Annual Report 2012 of Agrani Bank Limited PDF

Annual Report
2012
9/D Dilkusha Commercial Area Dhaka 1000

www.agranibank.org
02
Contents
Corporate Profile 09
Vision, Mission, Motto, Values 10
Strategic Objectives, Ethical Standards 11
Notice of the Sixth Annual General Meeting 12
Letter of Transmittal 13
Board of Directors 14
Board Audit Committee, Trustees of ABL Employees’ Provident Fund 16
Auditors, Credit Rating Company, Income Tax Advisor, Legal Consultant 16
Management Team 17
Five Years’ Performance at a Glance 20
Graphical presentation of Performance 22
Major Achievements in 2012 24
Chairman’s Message 25
Highlights of 2012 28
Managing Director & CEO’s Round Up 29
Shareholders' Information 32
Picture of Annual General Meetings 33
Financial Highlights of 2012 and 2011 35
Key Ratios 36
Graphical Presentation of Key Financial Information 37
Maintaining Capital Adequacy 39
Products and Services 40
Risk Management 43
Disclosure Under BASEL II 49
Corporate Social Responsibility 59
Directors’ Report to the Shareholders 65
Global Economic Scenario 66
Track Record of Bangladesh Economy 67
Macro Economic Scenario of Bangladesh 68
Medium Term Prospect of Bangladesh Economy 73
Digital Bangladesh 75
Perspective Plan 2010-2021 76
Emergence of Agrani Bank Limited 77
Annual Report 2012 03

Contents
Progress Achieved in 2012 79
Shareholder’s Equity 79
Funding Structure 79
Asset Portfolio 80
Business Performance 80
Deposits 80
Import-Export Business 81
Foreign Remittance Business 82
Guarantee Business 84
Fund Management and Treasury Operation 84
Investment 85
Loans and Advances 86
Industrial Credit 88
Credit Lines 89
Loan to Power and Health Sector 90
Syndication Financing 90
Green Banking Financing 91
SME Financing 92
NGO Linkage Programs of ABL 93
Foreign Aided Credit Programs of ABL 93
Agriculture and Rural Credit 95
Loan Classification and Provisioning 96
Loan Recovery Activities 96
Six Subsidiary Companies of ABL 97
Agrani Equity & Investment Limited 97
Agrani SME Financing Company Limited 100
Agrani Exchange House Private Limited, Singapore 102
Agrani Remittance House Sdn. Bhd., Malaysia 103
Agrani Remittance House Canada Inc. 104
Agrani Exchange Company (Australia) Pty. Limited 105
Financial Performance 106
Total Operating Income and Operating Expenditure 106
Net Interest Income, Operating Profit 106
Capital Adequacy Ratio 107
Automation and Modernization 108
Overall Automation 109
04
Contents
Online Banking 110
BACH, BEFTN, SWIFT, e-GP 112
ATM, Mobile Banking 113
Agent Banking 114
Distribution of SEQAEP Stipend 115
Online CIB Reporting 116
Newsletter 116
Audit & Inspection during 2012 116
Business Risk Management 118
Credit Rating 120
Implementation of Basel II 121
Corporate Social Responsibility 121
HR Management and Development 122
Planning, Recruitment, Promotion & Departure 122
Training and Development 124
Contribution to National Exchequer 127
Outlook for 2013 128
Preparation of Financial Statements 128
Dividend Declaration 129
Appointment of Auditors 129
Acknowledgements 129
Corporate Governance 131
Meetings of the Old Board during 2012 132
Meetings of the New Board during 2012 132
Independent Directors 133
Audit Committee of the Old Board 133
Role of Audit & Inspection Division 134
Role and Function of Internal Control & Compliance Division 134

Contents
Bangladesh Bank’s Guideline for Corporate Governance 135
Directors’ Statement of Responsibilities 138
Report of the Board Audit Committee 139
Auditors’ Report & Audited Financial Statements 141
Auditors’ Report 142
Consolidated Balance Sheet 144
Consolidated Off Balance Sheet Items 145
Consolidated Profit and Loss Account 146
Consolidated Cash Flow Statement 147
Consolidated Statement of Changes in Equity 148
Consolidated Liquidity Statement 149
Notes to the Financial Statements 156
Nostro Accounts Outside Bangladesh 215
Details of Advance Tax and Provision of Taxation 216
Fixed Assets Including Land, Buildings, Furniture and Fixtures 217
Highlights on the Overall Activities of the Bank 222
Islamic Banking Unit of ABL 223
Auditors’ Report & Financial Statements of 4 Subsidiary Companies 227
Agrani Equity & Investment Limited 227
Agrani SME Financing Company Limited 242
Agrani Exchange House Private Limited, Singapore 267
Agrani Remittance House Sdn. Bhd., Malaysia 291
Circle Offices 312
Zones 313
Corporate Branch Offices 314
AD Branch Offices 315
Zone-wise List of Branches 318
Glossary of Acronyms 323
06
Graphs
Presentation of Performance 22
Operating Profit 22
Net Asset Value Per Share 22
Deposit 22
Net Loans and Advances 22
Shareholders’ Equity 23
Cost to Income Ratio 23
Non Interest Income 23
Non Performing Assets 23
Major Achievements in 2012 24
Highlights of 2012 28
Presentation of Key Financial Information 37
Deposit Mix of 2012 37
Advance Deposit Ratio 37
Loans & Advance Matrix 2012 37
Total Classified Loans in Percentage 37
Net Classified Loans to Net Loans in Percentage 37
Constituent of Assets 2012 37
Fixed Assets Growth 38
Capital Growth 38
Growth of Advances 2012 38
Growth of Deposits 2012 38
Asset Portfolio 80
Deposit Mix 2012 81
Country-wise Remittance 2012 83
Investment 2012 86
Sector-wise Position of Loans 87

Tables
Five Years' Performance at a Glance 20
Distribution of Shares 32
Shares held by Directors as on 31 December 2012 32
Financial Highlights 35
Key Ratios 36
Capital Structure 53
Balance Sheet Exposure : Region-wise 55
Off Balance Sheet Exposure : Region-wise 55
Credit Exposure : Sector-wise 55
Contribution to CSR Activities 64
Sources of Fund 80
Asset Portfolio 80
Types of Deposit 81
Bank-wise Position of Remittance 82
Country-wise Remittance 83
Item-wise Income of Treasury 85
Investment 2012 and 2011 86
Sector-wise Loans 2012 and 2011 87
Comparative Study of Project Loans 88
Credit Lines 89
SME Position of ABL in 2012 93
Recovery Position of Classified and Overdue Loans & Advances 97
Appropriation of Profit 106
Details of Capital Adequacy 107
Audit Plan for the Year 2013 117
Credit Rating 120
CSR Activities of 2012 122
Training Courses in 2012 125
Workshops in 2012 126
Contribution to National Exchequer 127
Meetings of the Board During 2012 132
Meetings of the Board Audit Committee 2012 133
08
Corporate Profile
As on 31.12. 2012
Genesis Agrani Bank Limited (ABL) was incorporated as a State owned

Commercial Bank (SCB) on 17 May 2007 under the Companies Act 1994.
Agrani Bank emerged as a Nationalized Commercial Bank (NCB)
following the Bangladesh Banks (Nationalization) Order 1972 vide
President's Order No. 26 of 1972. On a going concern basis ABL took over
the business, assets, liabilities, rights and obligations of Agrani Bank
through a vendor's agreement signed on 15 November 2007 between the
Ministry of Finance of the People’s Republic of Bangladesh & the Board of
Directors of ABL with retrospective effect from 1 July 2007.
Legal Status Public Limited Company (governed by the Bank Companies Act 1991)
Chairman Khondoker Bazlul Hoque, PhD
Managing Director & CEO Syed Abdul Hamid, PhD, FCA
Company Secretary Badal Chandra Dey
Registered Office 9/D Dilkusha Commercial Area Dhaka 1000 Bangladesh
Authorised Capital Tk. 2500.00 Crore
Paid up Capital Tk. 991.29 Crore
Operating Profit Tk. 1006.74 Crore

Credit Rating By CRISL (Rating declared on 26 September 2012)
Entity Rating 2011 Long Term Short Term
(As Government Guaranteed Bank) AAA ST- 1
Surveillance Rating 2011
A+ ST- 2
(Stand Alone Basis)
Outlook 2011 Stable
Employees 13,890 (9,917 officers and 3,973 staffs)
Branches 889
Subsidiary Companies 6
Phone +88-02-9566153-4, +88-02-9566160-9, +88-02-9566074-5
Fax +88-02-9562346, +88-02-9563662, +88-02-9563658
SWIFT AGBKBDDH
Website www.agranibank.org
E-mail agrani@agranibank.org info@agranibank.org

Vision
To become the best leading state owned commercial bank
of Bangladesh operating at international level of efficiency,
quality, sound management, customer service and strong
liquidity.
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.

