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Chapter-1 Introduction
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 History of the Organization Objectives o the Organization Functions of the Organization Role of the Organization in the Eco. Dev. of Bangladesh Organogram of the organization Mission of the Organization Vision of the Organization Agrani Bank Limited at a Glance

CHAPTER 1

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1. INTRODUCTION:
Agrani Bank Limited has been incorporated as a public limited Company on May17,2007 vide joint Stock Companies and Firms certificate of incorporation No. E 66888(4380)/07. The Bank has taken over the business alongside assets, liabilities , rights and obligations of the former Agrani Bank, (emerged as a Nationalised Commercial Bank in 1972, pursuant to the Bangladesh Banks (Nationalisation) Order no. 26 of 1972) on a going concern basis through a vendors agreement signed between the Ministry of Finance, Government of the Peoples Republic of Bangladesh on behave of the former Agrani bank & the Board of Directors of the Bank on behave of Agrani Bank Limited on November15,2007 with retrospective effect from 01 july,2007. The Banks entire shares are held by the Government of the Peoples Republic of Bangladesh and 07 other shareholders nominated by the Government. The Bank has 866 branches as on 31,December, 2007 with no overseas branch. The Bank has however, two wholly-owned Subsidiary companies named Agrani Exchange House(Pvt.)Ltd. in Singapore and Agrani Remittance House SDN, BHD, in Kuala Lumpur, Malaysia. Agrani Bank Limited has one of the most wide spread distribution networks amongst Bangladeshi Banks. In 2007, the Bank further expanded its operational network and two new branches were opened bringing the total number of branches to 866, out of which 458 branches are urban and 408 rural. A countrywide branch modernization plan is now underway and management of all branches will be revised in line with the evolution to a new organization structure. In 2007 Agrani Bank Limited achieved a gross profit of Tk 5.26 billion. The Priorities as per the requirement of my organization Agrani Bank Limited on the topics: Motivation, HR Planning Training & Development, Recruitment, and Performance Appraisal. is focused in the represent assignment. Here some theoretical concepts represented & its use in Agrni Bank Limited is mentioned as per assignment requirements. This Research paper is prepared on the Human Resource Management aspect of Agrani Bank Limited an overview on Finance & Banking, The Role of Managerial issues in Banking Development on recent Perspectives. (An Overview of Agrani Bank Ltd.).

Page 3 of 81 1.1

History of the Organization

Agrani Bank Limited in pursuance of Bangladesh banks (nationalization) order 1972 (P.O. No-26 of 1972) came into being in 1971 taking over the assets and liabilities of the east while Habib bank ltd. And commerce bank ltd. functioning in the then East Pakistan. The bank started operation with 249 branches with its head office in Dhaka. In principle, it changed its motto from class banking to mass banking. As there had been poor banking structure and it failed to build sound banking infrastructure by local entrepreneurs before independence and the newly born independent country was down with enormous economic problem, the new govt. of the country had to build the banking infrastructure, expedite the economic growth and spread the banking service to the doorsteps of the rural poor so that they get institutional financial help and participate in the economic activities the country. Agrani Bank Limited being one of the largest nationalized commercial bank must shoulder the responsibility of expanding its network in rural area. Presently bank has its 408 branches out of total 866 branches located in rural areas implementing as many as 29 programs targeting rural people. At present in the annual report of 2007, 866 branches are existed. It assisted above 29.59 lac rural farmers, small entrepreneurs and destitute women with an amount of TK. 1419.53 crore (2007). Banks in private ownership did never undertake such venture during pre independence period. Besides these non-profits banking activity, Agrani Bank Limited has been performing its 'usual commercial functions. Its authorized capital increased from TK. 5.00 billion in 1972 to TK. 8.00 Billion in 2007, paid up capital increased from TK.1.00 billion to TK. 2.4 billion, deposit increased from TK. 9.62 billion to TK. 135.92 billion, advanced increased from TK.7.66 billion to TK.118.49 billion, investment increased from TK. 1.10 billion to TK 22.19 billion total number of branches increased from 249 to 866 officers increased from 796 to 6791 and staff increased from 1471 to 6012 during the period from 1972 to 2007. On 15 November2007 Agrani Bank Limited transferred to Agrani Bank Limited by a Vendors Agreement with government. All the Assets & Liabilities of Agrani Bank Limited takeover by Agrani Bank Limited . All the shares of Agrani Bank Limited Purchased by the Government & now the status of Agrani Bank Limited turned from Nationalized Commercial Bank to Government Commercial Bank as a Public Limited Company. This reform done by Management Advisory Team(MAT) in pursuit of the longterm goals o reform, modernization and commercialization. in 2004, the Ministry of Finance appointed PricewaterhouseCoopers (PwC).

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1.2 Objectives of the Organization

Agrani Bank Limited is a nationalized commercial bank. In compliance with the very nature of the organization, the objective in mind the bank aims at excelling quality and diversified services. To fulfill its mission Agrani Bank Limited has its main objectives as following: Act as a media of exchange. To contribute to gross domestic product. Maintain a satisfactory deposit mix. To help to grow entrepreneurship. Increase loan portfolio diversification and geographical coverage To help to solve unemployment problem. Provide finance and specialized services to the export. To help to boost economic development. To earn profit.

1.3 Functions of the Organization

To establish, maintain, carryon transact, undertake and conduct different types of banking, financial investment and trust business in Bangladesh and abroad. To carryon any business relating to wage earners scheme as may be allowed by the Bangladesh Bank from time to time including maintaining of foreign currency accounts that any other matter related there to. To contact of negotiate all kinds of loans, aid or assistant, private or public from any other sources, local or foreign and to take all such of steps as may be required to complete such deals. To promote, organize, assist, participate and in forming or organizing any company, bank, syndicate, institution in Bangladesh and abound for the purpose of undertaking financial, investment or trust business. To reconstruct or organize with any company, bank or association in co-operation with any person, company bank or association.

Page 5 of 81 To encourage sponsor and facilitate participation of private capital on financial, industrial or commercial investments shares and securities and in particular by providing finance in the form of long, medium or short term loans or shares participation's by way of subscription to the promoter shares or underwriting support or bridge finance loans or by any other manner. To establish and open offices and branches to carryon all or any of the above business abroad and within the country, provided prior permission in obtained from the Bangladesh Bank. Let we can discuss the details functions of Agrani Bank Limited as stated below:

1.3.1 Foreign Exchange Business Activities:

Foreign exchange business during the year 2006 stood at Tk.9248.93 crore as against Tk.8868.67crore during the year 2007 showing an increase of Tk.380.26 crore i.e. 4% during year. Import transaction increased by Tk.20.85crore which is 8% over the transaction of the previous year. During 2007, the bank achieved Tk.3521.10crore being export business showing an increase of Tk.1. 53crore compared to the preceding year. However, remittances received by the bank during the year shows a considerable increase to the tune of Tk.157 .88crore i.e. 6% of the total of Tk.2674.43crore over the level of the previous year.

1.3.2 Credit recovery activities:

As per management's decision LOAN CERTIFICATION DIVISION started functioning since December 1, 2007. The function of this division comprises operating and monitoring of self classification of loans and advances on yearly basis, monitoring of recovery, progress of classified loans and advances, preparing of credit investigation reports, collecting various information, data etc. for regular as well as onward submission to Bangladesh Bank. The Bangladesh Bank task force, Ministers, Government Agencies as per their requisition and monitoring the implementation of Managing Director's Annual goals and Action plans for recovery and reduction of classified advances up to the predetermined level. Credit Recovery Division (CRD) performs all these functions.

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1.3.3 Audit & Inspection Activities:

The activities of Audit & Inspection Division (AID) are to do audit over the branches and to detect any loss by way of less recovery of interest on advances, excess payment. Interest on time deposits and less recovery of commission (L.C.D.D.T.T.) various services. During the year2007, 448 branches were audited besides; this Division by the same period inspected 13 branches. The auditors detected income loss of Tk.157.51lacs. Out of Tk.157.51lacs Tk.120.01lacs was recovered on the spot by crediting income account and the concerned branches and zonal offices were being closely followed up for recovery of the rest amount.

1.3.4 Computerization Activities:

Agrani Bank Limited is one of the pioneers in the use of computers in Bangladesh. A lot of important jobs of the bank are performed through computers. In Banking sector computer was first used of the then Habib Bank Limited (the parent organization of Agrani Bank Limited) in 1957. The function of Information Technology Division(ITD) is to maintain a database of the entire banking activities of Agrani Bank Limited . This division is well equipped with IBM Midrange Computer and is staffed with highly trained and experienced personnel. The division is now processing different jobs using its IBM AS/400.

1.3.5 Administrative Activities:

The administrative activities of the bank are comprised with Personnel & Human Resources Division (PHRD). The functions of this division is to maintain the number of present manpower in the bank; placing the officials according to their promotion or demotion; recruiting new personnel; providing training programs for them and release personnel according to their age of retirement.

1.3.6 Other Activities:

Planning Research & Statistics Division (PRSD) of the bank accomplishes the work of publishing English Quarterly "Economic News Letter" and Bangla Quarterly "Agrani Darpan" and drafts "Resume

Page 7 of 81 of Financial Sector Activities" of the bank and " Annual Report" of the bank of the year under review. CIB report is also prepared and submitted to Bangladesh Bank through computer diskette by PRSD. This division collects CIB reports from almost 866 branches of the bank under which about 20,000 borrowers are included. This division also collects SBS-l& 3 statements from 866 branches and complies them and sends SBS-2 & 3 through computer diskette. This division maintains a library which is the largest one in scheduled banks, in which the no. of books is approximately 8937 presently.

1.3.7 Special Activities of Agrani Bank Limited

Without the above activities, there are three special activities that were conducted by the bank during the year 2007. Those are as follows: The gross and net amount of loans and advances of the bank by the end of 2007 stood at Tk.83.58 Billion. The bank gave loans to public and private sectors amounting to gross loans and advances at the end of 2007 Tk.995.16crore and Tk.5750.91crore respectively. The advance under small and cottage industries sector by the end of 2007 stood at Tk.373.81crore as against Tk.368.01crore. The bank had a considerable involvement in the jute sector under jute trade and jute industries. Total advances in the jute sector stood at Tk.718.61crore in 2007. The investment in this sector was 11% of the total loan and advances.

a. Trade & Commerce Credit Activities:

Side by side with the industrial sectors, the bank had been financing in trade and commerce to develop export sectors. The bank generally invests short-term loans in these sectors. The bank finances on the major goods items. Like raw jute, fertilizer, food grains, iron & steel, hatchery, sugar, cement, medicine & chemical, frozen food, tea, ready-made garments, leather etc. Agrani Bank Limited helps to keep the price of food grains stable to meet the shortfall of the same providing advances for internal procurement of food grains.

Page 8 of 81 As a nationalized commercial bank, Agrani Bank Limited has been sharing the vital role in all economic activities of the country and these efforts will also be continuing in future.

b. Industrial Development Finance Activities:

Agrani Bank Limited as one of the leading nationalized commercial bank of the country maintained its active role in implementing the Government policy of rapid industrial sector through providing and channeling medium & long-term capital finance as well as shortterm working capital finance to industrial projects. The credit programs under which Agrani Bank Limited had so far financed were namely IDA credit, OPEC credit, Exim Bank credit, ADB credit, Banks own sources of finance, SPL credit program, BSCIC consortium, Credit guarantee scheme, Entrepreneur Development Program, Financing of small scale engineering project and Micro enterprise loan scheme. Up to December 31, 2007 Agrani Bank Limited had sanctioned a total number of 5252 industrial projects with Tk.1052.39crore as term loan. The total outstanding industrial loan was Tk.1043.40crore. Among the sanctioned projects, the numbers of large and medium scale industries were 90 and the number of small and cottage industries were 5162. The ratio of large & medium and small & cottage industries was 67:33.

