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[2.1] HISTORICAL BACKGROUND OF AGRANI BANK LTD: Agrani Bank is a state-owned commercial bank of Bangladesh established in 1972. Its headquarter is situated at Motijheel in Dhaka, Bangladesh. Agrani Bank Limited, a leading commercial bank with 867 outlets strategically located in almost all the commercial areas throughout Bangladesh, overseas Exchange Houses and hundreds of overseas Correspondents, came into being as a Public Limited Company on May 17, 2007 with a view to take over the business, assets, liabilities, rights and obligations of the Agrani Bank which emerged as a nationalized commercial bank in 1972 immediately after the emergence of Bangladesh as an independent state. Agrani Bank Limited on behalf of the government, former Agrani Bank and the Board of Directors of Agrani Bank Limited on November 15, 2007 with retrospective effect from 01 July, 2007. It started functioning as nationalized commercial bank taking over assets and liabilities of the erstwhile Habib Bank Limited and commerce Bank ltd in the East Pakistan. The authorized capital of the Bank is Tk. 800 core. At the start of its operation in 1972, Agrani Bank had 246 branches, of which 37 were temporarily closed. It had a total deposit of Tk 581 million, advances of Tk 663.40 million and borrowing of Tk 294.80 million. Initially, it did not have any liquid asset to run its operations smoothly and to undertake development activities. Investment amounting to Tk 110 million was in unapproved securities. On 30 June 2000, the total deposit at the bank stood at Tk 92.96 billion, total loans and advances at Tk 74.92 billion, total investment at Tk 25.375 billion, total assets at Tk 124.798 billion and reserve funds at Tk 319 million. Of the total deposits, 8.03%, 35.41%, 19.21% and 37.35% were in current, savings, fixed and other deposits respectively. 4.24% of the total amount of loans and advances were classified. The credit-deposit ratio of the bank was 80.60%. The bank had borrowed Tk 630 million from the inter-bank call market and the total value of its liquid assets was Tk 36.160 billion. In September 1999, the interest rate offered by the bank on savings deposits in both rural and urban areas was 7.50%, while the average interest rate charged by it on lending in different sectors was 13.29%. Public sectors' borrowing from the bank was Tk 12 billion (16% of the bank's total loans and advances); about 44%

of these loans were classified. The bank also provided micro-credit. Up to June 2000, the disbursement of micro-credit amounted to Tk 4.615 billion. In addition to traditional deposit taking in various accounts and providing loans to almost all sectors of the economy, the bank offers many other services through its schemes of school banking, inland travelers cheques, pension funds, industrial development bond and inland remittance. The bank operates some income generating and economic development projects such as the Productive Employment Project, Netrokona Integrated Agri-product and Water Management Project, IFAD Project for POVERTY Alleviation through Employment Creation, Kurigram Poverty Alleviation Project, Crop Intensification Project, National Micro Irrigation Development Project, Micro Entrepreneurship Development Project, and Agricultural Diversification and Intensification Project. The bank participates actively in foreign exchange business including overseas remittance services. The total volume of foreign exchange business handled by the bank in servicing imports and exports and remittances during 1999-2000 amounted to Tk 55.345 billion compared to only Tk 310 million in 1972-73. At present, the bank has correspondent relationship with 903 foreign banks/bank offices throughout the world. Agrani Bank monitors its operations through a performance budget. It has a marketing intelligence unit. It conducts a programme of human resources development through training and motivation and has adopted some important policy measures, including introduction of Lending Risk Analysis, suggested by the Financial Sector Reform Programme. The business policies of the bank in 1990s included fulfilling capital adequacy requirements, mobilizing large amount of deposits, and making investment of assets in more profitable ways. The bank has diverted its activity toward off-balance sheet items during the last decade as a part of its strategy to increase its area of operation and non-interest based income.

2.2 Vision
To become a leading bank of Bangladesh operating at international level of efficiency, quality and customer service .

2.3 Mission
We operate ethically and fairly within the stringent framework set by our regulators. We fuse ideas and lessons from best practice to explore new avenues to become stronger, more efficient and competitive. We apply information and communication technology For the benefit of our customers and employees. We invest to strengthen the future of the Bank.

2.4 Motto
To adopt and adapt to modern approaches to stand supreme in the banking arena of Bangladesh.

2.5 Values
We value in integrity, transparency, accountability and professionalism to provide a high standard of service to all our customers and stakeholders.

