General Banking Activities & Financial Performance of Agrani Bank Limited

General Banking Activities and
Financial Performance Analysis
of
Agrani Bank Limited
2018

“General Banking Activities and
of
Agrani Bank Limited”

An Internship Report on
“General Banking Activities and Financial Performance Analysis
of
Agrani Bank Limited”
SUBMITTED TO:
Professor Md. Shahjahan Khan
Principal
Dhaka City College, Dhaka
SUPERVISED BY:
Mr. Md. Shahinur Sobhan
Associate Professor
Department of Business Administration
Dhaka City College
SUBMITTED BY:
Emran Hosain
National University
Roll No: 1301945
Registration No: 2097650
Batch: 15th
Session: 2012-2013
Major in Finance
Dhaka City College
Date of Submission: January 15, 2018.

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Letter of Transmittal
January 15, 2018
Professor Md. Shahjahan Khan
Principal
Dhaka City College, Dhaka-1205
Subject: Submission of internship report on “General Banking Activities and Financial
Performance Analysis of Agrani Bank Limited”.
Dear Sir,
It’s my pleasure to submit you the internship report on “General Banking Activities and
Financial Performance of Agrani Bank Limited”. I have tried myself to explain all my
learning and experiences, I have gather from my internship program briefly in this
report. I have done my internship under prestigious and leading company in the banking
sector like Agrani Bank Limited.
I have to finish a report based on my practical experience. The study focuses mainly on
the General banking activities and Financial Performance Analysis of Agrani Bank
Limited. I have worked hard preparing this report and I hope that it will fulfill my
degree requirement. I will be always available for answering any query on this report.
So, I fervent requesting and hope that you would be kind enough to accept my report
and oblige thereby.
Sincerely yours,
Emran Hosain
National University
Roll No: 1301945, Registration No: 2097650
Major in Finance
Academic session: 2012-2013
Dhaka City College

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ACKNOWLEDGEMENT
Preparing a report is always difficult for a new student like me. First of all, I would like
to show my gratitude to Almighty for His kind help to finish the report. This report
might never have been completed without the necessary practical knowledge,
assistance of many books, articles, websites and primary data.
I also like to give thanks to principal Professor “Md. Shahjahan Khan” and coordinator
“Md. Sohel Ahmed” and express my heartiest gratitude and deepest respect to my
supervisor “Mr. Md. Shahinur Sobhan” Associate Professor, Department of Business
Administration, Dhaka City College, Without his continuous support and suggestion,
this report would not came into light. Because, a lot of insights and knowledge I have
put and used in this report is learned and gathered from her various instructions.
I am very grateful to Mr. Pranab Kumer Dev (Manager) of Agrani Bank Ltd. Matuail
Branch. I get this opportunity to learn about General Banking Activities, Financial
performance analysis and necessary things. I would like to express my deep gratitude
to Mr. Ferdous Alam, Md Moniruzzaman for their helping hand at the hour of my need.
Their support gives me opportunities to use various documents during my internship
period.
I also owned to my dearest parents and honorable teachers of Dhaka City College who
have given me the light of knowledge from earlier to till today and who have displayed
their helping hands to us during the studies.

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Certificate of Supervisor
This is to certify that, Emran Hosain, National University Roll Number: 1301945,
Registration Number: 2097650, Academic Session 2012-2013, Major in Finance, is a
regular student of 8th semester of BBA program, Department of Business
Administration, Dhaka City College, under the National University of Bangladesh. He
is completed an internship report on “General Banking Activities and Financial
Performance Analysis of Agrani Bank Limited” under my supervision. Which is a
fulfillment of partial requirement of obtaining BBA degree.
I wish his success in all his future endeavors.
(Md. Shahinur Sobhan)
Associate Professor
Dhaka City College

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Executive Summery
Agrani Bank is one of the leading commercial banks with 939 (Year- 2017) outlets
strategically located in almost all the commercial areas throughout Bangladesh. The
Bank provides all kinds of commercial banking services to its customers. Among them,
the day-to-day services provided to the customers are known as ‘General Banking
Activities and Financial Performance Analysis’ which include collection of deposits,
honoring checks, keeping records and so on.
In the first chapter, it includes origin of the report, objectives, methodologies, scope
and limitations of the report. Origin of the report describes to gather experience about
the related subjects and be able to apply theoretical experience in the field of real life
action. It also describes the topic of the report. The objective is to define the term to
fulfill the partial requirement of BBA program and to get idea about general banking
activities and financial performance analysis of Agrani Bank Limited. I have collected
primary data by personal observation as well as informal conversation with the client
and secondary data by annual report of Agrani Bank Limited, website are also used as
major sources of information. Scope of the report is broad as it is regarding general
banking activities and financial performance analysis of Agrani Bank Limited. In the
preparation of the report there are some limitations; duration of limited time is one
them.
In the second chapter, it focuses on profile of Agrani Bank Limited, historical
background says that the bank commenced and its formal operations in 1972, it has
been able to create an image and significant reputation within a very short period of
time. To become the best leading state owned commercial bank of Bangladesh opera
ng at international level of eﬃciency, quality, sound management, excellent customer
service and strong liquidity is the vision of Agrani Bank Limited. To maximize the
wealth of shareholders is the long term goal and to earn satisfactory rate of return on
investment by providing wide range of banking services is the short term goal of Agrani
Bank Ltd. The objective of Agrani Bank Ltd. is to provide efficient and innovative
banking services to the people of all sections of our society.

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In the third chapter, this report provides knowledge about general banking activities
that performed by the bank. General banking activities are performed through five
sections. There are various types of account such as current account, savings account,
short term account, pension savings scheme; fixed deposit reserve account etc. general
banking activities are the nerve center of a bank. ABL also aids to remit fund from one
place to another place on behalf of its customers as well as non- customers of Bank. It
also contains loans and advances where I briefly discussed types of loan and advance
of Agrani Bank Ltd. and their policy as well as procedure. Every day, Agrani Bank
receives cash from the customers and records the transaction appropriately. On the other
hand, the Bank makes payment of cash by honoring checks and produces records of
those transactions.
In the fourth chapter, this report consist on financial performance analysis of ABL.
Financial performance analysis is the process of reviewing and analyzing a company's
financial statements to make better economic decisions by using the income
statement, balance sheet, statement of cash flows, and a statement of changes in equity.
Every year ABL’s expenditure rise yearly, where the revenue level decrees consistently.
Because of that and other operating activities effect on income statement, balance
sheet, statement of cash flows. For that reason, the result of ‘Ratio Analysis’ mostly
unstable and undesirable.
It is true that Agrani Bank Ltd. is facing some problems to meet up customer demands.
Due to unattractive salary package, the Bank fails to recruit expert and skilled
personnel. In addition, Agrani Bank Ltd. is not well-equipped with the modern
technology to provide high class customer service. There are some recommendations
toward concern authority for overcoming the shortcomings of ABL in banking
activities should be organized and performed using secured IT applications. All
branches should be well decorated staffs and officers should speak polite and low voice,
Bank should introduce new product, Bank should provide appropriate training, take
motivational effort.
Nevertheless, if the management of Agrani Bank tries hard to overcome the drawbacks
and come-up with effective human resource and financial strategies, the Bank will soon
turn into a strong opponent in the banking sector of Bangladesh.

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Acronyms
ABL Agrani Bank Limited
BB Bangladesh Bank
BDT Bangladesh Taka
CC Cash Credit
CD Current Deposit
CIB Credit Information Bureau
DD Demand Draft
DP Depository Participants
EXP Export Form
FC Foreign Currency
FDBC Foreign Documentary Bill Collection
FDD Foreign demand draft
FDR Fixed Deposit Receipt
FER Foreign Exchange Regulation
FT Foreign Transfer
GDP Growth Domestic Product
IBC Inward Bills for Collection
L/C Letter of Credit
IMP Import Form
IRC Import Registration Certificate
MTA Mail Transfer Advice
OD Order Demand
PAD Payment Against Document
SWIFT Society for Worldwide Interbank Financial
Telecommunication
TC Travelers Cheque
TIN Tax Identification Number
TT Telegraphic Transfer
ROA Return on Assets
ROE Return on Equity
ROI Return on Investment
EPS Earnings Per Share
NAVPS Net Assets Value Per Share

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TABLE OF CONTENTS
PREFATORY PARTS
LETTER OF TRANSMITTAL i
ACKNOWLEDGEMENT ii
CERTIFICATE OF SUPERVISOR iii
EXECUTIVE SUMMARY iv-v
ACRONYMS vi
LIST OF TABILES AND CHARTS xi
LIST OF FIGURES xii
CHAPTER ONE : INTRODUCTION 1-6
1.1 Introduction 2
1.2 Origin of the Study 2-3
1.3 Objective of the Study 3-4
1.3.1 Primary Objectives 3
1.3.2 General Objectives 3
1.3.3 Specific Objectives 3-4
1.4 Methodology of the study 4-5
1.4.1 Selection of topic 4
1.4.2 Sources & collection of data 4-5
1.4.3 Analysis, Interpretation and Presentation of Data 5
1.4.4 Finding of the study 5
1.4.5 Report Preparation 5
1.4.6 Analytical software used 5
1.5 Purpose of the Report 5-6
1.6 Limitation of the Study 6
CHAPTER TWO : ORGANIZATIONAL OVERVIEW 7-22
2.1 Overview of Agrani Bank Limited 8
2.2 Establishment and Status of Agrani Bank Limited 8-9
2.3 Vision, Mission, Values and Motto of Agrani Bank
Ltd.
9
2.4 Strategic Objectives of Agrani Bank Ltd. 10

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2.5 Ethical Standards of Agrani Bank Ltd. 10
2.6 Corporate profile of Agrani Bank Limited as on 2016 11-12
2.7 Products and Services offered by Agrani Bank
Limited
12-16
2.8 Management Hierarchy of ABL 17
2.9 Shareholders’ Information 18
2.10 Participation and Contribution to the Nation 19-20
2.11 Corporate Social Responsibility 20
2.12 SWOT Analysis of Agrani Bank Limited 21-22
2.12.1 Strength of Agrani Bank Limited 21
2.12.2 Weakness of Agrani Bank Limited 21
2.12.3 Opportunity of Agrani Bank Limited 22
2.12.4 Threats of Agrani Bank Limited 22
CHAPTER THREE : GENERAL BANKING OF AGRANI
BANK LIMITED
23-42
3.1 Definition of Bank 24
3.2 History of Banking 25-26
3.3 General Banking 26
3.4 Function of General Banking Activities 26-37
3.4.1 Account Opening 27-32
3.4.1.1 Current account or Demand Deposit (CD Account) 27-30
3.4.1.1.1 Documentation for Opening a Current Account 28-29
3.4.1.1.2 Formalities for Opening a Current Account 29-30
3.4.1.2 Savings Deposit (SB Account) 30-31
3.4.1.3 Fixed or Time Deposit (FDR) 32
3.4.1.4 Other Accounts 32
3.4.2 Remittance 32-36
3.4.2.1 Payment Order Issue/Collection 34
3.4.2.2 Demand Draft Issue/Collection 34
3.4.2.3 Telegraphic or Telephonic Transfer (TT) Issue/
Collection
35
3.4.2.4 Locker Service 36