1.3.8 Rural Credit Activities:

Agricultural/ Rural credit plays an important role in national economy. For this, extension of credit to agricultural/rural sector by the bank had been receiving constant attention of' the bank in line with the credit policy of the Government and cumulative amount of credit extended to this sector under various credit programs stood at Tk.1171.57crore at the end of 2007. During 2007 an amount of Tk.198.40crore had been disbursed under agricultural/rural sector. Credit was also provided to the unemployed educated native youths in order to engage them in productive activities.

Liquidity Position
Agrani Bank Limited is a major participant in the financial/economic market of Bangladesh and enjoys confidence of the depositors and other clients. Joint venture partners and foreign creditors. The Bank, at present, is a net moneylender in money market and is

Page 9 of 81 investing a daily average of Tk 849.00 crore in local currency and also selling excess foreign .currency to other banks equivalent to Tk 8.02 crore on an average per day. The ratio of loans & advances to deposits was increased by 0.44% over the last year & stood at 76.50% at the close of 2007 which was 76.04% at the end of 2006.

1.3.9 Credit Portfolio

General credit
The loans and advances of the Bank as at the close of 2007 was Tk. 118.49 Billion as compared to Tk. 105.87 Billion in the previous year i.e. advances increased by 12.62 Billion with a growth rate of 7.40%,

Tirade and Commerce

The Bank continues to finance Trade and Commerce by investing short-term loans for major items like raw jute, fertilizer, food grains, iron and steel, hatchery, sugar, cement, medicine, chemicals, frozen food, tea, ready-made garments, leather etc: Agrani Bank Limited In the greater national Interest, continues to support different sectors via, jute, tea, leather production. The Bank also helps stabilized the price and supply by providing advances for procurement and preservation of food grains internally on a priority basis as and when needed.

Industrial Credit
Agrani Bank Limited has been playing a pivotal role in supporting the Government policy of rapid industrializations. The Bank continues to provide its specialized services for financing medium and long-term capital finance as well as short-term working capital finance to industrial projects. The total outstanding against industrial project loan as on 31stecember 2007 stands at Tk. 1812.55 crore which is 19% of the Bank's total loan portfolio. Agrani Bank Limited has extended credit facilities to all-important sub-sectors of the economy.

Credit Lines
The Agrani Bank Limited has utilized the following credit lines for onward lending.

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1.3.10 Investment Portfolio

The amount of investment decreased by Tk. 465.47crose and stood at Tk. 2684.77crore in 2007 as against Tk. 3150.24crore in 2006. The principal reason for decrease of investment was due to diversion o fund by encashment of short-term Treasury Bills to call money, balance with other banks and advances to in creases to increase income.

1.3.11 Other Activities of the Bank

Agrani Bank Limited Shilpa Unnayan Bond sale programme:
Agrani Bank Limited in order to create a fund of Tk.500 crore to finance the industrial sector, has introduced Agrani Bank Limited Shilpa Unnayan Bond. The time period of the Bond consists of 5 and 7 years with the face value of Tk. 50,000, Tk. I, 00,000 and Tk. 5, 00,000. The rate of interest for 5-year term bond is 10% while for 7 year it is 11 %. The purchaser's fund so invested is tax-free. But, if the interest earned exceeds Tk. 25,000, a taskbar at the rate of 10% will be levied. The Bank invests sales proceeds of the Bond in developing industries of the country. The Industrial Credit Division is responsible for monitoring sale of the Bond. Up to December 2007, the Bank sold Bonds worth Tk.282.85 crore and invested Tk. 27.11 crore.

Female Secondary School Assistance Project II (FSSAP-II): The Bank has been entrusted with the task of disbursing stipend to 8.50 lac female students at 119 Upazilas under supervision of the world Bank. In 2007, Tk. 28.00 crore has been disbursed.

Female Secondary Stipend Project (FSSP):

In order to speed up literacy in women, Bangladesh Government has initiated this programme to provide stipend to female students. The Bank has been entrusted with the disbursement for Dhaka Division. The Bank, through its 90 branches, disbursed Tk.9.00 crore among 2.87 lac female students of 62 Upazillas under this scheme in 2007.

Female Education Stipend Project(FESP):

Funded by NORAD, this programme has been started to increase literacy in women in 19 upazilas. The Bank disbursed as stipend and tuition fees of Tk. 4.18 Crore to 0.62 lac female students in 2007.

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Primary Education Stipend Project (PESP):

The government has undertaken this programme from its own finance to increase the rate of literacy as well as to prevent the dropout rate at primary level across the country. Agrani Bank Limited , through its 49 branches, disbursed Tk 39.00 crore among 5.14 lac students under 49 upazillas of Sylhet and Barisal divisions.

Higher Secondary Female Stipend Project (HSFSP) Similarly, for the advancement of female education across the country, the government has embarked on this programme. In 2007, Tk. 4.51 crore has been allocated for disbursement.

Bayasko Bhata & Bidhaba Swami Parittakta Dustha Mohila Bhata. In 2007, the Bank has distributed Tk.28.00 crore to 1.88 Lac beneficiaries through its 484 designated branches throughout the country under the programme of the Government.

Payment of Retirement Benefit:

In 2007, an amount of Tk. 34.00 crore has been paid to the Bank by the Government to pay retirement benefits to the retired Govt. employees.

Salary and allowance payment to the non-govt. Teachers.

In 2007, the Government as Salary & Allowances has paid an amount of Tk 400.00 crore to the Bank for the non-govt. teachers.

Food Procurement.
In 2007, an amount of Tk. 384.00 crore has been allocated to the Bank to pay bills against Food Procurement drive undertaken by the government.

Payment of Honorarium and Allowance to Freedom Fighters.

An amount of Tk 4.00 crore has been paid to our Bank for payment of Honorarium and Allowances to Freedom Fighters.

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Uses of Computers in Agrani Bank Limited

Agrani Bank Limited is one of the pioneers in exploring computer technology in the nationalized banking sector. At present, many important jobs of the Bank are carried out through computer. The Information Technology Division of the Bank is well equipped with IBM Midrange computer and is staffed with highly trained, experienced and talented personnel. It may be mentioned here that the relevant software that is required for Bank's jobs has been designed and developed by the Information Technology Division. The Division is now responsible for processing different jobs using IBM AS/400 and PC.

List of On-Line Branches of Agrani Bank Limited under Wide-Area Network(WAN):

SL No 1 2 3 4 5 6 7 8 9

Name of the Branches Principal Branch, Motijheel, Dhaka Ramna Corporate Branch, Dhaka Amin court Corporate Branch, Dhaka Foreign Exchange Corporate Branch, Dhaka Purana Paltan Corporate Branch, Dhaka Jatiya Press Club Branch, Dhaka BAF Branch, Dhaka Cantonment Kamlapur Branch, Dhaka Agrabad Jahan Building Branch, Chittagong

Exhibit:1, On-Line Branches of Agrani Bank Limited. ATM

Agrani Bank Limited introduced ATM Card facility, which is, known as E-cash card. Under this system, card holder can get round-the clock services of two kinds -cash withdrawal and utility bills payment facilities. There are nine members: banks sharing 18 ATMs located at different cities of the country.

List of E-cash ATMs Shared by Agrani Bank Limited:

SL No 1 Bank /Complex Agrani Bank Ltd. Jatiya Press Club Br. Location Dhaka

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2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Agrani Bank Ltd. ICDDRB Branch. Bank Asia Ltd. Motijheel Branch Bank Asia Ltd. Amborkhana Branch Bank Asia Ltd. Rangs Bhaban Branch Islami Bank(BD) Ltd. Kakrail Branch Islami Bank(BD) Ltd. Malibagh Branch Islami Bank(BD) Ltd. Mirpur Branch Islami Bank(BD) Ltd. Taltala Branch National Bank Ltd. Satmasjid Branch National Bank Ltd. Uttara Branch NCC Bank Ltd. Gulshan Avenue Br. NCC Bank Ltd. Nizam Road Br. Dhaka Bank Ltd. Uttara Branch Dhaka Bank Ltd. Banani Branch Social Investment Bank Ltd. Panthapath Rapa Plaza, Dhanmondi IDB Bhaban, Agargaon

Dhaka Dhaka Sylhet Dhaka Dhaka Dhaka Dhaka Sylhet Dhaka Dhaka Dhaka Chittagong Dhaka Dhaka Dhaka Dhaka Dhaka

Exhibit:2, ATM Booth Shared with Agrani Bank Limited.

SWIFT Agrani Bank Limited a member of worldwide SWIFT services, has installed it at its International Division and 14 other big branches. Our Information Technology Division provides all sorts of technical support under SWIFT services.

List of SWIFT in Agrani Bank Limited: SL No.

1 2 3 4 5 6 7 8 9 10 11

Office/Branches
Agrabad C/A Corp. Br. Chittagong Amin Court Corp. Br. Dhaka Foreign Exchange Corp. Br. Dhaka International Division, H.O. Dhaka Court Road. Br. Narayangong Laldighi East Corp. Br. Chittagong Laldighirpar Corp. Br. Sylhet Moulovi Bazar. Br. Dhaka Principal. Br. Dhaka Ramna Corp. Br. Dhaka Shaheb Bazar Br. Rajshahi

SWIFT Code
AGBKBDDHX015 AGBKBDDHX004 AGBKBDDHX006 AGBKBDDH AGBKBDDHX010 AGBKBDDHX017 AGBKBDDHX021 AGBKBDDHX003 AGBKBDDHX001 AGBKBDDHX005 AGBKBDDHX027

Page 14 of 81 12 13 14 15 Sir Iqbal Road Corp. Br. Khulna BB Avenue Corp. Br. Dhaka Purana Paltan Corp. Br. Dhaka WASA Branch. DHaka AGBKBDDHX023 AGBKBDDHX002 AGBKBDDHX034 AGBKBDDHX012

Exhibit:3, SWIFT in Agrani Bank Limited. WEBSITE:

Agrani Bank Limited has a website packed with updated information about the Bank. Information Technology Division maintains the website in conjugation with M/S. Corona IT Ltd. The Website address is: www.agranibank.org.

READY CASH A debit card is introduced in collaboration with American International (Bangladesh) Ltd. Under the system, the cardholder may go shopping at different department stores, hotels, restaurants and shopping malls. Any customer may now pay his/her utility bills like electricity, gas, water, telephone etc. by using this card. 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 customers with nominal charges: Collection of various bills, Remittance, Purchase bill/cheque, bank guarantee. Agrani Bank Limited , as a nationalized 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 five broad areas:

General Credit

Page 15 of 81 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. 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 Limited . 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 Limited . The accounts are in the nature of Term Deposits maturing after one month, three months, six months and one year. The accounts may be maintained in US Dollar, Pound Sterling, Deutsche Mark or Japanese Yen: initially with minimum amount of US$1000 or Pound Sterling 500 or equivalent. Account may be opened against remittances in other convertible currencies after conversion of those into US Dollar, Pound Sterling, Deutsche Mark or Japanese Yen. These Accounts may be maintained as long as the Account Holders desire. Eligible persons are also allowed to open such Accounts within six months of their return to Bangladesh. Eligible Bangladesh nationals may send applications along with a set of specimen signatures of the opener of the account to any AD Branch of Agrani Bank Limited in Bangladesh duly verified by any Bangladesh Mission abroad, or a reputable Bank or any other person known to the AD Branch of Agrani Bank Limited in Bangladesh. The Application Forms may be procured from Bangladesh Missions Abroad and from any AD Branch of Agrani Bank Limited in Bangladesh. No set of specimen signatures will be required to be enclosed with the application form if the application is submitted to an AD with whom the applicant has already been holding a Foreign Currency Account. In such a

Page 16 of 81 case reference to the respective FC account number will serves self-introduction and the account-opening branch will verify the signature with the specimen signature maintained for the FC account. The concerned AD Branch of Agrani Bank Limited will pay interest on deposits into the accounts at the Euro Currency Deposit rates. In case of premature repayments, the interest amount will be forfeited to the depositing AD Branch. The interest on deposits into this account is exempt from the tax payable under Income Tax Act. The Account Holder can freely repatriate the balance and the interest accrued thereon in foreign exchange to the country of his residence or anywhere he chooses and may at his option, convert the balance into local Taka at the prevailing exchange rate. Foreign nationals and companies/ firms registered and/or incorporated abroad, banks, other financial institutions, including institutional investors and 100% foreign owned industrial units in the Export Processing Zones in Bangladesh, are also allowed to open and maintain NFCD accounts with the ADs. The minimum amount of time deposits in such cases should be US$ 25,000 or its equivalent in Pound Sterling, Deutsche Mark or Japanese Yen. Other terms and conditions in respect of these account-holders will be the same as those mentioned above for NFCD accounts of non-resident Bangladesi national FOREIGN CURRENCY (FC) ACCOUNT Account opened and maintained by authorized dealer branches in Foreign Currency without prior approval of Bangladesh Bank is called Foreign Currency Accounts.

