Overview of Agrani Bank Ltd.: Financial Statement Analysis
Historical Background
Agrani Bank, a leading nationalized commercial bank with 891 outlets strategically located in almost all the commercial areas throughout Bangladesh, overseas Exchange Houses and hundreds of overseas Correspondents, came into being on March 26, 1972 with the promulgation of Presidential Order no 26 of 1972. Under the Order Agrani Bank took over assets and liabilities of the erstwhile Habib Bank Ltd. and Commerce Bank Ltd. functioning in the then East Pakistan.
The Bank enjoys the status of a company and functions in terms of the Banking Company Ordinance and regulations of Bangladesh Bank (the Central Bank) and upon such directions as may be changed from time to time by the Government of the People’s Republic of Bangladesh.
The Bank, in 1972, started operation with only 249 branches with its Head Office in Dhaka. There was hardly any liquid asset to run the operation of the Bank smoothly. The Bank resumed its operational activities with an authorized capital of Tk. 5.00crore and paid-up capital of Tk. 1.00crore. Initially the Bank had deposit of Tk. 96.17crore, advances of Tk. 76.56crore, borrowings of Tk. 29.48crore and investment of Tk. 11.00crore. The Bank had commercial relationship with only 41 overseas correspondents in 1972.
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 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.
The Bank’s Vision, Mission and Objectives
Vision:
To become a leading bank of Bangladesh operating at international level of efficiency, quality and customer service.
Mission:
We operate ethically and fairly within the stringent framework set by our regulators. We fuse ideas and lessons from best practice to explore new avenues to become stronger, more efficient and competitive. We apply information and communication technology for the benefit of our customers and employees. We invest to strengthen the future of the Bank.
Principle Objectives:
1. To mobilize national savings
2. To finance industries, micro-enterprises, trades, commerce, agriculture and other productive undertakings
3. To provide any other banking services as required for socio-economic development of the country
The policy direction and overall management of the Bank is vested upon the Board of Directors consisting of six members. The Chairman and Members of the Board are appointed by the Government of the People’s Republic of Bangladesh. Managing Director, the Chief Executive of the Bank, is one of the members of the Board of Directors.
Managing Director is assisted by Deputy Managing Director and General Managers. The Bank has eight Circle Offices, 30 Divisions and Units in Head Office, 54 Zonal Offices, and 872 Branches including 10 Corporate and 30 AD (Authorized Dealer) Branches. The Corporate and AD Branches are authorized to deal in Foreign Exchange Business.
Head Office Divisions are headed by Deputy General Managers and controlled by designated General Managers. The Circle Offices are headed by General Managers and the Zonal Offices by Deputy General Managers or Assistant General Managers, depending on size and importance of the Zones from the commercial point of view. The Corporate Branches and AD Branches are headed by Deputy General Managers or Assistant General Managers.
Board of Directors
| Dr. Khondoker Bazlul Hoque |
| Chairman |
| Mr. Ranjit Kumar Chakraborty |
| Director |
| Mr. Shekhar Dutta |
| Director |
| Mr. Nagibul Islam Dipu |
| Director |
| Engr. Md. Abdus Sabur |
| Director |
| Barrister Zakir Ahammad |
| Director |
| Mr. Shahjada Mohiuddin |
| Director |
| Mr. Abduz Jahir Chowdhury (Sufian) |
| Director |
| Mr. K.M.N. Manjurul Hoque Lablu |
| Director |
| Mr. A.K. Gulam Kibria, FCA |
| Director |
| Mrs. Luna Shamsuddoha |
| Director |
| Mr. Syed Bazlul Karim, BPM |
| Director |
| Mr. Syed Abdul Hamid |
| Managing Director & CEO |
Hierarchy of Agrani Bank Ltd.
Hierarchy of Agrani Bank
Source: Agrani Bank Ltd. Annual report-2009
Deposits
Agrani Bank Limited offers to their clients a variety of Deposit Schemes with personalized services at competitive rates of interest. Any Bangladeshi citizen can open his/her account for any deposit scheme at any of its Branches strategically located throughout Bangladesh.
The Bank with its huge network of 867 branches garners savings from both the rich and the poor in urban as well as rural areas. Even a poor farmer in a remote village, with his meager annual income, feels secure to safekeep his minuscule savings in Agrani Bank Ltd. Why? Because Agrani Bank Limited., as a state-owned bank, has a long heritage of trust and professional commitment
| Schemes | Interest Rate | |
| Savings Account | 4.00% | |
| Short Notice Term Deposit (SNTD) Account | 3.50% | |
| Term Deposit Accounts | ||
Fixed Deposit Receipt (FDR)a) For 3 months & above, but less than 6 months
For any amount7.25%b) For 6 months & above, but less than 1 year
For any amount7.50%c) For 1 year & above
For any amount less than Tk.10.00 crore8.00%d) For 1 year & above
For any amount between Tk.10.00 crore and Tk.50.00 crore8.25%e) For 1 year & above
For any amount greater than Tk.50.00 crore8.50%Agrani Bank Pension SchemeTermMonthly DepositRate of Interest5 yearsTK 100 To TK 5007.00%10 yearsTK 100 To TK 5009.00%Agrani Bank Special Deposit SchemeTermMonthly DepositRate of Interest5 yearsTK 1000 To TK 100008.00%10 yearsTK 1000 To TK 100009.00%
Besides Savings Accounts, Agrani Bank Limited offers personalised services to businessmen who maintain Current Accounts with any Branch. Though a Current Account does not earn any interest, the Account Holder enjoys a lot of benefits. Only Current Account Holders can apply for any loan offered by Agrani Bank Limited, if the Account Holder has excellent track records in banking as well as business arenas. Current Account Holder can draw money from his/her account at any frequency.
