MOU Memorandum of Understanding
IC Industrial Credit MTMF Medium Term Macro Economic Framework
ICAAP Internal Capital Adequacy Assessment Process MYR Malaysian Ringgit
ICAB Institute of Chartered Accountants of Bangladesh NAV Net Asset Value
ICC Internal Control & Compliance NBFI Non-Banking Financial Institution
ICMAB Institute of Cost & Management Accountants of Bangladesh NCB Nationalized Commercial Bank
ICT Information & Communication Technology NFCD Non-Resident Foreign Currency Deposit
ICT Internal Control Team NII Net Interest Income
ICU Internal Control Unit NPA Non-Performing Assets
IFMS Instant Financial Messaging System NPL Non-Performing Loan
IFRS International Financial Reporting Standards NRIT Non-Resident Investors Taka Account

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NPSB National Payment Switch Bangladesh RU Recovery Unit
NRTA Non-Resident Special Taka Account RW Risk Weighted
NSFR Net Stable Funding Ratio RTG Roof Top Gardening
OBS Off-Balance Sheet RTGS Real Time Gross Settlement
OBU Offshore Banking Unit RWA Risk Weighted Assets
PAD Payment Against Document SA Standardized Approach
PC Packing Credit SAF Super Annuation Fund
PCB Private Commercial Bank SAFA South Asian Federation of Accountants
PD Probability of Default SCB State Owned Commercial Bank
PD Primary Dealer SE Small Enterprise
PDBL Primary Dealers Bangladesh Limited SEC Securities and Exchange Commission
PE Price Earnings SEDP Small Enterprise Development Program
PEP Politically Exposed Persons SEQAEP Secondary Edn. Quality Access Enhancement Project
PLST Political, Legal, Social, Technological Analysis SGD Singapore Dollar
POS Point of Sales SLP Structural Liquidity Profile
PPP Public Private Partnership SLR Statutory Liquidity Ratio
PRL Post Retirement Leave SREP Supervisory Review Evaluation Process
PRSP Poverty Reduction Strategy Paper SRP Supervisory Review Process
PSP Protirakkha Sanchaya Patra SMA Special Mention Account
PUC Paid Up Capital SME Small and Medium Enterprise
PV Present Value SMM Standarized Measurment Method
QOR Quarterly Operation Report SMS Short Message Service
RAF Risk Appetite Framework SNTD Special Notice Time Deposit
RBCA Risk Based Capital Adequacy SOD Secured Overdraft
RBIA Risk Based Internal Audit SOE State Owned Enterprise
R&D Research and Development SOP Standard Operating Procedure
RE Retained Earnings SREP Supervisory Review Evaluation Process
RFCD Resident Foreign Currency Deposit SRP Supervisory Review Process
REPO Re-Purchase Agreement STD Short Term Deposit
RIT Rationalized Input Template STR Suspicious Transaction Report
RJSC Registrar of Joint Stock Companies and Firms SWAP Sell With a Purchase
RMC Risk Management Committee SWIFT Society for Worldwide Inter-bank Financial Telecommunication
RMD Risk Management Department SWOT Strengths, Weaknesses, Opportunities, Threats Analysis
RMG Ready Made Garments TOR Terms of Reference
RMU Risk Management Unit TP Transaction Profile
ROA Return on Assets UC Unclassified
ROE Return on Equity UCP Uniform Customs and Practice
ROD Right Share Offer Document VAR Value at Risk
ROL Return on Investment WAN Wide Area Network
RPGCL Rupantarita Prakkritik Gas Company Limited WBG Wholesale Borrowing Guidelines
RSA Rate Sensitive Assets WBR Web Based Remittance
RSL Rate Sensitive Liabilities WEO World Economic Outlook
RTGS Real Time Gross Settlement WTO World Trade Organization

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ANNUAL REPORT 2015

Corporate Profile
Agrani Bank Limited
As on 31.12. 2015

Agrani Bank Limited (ABL) was incorporated as a State Owned Commercial Bank on 17 May 2007 under the Companies
Act 1994. Agrani Bank emerged as a Nationalized Commercial Bank following the Bangladesh Banks (Nationalization)
Order 1972 vide President’s Order No. 26 of 1972. On a going concern basis ABL took over the business, assets, liabilities,
rights and obligations of Agrani Bank through a vendor’s agreement signed on 15 November 2007 between the Ministry
of Finance of the People’s Republic of Bangladesh and the Board of Directors of ABL with retrospective effect from 1 July
2007.
Legal Status Public Limited Company (business conducted as per the Bank Companies Act 1991)
Shareholding Pattern 100 percent share owned by Government of the People’s Republic of Bangladsh
Chairman Dr. Zaid Bakht
Managing Director & CEO Dr. Syed Abdul Hamid, FCA
Company Secretary Khandaker Sajedul Haque
Registered Office 9/D Dilkusha, Dhaka 1000, Bangladesh (1 crore =10 million)
Authorised Capital Tk. 2,500.00 Crore Total Deposits Tk. 43,997.55 crore
Paid up Capital Tk. 2,072.29 Crore Loans & Advances Tk. 24,480.18 crore
Operating Profit Tk. 877.47 Crore Total Equity Tk. 4,467.59 Crore
Tax Identification No. 0022001223 Vat Registration No. 19011031730
Employee 13,396 (officer 10,737, staff 2,659) Branch 930
Circle Office 11 Zonal Office 62
Corporate Branch 27 Authorised Dealer Branch 40
Foreign Correspondent 322 Foreign Remittance/ Exchange House 62
Alpha Credit Rating Limited rated on December 7, 2015 Long Term Short Term
Entity Rating 2014 (as Govt. Guaranteed Bank) AAA AR-1

Credit Rating Surveillance Rating 2014 (Stand Alone Basis) A AR-2

Surveillance Rating 2013 (Stand Alone Basis) A- ST-2

Outlook Stable

Subsidiary Companies Agrani Equity & Investment Limited


in Bangladesh Agrani SME Financing Company Limited

Agrani Exchange House Private Limited, Singapore (4 branches)

Agrani Remittance House Sdn. Bhd., Malaysia (5 branches)


Subsidiary Companies
in Overseas Agrani Exchange Company (Australia) Pty. Limited

Agrani Remittance House Canada Inc.

Phone +88-02-9566160-9, +88-02-9566153-4, +88-02-9566074-5

Fax +88-02-9562346, +88-02-9563662, +88-02-9563658

SWIFT Code AGBKBDDH Website www.agranibank.org

E-mail agrani@agranibank.org, info@agranibank.org MD’s E-mail mdagrani@agranibank.org

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PANCHAGARH

6
4
NILPHAMARI
THAKURGAON 2
3 LALMONIRHAT KURIGRAM ABL Branch Network
12 9
DINAJPUR RANGPUR

13

11
GAIBANDHA
JOYPURHAT
SHERPUR
9
NAOGAON 8 NETRAKONA SUNAMGANJ
SYLHET
JAMALPUR
12 BOGRA 11 5
CHAPAI 14 35
NAWABGANJ 30 18
13 MYMENSHING
RAJSHAHI
MOULVIBAZAR
19 NATORE SIRAJGANJ KISHOREGANJ 5 13
TANGAIL
14 20 HABIGANJ
24 12
18
PABNA
GAZIPUR
26 11
NARSHINGDI
KUSHTIA DHAKA 15
12
MEHERPUR 21 MANIKGANJ 89 BRAHMANBARIA
5 RAJBARI
12
N. GANJ
10 5
CHUADANGA JHENAIDAH
FARIDPUR 14 COMILLA
10
7 16 MUHSHIGANJ 32
MAGURA 20
SARIATPUR
6 CHANDPUR KHAGRACHARI
JESSORE NARAIL
MADARIPUR 5 2
18 10 GOPALGANJ
FENI
13 LAKSHMIPUR 14
18 15 NOAKHALI
BARISAL
SATKHIRA PIROJPUR 13
10 7 67
KHULNA JHALOKATI 4
CHITTAGONG
29 BAGERHAT 5 RANGAMATI
14 BHOLA
PATUAKHALI
10
12
7
BARGUNA

2
BANDARBAN

4
COX’SBAZAR

District-wise Number of 930 Branches

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Vision
To become the best leading
state owned commercial bank of
Bangladesh opera ng at
interna onal level of efficiency,
quality, sound management, excellent
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 prac ces to
improve our business policies
and procedures to the benefit
of our customers and
employees

Va l u e s Motto
We value in integrity, transparency, To adopt and adapt modern
accountability, dignity, diversity, approaches to stand supreme
growth and professionalism to in the banking arena of
provide high level of service to all Bangladesh with global
our customers and presence.
stakeholders inside and
outside the country.
Strategic Objectives
• Winning at least 6.50 percent share of deposits and 5.50 percent
share of loans and advances of Bangladeshi market.

• Gaining competitive advantages by lowering overall cost compared


to that of competitors.

• Overtaking competitors by providing quality customer service.

• Achieving technological leadership among the peer group.

• Strengthening the Bank’s brand recognition.

• Contributing towards the economic well-being of the country by


focusing particularly on remittance, SME and agricultural sectors.

• Strengthening research capability for innovative products.

Ethical Standards
• Be Trustworthy: We believe in mutual trust and treat our
customers in a way so that they can trust us.

• 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.

• 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.

• 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 Bank’s website, journals and reports.

• Be involved with the Community: We remain involved in


community-related issues and activities, thereby demonstrating
that our business is socially responsible.

• Be Respectful: We treat all stakeholders with utmost respect and


courtesy regardless of differences, positions, titles, ages, or other
types of distinctions.

• 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 to keep environment safe. We are pro-active and
foresighted for green office and green economy.

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ANNUAL REPORT 2015

Letter of
Transmittal
To

All shareholders

Registrar of Joint Stock Companies & Firms

Securities and Exchange Commission

Bangladesh Bank, Dhaka.

Sub: Annual Report for the year ended on 31st December 2015.

Dear Sir (s)

We are pleased to enclose herewith copy of the Annual Report 2015 which contains the Audited Financial Statements of
Agrani Bank Limited and its six Subsidiaries i.e. Agrani Equity & Investment Limited, Agrani SME Financing Company Limited,
Agrani Exchange House Private Limited, Singapore, Agrani Remittance House Sdn. Bhd., Malaysia, Agrani Exchange Company
(Australia) Pty. Limited and Agrani Remittance House Canada Inc. for your kind information and record.

Yours sincerely

Dr. Syed Abdul Hamid, FCA


Managing Director & CEO

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Notice of the Ninth

Annual General Meeting


Notice is hereby given to all Shareholders of Agrani Bank Limited that the 9th Annual General Meeting of the Company will
be held on 20 th June 2016 at 1.30 pm at the Board Room of Agrani Bank Limited, Motijheel, Dhaka, to transact the following
business and adopt necessary resolutions:

Agenda

1. To inform the minutes of the 8th Annual General Meeting held on1st June 2015.

2. To receive, consider and adopt the Audited Financial Statements of the Bank for the year ended on 31st
December 2015 together with the Auditors’ Report and the Report of the Directors’ thereon.

3. To elect /re-elect Directors.

4. To appoint Auditors for 2016 and to fix their remuneration.

5. To transact any other related business with the permission of the Chair.

Dated : June 5, 2016 By Order of the Board of Directors

Khandaker Sajedul Haque


Company Secretary

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ANNUAL REPORT 2015

Key Indicators of Agrani from 1972 to 2015


BDT in Crore

Loans & Classified Foreign Operating No.of Authorised Paid up Total


Year Deposits Import Export Net Profit Manpower Equity
Advances Loans Remittance Profit Branch Capital Capital Assets
1972 96 77 1 1 2267 249 5 1 1 137
1973 125 101 3 3 2363 283 5 3 4 213
1974 137 121 77 37 3 3 3517 289 5 3 5 270
1975 141 126 60 39 4 4 3561 305 5 3 6 310
1976 182 152 76 90 5 5 3770 351 5 3 6 354
1977 248 206 190 100 5 5 5074 510 5 3 6 480
1978 318 251 208 102 9 5 5 6672 602 5 3 7 560
1979 380 295 279 131 5 5 6981 690 5 3 7 769
1980 470 361 282 133 5 5 7901 775 5 3 7 853
1981 571 394 284 141 11 7 7 7460 775 5 3 7 950
1982 707 464 315 231 31 9 9 9334 776 5 3 7 1040
1983 1027 662 502 289 86 12 12 10062 777 5 3 7 1471
1984 1441 1031 863 470 182 17 17 10523 789 15 3.5 7 2309
1985 1742 1286 891 538 316 32 32 11128 808 15 3.5 10 2576
1986 1967 1466 901 509 430 28 28 11196 825 15 3.5 10 2642
1987 2381 1650 1162 593 651 18 18 11237 851 15 3.5 11 3200
1988 2625 1916 1106 735 757 13 13 12605 862 15 3.5 12 3525
1989 3060 2248 660 1746 822 780 1 1 13213 870 15 3.5 12 4644
1990 3187 2193 736 1285 1135 906 2 2 13152 881 800 106 116 4572
1991 3667 2458 867 1277 1218 1183 0.02 0.02 13154 889 800 106 116 5362
1992 4176 2650 930 1803 1724 1611 0.04 0.04 13143 891 800 106 116 5765
1993 4512 3060 1230 2163 2129 1846 0.64 0.64 13915 895 800 248 278 6420
1994 5250 3767 1292 3234 2853 2115 1 1 13981 899 800 248 278 7911
1995 6344 4650 1620 4058 3590 2026 1 1 13789 903 800 248 278 9723
1996 6713 4861 2023 2948 3510 2160 1 1 13952 903 800 248 279 9470
1997 7301 5101 2433 2832 3520 2517 1 1 13486 903 800 248 279 10422
1998 8278 5378 2846 3053 3521 2675 1 1 13530 903 800 248 280 11004
1999 9079 5837 3005 2597 3472 2795 1 1 13341 903 800 248 316 11939
2000 10053 7701 2937 3271 4202 3219 59 2 13320 903 800 248 325 12326
2001 10671 8002 3000 2634 3743 3371 24 0.20 13058 901 800 248 333 13107
2002 11547 8896 3144 3122 3458 3172 30 1.50 12901 891 800 248 340 14445
2003 11743 8931 2641 2897 3575 2743 26 0.14 12514 872 800 248 340 14144
2004 12538 9592 2692 3591 4197 3684 -75 -2172 12208 870 800 248 -1890 15138
2005 13084 9940 2814 5119 4171 3457 214 163 11938 864 800 248 -1726 15553
2006 12892 10587 2782 11592 5171 3930 358 194 11793 866 800 248 -1532 15408
2007 13592 11849 3179 11343 4892 4281 526 316 11345 866 800 248 334 18628
2008 14681 11336 2549 10952 4954 5269 633 265 10988 867 800 248 642 18733
2009 16628 12224 2374 7753 4461 5587 644 111 11443 867 800 497 1144 21179
2010 20633 16326 2102 16792 6443 7097 1086 352 11900 867 800 547 1572 26485
2011 25221 19409 2149 26877 9310 8682 1474 250 12085 876 1000 901 2594 34882
2012 29243 21266 5380 16963 8838 11681 1007 -1862 13890 889 2500 991 717 37872
2013 34868 20297 3580 15947 7845 12657 1064 905 14005 899 2500 2072 3564 44416
2014 38392 23509 3966 15741 8345 12980 1074 199 13414 921 2500 2072 3957 49487
2015 43998 24480 4640 10917 7543 13204 878 65 13396 930 2500 2072 4468 56535

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Chairmen of the Board
From 1972 to 2015

Agrani Bank : As Nationalized Commercial Bank

SL. Name From To

01 M. Fazlur Rahman 02-01-1972 31-03-1981

02 Abdur Rahman Biswas 01-04-1981 04-05-1982

03 Prof. M. Safiullah 05-05-1982 04-05-1985

04 M. Matiur Rahman 05-05-1985 16-04-1986

05 Mir Ataul Haque Khandker 17-04-1986 21-01-1987

06 Imamuddin Ahmad Chaudhury 22-01-1987 14-12-1990

07 Mohd. Faizullah 15-12-1990 05-10-1991

08 L.K. Siddiqi 06-10-1991 22-09-1993

09 M. Hafizuddin Khan(Acting) 23-09-1993 03-01-1994

10 Dr. Fashiuddin Mahtab 04-01-1994 31-01-1996

11 Atauddin Khan 01-02-1996 18-07-1996

12 H. T. Imam 11-08-1996 10-08-1998

13 Md. Matiur Rahman 13-08-1998 21-06-2000

14 Abdul Hannan 22-06-2000 25-03-2001

15 Dr. Sohrabuddin 28-03-2001 12-11-2001

16 M. Ahsanul Haque 14-11-2001 12-11-2003

17 Sayed Mushtak (Acting) 19-11-2003 13-01-2004

18 Md. Fazlur Rahman 14-01-2004 26-11-2006

19 S. M.Jahurul Islam 19-12-2006 02-04-2007

20 Siddiqur Rahman Choudhury 23-04-2007 30-06-2007

Agrani Bank Limited : As State Owned Commercial Bank

01 Siddiqur Rahman Choudhury 01-07-2007 16-09-2009

02 Dr. Khondoker Bazlul Haque 17-09-2009 09-09-2014

03 Arastoo Khan (Acting) 21-09-2014 18-11-2014

04 Dr. Zaid Bakht 19 -11-2014 Continued

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ANNUAL REPORT 2015

Managing Directors
From 1972 to 2015

Agrani Bank : As Nationalized Commercial Bank

SL. Name From To

01 M. Fazlur Rahman 26-03-1972 14-07-1982

02 Lutfar Rahman Sarkar 15-07-1982 31-08-1983

03 Humyun Hamid (Acting) 01-09-1983 13-10-1983

04 Mohammad Hossain 14-10-1983 11-04-1987

05 Humayun Hamid 11-04-1987 04-03-1991

06 Gulam Mohammad (Current Charge) 04-03-1991 09-09-1991

07 Quazi Baharul Islam 09-09-1991 30-07-1992

08 Mustafa Aminur Rashid 30-07-1992 30-09-1995

09 Foyezuddin Ahmed 30-09-1995 04-02-1996

10 A. Q. Siddiqui 04-02-1996 03-08-1996

11 Khondoker Ibrahim Khaled 03-08-1996 18-02-1997

12 Mosharraf Hossain 12-03-1997 28-04-1999

13 A. K. M. Nazmul Haq 31-05-1999 25-07-1999

14 M. Enamul Haq Chowdhury 01-08-1999 06-01-2000

15 M. A. Yousoof 06-01-2000 10-07-2001

16 A. S. M. Imdadul Haque 10-07-2001 05-09-2004

17 A. K. M. Asaduzzaman (Current Charge) 06-09-2004 01-10-2004

18 Syed Abu Naser Bakhtear Ahmed 02-10-2004 30-06-2007

Agrani Bank Limited : As State Owned Commercial Bank

01 Syed Abu Naser Bakhtear Ahmed 01-07-2007 30-09-2007

02 Dr. Syed Abdul Hamid, FCA (Acting) 01-10-2007 14-04-2008

03 Syed Abu Naser Bakhtear Ahmed 15-04-2008 12-04-2010

04 Dr. Syed Abdul Hamid, FCA 13-04-2010 Continued

17
Board of
Directors
2015

Dr. Zaid Bakht


Chairman

Directors

Gokul Chand Das


Arastoo Khan Additional Secretary
Secretary Government of Bangladesh
Government of Bangladesh (Appointed on 28.12.2015)

Engineer Md. Abdus Sabur K M N Manjurul Hoque Lablu


Industrialist Chief Editor & Managing Director
(Retired on 26.12.2015) Global News Agency

Niaz Rahim
Director Advocate Balaram Podder
Rahim Afrooz Group of Companies Law practitioner & Social Worker

18
Board of
Directors
2015

Directors

Prof. Dr. Md. Abdur Rouf Sardar


Director
Bangladesh Medical College & Hospital Shameem Ahsan
(Retired on 26.12.2015) ICT Specialist & Entrepreneur

Md. Altaf Hossain Molla A. B. M. Kamarul Islam


DIG of Bangladesh Police (Rtd,) Joint Secretary (Rtd.)
(Retired on 26.12.2015) (Retired on 26.12.2015)

Dr. Syed Abdul Hamid, FCA


Hasina Newaaz Managing Director & CEO
Entrepreneur Agrani Bank Limited

19
Board of
Directors
2016

Dr. Zaid Bakht


Chairman

Directors

Arastoo Khan
Secretary (Rtd)
Government of Bangladesh
(Retired on 14.01.2016)

Gokul Chand Das


Additional Secretary
Government of Bangladesh

K M N Manjurul Hoque Lablu


Chief Editor & Managing Director
Global News Agency
(Retired on 13.03.2016)

Niaz Rahim
Director
Rahim Afrooz Group of Companies
(Retired on 09.01.2016)

Advocate Balaram Podder


Law practitioner & Social Worker
(Retired on 02.01.2016)

20
Board of
Directors
2016

Directors

Sangita Ahmed
Entrepreneur

Shameem Ahsan
ICT Specialist & Entrepreneur

Hasina Newaaz
Entrepreneur

Prof. Dr. Nitai Chandra Nag


Professor
Chittagong University

M. Ashiqul Hoque Chawdhury


Joint Secretary (Rtd.)

Dr. Syed Abdul Hamid, FCA


Managing Director & CEO
Agrani Bank Limited

21
Committees of the Board
2015

Chairman : Dr. Zaid Bakht


Member : KMN Manjurul Hoque Lablu
Prof. Dr. Md. Abdur Rouf Sardar
darr
Shameem Ahsan
A.B.M. Kamarul Islam
Hasina Newaaz

Chairman : Arastoo Khan


Member : Engineer Md. Abdus Sabur
Advocate Balaram Podder
Md. Altaf Hossain Molla

Chairman : Arastoo Khan


Member : Engineer Md. Abdus Saburr
Prof. Dr. Md. Abdur Rouf Sardar
Shameem Ahsan

Committees of the Board


2016

Chairman : Dr. Zaid Bakht


Member : Sangita Ahmed
Shameem Ahsan
Prof. Dr. Nitai Chandra Nag

Chairman : Gokul Chand Das


Member : Hasina Newaaz
M. Ashiqul Hoque Chawdhury

Chairman : Prof. Dr. Nitai Chandra Nag


Member : Gokul Chand Das
Shameem Ahsan
Hasina Newaaz

22
ANNUAL REPORT 2015

Board of Trustees of ABL Employees’ Provident Fund

Chairman KMN Manjurul Hoque Lablu


Director of the Board

Dr. Syed Abdul Hamid, FCA


Members Managing Director & CEO

Muhammad Awal Khan


Deputy Managing Director

Mizanur Rahman Khan


Deputy Managing Director

Md. Awlad Hossain


Deputy Managing Director

Kazi Sanaul Hoq


Deputy Managing Director

Md. Nazrul Islam Farazi


General Manager and CFO

Md. Moshiur Ali


General Manager (HR)

Member Secretary A.S.M. Waliullah


Deputy General Manager (CAD)

Ho Vasi Chowdhury & Co.


Hoda
H
Auditors Chartered Accountants
Cha
BTMC Bhaban (Level 8)
BTM
7-9 Kawran Bazar, Dhaka 1215
A.Qasem & Co.
A.Q
Chartered Accountants
Cha
Suites 1-3, Level 7, Plot 15, Road 103
Gulshan Avenue, Dhaka 1212

Income Tax M/S L.R. Bhuiyan and Associate


M/
Advisor Bijoy Nagar, Dhaka 1000
6B

Credit Rating Alp Credit Ra–ng Limited


Alpha
Company Shadharan Bima Bhaban 2
Sha
139 Mo–jheel, Dhaka 1000

Legal Consultant Shahjahan Majumder


Sh

Chief Medical Officer Dr. Parimal Kan  Debnath, MBBS

23
Management
Team

MANAGING Dr. Syed Abdul Hamid, FCA


DIRECTOR & CEO

Muhammad Awal Khan (MD to RAKUB on 8.5. 2016)


Mizanur Rahman Khan
DEPUTY Md. Awlad Hossain (PRL on 17.7.2015)
MANAGING Kazi Sanaul Hoq
DIRECTORS ANM Masrurul Huda Siraji (Join on 25.1.2016)
Mohammed Ismail Hossain (Join on 10.5.2016)

A. A. Md. Shajahan (DMD to Sonali Bank on 25.1.2016)


Md. Nazrul Islam Farazi (DMD to BKB on 25.1.2016)
Md. Shahidullah
Mobarak Hossain
Md. Rafiqul Alam
Md. Moshiur Ali
Md. Ali Hossain Prodhania
Tazrina Ferdausi
Kazi Alamgir
Pankaj Roy Chowdhury
GENERAL Md. Yusuf Ali
MANAGERS Md. Kamruzzaman
Borhanuddin Farook Ahmed (PRL 21.1.2016)
Md. Showket Islam
Md. Harmuz Miah
Md. Monowar Hossain, FCMA, CPA, FCS, ACA
Babul Kumar Saha Roy
Sahida Akhtar
S.M. Nurul Ahsan
A.B.M. Khalekuzzaman (PRL on 6.1.2016)
Md. Anisur Rahman

24
Management
Team

Dr. Syed Abdul Hamid, FCA


Managing Director & CEO

Deputy Managing Directors

Muhammad Awal Khan


(MD to RAKUB on 08.05.2016)

Mizanur Rahman Khan

Md. Awlad Hossain


(PRL on 17.07.2015)

Kazi Sanaul Hoq

ANM Masrurul Huda Siraji


(Joined on 25.01.2016)

Mohammed Ismail Hossain


(Joined on 10.05.2016)

25
General Managers

A. A. Md. Shajahan Md. Nazrul Islam Farazi Md. Shahidullah Mobarak Hossain
(DMD to Sonali Bank on 25.1.2016) (DMD to B. Krishi Bank on 25.1.2016)

Md. Rafiqul Alam Md. Moshiur Ali Md. Ali Hossain Prodhania Tazrina Ferdousi

Kazi Alamgir Pankaj Roy Chowdhury Md. Yusuf Ali Md. Kamruzzaman

Borhanuddin Farook Ahmed Md. Showket Islam Md. Harmuz Miah Md. Monowar Hossain
(PRL on 21.01.2016)

Babul Kumar Saha Roy Sahida Akhtar S.M. Nurul Ahsan A.B.M. Khalekuzzaman Md. Anisur Rahman
(PRL on 06.1.2016)

26
ANNUAL REPORT 2015

Deputy General Managers


As on 31-12-2015

01 A. S. M. Waliullah 36 Md. Lutfor Rahman 71 Samir Ranjan Chakrabarty


02 Dr. Md. Emdadul Haque 37 Mahmudul Ameen Masud 72 Begum Shamsun Nahar
03 Md. Mustafa Kamal Bhuiyan 38 Zahiruddin Khan 73 Md. Abdul Aziz Dewan
04 Md. Nazrul Islam 39 S. M. Babul Islam 74 Md. Iqbal Karim
05 Md. Serajul Islam 40 Md. Akhtarul Alam 75 Md. Rezwanul Hoque
06 Md. Nurul Amin 41 Md. Ismail Hossain 76 Md. Abdur Rahman
07 Md. Kamruzzaman 42 Mohammed Shawkat Ali 77 Md. Abdullah Al Muztahed
08 Md. Shafiqur Rahman Sadique 43 Abu Bakar Khan 78 Muhammad Ullah
09 Md. Golam Kabir 44 Md. Abdur Rahim 79 Sadhan Chandra Mondal
10 Md. Abdul Haque 45 Md. Anwarul Islam 80 Md. Mahfuzur Rahaman Miah
11 Shirin Akhter 46 Md. Nazmul Haque 81 Md. Taufiqul Islam
12 Md. Abu Anis Sultan Mamun 47 Md. Abdus Salam Molla 82 M. Mortuz Ali chowdhury
13 Md. Rezaul Karim 48 Md. Jahangir Mondal 83 Ronjit Banik
14 Md. Khorshed Alam 49 Muhammad Golam Mustafa 84 Md. Fazle Khoda
15 Md. Sharif Ullah 50 A. B. M Abdul Mobin 85 Md. Abdullah Al Mamun
16 Rokeya Afroza 51 Zakia Begum 86 Shyamal Chandra Sarker
17 Md. Habibur Rahman 52 Tapash Sarker 87 Md. Golam Kibria
18 Md. Liakat Ali 53 Md. Fazle Halim 88 Md. Kamal Uddin
19 Md. Akram Hossain 54 Md. Lutfar Rahman Sikder 89 Abdul Khaleque Mollah
20 Md. Wali Ullah 55 Ashok Kumar Saha 90 Jahanara Begum
21 Jahar Lal Roy 56 Jasim uddin Ahmed 91 Md. Shamsul Haque
22 Md. Abul Basar Serneabad 57 Md. Monirul Islam 92 Enamul Mowla
23 Tapash Kumar Das Gupta 58 Md. Ruhul Amin 93 Shamim Uddin Ahmed
24 Md. Abul Hashem 59 Ajay Kumer Poddar 94 M. Shamsul Alam
25 Shukanti Bikash Shanyal 60 Rafiq Ahmed 95 Mohammad Tariqul Islam
26 Shekhar Chandra Biswas 61 Md. Mozammel Hossain 96 Md. Shahidul Islam
27 Md. Faruqe Ahmed 62 Ali Ul Abedin Bhuiyan 97 Md. Abdul Alim
28 Md. Hafizur Rahman 63 Ismat Parveen 98 Mirza Md. Shahadat Hossain
29 Md. Nurul Islam 64 Md. Wadud Ali 99 Md. Ferdous Chowdhury
30 Md. Wahiduzzaman 65 Abdur Rahim Talukder 100 Hossain Iman Akand
31 Tuheen Alam 66 Md. Samiul Alam 101 A.K.M. Shameem Reza
32 Md. Monirul Islam 67 Khandaker Sajedul Hoque 102 Md. Azizul Haque
33 Selina Zaman 68 Md. Jalal Uddin 103 Shahan Ara Begum
34 Belayet Hossain 69 Kazi Shafiqul Islam 104 Suranjan Kumar Roy
35 A. M. Abid Hossain 70 Md. Ebayedullah Talukder

27
Five Years’

Performance at a Glance
Taka in crore
Particulars 2015 2014 2013 2012 2011
Balance Sheet
Authorized Capital 2,500 2,500 2,500 2,500 1,000
Paid-up Capital 2,072 2,072 2,072 991 901
Reserve 1,747 1,693 1,659 1,168 1,168
Revaluation Reserve on Investment in Govt. Securities 555 203 58 12 27
Retained Profit (Loss) 93 (12) (225) (1,454) 498
Total Equity 4,468 3,957 3,564 717 2,594
Total Deposits 43,998 38,392 34,868 29,243 25,221
Core Deposits 13,500 11,912 10,722 9,932 9,255
i. Savings Deposit 11,716 10,508 9,524 8,926 8,532
ii. Deposit Pension Scheme 4 7 88 127 133
iii. Agrani Bank Pension Scheme 34 40 45 71 68
iv. Agrani Bank Bishesh Shanchay Scheme 1,746 1,357 1,065 808 522
Total Loans and Advances 24,480 23,509 20,297 21,266 19,409
Interest Suspense and Penal Interest 974 766 688 735 602
Provision for Loans and Advances 2,721 2,275 1,923 3,466 1,235
Net Loans and Advances 20,784 20,467 17,686 17,065 17,572
Investments (net) 20,010 14,632 14,566 8,921 8,376
Fixed Assets 1,595 1,545 1,525 1,138 1,123
Total Assets 56,535 49,487 44,416 37,872 34,882
Net Current Assets 3,059 3,315 6,781 4,823 5,859
Operating Results
Total Income 4,286 4,170 4,113 3,700 3,301
Total Expenditure 3,408 3,096 3,049 2,693 1,827
Operating Profit before Amortization, Provision & Tax 878 1,074 1,064 1,007 1,474
Amortization of Valuation Adjustment 133 133 133 133 133
Provision during the year 805 770 242 2,738 607
Provision for Tax (125) (28) (216) (2) 484
Net Profit (loss) after Amortization, Provision & Tax 65 199 905 (1,862) 250
Financial Ratios
Earnings per Share 3.15 9.58 91.28 (187.84) 25.22
Cost of Fund in percentage 9.01 9.58 10.41 9.97 7.69
Return on Equity in percentage 1.46 5.02 25.39 (259.94) 9.64
Return on Assets in percentage 0.12 0.40 2.04 (4.92) 0.72
Net Interest Margin in percentage 3.34 3.90 3.43 1.61 3.83
Average Yield on Loan in percent (Performing Loan) 11.24 12.17 14.19 13.86 11.99
Loans as percentage of Deposit (AD Ratio) 55.64 61.23 58.21 72.72 76.95
Total Classified Loans to Total Loans in percentage 18.96 16.96 17.93 25.30 11.07
Net Classified Loans to Net Loans in percentage
6.84 6.20 6.81 8.40 3.44
(including staff loan)

28
ANNUAL REPORT 2015

Five Years’

Performance at a Glance
Taka in crore
Particulars 2015 2014 2013 2012 2011
Capital Measures (as per Basel II)
Total Risk Weighted Assets 26,469 25,326 21,370 21,455 21,411
Core Capital (Tier-I) 1,747 1,552 1,212 (1,320) 1,688
Supplementary Capital (Tier-II) 777 1,092 933 - 665
Total Capital 2,524 2,644 2,145 (1,320) 2,353
Tier-I Capital Ratio 6.60% 6.13% 6.00% - 8%
Tier-II Capital Ratio 2.94% 4.31% 4.00% - 6% 3%
Total Capital Ratio 9.54% 10.44% 10.00% 11%

Credit Quality
Non-Performing Loans (NPLs) 4,640 3,966 3,580 5,380 2,149
Provision for Unclassified Loans 459 325 - 254 293
Provision for Classified Loans 2,245 1,930 - 3,212 942

Share Information
No. of Shares Outstanding 20,72,29,404 20,72,29,404 20,72,29,404 9,91,29,404 9,01,17,640
No. of Shareholders 12 11 12 12 12
Dividend - Bonus Share - - - - 10%
Net Asset Value per Share (Taka) 216 191 172 72 288

Key Operational Datas


Forex Business 31,664 37,066 36,449 37,482 44,869
i. Import 10,917 15,741 15,947 16,963 26,877
ii. Export 7,543 8,345 7,845 8,838 9,310
iii. Remittance 13,204 12,980 12,657 11,681 8,682
Guarantee Business 559 1055 794 515 442
Branches 930 921 899 889 876
Employees 13,396 13,414 14,005 13,890 12,085
NOSTRO A/C with Foreign Banks 39 38 43 43 43
Exchange Houses (Remittance) 62 61 56 52 52
Foreign Correspondents 322 328 396 429 419
Number of Subsidiary Companies 6 6 6 6 4

29
Participation and Contribution to the Nation
A count of the year 2015

Deposit
Deposit is Tk. 43,998 crore which is 5.90% of total
deposits of all banks in Bangladesh.

Loans & Advances


Loans & advances is Tk. 24,480 crore which is
3.97% of total loans & advances of all banks.

Import
Import is Tk. 10,917 crore which is 3.55% of total
import of all banks in Bangladesh.

Export
Export is Tk. 7,543 which is 2.97% of total export
of all banks in Bangladesh .

Remittance
a) Foreign remi…ance is Tk. 13,204 crore which is
11% of total na†onal remi…ance figure.
b) In the year 2012, 2013, 2014 and 2015 ABL
achieved first posi†on in collec†ng foreign
SME
remi…ance among the SCBs.
In SME sector ABL disbursed Tk. 2,191 crore in
the year 2015.

CSR
During the year 2015 ABL donated Tk. 3.16 crore
to 31,674 beneficiaries under its CSR program.

ABL’s Contribution to National Exchequer


a) Tk. 128.50 crore as Advance Tax.
b) Tk. 33.69 crore as VAT.
c) Tk. 240.72 crore as Tax Deducted at Source
from the customers.
d) Tk.42.23 crore as Excise Duty. Automation
a) ABL is one of the pioneers in the country to
use computer technology (IBM Main Frame)
since 1968.
b) At present 928 brances are using real †me
Recruitment online Core Banking So•ware T24.
As part of government policy of
employment genera†on, ABL recruited
795 officers (Cash) in 2015.

Branch Network
ABL is the second largest bank of the country in
respect of branch network which is 930 in 2015

Award by Agrani
Seven eminent writers are awarded `Agrani Bank
Children Literary Award’ every year, a pres†gious
literary award of the country introduced by
Agrani Bank since 1981.

30
Deposits
Tk. 43,998 crore
To
ta

0
56 l As

93
ch al
an Tot
,53 set

es
5 s

Br
Total Employees
Spotlight Equity
Tk. 4,468 crore
13,396
2015
Op
e
Tk rati
. 1 it ign

. 8 ng
04 nce
e
or

78 Pr
Tk Rem ore

cr
3,2 ta

cro ofi
F

re t
Foreign
Correspondents 322

Spotlight of 2015
Graphical

Presentation of Performance

Net Asset Value Per Share

288 Taka

216
191
172
Operating Profit

Crore Taka
72 1,474

1,064 1,074
1,007
878
2011 2012 2013 2014 2015

Net Loans and Advances 2011 2012 2013 2014 2015

Crore Taka

20,467 20,784

17,065 17,686

14,572
Deposits

Crore Taka
43,998

38,392
34,868
29,243
2011 2012 2013 2014 2015 25,221

2011 2012 2013 2014 2015

32
ANNUAL REPORT 2015

Graphical

Presentation of Performance

Cost to Income Ratio (%)

79.52
72.78 74.15 74.25

55.34

Shareholder’s Equity
Crore Taka

4,468
3,957
3,564

2011
2011 2012
2012 2013
2013 2014
2014 2015
2015
2,594

717

Non-Interest Income 2011 2012 2013 2014 2015

Crore Taka
1,922
1,831
1,719

1,311

1,058
Non-Performing Assets

Crore Taka

5,380
4,640

3,966
2011 2012 2013 2014 2015 3,580

2,149

2011 2012 2013 2014 2015

33
Chairman’s Message
Chairman’s Message
It’s a great pleasure to welcome all of you to the 9th Annual as against Tk.23,509 crore in 2014, with a growth of 4.13
General Meeting of Agrani Bank Limited (ABL). On behalf of percent over the previous year. This year, bank’s operating
the Board of Directors, I feel honored to present before you profit reached Tk. 877.47 crore.
a brief statement of some of the major achievements of the
Bank in the year ending on 31 December 2015. Complying with Bangladesh Bank’s rules & regulations, ABL
has put priority on agriculture and SME sector. This year we
At first, I recall with profound respect the greatest Bangalee of have disbursed Tk. 654 crore in agriculture and Tk. 2,191
all times, Father of the Nation, Bangabandhu Sheikh Mujibur crore in SME sector. To ensure excellent SME services and
Rahman. It is because of his visionary leadership Bangladesh strengthen this sector, a good number of measures have
came into being as an independent nation in the globe been undertaken.
in 1971. I remember with high esteem the four martyred
national leaders of Bangladesh. I also pay my tribute to the ABL signed Key Performance Indicators (KPI) contract with
martyred freedom fighters, war heroines and intellectuals of Bank and Financial Institutions Division, Ministry of Finance
our Liberation War in 1971. of the Government during the reporting year for the first
time covering 13 indicators including loans and advances,
Respected shareholders, in 2015 the global economic cash recovery of classified loan, capital adequacy ratio,
scenario was characterized by a number of economic and maintaining 100% provisions and development of human
geopolitical crises arising out of the Chinese devaluation resources etc. We have succeeded in achieving the target of
policy amid its slowing economic growth, the Greek drama some of the key indicators.
of GREXIT, uncertainty around BREXIT, the slump in the
price of crude oil, the refugees from Syria crisis and the ABL has been focusing on core risks management as per
terrorist threat posed by IS in the external front. Bangladesh regulatory guidelines from time to time. Necessary steps
economy witnessed consistent macroeconomic stability have been taken to strengthen an independent and
with lower inflation, declining interest rate, stable exchange functional Internal Control and Compliance.
rate, positive balance of payments and augmented foreign
exchange reserve based on some favorable external and Dear shareholders, ABL has been serving the nation while
internal factors. The country got upgraded to lower- middle keeping up the trust of the customers rendered on us. It
income country from a lower income country. has been possible because of good governance existing in
the ABL structure. The Board and the Bank Management
Despite surplus liquidity, negative shifting of yield curve of have been making relentless efforts to ensure meaningful
investment, higher rate of non performing assets, ABL has corporate governance in all spheres of banking activities
been able to maintain stable growth in major indicators. It which includes due diligence in sanctioning loan, post
has been able to maintain the first position for the succeeding disbursement follow up, management of non performing
four years among the SCBs in terms of foreign remittance. loans (NPL), effective utilization of fund to ensure higher
This year, the inflow of foreign remittance through different yields of investment, reduction of controllable expenses and
channels of ABL was Tk.13,204 crore. This has been possible ethical banking practice among the bank employees.
because of bringing all the branches under wide internet
coverage, establishing our own exchange houses in Distinguished shareholders, to be in the same tune of
different countries and having linkages with a good number government’s effort of digitizing the country, ABL is quite
of exchange houses abroad. As part of bank’s efforts to advanced in using information technology in every sphere
contribute to the continued inflow of foreign remittance, we of banking operation. To face the rising banking challenges
have introduced ABJL (Agrani Bidesh Jawar Loan) scheme 928 branches have been taken under Core Banking Solution
at a interest rate of 9%. We will take more steps through (T-24 software) till date. ABL has introduced agent banking
organizing remittance fair to make expatriate Bangladeshis services which is growing fast. Besides, we will soon launch
aware of our remittance services and the importance of mobile banking, credit card, internet banking with all kinds
remittance for the nation. of modern technological services.

Let me now recount some of the major achievements of the ABL is one of the development partners to the fruition of
Bank in the year 2015. The Bank continued to grow steadily government’s green agenda. To aware all the employees of
in all major areas. Deposits increased by 14.60 percent in in-house green banking, a green office guideline has been
2015 and reached Tk.43,998 crore from Tk.38,392 crore in circulated to all the branches and head office divisions. As
2014. Total loans and advances in 2015 was TK.24,480 crore far as green financing is concerned, Agrani Bank is providing

36
ANNUAL REPORT 2015

loans on relatively easy terms to solar panel installation, bio- cooperation. I strongly believe that with the support of all
gas plants, compost plants and other projects compliant stakeholders, ABL will grow faster and perform even better
with social and environmental risk management. in the coming days.
Finally, I would like to extend my sincere gratitude to my
board members for their wise counsel, our management
team and dedicated staff for their commitment to ABL.

I would also like to thank our valued shareholders, Dr. Zaid Bakht
customer and business partners, Bangladesh Bank and the Chairman
Government of Bangladesh for the outstanding support and The Board of Directors

37
Overview of

Managing Director & CEO


Overview of

Managing Director & CEO


Respected Shareholders During the year, our total deposits was Tk. 43,998 crore which
was Tk. 38,392 crore in 2014, loans and advances was Tk.
Assalamu Alaikum
24,480 crore which was Tk. 23,509 crore in 2014, operating
The economy of Bangladesh is uplifting from a lower to a profit was Tk. 878 crore at the end of 2015. Bank’s total assets
middle income country as the outcome of exemplary steps have also increased to Tk. 56,535 crore from Tk. 49,487 crore
of the Government. This has become possible especially i.e. 14.24 percent increase in the year. Import and export was
because of visionary plan and program of the present Tk.10,917 crore and Tk. 7,543 crore respectively. Remittance
government and its successful implementation and above reached to Tk. 13,204 crore from 12,980 crore with 1.73
all untiring efforts of our farmers, SME entrepreneurs and percent growth over the preceding year. In the year 2015,
expatriate Bangladeshis. On behalf of ABL, we congratulate Net Interest Margin was Tk. 69.25 crore which is positive
them all and express our continuous commitment to support figure among the three big SCBs.
them at all levels to our utmost.
We are happy to pronounce here that from 2012 to 2015 the
Before all else, with profound respect and reverence, we Bank continue to uphold it’s first position for the successive
recollect the valiant and intrepid martyred freedom fighters fourth year amidst SCBs to earn foreign remittance. For
of our Liberation War and the Great Bangalee of all times, the strong credit and better Balance Sheet management of
Father of the Nation, Bangabondhu Sheikh Mujibur Rahman. ABL, the multinational bank, Standard Charterd Bank of UK
allowed 100 million US Dollar soft loan for three years.
It gives me immense pleasure to be able to present before
you a report about the performance of the Bank in 2015 and Operational excellence coupled with qualitative
the prospect for the next year. ABL re-affirmed its position improvements continued to be of paramount importance
as a consistent performer and delivered healthy results in
to the Bank. As part of keeping the continuous growth
this year also. It’s the balanced blend of growth and quality
on right track, we are trying to adapt our strategies to the
which helped the Bank confidently navigating through
changing business environment by launching products,
tough macro-economic head winds.
controlling operating expenses, diversifying our credit
Functions and services of banks are changing within programs to more profitable areas, inventing new avenues in
the global financial system. In Bangladesh, our principal SME financing, manpower business, Islamic banking, green
competitors are also going through great changes as well. In banking and increasing branches of our overseas exchange
the last year, our main focus was on efficient service delivery houses as part of expanding business capacity of the Bank.
through smooth banking and forming a strong capital base
To ensure sustainable and consistent growth, ABL has
keeping eye on increasing business equitably. In ABL, our
financial system does more than simply transform savings developed sound risk management policies and framework
into investment. We also provide a variety of supporting as per Bangladesh Bank guidelines. All the risk management
services essential to modern living. Moreover, we are also policies and frameworks were reviewed by the wise Board
supporting government activities with green financing, Risk Management Committee comprising of four members
financial inclusion services and so on. of the Board. An independent division named ‘Risk
Management Division’ is established with the responsibility
In 2015, we have primarily focused on various complied of updating the risk management policies and monitoring
issues to put the Bank in further strong foothold on the implementation thereon.
ground to look forward boldly to harvest good future. We
hope in the long run that will be rewarded immensely by We would continue our all-out efforts towards recovery of
deriving business on a more secured base. classified and written-off loans. All concerned have been
advised to put in their sincere efforts to accelerate the pace
In 2015, we also focused in strengthening Bank’s internal of recovery. Special emphasis has been given to check
control and other supervisory units to mitigate all lapses and further classification of loans, settlement of pending suits for
lacks that occurred in the course of day to day business. Now recovery on priority basis and to acquire lawful possession of
we can confidently proclaim that the branch operation is very the mortgaged property.
transparent, prompt and in accordance with the regulations
in force. The Bank maintained sound and effective ICC round In 2015, we put emphasis on vertical and horizontal
the year. Re-organized ICC of ABL (consists of five Divisions) expansion of business. In spreading out horizontal, we
is headed by a fresh appointed General Manager who is a enlarged our branching by opening 9 new branches this
qualified Chartered Accountant. year. Hence, ABL is the second largest Bank of the country in

40
ANNUAL REPORT 2015

respect of branch network which is 932 at present. We had portion of customers still will prefer personalized service
employed 795 persons as officer (cash) and come forward and the opportunity to consult personally, one to one,
in aiding, with however modest an effort, to minimize with their financial advisor. It may be mentioned here that
country’s pressure of unemployment. We endeavoured a making efficient use of automation and other technological
lot to upgrade our core banking software and onlined 928 innovations require a high volume of sales. So, I would invite
branches till date so that our valued and judicious customers my beloved and wise colleagues to measure the issue and
can undergo a pleasant banking experience with our Bank. intensely extend business qualitatively and quantitatively.

Our Bank has been relentlessly pushing to popularize The level and gravity of competition in the banking field
technology driven products and services. In order to meet have grown as banks have proliferated their service offerings.
the growing expectations of our customers, online banking Our 932 branches (till date) are equipped with well-trained
with Core Banking Software T24 was introduced in our Bank manpower and functioning as a financial advising center.
from 1st July 2010. Amongst the SCBs, our Bank is pioneer in Customers can ask for financial advice, particularly when
online banking. Till now 928 branches of the Bank are fully it comes to the use of credit and the saving or investing
operating under online real time basis. Internet banking, of funds. At the pressure of shifting technology and
mobile banking and ATMs are included in the attempts of increasing competition we are qualifying our officers to offer
our online banking system. ABL, in association with DOER, personalized services to the knowledgeable and demanding
has already started financial services to the unbanked and customers.
underbanked citizens of Bangladesh through agents or
customer service providers. The project would continue The progress we made in the last twelve months was
under the ‘Agent Banking Draft Guideline’ that has been challenging, yet rewarding in large measure is the result
formulated by Bangladesh Bank. of the determination, dedication and toil of our staff. Their
integrity and character, their unwavering commitment to do
Credit Rating of ABL from 2007 to 2013 has been affirmed the right thing, the right way and their willingness indeed,
‘AAA’ in long term, ‘ST-1’ in short term as a government entity eagerness to go above and beyond the call of duty. I am
and ‘A-’ as Stand Alone Basis by the Credit Rating Information cofident in our ability to thrive and prosper in service of our
Services Ltd. (CRISL). And in 2014, ABL has been affirmed community in the years to come.
`AAA’ in long term, `AR-1’ in short term as a government
entity and ‘A’ as Stand Alone Basis by Alpha Credit Rating I would like to take this opportunity to impart my sincere
Ltd. which demonstrates strong financial soundness and thanks and gratitude to the Government of Bangladesh,
reputation of the Bank. Bangladesh Bank and other regulatory bodies for their
continued and prudent guidance and support to our journey
Human resource is always considered as the most important ahead.
asset for any organization. We have a pool of talented and
skilled workforce. We also focus on their career development I express my profound gratitude to the honorable Chairman
by nominating them in training, seminar and workshop at and the members of the Board for their bestowal of
home and abroad besides providing training in our Agrani stewardship of ABL upon me. I would also like to place my
Bank Training Institute in Dhaka and other outreach centers thanks to all valued shareholders, clients, well-wishers and
of divisional cities. patrons for being with us supporting our efforts all the time.

Banks have been facing with higher operating costs in recent Finally, I also like to thank all my dedicated colleagues of all
years and, therefore, have turned increasing to automation strata and the Management for their sincere contribution to
and the installation of sophisticated electronic systems the growth of the Bank and particularly the team associated
instead of older manual systems. This move toward greater with the hard work of bringing out this voluminous Annual
technological change is especially evident in the delivery Report of the year-2015.
of such services as dispensing payments and making credit
available to qualified customers. Service production and
delivery of ABL would be fully automated in the coming
days, though fully automated financial services for all Dr. Syed Abdul Hamid, FCA
customers may be a long time consuming, a substantial Managing Director & CEO

41
Shareholders’ Information

Distribution of Shares
Particulars
31 December 2015 31 December 2014

Government of Bangladesh 20,72,29,392

Directors 12

General Public _

Total 20,72,29,404

Shares held by Directors


Closing
Sl. No. Particulars Status Share Change
Position

1 Dr. Zaid Bakht Chairman 1 1 0%

2 Arastoo Khan Director 1 1 0%

3 Gokul Chand Das 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%

Total 12 12

Dividend Distribution

i) 100 Percent stock dividend i.e. 1 bonus share for every 1 share for the year 2008.

ii) 10 Percent stock dividend i.e. 1 bonus share for every 10 shares for the year 2009.

iii) 10 Percent stock dividend i.e. 1 bonus share for every 10 shares for the year 2010.

iv) 10 Percent stock dividend i.e. 1 bonus share for every 10 shares for the year 2011.

42
ANNUAL REPORT 2015

Signing

of Accounts 2015

A photo session of the concerned members of the Board of Directors and the Management Team
after Signing of Accounts of 2015 on April 28, 2016 at the Board Room of the Bank.

43
Financial Highlights
Taka in crore
Particulars 2015 2014 Change

Performance during the year

Interest revenue 2,363.54 2,339.48 1.03%

Interest cost 2,294.28 2,220.90 3.30%

Net interest revenue 69.26 118.59 (41.60%)

Income from investment 1495.24 1,301.11 14.92%

Other operating revenue 427.07 530.26 (19.46%)

Total operating revenue 1991.57 1,949.96 2.13%

Salary & allowances 695.84 617.03 12.77%

Other operating cost 418.25 258.98 61.50%

Total operating cost 1114.09 876.01 27.18%

Profit before amortization, provision and tax 877.48 1,073.95 (18.29%)

Amortization ( valuation adjustment) 132.95 132.95 -

Provision for loans and advances 555.79 409.02 35.88%

Other provision 248.63 361.50 (31.22)

Profit before tax (59.89) 170.49 (135.13%)

Provision for tax (125.20) (28.13) 345.08%

Net profit after tax 65.31 198.61 (67.12%)

At the end of the year

Paid up capital 2072.29 2,072.29 -

Total shareholders equity 4467.59 3,956.66 12.91%

Deposits 43997.55 38,392.19 14.60%

Total contingent liabilities and commitments 9006.88 8,398.27 7.25%

Loans and advances 24480.18 23,508.57 4.13%

Amount of classified loans 4640.41 3,965.95 17.01%

Provision kept against classified loans 2244.52 1,930.01 16.30%

Investments 20569.75 15,227.98 35.08%

Interest earning assets 26265.38 25,030.90 4.93%

Non interest earning assets 30269.77 24,456.18 23.77%

Fixed assets 1594.95 1,544.72 (3.25%)

Total assets 56535.15 49,487.08 14.24%

44
ANNUAL REPORT 2015

Key Ratios
Sl.
Particulars 2015 2014
No.

Profitability and performance ratios

1 Net profit ratio 1.52% 4.76%

2 Cost to income ratio 79.52% 74.25%

3 Return on assets 0.12% 0.40%

4 Return on equity (after amortization, provision & tax) 1.46% 5.02%

5 Non-interest expenses to total assets 1.97% 1.77%

6 Non-interest income to total assets 3.40% 3.70%

7 Interest margin to total assets 0.12% 0.24%

8 Earnings per share (Taka) 3.15 9.58

9 Net asset value per share (Taka) 216 191

10 Cost of fund 9.01 9.58%

11 Return on investment 7.27 8.54%

Liquidity and solvency ratios

1 Current ratio 1.17 1.19

2 Debt to total assets ratio 0.92 0.92

3 Loans & advances to deposit ratio 55.64% 61.23%

4 Loans & advances to total assets ratio 43.30% 47.50%

5 Provision to total loans & advances 11.11% 9.68%

Capital adequacy ratios

Capital adequacy ratio 9.54% 10.44%

i. Tier I Capital 6.60% 6.13%

ii.Tier II Capital 2.94% 4.31%

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.

45
Graphical Presentation of

Key Financial Information

Deposit Mix of 2015 (%) Loans & Advance Matrix 2015


Taka in Crore

Current & other Bills Purchased &


Discount 470 Cash Credit
Savings Bank Deposits 9.53 2,848
Loan Others Over Drafts
Deposits 26.63 7864 354
Agricredit
1187

Fixed Deposit Industrial Credit


Bills Payable 1.10 7107
SME Credit
62.74 4650

Advance Deposit Ratio (%) Total Classified Loans (%)

76.95
80 72.72 30
25.30
70 61.23
58.21 25
55.64
60 18.96
17.93 16.96
20
50

40 15 11.07
30
10
20
5
10

0 0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

Net Classified Loan to Net Loans (%) Constituent of Assets 2015


Crore Taka
24,480
10 25000
8.40 20,570

8 6.81 6.84 20000


6.20

6 15000

3.44
4 10000
5,625
4,265
2 5000 1,595

0 0 ment ets ce
Invest Ass Assets Assets Advan
2011 2012 2013 2014 2015 Fixed Other Liquid Loans
&

46
ANNUAL REPORT 2015

Graphical Presentation of

Key Financial Information

Current Ratio Total Assets


Crore Taka
56,535
2.5 2.21 60000
49,487
50000 44,416
2.0
1.64 1.60 37,872
40000 34,882
1.5 1.19 1.17
30000
1.0
20000

0.5
10000

0.0 0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

Debt Equity Ratio Return on Equity (%)

60 50 25.39
51.86 9.64 5.02 1.46
0
50
-50
40
-100
30
-150
20 12.44 11.46 11.51 11.65 -200

10 -250
-259.94
0 -300
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

Net Interest Margin Capital Adequacy Ratio (%)

398.27 Crore Taka


400 12
10.44
10.04
350 9.54
10
300
8
250

200 6
126.53 118.59
150
4
100 69.25
2
50

0 0
2012 2013 2014 2015 2013 2014 2015

47
Graphical Presentation of

Key Financial Information

Fixed Assets Growth Capital Growth

Crore Taka Crore Taka


4,468

1,545 1,595 3,957


1,525
3,564

1,123 1,138
2,594

717

2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

Growth of Advance 2015 (%) Growth of Deposits 2015 (%)

14.6
13.09 13.27

4.13

National Agrani National Agrani

Import Export

Crore Taka Crore Taka


26,877 9,310
8,838
8,345
7,845
7,543

16,963
15,947 15,741

10,917

2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

48
ANNUAL REPORT 2015

Value Added Statement


The value added statement for the Bank shows the values created and distributed among different stakeholders of the
Bank. Value added by the Bank stood at Tk. 761 crore as of 31 December 2015 against Tk. 897 crore as of 31 December
2014.

2015 2014

Value Addition Taka in crore In percent Taka in crore In percent

a. Income from Banking Service 4,286 4,170 -

b. Less: Cost of Services & Supplies 2,668 2,444 -

c. Value added by the Banking Services (a-b) 1,618 1,726 -

d. Add: Non-Banking income - - -

e. Less: Amortization, Loan Loss Provision and Other


857 829 -
Provisions except Incentive Bonus

Value added ( c+d-e) 761 897  -

Distribution of Value addition

To Employees as Salaries, Allowances and Bonus 775 101% 691 77%

To Goverment as Income Tax 13 2% 13 1%

To Statutory Reserve - 34 4%

Retained Profit 65 9% 163 18%

Depreciation 46 6% 37 4%

Deferred Tax (138) (18%) (41) (4%)

Total 761 100% 897 100%

Distribution of Value Addition 2015


Taka in Crore
775
800
700
600
500
400
300
200
100 65 46
13 Deferred Tax
0 Retained Profit Depreciation Govt. Income Tax Employees Salaries
Allowances & Bonus

-100
-138
-200

49
Economic Impact Report
The Bank’s overall objective is to deliver optimum value to Regulatory capital requirements are, therefore, necessary to
our depositors, employees, shareholders and our business prevent banks from expanding beyond their ability to man-
strategy is to gear up towards achieving this. This section age (over-trading), to improve the quality of bank’s assets, to
covers the value we deliver to our shareholders and the na- control the ability of bank’s leverage to their growth and to
tion at large. lead to higher earnings on assets, leading to peace of mind
of all the stakeholders. The Bank keeps a careful check on its
The Bank’s policy has been to deliver best possible value in
capital adequacy ratio.
a manner that is consistent with the highest level of fairness
and transparency. For the Bank, it has not been a case of Maintaining Liquidity
building financial value and increasing profit at any cost, but The liquidity policy of the Bank has always been to carry a
rather participating in a process of creating value through positive mismatch in the interest earning assets and interest
fair and ethical means. Building sustainable value of all bearing liabilities in the 1 to 30 days category. ABL’s liquidity
stakeholders is an important goal of the Bank. remained at optimum level during the year. The liquid assets
ratio stood at 49.79 percent (required 19.50 percent of total
Maintaining Capital Adequacy
demand & time deposits) in December 2015.
Capital adequacy symbolizes the financial strength and sta-
bility of a bank. It limits the extent up to which a bank can Market Share
expand its business in terms of risk-weighted assets. Like all As on 31st December 2015 the Bank holds 3.97 percent of
commercial institutions, banks too constantly look at ways the total loans and advances and 5.90 percent of deposit bal-
of expanding their operations by acquiring property, plant ance, 3.55 percent of import and 2.97 percent of export of all
& equipment, opening branches, in addition to mobilizing banks of Bangladesh. Foreign remittance is 11.00 percent of
loans and investing in other income generating assets. total national remittance figure.

Figure in crore

Item of Business National Figure ABL Figure Market Share

Deposits 7,45,567.90 43,997.55 5.90%

Loans & Advances 6,17,365.20 24,480.18 3.97%

Import 3,07,819.41 10,916.58 3.55%

Export 2,53,848.46 7,543.35 2.97%

Remittance 1,20,047.41 13,203.51 11.00%

50
ANNUAL REPORT 2015

Credit Rating Report


Agrani Bank Limited has been rated by the Alpha Credit Rating Limited on the basis of Financial Statements for the year ended
December 31, 2014. A comparative position of the Credit Rating (both as Goverment Guaranteed Bank and as Commercial
Bank) of Agrani Bank Limited for the year 2014 and 2013 is furnished below:

Rating as Government Guaranteed Bank

Year-2014 Rated by
Year-2013 Rated by CRISL Definition
Alpha Credit Rating Ltd.

Long Term Long Term


Exceptionally Strong Capacity
AAA AAA

Short Term Short Term


Superior Capacity
ST-1 AR-1

Date of Rating Declaration 07-12-2015

Validity of Rating 06-12-2016

Outlook Stable

Considering the ABL a 100% State Owned Commercial Bank (SCB) and highly integrated Government Supported Entity (GSE),
Alpha Credit Rating Limited, from risk point of view, affirmed its ‘AAA’ rating in the Long Term and ‘AR-1’ rating in the Short
Term. The highest ratings have been assigned in consideration of implied commitment of the Government of the People’s
Republic of Bangladesh to the Bank to extend its support through policy and other matters to address any adverse situation
which is key consideration in the above ratings.

Rating as Commercial Bank (Stand Alone Basis)

Year-2013 Year-2014 Definition

Long Term Long Term


Strong Capacity
A- A

Short Term Short Term


Strong Capacity
ST-2 AR-2

As commercial bank (Stand Alone Basis) Alpha Credit Rating Limited affirmed rating ‘A’ in the Long Term and ‘AR-2’ rating in
the Short Term.

51
Deposit

Remittance Loans &


Advances

Products
Export and SME
Services

Import Online
Banking
Cash
Services

Products and Services


Products and Services
1. Deposit c) Rural & Agro Credit
• Crop Loan
• Fishery Loan
• Animal Husbandry Loan
a) Taka Account • Agri Machinary Loan
• Current Deposit (CD) • Rural Transport Loan
• Savings Deposit (SB) • Swanirvar Loan
• Fixed Deposit (FDR) • Poverty Alleviation Loan
• Special Notice Time Deposit (SNTD)
• Non-Resident Special Taka Account (NRTA)
• Non-Resident Investors Taka Account (NRIT)
• Agrani Bank Pension Scheme (APS) d) Small and Medium Enterprise Loan
• Service Sector Loan
• Agrani Bank Bishesh Shanchay Scheme (ABS)
• Trading Sector Loan
• Students Savings A/C (School Banking)
• Manufacturing Sector Loan
• Small Life Insurance Policy Holders A/C • Women Enterpreneurs Loan
• Ten Taka Farmers A/C • Agrani Bidesh Jawar Loan (ABJL)
• Freedom Fighters A/C
• Other Beneficiaries A/C under Social Securities
Program

e) Import Finance
• Loan Against Imported Merchandise (LIM)
• Loan Against Trust Receipt (LTR)
• Payment Against Document (PAD)
b) Foreign Currency Account
• Foreign Currency (FC) A/C
• Non-Resident Foreign Currency Deposit (NFCD)
A/C
• Resident Foreign Currency Deposit (RFCD) A/C f ) Export Finance
• Export Cash Credit
• Exporters Retention Quota (ERQ) A/C
• Packing Credit (PC)
• Local / Foreign Bills Purchased (FBP)
• Loan Against Export Development Fund (EDF)
• Advance Against Cash Incentive (Subsidy, Assistance)
2. Loans & Advances

a) Continuous Loan 3. Treasury


• Cash Credit (Hypo)
• Cash Credit (Pledge)
a) Money Market
• Secured Overdraft (SOD)
• Maintaining CRR and SLR
• Call Money Transaction
• Term Placement (FDR)
b) Term Loan • Treasury Bills
• Industrial Credit (IC) • Treasury Bonds
• Housing Loan (General & Commercial) • Secondary Trading of Govt. Securities
• Consumer Credit • Repo
• Loan for Overseas Employment • Reverse Repo
• Custodian Services
• Weavers’ Credit
• Other Investments

54
ANNUAL REPORT 2015

b) Foreign Exchange Market


• Selling Foreign Currency for Import Payment
8. Fund Transfer
• Buying Foreign Currency against Export Proceeds
• Fixation of Exchange Rate
• Foreign Currency Buying and Selling • Inter-Branch Money Transfer
• SWAP Transactions • SWIFT
• Forward Transaction • Telegraphic Transfer (TT)
• Term Placement • Issuing Foreign Draft
• Encashing Foreign Draft
• Bangladesh Electronic Fund Transfer Network (BEFTN)
• Bangladesh Automated Clearing House (BACH)
• Online Deposit to Accounts
4. Letter of Credit • Real Time Gross Settelment (RTGS)

• Letter of Credit - Sight


• Letter of Credit - Usance
• Back to Back L/C
9. Value Added Service

5. Letter of Guarantee • Locker Service


• Utility Bill Collection
• Arm forces Pension Payment

• Advance Payment Guarantee


• Bid Bond
• Performance Guarantee
• Shipping Guarantee 10. Merchant Banking Service
• Guarantee - Others
• Standby Credit
• Issue Management
• Underwriting
• Portfolio Management
6. Other Foreign Exchange Service

• Documentary Bill Collection 11. Islamic Banking Service


• Advanced Payment for Import & Export
• Foreign Remittance (Incoming & Outgoing)
• Foreign Currency Endorsement against Passport a) Deposit
• Issuance of Draft, TT • Al Wadiah Current A/C
• Collection of Draft, Cheque, TC • Mudaraba Savings A/C
• Opening of Student File, Medical File • Mudaraba STD A/C
• Mudaraba Term Deposit
• Mudaraba Special Scheme Deposit

7. Cash Service b) Investment


• Bai Murabaha (Pledge)
• Bai Muazzal (Hypo)
• ATM Service
• Higher purchase Shirkatul Meilk
• Cheque Encashment
• Bai Sal
• Foreign Currency

55
Board of Directors
& Committees

Legal &
Monitoring Regulatory

Communication

Business Practices
Enterprise Risk & Ethics
Management

Disclosure &
Transparency

Corporate Governance
Corporate Governance the Managing Director & CEO as an ex-officio director. All
the directors of ABL are non-executive directors except
the Managing Director & CEO. Consequent upon the
Focus corporatization, the Board exercises greater autonomy in
running the Bank more effectively than before.
Since Agrani Bank Limited as a bank company deals with
public money and interest of depositors, the principal Supporting Committees
objective of ABL is to ensure good corporate governance As per BRPD circular no-11 dated 27 October 2013, The Board
through upholding transparency and accountability of all has formed three sub-committees - Executive Committee,
concerned in respect of its overall financial , operational and Audit Committee and Risk Management Committee.
administrative policymaking and executive affairs including
overall business activities, internal control, human resources Board Members’ Independence
management and development & expenditure etc. along
All members of the Board are nominated by the Government
with lending and risk management issues.
and each of them holds one share which is less than one
The Bank is structured and developed in line with the percent of paid-up shares of the Bank. The members of
acceptable corporate governance practices and guidelines the Board gives decision on various business issues in the
of the following entities: the Bangladesh Bank, Bank and Board meetings independently, since they don not have
Financial Institution Division of the Ministry of Finance. any sorts of business relationship or involvement with the
management of the Bank.
Appointment of Board of Directors
Directors’ Information
The Ministry of Finance by order of the honorable President
circulates notification, as per amended section 15 of the As far as circulation of directors’ information is concerned,
Bank Company Act, 1991 (amended up to 2013), on the ABL, from time to time, disseminates updated directors’
appointment of directors of the Bank. particulars to other banks and financial institutions.

