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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]