2017

Products and Services

of Agrani Bank Limited

19-Aug-17
 Principles of Banking and Insurance
Course Code: Fin-3337
Section: F

Submitted To
Sanjana Hoque
Lecturer, UIU

Submitted By
Name ID Serial no:
Nurunnessa 111 131 066 06
Md. Moin Khan 111 151 568 36
Tasnuva Sayeed 111 151 445 33
Sanjida Nasrin Lima 111 151 009 28
Fatema Akter 111 121 166 2
Pialy saha 111 131 067 7
Swaraj Debnath 111 151 575 37

August 18th 2017

1
 Letter of Transmittal

18thAugust, 2017

Sanjana Hoque

Lecturer

School of Business and Economics

United International University

Subject: Submission of the report on Products and Services of Agrani Bank Limited

Dear Madam,

We would like the pleasure to present this report on “Products & Services of Agrani Bank
Limited” that our group has developed for your course, “Fin-3337”. We have worked hard to
collect information and tried our best to make this report as effective and beneficial as
possible. The report contains all the things that you wanted us to know about. Working on
this report has been really interesting and informative experience for us, which we believe
will be supportive to our academic and professional career in the future.

Since this report is our first endeavor on this topic, inspire of our best effort there may be
lacking a fault, we will be ready to accept any suggestion at any aspect of this report.

We have a great interest on this report and we will be highly motivated if this report meets
your desired expectation and we are always being ready to reply all inquiries that you may
have regarding this report.

Thanks and Regards.

Sincerely yours,

-----------------------------------------
Md. Moin Khan

(On behalf the group)

2
Acknowledgement
We are really thankful to Ms. Sanjana Hoque, Lecturer, School of Business and Economics,
United International University for the freedom she gave us in choosing the organization for
our report and her continuous guidance henceforth. Her guidance has been of extreme help to
us. We are also thankful for all the times, we consulted her and she answered with the utmost
patience and perseverance. Practical knowledge is fundamental for the application of
theoretical intelligence. So, his guidelines for the report made it mandatory for us to seek
learning from an organization, which proved to be very gratifying. We cordially thank the
honorable course teacher to provide us the opportunity to apply classroom learning in
practice. There are always some differences between theories and practice. This report
bridges the gap between them.

3
Executive Summary
This report provides an analysis and evaluation of the products and services of Agrani Bank
Limited. The main purpose of this report is to perceive the products and services of a bank.
Methods of analysis include observation of the website and some publications of Agrani
Bank Limited about the products and services. The report mainly contains the overview of
Agrani Bank, products and services of Agrani Bank, some financial analysis and last of all a
SWOT analysis of Agrani Bank. All the samples of the data provided in this report can be
found in the appendix.

4
 Table of Content

Serial Page
Chapter Names Contribution Marks
Number Number
CHAPTER-1

Company Overview 7-11

1 111 131 067
1.1 General Description of Business 7-8
1.2 Mission, Vision and Objective of the Company 8-9
1.3 Organogram 9-12

CHAPTER-2

Product & Services 14-28

2.1 General banking 14
2.2 Business 14-17
2.3 Agri & rural banking 17-18
2.4 SME (Small and Medium Enterprise) 18-22 111 151 575
2 &
2.5 Merchant Banking 22-23
111 121 166
2.6 Islamic Banking 23-25
2.7 Treasury 25-26
2.8 Investor relation 26
2.9 Technical & other online service 26-27
2.10 Credit services 28

CHAPTER-2 111 151 568

3 Financial Statement 30-33 &
111 131 066
Chapter-4 111 151 445
4 Swot Analysis 34-39 &
111 151 009
Chapter-5
5 111 151 568
Conclusion 40
6 Reference 41 111 151 568

5
CHAPTER-1

Company Overview

1.1 General Description of Business

1.2 Mission, Vision and Objective of the Company
1.3 Organogram

6
1.1 General Description of Business

Agrani Bank Limited

Agrani Bank Limited, a leading commercial bank with 935 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. The Bank has, however, two wholly-
owned subsidiary companies named Agrani Exchange House Private Limited in Singapore
and Agrani Remittance House SDN, BHD in Kuala Lumpur, Malaysia. The authorized
capital of the Bank is Tk 8 billion.

Establishment

Agrani Bank Limited was established on 26 March 1972 by combining two abandoned
Pakistani banks Commerce Bank and Habib Bank. The Bank is fully owned by the
Government of Bangladesh. 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.