Account Holders of Agrani Bank Limited can now avoid the risk of carrying cash by subscribing to our Automated Teller Machine (ATM) Service. ATM Card Holders can draw cash from any ATM location and also enjoy other services like paying a variety of utility bills like those of BTTB, AKTEL and Grameen Phone through ATM service. The service is open round the clock in all the days including holidays.
The ATM cardholder can enquire about the balance of his/her ATM Account from any outlet at any moment. Cash withdrawal of TK. 500, to TK 10,000 can be made from ATMs. Maximum cash withdrawal limit is TK 10,000 at a time and TK 20,000 in a day. Maximum 10 transactions can be made in a day.
Agrani Bank Limited’s ATM Account Holders can enjoy the services from the “shared network arrangement” with other Banks:
Advances
Agrani Bank Limited, as a state owned commercial bank, has to play a pivotal role in translating the government’s development plans in terms of growth in industrial, commercial and agricultural sectors in Bangladesh. Accordingly the Bank has formulated its Credit Policy under the guidelines of Bangladesh Bank-the Central Bank of Bangladesh.
The bank provides credit facilities in following broad areas:
General Credit
Agrani Bank Limited delivers credit facilities to any businessman or trader engaged in any commercial activity having productive purposes that should contribute to economic growth of the country. Loan pricing system is customer friendly and prime customers enjoy rebates in repayment of loans.
3.2.2.2. SME Loan
Considering the volume, role and contribution of SMEs, in the last two decades Agrani Bank Ltd. has been patronizing this sector by extending credit facilities of different types and tenor. Beyond conventional banking the bank has also been participating in several SME programs through its own efforts and its and in collaboration with different national and international agencies like bureau of manpower employment and training, Bangladesh rural development board, Bangladesh small and cottage industries corporation, NGOS, BRAC, international fund for agricultural development etc.
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 Agrani Bank Ltd. significantly.
· To improve the quality of Agrani bank Ltd. portfolio.
SME sectors in which Agrani Bank Ltd. has participated so far:
| SME Financing | |
| Poultry | Animal Feed |
| Dairy Product | Fruit Preservation |
| Hotel & Restaurants | Garments Accessories |
| Agro sector | Leather Products |
| Plastic product | Furniture: wooden & Metal |
| Ink | paint |
| Printing & Packaging | Wire & Cable |
| Aluminum | Cement and Lime Plaster |
| Clinics and Hospitals | Engineering & Scientific Instruments |
3.2.2.3. Industrial Credit
The Bank extends loans to big entrepreneurs and also to small and medium industrial ventures to boost up overall investment in the industrial sector of the country.
The Bank offers financing on easy terms to the following “Thrust Sectors”:
Agro-based industries, Computer Software & IT, Electronics, Artificial flower, Frozen food, Gift item, Export oriented, leather goods, Jute goods, Export oriented non-
traditional agro product, Jewelry and Diamond, cutting & polishing, Silk worm cultivation & silk industry, Stuffed toys, (except RMG), Textile industry, Oil & Gas
Agrani Bank Ltd. provides credits also to the following sectors:
Fisheries, Cold Storage, Rice mill, Fish Processing, Dairy, Poultry, Ice Factory, Food & Allied, Pharmaceuticals, Plastic products, Rubber products, Cement, Ceramics, Paper, Printing, Packaging, Bricks, Hospital & Clinic, Salt Industry, Hotel, Soap & Detergent, Pharmacy, Polyethene, Ballpen, Specialized Textile, Forest & Allied.
Rural Credit
Since nationalization in 1972 and the Bank’s involvement in financing agricultural sector in 1977, Agrani Bank Limited has been reinforcing efforts of the government to meet its strategic objective of increasing production, output and employment through undertaking different agricultural credit programmes / projects. Some of these programmes / projects are outlined below for understanding the role of Agrani Bank Limited in increasing agricultural production & poverty alleviations
1. Crop loan programs:
To help increase food grain and other crop production of the country by way of providing credit to farmers, this program was under taken in 1977. Up to June/2009, an amount of TK.1567.76 core has been disbursed in favor of 27,76,995 borrowers. Recovery rate is 81% (cumulative).
2. Crop Diversification Project:
This Program was undertaken to achieve self-dependency on food production and to fulfill the demand of balanced diet of our people. The project is running with the help of Bangladesh, Canada and Netherlands Government. An amount of TK. 8.92 core has been disbursed among 9116 borrowers up to June, 2009. Cumulative recovery rate is 78%.
3. Shrimp Culture Programs (General):
This credit program was introduced by the Bank in 1980. This particular credit program is designed to increase shrimp production by providing loans to shrimp cultivators in Cox’s Bazar, Khulna, Satkhira, Bagerhat. Disbursement up to June, 2009 is Tk. 117.88 core. among 8487 borrowers. Cumulative recovery rate is 94%.
4. Semi -intensive shrimp culture programme:
For production of more shrimp by using modern technology, semi intensive shrimp culture program was introduced in 1993 with the aim of gaining more foreign currency. In initial phase credit facilities were extended for shrimp production only but subsequently its coverage was extended to the fresh water areas of the country. This loan is treated as industrial credit and all related facilities are enjoyed by the borrowers. Up to June, 2009 an amount of Tk. 7.80 crore has been disbursed among 213 loanees. Cumulative recovery rate is 76%.
5.Fisheries Financing Programme:
This programme was undertaken in 1978 , aiming to provide credit for sweet water fish culture in re-excavated ponds. Upto June, 2007 a total loan of Tk. 8.50 crore has been disbursed among 3,206 borrowers. Cumulative recovery rate is 89%.
