Agrani Bank

8/31/2019 Agrani Bank internship Report by sheikh Al amin: Internship report on agroni bank By shaikh Al amin -2n part
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Internship report on agroni bank By shaikh Al amin -2n ►

► 2016 (1)
part ▼
▼ 2013 (1)
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▼ August (1)
CHAPTER 01 Internship report on agroni
Internship report on agroni bank By shaikh Al amin bank By shaikh Al amin...
-2n part ►
► 2011 (1)
INTRODUCTION
1.1 Background of the Report
আমার স েক
Internship program is a pre-requisite for acquiring BBA degree. Before completion of
the degree, a student must undergo the Internship program. As the classroom discussion
alone cannot make a student perfect in handling the real business situation, therefore, it
is an opportunity for the students to know about the real life situation through this
rasel
program. And a report is required to be prepared to summarize the intern’s analysis,
findings and achieved knowledge from this program. This report is a basic academic আমার স ূণ
াফাইল দখুন
requirement for the completion of BBA under the Department of Accounting &
Information Systems, in Jagannath University, Dhaka.
The report titled “The activities of Government Commercial Bank in Bangladesh on

the light of Agrani Bank Limited are based on the study done in the 3 month
internship period in Agrani Bank Limited (ABL) Head office Principal Branch. It
contains a concrete idea about the overall activities of ABL as a Government Bank.
1.2 Problem Statement
It is very common conception of General people upon Government institutions that they
are greatly corrupted, inefficient service provider and not working properly for the
alaminatoshpara.blogspot.com/2013/08/chapter-01-internship-report-on-agroni.html 1/42
country people. But in many cases this is being a misconception with the changing
world. Now Government Organizations are trying to be correct to keep with the modern
world or is going to correct way automatically to keep with modern world. Though main
purpose of government organizations is to provide services to the country general public,
this is not remaining limited only providing services but the demand of time also making
profit and trying to survive with computing other organization. Government Bank is one
of them organization which is considered as a sensitive organization of a country
economics. So my problem statement is that how and why the government bank service
system and other Practices are changing in Bangladesh. This statement is set up to find
out what activities are Performed by a commercial bank Limited.
1.3 Objectives of the Report

The main objective of the study is to examine and explore the Overall activities of
Government Bank on the basis of General Bank Division, Advance Division and
Foreign Exchange Division of Agrani Bank Limited Principal Branch. The study also
discovers the nature of activities of Government which differentiates to government
bank from a private bank, statements related to financial position of the Bank and
Systems of Accounting, comparative Discussion of modern bank. However, the
objectives of the study can be divided into two basic parts:
A) Primary Objectives
The primary objectives of the report are as follows:
To fulfill the requirement of BBA program containing three-month
internship.
· To gain some practical job related experience along with all academic knowledge.
B) Secondary Objectives
The secondary objectives of the study are as follows:
· To explore the nature of service and activities of Agrani Bank Limited.
· To explore the nature of accounting practice of Agrani Bank Limited.
· Getting a overview of banking business in Bangladesh
· To gain a full overview about functions of ABL.
· To comprehend the contribution of ABL in Government
activities.
· To investigate the performance of ABL from accounting and overall activities
perspective.
1.4 Scope of the Report

Principal Branch and Head office Different division of ABL. are used as sources of
information. Mostly information is collected from Principal Branch GB, Advance and
Foreign Exchange division and it’s several Sections. So scope of this report is the
banking activities and accounting systems. So it is said that scope of this report is overall
activities and accounting Policy and practices of government bank on the light of ABL.
1.5 Methodology of the Study
a) Report Design
A descriptive research approach has used to conduct the report. According to Business
Research Methods by Willium G. Zikmund (Seventh Edition), descriptive research is a
type of conclusive research which has its major objective is to provide the description of
something-usually market characteristics or functions.
While conducting smooth and accurately study everyone has to follow some rules and
regulations. In this report I use both primary and secondary data. The details of the work
plan are furnished below:
b) Data Collection Method

Relevant data for this report will be collected primarily by direct investigations of
different records, papers, documents, statements, operational process and different
personnel. The interviews will administer by formal and informal discussion. No
structured questionnaire will be used.
d) Data Sources
The information and data for this report will be collected from both the primary and
secondary sources.
Primary Sources
· Face-to-face conversation with the respective officers and stuffs of different
section of the Branch.
· Relevant field study as provided by the officer concern.
Secondary Sources
· Annual report of Agrani Bank Limited
· Different manuals and publications of Agrani Bank Limited
· Different manuals and publications of Bangladesh Bank.
· Unpublished data (daily, monthly and yearly statements, ledgers) received from
different section
· Different text books.
· Different circulars passed by Board of Director (BOD)
· Official web site of ABL.
1.6 Limitations of the Study

Like any other study the limitations of this study is not out of questions. But the
following factors seem to me the main points of weakness of this study, despite all out
co-ordination from the bank officials.
· The main constraint of the study is inadequate access to information, which has
hampered the scope of analysis required for the study. I could not use some
important confidential information of ABL because those may be very sensitive
for the county and overall Banking operation of Bangladesh as ABL is a
Government Bank. So, I could not use this confidential information in this
report.
· Due to time limitations many of the aspects could not be discussed in the
present report.
· Since a very few the bank personals have accounting based knowledge, many
of official can’t provide a good briefing to me.
· Another problem is that creates a lot of confusions regarding verification of
data in case of interview from more than one person.
· I carried out such a study for the first time, so inexperience is one of the main
constraints of the study.
CHAPTER - 02
OVERVIEW OF AGRANI BANK LIMITED

2.1 What Kind of Organization
I choose the organization named Agrani Bank Limited (ABL), which is the
Government bank of Bangladesh. I choose this bank for some reasons:
firstly, the ABL appointed me and give me the opportunity to doing my
internship program. Secondly the working procedures of Government
Bank perform all the activities of commercial Bank and Financial
Institutions. And Agrani banking is more operating his business more

smoothly than other Government Banks.
2.2 Introduction of Agrani Bank Limited

Agrani Bank Limited, a leading commercial bank with 879 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 13 (thirteen)
members headed by a Chairman. The Bank is headed by the Managing Director & Chief
Executive Officer; Managing Director is assisted by Deputy Managing Directors and
General Managers. The bank has 11 Circle offices, 25 Divisions in head office, 62 zonal
offices and 879 branches including 27 corporate and 40 AD (authorized dealer) branches
2.3 History of Agrani Bank Limited

Agrani bank, in pursuance of Bangladesh banks (nationalization) order 1972 (P.O. No-
26 of 1972) came into being in 1971 taking over the assets and liabilities of the east
while Habib bank ltd. And commerce bank ltd. Functioning in the then East Pakistan.
The bank started operation with 249 branches with its head office in Dhaka. In principle,
it changed its motto from class banking to mass banking. As there had been poor
banking structure and it failed to build sound banking infrastructure by local
entrepreneurs before independence and the newly born independent country was down
with enormous economic problem, the new govt. Agrani Bank being one of the largest
nationalized commercial bank must shoulder the responsibility of expanding its network
in rural area. Presently bank has its 561 branches out of total 891 branches located in
rural areas implementing as many as 29 programs targeting rural people. During my
internship at Agrani Bank Ltd, I was placed in the Principal Branch under Head office of
ABL. I enjoyed my total working with the young, skilled & professional employees and
earn my knowledge regarding financial and non financial performance of Agrani Bank
ltd. Bangladesh
2.4 Brief Profile of Agrani Bank

Name of the Company Agrani Bank Limited
Chairmen Khondoker Bazlul Hique, PhD
Managing Director and Syed Abdul Hamid, PhD
CEO
Company Secretary Badal Chandra Dey
Legal Status Public Limited Company
Genosis Agrani Bank 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.
Date of Incorporation 17 May 2007
Registered Office 9/D Dilkusha Commercial Area, Dhaka
1000 Bangladesh
Authorized Capital TK. 1,000.00 Crore
Paid up Capital TK. 901.18 Crore
Reserve and Retained Tk. 1,693.08 crore
Earnings
Credit Rating By CRISL Date of Rating Declaration September
25, 2011
Particulars Long Short
term term
Entity AAA ST-
Rating 1
(as an
Government
Bank)
Surveillance A+ ST-2
Rating 2010
(stand Alone
Basis)
Surveillance A+ ST-2
Rating 2010
(stand Alone
Basis)
outlook of 2010 stable
Number of Employees 12,085 (8,498 officers and 3,587 staffs)
Number of branches 876 ( at 2012) 889 (at 2013 last)
Number Subsidiary 4
companies
Phone -PABX +88-02-9566153-4, +88-02-9566160-9
SWIFT at ID, HO AGBKBDDH

Website www.agranibank.org
E-mail agrani@agranibank.org
Table : 1
2.5 Vision, Mission & Motto
To become the best leading state owned commercial bank of Bangladesh operating at
international level of efficiency, quality, sound management customer service and
strong liquidity.
2.5.1 Mission & Motto
To operate ethically and fairly within the stringent framework set our regulators and to
assimilate ideas and lessons from best practices to improve our business policies and
procedures to the benefit of our customer and employees.
2.5.2 Motto
To adopt and adapt to modern approaches to stand supreme in the banking arena of
Bangladesh with global presence.
2.6 Strategic Objectives of the Bank
· Winning at least 6.50 percent share of deposits and 5.50 percent share of loans and
advance of Bangladesh market.
· Gaining competitive advantage by lowering overall cost compared to that of
competitors.
· Overtaking competitors by proving 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 SME and agricultural Sectors.
· Strengthening research capability for innovative products.
2.7 Management Hierarchy

Chart : 1. Management Hierarchy
2.8 ORGANIZATION STRUCTURE
Engineer Md.Abdus Sabur