Location
The location of the organization plays a significant role in how the organization is
performing. Before setting a location for, the organization should keep some important
things in mind, especially the accessibility of the location, the target market, transportation
facility, business prospectus etc.

7
In case of the Agrani Bank Limited., the Head Office is located in Motijheel commercial
area. This is a very suitable place for business, has good transportation facility. The area is
business oriented so it is possible to capture the target market. Lots of Industries &
organization are located in that commercial area, so it is not too hard to attract clients.

Branch Network
Agrani Bank Limited has 935 existing branches and some other proposed branch all over the
Bangladesh to provide better service to their valuable customers. The bank has 11 Circle
offices, 34 Divisions in head office, 62 zonal offices and 921 branches including 27 corporate
and 40 authorized dealer branches.

1.2 Vision, Mission and Objectives of Agrani Bank

Vision of Agrani Bank

 To become a leading bank of Bangladesh
 To Operate at international levels of efficiency,
 To provide Quality and customer service.

8
Mission Statement
Fusing ideas and lessons from best practice to explore new avenues to stay stronger and more
efficient and competitive as well as applying information and communication technology for
the benefit of customers and employees.

Values of Agrani Bank

Agrani Bank believes in integrity, transparency and accountability, and also

valueprofessionalism that will provide a high standard of service to all customers and
stakeholders.

Motto of Agrani Bank

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

Objectives of Agrani Bank

Agrani Bank, as a nationalized commercial bank, has the objective of serving the nation. A
few of the main objectives are:

 To assist the government in development activities by providing finance.

 To provide banking service by collecting deposit from people at all state of life and
investing it in productive sector.
 To provide advance in agriculture and industrial sector on preferential basis along
with finance in general business and trade as well as provide active assistance in
development of the economy of the country through foreign trade transaction,
expansion, proper administration.
 To expand banking service in rural areas and creation of banking habit among the
people.
 Human resource development through training programmed,
Increase loan portfolio diversification and widen the coverage of area of operation.

9
1.3 Organogram of Agrani Bank
Agrani Bank is governed by a Board of Directors consisting of 12 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.

Hierarchy of Agrani Bank

10
Board of Directors:
 Chairman Siddiqur Rahman Choudhury Former Secretary, Ministry of Finance
, Government of the People‟s Republic of Bangladesh
 Directors AKM Shamsuddin Former Secretary Ministry of Primary and Mass
Education Govermment of the People ‟s Republic of Bangladesh.
 Privatization Commission and Secretary Nasiruddin Ahmed Member,
 Joint Secretary Ranjit Kumar Chakraborty, Finance Division Ministry of
finance and project Director Financial Management reform Programme (FMRP)
 Director of Training Armed Forces Division. Air cadre Syed Imtiaz Hussain
 Former Joint Secretary Captain Jamilur Rahman Khan (Retd.)
 Secretary Cabinet Division Muhammad Aftab Uddin Khin
 Former Additional Managing Director (additional charge ) Syed Abdul
Hamid
 Company Secretary Md. Khalilur Rahaman Deputy General Manager.

Divisions of Agrani Bank Limited

Bank Divisions Name

Branch & Subsidiaries / Unit Control Division
Company Affairs & Board Division
Credit Policy & Credit Risk Management Division
Establishment & Engineering Division
HR Discipline, Grievances & Appeal Division
HR Planning, Deployment & Operations Division(HR)
HR Planning, Deployment & Operations Division(PD)
HR Training, Research & Development Division
Industrial Credit Division -1
Industrial Credit Division -2
Information Technology & MIS Division(IT)
Information Technology & MIS Division(MIS)
Planning, Co-Ordination & Marketing Division
Procurement & Common Services Division(Printing)

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Procurement & Common Services Division(Common)
Recovery and NPA Management Division(Recovery)
Recovery and NPA Management Division(Loan Classification)
Rural Credit Division
SME Credit Division
Treasury Division
Vigilance Division
Islami Banking Unit
International Trade & Foreign Currency Management Division
Foreign Remittance Division
Card Division
Law Division
Central Accounts Division
Reconciliation Division
Public Relation Division
Risk Management Division
Sustainable Finance Division
Audit & Inspection Division 1
Audit & Inspection Division 2
Audit Monitoring Division
Audit Compliance Division (Internal)
Audit Compliance Division (External)

12
 Chapter-2
13
2.1 Product & Services

Agrani Bank Limited is one of the leading banks in Bangladesh. Among the government
banks they have succeed to maintain their reputation for high quality of their product and
variation of their services. Agrani Bank Limited divided their product and services into some
ways for easy maintaining of their product and services. This strategy helps Agrani Bank
Limited to enhance their product and service‟s quality. They divided the product and services
into ten basic sectors, such as:

O General banking
O Business
O Agri & rural banking
O SME (Small and Medium Enterprise)
O NRB (Non Resident Bank)
O Merchant Banking
O Islamic Banking
O Treasury
O Investor relation
O Technical & other online service

A brief discussion of these sectors and product and services provided under theses sectors
are described below:

2.2 General banking services

General banking services involve collection of different deposits through current account,
savings account, fixed deposit account etc., and to issue and pay demand draft, pay order,
telegraphic transfer, mail transfer and transfer of other fund it also includes cash operation,
clearing house activities, collection and discounting of bills and checks, maintaining accounts
with Bangladesh Bank and other concerned banks as well as other various activities. (ABL)
operate their general Banking consists with the management of deposit, cash, clearing house,
bills, account opening, security instruments handling, customer services, locker facilities and
other ancillary services of the bank besides Advance and Foreign Trade.

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 Current Account:

A current account is a running and active account. One can involve in transactions as many
times as needed during banking hour. There is no restriction on deposits and withdrawals of
the amount from a current account. This is a non-interest bearing account i.e. no interest is
given on the deposit amount but bank imposes a nominal amount as bank charge on current
account. .

 Saving Account:

People with fixed income usually prefer savings account. This account provides them an
opportunity to save a portion of their current income and entitle to get interest that can be
used to meet future contingencies. Any citizen can open savings account in Agrani Bank by
depositing Tk. 100. This is an interest bearing account and Agrani Bank provides 4% interest,
based on the balance interest may be paid monthly or annual or other time intervals, which is
higher than short-term deposits but lower than fixed deposits posits account. Bank imposes
certain restrictions on the numbers and amount of with withdrawals from a savings account.
An advance notice of seven days is needed

(i) To withdraw money more than twice in a week or

(ii) To withdraw money more than 25% of balance amount, otherwise the
account holder will not be entitled to any interest of that particular month.
Value Added Tax (VAT) is imposed @ 15% on interest earned amount.
Guardian of minor can open a savings account on behalf of the minor.

 Time Deposit:

The deposits that are held by bank and financial institution for fixed period plus other
deposits that can be withdrawn by notice only. From the above definition we get two types of
time deposit

I. Deposit kept with bank or other financial institution for a fixed period (e.g.
fixed deposits)

15
 II. Other deposits that can be withdrawn by notice only (e.g. special time
deposits).

 Fixed Deposits:

Deposit kept for a fixed period with a bank is called fixed deposit. It is kept in bank once in
account. Generally big amount of money is kept in this account. Period of deposit varies from
3 months to 60 months. Advance can be taken against fixed deposit, one can withdraw the
amount of fixed deposit before the maturity of period but the person will be entitled the
previous ceiling interest. However, one has to deposit the amount for a period of minimum 3
months to become eligible for interest. The interest rates of fixed deposits are as follows:

O 3 months & above but less than 6 months 7.50

O 6 months & above but less than 1 year 8.00
O 1 year & above 8.5

 Special Notice Time Deposit:

Generally different types of organizations, institutions like government; autonomous, semi-

autonomous organizations maintain this type of account. A notice is to be served before 7
days of withdrawal. Notice amount will be excluded from interest consideration. Present
interest rate is 3.5%.
Agrani Bank strives to provide customer services in better way. Agrani Bank has the
following arrangement of remittance within and outside the country.
i. Demand draft
ii. Pay order
iii Telegraphic transfer

 Demand Draft (DP)

A demand draft is an unconditional order of the bankers on branch to another to pay to
some person or order the amount maintained there in on demand.

 Pay Order (P.O):

A pay order is a written order, issued by a branch of bank, to pay a certain sum of money

16
 to a specific person or a bank .It may be said as to be a banker‟s cheque as it is issued by
a bank and. payable by itself.

 Telegraphic Transfer (T.T)

A telegraphic Transfer is a method of remittance, which is effected by the banker through

a coded telegram attested by secret check signal, on receipt if which, the paying office
pay the amount to the payee by crediting his account.

2.3 Business

Business is a major portion for an economy of a country. Which country is more advance in
business sector it refers that country‟s economy also so strong. As a result (ABL) decided to
give many opportunity and facilities to business sector. They mainly give four kinds of
services to business sector, such as:

i. Account and deposit

ii. Trade Finance
iii. Import Finance
iv. Export Finance

Again all of these categories contain sub categories. Here bellow have explained all of the
categories.