6. Credit for Irrigation Equipment:
Since 1977, the Bank is providing credit to the farmers to purchase irrigation equipment (DTW, STW, Rower pump, Treadle pump etc) in order to help increase crop production by utilizing both surface and underground water through irrigation. An amount of Tk. 13.21 crores has been disbursed to 5,376 borrowers up to June, 2009. Cumulative recovery rate is 90%.
7. Agricultural Equipment Project:
This program was undertaken in 1989-90 to increase food production by using modern technology. An individual or a group of farmers can buy tractor/power tiller under this loan program. An amount of Tk. 3.14 crore has been disbursed to 514 borrowers up to June 2009. Cumulative recovery rate is 90%.
8. Credit Scheme for Bananas Cultivation:
To boost up cultivation of Banana in the country, this scheme was introduced in 1980, Upto June, 2009 a total of Tk. 4.80 crore has been disbursed to 2291 borrowers. Cumulative recovery rate is 85%.
9. Credit to Salt Growers:
To increase salt production by providing credit to salt growers of the coastal areas of Chittagong and Cox’s Bazar Districts, this program was undertaken by the Bank in 1977-78 . Up to June, 2009 Tk. 3.38 crore has been disbursed to 6803 borrowers. Cumulative recovery rate is 80%.
10.Daridra Bimochon Karmasuchi (DABIK) :
In collaboration with the Ministry of Youth and Sports, this program was undertaken in 1990 to work in 10 selected Police Stations. Since November, 1995, however, the program is being implemented as the Bank’s own program and the management of the Bank decided to involve the senior executives like DGMs & AGMs to implement this program in their own villages or in areas of their choice under their supervision. Landless rural poor owning land (including homestead) upto 0.50 acre can avail of credit facilities being a member of the 5-member group formed under this project. A wide range of activities are being financed under this program viz. mini poultry, beef-fattening, rural transport, handicrafts, small business, tailoring, fishery, nursery, vegetable production, food processing etc. Credits are extended for a maximum amount of Tk.10,000/= without collateral and the interest rate is 10%. Up to June, 2009 around 31,122 members of the groups formed under the project have availed of the credit facilities amounting to Tk.20.91 crore and recovery rate is 77% (cumulative).
11. Productive Employment Project (PEP):
This project was undertaken by the Bank in 1988 in association with Bangladesh Rural Development Board (BRDB) with financial assistance from Norwegian Agency for Development (NORAD) and Swedish International Development Agency (SIDA). The main objective of the Project was to develop the socio-economic condition of the rural poor of 20 thanas of Faridpur , Rajbari, Madaripur, Gopalgonj and Shariatpur district . NORAD/SIDA provides 33% to 50% and Bank provides 50% to 67% of the credit fund. Maximum limit of credit under the project for individual is Tk.6000 for the first time and Tk. 12,000 for the 2nd time and onwards. Maximum limit of credit under the project for group was Tk. 1,00,000 . No collateral is required to avail of loan under the project. All loans sanctioned under the project was maximum period of one year, for special cases loan period was 18 months. Rate of interest under the project was 16% per annum. A total amount of Tk.195.86 crore has been extended as loan to around 3,37,162 group members up to project period and recovery rate is 99% (cumulative). Upto June, 2009. The project is closed as on June, 2002 .
It may mentioned here that after the completion of the project in June/2000, an agreement was signed on 31-07-2000 between Agrani Bank and BRDB. According to the agreement, from July /2000 the Project was run by BRDB. BRDB is to recover and return the outstanding amount of Bank’s portion .
12. Marginal and Small Farm Systems Crop Intensification Project ( MSFSCIP ) – IFAD Loan no.-194-BD.
This project was undertaken by the Bank along with other NCB’s in 1990 in association with Bangladesh Bank, Rangpur Dinajpur Rural Services (RDRS) GTZ, and IFAD. Credits provided by the Bank are re-financed by Bangladesh Bank out of the credit fund provided by IFAD while GTZ provides the technical assistance to the concerned institutions involved in implementation of the project. RDRS provides field services in formation & promotion of the Self Help Groups (SHGs) comprising of 15-20 beneficiaries. The project is being implemented in 9 Thanas of Kurigram District. The primary objective of the project is to establish a sustainable linkage between the SHGs and the Bank so that the rural poor become bankable. Under the project, credit facilities are being extended to Self Help Groups of Marginal and Small Farmers both for collective and individual activities in the form of Seasonal Agricultural Loan (SAL), Agricultural Investment Loan (AIL), Non-Agricultural Investment Loan (NAIL). Loans are collateral-free with a maximum ceiling of Tk.8,000/= at individual level and Tk.80,500/= at collective level and the rate of interest is 12% . So far a total loan of Tk 7.62 crore has been extended to 1058 groups upto June, 2009 and the recovery rate is 85% (cumulative).
13. Swanirvar Credit Program:
This Program was launched during 1979 in association with Swanirvar Bangladesh under “Dheki Loan Programme” initiate to help distress village women. Its objective is to help initiate income generating activities for attaining self-reliance as well as employment generation in order to improve standards of living of rural poor.It finances cropping, small business, poultry, rice processing and puffing etc. Besides, it helps creating awareness about literacy and family planning, encourages group meeting and group savings and helps in loan repayment.This is a one year credit facility for Taka 5,000/- with 11% interest and being implemented in 92 thanas through 135 branches. Loans are disbursed through groups formed by Swanirvar Bangladesh. 256125 borrowers have availed of this credit facility amounting to Tk. 80.67 crore upto June, 2009 Recovery rate is 82% (cumulative).
