HR Policies and Practices in EBL

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HR Policies and Practices in EBL


The banking system at independence consisted of two branch offices of the former State Bank of Pakistan and seventeen large commercial banks, two of which were controlled by Bangladeshi interests and three by foreigners other than West Pakistanis. There were fourteen smaller commercial banks. Virtually all banking services were concentrated in urban areas. The newly independent government immediately designated the Dhaka branch of the State Bank of Pakistan as the central bank and renamed it the Bangladesh Bank. The bank was responsible for regulating currency, controlling credit and monetary policy, and administering exchange control and the official foreign exchange reserves.

The Bangladesh government initially nationalized the entire domestic banking system and proceeded to reorganize and rename the various banks. Foreign-owned banks were permitted to continue doing business in Bangladesh. The insurance business was also nationalized and became a source of potential investment funds. Cooperative credit systems and postal savings offices handled service to small individual and rural accounts. The new banking system succeeded in establishing reasonably efficient procedures for managing credit and foreign exchange. The primary function of the credit system throughout the 1970s was to finance trade and the public sector, which together absorbed 75 percent of total advances.

The government’s encouragement during the late 1970s and early 1980s of agricultural development and private industry brought changes in lending strategies. Managed by the Bangladesh Krishi Bank, a specialized agricultural banking institution, lending to farmers and fishermen dramatically expanded. The number of rural bank branches doubled between 1977 and 1985, to more than 3,330. Denationalization and private industrial growth led the Bangladesh Bank and the World Bank to focus their lending on the emerging private manufacturing sector. Scheduled bank advances to private agriculture, as a percentage of sectoral GDP, rose from 2 percent in FY 1979 to 11 percent in FY 1987, while advances to private manufacturing rose from 13 percent to 53 percent.

The transformation of finance priorities has brought with it problems in administration. No sound project-appraisal system was in place to identify viable borrowers and projects. Lending institutions did not have adequate autonomy to choose borrowers and projects and were often instructed by the political authorities. In addition, the incentive system for the banks stressed disbursements rather than recoveries, and the accounting and debt collection systems were inadequate to deal with the problems of loan recovery. It became more common for borrowers to default on loans than to repay them; the lending system was simply disbursing grant assistance to private individuals who qualified for loans more for political than for economic reasons. The rate of recovery on agricultural loans was only 27 percent in FY 1986, and the rate on industrial loans was even worse. As a result of this poor showing, major donors applied pressure to induce the government and banks to take firmer action to strengthen internal bank management and credit discipline. As a consequence, recovery rates began to improve in 1987. The National Commission on Money, Credit, and Banking recommended broad structural changes in Bangladesh’s system of financial intermediation early in 1987, many of which were built into a three-year compensatory financing facility signed by Bangladesh with the IMF in February 1987.

2.2 Banking in Bangladesh


A Bank is known by the functions it discharges. It may be defined only by stating what it performs.

Sir John Paget says, that no person or body, corporate or otherwise, can be a banker who does not (a) take deposit accounts (b) take current accounts, (c) issue and pay cheques and (d) collect cheques, crossed and uncrossed, for his customer.

Section 5 of the Bank Company Act, 1991 defines banking as the Accepting, for the purpose of lending or investment, of deposits of money from the public repayable on demand or otherwise and withdrawal by cheque, draft, order or, otherwise. The Act further provides that a banking company which transacts the business of banking must add the words Bank/Banking/Banker after its name.

What is Scheduled and Non-Scheduled Bank ? :

Banks may be divided into scheduled banks and non-scheduled banks. Banks having paid up capital and reserves of Tk.______ and whose names have been enlisted by the Bangladesh Bank in their approved list of banks are called Scheduled Banks. There are at present _____ scheduled banks in Bangladesh:

Commercial Banks:

Nationalised banks: 3

Sonali Bank, Agrani Bank, Janata Bank.