Appointment of Chairman of the Board Remuneration of Chairman & Directors


The name of the Chairman of the Bank is nominated by the As per DFIM(Department of Financial Institutions & Markets)
Government and approved by the Board. BRPD circular #11 Circular no.13 dated 2015, each of the directors receive
dated 27 October 2013 and articles of the association of the honorarium of tk 8000 (including tax) for attending a Board
Bank have clearly defined roles and responsibilities of the Meeting or any other committee meeting.
Chairman.
Annual General Meeting
Appointment of Managing Director & CEO Complying with the Bank Company Act 1991 and according
In order to strengthen the financial base of the Bank and to the Memorandum & Articles of Association of the Bank,
obtain confidence of the depositors, Bank and Financial Agrani Bank Limited holds Annual General Meeting each
Institution Division, the Ministry of Finance following the year.
sub-section 4 of section 15 of Bank Company Act 1991
(amended up to 2013) appointed Mr. Syed Abdul Hamid, Directors’ Report to Shareholders
an experienced and eligible person, as MD & CEO not over Complying with the section 1.5 of Bangladesh Securities
65 years of age having higher educational qualification, and Exchange Commission Notification No. SEC/
excellent record of performance, entrusting him with CMRRCD/2006-158/Admin/44 dated 7 August 2012 and
required responsibilities and authorities. section 184 of the Companies Act 1994, Agrani Bank Limited
discloses Directors’ Report to Shareholders each year. The
Appointment of Observer detailed Directors’ Report to Shareholders has been given at
To supervise and closely observe the implementation of the chepter-Directors’ Report to the Shareholders.
terms and conditions as stipulated in the Memorandum
of Understanding (MoU) signed between Bangladesh Responsibilities and Authorities of the Board of Directors
Bank and Agrani Bank Limited, Bangladesh Bank by dint of To ensure good governance in the Bank, the Bank Company
power vested on it by Bank Company Act 1991 (amended Act 1991(Amended up to 2013) has endowed the Board
up to 2013) has appointed Mr. Nirmal Chandra Bhakta, an of Directors with required responsibilities and authorities
Executive Director as observer in the Bank. He, on behalf of for establishing policies for the Bank Company, for risk
Bangladesh Bank, attends board meetings, audit committee management, internal control, internal audit & compliance
meetings and executive committee meetings and expresses and for ensuring their implementation.
his opinion on the agenda of the meetings.
Responsibilities of the Chairman of the Board of
Board Structure Directors
The Board of Directors consists of 12 members, including The Chairman of the Board of Directors does not personally
the Chairman as the head of the Board of Directors and possess the jurisdiction to apply policymaking or executive

58
ANNUAL REPORT 2015

authority. He also does not participate in or interfere into Evaluation of Performance MD & CEO
the administrative or operational and routine affairs of the With the objective of bringing proper commercial
Bank. environment, increased efficiency, establishment of
accountability and dynamism, the Board of Directors from
Complying with Banking Regulation & Policy Department
time to time, evaluates the performance of MD & CEO through
of Bangladesh Bank, the Chairman conducts on-site
observing and analyzing achievement of key performance
inspection of any branch or financing activities under the
targets as stated and set in the Performance Contract made
purview of the oversight responsibilities of the Board. He
between Bank and Financial Institution Division, Ministry of
also calls for any information relating to bank’s operation
Finance, Peoples’ Republic of Bangladesh represented by
or ask for investigation into such affairs and submits such
Secretary and Agrani Bank Limited represented by MD &
information or investigation report to the meeting of the
CEO.
Board and effects necessary action in accordance with set
rules through MD & CEO. Lending and Risk Management
Board Meetings The Board approves, under the purview of existing laws,
rules and regulations, the policies, strategies, procedures
Complying with the prudential guidelines for banks set etc. in respect of appraisal of loan/investment proposal,
by Bangladesh Bank, the board of directors with required sanction, disbursement, recovery, rescheduling and write-
quorum comprising not less than three members as off. The board specifically distributes the power of sanction
stipulated in the memorandum and articles of association of loan/investment. No director, however, interferes, directly
of Agrani Bank Limited meets at least once in a month. or indirectly, into the process of loan approval.

45 Board meetings were held in the year 2015 as shown The Board frames policies for risk management and get
in the table below: them complied with and monitors the compliance thereof. A
separate division of the Bank named Core Risk Management
Division formed as per instruction of Bangladesh Bank has
Number
Date of been working rigorously to overcome the challenges of core
of
Name of Directors appoint- risks.
meetings
ment
attended Risk Management Committee
Dr. Zaid Bakht 13.11.2014 45 To formulate appropriate strategies for risk assessment
and strengthen risk management of the Bank, a Risk
Arastoo Khan 24-12-2012 38
Management Committee comprising four members of the
Gokul Chand Das 28-12-2015 01 Board has been formed complying with BRPD circular no-11
dated 27 October 2013.
Engineer Md. Abdus Sabur 20-12-2012 39
K.M.N. Manjurul Hoque Lablu 11-03-2013 44 Meeting of Risk Management Committee
The committee held 3 three meetings in 2015. The number
Niaz Rahim 20-12-2012 07
of meetings attended by the committee members has been
Advocate Balaram Podder 20-12-2012 44 shown in the table given below:

Prof. Dr. Md. Abdur Rouf Sardar 20-12-2012 43


Position Num-
Shameem Ahsan 20-12-2012 30 in the ber of
Name of Members
Commit- meetings
Md. Altaf Hossain Molla 20-12-2012 43
tee attended
A B M Kamarul Islam 20-12-2012 43
Arastoo Khan Chairman 3
Hasina Newaaz 20-12-2012 40
Engineer Md. Abdus Sabur Member 3
Syed Abdul Hamid, PhD,FCA 09-07-2015 45
Prof. Dr. Md. Abdur Rouf Sardar Member 3
Strategic Planning and Management Shameem Ahsan Member On leave
The Board determines the objectives and goals and to this
end shall set the strategies and work-plans on annual basis. Role of the Risk Management Committee
It engages itself in the affairs of making strategies consistent The risk management committee approves policies &
with the determined objectives and goals and in the guidelines regarding risk of the Bank. The committee also
issues relating to structural change and reorganization for reviews and amends the policies, whenever necessary and
enhancement of institutional efficiency and other relevant sends it to the Board of Directors for their approval. The
policy matters. committee monitors activities for compliance of instructions

59
regarding lending risk, foreign exchange transaction risk, are prepared according to existing accounting rules,
money laundering risk, data storage & communication risk regulations and standards.
including other risk related guidelines.
Review of ICC Policy
Audit Committee The Board of Directors, from time to time, reviews and
To strengthen internal control and compliance functions of updates Internal Control & Compliance (ICC) policies in the
the Bank, the Audit Committee comprising five members of context of banking business circumstances.
the Board has been formed complying with BRPD circular
no-11 dated 27 October 2013. Statutory Audit
The profit & loss account and financial report of Agrani Bank
Internal Control Management
Limited is audited by audit firms qualified under existing law
The Board is always vigilant on the internal control system
for the time being in force to be an auditor of companies and
of the Bank in order to attain and maintain satisfactory
enlisted by Bangladesh Bank.
qualitative standard of its loan/investment portfolio. It
reviews the reports submitted by its audit committee The Board of Directors appointed Hoda Vasi Chowdhury &
regarding compliance of recommendations made in Co. Chartered Accountants and A. Qasem & Co. Chartered
internal and external audit reports and the Bangladesh Bank
Accountants to carry a statutory audit on the Bank for the
inspection reports.
year 2015.
Meeting of Audit Committee
Human Resources Management and Development
The committee held 16(sixteen) meetings in 2015. The
number of meetings attended by the committee members The board frames and approves service rules relating
has been shown in the table given below: to recruitment, promotion, transfer, disciplinary and
punitive measures and human resources development
Number etc. The Chairman or Directors in no way interfere into any
Status administrative affairs including recruitment, promotion,
of
Name of Members in the transfer and disciplinary measures as executed under the set
meetings
Committee service rules. Recruitment and promotion to the immediate
attended
two tiers below CEO rests upon the board.
Arastoo Khan Chairman 16
Executive Committee
Engineer Md. Abdus Sabur Member 13
To give directions for maintaining daily or routine activities
Advocate Balaram Podder Member 16 and organizational discipline of the Bank, an executive
Md. Altaf Hossain Molla Member 16 committee comprising six members from the Board of
Directors shown in the table below has been formed as per
Role of the Audit Committee BRPD Circular no-11 dated 27 October 2013.
The committee approves Internal Control & Compliance
Roles and Responsibilities of the Executive Committee
(ICC) Policies of the Bank and ensures that the activities
of the Bank are being carried out in accordance with the The executive committee decides in those cases as instructed
applicable rules and regulations of Bangladesh Bank, Bank by the Board of Directors that are not specifically assigned to
Companies Act 1991(amended up to 2013), Companies Act full board through the Bank Company Act 1991 and other
1994 and internal rules, regulations & policies of the Bank. laws and regulations. The members of the committee take all
The committee examines whether internal control strategies, necessary decisions within power delegated by the Board of
findings and recommendations made by the internal, Directors on punishment to the guilty employee depending
regulatory and external auditors i.e.Bangladesh Bank, on the nature of irregularities committed, reviews divisional
commercial audit are implemented by the management or legal cases regarding appeal by the affected staff, officer
not. It also reviews the activities of the internal audit and for reinstatement to service, appeal for remission of
ensures that no unjustified restriction or limitation hinders punishment and security related matters concerning theft,
the internal audit process. The committee considers report burglary taken place in different branches at different times.
relating to fraud, forgery, deficiencies in internal control
All decisions taken in the executive committee are ratified in
or other similar issues detected by internal and external
the next board meeting.
auditors and inspectors of the regulatory authority and
place it before the Board after reviewing whether necessary Meeting of Executive Committee
corrective measures have been taken by the management.
The committee held six meetings in 2015. The number of
The committee reviews and discusses with the management meetings attended by the committee members has been
and external auditors to ensure that the financial statements shown in the table given below:

60
ANNUAL REPORT 2015

(MANCOM) and Asset Liability Committee (ALCO), Credit


Status in Number of
Committee (CRECOM) comprising of members from top
Name of Members the meetings
management are in place.
Committee attended

Dr. Zaid Bakht Chairman 6 Management Committee (MANCOM)


The management committee (MANCOM) is mainly
K.M.N.Manjurul Hoque Lablu Member 6 responsible for management of risks related to
Prof. Dr. Md. Abdur Rouf Sardar Member 6 administration, operation, purchase, development, training,
discipline and appeal etc. The committee places before
Shameem Ahsan Member 4 the Board for approval its policy recommendations and
guidelines regarding risks assessment, management, control
A B M Kamarul Islam Member 6
and reporting. It also puts forward its recommendations on
Hasina Newaaz Member 6 quantification process of risk demarcation, its use while
capital allocation and relevance to annual budgeting &
Financial Management planning for board approval. It observes the precision and
The Board approves the annual budget and the statutory timeliness of risk reports on all activities of the Bank. It is also
financial statements. It also reviews/monitors the positions responsible for introducing such a risk controlling culture
in respect of bank’s income, expenditure, liquidity, non- that encourages the highest level of ethical behaviors
performing asset, capital base and adequacy, maintenance among the employees. As far as risk related employees are
of loan loss provision and steps taken for recovery of concerned, the committee is also responsible for building a
defaulted loans including legal measures. risk savvy smart workforce.

The Board also frames the policies and procedures for bank’s Credit Committee (CRECOM)
purchase and procurement activities and approves the The committee is mainly responsible for implementation
distribution of power for making such expenditures. The of risk management policies approved by the Board. The
Board formulates delegation of such power rests on the CEO credit committee deals with introducing credit strategy
and his subordinates. after board approval proportionate to nature of debtor and
business, interest rate, loan documentation, risk grading,
The decision on matters relating to infrastructure standardization of credit analysis, proper valuation, scoring,
development and purchase of land, building, vehicles etc. for reporting, auditing, classification and provisioning. The
the purpose of bank’s business is adopted with the approval committee under the authority devolved on them by the
of the Board. Board gives decision on new loan facility, rescheduling
& reconsideration and approves rejects, recommends or
Responsibilities and Authorities of the MD & CEO
ratifies loan proposals.
The CEO discharges his own responsibilities in terms of
the financial, business and administrative authorities Asset Liability Committee (ALCOM)
vested upon him by the Board. He is accountable for Asset Liability Committee ensures adequate liquidity capital
achievement of financial and other business targets by reserves and proper fund management to meet business
means of business plan, efficient implementation thereof needs and comply with statutory laws and regulations.
and prudent administrative and financial management. He ALCOM performs balance sheet management in such a
ensures compliance of the Bank Companies Act, 1991 and way that adequacy of liquidity and capital is maintained,
other relevant laws and regulations in discharge of routine ensuring proper application of fund diversification strategy
functions of the Bank. He also reports to Bangladesh Bank in the light of source, term, instrument and currency. The
of issues relating to violation of Bank Companies Act 1991 or Asset Liability Committee is also responsible for introducing
of other laws/regulations and if required, apprises the Board and implementation of policies on capital, funding, asset
post facto. The recruitment and promotion of all staff of the allocation and liquidity.
Bank except those in the two tiers below him rests on the
CEO. He acts in such cases in accordance with the approved Other Information
service rules on the basis of the human resources policy and Compliance with the Code of Conduct
sanctioned strength of employees as approved by the Board.
As part of upholding ethical business standard & practices,
Responsibilities and Functions of the Bank Management every employee of ABL has to comply with the code of
Team conduct pertaining to the ABL Service Rule violation of
which results in reduction to a lower stage in a time scale of
To execute daily routine functions smoothly and implement
pay, reduction to a lower post, compulsory retirement and
policies approved by the Board regarding credit, internal
removal from service, dismissal from service.
control & compliance, asset-liability management, risk
management, administration, operation, discipline etc. All employees shall conform to and abide by these
several committee namely Management Committee regulations ,observe, obey all orders and directions which

61
may, from time to time, given by any person or persons the post loan supervision and maintaining timely and
under whose jurisdiction, superintendence or control he regular liaison with the debtors.
may, from time to time, be placed. All employees should
serve the Bank honestly and diligently, use his/her utmost Credit Rating
endeavour to promote the interest of the Bank, maintain As per BRPD Circular No. 6 dated 5 July 2006 requiring
strict secrecy regarding the affairs of the Bank. to safeguard the interest of the prospective investors,
depositors and creditors and also the Bank management as
Payment of Employee Income Tax a whole overall performances in the relevant area including
As far as employee income tax is concerned, the employees core risks, the Bank has appointed Alpha Credit Rating
of Agrani Bank Limited pay regular income tax on salary Limited for doing credit rating of the Bank . The credit rating
complying with the ordinance of NBR (National Board agency in 2014 awarded ABL AAA for long term & AR-1 for
Revenue). By doing so the employees of ABL have been short term in government support category and A for long
contributing to the government’s income tax department term & AR-2 for short term in without government support
from their own salary sources. category and the outlook for the Bank was given stable.

Delegation of Power Publication of Audited Financial Statement and Annual Report


In order to extend business and settle internal affairs Agrani Bank Limited, complying with Bank Company Act
quickly and effectively in the perspective of ever changing 1991, prepares and publishes each year a balance sheet and
banking environment, the Bank has its delegation of power profit & loss account as well as financial report duly signed
on administrative and financial related matters approved by the concerned parties as on the last working day of the
by the Board of Directors. The delegated power has been year.
decentralized ensuring accountability so that the person
concerned applies this power judiciously and prudently only Compliance with BSEC and RJSC
for the welfare of the organization. Misuse of the delegated As far as increase of paid up capital is concerned, ABL receives
power amounts to violation of serious corporate norms. Bangladesh Securities & Exchange Commission’s (BSEC)
The delegation of power on administrative affairs concerns consent to that effect, complying with all the procedures.
deployment of discretionary power within the perimeter of
Agrani Bank Employees Service Rule 1995. In terms of Director related information such as appointment,
retirement, holding of shares and changes, whenever
The delegation of power on financial affairs concerns necessary, in the Memorandum and Articles of Association
deployment of discretionary power within the approved of the bank, Agrani Bank Limited has these duly certified by
sector-wise annual budget subjective to concerned the Registrar of Joint Stock Companies and Firms (RJSC).
regulatory bodies such as Ministry of Finance, Bangladesh
Bank. Corporate Social Obligation and Responsibility
Agrani Bank Limited spends a significant amount of money
So far, Agrani Bank Limited from its inception has been
in the form of CSR activities as a part of our moral obligation
complying with the rules and regulations set in the
to the society to provide the disadvantaged and the
Delegation of Power 2002.
deprived with a platform to make his/her presence felt in the
Customer Priority society, keeping in mind the mantra that each one counts
irrespective of religion, caste and position. In 2015 ABL has
Since customers are the driving force of the Bank, ABL always
spent Tk. 2905.02 lac from CSR fund as donation in the form
tries to the maximum level to ensure customer sovereignty
of social development activities.
by providing the customers with the excellent services
following the corporate norms & regulations. Environmental Obligation
To ensure customer supremacy, customers can lodge in From the prick of conscience for green planet, ABL is trying to
writing their complaints over any sorts of dissatisfaction be at par with the government’s vision of Green Bangladesh.
or send their opinions on any other matters to Managing To comply with the Bangladesh Bank’s policy guidelines for
Director & CEO. The Managing Director & CEO instructs the green banking, the Bank has opened a separate division
division concerned to take urgent necessary action on that named Green Banking Division & introduced paperless
score. banking. To aware all the employees of in-house green
banking, a green office guideline has been circulated to
Depositors’ trust is protected by ensuring on-demand all the branches and head office divisions. As far as green
liquidity and giving the depositors fair contract terms & keen financing is concerned, Agrani Bank is providing loans on
interest rate on various consumer products. As far as loans easy conditions to solar panel installation, bio-gas plants,
& investment is concerned, ABL makes investment in such compost plants and other enterprises producing eco-
sectors as are productive for the national economy while friendly agro-products. Besides, in terms of credit approval,
preserving the debtors’ interest in a way that they get fair ABL has made it mandatory for factories to have Effluent
lending rate and they do not get defaulters by monitoring Treatment Plant (ETP).

62
ANNUAL REPORT 2015

Status of Compliance Requirement of Bangladesh


Bank’s Guidelines for Corporate Governance
BRPD Circular no 11 dated 27 October 2013

Compliance Status

Non Compliance
Explanation for
Not Complied

Remarks
(if any)
Sl

Complied
Particulars
no.

1. Formation & Responsibilities of Board of Directors of a Bank Company.


Board of Directors of a bank should be comprised with competent and professionally
persons with a view to formulating policy-guidelines and supervising business
activities of the bank efficiently as well as ensuring good governance in the bank
management. The responsibilities of the board of directors of a bank-company are
more important than those of other companies; because in case of a bank-company it √
is essential to earn and maintain confidence of the depositors as its business is mainly
run with the depositors’ money. The following directives are given for ensuring good
governance regarding constitution of board of directors, their duties & responsibilities
and other related activities.
2. 1. Formation of Board of Directors
The newly amended Section 15 of the Bank Company Act, 1991 (Amended upto 2013)
includes provisions for prior approval of Bangladesh Bank before the appointment of
new bank directors, as well as dismissal, termination or removal of any director from √
the post; director’s fit & proper criteria; maximum number of directors; appointment
of independent directors; appointment of maximum 2(two) members from a family
as director; etc.

3. Appointment of New directors


Under section 15(4) of the Bank Company Act, 1991 (amended upto 2013), every
banking company, other than specialized banks, at the time of taking prior approval
from Bangladesh Bank for appointing/reappointing directors should furnish the fol-
lowing documents along with the application.
a) Personal information of the nominated person (Appendix-ka) √
b) Nominated person’s declaration(Appendix-kha) √
c) ‘Declaration for confidentiality’ by the nominated person(Appendix-ga) √
d) In case of Independent director, the approval letter from Security and Exchange So far, no
commission independent
director has
been
appointed
e) In case of Independent director, a declaration of the directors concern as Appendix-
gha (he will also submit declaration under Appendix-ka, kha & ga) N/A

f ) CIB report of the nominated person √


g) Updated list of the directors. √
4. 1.2. Vacation of office of Director
a) The office of director shall be vacated according to the instructions specified in
section 108(1) of the Companies Act, 1994. Besides, when a bank director becomes
defaulter and does not repay the loan within two months after getting a notice under √
the section 17 of the Bank Company Act, 1991; provides false statement at the time of
appointment; or fails to fulfil the minimum eligibility criteria, the office of the director
will be vacated.

63
Compliance Status

Non Compliance
Explanation for
Not Complied

Remarks
(if any)
Complied
Sl
Particulars
no.

b) If the office of a director is vacated by a notice under the section 17 of BCA, the
person will not be eligible to become a director of the bank or any other bank or any
financial institution for one year from the date of repayment of the total amount due
to the bank. It is mentionable here that the dues can be adjusted with the shares held √
by the director in that bank. When a director receives a notice under section 17 of
BCA, 1991, he/she can’t transfer his/her shares of that bank until he/she repays all the
liabilities of the noticed bank or financial institution.
c) Besides, Bangladesh Bank can remove a director or chairman of a bank, except
state owned banks, for conducting any kind of activities that is detrimental to the
interest of the banks depositors or against the public interest under Section 46 and N/A
can supersede the board of a banking company under Section 47 of BCA, 1991.
5. 1.3. Removal of Directors from office
According to section 108(2) of the Companies Act, 1994, with the prior approval of
Bangladesh Bank, a bank director other than specialized banks can be removed from
his office for the reason specified in its Articles of Association. For this purpose, the √
reason and grounds of the dismissal/removal and copy of the decision of the board
and list of directors should be submitted to Bangladesh Bank. In this case, the removal
will be effective from the date of Bangladesh Bank’s approval.
6. 1.4. Appointment of Alternate Director
Subject to compliance of section 101 of the Companies Act, 1994, an alternate
director can be appointed to act for a director during his absence for a continuous √
period of not less than three months from Bangladesh. In this context, the following
instructions should be followed:
a) Bank has to collect and properly maintain the documentary evidences relating
to departure and arrival of the original director. If there is any exception, the chief √
executive officer should immediately inform it to Bangladesh Bank.
b) The copy of the decision of the board regarding appointment of alternate director,
with original director’s probable returning date from abroad should be sent to

Bangladesh Bank within 7 days of taking the decision and the director’s arrival date
must be intimated to Bangladesh Bank immediately after his return.
c) Any loan defaulter or any person who is not eligible to become a director as per any

rules & regulation will not be appointed as an alternate director.
d) As appointment of alternate director is a temporary measure; therefore, he/she will

not be included in any kind of committee constituted by the board.
e) While in the office, an alternate director or his/her affiliated organization will not
get any kind of loan facilities from his bank. In case of previous loan, enhancement
of limit or extension of time period or any kind of exemption or interest waiver will √
not be allowed. Moreover, all restrictions applicable to directors according to rules &
regulations will also be applicable to the alternate director
7. 2. Depositor Director
As the previous provisions regarding appointment of Depositor Directors of
the Bank Company Act, 1991 has been amended; appointment of director from
depositors is no longer required. But, after complying regulation under sec 15(9) of N/A
the Bank Company Act, 1991 (amended upto 2013) bank can consider the tenure of
existing depositor director or may appoint them as independent director.
8. 3. Information regarding Directors
Banks are advised to take the following steps regarding director information:

64
ANNUAL REPORT 2015

Compliance Status

Non Compliance
Explanation for
Not Complied

Remarks
(if any)
Complied
Sl
Particulars
no.

a) Every bank should keep an updated list of bank directors, √


b) Banks should send a directors’ list to other banks or financial institutions
immediately after the appointment or release of director. √

c) Banks should display a list of directors in the website and update it on a regular
basis. √

9. Responsibilities and Authorities of the Board of Directors


a) Work-planning and strategic management
i. The board shall determine the objectives and goals and to this end shall chalk
out strategies and work-plans on annual basis. It shall specially engage itself in the
affairs of making strategies consistent with the determined objectives and goals
and in the issues relating to structural change and reformation for enhancement of √
institutional efficiency and other relevant policy matters. It shall quarterly analyze/
monitor the development of implementation of the work-plans.

ii. The board shall have its analytical review incorporated in the Annual Report as
regards to the success/failure in achieving the business and other targets as set out in
its annual work-plan and shall apprise the shareholders of its opinions/
recommendations on future plans and strategies. It shall set the Key Performance √
Indicators (KPIs) for the CEO & officers immediate two tiers below the CEO, and have
it evaluated from time to time.
10. b) Credit and risk management
i. The policies, strategies, procedures etc. in respect of appraisal of loan/investment
proposal, sanction, disbursement, recovery, reschedule and write-off thereof shall be
made with the board’s approval under the purview of the existing laws, rules and reg-
ulations. The board shall specifically distribute the power of sanction of loan/invest- √
ment and such distribution should desirably be made among the CEO and his subor-
dinate executives as much as possible. No director, however, shall interfere, direct or
indirect, into the process of loan approval.
ii. The board shall frame policies for risk management and get them complied with
and shall monitor the compliance at quarterly basis and review the concerned report
of the risk management team and shall compile in the minutes of the board meeting. √
The board shall monitor the compliance of the guidelines of Bangladesh Bank
regarding key risk management.

11. c) Internal control management


The board shall be vigilant on the internal control system of the bank in order to attain
and maintain satisfactory qualitative standard of its loan/investment portfolio. The
board will establish such an internal control system so that the internal audit

process can be conducted independently from the management. It shall review the
reports submitted by its audit committee at quarterly basis regarding compliance of
recommendations made in internal and external audit reports and the Bangladesh
Bank inspection reports.
12. d) Human resources management and development
i. Policies relating to recruitment, promotion, transfer, disciplinary and punitive
measures, human resources development etc. and service rules shall be framed and
approved by the board. The chairman or the directors shall in no way involve
themselves or interfere into or influence over any administrative affairs including
recruitment, promotion, transfer and disciplinary measures as executed under
the set service rules. No member of the board of directors shall be included in the √
selection committees for recruitment and promotion to different levels. Recruitment,
promotion, transfer & punishment of the officers immediate two tiers below the CEO
shall, however, rest upon the board. Such recruitment and promotion shall have
to be carried out complying with the service rules i.e., policies for recruitment and
promotion.

65
Compliance Status

Non Compliance
Explanation for
Not Complied

Remarks
(if any)
Complied
Sl
Particulars
no.

ii. The board shall focus its special attention to the development of skills of bank’s staff
in different fields of its business activities including prudent appraisal of loan/
investment proposals, and to the adoption of modern electronic and information √
technologies and the introduction of effective Management Information System
(MIS). The board shall get these programmes incorporated in its annual work plan.
iii. The board will compose Code of Ethics for every tier and they will follow it properly.
The board will promote healthy code of conducts for developing a compliance √
culture.
13. e) Financial management
i. The annual budget and the statutory financial statements shall be finalized with
the approval of the board. It shall at quarterly rests review/monitor the positions in

respect of bank’s income, expenditure, liquidity, non-performing asset, capital base
and adequacy, maintenance of loan loss provision and steps taken for recovery of
defaulted loans including legal measures.
ii. The board shall frame the policies and procedures for bank’s purchase and
procurement activities and shall accordingly approve the distribution of power for
making such expenditures. The maximum possible delegation of such power of
expenditures shall rest on the CEO and his subordinates. The decision on matters √
relating to infrastructure development and purchase of land, building, vehicles etc.
for the purpose of bank’s business shall, however, be adopted with the approval of
the board.
iii. The board will review whether an Asset-Liability Committee (ALCO) has been

formed and it is working according to Bangladesh Bank guidelines.
14. g) Other responsibilities of the Board
The board should follow and comply with the responsibilities assigned by Bangladesh √
Bank.
15. 4.2. Meeting of Board
Board of directors may meet once or more than once in a month if necessary. But

Board of directors shall meet at least once in every three months. Excessive meetings
are discouraged.
16. 4.3. Responsibilities of the Chairman of the Board of Directors
a) As the chairman of the board of directors or chairman of any committee formed by
the board or any director does not personally possess the jurisdiction to apply policy √
making or executive authority, he/she shall not participate in or interfere into the
administrative or operational and routine affairs of the bank.
b) The chairman may conduct on-site inspection of any bank-branch or financing
activities under the purview of the oversight responsibilities of the board. He may
call for any information relating to bank’s operation or ask for investigation into any
such affairs; he may submit such information or investigation report to the meeting
of the board or the executive committee and if deemed necessary, with the approval √
of the board, he shall effect necessary action thereon in accordance with the set rules
through the CEO. However, any complaint against the CEO shall have to be apprised
to Bangladesh Bank through the board along with the statement of the CEO.

17. 5. Formation of committees from the Board of Directors


Each bank company can form 1(one) executive committee, 1(one) audit committee
and 1(one) risk management committee with the directors. Board can’t form any √
other permanent, temporary or sub- committee except the above mentioned three
committees.

66
ANNUAL REPORT 2015

Compliance Status

Non Compliance
Explanation for
Not Complied

Remarks
(if any)
Complied
Sl
Particulars
no.

18. 5.1. Executive committee


Roles and Responsibilities of the Executive Committee:
i. The executive committee can decide or can act in those cases as instructed by the
Board of directors that are not specifically assigned on full board through the Bank. √
Company Act, 1991 and other laws and regulations.
ii. The executive committee can take all necessary decision or can approve cases
within power delegated by the board of directors. √

iii. All decisions taken in the executive committee should be ratified in the next board
meeting. √

5.2. Audit Committee


Roles and Responsibilities of the Audit Committee:
(i) Internal Control
1. Evaluates whether management is setting the appropriate compliance culture by
communicating the importance of internal control and the management of risk and √
ensuring that all employees have clear understanding of their roles and responsibilities
2. Reviews management’s actions in building computerization of the bank and its
applications and bank’s Management Information System (MIS). √

3. Considers whether internal control strategies recommended by internal and


external auditors have been implemented by the management. √

4. Considers reports relating to fraud, forgery, deficiencies in internal control or


other similar issues detected by internal and external auditors and inspectors of the
regulatory authority and place it before the board after reviewing whether necessary √
corrective measures have been taken by the management.
(ii) Financial Reporting
1. Audit committee will check whether the financial statements reflect the complete
and concrete information and determine whether the statements are prepared √
according to existing rules & regulations and standards enforced in the country and as
per relevant prescribed accounting standards set by Bangladesh Bank.
2. Discuss with management and the external auditors to review the financial
statements before its finalization. √

iii) Internal Audit


1. Audit committee will monitor whether internal audit working independently from √
the management.
2. Review the activities of the internal audit and the organizational structure and
ensure that no unjustified restriction or limitation hinders the internal audit process; √

3. Examine the efficiency and effectiveness of internal audit function. √


4. Examine whether the findings and recommendations made by the internal auditors
are duly considered by the management or not. √

(iv) External Audit


1. Review the performance of the external auditors and their audit reports. √

2. Examine whether the findings and recommendations made by the external auditors
are duly considered by the management or not. √

3. Make recommendations to the board regarding the appointment of the external


auditors. √

67
Compliance Status

Non Compliance
Explanation for
Not Complied

Remarks
(if any)
Complied
Sl
Particulars
no.

(v) Compliance with existing laws and Regulations


Review whether the laws and regulations framed by the regulatory authorities
(central bank and other bodies) and internal regulations approved by the board are √
being complied with.

(vi) Other Responsibilities


1. Submit compliance report to the board on quarterly basis on regularization of the
omission, fraud and forgeries and other irregularities detected by the internal and √
external auditors and inspectors of regulatory authorities.

2. External and internal auditors will submit their related assessment report, if the

committee solicit.
3. Perform other oversight functions as desired by the Board of Directors and evaluate
the committee’s own performance on a regular basis. √

5.3. Risk Management Committee


Roles and Responsibilities of the Risk Management Committee:
i) Risk identification & control policy
Formulation and implementation of appropriate strategies for risk assessment and its
control is the responsibility of Risk Management Committee. Risk Management Com-
mittee will monitor risk management policies & methods and amend it if necessary. √
The committee will review the risk management process to ensure effective preven-
tion and control measures.
vi) Other responsibilities
1. Committee’s decision and suggestions should be submitted to the Board of Direc- √
tors quarterly in short form.
2. Comply instructions issued time to time by the controlling body. √
3. Internal & external auditor will submit respective evaluation report whenever re-
quired by the committee. √

19 Training for the Directors


The directors shall make themselves fully aware of the banking laws and other related √
rules and regulations for performing his duties properly.

68
ANNUAL REPORT 2015

IDENTIFYING
RISK

RISK
REVIEWING ASSESSING
CONTROLS MANAGEMENT RISK

CONTROLLING
RISK

Risk Management

69
Risk Management
Banking business operation inherently carries various types prescribed by Bangladesh Bank and approved by the bank in
of risk that hampers business potentiality as well as its different functional areas apart from capital adequacy risk.
profitability prospects. The institute which can manage the The division holds monthly meeting where risk management
risky events with expert hand can survive and steps forward initiatives, capital management and risk sensitivities issues
in today’s market of economic era. Banking business is a are discussed on the basis of information and data on the risk
business of borrowing and lending. So potentiality of risk is profile of the bank and if any deviation is found, proactive
inherent in any transaction. Considering this, risk assessment measures are taken.
is a must before introducing a product in market.
Credit Risk Management
Risk Management in ABL
The risk a bank mainly inherent is credit risk. The soundness
Risk is intrinsic in any target oriented operations. The risk of a bank depends on soundness of its credit portfolio. So
of a bank is defined as the probability of financial losses or prudently credit risk management is the ultimate target of
otherwise. Risk management is a discipline at the care of total risk management. ABL has its own guidelines on credit
every financial institution and encompasses all the activities risk management. The soundness of a bank depends on the
that affect its risk profile. That’s why risk management has line with international practice and the directives of BB. Every
become a vital issue in present global financial scenario. The loan is analyzed from its very initiatives so that it may come
prime objective of the risk management is that bank takes back with profit. The following steps are taken to mitigate
better calculative business risks, at the same time, keeping risk of credit items:
safe the bank’s capital, financial resources and profitability
from various business risks. (i) A new loan proposal or extension of an existing loan is
considered with great care. In this case, quality borrower
Principles is to be selected. To select quality borrower CRG system
ABL has approved policies and procedures covering all risks is applied. Satisfactory grading point in CRG is helpful
areas ensuring risks are properly addressed and protected for to select quality borrower. Other than this, borrower’s
sustainable development of the Bank. These are formulated financial behavior and social interaction is also an
taking into account Bangladesh Bank’s Guidelines on important considerable subject in this regard.
managing core risks on Credit Risk as well as the business (ii) Credit requirement: Credit requirement is fixed
environment in which the bank operates. It claims specific considering the proposed project’s size and its market
need for particular type of operation or transaction and share in its market area. Overflow of cash may lead
international best practices. The objectives of the guidelines the entrepreneur to divert fund that may cause risk to
are as follows: recover money from counter party. On the other hand,
capital short fall may be a cause of hamper in regular
a) Protection of bank’s capital
transaction. ABL considers all accounting papers and
b) Growth of business project profile of the of the proposed loan to fix credit
c) Risk adjusted performance measurement requirements.
d) Consistency of earnings (iii) Collateral: Collateral is one of the main tools for
e) Quality and transparency of management safeguard of credit. Easy marketability and proper /legal
ownership of the collateral is examined. To get remedy
These policies are regularly reviewed and updated to keep from any damage of the collateral, insurance coverage
pace with the changing operating environment, technology is being taken.
and regulatory requirement.
(iv) Personal information of the borrower is affixed in a
At the highest level, the BOD determines the risk strategy, prescribed form known KYC form.
policy principles and limits as per recommendations of the
Management of existing loan portfolio
CRECOM, as well as ALCOM. The MANCOM, ALCOM regularly
review the exposure of ABL’s activities and portfolio. Loan portfolio of ABL is closely monitored so that any
movement may be identified and can be brought under
ABL’s organogram has been restructured with inclusion remedial action. ABL has a system of tracking the loan
of a separate Risk Management Division in line with the account which is under risks or potential weakness of
regulatory requirement to address and supervise the a material nature requires monitoring, supervision and
existing and potential business and capital risk. It oversees close attention of the management. Early identification,
the movement of various core risk management guidelines prompt reporting and proactive measure can protect loans

70
ANNUAL REPORT 2015

from being downgraded or negative shifting. ABL has a To minimize credit loses, monitoring procedures and
separate division named Recovery and NPA Management systems are in place that provides an early indication of the
Division that collects information of loans from field levels deteriorating financial health of a borrower. Transaction
and movements are brought under surveillance of the profile of every individual loan is closely monitored by the
management. Top listed regular loans and defaulted loans dealing officer and any deterioration is being reported to
are taken under direct supervision of top management. higher authority.
To address credit risk, ABL has identified following major
The bank has a separate Recovery and NPA Management
areas for practicing sound risk assessment and ultimately to
Division. This division monitors classified and written-off
mitigate them:
loans under direct supervision of an assigned General
1) ABL has ensured a sound credit environment for its Manager. They present the total feature to the line
stakeholders. The apex body BOD of the bank adopts management and to the apex body on monthly basis. ABL
new credit policy and reviews existing policies in line has a system of tracking the loan account which is under
with banking norms of the country for the safeguard of risks or potential weaknesses of a material nature and
the interest of the institution. The senior management which requires monitoring, supervision and close attention
will be liable in case of non compliance of the approved of the management. Early identification, prompt reporting
policy.
and proactive measure can protect loans from being
2) ABL practices sound credit granting process as invested downgraded or negative shifting.
capital with its spread may be returned smoothly.
Following approaches are considered in this regard: Mitigation
(a) After receiving a loan proposal its purpose, market In ABL a thorough assessment of risk is done before granting
contribution, counter party’s equity, his socio- or extending credit and a plan in this regard is worked out.
economical behavior etc. are brought under The bank has segregated duties among the officers and
consideration. All the required information are executives involved in credit related activities. The total
collected in a prescribed form named KYC (Know Your team works accordingly. ABL has a system of tracking risky
Customer) form. and potentially weak loan accounts. Bank has dedicated
(b) To measure the risk behavior of a proposed loan CRG teams to monitor and supervise them. Respective assigned
(Credit Risk Grading) is filled in. In this form behavior person promptly reports to the delegated authority to
pattern of counterparty and various viability of take measure so that the loan may not be downgraded or
proposed business are measured in some grading hindered the assets portfolio of the bank. To coordinate with
point. Only satisfactory grading point holder counter higher management and field level, Recovery division is
party would be granted for. assigned to monitor and report the NPL status. This division
chalks out plans to recover classified loans including written-
(c) In ABL, name lending is avoided with special care.
off loans. It reviews progress quarterly and reports to the
Credit facilities is being allowed absolutely on
higher management. The bank determines the forced sale
business consideration with due diligence.
value (FSV) of collaterals held against credits. Collaterals are
(d) Collateral: Collateral is the main tools of credit segregated into (i) Financial and (ii) Physical collateral. The
protection. So collateral taken against a loan is objective of credit risk management is to bring back lent
valued properly. Other than this its legal ownership, money safely and strengthen the bank as well as national
present market value, market value in future changed economy.
economical scenario, liquidation aspect etc. are
considered in case of taking collateral. Asset Liability Management (ALM) Risk Management
(e) To address future risk on collateral adequate insurance Asset-Liability mismatches create liquidity risk. Liquidity
coverage is ascertained. risk is termed as the possible inability of the bank to meet
(f ) In case of syndicated loan ABL assesses them its financial obligations on account of maturity mismatch
independently. If its quality, returns and risk are not between assets and liabilities. It also includes inability to
acceptable, ABL does not take part depending only liquidate any asset at reasonable price in a timely manner.
on lead arranger’s report. Liquidity risk can arise due to market liquidity or funding
(g) ABL always adheres to all adopted policy of the liquidity.
regulatory body of banking sector as well as of the
Liquidity risk is often triggered by the consequences of other
national fiscal policy.
financial risks like credit, interest rate and foreign exchange
Monitoring risk etc. Asset-liability management desk of the bank closely
Loan portfolio of bank is closely monitored so that early monitors and controls liquidity requirements on daily
remedial steps may be taken in case of being down graded. basis of appropriate coordination of funding activities. The

71
principle responsibility of the liquidity risk management Act, Anti-Terroism Act. Preventing money laundering
of the bank rests with Treasury Division which maintains activities and combating terror financing activities are
liquidity based on historical requirements, current liquidity essential parts of ABL’s core risk management strategies. In
position, anticipated future funding requirement, sources line with evolving regulatory rules and acts relating to the
of fund, present and anticipated asset quality, present prevention and combating process, ABL has formulated its
and future earning capacity etc. The overall objective is to own policy guidelines and manuals to follow and implement
provide cost effective funding to finance the asset growth by the officials at all levels for effective management .
and trade related transactions, optimize the funding cost,
increase spread with the lowest possible liquidity, maturity, For mitigating the risks ABL has taken the following
foreign exchange and interest rate risks. activities:
i) ABL has formed Central Compliance Unit(CCU) headed
To deal with Asset-Liability Management risk, ABL has a by the Chief Anti Money Laundering Compliance Officer
dedicated committee called the Asset- Liability Committee
(CAMLCO) at Branch & Subsidiaries Unit Controll Division
(ALCOM) comprising of the senior officials of the Bank to make
(BSUCD) in Head Office. Anti-Money Laundering Compliance
important decisions related to the Balance Sheet, Liquidity,
Unit is also functioning under the Branch Anti Money
Interest Rate Risk and Foreign Exchange risk of the Bank.
Laundering Compliance Officer (BAMLCO) and Zonal Anti
The ALCOM generally meets at least once in every month
Money Laundering Compliance Officer at Branches and
and reviews liquidity requirement, the maturity of assets
Zonal Offices respectively.
and liabilities, deposit and loan pricing strategy/transfer
pricing, sensitivity of assets and liabilities, key management ii) The policy and guidelines are subject to update as and
indicators and the liquidity contingency plan of the bank. when become necessary.
In every ALCOM meeting the key points of the discussions
are minuted and the action points are highlighted to ensure iii) ABL has introduced uniform Account opening Forms,
implementation. As a part of regulatory requirement, the KYC (Know Your Customer) profile, and TP (Transaction
management reviews the ALM manual and its components Profile) and CTR (Cash Transaction Report) in the Bank as
regularly. per instruction of Bangladesh Bank.
iv) Transaction Profile (TP) is maintaining with proper
To manage the interest rate risk in ABL, ALCOM regularly
description of the frequency and amount of transaction.
monitors money market condition as well as the bank’s
KYC and TP are filled up at the time of opening account
interest rate on both deposit and lending. However bank has
and updated with the transaction profile of the
been identifying both the interest rate sensitive assets and
customers from time to time.
liabilities and classified them into different time bucket to
find the assets/liability mismatch. v) Monthly Cash Transaction Report (CTR) is sent to
Bangladesh Bank for the customers depositing or
ABL has a contingency plan to reduce unexpected or withdrawing cash BDT 1.00 million and above in any day.
unusual situations which could lead to market disruption.
Contingency plan can provide a useful framework for vi) Unusual/suspicious transactions are reported to
managing liquidity risk both in short term and in the long Bangladesh Bank.
term. Further, it helps ensure that bank prudently and
vii) Training is being continiously given to all the categories
efficiently manage routine and extraordinary fluctuations in
of executives and officers for developing awareness and
liquidity.
skill for identifying suspicious transactions and other
Money Laundering Risk Management activities relating to money laundering.
Money laundering risk is defined as the loss of reputation ABL is a compliant and responsible institution committed to
and expenses incurred as penalty for being negligent in the highest standard of Anti Money Laundering compliance
prevention of money laundering. Bangladesh has enacted and adheres to set rules & declared standards to prevent
the Anti Money Laundering prevention Act, 2012 & Anti- use of our products and services for money laundering
Terroism Act, 2012 which covers all the international purpose. In addition to the legal compliance, Agrani Bank
standards and requirements and assigned BFIU of BB to Limited considers AML & CFT compliance as part of its social
discharge the regulatory responsibility of implementation & responsibility & commitment.
monitoring of the AML & CFT activities to keep the financial
system of the country safe & compliant. In order to ensure Foreign Exchange Risk Management
corporate governance practices and aiming at protecting Foreign exchange risk arises from the potential change in
the Bank and its employees, shareholders, management the rate of foreign exchange which may affect profit and
and customers, ABL is committed to comply with all the capital of the bank. The frequency and direction of rate
applicable rules of the Anti Money Laundering prevention changes, the extent of foreign currency exposure and the

72
ANNUAL REPORT 2015

ability of counterparty to honour their obligation to the bank of the bank bear significant risk. Thus the issue of effective
are significant factors in foreign exchange risk management. internal control system, corporate governance, transparency
In addition the bank is also exposed to interest rate risk and and accountability etc. have become of great importance.
settlement risk on account of it’s foreign exchange business. Weakness in internal control system may lead to significant
amount of loss which may be originated from internal &
Agrani Bank Limited has formulated foreign exchange risk external fraud, employee practices & workplace safety,
manual as per guidelines given by Bangladesh Bank to business practices, damage of physical assets, business
measure, monitor and control different foreign exchange disruption & system failure and process management etc.
risks. Bank also developed different strategies to control
foreign exchange risk by setting limits on net open position Internal Control is the process affected by an organization’s
by currencies, overall gross limit for forward transaction, Board of Directors, management and other personnel,
maximum loss limits per deal and per day, counterparty limit designed to provide reasonable assurance regarding the
etc. The foreign exchange risk of the bank is minimal as all achievement of objectives in the effectiveness and efficiency
the transaction are principally carried out on behalf of the of operations at all level within the organization. The process
customers against underlying L/C commitment and other includes all the policies and procedures established to
remittance requirements. manage and control a particular risk or business activity to
which the bank is exposed to.
Foreign exchange risks are measured, monitored and
addressed by Treasury Division through Front Office, The main objectives of the Internal Control System can be
Mid Office and Back Office. Treasury front office reviews categorized as follows:
the market conditions, exchange rates, exposure and
• Efficiency and effectiveness of activities (performance
transactions on daily basis in fixation of exchange rates to
objectives).
mitigate foreign exchange risk. It manages and controls day-
to-day trading activities under the supervision of Managing • Reliability, completeness and timeliness of financial and
Director and CEO and suggestion/instruction of ALCOM that management information.
ensures continuous monitoring of the level of assumed risk. • Compliance with applicable laws, regulations
The mid office provides information to the management (compliance objectives).
to implement risk management system with counterparty
limit. The mid office monitors exposure limit, stop loss To ensure appropriate level of internal control system, ABL’s
limit of treasury and report to the management on key ICC has been structured as per prescribed organizational
parameter of performance. Back Office is responsible for deal structure of Bangladesh Bank ‘Core Risk Management
confirmation, settlement of transaction, transferring fund to Guidelines’. It’s Internal Control & Compliance functions are
Nostro account, recording and reporting of information on jointly performed by Audit & Inspection Division-1, Audit
exchange transactions and currency transfer etc. Reporting & Inspection Division-2, Audit Monitoring Division, Audit
lines of these three offices are separate and independent to Compliance Division (Internal Audit Compliance) and Audit
ensure risk minimization. Compliance Division (External Audit Compliance). ICC is
headed by a General Manager for co-ordination from a
All foreign exchange transactions are revalued at mark-to- single platform.
market method at the month end according to Bangladesh
Audit & Inspection Divisions conduct on-site periodical and
Bank’s guidelines. All Nostro accounts are reconciled
special inspections as per Risk Based Audit Plan approved by
fortnightly. Outstanding entries beyond 15 days are reviewed
the Board to verify whether there exists any noncompliant
by the management for settlement purpose.
issue. Monitoring Division is engaged with on-site and off-
Bank’s Audit and Inspection Division conducts regular audit site monitoring functions. Compliance division deals with
to comply with the foreign exchange risk management the in-house developed and regulatory compliance related
policy. Audit findings are submitted to Internal Control and activities and also functions as the contact point of the bank.
Compliance Division and are reported to the Board Audit They ensure that corrective action plans are implemented
Committee of the bank. within the set dead line as well as ensure proper corporate
discipline and awareness. ICC places a summary of audit
The Bank prudently managed the foreign exchange position & inspection reports to the Board Audit Committee and
and earned a considerable amount of profit through it’s measures are taken according to decisions of the Committee.
foreign exchange business.
Information & Communication Technology (ICT) Risk
Internal Control and Compliance (ICC) Risk Management
Today’s banks are involved in diversified & complex financial Information and communication Technology (ICT)
activities. These financial activities and international business has become the heart of banking sector. The effect of

73
globalization, competition and innovation in banking e) Develop skilled manpower by imparting training on
makes essential the understanding of how various aspects different IT tasks for relevant employees;
of customer behavior affect the innovation and respond f ) Managing IT risk using the effective, efficient and right
to customer service delivery. To catch up with global tools.
development, improve the quality of customer service
delivery and reduce transaction cost, banks have invested The Bank has grown significantly over the years in branch
heavily in ICT and have extensively adopted ICT networks automation. 816 branches (as on December, 2015) are
for delivering a wide range of value added products and operating under T-24 Centralized Online Core banking
services. Information and communication technology (ICT) software (CBS) and rest of the branches will be brought
has, in particular, brought a complete paradigm shift on the under centralized on line system in phases.
banks performance.
Other Risks
IT risk management enables the management to initiate
In addition, the Bank also manages the risk, taking into
effective management decision to ensure smooth business
consideration the reputation risk, liquidity risk, operational
operations. As banks adopt technology as part of their
ongoing strategic tool to face challenges in the emerging risk, market risk, credit concentration risk, interest rate risk,
realities of business, they are increasingly exposed to settlement risk, environmental and climate risk, residual risk
technology risks. It is therefore imperative for each bank and equity price risk which are described below:
to work out appropriate IT risk management strategies to
Reputation Risk
secure its vital information asset. It also ensures that risk
management systems and processes are strengthened on Reputation Risk is the current or prospective risk arising from
continual basis to secure both present and future banking adverse perception of the image of the bank on the part
activities. of the customers, counterparties, shareholders, investors
or regulators. Bank’s CAMEL’s rating, regulatory non-
Agrani Bank Limited has board approved ICT policy in compliance, non-payment of banks commitment, customer
compliance with ICT guidelines of Bangladesh Bank complaint and service quality, regulatory penalties etc. are
covering various aspect of ICT risk management. The policy factors that cause this risk.
is updated regularly to cope with the evolving changes in the
ICT environment both within the bank and overall industry. The Bank manages the reputation risk ensuring the
Agrani Bank Limited follows a robust, effective and efficient following:
Information Technology with its centralized Core Banking a) The Bank effectively develops its policies for risk
System and other applications. Agrani bank has upgraded its management to refrain from committing violation of
Network Infrastructure, Data Center and Disaster Recovery laws, regulations, best banking practices and consumer
Site with efficient and utmost security measures. The bank
rights that could affect its reputation.
has adequately addressed ICT risk management which
ensures ICT security functions and operations in a more b) Management anticipates and responds to change of a
effective manner. IT has enabled efficient, accurate and market or regulatory nature that affect its reputation in
timely management of the increased transaction volume the market place.
of Agrani bank Limited that comes with a larger customer
base. Adoption of technology has delighted the customers Residual Risk
in terms of convenience and satisfaction through new A Bank may mitigate risks by the way of collateral, but
products, services and efficient delivery channels. collateral can pose additional risks (legal, documentation
Agrani bank has already made significant progress and taken and liquidity risks) which may deteriorate the impact of
necessary steps to implement ICT functions properly which risk mitigation. For example, (1) The liquidation of collateral
are as follows- is either problematic or time consuming due to error of
documentation or delay in legal proceedings. (2) Collateral
a) Identify threats and vulnerabilities to information security;
were valued inappropriately (i.e. Overvaluation). Bank takes
b) Strictly follow password control, network security, virus extra precaution through process strengthening and CRM
protection, access to Internet and emailing etc; application.
c) Conducts IT Audit in branches on a periodic basis and
taking necessary measures to ensure IT security and Operational Risk
smooth IT operations; Operational risk arises mainly due to inadequate or failed
d) ATM ensures access to banking services round the clock internal process, people and systems, or from external
24/7. Agrani Bank Limited has its own 27 ATM network events (including legal risk). The bank is managing these risks
and more than 1173 Shared ATM booths located at through written procedures, regular training and awareness
different places of the country; program. ICC Division monitors operational procedure of

74
ANNUAL REPORT 2015

the Bank. It undertakes periodical and special audit of the risk and ALCOM monitors the activities of Treasury Division
branches and divisions at the Head Office for reviewing of in managing the risk.
the operation and compliance of statutory requirements.
Interest Rate Risk
Liquidity Risk Interest rate risk arises when a banks principal and interest
Liquidity Risk is defined as current or prospective threat cash flow (including final maturities) both On and Off-
to an institution’s earnings and capital as a result of the Balance Sheet, have mismatched repricing dates. The
possibility that it will not be able to meet its short term amount at risk is a function of the magnitude or direction of
payment obligations at any point in time without incurring interest rate changes and the size and maturity structure of
unacceptable cost or losses. ABL manages its liquidity in the mismatched position. ALCOM of the bank monitors the
such a way that it avoids running into liquidity problem. interest rate movement on a regular basis.
This means that asset and Liability position both On and Off
Equity Price Risk
Balance Sheet were matched in such a way that the bank is
able to meet its obligation immediately and continuously Equity risk is defined as losses due to changes in market
price of equity held. Mark to market valuation of the share
without adversely affecting its solvency. ABL has contingency
investment portfolio is done to measure and identify the
plan approved by the Board for handling potential liquidity
risk. To minimize equity price risk, diversification is enforced
crisis.
as per bank’s own policy.
Credit Concentration Risk
Environmental and Climate change Risk management
Credit concentration risk may arise from credit exposures
Environmental risk is a facilitating element of credit risk
in the same economic or geographic sector and/or credit
arising from environmental issues. It refers to the uncertainty
concentration in dependent industries which the Bank
or probable losses that originate from any adverse
addresses through proper evaluation. Credit Concentration
environmental or climate change events (natural or man
of ABL is used in a broader sense and includes the following: made) and the non-compliance of the prevailing national
environmental regulations. Climate change impact can lead
i) Concentration by economic purpose (sector).
to the borrower not being able to continue the business
ii) Concentration by size of Loan Accounts/ in the name of a activities and hence unable to service/ repay the financing
single borrower. taken from the bank.
iii) Concentration by a legally connected group of borrowers.
The overall purpose of Environmental Risk Management is to
iv) Concentration by region (geographical).
understand and manage risks that arise from environmental
v) Concentration by portfolio type (granularity). concerns. The specific purposes are to:
Any higher concentration will require maintaining higher
a) Examine the environmental issues and concerns
amount of capital buffer due to risks in these categories.
associated with potential business activities proposed
ABL has strategy to redistribute credit concentration and for financing.
cap borrowings exposures to reduce capital requirement for
b) Identify, evaluate and manage the environmental risks
these risks.
and associated financial implications arising from these
Settlement Risk issues and concerns.
Settlement risk arises from non-realization of receivable c) Enhance the credit risk appraisal process.
from bills and counterparty commitments (both local
Giving emphasis on the above topics, Bangladesh Bank
and foreign) . These are ABL’s receivables and bank has to
vide BRPD Circular No.01 dated: 30-01-2011 formulated the
ensure strong supervision, monitoring and tracking for
guidelines on Environmental Risk Management (ERM) for
realization of receivables in time. This often requires review Banks/ NBFIs. To comply with Bangladesh Bank guidelines
of counterparty’s limit and exposure. The bank‘s monitoring and adoption thereof in our bank, ABL prepared its own
and follow-up tracking system address the cause of these guidelines which is the integral part of the banks credit risk
risks. management.
Market Risk ABL addresses issues possessing environmental risks before
It is the risk of potential losses in the On-balance Sheet and any financing is made. It recognizes Environmental Risk
Off-balance Sheet positions of a bank steams from adverse management to comply with regulatory standard and
movement in market rates or prices such as interest rates, for ethical values. ABL encourages financing to alleviate
foreign exchange rates, equity prices, credit spreads and/ negative environmental impact on business thereby
or commodity prices. Treasury Division manages the market mitigating/avoiding environmental risks.

75
ANNUAL REPORT 2015

ALIGN LEARN

ANTICIPATE
DECIDE

INTERPRET CHALLENGE

Disclosure Under Basel-III


77
Disclosure Under Basel-III
Qualitative and Quantitative Disclosures
Under Pillar-III of Risk Based Capital Adequacy
as of 31st December 2015 (on Audited accounts)

These disclosures have been made in accordance with the Scope of application:
Bangladesh Bank BRPD Circular No-18 of 21 December 2014
Qualitative Disclosures
as to Guidelines on “Risk Based Capital Adequacy (Revised
Regulatory Capital Framework for banks in line with Basel a) The name of the top corporate entity in the group to
III)”. The purpose of Market discipline in the Revised Capital which this guideline applies is Agrani Bank Limited.
Adequacy Framework is to complement the minimum b) An outline of differences on the basis of consolidation
capital requirements and the supervisory review process. for accounting and regulatory purposes, with a brief
The aim of disclosure is to establish more transparent and description of the entities within the group:
more disciplined information so that stakeholders can assess 1) That is fully consolidated.
the position of the Bank regarding holding of assets and to
ABL’s Minimum Capital Requirement (MCR) has been
identify the risks relating to the assets and capital adequacy
arrived at both on Solo & Consolidated Basis.
to meet probable loss of assets.
2) The following items are given a deduction treatment.
a) Remaining value of Valuation Adjustment
Basel-III Guidelines are structured on the following as-
b) Benefit of Deferred Tax Assets
pects:
a) Minimum Capital Requirements to be maintained by a Following are the 6 subsidiary companies of Agrani Bank
bank against credit, market and operational risks Limited:
b) Raise the quality and level of capital to ensure banks are i) Agrani Equity & Investment Limited
better able to absorb losses on both a going concern
Agrani Bank Limited is the parent company of Agrani Equity
and a gone concern basis ; increase the risk coverage of & Investment Ltd. which is established to perform merchant
the capital framework banking activities in Bangladesh.
c) Introduce leverage ratio to serve as a backstop to the
Name : Agrani Equity &
risk-based capital measure
Investment Ltd.
d) Raise the standards for the supervisory review process
Date of incorporation : 16.03.2010
e) Framework of public disclosures on the positions
Date of Commencement : 16.03.2010
of a bank’s risk profiles, capital adequacy and risk
Authorized Capital : Tk. 500,00,00,000
management system
Paid up Capital : Tk. 400,00,00,000
The major highlights of the Bangladesh Banks regula- Ownership Interest in Capital : Tk. 400,00,00,000 (100%)
tions in this regard are-
ii) Agrani SME Financing Company Limited
a) To maintain Capital to Risk Weighted Assets Ratio (CRAR)
at a minimum of 10 percent Agrani Bank Limited is the parent company of Agrani SME
Financing Company Limited which is established to perform
b) To adopt the standardized approach for credit risk in re- retail banking activities in Bangladesh.
lation to implementation of Basel-III
Name : Agrani SME Financing
c) To adopt Standardized (Rule Based) Approach for mar-
Company Limited
ket risk
Date of Incorporation : 27.10.2010
d) To adopt Basic Indicator Approach and the Standardized
Approach for Operational risk Date of Commencement : 27.10.2010

e) To submit the returns to Bangladesh Bank on a quarterly Authorized Capital : Tk. 500,00,00,000
basis Paid up Capital : Tk. 100,00,00,000
Ownership Interest in Capital : Tk. 100,00,00,000 (100%)
Disclosure Framework:
The following detailed qualitative and quantitative iii) Agrani Exchange House Private Limited, Singapore
disclosures as on December 31, 2015 are furnished in line Agrani Bank Limited is the parent company of Agrani
with Bangladesh Bank’s Risk Based Capital Adequacy (RBCA) Exchange House Private Limited, Singapore which is
guidelines. established to perform activities as remittance house.

78
ANNUAL REPORT 2015

Name : Agrani Exchange House However, the investment in these subsidiaries has not been
Private Limited, Singapore deducted from the capital of ABL.
Date of Incorporation : 04.01.2002 c) Any restrictions or other major impediments on transfer of
Date of Commencement : 08.02.2002 funds or regulatory capital within the group.
Authorized Capital : SGD 10,00,000 Yes, there are.
Paid up Capital : SGD 10,00,000
d) Quantitative Disclosures
Ownership Interest in Capital : SGD 10,00,000 (100%)
Since the capital requirement of ABL has been arrived at
both on Solo & Consolidated basis as such capital require-
iv) Agrani Remittance House SDN, BHD, Malaysia ment of above mentioned subsidiaries have not been as-
sessed.
Agrani Bank Limited is the parent company of Agrani
Remittance House SDN, BHD, Malaysia which is established 2. Capital structure
to perform activities as remittance house.
Qualitative Disclosures
Name : Agrani Remittance House a) The composition of regulatory capital is different from ac-
SDN, BHD, Malaysia counting capital in line with Basel regime. As per the RBCA
Date of Incorporation : 18.08.2005 Guidelines each bank has to maintain CRAR on Consolidated
Date of Commencement : 13.01.2006 basis and Solo basis as per instructions given by Bangladesh
Bank from time to time. The minimum CRAR for the year
Authorized Capital : MYR 50,00,000
ended December 31, 2015 was 10%. The regulatory capital
Paid up Capital : MYR 30,00,000 under Basel-III is composed of (i) a. Common Equity Tier-1
Ownership Interest in Capital : MYR 30,00,000 (100%) Capital (CET-1), b. Additional T-1 Capital and (ii) Tier-2 capi-
tal. The capital structure of ABL consists of Tier-1 and Tier-2
capital.
v) Agrani Exchange Co. ( Australia) Pty. Limited
Common Equity Tier-1 Capital comprises of paid
Agrani Bank Limited is the parent company of Agrani
up Capital, Statutory Reserve, General Reserve and
Exchange Co. (Australia) Pty. Limited which is Established to
Retained Earnings.
perform activities as remittance house.
ABL has no such capital under the criteria of Additional
Name : Agrani Exchange Co.
Tier-I capital
(Australia) Pty. Limited
Date of incorporation : 19.12.2011 Tier-2 Capital consists of General Provision, Revaluation
Reserve for fixed assets, Securities and Equity instru-
Date of Commencement : 10.04.2014
ments.
Authorized Capital : AUD 50,000
Quantitative Disclosures
Paid up Capital : AUD 50,000
Crore Taka
Ownership Interest in Capital : AUD 50,000 (100%
Consoli-
owned by ABL Particulars Solo
dated
(A)
vi) Agrani Remittance House Canada, Inc.
Agrani Bank Limited is the parent company of Agrani Paid up capital 2072.29 2072.29
Remittance House Canada, Inc. which is established to per- Non-repayable share premium account 0.00 0.00
form activities as remittance house.
Statutory reserve 585.93 589.21
Name : Agrani Remittance House
Canada, Inc. General reserve 53.65 59.12
Date of Incorporation : 11.07.2012 Retained earnings 93.36 75.80
Date of Commencement : 26.05.2014 Minority interest in subsidiaries 0.00 0.00
Authorized Capital : CAD 100
Dividend equalization account 0.00 0.00
Paid up Capital : CAD 100
Ownership Interest in Capital : CAD 1,00 (100% Others (if any item approved by BB) 41.72 41.72
owned by ABL Sub-Total(Common Equity Tier-1 Capital) 2846.95 2838.14
3) That is neither Solo nor deducted (e.g. where the invest- Deductions from Tier-1 capital 1100.47 1100.47
ment is risk- weighted).The accounts of the ABL’s above
Total Common EquityTier-I Capital (A) 1746.48 1737.67
mentioned subsidiary companies have been consolidated.