14. Financing in small scale cottage industries:
To finance those persons who have already started small scale cottage industries in different areas of the country, Bank has undertaken this program in 1991 with a view to increase their income. The district committee specially formed for this program under the leadership of BSCIC, recommends the genuine loans proposals and the Bank with proper assessment and scrutiny sanctions the loans. The rate of interest under this scheme is 13.75% and the maximum loan repayment period is 3 years. Upto June, 2009 a loan of Tk. 0.85 crore has been disbursed to 597 loanees. Recovery rate is 67% (cumulative).
15. Rural Finance Project ( RFP):
This Project was undertaken in 1979 by the Bank in collaboration with Bangladesh Bank and USAID, this program extends credit facilities to small and landless farmers for various income generating activities in rural areas. Upto June, 2009 an amount of Tk. 38.77 crore has been disbursed to 82857 borrowers. Recovery rate is 88% (cumulative).
16. Shoshya Gudam Rin Prokalpa :
This program was undertaken by the Bank in 1988. The main purpose of the project is to assist farmers in retaining crops stored in godown as pledged goods during peak season when prices of the crops remain lower. Upto June, 2009 an amount of Tk.12.14 crore has been disbursed to 23265 borrowers. The rate of interest under this scheme is 12% and the maximum loan repayment period is 9 months. Recovery rate is 19% (cumulative).
17. Small Enterprises Development Project (SEDP, BGD-041):
This project was undertaken by the Bank in May 1995 in association with NORAD to extend credit facilities in 40 thanas in greater Faridpur and Mymensingh Districts for establishment of micro enterprises. Under the project, 50% of the credit fund is being provided by NORAD and 50% by the Bank. The objective is to improve socio economic conditions of the project areas through creating employment opportunities. A wide range of micro-enterprises are being financed under this project such as rice mill, oil mill, food processing unit, flour mill, nursery, repairing workshop, hatchery, fishery, weaving, handicrafts etc. So far, 44043 entrepreneurs have received credit under this project amounting to Tk. 192.32crore upto June, 2007. Recovery rate is 95% (cumulative).
18. Self Employment Programme for the Unemployed Youth:
Under this programme unemployed youths, trained in different crafts by the Department of Youth Development /BMDC or other organisations are provided with loans to become self employed in their respective field of expertise. Upto June, 2009 an amount of Tk. 3.40crore has been disbursed among 1905 borrowers. Cumulative recovery rate is 95%.
19. Financing NGOs for On-lending to rural poor:
Agrani Bank has pioneered in extending loans to NGOs for on-lending to groups of rural poor for various income generating activities. The NGOs which are in shortage of credit fund may avail of loan facilities at an interest rate of 11%. Upto December, 2009 an amount of Tk.90.00 crore has been disbursed to 7 NGOs. Recovery rate is 81% (cumulative).
20 Netrakona Integrated Agricultural Production and Water Management Project:
This is an Agrani-IFAD co-sponsored project undertaken in 1995 with the objective of increasing the standards of living of the small and marginal farmers and women of Netrakona District through raising their income and preventing their landlessness. Under the perview of the program Bank has extended its services directly to the target group members and through the NGO’s concern. So far an amount of Tk.2.37 crore have been disbursed to selected 6 NGO’s for on lending to the target group members and Taka 4.17 crore has been disbursed to 7503 target group members by Bank directly. Recovery rate is 61 % (cumulative). The Project period has ended on 30-12-2000.
21. Credit for Rural Transport:
This programme was introduced in 1981. Main purpose of the project is to purchase and made different vehicles used as principal mode of transport in rural areas, such as Bullock/ Buffalo carts, Rikshaw-Van, Boat etc. A total loan of Tk.2.47 crore has been disbursed among 2474 lonees under this programme upto June, 2009. The rate of interest under this scheme is 10% and the maximum loan repayment period is 3 years.Recovery rate is 86% (cumulative).
22. Bank loan programme in small scale poultry farms :
With a view to produce ducks & chickens to a great extent in our country, this programme has been introduced in 1990. Mainly loans are disbursed under this programme to those persons who have been trained up in farming centres conducted by livestock development complex. Upto June, 2009 an amount of Tk. 0.65 crore has been disbursed to 382 borrowers. Recovery rate is 80% (cumulative).
23. Agricultural Diversification and Intensification Project (ADIP) :
This project has been undertaken by Agrani bank with the assistance of IFAD. The total project cost is proposed to be US$ 31.20 million out of which US$7.00 million is earmarked for credit. The Remaining US $ 24.20 million will be utilised in Agricultural Development, Rural Infrastructure, Community Development etc. The credit portion is mainly for crop diversification but special emphasis will be given to vegetable production. Gazipur , Tangail, Narsingdi and Kishoregonj ditricts have been selected primarily as project area. Duration of the project is proposed to be 7 years. Loan Agreement has been signed between Government of Bangladesh and IFAD on 27-05-98. Subsidiary Loan Agreement also been signed between Government of Bangladesh (Finance Ministry) and Agrani Bank Limited on 15 -05 -2000.Upto Dec, 2006 an amount Tk. 2.13 crore has already been disbursed to 10 NGOs out of 22 enlisted NGOs. Recovery rate is 96% (cumulative).
24. Kurigram Poverty Alleviation Project (KPAP):
RD-5 project i.e. Productive Employment Project (PEP) was implemented jointely by BRDB and Agrani Bank Limited with the financial assistance from SIDA and NORAD since 1988. The project was implemented in 25 thanas of Faridpur, Rajbari, Madaripur, Gopalgonj Shariatpur, and Kurigram district. SIDA withdrew financial support under the project from July/97. But considering the fact that Kurigram district as one of the poorest area of the country on request of the Government of Bangladesh NORAD agreed to provide financial assistance in Kurigram district as “Kurigram Poverty Alleviation Project (KPAP)” following the PEP Model from July/97. The project is covering 9 thanas of the district. Agrani Bank Limited was covering 5 thanas under the project where Agrani Bank Limited has branches. The credit fund ratio under the project between NORAD and Bank was 50: 50. All the activities of PEP have been transferred to KPAP from July/97. All though the project period ended on June/2000 but the credit activities under the project continued till June, 2002. An amount of Tk. 32.91 crore has already been disbursed among 61150 borrowers up to June, 2002. Recovery rate is 91% (cumulative). It may mention here that the Project has been handed over to BRDB from October /2000. It may mention here that after the completion of the project on September/2000 an agreement was signed on 12-02-2001 between Agrani Bank and BRDB. According to the agreement from October/2000 the Project will be run by BRDB. BRDB will recover and return the outstanding amount of Bank’s portion.
