AB Bank general Banking & Foreign Exchange Business

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AB Bank general Banking and Foreign Exchange Business

Chapter 1

BACKGROUND OF THE STUDY

1.00 Introduction:

The world is tremendously competitive now. In every sphere of life and business, competition becomes more and more furious. So it is difficult to make business in these competitive markets. But general banking & foreign exchange is the most important part for any financial institution like bank.

Reason for choosing the general banking & foreign exchange business:

General banking is a very important part of a bank .without this a bank can’t run their operation and it’s very important to know about the general banking for grow the basic knowledge about banking.

Ordinary people consider foreign exchange the same as foreign money or currency notes of foreign countries like American dollar or British pound sterling.This is true only in a narrow scene. In practice, foreign exchange is not conceived the same as generally understood.

Because of foreign exchange department is varying difficult, highly technical and strictly government regulated. That’s why it is vary difficult to understand for an employee and it need to spend lot of time. During last two decade there has been turmoil in the field of the international monetary market resulting in various changes in international monetary system, even now changes are made off and on. Dealing is one of the most important activities in the department of foreign exchange Business, that’s why, chose this topic foreign exchange.

2.00 Objective:

A result actually dependsupon the proper selection of objective. Before starting any kind of work, it essential to setup the objective and make a path for achieving a good result. I have some objective about my report. Some portion of this report totally depends on specific data and some of them are assumption. That’s why I’m dividing my objective in the following type:-

• 2.01 Broad Objective:

The major objective of the Study is to fulfill the requirement of my internship. Here, at the same time, tried to find out the operation of general banking &foreign exchange business of AB Bank.

• 2.02 Specific Objectives:

· To know about the rules and regulation of general banking & foreign exchange.

· To know the general banking & foreign exchange procedure of the sample bank.

· To analyze the financial performance of foreign exchange business of sample bank.

· To identify the problems relate to the foreign exchange of the sample branch.

· To give some suggestions about the foreign exchange business of AB Bank sample branch.

3.00 Methodology of the Study:

Preparing a report is a complex and structural task. It involves a series of steps that are interrelated. Here I am describing the steps – –

3.01 Primary Source: These are those, which are collected for this specific report and which are afresh in nature, were not used before and need to be processed. Primary sources are – –

• Information that are collected through the direct conversation.
• Practical work exposure achieved from different desk.
• Daily note taken during the Internship period.

3.02 Secondary Source: The data that have collected for some other different purpose rather than this and which have passed through the statistical process.Secondary sources are the following – –

· Annual Report of AB Bank (2008)

· Operation Manual of AB Bank

· Published report on the newspaper

· Also take some data from Internet.

3.03 Data Analysis & Interpretation:

After collecting the data from the respondents through conversation, I analyzed the data by using Statistical tools. I also used various graphs and tables to make the total thing more attractive and clear.

3.03 (a) Statistical Analysis:

Forecasting:

The growing competition, rapidity of change in circumstance and the trend toward automatic demand that decision in business are not based purely on guesses and haunches rather on a careful analysis of data concerning the future course of events.

The method of least squares can be used to fit a straight line that is represented by the equation.

Where y denotes the trend values to distinguish them from the actual y values, “a” is the intercept or the value of y variable when x= 0,”b” represents slope of the line or the amount change in y variable that is associated with a change of one unit in x variable. The x variable in time series analysis represents time.

Here,

And

The variable (x) is measured as a deviation from its mean so that

And

5.00 Limitations of the study:

It’s not very easy to achieve the maximum result from any project. Lots of limitations and constraints make the whole thing tough to reach to its ultimate destination. In preparing this report, I had to face the following limitations – – –

· Bank is a very busy financial institution. All the employees remain busy constantly during office hours. Therefore, it was tough to give me time.

· Especially Foreign Exchange Is very busy part of MOHAKHALI branch.

· Three months is not enough to gather knowledge about all activities of a bank and prepare a report.

· Necessary publications, prospectus etc are not available enough in the branch.

· I could not take adequate data to prepare the report.

· Confidential data are not provided to the Internee.

If I could overcome these limitations, the report could be a better one. However, I wish if any one will do any survey about this, he/ she would be careful about these limitations and try to solve these.

Chapter 2

COMPANY PROFILE

2.00 History of The AB Bank:

AB Bank Limited, the first private sector bank under Joint Venture with Dubai Bank Limited, UAE incorporated in Bangladesh on 31st December 1981 and started its operation with effect from April 12, 1982.