79
Consoli- Quantitative Disclosures
Particulars Solo
dated
Consoli-
(B) Particulars Solo
date
Amount of Tier-2 Capital 906.28 898.08
b) Capital requirement for Credit Risk 2091.94 2026.32
Deductions from Tier-2 capital. 128.96 128.96
c) Capital requirement for Market Risk 251.26 329.82
Tier-II Capital (B) 777.32 769.12
Total regulatory capital (A+B) 2523.80 2506.79 d) Capital requirement for Operational Risk 303.67 312.93
e) Total and Tier- 1 capital ratio 1.00 : .69 1.00 : .69
3. Capital Adequacy
• For the consolidated group and Yes
Qualitative Disclosures • For stand alone Yes
a) With regard to regulatory capital computation approach-
es (minimum capital requirement) the bank is following the 4. Credit Risk
approach as prescribed by Bangladesh Bank. Below are risk Qualitative Disclosures
a) Credit risk is the potential that a bank’s borrower or coun-
wise capital computation approaches that the Bank is cur-
terparty fails to meet its obligations in accordance with the
rently applying:
agreed terms. Bank is exposed to credit risk from its dealing
• Credit Risk : Standardized Approach(SA) with or lending to corporate, individuals, and other banks
or financial institutions. As regards capital charge for Credit
• Market Risk :Standardized Approach(SA) Risk, all assets in Banking Book have been risk-weighted
• Operational Risk: Basic Indicator Approach (BIA) strictly based on pre-specified weight as determined by
Bangladesh Bank as per RBCA guidelines. However, the
Capital of the Bank bank has conducted proper mapping with the grading of
In parallel to business growth, the bank effectively manages Bangladesh Bank for those exposures or claims graded by
External Credit Assessment Institution (ECAI).
its capital to meet regulatory requirement considering the
risk profile. Below are few highlights: • Definitions of past due and impaired (for accounting
purposes).
• Currently Bangladesh Bank prescribed Minimum Capital Definition of Past due and impaired credit: The bank follows
to Risk Weighted Assets Ratio (CRAR) is 10% whereas as Bangladesh Bank circulars and guidelines related to classifi-
on December, 2015 the CRAR of the Bank was 9.54% cation and provisioning to define past due and impairment.
• During the same period Minimum Capital Requirement Following table summarizes the objective criteria for loan
(MCR) of the bank was BDT. 2646.87 crore and Eligible classification and provisioning as stipulated by the central
Capital was BDT. 2523.80 crore bank vide BRPD circular No. 14 dated 23 September 2012:

Loan classification

Type of SMA Sub standard Doubtful Bad & Loss


credit facility
Overdue Provi- Overdue Provi- Overdue Provi- Overdue Provi-
Period sion(%) Period sion(%) Period sion(%) Period sion(%)

3 months 3 months
60 days or or more but or more but 9 months
Continuous Loan 5% 20% 50% 100%
more less than 6 less than 9 or more
months months

3 months 3 months
60 days or or more but or more but 9 months
Demand Loan 5% 20% 50% 100%
more less than 6 less than 9 or more
months months

3 months 3 months
Fixed Term Loan 60 days or or more but or more but 9 months
5% 20% 50% 100%
More than Tk.10 lac more less than 6 less than 9 or more
months months

80
ANNUAL REPORT 2015

Loan classification

Type of SMA Sub standard Doubtful Bad & Loss


credit facility
Overdue Provi- Overdue Provi- Overdue Provi- Overdue Provi-
Period sion(%) Period sion(%) Period sion(%) Period sion(%)

3 months 3 months
Fixed Term Loan 60 days or or more but or more but 9 months
5% 20% 50% 100%
up to Tk.10 lac more less than 6 less than 9 or more
months months
3 months 3 months
Short Term
60 days or or more but or more but 9 months
Agriculture & Micro 5% 20% 50% 100%
more less than 6 less than 9 or more
Credit
months months

• Description of approaches followed for specific and credit exposures and to maintain credit risk profile of the
general allowances and statistical methods. bank within a tolerable range.
• The Bank has been following Standardized Approach
for assessing the requirement of capital charge against Quantitative Disclosures
Credit Risk. The methodology used for this approach is b) Total (gross) Credit Risk Exposure broken down by major
to rate the exposures by the External Credit Assessment types of credit exposure is appeared below:
Institution (ECAI). Crore Taka
• Discussion on the Bank’s credit risk management policy:
Particulars Solo Consolidated
• The Bank has a well structured delegation of credit
approved authority for ensuring good governance and Funded 46,342.15 45,747.34
better control in credit approval system.
Considering the key elements of credit risk, the bank has Non Funded 1443.95 1443.95
established Credit Risk Management framework in line with Total 47,786.10 47,191.29
the Bank’s Credit Risk Management (CRM) policy guideline
and the Credit Risk Grading (CRG) system. This framework
defines CRM structure, role, responsibilities and the processes c) Geographical distribution of exposures, broken down to
to identify, quantify, and manage risk under the given policy. significant areas by major types of credit exposure.
The CRM policy is reviewed from time to time to adopt new
techniques, policies for measurement, management and Balance Sheet Exposure
mitigation of risks in line with the socioeconomic scenario Crore Taka
and investment environment of the country.
Region Urban Rural Total
ABL’s credit policy is based on the customers’ need for their
business, earning capacity of borrower, the repayment Dhaka Region 14464.20 476.48 14940.68
capability of the business, and the value of collateral. Chittagong Region 2272.84 43.33 2316.17
The Credit policy of the bank focuses on the economic goal Khulna Region 1204.75 380.85 1585.60
of the country and policies adopted by the Government.
It strives towards the materialization of the Government Rajshahi Region 981.98 405.70 1387.68
policies leading to overall economic development of the
Barishal Region 574.35 275.65 850.00
country.
Sylhet Region 233.30 135.95 369.25
Bank’s Loan Review Policy is in place to address the problem
loans and to initiate appropriate action to protect the Bank’s Rangpur Region 669.29 306.08 975.37
interest on a timely basis.
Mymensing Region 504.96 271.90 776.86
ABL strictly adheres to the regulatory policies; rules etc. as
Comilla Region 556.15 182.53 738.68
regard to credit management and are in compliance with
regulatory requirements as stipulated by Bangladesh Bank Faridpur Region 448.11 91.78 539.89
from time to time. The objective of credit risk management is
to minimize the different dimension of risks associated with Sub Total 21909.93 2570.25 24480.18

81
Off-Balance Sheet Exposure e) Residual Contractual maturity breakdown of the
whole portfolio by major types of credit exposure.
Region Taka in crore
Taka in
Dhaka Region 7408.73 crore
Chittagong Region 891.92
Repayable on Demand 2973.13
Khulna Region 442.43
Not more than 3 months 3127.14
Rajshahi Region 86.14
More than 3 month but not more than 1 year 7812.01
Barisal Region 31.92
More than 1 year but not more than 5 years 3989.59
Sylhet Region 14.02
Rangpur Region 99.44 More than 5 years 6578.31

Mymensing Region 6.29 Total 24480.18

Comilla Region 19.20


f) By major industry or counterparty type:
Faridpur Region 6.80 • Amount of impaired loans and if available, past due
Total 9,006.89 loans, provided separately: TK 3,336.62 crore
• Specific Provisions : TK. 2,244.52 crore
d) Industry or counterparty type distribution of • General provisions : TK. 450.25
exposures, broken down by major types of credit
• Charges for specific allowances and charge-offs during
exposure.
the period : Not Applicable

Funded Taka in crore g) Gross Non Performing Assets (NPAs): TK. 4,640.41
crore.
Agriculture & Fishery 1187.46
Non Performing Assets (NPAs) to Outstanding Loans &
Jute & Jute Goods 979.99 advances: 0.19: 1.00
Transport, Storage & Communication 345 .66
Ship Breaking 119.35 Movement of Non Performing
Taka in crore
Assets (NPAs):
Textile & Readymade Garments 2035.92
Opening balance 3965.95
Food & Allied Industry 280.00
Construction & Engineering 106.91 Additions during the year 1767.25

Pharmaceuticals & Chemicals 151.79 Reductions during the year (1092.79)

Leather Sector 383.87 Closing balance 4640.41


Power Sector 904.68
Professional & Services 160.51 Taka in
Movement of Specific Provisions for NPAs
crore
Housing Services 335.82
Wholesale/ Retail Trading 2730.01 Opening balance 1930.01

Personal (Staff & other personal Loan) 2908.47 Provisions made during the period 494.87

Bank & other Non-Financial Institution - Recoveries of amount previously Written-off 40.13

Electronics & Automobile - Provision add back during the year (73.29)

Cement & Ceramic - Transfer to Profit & Loss A/C -

Others 11849.74 Less: Written-off (147.19)


Total 24480.18 Closing balance 2244.52

82
ANNUAL REPORT 2015

5. Equities: Disclosures for Banking Book Positions subject to any supervisory provisions regarding regulatory
capital requirements. TK. 126.27 crore (Investment in
Qualitative Disclosures unquoted share Tk. 1010.12 Crore × 1.25 Risk weight × 10%
a) The general qualitative disclosure requirement with Capital requirement) has been assessed against unquoted
respect to equity risk, including: equity holdings and shown in MCR.
• Differentiation between holdings on which capital gains
6. Interest Rate Risk in the Banking Book (IRRBB)
are expected and those taken under other objectives
including for relationship and strategic reasons; Qualitative Disclosures
ABL has considerable investment in equity shares of
a) The general qualitative disclosure requirement including
various companies and mutual funds and has active
the nature of IRRBB and key assumptions, including loan
participation in the secondary market. Board, Executive
pre-payments and behavior of non-maturity deposits, and
and Investment committee oversee the management
frequency of IRRBB measurement.
of investment portfolio and its associated risk to which
bank may be exposed. In the investment process ABL Interest rate risk in the banking book arises from mismatches
strictly follows the internal policies and procedures between the future yield of assets and their funding costs.
put into place in this respect. ABL also holds unquoted Interest rate risk is the potential that the value of the on-
equities intent of which is not trading and the same are balance sheet and the off-balance sheet positions of the bank
shown as banking book asset in the balance sheet. As would be negatively affected with the change in the interest
these securities are not quoted or traded in the bourses rates. Changes in interest rates also affect the underlying
value of the bank assets, liabilities and off-balance sheet
they are shown in the balance sheet at cost price and
instruments because the economic value of future cash
no revaluation reserve has been created against these
flows changes when interest rates changes. Assets Liabilities
equities.
committee (ALCO) monitors the interest rate movement on
The equity markets are traditionally volatile with a high a regular basis.
risk, high- returns profile. In an uncertain market place
The Bank uses a simple Sensitivity Analysis as well as
like the present, investors cannot afford to place all
Duration Gap Analysis to determine its vulnerability against
hope in only one product. Therefore, it is very important
the adverse movement of market variables.
to protect the total investment value by means of
diversification. For change in interest rates, currently, ABL is more risk
sensible for its Assets comparable to its Liabilities.
• Equity holdings under the banking book are recorded in
the books of accounts at cost price. The Bank is on a continuous process of re-structuring in its
assets and liabilities to make a balance between them and to
Quantitative Disclosures
bring the situation back in its favor for any change in interest
b) Value of investments disclosed in the balance sheet as well rate.
as the fair value of those investments; for quoted securities, a Quantitative Disclosures
comparison to publicly quoted share values where the share
b) The increase (decline) in earnings or economic value
price is materially different from fair value.
(or relevant measure used by management) for upward or
Provisions are kept against publicly quoted shares where downward rate shocks according to management methods
the share price is materially different from fair value which is for measuring IRRBB, broken down by currency (as relevant).
negative. However, no unrealized gain from publicly quoted
The Bank has been exercising ‘Stress Testing’ based on
share is accounted for. In case of publicly quoted shares only
guidelines published by Bangladesh Bank to determine the
realized gain is accounted for.
following:
c) The cumulative realized gains (losses) arising from sales 1) Impact on earnings and
and liquidations in the reporting period. 2) Impact on Capital requirements.

d) • Total unrealized gains (losses) 7. Market Risk


• Total latent revaluation gains (losses) Qualitative Disclosures
• Any amounts of the above included in Tier-2 d) Views of the Board of Directors (BOD) on trading/
capital. investment activities.
e) Capital requirements broken down by appropriate equity Market Risk is the risk that the fair value of future cash flows
groupings, consistent with the banks methodology, as well as of financial instruments will fluctuate due to changes in
the aggregate amounts and the type of equity investments different market variables, namely

83
i) Interest rate movements; ii) Currency -foreign exchange Performance gap of executives and staff
rate movements; iii) Equity-Stock price movements; iv) Performance goals are most often attained by executives
Commodity-Commodity price movements and staff with a few exception .
The BOD of the Bank views the ‘Market Risk’ as the risk to the
Potential external events
bank’s earnings and capital due to changes in the market
ABL, as a state owned commercial bank, is exposed to
level of interest rates of securities, foreign exchange and
‘directed loans’ as the major external event.
equities as well as the volatilities of those changes. Market
Risk Management provides a comprehensive and dynamic Policies and Processes for Mitigating Operational Risk
framework for measuring, monitoring and managing i) The ABL manages this risk through a chain based processes
interest rate, foreign exchange as well as equity, commodity which are documented, authorized and independent.
price risk of a bank that needs to be closely integrated with Transactions, events etc. that are being taken place at the
the bank’s business strategy. operational level monitored and reported. ii) If deviations
Methods used to measure Market Risk are found, corrective actions are taken to bring the deviation
back into the track. iii) An MIS is in place and is used to
The Bank uses the standardized (Rule Based) approach to identify record and assess any kind of operational risk and
calculate market risk for trading book exposures to generate appropriate regular management reporting. iv)
Since inefficiency is one of the root causes of operational
Market Risk Management System
risk, the Bank trains its operational staff on regular basis
Decision taken in the monthly meeting of Risk Management to make them more effective and efficient for mitigating
and ALCOM is an important tool for managing market risk. operational risks. Operational Risk Management Framework
ALCOM is in place in the bank to administer the system. has been designed to provide a sound and well-controlled
operational environment and thereby mitigate the degree of
Policies and Processes for Mitigating Market Risk operational risk.
The only mitigation tool that the Bank uses is the ‘Marking to
Approach for calculating capital charge for Operational
Market’ for mitigating market risk. Risk
Besides, a set risk/loss tolerance level is in place to mitigate The Bank uses the Basic Indicator Approach to calculate the
market risk. capital requirement of its operational risk.

Quantitative Disclosures Quantitative Disclosures


(b) Capital Requirements for Operational Risk
(b) The capital requirements for Taka In crore
Taka in crore
Interest rate risk 95.50
Particulars Solo Consolidated
Equity risk 98.22
Capital
303.67 312.93
Foreign exchange risk 57.54 requirements
Commodity risk 0.00
9. Liquidity Ratio
8. Operational Risk (a) Views of BOD on system to reduce Liquidity Risk
Qualitative Disclosures The Board of ABL always strives to maintain adequate
(a) Views of BOD on system to reduce Operational Risk: liquidity to meet up Bank’s overall funding need for the
huge retail depositors, borrowers’ requirements as well as
The BOD of the bank views risk as Operational Risk those maintain regulatory requirements comfortably. The Treasury
arises from inadequate or failed internal processes, people Division places the liquidity position of the Bank before the
and systems, or from external causes, whether deliberate, board in every Board of Directors meeting. The board takes
accidental or natural-inherent in all of the Bank’s activities. investment decision on the basis of liquidity position.
The policy for operational risks management includes
(b) Methods used to measure Liquidity Risk
internal control and compliance risk approved by the Board,
i) Computing loanable fund
taking into account relevant guidelines of Bangladesh Bank.
The audit committee of the Board directly oversees the ii) Preparing Structural Liquidity Profile (SLP)
internal control and Compliance activities with the overall iii) Liquidity Coverage Ratio (LCR)
object of mitigating all operational risks. iv) Calculation of Net Stable Funding Ratio (NSFR)

84
ANNUAL REPORT 2015

(c) Liquidity Risk Management System the banking system. The leverage ratio is calibrated to act as
a credible supplementary measure to the risk based capital
i) CDR maximum up to 70%
requirements.
ii) Investment Deposit Ratio within 45%
iii) MTF at 30% to 45% Qualitative Disclosures
iv) Wholesale Borrowing up to maximum Taka 3,000.00 (a) Views of BOD on system to reduce excessive leverage
crore The Board of Directors of ABL primarily views on the growth
v) MCO should not exceed 20% of On and Off balance sheet exposures commensurate with
vi) Prior intimation for withdrawal of deposit its expected capital growth so that the excessive leverage
vii) Maturity profile of securities, term deposit and advance. is reduced. Within the On-balance components, again, the
viii) Preparing projected cash flow. Board emphasizes on the growth of the prime component i.e.
the loans and advances and maintaining good asset quality
(d) Policies and processes for mitigating Liquidity Risk so as to maximize the revenue as well as the capacity to
Action Plan/ Mitigating Policy generate capital internally (in the form of retained earnings)
Short Term to trade-off the excessive leverage supposed to be caused
by asset growth.
i) Request to central bank for Repo/special Repo
ii) Sell of Govt. Securities (b) Policies and processes for managing excessive on and
iii) Avail unused credit facilities from banks /FI’s off- balance sheet leverage
iv) Restriction in purchase of T. bills, bonds/loan The bank reviews its leverage position as per the Guidelines
v) Collecting short Term Deposit on Risk Based Capital Adequacy (revised regulatory capital
framework for banks in line with Basel III). In addition, the
vi) Impose margin for L/C opening
Bank has Risk Appetite as per Credit Risk Management
Mid Term Policy. Bank also employs Annual Budget Plan and Capital
Growth Plan for managing excessive on and off balance
i) Increase deposit & advance rates
sheet leverage.
ii) Recovery of classified loan
iii) Introducing attractive deposit products (c) Approach for calculating exposure
iv) Strengthen MIS. Leverage ratio is calculated by dividing Tier 1 capital with
v) Identify alternative funding sources Total exposure. The exposure measure for the leverage ratio
will generally follow the accounting measure of exposure. In
Quantitative Disclosures order to measure the exposure consistently with financial
Figure in Crore Taka accounts, the following will be applied by the bank:
Particulars December, 2015 i. On balance sheet, non-derivative exposures will be net
of specific provisions and valuation adjustments (e.g.
Liquidity Coverage
173.18% surplus/ deficit on Available for sale (AFS)/ Held-for-
Ratio (in %)
trading (HFT) positions).
Net Stable Funding
111.34% ii. Physical or financial collateral, guarantee or credit risk
Ratio (in %)
mitigation purchased is not allowed to reduce on-
Stock of High quality balance sheet exposure.
19206.91
liquid assets
iii. Netting of loans and deposits is not allowed.
Total net cash outflows
over the next 30 11090.72 Quantitative Disclosures
calendar days Figure in Crore Taka
Available amount of Particulars December, 2015
45827.31
stable funding
Leverage Ratio (in %) 3.18%
Required amount of
41158.45
stable funding On balance sheet exposure 54290.62
Off balance sheet exposure 1721.79
10. Leverage ratio
Total deductions from On and Off
The leverage ratio was introduced into the Basel III framework 1100.47
Balance sheet exposures
to supplement risk-based capital requirements to avoid
Total exposure 54911.94
building-up excessive on- and off-balance sheet leverage in

85
11. Remuneration job allocated to them. However, ABL follows a uniform salary
(a) Qualitative Disclosures structure for all employee declared by The Government of
(i) Name, composition and mandate of the main body the People’s Republic of Bangladesh.
overseeing remuneration. (c) Qualitative Disclosures
At the management level, primarily the HR Planning, (i) An overview of the key risks that the bank takes into
Deployment and Opearations Division oversees the account when implementing remuneration measures.
‘remuneration’ in line with its HR management strategy/ Agrani Bank Limited follows a uniform salary structure
policy under direct supervision and guidance of for all employee declared by the Government of the
Management Committee (MANCOM) of the Bank. People’s Republic of Bangladesh
(ii) External consultants whose advice has been sought, the (ii) An overview of the nature and type of the key measures
body by which they were commissioned, and in what used to take account of these risks; including risks
areas of the remuneration process. difficult to measure (values need not be disclosed).
Agrani Bank Limited follows National Pay Scale. No Not Applicable
external advice has been sought for remuneration (iii) A discussion of the ways in which these measures affect
process. remuneration.
(iii) A description of the scope of the bank’s remuneration Not Applicable
policy (e.g. by regions, business lines), including the
(iv) A discussion of how the nature and type of these
extent to which it is applicable to foreign subsidiaries
measures has changed over the past year and reasons
and branches.
for the change, as well as the impact of changes on
The remuneration policy of Agrani Bank Limited remuneration
in Bangladesh follows National Pay Scale. Foreign
Not Applicable
subsidiaries and branches also follow National Pay Scale
and the policy announced by the Ministry of Foreign (d) Qualitative Disclosures
Affairs of the People’s Republic of Bangladesh. (i) An overview of main performance metrics for bank, top-
(iv) A description of the types of employees considered as level business lines and individuals.
material risk takers and as senior managers, including Individual employees are given a yearly target of
the number of employees in each group. Deposit Mobilization, Classified Loan recovery, fees &
All Branch Managers, Zonal Heads, Circle Heads and Senior commission earnings, foreign remittance etc.
Management at Head Office (ii) A discussion of how amounts of individual remuneration
are linked to bank-wise and individual performance.
(b) Qualitative Disclosures
Remuneration is not directly linked to individual
(i) An overview of the key features and objectives of
performance as Agrani Bank Limited follows National
remuneration policy.
Pay Scale declared by The Government of the People’s
Agrani Bank Limited follows National Pay Scale/2015 Republic of Bangladesh.
declared by The Government of the People’s Republic of
(iii) A discussion of the measures the Bank will in general
Bangladesh
implement to adjust remuneration in the event that
(ii) Whether the remuneration committees reviewed the performance metrics are weak
firm’s remuneration policy during the past year, and if so, Not Applicable.
an overview of any changes that were made.
(e) Qualitative Disclosures
Agrani Bank limited follows National Pay Scale/2009
(i) A discussion of the Bank’s policy on deferral and vesting
from 1st July 2009 to 30 June2015. The Government of
of variable remuneration and, if the fraction of variable
the Peoples Republic of Bangladesh declared National
remuneration that is deferred differs across employees
Pay Scale/2015 on 15/12/2015 effective from 1st July,
or groups of employees, a description of the factors that
2015 has also been taken as remuneration policy in
determine the fraction and their relative importance.
Agrani Bank limited.
The remuneration framework of the national Pay
(iii) A discussion of how the Bank ensures that risk and
scale describes short term and long term benefits.
compliance employees are remunerated independently
Short term benefits include salary, festival bonus
of the businesses they oversee.
and incentive bonus as variable payments. Long
The risk and compliance employees are carrying out the term benefits include Gratuity, Provident Fund,
activities independently as per specific terms of references, Superannuation Fund and Leave encashment etc.

86
ANNUAL REPORT 2015

(ii) A discussion of the Bank’s policy and criteria for adjusting during the financial year.
deferred remuneration before vesting and (if permitted
No severance payments made during the financial
by national law) after vesting through claw back
year.
arrangements.
(i) Qualitative Disclosure
Not Applicable.
Total amount of outstanding deferred remuneration, split
(f) Qualitative Disclosures into cash, shares and share- linked instruments and other
An overview of the forms of variable remuneration offered forms. Total amount of deferred remuneration paid out in
(i.e. cash, shares and share-linked instruments and other the financial year.
forms. A discussion of the use of the different forms of
Agrani Bank Limited follows Government remuneration
variable remuneration and, if the mix of different forms of
Policy. No deferred remuneration paid during the
variable remuneration differs across employees or groups of
financial year.
employees), a description the factors that determine the mix
and their relative importance. (j) Qualitative Disclosure
Agrani Bank Limited follows National Pay Scale/2015 Breakdown of amount of remuneration awards for the
declared by The Government of the People’s Republic of financial year to show:
Bangladesh.
Agrani Bank Limited follows Government remuneration
(g) Number of meetings held by the main body overseeing Policy. No remuneration awards paid during the financial
remuneration during the financial year and remuneration year.
paid to its member.
- Fixed and variable.
There were 18 (Eighteen) meetings of the Management
Not Applicable
Committee (MANCOM) held during the year 2015. All the
members of MANCOM are from the core banking area/ - Deferred and non-deferred.
operation of the Bank. No additional remuneration was Not Applicable.
paid to the members of the Management Committee for - Different forms used (cash, shares and share linked
attending the MANCOM meeting. instruments, other forms).
(h) Qualitative Disclosure Not Applicable.

(i) Number of employees having received a variable (k) Quantitative Disclosures


remuneration award during the financial year. Quantitative information about employees’ exposure
Agrani Bank Limited follows Government to implicit (e.g. fluctuations in the value of shares or
remuneration Policy. No variable remuneration policy performance units) and explicit adjustments (e.g. claw backs
exists in Agrani Bank Limited. or similar reversals or downward revaluations of awards) of
(ii) Number and total amount of guaranteed bonuses deferred remuneration and retained remuneration:
awarded during the financial year.
Total amount of outstanding
Performance bonuses/Incentives given: 13414
deferred remuneration and retained
employees (as on 31-12-2014) Number of total Not applicable
remuneration exposed to ex post
guaranteed bonus (festival bonus): 02 (Two).Total
explicit and/or implicit adjustments.
amount of guaranteed bonus (festival bonus): BDT.
37.35 Crore Total amount of reductions during the
(iii) Number and total amount of sign- on awards made financial year due to ex post explicit Not applicable
during the financial year. adjustments.

No sign-on award made during the financial year. Total amount of reductions during the
financial year due to ex post implicit Not applicable
(iv) Number and total amount of severance payments made adjustments

87
ANNUAL REPORT 2015

Report of the
Board Audit Committee
and
Board Risk Management Committee
89
Report of the Board Audit Committee
The Audit Committee of the Board was duly formed by 3. Considers whether internal control strategies
the Board of Directors of the Bank in compliance with recommended by internal and external auditors have
Bangladesh Bank guidelines. The audit committee assists been implemented by the management.
the board in fulfilling its oversight responsibilities. The 4. Considers reports relating to fraud, forgery, deficiencies
committee reviews the financial reporting process, the in internal control or other similar issues detected by
system of internal control and management of financial risks, internal and external auditors and inspectors of the
the audit process, and the bank’s process for monitoring regulatory authority and place it before the board after
compliance with laws and regulations and its own code of reviewing whether necessary corrective measures have
business conduct. been taken by the management.

Organizational Structure Financial Reporting


The organizational structure of the committee has been 1. Audit committee checks whether the financial
approved by the board of directors following the BRPD statements reflect the complete and concrete
Circular no 11 dated 27 October 2013. information and determine whether the statements are
i. Members of the committee has been nominated by the prepared according to existing rules & regulations and
board of directors from the directors standards enforced in the country and as per relevant
ii. The audit committee comprises of 04 (four) members. prescribed accounting standards set by Bangladesh
iii. Audit committee comprises of directors who are not Bank.
executive committee members 2. Discusses with management and the external auditors
iv. Members have been appointed for a 03 (three) year term to review the financial statements before its finalization.
of office; Internal Audit
v. Company secretary of the bank is the secretary of the
1. Audit committee monitors whether internal audit is
audit committee.
working independently from the management.
Members of Audit Committee 2. Reviews the activities of the internal audit and the
organizational structure and ensures that no unjustified
1. Arastoo Khan
restriction or limitation hinders the internal audit
2. Engineer Md. Abdus Sabur process.
3. Advocate Balaram Podder 3. Examines the efficiency and effectiveness of internal
4. Md. Altaf Hossain Molla audit function
4. Examines whether the findings and recommendations
Qualifications of the Member
made by the internal auditors are duly considered by the
i. Integrity, dedication, and opportunity to spare time in management or not.
the functions of committee has been considered while
nominating a director to the committee. External Audit
ii. Each member is capable of making valuable and 1. Reviews the performance of the external auditors and
effective contributions in functioning of the committee. their audit reports.
iii. To perform his or her role effectively each committee 2. Examines whether the findings and recommendations
member has adequate understanding of the detailed made by the external auditors are duly considered by
responsibilities of the committee membership as well as the management or not.
the bank’s business, operations and its risks. 3. Makes recommendations to the board regarding the
iv. Professionally experienced persons in banking/financial appointment of the external auditors.
institutions specially having educational qualification in Compliance with existing laws and Regulations
Finance, Banking, Management, Economics, Accounting Reviews whether the laws and regulations framed by the
has got preference in forming the committee. regulatory authorities (central bank and other bodies)
and internal regulations approved by the board are being
Roles and Responsibilities of the Audit Committee complied with.
Internal Control
1. Evaluates whether management is setting the Other Responsibilities
appropriate compliance culture by communicating the 1. Submits compliance report to the board on quarterly
importance of internal control and the management basis on regularization of the omissions, fraud and
of risk and ensuring that all employees have clear forgeries and other irregularities detected by the internal
understanding of their roles and responsibilities. and external auditors and inspectors of regulatory
2. Reviews management’s actions in building authorities.
computerization of the bank and its applications and 2. External and internal auditors submits their related
bank’s Management Information System (MIS). assessment report, if the committee solicit.

90
ANNUAL REPORT 2015

3. Performs other oversight functions as desired by the 4. The committee gave instructions on ensuring stern
Board of Directors and evaluates the committee’s own compliance by monitoring & controlling offices with the
performance on a regular basis. directions of Head Office.
Meetings 5. The committee recommended all-out effort to reduce
The audit committee held 16 meetings in 2015. To ensure classified loans.
active participation and contribution by the members, 6. The committee advised to place monthly report on
Company Affairs & Board Division distributes detailed unreconciled inter-branch entries.
memorandums to committee members well in advance
7. The committee instructed to train 200 senior officers on
before each meeting and invites Managing Director & CEO,
Head of internal Control & Compliance and other officials International trade & foreign exchange.
concerned in the audit committee meeting. All decisions/
Self Assessment of Anti-fraud Internal Control
observations of the committee are noted in minutes.
For identifying the strengths and weaknesses of internal
Decisions given by the committee during the year control and compliances concerning the major area
1. To implement the Internal Compliance Policy in the of operations of banks namely general banking, credit
light of the directives given by the Off-site Supervision portfolio, information and communication technology,
of Bangladesh Bank, the committee observed the steps Bangladesh Bank (BB) has introduced a questionnaire based
taken by the management on different anomalies as
checklist for Self Assessment of Anti-fraud Internal Control
stated in the Internal Audit Report and gave necessary
decisions and recommendations. in 2012. Under reporting framework, banks should submit
the filled-in questionnaire with relevant supporting papers
2. The committee observed progress of overall activities
to Bangladesh Bank on quarterly basis.
of five divisions of Internal Control and Compliance on
quarterly basis.
ABL has been submitting this statement to BB on quarterly
3. The committee approved three days training program basis for ensuring the regulatory compliance and taking
on ICC Risk Management through effective risk based
measures for improvement of the bank’s internal control and
internal audit, monitoring, regulatory compliance,
compliance system, where necessary.
corporate governance & participation of the board audit
committee.
The summary of Self Assessment of Anti-fraud Internal
4. The committee observed compliance to inspection Control of ABL has been given in the following box:
report by Bangladesh Bank in head office of the
bank as on 31-12-2014, compliance to single date
No. of items are 53
comprehensive inspection report of ten branches and
compliance to inspection report on self classification of Complied
Period Non
loans & advances of the rest 911 branches and instructed (fully/ Total
complied
partial)
to update the reports and place these in the board
meeting for final approval. No % No % No %

5. The committee observed the progress of implementation Q1 (Jan- Mar)-2015 76 95% 2 5 78 100
status of Audit Plan 2014 and approved the “Annual
Q2 (Apr- Jun)-2015 76 95% 2 5 78 100
Audit Plan-2015”.
6. The committee approved Internal Control & Compliance Q3 (Jul- Sep)-2015 75 94% 3 6 78 100
Manual.
Q4 (Oct- Dec)-2015 74 93% 4 7 78 100
7. The committee finalized the Financial Statement of the
Bank as on 31-12-2015 for approval of the Board.
8. To implement the decisions taken in the 18th meeting of Acknowledgements
10th parliamentary standing committee on Government
The Audit Committee expresses its sincere thanks to the
Accounts held on 18-01-2015, the audit committee gave
necessary decisions to that end. respected members of the Board, Management and the
Auditors for their continuous support.
Instructions given by the committee during the year

1. The committee instructed to settle objections of serious For and on behlf of the Audit Committee
nature.
2. The committee instructed the bank management to be
cautious so that serious anomalies do not take place in
future. Arastoo Khan
3. The committee recommended quick disposal of pending Chairman
objections and income tax case of the Bank. Board Audit Committee

91
Report of the Board Risk Management Committee
To play an effective role in mitigating impending risks To oversee the risk management of the Bank, the Board has
arising out of strategies and policies formulated by the Board formed a Risk Management Committee in its 335th meeting
and to carry out the responsibilities efficiently, Bangladesh held in 21-09-2013. The committee plays effective role in
Bank vide their BRPD Circular No.11, dated 27-10-13 advised minimizing probable and emerging risks in implementing
to form a committee of the Board of Directors named ‘’Risk the policies and strategies formulated by bank’s Board of
Management Committee’’ in addition to the existing ‘‘Audit Directors and perform responsibility of the Board of Directors
Committee’’ and ‘’Executive Committee’’ . This directive has in this regard.
been issued in line with Bank Companies Act (Amendment) Risk Management Committee Meeting
2013. The committee is entrusted with supervision The Committee held three meetings in 2015. The number of
responsibility for all existing and potential risk in all area of meetings attended by the Committee members is shown in
banking institution. the table given below:

Status in the Position in the Number of meetings


Sl.No. Name of Members
Committee Bank attended
1 Arastoo Khan Chairman Director 3
2 Engineer Md. Abdus Subur Member Director 3
3 Prof. Dr.Md.Abdur Rouf Sardar Member Director 3
4 Shameem Ahsan Member Director On leave

Broad Objectives of the Committee • Report on CRAR, MCR, Stress Test and ICAAP
• To review, guide, manage and reduce various risks • Development of checklist based on the risk covered
resulting from implementation of strategies and action under SRP
plan approved by the board. • Adoption of ICAAP policy
• Ensure that proper steps are taken to identify, measure • Observation report on Comprehensive Risk Management
and reduce risk by Management. Rating by Bangladesh Bank
• Approval of amended format for sanction/renewal of (i)
• To review capital adequacy of the Bank against all risks.
working capital loan (CC Hypo & pledge) (ii) project loan/
• To review provision maintained against all risks. BMRE loan
Roles and Responsibilities of the Committee • Report on handing over of need based credit procedures
to Agrani Bank Limited by 5 nominated branches for
The Committee was entrusted to supervise and review risk
extending credit to maize cultivator in char and river
management process covering the following:
eroded areas and migration of those branches into green
• Risk identification and development of control strategy. branches.
• Adoption of an organizational structure highlighting risk • Detail discussion and chalking out of plan by reviewing
across the institution. terms of reference, duties and responsibilities of Risk
• Review and approval of Risk Management policy. Management Committee as instructed by Bangladesh
Bank
• Supervision of execution of overall risk management
policy. Acknowledgement
• Examine and approve the preservation of data and The Risk Management Committee expresses its sincere
reporting implemented by the management and ensure gratitude to the members of the Board, Management Team
implementation of the same and Risk Management Division for their continuous support
to discharge its due roles. Committee expects more vigilance,
• Any other task as assigned by the Board of Directors and proactive risk identification and risk management initiatives
Central Bank. from the concerned divisions in the banking operations of
• Miscellaneous (Quarterly reporting of decision and Agrani Bank Limited.
recommendation to the Board, ensuring compliance of
regulatory instructions).
During the year, the Committee reviewed and focused on
the following areas
Arastoo Khan
• Revision of Core Risk Guidelines. Chairman
• Status report on implementation of BASEL-III Board Risk Management Committee

92
ANNUAL REPORT 2015

BANK

Internal Control and Compliance


93
Internal Control and Compliance
Internal Control and Compliance (ICC) Banking operations involve both inherent and acquired risks
The entire human society’s history is marked by the exposure in the pursuit of value creation. To avoid the complexities
to risks of all kinds and the efforts undergone by humans and risk arises out of those activities, some sort of internal
to deal with the risks. From ancient time, at the emergence corrective measures must be there to control.
of species, the human practiced risk management in order
to survive. The practice of survival instincts lead to the The issues of effective internal control systems, corporate
avoidance of risks threatening to extinct the human kind. governance, transparency and accountability, and
The very existence of human kind today is the proof of the regulatory compliance have become prime need for high
success of applying risk management strategies by our levels of performance.
ancestors. Risks are uncertainties. In the banking universe,
Thus internal control is now being termed as an integral
there are a large number of risks. As the goal of any state-
owned company, the main goal of bank’s management is part of the daily activities of a bank so that the Bank’s
to serve the nation and maximize the shareholders’ value. management and stakeholders can confidently, assure that
Bankruptcies in the financial sector are costly, not only for the Bank’s service delivery systems are efficient, safe and
the equity and debt holders of banks but often also for compliant with all their expectations. In turn, risk based
taxpayers. In order to avoid that the banks are constantly internal audit activities are the most important means of
under pressure and have to assume high risks and at the reinforcing control systems through the regular review of
same time manage the risks in order to avoid, or at least operations.
minimize losses.
Compliance, on the other hand, means taking actions
Risk is the net negative impact of the exercise of vulnerability, by the stakeholders as per advice /instruction laid
considering both the probability and the impact of down in inspection /audit reports /circular/letter etc. by
occurrence. Effective risk assessment must identify and the supervisory/regulatory/administrative authority/
consider both internal and external factors. organization concern to mitigate deficiencies/ correct lapse,
gaps, errors, omission, irregularities for overall soundness
Internal Factors and improved performance in the organization.
(i) Complexity of the organization structure,
Internal Control & Compliance (ICC) of the Agrani Bank
(ii) The nature of the Bank’s activities, Limited under direct supervision of Audit Committee of the
(iii) The quality of personnel, Board has been implementing detail guidelines on ICC risk
(iv) Organizational changes and management to assess and mitigate risks.
(v) Employee turnover. Internal control and compliance is a management process
External Factors designed to achieve:

(i) Fluctuating economic conditions, • Effective system of control;


(ii) Changes in the Industry, • Effectiveness and efficiency of operations;
(iii) Socio-political realities, • Reliability of financial reporting;
(iv) Technological advancement. • Compliance with applicable laws and regulations;
(v) Changes in rules and regulations • Safeguard of assets.
Internal control is the process, affected by a company’s Board Internal control consists of five interrelated components,
of Directors, management and other personnel, designed to which are:
provide reasonable assurance regarding the achievement of
i) Control environment
objectives in the effectiveness and efficiency of operations,
the reliability of financial reporting and compliance with ii) Risk assessment
applicable laws, regulations, and internal policies. Internal iii) Control activities
controls are the policies and procedures established and iv) Information and communication
implemented alone, or in concert with other policies
v) Monitoring
or procedures, to manage and control a particular risk
or business activity, or combination of risks or business Agrani Bank’s ICC is headed by a General Manager who is
activities, to which the company is exposed or in which it a professionally qualified Chartered Accountant. He has to
is engaged. place report on ICC directly to the Audit Committee of the

94
ANNUAL REPORT 2015

Board of Directors and report to the Managing Director & Function of above Divisions
CEO for administrative purpose. 1. Audit & Inspection Division-1: To carryout risk based
internal audit and inspection other than AD and Corporate
ICC of ABL consists of five divisions for its effective operation Branches,
headed by five Deputy General Managers. These divisions
2. Audit & Inspection Division-2: To carryout risk based
are:
internal audit and inspection in AD and Corporate Branches,
1. Audit & Inspection Division-1 Bank Divisions, Sub-divisions of the Bank.
3. Audit Monitoring Division
2. Audit & Inspection Division-2
(i) To carryout ICT Audit by Internal Control Team.
3. Audit Monitoring Division
(ii) To verify the internal control system & Operational
4. Audit Compliance Division (Internal) activities by Implementing of DCFCL, QOR, LDCL (Loan
5. Audit Compliance Division (External) Documentation Checklist) at Branch level

ICC Organogram of ABL


Board of Directors

Audit Committee of the Board

Managing Director & CEO

Head of Internal Control & Compliance (GM)


1 2 3 4
Audit Staff position for
Audit & Inspection Division Monitoring Audit Compliance Division
Division GM’s Secretariat

DGM DGM DGM DGM DGM


Audit & Audit & Audit Audit Audit
Inspection Divn. Inspection Monitoring Compliance Compliance Nil
(all other than Division (all Division Division Division
AID-2) AD Br. & H/O Div.) (Internal) (External)
AID-1 AID-2

8 AGM 13 AGM 3 AGM 4 AGM 3 AGM Nil

12 SPO 26 SPO 11 SPO 8 SPO 8 SPO 3 SPO

20 PO 27 PO 11 PO 9 PO 8 PO

3 PO/SO
56 SO 22 SO 11 SO 10 SO 10 SO

13 Officer 5 Officer 11 Officer 6 Officer 5 Officer Nil

8 NC Staff 3 NC Staff 5 NC Staff 2 NC Staff

Sub Total= 212 Sub Total= 51 Sub Total= 78 Sub Total= 9

Grand Total (212+51+78+9)= 350


50 Auditors out of 212 staff of Audit & Inspection Division will be engaged in Concurrent Audit

95
(iii) To Assist AID-1/AIU-1 in Risked Based Internal Audit by and help in ensuring efficient, safe and sound banking
assessing department wise risk (Off sight Analysis) with practices. The Committee identifies various risk factors that
grading of all branches. arise from the business activities of the Bank by reviewing
the audit reports for safe, sound and disciplined banking
(iv) To prepare and submit Self-Assessment of Anti-Fraud
Internal Controls report and Bank’s Health report to operations. Besides, the Committee gives time befitting
Bangladesh Bank. directions on preparing risk-based internal audit planning,
reduce the number of objections of the same nature raised
4. Audit Compliance Division (Internal) by internal audit by categorizing them according to the
To monitor compliance activities of branch and office under nature of objections and re-defining them as Serious Lapses
internal audit. (SL), Major Lapses (ML) & Major Irregularities(MI). The Audit
Committee works to ensure that the activities of the Bank
5. Audit Compliance Division (External)
are being carried out in accordance with the applicable rules
To monitor compliance activities of branches, office and sub- and regulations of Bangladesh Bank, Bank Companies Act
divisions under External Audit (Bangladesh Bank Inspection, 1991, Companies Act 1994 and internal rules, regulations
Commercial Audit, External Audit / Statutory Audit/ Issue
and policies of the Bank.
Based Audit of other Regulatory Authorities).
The Board is responsible for ensuring the operation systems
For effective internal audit, monitoring, compliance ICC
of internal control and for taking reasonable steps to
arranges several meeting. Audit & inspection /compliance/
safeguard the assets of the Bank and detecting & preventing
issues are presented and discussed in that meeting.
fraud and other irregularities through ICC of the Bank. Audit
Suggestions derived from that meeting, if needed ICC placed
Manual and Audit Implementation Manual have been
it to the BoD Audit Committee meeting.
introduced through ICC Manual to ensure proper internal
Internal Control and Compliance Policy of Agrani Bank control and compliance of the Bank. The Board also reviews
Limited the observations of the Board Audit Committee to make sure
In the light of Bangladesh Bank prudential guideline and that internal control & compliance are rigorously maintained
regulations of Memorandum of Understanding 2013 (MoU)
The Audit Committee consists of five members of the Board
signed between Agrani Bank Limited and Bangladesh Bank.
of Directors. All the members of the Committee are non-
Internal Control & Compliance (ICC) Policy-2013 is prepared
executive Directors.
which is approved in the 351st meeting of the Board of
Directors vide memo no.1213/13 dated 26/12/2013. It is There are sixteen meetings held regarding Internal Control
circulated vide Instruction circular no. ICC/AMD/27/2014 & Compliance in 2015 where all memos are approved by the
dated 10/02/2014. Audit Committee.

Internal Control and Compliance Manual of Agrani Bank The Efficiency, Effectiveness and Achievement of ICC in
Limited the year 2015
In light of prudential guideline and MoU with Bangladesh
Bank, ICC Manual has approved by BOD of Agrani Bank Risk Based Internal Audit and Inspection
Limited through Memo No. 1062/13 dated 29/09/2013 in As per the Bangladesh Bank instruction the ICC has been
337th Board meeting. This ICC manual has come into force implementing ‘Risk Based Internal Audit (RBIA)’ through
from 29/09/2013. After approval ICC issued an Instruction core risk factors in the daily activities of the Bank to assess
Circular No. ICC/101/2013 dated 04/11/2013 to all branches the business risk as well as control risk associated with the
and divisions of Head Office regarding responsible for the branches. The Audit & Inspection Divisions prepare a risk
implementation of ICC Manual. All rules, regulations, policies based internal audit plan for every year. The internal audit
and procedures of previous manual will be null and void plan is approved by the Board Audit Committee.
after the execution of the ICC Manual.
In 2015, Audit and Inspection Divisions conducted 719
Audit Committee of Agrani Bank Limited comprehensive audits (548 Branches, 27 Corporate Branches,
The Audit Committee of the Board of a Bank must play an 13 AD Branches, 49District Head Quarter Branches, 33 Zonal
effective role in providing a bridge between the Board and Offices, 5 Circle Offices, 33 Divisions and 44 others), 120%
management, shareholders, depositors and stakeholders achievement than targeted.

96
ANNUAL REPORT 2015

Comparative statement of Risk Based Internal Audit for Risk Based Internal Audit System has already been
2015 & 2014 established within the Bank. Adequate measures have also
been taken to work under the computerized environment.
2015 2014 The Audit Committee of the Board of Directors has accorded
Description the approval of conducting System Audit. Now all the
Target Achievement Target Achievement
branches and offices are subject to IT based System Audit
Branch/ Circle /EDP /IS to mitigate risks associated with computerization.
/Zonal Office/
601 675 500 637 In the year 2015 measured 444 branches Risk Based Internal
Division
Audit (RBIA) computes Risk in the following way:
Issue Based - 44 - 23
Risk lavel
Total Audit 601 719
500 660 Nature of Branch Total
Very
Achievement 120% High Medium Low
High
Total Audit
AD & Corporate
01 05 22 03 31
Achievement Branches

Other than AD & Cor-


After completion of internal audit, the Audit & Inspection 88 31 238 56 413
porate Branches
Divisions submit reports to the head of ICC. The ICC places
reports to the Board Audit Committee for necessary 89 36 260 59 444
suggestions. The Audit Committee evaluates the
irregularities, fraud and forgeries and important deviations Audit Compliance (External)
detected by internal auditors. In 2015, internal & external
Audit Compliance (External) of ICC is responsible to ensure
audit / inspection reports, appropriateness of ICC, policy
that the Bank complies with all regulatory requirements
guidelines were reviewed, updated and approved by the
while conducting its business. This Division is responsible to
Audit Committee for proper functioning of ICC.
compliance of Government Commercial Audit, Bangladesh
Audit Monitoring Bank Inspection, Chartered Accountancy firms Audit and
other Issue Based Audit.
Monitoring is the bank’s own oversight of the control system
performance. Effectiveness of the bank’s internal control Compliance on Bangladesh Bank Inspection
should be monitored on an ongoing basis. Key or high risk
items should be identified and monitored as the part of daily Year
activities. In addition, there should be periodic evaluation. Description
The Monitoring Division ensures its internal control process 2015 2014
through review of Departmental Control Functional Check No. of Branches Inspected (no. of report
List (DCFCL), Loan Documentation Check List (LDCL), Quar- 193 254
received)
terly Operation Report (QOR) of branches and other mech-
anism. If notable deviations are found, they have to report No. of objections (opening balance) 1,329 755
before head of ICC for taking necessary actions to mitigate
the risk. Add: No. of objections raised in the
3,779 4,789
In the year 2015, Audit Monitoring Division achieved its full year
target through effectively serving the following activities: Less: No. of objections compliance /
(3,821) (4,215)
settled
i) Self Assessment of Anti Fraud Internal Controls.
ii) Audit through Internal Control Team (ICT). Unsettled objections as on 31st Dec'15 1,287 1,329
iii) Measuring Risk Based Internal Audit (RBIA).
iv) Issue Based Audit /Inspection Team.
In 2015 Bangladesh Bank Inspection Team has inspected 298
v) Workshop to outreach on ICC Risk Management.
branches and raised 5,108 objections. Previous number of
vi) Data collection & analysis through DCFCL, LDCL, unsettled objection was 1,329. During the year 3,821 objec-
QOR (Daily, Monthly, Quarterly), etc. tions has been settled.

97
Compliance on Commercial Audit Year
Description
2015 2014
Year
Description Less: No. of objections compliance /
(50,516) (51,817)
2015 2014 settled
No. of Branches Inspected (no. of report Unsettled objections as on 31st
79 175 19,974 26,807
received) Dec'15
No. of objections (opening balance) 7,802 3,964 Risk Based Internal Audit Plan -2016
Add: No. of objections raised in the year 933 4,315
Each year the Audit & Inspection Division sets out a Risk
Less: No. of objections compliance /settled (756) (477) Based Audit Plan for the year which is approved by the Board
Recommended for settled (482) - Audit Committee. This will be a risk based plan where sen-
sitive areas will be given priority. The deficiencies identified
Unsettled objections as on 31st Dec'15 7,497 7,802
during the audits should be notified to the appropriate level
and significant audit findings should be reported to the BoD
In 2015 Commercial Audit team has conducted 79
Audit Committee
comprehensive audits and 8,735 objections have been
raised. Previous number of unsettled audit objection was
Risk Based Internal Audit Plan for the year 2016
7,802 of them 756 objections has been settled and 482
objection has been recommended for settling during the Annual Achievement in 2015
year through arranging tripartite meetings.The Compliance Targeted Scope Audit Plan
Divisions of ICC maintains strong liaison with the regulators 2016 Targeted Achievement
at all levels and ensures all guidelines received from
Corporate (all are
regulatory authority are properly disseminated among the 17 27 27
AD) Branches
relevant divisions.
Authorized Deal-
Audit Compliance (Internal) 13 13 13
er (AD) Branches
Audit Compliance (Internal) Division of ICC is responsible District Head
to ensure that the Bank complies with all regulatory 49 49 49
Quarter Branches
requirements while conducting its business. This Division is
responsible to compliance of Internal Audit and Inspection. Branches 431 391 511
During 2015 Internal Audit Team has inspected a total Zonal Office 62 62 33
number of 719 auditable items and raised 48,266 objections.
Previous number of unsettled objection as on 31/12/2014 Circle Office 11 11 05
was 26,807. During the year 2015, the total number of Head Office
objections 50,516 has been settled. Number of unsettled 36 32 33
Division
objections as on 31/12/2015 was 19,974.
Corporate Branch
Like external, this division also maintains strong liaison with 18 10 06
(yearly two times)
the regulators at all levels and ensures all guidelines received
from regulatory authority are properly disseminated among Issue Based 14 06 44
the relevant divisions. Total 651 601 721
Comparative statement of Internal audit compliance for Achievement in 2015 120%
2015 & 2014
The annual audit plan can then be developed as the reflection
Year of the results of the risk assessment model and the selection
Description policy. The risk assessment model and the selection policy
2015 2014
will enable the internal audit activity to define, indentify and
No. of Branches Inspected by the to set priorities for audit risk annually or more frequently as
719 660
Internal Auditors of the Bank business conditions dictate.
No. of objections (opening balance) 26,807 46,972
In short, ICC will ensure the efficacy of the Risk Based Internal
Add: No. of objections raised in the Audit and Inspection, Issue Based Audit and Special Audit for
43,683 31,652
year each and every Branch and Office, Window & Subsidiary of
Agrani Bank Limited.

98
ANNUAL REPORT 2015

Management
Requirement
Pe an

em ee
t
M
rfo ag

en
ag loy
rm em

an p
an en

M Em
ce t

Absence Payroll
Management Management
t
en

M
Tr ag
Management
ag hift

an
ai e
em

ni m
an S

ng en
Skill
M

Human Resource Management


& Development
99
Human Resource Management
Human Resource is the most valuable asset of an organiza- stuff and officer, maintain the performance appraisal, make
tion. Modern organizations are more conscious about the the PRL list and inform to concerned employee in due time,
best utilization of its human resources. The success of any sanction increment, encashment of leave, settlement of
organization depends on the proper, efficient and effective retirement benefit, leave sanction inside and outside of
management of the human resources. The basic task of Bangladesh, permit higher studies, update the human re-
HR Planning of the Bank is to formulate human resource source management information system and to certify the
management policy, to maintain the personal file of every freedom fighter’s certificates from the related ministry.

Dr. Zaid Bakht, Chairman of ABL is inaugurating a foundation training course for newly joined officers (cash) at ABTI.

Existing staff strength as on 31-12-15 a) Promotion


Promotion has been bestowed in different grades on 2015,
Existing as due to removing the monotonous mood, increasing finan-
SL cial benefit, social prestige, motivating employees and for
Name of post on 31-12-
No recognition of a job well done by an employee.
2015

1. Managing Director & CEO 1


Designation 2013 2014 2015
2. Deputy Managing Director 3
General Manager 9 9 5
3. General Manager 21

4. Deputy General Manager 104 Deputy General Manager 29 20 35

5. Chief Medical Officer(on contract) 1 Assistant General Manager 134 52 68

6. Assistant General Manager 302 Senior Principal Officer 400 122 227
7. Senior Principal Officer/Equivalent 818
Principal Officer 242 755 356
8. Principal Officer/Equivalent 1,390
Senior Officer 508 689 1462
9. Senior Officer/Equivalent 4,017
Officer 382 126 396
10. Officer/Equivalent 4,080
Clerical 472 149 4
11. Clerical 558

12. Non Clerical 2,101 Non Clerical 4 122 -

Total 13,396 Total : 2,180 2,044 2,553

100
ANNUAL REPORT 2015

Deceased Information
Following serving employees expired in last three years:

Grade 2013 2014 2015

Deputy General Manager - 1 -

Assistant General Manager 1 1

Senior Principal Officer 7 4 1

Principal Officer 3 4 3

Senior Officer 5 7 11

Officer 16 23 7

Clerical 2 8 9

Non Clerical 26 25 16

Total 60 72 48

Action Plan for 2016 ii) To ensure the right man in right place in right time for
i) To fill up the vacant post through promotion and direct maximizing bank’s profitability.
recruitment, by which the Bank can maintain our pro- iii) To settle the unsettled cases of retirement benefit at the
ductivity & service standard. earliest.

Position of Manpower as on 31-12-2015

Total Officer to Non


Name of Office Male Female Executive Clerical
Employee SPO Clerical

Dhaka Circle-1 1179 936 243 43 953 35 148

Dhaka Circle-2 1006 919 87 31 730 45 200

Chittagong 891 815 76 15 691 53 132

Khulna 1492 1375 117 32 1191 43 226

Rajshahi 1430 1330 100 20 1186 47 177

Sylhet 606 580 26 12 507 15 72

Barishal 673 621 52 13 574 13 73

Rangpur 880 788 92 12 723 21 124

Mymensingh 982 887 95 15 830 31 106

Comilla 1036 982 54 12 792 37 195

Faridpur 492 459 33 12 377 15 88

Corporate Branch 1480 1351 129 67 947 152 314

HO Departments 1249 1085 164 148 804 51 246

Total 13396 12128 1268 432 10305 558 2101

101
Age group wise Human Resources as on 31st December Employee Turnover Rate as per following table
2015
Number of Employ- Total Employees
Years
Age group(years) Male Female ee who left the Bank (closing position)

<30 1273 203 2015 561 13,396

30-50 6010 691 2014 811 13,414

>50 4845 374 2013 193 14,005

Total 12128 1268 2012 271 13,890

2011 833 12,085


Promotion, Motivation and Reward Scenario in 2015 as
per following table
Educational Qualification of existing Manpower

Designation Male Female Total Name of highest


Male Female Total
degree obtained
General Manager 4 1 5
PHD 3 - 3
Deputy General Manager 32 3 35
Professional Degree
Assistant General Manager 61 7 68 1 - 1
(FCA/FCMA/ACCA)
Senior Principal Officer 189 38 227 Post Graduate 6,623 869 7,492
Principal Officer 326 30 356
Graduate 2,132 228 2,360
Senior Officer 1272 190 1462
HSC 1,177 158 1,335
Officer 365 31 396
SSC 316 13 329
Clerical Staff 4 0 4

Non Clerical Staff 0 0 0 Others 1,876 0 1,876

Total 2253 300 2553 Total 12,128 1,268 13,396

Appointment of Principal Officer, Senior Officer, Officer and Officer (cash) from 2009 to 2015

Name of Posts 2009 2010 2011 2012 2013 2014 2015 Total

Senior Officer 74 445 56 1422 164 2161

Officer 726 472 324 569 2091

Officer (Cash) 613 390 448 - 497 433 795 3176

Doctor - 1 - - 1

Architect and Computer Engineer - - 34 - 34

Principal Officer (Law) - - - 3 3

Principal Officer (Audit) - - - 6 6

Senior Officer (Audit) - - - 25 25

Total 1413 1308 862 2025 661 433 795 7497

102
ANNUAL REPORT 2015

Training and Development

Dr. Syed Abdul Hamid, FCA, Managing Director & CEO of ABL is inaugurating a workshop for the executives at ABTI, Dhanmodi, Dhaka.

Training is an opportunity to build up skill and knowledge courses/ workshops. ABL has covered 7,741 participants
based human resource of an organization. Training by conducting 198 courses/workshops in 2015. Of them12
has specific goals of improving capability, efficiency, management development training courses and workshops
productivity and performance of its manpower. A structured were arranged for 537 executives of the Bank to develop
training and development program ensures consistent managerial skill & knowledge.
experience and knowledge of human resources. Agrani Bank
Training Institute (ABTI) was established in 1976 and since From the year 2009 to 2015 a huge number of probationary
then ABTI is entrusted with the responsibility of designing officers were recruited in ABL. To build up them, ABTI
course curriculum, reading materials, and course contents undertook comprehensive program both in Dhaka and
for conducting training for the purpose of enhancing outside Dhaka. In 2015, Foundation Courses conducted by
professionalism and administrative efficiency of the ABTI are as under:
executives and officers of the Bank.
Level of
ABTI started its training programme in 1976 at 18 Name of No of No of Par-
Partici-
Bangabandhu Avenue Dhaka. In 1996 it was shifted to Course Course ticipants
pants
35/C Nayapaltan, Dhaka at a wider space to accommodate
more training courses. Both those spaces were rented. In Banking
Senior
2014, with a view to accomplish standard and updated Foundation 13 576
Officer
training, it has been shifted to a purchased building at 183 Course
Sat Masjid Road, ADC Empire Plaza, (Opposite Star Kabab)
at Dhanmondi, Dhaka comprising of 4th to 6th floor. Out Banking
of these, at 3rd and 4th floor there are 4 class rooms able Foundation Officer 2 67
to accommodate 200 participants, room of the director, 6 Course
rooms for faculty members, one VIP room for Chairman and
Banking
MD & CEO of the Bank, ABTI library and office room. The 5th Officer
Foundation 21 841
floor is arranged for ladies hostel able to accommodating (Cash)
Course
25 women participants, modern computer lab and central
library. The 6th floor is arranged for residence of 200 male Banking
participants, hostel super & guests and a dining space cum Promoted
Foundation 4 142
auditorium. There is a high powered generator, two capsule Officer
Course
lifts and every room is equipped with air condition, WiFi and
modern sound system for class rooms. ABTI has organized different courses for enhancing
knowledge & skills of existing officers and of those who
Since its inception in 1976 till 2015, ABTI has covered a total have completed the banking foundation course, those are
number of 82,264 executives/officers/staff through 2,423 as follows:

103
Name of Course Level of Participants No of Course No of Participants
SO to SPO /
Branch Management 3 126
B.M / 2nd Officer
Credit Operation and Management SO to SPO 4 196
Foreign Trade & Foreign Exchange SO to SPO 3 114
SME & Micro-credit SO to SPO 1 48
Risk Based Audit Auditors 1 58
Islamic Banking Desk Officer 1 20
In 2015, ABTI has conducted workshops named & styled as ‘Risk Based Capital Management’ in Banks, which has been
designed for executives.The following workshops related to risk management and other financial issues were conducted:

Level of No of
Name of Course No of Course
Participants Participants
Credit Risk Management Credit Officers 3 121
AGM to Concern
Credit Policy & Credit Risk Management 2 89
Officer
Training of Trainers (TOT) on Credit Policy & Credit
SPO to AGM 1 23
Risk Management
Training of Trainers (TOT) on Money Laundering
SPO to AGM 1 37
Prevention
DGM/AGM to
Calculation of Capital Adequacy under BASEL-II 6 286
Concern Officer

ABTI has organized the following course/workshops related to Online Banking & Information Technology:

Level of No of
Name of Course No of Course
Participants Participants
T24 Online Banking Software (Retail Module) Officer & above 7 215
T24 Online Banking Software (Credit Module) Officer & above 7 201
T24 Online Banking Software (Trade Finance Module) Officer & above 1 28
T-24 Awareness Training Concern Officer 24 1059
Computer Skill Development Courses Concern Officer 8 218

ABTI conducted following outreach training courses/ Internal Training through ABTI
workshops outside Dhaka at training center established in
the circle offices or zonal offices: Category Total

Outreach Courses: Number of Courses 198


Male 7205
No of Courses/ No of Number of Employees
Venue
Workshops Participants Female 536
received Training
Chittagong 8 445 Total 7741
Khulna 8 369 Working hours of training received through
498396
Rajshahi 10 496 External Training
Rangpur 6 312
Regular Trainer 10
Sylhet 7 325
Others 24 416 Number of Trainer Guest Speaker 68
Total 78
Statement of male & female participants, internal & external
guest speakers of different courses/workshops conducted Number of participants of local & foreign training in different
by ABTI on 2015: institutes/academies conducted by ABTI in 2015:

104
ANNUAL REPORT 2015

External Training Other than ABTI (Arranged by HRPDOD)

Category Local Foreign Total


Number of Courses 216 11 227
Male 421 28 449
Number of Employees received Training Female 38 1 39
Total 459 29 488
Working hours of training received through External Training 14320 208 14528
No. of External Training Institution 14 9 23
Countries Traveled 5

Expenditure of previous five years training courses/ of Directors, in which 9,690 participants will be included
workshops conducted by ABTI in 211 courses/workshops would be on: i) Management
development course ii) Foundation course iii) Skill
Year Total Expenses (BDT Million)
development course iv) Workshop and v) Computer course.
2015 56.38
2014 26.83 Outside Dhaka, Agrani Bank Training Institute is in
2013 19.39 Chittagong, Rajshahi, Khulna, Rangpur & Sylhet and two
2012 21.01 other outreach centers are at processing in Barishal and
2011 19.80 Comilla.

For the year 2016, a comprehensive need based following Agrani Bank Training Institute has been working hard for
five categories training course curriculum has been designed developing human resources full of potentiality, creativity,
by ABTI and the same has duly been approved by Board skill, integrity and motivation.

105
ANNUAL REPORT 2015

CORPORATE
SOCIAL
RESPONSIBILITY

107
Corporate Social Responsibility
The role of business, worldwide and especially in the etc.; giving stipend to the poor meritorious students;
developing countries, has evolved over the last few sponsoring various seminars, conferences, convocations,
decades from classical ‘profit maximizing’ approach to a alumni, anniversaries, drama festivals, competitions, training
‘social responsible’ approach. There are many reasons for programs; observing important national days etc. With a
shifting the role of business from classical concept to a view to providing a smooth interface between student life
social responsible approach. Enterprises create wealth and professional life, ABL offers internship facility to the
and job opportunities for the society, on the other hand, BBA and MBA passed students of different universities. The
they pollute and destroy environment and ecology with interns were granted the opportunities to groom with us
the devastating impact on human health and bio-diversity in a truly professional, dynamic and challenging corporate
worldwide. The concept of social responsibility of a company environment.
is recent phenomenon but many observers agree that the
globalization has spurred its growth and prominence. Health Care
Access to healthcare facilities is one of the fundamental
Primarily Corporate Social Responsibility (CSR) starts with rights of every human being. However, most of our people,
the consideration of social implications by any corporate especially the underprivileged group has little or no access
body which is ultimately reflected through its initiatives to health care facilities. ABL is committed to assist those poor
towards betterment of the disadvantaged people of a people, who have no way to secure basic treatment. During
society. As such in broadly defining, CSR refers to the the year 2015, the Bank has given financial assistance from its
voluntary role of business towards building a better society CSR fund a sum of Tk. 103.00 lac to the beneficiaries to ease
and cleaner environment beyond its financial commitments
their miseries.
and regulatory obligations. Considering importance of
CSR, Bangladesh Bank since June 2008 has officially started Disaster Relief
encouraging towards mainstreaming CSR in banks and ABL’s lending policies with regard to environmental
financial institutions of Bangladesh. As a stakeholder of management are responsive to emergency support needs of
the society, Agrani Bank Limited is keen to augment CSR people affected by natural and man made disasters. During
activities gradually in the days to come. the year 2015, the Bank has spent Tk. 174.33 as donation to
the disaster affected people.
Agrani Bank Limited passionately believes that a better
society is fundamental precondition for a better business Concern for the Environment
environment. Nevertheless, CSR is viewed as one of the core Today our planet is exposed to a severe environmental
corporate values of the Bank. In its millennium summit held catastrophe than ever before. ABL’s corporate social
at the UN Head Quarters, New York, USA in 2000; the United responsibility contributes generously to the development of
Nations set eight goals popularly known as Millennium Green Banking. Protection and nourishing the environment
Development Goals (MDGs), such as: i) eradicate extreme is part of ABL’s investment principle. Environmental issues
poverty and hunger, ii) achieve universal primary education,
are taken into account while the Bank is assessing credit
iii) promote gender equality & empower women, iv) reduce
proposal for the industrial projects. As a humble effort to
child mortality, v) improve maternal health, vi) combat HIV/
reduce environmental pollution, the Bank is financing CNG
AIDS, Malaria and other diseases, vii) ensure environmental
refueling stations. Besides, most of office vehicles of the Bank
sustainability and viii) develop a global partnership for
have already been converted to CNG fueling system.
development. Bangladesh is one of the signatories to
achieve those goals by 2015. As such, ABL as a big SCB has Sports
aligned her CSR activities partially with those goals.
Since inception the Bank is continuously providing support
Agrani Bank Limited is committed to contribute towards
to the football and hockey clubs and tournaments for the
social development through its CSR program. ABL’s ethical
promotion of games and sports of the country. ABL has its
standard is not only meant for maximising profit, rather
own football team that has been participating in the national
it’s vision is to build up a society where human dignity and
football league relentlessly since independence. In several
rights receive the highest consideration and evaluation.
Bank’s motto is also to improve the society and its culture times the team defeated renowned clubs of the country like
by means of CSR. Mohammedan, Abahone, Brothers Union etc. The Bank has
also a cricket team of its own that has been participating in
Education the First Division Cricket League since independence. The
ABL has been donating a good amount to various educational team frequently succeeds to keep its ranking position from
institutions for the last couple of years. These helps were three to five in the league. A good number of cricketers and
extended for renovation or construction of building/class footballers are playing in the national and international
rooms of different schools, colleges, universities, libraries levels who were once member of ABL sports team.

