AGRANI BANK

LIMITED
INTERNSHIP REPORT ON LOAN DISBURSEMENT AND RECOVERY SYSTEM
OF AGRANI BANK LIMITED, SHIBGANJ BAZAR BRANCH, CHAPAINAWABGANJ.

PREPARED FOR
MD. SAGOR RANA
LECTURER
DEPT.OF BANKING AND INSURANCE
UNIVERSITY OF RAJSHAHI

PREPARED BY
MD. MUNIR HASAN
ID NO: 17204104
EMBA
DEPT. OF BANKING AND IMSURANCE
UNIVERSITY OF RAJSHAHI
 Letter Of Transmittal

17th December, 2018

To
The Supervisor
N. M. Baki Billah
Lecturer
BRAC Business School
BRAC University

Subject: Submission of internship report

Dear Sir,
This is my pleasure to submit the report on “Loan disbursement and recovery system of Agrani
Bank Ltd.”. As the requirements of BUS-400 course, I have got the opportunity to work in
Agrani Bank. for my internship program which is essential part of my academic program. Last
few months, here I have gained several knowledge and practical experience by doing my
internship. I was assigned supplementary department where I worked on to gather information
about all kind of transaction and documentation.
I have tried my best to gather all kind of information identified with the topic of this paper over
the internship months. There was different troubles confronted while setting up this report. This
Internship gave me the opportunity of practical experience of the activities that takes place at a
commercial bank. I would like to thank you for your supportive suggestions and helping me to
carry on the whole study. I shall be very grateful for any clarification when needed. I will be
highly obliged and thankful if you are kind enough to approve this internship report.

Sincerely yours

Md. Imran Hossain

ID: 17204104
BRAC Business School
 Acknowledgement

Internship is one of the most important partial requirements among all the courses of BBA
program. I would like to thank all the faculty members of BRAC University who helps me to
complete my courses.

It is a synopsis of my study on “loan disbursement and recovery system” at Agrani Bank Limited
as a part of my internship program. At the very beginning, I want to thank the great Almighty
who give me the opportunity to finish this report effectively and smoothly. Without Almighty,
nothing is possible to do.

I would also like to thank my honorable teacher N M Baki Billah sir, faculty of BRAC Business
School, BRAC University, for helping me to finish the report. I will always remain indebted to
him for his valuable suggestions, directions for preparing the report.

was assigned at Faridpur corporate branch of Agrani bank as an intern. The staffs of that branch
was very helpful and co-operative. They helped me to gather various data, guideline and
direction. I am especially grateful to Md. Yousuf Ali (AGM), Manager of Agrani Bank Limited
for his necessary support and help. All of them help to adapt the environment of the bank very
quickly. It would be very difficult for me to learn the practical knowledge without their cordial
assistance

Finally, I like to thanks those people who helped me directly and indirectly to collect the necessary
data and information to complete the internship report

Md. Imran Hossain

ID: 17204104
BRAC Business School
 ACCEPTANCE LETTER

I am pleased to certify that Munir Hasan student of MBA program foe Institute of Banking and
insurance, 4th batch, University of Rajshahi. bearing ID No: 1545445654, Session: July-December,
2017/2018 has successfully completed his internship program under my direct supervision.

He was found punctual, ambitious and hard working. He has a good enthusiasm about learning
and also possesses good knowledge in Finance. His devotion, sincerity and modesty were quite
impressive and praiseworthy.

I wish him every success in life.

---------------------------------------
MD. SAGOR RANA
Lecturer
Dept. of Banking and Insurance
University of Rajshahi
 Executive Summary
The main purpose of the report is to provide a basic ideas of Loan Disbursement and Recovery
system of Agrani Bsnk Limited, Shibganj Bazar Branch, Chapainawabganj. The report also
presents the various terms and conditions of maintaining the different service of Agrani Bank
Limited.

Agrani Bank Limited (ABL) is the second largest commercial bank of Bangladesh for its net
asset or value and it has 901 branches. The mission of Agrani Bank Limited is that it want to be
an effective commercial bank by achieving a stable and constant growth strategy, offering high
valued financial products, delivering excellent customer service. The United Bank Limited and
Union Bank Limited were nationalized after the liberation war and re-launched as Agrani Bank.

This report is prepared mainly on the basis of my three month practical work at Agrani Bank
Limited, Shibganj Bazar Branch Chapainawabganj. This internship period helps me a lot to know
more about the practical scenario and the environment of a financial institution. Loans or credits
is comprised as the most important asset and also the primary source of earning for the banking
institutions. On the other hand, loan/credit is also considered as the major source of risk for the
bank management. The management of bank always tries to make an appropriate balance
between its return and risk involved with the loan portfolio. From this report, I have learned
about how Agrani Bank distributes loan to its client and how they recover it. I have also learned
about their credit policy system which is applying for disbursement and recovery of distributed
loan. The data is used to furnish this report have been collected from both the primary sources
and secondary sources. Among primary and secondary sources, I took most of the information
from the secondary sources. Some information or data is used based on secondary data collected
from different website, official website of Agrani Bank, ABL manual, Desk report sheet of the
related section or department and training sheets also.
1.1. INTRODUCTION:
Generally by the word “Bank” we can easily understand that the financial institution deals
with money. But there are different types of banks like; Central Bank, Commercial Banks,
Savings Banks, Investment Banks, Industrial Banks, Cooperative Banks etc. But when we
use the term “Bank” without any prefix, or qualification it refers to the “Commercial Banks”.
A commercial bank is a type of financial intermediary and a type of bank. Commercial
banking is also known as business banking. It is a bank that provides checking accounts,
savings accounts, and money market accounts and that accepts time deposits. Traditionally,
large commercial banks also underwrite bonds, and make markets in currency, interest
rates, and credit-related securities, but today large commercial banks usually have an
investment bank arm that is involved in the mentioned activities.