Who can open?

Bangladeshi nationals working or earning abroad including self-employed Bangladeshi immigrants proceeding abroad on employment may open F.C. Account even without initial deposit. Foreign nationals residing abroad or in Bangladesh and also foreign firms registered abroad and operating in Bangladesh or abroad. Foreign missions and their expatriate employees WAGE EARNER'S DEVELOPMENT BOND (WEDB) Wage earners living abroad may purchase "Wage Earner's Development Bond" in Bangladesh Taka under the following terms & conditions:

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Denominations:
Taka 1,000 Taka 5,000 Taka 10,000 Taka 25,000 Taka 50,000 Taka 100, 0000

Terms:
For Five years

Interest:
12%. In case of premature encashment interest will be paid at lower rate

Insurance Coverage:
Any purchaser of Wage Earner's Development Bond is entitled to get full life insurance coverage without having to pay premium

Repatriation in Foreign Currency:

Purchaser of WEDB can repatriate the principal amount of the bond in foreign currency

Tax Benefit:
Interest earned from WEDB is exempted from Income Tax Availability of WEDB: Application Forms may be collected from any AD Branch of Agrani Bank Limited or any other Bank in Bangladesh or Agrani Exchange House in Singapore or Bangladesh Missions abroad. But the Form has to be submitted to any AD Branch of Agrani Bank Limited in Bangladesh for purchasing WEDB NONRESIDENT INVESTOR'S TAKA (NIT) ACCOUNT With a view to helping Wage Earners invest in shares and securities in Bangladesh "Nonresident Investor's Taka (NIT) Account" has been introduced. A Wage Earner can open a NIT Account with any AD Branch of Agrani Bank Limited under the following conditions: Account Holder can repatriate the available balance amount of the account in foreign currency back to any country of his/her choice Dividend and capital gains deposited in the account are exempted from Income Tax The account can be operated by nominee (s).

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Foreign Remittance
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 19 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 honor /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 have 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. About 14 million Singapore Dollar, which is the accumulated amount of hundreds of small remittances of Bangladeshi guest workers in Singapore, has

Page 19 of 81 been remitted through Agrani Exchange House to Bangladesh within a period of only seven months since its inception. 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, 2002" 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.

Authorized Dealer (AD) Branches of Agrani Bank

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 beneficiary utilizing our correspondent services. The following are the major correspondent Bank located in deferent parts of the world.

Agency Services
Agrani Bank Limited , being a nationalized 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 real areas all over Bangladesh. Here below are a few of such services Agrani Bank Limited provides:

Page 20 of 81 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

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 teachers salary Maintain of BADC disbursement account with 200 branches Payment of stipend to Shishu Kallyan Trust in urban areas. 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 Food Procurement bills. Le/encashment of Saving Certificate 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. EVENING BANKING SERVICES: "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 200

Page 21 of 81 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. 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 866 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 safe keep his minuscule savings in Agrani Bank Limited Why? Because Agrani Bank Limited , as a state-owned bank, has a long heritage of trust and professional commitment. Besides Savings Accounts Agrani Bank Limited offers personalized 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. ATM CARD 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 utility bill 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. 1,000, TK 2,000, TK 3000 or TK 5000 can be made from ATMs. Maximum cash withdrawal limit is TK 5,000 at a time and TK 20,000 in a day. Maximum 10 transactions can be made in a day.

On Line Procedure

Page 22 of 81

Exhibit:4, On-line Procedure in Agrani Bank Limited.

Page 23 of 81 ONLINE BANKING Agrani Bank Limited is geared with the latest gadgets of Information Technology to serve their clients. To provide efficient and quick service to its clients we have integrated seven important Branches in Dhaka city into a 'Composite Network' through Micro Wave Radio Link. Based on Agrani Bank's own software "Agrani Solution, designed and developed by IT personnel of the Bank, all the banking operations of both Front Office and Back Office of all the seven Branches are made interlinked. We can now centrally monitor online the banking operations of the integrated Branches from any point in Head Office or the Branches. Very shortly we are introducing quiet a number of branches under the same network of online banking. No matter in which of the seven networked Branches the account is opened the Account Holder

Can deposit cash or check in any of the Branches Can draw cash of any amount from any of the Branches Can present "Special Instruction" in any of the Branches Can issue "Stop Payment" instruction in any of the Branches Can deposit money to any Investment Account in any of the Branches Can deposit Loan Installments in any of the Branches Can collect Statement of Account from any of the Branches Can collect Statement of Loan Account from any of the Branches Can deposit money for ATM accounts in any of the Branches

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 variety 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. 1,000, TK 2,000, TK 3000 or TK 5000 can be made from ATMs. Maximum cash withdrawal limit is TK 5,000 at a time and TK 20,000 in a day. Maximum 10 transactions can be made in a day.

Page 24 of 81

Deposit Schemes
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 891 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 safekeeping his minuscule savings in Agrani Bank Limited Why? Because Agrani Bank Limited as a state-owned bank, has a long heritage of trust and professional commitment. Besides Savings Accounts Agrani Bank Limited offers personalized 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.

Advances
Agrani Bank Limited , as a nationalized 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 five 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.

Industrial Credit

Page 25 of 81 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":

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 programmers / projects.

Some of these programmers / projects are outlined below for understanding the role of Agrani Bank Limited in increasing agricultural production & poverty alleviations. 1. Crop loan programmed:
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/2008, an amount of TK.768.95 core has been disbursed in favor of 21, 65,447 borrowers. Recovery rate is 73% (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. 8.30 core has been disbursed among 8771 borrowers up to June, 2008. Cumulative recovery rate is 63%.

3. Shrimp Culture Programmed (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, and Bagerhat. Disbursement up to June, 2008 is Tk. 73.43 core. Among 5000 borrowers. Cumulative recovery rate is 78%.

Page 26 of 81

4. Semi -intensive shrimp culture programmed:

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, 2008 an amount of Tk. 7.80 crore has been disbursed among 213 loaners. Cumulative recovery rate is 38%.

5. Fisheries Financing Programmed:

This programmed was undertaken in 1978, aiming to provide credit for sweet water fish culture in re-excavated ponds. Upto June, 2008 a total loan of Tk. 3.20 crore has been disbursed among 2,434 borrowers. Cumulative recovery rate is 82%.

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. 13.14 crore has been disbursed to 5,373 borrowers up to June, 2008. Cumulative recovery rate is 68%.

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. 2.69 crore has been disbursed to 462 borrowers up to June 2008. Cumulative recovery rate is 64%.

8. Credit Scheme for Bananas Cultivation:

To boost up cultivation of Banana in the country, this scheme was introduced in 1980; Upto June, 2008 a total of Tk. 1.01 crore has been disbursed to 893 borrowers. Cumulative recovery rate is 82%.

Page 27 of 81

9. Credit to Salt Growers:

To increase salt production by providing credit to salt growers of the coastal areas of Chittagong and Cox's Bazaar Districts, this program was undertaken by the Bank in 197778. Up to June, 2008 Tk. 1.75crore has been disbursed to 5664 borrowers. Cumulative recovery rate is 67%.

10. Swanirvar Credit Programme:

This Programmed 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 72 thanas through 122 branches. Loans are disbursed through groups formed by Swanirvar Bangladesh. 163771 borrowers have availed of this credit facility amounting to Tk. 37.25 crore upto June, 2002 Recovery rate is 69% (cumulative).

11. 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, 2008 an amount of Tk. 26.08 crore has been disbursed to 70520 borrowers. Recovery rate is 84% (cumulative).

12. 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 go down as pledged goods during peak season when prices of the crops remain lower. Upto June, 2008 an amount of Tk.3.33 crore has been disbursed to 14442 borrowers. The rate of interest under this scheme is 12% and the maximum loan repayment period is 9 months. Recovery rate is 100% (cumulative).

13. 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

Page 28 of 81 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, 26505 entrepreneurs have received credit under this project amounting to Tk. 91.98 crore upto June, 2008. Recovery rate is 92% (cumulative).

14. 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 organizations are provided with loans to become self employed in their respective field of expertise. Upto June, 2002 an amount of Tk. 2.17 crore has been disbursed among 1362 borrowers. Cumulative recovery rate is 64%.

15. Financing NGOs for On-lending to rural poor:

Agrani Bank Limited 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, 2001 an amount of Tk.3.39 crore has been disbursed to 4 NGOs. Recovery rate is 87% (cumulative).

16. 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, Rickshaw-Van, Boat etc. A total loan of Tk.2.08 crore has been disbursed among 2322 lonees under this programme upto June, 2008. The rate of interest under this scheme is 11% and the maximum loan repayment period is 3 years. Recovery rate is 75% (cumulative). 17. 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, 2008 an amount of Tk. 0.27 crore has been disbursed to 126 borrowers. Recovery rate is 70% (cumulative).

18. Khudra Uddyog Prakolpo :

Page 29 of 81 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 13% and the maximum loan repayment period is 3 years. An amount of Tk.3.00 crore has been disbursed upto June, 2002 among 2263 borrowers. Recovery rate is 92% (cumulative).

19. 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 emphasized 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 & programs. A total amount of loan Tk 27.89 crore has been disbursed upto June, 2008. Cumulative recovery rate is 39%.

20. Special Micro- Credit Programme (SMCP):

Agrani Bank Limited has undertaken a Special Micro-Credit Programme (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 unemployment. 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 unto 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

Page 30 of 81 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 years. So far an amount of Tk. 4.13 crore has been disbursed among 2909 lonees upto June, 2008 Cumulative recovery rate is 93%.

21. Goat rearing Programme for poverty alleviation.

As per the Instruction of the Honorable Prime Minister, Peoples Republic of Bangladesh this Credit programme 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 programme unemployed youths, those have got training under the Fisheries and Livestock Ministry will get the loan as priority basis. This programme has to b e implemented by the 118 branches of 50 Upa-Zillas in 25 districts. The rate of interest of this programme is 10%. Under this credit programme the leaned who will be able to pay their dues in time, will get 2% rebate facilities on the charged interest. Concern Upa-Zillas Committee will select borrower and fixed up the loan amount to each borrower. The ceiling of the loan under this credit programme 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 installment. Under this Programme Agrani Bank Limited his disbursed Tk. 9.00 (Nine) lac to the 34 loanees as on 31/07/02. As per the latest instruction of the Government, this programme will be implemented by the branches of this Bank all over the country.

22. Herbal Nursery & Horticulture Programme for Poverty Alleviation. This programme has been taken in 2001-2002 Financial year by this Bank under the Instruction of Honorable Prime Minister's Principal Secretary of Bangladesh in order to expansion of Herbal and Unani treatment, Social plantation and poverty alleviation all over the country. This programme will be implemented through the branches as per Head office instructions. Under this credit programmed, 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 of Tk. 20,000/- per bight and Tk. 50,000/- per project for Herbal Nursery. For Herbal Horticulture the highest ceiling of Tk. 20,000/- per acre and Tk.