25. Khudra Uddyog Prakolpo
This project is undertaken by the Bank in June’97 as its own program. The main objective of the project is to establish small scale industries, facilitate employment opportunities for the unemployed by engaging them in income generating activities. Groups consisting of five members of same mentality and locality will be considered for loan under this program. Yearly income of the group members should be less than Tk 30.000/=. Field assistants will identify the target group and will provide training. Maximum loan ceiling is Tk. 80,000/=. No collateral is required for loan amounting to Tk. 50,000/=. Equity participation is 10% for each loan. A risk fund is to be formed by deducting / depositing 10% of the loan amount. Loan upto Tk. 25,000 can be sanctioned by branch manager and above Tk. 25,000 can be sanctioned by the zonal head . The rate of interest under this scheme is 8% and the maximum loan repayment period is 3 years. An amount of Tk.14.84 crore has been disbursed upto June, 2009 among 8485 borrowers. Recovery rate is 84% (cumulative).
26. Agro-based Industrial Loan:
Agro-based industrial establishments are playing a pivotal role with a view to recouping the shortfall of protein-related foods as well as promoting the production of milk and baby foods. Hopefully, the setting up of these industrial establishments has at once paved the way for caring huge foreign Exchange to a substantiate extent. The Government has emphasised the need for establishing agro-based industry. Under this sector credit is being disbursed to Fisheries financing, Semi intensive shrimp cultures shrimp – carp hatchery and nursery Dairy, Poultry, such & programes. A total amount of loan Tk 142.67 crore has been disbursed among 523 project upto June, 2009. Cumulative recovery rate is 70%.
27 Special Micro- Credit Program (SMCP):
Agrani Bank has undertaken a Special Micro-Credit Program (SMCP) to finance in small farm and other income generating activities with a view to engaging unemployed youths, distressed women and landless rural poor through extending short and medium term credit . The main purpose of the program is to increase income provide nutrition to the target group and to prevent unemloyment. A wide range of activities are involved under this program viz. Mini dairy , beef fattening, poultry, handicraft , tailoring, fishery, nursery , grocery, small cottage industries etc. Loan upto Tk.50,000/- is collateral free. Disbursement of loan may be made to the borrowers on individual as well as group basis. There are provisions to involve NGOs for group development and loan recovery. For this purpose service charge and prizes are allowed to the NGOs concern. Bank officials also will get prizes for loan disbursement and loan recovery. This program has been started from 2000 – 2001 financial year. So far an amount of Tk. 33.79crore has been disbursed among 27082 lonees upto June, 2007 Cumulative recovery rate is 82%.
28. Goat rearing Program for poverty alleviation.
As per the Instruction of the honourable Prime Minister, Peoples Republic of Bangladesh this Credit program has been taken in 2001-2002 Financial year by this Bank to remove the poverty of poor people, unemployment problem and earned foreign currencies. Under this credit program unemployed youths, those have got training under the Fisheries and Livestock Ministry will get the loan as priority basis. This program has to b e implemented by the 118 branches of 50 Upa-Zillas in 25 districts. The rate of interest of this program is 10%. Under this credit program the loanee who will be able to pay their dues in time, will get 2% rebate facilities on the charged interest. Concern Upa-Zillas Comittee will select borrower and fixed up the loan amount to each borrower. The ceiling of the loan under this credit program is Tk. 30,000/- to 75,000/- ( not over Tk. 1,500/- per goat) The period of loan is 3 years with 1 year grace time and loan should be repaid by the borrowers with four half yearly instalment. Under this Program Agrani Bank has disbursed Tk. 14.41 lakh to the 19250 loanees as on june 2009. Cumulative recovery rate is 45% as per the latest instruction of the Government, this program will be implemented by the branches of this Bank all over the country. In order to rapid implementation of this program, Agrani Bank has published attractive advertisement through the different the National Dailies.
29. Herbal Nursery & Horticulture Program For Poverty Alleviation
This program has been taken in 2001-2002 Financial year by this Bank under the Instruction of Honourable Prime Minister’s Principal Secretary of Bangladesh in order to expansion of Harbal and Unani treatment, Social plantation and poverty alleviation all over the country. This program will be implemented through the branches as per Head office instructions. Under this credit program, the unemployed youths having trainings and experiences of nursery and plantation will get the loan as priority basis. It is a mid-term loan. The highest ceiling limit of Tk. 20,000/- per bigha and Tk. 50,000/- per project for Herbal Nursery. For Herbal Horticulture the highest ceiling of Tk. 20,000/- per acre and Tk. 50,000/- per project and the rate of interest is 8%. The period of loan for Herbal Nursery is 18 months and Herbal Horticulture is 7 years from the date of disbursement respectively. So for an amount of Tk 3.52crore has been disbursed among 3545 borrowers upto June 2009. Cumulative recovery rate is 80%
30. Employment Generation Project for the Rural Poor
The Employment Generation Project for the Rural Poor (EGPRP) came into operation upon signing of a Loan Agreement (IFAD Loan#378-BD) in 1995. The Project was designed to reinforce the efforts of the Government of Bangladesh (GOB) to meet its strategic objectives of increasing output and employment through nationwide development of small enterprises, to which it accords high priority.