(i)Account & deposit:

Current account:

As like mentioned earlier that (ABL) is always conscious about business sector. They can
realized that keep up liquidity is mandatory but it is also problem to move with cash. As a

17
result they provide current account to its business client. Current account means which pays
little or no interest but client can withdraw his or her money when he or she wants.

(ii)Trade Finance:

(ABL) helps in trade by giving suggestion or providing loan .

(iii)Import Finance:

(LIM) Loan against merchandise:

This type of finance is offered to the importer to finance their needs for meeting the cost
including freight, insurance, and customs and excise duty payable on the imported
merchandise. The lending bank mostly pledges the imported goods.

(LTR) Loan against trust recipt:

This is a loan against a Trust Receipt provided to the client when the documents covering an
import shipment are given without payment. (ABL) provides LTR to manage
immediateliquidity of importer.

Payment against document (PAD):

This is a Short Time Loan provided to the importer for delivery the shipping documents in
order to release imported goods.

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2.4 Small Medium Enterprise (SME)

By the direction of Bangladesh bank (ABL) provides SME services to encourage small and
medium entrepreneur.

Criteria of SME in (ABL)

Medium Industry/Enterprise (ME): Medium Industry/Enterprise refers to the firm/business

which is ideally not a public limited company and complies with the following criteria:

Either/or
Serial
Sector
no Value of Fixed asset other than Land and building Employed
including replacement cost Manpower

1 Service TK.1.00 crore- TK.15.00 crore 50-100

2 Business TK.1.00 crore- TK.15.00 crore 11-50

3 Industrial TK.10.00 crore- TK.30.00 crore 100-250

Small Industry/Enterprise (SE): Small Industry/Enterprise refers to the firm/business which

is ideally not a public limited company and complies with the following criteria:

Either/or
Serial
Sector
no Value of Fixed asset other than Land and building Employed
including replacement cost Manpower

1 Service TK.5.00 lac-TK.1.00 crore 10-49

2 Business TK.5.00 lac-TK.1.00 crore 6-10

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3 Industrial TK.50.00 lac-TK.10.00 crore 25-99

Micro Industry/Enterprise (MIE): Micro Industry/Enterprise refers to the firm/business

which is ideally not a public limited company and complies with the following criteria:

Either/or
Serial
Sector
no Value of Fixed asset other than Land and building Employed
including replacement cost Manpower

1 Service Less than TK.5.00 lac Less than 10

2 Business Less than TK.5.00 lac 5 or Less than 5

3 Industrial TK.5.00- TK.50.00 lac 10-24 or less

Three sectors in SME financing:

 Service sectors: Hotel, restaurant, tailoring, laundry, hospital, clinic,

kindergarten, block and printing, tractor, power tiller, irrigation equipment etc.

 Business sectors: Grocery shop, cloths shop, medicinal shop, plastic and
synthetic shop, shop of spare parts, rods and cement, furniture, agro-business
and other income generating and socially acceptable business.

 Industrial sectors: Cotton industry, jute industry, garments, rice mill, plastic
industry, saw mill, light engineering, agro processing, feed mill, furniture
industry and other socially acceptable and eco-friendly business.

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SME Products and Programs

Nari Agrani:

Nari Agrani is a special credit program for the women. It is a recent and popular credit
program of Agrani Bank Limited. It is introduced in 2010 under SME financing with a view
to bring the women in the mainstream development activities. Under this program, an eligible
woman can avail the SME credit with only 9% interest per annum and 75:25 debt equity
participations. No collateral is required up to Tk.1.00 million (10.00 lacks) and one can get
the maximum loan amount of Tk.10.00 million (1.00 crore) with necessary collaterals. The
activities of the program are extended in all the branches of Agrani Bank Limited.

DABIK:

Daridra Bimochon Karmasuchi (DABIK) is a credit program mainly for the hard core people.
A person who has up to 0.50 acres of land including homestead can avail the loan facility. A
wide range of rural activities are involved in this program. The main objectives are micro
enterprises development, income generation, employment creation and poverty alleviation.
An individual or a five member group can avail the loan. It is a small and collateral free loan.
The maximum loan limit is Tk.10000 to an individual level. The rate of interest is only 9%
per annum. The activities of this program are extended in all the branches of Agrani Bank
Limited.