Banking sector is expanding its hand in different events every day. At the same time the
banking process is becoming faster, easier and the banking arena becoming wider. As the
demand for the better service increase day by day, they are coming with different
innovative ideas and products. In order to survive in the competitive field of the banking
sector, all banking organization looking for better service opportunities to provide their
fellow clients.

1.2. BACKGROUND OF THE REPORT:

Internship program is a pre-requisite for acquiring MBA degree. Before completion of the
degree, a student must undergo the Internship program. As the classroom discussion alone
cannot make a student perfect in handling the real business situation, therefore, it is an
opportunity for the students to know about the real life situation through this program. And a
report is required to be prepared to summarize the intern’s analysis, findings and achieved
knowledge from this program. This report is a basic academic requirement for the completion of
MBA under the Department of Banking and Insurance, in University of Rajshahi. The program
consists of three phases:
a) The orientation of the Intern with the organization, its function and performance.

b) The project work pertaining to a particular problem or problems matching with the Intern’s
area of specialization and organizational requirement.

c) The report writing to summarize the Intern’s analysis, findings and achievements in the
proceeding of the followings.
1.3. OBJECTIVE OF THE REPORT:
The report has two objectives:
a) General Objective
b) Specific Objective

a) General objective of the report:

The general objective of the report is to complete the internship. As per requirement of BBA
program of BRAC University, a student need to work in a business organization for two months
to acquire practical knowledge about real business operations of a company.

b) Specific objective of the report:

The specific objective of this report is to find and analyze the loan approval and monitoring
process of Agrani Bank Ltd. It will also include gathering an idea about the securities behind the
loan facilities and issuing different bank guarantees. Also includes the SWOT analysis and HR
policies.

1.4. SCOPE OF THE REPORT:

Shibganj Bazar Branch office different division of ABL. is used as sources of information. So
scope of this report is the banking activities and accounting systems. So it is said that scope of
this report is overall activities and accounting Policy and practices of government bank on the
light of ABL.

1.5. METHODOLOGY OF THE STUDY:

a) Report Design:
A descriptive research approach has used to conduct the report. According to Business Research
Methods by Willium G. Zikmund (Seventh Edition), descriptive research is a type of conclusive
research which has its major objective is to provide the description of something-usually market
characteristics or functions.
While conducting smooth and accurately study everyone has to follow some rules and
regulations. In this report I use both primary and secondary data. The details of the work plan
are furnished below:
b) Data Collection Method:
Relevant data for this report will be collected primarily by direct investigations of different
records, papers, documents, statements, operational process and different personnel. The
interviews will administer by formal and informal discussion. No structured questionnaire will
be used.

c) Data Sources:
The information and data for this report will be collected from both the primary and secondary
sources.

Primary Sources:
Face-to-face conversation with the respective officers and stuffs of different section of the
Branch. Relevant field study as provided by the officer concern.

Secondary Sources:
 Annual report of Agrani Bank Limited
 Different manuals and publications of Agrani Bank Limited
 Different manuals and publications of Bangladesh Bank.
 Unpublished data (daily, monthly and yearly statements, ledgers) received from different
section
 Different text books.
 Official web site of ABL

1.6. LIMITATIONS OF THE STUDY:

Like any other study the limitations of this study is not out of questions. But the following
factors seem to me the main points of weakness of this study, despite all out co-ordination from
the bank officials.
 The main constraint of the study is inadequate access to information, which has
hampered the scope of analysis required for the study. I could not use some important
confidential information of ABL because those may be very sensitive for the county and
overall Banking operation of Bangladesh as ABL is a Government Bank. So, I could not
use this confidential information in this report.

 Due to time limitations many of the aspects could not be discussed in the present
report.
  Since a very few the bank personals have accounting based knowledge, many of official
can‟t provide a good briefing to me.

 Another problem is that creates a lot of confusions regarding verification of data in case
of interview from more than one person.

 I carried out such a study for the first time, so inexperience is one of the main
constraints of the study.

2.1. DEFINITION OF BANK:

The Jews in Jerusalem introduced a kind of banking in the form of money lending before the
birth of Christ. The word ‘Bank’ was probably derived from the word ‘bench’ as during
ancient time Jews used to do money -lending business sitting on long benches.
First modern banking was introduced in 1668 in Stockholm as ‘Savings Pis Bank’ which
opened up a new era of banking activities throughout the European Mainland.
In the South Asian region, early banking system was introduced by the Afghan traders
popularly known as Kabuliwallas. Muslim businessmen from Kabul, Afghanistan came to
India and started money lending business in exchange of interest sometime in 1312 A.D.
They were known as ‘Kabuliwallas

Banks have influenced economies and politics for centuries. Historically, the primary
purpose of a bank was to provide loans to trading companies. Banks provided funds to
allow businesses to purchase inventory, and collected those funds back with interest when
the goods were sold. For centuries, the banking industry only dealt with businesses, not
consumers. Banking services have expanded to include services directed at individuals, and
risk in these much smaller transactions is pooled.

The name bank derives from the Italian word banco “desk/bench”, used during the
Renaissance by Florentines bankers, who used to make their transactions above a desk
covered by a green tablecloth. However, there are traces of banking activity even in ancient
times. In fact, the word traces its origins back to the Ancient Roman Empire, where
moneylenders would set up their stalls in the middle of enclosed courtyards called macella
on a long bench called a bancu, from which the words banco and bank are derived. As a
moneychanger, the merchant at the bancu did not so much invest money as merely convert
the foreign currency into the only legal tender in Rome—that of the Imperial Mint.
2.2. DEFINITION OF BANKER:
A banker is responsible for establishing and maintaining positive customer relationships,
planning and delivering effective sales strategies and monitoring the progress of new
and existing financial products. Bankers may work as managers in high street
branches providing operational support on a day-to day basis, or in more specialized
posts in corporate or commercial departments at area, regional or head offices.