Director
Barrister Zakir Ahammad

Director
Shahajada Mohiuddin
Director
Abduz Jahir Chowduhury Suffian

Director
K.M.N Manjurul Hoque Lablu

Director
A.K. Gulam kibria, FCA

Director
Luna Shamsuddiha
Director
Nagibul Islam Dipu

Director
Shekhar Dutta
Director
Ranjit Kumar Chakraborty

Director
Syed Abdul Hamid, PhD

Managing Director& CEO
Syed Bazlul Karim, BPM

Director
CHART:2 ORGANIZATION STRUCRE
Management Team
Syed Abdul Hamid, PhD

Managing Director& CEO
Mohammad Shams-Ul Islam

Mizanur Rahman Khan
Md. Nurul Haque
Bhanu Roy Chowdhury
Mohammad Jalal Uddin
Haradhan Das
A.A.Md. Shajahan
Md. Nazrul Islam Farazi
Deputy Manging Directors
General Managers
Md.Mofazzal Husain
Md. Obayed Ullah Al Masud
A.K.M. Mujibur Rahaman
Chart: 2 Organization Structure
2.9 Products and Services

v Deposit
¥ Current Deposit
¥ Saving deposit
¥ Fixed deposit (FDR)
¥ Special Notice Time Deposit (SNTD)
¥ Non Resident Special Taka Account (NRTA)
¥ NR investors Taka Account (NRIT)
¥ Agrani Bank Pension Scheme (APS)
¥ Agrani Bank Bishesh Shanchay Scheme (ABS)
¥ Monthly Deposit Scheme (MDS)
¥ Monthly Income Scheme (MIS)
¥ Students Savings A/C (School Banking)
¥ Small Life Insurance Policy Holders A/C
¥ Farmers A/C
¥ Freedom Fighters A/C
¥ Other Beneficiaries A/C Under Social Security’s Program
v Foreign currency Account
¥ Foreign currency (FC) A/C
¥ Non Resident Foreign Currency Deposit (NFCD) A/C
¥ Resident Foreign Currency Deposit (NFCD) A/C
¥ Exporters Retention quota (ERQ) A/C
¥ Loan& Advance
v Continuous Loan
¥ Cash Credit (Hypo)
¥ Cash Credit (pledge)
¥ Secured Overdraft (SOD)
v Term Loan
¥ Inland Bill Purchase (IBP)
¥ Export Cash Credit
¥ Industrial Credit(IC)
¥ Housing Loan (General & commercial)
¥ Consumer Credit
¥ Loan for Overseas Employment
¥ Weavers’ Credit
v Rural & Agro credit
¥ Crop Loan
¥ Fishery Loan
¥ Animal Husbandry Loan
¥ Agri Machinery Loan
¥ Rural Transport Loan
¥ Swanirvar Loan
¥ Poverty Alleviation Loan
v Small and Medium Enterprise Loan
¥ Service Sector Loan
¥ Trading Sector Loan
¥ Manufacturing Sector Loan
v Import Finance
¥ Loan against Imported Merchandise (LIM)
¥ Loan Against Trust Receipt (LTR)
¥ Payment against Document (PAD).
v 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)
¥ Treasury
v Money Market
¥ Maintaining CRR and SLR
¥ Call Money Transaction
¥ Term Placement
¥ Treasury Bills
¥ Treasury Bonds
¥ REPO
¥ Reverse REPO
¥ Secondary Trading of Govt. Securities
¥ Custodian Services
¥ Other Investments
v Foreign Exchange Market
¥ Providing Foreign Currency for Import Payment
¥ Preparation of Exchange Rate
¥ Foreign Currency Buying and Selling
¥ SWAP Transactions
¥ Foreign Exchange Forward Transaction
¥ Term Placement
¥ Letter of credit
¥ Letter of Credit-Sight
¥ Letter of Credit-Usance
¥ Back to Back L/C
¥ Letter of Guarantee
¥ Advance Payment Guarantee
¥ Bid Bond
¥ Performance Guarantee
¥ Shipping Guarantee
¥ Guarantee-Others
¥ Standby Credit
¥ 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
¥ Cash Service
¥ ATM Service
¥ Cheque Encashment
¥ Foreign Currency
¥ Fund Transfer
¥ Inter-Branch Money Transfer
¥ SWIFT
¥ Telegraphic Transfer (TT)
¥ Issuing Foreign Draft
¥ Enchasing Foreign Draft
¥ Bangladesh Electronic Fund Transfer Network
¥ Bangladesh Automated Clearing House(BACH)
¥ Online Deposit to Accounts
¥ Value Added Service
¥ Locker Service
¥ Utility Bill Collection
¥ Merchant Banking Service
¥ Issue Management
¥ Underwriting
¥ Portfolio Management
Islamic Baking Service

v Deposit
¥ Al Wadiah Current A/C
¥ Mudaraba Savings A/C
¥ Mudaraba Term Deposit
¥ Mudaraba Special Scheme Deposit
v Investment
¥ Bai Murabaha(Pledge)
¥ Bai Muazzal(Hypo)
¥ Higher Purchase Shirkatu Meilk
¥ Bai Salam
¥ Information and Communication Technology
2.10. Automation and Modernization in Agrani Bank Limited

2.10.1 Development in IT sector
Information and Communication Technology (ICT) has its direct impact on productivity
and competitiveness in both domestic and international markets. We are proud that
Agrani Bank Limited was the first among the commercial banks in this country to
introduce computer-based technology back in 1968. It started its journey from 1968
using IBM midrange computer. Since then amidst increasingly fierce competition, the
efficiency gains and the speed of IT have offered us the opportunity to open up new
sources of advanced, innovative products and improved customer service. Sufficient
allocation will be made for hardware and software to ensure complete implementation of
our ambitious plans for the increased use of ICT and Management Information Systems
(MIS)
2.10.2 Overall automation
Agrani Bank Limited started widely using computer technology for automation of its
various banking operations. Many important jobs of the bank are currently automated.
The Information Technology (IT) Division of the bank responsible for managing
automation of banking operations is well equipped with IBM Midrange computers, very
High End Servers and latest microcomputers and staffed with trained and experienced
personnel. The Bank uses its in-house software for processing most of the jobs
performed on IT Division. The major jobs, developed and handled in IT Division are:
a) Inter- branch Transaction Reconciliation.
b) Foreign Bank Accounts Reconciliation (Nostro Accounts).
c) Consolidation of statements of Affairs/ Income & Expenditure Statements.
d) Personnel System.
e) Pay-roll of Head Office Employees etc.
f) Inventory Management.
2.10.3 Branch Computation
Agrani Bank Limited has grown significantly over the years in branch automation. Till
date 488 branch out of its total 876 branches are computerized by using LAN based
Branch Banking Software. This software has been supplied by various renowned
software vendors of the country. The major functionalities of the branch banking
software:
a) General Banking-Deposit, Inland remittance, GL/PL.
b) Credit-all kinds of commercial loans and staff loans.
Most of the banking activities can be carried out using this software. Bank provides
continuous training for the uses of this software. The rest 388 branches will be
brought under this system by May 2012. Now, all the branches are having adequate
computers with internet connectivity along with `Online Foreign Remittance
Payment Software’ and `GL Software’ capable of making instant payment of foreign
remittance to the beneficiaries and preparing daily Statement of Affairs and Profit
and Loss Statement besides making other day-to-day correspondences.
2.10.4 Online Banking
IT-based baking has a major role to play in rendering improved services to the
valued customers and stakeholders in to-day’s competitive banking environment.
The Bank has taken various measures for automation of its functions and services.
One of the major steps is installation of fully integrated online core Banking solution
(T20 by Temensos). It began in 2010 with two pilot branches and how it has
progressed further. At present, in our 102 major branches in the country are totally
operating online Banking under this software. It should be mentioned that T24
software is rated as number one core banking software all over the world. For this
purpose, a most modern data center equipped with all related hardware, database,
connectivity and all other facilities was established in head office. Besides, a disaster
Recovery Site (DRS) was rented in Mohakhali where a true replica of data center is
established. The hardware related to data center and DRS has been set up with a
capacity to handle all the online branches of the branches of the bank. Again, to
handle such a big customer base, Oracle database is being used.
All the modules of T24 have been customized as per existing business process and
rules of the bank considering the guidelines of Bangladesh bank. Another 250
branches will be brought under this system by 2012. The Bank has planned to bring
a total of 400 branches under this system by the year 2013.
Introduction of T24 software will ensure services like internet banking, ATM
banking, and mobile banking to the customers.
2.10.5 BACH & BEFTN

As part of the plan of Bangladesh Bank for automation of clearing payment system
of the country, Bangladesh automated clearing House (BACH) was introduced in the
bank. The two components of (BACH0- Bangladesh Automated Cheque Processing
System (BACPS) & Bangladesh Electronic Fund Transfer Network (BEFTEN) are
activities in the bank. A total of 178 branch of the bank in 9 clearing areas of the
country have been brought under BACPS successfully. For this purpose, hardware,
MICR check scanner, network connectivity has been established in each concerned
location. For, BACH operation sophisticated centralized software has been
customized and installed which has facilitated the smooth operation of the system
throughout the country. The other component BEFTN has been allowed in it. The
debit operation will begin very soon. With the introduction of automated clearing
system, customer service has greatly improved.
2.10.6 E-GP
The government of Bangladesh has introduced e-GP(Electronic Government
Procurement) program under CPTU(Central Procurement Technical Unit) of
planning ministry. The contractors of 4 organizations i.e (1) Road & Highways,(2)
LGED,(3) BWDB and (4) REB can participate in e-tendering by depositing their
registration fee, renewal fee, tendering document fee, bank guarantee etc from
designated 86 branches of the bank all over Bangladesh. A formal high-level training
on e-Gp has been provided to a large number of employees of the bank. The bank
has voluntarily participated in e-GP program to meet its commitment to serve the
nation.
2.10.7 Website
Agrani Bank Limited has an informative website description of its various products,
services, annual accounts, citizen’s charter and other up-to-date information about
the Bank.
The website www.agranibank.org services as a primary source of information of the
bank. Current news on recruitment, tender etc. are also found in this website.
2.10.7 ATM
Agrani Bank Limited has introduced ATM( Automated Teller Machine) card facility
Known as E-cash Card. Under this system, a cardholder can get round-the clock
services of cash withdrawal and utility bills payment facilities. Our bank is sharing
200 ATM booths with AB Bank located at different cities of the country of which 5
are located at bank’s premises. The bank is planning to increase the number of card
holders, ATM booths and related products.
2.10.8 Introduction of Mobile banking
Agrani Bank Limited is planning to offer some transaction facilities through mobiles
set. As most of the population of Bangladesh is un-banked, our bank is going to
implement a system to launch mobile banking channel. With this facility any person
having a mobile number will be able to use his number as a bank account. The
facilities of mobile banking are:
a) Cash Deposit
b) Cash Withdrawal.
c) Fund Transfer to another Mobile Account.
d) Utility Bill Payment.
e) Receive Remittance from Home And Abroad.
f) Salary Payment
g) Merchant Payment
.
2.11 Progress Achieved In Last Year
In all major areas, the Bank made remarkable progress. Deposits grew by 22.24 percent
in 2011 and reached TK. 25.221 crore from Tk. 20.633 crore as against Tk. 16,326 crore
in 2010; Total loans and advances in 2011; which is 18.88 percent higher than that of the
previous year. The Bank’s profit continued to grow in 2011. The operating profit rose by
45.86 percent to Tk. 402 crore. Meeting up this incremental capital requirement become
possible only when there is a high rate of operating profit.
2.12 Shareholders’ Equity
The shareholders’ equity of the Bank as on 31 December 2011 stood at Tk. 2,594 crore
from Tk. 1,022 crore in 2011 than previous year.
The paid up capital of the Bank has increased from Tk. 497 crore to Tk. 901 crore due to
issuance of right share and bonus share during 2011.
Sources of Fund 2011 2010
Deposits 25,220.84 20,632.60
Paid-up-capital 901.18 546.52
Statutory Reserve 413.98 267.08
Assets Revaluation 26.93 90.25
Reserve
General Reserve 753.84 217.98
Retained Surplus from 0.50 0.50
profit and Loss Account
Total 497.83 449.39
27,815.10 22,204.32
Chart No:3 Shareholder Equity