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ANNUAL REPORT 2015

Arts and Culture NGOs since 1997 at privileged rates of interest. ABL financed
Agrani Bank Limited is always committed to enriching NGOs are of various categories and capacities. Such activities
Bengali heritage, art, culture and literature. In the previous also contributed to generation of income and employment
years the Bank contributes to different programs and as well.
purposes relating to different cultural affairs. From 2011
onward, ABL is sponsoring children book fair at the Promotion of Crop Production
Bangladesh Shishu Academy premises. In every year, seven To attain food security of the country, ABL has been in a
eminent writers were awarded Agrani Bank Children Literary unique position to provide credit facilities to the farmers at
Award; a prestigious literary award of the country introduced a lower rate of interest (currently at 8 percent) since 1977.
by ABL since 1981 and is being offering every year. In the A huge amount of foreign currency is spent every year to
year 2015, the Bank donated a sum of Tk. 30.00 lac to the import pulse, oil-seeds, ginger, spices, maize etc. In order
Bangladesh Shishu Academy to organize a nine day book to save foreign currency, the Government of Bangladesh
fair to commemorate the birthday of Bangabondhu Sheikh encourages our farmers to boost up the production of above
Mujibur Rahman, Father of the nation. crops by introducing rebate rate of interest at 4 percent

Dr. Atiur Rahman (middle), Governor of Bangladesh Bank is seen in an opening program of Day Care Center for the children of State Owned
Commercial Banks’ employees at Motijheel, Dhaka.

Customers and Well-wishers which is considered as the lowest rate of interest among any
ABL feels proud to provide services to the valued costomers credit facilities.
without any hidden cost. The Bank serves the customers
as business partner. The Bank sincerely strives to improve Promotion of Entrepreneurship
business relationship with the customers for common The Bank envisages fostering entrepreneurship amongst
benefit. By optimising financial performance at the least the potential, new and small entrepreneurs and generating
cost the Bank protects the interest of customers. The Bank employment through financing Small and Medium
is maintaining a good relationship with the peer business Enterprises. Keeping the aim in mind, ABL does not run after
friends for mutual growth and development. The relationship the so called blue chips towards profit maximization of the
with our business partners is based on reciprocal trust and Bank. Rather, it always remains stick to the triple bottom
respect. We transact with them in a fair and transparent way. line: People, Planet & Profit and focused to the promotion of
SMEs. In this way, a lot of entrepreneurs have grown with us
Poverty Alleviation through which employment opportunities are created for a
It is globally accepted that the Non-Government huge number of people.
Organizations (NGOs) have been performing a laudable
role in poverty alleviation across the world, especially in Women Empowerment
Bangladesh. With a view to widening the access to finance to As half of our population is woman, a sustainable national
the poor and ultra poor community, ABL has been financing progress can’t be attained if women are left aside. Therefore,

109
Agrani Bank Limited donated an ambulance to Dhaka Metropolitan Police.

they should progressively be brought to the mainstream use such other communication channels for discouraging
of our development activities. Considering this reality the drug, smoking, pollution, population growth etc. The Bank
bank through its ‘Nari Agrani’ program has been mobilizing
continued such awareness building activities through CSR in
credit facilities in industry, service and business sector to
the potential women entrepreneurs at a reduced rate of 10 the year 2015.
percent interest. ABL’s program for the woman entrepreneurs
will gain due momentum in the days to come. Other CSR Activities
Agrani Bank Limited is always attentive to attain more and
Awareness Building more good corporate attributes. So, apart from the exposures
Generation of awareness is a very useful tool to combat mentioned above, ABL’s CSR disclosure includes multi-facet-
social evils, like drug addiction, smoking, pollution,
ed social activities. ABL has also been indirectly contributing
terrorism, over population etc. For this purpose, the Bank has
continued financial support to different social organizations to CSR activities. In the year 2015, ABL disbursed Tk. 39.18 lac
who displayed banner, festoon, sticker, display board and in different welfare activities.

Category-wise and Year-wise CSR Contribution of the Bank are as follows:


Taka in lac
Category 2011 2012 2013 2014 2015 Total
Education 251.11 281.18 143.31 102.86 - 778.46
Health Care 86.40 85.32 154.04 37.27 103 466.03
Disaster Relief 2.00 14.19 262.15 151.08 174.33 603.75
Environment 4.00 7.00 80.50 80.51 - 172.01
Sports 25.00 21.15 76.90 119.61 - 242.66
Arts & Culture 63.70 48.45 39.06 39.20 - 190.41
Others 140.62 75.69 81.19 115.02 39.18 451.70
Total Contribution 572.83 532.98 837.15 645.55 316.51 2905.02

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ANNUAL REPORT 2015

Green Banking
111
Green Banking
Global warming is an issue that calls for a global response. strategies. In this regards, ABL issued some important Green
The rapid change in climate will be too great to allow many Banking related circulars.
eco-systems to suitably adapt, since the change have direct
impact on bio-diversity, agriculture, forestry, dry land, b) Green Banking Structure: As per Bangladesh Bank’s
water resources and human health. Society demands that policy guidelines for Green Banking, ABL has already taken
business also take responsibility in safeguarding the planet. necessary steps to implement the 1st phase, 2nd phase
In this circumstance, the banks have come forward with eco- and the 3rd phase to implement environmental friendly
friendly financing program. Eco-friendly activities related banking activities. To carry out Green Banking activities ABLs
to banking jobs are known as ‘Green Banking’. Green banks organizational structure is as follows:
or environmentally responsible banks do not only improve
their own business but also affect socially responsible Green Banking Committee
behavior of their other banking activities. With a view to executing the program, a Green Banking
Committee has been formed comprising nine divisions of
Bangladesh Bank has been helping government in the Head Office. These divisions are: Rural Credit Division,
implementing the provisions of key environmental Industrial Credit Division, SME Credit Division, Card Division,
regulations related to the financial sector. From time to time Credit Policy and Credit Risk Management Division, Central

Dr. Atiur Rahman, Governor of Bangladesh Bank is speaking in the inauguration ceremony of Roof Top Gardening program of Agrani Bank
Limited where Chairman and MD of ABL are also seen.

Bangladesh Bank has been issuing environment related Accounts Division, Information Technology and MIS Division,
circulars and guidelines. Especially, their circular on ‘Policy Planning Coordination and Marketing Division, HR Training
Guidelines for Green Banking’ in 2011 is a remarkable step Research and Development Division.
on the way to developing Green Banking practices in the
financial sector of Bangladesh. A separate guideline on Formation of Green Banking Division
‘Environmental Risk Management’ by Bangladesh Bank Agrani Bank Limited started its Green Banking activities in
is also in place. In addition, Bangladesh Bank introduced the year 2011 by forming a ‘Green Banking Unit’ under its
refinancing schemes and a few incentive measures to Rural Credit Division. From 9th September 2013, it has been
encourage banks to undertake green activities. upgraded into a separate and independent division named
ABL’s Green Banking Initiatives as ‘Green Banking Division’. As a good corporate body, ABL
a) Policy Formulation and Governance: As per is upholding environmentally responsible practices through
Bangladesh Bank’s policy guidelines for Green Banking, designing its’ CSR (Corporate Social Responsibility) activities
ABL has formulated and adopted Green Banking policy and into green banking practices.

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ANNUAL REPORT 2015

The Bank has already launched several green financial Budget Allocation
products to facilitate an eco-friendly financial atmosphere ABL has approved a considerable amount for Green banking
in the country. ABL is going ahead with a forward looking in their annual budget which will include (a) Budget for
green banking strategy. The Division has taken the following Green Finance, (b) Budget for climate risk fund, (c) Budget for
effective measures in order to carry out green banking marketing & capacity building. ABL has allocated Tk. 500.00
activities as per Bangladesh Bank’s guidelines. million for green finance Tk. 40 million for climate risk fund
and Tk. 10 million for marketing & capacity building.
Set up of green branch
As a pilot project, Amin Court Corporate branch of Dhaka BDT in million
has been selected for converting it into a green branch. Year Budget Disbursement
Gradually all the branches of ABL will go under green branch.
Three branches of maize development project in the districts 2011 500.00 19.67
of Dinajpur, Bogra, and Thakurgaon have been surveyed for 2012 500.00 99.21
the purpose of converting them into green branches.
2013 500.00 22.83
Green Office Guideline 2014 500.00 28.42
To adopt and follow in-house green activities by all employees
of ABL, ‘Green Office Guideline’ is issued and distributed to 2015 500.00 143.15
all of its offices and branches. This would enable the staff-
Green Finance
members of ABL for efficient use of electricity, fuel, water, ABL has given preference to eco-friendly business activities
paper and to reuse of equipments. and energy efficient industries. Environmental infrastructure
c) Incorporation of Environmental Risk in Core Risk such as renewable energy, clean water supply project, Efflu-
Management ent Treatment Plant (ETP) and project with ETP, solid & haz-
ardous waste disposal plant, bio-fertilizer plant, brick fields
According to the ERM guidelines of Bangladesh Bank,
having Hybrid Holfman Kiln (HHK) technology are encour-
ABL also incorporated environmental risk in the Core Risk
aged as a part of green financing practices. Up to December
Management considering EnvRR (Environmental Risk Rating)
2015 total disbursements of ABL’s loans under green financ-
in the overall credit risk methodology in order to do required ing in different sectors are as follows:
justice to the project/business deal.
d) Green Banking Activities Disbursement
In-house Environmental Management Sectors Amount
A number of initiatives have been taken for in-house No (In Lac
environment management defining the clean indication for Tk.)
maintaining a green office. The following initiatives are taken
1.Solar panel 222 113.15
in this regard:
2.Easy bike 638 495.42
i. Use of paper on both sides for internal use.
3. Bio Gas 133 585.59
ii. Use of online communication in the best possible
manner. 4. Hybrid Hoffman Kiln Brick field. 20 1899.18
iii. Using more daylight instead of electric lights and proper 5. Vermi-compost 79 39.50
ventilation in lieu of using air conditioning.
iv. Use of Eco Font for printing light impression on both Total 1092 3132.84
sides of the paper.
Roof Top Gardening (RTG)
v. Video/Audio conference in lieu of physical travel.
Due to unplanned urbanization and excessive/extreme
vi. Efficient use of printer cartridges, photocopy toner, construction of high-rise building the open space is
office stationary, etc. declined, the cultivated/fertile land is reduced, green trees
vii. Sharing e-mail instead of paper memos(save paper, save are vanished/decreased and the ultimate result is the rise
trees) of temperature. Unfortunately, the result is the temperature
viii. Use of solar energy/renewable energy sources of urban area which is more than 80° C from the rural area.
ix. Developing Green Office Guide for reducing the It is seen from a research that by introducing of RTG the
information gap/reducing hazards/increasing efficiency/ temperature can be reduced approximately 2° to 30° C.
awareness/reducing pollution/developing green The main objectives/aim of RTG is not only trim down the
banking for sustainable financing. temperature but also utilize the barren or open space of roof,

113
produce and acquire fresh or formalin free fruit & vegetable is also carrying out some training programs in Rajshahi and
and the remaining/additional portion of that production can Bogra where about 150 trainees have been trained up in this
be traded/sold for growth/improvement of socio-economic regards.
condition. Under different innovative program regarding
Climate Risk Fund
green product, RTG loan program have been launched to
build a healthy environment. The highest loan celling under A climate risk fund of Tk.4 crore has been created at a
this program isTk. 2.25 lac and the rate of interest is 9% per lower rate of interest/without interest to assist two types of
annum. projects; one is to assist projects which might be affected
due to natural calamities and the other is to promote the
Recyclable Product projects like forestry, embankment, pure drinking water etc.
Agrani Bank has taken initiative to conduct survey work on
The Bank has CSR fund for social, educational, cultural and
the following recyclable product:
environmental advancement.
01) Produce reusable paper from waste paper recycling
plant. Maize loan program under contract farming system at
02) Plastic waste recycling plant. greater Bogra, Rangpur and Dinajpur district.
03) Recyclable bags manufacturing plant.
Bangladesh expenses an amount of near about twelve and
04) Recyclable poly-propelin threat and bags manufacturing
five thousand crore in importing maize, pulses, spices and
plant.
oil seeds product. Country may save ten thousand crore
05) PET bottle recycling plant. taka if the above agri-products are cultivated broadly in our
06) Solar battery recycling plant. country.
07) Municipal garbage recycling plant.
Bangladesh Bank has instructed the scheduled banks to
Online Banking introduce contract farming system in their credit activities.
All the branches of ABL have now internet connectivity which In the contract farming system, contractor ensures the
enables the Bank to avail easy use of BACPS (Bangladesh
marketing of the agri-products by supplying the farmers
Automated Cheque Processing System), BACH (Bangladesh
Automated Clearing House) & BEFTN (Bangladesh Electronic agri- inputs (seed, fertilizer, insecticide etc.)
Fund Transfer Network). Online banking is an important
In order to alleviate poverty and unemployment situation in
element of green banking strategy of ABL which has started
in the Bank from 1st July 2010. the districts of greater Rangpur, Dinajpur and Bogra, Agrani
bank Limited has introduced contract farming system in
Green Marketing those areas jointly with a NGO Swiss-contract (Katalyst)
ABL is marketing products and services based on and EDGE Consulting Ltd. (NGO). ABL in collaboration
environmental factors or awareness. The Bank is advertising with NCC bank is going to publish a training Manual on
its products, notice, circular etc. through internet media. Maize Cultivation under Contract Farming system. Katalyst
Green Awareness and Training handed over the maize loan product to ABL in 2014. ABL is
A good number of officers and executives have been trained now replicating this program to its different branches viz:
on different Green Banking training programs held in BIBM Kurigram branch, Kurigram, Akkelpur branch, Joypurhat,
and ABTI in the year 2013. One program about Training Khagrachari branch, Khagrachari.
on Trainers (ToT) on Green Banking held in BIBM and two
programs on ‘Environmental Risk Management’ have been Rate of interest for short-term loan 4% per annum & for CC
carried out by ABTI. Besides these, Green Banking Division (Hypo) 16% per annum.

The disbursement situation of loans of Maize cultivation under contract farming system up to December 2015 is as follows:

Taka in Lac

No of Loanee Disbursement Recovery Overdue Classified

898 239.76 189.11 17.56 -

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ANNUAL REPORT 2015

National Integrity Strategy


Integrity is generally referred to behavioral upgradation Limited has brought almost all branches (928 out of 932)
influenced by ethics and honesty. At the personal level it under online banking system.
means dutifulness and honesty. This reference has been
used in the stated integrity strategy. For achieving remarkable peformance in maintaining
integrety 50 employees have already been rewarded to
In the context of globalization and mordenization encourage best practice.
implementing national integrity strategy in the banking
sector is very important. It is imperative for the employees Impact of NIS on Circle, Zone and Branch
and shareholders related to this sector to abide by this Due to the strict legal bindings of integrity sanctioning
national integrity strategy. authoirities at the Circle and Zonal office cannot adopt
any unfair means while conducting appraisal of any loan
Role and Importance of Integrity and its Prospects in
proposal or giving sanctions.
Bangladesh
Integrity specifies that development at all levels including At the branch level integrity ensures sticking to the standard
personal and national development has to be done in a
banking practices regarding retail banking and places top
fair and transparent way and has to be free of any kind of
most priority in maintaining employees’ morale and ehtics
unfair means or unjust i.e. there should be no scope for
thus assuring fair conduct and smooth customer dealings
corruption. When there is a strong legal framework ensuring
which increases customer responsiveness.
integrity in all sectors i.e. ensuring compliance with the set
rules and regulations of any organization including public Middle and Longterm Recommendations
and private sectors, development policies and plans taken
1) Working with ethics & honesty is to be encouraged and
by the Government could be implemented smoothly and
any complaint regarding this issue is to be taken under
expedited through the augmented accountability of all the
quick action.
employees at the key tiers.
2) To implement banking rules and regulations properly.
Current Status of ABL in Terms of NIS Implementation 3) To bring transperancy in every sphere of Agrani Bank
For this purpose Agrani Bank Limited formed a committee
Limited through digitalisation.
named `Ethics Committee’, consisting of 11 members
headed by MD & CEO to implement National Integrity 4) To counter various outside influences through ensuring
Strategy of Government of the Peoples’ Republic of transperancy & accountability at every sector of Agrani
Bangladesh. To materialize the strategy, Agrani Bank Limited Bank Limited.
formed 1029 committees which have 1,029 Focal Points and 5) To ensure that new loans will not be further classified and
a special & seperate training session has been adopted in the take necessary steps to recover the existing classified
Foundation Course of Agrani Bank Limited as well as in other loans.
training programmes. The 1,029 committees are comprising
6) To implement proper performance based rewarding.
of the Head Office Divisions, Circles, Zones and Branches.
7) To appoint meritorious manpower and to implement the
To bring transperancy in all banking works, to increase integrity action-plan by them to ensure the development
efficiency and to trim through digitalization Agrani Bank of the Bank.

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ANNUAL REPORT 2015

Digitalization of
Agrani Bank Limited
117
Automation and Modernization in ABL
Information and Communication Technology (ICT) has its branches and offline to offline branches, cheque payments
direct impact on productivity and competitiveness in both of any branch, sending and receiving of DD advice easily
domestic and international markets. We are proud that and safely. Now a days customers of the Bank are making
Agrani Bank Limited is the first among the commercial banks transactions instantly among all the branches by using this
in this country to introduce computer-based technology facility.
using IBM Main Frame computer from 1968. Since then
amidst increasingly tough competition, the efficiency gained Moreover, several in-house web based MIS Software have
and the advancement of IT have offered us the opportunity been prepared for branches supervision and consolidation
of various information along with other necessary jobs
to open up new avenues of advanced, innovative products
performed by the branches and controlling offices. Some of
and improved customer services. Sufficient fund has been
those software are:
allocated by the Bank in order to implement the ICT & MIS
system by purchasing powerful hardware and software as 1) ‘Web Based online MIS (WMIS)’ software for consolidation
per ICT plan. of Statement of Affairs, GL/PL of all branches and off-
sight monitoring and supervision of the branches by
Overall Digitization
zonal heads, circle heads and top management of the
The Information Technology and MIS Division of the Bank is
Bank. It is also used for preparation of CL (classification
responsible for managing automation of banking operations.
of loan) statement and other related reports of all
It is well equipped with IBM Mid Range computers, very
branches, as database of all loans and advances are
High End Servers and latest microcomputers and staffed
collected and updated by this WMIS software.
with trained and experienced personnel. The Bank uses its
in-house software for processing most of the jobs which are: 2) ‘ISS’ software for reporting ISS statement correctly to
Bangladesh Bank web portal and also for consolidation
a) Inter-branch Transaction Reconciliation.
of the statements of all the branches in Head Office.
b) Foreign Bank Accounts Reconciliation (Nostro Accounts).
c) Personnel System. 3) ‘FEX-Monitor’ software for reporting the information
of different export and import LC opened by the AD
d) Pay-roll of Head Office Employees.
branches of the Bank correctly in defined format with a
e) Inventory Management etc. view to send them to Bangladesh Bank web portal.
Progress of Bank’s MIS 4) Online CIB Reporting software is prepared and
Agrani Bank Limited has implemented MIS system to CBS customized by MIS Division of the Bank. This Division
for fulfilling digitalization. It’s main purpose is to collect receives previous month’s CIB information sent from
necessary information promptly, store and consolidate, related branches via zonal offices through online within
monitor, supervise and to find statistics to take prompt certain period of the month. MIS Division verifies and
decision and to maintain effective organizational structure. consolidates those information and then sends to
To implement this goal a complete online based web Bangladesh Bank through FTP (File Transfer Protocol)
portal has been established. Statement of affairs, income channel within 20th of that month. In case of collecting
& expenditure statement, deposits, loans and advances, CIB report, the branches directly send CIB inquiry form
classification of loan (CL), branch information, classified to head office and head office sends the report to
loan information, Integrated Supervision System(ISS), branches accordingly through e-mail.
human resources related information have been added
in this system through which monthly, quarterly and 5) The scheduled bank statistics (SBS) of depositors (SBS-
annual business position can be obtained accurately when 2) and borrowers (SBS-3) of the Bank are now being
necessary. Officers from branches, zones and Head Office collected efficiently and accurately through core
collect these information using their own user ID and banking software (T-24) and WMIS system which saves
password. manpower and time.

Besides this, MIS collects information from Temenos T-24 The Bank has a good team of highly skilled and experienced
software operated in branches, preserve these information manpower both in technical and business areas to handle
and convey those information to Bangladesh Bank , Ministry IT operation deployed in Head Office, Zonal Offices and
of Finance, Parliament according to their requirement. Branches. The manpower has been appointed in IT & MIS
Division and Zonal Offices so that they can monitor and
ABL’s IT personnel developed and introduced a ‘Web Based control various ICT operations at the grass root level. The
Online’ software for the customers of all branches of the relevant employees are equipped with adequate training
Bank to give them online fund transfer facility. It facilitates to cater all kinds of needs related to ICT. Almost all the
cash withdrawals from T-24 based online branches to offline personnel of the Bank are enriched with basic knowledge

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ANNUAL REPORT 2015

of IT and trained on different courses. Primary and higher a) Retail Module: All the functionalities of general banking
training are being conducted on IT throughout the year. like SB, CD, FDR, SND, APS, ABS, DD, PO/ PS etc. are
covered under this module.
Computerization of Branches
Agrani Bank Limited has grown significantly over the years in b) Credit Module: All kinds of credit operation like CC,
branch automation. Till date all branches are computerized OD, consumer loan, staff loan are handled under this
by using online and offline branch banking software. Among module.
930 branches, 816 branches are online( T-24 Software) and c) Trade Finance: All activities relating to foreign exchange
only 114 branches are offline. business can be handled under this module.
Most of the banking activities can be carried out using this d) Treasury Module: All treasury functions i.e. security,
software. Bank provides continuous practical training for the money market, and investment are covered under this
users of these software. Now, all the branches are providing module. Also, centralized Head Office GL is incorporated
computer services with internet connectivity along with with Treasury Module.
‘Online Foreign Remittance Payment Software’. Branches are
capable of making instant payment of foreign remittance For all kinds of automation activities, the Bank has deployed
to the beneficiaries. As all branches have internet facilities, human resources in the major areas from the existing
circulars along with letters, memos, documents from the manpower. Primarily, two teams i.e. business team and
Head Office are being sent to all branches and controlling technical team are working. The business team was formed
offices through e-mail as a part of paperless banking. choosing experts from each and every functional areas
i.e. general banking, credit, trade finance and treasury.
Online Banking The technical team comprised of the experts in hardware,
IT-based banking plays a major role in rendering improvised database, operating system, network, online banking
services to the valued customers and stakeholders in software. For capacity building, they were given adequate
today’s competitive banking environment. The Bank has training to make them capable of handling all the activities
taken various measures for automation of its functions and to run a core banking software smoothly. The Bank has also
services. Most important of these steps are installation of established a 24 Hours Help Desk in IT & MIS Division to
fully integrated online Core Banking Solution (T24 software render operational and technical support to all the online
by Temenos). ABL commenced online banking solution branches instantly. Within February’2016, all the branches
among all the state owned banks for the first time and it has of the bank will be brought under online. Moreover, in near
the highest number of online branches under core banking future, introduction of T24 software will be ensured in the
system. It began in 2010 with two pilot branches and now it services like internet banking, mobile banking etc. and other
has progressed further and as on December 2015, 816 major modern banking facilities to the customers.
branches throughout the country are operating using this
software. BACH & BEFTN
As part of the plan of Bangladesh Bank for automation
of clearing payment system of the country, Bangladesh
Year 2011 2012 2013 2014 2015
Automated Clearing House (BACH) was introduced in
No. of branches the Bank. The two components of BACH – Bangladesh
brought under 54 108 161 309 816 Automated Cheque Processing System (BACPS) &
Online Bangladesh Electronic Fund Transfer Network (BEFTN) are
active in the Bank. A total of 313 branches of the Bank in
It should be mentioned that T-24 software is rated as one of 70 clearing areas of the country have been brought under
the best core banking softwares all over the world. For this BACPS successfully. For this purpose, hardware, MICR
purpose, data center equipped with most modern hardware, cheque scanner and network connectivity have been
database, connectivity and all other facilities was established established in each concerned location. For BACH operation,
in Head office. Besides, a Disaster Recovery Site (DRS) is a sophisticated centralized software has been customized
established in Mohakhali, Dhaka where a true replica of and installed which has facilitated the smooth operation of
Bank’s data center is established under centralized database the system throughout the country. The other component
concept. The hardware related to data center and DRS has BEFTN has been introduced in all branches of the Bank. As
been set up with a capacity to handle all the online branches per Bangladesh Bank instruction, only credit operation has
of the Bank. Again, to handle such a big customer based been allowed in it. The debit operation will begin very soon.
information system, Oracle database was chosen. A Wide With successfull introduction of automated clearing system,
Area Network (WAN) covering 816 branches were setup to customer service has been improved greatly.
facilitate online services. Two redundant data connecting
lines were setup for all these branches. All the modules of T24 BD-RTGS
have been customized as per existing business processes. Bangladesh Real Time Gross Settlement (BD-RTGS) is a
The Core Banking Software (CBS) has four major functional system where large amount of interbank real time (the
areas. These are: actual time during a transaction process) fund transfer (both

119
local and foreign currency) are done electronically. As per primary source of information of the bank. Current news on
Bangladesh Bank rules, the originating bank should settle recruitment, tender, services and products of bank, citizen
the payment within 30 minutes after getting the payment charter, branch location, ATM location, agent banking
instruction from the client. On the other hand, the receiving location and other information related to banking business
bank needs to credit the respective client’s account within can also be found on this website.
30 minutes. BD-RTGS system makes it possible in case of
bank to bank transaction. ATM
In order to be up-to-date with the fast advancing information
Bangladesh Bank has started RTGS (Real Time Gross technology, Agrani Bank Limited started ATM (Automated
Settlement) ‘Go Live’ activity for all the scheduled banks Teller Machine) service in 2002 for the clients named as
in the country from 29-10-2015. By implementing RTGS, e-Cash Debit Card. After that ABL is providing customer
Bangladesh Bank has given the opportunity of real service by Q-Cash brand shared ATM Network through IT
time interbank transaction and its settlement for all the Consultant Limited (ITCL). At present Bank’s customers are
scheduled banks along with the option of transaction in enjoying the benefit of 24 hours cash withdrawal, balance
foreign currency, foreign currency exchange (Gross Currency query, mini statement etc along with other banking facilities
Trading) and treasury bond/bill buying and selling. from around 1408 ATMs of 31 scheduled banks under
Q-Cash shared network. The Bank has approved installation
The required middleware software named `Web-based of 30 ATMs by ABL’s own source & management of which
Xchanging Solutions’ has been installed accordingly 27 ATMs have been lodged and the rest are under process.
by which RTGS inward message is being received from Customers will be able to enjoy services from around 5,500
Bangladesh Bank and outward message is also being sent. ATM Booths of 57 scheduled banks by this Q-Cash network
It will be possible to operate RTGS activities properly in all as all the Scheduled Banks of the country are connected
online branches of the Bank with this software. Fund Transfer with NPSB (National Payment Switch Bangladesh) system of
of minimum BDT 1,00,000.00 and above will be possible Bangladesh Bank. Besides, ABL plans to enrich ATM booth
through BD-RTGS. As per Bangladesh Bank guidelines, the service consisting Visa Card /Master Card facilities.
clients will be facilitated with RTGS system from 10.00 AM
to 04.00 PM. Still now, Bangladesh Bank has not fixed any Introduction of Mobile banking
charges for fund transfer facility through RTGS. Bangladesh ABL is going to implement a system to launch mobile
Bank is expecting that RTGS will be a very popular system banking within a short span of time to bring non-bank
among the people in the near future. population into the banking channel. With this facility any
person having a mobile phone will be able to use his/her
SWIFT number as a bank account.
Agrani Bank Limited provides SWIFT (Society for Worldwide
Inter-bank Financial Telecommunication) facility in its 36 However, Agrani Bank Limited is dedicated to serve the
Authorized Dealer branches to offer services relating to nation and to provide technology based modern banking
foreign exchange, foreign trade transactions (both import services to the customers and relentlessly tries to contribute
and export) and remittance. to the process of achieving our national goal as enshrined in
‘Vision 2021’. So as to fulfill the dream of Digital Bangladesh,
e-GP Bank is going to implement Mobile Banking, Internet
The government of Bangladesh has introduced e-GP Banking and Agent Banking for better customer services.
(Electronic Government Procurement) program under CPTU
(Central Procurement Technical Unit) of Planning ministry. Agent Banking
A number of 291 contractors of 4 purchasing organizations Agrani Bank Limited, in association with DOER, has planned
i.e. RHD, LGED, BWDB and REB can participate in e-tendering to extend its financial and banking services to the door of
by depositing their registration fee, renewal fee, tender unbanked and underbanked areas of Bangladesh through
document fee, bank guarantee etc. from designated 93 agents, which is termed as ‘Agrani Doer Banking’. The
branches of the Bank all over Bangladesh. Proper training project would run under the ‘Agent Banking Guideline’ that
on e-GP has been provided to a large number of employees has recently been formulated by Bangladesh Bank in a bid
to achieve ‘Financial Inclusion’ goal of the nation. Agent
of the Bank. The Bank has voluntarily participated in e-GP
Banking model would help to achieve the following:
program to meet its commitment to serve the nation.
1. Lowering transaction costs for both the customers and
Website bank.
Agrani Bank Limited has an informative website containing 2. Help cover a large geographical area with minimum
description of its various products, services, annual report, cost.
citizen’s charter and other up-to-date information about 3. Cutting administrative overhead off.
the Bank. The website www.agranibank.org serves as a 4. Creating financial awareness.

120
ANNUAL REPORT 2015

Features of Agent Banking: in those areas. Moreover, the project will also be implemented
1. New Account introduction and distribution of account primarily in Union and District areas at more 170 agent
opening form with KYC. locations depending on the commercial importance and
2. Deposit / withdrawal in accounts. prosperity. It is to be noted that the customers will be able
to get the facility of ‘Real Time Transaction’ with ‘Agrani Doer
3. Government benefits (such as old, widow, disability
Banking’ service.
allowance etc) distribution.
4. Loan recovery and disbursement for agriculture and Distribution of SEQAEP Stipend
SME. To inspire the poor and meritorious students from class
5. Installments collection for recurring deposit in Bank. 6 to Class 10, Secondary Education Quality and Access
Enhancement Project (SEQAEP) jointly financed by
6. Utilities bill collection.
ministry of education, Government of People’s Republic of
7. Salary disbursement for educational, industries, Bangladesh and world Bank is being conducted since 1993.
government and non government institutes. Ministry of education, World Bank and SEQAEP authority
supervise this project. Besides distributing stipend to the
Recently Agrani Bank Limited, in collaboration with the
students, different kinds of incentives and financial supports
associated partner ‘DOER’, has implemented “Agent Banking”
are provided through SEQAEP. Through this project, the
service on a pilot basis in two branches of ABL (Shaistagonj
Directorate for Secondary & Higher Secondary Education
Branch, Hobigonj & Pangsha Branch, Rajbari) successfully. At
has been giving away stipend to the students enlisted with
present Agent Banking Software’s (Celloscope) integration
SEQAEP through debit card issued from Agrani Bank Limited
with Core Banking Software (T-24) is established followed
across the country. Some other tuition fees are being
by the guidelines of Bangladesh Bank and the live operation
disbursed to the teachers through all online branches. The
of ‘Agrani Doer Banking’ is beginning in 30 agent locations
main objective of this project is to ensure that students at
primarily from July’2016. The service will be introduced
secondary level do not drop out of education.
immediately in 143 Upazilas as there is no branch of our bank

121
Islami Banking
in Agrani Bank Limited
Islami Banking in Agrani Bank Limited
Agrani Bank Limited on 28/02/2010, inaugurated shariah-
2.1 Mudaraba Savings Account
based islami banking activities in the following five branches
through five seperate windows: 2.2 Mudaraba Term Deposit

a) Islami Banking Window, Amin Court Corp. Branch, Dhaka. 2.3 Mudaraba Special Notice Deposit
b) Islami Banking Window, Gulshan Branch, Dhaka. 2.4 Mudaraba Hajj Savings Deposit
c) Islami Banking Window, Laldighirpar Corp. Branch,
2.5 Mudaraba Special Savings Deposit
Sylhet.
d) Islami Banking Window, Agrabad (J.B) Corp. Branch, 2.6 Mudaraba Mohor Savings Deposit
Chittagong. 2.7 Mudaraba Monthly Profit Scheme
e) Islami Banking Window, Maizdee Court Branch, Noakhali.
2.8 Mudaraba Marriage Savings Deposit
Future Planning for Islami Banking of Agrani Bank 2.9 Mudaraba Housing Deposit Scheme
Limited
Islami banking activities of Agrani Bank Limited has already 2.10 Mudaraba Education Savings Scheme
passed its successful 5 years’ journey. The authority has
2.11 Mudaraba Cash Waqf Deposit Scheme
already taken a decision for online islami banking which is
under process. Besides, attempts are ongoing to increase 2.12 Mudaraba NRB Welfare Deposit Ac.
the number of 10 more windows. It is expected that the
implementation of online islami banking facilities will make 2.13 Mudaraba Savings Bond
it possible to receive islami banking facilities from any
branch of ABL Shariah Based different Investment modes
1. Bai-Murabaha
Islami Banking Products and Services of Agrani Bank 2. Bai-Muajjal
Limited 3. Hire Purchase under Shirkatul Melk
Deposit products
Services
1. Al Wadiah Current Deposit Account
Foreign Remittance, LC Opening, Issuing Guarantee and
2. Mudaraba Deposit Account Quard Hasanah.

Achievements of Islami Banking in last 5 years


Crore Taka

Number of Deposit
Year Total Deposit Number of Investors Total Investment Profit
Accounts

2011 1900 20.99 325 37.53 0.53


2012 2485 96.70 414 46.22 0.75
2013 3082 323.82 433 54.85 8.47
2014 3646 216.02 468 57.53 10.84
2015 4026 207.21 492 58.51 4.27

124
Agrani Agrani
Equity & Investment Agrani SME Financing
Limited Company Limited

Agrani
A Agrani
Exchange
E House Private Remi ance House
Limited,
L Singapore Sdn. Bhd., Malaysia

Agrani Agrani
Exchange Company Remi ance House
(Australia) Pty. Ltd Canada Inc.

Subsidiary Companies
of Agrani Bank Limited
Subsidiary Companies of ABL
Agrani Bank Limited has six subsidiary companies of its 100 depth in capital market as well as potential investment for
percent ownership. Two of them are in Bangladesh and four the company.
are in abroad. The companies are as follows:
Portfolio Management
1. Agrani Equity & Investment Limited Agrani Equity & Investment Limited provides portfolio
management services by considering market fundamentals,
Agrani Bank Limited started to take part in the capital macroeconomic trends, overall behavioral factors &
market operations since it got license from BSEC on 23rd prospective analysis.
March, 2009. Initially its operations were executed under
Merchant Banking Unit of the Bank. On March 16, 2010, The company provides following portfolio services to the
the Bank has formed a subsidiary company named ‘Agrani customers-
Equity & Investment Limited’. It started its operation on 15th
June, 2010 taking all the assets and liabilities of Merchant • Portfolio
Banking Unit of Agrani Bank Limited. • Margin Loan facilities to investors

Vision Financial Advisory Services


To become the market leader in merchant banking Corporate Advisory Service is one of the core activities
operations by acting as a market maker & ensure the of merchant bank. Recently BSEC has started to adopt
development of the capital market by active participation a guideline for the financial advisory service and Agrani
Equity & Investment Limited is planning and developing the
Mission following services for the forthcoming years-
To act as a strong participant for increasing market depth
which will ensure the proper channeling of funds among • Customized instrument designing
banks, NBFI’s & capital market.
• Placement of equity with FIs, NRBs, Banks, Asset
Objective Managers, Mutual Funds etc.
1. Maximize the value creation of the shareholders as well • Private capital raising
as clients. a) Equity
2. Provide a very profound fundamental information base b)Debt
to educate the investors.
c) Hybrid
3. Achieve reliability to market participants by acting as a
• Advisory of private placement of securities
safeguard for the market.
4. To boost the small and medium investors’ awareness • Management advisory
& eagerness and enhance the demand of potential • Arranging activities related to trustees for securities
securities as well. • Arranging credit rating agency related activity
5. To perform operations with high standards of business
ethics. Bangladesh Capital Market Scenario
Stock markets in the country were tremulous and divided
Activities of Agrani Equity & Investment Limited in 2015. In many cases, investors lost money on their
investments as the markets ended the year lower than they
Issue Management started. The markets which had been on recovery mode in
Agrani Equity & Investment Limited primarily focuses on previous two years witnessed a reverse trend in 2015. The
Issue Management service which is the key to develop markets’ poor performance can be attributed to the political
our local industry by public participation through capital turbulence, law and order situation and lack of confidence
market. Issue Management functions include the following: in the markets.

• Initial Public Offering (IPO) of Shares & Bonds The broad market index of Dhaka Stock Exchange, DSEX,
• Repeat Public Offering of Shares and Bonds dropped by 6 percent over the year to finish at 4,629.64 on
• Right Issue of Shares December 31, 2015 which was 4,864.96 on December 30,
2014. The blue-chip index, DS30 produced a yearly negative
• Direct Listing of Shares return of 2.91 percent ending at 1,750.59 on December 31,
• Capital raising by other means 2015 which was 1,803.06 on December 30, 2014.
Underwriting Market capitalization on 31 December 2015 stood at Tk
Along with issue management activities, Agrani Equity 3,159.76 billion, 3.05% lower than that on 30 December 2014
& Investment Limited also take part in underwriting of which was Tk 3,259.25 billion. During 2015 daily average
securities which is a vital part in building confidence & turnover was Tk. 4,325 million and daily average turnover

126
ANNUAL REPORT 2015

Dr. Zaid Bakht is presiding over the fifth annual general meeting of Agrani Equity & Investment Limited, a subsidiary company of ABL.

volume was 111.50 million. Market PE settled at 16.05 on 31 previous year. The operating profit is Tk.20.64 crore in 2015,
December 2015 from 17.77 on 30 December 2014. 47.84% lower compared to Tk.39.57 crore in 2014. The sharp
fall in operating profit is mainly attributed to overall bad
Operational Performance market condition. AEIL scored a negative profit due to heavy
2015 was not as successful in operating activities as was in provisioning for margin loan and unrealized loss.

Summary of the Financial Results 2. Agrani SME Financing Company Limited


Taka in crore
Agrani SME Financing Company Limited was registered with
2015 (Pro- the Registrar of Joint Stock Companies and Firms on October
Particulars 2014
visional) 27 of 2010 which is a 100 percent owned Subsidiary Public
Limited Company of Agrani Bank Limited. The Company
Interest Income 0.37 0.54
is one of the 33 Non-Banking Financial institutions (NBFIs)
Capital Gain 14.33 30.92 currently rendering financial services to the existing
and potential entrepreneurs in Bangladesh. It is for the
Dividend Income 7.20 9.24 development of entrepreneurship and small and medium
Other Income 0.50 0.59 scale labour intensive enterprises to increase the income and
employment for the missing middle eligible entrepreneurs
Total Income 22.39 41.29 with particular emphasis to women entrepreneurs in
the urban, semi-urban and rural areas in the company’s
Operating Expense 1.75 1.72
operational areas.
Operating Profit 20.64 39.57
Objectives
Finance Charge 12.77 12.14 • Develop entrepreneurship and small/medium scale
labour incentive enterprises.
Provision for unrealzed loss 36.95 20.00 • Increase Income and employment for the entrepreneurs.
Provision for Taxes 2.87 4.95 • Promote women entrepreneurs.
• Generate income and support a more equitable income
Net Profit (31.95) 2.48 distribution.

127
• Arrange entrepreneurship development training for • Four other new branches have been included in the
the entrepreneurs before disbursing loan and skill year 2015, one at Natun Bazar, Barisal, at Abdul Hamid
development trainings are arranged for the project Road, Pabna, at Pakundia, Kishorgonj and another one
specific requirement after the disbursement of the loan. in Chandpur.
Geographical Coverage • Five new branches will be included very soon in Comilla,
• Principal Branch situated at Head Office, Dhaka Gazipur, Sunamganj, in Mithamain ,Kishorgonj and in
• 20 Branches in greater Faridpur district. Madhabdi Bus Stand Branch, Narsingdi within March,
• 21 Branches in greater Mymensingh district. 2016.

Dr. Syed Abdul Hamid, FCA is presiding over the 4th Annual General Meeting of Agrani SME Financing Company Limited, a subsidiary company of ABL.

Type of Enterprise to be Financed • Loan range can be changed by the Board of Directors as
All viable enterprises under the following sectors are eligible and when necessary.
for getting finance from the company.
Interest Rate
• Small and medium scale agro-based and agro- • 12 Percent.
supporting industries including food processing and • Another 2 percent service charge is being taken for loan
industries manufacturing and agricultural tools. loss provision fund.
• Textile/Garments related enterprise.
Equitry Share
• Cottage industries.
• Minimum 10 percent in case of enterprise cost up to
• Small scale repair workshop. Tk.1,00,000.
• Small scale rural haulage transport. • Minimum 20 percent in case of enterprise cost above
• Service Organization etc. Tk.1,00,000.
• Other viable enterprises as defined by Bangladesh Bank.
Repayment Period
Company’s Capital • Maximum 5 years.
• Authorized Capital : 500 (Five hundred) crore.
Special features Of the Company
• Paid-up Capital : 100 (One hundred) crore. • Arrange and conduct free training with residential facility
Loan Range for the entrepreneurs.
• Minium TK.50,000 and maximum Tk. 20,00,000 • Give priority to the women entrepreneurs while

128
ANNUAL REPORT 2015

approving loans and imparting training (Skill Tk. 1,000,000.00 whichever is higher will be forfeited in favor
development and awareness training). of the state. Bangladesh Bank and all the commercial banks
• Engage Women development officers for women have taken lot of steps in protecting Money Laundering
entrepreneurs apart from male officers for monitoring and Terrorist Financing. Accordingly, main task of AGEX is to
and other activities as needed by the women motivate Bangladeshi workers and expatriates with the help
entrepreneurs. of Bangladesh High Commission officials in Singapore to send
• Monitor loan utilization closely to ensure timely recovery their hard-earned money through approved institutional
of loans. channels like AGEX complying with the guidelines to protect
• Develop savings habit among the rural people. Money Laundering and Terrorist Financing.

3. Agrani Exchange House Private Limited, Clientele: Over 99 percent remitters of this Remittance
Singapore Company are of Bangladeshi nationals. Majority of the
Agrani Exchange House Private Limited (AGEX) is a clienteles of the Remittance Company are low income
remittance company incorporated in Singapore on January workers of construction sector, shipyard and industrial
04, 2002 under Company Act CAP-50. It is a fully owned sectors. Among others includes engineers, doctors, teachers
subsidiary of Agrani Bank Limited, embarked its journey in and other Bangladeshi expatriates along with those
Singapore on February 08,2002 for catering the long-felt who intend to send money to their friends or relatives in
need of hassle free transfer of money by the Bangladeshi Bangladesh.
expatriates from Singapore. It’s authorized & paid up capital
are SGD 10,00,000.00 and SGD 10,00,000.00 respectively. Types of Currencies involved: This Remittance Company
is receiving SGD solely which is being converted into
Agrani Exchange House Private Limited is operating with its Bangladesh Currency i.e., BDT at the beneficiaries
four branches in Singapore. That four branches are located (Bangladesh) end.
at as follows
i) Serangoon Branch : 5A, Lembu Road, Sinngapore Account opening service: Agrani Exchange House
208444, Tel: 62959730, 62959731 Singapore also helps remitters to open Savings/APS/FDR
account in Bangladesh. In 2015 it opens more than 1,400
ii) Boon Lay Branch : 211 Boon Lay Place # 02-154,
various accounts all over Bangladesh.
Singapore 640221, Tel : 62665226
iii) Jurong East Branch: 135 Jurong Gateway Rd, #02-333, With heightened competition among the market players,
Singapore 600135, Tel: 68991903 and Agrani Exchange House Private Limited, Singapore has put in
iv) Woodlands Branch : Marsiling MRT, BLK 304, Woodlands place a number of strategies to maintain sustainable growth
St. 31 #01-141, Singapore 730304, Tel : 63673521. in all indicators during past years to remain market leader in
Singapore. The real time online money transfer solution of the
Fax: 62950595, E-mail: agraniex@singnet.com.sg
Company allows the beneficiaries to receive remittance from
Hundi is looming large although it is punishable all locations of Agrani Bank Limited instantly which greatly
offence all over the world. Bangladesh Government has been encouraged the remitters to send money through this
promulgated Anti Terrorism Act 2009, amended in 2013 AGEX House. The Company is continuously putting all its
& Money Laundering Prevention Act on Feb 20, 2012 with effort to remain compliant under the regulatory guidelines
a provision of minimum 4 years and maximum 12 years of and to develop standard of services to ensure robust growth
imprisonment and double the amount/ property involved or in times ahead.

A growth chart of the Company upto 2015 since inception


Growth of
No. of SGD BDT Growth of Remittance Growth of Remittance
Year Remittance Amount
Remittance (Million ) (Million) Number Amount S$
BDT
Amount in Amount in
in Number in % % in %
Million Million

2015 312381 203.25 11540.35 -11384 -3.51 -1.29 -0.63 -995.35 -7.94

2014 323765 204.54 12535.70 36,091 12.55% 20.34 11.04% 1,001.24 8.68%

2013 287,674 184.20 11,534.46 77,596 36.94% 29.51 19.08% 1,364.09 13.41%

2012 210,078 154.69 10,170.37 57,273 37.48% 40.99 36.05% 3,444.56 51.21%

129
Growth of
No. of SGD BDT Growth of Remittance Growth of Remittance
Year Remittance Amount
Remittance (Million ) (Million) Number Amount S$
BDT
Amount in Amount in
in Number in % % in %
million million

2011 152,805 113.70 6,725.81 20,790 15.75% 9.63 9.25% 1,436.74 27.16%

2010 132,015 104.07 5,289.07 10,032 8.22% (4.09) (3.78%) 184.27 3.61%

2009 121,983 108.16 5,104.80 8,090 7.10% 4.59 4.43% 81.70 1.63%

2008 113,893 103.57 5,023.10 16,081 16.44% 14.61 16.42% 964.50 23.76%

2007 97,812 88.96 4,058.60 1,052 1.09% 3.50 4.10% 371.80 10.08%

2006 96,760 85.46 3,686.80 19,174 24.71% 16.25 23.48% 1,046.60 39.64%

2005 77,586 69.21 2,640.20 27,365 54.49% 26.58 62.35% 1,167.00 79.22%

2004 50,221 42.63 1,473.20 15,281 43.73% 11.00 34.78% 420.00 39.88%

2003 34,940 31.63 1,053.20 16,023 84.70% 10.97 53.10% 378.50 56.10%

2002 18,917 20.66 674.70 - - - - - -

Growth of SGD Amount of Remittance

203.25 204.54

184.20 Figure in SGD million

154.69

113.70
104.07 108.16 103.57
88.96 85.46
69.21

42.63
31.63

2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

4. Agrani Remittance House Sdn Bhd, Malaysia House Sdn Bhd, Malaysia as a subsidiary of ABL, commenced
Agrani Bank Limited (ABL) started its journey in Malaysia its business with one branch in the capital city at 14-16, Jalan
in 2006 upon approval from the Ministry of Finance of the Hang Kasturi, 50050, Kuala Lumpur and is keeping a good
Government of the Peoples’ Republic of Bangladesh to pace in increasing remittance business in Malaysia.
meet the long-felt desire of a huge number of Bangladeshi
expatriates with a view to remitting money safely & Remittance business in all over the globe has been suffering
conveniently through banking channel. Agrani Remittance due to stronger US Dollar, recession in some economic zones

130
ANNUAL REPORT 2015

including China & Russia and unexpected currency war in transfer solution of the Company allows the beneficiaries to
the last few months. Notwithstanding, Agrani Bank Ltd. receive remittance from any locations of Agrani Bank Limited
still continues its development in remittance procurement in Bangladesh instantly which greatly been encouraged the
remarkably. Agrani Remittance House (ARH) is contributing remitters to send money through the House.
significantly to this Herculean task by sending bulk of
remittances with opening two new branches in two big Agrani Exchange Company (Australia) Pty. Ltd. has
industrial cities – Klang & Rawang of Malaysia in 2015. undertaken massive action plan for accelerating its
remittance business by implementing innovative marketing
Mentionable that five branches of ARH are successfully strategies and technology based systems. Online web based
giving assistance to Bangladeshi migrants in sending money, remittance system will be implemented soon to facilitate the
opening bank account with different branches of ABL, in remitters to remit the money at anytime from anywhere of
Bangladesh and in buying Wage Earners Development Australia.
Bond (WEDB) of Bangladesh Government. ARH remitted
BDT 415.58 crore in 2015. It has already established drawing Agrani Remittance House Canada Inc. : A glimpse
arrangement with Janata Bank Ltd. another State Owned After being approved by Bangladesh Bank, ABL opened a
Commercial Bank of Bangladesh. subsidiary, named Agrani Remittance House Canada Inc.
(ARHC Inc.), a federally incorporated company, registered
ARH has a business plan in 2016 to expand its business under the Canada Business Corporation Act of Industry
by opening five more branches in Malaysia, establishing ,Canada, as on May 11, 2012 with an objective to serve
drawing arrangement with other NCBs & NGOs and
the expatriate Bangladeshi community in Canada. The
entering a new era by opening new corridors in providing
company is able to do business all over Canada in the same
remittance services to Nepal, Indonesia, Philippines, India
registration. To comply with the Money Service Business
and Pakistan.
(MSB) regulations of Canada, ARHC Inc. is also registered with
The company is very much committed to serve the the Financial Transactions and Reporting Analysis Centre of
Bangladeshi expatriates in Malaysia maintaining the Canada (FINTRAC).
international level of efficiency, quality & customer service
and to increase business with multi-dimensional approach The Board of Directors of Agrani Remittance House Canada
that will ensure the sustainable development of the Inc. is constituted with four members among them, the
company in times ahead. Chairman is nominated from the Board of Directors of ABL.
The other members are the Managing Director & CEO of
Agrani Exchange Company (Australia) Pty. Limited. ABL, a Deputy Managing Director of ABL and One Canadian
Agrani Exchange Company (Australia) Pty. Ltd. started its citizen born in Bangladesh. Mohammed Khurshed Alam,
operation on April 10, 2014 to satisfy the long-felt demand Assistant General Manager of ABL has been appointed as
of the expatriate Bangladeshis in Australia. It is a fully Director & CEO of ARHC Inc.
owned subsidiary company of Agrani Bank Limited. Agrani
Exchange is located on 2/168-76 Haldon Street, Lakemba, ARHC Inc. is strategically located at 2960 Danforth Avenue,
NSW 2195, Australia. Most of the Bangladeshi people live in Toronto, Ontario, Canada; the highest Bangladeshi concen-
this locality in Australia. trated area of Canada. Within a short span of time, ARHC Inc.
has achieved a substantial progress and remitted 2.7 million
This year Agrani Exchange is about to complete two years Canadian Dollars (CAD).
of its journey. Since inception, the company has been trying
to provide services to Bangladeshi expatriates to send their As the business is increasing, more and more people are
hard earned money to Bangladesh safely through legal showing interest to send their hard earned money through
channel. In the meantime, this exchange house has remitted legal banking channel. The Board of Directors of ARHC Inc.
Tk. 828 million from Australia to Bangladesh. The Company are actively considering for opening its second location in
also assists Bangladeshi expatriates to open bank account Montreal, Quebec (the second largest city of Canada) and in
with different branches of Agrani Bank Limited and motivate near future, in the west coast of Canada. We are also trying to
them to invest in different types of government bonds. appoint agents in different cities of Canada to collect more
The exchange house is growing remarkably over the years remittance.
maintaining the strict regulatory compliances with both
originating and destination end. Apart from the regular remittance, ARHC Inc. is also helping
our community for opening all types of bank accounts, FDR,
Agrani Exchange Company (Australia) Pty. Ltd. followed a Wage Earner’s Bond, USD Premium Bond, ABS, APS etc. and
number of strategies to maintain sustainable growth to offering advisory services for investment in Bangladesh with
remain market leader in Australia. The real time online money ABL.

131
ANNUAL REPORT 2015
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report evaluates and analyzes Bank’s overall operational mv‡ji mv‡_ 2015 mv‡j e¨vs‡Ki GKwU Zzjbvg~jK wPÎmn 2015
performance of 2015 compared to that of 2014. I would mv‡ji mvwe©K e¨emvMZ cwiw¯’wZ Ges cwiPvjbv cwil‡`i Kg©Kv‡Ûi
request you to read the information and analysis in g~j¨vqb I we‡kølY †`L‡Z cv‡eb| †h mg¯Í Z_¨ Ges we‡kølY G‡Z
connection with the audited financial statements presented
mwbœ‡ewkZ n‡q‡Q Zv †ckK…Z Avw_©K weeiYxi m‡½ wgwj‡q covi Rb¨
herewith. The report presents a concise and overall
performance of the Bank in perspective of global economic
Aby‡iva KiwQ| G cÖwZ‡e`‡b wek¦ A_©bxwZ Ges evsjv‡`‡ki A_©bxwZi
scenario and Bangladesh economy. †cÖ¶vc‡U e¨vs‡Ki GKwU msw¶ß A_P mvwe©K wPÎ Lyu‡R cvIqv hv‡e|

Global Economic Scenario wek¦ A_©‰bwZK cwiw¯’wZ


World economy, though recovered its growth trend, is not wek¦ A_©bxwZ g›`v KvwU‡q cÖe„w×i avivq wdi‡jI GLbI mymsnZ
yet consolidated. Although the pace of economic recovery nqwb| DbœZ †`kmgy‡ni A_©bxwZ cybiæ×v‡ii MwZaviv kw³kvjx
of the developed countries is strong, the growth of emerging n‡jI weKvkgvb evRvi e¨e¯’vi I Dbœqbkxj †`kmg~‡ni A_©bxwZi
market and developing countries has been reduced. Huge
cÖe„w× n«vm †c‡q‡Q| Rv¡jvwb †Z‡ji eo ai‡bi g~j¨ cZb, gvwK©b
price decline of fuel and abundance of US Dollar has affected
the pace of the world economic restoration. Reduction Wjv‡ii DcwPwZmn KwZcq Dcv`vb ˆewk¦K A_©bxwZi MwZ mÂvi‡K
of the oil price helps to increase the supply and economic cÖfvweZ K‡i‡Q| R¡vjvwb †Z‡ji g~j¨ n«vm GKw`‡K ‡hgb mieivn
development as well as recession of investment from evwo‡q A_©bxwZi Dbœq‡b mnvqZv K‡i‡Q, ‡Zgwb Avevi R¡vjvwb †Zj
fuel exporting countries has increased the risk of global ißvwbKviK ‡`kmg~‡ni wewb‡qvM n«v‡mi d‡j wek¦e¨vwc A_©‰bwZK
economic stability. Besides, it has been apprehended that w¯’wZkxjZvi SuzwK evwo‡q‡Q| GQvov, gvwK©b Wjv‡ii DcwPwZi d‡j
the abundance of US Dollar may harm the economy of
FY MÖnYKvix †`kmgyn ÿwZMÖ¯Í n‡Z cv‡i e‡j AvksKv Kiv n‡q‡Q|
debtor countries.

IMF forecast 3.5 percent and 3.8 percent global economic 2015 mv‡j wek¦ A_©bxwZi cÖe„w× 3.5 kZvsk I 2016 mv‡j 3.8
growth in 2015 and 2016. Growth of USA, better than kZvs‡k `uvov‡Z cv‡i e‡j AvBGgGd Gi c~e©vfvm i‡q‡Q| wek¦
assumption, has greatly influenced the trend of the world A_©bxwZi cÖe„w×i avivq hy³iv‡ói cÖZ¨vkvi †P‡q `„p cÖe„w× AR©b h‡_ó
economic growth. Though Eurozone emerged from negative f~wgKv †i‡L‡Q| BD‡iv A‡ji cÖe„w× 2013 mv‡j FYvZ¥K Ae¯’v †_‡K
growth of 2013 to positive in 2014 which was below 1.0 †ewi‡q Avm‡jI Zv 2014 mv‡j 1.0 kZvs†ki wb‡P i‡q‡Q Ges 2015
percent and is assumed to be 1.5 percent in 2015. It is mv‡j 1.5 kZvs‡k DbœxZ n‡e e‡j Avkv Kiv n‡q‡Q| Rvcv‡bi A_©bxwZ
expected that the economy of Japan will exit from negative 2014 mv‡ji FYvZ¥K Ae¯’v †_‡K †ewi‡q 2015 mv‡j 1.0 kZvs†k
growth of 2014 to positive in 2015 by 1.0 percent increase. DbœxZ n‡e e‡j Avkv Kiv n‡q‡Q| 2015 mv‡j Px‡bi cÖe„w× 6.8
China’s economic growth in 2015 was 6.8 percent and seems kZvsk Ges 2016 mv‡j 6.3 kZvsk n‡Z cv‡i| fvi‡Zi cÖe„w× 2015
to be 6.3 percent in 2016. India’s growth has been forecast to
I 2016 mv‡j 7.5 kZvs‡k _vK‡e e‡j c~ev©fvm Kiv n‡q‡Q|
be 7.5 percent in 2015 and 2016.

The Macroeconomic Situation of Bangladesh evsjv‡`‡ki mvgwóK A_©‰bwZK cwiw¯’wZ


Despite world economic recession, Bangladesh has wek¦ A_©‰bwZK g›`vi g‡a¨I evsjv‡`k wg‡jwbqvg †W‡fjc‡g›U
successfully achieved MDG’s and became able to increase ‡Mvjmg~n AR©‡b mvdj¨ †`wL‡q‡Q Ges RvZxq Avq I ev‡RU eivÏ
national income and budget allocation. Bangladesh has now D‡jøL‡hvM¨ nv‡i e„w× Ki‡Z mg_© n‡q‡Q| evsjv‡`‡ki DËiY N‡U‡Q
been uplifted from lower income to a lower-middle income wb¤œ Avq †_‡K wb¤œ ga¨g Av‡qi †`‡k| bvix Dbœqb, Z_¨ cªhyw³, K…wl,
country. Women development, information technology,
agriculture, industry, education and health. sectors
wkí, wkÿv, ¯^v¯’¨mn wewfbœ Lv‡Z ‡`‡ki e¨vcK DbœwZ AwR©Z n‡q‡Q
developed substantially which will enable Bangladesh to hv 2021 mv‡ji g‡a¨ evsjv‡`k‡K GKwU ga¨g Av‡qi †`‡k cwiYZ
become a middle income country within 2021. Ki‡e|

Economic Growth A_©‡bwZK cÖe„w×


According to assessment of the Bangladesh Bureau of evsjv‡`k cwimsL¨vb ey¨‡iv-Gi wnmve Avbyhvqx 2014-2015 A_©eQ‡i
Statistics (BBS), GDP growth in the fiscal year 2014-2015 wRwWwc cÖe„w× `uvwo‡q‡Q 6.51 kZvsk| MZ 2012-2013 I 2013-

134
ANNUAL REPORT 2015

stood at 6.51 percent. GDP growth rate were 6.01 and 6.06 2014 A_©eQ‡i wRwWwc cÖe„w×i nvi wQj h_vµ‡g 6.01 I 6.06
percent respectively in the fiscal year 2012-2013 and 2013-
2014. GDP per head and per capita income are increasing
kZvsk| gv_vwcQz wRwWwc Ges gv_vwcQz RvZxq Avq µgvš^‡q e„w×
continuously. GDP per head in the previous FY 2013-14 was cv‡”Q| MZ 2013-14 A_©eQ‡i gv_vwcQz wRwWwc wQj 1,110 gvwK©b
1110 US Dollar which is now increased to 1235 US Dollar in Wjvi, PjwZ A_©eQ‡i hv e„w× †c‡q `uvwo‡q‡Q 1,235 gvwK©b Wjv‡i|
the current fiscal year. Per capita income in the last fiscal year
was 1184 US Dollar which amounted to 1316 US Dollar in the MZ A_©eQ‡i gv_vwcQz RvZxq Avq wQj 1,184 gvwK©b Wjvi hv PjwZ
current fiscal year. A_©eQ‡i †e‡o `uvwo‡q‡Q 1,316 gvwK©b Wjvi|
Among big sectors, the growth rate of agriculture, industry 2014-2015 A_©eQ‡i wRwWwc-†Z e„nr LvZmg~‡ni g‡a¨ K…wl, wkí
and service sector was 3.04 percent, 9.60 percent and 5.83 I †mev Lv‡Zi cÖe„w× h_vµ‡g 3.04 kZvsk, 9.60 kZvsk I 5.83
percent respectively in the fiscal year of 2014-2015. The
kZvsk| c~e©eZ©x A_©eQ‡i G cÖe„w×i nvi wQj h_vµ‡g 4.37 kZvsk,
growth in those sectors in the preceding fiscal year were
4.37 percent, 8.16 percent and 5.62 percent respectively. 8.16 kZvsk I 5.62 kZvsk| g¨vbyd¨vKPvwis Lv‡Z MZ A_©eQ‡ii
Manufacturing sector growth compared to last year’s 8.77 8.77 kZvs‡ki Zzjbvq e„w× ‡c‡q PjwZ A_©eQ‡i 10.32 kZvs‡k
percent has been estimated to be 10.32 percent this year. `uvov‡e e‡j cÖv°jb Kiv n‡q‡Q| 2013-14 A_©eQ‡i wRwWwc-‡Z K…
The contribution of agriculture, industry and service sectors wl, wkí I †mev Lv‡Zi Ae`vb wQj h_vµ‡g 16.50 kZvsk, 29.55
in the GDP of fiscal year 2013-2014 was 16.50 percent, 29.55
percent, 53.95 percent respectively. The contribution of these
kZvsk I 53.95 kZvsk| 2014-15 A_©eQ‡ii mvgwqK wnmv‡e G
three sectors in the fiscal year 2014-15 temporarily stands wZbwU e„nr Lv‡Zi Ae`vb `uvwo‡q‡Q h_vµ‡g 15.96 kZvsk, 30.42
15.96 percent, 30.42 percent and 53.62 percent respectively. kZvsk Ges 53.62 kZvsk|

Savings & Investment mÂq I wewb‡qvM


A provisional estimation shows that domestic savings mvgwqK wnmve Abyhvqx 2014-15 A_©eQ‡i †`kR mÂq I RvZxq
and national savings rates in the 2014-15 fiscal year are
22.30 percent and 29.01 percent of GDP growth which m‡qi nvi cªv°jb Kiv n‡q‡Q h_vµ‡g wRwWwc-i 22.30 kZvsk
were 22.09 percent and 29.23 percent respectively in the I 29.01 kZvsk hv 2013-14 A_©eQ‡i wQj h_vµ‡g wRwWwc-i
previous fiscal year 2013-2014. As a percentage of GDP
in the current fiscal year compared to last fiscal year, the
22.09 kZvsk I 29.23 kZvsk| A_©vr PjwZ A_©eQ‡i wRwWwc-i
domestic savings has been decreased slightly. On the other kZKiv nv‡i †`kR mÂq MZ eQ‡ii Zzjbvq wKQzUv K‡g‡Q| Ab¨w`‡K
hand, private investment in the fiscal year 2014-2015 as a 2014-15 A_©eQ‡i †emiKvwi wewb‡qvM wRwWwc-i kZKiv nv‡i cÖvq
percentage of GDP remains almost unchanged. However,
overall investment has increased as a result of increased AcwiewZ©Z i‡q‡Q| Z‡e, miKvwi wewb‡qvM e„w×i d‡j mvwe©K wewb‡qvM
government investment. e„w× †c‡q‡Q|

Inflation g~j¨ùxwZ
The average inflation rate stood at 6.20 percent in June 2015. Ryb 2015-†Z Mo g~j¨ùxwZi nvi `uvwo‡q‡Q 6.20 kZvsk| AvšÍR©vwZK
The reduction of fuel and other commodity prices in the evRv‡i R¡vjvwb †Z‡ji g~j¨mn Ab¨vb¨ cY¨g~j¨ n«vm cvIqv Ges
international market and satisfactory domestic production Af¨šÍixY Drcv`b cwiw¯’wZ m‡šÍvlRbK nIqvq mvwe©K g~j¨ùxwZ n«vm
being satisfactory has decreased overall inflation.
†c‡q‡Q|
Export Sector ißvwb LvZ
Currently, Bangladesh is earning 31.2 billion US Dollar by eZ©gv‡b 196 wU †`‡k 729 wU cY¨ ißvwb K‡i †`‡ki Avq n‡”Q 31.2
exporting 729 commodities to 196 countries. The growth
rate of the two main export commodities i.e. readymade wewjqb gvwK©b Wjvi| 2014-15 A_©eQ‡ii RyjvB-gvP© mg‡q cªavb
garments and knitware is 3.47 percent and 3.64 percent `yÕwU cY¨, ˆZwi †cvkvK Ges bxU&Iq¨vi ißvwbi cÖe„w× nq h_vµ‡g
respectively in the month July-March of 2014-2015. The 3.47 kZvsk Ges 3.64 kZvsk| Ab¨vb¨ c‡Y¨i g‡a¨ ivmvqwbK
growth rate of other commodities such as chemical products
(20.18 percent), leather products and footwear (14.81 `ªe¨ (20.18 kZvsk), PvgovRvZ cY¨ I cv`yKv (14.81 kZvsk),
percent), handicraft products (17.51 percent), engineering n¯Íwkí `ªe¨ (17.51 kZvsk) I cÖ‡KŠkj cY¨ (30.68 kZvsk) cÖe„w×
products (30.68 percent) is mentionable. On the contrary, the D‡jøL‡hvM¨| Aciw`‡K wngvwqZ Lv`¨ (6.72 kZvsk), †c‡Uªvwjqvg
export revenue from frozen foods (6.72 percent), petroleum
DcRvZ `ªe¨ (61.60 kZvsk), Pvgov (20.26 kZvsk) I KuvPv cvU
by-products (61.60 percent), leather (20.26 percent) and raw
jute (9.59) has decreased. (9.59 kZvsk) ißvwb Avq n«vm †c‡q‡Q|

Import Sector Avg`vwb LvZ


In the fiscal year 2014-15, the total import expenditure was 2014-15 A_©eQ‡i †gvU Avg`vwb e¨‡qi cwigvY `uvwo‡q‡Q 45.19
45.19 billion US Dollar which shows an increase of more than wewjqb gvwK©b Wjvi hv c~e©eZ©x eQ‡ii GKB mg‡qi Zzjbvq 11.26
11.26 percent compared to the same period of the previous kZvsk †ewk| cY¨wfwËK Avg`vwbi †ÿ‡Î †`Lv hvq †h, RyjvB-

135
fiscal year. In case of goods-based import, the growth of ‡diªæqvwi 2014-15 Gi ga¨eZ©x mg‡q c‡Y¨i Avg`vwb cÖe„w× wQj
goods import stood at 15.96 percent in the mid-time of
July-February 2014-15. The growth of import of capital 15.96 kZvsk| g~jabx c‡Y¨i Avg`vwb cÖe„w× wQj 10.47 kZvsk hvi
goods posted to 10.47 percent which includes the growth of g‡a¨ K¨vwcUvj †gwkbvwii Avg`vwb cÖe„w× 30.38 kZvsk| G mg‡q
import of capital machineries of 30.38 percent. In the mean
time, the growth of consumer’s goods’ import was 6.16 †fvM¨c‡Y¨i Avg`vwb cÖe„w× 6.16 kZvsk g~jab hš¿cvwZi Avg`vwb
percent. Increase of capital machinery import indicates the e„w× wewb‡qvM cwiw¯’wZi DbœwZ wb‡`©k K‡i|
improvement of investment scenario.