2.6 Strategic Objectives

1. Winning at least 6 percent share of deposits and 4.5 percent share of loans and advances Of Bangladeshi market. 2. Gaining competitive advantages by lowering overall cost compared to that of competitors. 3. Overtaking competitors by providing quality Customer service. 4. Achieving technological leadership among the peer group. 5. Strengthening the Banks brand recognition. 6. Contributing towards the economic well-being of the country by focusing particularly on SME and agricultural sectors. 7. Strengthening research capability for innovative products.

2.6 Ethical Standards

1. Be Trustful: We believe in mutual trust and treat our customers in a way so that they can trust us. 2. Keep an Open Mind: For continuous improvement of our Bank we keep our minds open to new ideas. We seek opinions and feedback from both customers and team members through which our Bank will continue to grow.
3. Meet Obligations: Regardless of the circumstances, we do everything to gain the trust and confidence of customers and clients by honoring our commitments and obligations. 4. Be Transparent: We are transparent in our dealings with customers and all stakeholders. We ensure transparency by furnishing information through print & electronic media as well as in Banks website, journals and reports 5. Be involved with the Community: We remain involved in community-related issues and activities, thereby demonstrating that our business is socially responsible. 6. Be Respectful: We treat all stakeholders with utmost respect and courtesy regardless of differences, positions, titles, ages, or other types of distinctions.

7. Be Environment conscious: We provide industrial financing decorously to keep the environment free from pollution and health hazard. We also ensure setting up ETP before installation of industries that may affect the environment.


AS ON 31.12.2010
Name of the Company Chairman Managing Director & CEO Company Secretary Legal Status Genesis Agrani Bank Limited Khondoker Bazlul Hoque, PhD Syed Abdul Hamid, Chartered Accountant Md. Ekramul Hakim Public Limited Company Agrani Bank Limited has been incorporated on 17 May 2007 and taken over the business, assets, liabilities, rights and obligations of Agrani Bank with effect from 1 July 2007. Agrani Bank which initially emerged as a Nationalized Commercial Bank (NCB) in 1972, following The Bangladesh Banks Nationalization Order, 1972 (President's Order No. 26 of 1972) has now become a State Owned Commercial Bank (SCB) through a vendor's agreement dated 15 November 2007.

Date of Incorporation Registered Office Authorized Capital Paid up Capital Reserve & Retained Earnings Credit Rating by CRISL

17 May 2007 9 D Dilkusha Commercial Area, Dhaka 1000 Bangladesh Tk. 800.00 Core Tk. 546.52 Core Tk. 1025.20 Core Particulars Surveillance Rating 2009 (As Government Supported Entity) Surveillance Rating 2009 (As State Owned Commercial Bank) Surveillance Rating 2008 (As State Owned Commercial Bank) Outlook Date of Rating Declaration Long Term AAA A AShort Term ST-1 ST-2 ST-2 Positive 06-09-2010

Number of Employees


Number of Branches Number of Subsidiary Companies Phone-PABX Fax SWIFT at HO. ID. Website E-mail

867 04 +88-02-9566153-54, +88-02-9566160-69, +88-02-9566074-75 +88-02-9562346, +88-02-9563662+88-02-9563658, AGBKBDDH

[2.8] BOARD OF DIRECTORS: Agrani Bank Limited is governed by a Board of Directors consisting of 13 (thirteen) members headed by a Chairman. The Bank is headed by the Managing Director & Chief Executive Officer; Managing Director is assisted by Deputy Managing Directors and General Managers
AS ON 31.12.2010

Chairman Khondoker Bazlul Hoque, PhD Professor Department of International Business University of Dhaka Directors Ranjit Kumar Chakraborty Additional Secretary, Finance Division, Ministry of Finance Government of the Peoples Republic of Bangladesh Shekhar Dutta Secretary Moni Singh-Farhad Memorial Trust Nagibul Islam Dipu Managing Director Polac Real Estate Limited Engineer Md. Abdus Sabur Engineer and Industrialist Barrister Zakir Ahammad Chairman Indepth News of Bangladesh (INB) Shahjada Mohiuddin Proprietor M/S Arshi Enterprise Abduz Jahir Chowdhury (Sufian) Social Worker K.M.N. Manjurul Hoque Lablu Chief Editor & Managing Director Global News Agency A.K. Gulam Kibria, FCA Senior Partner G.Kibria & Co., Chartered Accountants Luna Shamsuddoha Chairman Dohatech New Media Syed Bazlul Karim, BPM Rtd. AIG and Co-operative Leader Syed Abdul Hamid, Chartered Accountant Managing Director & CEO Company Secretary Md. Ekramul Hakim