Foreign Banks: 7

ANZ Grindlays Bank, Standard Chartered Bank, American Express Bank, Habib Bank Ltd., State Bank of India, Banque Indosuez, National Bank of Pakistan, ..

b) Development Banks: 4

Bangladesh Shilpa Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Bank of Small Industries and Commerce (BD) Ltd.

c) Private Commercial Banks: 23

Bangladeshi ownership: 20

. Pubali Bank Ltd., Agrani Bank Ltd., Arab Bangladesh Bank Ltd., United Commercial Bank Ltd., The City Bank Ltd., IFIC Bank Ltd., National Bank Ltd., Eastern Bank Ltd., NCCBL.,., Dhaka Bank Ltd., Premier Bank Ltd., Prime Bank Ltd., Standard Bank Ltd., The Bank One Limited, EXIM Bank Ltd., Trust Bank Ltd., First Security Bank Ltd., The Bank of Asia Ltd.,

Jointly owned by foreigners and Bangladeshis: 3

Islamic Bank (Bangladesh) Ltd., Al-Baraka Bank (Bangladesh) Ltd., Agrani Bank Ltd.,

Besides there are a number of Co-operative banks which may be termed as non-scheduled banks. Other financial institutions:

e) Besides the aforesaid commercial banks and specialized banks we have got two other financial institutions which perform in fact development by industries in the country. These are: Bangladesh Shilpa Rin Sangstha (renamed as Development Bank Ltd.), Investment Corporation of Bangladesh(ICB).

2.3 Establishment and status of the Bank:

Agrani Bank Limited has been incorporated as a Public Limited Company on May 17, 2007 vide Joint Stock Companies and Firms’ certificate of incorporation No. E- 66888 (4280)/07. The bank has taken over the business alongside assets, liabilities, rights and obligations of the former Agrani Bank (emerged as a Nationalized ) Commercial Bank in 1972, pursuant to the Bangladesh Bank (Nationalization) order No. 1972 (P.O. No.-26 of 1972) on 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 the Bank on behalf of Agrani Bank Limited on November 15,2007 with retrospective effect from 10 july,2007.

The Bank’s entire shares are held by the Government of the People’s Republic of Bangladesh and 07 other shareholders nominated by the Government. The Bank has 866 branches as on 31, December, 2007 with no overseas branch. The Bank has, however, two wholly-owned subsidiary companies named Agrani Exchange House (pvt.) Limited in Singapore and Agrani Remittance House SDN, BHD in Kuala Lumpur, Malaysia.


Agrani Bank Limited, a leading commercial bank with 867 outlets strategically located in almost all the commercial areas throughout Bangladesh, overseas Exchange Houses and hundreds of overseas Correspondents, came into being in 1972 immediately after the emergence of Bangladesh as an independent state. It started functioning as nationalized commercial bank taking over assets and liabilities of the erst while Habib Bank ltd and commerce Bank ltd. functioning in the East Pakistan.

It has been corporatised on 15th November.2007 and emerged as Agrani Bank Limited (ABL) taking over assets, liabilityand goodwill of Agrani Bank.

Agrani Bank Limited is governed by a Board of Directors consisting of 11(eleven) members headed by a chairman. The Bank is headed by the Managing director & Chief Executive Officer; Managing director is assisted by Deputy Managing Director and General Managers. The bank has 7 Circle offices, 30 Divisions in head office, 52 zonal offices and 867 branches including 10 corporate and 40 AD( authorized dealer) branches. The corporate and AD branches are authorized to deal in Foreign exchange business.

The authorized capital of the Bank is Tk. 800 crore.


To become a leading bank of Bangladesh operating at international levels of efficiency, quality and customer service.


We will go operating ethically and fairly within the stringent framework set by our regulators. We will go fusing ideas and lessons from best practice to explore newer ways to stay stronger and more efficient, nimble, and adaptable, and competitive as will. We will keep abreast of the advances of information and communication technology for the benefit of our customers and employees. We will invest to strengthen the future of the bank.


To adopt and adapt modern approaches so as to stand supreme in the banking arena of Bangladesh.


We believe in integrity, transparency and accountability, entwined with ingenuity that will provide high standard of service to all our customers and stakeholders.

2.5 Organogram

Corporatisation has necessitated the Bank to restructure its Organogram in force. As such existing positions, portfolios and functional jurisdictions of GMs, DGMs and heads of zones will be re-framed or re-designated. In order to run the gamut of the Bank’s activities mire efficiently and effectively, some divisions under head office will be merged together and some new ones will also be established.

Proposed Organogram For Agrani Bank Limited

The organization have carried their business by using 7 Circle offices, 30 Divisions in head office, 52 zonal offices and 867 branches including 10 corporate and 40 AD (authorized dealer) branches. From the proposed ORGANOGRAM I have omitted the divisional practice.