2.3. BANKING BUSINESS IN BANGLADESH:

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 Pakistan. 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
regarding 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 renamed the various banks.
Foreign owned banks were permitted to continue doing business in Bangladesh.

2.4. REGULATORY AUTHORITY OF BANKING INDUSTRY IN BANGLADESH

Bangladesh Bank is a typical central bank of a third world country with a medley of tasks on its
agenda. These agenda include not merely issuing notes and controlling supply of money but
also the responsibility to act as the holder of gold and currency reserves, banker to the
government, lender of the last report, supervisor of the banking system, overseer of national
credit policy, promoter of credits to agricultural and other important socio-economic sector and
administrator of exchange control.

2.5. BANKING SERVICE IN BANGLADESH:

With years, banks are also adding services to their customers. The Bangladesh banking industry
is passing through a phase of customers market. The customers have more choices in choosing
their banks. A competition has been established within the banks operating in Bangladesh. With
stiff competition and advancement of technology, the services provided by banks have become
more easy and convenient. The pastdays are witness to an hour wait before withdrawing cash
from accounts or a cheque from north of the country being cleared in one month in the south.
This section of banking deals with the latest discovery in the banking instruments along with the
polished version of their old systems.

2.6. TYPES OF BANK ACCOUNT:

The most common and first service of the banking sector. There are different types of bank
account in Bangladesh banking sector. The bank accounts are as follows:

 Bank Savings Account - Bank Savings Account can be opened for eligible person /
persons and certain organizations / agencies (as advised by Bangladesh Bank from time
to time)
 Bank Current Account - Bank Current Account can be opened by individuals /
partnership firms / Private and Public Limited Companies / Specified Associates /
Societies / Trusts, etc.
 Bank Term Deposits Account - Bank Term Deposits Account can be opened by individuals
/ partnership firms / Private and Public Limited Companies / Specified Associates /
Societies / Trusts, etc.
 Bank Account Online - With the advancement of technology, the major banks in the
public and private sector has facilitated their customer to open bank account online.
Bank account online is registered through a PC with an internet connection.

2.7. PLASTIC MONEY:

Former ANZ Grindlays Bank, now Standard Chartered Grindlays Bank, took a pioneering role in
introducing credit card in Bangladesh. It started acquiring Visa and Mastercard nearly 10 years
back. In the first few years, its operational area was very limited and concentrated only on the
large hotels and restaurants. In 1997 the bank decided to launch full-scale card operation and
very realistically brought a wide range of people under its service system. It is now giving a wide
range of card services through multifarious quality facilities.
Credit cards are financial instruments, which can be used more than once to borrow money or
buy products and services on credit. Basically banks, retail stores and other businesses issue
these.

2.8. FUTURE OF BANKING IN BANGLADESH:

A healthy banking system is essential for any economy striving to achieve good growth and yet
remain stable in an increasingly global business environment. The Bangladeshi banking system
has witnessed a series of reforms in the past, like deregulation of interest rates, dilution of
government stake , and increased participation of private sector banks. It has also undergone
rapid changes, reflecting a number of underlying developments. This trend has created new
competitive threats as well as new opportunities. This paper aims to foresee major future
banking trends, based on these past and current movements in the market.
Given the competitive market, banking will (and to a great extent already has) become a
process of choice and convenience. The future of banking would be in terms of integration. This
is already becoming a reality with new-age banks such as Banking, Mobail Banking etc.
Technology will prove to be the differentiator in the short-term but the dynamic environment
will soon lead to its saturation and what will ultimately be the key to success will be a better
relationship management.

2.9. RISK MANAGEMENT:

The future of banking will undoubtedly rest on risk management dynamics. Only those banks
that have efficient risk management system will survive in the market in the long run. The
effective management of credit risk is a critical component of comprehensive risk management
essential for long-term success of a banking institution.
Although capital serves the purpose of meeting unexpected losses, capital is not a substitute for
inadequate decontrol or risk management systems. Coming years will witness banks striving to
create sound internal control or risk management processes. With the focus on regulation and
risk management in the Basel II framework gaining prominence, the post-Basel II era will belong
to the banks that manage their risks effectively. The banks with proper risk management
systems would not only gain competitive advantage by way of lower regulatory capital charge,
but would also add value to the shareholders and other stakeholders by properly pricing their
services, adequate provisioning and maintaining a robust financial structure.

‘The future belongs to bigger banks alone, as well as to those which have minimized their risks
considerably.’

2.10.DIFFERENCE BETWEEN GOVERNMENT BANK AND PRIVATE BANK:

Private sector banks are owned by the private lenders. The private banks are also managed and
controlled by private promoters and these promoters are free to operate according to the
market forces.
 The interest rates of private banks are generally slight costly as compared to public
sector banks. Banking has been originated in the form of private banking. Generally, the
private banks are looked as a large organization with global operations. A private bank
 may have retail banking facilities for their clients. They are known for better customer
services and investment opportunities. Shareholders of the private banks generally seek
short-term profits as their highest priority. The private banks are known for being well
equipped with all kinds of contemporary tools and techniques.
 Government holds a major share in public sector banks and thus, important decisions
are made by the government. The decisions are generally in the interest of the public.
Their main aim is to carry out the banking activities that cater to all the sections of the
society. On the other hand, a private bank mainly focuses on short term interest. These
banks do not have much interference of the government but at the same time these
banks lack the administrative support of the government. To sustain in the competitive
banking sector, the private sector banks have been using the best and latest software‟s.
 A government bank is formed by taking a bank and its assets into the public ownership.
The national government of the country holds the ownership of nationalized banks. In
nationalized banks the government controls the bank. This could refer to taking control
of the public shares, change in management and new corporate strategy. This is a
common practice in the countries of the west, where it is used as an emergency method
to help the banks during rough times.
 Government is where majority of the stake in the shareholders that more than fifty
percent of the stake is held by them.
 Private Banks majority of the stake owned by private shareholders.
 Fees and services of private banks have made names by providing better service.
However, they charge for extra services they provided by them. On the other hand,
government banks fees and services are less such as on balance maintenance. A lot of
government banks are still picking up in the services.
3.1. INTRODUCTION:
Agrani Bank Limited provides corporate service, SME and retail clients with a wide range of
services such as extensive deposit and loan options that include islami banking, foreign currency
and pension schemes. They are offering personal loan , financial services, business banking ,
commercial and corporate banking , transaction banking, corporate finance , capital market
activities, treasury services and clearing services, through our subsidiaries, they also provide
asset management , venture capital management , SME finance and foreign remittance services.

3.2. ORGANIZATIONAL BACKGROUND:

Agrani Bank Limited (Bengali: অগ্রণণ বববব্যাংক), a state owned leading commercial bank with 953
outlets strategically located in almost all the commercial areas throughout Bangladesh, overseas
Exchange Houses and hundreds of overseas Correspondents, came into being as a Public
Limited Company on May 17, 2007 with a view to take over the business, assets, liabilities,
rights and obligations of the Agrani Bank which emerged as a nationalized commercial bank in
1972 immediately after the emergence of Bangladesh as an independent state. Agrani Bank
Limited started functioning as a going concern basis through a Vendors Agreement signed
between the ministry of finance, Government of the People's Republic of Bangladesh on behalf
of the former Agrani Bank and the Board of Directors of Agrani Bank Limited on November 15,
2007 with retrospective effect from 01 July, 2007.
Agrani Bank Limited is governed by a Board of Directors consisting of 10 members headed by a
Chairman. The Bank is headed by the Managing Director & Chief Executive Officer; Managing
Director is assisted by Deputy Managing Directors and General Managers. The bank has 11
Circle offices, 36 Divisions in head office, 53 zonal offices and 953 branches including 34
corporate , 42 AD (authorized dealer) branches and 5 subsidiary comapanies.

Agrani Bank Limited (ABL) is the first state-owned Commercial Bank in Bangladesh to
introduce Agent Banking. Currently ABL has 200 agent booths who are operating Agent
Banking activities around the rural areas of Bangladesh. In Agrani Bank Limited, Islamic Banking
system is operated under 'Islamic Banking Unit' since February 28, 2010 through 5 Islamic
Banking Windows.
They have also six subsidiaries: a merchant bank, a small and medium sized enterprises
financing company and remittance house in Singapore, Malaysia, Canada and Australia. At
Agrani bank limited, they believe in being a responsible financial services provider and they are
committed to making difference in lives of their stakeholders the lives of our stakeholders and
nation of the country. Just as they are dedicated to helping their customers manage their
finances wisely and grow their businesses, ABL is steadfast in our support of socio – economic
development of Bangladesh.
3.3. MISSION OF AGRANI BANK LTD:
 Provide excellent quality customer services

 Provide expert workers and professionalism

 Maintenance of business ethics
 Become trusted: repository (place where things are stored) of customer’s money and their
financial advisor
 Sound capital base
 ABL mission is to provide Banking services to their valued clientele with utmost proficiency
and sincerity reinforced by an efficient workforce and the latest state of technology.

3.4. VISION OF AGRANI BANK LTD:

By assuring satisfaction to the customers, through a proper training of its most selected group
of employees, it plans to pursue its mission. Also it plans to accomplish its mission through the
constant innovation of its product line and establishing constant network with prospective
corporate client.

3.5. SWOT Analysis of Agrani Bank Limited:

SWOT Analysis is the detailed strategy of an organization‟s exposure and potential in
perspective of its strength, weakness, opportunity and threat. This analysis used the
organization to make their existing line of performance also foresee the future to improve their
performance in comparison to their competitors.
By SWOT Analysis, an organization can also observe their current position. It can also be
considered as an important tool for making changes in the strategic management of the
organization. SWOT is an acronym for the internal strength and weakness of a firm and the
environmental Opportunity and Threat facing that firm. So if we consider Agrani Bank as a
business firm and analyze its strength, weakness, opportunity and threat the scenario will be as
follows:

 Strength:
 Energetic as well as smart team work

 Good Management

 Lending rate is relatively competitive

 Cooperation with each other

  Good banker-customer relationship

 Strong Financial Position

 Huge business area

 Service charges are comparatively reasonable.

 Strong corporate identity

 Young enthusiastic workforce

 Empowered Work force

 Weakness:
 Lack of proper motivation, training and job rotation
 Lack of experienced employees in junior level management
 Lack of own ATM services
 Tendency to leave the bank in quest of flexible environment
 Lack of proficient manpower in some department
 Limited advertising and publicity of bank‟s products and activities
 Absence of strong marketing activities
 Office environment is not good as private bank environment
 High charges of L/C

 Opportunity:
 Growth of sales volume
 Change in political environment
 Launching own ATM card services
 Expansion of banking services into other different services
 Expansion branches of online
 Experienced Managers

Threats:
 Upcoming Banks/Branches

 Different services of FCB‟S (Phone Banking/Home Ban king)

 Similar products are offered by other banks

 Default Loans

 Financial Crisis
  Existing card services of Standard Chartered Bank or other private Bank