SBETPCS:

Solar Energy, Bio-gas and Effluent Treatment Plant Credit Scheme (SBETPCS) is a green
credit scheme of Agrani Bank Limited. Under the scheme the entrepreneurs can enjoy the
credit facilities to establish solar panel, bio-gas plant and effluent treatment plant. The credits
are disbursed directly or through NGO linkage program. The rate of interest of this credit is
9%. The activities of the scheme are extended in all over the country.

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LDP:

Loan for the Disabled Persons (LDP) has introduced for the disabled persons with a view to
bring them into the mainstream development activities of the country. A man who is
physically disabled but mentally sound can avail the loan under the program. A disabled
person individually or jointly with his competent family member can avail the loan. The
maximum loan ceiling is Tk.25,000 for the first time and Tk.50,000 for the second time. The
rate of interest is only 9% per annum. It is a collateral free loan program and its activities are
extended in all the branches of the bank.

SMESTCP:

SME Small Transport Credit Program (SMESTCP) is designed for income generation,
employment creation and the development of the rural transport system. An eligible person or
a 2-3 member group can avail the loan facilities to purchase an eco-friendly small transport
under this program. The maximum loan ceiling is Tk.3,00,000 and rate of interest is only 9%
per annum. It is a collateral free loan up to a certain limit

EGPRP:

Employment Generation Project for the Rural Poor (EGPRP) is a foreign aided (IFAD aided)
credit program. It is under taken in 1995 under IAFAD Loan No.378 BD. It is introduced
mainly for nationwide small enterprises development, poverty reduction and employment
generation. Under the program, countrywide 190 designated branches of Agrani Bank
Limited are involved in disbursing the credits to the target people. As a retailer, an eligible
NGO can avail a bulk loan for on-lending to the people. The loan size at individual level is
Tk.20,000 to Tk.5,00,000 and no collateral is required up to Tk.75,000. The rate of interest of
this credit is 10% per annum.

2.5 Merchant Banking

(ABL) also handle merchant banking policy. In this service they mostly focus on
international finance, business loan for companies and underwriting. They also maintain issue
management and portfolio management. Sometime (ABL) provides suggest and strategy to
establish international business.

22
Issue management:

(ABL) shall render our service to help the capital market to increase the supply of securities.
Being a Manager to issue we shall provide assistance to the Private Limited Companies
intended to be converted into Public Limited Companies by way of obtaining necessary
permission from relevant authorities, preparing prospectus for public issue of shares and
debentures, involving in the collection of application money and end through listing of
securities with stock exchange.

Underwriting:

Agrani Equity & Investment Limited with its strong capital base is capable of providing
underwriting commitments for successful completion of IPO of any size enabling the
companies to go public.

2.6 Islamic Banking

Bangladesh‟s most of the people are Muslim. On the other hand there are some baking
principle which is forbidden according to Muslim principle. For this Islamic banking is such
a strategy to overcome this obstacle. Islamic control under Shariah laws.

Islamic Banking Activities:

*Collection of Deposit.
*Investment.

*Fund Transfer.
*Foreign Remittance.

Deposit product

Islamic Banking Windows collect deposits on two basic principles:

1. Al-Wadiah Account.

2. Mudaraba Account.

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A. Al-Wadiah Account:

„Al-Wadiah‟ is the contract of giving total security of money of the depositors. In this regard,
depositors will not participate or take any risk of business with the bank. Depositors hold the
right to withdraw his or her money at any banking time. Depositors do not get profit from
bank. Bank can deduct service charge from the account for maintaining and securing the
deposit.

B. Mudaraba Account:

Mudaraba is a share based business system. Two parties involve in the contract where one
party invests all the capital (owner of capital or Shahib-Al-Mal) and other uses his or her
knowledge, experience, ability, skill and labor to run the business (Manager of Capital or
Mudarib).

Investment:

Islamic Banking Windows invest the money of the depositors in different shariah based areas
in following modes:-

1. Buying-Selling:

A. Bai-Murabaha: Shariah based commodity selling system where profit up on goods is

fixed with consent of buyer and seller. Profit disclose is mandatory.A contract between a
Buyer and Seller under which the seller sells certain specific goods permissible under Islamic
shariah and the Law of land to the Buyer at a cost plus agreed profit payable in cash or on any
fixed future date in lump sum or by instalments. Profit disclosure is mandatory.

B. Bai-Muazzal: based buying-selling system where deferred payment is agreed between

buyer and seller.

24
C. Bai-Salam: Advance purchase system is used to buy/sell of unfinished goods. Delivery
time is fixed and payment is made in advance.