Ø ORGANOGRAM For Head Office


In the organogram the Head office works for basically works for planning through strategic view and making decision to match with mission, vision, motto and credo. For other offices to gather information and analyzing those according to various factor such as; demography, gender etc. toward subordinate offices. It can crate better practice a participative management. From Head offices planning the other offices follow that and try implement in the rural areas.

Organogram of Agrani Bank Limited:

2.6 Division of ABL.
Division Name
Agrani Bank Training Institute
Audit Implementation Division
Audit & Inspection Division
Board Division
Branch Control Division
Central Accounts Division
Common Services Division
Development & Co-ordination Division
Disciplinary Action Division
Engineering & Establishment Division
Foreign Currency Management Division
Fund Management Division
General Credit Division
Human Resources Division
Information Technology Division
Industrial Credit Division-1
Industrial Credit Division-2
International Trade Division
Law Division
Loan Classification Division
Loan Recovery Division
MD’s Squad
Personnel Division
Planning, Research & MIS Division
Printing & Stationery Division
Public Relation Division
Reconciliation Division
Remittance Management Division
Rural Credit Division
SME & Micro Credit Division

3.1 Board of Directors

(As on 31. 12.2007)

Chairman :- Siddiqur Rahman Choudhury

Former Secretary

Ministry of Finance

Government of the People’s Republic of Bangladesh

Directors AKM Shamsuddin Former Secretary Ministry of Primary and Mass Education Govermment of the people’s Republic of Bangladesh

Nasiruddin Ahmed Member, Privatization Commixxion and Secretary to the

Ranjit Kumar Chakraborty Joint Secretary, Finance Division Ministry of finance and project Director Financial Management reform Programme (FMRP)

Air cdre Syed Imtiaz Hussain,ndu, psc

Director, Training Armed Forces Division

Captain Jamilur Rahman Khan (Retd.) Former Joint Secretary

Muhammad Aftab Uddin Khin Former Additional Secretary Cabinet Division

Managing Director (additional charge ) Syed Abdul Hamid

Company Secretary

Md. Khalilur Rahaman Deputy General Manager

Audit Committee

(As on 31. 12. 2007)

Board of Trustees of Agrani Bank Ltd. Employees’ Provident Fund

(As on 31. 12. 2007)

Nasiruddin Ahamed

Director of the Board


Nasiruddin Ahamed

Director of the Board


Ranjit Kumar Chakraborty

Director of the Board


Syed Abdul Hamid

Managing Director

(additional charge )


Air cdre Syed Imtiaz Hussain,ndu, psc

Director of the Board


Md. Fayekuzzaman

Deputy Managing Director


Md. Abdul Latif Sikdar

Deputy General Manager


  1. Qasem and Co.

Chartered Accountants

Gulshan Pink city Suit 1-3, Level 07 Plot No. 15, Road No. 103

Gulshan Avenue, Dhaka-1212

Tel: 8837285-7

Zoha Zaman Kabir Rashid and Co. Chartered Accountants

Dhaka Chamber Bhaban

65-66, Motijheel C/A

Room No. 504, Dhaka-1000

Tel: 9564178-9, 9564755

Legal Advisors
Shamim Khaled Ahmed

Bar at Law

2/8 Sir Syed Road

Block-A Mohammadpur, Dhaka

Tel: 9136501

Syed Abdur Rahim


62/1 purana paltan, Dhaka

Tel: 9557856

Khursheeda Jahan


2/1-A, Road No. 2

Shamoly, Dhaka- 1207

Tel: 9112070

Md. Ruhul Amin Bhuiyan



Apartment: A-502/A

6 Kabi Jasimuddin Road

Motijheel, Dhaka

Tel: 8313228

Nitai Roy Chowdhury


657Shaheenbagh, Tejgain, Dhaka

Tel: 9132461

A.K.M. Badrudduza


Law Concept

Room No. 802, 7Th Floor

Baitul Hussain Building

27 Dilkusha C/A, Dhaka-1000

Tel: 9552434

Income Tax Advisor
M/s. L.R Bhuiyan and Associate

6 Bijoy Nagar (2nd Floor)


Tel: 9330736

3.2 Hierarchy of Agrani Bank

3.3 Nature of business

The principal activities of the bank are providing all kinds of commercial banking services to its customers and the principal activities of its subsidiaries are to carry on the remittance business and to undertake and participate in any or all transactions, and operations commonly carried or undertaken by remittance and exchange houses.