Page 31 of 81 50,000/- per project and the rate of interest is 10%. The period of loan for Herbal Nursery is 18 months and Herbal Horticulture is 7 years from the date of disbursement respectively.

23. 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 killed and unskilled laborers b) To establish within Agrani Bank Limited an efficient and sustainable programmed of services which meet steeds 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 microentrepreneurs 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 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 SupervisionAs 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

Page 32 of 81 marketing channels and provide technology dissemination services available within the reach of the project

Progress of the Project

According to Loan Agreement a separate Department named " Micro Enterprise Development Unit" is established 7,675 micro-enterprises have been established through direct lending of Taka 64.06 Crore by designated branches of Agrani Bank Limited 14,300 micro-enterprises have been established through direct lending of Taka 31.70 Crore by NGO Credit Retails A total of Taka 95.75 Crore has been disbursed for financing 21,975 micro-enterprises Employment opportunity for additional 32,239 persons has been created through 21,975 micro-enterprises

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. * Ck-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:

Page 33 of 81

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 2007 amounted to TK.53.99 Billion and the rate of growth was 21% over that of the previous year.

Scope of Further Expansion: Out/Concession rate of interest for exports Finance: Import Finance
With assistance from about 400 overseas correspondents, Agrani Bank Limited through 38 Authorized Dealer Branches, has been financing full range import business of a lot of Importers who are Bank's clients.

Facilities Offered:
Opening of L/C at competitive/reasonable margin and at confessional 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 2001 amounted.

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1.4 Role of the Organization in the Eco. Dev. of Bangladesh

Immediately after the War of Liberation, the economy of the new-born country was in a shambles and stood frangible. the situation drove the banking sector, like other sectors in the economy, into multifarious problems. The infrastructural inadequacy, coupled with the lack of genuine entrepreneurial outlook, stood as a major obstacle in the way of taking the bank in activities towards progress. Under the circumstances, the Government took initiatives to rebuild infrastructure, and expand services to the door-steps of the people. Later, against the backdrop of transition to market economy, the banking sector need multifaceted reforms. Agrani Bank Limited in the pioneer of reform in Banking sector and playing an important role in the economic development in Bangladesh by its nation-wide Banking network.

1.4 Role of Agrani Bank Limited in the economic development in Bangladesh.

Agrani Bank Limited is contributing to our national economy since it is being nationalized. Of them following are mentionable. As the economy of Bangladesh heavily depends on agriculture therefore it provides loans to the poor farmers under reasonable terms and conditions. It provides industrial credit to the entrepreneurs and thereby plays an important role for alleviating poverty, in other sense and enhancing economic development. It provides credit in export and import sector for expanding international trade. It provides commercial credit to the small, medium and big businessmen and thereby bringing dynamism in the country. For poverty alleviation in the rural area, it provides credit to educated and employed youth. So that they are engaged with productive activities and thereby helping them in order to become self-dependent. For the growth of national savings, it issues savings certificates, wage earner bonds; besides this it executes purchase and sale of prize bond. And finally the bank tries to provide an overall up to-date banking system to its customers which effects positively on the economic system.

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1.5 Organogram Of The Organization :

Agrani Bank Limited is Governed by the Ministry of Finance& Regulated by Bangladesh Bank. It has a Board of Directors with 7(seven) Members headed by Chairman of the Board. There the policy maker. The Bank is Administrated by MD-CEO & DMDs. The Management of the Bank is headed by 12 General Managers by GMs Secretariats. 30 Divisions of Head Office in Headed by Deputy General Managers. 52 Zonal offices are Headed by Zonal Heads & Branch diagram in the next page. Chairman Managers act under the Zonal Heads. The organizational structure of Agrani Bank Limited is here by showed by the under mentioned

Board of Directors

MD-CEO

DMD-1 GMs

DMD-2

Divisional Heads

Zonal Heads

Branch Managers

Exhibit-5: The Organogram of Agrani Bank Limited .

Page 36 of 81 1.6

Mission of the Organization

We will operate ethically and fairly within the governance framework set by the regulators. We will incorporate lessons from best practice to develop a more efficient and productive ways to operate. We will harness the advances of information technology for the benefit of customers, employees and stakeholders. We will invest to strengthen the future of the Bank.

1.7 Vision of the Organization:

To be a leading Bank of Bangladesh operating at international levels of efficiency, quality and customer service. To modernize and operate as a leading organization of Bangladesh. We want to be the decades of growth & glory in the Banking sector. 1.8 Agrani Bank Limited at a Glance: Statement of Affairs Authorized Capital Paid-up Capital Reserve fund Total Deposit Total Loans & Advances Net Loans & Advances Investment Forex Business: i) Imports ii)Exports iii)Remittances Total: Guarantee Business Total Income Total Expenditure Provision Fixed Assets Total Assets Operating Profit Net Profit/Loss Cost of fund Number of Branches Number of Employee 35.91 41.97 36.84 114.72 1.21 9.02 9.77 20.97 0.48 151.38 (-)0.75 *(-)21.72 8.51% 870 12208 51.19 41.71 34.57 127.47 1.18 10.60 8.46 3.74 0.44 155.53 2.14 1.63 6.95% 864 11938 115.92 51.71 39.30 206.93 1.08 12.33 8.75 0.29 0.41 154.08 3.58 1.94 6.84% 866 11793 125.38 53.99 41.29 220.66 1.22 15.73 10.47 0.37 0.43 156.22 5.26 2.89 6.55% 866 11345 2004 8.00 2.48 0.34 125.39 95.92 71.32 26.85 2005 8.00 2.48 0.34 130.84 99.40 75.41 24.33 Taka in Billion 2006 8.00 2.48 0.29 128.92 105.87 83.58 22.31 2007 8.00 2.48 0.57 135.92 118.49 85.75 22.19

Page 37 of 81 Number of Correspondence Return on Assets Net Interest on Mergin Average yield Loan Loans to Deposit Gross Classified Loan Net Classified Loan Foreign 399 (-) 0.50% (-)0.45% 7.59% 76.50% 28.07% 3.25% 410 1.38% 1.73% 7.94% 75.98% 28.31% 5.51% 416 2.32% 2.96% 9.53% 82.12% 26.27% 6.61% 416 2.37% 3.04% 10.06% 87.17% 26.02% 6.36%

Exhibit : 6 Agrani Bank Limited at a glance.

Page 38 of 81

Research Methodology
2.1 Rationale of the Study 2.2 Objectives of the Study 2.3 Data Collection 2.3.1 Secondary Source 2.3.2 Primary source 2.4 Tabulation of Data 2.5 Analysis Techniques & Report Writing 2.6 Limitations of the study

CHAPTER-2

Page 39 of 81

2. RESEARCH METHODOLOGY:
The Methodology of the study is represented by the under mentioned diagram:

Selecting a topic

Accumulating the secondary data

Ascending the data

Data arranging & Sort analysis

Analyzing the data

Assignment building

Submitting the final report

Exhibt: 7, Methodology of the study.

2.1 Rational of the Study:

Page 40 of 81 This assignment report has been prepared complete the requirement for getting MBA degree. As a part of my study it is mandatory to get involved with my organization Agrani Bank Limited for finding the priorities of Managerial issues in Banking Development as the course requirement of " Introduction to Finance, to acquire the theoretical & practical knowledge and experience.

2.2 Objectives of the Study:

The main objective of this study is to assess overall performance of Agrani Bank Limited for finding the priorities of Recruitment, Motivation, Training & Development, Compensation Administration, and performance appraisal including how efficiently the bank is maintaining thereof. In addition, the study seeks to achieve the following objectives: To present an overview of Agrani Bank Limited on its finance. To appraise the performance of Agrani Bank Limited . To identify the problems facing the Agrani Bank Limited . To suggest remedial measures for the development of Agrani Bank

Limited .

2.3 Data Collection: 2.3.1) Secondary Source: The secondary sources of my information are as follows:
a. Annual report of Agrani Bank b. Desk report of the related department i.e. IDFD c. Other manual information d. Different reference books of the library e. Some of my course elements as related to this report.

2.3.2) Primary source: The primary sources of my information are as follows

a. Direct observation b. Expert opinion c. Queries to the concerning persons.

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2.4) Tabulation of Data:

Some data used directly & some used after adding additional information. Some used random basis and some in sampling method. However an overall sequence of the above mentioned topics collected from Banks yearly report books, other booklets, journal. & the website of Agrani Bank Limited Methodology of Agrani Bank Limited Training Institute(ABTI), its training materials & lecture modules is used for tabulation of data.

2.5) Analysis Techniques & Report Writing:

To prepare the assignment here theoritical Concepts is used first & hence forth the practical requirements & priorities of Recruitment, Motivation, Training & Development, Compensation Administration, and performance appraisal in Agrani Bank Limited reported. The Collected were tabulated on the computer and the final analysis was performed on statistical software two types of analysis were primarily carried out: is

I. Factors Analysis:
To check if the scale items included in the organizational commitment questionnaire constituted in a singal variable in the specific context of Agrani Bank Limited.

II. Co-relations and regression analysis:

To find out if and to what extent the power bases explained employeess organizational commitment.

Page 42 of 81

III. Factor Analysis with Varimax Rotation: Dependent Variable; Organizational Commitment is shown by the under mentioned Exhibit: Scale items Factor organizational

Commitment I would take any type of job assignment in order 0.786

to keep working for this organization

I Find that my values and organizations values are similar

This organization really inspires that very best in me in the way of job performance I Talk up this organization to my friends as a great organization to work for I am willing to put in a great deal of effort what I normally expected in order to help this organization to be successful The amount of job security I have is very satisfactory

0.782 0.756 0.753 0.690

0.577

Eigen value=3.176,% of variance =52.94 Exhibits: 8, Factors Analysis with Varimax Rotation

2.6) Limitations of the study:

To prepare the assignment on Priorities on the HR topics as per the requirement of my organization Agrani Bank Limited . Like HR Planning, Recruitment, Training & Development, Compensation Management, Motivation and Performance Appraisal is a difficult task. Yet I try my level best from my own position in Agrni Bank Limited (Asst. General Manager, Bhola Zone, Bhola the isolated Island of Bangladesh), the findings & recommendations may near to correct but not the decision of Higher Authority. The main limitations are the obstragle the five power bases which influences the HRM process in Agrani Bank Limited are as follows

Page 43 of 81 1. Coercive Power is based on the perceptions subordinates that a superior has the ability to punish them if they fail to conform to his or her influence attempt. 2. Reward power is based on the perception of subordinates that a superior can reward them for desired behavior. 3. Legitimate power is based on the belief of subordinates that a superior has the right to prescribe and control their behavior. 4. Expert power is based on subordinates belief that a superior has job experience and special knowledge or expertise in a given area. 5. Referent power is based on subordinates desires to identify with a superior because of their admiration or personal liking of the superior.

Page 44 of 81

Findings and Analysis

3.1 Motivation 3.2 Pay structure and benefits 3.3 Performance Appraisal 3.4 Welfare facilities 3.5 Disciplinary and appellate activities 3.6 Business Performance 3.7 Loans and Advances 3.8 Financial Result

CHAPTER-3

Page 45 of 81

3. FINDINGS & ANALYSIS: 3.1 MOTIVATION Motivation

Motivation is a psychological characteristic that contributes to a persons degree of commitment. It includes the facts that cause, channel and sustain human behaviour in a particular committed direction. However, the term motivation has been defined by authors in amy ways. Some of the definitions are as follows: (i) Motivation may be defined as the state of an individuals perspective which represents the strength of his or her propensity to exert effort toward some particular behaviour Gibson (ii) (iii) Motivation refers to expenditure of effort toward a goal- Dubrin Motivation is a cyclical process affecting the inner needs or drives that energize, channel, and maintain behaviour Steers and Lyman. For our purpose, we shall define motivation as the need or drive within an individual that urges him or her towards Goal-oriented action.