 Daily basis interest on deposit offered by HSBC

 Government has been controlling industrial credit

 Recession of global economy

Intensification of competition in the industry

3.6. OBJECTIVE OF AGRANI BANK LTD:

 To facilitate and handle all kinds of commercial banking services to its customer
authorized by Bangladesh Bank
 To handle the export and import trade of Bangladesh
 To take part in international banking etc
The Bank renders commercial banking services to all types of customers. The range of services
offered by the Bank includes- accepting deposit, making loans and advances, discounting bills,
conducting domestic and international money transfers, carrying out foreign

Exchange transactions in addition to international money transfers, and offering other customer
services such as safe keeping, collections and issuing guarantees, acceptances and letters of
credit. Core business of the Bank includes- deposit mobilization and lending activities
comprising short- term, long- term, import and export financing. Financing activities are
extended to different sectors of the economy that could be grouped in to several sectors
including Rural & agriculture, Garments & Textiles, Jute, Cement & Bricks, Tannery, Steel &
Engineering, Food & Beverage, Chemical & Pharmaceuticals, Printing & Packing, Glass &
Ceramics and Miscellaneous.

3.7. Slogan of Agrani Bank Limited:

The Slogan of Agrani Bank Limited is “Committed to serve the nation”
3.8. ORGANIZATION STRUCTURE:
Agrani Bank Ltd will be an effective commercial bank by maintaining a stable growth strategy,
delivering high quality financial products, providing excellent customer service through an
experienced management team and ensuring good corporate governments in every step of
banking network.

 Organizational Structure of Agrani Bank Ltd:

Chairman

Board of Directors

Chief Executive Officer & Managing Directors (CEO & MD)

Deputy Managing Directors (DMD)

General Manager (GM)

Deputy General Manager (DGM)

Assistant General Manager (AGM)

Senior principal officer

Principal Officer
 Senior officer

Officer/O. cash/O. (IT)

3.9. DEPARTMENTS OF AGRANI BANK LTD:

Agrani Bank Ltd. (Shibganj Bazar Branch) is organized with these departments:-
Divisions Activities

 Account opening
 Cheque issue
 Cheque Clearing
General Banking  Payment order/ Demand Draft
 Correspond with head office and other
banks
 Account and cash maintenances
 Remittance

 Evaluation of loan proposal

Foreign Trade/Exchange  Loan management
 Loan monitoring

 Trade Finance/ Cash import

 Providing L/C and other Facilities
Loans and Advances  Back to back L/C for Export
3.10. CREDIT MANAGEMENT:
Agrani Bank Ltd has already adopted the Credit risk management Guidelines issued by the
Bangladesh Bank for improving the risk management culture, establishing minimum standards
for segregation of duties and responsibilities, and promoting the ongoing process for
improvement of the Banking Sector in Bangladesh in the context of globalization. This puts in
place a robust process for proactive management of loan portfolios in order to minimize

Loss and enhance return to shareholders. The Bank has introduced credit policy guidelines for
CRM

3.11. HUMAN RESOURCES DIVISION:

In Agrani Bank Ltd has a separate Human Resources Division (HRD) to manage the employee
policies and practices. In 2007 total human resources strength of ABL was 13,209. Bank follows
a standardized human resources policy. The Bank has defined HR policies including recruitment,
training & development, promotion, leave, transfer, and disciplinary action policy. Usually
internal recruitment procedures are considered to fill up the mid and top management
positions, while entry-level positions are filled with regularly through competitive recruitment
exams. The Bank established fully equipped training centre.

3.12. BUSINESS CHALLENGE:

Agrani Bank wanted to streamline their remittance operations and improve customer service. To
achieve these objectives, they had to address four major challenges:

 Previously, most money transfers were processed manually across Agrani Bank’s remittance
centers due to which it would take up to four days for beneficiaries to receive funds. Agrani
Bank wanted to offer their customers popular same day services such as spot cash within
minutes.
 Agrani Bank wanted to be able to communicate and collaborate information accurately,
rapidly and reliably among their 867 branches. They wanted to ensure that the right
information is delivered to the right branch at the right time using advanced auto-routing
features.
 Some Agrani Bank branches could expect up to 2,000 customers on certain days, making it
very difficult for their staff to serve them. Agrani Bank wanted to empower their staff to help
customers as effectively as possible.
 Agrani Bank wanted to have a sophisticated money transfer management system that could
be easily used by their staff. They wanted the system to be user-friendly so staff could
rapidly learn how to use it, which in turn could save them time and cost.

4.1. GENERAL BANKING SECTION OF ABL (SHIBGANJ BAZAR BRANCH):

I worked as an internee in Agrani Bank Ltd, Shibganj Bazar Branch. I have enjoyed my working
period very much and I tried my level best to gather practical knowledge about banking
activities. Working in Agrani Bank provides me an insight on the customer service department
of Agrani Bank. And I am trying to prepare this report on General Banking according to my
gathered knowledge through working.

4.2. PRODUCTS AND SERVICES OF AGRANI BANK LIMITED:

1) Deposit:
 Taka Account
 Foreign Currency Account
2) Loans and Advances:
 Continuous Loan
 Term Loan
 Rural and Agro Credit
 Small and Medium Enterprise Loan
 Import Finance

 Export Finance

3) Treasury:
 Money Market

 Foreign Exchange Market

4) Letter of Credit:

5) Letter of Guarantee:

6) Other Foreign Exchange Service:

7) Cash Service:
8) Fund Transfer:
9) Value Added Service:
10) Islamic Banking Service:
 Deposit

 Investment

4.3. CASH SECTION:

1. Cash received.
2. Cash payment.

Cash section is the core department for any branch of bank. The main task of cash section is to
receive cash from different types of parties as well as to pay cash too different types of parties.
 Sources of cash received:
 Deposit collection from different account holders.
 Receive from PO, TT, and DD.
 Money receives from share application.
 Receive from PSS holder.
 Receive from FDR holders.
 Receive by selling prize bond.
 Receive from DESA and WASA bill.
 Sources of cash payment:
 Interest payment to different account holders.
 Interest payment PSS and FDR.
  Meet internal disbursement (Office rent, T&T Bills, WASA bills for office etc.)
 Payment against valid cheque.
 Payment for PO, TT, DD.
 Payment for purchasing prize bond.
 Register that is used in cash section:
 Payment registers.
 Cash register.
 Vault register.
 Rough vault register
 Balance statement register
 DESA Bill
 WASA bill.