2.13 BUSINESS PERFORMANCE
2.13.1 Deposits
At the end of December 2011, the deposit of the Bank stood at Tk. 25,220.84 crore
compared to Tk. 20,632.60 crore at the end of previous year leading to a year-on-year
growth in deposit of 22.24 percent. Given the adverse economic scenario of the
country during the year under review, this growth rate is a remarkable achievement. In
the prevailing situation, mobilization of deposits became highly competitive and as a
result, the average cost of fund for the banks in the private sector increased compared to
that of the previous year. The Bank, therefore, decided to mobilize low cost fund. The
deposit mix of the Bank as on 31 December 2011 was as follows:
2.13.2 Asset Quality
The Bank maintained quality of asset and this is one of the strong areas of its operation.
The Bank did not compromise with its standard of excellence in terms of maintain asset
quality while extending credit facilities. In order to improve the quality of our assets, the
Bank Management has prioritized financing in trade and commerce by providing
working capital. Moreover, some pragmatic steps have been taken to reduce non-
performing loans as well as to prevent new classification thereof.
Types of securities year
Government 2011 2010
Securities treasury bills 835.45 327.36
treasury bonds 5,740.32 2,697.35

Interbank REPO 0 0
Prize Bond 1.33 1.
Non-Government subtotal(A) 6,557.10 2,833.14
securities other bond 158.00 193.00
Debentures 76 142
shares 1,722.03 1.222.98
subtotal(B) 1,956.03 1,588.49
Total(A+B) 8,533.13 4,391.63

2.14 Others about the ABL
2.15.1 Investment Of The Bank: the Investment portfolio of the bank at the end of the
year 2011 stood at TK. 8,533.13 crore as agrinst Tk.4,391.63 crore in the previous year.
sector wise investment are shown below:
Tk. in crore
Chart No.:-4, Investment in different sectors
2.15.2 Loan and Advance’s sector wise position in 2011 of ABL

Sector-wise position of loans and advances as on 31 December
2011 is shown below:
Sector-wise Loans 2011 2010
Agriculture and Fishery 727.91 740.13
Jute and Jute Goods 798.30 888.43
Transport, Storage and Communication 174.43 252.08
Ship Breaking 220.14 95.48
Textile and Readymade Garments 3,178.53 1,694.97
Food and Allied Industry 985.16 680.84
Construction and Engineering 425.47 314.55
Pharmaceuticals and Chemicals 378.55 427.65
Leather 371.19 534.81
Power & Energy 746.70 195.73
Professional and Services 140.21 131.03
Housing Service 449.84 1473.82
Wholesale/Retail Trading 140.21 2,254.77 2,687.14
Personal Loan (staff loan and other personal loan) 1,490.40 1,379.19
others 7,066.96 4,829.95
Total 19,408.56 16,325.62
Table: 2, Loan sector wise position
Chart No.:5, Loan sector wise position.
2.15.3 Loan classification and provisioning

Reduction in the number and value of classified loans and advances has been overriding
priority of the Bank, along with maintaining a commensurate provision. A range of steps
were taken to achieve the optimum result. The main fous was on the intensive and strict
follow-up in respect of recovery of previous classification thereof. By the end of 2011,
the total classified loan stood at Tk. 2,149 crore (11.07) percent of total loans and
advances). At the end of 2010, it was 12.88 percent of total loans and advances.
2.15.4 Recovery of Non-performing Loans
The Bank has intensified its efforts to reduce classified and overdue loans and take
appropriate measures to convert non-performing loans into performing ones. As part of
these efforts, intensive monitoring both at the field and head quarters levels was carried
out. A debt collection Unit was also set up inside at the Bank head quarters for effective
follow-up and recovery of loans by 6 private Debt collection Agents appointed to
recover non-performing and written-off loans.
2.15.5 Merchant Banking

Capital market should be the major long-term fund raising sources for domestic large
scale industry which ensures liquidity of fund, public participation as well as ownership.
Agrani Bank Limited is taking part in the capital market operations since it got license
from Securities and Exchange Commission (SEC) on 23 March 2009. Initially
operations were executed under Merchant Banking Unit of Bank. IN March 16, 2010,
the Bank has formed a subsidiary company named `Agrani Equity and Investment
Limited’. It started its operation in 15 June 2010 taking all the
2.15.6 Foreign Remittance Business
The growth of foreign remittance inflow to Bangladesh increased in the year 2011
despite global economic meltdown. Bangladesh has earned a total remittance of US$
10,739.95 million in the year 2010 implying a growth of 12.45 percent.
In the year 2011 ABL has received foreign remittance of US$1,165.40 million or TK.
8,682.46 crore compared to US$ 980.00 million or Tk.7,096.95 crore in 2010. That
means Agrani Bank Limited has registered a growth rate of 22.34 percent in 2011.
Country Wise Remittance-2011(Chart)
SI.No. Country name BDT
1 Saudi Arab 3,420.81
2 UEA 1,270.50
3 Malaysia 1,155.56
4 USA 933.58
5 Kuwait 798.62
6 Singapure 669.57
7 Bahrain 138.88
8 Oman 102.58
9 Italy 36.16
10 Qatar 33.44
11 Others 122.76
Total 8,682.46
Table : 3, country wise remittance
Chart No.: 6, country wise remittance

CHAPTER 3
CONCEPTUAL FRAMEWORK:
3.1 Origin and Definition of Bank
Barter System→ Money→ Bank.
Though it is still not possible to find out exact place and time of origin of bank but some
historian has tried to discover of the history of Bank by using various evidences and
events. At past, people made transactions by barter system. In this system, they transact
products. If someone had enough rice, his required fish then he would go to fisherman
for collecting fish in exchange of rice. On the other hand, fisherman had required rice &
they transferred products one to another. By using this system, they were continuing
their lives. However, at a time barter system failed due to divisibility. Due to failure this
system, people develop money.
This is now the common medium for transactions. For securing money, people establish
bank. By which they are maintaining their transactions.
The Word `bank’ is come from banke, German (Banko) Italy and then Bank English. A
brief definition "A broader definition may be given as” A bank is any financial
institution that receives collects transfer pays, exchanges, lend invest and safeguard
money for its customer. To be a bank must authorized by the central bank. Intact bank is
the lifeblood of modern economy. Generally speaking bank is referred to an organization
that deals in money.
3.2 History of Bangladesh Banking Industry
Bangladesh inherited its banking structure from the British regime and had 49 banks and
other financial institutions before the Partition of India in 1947. The Dhaka Bank
established in 1806 was the first commercial bank in the Bangladesh region of British
India. Later in 1862, the Bengal Bank Purchased the Dhaka Bank and opened its first
branch in Dhaka in the same year. There were six other branches of Bengal Bank in
operation in the territory of Bangladesh until the Partition of British-India in 1947.
Following the emergence of Pakistan in 1947, State Bank of Pakistan, the Central Bank
of the country, came into being in July 1948. Pakistanis owned most of these banks and
only three of them namely, National Bank of Pakistan, Habib Bank Ltd. and the
Australasian Bank Ltd, had one branch of each in East Pakistan in 1949.But all of them
had their headquarters in west Pakistan.
In the beginning of 1971, there were 1130 branches of 12 banks in operation in East
Pakistan. The foundation of independent banking system in Bangladesh was laid through
the establishment of the Bangladesh Bank in 1972 by the Presidential Order No. 127of
1972 (which took effect on 16th December, 1971). Through the Order, the eastern
branch of the former State Bank of Pakistan at Dhaka was renamed as the Bangladesh
Bank as a full-fledged office of the central bank of Bangladesh. Others commercial bank
are nationalized and bring under government control
3.3 Banking Operation in Bangladesh
The development process of country largely depends upon it economic activities for
bringing about socioeconomic changes in a developing country like Bangladesh Three
different sectors like agriculture, commerce and industry provide the bulk of a country’s
wealth.
Banks provide both short-term and long-time credit. The customers come from all
walks of life from small business a multi-national corporation having its business
activities all around the word. The banks have to satisfy the requirement of different
customers belonging to different social groups. The banking business has therefore
become complex and requires specialized skills. I regardless of the numbers of banks
and nature of their functions and activities, a central bank exist to regulate the activities
of other banks. All the commercials private and or nationalized and specialized bank
perform service related activities within the jurisdiction of the central bank. In our
country, Bangladesh the role of the central bank is entitled to be executed by Bangladesh
Bank.
3.4 Total Banks and Their Branches in Bangladesh
The country’s central bank is Bangladesh Bank, which is a name of regulatory bank,
controls and monitors the banking industry. Bangladesh Bank (BB) has been working as
the central bank since the country's independence. Its prime jobs include issuing of
currency, maintaining foreign exchange reserve and providing transaction facilities of all
public monetary matters. BB is also responsible for planning the government's monetary
policy and implementing it thereby. The BB has a governing body comprising of nine
members with the Governor as its chief. Apart from the head office in Dhaka, it has nine
more branches, of which two in Dhaka and one each in Chittagong, Rajshahi, Khulna,
Bogra, Sylhet, Rangpur and Barisal.
There are 4 Nationalized Commercial Banks with 3616 branches, 28 privatized banks
with 1214 branches, 13 foreign banks with 32 branches and 4-development financial
institution with 1177 branches, 4 specialized bank in Bangladesh.
Currently the major financial institutions under the banking system include:
¥ Bangladesh Bank
¥ Commercial Bank
¥ Islamic Banks (for interest free Islamic banking in adherence to t
¥ he shariah, i.e., Islamic banking principle and practice.)
¥ Leasing Companies
¥ Finance Companies
¥ Merchant Banks
The name of the Banks which are operating business in Bangladesh, are:
3.5 Role Of Bank In Banladesh