The Motivation Process

The motivation process may be represented by the under mentioned diagram which begins with inner drives and needs that motivate the individual to work towards begins with inner drives and needs that motivate the individual to work towards certain goals, which the individual has chosen in the belief that those goals will satisfy the inner drives and needs. After attaining these goals, the individual consciously or unconsciously judges whether the effort has been worthwhile. As long as the individual perceives the effort as rewarding, the habit of making the effort is reinforced and the individual can be persuaded to continue or repeat that kind of effort. Employee motivation is of crucial concern to management, mainly because of the role that employee motivation plays in performance. Basically, performance is determined by (i) ability, (ii) environment and (iii) motivation. If any of these three factors is missing or deficient, effective performance is impossible. A manager may have the most highly

Page 46 of 81 qualified employees under him and provide them with the best possible environment, but effective performance will not result unless the subordinates are motivated to perform.

Inner Drives, Needs or Motives

Behavior or Action

Goals

Reinforcement

Satisfaction

Exhibt-9: Motivation process of Agrani Bank Limited .

The techniques to motivation used in Agrani Bank Limited :

(1) Management by Objective (MBO) and goal setting: MBO is a process of collaborative goal-setting between a manager and a subordinate with the understanding that the degree of goal attainment by the subordinate will be a major factor in evaluating and rewarding the subordinates performance. Agrani Bank Limited has seven specific targeted goals to achieves which are 1) Deposit 2) Recovery of Loan 3) Profit 4)Import 5) Export 6) Foreign Remittance. The performance of the target evaluated in the promotion criteria. (2) Monetary incentives: Money can never be overlooked as a motivator. Whether in the form of bonuses, piecework, or any other incentive pay, money is important. And, as some writers have pointed out, money is often more than monetary value. It can also mean power or status. In Agrani Bank Limited incentives on deposit mobilization & Recovery of

Classified loans is used as the technique of motivation. In 2007 Agrani Bank Limited earned a profit of Tk- 5540 million. Considering the overall performance of the subordinates the board of directories sanction an special increment to all the employees with effect from 01/03/08.

Page 47 of 81

The Job Characteristics Model:

If the type of work a person does is important, can we identify those specific job characteristics that affect productivity, motivation, and satisfaction. A model has been developed by J. Richard Hackman and Greg R. Oldham that identifies five such job factors and their interrelationship. It is called the Job Characteristics model. The research with this model indicates that it can be a useful guide in redesigning the jobs of individuals.

The model specifies five core characteristics or dimensions:

1. Skill variety- the degree to which a job requires a variety- the degree to which a job requires a variety of different activities so one can use a number of different skills and talents. 2. Task identity- the degree to which the job has a substantial impact on the lives or work of other people. 3. Task significance the degree to which the job requires completion of a whole and identifiable piece of work. 4. Autonomy- the degree to which the job provides substantial freedom, independence, and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out. 5. Feedback- the degree to which carrying out the work activities required by the job results in the individual obtaining direct and clear information about the effectiveness of his or her performance.
Motivation potential score= Skill Variety + Task Identity +Task significance Autonomy job feedback
3

Agrani Bank Limited

designed its job as stated above and maintains ACR(Annual

Confidential Report) for its employees performance review which acts as a permanent instrument for motivation.

Job Rotation:
Job rotation involves moving employees to various positions in the organization in an effort to expand their skills, knowledge, and abilities. Job rotation can be either horizontal or vertical. Vertical rotation is nothing more than promoting a worker into a new position. In this chapter, we will emphasize the horizontal dimension of job rotation, or what may be better understood as a short-term lateral transfer.

Page 48 of 81

Job rotation represents an excellent method for broadening an individuals exposure to company operations and for turning a specialist into a generalist. In addition to increasing the individuals experience and allowing him or her to absorb new information, it can reduce boredom and stimulate the development of new ideas. It can also provide opportunities for a more comprehensive and reliable evaluation of the employee by his or her supervisors. Agrani Bank Limited strictly maintains Job rotation system to train up and motivate its employees. Agrani Bank has a permanent standing instructions to perform job rotation in each 3 months if possible.

3.2 Pay Structure & Benefits :

Reward system is the most vital component of motivation. Where there is a comfortable reward system every employee wants to work smoothly in the organization. An average employee in the organized sector is entitled to several benefits-both financial as well as non financial, to be specific typical remuneration of an employee comprises-wages and salary, incentives fringe benefits , and non-monetary benefits.

Wages and salary

Wages represent hourly rates of pay and salary refers to the monthly rate of pay irrespective of the number of hours put in by an employee. Wages and salaries are subject to annual increments. They differ from employee to employee, and depend upon the nature of job, seniority, and merit.

Incentives
Also called 'payments by results', incentives are paid in addition to wages and salaries. Incentives depend upon productivity, sales, profit, or cost reduction efforts. There are: (i) individual incentive schemes, and (ii) group incentive programmers. Individual incentives are applicable to specific employee performance. Where a given task demands group effort for completion, incentives are paid to the group as a whole. The amount is later divided among group members on an equitable basis.

Page 49 of 81

Fringe-Benefits
These include such employee benefits as provident fund, gratuity, medical care, hospitalization accident relief, health and group insurance, canteen, uniform, recreation and the like.

Perquisites
These are allowed to executives and include company car, club membership, paid holidays, furnished house, stock option schemes and the like. Perquisites are offered to retain competent executives.

Non-monetary Benefits
These include challenging job responsibilities, recognition of merit, growth prospects, and competent supervision, comfortable working conditions, job sharing, and flexi time. Agrani Bank Limited follows the National Pay Scale-2005(with effect form 01-01-2005) for employees remuneration as adopted by Government notification No AM/AB/BANKING/ADMIN-3/PS-5/97-110 Dated 04-06-2005 of Banking Wing, Ministry of Finance. There is no reward system of its own. As a Nationalized Commercial Bank its Reward system was as under National Pay Scale. Still today it is followed by Agrani Bank Limited excepting one single extra increment added with Pay Scale by the decision of the Board of Directors of the Bank form 1st March2008. The National Pay Scale is as follows. Scale Grade-1 Grade-2 Grade-3 Grade-4 Grade-5 Grade-6 Grade-7 Grade-8 Grade-9 Grade-10 Grade-11 Grade-12 Grade-13 National Pay Scale-2005(with effect form 01-01-2005) Tk 23000 (fixed) Tk 19300-700x4-22100 Tk 16800-650x6-20700 Tk 15000-600x8-19800 Tk 13750-550x10-19250 Tk 11000-475x14-17650 Tk 9000-405x16-15480 Tk 7400-365x16-13240 Tk 6800-325x7-9075-EB-365x11-13090 Tk 5100-280x7-7060-EB-300x11-10360 Tk 4100-250x7-5850-EB-270x11-8820 Tk 3700-230x7-5310-EB-250x11-8060 Tk 3500-210x7-4970-EB-230x11-7500

Page 50 of 81 Grade-14 Grade-15 Grade-16 Grade-17 Grade-18 Grade-19 Grade-20 Tk 3300-190x7-4630-EB-210x11-6940 Tk 3100-170x7-4290-EB-190x11-6380 Tk 3000-150x7-4050-EB-170x11-5920 Tk 2850-130x7-3760-EB-150x11-5410 Tk 2600-120x7-3440-EB-130x11-4870 Tk 2500-110x7-3270-EB-120x11-4590 Tk 2400-100x7-3100-EB-110x11-4310

Exhibit : 10, National Pay Scale-2005 at a glance

Page 51 of 81

House rent Allowances (According to National Pay Scale-2005):

Rate of House Rent (Monthly) For Dhaka Narayangonj, Tongi, Metropolitan Area Chittangonj, Khulna, Rajshahi, Sylhet, Barisal Metropolitan/ Up to TK 2800 65% of Basic Salary Form TK 2801 to 6000 Form TK 6001 to12000 Form TK 12001 to Above Minimum 1590 60% of Basic Salary Minimum 1820 55% of Basic Salary Minimum 3600 50% of Basic Salary Minimum 6600 Municipal Area 55% of Basic Salary Minimum 1370 50% of Basic Salary Minimum 1540 45% of Basic Salary Minimum 3000 40% of Basic Salary Minimum 5400 50% of Basic Salary Minimum 1250 45% of Basic Salary Minimum 1400 40% of Basic Salary Minimum 2700 35% of Basic Salary Minimum 4800

Basic Salary

For Another Places

Exhibit: 11, House Rent Allowances of Agrani Bank Limited

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Daily Allowances:
The following Daily Allowances rates are Implemented in Agrani Bank Limited adopted by Government notification No AM/AB/BANKING/ADMIN-3/ELA-5/2002-430 Dated 1212-2007 of Banking Wing, Ministry of Finance. Classification Basic Salary General Rate Rate of Expensive Palaces (i.e Dhaka, Narayangonj, Chittagong, Khulna, KA- Class officer TK 6800 to 9000 TK 9001 to 14999 TK 15000 to 20690 Tk 200 Tk 250 Tk 300 Rajshahi, Barisal & Sylhe) 33% above than general rate

KHAofficer/Staff

TK 20700 to 22699 Tk 350 TK 23000 & Above Tk 400 Class All 2nd Class officer, Tk 140 Basic Salary less than TK 6800 All 3rd Class employee, Tk 120 basic salary greater than TK4800 above All staff except KHA Tk 100 & GHA class All 4th class employee Tk 80

33% above than general rate

GA- Class Staff GHA- Class Staff

33% above than general rate 33% above than general rate

Exhibit: 12, Daily Allowances of Agrani Bank Limited

Page 53 of 81

Other Allowances:
Except the above mentioned allowances Agrani Bank Limited also follows all of the terms and conditions of National Pay Scale-2005 for employees remuneration such as; a. Convince Allowances b. Bonus and Rest & recreation Allowances c. Lunch Subsidy(updated by Agrani Bank form 01-09-08 to Tk 75/- daily) d. Children education Allowances e. Washing Charges f. Charge Allowances g. Evening Banking Allowances h. Transport Fair for transfer i. Hill Allowances j. Remote/Isolated Area allowances k. Medical Allowances

3.3 : PERFORMANCE APPRAISAL The Performance Appraisal:

Performance appraisal is the process by which an employees contribution to the organization during a specified period of time is assessed. Performance feedback then lets employees know how well they have performed in comparison with the standards of the organization. Performance appraisal and feedback can be an emotionally laden process that dramatically affects employees attitudes toward the organization and themselves. If used effectively, performance appraisal can improve employee motivation and performance. If used inappropriately, the appraisal process can have disastrous effects.

Page 54 of 81

Steps in Performance Appraisal: Steps of Performance appraisal is shown in the

under mentioned diagram.

1. Establish performance standards with employees

2. Communicate Performance Expectation to Employees

3. Measure actual performance

4. Compare actual performance with standards

5. Discuss the appraisal with the employee

6. If necessary, initiate corrective action

Exhibit 13: The Appraisal Process

Page 55 of 81

A. Effectively Evaluation Employees:

We offer the following steps that can assist effectively evaluation employees. (1) Prepare for, and Schedule, the Appraisal in Advance (2) Create a Supportive Environment to Put Employees at Ease (3) Describe the Purpose of the Appraisal to Employees (4) Involve the Employee in the Appraisal Discussion, Including a Self-Evaluation (5) Focus Discussion of Work Behaviors, Not on the Employees (6) Support Your Evaluation with Specific Examples (7) Ensure Employees Understand What Was Discussed in the Appraisal (8) Generate a Development Plan

B. Factors that can distort appraisal

Leniency Error:
Every evaluator has his or her own value system that acts as a standard against which appraisals are made.

Halo Error
The halo error or effect is a tendency to rate high or low on all factors due to the impression of a high or low rating on some specific factor

Similarity Error:
When evaluators rate other people in the same way that the evaluators perceive themselves, they are making a similarity error. Agrani Bank Limited has a performance planning department. It has also Planning & Research department but there is only off sight supervision which is not sufficient for performance appraisal & Job evaluation. Though the yearly ACR (Annual Confidential Report) is the formal performance evaluation system but it is not fruitful for inefficiency of Management.