D. Bai-Istisna: This is also a system of advance purchase mainly for manufacturing item
where all the advance can be made in installment or in single disbursement.

Share System:

A. Mudaraba: Mudaraba is a sharing system where one party deploys capital and the other
uses labor. Profit is distributed according to agreed ratio and loss is borne by capital owner.

B. Musharaka: Musharaka is a contract of partnership between two or more parties in which

all the partners contribute capital, participate in the management, share the profit in
proportion to their capital or as per pre-agreed ratio and bear the loss, if any, in proportion to
their capital/equity ratio.

2.7 Treasury

A: Treasury bill:

Treasury Bill is the short term security instrument having maturity within one year by which
the government borrows from the banking system as a part of budgetary requirement.
Presently there are three types of T. Bill in the market in respect of maturity period. They are
of 91 days, 182 days and 364 days tenor.

25
B: Treasury bond:

Treasury Bond is a long term security instrument by which the government borrow from the
Banking system for long term as a part budgetary requirement. Currently there are four types
of Treasury Bond in the market in respect of maturing period. They are of 5 years, 10 years,
15 years and 20 years tenor.

C: Repo:

Repo means Repurchase Agreement from sellers point of view. When a bank or financial
institution having government approved securities in excess after maintain statutory
requirements, falls short of liquidity then it sells its excess securities after maintaining SLR
under repurchase agreement. In this connection the bank which sells security under Repo
should pay interest at an agreed rate. In case of Bangladesh Bank Repo the rate is now 5.50%.

2.8 Investor relation

(ABL) knows it well the growth banking fully depends on client. So it is crying need to keep
a good relation with their investors. For this cause they reserve all information with
transparency and (ABL) always provide their clients account details, balance sheet, position
of bank, liquidity statement etc

2.9 Technical and other services

A. ATM: An ATM card is any payment card issued by a financial institution that enables
a customer to access an automated teller machine (ATM) in order to perform
transactions such as deposits, cash withdrawals, obtaining account information, etc.

26
 B. Locker Service: For safekeeping of customers' valuables like important documents
and goods like jewelries and gold ornaments, Agrani Locker Service is available in
most of the Branches in urban areas.

Custody of Locker / Safe Rent:

a) Yearly TK.2000/= for small size locker

b) Yearly TK.2500/= for medium size locker
c) Yearly TK.3000/= for big size locker
d) Key Deposit at a time for TK 5000/= for all Categories(Refundable on closing)

C. Agency Service:Here below are a few of such services Agrani Bank Limited provides:

1. Collection of utility.
2. Sale/encashment of Saving Certificates
3. Sale/Purchase of Prize bonds
4. Payment of Army/civil pension
5. Payment of non-government primary /secondary school/college /Madrasha
teachers benefit (government portion)
6. Payment of Government primary school teachers salary
7. Payment of Honorarium to freedom fighters.
8. Payment of stipend for female students of secondary and higher secondary
institutions
9. Payment of Govt. allowances to Bayaska, Bidava and Dostho Mohila.
10. Payment of stipend to primary students
11. Payment of stipend to Shishu Kallyan Trust in urban areas.
12. Maintain of BADC disbursement account with 200 branches

27
2.10 Credit services

Agrani Bank Ltd. provides a wide variety of loans and advances to different sectors.
Agrani Bank extends credit in agriculture, trade and commerce, industry and other
sectors. Bank has identified the following industrial sectors as priority sector and has
decided to provide loans and advances at a concession interest rate that is going on:

I. Agro-based industry like processing and preservation of local fruits

II. Computer software and information technology-.
III. Electronics.
IV. Artificial flower production. Frozen food.
V. Non-traditional exportable agriculture products.
VI. Presentation items.
VII. Exportable leather products.

28
 CHAPTER-3

Financial Statement

29
Fixed asset:

We can see that just 2012-2016 in five years (ABL) can maintain their fixed asset
consistency. Though we can see that in 2012 and 2016 slightly lag but this situation is
tolerable cause a country‟s economy situation always not same.

Year Growth (Crore Taka)

2012 1138
2013 1525
2014 1545
2015 1595
2016 1578

Capital growth:

Though 2012 to 2015 we can observe the risen situation but in 2016 it is fall. There are many
reasons for falling capital but the main reasons of falling are backdated technology,
employees are not satisfied with their working environment and facilities and the final one is
in (ABL) remain bureaucracy problem.