3.4 Business Performance

Assets Quality

For improving the quality of our assets, the Bank Management has prioritized financing in trade and commerce by providing working capital. However, some pragmatic steps have been taken to reduce non-performing loans.

Import-Export Business

The Bank’s foreign trade related activities, carried out through 40 AD branches across the country, are well run by our skilled manpower to earn confidence of importers, exporters and Bangladeshi workforce working abroad.

In 2007, the Bank’s export dealing stood at Tk.48.92 billion and import at Tk.113.43 billion.

For smooth conduct of international trade, Agrani Bank Limited has as many as 416 foreign correspondents throughout the world. In addition, the Bank is maintaining 39 NOSTRO Accounts with the world’s leading banks.

Foreign Remittance Business

The Bank continues taka Draft/Electronics fund transfer arrangements with different overseas exchange companies/banks. In 2007, the bank extended such overseas network by adding 3 more exchange companies/bank, totaling 30 as against 27 of 2006 covering Middle East, the Gulf States, South-East Asia and Italy. A policy that has been devised during the period for online distribution of remittances to beneficiaries has greatly encouraged the expatriates to bank more on us.

Our of these 30 exchange companies/banks, we have two subsidiaries of our own through which expatriates are sending home their hard-earned money. The result was obvious. In 2007, the remittance inflows from abroad increased a record high of Tk.42.81 billion from Tk.39.30 billion of 2006. The increase was 8.93 per cent higher than that of last year.

Treasury Operation

As in 2005 and 2006, the fund management division also performed as a major market maker and market leader in 2007.

The good news for the year under review was that the Division achieved a remarkable success in providing a lion share to the Bank’s total income. Through prudent treasury operation, it became the Bank’s top profit centre.


Modern communication system Is essential for carrying out foreign exchange transactions. With a view to ensuring better services to the customers especially to the importers, exporters and remitters, Agrani Bank Limited has, in the meantime, set up 14 SWIFT stations in the near future.

The bank offers to its customers a cluster of instant services in matters of encashment of cheque, information of current balances, statements of accounts erc. Moreover, customers will soon be brought on- line to meet their banking needs through use of their computers and phones.

3.5 Agrani Bank Corporate Governance

Observing the spirit of good governance is a core value for the bank. This makes sense in business terms, and also conforms to the rules, regulations and guidelines issued from time to time by our regulators such as Government, Bangladesh Bank, Registrar of Joint Stock Companies and Firms, Securities and Exchange Commission and the like in matters of capital adequacy, statutory reserves, liquidity, pricing, budgeting, superior client service, product quality, disclosures, credit portfolios, their associated risk factors and their preventions, internal control and compliances etc.

We also carry out our activities strictly in accordance with the bank company Act, 1991 and the companies Act, 1994, in line with the voluntary guidelines of World Bank and international Finance Corporation; we also emphasize environmental and social impacts on the projects we finance.

The board sets the strategy and approves the annual operating plans presented by the management for achievement of the strategic objectives. The board meets regularly and receives information about the overall activities for smooth operation of the bank. As a result, all the Directors have full and timely access to all relevant information

Thus we remain within the regulatory framework to promote greater accountability and transparency in all our policies and practices.

3.6 Highlights on the overall activities of the Bank for the period from May 17, 2007 to December 31, 2007

SL. No Particulars Taka
1 Paid up capital 2,484,200,000
2 Total capital/equity 3,342,709,283
3 Capital surplus/(deficit) (3,257,100,000)
4 Total assets 186,280,385,573
5 Total deposits 135,921,381,916
6 Total loans and advances 118,493,857,283
7 Total contingent liabilities and commitments 67,961,485,412
8 Total classified loan to total loans (%) 26.83%
9 Net classified loan to net loans 8.82%
10 Amount of classified loans 31,788,870,000
11 Provisions kept against classified loans 12,691,779,000
12 Interest suspense against classified loans 9,498,622,458
13 Provision surplus ?(deficit)
14 Credit deposit ratio (%) 87.18%
15 Profit after tax and provision 858,509,283
16 Cost of fund (%) 6.68%
17 Average interest earning assets 142,633,331,506
18 Non-interest earning assets 43,647,054,067
19 Income from investments 949,921,751
20 Return on investment (ROI) 8.67%
21 Return on assets (ROA) 0.92%
22 Earnings per share 34.56