The project’s goal is to create a productive micro-enterprise sub-sector providing profitable self-employment for rural people, supported by public and private sector structures and processes which lead to a favorable climate for increasing investment in, and improving management of, micro-enterprises.
The project is to contribute to the goal through four objectives:
a) To establish 9,500 potentially, technically and financially viable micro-enterprises in the hands of rural family entrepreneurs, employing about 70,000 skilled and unskilled laborers
b) To establish within Agrani Bank Limited an efficient and sustainable programme of services which meets the needs of its clients and facilitates the application of local financial resources for investment in micro-enterprises.
c) To establish private sector financial intermediaries and advisory services to develop the market for credit among micro-enterpreneures and to assist them to identity, plan, finance and operate micro-enterprises
d) To develop replicable models of micro-enterprises which can be disseminated throughout Bangladesh.
Loan Delivery System
Through Agrani Bank Limited:
Agrani Bank Ltd., through its designated Branches, directly delivers credits to entrepreneurs on the basis of their financial and personal standing and experience.
Through Advisory Service:
Advisory services of NGO’s or private institutions are to be used for scouting potential micro entrepreneurs, assisting them in preparing business plans and introducing them to Agrani Bank Limited for delivery of loans.
Through Credit Retailers:
Agrani Bank Limited, through authorized retailers like NGO’s, indirectly deliver loans to those entrepreneurs who are graduated from poverty level through participating in Income Generating Activities under Poverty Alleviation Programs and who have good prospects for entrepreneurial success but cannot meet Agrani Bank Limited’s criteria on equity contribution. They are expected to be direct clients of the Credit Retailing Agencies.
Eligible Micro Enterprises
Agro-processing enterprises meant for paddy, flour, edible oil, cotton, fruits, vegetables etc.
Manufacturing enterprises like those related to handicrafts, metal, wood, plastic, garments, food, chemical products etc.
Service Enterprises like those related to restaurants, tailoring, laundering and any other type that contributes to rural employment generation.
Lending Terms & Conditions
Target Group:
The Target Group for ownership/ operation of micro-enterprises consists of four sub-groups:
01. Owners/operators of existing micro-enterprises who have proven managerial and technical skills in self-employment and who wish to expand, upgrade and diversify their business.
02. Persons who have acquired their skills and capacity to operate micro-enterprises after working as apprentices or skilled workers in existing micro-enterprises and who are now eager to establish the same type of micro enterprises themselves.
03. Persons capable of graduating from their existing level of income through their present employments under various Poverty Alleviation Schemes supported by NGOs and are now interested to enhance their income generating activities.
04. The unemployed landless who fall into two categories:
(a) Persons, such as graduates from universities or schools of higher education and capable of starting commercially viable micro-enterprises after undergoing supplementary training.
(b) Those preferring self-employment to waged employment.
Eligibility of applicants
| Age: | 18-45 years |
| Income: | Those who already have Net Annual Income of Taka 10,000 to Taka |
| Experience: | Skilled and experienced in operating micro-enterprises |
| Education: | Minimum Primary Education |
| Background: | Who are not Loan defaulters in any other financial institution |
| Loan Size: | Minimum Taka 20,000 & Maximum Taka 5,00,000 |
| Security: | No collateral security for loan up to Taka 75,000, Collateral security required for loan above Taka 75,000 |
| Interest: | 13% (on diminishing balance) for Working Capital, 11% (on diminishing balance) for Term Loans |
· 9.50% (on diminishing balance) for Credit Retailers
· The Credit retailers can charge their borrowers 3% above the rate at which they borrow form Agrani Bank Limited or a maximum of 14%
Loan Repayment
Repayment terms of all loans are flexible in term of practical cash flow situation. The Credit Retailers, however, may apply their own terms and conditions for realizing loans from the ultimate borrowers.
Loan Supervision:
As loan sanctioning authority, under this Project, is delegated to the Bank Branch and Zonal levels, the concerned Bankers supervise performance of each and every loan case and advise the borrowers on proper management of cash flow and repayment of Loans. The Bankers also assist in establishing linkages with marketing channels and provide technology dissemination services available within the reach of the project.
Progress of the Project
· Now the project is merged with Agrani Bank Limited. This project is now being operated by “SME & Micro Credit Division”.
· 51,312 micro-enterprises have been established through direct lending of Taka 204.40 Crore by designated branches of Agrani Bank Limited
· 65,000 micro-enterprises have been established through NGO’s by amount of 140.00 crore (cummulative)
· A total of Taka 344.40 Crore has been disbursed for financing 1,16,312 micro-enterprises
· Employment opportunity for additional 1,74,468 persons has been created through 1,16,312 micro-enterprises
3.2.2.5. Export Finance
To boost up country’s Export, Agrani Bank Limited has been providing different kinds of assistance and incentive to the exporters. Some of which are:
* Pre-Shipment and Post-Shipment Finance.
* Discount/Concession rate of interest for exports Finance.
* Back-to-Back L/C facility under bonded Warehouse system.
* Sight L/C under Export Development Fund (EDF).
* Interest bearing and non-interest bearing Exporter’s retention Quota A/C.
* Export Incentive Program.
· Financing industries of 100% foreign investment or of Joint Venture at Export Processing Zones
- Obtaining EEF (Equity & Entrepreneurship Fund) from Government through Bangladesh Bank for building up Entrepreneurs’ Equity.* Providing services to the exporters by the Bank’s own logistical supports like SWIFT, Reuters Service, Internet, Fax etc.
* Consultancy and Advisory Services by an expert group of officials.