Dubai Bank Limited (name subsequently changed to Union Bank of the Middleast Limited) decided to off-load their investment in AB Bank Limited with a view to concentrate their activities in the UAE in early part of 1987 and in terms of Articles 23A and 23B of the Articles of Association of the Company and with the necessary approval of the relevant authorities, the shares held by them in the Bank were sold and transferred to Group “A” Shareholders, i.e. Bangladeshi Sponsor Shareholders.As of December 31, 2007; the Authorized Capital and the Equity (Paid up Capital and Reserve) of the Bank are BDT 2000 million and BDT 4511.59 million respectively. Authorized Capital of the Bank has been increased to BDT 3000 million in the Extra Ordinary General Meeting held on July 16, 2008.Since beginning, the bank acquired confidence and trust of the public and business houses by rendering high quality services in different areas of banking operations, professional competence and employment of the state of art technology.

During the last 27 years, AB Bank Limited has opened 73 Branches in different Business Centers of the country, one foreign Branch in Mumbai, India and also established a wholly owned Subsidiary Finance Company in Hong Kong in the name of AB International Finance Limited. To facilitate cross border trade and payment related services, the Bank has correspondent relationship with over 220 international banks of repute across 58 countries of the World. AB Bank Limited, the premier sector bank of the country is making headway with a mark of sustainable growth. The overall performance indicates mark of improvement with Deposit reaching BDT 53375.35 million, which is precisely 26.85% higher than the preceding year. On the Advance side, the Bank has been able to achieve 30.76% increase, thereby raising a total portfolio to BDT 40915.35 million, which places the Bank in the top tier of private sector commercial banks of the country.

On account of Foreign Trade, the Bank made a significant headway in respect of import, export and inflow of foreign exchange remittances from abroad.

2.01 Mission &Vision:

Mission is the main purpose of any firm. It means to know and show the people path to reach the destination. Each generation is unique through their need and preference. As the first private local bank of Bangladesh, it was not easy to serve several generations of clients for the past 27 years. Theirs Mission & Vision are:-

VISIONSTATEMENT:

`To be the trendsetter for innovative banking with excellence and perfection’

MISSIONSTATEMENT:

`To be the best performing bank in the country’

2.02 Slogan:

BONDING ^{Since 1982} GENERATION

Each generation is unique through their need and preference. As the first private local bank of Bangladesh, it was not easy to serve several generations of clients for the past 27 years .The differences prevail in all aspects of their life except their loyalty to us.

AB Bank has remained a bridge-builder between generations for the past 27 years through its reliable, modern and efficient services.

2.03 Organ gram:

2.04 OPERATION OF AB BANK LTD

DEPARTMENT OF ACCOUNTS:

Like other banks AB Bank LTD have a good, experienced, friendly and well managed accounts department team. At this department their duties are:

1. Opening bank accounts.
2. Issuing checkbook.
3. Issuing deposit book.
4. Issuing bank account statement
5. Issuing bank account solvency certificate

Accounts Opening:

1. Savings account
2. Fixed account
3. Current account
4. Salary account
5. Joint account
6. Foreign currency account
7. Sole Proprietorship account
8. Partnership account
9. Limited company account

Savings account:

The bank provides savings account services for the ease of its clients. It offers both personal and corporate savings account to its client in every branch. Its rate of interest is 6% minimum requirement is Tk. 10000/=.

Fixed account:

The bank provides fixed account services for the ease of its clients. It offers both personal and corporate fixed account to its client in every branch. Its rate of interest is 9% to 8% minimum requirement is Tk. 10000/=. Time required minimum 3mounths.

Current account:

The bank provides current account services for the business transaction of its clients to facilitate their day-to-day operation. The amount deposited can be withdrawn at any time. It offers both personal and corporate current account to its client in every branch. There is no rate of interest, minimum requirement is Tk. 10000/=.

Salary account:

The bank provides salary account services to its clients for the drawn and withdrawn of their salaries. It offers personal account to its clients in every branch. There is no rate of interest, minimum requirement is Tk 10000/=.

Joint account:

The bank provides joint account services for the ease of its clients. It offers both personal and corporate joint account to its client in every branch. Its rate of interest is 6% minimum requirement is Tk 10000/=.