3.7 Agrani Bank Limited

Business Target -2009

No Cercal/Corporate Bran’s Name 01. Investment 02. Loan & Advance 03. Profit
Earn of


Target of 2009 Earn of


Target of 2009 Earn of


Target of 2009
1 Dhaka cercal -1 2487.10 2550.00 36.77 900.00 58.31 75.00
2 Dhaka cercal -2 3246.85 3350.00 1298.82 1350.00 74.81 85.00
3 Chittagong cercal 2655.94 2800.00 697.12 800.00 62.73 80.00
4 Sylhet cercal 996.81 1200.00 99.33 300.00 20.63 35.00
5 Rajshahi cercal 1564.01 1700.00 922.61 950.00 25.50 30.00
6 Khulna cercal 1041.96 1100.00 623.12 650.00 14.89 20.00
7 Borishal cercal 469.62 500.00 242.58 250.00 5.06 6.00
8 Principal Bran’s, Dhaka 645.91 750.00 3855.00 4000.00 201.13 200.00
9 Foreign exchange corporate, Dhaka 145.37 150.00 268.98 280.00 16.45 20.00
10 Amin coat corporate, Dhaka 143.96 230.00 390.78 450.00 15.15 20.00
11 Porana Palton corporate, Dhaka 103.51 100.00 71.66 80.00 4.33 5.00
12 Romna corporate Dhaka 164.99 170.00 553.53 580.00 7.74 10.00
13 B.B. Avenue corporate, Dhaka 347.99 350.00 198.67 270.00 13.38 15.00
14 Laldhagi porba corporate Chittagong 115.65 150.00 229.53 240.00 9.23 10.00
15 Agrabad Corporate Chittagong 103.75 110.00 348.64 350.00 4.03 5.00
16 Commercial Aria corporate Chittagong 63.06 70.00 531.14 550.00 3.64 4.00
17 Sir Eakbal road cor. Khulna 34.17 40.00 193.84 200.00 2.16 3.00
18 Head Office 359.72 380.00 0.00 0.00 92.45 127.00
Total= 14690.37 15700.00 11354.12 12200.00 631.62 750.00
No Cercal/Corporate Bran’s Name 04.Emport 05. Export 06. Foreign Remittance
Earn of


Target of 2009 Earn of


Target of 2009 Earn of


Target of 2009
1 Dhaka cercal -1 192.85 200.00 331.99 350.00 313.52 560.00
2 Dhaka cercal -2 538.44 550.00 690.28 750.00 437.18 800.00
3 Chittagong cercal 273.26 300.00 287.42 350.00 939.16 1650.00
4 Sylhet cercal 30.19 100.00 0.00 0.00 197.95 400.00
5 Rajshahi cercal 263.81 300.00 10.35 15.00 112.92 200.00
6 Khulna cercal 10.48 15.00 289.10 300.00 73.16 150.00
7 Borishal cercal 0.00 0.00 0.00 0.00 69.25 130.00
8 Principal Bran’s, Dhaka 7290.73 7170.00 1193.13 1225.00 43.00 760.00
9 Foreign exchange corporate, Dhaka 337.42 400.00 396.34 450.00 854.00 710.00
10 Amin coat corporate, Dhaka 401.18 500.00 477.39 550.00 59.95 20.00
11 Porana Palton corporate, Dhaka 114.48 100.00 90.08 100.00 72.18 70.00
12 Romna corporate Dhaka 107.39 250.00 204.62 300.00 316.38 20.00
13 B.B. Avenue corporate, Dhaka 242.67 200.00 230.65 250.00 155.64 10.00
14 Laldhagi porba corporate Chittagong 171.05 200.00 52.64 60.00 7.00 10.00
15 Agrabad Corporate Chittagong 340.55 300.00 240.14 300.00 3.29 5.00
16 Commercial Aria corporate Chittagong 526.39 400.00 134.79 150.00 2.01 2.00
17 Sir Eakbal road cor. Khulna 10.85 15.00 324.91 350.00 1.99 3.00
18 Head Office 0.00 0.00 0.00 0.00 0.00 0.00
Total= 10951.74 11000.00 4953.83 5500.00 5268.58 5500.00
No Cercal/Corporate Bran’s Name 07.Classificaton of Quantity Loan Earn
Real earn 2008 Target of 2009 loan earn
Cash Total
1 Dhaka cercal -1 60.06 55.00 30.00 40.00 125.00
2 Dhaka cercal -2 288.99 60.00 60.00 130.00 250.00
3 Chittagong cercal 29.02 25.00 35.00 25.00 85.00
4 Sylhet cercal 7.62 4.00 9.00 2.00 15.00
5 Rajshahi cercal 39.58 48.00 25.00 27.00 100.00
6 Khulna cercal 132.73 30.00 25.00 20.00 75.00
7 Borishal cercal 33.85 12.00 8.00 5.00 25.00
8 Principal Bran’s, Dhaka 259.50 75.00 155.00 80.00 310.00
9 Foreign exchange corporate, Dhaka 12.54 2.00 10.00 8.00 20.00
10 Amin coat corporate, Dhaka 5.25 8.00 22.00 20.00 50.00
11 Porana Palton corporate, Dhaka 26.29 2.00 5.00 3.00 10.00
12 Romna corporate Dhaka 154.73 10.00 70.00 60.00 140.00
13 B.B. Avenue corporate, Dhaka 104.40 2.00 10.00 18.00 30.00
14 Laldhagi porba corporate Chittagong 181.34 4.00 25.00 31.00 60.00
15 Agrabad Corporate Chittagong 14.99 2.00 25.00 33.00 60.00
16 Commercial Aria corporate Chittagong 12.61 8.00 26.00 86.00 120.00
17 Sir Eakbal road cor. Khulna 13.59 3.00 10.00 12.00 25.00
18 Head Office 0.00 0.00 0.00 0.00 0.00
Total = 1377.09 350.00 550.00 600.00 1500.00