Special credit programs for IT related export business:
Checklist of requirements:
A. A Firm or Company having valid ERC, necessary infra-structural and technical facilities and sufficient skilled manpower related to computer.
B. Member of BASIS or BCS.
C. Having Computer Literacy or related professional background.
D. Preference to the firm/company having prior experience.
E. Satisfactory performance Certificate/Acceptance Letter from /Counterpart abroad.
F. Valid export Orders are in hand.
Export
The Export business of Agrani Bank Limited during the year 2008 amounted to TK.49538.30 million and the rate of growth was 1.3% over that of the previous year.
| Year | Taka in million |
| 2004 | 41970.60 |
| 2005 | 41709.80 |
| 2006 | 51713.30 |
| 2007 | 48918.70 |
| 2008 | 49538.30 |
Scope of Further Expansion
Software and Data entry, Dry & Dehydrated fish, Processed and Semi Processed food fishes and shrimp, Toys and luggage, Fashion item, Leather goods, Stationery goods, Orchid, Gift item, Bamboo Cane & wooden furniture, Vegetable and Fruit,
Checklist of essential papers/documents for Export
· Trade License from proper authority
· Export Registration Certificate (ERC)
· Value Added Tax (VAT) Registration Certificate
· Income Tax Certificate with Taxpayer’s Identification Number (TIN)
Import Finance
With assistance from about 400 overseas correspondents, Agrani Bank Limited, through 40 Authorized Dealer Branches, has been financing full range import business of a lot of Importers who are Bank’s clients.
Import Items
Wheat, Rice, Suger, Milk Food, Edible Oil, Oil Seeds, Fruits, Spices, Raw Cotton, Cotton Yarn, Textile Fabrics, Pharmaceuticals R.M, Drugs & Medicine, Chemicals, Lime Stone, Coal, Cement, CI/GP/BP Sheet, Capital Machinery, Other Machineries, Other Iron & Steel Product, Motor Vehicle, Parts, Electronic Component, Petrol,Oil & Lubricant(POL), Onion, Fertilizer, Coconut Oil, Scrap Vessels, Marine Diesel Engine, Iron & Steel Scrap.
Facilities Offered:
Opening of L/C at competitive/reasonable margin and at concessional commissions & rates of interests with interest rebate facilities on import finance for the prime customers the import business of Agrani Bank Limited during the year 2008 amounted to TK.109517million.
Bonds
Agrani Bank Shilpa Unnayan Bond
Agrani Bank Shilpa Unnayan Bonds of TK 50,000 TK 100,000 & TK 500,000 denominations were introduced in July 1999 with a view to accumulating a fund of Taka 500 crore to finance industrialization. Purchaser of this Bond can separately withdraw the accumulated interest of six months. The purchaser enjoys a lot of Tax benefits.
| Agrani Bank Shilpa Unnayan Bond for 5 years | 10% |
| Agrani Bank Shilpa Unnayan Bond for 7 years | 11% |
Agrani Bank Shilpa Unnayan Bonds may be purchased from the following designated Branches of Agrani Bank Ltd.:
SERVICE
Agency Services
Agrani Bank Limited, being a state owned Bank, has both commercial commitment to its clients and sociatal commitment to the nation. Besides catering service to its clients at nominal fees/charges the Bank has to provide a plethora of services, free of charges, in respect of transfering money to diffrent benevolent organizations and groups of professionals in far flung areas through its branches in urban and rual areas all over Bangladesh.
Here below are a few of such services Agrani Bank Limited provides:
1. Collection of Utility bills :
§ Telephone bills of T &T Authority without service charges
§ Grameen Phone bills of Grameen Phone Ltd. with service charge & other charges
§ Electric bill of REB without service charges
§ Electric bills of DESA without service charges
§ Electric bill of PDB without service charges
§ Electric bill of DESCO without service charges
§ <href=”#rail.html”>Bills of Railways without service charges
§ Gas bill of Titas Gas, T& D Co. ltd without service charges
§ Gas bill of Bakhrabad Gas Co. ltd without service charges
§ <href=”#petrolium.html”>Bill of Oil-bill of Meghna Petrolium Co. Ltd.
2. Sale/encashment of Saving Certificates
3. Sale/Purchase of Prize bonds
4. Payment of Army/civil pension
5. Payment of non-government primary /secondary school/college /Madrasha teachers benefit (government portion)
6. Payment of Government primary school teachers salary
7. Payment of Honorarium to freedom fighters.
8. Payment of stipend for female students of secondary and higher secondary institutions
9. Payment of Govt. allowances to Bayaska, Bidava and Dostho Mohila.
10. Payment of stipend to primary students
11. Payment of stipend to Shishu Kallyan Trust in urban areas.
12. Maintain of BADC disbursement account with 200 branches
13. Payment of Food Procurement bills.
Locker Service: For safekeeping of customers’ valuables like important documents and goods like jewelries and gold ornaments, Agrani Locker Service is available in most of the Branches in urban areas.
| Nature of Service | Nature of Charges | Rate of Charges |
| Custody of Locker /Safe | Rent | a) Yearly TK.900/= for small size locker |
b) Yearly TK.1200/= for medium size locker
c) Yearly TK.1800/= for big size locker
Evening Banking Service : “Evening Banking”, a unique service of Agrani Bank Limited, only for receiving Cash and Documents beyond transaction hours till 6 o’clock in the evening, is available in about 207 important Branches of Agrani Bank Limited. The service is attractive for those, like shopkeepers, who accumulate cash as sales proceeds in the afternoon when counters of Bank branches usually remain closed.
Inland Remittance
Agrani Bank Limited, as a leading government-owned Bank, has to provide a plethora of services for the benefit of its clients at a low cost compared to other private Banks.