Foreign Currency account:

The bank the Nationals of Bangladesh living abroad can remit open Foreign Currency Account in USD/GBP/EUR/JPY for NRBs. Foreign Currency. Nominee of Account holder can able to operate this Account. Interest is paid in respective Foreign Currency. Rate of interest is 6.5% to 12%.

Sole Proprietorship account:

The bank provides Sole Proprietorship account services for the business transaction of its clients to facilitate their day-to-day operation. The amount deposited can be withdrawn at any time. It offers corporate Sole Proprietorship account to its client in every branch. There is no rate of interest, minimum requirement is Tk. 10000/=.

Partnership account:

The bank provides Partnership account services for the business transaction of its clients to facilitate their day-to-day operation. The amount deposited can be withdrawn at any time. It offers corporate Partnership account to its client in every branch. There is no rate of interest, minimum requirement is Tk 10000/=.

Limited Company account:

The bank provides Limited company account services for the business transaction of its clients to facilitate their day-to-day operation. The amount deposited can be withdrawn at any time. It offers Limited company account to its client in every branch. There is no rate of interest, minimum requirement is Tk. 10000/=.

Document required for account opening:

• Bank’s prescribed Account Opening application form signed by the partners in front of BM/RM/CSM
• Two Passport Size Photograph of the Account holder(s) attested by the introducer.
• Specimen Signature Card (To be signed by the applicant in front of BM/RM/CSM)
• Estimated Transaction Profile and
• Any of the Identification Documents (Current valid passport, Valid driving license, Voter ID Card, Armed Forces ID card, A Bangladeshi employer ID card bearing the photograph and signature of the applicant, A certificate from any local government organs such as Union Council chairman, ward commissioner etc. (In this case the certifier should attest applicant’s photograph along with signature)
• Certified copy of Partnership Deed/ Agreement
• List of the Partners with Address
• Extract of resolution of the partners Meeting
• Copy of valid Trade License
• Photograph of the signatories/ Partners
• Specimen signature card (To be signed by the signatories in front of BM/RM/CSM
• Introducer’s signature in the A/C opening form and at the back of the photograph(s) of Account holder(s).
• Identity of all Partners/ Directors must be verified in line with the requirements for personal customers. Where a formal partnership agreement exists, a mandate from the partnership authorizing the opening of an account and conferring authority on those who will operate it should be obtained.
• Evidence of the trading address of the business or partnership should be obtained and a copy of the latest report and accounts (audited where applicable).
• An explanation of the nature of the business or partnership should be ascertained (but not necessarily verified from a partnership deed) to ensure that it has a legitimate purpose.
• The personal identity of the proprietor of the Firm has to be established by any of the documents as mentioned in Individual or Joint Customer category. If the Trade License carries the photo and signature of the Proprietor this is not required.
• Permission from Bangladesh Bank (For Buying House, Indenting or other specific businesses)
• TIN issued by Income Tax Authority
• The personal identity of the proprietor of the Firm has to be established by any of the documents as mentioned in Individual or Joint Customer category. If the Trade License carries the photo and signature of the Proprietor this is not required.
• Certified copy of the Memorandum & Articles of Association of the Company
• Certificate of incorporation
• Certificate of commencement of Business (For Public Limited Companies only)
• Extract of the Board resolution sanctioning the account opening and signing authority
• List of names with Appointment letter and Specimen Signature of the Persons authorized to operate the Account.

Issuing check book:

The bank issuing check book to their clients who have a bank account in the bank to withdrawn their cash. For the security of the deposit amount the check book is issuing to the account holder or his/her authorizes person. Charge of issuing check book is Tk. 34.50/=. The bank issuing 100 pages, 50 pages, 20 pages check book.

Issuing deposit book:

The bank issuing deposit book to its clients, who have a bank account in the bank to deposit their cash. There is no charge for issuing deposit book.

Issuing bank account statement:

The bank issuing bank account statement to their clients who have a bank account to know the transaction of their cash. Charge of bank account statement is Tk. 150/= for 1 month, Tk. 250/= for 6 months, Tk. 550/= for 1 year.

Issuing bank account solvency certificate:

The bank Issuing bank account solvency certificate to their clients who have a bank account to provide them service where financial backup is needed, Charge of bank account solvency certificate is Tk. 100/=.

CREDIT DEPARTMENT

Through financial intermediation the bank seeks revenue for employment of its funds where (a) there is a profit (b) risk is minimal (c) the cost of administration is low.

