Agrani Bank Limited

Agrani Bank Limited a nationalised commercial bank (NCB) of Bangladesh established on 26 March 1972 under the Bangladesh Banks (Nationalisation) Order 1972 by taking over two abandoned Pakistani banks Habib Bank and Commerce Bank. The bank has been converted to a Public Limited Company with 100% ownership of the government and started functioning as Agrani Bank Limited (ABL) from 15 November, 2007 taking over all assets, liabilities and business of Agrani Bank on the basis of Vendors Agreement signed between the Government and the Agrani Bank. After corporatisation, the management of the bank has been given autonomy to make the bank competitive and to run its business effectively.

Indicators	2004	2005	2006	2007	2008	2009
Authorized Capital	8000	8000	8000	8000	8000	8000
Paid up Capital	2484	2484	2484	2484	2484	4968
Reserved Fund	338	338	292	160	743	1394
Deposits	125390	131020	128921	132855	146815	166284
a) Call Deposits	21144	21646	25190	76404	92694	37405
b) Term Deposits	104246	109374	103731	56451	54121	128879
Loans and Advance	95920	99404	105869	118500	113362	122236
Investment	26848	24330	22306	22199	29330	40897
Total Asset	151376	155528	154080	185739	187326	211789
Total Income	8895	10797	12331	13681	14981	16367
Total Expenditure	9770	8457	8749	8420	8651	9924
Foreign Currency Trading	114717	127472	206933	204864	211741	178011
a) Export	41971	41710	51713	48919	49538	44606
b) Import	35906	51194	115924	113431	109517	77534
c) Remittance	36840	34568	39296	42514	52686	55871
Total Manpower	12208	11938	11793	11345	10988	11443
a) officers	6563	6567	6490	6358	6299	6992
b) staff	5645	5371	5303	4987	4689	4451
Correspondent banks	397	410	416	416	383	401
Total branches (in numbers)	870	864	866	866	867	867
a) Domestic	870	864	866	866	867	867
b) Overseas	-	-	-	-	-	-
Agriculture credit
a) Loan disbursed	741	1342	924	942	1163	2452
b) Realised	859	1180	907	1135	1146	2299
Industrial Credit
a) Loan Disbursed	10526	12972	2328	1342	5602	9459
b) Realsied	8448	5359	1607	1489	3279	7561
Loan Outstanding by Sector
a) Agriculture and Fisheries	4522	5852	5499	5883	6455	7461
b) Industry	18820	19006	22763	23079	22155	27411
c) Trade and Commerce	5435	9928	12134	13107	13638	13913
d) Poverty Reduction	1885	2353	2885	3035	4131	3884

Sources  Government of Bangladesh, Ministry of Finance, Banking and Financial Institution Division, Bank o Arthik Prothisthan Samuher Karjaboli [Annual Report on Banks and Financial Institutions], 2004-05 to 2008-09 and the Agrani Bank Management, April 2010.

The management of the bank is vested in an 11-member board of directors including the managing director and CEO appointed by the government. The board of directors formulates the policy of the Bank. The managing director is the chief executive and two deputy-managing directors; seven general managers and other senior executives assist him. The general managers are in charge of the bank's branches in six administrative divisions of the country namely Dhaka, Chittagong, Khulna, Rajshahi, Sylhet and Barisal. The bank has 30 departments at its head office, including a training institute in Dhaka. Beside these, under World Bank funded Enterprise Growth and Bank Modernisation Project, there is a provision for appointing four consultants in the rank general managers in the area of credit, audit, information technology and accounts and a full time law adviser for the bank.

'In addition to traditional deposit taking in various accounts and providing loans to almost all sectors of the economy, the bank offers many other services through its schemes of school banking, inland travelers cheques, pension funds, industrial development bond and inland remittance. The bank operates some income generating and economic development projects such as the Productive Employment Project, Netrokona Integrated Agri-product and Water Management Project, IFAD Project for poverty Alleviation through Employment Creation, Kurigram Poverty Alleviation Project, Crop Intensification Project, National Micro Irrigation Development Project, Micro Entrepreneurship Development Project, and Agricultural Diversification and Intensification Project.