3.8 Progress Achieved in 2007

We would first like to throw some light on the unique phenomenon that had taken place in our financial reporting, following Corporatizations , Since Agrani Bank Limited came into being in the middle of the financial year, we had to move away from the traditional way of preparing the final accounts by splitting its performance into two halves- the first half beginning from January 01,2007 to June 30,2007 and the second half from July 01,2007 to December 31,2007 (the former dealing with Agrani Bank’s pre-Corporatisation period and the later with that of Agrani Bank Limited). The task involved and the business carried out during the twin periods within the same accounting year appeared difficult but the Management addressed it successfully.

The Bank’s capital base is not adequate due largely to massive capital shortfall adjustment totaling Tk.3.25 billion. To improve this issue, the Management has devised a 3-year strategic plan, commencing from the year 2008.With the execution of the plan, the Bank would be able to maintain its required level of capital by adjusting its entire capital shortfall at the end of 2010.In 2006 total deposit declined, but in 2007, the situation was recouped and improved a great extent. Deposit was up by 5 per cent from Tk.118.92 billion to Tk.135.92 billon. Loans and advances also increased from Tk.105.87 billon to Tk. 118.49 billion with an increase of 12per cent. Operating profit also increased to Tk.5.26 billion as against Tk.3.58 billion of 2006 with an increase of 47 per cent over the previous year.

The unforeseen market forces at home and abroad impacted heavily on our foreign exchange business. However, our Management tried hard to improve the situation.

3.9 Glimpses of Last Five Year’s Financial

(Taka in Billion)

Agrani Bank Agrani Bank Limited 2007

(01 July to Dec.)