Syndication or club financing is a growing concept in Banking Arena of Bangladesh. Syndicated finance diversifies the risk of one bank on a single borrower and increases the quality of loan through consensus or cumulative judgment and monitoring of different banks / financial institutions.

AB Bank, the first bank in the private sector also took initiative to adapt to this growing concept.

Since 1997 to 2007 (till date), AB Bank has raised total Tk. 25989.56 Lac as Lead Arranger. The following banks from time to time have been our partners in these syndications: Dhaka Bank, IPDC, EXIM Bank, Bank Asia, Oriental Bank, NCC Bank, The City Bank, Trust Bank, Bank Asia.

AB Bank has also participated in different syndications arranged by other Banks, out of which till date 6 (six) syndication has successfully been completed. AB Bank exposure in these completed syndications was Tk. 4700 Lac.

At the moment AB has participation in 19 (nineteen) syndicated facilities. AB Bank’s exposure in the ongoing syndication is Tk. 51560.29 Lac, which is diversified, in the following ten sectors:

Unsecured Loans

Secured Loans

Secured Loans

Notes:

1. Interest rate on overdraft (OD) under Working Capital & Commercial Lending categories will be higher by 0.50% than that of other funded limits availed by same customer.
2. For lending against ABBL FDR, the rate is 2.00% above the rate of the instrument subject to minimum 13.00%.
3. Exposure under cash collateral of other banks requires clearance from Financial Institutions

SME Loan

Considering the volume, role and contribution of the SMEs, in the last two decades AB Bank has been patronizing this sector by extending credit facilities of different types and tenor. As of now 54% of the bank’s total loan portfolio is segmented to the SMEs which deserve all out attention in their plans, projections and forecasting.

As such the bank has emphasized on the following issues:

• To provide the best services to the SME sector
• To increase the SME portfolio of ABBL significantly
• To improve the quality of ABBL’s portfolio

SME Sectors in which AB Bank has participated so far:

• Agro machinery
• Poultry
• Animal Feed
• Dairy Product
• Fruit Preservation
• Hotel & Restaurants
• Garments Accessories
• Leather products
• Plastic product
• Furniture: Wooden & Metal
• Ink
• Paint
• Printing & Packaging
• Wire & Cable
• Aluminum
• Cement and Lime Plaster
• Clinics and Hospitals

INVESTMENT DEPARTMENT

In order to cater the demand of client AB Bank has segmented its portfolio in terms of loan size. As per this segmentation any loan over Tk. 10.00 Core falls under the purview of Large Loan Unit.

In AB Bank, there is also a separate Project Finance unit who evaluate the business. The unit is entrusted to handle the portfolio in a focused manner. AB Bank is always in fore front to support establishment of new projects of diverse nature, which will help to broaden the manufacturing arena vis-à-vis to generate to employment.

At the moment AB Bank‘s exposure in Large Loan & Project Finance portfolio is distributed in the following sectors:

DEPARTMENT OF DEPOSIT AND COLLECTION:

The deposited amount and its trend shown how the bank is performing in the banking business and how much attractive the bank is to the general customers.

CORPORATE BANKING:

AB Bank provides complete range of solutions to meet Corporate Customers’ requirement. Their Corporate Banking solutions include a broad spectrum of products and services backed by proven, modern technologies.

Corporate Lending

Their specialist teams offer a comprehensive service providing finance to large and medium-sized businesses based in Bangladesh. For more information as to how we might best meet your corporate debt needs, please contact us at our Corporate Head Office.

Structured Finance

We have a specialist Structured Finance Team who arrange and underwrite finance solutions including Debt and Equity Syndication for financial sponsors, management teams and corporate. Also we provide corporate advisory services. AB bank aim to provide tailored financing solutions with a dedicated team who can rapidly respond to client needs.