Notice of the Sixth
Annual General Meeting
Notice is hereby given to all Shareholders of Agrani Bank Limited that the 6th
Annual General Meeting of the Company will be held on 6th October 2013 at
7.30 PM, room ‘Bakul’ of Rupashi Bangla Hotel in Dhaka, to transact the
following business and adopt necessary resolutions:
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.
By Order of the Board of Directors
Badal Chandra Dey

Dated : 21 September 2013 Company Secretary
12
Letter of
Transmittal
To
All shareholders
Registrar of Joint Stock Companies & Firms
Securities and Exchange Commission
Dhaka.
Sub: Annual Report for the year ended 31 December 2012.
Dear Sir (s)

We are pleased to enclose herewith a copy of the Annual Report
2012, together with the Audited Financial Statements of Agrani Bank
Limited and its Subsidiary Companies - Agrani Equity & Investment
Limited, Agrani SME Financing Company Limited, Agrani Exchange
House Private Limited, Singapore and Agrani Remittance House
Sdn. Bhd., Malaysia for your kind information and record.
Yours sincerely
Syed Abdul Hamid, PhD, FCA

Managing Director & CEO

Board of
Directors
Chairman
Khondoker Bazlul Hoque, PhD
Professor
Department of International Business
University of Dhaka
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.)
Niaz Rahim Hasina Newaaz

Director Entrepreneur
Rahim Afrooz Group of Company
Advocate Balaram Podder Managing Director & CEO
Law Practitioner and Social Worker Agrani Bank Limited
Company Secretary
Badal Chandra Dey
14
Board of
Directors
Khondoker Bazlul Hoque, PhD

Chairman
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

Composition of
Committees
Board of Trustees of Agrani Bank limited
Employees’ Provident Fund Trust
Board Audit Committee
1. K.M.N. Manjurul Hoque Lablu
Chairman & Director of the Board
1. Ranjit Kumar Chakraborty
2. Syed Abdul Hamid, PhD, FCA
Chairman & Director of the Board
Member & Managing Director & CEO
3. Md. Obayed Ullah Al Masud 2. Shekhar Dutta

Member & Deputy Managing Director Member & Director of the Board
4. Mohammad Shams-Ul Islam 3. Nagibul Islam Dipu

5. A. K. M. Mujibur Rahman 4. Engineer Md. Abdus Sabur

6. Muhammad Awal Khan
5. A.K. Gulam Kibria, FCA
Member & Deputy Managing Director
Member & Director of the Board
7. Md. Nazrul Islam Farazi
Member & General Manager (CAD)
8. Md. Rafiqul Alam

Member & General Manager (Admin)
9. Md. Yusuf Ali

Member Secretary & DGM (CAD)
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
Income Tax Advisor Legal Consultant

M/s L.R. Bhuiyan and Associates Mr. Shahjahan Majumder
6 Bijoy Nagar (2nd Floor), Dhaka 1000
Credit Rating Company

Credit Rating Information and Services Limited (CRISL)
Nakshi Homes, 6/1/A Segun Bagicha, Dhaka 1000
16
Management
Team
Syed Abdul Hamid, Phd, FCA

Deputy Managing Directors
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

Management
Team

Deputy Managing Directors

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
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

Five Years'
Performance at a Glance
Taka in crore
Particulars 2012 2011 2010 2009 2008
Balance Sheet
Authorized Capital 2,500 1,000 800 800 800
Paid-up Capital 991 901 547 497 248
Reserves 1,168 1,168 486 139 74
Revaluation Reserve on Investment in Govt. Securities 12 27 90 207 43
Retained Profit (Loss) (1454) 498 449 74 277
Total Equity 717 2,594 1,572 1,144 642
Total Deposits29,243 29,242 25,221 20,633 16,628 14,681
Core Deposit 9,932 9,255 8,505 7,357 7,209
i. Savings Deposit 8,926 8,532 8,013 6,966 6,486
ii. Deposit Pension Scheme 127 133 131 125 127
iii. Agrani Bank Pension Scheme 71 68 66 136 567
iv. Agrani Bank Bishesh Shanchay Scheme 808 522 295 130 29
Total Loans and Advances 21,266 19,409 16,326 12,224 11,336
Interest Suspense and Penal Interest 735 602 579 691 672
Provision for Loans and Advances 3,466 1,235 1,064 1,187 1,153
Net Loans and Advances 17,065 17,572 14,683 10,345 9,511
Net Investments 8,921 8,376 4,264 4,089 2,933
Fixed Assets 1,138 1,123 544 288 253
Total Assets 37,872 34,882 26,485 21,406 18,732
Net Current Assets 4,823 5,859 5,960 4,798 (6,854)
Operating Results
Total Income 3,700 3,301 2,402 1,636 1,498
Total Expenditure 2,693 1,827 1,316 992 865
Operating Profit before Amortization, Provision & Tax 1,007 1,474 1,086 644 633
Amortization of Valuation Adjustment 133 133 133 133 133
Provision during the year 2,738 607 312 185 211
Provision for Tax (2) 484 289 190 24
Net Profit (loss) after Amortization, Provision & Tax (1,862) 250 352 136 265
Financial Ratios
Earnings per share (187.84) 25.22 46.47 24.80 106.52
Cost of Fund in percentage 9.97 7.69 7.42 6.86 6.65
Return on Equity in percentage (259.94) 9.64 22.38 53.75 41.28
Return on Assets in percentage (4.92) 0.72 1.33 0.63 1.41
Net Interest Margin in percentage 1.61 3.83 6.25 4.61 4.24
Average Yield on Loan in percent (performing loan) 13.86 11.99 11.19 11.04 10.38
Loans as percentage of Deposit (AD Ratio) 72.72 76.95 79.13 73.51 77.21
Total Classified Loans to Total Loans in percentage 25.30 11.07 12.88 19.42 22.48
Net Classified Loans to Net Loans in % (including staff loan) 4.22 3.44 4.69 4.79 7.61
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
Other Key Operational Data

Forex Business 37,482 44,869 30,332 17,801 21,175
i. Import 16,963 26,877 16,792 7,753 10,952
ii. Export 8,838 9,310 6,443 4,461 4,954
iii. Remittance 11,681 8,682 7,097 5,587 5,269
Guarantee Business 515 442 527 160 112
Branches 889 876 867 867 867
Employees 13,890 12,085 11,900 11,443 10,988
NOSTRO A/C with Foreign Banks 43 43 38 39 39
Exchange Houses (Remittance) 52 52 41 35 31
Foreign Correspondents 429 419 419 383 383
Subsidiary Companies 6 4 4 2 2

Graphical Presentation
of Performance
Operating Profit Crore Taka
1,474
1,086
1,007
633
644
2008 2009 2010 2011 2012
Net Asset Value Per Share Taka

288
288
258
230
72
2008 2009 2010 2011 2012
Deposit Crore Taka
29,243
25,221
20,633
16,628
14,681
2008 2009 2010 2011 2012
Net Loans and Advances Crore Taka

17,572
17,065
14,683
10,345
9,511
2008 2009 2010 2011 2012
22
Graphical Presentation
of Performance
Shareholders’ Equity Crore Taka
2,594
1,572
1,144
717
642
2008 2009 2010 2011 2012
Cost to Income Ratio (%)

72.78
60.63
57.54
54.77
55.34
2008 2009 2010 2011 2012
Non-Interest Income Crore Taka
1,311
1,058
1,002
624
543
2008 2009 2010 2011 2012
Non-Performing Assets Crore Taka

5,380
2,549
2,374
2,149
2,102
2008 2009 2010 2011 2012

Major Achievements
in 2012
Shareholders’ Equity stood at Tk. 717 crore at the end of 2012.
Paid-up capital increased to Tk. 991.29 crore in 2012 from Tk. 901 crore in 2011.
Foreign remittance increased to Tk. 11,681 crore in 2012 from

Tk. 8,682 crore in 2011.
Operating profit stood at Tk. 1,007 crore at the end of 2012.
Investment increased to Tk. 9,242 crore in 2012 from

Tk. 8,533 crore in 2011.
Return on Investment increased 8.70 percent in

2012 from 6.12 percent in 2011.
Loans and Advances increased to Tk. 21,266

crore in 2012 from Tk. 19,409 crore in 2011.
Credit deposit ratio reduced to

72.72 percent in 2012 from 76.95
percent in 2011.
1 Chief Security Officer, 9

Principal Officers, 1,447 Senior
Officers and 569 Officers were
recruited in the year 2012.
24
Chairman’s
Message

26
Highlights of
2012
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.
We are strengthening our supervision

as it is the main instrument
for building of trust in banking.
30
such industries as have Effluent Treatment Plants (ETPs)
and other environment friendly measures put in place.
ABL also provides small loan on bio-gas and solar power
plants so that the practice of pollution free investment
goes up, making the planet suitable for our next
generation to live on.

