Professional Documents
Culture Documents
2012
04
Contents
Online Banking 110
Newsletter 116
Acknowledgements 129
Zones 313
06
Graphs
Presentation of Performance 22
Operating Profit 22
Deposit 22
Shareholders’ Equity 23
Highlights of 2012 28
Capital Growth 38
Asset Portfolio 80
Investment 2012 86
Sector-wise Position of Loans 87
08
Corporate Profile
As on 31.12. 2012
Legal Status Public Limited Company (governed by the Bank Companies Act 1991)
Branches 889
Subsidiary Companies 6
SWIFT AGBKBDDH
Website www.agranibank.org
Mission
To operate ethically and fairly within the stringent
framework set by our regulators and to assimilate ideas
and lessons from best practices to improve our business
policies and procedures to the benefit of our customers
and employees.
Motto
To adopt and adapt modern approaches to stand supreme
in the banking arena of Bangladesh with global presence.
Values
We value in integrity, transparency, accountability, dignity,
diversity, growth and professionalism to provide high level
of service to all our customers and stakeholders inside and
outside the country.
10
Strategic Objectives
1. Winning at least 6.50 percent share of deposits and 5.50 percent
share of loans and advances of Bangladeshi market.
2. Gaining competitive advantages by lowering overall cost compared to
that of competitors.
3. Overtaking competitors by providing quality customer service.
4. Achieving technological leadership among the peer group.
5. Strengthening the Bank’s brand recognition.
6. Contributing towards the economic well-being of the country by
focusing particularly on SME and agricultural sectors.
7. Strengthening research capability for innovative products and
services.
Ethical Standards
1. Be Trustworthy: We believe in mutual trust and treat our customers
in a way so that they can trust us.
2. Keep an Open Mind: For continuous improvement of our Bank we
keep our minds open to new ideas. We seek opinions and feedback
from both customers and team members through which our Bank will
continue to grow.
3. Meet Obligations: Regardless of the circumstances, we do everything to gain the trust and
confidence of customers and clients by honoring our commitments and obligations.
4. Be Transparent: We are transparent in our dealings with customers and all stakeholders. We ensure
transparency by furnishing information through print and electronic media as well as in Bank’s website,
journals and reports.
5. Be involved with the Community: We remain involved in community-related issues and activities,
thereby demonstrating that our business is socially responsible.
6. Be Respectful: We treat all stakeholders with utmost respect and courtesy regardless of differences,
positions, titles, ages, or other types of distinctions.
7. Be Environment Conscious: We provide industrial financing decorously to keep the environment
free from pollution and health hazard. We also ensure setting up ETP before installation of industries
that may affect the environment. We are pro-active and foresighted for green office and green
economy.
Agenda
1. To approve the minutes of the 5th Annual General Meeting held on 26th
July 2012.
2. To receive, consider and adopt the Audited Financial Statements of the
Bank for the year ended 31 December 2012 together with the Report of the
Directors’ and the Auditors’ Report thereon.
3. To elect /re-elect Directors.
4. To appoint Auditors for the year 2013 and to fix their remuneration.
5. To transact any other related business with the permission of the Chair.
12
Letter of
Transmittal
To
All shareholders
Registrar of Joint Stock Companies & Firms
Securities and Exchange Commission
Dhaka.
Yours sincerely
Directors
Arastoo Khan
Additional Secretary, ERD
Ministry of Finance
Government of the People’s Republic of Bangladesh Prof. Dr. Md. Abdur Rouf Sardar
Director
A.K. Gulam Kibria, FCA Bangladesh Medical College Hospital
Senior Partner
G.Kibria & Co., Chartered Accountants Shameem Ahsan
IT Specialist and Entrepreneur
Engineer Md. Abdus Sabur
Engineer and Industrialist Md. Altaf Hossain Molla
DIG (Rtd.)
K.M.N. Manjurul Hoque Lablu
Chief Editor & Managing Director A B M Kamarul Islam
Global News Agency Joint Secretary (Rtd.)
Company Secretary
Badal Chandra Dey
14
Board of
Directors
Arastoo Khan A K Gulam Kibria, FCA Engineer Md. Abdus Sabur K M N Manjurul Hoque Lablu
Director Director Director Diretor
Niaz Rahim Advocate Balaram Podder Prof. Dr. Md. Abdur Rouf Sardar Shameem Ahsan
Director Director Director Director
Md. Altaf Hossain Molla A B M Kamarul Islam Hasina Newaaz Syed Abdul Hamid, Phd, FCA
Director Director Director Managing Director & CEO
Auditors
ACNABIN Howladar Yunus & Co.
Chartered Accountants Chartered Accountants
BDBL Bhaban (13th Floor) 67 Dilkusha C/A (2nd Floor)
12 Kawran Bazar C/A, Dhaka 1215 Dhaka 1000
16
Management
Team
Md.Obayed Ullah Al Masud Mohammad Shams-Ul-Islam A. K. M. Mujibur Rahman Muhammad Awal Khan
General Managers
Mizanur Rahman Khan Md. Nurul Haque Bhanu Roy Chowdhury Mohammad Jalal Uddin
Haradhan Chandra Das A. A Md. Shajahan Md. Nazrul Islam Farazi Md. Shahidullah
Badal Chandra Dey Hamidur Rahman Mobarak Hossain Md. Rafiqul Alam
Md. Moshiur Ali Md. Ali Hossain Prodhania Kalpana Saha Md. Delowar Hossain
General Managers
Mizanur Rahman Khan
Md. Nurul Haque
Bhanu Roy Chowdhury
Mohammad Jalal Uddin
Haradhan Chandra Das
A. A. Md. Shajahan
Md. Nazrul Islam Farazi
Md. Shahidullah
Badal Chandra Dey
Hamidur Rahman
Mobarak Hossain
Md. Rafiqul Alam
Md. Moshiur Ali
Md. Ali Hossain Prodhania
Kalpana Saha
Md. Delowar Hossain
18
Deputy General Managers
A. S. M. Waliullah Md. Rezaul Karim S. M. Babul Islam
Tazrina Ferdausi Md. Khorshed Alam Md. Akhtarul Alam
Md. Mozammel Hoque Md. Sharif Ullah Sk. Md. Kamruzzaman
Md. Aminul Islam Mrs. Rokeya Afroza Md. Ismail Hossain
Dr. Md. Emdadul Haque Md. Habibur Rahman Mohammed Shawkat Ali
Sahida Akhtar Md. Liakat Ali Abu Bakar Khan
Md. Rezaul Karim Md. Akram Hossain Md. Benazir Kamal
Kazi Alamgir Md. Wali Ullah Hazera Khatun
Md. Yusuf Ali Jahar Lal Roy Syed Abdur Rahim
Md. Mustafa Kamal Bhuiyan Md. Abul Basar Serneabad Md. Abdur Rahim
Shamsuzzaman Tapash Kumar Das Gupta Md. Habibul Alam
Pankaj Roy Chowdhury Md. Abul Hashem Md. Abdus Salam Miah
Md. Nazrul Islam Sk. Abdul Kader Md. Anwarul Islam
Md. Ruhul Amin Israt Ara Md. Nasir Uddin
Md. Kamruzzaman Shukanti Bikash Shanyal Azizul Kabir
Md. Serajul Islam Shekhar Chandra Biswas Kanai Lal Mali
Borhan Uddin Farook Ahmed Md. Hasan Suhrawardy Md. Abdur Rashid
Md. Showket Islam Md. Faruqe Ahmed Md. Nazmul Haque
Md. Nurul Amin Md. Abdul Gafur Md. Abdus Salam Molla
Md. Harmuz Miah Md. Sanowar Hossain Md. Jahangir Mondal
Md. Kamruzzaman Md. Hafizur Rahman Muhammad Golam Mustafa
A.B.M. Khalequzzaman Md. Nurul Islam Sabbir Ahmed Chowdhury
Md. Nurul Absar Md. Wahiduzzaman A. B. M Abdul Mobin
Md. Anisur Rahman Tuheen Alam Pratima Kundu
Md. Shafiqur Rahman Sadique Md. Monirul Islam Md. Zakir Hossain Khan
Md. Golam Kabir Selina Zaman Md. Hemayet Hossain
S.M. Nurul Ahsan Belayet Hossain Md. Kazi Omar Faruque
Md. Abdus Sattar A. M. Abid Hossain Md. Amirul Islam
Babul Kumar Saha Roy Md. Lutfor Rahman Zakia Begum
Md. Abdul Haque Mahmudul Ameen Masud Md. Abdul Gafur
Shirin Akhter Bimalendra Saha Tapash Sarker
Selina Akhter Arajit Kumar Das Md. Fazle Halim
M. Habibur Rahman Zahiruddin Khan Md. Lutfar Rahman Sikder
Md. Abu Anis Sultan Mamun Shahreen Akhter Ashok Kumar Saha
20
Five Years'
Performance at a Glance
Taka in crore
Particulars 2012 2011 2010 2009 2008
Capital Measures (As per Basel II)
Total Risk Weighted Assets 21,455 21,411 19,326 12,052 8,051
Core Capital (Tier-I) (1,320) 1,688 1,163 710 599
Supplementary Capital (Tier-II) - 665 616 281 138
Total Capital (1,320) 2,353 1,779 991 737
Tier-I Capital Ratio (6%) 8% 6% 6% 7%
Tier-II Capital Ratio - 3% 3% 2% 2%
Total Capital Ratio (6%) 11% 9% 8% 9%
Credit Quality
Non-Performing Loans (NPLs) 5,380 2,149 2,102 2,374 2,549
Provision for Unclassified Loans 254 293 230 131 116
Provision for Classified Loans 3,212 942 834 1,056 1,037
Share Information
No. of Shares Outstanding 9,91,29,404 9,01,17,640 5,46,52,400 4,96,84,000 2,48,42,000
No. of Shareholders 12 12 12 12 11
Dividend - Bonus Share - 10% 10% 10% 100%
Net Asset Value per Share (Taka) 72 288 288 230 258
1,474
1,086
1,007
633
644
2008 2009 2010 2011 2012
230
72
29,243
25,221
20,633
16,628
14,681
17,065
14,683
10,345
9,511
22
Graphical Presentation
of Performance
Shareholders’ Equity Crore Taka
2,594
1,572
1,144
717
642
2008 2009 2010 2011 2012
54.77
55.34
1,311
1,058
1,002
624
543
2,374
2,149
2,102
Paid-up capital increased to Tk. 991.29 crore in 2012 from Tk. 901 crore in 2011.
24
Chairman’s
Message
Deposits
Tk. 29,243 crore Operating Profit
Tk. 1,007 crore
Number of
Branches 889
Number of Foreign
Correspondents 429
Number of
Employees
13,890 Equity
Tk. 717 crore
Foreign Remittance
Tk. 11,681 crore
28
Managing ABL has the motto for breathing ethical
banking in every sphere of business.
Director & In fact, banking is a long term business
CEO’s which is based on trust.
Round Up Each of our staff-member is highly
concerned to boost the trust of all
of our customers and stakeholders.
Dividend Distribution
i) 100% stock dividend i.e. 1 bonus share for every 1 share for the year 2008.
ii) 10% Stock dividend i.e. 1 bonus share for every 10 shares for the year 2009.
iii) 10% Stock dividend i.e. 1 bonus share for every 10 shares for the year 2010.
iv) 10% Stock dividend i.e. 1 bonus share for every 10 shares for the year 2011.
32
Annual
General Meetings
34
Financial
Highlights
Dividend ratios
SI. No. 2012 2011
1 Stock dividend - 10%
Note:
1. Since ABL is not a listed company, its market price per share is not available. So, P/E
ratio of the Bank could not be provided.
2. Last year's figures rearranged wherever necessary.
36
Graphical Presentation of
Key Financial Information
79.13
54.07 Deposits
77.21
76.95
73.51
72.72
30.53
Loans & Advances Matrix 2012 Crore Taka Total Classified Loans (%)
Overdrafts
1,367 Bills Purchased &
Discounted
25.30
565
22.48
19.42
12.88
11.07
Loans Cash Credit
1,3845 5,489
Net Classified Loans to Net Loans (%) Constituent of Assets 2012 Crore Taka
21266
7.61
9242
3358
2867
1138
4.79
4.69
4.22
3.44
es
ts
ts
nc
ts
et
se
en
se
va
s
As
m
As
Ad
As
d
ve
s&
er
xe
i
qu
In
th
Fi
an
Li
O
Lo
1,123
1,138
544
288
253
2,594
1,572
717
2010 2011 2012
Growth of Advances 2012 (%)
16.24
9.57
National Agrani
Growth of Deposits 2012 (%)
20.04
15.95
National Agrani
38
Maintaining Capital Adequacy
Bank’s capital adequacy was constrained during the year due to(i) issuance of Bond by the Government against
BPC, (ii) non-payment of LTR liability of some importing customers of food, raw cotton and fertilizer, (iii)
expansion of credit especially on power sector, (iv) increase of interest cost on deposit of Tk. 794 crore, (v)
introduction of new classification rules of Bangladesh Bank taking into consideration the international norms as
per agreement with the IMF. Consequently, classified loans and required provisions have increased to a large
extent. It has reduced profitability which adversely affected capital adequacy. However, we are expecting
improvement in regards to classified loan, required provision as well as capital adequacy in the coming future.
iii) Resident Foreign Currency Deposit (RFCD) A/C d) Small and Medium Enterprise Loan
40
Products and
Services
x) Other Investments
e) Import Finance
ii) Loan against Trust Receipt (LTR) i) Selling Foreign Currency for Import Payment
iii) Payment against Document (PAD) ii) Buying Foreign Currency against Export
Proceeds
f) Export Finance
iii) Fixation of Exchange Rate
i) Export Cash Credit
iv) Foreign Currency Buying and Selling
ii) Packing Credit (PC)
v) SWAP Transactions
iii) Local / Foreign Bills Purchased (FBP)
vi) Forward Transaction
iv) Loan against Export Development Fund (EDF)
vii) Term Placement
v) Advance against Cash Incentive (Subsidy,
Assistance) 4. Letter of Credit
42
Risk
Management
ABL has an independent division named ‘Core Risk In ABL a thorough assessment of risk is done before
Management & Basel-II Implementation Division’. This granting or extending credit and a plan in this regard is
Division collects data from other divisions monthly, worked out. The Bank has segregated duties among the
quarterly, half yearly or yearly as available. Then findings officers and executives involved in credit related activities.
of the segments are discussed in monthly meeting of The total team works accordingly. ABL has a system of
the division chaired by the CEO& MD of the Bank. If any tracking risky and potentially weak loan accounts. Bank
deviation or deterioration is found, immediate corrective has dedicated teams to monitor and supervise them.
measures are taken. Bangladesh Bank, as a regulatory Respective assigned person promptly reports to delegated
body, has prescribed format to reflect Bank’s total scenario. authority to take measure so that the loan may not be
ABL complies with the directives & submit to concerned downgraded and hindered the assets portfolio of the bank.
department of Bangladesh Bank. To co-ordinate with higher management and field level,
44
Risk
Credit Risk ALM Risk ML Risk Forex. Risk ICC Risk ICT Risk
Recovery Division is assigned to monitor and report the meet obligations in time when they become due without
NPLs status. This division chalks out plans to recover incurring unacceptable losses. Liquidity risk arises as a
classified loans including write-off loans. It reviews progress result of mismatch during the time of cash flows. When a
quarterly and reports to the higher management. The bank does not have sufficient financial resources to meet
bank determines the forced sale value (FSV) of collaterals its obligations and commitments, as they fall due, then
held against credits. Collaterals are segregated into (i) the bank makes its payment at an excessive cost. Infact,
Financial and (ii) Physical collateral. The objective of credit liquidity risk is considered a major risk for Banks.
risk management is to bring back lended money safely and
strengthen the bank as well as national economy. The objective of liquidity risk management is to ensure
that all foreseeable funding commitments and deposit
Credit Risk Assessment withdrawals can be met when due. Considering all these
To extend credit facilities ABL takes qualitative and factors Agrani Bank Limited has established an effective
quantitative measure for the viability of the proposed ALM process, which performs the followings:
project. By the option ‘qualitative’ means person’s financial
and business deal, commitment and viability of the project • Maintain required /adequate liquidity at all times.
in the context of national economy. On the other hand • Maintain diversified and stable funding base
‘quantitative’ means the part that can be numerically comprising of core, retail, corporate and
assessed. Credit risk is hedged or mitigated with following institutional deposits.
tools and mechanisms:
• Leverage the negative correlation between
a) Proper documentation: After receiving a credit liquidity and profitability without taking any
proposal, relevant papers to be asked from the excessive risk.
counter party and fill up them properly. On the
other hand, some prescribed forms are also • To meet short term cash flow demands through
supplied in which terms and conditions in line with asset maturities and customer deposits.
Bank’s internal and other regulatory body’s policy • Trading risk management.
are reflected. After examining by both ends, the
bank and the counterparty reach to an agreement. • Regulatory compliance.
b) Collateral: Collateral offered is the main tool to Bank's overall liquidity risk management function is carried
mitigate future credit risk. So collateral offered out by its Treasury Division. To maintain the activities, ABL
against credit facility is properly valued and has Asset-Liability Committee (ALCOM) headed by MD &
verified by the concerned officer/manager and CEO and comprises senior management members from
revalued and re-verified by the enlisted surveyor key areas of the bank under approved policy guidelines.
of the bank. If found satisfactory in terms of ABL follows a standard practice to conduct ALCOM
economic consideration and easily transferable in meeting at least once in a month. On its monthly meeting,
Bank’s favor, then collateral is acceptable. the ALCOM takes necessary action regarding liquidity
based on historical requirements, current liquidity position,
c) Insurance coverage: To address future risk anticipated future funding requirement, sources of fund,
on collateral, adequate insurance coverage is options for reducing funding need, present and future
ascertained. Customers’ desire for not taking earning capacity, present and planned capital position,
required insurance policy must be considered as market interest rate, maturity gap analysis etc. Decisions
deviation. taken in the ALCOM meetings are duly recorded and
action plans are developed and implemented accordingly
d) Syndicated loans: Syndicated loans are to optimize the financial performance of the bank.
assessed independently by ABL. If its quality,
returns and risks are not acceptable, ABL does 3. Money Laundering Risk
not depend only on lead arranger’s report. Money laundering is the process by which large amount of
illegally obtained money is given the appearance of having
2. Asset-Liability Management Risk originated from a legitimate source. Money laundering
Asset-liability risk or liquidity risk is the risk of a bank’s refers to a financial transaction that aims to conceal the
earnings as well as capital which arises from inability to identity, source, and destination of illicitly-obtained money.
b) Customer Identification Procedure: ABL has a A comprehensive foreign exchange risk management
unique customer Identification procedure such as program requires establishing and implementing sound
a new customer must be verified by a bonafide and prudent foreign exchange risk management policies,
customer. Concerned bank officer also justifies developing and implementing appropriate and effective
his/her objective before establishing relationship exchange rate management and control procedure. The
with the bank. responsibility of managing foreign exchange risk rests with
the Treasury Division of the bank. Treasury Division always
c) Monitoring of Transactions: To reduce risk, monitors the market scenario of risk and manages the
effective KYC procedure is maintained for foreign exchange operations in such a way that earnings
continuous monitoring of our customer transaction are not hampered against any adverse movement in
and their normal behavior. market prices. To address the issue, all foreign exchange
activities have been segregated into Front Office which
d) Risk Management: ABL maintains internal is responsible for currency transactions, Mid Office
audit and compliance functions to reduce money which deals verification & limit monitoring & Back Office
laundering risk. which deals settlement of transactions. These offices
have separate and independent reporting lines to ensure
ii) Cash Transaction Report (CTR): ABL sends Cash minimization of risk.
Transaction Report (CTR) to the Bangladesh Bank in every
month for the customers’ depositing or withdrawing cash Agrani Bank Limited has formulated policies and
above Tk 1.00 million in any day at any of its branches. manuals with a view to reducing the foreign exchange
risk. Treasury division of the bank manages and controls
iii) Suspicious Transaction Report (STR): ABL also day-to-day trading activities under the supervision of
reports to the Bangladesh Bank on Suspicious Transaction ALCOM that ensures continuous monitoring of the level of
as and when it is identified. assumed risks. In ABL, FOREX risk is minimal as all the
transactions are carried out on behalf of the customers,
iv) Transaction Profile (TP): In TP every customer must i.e. foreign exchange trading exposures are principally
specify the types, probable frequency and amount of derived from customers driven transactions. All Foreign
transactions of his account. exchange transactions are revalued at mark-to-market
method according to Bangladesh Bank’s guidelines. All
v) Data Update: Once validated, profiles are periodically Nostro accounts are reconciled on 15 days basis .The
updated as soon as there is a change; whether it’s a management reviews outstanding entry beyond 15 days
change of address or the addition of a new relationship/ for settlement purpose.
information to the profile.
The Bank has an accounting procedure and management
vi) Guideline: ABL has its own policy guidelines on money information system to measure and monitor foreign
laundering prevention and combating the financing of exchange position, foreign exchange gains or losses and
terrorism approved by the Board. foreign exchange risks. Besides, these are independently
inspected and audited.
vii) Training: Regular training is being given to employees
to update their knowledge and to make them aware of their 5. Internal Control and Compliance Risk
responsibilities in combating against money laundering Banking function entails high risk. Effective internal control
and terrorism financing risk on the bank’s part. and compliance system, efficient corporate governance,
transparency and accountability are very important for
viii) CAMLCO and BAMLCO: ABL has its CAMLCO and the banking sector worldwide. Internal control system
BAMLCO to ensure regular monitoring, compliance and identifies the risk in the process, adopts mitigation
46
measures and ensures compliance thereof. Current committee ensures that the effective measures are taken
or prospective compliance risk to earnings and capital by the management if any deficiency or lapse is found in the
arises from violation or non-compliance with laws, rules, internal control system. The committee evaluates whether
regulations, agreements, prescribed practices or ethical management is setting the appropriate compliance culture
standards, as well as from the incorrect interpretation by communicating the importance of internal control to
of laws and regulations. Proper internal control system ensure that, all employees of the bank have understood
integrates compliance risk management into overall risk their roles and responsibilities.
management process.
6. Information and Communication Technology Risk
Internal control and compliance is a management process We are living in an era of ICT. Banks have become more
designed to achieve: technology driven these days. Uses of computer and
• Effective system of control internet have become inseparable phenomenon in the
• Effectiveness and efficiency of operations banking industry. There are certain risks involved in the
use of information and communication technology. This
• Reliability of financial reporting risk may arise from malfunctioning of the system, failure
• Compliance with applicable laws and regulations of network, lack of knowledge about the use of technology,
• Safeguard of assets virus attack, hacking etc.
Internal control consists of five interrelated components, Agrani Bank Limited has initiated various measures to
which are: address and to minimize Information and Communication
Technology risks. ABL has formulated ICT policy following
i) Control Environment
the ICT Security Guidelines of Bangladesh Bank which is
ii) Risk Assessment approved by the Board of Directors. ABL has an ICT audit
iii) Control Activities and security management team formed as per the Central
iv) Information and Communication Bank’s Guidelines. The Bank formulated job description,
job specification and roster duty for each individual within
v) Monitoring
IT & MIS Division for smooth running of business and to
avoid risk. Employees are given adequate training on
To assess the business risk as well as control risk
aspects of sensitive ICT tasks. The Bank has established
associated with the branches, Bank has been implementing
a secured environment for data processing. ABL has
‘Risk Based Internal Audit (RBIA)’ in the daily activities
established priority based information systems to protect
of the Bank in light of core risk factors. The Bank has
data. It has also taken steps to secure data by keeping
already brought out its internal control manual to set out a
backup at an international standard Disaster Recovery
strong internal control framework within the organization,
Center (DRC). ABL has introduced Core Banking Software
which focuses on monitoring the functioning of various
‘TEMENOS T24’ for online banking operations. Some
departments/divisions of Head Office and branches on
other customized software have also been introduced to
regular basis. Internal Control and Compliance Division
bring out the overall banking transactions of the bank in
(ICC) reviews Departmental Control Function Checklist
line with the online banking.
(DCFCL), Loan Documentation Checklist (LDCL) and
Quarterly Operations Report (QOR) of the branches
In addition, the Bank also manages the risk, taking into
regularly to ensure internal control process of the bank.
consideration the reputation risk, liquidity risk, operational
risk, market risk, credit concentration risk, interest rate risk,
Comprehensive audit and inspection is being carried out on
settlement risk, environmental and climate risk, residual
regular basis in ensuring internal control and compliance.
risk and equity price risk which are elaborated below:
Each year the Audit & Inspection Division sets out an
audit plan (internal) for the year which is approved by the
Board Audit Committee. The Audit & Inspection Division a) Reputation Risk
submits reports to ICC Division after completion of audit Reputation risk arises from negative publicity about which
and inspection. The ICC Division places a summary report the Bank is always alert.
on audit findings to the Audit Committee for information
and necessary suggestions. b) Liquidity Risk
The Bank is capable of managing the liquidity risk to
Utmost importance is given to the audit report and ensure that all foreseeable funding commitments and
suggestions of the auditors. Bank takes corrective deposits withdrawals can be met when due.
actions regarding the lapses mentioned in the report.
During 2012 the Board Audit Committee conducted 14 c) Operational Risk
meetings in which various audit and inspection reports, The Bank ensures quick and proper management
appropriateness of internal control and compliance, of operational risk which may arise from fraud, error,
policy guidelines etc. were reviewed and evaluated and omission, unauthorized activities, inefficiency, system
necessary instructions and guidelines were provided. The failure from external events.
48
Annual Report 2012 49
Disclosure under Basel-II
Qualitative and Quantitative Disclosures
Under Pillar-3 of Risk Based Capital Adequacy
as of 31st December 2012
The Basel Committee on Banking Supervision published a framework for international convergence of capital measurement
and capital standards commonly termed as Basel II replacing the previous rules under 1988 Basel I accord.
In Bangladesh, Risk Based Capital Adequacy for Banks’ (Revised regulatory capital framework in line with Basel II) came
into effect fully from January 2010 following the BRPD circular # 20 Dated- December 29, 2009 after parallel run with
Basel I during the year 2009.
Agrani Bank believes that Basel II is not merely a reporting system but a principle on which overall banking business
runs. With a view to facilitating smooth implementation, the Bank has formed a high powered committee. This committee
forecast the future follow up of the overall implementation status and way out the probable solution to cope with the
international best practices and to make the bank’s capital more risk sensitive as well as more shock resilient. The Bank
has also formed a Supervisory Review Process (SRP) team to participate the dialogue with the Supervisory Review
Evaluation Process (SREP) team of BB in respect to assessment of the adequate capital requirement.
Minimum Capital Requirement (MCR) that needs to be maintained by banks to cover credit, market and operational risk
as a regulatory requirement.
3 pillars of Basel II
Pillar 1 Pillar 2 Pillar 3
Risk Weighted
Assets Capital
Core
Operational Capital Supplementary
Credit Risk Market Risk Capital
Risk
Standardized IRB Advanced IRB Standardized Models Additional
Approach Approach Approach Approach Approach Supplementary
Capital
50
The guidelines have been devised to make the regulatory requirements more appropriate and also to assist the banks
to follow the instructions more efficiently for smooth implementation of the Basel II framework in the banking sector. The
major highlights of the Bangladesh Bank regulations in this regards are:
a) To maintain capital adequacy ratio (CAR) at a minimum of 10 percent of Risk Weighted Assets.
b) To adopt the Standardized Approach for credit risk in relation to implementation of Basel II.
c) To adopt Standardized (Rule Based) Approach for market risk.
d) To adopt Basic Indicator Approach for operational risk.
e) To submit the returns to Bangladesh Bank on a quarterly basis.
Disclosure Framework
The general qualitative disclosure requirements are as follows:
For each Separate risk area (e.g. credit, operational, market, banking book interest rate risk, equity) banks must describe
their risk management objectives and policies, including:
i) Scope of application
ii) Capital structure
iii) Capital adequacy
iv) Credit Risk
v) Equities: disclosures for banking book positions
vi) Interest rate risk in the banking book (IRRBB)
vii) Market risk
viii) Operational risk
1. Scope of application
Qualitative Disclosures
a) The name of the top corporate entity in the group to which this guideline applies is Agrani Bank Limited.
b) An outline of differences on the basis of consolidation for accounting and regulatory purposes, with a brief
description of the entities within the group:
The investments in the following 6 subsidiary companies have been deducted in full i.e, at 50% of core
capital and 50% of supplementary capital of ABL on Solo basis.
3) That is neither Solo nor deducted (e.g. where the investment is risk- weighted).
The accounts of the ABL’s above mentioned subsidiary companies have been consolidated. However,
the investments in these subsidiaries have not been deducted from the capital of ABL.
52
c) Any restrictions or other major impediments on transfer of funds or regulatory capital within the
group.
d) Quantitative Disclosures
Since the Capital requirement of ABL has been arrived at both on Solo & Consolidated basis as such
capital requirement of following subsidiaries have not been assessed:
2. Capital structure
Qualitative Disclosures
a) As per the RBCA Guidelines each bank has to maintain CAR on Consolidated basis or solo basis as per instructions
given by Bangladesh Bank from time to time. The minimum CAR for the year ended December 31, 2012 was 10%. The
regulatory capital under Basel-II is composed of (i) Core Capital (Tier-1), (ii) Supplementary Capital (Tier-2) and (iii)
Additional Supplementary Capital (Tier-3) {only for market risk}.
Tier-1 Capital comprises of paid up Capital, Statutory Reserve, General Reserve and Retained Earnings.
Tier-2 Capital consists of General Provision, Asset Revaluation Reserve and Revaluation Reserve for Securities.
Quantitative Disclosures
(Taka in crore)
(b)The amount of Tier-1 capital, with separate disclosure is Solo Consolidated
Paid up capital 991.29 991.29
Non-repayable share premium account 0.00 0.00
Statutory reserve 413.98 414.55
General reserve 0.50 5.97
Retained earnings (1,454.35) (1,497.18)
Minority interest in subsidiaries 0.00 0.00
Non-cumulative irredeemable preference shares 0.00 0.00
Dividend equalization account 0.00 0.00
Other (if any item approved by BB) 0.00 0.00
Total amount of Tier-I Capital (48.58) (85.37)
c) The total amount of Tier-2 and Tier-3 capital. 0.00 0.00
d) Deductions from Tier-1 & Tier-2 capital. 1,270.96 1140.19
e) Total eligible capital. (1,319.54) (1,225.56)
3. Capital Adequacy
Qualitative Disclosures
a) Assessment of Capital adequacy is carried out in conjunction with the Capital Adequacy reporting to the Bangladesh
Bank and the approaches were pursued to calculate Minimum Capital Requirement are (1) Credit Risk- Standardized
Approach (SA), (2) Market Risk-Standardized (Rule Based) Approach (SA) and (3) Operational Risk -Basic indicator
Approach(BIA)
4. Credit Risk
Qualitative Disclosures
a) Credit risk is the risk of financial loss resulting from failure of a client or counter party to meet its contractual obligations
to the Bank. Bank is exposed to credit risk from its dealing with or lending to corporate, individuals, and other banks
or financial institutions. As regards capital charge for Credit Risk, all assets in Banking Book have been risk-weighted
strictly based on pre-specified weight as fixed by Bangladesh Bank as per RBCA guidelines. However, the Bank has
conducted proper mapping with the grading of Bangladesh Bank for those exposures or claims graded by External Credit
Assessment Institution (ECAI).
• Definitions of past due and impaired (for accounting purposes).
• Any claim or exposure that has been overdue for 90 days or more is called past and impaired loan in accordance with
the definition given by Bangladesh Bank as per section-5(CC) of the ‘Bank Companies Act, 1991.
• Description of approaches followed for specific and general allowances and statistical methods.
• The Bank has been following Standardized Approach for assessing the requirement of Capital charge against Credit
Risk. The methodology used for this approach is to rate the exposures by the External credit Assessment Institution
(ECAI).
• Discussion on the bank’s credit risk management policy:
Considering the key elements of credit risk, the bank has established Credit Risk Management framework in line
with the Bank Credit Risk Management (CRM) policy guideline and the Credit Risk Grading (CRG) system. This
framework defines CRM structure, role, responsibilities and the processes to identify, quantify, and manage risk
under the given policy. The CRM policy is reviewed from time to time for adoption of new techniques, policies for
measurement and management of risks in line with the socioeconomic scenario and investment environment of the
country.
ABL’s credit policy is based on the customers’ need for their business and security, earning capacity of borrower, the
repayment capability of the business, and the value of collateral.
The Credit policy of the bank is focused on the economic goal of the country and policies adopted by the Government. It
strives towards the materialization of the Government policies leading to overall economic development of the country.
The policy stresses the need to give special attention to problem loans and to initiate appropriate action to protect the
Bank’s interest on a timely basis.
ABL strictly adheres to the regulatory policies; a rule etc. as regard to credit management and is in compliance with
regulatory requirements as stipulated by Bangladesh Bank from time to time.
The objective of credit risk management is to minimize the different dimension of risks associated with credit exposures
and to maintain credit risk profile of the bank within a tolerable range.
Quantitative Disclosures
b) Total (gross) Credit Risk Exposure broken down by major types of credit exposure is furnished below:
(Taka in crore)
Solo Consolidated
Funded 30,954.37 30,800.62
Non Funded 1,741.56 1,741.56
Total 32,695.93 32,542.18
54
c) Geographical distribution of exposures, broken down to significant areas by major types of credit exposure.
d) Industry or counterparty type distribution of exposures, broken down by major types of credit exposure.
e) Residual Contractual maturity breakdown of the whole portfolio by major types of credit exposure.
(Taka in crore)
Repayable on Demand 2,087.67
Not more than 3 months 828.24
More than 3 month but not more than 1 year 4,692.45
More than 1 year but not more than 5 years 8,277.27
More than 5 years 5,380.67
Total 21,266.30
• Amount of impaired loans and if available, past due loans, provided separately: TK. 6,215.01 crore
• Specific Provisions: TK. 3,212.03 crore
• General provisions: TK. 233.19 crore
• Charges for specific allowances and charge-offs during the period: Not Applicable
Non Performing Assets (NPAs) to Outstanding Loans & advances: 0.25 : 1.00
Qualitative Disclosures
a) The general qualitative disclosure requirement with respect to equity risk, including:
• Differentiation between holdings on which capital gains are expected and those taken under other objectives
including for relationship and strategic reasons; ABL has considerable investment in equity shares of various
companies and mutual funds and has active participation in the secondary market. Board, Executive and
Investment committee for the management of investment portfolio and its associated risk to which bank may
be exposed. In the investment process ABL strictly follows the internal policies and procedures put into place
in this respect. ABL also holds unquoted equities intent of which is not trading and the same are shown as
banking book asset in the balance sheet. As these securities are not quoted or traded in the bourses they
are shown in the balance sheet at cost price and no revaluation reserve has been created against these
equities.
56
The equity markets are traditionally volatile with a high risk, high- returns profile. In an uncertain market
place like the present, investors cannot afford to place all hope in only one product. Therefore, it is very
important to protect the total investment value by means of diversification.
• Equity holdings in the banking book are recorded in the books of accounts at cost price. Adequate provisions
are made against equity holdings in case any decrease of value of equity holdings.
Quantitative Disclosures
b) Value of investments disclosed in the balance sheet, as well as the fair value of those investments; for quoted
securities, a comparison to publicly quoted share values where the share price is materially different from fair
value.
Provisions are kept against publicly quoted shares where the share price is materially different from fair value which is
negative. However, no unrealized gain from publicly quoted share is accounted for. Only realized gain is accounted for
in case of publicly quoted shares.
c) The cumulative realized gains (losses) arising from sales and liquidations in the reporting period.
d) • Total unrealized gains (losses)
• Total latent revaluation gains (losses)
• Any amounts of the above included in Tier-2 capital.
e) Capital requirements broken down by appropriate equity groupings, consistent with the banks Methodology,
as well as the aggregate amounts and the type of equity investments subject to any Supervisory provisions
regarding regulatory capital requirements.
TK. 129.03 crore (Investment in unquoted share Tk. 1032.26 Crore × 1.25 Risk weight × 10% Capital requirement) has
been assessed against unquoted equity holdings and shown in MCR.
a) Qualitative Disclosures
The general qualitative disclosure requirement including the nature of IRRBB and key assumptions, including loan pre-
payments and behavior of non-maturity deposits, and frequency of IRRBB measurement.
Interest rate risk is the potential that the value of the on- balance sheet and the off-balance sheet positions of the bank
would be negatively affected with the change in the interest rates. Changes in interest rates also affect the underlying
value of the bank assets, liabilities and off-balance sheet instruments because the economic value of future cash flows
changes when interest rates changes.
The Bank uses a simple Sensitivity Analysis as well as Duration Gap Analysis to determine its vulnerability against the
adverse movement of market variables.
ABL discusses the interest rate issue in its ALCOM meeting on monthly basis. In addition, ABL assesses the interest
rate risk using simple duration analysis as per the formula given by Bangladesh Bank in its guidelines on Stress Testing.
For change in interest rates, currently, ABL is more risk sensible for its Assets comparable to its Liabilities.
The Bank is on a continuous process of re-structuring its assets and liabilities to make a balance between them and to
bring the situation back in its favor for any change in interest rate.
b) Quantitative Disclosures
The increase (decline) in earnings or economic value (or relevant measure used by management) for upward and
downward rate shocks according to management’s method for measuring IRRBB, broken down by currency (as
relevant).
The bank has been using ‘Stress Testing’ based on guidelines published by Bangladesh Bank to determine the following:
1) Impact on earnings and
2) Impact on Capital requirements.
Qualitative Disclosures
Views of the Board of Directors (BOD) on trading/investment activities.
Market risk arises from the movement of market prices. The BOD of the Bank views the ‘Market Risk’ as the risk to the
bank’s earnings and capital due to changes in the market level of interest rates of securities, foreign exchange and
equities as well as the volatilities of those changes. Market Risk Management provides a comprehensive and dynamic
framework for measuring, monitoring and managing interest rate, foreign exchange as well as equity, commodity price
risk of a bank that needs to be closely integrated with the bank’s business strategy.
Quantitative Disclosures
The capital requirements for
(Taka In crore)
Interest rate risk 49.23
Equity risk 190.96
Foreign exchange risk 41.57
Commodity risk 0.00
8. Operational risk
Qualitative Disclosures
Views of BOD on system to reduce Operational Risk:
The BOD of the bank views, Operational Risk as the risk of loss arising from inadequate or failed internal processes,
people, systems, external causes, fraud, unauthorized activities, error, omission, inefficiency, systems failure or external
events.
Transactions, events etc. that are being taken place at the operational level monitored and reported.
If deviations are found, corrective actions are taken to bring the deviation back into the track.
An MIS is in place and is used to identify record and assess any kind of operational risk and to generate appropriate
regular management reporting.
Since inefficiency is one of the root causes of operational risk, the Bank trains its operational staff on regular basis to
make them more effective and efficient for mitigating operational risks.
Quantitative Disclosures
The capital requirements for operational risk: TK. 285.66 crore.
58
Corporate Social Responsibility
59
Corporate Social Responsibility keen to augment CSR activities gradually in the
The role of business, in worldwide and especially days to come. As such in broadly defining, CSR
in the developing countries, has evolved over the refers to the voluntary role of business towards
last few decades from classical ‘profit maximizing’ building a better society and cleaner environment
approach to a ‘social responsible’ approach. There beyond its financial commitments and regulatory
are many reasons for shifting the role of business obligations. Considering importance of CSR,
from classical concept to a social responsible Bangladesh Bank since June 2008 has officially
Finance Minister A.M.A. Muhit, MP, recieving blankets from ABL for distribution to the cold-stricken people
approach. Enterprises create wealth and job started encouraging towards mainstreaming CSR
opportunities for the society and on the other hand,
in banks and financial institutions of Bangladesh.
they pollute and destroy environment and ecology
with the devastating impact on human health and Agrani Bank Limited passionately believes that a
bio-diversity worldwide. The concept of social better society is fundamental precondition for a
responsibility of a company is recent phenomenon better business environment. As such, CSR is
but many observers agree that the globalization
viewed as one of the core corporate values of the
has spurred its growth and prominence.
bank. In its millennium summit held at the UN
Primarily, Corporate Social Responsibility (CSR) Head Quarters, New York, USA in 2000; the United
starts with the consideration of social implications Nations set eight goals popularly known as
by any corporate body which is ultimately reflected Millennium Development Goals, such as: i)
through its initiatives towards betterment of the eradicate extreme poverty and hunger, ii) achieve
disadvantaged peoples of a society. As a universal primary education, iii) promote gender
stakeholder of the society, Agrani Bank Limited is equality & empower women, iv) reduce child
60
mortality, v) improve maternal health, vi) combat training programs; observing important national
HIV/AIDS, malaria and other diseases, vii) ensure days etc. With a view to providing a smooth
environmental sustainability and viii) develop a interface between student life and professional life,
global partnership for development. Bangladesh is ABL offers internship facility to the BBA and MBA
students of different universities. The interns were
one of the signatories to achieve those goals by
granted the opportunities to groom with us in a
2015. As such, ABL has aligned her CSR activities truly professional, dynamic and challenging
partially with those goals. corporate environment.
Agrani Bank Limited is committed to contribute Health Care
towards social development through its CSR Access to healthcare facilities is one of the
program. ABL’s ethical standard is not only meant fundamental rights of every human being.
ABL Chairman Dr. Khondoker Bazlul Haque handing over a Bus to the Vice Chancellor of BUET
for maximising profit, rather its vision is to build up However, most of our people, especially the
a society where human dignity and rights receive underprivileged group has little or no access to
the highest consideration and evaluation. Bank’s health care facilities. As such, ABL is committed to
motto is also to improve the society and its culture assist those poor people, who have no way to
by means of CSR. secure basic treatment. During the year 2012, the
bank has given financial assistance from its CSR
Education fund a sum of Tk. 85.32 lac to 127 beneficiaries to
Akin to the previous years, ABL has donated a ease their miseries.
sizeable amount to various educational
institutions. In the year, the bank donated Tk. Disaster Relief
281.18 lac to 68 beneficiaries. These helps were ABL’s lending policies with regard to
extended for renovation/construction of environmental management are responsive to
building/class rooms of different schools, colleges, emergency support needs of population groups
universities, libraries etc; giving stipend to the poor affected by natural and man made disasters.
meritorious students; sponsoring various During the year 2012, the bank has spent Tk.
seminars, conferences, convocations, alumnies, 14.19 lac for the donation of 12,191 blankets to the
anniversaries, drama festivals, competitions, cold stricken poor people of the country in the
Dr. Khondoker Bazlul Haque, Chairman of ABL, handing over an Ambulence to the Vice Chancellor of BUET
62
Finance Minister A. M. A. Muhit, MP, is seen with the champion team of ABL sponsored 23rd National Youth Hockey 2012
relationship with the business friends for mutual by introducing rebate rate of interest and ABL is
growth and development. The relationship with our one of the major participants of this initiative. In this
business partners is based on reciprocal trust and sector, ABL disbursed an amount of Tk.1,623.20
respect. We transact with them in a fair and lac in the year 2012.
transparent way.
Promotion of Entrepreneurship
Poverty Alleviation The bank envisaged fostering entrepreneurship
It is globally accepted that the Non-Government amongst the potential, new and small
Organizations (NGOs) have been performing a entrepreneurs and generating employment
laudable role in poverty alleviation across the through financing Small and Medium Enterprises.
globe, especially in Bangladesh. With a view to keeping the aim in mind, ABL does not only run
widening the access to finance to the poor and
after the so called blue chips towards profit
ultra poor community, ABL has been financing
maximize of the bank. Rather, it always remains
NGOs since 1997 at privileged rates of interest.
stick to the triple bottom line: People, Planet &
ABL financed NGOs are of various categories and
Profit and focused to the promotion of SMEs. In
capacities. Such activities also contributed to
this way, a lot of entrepreneurs have grown with us
generation of income and employment as well.
through which employment opportunities are
Promotion of Crop Production created for a huge number of people.