Following are some of the products and financial tools of Corporate Banking:

• Project Finance
• Working Capital Finance
• Trade Finance
• Cash Management
• Syndicated Finance, both onshore & off-shore
• Equity Finance, both onshore & off-shore
• Corporate Advisory Services

ISLAMI BANKING:

To provide the Islamic banking services in accordance with the principles of Islamic Shariah, AB Bank has established Islamic Banking Wing and started it’s functioning by opening full-fledged Islamic banking branch on 23.12.2004. The branch is known as AB Bank Islami Banking Branch, Kakrail, and is situated at 82, Kakrail, Ramna, Dhaka.. A dedicated team of experienced Islamic bankers is working under his active guidance both at head office and branch level. A competent Shariah Council consisting of Islamic scholars, Ulema, Fukaha and Islamic bankers headed by Mr. Shah Abdul Hannan, a prominent Islamic scholar and former Secretary, Government of Bangladesh has also been formed to guide the Islamic banking affairs. Board of directors as well as management of the bank are very much interested to promote Islamic banking system in the bank aiming at opening more Islamic branches in the near future. AB Bank has already obtained membership of Islamic Banks Consultative Forum (IBCF) and Central Shariah Board for Islamic Banks of Bangladesh.

The goals and objectives of Islamic banking Wing are as under:

• To facilitate the Islamic banking system in the country
• To create new entrepreneurs and to arrange required finance for them
• To play effective role for socio economic development of the country
• To give assistance in launching welfare oriented economic system under Islamic values Under this wing.

AB Bank extends the following Islamic banking services:

• Deposit services
• Investment services

Under Deposit services the following services are being rendered:

• Mudaraba Savings Account
• Mudaraba Short Noticed Account
• Mudaraba Term Deposit Account (with different terms)
• Mudaraba Monthly Profit Account
• Al-Wadiah Current Deposit Account
• Mudaraba Deposit Pension Scheme

Besides Mudaraba Hajj Deposit Scheme and some other schemes are under process.

Investment Services

AB Bank Islmic Banking Wing provides investment facilities for project finance, working capital finance, SME finance, consumer / retail baking finance etc. under following modes:

• Hire-Purchase under Shirkatul Melk (HPSM): Under this mode the Bank and the client procure asset such as machinery, land , car etc. on equity participation basis. The Bank rents out its portion of assets to the client for a certain period. The client pays the rental with a part of principal amount on monthly / quarterly basis. The client gets its proportionate ownership with the payment of monthly / quarterly installments. On maturity, total ownership of the assets automatically goes to the client as and when final payment of the account is made.
• Ijara or Leasing: It is more or less like the HPSM. In this case equity participation may or may not exist. Ownership of the asset is not automatically transferred to the client with the payments of installments. On maturity, the bank transfers the ownership to the client on payment of certain transfer fees.
• Bai-Muajjal / Bai-Murabaha: These modes are applicable for working capital finance. Under these schemes bank purchases goods / raw materials as per requirement of the client. In case of Bai-Muajjal bank receives the sales proceed on deferred payment basis. On the other hand in case of Bai-Murabaha Bank receives the sale price at the time of delivery of the goods / raw materials. Before handing over the goods / raw materials the bank generally keeps the same in its custody under pledge.
• Musharaka : Under this mode the Bank and clients jointly participate in a project, in a scheme or project. Profit is shared between the Bank & the concerned client as per pre-agreed ratio. On the other hand loss is shared according to capital ratio.
• Mudaraba: Under this mode bank finances the scheme as a Shaheb-Al-Maal (owner of the capital). Profit is shared between the two sides as per pre-agreed ratio.

Sector of Investment:

Islamic Banking Wing of the bank finances in all sectors i.e., Industry, business, Agriculture, Real Estate etc. if purpose of the investment is permissible under Islamic Shariah.

Limit of Investment:

Investment is offered to the extent of single borrower exposure limit as fixed by the Bangladesh Bank from time to time.

Foreign Trade:

Islamic Banking Wing provides the following services at its foreign trade desks:

• Opening of LCs
• Post -Import Finance
• Export bill purchase and negotiation
• Pre-shipment financing etc.

AB Bank Islamic Banking Wing has been continuously trying to expand its service horizon keeping the necessity of valued clients in view and upholding the principle of Islamic Shariah.

MERCHANT BANKING WING (MBW)

ABBL launched its Merchant Banking operations in the year 2003. As a fully-fledged merchant banker, we provide the following services:

1. Portfolio Management
2. Issue Management
3. Underwriting
4. Corporate Advisory
5. Bankers to the Issue
6. Private Placement

The Merchant Banking Wing (MBW) of ABBL has made notable progress and is presently equipped to serve customers’ needs by offering a comprehensive range of financial solutions. We have also launched Custodial Services with a view to provide one-stop Capital Market services to our valued clients.