Shareholders’
Information
Distribution of Shares Number of Shares

31 December 2012 31 December 2011
Government of Bangladesh 9,91,29,392 9,01,17,628
Directors 12 12
General Public - -
Total 9,91,29,404 9, 01,17,640
Shares held by Directors
Sl. Particulars Status Share Closing Position Change

No.
1 Khondoker Bazlul Hoque, PhD Chairman 1 1 0%
2 Arastoo Khan Director 1 1 0%
3 A.K. Gulam Kibria, FCA Director 1 1 0%
4 Engineer Md. Abdus Sabur Director 1 1 0%
5 K.M.N. Manjurul Hoque Lablu Director 1 1 0%
6 Niaz Rahim Director 1 1 0%
7 Advocate Balaram Podder Director 1 1 0%
8 Prof. Dr. Md. Abdur Rouf Sardar Director 1 1 0%
9 Shameem Ahsan Director 1 1 0%
10 Md. Altaf Hossain Molla Director 1 1 0%
11 A. B. M. Kamarul Islam Director 1 1 0%
12 Hasina Newaaz Director 1 1 0%
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
The First Annual

General Meeting of ABL
held on 14 August 2008
The Second Annual

held on 17 August 2009
The Third Annual

held on 29 April 2010

Annual
General Meetings
The Fourth Annual

held on 30 April 2011
The Fifth Annual

held on 26 July 2012
Signing of Accounts 2012

by the Directors of ABL
as on 30 June 2013
34
Financial
Highlights
Performance during the year 2012 2011 Change

Interest revenue 2,389.48 2,243.47 6.51%
Interest cost 1,991.03 1,196.60 66.39%
Net interest revenue 398.27 1,046.87 (61.95%)
Income from investment 804.41 522.65 53.91%
Other operating revenue 506.36 535.15 (0.54%)
Total operating revenue 1,709.04 2,104.67 (18.80%)
Salary & allowances 484.07 445.23 8.72%
Other operating cost 218.23 185.18 17.85%
Total operating cost 702.30 630.41 11.41%
Profit before amortization, provision and tax 1,006.74 1,474.26 (31.71%)
Amortization ( valuation adjustment) 132.95 132.95 -
Provision for loans and advances 2,488.80 436.50 470.17%
Other provision 249.26 170.31 46.36%
Profit before tax (1,864.27) 734.50 (353.81%)
Provision for tax (2.21) 484.50 (00.46%)
Net profit after tax (1,862.06) 249.99 (844.85%)
At the end of the year 2012 2011 Change

Paid up capital 991.29 901.18 10.00%
Total shareholders’ equity 716.35 2,594.26 (72.38%)
Deposits 29,242.92 25,220.83 15.95%
Total contingent liabilities and commitments 11,241.87 11,339.28 (0.86%)
Loans and advances 21,266.30 19,408.56 9.57%
Amount of classified loans 5,380.13 2,148.85 150.37%
Provision kept against classified loans 3,212.03 942.14 240.93%
Investments 9,241.98 8,533.13 8.31%
Interest earning assets 19,927.09 18,511.97 7.64%
Non interest earning assets 17,944.55 16,370.10 9.62%
Fixed assets 1,138.07 1,122.67 1.37%
Total assets 37,871.64 34,882.07 8.57%

Key
Ratios
Profitability and performance ratios

SI. No. Particulars 2012 2011
1 Net profit ratio (50.32%) 7.57%

2 Cost to income ratio 72.78% 55.34%
3 Return on assets (4.92%) 0.72%
4 Return on Equity (After amortization, provision & tax) (259.94%) 9.64%
5 Non interest expenses to total assets 1.85% 1.81%
6 Non-interest income to total assets 3.46% 3.03%
7 Interest margin to total assets 1.05% 3.00%
8 Earnings per share (187.84) 25.22
9 Net asset value per share (Tk.) 72 288
10 Cost of fund 9.97% 7.69%
11 Return on investment 8.70% 6.12%
At the end of the year

SI. No. Particulars 2012 2011
1 Current ratio 1.60 1.67
2 Debt to total assets ratio 0.98 0.93
3 Loans & advances to deposit ratio 72.72% 76.95%
4 Loans & advances to total assets ratio 56.15% 55.64%
5 Provision to total loans & advances 16.30% 6.36%
Dividend ratios
SI. No. 2012 2011
1 Stock dividend - 10%
Capital adequacy ratios

SI. No. 2012 2011
1 Capital adequacy ratio (6.15%) 10.99%
i. Tier I Capital (6.15%) 7.88%

ii.Tier II Capital - 3.11%
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
Deposit Mix of 2012 (%) Advance Deposit Ratio (%)
Fixed Deposits Savings Bank
79.13
54.07 Deposits
77.21
76.95
73.51
72.72
30.53
Current and other Bills Payable

Deposits 13.80 1.60
2008 2009 2010 2011 2012
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
2008 2009 2010 2011 2012
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
2008 2009 2010 2011 2012

st
d
ve
s&
er
xe
i
qu
In
th
Fi
an
Li
O
Lo

Graphical Presentation of
Key Financial Information
Fixed Assets Growth Crore Taka
1,123
1,138
544
288
253
2008 2009 2010 2011 2012

Capital Growth Crore Taka
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.
Capital Adequacy as per BASEL-II

Minimum Capital Requirement (MCR) under Risk Based Capital (Basel-II) Taka 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)*100 (6.15%) 6.48%
D. Core Capital to RWA (A1 / B)*100 (6.15%) 3.37%
E. Supplementary Capital to RWA (A2 / B)*100 - 3.11%
F. Minimum Capital Requirement (9% of RWA) 2,145.53 2,141.13
G. Capital Surplus / (Shortfall) (3,465.07) 753.68
Eligible Capital
Tier-1 (Core Capital)
Fully Paid-up Capital 991.29 901.18
Statutory Reserve 413.98 413.98
General Reserve 0.50 0.50
Retained Earnings (1,454.35) 497.83
Sub-Total: (48.58) 1,813.49
Deductions:
Valuation Adjustment (Intangible assets) 664.84 -
Investments in Subsidiaries which are not consolidated 130.77 125.77
Benefit of Deferred Tax Assets 475.35 -
Total Eligible Tier-1 Capital (1,319.54) 1,687.72
Tier-2 (Supplementary Capital)
General Provision (UC + SMA + Off B/S exposure+ 3% Consumer Finance) 366.47 400.85
Assets Revaluation Reserves up to 50% 376.60 376.92
Revaluation Reserve for Approved Securities up to 50% 5.86 13.47
Revaluation Reserve for Equity Instrument up to 10% - -
Other(Balance of Exchange Equalization A/C) 2.63 -
Sub-Total 751.56 791.24
Deductions: Investments in Subsidiaries which are not consolidated 130.77 125.77
Total Eligible Tier-2 Capital 620.79 665.47
Tier-3 Supplementary Capital - -
Total Supplementary (Tier 2+ Tier 3) Capital - 665.47
Total Eligible Capital (Tier 1+ Tier 2+ Tier 3) Capital (1,319.54) 2,353.19

Products and
Services
1. Deposit 2. Loan & Advance
a) Taka Account a) Continuous Loan
i) Current Deposit (CD) i) Cash Credit (Hypo)
ii) Savings Deposit (SB) ii) Cash Credit (Pledge)
iii) Fixed Deposit (FDR) iii) Secured Overdraft (SOD)
iv) Special Notice Time Deposit (SNTD)

b) Term Loan
v) Non Resident Special Taka Account (NRTA)
i) Inland Bill Purchase (IBP)
vi) NR Investors Taka Account (NRIT)
ii) Export Cash Credit
vii) Agrani Bank Pension Scheme (APS)
iii) Industrial Credit (IC)
viii) Agrani Bank Bishesh Shanchay Scheme (ABS)
iv) Housing Loan (General & Commercial)
ix) Agrani Double Benefit Scheme (ADBS)
v) Consumer Credit
x) Monthly Deposit Scheme (MDS)
vi) Loan for Overseas Employment
xi) Monthly Income Scheme (MIS)
vii) Weavers’ Credit
xii) Students Savings A/C (School Banking)
c) Rural & Agro Credit
xiii) Small Life Insurance Policy Holders A/C
i) Crop Loan
xiv) Farmers A/C
ii) Fishery Loan
xv) Freedom Fighters A/C
iii) Animal Husbandry Loan
xvi) Other Beneficiaries A/C under Social
Securities Program iv) Agri Machinary Loan
v) Rural Transport Loan

b) Foreign Currency Account
vi) Swanirvar Loan
i) Foreign Currency (FC) A/C
vii) Poverty Alleviation Loan
ii) Non Resident Foreign Currency Deposit (NFCD) A/C
iii) Resident Foreign Currency Deposit (RFCD) A/C d) Small and Medium Enterprise Loan
iv) Exporters Retention Quota (ERQ) A/C i) Service Sector Loan
40
Products and
Services
ii) Trading Sector Loan viii) Reverse Repo
iii) Manufacturing Sector Loan ix) Custodian Services
x) Other Investments
e) Import Finance
i) Loan against Imported Merchandise (LIM) b) Foreign Exchange Market
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
vi) Secured Overdraft (SOD) i) Letter of Credit - Sight
ii) Letter of Credit - Usance