To attain food security of the country ABL has been
providing credit facilities to the farmers at a lower Women Empowerment
rate of interest (currently at 8 percent) since 1977. As half of our population is woman, a sustainable
A huge amount of foreign currency is spent in national progress can’t be attained, if women are
every year to import pulse, oil-seeds, spices, left aside. Therefore, they should progressively be
maize etc. In order to save foreign currency, the brought to the mainstream of our development
Government of Bangladesh encourages our activities. Considering this reality the bank through
farmers to boost up the production of above crops its ‘Nari Agrani’ program has been mobilizing credit
facilities in industry, service and business sector to growth etc. The Bank continued such awareness
the potential women entrepreneurs at a reduced building activities for the year 2012.
rate of 10 percent interest. So far the bank has
Other CSR Activities
financed several woman entrepreneurs and it will
Agrani Bank Limited is always attentive to attain
gain due momentum in the days to come.
more and more good corporate attributes. So,
Awareness Building apart from the exposures mentioned above, ABL’s
Generation of awareness is a very useful tool to CSR disclosure includes multi-faceted social
combat social evils, like drug addiction, smoking, activities. The bank also spent Tk. 75.69 lac to 64
pollution, terrorism, population etc. For this beneficiaries at various private, semi government
purpose, the bank has continued support to and government bodies and socio cultural
different social organizations who displayed organizations.
banner, festoon sticker, display board and use
such other communication channels for Category-wise CSR activities of the Bank in 2012
discouraging drug, smoking, pollution, population are as follows:
01 Education 68 281.18
02 Health Care 127 85.32
03 Disaster Relief 12,191 14.19
04 Environment 02 7.00
05 Sports 08 21.15
06 Arts & Culture 09 48.45
07 Others 64 75.69
Total 12,469 532.98
64
Directors’ Report
to the Shareholders
Directors’ Report †kqvi‡nvìvi‡`i cÖwZ
to the Shareholders cwiPvjK‡`i cÖwZ‡e`b
Bismillahir Rahmanir Rahim wemwgjvwni ivngvwbi ivwng
According to ‘World Economic Outlook (WEO), AvšÍR©vwZK gy`ªv Znwej (IMF) Gi World Economic
October 2012’ of IMF, despite that the world Outlook (WEO), 2012 Abyhvqx 2012 mv‡j wek¦
economic growth slowed to 3.30 percent in 2012
A_©‰bwZK cÖe„w× 2011 mv‡ji 3.80 kZvsk †_‡K n«vm
†c‡q 3.30 kZvs‡k `vuov‡Z cv‡i| Z‡e 2013 mv‡j cÖe„w×
from 3.80 percent in 2011, it is projected to rise to
†e‡o 3.60 kZvs‡k `vuov‡bvi c~ev©fvm Kiv n‡q‡Q| DbœZ
3.60 percent in 2013. Growth of high income A_©bxwZi cÖe„w× 2011 mv‡j 1.60 kZvsk †_‡K mvgvb¨ n«vm
countries would deteriorate further from 1.60 †c‡q 2012 mv‡j 1.30 kZvs‡k `vuov‡jI 2013 mv‡j Zv
66
percent in 2011 to 1.30 percent in 2012 but is 1.50 kZvs‡k DbœxZ nIqvi c~ev©fvm Kiv n‡q‡Q| BD‡iv
expected to rise to 1.50 percent in 2013. It has A‡j mxwgZ AvKv‡ii g›`vi c~ev©fvm Kiv n‡q‡Q, †hLv‡b
cÖe„w× 2012 mv‡j -0.40 kZvs‡k msKzwPZ n‡Z cv‡i, hv
been forecasted for eurozone to have sluggish 2013 mv‡j 0.20 kZvs‡k DbœxZ nIqvi c~ev©fvm Kiv
growth of -0.40 percent in 2012 which was 1.40 n‡q‡Q| Ab¨w`‡K weKvkgvb I Dbœqbkxj A_©bxwZi cÖe„w×
percent in 2011 and is expected to grow to 0.20
2011 mv‡ji 6.20 kZvsk †_‡K n«vm †c‡q 2012 mv‡j
5.70 kZvs‡k Ges 2013 mv‡j 6.00 kZvs‡k DbœxZ
percent in 2013. nIqvi cÖZ¨vkv Kiv n‡q‡Q|
On the other hand, according to Asian Gkxq Dbœqb e¨vsK cÖKvwkZ Asian Development
Development Outlook, October 2012, the dimming Outlook, October 2012-G wek¦e¨vcx Pvwn`v n«vm cvIqv
global growth prospects and soft domestic
demand in the region’s two largest economies are
m‡Ë¡I Gkxq A‡j cÖe„w×i aviv eRvq _vK‡e e‡j c~ev©fvm
slowing the pace of developing Asia’s expansion. Kiv n‡q‡Q| GwWweÕi c~ev©fvm Abyhvqx Gkxq A‡ji cÖe„w×
Growth was estimated to slide from 7.20 percent in 2011 mv‡ji 7.20 kZvsk †_‡K mvgvb¨ n«vm †c‡q 2012
2011 to 6.10 percent in 2012, which was expected
mv‡j 6.10 kZvs‡k Ges 2013 mv‡j cÖe„w× Avevi 6.70
to bounce back to register 6.70 percent growth in
2013. kZvs‡k †cŠuQv‡e e‡j Avkv Kiv n‡q‡Q|
Bangladesh has established herself as the second †cvkvK wk‡í Px‡bi ci we‡k¦i wØZxq e„nËg ißvwbKviK
largest exporter of apparels in the world, after †`k wn‡m‡e evsjv‡`k wb‡R‡K cÖwZwôZ Ki‡Z m¶g
China; our shipbuilding, footwear, pharmaceuticals
n‡q‡Q| Avgv‡`i RvnvR wbg©vY wkí, dzUIq¨vi, Jla wkí
and other non-traditional exports are showing
encouraging signs. Our farmers have increased Ges Ab¨vb¨ AcÖPwjZ ißvwb Drmvne¨ÄK AMÖMwZi Qvc
food grains production by more than three fold †i‡L‡Q| ¯^vaxbZvi cieZx© mg‡qi Zzjbvq eZ©gv‡b
since independence enabling Bangladesh to more Avgv‡`i K…l‡Kiv cÖvq 3 ¸Y †ewk Lv`¨ km¨ Drcv`b Ki‡Q
towards food security. Our economy has been able hv evsjv‡`k‡K Lv`¨ wbivcËv AR©‡bi c‡_ GwM‡q wb‡q
to demonstrate impressive resilience in the face of
hv‡”Q| Avgv‡`i A_©bxwZ ˆewk¦K Avw_©K I Ab¨vb¨
multiple global and financial crisis. Bangladesh’s
track record in attaining key Millennium P¨v‡jÄmg~n `¶Zvi mv‡_ †gvKv‡ejv Ki‡Z m¶g n‡q‡Q|
Development Goals (MDGs) including in the areas evsjv‡`‡ki `vwi`ª we‡gvPb, wj½ ˆelg¨ `~ixKiY, ¯^v¯’¨
of poverty alleviation, gender parity, and access to †mevi gv‡bvbœqb Ges wk¶vi AMÖMwZmn Ômnmªvã Dbœqb
68
2010-11, the private and the public sector investments wewb‡qvM 5.60 kZvsk| we`y¨rmn AeKvVv‡gv Lv‡Z
were 19.50 percent and 5.60 percent of GDP
respectively. Major initiatives of the Government
miKv‡ii e¨vcK D‡`¨vM MÖnY I e¨emvq e¨q n««v‡mi d‡j
implemented in infrastructure sector including power wewb‡qvM cwiw¯’wZi DbœwZ N‡U‡Q| c¶všÍ‡i, †iwgU¨vÝ
and reduction in cost of doing business helped create
investment-friendly environment. In addition to this, cÖev‡ni cÖe„w× m‡šÍvlRbK Ae¯’vq eRvq _vKvi d‡j
because of satisfactory growth of remittances, national 2011-12 A_©eQ‡i RvZxq mÂq MZ A_©eQ‡i wRwWwcÕi
savings in FY 2011-12 upturned to 29.40 percent of GDP
from 28.80 percent of GDP in the previous year. 28.80 kZvsk †_‡K 29.40 kZvs‡k e„w× †c‡q‡Q|
Inflation g~j¨ùxwZ
The 12 month average inflation rate reached to 2010-11 A_©eQ‡i evwl©K Mo g~j¨ùxwZ wQj 8.80 kZvsk
10.62 percent in FY 2011-12 which was 8.80 hv 2011-12 A_©eQ‡i 10.62 kZvs‡k `uvovq| g~jZt
percent in FY2010-11. Oil and food inflation in AvšÍRv©wZK evRv‡i R¡vjvwb †Zj I Lv`¨ c‡Y¨i D”Pg~j¨,
global market and excessive credit flows to Abyrcv`bkxj Lv‡Z AwZwi³ F‡Yi cÖevn g~j¨ùxwZ‡Z
unproductive sectors were mainly responsible for f‚wgKv †i‡L‡Q| Z‡e weMZ gvm mg~‡n g~j¨ùxwZi DaŸ©gyLx
this upturn. Inflation on point to point basis in June Pvc m¤cÖwZ K‡g G‡m‡Q| c‡q›U-Uz-c‡q›U wfwˇZ
2012 stood at 8.56 percent which was 10.49 g~j¨ùxwZi nvi gvP© 2011 gv‡m `yB A‡¼ (10.49 kZvsk)
percent in March 2011. From the trend analysis of
†cuŠQvi ci Ryb 2012 gv‡m g~j¨ùxwZ Avevi GK A‡¼ A_©vr
inflation in Bangladesh, it is clear that in the first
8.56 kZvs‡k †b‡g G‡m‡Q| evsjv‡`‡ki g~j¨ùxwZi
half of FY 2011- 2012 general inflation went up
MwZaviv ch©‡e¶Y Ki‡j †`Lv hvq †h, 2011-12 m‡bi
because of food inflation. However, at the end of
FY2011-12, non-food inflation was the key factor in
cÖ_gv‡a© g~jZ Lv`¨ g~j¨ùxwZi Kvi‡YB mvaviY g~j¨ùxwZ
pushing general inflation upward. At this point in †e‡o‡Q| GB mg‡q Lv`¨ g~j¨ùxwZ K‡g `uvwo‡q‡Q 7.08
time, food inflation recorded to 7.08 (monthly rate, kZvs‡k hv c~e©eZx© 2010-11 m‡bi GKB gv‡m wQj 13.00
point to point basis) percent from about 13.00 kZvsk (gvwmK nvi, c‡q›U Uz c‡q›U †ewmm)| Z‡e m¤cÖwZ
percent in the same month of FY2010-11. Lv`¨-ewnf‚©Z g~j¨ùxwZ mvaviY g~j¨ùxwZ e„wׇZ f‚wgKv
Satisfactory food production and supply of ivL‡Q| Af¨šÍixY Lv`¨ k‡m¨i Drcv`b fvj nIqv Ges
essential commodities including demand wbZ¨ cÖ‡qvRbxq c‡Y¨i mieivn wbwðZKi‡Yi cvkvcvwk
management through Open Market Sale (OMS) of evRvie¨e¯’v gwbUwis, †Lvjv evRv‡i wbZ¨ cÖ‡qvRbxq cY¨
the essential commodities and sufficient stock of mvgMÖx wewµ (IGgGm) I Lv`¨ wbivcËv wbwðZKi‡Yi Rb¨
food grains contributed to the efforts of pulling chv©ß Lv`¨ gRy` _vKvq Lv`¨ g~j¨ùxwZ n«vm †c‡q‡Q|
down food inflation. On the other hand, there was
Ab¨w`‡K, AvšÍR©vwZK evRv‡i R¡vjvwb †Z‡ji g~j¨ e„w×,
a non-food inflationary pressure due to price hike
wewbgq nv‡ii AewPwZ Ges R¡vjvwb †Z‡ji g~j¨ mgš^‡qi
in international market, depreciation in exchange
cÖfve Lv`¨-ewnf‚©Z g~j¨ùxwZ e„wׇZ f‚wgKv †i‡L‡Q|
rate and adjustment of oil price. In order to contain
inflation, the Government has undertaken
g~j¨ùxwZ‡K mnbxq chv©‡q ivLvi j‡¶¨ miKvi ivR¯^ I
necessary steps by forging better coordination g~`ªv Lv‡Zi mgwš^Z c`‡¶c MÖnY K‡i| R¡vjvwb †Z‡ji g~j¨
between fiscal and monetary policies. Although mgš^‡qi d‡j Lv`¨ g~j¨ùxwZi Ici Pvc co‡jI Zv
there was a pressure of oil price adjustment on mvgwqK| g~j¨ mgš^‡qi d‡j ev‡R‡U fZz©Kx eve` eivÏ
food price, it was transitory. It is expected that n«v‡mi gva¨‡g ev‡RU NvUwZ Kg‡e hv g~j¨ùxwZ n«v‡m
actions like discouraging credit flows to BwZevPK f‚wgKv ivL‡e| Abyrcv`bkxj Lv‡Z F‡Yi †hvMvb
unproductive sector alongside adopting restrained wbiærmvwnZ Kivi cvkvcvwk mshZ (cautious) gy`ªvbxwZ
and effective monetary policy will reduce the MÖn‡Yi d‡j AvMvgx w`b¸‡jv‡Z Lv`¨-ewnf‚©Z g~j¨ùxwZi
inflationary pressure. PvcI n«vm cv‡e e‡j Avkv Kiv hvq|
my‡`i nvi
Interest Rate
There was a maximum cap of 7.00 percent interest Avw_©K LvZ ms¯‹vi Kg©m~wPi AvIZvq cÖewZ©Z bgbxq my`
rate on export credit fixed since January 10, 2004 nvi (flexible interest rate) bxwZgvjvi Aax‡b
70
to facilitate export earnings. Recently, the cap on e¨vsK¸‡jv‡K Zv‡`i my` nvi wbav©i‡Yi ¶gZv cÖ`vbmn
interest rate on lending in all sectors other than KwZcq Lv‡Z F‡Yi my` nv‡ii DaŸ© mxgv wbav©iY Kiv n‡jI
pre-shipment export credit and agricultural loans mv¤cÖwZKKv‡j mvwe©K cwiw¯’wZ chv©‡jvPbv K‡i
has been withdrawn. This has brought wcÖ-wkc‡g›U ißvwb FY (7.00 kZvsk) I K…wl (m‡ev©”P
13.00 kZvsk) F‡Yi my` nvi Qvov e¨vsK F‡Yi my` nv‡ii
competitiveness among banks in fixing rate of
m‡ev©”P mxgv cÖZ¨vnv‡ii wm×všÍ M„nxZ n‡q‡Q| G‡Z my‡`i
interest on lending in a rational manner. Banks are
nvi wbav©i‡Y e¨vsK¸‡jvi g‡a¨ cÖwZ‡hvwMZvg~jK cwi‡ek
allowed to differentiate interest rate up to a m„wó n‡q‡Q hv my‡`i nvi †hŠw³KxKi‡Y mnvqK f‚wgKv cvjb
maximum of 3.00 percent considering comparative Ki‡e| MÖvnK‡`i‡K GKB Lv‡Z FY cÖ`v‡bi †¶‡Î e¨vsK
risk elements involved among borrowers in the mg~n AvgvbZ I F‡Yi my`/gybvdv nvi Zzjbvg~jK SzuwK
same lending category which they would promptly we‡ePbvq m‡ev©”P 3.00 kZvsk Kg †ewk Ki‡Z cvi‡e Ges
expose in their respective website and inform to cwiewZ©Z G my` nvi Zvr¶wYKfv‡e Zv‡`i ¯^-¯^
the Bangladesh Bank. I‡qemvB‡U cÖKvk Kivi cvkvcvwk evsjv‡`k e¨vsK‡K
AewnZ Ki‡e|
Import Avg`vwb
The total import payments (C&F) stood at US$ 2010-11 A_©eQ‡i Avg`vwb e¨q 41.79 kZvsk e„w× †c‡q
35,516 million during FY 2011-12, which was 5.50 33,657 wgwjqb gvwK©b Wjv‡i †cŠu‡Q| PjwZ 2011-12
72
account balance recorded a surplus of US$ 1,630 wgjqb gvwK©b Wjvi, †hLv‡b c~e©eZx© A_©eQ‡i G wnmv‡e
million as compared to the surplus of US$ 885 DØ„‡Ëi A¼ wQj 885 wgwjqb gvwK©b Wjvi| 2011-12
million of FY 2010-11.The deficit recorded in the A_©eQ‡i mvwe©K †jb‡`b fvimv‡g¨ NvUwZi cwigvY `vuovq
overall balance of payment stood at US$ 494 494 wgwjqb gvwK©b Wjvi| c~e©eZx© A_©eQ‡i mvwe©K
million in FY 2011-12, which was US$ 656 million †jb‡`b fvimv‡g¨ NvUwZi cwigvY wQj 656 wgwjqb gvwK©b
in FY 2010-11. Wjvi|
Different macroeconomic indicators for the next Af¨šÍixY †¶‡Î ivR¯^ Avni‡Yi avivevwnK cÖe„w×, K…wl
fiscal year and over the medium term have been Lv‡Z avivevwnK cÖe„w× eRvq ivLv, we`y¨rmn AeKvVv‡gv
updated in view of continued satisfactory Lv‡Z wewb‡qvM e„w×, ˆe‡`wkK gy`ªvi wewbgq nv‡ii w¯’wZkxj
performance in revenue collection, growth in
Ae¯’vq wd‡i Avmv Ges g~j¨ùxwZ Kg‡Z ïiæ Kivi
agriculture sector, investment in infrastructure
including power, exchange rate stability and †cÖ¶vc‡U AvMvgx A_©eQi Ges ga¨‡gqv‡` mvgwóK
containment of inflationary pressure. A_©‰bwZK m~PK mg~n nvjbvMv` Kiv n‡q‡Q|
In the Medium Term Macroeconomic Framework, ga¨‡gqv`x mvgwóK A_©‰bwZK KvVv‡gv‡Z AvMvgx 2012-13
real GDP growth has been estimated at 7.20 A_©eQ‡i wRwWwc cÖe„w× 7.20 kZvsk, 2013-14 A_©eQ‡i
percent for FY 2012-13, 7.60 percent for FY 7.60 kZvsk Ges µgvš^‡q Zv e„w× †c‡q 2014-15
2013-14, 8.00 percent for FY 2014-15 and 9.10 A_©eQi bvMv` 8.00 kZvsk Ges 2015-16 A_©eQ‡i Zv
percent for FY 2015-16 respectively. It is expected 9.10 kZvs‡k DbœxZ n‡e g‡g© cÖ‡¶cY Kiv n‡q‡Q| G
that investment will increase from 25.40 percent of mg‡q wewb‡qvM 2011-12 A_©eQ‡i wRwWwcÕi cÖvq 25.40
GDP in FY 2011-12 to 33.70 percent in FY 2016-17 kZvsk †_‡K e„w× †c‡q 2016-17 A_©eQ‡i 33.70
where private and public investment will stand at kZvs‡k `vuov‡e e‡j c~ev©fvm Kiv n‡q‡Q, hvi g‡a¨
25.20 percent and 8.50 percent respectively. On †emiKvwi wewb‡qvM 25.20 kZvs‡k Ges miKvwi wewb‡qvM
the other hand, domestic savings is expected to 8.50 kZvs‡k `vuov‡Z cv‡i| Af¨šÍixY mÂq eZ©gv‡b
increase to 22.40 percent from 19.60 percent and wRwWwcÕi cÖvq 19.60 kZvsk †_‡K ga¨ †gqv‡` 22.40
national savings will go up from 29.40 percent to kZvs‡k Ges RvZxq mÂq wRwWwcÕi 29.40 kZvsk †_‡K
32.80 percent in the medium term. 32.80 kZvs‡k DbœxZ n‡e g‡g© cÖ‡¶cY Kiv n‡q‡Q|
In agriculture sector, there was a consistent and K…wl Lv‡Z MZ wZb eQi cÖe„w×i avivevwnKZv eRvq wQj|
positive growth over the last three years. Huge K…wl Lv‡Z †UKmB cÖe„w× AR©‡bi j‡¶¨ e¨vcK miKvwi
government support such as subsidy, power mnvqZv †hgb- chv©ß fZz©wK cÖ`vb, †m‡Pi Rb¨ wbiew”Qbœ
supply for irrigation, flow of agricultural credit, we`¨yr mieivn, K…wl F‡Yi cÖevn e„w×, cÖwZK‚j AvenvIqv I
innovation of new variety of salinity tolerant seed
jeYv³Zv mwnòz exR D™¢veb Ges K…wl wfwËK wk‡íi
and weather, and increasing assistance to
agro-based industries contributed significantly in
weKv‡k mnvqZv cÖ`vb cÖf…wZ K…wl Lv‡Z cÖe„w× m‡šÍvlRbK
achieving sustainable growth in agriculture sector. chv©‡q ivLv m¤¢e n‡q‡Q| K…wl Lv‡Z G Kvh©µgmg~n
All these activities will continue which is expected fwel¨‡ZI Ae¨vnZ _vK‡e hv K…wlLv‡Z †UKmB cÖe„w× eRvq
to support sustainable agricultural growth. ivL‡Z f‚wgKv ivL‡e e‡j Avkv Kiv hvq|
The estimated government expenditure stood at miKvwi e¨q 2011-12 A_©eQ‡ii ms‡kvwaZ j¶¨gvÎv
16.50 percent of GDP in FY 2011-12 which is (wRwWwcÕi 16.50 kZvsk) †_‡K 2012-13 A_©eQ‡i
expected to be 18.40 percent in FY 2012-13. The wRwWwcÕi 18.40 kZvs‡k Ges µgvš^‡q Zv 2016-17
target for FY 2016-17 has been set at 20.60 A_©eQi bvMv` wRwWwcÕi 20.60 kZvs‡k DbœxZ Kivi
percent of GDP. Against this, expenditure on j¶¨gvÎv wbav©iY Kiv n‡q‡Q| Gi g‡a¨ evwl©K Dbœqb
Annual Development Programme is planned to be Kg©m~wP e¨q 2011-12 A_©eQ‡ii wRwWwcÕi 3.90 kZvsk
increased from 3.90 percent of GDP in FY 2011-12 †_‡K 2016-17 A_©eQ‡i wRwWwcÕi 7.00 kZvs‡k †bqvi
to 7.00 percent of GDP in FY 2016-17. cwiKíbv i‡q‡Q|
For financing the deficit, Government has planned NvUwZ A_v©q‡b e¨vsK e¨e¯’v †_‡K FY MÖnY n«v‡mi
to reduce borrowing from the banking system. In cwiKíbv i‡q‡Q| G j‡¶¨ cvBcjvB‡b _vKv cÖwZkÖæZ
this regard, priority has been given to foreign ˆe‡`wkK mnvqZv Qv‡oi j‡¶¨ Kvh©Ki c`‡¶c MÖnY I
assistance which were committed and in pipe line. cÖ‡qvR‡b mve©‡fŠg FY MÖn‡Yi welqwU miKv‡ii we‡ePbvq
For consecutive two years, Standard and Poor’s iv‡q‡Q| D‡jøL¨, Standard & Poor’s (S & P) Ges
(S&P) and Moody’s retained the same sovereign Moody’s evsjv‡`k‡K cici `yÕeQi GKB mve©‡fŠg
credit rating for Bangladesh. In their respective FYgvb †iwUs ZvwjKvq †i‡L‡Q| G †iwUs ZvwjKvq S & P
lists rating for Bangladesh is BB- and Ba3. Ges Moody’s evsjv‡`k‡K BB- Ges Ba 3 gvb cÖ`vb
According to this rating, in terms of credit K‡i‡Q| G †iwUs Abyhvqx FY cwi‡kv‡ai Avw_©K m¶gZvi
worthiness, Bangladesh is at par with the
wePv‡i evsjv‡`k wdwjcvBb, B‡›`v‡bwkqv I wf‡qZbv‡gi
Philippines, Indonesia and Vietnam. Such rating
will decrease the cost of debenture and import
mgK¶Zv AR©b K‡i‡Q| Giƒc †iwUs Gi d‡j FYc‡Îi
payment and will help in attracting more foreign
LiP n«vm cv‡e Ges G‡Z Avg`vwb e¨q mvkÖq n‡e| †`‡k
investment. ˆe‡`wkK wewb‡qv‡Mi cwigvY e„w× cv‡e|
74
Containing inflation is a big challenge for cÖe„w× AR©‡bi c‡_ Ab¨Zg P¨v‡jÄ n‡jv g~j¨ùxwZ‡K
macroeconomic stability. In MTMF, inflation has wbqš¿‡Y ivLv| MTMF-G AvMvgx A_©eQ‡i g~j¨ùxwZi nvi
forecasted to bring down at 7.50 percent in the
n«vm †c‡q 7.50 kZvs‡k Ges ga¨‡gqv‡` Zv cÖvq 5.00
upcoming fiscal year and that is expected to bring
out almost 5.00 percent. It was expected that the kZvs‡k Kwg‡q Avbvi c~ev©fvm Kiv n‡q‡Q| g~j¨ùxwZ
steps taken to increase food production, wbqš¿‡Yi j‡¶¨ Af¨šÍixY Lv`¨ Drcv`b e„w× mieivn e¨e¯’v
uninterrupted food supply and enhance food wbwe©Nœ ivLv Ges Lv`¨ wbivcËv †Rvi`vi Kivi j‡¶¨
security would also be helpful in reining on
inflation. Bangladesh Bank in its monetary policy
miKv‡ii M„nxZ Kvh©µgmg~n g~j¨ùxwZ wbqš¿‡Y f‚wgKv
statement has laid emphasis on limiting money ivL‡e e‡j Avkv Kiv n‡q‡Q| gy`ªv bxwZ‡Z gy`ªv I FY
supply and discouraging credit flow to the †hvMvb mshZ †i‡L Abyrcv`bkxj I AcPqg~jK Lv‡Z
unproductive sectors. Side by side, emphasis is
F‡Yi †hvMvb wbqš¿‡Yi cvkvcvwk K…wl, ¶z`ª I gvSvwi
also given to ensure credit flow to productive and
priority sectors including agriculture and SME D‡`¨vM LvZmn Drcv`bkxj Ges AMÖvwaKvi Lv‡Z F‡Yi
sectors. chv©ß †hvMvb wbwðZKi‡Yi Ici ¸iæZ¡v‡ivc Kiv n‡q‡Q|
Financial recession in eurozone economies, one of evsjv‡`‡ki cÖavb ißvwbevRvi BD‡ivwcq BDwbq‡bi
the major export markets of Bangladesh, has A_©bxwZi ms‡KvP‡bi cÖfv‡e ißvwb Lv‡Zi cÖe„w×i Ici
affected its export sector slowing it down to 6.20 †bwZevPK cÖfve †d‡j‡Q Ges Zv 2011-12 A_©eQ‡i 6.20
percent in FY 2011-12. However, it has been kZvs‡k †b‡g G‡m‡Q| Z‡e BD‡iv m¼‡Ui wbim‡b
possible to tackle the crisis through integrated †`k¸‡jvi mw¤§wjZ cÖqvm Ges G j‡¶¨ †h Kvh©µg MÖnY
efforts of euro countries. Besides, initiatives on
Kiv n‡q‡Q Zvi d‡j m¼U KvwU‡q DVv m¤¢e n‡e e‡j Avkv
exploring new markets and diversification of export
Kiv hvq| GQvov, bZzb evRvi A‡š^lY I ißvwb cY¨
goods have already contributed to our economy,
though to a limited extent.
ˆewPÎKi‡Yi †h Kvh©µg nv‡Z †bqv n‡qwQj Zvi mydj
mxwgZ chv©‡q n‡jI †`Lv †M‡Q|
The remittances from expatriate Bangladeshi †iwgU¨vÝ cÖev‡ni cÖe„w× PjwZ A_©eQ‡i 10.24 kZvsk
workers grew by 10.24 percent during this year
n‡q‡Q, hv cieZx© eQi mg~‡n 12.00 kZvsk nv‡i e„w× cv‡e
which has been estimated to be 12.00 percent for
next years. It is expected that concerted efforts on e‡j cÖ‡¶cY Kiv n‡q‡Q| Ae¨vnZ K~U‰bwZK D‡`¨v‡Mi
exploring new labour markets and intensive gva¨‡g bZzb bZzb kÖg evRvi A‡š^l‡Yi cÖ‡Póv ˆe‡`wkK
diplomatic initiatives will increase expatriate Kg©ms¯’vb e„w× I †iwgU¨vÝ cÖev‡ni aviv eRvq ivL‡e e‡j
employment and contribute towards sustaining the
cÖZ¨vkv Kiv n‡q‡Q| PjwZ wnmv‡ei fvimv‡g¨i DØ„Ë n«vm
existing trends of remittance of flows. The current
account balance (CAB) decreased but in MTMF it †c‡jI Zv abvZ¥K Ae¯’vq _vK‡e e‡j MTMF-G cÖ‡¶cY
is expected to bring back in a positive territory. Kiv n‡q‡Q| m¤cÖwZ gy`ªvi wewbgq nvi I ˆe‡`wkK gy`ªvi
Pressures on exchange rate and foreign exchange wiRv‡f©i Ici †h Pvc m„wó n‡qwQj, Kvh©Ki ivR¯^ I
reserve have been offset due to adoption of
effective fiscal and monetary policy stances. Both
gy`ªvbxwZi d‡j Zv wbimb Kiv m¤¢e n‡q‡Q| 2011-12
the exchange rate and reserve situation remained A_©eQ‡i gy`ªvi wewbg‡qi nv‡ii w¯’wZkxjZv wd‡i G‡m‡Q
stable at the end of FY 2011-12. The goal of Ges wiRvf© cwiw¯’wZI w¯’wZkxj Ae¯’vq i‡q‡Q| †hŠw³K
maintaining macroeconomic stability together with ivR¯^ I gy`ªvbxwZi mgš^‡qi d‡j Af¨šÍixY I ewntLv‡Zi
expected GDP growth and target of inflation will be
achieved if the future shocks from domestic as well AwfNvZ †gvKv‡ejv K‡i mvgwóK w¯’wZkxjZv eRvq ivLvmn
as external sectors could be tackled properly. Kvw•LZ cÖe„w× AR©b m¤¢e n‡e e‡j Avkv Kiv hvq|
Finance Minister A.M.A. Muhit, MP, is receiving right share and bonus share certificates of ABL from its Chairman,
Dr. Khondoker Bazlul Hoque and Managing Director & CEO Dr. Syed Abdul Hamid, FCA
76
The plan contains necessary strategies to ga¨ Av‡qi †`‡k iƒcvšÍ‡ii P¨v‡jÄ †gvKv‡ejv I Gi R‡b¨
overcome the challenges in terms of turning the cÖ‡qvRbxq †KŠkjmg~n i‡q‡Q G cwiKíbvq| Gi cÖavb
country into a medium income economy. The
major goals of this vision are: to accelerate the j¶¨¸‡jv n‡”Q: 2021 mvj bvMv` cÖe„w× nvi 10 kZvs‡k
growth rate up to 10 percent by 2021, to raise per DbœxZ Kiv, gv_vwcQy Avq 2,000 gvwK©b Wjv‡i DbœxZ Kiv,
capita income up to US$ 2,000, to reduce the
`vwi`ª mxgvi wb‡P emevmKvix RbM‡Yi msL¨v 13.50
number of population living under poverty line to
13.50 percent, to reduce the unemployment rate kZvs‡k bvwg‡q Avbv, †eKviZ¡ nvi 15 kZvs‡k bvwg‡q
into 15 percent, to increase annual per head Avbv, evwl©K gv_vwcQy we`y¨r e¨envi 600 wK‡jvIqvU N›Uvq
electricity consumption to 600 kilowatt hour and to
DbœxZ Kiv Ges wWwRUvj evsjv‡`k MV‡bi Rb¨ Z_¨ cÖhyw³
strengthen IT sector for building a Digital
Bangladesh. e¨e¯’v‡K kw³kvjx Kiv|
Dr. Atiur Rahman, Governor of Bangladesh Bank, delivering his inaugural speech as chief guest at the Branch
Managers conference of ABL held on 21 April 2012 in Dhaka
All shares of the bank are held by the Government e¨vs‡Ki mg¯Í †kqv‡ii gvwjK MYcÖRvZš¿x evsjv‡`k
of the People's Republic of Bangladesh and 12 miKvi Ges AviI 12 Rb †kqvi‡nvìvi hviv miKvi KZ©„K
other shareholders (with one share each, the g‡bvbxZ| GB 12 R‡bi cÖ‡Z¨‡KB gvÎ GKwU K‡i †kqv‡ii
qualification share required to become a director) aviK hv cwiPvj‡Ki †hvM¨Zvg~jK †kqv‡ii b~¨bZg
nominated by the Government. cwigvY|
The bank has 889 branches as of 31 December 2012 mv‡ji 31 wW‡m¤^i ch©šÍ e¨vs‡Ki kvLvi msL¨v wQj
2012 with no overseas branch. The bank has, 889wU| †`‡k 2wU Ges we‡`‡k Aew¯’Z 4wU wb‡q AMÖYx
however, two at home and four in abroad named, e¨vs‡Ki m¤ú~Y© wbR¯^ gvwjKvbvq 6wU mvewmwWqvwi †Kv¤úvwb
1) Agrani Equity and Investment Limited, 2) Agrani i‡q‡Q h_v- 1) ÔAMÖYx BKz¨BwU G¨vÛ Bb‡f÷‡g›U
SME Financing Company Limited, 3) Agrani wjwg‡UWÕ, 2) ÔAMÖYx GmGgB dvBb¨vwÝs †Kv¤úvwb
Exchange House Private Limited in Singapore, 4) wjwg‡UWÕ, 3) ÔAMÖYx G·‡PÄ nvDR cÖvB‡fU wjwg‡UW,
Agrani Remittance House Sdn., Bhd. in Kuala wm½vcyiÕ, 4) ÔAMÖYx †iwgU¨vÝ nvDR, GmwWGb. weGBPwW.,
Lumpur, Malaysia, 5) Agrani Remittance House Kzqvjvjvgcyi, gvj‡qwkqvÕ, 5) ÔAMÖYx †iwgU¨vÝ nvDR,
Canada Inc. in Canada and 6) Agrani Exchange KvbvWv AvBGbwm., KvbvWvÕ Ges 6) ÔAMÖYx G·‡PÄ
Company (Australia) Pty. Limited in Australia. †Kv¤úvwb (A‡óªwjqv) wcwUIqvB. wjwg‡UW, A‡óªwjqvÕ|
Professor Dr. Khondoker Bazlul Hoque, Chairman of ABL, inaugurating the Zonal, Corporate and AD Branch Head
Conference held on 28 January 2012 in Dhaka
78
ABL’s Progress Achieved in 2012 2012 mv‡j e¨vs‡Ki AwR©Z AMÖMwZ
In all major areas, the bank made remarkable e¨emvi mKj ¸iæZ¡c~Y© †¶‡Î e¨vs‡Ki AMÖMwZ Ae¨vnZ
progress. Deposits grew by 15.95 percent in 2012 i‡q‡Q| 2012 mv‡j AvgvbZ e„w× †c‡q‡Q 15.95 kZvsk|
and reached Tk. 29,243 crore from Tk. 25,221
2011 mv‡j Avgvb‡Zi cwigvY 25,221 †KvwU UvKv| 2012
mv‡ji †k‡l Avgvb‡Zi cwigvY `vuovq 29,243 †KvwU
crore in 2011. Total loans and advances in 2012
UvKv| 2011 mv‡ji 19,409 †KvwU UvKv FY I AwMÖ‡gi
stood at TK. 21,266 crore as against Tk. 19,409
wecix‡Z 2012 mv‡ji †k‡l FY I AwMÖ‡gi cwigvY
crore in 2011; which is 9.57 percent higher than `vuwo‡q‡Q 21,266 †KvwU UvKv, hv c~e©eZx© eQ‡ii †P‡q
that of the previous year. The operating profit stood kZKiv wnmv‡e cÖe„w×i nvi `vuovq 9.57 kZvsk| 2012
at Tk. 1,007 crore at the end of 2012. mv‡j cwiPvjb gybvdv `uvwo‡q‡Q 1,007 †KvwU UvKv|
Dr. Syed Abdul Hamid, FCA, Managing Director & CEO of ABL presenting key speech at the managers conference
held on 21 April 2012 in Dhaka
In the prevailing situation, mobiliziation of deposits Pjgvb Ae¯’vq AvgvbZ msMÖn AZ¨šÍ cÖwZ‡hvwMZvg~jK
became highly competitive and as a result, the average
cost of fund for the banks in the private sector increased
welq n‡q `uvwo‡q‡Q| c~e©eZx© eQ‡ii Zzjbvq Znwej e¨q
compared to that of the previous year. The bank, e„w× †c‡q‡Q| G Kvi‡Y wb¤œe¨qmv‡c¶ AvgvbZ msMÖ‡ni
therefore, decided to mobilize low cost fund. The deposit
mix of the bank as on 31 December 2012 was as
c`‡¶c †bqv n‡q‡Q| 31 wW‡m¤^i 2012 mv‡j e¨vs‡Ki
follows: Avgvb‡Zi wPÎ wb¤œiƒc:
80
Taka in Crore †KvwU UvKvq
Types of Deposits 2012 2011 Avgvb‡Zi aiY 2012 2011
Current and other Deposits 4,033.75 4,371.42 PjwZ Ges Ab¨vb¨ AvgvbZ 4,033.75 4,371.42
Savings Bank Deposits 8,925.53 8,532.08 mÂqx AvgvbZ 8,925.53 8,532.08
Fixed Deposits 15,812.91 11,808.01 †gqv`x AvgvbZ 15,812.91 11,808.01
Bills Payable 470.73 509.33 cÖ‡`q wej 470.73 509.33
Total 29,242.92 25,220.84 †gvU 29,242.92 25,220.84
Deposit Mix 2012 Crore Taka Deposit Mix 2011 and 2012 Crore Taka
2012 2011
15,812.91
Savings Bank
11808.01
Deposits
8925.53
8,925.53
8532.08
Fixed
Current and other
Deposits
Deposits
509.33
470.73
15,812.91
4033.75
4,033.75
4371.42
Bills Payable
470.73 Current and Savings Bank Fixed Deposits Bills Payable
other deposit Deposits
c) International Trade
M) AvšÍR©vwZK evwYR¨
The international trade financing is one of the e¨vsK †h mg¯Í Lv‡Z A_©vqb K‡i AvšÍR©vwZK evwY‡R¨
major business activities conducted by the bank. A_©vqb Zb¥‡a¨ GKUv D‡jøL‡hvM¨ f~wgKv cvjb Ki‡Q|
The foreign trade related activities of the bank, 40wU ˆe‡`wkK evwYR¨ †jb‡`bKvwi kvLvi gva¨‡g m¤úvw`Z
carried out through 40 branches across the AvšÍR©vwZK evwYR¨ mswkøó Kg©KvÛ Avg`vwbKviK Ges
country, have earned confidence of importers and ißvwbKviKM‡Yi Av¯’v AR©b Ki‡Z m¶g n‡q‡Q| `¶fv‡e
exporters. For smooth operation of international AvšÍR©vwZK evwYR¨ Kivi Rb¨ mviv we‡k¦ AMÖYx e¨vs‡Ki
trade, the bank has a network of 429 foreign
i‡q‡Q 429wU we‡`kx ÔK‡imc‡Û›UÕ| AwaKš‘, e¨vsK we‡k¦i
correspondents throughout the world. In addition,
the bank is maintaining 43 NOSTRO accounts with cÖwZwbwaZ¡kxj e¨vsK¸‡jvi m‡½ 43wU Ôb‡÷ªvÕ GKvD›U
the world’s leading banks. cwiPvjbv Ki‡Q|
An agreement is signed and handed over inbetween ABL and with the local representative of New York based
remittance company Placid Express
Agrani Bank Limited secured first position in 2012 mv‡j AšÍg©yLx †iwgU¨vÝ cÖev‡n AMÖYx e¨vsK wjwg‡UW
receiving foreign remittance among the state †`‡ki ivóªxq gvwjKvbvaxb e¨vsKmg~‡ni g‡a¨ cÖ_g ¯’vb
owned commercial banks in 2012. ABL has AwaKvi K‡i‡Q| GKB eQ‡i †`‡ki mvgwMÖK AšÍg©yLx
contributed 10.07 percent to the aggregate †iwgU¨vÝ cÖev‡n AMÖYx e¨vsK wjwg‡UW Gi wnm¨v 10.07
remittance figure of the country and it is US$ kZvsk hvi cwigvY 1,427.33 wgwjqb gvwK©b Wjvi|
1,427.33 million for the calendar year 2012. ABL 2011 mv‡j e¨vs‡Ki AwR©Z †iwgU¨v‡Ýi cwigvY wQj
has a growth rate of 22.23 percent over the last 1,167.76 wgwjqb gvwK©b Wjvi| 2012 mv‡j AMÖYx
year’s achievement of US$ 1,167.76 million in e¨vs‡Ki †iwgU¨vÝ cÖev‡n 22.23 kZvsk cÖe„w× AwR©Z
remittance business. The comparative studies of n‡q‡Q| wewfbœ e¨vs‡Ki mv‡_ AMÖYx e¨vsK wjwg‡U‡Wi
remittances with the other banks are given below: †iwgU¨v‡Ýi Zzjbvg~jK wPÎ wb¤œiƒc:
82
ABL in line with remittance business expansion 2012 mv‡j AMÖYx e¨vsK wjwg‡UW Zvi †iwgU¨vÝ AvniY
policy has tied up with 4 new exchange houses †bUIqvK© AviI we¯Í…Z Kivi cÖqv‡m eûRvwZK †iwgU¨vÝ
including renowned Western Union, US Money nvDR Western Union, US Money Express Co. USA,
Express Co., USA, NBL Money Transfer Sdn.
NBL Money Transfer Sdn, Bhd, Malaysia, Standard
Bhd., Malaysia, Standard Express, USA in 2012.