Bangladesh as a member of third world countries with poor income level, a disappointed
literacy rate, vast poverty range and peoples unconscious attitude toward savings and
investment Bangladeshi banking sector has great role to economic enhancement.
Besides banking industries has been an important field of employment.
3.6 Regulatory Environment
Ministry of finance & Bangladesh Bank regulates the sector through monitory and fiscal
policies.
3.7 Ministry Of Finance
Approves budget of NCBs---Provide operational policy guidelines for NCBs---Appoints
the MDs and GMs of NCBs
3.8 Bangladesh Banks
Set guidelines for banks---Has the authority to issue licenses for new banks---BRPD
regulates deposits, advances, capital & reserves---DBOD looks after bank licensing &
expansion. The range of banking products and financial services is also limited in scope.
Besides all local banks are imposed with 5 percent Cash Reserve Requirement (CRR),
which is non interest bearing and 15 percent Statutory Liquidity Requirement (SLR).
This has given rise to higher cost of funds. With the liberalization of markets,
competitive on banking products and financial services seem to be more intense and
competitive
3.9 Problem Of Banking Sector In Bangladesh
Debt default--Intervention in credit allocation--Low profitability--Inadequate legal

framework--Distortion of interest rate structure--Low savings & investment
REFORM PROJECT
During 1991-1995 financial reform project was undertaken with the objective to:
¨ Assist government in monitoring policy reform
¨ Improve bank supervision & regulation
¨ Improve quality & level of training
¨ Computerization of Bangladesh Bank & NCBs
¨ Introduce modern banking techniques to NCBs
The program included:
Liberal interest rate policy--Capital adequacy requirement--Policy to improve loan
recovery and classification system--Adequate provision for loan loss--Policy to follow
central bank regulation to declare profit. Financial discipline is still inadequate--Banks
are not guided adequately by market forces--Foreign banks are regulate as superior
service provider-Local banks have taken steps to improve service quality--Technology is
a major driving force.
3.10 The Activities and Services of Commercial Bank in Bangladesh
3.10.1 General Banking Divisions
General banking is the heart of all business banking activities. General banking
department performs the core function of bank operates the day-to-day transactions. It is
the storage point of all kinds of transaction of foreign exchange department, loans and
advance department and itself.
3.10.1.a) Functions Of General Banking
The functions of general banking division are as follows

¨ Maintenance of Deposit A/C, Saving accounts/ Current accounts/cash credit
deposits/Fixed deposits/short term deposits/margin deposits/Bond
deposits/F.C. Bond deposits.
¨ Receipts & payment of cash.
¨ Handling transfer transactions.
¨ Operations of clearing house.
¨ Maintenance of accounts with Bangladesh Bank & other banks.
¨ Collection of Cheques & Bills.
¨ Issue and payment of Demand Drafts, Telegraphic Transfers and payment
Orders.
¨ Executing customers standing Instructions.
¨ Maintenance of safe Deposit Lockers.
¨ Maintenance of Internal Accounts of the banks.
¨ Reporting to head office about daily position.
¨ Saving all transaction record in computer.
¨ Closing and transfer of different types of accounts.
¨ Keeping good relation with valued customer
3.10.1. b) Sections of General Banking

Ø Deposit section
Ø Local Remittance section
Ø Clearing Section
Ø Cash section
Ø Transfer section
Ø Cash section
Ø Mail receive and dispatch section
3.10.1.c) Deposit section

Account Opening unit:
One of the vital functions of deposit section under general Banking is the account
opening. Banker customer relationship begins through this section. Function of this unit
various tasks are. Such as
¥ Opening of different types of account.
¥ Issue of checkbook.
¥ Transfer and closing of account.
¥ Enquiry of account.
3.10.1.d) Fixed Deposit Account

A fixed deposit account is repay e after the expiry of a predetermined period fixed by the
customer himself. The period varies from three months to three years. The customer
may open his/her account for different time periods, which may be for three months, six
months, one year, two years and three years.
Ø Opening of FDR
There is a prescribed form for opening FDR. No introducer and photograph is required
for opening this Account a minimum amount as determined by the H.O is required to
open such an account.
Ø Premature Encashment of FDR
A depositor has the right to claim for refund of his deposit before expiry of the fixed
term thereof. Bank may in special consideration allow premature encashment on
application of the deposit subject to the under noted conditionf
3.10.1. e ) Current Deposit Accounts
In case of current or demand deposits, the bank undertakes the obligation of paying all
cheques drawn against it by the customer till it has adequate funds of the customer with
it. The current account is a running account and, therefore, it never becomes time barred.
The special characteristics of such an account are as follows:
Ø Opening of Current and Savings Accounts
Following formalities are required to be completed before a current or a savings account
is opened in a bank:
¨ Application on the prescribed form—
¨ Photographs— As per the recent directives of the Bangladesh Bank the applicant is
required to submit two photographs(passport size—One to be pasted on the application
form and the other on specimen signature sheet.
¨ Introduction or reference—
¨ Specimen Signature—
¨ Mandate for an operation of the account by an agent—
¨ Opening the account—
3.10.1.f ) Closing of a Bank Account

A customer's account may be closed in the following circumstances:
1. The customer may inform the banker in writing of his intention to close the
account. The banker cannot ask for his reasons of such closure.
2. The banker may itself ask the customer to close his account when the banker
finds that the account has not been operated for a long time. A notice to that
effect can be given to the customer. In case the customer is not trace e, the
amount standing to his credit may be transferred to "Unclaimed Deposits"
account. The amount shall be paid to the customer as and when he is traced.
3. In case the banker finds that the customer is not desir e e.g. customer is guilty of
having forged cheques or bills of exchange etc or flouting rules of operating the
account, the banker may by notice in writing inform the customer of its intention
to close the account. However, the banker should follow the following procedure
in this connection:
In the following cases, the banker should suspend all payments from the customer's
account till the matters are finally settled
¥ When the banker receives notice of customer's death or insanity.
¥ When the customer becomes insolvent or in case of a company, it goes into
liquidation. In such cases the money standing to the credit of the customer will
be transferred to the official receiver or the official liquidator as the case may be.
¥ When the banker receives a Garnishee Order.
¥ When the banker receives notice from the customer regarding assignment of the
balance standing to the credit of his account by him to a third party.
3.10.1.g) Dormant Accounts
Dormant Accounts are those accounts, which are without any customer created
transaction for a long time. The law has not prescribed any period after which an
account should be treated as a Dormant Account because of absence of any transactions
by the customer in his account. Every bank has its only policy in
3.10.2 Local Remittance Section
There are three ways of transferring fund domestically. The modes of transferring funds
are:
¥ Pay- Order (PO).

¥ Demand Draft (DD).
¥ Telegraphic Transfer (TT).
3.10.2.a) Payment Order / Pay Order (P.O)
This is an instrument issued by the branch of a bank for en ing the Customer/Purchaser
to pay certain amount of money to the order of a certain person/firm/organization/office
within the same clearinghouse area of the pay order-issuing branch.
Characteristics of P.O
¥ The issuing branch and paying branch are same.
¥ Application for payment within the clearinghouse area of the issuing

branch.
¥ This may be open or can be crossed.
¥ No charge for issuing pays order for account holder.
3.10.2.b ) Demand Draft (D.D)

This is an instrument through which customer’s money is remitted to another
person/firm/organization in outside the clearinghouse area from a branch of one bank to
an outstation branch of the same bank or to a branch of another bank (with prior
arrangement between that banks with the issuing branch).
3.10.2.c) Telegraphic/ Telephonic Transfer (T.T)
This is a mode of transfer of customer’s money from a branch of one bank to another
branch of the same bank through telegraphic/telephonic message. The issuing branch
used to send the message of such remittance through telegraph/telephone adding certain
code number or test number on the basis of test key apparatus developed by the
concerned bank for its different branches.
Function of TT section:
¥ Provide information about TT. Such as who may remit Taka how it can etc.
¥ Receive TT (inward) and transfer TT (outward) by using Telephone.
¥ To perform test agreement /Evaluation of TT both of inward and outward
¥ To perform test agreement/Evaluation of online money transfer
¥ To perform test agreement/Evaluation of Demand Draft
¥ To perform test agreement/Evaluation of Pay order.
3.10.2 d) Bills and Clearing Section

Clearing and bills section is an important section of General Banking. This is the section
through which branch has to clear it’s inter branch and inter-bank transaction. Customers
do pay and receive the collecting branch the system is known as IBCA.
Ø Outward Bills for Collection (OBC)
Customers deposit cheque, drafts etc. for collection, attaching their deposit slip.
Instruments within the range of clearing are collected through local clearinghouse. But
the other, which is outside the clearing range, is collected through OBC.
Ø Inward Bills for Collection (IBC)
In this case bank will work as an agent of the collection bank. The branch receives a
forwarding letter and the bill. Next steps are:
¥ Entry in the IBC register, an IBC number given.
¥ The instrument is sent to clearing for collection.
¥ An IBC is dispatched in this regard. If dishonored: in this case the instrument is returned
to the collecting branch along with return Memo indicating the cause of dishonored.
3.10.3. The Clearing House System
A clearing house may, therefore, be defined as an organization of barks constituted for
the purpose of settling inter-bank liabilities due to transfer of deposits by a customer of a
particular bank to that of another bank.
3.10.3.a ) Types of Clearing

¨ Outward Clearing: Outward clearing means when a particular branch receives
instrument drawn on the other bank within the clearing zone and those instruments for
collection through the clearing arrangement is considered as outward clearing for that
particular branch.
¨ Inward Clearing: When a particular branch receives instruments which on them and
sent by other member bank for collections are treated as inward clearing.
3.10.4 Cash Section

Cash section is an important section where cash transactions are made. Cash sections
demonstrate liquidity strength of a bank. It is also sensitive as it deals with liquid money.
Maximum concentration is given while working on this section. Tense situation prevails
if there is any imbalance in the cash account. There are various systems maintain by
cash officer that is under:
¥ Vault
¥ Cash Payment
¥ Cash Receive
¥ Transaction after banking hour.
When clients deposit cash in the bank, the bank officer on receipt of the cash and the pay
in slip/credit voucher shall:
¥ Check and count the received cash.
¥ Make sure that the amount in word and number in the deposit slip are same.
¥ Check the account title and the number.
¥ Both the deposit slip is in order.
¥ Depositor’s signature is in the slip.
¥ Receive seal in the slip is a must.
¥ Write the domination of the currency at the back of the pay in slip or the
credit
¥ Check of it is an open or crossed check.
¥ The branch name in the cheque.