Its a Public Limited Company on May 17, 2007 with a view to take over the business, assets, liabilities, rights and obligations of the Agrani Bank which emerged as a nationalized commercial bank in 1972 immediately after the emergence of Bangladesh as an independent state. Agrani Bank Limited started functioning as a going concern basis through a Vendors Agreement signed between the ministry of finance, Government of the People's Republic of Bangladesh on behalf of the former Agrani Bank and the Board of Directors of Agrani Bank Limited on November 15, 2007 with retrospective effect from 01 July, 2007 [2.10] FINANCIAL PERFORMANCE: Total Operating Income The Banks total operating income stood at Tk. 1,693 crore in 2010 as against Tk. 1028 crore in 2009 which indicates an increase of Tk. 665 crore (i.e. 65 percent higher) over the last year.

Year Profits 4,493,889,607 3,013,327,506 2,349,543,923 Profits Year 2009 2010 2,349,543,923 3,013,327,506 4,493,889,607


Source: Annual report 2010 Total Operating Expenditure The Banks total operating expenditure stood at Tk. 607 crore in 2010 as against Tk. 384 crore in 2009 which indicates an increase of Tk. 223 crore (i.e. 58 percent higher) over the last year. This is mainly due to the increase of staff salary in line with the govt. policy and new recruitment of officers.

Net Interest Income The Banks net interest income is Tk. 691 crore in 2010. Interest earned from loan and profit earned from investment remained the principal component of interest income. However, interest cost of deposits was the main component of interest expenses.

Operating Profit During 2010, the Banks total operating profit before amortization, provision and tax stood at Tk. 1086 as against that of Tk. 644 crore in 2009. The Bank earned an operating profit of Tk. 953 crore before charging any provision and taxes during the year 2010 as against an operating profit of Tk. 511 crore in the previous year which indicates that the Bank has increased its profitability significantly during the year under review compared to the prior year. Income tax amounting to TK. 289 crore was charged against profit during the year 2010. Thus a net profit (after provisions and taxes) during the year 2010 stood at Tk. 352 crore as against a net profit of Tk. 135 crore in the previous year

Capital Adequacy Ratio As per the provisions of Section 13(2) of the Bank Companies Act 1991 and BRPD circulars 01, 10, 05 and 11 dated 08 January 1996, 24 November 2002, 14 May 2007 and 14 August 2008 respectively issued by Bangladesh Bank, adequate capital needs to be maintained by all commercial banks to operate the Banking activities smoothly. The Bank maintained core capital of Tk. 1162.72 crore as against required Tk. 869.65 crore and total actual capital of Tk. 1,778.39 crore as against required Tk. 1,739.30 crore


Appropriation of Profit During the year 2010 the Bank earned Tk. 1086 crore before provision and tax which has been appropriated in the following manner.


2009(amount in crore)

2010(amount in crore)

Profit/(Loss) before provision & tax Provision for loans and advances Other provision (Including Incentive Bonus) Total provision Net profit/(loss) before Tax

953.25 89.22 223.31 312.53 640.72

511.49 90.95 94.78 185.73 325.76

Provision for tax

Current tax Deferred tax Total provision for tax Net profit/(loss) after tax Add: Retained surplus from the previous year Available for Appropriation

206.86 82.18 289.04 351.68 275.54 627.22

170.00 20.21 190.22 135.55 479.35 614.90

Appropriation of Profit

Statutory Reserve Bonus Share Issue Retained surplus

128.14 49.68 449.39

65.15 248.42 301.33

Source: Annual Repot 2010


[2.11]THE SERVICES AND PRODUCTS OF AGRANI BANK LTD: 1. 2. 3. 4. 5. 6. 7. 8. Personal Corporate Business Agri &Rural SME Merchant NRB Islami