Expatriate Employment & Remittances ‰e‡`wkK Kg©ms¯’vb I †iwgU¨vÝ


In the year 2015, a total of 5,55,881 Bangladeshis went abroad 2015 mv‡j †gvU 5,55,881 Rb evsjv‡`wk ‰e‡`wkK Kg©ms¯’v‡bi
for employment which is 30.58 percent higher than the D‡Ï‡k¨ we‡`‡k hvq hv c~e©eZ©x eQ‡ii GKB mg‡qi Zzjbvq 30.58
same period of the previous year. In this year, the amount of
remittance inflow grows up to 15,270.99 million USD which kZvsk †ewk| G eQ‡i †iwgU¨vÝ cÖev‡ni cwigvY `uvwo‡q‡Q 15,270.99
is 2.20 percent more than the same period of the previous wgwjqb gvwK©b Wjvi hv c~e©eZx© eQ‡ii Zzjbvq 2.20 kZvsk †ewk|
year. The Government continues to take various initiatives to miKvi KZ©…K ‰e‡`wkK Kg©ms¯’vb Z_v kÖwgK ißvwb e„w×i j‡ÿ¨ wewfbœ
expedite the overseas employment for export of manpower.
The remarkable steps of those are - continuous diplomatic D‡`¨vM MÖnY Ae¨vnZ i‡q‡Q| Gi g‡a¨ D‡jøL‡hvM¨ c`‡ÿc n‡jv -
efforts for exploring new labor markets, reinforcement of bZyb kÖgevRvi AbymÜv‡b K~U‰bwZK cÖ‡Póv Ae¨vnZ ivLv, cÖ‡qvRbxq
the activities of the ‘Probashi Kalyan Bank’ for necessary Avw_©K mnvqZv cÖ`v‡bi D‡Ï‡k¨ cÖevmx Kj¨vY e¨vsK Gi Kvh©µg
financial incentives and extending efforts to build up skilled
manpower in compatible with international labor market
Av‡iv †Rvi`vi Kiv, AvšÍRv©wZK kÖgevRv‡ii Pvwn`vi mv‡_ msMwZc~Y©
standard etc. `ÿ Rbkw³ M‡o †Zvjvi cÖ‡Póv Ae¨vnZ ivLv BZ¨vw`|

Agriculture Sector K…wl LvZ


In 2014-15, the production of cereal was 384.18 lac metric 2014-15 mv‡j Lv`¨km¨ Drcv`b n‡q‡Q 384.18 jÿ †gwUªK
ton. Incentive of TK.7,101 crore has been provided with Ub| Drcv`‡bi AMÖhvÎv Ae¨vnZ ivL‡Z 2014-15 A_©eQ‡i cÖvq 7
a view to maintain the forward pace of production. For nvRvi 101 †KvwU UvKv fZ©ywK †`qv n‡q‡Q| wbivc` Lv`¨ gRy` M‡o
building the safety stock of food 15, 46,939 metric ton of rice †Zvjvi j‡ÿ¨ 2015 mv‡j Pvj I Mg wgwj‡q 15 jÿ 46 nvRvi 939
and wheat is stored in 2015. 64 varieties of crops have been †gwUªK Ub Lv`¨km¨ gRy` i‡q‡Q| Liv,eb¨v, jeYv³Zv mnbkxjmn
introduced which are drought and flood resistant and also
resistant to diseases and salinity. Safe crop production has
†ivM cÖwZ‡ivaÿg Ges D”P djbkxj 64 wU dm‡ji RvZ Aegy³
also become possible as the farmers are being encouraged Kiv n‡q‡Q| K…lK‡`i ‰Remvi I cÖvK…wZK evjvBbvkK c×wZ e¨env‡i
to utilize organic manure and natural pesticides.The average DrmvwnZ Kivi d‡j wbivc` dmj Drcv`bI m¤¢e n‡”Q| eZ©gv‡b
growth of fish production at present is 6.23 percent. grm¨ Drcv`‡b Mo cÖe„w×i nvi 6.23 kZvsk |

Power & Energy Sector we`¨yr I R¦vjvwb LvZ


Epoch-making success has achieved in the power sector of ‡`‡k we`y¨r Lv‡Zi hyMvšÍKvix mvdj¨ AwR©Z n‡q‡Q| 2015 mv‡j †`‡k
the country. The generation of electricity has been increased
to maximum 8,177 megawatt in 2015 in the country and per
m‡e©v”P we`y¨r Drcv`b `uvovq 8,177 †gMvIqvU Ges gv_vwcQz we`y¨r
head electricity production goes upto 371 kilowatt hour this Drcv`b 371 wK‡jvIqvU AvIqv‡i DbœxZ n‡q‡Q|
year.

Communication Infrastructure ‡hvMv‡hvM AeKvVv‡gv


The main construction work and river training of 6.15 gvIqv-RvwRiv c‡q‡›U 6.15 wK‡jvwgUvi `xN© cÙv ‡mZzi g~j †mZy wbg©vY
kilometre long Padma Bridge has already begun at Mawa- Ges b`xkvm‡bi KvR ïiæ n‡q‡Q| Gi Rb¨ e¨q n‡e 28,793.39
Jajira point. About TK. 28793.39 crores or USD 3.70 Billion
will be spent for this Purpose.The Bridge will directly
†KvwU UvKv ev 3.70 wgwjqb gvwK©b Wjvi| †mZzwU †`‡ki `wÿY-
connect Dhaka with 19 districts of south-western region cwðgv‡ji 19wU †Rjv‡K XvKvi ms‡M mivmwi hy³ Ki‡e| cÖvq 22
of the country. Construction of 20 km long metro rail line nvRvi †KvwU UvKv e¨‡q DËiv †_‡K gwZwSj ch©šÍ 20 wK‡jvwgUvi `xN©
from Uttara to Motijheel has been started at the cost of TK. †g‡Uªv‡ij wbg©v‡Yi KvR ïiæ n‡q‡Q| PÆMÖv‡gi KY©dzjx b`xi Zj‡`k
22 thousand crore. Contract has been signed with China to
w`‡q cÖvq 3.40 wK‡jvwgUvi `xN© Uv‡bj wbg©v‡Y Px‡bi mv‡_ Pzw³ ¯^vÿi
build 3.40 km. long tunnel under river base of the Karnaphuly
of Chittagong. The upgradation of four lanes of 192 kms of n‡q‡Q| XvKv-PÆMÖvg gnvmo‡Ki 192 wK.wg. Pvi‡j‡b DbœxZKi‡Yi
Dhaka-Chittagong highway is completed. Bus service has KvR †kl n‡q‡Q| 2015 mv‡j KjKvZv-XvKv-AvMiZjv Ges XvKv-
been introduced in the route of Kolkata-Dhaka-Agartala and wkjs-‡MŠnvwU iæ‡U evm mvwf©m Pvjy n‡q‡Q| cvqiv b`xi †gvnbvq Mfxi
Dhaka-Shilong-Gouhati in 2015. Six thousand acres of land
mgy`ª e›`i wbg©v‡Yi j‡ÿ¨ g~j AeKvVv‡gv M‡o †Zvjvi Rb¨ 6 nvRvi
has been purchased to build the main infrastructure of the
deep seaport at the outlet of the Paira River and TK. 1,128.43 GKi RvqMv µq Kivmn 1,128 †KvwU 43 jÿ UvKvi cÖKí Aby‡gv`b
crore has been allotted in the project. †`qv n‡q‡Q|

136
ANNUAL REPORT 2015

Science and Information Technology Sector weÁvb I Z_¨cÖhyw³ LvZ


Three contracts have been signed with contractors specified 2,400 †gMvIqvU we`y¨r Drcv`b ÿgZvm¤úbœ iƒccyi cvigvYweK
by the Russian Government for implementing the project we`y¨r †K›`&ª ¯’vcb cÖKí ev¯Íevq‡bi j‡ÿ¨ ivwkqv miKvi wba©vwiZ
of Ruppur Neuclear Electricity Plant capable of producing
2400 megawatt electricity. Department of Information and
wVKv`v‡ii mv‡_ 3wU Pzw³ ¯^vÿwiZ n‡q‡Q| Z_¨ I †hvMv‡hvM cÖhyw³
Communication Technology has established connectivity in wefvM †Rjv/Dc‡Rjv ch©v‡q 18,130 wU miKvwi Awd‡m Kv‡bw±wfwU
18,130 government offices in different zillas and upazillas. ¯’vcb K‡i‡Q| Ryb 2015 ch©šÍ †gvevBj MÖvnK msL¨v Ryb 2015
The number of mobile customers and internet users upto ch©šÍ 13.02 †KvwU I B›Uvi‡bU Gi MÖvnK msL¨v cÖvq 5.47 †KvwU‡Z
June 2015 reaches 13.02 crores and 5.47 crores respectively. †cuŠ‡Q‡Q|
Environment Sector cwi‡ek LvZ
Bangladesh is recognized as a role model and leading wek¦ cwi‡ek iÿvq evsjv‡`‡ki Ae¯’vb GKwU †ivj g‡Wj Ges
country for conserving the environment of the earth. Eight †bZ„Z¡`vbKvix †`k wn‡m‡e| ‡`‡ki 72 kZvsk wkí KviLvbvq BwUwc
thousand biogas plants have been set up along with ETP
in 72 percent factories and fifteen lac high quality stoves
¯’vcbmn 8 nvRvi ev‡qvM¨vm cø¨v›U ¯’vcb Ges 15 jÿ DbœZ P~jv weZiY
have been distributed. Bangladesh, as the first developing Kiv n‡q‡Q| Dbœqbkxj †`k wn‡m‡e evsjv‡`kB cÖ_g Rjevqy cwieZ©b
country, has founded a trust fund with own source to face †gvKv‡ejvq wbR¯^ A_©vq‡b GKwU Uªv÷ dvÛ MVb K‡i‡Q| cwi‡ekevÜe
the adverse change of climate. It has been made mandatory cvU Ges cvURvZ c‡Y¨i e¨envi wbwðZKi‡Yi j‡ÿ¨ avb, Pvj, Mg,
to use jute bags for packing rice, paddy, wheat, maize,
fertilizer and sugar etc for ensuring the use of eco-friendly
fzÆv, mvi, wPwb ‡gvoKxKi‡Y cv‡Ui e¨vM e¨envi eva¨Zvg~jK Kiv
jute and jute related goods and products. n‡q‡Q|

Education Minister Mr. Nurul Islam Nahid, MP, (middle) is inaugurating the programme for distribution of stipend to HSC students through Mobile
Banking where Dr. Syed Abdul Hamid, FCA, Managing Director & CEO of ABL and Professor Fahima Khatun, Director General of DSHE are also seen.

Industry Sector wkí LvZ


The growth of minerals and mining sector substantially goes 2014-15 A_© eQ‡i mvwe©K wkí (Broad Industry) Lv‡Zi g‡a¨
upto 7.48 percent among overall broad industry in FY 2014- LwbR I Lbb Lv‡Zi cÖe„w×i nvi e¨vcK e„w× †c‡q 7.48 kZvsk
15 which was 4.68 percent in FY 2013-14. The growth has `uvwo‡q‡Q hv 2013-14 A_©eQ‡i wQj 4.68 kZvsk| e„nr I gvSvwi
increased in both subsectors of big and medium industries
wkí Ges ÿz`ªvqZb wkí Dfq DcLv‡ZB MZ A_©eQ‡ii cÖe„w×i nv‡ii
and small industries comparing to that of previous year.
Zzjbvq PjwZ A_©eQ‡i cÖe„w×i nvi e„w× †c‡q‡Q| mvgwqK wnmve
According to a provisional statement, the growth stood at
10.24 percent and 10.70 percent respectively which was Abyhvqx G `yB DcLv‡Z cÖe„w×i nvi `uvwo‡q‡Q h_vµ‡g 10.24 kZvsk
9.32 percent and 6.33 percent respectively in the previous Ges 10.70 kZvsk hv MZ 2013-14 A_©eQ‡i wQj h_vµ‡g 9.32
FY 2013-14. kZvsk Ges 6.33 kZvsk|

137
Education Secretary Mr. Nazrul Islam Khan is seen in a photo session after inaugurating the distribution programme of stipend to the
students through Mobile Banking.

Service Sector ‡mev LvZ


It has been estimated in the FY 2014-15 that the growth 2005-06 A_©eQ‡ii wfwË g~‡j¨ mvwe©K †mev (Broad Service)
rate will increase in almost all sectors of broad service Lv‡Zi AšÍf©z³ cÖvq mKj Lv‡ZB cÖe„w×i nvi c~e©eZ©x A_©eQ‡ii Zzjbvq
sector than the previous FY on the base value of FY 2005-06.
Among other sectors of broad service industry, the growth 2014-15 A_©eQ‡i e„w× ‡c‡q‡Q| mvwe©K †mev Lv‡Zi AšÍf©z³ Ab¨vb¨
rate of financial and organizational service sectors has been Lv‡Zi g‡a¨ 2014-15 A_©eQ‡i Avw_©K I cÖvwZôvwbK †mev Lv‡Zi
increased to 8.83 percent which was 7.27 percent in the FY
2013-14.
cÖe„w× n‡q‡Q 8.83 kZvsk hv 2013-14 A_©eQ‡i wQj 7.27 kZvsk|

Poverty Alleviation `vwi`ª we‡gvPb


The depth and severity of the poverty of Bangladesh have `vwi`ª Rb‡Mvôxi RxebhvÎvi gvb Dbœq‡b miKv‡ii wbijm cÖ‡Póvi
been reduced at a mentionable rate as a result of continuous d‡j evsjv‡`‡ki `vwi‡`ªi MfxiZv I ZxeªZv DfqB D‡jøL‡hvM¨ nv‡i
efforts from the government to develop the life standard of
the Poor of the country. Both income-poverty and human- n«vm †c‡q‡Q| G hver ev¯ÍevwqZ Dbœqb Kvh©µ‡gi d‡j evsjv‡`‡ki
poverty has reduced as the development programmes are Avq-`vwi`ª I gvbe-`vwi`ª n«vm †c‡q‡Q| 2005 mv‡j evsjv‡`‡ki
implemented till date. People living in acute poverty in 2005 Pig `vwi‡`ªi nvi wQj 40.4 kZvsk hv 2014 Ges 2015-‡Z †b‡g
was 40.4 percent which decreased to 24.47 percent and
`uvwo‡q‡Q h_vµ‡g 24.47 kZvsk Ges 22.73 kZvsk|
22.73 percent in 2014 and 2015 respectively.

Financial Inclusion Avw_©K AšÍfz©w³


Under the financial inclusion programme, the government miKvi Avw_©K AšÍf©yw³ Kg©mywPi gva¨‡g mnR Dcv‡q g~javivi Avw_©K
has been delivering the regulated financial services at cÖwZôvb mg~‡ni gva¨‡g myweav-ewÂZ Rb‡Mvwôi mv‡a¨i g‡a¨ Avw_©K
affordable costs to the sections of underpreviledged
and low income segments of society. In order to develop cY¨ I †mev †cuŠ‡Q w`‡”Q| †`‡ki †UKmB A_©‰bwZK KvVv‡gv M‡o
sustainable economic structure, opportunity has been given †Zvjvi j‡¶¨ Avw_©K †mev ewÂZ Z…bgyj RbmvaviY Z_v kÖwgK, K…
to open a bank account only at Tk 10 and also by offering lK‡`i‡K mn‡R 10 UvKvq e¨vsK wnmve †Lvjv Ges Gi gva¨‡g webv
various services with free of cost who are excluded from the
regulated financial services such as labourers and farmers.
wd‡Z wewfbœ my‡hvM-myweav †`Iqv n‡q‡Q|

Social Safety Net Programme mvgvwRK wbivcËv †eóbx Kg©m~Px


TK.30,751.11 crore has been allocated in the social safety 2014-15 A_©eQ‡i ev‡R‡U mvgvwRK wbivcËv Lv‡Z 30,751.11 †KvwU
net sector in 2014-15 which is 12.28 percent of the total
budget and 2.30 percent of GDP. The activities under UvKv eivÏ cÖ`vb Kiv nq hv †gvU ev‡R‡Ui 12.28 kZvsk Ges wRwWwci
this programme are Old-Age Allowance, Allowance for 2.30 kZvsk| Gi AvIZvq eq¯‹fvZv , weaev, ¯^vgx cwiZ¨³v I `y:¯’
Widowed, Deserted and Destitute Women, Allowance and gwnjv‡`i fvZv, Am”Qj cÖwZeÜx‡`i fvZv I wkÿve„wË, `wi`ª gv Gi
Stipend for the Physically Challenged Insolvent Citizens,
Maternity Allowance for Poor Women, Allowance for Rb¨ gvZ…Z¡Kvjxb fvZv, GwZg wkï‡`i †LvivwK fvZv, wnRov, `wjZ,

138
ANNUAL REPORT 2015

Dr. Zaid Bakht is delivering inaugural speech at the Zonal and Corporate Branch Head Conference of Agrani Bank Limited
where members of the Board of Directors are also seen on the stage.

Orphans, Allowance for Life Improvement of Transgenders, nwiRb I †e‡` Rb‡Mvwôi Rxebgvb Dbœqb fvZv, gyw³‡hv×v m¤§vbx
Downtrodden, Sweepers and Bohemian People, Honorarium
for Freedom Fighters, Kabikha, Kabita, EEP, One House One
fvZv, KvweLv, KvweUv, BBwc, GKwU evwo GKwU Lvgvi I gwnjv‡`i
Farm and Small Loans for the Self-employment of Women AvZ¥Kg©ms¯’v‡bi ÿz`ª FYmn wewfbœ Kvh©µg ev¯ÍevwqZ n‡q‡Q|
etc.

Short and Medium Term Prospects of the Economy A_©bxwZi ¯^í I ga¨‡gqv`x m¤¢vebv
Considering changed global scenario and internal situation, cwiewZ©Z ˆewk¦K I Af¨šÍixY cwiw¯’wZ we‡ePbvq G‡b ga¨‡gqv`x
7.0 percent growth has been projected in FY 2015-16 under mvgwóK A_©‰bwZK KvVv‡gv, 2016-18 Medium Term
Medium Term Macroeconomic Framework (MTMF 2016- Macroeconomic Framework (MTMF) G AvMvgx 2015-16
A_©eQ‡i wRwWwc 7.0 kZvsk Ges µgvš^‡q Zv e„w× †c‡q 2016-17
2018) and will increasingly be 7.2 percent in FY 2016-17 and
A_©eQ‡i 7.2 kZvsk I 2017-18 A_©eQi bvMv` 7.4 kZvs‡k DbœxZ
7.4 percent in FY 2017-18. Investment is projected to reach n‡e g‡g© cÖ‡ÿcb Kiv n‡q‡Q| wewb‡qvM 2014-15 A_©eQ‡i wRwWwc-i
from 29.4% of GDP in FY 2014-15 to 30.1 percent of GDP in FY 29.0 kZvsk n‡Z e„w× †c‡q 2015-16 A_©eQ‡i wRwWwc-i 30.1
2015-16. Considering the continuous flow of the investment, kZvs‡k `uvov‡e| wewb‡qv‡Mi G cÖe„w×i aviv Ae¨vnZ †_‡K 2016-17
it has been targeted to be 31 percent of GDP in FY 2016-17 A_©eQ‡i wRwWwc-i 31.0 kZvsk Ges 2017-18 A_©eQ‡i wRwWwc-i
and 31.8 percent of GDP in the FY 2017-18. 31.8 kZvsk-G DbœxZ nIqvi jÿ¨gvÎv wba©viY Kiv n‡q‡Q|
Achievement of targeted growth of the GDP set in MTMF GgwUGgGd-G wRwWwc cÖe„w×i wba©vwiZ jÿ¨gvÎv AR©b miKv‡ii
depends on the implementation of the development KwZcq Lv‡Zi Dbœqb Kvh©µg ev¯Íevq‡bi Dci wbf©i K‡i|
activities of some sectors. Creating efficient manpower
wkÿv,¯^v¯’¨,Z_¨ I †hvMv‡hvM cÖhyw³ Lv‡Z ¸iæZ¡ cÖ`v‡bi gva¨‡g `ÿ
by giving emphasis to education, health, information and
communication sectors and well-structured development Rbkw³ ˆZwi Ges we`y¨r I †hvMv‡hvMmn Ab¨vb¨ AeKvVv‡gv Lv‡Z
of the infrastructure of electricity, communication and other mymgwš^Z Dbœqb G †ÿ‡Î f~wgKv ivL‡e| GQvovI K…wlLv‡Z fZ©ywK
sectors will play a vital role in this matter. Besides these, cÖ`v‡bi gva¨‡g K…wl Lv‡Zi cÖe„w× mgyš^Z ivLv, †iwgU¨vÝ-Gi cÖevn
upkeeping the growth of agriculture sector by providing Avkvbyiƒc ivLvi j‡ÿ¨ wewfbœ c`‡ÿc MÖnY Ges Af¨šÍixY Pvwn`vi
goal oriented subsidies, various necessary steps for
expected remittance inflow and comprehensive domestic e¨vcKZv I ‡mev Lv‡Zi cÖe„w× Ae¨vnZ ivLv ga¨‡gqvw` jÿ¨gvÎv
demand and keeping continuous growth of the service AR©‡b mnvqK n‡e| AwaKš‘,evwl©K Dbœqb Kg©m~wPi m‡šÍvlRbK
sector will help to achieve medium term goals. Moreover, ev¯Íevqb, Abyrcv`bkxj Lv‡Z FY mieivn wbiærmvwnZ Kiv Ges
satisfactory implementation of the annual development AMÖvwaKvi wfwˇZ F‡Yi †hvMvb wbwðZKi‡Yi wewfbœ c`‡ÿc G mg‡q
programme, discouraging the loan flow into unproductive
wba©vwiZ jÿ¨ AR©‡b Ae`vb ivL‡e| cvkvcvwk cÖe„w× mnvqK ivR¯^
sectors and different steps for the confirmation of priority
based financing will contribute to achieve the targets by the bxwZi cÖfv‡e miKvwi-‡emiKvwi wewb‡qvM Z¡ivwš^Z Kiv, ivR¯^ LvZ
time. Besides, the boost up of government-nongovernment Ges Avw_©K I gy`ªv Lv‡Zi bvbvgywL ms¯‹vi, wewb‡qv‡Mi †ÿ‡Î Av¯’v

139
investment, several reformations of revenue, financial and wdwi‡q Avbv, ga¨‡gqv‡`i jÿ¨gvÎv Abyhvqx cÖe„w× AR©‡b ¸iæZ¡c~Y©
monetary sectors and creating favourable environment f~wgKv ivL‡e g‡g© cÖZ¨vkv Kiv n‡”Q| wePÿY A_©‰bwZK e¨e¯’vcbv ,
for investment will help to achieve the growth according
to the targets of medium term plan. Prudential economic `ÿ I Kvh©Ki gy`ªvbxwZi cÖ‡qvM, myôz e¨q e¨e¯’vcbv Ges B‡Zvg‡a¨
management, skilled and efficient use of monetary policy, M„nxZ wewfbœ ms¯‹vi Kvh©µgmn bZzb Kvh©µg ev¯Íevq‡bi gva¨‡g `„p
proper expenditure management and already taken A_©‰bwZK wfZ M‡o †Zvjv m¤¢e hv‡Z mvgwóK A_©‰bwZK m~PKmg~‡ni
reformation steps will help to build a strong economic
base in which all the indicators of macro economy will be KvswLZ jÿ¨gvÎv AR©b m¤¢e n‡e I A_©‰bwZK w¯’wZkxjZv weivR
achieved and economic stability will prevail. Ki‡e|

Digital Bangladesh wWwRUvj evsjv‡`k


Its true meaning lies in proper application of technology cÖhyw³i mv_©K cÖ‡qv‡Mi gva¨‡g wk¶v, ¯^v¯’¨ I `vwi`ª we‡gvPbmn
to implement all the commitments of the government miKv‡ii mKj cÖwZkÖæwZ c~i‡Yi g‡a¨ Gi A_© I mv_©KZv wbwnZ|
regarding education, health, employment and poverty
wWwRUvj evsjv‡`k-aviYvi Avmj D‡Ïk¨ n‡jv cÖhyw³i mv_©K cÖ‡qvM
alleviation. The main purpose of this idea is to improve the
standards of living of the people by empowering them, K‡i RbM‡Yi ¶gZvq‡bi gva¨‡g Zv‡`i RxebhvÎvi gv‡bvbœqb
ensuring transparency and accountability in all spheres of Kiv, mgv‡Ri mKj †¶‡Î ¯^”QZv I `vqe×Zv wbwðZ Kiv, mykvmb
life, establishing good-governance and above all, bringing cÖwZôv Kiv Ges m‡e©vcwi RbM‡Yi †`vi‡Mvovq mKj †mev †cuŠ‡Q
public services to their doorsteps through the most effective
†`qv| ms‡¶‡c ej‡Z †M‡j, wWwRUvj evsjv‡`k n‡jv myLx-mg„× I
use of technology. In short, Digital Bangladesh is – a happy
prosperous and enlightened Bangladesh, which is free from Av‡jvwKZ evsjv‡`k, †h †`k n‡e mKj gvby‡li Z‡i, †hLv‡b ¶zav,
hunger, poverty, inequality and corruption and belongs `vwi`ª, AmgZv I `ybx©wZ _vK‡e bv Ges †h †`k wWwRUvj cÖhyw³
completely to its people and is driven forward by digital cÖ‡qv‡Mi gva¨‡g mvg‡bi w`‡K GwM‡q hv‡e|
technology.

Perspective Plan 2010-2021 †cÖw¶Z cwiKíbv 2010-2021


The Government keeping in view the Golden Jubilee of ¯^vaxbZvi myeY© RqšÍx‡K mvg‡b †i‡L miKvi Ôevsjv‡`k †cÖw¶Z
Independence has formulated “Bangladesh Perspective cwiKíbv 2010-2021Õ kxl©K cwiKíbv `wjj cÖYqb K‡i‡Q|
Planning 2010-2021”, in the light of Vision-2021 to attain a
evsjv‡`‡ki A_©‡bwZK I mvgvwRK Dbœq‡bi mywbw`©ó j¶¨ AR©‡bi
definite set of objectives that relate to economic and social
development of Bangladesh. The plan reflects the hopes and R‡b¨B iƒcKí-2021| G cwiKíbvq †`‡ki KvswLZ Dbœq‡bi
aspirations of common people which has been given the †KŠkjMZ j¶¨gvÎv mg~n D‡jøL K‡i Avcvgi Rbmvavi‡Yi Avkv-
top priority and incorporates the development philosophy AvKvsLv‡K m‡e©v”P AMÖvwaKvi w`‡q RvwZi `xN©‡gqv`x Dbœqb `k©b I
of the government, its longterm vision and strategic goals
¯^‡cœi cÖwZdjb Kiv n‡q‡Q| G `xN©‡gqv`x iƒcK‡íi †gŠwjK D‡Ïk¨
of desired development. The fundamental objective of this
long term plan is to alleviate poverty by achieving higher n‡”Q D”PZi cÖe„w× AR©‡bi gva¨‡g `vwi`ª we‡gvPb Ges 2021 mv‡ji
growth and to turn Bangladesh into a middle income g‡a¨ evsjv‡`k‡K GKwU ga¨g Av‡qi †`‡k cwiYZ Kiv †hLv‡b `vwi`ª
country where poverty will be brought to the minimum and me©wb¤œ chv©‡q Ae¯’vb Ki‡e Ges A_©‰bwZK Dbœq‡b AvÂwjK ˆelg¨
regional disparity in the sphere of economic development
K‡g hv‡e|
will be reduced significantly.

The plan contains necessary strategies to overcome the ga¨ Av‡qi †`‡k iƒcvšÍ‡ii P¨v‡jÄ †gvKv‡ejv I Gi R‡b¨ cÖ‡qvRbxq
challenges in terms of turning the country into a medium †KŠkjmg~n i‡q‡Q G cwiKíbvq| Gi cÖavb jÿ¨¸‡jv n‡”Q: 2021
income economy. The major goals of this vision are: to
accelerate the growth upto 10 percent by 2021, to raise mvj bvMv` cÖe„w× 10 kZvs‡k DbœxZ Kiv, gv_vwcQz Avq 2,000 gvwK©b
per capita income upto $ 2000, to reduce the number of Wjv‡i DbœxZ Kiv, `vwi`ª¨ mxgvi wb‡P emevmKvix RbM‡Yi msL¨v
population living under poverty line to 13.50 percent, to
reduce unemployment rate into 15 percent, to increase 13.50 kZvs‡k bvwg‡q Avbv, †eKviZ¡ nvi 15 kZvs‡k bvwg‡q Avbv,
annual per head electricity consumption to 600 Kilowatt evwl©K gv_vwcQz we`y¨r e¨envi 600 wK‡jvIqvU N›Uvq DbœxZ Kiv Ges
hour and to strengthen IT sector for building a digital
wWwRUvj evsjv‡`k MV‡bi Rb¨ Z_¨cÖhyw³ e¨e¯’v‡K kw³kvjx Kiv|
Bangladesh.

Shareholders’ Equity †kqvi‡nvìviÕm BKz¨BwU


The shareholders’ equity of the Bank as on 31 December 2015 mv‡ji wW‡m¤^i †k‡l e¨vs‡Ki †gvU †kqvi †nvìvi‡`i BKz¨BwUi
2015 stood at Tk 4,467.59 crore and paid-up capital of the cwigvY wQj 4,467.59 †KvwU UvKv Ges cwi‡kvwaZ g~jab 2,072.29
Bank Tk 2,072.29 crore. †KvwU UvKv|

140
ANNUAL REPORT 2015

Funding Structure Znwej KvVv‡gv


The year-end funding structures of the Bank in 2014 and 2014 Ges 2015 mv‡ji †k‡l e¨vs‡Ki Znwej KvVv‡gv wQj wb¤œiƒct
2015 are given below:

Taka in crore
Sources of Fund 2015 2014
Deposits 43,997.55 38,392.19
Paid-up-Capital 2,072.29 2,072.29
Statutory Reserve 585.94 585.94
Revaluation & Amoritization Reserve in Govt. Securities 555.31 202.63
Assets Revaluation Reserve 1,107.03 1,107.03
General Reserve 53.65 0.50
Retained Surplus from Profit and Loss Acco0unt 93.36 (11.74)
Total 48,465.13 42,348.84

Asset Portfolio
The year-end asset portfolio scenarios of the Bank in 2014 2015 mv‡ji e¨vs‡Ki m¤ú‡`i †cvU©‡dvwjI-Gi wPÎ wb¤œiƒct
and 2015 are appended below:
Taka in crore Asset Portfolio 2015
Crore Taka
Particulars of Assets 2015 2014 Cash in hand and
with other banks & FIs
Loans and Advances 24,480.18 23,508.57 Money at call and 5,466.08 Other Assets
short notice 4,264.97
159.22
Investments 20,569.75 15,227.98
Fixed Assets 1,594.95 1,544.73
Fixed Assets
Money at call and short notice 159.22 503.00 1,594.95

Cash in hand and with other


5,466.08 4,557.20
banks & FIs
Loans and Advances
Other Assets 4,264.97 4,145.60 Investments 24,480.18
20,569.75
Total 56,535.15 49,487.08

Business Performance e¨emvq AMÖMwZ


a) Deposits K) AvgvbZ
At the end of December 2015, the deposit of the Bank was at 2015 mv‡ji wW‡m¤^i †k‡l e¨vs‡Ki Avgvb‡Zi cwigvY wQj
Tk. 43,997.55 crore compared to Tk. 38,392.19 crore at the end
of previous year leading to a year-on-year growth in deposit
43,997.55 †KvwU UvKv hv MZ eQi wQj 38,392.19 †KvwU UvKv|
of 14.60 percent. Given the adverse economic scenario of G‡Z Avgvb‡Zi cÖe„w×i nvi `vuovq 14.60 kZvsk| Av‡jvP¨ eQ‡ii
the country during the year under review, this growth rate g›`v cwiw¯’wZ m‡Ë¡I Avgvb‡Zi cÖe„w×i nvi wQj D‡jøL‡hvM¨| Pjgvb
is a remarkable achievement. In the prevailing situation, Ae¯’vq AvgvbZ msMÖn AZ¨šÍ cÖwZ‡hvwMZvg~jK welq n‡q `uvwo‡q‡Q|
mobiliziation of deposits became highly competitive. To
reduce the cost of fund gradually the Bank, therefore, decided c~e©eZx© eQ‡ii Zzjbvq Znwej e¨q µgvš^‡q n«vm Ki‡Yi j‡ÿ my`wenxb
to mobilize low cost fund. I ¯^ímy`evnx AvgvbZ msMÖ‡ni c`‡¶c †bqv n‡q‡Q|
The deposit mix of the Bank as on 31 December 2015 was as 31 wW‡m¤^i 2015 mv‡j e¨vs‡Ki Avgvb‡Zi wPÎ wb¤œiƒc:
follows:
Taka in crore †KvwU UvKvq
Types of Deposits 2015 2014 Avgvb‡Zi aiY 2015 2014
Current & other Deposits 4,193.36 3,831.44 PjwZ Ges Ab¨vb¨ AvgvbZ 4,193.36 3,831.44
Savings Bank Deposits 11,716.30 10.507.91 mÂqx AvgvbZ 11,716.30 10.507.91
Fixed Deposits 27,603.68 23,547.45 †gqv`x AvgvbZ 27,603.68 23,547.45
Bills Payable 484.21 505.39 cÖ‡`q wej 484.21 505.39
Total 43,997.55 38,392.19 †gvU 43,997.55 38,392.19

141
b) Asset Quality L) m¤ú‡`i gvb
The Bank maintained quality of asset and this is one of the AMÖYx e¨vsK wjwg‡UW m¤ú‡`i ¸YMZ gvb i¶v K‡i P‡j‡Q hv Gi
strong areas of its operation. The Bank did not compromise cwiPvjbv kw³i GKwU w`K| m¤ú‡`i gvb wbwðZ K‡iB e¨vsK †_‡K
with its standard of excellence in terms of maintaining FY †`qv nq| A_©vr e¨vs‡Ki m¤ú‡`i DrKl©Zvi gv‡bi cÖ‡kœ KLbI
asset quality while extending credit facilities. In order to Av‡cvl Kiv nq bv| m¤ú‡`i ¸YMZ gvb e„w×i Rb¨ e¨emv I evwY‡R¨
improve the quality of our assets, the Bank Management has
FY †`qv‡K e¨vsK AMÖvwaKvi w`‡”Q Ges G‡¶‡Î PjwZ g~jab FY
prioritised financing in trade and commerce by providing
cÖ`vb Ki‡Q| bZzb †kªYxweb¨vwmZ F‡Yi cwigvY e„w× †ivaK‡í Ges
working capital. Moreover, some pragmatic steps have been
cyi‡bv †kªYxweb¨vwmZ F‡Yi UvKv Av`vq c~e©K Kwg‡q Avbvi Rb¨ we‡kl
taken to reduce non-performing loans as well as to prevent
new classification thereof. e¨e¯’v †bqv n‡q‡Q|

c) International Trade M) AvšÍR©vwZK evwYR¨


The commendable share of foreign exchange business †`‡ki ˆe‡`wkK evwY‡R¨i GKwU D‡jøL‡hvM¨ Ask G e¨vs‡Ki 40 wU
within the country is made through 40 Authorized Dealer Aby‡gvw`Z wWjvi ev GwW kvLvi gva¨‡g m¤úvw`Z nq| we‡k¦i wewfbœ
branches of ABL. Besides, the Bank plays important role in †`‡ki eo e¨vsK¸‡jvi mv‡_ 39wU b‡÷ªv wnmve AZ¨šÍ `¶Zvi mv‡_
country’s economy by operating 39 Nostro Accounts with cwiPvjbv K‡i G e¨vsK Avg`vwb, ißvwb, †iwgU¨vÝ I †mev Lv‡Zi
prominent foreign banks in other country/countries through gva¨‡g wecyj cwigvY ˆe‡`wkK gy`ªv AvniY I Avq K‡i †`‡ki
which earns valuable foreign currencies. Now this Bank has A_©bxwZ‡Z ¸iæZ¡c~Y© fzwgKv ivL‡Q| Gfv‡e, G e¨vsKwU MÖvnKe„†›`i
become a symbol of confidence of the customers. Apart from Av¯’vi cÖZxK n‡q `vuwo‡q‡Q| G QvovI, AMÖYx e¨vsK wjwg‡UW-Gi
this, the Off-shore Banking Unit (OBU) has been established. Ad‡kvi e¨vswKs BDwbU cÖwZwôZ n‡q‡Q| Ad‡kvi e¨vswKs BDwb‡Ui
The main functions of this Unit are borrowing and lending cÖavb KvR n‡jv ˆe‡`wkK gy`ªvq ¯^í I `xN©†gqv`x FY Av`vb I cÖ`vb
both in short and long term in foreign currency and providing Ges AvšÍR©vwZK e¨vswKs †mev cÖ`vb Kiv| AMÖYx e¨vsK wjwg‡U‡Wi
international banking services. OBU of ABL is located at EPZ Ad‡kvi e¨vswKs BDwbUwU PÆMÖv‡gi Bwc‡RW kvLvq mdjZvi mv‡_
Corporate branch, Chittagong and successfully functioning GKwU c„_K mË¡v wn‡m‡e KvR Ki‡Q| 2015 mv‡j Ad‡kvi e¨vswKs
as a seperate entity. In the year 2015, OBU of ABL financed BDwbU wewfbœ kvLvi UPAS L/C Gi wecix‡Z 0.12 wgwjqb gvwK©b
against UPAS L/C of different branches for USD 0.12 million. Wjvi A_©vqb K‡i‡Q|

d) Import N) Avg`vwb
The foreign exchange market was stable throughout this PjwZ eQi, ˆe‡`wkK gy`ªv evRv‡i w¯’wZkxjZv weivRgvb wQj|
year. Unless the oil market rebounds, there are bound to be we‡k¦ †Z‡ji `vg me©wb¤œ ch©v‡q †cŠuQvi d‡j ‡Zj I †ZjRvZ cY¨
adverse consequences for commodity producing countries. Drcv`bKvix †`‡k ev AvšÍR©vwZK evRv‡i Gi cÖfve c‡o| Giƒc Ae¯’vq
In spite of this situation, the Bank has kept remarkable
contribution to the import business.
G e¨vs†Ki Avg`vbxi †¶‡Î ‡bwZevPK cÖfve c‡o|

Comparative picture on import business for the year 2014 2014 I 2015 mv‡j AMÖYx e¨vsK wjwg‡U‡Wi d‡ib †iwgU¨vÝ Gi
and 2015: Z_¨ wb¤œiƒct

Types of Business Year Taka in Crore e¨emvi aiY Avg`vwb eQi †KvwU UvKvq
Import 2014 15,741.01 Avg`vwb 2014 15,741.01
Import 2015 10,916.51 Avg`vwb 2015 10,916.51

Import IJohJKj
Taka in Crore ßTJKa aJTJ~

15,741.01 15,741.01

10,916.51 10,916.51

2014 2015 2014 2015

142
ANNUAL REPORT 2015

e) Export Business O) ißvwb e¨emv


In Bangladesh, the Readymade Garments is the main evsjv‡`‡ki ißvwb cY¨mg–‡ni g‡a¨ ˆZix †cvkvK Ab¨Zg| we‡`kx
commodity among other commodities for export. The
foreign buyers are reluctant to place order unless compliant †µZvMY Compliance d¨v±ix e¨wZ‡i‡K ißvwb AW©vi bv †`qvq Ges
factories. On the other hand, the price for other commodities Ab¨vb¨ c‡Y¨i †¶‡Î AvšÍR©vwZK evRv‡i ißvwb g~j¨ K‡g hvIqvq
have gradually decreased in the international market and Zzjbvg~jK ißvwb, mvgwMÖKfv‡e Kg n‡q‡Q| Z‡e ißvwb evwY‡R¨ G
consequently the export dropped. But the Banks are well
managed in maintaining the market share. e¨vsK g~j¨evb Ae`vb †i‡L‡Q|

Comparative picture on export business for the year e¨vs‡Ki 2014 Ges 2015 mv‡ji ißvwb e¨emvi Zzjbvg~jK wPÎ wb¤œiƒc:
2014 & 2015 as mentioned below:

Types of Business Year Taka in crore e¨emv‡qi aiY eQi †KvwU UvKvq
Export 2014 8,344.58 ißvwb 2014 8,344.58
Export 2015 7,543.35 ißvwb 2015 7,543.35

Export r¬JKj
Taka in Crore ßTJKa aJTJ~
8,344.58 8,344.58
7,543.35 7,543.35

2014 2015 2014 2015

Ways to overcome the barriers of Import & Export Avg`vwb I ißvwb e¨emvi cÖwZeÜKZvmg~n AMÖYx e¨vsK wjwg‡UW
business by Agrani Bank Limited †hfv‡e AwZµg K‡i‡Q
It is an ongoing process of Agrani Bank Limited to resolve AMÖYx e¨vsK wjwg‡UW we`¨gvb bxwZgvjvi AvIZvq ˆe‡`wkK
problems in export/import within the policy guidelines, evwYR¨ e¨emv cÖmv‡ii j‡¶¨ MÖvnK‡`i mv‡_ gZ wewbg‡qi gva¨‡g
in exchanging views with exporters / importers of bank. cÖwZeÜKZvmg~n `~ixKi‡Y GKwU Pjgvb cÖwµqv Ae¨vnZ i‡q‡Q|
The Bank is monitoring foreign exchange business as per evsjv‡`k e¨vs‡Ki wb‡`©kbvi Av‡jv‡K ˆe‡`wkK evwYR¨ e¨emv
guidelines of Bangladesh Bank. The Bank has been financing
Z`viKx Kiv nq| ˆe‡`wkK evwYR¨ e¨emv cÖmv‡ii j‡¶¨ ißvwbgyLx
export oriented industries in view of increasing export in
times to come. wk‡í A_©vqb Ae¨vnZ i‡q‡Q|

Future plan of the Bank for increasing international trade ‰e‡`wkK evwYR¨ AviI e„w× Kivi j‡¶¨ e¨vs‡Ki fwel¨r cwiKíbv
1) To fulfil the demand of the existing importer and exporter K) we`¨gvb Avg`vwbKviK I ißvwbKviK‡`i e¨emv e„w×i wel‡q
for further increas the import and export business. Pvwn`v Abyhvqx mnvqZv cÖ`vb Kiv |
2) To establish new entrepreneur for export and import
L) bZzb Avg`vwbKviK I ißvwbKviK wn‡m‡e D‡`¨v³v‡`i
business and extending co-operation to them by
financing and professional counselling. meai‡bi mnvqZv cÖ`vb Kiv |
3) To establish RMA with foreign banks as per requirement M) †`‡ki Avg`vwb I ißvwbKviK‡`i Pvwn`v Abyhvqx we‡`kx
of the importers and exporters in our country. e¨vsKmg~‡ni mv‡_ RMA ¯’vcbKiY|
4) Capacity building of officers in foreign exchange field N) ˆe‡`wkK evwYR¨ AviI MwZkxj Kivi j‡¶¨ Af¨šÍixY cÖwk¶‡Yi
through training & workshop to meet the dynamic gva¨‡g `¶ Kg©KZ©vi msL¨v e„w×KiY|
demand of foreign exchange business.
5) Number of authorized dealer branch of the bank to
O) ˆe‡`wkK evwYR¨ e„w× I MwZkxj Kivi wbwg‡Ë Pvwn`v Abyhvqx
be increased further as per demand of the area of the Aby‡gvw`Z wWjvi kvLvi msL¨v ch©vqµ‡g e„w×Ki‡Yi e¨e¯’v
country enabling to support new exporter and importer. †bqv|

143
F) Foreign Remittance Business P) †iwgU¨vÝ e¨emv
Foreign remittance plays a pivotal role in our national ‰e‡`wkK †iwgU¨vÝ Avgv‡`i RvZxq A_©bxwZ‡Z GKwU ¸iæZ¡c~Y© f~wgKv
economy. Agrani Bank Limited is committed to payout the
hard earned money of Bangladeshi expatriates to their kith
cvjb K‡i Avm‡Q| cÖevmx‡`i KóvwR©Z A_© ¯^íZg mg‡q Zv‡`i
and kin in a shortest possible time. Professional service of our cwievi Ges AvcbRb‡`i Kv‡Q ‡cŠ‡Q ‡`evi `vwq‡Z¡ wb‡ew`Z AMÖYx
skilled workforce toward the customers secured our position e¨vsK wjwg‡UW| †PŠKm Kg©x‡`i `ÿ cwiPvjbvq AMÖYx e¨vsK wjwg‡UW
as first among the state owned commercial banks and second ‰e‡`wkK †iwgU¨vÝ evwY‡R¨ avivevwnKfv‡e PZz_© ev‡ii gZ ivóª
among all the banks of Bangladesh for consecutive 4 years. gvwjKvaxb e¨vsKmg~‡ni g‡a¨ cÖ_g ¯’vb Ges mKj e¨vsK Gi g‡a¨
We have been able to achieve the benchmark by applying wØZxq ¯’vb AwaKvi K‡i‡Q| AvaywbK Z_¨cÖhyw³, AbjvBb †iwgU¨vÝ
modern technology, on line remittance management system
and by introducing spot cash remittance payment system at
g¨v‡bR‡g›U wm‡÷g I ¯úUK¨vk †c‡g›U wm‡÷g Avgv‡`i ‰e‡`wkK
any branch of Agrani Bank. †iwgU¨vÝ cÖevn‡K AviI †eMevb K‡i‡Q|
As part of striving for excellence Agrani Bank Limited †iwgU¨vÝ cÖev‡ni AMÖMwZ a‡i ivLvi Rb¨ AMÖYx e¨vsK wjwg‡UW
has introduced in-house developed software Web Based 2015 mv‡j e¨vs‡Ki wbR¯^ Rbej Øviv †W‡fjcK…Z mdUIq¨vi Web
Remittance Management System in 2015 for instant
Based Remittance Management System Gi gva¨‡g kvLv ch©v‡q
distribution of remittance among the branches. Now a days
our beneficiaries do not have to wait for their money at our `ªæZZg mg‡qi g‡a¨ †iwgU¨vÝ †cÖiY ïiæ K‡i‡Q| G‡Z K‡i MÖvnK‡`i
branch. Beside this COC (Cash Over Counter) remittance is †iwgU¨v‡Ýi A_© MÖn‡Yi Rb¨ c~‡e©i b¨vq A‡cÿv Ki‡Z n‡”Q bv|
also channelized using our own software. Advantage of this GQvov G wbR¯^ mdUIq¨v‡ii gva¨‡g COC (Cash Over Counter)
software is that our beneficiary can collect the money from Remittance-Gi A_© m¤§vwbZ MÖvnKMY GKwU wbw`©ó kvLvi cwie‡Z©
any branch of Agrani Bank limited instead of an assigned Zuv‡`i myweavgZ AMÖYx e¨vs‡Ki †h‡Kvb kvLv †_‡K ZvrÿwYKfv‡e
one. Our remittance performances for last several years are
as follow:
MªnY Ki‡Z cv‡i| weMZ K‡qK eQ‡i †iwgU¨vÝ Avni‡Yi wPÎ wb¤œiæc :

Global Remittance from 2010 to 2015 Million USD

Year Global ABL %


2011 12,168.09 1,167.76 9.60
2012 14,176.91 1,427.33 10.07
2013 13,831.65 1,622.58 11.73
2014 14,807.86 1,670.40 11.28
2015 15,316.94 1,699.25 11.09

Comparative Position of Ramittance of ABL in 2014 & 2014 I 2015 mv‡j AMÖYx e¨vsK wjwg‡UWi d‡ib †iwgU¨vÝ Gi Z_¨
2015 are as follows: wb¤œiæc:
Type of Business Year Taka in Crore e¨emv‡qi aiY mvj †KvwU UvKvq
Remittance 2014 12,979.54 ‡iwgU¨vÝ 2014 12,979.54
Remittance 2015 13,203.51 ‡iwgU¨vÝ 2015 13,203.51

Remittance performance 2015 2015 mv‡j ‡iwgU¨vÝ AR©‡b mvdj¨


Agrani Bank Limited has been relentless for collecting AMÖYx e¨vsK wjwg‡UW ‡iwgU¨vÝ AvniY e„w×i j‡ÿ¨ wbijmfv‡e KvR
remittance. In 2015 two new branches of Agrani remittance K‡i hv‡”Q| 2015 mv‡j gvj‡qwkqv‡Z AMÖYx ‡iwgU¨vÝ nvD‡Ri `ywU
House Sdn. Bhd., Malaysia have been come under operation. bZzb kvLv †Lvjv n‡q‡Q| c„w_exi wØZxq e„nËg gvwb UªvÝdvi ‡Kv¤úvwb
Second largest company “RIA” has been tied up with Agrani RIA Gi mv‡_ ‡iwgU¨vÝ Kvh©µg ïiæ n‡q‡Q| GQvov Majan
Bank Limited. Besides, Majan Exchange Oman, Instant Cash Exchange Oman, Instant Cash UAE Ges Prabhu
UAE and Parbhu Money Transfer Sdn. Bhd. Malaysia also Money Transfer Sdn Bhd Malaysia Gi mv‡_ ‡iwgU¨vÝ
enlisted in our remittance portfolio. Agrani Bank Limited Kvh©µg ïiæ n‡q‡Q| ‰ea cš’vq †iwgU¨vÝ †cÖi‡Y DØy×KiY Kvh©µg
with its partners have sponsored motivational program in wnmv‡e †iwgU¨vÝ †cÖiK I †ewbwdwkqvwi‡`i g‡a¨ Drme Ges cve©Y‡K
ahead of festival for the beneficiaries for remitting money mvg‡b †i‡L e¨vsK we‡`kx G·‡PÄ nvDR Gi mv‡_ †hŠ_fv‡e wewfbœ
through banking channel. Mega prize distributed through ‡cÖv‡gvkbvj Kvh©µg cwiPvjbv K‡i _v‡K| †cÖiK I †ewbwdwkqvwi‡`i
draw among the remitters and beneficiaries for sending AMÖYx e¨vs‡Ki gva¨‡g †iwgU¨vÝ †cÖiY Ges MÖn‡Y DØy×Ki‡Yi Rb¨
remittance through Agrani Bank Limited. Remittance officers Dcnvi cÖ`vb Ges jUvixi gva¨‡g K‡qKRb‡K ‡gMv cyi¯‹vi cÖ`v‡bi
at our branch level are also honored for their professional Av‡qvRb Kiv nq| kvLv ch©v‡q Kg©KZ©v‡`i †iwgU¨vÝ m¤úwK©Z Kv‡R
service. DÏxß Ki‡Z Dcnvi cÖ`vb Ges cyi¯‹„Z Kiv nq|

144
ANNUAL REPORT 2015

Bankwise Remittance Statement (2012-2015) million USD


2013
Name of Bank
2012 2013 2014 2015
IBBL 3,913.45 3,576.73 3,809.04 3,883.29
Agrani Bank Limited 1,430.33 1,620.34 1,670.40 1,699.25
Sonali Bank Limited 1,427.04 1,560.85 1,491.77 1,458.46
Janata Bank Limited 1,182.14 1,331.27 1,381.46 1,302.01
Others Bank 6,223.95 5,742.94 6,565.60 6,973.93
Total 14,176.91 13,832.13 14,918.27 15,316.94

Remittance Business plan 2016 ‡iwgU¨vÝ e¨emv cwiKíbv 2016


Agrani Bank Limited plans different activities to boost up 2016 mv‡j †iwgU¨vÝ Kvh©µg AviI †eMevb Kivi j‡ÿ¨ wewfbœ
remittance flow in the year 2016. Plans have taken to arrange Kvh©µg cwiKíbv Kiv n‡q‡Q| mviv‡`‡ki kvLvmg~‡n AviI DbœZZi
workshop for our remittance officers in all circle office for the †mev cÖ`v‡b DØy×Ki‡Yi j‡ÿ¨ mv‡K©jmg~‡n Kg©kvjv Av‡qvR‡bi
improvement of customer service. To search new avenues cwiKíbv MÖnY Kiv n‡q‡Q| cÖwZwU kvLvi ‡iwgU¨vÝ Kg©KZ©v Ges
especially Bangladeshi migrated countries for remittance
e¨e¯’vcKMY w`be¨vcx G Kg©kvjvq AskMÖnY Ki‡e| byZb byZb
e¨vsK Ges G·‡PÄ nvD‡Ri mv‡_ we‡klZ m¤¢vebvgq †`k¸wj‡Z
collection we are in touch with different Banks/ Exchange
(†h †`‡ki G·‡PÄ nvD‡Ri mv‡_ ‡iwgU¨vÝ Wªwqs G¨v‡ićg›U bvB)
Houses. Meanwhile Remittance Drawing Arrangement ‡iwgU¨vÝ Wªwqs G¨v‡ićg›U cÖwZôv Kivi cÖqvm e„w× Kiv n‡q‡Q| G
is in progress with Alwaneh Exchange Co. Jordan and is j‡ÿ¨ B‡Zvg‡a¨ RW©vb Gi GKwU G·‡PÄ nvD‡Ri mv‡_ Pzw³ m¤úv`b
communicating with Banks/Exchanger Houses in South Kvh©µg cÖwµqvaxb i‡q‡Q| GQvov `wÿY †Kvwiqv Ges gwikvm Gi
Korea and Mauritius to keep our footprint over there. wewfbœ e¨vsK/G·‡PÄ nvDR Gi mv‡_ †hvMv‡hvM Ae¨vnZ Av‡Q|
A huge number of Bangladeshi expatriates prefer to send AÎ e¨vs‡Ki 930wU kvLvq AbjvBb †iwgU¨vÝ wWw÷ªweDkb †bUIqvK©
money through ABL for its better exchange rate and also for _vKvq wcb †Kv‡Wi gva¨‡g †iwgU¨v‡Ýi A_© cwi‡kva e¨e¯’v Pvjy
its online remittance distribution connectivity with all of its i‡q‡Q| cÖwZ‡hvwMZvg~jK G·‡PÄ †iU cÖ`v‡bi Kvi‡Y wecyj msL¨K
930 branches having cash payment service over the counter
cÖevmx evsjv‡`kx AMÖYx e¨vs‡Ki gva¨‡g †iwgU¨vÝ †cÖiY Ki‡Q| G
aviv Ae¨vnZ ivLvi j‡¶¨ e¨vs‡Ki †ewbwdwmqvwi/†iwgUvi‡`i Rb¨
by using Pin Code. To keep remittance flow up, ABL sponsors wewfbœ ï‡f”Qv Dcnvi cÖ`v‡bi gva¨‡g DØy×KiY Kg©m~wP cwiPvjbv
different incentive programs for its valuable customers. The Ki‡Q| 2015 mv‡j wewfbœ †`k n‡Z AÎ e¨vs‡Ki cÖvß †iwgU¨v‡Ýi
country wise remittance received by ABL in the year 2015: wPÎ wb¤œiƒc:
Country name BDT Crore Countrywise Remittance in 2015
KSA 2996.22
Malaysia 2429.01 Crore Taka
USA 2135.78 Qatar 44.22
UK 11.89
UAE 1797.17 Australia 62.56
Canada 11.81
Singapore 1158.52 Italy 78.14
Oman 226.30 Greece 1.10
Kuwait 721.49
Bahrain 299.49 Others 1229.81
Bahrain 299.49
Kuwait 721.49 KSA 2996.22
Oman 226.30
Italy 78.14
Australia 62.56
Qatar 44.22
UK 11.89
Canada 11.81 UAE Malaysia
1797.17 2429.01
Greece 1.10 Singapore USA
1158.52 2135.78
Others 1229.81
Total 13,203.51

145
g) Guarantee Business Q) M¨vivw›U e¨emv
In 2015, the Bank issued guarantees worth Tk. 558.75 crore 2015 mv‡j M¨vivw›U e¨emv‡q e¨vsK 558.75 †KvwU UvKvi M¨vivw›U
compared to Tk. 1,055.44 crore in the previous year. The cÖ`vb K‡i, hvi cwigvY 2014 mv‡j wQj 1,055.44 †KvwU UvKv|
guarantees were issued in favour of different government Dchy³ Rvgvb‡Zi wecix‡Z MÖvnK‡`i c‡¶ e¨vsK KZ…©K wewfbœ
authorities, autonomous bodies, corporations, multi- miKvwi, ¯^vqËkvwmZ cÖwZôvb/ms¯’v, eûRvwZK †Kv¤cvwbi AbyK~‡j
national companies etc. against proper securities. M¨vivw›U cÖ`vb Kiv nq|
h) Treasury Operation R) †UªRvwi Acv‡ikb
As per guidelines of Bangladesh Bank and the international ‡K›`ªxq e¨vs‡Ki †Kvi wi¯‹ g¨v‡bR‡g›U MvBW jvBÝ Ges m‡e©v”P
standard best practices for Core Risk Management Policy,
the Bank has restructured its treasury operations into three
AvšÍR©vwZK gv‡bi mv‡_ mvgÄm¨ †i‡L e¨vs‡Ki †UªRvwi Kvh©µg‡K
segments i.e. 1) Money Market, 2) Foreign Exchange (FX) and (1) gvwb gv‡K©U, (2) d‡ib G·‡PÄ I (3) K¨vwcUvj gv‡K©U ev
3) Capital Market or Equity Desk. Money Market desk has BKz¨BwU †W¯‹ -G wZbwU As‡k cybM©Vb Kiv n‡q‡Q| gvwb gv‡K©U CRR
been maintaining CRR & SLR, overnight transactions and
buying & selling of fixed income securities. FX desk involved I SLR msiÿY, Ges wbw`©ó Avq wewkó wmwKDwiwUR µq weµ‡qi mv‡_
with buying & selling of foreign currencies basically for need m¤ú„³| d‡ib G·‡PÄ †W¯‹ we‡klZ Pvwn`v wfwËK ‰e‡`wkK gy`ªv
based dealings and for dealing with exchange houses by
managing FX positions and risk mitigation as well. Equity µq-weµq Ges G·‡PÄ nvDRmg~‡ni mv‡_ Kfvi dvÛ msµvšÍ wWj
desk deals with equity and shares. Overall treasury function K‡i _v‡K| BKy¨BwU †W¯‹ †kqvi I BKz¨BwU‡Z wewb‡qvM K‡i _v‡K|
operates through three separate offices: i) Treasury Front
Office, ii) Treasury Mid Office and iii) Treasury Back Office.
†UªRvwi wWwfk‡bi mvwe©K Kvh©µg i) †UªRvwi d«›U Awdm ii) †UªRvwi wgW
Treasury Front Office deals with operational activities as risk Awdm I iii) †UªRvwi e¨vK Awdm Gi gva¨‡g m¤úvw`Z n‡q _v‡K| d«›U
taking unit, Mid Office for complying regulations, monitoring Awdm Acv‡ikbvj Kvh©µg, wgW Awdm †i¸‡jkb I gwbUwis Ges
and managing risk while Back Office for settlements and
reconciliations. e¨vK Awdm †m‡Uj‡g›U I wiKbwmwj‡qk‡bi KvR K‡i|

Asset Liability Management (ALM) is the most important m¤ú` I `vq e¨e¯’vcbvi gZ me‡P‡q ¸iæZ¡c~Y© KvRwU †UªRvwi wWwfkb
job done by the Treasury. There is a separate ALM desk for KZ…©K m¤úvw`Z nq| ALM msµvšÍ Kvh©vejx m¤úv`‡bi Rb¨ GKwU
performing ALM related activities. The ALM desk arranges a Avjv`v ALM †W¯‹ i‡q‡Q| ALM †W¯‹ cÖwZ gv‡m Kgc‡ÿ GKwU wgwUs
meeting at least once in every month. It works on minimizing
Gi Av‡qvRb K‡i| GB †W¯‹ Basel- III Gi wb‡`©kbv †gvZv‡eK ALM
the ALM risk in line with the requirement of Basel- III and the
asset quality of the Bank. ALM desk presents various analysis
wi¯‹ b~¨bZg ch©v‡q ivLvi wel‡q KvR K‡i _v‡K| ALM †W¯‹ wewfbœ
on present market situation and future projection before Z_¨-Dcv‡Ëi Dc¯’vcb Ges fwel¨‡Z gv‡K©‡Ui MwZ- cÖK…wZ m¤ú‡K©
the management of the Bank which helps them for decision aviYv w`‡q _v‡K hv DaŸ©Zb KZ©„cÿ‡K e¨emvwqK wm×všÍ MÖn‡Y mnvqZv
making both for profit maximizing and reducing the risk. K‡i|

Treasury Division has been playing a very vital role as a main e¨vs‡Ki AMÖMwZ Z_v jvfRbKZvi †ÿ‡Î †UªRvwi wWwfk‡bi ¸iæZ¡
profit centre. Two major statutory requirements, CRR and Acwimxg| cÖavb `ywU mswewae× Rgv CRR I SLR msiÿ‡Yi KvR Ges
SLR are maintained efficiently by this division and also try wewb‡qvM †_‡K m‡e©v”P Avq wbwðZ Kivi gva¨‡g †UªRvwi wWwfkb me©`v
to maximize yield of investment. The treasury of the Bank is
`ÿZvi mv‡_ K‡i _v‡K| e¨vs‡Ki Av‡qi GKwU eo Ask †UªRvwi, gvwb
the major player both in the interbank money market and
foreign exchange market regardless of buyer or seller in the gv‡K©U I d‡ib G·‡PÄ n‡Z AwR©Z nq| †UªRvwi wWwfkb AvšÍt e¨vsK
interbank money market and FX market. gvwb gv‡K©U I d‡ib G·‡PÄ gv‡K©‡Ui Ab¨Zg mwµq m`m¨|