¥ The date in the cheque is very crucial. Cheques are normally valid six
months and pre-dated cheques are asked to present after the date given.
¥ Tk in words and figure of the cheque is same.
¥ Balance in the account is avail e.
3.10.4.a ) Books maintained by cash department
¨ Vault Register:
¨ Cash Receive Register:
¨ Cash Payment Register:
¨ Daily Cash Balance Register:
3.11.5 Mail Receive and Dispatch Section

Banking is the business of correspondence. Lot of mail comes to the bank and dispatch
from the branch daily. Loss of any document causes much loss for bank. That is why
bank has to record all mail received and dispatched through the bank.
3.10.5. a). Mail receiving
All mail comes to the bank recorded in this desk. For this reason a register book
maintained called inward mail register. A number is given on receiving mail and records
particulars of document in the register book.
3.10.5.b ) Mail Dispatching
Before dispatching mail from the bank, it must record in outward mail register. A
number is given on the mail. Destinations, date of dispatch are recorded in that register
book
3.11 Loan & Advances Or Credit Division

Credit indicates any amount which is lent to the party on a fixed rate interest and return
after a certain period of time. Major source of income of a commercial bank is the
earning from credit. Borrower selection, to credit sanctioning, recovery of credit etc are
the important tasks of this Division. Commercial Bank credit is not only important for
surviving a bank but also it is essential for developing a country’s business and industry.
Without loans country’s industrial and commercial development is not pos e.
Therefore, smooth loan system in banking sector is a catalyst for economic development
of a country.
3.11.1 Advance Secured and Unsecured

1. Secured Advance: Secured advance are those advances which are secured by
tangible securities of adequate value over which the bank has either absolute or
constructive control in addition to the personal guarantee of the customer.
2. Unsecured Advance: The advances which are granted to a constituent of
undoubted standing and reliability and only in exceptional circumstances and for
short period without any tangible security are called unsecured advances.
3.11.2 Functions of Advance Division

Ensuring that funds are disbursed only after compliance with terms and
conditions or required documents received.
Make sure that the bank has always valid and current loan
documentation.
Ensuring that the bank receives sufficient valid insurance cover
whenever required from a recognized insurance company.
Monitoring the receipt of periodical receiv e. Debiting the client for
all charges, interest etc.
Maintaining the central liability records for all extensions of credit
and balancing the totals with General Ledger.
ADVANCE
3.11.4 LOAN & ADVANCES
Foreign
Advance
(Overdraft)
Advance
(Loans)
Advance
(Discount)
Inland
LTR
LIM
PC
FPB
IBP
LPDB
PAD
PCS
Transport Loan
HBL (General)
Loan (General)
HBL (Staff)
Project Loan
Furniture Loan
TOD
SOD
CC (Hypo)
CC (Pledge)
Chart-7, Loan & Advance
3.11.5 TYPES OF LOAN

has the following loan schemes:-
¨ Continuous Loan
¨ Demand Loan
¨ Term Loan
¨ Cash Credit (CC)
¨ Overdraft (OD)
¨ Bank Guarantee
¨ Staff Loan(PBL)
3.11.6 Continuous Loan
The limited loans with expiry date of loan payment, which can be transacted without any
particular payment schedule, are termed as continuous loan. Following are the various
categories:
1. Small Enterprise Financing (SEF)

2. Consumer Financing (CF)
3. Other than SEF and CF
3.11.7 Demand Loan
The loans, which become eligible for payment when demanded by the bank, are termed
as demand loan. If contingent or any other debt becomes forced loan, then those are also
termed as demand loan.
Following are the various categories:
1. Small Enterprise Financing (SEF)
2. Consumer Financing (CF)
3. Other than SEF and CF
3.11.8 Term Loan
The loans which are to be paid within limited term with a particular payment schedule
are known as term loan.
3.11.9. Short term Agro and Micro Credit
The short-term loans which are listed in yearly loan disbursement schedule served by the
loan department of Bangladesh Bank are termed as short-term agricultural loan and
micro-credit. The loan given to the agricultural sector for less than 12 months is also
included in this category. By short-term loan we mean the loan below Tk 10,000 to be
paid within 12 months.
3.11.10 Cash Credit (CC)
¨ Cash credit is given through the Cash Credit (CC) account.

¨ Cash credit account is basically a current account, however a little difference exist
between them. The distinction between a current account and CC account is that
the former is intended to be an account with credit balance and the latter an
account for drawing of advances.
¨ Operation of cash credit is as same as overdraft. The purpose of cash credit is to

meet working capital needs of traders, farmers, and industrialists
3.11.11 Over Draft (OD)
¨ Overdrafts are those drawings which are allowed by the banker in excess of the
balance in the account up to a specified amount for definite period.
¨ Generally it is given to the businessmen to maintain their business activities.
¨ Any deposit in the SOD account is treated as repayment of overdraft.Generally

provided against FDR, any primary security etc.
3.11.12 Staff Loan: there are two tyepes of staff Loans:
Ø STAFF HOUSE BUILDING LOAN – SHBL
Ø STAFF LOAN AGAINST PROVIDENT FUND – SPF
3.12.13 Process of Loan

Application
Applicant applies for the loan in the prescribed form of the bank describing the types
and purpose of loan.
Credit Approval Procedure
After receiving the application from the client, official prepares a Credit Line Proposal
(CLP) and forwards the same to the Head Office. To place before Head Office Credit
Committee (HOCC) for approval it includes
¥ Request for credit limit of customer.
¥ Project profile/profile of business.
¥ Copy of trade license duly attested.
¥ Copy of TIN certificate
¥ Certified copy of Memorandum of Association, Articles of Association,
Certificate of Incarnation, Certificate of Commencement of Business, and
Resolution of the Board, Partnership Deed (Where applic e)
¥ 3 years Balance Sheet and Profit & Loss account.
¥ Personal net worth statement of the owner/directors/partners etc.
¥ Valuation certificate of the collateral security in Bank’s form with photograph of
security.
¥ CIB inquiry form duly filled in (for proposal of above 10 lac.)
¥ Declaration of the name of the sisters concern and their liability.
¥ Incase of L/C detailed performance of L/C during last year.
Therefore, the steps in lending can be sum as follows,
v Entertainment of application for loan proposal.
v Preliminary screening of credit proposal.
v Feasibility study & appraisal of loan proposal or credit
investigation.
v Sanction of loans or advances.
v Disbursement of loans or advances. Sanction
a. Collecting credit information about the applicant to determine the credit worthiness of
the borrower. Sources of information
i. Personal Investigation, Confidential Report from other bank, Head

Office/Branch/Chamber of Commerce.
ii. CIB (Central Information Bureau) report from Central Bank.
b. Evaluation of compliance with its lending policy.
c. Evaluating the proposed security
d. If loan amount exceeds 50 lac then bank goes for LRA Analysis.
e. LRA is must for the loan exceeding one crore – as ordered by Bangladesh
Bank.
If everything is in accordance with the loan is sanctioned
3.11.12 b) Loan Classification:

Loan classification is a process by which the risk or loss potential associated
with the loan accounts of a bank on a particular date is identified and quantified
to measure accurately the level of reserves to be maintained by the bank to
provide for the prob e loss on account those risky loan.
All types of loans of a bank are fall into following four scales:
Unclassified: Repayment is regular
Substandard: Repayment is stopped or irregular but special collection efforts

may result in partial recovery.
Doubtful Debt: Unlikely to be repaid but special collection efforts may result
in partial recovery. Bad/Loss: Very little chance of recovery
3.12.12.C ) REPAYMENT ARRANGEMENT:
* The installment shall be pay e monthly on or before 7th of the subsequent
month.
* Post dated chaque of the amount equal to the installment size (one of each
installment) and one undated cheque (double of installment size) in favor of

Bank Ltd. should be submitted before disbursement of the loan.
3.12.13 Card section
It is a new section of Bank the development process is ongoing level. A limited card
facility has been provided to the customer
Documents Needed for Applying Credit card
1. Photograph (one copy)
2. Copy of TIN certificate
3. Copy of passport and national ID card
4. Proof of Residence
5. Bank statement for last six months.
6. If salaried, the original certificate of latest salary
7. If self employed, copy of trade license.
3.12 Ideas about Foreign Exchange
3.13.1 Introduction of Foreign Exchange
Foreign Exchange refers to the process or mechanism by which the currency of one
country is converted into the currency of another country. Dr. Paul Einzing defines
“Foreign Exchange as the system of process of converting one national currency into
another & of transferring money from one country to another”. The Foreign Exchange
Regulation Act 1947 as adopted in Bangladesh defines Foreign Exchange as Foreign
currency including any investment draws, accepted, made or issued as per clause 13 of
article 16 of Bangladesh Bank order 1972 & all deposits, credits & balances pay e in any
foreign currency, any drafts, travelers chouse, L/C & bill of exchange express or drawn
in currency but pay e in foreign currency.
3.12.2 Description of duties and requirements of job

Ø Examination of L/C opening Form
Ø Fill-up the L/C Advise
Ø Entries in to the L/C issue register
Ø Entry in to Register Books
3.12.2 a ) Examination of L/C opening Form:

One has to check or input the following points very carefully:
Ø That all the information in the column has been dully furnished.
Ø Terms and condition mentioned in the L/C. A consistent with the exchange
control UCP, Import policy and with international practice and uniform rule.
Ø The terms are difficult for the beneficiary to complied with which incorporated in
the L/C.
Ø Item is permis e/ entitled for importer.
Ø L/C must not open in favoring of importer or his agent or the agent of supplier
Indenter.
Ø That it is stamped as it constitutes a contract between the importer and banker.
Ø The goods are not originated and imported form band country.
Ø That all the cutting s erasing over writing alteration if any must be authenticated
by authorized persons.
Ø Validity of L/C must not exceed the validity of L.C.A.F and License.
Ø Any exceptional terms (Inco terms) used but not permis e in exchange control.
Ø Special permission if any enclosed with L.C.A.
Ø The currency of L/C/ sources of fund in case of Loan/ Aid/ Grunts/ STA.
3.12.2. b ) Fill-up the L/C Advise:

L/C’s are normally typed in s printed form in many folds (8 Copies). These many folds
are used as that each for all the parties in the L/C, prepared as per instructions of the
importer. The entire column must be filling-up as per instructions given in the L/C
application form by the importer; nothing could be avoided and altered. After typing L/C
should be again checked up by to authorize signatories (Sr. Principal Officer) after
realization of respective charges and L/C should be dispatched accordingly.
3.12.2 c) Entries in to the L/C issue register:
Every L/C treats at separate transaction. So it is marked serial No. according to the
chronological serial No. of the L/C register.
3.12.2 .d ) Letter of Credit (L/C)
Letter of Credit can be defined as a ‘credit contract’ whereby the buyer’s Bank is
committed (on behalf of the buyer) to place an agreed amount of money at the seller’s
disposal under some agreed conditions. L/C is also known as documentary credit. A
documentary credit may either be revoc e or irrevoc e.
Before open any Letter of credit officer must know the following Rules and Regulation
which govern International Trade Finance and Documentary Credit.
Local Rules:
Ø Exchange Control Regulations on Import.
Ø Import policy for the year.
Ø The Import Export Act-1950.
Ø Customs Duty, VAT, SRO, Tariff.
Ø Rate of exchange and its application.
Ø FE/FD Circulars FD Circulars letter (Public notice). Instruction Circulars Issued from
Head Office.
· List of Agency Arrangement of .
· The Importer, Exporter and Intender Registration Act-1981.
Uniform Rules:
Ø Uniform Customers and Practice for Documentary Credit (UCPDC).
Ø Uniform rules for Collection (URC).