Year Growth (Crore Taka)

2012 717
2013 3564
2014 3957
2015 4468
2016 3658

30
Growth of deposit:

Agrani Bank Limited has acquired high amount of deposit till now. By the end of 2012, the
deposit amount was 2, 92,420 million. Most of this deposit amount remains idle in the bank.
Not even half of this amount is used as loan and advance. The lending rate has been lowered
by the government, so the interest rate from loans cannot cover the interest given on deposit.
The high amount deposit bears high cost. To reduce this cost, most of the deposit schemes
have been discontinued. This has a negative effect
on clients who expects a broad range of deposit
services from the bank.

National % Agrani Bank%

12.78 12.29

Import:

The import section decrees day by day. Here bellow have some specific reasons for which the
situation of import likes this.

 Political conflict in our country.

 (ABL) yet haven‟t enough advance technology.
 Slow process and lack of client feedback.
 Political influence in administration

Specially for above four reasons client are not interested continue their import related
transaction with (ABL).

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Yeear Growth (Crore Taka)
2012 16936
2013 15947
2014 15741
2015 10917
2016 10153

Export:

Export section can handle their consistency. It is a good point. But we can see that in
2013,2015 and 2016 little bit lag ,which is created for political untoward.

Yeear Growth (Crore Taka)

2012 8838
2013 7845
2014 8345
2015 7543
2016 7396

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Total asset:

(ABL) have lot of branches and on the other hand (ABL) is a government bank. For this
cause as other government bank every year (ABL) achieve a big amount of fund for
developing system, process and other facilities. As a result (ABL) gain its total asset higher
and higher day by day.

Yeear Growth (Crore Taka)

2012 37872
2013 44416
2014 49487
2015 56535
2016 62356

Net interest rate margin:

Due to government regulation to less interest rate the net interest rate margin from 2015 to till
now is less. Government enforce policy to minimize bad-debt.

Year Growth (Crore Taka)

2013 126.53
2014 118.59
2015 69.25
2016 82.86

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 CHAPTER-4

SWOT analysis of Agrani Bank Limited

34
SWOT analysis of Agrani Bank

The Strengths

 Agrani bank is a State owned bank.

 Wide image

 Unlimited trustiness about ABL to rural people

 High commitments for customers

 Qualified and experiences personnel etc.

 Large number of branches than any other bank in our country.

 Agrani Bank has already established a favorable reputation in the banking

industry of the country.
 A good number of experienced bankers in its management.

 The numbers of depositors are more than other bank in our country.

 Largest nationalized commercial bank of Bangladesh.

 Have proactive & efficient management.

 Most profitable bank in Bangladesh.

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  From HRM view the organization has more than 11345 employees and 867
branches all over Bangladesh.

The Weakness:

 Technology: One of the major weaknesses of Agrani Bank Limited is the technology
used by the bank. With the change of time, techno logical advancement is essential to
survive in the competition. Hence, ABL is lagging far behind in this area. Most of the
branches are not well equipped.

 Promotion: When an employee gets a pro motion to the next level, he/she gets more
compensation. ABL is regular in giving promotion, but the employees get late effect
of this promotion. Often there is a long gap, for example a six mo nth t o o n e y e a r
gap in getting the effect.

 Deposit Amount: Agrani Bank Limited has acquired high amount of deposit till now.
By the end of 2012, the deposit amount was 2,92,420 million. Most of this deposit
amount remains idle in the bank. Not even half of this amount is used as loan and
advance. The lending rate has been lowered by the government, so the interest rate
from loans cannot cover the interest given on deposit. The high amount deposit bears
high cost. To reduce this cost, most of the deposit schemes have been discontinued.
This has a negative effect on clients who expects a broad range o f deposit services
from the bank.
 Training: Agrani Bank Limited has its own training Institute ABTI (Agrani Bank
Training Institute) to strengthen the capabilities of human resources. However, it is
not always possible to give thorough training. Especially, there is a lack of specific
training for specific jobs. As a result, the emplo yee has to learn things fro m the job
by doing it practically.

 The activities of bank are maintained by manually in the rural area.

 People do not get better facility in government bank that they get in privet
commercial bank.

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  Low remuneration package.

 Lack of modern information technology being practiced.

 Salary is fewer amounts other than competitors.

 They have not adequate ATM booths.

 Absence of service providing mentality,

 As Agrani is a public bank so there is an absence of IT applications

 Agrani bank is mainly manual based,

 There are less extracurricular services for the employees so there is a lack of
motivation of workers

 Everything depends on Head office.

The opportunities of ABL are:

 High demand of credit

 High demand of small enterprise financing,

 High demand of remittance facility,

 High demand of investment by depositing

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  Their network service is whole the country, so people get more service here.