3. Treasury
iii) Back to Back L/C
a) Money Market
5. Letter of Guarantee
i) Maintaining CRR and SLR
i) Advance Payment Guarantee
ii) Call Money Transaction
ii) Bid Bond
iii) Term Placement (FDR)
iii) Performance Guarantee
iv) Treasury Bills
iv) Shipping Guarantee
v) Treasury Bonds
v) Guarantee - Others
vi) Secondary Trading of Govt. Securities
vi) Standby Credit
vii) Repo

Products and
Services
6. Other Foreign Exchange Services viii) Online Deposit to Accounts
i) Documentary Bill Collection

9. Value Added Service
ii) Advanced Payment for Import & Export
i) Locker Service
iii) Foreign Remittance (Incoming & Outgoing)
ii) Utility Bill Collection
iv) Foreign Currency Endorsement against
Passport 10. Merchant Banking Service
v) Issuance of Draft, TT i) Issue Management
vi) Collection of Draft, Cheque, TC ii) Underwriting
vii) Opening of Student File, Medical File iii) Portfolio Management
7. Cash Service 11. Islamic Banking Service

i) ATM Service a) Deposit
ii) Cheque Encashment i) Al Wadiah Current A/C
iii) Foreign Currency ii) Mudaraba Savings A/C
8. Fund Transfer iii) Mudaraba STD A/C
i) Inter-Branch Money Transfer iv) Mudaraba Term Deposit
ii) SWIFT v) Mudaraba Special Scheme Deposit
iii) Telegraphic Transfer (TT)

b) Investment
iv) Issuing Foreign Draft
i) Bai Murabaha (Pledge)
v) Encashing Foreign Draft
ii) Bai Muazzal (Hypo)
vi) Bangladesh Electronic Fund Transfer
iii) Higher Purchase Shirkatul Meilk
Network (BEFTN)
iv) Bai Salam
vii) Bangladesh Automated Clearing
House (BACH)
42
Risk
Management

Risk
Management
Risk is defined as probability or threat of a damage, injury, Risk Management Process
liability, loss or other negative occurrence that is caused Banking business is mainly a business of lending and
by external or internal vulnerabilities and that may be borrowing. It collects deposits from the depositors by
neutralized through preemptive action. It is unexpected paying different rate to different deposit products and
and negative outcome of an institute or an individual. So, invests as loans and advances to the borrowers at higher
for every large institute like Banking, it is a must to manage rate. The spread between the two is Bank’s profit. So, a
risk for its better sustainability. ABL is one of the largest risk always inherits from the counterparty. Sometimes the
SCBs in the country and it has a number of subsidiary borrowers are unwilling to pay back money they borrowed.
companies at home and abroad. It has a large exposure So, necessary steps are being taken prior to risky events.
of assets and liabilities shown on balance sheet and other These risks can be measured financially in line with
related accounting papers. So the prime objective of its international standard. Capital is sized for every probable
management is to safeguard its assets and comply with risk. ABL takes well-calculated business risks to safeguard
the obligations or liabilities from any arisen risk during its its assets and profitability as per the adopted guidelines of
operation. Many types of risks may arise in banking and BB. The board of directors is the highest authority to approve
NBFIs sectors which widely discussed and hedged are as the policies and process submitted by the management.
follows: After approval, the management implements through
different divisions of head office and branches in field level.
1. Credit Risk ABL has (i) Audit Committee (ii) Management Committee
2. Asset-Liability Management Risk (MANCOM) (iii) Credit Committee (CRECOM) (iv) Asset-
3. Money Laundering Risk Liability Management Committee (ALCOM) to monitor and
review activities relating to risks and development.
4. Foreign Exchange Risk
5. ICC Risk 1. Credit Risk
6. ICT Risk Risk arising from noncompliance of commitment of
the counterparty or the borrower is defined as Credit
Strategy of Risk Management risk. Lending with terms and conditions in line with
Risk is inherent in every business. Today’s global and regulatory body’s directives and government’s policies
dynamic business entities are facing various dimensions is the main business of a bank. ABL had a sophisticated
in the field of risks. So before introducing a new product or risk management system from the very beginning of its
extension of existing products it is inseparable to use tools operations. But at today’s global and domestic socio-
to mitigate future risks. Considering various types of risks economical scenario it has got a new dimensional
ABL has adopted strong and integrated risk management nimbleness. So before sanctioning a credit, it is a must to
strategies in line with its regulatory bodies’ directives and analyze future risk. For this, ABL has a dedicated team of
Bangladesh Government’s policies. ABL is a state-owned officers and executives to assess the future (simple and
entity. So it has a direct accountability to the mass people complicated) uneven situation that may hinder the return
and ABL tries its best to comply with the commitment by: of lending with its spread. To overcome this adversity, ABL
has a rigorous policies and procedures on various key
• Growth of business risk factors regarding initiation to the settlement of a loan
• Risk adjusted performance measurement for the safeguard of Bank’s assets. Bank selects quality
borrowers who have the ability or potentiality of willingness
• Consistency of earnings to honor all credit commitments in stipulated time. The
• Quality and transparency of management potentiality of the project is carefully justified in this regard.
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.

ABL is committed to the highest standards of Anti- Money accountability both at Head Office and at Branch level in
Laundering (AML) compliance as per the provisions of the line with Bangladesh Bank’s instruction.
prevailing Money Laundering Prevention Act, the guidance
notes of Bangladesh Bank and other concern authorities. 4. Foreign Exchange Risk
As part of money laundering risk management, the Bank
Managing foreign exchange risk is a fundamental
carries out the following activities.
component in the safe and sound management of all
institutions having exposures in foreign currencies. Foreign
i) KYC system: ABL has been maintaining a unique KYC exchange risk is defined as the risk that a bank may suffer
system under the following elements: losses as a result of adverse exchange rate movements
during a period in which it has an open position either
a) Customer Acceptance Policy: ABL has a clear spot or forward currency. Investors or businesses face an
customer acceptance policy with explicit criteria exchange rate risk when they have assets or operations
to ensure that customer/entity is using their real across national borders or if they have loans or borrowings
name and not involved in terrorism or other illegal in a foreign currency.
activities.
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.

d) Market Risk risk addresses to the credit risk and liquidity risk elements.
The market risk which may derive from loss of earnings Treasury transactions, trading book items (deals) and
due to change in the interest rate, foreign exchange rate capital market dealings are a mix of credit and liquidity risk.
etc. The bank poses to the risk when it fulfills its contractual
obligations (payment or delivery), but the counterparty fails
or defaults to do the same.
e) Credit Concentration Risk
Credit concentration risk may arise from credit exposures h) Environmental and Climate Change Risk
in the same economic or geographic sector and/or credit
concentration in dependent industries which the Bank Environmental and climate change risk refers to the
addresses through proper evaluation. Credit Concentration uncertainty or probability of losses that originates from any
of Agrani Bank Limited is used in a broader sense and adverse environmental or climate change events (natural
includes the following: or man made) and/or the non-compliance of the prevailing
national environmental regulations. It can hamper the
i) Concentration by economic purpose (Sector), business stability of the borrowers in respect to both-
profitability and reputation. To avoid this risk bank takes
ii) Concentration by size of Loan Accounts/ in the cautionary initiatives before the disbursement of loan.
name of a single borrower,
iii) Concentration by a legally connected group of i) Residual Risk
borrowers,
It refers to the risk arising from the collateral taken and
iv) Concentration by region (Geographical), other forms of shielding against credit risks. These risks
v) Concentration by portfolio type (Granularity) comprise legal, documentation, value of collateral,
insurance risk etc. For example, inability to seize collateral
f) Interest Rate Risk at the opportune moment, guarantor refusing his obligation
or ineffectiveness of untested documentation might turn to
Interest rate risk is the current or potential risk to earnings
potential non-performance of these assets. ABL is aware
and capital arising from adverse movements in interest.
of residual risk and takes legal or practical steps for its
This is in respect of the banking book only from pillar 2
management.
(SRP) contexts. Significantly reduced earnings can pose
a threat to capital adequacy. After volatility of earnings the
Bank analyses to overcome interest rate risk. j) Equity Price Risk
Equity risk is defined as losses due to change in market
g) Settlement Risk price of the equity held. To measure and identify the risk,
Settlement risk arises when an executed transaction is mark-to-market valuation of the share investment portfolios
not settled as the standard settlement system. Settlement is done by the Bank.
48
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.
The Basel II principle stands on the following three pillars:
Pillar-1 : Minimum Capital Requirement (MCR)
Minimum Capital Requirement (MCR) that needs to be maintained by banks to cover credit, market and operational risk
as a regulatory requirement.
Pillar-2 : Supervisory Review Process (SRP)