Total (01 Jan.2007 to31 Dec. 2007
2003 2004 2005 2006 2007 (01 Jan .to 30 June
Paid-up Capital 2.48 2.48 2.48 2.48 2.48 2.48 2.48
Reserve Fund 0.34 0.34 0.34 0.29 0.16 0.16
Retained Profit(Loss) (21.72) (20.08) (18.10) 0.70 0.70
Total Equity 2.82 (18.90) (17.26) (15.33) 2.48 3.34 3.34
Total Deposits 117.43 125.39 130.84 128.92 136.06 135.92 135.92
Total Loans and Advances 89.31 95.92 99.40 105.87 104.56 118.49 118.49
Net Loans and Advances 79.67 71.32 75.41 83.58 83.63 95.09 95.09
Investments 31.50 26.85 24.33 22.31 27.46 21.90 21.90
Foreign Business
1. Import 28.97 35.91 51.19 105.92 63.05 50.38 113.43
2. Export 35.75 41.97 41.71 51.71 24.93 23.99 48.92
3. Remittances: 27.43 36.48 34.57 39.30 20.22 22.59 42.81
Total 92.14 114.72 127.47 206.93 108.20 96.96 205.16
Guarantee Business 1.38 1.21 1.18 1.08 1.03 1.05 1.05
Total Income 9.40 9.02 10.60 12.33 6.60 7.08 13.68
Total Expenditure 9.13 9.77 8.46 8.75 4.12 4.30 8.42
Provision 0.26 20.97 3.74 0.29 0.24 1.98 2.22
Interests Suspense 8.50 11.24 9.59 8.92 7.98 9.50 9.50
Fixed Assets 0.48 0.48 0.44 0.41 0.39 2.48 2.48
Total Assets 141.44 151.38 155.53 154.08 160.49 186.28 186.28
Operating Profit 0.26 (0.75) 2.14 3.58 2.48 2.78 5.26
Net Profit(Loss) after provision and tax 0.0014 (21.72) 1.63 1.94 2.30 0.86 0.86
Cost of Fund 7.51% 8.51% 6.95% 6.48% 6.52% 6.68% 6.68%
Number of Branches 872 870 864 866 866 866 866
Number of Employees 12514 12208 11938 117963 11568 11345 11345
Number of Correspondent Bank with NOSTRO A/c 37 41 41 38 38 39 39
Number of Foreign Correspondents 391 399 410 416 416 416 416
Return on Equity 7.78% 29.55% 29.55%
Return on Assets 0.19% (0.50%) 1.05% 1.26% 1.43% 0.92% 0.92%
Net Interest Margin 0.89% (0.45%) 1.73% 2.96% 3.56% 3.69% 3.69%
Average Yield on Loan 9.93% 7.59% 7.49% 9.53% 10.68% 10.35% 10.35%
Loans as percentage of Deposit(A. D. Ratio) 76.06% 76.50% 75.98% 82.12% 76.85% 87.18% 87.18%
Gross classified Loans to Total loans 29.57% 28.07% 28.31% 26.27% 26.94% 26.83% 26.83%
Net Classified loans to Net loans 21.05% 3.25% 5.51% 6.61% 8.23% 8.82% 8.82%

* Total net profit after tax of the former Agrani Bank and the Agrani Bank Limited for the year 2007 stood at Tk. (2.30+0.86) =3.16 billion. However, net profit of Agrani Bank up to 30 June 2007 amounting to Tk.2.30 billion has been squared off against valuation adjustment.

3.10 Financial Results:

Total income

The bank’s total income after corporation was Tk. 7.08 billion while total income earned in 2007 stood at Tk. 13.68 billion as against total income of Tk.12.33 billion in 2006, registering an increase of Tk. 1.35 billion which was 10.95 per cent higher over the last year.

Total Expenditure

After corporation, total expenditure stood at Tk. 4.30 billion whereas during 2007 total expenditure was Tk.8.75 billion. In 2006, total expenditure was Tk. 8.75 billion.

Net Profit

After corporation, the bank’s after-tax income stood at Tk. 0.86 billion. However, during 2007, the bank’s total net profit stood at Tk. 3.16 billion as against Tk.1.94 billion of 2006, showing an increase of 62.88 per cent over the net profit of 2006.

Shareholder’s Equity

As per vendors agreement dated 15 November, 2007 the Agrani Bank Limited has paid Tk. 2.48 billion by issuing shares to the Government. The equity of the bank stood at Tk.3.34 billion on 31 December, 2007 along with reserve and undistributed profit of Tk. 0.86 billion.

It is worth mentioning that the management of the Bank has devised a 3-year broad-based business development plan which will come into effect from the year 2008. on its completion, the bank would be able to maintain more than the required level of capital at the end of 2010.

Appropriation of Profit

Out of the net profit of Tk. 0.86 billion (after tax) earned after corporation, the board of directors proposed to transfer an amount of Tk. 0.16 billion to Statutory Reserve Account and the rest balance amount of Tk. 0.70 billion to Retained Surplus Account. No dividend for the year 2007 has been recommended by the Board.


Today’s business market is very complicated, due to diversified business world. Also importance of total quality management put emphasis on competition market. As a result the essence of HRM is introduced in today’s organization and we know that. HRM sets up the job by virtue of job evaluation; job analysis & job design and also ensures the HR laws and keeps in organization’s mind about government rules and regulations.