Page 56 of 81

3.4 Welfare Facilities

Like before, the Staff Welfare Fund, which is run by the Banks employees out of their regular contribution, continued to stand by its members for their well-being. A Board of Trustees is run by Bank to provide staff members a sum of money as admissible under the rules on his/ her termination or retirement from the Bank services or to his/ her nominee or legal representative in case of death. To this end, two funds- Agrani Bank Limited Employees Provident Fund and Agrani Bank Limited Super Annuation Fund, are maintained. During 2007, a sum of Tk. 2.56 million was doled out to the employees concerned and their spouses for health care. The Fund also provided Tk. 1.66 million by way of scholarship to 377 children of the employees for outstanding performance in S. S. C and H. S.C examinations. The Bank encourages its employees to shake off monotony by engaging them in recreational activities in the form of sports and culture. Its soccer and cricket teams, qualified in the First Division and the Premier Division League, have regularly been participating in various tournaments. The Bank also patronizes sports and cultural activities throughout the country.

Environmental Policy
Banks environmental management policy stipulates adherence to environmental heath and safety regulations and guidelines refraining from business that impairs the ability of its future generations to meet their own needs. The policies with regard to safety, health and environment management are also being observed in lending practices.

3.5

Disciplinary & Appellate Activities:

takes effective measures to dispose off the disciplinary cases of the Appellate & Disciplinary Division (ADD) of the bank does this. disciplinary cases of 122 officers and staff were disposed off where related to 138 incumbents were disposed off in the year under

Agrani Bank Limited officers & staff. The During the year 2007, as disciplinary cases reference.

Among 138 incumbents, major penalties were imposed on 47 officers and staff by way of dismissal/removal. 4 officers were given demotion to immediate lower grade & 2 officers were scaled down to immediate lower scale. On the other hand, annual grade increments of 34 officers & staff were forfeited, 17 incumbents were censured, administrative warning were served on 12 persons & 22 incumbents were exonerated from the charges.

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3.6Business Performances
During the year 2006, the amount of deposits increased by Taka 128.92 Billion and the total deposits stood at Taka 135.92 Billion at the end of 2007 as against 130.84 Billion in 2005. The deposits growth rate was 6.78% during 2006. To make the net interest margin favorable, the Bank gave more emphasis on tapping low cost deposits. The deposits are as follows: (Taka in crore) Type As on 31-12-2006 Amount % of Total As on 31-12-2007 Amount % of Total Deposits 10.85% 8.41% 38.04% 20.96% 1.02% 18.48% 2.24% 100%

Current deposits STD Savings deposits Fixed deposits DPS APS Others Total

Deposits 724.60 6.17% 1359.93 974.00 8.29% 1054.81 4373.82 37.25% 4769.84 2690.79 22.91% 2627.80 381.07 3.25% 127.72 1923.95 16.38% 2318.6 674.48 5.75% 280.80 11742.71 100.00% 13538.96 Exibit 14 : Business Performance

Asset Quality
The new management has placed utmost importance to improve the quality of assets and as such an amount of Tk.240.41 crore was recovered in cash from the classified loans and advances in 2007 as against Tk. 162.80 crore of 2006. Moreover, the classified loans reduced to 28.07% in 2007 as against 29.57% of 2006. The performing loans in 2007 increased by Tk. 609.90 crore to Tk. 6900.02 crore from Tk. 6290.12 crore in 2006.

Profitability
During the year 2007, the Bank has incurred an operating loss of Tk.75.21 crore and the net loss stands at Tk.2172.11 crore owing to charging of cumulative provision shortfall against loans & advances and super annotation fund since 1972 in order to comply with IAS-30 which has been adopted in Bangladesh as BAS-30 and implemented by Bangladesh Bank vide BRPD Circular, No.14 dated 25 June 2003 and as such the auditors certified the accounts without any qualification. In spite of huge volume of accumulated loss in 2004, the Bank is on the path of recovery and takes steps in consolidating its position resulting in an operating profit of aboutTk.1 09.00 crore attend of June 2005.

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Foreign Exchange Business

(Imports, Exports & Remittances) Agrani Bank Limited has glorious history in mobilizing Foreign Exchange Business with a few exceptions made in some years before. In 1994, its Foreign Exchange Business was a record high among all banks in Bangladesh. The Bank has a wide network of 40 Authorized Dealers throughout the country. Out of these branches, 15 are in Dhaka,8 in Chittagong and the remaining 17 branches are in other parts of the country. Equipped with skilled manpower, the Bank is confident of running Foreign Exchange Business efficiently to the satisfaction of the importers, exporters and Bangladeshi expatriates working abroad. The Foreign Exchange Business witnessed a much better performance in 2007 than the previous year. The volume Foreign Exchange Business of imports increased substantially by Tk. 9.36 Billion to as on 31.12.2006 Tk. 115.92 Billion in 2007 against imports of Tk. 125.38 Billion in 2006. Similarly, the export earnings also increased to Tk.4, 2.28 in 2006 from Tk.51.71 Billion, which was higher by Tk.53.99 Billion compared to 2006. The Foreign Exchange Remittances from Bangladeshi nationals working abroad increased remarkably by Tk.1.99 Billion to Tk. 41.29 Billion in 2007 from Tk 39.30 Billion in 2006. This increase was 34% higher than the previous year.

Page 59 of 81 The summarized position of imports, exports and inward remittances are furnished in exibit-2.

Foreign Exchange Business

As on 31.12.2007

Im ports E x po rts R em ittan c es

(Taka in Billion) Sl No Item 1. Imports 2. Exports 3. Remittances GRAND TOTAL 2006 2007 Increase 115.92 125.38 9.36 51.71 53.99 2.28 39.30 41.29 1.99 206.93 220.66 13.63 Exibit 15 : Foreign Exchange Business Growth rate 24% 17% 34% 24%

Agrani Bank Limited has as many as 399 foreign correspondents throughout the world for smooth conduct of International Trade and settlement thereof. In addition to this. The Bank is maintaining 40 NOSTRO Accounts in US Dollar. Euro and some other currencies with those first class banks. Which are located in important financial center of the world. In order to increase the inflow of foreign remittances from the Bangladesh expatriates working abroad, the Bank has Taka Draft/Electronic Fund Transfer arrangement with 19 Exchange Houses and 4 banks of the Middle East and the Gulf States. The Bank's constant endeavor and commitment to send the remittances within the shortest possible time to the beneficiaries have also encouraged the remitters to send more money through the Agrani banking channel.

4th Board meeting of Agrani Exchange House Pte. Ltd. Singapore Treasury Operation

Page 60 of 81 Foreign exchange dealing, money market operation. Investment in Treasury Bills, Shares & other Capital market operations, maintenance of Cash Reserve Requirement (CRR) and Statutory Liquidity Requirement (SLR) are the major functions of the Treasury. The foreign exchange operations were conducted taking into consideration of the L/C. commitment. Foreign remittance inflow and export performances.

3.7 Loans and Advances

General Credit The amount of loans and advances of the Bank as at the close of 2007 was Tk. 118.49 billion as compared to Tk.105.87 billion in the previous year: advances increased by 12.62 billions with a growth rate of 11.92 per cent. The outstanding loans and advances as on 31 December, 2007 are shown in the chart below:
30 25 20

The outstanding loans and advances as on 31.12 2007 (Taka in billion)

Tk. 25.87 Tk. 22.54 Tk. 9.82 Tk. 21.63

Indudtrial Credit Agri Credit House Building

Tk. 12.27

Working Capital (Industrial)

Tk 7.61

Tk. 5.55

Tk 5.65

15 10 5 0

Tk 6.95

Commercial Loan Import Export Transport Loan Staff Loan

Tk 0.61

Others

Exibit 16 : outstanding loans and advances as on 31.12 2007 Trade, Commerce and industry Agrani Bank Limited, in the greater national interest, continues to finance trade, commerce and industry by providing short-term, mid and long-term loans for major sectors like: ready-made garments, raw jute and jute goods, chemicals and pharmaceuticals, iron and steel, fertiliser, food, tea and leather. The Bank also helps stabilise food price and its supply by providing advances for procurement and preservation of food grains internally on a priority basis. Industrial Credit

Page 61 of 81 Agrani Bank Limited has been playing a significant role in supporting the Government policy of rapid industrilisation. The Bank continues its specialised services for financing medium and long-term capital finance as well as short-term working capital finance to industrial projects. The total outstanding against industrial project loan, excluding working capital loan as on 31 December 2007, stands at Tk. 21.54 billion which is 18.18 per cent of the Banks total loan portfolio. Agrani Bank Ltd has extended credit facilities to allimportant sub- sectors of the economy. Sector-wise position of industrial credit excluding working capital loan as on 31 December 2007 is given in the pie chart below: Sector wise Percentage of Industrial Credit excluding Working capital as on 31.12.2007
6% 7% 10% 1% 4% 7% Engineering & Electronic Chemicals Service Hide, Skin & Leather Goods Cement Cold Storage 7% 7% 3% 50% 0.38 % Food & Allied Agro-based Pharmaceuticals Textile & Garments Others

Ready-m

Exibit 17 : Sector wise Percentage of Industrial Credit Credit Lines Agrani Bank Limited has utilised IDA Credit, Exim Credit, ADB Credit and OPEC credit lines for onward lending in addition to Banks own sources. The balance outstanding against the loans and the number of project funded are appended Below: (Taka in billion) Number of Project Amount Outstanding a. Foreign Fund 262 0.62 b. Banks own Fund 2476 21.54 SME Credit Beyond conventional banking, the Bank has also been participating in several SME programmers through its own efforts and in collaboration with different national and international agencies like Bureau of Manpower Employment and Training (BMET), Bangladesh Small and Cottage industries Corporation (BSCIC), NGOs (Bangladesh Rural Advancement Committee-BRAC, Association for Social Advancement- ASA, Grameen Uddag), international Fund for Agricultural Development (IFAD), United States Agencies for International Development (USAID), Asian Development Bank (ADB), Norwegian Agency for Development Co-operation (NORAD), Swedish International Development Agencies (SIDA) etc. These are aimed at reinforcing efforts of the Government to meet

Page 62 of 81 strategic objectives of alleviating poverty of the rural poor, supporting small and micro enterprises/ entrepreneurs, increasing output, easing unemployment problem and strengthening the rural financial market. So far, the beneficiaries under the 14 programmers implemented by the SME and Micro Credit Division include 514868 small entrepreneurs of different sectors. Agri and Rural Credit The Bank kept financing one of the countrys priority sectors-agriculture. It started accommodating millions of the rural poor with the mainstream development activities in areas of livestock, fishery, poultry, nursery as well as many off-farm projects and the like in line with the government policies. Poverty alleviation through income generating activities is one of the strategic priorities that the Bank has kept pursuing to make the institutional help available to marginal farmers, small entrepreneurs, distressed and destitute women as well as unemployed youths. A number of targeted programmes with loan limits of Tk.5000 and above haven been continuing. In 2007 the Bank implemented 54 programmes among 3705642 borrowers, involving Tk. 35.54 billion. Loan Classification and provisioning Reduction in the number and value of classified loans and advances has been a major priority of the Bank, along with maintaining a commensurate provision. Various initiatives were taken and adequate measures adopted to achieve the optimum result. The main focus was on the intensive and strict follow-up in respect of recovery of previous classified and overdue loans along with new ones. Recovery of Non-performing Loan The Bank has geared up its efforts to reduce Classified and overdue loans and take appropriate for converting non-performing loans into performing ones. With this end in view, intensive monitoring both at the field and Head Office level was carried out. A Debt Collection Unit was also set up inside the Bank for effective follow-up and recovery of loans. 3 private Debt Collection Agents were appointed to recover non-performing and written-off loans. Recovery position of classified and overdue loans during 2007 is shown below:

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Recovery position of Classified and overdue loans during 2007:

Outstandin g Amount as on 31.12.2006 27.82 4.40 32.22 Annual Target of Recovery (2007) 10.00 4.40 14.40 Amount Recovered in 2007 Cash Recovery 2.19 2.32 4.51 Others* 1.23 1.80 3.03 Writeoff 2.70 0.00 2.70 Total 6.12 4.12 10.24 Percentage of target Accomplishment 61% 94% 71%

Type of Loans Classified Loan Overdue Loan Total

* Other recovery consists of rescheduling, renewal waiver of interest. Recovery Position of Classified and overdue loans during-2007
35 Oustanding A mount as on 31.12.2006 30 25 20 15 10 5 0 A nnual Target of Recovery (2007) Cas h Rec overy Other's Write-of f Total

Classified Loans

Overdue Loans

Total

Exibit 18 : Recovery Position of Classified and overdue loans during-2007

3.8 Financial Result

Total income The Banks total income after corporatisation was Tk. 7.08 billion while total income earned in 2007 stood at Tk. 13.68 billion as against total income of Tk. 12.33 billion in 2006, registering an increase of Tk. 1.35 billion which was 10.95 per cent higher over the last year. Total Expenditure After corporatisation, total expenditure stood at Tk.4.30 billion whereas during 2007 total expenditure was Tk. 8.42 billion. In 2006, total expenditure was Tk.8.75 billion. Net Profit

Page 64 of 81 After corporatisation, the Banks after-tax net income stood at Tk.0.86 billon. However, during 2007, the Banks total net profit stood at Tk.3.16 billion as against Tk. 1.94 billion of 2006, showing an increase of 62.88 cent the net profit of 2006. Shareholders Equity As per venders agreement dated 15 November, 2007 the Agrani Bank Limited has paid Tk.2.48 billion by issuing shares to the Government. The equity of the Bank stood at Tk. 3.34 billion on 31 December, 2007 along with reserve and undistributed profit of Tk.0.86 billion. Appropriation of Profit Out of the net profit of Tk.0.86 billion (after tax) earned after corporatisation, the Board of Directors proposed to transfer an amount of Tk.0.16 billion to Statutory Reserve Account and the rest balance amount of Tk. 0.70 billion to Retained Surplus Account. No dividend for the year 2007 has been recommended by the Board.

Page 65 of 81 Balance Sheet As at December 31, 2007 PROPERTY AND ASSETS Cash: Cash in hand (including foreign currencies) Balance with Bangladesh Bank and its agent bank (including foreign currencies) Balance with other banks and financial institutions: In Bangladesh Outside Bangladesh Money at call and short notice: Investments: Government Other Loans and advances: Loans, cash credit & over draft etc. Bills discounted and purchased Fixed assets including land, building, furniture and fixtures Other assets: Non-banking assets: Total assets LIABILITIES & CAPITAL Liabilities: Borrowings from other banks, financial intuitions and agents Deposit and other accounts: Current deposits & other accounts Bills payable Savings bank deposits Fixed deposits Other liabilities: Total liabilities : Capital / Shareholders equity : Paid- up Capital Reserve: Statutory reserve Retrained surplus/ deficit) from profit and loss account Total shareholders equity: Total liabilities and shareholders equity: December 31, 2007 Taka 8,584,441, 263 1,728,481,748 6,855,959,515 3,360,727,185 1,111,786.077 2,248,941,108 1,110,000,000 21,902,263,978 19,714,838,500 2,187,425,478 118,493,857,283 115,597,766,338 2,896,090,945 2,481,337,763 30,347,758,101 186,280,385,573

9,422,761,235 135,921,381,916 21,164, 487,330 3,066,541,752 60,011,825,052 51,678,527,782 37,593,533,139 182,937,676,290 2,484,200,000 159,728,906 159,728,906 698,780,377 3,342,709,283 186,280,385,573

Page 66 of 81

Off Balance Sheet items:

December 31, 2007 Taka

Contingent Liabilities: Acceptances and Endorsements Letters of guarantee Letters of credit Bills for collection Other contingent liabilities Claims against the Bank not acknowledged as debt Exibit 19 : Balance Sheet 67,961,485,412 1,050,604,255 42,568,362,821 11,069,872,267 2,132,659,069 11,139,987,000

Page 67 of 81 Profit and Loss Account For the year ended December 31, 2007
Operating Income Interest income Interest paid on deposits, borrowings etc. Net interest income Investment income Commission, exchange earnings and brokerage Other operating income Total operating income (A) Operating expenses Salary and allowances Rent, taxes, telecommunication etc. Legal expenses Postage, stamp, telecommunication etc. Stationery, printing, advertisement etc. Managing Directors Salary and allowances Directors fees Auditors fees Depreciation and repair of banks assets Sale from dealing with non banking assets Other expenses Total operating expenses (B) Profit / (Loss) before provision (C) = (A B) Provision for loans and advances Other provision Total provision (D) Total profit / (Loss) before tax (C D) Provision for tax Current tax Deferred tax Net profit / (Loss) after tax Add. Retained surplus/ (deficit) for the previous period Appropriation : Statutory reserve General reserve Dividends payable to Govt. Retained surplus Earning Per Share (EPS) Taka 4,380,233,235 2,619,649,994 1,760,583,241 949,921,751 1,424,781,198 328,922,154 4,464,208,344 1,348,606,092 122,771,951 6,569,702 38,368,267 45,346,073 549,040 2,013,680 53,980,314 65,505,068 1,683,710,187 2,780,498,157 1,618,001,212 363,852,417 1,981,853,629 798, 644, 528 (59,864,755) (59,864,755) 858,509,283 858,509,283 159,728,906 698,780,377 34.56

Exibit 20 : Profit and Loss Account

Page 68 of 81 Cash Flow Statement For the year 2007

Taka A. Cash flows from operating activities Interest receipts in cash Interest payments Dividend receipts Fees and commission receipts Recovery on loans previously written off Cash payments to employee Cash payments to suppliers Receipts from other operating activities Payments for other operating activities Operating profit/ (loss) before changing in operating assets andbiabilities Increase)/ decrease in operating assets Statutory deposit Treasury bills Repo Fund advance to customers Other assets 5,023,538,840 (2,862,463 080) 3,730,156 497,497,986 71,645,564 (1,340,968,179) (46,276,541) 364,288,529) (253,534,603) 1,457,458,672 6,394,910,242 2,100,00,000 (13,872,630,825 ) (2,692,518,912) (8,070,239,495) (142,623,775) 1,382,964,482) 1,240,340,707 (5,372,440,116)

Increase/ (decrease) in operating liabilities Deposit from customers Other liabilities Net cash from operating activities A B. Cash flows from investing activities Other bond Debenture Purchase of securities Purchase/ sale of properties, plants & equipment Proceeds from sale of properties, plant & equipment Net cash from investing activities B C. Cash flows from financing activities Payments of long term borrowings Receipts from other borrowings Net cash from financing activities C Net increase in cash and cash equivalents (A+B+C)=D Effect of exchange rate change on cash and cash equivalent Cash and Cash equivalents at beginning of the period Cash and cash equivalents at end of the period (408,743 828) 6,845,845,817 6,437,101,989 (1,794,454,034 879,862,062 13,978,579,920 13,063,987,948 (2,852,356,000) 15,000,001 (24,000) (21,735,908) (2,859,115,907)

Exibit 21 : Cash Flow Statement

Page 69 of 81 Statement of Changes in Equity For the year 2007

Particulars Balance as at 01-01- 2007 Changes in accounting policy Restated balance Surplus/ deficit on account of revaluation of investments Currency transaction differences Net gains and losses not recognized in the income statement Net profit for the period Appropriation made during the period Assets Revaluation Reserve Taka Taka 2, 484, 200, 000 Paid-up Capital 2,484, 200, 000 Statutory Reserve Taka Other Reserve Taka profit and Loss Account Taka Total Taka 2,484, 200, 000 2,484, 200, 000 858, 509, 283 -

159, 728, 906

858, 509, 283 (159,728,906)

Balance as at December 31, 2007

2, 485,200,000

159, 728, 906

698,780,377

3,342,709,283

Exibit 22 : Statement of Changes in Equity

Page 70 of 81

Glimpses Of Five Years Financial

(Taka in billion)
Agrani Bank 2003 Paid-up Capital Reserve Fund Retained Profit (Loss) Total Equity Total Deposits Total Loans and Advances Net Loans and Advances Investments Forex Business i. Imports: ii. Exports: iii. Remittances: Total: Guarantee Business Total income Total Expenditure Provision Interests Suspense Fixed Assets Total Assets Operating Profit Net Profit (Loss) after provision and tax Cost of Fund Number of Branches Number of Employees Number of Correspondent Banks with NOSTRO A/c. Number of Foreign Correspondents Return on Equity Return on Assets Net Interest Margin Average Yield on Loan Loans as percentage of Deposit (A.D. Ratio) Gross Classified Loans to Total loans Net Classified loans to Net loans 2004 2005 2006 2.48 0.29 (18.10) (15.33) 128.92 105.87 83.58 22.31 115.92 51.71 39.30 206.93 1.08 12.33 8.75 0.29 8.92 0.41 154.08 3.58 1.94 6.84% 866 11793 38 416 1.26% 2.96% 9.53% 82.12% 26.27% 6.61% 2007 (01 Jan. to 30 June) 2.48 2.48 136.06 104.56 83.63 27.46 63.05 24.93 20.22 108.20 1.03 6.60 4.12 0.24 7.98 .39 160.49 2.48 2.30 6.52% 866 11568 38 416 1.43% 3.56% 10.68% 76.85% 26.94% 8.23% Agrani Bank Limited 2007 ( 01 July to 31 Dec.) 2.48 0.16 0.70 3.34 135.92 118.49 95.09 21.90 50.38 23.99 22.59 96.96 1.05 7.08 4.30 1.98 9.50 2.48 186.28 2.78 0.86 6.68% 866 11345 39 416 29.55% 0.92% 3.69% 10.35% 87.18% 26.83% 8.82% Total (01 Jan. 2007 to 31 Dce. 2007)` 2.48 0.16 0.70 3.34 135.92 118.49 95.09 21.90 113.43 48.92 42.81 205.16 1.05 13.68 8.42 2.22 9.50 2.48 186.28 5.26 0.86* 6.68% 866 11345 39 416 29.55% 0.92% 3.69% 10.35% 87.18% 26.83% 8.82%

2.48 2.48 2.48 0.34 0.34 .34 (21.72) (20.08) 2.82 (18.90) (17.26) 117.43 125.39 130.84 89.31 95.92 99.40 79.67 71.32 75.41 31.50 26.85 24.33 28.97 35.75 27.43 92.14 1.38 9.40 9.13 0.26 8.50 0.48 141.44 0.26 0.0014 7.51% 872 12514 37 391 7.78% 0.19% 0.89% 9.93% 76.06% 29.57% 21.05% 35.91 51.19 41.97 41.71 36.84 34.57 114.72 127.47 1.21 1.18 9.02 10.60 9.77 8.46 20.97 3.74 11.24 9.59 0.48 0.44 151.38 155.53 (0.75) 2.14 (21.72) 1.63 8.51% 6.95% 870 864 12208 11938 41 399 (0.50%) (0.45%) 7.59% 76.50% 28.07% 3.25% 41 410 1.05% 1.73% 7.94% 75.98% 28.31% 5.51%

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

Exibit 22 : Glimpses Of Five Years Financial

Page 71 of 81

Conclusions & Recommendation

Conclusions Recommendation References

CHAPTER-4

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CONCLUSION & RECOMMENDATION : Conclusion :

As an employee of Agrani Bank Ltd. We are very sensitive to the society that we operate within. We have a deep commitment, loyalty and a high sense of responsibility to our nation and the people. Our ethics are clear: not to earn excessive profits, but to operate in a rational and sensitive way. Also in 2007, we lived up to our commitment by donating Tk. 02 million to Dhaka Ahsania Mission for building its cancer hospital in the capital. Immediately after two consecutive floods, the Agrani family donated Tk. 3.3 million along with Tk. 1.7 million from the Bank totalling Tk. 5.00 million to support the disaster management effort. Following the Sidr that devastated the countrys coastal areas, our hundreds of employees, including a high-profile team from Head Office, volunteered their services to support relief operations and disburse relief goods in the affected areas. Discussing the above topic we can draw a conclusion by saying that, although the loan recovery performance of Agrani Bank Limited is not so good but still it can be improved. We have discussed, what are the problems and issues that are appearing as barriers on the way of foreign credit recovery of Agrani Bank Limited We have also discussed about what we can do to overcome those problems. We know that, the recommendations that I have mentioned above cannot be implied hundred percent. But at least we can try our level best to eliminate those problems as much as possible. I think if the foreign credits are properly disbursed to viable projects and some of the lenders can change the bad practice of "rescheduling of loans" then it is possible for Agrani Bank Limited to recover the loans to the four foreign organizations (ADB, IDA, OPEC & EXIM Bank). Only this way we can hope to become a self -dependent country and can wish for a stable growth in industrial sector.