SRP basically deals with other risks faced by a bank not covered in pillar-1. The key principle of SRP is that banks have
a process for assessing overall capital adequacy in relation to their risk profile and a strategy for maintaining their capital
at an adequate level. The assessment of adequate capital would be the outcome of the dialogue to be held between the
bank’s SRP and Bangladesh Bank’s SREP team.
Pillar-3: Market Discipline

To make public disclosure of information on the bank’s risk profiles, capital adequacy and risk management processes.
The objective of introducing Market Discipline in the revised capital framework is to establish more transparent and more
disciplined financial market so that stakeholders can assess the position of a bank in regard to holding assets and to
identify the risks relating to the assets and capital adequacy to meet probable loss of assets.
3 pillars of Basel II
Pillar 1 Pillar 2 Pillar 3
Minimum Capital Supervisory Review Market

Requirement Process Discipline
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
Basic Indicator Standardized Advanced

Measurement
Approach Approach Approach
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:
• Strategies and processes

• the structure and organization of the relevant risk management function.
• the scope and nature of risk reporting and/or measurement systems.
• Policies, strategies and processes for monitoring the continuing effectiveness of hedging/mitigation risk.
The following components set out as the disclosure requirements:
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:
1) That is fully consolidated.

ABL’s Minimum Capital Requirement (MCR) has been arrived at both on Solo & Consolidated Basis.
2) The following items are given a deduction treatment.

a) Remaining value of Valuation Adjustment
b) Benefit of Deferred Tax Assets
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.
i) Agrani Equity & Investment Limited

Agrani Bank Limited is the parent company of Agrani Equity & Investment Ltd. which is established to
perform merchant banking activities in Bangladesh.
Name : Agrani Equity & Investment Ltd.

Date of incorporation : 16.03.2010
Date of Commencement : 16.03.2010
Authorized Capital : Tk. 500,00,00,000
Paid up Capital : Tk. 200,00,00,000
Ownership Interest in Capital : Tk. 200,00,00,000 (100%)

ii) Agrani SME Financing Company Limited
Agrani Bank Limited is the parent company of Agrani SME Financing Company Limited which is
established to perform retail credit activities in Bangladesh.
Name : Agrani SME Financing Company Limited

Authorized Capital : Tk. 500,00,00,000
Paid up Capital : Tk. 50,00,00,000
Ownership Interest in Capital : Tk. 50,00,00,000 (100%)
iii) Agrani Exchange House Private Limited, Singapore

Agrani Bank Limited is the parent company of Agrani Exchange House Private Limited, Singapore
which is established to perform activities as remittance house.
Name : Agrani Exchange House Private Limited, Singapore

Authorized Capital : SGD 2,00,000
Paid up Capital : SGD 2,00,000
Ownership Interest in Capital : SGD 2,00,000 (100%)
iv) Agrani Remittance House Sdn. Bhd., Malaysia

Agrani Bank Limited is the parent company of Agrani Remittance House Sdn. Bhd., Malaysia which
is established to perform activities as remittance house.
Name : Agrani Remittance House Sdn. Bhd., Malaysia

Authorized Capital : MYR 10,00,000
Paid up Capital : MYR 10,00,000
Ownership Interest in Capital : MYR 10,00,000 (100%)
v) Agrani Exchange Co. (Australia) Pty. Limited

Agrani Bank Limited is the parent company of Agrani Exchange Co. (Australia) Pty. Limited which is
established to perform activities as remittance house.
Name : Agrani Exchange Co. (Australia) Pty. Limited

Date of Commencement : -
Authorized Capital : AUD 5,80,000
Paid up Capital : AUD 1,61,900
Ownership Interest in Capital : AUD 1,61,900 (100% owned by Agrani Bank Limited)
vi) Agrani Remittance House Canada, Inc.

Agrani Bank Limited is the parent company of Agrani Remittance House Canada, Inc. which is
established to perform activities as remittance house.
Name : Agrani Remittance House Canada, Inc.

Date of Commencement : -
Authorized Capital : CAD 4,50,000
Paid up Capital : CAD 1,00,000
Ownership Interest in Capital : CAD 1,00,000 (100% owned by Agrani Bank Limited)
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.
Yes, there are.
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:
i) Agrani Equity & Investment Ltd.

ii) Agrani SME Financing Company Ltd.
iii) Agrani Exchange House Private Limited, Singapore.
iv) Agrani Remittance House Sdn, Bhd, Malaysia.
v) Agrani Exchange Co. (Australia) Pvt. Limited
vi) Agrani Remittance House Canada, Inc.
2. Capital structure
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
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)

(Taka in crore)
Solo Consolidated
b) Capital requirement for Credit Risk 1,632.46 1621.24
c) Capital requirement for Market Risk 229.88 281.75
d) Capital requirement for Operational Risk 283.19 285.66
e) Total and Tier- 1 capital ratio 1.00 : (.62) 1.00: (.56)
• For the consolidated group and Yes
• For stand alone Yes
4. Credit Risk
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.
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.
Balance sheet exposure

(Taka in crore)
Region Urban Rural Total
Dhaka Region 12,142.28 247.80 12,390.08
Chittagong Region 3,589.80 36.26 3,626.06
Khulna Region 714.92 213.55 928.47
Rajshahi Region 679.14 277.40 956.54
Barisal Region 472.72 356.61 829.33
Sylhet Region 164.87 54.96 219.83
Rangpur Region 451.63 243.18 694.81
Mymensing Region 377.39 212.28 589.67
Comilla Region 428.61 183.69 612.30
Faridpur Region 335.37 83.84 419.21
Sub Total 19,356.73 1,909.57 21,266.30
Off-Balance sheet exposure

Region (Taka in crore)
Dhaka Region 10,466.51
Chittagong Region 387.98
Khulna Region 95.33
Rajshahi Region 110.22
Barisal Region 95.49
Sylhet Region 7.05
Rangpur Region 42.15
Mymensing Region 7.40
Comilla Region 18.76
Faridpur Region 10.98
Total 11,241.87
d) Industry or counterparty type distribution of exposures, broken down by major types of credit exposure.
Funded (Taka in crore)

Agriculture & Fishery 864.64
Jute & Jute Goods 630.27
Transport, Storage & Communication 150.03
Ship Breaking 219.71
Textile & Readymade Garments 2,675.42
Food & Allied Industry 863.27
Construction & Engineering 185.05
Pharmaceuticals & Chemicals 298.07
Leather Sector 364.10
Power Sector 1,180.42
Professional & Services 182.27
Housing Services 572.12
Wholesale/ Retail Trading 2,152.78
Personal (Staff & other personal Loan) 1,569.16
Others 9,358.99
Total 21,266.30

Non Funded: Yet to be made
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
Non Funded: As yet not Available.
f) By major industry or counterparty type:
• 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
g) Gross Non Performing Assets (NPAs) : TK. 5380.13 crore.
Non Performing Assets (NPAs) to Outstanding Loans & advances: 0.25 : 1.00
Movement of Non Performing Assets (NPAs):

(Taka in crore)
Opening balance 2,148.85
Additions 4,074.46
Reductions (8,43.18)
Closing balance 5,380.13
Movement of specific provisions for NPAs:

(Taka In crore)
Opening balance 942.14
Provisions made during the period 2,527.61
Recoveries of amount previously Written-off 1.02
Provision add back during the year -
Less: Written-off (258.74)
Closing balance 3,212.03
5. Equities: Disclosures for Banking Book Positions
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.
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.
6. Interest rate risk in the banking book (IRRBB)
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.