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3.4.2.5 Mail Transfer Advice (MTA) 36
3.4.3 Clearing 36-37
3.4.4 Cash 37
3.4.5 Accounts Department 37
3.5 Loan and Advances 38-42
3.6 Types of Loan and Advance 38-41
3.6.1 Cash Credit (CC) 39
3.6.2 Overdraft 39
3.6.3 Small Loan 40
3.6.4 Demand Loan 40
3.6.5 Staff Loan 40
3.6.6 Home Loan 40
3.6.7 Crop Loan 41
3.7 Interest Rate 41
3.8 Total Loan Sanction 42
CHAPTER FOUR : FINANCIAL PERFORMANCE
ANALYSIS
43-62
4.1 Financial Performance Analysis 44
4.2 Financial Performance of Agrani Bank Limited 45-51
4.2.1 Total Operating Income 46
4.2.2 Total Operating Expenditure 47
4.2.3 Net Interest Income 48
4.2.4 Operating Profit 49
4.2.5 Net profit after tax 50
4.2.6 Total Assets 51
4.2.7 Ratio Analysis of Agrani Bank Ltd.(2012-2016) 52-62
4.2.7.1 Liquidity Ratio
 Current Ratio
52
4.2.7.2 Profitability
 Net Profit Ratio
 Return on Investment (ROI)
 Return on Asset (ROA)
53-56

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 Return on Equity (ROE)
4.2.7.3 Leverage Position
 Debt to Total asset Ratio
57
4.2.7.4 Market Prospect Ratios
 Earnings Per Share (EPS)
 Net Assets Value Per Share (NAVPS)
58-59
4.2.7.5 Assets – Quality Indicators
 Loans & advances to deposit ratio
 Loans & advances to total assets ratio
60-61
4.2.7.6 Capital Adequacy Ratio
 Capital Adequacy Ratio
 Core Capital Ratio
61-62
CHAPTER FIVE : FINDINGS, RECOMMENDATIONS &
CONCLUSION
63-66
5.1 Findings 64
5.2 Recommendations 65
5.3 Conclusion 66
APPENDED PART 67-76
BIBLIOGRAPHY 68
APPENDICES 69-76
APPENDIX- 1 69-70
APPENDIX- 2 71-76

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List of Tables and Charts
Table no. Table Name Page no.
2.1 Corporate profile of Agrani Bank Ltd. (Year - 2016) 11-12
2.2 Management Hierarchy of Agrani Bank Ltd. 17
2.3 Shareholders’ Information 18
2.4 Sectors facilitated against CSR is appended below
(Year 2011-2016)
20
3.1 The interest rates followed by Agrani Bank Ltd for
Fixed Deposit Account
32
3.2 Remittance Scenario of Bangladesh from 2012 to 2016 33
3.3 Custody of Locker / Safe charge 36
3.4 Interest Rate 41
3.5 Sector wise Loan’s amount 42
4.1 Financial Performance of Agrani Bank Limited (2015-
2016)
45
4.2 Total Operating Revenue of Agrani Bank Ltd. 46
4.3 Total Operating Expenditure of Agrani Bank Ltd. 47
4.4 Net interest income of Agrani Bank Ltd. 48
4.5 Net Operating income of Agrani Bank Ltd. 49
4.6 Net Operating Profit after Tax of Agrani Bank Ltd. 50
4.7 Total Assets of Agrani Bank Ltd. 51
4.8 Current ratio of Agrani Bank Ltd. 52
4.9 The Net profit ratio of Agrani Bank Ltd. (2012-2016) 53
4.10 The Return on investment (ROI) of Agrani Bank Ltd. 54
4.11 The Return on Assets (ROA) of Agrani Bank Ltd. 55
4.12 The Return on Equity (ROE) of Agrani Bank Ltd. 56
4.13 The Debt to Total asset Ratio of Agrani Bank Ltd 57
4.14 The Earnings per share (EPS) of Agrani Bank Ltd. 58
4.15 The Net asset value per share (NAVPS) of ABL 59
4.16 The Loans & advances to deposit ratio of ABL 60
4.17 The Loans & advances to Assets ratio of ABL 61
4.18 The capital adequacy ratio (CAR) of Agrani Bank Ltd. 62

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List of Figures
Figure no. Subjects Page no.
2.1 SWOT Analysis of Agrani Bank Ltd. 21
3.1 Remittance Scenario of Bangladesh 33
4.1 Total Operating Revenue 46
4.2 Total Operating Expenditure 47
4. 3 Net interest income 48
4.4 Net Operating income 49
4.5 Net Operating Profit after Tax 50
4.6 Total Assets 51
4.7 Current ratio 52
4.8 The Net profit ratio 53
4.9 Return on investment (ROI) 54
4.10 Return on Assets (ROA) 55
4.11 Return on Equity (ROE) 56
4.12 Debt to Total asset Ratio 57
4.13 Earnings per share (EPS) 58
4.14 Net asset value per share (NAVPS) 59
4.15 Loans & Advances to Deposit Ratio 60
4.16 Loans & Advances to Assets Ratio 61
4.17 Capital Adequacy Ratio (CAR) 62

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Chapter One: Introduction

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1.1 Introduction
Banking has a long and rich history. It started as a result of people’s need. And with
ages it has been playing an important role in fulfilling the dire needs of businessmen
and others. Modern banking is a result of evolution driven by changing economic
activities and life styles. Entering in to a new millennium, banking needs have become
more diverse and exotic than ever before. It is known now that commercial bank is a
profit maximizing institution. Hence it should provide loans to those sectors in which
its return is higher. But the nationalized commercial banks are conducting banking
business with different purposes. The main purpose is not just to make profit but also
to maximize the social benefit.
I think it is very important to gather the technical know-how regarding the critical
aspect of banking procedure practiced by the bank (Agrani Bank Ltd.) by preparing this
report.
Among this internship program is designed with the view to developing student’s skill
in object-oriented business management, capable of understanding and solving real life
business related problems. It provides practical exposure and help students to
understand corporate world. This course deals with the fundamental concept of
corporate worlds which are essential for any persons aspiring to be the active participant
of this competitive world.
As per the course requirement of the BBA program every eighth semester, the student
should prepare the internship report after the completion of the three months internship
in the institution and the students of Dhaka City College (BBA Department) are not the
exception. This internship had been fruitful because it had helped me to see the same
things from the two opposite directions and find the difference in the perception of these
two completely opposite sides as a neutral observer.
1.2 Origin of the report
This report has been prepared as a part of the internship program, which is an integral
part of the BBA Program .Under this program a student has to take a total of 8
semesters. A student has to take a 3-month internship program to an organization. This

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will give a practical orientation of his/ her theoretical study. After completion of the
program she/ he has to submit an internship report to the department and defense the
report. So this report is originated as part of the course requirement of the BBA
program.
The report on “A study on General Banking Activities & Financial Performance of
Agrani Bank Limited” has been prepare to fulfill an essential requirement “The
Internship Program” for the successful completion of my “Bachelor of Business
Administration (BBA) Program” under the supervision of Mr. Md. Shahinur
Sobhan.
1.3 Objectives of the Study
1.3.1 Primary objective
To fulfill the partial requirement of Bachelor of Business Administration (BBA)
degree.
1.3.2 General objective
 To support the students as grounded career persons who know the real-life
working situations and had already felt the pressure of the job place
environment.
 To show the ability to mold the theoretical knowledge learned throughout the
BBA program as per the requirement of the job placement.
 To highlight the activities carried out in ABL.
 To be prepared for the future through the little knowledge gained from the three
months of the job like experience.
1.3.3 Specific objectives
 To explore the applicability of theoretical knowledge in the practical workplace.
 To develop managerial and communication skills to tackle the real life
situations.
 To get the practical exposure and understand the institutional cultures and value
system of the corporate world.

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 To gather the knowledge on the various activities performed in various
departments of the bank and be aware of the products and services.
 To develop the ability to handle various kinds of customers with varying
knowledge level, problems, and requirements.
 To observe the major outline of financial performance of Agrani Bank Limited.
1.4 Methodology
This internship report is the study of particular subject backed by the collection,
compilation, presentation and interpretation of relevant information. It starts from the
selection of the organization for the internship, performance of different kinds of
activities and placement in different parts of the organization and last collection of
various primary and secondary data for the preparation of the report. It helped to
analyze the findings in meeting the objectives of the study.
1.4.1 Selection of topic
The topic of the report has been selected on the basis of practical experience through
internship and the advice of internship supervisor Mr. Md. Shahinur Sobhan.
1.4.2 Sources & collection of data
For the report the data are collected from the primary source and secondary source.
They are as follows:
I. Primary Data
 Observation of working environment of the bank.
 Visited banks and practiced as the intern in order to associate with different
aspects of the banks.
 Met with the customers of the bank and had direct contact with them for relevant
information.
 Informal discussion and interaction with the staff of the bank.

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II. Secondary Data
 Annual report of Agrani Bank Limited (ABL).
 Information from the official website of ABL.
 Notices and Working guideline of ABL
 Application form for different type of account opening
 Browsers of the different website.
 Study on other Internship Report.
1.4.3 Analysis, Interpretation and Presentation of Data
To analyze, interpret and presentation of data some arithmetic and graphical tools are
used to understand them clearly.
1.4.4 Finding of the study
Here, problems of the study are pointed out and beside this recommendation are
suggested to overcome the problems.
1.4.5 Report Preparation
On the basis of the suggestion of our Supervisor, some deduction and some additions
are made and final report is prepared thereafter.
1.4.6 Analytical software Used
I. Microsoft Word
II. Microsoft Excel.
1.5 Purpose of the Report
 To identify the historical background of the Agrani Bank Ltd.
 To know the objectives behind their establishment.
 To know General Banking and Financial performances of Agrani Bank
Ltd.
 To know the objectives at present condition if they differ from the origin.

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 To identify the major policies by which they are operating now.
 To identify the facilities offered by the Agrani Bank Ltd.
 To know whether Agrani Bank adopted & coped with modern
technological advancement in the banking system.
 To identify the social responsibilities of the bank as a social entity.
1.6 Limitation of the Study
Despite lots of opportunities prevailing for the study, there were few limitations which
restricted the study and they are:
 It was difficult to have the in-depth study of all the departments due to the time
constraints.
 The bank’s policy in keeping some matters confidential prevented from
analyzing various critical facts and issues.
 Limited availability of annual reports, office records, and other published and
unpublished source of data.
 Time and resources constraints are the major limitations of this report.
 Despite the sincere effort and willingness to help of the bank executives, their
busy schedules could not give to interne as per the expectations.
 This report does not explain the overall functioning of the bank.
 Since the intern is confined to few departments, only the related data of limited
departments are available
However, ignoring all limitations, it has been best tried to gain adequate banking
knowledge and sincerely perform the task assigned.