With efficient and prudent management of the Treasury, a GKwU Kvh©Ki m¤ú` I `vq e¨e¯’vcbv KwgwU e¨vs‡Ki ‡gvU Znwe‡ji
functioning and effective Asset Liability Committee regulates
and articulates the Bank’s total risk appetite, exposures,
Pvwn`v, e¨envi, my‡`i nvi wba©viY Ges m¤ú` I `vq e¨e¯’vcbvi
interest rates, transfer pricing and strategy for Asset Liability Kg©‡KŠkj wba©viY K‡i | Z`byhvqx †UªRvwi wWwfkb `ÿZv I wePÿYZvi
Management of the Bank. An effective ALM process has
enabled the Bank to manage and project its flows of asset
mv‡_ m¤ú` I `vq e¨e¯’vcbvi KvRwU K‡i _v‡K| G wWwfkb GKwU
and liability efficiently, ensuring smooth flow of all funding Kvh©Ki m¤ú` I `vq e¨e¯’vcbv c×wZi mvnv‡h¨ m¤ú` I `vq cÖev‡ni
requirement of the Bank managing risks internally and with
counterparts in view of maximizing all profit opportunities.
h_vh_ cwigv‡ci gva¨‡g Znwej cÖevn wbwðZ K‡i m‡e©v”P gybvdv
The Treasury and its supporting offices have kept up their AR©b K‡i _v‡K| †UªRvwi Ges Gi mn‡hvMx Awdmmg~‡ni ‡ckv`vwiZ¡ I
best effort throughout the year and are determined to keep
it up for better management of Bank’s assets and liabilities in
mgwš^Z cÖqv‡mi gva¨‡g e¨vs‡Ki m¤ú` I `vq e¨e¯’vcbv `ÿZvi mv‡_
the days to come with efficiency. wbiwew”Qbœfv‡e m¤úbœ Kiv m¤¢e n‡”Q|

146
ANNUAL REPORT 2015

Item wise income of Treasury in 2014 & 2015 is shown below: wb‡gœ †UªRvwi KZ©„K 2014 I 2015 mv‡ji Avq LvZIqvix cÖ`k©b Kiv nj:
Taka in crore
SL. NO. Items 2015 2014
1 Sale of securities 165.77 11.70
2 Sale of shares - 0.50
3 Interest on debenture 1.79 2.69
4 Discount on Treasury Bills & Bonds 308.32 188.30
a) Discount on Treasury Bills 293.62 188.22
b) Discount on Bangladesh Bank Bills 14.70 0.08
5 Interest on Treasury Bonds 768.83 782.59
a) Interest on 2, 5, 10, 15 & 20 years Treasury Bonds 545.65 545.07
b) Other Govt. Bonds 223.18 237.52
6 Dividend warrant 132.54 252.37
7 Interest on Subordinated Bonds 52.21 32.61
a) Prime Bank Bond 4.06 2.07
b) MTBL Bond 3.38 3.63
c) NBL Bond 1.47 1.84
d) BRAC Bank Bond 10.44 11.65
e) UCBL Bond 4.34 4.16
f ) One Bank Bond 6.00 6.88
g) AB Bank Bond 7.67 1.90
h) Southeast bank Bond 5.36 0.48
i) EBL Bond 1.98 -
j) Bank Asia Bond 1.98 -
k) EXIM Bank Bond 4.36 -
l) Al-Arafah Islami Bank Bond 0.88 -
m) Standard Bank Bond 0.29 -
8 Interest on other Bonds - 2.13
a) Orascom Telecom Bonds - 1.25
b) Northern Power Bonds - 0.88
9 Interest on Reverse Repo 65.78 28.22
Total 1,495.24 1,301.11

Primary Dealership cÖvBgvix wWjviwkc


Agrani Bank Limited is a founder member of Primary Dealers AMÖYx e¨vsK wjwg‡UW cÖvBgvix wWjvim evsjv‡`k wjwg‡UW
Bangladesh Limited (PDBL) which started its journey with 12 (wcwWweGj) Gi cÖwZôvKvjxb m`m¨| 9 wU e¨vsK I 3 wU Avw_©K
members including 9 banks and 3 FIs in the year 2007. From
cÖwZôvb wb‡q wcwWweGj 2007 mv‡j hvÎv ïiæ K‡i| wcwWweGj
the very first day, as a member of PDBL the Bank has been
playing an important role by participating in the primary Gi m`m¨ wn‡m‡e cÖ_g †_‡KB AMÖYx e¨vsK wjwg‡UW cÖvBgvwi AKkb
auction of Government Treasury Bills & Treasury Bonds for n‡Z miKvwi †UªRvwi wej I eÛ µ‡qi gva¨‡g miKv‡ii NvUwZ ev‡RU
supporting budgetary deficit financing of the government. A_©vq‡b ¸iæZ¡c~Y© f‚wgKv cvj‡bi cvkvcvwk †m‡KÛvwi gv‡K©‡U miKvwi
The Bank is also trying to develop a vibrant secondary market wmwKDwiwUR µq-weµ‡qi gva¨‡g GKwU MwZkxj †m‡KÛvwi gv‡K©U
for government securities by trading the securities in the
m„wó‡Z m‡Pó i‡q‡Q| wb‡¤œ cÖvBgvwi AKkb n‡Z miKvwi wmwKDwiwUR
secondary market. The data of purchasing of government
securities from primary auction and trading of securities in µq Ges ‡m‡KÛvix gv‡K©‡U miKvwi wmwKDwiwUR µq-weµq msµvšÍ
the secondary market is shown below: Z_¨ Dc¯’vcb Kiv n‡jv:

147
Type of Trading Type of Securities 2015 2014
Purchase from Primary Auction Treasury Bills 11,696.72 7,531.08
Treasury Bonds 61.59 349.04
Total 11,758.31 7,880.12
Trading in Secondary Market Treasury Bills - -
Treasury Bonds - 433.86
Total - 433.86

i) Investment S) wewb‡qvM
The investment portfolio of the Bank at the end of the year 2015 mv‡j e¨vs‡Ki †gvU wewb‡qv‡Mi cwigvY wQj 20569.75 †KvwU
2015 stood at Tk 20569.75 crore as against Tk. 15,227.98 crore UvKv| c~e©eZ©x eQ‡i Gi cwigvY wQj 15,227.98 †KvwU UvKv| G
in the previous year, registering a growth of 35.08 percent. †¶‡Î cÖe„w×i nvi 35.08 kZvsk| D”P my` cÖ`vbKvix wewb‡qv‡Mi cÖwZ
The Bank has always given emphasis on high yielding
eiveiB e¨vsK bRi w`‡q‡Q| evsjv‡`k e¨vs‡Ki weAviwcwW mvKz©jvi
investments and maintains Statutory Liquidity Requirement
bs 11, ZvwiL 25 AvMó 2005 I bs 12, ZvwiL 25 AvMó 2005
(SLR) as fixed by Bangladesh Bank vide BRPD circular no. 11
dated 25 August 2005 and circular no. 12 dated 25 August Abyhvqx e¨vsK wewae× Zvij¨ (†÷UzUwi wjKzBwWwU wi‡Kvqvi‡g›U)
2005. The portfolio of investment of the Bank as on 31 i¶v K‡i hv‡”Q| 2015 mv‡ji 31 wW‡m¤^i e¨vs‡Ki wewb‡qvM cwiw¯’wZ
December 2015 is shown below: wQj wb¤œiƒc:

Taka in crore †KvwU UvKvq


Year eQi
Types of Securities wmwKDwiwUi aiY
2015 2014 2015 2014
Treasury Bills 8,408.79 3,658.13 †UªRvwi wej 8,408.79 3,658.13
Treasury Bonds 8,570.48 8,892.72 †UªRvwi eÛ 8,570.48 8,892.72
Government
Reverse REPO 1,118.53 406.13 miKvwi wifvm© wi‡cv 1,118.53 406.13
Securities
Prize Bonds 1.60 1.41 cÖvBR eÛ 1.60 1.41
Sub-Total (A) 18,099.40 12,958.39 Dc-†gvU (K) 18,099.40 12,958.39
Other Bonds 470.73 240.80 Ab¨vb¨ eÛ 470.73 240.80
Non- Debentures - 9.00 wW‡eÂvi - 9.00
Government †emiKvwi
Securities Shares 1,999.62 2,019.79 †kqvi 1,999.62 2,019.79
Sub-Total (B) 2,470.35 2,269.59 Dc-†gvU (L) 2,470.35 2,269.59
Total (A+B) 20,569.75 15,227.98 †gvU (K+L) 20,569.75 15,227.98

Investment 2015
Crore Taka

Other Bonds 470.73


Prize Bonds 1.60

Shares 1,999.62

Reverse REPO 1,118.53

Treasury Bonds 8,570.48 Treasury Bills 8,408.79

148
ANNUAL REPORT 2015

j) Loans and Advances T) FY I AwMÖg


The total loans and advances as on 31 December 2015 was Av‡jvP¨ mv‡ji †k‡l FY I AwMÖ‡gi ‡gvU cwigvY wQj 24,480.18
Tk. 24,480.18 crore as against Tk. 23,508.57 crore at the †KvwU UvKv| c~e©eZx© eQ‡i Gi cwigvY wQj 23,508.57 †KvwU UvKv|G
end of previous year. The advance portfolio of the Bank is †ÿ‡Î cÖe„w×i nvi 4.13 kZvsk| e¨vs‡Ki F‡Yi AvIZvq i‡q‡Q wewfbœ
well diversified and covers funding to a wide spectrum of
†kªYxi FY Ges Zv wewfbœ Lv‡Z mÂvwjZ| e¨emv I wk‡íi †h me Dc-
business and industries including agro-based and agro-
Lv‡Z Zv mÂvwjZ n‡q‡Q †m¸‡jv n‡”Q t G¨v‡MÖv †eBRW Ges G¨v‡MÖv
processing, ship building, ship breaking, steel & engineering,
paper & paper products, chemicals, construction, real estate
cÖ‡mwms wkí, RvnvR ‰Zix, kxc †eªwKs, w÷j Ges BwÄwbqvwis, †ccvi
and loans under consumers’ credit schemes, various trading I †ccvi †cÖvWv±m, †KwgK¨vjm, wbg©vY, Avevmb, KbwRDgvi †µwWU
businesses, women entrepreneurs loan, consumer credit ¯‹xg, wewfbœ e¨emvwqK Kvh©µg, bvix D‡`¨v³v, KbRygvi †µwWU Ges
and Agrani Bidesh gaoar Loan. we‡`k hvIqvi †jvb|

Taka in crore †KvwU UvKvq

Sector-wise Loans 2015 2014 F‡Yi aiY 2015 2014


Agriculture and Fishery 1,187.47 1,063.21 K…wl I grm¨ 1,187.46 1,063.21
Jute and Jute goods 980.00 854.75 cvU I cvURvZ `ªe¨ 980 854.75
Transport, Storage & Communication 345.66 95.66 cwienY, gRy` I †hvMv‡hvM 345.66 95.66
Ship Breaking 119.35 95.77 wkc †eªwKs 119.35 95.77
Textile & Readymade Garments 2,035.92 1,573.13 e¯¿ I ˆZix †cvkvK 2,035.92 1,573.13
Food and Allied Industry 280.00 618.00 Lv`¨ Ges mswkøó wkí 280.00 618.00
Construction & Engineering 106.91 236.68 wbg©vY Ges cÖ‡KŠkj 106.91 236.68
Pharmaceuticals & Chemicals 151.79 176.50 Jla I imvqb 151.79 176.50
Leather 383.87 386.71 Pvgov LvZ 383.87 386.71
Power & Energy 904.68 931.40 we`y¨r LvZ 904.68 931.40
Professional and Services 160.51 284.34 †ckv I †mev LvZ 160.51 284.34
Housing 335.82 527.02 Avevmb 335.82 527.02
Wholesale/ Retail Trading 2,730.01 3,736.00 cvBKvwi I LyPiv e¨emv 2,730.01 3,736.00
Staff Loan 2,908.47 2,598.60 ÷vd †jvb 2,908.47 2,598.60
Others 11,849.72 10,330.80 Ab¨vb¨ 11,849.72 10,330.80
Total 24,480.18 23,508.57 †gvU 24480.18 23,508.57

Farmers fattening cow and cultivating fish financed by Agrani Bank Limited.

149
Sector-wise Loans & Advances on 31-12-2015 is below: 31 wW‡m¤^i 2015 Zvwi‡L LvZ wfwËK FY I AwMÖ‡gi Ae¯’vb wb¤œiƒc:
The Bank gives highest importance to quality assets and F‡Yi ¸YMZ gvb i¶vq e¨vsK m‡e©v”P ¸iæZ¡ w`‡q _v‡K| evwYwR¨K I
carries out appropriate lending risk analysis in approving e¨emvwqK FY †`qvi mgq h_vh_fv‡e FY SzuwK we‡kølY Kiv nq| 2015
commercial and trade loans. The matrix of advances as on mv‡ji 31 wW‡m¤^i Zvwi‡L F‡Yi wPÎ wb¤œiƒc wQj:
31 December 2015 was as follows:

Agriculture and Fishery

s
ood
te g
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&
1,187.47

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at ra
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66

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aki
Bre
34

ip
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19
rs
he

1
Ot
2
49.7
11,8
e
Textile & Readymad
2,035.92
2,908.47 Staff Loan Garments

2,730.
01 RTrading 280
etail
Wholes .00 Foo
Indud and A
33 ale/
5.8 10 stry llied
2 6.9
1
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usi
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04.68
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.79

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150
ANNUAL REPORT 2015

k) Industrial Credit U) wkí FY


Agrani Bank Limited as one of the state-owned commercial ivóª gvwjKvbvaxb Ab¨Zg evwYwR¨K e¨vsK wn‡m‡e AMÖYx e¨vsK wjwg‡UW
banks, plays important role in implementing Govt’s rapid
†`‡ki Dbœq‡bi Rb¨ miKv‡ii `ªæZ wkívqb bxwZ ev¯Íevq‡b ¸iæZ¡c~Y©
industrial policy for overall development of the country. It
extends term loan as well as working capital loan facilities f‚wgKv cvjb Ki‡Q| wkívq‡bi cÖvq mKj †¶‡Î G e¨vsK n‡Z ¯^Zš¿fv‡e
almost in all sectors of industrialization both individually I Kb‡mvwU©qvg/wmwÛ‡Kkb e¨e¯’vq wewfbœ miKvwi I †emiKvwi e¨vsK
and jointly with other government and private banks Ges Avw_©K cÖwZôv‡bi mv‡_ †hŠ_fv‡e ga¨g I `xN©‡gqv`x cÖK‡í
and financial institutions under consortium/ syndication
†gqv`x I PjwZ g~jab FY cÖ`vb K‡i _v‡K| G‡¶‡Î bZzb cÖKí ¯’vc‡b
arrangement. Credit facilities are made available not only
in establishing new projects but also in BMRE of existing FY cÖ`v‡bi cvkvcvwk we`¨gvb cÖK‡íi weGgAviB Ki‡YI FY cÖ`vb
projects.In the industrial sector Bank has sanctioned Kiv nq| wkí FY Lv‡Z 01.01.2015 n‡Z 31.12.2015 ZvwiL ch©šÍ
Tk.1684.25 crore in 76 projects and disbursed Tk.1242.20 76wU cÖK‡íi gÄywiK…Z FY †gvU 1,684.25 †KvwU UvKvi wecix‡Z
crore against the said sanctioned amount during the year weZiY Kiv n‡q‡Q 1,242.20 †KvwU UvKv| G e¨vsK n‡Z wkí Lv‡Z
2015.Total cumulative sum of Tk.6780.41 crore has been
disbursed against a sanctioned amount of Tk.7821.78 crore
31-12-2015 ch©b †gvU 1,157 wU cÖK‡í gÄywiK…Z FY 7,821.78
in 1157 projects up to December 2015, the outstanding of †KvwU UvKvi wecix‡Z 6,780.41 †KvwU UvKv weZiY Kiv n‡q‡Q, hvi
which stands at 7106.96 crore . cywÄf‚Z `vqw¯’wZ 7,106.96 †KvwU UvKv |

Comparison of project loans between 2014 and 2015: 2014 I 2015 mv‡ji †k‡l cÖKí F‡Yi Zzjbvg~jK wPÎ wb¤œiƒc:

Taka in crore
Loan Sanctioned Loan Disbursed
Year Outstanding
Number Amount Number Amount
2015 1157 7821.78 1151 6780.41 7106.96
2014 1081 11798.46 1081 7166.64 6545.47

Picture of a paper mill financed by Agrani Bank Limited.

151
Brief description of industrial loan sectors of ABL in 2015 2015 mv‡ji e¨vs‡Ki wkí F‡Yi LvZmg~‡ni msw¶ß weeiY
Agrani Bank Limited sanctioned loans in different sectors the AMÖYx e¨vsK wjwg‡UW n‡Z wewfbœ Lv‡Z wkí FY cÖ`vb Kiv nq| Gi
importants are as follows:
g‡a¨ D‡j¬L‡hvM¨ LvZmg~n wb¤œiƒc:
• Textiles (Spinning, Weaving, Dyeing, Knitting,
• †U·UvBj (w¯úwbs, DBwfs, Wvwqs, wbwUs, wdwbwks)
Finishing)
• ißvwbgyLx †cvlvK wkí
• Export-Oriented Garments Industry
• †WBwi I †cvjwUª
• Dairy and Poultry
• j¨vÛ †W‡fjcvi
• Land Developer
• wdkvwiR
• Fisheries
• †eªW GÛ we¯‹zU
• Bread and Biscuit
• ivBm GÛ d¬vIqvi wgjm
• Rice and Flour Mills
• eid Kj
• Ice Mills
• d‡i÷ GÛ GjvBW
• Forest and Allied
• dvg©vwmDwUK¨vjm
• Pharmaceuticals
• Transportation
• cwienY
• Auto Bricks/Environtment friendly Bricks
• A‡Uv/cwi‡ekevÜe BU fvUv
• Hotel
• †nv‡Uj
• Education and Poverty Alleviation
• wk¶v I `vwi`ª we‡gvPb
• Small and Cottage Industries • ¶z`ª I KzwUi wkí
• Power Plant • we`y¨r Drcv`b †K›`ª
• Plastic and Rubber • cø¬vw÷K GÛ ivevi
• Cement • wm‡g›U
• Ceramic • wmivwgK
• Paper and Board Mills • †ccvi GÛ †evW© wgjm
• Tanneries • U¨vbvwiR
• Printing and Packaging • wcÖw›Us GÛ c¨v‡KwRs
• Engineering • BwÄwbqvwis
• Electrical and Electronics • B‡jKwUªK¨vj GÛ B‡jKUªwbKm
• Computer • Kw¤úDUvi
• Food and Allied • dzW GÛ GjvBW
• Chemicals • †KwgK¨vjm
• Hospitals and Clinics • nvmcvZvj I wK¬wbK
• Salt • jeY
• Telecommunication • †UwjKwgDwb‡Kkb
• Filling Station • wdwjs †÷kb
• Glass and Glassware • Møvm GÛ MøvmIq¨vi
• Commercial Building and Shopping Mall • evwYwR¨K feb I kwcs gj
Credit Lines †µwWU jvBbm
Apart from own source, ABL utilizes fund received from the AMÖYx e¨vs‡Ki wbR¯^ Drm QvovI wb‡æv³ †µwWU jvBbmg~n †_‡K
following credit lines:
Znwej MÖnY K‡i FY weZiY K‡i‡Q :
• IDA Credit
• AvBwWG †µwWU
• Exim Bank Credit
• Gw·g e¨vsK †µwWU
• ADB Credit • GwWwe †µwWU
• OPEC Credit • I‡cK †µwWU
• Industrial Development Bond Fund • wkí Dbœqb eÛ Znwej
• BSCIC Consortium • wewmK Kb‡mvwU©qvg
• BSCIC Sub-contracting • wewmK mve-K›UªvKwUs
• BSCIC Special Credit • wewmK we‡kl FY
• Light Engineering Credit (Direct BSCIC) • ¶z`ª cÖ‡KŠkj FY (mivmwi wewmK)
• Credit Guarantee Scheme • †µwWU M¨vivw›U ¯‹xg

152
ANNUAL REPORT 2015

Loan to Power Sector we`y¨r Lv‡Z FY cÖ`vb


In the recent years Power Sector is treated as the priority weMZ K‡qK ermi hveZ we`y¨r LvZ †`‡ki AMÖvwaKvi LvZ wn‡m‡e
sector of the country. ABL has been playing a significant role wPwýZ| e¨vsK G Lv‡Z A_©vq‡b ¸iæZ¡c~Y© f‚wgKv cvjb Ki‡Q| 2015
in financing this sector. Up to December 2015, the bank has mv‡ji wW‡m¤^i ch©šÍ G Lv‡Z 8wU cÖK‡í †gvU 1429.35 †KvwU UvKv
disbursed a total of Tk.1,429.35 crore in 8 projects generating FY weZiY Kiv n‡q‡Q| A_©vqbK…Z 8wU cÖKí n‡Z ˆ`wbK 621
more or less 621 MW electricity per day all of which are duly †gMvIqvU we`y¨r Drcvw`Z n‡”Q Ges Zv RvZxq MÖx‡Wi gva¨‡g †`‡ki
linked with the national grid of the country. wewfbœ A‡j mieivn Kiv n‡”Q|
Loan to Health Sector ¯^v¯’¨ Lv‡Z FY cÖ`vb
To spread the medical services to the doorsteps of mass †`‡ki Avcvgi Rb‡Mvwôi Øvi cÖv‡šÍ ¯^v¯’¨ †mev †cuŠ‡Q †`qvi cÖqv‡m
people of the country, the bank has disbursed a total e¨vsK KZ…©K G hver 24wU nvmcvZvj I wK¬wb‡K †gvU 71.70 †KvwU
of Tk.71.70 crore so far to 24 hospitals and clinics, the UvKv FY weZiY Kiv n‡q‡Q hvi ermiv‡šÍ `vqw¯’wZ 43.74 †KvwU UvKv|
outstanding of which is Tk.43.74 crore at the end of the year.
Syndication Financing wmwÛ‡Kkb FY
ABL has been playing an important role in implementing wmwÛ‡Kkb e¨e¯’vq eo eo cÖKí ev¯Íevq‡b AMÖYx e¨vsK wjwg‡UW
large project under syndication financing. Since 2005 the †`‡k ¸iæZ¡c~Y© f‚wgKv cvjb K‡i Avm‡Q| G‡¶‡Î 2005 mvj †_‡K
Bank has financed Tk. 2,261.03 crore against 80 projects jxW e¨vs‡Ki f‚wgKv cvjbmn wmwÛ‡Kkb/Kb‡mvwU©qv‡g AskMÖnYKvix
up to December 2015 as the member bank as well as lead m`m¨ e¨vsK wn‡m‡e wW‡m¤^i 2015 ch©šÍ 80 wU cÖK‡íi wecix‡Z
arranger of syndication/consortium, the outstanding of 2,261.03 †KvwU UvKv A_©vqb Kiv n‡q‡Q, hvi ermiv‡šÍ `vqw¯’wZ
which is Tk.1,461.96 crore at the end of the year. 1,461.96 †KvwU UvKv|
SME Financing of ABL GmGgB Lv‡Z AMÖYx e¨vsK wjwg‡U‡Wi A_©vqb
SME is a much talked sector in the present developing world. eZ©gvb Dbœqbkxj we‡k¦ GmGgB GKwU eûj Av‡jvwPZ LvZ| GwU
This sector is labor intensive with short gestation period. It kÖgNb Ges Aí mg‡q dj`vqK GKwU LvZ| G LvZwU‡K Avq Drcv`K
is treated as income generating machine and driving force hš¿ Ges wkívq‡bi PvwjKvkw³ wnmv‡e we‡ePbv Kiv nq| Rvcvb, Pxb,
of industrialization. The countries like China, Japan, Malaysia, gvj‡qwkqv, _vBj¨vÛ, B‡›`v‡bwkqv Ges m¤úªwZ fvi‡Zi gZ †`kmg~n
Indonesia, Thailand and India have developed their national GmGgB Lv‡Zi Dbœqb NwU‡q Zv‡`i RvZxq A_©bxwZi e¨vcK Dbœqb
economy through the development of SMEs. So, Bangladesh
mvab K‡i‡Q| ZvB evsjv‡`k miKvi GwU‡K AMÖvwaKvi LvZ we‡ePbv
Government has given more emphasis on SMEs considering
a priority sector for which Bangladesh Bank has also taken
K‡i Gi Dci AwaKZi ¸iyZ¡ w`‡q‡Q Ges evsjv‡`k e¨vsKI AMÖvwaKvi
various priority initiatives. As a development partner, Agrani wfwˇZ wewfbœ ai‡Yi c`‡¶c MÖnY K‡i‡Q| Dbœqb mn‡hvMx wn‡m‡e
Bank Limited has also been operating various loan activities AMÖYx e¨vsK wjwg‡UWI GmGgB Lv‡Zi Dbœq‡b bvbvwea GmGgB FY
for the development of SMEs. Kvh©µg cwiPvjbv Ki‡Q|
Guideline of loan disbursement in SME sector GmGgB Lv‡Z FY weZi‡Yi bxwZgvjv
To comply with Bangladesh Bank’s new instruction, Agrani m¤úªwZ evsjv‡`k e¨vs‡Ki GmGgB GÛ †¯úkvj †cÖvMÖvgm& wefvM
Bank Limited has circulated instructions by modifying KZ…©K KzwUi, gvB‡µv, ÿz`ª I gvSvwi D‡`¨v‡Mi msÁv, GmGgB
definition of Cottage, Micro, Small and Medium Industry/ A_©vqb, bvix D‡`¨vM I wewfbœ cybtA_©vqb msµvšÍ wel‡q BZtc~‡e©
Enterprise, SME financing, Women Enterprise and various RvixK…Z wb‡`©kbvmg~‡ni AwaKZi ms‡kvabc~e©K bZzb wb‡`©kbv Rvix
refinance schemes. To bring in a sustainable condition Kiv n‡q‡Q| mg‡qi cÖ‡qvR‡b †`‡k GmGgB A_©vqb‡K Av‡iv †ewk
making more organized, entrepreneur friendly, modern and
mymsnZ, D‡`¨v³v evÜe, mg‡qvc‡hvMx I mvwe©Kfv‡e AšÍf©~w³g~jK
GKwU ‡UKmB avivq wb‡q Avmvi j‡‡ÿ¨ bZzb bZzb wb‡`©kbv ms‡hvRb
massive participatory SME financing for the situation, the K‡i RyjvB 2015 G e¨vsK KZ©©„K Master Circular on SME
Bank issued Master Circular on SME Financing. Financing Rvix Kiv n‡q‡Q|
Criteria of SME in Agrani Bank Limited are given briefly D³ mvK©yjv‡i ewY©Z wmGgGmGgB Gi µvB‡Uwiqv mswÿßfv‡e QK
below: AvKv‡i Dc¯’vcb Kiv n‡jv :
Industry /Enterprise Sectors Either/or
Replacement cost of fixed asset Employed
excluding land & building Manpower
Service TK 1.00 crore to 15.00 crore 50-100
Medium Business TK 1.00 crore to 15.00 crore 11-50
Industrial TK 10.00 crore to 30.00 crore 100-250
Service TK 5.00 lac to 1.00 crore 10-49
Small Business TK 5.00 lac to 1.00 crore 6-10
Industrial TK 50.00 lac to 10.00 crore 25-99
Service Less than TK 5.00 lac Less than 10
Micro Business Less than TK 5.00 lac 5 or Less than 5
Industrial TK 5.00 to 50.00 lac 10-24 or less
Cottage Industry with the members of family. Less than TK 5.00 lac Not above 10

153
Sectors of SME financing GmGgB Lv‡Z FY cÖ`v‡bi †ÿÎmg~n
Service sectors ‡mev LvZ
Hotel, restaurant, tailoring, laundry, hospital, clinic, †nv‡Uj, †i÷z‡i›U, †UBjvwis, jwÛª, nvmcvZvj, wK¬wbK, wKÛvi
kindergarten, block and printing, tractor, power tiller, Mv‡U©b, eøK GÛ wcÖw›Us, Uªv±i, cvIqvi wUjvi, †mP hš¿ BZ¨vw`|
irrigation equipment etc.

Business sectors: e¨emv LvZ


Grocery shop, cloth shop, medicine shop, plastic and gyw` †`vKvb, Kvc‡oi †`vKvb, Jl‡ai †`vKvb, cøvw÷K I wm‡š’wU‡Ki
synthetic shop, shop of spare parts, rods and cement, †`vKvb, LyPiv hš¿vs‡ki †`vKvb, iW-wm‡g‡›Ui e¨emv, dvwb©Pvi e¨emv,
furniture, agro-business and other income generating and K…wlRvZ cY¨, Ges Ab¨vb¨ Avq Drmvwi I mvgvwRKfv‡e MÖnY†hvM¨
socially acceptable business. e¨emv|
Industry sectors wkí LvZ
Cotton industry, jute industry, garments, rice mill, plastic Kvco wkí, cvU wkí, Mv‡g©›Um, Pvj Kj, cøvw÷K wkí, KivZ Kj,
industry, saw mill, light engineering, agro processing, feed nvjKv cÖ‡KŠkj wkí, K…wl cÖwµqvKiY, wdW wgj, dvwb©Pvi wkí, Ges
mill, furniture industry and other socially acceptable and
eco-friendly business. Ab¨vb¨ cwi‡ek evÜe I mvgvwRKfv‡e MÖnY†hvM¨ e¨emv|

Sector wise disbursement and outstanding SME in 2015: D³ †ÿÎmg~‡n 2015 mv‡j weZiYK…Z FY Ges `vqw¯’wZi cwigvY:

Taka in crore
Sectors of SME financing Disbursement Outstanding
Service sectors 357.00 297.74
Business sectors 1780.63 3043.18
Industrial sectors 53.37 1309.08
Total 2191.00 4650.00

Growth of Agrani Bank Limited in SME sectors in 2015 2014 mv‡ji †P‡q 2015 mv‡j GmGgB Lv‡Z e¨vs‡Ki AMÖMwZi eY©bv
compared to 2014 is given below: (†Uwejmn) wb¤œiæc:

Taka in crore

Year Disbursement Recovery Outstanding


Number Amount Number Amount
2014 19539 1957.00 1520.00 80302 5430.00
2015 19950 2191.00 1650.00 86192 4650.00

Contribution of ABL in Developing of SME GmGgB Gi Dbœq‡b AMÖYx e¨vsK wjwg‡UW Gi Ae`vb
Since the inception of SME financing, Agrani Bank Limited has GmGgB A_©vqb ïiæi ci †_‡KB AMÖYx e¨vsK wjwg‡UW GmGgB Gi
been taking various steps such as establishment of separate Dbœq‡b bvbvwea D‡`¨vM MÖnY K‡i Avm‡Q †hgb-c„_K GmGgB ‡µwWU
SME Credit Division, adopting SME financing activities
wWwfkb cÖwZôv, evsjv‡`k e¨vs‡Ki bxwZgvjvi Av‡jv‡K GmGgB FY
according to Bangladesh Bank’s guidelines, operating SME
financing activities through all branches, allocating sufficient Kvh©µg MÖnY, mKj kvLvi gva¨‡g GmGgB FY Kvh©µg cwiPvjbv,
budget for SME loan disbursement, zone & cluster wise SME GmGgB FY weZi‡Yi Rb¨ ch©vß ev‡RU eivÏ, AÂj I K¬v÷vi
loan disbursement, establishing SME Help Desk & Women wfwËK GmGgB FY weZiY, mKj kvLvq GmGgB †ní †W¯‹ I bvix
Entrepreneur Dedicated Desk in all branches, establishing D‡`¨v³v‡`i Rb¨ wb‡ew`Z Kg©KZ©vi †W¯‹ ¯’vcb, 62wU AvÂwjK
SME Monitoring Cell & Women Entrepreneur Development
Unit in all Zonal Offices & Corporate Branches, setting
Kvh©vjq I 27wU K‡c©v‡iU kvLvq GmGgB gwbUwis †mj I bvix D‡`¨v³v
up focal officer, introducing separate loan activities for Dbœqb BDwbU MVb, ‡dvKvj Kg©KZv© wb‡qvM, bvix D‡`¨v³v‡`i Rb¨
women entrepreneurs, vivid participation in different SME c„_K FY Kg©m‚wP Pvjy,GmGgB FY †gjvq ewY©jfv‡e AskMÖnY I
fairs & other promotional efforts etc. As a result of taking Ab¨vb¨ cÖPvi-cÖPviYvg‚jK Kvh©µg| Gme Kvh©µg MÖn‡Yi d‡j e¨vsKwU
these activities, in the meantime the Bank has achieved
B‡Zvg‡a¨ GmGgB Gi †¶‡Î GKwU DËg Ae¯’v‡b DcbxZ n‡q‡Q|
an advanced position. The financial position of SME loan
activities up to December2015 is given below: wW‡m¤^i 2015Bs wfwËK GmGgB F‡Yi Ae¯’v wb¤œiƒc:

154
ANNUAL REPORT 2015

Disbursement upto Outstanding amount as


Disbursement % of Dis- Classified
Nature of loan Dec. 2015 on Dec. 2014
Target 2015 bursement loans
Number Amount Number Amount
Cottage Enterprises 10.00 26 1.00 10% 0.10 41 2.20
Micro Enterprises 90.00 3818 350.70 390% 28.19 39577 121.12
Small Enterprises 1357.39 15873 1364.80 101% 470.70 46140 2875.50
Medium enterprises 787.61 233 474.50 60% 526.01 434 1651.18
Total 2245.00 19950 2191.00 98% 1025.00 86192 4650.00

SME financing along with national and †`wk I we‡`wk cÖwZôv‡bi mv‡_ †hŠ_fv‡e GmGgB FY
international organisation : cÖ`v‡bi eY©bv:
NGO Linkage program of ABL GbwRI wjs‡KR †cÖvMÖvg
Agrani Bank Limited is a pioneer bank in expanding credit †hvM¨ GbwRI‡`i gva¨‡g FY Kvh©µg m¤úªmvi‡Y AMÖYx e¨vsK wjwg‡UW
activities through the capable NGOs. The Bank has engaged GKwU AMÖMvgx e¨vsK| e¨vsKwU GmGgB FY †mev m¤úªmvi‡Y wewfbœ
different NGOs for expanding the SME credit services. Any GbwRI cÖwZôvb‡K wb‡qvwRZ K‡i‡Q| †h †Kvb †hvM¨ GbwRI cÖwZôvb
potential NGO can avail the credit facilities from this Bank e¨vs‡Ki we`¨gvb wewagvjvi Av‡jv‡K GB FY myweav MÖnY Ki‡Z cv‡i|
complying existing rules and regulations. The Bank has
2015 mv‡j e¨vsKwU GbwRI cÖwZôvb eª¨vK‡K 3120.00 wgwjqb UvKv
already disbursed a total loan of Tk 312.00 crore to the BRAC
in 2015. As a retailer, the NGOs have re-lent the same to the
FY cÖ`vb K‡i‡Q| wi‡UBjvi wn‡m‡e D³ GbwRI cÖwZôvb GmGgB FY
targeted SME people. MÖnxZvi gv‡S G FY cybt weZiY Ki‡Q|

Foreign Aided Credit Programs of ABL ˆe‡`wkK mvnvh¨cyó FY`vb cÖKí


The Agrani Bank Limited has been utilizing its own fund and FY weZiY Kvh©µg cwiPvjbvi Rb¨ AMÖYx e¨vsK wjwg‡UW e¨vs‡Ki
the foreign fund for credit operation. The credit programs wbR¯^ Znwej I ˆe‡`wkK Znwej e¨envi K‡i‡Q| BwRwcAviwc I
namely EGPRP and MSFSCIP (Kurigram) are being successfully GgGmGdGmwmAvBwc (KzwoMÖvg) cÖKí `yÕwU Bdv‡`i Avw_©K mnvqZvq
operated by the Bank under the financial assistance of IFAD. AZ¨šÍ mdjZvi mv‡_ cwiPvwjZ n‡”Q| BwRwcAviwc Gi AvIZvq e¨vsKwU
Under the program EGPRP, the Bank is extending credits to mviv‡`‡k ‡gvU 190wU kvLvi gva¨‡g D‡`¨v³v‡`i gv‡S FY weZiY
the people through its 190 branches. Agrani Bank Limited Ki‡Q| 2015 mv‡j e¨vsKwU BwRwcAviwc I GgGmGdGmwmAvBwc
has disbursed TK 21.31 crore under EGPRP program & TK 0.21 (KzwoMÖvg) cÖKí `yÕwUi AvIZvq h_&µ‡g 213.10 wgwjqb I 2.10
crore under MSFSCIP program in 2015. wgwjqb UvKv FY cÖ`vb K‡i‡Q|
SME vision-2016 GmGgB iƒcKí-2016
The Bangladesh Government has formulated policy strategies evsjv‡`k miKvi, wkíbxwZ 2010 Gi gva¨‡g GmGgB Gi Dbœq‡bi
for developing SME through industrial policy 2010 providing Rb¨ wewfbœ wb‡`©kbv w`‡q Kg©‡KŠkj ˆZwi K‡i‡Q| miKv‡ii Dbœqb
guidelines for SME development. As a development partner mn‡hvMx wn‡m‡e 2016 mv‡j wmGgGmGgB Gi m¤cÖmvi‡Y AMÖYx e¨vsK
of the Government, the Bank has a wide vision for the year wjwg‡UW Gi GKwU we¯Í…Z iƒcKí (wfkb) i‡q‡Q| wmGgGmGgB Lv‡Zi
2016. Under the vision, the SME credit should be extended to e¨vcK cÖmv‡ii D‡Ï‡k¨ GB iƒcK‡íi AvIZvq Dchy³ D‡`¨v³v
close door people. In this purpose TK 2,694.00 (two thousand wbe©vPb K‡i e¨vsK FY RbM‡Yi †`vi-†Mvovq †cuŠ†Q †`qv n‡e| G
six hundred ninety four) crore has been assigned as SME j‡¶¨ 2016 mv‡j wmGgGmGgB FY weZiY jÿ¨gvÎv 2,694.00
loan disbursement target for the year of 2016. An action plan (`yB nvRvi QqkZ PzivbeŸB) †KvwU UvKv wba©viY Kiv n‡q‡Q| DËg
related to train up branch manager & loan officers will be GmGgB FY †mev wbwðZ Kivi Rb¨ cÖwZ eQ‡ii b¨vq kvLv e¨e¯’vcK
taken alike previous years to ensure better SME loan service I FY Kg©KZ©v‡`i cÖwkÿY wel‡q GKwU Kg© cwiKíbv nv‡Z †bIqv
as per instructions of Bangladesh Bank. Various SME products n‡e, evsjv‡`k e¨vs‡Ki wb‡`©kbv ev¯Íevq‡bi wbwg‡Ë wb‡`©k cwicÎ
of ABL will be displayed in various fairs & will be participated Ges c‡Îi gva¨‡g mKj‡K AewnZ Kiv n‡e, AMÖYx e¨vsK wjwg‡UW
in various seminars/conferences. Special attention will Gi GmGgB cY¨ (‡cÖvWv±) wewfbœ †gjvq cÖ`k©b Kiv n‡e Ges wewfbœ
be given to increase financing in environment friendly, ‡mwgbvi/Kbdv‡i‡Ý AskMÖnY Kiv n‡e| cwi‡ek evÜe, K…wlwfwËK
agro based & agro processing industries, labor intensive I K…wlRvZ cY¨ cÖwµqvKiY wkí, kÖgNb I Drcv`bgyLx D‡`¨vM,
& production oriented enterprise, production of import Avg`vwb weKí cY¨ Drcv`b, ißvwbgyLx D‡`¨vM, D™¢vebx bZzb
substitute commodities, export oriented enterprise, creative D‡`¨vM I AvBwU Ges cÖhyw³wbf©i D‡`¨v‡M A_©vqb e„wׇZ we‡kl bRi
new enterprise and IT & technology related enterprises. †`Iqv n‡e| GQvov mvwe©K wmGgGmGgB Kvh©µg AviI MwZkxj Kivi
Beside these, necessary steps will be taken from time to time j‡¶¨ mg‡q mg‡q cÖ‡qvRbxq c`‡¶c MÖnY Kiv n‡e hv‡Z †`‡ki
to gear up overall SME activities so that performance of ABL wmGgGmGgBi Dbœq‡b AMÖYx e¨vsK wjwg‡UW Gi f‚wgKv mK‡ji wbKU
will be pioneering in developing SMEs. AbyKiYxq `„óvšÍ n‡Z cv‡i|

155
Agriculture and Rural Credit K…wl Ges cjøx FY
Agrani Bank Limited has been financing in agri and rural AMÖYx e¨vsK wjwg‡UW K…wl, cïcvjb, grm¨ Pvl Ges wewfbœ cÖKvi
activities since 1977 with broad objective of integrating
rural people with the mainstream development activities Drcv`bgyLx K…wl I cjøx FY Kg©Kv‡Û 1977 mvj n‡Z FY cª`vb K‡i
and tap the unutilised sources in order to boost up growth Avm‡Q| cjøx GjvKvi `wi`ª Rb‡Mvwô‡K wewfbœ cÖKvi Drcv`bgyLx
in agriculture including livestock, fishery and other off farm
activities. Poverty alleviation through income generating I Avq Drmvix Kg©Kv‡Û wb‡qvwRZKi‡Yi gva¨‡g Zv‡`i mvgvwRK I
activities is one of the strategies which the Bank has been A_©‰bwZK Ae¯’vi mvwe©K Dbœq‡b ¸iæZ¡cyY© f‚wgKv cvjb K‡i Avm‡Q|
pursuing to make financial resources available to the rural D‡jøL¨, 2015-16 A_© eQ‡i evsjv‡`k‡K `y‡a ¯^qsm¤ú~Y© Kivi Rb¨
poor to break poverty cycle and stimulated growth. Large
number of targeted programs with loan amount to Taka 5,000- 5% nvi my‡` FY cÖ`v‡bi j‡¶¨ evsjv‡`k e¨vs‡Ki 200 †KvwU UvKvi
2,00,000 and interest rate of 8% have undertaken to reach wifjwfs cybt A_©vqb Kg©m–wPi AvIZvq †`kxRv‡Zi eKbv evQyi µ‡qi
the rural landless, marginal farmers,small enterpreneurs and
distressed women. No collateral security is required for loan wecix‡Z FY cÖ`v‡bi bxwZgvjv MÖnY Kiv n†q‡Q| 8% my‡` cjøxi
upto Taka 2,00,000 on certain agriculture/rural credit sector. f‚wgnxb, cÖvwšÍK Pvlx, ¶z`ª D‡`¨v³v Ges Amnvq gwnjv‡`i 5000
It should be mentioned here that in the financial year 2015- UvKv n‡Z 2,00,000 UvKv ch©šÍ FY weZi‡Yi j¶¨ avh© Kiv n‡q‡Q|
2016 Bangladesh Bank has circulated the policy/guidelines
of Heifer purchase loan through artificial insemenation by mnvqK RvgvbZ QvovB 2,00,000 UvKv ch©šÍ KwZcq K…wl/cjøx FY
producing high yielding variety milching cow. In the Financial Lv‡Z FY weZiY Kiv n‡”Q| 2015 -16 A_© eQ‡i K…wl I cjøx FY
Year 2015-2016, disbursement target of Agriculture and Rural
Credit is Taka 660.00 crore. Upto December 2015 Tk. 317.99
weZiY j¶¨gvÎv 660.00 †KvwU UvKv| wW‡m¤^i/15 ch©šÍ 317.99
Crore was disbursed and 1377.82 crore is outstanding as on †KvwU UvKv FY weZiY Kiv n‡q‡Q Ges 31/12/2015 Zvwi‡L
December 2015. From 1977 to till date the beneficiaries under e‡Kqv w¯’wZ 1,377.82 †KvwU UvKv| 1977 †_‡K wW‡m¤^i 2015 ch©šÍ
the 54 programs implemented by the Rural Credit Division
includes 40,86,465 persons of different sectors and the wewfbœ Kg©m~wPi Aaxb wewfbœ Lv‡Z 40,86,465 Rb FY MÖnxZvi
amount involved is Tk.5361.19 Crore upto December 2015. gv‡S 5,361.19 †KvwU UvKv FY weZiY Kiv n‡q‡Q| AMÖYx e¨vsK
The major credit projects/programes of ABL are mentioned
below:
wjwg‡U‡Wi cÖavb cÖavb FY cÖKí/Kg©m‚wP ¸‡jv:

Comparative figure of Agriculture/Rural Credit of 2014 and 2015 Taka in crore

Sl. 2014 2015


Sector
No Target Disbursement Target Disbursement
1 Crops 368.00 358.87 430.00 428.80
2 Fisheries 40.00 12.19 43.00 42.44
3 Livestock 30.00 22.16 44.00 41.55
4 Poverty Alleviation 130.00 129.13 103.00 102.40
5 Others 92.00 87.71 40.00 39.62
Total 660.00 610.06 660.00 654.81

Crop Loan Programe, Crop Diversification Project, Swanirvar km¨ FY, km¨ eûgyLxKiY FY, ¯^wbf©i FY, cjøx FY cÖKí(AviGdwc),
Credit Programe, Rural Finance Project (RFP). Shashya Gudam
Reen Prokalpa, Shrimp Culture Programe (General), Credit km¨ ¸`vg FY cÖKí, wPswo Pvl FY(mvaviY), Kjv Pvl FY, jeY
Scheme for Banana Cultivation, Credit to Salt Growers, Drcv`b FY, ¶z`ª D‡`¨vM FY cÖKí, grm¨ Pvl FY(cyKz‡i grm¨ Pvl),
Khudra Uddyog Credit Programe, Fisheries Financing
Avav-wbweo wPswo Pvl FY, †mP hš¿ FY, AvZœ-Kg©ms¯’vbg‚jK FY`vb,
Programe (Pond). Semi-intensive Shrimp Culture Programe,
Credit Programe for Irrigation Equipment, Self Employment cjøx M„n wbg©vY FY, eKbv evQyi ( widvBb¨vÝ) µq FY , cjøx cwienY
Programe for the Unemployed Youth, Credit for Rural House FY, ¶z`ªKvq nuvm gyiMxi Lvgv‡ii Rb¨ FY`vb, mvaviY cjøx FY, `vwi`ª
Building, Bokna basur (Heifer) Purchase Loan Programe, Credit
for Rural Transport, Bank Loan Programe in small scale poultry we‡gvP‡b D`¨vb wfwËK dmj Drcv`‡b FY, K…wl hš¿cvwZ FY, cvb
farms, General Rural Credit Programe, Horticulture Programe Pvl FY, Mvfx cvjb, nv‡ji ej`/gwnl µq, Miæ †gvUvZvRvKiY FY,
for Poverty Alleviation, Agricultural Equipment Programe,
`vwi`ª we‡gvP‡b QvMj cvjb FY, `vwi`ª we‡gvP‡b †fov cvjb FY,
Beef Fattening Credit Crograme, Goat Rearing Programe
for Poverty Alleviation, Ram Rearing Programe for Poverty †Ku‡Pv K‡¤úvó mvi Drcv`b FY, K…wl wfwËK cÖKí F‡Yi AvIZvq
Alleviation, Vermicompost Organic Fertilizer Credit Programe grm¨ Pvl cÖK‡í FY, grm¨ Pvl n¨vPvix/bvm©vix cÖK‡í FY †WBix wk‡í
and agro-based project loan which includes-Fish Cultivation
Project, Poultry Hatchery and Rearing Project, Integrated FY, †cvwëª, n¨vPvix/bvm©vix wk‡í FY, mgwš^Z cÖKí FY, wdW wgj wkí
Farms, Feed Meals etc. FY BZ¨vw`|

156
ANNUAL REPORT 2015

Loan Classification FY †kªYxweb¨vmKiY


In 2015, total loan classification increased to Tk. 4,640.41 †kªYxweb¨vwmZ F‡Yi cwigvY 2014 m‡bi 3,965.95 †KvwU
crore as against Tk. 3,965.95 crore in 2014 and the percentage UvKvi wecix‡Z 2015 m‡b `uvwo‡q‡Q 4,640.41 †KvwU UvKv Ges
of loan classification increased to 18.96 percent in 2015 as †kªYxweb¨vwmZ F‡Yi nvi 2014 m‡bi 18.96 kZvsk n‡Z e„w× †c‡q
against 16.96 percent of 2014.
2015 m‡b `uvwo‡q‡Q 16.96 kZvsk|

Loan Recovery Activities 2015 FY Av`vq Kvh©µg 2015


From the very beginning of the year 2015 Plans have been †kÖYxweb¨vwmZ F‡Yi cwigvY n«vmKi‡Yi j‡¶¨ 2015 mv‡ji ïiæ‡ZB
formulated and accordingly strategy were taken at the Head j¶¨gvÎv wba©viYc–e©K Zv AR©‡b cÖavb Kvh©vjq I gvV ch©v‡q
office and grassroots level to reduce the amount of classified Kg©cwiKíbv cÖYqb I Z`vbyhvqx Kvh©µg MÖnY Kiv nq| FY Av`vq
e„w×i j‡¶¨ eQ‡ii ïiæ‡ZB e¨vs‡Ki kxl©-10 wU K‡i FY Av`vq
loans and written-off loans. Round the year monitoring
gwbUwis Gi `vwqZ¡ DaŸ©Zb wbe©vnx‡`i gv‡S e›Ub K‡i eQie¨vcx
activities continued to increase classified loan recovery
gwbUwis Ae¨vnZ ivLv nq| mv‡K©j, AÂj I kvLv ch©v‡q wiKfvwi
through allocating the onus of recovering top-20 classified †mj MVbc~e©K eQie¨vcx gwbUwis Ae¨vnZ ivLv nq| GQvovI, 2015
loans to each higher executive of the bank. Besides, 2015 mvj‡K ÔTime for Recovery’ (‡Ljvcx FY Av`vq el©-2015)
was declared as ‘Time for Recovery. In addition to 10th †NvlYv Kivmn 10 b‡f¤^i †_‡K 9 wW‡m¤^i ch©šÍ mgq‡K †Ljvcx FY
November 2015 to 9th December 2015 was declared as ‘Loan Av`vq gvm †NvlYv K‡i FY Av`vq Kvh©µg cwiPvwjZ nq Ges DaŸ©Zb
Recovery Month.’’ Special Recovery activities were carried on wbe©vnx‡`i mgš^‡q Uxg MVb K‡i wewfbœ mv‡K©‡j Mgbc~e©K we‡kl FY
by forming higher excutive recovery team. Av`vq Kvh©µg cwiPvwjZ nq|

Comparative Position of Loan Recovery in 2014 & 2015 2014 I 2015 mv‡ji FY Av`v‡qi Zzjbvg~jK wPÎ
Total loans and advance (including staff loan) on 31-12-2014 wW‡m¤^i 2014 Ges 2015 wfwËK e¨vs‡Ki ‡gvU FY I AMÖx‡gi
and 31-12-2015 stood at Tk. 23508.57 crore and Tk.24480.18 (Kg©Pvix FYmn) cwigvY wQj h_vµ‡g 23,508.57 †KvwU Ges
crore. Against this, the amount of classified loans was 24,480.18 †KvwU UvKv| Gi wecix‡Z †kÖYxK…Z F‡Yi cwigvY wQj h_
Tk. 3965.95 Crore and Tk.4224.08 crore which is 16.87% vµ‡g 3,965.95 †KvwU Ges 4,224.08UvKv hv †gvU FY I AMÖx‡gi
and 17.26% of total loans and advances. In the year 2015, h_vµ‡g 16.87% Ges 17.26% | 2015 mv‡j ‡kÖYxK…Z F‡Yi evwl©K
classified loan recovered Tk.1092.79 crore which was 43.71% Av`vq j¶¨gvÎv 2,500.00 †KvwU UvKvi wecix‡Z 1,092.79 †KvwU
of yearly recovery target of Tk.2500.00 crore. UvKv Av`vq nq, hv j¶¨gvÎvi 43.71%|

Comparative Recovery Position of Classified and Overdue 2014 Ges 2015 m‡bi †kÖYxweb¨vwmZ I †gqv`yËxY© FY Av`v‡qi
Loans in 2014 and 2015: Zzjbvg~jK wPÎ wb¤œiƒc:

Taka in crore

2014 2015

Cash Regular- Total Cash Regular- Total increace/


Category Write-off Write-off
recovery ization recovery recovery ization recovery decrease
Classified 445.09 645.01 129.48 1219.58 366.31 512.89 213.59 1092.79 (126.79)

Overdue 409.34 9.59 0.00 418.93 213.96 142.57 0.00 356.53 (62.40)

Total. 854.43 654.60 129.48 1638.51 580.27 655.46 213.59 1449.32 (189.19)

Loan Recovery Plan 2016 FY Av`vq cwiKíbv 2016


Recovery target for all the circles and corporate branches was bZzb eQ‡ii ïiæ‡ZB cÖavb Kvh©vjq KZ©„K mKj mv‡K©j Ges K‡c©v‡iU
fixed at the begining of the year by Head Office. Follow up of kvLvq †kÖYxK…Z Ges Ae‡jvcbK…Z FY Av`vq j¶¨gvÎv wba©viY Kiv
recovery target achievement is going on in every month by n‡q‡Q| FY Av`vq j¶¨gvÎv AwR©Z n‡”Q wKbv Zv cÖwZgv‡m cÖavb
Recovery and NPA Management Division. Besides, a circular Kvh©vj‡qi wiKfvwi GÛ GbwcG g¨v‡bR‡g›U wWwfkb KZ©„K d‡jv-
has been issued which pertains to the recovery strategy of Avc Kiv n‡”Q| cvkvcvwk GZ`wel‡q †kÖYxK…Z FY Av`vq Kjv‡KŠkj
classified and written off loan. m¤^wjZ cwicÎ Rvix Kiv n‡q‡Q|

157
Inter-Branch Reconciliation AvšÍ:kvLv wnmve mgš^q
Different steps have been taken to reduce unreconciled e¨vs‡Ki AvšÍ:kvLv wnmvemgy‡ni Amgwš^Z fzw³mgyn n«vmK‡í wewfbœ
entries of inter branch reconciliation accounts of the Bank.
Intensive monitoring both at the field and Head office c`‡ÿc MÖnY Kiv n‡q‡Q| G j‡ÿ¨ kvLv Ges cÖavb Kvh©vjq Dfq
level has been carried out. Different task force has been ch©v‡q Mfxi ch©‡eÿ‡Yi e¨e¯’v †bqv n‡q‡Q| e¨vs‡Ki Af¨šÍ‡i wewfbœ
set up inside the bank for effective follow up and reducing
unreconciled entries. The Reconciliation Division of the Kvh©wbe©vnx `j MVb Ges djcÖmy d‡jvAv‡ci gva¨‡g Amgwš^Z fzw³
Bank has remarkable strides in terms of automation using Kgv‡bvi e¨e¯’v †bqv n‡q‡Q| e¨vs‡Ki wiKbwmwj‡qkb wWwfkbwU Z_¨
computer technology having web based software along
with online reconciliation software capable of making inter
cÖhyw³ wfwËK I‡qe†eRW mdUIq¨vi e¨env‡ii gva¨‡g AvšÍ:kvLv
branch transactions reconciled and preparing necessary †jb‡`‡bi mgš^q K‡i †g, 2013 mv‡ji †g gvm †_‡K cÖ‡qvRbxq
statements since May, 2013. The bank management has
weeiYx ˆZix K‡i Avm‡Q|
taken proper steps to reconcile the unadjusted amount as
early as possible.

m) Help Desk W) †ní †W¯‹


Agrani Bank Limited provides all time help desk service to its AMÖYx e¨vsK wjwg‡UW-Gi cÖavb Kvh©vj‡q ¯’vwcZ mve©ÿwYK †ní †W‡¯‹i
online branches. In addition to that, help desk is prevaling gva¨‡g AbjvBbf‚³ kvLv¸‡jv‡K †mev cÖ`vb Kiv n‡q _v‡K| GQvov,
in every branches. Any problem of the customer can be e¨vs‡Ki cÖwZwU kvLvq GKwU †ní †W¯‹ i‡q‡Q| MÖvnK‡`i †h †Kvb
primarily resolved by the help desk. ai‡Yi mgm¨vi cÖv_wgK mgvavb †ní †W‡¯‹i gva¨‡g cÖ`vb Kiv nq|
n) Branch Expansion
X) kvLv m¤cÖmviY
The total number of Bank’s branches stands at 930 at December
wW‡m¤^i 2015 †k‡l e¨vs‡Ki kvLv msL¨v `uvovq 930wU hv 2014 m‡b
2015 which was 921 in 2014. It has been planned to open more
branches in all upazillas as well as all commercially important
wQj 921wU| AvMvgx w`‡b †`‡ki mKj Dc‡Rjvmn ¸iæZ¡c~Y© Ab¨vb¨
places of the country in the coming years so that the Bank evwYwR¨K GjvKvq e¨vs‡Ki kvLv †Lvjvi cwiKíbv i‡q‡Q hv‡Z mvaviY
can reach its service to the wider group of clients all over the gvbyl‡K AviI e¨vswKs myweav †`qv hvq Ges MÖvnK‡`i N‡i N‡i e¨vswKs
country. †mev †cuŠ‡Q †`qv hvq|

Financial Performance Avw_©K djvdj


Total Operating Income †gvU Acv‡iwUs Avq
The Bank’s total operating income stood at Tk. 1,991.56 crore 2015 mv‡j e¨vs‡Ki Acv‡iwUs Avq wQj 1,991.56 †KvwU UvKv|
in 2015.

Total Operating Expenditure †gvU Acv‡iwUs e¨q


The Bank’s total operating expenditure was Tk 1,114.09 crore 2014 mv‡ji 876.00 †KvwU UvKv †gvU Acv‡iwUs e¨‡qi ¯’‡j 2015
in 2015 as against Tk 876.00 crore in 2014 which indicates an mv‡j e¨vs‡Ki Acv‡iwUs e¨‡qi cwigvY wQj 1,114.09 †KvwU UvKv|
increase of Tk. 238.09 crore (i.e. 27.18 percent higher) over G‡ÿ‡Î e¨q 238.09 †KvwU UvKv ev 27.18 kZvsk e„w× †c‡q‡Q| GB
the last year. This is mainly due to the increase of staff salary e¨q e„w×i KviY g~jZ miKvwi KvVv‡gvi mv‡_ Zvj wgwj‡q †eZb fvZv
in line with the government policy and new recruitment of e„w×, Ges bZzb Kg©KZ©v wb‡qvM|
officers.

Farming of chicken and duck by a farmer financed by Agrani Bank Limited.

158
ANNUAL REPORT 2015

Net Interest Income bxU my` Avq


The Bank’s net interest income is Tk. 69.25 crore in 2015. 2015 mv‡j e¨vs‡Ki bxU my` Av‡qi cwigvY wQj 69.25 †KvwU UvKv|
Interest earned on loan is the principal component of my` Av‡qi eo AskB FY n‡Z cÖvß my`| my` e¨‡qi eo AskB n‡jv
interest income. However, interest cost of deposits was the
main component of interest expenses. Avgvb‡Zi Dci cÖ`Ë my`|

Operating Profit cwiPvjb gybvdv


During 2015, the Bank’s total operating profit before 2015 mv‡j e¨vs‡Ki cwiPvjb gybvdvi (G¨vgiUvB‡Rkb, mwÂwZ Ges
amortization, provision and tax stood at Tk 878 crore. Ki c~e©) cwigvY wQj 878 †KvwU UvKv|

Appropriation of Profit gybvdvi e›Ub


During 2015, Bank earned Tk. 744.52 crore before provision and tax 2015 mv‡j e¨vsK Ki I mwÂwZ avh© c~e© gybvdv AR©b K‡i 744.52
which has been appropriated in the following manner: †KvwU UvKv hvi e›Ub Ae¯’v wb¤œiƒc:
Taka in crore †KvwU UvKvq
Particulars 2015 2014 weeiY 2015 2014
Profit/(Loss) before provision & tax 744.52 941.00 Ki I mwÂwZ avh© c~e© gybvdv 744.52 941.00
Provision for loans and advances 555.79 409.02 F‡Yi Rb¨ mwÂwZ 555.79 409.02
Other provision Ab¨vb¨ mwÂwZ
248.62 361.49 248.62 361.49
(Including incentive bonus) (†evbvm mn)
Total provision 804.41 770.51 †gvU mwÂwZ 804.41 770.51
Net profit/(loss) before tax (59.89) 170.49 Ki c~e©eZx© bxU gybvdv (59.89) 170.49
Provision for tax 13.1 K‡ii Rb¨ mwÂwZ 13.1
Current tax 13.10 12.60 PjwZ Ki 13.10 12.60
Deferred tax (138.30) (40.73) wejw¤^Z Ki (138.30) (40.73)
Total provision for tax 125.20 (28.13) K‡ii Rb¨ †gvU mwÂwZ 125.20 (28.13)
Net profit/(loss) after tax 65.31 198.62 Ki cieZx© bxU gybvdv 65.31 198.62
Add: Retained surplus from the ‡hvM: c~e©eZx© eQ‡ii
(11.74) (224.93) (11.74) (224.93)
previous year iw¶Z gybvdv
Available for appropration 53.57 (26.31) e›Ub‡hvM¨ gybvdv 53.57 (26.31)
Appropriation of profit gybvdv e›Ub
Statutory reserve - 34.10 mswewae× Znwej - 34.10
Divident paid to govt. 0.50 - †evbvm †kqvi Bmy¨ 0.50 -
Previous year adjustment 40.28 48.67 c~e©eZx© eQ‡ii mgš^q 40.28 48.67
Retained surplus 93.35 (11.74) DØ„Ë gybvdv 93.35 (11.74)

Capital Adequacy Ratio g~jab chv©ßZv AbycvZ


As per provisions of Section 13(2) of the Bank Companies e¨vsK †Kv¤úvwb AvBb 1991 mv‡ji aviv 13(2) Ges evsjv‡`k
Act 1991 and BRPD circulars 1, 10, 5 and 11 dated 8 January e¨vs‡Ki weAviwcwW mvKz©jvi (bs 1, 10, 5 I 11; ZvwiL h_vµ‡g
1996, 24 November 2002, 14 May 2007 and 14 August 2008 8 Rvbyqvwi 1996, 24 b‡f¤^i 2002, 14 †g 2007 Ges 14 AvMó
respectively issued by Bangladesh Bank, adequate capital 2008) Abyhvqx mKj evwYwR¨K e¨vsK‡K chv©ß g~jab AbycvZ i¶v
needs to be maintained by all commercial banks to operate
Ki‡Z nq| e¨vs‡Ki msiw¶Ze¨ †Kvi g~ja‡bi cwigvY 1323.44
†KvwU UvKv hvi wecix‡Z e¨vsK msi¶Y K‡i‡Q 1746.48 †KvwU UvKv|
the banking activities smoothly. The Bank maintained
wi¯‹ I‡q‡UW A¨v‡m‡Ui 5 kZvs‡ki ¯’‡j 26468.69 †KvwU UvKv wi¯‹
core capital of Tk. 1746.48 crore against requirement of I‡q‡UW G¨v‡m‡Ui 6.60 kZvsk i‡q‡Q| †gvU msiw¶Ze¨ g~jab
Tk. 1323.44 crore 6.60 percent of RWA of Tk. 26468.69 (†Kvi g~jab + mvwcø‡g›Uvwi g~jab + AwZwi³ mvwcø‡g›Uvwi g~jab)
crore against requirement of 5 percent RWA) and total 2523.80 †KvwU UvKvi wecix‡Z msiw¶Z g~ja‡bi cwigvY 2646
capital (Tier-1+Tier-2+Tier-3) of Tk. 2523.80 crore against .87 †KvwU UvKv| wewa †gvZv‡eK 400 †KvwU A_ev wi¯‹ I‡q‡UW

159
requirement of Tk. 2646.87 crore (9.54 percent of RWA of A¨v‡m‡Ui 10 kZvsk Gi g‡a¨ †hwU †ewk Zvnvi mgcwigvY g~jab
Tk.26468.69 crore against requirement 10 percent of RWA or msi¶‡Yi wb‡`©kbv i‡q‡Q| Gi wecix‡Z e¨vs‡Ki msiw¶Z g~ja‡bi
Tk. 400 crore, whichever is higher). Thus, there was a total cwigvY wi¯‹ I‡q‡UW A¨v‡mU 26468.69 †KvwU UvKvi 9.54 kZvsk|
capital shortfall of Tk. 123.07 crore with a core capital of Tk. Z`vbyhvqx g~jab shortfall cwigvY 123.07 †KvwU UvKv Ges Ô†Kvi
1776.45 crore. K¨vwcUvjÕ Gi cwigvY 1776.45†KvwU UvKv|

Agrani Bidesh Jawar Loan (ABJL) Project AMÖYx we‡`k hvIqvi †jvb cÖKí (ABJL)
Remittances sent by migrant workers have been playing ‰e‡`wkK gy`ªv evsjv‡`‡ki A_©bxwZ‡Z Ges RbM‡Yi RxebhvÎvi gvb
an increasingly significant role in the economic growth
and livelihoods of the people of Bangladesh. The remitted
Dbœq‡b e¨vcK f‚wgKv i‡q‡Q | ‰e‡`wkK wewbgq wiRvf©, gyjabx Avq,
funds contribute critically to our national economy by ¶z`ª wk‡íi weKvk, `wi`ªZv `~ixKi‡Y, Kg©ms¯’v‡bi m„wó Ges wRwWwc
increasing the foreign exchange reserve, per capita income e„wׇZ avivevwnKfv‡e Ae`vb †i‡L Pj‡Q| 2015 mv‡j cÖevmx Kg©xiv
and employment opportunities. In 2015, remittances
amounted to 15,312.17 million US dollars. The government †`‡k 15,312.17 wgwjqb BDGm Wjvi cvwV‡q‡Qb| wewfbœ miKvix I
of Bangladesh has used these funds to pay official and †emiKvix Avg`vbx wej, ‰e‡`wkK mvnv‡h¨i Dci wbf©ikxjZv Kgv‡Z
non-governmental import bills, as well as repay foreign
debt with interest. Remittances received in hard currency
Ges wewfbœ we‡`kx `vq-‡`bv cwi‡kv‡a mnvqK f‚wgKv cvjb Ki‡Q|
have helped the government to reduce its dependence Avw_©K evRvi Kvh©µg‡K MwZkxj Kivi Rb¨I Ae`vb ivL‡Q Ges
on foreign aid. These international fund transfers have also cÖZ¨¶ g~jab cÖevn e„w× I cÖvwšÍK e¨enviKvix Ges wewb‡qvMKvix‡`i
contributed to the expansion of financial market activities
and the development of payment systems in Bangladesh by Rb¨ D³ Znwej weZi‡Yi gva¨‡g †c‡g›U wm‡÷‡gi Dbœqb mvab K‡i
enhancing direct capital flows and distributing these funds _v‡K| cÖevmx‡`i cwiev‡ii Av_©-mvgvwRK Ae¯’v Dbœq‡b †iwg‡UÝ Avq
to users and investors. Remittances have had a positive
impact on the socio-economic conditions of the migrants’
BwZevPK f‚wgKv ivL‡Q| GQvovI BDGm Wjv‡ii wecix‡Z evsjv‡`kx
families and have served to make the Bangladeshi currency UvKv‡K kw³kvjxKi‡Y †iwg‡UÝ Avq mvnvh¨ K‡i _v‡K|
stronger against the US dollar.
Project Objectives and Functions cÖ‡R± MV‡bi j¶¨ I Kvh©µg
Nearly one crore Bangladeshi citizens live in foreign evsjv‡`‡ki cÖvq 1 †KvwU gvbyl AvR cÖev‡m| cÖwZeQi M‡o 5 ‡_‡K 6
countries. Every year, almost 5 to 6 lac people go abroad jÿ gvbyl we‡`‡k PvKwi Ki‡Z hvq | MZ eQ‡i ‡`‡k Zv‡`i cvVv‡bv
for employment. The amount of remittance sent by them is
approximately 15 billion dollars. As a result, Bangladesh does †iwg‡U‡Ýi cwigvb cÖvq mv‡o 15 wewjqb Wjvi| GB wecyj cwigv‡Yi
not require foreign assistance to meet its foreign currency ‰e‡`wkK gy`ªv Avgv‡`i we‡`kx mvnv‡h¨i gyLv‡cÿxZv‡K Kwg‡q w`‡q‡Q|
needs. Most of our migrant workers have to mobilize the cost
of going abroad by either selling their property or borrowing
A‡bK gvbyl we‡`k hvevi A_© msMÖn K‡i ¯’vqx m¤ú` wewµ K‡i A_
money from NGOs or local moneylenders at high rates of ev gnvRb ev GbwRI†`i KvQ †_‡K Pov my‡` avi wb‡q| G mgm¨vi
interest. Consequently, provision of cheaper institutional mgvavbK‡í AMÖbx e¨vsK ÔAMÖYx we‡`k hvIqvi †jvbÕ bv‡g GKwU cÖKí
loans by Agrani Bank will be very helpful for poor workers
who intend to go abroad and would also serve to increase Pvjy K‡i‡Q| GB cÖKí †_‡K hw` GB gvbyl¸‡jvi GKwU Ask‡K †jvb
their remittances. Agrani Bank Limited has launched the †`qv hvq, Zvn‡j †`‡ki ¯^í Av‡qi gvbyl¸‡jvi DcKvi Kiv n‡e
project named “Agrani Loan for Overseas Worker (ALOW)” for Ges †mB mv‡_ we‡`kMvgx GB gvbyl¸‡jvi cvVv‡bv A‡_© †iwg‡U‡Ýi
the benefit of citizens who intend to go abroad for jobs. The
bank has provided close support to them by lending money cwigvb I A‡bK ¸Y e„w× cv‡e| cvm‡cvU©, ‡Uªwbs, wfmv, ¯^v¯’¨ cix¶v,
from the very beginning to meet all requirements inclusive wegv‡bi wU‡KU cÖwZwU Kv‡Ri cwiKíbv †_‡KB AMÖYx e¨vsK GB me
of obtaining their passport, training, visa, medical tests and Kv‡Ri Rb¨ †jvb w`‡q Zv‡`i cv‡k _vKvi wm×všÍ wb‡q‡Q| eZ©gv‡b GB
air-ticket. Approximately 2 crore taka have been disbursed to
date from 54 Agrani Bank branches across the country under cÖK‡íi AvIZvq 54wU kvLv †_‡K cÖvq 2 †KvwU UvKvi FY weZiY Kiv
the ALOW Project and new loan proposals are in progress. n‡q‡Q Ges Av‡iv wKQz FY cÖ¯Íve cÖwµqvaxb i‡q‡Q|
Moreover, ABL launched another project named “Agrani we‡`‡k D”P wkÿvi Rb¨ AMÖYx e¨vsK wjwg‡UW †`‡k cÖ_g ÔAMÖYx
Overseas Education Loan (AOEL)” for the benefit of citizens
who intend to go abroad for study. Approximate 28 lac taka we‡`‡k D”P wkÿvi †jvbÕ bv‡g GKwU cÖKí Pvjy K‡i‡Q| eZ©gv‡b GB
has been disbursed to date from 8 of our branches across the cÖK‡íi AvIZvq 8wU kvLv †_‡K cÖvq 28 jÿ UvKvi FY weZiY Kiv
country under the AOEL Project and further loan proposals
n‡q‡Q Ges Av‡iv wKQz FY cÖ¯Íve cÖwµqaxb i‡q‡Q|
are being processed.