7. Market Risk
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.
Methods used to measure Market risk

The Bank uses the standardized (Rule Based) approach to calculate market risk for trading book exposures
Market Risk Management system

Decision taken in the monthly meeting of Core Risk Management and ALCOM is an important tool for managing market
risk. ALCOM is in place in the bank to administer the system.
Policies and processes for mitigating market risk

The only mitigation tool that the Bank uses is the ‘Marking to Market’ for mitigating market risk. Besides, a set risk/loss
tolerance level is in place to mitigate market risk.
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
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.
Performance gap of executives and staffs:

Performance goals are most often attained by executives and staff with a few exception.
Potential external events:

ABL, as a state owned commercial bank, is exposed to ‘directed loans’ as the major external event.
Policies and processes for mitigating operational risk:

The ABL manages this risk through a chain based processes which are documented, authorized and independent.
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.
Approach for calculating capital charge for operational risk:

The Bank uses the Basic Indicator Approach to calculate the capital requirement of its operational risk.
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

districts of Rangpur, Dinajpur, Thakurgaon, relentlessly since independence. In several times
Gaibandha, Kurigram, Panchagarh, Mymenshingh the team defeated renowned clubs of the country
and Pabna. like Mohamadan, Abahony, Brothers Union etc.
The bank has also a cricket team of its own that
Concern for the Environment has been participating in the first division cricket
In the year 2012, the bank contributed 2.00 lac to league since independence. The team frequently
‘Make Rajshahi Green Project’ and Tk. 5.00 lac to succeeds to keep its ranking position from three to
BAPA (Bangladesh Paribesh Andolon) for five in the league. A number of cricketers and
International Conference on Environment in South footballers are playing in the national and
Asia. Today our planet is exposed to a severe international levels who were once member of ABL
environmental catastrophe than ever before. ABL’s sports team.
Dr. Khondoker Bazlul Haque, Chairman of ABL, handing over an Ambulence to the Vice Chancellor of BUET
corporate social responsibility contributes Arts and Culture

generously to the development of Green Banking. Agrani Bank Limited is always committed to the
Protection and thus nourishing the environment is upliftment of Bengali heritage, art, culture and
part of ABL’s investment principle. Environmental literature. The bank donated Tk. 30 lac for ongoing
issues are taken into account while the bank is
construction of liberation war museum. Besides,
assessing credit proposal for the industrial
the bank also donated Tk.18.45 lac to other related
projects. As a humble effort to reduce
projects/programs.
environmental pollution, the bank is financing CNG
refueling stations. Besides, most of office vehicles
Customers and Well-wishers
of the bank have already been converted to CNG
ABL feels proud to provide services to the valued
fueling system.
costomers without any hidden cost. The bank
Sports serves to customers as a business partner. The
In the year 2012, the Bank has donated Tk. 21.15 bank sincerely strives to improve business
lac to 8 beneficiaries of different football and hokey relationship with the customers for common
clubs and tournaments for the promotion of games benefit. By optimising financial performance at the
and sports. ABL has its own football team that has least cost the bank protects the interest of
been participating in the national football league customers. The bank is maintaining a good
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

ABL donated a Bus to the Bangabandhu Sheikh Mujibur Rahman Science and Technology University, Gopalgonj
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‡ì cÖwZ
to the Shareholders cwiPvjK‡ì cÖwZ‡e`b
Bismillahir Rahmanir Rahim wemwgjvwni ivngvwbi ivwng
Respected Shareholders m¤§vwbZ †kqvi‡nvìvie„›`

Assalamu Alaikum Avm&mvjvgy AvjvBKzg
On behalf of the Board of Directors, I am indeed AMÖYx e¨vsK wjwg‡UW Gi 2012 mv‡ji wbixw¶Z wnmve
delighted to present before you the sixth Annual weeiYx Ges lô evwl©K cÖwZ‡e`b cwiPvjbv cwil‡ì c¶
Report of Agrani Bank Limited. The report †_‡K Avcbv‡ì mvg‡b Dc¯’vcb Ki‡Z †c‡i Avb›`‡eva
evaluates and analyzes bank’s overall operational KiwQ| G cÖwZ‡e`‡b Avcbviv 2011 mv‡ji mv‡_ 2012
performance of 2012 compared to that of 2011. I mv‡j e¨vs‡Ki GKwU Zzjbvg~jK wPÎmn 2012 mv‡ji mvwe©K
would request you to read the information and
eëmvMZ cwiw¯’wZ Ges cwiPvjbv cwil‡ì Kg©Kv‡Ûi
analyses in conjunction with the audited financial
g~j¨vqb I we‡kølY †`L‡Z cv‡eb| †h mg¯Í Z_¨ Ges
statements presented herewith. The report also
presents an overview of the global economic
we‡kølY G‡Z mwbœ‡ewkZ n‡q‡Q Zv †ckK…Z Avw_©K weeiYxi
scenario and the performance of Bangladesh m‡½ wgwj‡q covi Rb¨ Aby‡iva KiwQ| G cÖwZ‡e`‡b wek¦
Economy to put in perspective the bank’s A_©bxwZ Ges evsjv‡`‡ki A_©bxwZi †cÖ¶vc‡U e¨vs‡Ki
performance. GKwU msw¶ß A_P mvwe©K PvjwPÎ Lyu‡R cvIqv hv‡e|
Global Economic Scenario wek¦ A_©‰bwZK cwiw¯’wZ

Immediately after the recovery from economic 2010 mv‡j wek¦ A_©bxwZ g›`v †_‡K †ewi‡q Avmvi ci
crisis in 2010, the global economy is again facing BD‡iv AÂ‡ji K‡qKwU †`‡k mve©‡fŠg FY (sovereign
challenges as the recession re-emerged in the first
debt) mgm¨vi we¯Ívi Ges hy³iv‡óªi mve©‡fŠg FYgv‡bi
half of FY 2011-12 due to sovereign debt crisis in
several euro-zone economies and economic Aebq‡b g›`v cybivwefv©‡ei †h k¼v m„wó n‡qwQj Zv wKQyUv
instability in the USA. However, steps taken to KvUv‡bv m¤¢e n‡q‡Q| 2011 mv‡ji wØZxqv‡a© hy³iv‡óªi
reinvigorate the USA economy and joint efforts to A_©bxwZi Pv½vfve Ges BD‡iv AÂ‡ji A_©bxwZ‡K cybivq
protect euro economies from further effect of
g›`vi cÖfve †_‡K i¶vi Rb¨ †h mw¤§wjZ cÖ‡Póv MÖnY Kiv
recession have slightly watered down the effect in
the second half of 2011. Despite some nq, Zvi d‡j g›`vi cÖfve wKQyUv cÖkwgZ n‡jI wek¦
deceleration in the growth of the developed A_©bxwZ‡Z GLbI wb¤œgyLx SzuwK i‡q‡Q| Z‡e DbœZ
economies and slight slowdown in economic A_©bxwZi †`kmg~‡n cÖe„w×i MwZ kø_ avivq n‡jI weKvkgvb
growth of emerging and developing countries
I Dbœqbkxj A_©bxwZi AwaKvsk †`‡ki A_©‰bwZK cÖe„w×
compared to the growth momentum in 2011;
economic growth of emerging and developing 2011-Gi Zzjbvq mvgvb¨ n«vm †c‡jI Zzjbvg~jKfv‡e fvj
countries remains fairly strong. Ae¯’v‡b i‡q‡Q|
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 AÂ‡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 AÂ‡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 AÂ‡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|
Impressive Track Record of Bangladesh evsjv‡`‡ki A_©bxwZi hyMvšÍKvix AMÖMwZ

Economy
Bangladesh’s track record of achievements, in 2021 mv‡ji g‡a¨ GKwU ga¨g Av‡qi †`‡k cwiYZ nIqvi
different sectors and according to various j‡¶¨ evsjv‡`‡ki µgvMZ Avkve¨ÄK AMÖMwZ mvwaZ n‡”Q
performance indicators, bear evidence that she is
making impressive and encouraging progress hv wewfbœ †m±‡i †`‡ki A_©bxwZi AR©bmg~n Ges mvd‡jï
towards attaining her goal of being a middle m~PK¸‡jv j¶¨ Ki‡j Abyaveb Kiv hvq| weMZ `yB `k‡Ki
income country by 2021. Bangladesh was able to
accelerate her GDP growth from under 4.00 g‡a¨ evsjv‡`k Zvi wRwWwc cÖe„w× 4.00 kZvsk n‡Z 6.00
percent per year to over 6.00 percent within a span kZvs‡k DbœxZ Ki‡Z m¶g n‡q‡Q| GK‡PwUqv mvnvh¨wbf©i
of two decades. Our country has been able to
make commendable transition from a
A_©bxwZ n‡Z evwYR¨wbf©i A_©bxwZ wn‡m‡e iƒcvšÍ‡ii c‡_
predominantly aid-dependent economy to a evsjv‡`k cÖksmbxq DbœwZ jvf K‡i‡Q| eZ©gv‡b cÖwZeQi
trading nation. The combined net foreign
evsjv‡`‡ki ißvwbcY¨ n‡Z cÖvß Avq Ges †iwgU¨vÝ AR©b
exchange earnings from export of goods and
remittance are at present about fifteen times more G `yÕ†qi †gvU cwigvY cÖwZeQi cÖvß †gvU ê‡`wkK
than the aid we receive annually. mvnv‡hï †P‡q cÖvq 15 ¸Y †ewk|
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‡ì 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‡ì 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‡ì A_©bxwZ êwk¦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 êlg¨ `~ixKiY, ¯^v¯’¨
of poverty alleviation, gender parity, and access to †mevi gv‡bvbœqb Ges wk¶vi AMÖMwZmn Ômnmªvã Dbœqb