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Chapter Two: Organizational
Overview

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2.1 Overview of Agrani Bank Limited
Agrani Bank Limited, a state owned leading commercial bank with 939 (2017) 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 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.
Agrani Bank Limited is governed by a Board of Directors consisting of 10 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. The bank has 11 Circle offices, 34 Divisions in head office, 58 zonal
offices and 939 branches including 27 corporate and 40 AD (authorized dealer)
branches.
2.2 Establishment and Status of Agrani Bank Limited
Agrani Bank Limited has been incorporated as a Public Limited Company on May 17,
2007 Vide Certificate of Incorporation # 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 # 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.

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The Bank’s current shareholdings comprise Government of the People’s Republic of
Bangladesh and other 12 (Twelve) shareholders nominated by the Government. The
Bank has 939 branches as on July 1, 2017.
The Bank has four wholly- owned subsidiary Companies named:
a. Agrani Exchange House (Pvt.) Ltd. in Singapore,
b. Agrani Remittance House SDN, BHD in Malaysia,
c. Agrani Equity and Investment Limited and
d. Agrani SME Financing Company Limited.
2.3 Vision, Mission, Values and Motto of Agrani Bank Ltd.
2.3.1 Vision
To become the best leading state owned commercial bank of Bangladesh opera ng at
international level of eﬃciency, quality, sound management, excellent customer service
and strong liquidity.
2.3.2 Mission
To operate ethically and fairly within the stringent framework set by our regulators and
to assimilate ideas and lessons from best practices to improve our business policies and
procedures to the benefit of our customers and employees.
2.3.3 Values
We value in integrity, transparency, accountability, dignity, diversity, growth and
professionalism to provide high level of service to all our customers and stakeholders
inside and outside the country.
2.3.4 Motto
To adopt and adapt modern approaches to stand supreme in the banking arena of
Bangladesh with global presence.

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2.4 Strategic Objectives of Agrani Bank Ltd.
 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.
2.5 Ethical Standards of Agrani Bank Ltd.
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.

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2.6 Corporate Profile of Agrani Bank Limited (As on 31.12. 2016)
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
Bangladesh
Chairman Dr. Zaid Bakht
Managing
Director & CEO Mohammad Shams-Ul Islam
Company
Secretary Khandaker Sajedul Haque
Registered
Office
9/D Dilkusha, Dhaka 1000, Bangladesh
Tax
Identification
No.
0022001223 Vat Registration No. 19011031730
Authorized
Capital
Tk. 2,500.00 Crore Total Deposits 49,405.01 Crore
Paid up Capital Tk. 2,072.29 Crore Loans & Advances 26,587.11 Crore
Total Equity 3,657.68 Total Assets 62,356.74
Employee 12,672 Branch 935
Circle Office 11 Zonal Office 62
Corporate
Branch
27 Authorized Dealer
Branch
40
Foreign
Correspondent
318 Foreign Remittance/
Exchange House
71
Credit Rating
Alpha Credit Rating Limited rated on December
05, 2016
Long
Term
Short
Term
Entity Rating 2016 (as Govt. Guaranteed Bank) AAA AR-1
Surveillance Rating 2016 (Stand Alone Basis) A- AR-3
Outlook Stable
Subsidiary
Companies
in Bangladesh
Agrani Equity & Investment Limited
Agrani SME Financing Company Limited
Subsidiary
Companies in
Overseas
Agrani Exchange House Private Limited, Singapore (4 branches)
Agrani Remittance House Sdn. Bhd., Malaysia (6 branches)
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

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Table 2.1: Corporate Profile of Agrani Bank Ltd.
2.7 Product and Services of Agrani Bank Ltd.
1. Deposit
I. Taka Account
 Current Deposit (CD)
 Savings Deposit (SB)
 Fixed Deposit (FDR)
 Special Notice Time Deposit (SNTD)
 Non-Resident Special Taka Account (NRTA)
 Non-Resident Investors Taka Account (NRIT)
 Agrani Bank Pension Scheme (APS)
 Agrani Bank Bishesh Shanchay Scheme (ABS)
 Students Savings A/C (School Banking)
 Small Life Insurance Policy Holders A/C
 Ten Taka Farmers A/C
 Freedom Fighters A/C
 Other Beneficiaries A/C under Social Securities Program
 Agrani Bank Quarterly Income scheme
 Agrani Bank Double Benifit scheme
 Agrani Bank Millinionaire Deposit scheme
 Agrani Bank Lakhpoti Deposit scheme
 Agrani Bank Prabash Deposit scheme
II. Foreign Currency Account
 Foreign Currency (FC) A/C
 Non-Resident Foreign Currency Deposit (NFCD) A/C
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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 Resident Foreign Currency Deposit (RFCD) A/C
 Exporters Retention Quota (ERQ) A/C.
III. Rural & Agro Credit
 Crop Loan
 Fishery Loan
 Animal Husbandry Loan
 Agri Machinery Loan
 Rural Transport Loan
 Swanirvar Loan
 Poverty Alleviation Loan.
IV. Small and Medium Enterprise Loan
 Service Sector Loan
 Trading Sector Loan
 Manufacturing Sector Loan
 Women Entrepreneurs Loan.
V. Other Loan Products
 Agrani Bidesh Jawar Loan (ABJL)
 Green Finance
 Any purpose Loan
 Term Loan for Muktijoddha.
VI. Import Finance
 Loan Against Imported Merchandise (LIM)
 Loan Against Trust Receipt (LTR)
 Payment Against Document (PAD).
VII. Export Finance
 Export Cash Credit
 Packing Credit (PC)
 Local / Foreign Bills Purchased (FBP)
 Loan Against Export Development Fund (EDF)
 Advance against Cash Incentive (Subsidy, Assistance).

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2. Loan and Advances
I. Continuous Loan
 Cash Credit (Hypo)
 Cash Credit (Pledge)
 Secured Overdraft (SOD).
II. Term Loan
 Industrial Credit (IC)
 Housing Loan (General & Commercial)
 Consumer Credit
 Loan for Overseas Employment
 Weavers’ Credit.
3. Treasury
III. Money Market
 Maintaining CRR and SLR
 Call Money Transaction
 Term Placement (FDR)
 Treasury Bills
 Treasury Bonds
 Secondary Trading of Govt. Securities
 Repo
 Reverse Repo
 Custodian Services
 Other Investments.
IV. Foreign Exchange Market
 Selling Foreign Currency for Import Payment
 Buying Foreign Currency against Export Proceeds
 Fixation of Exchange Rate
 Foreign Currency Buying and Selling
 SWAP Transactions
 Forward Transaction
 Term Placement

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4. Letter of Credit
 Letter of Credit - Sight
 Letter of Credit - Usance
 Back to Back L/C.
5. Letter of Guarantee
 Advance Payment Guarantee
 Bid Bond
 Performance Guarantee
 Shipping Guarantee
 Guarantee - Others
 Standby Credit
6. Other Foreign Exchange Service
 Documentary Bill Collection
 Advanced Payment for Import & Export
 Foreign Remittance (Incoming & Outgoing)
 Foreign Currency Endorsement against Passport
 Issuance of Draft, TT
 Collection of Draft, Cheque, TC
 Opening of Student File, Medical File.
7. Cash Service
 ATM Service
 Cheque Encashment
 Foreign Currency.
8. Fund Transfer
 Inter-Branch Money Transfer
 SWIFT
 Telegraphic Transfer (TT)
 Issuing Foreign Draft
 Bangladesh Electronic Fund Transfer Network (BEFTN)

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 Bangladesh Automated Clearing House (BACH)
 Online Deposit to Accounts
9. Value Added Service
 Locker Service
 Utility Bill Collection
 Arm forces Pension Payment.
10.Merchant Banking Service
 Issue Management
 Underwriting
 Portfolio Management.
11.Islamic Banking Service
I. Deposit
 Al Wadiah Current A/C
 Mudaraba Savings A/C
 Mudaraba STD A/C
 Mudaraba Term Deposit
 Mudaraba Special Scheme Deposit.
II. Investment
 Bai Murabaha (Pledge)
 Bai Muazzal (Hypo)
 Higher purchase Shirkatul Meilk.

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2.8 Management Hierarchy of ABL
Chart 2.2: Management Hierarchy of Agrani Bank Ltd.
Board of Directors
Chairman & Directors
Senior Officers
Managing Directors / (CEO)
Deputy Managing Director
General Managers
Deputy General Managers
Assistant General Managers
Principal Officers
Senior Principal Officers
Non- Clerical Staff Members
Clerical Staff Members
Attorney Assistant

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2.9 Shareholders’ Information
Particulars
Distribution of Shares
31 December 2016 31 December 2015
Government of Bangladesh 20,72,29,395 20,72,29,392
Directors 9 12
General Public _ _
Total 20,72,29,404 20,72,29,404
Shares held by Directors
Sl.
No.
Particulars Status Share Closing
Position
Change
1 Dr. Zaid Bakht Chairman 1 1 0%
2 Gokul Chand Das Director 1 1 0%
3 Sangita Ahmed Director 1 1 0%
4 Shameem Ahsan Director 1 1 0%
5 Hasina Newaaz Director 1 1 0%
6 Professor Dr. Nitai
Chandra Nag
Director 1 1 0%
7 M. Ashiqul Hoque
Chawdhury
Director 1 1 0%
8 Kashem Humayun Director 1 1 0%
9 MD. Ansar Ali Khan Director 1 1 0%
Total 9 9
Table 2.3: Shareholders’ Information of Agrani Bank Ltd.
Dividend Distribution
1. 100 Percent stock dividend i.e. 1 bonus share for every 1 share for the year 2008.
2. 10 Percent stock dividend i.e. 1 bonus share for every 10 shares for the year
2009.
2010.
2011.