Ø Uniform rules for Bank to Bank Reimbursement (URR).
Ø International Commercial Terms (INCOTERM).
Parties to a Letter of Credit

Figure: 2 Parties to a Letter of Credit
The letter of credit signifies a commitment on behalf of the buyer (importer) by to
effect payment to the seller (exporter) subject to fulfillment of certain conditions by the
seller. According to terms and conditions of the L/C, the letter is required to be routed
through some intermediary banks in order to get his claim. So I see that there are a
number of parties involved in a L/C and the rights and obligations of the different
involved parties will also differ from each other. The involved parties to a L/C are
named below:-
i. Importer/Buyer
ii. Opening/Issuing Bank
iii. Exporter/ Seller/Beneficiary
iv. Advising
v. Confirming Bank
vi. Negotiating Bank
vii. Paying/Reimbursing Bank
i. The Buyer/ The Opener (The Applicant of the credit): The buyer or importer
requests his bank to issue a documentary credit on his behalf to supplier along
with requisite documents/papers as current import policy and Exchange
Regulation of Bangladesh Bank.
ii. The Beneficiary: The seller or the exporter is the beneficiary of the credit. The
credit is opened on his favor is addressed to him. The credit is opened on his favor
and is addressed to him. The credit is written undertaking issued by .
iii. The Negotiating bank: The bank which negotiates the drafts under the credit is
called the negotiating bank. The negotiating bank (i.e. Standard Chartered Bank)
must negotiate the documents under a documentary credit only if the documents
confirm strictly with the terms and conditions of the credit.
iv. The Confirming Banks: When a bank (i.e. HSBC) in the seller’s country confirms
a credit, that bank is called a confirming bank. Often the beneficiary of the credit
stipulates that a bank in his own country must confirm the credit so that he is
assured of payment as soon as the documents are presented to it. Once the credit is
confirmed by the bank, it is legally li e to honor its commitment provided the
beneficiary fulfils the terms and conditions of the credit. For undertaking this
liability the confirming bank receives a confirming commission either from the
or from the beneficiary.
The Paying Bank (The Reimbursement Bank): The bank on which the drafts or the bill
of exchange is to be drawn under the credit is called the paying bank. Generally, the
paying bank maintains the account of the issuing bank and honors the reimbursement
claim of the negotiating bank by debiting the issuing banks account. At present a
separate reimbursement authority is being sent to the paying bank by the issuing bank (
) at time of issuance of the credit provided that the advising and paying banks are
3.12.3 Remittance
Remittance is another important sector of the from where it earns a lot of
foreign exchange every year. Remittance means to send or transfer money or
money worth from one place to another. In case the bank as the media to transfer
or remit the money. Against the service it charges some commission from the
client.
3.12.3 a) Procedure of Remittance on
Figure: 5, Procedure of remittance payment

3.12.3 b) Functions of Foreign Remittance Section
Selling
Ø Selling of traveler’s cheques to Bangladesh travelers.
Ø Selling cash foreign currency in the form of draft and ties to Bangladeshi students for
education abroad.
Ø Selling of foreign currency to Bangladeshi for medical expenses.
Ø Selling of foreign exchange to nonresident stock investor.
Buying
Ø Buying of International currency from foreigner and Bangladeshi.
Ø Buying cash foreign currency from foreigner and Bangladesh.
Ø Buying of draft from Bangladeshi.
Ø Buying of International currency from FC account of Bangladeshis individual as well

as from exporters.
Ø Buying of International currency from non resident investing in shares and stocks of
Bangladesh
3.12.3 b ) Foreign Remittance Business at Bangladesh.
Ø Reliability:
Our customers have benefited from our electronic money transfer for over 150 years.
Each transfer can be tracked electronically to make sure that you receive the money your
loved one has sent.
Ø Speed:
When your loved one sends you money, within minutes you can receive it in
Bangladesh.
Ø Convenience
Chart: 7, composition of Foreign Exchange Business
4.9. Performance in Remittance of Bangladesh

Inward Remittances Flow at The foreign exchange remittances from Bangladeshi
nationals working abroad decreased by US$ 176.68 million or 16.82% to US$ 873.86
million during December 2009 compared to US$ 1,050.54 million at the end of
November 2008. During July-December 2009 remittance increased by US$ 1,028.47
million or 22.83% to US$ 5,533.20 million compared to US$ 4,504.73 million in July-
December 2008.
CHAPTER-4
Experience during the Internship Period
INTERNSHIP POSITION, DUTIES & RESPONSIBILITIES
4.1 Internship Program

I did my Internship program in Agrani Bank Principal Branch. I visited in
General Banking division, Loan and Advance Division & Foreign
Exchange Division and rotated my job in various sections of these
divisions in the Branch
4.2 Schedule of Internship Duties
I was doing my internship in Agrani bank Principal Branch for three
month. Working schedule of my internship is given below:
Name of the section Duration
General Banking Division 14 October, 2012 to 13
November, 2012=30
Days
Loan and Advance Division 14 November , 2012
to 12 December,
2013=30 Days
Foreign Exchange Division 13 December, 2013 to
11 January, 2013
Duties and Learning in different divisions and its sections

4.3 Duties and Learning in General Banking Divisions
General banking is the heart of all business banking activities. General banking
department performs the core function of bank operates the day-to-day transactions. It is
the storage point of all kinds of transaction of foreign exchange division, loans and
advance division and itself.
Sections of General Bank Divisions of Agrani Bank Limited are
Ø Deposit section
Ø Local Remittance section
Ø Bills and Clearing Section
Ø Cash section
Ø Transfer section
Ø Cash section
Ø Mail receive and dispatch section
Ø Audit section
4.3.1. Deposit section(APS, DPS, ABS, SB,STD,CD deposit)

Deposit section is one of the vital sections of any commercial bank. This section
includes Saving (SB) Account unit, Agrani Pension Scheme, Deposit Pension Scheme,
FDR Current Deposit unit. All the deposit related work is performed by this section.
Practical work: mainly I work this section with senior officer and officer
as a co- worker. They (officers) help me very much to learn the work.
The task that I was done are given below:
Ø Providing Information about various deposit scheme like APS, DPS,
SB SNTD etc
Ø To help customer for opening a deposit account
Ø To check the form which is filled up by customer
Ø Provide an signature card
Ø Data entry about the account by using computer.
Ø closing process of Account
Ø Provide statement of deposit account
Ø Issuance of cheque book
Learning point: I learnt from this section how the administrative works
are to be done for smooth operation to handling the department or
organization
4.3.2 Local Remittance Section of ABL:
It is another of important section of Agrani Bank Principal Branch. The major
function of commercial Banks is mobilization of fund. Other than this, banks provide
ancillary services to its clients. Clients need to remit money from one place to another
for their business or other purposes. Banks fulfill this need of customers by means of
remittance service. Money can be remitted domestically or internationally, which known
as local remittance and foreign remittance.
There are three ways of transferring fund domestically. The modes of transferring funds
are:
¥ Pay- Order (PO).
¥ Demand Draft (DD).
¥ Telegraphic Transfer (TT).
Practical work: There are three separate units of Local remittance

which are TT, Pay order (PO) and DD. I have been worked in every unit
during my internee ship. I work and learn from the officers as a co-worker
4.3.2.a. Payment Order / Pay Order (P.O) and Demand Draft ( DD)
This is an instrument issued by the branch of a bank for enabling the
Customer/Purchaser to pay certain amount of money to the order of a certain
person/firm/organization/office within the same clearinghoue area of the pay order-

issuing branch.
Characteristics of P.O
¥ The issuing branch and paying branch are same.
¥ Application for payment within the clearinghouse area of the issuing

branch.
¥ This may be open or can be crossed.
¥ No charge for issuing pays order for account holder.
4.3..b Demand Draft ( DD)

This is an instrument through which customer’s money is remitted to another
person/firm/organization in outside the clearinghouse area from a branch of one bank to
an outstation branch of the same bank or to a branch of another bank (with prior
arrangement between that banks with the issuing branch). This is an order instrument in
which the issuing branch gives instruction to the payee/drawer branch to pay certain
amount of money to the order of certain person/firm/organization. Commission, vat and
postage are charged on issue of DD entries for issuing DD.
Ø Providing information about pay order and Demand Draft to the
customer
Ø To help the fill up pay order form and DD form
Ø To receive pay order and DD (inward)
Ø To send pay order and DD (outward)
Ø Perform the work of pay order and DD entry (Debit and credit) in
computer systems.
Ø Check the inward Pay order and outward Pay order
are to be done for smooth operation to handling this section/unit.
4.3.2 .c Telegraphic/ Telephonic Transfer (T.T)
This is a mode of transfer of customer’s money from a branch of one bank to another
branch of the same bank through telegraphic/telephonic message. The issuing branch
used to send the message of such remittance through telegraph/telephone adding certain
code number or test number on the basis of test key apparatus developed by the
concerned bank for its different branches. The drawer and the payee are required to have
account with the bank in order for this transaction to take place. TT is issued against
cash, check, letter of instruction etc.
Characteristics of T.T
¥ Issued by one branch to other branch and message is tale-communicated.
¥ Remittance/ transfer of money are done through tested tale-messages.
¥ Remittance is affected on the basis of tested message.
¥ Test key apparatus is required.

¥ Provide information about TT. Such as who may remit Taka how it can etc.
¥ Receive TT (inward) and transfer TT (outward) by using Telephone.
¥ To perform test agreement /Evaluation of TT both of inward and outward
¥ To perform test agreement/Evaluation of online money transfer
¥ To perform test agreement/Evaluation of Demand Draft
¥ To perform test agreement/Evaluation of Pay order.
4.3.3. Bills and Clearing Section
Clearing and bills section is an important section of General Banking. This is the section
through which branch has to clear it’s inter branch and inter-bank transaction.
4.3.3.a. Outward Bills for Collection (OBC)
Customers deposit cheque, drafts etc. for collection, attaching their deposit slip.
Instruments within the range of clearing are collected through local clearinghouse. But
the other, which is outside the clearing range, is collected through OBC.
4.3.3b Inward Bills for Collection (IBC)
In this case bank will work as an agent of the collection bank. The branch receives a
forwarding letter and the bill. Next steps are:
¥ Entry in the IBC register, an IBC number given.
¥ The instrument is sent to clearing for collection.
¥ An IBC is dispatched in this regard. If dishonored: in this case the instrument is returned
to the collecting branch along with return Memo indicating the cause of dishonored.
Practical work:
I work as co worker in this section with senior officer and officer and perform some
practical work and learnt from the officers how to operate this section.
To receive inward IBC & OBC
To send outward IBC & OBC
To prepare of IBC & OBC
To perform the work of Data entry of Bills in Computer system in T 24 software.
4.3.4. Clearing and BEFTN Section