Future plan of the project cÖ‡R‡±i fwelr cwiKíbv


Many brilliant students from deprived families would get chance †`‡ki ¯^í Av‡qi cwiev‡ii †gavex QvÎ I QvÎxiv †`‡ki wewfbœ
to have admission for higher studies in universities abroad. It is wek¦we`¨vj‡q covi wPšÍv K‡i, Ges my‡hvMI nq, †m‡ÿ‡Î Zv‡`i‡K 3
planned to lend them an additional 3 to 5 lac taka for studying in †_‡K 5 jÿ UvKv ‡jvb †`qvi cwiKíbv MÖnY Kiv n‡q‡Q| ZvQvovI

160
ANNUAL REPORT 2015

foreign countries. Moreover, skilled migrant workers will also be hviv Bwg‡MÖ›U n‡Z Pvq Zv‡`i‡K I G cÖK‡íi AvIZvi †jvb †`qvi
eligible to avail of this loan in the near future. cwiKíbv i‡q‡Q|
Disbursement and Recovery of Project Loans cÖ‡R‡±i FY weZiY I Av`vq
Agrani Loan for Overseas Worker (ALOW)
Total number of loans disbursed 87
Total loan disbursed amount 2,00,30,300 TK. (up to 30-12-2015)
Total recovery amount 85,61,454 TK. (up to 30-12-2015)
Total number of branches that have disbursed loans 54
Rate of interest 9.00%

Agrani Overseas Education Loan (AOEL)


Total number of loans disbursed 8
Total loan disbursed amount 28,00,000 TK. (up to 30-12-2015)
Total recovery amount 2,18,800 TK. (up to 30-12-2015)
Total number of branches that have disbursed loans 8
Rate of interest 9.00%

Anti-Money Laundering and terrorist financing gvwbjÛvwis I mš¿vmx Kv‡R A_©vqb cÖwZ‡iva cwicvjb
Money laundering is the process by which proceeds from a gvwbjÛvwis Ggb GKwU cÖwµqv, hvi gva¨‡g Acivag~jK Kvh©µg
criminal activity are disguised to conceal their illicit origins. n‡Z AwR©Z A_© I Zvi Drm †Mvcb Kivi cÖqvk †bqv nq| GUv
It is one of the major risks in banking business as well as e¨vswKs e¨emvi Ab¨Zg SuywK| GB SzuwK †gvKv‡ejvi Rb¨ gvwbjÛvwis
heinous for the country. For mitigating the risk ABL has I mš¿vmx Kv‡R A_©vqb cÖwZ‡iv‡a AMÖYx e¨vsK wjwg‡UW Gi cÖavb
formed Central Comliance Unit (CCU) at Head Office. The Bank Kvh©vj‡q GKRb cÖavb gvwbjÛvwis cÖwZ‡iva cwicvjb Kg©KZ©v
has also Chief Anti-Money Laundering Compliance Officer (CAMLCO), `yBRb Dc-cÖavb gvwbjÛvwis cÖwZ‡iva cwicvjb Kg©KZ©v
(CAMLCO), two Deputy CAMLCOs,RAMLCO, BAMLCO and (DCAMLCOs), AvÂwjK Kvh©vj‡q AvÂwjK gvwbjÛvwis cÖwZ‡iva
Reporting Officers at Head Office, Zonal Office and branch cwicvjb Kg©KZ©v (RAMLCO), kvLv ch©v‡q kvLv gvwbjÛvwis cÖwZ‡iva
level respectively for countering Anti-Money Laundering and cwicvjb Kg©KZ©v (BAMLCO) Ges `yB ev Z‡ZvwaK wi‡cvwU©s Awdmvi
Combating Financing of Terrorism activities .The BAMLCO wb‡qvwRZ i‡q‡Qb| m‡›`nRbK †jb‡`b (GmwUAvi) wPwýZKiY,
and the Reporting Officers review cash transactions of the wmwUAvi Ges †KIqvBwm I wUwc nvjbvMv` Kivi wbwg‡Ë BAMLCO
accounts to verify the suspicious transactions and update I wi‡cvwU©s AwdmviMY kvLvi bM` †jb‡`b ch©v‡jvPbv K‡ib| Zviv
KYC ( Know Your Customer) and TP (Transaction Profile).They wbqwgZfv‡e kvLvi wmwUAvi Ges GmwUAvi (hw` _v‡K) †K›`ªxq
also send CTR (CashTransaction Report) and STR (Suspicious cwicvjb BDwb‡U `vwLj K‡ib| e¨vs‡K eZ©gv‡b ÔgvwbjÛvwis I mš¿vmx
Transaction Report) regularly (if any).ABL has its policy manual, Kv‡R A_©vqb cÖwZ‡iva cwicvjb bxwZ I c×wZ-MvBW eyKÕ - kxl©K
titled “Compliance of Anti-Money Laundering and Combating GKwU g¨vby‡qj i‡q‡Q| gvwbjÛvwis I mš¿vmx Kv‡R A_©vqb cÖwZ‡iva
Financing of Terrorism - Guide Book”. Regular training is given cwicvj‡b `¶Zv I m‡PZbZv e„w×i j‡¶¨ e¨vs‡Ki wbe©vnxe„›` I
to the Executives and Officers of the Bank for the improvement Kg©KZ©v‡`i‡K wbqwgZfv‡e cÖ‡qvRbxq cÖwk¶Y cÖ`vb Kiv n‡”Q|
of awareness and skill on AML & CFT.The Bank maintains the kvLvmg~n †KIqvBwm, wUwc, wmwUAvi I GmwUAvi msµvšÍ †iKW© h_
records of KYC,TP, CTR and STR properly.ABL is committed to vh_fv‡e msi¶Y Ki‡Q| evsjv‡`k e¨vs‡Ki wb‡`©kbvi Av‡jv‡K AMÖYx
the highest standard of AML & CFT as per the instructions of e¨vsK wjwg‡UW GGgGj A¨vÛ wmGdwU msµvšÍ Kvh©µg cÖwZ‡iva
Bangladesh Bank. cwicvj‡bi †¶‡Î m‡ev©”P gvb`‡Û DbœxZKi‡Y cÖwZkÖywZe×|
Contribution to National Exchequer RvZxq ivR¯^ Lv‡Z Ae`vb
The Bank pays income taxes regularly on its income. It also e¨vsK Zvi Av‡qi Ici wbqwgZ AvqKi cwi‡kva K‡i _v‡K| e¨vs‡Ki
deducts income tax, value added tax and excise duty at wewfbœ ai‡Yi cwi‡kva ev mvwf©m cÖ`v‡bi mgq AvBbvbyhvqx AvqKi,
source as per law from various payments and services and
g~j¨ ms‡hvRb Ki Ges AveMvix ïé KZ©b K‡i Zv miKvwi †KvlvMv‡i

161
deposits the same to the national exchequer. ABL pays tax Rgv Kiv nq| e¨vsK Zvi Kg©x‡`i c‡¶ AvqKi cwi‡kva K‡i _v‡K|
on behalf of its employees. Total payments to the national 2015 Ges 2014 mv‡j RvZxq ivR¯^ Lv‡Z Rgvi cwigvY wb¤œiƒc:
exchequer during 2015 and 2014 are shown below:

Taka in crore
Particulars 2015 2014
AIT 47.11
Payment of tax on Bank’s income 128.50 175.10
Staff income tax paid by the bank 0.84 0.13
Tax deducted at source and deposited 240.72 144.27
Vat deducted source and deposited 33.69 43.07
Excise duty deducted and deposited 42.23 40.49
Total 493.09 403.06

Outlook for 2016 m¤¢vebvi 2016


In spite of tremendous competitions and challenges, Zxeª cÖwZ‡hvwMZv Ges bvbvwea P¨v‡jÄ _vKv m‡Ë¡I e¨vsK cÖvq mKj
the Bank has made progress in almost all spheres of ¸iæZ¡c~Y© †¶‡ÎB DbœwZ Ki‡Z m¶g n‡q‡Q| e¨vsK G mKj cÖwZ‡hvwMZv
business. To meet the challenges and to stay competitive,
it has upgraded the skills of its workforce and introduced
Ges P¨v‡jÄ †gvKvwejvq Kgx©‡`i `¶Zv e„w× K‡i Ges †hLv‡b hZUv
automation where possible, in its operation. It will continue m¤¢e AvaywbKvqb K‡i e¨vswKs Kvh©µg Pvwj‡q hv‡”Q| e¨vsK m¤úwËi
to focus on achieving steady growth, by upgrading the ¸YMZgvb Dbœqb, D”PZi my` Avq, DbœZZi †mev I Kg© cwiPvjbvi
quality of assets, augmenting interest and rendering quality gva¨‡g Gi e¨emvi cÖe„w× AR©‡b `„pZvi mv‡_ GwM‡q hv‡e| GQvovI
service and operation.Moreover, it will constantly persuit the `¶ Rbej, e¨emvwqK mykvmb I SzuwK e¨e¯’vcbvi j‡¶¨ cÖwZwbqZ myôz
policies of recruitment of skilled manpower, good corporate
governance practices, and sound risk management.
cwiKíbv MÖnY Kiv n‡e|

The Bank will make every possible effort to earn high D”P Acv‡iwUs gybvdv AR©b, by¨bZg g~jab msi¶Y, †kÖbxweb¨vwmZ
operating profit, maintain minimum capital adequacy, bring FY me©wb¤œ ch©v‡q bvwg‡q Avbv Ges mKj LvZ †hgb- Avg`vwb ißvwb
classified loan at a minimum level and to do best in all sectors
including deposit, credit, import, export, remittance, cost of
e¨emv, †iwgU¨vÝ AvniY, Znwej e¨q msi¶Y BZ¨vw` wel‡q mdjZv
fund etc. Moreover, we want to make utmost contribution to AR©‡b me©vZ¥K cÖ‡Póv Ae¨vnZ _vK‡e| GQvovI mgv‡Ri Dbœq‡b
the society in which we operate. e¨vsK h_vmva¨ f‚wgKv cvjb Ki‡e|

Preparation of Financial Statements wnmve cÖ¯‘ZKiY


The financial statements, prepared by the Bank in accordance evsjv‡`k GKvDw›Us ÷vÛvW© (weGGm), evsjv‡`k wdbvbwmqvj
with the Bangladesh Accounting Standards (BAS) and wi‡cvwU©s ÷vÛvW© (weGdAviGm) Ges evsjv‡`k e¨vs‡Ki weAviwcwW
Bangladesh Financial Reporting Standards (BFRS) and in the
format prescribed by Bangladesh Bank vide BRPD Circular
mvKz©jvi bs 14, ZvwiL 25 Ryb 2003 G cÖ`Ë QK †gvZv‡eK GB
No. 14 dated 25 June 2003, give a true and fair view of the Avw_©K weeiYx ˆZix Kiv n‡q‡Q hv‡Z 2015 mv‡ji †k‡l cÖYxZ
financial statements as at December 31, 2015. The results of wnmv‡e e¨vs‡Ki cÖK…Z I mwVK wPÎ dz‡U D‡V‡Q| e¨emvwqK Kvh©µ‡gi
its operations and its cash flows for the year ended December djvdj Ges bM` cÖevn BZ¨vw` mwVKfv‡e cÖwZdwjZ n‡q‡Q| e¨vsK
31, 2015 comply with the applicable sections of The Bank †Kv¤úvwbR G¨v± 1991 Ges Ab¨vb¨ mswkøó weavb I AvBbvbymv‡i
Companies Act 1991 and other applicable laws and regulations.
The financial statements have been duly certified by the
wnmve cÖ¯‘Z Kiv n‡q‡Q hv wewae× wbix¶KMY KZ©„K h_vh_fv‡e
statutory auditors. cÖZ¨vqb Kiv n‡q‡Q|

Dividend Declaration jf¨vsk †NvlYv


The Board of Directors did not recommend any dividend for cwiPvjbv cwil` KZ…©K 2015 m‡bi Rb¨ †Kvb jf¨vsk cª`v‡bi
the year 2015. mycvwik Kiv nqwb|

Annual General Meeting evwl©K mvaviY mfv


The 9th Annual General Meeting of the Bank will be held on e¨vs‡Ki beg evwl©K mvaviY mfv 20 Ryb 2016 ZvwiL `ycyi 1.30Uv
20th June 2016 at 1.30 PM Board Room, Agrani Bank Limited, AMÖYx e¨vsK wjwg‡U‡Wi †evW© iæg, XvKvq AbywôZ n‡e|
Dhaka.

162
ANNUAL REPORT 2015

Appointment of Auditors wbix¶K‡`i wb‡qvM


Hoda Vasi Chowdhury & Co., Chartered Accountants and û`v fvwm †PŠayix GÛ †Kvs, PvU©vW© GKvD›U¨v›Um Ges G. Kv‡kg GÛ
A.Qasem & Co., Chartered Accountants have served as
†Kvs. PvU©vW© GKvD›U¨v›Um MZ wZb eQi hver GK bvMv‡o e¨vs‡Ki
the external Auditors of the Bank for the consecutive
three years ending 31 December 2015. As per Bangladesh ewntwbix¶‡Ki KvR Ki‡Q| evsjv‡`k e¨vs‡Ki wbqgvbymv‡i Zviv Avi
Bank’s gudelines they are not eligible for reappointment. cybtwb‡qvM‡hvM¨ bq| h_vixwZ ewntwbixÿK wb‡qv‡Mi cÖwµqv Pj‡Q|
Accordingly, appointment of external auditors is under cieZ©x evwl©K mvaviY mfvq evsjv‡`k e¨vs‡Ki ZvwjKv †_‡K ÔGÕ
process. Two new audit firms from among the `A’ catagory
audit firms enlisted by Bangladesh Bank will be appiontented
K¨vUvMwif‚³ `yÕwU AwWU dvg©‡K cieZ©x eQ‡ii Rb¨ bZzb wbix¶K
in the upcoming AGM for the next accounting year. wn‡m‡e wb‡qvM Kiv n‡e|

Acknowledgements K…ZÁZv ¯^xKvi


The success of the Bank during the year under review is mainly eZ©gvb eQ‡i e¨vsK †h mvdj¨ AR©b K‡i‡Q Zv wewfbœ chv©‡qi
attributable to the support and cooperation from the varied †÷K‡nvìvi‡`i Ae`vb Qvov m¤¢e n‡Zv bv| e¨vs‡Ki mv‡_ m¤úK© `„p
group of stakeholders. We gratefully acknowledge the support
provided by all valued customers who have been with us in Ki‡Y †h me mš§vwbZ MÖvnK AvšÍwiK wQ‡jb, cwil` Zuv‡`i cÖwZ K…ZÁ|
the course of our journey. We also place on record our thanks cwil` e¨vs‡Ki c„ô‡cvlK, ïfvbya¨vqx, miKvi, evsjv‡`k e¨vsK,
and gratitude to the patrons, well-wishers, Government of
R‡q›U óK †Kv¤úvwb I dvg© mg~‡ni †iwR÷ªvi‡K AvšÍwiK ab¨ev`
Bangladesh, Bangladesh Bank and Registrar of Joint Stock
Companies and Firms for their continued support and co- Ávcb Ki‡Q e¨vs‡Ki Awfó j¶¨ AR©‡b wbišÍi mg_©b I mn‡hvwMZv
operation. We are also thankful to Hoda Vasi Chowdhury & cÖ`v‡bi Rb¨| mgqgZ wbix¶v m¤úbœ Kivi Rb¨ cwiPvjbv cwil` Gi
Co., Chartered Accountants and A.Qasem & Co., Chartered
Accountants, the auditors of the Bank, for their timely
cÿ †_‡K û`v fvwm †PŠayix GÛ †Kvs, PvU©vW© G¨vKvD›U¨v›Um Ges G.
completion of audit of Financial Statements. Kv‡kg GÛ †Kvs, PvU©vW© G¨vKvD›U¨v›Um‡K ab¨ev` Rvbvw”Q|

The employees including the members of top management e¨vs‡Ki cwiPvjbv Kvh©µgmn mKj †¶‡Î Dbœqb Z¡ivwš^Z Kivi j‡¶¨
of the Bank came up with their total commitment in GKwbô _vKvi AsMxKv‡ii Rb¨ cwiPvjbv cwil` e¨vs‡Ki DaŸ©Zb
implementing the agenda for improvement in a number
of spheres of the banking operation. The Board takes this wbev©nxmn me©¯Í‡ii Kg©KZv© I Kg©Pvixe„›`‡K ab¨ev` Ávcb Ki‡Q|
opportunity to thank them all.

Finally, the Board would like to thank the respected cwi‡k‡l, cwiPvjbv cwil` mš§vwbZ †kqvi‡nvìviMY‡K we‡klfv‡e
shareholders and assure them that it will continue to add to ab¨ev` Ávcb Ki‡Q e¨vs‡Ki Dci wek¦vm I Av¯’v ¯’vc‡bi Rb¨| †mB
the shareholders’ Interest through further strengthening and mv‡_ Zv‡`i‡K cwiPvjbv cwil` Avk¦¯Í Ki‡Q †h, e¨vs‡Ki Kvh©µg
development of the Bank in which they have placed trust and kw³kvjx K‡i G cÖwZôv‡bi Dbœq‡bi gva¨‡g Zviv †kqvi‡nvìviM‡Yi
confidence. ¯^v_© myi¶vq cÖqvm Ae¨vnZ ivL‡e|

For and on behalf of the Board of Directors cwiPvjbv cwil‡`i c¶ †_‡K

Dr. Zaid Bakht W. Rv‡q` eL&Z


Chairman †Pqvig¨vb

163
Auditors’ Report
& Audited Financial Statements of
Agrani Bank Limited
Auditors’ Report
to the Shareholders of Agrani Bank Limited
We have audited the accompanying consolidated financial statements of Agrani Bank Limited and its subsidiaries (together referred to as
the “Group”) as well as the separate financial statements of Agrani Bank Limited (the “Bank”) which comprise the consolidated and separate
Balance Sheets as at 31 December 2015, consolidated and separate Profit and Loss Accounts, consolidated and separate Statements of
Changes in Equity and Cash Flow Statements for the year then ended, and a summary of significant accounting policies and other explanatory
information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements of the Group and also
separate financial statements of the Bank that give a true and fair view in accordance with Bangladesh Financial Reporting Standards (BFRSs)
as explained in note 2 and for such internal control as management determines is necessary to enable the preparation of consolidated
financial statements of the Group and also separate financial statements of the Bank that are free from material misstatement, whether
due to fraud or error. The Banking Companies Act, 1991 and the central bank (Bangladesh Bank) regulations require the management to
ensure effective internal audit, internal control and risk management functions of the Bank. The management is also required to make a self-
assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh Bank on instances of fraud and forgeries.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements of the Group and the separate financial statements of
the Bank based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing (BSAs). Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated
financial statements of the Group and the separate financial statements of the Bank are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial
statements of the Group and separate financial statements of the Bank. The procedures selected depend on our judgment, including the
assessment of the risks of material misstatement of the consolidated financial statements of the Group and the separate financial statements
of the Bank, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation
of consolidated financial statements of the Group and separate financial statements of the Bank that give a true and fair view in order to
design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements of the Group and the separate financial statements of the Bank.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements of the Group and also separate financial statements of the Bank give a true and fair
view of the consolidated financial position of the Group and the separate financial position of the Bank as at 31 December 2015, and of its
consolidated and separate financial performance and cash flows for the year then ended in accordance with Bangladesh Financial Reporting
Standards (BFRSs) as explained in note 2.
Emphasis of Matters
We draw attention to the following matters, though our opinion is not qualified in respect of the same:
1. As at 31 December 2015, the Bank has maintained risk based capital of BDT 2,507 crore (Solo: BDT 2,524 crore) against the requirement of
BDT 2,669 crore (Solo: BDT 2,647 crore) as specified by Bangladesh Bank vide BRPD Circular # 18 dated 21 December 2014 on Guidelines
on Risk Based Capital Adequacy (Revised Regulatory Capital Framework in line with Basel III) resulting a capital shortfall of BDT 162 crore
(Solo: BDT 123 crore). Although Basel Committee on Banking Supervision has prescribed a bank’s Total Minimum Capital (Tier 1 plus Tier
2) to be at least 8.0% of risk-weighted assets, but Bangladesh Bank, being the primary regulator of the banking sector in Bangladesh, as
a prudent measure increased the rate of required Total Minimum Capital of a bank to be 10% of its risk-weighted assets.
2. As disclosed in note 12.06 to the financial statements, the Bank has shown certain loans and advances aggregating total BDT 744.13
crore (2014: 626.68 crore) as Standard on the basis of stay orders from the Honorable High Court Division of the Supreme Court of
Bangladesh, although these loans are overdue for an extended period of time. The Bank is maintaining required provision for these loans
and advances @ 20% on year 1, 40% on year 2 and remaining 40% on year 3.
3. As disclosed in note 12.11 to the financial statements, the Bank reported certain investments amounting to BDT 300 crore of BEXIMCO
Limited, GMG Airlines Ltd and Unique Hotels and Resorts Ltd under sale and buy back agreements which have expired. The Bank has
created fresh lien on certain shares of Beximco Limited and Shine Pukur Ceramics Limited valuing BDT 68.84 crore. In addition the Bank
has maintained a provision of BDT 560 crore against provision requirement of BDT 689 crore, resulting provision shortfall of BDT 129
crore, which shall be kept in equal four quarterly installments by 31 December 2016 as per approval of Bangladesh Bank.
4. The Bank has made provision for current income tax for the year ended 31 December 2015 on the basis of minimum tax on total receipts
@ 0.3% in accordance with Section 16CCC of the Income Tax Ordinance 1984 considering the cumulative tax loss/refund claimed by the

166
ANNUAL REPORT 2015

Bank in earlier years, but deferred tax benefit has been recognized on provision for classified loans and advances at the normal income
tax rate of 42.5%. As disclosed in note 12.4, income tax assessments for few years are pending at various stages of income tax appeal
process and the final outcome of which are not yet certain. Future recovery of deferred tax assets are also contingent upon the tax
authority ultimately allowing the Bank to claim loans written off, as well as generating adequate taxable profit to offset these write offs.
Report on Other Legal and Regulatory Requirements
In accordance with the Companies Act, 1994, Securities and Exchange Rules 1987, the Banking Companies Act, 1991 and the rules and
regulations issued by Bangladesh Bank, we also report that:
(i) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose
of our audit and made due verification thereof;
(ii) to the extent noted during the course of our audit work performed on the basis stated under the Auditors’ Responsibility section
in forming the above opinion on the consolidated financial statements of the Group and the separate financial statements of the
Bank and considering the reports of the Management to Bangladesh bank on anti-fraud internal controls and instances of fraud and
forgeries as stated under the Management’s Responsibility for the Financial Statements and Internal Control:
(a) internal audit, internal control and risk management arrangements of the Group and the Bank as disclosed in the financial state
ments appeared to be materially adequate;
(b) nothing has come to our attention regarding material instances of forgery or irregularity or administrative error and exception
or anything detrimental committed by employees of the Bank and its related entities;
(iii) Consolidated financial statements of the Bank include six subsidiaries, namely Agrani Exchange House Private Limited, Singapore,
Agrani Remittance House SDN. BHD., Malaysia, Agrani Equity and Investment Limited, Agrani SME Financing Company Limited, Agrani
Remittance House Canada, Inc., Agrani Exchange Company (Australia) Pty Limited, reflect total assets of BDT 981,196,986 as at 31
December 2015 and total revenue of BDT 33,092,219 for the year ended 31 December 2015. These six subsidiaries of the Bank have
been audited by other component auditors who have expressed unqualified audit opinion. The results of these subsidiaries have been
properly reflected in the Group’s consolidated financial statements;
(iv) in our opinion, proper books of account as required by law have been kept by the Group and the Bank so far as it appeared from our
examination of those books and proper returns adequate for the purpose of our audit have been received from branches not visited by
us;
(v) the consolidated balance sheet and consolidated profit and loss account of the Group and the separate balance sheet and separate
profit and loss account of the Bank together with the annexed notes dealt with by the report are in agreement with the books of
account and returns;
(vi) the expenditures incurred was for the purpose of the Bank’s business;
(vii) the consolidated financial statements of the Group and the separate financial statements of the Bank have been drawn up in conformity
with prevailing rules, regulations and accounting standards as well as related guidance issued by Bangladesh Bank;
(viii) subject to the contents of Points 2 and 3 above under EOM and note 12 to the financial statements, adequate provisions have been
made for advance and other assets which are in our opinion, doubtful of recovery;
(ix) the records and statements submitted by the branches have been properly maintained and consolidated in the financial statements;
(x) the information and explanations required by us have been received and found satisfactory;
(xi) we have reviewed over 80% of the risk weighted assets of the Bank and spending over 15,000 person hours; and
(xii) As explained in Point 1 above under EOM and note 13.1 to the financial statements, as at 31 December 2015 the Bank has shortfall to
the tune of BDT 162 crore (Solo: BDT 123 crore) in Minimum Capital Adequacy Ratio (CAR) as required by the Bangladesh Bank.

Hoda Vasi Chowdhury & Co. A. Qasem & Co.


Chartered Accountants Chartered Accountants

Dhaka, 28 April 2016

167
Consolidated Balance Sheet
As at 31 December 2015

(Amount in Taka)
Notes 2014
PROPERTY & ASSETS 2015
(Restated)

Cash: 3(a) 33,906,174,363 30,342,063,577


Cash in hand (including foreign currencies) 4,219,114,679 4,379,875,165
Balance with Bangladesh Bank and its agent bank (including foreign currencies) 29,687,059,684 25,962,188,412

Balance with Other Banks and Financial Institutions: 4(a) 20,984,348,811 15,564,355,863
In Bangladesh 17,992,010,915 13,117,158,402
Outside Bangladesh 2,992,337,896 2,447,197,461

Money at Call and Short Notice: 5 1,592,226,706 5,030,000,000

Investments: 6(a) 212,571,911,540 158,586,411,548


Government 180,993,848,737 129,673,903,447
Others 31,578,062,803 28,912,508,101

Loans and Advances: 7(a) 243,233,420,727 233,854,867,888


Loans, cash credit & overdraft etc. 238,534,810,264 228,398,455,547
Bills discounted and purchased 4,698,610,463 5,456,412,341

Fixed Assets 8(a) 15,993,396,495 15,485,741,778


including land, building, furniture and fixtures:
Other Assets: 9(a) 38,048,464,116 36,893,671,010
Non-banking Assets: 9.7 2,711,516 -
Total Assets 566,332,654,274 495,757,111,664

LIABILITIES & CAPITAL


Liabilities:
Borrowings from Other Banks, Financial Institutions and Agents 10(a) 8,828,178,168 8,899,305,154

Deposit and Other Accounts: 11(a) 439,254,330,624 383,195,850,339


Current deposits & other accounts 41,212,415,869 38,211,367,848
Bills payable 4,842,152,720 5,071,756,034
Savings bank deposits 117,162,981,049 105,079,112,225
Fixed deposits 276,036,780,986 234,833,614,232
Other Liabilities: 12(a) 73,643,879,729 64,194,089,595
Total Liabilities 521,726,388,521 456,289,245,088

Capital/Shareholders’ Equity:
Paid-up capital 13.2 20,722,940,400 20,722,940,400

Reserve: 17,553,647,866 17,014,822,195


Statutory reserve 14(a) 5,892,088,720 5,884,775,514
General reserve 15(a) 591,243,663 59,731,198
Asset revaluation reserve 16(a) 11,070,315,483 11,070,315,483

Revaluation & amortization reserve 17(a) 5,553,129,909 2,026,328,697


Retained surplus/(deficit) 18(a) 757,972,390 (328,699,517)
Foreign currency translation reserve 19 18,572,128 32,471,795
Minority interest 20 3,060 3,006
Total Shareholders’ Equity 44,606,265,753 39,467,866,576
Total Liabilities and Shareholders’ Equity 566,332,654,274 495,757,111,664

168
ANNUAL REPORT 2015

Consolidated Off Balance Sheet Items


As at 31 December 2015

(Amount in Taka)
Notes
Contingent Liabilities: 2015 2014

Acceptances and endorsements 90,068,815,036 83,982,665,205


Letters of guarantee 21.1 5,587,477,880 10,554,398,823
Letters of credit 43,971,567,281 38,751,002,780
Bills for collection 21.2 22,276,206,205 22,643,450,000
Other contingent liabilities 21.3 5,507,814,670 4,434,512,602
Claims against the Bank not acknowledged as debt 12,725,749,000 7,599,301,000

Other commitments: - -
Documentary credit and short term trade-related transactions - -
Liability on account of outstanding forward exchange contract - -
Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -

Total Off-Balance Sheet Items 90,068,815,036 83,982,665,205

These financial statements should be read in conjunction with the annexed notes 1 to 53.

(A. N. M. MASRURUL HUDA SIRAJI) (SYED ABDUL HAMID)


Deputy Managing Director & CFO Managing Director & CEO

(GOKUL CHAND DAS) (PROF. DR. NITAI CHANDRA NAG) (DR. ZAID BAKHT)
Director Director Chairman

Hoda Vasi Chowdhury & Co. A. Qasem & Co.


Chartered Accountants Chartered Accountants

Dated, Dhaka
28-April-2016
w

169
Consolidated Profit and Loss Account
For the year ended 31 December 2015
(Amount in Taka)
2014
Notes 2015
(Restated)
Operating income
Interest and Revenue income 23(a) 23,668,443,318 23,351,879,959
Interest paid on deposits, borrowings etc. 24(a) 22,811,866,686 22,006,811,296
Net interest income 856,576,632 1,345,068,663
Investment income 25(a) 15,167,420,605 13,412,680,064
Commission, exchange earnings and brokerage 26(a) 3,384,627,769 4,474,738,019
Other operating income 27(a) 1,025,370,426 971,132,646
19,577,418,800 18,858,550,729
Total operating income 20,433,995,432 20,203,619,392

Operating expenses
Salary and allowance 28(a) 7,065,761,560 6,281,799,977
Rent, taxes, insurance, electricity etc. 29(a) 893,483,570 800,002,367
Legal expenses 30(a) 26,680,889 26,227,640
Postage, stamp, telecommunication etc. 31(a) 252,197,394 159,817,114
Stationery, printing, advertisement etc. 32(a) 284,262,992 252,964,455
Chief Executive’s salary and allowances 33(a) 7,500,000 6,660,000
Directors’ fees 34(a) 7,680,833 4,289,781
Auditors’ fees 35(a) 7,105,099 5,433,175
Depreciation and repair of bank’s assets 36(a) 984,430,826 726,984,488
Other expenses 37(a) 1,970,391,860 838,814,473
Total operating expenses 11,499,495,023 9,102,993,470
Profit/(Loss) before amortization, provision & tax 8,934,500,409 11,100,625,922
Amortization of valuation adjustment 9.8 1,329,500,000 1,329,500,000
Profit/(Loss) before provision & tax 7,605,000,409 9,771,125,922

Provision for loans and advances 38(a) 5,557,860,137 4,090,211,487


Other provision 39(a) 2,537,127,722 3,814,952,314
Total provision 8,094,987,859 7,905,163,801

Net profit/(loss) before Tax (489,987,450) 1,865,962,121


Provision for Tax
Current Tax 40 196,231,187 209,522,954
Deferred Tax 41 (1,382,233,094) (407,314,782)
(1,186,001,907) (197,791,828)
Net profit/(loss) after Tax 696,014,457 2,063,753,949
Add: Retained surplus (Opening Balance) (328,699,517) (2,526,134,204)
Add: Prior year adjustment for Agrani Bank Limited (173,375,810) 109,694,416
Add: Prior year adjustment for Agrani SME Financing Company Limited - (76,997)
Add: Transfer from provision 576,346,489 377,081,599
Add: Foreign currency translation gain/(loss) 19 (13,899,667) (6,582,216)
60,371,495 (2,046,017,402)
756,385,952 17,736,547
Appropriation:
Statutory reserve 7,313,176 353,015,371
Minority interest 18(a) 53 2,909
Foreign currency translation reserve (13,899,667) (6,582,216)
Cash Dividend to Govt. 5,000,000 -
(1,586,438) 346,436,064
Retained surplus/(deficit) 18(a) 757,972,390 (328,699,517)
Earnings Per Share (EPS) 13.3(a) 3.36 9.96

These financial statements should be read in conjunction with the annexed notes 1 to 53.

(A. N. M. MASRURUL HUDA SIRAJI) (SYED ABDUL HAMID)


Deputy Managing Director & CFO Managing Director & CEO

(GOKUL CHAND DAS) (PROF. DR. NITAI CHANDRA NAG) (DR. ZAID BAKHT)
Director Director Chairman

Hoda Vasi Chowdhury & Co. A. Qasem & Co.


Chartered Accountants Chartered Accountants
Dated, Dhaka
28-April-2016
w

170
Consolidated Statement of Changes in Equity
For the year ended 31 December 2015
(Amount in Taka)
Attributable to Shareholders of Agrani Bank Limited
Foreign Minority
Particulars Revaluation & Asset Total
Paid up Statutory General Retained Currency Interest
Amortization Revaluation Total
Capital Reserve Reserve Surplus Translation
Reserve Reserve
Reserve
Balance as at 01, January 2015 20,722,940,400 2,026,328,697 5,884,775,514 59,731,198 11,070,315,483 (328,699,517) 32,471,795 39,467,863,570 3,007 39,467,866,577
Transfer from exchange equalization fund - - - - - (173,375,810) - (173,375,810) - (173,375,810)
Adjustment - (2,026,328,697) - - - - - (2,026,328,697) - (2,026,328,697)
Adjusted Balance 20,722,940,400 - 5,884,775,514 59,731,198 11,070,315,483 (502,075,327) 32,471,795 37,268,159,063 3,007 37,268,162,070
Surplus/deficit on account of revaluation of properties - - - - - - - - - -
Surplus on account of revaluation of investments in Approved Securities: - - - - - - - - - -
Held to Maturity (HTM) - 515,723,604 - - - - - 515,723,604 - 515,723,604
Held for Trading (HFT) - 5,037,406,305 - - - - - 5,037,406,305 - 5,037,406,305
Net gains and losses not recognized in the income statement - - 30 66 - (53) (13,899,624) 53 (13,899,571)
(13,899,667)
Share capital - - - - - - - - - -
Transfer from provision - - - - - 576,346,489 - 576,346,489 576,346,489
Transfer from consumer financing - - - 531,512,399 - 531,512,399 531,512,399
Net profit for the year - - - - - 696,014,457 - 696,014,457 - 696,014,457
Statutory Reserve - - 7,313,176 - - (7,313,176) - - - -
Cash dividend paid to Covt. - - - - - (5,000,000) - (5,000,000) - (5,000,000)
Balance as at December 31, 2015 20,722,940,400 5,553,129,909 5,892,088,720 591,243,663 11,070,315,483 757,972,390 18,572,128 44,606,262,693 3,060 44,606,265,753
Balance as at December 31, 2014 20,722,940,400 2,026,328,697 5,884,775,514 59,731,198 11,070,315,483 (328,699,517) 32,471,795 39,467,863,569 3,007 39,467,866,576

These financial statements should be read in conjunction with the annexed notes 1 to 53.

(A. N. M. MASRURUL HUDA SIRAJI) (SYED ABDUL HAMID)


Deputy Managing Director & CFO Managing Director & CEO

(GOKUL CHAND DAS) (PROF. DR. NITAI CHANDRA NAG) (DR. ZAID BAKHT)
Director Director Chairman

Dated, Dhaka

171
ANNUAL REPORT 2015

28-April-2016
w
Consolidated Liquidity Statement

172
(Asset and Liability Maturity Analysis)
As at 31 December 2015
(Amount in Taka)
Up to 01 month 1 - 3 months 3 - 12 months 1 - 5 years More than 5 years Total
Assets:
Cash in hand 4,219,114,679 - - - 29,687,059,684 33,906,174,363
Balance with other banks and financial institutions 2,992,337,896 8,895,863,378 3,307,471,231 5,788,676,306 - 20,984,348,811
Money at call and short notice 1,592,226,706 - - - - 1,592,226,706
Investment 15,974,100 83,502,526,449 36,668,245,565 45,320,918,092 47,064,247,334 212,571,911,540
Loans and advances 24,987,291,457 27,997,001,938 69,613,743,256 42,986,691,685 77,648,692,391 243,233,420,727
Fixed assets including land, furniture and fixtures - - - - 15,993,396,495 15,993,396,495
Other assets 3,066,885,792 2,211,185,090 1,929,026,460 27,605,688,046 3,235,678,728 38,048,464,116
Non-banking assets - - - - 2,711,516 2,711,516
Total Assets 36,873,830,630 122,606,576,855 121,701,974,129 173,631,786,148 566,332,654,274
111,518,486,512

Liabilities:
Borrowing from Bangladesh Bank, other banks, financial institutions 7,753,374,047 - - 1,074,234,700 569,421 8,828,178,168
Deposits and other accounts 40,165,219,151 69,924,320,455 85,361,485,942 207,532,464,406 36,270,840,670 439,254,330,624
Provision and other liabilities 985,250,369 1,217,099,504 5,404,755,069 30,295,557,496 35,741,217,291 73,643,879,729
Total Liabilities 48,903,843,567 71,141,419,959 90,766,241,011 238,902,256,602 72,012,627,382 521,726,388,521
Net Liquidity Gap 51,465,156,896 20,752,245,501 (117,200,282,473) 101,619,158,766 44,606,265,753
(12,030,012,937)

(A. N. M. MASRURUL HUDA SIRAJI) (SYED ABDUL HAMID)


Deputy Managing Director & CFO Managing Director & CEO

(GOKUL CHAND DAS) (PROF. DR. NITAI CHANDRA NAG) (DR. ZAID BAKHT)
Director Director Chairman

Dated, Dhaka
28-April-2016
w
ANNUAL REPORT 2015

Consolidated Cash Flow Statement


For the year ended December 31, 2015
(Amount in Taka)
Notes 2015 2014

A. Cash flows from operating activities


Interest receipts in cash 42(a) 38,593,868,086 31,747,715,534
Interest payments 43(a) (22,013,315,427) (22,771,481,406)
Dividend receipts 1,325,381,025 2,523,752,013
Fees and commission receipts 1,712,594,559 2,050,644,843
Recovery of loans previously written off 224,276,097 155,607,055
Cash payment to employees (6,573,261,560) (6,288,467,392)
Cash payments to suppliers (195,492,287) (376,550,827)
Receipts from other operating activities 44(a) 1,038,711,443 952,490,132
Payments for other operating activities 45(a) (2,527,861,425) (2,384,089,078)
Operating profit/(loss) before changing in operating assets and liabilities 11,584,900,511 5,609,620,874

(Increase)/decrease in operating assets


Treasury Bills (47,506,535,234) (7,518,255,528)
Treasury & Other Bond (HFT) (1,012,874,025) 779,781,923
Fund advanced to customers (9,378,552,839) (34,230,568,950)
Other assets (2,542,644,681) (2,903,527,595)
(60,440,606,779) (43,872,570,150)
Increase/(decrease) in operating liabilities
Deposit from customers 56,076,295,768 35,369,484,547
Other liabilities 3,106,178,507 1,295,589,254
59,182,474,275 36,665,073,801
Net cash from operating activities (A) 10,326,768,007 (1,597,875,475)

B. Cash flows from investing activities


Treasury & Other Bond (HTM) (5,174,515,746) 4,994,353,232
Debenture 90,000,000 150,000,000
Purchase of securities (392,706,502) (1,019,942,644)
Purchase of properties, plant & equipment (964,208,089) (566,818,191)
Proceeds from sale of properties, plant & equipment 25,321,910 11,156,533
Net cash from investing activities (B) (6,416,108,427) 3,568,748,930

C. Cash flows from financing activities


Receipt/(Payment) of long term borrowings (5,091,511,299) 6,159,630,364
Receipt/(Payment) from other borrowings 5,020,384,314 (669,441,756)
Dividend paid to Govt. (5,000,000) -
Net cash from financing activities (C) (76,126,985) 5,490,188,608
Net increase in cash and cash equivalents (A+B+C) 3,834,532,597 7,461,062,063
Effect of exchange rate change on cash and cash equivalent 1,682,981,796 2,406,191,894
Cash and cash equivalents at the beginning of the year 50,947,587,576 41,080,333,619
Cash and cash equivalents at the end of the year 47 56,465,101,969 50,947,587,576

(A. N. M. MASRURUL HUDA SIRAJI) (SYED ABDUL HAMID)


Deputy Managing Director & CFO Managing Director & CEO

(GOKUL CHAND DAS) (PROF. DR. NITAI CHANDRA NAG) (DR. ZAID BAKHT)
Director Director Chairman
Dated, Dhaka
28-April-2016
w

173
Balance Sheet
As at 31 December 2015

(Amount in Taka)
Notes 2015 2014
PROPERTY & ASSETS
Cash: 03 33,737,533,977 30,196,202,546
Cash in hand (including foreign currencies) 4,055,674,293 4,239,014,134
Balance with Bangladesh Bank and its agent bank (including foreign currencies) 29,681,859,684 25,957,188,412

Balance with Other Banks and Financial Institutions: 04 20,923,298,810 15,375,867,598


In Bangladesh 17,985,710,914 13,041,158,402
Outside Bangladesh 2,937,587,896 2,334,709,196

Money at Call and Short Notice: 05 1,592,226,706 5,030,000,000

Investments: 06 205,697,485,859 152,279,754,911


Government 180,993,848,737 129,673,903,447
Others 24,703,637,122 22,605,851,464

Loans and advances: 244,801,833,138 235,085,714,197


Loans, cash credit & overdraft etc. 7.1 240,103,222,675 229,629,301,856
Bills discounted and purchased 7.1 4,698,610,463 5,456,412,341

Fixed assets
08 15,949,477,952 15,447,261,727
including land, building, furniture and fixtures:
Other Assets: 09 42,646,889,330 41,456,028,892
Non-banking Assets: 9.7 2,711,516 -
Total Assets 565,351,457,288 494,870,829,871

LIABILITIES & CAPITAL


Liabilities:
Borrowings from Other Banks, Financial Institutions and Agents: 10.1 8,828,178,168 8,899,305,153

Deposit and Other Accounts: 11.a 439,975,477,419 383,921,950,651


Current deposits & other accounts 41,933,562,664 38,314,408,111
Bills payable 4,842,152,720 5,053,940,551
Savings bank deposits 117,162,981,049 105,079,112,225
Fixed deposits 276,036,780,986 235,474,489,764
Other Liabilities: 12 71,871,946,420 62,482,960,876
Total Liabilities 520,675,602,007 455,304,216,680

Capital/Shareholders’ Equity:
Paid-up capital 13.2 20,722,940,400 20,722,940,400

Reserve: 17,466,209,863 16,934,697,464


Statutory reserve 14 5,859,381,981 5,859,381,981
General reserve 15 536,512,399 5,000,000
Asset revaluation reserve 16 11,070,315,483 11,070,315,483

Revaluation & amortization reserve 17 5,553,129,909 2,026,328,697


Retained surplus/(deficit) 18 933,575,109 (117,353,370)
Total Shareholders’ Equity 44,675,855,281 39,566,613,191
Total Liabilities and Shareholders’ Equity 565,351,457,288 494,870,829,871

174
ANNUAL REPORT 2015

Off Balance Sheet Items


As at 31 December 2015
(Amount in Taka)
Notes 2015 2014
Contingent Liabilities:

Acceptances and endorsements 90,068,815,036 83,982,665,205


Letters of guarantee 21.1 5,587,477,880 10,554,398,823
Letters of credit 43,971,567,281 38,751,002,780
Bills for collection 21.2 22,276,206,205 22,643,450,000
Other contingent liabilities 21.3 5,507,814,670 4,434,512,602
Claims against the Bank not acknowledged as debt 12,725,749,000 7,599,301,000

Other commitments: - -
Documentary credit and short term trade-related transactions - -
Liability on account of outstanding forward exchange contract - -
Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -

Total Off-Balance Sheet Items 90,068,815,036 83,982,665,205

These financial statements should be read in conjunction with the annexed notes 1 to 53.

(A. N. M. MASRURUL HUDA SIRAJI) (SYED ABDUL HAMID)


Deputy Managing Director & CFO Managing Director & CEO

(GOKUL CHAND DAS) (PROF. DR. NITAI CHANDRA NAG) (DR. ZAID BAKHT)
Director Director Chairman

Hoda Vasi Chowdhury & Co. A. Qasem & Co.


Chartered Accountants Chartered Accountants

Dated, Dhaka
28-April-2016
w

175
Profit and Loss Account
For the year ended 31 December 2015
(Amount in Taka)
Notes
2015 2014

Operating income
Interest and revenue income 23 23,635,351,099 23,394,829,516
Interest paid on deposits, borrowings etc. 24 22,942,803,142 22,208,967,988
Net interest income 692,547,957 1,185,861,528
Investment income 25 14,952,372,541 13,011,071,419
Commission, exchange earnings and brokerage 26 3,255,413,507 4,338,569,554
Other operating income 27 1,015,271,792 964,082,497
19,223,057,840 18,313,723,470
Total Operating Income 19,915,605,797 19,499,584,998
Operating expenses
Salary and allowance 28 6,952,667,148 6,164,550,821
Rent, taxes, insurance, electricity etc. 29 852,121,308 760,934,961
Legal expenses 30 24,588,226 21,253,674
Postage, stamp, telecommunication etc. 31 249,328,769 157,940,761
Stationery, printing, advertisement etc. 32 280,203,490 249,651,204
Chief Executive’s salary and allowances 33 5,700,000 5,700,000
Directors’ fees 34 3,513,105 3,021,250
Auditors’ fees 35 3,636,000 3,633,750
Depreciation, Amortization and Repair of bank’s assets 36 969,891,827 715,621,085
Other expenses 37 1,799,215,750 677,762,323
Total operating expenses 11,140,865,623 8,760,069,829
Profit/(Loss) before amortization, provision & tax 8,774,740,174 10,739,515,169
Amortization of valuation adjustment 9.5 1,329,500,000 1,329,500,000
Profit/(Loss) before provision & tax 7,445,240,174 9,410,015,169

Provision for loans and advances 38 5,557,860,137 4,090,211,487


Other provision 39 2,486,269,846 3,614,952,314
Total provision 8,044,129,983 7,705,163,801

Net profit/(loss) before Tax (598,889,809) 1,704,851,368


Provision for Tax
Current Tax 12.4 131,000,000 126,000,000
Deferred Tax 9,6 (1,382,950,456) (407,293,396)
(1,251,950,456) (281,293,396)
Net profit/(loss) after Tax 653,060,647 1,986,144,764
Add: Retained surplus (Opening Balance) (117,353,370) (2,249,303,875)
Add: Transfer from provision 576,346,489 377,081,599
Add: Prior year adjustment (173,478,657) 109,694,416
285,514,462 (1,762,527,860)
938,575,109 223,616,904
Appropriation:
Statutory reserve 14 - 340,970,274
Cash Dividend paid to Govt. 5,000,000 -
5,000,000 340,970,274
Retained surplus/(deficit) 18 933,575,109 (117,353,370)
Earnings Per Share (EPS) 13.3.2 3.15 9.58
These financial statements should be read in conjunction with the annexed notes 1 to 53.

(A. N. M. MASRURUL HUDA SIRAJI) (SYED ABDUL HAMID)


Deputy Managing Director & CFO Managing Director & CEO

(GOKUL CHAND DAS) (PROF. DR. NITAI CHANDRA NAG) (DR. ZAID BAKHT)
Director Director Chairman

Hoda Vasi Chowdhury & Co. A. Qasem & Co.


Chartered Accountants Chartered Accountants
Dated, Dhaka
28-April-2016
w

176
Statement of Changes in Equity
For the year ended 31 December 2015
(Amount in Taka)

Revaluation & Asset


Paid up Statutory General Retained
Amortization Revaluation Total
Capital Reserve Reserve Surplus
Reserve Reserve

Balance as at 01, January 2015 20,722,940,400 2,026,328,697 5,859,381,981 5,000,000 11,070,315,483 (117,353,370) 39,566,613,191
Prior year adjustment (Exchange Equalization Fund & Exchange Adjustment) - - - - (173,478,657) (173,478,657)
Adjustment - (2,026,328,697) - - - (2,026,328,697)
Adjusted Balance 20,722,940,400 - 5,859,381,981 5,000,000 11,070,315,483 (290,832,027) 37,366,805,837
Surplus/deficit on account of revaluation of properties - - - - - - -
Surplus on account of revaluation of investments in Approved Securities:
Held to Maturity (HTM) Annexure-B1 & B2 - 515,723,604 - - - - 515,723,604
Held for Trading (HFT) Annexure-B2 & B2 - 5,037,406,305 - - - - 5,037,406,305
Issue of Share Capital ( Right Share ) - - - - - -
Transfer from provision - - - - - 576,346,489 576,346,489
Transfer from consumer financing 531,512,399 531,512,399
Net profit for the year - - - - - 653,060,647 653,060,647
Statutory Reserve - - - - - - -
Cash dividend paid to Covt. (5,000,000) (5,000,000)
Balance as at December 31, 2015 20,722,940,400 5,553,129,909 5,859,381,981 536,512,399 11,070,315,483 933,575,109 44,675,855,281
Balance as at December 31, 2014 20,722,940,400 2,026,328,697 5,859,381,981 5,000,000 11,070,315,483 (117,353,370) 39,566,613,191

These financial statements should be read in conjunction with the annexed notes 1 to 53.

(A. N. M. MASRURUL HUDA SIRAJI) (SYED ABDUL HAMID)


Deputy Managing Director & CFO Managing Director & CEO

(GOKUL CHAND DAS) (PROF. DR. NITAI CHANDRA NAG) (DR. ZAID BAKHT)
Director Director Chairman

Dated, Dhaka

177
ANNUAL REPORT 2015

28-April-2016
w
Cash Flow Statement
For the year ended December 31, 2015
(Amount in Taka)
Notes
2015 2014

A. Cash flows from operating activities


Interest receipts in cash 42 38,560,775,867 31,790,665,091
Interest payments 43 (22,144,251,883) (22,973,638,098)
Dividend receipts 1,325,381,025 2,523,752,013
Fees and commission receipts 1,583,380,297 1,914,467,628
Recovery of loans previously written off 224,276,097 155,607,055
Cash payment to employees (6,458,367,148) (6,170,250,821)
Cash payments to suppliers (191,432,785) (373,152,847)
Receipts from other operating activities 44 1,029,098,108 944,812,437
Payments for other operating activities 45 (2,320,420,070) (1,941,437,834)
Operating profit/(loss) before changing in operating assets and liabilities 11,608,439,508 5,870,824,624

(Increase)/decrease in operating assets


Treasury Bills (47,506,535,234) (7,518,255,528)
Treasury & Other Bond (HFT) (1,012,874,025) 779,781,923
Fund advanced to customers (9,716,118,941) (32,120,326,059)
Other assets (2,578,712,013) (5,161,722,116)
(60,814,240,213) (44,020,521,780)
Increase/(decrease) in operating liabilities
Deposit from customers 56,053,526,768 35,246,783,057
Other liabilities 3,045,373,917 947,200,950
59,098,900,685 36,193,984,007
Net cash from operating activities (A) 9,893,099,980 (1,955,713,149)

B. Cash flows from investing activities


Treasury & Other Bond (HTM) (5,174,515,746) 4,994,353,232
Debenture 90,000,000 150,000,000
Sale/(Purchase) of securities 201,614,342 (759,050,426)
Purchase of properties, plant & equipment (964,208,089) (566,818,191)
Proceeds from sale of properties, plant & equipment - 11,156,533
Net cash from investing activities (B) (5,847,109,493) 3,829,641,148

C. Cash flows from financing activities


Receipt/(Payment) of long term borrowings (5,091,511,299) 6,159,630,363
Receipt/(Payment) from other borrowings 5,020,384,314 (669,441,756)
Dividend paid to Govt. (5,000,000) -
Net cash from financing activities (C) (76,126,985) 5,490,188,607
Net increase in cash and cash equivalents (A+B+C) 3,969,863,503 7,364,116,606
Effect of exchange rate change on cash and cash equivalent 1,682,981,796 2,406,191,894
Cash and cash equivalents at the beginning of the year 50,616,188,294 40,845,879,794
Cash and cash equivalents at the end of the year 46 56,269,033,593 50,616,188,294

(A. N. M. MASRURUL HUDA SIRAJI) (SYED ABDUL HAMID)


Deputy Managing Director & CFO Managing Director & CEO

(GOKUL CHAND DAS) (PROF. DR. NITAI CHANDRA NAG) (DR. ZAID BAKHT)
Director Director Chairman
Dated, Dhaka
28-April-2016
w

178
Liquidity Statement
(Asset and Liability Maturity Analysis)
As at 31 December 2015
(Amount in Taka)
Up to 01 month 1 - 3 months 3 - 12 months 1 - 5 years More than 5 years Total
Assets:
Cash in hand 4,055,674,293 - - - 29,681,859,684 33,737,533,977
Balance with other banks and financial institutions 2,937,587,896 8,500,000,000 5,315,710,914 4,170,000,000 - 20,923,298,810
Money at call and short notice 1,592,226,706 - - - - 1,592,226,706
Investment 15,974,100 83,502,526,449 33,668,245,565 41,446,492,411 47,064,247,334 205,697,485,859
Loans and advances 29,731,325,567 31,271,445,857 78,120,062,197 39,895,925,466 65,783,074,051 244,801,833,138
Fixed assets including land, furniture and fixtures - - - - 15,949,477,952 15,949,477,952
Other assets 3,010,252,592 2,164,699,931 22,065,209,909 12,250,150,444 3,156,576,454 42,646,889,330
Non-banking assets - - - - 2,711,516.00 2,711,516
Total Assets 41,343,041,154 125,438,672,237 97,762,568,321 161,637,946,991 565,351,457,288
139,169,228,585

Liabilities:
Borrowing from Bangladesh Bank,Other banks, financial institutions
7,753,374,047 - - 1,074,234,700 569,421 8,828,178,168
and agents
Deposits and other accounts 48,450,736,649 103,938,524,039 92,279,811,496 165,600,399,445 29,706,005,790 439,975,477,419
Provision and other liabilities 566,199,985 817,099,945 6,616,742,268 34,165,898,432 29,706,005,790 71,871,946,420
Total Liabilities 56,770,310,681 104,755,623,984 98,896,553,764 200,840,532,577 59,412,581,001 520,675,602,007
Net Liquidity Gap (15,427,269,527) 20,683,048,253 40,272,674,821 (103,077,964,256) 102,225,365,990 44,675,855,281

(A. N. M. MASRURUL HUDA SIRAJI) (SYED ABDUL HAMID)


Deputy Managing Director & CFO Managing Director & CEO

(GOKUL CHAND DAS) (PROF. DR. NITAI CHANDRA NAG) (DR. ZAID BAKHT)
Director Director Chairman

Dated, Dhaka

179
ANNUAL REPORT 2015

28-April-2016
w
Notes to the Financial Statements
As at and for the year ended December 31, 2015
1. BACKGROUND INFORMATION
1.1 Establishment and status of the Bank
Agrani Bank Limited (the Bank) has been incorporated as a Public Limited Company on May 17, 2007 Vide Certificate of Incorporation
No. C-66888(4380)/07. The Bank has taken over the business of Agrani Bank (emerged as a Nationalized Commercial Bank in 1972,
pursuant to Bangladesh Bank (Nationalization) Order No. 1972 (P.O. # 26 of 1972)) on a going concern basis through a Vendor
Agreement signed between the Ministry of Finance of the People’s Republic of Bangladesh on behalf of Agrani Bank and the Board
of Directors on behalf of Agrani Bank Limited on November 15, 2007 with a retrospective effect from July 01, 2007. The Bank’s
current shareholdings comprise Government of the People’s Republic of Bangladesh and 12 (Twelve) other shareholders nominated
by the Government. The Bank has 930 branches and 05 (five) windows are working under Islamic Banking Unit complying with the
rules of Islamic Shariah.
1.1.1 Nature of business
The Bank through its Branches and non-banking subsidiaries provides a diverse range of financial services and products in
Bangladesh and in certain international markets.
1.1.2 Islamic Banking Unit
The Bank obtained the Islamic Banking Unit permission vide letter no. BRPD(P-3)745(3)/2009-2567 dated July 22, 2009. The Bank
commenced operation of its 05 (Five) Islamic windows at February 28, 2010. 05 (Five) Islamic Banking Windows are located at
Motijheel, Gulshan, Agrabad, Laldighipar and Maizdee Court. The Islamic Banking Windows are governed under the rules and
guidelines of Bangladesh Bank. The principal activities of the windows are to provide all kinds of Islamic Commercial Banking
services to its customers.
1.2 The Bank has 6 (Six) Subsidiaries, details of which are given at note no. 1.2.1-1.2.6.
1.2.1 Agrani Exchange House Private Limited, Singapore
Agrani Exchange House Private Limited is a limited liability company incorporated and domiciled in the Republic of Singapore with
the Registration No. 200200048D whose registered office and principal place of business is located at 5A Lembu Road Singapore
208444. The Company is a wholly-owned subsidiary of Agrani Bank Limited, a fully state owned bank of Bangladesh, which is also
the Company’s ultimate holding company. The principal activities of the Company are to carry on the remittance business and to
undertake and participate in any or all transactions, activities and operations commonly carried on or undertaken by remittance and
exchange house.
1.2.2 Agrani Remittance House SDN. BHD., Malaysia
The company is a private limited liability Company, incorporated and domiciled in Malaysia with the Registration No. 706823-M
whose registered office is located at Suite 13.01, 13th Floor, Tower Block Plaza Pekeliling, Jalan Tun Razak, 50400 Kuala Lumpur,
Malaysia. The Company is a wholly-owned subsidiary of Agrani Bank Limited, a fully state owned bank of Bangladesh, which is
also the Company’s ultimate holding company. The principal activity of the company during the financial year is that of providing
remittance services to legal Bangladeshi expatriates working in Malaysia.
1.2.3 Agrani Equity and Investment Limited
The company is a public limited registered under the Companies Act 1994. The company was incorporated in Bangladesh on 16
March 2010 with Certificate of Incorporation No. C-8357/10 whose registered office is located at 9/D, Dilkusha, Motijheel, Dhaka-1000,
Bangladesh. The Company is a wholly-owned subsidiary of Agrani Bank Limited, a fully state owned bank of Bangladesh, which is
also the Company’s ultimate holding company. The principal activities of the company comprised of merchant banking, portfolio
management, issue management and underwriting.
1.2.4 Agrani SME Financing Company Limited
The Company has been incorporated as a public limited Company on 27 October, 2010 vide certificate of incorporation No. C-
87827/10. The company has taken over the ongoing work of Small Enterprise Development Project (A Norway and Agrani bank
funded Project of Ministry of Finance, Bangladesh) on a going concern basis through a Vendor’s Agreement signed between the
Ministry of Finance of the People’s Republic of Bangladesh, the Board of Directors on behalf of the Agrani Bank Limited and the
Board of Directors on behalf of the Agrani SME Financing Company Limited on 27 December, 2011. The principal activities of the
company are providing support to Small and Medium Enterprises all over the country through training program on limited basis
and providing loan to the customers.
1.2.5 Agrani Exchange Company (Australia) Pty. Limited
The company is a private limited liability Company, incorporated and domiciled in Australia with the Corporation No. 154851546
whose registered office is located at 301 Castlereagh Street, Sydney NSW 2000. The Company is a wholly-owned subsidiary of Agrani

180
ANNUAL REPORT 2015

Bank Limited, a fully state owned bank of Bangladesh, which is also the Company’s ultimate holding company. The principal activity
of the company is that of providing remittance services to legal Bangladeshi expatriates working in Australia.
1.2.6 Agrani Remittance House Canada, Inc.
Agrani Remittance House Canada, Inc. is a limited liability company incorporated and domiciled in Canada with the Corporation
No. 819190-5 whose registered office is located at 2960 Danforth avenue, Toronto on M4C 1M6. The Company is a wholly-owned
subsidiary of Agrani Bank Limited, a fully state owned bank of Bangladesh, which is also the Company’s ultimate holding company.
The principal activities of the Company are to carry on the remittance business and to undertake and participate in any or all
transactions, activities and operations commonly carried on or undertaken by remittance and exchange house.
2. Basis of Preparation and Significant Accounting Policies
2.1 Statement of compliance
The financial statements of the Bank have been prepared in accordance with the “First Schedule (Section 38) of the Banking
Companies Act 1991 as amended by BRPD circular no. 14 dated 25 June 2003, BRPD circular no. 15 dated 09 November 2009, other
Bangladesh Bank Circulars, Bangladesh Financial Reporting Standards (BFRSs), Bangladesh Accounting Standards (BASs), Financial
Accounting Standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions, Bahrain etc. The Bank
complied with the requirement of the following regulatory and legal authorities:
i) Banking Companies Act 1991
ii) Companies Act 1994
iii) Rules, regulations and circulars issued by the Bangladesh Bank from time to time
iv) Bangladesh Securities and Exchange Rules 1987
v) Bangladesh Securities and Exchange Ordinance 1969
vi) Bangladesh Securities and Exchange Commission Act 1993
vii) Bangladesh Securities and Exchange Commission (Public Issues) Rules 2006
viii) Income Tax Ordinance and Rules 1984
ix) Value Added Tax Act 1991
However, the Group and the Bank has departed from some contradictory requirements of BFRSs in order to comply with the rules
and regulations of Bangladesh Bank which are disclosed below:
(a) Investments in shares and securities
BFRS:
As per requirements of ‘BAS 39- Financial Instruments: Recognition & Measurement’ investment in shares and securities
generally falls either under “at fair value through profit and loss account” or under “available for sale” where any change in
the fair value (as measured in accordance with BFRS 13- Fair Value Measurement) at the year-end is taken to profit and loss
account or revaluation reserve respectively.
Bangladesh Bank:
As per BRPD circular no. 14 dated 25 June 2003 investments in quoted shares and unquoted shares are revalued at the year
end at market price and as per book value of last audited balance sheet respectively. Provision should be made for any loss
arising from diminution in value of investment; otherwise investments are recognised at cost.
(b) Revaluation gain/loss on Government securities
BFRS:

As per requirement of ‘BAS 39- Financial Instruments: Recognition & Measurement’ where securities will fall under the
category of Held for Trading (HFT), any change in the fair value of held for trading assets is recognised through profit and
loss account. Securities designated as Held to Maturity (HTM) are measured at amortised cost method and interest income
is recognised through the profit and loss account.