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2.10 Participation and Contribution to the Nation (As on 31.12. 2016)
 Deposit
Deposit is Tk. 49,405 crore which is 5.88% of total deposits of all banks in Bangladesh.
 Loans & Advances
Loans & Advances is Tk. 26,587 crore which is 3.73% of total loans & advances of all
banks.
 Import
Import is Tk. 10,152.88 crore which is 2.86% of total import of all banks in Bangladesh.
 Export
Export is Tk. 7,396 which is 2.69% of total export of all banks in Bangladesh.
 Remittance
a. Foreign remittance is Tk. 12,022 crore which is 11% of total national remittance
figure.
b. In the year 2012, 2013, 2014, 2015 and 2016 ABL achieved first position among
the SCBs in collecting foreign remittance.
 SME
In SME sector ABL disbursed Tk. 4,419 crore in the year 2016.
 ABL’s Contribution in National Exchequer
a. Tk. 269 crore as Advance Tax
b. Tk. 45 crore as VAT.
c. Tk. 161 crore as Tax Deducted at Source from the customers.
d. Staﬀ income tax Tk. 5 crore
e. Tk.63 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 935 (2016) branches are using real ˆme online Core Banking So–
ware T24.

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 Award by Agrani
Seven eminent writers are awarded “Agrani Bank Children Literary Award”, every year
a prestigious literary award of the country introduced by Agrani Bank since 1981.
Agrani Bank Limited Gold Medal for scholar student of Rajshahi University.
 Branch Network
ABL is the second largest bank of the country in respect of branch network which is
935 in 2016.
2.11 Corporate Social Responsibility
As an integrated part of the Corporate Social Responsibility (CSR), Agrani Bank
Limited is much aware in support of environmentally sustainable social development
since its introduction. The Bank is committed to CSR towards the community. Our
ethics are clear i.e. not to earn excessive profits, our vision is to build up a society where
human dignity and human rights receive the highest consideration and evaluation. Our
motto is also to improve the society and its culture by means of CSR. Its activities are
related to the needs of our valued customers, shareholders, the employees and
communities.
Sectors facilitated against CSR is appended below (Year 2011-2016): Taka in lac.
Category 2011 2012 2013 2014 2015 2016 Total
Education 251.11 281.18 143.31 102.86 - 1.00 779.46
Health Care 86.40 85.32 154.04 37.27 103 - 466.03
Disaster Relief 2.00 14.19 262.15 151.08 174.33 225.62 829.37
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 - 2.50 192.91
Social Welfare - - - - - 2.47 2.47
Others 140.62 75.69 81.19 115.02 39.18 13.52 465.22
Total
Contribution 572.83 532.98 837.15 645.55 316.51 245.11 3150.13
Table 2.4: CSR activities of Agrani Bank Ltd.
In the year 2016, ABL disbursed Tk.13.52 lac in different welfare activities.

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2.12 SWOT Analysis of Agrani Bank Limited
Fig 2.1: SWOT Analysis of Agrani Bank Ltd.
2.12.1 The Strengths of Agrani Bank Ltd. are:
 Agrani bank is a State owned bank.
 So it has a wide image
 Unlimited trustiness about ABL to rural people
 High commitments for customers
 Qualified and experiences personnel etc.
2.12.2 The Weaknesses of Agrani Bank Ltd. are:
 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.
S
O
S
W
v
T
S
STRENGTHS
(+)
WEAKNESSES
(–)
THREATS
(–)
OPPORTUNITIES
(+)

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2.12.3 The Opportunities of Agrani Bank Ltd. are:
 High demand of credit
 High demand of small enterprise financing,
 High demand of remittance facility,
 High demand of investment by depositing.
The broader business environment may shift in favor of ABL. This may be caused by:
• 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, falling interest rates reducing the cost of capital.
• Social developments. For example, demographic changes or changing consumer
requirements leading to an increase in demand for the products.
• New technology. For example, new materials, processes and information technology.
2.12.4 The Threats of Agrani Bank Ltd. are:
• 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, new regulation increasing
your costs or requiring product redesign.
• 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.

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Chapter Three: General Banking
of Agrani Bank Limited

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3.1 Definition of Bank:
Finance is the life blood of trade, commerce and industry. Now-a-days, banking sector
acts as the backbone of modern business. Development of any country mainly depends
upon the banking system.
A bank is a financial institution which deals with deposits and advances and other
related services. It receives money from those who want to save in the form of deposits
and it lends money to those who need it.
Different Authors and Economists have given some structural and functional
definitions on Bank from different angles:
1. Cairn Cross:
“Bank is a financial intermediary institution which deals in loans and advances.”
2. R.P. Kent:
“Bank is an institution which collects idle money temporarily from the public and lends
to other people as per need.”
3. P.A. Samuelson:
“Bank provides service to its clients and in turn receives perquisites in different forms.”
4. W. Hock:
“Bank is such an institution which creates money by money only.”
5. Sir John Pagette:
“Bank is such a financial institution which collects money in current, savings or fixed
deposit account; collects cheques as deposits and pays money from the depositors
account through cheques.”
6. Indian Company Law 1936 defines Bank as:
“A banking company which receives deposits through current account or any other
forms and allows withdrawal through cheques or promissory notes.”
Oxford Dictionary defines a bank as “an establishment for custody of money, which
it pays out on customer’s order.”

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3.2 History of Banking
A bank is a financial institution licensed to receive deposits and make loans. Banks may
also provide financial services, such as wealth management, currency exchange and
safe deposit boxes.
The history of banking refers to the development of banks and banking throughout
history, with banking defined by contemporary sources as an organization which
provides facilities for acceptance of deposits and provision of loans.
The first banking activities were the merchants of the world, who made grain loans to
farmers and traders who carried goods between cities. This began around 2000 BC
in “Assyria and Sumeria”. Later, in ancient Greece and during the Roman Empire,
lenders based in temples made loans, while accepting deposits and performing
the change of money. Archaeology from this period in ancient China and India also
shows evidence of money lending activity.
The word Bank is widely and extensively used and circulated. The Bank in English
carries the same meaning in Bengali. The origin of English word Bank came into being
(when, where and how) which could not be specifically identified. The history
regarding the origin of Bank, even after the twelfth century, is not also clear which has
been based on guesses. According to some writer the word Bank was derived from
“Banco‟, “Bancus‟, “Banque‟ or “Banc‟ all of which mean a bench upon which the
mediaeval European Money-lenders and Money –Changers used to display their coins.
Anyhow this word has been in use from the middle ages in connection of a bank. In the
words of German writer W. Frankace, a long stool or bench was said to be replaced by
Bank, Bangke etc. in the Scandinavian and Mid-European countries. Again, Dutch and
French words “Banque‟, “Bangko‟ were used to mean stool or bench and in course of
time the word Bank came into effect.
In the Mediaeval age Italian states were sound and solvent economically and
commercially. At that time a group of people used to conduct business of transaction
of money sitting on a stool or bench which was replaced by “Banco”, “Banko‟,
“Banca‟, “Bangk”, “Bancus‟, “Banc” etc. It is assumed that the word “Bank” was
originated from these words.

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During the 20th century, developments in telecommunications and computing caused
major changes to banks' operations and let banks dramatically increase in size and
geographic spread.
3.3 General Banking
Bank is nothing but a middleman between lenders (surplus unit) and borrowers (deficit
unit). To provide loan, a bank needs a huge amount of money from the depositors.
General banking is the side where banks offer different alternatives to the clients to
deposit and remit their money. To encourage the clients, bank offers different options
in front of their clients. Most of these options are very much similar between the banks,
but the customer services and facilities may not be the same.
General Banking is an operational function of the bank which consists 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.
3.4 Function of General Banking Activities
General banking department performs the core functions of bank, operates day-to-day
transactions of banking operation. Every day it receives deposits from customers and
meets their demand for cash. It opens new accounts, remits customer’s money from one
place to another through issuing bank draft, pay order, telegraphic transfer, collects all
bill like Local cheque collection, Inward bill collection and outward bill collection for
customers. Since bank is bound to provide these services everyday, general banking is
also known as retail banking.
General Banking of Agrani Bank Ltd. is divided into 5 divisions:
1. Account opening
2. Remittance
3. Clearing
4. Cash
5. Account’s Department.

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3.4.1 Account Opening
The relationship between the banker and the customer begins with the opening of an
account by the customer. Initially all the accounts are opened with a deposit money by
the customer and hence these accounts are called deposit account. Usually a person
needs to open an account ton take services form it. Without an opening an account, one
can get only a few services from the bank. So the banking begins actually by opening
an account with a bank. Generally, there are three types of accounts in our country’s
banking system:
I. Current account or Demand Deposit (CD Account)
II. Savings Deposit (SB Account)
III. Fixed or Time Deposit (FDR).
3.4.1.1 Current account or Demand Deposit
Current account is purely demand deposit account because the bank is bound to pay the
amount to the account holder on demand at any time. It is running and active account,
which may be operated upon any number of times during a working day. There is no
restriction on the number and the amount of withdrawals from a current account.
The special characteristics of a current account are as follows:
I. The primary objective of current is to serve big customers such as businessmen,
joint stock companies, private limited companies, public limited companies etc.
from the risk of handling cash by themselves.
II. The cost of providing current account facilities is considerable to the bank since
they undertake to make payments and collects the bills, drafts, cheques for any
number of times in a particular day. The bank therefore does not pay any interest
on current deposit while on the other hand some banks charge for incidental
charges on such account.
For opening of a current account minimum deposit of taka 1000/= is required.

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3.4.1.1.1 Documentation for Opening a Current Account
The following documentation for opening a current account:
For Proprietorship:
 Up-to-date copy of trade license,
 Introducer of a CD account holder,
 Two copies of passport size photographs of account holder,
 Seal,
 TIN,
 VAT certificate
For Partnership:
 Up to date copy of trade License,
 Introducer of a CD account holder,
 Two copies of passport size photographs of account holder,
 Photocopy of partnership Deed,
 Notarized by Notary Public,
 Account agreement (MF-06) and letter of partnership (MF-07),
 Seal,
 TIN,
 VAT certificate
For Private Limited Company:
 Up-to-date copy of trade license,
 Two copies of passport size photographs of account holder,
 Certified copy of Memorandum and Articles of Association,
 Signed and sealed by the managing Director,
 Photocopy of the certified of Incorporation,
 List of directors as per return of joint stock company with signature,
 Seal of each operating persons,
 Particulars of Directors,
 Resolution for opening account with the bank.

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For Public Limited Company:
 Two copies of passport size photographs of account holder,
 Certified copy of Memorandum and Articles of Association,
 Signed and sealed by the managing Director,
 Photocopy of the certified of Incorporation,
 Seal of each operating persons,
 Particulars of Directors, Resolution for opening account with the bank,
 Certificate of commencement of business,
 List of directors as per return of joint stock company with signature.
For Societies, Clubs, and Associations etc.:
 Registration from the concerned authority,
 By laws/ rules and regulations/ constitutions duly signed and sealed by
chairman,
 Resolution for opening account with the bank,
 Introducer of a CD account holder,
 Seal of each operating persons.
3.4.1.1.2 Formalities for Opening a Current Account
1. Application on the Prescribed Form
The person willing to open a current account with the bank has to make application
in the prescribed form. This form must be properly filled up and signed by the
applicants.
2. Introduction to the Applicant
The applicant also required to furnish in the application form the names of the
referees from whom the banker may make inquiries regarding the character,
integrity and respectability of the applicants. In most cases the introduction is done
by the customer of the bank or some other person knows to the bank by signing on
the application form with his/her account number (if any).