4.4. SB, CD, SNTD, FDR, SECTION:

 Provide information about account opening and closing.
 Enrolling new Account.
 Posting.
 Signature verification.
 Recording of information of new account holder.
 Providing account statement etc.

Account opening is part of parcel of SB, CD, and SNTD & FDR section. Several types of activities
are done by those sections, such as:
 Counseling about different types of Account and procedure of account opening.
 Providing new cheque book.
 Providing different cheque book.
 Providing different deposit slip.
 Performing the activities of account opening.

4.5. GENERAL PROCEDURE OF BANK ACCOUNT OPENING:

The procedure of opening bank account differs based on types of bank account. But a general
procedure most of the time, use at the time of account opening is given bellow:
Step-1. Determining the types of account that will be opened by customers.

Step-2. Collection of application form.

Step-3. Full fill application form.

Step-4. Introduction.

Step-5. Enclosing necessary document with application.

Step-6. Submitting of application form.

Step-7. Collection, filling-up and submitting of SS card respectively.

Step-8 Collection deposit slip.

Step-9. Paying initial deposit.

3.6. DOCUMENTS COMMON TO ALL FOR OPENING AN ACCOUNT:

A) Account opening form duly filled and signed Proper introduction is a must for opening an
account. Signature of the introducer must be verified before opening of the a/c.
B) Signature card 2 (copies) duly filled and introduced.

C) Photographs (2 copies for each individual) duly attested by the introducer.

D) Nominees 1 copy photograph duly attested.

4.7. ISSUANCE OF CHEQUE BOOK

A) Take requisition slip and verify the signature from the competent authority (Custodian of
Specimen Signature Card).
B) Be caution that the receiver is the right person to take delivery.
C) Write: Title of the account and account number in the Cheque Book Issue Register. Take a
Cheque Book on the basis of the series mentioned in the Cheque Book Issue Register.
D) Record account number on each leaves and on the account slip write title of the account,
issuing date and round seal and get it signed by an authorized signatory.
E) Record cheque series on requisition slip.

F) Deliver cheque book after receiving signature on the register.

G) Requisition slip is sent to the computer department for posting. number of cheques.

H) After posting be kept in the concerned file as per serial.

4.8. CLEARING SECTION:
A Bankers clearing house is an autonomous institution having its rules and regulations for
admission of members and sub-members of the conduct of clearing. Clearing is a mechanism
through which claims and counter claims of the clearing house members (banks) on account of
cheque, drafts, bills, pay orders etc. drawn on each other deposited by customer for collection
and settled daily. In the other words, a clearing house provides a mechanism by which varies
bankers exchange local cheque draft etc. drawn on each other which are receive by them from
their collection for customer. Under the clearing system reciprocal claims of one bank against
others are off set and only the net balance or difference between receipts and payments are
settled by drawing on the account of the debtor bank maintained with the Central Bank.
 Clearing department:
This department is three main jobs-
A. Outward cheque clearing.
B. Inward cheque clearing.
C. Attending house

A. Outward cheque clearing:

Outward cheque are the those cheque which come from another bank to the names of ABL
account holder. To collect money from the ordered person, the cheque of different bank
comes,which is known as outward cheque clearing. Clearing as the account holder wants to
claims the cheque account through its bank. The whole procedure of claiming is done by the
clearing house of Bangladesh bank.
B. Inward cheque clearing:
It is the opposite flow of outward cheque clearing, Here ABL customer draw cheque for the
other banks account holder. That bank will same thing to clearing money ABL with same
procedure. At the time of inward cheque for clearing the initials thing must have to be cheque
like- whether the banks have given the clearing seal, endorsement seal and branch seal.
Sometime, when some valued customer’s drawn cheque comes in ABL’s Sylhet Branch, that
time, if for any reason the Bank employees find out any difficulty in passing their drawn cheque,
then they inform their valued customer about the problem. The difficulty may be like- signing
problem, insufficient fund, etc, reason may occur. So, then their valued customer may try to
sought out the problem about drawn the cheque. It is informed because if any valued is having
insufficient fund for his drawn cheque then open those customer comes to the bank to deposit
the money which they have drawn their party.
As informing the valued customer about their cheque problem , helps to bank to less their
return cheque quantity as much as possible which is important for any bank to improve their
bank image in to the society and also it helps to improve a good relation ,especially with their
valued customer.
C. Attending House:
 Local bills for collection (LBC):
Here, the transaction took place within the local zone. Like in Sylhet City - suppose, a
customer has account in Amborkhana Branch but that customer has presented a cheque in
Shibganj Bazar Branch. For the online facility, the customer can withdraw the money from
Shibganj Bazar Branch but the transaction will be as follows:
IBTA …………………………..Debit

Customer account…………….Credit

As IBTA means Inter Branch transition account that is why from this IBTA the Sylhert Branch
will draw the cheque for that Amborkhana Branch’s customer and will make that customer
account credit by making IBTA debit.