At present, ABL has been under agreement with Express, USA mn 4wU bZzb G·‡PÄ nvD‡Ri mv‡_
52 exchange houses which was 48 in 2011. Apart Pzw³e× n‡q‡Q| 2011 m‡bi 48wU G·‡PÄ nvDRmn
from this, work process is in progress to induct eZ©gv‡b ABL †gvU 52wU ˆe‡`wkK G·‡PÄ nvD‡Ri mv‡_
Web Based remittance (Spot Cash) operation in Pzw³e× i‡q‡Q| GQvov e¨vsK ga¨cÖvP¨ wfwËK K‡qKwU
addition to EFT remittance with a number of Middle G·‡PÄ nvD‡Ri mv‡_ EFT †iwgU¨vÝ Gi cvkvcvwk I‡qe
East based remittance houses. Recently, Agrani
Exchange House Pvt. Limited, Singapore, a
†eRW& †iwgU¨vÝ e¨emv Pvjyi cÖ¯‘wZ wb‡q‡Q| wmsMvcyi cÖevmx
subsidiary of Agrani Bank Limited has inaugurated evsjv‡`kx‡`i Rb¨ e¨vs‡Ki wbR¯^ G·‡PÄ nvDR ÔAMÖYx
its 3rd branch in Jurong East, Singapore. Agrani G·‡PÄ nvDR cÖvt wjwg‡UW, wmsMvcyiÕ Gi Ryis B÷-G
Remittance House Sdn. Bhd., Malaysia also Z…Zxq kvLv Pvjy Kiv n‡q‡Q Ges gvj‡qwkqv¯’ ÔAMÖYx
applied to the authority for expanding its branch †iwgU¨vÝ nvDR GmwWGb. weGBPwW.Õ Gi AviI bZzb kvLv
network. With a view to channelizing remittance in †Lvjvi Rb¨ Av‡e`b Kiv n‡q‡Q| cÖevmx evsjv‡`kx‡`i
an easier and cost-effective way from Canada and
Australia, ABL has already got approval from
†iwgU¨vÝ †cÖiY mnR I e¨q mvkÖqx Kivi j‡¶¨ KvbvWv Ges
Bangladesh Bank on 24 September 2012 and 10 A‡óªwjqvq AÎ e¨vsK †iwgU¨vÝ nvDR †Lvjvi Rb¨ h_vµ‡g
October 2012 respectively and obtained 24 †m‡Þ¤^i 2012 Ges 10 A‡±vei 2012 Zvwi‡L
remittance business licenses from the authorities evsjv‡`k e¨vs‡Ki Aby‡gv`b jvf K‡i‡Q Ges mswkøó †`k
of respective countries and expecting to collect `yÕwUi KZ…©c‡¶i KvQ †_‡K jvB‡mÝ MÖnY K‡i‡Q| †`k `yÕwU
direct remittance very soon from there. To facilitate n‡Z AMÖYx e¨vsK kxNªB mivmwi †iwgU¨vÝ AvniY ïiæ
remittance service to the Bangladeshi expatriates
living in the United States of America, ABL is in
Ki‡e| hy³ivóª cÖevmx evsjv‡`kx‡`i †`vi‡Mvovq †iwgU¨vÝ
process obtaining approval for a license from the †mev †cŠu‡Q †`Iqvi j‡¶¨ AMÖYx e¨vsK wjwg‡UW GKwU
authority. wbR¯^ G·‡PÄ nvDR †Lvjvi cÖwµqv ïiæ K‡i‡Q|
A huge number of Bangladeshi expatriates prefer AÎ e¨vs‡Ki 889wU kvLvq AbjvBb †iwgU¨vÝ wWw÷ªweDkb
to send money through ABL for its better exchange †bUIqvK© _vKvq wcb †Kv‡Wi gva¨‡g †iwgU¨v‡Ýi A_©
rate and also for its online remittance distribution cwi‡kva e¨e¯’v Pvjy i‡q‡Q| cÖwZ‡hvwMZvg~jK G·‡PÄ †iU
connectivity with all of its 889 branches having cÖ`v‡bi Kvi‡Y wecyj msL¨K cÖevmx evsjv‡`kx AMÖYx e¨vsK
cash payment service over the counter by using wjwg‡U‡Wi gva¨‡g †iwgU¨vÝ †cÖiY Ki‡Q| G aviv Ae¨vnZ
Pin Code. To keep remittance flow up, ABL ivLvi j‡¶¨ AMÖYx e¨vsK †ewbwdwmqvwi/†iwgUvi‡`i Rb¨
sponsors different incentive programs for its wewfbœ ï‡f”Qv Dcnvi cÖ`v‡bi gva¨‡g DØy×KiY Kg©m~wP
valuable customers. The country wise remittance cwiPvjbv Ki‡Q| 2012 mv‡j wewfbœ †`k n‡Z AÎ e¨vs‡Ki
received by ABL in the year 2012: cÖvß †iwgU¨v‡Ýi wPÎ wb¤œiƒc:
Country-wise Remittance in 2012 Taka in Crore Country-wise Remittance in 2012 Crore Taka
Sl. No. Country Name BDT
1 Saudi Arab 4,048.54
2 UAE 1,971.03 Qatar 63.77 Italy 26.08
Oman 171.61 Others 960.53
3 Malaysia 1,666.48
Bahrain 192.24
4 Singapore 1,011.93
Saudi Arab
5 Kuwait 901.14 USA 667.65
4048.54
6 USA 667.65 Kuwait 901.14
7 Bahrain 192.24
8 Oman 171.61 Singapore 1011.93
9 Qatar 63.77
10 Italy 26.08 Malaysia 1666.48 UAE 1971.03
11 Others 960.53
Total 11,681.00
g) Fund Management and Treasury Operation Q) Znwej e¨e¯’vcbv Ges †UªRvix Kvh©µg
In keeping with international standard and the †K›`ªxq e¨vs‡Ki †Kvi wi¯‹ g¨v‡bR‡g›U MvBW jvBÝ
Central Bank's Guidelines for Core Risk Ges AvšÍR©vwZK gv‡bi mv‡_ mvgÄm¨ †i‡L AÎ
Management Policy, the Bank has restructured its e¨vs‡Ki †UªRvwi Kvh©µg‡K (1) gvwb gv‡K©U, (2) d‡ib
treasury functions into three sections i.e. 1) Money
G·‡PÄ I (3) K¨vwcUvj gv‡K©U ev BKz¨BwU †W¯‹ -G
Market, 2) Foreign Exchange (FX) and 3) Capital
Market or Equity Desk. Money Market is devoted
wZbwU As‡k cybM©Vb Kiv n‡q‡Q| gvwb gv‡K©U CRR I
to maintaining CRR & SLR and buying and selling SLR msi¶Y Ges my`wfwËK wmwKDwiwUR µq weµ‡qi
interests bearing securities. FX desk buys and mv‡_ m¤ú„³| d‡ib G·‡PÄ †W¯‹ ˆe‡`wkK gy`ªv µq
sells foreign currencies. Equity desk deals with weµq K‡i _v‡K| BKy¨BwU †W¯‹ †kqvi I BKz¨BwU‡Z
equity and shares. Overall treasury function wewb‡qvM K‡i _v‡K| †UªRvwi wWwfk‡bi mvwe©K Kvh©µg
operates through three segments i) Treasury Front
1) †UªRvwi d«›U Awdm, 2) †UªRvwi wgW Awdm I 3)
Office, 2) Treasury Mid Office and 3) Treasury
Back Office. Treasury Front Office deals with
†UªRvwi e¨vK Awdm Gi gva¨‡g m¤úvw`Z n‡q _v‡K|
operational activities, Mid Office for regulations d«›U Awdm Acv‡ikbvj Kvh©µg, wgW Awdm †i¸‡jkb
and monitoring, Back Office for settlement and I gwbUwis Ges e¨vK Awdm †m‡Uj‡g›U I
reconciliation. wiKbwmwj‡qk‡bi KvR K‡i _v‡K|
Treasury Division has been playing a very vital role e¨vs‡Ki AMÖMwZi †¶‡Î †UªRvwi wWwfk‡bi ¸iæZ¡
instrumental to the advancement of the Bank. Two
Acwimxg| cÖavb `ywU mswewae× Rgv CRR I SLR
major statutory requirements, CRR and SLR are
maintained efficiently by this Division. Asset
msi¶‡Yi KvR †UªRvwi wWwfkb `¶Zvi mv‡_ K‡i
Liability Management is the most important job _v‡K| m¤ú` I `vq e¨e¯’vcbvi gZ me‡P‡q ¸iæZ¡c~Y©
done by the Treasury. A significant share of the KvRwU †UªRvwi wWwfkb m¤úv`b K‡i| e¨vs‡Ki Av‡qi
total income of the Bank has been contributed by GKwU eo Ask gvwb gv‡K©U I d‡ib G·‡PÄ n‡Z
this Division through money market and FX
AwR©Z nq| AÎ e¨vs‡Ki †UªRvwi wWwfkb AvšÍt e¨vsK
operations. The treasury of the bank is a major
player both in the inter bank money market and gvwb gv‡K©U I d‡ib G·‡PÄ gv‡K©‡U ¸iæZ¡c~Y© f~wgKv
foreign exchange market. cvjb Ki‡Q|
Item wise income of the Treasury Division in 2011 wb‡¤œœ LvZIqvix †UªRvwi wWwfk‡bi 2011 I 2012
& 2012 is shown below: mv‡ji Avq cÖ`k©b Kiv nj:
84
Item-wise Income of Treasury
With efficient and prudent handling of Treasury, a GKwU Kvh©Ki m¤ú` I `vq e¨e¯’vcbv KwgwU e¨vs‡Ki †gvU
functioning and effective Asset Liability Committee Znwe‡ji Pvwn`v, e¨envi, my‡`i nvi wba©viY Ges m¤ú` I
regulates and articulates the Bank's total need,
exposures, rates and strategy for Asset Liability
`vq e¨e¯’vcbvi Kg©‡KŠkj wba©viY K‡i| Z`vbyhvqx †UªRvwi
Management. An effective ALM process has wWwfkb `¶Zv I weP¶YZvi mv‡_ m¤ú` I `vq e¨e¯’vcbvi
enabled the Bank to efficiently manage and project KvRwU K‡i _v‡K| G wWwfkb GKwU Kvh©Ki m¤ú` I `vq
its asset and liability flow, resulting in a smooth
flow of all funding requirement of the bank while
e¨e¯’vcbv c×wZi mvnv‡h¨ m¤ú` I `vq cÖev‡ni h_vh_
maximizing all profit opportunities. The treasury cwigv‡ci gva¨‡g Znwej cÖevn wbwðZ K‡i m‡e©v”P gybvdv
and its supporting offices have kept up their best AR©b K‡i _v‡K| †UªRvwi Ges Gi mn‡hvMx Awdm mg~‡ni
effort throughout the year and are determined to
keep it up for better management of Bank's assets
mgwš^Z cÖqv‡mi gva¨‡g e¨vs‡Ki m¤ú` I `vq e¨e¯’vcbv
and liabilities. `¶Zvi mv‡_ wbiwew”Qbœfv‡e Kiv m¤¢e n‡”Q|
h) Investment R) wewb‡qvM
The investment portfolio of the Bank at the end of 2012 mv‡j e¨vs‡Ki †gvU wewb‡qv‡Mi cwigvY wQj
the year 2012 stood at Tk. 9,241.98 crore as 9,241.98 †KvwU UvKv| c~e©eZx eQ‡i Gi cwigvY wQj
against Tk. 8,533.13 crore in the previous year,
8,533.13 †KvwU UvKv| G †¶‡Î cÖe„w×i nvi 8.30
registering a growth of 8.30 percent. The Bank has
always given emphasis on high yielding kZvsk| D”P my` cÖ`vbKvix wewb‡qv‡Mi cÖwZ eiveiB e¨vsK
investments and maintains Statutory Liquidity bRi w`‡q‡Q| evsjv‡`k e¨vs‡Ki weAviwcwW mvKz©jvi bs
Requirement (SLR) as fixed by Bangladesh Bank 11, ZvwiL 25 AvMó 2005 I bs 12, ZvwiL 25 AvMó
vide BRPD circular no. 11 dated 25 August 2005
2005 Abyhvqx e¨vsK wewae× Zvij¨ (†÷UzUwi wjKzBwWwU
and circular no. 12 dated 25 August 2005. The
portfolio of investment of the Bank as on 31 †iwkI) i¶v K‡i hv‡”Q| 2012 mv‡ji 31 wW‡m¤^i e¨vs‡Ki
December 2012 is shown below: wewb‡qvM cwiw¯’wZ wQj wb¤œiƒc:
Debentures 38.00
The advance portfolio of the Bank is well e¨vs‡Ki F‡Yi AvIZvq i‡q‡Q wewfbœ †kªYxi FY Ges Zv
diversified and covers funding to a wide spectrum wewfbœ Lv‡Z mÂvwjZ| e¨emv I wk‡íi †hme DcLv‡Z Zv
of business and industries including agro-based
and agro-processing, ship breaking, steel & mÂvwjZ n‡q‡Q †m¸‡jv n‡”Q t G¨v‡MÖv †eBRW Ges G¨v‡MÖv
engineering, paper & paper products, chemicals, cÖ‡mwms wkí, kxc †eªwKs, w÷j Ges BwÄwbqvwis, †ccvi I
construction, real estate and loans under
†ccvi †cÖvWv±m, †KwgK¨vjm, wbg©vY, Avevmb, KbwRDgvi
consumers’ credit schemes, various trading
businesses, service-holders’ loan and women †µwWU ¯‹xg, wewfbœ e¨emvwqK Kvh©µg, bvix D‡`¨v³v Ges
entrepreneurs of the country. PvKzwiRxwe FY|
86
Sector-wise position of loans and advances as on 31 wW‡m¤^i 2012 Zvwi‡L LvZ wfwËK FY I AwMÖ‡gi
31 December 2012 is shown below: weeiY wb¤œiƒc:
Taka in Crore †KvwU UvKvq
Sector-wise Loans 2012 2011 F‡Yi aiY 2012 2011
Agriculture and Fishery 864.64 727.91 K…wl I grm¨ 864.64 727.91
Jute and Jute goods 630.27 798.30 cvU I cvURvZ `ªe¨ 630.27 798.30
Transport, Storage and 150.03 174.43 cwienY, gRy` I 150.03 174.43
Communication †hvMv‡hvM
Ship Breaking 219.71 220.14 wkc †eªwKs 219.71 220.14
Textile and Readymade Garments 2,675.42 3,178.53 e¯¿ I ˆZix †cvkvK 2,675.42 3,178.53
Food and Allied Industry 863.27 985.16 Lv`¨ Ges mswkøó wkí 863.27 985.16
Construction and Engineering 185.05 425.47 wbg©vY Ges cÖ‡KŠkj 185.05 425.47
Pharmaceuticals and Chemicals 298.07 378.5 Jla I imvqb 298.07 378.55
Leather 364.10 371.19 Pvgov LvZ 364.10 371.19
Power & Energy 1,180.42 746.70 we`y¨r LvZ 1,180.42 746.70
Professional and Services 182.27 140.21 †ckv I †mev LvZ 182.27 140.21
Housing Service 572.12 449.84 Avevmb I †mev 572.12 449.84
Wholesale/ Retail Trading 2,152.78 2,254.77 cvBKvwi I LyPiv e¨emv 2,152.78 2,254.77
Personal Loan 1,569.16 1,490.40 e¨w³MZ FY 1,569.16 1,490.40
(staff loan and other personal loan)
Ab¨vb¨ 9,358.99 7,066.96
Others 9,358.99 7,066.96
Total 21,266.30 19,408.56 †gvU 21,266.30 19,408.56
The Bank attaches top-most importance to F‡Yi ¸YMZ gvb i¶vq e¨vsK m‡e©v”P ¸iæZ¡ w`‡q _v‡K|
acquisition of quality assets and carries out
evwYwR¨K I e¨emvwqK FY †`qvi mgq FY SzuwK we‡kølY
appropriate lending risk analysis while approving
commercial and trade loans to clients. The matrix h_vh_fv‡e Kiv nq| 2012 mv‡ji 31 wW‡m¤^‡i F‡Yi wPÎ
of advances of the Bank as on 31 December 2012
was as follows:
wb¤œiƒc wQj:
The comparative study of project loans between 2011 I 2012 mv‡j cÖKí F‡Yi Zzjbvg~jK wPÎ wb¤œiƒc:
2011 and 2012 is as follows:
Taka in Crore
Loan Sanctioned Loan Disbursed
Year Outstanding
No. Amount No. Amount
2011 2646 6,135.71 2581 4,797.06 4,244.00
2012 2691 7,372.00 2628 6,042.73 5,172.07
Major Industrial Loan Sectors in 2012 2012 mv‡j e¨vs‡Ki wkí F‡Yi cÖavb LvZ mg~n
Agrani Bank Limited sanctioned loans in different AMÖYx e¨vsK wjwg‡UW n‡Z wewfbœ Lv‡Z wkí FY cÖ`vb Kiv
sectors, the important ones of which are as nq| Gi g‡a¨ D‡jøL‡hvM¨ LvZmg~n wb¤œiƒc:
follows:
• †U·UvBj (w¯úwbs, DBwfs, Wvwqs, wbwUs, wdwbwks)
• Textiles (Spinning, Weaving, Dyeing,
Knitting, Finishing) • ißvwbgyLx †cvlvK wkí
• Export-Oriented Garments Industry • †WBwi I †cvjwUª
• Dairy and Poultry • wjwRs
• Leasing • j¨vÛ †W‡fjcvi
• Land Developer • wdkvwiR
• Fisheries • †eªW GÛ we¯‹zU
• Bread and Biscuit • ivBm GÛ d¬vIqvi wgjm
• Rice and Flour Mills
• eid Kj
• Ice Mills
• Forest and Allied
• d‡i÷ GÛ GjvBW
• Pharmaceuticals • dvg©vwmDwUK¨vjm
• Transportation • cwienY
• Bricks • weªK&m
• Hotel • †nv‡Uj
• Education and Poverty Alleviation • wk¶v I `vwi`ª we‡gvPb
88
• Small and Cottage Industries • ¶z`ª I KzwUi wkí
• Power Plant • we`y¨r Drcv`b †K›`ª
• Plastic and Rubber • cøvw÷K GÛ ivevi
• Cement • wm‡g›U
• Ceramic • wmivwgK
• Paper and Board Mills • †ccvi GÛ †evW© wgjm
• Tanneries • U¨vbvwiR
• Printing and Packaging • wcÖw›Us GÛ c¨v‡KwRs
• Engineering • BwÄwbqvwis
• Electrical and Electronics • B‡jKwUªK¨vj GÛ B‡jKUªwbK&m
• Computer • Kw¤úDUvi
• Food and Allied • dzW GÛ GjvBW
• Chemicals • †KwgK¨vjm
• Hospitals and Clinics • nvmcvZvj/wK¬wbK
• Salt • jeY
• Telecommunication • †Uwj KwgDwb‡Kkb
• Filling Station • wdwjs †÷kb
• Glass and Glass ware • Møvm GÛ Møvm Iq¨vi
• Commercial Building and Shopping Mall • evwYwR¨K feb I kwcsgj
Loans disbursed as on 31.12.2012 under the †µwWU jvBbmg~‡ni AvIZvq 31.12.2012 ZvwiL wfwËK
above credit lines are as follows: cÖ`Ë F‡Yi Z_¨wPÎ wb¤œiƒc:
Taka in Crore †KvwU UvKvq
Types of Fund Number of Amount
Znwe‡ji aiY cÖK‡íi msL¨v FY w¯’wZ
Projects outstanding
Own Sources 962 4942.40 wbR¯^ Drm 962 4942.40
Other Credit Lines 1,729 229.67 Ab¨vb¨ †µwWU jvBbm& 1,729 229.67
90
ABL is a lending member bank of the glorious Jatrabari Flyover Project in Dhaka.
Future plan of Bank in project loan cÖKí FY cÖ`v‡b e¨vs‡Ki fwel¨r cwiKíbv
It is expected that credit flow of Industrial sector Avkv Kiv hv‡”Q, AvMvgx‡Z e¨vsK KZ…©K wkí Lv‡Z FY
will increase by minimum 10 percent in the coming
year. Credit facilities will be extended in cÖevn AšÍZt 10 kZvsk e„w× cv‡e| AMÖvwaKvi LvZ I
establishing power plant, information technology, cwi‡ek evÜe cÖKí mg~n †hgb- we`y¨r, Z_¨ cÖhyw³, †WBwi
dairy & poultry, hospitals/clinics, solar energy,
bio-gas , effluent treatment plant and plants like
I †cvjwUª, nvmcvZvj/ wK¬wbK, †mŠikw³, ev‡qvM¨vm, eR©¨
Hybrid Hoffman Kiln (HHK) for brick field all of cwi‡kvab cøv›U Ges BUfvUvi Rb¨ Hybrid Hoffman Kiln
which are priority sectors and
ev mggv‡bi cÖhyw³m¤úbœ cøv›U ¯’vc‡b FY cÖ`vb Kiv n‡e|
environment-friendly. Furthermore, the Bank will
also finance in industrial sectors in light with GQvov miKv‡ii wewfbœ cwiKíbvi Av‡jv‡K wkí F‡Yi
Signing of participation agreement under SME Refinance Scheme of ADB between Dr. Syed Abdul Hamid, Managing
Director & CEO of ABL and Sukamal Sinha Chawdhury, GM of Bangladesh Bank
92
Business sectors: Grocery shop, cloths shop, e¨emv LvZ t gyw` †`vKvb, Kvc‡oi †`vKvb, Jl‡ai
medicinal shop, plastic and synthetic shop, shop of †`vKvb, cøvw÷K I wm‡š’wU‡Ki †`vKvb, LyPiv hš¿vs‡ki
spare parts, rods and cement business, furniture, †`vKvb, iW-wm‡g‡›Ui e¨emv, dvwb©Pvi e¨emv, K…wlRvZ
agro-business and other income generating and cY¨, Ges Ab¨vb¨ Avq Drmvwi I mvgvwRKfv‡e MÖnY‡hvM¨
socially acceptable business. e¨emv|
Industrial sectors: Textile industry, jute industry, wkí LvZ t e¯¿wkí, cvUwkí, Mv‡g©›Um, PvjKj, cøvw÷K
garments, rice mill, plastic industry, saw mill, light wkí, KivZKj, nvjKv cÖ‡KŠkj wkí, K…wl cÖwµqvKiY,
engineering, agro processing, feed mill, furniture
industry etc.
wdWwgj, dvwb©Pvi wkí BZ¨vw`|
Nature of Loan
94
the ADB refinance scheme introduced by the weZiY Kvh©µg ïiæ Kiv n‡q‡Q| G Qvov mvwe©K GmGgB
Bangladesh Bank and started financing under this Kvh©µg AviI MwZkxj Kivi j‡¶¨ cÖ‡qvRbxq Kvh©µg MÖnY
scheme. Apart from this, overall SME activities Kiv n‡e hv‡Z AMÖYx e¨vsK wjwg‡UW GmGgB Lv‡Z FY
should be geared up so that the bank can achieve
weZi‡Y GKwU Zvrch©c~Y© f‚wgKv AR©b Ki‡Z cv‡i|
a remarkable position in SME sector.
Proverty alleviation through income generation cjøx GjvKvi `wi`ª Rb‡Mvôx‡K wewfbœ cÖKvi Drcv`bgyLx I
activities is one of the strategies which the Bank Avq Drmvix Kg©Kv‡Û wb‡qvwRZ Ki‡Yi gva¨‡g Zv‡`i
has been pursuing to make financial resources
available to the rural poor to break poverty cycle mvgvwRK I A_©‰bwZK Ae¯’vi mvwe©K Dbœq‡b e¨vsK
and stimulate growth. A large number of targeted ¸iæZ¡c~Y© f‚wgKv cvjb K‡i Avm‡Q| 8 n‡Z 12 kZvsk my‡`
programmes with a loan ceiling of Tk. cj¬xi f‚wgnxb, cÖvwšÍK Pvlx, ¶z`ª D‡`¨v³v Ges Amnvq
5,000-1,00,000 and interest rate between 8-12
percent has been undertaken to reach the rural gwnjv‡`i 5,000 UvKv n‡Z 1,00,000 UvKv ch©šÍ FY
landless, marginal farmers, small enterpreneurs weZi‡Yi j¶¨gvÎv avh© Kiv n‡q‡Q| mnvqK RvgvbZ QvovB
and distressed women. No collateral security is
1,00,000 UvKv ch©šÍ FY weZiY Kiv n‡”Q|
required for loan upto TK. 1,00,000.
So far December 2012, Tk. 4,147.36 crore has ïiæ n‡Z wW‡m¤^i 2012 ch©šÍ cjøxFY wefvM n‡Z 54wU
been disbursed by the Rural Credit Division to Kg©m~wPi Aax‡b we`¨gvb 42wU Lv‡Z 37,65,744 Rb
37,65,744 borrowers in existing 42 projects under FYMÖnxZvi gv‡S 4,147.36 †KvwU UvKv FY weZiY Kiv
54 programmes. n‡q‡Q|
Comparative picture of Loan Recovery in 2011 & 2012 2011 I 2012 mv‡ji FY Av`v‡qi Zzjbvg~jK wPÎ
Total loans and advances (including staff loan) on 31.12.2012 Zvwi‡L e¨vs‡Ki †gvU FY I AMÖx‡gi
31.12.2012 stood at Tk. 21,266.30 crore. Against (Kg©Pvix FYmn) cwigvY wQj 21,266.30 †KvwU UvKv| Gi
this, the amount of classified loans was Tk. wecix‡Z †kÖYxK…Z F‡Yi cwigvY wQj 5,380.13 †KvwU
5,380.13 crore, which is 25.30 percent of total
UvKv hv †gvU FY I AMÖx‡gi 25.30 kZvsk| 2012 mv‡j
loans & advances. Classified loans recovered
amounting to Tk. 843.17 crore which was 56.21
evwl©K Av`vq j¶¨gvÎv 1500.00 †KvwUi wecix‡Z
percent of total yearly recovery target of Tk. 843.17 †KvwU UvKv †kªYxweb¨vwmZ FY Av`vq nq hv
1500.00 crore. j¶¨gvÎvi 56.21 kZvsk|
96
Comparative picture of recovery of classified and 2011 Ges 2012 m‡bi †kÖYxweb¨vwmZ I †gqv‡`vËxY© FY
overdue loans in 2011 & 2012: Av`v‡qi Zzjbvg~jK wPÎ:
Taka in Crore
Category Cash Regularization* Write-off Total Cash Regularization* Write-off Total Increase/
recovery Recovery Recovery Recovery decrease
Classified 336.80 374.05 322.36 1033.21 303.33 166.47 373.37 843.17 (190.04)
Overdue 381.00 98.55 0.00 479.55 293.18 25.10 0.00 318.28 (161.27)
Total 717.80 472.60 322.36 1512.76 596.51 191.57 373.38 1161.46 (351.30)
ii. to act as a strong participant for increasing ii. evRv‡i kw³kvjx AskMÖn‡Yi gva¨‡g evRv‡ii cwic°Zv
market depth which will ensure the proper e„w×i Rb¨ KvR Kiv hv‡Z e¨vsK, Avw_©K cÖwZôvb I
channeling of funds between banks, NBFI’s &
capital market. cyuwRevRv‡ii g‡a¨ h_vh_ Znwej cÖevn wbwðZ nq|
Objective D‡Ïk¨
i. Maximize the value creation of the shareholders i. cÖwZôv‡bi †kqvi‡nvìvi Ges MÖvnK‡`i wewb‡qvwRZ
as well as clients. g~ja‡bi m‡e©v”P g~j¨ wbwðZ Kiv|
ii. Provide a fundamental information to educate ii. wewb‡qvMKvix‡`i †gŠwjK Z_¨ cÖ`v‡bi gva¨‡g m‡PZb
the investors. Kiv|
iii. Achieve reliability to market participants by iii. evRv‡ii w¯’wZkxjZv i¶v‡_© f‚wgKv cvj‡bi gva¨‡g
acting as a safeguard for the market.
evRv‡i AskMÖnYKvix‡`i g‡a¨ Av¯’v AR©b Kiv|
iv. To boost up the small and medium investors
iv. ¶z`ª I gvSvwi wewb‡qvMKvix‡`i g‡a¨ AvMÖn I m‡PZbZv
awareness and engerness and enhance the
demand of potential securities as well.
m„wó Kiv Ges m¤¢vebvgq †kqv‡ii Pvwn`v e„w× Kiv|
v. To perform operations with high standards of v. m‡e©v”P gv‡bi e¨emvwqK ˆbwZKZvi gva¨‡g Kvh©µg
business ethics. cwiPvjbv Kiv|
Issue Management Bmy¨ e¨e¯’vcbv
Agrani Equity & Investment Limited primarily AMÖYx BKy¨BwU GÛ Bb‡f÷‡g›U wjwg‡U‡Wi cÖavbZg
focuses on Issue Management service which is the D‡Ïk¨ n‡”Q Bmy¨ e¨e¯’vcbv †mev cÖ`v‡bi gva¨‡g mvaviY
key to develop our local industry by public RbMY‡K cyuwRevRv‡i AskMÖn‡Y DØy× Kiv hv †`kxq wkí
participation through capital market. Issue weKv‡ki PvweKvwV| Bmy¨ e¨e¯’vcbv msµvšÍ wb‡¤œv³
Management functions include the following: KvR¸‡jv Gi AšÍf©~³:
98
1. Initial public offer (IPO) of shares & bonds 1. †kqvi Ges eÛ Gi cÖv_wgK MYcÖ¯Íve (AvBwcI)
2. Repeat public offer of shares and bonds 2. cybt MY cÖ¯Íve (AviwcI)
3. Issue right shares 3. ivBU †kqvi Bmy¨
4. Direct listing of shares 4. mivmwi ZvwjKvf~w³
5. Capital raising by other means 5. Ab¨vb¨ Dcv‡q g~jab msMÖn
Underwriting Ae‡jLb
Along with issue management activities, Agrani Bmy¨ e¨e¯’vcbvi cvkvcvwk AMÖYx BKz¨BwU GÛ Bb‡f÷‡g›U
Equity & Investment Limited also takes part in wjwg‡UW Ae‡jLb Kvh©µg G AskMÖnY K‡i _v‡K hv cyuwR
underwriting of securities which is a vital part in evRv‡i cwic°Zv e„w× I Av¯’v ˆZwi‡Z mnvqK Ges
building confidence & depth in capital market as †Kv¤úvwbi Rb¨ fv‡jv wewb‡qvMI e‡U|
well as potential investment for the company.
The company provides following portfolio AÎ cÖwZôvb n‡Z wb‡¤œv³ †cvU©‡dvwjI e¨e¯’vcbv †mev
management services to the customers: cÖ`vb Kiv nq:
1. Portfolio management 1. †cvU©‡dvwjI e¨e¯’vcbv
2. Margin loan facilities to the investors 2. wewb‡qvMKvix‡`i gvwR©b FY cÖ`vb|
Financial Advisory Services Avw_©K civgk© †mev
Corporate Advisory Service is one of the core Avw_©K civgk© †mev cÖ`vb Kiv GKwU gv‡P©›U e¨vs‡Ki
activities of merchant bank. Recently, BSEC has Ab¨Zg KvR| m¤cÖwZ Avw_©K civgk© †mev`v‡bi Rb¨
adopted a guideline for the financial advisory
services and accordingly Agrani Equity &
weGmwm MvBWjvBb cÖYqb Ki‡Q Ges †m †gvZv‡eK AMÖYx
Investment Limited is planning & developing the BKz¨BwU GÛ Bb‡f÷‡g›U wjwg‡UW fwel¨‡Z wb‡¤œv³
following services for forthcoming years: †mevmg~n cÖ`v‡bi j‡¶¨ KvR K‡i hv‡”Q:
Journey of Agrani SME Financing Company Limited is inaugurated by Dr. Khondoker Bazlul Hoque
Objectives D‡Ïk¨vejx
• Develop entrepreneurship and • D‡`¨v³v Dbœqb Ges kÖgwbweo ¶z`ª I gvSvix D‡`¨vM
small/medium scale labour intensive MÖnY|
enterprises.
• Increase income and employment for the • D‡`¨v³v‡`i Kg©ms¯’vb m„wó Ges Avq e„w×|
entrepreneurs. • gwnjv D‡`¨v³v Dbœqb|
• Promote women entrepreneurs.
• Generate income and support a more • Avq e„w×mn b¨vqmsMZ Avq weZi‡Y mnvqZv|
equitable income distribution.
• Arrange entrepreneurship development
• FY weZi‡Yi c~‡e© D‡`¨v³v Dbœqb I `¶Zv e„w×i
training and skill development training for Rb¨ cÖwk¶‡Yi Av‡qvRb Kiv|
the entrepreneurs before disbursing loan.
100
Geographical Coverage AvIZvf‚³ GjvKv
• Principal Branch situated at Head Office, • cÖavb Kvh©vj‡q Aew¯’Z cÖavb kvLv|
Dhaka.
• e„nËi dwi`cyi A‡ji 20wU kvLv|
• 20 Branches in greater Faridpur district.
• 20 Branches in greater Mymensingh district. • e„nËi gqgbwmsn A‡ji 20wU kvLv|
A photo session at the Annual General Meeting of Agrani SME Financing Company Limited held on 24 April 2012
Equity Share
BKz¨BwUi AbycvZ
• Minimum 10 percent in case of enterprise • †Kv¤cvwbi wewb‡qvM 1,00,000 UvKv ch©šÍ n‡j
cost up to Tk. 1,00,000. D‡`¨v³vi wbR¯^ wewb‡qvM me©wb¤œ 10 kZvsk|
• Minimum 20 percent in case of enterprise • †Kv¤cvwbi wewb‡qvM 1,00,000 UvKvi Dc‡i n‡j
cost above Tk. 1,00,000. D‡`¨v³vi wbR¯^ wewb‡qvM me©wb¤œ 20 kZvsk|
iii. Agrani Exchange House Private Limited, iii. AMÖYx G·‡PÄ nvDR cÖvB‡fU wjwg‡UW, wm½vcyi
Singapore
Agrani Exchange House Private Limited (AGEX) is AMÖYx G·‡PÄ nvDR cÖvB‡fU wjwg‡UW (AGEX), wm½vcyi,
a remittance company incorporated in Singapore GKwU †iwgU¨vÝ †Kv¤úwb hv 2002 m‡bi 4 Rvbyqvwi Zvwi‡L
on January 04, 2002 under Company Act CAP. 50. wm½vcy‡ii †Kv¤úvwb AvBb wmGwc-50 Abyhvqx wbewÜZ nq|
It is a fully owned subsidiary of Agrani Bank cÖevmx evsjv‡`kx‡`i AwR©Z A_© wm½vcyi †_‡K wbwe©‡Nœ
Limited, embarked its journey in Singapore on
evsjv‡`‡k †cÖi‡Yi myweav‡_© AMÖYx e¨vsK wjwg‡U‡Wi m¤ú~Y©
February 08, 2002 for catering the long-felt need
of hassle free transfer of money by the gvwjKvbvq 2002 m‡bi 8 †deªæqvwi G·‡PÄ nvDRwUi
Bangladeshi expatriates from Singapore. The e¨emvwqK Kvh©µg ïiæ nq| cÖwZôvbwU wm½vcy‡ii 5G, †j¤^y
Company is situated at 5A, Lembu Road, †iv‡W Aew¯’Z| cÖwZôvj‡Mœ †Kv¤úvwbwUi Aby‡gvw`Z g~jab
102
Singapore. At the initiation its authorised and wQj GmwRwW 2,00,000.00 Ges cwi‡kvwaZ g~jab wQj
paid-up capital was SGD 200000.00 and SGD GmwRwW 2,00,000.00| †Kv¤úvwbwU 11 eQi a‡i Zvi
200000.00 respectively. The Company has
completed its 11th year of operation in Singapore Kvh©µg AZ¨šÍ mdjZvi ms‡M m¤úbœ K‡i‡Q| we‡`‡k
very successfully. In view of providing remittance emevmiZ evsjv‡`kx bvMwiK‡`i‡K AviI wbKUZg Ae¯’vb
services to the Bangladeshi expatriates from their †_‡K †iwgU¨vÝ †mev cÖ`v‡bi j‡¶¨ †Kv¤úvwbwU RyjvB
nearest locations, it had opened its second branch
at Boon Lay Place in July 2010 and the third 2010 m‡b Boon Lay Place -G wØZxq kvLv Ges wW‡m¤^i
branch at Jurong East in December 2012. Despite 2012 m‡b Jurong East-G Z…Zxq kvLv Pvjy K‡i|
world economic meltdown, the Company is `yÕ†`‡ki wewa e¨e¯’v cwicvj‡bi ga¨ w`‡q wek¦e¨vcx g›`v
growing remarkably over the years under the strict
regulatory compliances with both originating and m‡Z¡I weMZ K‡qK eQ‡i †Kv¤úvwbwU D‡jøL‡hvM¨ nv‡i
destination end. AMÖMwZ mvab K‡i‡Q|
With heightened competition among the market wm½vcy‡i mgchv©‡qi †Kv¤úvwb¸‡jvi gv‡S Zxeª
players, Agrani Exchange House Private Limited cÖwZ‡hvwMZvi ga¨ w`‡q gv‡K©U wjWvi nIqvi j‡¶¨ Ges
has put in place a number of strategies to maintain
e¨emvwqK mKj †¶‡Î †UKmB cÖe„w× eRvq ivLvi R‡b¨
sustainable growth in all indicators during past
years to remain market leader in Singapore. The weMZ eQimg~‡n AMÖYx G·‡PÄ nvDR cÖvB‡fU wjwg‡UW wKQy
real time online money transfer solution of the †KŠkj Aej¤^b K‡i‡Q| AbjvBb wi‡qjUvBg gvwb UªvÝdvi
Company allows the beneficiaries to receive mjy¨k‡bi gva¨‡g †mev‡fvMKvixMY Zvr¶wYKfv‡e AMÖYx
remittance from all locations of Agrani Bank e¨vsK wjwg‡U‡Wi †h †Kvb kvLvi gva¨‡g †iwgU¨vÝ †mev
Limited instantly which greatly been encouraged
the remitters to send money through this AGEX
cv‡”Qb hv †iwgUvi‡`i AGEX nvDR Gi gva¨‡g †iwgU¨vÝ
House. The Company is continuously putting all its cvVv‡Z D×z× Ki‡Q| †Kv¤úvwbwU †i¸‡jUwi MvBW jvB‡bi
efforts to remain compliant under the regulatory mv‡_ msMwZ †i‡L Ges mg‡qi mv‡_ mv‡_ `ªæZ GwM‡q
guidelines and to develop standard of services to hvIqvi j‡¶¨ MÖvnK †mevi gvb e„w× wbwðZ Ki‡Z me©vZ¥K
ensure hefty growth in times ahead.
cÖ‡Póv Pvwj‡q hv‡”Q|
iv. Agrani Remittance House Sdn. Bhd., iv. AMÖYx †iwgU¨vÝ nvDR GmwWGb. weGBPwW.,
Malaysia gvj‡qwkqv
Agrani Remittance House Sdn. Bhd., Malaysia is a
AMÖYx †iwg‡UÝ nvDR GmwWGb. weGBPwW., gvj‡qwkqv,
fully owned subsidiary of Agrani Bank Limited
which launched its journey on January 13, 2006.
AMÖYx e¨vsK wjwg‡U‡Wi m¤ú~Y© gvwjKvbvq cÖwZwôZ GKwU
Agrani Remittance House Sdn. Bhd. is situated at mvewmwWqvix †Kv¤úvwb hv 2006 m‡bi 13 Rvbyqvwi hvÎv
14-16 (2nd floor) Jalan Hang Kasturi, 50050, Kuala ïiæ K‡i| cÖwZôvbwU 14-16 (Z…Zxq Zjv) Rjvb n¨vs
Lumpur, Malaysia. The Company got license on Kv¯‘ix, 50050, Kzqvjvjvgcyi, gvj‡qwkqvq Aew¯’Z|
v. Agrani Remittance House Canada Inc. v. AMÖYx †iwgU¨vÝ nvDR KvbvWv AvBGbwm.
Agrani Bank Limited has the plan to open and ˆe‡`wkK †iwgU¨vÝ Avni‡Y wewfbœ m¤¢vebvgq †`‡k AMÖYx
operate more number of exchange houses in e¨vsK wjwg‡UW Gi AviI K‡qKwU wbR¯^ †iwgU¨vÝ nvDR
different feasible countries to extract good number
†Lvjvi cwiKíbv i‡q‡Q| AMÖYx e¨vsK wjwg‡UW Gi 100
of remittances. In the name of ‘Agrani Remittance
House Canada Inc.’, a 100 percent owned kZvsk gvwjKvbvq 2960 †Wb‡dv_© GwfwbD, U‡i‡›Uv,
company of Agrani Bank Limited is awaiting to KvbvWvq ‘Agrani Remittance House Canada Inc.’
operate its activity after getting the approval from bv‡g e¨vs‡Ki GKwU wbR¯^ †iwgU¨vÝ nvDR hv 24 †m‡Þ¤^i
Bangladesh Bank, dated 24-09-2012. Accordingly, 2012 Zvwi‡L evsjv‡`k e¨vs‡Ki Aby‡gv`b wb‡q Kvh©µg
an office is arranged at 2960 Denforth Avenue,
Toranto, Canada and an Assistant General cwiPvjbvi A‡c¶vq Av‡Q| †m j‡¶¨ e¨vs‡Ki GKRb
Manager of the Bank has been appointed there on mnKvix gnve¨e¯’vcK‡K D³ G·‡PÄ nvD‡Ri cÖavb wbe©vnx
deputation as the CEO & Director. Kg©KZ©v I cwiPvjK wnmv‡e †cÖl‡Y wb‡qvM †`Iqv n‡q‡Q|
The Remittance House would start functioning for AwZmZ¡i KvbvWxq †Kv‡bv e¨vs‡K GKwU e¨emvwqK wnmve
collection of remittance after opening a bank †Lvjvi gva¨‡g †iwgU¨vÝ msMÖ‡ni KvR ïiæ Kiv n‡e|
account in Canada. Four Directors are appointed †iwgU¨vÝ nvDRwUi Rb¨ 4 m`‡m¨i GKwU cwiPvjbv cwil`
for the Remittance House comprising Chairman of MVb Kiv n‡q‡Q hvi m`m¨ n‡jb e¨vs‡Ki cwiPvjbv
the Board of Directors of ABL, Managing Director & cwil‡`i †Pqvig¨vb, e¨vs‡Ki e¨e¯’vcbv cwiPvjK Ges
CEO, a Deputy Managing Director and the CEO of wmBI, 1 Rb Dc-e¨e¯’vcbv cwiPvjK Ges D³ †iwgU¨vÝ
the Remittance House. nvD‡Ri wmBI|
104
vi. Agrani Exchange Company (Australia) Pty. Limited vi. AMÖYx G·‡PÄ †Kv¤cvbx (A‡óªwjqv) wcwUIqvB. wjwg‡UW
To channelize more remittance through banking cÖkvšÍ gnvmvMixq Øxc gnv‡`k A‡óªwjqv n‡Z e¨vswKs
channel from the Pacific Ocean island continent P¨v‡b‡j †iwgU¨vÝ cÖevn e„w×i j‡¶¨ evsjv‡`kx Aay¨wlZ
Australia; Agrani Bank Limited has decided to wmWbx kn‡i AMÖYx e¨vsK wjwg‡UW Zvi m¤ú~Y© wbR¯^
open an Exchange House of its own at gvwjKvbvq GKwU †iwgU¨vÝ nvDR †Lvjvi wm×všÍ MÖnY K‡i|
Bangladeshi inhabitat area in the city of Sydney. In
GZ`&‡cÖw¶‡Z e¨vsK 10 A‡±vei 2011 Zvwi‡L evsjv‡`k
view to above, Bank has got the approval from
e¨vsK Gi Aby‡gv`b MÖnY K‡i| AZ:ci e¨vsK 24 wW‡m¤^i
Bangladesh Bank as on 10 October, 2011.
Australian Securities and Investment Commission
2012 Zvwi‡L Australian Securities and Investment
(ASIC) has granted Australian Financial Services Commission (ASIC) -n‡Z Agrani Exchange
License (AFSL) on 24 December 2012 to conduct Company (Australia) Pty. Limited GB bv‡g †iwgU¨vÝ
remittance business in the name of ‘Agrani e¨emv msµvšÍ Australian Financial Services License
Exchange Company (Australia) Pty. Limited.’ (AFSL) MÖnY K‡i|
The Board of Directors of Agrani Exchange Agrani Exchange Company (Australia) Pty. Limited
Company (Australia) Pty. Limited is constituted Gi cwiPvjbv cwil‡`i m`m¨ msL¨v 4 Rb hvi g‡a¨ AMÖYx
with 4 members; among them one is nominated
e¨vsK wjwg‡U‡Wi cwiPvjbv cwil‡`i GKRb cwiPvjK,
from the Board of Directors of Agrani Bank Limited,
2 Deputy Managing Directors and one e¨vs‡Ki 2 Rb Dc-e¨e¯’vcbv cwiPvjK Ges evsjv‡`kx
Bangladeshi born Australian citizen. For es‡kv™¢yZ GKRb A‡óªjxqvb bvMwiK i‡q‡Qb| Exchange
comencing the business of the Exchange House,
House-wUi e¨emvwqK Kvh©µg `ªæZ ïiæ Kivi Rb¨
meanwhile a Deputy General Manager has been
nominated as CEO of Agrani Exchange Company B‡Zvg‡a¨ e¨vs‡Ki GKRb Dc-gnve¨e¯’vcK‡K wmBI
(Australia) Pty. Limited. Office for the Exchange wnmv‡e g‡bvbxZ Kiv n‡q‡Q| B‡Zvg‡a¨ kc bs-2, 168
House has been opened at shop No. 2, 168
njWb wóªU, †j‡K¤^v, GbGm WweøD 2195, wmWbx,
Holdon Street, Lekemba, NSW-2195, Sydney,
Australia. A‡óªwjqv‡Z G·‡PÄ nvD‡Ri Rb¨ Awdm †bqv n‡q‡Q|
106
f) Capital Adequacy Ratio P) g~jab chv©ßZv AbycvZ
As per provisions of Section 13(2) of the Bank e¨vsK †Kv¤úvwb AvBb 1991 mv‡ji aviv 13(2) Ges
Companies Act 1991 and BRPD circulars 01, 10, evsjv‡`k e¨vs‡Ki weAviwcwW mvKz©jvi (bs 01, 10, 05 I
05 and 11 dated 08 January 1996, 24 November
11, ZvwiL h_vµ‡g 8 Rvbyqvwi, 1996, 24 b‡f¤^i 2002,
2002, 14 May 2007 and 14 August 2008
14 †g 2007 Ges 14 AvMó 2008) Abyhvqx mKj
respectively issued by Bangladesh Bank,
adequate capital needs to be maintained by all evwYwR¨K e¨vsK‡K chv©ß g~jab AbycvZ i¶v Ki‡Z nq|
commercial banks to operate the banking e¨vs‡Ki msiw¶Ze¨ †Kvi g~ja‡bi cwigvY 1,072.77
activities smoothly. The Bank maintained core †KvwU UvKv hvi wecix‡Z e¨vsK msi¶Y K‡i‡Q
capital of Tk. (1,319.54) crore against requirement (1,319.54) †KvwU UvKv| RWA Gi 5 kZvs‡ki ¯’‡j
of Tk. 1,072.77 crore (-6.15 percent of RWA of Tk. (21,455.30 †KvwU UvKv RWA) -6.15 kZvsk i‡q‡Q|
21,455.30 crore against requirement of 5 percent
†gvU msiw¶Ze¨ g~jab (†Kvi g~jab + mvwcø‡g›Uvwi g~jab
of RWA) and total capital (Tier-1+Tier-2+Tier-3) of
+ AwZwi³ mvwcø‡g›Uvwi g~jab) 2,145.53 †KvwU UvKvi
Tk. (1,319.54) crore against requirement of Tk.