30 | P a g e
3. Specimen signature
Every customer is required to supply to his banker with one or more specimens of
his/her signature. These signatures are taken on cards, which are preserved by the
banker, and his signature of the account holder on the cheques is compared with the
Specimen signatures.
4. Opening and operating the account
After the above formalities are over, the banker opens an account in the name of
applicant. Generally the minimum amount to be deposited initially is tk. 1000/- for
opening a current account.
Then the bank provides the customer with:
I. A pay in slip/deposit book
With a view of facilitate the receipt of credit items paid in by a customer, the
bank will provide him/her pay in slip either loose or in a book forms. The
customer has to fill up the pay in slip at the time of depositing the money with
the bank. The cashier with his/her initials and stamps will return the counter foil
to the customer on the receipt of the money.
II. Cheque Book
To facilitate withdrawals and payments to third parties by the customer, the
bank will also provide a cheque book to the customer. But it is noted that to get
a cheque book, the customer has to dully fill up the cheque requisition slip to
the banker.
3.4.1.2 Savings Deposit (SB Account)
A savings account is meant for the people of the lower and middle classes who wish to
save a part of their incomes to meet their future need and intend to earn an income from
their savings. It aims to encouraging savings of non-trading persons, institutions,
society and clubs etc. by depositing small amount of money in the bank. Both the
elements of time and demand deposit are present in this account.
Savings Bank Account can be opened in any branch of Agrani Bank by any
Bangladeshi citizen in the name of an individual or a group of individuals which can be
operated singly or jointly.

31 | P a g e
Documents Require:
 Two copies of passport size photographs of account holder.
 Photograph of the nominee
 Photocopy of passport (First four pages)
 Introducer’s reference
 Employer certificate
Requirements for opening a Savings Bank Account
 Account Opening Form to be duly filled out and submitted to a chosen branch
of Agrani Bank along with three passport sized copies of the applicant's recent
photograph duly attested by an introducer who must be an Account Holder of
any Branch of Agrani Bank. Attested copy of Bangladesh Passport of the
applicant may also serve as an Introducer.
 An initial deposit of Tk. 100/- is required for opening of the A/c.
 Minimum balance of Tk. 50/- to be maintained in the A/c.
 A Savings Bank Account may also be opened in the name of a minor which has
to be operated by the minor's guardian.
 An account in the name of an illiterate person can also be opened which is to be
operated by the Account Holder's thumb impression. For each and every
transaction of the Account the illiterate Account Holder has to present
himself/herself before the concerned Branch officials.
 All required information as per terms mentioned in the Account Opening Form.
 Interest for the Account is applied in June and December on monthly product
basis.
 An amount of Tk. 20,000/- or 25% of the balance, whichever is lower, can be
withdrawn at a time from the account; two withdrawals per week are
permissible. Otherwise, the Account is deprived of interest accrued in the month
when the permissible provisions are not complied by.

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3.4.1.3 Fixed or Time Deposit (FDR)
Opening a Fixed Deposit Account for different terms with any Branch of Agrani Bank
Limited is very simple. Any individual or a group of individuals can step into any
Branch of Agrani Bank Limited, fill out a prescribed form, handover cash or easily
cashable instrument of any amount and leave the Branch with a Fixed Deposit Receipt.
The interest rates followed by Agrani Bank Ltd for Fixed Deposit Account are-
Term Deposit Accounts - Fixed Deposit Receipt (FDR)
For 3 months & above, but less than 6 months 4.50%
For 6 months & above, but less than 1 year 4.75%
For 1 year & above, but less than 2 years 5.00%
3.4.1.4 Other Accounts
 Special Notice Time Deposit (SNTD)
 Agrani Bank Pension Scheme (APS)
 Agrani Bank Bishesh Shanchay Scheme (ABS)
 Students Savings A/C (School Banking)
 Ten Taka Farmers A/C
3.4.2 Remittance
Remittance of funds is ancillary services of ABL. It aids to remit fund from one place
to another place on behalf of its customers as well as non- customers of Bank. ABL has
its branches in the major cities of the country and therefore, it serves as one of the best
mediums for remittance of funds from one place to another.
Professional attitude, time bund payment facility & technological support in foreign
remittance business make our bank first among the state owned banks and second
among all banks in Bangladeshi market for consecutive five years. Updated technology,
on-line remittance management system & spot cash remittance facility are playing key
role to our remittance flow. To keep it up, attention has been given on specialized
customer service & techno based distribution system.

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Remittance Scenario of Bangladesh from 2012 to 2016: Million USD
Year Total Remittance ABL’s share Percentage
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%
2016 13,603.98 1535.26 11.29%
Fig 3.1: Remittance Scenario of Bangladesh
Instruments used by Agrani Bank Ltd.
The main instruments used by Agrani Bank Ltd.:
I. Payment Order Issue/Collection
II. Demand Draft Issue/Collection
III. T.T. Issue/Collection
IV. Locker Service
V. Mail Transfer Advice (MTA).
0.00
5,000.00
10,000.00
15,000.00
20,000.00
Total
Remittance
ABL’s share Percentage
10.07%
11.73%
11.28%
11.09%
11.29%
Remittance Scenario of Bangladesh
2012 2013 2014 2015 2016

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3.4.2.1 Payment Order Issue/Collection
The pay order is an instrument issued by bank, instructing itself a certain amount of
money mentioned in the instrument taking amount of money and commission when it
is presented in bank. Only the branch of the bank that has issued it will make the
payment of pay order.
Issuing of Pay Order:
 Deposit money by the customer along with application form.
 Give necessary entry in the bills payable (Pay Order) register where payee’s
name, date, PO no, etc. is mentioned.
 Prepared the instrument.
 After scrutinizing and approval of the instrument by the authority, it is delivered
to customer.
 Signature of customer is taken on the counterpart.
3.4.2.2 Demand Draft Issue/Collection
The person intending to remit the money through a Demand Draft (DD) has to deposit
the money to be remitted with the commission which the banker charges for its services.
The amount of commission depends on the amount to be remitted. On issue of the DD,
the remitter does not remain a party to the instrument:
I. Drawer branch
II. Drawn branch
III. Payee.
This is treated as the current liability of the bank as the banker on the presentation of
the instrument should pay the money. The banker event on receiving instructions from
the remitter cannot stop the payment of the instrument. Stop payment can be done in
the following cases:
 Loss of draft before endorsement: In this case, “Draft reported to be lost, payee’s
endorsement requires verification” is marked.
 Loss of draft after endorsement: In this case, the branch first satisfies itself about
the claimant and the endorsement in his favor.

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3.4.2.3 Telegraphic or Telephonic Transfer (TT) Issue/Collection
This Method transfers money to one place to another place by telegraphic message. The
sender branch will request another branch to pay required money to the required payee
on demand. Generally for such kind of transfer payee should have account with the
paying bank. Otherwise it is very difficult for the paying bank to recognize the exact
payee. When sending money is urgent then the bank uses telephone for remittance. This
service is only provided for valued customers, who is very reliable and with which
banks have long standing relationship.
Telegraphic or Telephonic Transfer (TT) Issue:
 Customer fills up the TT form and pays the amount along with commission in
cash or by cheque.
 The respected officer issues a cost memo after receiving the TT form with
payment seal, then signs it and at last give it to the customer.
 Next a TT confirmation slip is issued and its entry is given in the TT issue
register.
 A test number is also put on the face of the slip. Two authorized officer signs
this slip.
 The respective officer transfers the message to the drawee branch mentioning
the amount, name of the payee, name of the issuing branch, date, test number
and his her power of attorney (P.A.) number.
 The confirmation slip is send by post.
Payment Process of TT:
 Test confirmation
 Confirm issuing branch
 Confirm payee’s account.
 Confirm amount
 Make payment
 Advice sends to the Head Office for reconciliation.

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3.4.2.4 Locker Service
Agrani Bank Ltd., Local Office, Dhaka is providing facility of locker service for the
purpose of safeguarding the valuable property of customers. The person or organization
that has any account in bank branch can enjoy this 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.
For enjoying this service, clients have to give charge:
Table 3.3: Locker and Safe charges of Agrani Bank Ltd.
3.4.2.5 Mail Transfer Advice (MTA)
Where the remitter desires the banker to remit the funds to the payee instead of
purchasing a draft himself the banker does it through a mail transfer advice. The payee
must have an account with the paying office as the amount remitted in such a manner
is meant for credit to the payee’s account and not for cash payment. It is the least used
technique of Agrani Bank Ltd. for transferring fund. Where there is no telex machine
or telephone line then this method is used.
3.4.3 Clearing
Clearing house is an assembly of the locally operating scheduled banks for exchange
of cheques, drafts, pay orders and other demand instruments drawn on each other and
received from their respective customers for collection. The house meets at the
appointed hour on all working days under the supervision of two central bank officers
Nature of
Service
Nature of
Charges
Rate of Charges
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)

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or its agent as the case may be, and works within the regulations framed therefore on
the basis of prevailing banking practices. In Bangladesh, clearing house sites at
Bangladesh bank where there is no office of the Bangladesh bank, Sonali bank acts as
agent of Bangladesh bank.
There are mainly two types of clearing systems in Bangladesh, such as:
I. Internal clearing or inter branch clearing or inward clearing
II. External clearing or inter banks clearing or outward clearing.
3.4.4 Cash
The cash section of any branch plays very significant role in Banking Section. Because,
it deals with most liquid assets the ABL, Local Office has an equipped cash section.
This section receives cash from depositors and pay cash against cheque, draft, PO, and
pay in slip over the counter. Every Bank must have a cash counter where customer
withdrawn and deposit their money. When the valued client’s deposit their money at
the cash counter they must have to full fill the deposit slip his/her own, then they sing
as the depositor option’s then they deposit their money through cash officer at the cash
counter.
3.4.5 Accounts Department
Accounts Department is play most vital role in Banking. Accounts Department is a
department with which each and every department is related. It records the profit & loss
A/C and statement of assets and liabilities by applying “Golden Rules” of book-
keeping. The functions of it are theoretical & computerized based. ABL Local Office
records its accounts daily, Weekly and monthly every record.