 OBC (Outward Bills for Collection)

If any cheque from other district comes to the Moulvibazar Branch then this OBC take place.
Suppose, from Rupali Bank’s Chittagong Branch a cheque has come to the ABL’s Shibganj
Bazar Branch then in this case OBC will take place.

4.9. SANCHAYPOTRA SECTION:

Agrani Bank Limited works under the guideline of Bangladesh Bank. So Principal Branch has
separate section for issuing and payment of different types of sanchaypotra such- Paribar, 3
month profit basis etc.

4.10. FUND MANAGEMENT SECTION:

This section collects fund from Bangladesh Bank and Sonali Bank Limited on demand of their
other branches and sends issue TT of this.

4.11. FUND MANAGEMENT SECTION:

This section collects fund from Bangladesh Bank and Sonali Bank Limited on demand of their
other branches and sends issue TT of this.

4.12. ACCOUNT SECTION:

General functions performed by the account section:
A) Sorting of vouchers.
B) Audit of daily transactions.

C) Preparation of Extracts (daily) to send H.O.

D) Preparation of Thursday position.

E) Preparation of Daily Statement of Affairs.

F) Preparation of Consolidated Statement of Condition - Profit & Loss (Monthly)

G) Preparation of Statement of SBS - 01 (Monthly to H.O.)

H) Preparation of Statement of SBS - 02 (Quarterly to H.O.) Preparation of Voucher for

depreciation

4.13. AGENCY SERVICES:

Agrani Bank Limited, being a state owned Bank, has both commercial commitment to its clients
and societal 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
transferring money to different benevolent organizations and groups of professionals in far flung
areas through its branches in urban and rural areas all over Bangladesh.

 Here below are a few of such services Agrani Bank Limited provides:
 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

 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

 Bill of Oil-bill of Meghna Petrolium Co. Ltd.

 Sale/encashment of Saving Certificates

 Sale/Purchase of Prize bonds
 Payment of Army/civil pension
 Payment of non-government primary /secondary school/college /Madrasha teachers
benefit (government portion)
 Payment of Government primary school teacher’s salary
 Payment of Honorarium to freedom fighters.
 Payment of stipend for female students of secondary and higher secondary institutions
 Payment of Govt. allowances to Bayaska, Bidava and Dostho Mohila.
 Payment of stipend to primary students
 Payment of stipend to Shishu Kallyan Trust in urban areas.
 Maintain of BADC disbursement account with 200 branches
 Payment of Food Procurement bills.

4.14. FOREIGN REMITTANCE:

Agrani Bank Limited gives top priority in handling remittance from Bangladeshi Wage Earners
working abroad. We have made arrangement to ensure crediting the remitted amount to the
beneficiary's A/C within 72 hours from the time our Back Office in Dhaka receives Credit Advice.
You may open NFCD Account in any of our Authorized Dealer (AD) Branches in Bangladesh. You
may also collect Forms from Bangladesh Missions abroad and send your application to us for
opening NFCD Account. Facilities of NFCD Account:

 Your money will always be in foreign currency of your choice

 You can withdraw and transfer both interest and principal in foreign currency
 You will enjoy many privileges Government has declared for expatriate Bangladeshis
who send their money through banking channels
 You can also convert your foreign currency into Taka

4.15. FUTURE PLANS:

Agrani Bank is actively working to become the foremost remittance provider in all Bangladesh
through effective market penetration. They plan to open more overseas exchange houses in
important locations and forge strategic alliances with major global remittance companies
sending money to Bangladesh.
With 867 branches across the country and now an end-to-end, fast and reliable technology
solutions by Remit ONE, Agrani Bank are certainly placed well in the remittance industry to
achieve their business goals.

4.16. DEFINING SERVICE QUALITY AND SATISFACTION:

The two separate terms “satisfaction” and “quality” are difficult to define in general, and press
writers tend to use those terms interchangeably. Although these two consensuses share
something in common, the fundamental causes and outcomes differ from one another. While
satisfaction is a wide and broad concept in general, service quality has specific attributes of the
service itself. As shown below in Figure 1, service quality is a reflection of the customer’s
perception of reliability, assurance, responsiveness, empathy and tangibles. Whereas customer
satisfaction is more inclusive and perceived according to service quality, product quality, price,
situational factors and personal factors.

Reliability
Service
Responsiveness Quality Situational
Factors
Customer Customer
Assurance Product Loyalty
Quality Satisfactio
Empathy

Tangibles Price Personal

Factors

5.1. INTRODUCTIONS:
Aloan is a debt provided by an entity (organization or individual) to another entity at an interest
rate, and evidenced by a note which specifies, among other things, the principal amount,
interest rate, and date of repayment. A loan entails the reallocation of the subject asset(s) for a
period of time, between the lender and the borrower.
In a loan, the borrower initially receives or borrows an amount of money, called the principal,
from the lender, and is obligated to pay back or repay an equal amount of money to the lender
at a later time.
The loan is generally provided at a cost, referred to as interest on the debt, which provides an
incentive for the lender to engage in the loan. In a legal loan, each of these obligations and
restrictions is enforced by contract, which can also place the borrower under additional
restrictions known as loan covenants. Although this article focuses on monetary loans, in
practice any material object might be lent.
Acting as a provider of loans is one of the principal tasks for financial institutions. For other
institutions, issuing of debt contracts such as bonds is a typical source of funding.

5.2 DEFINITION OF LOAN:

A loan is when a person is provided money that they must repay. In short, a bank loan is a debt
that a person, better known as the borrower, owes to a bank.

The term „loan‟ refers to the amount borrowed by one person from another. The amount is in
the nature of loan and refers to the sum paid to the borrower. Thus, from the view point of
borrower, it is „borrowing‟ and from the view point of bank, it is „lending‟. Loan may be
regarded as „credit‟ granted where the money is disbursed and its recovery is made on a later
date. It is a debt for the borrower. While granting loans, credit is given for a definite purpose
and for a predetermined period. Interest is charged on the loan at agreed rate and intervals of
payment.