2,145.53 crore (-6.15 percent of RWA of Tk.
wecix‡Z msiw¶Z g~ja‡bi cwigvY (1,319.54) †KvwU
21,455.30 crore against requirement 10.00 UvKv| wewa †gvZv‡eK 400.00 †KvwU A_ev RWA Gi
percent of RWA or Tk. 400.00 crore, whichever is 10.00 kZvsk Gi g‡a¨ †hwU †ewk Zvnvi mgcwigvY g~jab
higher). Thus, there was a total capital shortfall of msi¶‡Yi wb‡`©kbv i‡q‡Q| Z`vbyhvqx g~jab NvUwZi
Tk. 3,465.07 crore with a core capital of Tk. cwigvY 3,465.07 †KvwU UvKv Ges Ô†Kvi K¨vwcUvjÕ Gi
(1,319.54) crore. cwigvY (1,319.54) †KvwU UvKv|
Details of capital adequacy are given below: g~jab ch©vßZvi we¯ÍvwiZ weeiY wb‡P †`qv n‡jv:
Taka in Crore †KvwU UvKvq
Particulars 2012 2011 weeiY 2012 2011
Total Risk Weighted Assets 21,455.30 21,411.28 †gvU wi¯‹ I‡q‡UW G¨v‡mUm 21,455.30 21,411.28
Minimum Required Capital b~¨bZg g~jab
(10% of Risk Weighted Assets ) 2,145.53 2,141.13 (wi¯‹ I‡q‡UW G¨v‡m‡Ui 10%) 2,145.53 2,141.13
Minimum required core capital iw¶Ze¨ b~¨bZg †Kvi K¨vwcUvj
( 5% of RWA) 1,072.77 1,070.56 (AviWweDG 5%) 1,072.77 1,070.56
Actual Capital Held: (1,319.54) 2,353.19 g~jab iw¶Z (1,319.54) 2,353.19
Core Capital (Tier – I) (1,319.54) 1,687.72 †Kvi K¨vwcUvj (Uvqvi-1) (1,319.54) 1,687.72
Supplementary Capital (Tier – II) 0.00 665.47 mvwcø‡g›Uvwi K¨vwcUvj (Uvqvi-2) 0.00 665.47
Total Capital surplus/shortfall (3,465.07) 212.06 †gvU DØ„Ë g~jab/NvUwZ (3,465.07) 212.06
Capital Adequacy Ratio (%): -6.15% 10.99% g~jab ch©vßZv AbycvZ (%) -6.15% 10.99%
Core Capital (against standard of †Kvi K¨vwcUvj
minimum 5%) -6.15% 7.88% (5% cÖ‡qvRbxq) -6.15% 7.88%
Supplementary Capital 0.00% 3.11% mvwcø‡g›Uvwi K¨vwcUvj 0.00% 3.11%
Tier-1 (Core Capital) †Kvi K¨vwcUvj (Uvqvi-1)
Fully Paid-up Capital 991.29 901.18 cwi‡kvwaZ g~jab 991.29 901.18
Statutory Reserve 413.98 413.98 wewae× msiw¶Z Znwej 413.98 413.98
General Reserve 0.50 0.50 mvaviY msiw¶Z Znwej 0.50 0.50
Retained Earnings (1,454.35) 497.83 iw¶Z gybvdv (1,454.35) 497.83
Sub-Total: (48.58) 1,813.49 Dc-mgwó (48.58) 1,813.49
Total Eligible Tier-2 Capital 620.79 665.47 †gvU BwjwRej (Uvqvi-2) g~jab 620.79 665.47
Tier-3 Supplementary Capital - - mvwcø‡g›Uvwi K¨vwcUvj (Uvqvi-3) - -
Total Supplementary †gvU mvwcø‡g›Uvwi K¨vwcUvj
(Tier 2+ Tier 3) Capital 0.00 665.47 (Uvqvi-2+ Uvqvi-3) 0.00 665.47
Total Eligible Capital (1,319.54) 2,353.19 †gvU BwjwRej g~jab (1,319.54) 2,353.19
108
Overall Automation c~Yv©½ A‡Uv‡gkb
Agrani Bank Limited started using computer ¯^vaxbZv-c~e© mgq †_‡K AMÖYx e¨vsK wewfbœ e¨vswKs
technology for automation of its various banking
Kvh©µ‡gi A‡Uv‡gk‡bi Rb¨ Kw¤úDUvi cÖhyw³i e¨envi ïiæ
operations since pre-liberation. Many important
K‡i‡Q| m¤úªwZ e¨vs‡Ki eûwea ¸iæZ¡c~Y© KvR A‡Uv‡gk‡bi
jobs of the bank are currently automated. The
Information Technology and MIS Division of the
AvIZvq Avbv n‡q‡Q| e¨vs‡Ki Z_¨cÖhyw³ wefvMwU
bank responsible for managing automation of A‡Uv‡gkb e¨e¯’vcbv Ges cwiPvjb Kv‡R wb‡qvwRZ| G
banking operations, is well equipped with IBM wefvMwU cÖwkw¶Z Ges `¶ Kgx©, AZ¨vaywbK gvB‡µv
Midrange computers, very High End Servers and Kw¤úDUvi, D”P ¶gZvm¤úbœ mvfv©i Ges IBM Mid Range
latest microcomputers and stuffed with trained and Kw¤úDUvi Øviv mymw¾Z| AvBwU wefv‡Mi AwaKvsk KvR
experienced personnel. The Bank uses its
cÖ¯‘ZKi‡Yi †¶‡Î AMÖYx e¨vsK Zvi wbR¯^ mdUIq¨vi
in-house software for processing most of the jobs
performed in IT and MIS Division. The major jobs
e¨envi K‡i _v‡K| G wefvMwU †h mKj Kvhv©ejx cwiPvjbv
handled in ITand MIS Division are: K‡i _v‡K †m¸‡jv n‡”Q:
The Bank has a good team of highly skilled cÖavb Kvhv©jq, AvÂwjK Kvhv©jq Ges kvLv¸‡jv‡Z KvwiMwi
manpower both in technical and business areas to Kvhv©ejx cwiPvjbvi j‡¶¨ AMÖYx e¨vs‡Ki my`¶ wUg wbijm
handle IT operation deployed in Head Office,
KvR K‡i P‡j‡Q| †hvMv‡hvM I Z_¨cÖhyw³i Kvhv©ejx
Zonal Offices and in branches. The Bank has
recruited a large number of manpower exclusively
myôzfv‡e cwiPvjbvi Rb¨ e¨vsK chv©ß Rbej wb‡qvM
for ICT operation. Those resources are being K‡i‡Q| cÖavb Kvhv©j‡qi AvBwU wefv‡M Ges AvÂwjK
deployed in Head Office IT and MIS Division and in Kvhv©j‡q G Rbej wb‡qvM Kiv n‡q‡Q hv‡Z Zviv Z…Yg~j
zonal offices from where they can monitor and chv©‡qi AvBwmwU Kvh©µg¸‡jv Z`viwK I wbqš¿Y Ki‡Z
control the various ICT operations at the grass root
cv‡i| mswkøó AvBwU Kg©KZ©vMY‡K h‡_vchy³ cÖwk¶Y cÖ`vb
level. The relevant employees are provided with
adequate training to cater all kinds of needs Kiv n‡q _v‡K hv‡Z Zviv AvBwmwU mswkøó mKj cÖ‡qvRb
related to ICT. A majority of manpower of the bank †gUv‡Z cv‡i| e¨vs‡Ki AwaKvsk Rbkw³ AvBwU msµvšÍ
has got IT literacy and training - basic and higher †gŠwjK Ávb I wewfbœ †Kv‡m©i Dci cÖwk¶YcÖvß| AvBwUi
training on IT courses are offered throughout the
Dci e¨vs‡K mviv eQiB cÖv_wgK I D”PZi cÖwk¶Y
year. The bank has formulated its ICT policy as per
Bangladesh Bank Guidelines in which proper
cwiPvwjZ n‡”Q| evsjv‡`k e¨vs‡Ki wb‡`©kbv Abyhvqx AMÖYx
directives have been provided for each and every e¨vsK wjwg‡UW Zvi AvBwmwU cwjwm `vuo Kwi‡q‡Q †hLv‡b
operation of the bank related to ICT. AvBwmwU m¤úwK©Z mywbw`©ó wb‡`©kbv i‡q‡Q|
110
replica of data center is established. The hardware kvLv¸‡jv wbqš¿Y Kivi j‡¶¨ DRS Ges WvUv †m›Uv‡ii
related to data center and DRS has been set up Rb¨ e¨vs‡K Dchy³ gv‡bi nvW©Iq¨vi ¯’vcb Kiv n‡q‡Q|
with a capacity to handle all the online branches of
GQvov e„nr cwim‡i MÖvnK †mev cÖ`v‡bi j‡¶¨ Oracle
the Bank. Again, to handle such a big customer
base, Oracle database was chosen. A Wide Area
WvUv‡eR Pvjy Kiv n‡q‡Q| 160wU kvLvq Wide Area
Network (WAN) covering 160 branches was setup Network (WAN) ¯’vcb K‡i AbjvBb e¨vswKs †mev cÖ`vb
to facilitate online service. Two redundant network Kiv n‡”Q| G mKj kvLvi cÖwZwU‡Z `ywU †bUIqv©K jvBb
lines were setup for all these branches. ¯’vcb Kiv n‡q‡Q|
The Core Banking Software (CBS) has four major †Kvi e¨vswKs mdUIq¨v‡ii (CBS) PviwU ¸iæZ¡c~Y©
functional areas. These are: cÖv‡qvwMK w`K i‡q‡Q| G¸‡jv n‡jv:
a) Retail Module: All the functionalities of general K) wi‡UBj gwWDj: mvaviY e¨vswKs Gi mg¯Í Kvhv©ejx
banking like SB, CD, FDR, SND, APS, ABS, †hgb- SB, CD, FDR, SND, APS, ABS, DD,
DD, PO/PS etc. are covered under this PO/PS BZ¨vw` G gwWD‡ji AvIZvf~³|
module.
b) Credit module: All kinds of credit operation like L) †µwWU gwWDj: G gwWDjwU e¨envi K‡i mKj ai‡Yi
CC, OD, consumer loan, staff loan are †µwWU msµvšÍ KvR †hgb- wmwm, IwW, †fvM¨cY¨ FY,
handled using this module. Kg©Pvix FY BZ¨vw` cwiPvjbv Kiv nq|
c) Trade finance: All activities relating to foreign M) †UªW wdb¨vÝ: G gwWD‡ji AvIZvq me ai‡Yi
exchange can be handled under this module. ˆe‡`wkK †jb‡`b msµvšÍ KvR Kiv hvq|
d) Treasury module: All treasury functions i.e. N) †UªRvwi gwWDj: †UªRvwi msµvšÍ mKj Kvhv©ejx †hgb-
security, money market, and investment are wmwKDwiwU, gvwb gv‡K©U Ges Bb‡f÷‡g›U GB
covered under this module. Also, centralized gwWD‡ji AšÍf©~³| ZvQvov cÖavb Kvhv©j‡qi wRGj
Head Office GL is incorporated with Treasury
GB gwWD‡ji mv‡_ mshy³|
Module.
All the modules of T24 have been customized as evsjv‡`k e¨vs‡Ki w`K-wb‡`©kbvi wbwi‡L Ges AMÖYx
per existing business processes and rules of the
e¨vs‡Ki we`¨gvb bxwZgvjv Abyhvqx T24 Gi mg¯Í gwWDj
bank considering the guidelines of Bangladesh
bank. Kv÷gvBRW Kiv n‡q‡Q|
For all kinds of automation activities, the Bank has A‡Uv‡gk‡bi wewfbœ Kvh©µg ev¯Íevq‡bi j‡¶¨ e¨vsK wewfbœ
deployed human resources in the major areas †¶‡Î Zvi we`¨gvb `¶ Rbkw³ †_‡K cÖ‡qvRbxq †jvKej
from the existing manpower. Presently,, two teams wb‡qvM K‡i‡Q| eZ©gv‡b weR‡bm wUg Ges †UKwbK¨vj wUg
i.e. business team and technical team are working.
G iKg `yÕwU wUg G‡Z KvR Ki‡Q| mvaviY e¨vswKs, AwMÖg,
The business team was formed choosing experts
from each and every functional area i.e. general
ˆe‡`wkK evwYR¨, wdb¨vÝ I †UªRvwii Kv‡R AwfÁ Rbkw³
banking, credit, trade finance and treasury. The wb‡q G weR‡bm wUgwU MwVZ| †UKwbK¨vj wUgwU MwVZ
technical team comprised of the experts of n‡q‡Q nvW©Iq¨vi, WvUv‡eR, Acv‡iwUs wm‡÷g, †bUIqvK© I
hardware, database, operating system, network, AbjvBb e¨vswKs mdUIq¨v‡ii `¶ †jvKe‡ji mgš^‡q|
online banking software. For capacity building, `¶Zv e„w×i j‡¶¨ Dfq wUg‡K Dchy³ cÖwk¶Y cÖ`vb Kiv
they were given adequate training to make them
capable of handling all the activities to run a core
n‡q‡Q †hb Zviv †Kvi e¨vswKs mdUIq¨vi wbfz©jfv‡e
banking software smoothly. cwiPvjbv Ki‡Z m¶g nq|
Gradually, all the branches of the bank will be µgvMZfv‡e e¨vs‡Ki mKj kvLv‡K AbjvBb e¨e¯’vi
brought under online system. Introduction of T24 AvIZvq Avbv n‡e| T24 mdUIq¨v‡ii gva¨‡g MÖvnK‡`i‡K
software will ensure services like internet banking,
ATM banking, mobile banking etc. to the B›Uvi‡bU e¨vswKs, GwUGg e¨vswKs, †gvevBj e¨vswKs
customers. BZ¨vw`i g‡Zv DbœZ †mev cÖ`vb Kiv n‡e|
SWIFT myBdU&
Agrani Bank Limited provides SWIFT (Society for Avg`vwbKviK, ißvwbKviK I †iwgU¨vÝ †cÖiK‡`i `¶ †mev
Worldwide Inter-bank Financial Telecommunication) cÖ`v‡bi D‡Ï‡k¨ AMÖYx e¨vsK wjwg‡UW ˆe‡`wkK gy`ªv wewbgq
facility in its 35 branches to offer services relating to I ˆe‡`wkK evwY‡R¨i Rb¨ 35wU kvLvq myBdU& (†mvmvBwU di
Foreign Exchange/Foreign Trade Transactions (both
Iqvì©IqvBW B›Uvi-e¨vsK wdbvwÝqvj †UwjKwgDwb‡Kkb)
import and export) and remittance.
cÖeZ©b Kiv n‡q‡Q|
e-GP B-wRwc
The government of Bangladesh has introduced evsjv‡`k miKv‡ii cwiKíbv gš¿Yvj‡qi wmwcwUBD
e-GP (Electronic Government Procurement) (†m›Uªvj cÖwKDi‡g›U †UKwbK¨vj BDwbU) Gi Aax‡b
program under CPTU (Central Procurement B-wRwc (B‡j±«wbK Mfb©‡g›U cÖwKDi‡g›U) †cÖvMÖvg Pvjy
Technical Unit) of Planning ministry. The K‡i‡Q| Gi d‡j †`ke¨vcx AMÖYx e¨vs‡Ki 86wU wbav©wiZ
contractors of 4 organizations i.e. (1) Roads & kvLvq †iwR‡÷ªkb wd, bevqb wd, †UÛvi WKz‡g›U wd, e¨vsK
Highways,(2) LGED,(3) BWDB and (4) REB can M¨vivw›U BZ¨vw` cÖ`v‡bi gva¨‡g moK I Rbc_ Awa`ßi,
112
participate in e-tendering by depositing their GjwRBwW, weWweøDwWwe Ges AviBwe G 4wU ms¯’vi
registration fee, renewal fee, tender document fee,
wVKv`viMY B-†UÛvwis G Ask wb‡Z cvi‡Qb| e¨vs‡K
bank guarantee etc. from designated 86 branches
of the bank all over Bangladesh. A formal Kg©iZ wecyj msL¨K Kg©Pvix‡K B-wRwci Dci GKwU D”P
high-level training on e-GP has been provided to a gvbm¤úbœ cÖwk¶Y cÖ`vb Kiv n‡q‡Q| RvwZ‡K †mev cÖ`v‡bi
large number of employees of the bank. The bank
cÖwZkÖæwZ wb‡q e¨vsK †¯^”Qvq B-wRwc †cÖvMÖv‡g AskMÖnY
has voluntarily participated in e-GP program to
meet its commitment to serve the nation. K‡i‡Q|
Website I‡qemvBU
Agrani Bank Limited has an informative website AMÖYx e¨vsK wjwg‡U†Wi GKwU Z_¨ cÖ`vbg~jK I‡qemvBU
containing description of its various products, i‡q‡Q †hLvb †_‡K MÖvnKMY e¨vsK m¤ú‡K© wewfbœ Z_¨
services, annual accounts, citizen's charter and
†hgb: e¨vs‡Ki wewfbœ cÖWv±, †mevmg~n, evrmwiK wnmve,
other up-to-date information about the Bank. The
wmwU‡Rb PvUv©i Ges nvjbvMv` Z_¨ cv‡eb|
website www.agranibank.org serves as a primary
www.agranibank.org G I‡qemvBUwU e¨vs‡Ki cÖv_wgK
source of information of the bank. Current news on
recruitment, tender etc. of the bank can also be Z‡_¨i Drm wnmv‡e KvR Ki‡Q| e¨vs‡Ki wb‡qvM, †UÛvi
found on this website. BZ¨vw`i mv¤úªwZK LeivLiiI G I‡qemvB‡U cvIqv hv‡”Q|
ATM GwUGg
In order to be up-to-date with the fast advancing AMÖYx e¨vsK wjwg‡UW `ªæZ AMÖmigvb Z_¨cÖhyw³i mv‡_
information technology, Agrani Bank Limited wb‡R‡K nvjbvMv` Ki‡Yi j‡¶¨ 2002 mv‡j MÖvnK‡`i
started ATM (Automated Teller Machine) service in
R‡b¨ ATM (Automated Teller Machine) mvwf©m Pvjy
2002 for the clients which is known as E-Cash
Debit Card. With this, ATM Card holders are
K‡i, hv E-Cash †WweU KvW© bv‡g cwiwPZ| Gi gva¨‡g
enjoying the benefit of 24 hours cash withdrawal evrmwiK bvggvÎ mvwf©m Pv‡R©i wewbg‡q GwUGg KvW©
by paying a nominal annual service charge. †nvìviMY w`bivZ 24 N›Uv bM` A_© D‡Ëvj‡bi myweav †fvM
Currently, ABL has been providing this service Ki‡Qb| eZ©gv‡b AMÖYx e¨vsK wjwg‡UW Gwe e¨vsK wjwg‡UW
using 225 shared ATM booths throughout the Gi mv‡_ †hŠ_fv‡e mviv †`‡k 225wU GwUGg ey‡_i gva¨‡g
country in collaboration with AB Bank Ltd. GB †mev w`‡q Avm‡Q|
To run ATM service by ABL’s own source & m¤cÖwZ e¨vs‡Ki m¤ú~Y© wbR¯^ e¨e¯’vcbvq I cwiPvjbvq
management, wide spread initiatives have been GwUGg mvwf©m cÖeZ©‡bi j‡¶¨ e¨vcK c`‡¶c MÖnY Kiv
taken. After scrutinizing the viabilities, in the first n‡q‡Q| GB cwiKíbv ev¯Íevq‡bi cÖ_g c`‡¶c wn‡m‡e
phase, ABL plans to start 100 ATM booths in m¤¢ve¨Zv hvPvB-evQvB KiZt GKwU c~Y©v½ Kg©cwiKíbv
different branches & prominent places of which 41 nv‡Z †bqv n‡q‡Q| Gi cÖ_g chv©‡q XvKv gnvbM‡ii 41wU,
booths will be in Dhaka city and 12 booths will be
PÆMÖv‡gi 12wU kvLvmn mviv †`‡k wewfbœ kvLvq Ges
¸iæZ¡c~Y© ¯’v‡b cÖv_wgKfv‡e †gvU 100wU GwUGg ey_ mvwf©m
in Chittagong. Besides, ABL plans to enrich ATM
Pvjy Kiv n‡e| cvkvcvwk VISA Card, Master Card Ges
booth service consisting Visa Card, Master Card
Credit Card mn GwUGg ey_ mvwf©m mg„×Ki‡Yi
and Credit Card facilities. cwiKíbvI i‡q‡Q|
Agrani bank Limited is dedicated to the nation to MÖvnK‡`i cÖhyw³ wbf©i AvaywbK e¨vswKs mvwf©m cÖ`v‡bi
provide technology based modern banking j‡¶¨ AMÖYx e¨vsK wjwg‡UW RvwZi †mevq cÖwZkÖæwZe×|
services to the customers and relentlessly tries to Avgv‡`i RvZxq j¶¨ Ôwfkb 2021Õ AR©‡b Ae`vb ivL‡Z
contribute to the process of achieving our national
AMÖYx e¨vs‡Ki Ae¨vnZ cÖ‡Póv i‡q‡Q|
goal as enshrined in ‘Vision 2021’.
1. Lowering transaction costs both for the 1. MÖvnK Ges e¨vsK Df‡qi †jb‡`‡b LiP Kg‡e|
customers and bank 2. GKwU e„nr AÂj‡K b~¨bZg Li‡P Avw_©K †mevi
2. Help cover a large geographical area with AvIZvq Avbv m¤¢e n‡e|
minimum cost
3. cÖkvmwbK e¨q n«vm cv‡e|
3. Cutting administrative overhead off
4. Creating financial awareness 4. Avw_©K m‡PZbZv ˆZwi‡Z mnvqK n‡e|
114
The project would be implemented in phases. In cÖKíwU chv©qwfwËK cwiPvwjZ n‡e| cvBjU cÖKíwU
the first phase Agrani in collaboration with DOER Ô`yqviÕ (DOER) Gi mn‡hvwMZvq AMÖYxi wb‡¤œv³ `yÕwU
has planned to run the pilot projects in two areas
under following two branches of ABL:
kvLvi gva¨‡g ewY©Z GjvKvq Kvh©µg cwiPvjbv Ki‡e:
i. Pangsha branch: Habashpur Bazar of 1. cvskv kvLv: nvevkcyi evRvi, Dc‡Rjv- cvskv,
Pangsha upazila under the district of †Rjv-ivRevwo|
Rajbari.
ii. Shaistagonj Branch: Noapara Bazar of 2. kv‡q¯ÍvMÄ kvLv: †bvqvcvov evRvi, Dc‡Rjv-
Shaistagonj upazila under the district of kv‡q¯ÍvMÄ, †Rjv-nweMÄ|
Habigonj.
Through this project, the Directorate for Secondary cÖKíwUi gva¨‡g gva¨wgK I D”P wk¶v Awa`ßi 1993 mb
& Higher Secondary Education has been giving n‡Z A`¨vewa mviv‡`‡k AMÖYx e¨vs‡Ki 250wU kvLvi
away stipend to the students enlisted with
SEQAEP through 250 branches of Agrani Bank
gva¨‡g SEQAEP-Gi ZvwjKvf~³ QvÎ-QvÎx‡`i‡K Dce„wË
Limited across the country since 1993. The main weZiY K‡i Avm‡Q| GB cÖK‡íi g~j j¶¨ n‡jv gva¨wgK
objective of this project is to ensure that students ¯Í‡ii QvÎ-QvÎxiv †hb Avw_©K Kvi‡Y wk¶v½Y †_‡K S‡i bv
at Secondary level do not drop out of education. At
c‡o| eZ©gv‡b GB cÖK‡íi AvIZvq †gvU DcKvi‡fvMx
present, the number of students receiving the
benefit under this project is ten lac. QvÎ-QvÎxi msL¨v 10 jvL|
By receiving stipend money through bank, the e¨vs‡Ki gva¨‡g Dce„wËi UvKv MÖn‡Yi ga¨ w`‡q ¯‹z‡ji
students are getting introduced and used to QvÎQvÎxiv e¨vswKs e¨e¯’vi mv‡_ cwiwPZ I Af¨¯Í n‡q
banking system which brings momentum to the DV‡Q hv AMÖYx e¨vsK wjwg‡UW Gi ¯‹zj e¨vswKs Kvh©µg‡K
school banking program of ABL. In this project †eMevb Ki‡Q| GB cÖK‡íi AvIZvq wek¦e¨vs‡Ki A_©vq‡b
World Bank’s fund for, the stipend money is
Ges evsjv‡`k e¨vs‡Ki gva¨‡g Dce„wˇfvMx QvÎ-QvÎx‡`i
deposited through Bangladesh Bank to the
Rb¨ AMÖYx e¨vs‡Ki cÖavb kvLvq cwiPvwjZ SEQAEP-Gi
SEQAEP account maintained with Principal
Branch of ABL. To distribute the money directly to wnmv‡e A_© Rgv nq| cÖavb kvLv D³ A_© AvBwewmG-Gi
the beneficiaries, Principal Branch sends the gva¨‡g mswkøó kvLvmgy‡n Zv‡`i ¯^ ¯^ AvÂwjK Kvh©vj‡qi
money through IBCA to the concerned branches mvnv‡h¨ †cÖiY K‡i hv kvLv n‡Z mivmwi myweav‡fvMx‡`i
through respective Zonal offices. To extend the g‡a¨ weZiY Kiv nq| 2017 mvj ch©šÍ cÖKíwUi †gqv`
project up to 2017 is under process through which e„w×i cÖ¯Íve cÖwµqvaxb i‡q‡Q †hLv‡b cÖwZeQi ch©vqµ‡g
the number of schools & students and financing ¯‹z‡ji I QvÎ-QvÎx‡`i msL¨v Ges A_©vq‡bi cwigvY e„w×
amount will increase gradually. cv‡e|
Newsletter wbDR‡jUvi
Quarterly periodical of this Bank ‘Newsletter’ I‡qemvB‡U GB e¨vs‡Ki ˆÎgvwmK ÔwbDR‡jUviÕ mvgwqKx
published in website that reveals the internal news cÖKvk Kiv nq| G‡Z e¨vs‡Ki Af¨šÍixY Leimn
of the bank along with burning issues of the †`k-we‡`‡ki ¸iæZ¡c~Y© A_©‰bwZK Z_¨ cÖKvwkZ nq|
financial world.
Annual Book regarding the activities of banks e¨vsK I Avw_©K cÖwZôv‡bi Kvh©vejx
and financial institutions kxl©K evwl©K cyw¯ÍKv
This statement is prepared on the basis of brief e¨vs‡Ki evwl©K hveZxq Kvh©µ‡gi mvi-ms‡¶c wb‡q G
account of total activities of the Bank which is sent
weeiYxwU ˆZwic~e©K evsjv‡`k e¨vs‡K †cÖiY Kiv nq| hv
to Bangladesh Bank. Bangladesh Bank then sends
it to the Bank and Financial Institution/Division, evsjv‡`k e¨vsK c‡i MYcÖRvZš¿x evsjv‡`k miKv‡ii A_©
Ministry of finance of The Peoples Republic of gš¿Yvj‡qi, e¨vsK I Avw_©K cÖwZôvb wefv‡M †cÖiY K‡i|
Bangladesh. Ministry then publishes the above
mentioned statement in a pamphlet named gš¿Yvjq cÖvß weeiYxwU e¨vsK I Avw_©K cÖwZôvbmg~‡ni
‘Activities of Bank & Financial Institutions’. Kvh©vejx kxl©K cyw¯ÍKvq cÖKvk K‡i|
i) External Audit
1) ewnt wbix¶v
116
To instruct, monitor and modify audit activities; the wbix¶v Kvh©µg‡K h_vh_ wb‡`©kbv, Z`viwK I
Board Audit Committee has been re-arranged mg‡qvc‡hvMx Kivi j‡¶¨ 5 Rb cwiPvj‡Ki mgš^‡q †evW©
consisting of 5 Directors as Committee Member. AwWU KwgwU cybM©Vb Kiv n‡q‡Q| †evW© AwWU KwgwU
The Board Audit Committee reviews the internal Af¨šÍixY I ewnt wbix¶v cÖwZ‡e`b ch©v‡jvPbv KiZt
and external audit reports and ensures that the
B›Uvibvj K‡›Uªvj wm‡÷‡g †Kvb NvUwZ A_ev ÎæwU _vK‡j
management takes effective measures in case any
deficiency or lapses is found in the internal control
e¨e¯’vcbv KZ…©c¶ hv‡Z Kvh©Kwi e¨e¯’v MÖnY K‡i Zv wbwðZ
system. K‡i _v‡K|
The Bank has been coducting 'Risk Based Internal e¨emvwqK SzuwK cwigvc Ges kvLvq D™¢~Z SzuwKmg~n
Audit' (RBIA) through analyzing Core Risk factors wbqš¿‡Yi j‡¶¨ e¨vs‡Ki ˆ`bw›`b Kvh©µ‡gi †Kvi wi¯‹
in the daily activities of the Bank to assess the d¨v±img~n we‡kølYc~e©K e¨vs‡K Ôwi¯‹ †eBRW B›Uvibvj
business risk as well as control risk associated AwWUÕ (AviweAvBG) cwiPvwjZ n‡”Q| cÖwZôv‡b GKwU
with the branches. In setting out a strong internal
kw³kvjx Af¨šÍixY wbqš¿Y KvVv‡gv MV‡bi j‡¶¨ e¨vsK
control framework within the organization, the
Bank has already brought out its Internal Control
GKwU B›Uvibvj K‡›Uªvj g¨vbyqvj ˆZwi K‡i‡Q hv ch©vqµ‡g
Manual. It focuses on monitoring the functions of I wbqwgZfv‡e cÖavb Kvh©vj‡qi wewfbœ wefvM Ges e¨vs‡Ki
various departments/divisions of Head Office and kvLvmg~‡ni Kvh©µg gwbUwis Kivi j‡¶¨ w`K wb‡`©kbv
branches of the Bank periodically on regular basis. cÖ`vb Ki‡Q|
In 2012 Audit & Inspection Division conducted wbix¶v I cwi`k©b wefvM 2012 m‡b AÎ e¨vs‡Ki 510wU
comprehensive audit in 510 branches, 27
Corporate Branches, 13 Authorized Dealer
kvLv, 27wU K‡c©v‡iU kvLv, 13wU A‡_vivBRW wWjvi kvLv,
Branches, 15 Zonal Offices and 3 Divisions/ 15wU †Rvbvj Awdm Ges cÖavb Kvh©vj‡qi 3wU wWwfk‡b
Departments at Head Office of the Bank. In the mgwš^Z wbix¶v Kvh©µg cwiPvjbv K‡i‡Q| GKB eQ‡i
same year the internal audit team carried out 12
Af¨šÍixY wbix¶v `j wewfbœ kvLvq wewfbœ Bmy¨i Dci wfwË
spot audits and special audits in different branches
on different issues. Total number of audits were K‡i 12wU ¯úU AwWU Ges we‡kl AwWU cwiPvjbv K‡i‡Q|
580 during the year 2012. 2012 m‡b †gvU wbix¶vi msL¨v wQj 580wU|
Each year the Audit & Inspection Division sets out wbix¶v I cwi`k©b wefvM cÖ‡Z¨K eQ‡ii Rb¨ GKwU wbix¶v
an audit plan (internal) for the year which is cwiKíbv (Af¨šÍixY) cÖYqb K‡i hv †evW© AwWU KwgwU
approved by the Board Audit Committee. Annual KZ…©K Aby‡gvw`Z nq| 2013 m‡bi Aby‡gvw`Z wbix¶v
Audit plan for the year 2013 approved by the Board cwiKíbv wb‡¤œ †`qv n‡jv:
is as under:
The Bank has established risk management policy SzuwK cÖkg‡bi j‡¶¨ e¨vs‡Ki SuywK e¨e¯’vcbv bxwZgvjv
which is intended to balance risk against returns cªYqb Kiv n‡q‡Q hvi g‡a¨ QqwU cÖavb SuzwK wb‡¤œ D‡jøL
and will comprise of six broad processes as Kiv n‡jv:
follows:
K) FY SzwuK
a) Credit Risk
The Credit Risk Management Manual has been FY SzuwK e¨e¯’vcbv g¨vby‡qjwU ms‡kvab Kiv n‡q‡Q| F‡Yi
revised. It serves as a guide to effectively avert risks m‡½ RwoZ SzuwK¸‡jv wKfv‡e †gvKvwejv Kiv hvq GUvB Zvi
involved in lending activities of the Bank. We have D‡Ïk¨| e¨vs‡Ki d«›U, wgWj Ges e¨vK Awdm Pvjy Kiv
put into practice the concepts of front, middle and
back offices to ensure segregation of duties that
n‡q‡Q hv‡Z GKRb Kgx©i Kg©‡¶‡Î Zvi `vwqZ¡ mywbw`©ó
calls for each individual’s precise responsibilities _v‡K| F‡Yi †¶‡Î h‡_vchy³ wm×v‡šÍ †cuŠQv‡bvi Rb¨
within the area he performs. The Credit Risk †µwWU wi¯‹ †MÖwWs wmm‡Ug (wmAviwR) Pvjy Kiv n‡q‡Q|
Grading System (CRG) has been introduced for
mg¯Í †µwWU Awdmvi‡`i‡K ÔwmAviwRÕ Gi Ici cÖwk¶Y
making proper lending decision. All credit officers
have been trained and groomed on CRG system, †`Iqv n‡q‡Q| G cÖwk¶‡Y cÖavb Kvh©vj‡qi wmwbqi
including their superiors at controlling offices. A Kg©KZ©vivI AskMÖnY K‡i‡Qb| cÖ‡Z¨KwU FY cÖ¯Íve fv‡jv
Credit Committee (CRECOM) has been formed at K‡i cix¶v-wbix¶v K‡i SzuwK¸‡jv wPwýZ Kivi Rb¨ cÖavb
Head Office to oversee and scrutinise risks involved
in the process and give final recommendation in Kvh©vj‡q GKwU †µwWU KwgwU Kvh©iZ i‡q‡Q| GB KwgwU
each credit proposal. Special attention was given SzuwK wbiƒcY K‡i FY cÖ¯Íve mycvwik K‡i| eo eo FY hv
for recovery and other action in the case of wb¤œgv‡bi F‡Y cwiYZ n‡q‡Q Zv Av`v‡q we‡kl e¨e¯’v †bqv
downgraded large loan borrowers.
n‡”Q|
118
and balance sheet positions as well as positions of g¨vPzwiwU Ae¯’v Ges Zvij¨ cwiw¯’wZ chv©‡jvPbv Kiv nq|
maturing assets and liquidity contingency plan. mKj ai‡Yi MÖvnK‡`i Rb¨ e¨vsK chv©ß Zvij¨ i¶v K‡i
The Bank kept its liquidity at satisfactory level to P‡j‡Q|
cater to the needs of all types of customers.
Internal control is an integral part of an B›Uvibvj K‡›Uªvj GKwU cÖwZôv‡bi e¨emvwqK bxwZgvjvi
organization’s business policies. It helps to reduce Askwe‡kl| GwU cÖwZôv‡bi mKj Kg©Kv‡Û AcPq,
waste, complexity and inefficiency. It ensures A¯^”QZv I A`¶Zv cÖwZ‡iv‡a mnvqK f~wgKv cvjb K‡i|
accuracy and reliability in accounting to secure
compliance with the policies of the organization
GQvov GwU Z_¨ Dcv‡Ëi mwVKZv I MÖnY‡hvM¨Zv wbY©q,
and to evaluate the level of performance in all the we`¨gvb bxwZgvjv Abyhvqx Af¨šÍixY cwicvjb Ges
organizational units. cÖwZôv‡bi mvwe©K Kg©Kv‡Ûi g~j¨vqb wbwðZ K‡i|
ICC Division ensures its internal control process B›Uvibvj K‡›Uªvj KZ©„K wewfbœ †PKwj÷ Z_v DCFCL
through review of Departmental Control Functions (wWcvU©‡g›Uvj K‡›Uªvj dvskb †PKwj÷), LDCL (†jvb
Check List (DCFCL), Loan Documentation Check WKz‡g›U †PKwjó) I QOR (†KvqvwjwU Acv‡ikb wi‡cvU©)
List (LDCL) and Quality Operations Report (QOR)
cÖYq‡bi gva¨‡g Af¨šÍixY wbqš¿Y‡K Av‡iv †Rvi`vi Kiv
of the branches and other mechanisms. ‘Internal
Control and Compliance Division’ continuously n‡”Q| AvBwmwmwW µgvš^‡q wewfbœ Kg©‡KŠkj cÖYq‡bi
tests the internal control mechanisms of the whole gva¨‡g mvgwMÖK e¨vswKs e¨emvi wbqš¿‡Yi gv‡bvbœqb Ki‡Q
banking operation and reviews the results of all Ges Gi gva¨‡g wewfbœ wbix¶v Kvh©µg h_v evsjv‡`k e¨vsK
kinds of internal, external, commercial and the wek` cwi`k©b, evwYwR¨K wbix¶v, Af¨šÍixY wbix¶v Ges
central bank’s audits, including the management's ewntwbix¶vi cÖwZ ch©‡e¶Y Ges Zrm¤ú‡K© KZ©„c¶xq
responses to their findings.
ms‡e`bkxjZv‡K cybt g~j¨vqb Ki‡Q|
e) Money Laundering Risk O) gvwb jÛvwis SzwuK
The Bank continues its anti-money laundering gvwb jÛvwis wel‡q e¨vsK m`v RvMÖZ| e¨vs‡Ki †fZ‡i
stance with an emphasis to bring all the branches
under exhaustive training programs inside and
I evB‡i GB D‡Ï‡k¨ Kg©KZ©v I Kg©Pvix‡`i‡K cÖwk¶Y
outside the Bank. In 2010, total 209 Officers and †`qv n‡”Q| 2010 mv‡j AMÖYx e¨vsK †Uªwbs Bbw÷wUDU
Staff were trained on prevention of Money 209 Rb Kg©KZv© I Kg©Pvix‡K gvwb jÛvwis wel‡q
120
Implementation of Basel II e¨v‡mj-2 ev¯Íevqb
The Bank has been implementing BASEL-II e¨vsK 2010 mvj †_‡K e¨v‡mj-2 ev¯Íevqb K‡i Avm‡Q| G
Accord since 2010, placing heavy reliance on c×wZ‡Z Af¨šÍixY SzwuK wbiƒcY Ges e¨e¯’vcbv †KŠkj Gi
internal risk assessment and management
Dci †Rvi †`qv n‡q‡Q| GUv †`qv n‡q‡Q FY SzwuK, evRvi
techniques for the purpose of quantifying and
allocating capital for credit, market and operational
SzuwK, cwiPvjbv SzwuK wnmve K‡i g~ja‡bi cwigvY wba©viY I
risks. Continued success of a bank depends on its e›Ub Kivi Rb¨| AcÖZ¨vwkZ SzuwK Ges cÖwZK‚j A‡bK
ability to prepare for unexpected and potentially NUbvRwbZ SzuwK †_‡K myi¶vi e¨e¯’v _vK‡jB GKwU
much less favorable events and outcomes. The e¨vs‡Ki avivevwnK mvdj¨ Av‡m| e¨vswKs ch©‡e¶‡Yi Ici
Basel Committee on Banking Supervision (BCBS) e¨v‡mj KwgwU Ab e¨vswKs mycviwfkb bZzb GKwU KvVv‡gv
has published a new framework for calculating
w`‡q‡Q hvi gva¨‡g b~¨bZg g~jab wbiƒcY Kiv hvq| Gi 3wU
minimum capital requirement, consisting of 3
pillars, known as Basel II. ¯Íi Av‡Q Ges Zv e¨v‡mj-2 bv‡g cwiwPZ|
Following the suggestions from the National b¨vkbvj w÷qvwis KwgwUi mycvwik †gvZv‡eK e¨vs‡Ki wewfbœ
Steering Committee, continuous training was
provided to the staff members of various
wefv‡Mi Kg©KZ©v I Kg©Pvix‡`i Ae¨vnZfv‡e cÖwk¶Y †`qv
departments. The newly formed Core Risk n‡”Q| 2011 m‡b cÖwZwôZ †Kvi wi¯‹ g¨v‡bR‡g›U GÛ
Management and Basel II Implementation Division
is responsible for overall supervision of Basel II
e¨v‡mj-2 Bgwcø‡g‡›Ukb wWwfkb e¨vs‡K e¨v‡mj-2
implementation of the Bank. The Bank so far ev¯Íevq‡bi `vwq‡Z¡ wb‡qvwRZ i‡q‡Q| evsjv‡`k e¨vsK,
provided training to the Executives and Officers of
the Bank on Basel-II with the assistance of weAvBweGg Ges wbR¯^ Awdmvi‡`i w`‡q e¨vs‡Ki wbev©nx
Bangladesh Bank, BIBM and Bank’s own experts. Ges Awdmvi‡`i G wel‡q cÖwk¶Y †`qv n‡”Q|
01 Education 68 281.18
02 Health Care 127 85.32
03 Disaster Relief 12,191 14.19
04 Environment 02 7.00
05 Sports 08 21.15
06 Arts & Culture 09 48.45
07 Others 64 75.69
Total 12,469 532.98
122
Division is to formulate human resource m‡e©v”P mydj wbwðZ Kivi wbwg‡Ë †hvM¨ e¨w³‡K h_v_©
management policy, to maintain the personal file of Kg©‡¶‡Î wb‡qvwRZ Kiv, wewfbœ †MÖ‡W c‡`vbœwZ cÖ`vb,
every employee, maintain the performance e¨vs‡Ki mg¯Í wbe©vnx/Kg©KZ©v/Kg©Pvix‡`i e¨w³MZ bw_,
appraisal, make the PRL list and inform the evwl©K Kg© g~j¨vqb cÖwZ‡e`b msµvšÍ bw_ msi¶Y Kiv,
concerned employee in due time, sanction
Aemi MÖn‡Yi ZvwjKv cÖ¯‘Z K‡i h_vmg‡q mswkøó
increment, encashment of leave, settlement of
retirement benefit, leave sanction inside and
Kg©KZ©v-Kg©Pvwi‡K AewnZKiY, QywU bM`vqb, Bbwµ‡g›U
outside of Bangladesh, permit higher studies, cÖ`vb, `vwe wb®úwËKiY, QywU gÄywi, we‡`k åg‡Yi AbygwZ,
update the human resource management D”P wk¶vi AbygwZ, gvbem¤ú` e¨e¯’vcbv msµvšÍ wewfbœ
information system and to verify the freedom bxwZgvjv ˆZwi, gyw³hy× gš¿Yvjq †_‡K Kg©Pvix‡`i
fighter's certificates from the related ministry, gyw³‡hv×v mb` hvPvB, AvqKi msµvšÍ KvR, I Ab¨vb¨
income tax related activities and etc. Kvh©vw` G wefv‡Mi gva¨‡g m¤úbœ Kiv n‡q _v‡K|
Chairman of ABL Dr. Khondoker Bazlul Hoque inaugurating a Foundation Course for Probationary Officers at
Agrani Bank Training Institute in Dhaka
Since its inception in 1976 till 2012, ABTI has GwewUAvB 1976 G hvÎvi m~PbvjMœ †_‡K 2012 ch©šÍ
covered a total number of 65,596 wewfbœ wk‡ivbv‡gi Aaxb 2,015 wU †Kvm©/Kg©kvjvi gva¨‡g
executives/officers/staff under different banners of †gvU 65,596 Rb wbe©vnx, Kg©KZ©v I Kg©Pvix‡K cÖwk¶Y
training through 2015 courses/ workshops. ABL
has covered 5,148 participants by conducting 143
cÖ`vb K‡i‡Q| Zš§‡a¨ 2012 m‡b 143wU †Kvm©/Kg©kvjvi
courses/workshops in 2012 alone. gva¨‡g 5,148 Rb cÖwk¶Yv_©x cÖwk¶Y MÖnY K‡i‡Qb|
From the year 2009 to 2012 a huge number of 2009 †_‡K 2012 mb ch©šÍ AMÖYx e¨vsK wjwg‡U‡Wi
probationary officers is included in manpower of we`¨gvb gvbem¤ú‡`i mv‡_ cÖPzimsL¨K wk¶vbwem Kg©KZ©v
ABL. To equip all of those with the banking hy³ n‡q‡Qb| bewbhy³ G mKj Kg©KZ©vMY‡K e¨vswKs
activities, ABTI undertook comprehensive program Kvh©µ‡g AviI wbweofv‡e m¤ú„³Ki‡Yi j‡¶¨ GwewUAvB
both at Dhaka and outside Dhaka. In 2012, 2012 m‡b XvKv I XvKvi evB‡i e¨vcKwfwËK e¨vswKs
Foundation Courses conducted by ABTI are as eywbqvw` cÖwk¶Y Kg©m~wP MÖnY K‡i| D‡jøwLZ cÖwk¶Y
under: Kg©m~wPi weeiY wb¤œiƒct
124
Apart from the above, ABTI has organized different ewY©Z cÖwk¶Y †Kvm© QvovI GwewUAvB we`¨gvb Kg©iZ
courses for enhancing knowledge & skills of Kg©KZ©vMY hviv B‡Zvg‡a¨ e¨vswKs eywbqvw` cÖwk¶Y †Kvm©
existing officers and of those who have completed m¤úbœ K‡i‡Q Zv‡`i Áv‡bi cwiwa AviI we¯Í…ZKi‡Yi
the banking foundation course. They are as j‡¶¨ Ab¨vb¨ wewfbœ cÖwk¶Y Kg©m~wPi Av‡qvRb K‡i, hv
follows: wb¤œiƒc:
Dr. Syed Abdul Hamid, FCA, Managing Director & CEO of ABL, inaugurating a workshop on Asset Liability
Management at the Agrani Bank Training Institute in Dhaka
Risk management is the key focus for banks. eZ©gvb mg‡q ÔSuywK e¨e¯’vcbvÕ e¨vsK †Kv¤úvwbmg~‡ni
Keeping it in mind, in 2012, ABTI has conducted
Ab¨Zg cÖavb cÖwZcv`¨ welq| G wel‡qi ¸iæZ¡‡K aviY
workshops named & styled as ‘Risk Based Capital
Management’ in Banks, which has been designed K‡i 2012 m‡b GwewUAvB AMÖYx e¨vsK wjwg‡U‡Wi
for 64 executives. Besides the following wbe©vnxM‡Yi D‡Ï‡k¨ ÔSzuwKwfwËK g~jab e¨e¯’vcbvÕ kxl©K
workshops related to risk management were
wewfbœ cÖwk¶Y Kg©kvjvi Av‡qvRb K‡i, hv wb¤œiƒct
conducted:
Sl. Level of No of No of
Name of Courses/ Workshops
No. Participants Courses Participants
1. Application & Operation of On-line Banking Software (Temenos T24) Concerned Officer 18 505
2. Computer: PC-MS Office Officer to SPO 2 51
3. Computer : Application & Oper.of Branch Banking Software Concerned Officer 5 115
4. MS Office : Excel, its use in Agrani Bank Limited (Day) Concerned Officer 2 52
5. Computer: PC-MS Office Clerical Staff 1 26
6. Workshop on Bangladesh Automated Clearing House (BACH) Officer & Above 8 249
7. An Introduction to Online Banking Software: T-24 Officer & Above 3 79
8. Workshop On Migration of DD,PO, PS, FDR & Its Application in T-24 Officer & Above 6 140
9. Software For RAJUK Flat Project. Officer & Above 1 46
10. Workshop Remittance Operation “NBL Quick Pay” Officer & Above 1 87
11. SWIFT Operation: Use of SWIFT Alliance Messenger (SAM) Officer & Above 2 62
12. Computer: Remittance operation of Western Union Money Transfer Officer & Above 8 165
13. Online TM for Management System, Form C & Wage Earners Rem. Rep. Officer & Above 2 84
14. Anti Virus Installation & Basic Trouble Shooting Officer & Above 4 100
15. Foreign Exchange Transactions Reporting Officer & Above 2 48
16. Web Based Online TT Issue & Payment Procedure Officer & Above 5 145
17. Computer: Remittance Operation of Western Union Money Transfer Officer & Above 1 49
In 2012, a good number of Executives & Officers 2012 mv‡j GwewUAvB QvovI †`‡k I we‡`‡k wewfbœ †Uªwbs
have participated the various training /workshops Bbw÷wUDU/GKv‡Wwg Gi gva¨‡g AMÖYx e¨vsK wjwg‡U‡Wi
conducted by other Training Institutes in
wbe©vnx I Kg©KZ©vMY cÖwk¶Y jvf K‡i‡Qb, hvi mvi ms‡¶c
Bangladesh and abroad. Below is presented a list
of those Trainings/Workshops: wb¤œiƒct
126
Training/Workshop outside ABTI (home & abroad)
For the year 2013, a comprehensive need based 2013 mv‡ji Rb¨ cwiPvjbv cwil‡`i Aby‡gv`bµ‡g
training course curriculum has been designed by GwewUAvB KZ…©K e¨vs‡Ki e¨vcK Pvwn`v wfwËK GKwU
ABTI and the same has duly been approved by cÖwk¶Y Kg©m~wP cÖYqb Kiv n‡q‡Q| D³ cÖwk¶Y Kg©m~wP‡Z
Board of Directors, in which 7,265 participants will m¤¢ve¨ 172wU †Kvm©/Kg©kvjv I 7,265 Rb cÖwk¶Yv_©x‡K
be included in 172 courses/workshops. In the cÖwk¶Y cÖ`v‡bi j¶¨ wba©viY Kiv n‡q‡Q| 2013 mv‡ji
training program of 2013, emphasis has been Rb¨ cÖYxZ evwl©K cÖwk¶Y Kg©m~wP‡Z AMÖYx e¨vsK
given on training up the newly recruited officers by wjwg‡UW-G bewbhy³ Kg©KZ©v‡`i e¨vswKs eywbqvw` †Kv‡m©i
conducting banking foundation course. In this Dci we‡kl ¸iæZ¡ †`qv n‡q‡Q| †m j‡¶¨ XvKv¯’
regard, ABTI along with 7(seven) Outreach GwewUAvB-mn XvKvi evB‡i 7wU cÖwk¶Y †K‡›`ª eQie¨vcx
Centers will conduct banking foundation courses e¨vswKs eywbqv`x †Kv‡m©i cÖwk¶Y cÖ`v‡bi e¨e¯’v MÖnY Kiv
throughout the year. n‡q‡Q|
Agrani Bank Training Institute has been working AMÖYx e¨vsK †Uªwbs Bbw÷wUDU e¨vs‡Ki gvbem¤ú`‡K AviI
hard for developing human resources full of DbœZZi Kivi gvb‡m Zv‡`i Acvi m¤¢vebv, m„RbkxjZv,
potentiality, creativity, skill, integrity and `¶Zv, mZZv I †cÖlYv weKwkZ Ki‡Yi j‡¶¨ wbišÍi
motivation. cÖ‡Póv Pvwj‡q hv‡”Q|
Particulars
The bank will constantly persuit the policies of `¶ Rbej, e¨emvwqK mykvmb I SzuwK e¨e¯’vcbvi j‡¶¨
recruitment of skilled manpower, good corporate
cÖwZwbqZ myôz cwiKíbv MÖnY Kiv n‡e| D”P Acv‡iwUs
governance practices, and sound risk
management. We will make every effort to earn gybvdv AR©b, b~¨bZg g~jab msi¶Y, †kÖbxweb¨vwmZ FY
high operating profit, maintain minimum capital me©wb¤œ ch©v‡q bvwg‡q Avbv Ges mKj LvZ †hgb Avg`vwb
adequacy, bring classified loan at a minimum level ißvwb e¨emv, †iwgU¨vÝ AvniY, Znwej e¨q msi¶Y BZ¨vw`
and to do best in all sectors including deposit,
wel‡q mdjZv AR©‡b me©vZ¥K cÖ‡Póv Ae¨vnZ _vK‡e|
credit, import, export, remittance, cost of fund etc.