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3.5 Loans and Advances
A loan is a debt provided by an entity (organization or individual) to another entity at
an interest rate, and evidenced by a note which specifies, among other things, the
principal amount, interest rate, and date of repayment. A loan entails the reallocation of
the subject asset(s) for a period of time, between the lender and the borrower.
In a loan, the borrower initially receives or borrows an amount of money, called the
principal, from the lender, and is obligated to pay back or repay an equal amount of
money to the lender at a later time.
1. Loan is generally provided at a cost, referred to as interest on the debt, which
provides an incentive for the lender to engage in the loan. In a legal loan, each
of these obligations and restrictions is enforced by contract, which can also
place the borrower under additional restrictions known as loan covenants.
Although this article focuses on monetary loans, in practice any material object
might be lent.
2. Advance is a “credit facility” granted by the bank. Banks grant advances largely
for short-term purposes, such as purchase of goods traded in and meeting other
short-term trading liabilities. There is a sense of debt in loan, whereas an
advance is a facility being availed of by the borrower. However, like loans,
advances are also to be repaid. Thus a credit facility- repayable in installments
over a period is termed as loan while a credit facility repayable within one year
may be known as advances.
3.6 Types of Loan and Advance
Bank is a set-vice as well as profit oriented organization. So, making of loan and
advance have always been prominent and profitable function of a bank. Sanctioning
credit to customers and others out of the funds at its disposal is one of the principal
services of a modern bank. Advances made in bank in different natures, such as, Cash
Credit (CC), Overdrafts, Small-loans, Demand loans, Bills purchased and discounted,
Home building loans and staff loans etc. Bank deals with the money from the deposits
repayable on demand.

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3.6.1 Cash Credit (CC)
A cash credit is an arrangement by which the customer is allowed to borrow money up
to a certain limit. This is a parliament arrangement and the customer need not draw the
sanctioned amount at once, but draw the amount as and when required. He can put back
any surplus amount, which he may find with him. Thus, Cash Credit is an active and
continuous process in which deposits and withdrawals going on frequently. Interest is
charged only for the amount withdrawn and not for the whole amount charged. It is
operated in the same way as a current account on which an overdraft has been
sanctioned. Cash Credit accounts are, however, maintained in a separate ledger.
Primary securities under consideration in case of cash credit are goods, products and
merchandise. This is most favorite of borrowing by large commercial and industrial
concern. On account of the advantage that a customer need not borrow at once. He can
either draw or repay; in whole amount or in part, the amount advanced at any time to
suit his convenience. Cash Credit are of two types, such as:
1) Cash Credit Hypothecation
2) Cash Credit Pledge
3.6.2 Overdraft
An overdraft occurs when money is withdrawn from a bank account and the available
balance goes below zero. In this situation the account is said to be "overdrawn". An
overdraft allows the individual to continue withdrawing money even if the account has
no funds in it. Basically the bank allows people to borrow a set amount of money. If
there is a prior agreement with the account provider for an overdraft, and the amount
overdrawn is within the authorized overdraft limit, then interest is normally charged at
the agreed rate. If the negative balance exceeds the agreed terms, then additional fees
may be charged and higher interest rates may apply.
From customer’s point of views, this arrangement is advantageous, as he is requires to
pay interest on the amount actually he used by him. Overdraft facilities are generally
granted businessmen for expansion their business against securities of stock in trade,
shares, debentures, government promissory notes, fixed deposit, life insurance policies,
gold and gold ornaments etc.

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3.6.3 Small Loan
Small loan accounts in its present form of fluctuating. It refers to the lending allowed
to small traders, cottage industries, small-scale industries and self-employed persons.
The maximum ceiling for this loan is at present TK. 5000/- for small traders and self-
employed persons. TK. 2, 00,000/- for cottage industries and small-scale industries.
3.6.4 Demand Loan
Loan (such as an overdraft) with or without a fixed maturity date, but which can be
recalled anytime (often on a 24-hour notice) by the lender and must be paid in full on
the date of demand is called demand loan. Also, the borrower can pay off a demand
loan at any time without incurring early-payment penalties. It is also called call loan or
money at call. A demand loan is a loan that the lender may require the borrower (a
brokerage house) to repay at any time. It is a loan that must be paid on demand from
the lender. Demand loans are often used to fund margin accounts; alternatively, they
are common for personal loans with no set maturity.
3.6.5 Staff Loan
Bank provides advances to the staff for buying motor-cycles and motor-cars, for
wedding their sons or daughters etc. It is called staff loan. Bank provides this advance
at a little or no interest. This benefit is generally calculated as the interest on the loan at
a prescribed rate, minus any interest actually paid on the loan within the year or 30 days
after year-end.
3.6.6 Home Loan
Home Loan is a Secured loan offered against the security of a house/property which is
funded by the bank’s loan, the property could be a personal property or a commercial
one. The Home Loan is a loan taken by a borrower from the bank issued against the
property/security intended to be bought on the part by the borrower giving the banker
a conditional ownership over the property i.e. if the borrower is failed to pay back the
loan, the banker can retrieve the lent money by selling the property.

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3.6.7 Crop Loan
Agricultural loans help farmers run their farms more efficiently. It can be difficult to
keep up with all of the costs associated with running a farm, so farmers need low interest
agricultural loan to help them stay afloat.
Fortunately, the government often steps in with low interest loans and other subsidies
that help farmers turn a profit. Agrani Bank provides Crop Loan to farmers at a low
interest rate.
3.7 Interest Rate
Loan sector Interest Rate
Crop Loan 9%
Fishery Loan 9%
Poverty Alleviation Loan 9%
SME & Micro Credit 9%-11%
Large & Medium Enterprise Loan 11%
Import Finance 12%
Export Finance 7%-13%
Demand Loan 11%
General Home Loan 10%
Commercial Home Loan 11%
Commercial Loan 11%
Cash Credit (CC) 11%
Overdraft 12%
Table 3.4: Interest Rate of Agrani Bank Ltd. (2016)

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3.8 Total Loan Sanction
The total loans and advances as on 31 December 2016 was Tk. 26,587.11 crore as
against Tk.24,480.18 crore at the end of previous year. The advance portfolio of the
Bank is well diversified and covers funding to a wide spectrum of business and
industries including agro-based and agro-processing, ship building, ship breaking, steel
& engineering, paper & paper products, chemicals, construction, real estate and loans
under consumers’ credit schemes, various trading businesses, women entrepreneurs
loan and Agrani Bidesh Jawar Loan.
Sector wise Loan’s amount
Taka in crore
Sector-wise Loans 2015 2016
Agriculture and Fishery 1,187.47 1,331.02
Jute and Jute goods 980.00 960.17
Transport, Storage & Communication 345.66 370.72
Ship Breaking 119.35 147.78
Textile & Readymade Garments 2,035.92 2,604.25
Food and Allied Industry 280.00 471.41
Construction & Engineering 106.91 552.22
Pharmaceuticals & Chemicals 151.79 214.77
Leather 383.87 399.31
Power & Energy 904.68 748.68
Professional and Services 160.51 102.49
Housing 335.82 816.47
Wholesale/ Retail Trading 2,730.01 3,728.69
Staff Loan 2,908.47 3,995.74
Others 11,849.72 10,143.39
Total 24,480.18 26,587.11
Table 2.1: Sector wise loan amount of Agrani Bank Ltd. (2015-2016)

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Chapter Four:

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4.1 Financial Performance Analysis
Financial performance analysis (or financial analysis) is the process of reviewing and
analyzing a company's financial statements to make better economic decisions. These
statements include the income statement, balance sheet, statement of cash flows, and
a statement of changes in equity.
Financial performance analysis is a method or process involving specific techniques for
evaluating risks, performance, financial health, and future prospects of an organization.
Financial statements record financial data; however, this information must be evaluated
through financial statement analysis to become more useful to investors, shareholders,
managers and other interested parties.
Financial statement analysis allows analysts to identify trends by comparing ratios
across multiple time periods and statement types. These statements allow analysts to
measure liquidity, profitability, company-wide efficiency and cash flow. There are
three main types of financial statements:
1. Balance sheet,
2. Income statement and
3. Cash flow statement.
Each financial statement provides multiple years of data. Used together analysts can
track performance measures across financial statements using several different methods
for financial statement analysis, including vertical and horizontal analysis.
1. Vertical analysis is when each line item on the financial statement is listed as
a percentage of another.
2. Horizontal analysis compares line items in each financial statement against
previous time periods.

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4.2 Financial Performance of Agrani Bank Limited (2015-
2016)
Taka in crore
Particulars Years 2015 2016 Change
Performance during the year
Interest revenue 2,363.54 2,144.61 (9.26%)
Interest cost 2,294.28 2,061.96 (10.13%)
Net interest revenue 69.26 82.66 19.35%
Income from investment 1495.24 1,561.18 4.40%
Other operating revenue 427.07 435.80 2.04%
Total operating revenue 1991.57 2,079.64 4.42%
Salary & allowances 695.84 1,007.04 44.72%
Other operating cost 418.25 517.52 23.73%
Total operating cost 1114.09 1524.56 36.84%
Profit before amortization, provision and tax 877.48 555.08 (36.74%)
Amortization ( valuation adjustment) 132.95 132.95 -
Provision for loans and advances 555.79 816.57 46.92%
Other provision 248.63 356.61 43.43%
Profit before tax (59.89) (751.05) (1154.05%)
Provision for tax (differed tax assets adjusted) (125.20) (54.04) (56.83%)
Net profit after tax 65.31 (697.01) (1167.23%)
At the end of the year
Paid up capital 2,072.29 2,072.29 -
Total shareholders’ equity 4,467.59 3,657.68 (18.13%)
Deposits 43,997.55 49,405.01 12.29%
Total contingent liabilities and commitments 9,006.88 8,390.23 (6.85%)
Loans and advances 24,480.18 26,587.11 8.61%
Amount of classified loans 4,640.41 6,804.49 46.64%
Provision kept against classified loans 2,244.52 3,057.45 36.22%
Investments 20,569.75 22,753.51 10.62%
Interest earning assets 26,265.38 29,114.33 10.84%
Non interest earning assets 30,269.77 33,242.42 9.82%
Fixed assets 1,594.95 1,577.93 (1.07%)
Total assets 56,535.15 62,356.75 10.30%
Table 4.1: Financial Performance of Agrani Bank Ltd. (2015-2016)

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4.2.1 Total Operating Revenue
Operating revenue is revenue (sales) generated from a company's day-to-day business
activities, which means revenue posted from selling the company’s products and
services. A bank, for example, produces revenue through customer services and
consulting with clients. Operating revenue is important for a business to remain viable,
because these sales are sustainable from one year to the next.
Total Operating Revenue of Agrani Bank Ltd. Taka in crore
Particulars Years 2012 2013 2014 2015 2016
Total Operating
Revenue
1,709.04 1,845.29 1,949.96 1991.57 2,079.64
Changes (%) (18.80%) 7.97% 5.67% 2.13% 4.42%
Table 4.2: Total Operating Revenue of Agrani Bank Ltd. (2012-2016)
Fig 4.1: Total Operating Revenue of Agrani Bank Ltd. (2012-2016)
Interpretation:
From 2012 to 2016 total operating revenue of Agrani Bank Ltd. increases gradually. In
2012 operating revenue decrease by -18.80%. But in 2013 operating revenue level
increase in positively 7.97%.
-25.00%
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
2012 2013 2014 2015 2016
TAKAINCRORE
Total Operating Revenue of Agrani Bank Ltd.
Total Operating Revenue Changes (%)