Agrani Bank Limited has set up a countrywide network to facilitate smooth and prompt transfer of money remitted by wage earners to their relatives or nominated representatives. To this end the bank has established banking connectivity with countries of Middle East, Gulf, South and East Asia and Italy to collect remittances from the expatriates. It has effected arrangements to ensure direct channeling of remittances to Bangladesh through its two overseas subsidiary companies and agreements with 32 foreign banks/exchange houses. Agrani Exchange House Private Limited has been operating since 31 January, 2002 in Singapore through which about 5145 million taka was repatriated until 2008. An MOU was signed with Bhumiputra Commerce Bank, Malaysia on 21 January, 2004 to help channeling remittances from Malaysia. A Drawing Arrangement Agreement has also been inked with Malaysian May Bank through which remittances from Malaysia are being repatriated. For smooth transfer of remittances from NRBs living in Kuala Lumpur Agrani Bank Remittance House Sdn Berhad is in full operation. In line with govermental instruction prompt transfer of money to the beneficiaries accounts are ensured to speed up internal monetary flow.

Agrani Bank Limited has approved credit facilities to 3983 development projects worth of cumulative 38043 million taka until 2009. Out of which 4314 million taka sanctioned against 225 projects including financing for establishment of 56-megawatt power plant alone in 2009. Credit facilities approved for industrial sector has a ratio of 48 percent for heavy and medium and the rest 52 percent for small and cottage industries. The bank is financing to important 44 sub sectors in the industrial sector selected by the government.

Since 1977, in line with public policy, Agrani Bank has been deeply involved in the micro credit to bring more rural people in the national economic activities and has so far disbursed 27367 million taka to 3280563 micro entrepreneurs including 10 ngos under 25 projects. The recovery ratio is satisfactory. ABL has reorganised and upgraded its Micro Enterprise Development Unit (MEDU) into SME and microcredit Division to beef up the poverty reduction programme. Under the ambit of this initiative Employment Generation Project for the Rural Poor (EGPRP) project is being implemented credibly by Agrani Bank since 1995 with joint assistance from IFAD. The bank, in collaboration with three other public limited banks is maintaining a special microcredit project for the development of retarded population since 2000. Under the SME and Micro credit Division of the bank 14-microcredit projects are being implemented to help reducing poverty, creating job and expanding small business through NGOs and others. Brief description of three mentionable important programmes among them are as follows:

Employment Generation Project for the Rural Poor (EGPRP) The five year project was intiated with joint venture arrangement between Agrani Bank and IFAD in 1995-96. After its completion in June 2000, Agrani Bank is implementing the projects with its own fund. Main objectives of this project is to promote micro entrEpreneurship and employment generation. Under this scheme upto 75,000 taka is credited without collateral and upto 500 thousand taka against the collateral. NGOs are also provided loan under this project. Up to December 2009, a total of 5223 million taka has been disbursed to 58480 micro entrepreneurs, against which 5443 million taka has been realised, the ratio of recovery being 97 percent.

Special Microcredit for the development of retarded population The special credit facility was established in 2003 as a thrust sector of the Bangladesh government. Aiming at making the retarded self supporting and bringing them to the social and economic arena of the national life, Agrani bank is implementing this programme. Though physically retarded, an intelligent and capable in business can have access to this credit facility either individually or at family level.

Credit to Women To bring back the women in the main stream of development activities the specialised credit facilities have been created. A woman can avail herself of up to 100 thousand taka loan under this scheme.

With the application of information technology Agrani Bank is striving for functioning efficiently and effectively while catering better banking services to its customers. It has achieved a remarkable progress in on-lining system of transactions between all its branches. Out of 867 branches, 258 have been brought under LAN based software. In all other branches important functions are carried out in computer. All branches of the banks have internet facilities through which remittances are transacted very efficiently. The branches where banking software have not yet been installed, General Ledger Software are there, through which daily statement of affairs, profit and loss accounts are preserved on automated system. A website of the bank is providing all banking services, financial statements and business related information since 2002. With the introduction of E-Cash ATM card in 2002, a new era of smart banking service from a state owned commercial bank in Bangladesh was opened. Under this arrangements customers are being provided facilities to draw cash within 24 hours from any desired location and paying utility bills under one roof. It is a shared system with which eight member banks are associated. Under this coordinated system countrywide banking facilities are being available through 40 ATM booths of member banks in different cities. 14 swift stations in different branches of the bank are providing foreign exchange transaction related services to exporters importers and the wage earners remittances as well. [Muhammad Abdul Mazid]