Moreover, we want to make utmost contribution to GQvovI mgv‡Ri Dbœq‡b e¨vsK h_vmva¨ f‚wgKv cvjb
the society in which we operate. Ki‡e|
128
Standards (BASs) and Bangladesh Financial evsjv‡`k e¨vs‡Ki weAviwcwW mvKz©jvi bs 14, ZvwiL 25
Reporting Standards (BFRSs) and in the format
Ryb 2003 G cÖ`Ë QK †gvZv‡eK e¨vs‡Ki wnmve ˆZwi Kiv
prescribed by Bangladesh Bank vide BRPD
Circular No. 14 dated 25 June 2003, give a true n‡q‡Q| 2012 mv‡ji †k‡l cÖYxZ wnmv‡e cÖK…Z wPÎ dz‡U
and fair view of the state of affairs as at December D‡V‡Q| e¨emvwqK Kvh©µ‡gi djvdj Ges bM` cÖevn
31, 2012. The results of its operations and its cash
flows for the year ended December 31, 2012 BZ¨vw` mwVKfv‡e cÖwZdwjZ n‡q‡Q| e¨vsK †Kv¤úvwbR
comply with the applicable sections of the Bank G¨v± 1991 Ges Ab¨vb¨ mswkøó weavb I AvBbvbymv‡i wnmve
Companies Act 1991 and other applicable laws
cÖ¯‘Z Kiv n‡q‡Q hv h_vh_fv‡e wbix¶KMY KZ©„K wbixw¶Z
and regulations. The financial statements have
been duly certified by the statutory auditors. n‡q‡Q|
The employees including the members of top e¨vs‡Ki cwiPvjbv Kvh©µgmn mKj †¶‡Î Dbœqb Z¡ivwš^Z
management of the Bank came up with their total
Kivi j‡¶¨ GKwbô _vKvi AsMxKv‡ii Rb¨ e¨vs‡Ki
commitment in implementing the agenda for
improvement in the spheres of banking operations. DaŸ©Zb wbev©nxmn me©¯Í‡ii Kg©KZv© I Kg©Pvix‡K cwiPvjbv
The Board takes this opportunity to thank them all. cwil` ab¨ev` Ávcb Ki‡Q|
Finally, the Board would like to thank the respected cwi‡k‡l, cwiPvjbv cwil` mš§vwbZ †kqvi‡nvìviMY‡K
shareholders and assure them that it will continue we‡klfv‡e ab¨ev` Ávcb Ki‡Q e¨vs‡Ki Dci wek¦vm I
to add to the shareholders’ wealth through further Av¯’v ¯’vc‡bi Rb¨| cwiPvjbv cwil` Zvu‡`i‡K Avk¦¯Í
strengthening and development of the Bank in Ki‡Q †h, e¨vs‡Ki Kvh©µg kw³kvjx K‡i I Dbœq‡bi
which they have placed trust and confidence. gva¨‡g Zvuiv †kqvi‡nvìviM‡Yi ¯^v_© myi¶vq cÖqvm Ae¨vnZ
ivL‡e|
130
Annual Report 2012 131
Corporate Governance
Focus
Corporate governance (CG) is a set of principles, which should be incorporated in every part of the organization to
ensure accountability. It encompasses policies, processes and people which serve the needs of the shareholders and
other stakeholders. Agrani Bank Limited is always committed to adopt highest governance standards for attaining better
operational goals. Corporate Governance at the bank is defined as the framework under which the bank is directed to
facilitate and control the mutual relationship among the management, the Board of Directors, Government and other
stakeholders, such as employees, clients and lenders. The collective role of the Board of Directors, Managing Director &
CEO and the Audit Committee of the Bank ensure excellence in corporate governance practices.
Board Structure
The Board of Directors consists of 13 members, including Managing Director & CEO. It has a committee named Board
Audit Committee. Consequent upon the corporatization, the Board now exercises greater autonomy in running the
organization more effectively than before.
132
Independent Directors
All members of the board were nominated by the Government and each of them holds one share which is less than 1
percent of paid-up shares of the Bank. Mr. Ranjit Kumar Chakraborty is an Additional Secretary of Ministry of Finance,
Government of the People’s Republic of Bangladesh (from 13.12.2006 to 27.12.2012) and Mr. Arastoo Khan, an Additional
Secretary of Ministry of Finance (from 28.12.2012 to till now) and all other directors are from different professions
and private sectors. As per Notification of Securities and Exchange Commission (Ref # SEC/CMRRCD/2006-158/
Admin/02-08, dated 20 February 2006, all of them can be justifiably considered as independent directors.
Credit Rating
In 2011, the bank appointed Credit Rating Information and Services Limited (CRISL) for credit rating of the bank as per
directives of Bangladesh Bank. The rating company assigned AAA to the bank in the long term and ST-1 in the short term.
This rating has been done in consideration of the guarantee of the Government of the People’s Republic of Bangladesh
being the highest risk free entity. Financial institutions rated in this category have the best quality, offer the highest safety
and have the highest credit quality.
There were 14 meetings of the Committee held in 2012. The attendance of each Member in 2012 is mentioned in the
above table. Since the tenure of three directors i.e Mr. Shekhar Dutta, Mr. Nagibul Islam Dipu & Engr. Abdus Sabur retired
in September 2012, the Board Audit Committee was re-organized on 20.12.2012 comprising the following members:
a. Internal Audit.
b. External Audit.
c. Government Commercial Audit.
d. Bangladesh Bank Audit.
In the case of Commercial Audit, ICCD arranges tri-partite meetings with Ministry of Finance and Directorate of Commercial
Audit. In case of Bangladesh Bank Audit in Head Office, ICCD arranges meeting with Board Audit Committee. Sometimes
ICCD pays surprise visit to the branches for checking DCFCL (Departmental Control, Functions Check List).
134
Status of Compliance Requirement of
Bangladesh Bank’s guideline for Corporate Governance
BRPD circular no 16 dated 24.07. 2003
136
Compliance Status Explanation
Sl.
Particulars for non
No. Non compliance
Complied
Complied
2. Responsibilities of the Chairman and Board of Directors
(a) As the Chairman of the Board of Directors (or Chairman of
any Committee formed by the Board or any Director) does not
personally possess the jurisdiction to apply policy making or √
executive or authority, he shall not participate in or interfere into
the administrative or operational and routine affairs of the Bank.
(b) The Chairman may conduct on-site inspection of any Bank-
branch or financing activities under the purview of the oversight
responsibilities of the Board. He may call for any information
relating to Bank’s operation or ask for investigation into any such
affairs; he may submit such information or investigation report
to the meeting of the Board or the Executive Committee and if √
deemed necessary, with the approval of the Board, he shall effect
necessary action thereon in accordance with the set rules through
the CEO. However, any complaint against the CEO shall have to
be apprised to Bangladesh Bank through the Board along with the
statement of the CEO.
(c) The Chairman may be offered an office-room, a personal
secretary/assistant, a telephone at the office and a vehicle in the
business-interest of the Bank subject to the approval of the Board. √
3. Responsibilities of Adviser
The adviser, whatever name called, shall advise the Board of Not
Directors or the CEO on such issues only for which he is engaged Applicable
in terms of the conditions of his appointment. He shall neither have (No such
access to the process of decision-making nor shall have the scope Adviser)
of effecting executive authority in any matters of the Bank including
financial, administrative or operational affairs.
4. Responsibilities and Authorities of CEO
The CEO of the Bank, whatever name called, shall discharge the
responsibilities and effect the authorities as follows:
(a) In terms of the financial, business and administrative authorities
vested upon him by the Board, the CEO shall discharge his own
responsibilities. He shall remain accountable for achievement of
financial and other business targets by means of business plan,
efficient implementation thereof and prudent administrative and √
financial management.
(b) The CEO shall ensure compliance of the Bank Companies Act,
1991 and/or other relevant laws and regulations in discharge of
routine functions of the Bank. √
(c) The CEO shall report to Bangladesh Bank of issues for violation
of the Bank Companies Act 1991 or of other laws/regulations and,
if required, may apprise the Board post facto. √
(d) The recruitment and promotion of all staff of the Bank except
those in the two tiers below him shall rest on the CEO. He shall act
in such cases in accordance with the approved Service Rules on
the basis of the human resources policy and sanctioned strength of
employees as approved by the Board. The Board or the chairman
of any committee of the Board or any Director shall not get involved √
or interfere into such affairs. The authority relating to transfer of
and disciplinary measures against the staff, except those at one
tier below the CEO, shall rest on him, which he shall apply in
accordance with the approved Service Rules. Besides, under the
purview of the human resources policy as approved by the Board,
he shall nominate officers for training etc.
Bangladesh Bank sets out the responsibilities of the f) Human resources management and development
Directors of a bank. In accordance with their guidelines, i) Responsible for framing the service rules and
the responsibilities of the Directors of Agrani Bank Limited policies for appointment, promotion, retirement,
encompass the following: transfer, punishment, training and development
of human resources.
a) Work plan and strategic management ii) Responsible for approving ICT policies,
i) Responsible for determining the long term introducing and developing Management
objectives and goals of the Bank and formulating Information system (MIS).
yearly strategies and action plan for it.
g) Financial management
ii) They are to drive organizational change to
improve the quality of the services rendered i) Responsible for approval of the annual budget
by the Bank in order to achieve the objectives and statutory financial statements.
and targets and to analyze the progress of ii) Responsible for evaluating the income, expenses,
implementation of work plan. liquidity, capital adequacy, recovery of expired/
uncollected loans and advances, maintenance of
b) Risk management provisions and legal actions to recover the loans
and advances.
i) Responsible for making risk management policies
and monitor its institutionalization. iii) Responsible for framing purchase and
procurement policies and procedures.
c) Credit management iv) They would not interfere directly or indirectly with
the approval of any loan proposals.
i) Responsible for making policies and procedures
to evaluate, disbursement, recover, reschedule
and write-off loans and advances as per
h) Appointment of CEO
applicable rules and regulations. i) Responsible for appointing a competent Chief
ii) They may delegate power to the CEO and other Executive Officer (CEO) with the approval from
senior executives for approval of loans and Bangladesh Bank.
advances as deemed necessary. ii) Responsible for determining the key performance
indicators (KPI) of CEO and other senior
d) Internal control management executives and evaluate the same from time to
time.
i) They approve annual audit plan and evaluate
the report of Audit Committee regarding the
implementation of suggestions from internal
i) Other responsibilities
audit, external audit, and Bangladesh Bank audit. i) They also perform other responsibilities as may
be determined by Bangladesh Bank from time to
e) Committee formation time.
i) Responsible for constituting the Audit Committee
For and on behalf of the Board of Directors
from members of the Board of Directors.
ii) Responsible for forming executive/other
committees as per guideline of the Bangladesh
Bank.
iii) Responsible for forming Risk Management Khondoker Bazlul Hoque, PhD
committees as per guideline of Bangladesh Bank. Chairman
138
Report of the
Board Audit Committee
i) Reviews the Internal Control System of the Bank to i) Reviewed the internal audit plan for the year 2012.
ensure that sufficient risk management system is in
ii) Reviewed the comprehensive inspection report of
place to manage core risk of the Bank.
Bangladesh Bank and status of compliance thereof.
ii) Reviews the efficiency and effectiveness of Internal
iii) Reviewed the internal inspection report of different
Control System.
branches of the Bank conducted by Bank’s audit and
iii) Considers the recommendations made by the internal inspection team from time to time and advised the
and external auditors. Bank management to take corrective measures to
iv) Ensures fair presentation of financial statements settle down the objections immediately.
in compliance with the Bangladesh Accounting iv) Reviewed all important internal and external audit
Standards and Bangladesh Financial Reporting reports on different branches and suggested remedial
Standards. measures to reduce the number of audit objections.
v) Reviews the Internal Audit Procedure. v) Reviewed the Bank’s financial statements of 2012 and
vi) Reviews compliance with the applicable rules and suggested several amendments and placing it before
regulations of Bangladesh Bank, Bank Companies Act the Board for approval.
1991, Companies Act 1994.
vi) Reviewed the implementation status of audit plan
vii) Reports immediately to the Board of Directors on 2011.
conflict of interest.
vii) Reviewed the allocation of manpower for internal audit
viii) Reports to the Board of Directors on frauds or and suggested necessary measures so that audit
irregularities or material defects in the Internal Control work can be done properly.
System.
viii) Reviewed the reconciliation position and advised
the management to take necessary measures for
Composition of the committee is as follows:
reconciliation of all un-reconciled entries.
1. Ranjit Kumar Chakraborty, Chairman
2. Shekhar Dutto, Member Acknowledgements
3. Nagibul Islam Dipu, Member The Audit Committee expresses its sincere thanks to the
respected Members of the Board, Management and the
4. Engineer Md. Abdus Sabur, Member Auditors for their continuous support.
5. A. K. Gulam Kibria, FCA, Member
For and on behalf of the Audit Committee
Meetings
During the year 2012, 14 meetings of the Committee were
held. In the meetings, the Committee met with the officials
of Internal Audit, Financial Administration, Credit, Legal
and Internal Control & Compliance Divisions and also with
the external auditors to consider and resolve the financial Ranjit Kumar Chakraborty
reporting issues, findings and recommendations made by Chairman, Board Audit Committee
We have audited the accompanying consolidated financial statements of Agrani Bank Limited and its
subsidiaries (the Group) as well as financial statements of Agrani Bank Limited ("the Bank") for the year
ended 31 December 2012 which comprise the balance sheet, profit and loss account, cash flow statement
and statement of changes in equity and the related notes 1-54 thereto.
The financial statements of the Bank’s subsidiaries, Agrani Exchange House (Pvt.) Limited, Singapore,
Agrani Remittance House SDN. BHD. Malaysia, Agrani Equity and Investment Limited and Agrani SME
Financing Company Limited for the year ended 31 December 2012, as incorporated in the consolidated
financial statements, have been audited by other firms of chartered accountants whose reports have been
furnished to us. The assets, liabilities, revenue and expenses of the subsidiary included in the consolidated
financial statements of the Group are not material in the context of consolidated figures given in the
consolidated financial statements.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with Bangladesh Standards on Auditing. Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements referred to above which have been prepared in accordance with
Bangladesh Financial Reporting Standards (except for BAS-21 in the case of consolidated financial
statements) give a true and fair view of the state of affairs of the Group/ Bank as at 31 December 2012 and
of their financial performance and cash flows for the year then ended and comply with the Companies Act
1994, the Bank Companies Act 1991, the rules and regulations issued by Bangladesh Bank and other
applicable laws and regulations.
142
Emphasis of Matters
We draw attention to the following matters, though our opinion is not qualified in respect of the same:
1. As disclosed in note # 2.6.5 to the financial statements, while preparing the consolidated financial
statements the Bank used closing exchange rates for translating all the financial statements items of
the two foreign subsidiaries which are not in compliance with BAS-21, though such a non-compliance
does not have any material effect on the financial statements.
2. As disclosed in note # 6.4 to the financial statements, the Bank reported other Investments Tk. 2,541
crore which includes shares for an aggregate amount of Tk.300 crore of BEXIMCO Ltd., GMG Airlines
and Unique Hotel & Resorts Ltd. under sale and buy back agreements which have expired. The
ownership of Tk.233 crore shares under the above sale and buy back agreements have not yet been
transferred in the name of the Bank and a provision for loss of TK. 125 crore has been made against
such investments.
3. As disclosed in note # 9 to the financial statements, “Other Assets” include a net Branch adjustment
amount of Tk.173 crore (such amount in 2011 was Tk.568 crore). This needs to be reconciled as early
as possible.
4. As disclosed in note # 13.4 and 13.4(a) to the financial statements, there is a shortfall of capital
amounting to Tk.3,465 crore and Tk.3,414 crore respectively as at 31 December 2012, which is a
non-compliance with the BASEL-II requirement.
Balance with Other banks and financial institutions: 4(a) 5,467,974,288 3,754,061,070
In Bangladesh 2,883,930,314 1,883,238,401
Outside Bangladesh 2,584,043,974 1,870,822,669
Fixed assets :
including land, building, furniture and fixtures: 8(a) 11,401,179,835 11,235,335,985
Other assets: 9(a) 30,918,397,208 32,127,606,183
Non-banking assets: - -
Total assets 378,906,231,980 349,178,129,376
Capital/Shareholders' equity:
Paid-up Capital 13.2 9,912,940,400 9,011,764,000
144
Consolidated Off Balance Sheet Items
As at 31 December 2012
Amount in Taka
Particulars Notes 2012 2011
Contingent Liabilities:
Acceptances and Endorsements 21 112,418,753,282 113,392,815,019
Other commitments: - -
Documentary credit and short term trade-related transactions - -
Liability on account of outstanding forward exchange contract - -
Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and
other commitments - -
These financial statements should be read in conjunction with the annexed notes 1 to 54.
(MD. NAZRUL ISLAM FARAZI) (MOHAMMAD SHAMS-UL ISLAM) (SYED ABDUL HAMID)
General Manager Deputy Managing Director Managing Director & CEO
(MD. ALTAF HOSSAIN MOLLA) (ENGR. ABDUS SABUR) (DR. KHONDOKER BAZLUL HOQUE)
Director Director Chairman
These financial statements should be read in conjunction with the annexed notes 1 to 54.
(MD. NAZRUL ISLAM FARAZI) (MOHAMMAD SHAMS-UL ISLAM) (SYED ABDUL HAMID)
General Manager Deputy Managing Director Managing Director & CEO
(MD. ALTAF HOSSAIN MOLLA) (ENGR. ABDUS SABUR) (DR. KHONDOKER BAZLUL HOQUE)
Director Director Chairman
146
Consolidated Cash Flow Statement
For the year ended 31 December 2012
Amount in Taka
Particulars Notes 2012 2011
A. Cash flows from operating activities
Interest receipts in cash 42(a) 30,309,829,078 23,279,323,578
Interest payments 43(a) (18,086,960,040) (10,803,303,072)
Dividend receipts 462,919,972 229,475,313
Fees and commission receipts 1,784,809,117 1,994,100,178
Recovery of loans previously written off 520,051,838 3,151,927,443
Cash payment to employees (4,259,064,597) (4,102,627,738)
Cash payments to suppliers (178,859,477) (166,614,969)
Receipts from other operating activities 44(a) 917,672,303 1,145,323,910
Payments for other operating activities 45(a) (1,941,521,652) (1,662,480,467)
Operating profit/(loss) before changing in operating
assets and liabilities 46(a) 9,528,876,542 13,065,124,177
(Increase)/decrease in operating assets
Treasury Bills 1,622,255,647 (6,377,608,108)
Treasury & Other Bond (HFT) (4,089,506,573) 13,783,174,124
Fund advanced to customers (18,681,034,482) (30,829,471,728)
Other assets (1,074,715,032) (1,239,961,047)
(22,223,000,440) (24,663,866,759)
Increase/(decrease) in operating liabilities
Deposit from customers 40,220,867,041 45,882,348,754
Other liabilities (4,419,239,571) (2,626,907,559)
35,801,627,470 43,255,441,195
Net cash from operating activities (A) 23,107,503,573 31,656,698,613
These financial statements should be read in conjunction with the annexed notes 1 to 54.
(MD. NAZRUL ISLAM FARAZI) (MOHAMMAD SHAMS-UL ISLAM) (SYED ABDUL HAMID)
General Manager Deputy Managing Director Managing Director & CEO
(MD. ALTAF HOSSAIN MOLLA) (ENGR. ABDUS SABUR) (DR. KHONDOKER BAZLUL HOQUE)
Director Director Chairman
Dated, Dhaka
June 30, 2013
148
Consolidated Liquidity Statement
(Asset and Liability Maturity Analysis)
As at 31 December 2012
(Amount in Taka)
Assets:
Cash in hand 4,624,671,368 - - - 16,113,545,000 20,738,216,368
Balance with other banks and financial institutions 93,930,314 2,393,459,552 2,790,000,000 190,584,422 - 5,467,974,288
Money at call and short notice 2,700,000,000 - - - - 2,700,000,000
Investment 13,794,600 - 18,079,126,484 17,459,072,381 61,039,002,478 96,590,995,943
Loans and advances 17,986,332,285 15,393,225,668 66,447,474,319 56,745,891,950 54,516,544,116 211,089,468,338
Fixed assets including land, furniture and fixtures - - - - 11,401,179,835 11,401,179,835
Other assets - - - - 30,918,397,208 30,918,397,208
Non-banking assets - - - - - -
Total Assets 25,418,728,567 17,786,685,220 87,316,600,803 74,395,548,753 173,988,668,637 378,906,231,980
Liabilities
Borrowing from Bangladesh Bank,Other banks,
financial institutions and agents 10,064,652,429 - - - 9,738,840 10,074,391,269
Deposits and other accounts 42,887,024,298 2,900,560,098 16,454,223,806 141,093,867,130 88,309,778,606 291,645,453,938
Provision and other liabilities 1,045,222,134 360,685,254 6,349,412,987 19,911,359,558 42,697,780,602 70,364,460,535
Total Liabilities 53,996,898,861 3,261,245,352 22,803,636,793 161,005,226,688 131,017,298,048 372,084,305,742
Net Liquidity Gap (28,578,170,294) 14,525,439,868 64,512,964,010 (86,609,677,935) 42,971,370,589 6,821,926,237
(MD. NAZRUL ISLAM FARAZI) (MOHAMMAD SHAMS-UL ISLAM) (SYED ABDUL HAMID)
General Manager Deputy Managing Director Managing Director & CEO
149
Dated, Dhaka
June 30, 2013
Balance Sheet
As at 31 December 2012
Amount in Taka
Particulars Notes 2012 2011
PROPERTY AND ASSETS
Cash: 03 20,683,023,020 18,928,174,857
Cash in Hand (including foreign currencies) 3,635,176,780 3,263,678,354
Balance with Bangladesh Bank and its agent bank
(including foreign currencies) 17,047,846,240 15,664,496,503
Fixed assets
including land, building, furniture and fixtures: 08 11,380,727,224 11,226,649,745
Other assets: 09 33,576,151,140 34,636,061,097
Non-banking assets: - -
Total assets 378,716,418,928 348,820,708,845
Capital/Shareholders' equity:
Paid-up Capital 13.2 9,912,940,400 9,011,764,000
150
Off Balance Sheet Items
As at 31 December 2012
Amount in Taka
Particulars Notes 2012 2011
Contingent Liabilities:
Other commitments: - -
Documentary credit and short term trade-related transactions - -
Liability on account of outstanding forward exchange contract - -
Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
These financial statements should be read in conjunction with the annexed notes 1 to 54.
(MD. NAZRUL ISLAM FARAZI) (MOHAMMAD SHAMS-UL ISLAM) (SYED ABDUL HAMID)
General Manager Deputy Managing Director Managing Director & CEO
(MD. ALTAF HOSSAIN MOLLA) (ENGR. ABDUS SABUR) (DR. KHONDOKER BAZLUL HOQUE)
Director Director Chairman
Dated, Dhaka
June 30, 2013
These financial statements should be read in conjunction with the annexed notes 1 to 54.
(MD. NAZRUL ISLAM FARAZI) (MOHAMMAD SHAMS-UL ISLAM) (SYED ABDUL HAMID)
General Manager Deputy Managing Director Managing Director & CEO
(MD. ALTAF HOSSAIN MOLLA) (ENGR. ABDUS SABUR) (DR. KHONDOKER BAZLUL HOQUE)
Director Director Chairman
152
Cash Flow Statement
For the year ended 31 December 2012
Amount in Taka
Particulars Notes 2012 2011
A. Cash flows from operating activities
Interest receipts in cash 42 30,168,857,049 23,187,497,093
Interest payments 43 (17,832,278,032) (10,750,898,025)
Dividend receipts 429,171,499 215,517,570
Fees and commission receipts 1,772,883,082 1,844,233,072
Recovery of loans previously written off 520,051,838 3,151,927,443
Cash payment to employees (4,434,326,252) (4,102,945,520)
Cash payments to suppliers (178,859,477) (166,614,969)
Receipts from other operating activities 44 914,362,937 1,141,111,657
Payments for other operating activities 45 (1,823,847,122) (1,350,795,719)
Operating profit/(loss) before changing in
operating assets and liabilities 46 9,536,015,522 13,169,032,602
(Increase)/decrease in operating assets
Treasury Bills 1,622,255,647 (6,377,608,108)
Treasury & Other Bond (HFT) (4,089,506,573) 13,783,174,124
Fund advanced to customers (18,577,361,159) (30,829,471,728)
Other assets (1,102,612,262) (1,235,458,531)
22,147,224,347) (24,659,364,243)
Increase/(decrease) in operating liabilities
Deposit from customers 40,220,867,041 45,882,348,754
Other liabilities (4,260,518,287) (2,137,344,166)
35,960,348,754 43,745,004,588
Net cash from operating activities (A) 23,349,139,929 32,254,672,947
These financial statements should be read in conjunction with the annexed notes 1 to 54.
(MD. NAZRUL ISLAM FARAZI) (MOHAMMAD SHAMS-UL ISLAM) (SYED ABDUL HAMID)
General Manager Deputy Managing Director Managing Director & CEO
(MD. ALTAF HOSSAIN MOLLA) (ENGR. ABDUS SABUR) (DR. KHONDOKER BAZLUL HOQUE)
Director Director Chairman
Dated, Dhaka
June 30, 2013
Balance as at 01, January 2012 9,011,764,000 269,357,597 4,139,818,028 5,000,000 7,538,417,849 4,978,266,572 25,942,624,046
Changes in accounting policy - (269,357,597) - - - - (269,357,597)
Prior Years Adjustment of Provision fo Taxation up to 2004 - - - - - - -
Adjustment of Advance Tax - - - - - - -
Restated balance 9,011,764,000 - 4,139,818,028 5,000,000 7,538,417,849 4,978,266,572 25,673,266,449
Amortization of Valuation Adjustment - - - - - - -
Surplus/deficit on account of revaluation of properties - - - - (6,394,258) - (6,394,258)
Surplus on account of revaluation of investments in - - - - - - -
Approved Securities: - - - - - - -
Held to Maturity (HTM) - 95,643,755 - - - - 95,643,755
Held for Trading (HFT) - 21,532,294 - - - - 21,532,294
Currency transaction differences - - - - - - -
Net gains and losses not recognized in the income statement - - - - - - -
Issue of Share Capital ( Right Share ) - - - - - - -
Bonus Share 901,176,400 - - - - (901,176,400) -
Net profit for the year - - - - - (18,620,572,069) (18,620,572,069)
Statutory Reserve - - - - - - -
Balance as at December 31, 2012 9,912,940,400 117,176,049 4,139,818,028 5,000,000 7,532,023,591 (14,543,481,897) 7,163,476,171
Balance as at December 31, 2011 9,011,764,000 269,357,597 4,139,818,028 5,000,000 7,538,417,849 4,978,266,572 25,942,624,046
These financial statements should be read in conjunction with the annexed notes 1 to 54.
(MD. NAZRUL ISLAM FARAZI) (MOHAMMAD SHAMS-UL ISLAM) (SYED ABDUL HAMID)
General Manager Deputy Managing Director Managing Director & CEO
(MD. ALTAF HOSSAIN MOLLA) (ENGR. ABDUS SABUR) (DR. KHONDOKER BAZLUL HOQUE)
Director Director Chairman
Dated, Dhaka
June 30, 2013
Liquidity Statement
(Asset and Liability Maturity Analysis)
As at 31 December 2012 (Amount in Taka)
Assets:
Cash in hand 4,569,478,020 - - - 16,113,545,000 20,683,023,020
Balance with other banks and financial institutions 93,930,314 2,393,459,804 2,615,720,778 190,584,170 - 5,293,695,066
Money at call and short notice 2,700,000,000 - - - - 2,700,000,000
Investment 13,794,600 - 18,079,126,484 17,459,032,381 56,867,851,681 92,419,805,146
Loans and advances 17,986,332,285 15,393,225,668 64,447,474,067 56,745,891,950 58,090,093,362 212,663,017,332
Fixed assets including land, furniture and fixtures - - - - 11,380,727,224 11,380,727,224
Other assets - - - - 33,576,151,140 33,576,151,140
Non-banking assets - - - - - -
Total Assets 25,363,535,219 17,786,685,472 85,142,321,329 74,395,508,501 176,028,368,407 378,716,418,928
Liabilities:
Borrowing from Bangladesh Bank,Other banks,
financial institutions and agents 10,064,652,429 - - - 9,738,840 10,074,391,269
Deposits and other accounts 42,887,024,298 2,900,560,098 16,454,223,806 141,093,867,130 89,093,551,805 292,429,227,137
Provision and other liabilities 1,045,222,134 360,685,254 6,349,412,987 19,933,807,752 41,360,196,224 69,049,324,351
Total Liabilities 53,996,898,861 3,261,245,352 22,803,636,793 161,027,674,882 130,463,486,869 371,552,942,757
Net Liquidity Gap (28,633,363,642) 14,525,440,120 62,338,684,536 (86,632,166,381) 45,564,881,538 7,163,476,171
(MD. NAZRUL ISLAM FARAZI) (MOHAMMAD SHAMS-UL ISLAM) (SYED ABDUL HAMID)
General Manager Deputy Managing Director Managing Director & CEO
155
Dated, Dhaka
June 30, 2013
Notes to the Financial Statements
As at and for the year ended December 31, 2012
1. BACKGROUND INFORMATION
1.2 The Bank has 4 (Four) Subsidiaries, details of which are given at note no. 1.2.1-1.2.4.
156
1.2.3 Agrani Equity and Investment Limited
The company is a public limited registered under the Companies Act 1994. The company was
incorporated in Bangladesh on 16 March 2010 with Certificate of Incorporation No. C-8357/10
whose registered office is located at 9/D, Dilkusha, Motijheel, Dhaka-1000, Bangladesh. The
Company is a subsidiary of Agrani Bank Limited, a fully state owned bank of Bangladesh, which
is also the Company’s ultimate holding company. The principal activities of the company
comprised of merchant banking, portfolio management, issue management and underwriting.
Here, SGD and RM indicate Singaporean Dollar and Malaysian Ringgit respectively.
158
2.6.3 Commitment
Commitments for outstanding forward foreign exchange contracts disclosed in the consolidated
financial statements and financial statements of Bank have been translated at contracted rates.
Contingent liabilities/commitments for letter of credit, letter of guarantee and acceptance
denominated in foreign currencies have been expressed in Taka terms at the rates of exchange
ruling on the balance sheet date.
2.6.4 Translation gain and losses
Gains or losses arising out of translation of foreign exchange have been included in the Profit and
Loss Statement and in Balance Sheet.
2.6.5 Foreign operations
The results of financial statements of the Bank whose functional currency is not Bangladesh Taka
are translated into Bangladeshi Taka at closing exchange rates while preparing the consolidated
financial statements.
2.7 Reporting period
The accounting period of the bank has been determined to be from 01 January to 31 December
each year and is followed consistently.
2.8 Cash flow statement
Cash Flow Statement is prepared principally in accordance with BAS 7 “Cash Flow Statement”
under direct method as per the guidelines of BRPD circular no.14 dated 25 June 2003. The Cash
Flow Statement shows the structure of and changes in cash and cash equivalents during the
year. Cash Flows during the period have been classified as operating activities, investing
activities and financing activities.
2.9 Statement of changes in equity
Statement of Changes in Equity has been prepared in accordance with BAS 1 “Presentation of
Financial Statements” and following the guidelines of Bangladesh Bank BRPD circular no.14
dated 25th June 2003.
2.10 Liquidity statement
The basis of the liquidity statement of assets and liabilities as on the reporting date is given
below:
Particulars Basis
Balance with other banks and financial institutions Maturity term
Investments Respective maturity terms
Loans and advances Repayment schedule basis
Fixed assets Useful life
Other assets Realization/ amortization basis
Borrowing from other banks, financial institutions and agents Maturity/ repayments terms
Deposits and others accounts Maturity term/ Previous trend
Other liabilities Payments/ adjustments schedule basis
160
with regulatory requirements i.e. Bangladesh Bank guideline. Provision has been made for
diminution in value of shares. Details of quoted and unquoted shares are shown in annexure- C-1
and annexure- C-2 respectively.
2.12.6 Investment and related income
(a) Income on investments other than shares is accounted for on accrual basis concept; and
(b) Dividend income on investment in shares is accounted for in the year when right has been
established.
2.13 Loans and advances
2.13.1 Presentation of loans and advances
i) Loans and advances are initially recognized at fair value, representing the cash advanced
to the borrower plus the net of direct and incremental transaction costs and fees. They are
subsequently measured at amortized cost and shown at gross amount instead of directly
reducing the carrying amount of assets while interest suspense and loan loss provision
against classified advances are shown under other liabilities in the Balance Sheet as per
BRPD Circular no. 14, dated June 25, 2003.
ii) Staff loan of Tk.15,692 million allowed at concessional rate as approved by the authority
are shown under advances as per BRPD Circular no. 14, dated 25 June 2003.
2.13.2 Interest on loans and advances
i) Interest is calculated on unclassified loans and advances and recognized as income
during the year;
ii) Interest calculated on classified loans and advances as per Bangladesh Bank Circulars is
kept in interest suspense account and credited to income on realization;
iii) Interest is calculated on daily product basis but debited to the party's loan account
quarterly. No interest is charged on loans and advances which are classified as bad and
loss;
iv) Total balance of loans and advances as on December 31, 2012 includes bad/loss loan Tk.
37,528 million (solo Tk.37,494 million) on which the Bank did not accrue any interest
because of deterioration of quality of loans and advances determined by the management
and on the basis of instructions contained in Bangladesh Bank Circulars as mentioned in
Note-2.13.3 of this financial statements; and
v) Interest suspense and penal interest, if any, calculated on classified loans and advances
are taken into income in the year of its receipt from the defaulting borrowers.
Land Nil
Building 2.50%
Furniture and Fixture 10.00%
Library Books 10.00%
Motor Vehicles 20.00%
Office Equipment 20.00%
Electric Materials 20.00%
Computer and Computer accessories 20.00%
c) Depreciation at the applicable rates is charged proportionately on additions made during the
year from the month of their acquisition if such assets are acquired in the first half of the
month. Depreciation is charged on assets retiring during the year for the period up to the end
of the month of their retirement if assets are retiring in the second half of the month.
d) Upon retirement of items of fixed assets the cost and accumulated depreciation are
eliminated from the accounts and the resulting gains or losses, if any, are transferred to Profit
and Loss Account.
e) Repairs and maintenances costs of fixed assets are treated as revenue expenditure and
charged to Profit and Loss Account when they are incurred. Depreciation of premises and
equipment is included in general and administrative expenses. Repairs and maintenances
are charged to general and administrative expenses and improvements of fixed assets are
capitalized. Gains and losses on disposals of fixed assets are reflected in other income.
2.15 Other Assets
2.15.1 Provision for other assets
Other assets have been classified as per BRPD Circular No. 14 dated June 25, 2003 of
Bangladesh Bank and necessary provisions made thereon accordingly and for items not covered
under the circular, adequate provisions have been made considering their realize ability.
2.15.2 Written off other assets
Other assets having no realistic prospect of recovery have been written off against full provision
without reducing the claimed amount of the Bank. Notional balances against other assets written
off have been kept to maintain the detailed memorandum records for such accounts/assets.
2.16 Reconciliation of inter branch transactions
Inter branch transactions are reconciled on a regular basis and balance of un-reconciled entries
at the closing date is accounted for according to its nature.
2.17 Assets pledged as security
162
The Bank has no secured liabilities except as mentioned in Note-10.2 to the financial statements
and there was no asset pledged as security against liabilities.
2.18 Revenue recognition
Revenue is recognized only when it is probable that the economic benefits associated with the
transaction will flow to the entity. Items are treated as revenue/income when there is no existence
of risk or uncertainty regarding their realize ability.
2.19 Fees and commissions
The recognition of fees revenue including commissions is determined by the purpose for the fees
and the basis of accounting for any associated financial instruments. Fees earned from services
that are provided over a specified service period are recognized over that service period. Fees
earned for the completion of a specific service or significant event are recognized when the
service has completed or the event has occurred.
Fees and commissions consist mainly of fees for opening of letters of credit and issuance of
guarantees in BDT and in foreign currencies. Fees and commissions are charged when they
become due. Commissions arising from foreign currency transactions are reported as income.
2.20 Interest paid and expenses
In terms of the provision of the Bangladesh Accounting Standard (BAS-1) Presentation of
Financial Statements, the interests and other expenses are recognized on accrual basis.
2.21 Retirement benefit scheme
The Bank operates two alternative retirement benefit schemes for its permanent employees,
elements of which are as under:
a) Contributory provident fund (CPF) scheme
i) Employees’ contribution 10%;
ii) Bank's contribution 10%;
iii) This fund is operated by a Board comprising of 6 Trustees and
iv) Employees enjoying contributory provident fund facilities are entitled to get
gratuity for 2 months last basic pay drawn for each completed year of service
subject to completion of minimum 10 years of service.
b) General pension fund scheme
i) Pension
The Bank operates a pension scheme. This fund is operated by a Board
comprising of 7 Trustees.
ii) Annual provision
Provisions are recognized if the Bank has a present legal or constructive obligation as a result of
past events, if it is probable that an outflow of resources will be required to settle the obligation,
and a reliable estimation can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle
the present obligation as of the Balance Sheet date, taking into account the risks and
uncertainties surrounding the obligation.
2.25 Loan commitments
No loan commitments are found to be designated at fair value through profit or loss under the fair
value option. All loan commitments remain as off balance sheet item.
2.26 Offsetting of asset and liability
The value of any asset or liability as shown in the balance sheet are not off-set by way of
deduction from another liability or asset unless there exist a legal right therefore. No such incident
existed during the year.
2.27 Post balance sheet events
No material event occurred after the Balance Sheet date that could affect the values stated in the
financial statements.
164
2.28 Segment reporting
For the purpose of Segment Reporting as per Bangladesh Financial Reporting Standard-8, the
following segments relating to revenue, expenses, assets and liabilities have been identified and
shown in the related notes accordingly as primary/secondary segments.
i) domestic operations in line with geographical segments;
ii) banking operations comprising of branches of the banking entity; and
iii) treasury operations comprising of the banking entity.
166
To support the activities of Treasury Department, an independent Treasury Back Office is
functioning through an independent organizational chain. The personnel working under Back
Office are very much well equipped to settle and reconcile the day to day deal transactions. Back
Office is responsible for verification of the deals and passing of entries in the books of accounts.
All Nostro accounts are reconciled on fortnightly basis and the management for its settlement
reviews outstanding entry beyond 15 days.