The growth of banking habits among the people has led to greater use of cheque facility
by them. The number of banks and their offices are also constantly on increase. Every
bank receives daily hundreds of cheques, drafts etc., on other banks. One method of
collecting the money of such cheques, drafts etc. are to send an official to every drawee
bank. This method is bound to prove costly and tedious. The other alternative is to fix a
common place where officials of different banks may meet daily to settle interbrain
claims. Such a method is simple and convenient since it does not involve unnecessary
traveling and actual handling of cash. The common place so fixed is termed as banker's
clearing house.
Practical work:
I discuss the concerned officer and tried to learn the system of
Clearing. they help me very much. After understanding properly
the work, I performed some clearing activities.
¥ Cheque scanning for outward clearing for getting the report of
Bangladesh within 12 PM
¥ Correction of outward and inward clearing (if any)
¥ Preparing the outward and inward report of clearing and adjusting
with the report of Bangladesh bank.
¥ Clearing the Electronic Fund transfer
Learning point: I learnt from this section how the Cheque is scanned
and how to make a report and how to adjust with the report of bb and
how administrative works are to be done for smooth operation to
handling this section/unit.
4.3.5 Cash Section

Cash section is an important section where cash transactions are made. Cash sections
demonstrate liquidity strength of a bank. It is also sensitive as it deals with liquid money.
Maximum concentration is given while working on this section. Tense situation prevails
if there is any imbalance in the cash account. There are various systems maintain by
cash officer that is under:
Practical Work Experience:

Cash section of ABL is very strong and well adorned. it’s position is inform sides of the
bank. I have tried to learn every activities of this section with concerned officers. And
practically have performed some of the activities.
¥ Receive and payment the amount.
¥ Check and count the received cash.
¥ cheque the deposit slip cheque book Properly and carefully and recived the
amount
¥ Write the domination of the currency at the back of the pay in slip or the credit
voucher and affix stamp in the slip/voucher.
¥ Enter particulars of in slip/credit voucher in the receiving cash officer book.
¥ At least, send the pay in slip/voucher to the deposit department or to the
respective department.
¥ Check of it is an open or crossed check.
¥ The date in the cheque is very crucial. Cheques are normally valid six months and
pre-dated cheques are asked to present after the date given.
¥ Balance in the account is available.
¥ The apparent tenor of the cheque. Whether any figure, date or anything has been
altered in the cheque presented. If any, then the respective officer must check
whether the client is making his signature for alteration or not.
¥ Signature of recipient is obtained on the reverse of cheque.
¥ Payment and transmitting money through online.
¥ Perform the entry activities of cash receive and payment in using computer
system.
Learning point: I learnt from this section how the all payment and receive document
like cheque, pay-in-slip is checked and how to maintain the various book of this section
and using T24 software in Cash section
4.3.6 Mail Receive and Dispatch Section
Banking is the business of correspondence. Lot of mail comes to the bank and dispatch
from the branch daily. Loss of any document causes much loss for bank. That is why
bank has to record all mail received and dispatched through the bank.
Practical work:
I discuss the concerned officer and tried to learn the system of
working of this section.
¥ Receiving the mail
¥ Ditch patch the mail
¥ to record in the registrar Book
Learning point: I have learnt how to send a mail and receive a mail and
entry in registrar book.
4.3.7 Audit section:
In every division of the Principal Branch has an internal audit section. the tusks of this
section is to ensure the appraisal activates of the division and they also work for local
branch
4.3.8 Transfer section:
All the vouchers are recorded in order at debit and credit sides of
registrar books.
4.4 Duties and Learning in Loan & Advance Division (Credit)
Credit indicates any amount which is lent to the party on a fixed rate interest and return
after a certain period of time. Major source of income of a commercial bank is the
earning from credit. Borrower selection, to credit sanctioning, recovery of credit etc are
the important tasks of this Division. Commercial Bank credit is not only important for
surviving a bank but also it is essential for developing a country’s business and industry.
Without loans country’s industrial and commercial development is not possible.
Therefore, smooth loan system in banking sector is a catalyst for economic development
of a country.
Some of the Sections of Loan & Advance Division (Credit) of Agrani Bank Principal
Branch are:
Cash Credit Section (CC)
House building Loan section
Project Loan Section
Consumer Loan Section
Loan Recovery Section
Industrial Loan classification
Card Section
Internal Audit Section
Duties and Learning in different sections of Loan and Advance

Division in Principal Branch
4.4.1 Cash Credit Section (CC)
Cash credit is given through the Cash Credit (CC) account. Cash credit account is
basically a current account, however a little difference exist between them. The
distinction between a current account and CC account is that the former is intended to be
an account with credit balance and the latter an account for drawing of advances.
Operation of cash credit is as same as overdraft. The purpose of cash credit is to meet
working capital needs of traders, farmers, and industrialists
Practical work:
I discuss the concerned officer and tried to learn the system of working of this
section and perform some activities related with cc section
¥ Proving information about CC Loan to the customer and client
¥ Providing the List of document which is necessary for application
getting loan
¥ To cheque the application and necessary documents attached to the
application.
¥ To check the document either correct or wrong.
¥ To send the application and necessary document credit committee
¥ To check the balance of cc account
¥ renewal the cc account
¥ Receive and approval the cheque of CC A/c
¥ to send the report of Project implementation
¥ Some other loan sectioning Activities
¥ And all the information has recorded to computer system by using T24
software.
Learning point: I have learnt what the documents are necessary to
open a cc account, how to prepare loan proposal, how to prepare a
implementation report. and process of giving entry in T24 Software
4.4.2 House building Loan section(HBL):
This section provides Long term loan. There are two types of HBl a) General Housing
Finance to the staffs (HF) b) Commercial house building Loan. Housing Finance to the
staffs is given to the employees and staffs of the Agrani bank Limited maximum amount
is 24 lack and payment is made on the basis of basic salary and deducted from the salary
monthly salary (monthly 55% of basic salary) . On the other hand, other customers can
get the house building as a professional.
Practical work:
¥ Proving information about HBL Loan to the customer and client
getting loan
¥ To cheque the application and necessary documents attached to the
application.
¥ papering Loan Proposal
¥ renewal the cc account
¥ Monitoring and review activities of HBL Loan
¥ Recovery of Loan
software.
open a cc account, how to prepare loan proposal, how to prepare a
implementation report. And process of giving entry in T24 Software
4.4.3 Project loan section:
If any client has been assigned to do a project (such as hotel construction) can apply for
project loan.
Requirements of the clients: Client has to submit a feasibility report over
their project and they must have a CD a/c.
Credit ceiling: Amount maintained in the application. Depending on the
present condition of the project, bank will decide how much they will
invest in that project.
Interest: Usually 15% interest is charged for project loan.
Practical work:
¥ Proving information about Project loan to the customer and client
getting loan
¥ papering Loan Proposal
¥ Monitoring and review activities of about Project loan Loan
¥ Recovery of Loan
software.
open a about Project loan account, how to prepare loan proposal, how to
prepare a implementation report. And process of giving entry in T24
Software
4.4.4 Consumer Loan Section:
It is another important section of Principal Branch of ABL. this section offers various
products like computer loan to the stuffs, Car Loan
4.5 Duties and Learning in different sections of Foreign Exchange

Division
Introduction of Foreign Exchange
Foreign Exchange refers to the process or mechanism by which the currency of one
country is converted into the currency of another country. The Foreign Exchange
Regulation Act 1947 as adopted in Bangladesh defines Foreign Exchange as Foreign
currency including any investment draws, accepted, made or issued as per clause 13 of
article 16 of Bangladesh Bank order 1972 & all deposits, credits & balances payable in
any foreign currency, any drafts, travelers house, L/C & bill of exchange express or
drawn in currency but payable in foreign currency.
Description of duties and requirements of my job in Foreign Exchange
Division of Agrani Bank Principal Branch
4.5.1 L/C Section

Practical work: I have worked in the two divisions of Foreign Exchange-L/C
Section and Foreign Remittance Section. I discuss the concerned officer and
tried to learn the system of working of this section and perform some activities
related with cc section.
The task that I was done in L/C Section are given below:
Ø Examination of L/C opening Form
Ø Fill-up the L/C Advise
Ø Fill-up the L/C Advise:
Ø Entries in to the L/C issue register,
Learning Point : I have learnt from this sections many new concept and
works. I have lernt how to help a customer to open an L/C. how it will be
recorded in both manually and computer system
4.5.2 Remittance Section

Remittance is another important sector of the ABL from where it earns a lot of
foreign exchange every year. Remittance means to send or transfer money or
money worth from one place to another. In case the bank as the media to transfer
or remit the money.
The task which I perform in the Remittance and Practically gathered the experience are
given below:
Ø Selling of traveler’s cheques to Bangladesh travelers.
Ø Selling cash foreign currency in the form of draft and ties to Bangladeshi students for
education abroad.
Ø Selling of foreign currency to Bangladeshi for medical expenses..
Ø Buying cash foreign currency from foreigner and Bangladesh.
Ø Buying of draft from Bangladeshi.
Ø Buying of International currency from FC account of Bangladeshis individual as well as
from exporters.
Ø Buying of International currency from nonresident investing in shares and stocks
of Bangladesh
Learning Point: From these two sections, I have learnt the
Foreign exchange related various tasks. I have gathered not only
bank operation related experience but also the Foreign Trade and
commerce related knowledge.
4.6 Benefit From the Practical Work from Various Sections;

Actually, this was a great opportunities for me to work practically in a
government commercial bank like Agrani bank and I have benefited in
ways. I have been able to understand the Practical work and how these
are difference from the text how to adopt with practical work.
4.7 Limitation of my duties and workings:
As there are many branches in Principal branch of Agrani bank, it was

not possible to work in every section. Another problem is that time
constraints. It was necessary in some section to spend more time to
learn the overall activities. These may be very helpful to compare the
activities of commercial bank. Some sections was full of work so that the
officers have taken a lot of time to understand me the work of the
section
CHAPTER - 05
FINDINGS AND
RECOMMENDATIONS
Agrani Bank Principal Branch has all the section of Banking. So scope of activities is
wider than any other branch. Though it is not possible to learn every activities of the
bank’s Division but I have tried to observe every section’s activities and collect of
information about those. Some I have tried to find out the major activities which is
perform by ABL’ S section officers, dissimilarities between the activities of Government
Bank and those of Private Bank, Problems, Strengthens, weakness, opportunities and
threat of ABL and on basis of Observation and comparative discussion some
recommendation are given below:
5.1 Findings
1) Officers of the desk, where workload is very high, hardly get the chance to go out for
development purpose and always feel that their duties for the organization would not be
evaluated.
2) Traditional banking system followed in some cases.
3) Banks administration cost is too high than other banks in the market.
4) All the branches are not linked on – line banking system. Only 160 branches out of
176 branches linked on on-line banking.
5) Lacks of eagerness to devote themselves for bank because of lower benefits are given
to employees.
4) Lack of financial commitment on the part of the borrower, the result being the failure
of mobilization of equity by them in future means they divert their equity in other
purpose.
5)Most of the account holders think that the interest rate on savings account is
reasonable compared to other bank.
7) It was found that the bank officials at cash sections are very efficient, but there are
some individual feels that the bank officials should improved at cash sections.
Sometimes shortage of cash in the cash section is a vital problem and in this situation the
environment of cash section is very noisy which affect all the sections.
8) Unnecessarily more employee is employed in this branch
9) Most of the customers feel safety in transactions with this bank.