 Agrani Bank can collect deposit from rural area that other bank can not do because of
their huge branches.

 People are interested in getting personal loan with lower interest rate.

 High contribution in economic development.

 Money transfer easily in any branches of Bangladesh.

The threats of ABL are

 Level of Competition: Competition is always a major threat for any organization. In
recent years, the number of private bank is increasing. These banks always pose a
threat for others by co ming up with new product line, innovative technology, quality
services etc. Thus the level of competition raises and creates threat for Agrani Bank
Limited.

 Technological Advancement: With time, technology is getting advanced. However,

Agrani Bank Limited is lagging behind. As the techno logy is getting advanced, most
of the banks, especially private banks are upgrading their operating system to survive
in the industry. A BL is still mostly dependent on manual work rather than
technology. With time, the advancement of technology is posing a threat for the bank.

 Compensating Package: Compared to other private banks of Bangladesh, the

compensation package of Agrani Bank Limited is not attractive. Though the
employees of ABL gets fair financial and other benefits, the base pay is not sufficient
(dependent on national pay scale). This poses a threat of switching banks as other
private banks are giving lucrative offer.

 Political Unrest: The political unrest as well as the law and order situation of
Bangladesh is always a threat for banking industry. Especially, the events of recent

38
 years, the corruption level of our country, the poor infrastructure are affecting the
national

 Interfere of CBA and Officers‟ Somiti

 Some commercial and foreign banks

 The broader business environment may alter to your disadvantage. This may be the
result of:

 Political, legislative or regulatory change. For example, a change in legislation

to increase paid up capital up to BDT 2000 Million forced some small local
bank to merge with some other big banks.

 Economic trends. For example, lower exchange rates reducing the income
from overseas.

 Social developments. For example, consumer demands for their individual

need friendly products.

 New technology. For example, technology that makes the products obsolete or
gives competitors an advantage.

 Many banks offer different type of product that people like than Agrani Bank.

 The employees take more time to work that people dislike, so their customers may
decrees in future.
 The contemporary banks of Agrani Bank ltd such as private Bank are its major
rivals.

39
Conclusion

This report set out to analyze products and services of a government commercial bank.
And the study was based on products and service of Agrani Bank Limited. It gave us the
chance to gather some practical knowledge and experience from practical world.

As an organization the Agrani Bank Ltd. has earned the reputation of top listed banks
operating in Bangladesh. The organization is much more structured compared to any other
listed bank operating in Bangladesh. It is relentless in pursuit of business innovation and
improvement. It has a reputation as a leader in financing manufacturing sector.

With a bulk of qualified and experienced human resource Agrani bank Ltd. can exploit any
opportunity in the banking sector. It is pioneer in introducing many new products and
services in the banking sector of the country. Moreover, in the retail-banking sector, it is
unmatched with any other listed banks because of its wide spread branch networking thought
the country. Agrani Bank Ltd. has a large portfolio with huge assets to meet up its liabilities.
Management of this bank is equipped with the expert bankers and managers in all level of
management. Agrani Bank Ltd. is able to adapt quickly with the changes in business
environment.

Its general banking service is widening by introducing online banking, its foreign exchange
business also shows increasing trend. Agrani Bank Ltd. is also expanding its branch network
to avail the more investment opportunity. It has very talented human resources and always
recruits high quality executives in their management positions. It creates the possibility that
this progress of Agrani Bank Ltd. will continue and could overcome its limitations whatever
they have to produce good result in future.

40
 References

1. Bhaban, A.B., 2016. Agrani Bank Limited. policy, 9, p.11.

2. Agrani Bank Limited

https://www.agranibank.org/

3. Lata, R.S., 2014, December. Non-Performing Loan and Its Impact on Profitability of
State Owned Commercial Banks in Bangladesh: An Empirical Study. In Proceedings
of 11th Asian Business Research Conference (pp. 26-27).

4. Rahman, M.I., Adhikary, D. and Yousuf, S., 2014. Productivity and profitability
analysis of nationalized commercial banks (NCBs) in Bangladesh. International
Journal of Economics, Finance and Management Sciences, 2(2), pp.197-205.

5. Jahan, N., 2015. Loan and advance of Agrani Bank Limited.

6. Akhtar, N.M., 2013. Compare and contrast between the general banking: City bank
vs. Agrani bank.
7. Ashraf Ali, S. and Howlader, R. (2017). Banking Law and Practice. Dhaka: Mowla
Brothers.

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