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4.2.2 Total Operating Expenditure
An operating expense is an expense a business incurs through its normal business
operations. Often abbreviated as OPEX, operating expenses include rent, equipment,
inventory costs, marketing, payroll, insurance and funds allocated toward research and
development. One of the typical responsibilities that management must contend with is
determining how low operating expenses can be reduced without significantly affecting
a firm’s ability to compete with its competitors.
Total Operating Expenditure of Agrani Bank Ltd. Taka in crore
Total Operating
Expenditure
702.30 781.36 876.01 1114.09 1524.56
Changes (%) 11.41% 11.25% 12.11% 27.18% 36.84%
Table 4.3: Total Operating Expenditure of Agrani Bank Ltd. (2012-2016)
Fig 4.2: Total Operating Expenditure of Agrani Bank Ltd. (2012-2016)
Interpretation:
From 2012 to 2016 total operating expenditure of Agrani Bank Ltd. increases
continuously. In 2012 to 2014 total operating expenditure increase minimum level
11.41% to 11.25% to 12.11%. But in 2015 and 2016 total operating expenditure level
increase 27.18% and 36.84%.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
0
200
400
600
800
1000
1200
1400
1600
1800
2012 2013 2014 2015 2016
Takaincrore
Total Operating Expenditure of Agrani Bank Ltd.
Total Operating Expenditure Changes (%)

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4.2.3 Net Interest Income
Net interest income is the difference between the revenue that is generated from a
bank's assets and the expenses associated with paying out its liabilities. A typical bank's
assets consist of all forms of personal and commercial loans, mortgages and securities.
The liabilities are the customer deposits. The excess revenue that is generated from the
interest earned on assets over the interest paid out on deposits is the net interest income.
Net interest income of Agrani Bank Ltd. Taka in crore
Net Interest
Income
398.27 126.53 118.59 69.26 82.66
Changes (%) (61.95%) (68.23%) (6.28%) (41.60%) 19.35%
Table 4.4: Net Interest Income of Agrani Bank Ltd. (2012-2016)
Fig 4.3: Net Interest Income of Agrani Bank Ltd. (2012-2016)
Interpretation:
From 2012 to 2016 Net interest income of Agrani Bank Ltd. decrease unexpectedly. In
2012 and 2013 Net interest income decrease by -61.95% and -68.23%. 2014 to 2015
Net interest income also decrease but at minimum level. In 2016 Net interest income
increase from previous year 2015.
-80.00%
-70.00%
-60.00%
-50.00%
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
0
50
100
150
200
250
300
350
400
450
2012 2013 2014 2015 2016
TAKAINCRORE
Net interest income of Agrani Bank Ltd.
Net Interest Income Changes (%)

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4.2.4 Net Operating Profit
Operating income is an accounting figure that measures the amount of profit realized
from a business's operations, after deducting operating expenses such as cost of goods
sold (COGS), wages and depreciation. Operating income takes a company's gross
income, which is equivalent to revenue minus COGS, and subtracts all operating
expenses and depreciation. A business's operating expenses are costs incurred
from operating activities and include items such as office supplies, heat and electricity.
Net Operating income of Agrani Bank Ltd. Taka in crore
Operating Profit 1,006.74 1,063.93 1,073.95 877.48 555.08
Changes (%) (31.71%) 5.68% 0.94% (18.29%) (36.74%)
Table 4.5: Net Operating Income of Agrani Bank Ltd. (2012-2016)
Fig 4.4: Net Operating Income of Agrani Bank Ltd. (2012-2016)
Interpretation:
From 2012 to 2014 Net operating income of Agrani Bank Ltd. increase. But 2015 and
2016 Net operating income decrease by -18.29% and -36.74%.
-40.00%
-35.00%
-30.00%
-25.00%
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
0.00
200.00
400.00
600.00
800.00
1,000.00
1,200.00
2012 2013 2014 2015 2016
Takaincrore
Net Operating income of Agrani Bank Ltd.
Operating Profit Changes (%)

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4.2.5 Net profit after tax
Net income after taxes (NIAT) is an accounting term, most often found in a
company's annual report, that is meant to show the company's definitive "bottom line"
for the accounting period. In other words, it shows what the company earned after all
its expenses, charge-offs, depreciation and taxes have been subtracted. This calculation
is usually shown as both a total dollar amount and a per share calculation.
Net Operating Profit after Tax of Agrani Bank Ltd. Taka in crore
Net profit after tax (1,862.06) 904.89 198.61 65.31 (697.01)
Changes (%) (844.85%) 148.60% (78.05%) (67.12%) (1167.23%)
Table 4.6: Net Operating Profit/ Loss after Tax of Agrani Bank Ltd. (2012-2016)
Fig 4.5: Net Operating Profit/ Loss after Tax of Agrani Bank Ltd. (2012-2016)
Interpretation:
From 2012 to 2016 Net operating Profit after Tax of Agrani Bank Ltd. fluctuate
dramatically. Where 2012 and 2016 Net operating Profit after Tax are negative, which
shows net operating loss after tax.
-1400.00%
-1200.00%
-1000.00%
-800.00%
-600.00%
-400.00%
-200.00%
0.00%
200.00%
400.00%
-2,500.00
-2,000.00
-1,500.00
-1,000.00
-500.00
0.00
500.00
1,000.00
1,500.00
2012 2013 2014 2015 2016
Takaincrore
Net Operating Profit after Tax of Agrani Bank
Ltd.
Net profit after tax Changes (%)

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4.2.6 Total Assets
Bank capital is the difference between a bank's assets and liabilities, and it represents
the net worth of the bank or its value to investors. The asset portion of a bank's capital
includes cash, government securities and interest-earning loans, such as mortgages,
letters of credit and inter-bank loans, while the liabilities section of a bank's capital
includes loan-loss reserves and any debt it owes. A bank's capital can be thought of as
the margin to which creditors are covered if the bank liquidates its assets.
Total Assets of Agrani Bank Ltd. Taka in crore
Total Assets 37,871.64 44,415.66 49,487.08 56,535.15 62,356.75
Changes (%) 8.57% 17.28% 11.41% 14.24% 10.30%
Table 4.7: Total Assets of Agrani Bank Ltd. (2012-2016)
Fig 4.6: Total Assets of Agrani Bank Ltd. (2012-2016)
Interpretation:
From 2012 to 2016 Total Assets of Agrani Bank Ltd. increase continuously. In 2012
Total Assets of Agrani Bank Ltd. is Tk.62, 356.75 crore.
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
70,000.00
2012 2013 2014 2015 2016
TAKAINCRORE
Total Assets of Agrani Bank Ltd.
Total Assets Changes (%)

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4.2.7 Ratio Analysis of Agrani Bank Ltd. (2012-2016)
4.2.7.1 Liquidity Ratio
 Current Ratio
Current Ratio The current ratio is a liquidity ratio that measures a company's ability to
pay short-term and long-term obligations. To gauge this ability, the current ratio
considers the current total assets of a company (both liquid and illiquid) relative to that
company’s current total liabilities.
Current ratio of Agrani Bank Ltd. (2012-2016) are given:
ParticularsYears 2012 2013 2014 2015 2016
Current Ratio 1.60 2.21 1.19 1.17 1.08
Table 4.8: Current Ratio of Agrani Bank Ltd. (2012-2016)
Fig 4.7: Current Ratio of Agrani Bank Ltd. (2012-2016)
Interpretation:
From 2012 to 2016 Current Ratio of Agrani Bank Ltd. are not stable. In past five years
only 2013 is most preferable, where current ratio is 2.21. But in 2016 the ratio is much
worse than before.
0
0.5
1
1.5
2
2.5
2012
2013
2014
2015
2016
Current ratio of Agrani Bank Ltd. (2016-2012)

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4.2.7.2 Profitability
 Net profit ratio:
Net profit ratio expresses the relationship between net profit after taxes and sales. This
ratio is a measure of the overall profitability net profit is arrived at after taking into
account both the operating and non-operating items of incomes and expenses. The ratio
indicates what portion of the net sales is left for the owners after all expenses have been
met.
The Net profit ratio of Agrani Bank Ltd. (2012-2016) are given below-
Net profit ratio (50.32%) 22.00% 4.74% 1.52% (16.83%)
Table 4.9: Net Profit Ratio of Agrani Bank Ltd. (2012-2016)
Fig 4.8: Net Profit Ratio of Agrani Bank Ltd. (2012-2016)
Interpretation:
From 2012 to 2016 Net Profit Ratio of Agrani Bank Ltd. are not stable. In past five
years 2012 and 2016 is most worse position, where Net Profit Ratio are -50.32% and
-16.83%.
-60.00%
-50.00%
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
2012 2013 2014 2015 2016
Net profit ratio -50.32% 22.00% 4.74% 1.52% -16.83%
Net profit ratio

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 Return on investment (ROI):
A performance measure used to evaluate the efficiency of an investment or to compare
the efficiency of a number of different investments. ROI measures the amount
of return on an investment relative to the investment’s cost. To calculate ROI, the
benefit (or return) of an investment is divided by the cost of the investment, and the
result is expressed as a percentage or a ratio.
The Return on investment (ROI) of Agrani Bank Ltd. are given below-
Return on
investment 8.70% 7.43% 8.54% 7.27% 6.86%
Table 4.10: Return on Investment of Agrani Bank Ltd. (2012-2016)
Fig 4.9: Return on Investment of Agrani Bank Ltd. (2012-2016)
Interpretation:
From 2012 to 2016 Return on Investment (ROI) of Agrani Bank Ltd. are not stable. In
year 2014 Return on Investment increase from 7.43% to 8.54%, but in 2015 it’s again
decrease to 7.27% and year 2016 the Return on Investment is 6.86%, which shown
return is low as its expectation from its investment.
8.70%
7.43%
8.54%
7.27%
6.86%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
2012 2013 2014 2015 2016
Return on investment
Return on investment Linear (Return on investment)

55 | P a g e
 Return on assets (ROA):
Return on assets (ROA) is an indicator of how profitable a company is relative to its
total assets. ROA gives a manager, investor, or analyst an idea as to how efficient a
company's management is at using its assets to generate earnings.
The Return on Assets (ROA) of Agrani Bank Ltd. (2012-2016) are given below-
Return on Assets (4.92%) 2.04% 0.40% 0.12% 1.12%
Table 4.11: Return on Assets of Agrani Bank Ltd. (2012-2016)
Fig 4.10: Return on Assets of Agrani Bank Ltd. (2012-2016)
Interpretation:
Last four years 2013 to 2016 Return on Assets (ROA) are much better position than
2012 where the ROA was -4.92%. In 2016 the return level increase to 1.12%.
-5.00% -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00%
Return on Assets
-4.92%
2.04%
0.40%
0.12%
1.12%
Return on Assets (ROA) of Agrani Bank Ltd.
2016 2015 2014 2013 2012

56 | P a g e
 Return on Equity (ROE):
Return on equity (ROE) is the amount of net income returned as a percentage of
shareholders equity. Return on equity measures a corporation's profitability by
revealing how much profit a company generates with the money shareholders have
invested.
The Return on Equity (ROE) of Agrani Bank Ltd. (2012-2016) are given below-
Return on Equity (259.94%) 25.39% 5.02% 1.46% (19.06%)
Table 4.12: Return on Equity of Agrani Bank Ltd. (2012-2016)
Fig 4.11: Return on Equity of Agrani Bank Ltd. (2012-2016)
Interpretation:
In the year of 2012 the Return on Equity was -259.94%, but in 2013 its goes to positive
25.39%. In 2016 the Return on Equity also goes down to -19.06%.