health and education has received high global j¶gvÎvÕ AR©‡b M„nxZ c`‡¶c mg~n wek¦e¨vcx D”P cÖkswmZ
acclaim. n‡q‡Q|
These aforesaid achievements were possible G AR©b mg~n KZ¸‡jv mw¤§wjZ cÖqv‡mi gva¨‡g m¤¢e
through a combination of factors: supportive
n‡q‡Q h_v- miKv‡ii m¤ú‡ì mycwiKwíZ †hvMvb I
government policies and targeted resource
allocation; the hard work of farmers and workers at mn‡hvwMZvg~jK bxwZgvjv, K…lK‡ì K‡Vvi kÖg Ges †`‡k
home and abroad, contribution of the private
I we‡`‡k Avgv‡ì kÖwgK‡ì AK¬všÍ cwikÖg, †emiKvwi LvZ
sector and our vibrant entrepreneurial class,
proactive role of our non-government actors Ges MwZkxj D‡`¨v³v †kÖYxi Ae`vb, ¶z`ªFY weZiYmn
including in areas of disbursement of micro-credit, †emiKvwi ms¯’v mg~‡ni D‡`¨vMx f‚wgKv, ¶z`ª D‡`¨v³v‡ì
development of micro-enterprises and raising
consciousness about economic and social issues; AMÖMwZ Ges mvgvwRK I A_©‰bwZK wel‡q Rbm‡PZbZv
target support provided by development partners. e„w×, wba©vwiZ cÖK‡í Dbœqb mn‡hvwM‡ì mnvqZv BZ¨vw`|
Macroeconomic Scenario of Bangladesh evsjv‡`‡ki mvgwóK A_©‰bwZK cwiw¯’wZ

Economic Growth A_©‰bwZK cÖe„w×
Although the growth of Bangladesh economy g›`vi ïiæ‡Z 2008-09 mv‡j evsjv‡`‡ki A_©‰bwZK cÖe„w×
slowed down in the context of negative growth in wKQyUv n«vm †c‡jI c‡ii eQ‡iB Zv Ny‡i `vuovq Ges MZ
world trade at the beginning of the global financial
crisis in FY 2008-09, next year this growth
wZb A_©eQ‡i Mo cÖe„w× 6.00 kZvs‡ki Ic‡i _v‡K|
bounced back and average growth remained evsjv‡`k cwimsL¨vb ey¨‡ivi P‚ovšÍ wnmve Abyhvqx
above 6.00 percent in the last three years. 2010-11 A_©eQ‡i wRwWwc cÖe„w× `vuwo‡q‡Q 6.71 kZvsk|
According to BBS, GDP grew to 6.71 percent in FY mvgwqK wnmve Abyhvqx 2011-12 A_©eQ‡i wRwWwc cÖe„w×
2010-11 and the estimated GDP growth rate for FY
cÖv°jb Kiv n‡q‡Q 6.32 kZvsk| K…wl Lv‡Z weMZ `yB eQi
2011-12 is 6.32 percent. However, because of high
base effect induced by more than 5.00 percent 5.00 kZvs‡ki †ewk cÖe„w×i ci eo wfwËi cÖfv‡e (high
growth in agriculture sector during the last two base effect) PjwZ A_©eQ‡i cÖe„w×i nvi wKQyUv Kg‡jI G
years, the growth of FY 2011-12 dipped a little Lv‡Zi cÖe„w× m‡šÍvlRbK| cvkvcvwk wkí Ges †mev Lv‡Zi
which is still satisfactory. Alongside, substantial
D‡jøL‡hvM¨ nv‡i cÖe„w× mvwe©Kfv‡e wRwWwc cÖe„w× AR©‡b
growth in industry and service sector has
contributed to overall GDP growth. In FY2011-12, f‚wgKv †i‡L‡Q| 2011-12 A_©eQ‡i K…wl, wkí I †mev Lv‡Z
growth in agriculture, industry and service sectors cÖe„w× cÖv°jb Kiv n‡q‡Q h_vµ‡g 2.53 kZvsk, 9.47
have estimated to 2.53 percent, 9.47 percent and kZvsk Ges 6.06 kZvsk| 2011-12 A_©eQ‡i gv_vwcQy
6.06 percent respectively. This year GDP and GNI
RvZxq Avq I gv_vwcQy wRwWwc `vuwo‡q‡Q h_vµ‡g 848
per capita stood at US$ 772 and US$ 848 which
were US$ 748 and US$ 816 respectively in the last gvwK©b Wjvi I 772 gvwK©b Wjvi hv c~e©eZx© A_©eQ‡i wQj
fiscal year. h_vµ‡g 816 gvwK©b Wjvi I 748 gvwK©b Wjvi|
Savings and Investment mÂq I wewb‡qvM

Estimated domestic savings slightly increased 2010-11 A_©eQ‡i †`kR mÂq wQj wRwWwcÕi 19.30
from 19.30 percent of GDP in FY 2010-11 to 19.40 kZvsk hv 2011-12 A_©eQ‡i mvgwqK wnmve Abyhvqx e„w×
percent of GDP in FY 2011-12. Investment in FY
2011-12 also showed similar feature with a slight
†c‡q `vuwo‡q‡Q 19.40 kZvs‡k| Ab¨w`‡K 2010-11
increase and stood at 25.40 percent of GDP in FY A_©eQ‡i wewb‡qvM wRwWwcÕi 25.40 kZvs‡k DbœxZ n‡q‡Q|
2011-12 from 25.20 percent of GDP in FY2010-11. Gi g‡a¨ †emiKvwi wewb‡qvM wRwWwcÕi 19.10 kZvsk Ges
Of which the share of private investment stood at
19.10 percent of GDP while that of public
miKvwi wewb‡qvM 6.30 kZvsk| 2011-12 A_©eQ‡i
investment was 6.30 percent in FY 2011-12. In FY †emiKvwi wewb‡qvM wRwWwcÕi 19.50 kZvsk Ges miKvwi
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 eëmvq 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 ùvovq| g~jZt
percent in FY2010-11. Oil and food inflation in AvšÍRv©wZK evRv‡i R¡vjvwb †Zj I Lv`¨ c‡Yï 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 wfwË‡Z
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 ùvwo‡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„w×‡Z f‚wgKv
Satisfactory food production and supply of ivL‡Q| Af¨šÍixY Lv`¨ k‡mï Drcv`b fvj nIqv Ges
essential commodities including demand wbZ¨ cÖ‡qvRbxq c‡Yï mieivn wbwðZKi‡Yi cvkvcvwk
management through Open Market Sale (OMS) of evRvieë¯’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„w×‡Z 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|

Fiscal Situation ivR¯^ cwiw¯’wZ
Revenue Earning ivR¯^ AvniY
A target for revenue receipt was set at Tk.1,18,385 2011-12 A_©eQ‡i ivR¯^ Avni‡Yi ms‡kvwaZ j¶¨gvÎv
crore (12.94 percent of GDP) in FY 2011-12 of wba©viY Kiv nq 1,18,385 †KvwU UvKv (wRwWwcÕi 12.94
which NBR tax revenue accounted for Tk. 91,870 kZvsk)| hvi g‡a¨ GbweAvi Ki ivR¯^ 91,870 †KvwU
crore (10.00 percent of GDP), non-NBR revenue, UvKv (wRwWwcÕi 10.00 kZvsk)| GbweAvi ewnf‚©Z Ki
Tk. 3,915 crore (0.40 percent of GDP) and non-tax ivR¯^ 3,915 †KvwU UvKv (wRwWwcÕi 0.40 kZvsk) Ges Ki
revenue Tk. 22,600 crore (2.47 percent of GDP). ewnf~©Z ivR¯^ 22,600 †KvwU UvKv (wRwWwcÕi 2.47
Against these targets, tax revenue from NBR kZvsk) j¶¨gvÎvi wecix‡Z 2011-12 A_©eQ‡i AvnwiZ
sources stood at Tk. 91,597 crore while revenue n‡q‡Q GbweAvi Ki ivR¯^ 91,597 †KvwU UvKv,
receipts from non-NBR source and non-tax GbweAvi-ewnf~©Z Ki ivR¯^ 3,633 †KvwU UvKv Ges Ki
revenue receipts were Tk. 3,633 crore and Tk. ewnf‚©Z ivR¯^ 18,550 †KvwU UvKv| mvwe©Kfv‡e 2011-12
18,550 core respectively in FY 2011-12. Total
A_© eQ‡i †gvU ivR¯^ AvniY e„w× †c‡q‡Q 19.53 kZvsk ev
revenue receipts increased by 19.53 percent from
1,13,781 †KvwU UvKv, hv MZ 2010-11 A_©eQ‡i wQj
Tk. 95,188 crore in FY 2010-11 to Tk. 1,13,781
crore in FY 2011-12. 95,188 †KvwU UvKv|
Monetary and Financial Sector gy`ªv I Avw_©K LvZ