10) New employees are more attentive and efficient to his work. They are concentrating
and giving individual attention to the customers. But some employees, who are formerly
employed, are not so active and efficient to his work and customers
11) The willingness to help the customers by the employees is satisfactory.
12) The banks have high relation with all level of customer..
15. All the section is now under computerized system and several officers are expert
using modern technology but some of them is not expert in using it.
16. There is lack of marketing activities
¨ Dissimilarities between abl and private bank in operation
v Political influence:
Traditionally government Bank is influenced by political power.
But private bank is less influenced by political power
v Bureaucratic complexity
Bureaucratic complexity in Management of ABL is very high in relation to general
banking function.
On the other hand, there are negligible bureaucratic complexities in Management of
private bank.
v Difference in Objective
The objective of private bank is to earning of profit.
On the other hand, the objective of ABL is to do as agent of Govt.
v Motive:
Profit is the main motive of private bank.
On the other hand, the motive of ABL is to do as agent of Govt.
v Management:
There is very strong management in ABL in GB but maintains high formalities.
On the other hand, private bank has efficient management team but low formalities.
v CBA and Officer Somiti:

Interference of CBA and Officer Somiti is very high in ABL.
On the other hand, In Private bank there is negligible interference of CBA and Officer
Somiti
There are some problems involved in the project appraisal Practice of ABL . Some of
them relate to its own institutional weakness some of them relate to its various clients.
During the internship the following findings are obtained:
5.2 Recommendations
The bank with vast and complex banking system, it is very difficult for me to
recommend. I have the practical experience in ABL for only three months, with my little
experience in shortcomings regarding operational activities of the bank. On the basis of
my observation I would like to recommend the following suggestions:
1) Fresh and young generation employees should be appointed in this department who
are familiar with the latest technology and literacy.
2) They should also focus on the marketing aspects to let customers know about their
products and offerings and more promotion should be given to attract new customer.
3) Evaluate customer's needs from their perspective and explain locally the
shortcomings.
4) Bank should be brought under automation very past/
5) Time consumed at service level should be minimized at optimum level.
6) Use of effective management information systems.
7) Use appropriate techniques in evaluating customer need professionally.
8) To deliver quality service top management should try to mitigate the gap between
customer's expectation and employee's perception.
9) Nowadays-conventional banking concept is outmoded. Now banks are offering more
ancillary services like credit card, on line services and many others. ABL should
differentiate its services adopting the modern facilities.
10) Employee’s remuneration should increase. And Promotion should be given at proper
time. It will encourage the motivation of employees.
11) As we know, periodic job change increases the productivity and readiness for
change; General banking should practice job change periodically in order to make their
employees efficient in every field and also to increase their acceptability to possible
changes.
12) ABL should publish and widely distribute Discount booklets so that they can attract
customers’ attention. Wide and effective publicity should also be given through radio,
television, newspapers and periodicals. Merchants should be also put within the purview
of the advertisement campaign in future. .
13) The salary structure for the employees should be rationalized .If the management
fails to consider the issue of appropriate pay scales, there is a strong likelihood that the
Bank will lose some efficient and experienced employees.
14) The financial and other service benefits provided by ABL should also be increased
as most of the employees feel that these are much less than those provided by other
similar banks. The management should take the matter in their prior concern in order to
keep efficient and experienced hands in the interest of a bright future of the Bank.
15) ABL should recruit employees from interns who have efficiency in work.
16) The bank should arrange various seminars every year to increase the skill of its
manpower as well as clients.
17) The management should appoint a sufficient number of women employees to deal
women entrepreneurs and professionals and understand their needs.
18) The entire department should be well informed regarding their goal and objectives.
It is essential to execute company objective into individual target.
19) There must be clear allocation of responsibilities, authority and accountability.
20) The bank should introduce more promotional activities
21) The Bank may introduce ancillary business e.g. Credit Card, ATM Services for more
profitability.
22) One stop service could be implemented to minimize unnecessary time to provide
prompt services.
23) The management of ABL should regularly administer marketing research activities
in order to keep a regular track of satisfaction levels. Regular research should also be
conducted to find out customer expectations about various service aspects.
24) The bank should focus more on existing customers in order to build strong and loyal
relationship with them as satisfied customers more aptly or certainly recommends the
bank to friends and relatives. Thus the power of relationship will foster positive Word of
Mouth Communication and will attract new customers at a lower cost.
26) ABL should set up more and more ATM Booth and increases the facilities of Card
secvice.
27) New investment schemes should be introduced to meet customer demands. Other
banks have large number of investment schemes and services. New personal savings,
future investment products should be launched to stay ahead of competition and better
satisfy customer requirements.
29. ABL should emphasis on Mobile banking.
5.3 Concluding Remark

Report preparing is not an easy task but if opportunities are available and become
supportive it becomes easy for the preparer. Like other student I have got the chance of
getting my internship and that is in the ABL of. I think I have gathered massive
experience during my internship .The reasons are more. One of the reasons that I like
most is that it covers a huge variety of functions and in all functions its significance is
more .Searching for information has led me to wide range of colorful information with
historical background. On the other hand learning scope is enough in this bank, so
knowing and learning cannot be ended.
My study was based on the “Agrani Bank Limited Principal branch .So it is not a
complete report on all the activities of this branch. However in this report the tasks
performed by me during my internship are furnished and in some cases I have added my
view points to make the report complete.
If it is to say ABL as a government bank has introduced a new dimension in the field of
innovative and benevolent banking in our country. The bank has successfully made a
positive contribution to the economy of Bangladesh with in very short period of time. Its
profit is gradually increasing. It plays a great role in collecting scattered Deposit, Loan
settlement and International Trade etc. The Bank ensures quality services to the
customers. For better growth and healthy economic position, it should introduce new
and lucrative long-term credit schemes especially for new investors and schemes for
poverty alleviation like micro credit.
I hope ABL do more work for socio-economic development besides their banking
business. To keep pace with ever-changing uncertain domestic business environment and
face the challenges of revised global economic scenario, the bank should be more pro-
active and responsive to introduce new marketing strategy to hold the strong position in
home and abroad.
At last I want to say that there may have seen some sort of problems in A to Z operation
of the bank as the bank itself is a big one. But if the management becomes more
conscious and can be free from all kinds of intervention I am sure the success of this
bank will sustain.
For the future planning and the successful operation in its prime goal in this current
competitive environment I hope this report can provide a good guideline. I wish
continuous success and healthy business portfolio of Agrani Bank Principal Branches
Bibliography
References:
[1] Annual Report of Financial Year 2011, Agrani Bank Limited
[2] Annual Report of Financial Year 2010, Agrani Bank Limited

[3] Bahar, M.H. (1989), “An Evaluation of Banks in Bangladesh: The
Exploratory Approach”, Bank Parikrama, BIBM, Seminar Proceeding
Special Issue, Vol.XIV, pp.89-95.
[4] Ahmed, F.(1990-91), Nationalized Commercial Banks In Bangladesh of

their operational and functional performance, Bank Parikrama, BIBM, Vol,
XV and XVI, Dhaka, pp.131-137.
[5] Dr. R.R. Paul, Money Banking and International Trade, 3rd Edition, page
# 6-B, 33-B
[6] Rose, Peter S, Bank Management & Financial Services, 6th Edition,
McGraw-Hill Company. 2005.
Web Sources
1) www.agranibank.org
2) www.google.com
3) www.wikipedia.org
4) www.jamunabankbd.com
5) www.bangladeshbank-bd.org
6) http:// www.sap.com/banking
7) http://www.reportbd.com
APPENDIX
List of Abbreviations
SSI Small Scale Industries
NGOs Non- Government Organizations
T.T Telegraphic Transfer
D.D Demand Draft
IBCA Inter branch Credit Transfer
SWIFT Society for Worldwide Interbank Financial Telecommunication
BB Bangladesh Bank
CIB Credit Information bouru
LIM Loan against Imported Merchandised
CRG Credit Risk Grading
LTR Loan against Trust Receipt
MSI Medium Scale Industries
LSI Large Scale Industries
---------------The End--------------
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8/31/2019 Agrani Bank internship Report by sheikh Al amin: Internship report on agroni bank By shaikh Al amin -2n part

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বার, ২ আগ , ২০১৩ গ সংর াণাগার

Internship report on agroni bank By shaikh Al amin -2n ►

The report titled “The activities of Government Commercial Bank in Bangladesh on

1.3 Objectives of the Report

1.4 Scope of the Report

1.5 Methodology of the Study

b) Data Collection Method

· Different text books.

· Different circulars passed by Board of Director (BOD)

· Official web site of ABL.

1.6 Limitations of the Study

OVERVIEW OF AGRANI BANK LIMITED

Institutions. And Agrani banking is more operating his business more

2.2 Introduction of Agrani Bank Limited

2.3 History of Agrani Bank Limited

2.4 Brief Profile of Agrani Bank

and the Board of Directors of Agrani Bank

SWIFT at ID, HO AGBKBDDH

· Strengthening the Bank’s brand recognition.

2.7 Management Hierarchy

2.8 ORGANIZATION STRUCTURE

Engineer Md.Abdus Sabur

Barrister Zakir Ahammad

Abduz Jahir Chowduhury Suffian

K.M.N Manjurul Hoque Lablu

A.K. Gulam kibria, FCA

Nagibul Islam Dipu

Ranjit Kumar Chakraborty

Syed Abdul Hamid, PhD

Syed Bazlul Karim, BPM

CHART:2 ORGANIZATION STRUCRE

Syed Abdul Hamid, PhD

Mohammad Shams-Ul Islam

Deputy Manging Directors

Chart: 2 Organization Structure

2.9 Products and Services

¥ Fixed deposit (FDR)

¥ Special Notice Time Deposit (SNTD)

¥ Non Resident Special Taka Account (NRTA)

¥ NR investors Taka Account (NRIT)

¥ Agrani Bank Pension Scheme (APS)

¥ Agrani Bank Bishesh Shanchay Scheme (ABS)

¥ Monthly Deposit Scheme (MDS)

¥ Monthly Income Scheme (MIS)

¥ Students Savings A/C (School Banking)

¥ Small Life Insurance Policy Holders A/C

¥ Freedom Fighters A/C

¥ Other Beneficiaries A/C Under Social Security’s Program

v Foreign currency Account

¥ Foreign currency (FC) A/C

¥ Non Resident Foreign Currency Deposit (NFCD) A/C

¥ Resident Foreign Currency Deposit (NFCD) A/C

¥ Exporters Retention quota (ERQ) A/C

¥ Cash Credit (Hypo)

¥ Cash Credit (pledge)