5.3. LOAN DEPARTMENT:

Loan Department is one of the important departments of Agrani Bank Limited. One of the
primary functions of commercial banks is to create the claim against individual borrowers or
real sector of the economy through purchasing the primary securities for the purpose of
sanctioning loan. Banks grant loan in the form of different securities. By the primary we mean
the financial claim of holder against the real sector of the economy. In banking the financial
claim of a bank is against issuer i.e. investors, borrowers and deficit units. Bank credit is very
important for bringing economic development in a country without adequate finance there can
be no growth or maintenance of stable economy. Bank lending is important for the economy. It
makes possible the financing of agriculture, commercial and industrial activities of a nation. At
the same time, a bank will, therefore, distribute it’s funds among various sectors in a manner as
to drive sufficient incomes.

5.3. CHARACTERISTICS OF LOAN MANAGEMENT:

5.3.1. Loan Policy:

The board of Directors of a bank has the ultimate responsibility for all of the loans made by
their bank. Because the board delegates to other the task of making loans, it uses a written loan
policy to establish general guidelines and principles for the bank’s lending activities. It is
important to understand that the policies are guidelines and they are not inflexible rules carved
in grants.

Written policies vary widely from bank to bank. The policies of a small bank that lends primarily
to farmers are going to differ from that of large bank specializing in international lending.
Nevertheless, some of the items that are resent written loan policies are presented here.

5.3.2. General Policy:

The general policy outline the bank’s lending objectives in terms of profitability and risk. For
example, the policy may state that the bank is in the business of making sound and profitable
loans. An important part of this goal is that all loans should have a plan of liquidation at the
time they are made. The general policy section may also include statements concerning the
organizational structure for supervising lending activity.

Risk:
By definition, lending funds involves some degree of risk, and we know that risk is related to
returns. The higher the risks, the higher the expected returns. The degree of risk that a bank is
willing to face could be expressed in the following way.
The bank is not an investor and should limit its risk to that which is commensurate with the
return usually available to it as a lender. The yield on a customer’s total relationship should
meet the bank’s earning objectives after allowing for the cost of funds, risk factors, and the cost
of administration.

Loan Supervision:
The Board of Directors has policies regarding the lending authority of individual loans officers
and the approval process for particular types of loans of various sizes. Smaller banks have fewer
layers of management and a simpler approval process.

Geographic Limits:
A bank’s trade area depends on its size. Small banks generally have all local trade area, medium-
sized banks may consider themselves regional banks, and large banks may be national or
international in scope. Thus, one bank policy may state that, “sound local loans are one of the
most satisfactory and profitable means of employing the bank’s funds. Therefore, it is the intent
of the Board that with few exceptions the bank’s loans are limited it the metropolitan area we
serve.” In contrast, another bank’s policy is “to concentrate our lending efforts in the pacific
basin.”
5.3.3. Collateral:
Collateral And Risk:
Sound banking practices require that certain types of loans be backed by collateral. Collateral
refers to an asset pledged against the performance of an obligation. If a borrower defaults on a
loan the bank takes the collateral and sells it. Collateral reduces the bank’s risk when it makes a
loan. However, collateral does not reduce the risk of the loan parse. The risk of the loan is
determined by the borrower’s ability to repay it.
While collateral reduces the bank’s risk, it may increase cost. The higher costs are due to the
need for documentation and the costs of monitoring the collateral. Nevertheless, without
collateral some borrowers could not obtain loans. Therefore, collateral benefits both borrowers
and lender in certain type of loans. In other types of loans collateral is not used.

Characteristics Of Good Collateral:

Almost anything that is lawful may be used as collateral. Nevertheless, some things are better
than others. The five factors listed next determine the suitability of items for use as collateral.
The suitability depends in varying degrees on standardization, durability, identification,
marketability, and stability of value.
 Standardization:
The standardization leaves no ambiguity between the borrower and the lender
as to the nature of the asset that is being sued as collateral.

 Durability:
Durability refers to the ability of the assets to withstand or it can refer to its
useful life. Durability goods make better collateral than non-durables. Stated
otherwise, crushed rocks make better collateral then fresh flowers.
 Identifications:
Certain types of assets are readily identifiable because they have definite
characteristics or serial numbers that cannot be removed. Two examples are a
large office building and an automobile that can be identified by make, model,
and serial number.
 Marketability :
In order for collateral to be of value to the bank, the collateral must be
marketable. That is, you must be able to sell it. Specialized equipment that has
limited use is not as good as collaterals are dump trucks, which have multiple
uses.
  Stability Of Value:
Bankers prefer collateral whose market values are not likely to decline
dramatically during the period of the loan. Common stocks, for example, are not
as desirable as real estate for collateral because stock prices are more variable
than real estate prices.

5.3.4. Types Of Collateral:

The most common types of collateral used in commercial lending are examined here.

Accounts Receivable:
Accounts receivable can be used as collateral in three ways. they are pledging, factoring and
banker’s acceptances.

 Pledging:
A borrower can pledging accounts receivable with his or her bank. In this case
the borrower retains ownership of the receivables, and there is usually no
notification made to the buyer of the goods for which the receivables have been
pledging. Before accepting the receivables, the banker’s evaluate the credit rating
of the firms owing the receivables. Accounts receivable from firm with credit
ratings or those that are overdue may not be acceptable as collateral.
The percentage of face value of the accounts receivable that the banker is wailing
to advance depends on the size, number, and quality of the receivables. Most
bankers prefer to advance funds from receivables from a few well-established
firms with good credit rating.
 Factoring:
Factoring is the