The HR department of today’s organizations deals with total systems of the organization. HR officer’s job is to make the HRM system pretty much accurate, in order to ensure that, all other factors related to organization are handled quite effectively.

Therefore, HR officer has to concern about dealing with HRM system as well as performance management due to the importance of cost. Further more, he has to make the image of the company more attractive, nice working condition, good benefit & compensation. Because, these are the part of HRM system.

Some of the constraints have to be follow in the real world while setting up HRM system. We are trying to mention this in the following way:

Ø If the organization needs active employee, than the salary should be high to attract the candidate.

Ø If the organization has a better working condition, good applicant will be attracted.

Ø Compensation and benefit should be standardized.

Ø Technically sound people.

Ø Government rules and regulations should be in consideration.

Ø Motivation is always working for the employees.

Ø Economic condition of the overall economy should be in mind of HR officer.

These are the prime constraint or consideration be kept in mind or HR officer while dealing with HRM practice.

4.2 HRM: Bangladesh Scenario

Bangladesh economy experienced a trend rate of growth of 4.8 percent during 1990s as against 4.4 percent during the previous decade. The rate of growth of per capita GDP has also been impressive during the 1990s. In addition to the higher growth rate of overall GDP, this was facilitated by a sharp fall in the rate of growth of population. During the 1980s, population grew at an annual compound rate of 2.2 percent, and the rate of growth of per capita GDP was recorded at 1.7 percent per annum. In contrast, population growth rate came down to 1.7 percent during the 1990s. Per capita GDP grew at an annual compound rate of 3.3 percent during the 1990s. However, in terms of the absolute level of per capita income, Bangladesh continues to remain at the lower end of the income scale. Per capita income of US $370 compares unfavorably against the low-income country average of US $ 410.The main stream of skilled human resources development and the management of the same is the possible option to impart a favorable GDP rate.

During 1990s, Bangladesh’s total exports in current US$ value grew at an annual compound rate of 14.4 percent. In fact, Bangladesh experienced double digit export growth in most of the years during the 1990s. Imports, on the other hand, grew at an annual compound rate of 10.9 percent during 1990s. The gap between export and import widened from –US $1792 million in 1990/91 to -$2814 million in 1999/00, although the share of export earnings in import payments steadily rose from 31 percent in 1980/81 to 67 percent in 1999/00. The openness of the economy as measured by total external trade as a proportion of GDP went up from around 22 percent in 1990/91 to nearly 30 percent in 1999/00 with the share of export in GDP rising from 7 percent to 12 percent during the same period.

The structure of export has changed significantly over the past two decades. Bangladesh seems to have made the transition from resource-based to process-based exports using its several resources, specially using the proper management of existing human resource. In 1980/81, primary commodity constituted nearly 29 percent of total exports. In 1990/91, this share came down to 17.8 percent and further down to 8.2 percent in 1999/00. There has been a shift from jute-centric to garments-centric export. In 1980-81, raw jute and jute goods together constituted 68 percent of total exports. Between 1980/81 and 1999/00, export of both raw jute and jute products declined in absolute terms and their total share came down to only 6 percent in 1999/00. In contrast, woven and knit garments together accounted for less than 1 percent of exports in 1980/81. Their combined share in exports rose to nearly 76 percent in 1999/00.

A change in the composition of output and employment away from the agricultural sector in the direction of manufacturing and service sectors is often used as a measure of development. In Bangladesh, the share of agriculture in GDP declined from 29.2 percent in 1990-91 to 25.5 percent in 1999-00 – a decline of 3.7 percent. The fall was compensated by an increase in the share of manufacturing and construction. Despite declining share of agriculture in GDP, the increase in food production has been quite satisfactory moving the country from a state of chronic food deficit to near self-sufficiency level.

Manufacturing industry in Bangladesh achieved respectable growth during 1990s. The contribution of manufacturing to GDP increased from 12.9 percent in 1990-91 to 15.4 percent in 1999-00. However, the sector’s current share in GDP appears rather modest for it to spearhead sustained high growth of the economy. Thus, for example, in Thailand the share of manufacturing in overall GDP was 22 percent in 1980 and it rose to 32 percent by 1998. The growth of Bangladesh’s manufacturing sector has also been rather narrowly based with readymade garments accounting for nearly a quarter of the sec