Bangladesh Bank:

HFT securities are revalued on the basis of mark to market and at year end any gains on revaluation of securities which have
not matured as at the balance sheet date are recognised in other reserves as a part of equity and any losses on revaluation
of securities which have not matured as at the balance sheet date are charged in the profit and loss account. Interest on
HFT securities including amortisation of discount are recognised in the profit and loss account. HTM securities which have
not matured as at the balance sheet date are amortised at the year end and gains or losses on amortisation are recognised
in other reserve as a part of equity.

181
(c) Provision on loans and advances

BFRS:

As per ‘BAS 39- Financial Instruments: Recognition & Measurement’ an entity should start the impairment assessment
by considering whether objective evidence of impairment exists for financial assets that are individually significant.
For financial assets that are not individually significant, the assessment can be performed on an individual or collective
(portfolio) basis.

Bangladesh Bank:

As per BRPD circular No.14 (23 September 2012), BRPD circular No. 19 (27 December 2012) and BRPD circular No. 05 (29
May 2013) a general provision at 0.25% to 5% under different categories of unclassified loans (STD/SMA loans) have to
be maintained regardless of objective evidence of impairment. Also provision for sub-standard loans, doubtful loans and
bad losses has to be provided at 20%, 50% and 100% respectively for loans and advances depending on the duration of
overdue. Again as per BRPD circular no. 14 dated 23 September 2012, a general provision at 1% is required to be provided
for all off-balance sheet exposures. Such provision policies are not specifically in line with those prescribed by BAS 39.

(d) Recognition of interest in suspense

BFRS:

Loans and advances to customers are generally classified as ‘loans and receivables’ as per ‘BAS 39- Financial Instruments:
Recognition & Measurement’ and interest income is recognised through effective interest rate method over the term of the
loan. Once a loan is impaired, interest income is recognised in profit and loss account on the same basis based on revised
carrying amount.

Bangladesh Bank:

As per BRPD circular no. 14 dated 23 September 2012, once a loan is classified, interest on such loans are not allowed to be
recognised as income, rather the corresponding amount needs to be credited to an interest in suspense account, which is
presented as liability in the balance sheet.

(e) Other comprehensive income

BFRS:

As per ‘BAS 1- Presentation of Financial Statements’ Other Comprehensive Income (OCI) is a component of financial
statements or the elements of OCI are to be included in a single Other Comprehensive Income statement.

Bangladesh Bank:

Bangladesh Bank has issued templates for financial statements which will strictly be followed by all banks. The templates
of financial statements issued by Bangladesh Bank do not include Other Comprehensive Income nor are the elements of
Other Comprehensive Income allowed to be included in a single Other Comprehensive Income (OCI) Statement. As such
the Bank does not prepare the other comprehensive income statement. However, elements of OCI, if any, are shown in the
statements of changes in equity.

(f) Financial instruments - presentation and disclosure

In several cases Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments differently
from those prescribed in ‘BAS 39- Financial Instruments: Recognition & Measurement’. As such full disclosure and
presentation requirements of ‘BFRS 7- Financial Instruments: Disclosures’ and ‘BAS 32-Financial Instruments: Presentation’
cannot be made in the financial statements.

(g) Financial guarantees

BFRS:

As per ‘BAS 39- Financial Instruments: Recognition & Measurement’ financial guarantees are contracts that require an entity
to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment
when due in accordance with the terms of a debt instrument. Financial guarantee liabilities are recognised initially at their
fair value, and the initial fair value is amortised over the life of the financial guarantee. The financial guarantee liability
is subsequently carried at the higher of this amortised amount and the present value of any expected payment when a
payment under the guarantee has become probable. Financial guarantees are included within other liabilities.

Bangladesh Bank:

As per BRPD circular no. 14 dated 25 June 2003, financial guarantees such as letter of credit, letter of guarantee will be
treated as off-balance sheet items. No liability is recognised for the guarantee except the cash margin.

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(h) Cash and cash equivalents


BFRS:
Cash and cash equivalent items should be reported as cash item as per ‘BAS 7- Statement of Cash Flows’.
Bangladesh Bank:
Some cash and cash equivalent items such as ‘money at call and on short notice’, treasury bills, Bangladesh Bank bills and
prize bond are not shown as cash and cash equivalents. Money at call and on short notice presented on the face of the
balance sheet, and treasury bills, prize bonds are shown in investments.
(i) Non banking assets
BFRS:
No indication of Non-banking asset is found in any BFRS.
Bangladesh Bank:
As per BRPD circular no. 14 dated 25 June 2003, there must exist a face item named Non-banking asset.
(j) Cash flow statement
BFRS:
AS per ‘BAS 7- Statement of Cash Flows’ The Cash flow statement can be prepared using either the direct method or the
indirect method. The presentation is selected to present these cash flows in a manner that is most appropriate for the
business or industry. The method selected is applied consistently.
Bangladesh Bank:
As per BRPD circular no. 14 dated 25 June 2003, cash flow is the mixture of direct and indirect methods.
(k) Balance with Bangladesh Bank (CRR)
BFRS:
Balance with Bangladesh Bank should be treated as other asset as it is not available for use in day to day operations as per
‘BAS 7- Statement of Cash Flows’.
Bangladesh Bank:
Balance with Bangladesh Bank is treated as cash and cash equivalents.
(l) Presentation of intangible asset
BFRS:
An intangible asset must be identified and recognised, and the disclosure must be given as per ‘BAS 38-Intangible Assets’.
Bangladesh Bank:
There is no regulation for intangible assets in BRPD circular no.14 dated 25 June 2003.
(m) Off balance sheet items
BFRS:
There is no concept of off-balance sheet items in any BFRS; hence there is no requirement for disclosure of off-balance sheet
items on the face of the balance sheet.
Bangladesh Bank:
As per BRPD circular no.14 dated 25 June 2003, off balance sheet items (e.g. Letter of credit, Letter of guarantee etc.) must
be disclosed separately on the face of the balance sheet.

(n) Loans and advance net of provision


BFRS:
Loans and advances should be presented net of provisions.
Bangladesh Bank:
As per BRPD circular no.14 dated 25 June 2003, provision on loans and advances are presented separately as liability and
cannot be netted off against loans and advances.

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[Also refer to Note-2.36 Compliance of Bangladesh Accounting Standards (BASs) and Bangladesh Financial Reporting
Standards (BFRSs)]
2.2 Basis for Measurement
The financial statements of the Bank have been prepared on the historical cost basis except for the following material items:
Government Treasury Bills and Bonds designated as ‘Held for Trading (HFT)’ at present value using marking to market concept with
gain crediting to revaluation reserve.
Government Treasury Bills and Bonds designated as ‘Held to Maturity (HTM)’ at present value using amortization concept.
2.3 Use of estimates and judgments
The preparation of consolidated financial statements and financial statements of the Bank required management to make
judgments, estimates and assumptions that affected the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions have been reviewed considering business realities. Revisions of accounting estimates have
been recognized in the period in which the estimates have been revised and in the future periods affected, if applicable.
The preparation of financial statements in conformity with adopted BFRS requires the use of certain critical accounting estimates.
It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The accounting
policies set out below have been applied consistently across the Group and to all periods presented in these financial statements.
2.4 Foreign currency transactions
2.4.1 Functional and presentational currency
Financial statements of the Bank have been presented in Taka, which is the Bank’s functional and presentational currency.
2.4.2 Foreign currency translation
Foreign currency transactions have been converted into equivalent Taka currency at the ruling exchange rates on the respective
date of such transactions as per BAS 21 “The Effects of Changes in Foreign Exchange Rates”. Foreign Currency conversion rates for
the year 2015 are as follows:

Sl. No. Particular SGD MYR AUD CAD


1 Assets & Liabilities 55.4500 18.2500 57.0000 56.3000
2 Income & Expenses 56.9154 20.1712 59.9789 61.3398

Here, SGD, MYR, AUD and CAD indicate Singaporean Dollar, Malaysian Ringgit, Australian Dollar and Canadian Dollar respectively.
2.4.3 Commitment
Commitments for outstanding forward foreign exchange contracts disclosed in the consolidated financial statements and financial
statements of Bank have been translated at contracted rates. Contingent liabilities/commitments for letter of credit, letter of
guarantee and acceptance denominated in foreign currencies have been expressed in Taka terms at the rates of exchange ruling on
the balance sheet date.
2.4.4 Translation gain and losses
Gains or losses arising out of translation of foreign exchange have been included in the Profit and Loss Statement and in Balance
Sheet.
2.4.5 Foreign operations
The assets & liabilities of foreign operations are translated to Bangladeshi Taka at exchange rate prevailing at the balance sheet date.
The income & expenses of foreign operations are translated at average rate of exchange for the year. Foreign currency differences
are recognised and presented in the foreign currency translation reserve in equity.
2.5 Basis for Consolidation
The consolidated financial statements include the financial statements of Agrani Bank Limited and its six subsidiaries named Agrani
Equity and Investment Limited, Agrani SME Financing Company Limited, Agrani Exchange House Private Limited, Singapore, Agrani
Remittance House, BHD, Malaysia, Agrani Exchange Co.(Australia) Pty. Limited , Agrani Remittance House Canada, Inc. made up to
the end of the financial year. The Consolidated financial statements have been prepared in accordance with Bangladesh
Accounting Standards BAS-27 ‘Consolidated and Separate Financial Statements’ and BFRS-13 ‘Fair Value Measurement’. These
Consolidated financial statements are prepared to a common financial year ended 31 December 2015.

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2.5.1 Subsidiaries

Subsidiaries are entities controlled by the group. The financial statements of subsidiaries are included in the Consolidated Financial
Statements from the date that control commences until the date the control ceases.

Name of Subsidiary Ownership Status of Ownership Country of Operation


Agrani Exchange House Pte. Limited 100.00% Wholly Singapore
Agrani Remittance House SDN. BHD. 100.00% Wholly Malaysia
Agrani Equity and Investment Limited 99.99% Majority Bangladesh
Agrani SME Financing Com. Limited 99.99% Majority Bangladesh
Agrani Exchange Co.(Australia) Pty. Limited 100.00% Wholly Australia
Agrani Remittance House Canada, Inc. 100.00% Wholly Canada

2.5.2 Transactions eliminated on consolidation

Intra-group balances and transactions and any unrealized income and expenses arising from intra-group transactions are eliminated
in preparing the Consolidated Financial Statements. Unrealized gains or unrealized losses arising from transactions with equity
accounted investees are eliminated against the investment to the extent of the group’s interest in the investee.

2.6 Materiality, aggregation and offsetting

The Bank aggregates each material class of similar items and separately which are dissimilar in nature or function unless those are
immaterial. The Bank did not offset assets and liabilities or income and expense, unless required or permitted by BAS/ BFRS.

2.7 Comparative Information

Presentation of Financial Statements, comparative information in respect of the previous year have been presented in all numerical
information in the financial statements and the narrative and descriptive information where, it is relevant for understanding of the
current year’s financial statements.

2.8 Reporting period

The accounting period of the bank has been determined to be from 01 January to 31 December each year and is followed
consistently.

2.9 Cash flow statement

Cash Flow Statement is prepared principally in accordance as per the guidelines of BRPD circular no.14 dated 25 June 2003. The Cash
Flow Statement shows the structure of and changes in cash and cash equivalents during the year. Cash Flows during the period have
been classified as operating activities, investing activities and financing activities.

2.10 Statement of changes in equity

Statement of Changes in Equity has been prepared in accordance with BAS 1 “Presentation of Financial Statements” and following
the guidelines of Bangladesh Bank BRPD circular no.14 dated 25th June 2003.

2.11 Liquidity statement

The basis of the liquidity statement of assets and liabilities as on the reporting date is given below:

Particulars Basis
Balance with other banks and financial institutions Maturity term
Investments Respective maturity terms
Loans and advances Repayment schedule basis
Fixed assets Useful life
Other assets Realization/ amortization basis
Borrowing from other banks, financial institutions & agents Maturity/ repayments terms
Deposits and others accounts Maturity term/ Previous trend
Other liabilities Payments/ adjustments schedule basis

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2.12 Cash and cash equivalents
Cash and cash equivalents include notes and coins on hand, mutilated notes, unrestricted balances held with Bangladesh Bank
and highly liquid financial assets which are subject to insignificant risk of changes in their fair value, and are used by the Bank
management for its short-term commitments.
2.13 Investments
All investments (other than government treasury bills and bonds) are initially recognised at cost, including acquisition charges
associated with the investment. Premiums are amortised and discount accredited, using the effective or historical yield method.
Accounting treatment of government treasury securities and bonds (categorised as HFT or/and HTM) is made following Bangladesh
Bank DOS circular letter no. 5, dated 26 May 2008 (amended on 28 January 2009) and DOS circular letter no. 2, dated 19 January
2012.
2.13.1 Held to Maturity (HTM)
Investments (financial instruments) which have fixed or determinable maturity date and the bank has no intention to sell before
their maturity date irrespective of changes in market prices or the bank’s financial position or performance are grouped as held to
maturity. Government Treasury Bills, Government Treasury Bonds and other securities approved for statutory liquidity reserves have
been classified as held to maturity financial asset.
2.13.2 Held for Trading (HFT)
Investment (financial instruments) are grouped as held for trading if they have been originated, acquired or incurred principally
for the purpose of selling or repurchasing them in the next term. Treasury bond and quoted shares have been grouped as held for
trading instruments. Instruments under this head have been valued at market price except quoted shares. Government Treasury
Bills, Bonds have been valued using marking to market concept on the basis as mentioned in note 2.13.3. Gain/(Loss) on revaluation
of held for trading instrument is recognized in the profit and loss account. Quoted shares have been presented at cost instead of
market price as described in note 2.13.5.
2.13.3 Revaluation
As per the DOS (BB) Circular letter no.-05, dated 26 May 2008 & subsequent amended circular no.-05, dated 28 January 2009, HFT
(Held for Trading) securities are revalued on weekly basis and HTM (Held to Maturity) securities are amortized on yearly basis. The
HTM securities are also revalued if they are reclassified to HFT category with the Board’s approval. Any gain or loss on revaluation of
HTM securities is recognized in the statement of changes in equity. Gain/(Loss) on revaluation of HFT securities is recognized in the
profit and loss account on weekly basis and gain on revaluation is transferred to statement of changes in equity on monthly basis.
2.13.4 Available for sale
Investments (financial instruments) in shares that have a quoted price but are not held for trading and investments in shares that are
not quoted in an active market and are not held for trading are grouped as Available for sale. Financial instruments grouped under
this head are presented in note 50. All shares quoted and unquoted have been presented in financial statements at cost instead of
market price as described in note 2.13.5.
2.13.5 Quoted and unquoted shares
Investments in equity instruments/shares that are not quoted in active market are not measured at fair value due to absence of
information required to measure in fair value reliably; so these are presented at cost. The equity instruments that are quoted in
active market are also not presented at fair value. Abnormal ups and downs have been going on in the market of quoted shares and
if the shares are measured at fair value the results of financial performance will be seriously misleading for the objective of financial
statements. Considering the circumstances, the principle of presenting the quoted shares in market value has been departed and
that departure is replied with regulatory requirements i.e. Bangladesh Bank guideline. Provision has been made for diminution in
value of shares. Details of quoted and unquoted shares are shown in annexure-C(1) and annexure-C(2) respectively.
2.13.6 Investment and related income
(a) Income on investments other than shares is accounted for on accrual basis concept; and
(b) Dividend income on investment in shares is accounted for in the year when right has been established.
2.14 Loans and advances
2.14.1 Presentation of loans and advances
i) Loans and advances are initially recognized at fair value, representing the cash advanced to the borrower plus the net of
direct and incremental transaction costs and fees. They are subsequently measured at amortized cost and shown at gross
amount instead of directly reducing the carrying amount of assets while interest suspense and loan loss provision against
classified loans are shown under other liabilities in the Balance Sheet as per BRPD Circular no. 14, dated June 25, 2003.
ii) Loans to staffs are allowed at concessional rate as approved by the authority are shown under advances as per BRPD
Circular no. 14, dated 25 June 2003.

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2.14.2 Interest on loans and advances


i) Interest is calculated on unclassified loans and advances and recognized as income during the year;
ii) Interest calculated on classified loans and advances as per Bangladesh Bank Circulars is kept in interest suspense account
and credited to income on realization;
iii) Interest is calculated on daily product basis but debited to the party’s loan account quarterly. No interest is charged on
loans and advances which are classified as bad and loss;
iv) Total balance of loans and advances as on December 31, 2015 includes bad/loss loan Tk. 40,895 million on which the Bank
did not accrue any interest because of deterioration of quality of loans and advances determined by the management
and on the basis of instructions contained in Bangladesh Bank Circulars as mentioned in Note-2.14.3 of this financial
statements; and
v) Interest suspense and penal interest, if any, calculated on classified loans and advances are taken into income in the year
of its receipt from the defaulting borrowers.
2.14.3 Provision for loans and advances
Provision for loans and advances has been made on the basis of instructions contained in Bangladesh Bank BRPD Circular no.19
dated December 27, 2012; BRPD Circular no.14, 15 dated September 23, 2012; BRPD Circular no. 05 dated May 29, 2013; BRPD
Circular no. 16 dated November 18, 2014.
Rate of Provision

Short term Consumer Financing Loans to All


Particulars Other Than SMEF BHs/ MBs/ Other
agri credit HF LP SDs Credit
HF & LP
Standard 2.5% 5% 2% 2% 0.25% 2% 1%
Unclassified
SMA - 5% 2% 2% 0.25% 2% 1%

SS 5% 20% 20% 20% 20% 20% 20%

Classified DF 5% 50% 50% 50% 50% 50% 50%

BL 100% 100% 100% 100% 100% 100% 100%

2.14.4 Interest and discount income


Interest on loans and advances, investment income and discount income are stated at gross amount as per requirement of BRPD
Circular no 14 dated June 25, 2003.
2.14.5 Written off loans and advances
Loans and advances with no realistic prospect of recovery have been written off against which full provisions were made earlier
and legal cases initiated but pending, except the state owned enterprises for which no legal actions have been taken. Detailed
memorandum records for all such written off accounts are maintained without reducing the Bank’s claim. Written off loans are
calculated according to BRPD Circular no 2, dated January 13, 2003, DOS Circular no 1, dated December 29, 2004 and BRPD circular
no.13, November 7, 2013.
2.15 Fixed assets and depreciation
a) Fixed assets are stated at cost of acquisition/valuation less accumulated depreciation.
b) Depreciation is charged on straight-line method on all fixed assets at the following rates per annum:

Fixed Assets Rate of depreciation


Land Nil
Building 2.50%
Furniture and Fixture 10.00%
Library Books 10.00%
Motor Vehicles 20.00%
Office Equipment 20.00%
Electric Materials 20.00%
Computer and Computer accessories 20.00%

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c) Depreciation at the applicable rates is charged proportionately on additions made during the year from the month of their
acquisition if such assets are acquired in the first half of the month. Depreciation is charged on assets retiring during the
year for the period up to the end of the month of their retirement if assets are retiring in the second half of the month.

d) Upon retirement of items of fixed assets the cost and accumulated depreciation are eliminated from the accounts and the
resulting gains or losses, if any, are transferred to Profit and Loss Account.

e) Repairs and maintenances costs of fixed assets are treated as revenue expenditure and charged to Profit and Loss Account
when they are incurred. Depreciation of premises and equipment is included in general and administrative expenses.
Repairs and maintenances are charged to general and administrative expenses and improvements of fixed assets are
capitalized. Gain or loss on sale of fixed assets is recognised in profit and loss statement as per provision of BAS 16 “Property,
Plant and Equipment”.

2.16 Other Assets

2.16.1 Provision for other assets

Other assets have been classified as per BRPD Circular No. 14 dated June 25, 2003 of Bangladesh Bank and necessary provisions
made thereon accordingly and for items not covered under the circular, adequate provisions have been made considering their
realize ability.

2.16.2 Written off other assets

Other assets having no realistic prospect of recovery have been written off against full provision without reducing the claimed
amount of the Bank. Notional balances against other assets written off have been kept to maintain the detailed memorandum
records for such accounts/assets.

2.17 Reconciliation of inter branch transactions

Inter branch transactions are reconciled on a regular basis and balance of un-reconciled entries at the closing date is accounted for
according to its nature.

2.18 Assets pledged as security

The Bank has no secured liabilities except as mentioned in Note-10.2 to the financial statements and there was no asset pledged as
security against liabilities.

2.19 Revenue recognition

Revenue is recognized only when it is probable that the economic benefits associated with the transaction will flow to the entity.
Items are treated as revenue/income when there is no existence of risk or uncertainty regarding their realize ability.

2.20 Fees and commissions

The recognition of fees revenue including commissions is determined by the purpose for the fees and the basis of accounting for
any associated financial instruments. Fees earned from services that are provided over a specified service period are recognized over
that service period. Fees earned for the completion of a specific service or significant event are recognized when the service has
completed or the event has occurred.

Fees and commissions consist mainly of fees for opening of letters of credit and issuance of guarantees in BDT and in foreign
currencies. Fees and commissions are charged when they become due. Commissions arising from foreign currency transactions are
reported as income.

2.21 Interest paid and expenses

In terms of the provision of the Bangladesh Accounting Standard (BAS-1) Presentation of Financial Statements, the interests and
other expenses are recognized on accrual basis.

2.22 Retirement benefit scheme

The Bank operates two alternative retirement benefit schemes for its permanent employees, elements of which are as under:

a) Contributory provident fund (CPF) scheme

i) Employees’ contribution 10%;

ii) Bank’s contribution 10%;

iii) This fund is operated by a Board comprising of 6 Trustees and

iv) Employees enjoying contributory provident fund facilities are entitled to get gratuity for 2 months last basic pay
drawn for each completed year of service subject to completion of minimum 10 years of service.

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b) General pension fund scheme

i) Pension

The Bank operates a pension scheme. This fund is operated by a Board comprising of 7 Trustees.

ii) Annual provision

Year % of basic pay


1986 to 1994 10%
1995 to 1999 18%
2000 to 2003 25%
2004 to 2005 30%
2006 35%
2007 to 2013 30%
2014 to 2015 50%

This has been named as Superannuation Fund (SAF) created for paying pension to retiring employees. It is fully funded.

iii) General provident fund (GPF)

Employees opted for pensions are also contributing 10%-25% of basic salary as per their desire to GPF. The Bank
does not contribute any amount to the GPF against these employees. The Fund is shown under Sundry Deposit.

2.23 Death relief grant scheme

The Bank operates a Death Relief Grant Scheme since January 01, 1989, which replaced the group insurance scheme. The scheme is
applicable to all employees of the Bank and payments out of this fund are made to the successors of the employees on their death
while in Bank’s service and quantum of payment is determined as per scale and grade of such employees.

2.24 Taxation

The Bank recognizes the current and deferred tax in the financial statements using the provisions of the prevailing tax laws applicable
in Bangladesh and as per BAS-12 (Income Taxes). Current and deferred taxes are charged or credited to equity if the tax relates to
items that are charged or credited directly to equity. Status of current and deferred tax is as under:

i) Past tax liability: Income Tax assessment has been finalized up to 2003, 2004 and 2007. Appeal is pending for the year 2002,
2005, 2006, 2008, 2009 and 2010. The return has been submitted for the year 2011, 2012, 2013 and 2014. The submission of
tax return for the year 2015 is in process.

ii) Current tax: Tk. 196.23 million (consolidated) has been made for provision for the year 2015 as against Tk. 209.52 million
(consolidated) in the year 2014. Details of Tax assessment are shown annexure-F. While calculating provision for tax,
‘Amortization of Valuation Adjustment’ amounting to Tk.1,329.50 million has been considered as admissible expense.

iii) Deferred tax: Deferred tax has been calculated as per Bangladesh Accounting Standard-12 Income Taxes. Calculation shows
deferred tax assets of Tk. 8,344.80 million (Note - 9.6), which has been accounted for accordingly as against previous year’s
figure of Tk. 6,961.85 million. Difference amount of Tk. 1382. 95 million has been credited to the Profit & Loss Account.

2.25 Provisions

Provisions are recognized if the Bank has a present legal or constructive obligation as a result of past events, if it is probable that an
outflow of resources will be required to settle the obligation, and a reliable estimation can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation as of the
Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation.

2.26 Loan commitments

No loan commitments are found to be designated at fair value through profit or loss under the fair value option. All loan
commitments remain as off balance sheet item.

2.27 Offsetting of asset and liability

The value of any asset or liability as shown in the balance sheet are not off-set by way of deduction from another liability or asset
unless there exist a legal right therefore. No such incident existed during the year.

189
2.28 Financial guarantees
Financial guarantee contracts are contracts that require the issuer to make specified payments to reimburse the holder for a loss
it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument. Such
financial guarantees are given to banks, financial institutions and other parties on behalf of customers to secure loans, overdrafts,
other banking facilities and other various payments. Financial guarantees are recognized in the financial statements at fair value on
the date the guarantee was given as contingent liability.
2.29 Events after Reporting Period
As per BAS -10 “Events after Reporting Period” events after the reporting period are those events, favourable and unfavourable, that
occur between the end of the reporting period and the date when the financial statements are authorised for issue. Two types of
events can be identified:

(a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the reporting
period); and

(b) those that are indicative of conditions that arose after the reporting period (no adjusting events after the reporting period).
2.30 Segment reporting
For the purpose of Segment Reporting as per Bangladesh Financial Reporting Standard-8 “Operating Segments”, the following
segments relating to revenue, expenses, assets and liabilities have been identified and shown in the related notes accordingly as
primary/secondary segments.

i) domestic operations in line with geographical segments;

ii) banking operations comprising of branches of the banking entity; and

iii) treasury operations comprising of the banking entity.


Information regarding the result of each reportable segment is included in Annexure-M. Performance is measured based on
segment profit before provision, as included in the internal management reports that are reviewed by the Bank’s Management.
Segment report is used to measure performance as Management believes that such information is the most relevant in evaluating
the results of certain segments relative to other entities that operate within these industries.
2.31 Risk management
Being a financial institution, in the ordinary course of business, the bank is sensitive to verities of risks. The generic severity of such
risk(s) is much intense in our locality due to presence of large number of banks and complex financial transactions. In such highly
competitive environment to ensure a bank’s consistent system and performance, the presence of strong Risk Management culture
is obligatory. Being compliant, the bank is now looking forward to take risk management practice to a different level, i.e. preventing
risk before occurrence rather than a reactive manner; on a proactive basis. As a part of regulatory and global benchmarking the bank
has based upon 06 (six) core risks guidelines of Bangladesh Bank and Basel framework. Listed below are the identified risks the bank
is currently managing or intents to manage in the future:

Sl. No. Core Risk Guideline of BB Basel Accord Pillar


1 Credit Risk Credit Risk
Pillar - I
2 Foreign Exchange Risk Market Risk
&
3 Asset Liability Risk Operational Risk
Pillar - II
4 Money Laundering Risk Residual Credit Risk
5 Internal Control & Compliance Risk Residual Risk (CRM) Pillar –II
6 ICT Risk Residual Market Risk – Equity Pillar –II
7 Residual Market Risk - Currency Pillar –II
8 Credit Concentration Risk Pillar –II
9 Liquidity Risk Pillar –II
10 Interest Rate Risk Pillar –II
11 Settlement Risk Pillar –II
12 Reputation Risk Pillar –II
13 Strategic Risk Pillar –II
14 Pension Obligation Risk Pillar –II
15 Compliance Risk Pillar –II

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ANNUAL REPORT 2015

Accordingly the bank has various high powered committees to monitor and ensure smooth risk management activities. For
example, Management Committee (MANCOM), Asset Liability Committee (ALCOM), Credit Committee (CC), Audit Committee, etc.
To manage the overall risks of the bank in line of Basel the bank has formed a dedicated Risk Management Division. The details of
ABL’s risk management are shown in the chapter “Risk Management”.
2.32 Related party transactions
A party is related to the company if
i) directly or indirectly through one or more intermediaries, the party controls, is controlled by, or is under common control with,
the company; has an interest in the company that gives it significant influence over the company; or has joint control over the
company;

ii) the party is an associate;

iii) the party is a joint venture;

iv) the party is a member of the key management personnel of the Company or its parent;

v) the party is a close member of the family of any individual referred to in (i) or (iv);

vi) the party is an entity that is controlled, jointly controlled or significantly influenced by or for which significant voting power in
such entity resides with, directly or indirectly, any individual referred to in (iv) or (v); or

vii) the party is a post-employment benefit plan for the benefit of employees of the company, or of any entity that is a related party
of the company.
Related party transaction is a transfer of resources, services, or obligations between related parties regardless a price is charged as
per BAS 24- Related party disclosures. Details of related party transactions are disclosed in Annexure- A.
2.33 Directors’ responsibilities on statement
The Board of Directors takes the responsibilities for the preparation and presentation of these financial Statements.
2.34 Approval of financial statements
The financial statements were approved by the board of directors on April 28, 2016.
2.35 Credit Rating of the Bank
As per the BRPD circular no. 6 dated 5 July 2006, the Bank has done its credit rating by Credit Rating Information and Services
Limited (CRISL) based on the financial statements of Agrani Bank Limited dated 31 December 2014. The following ratings had been
awarded:

Long Term Short Term
Basis of Rating Outlook
2014 2013 2014 2013
As Government Entity AAA AAA AR-1 ST-1 Stable
As Commercial Bank Entity A A- AR-2 ST-2 Stable

2.36 Compliance of Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS)

Name of Bangladesh Accounting Standards (BAS) BAS No. Status


Presentation of Financial Statements 1 Applied
Inventories 2 N/A
Statement of Cash Flows 7 Applied
Accounting Policies, Changes in Accounting Estimates and Errors 8 Applied
Events after the Reporting Period 10 Applied
Construction Contracts 11 N/A
Income Taxes 12 Applied
Property, Plant and Equipments 16 Applied
Leases 17 N/A

191
Name of Bangladesh Accounting Standards (BAS) BAS No. Status
Revenue 18 Applied
Employee Benefits 19 Applied

Accounting for Govt. Grants and Disclosure of Government Assistance 20 N/A

The Effects of Changes in Foreign Exchange Rates 21 Applied

Borrowing Costs 23 N/A

Related Party Disclosures 24 Applied

Accounting & Reporting by Retirement Benefit Plans 26 Applied

Consolidated and Separate Financial Statements 27 Applied

Investments in Associates 28 N/A

Interest in Joint Ventures 31 N/A

Financial Instruments: Presentation 32 Applied*

Earnings per share 33 Applied

Interim Financial Reporting 34 N/A

Impairment of Assets 36 Applied

Provisions, Contingent Liabilities and Contingent Assets 37 Applied

Intangible Assets 38 Applied

Financial Instruments: Recognition and Measurement 39 Applied*

Investment Property 40 N/A *

Agriculture 41 N/A

Name of Bangladesh Financial Reporting Standards (BFRS) BFRS No. Status


First-time Adoption of Bangladesh Financial Reporting Standards 1 Applied

Share-Based Payment 2 N/A

Business Combinations 3 N/A

Insurance Contracts 4 N/A

Non-Current Assets Held for Sale and Discontinued Operations 5 N/A

Exploration for and Evaluation of Mineral Resources 6 N/A

Financial Instruments: Disclosures 7 Applied*

Operating Segments 8 Partly Applied

Financial Instruments 9 N/A

Consolidated Financial Statements 10 Applied

Joined Arrangement 11 N/A

Disclosure of Interest in Other Entities 12 Applied

Fair value Measurement 13 Applied

* Subject to departure mentioned earlier

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ANNUAL REPORT 2015

2.37 Audit Committee

Name Status with Bank Status with Committee Address

Additional Secretary
Room No. 06, Block No. 16
Mr. Arastoo Khan Director Chairman Planning Commission Complex
Sher-E-Bangla Nagar, Dhaka.

Engineer and Industrialist


Engineer Md. Abdus Sabur Director Member 4, Motijheel C/A, Dhaka.

Eastern Arzoo Complex


Advocate Balaram Podder Director Member 61 BijoyNagar, Dhaka.

DIG of Police (Retd.)


Mr. Md. Altaf Hossain Molla Director Member Garden Value, Flat No. A-3
51/1, Circular Road, Dhaka.


The detail of ABL’s Audit Committee is given in the chapter “Report of the Board Audit Committee”.

2.38 General:

a) Figures have been rounded off to the nearest taka.

b) Prior Year’s figures have been shown for comparison purposes and rearranged wherever necessary to conform to
current year’s presentation.

c) Conversion rate is calculated based on the simple average of buying and selling rate.

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3 Cash 33,737,533,977 30,196,202,546


Cash and Cash Equivalent includes Libyan Currency (2,612,023) equivalent to BDT 147,579,300 which was purchased by Agrani
Bank Limited before the war and revolution of 17th February in 2011 in Libya . After that war those currency were obsolete.
3.1 Cash in Hand:
Local Currency 3,881,069,267 3,995,786,523
Foreign Currencies 174,605,026 243,227,611
4,055,674,293 4,239,014,134

3.2 Balance with Bangladesh Bank and its agent bank:


Bangladesh Bank (Note - 3.2.1) 27,789,324,434 24,324,124,731
Sonali Bank Limited as agent of Bangladesh Bank (Note - 3.2.2) 1,892,535,250 1,633,063,681
29,681,859,684 25,957,188,412
Total (Note 3.1+3.2) 33,737,533,977 30,196,202,546

3.2.1 Balance with Bangladesh Bank


Local Currency 27,754,310,976 24,050,303,218
Foreign Currencies- Annexure-E(2) 35,013,458 273,821,513
27,789,324,434 24,324,124,731

3.2.2 Balance with Sonali Bank Limited


Local Currency 1,892,535,250 1,633,063,681
Foreign Currencies - -
1,892,535,250 1,633,063,681
3.3 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR):
Cash Reserve Requirement and Statutory Liquidity Ratio have been calculated and maintained as per Section 33 of the Banking
Companies Act 1991 (Amended upto 2013) and BRPD Circular No (P)683/2005-2996 dated 25-08-05.
As per MPD Circular No.116/2014-853 dated 23 June, 2014,of Bangladesh Bank (effective from 24 June, 2014), all scheduled banks
are required to maintain a CRR minimum 6.5% on bi-weekly basis based on weekly average demand and time liabilities of two
months prior to current month and minimum 6.0% on daily basis. Agrani Bank Limited has been maintaining CRR according to
that policy.

3.3.1 Cash Reserve Requirement (Daily Basis)


Reserve Required @ 6.0 % of Total Demand and Time Liabilities 24,665,484,000 20,572,231,000
Actual Reserve held 27,024,347,000 23,680,507,000
Surplus/ (Deficit) 2,358,863,000 3,108,276,000

3.3.1.a CRR of Islamic Banking Unit (Daily Basis)


Reserve Required @ 6.0 % of Total Demand and Time Liabilities 139,640,360 134,373,610
Actual Reserve held 468,559,000 158,036,000
Surplus/ (Deficit) 328,918,640 23,662,390

As per MPD Circular No.116/2014-853 dated 23 June, 2014, daily CRR may kept @ 6.0% on daily basis. But bi-weekly average
amount not below 6.5% of Total Time & Demand Liabilities.

3.3.2 Cash Reserve Requirement (Bi-Weekly Average)


Required Reserve @ 6.5 % of Average Demand and Time Liabilities 26,720,941,000 22,286,584,000
Actual Reserve held 27,024,347,000 23,680,507,000
Surplus/(Deficit) 303,406,000 1,393,923,000

3.3.2.a CRR of Islamic Banking Unit (Bi-Weekly Basis)


Required Reserve @ 6.5 % of Average Demand and Time Liabilities 151,277,060 145,571,410
Actual Reserve held 468,559,000 158,036,000
Surplus/(Deficit) 317,281,940 12,464,590

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3.3.3 Statutory Liquidity Ratio (SLR)


Required Reserve @13 % of Total Demand and Time Liabilities 53,441,882,000 44,573,168,000
Actual Reserve held 177,674,697,857 127,064,333,681

Cash in hand 4,045,082,000 4,288,932,000


Excess of CRR 303,406,000 1,393,923,000
Balance with Sonali Bank (as a agent of BB) 1,892,535,250 1,633,063,681
Un encumbered Approved Securities ( HTM ) 66,206,574,146 26,839,276,000
Un encumbered Approved Securities ( HFT ) 72,468,976,491 57,993,451,000
Other eligible securities (HTM) 32,758,123,970 34,915,688,000
Total 177,674,697,857 127,064,333,681
Surplus/(Deficit) 124,232,815,857 82,491,165,681

3.3.3.a SLR of Islamic Banking Unit


Required Reserve @13 % of Total Demand and Time Liabilities 128,003,670 12,317,581
Actual Reserve held 439,396,940 138,095,000

Cash in hand 2,115,000 3,130,000


Excess of CRR 317,281,940 12,465,000
Balance with Sonali Bank (as a agent of BB) - -
Eligible Securities (Bangladesh Govt. Islami Investment Bond) 120,000,000 122,500,000
439,396,940 138,095,000
Surplus/(Deficit) 311,393,270 125,777,419

3(a) Consolidated Cash


(i) Cash in Hand:
Agrani Bank Limited 4,055,674,293 4,239,014,134
Agrani Equity & Investment Limited - -
Agrani SME Financing Company Limited 78,654 121,190
Agrani Exchange House Private Limited, Singapore 138,841,033 101,083,555
Agrani Remittance House SDN. BHD., Malaysia 17,449,500 24,381,880
Agrani Remittance House Canada Inc. 512,893 1,837,385
Agrani Exchange Company (Australia) Pty. Limited 6,558,306 13,437,021
4,219,114,679 4,379,875,165

(ii) Balance with Bangladesh Bank and its agent bank :


Agrani Bank Limited 29,681,859,684 25,957,188,412
Agrani Equity & Investment Limited - -
Agrani SME Financing Company Limited 5,200,000 5,000,000
Agrani Exchange House Private Limited, Singapore - -
Agrani Remittance House SDN. BHD., Malaysia - -
Agrani Remittance House Canada Inc. - -
Agrani Exchange Company (Australia) Pty. Limited - -
29,687,059,684 25,962,188,412
33,906,174,363 30,342,063,577
4 Balance with Other Banks & Financial Institutions
In Bangladesh (Note - 4.1) 17,985,710,914 13,041,158,402
Foreign currencies (Outside Bangladesh) Annexure E-1 2,937,587,896 2,334,709,196
20,923,298,810 15,375,867,598

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4.1 In Bangladesh: Local Currency
Bank
Al-Arafah Islami Bank Limited 2,802,045,089 1,740,761,655
Ansar VDP Unnayan Bank 380,000,000 -
Bangladesh Commerce Bank Limited 300,000,000 500,000,000
Bangladesh Development Bank Limited 500,000,000
NRB Commercial Bank Ltd. 250,000,000 -
AB Bank Limited 1,000,000,000
ICB Islamic Bank Limited 73,984,367 79,896,747
Comm. Bank of Ceylon 500,000
Basic Bank Ltd. 3,000,000,000 2,000,000,000
Mercantile Bank Ltd. 500,000,000
ICB 4,000,000,000 2,000,000,000
Rajshahi Krishi Unnayan bank 2,500,000,000 2,000,000,000
Islami Window 109,681,458 -
National Bank of Pakistan 400,000,000 -
13,815,710,914 10,321,158,402
Other Financial Institutions
Bangladesh Financial Investment Company Limited 300,000,000 400,000,000
Delta Brac Housing Finance Corporation Ltd. 600,000,000 -
FAS Finance & Investment Company Limited 300,000,000 -
Fidelity Asset & Security Limited - 250,000,000
First Finance & Investment Limited 400,000,000 200,000,000
GSP Finance Company Limited 100,000,000 -
Lanka Bangla Limited 400,000,000 -
Peoples Leasing, Finance & Investment Limited 670,000,000 700,000,000
Premier Leasing & Finance Ltd. 400,000,000 320,000,000
Reliance Finance Limited 500,000,000 300,000,000
Fareast Finance & Investment Company Limited 300,000,000 250,000,000
Union Capital Limited 200,000,000 300,000,000
4,170,000,000 2,720,000,000
17,985,710,914 13,041,158,402
4.2 Balance with Other Banks and Financial Institutions (Account wise):
Current & Other Accounts 2,937,587,896 2,334,709,196
Fixed Deposit Receipts (FDR) 17,985,710,914 13,041,158,402
20,923,298,810 15,375,867,598
4.3 Maturity grouping of balances:
On demand 2,937,587,896 2,334,709,196
Within 1 to 3 months 11,500,000,000 8,500,000,000
Within 3 to 12 months 2,765,710,914 1,821,158,402
Within 1 to 5 years 3,720,000,000 2,720,000,000
More than 5 years - -
20,923,298,810 15,375,867,598
4(a) Consolidated balance with other banks and financial institutions
(i) In Bangladesh
Agrani Bank Limited 17,985,710,914 13,041,158,402
Agrani Equity & Investment Limited 635,171 904,960
Agrani SME Financing Company Limited 731,863,269 824,412,829
Agrani Exchange House Private Limited, Singapore - -
Agrani Remittance House SDN. BHD., Malaysia - -
Agrani Remittance House Canada Inc. - -
Agrani Exchange Company (Australia) Pty. Limited - -
18,718,209,354 13,866,476,191
Less: Inter-company transaction(s) (726,198,439) (749,317,789)
17,992,010,915 13,117,158,402

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(ii) Outside Bangladesh
Agrani Bank Limited 2,937,587,896 2,334,709,196
Agrani Equity & Investment Limited - -
Agrani SME Financing Company Limited - -
Agrani Exchange House Private Limited, Singapore - 44,001,825
Agrani Remittance House SDN. BHD., Malaysia 54,750,000 68,486,440
Agrani Remittance House Canada Inc. - -
Agrani Exchange Company (Australia) Pty. Limited - -
2,992,337,896 2,447,197,461
20,984,348,811 15,564,355,863
5 Money at call and short notice
With Bank
AB Bank Limited 150,000,000 -
Standard Bank Limited - 300,000,000
Midland Bank Limited - 100,000,000
The City Bank Limited - 1,000,000,000
Jamuna Bank Limited - 500,000,000
Mutual Trust Bank Limited - 300,000,000
One Bank Limited - 200,000,000
Com. Bank of Ceylon - 350,000,000
National Bank of Pakistan 100,000,000 150,000,000
250,000,000 2,900,000,000
With Non-Bank Financial Institution
BD Finance & Investment Limited 90,000,000 -
IDLC Bangladesh Limited 160,000,000 100,000,000
Lanka Bangla Finance Limited - 200,000,000
Prime Finance & Investment Limited 80,000,000 -
United Leasing Limited - 100,000,000
ICB 800,000,000 1,350,000,000
ILFSL 200,000,000 100,000,000
Union Capital Limited - 80,000,000
DBH - 200,000,000
Other Non-Banking Financial Institutions 12,226,706 -
1,342,226,706 2,130,000,000
Total 1,592,226,706 5,030,000,000

6 Investments
Government Securities (Note- 6.1 ) 180,993,848,737 129,673,903,447
Other Investment (Note- 6.2 ) 24,703,637,122 22,605,851,464
Total 205,697,485,859 152,279,754,911

6.1 Government Securities:


Treasury Bills (Note- 6.1.1 ) 84,087,861,852 36,581,326,618
Govt. Treasury Bond/Other Govt. Bond/Other Securities (Note- 6.1.2 ) 85,704,774,041 89,017,178,869
Prize Bonds (at cost) 15,974,100 14,118,150
Reverse REPO (Annexure-B 4) 11,185,238,744 4,061,279,810
Sub total 180,993,848,737 129,673,903,447

6.1.1 Treasury Bills


30 days Bangladesh Bank Bills 31,740,484,696 -
91 days Treasury Bills 15,811,491,956 17,988,818,263
182 days Treasury Bills 24,230,936,914 11,910,804,276
364 days Treasury Bills 12,304,948,286 6,681,704,079
Sub total 84,087,861,852 36,581,326,618

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Taka Taka
6.1.2 Govt. Treasury Bond/Other Govt. Bond/Other Securities
2 years Bangladesh Govt. Treasury Bond 987,027,230 1,306,103,000
5 years Bangladesh Govt. Treasury Bond 7,233,201,702 7,489,473,944
10 years Bangladesh Govt. Treasury Bond 20,271,793,148 19,073,069,592
15 years Bangladesh Govt. Treasury Bond 7,855,541,515 8,357,097,750
20 years Bangladesh Govt. Treasury Bond 6,157,633,398 5,764,074,069
25 years Treasury Bond (Jute Bond) 182,143,000 249,707,000
5-10 Yrs.(Agrani Bank-BPC) T.Bond 25,826,800,000 27,826,800,000
5-13 Yrs.(Agrani Bank-BJMC) T.Bond 6,118,600,000 6,118,600,000
10 years Bangladesh Govt. Treasury Bond (Remeasured) 897,253,048 1,099,963,920
Debenture (HBFC) - 90,000,000
2,5 & 10 years Bangladesh Govt. Treasury Bond (Lien with BB infavour of SCB) 10,174,781,000 11,642,289,594
85,704,774,041 89,017,178,869
169,792,635,893 125,598,505,487
6.1.3 Investment in Government securities classified as per Bangladesh Bank’s DOS Circular Letter No. 05 dated 26 May 2008
and 28 January 2009
Held to Maturity (HTM) 98,964,698,116 61,754,963,815
Held for Trading (HFT) 72,468,976,491 57,993,451,385
171,433,674,607 119,748,415,199
6.1.3 (a) Held to Maturity (HTM)
Treasury Bill
30 days Bangladesh Bank Bills 31,740,484,696
182 days Treasury Bills 7,308,119,206 997,616,796
364 days Treasury Bills 5,495,537,004 2,378,681,022
44,544,140,906 3,376,297,818
Bond/Other Securities
2 years Bangladesh Govt. Treasury Bond 987,027,230 1,152,960,418
5 years Bangladesh Govt. Treasury Bond 1,876,670,796 2,529,891,963
10 years Bangladesh Govt. Treasury Bond 7,404,874,638 8,304,467,085
15 years Bangladesh Govt. Treasury Bond 5,699,716,875 5,643,109,422
20 years Bangladesh Govt. Treasury Bond 4,796,890,653 4,731,656,797
25 years Treasury Bond (Jute Bond) 182,143,000 249,707,000
5-10 Yrs.(Agrani Bank-BPC) T.Bond 25,826,800,000 27,826,800,000
5-13 Yrs.(Agrani Bank-BJMC) T.Bond 6,118,600,000 6,118,600,000
Approved Debenture (HBFC) - 90,000,000
10 years Bangladesh Govt. Treasury Bond (Remeasured) 897,253,048 1,100,892,342
ICB 630,580,970 630,580,970
54,420,557,210 58,378,665,997
98,964,698,116 61,754,963,815
6.1.3 (b) Held for Trading (HFT)
Treasury Bill
91 days Treasury Bills 15,811,491,956 17,988,818,263
182 days Treasury Bills 16,922,817,709 10,913,187,480
364 days Treasury Bills 6,809,411,282 4,303,023,057
39,543,720,947 33,205,028,800
Bond/Other Securities
2 years Bangladesh Govt. Treasury Bond - 153,141,770
5 years Bangladesh Govt. Treasury Bond 5,356,530,906 5,159,827,016
10 years Bangladesh Govt. Treasury Bond 12,866,918,509 11,666,712,693
15 years Bangladesh Govt. Treasury Bond 2,155,824,640 2,714,859,080
20 years Bangladesh Govt. Treasury Bond 1,360,742,745 1,032,602,216
Reverse Repo 11,185,238,744 4,061,279,810
32,925,255,544 24,788,422,585
72,468,976,491 57,993,451,385

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6.2 Other Investment
Subordinated Bond (Note- 6.2.1) 4,707,400,000 2,408,000,000
Shares (Note- 6.2.2) 19,996,237,103 20,197,851,445
Un-approved Debenture (Annexure-D) 19 19
Sub total 24,703,637,122 22,605,851,464

6.2.1 Subordinated Bond


Prime Bank Ltd. Subordinated Bond 180,000,000 180,000,000
Mutual Trust Bank Ltd. Subordinated Bond 225,000,000 300,000,000
NBL Subordinated Bond 102,400,000 128,000,000
UCBL Subordinated Bond-I 300,000,000 300,000,000
One Bank Subordinated Bond 500,000,000 500,000,000
AB Bank Subordinated Bond-I 500,000,000 500,000,000
Southeast Bank Subordinated Bond 500,000,000 500,000,000
EBL Floating Rate Dated Subordinated Bond 200,000,000 -
Bank Asia Floating Rate Dated Subordinated Bond 200,000,000 -
Prime Bank Floating Rate Dated Subordinated Bond 200,000,000 -
EXIM Bank Floating Rate Dated Subordinated Bond 500,000,000 -
UCBL Subordinated Bond-II 200,000,000 -
Al-Arafah Islami Bank Subordinated Bond 300,000,000 -
AB Bank Subordinated Bond-II 500,000,000 -
Standard Bank Subordinated Bond 300,000,000 -
4,707,400,000 2,408,000,000
6.2.2 Shares
Share Quoted (Annexure-C 1) 9,895,074,938 9,963,963,080
Share Un-Quoted (Annexure-C 2) 10,101,162,165 10,233,888,365
19,996,237,103 20,197,851,445

6.3 Maturity grouping of Investment


On demand 15,974,100 14,118,150
Within 1 to 3 months 83,502,526,449 35,383,090,242
Within 3 to 12 months 33,668,245,565 20,241,414,639
Within 1 to 5 years 41,446,492,411 41,523,910,443
More than 5 years 47,064,247,334 55,117,221,437
205,697,485,859 152,279,754,911

6.4 Net Investments:


Carrying amount 205,697,485,859 152,279,754,911
Less: Provision (Note - 12.11) 5,599,792,795 5,966,361,834
Net Investment 200,097,693,064 146,313,393,077

6.5 Shares at cost under “Other Investments” include Tk. 3,000,000,000 shares purchased under sale and buy back guarantee. The
investment in shares include 6,250,000 shares @ Tk. 200 of Unique Hotel and Resorts Limited on 10 November 2010, 13,500,000
shares @ Tk. 80 of Bextex Limited on 28 November 2010 & 19,875,981 shares @ Tk. 33.71 of GMG Airlines on 2 February 2011 in
terms of 20% return on invested amount. Later on addition 12,500,000 shares of Bextex Limited in 2011. Only the shares from GMG
Airlines have been transferred in the name of the bank. Moreover the sale & buy back agreement has also expired on 31 July 2012&
hence the exercise period of the sale & buy back option has also expired. GMG Airlines has suspended its all flight operations from
30 March 2012.

The market value of above shares as on 31 December 2015 was Tk. 467,050,000 resulting in a decrease of Tk 2,532,950,000 from
the acquisition cost of investment. A provision of Tk. 2,532,950,000 has been made against such decrease. As the share prices
has fallen, the guarantor has given 19,947,211 shares of Beximco Limited & 9,900,000 shares of Shine Pukur Ceramics Limited as
pledge in favor of the bank totally market value was Tk. 688,359,119 as at 31 December 2015. The bank has recovered amounting
Tk. 1,000,000,000.

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Taka Taka
6(a) Consolidated investments
(i) Government Securities
Agrani Bank Limited 180,993,848,737 129,673,903,447
Agrani Equity & Investment Limited - -
Agrani SME Financing Company Limited - -
Agrani Exchange House Private Limited, Singapore - -
Agrani Remittance House SDN. BHD., Malaysia - -
Agrani Remittance House Canada Inc. - -
Agrani Exchange Company (Australia) Pty. Limited - -
180,993,848,737 129,673,903,447
(ii) Others
Agrani Bank Limited 24,703,637,122 22,605,851,464
Agrani Equity & Investment Limited 6,851,905,681 6,280,104,837
Agrani SME Financing Company Limited - -
Agrani Exchange House Private Limited, Singapore - -
Agrani Remittance House SDN. BHD., Malaysia - -
Agrani Remittance House Canada Inc. 22,520,000 26,551,800
Agrani Exchange Company (Australia) Pty. Limited - -
31,578,062,803 28,912,508,101
Total Investments (i+ii) 212,571,911,540 158,586,411,548

7 Loans and Advances 244,801,833,138 235,085,714,197

7.1 In Bangladesh and Outside Bangladesh


In Bangladesh:
a) Loans
Rural Credits 11,874,670,003 10,632,086,366
Weavers Credits 8,253,957 8,268,176
Industrial Credits 71,069,550,289 65,454,670,742
Jute Advances 9,799,948,786 8,547,450,399
Leather Sector Advances 3,838,715,098 3,867,123,324
Staff Loans 29,084,861,791 25,985,990,394
Loan (Others) 43,228,113,784 40,194,771,053
Small and Micro Credits including SME 39,140,594,564 17,559,322,040
208,044,708,272 172,249,682,494
b) Cash credits
Cash Credits 26,413,274,785 41,702,742,988
Packing Credits 1,208,619,049 1,206,040,761
Loan Against Imported Merchandise (LIM) 317,230,527 387,182,480
Payment Against Documents (PAD) 540,053,986 463,372,369
28,479,178,347 43,759,338,598
c) Overdrafts 3,542,072,233 13,592,315,597
Total (a+b+c) 240,065,958,852 229,601,336,689

Outside Bangladesh: 37,263,823 27,965,167


Total Loans, Cash Credit & Over Draft etc. 240,103,222,675 229,629,301,856
Bills Purchased & Discounted (Note - 7.11) 4,698,610,463 5,456,412,341
Total Loans and Advances 244,801,833,138 235,085,714,197

7.2 Maturity grouping of loans and advances:


On demand 29,731,325,567 24,414,825,567
Within 1 to 3 months 31,271,445,857 30,031,345,857
Within 3 to 12 months 78,120,062,197 66,504,243,256
Within 1 to 5 years 39,895,925,466 37,695,125,466
More than 5 years 65,783,074,051 76,440,174,051
244,801,833,138 235,085,714,197

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7.3.a Disclosure for significant concentration
Advances to allied concerns of Directors -
Advances to Managing Director - -
Advances to Other Executives 18,273,197,364 16,297,172,194
Advances to Customers’ Group 155,459,085,485 153,333,871,261
Industrial Credits 71,069,550,289 65,454,670,742
244,801,833,138 235,085,714,197
7.3.b Disclosure for sector-wise loans and advances
Government sector - 14,649,600,000
Other public sector 6,683,000,000 18,690,248,455
Private sector 238,118,833,138 201,745,865,742
244,801,833,138 235,085,714,197
7.3.c Disclosure on large loan
Disclosure on large Loan i.e.- loan sanctioned to any individual or enterprise or any organization of a group amounting to 10%
or more of the Bank’s total capital according to Bangladesh Bank circular BRPD 04, dated 29.01.2015 where paid-up capital is Tk.
20,722,940,400.
Amount of outstanding
Powerpack Motiara Power Plant Limited 6,777,300,000 6,894,800,000
Bashundhara Group 3,383,800,000 3,493,000,000
Bangladesh Petroleum Corporation 8,053,200,000 22,346,600,000
Dhaka Hyde & Skins Limited 2,285,400,000 2,265,300,000
Tanaka Group 5,116,700,000 -
Orion Group 8,207,000,000 -
Joj Bhuiya Group 4,948,900,000 -
Pecefic Group 2,504,500,000 -
Sad Musa Fabrics Ltd Unit 2,759,800,000 -
Beximco Group 4,304,600,000 -
Magpie Group 3,225,400,000 -
51,566,600,000 34,999,700,000

7.3.d Disclosure on large loan re-strucruring


The Bank has restucture large loan facilities of following clients for an aggregate amount of Tk. 7,825,900,000 under BRPD Circular
No. 04 dated 29 January 2015 as approved by Bangladesh Bank vide BRPD Letter No. BRPD(P-1)/661 /13(Cha)/2015-11522 dated
02 September 2015.
Keya Earn Mills Ltd. 360,900,000 -
M R Sweater Compose Ltd. 1,044,100,000 -
Julia Sweater Compose Ltd. 807,300,000 -
Jamuna Spinning Mills Ltd. 353,100,000 -
Bangladesh Export Import Company Ltd. 4,099,700,000 -
S A Oil Refinary Ltd. 394,300,000 -
Samannaj Super Oil Ltd. 766,500,000 -
7,825,900,000 -
7.4 Geographical Location - wise Loans and Advances:
A. Urban:
Dhaka Region 144,642,041,900 138,901,238,144
Chittagong Region 22,728,431,995 21,826,346,640
Khulna Region 12,047,469,096 11,569,308,287
Rajshahi Region 9,819,784,558 9,430,039,949
Barisal Region 5,743,470,746 5,515,513,937
Sylhet Region 2,332,980,195 2,240,384,838
Rangpur 6,692,888,335 6,427,249,397
Mymensing Region 5,049,619,775 4,849,201,724
Comilla Region 5,561,528,403 5,340,792,836
Faridpur Region 4,481,123,696 4,303,269,101
Sub Total 219,099,338,700 210,403,344,852

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B. Rural:
Dhaka Region 4,764,794,491 4,575,681,079
Chittagong Region 433,314,119 416,115,998
Khulna Region 3,808,449,487 3,657,293,151
Rajshahi Region 4,057,025,020 3,896,002,788
Barisal Region 2,756,475,229 2,647,071,468
Sylhet Region 1,359,527,139 1,305,567,872
Rangpur 3,060,762,738 2,939,281,888
Mymensing Region 2,719,026,032 2,611,108,620
Comilla Region 1,825,299,667 1,752,854,014
Faridpur Region 917,820,517 881,392,467
Sub Total 25,702,494,438 24,682,369,345
Total (A + B) 244,801,833,138 235,085,714,197

7.5 Sector-wise Loans and Advances:


Agriculture and Fishery 11,874,640,003 10,632,088,316
Jute & Jute Goods 9,799,948,786 8,547,450,399
Transport Storage & Communication 3,456,597,000 956,645,617
Ship Breakings 1,193,500,000 957,652,966
Textile & Readymade Garments 20,359,200,000 15,731,325,870
Food & Allied Industry 2,800,040,000 6,180,011,830
Construction & Engineering 1,069,100,000 2,366,746,156
Pharmaceuticals and Chemicals 1,517,850,000 1,765,014,940
Leather Sector 3,838,715,098 3,867,123,324
Power Sector 9,046,800,000 9,314,000,000
Professional and Services 1,605,074,000 2,843,394,066
Housing Service 3,358,227,000 5,270,172,449
Wholesale/Retail Trading 27,300,114,250 37,360,068,287
Personal (staff and other personal loan) 29,084,668,654 25,985,970,394
Bank & Other Non-Financial Institution - -
Electronics & Automobile - -
Cement & Ceramic - -
Others 118,497,358,347 103,308,049,583
244,801,833,138 235,085,714,197

7.6 Loans & Advances are Classified as per Bangladesh Bank Circular:
Unclassified :
Standard (including staff loan) 188,990,388,278 190,500,803,957
Special Mention Account 9,407,342,502 4,925,452,245
198,397,730,780 195,426,256,202
Classified:
Sub-Standard 3,749,541,330 2,785,530,397
Doubtful 1,759,203,790 4,060,536,136
Bad & Loss 40,895,357,238 32,813,391,462
46,404,102,358 39,659,457,995
244,801,833,138 235,085,714,197
The amount of loans and advances were updated from December CL as Bangladesh bank has changed classification for certain
accounts and Bangladesh Bank has created provision for the amount of Tk. 272.11 crore.
7.7 Loans & Advances (Categories)

A. Inside Bangladesh

I. Continuous loan (CL-2)


Small & Medium Enterprise Finance 33,599,448,331 38,887,671,929
Other Than Small & Medium Enterprise Finance 40,681,095,601 44,862,478,972
74,280,543,932 83,750,150,901

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II. Demand loan (CL-3)
Small & Medium Enterprise 206,954,806 1,693,268,653
Other Than Small & Medium Enterprise 16,932,691,150 14,552,212,339
17,139,645,956 16,245,480,992
III. Term loan (CL-4)
Small & Medium Enterprise Finance 11,444,852,834 12,587,488,418
Consumer Finance (including staff, other than HF) 5,833,239,165 6,755,696,362
Housing Finance (HF) 7,460,821,292 3,055,396,390
Loans for Professional Set-up Business 698,664 38,121
Others 116,866,463,146 102,225,170,518
141,606,075,101 124,623,789,809
IV. Short term agri credit and microcredit (CL-5)
Short Term Agri Credit 10,528,093,531 9,310,818,268
Micro Credit 1,210,210,795 1,127,509,060
11,738,304,326 10,438,327,328

B. Outside Bangladesh (Loans, cash credits, overdrafts etc.) 37,263,823 27,965,167

Total Loans & Advances (Inside & Outside Bangladesh) (A+B) 244,801,833,138 235,085,714,197

7.8 Movement of classified loans and advances/investments

Opening balance 39,659,457,995 35,799,263,000


Addition during the year 17,672,544,363 16,055,994,995
Reduction during the year (10,927,900,000) (12,195,800,000)
46,404,102,358 39,659,457,995
7.9 Particulars of Loans and Advances:
Loans considered good in respect of which of the banking company is fully
223,137,649,595 205,961,858,788
secured
Loans considered good against which the banking company holds no
11,044,940,805 15,793,257,991
security other than the debtor’s personal guarantee
Loans considered good secured by the personal undertakings of one or
10,619,242,738 13,330,597,418
more parties in addition to the personal guarantee of the debtors
Loans adversely classified; for which no provision is created - -
244,801,833,138 235,085,714,197
Loans due by directors or officers of the banking company or any of them
18,273,197,364 16,297,172,194
either separately or jointly with any other persons
Loans due from companies or firms in which the directors of the banking
company have interests as directors, partners or managing agents or in case - -
of private companies as members
Maximum total amount of advances including temporary advance made at
any time during the year to directors or managers or officers of the banking 18,273,197,364 16,297,172,194
companies or any of them either separately or jointly with any other person
Maximum total amount of advances including temporary advances granted
during the year to the companies or firms in which the directors of the
- -
banking company have interests as directors, partners or managing agents
or in the case of private companies as members
Due from bank companies - -
Amount of classified loan on which interest has not been charged,
mentioned as follows:
(Decrease) / increase in provision - -
Amount of loan written off - -
Amount realized against loan previously written off 401,259,463 377,036,387
Amount of provision kept against loan classified as ‘bad/loss’ on the date of
21,476,607,778 18,157,034,654
preparing the balance sheet
Interest creditable to the Interest Suspense A/c - -
Cumulative amount of the written off loan 53,543,800,000 51,407,900,000
Amount written off during the current period 2,135,900,000 1,294,800,000
Amount of written off loan for which lawsuit has been filed 53,543,800,000 51,407,900,000

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Taka Taka
7.11 Bills purchased and discounted:
In Bangladesh 2,347,599,591 937,654,983
Outside Bangladesh 2,351,010,872 4,518,757,358
4,698,610,463 5,456,412,341
7.12 Maturity grouping of bills purchased and discounted:
Payable within 1 month 4,698,610,463 5,456,412,341
Over 1 month but less than 3 months - -
Over 3 months but less than 6 months - -
6 months or more - -
4,698,610,463 5,456,412,341
7.13 Net Loans and advances:
Carrying amount 244,801,833,138 235,085,714,197
Less: Interest suspense and penal interest 9,744,826,387 7,663,369,905
Provision for loans & advances (Note-7.13a) 27,214,097,175 22,754,555,703
36,958,923,562 30,417,925,608
Net loans and advances