Inland Remittance
Bank offers various remittance services to its valued customer
FOREIGN REMITTANCE
Agrani Exchange House
Hundreds of Bangladeshi expatriates are engaged in a variety of professions in Singapore. Most of them have to remit money to their families as well as their kith and kin in Bangladesh. Only a meager amount of their remittance used to reach Bangladesh through banking channels before our Exchange House started operation in February, 2002. Many illiterate and gullible Bangladeshi guest workers fell prey to ‘Hoondi’ syndicates (unauthorized/unscrupulous intermediaries). ‘Hoondi’ vendors, in the name of remitting money to Bangladesh through non-banking channels under various tricky ploys, fleeced many Bangladeshi brothers and left them bereft of their hard earned savings.
Instructed by the Government of the People’s Republic of Bangladesh Agrani Bank Limited opened the Exchange House to help Bangladeshi professionals and guest workers in Singapore remit their money to any Branch of any Bank in Bangladesh within the shortest possible time. There has been overwhelming response from Bangladeshi expatriates as well as other remitters in Singapore immediately after its opening. Our Exchange House remains open till late in the evening every day.
Besides remitting money any Bangladeshi Wage Earner staying in Singapore can also open NFCD Account and FC Account and purchase Wage Earners’ Bonds through assistance from our Agrani Exchange House.
Thousands of Bangladeshi expatriates are engaged in a variety of professions in Malaysia. Most of them have to remit money to their families as well as their kith and kin in Bangladesh. Only a meager amount of their remittance used to reach Bangladesh through banking channels before our Remittance house started operation in January, 2006.
Instructed by the Government of the People’s Republic of Bangladesh Agrani Bank Limited opened the Agrani Remittance House Sdn. Bhd (As the subsidiary co.) in Malaysia to help Bangladeshi professionals and guest workers to remit their money to any Branch of any Bank in Bangladesh within the shortest possible time. There has been overwhelming response from Bangladeshi expatriates as well as other remitters in
Malaysia immediately after its opening. Our Remittance House remains open till late in the evening every day.
Besides remitting money any Bangladeshi Wage Earner staying in Malaysia can also open NFCD Account, FC Account and purchase Wage Earners’ Development Bonds through assistance from our Agrani Remittance House Sdn. Bhd. Malaysia.
Overseas
Millions of Bangladeshi nationals are employed in a variety of professions in reputed organizations all over the world. Their expertise and professional acumen have earned Bangladesh not only fame and prestige but also hard currency strengthening the backbone of our economy. Bangladeshi nationals living abroad are to remit their hard earned savings through banking channels, but not all of them are aware of friendly banking channels they may send their money through.
Agrani Bank Limited, a leader in Foreign Remittance business, is equipped with all modern tools like SWIFT (Society for World-Wide Inter-Bank Financial Telecommunications), Telex, Internet, fax and other Telecommunication devices to ensure quick and safe transfer of foreign remittance to the beneficiaries anywhere in Bangladesh. The Bank has declared to general public that it would take a maximum period of 72 hours for crediting incoming foreign remittance to the beneficiaries’ accounts with any Bank, however remote the Bank Branch is.
Agrani Bank Limited, having established contractual relationship with about 400 Overseas Correspondents and 30 Exchange Houses all over the world, is ready to cater to the banking needs of foreigners as well as Bangladeshis living abroad as far as incoming remittance is concerned.
To ensure quick remittance inflow into Bangladesh Agrani Bank Limited has also made Special Arrangement with Citi Bank NA. Under the arrangement, Citi Bank N.A. and its correspondents, subsidiaries and affiliates outside Bangladesh will collect remittances and will issue Drafts on designated branches of Agrani Bank Limited. Designated Agrani Bank Limited Branches shall honour /execute payments of all the Drafts instantly within the stipulated time of 72 hours.
With a view to serving a huge number of Bangladeshi guest workers in Singapore, Agrani Bank Limited has taken a bold step to open in Singapore Agrani Exchange House Pte Ltd, a subsidiary company fully owned by Agrani Bank Limited, which started its operation since 8th February, 2002.
Bangladesh government has put emphasis on increasing remittance inflow and is determined to deter money transfer through non-banking channels. Anyone involved in money laundering activity in any form like “Hoondi” business are sure to be awarded heavy punishment, if found guilty under “Money Laundering Prevention Act, 2009” passed recently by Bangladesh Government. We request all concerned, especially our Bangladeshi brothers and sisters, to send their money through banking channels and help Bangladesh develop with their hard earned foreign currency.
Agrani Bank Limited has been maintaining around 903 number of correspondent including Exchange Houses located in different parts of the world to facilitate our international trade and other transactions of trade and remittances globally. The expatiate Bangladesh who are working abroad, can easily take the opportunity to remit their hard earned foreign exchange to their respective beneficiaries utilizing our correspondent services.
Products of Wage Earners
Nonresident Foreign Currency Deposit (NFCD) Account
All nonresident Bangladesh nationals and persons of Bangladesh origin including those having dual nationality and ordinarily residing abroad may maintain interest bearing Time Deposit Accounts named “Nonresident Foreign Currency Deposit (NFCD) Accounts” with any Authorized Dealer (AD) Branch of Agrani Bank.
Bangladesh nationals serving with Embassies/High Commissions of Bangladesh in Foreign countries as also the officers/staff of the Government/Semi Government Departments, nationalized banks and employees of corporate bodies posted abroad or deputed with International and Regional agencies like IMF, World Bank, IDB, and ADB etc. during their assignments abroad may open such accounts with Agrani Bank Limited. Crew members of the Bangladeshi shipping companies are not entitled to open such accounts, but shore staff posted abroad may open such accounts. Accounts may also be opened with funds transferred from existing foreign currency accounts maintain by the wage earners with any AD Branch of Agrani Bank.