57 | P a g e
4.2.7.3 Leverage Position
 Debt to Total asset Ratio:
Total debt to total assets is a leverage ratio that defines the total amount of debt relative
to assets. This enables comparisons of leverage to be made across different companies.
The higher the ratio, the higher the degree of leverage, and consequently, financial risk.
This is a broad ratio that includes long-term and short-term debt (borrowings maturing
within one year), as well as all assets – tangible and intangible.
The Debt to Total asset Ratio of Agrani Bank Ltd. (2012-2016) are given below-
Total Debt to
Total Assets
0.98 0.92 0.92 0.92 0.94
Table 4.13: Total Debt to Total Assets Ratio of Agrani Bank Ltd. (2012-2016)
Fig 4.12: Total Debt to Total Assets Ratio of Agrani Bank Ltd. (2012-2016)
Interpretation:
In the past five years 2012 to 2016 Total debt Total Assets Ratio are not suitable for the
Agrani Bank Ltd. In 2012 and 2016 are nearly as preferable.
2012 2013 2014 2015 2016
0.98
0.92 0.92 0.92
0.94
0.89
0.9
0.91
0.92
0.93
0.94
0.95
0.96
0.97
0.98
0.99
0
1E+11
2E+11
3E+11
4E+11
5E+11
6E+11
7E+11
1 2 3 4 5
Total Debt to Total asset Ratio
ParticularsYears Total Debt Total Assets Total Debt to Total Assets

58 | P a g e
4.2.7.4 Market Prospect ratios
 Earnings per share (EPS):
Earnings per share (EPS) is the portion of a company's profit allocated to each
outstanding share of common stock. Earnings per share serves as an indicator of a
company's profitability.
The Earnings per share (EPS) of Agrani Bank Ltd. are given below-
Earnings per share (187.84) 91.28 9.58 3.15 (33.63)
Table 4.14: Earnings per Shares (EPS) of Agrani Bank Ltd. (2012-2016)
Fig 4.13: Earnings per Shares (EPS) of Agrani Bank Ltd. (2012-2016)
Interpretation:
In the past five years 2012 to 2016 Earnings per Share (EPS) of Agrani Bank Ltd. are
fluctuate every year. In 2012 and 2016 are shown the negative position of EPS. In year
2013 the eps was most suitable position at Tk. 91.28 per share. In 2016 it goes down to
Tk. -33.63 per share.
-200 -150 -100 -50 0 50 100
2012
2013
2014
2015
2016
-187.84
91.28
9.58
3.15
-33.63
Earnings per share (Tk.)

59 | P a g e
 Net asset value per share (NAVPS):
The net asset value per share (NAVPS), also referred to as the book value per share, is
an expression for net asset value that represents the value per share of a mutual fund,
exchange-traded fund (ETF) or a closed-end fund. It is calculated by dividing the total
net asset value of the fund or company by the number of shares outstanding.
The Net asset value per share (NAVPS) of Agrani Bank Ltd. are given below-
Net asset value
per share
72 172 191 216 177
Table 4.15: Net Assets Value per Share of Agrani Bank Ltd. (2012-2016)
Fig 4.14: Net Assets Value per Share of Agrani Bank Ltd. (2012-2016)
Interpretation:
In the past four years 2012 to 2015 Net Assets Value per Share (NAVPS) increase
gradually. Where in 2013 NAVPS increase from Tk. 72 to Tk. 172 per share. It also
continue to next two years Tk. 192 and Tk. 261 per share. But in 2016 it decrease to
Tk. 177 per share.
0
50
100
150
200
250
2012
2013
2014
2015
2016
72
172
191
216
177
Net Assets Value Per Share (Tk.)
Net asset value per share

60 | P a g e
4.2.7.5 Assets – Quality Indicators
 Loans & advances to deposit ratio
The loan-to-deposit ratio (LTD) is a commonly used statistic for assessing a bank's
liquidity by dividing the bank's total loans by its total deposits. This number is
expressed as a percentage. If the ratio is too high, it means that the bank may not have
enough liquidity to cover any unforeseen fund requirements, and conversely, if the ratio
is too low, the bank may not be earning as much as it could be.
The Loans & advances to deposit ratio of Agrani Bank Ltd. are given below-
Loans & advances
to Deposit ratio
72.72% 58.21% 63.21% 55.64% 53.81%
Table 4.16: Loan and Advances to Deposit Ratio of Agrani Bank Ltd. (2012-2016)
Fig 4.15: Loan and Advances to Deposit Ratio of Agrani Bank Ltd. (2012-2016)
 Loans & advances to total assets ratio
The loans to assets ratio measures the total loans outstanding as a percentage of total
assets. The higher this ratio indicates a bank is loaned up and its liquidity is low. The
higher the ratio, the more risky a bank may be to higher defaults.
72.72%
58.21%
63.21%
55.64%
53.81%
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8
2012
2013
2014
2015
2016
LOANS & ADVANCES TO DEPOSIT RATIO
Loans & advances to Deposit ratio

61 | P a g e
The Loans & advances to Assets ratio of Agrani Bank Ltd. are given below-
Loans & advances
to Assets ratio 56.15% 45.70% 47.50% 43.30% 42.63%
Table 4.17: Loan and Advances to Assets Ratio of Agrani Bank Ltd. (2012-2016)
Fig 4.16: Loan and Advances to Assets Ratio of Agrani Bank Ltd. (2012-2016)
4.2.7.6 Capital Adequacy Ratio
The capital adequacy ratio (CAR) is a measure of a bank's capital. It is expressed as a
percentage of a bank's risk weighted credit exposures.
Also known as capital-to-risk weighted assets ratio (CRAR), it is used to protect
depositors and promote the stability and efficiency of financial systems around the
world. Two types of capital are measured: Tier one capital, which can absorb losses
without a bank being required to cease trading, and Tier two capital, which can absorb
losses in the event of a winding-up and so provides a lesser degree of protection to
depositors.
 Tier 1 Capital
Tier 1 capital, used to describe the capital adequacy of a bank, is core capital that
includes equity capital and disclosed reserves. Equity capital is inclusive of instruments
56.15%
45.70%
47.50%
43.30%
42.63%
0 0.1 0.2 0.3 0.4 0.5 0.6
2012
2013
2014
2015
2016
Loans & Advances to Assets ratio
Loans & advances to Assets ratio

62 | P a g e
that cannot be redeemed at the option of the holder. Tier 1 capital is essentially the most
perfect form of a bank’s capital — the money the bank has stored to keep it functioning
through all the risky transactions it performs, such as trading/investing and lending.
 Tier 2 capital
Tier 2 capital is the secondary component of bank capital, in addition to Tier 1 capital,
that makes up a bank's required reserves. Tier 2 capital is designated as supplementary
capital, and is composed of items such as revaluation reserves, undisclosed reserves,
hybrid instruments and subordinated term debt. In the calculation of a bank's reserve
requirements, Tier 2 capital is considered less secure than Tier 1 capital, and in the
United States, the overall bank capital requirement is partially based on the weighted
risk of a bank’s assets.
The capital adequacy ratio (CAR) of Agrani Bank Ltd. are given below-
Capital Adequacy Ratio (6.15%) 10.04% 10.44% 9.54% 10.03%
Tier 1 capital (6.15%) 5.67% 6.13% 6.60% 6.34%
Tier 2 capital -- 4.37% 4.31% 2.94% 3.69%
Table 4.18: Capital Adequacy Ratio of Agrani Bank Ltd. (2012-2016)
Fig 4.17: Capital Adequacy Ratio of Agrani Bank Ltd. (2012-2016)
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
2012
2013
2014
2015
2016
Capital Adequacy Ratio
Capital Adequacy Ratio Tier 1 capital Tier 2 capital

63 | P a g e
Chapter Four: Findings,
Recommendations and
Conclusion

64 | P a g e
5.1 Findings
Agrani Bank Ltd. has focused on enhancing the long term sustainability of the bank,
building value for the shareholders, employees and the wider community. Its activities
are driven by ethical business practices and sense of responsibilities to all stakeholders.
Since the start of the global economic crisis, many felt that Bangladesh will not be
adversely affected by the crisis. But now we can see that slowly and gradually we are
also getting affected. Bangladesh is captive to what transpires in international market
and economies of leading countries.
During my report preparation I have gone through several departments of General
Banking Activities and ABL’s Financial Performance have some problems from my
own practical experience as follows:
1. Heavily rely on traditional system specially in general banking department.
2. The newly prescribed account opening form is very much informative. It takes
about half an hour to properly fill in the form. When four or five people come
at the same time to account opening purpose, it is very difficult for the relevant
officer to provide satisfied service to the client.
3. According to some clients, introducer is one of the problems to open an account.
If a person who is new in the city wants to open account, it is a problem for
him/her to arrange an introducer of SB or CD account holder.
4. Lengthy process of issuing cheque book, Pay order, Bank draft cause. Job
responsibilities are not specified to each and every employee of this division.
5. Inadequate skilled manpower in Agrani Bank Ltd., because there is lack of
proper training arrangement of employees in the general banking section. For
example, most of the new recruited employees learn their job tasks by observing
their senior employee.
6. Insufficient modern sophisticated technology change such as use of new
software there are few staff who are lacking in computer knowledge and are not
efficient chough to finish every task immediately. So, before utilizing new
technology proper training should be arranged.
7. Sometime the branch’s computers remain out of order and it is also true for the
photocopiers.
8. Little Transparency and Reliability in Financial Statement.
9. Financial performance are not stable.

General Banking Activities & Financial Performance of Agrani Bank Limited

General Banking Activities & Financial Performance of Agrani Bank Limited

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