2.29.3 Asset Liability Management (ALM)
Asset and Liability Management is one of the key essentials of managing a Bank’s balance sheet
efficiently. In line with the ongoing reform and modernization program, Agrani Bank Limited has
retooled its ALM to deliver modern, dynamic, vibrant & futuristic process through the adaptation
of international best recognized practice.
Considering all the risk factors Agrani Bank Limited has established an effective ALM process for
assessing, analyzing and reviewing various kinds of risk exposures arising from the composition
and dynamics of the balance sheet. Asset Liability Committee (ALCOM) of the Bank is regularly
reviewing these risk exposures and advised for both the opportunities and threats to its liquidity
and balance sheet positions as well as positions of maturing assets and liquidity contingency
plan. The Bank maintained its liquidity at satisfactory level to meet the requirements of all types
of customers.
At present the markets are fraught with various kinds of risk around the corner. Each element of
risk is segmented, fragmented and quantified before it is loaded in the balance sheet of the Bank.
A clear balance sheet management strategy is articulated to senior management from the
beginning of the year so that they are fully aware of the ALM strategies.
2.29.4 Prevention of Money Laundering
Money laundering risk is defined as the loss of reputation and expenses incurred as penalty for
being negligent in prevention of money laundering. For mitigating the risks the Bank has a
designated Chief Compliance Officer at Head Office and compliance officers at branches, who
independently review the transactions of the accounts to verify suspicious transactions. Manuals
for prevention of money laundering have been established. Meticulous records of `Know Your
Customer (KYC)’ & Transaction Profile (TP) are being maintained. Cash Transaction Report
(CTR) and Suspicious Transaction Report (STR) (if any observed) are sent to competent
authority in strict adherence to Central Bank directives. Training has been continuously given to
the category of officers and executives for developing awareness and skills for identifying
suspicious activities.
2.29.5 Internal Control and Compliance
Operational loss may arise from error and fraud due to lack of internal control and compliance.
Management, through Internal Control and Compliance Division, controls operational procedure
of the Bank. According to the Bangladesh Bank guidelines, Agrani Bank Ltd. has introduced three
Units under Internal Control and Compliance (ICC). The three units are: Compliance, Monitoring
and Audit and Inspection. The Monitoring unit is named as Audit Implementation Division. Internal
Audit and Inspection Division undertakes periodical and special audit of the branches and
divisions at Head Office for review of operational effectiveness and internal/external compliance
requirements. The Board Audit Committee subsequently reviews the very serious lapses (VSLs)
identified by Audit and Inspection Division.
Related party relationship disclosure during the year 2012 (BAS-24 Related Party Disclosure)
Sl. Name of Related Party Related Party Transaction Natures
no. Relationship Amount Tk.
168
Annual Report 2012
170
Annual Report 2012
2.34 Name of the Directors and their interest in different entities (31-12-2012)
Mr. Ranjit Kumar Chakraborty, Chairman of the Audit Committee retired on December 27, 2012. New audit
committee was not formed for remaining days of 2012. However, new audit committee was formed on
February 20, 2013.
172
Annual Report 2012
4. The Committee looked into the bill purchase against local LCs by the 10 (Ten) Corporate
branches situated in Dhaka. The Committee also enquired about whether any malpractices were
done or not while purchasing such kinds of LCs and suggested putting forwards some
recommendations on mitigating on this score.
5. The Committee after making necessary corrections approved the inspection by Bangladesh Bank
on head office of this bank concerning foreign exchange based on the balance as on 01-11-2010
to 30-11-2011.
6. After making necessary corrections the committee also approved the inspection by Bangladesh
Bank on Head Office and 245 branches of this bank based on the balance as on 30-09-2011.
7. The committee recommended strengthening the activities of the Quality Assessment Team
(QAT).
8. The committee enquired about whether the quality/standard of audit has improved or not after
formation of Circle Audit Cell.
9. The committee recommended Credit Risk Evaluation on the basis of BASEL II guidelines.
10. The committee recommended “Refreshers Course” for all of the auditors of Audit and Inspection
Division.
Prof. Mohammad Abu Taleb Member Professor A/1, Hazi Md. Mohsin Hall,
Department of Banking House Tutors’ Quarter,
University of Dhaka. University of Dhaka.
Md. Habibul Alam Member Deputy General Manager House No. 39 (3rd Floor),
Secretary Agrani Bank Limited Road No. 15, Monsurabad
Islamic Banking Unit, R/A, Adabar, Dhaka.
Head Office, Dhaka.
2.37 General
a) Figures have been rounded off to the nearest taka.
b) Prior Year’s figures have been shown for comparison purposes and rearranged wherever
necessary to conform to current year’s presentation.
c) Conversion rate is calculated based on the simple average of buying and selling rate.
174
31-12-2012 31-12-2011
Taka Taka
3 Cash
3.1 Cash in Hand
Local Currency 3,308,182,104 2,994,620,166
Foreign Currencies 326,994,676 269,058,188
3,635,176,780 3,263,678,354
3.2 Balance with Bangladesh Bank and its agent bank:
Bangladesh Bank (Note - 3.2.1) 15,736,352,049 13,962,448,168
Sonali Bank Limited as agent of Bangladesh Bank (Note - 3.2.2) 1,311,494,191 1,702,048,335
17,047,846,240 15,664,496,503
Total (Note 3.1+3.2) 20,683,023,020 18,928,174,857
3.2.1 Balance with Bangladesh Bank
Local Currency 15,711,043,756 13,927,016,183
Foreign Currencies 25,308,293 35,431,985
15,736,352,049 13,962,448,168
3.2.2 Balance with Sonali Bank Limited
Local Currency 1,311,494,191 1,702,048,335
Foreign Currencies - -
1,311,494,191 1,702,048,335
3.3 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR):
Cash Reserve Requirement and Statutory Liquidity Ratio have been calculated and maintained as per Section 33 of
the Bank Companies Act 1991 and BRPD Circular No (P)683/2005-2996 dated 25-08-05.
As per MPD Circular No.04 dated 01 December, 2010, the amount of CRR required to be maintained @ 6% of total
demand and time liabilities daily on bi-weekly average basis subject to the condition that the amount of CRR so
maintained should not be less than @ 5.5% in any day effecting from 15 December, 2010.
As per MPD circular # 4 dated 01 December 2010 daily CRR may kept @ 5.5% on daily basis. But bi-weekly average
amount not below 6% of Total Time & Demand Liabilities.
176
31-12-2012 31-12-2011
Taka Taka
5.1 Commercial Banks:
The City Bank Limited - 700,000,000
Southeast Bank Limited - 300,000,000
Mercantile Bank Limited 500,000,000 -
Prime Bank Limited 1,500,000,000 -
Uttara Bank Limited 700,000,000 -
2,700,000,000 1,000,000,000
6 Investments:
a. Government Securities:
Treasury Bills (Annexure-B.1) 6,732,210,979 8,354,466,626
Treasury Bonds (Annexure-B.2) 64,435,741,086 57,403,201,219
Prize Bonds (at cost) 13,794,600 13,261,900
Sub total 71,181,746,665 65,770,929,745
b. Other Investments:
Other Bonds (Annexure-B.2) 1,480,000,000 1,580,000,000
Shares at cost (Annexure-C.1, C.2) 19,378,058,462 17,220,323,112
Debenture (at cost) (Annexure-D) 380,000,019 760,000,019
Sub total 21,238,058,481 19,560,323,131
Grand Total (a + b) 92,419,805,146 85,331,252,876
6.1 Maturity Grouping of Investments:
On demand 2,095,221,295 1,898,017,627
Less than three months 2,734,653,916 2,423,620,218
More than three months but less than one year 25,791,552,333 23,180,174,532
More than one year but less than five years 26,392,742,319 24,131,584,092
More than five years 35,405,635,283 33,697,856,407
92,419,805,146 85,331,252,876
6.2 Value of Investments:
Treasury Bills:
Treasury Bills (91 Days) 931,512,415 543,459,254
Treasury Bills (182 Days) 1,508,533,040 2,330,457,498
Treasury Bills (364 Days) 4,292,165,524 5,480,549,874
Total Treasury Bills: 6,732,210,979 8,354,466,626
Treasury Bonds 64,435,741,086 57,403,201,219
Other Bonds 1,480,000,000 1,580,000,000
Prize Bonds 13,794,600 13,261,900
Debentures 380,000,019 760,000,019
Shares 19,378,058,462 17,220,323,112
85,687,594,167 76,976,786,250
92,419,805,146 85,331,252,876
6.3 Net Investments:
Carrying amount 92,419,805,146 85,331,252,876
Less: Provision (Note - 12.11) 3,208,098,400 1,565,785,362
Net Investment 89,211,706,746 83,765,467,514
6.4 Shares at cost under ‘Other Investments’ include Tk.3,000,000,000 share purchased under sale and buy back
guarantee, as detailed below:
i) The investment in shares includes 62,50,000 shares of Unique Hotel and Resorts Limited purchased at a consideration of Tk.200
per share from Crescent Limited, a shareholder of Unique Hotel & Resorts Limited under sell and buy back agreement signed
among Agrani Bank Limited, Crescent Limited and Beximco Holding Limited on November 10, 2010 for the period of one year
commencing from November 10, 2010. Under this agreement Beximco Holding Limited has given an undertaking to act as a “Buy
back guarantor” for a period of one year commencing from November 10, 2010 at 20% annual markup on such purchase price.
Beximco Holding Limited has also given corporate guarantee for payment of the guaranteed liabilities on November 11, 2010. Later
on the buy back period of this agreement was extended upto 31st July 2012 by a new supplementary agreement. The Unique Hotel
shares are yet to be transferred in the name the Bank.
ii) The investment in shares includes 1,35,00,000 shares of Bextex Limited purchased at a consideration of Tk. 80 per share from
New Dhaka Industries Ltd., a shareholder of Bextex Limited under sell and buy back agreement signed among Agrani Bank Limited,
New Dhaka Industries Ltd. and Beximco Holding Limited on November 28, 2010 for the period of one year commencing from
November 28, 2010. Under this agreement Beximco Holding Limited has given an undertaking to act as a “Buy back guarantor”
for a period of one year commencing from November 28, 2010 at 20% annual markup on such purchase price. Beximco Holding
Limited has also given corporate guarantee for payment of the guaranteed liabilities on November 28, 2010. Later on additional
12,500,000 shares of Bextex Ltd. was taken in 2011. The buy back period of the agreement was extended upto 31st July 2012 by
a new supplementary agreement. Subsequently Bextex Ltd. is amalgamated with Beximco Ltd at the ratio of 5:1, i.e. 26,000,000
shares of Bextex Ltd has converted into 5,200,000 shares of Beximco Ltd. The Beximco Limited shares have not yet been issued/
transferred in the name of the Bank.
178
31-12-2012 31-12-2011
Taka Taka
7.3.a Disclosure for significant concentration
180
31-12-2012 31-12-2011
Taka Taka
7.10.a Provision for loans and advances
Provision against classified loan (Note - 12.5) 32,120,296,362 9,421,396,603
Provision against unclassified loan (Note - 12.6) 1,834,733,863 2,193,155,000
Provision special mention account (Note - 12.7) 497,205,251 478,837,070
Provision for consumer financing (Note - 12.8) 208,616,315 256,675,000
34,660,851,791 12,350,063,673
7(a) Consolidated loans, advances and leases/investments
Agrani Bank Limited 212,663,017,332 194,085,656,173
Agrani Equity & Investment Limited 437,944,231 280,363,679
Agrani SME Financing Limited 447,013,061 461,111,340
Agrani Exchange House Pvt. Limited Singapore - -
Agrani Remittance House SDN. BHD. Malaysia - -
213,547,974,624 194,827,131,192
Less: Overdraft to Agrani Equity & Investment Limited 2,458,506,286 1,021,818,305
211,089,468,338 193,805,312,887
8 Fixed assets including land, buildings, furniture and fixtures
Cost/ Valuation:
Balance at the beginning of the year 12,479,108,079 6,518,138,178
Addition during the year 433,783,331 459,989,855
Revaluation during the year - 5,512,538,171
Disposal / Transfer during the year (44,223,206) (11,558,125)
Balance at the end of the year 12,868,668,204 12,479,108,079
Less: Accumulated Depreciation
Balance at the beginning of the year 1,252,458,334 1,082,238,820
Charge for the year 262,712,311 181,777,639
Adjustment for disposal / transfer (27,229,665) (11,558,125)
Balance at the end of the year 1,487,940,980 1,252,458,334
Written Down Value (WDV) 11,380,727,224 11,226,649,745
8(a) Consolidated Fixed assets including land, buildings, furniture and fixtures
Written Down Value (WDV)
Agrani Bank Limited 11,380,727,224 11,226,649,745
Agrani Equity & Investment Limited 8,258,186 3,357,893
Agrani SME Financing Limited 3,425,717 835,593
Agrani Exchange House Pvt. Limited Singapore 6,684,552 2,698,185
Agrani Remittance House SDN. BHD. Malaysia 2,084,156 1,794,569
11,401,179,835 11,235,335,985
9 Other Assets
Investment in shares of subsidiary companies (Note - 9.1) 2,615,424,168 2,515,424,168
Stationery, stamps, printing materials etc. 88,892,934 102,517,045
Accrued Income (Note - 9.3) 1,945,278,372 1,756,664,047
Receivable From Govt. (Note - 9.9) 9,092,323 9,690,273
Discount Receivable on Treasury Bills 293,342,434 382,436,433
Advance Deposits & prepayments 7,594,416 5,291,932
Advance Tax Paid (Annexure-F) 6,486,620,470 5,580,289,786
Advance Rent 124,024,499 69,682,684
Suspense Account (Note - 9.2) 6,157,435,711 5,625,425,973
Demonetized Notes 187 187
Debit balance of Al-Rajhi Foreign Exchange 347,892,609 347,892,609
D.D paid without advice 896,250,418 831,840,254
Net Balance with Pakistani Bank (Note -9.4) - -
Net Balance with Indian Bank (Note - 9.5) - -
Protested Bills 48,958,322 48,958,325
Exempted Loans 175,297,550 173,805,796
Interest on Exempted Loans 470,174,179 469,575,660
Deferred Tax Assets (Note - 9.6) 4,398,529,766 2,796,355,659
Foreign Correspondent draft paid 7,642,595 6,059,156
Indian Bank 28,550 28,550
Software Purchase 162,412,689 101,329,460
Valuation Adjustment (Note - 9.8) 6,648,381,639 7,977,881,639
Dividend Receivable from Preference Share 444,376,711 150,000,000
Work in Progress for Consulting of Bank building 464,659,316 2,833,672
Receivable from Agrani SME Financing Company Limited 55,672,663 -
Branch Adjustment ( Note - 9.7) 1,728,168,619 5,682,077,789
Total 33,576,151,140 34,636,061,097
9.2 (i) Sundry debtors- staff & others and clearing adjustment
An amount of Tk.43,229,094 remain un-recovered/unadjusted over one year and that amount has been provided in
the accounts.
Pakistan a/c 1 1
Exchange Transaction a/c. 1 1
2 2
Less:- CBL General (Pak) a/c (Cr.) 2 2
- -
Net balance with Pakistani bank was Tk. 33,842,386.This amount was written off in the year 2005 keeping 1.00 taka
balance to maintain the record.
182
31-12-2012 31-12-2011
Taka Taka
9.6 Deferred Tax:
Deferred tax has been computed in accordance with provision of BAS -12 based on taxable temporary differences in
the carrying amount of the assets/liabilities and their tax base as follows:
i) Written down value of fixed assets
a. Carrying amount (excluding land) 1,507,774,058 1,169,128,095
b. Tax base 1,135,418,134 957,401,341
Taxable/(deductible) temporary difference (a-b) 372,355,924 211,726,754
Less: Adjustment for Deferred Tax Liability for revaluation of Land and Building
Fixed assets and provision for bad and loss loan and advances have been considered during calculation of deferred
tax due to having considerable taxable temporary differences. As per calculation of Deferred Tax Assets balance for
the year ended December 31, 2012 has increased by the amount of Tk.1,602,174,107 which credited to profit and
loss account.
The carrying amount has been arrived at by estimating temporary differences (based on analysis of prior years’
relevant figures) on account of bad/loss debts that are likely to be written off in future years out of the year-end total
amount of provision for bad and loss loans and advances Tk.23,684,746,328.
9.7 Branch adjustment:
Debit balance
Main Office Account (M.O) 1,128,454,536,019 1,496,528,411,380
New General Account (N.G) 1,124,266,188,749 529,885,560,999
Instant Financial Massaging System (IFMS) 21,258,177,278 21,261,476,078
Inter Branch Acc. for Online Transaction 30,702,618,825 535,420,758
2,304,681,520,871 2,048,210,869,215
Less:- Credit balance
Main Office Account (M.O) 1,126,647,447,478 1,014,012,886,358
New General Account (N.G) 1,123,819,905,104 1,007,159,609,107
Instant Financial Massaging System (IFMS) 21,278,495,787 21,285,434,869
Inter Branch Acc. for Online Transaction 31,207,503,883 70,861,092
2,302,953,352,252 2,042,528,791,426
1,728,168,619 5,682,077,789
Out of 06 debit entries (NG) of 2006, 3 debit entries involving Tk. 1.35 lacs relating to Al-Rajhi Bank have already
been reconciled and rest 3 debit entries to the tune of Tk. 26.89 lacs in connection with fraudulent activities for Tk.
18.90 lacs is still unreconciled. Only 1 credit entry for Tk 7.88 lac is still un-reconciled. Provision has been kept for
the entire amount of Tk. 28.14 lacs against the 3 debit entries of 2006. On the other hand Bangladesh Bank letter no.
DOS(S)/1155/53/2013-29 Dated: 12-05-2013 allowed a period upto 31st May, 2013 for reconciliation of outstanding
entries. Meanwhile bank has requested Bangladesh Bank for extending time period for provisioning and reconciling
of outstanding entries for the period of up to December 31, 2013 with the letter no. Recon/NG/Final/217/2013, Dated:
29-05-2013. It is to be mentioned that Bangladesh Bank has given verbal consent for those up to September 2013.
However bank has taken a crash program for immediate reconciliation of outstanding entries.
During the year net balance of branch adjustment arrived as debit, therefore the balance has been shown under head
“Other Assets “.The Net Debit balance of Branch Adjustment account arrived due to transit in responding entries.
184
31-12-2012 31-12-2011
Taka Taka
10.4.2 Long Term Borrowing
10(a) Consolidated borrowing from other banks, financial institutions and agents
186
31-12-2012 31-12-2011
Taka Taka
12 Other Liabilities
Interest suspense (Note - 12.1) 7,354,185,556 6,014,744,101
Penal interest 726,803 1,594,625
Provision for expenses (Note - 12.2) 5,364,484,357 3,933,471,593
Provision for Auditors Fee (Note - 12.3) 3,000,000 2,500,000
Sundry creditors 1,341,583,900 1,851,135,954
Tax deducted at source 537,732,747 195,253,014
VAT on services 97,583,966 171,800,626
Excise duty 289,162,870 255,733,540
Levy on interest payment 62,332,877 42,470,582
Levy & Surcharge on interest payment (Bonds) 834,692 598,405
Provision for Taxation (Note - 12.4 & Annexure-F) 10,574,933,042 8,994,933,042
Provision for classified laons & advances (Note - 12.5) 32,120,296,362 9,421,396,603
General provision maintained against UC loan (Note - 12.6) 1,834,733,863 2,193,155,000
General provision for special mention account (Note - 12.7) 497,205,251 478,837,070
3 % General reserve for consumer financing (Note - 12.8) 208,616,315 256,675,000
Provision for off balance sheet exposures (Note - 12.10) 1,124,187,533 1,079,839,185
Provision for investment (Note - 12.11) 3,208,098,400 1,565,785,362
Provision for Other Assets (Note - 12.12) 2,209,862,009 1,758,379,191
Provision for Ex-Gratia 29,613,270 29,771,351
Provision for Incentive Bonus (Note - 12.13) 491,022,169 820,590,843
Exchange Equalization Fund 72,341,228 72,341,228
Exchange adjustment 33,231,752 33,231,752
Employees super annuation fund (Note - 12.14.a) - 3,752,720,769
Employees gratuity fund (Note - 12.14.b) - 199,000,372
Death relief grant scheme (Note - 12.15) 83,759,771 76,459,771
Employees Benevolent Fund 102,516,428 101,271,134
Reserve for unforeseen losses 7,278,112 7,278,112
Doctors self employment program 1,600,000 1,600,000
Collection accounts 6,147,922 10,158,194
Cash incentive to garments exporters 2,307,174 3,155,290
10% cash subsidy to exporting spinning mills - 782,502
Cash incentive to leather goods exporters - 1,007,644
Cash incentive to frozen foods exporters - 1,114,000
Agriculture to Agri-Product Funds - 79
SPL account OPEC fund 70,508,242 70,508,242
SPL account MEDU fund 488,120,427 508,036,532
Export development fund - 512,565,683
Govt. bond for land mortgage loan 840,897 840,897
Special block account 187 187
SPL block account (DD,TT, MT & PO) 9,730,947 9,730,947
Unclaimed deposit 10 years & above (Note - 12.16) 2,040,190 4,708,588
Service charge on CIB report 12,076,640 1,630,191
Provision for balance of bilateral trade 2 2
Customer Fund Adjustment Account 703,125,101 3,508,328
Vostro Account 54,769,477 160,854,029
SIDR 389,114 389,114
ADIP Project Fund 21,808,685 22,054,442
Payable to ICB against sale of share 23,535,450 8,677,778
Payable to Agrani SME Financing Company Limited - 270,000,000
Interest waived on staff house building loan 3,000,623 9,279,828
69,049,324,351 44,911,570,722
12.1 Interest Suspense Account:
Balance at the beginning of the year 6,014,744,101 5,784,977,460
Transferred during the year 3,407,383,008 1,811,504,021
Transferred to Income during the year (698,057,548) (820,872,092)
Amount waived/ written off during the year (1,369,884,005) (760,865,288)
Balance at the end of the year 7,354,185,556 6,014,744,101
188
31-12-2012 31-12-2011
Taka Taka
12.12 Provision for Other Assets:
Protested bill (Note - 12.12.a) 48,958,322 48,958,325
Sundry Debtors Staff & Others 78,410,709 37,013,376
Clearing Adjustment 2,643,747 811,986
Suspense Accounts Army Pension Paid 1,038,857,427 635,464,654
Legal Charges 845,933 -
CBL Pak A/c 2 2
BCCI Bank-London (Note - 12.12.b) 17,307,731 15,382,983
Bank of Ceylon 500,000 500,000
Balance with Al-Rajhi Foreign Exchange 347,892,609 347,892,609
Fixed Assets 21,913,328 21,913,328
Branch Adjustment (Note - 12.12.c) 5,884,000 5,884,000
Agri credit exemption on river erosion 1,176,472 1,176,472
Exempted Loans & Interest on Exempted Loans (Note - 12.12.d) 645,471,729 643,381,456
2,209,862,009 1,758,379,191
12.12.a Provision for protested bills
Balance at the beginning of the year 48,958,325 47,519,306
Addition during the Year 666,812 1,439,019
Provision add back during the year (666,815) -
Balance at the end of the year 48,958,322 48,958,325
Protested Bills arises due to accidental loss of fraud, robbery, theft etc.
12.16 As per section 35 of the Bank Companies Act 1991, this amount should be transferred to Bangladesh bank on
completion of the formalities mentioned in this section.
The paid up capital of the Bank is Tk.9,912,940,400 divided into 99,129,404 ordinary shares of Tk.100.00 each of
which 99,129,392 fully paid up ordinary shares of Tk.100 each issued to the Government of the People’s Republic
of Bangladesh represented by Secretary, Finance Division, Ministry of Finance of the Government of the People’s
Republic of Bangladesh and other 12 (Twelve) fully paid up ordinary shares of Tk.100 each issued to other 12
(Twelve) shareholders of the Bank who are nominated by the Government of the People’s Republic of Bangladesh.
The paid up Capital of the Bank was increased to Tk.9,912,940,400 by issuing 90,117,640 bonus shares as approved
in the fifth annual general meeting of the Bank in 2012.
Basic earnings per share has been calculated in accordance with BAS -33 “ Earnings per Share”. This has been
calculated by dividing the net profit for the year attributable to ordinary shares by the weighted average number of
ordinary shares outstanding during the year. Previous year’s figures have been adjusted for the issue of bonus shares
during the year.
13.4 Minimum Capital Requirement (MCR) under Risk Based Capital (Basel-II):
Amount in Crore
A. Eligible Capital: 2012 2011
1. Tier-1 (Core Capital ) (1,319.54) 721.98
2 .Tier-2 (Supplementary Capital) - 665.47
3. Tier-3 (eligible for market risk only) - -
4. Total Eligible Capital (1+2+3): (1,319.54) 1,387.45
B. Total Risk Weighted Assets (RWA): 21,455.30 21,411.28
C. Capital Adequacy Ratio (CAR) (A4 / B) X 100 -6.15% 6.48%
D. Core Capital to RWA (A1 / B) X 100 -6.15% 3.37%
E. Supplementary Capital to RWA (A2 / B) X 100 - 3.11%
F. Minimum Capital Requirement (10% of RWA) 2,145.53 2,141.13
G. Capital Surplus / (Shortfall) (3,465.07) (753.68)
Consequent Capital Shortfall results in increase of provision due to soaring of classified loans and advances. Capital
Shortfall will be met up by cash/bond to be infused from the Ministry of Finance (likely Tk. 2,500.00 crore, allocated in
the financial year 2013-2014).
190
31-12-2012 31-12-2011
Taka Taka
13.4(a) Consolidated Minimum Capital Requirement (MCR) under Risk Based Capital (Basel-II):
Amount in crore
A. Eligible Capital: 2012 2011
1. Tier-1 (Core Capital ) (1,225.56) 818.77
2 .Tier-2 (Supplementary Capital) - 793.53
3. Tier-3 (eligible for market risk only) - -
4. Total Eligible Capital (1+2+3): (1,225.56) 1,612.30
B. Total Risk Weighted Assets (RWA): 21,886.55 22,176.08
C. Capital Adequacy Ratio (CAR) (A4 / B) X 100 -5.60% 7.27%
D. Core Capital to RWA (A1 / B) X 100 -5.60% 3.69%
E. Supplementary Capital to RWA (A2 / B) X 100 - 3.58%
F. Minimum Capital Requirement (10% of RWA) 2,188.66 2,217.61
G. Capital Surplus / (Shortfall) (3,414.22) (605.31)
Consequent Capital Shortfall results in increase of provision due to soaring of classified loans and advances. Capital
Shortfall will be met up by cash/bond to be infused from the Ministry of Finance (likely Tk. 2,500.00 crore, allocated in
the financial year 2013-2014).
Capital shortfall has been calculated as per ‘Guidelines on Risk Based Capital Adequacy’ of Bangladesh Bank. Due
to change of classification rule and taken into qualitative judgment pointed out by the regulators and external auditors,
classified loans have increased and accordingly requirement of provision has also been increased significantly which
has been fully accounted for in the financial statements. Moreover, valuation adjustment has also been added with the
capital shortfall. If the valuation adjustment is not added with the capital shortfall, it will come down to Tk. 2,749.37 crore.
14 Statutory Reserve
Balance at the beginning of the year 4,139,818,028 2,670,821,390
Transferred during the year - 1,468,996,638
Closing balance 4,139,818,028 4,139,818,028
This has been made in accordance with Section 24 of the Bank Companies Act, 1991 and shall be maintained until it
equals to the Paid-up Capital.
192
31-12-2012 31-12-2011
Taka Taka
16 Asset Revaluation Reserve
Balance at the beginning of the year 7,538,417,849 2,179,830,970
Transferred during the year (6,394,258) 5,512,538,171
Less: Deferred Tax Liability (Note - 9.6) - (153,951,292)
7,532,023,591 7,538,417,849
16(a) Consolidated asset revaluation reserve
Agrani Bank Limited 7,532,023,591 7,538,417,849
Agrani Equity & Investment Limited - -
Agrani SME Financing Limited - -
Agrani Exchange House Pvt. Limited Singapore - -
Agrani Remittance House SDN. BHD. Malaysia - -
7,532,023,591 7,538,417,849
20 Minority Interest
Share Capital 1,800 -
Retained Earnings 32 1,800
1,832 1,800
Liability will be created for the Bank by the sales amount of Inland Travelers Cheque, Upahar Cheque, Shanchay Patra
and Agrani Bank Shilpa Unnayan Bond, as such as saleable price of present stock of such instruments have been
considered as contingent liabilities.
194
31-12-2012 31-12-2011
Taka Taka
Expenses:
Interest, fees and commission 19,912,055,753 11,965,996,593
Losses on loans and advances 26,130,622,794 6,068,116,652
Administrative expenses 5,919,446,497 5,324,370,100
Other operating expenses 840,880,564 797,914,767
Depreciation on banking assets 262,712,311 181,777,639
53,065,717,919 24,338,175,751
23 Interest Income
a. Interest on Loans and Advances:
Interest on Rural Credit 640,782,294 554,792,002
Interest on Weavers Credit 1,177,566 1,597,603
Interest on Industrial Credit 4,884,014,235 3,524,193,228
Interest on Jute Advance 772,657,043 737,456,110
Interest on Leather Credit 295,423,964 227,333,210
Interest on Staff Loans 610,718,724 584,306,711
Interest on Loan-Others 5,319,743,109 4,539,734,660
Interest on Small and Micro Credit 245,952,396 241,031,628
Interest on Overdrafts 1,780,840,476 1,356,241,607
Interest on Cash Credit 5,605,935,790 4,136,434,153
Interest on Packing Credit 64,801,591 65,532,283
Interest on Loan against Impo. Merchandise 119,158,095 119,079,743
Interest on Payment Against Document 2,244,740,703 2,729,289,408
Interest on Foreign Bills Purchased 290,232,175 153,539,913
Interest on Inland Bills Purchased 146,732,831 22,020,904
Sub-total 23,022,910,992 18,992,583,163
b. Interest on Balance with other Banks and Financial Institution:
Interest on call loans to Banks 29,593,720 21,307,986
Interest received from local banks 316,840,785 261,643,117
Interest received from foreign banks 5,394,870 7,211,085
Sub-total 351,829,375 290,162,188
c. Income from write off Loans and advances 520,051,838 3,151,927,443
Total (a+b+c) 23,894,792,205 22,434,672,794
25 Investment income
Interest on Debenture 34,987,877 52,210,685
Dividend on Shares 429,171,499 215,517,570
Discount on 5, 10 & 3 years T&T bond 21,579,860 24,925,005
Interest on 25 years Govt. jute bond 82,408,869 -
Interest on 5,10,15 & 20 years govt. Treas. bond 4,564,594,213 3,198,512,136
Discount on treasury bills 625,540,870 399,586,756
5 Years SPL Treasury Bond (kohinoor) 1,552,042 5,058,000
Govt. Treasury Bond (BPC) 959,000,000 141,572,600
Govt. Treasury Bond (BJMC) 333,401,369 65,190,137
Prime Bank Limited Bond 20,728,511 20,700,000
Mutual Trust Bank Limited Bond 36,049,314 36,000,000
National Bank Limited Bond 23,068,265 23,000,000
BRAC Bank Limited Subordinated Bond 125,915,239 93,750,000
Orascom Telecom BD Bond 47,775,000 59,221,726
Northern Power Solutions Ltd. Bond 90,000,000 40,635,615
Profit on Sale of Shares 12,878,225 111,272,517
Profit on Sale of Securities 635,440,374 739,309,048
8,044,091,527 5,226,461,795
The above investment incomes were earned from Dhaka region only.
196
31-12-2012 31-12-2011
Taka Taka
198
31-12-2012 31-12-2011
Taka Taka
30 Legal expenses
Court fees 1,611,798 603,853
Lawyer’s fees 6,329,592 5,325,745
Other legal expenses 12,457,781 8,142,127
20,399,171 14,071,725
30(a) Consolidated Legal Expenses
Agrani Bank Limited 20,399,171 14,071,725
Agrani Equity & Investment Limited 410 -
Agrani SME Financing Limited 5,480 -
Agrani Remittance House SDN. BHD. Malaysia - -
20,405,061 14,071,725
31 Postage, stamp, telegram & telephone
Postages 58,884,923 57,774,290
Telegram Charges 2,095,841 331,108
Telex & Teleprinter charges 71,122,817 43,100,750
Stamps 45,170 227,331
Telephone Charges (Office) 16,963,426 15,653,938
Telephone Charges (Residence) 1,779,894 1,471,112
Trunk-call charges 105,636 104,362
150,997,707 118,662,891
31(a) Consolidated postage, stamp, telegram & telephone
Agrani Bank Limited 150,997,707 118,662,891
Agrani Equity & Investment Limited 55,073 25,146
Agrani SME Financing Limited 166,606 -
Agrani Exchange House Pvt. Limited Singapore 1,305,428 1,388,561
Agrani Remittance House SDN. BHD. Malaysia 312,632 246,170
152,837,445 120,322,767
32 Stationery, printing, advertisement
Security Stationery 25,062,240 25,037,635
Printing Stationery 93,826,134 85,555,459
Paper & Table Stationery 23,494,663 20,323,776
Advertisement publicity charge (Tender) 1,615,603 1,052,774
Advertisement publicity charge (Development) 34,860,837 44,900,000
178,859,477 176,869,644
32(a) Consolidated Stationery, printing, advertisement
Agrani Bank Limited 178,859,477 176,869,644
Agrani Equity & Investment Limited 169,166 149,730
Agrani SME Financing Limited 1,169,990 4,320
Agrani Exchange House Pvt. Limited Singapore 990,469 816,287
Agrani Remittance House SDN. BHD. Malaysia 336,989 213,427
181,526,091 178,053,409
33 Chief executive’s salary and allowances
Salary 4,700,000 4,700,000
Allowances - -
4,700,000 4,700,000
33(a) Consolidated Chief executive’s salary and allowances
Agrani Bank Limited 4,700,000 4,700,000
Agrani Equity & Investment Limited - -
Agrani SME Financing Limited 120,000 360,000
Agrani Exchange House Pvt. Limited Singapore - -
Agrani Remittance House SDN. BHD. Malaysia - -
4,820,000 5,060,000
34 Fees & allowances of Directors
Fees for attending board meetings 3,473,000 3,875,500
Allowances - 519,800
3,473,000 4,395,300
34(a) Consolidated Fees & allowances of Directors
Agrani Bank Limited 3,473,000 4,395,300
Agrani Equity & Investment Limited 502,750 727,500
Agrani SME Financing Limited 395,000 -
Agrani Exchange House Pvt. Limited, Singapore - -
Agrani Remittance House SDN. BHD., Malaysia 5,078,223 2,992,855
9,448,973 8,115,655
35 Auditors’ Fees
Audit Fee (Statutory Audit) 3,237,344 2,500,000
Vat on Audit Fee @ 15% - -
Audit Fee (Others) - 30,000
3,237,344 2,530,000
200
31-12-2012 31-12-2011
Taka Taka
37(a) Consolidated Other Expenses
Agrani Bank Limited 840,880,564 797,914,767
Agrani Equity & Investment Limited 157,023,200 59,949,888
Agrani SME Financing Limited 5,715,870 372,216
Agrani Exchange House Pvt. Limited Singapore 14,104,183 8,543,715
Agrani Remittance House SDN. BHD. Malaysia 7,104,435 4,027,249
1,024,828,252 870,807,835
38 Provision for loans & advances
Provision for Bad & Doubtful Loans & Advances ( Note - 12.5) 25,276,133,201 3,733,593,789
Unclassified loans & advances (Note -12.6) (358,421,137) 276,825,567
Special Mention Account (Note - 12.7) 18,368,181 366,770,070
3% General reserve for consumer financing (Note -12.8) (48,058,685) (12,155,000)
24,888,021,560 4,365,034,426
38(a) Consolidated provision for loans & advances
Agrani Bank Limited 24,888,021,560 4,365,034,426
Agrani Equity & Investment Limited 74,009,947 928,064,519
Agrani Exchange House Pvt. Limited Singapore - -
Agrani Remittance House SDN. BHD. Malaysia - -
24,962,031,507 5,293,098,945
39 Other provisions
Provision for off balance sheet exposures (Note - 12.10) 44,348,348 210,533,944
Provision for investment(Note - 12.11) 1,642,313,038 285,760,668
Incentive Bonus/Ex-Gratia 430,000,000 800,000,000
Staff Benevolent Fund 100,000,000 100,000,000
Add back Auditors Fee (VAT) - (185,250)
Add back Incentive Bonus (200,000,000)
Add back Provision for Expenses - -
202
31-12-2012 31-12-2011
Taka Taka
45 Cash payment for other operating activities
Auditors Fee 2,737,344 1,265,000
Directors’ fees and allowances 3,473,000 4,395,300
Legal charges 20,453,379 14,855,020
Other expenses 911,970,253 667,481,376
Postage, stamps, telegrams and telephone 151,080,777 118,863,902
Rent, taxes, insurance lighting etc. 487,528,596 393,265,860
Repairs to fixed assets 246,603,773 150,669,261
1,823,847,122 1,350,795,719
45(a) Consolidated Cash payment for other operating activities
Agrani Bank Limited 1,823,847,122 1,350,795,719
Agrani Equity & Investment Limited 20,580,873 264,508,337
Agrani SME Financing Limited - -
Agrani Exchange House Pvt. Limited Singapore 72,998,246 32,427,402
Agrani Remittance House SDN. BHD. Malaysia 24,095,411 14,749,009
1,941,521,652 1,662,480,467
46(a) Consolidated Operating profit before changes in operating assets & liabilities
Agrani Bank Limited 9,536,015,522 13,169,032,602
Agrani Equity & Investment Limited (72,748,949) (112,694,701)
Agrani SME Financing Limited 50,143,304 (1,514,077)
Agrani Exchange House Pvt. Limited Singapore 14,130,359 9,426,177
Agrani Remittance House SDN. BHD. Malaysia 1,336,306 874,176
9,528,876,542 13,065,124,177
47 Cash & cash equivalent at the end of the period
Cash in hand & with Bangladesh Bank & Sonali Bank Ltd. 20,683,023,020 18,928,174,857
Balance with Other Banks 5,293,695,066 3,612,914,097
Money at Call & Short Notice 2,700,000,000 1,000,000,000
Prize Bonds 13,794,600 13,261,900
28,690,512,686 23,554,350,854
47(a) Consolidated Cash & cash equivalent at the end of the period
Agrani Bank Limited 28,690,512,686 23,554,350,854
Agrani Equity & Investment Limited 9,758,374 1,344,916
Agrani SME Financing Limited 775,810,609 507,102,629
Agrani Exchange House Pvt. Limited Singapore 103,930,545 107,897,309
Agrani Remittance House SDN. BHD. Malaysia 125,513,407 80,915,943
29,705,525,621 24,251,611,650
Less: Balance with Agrani Bank Ltd. 785,540,364 508,382,955
28,919,985,257 23,743,228,695
Current liabilities:
Borrowing from other banks, FI and agents 10,064,652,429 25,746,482,823
Deposits 62,241,808,202 55,431,451,058
Provisions and other liabilities 7,755,320,375 6,239,193,275
Total Current liabilities 80,061,781,006 87,417,127,156
Current Assets exceeding Current Liabilities 48,230,761,014 58,594,567,825
Current Ratio:
Current assets 128,292,542,020 146,011,694,981
Current liabilities 80,061,781,006 87,417,127,156
1.60 1.67
204
50 Categories of financial assets and financial liabilities in accordance with Bangladesh Financial Reporting Standard (BFRS-7)
Financial Liabilities
Financial Liabilities at fair
value through profit or loss - - - - - - - -
Financial liabilities measured
at amortised cost 304,065 304,065 215,114 215,114 304,770 304,770 280,440 280,440
Non-Financial Liabilities-
provision 63,117 63,117 33,225 33,225 61,859 61,859 42,438 42,438
Total liabilities 367,182 367,182 248,339 248,339 366,629 366,629 322,878 322,878
Detailed Classifications of Financial Instruments in Annexure-H.
51 Reconciliation between presentation of Assets & Liabilities in fair value as mentioned in note - 50 and balance sheet:
Group Bank
Assets presented at fair value as per note # 50 367,293 382,145
Less:Market price of assets not considered as fair value (11,613) 3,429
Value of assets as per balance sheet 378,906 378,716
206
The table below summarises the exposure to foreign exchange rate risk as of December 31, 2012. The Bank’s assets and liabilities are included in their carrying amounts in million Bangladeshi Taka,
broken down by currency.
(Figure in million)
Group Bank
LIABILITIES
Borrowings from other banks,
financial Institutions and agents 9,376.94 697.45 - - - 10,074.39 430.74 697.45 - - - 1,128.19
Balance with Bangladesh Bank - 170.32 - - - 170.32 - 170.32 - - - 170.32
Deposit 286,226.57 631.78 35.40 44.35 - 286,938.10 286,186.22 631.78 35.40 44.35 - 286,897.75
Bills Payable 4,512.08 195.28 - - - 4,707.36 4,512.08 195.28 - - - 4,707.36
Other liabilities 65,462.32 - - - - 65,462.32 64,124.95 - - - - 64,124.95
Total liabilities 365,577.91 1,694.83 35.40 44.35 - 367,352.50 355,253.99 1,694.83 35.40 44.35 - 357,028.57
Net position 10,359.62 513.13 26.85 81.07 595.90 11,576.57 31,700.59 572.43 27.96 89.82 297.27 32,688.07
Group Bank
SRO-336-AIN/2010 dated 5-10-2010 issued by Ministry of Labor and Employment and published in Bangladesh
gazette on 07-10-2010 declaring the status of business of certain institutions and companies ( like mobile operating
companies, mobile network service providing company , all Govt. and Non-govt. money lending companies etc.)
as Industrial Undertakings” for the purpose of Chapter-XV of the Bangladesh Labor Act,2006 which deals with the
workers participation in company’s profit by the way of Worker’s Participation Fund and Welfare Fund (WPFWP). The
Bangladesh Labor Act,2006 requires the “Industrial Undertakings” to maintain provision for worker’s profit participation
fund @5% on net profit. However, we have obtained legal opinion from Legal advisor in this regard where it has been
started that Agrani Bank Limited does not fall under this category. Therefore, no provision has been made in the
financial statements during the year under audit.