We understand an entrepreneur’s need for stability, trust, innovation and creativity required for the consolidation and growth of investments and endeavor to prosper. The professionals in our MBW with its state of the art integrated computerized system, are always there to provide their vision, knowledge and service for customers success.

Services Provided by Merchant Banking Wing (MBW)

MBW provides diversified services for the Capital Market to investors and sponsors group. Ever since its inception, MBW has consolidated its presence as a market leader in the DSE’s total turnover. The offered services are:

Portfolio Management Service

Non-Resident Bangladeshi Investors’ Discretionary Account

Issue Management Service

Private Placement

Corporate Advisory

Underwriting

Bankers to the Issue

Research Notes on Listed Companies

ABBL, measure our success by the number of satisfied customer

within a time frame.

Future Plans of (MBW)

To extend AB Bank Merchant Banking services across the country; MBW has already launched its operation in Agrabad (Chittagong). AB Bank going to open 3 new service networks in Mohakhali (Dhaka), Uttara (Dhaka) and Sylhet soon.

Future Product

MBW plans to launch SHARIAH based portfolio management schemes for intending investors.

New Business

In addition, AB Bank will also expand its operations in the investment banking in the following areas:

CUSTODIAL SERVICE

Customers:

Investors Who Are Interested to Invest In the Bangladesh Capital Market

• Non Resident Bangladeshi (NRBs)
• Foreign Institutional and individual clients
• Local Institutions
• Sponsors’ group and High net worth client

• Services:Safe custody of client securities
  • Foreign Trade Execution and Settlement
  • Share transfer in the name of client
  • Complete the Dematerialization process as per client request

• IPO, Private Placement & Right share subscription as per client instruction with deposit

• All types of corporate action that includes cash dividend, bonus share and right share collection

• Open BO account

• Instant information regarding client securities position as per their request

• Quarterly reporting to the client by Custodial Department

BROKERAGE SERVICE:

AB Bank Foundation (ABBF) is a subsidiary company of AB Bank Limited having holding 99.60% shares of the ABBF. The company was first established under the trust deed constituted and registered on the 14th day of May 2002. Subsequently the trust by a resolution of its Board of trustee in its 3rd meeting held on 29.12.2002 resolved to cancel the Trust Deed and utilize the trust fund for the foundation of a company limited by guarantee primarily for charitable purpose. Then the company was incorporated on 3rd day of November 2003 under section 28 of Companies Act 1994, a company limited by guarantee. The certificate of incorporation is C-558(10)/2003.

The ABBF and its activities:

AB Bank Foundation (ABBF) is one of the country’s leading securities broker houses of Dhaka Stock Exchange (member # 201) and Chittagong Stock Exchange (member # 101). ABBF has started its operation by soft launching on 28th August 2006. Initially, we have started our operation by giving service to client of AB Bank Merchant Banking wing. We have already started our operation in full swing in our corporate head office and Chittagong. In near future, we will start our Mohakhali and Agrabad branch operation.

Services:

1. Brokerage Services

AB Bank’s subsidiary, AB Bank Foundation, which has corporate memberships on the Dhaka and Chittagong Stock Exchanges, can act as brokers on behalf of local and foreign individual and institutional client to trade in the local capital market. AB Bank’s Sales & Trading Department will also support brokerage service for offloading shares through direct listing.

2. CDBL Services as full service Depository Participant (DP)

As a full service depository participant, AB Bank Foundation provides following services,

a) BO (Beneficial Owner) accounts opening and maintenance.

b) Dematerialization & c) Rematerialization

c) Freeze (freeze request and release request) and suspensions

d) Pledging, unpledging and confiscation

e) BO ISIN balances and master maintenance enquiry

Future Products

To extend our Merchant Banking services across the country, MBW has already launched its operation in Agrabad (Chittagong). We are going to open 3 new service networks in Mohakhali (Dhaka), Uttara (Dhaka) and Sylhet soon.

New Business

In addition, AB Bank will also expand its operations in the investment banking in the following areas:

NON-RESIDENT BANGLADESHI (NRB) BANKING

Opening of Foreign Currency A/C:

ABBL open Foreign Currency Account in USD/GBP/EUR/JPY for NRBs. Foreign Currency can be remitted by the Nationals of Bangladesh living Abroad earned by them as wage earners or from other sources. The deposit amount can also be used for remittance to other countries as per their requirement. Nominee of Account holder can also able to operate this Account.