Page 73 of 81 This is my findings from 08 years of experience in my organization and Management should have the steps from these hypotheses to perform the best objective for Agrani Bank Limited.

Recommendations
Theoretically, the model presented in this research paper identify the base of Banking practice by the management of Agrani Bank Limited as well as state-owned commercial Banks(SCBs) of Bangladesh that are perceived to the significant in explaining the organizational commitment. Despite the perceptual nature of the dimensions rather than objective, the two power bases found significant from the study robustly explain the organizational commitment of the employee in Agrani Bank Limited. The model can help the Government, Bangladesh Bank and the SCBs Management plan and Implement changes in the authority- responsibility structure in this Bank so the Managers can exercise their power more effectively and yet yield higher commitment, performance, and performance satisfaction from the employees.

The results of this study must be viewed by the management of Agrani Bank Limited as an overall evaluation of their use of Banking and such use of it is important for employee performance. In todays dynamic work environment, management of human resources calls for more than just leading by instinct and the Managers must modified their own behavior towards the sub-ordinates in order to ensure favorable behavior from them in return. Motivation, Commitment to the organization, Job performance and in opposite job securities should be concreted endeavor on the part of both policymakers and management of Agrani Bank Limited as well as NCBs of Bangladesh to consider this human aspects of management.

Concerning the above problems & issues some recommendations may be offered that can help us to overcome those problems. These are as follows:
Implementation Execution and Implementation Taskforces for organizational change & development is termed by Management Advisory Team(MAT) as Long Term Management Plan (LTMP).Now that the diagnostic and LTMP have been completed, the focus of the activities of the MAT now shifts to execution of the plan, with the primary role of the MD and CEO being to give executive authority to the recommendations.

Page 74 of 81

We propose Agrani establishes and Implementation Taskforce for each advisory area. The objective of each taskforce is to oversee and give direction to the implementation of the LTMP recommendations which are as follows:

A) Branch Management:
To set up a Strategic Planning and control unit in Agrani Bank Limited to keep its growth in synch with national and industry growth Major actions would be; Board, in the light of selected scenario, to define vision and mission for the Bank. Generate projected balance sheets, cash-flows and profit and loss for next five years Align future annual performance budgets to this planning process

B) Bank should activate a data-based analytical accountability oriented Performance Planning and Budgeting System
Set up a function to integrate strategic plan projections with the expected economic and fiscal developments for the year Do an impact matrix analysis and work out business goals of the year for Boards approval. Monitoring system must analyze budgetary successes and failures each month.

C) Bank should ensure that individual branch profit and loss is correctly assessed by setting up a fair and logical Fund Transfer Price policy.
Establish a Funds Transfer Pricing approach Ask branches to re-work branch profitability, for last three years on same FTP to allow analysis of trend of profits/losses on a comparable and consistent method

Page 75 of 81 use time scale profit and loss of individual loss making branches to identify branches requiring closure, downsizing, or merger. Obtain Board, Bangladesh Bank, MOF, approvals to close, merge, downsize such branches. Phase entire activity over and appropriate time period.

D) Bank should Set-up a god Market Planning and Control System

Introduce Market segmentation Carry out a comprehensive profiling of present customers of the Bank Carry out market research of customers deal with major competitors Carry out Quarterly market share analysis. Initiate a Product Planning and Development function Rework and redesign branch network Supplement through ATMS, electronic banking Government Business Marketing, and introduction of Islamic Banking

E) Bank should Regularize Major strategic and policy issues:

Train board in the need for and particulars of good credit extension policy Establish a bank-wide awareness of the need to balance risk and reward Define market strategy Determine organizational changes required Delineate credit training needs Identify MIS requirements

F) Information Technology:
1: Improve process efficiency in the short run by exploiting existing under utilized IT resources

Page 76 of 81

2: Launch a core banking Application and associated technologies

Create a WAN covering HO, 7 circle office, 52 Zonal office and 40 Corporate/AD branches. Expand the WAN in future in keeping with business strategy Acquire one core banking software to provide efficiency of back office processes, interface with modern delivery channels and full functionalities in retail banking, corporate banking, foreign exchange and treasury Develop a Disaster Recovery Plan(DRP) and acquire a disaster recovery site as part of the DRP. Build up capable IT organization to support the new technology.

3: Develop policies and implement procedures/tools for IT security and control. 4: Competent human resources need to be ensured in audit division
Existing manpower of internal audit division has to be rationalized. Competencies of manpower have to be increased by arranging training courses. Working practices need to be improved. A well defined audit manual should be introduced. An annual audit plan should be prepared based on risk assessment and monitored to ensure that audit activities are carried out as planned.

5: Reporting and audit issues tracking need to be improved

Internal audit reporting content and format needs to be improved. Previous audit objections need to be settled and undertake steps to stop repetition

G) Risk Management:

Page 77 of 81

1: Establish an appropriate risk environment within the Bank

Rigorously apply the BBs fit and proper guidelines in appointing directors to the Board, which should establish a code of ethical governance and define its risk management responsibilities. Constitute a risk organization oversee its policies and procedures, particularly in the five core banking areas (Credit, Asset-Liability, Foreign Exchange, AntiMoney Laundering, and Internal control & Compliance)

2: Address the Five Top Risks from the diagnostic report

Reduce the net financing losses in core lending operations by strengthening credit appraisal & administration through: certification (training) programs for risk-taking staff, stringent screening processes, and centralized administration and disbursement controls Minimize if not reduce the capital deficit through NPL recovery & highly selective lending The Banks identity and future direction as a government-owned bank should be clarified, particularly with regard to allocating its resources to sunset/problematic industries. Address the Banks inefficiency & low productivity by implementing the work stream recommendations & measuring performance against the most productive private banks; and prepare options for funding pension costs over the mediumand long-term Invest in extensive staff training for re-learning banking basics.

H) Resistance of organizational Change

The reasons for resistance to change efforts are many and vary with the circumstances. We show in the following reason: Employees perceive possibility of loss of position or status In equitable treatment The loss of use of present competencies

Page 78 of 81 They have experienced duplicity futile extra work in past change efforts Management should reassure people as clearly as possible Establishing realistic expectations about the pains and challenges No substitute is available for experiential discovery by organizational members OD efforts result in Enhanced morale Improved communications More mutual influence and

Improved organizational effectiveness In general, OD practitioners have a major role in recommending participative/influence processes that will minimize unneeded resistance.

I) Management of organizational change

1. Key Initiatives
The recommendations of the Pwc MAT are proved in detail below in the LTMP summarized here are the broad direction and some key initiatives for each advisory area.

Steps should be taken for fair presentation of the financial statements

Necessary provisions need to be made in the accounts against bad The inconsistencies which are in existence in the accounts should be rectified. assets(significant steps already taken) and unrealizable balance should be written off

Internal control system should be more strengthened

All sorts of reconciliation including inter branch transactions need to be reconciled in time. Various subsidiary records and registers such as fixed assets register, need to be maintained with sufficient information.

Page 79 of 81

1. Findings: Regarding the existing system change & development of the organization.
All organizational changes & development programs have three basic components: i) ii) iii) Diagnosis: The diagnostic component represents a continuous collection of data about the total system, its subunits, its processes, and its culture. Action: The action component consists of all the activities and interventions designed to improve the organizations functioning. Program management: The program management component encompasses all activities designed to ensure success of the program.

The End

Page 80 of 81

REFERENCES:
To complete this report, I took help of some written materials as references. Those are mentioned as follows:
Published Annual reports of Agrani Bank Limited 2004,2005,2006 &2007. Statement of Affairs of Agrani Bank Limited -2007 Executive summery to the Long Term Management Program(LTMP) Produced by Management Advisory Team(MAT) PricewaterhouseCoopers(PwC) Credit Risk Management Policy (A Publication of Agrani Bank Limited) Journals, manuals on banking performance. Economic Newsletter (A Quarterly publication of Agrani Bank Limited ) Monthly Journal of Bangladesh Institute of Bank Management ( BIBM) Lecture Module of introduction to HRM by MS. Tahanyat Ahmed Karim. Website of Southest University Website of Agrani Bank Limited . Website of Bangladesh Bank. Newspapers and Other relevant documents booklets & publications of Agrani Bank Limited and BIBM. 1st Nurul Matin Memorial Spech- Prof. Rehman Sobhan, BIBM publication. 2nd Nurul Matin Memorial Spech- Justice Habibur Rahman, Ex- Honourable Chief Advisor to Caretaker Government of the Peoples Republic of Bangladesh. BIBM publication. 3rd Nurul Matin Memorial Spech- Justice Sahabuddin Ahmed, Ex-honourable President of the Peoples Republic of Bangladesh. BIBM publication. Compensation Management in a Knowledge-based World (Ninth edition)- Richard I. Hendersion. Prof. Emeritus, Georgia State University, USA. Job Evaluation Method (2nd edition)- Charles W. Lytle. Industrial Relations- Conceptual & Legal Framework A.M Sarma, 18th edition-2004.

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Human Relations at work- K Davis. Business for the 21th Century-Steven J.Skinner & John M.Ivancevich-11thedition-2003 Compensation Management in a Knowledge-based World (Ninth edition)- Richard I. Hendersion. Prof. Emeritus, Georgia State University, USA. Job Evaluation Method (2nd edition)- Charles W. Lytle. Bass, B.M(1998), Transformational Leadership; Industrial, Military and Educational Impact, NJ: Lawrence Elbaum Associates Publishers, pp. 174-179. Brass, D.J, and M.E.Burkhardt (1993), Potential power and power use: An Investigation of Structure and Behivior , Academy of Management Journal-USA. PP 36(3), 441-470. Buchanan, B (1974), Building Organizational Commitment: The Socialization of Managers in Work Organization, Administrative Quarterly,19,533-546. Byars, L.L.(1987), Strategic Management, New York: Harperand Row, p. 159. Ciampa, D. (1992), Total Quality: A Users Guide for Implementation, Reading, Mass: Addison-Wesley, 113-114. Dahl, R.A.(1957), The Concept of Power, Behavioral Science,2, 201-218. Heifetz, R.A.(1994), Leadership Without Easy Answers, Cambridge, MA: Belknap Press. Hersey, P. and K. H. Blanchard(1988), Management and Organizational Behavior, Englewood Cliffs, New Jersey: Prentice Hall Inc, 180. Mannan, M. (2001), Top Management Commitment and Dynamic Leadership: A Human Resource Imperative for Total Quality Management, Readings in Management, 1(1). Hassan, Kabir(1995), Banking and Finance: A Collection fo Essays, Dhaka: Academic Publishers. Centre for Policy Dialogue(CPD)(2004), Business Competitiveness Environment in Bangladesh, Dhaka: CPD. Bangladesh Bureau of Statistics(BBS) (1993), Twenty Years of National Accounting of Bangladesh, Dhaka:BBS. Bangladesh Bank Annul Report-2006 & 2007.