(MD. NAZRUL ISLAM FARAZI) (MOHAMMAD SHAMS-UL ISLAM) (SYED ABDUL HAMID)
General Manager Deputy Managing Director Managing Director & CEO
Detail Information of Advances More than 10% of Bank’s Paid-up Capital ( funded & non-funded)
208
Annexure - B.1
Amount Booked
Particulars No. of Face Value Rate of Cost Value/ Market value on
Quantity Interest Previous Value 31/12/2012 (Tk.) Amortization Rev. Reserve
A/C
Treasury Bills in HFT
Approved:
364 Days 2 329,900,000 11.37-11.40 296,253,297 305,528,172 - 95,872
Sub-Total 329,900,000 296,253,297 305,528,172 95,872
Treasury Bills in (Lien at BB under ALS facilities)
91 Days 4 953,200,000 9.15-9.50 931,512,415 931,512,415 - -
182 Days 2 547,000,000 10.85 518,925,225 518,925,225 - -
364 Days 3 1,039,200,000 11.18-11.20 934,826,573 934,826,573 - -
Sub-Total 2,539,400,000 2,385,264,213 2,385,264,213
Treasury Bills in (Lien at BB in favour of SCB)
182 Days 5 1,014,400,000 11.30-11.42 966,867,263 989,607,815 - 3,788,828
364 Days 15 3,229,200,000 10.75-11.43 2,976,287,167 3,051,810,779 - 1,975,285
Sub-Total 4,243,600,000 3,943,154,430 4,041,418,594 - 5,764,113
Total 7,112,900,000 6,624,671,940 6,732,210,979 5,859,985
Annexure - B.2
Amount Booked
Particulars No. of Face Value Rate of Cost Value/ Market value on
Quantity Interest Previous Value 31/12/2012 (Tk.) Amortization Rev. Reserve
A/C
Treasury Bond in HTM :
Approved:
Govt. Treasury Bond ( 5 years) 19 7,976,000,000 7.80-10.60 7,976,529,944 7,968,893,160 2,924,080 -
Govt. Treasury Bond ( 10 years) 27 9,972,700,000 8.50-12.50 9,756,484,501 9,782,281,267 91,877,597 -
Govt. Treasury Bond ( 15 years) 35 5,315,600,000 8.69-14.00 5,371,555,287 5,418,874,991 426,708 -
Govt. Treasury Bond ( 20 years) 34 4,525,700,000 9.10-13.14 4,556,203,284 4,573,585,083 415,370 -
Total Treasury Bond in HTM 7,790,000,000 27,660,773,016 27,743,634,501 95,643,755 -
Other Bonds in HTM
Approved:
Jute Sector (25 Years) 2 384,835,000 5.00 384,835,000 384,835,000 - -
Treasury Bond (Froozen Food) (03 Years) 1 366,900,000 Interest Free 366,900,000 366,900,000 - -
02 Years Treasury Bond (Agrani Bank - BPC)-2013 1 2,000,000,000 7.00 2,000,000,000 2,000,000,000 - -
03 Years Treasury Bond (Agrani Bank - BPC)-2014 1 2,000,000,000 7.00 2,000,000,000 2,000,000,000 - -
04 Years Treasury Bond (Agrani Bank - BPC)-2015 1 2,000,000,000 7.00 2,000,000,000 2,000,000,000 - -
05 Years Treasury Bond (Agrani Bank - BPC)-2016 1 2,000,000,000 7.00 2,000,000,000 2,000,000,000 - -
05 Years Treasury Bond (Agrani Bank - BPC)-2016 1 2,850,000,000 7.00 2,850,000,000 2,850,000,000 - -
06 Years Treasury Bond (Agrani Bank - BPC)-2017 1 2,850,000,000 7.00 2,850,000,000 2,850,000,000 - -
05 Years Treasury Bond (Agrani Bank-BJMC)-2017 1 1,019,800,000 5.00 1,019,800,000 1,019,800,000 - -
09 Years Treasury Bond (Agrani Bank-BJMC)-2021 1 1,359,700,000 5.00 1,359,700,000 1,359,700,000 - -
11 Years Treasury Bond (Agrani Bank-BJMC)-2023 1 1,699,600,000 5.00 1,699,600,000 1,699,600,000 - -
13 Years Treasury Bond (Agrani Bank-BJMC)-2024 1 2,039,500,000 5.00 2,039,500,000 2,039,500,000 - -
Total Other Bonds in HTM 20,570,335,000 20,570,335,000 20,570,335,000 - -
Treasury Bond in (Lien at BB under OD facilities)
Approved:
Govt. Treasury Bond ( 5 years) 13 3,666,100,000 7.80-10.60 3,640,596,582 3,713,845,490 - -
Total Treasury Bond in HTM 3,666,100,000 3,640,596,582 3,713,845,490 - -
Total Treasury Bond & Other Bonds in HTM (A) 52,026,435,000 51,871,704,598 52,027,814,991 95,643,755 -
Treasury Bond (HFT) :
Approved:
Govt. Treasury Bond ( 5 years) 8 2,559,100,000 10.60-11.55 2,551,589,343 2,554,997,915 - 6,998,172
Govt. Treasury Bond ( 10 years) 15 4,887,900,000 11.25-12.15 4,867,787,389 4,858,329,725 - 5,656,599
Govt. Treasury Bond ( 15 years) 13 2,166,700,000 11.65-12.14 2,174,705,851 2,152,523,198 2,302,619
Govt. Treasury Bond ( 20 years) 9 932,600,000 12.00-12.16 930,388,973 920,405,500 714,919
Total Treasury Bond in HFT (B) 10,546,300,000 10,524,471,556 10,486,256,338 - 15,672,309
Treasury Bond in (Lien at BB under ALS facilities)
Approved:
Govt. Treasury Bond ( 5 years) 4 852,000,000 11.45-11.50 852,435,070 849,570,279 - -
Govt. Treasury Bond ( 10 years) 5 930,700,000 11.75-11.81 930,438,943 930,699,478 - -
Govt. Treasury Bond ( 15 years) 1 58,500,000 12.08 58,580,181 58,500,000 - -
Govt. Treasury Bond ( 20 years) 2 82,900,000 12.18-12.28 82,817,489 82,900,000
Total Treasury Bond in HFT (C) 1,924,100,000 1,924,271,683 1,921,669,757 - -
Un Approved Other Bond :
Prime Bank Limited Subordinated Bond 1 180,000,000 11.50 180,000,000 180,000,000 - -
Orascom Telecom Bond 2 300,000,000 13.50 300,000,000 300,000,000 - -
Mutual Trust Bank Limited Subordinated Bond 1 300,000,000 12.00 300,000,000 300,000,000 - -
National Bank Limited Subordinated Bond 1 200,000,000 11.50 200,000,000 200,000,000 - -
Northern Power Solution Bond 5 500,000,000 18.00 500,000,000 500,000,000 - -
Total Unapproved Other Bond (D) 1,480,000,000 1,480,000,000 1,480,000,000 - -
Total (A+B+C+D) ( Note-6) 65,976,835,000 65,800,447,837 65,915,741,086 95,643,755 15,672,309
Grand Total (Annexure-B.1 & Annexure-B.2) ( Note-6) 73,089,735,000 72,425,119,777 72,647,952,065 95,643,755 21,532,294
Total
210
Annexure-C.1
A. Shares Quoted
Average Market Rate Market Value Unrealised
Total
Particulars/ No. of Par Value cost as at as at Capital Provision Kept
Book Value
Name of Companies Shares per share 31-12-12 31-12-12 Gain/(Loss)
Tk. Tk. Tk. Tk. Tk. Tk. Tk.
Banks
AB Bank Limited 1,981,812 10.00 112.14 222,241,266 33.70 66,787,064 (155,454,202) 155,454,202
Bank Asia Limited 3,076,944 10.00 38.36 118,026,776 21.50 66,154,296 (51,872,480) 51,872,480
City Bank Limited 1,157,000 10.00 65.59 75,889,682 26.80 31,007,600 (44,882,082) 44,882,082
Dhaka Bank Limited 698,575 10.00 37.17 25,964,820 24.80 17,324,660 (8,640,160) 8,640,160
IFIC Bank Limited 8,419,850 10.00 88.58 745,867,796 36.20 304,798,570 (441,069,226) 441,069,226
Mitual Trust Bank Limited 807,000 10.00 65.69 53,014,831 21.90 17,673,300 (35,341,531) 35,341,531
National Bank Limited 8,406,418 10.00 52.03 437,412,757 22.10 185,781,838 (251,630,919) 251,630,919
One Bank Limited 14,134,926 10.00 46.02 650,521,159 22.80 322,276,313 (328,244,846) 328,244,846
Prime Bank Limited 3,308,024 10.00 49.86 164,942,728 37.00 122,396,888 (42,545,840) 42,545,840
Shahjalal Islami Bank Limited 45,687,330 10.00 45.71 2,088,590,535 28.50 1,302,088,905 (786,501,630) 786,501,630
Southeast Bank Limited 13,140,340 10.00 44.00 578,172,161 20.00 262,806,800 (315,365,361) 315,365,361
Standard Bank Limited 1,163,700 10.00 35.63 41,467,819 19.20 22,343,040 (19,124,779) 19,124,779
NBFI
Bay Leasing 266,400 10.00 87.21 23,232,160 35.30 9,403,920 (13,828,240) 13,828,240
DBH 1,252,925 10.00 109.48 137,171,734 56.00 70,163,800 (67,007,934) 67,007,934
IDLC 8,662 10.00 231.91 2,008,830 91.90 796,038 (1,212,792) 1,212,792
PLFSL 100,174 10.00 69.22 6,934,276 32.40 3,245,638 (3,688,638) 3,688,638
ULC 280,740 10.00 77.54 21,769,543 31.20 8,759,088 (13,010,455) 13,010,455
Insurance
National Life Insurance Limited 62,216 10.00 428.86 26,682,143 302.70 18,832,783 (7,849,360) 7,849,360
Pragati Life Insurance Limited 379,181 10.00 142.56 54,056,950 62.40 23,660,894 (30,396,056) 30,396,056
Fuel & Power
DESCO 325,450 10.00 115.30 37,523,174 72.10 23,464,945 (14,058,229) 14,058,229
KPCL 48,150 10.00 107.40 5,171,497 49.80 2,397,870 (2,773,627) 2,773,627
Meghna Petrolium 2,600 10.00 186.32 484,438 158.50 412,100 (72,338) 72,338
Padma Oil 517,421 10.00 405.03 209,571,352 187.50 97,016,438 (112,554,914) 112,554,914
Power Grid Ltd 4,103,440 10.00 94.77 388,881,885 55.60 228,151,264 (160,730,621) 160,730,621
Sumit Power Ltd 6,956,465 10.00 93.59 651,076,555 53.30 370,779,585 (280,296,970) 280,296,970
Titas Gas Ltd 2,784,180 10.00 101.71 283,175,544 65.30 181,806,954 (101,368,590) 101,368,590
Pharmaceutical
Active Fine Chemical 93,500 10.00 75.15 7,026,272 72.70 6,797,450 (228,822) 228,822
Becon Pharma 15,750 10.00 49.52 779,945 16.50 259,875 (520,070) 520,070
Square Pharma 2,000,384 10.00 181.29 362,654,715 168.60 337,264,742 (25,389,973) 25,389,973
Engineering
Atlas Bangla 57,400 10.00 283.95 16,298,815 161.70 9,281,580 (7,017,235) 7,017,235
BSRM 246,000 10.00 199.76 49,140,608 67.90 16,703,400 (32,437,208) 32,437,208
S Alam CRST 863,000 10.00 72.62 62,674,896 49.10 42,373,300 (20,301,596) 20,301,596
Spinning & Textile
Malek Spinning 278,300 10.00 57.25 15,931,680 25.10 6,985,330 (8,946,350) 8,946,350
Metro Spinning 42,780 10.00 66.03 2,824,594 17.10 731,538 (2,093,056) 2,093,056
Square Textile 490,220 10.00 146.41 71,774,350 102.80 50,394,616 (21,379,734) 21,379,734
Miscelleneous
Aramit Cement 87,120 10.00 142.17 12,385,750 63.90 5,566,968 (6,818,782) 6,818,782
RAK Ceramics 20,922 10.00 137.49 2,876,616 56.80 1,188,370 (1,688,246) 1,688,246
DBH 1st Mitual Fund 131,500 10.00 17.50 2,301,289 7.10 933,650 (1,367,639) 1,367,639
Beximco Limited 2,904,035 10.00 167.01 485,007,630 64.40 187,019,854 (297,987,776) 297,987,776
Non-Trading Shares
BD Luggage 600 100.00 8.00 4,800 28.25 16,950 12,150 (12,150)
BCI Limited 1,230 100.00 15.25 18,756 53.00 65,190 46,434 (46,434)
Bangladesh Shipping 1,077 100.00 1,714.25 1,846,247 273.50 294,559 (1,551,688) 1,551,688
Bengal Biscuits Limited 420 100.00 33.00 13,860 90.00 37,800 23,940 (23,940)
Brac Bank SC Bond 750,000 1,000.00 1,000.00 750,000,000 1,085.00 813,750,000 63,750,000 -
Dacca Dying & Man. Limited 81,281 10.00 6.14 498,750 31.30 2,544,095 2,045,345 (2,045,345)
Green Delta M F 500,000 10.00 10.00 5,000,000 6.90 3,450,000 (1,550,000) 1,550,000
ICB (HTM) 1,054,687 100.00 47.76 50,375,015 59.70 50,375,015 - -
ICB (HFT) 1,063,040 100.00 47.76 50,773,955 1,508.25 1,603,330,080 1,552,556,125 (1,552,556,125)
Padma Printers & Colours 28,484 10.00 3.40 96,846 5.00 142,420 45,574 (45,574)
Phoenix Leather Company 599 100.00 100.00 59,900 361.50 216,538 156,638 (156,638)
LR Global BD M F 5,000,000 10.00 10.00 50,000,000 10.00 50,000,000 - -
Popular Life 1st M F 500,000 10.00 10.00 5,000,000 7.20 3,600,000 (1,400,000) 1,400,000
Total Quoted Shares (A) 135,282,252 9,055,217,697 6,953,653,911 (2,101,563,786) 2,165,313,786
*As per Investment Corporation of Bangladesh Ordinance 1976 the Bank’s shareholding in Investment Corporation of Bangladesh (ICB) will be at
least 2.5% of the total paid up share capital of ICB. The Investment Corporation of Bangladesh (General) Regulations 1977 puts some restrictions on
the sale of any ICB shares held by the Bank, with the prior consent of the Government. Since we are optimistic that Government will give the Bank
consent to sell its ICB shareholding exceeding 2.5%, should be situation arise, we have considered these excess shares as HFT shares.
Summary
A. Buy Back Shares
Average Market Market Value
Par Total
No. of cost Rate as at as at
Name of Companies Value Book Value
Shares per share 31-12-2012 31-12-2012
Tk. Tk. Tk. Tk. Tk.
Beximco Ltd 5,200,000 10 207.69 1,080,000,000 64.40 334,880,000
GMG Airlines Ltd 19,875,981 10 33.71 670,000,000 25.53 507,433,795
Unique Hotel & Resorts Ltd 6,250,000 10 200.00 1,250,000,000 126.20 788,750,000
Sub Total 31,325,981 3,000,000,000 1,631,063,795
212
Annexure - D
Debenture:
Debenture (Unapproved)
Total (Unapproved) 11
Debenture (Approved)
Conversion
Amount Amount Weighted Amount
Currency rate
Name of the Bank in in Average in
Name per unit
FC USD Rate BDT
FC
Nostro Account Debit
Sonali Bank UK London EURO 32,810.70 1.322 43,379.03 79.825 3,462,731
Sonali Bank UK London USD 1,083,587.33 1.000 1,083,587.33 79.825 86,497,359
Sonali Bank UK London GBP 78,506.78 1.617 126,969.02 79.825 10,135,302
Sub Total 1,253,935.38 100,095,392
Bank of Ceylon, Colombo ACUD 20,167.67 1.000 20,167.67 79.825 1,609,884
Bank of Ceylon, Maldives ACUD 5,000.00 1.000 5,000.00 79.825 399,125
Citi Bank NA Mumbai ACUD 453,189.96 1.000 453,189.96 79.825 36,175,889
HSBC Ltd. India ACUD 66,946.30 1.000 66,946.30 79.825 5,343,988
ICICI India ACUD 42,913.65 1.000 42,913.65 79.825 3,425,582
SCB Nepal ACUD 23,318.88 1.000 23,318.88 79.825 1,861,430
AB Bank Limited, India ACUD 114,830.50 1.000 114,830.50 79.825 9,166,345
SCB Mumbai, India ACUEUR 77,706.56 1.322 102,735.84 79.825 8,200,888
City Bank NA, Australia AUD 34,686.23 1.038 35,993.90 79.825 2,873,213
Habib Bank, Zurich CHF 75,555.79 0.914 82,683.07 79.825 6,600,176
Union Bank of Swiss, AG Zurich CHF 28,266.07 0.914 30,932.45 79.825 2,469,183
Royal bank of Canada, Toronto CAD 97,185.77 0.997 97,527.11 79.825 7,785,102
BCCI London GBP 25,275.46 1.617 40,878.00 79.825 3,263,086
SCB London GBP 32,940.58 1.617 53,274.80 79.825 4,252,661
HSBC Bank, London GBP 144,143.94 1.617 233,123.99 79.825 18,609,123
The Bank of Tokyo-Mitshubishi UFJ ltd JPY 35,535,679.04 86.020 413,109.50 79.825 32,976,466
SCB Tokyo JPY 2,898,515.00 86.020 33,695.83 79.825 2,689,770
Al-Rajhi Banking SAR 11,128.73 3.750 2,967.34 79.825 236,868
Svenska Handles Banken SEK 436,407.25 6.521 66,922.34 79.825 5,342,076
SCB Singapore SGD 12,507.01 1.224 10,218.15 79.825 815,664
United Overseas Bank, Singapore SGD 47,481.58 1.224 38,792.14 79.825 3,096,583
Development Bank of Singapore SGD 871,090.75 1.224 711,675.45 79.825 56,809,493
Bank of Tokyo, Japan USD 274,130.57 1.000 274,130.57 79.825 21,882,473
City Bank N.A. NY USD 24,788,189.20 1.000 24,788,189.20 79.825 1,978,717,203
Kookmin Bank, Seol USD 114,222.85 1.000 114,222.85 79.825 9,117,839
Public Bank Berhad, Kualalampur USD 135,723.65 1.000 135,723.65 79.825 10,834,140
BCCI London USD 175,942.98 1.000 175,942.98 79.825 14,044,645
ICICI Bank Hongkong USD 172,022.68 1.000 172,022.68 79.825 13,731,710
Commerz Bank AG, Frankfrut EURO 161,094.66 1.322 212,983.25 79.825 17,001,388
SCB, Frankfrut EURO 136,910.21 1.322 181,008.99 79.825 14,449,043
Citi Bank NA London EURO 135,921.02 1.322 179,701.18 79.825 14,344,647
Unicredito Italiano SPA, Milan EURO 14,626.93 1.322 19,338.26 79.825 1,543,677
Sub Total 28,934,160.48 2,309,669,360
Total Debit Balance 30,188,095.86 2,409,764,752
Nostro Account Credit
Sonali Bank Kolkata ACUD 65,399.05 1.000 65,399.05 79.825 5,220,479
SCB, India ACUD 208,613.78 1.000 208,613.78 79.825 16,652,595
Metropolitan Bank, India ACUD 100,063.07 1.000 100,063.07 79.825 7,987,535
HSBC NY USD 606,551.11 1.000 606,551.11 79.825 48,417,942
J P Morgan Chase USD 2,370,718.06 1.000 2,370,718.06 79.825 189,242,569
SCB, NY USD 2,609,264.69 1.000 2,609,264.69 79.825 208,284,554
Mashreque Bank NY USD 262,161.14 1.000 262,161.14 79.825 20,927,013
Wachovia Bank PSC NY USD 2,514,523.00 1.000 2,514,523.00 79.825 200,721,798
Sub Total 8,737,293.90 697,454,485
Total Credit Balance 8,737,293.90 697,454,485
214
Annexure-F
(Amount in Tk.)
Excess/(short) Payment of
Assessment Tax Provision Assessed Tax
Income Year Assessment status Provision after Advance Tax
Year as per account liabilities
Tax Assessed (TDS)
1 2 3 4 5 6=(3-5) 7
Refundable from Govt. for finalized assessments up to 2004 (except 2002) 3,101,735,796
2006 2007-08 930,815,389 High Court Ref. Pending 1,550,205,298 (619,389,909) 239,419,933
Current tax has been calculated considering amortization valuation adjustment as admissible expenses from income year
2008.
Land Furniture
Motor Office Electric Others
& & Computers Total
Particulars Vehicles Equipment Materials
Building Fixture
Balance at January 01, 2012 10,400,016,812 506,306,664 299,013,822 153,879,753 244,940,644 889,456,139 9,011,728 12,502,625,562
Addition during the year 93,386,166 111,553,123 625,483 28,245,619 81,699,414 126,536,552 3,503,346 445,549,703
Disposal/Transfer during the year (33,101,536) (5,122,853) 1,693,249 502,014 (847,407) (3,356,495) 1,285,003 (38,948,025)
December 31, 2012 10,460,301,442 612,736,934 301,332,554 182,627,386 325,792,651 1,012,636,196 13,800,077 12,909,227,240
Balance at January 01, 2012 112,356,725 269,084,895 215,626,645 107,616,101 157,390,797 399,077,488 6,136,927 1,267,289,578
Charge for the year 14,851,812 36,077,663 27,469,584 14,766,459 32,336,102 137,028,498 182,193 262,712,311
Adjustment for disposal/transfer (16,107,995) (5,122,853) 1,693,249 502,014 (847,407) (3,356,495) 1,285,003 (21,954,484)
December 31, 2012 111,100,542 300,039,705 244,789,478 122,884,574 188,879,492 532,749,491 7,604,123 1,508,047,405
December 31, 2012 10,349,200,900 312,697,229 56,543,076 59,742,812 136,913,159 479,886,705 6,195,954 11,401,179,835
December 31, 2011 10,287,660,087 237,221,769 83,387,177 46,263,652 87,549,847 490,378,651 2,874,801 11,235,335,985
Annexure-G1
Land Furniture
Motor Office Electric Others
& & Computers Total
Particulars Vehicles Equipment Materials
Building Fixture
Tk. Tk. Tk. Tk. Tk. Tk. Tk. Tk.
Cost
Balance at January 01, 2012 10,400,016,812 500,337,772 299,013,769 144,323,949 244,661,906 887,909,219 2,844,652 12,479,108,079
Addition during the year 93,386,166 105,879,157 - 25,532,206 81,743,255 125,869,564 1,372,983 433,783,331
Revaluation during the year - - - - - - - -
Disposal/Transfer during the year (33,101,536) (6,647,465) 1,474,200 (1,626,452) (786,861) (3,557,511) 22,419 (44,223,206)
December 31, 2012 10,460,301,442 599,569,464 300,487,969 168,229,703 325,618,300 1,010,221,272 4,240,054 12,868,668,204
218
Classification of financial instruments as per Bangladesh Financial Reporting Standard (BFRS-7)- Consolidated
(Tk. in million)
Financial
liabilities Financial liabilities
Loans & Non-financial Non-finacial
Held to maturity Held to trading Available for sale at fair value measure at
Receivable asset liabilities
Items 15 months profit amortised cost
or loss
Carrying Fair Carrying Fair Carrying Fair Carrying Fair Carrying Fair Carrying Fair Carrying Fair Carrying Fair
Amount Value Amount Value Amount Value Amount Value Amount Value Amount Value Amount Value Amount Value
Cash 3,635 3,635 - - - - - - - - - - - - - -
Balance with Bangladesh
Bank and agent Bank 17,048 17,048 - - - - - - - - - - - - - -
Balance with other bank and
financial institution 5,294 5,294 - - - - - - - - - - - - - -
Investments 7,432 7,432 51,872 52,028 19,073 19,140 6,954 9,055 - - - - - - - -
Loans and advance 212,663 212,663 - - - - - - - - - - - - - -
Fixed assets - - - - - - - - 5,457 11,273 - - - - - -
Other assets 24,787 24,787 19,789 19,789 - - - - - -
Borrowing from other banks,
Financial institution and
agents - - - - - - - - - - - - 10,074 10,074 - -
Deposit and other accounts - - - - - - - - - - - - 292,429 292,429 - -
Other liabilities - - - - - - - - - - - - 2,266 2,266 61,859 61,859
Total 270,859 270,859 51,872 52,028 19,073 19,140 6,954 9,055 25,246 31,062 - - 304,769 304,769 61,859 61,859
220
Group Bank
a) Average Cost of Deposits Interest paid on Deposits 1,517.10 682.44 1,517.10 1,021.19
= x 100 = 5.76% x 100 = 3.68% x 100 = 5.76% x 100 = 4.46%
Average Deposit 26,352.38 18,547.81 26,352.38 22,901.27
b) Average Cost of Borrowing Interest paid in Borrowings 188.40 10.20 188.40 10.20
= x 100 = 9.52% x 100 = 3.48% x 100 = 8.82% x 100 = 3.48%
Average Borrowings 1,978.92 293.52 2,135.27 293.52
c) Average Cost of Agrani Bank Interest paid on ASUB 0.04 5.07 0.04 5.07
Shilpa Unnayan Bond = x 100 = 10.81% x 100 = 15.58% x 100 = 10.81% x 100 = 15.58%
ASUB 0.37 32.54 0.37 32.54
d) Average Yield on Loans & Interest on Loans 2,320.62 1,286.56 2,302.29 1,286.56
Advances (performing loan) = x 100 = 13.86% x 100 = 11.19% x 100 = 13.86% x 100 = 11.19%
Performing Loans 16,737.59 11,502.34 16,611.81 11,502.34
e) Average Yield on Investments Income from Investment 814.30 531.25 804.41 647.80
= x 100 = 9.52% x 100 = 13.69% x 100 = 9.41% x 100 = 16.70%
Average Investment 8,552.14 3,880.06 8,552.14 3,880.06
f) Average Yield on Call loans Income from Call Loans 2.96 7.03 2.96 7.03
to Bank = x 100 = 3.57% x 100 = 3.55% x 100 = 3.57% x 100 = 3.55%
Average Money At Call 82.87 197.75 82.87 197.75
g) Average Yield on Balance with Interest from Balance with other Bank 32.22 54.48 32.22 54.48
other Banks = x 100 = 23.08% x 100 = 12.36% x 100 = 14.35% x 100 = 12.36%
Average Balance with other Banks 139.63 440.85 224.60 440.85
Group Bank
SL No Particulars
2012 2011 2012 2011
8 Total classified loan to total loans (%) 25.49% 11.09% 25.30% 11.07%
12 Provision surplus/(deficit) - - - -
23 Credit Rating
As Govt. Entity
Long Term A+ A+
222
Annexure-J.1
224
Annexure-J.3
(Amount in Taka)
2012 2011
Operating Income:
Investment Income 59,182,916 36,756,131
Profit paid on deposits (43,564,201) (26,243,009)
Net Investment Income 15,618,716 10,513,122
Income from investment in shares/securities - -
Commission, exchange and brokerage 1,195,213 1,977,570
Other operating income 810,254 2,750,481
Total operating income (A) 17,624,183 15,241,173
Operating Expenses:
Salaries and allowances 9,091,779 8,933,456
Rent, taxes, insurance, electricity, ect. 8,190 -
Other fees and taxes 1,301
Legal Expenses 12,000 -
Postage, stamp, telecommunication etc. 10,122 -
Stationery, printing, advertisements. Etc. 124,467 189,965
Chief Ececutive’s slalary & fees - -
Directors’ fees & expenses - -
Shariah supervisory committees’s fees & expenses - -
Auditors’ fees - -
Charges on investment losses - -
Depreciation and repair of Bank’s assets 279,891 262,636
Repairs to the Bank’s assets 108,598
Zakat expenses - -
Other expenses 469,148 584,283
Total operating expenses(B) 10,105,496 9,970,340
Profit/(loss) before provision (C=A-B) 7,518,687 5,270,833
Financial Statements of
4 Subsidiary Companies of
226
INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS OF
AGRANI EQUITY & INVESTMENT LIMITED
We have audited the accompanying financial statements of the Agrani Equity & Investment Limited, which comprise the
statement of financial position as at 31 December 2012 and the related statement of comprehensive income, statement
of change in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies
and other explanatory information.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with Bangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of the
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity’s preparation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion:
In our opinion, the financial statements presents fairly, in all materials respects, the financial position of Agrani Equity &
Investment Limited as at 31 December 2012 and its financial performance and its cash flows for the year then ended
in accordance with Bangladesh Financial Reporting Standards (BFRS) and comply with the applicable sections of the
Companies Act 1994 and other applicable laws and regulations.
a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit and made due verification thereof;
b) in our opinion, proper books of account as required by law have been kept by the company so far as it appeared from
our examination of those books;
c) the company’s statement of financial position and statement of comprehensive income dealt with by the report are
in agreement with the books of account and returns; and
d) the expenditure incurred was for the purposes of the company’s business.
APPLICATION OF FUND
Non-Current Assets:
Property, plant and equipments 4 7,487,687 2,417,506
Intangible assets 5 770,499 940,387
Current Liabilities:
Accounts payable 14 1,696,025 1,627,255
Advance and security deposits 1,767,166 2,816,723
OD Account with Agrani Bank Limited 2,458,506,286 1,021,818,305
Other liabilities 15 1,138,791,397 1,057,106,931
Total current liabilities: 3,600,760,874 2,083,369,214
These Financial Statements should be read in conjunction with the annexed notes.
228
AGRANI EQUITY & INVESTMENT LIMITED
Statement of Comprehensive Income
For the year ended 31 December 2012
(Amount in Taka)
Particulars Notes 2012 2011
Income
Expenditure
These Financial Statements should be read in conjunction with the annexed notes.
Share Capital - -
Retained earnings - -
Net cash provided by/(used in) Financing activities - -
These Financial Statements should be read in conjunction with the annexed notes.
230
AGRANI EQUITY & INVESTMENT LIMITED
Statement of Changes in Equity
For the year ended 31 December 2012
Retained
Particulars Share Capital Total Equity
Earnings
Agrani Bank Limited (Merchant Banking Unit) also registered as a Public limited company namely Agrani Equity &
Investment Limited (“the Company’’) registered under the Companies Act 1994. The Company was incorporated
in Bangladesh on 16 March 2010. The address of the company’s registered office is 9/D Dilkusha C/A, Motijheel,
Dhaka-1000, Bangladesh.
2. Basis of preparation
3.1 Basis of preparation and presentation of the financial statements and responsibility thereon
The financial statements have been prepared based on historical cost convention on generally accepted
accounting principles (GAAP). The Financial Statements are presented in Bangladeshi Taka (BDT) where
appropriate the significant accounting policies disclosed in the succeeding notes.
The Board of Directors takes are responsible for the preparation and presentation of these financial statements.
232
3.2 Fixed assets and depreciation
(a) Fixed assets have been shown at cost less accumulated depreciation.
(b) Depreciation is charged on straight-line method on all fixed assets at the following rates per annum.
(c) Depreciation begins when the asset is available for use and continues until the asset is derecognized.
Depreciation is charged to amortise the cost of assets over their estimated useful lives, using Straight-line
method in accordance with BAS-16 “Property, Plant & Equipment”.
(d) Upon retirement of items of fixed assets the cost and accumulated depreciation are eliminated from the
accounts and the resulting gains or losses, if any, are transferred to profit & loss account.
(e) Repairs and maintenance costs of fixed assets are treated as revenue expenditure and charged to profit
& loss account when incurred.
3.3 Investments
Value of investments has been enumerated as follows:
The accounting policies adopted for the recognition of revenue as prescribed by BAS 18- are as follows:
(a) Settlement fee is recognized at the time of buying & selling of shares of investors/clients on purchase
price and sells price @ 0.15 paisa per hundred Taka.
(c) Portfolio management fee is calculated on daily product basis on client’s per day’s average balance of
portfolio in a year @ 1% but charged on quarterly basis.
(d) Interest is calculated on daily product basis on client’s per day’s average balance of portfolio loan in a year
@ 13% & 15% (Existing and new client respectively) but charged on quarterly basis.
(f) Sale of application form recognized at the time of selling of account opening form.
(g) Interest on over draft account is calculated on daily product basis on per day’s average balance of over
draft account in a year @ 8.5% but charged on quarterly basis.
Deferred tax is recorded under liability method as required by the BAS 12: Income Taxes for all the temporary
timing differences arising between the tax base of assets and liabilities and their carrying value for financial
reporting purposes.
As per BAS 24: Related Party Disclosure, parties are considered to be related if one has the ability to control or
exercise significant influence over other in making financial and operating decisions.
234
AGRANI EQUITY & INVESTMENT LIMITED
Notes to the Financial Statements
For the year ended 31 December 2012
Amount in Taka
31.12.2012 31.12.2011
4. Property, plant and equipments
This represents the cost value of property, plant and equipments as on 31.12.2012. Movement of the balance is as
under:
Accumulated Depreciation:
5. Software
This represents the cost value of Intangible Assets (Application Software) as on 31.12.2012. Movement of the balance
is as under:
7 Accounts receivable
9 Other assets
Cash in hand - -
Cash at Bank (Agrani Bank Ltd.):
STD A/c-314-1 348,006 1,183,900
STD A/c-308-0 6,747,904 75,876
CD A/c-14922-5 169,164 85,140
STD A/c-36000238 1,673,237 -
STD A/c-295-0 820,063 -
Total: 9,758,374 1,344,916
12 Share capital
a) Authorized capital:
50,000,000 ordinary shares of Tk 100 each 5,000,000,000 5,000,000,000
13 Retained earnings
14 Accounts Payable
236
Amount in Taka
31.12.2012 31.12.2011
15 Other Liabilities
CDBL custodian charge 12,000 6,500
Provision for CDBL transaction charges 8,835,094 12,773,873
Provision for Salary & Allowances 6,734,379 -
Provision for margin loan 94,961,504 20,951,556
Provision for unrealized loss in securities 1,014,138,679 1,014,138,679
Provision for tax on dividend 6,749,695 2,791,549
Provision for tax on capital gain 5,120,502 5,312,343
Provision for tax on operating Profit 8,636 8,636
Deferred tax 939,795 480,873
Provision for other expenses 634,576 64,000
Tax Payable (Source Tax on Rent) 12,040 -
Tax payable (Advertisement) - 2,960
VAT payable 47,128 4,745
Sundry deposit 378,276 352,125
Miscellaneous 219,093 219,093
Total: 1,138,791,397 1,057,106,931
19 Administrative expenses
Closing Allowance 21,000 19,500
Printing & stationery 117,442 73,271
Paper and table stationery 7,396 7,546
Advertisement 5,000 36,997
Newspaper & periodicals 39,328 31,918
Entertainment 78,000 46,500
Stamps 3,570 171
Salaries (Officers) 3,156,230 2,840,400
Salaries (Staff) 173,985 167,325
Children education allowances 9,600 6,900
Bonus (Officers & Staff) 547,740 574,970
Bank contribution to provident fund 69,567 45,821
Bank contribution to employees pension fund 791,102 739,664
Bank contribution to employees gratuity fund 97,982 80,429
Conveyance allowances (Staff) 3,600 3,600
Personal pay 2,460 2,460
Washing charges 1,800 1,800
Medical allowances 128,100 123,200
Overtime expenses 22,277 39,913
Legal expenses 410 -
Lunch subsidy 528,150 501,150
House rent allowances (Officers) 1,646,346 1,489,933
20 Financial expenses
21 Operating expenses
238
Amount in Taka
31.12.2012 31.12.2011
23 Provision for unrealized loss on security
Opening balance 1,014,138,679 103,372,101
Add: Provision made during the year - 910,766,578
Total: 1,014,138,679 1,014,138,679
Required provision is calculated @ 20% based on SEC circular ref- FxAKx/oNUkJ©/2011/662 dated 29/01/2013.
Annexure-A
Office Equipments 1,121,872 1,635,913 - 2,757,785 20% 297,211 379,732 - 676,943 2,080,842
Furniture & Fixtures 1,615,880 4,288,274 - 5,904,154 10% 23,035 474,274 - 497,309 5,406,845
Intangible Assets 1,348,893 100,000 - 1,448,893 20% 408,506 269,888 - 678,394 770,499
We have audited the accompanying financial statements of Agrani SME Financing Company Limited which comprise
the balanced sheet as at ended 31 December, 2012 and the profit and loss account, statement of changes in equity
and statement of cash flows for the year ended and a summary significant of accounting policies and other explanatory
information, disclosed in notes 1-20 to the Financial Statements.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with Bangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on our judgment, including the assessment of the risks of material
misstatements of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that our audit provides a reasonable basis of modified audit opinion.
Revenue Recognition
“The areas specially in case of interest on loans and advances, all the employees related with the credit of the company
are habituated to accounting the interest income on realization basis as the practice of last 15 years inherited from
the SEDP project. Though the operations of the project have been taken over through the vendor’s agreement on 27th
October 2011, but practically complete operational guideline in line with non-banking financial institution is yet to be
developed. So, without complete operational guideline and necessary training thereon it appears that a lot of mistakes
may take place due to change in accounting policy and economic benefit may not be accurately determined until interest
on loans and advances is received. Considering the circumstance as mentioned above revenue has been recognized
only when the interest on loan has been received by the company.”
Modified Opinion
In our opinion, except for the effect of the matter described above the financial statements, prepared in accordance
with Bangladesh Financial Reporting Standards (BFRS) and Bangladesh Accounting Standards (BAS) adopted by the
Institute of Chartered Accountants of Bangladesh (ICAB), give a true and fair view of the state of the Company’s affairs
as of 31 December, 2012 and of the results of its operations and its cash flows for the period from 1st January, 2012 to 31
December, 2012 and comply with the applicable sections of the Companies Act 1994, the Financial Institution Act 1993,
the rules and regulations issued by Bangladesh Bank, and other applicable laws and regulations.
242
Emphasis of Matters
(Note 7.4) Payable to Agrani Bank Limited Tk. 55,672,663
This represents payable to Agrani Bank Limited on account of final settlement of outstanding loan and advance and
interest thereon as on the dates of closing of loan giving activities jointly with the company by the Agrani Bank Limited.
The amount has been taken as determined by the Agrani Bank Limited. Item wise detailed calculation and reconciliation
of the balance is yet to be completed.
____________________ _________________________
(Hussain Farhad & Co.) (Masih Muhith Haque & Co.)
Chartered Accountants Chartered Accountants
Indemnity Bond - -
Other commitments
Undisbursed contracted loans - -
Total Off-Balance Sheet Items - -
These financial statements should be read with the annexed notes.
_______________________ __________________________
(Hussain Farhad & Co. ) (Masih Muhith Haque & Co. )
Chartered Accountants Chartered Accountants
244
The Agrani SME Financing Company Limited
Profit and Loss Account
For the year ended 31st December, 2012
(Amount in Taka)
For the year ended For the period ended
Notes on 31 December on 31 December
2012 2011
Operating income
Interest income 11 89,989,059 -
Interest paid on deposits, borrowings etc. - -
Operating expenses
Salaries and allowances 13 29,550,444 118,694
Rent, taxes, insurance, electricity etc. 14 2,758,404 797,085
Postage, stamp, telecommunication etc. 15 166,606 -
Legal Expenses 5,480 -
Stationery, printing, advertisement etc. 16 1,169,990 4,320
Chief Executive officer’s salaries and allowances 17 120,000 360,000
Directors’ fees 18 395,000 -
Auditors’ fees 120,000 80,000
Depreciation of bank’s assets 498,104 92,822
Other expenses 19 5,715,870 372,216
Total operating expenses (B) 40,499,898 1,825,137
_______________________ ________________________
(Hussain Farhad & Co. ) (Masih Muhith Haque & Co. )
Chartered Accountants Chartered Accountants
_______________________ __________________________
(Hussain Farhad & Co. ) (Masih Muhith Haque & Co. )
Chartered Accountants Chartered Accountants
246
The Agrani SME Financing Company Limited
Statement of Changes in Equity
For the year ended 31st December, 2012
(Amount in Taka)
Revaluation
Reserve on Statutory Retained
Particulars Paid up Capital General Reserve Total
Government Reserve Earnings
Securities
Opening Balance as at 1st January 2012 500,000,000 - - 454,731,264 (1,606,899) 953,124,365
Prior Years Adjustment (Note: 20) - - - - (1,012,729) (1,012,729)
Adjustment of Advance Tax - - - - - -
Restated balance 500,000,000 - - 454,731,264 (2,619,628) 952,111,636
General reserve - -
Surplus/deficit on account of revaluation of properties - - - - - -
Bonus share issue 400,000,000 - - (400,000,000) - -
Issue Right Share 100,000,000 - - - - 100,000,000
Net profit for the year ended 31st December 2012 - - - - 28,545,990 28,545,990
Statutory Reserve - - 5,709,198 - (5,709,198) -
Total Balance as at 31st December, 2012 1,000,000,000 - 5,709,198 54,731,264 20,217,164 1,080,657,626
________________________ __________________________
247
248
The Agrani SME Financing Company Limited
Liquidity Statement
As at 31st December, 2012
(Amount in Taka)
Assets
Liabilities
Borrowing from other banks and financial institutions - - - - - -
Deposits and other accounts - - - - - -
Provision and other liabilities - 5,755,416 21,114,680 55,672,663 77,290,998 159,833,757
Total liabilities - 5,755,416 21,114,680 55,672,663 77,290,998 159,833,757
Net Liquidity Gap 317,328,618 503,126,575 131,266,699 202,821,944 (73,865,281) 1,080,678,555
The Agrani SME Financing Company Limited
Notes to the Financial Statements
As at December 31, 2012
1 BACKGROUND INFORMATION
2.03 Disclosure of deviations from few requirements of BAS/BFRS due to mandatory compliance of Bangladesh
Bank’s requirements
Bangladesh Bank (the local Central Bank) is the prime regulatory body for Non-Banking Financial Institutions (NBFI)
in Bangladesh. The Company has departed from those contradictory requirements of BAS/BFRS in order to comply
with the rules and regulations of Bangladesh Bank.
Bangladesh Bank has issued template for financial statements which will strictly be followed by all banks and NBFIs.
The templates of financial statements issued by Bangladesh Bank do not include ‘Other Comprehensive Income
(OCI)’ nor are the elements of Other Comprehensive Income allowed to be included in the Single Comprehensive
Income (OCI) Statement. As such the company does not prepare the other comprehensive income statement.
However, the company does not have any elements of OCI to be presented.
iii) Depreciation
Depreciation is charged to amortize the cost of assets, over their estimated useful lives, using the straight-line
method in accordance with BAS-16 “Property, Plant and Equipment”. Full depreciation is charged on addition
irrespective of date when the related assets are put into use and no depreciation is charged from the month of
disposal. Asset category wise depreciation rates are as follows:
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sale
proceeds and the carrying amount of the asset and is recognized in the profit and loss account.
Depreciation methods, useful lives and residual values, if any are reviewed at the balance sheet date.
250
2.11 Revenue recognition
The areas specially in case of interest on loans and advances, all the employees related with the credit of the
company are habituated to accounting the interest income on realization basis as the practice of last 15 years
inherited from the SEDP project. Though the operations of the project have been taken over through the vendor’s
agreement on 27th October 2011, but practically complete operational guideline in line with non-banking financial
institution is yet to be developed. So, without complete operational guideline and necessary training thereon it
appears that lot of mistakes may take place due to change in accounting policy and economic benefit may not be
accurately determined until interest on loans and advances is received. Considering the circumstance as mentioned
above, revenue has been recognized only when the interest on loan has been received by the company.
Other revenues:
Other charges on services rendered by the company are recognized as and when services are rendered.
2.16 Taxation
i) Deferred tax
Tax assessment of the company has not yet been completed. Therefore scope of determining deferred tax has not
been created. After completion of first tax assessment of the company, deferred tax liability / asset will be calculated
and accounted for accordingly.
SL Name Designation
1 Mrs. Khondker Sabera Islam Chairman
2 Mr. Obayed Ullah Al-Masud Member
3 Mr. A. K. M. Abdur Rafique Member
4 Mr. Haradhan Chandra Das Member
5 Mr. A. K. M. Mujibur Rahman Member
2.25 Status of compliance of Bangladesh Accounting Standards and Bangladesh Financial Reporting Standards
In preparing the Financial Statements, Agrani SME Financing Company Limited applied following BAS and BFRS:
Name of the BAS BAS No. Status
Presentation of Financial Statements 1 *
Inventories 2 N/A
Cash Flow Statements 7 Applied
Accounting Policies, Changes in Accounting Estimates and Errors 8 Applied
Events after the Balance Sheet Date 10 Applied
Construction Contracts 11 N/A
Income Taxes 12 Applied
Property, Plant and Equipment 16 Applied
Leases 17 N/A
Revenue 18 Applied
Employee Benefits 19 Applied
Accounting for Government Grants and Disclosure of Government Assistance 20 N/A
The Effects of Changes in Foreign Exchange Rates 21 N/A
Borrowing Costs 23 N/A
Related Party Disclosures 24 Applied
Accounting and Reporting by Retirement Benefit Plans 26 N/A
Consolidated and Separate Financial Statements 27 N/A
Investment in Associates 28 N/A
Interests in Joint Ventures 31 N/A
Financial Instruments: Disclosure and Presentation 32 *
Earnings per share 33 Applied
Interim Financial Reporting 34 Applied
Impairment of Assets 36 Applied
Provisions, Contingent Liabilities and Contingent Assets 37 Applied
Intangible Assets 38 Applied
Financial Instruments: Recognition and Measurement 39 *
Investment Property 40 N/A
Agriculture 41 N/A
252
Name of the BFRS BFRS No. Status
Share Base payment 2 N/A
Business combination 3 N/A
Insurance Contracts 4 N/A
Non-current assets held for sale and discontinued operation 5 N/A
Exploration for and Evaluation of Mineral Resources 6 N/A
Financial Instruments: Disclosures 7 *
Operating Segments 8 N/A
*As the regulatory requirements differ with the standards, relevant disclosures are made in accordance with
Bangladesh Bank’s requirements (please see note 2.03).
N/A= Not applicable.
2.26 BASEL II & Its implementation
To cope with the international best practices and to make the capital more risks sensitive as well as more shock
resilient, guidelines on ‘Basel Accord for Financial Institutions (BAFI)’ have been introduced from January 01, 2011
on test basis by the Bangladesh Bank. At the end of test run period, Basel Accord regime has started and the
guidelines namely “Prudential Guidelines on Capital Adequacy and Market Discipline for Financial Institutions
(CDMD)” have come fully in force from January 01, 2012 with its subsequent supplements/revisions. Instructions
regarding Minimum Capital Requirement (MCR), Adequate Capital, and Disclosure requirement as stated in these
guidelines have to be followed by all FIs for the purpose of statutory compliance. As per CDMD guidelines Financial
Institutions should maintain a Capital Adequacy Ratio (CAR) of minimum 10%. In line with CDMD guideline’s
requirement, Agrani SME Financing Company Limited is aware to ensure timely implementation of BASEL II accord.
2.27 Financial risk management
Agrani SME Financing Company Limited always concentrates on delivering high value to its stakeholders through
appropriate tradeoff between risk and return. A well structured and proactive risk management system is in place
within the Company to address risk relating to credit, market, liquidity and operations. In addition to the industry
best practices for assessing, identifying and measuring risks, the Company is also committed to follow the guidelines
for managing core risk of financial instructions issued by the Country’s Central Bank, Bangladesh Bank, vide FID
Circular No. 10 dated September 18, 2005 for management of risk.