1. Personal Banking Personal banking products are Deposit, Loan and Card services offered by ABL. Deposit services are Savings bank account, fixed deposit receipt, Pension sanchay scheme. These schemes enhance small savings of limited income people to be accumulated. Loan products at personal level are Home loan, Consumer loan, and Advance against salary. These programs help to achieve your dreams just in time and at a minimum effort. Agrani Bank presents Debit card for the clients sharing a network with other four renowned banks of the country. Fees for the card are nominal. You may have a debit card from ABL and enjoy a life free from any tension of carrying cash. 2. Corporate Banking Agrani Bank provides deposit services like Current account and fixed deposit for its corporate clients. On the other hand it arranges funds through syndication of banks for big, corporate projects. Thus the bank is contributing to uplift the national economy to a higher level. 3. Business support With a view to building up a fund of Tk. 500 crore for financing industrial projects, ABL introduced Agrani Bank Shilpa Unnayan Bond in 1999. There are two types of bonds, 5 and 7 years. The lowest denomination is Tk. 50,000 and highest one is of Tk. 500,000. Interest rate is good enough to attract people.


Major credit Schemes for business people are Industrial Credit, Trade Finance, Import Finance and Export Finance. If you are a deserving candidate for any of them, or you need any documentary support from Agrani Bank, you may pay a visit to any branch of ABL. 4. Agri & Rural Banking Now bottom line farmers may have a bank account depositing Tk.10 only. Agrani Bank provides this service to rural Bangladesh. Young generation intending to go abroad for jobs may have loan for their air tickets and other expenses against nominal securities. 5. SME Banking Small and medium enterprise of the country is one of the deserving sectors for financial support. Agrani Bank justifiably provides credit to them under different schemes. ABL launched a joint venture program named Small Enterprise Development Program (SEDP) with NORAD, a Norwegian agency in 1995. This program was implemented in greater Mymensingh and Faridpur districts. The target fields were rice mill, oil mill, and nursery, repairing shops, fishery, weaving and many more. 6. Banking for NRBs Nonresident Bangladeshis now get banking facility through Agrani Bank. They may have an account in taka; they may invest in Dollar Bonds. They are also allowed to have an F/C account. If you are one of them you can avail these opportunities. Your nominees are also entitled for these scopes. 7. Merchant Banking The merchant banking unit of Agrani Bank was turned into a subsidiary entity in 2009 and named as Agrani Equity & Investment Limited. This unit serves Issue management, Underwriting and Portfolio management functions. 8. Islamic Banking Among the nationalized banks Agrani was the first to introduce Islami Banking service. Agrani Bank provides completely interest free Shariah based banking to the clients. Deposit services offer interest free profit in compliance with Shariah. If you desire to get Islami banking service you are welcome at its Islami banking unit in its H/Q.


[2.12]BRANCH NETWORK: The bank has 11 Circle offices, 25 Divisions in head office, 54 zonal offices and 876 branches including 27 corporate and 40 AD (authorized dealer) branches. The branches of the Bank cover all the important trading and commercial centers in Bangladesh. As of date, it has 876 branches within Bangladesh. Most of the branches are equipped with computers in addition to modern facilities, logistics and professionally competent manpower. [2.13] ABOUT ELEPHANT ROAD BRANCH: Elephant Road Branch of Agrani Bank Limited is located at Elephant Road, Dhanmondi, Dhaka. This branch is a project branch of Agrani Bank. The main purpose of Elephant Road Branch is to provide banking services to the employees of Elephant Road of Bangladesh. Actually, this branch is located in the Elephant Road Boundary. Agrani Bank rented the place to run its operation. Elephant Road Branch started its journey at 25 June 1986. At present, this branch provides banking services not only to the employees of Elephant Road but also to other general public. For example, employees of various organizations get banking services from this branch. Assistant General Manager (AGM) (Acting Branch Manager)

Principal Officer

Senior Officer


Clerk /casher

Massinger /peon

Figure: Management hierarchy of Elephant Road Branch 14

Elephant Road Branch has seven departments to provide banking services. These departments are

Elephant Road Branch Of Agrani Bank

Loans & Advances Department

General Banking Department

Cash Department

Clearing Department

Remittance Department

Computer Department

Foreign Remittance

Local Remittance (TT, DD, PO)

Figure: Different department of Elephant Road Branch

There are 15 employees working in the Elephant Road Branch. The Branch Manager looks after the functions of seven departments. Two employees are mainly responsible for General Banking department. Loans & Advance department, Bills department, clearing department, Foreign Remittance department and Cash department have one employee for each. There is a Computer Operator who is responsible for posting the entries in the computer. The Branch has two peons as well.