NFCD:

ABBL issued Foreign Currency Fixed Term Deposit in USD/GBP/EUR with different tenure. Interest is paid in respective Foreign Currency. Rates of Interest are published in our daily Exchange Rate.

Wage Earners Development Bond:

These Bonds can be issued from the balance of the FC account with tenure for five years. Rate of interest is 12% p.a. in BDT.

USD Premium Bond:

These Bonds can be issued from the balance of the FC account with tenure for Three years. Rate of interest is 7.5% p.a. in BDT.

USD Investment Bond:

These Bonds can be issued from the balance of the FC account with tenure for Three years. Rate of interest is 6.5% p.a. in USD.

In addition to the above, ABBL also have Drawing Arrangements with 14 (Fourteen) Exchange/Money Transfer Remittance Houses all over the globe to facilitate fast, reliable and hassle-free inward remittance to the expatriate Bangladeshis around the world. We also have special arrangements to credit Beneficiary’s account maintained with us on the same day through our extensive real time on-line network.

MONEY TRANSFER

Western Union a fast, reliable and convenient way to send a money transfer. Western Union Financial Services Inc. U.S.A. is the number one and reliable money transfer company in the world. This modern Electronic Technology based money transfer company has earned worldwide reputation in transferring money from one country to another country within the shortest possible time.

AB Bank Limited has set up a Representation Agreement with Western Union Financial Services Inc. U.S.A. Millions of people have confidence on Western Union for sending money to their friends and family. Through Western Union Money Transfer Service, Bangladeshi Wage Earners can send and receive money quickly from over 280,000 Western Union Agent Locations in over 200 countries and territories worldwide- the world’s largest network of its kind, only by visiting any branches of AB Bank Limited in Bangladesh

CARDS

In the present context of banking business in the world, Card is the future of any bank. Electronic payment system is now ruling the world and some days from now cash transactions system will turn into a history found only in the textbook.

AB Bank Limited is one of the leading first generation private sector commercial banks with Branch Network all over the country. The Bank started issuing VISA Credit Cards from the end of year 2004 as a principal member of VISA International.

Brief description of different features:

Card Conversion & Balance Transfer Plan

‘Card Conversion & Balance Transfer Plan’ to AB Bank VISA Credit Card will be extended towards all local Credit Cardholders of the market, provided that their ‘other banks’ credit card is in ‘regular’ state, not in ‘overdue’ state. Cardholders will repay the approved transferred amounts to AB Bank Credit Card Account in monthly installments stated in their monthly statements. Other bank credit cardholders having regular payment history will also be allowed to apply for this facility along with their new AB Bank Credit Card application form. Any one can convert his/her other bankcard to AB Bank Card and get interest facility @ 19.95% on outstanding.

EasyBuy

EasyBuy‘ Installment Plan to AB Bank VISA Credit Card will be extended towards all AB Bank Visa Credit Cardholders. Cardholders can convert any retail purchase done using AB Bank credit card into an installment scheme where they can pay back the amount at rate of interest of 19.95% per annum over a tenor ranging from 6 months to 48 months.

Easy, convenient and affordable

Under the Easy buy program, cardholder can choose own installment plan, ranging from 6 to 48 months.

1. Simple procedure, no documentation, no down payment
2. Available in comfortable payment options of 6 months to 48 months
3. Process just a call away

No cash advance fee

No cash advance fee for cash withdrawal from AB Bank ATM Booths & Tk.10 only per cash withdrawal will be charged from other Q Cash ATM booths. Market rate is Tk. 125 per cash withdrawal.

Auto bills pay facility

Hassle free monthly payment from AB Bank Account holders

Higher transaction limit

AB Bank VISA card gives you the facility to withdraw up to Tk. 60,000 or 50% of your credit limit (whichever is lower) of the credit limit from any ATM with Visa logo.

Lot more features are in the pipeline to add more value to satisfy AB Bank customers.

Future Plans

Introduction of different types of credit cards: To meet the requirements of different segments of customers AB Bank plans to introduce different types of cards very soon.

Establishment of new Card Center: A State-of-the-Art card center will be inaugurated soon in Motijheel with 24 hours customer service facility.

Opening of sales and service centers: With the motivation to reach near to people, AB Bank plans to establish several card sales and service centers in major cities of the country.

TECHNOLOGICAL PERFORMANCE OF ABBL:

Business Automation

Being the first private sector Bank of the country, ABBL has prided itself in the quality of