Credit risk
To encounter and mitigate credit risk the company employed multilayer approval process, policy for customers
maximum asset exposure limit, mandatory search for credit report from Credit Information Bureau, looking into
payment performance of customer before financing, annual review of clients, vigorous monitoring and follow up,
taking collateral, seeking external legal opinion, maintaining neutrality in politics and following arm’s length approach
in related party transactions, regular review of market situation and industry exposure etc.
Market risk
The Company regularly meets to assess the changes in interest rate, market conditions, carry out asset liability
maturity gap analysis, re-pricing of products and thereby takes effective measures to monitor and control interest
rate risk, The Company has also strong access to money market and credit lines at a competitive rate through good
reputation, strong earnings and financial strength.
Liquidity Risk
Liquidity requirements are managed on a day-to-day basis by the Company which is responsible for ensuring that
sufficient funds are available to meet short term obligations, even in a crisis scenario, and to maintain a diversity
of funding sources. The Company maintains liquidity based on historical requirements, anticipated funding
requirements from operation, current liquidity position, collections from financing, available sources of funds and
risks and returns.
Operational Risk
Appropriate internal control measures are in place, at Agrani SME Financing Company Limited, to address
operational risks. Agrani SME Financing Company Limited is planning to establish an internal control & compliance
department (ICCD) to address operational risk and to frame and implement policies to encounter such risks. Though
at present the company does not have any internal control and compliance department but experienced people are
engaged to assess operational risk across the Company as a whole and ensures that an appropriate framework
exists to identify, access and manage operational risk.
2.28 Expenses
In terms of the provision of the Bangladesh Accounting Standard (BAS-1) Presentation of Financial Statements, all
expenses are recognized on accrual basis.
2.30 Name of the Directors and their interest in different entities (31-12-2012)
A.K.M. Mujibur Rahman Managing Director Agrani Bank Limited Deputy Managing
and Chief Executive Director
Officer
Comparative information have been disclosed in respect of period from 27th October 2011 to 31st December, 2011
for all numerical information in the financial statements and also the narratives and descriptive information when it is
relevant for understanding of the current month’s financial statements.
254
(Amount in Taka)
Note 2012 2011
3.2 Cash Reserve Requirment (CRR) and Statutory Liquidity Reserve (SLR)
Cash Reserve Requirement and Statutory Liquidity Reserve have been calculated and maintained in accordance with
Financial Institution Act, 1993 & Financial Institution Regulations 1994 and FID Circular No. 06 dated November 06,
2003 and FID Circular No. 02 dated November 10, 2004. The companies do not have any term deposit, therefore there
is no scope of maintaining Cash Reserve Requirement (CRR).
Statutory Liquidity Reserve (SLR) has been calculated at the rate of 5.0% on total liabilities. SLR is maintain in liquid
assets in the form of cash in hand (notes & coin in BDT). From January 2013, the company is maintaining a account
with Bangladesh Bank where sufficient amount to maintain the Statutory Liquidity Reserve (SLR) has been deposited.
256
5 Fixed assets, including Premises, furniture and fixtures
(Amount in Taka)
3 Furnitures and fixtures 928,218 ,124,027 - ,052,245 10% 92,822 305,225 - 398,046 2,654,199
398,046
4 Other equipment 29 61,085 - 61,114 20% - 12,223 - 12,223 12,223 48,891
Balance as on December 31, 2012 928,415 ,088,228 - ,016,643 92,822 498,104 590,926 3,425,717
590,926
Balance as on December 31, 2011 615 927,800 - 928,415 - 92,822 92,822 92,822 835,593
This represents payable to Agrani Bank Limited on account of final settlement of outstanding loan and advance and
interest thereon as on the dates of closing of loan giving activities jointly with the company by the Agrani Bank Ltd.
The account has been taken as determined by the Agrani Bank Ltd., item wise detailed calculation and reconciliation
of the balance is yet to be completed.
258
(Amount in Taka)
Note 2012 2011
8 Share capital
8.1 Authorized Capital : 5,000,000,000 5,000,000,000
During the year the company has issued 400,000 bonus share from General reserve and Right share (5:1) to meet the
capital requirements as prescribed by Bangladesh Bank through DFIM circular dated on July 24, 2011.
The paid up capital of the company is Taka. 1,000,000,000 divided into 10,000,000 ordinary shares of Taka. 100.00
each . This has been made in accordance with the Financial Institution Act 1993.
9 Statutory reserve
Opening balance - -
Add: Transfer from appropriation of profit 5,709,198 -
Closing Balance 5,709,198 -
18 Directors’ Fees:
Honorarium & fees 395,000 -
Each director for every attandence in Board Meeting gets Tk.5,000. Except this, no other charges or allowance is paid
to the directors of the company.
260
(Amount in Taka)
Note 2012 2011
All the amont as mentioned above are relating to the year 2011. Therefor those are adjusted with the opening retained
earnings as prior year adjustment.
_________________________ _________________________
Managing Director / Director Company Secretary
Note 1: Interest on Gratuity Fund amounting Tk. 1,807,672 included in the total interest
Note 2: TDS on Gratuity Fund amounting Tk. 139,719 included in total TDS
Interest income TDS
264
The Agrani SME Financing Company Limited
Schedule of Loan Outstanding (Principal)
As at 31st December 2012
(Amount in Taka) Annex-4
SL No. Branch name 2012 2011
Mymensingh Zone
1 Bhaluka 7,614,693 9,428,236
2 Fulbaria 6,092,412 6,432,557
3 Gafargaon 8,713,023 10,497,019
4 Gouripur 8,453,315 9,517,953
5 Haluaghat 13,999,340 13,475,763
6 Ishwargonj 6,445,669 9,284,614
7 Mymensingh Sadar 12,065,393 12,489,891
8 Muktagacha 13,441,141 15,112,196
9 Nandail 9,140,892 11,568,445
10 Phulpur 11,189,707 9,382,662
11 Trishal 5,113,178 5,346,024
Sub total 102,268,762 112,535,359
Kishoreganj Zone
12 Kishore. Sadar 10,186,908 11,680,709
13 Karimgonj 7,068,859 9,477,628
14 Katiadi 5,875,140 5,560,000
Sub total 23,130,907 26,718,337
Jamalpur Zone
15 Jamalpur Sadar 9,179,677 9,061,464
16 Sherpur Sadar 7,339,950 10,577,850
Sub total 16,519,627 19,639,314
Netrokona Zone
17 Netro. Sadar 13,024,205 13,516,951
18 Kendua 4,818,278 5,345,248
Sub total 17,842,483 18,862,199
Tangail Zone
19 Modhupur 6,491,555 8,836,908
20 Gopalpur 6,532,508 6,960,946
Sub total 13,024,063 15,797,854
Faridpur Zone
21 Zilla Parishad 18,647,520 20,181,091
22 Charvadrashan 16,341,972 19,507,991
23 Sadarpur 12,476,407 13,565,408
24 Bhanga 14,649,783 17,671,846
25 Nagarkanda 16,193,240 15,958,238
26 Boalmari 34,094,852 31,862,274
27 Naliajamalpur 22,173,887 23,709,090
28 Rajbari 16,689,553 17,471,175
29 Pangsha 11,162,100 12,253,963
30 Ahladipur 5,153,282 6,464,914
Sub total 167,582,596 178,645,990
Gopalgonj Zone
31 Gopalgonj 12,258,988 13,490,546
32 Tungipara 8,854,146 9,045,186
33 Kotalipara 4,824,690 7,378,178
Sub total 25,937,824 29,913,910
Madaripur Zone
34 Madaripur 16,514,226 14,788,722
35 Kalkini 10,389,150 8,794,405
36 Takerhut 16,689,553 18,054,499
37 Borhamgonj 8,822,650 8,943,227
38 Shariatpur 8,131,258 8,417,524
Sub total 60,546,837 58,998,377
Grand total 426,853,099 461,111,340
Loans and Advance at Brance Outstanding 426,853,099
Add: Adjustment with Agrani Bank Payable 20,159,962
Total Outstanding 447,013,061
266
AGRANI EXCHANGE HOUSE PRIVATE LIMITED
(Incorporated in the Republic of Singapore)
Co. Reg. No. 200200048D
The directors of the Company in office at the date of this report are as follows:
The Company
(Ordinary shares)
Except as disclosed in this report, no directors who held office at the end of the financial year had interests in shares,
share options, warrants or debentures of the Company, or of the related corporation, either at the beginning of the
financial year, or at the end of the financial year.
At the end of the financial year, there were no unissued shares of the Company under option.
AUDITORS
The auditors, C. C. Yang & Co., have expressed their willingness to accept re-appointment.
……………………………………..
Md. Ali Hossain Prodhania
CEO & Director
……………………………………..
Dr. Khondoker Bazlul Hoque
Chairman
19 March 2013
268
AGRANI EXCHANGE HOUSE PRIVATE LIMITED
(Incorporated in the Republic of Singapore)
Co. Reg. No. 200200048D
STATEMENT BY DIRECTORS
(a) the accompanying financial statements set out in the following sections of the financial statements:
are drawn up so as to give a true and fair view of the state of affairs of the Company as at 31 December 2012 and
the results, changes in equity and cash flows of the Company for the financial year then ended; and
(b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts
as and when they fall due.
……………………………………..
Md. Ali Hossain Prodhania
CEO & Director
……………………………………..
Dr. Khondoker Bazlul Hoque
Chairman
19 March 2013
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity’s preparation of the financial statements that give a true and fair
view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements are properly drawn up in accordance with the provisions of the Act and Singapore
Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Company as at 31 December
2012 and of the results, changes in equity and cash flows of the Company for the financial year ended on that date.
SINGAPORE
19 March 2013
270
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2012
(Expressed in Singapore Dollars)
2012 2011
Note
$ $
2012 2011
Note
$ $
ASSETS
Non-Current Assets
Property, Plant and Equipment, Total 7 102,740 42,693
Current Assets
Income Tax Receivables, Current 659 -
Other Receivables, Current 8 62,265 34,302
Fixed Deposits 9 747,508 953,030
Cash and Bank Balances 9 843,661 754,214
Equity
Share Capital 10 200,000 200,000
Retained Earnings (Accumulated Losses) 1,252,714 1,073,066
Other Reserves, Total - -
Non-Current Liabilities
Deferred Tax Liabilities 11 6,413 6,645
Current Liabilities
Income Tax Payable, Current - 534
Trade and Other Payables, Current 12 297,706 503,994
272
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2012
(Expressed in Singapore Dollars)
Retained
Total Share Earnings
Equity capital (Accumulated
Losses)
Note $ $ $
Total Comprehensive
Income for the Period 179,648 - 179,648
Total Comprehensive
Income for the Period 137,351 - 137,351
Depreciation of Property,
Plant and Equipment 36,946 33,846
Interest Income (3,972) (6,859)
274
AGRANI EXCHANGE HOUSE PRIVATE LIMITED
(Incorporated in the Republic of Singapore)
Co. Reg. No. 200200048D
These notes form an integral part of and should be read in conjunction with the accompanying financial statements.
1. CORPORATE INFORMATION
Agrani Exchange House Private Limited is a limited liability company incorporated and domiciled in the Republic
of Singapore whose registered office and principal place of business is located at 5A Lembu Road Singapore
208444.
The Company is a wholly-owned subsidiary of AGRANI BANK LIMITED, a fully state owned bank of Bangladesh,
which is also the Company’s ultimate holding company.
The principal activities of the Company are to carry on the remittance business and to undertake and participate
in any or all transactions, activities and operations commonly carried on or undertaken by remittance and
exchange house.
The financial statements have been prepared on the historical cost basis except as disclosed in the accounting
policies below.
Functional currency
The management has determined the currency of the primary economic environment in which the Company
operates i.e. functional currency, to be the Singapore dollars. Revenue and major costs of providing services
including major operating expenses are primarily influenced by fluctuations in Singapore dollars.
Except for the Amendments to FRS 1 and FRS 112, the directors expect that the adoption of the other standards
and interpretations above will have no material impact on the financial statements in the period of initial
application. The nature of the impending changes in accounting policy on adoption of the Amendments to FRS
1 and FRS 112 is described below.
The Amendments to FRS 1 change the grouping of items presented in Other Comprehensive Income (OCI).
Items that could be reclassified to profit or loss at a future point in time would be presented separately from
items which will never be reclassified. As the Amendments only affect the presentations of items that are already
recognised in OCI, the Company does not expect any impact on its financial position or performance upon
adoption of this standard.
276
Subsequent expenditure relating to property, plant and equipment that has already been recognised is added
to the carrying amount of the asset only when it is probable that future economic benefits associated with the
item will flow to the Company and the cost of the item can be measured reliably. Other subsequent expenditure
is recognised as repair and maintenance expense in the profit or loss during the financial year in which it is
incurred.
Depreciation is computed on the straight line method to write off the cost of property, plant and equipment over
the estimated useful lives. The estimated useful lives of property, plant and equipment are as follows:-
2.9 Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and the amount of the obligation can be estimated reliably.
Provisions are reviewed at the end of each reporting year and adjusted to reflect the current best estimate. If it is
no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is
reversed. If the effect of the time value of money is material, provisions are discounted using a current pre tax rate
that reflects current market assessments of the time value of money and the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
All financial liabilities are recognised initially at fair value plus in the case of financial liabilities not at fair value
through profit or loss, directly attributable transaction costs.
Subsequent to initial recognition, derivatives are measured at fair value. Other financial liabilities (except for
financial guarantee) are measured at amortised cost using the effective interest method.
For financial liabilities other than derivatives, gains and losses are recognised in the profit or loss when the
liabilities are derecognised, and through the amortisation process. Any gains or losses arising from changes in
fair value of derivatives are recognised in the profit or loss. Net gains or losses on derivatives include exchange
differences.
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expired.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a
derecognition of the original liability and the recognition of a new liability, and the difference in the respective
carrying amounts is recognised in the profit or loss.
278
2.11 Employee benefits
2.12 Leases
Operating leases
Leases where substantially all the risks and rewards incidental to ownership are retained by the lessors are
classified as operating leases. Operating lease payments are recognised as an expense in the profit or loss on
a straight-line basis over the lease term.
The aggregate benefit of incentives provided by the lessor is recognised as a reduction of rental expense over
the lease term on a straight-line basis.
Income taxes
Significant judgement is involved in determining the Company’s provision for income taxes. There are certain
transactions and computations for which the ultimate tax determination is uncertain during the ordinary course of
business. The Company recognises liabilities for expected tax issues based on estimates of whether additional
taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially
recognised, such differences will impact the income tax and deferred tax provisions in the period in which such
determination is made. The carrying amounts of the Company’s income tax payable (receivable) and deferred
tax liabilities at 31 December 2012 were $(659) (2011 - $534) and $6,413 (2011 - $6,645) respectively.
280
3. OTHER INCOME
2012 2011
$ $
2012 2011
$ $
Salaries, wages and
other related costs 408,958 258,854
Employer’s contributions to
Central Provident Fund 4,699 4,976
$ 413,657 $ 263,830
The above includes remuneration of key management personnel as shown in Note 14 to the financial statements.
5. OTHER EXPENSES
2012 2011
$ $
2012 2011
$ $
Based on the results for the year
Current tax - 534
Deferred tax (Note 11) (232) (3,006)
(232) (2,472)
Underprovision (Overprovision)
in respect of prior years
Current tax (534) (9,350)
Deferred tax (Note 11) - 2,574
$ (766) $ (9,248)
2012 2011
$ $
Underprovision (Overprovision)
in respect of prior years
Current tax (534) (9,350)
Deferred tax - 2,574
$ (766) $ (9,248)
The Company has unutilised capital allowances carry forward available for offsetting against future taxable
income as follows:
2012 2011
$ $
Amount at beginning of year - -
Amount in current year 26,184 -
Amount at end of year $ 26,184 $-
Deferred tax benefit set
off against deferred
tax liabilities (Note 11) $ 4,451 $-
282
Furniture Office
Renovation Total
2011 & fittings equipment
$ $ $ $
Cost:
At 1.1.2011 28,270 112,260 65,060 205,590
Additions 1,254 12,451 - 13,705
Accumulated
depreciation:
2012 2011
$ $
Cash and cash equivalents included in the statement of cash flows comprise the following amounts:
2012 2011
$ $
The cash and bank balances include an amount of $195,761 (2011 - $416,448) (Note 12) received from
customers for outward remittance at the end of the reporting year. The amount was subsequently remitted on 3
January 2013 (2011 – 3 January 2012).
The fixed deposits placed with banks mature between 5 – 9 months (2011- 2 – 9 months) from the end of the
reporting year and bear interest at 0.48% to 0.50% (2011 – 0.25% to 0.76%) per annum.
Certain fixed deposits in the previous year were pledged to the bank as collateral for a banker’s guarantee
facility of $200,000.
2012 2011
$ $
Issued and fully paid
200,000 (2011 – 200,000) ordinary shares $ 200,000 $ 200,000
The holder of ordinary shares is entitled to receive dividends as and when declared by the Company. All
ordinary shares of no par value carry one vote per share without restriction.
2012 2011
$ $
Deferred tax liabilities $ 6,413 $ 6,645
The movements in deferred tax liabilities during the year are as follows:
Accelerated Recognised
Particulars Tax Tax Total
Depreciation Benefits
$ $ $
2012 2011
$ $
Accruals 69,945 7,478
Funds received from
customers (Note 9) 195,761 416,448
Advanced deposit 32,000 80,068
$ 297,706 $ 503,994
284
14. RELATED PARTY TRANSACTIONS
An entity or individual is considered a related party for the purpose of these financial statements if it has the
ability (directly or indirectly) to control or exercise significant influence over the operating and financial decisions
of the Company or vice versa, or where it is subject to common control or common significant influence.
The Company does not have any significant related party transaction during the year.
2012 2011
$ $
Directors
Salaries, fees and
other related costs $ 98,789 $ 85,567
Other than the directors, there are no other key management personnel.
The Company’s financial instruments comprise financial assets and liabilities. Financial assets and liabilities
mainly relate to receivables and payables which arise directly from its operations.
The main purpose for holding or issuing financial instruments is to raise and manage the finances for the
Company’s operating, investing and financing activities. There is exposure to the financial risks on the financial
instruments such as credit risk, liquidity risk, market risk comprising interest rate risk, foreign currency risk
and other price risk exposures. The management has certain practices for the management of financial risks.
However, these are not documented in formal written documents. The following guidelines are followed: All
financial risk management activities are carried out and monitored by senior management staff. All financial risk
management activities are carried out following good market practices.
The Company does not hold or issue derivative financial instruments for trading purposes or to hedge against
fluctuations in interest and foreign exchange rates.
The following sections provide details regarding the Company’s exposure to the above-mentioned financial risks
and the objectives, policies and processes for the management of these risks.
Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default on
its obligations. The Company’s exposure to credit risk arises primarily from other receivables. For other financial
assets (including cash and cash equivalents), the Company minimises credit risk by dealing exclusively with high
credit rating counterparties.
The Company has no significant concentration of credit risk. The Company has policies in place to ensure that
transactions are entered into only with counterparties that are of acceptable credit quality. In addition, receivable
balances are monitored on an ongoing basis with the result that the Company’s exposure to bad debts is not
significant.
The maximum exposure to credit risk is represented by the net carrying amount of financial assets recorded in
the financial statements.
Cash and fixed deposits that are neither past due nor impaired are placed with or entered into with reputable
financial institutions or companies with high credit ratings and no history of default.
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting financial obligations due to shortage
of funds. The Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial
assets and liabilities.
As at the end of the reporting year, the expected contractual undiscounted cash outflows of financial liabilities
are due in less than a year.
Interest rate risk is the risk that the fair value or future cash flows of the Company’s financial instruments will
fluctuate because of changes in market interest rates. The Company has no exposure to interest rate risks as
interest arising primarily from fixed deposits placed with the financial institution as disclosed in Note 9 to the
financial statements is fixed and does not fluctuate with changes in market interest rates.
The Company’s operational activities are carried out in Singapore dollars which is its functional currency. All
transactions are paid mainly in local currency. Exposure to any risk arising from movements in foreign currencies
exchange rates is minimal.
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a
going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain
an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The total capital of the Company as at the end of the reporting year is the “Total equity” as presented on the
statement of financial position.
The fair value of a financial instrument is the amount at which the instrument could be exchanged or settled
between knowledgeable and willing parties in an arm’s length transaction, other than in a forced or liquidation
sale.
Management has determined that the carrying amounts of cash and bank balances, fixed deposits, current other
receivables, and current trade and other payables, based on their notional amounts, reasonably approximate
their fair values because these are mostly short term in nature.
The financial statements for the year ended 31 December 2012 were authorised for issue in accordance with a
resolution of the directors on 19 March 2013.
286
THE ACCOMPANYING FINANCIAL STATEMENTS
HAVE BEEN PREPARED FOR
MANAGEMENT PURPOSES ONLY
AND DO NOT FORM PART
OF THE AUDITED STATUTORY FINANCIAL STATEMENTS
APPENDIX
2012 2011
$ $
Add:
OTHER INCOME
31,578 27,374
1,081,968 770,953
Less:
EXPENSES
903,086 642,850
288
APPENDIX B
STATEMENT OF REMITTANCE TRANSACTIONS
For the year ended 31 December 2012
(Expressed in Singapore Dollars)
2012 2011
$ $
290
AGRANI REMITTANCE HOUSE SDN. BHD.
Company No. 706823-M (Incorporated in Malaysia)
CORPORATE INFORMATION
DIRECTORS’ REPORT
The directors hereby submit their report together with the audited financial statements of the Company for the financial
year ended 31 December 2012.
PRINCIPAL ACTIVITY
The principal activity of the company during the financial year is that of providing remittance services from Malaysia to
Bangladesh. There has been no significant change in this principal activity during the financial year.
FINANCIAL RESULTS
RM
Profit for the year before taxation 22,128
Taxation (10,037)
Net profit for the year after taxation 12,091
DIVIDENDS
No amount has been paid or declared or recommended to be paid by way of dividend during the financial year.
DIRECTORS
The directors who held office during the year since the date of the last report are:-
DIRECTORS’ BENEFITS
During and at the end of the financial year, no arrangements subsisted to which the Company is a party, with the object
or objects of enabling the directors of the Company to acquire benefits by means of acquisition of shares or debentures
of, the Company or any other body corporate.
No director has since the end of the previous financial year, received or become entitled to receive any benefit (other
than a benefit included in the aggregate amount of emoluments received or due and receivable by directors shown in
the financial statements or the fixed salary of a full-time employee of the Company) by reason of a contract made by the
Company or a related corporation with the director or with a firm of which the director is a member, or with a company in
which the director has a substantial financial interest.
DIRECTORS’ INTERESTS
According to the register of directors’ shareholdings, none of directors in office at the end of the financial year held any
share in the Company during the financial year ended 31 December 2012.
292
ISSUE OF SHARES AND DEBENTURES
The Company has not issued any shares or debentures during the financial year.
At the date of this report, the directors are not aware of any circumstances, which would render the amount written off
for bad debts or the amount of the allowance for doubtful debts in the financial statements of the company inadequate to
any substantial extent.
CURRENT ASSETS
Before the income statement and balance sheet of the company were made out, the directors took reasonable steps to
ensure that any current assets, other than debts, which were unlikely to realise in the ordinary course of business their
values as shown in the accounting records of the company have been written down to an amount which they might be
expected to realise.
At the date of this report, the directors are not aware of any circumstances, which would render the values attributed to
the current assets in the financial statements of the company misleading.
VALUATION METHODS
At the date of this report, the directors are not aware of any circumstances which have arisen which render adherence to
the existing method of valuation of assets or liabilities of the Company misleading or inappropriate.
CHANGE OF CIRCUMSTANCES
At the date of this report, the directors are not aware of any circumstances, not otherwise dealt with in this report or the
financial statements which would render any amount stated in the financial statements misleading.
OPTIONS
No option has been granted during the year ended covered by the income statement to take up unissued shares of the
Company.
___________________________
DR. KHONDOKER BAZLUL HOQUE
Chairman/Director
________________________________ ________________________________
SYED ABDUL HAMID MOHAMMAD SHAMS-UL-ISLAM
Director Director
________________________________ ________________________________
MANTU KUMAR BISWAS SAID ABU HASSAN
Director BIN SAID ABUL FAZAL
Director
________________________________
MD. WALI ULLAH
Director
Kuala Lumpur
Dated: 15 MAR 2013
294
AGRANI REMITTANCE HOUSE SDN. BHD.
Company No. 706823-M (Incorporated in Malaysia)
STATEMENT BY DIRECTORS
We, MD. WALI ULLAH and MANTU KUMAR BISWAS, being two of the directors of AGRANI REMITTANCE HOUSE
SDN. BHD., do hereby state that in the opinion of the directors, the accompanying balance sheet and related statements
of income, changes in equity and cash flow are drawn up in accordance with the MASB Financial Reporting Standards
and the provisions of the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the
Company as at 31 December 2012 and of the results and cash flows of the Company for the financial year then ended.
_______________________________ _________________________
MD. WALI ULLAH MANTU KUMAR BISWAS
Director Director
Kuala Lumpur
Dated: 15 MAR 2013
STATUTORY DECLARATION
I, MD. WALI ULLAH, being the director primarily responsible for the financial management of AGRANI REMITTANCE
HOUSE SDN. BHD.,do solemnly and sincerely declare that the financial statements are, to the best of my knowledge
and belief, correct, and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the
provisions of the Statutory Declarations Act, 1960.
_______________________________
MD. WALI ULLAH
Director
Subscribed and solemnly declared by the above named at Kuala Lumpur in the State of Federal Territory on 15 MAR
2013
Before me,
………………………………………..
Commissioner for Oaths
296
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF
AGRANI REMITTANCE HOUSE SDN. BHD.
Report on the financial statement
We have audited the financial statements of AGRANI REMITTANCE HOUSE SDN. BHD. which comprise the balance
sheet as at 31 December 2012 and the income statement, statement of changes in equity and cash flow statement for
the year then ended, and a summary of significant accounting policies and other explanatory notes.
The directors of the company are responsible for the preparation and fair presentation of these financial statements in
accordance with the MASB Financial Reporting Standards and the Companies Act, 1965 in Malaysia. This responsibility
includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying
appropriate accounting estimates that are reasonable in the circumstances.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risks assessments, we consider internal control
relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used the
reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the
financial statements.
We believe that audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements have been properly drawn up in accordance with the MASB Financial Reporting
Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the
company as at 31 December 2012 and of its financial performance and cash flows for the year then ended.
Other matters
This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Company’s
Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of
this report.
AHAMAD NAINA MYDIN & ASSOCIATES AHAMAD NAINA BIN MOHAMED MYDIN
[NO. AF: 0938] [Approval No. 1468/12/14(J)]
Chartered Accountants
Kuala Lumpur
Dated: 15 March 2013
2012 2011
Notes
RM RM
Assets
Non-current Assets 3 81,024 69,991
Property, plant and equipment 81,024 69,991
298
Agrani Remittance House SDN. BHD.
Income Statement
For the year ended 31 December 2012
2012 2011
Notes
RM RM
(951,932) (627,962)
Accumulated
Share Capital Total
Profit
RM RM
RM
300
Agrani Remittance House SDN. BHD.
Cash Flow Statement
For the year ended 31 December 2012
2012 2011
RM RM
Cash flows from operating activities
1. GENERAL INFORMATION
The principal activity of the company during the financial year is that of providing remittance services from
Malaysia to Bangladesh. There has been no significant change in this principal activity during the financial year.
The company is a private limited liability Company, incorporated and domiciled in Malaysia. The registered office
of the Company is located at Suite 13.01, 13th Floor, Tower Block Plaza Pekeliling, Jalan Tun Razak, 50400
Kuala Lumpur,
The number of employees in the Company at the end of the financial year were 4 (2011:4)
The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of
the directors on 15 March 2013.
302
An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition
of the asset is included in the income statement in the year the asset is derecognised.
(b) Receivables
Receivables are carried at anticipated realisable values. Bad debts are written off when identified.
An estimate is made for doubtful debts based on review of all outstanding amounts as at the
balance sheet date.
(c) Payables
Payables are stated at cost, which is the fair value of the consideration to be paid in the future for
goods and services received.
(d) Taxation
The tax expense in the income statement represents the aggregate amount of current tax and deferred
tax. Current tax is the expected amount of income taxes payable in respect of the taxable profit for the
year and is measured using the tax rates that have been enacted at the balance sheet date.
Deferred tax is provided for, using the liability method, on temporary differences at the balance
sheet date arising between the tax bases of assets and liabilities and their carrying amounts in the
financial statements. In principle, deferred tax liabilities are recognised for all taxable temporary
differences and deferred tax assets are recognised for all deductible temporary differences,
unused tax losses and unused tax credits to the extent that it is probable that taxable profit will
be available against which the deductible temporary differences, unused tax losses and unused
tax credits can be utilised. Deferred tax is not accounted for if it arises from initial recognition
on an asset or liability in a transaction other than a business combination that at the time of the
transaction affects neither accounting nor taxable profit or loss.
Deferred tax is measured at the tax rates that are expected to apply in the period when the asset
is realised or the liability is settled, based on tax rates that have been enacted or substantively
enacted at the balance sheet date. Deferred tax is recognised in the income statement, except
when it arises from a transaction which is recognised directly in equity, in which case the deferred
tax is also charged or credited directly in equity, or when it arises from a business combination that
is an acquisition, in which case the deferred tax is included in the resulting goodwill or the amount
of any excess of the acquiree’s interest in the net fair value of the acquiree’s identifiable assets,
liabilities and contingent liabilities over the cost of the combination.
(e) Impairment of assets
The carrying amounts of assets other than inventories, assets and non-current assets held for
sale, are reviewed at each balance sheet date to determine whether there is any indication of
impairment.
If any such indication exists, the asset’s recoverable amount is estimated to determine the amount
of impairment loss. For goodwill and intangible assets that have indefinite useful lives or that are
not yet available for use, the recoverable amount is estimated at each reporting date.
An impairment loss is recognised if the carrying amount of an asset or its cash generating unit
exceeds its recoverable amount unless the asset is carried at a revalued amount, in which case the
impairment loss is recognised directly against any revaluation surplus for the asset to the extent
that the impairment loss does not exceed the amount in the revaluation surplus for that same
asset. A cash-generating unit is the smallest identifiable asset group that generates cash flows
that largely are independent from other assets and groups. Impairment losses are recognised
in the income statement. Impairment losses recognised in respect of cash-generating units are
allocated first to reduce the carrying amount of any goodwill allocated to the units and then to
reduce the carrying amount of the other assets in the unit on a prorata basis.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use
and its fair value less costs to sell. In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment
losses recognised in prior periods are assessed at each reporting date for any indications that the
loss has decreased or no longer exists. An impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable amount. An impairment loss is reversed only to
the extent that the asset’s carrying amount does not exceed the carrying amount that would have
been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
304
3. Property, Plant and Equipment
Cost
As at As at
Additions Disposal
01.01.2012 31.12.2012
Accumulated Depriciation
As at As at
Additions Disposal
01.01.2012 31.12.2012
Authorised:
Ordinary shares of RM 1.00 each as at Januray 01, 2012 1,000,000 500,000
Created during the year - 500,000
As at 31 December 2012 1,000,000 1,000,000
7. Revenue
The folling items have been charged/credited in arriving at profit from operations:
After charging:
After crediting:
Other Income 7,860 10,190
Fixed Deposit Interest 27,390 49,752
9 Staff Costs
11 Director Fee
306
12. FINANCIAL RISK MANAGEMENT
The Company’s financial risk management policy seeks to ensure that adequate financial resources are
available for the development of the Company’s business whilst managing its risks. The Company operates
within clearly defined guidelines that are approved by the Board and the Company’s policy is not to engage in
speculative transactions.
The main areas of financial risks faced by the Company and the policy in respect of the major areas of treasury
activity are set out as follows:
a) Credit Risk
Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default
on its obligations. The company’s exposure to credit risk arises primarily from other receivables and financial
assets (including cash and cash equivalents).
The credit risk is controlled by the application of credit approvals, limit and monitoring procedures. An internal
credit review is conducted if the credit risk is material.
b) Operational risk
The company ensures quick and proper management of operational risk which may arise from fraud, error,
omission, unauthorised activities, inefficiency, system failure from external events.
c) Market risk
The market risk which may drive from loss of earnings due to change in the interest rate, foreign exchange rate
etc. is handled with care the company.
2012 2011
RM RM
979,009 643,817
308
For Management Purpose Only
Appendix I
1. Dhaka Circle 1
Al-Amin Centre (4th Floor)
25/A Dilkusha C/A, Dhaka-1000
2. Dhaka Circle 2
Al-Amin Centre (5th Floor)
25/A Dilkusha C/A, Dhaka-1000
3. Chittagong Circle
Kaderi Chamber
37 Agrabad, Chittagong
4. Rajshahi Circle
Lakshmipur, Rajshahi
5. Khulna Circle
Shilpa Bank Bhaban (4th Floor)
Khulna
6. Barisal Circle
Agrani Bank Bhaban
Sadar Road, Barisal
7. Sylhet Circle
28/A Bihongo, Kazitola, Sylhet
8. Rangpur Circle
Central Road, Rangpur
9. Comilla Circle
Eng. Institutions Market
Tomsom Bridge, Laksham Road
Comilla
11. Faridpur
Chowk Bazar, Faridpur
312
List of
Corporate Branches
314
Sl No. Name & Address Phone Cable Address
316
Zone Wise
List of Branches
318
9. Lahirikanda 1. Bhitorbondhat
26. Gaibandha Zone 10. Pingna 33. Khulna North 2. Bhurungamari
1. Bonarpara 11. Piyarpur Zone 3. Chilmari
2. Dholbhanga 12. Sarishabari 1. Baikali 4. Kurigram
3. Fulcharighat 13. Shahbazpur 2. Daulatpur 5. Lalmonirhat
4. Gaibandha 14. Station Road 3. Goal Para 6. Nageswari
5. Kamarpara 4. Jessore Road 7. Nazimkhan
6. Naldanga 30. Jessore Zone 5. K.D.A. New Market 8. Fulbari
7. Panchpir Bazar 1. Bazar 6. Kazdia 9. Rajarhat
8. Rasulpur 2. Benapole Bazar 7. Khalishpur 10. Ulipur
9. Sadullapur 3. Bimanghati 8. Moheswarpasha
10. Saghatta 4. Daratana Road 9. Neval Base 37. Kushtia Zone
11. Sundargonj 5. Gadkhali Bazar 10. Fulbarigate 1. Allahar Dargah
6. Ganganandapur 11. Fultola 2. Bara Bazar
27. Gazipur Zone 7. Hashimpur
1. Board Bazar 12. Sheikhpura Bazar 3. Baragangadia
8. Jessore 13. Terokhada 4. Bheramara
2. Bormi Bazar
9. Jhikargacha 5. Daulatpur
3. Dolan Bazar
10. Jhumjhumpur 34. Khulna South 6. Golapnagar Bazar
4. DUET
5. Gazipur 11. JSTU Zone 7. Islamic University
6. Ghagtia Chalar 12. Keshabpur 1. Bajua Bazar 8. Khalishakundi
Bazar 13. Nowapara 2. Banargati Bazar 9. Kumarkhali
7. Goshinga 14. Protappur 3. Baka Bazar 10. Mathurapur
8. Kaoraid 15. Pulerhat 4. Batbunia Bazar 11. Mazampur
9. Kapasia 16. Rail Bazar 5. Chuknagar 12. Mirpur
10. Kashimpur 17. Rajarhat 6. Farajipara 13. New Market
11. Maona Bazar 18. Sheikh Hati 7. Jaigir Mohal 14. Panti
12. Nagari 8. Kapilmuni 15. Patikabari
13. Rajabari 31. Jhenaidah Zone 9. Khanjahan Ali 16. Pragpur
14. Sreepur 1. Bazar Gopalpur Road 17. S.C.B Road
15. Tokenayan Bazar 2. Beroil Palita Bazar 10. Khulna Medical 18. Shilaidaha
16. Tongi 3. Bhaynarmor
College & Hospital 19. Station Road
4. Chaprail
11. Khulna University 20. Thanapara
28. Gopalgonj Zone 5. Hajipur
12. Liakatnagar (Dada 21. Ujangram
1. Bangram Bazar 6. Halidhani Bazar
2. Gopalgonj Match)
7. Hamdah Bus
3. Jalirpar 13. Rupsha Strand 38. Laxmipur Zone
Stand
4. Jhutigram Road 1. Bhabanigonj
8. Isakhada
5. Kashiani 14. Shamsur Rahman 2. Chandragonj
9. Jhenaidah
6. Kotalipara Road 3. Dalal Bazar
10. Kabirpur Bazar
7. Mukshudpur 11. Kaligonj 4. Dasherhat
8. Poura Super 12. Kannadaha 35. Kishoregonj Zone 5. Doshghoria
Market 13. Magura 1. Bazitpur 6. Khilpara Bazar
9. Tungipara 14. Sadhuhati 2. Bhairab Bazar 7. Laxmipur
3. Charpumdi 8. Mandari Bazar
29. Jamalpur Zone 32. Joypurhat Zone 4. Hossainpur 9. Panpara Bazar
1. Balijhuri Bazar 5. Karimgonj 10. Raipur
1. Akkelpur
2. Bus Stand 6. Katiadi Bazar 11. Ramgonj
2. Awlai
3. Hazipur Bazar 7. Kishoregonj 12. Ramgoti
3. Chawk Barkat
4. Islampur Bazar 13. Sompara
4. Joypurhat 8. Kuliarchar
5. Jagannathgonj
5. Joypurhat Girls’ 9. Mirzapur
Ghat 39. Madaripur Zone
Cadet College 10. Mathkhola
6. Jamalpur
6. Kalai 11. Nikli 1. Barhamgonj
7. Jamtoli Bazar
7. Kusumba 12. Pakundia 2. Damudda
8. Jamuna Fertilizer
8. Matrai 3. Jajira
Factory
9. Panchbibi 36. Kurigram Zone 4. Kalkini
320
3. Main Road 56. Satkhira Zone 59. Sylhet East Zone 61. Tangail Zone
4. Mathbaria 1. Bangshipur Bus 1 Bandar Bazar 1. Aishara
5. Mirukhali Stand 2. Beani Bazar 2. Bashail
6. Parerhat 2. Bhetkhali 3. Chawk Bazar 3. Bhuapur
7. Zillia Parishad 3. Debhata 4. Deulgram Bazar 4. Dhuburia
4. Gazir Hat 5. Dhaka Dokhin
54. Rajshahi Zone 5. Ghatail
5. Moutala 6. Fenchugonj
1. Baju Bagha 6. Gopalpur
6. Munshigonj Bazar 7. Gasbari Bazar
2. Baliaghata 7. Hemnagar
3. Baneshwar Bazar 7. Noor Nagar 8. Godown Bazar
8. Patkel Ghata 8. Kanchanpur
4. Charghat 9. Golapgonj
5. Horian 9. Satkhira 10. Hetimgonj 9. Karatia
6. Laxmipur 10. Shyamnagar 11. Jalalpur Bazar 10. Kaualzani
7. Malopara 12. Kakordi Bazar 11. Madhupur
8. Nagar Bhaban 57. Sherpur Zone 13. Kuchai 12. Mirzapur
9. Nawhatta 1. Kakorkandi 14. Mathiura (Eidgah) 13. Mirzapur Cadet
10. New Market 2. Nandir Bazar 15. Ramdha Bazar College
11. Puthia 3. Nolitabari
12. Raighati 16. Saraker Bazar 14. Mahera
4. Nonni Bazar
13. Rajshahi Cantonment 17. Shahgoli Bazar 15. Mymensingh
5. Sherpur
14. Rajshahi 18. Shibgonj Sarak
6. Tinani Bazar
University 19. Station Road
16. Nagarpur
15. Talaimari 60. Sylhet West Zone
58. Sirajgonj Zone 17. Nalua Bazar
16. WAPDA (IRRI) 1. Ambari Bazar
1. Bahuli 18. Sakhipur Bazar
2. Ambarkhana.
55. Rangpur Zone 2. Beltail 19. Salimabad
3. Bairagir Bazar
1. Alam Nagar 3. Brammogacha 20. Suruj Bazar
4. Balagonj
2. Badargonj 4. Chandaikona 21. Tangail
5. Biswanath
3. Bus Terminal Road 5. Dhubil
6. Boaljur Bazar 22. Warshi
4. Central Road 6. Enayetpur
5. Jaldhaka 7. Chattak 23. Zamurki
7. Ghurkha
6. Medical College 8. Kalibari 8. Derai
Hospital 9. Khidramatia 9. Duara Bazar 62. Thakurgaon Zone
7. Nekmamud Hat 10. New Market 10. Goala Bazar 1. Chaklahat
8. Nilphamari 11. Haripur Gas Field 2. Horipur
11. Nimgachi
9. Pawtana Hat 12. Kaligonj Bazar
12. Pangashi Hat 3. Jagodalhat
10. Peergacha 13. Kazir Bazar
11. Rangpur Cadet 13. Purjana Bhat Para 4. Mirzapur
14. Raigonj 14. Lala Bazar
College 5. Munshir Hat
15. S.S.Road 15. Salutikar Bazar
12. Rangpur Main 6. Panchagar
13. Sayedpur 16. Shahjadpur 16. Subid Bazar
7. Pirgonj
14. Sayedpur 17. Sameshpur 17. Sunamgonj
18. Umarpur Bazar 8. Shalbahanhat
Cantonment 18. Station Road
15. Shaner Hat 19. Talgachi Bazar 19. Zaflong 9. Thakurgaon
16. Taragonj 20. Ullapara 20. Zinda Bazar 10. Tunirhat
322
ICU Internal Control Unit RAF Risk Appetite Framework
IFMS Instant Financial Messaging System RBCA Risk Based Capital Adequacy
IFRS International Financial Reporting Standards RBIA Risk Based Internal Audit
IMF International Monetary Fund RE Retained Earnings
IPO Initial Public Offering R&D Research and Development
IRB Internal Rating Based Repo Re-purchase Agreement
IRR Interest Rate Risk RMC Risk Management Committee
IRRBB Interest Rate Risk in the Banking Book RMD Risk Management Department
IT Information Technology RMG Ready Made Garments
KPI Key Performance Indicators RMU Risk Management Unit
KYC Know Your Customer ROA Return on Assets (excluding contingent items)
LAN Local Area Network RoE Return on Equity
LDCL Loan Document Check List RoI Return on Investment
LGD Loss Given Default ROD Right Share Offer Document
LIBOR London Inter-Bank Offering Rates RPGCL Rupantarita Prakkritik Gas Company Limited
LIC Low Income Country RSA Rate Sensitive Assets
LIM Loan against Imported Merchandise RSL Rate Sensitive Liabilities
LTR Loan against Trust Receipt RU Recovery Unit
MANCOM Management Committee RW Risk Weighted
MCO Maximum Cumulative Outflow RWA Risk Weighted Assets
MDA Modified Duration of Assets SA Standardized Approach
MDL Modified Duration of Liabilities SAF Super Annuation Fund
MCR Minimum Capital Requirement SAFA South Asian Federation of Accountants
MDS Monthly Deposit Scheme SCB State-Owned Commercial Bank
MICR Magnetic Ink Character Recognition SEC Securities and Exchange Commission
MIS Monthly Deposit Scheme SEDP Small Enterprise Development Program
MIS Management Information System SGD Singapore Dollar
MOU Memorandum of Understanding SLR Statutory Liquidity Ratio
MTMF Medium Term Macro Economic Framework SREP Supervisory Review Evaluation Process
MYR Malaysian Ringgit SRP Supervisory Review Process
NBFI Non-Banking Financial Institution SMA Special Mention Account
NCB Nationalized Commercial Bank SME Small and Medium Enterprise
NFCD Non-Resident Foreign Currency Deposit Account SMS Short Message Service
NII Net Interest Income SOE State Owned Enterprise
NPA Non-Performing Assets SOP Standard Operating Procedure
NPL Non-Performing Loan SREP Supervisory Review Evaluation Process
OBS Off-Balance Sheet SRP Supervisory Review Process
OBU Offshore Banking Unit STD Short Term Deposit
PC Packing Credit STR Suspicious Transaction Report
PCB Private Commercial Bank SWAP Sell with a Purchase
PD Primary Dealer SWIFT Society for Worldwide Inter-bank Financial
PD Probability of Default Telecommunication
PEP Politically Exposed Persons SWOT Strengths, Weaknesses, Opportunities,
PLST Political, Legal, Social and Technological Analysis Threats Analysis
POS Point of Sales ToR Terms of Reference
PRL Post Retirement Leave TP Transaction Profile
PPP Public Private Partnership UCP Uniform Customs and Practice
PRSP Poverty Reduction Strategy Paper VaR Value at Risk
PSP Protirakkha Sanchaya Patra WAN Wide Area Network
PUC Paid Up Capital WBG Wholesale Borrowing Guidelines
PV Present Value WEO World Economic Outlook
QOR Quarterly Operations Report WTO World Trade Organization