Following the global financial crisis, monetary PjwZ A_©eQ‡i cwiewZ©Z êwk¦K I Af¨šÍixY cwiw¯’wZi
policy stance was accommodative in FY2010-11 †cÖ¶vc‡U wek¦g›`v-cieZx© mg‡q Af¨šÍixY A_©bxwZ‡Z
which has been adjusted in FY 2011-12 consistent Abym„Z msKzjvbgyLx gy`ªvbxwZ (accomodative monetary
with the changes in the global and domestic
policy)-†Z cÖ‡qvRbxq cwieZ©b Avbv n‡q‡Q| c~e©eZ©x
economic scenario. The monetary policy of FY
2011-12 was formulated to maintain a restrained
eQ‡ii Af¨šÍixY F‡Yi D”P cÖe„w×i wejw¤^Z cÖfve (lag
money supply and credit growth to manage the effect) AvšÍRv©wZK evRv‡i Lv`¨mn wbZ¨ cÖ‡qvRbxq `ª‡eï
pressure arising from a number of factors including g~j¨ e„w×i cÖfv‡e g~j¨ùxwZi µgea©gvb e„w× Ges ewntLv‡Z
the lagged effect of high domestic credit growth in ê‡`wkK gy`ªvi wb¤œ AšÍtcÖev‡ni d‡j †jb‡`b fvimv‡g¨
the previous year, high inflation transmitted
D™¢‚Z Pvc cÖkg‡bi j‡¶¨ 2011-12 gy`ªv bxwZ cÖYxZ nq|
through global price hike of essential commodities
including food items and huge borrowing from
gy`ªv bxwZ‡Z gy`ªv I FY †hvMvb mshZ †i‡L Abyrcv`bkxj I
banking system to meet government expenditure. AcPqg~jK Lv‡Z F‡Yi †hvMvb wbqš¿‡Yi cvkvcvwk K…wl,
The restrained monetary policy was adopted to ¶z`ª I gvSvwi D‡`¨vM LvZmn Drcv`bkxj Ges AMÖvwaKvi
ensure continued support for adequate credit flows Lv‡Z F‡Yi chv©ß †hvMvb wbwðZKi‡Yi Ici ¸iæZ¡v‡ivc
to the productive and priority sectors including
Kiv n‡q‡Q| g~j¨ùxwZ‡K mnbxq chv©‡q bvwg‡q Avbvi
agriculture and SME, while controlling money
supply and credit to unproductive sectors. To
j‡¶¨ evsjv‡`k e¨vsK PjwZ A_©eQ‡ii gvP© ch©šÍ mg‡q
downturn the inflation into a tolerable level bxwZ my` nvi †i‡cv Ges wifvm© †i‡cv `yÕ`dvq †gvU 100
Bangladesh Bank has re-fixed the policy rate of †ewmm c‡q›U e„w× K‡i h_vµ‡g 7.75 I 5.75 kZvs‡k
REPO and reverse REPO at 7.75 percent and 5.75 cybtwbav©iY K‡i| D‡jøL¨, MZ 2010-11 A_©eQ‡ii bxwZ
percent respectively by raising 225 points on 4
my‡ì nvi †gvU 4 `dvq 225 †ewmm c‡q›Um e„w× Kiv nq|
occasions.
my‡ì 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‡ì 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‡ì
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‡ì nvi †hŠw³KxKi‡Y mnvqK f‚wgKv cvjb
maximum of 3.00 percent considering comparative Ki‡e| MÖvnK‡ì‡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‡ì ¯^-¯^
the Bangladesh Bank. I‡qemvB‡U cÖKvk Kivi cvkvcvwk evsjv‡`k e¨vsK‡K
AewnZ Ki‡e|
External Sector ewnt LvZ

Export ißvwb
In the wake of the recovery from global financial g›`v cwiw¯’wZ †_‡K wek¦ A_©bxwZ †ewi‡q Avmvi mv‡_ mv‡_
recession, the export trade of Bangladesh made a evsjv‡`‡ki ißvwbLvZI my`„p Ae¯’v‡b †cŠu‡Q| Z‡e
turnaround. However, sovereign credit crisis in
evsjv‡`‡ki cÖavb ißvwb evRvi- h_v BD‡iv AÂ‡ji
eurozone which is one of Bangladesh’s main
export destinations is having its impact on export
mve©‡fŠg FY mgm¨vi d‡j m„ó Avw_©K msK‡Ui cÖfve
trade. The export earnings of Bangladesh stood at evsjv‡`‡ki ißvwb evwY‡Rï Ici c‡o‡Q| PjwZ 2011-12
US$ 24,288 million in FY 2011-12, which was 5.90 A_©eQ‡i ißvwb 5.90 kZvsk †e‡o `vuwo‡q‡Q 24,288
percent higher than the export earnings (US$ wgwjqb gvwK©b Wjvi hv 2010-11 A_©eQ‡i wQj 22,928
22,928 million) of FY 2010-11. Export earnings in wgwjqb gvwK©b Wjvi| 2011-12 A_©eQ‡i cÖavb †h mKj
FY 2011-12 by major categories increased mainly
Lv‡Z ißvwb Avq e„w× cvq Zb¥‡a¨ I‡fb †cvkvK (13.90
for footwear (30.10 percent), engineering products
(21.10 percent), woven garments (13.90 percent) kZvsk), dzUIq¨vi (30.10 kZvsk), BwÄwbqvwis †cÖvWv±m&
and leather (10.80 percent). On the other hand, (21.10 kZvsk) Ges Pvgov (10.80 kZvsk) ißvwb‡Z
export earnings dipped in respect of raw jute cÖe„w× n‡q‡Q| Ab¨w`‡K KvuPv cvU (-25.40 kZvsk),
(-25.40 percent), ceramic product (-10.20 percent) cvURvZ cY¨ (-7.50 kZvsk), wmivwgKm& cY¨ (-10.20
and jute goods (-7.50 percent). Some of the kZvsk)mn KwZcq c‡Yï cÖe„w× n«vm †c‡q‡Q| miKvi
facilities under the incentive package declared by
the Government are still continuing. Assistance for
ißvwb LvZ‡K mnvqZvi Rb¨ BZtc~‡e© †NvwlZ cÖ‡Yv`bv
the entrepreneurs tiled ‘New Market Exploration c¨v‡K‡Ri †ek wKQy myweav eZ©gv‡bI Ae¨vnZ †i‡L‡Q|
Assistance’ announced under the incentive c‡Yï eûgyLxKiY I bZzb evRvi A‡š^l‡Yi Rb¨ cÖ‡Yv`bv
package is also being extended this year for c¨v‡K‡R †NvwlZ New Market Exploration Assistance
diversification of goods and exploration of new Gi AvIZvq D‡`¨v³v‡ì ewa©Z mnvqZv cÖ`vb Ae¨vnZ
export market. In the meantime, export markets
i‡q‡Q| B‡Zvg‡a¨ bZzb evRvi wn‡m‡e Rvcvb, †Kvwiqv,
have been created in Japan, Korea, South Africa
and Turkey. Besides, due to reduction of duties by
`w¶Y Avwd«Kv I Zzi‡¯‹ evsjv‡`‡ki c‡Yï ißvwbi evRvi
India, Bangladeshi commodities are having gainful m„wó n‡q‡Q| GQvov, fviZ evsjv‡`‡ki KwZcq c‡Yï Ici
access to India. ïé n«vm Kivq fvi‡ZI cY¨ ißvwbi my‡hvM †e‡o‡Q|
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

percent higher than the import payments of US$ A_©eQ‡i Avg`vwb e¨q 5.50 kZvsk e„w× †c‡q 35,516
33,657 million of the preceding year. Although wgwjqb gvwK©b Wjv‡i `vuwo‡q‡Q| AvšÍR©vwZK evRv‡i
import payments increased at the beginning of this
fiscal year due to price hike of fuel in the global
R¡vjvwb †Z‡ji g~j¨ e„w× Ges bZzb ¯’vwcZ we`y¨r‡K‡›`ªi Rb¨
market and higher demand of fuel for electricity R¡vjvwb †Z‡ji Pvwn`v e„w×i Kvi‡Y PjwZ A_©eQ‡ii ïiæ‡Z
generation, it slowed down towards the end of the Avg`vwb e¨q e„w× †c‡jI Kg ¸iæZ¡c~Y© c‡Yï Avg`vwb
year as import of unimportant goods were wbiærmvwnZ Kivi d‡j mv¤cÖwZK mg‡q Avg`vwb cÖe„w×
discouraged. Analyzing the category of imported
goods, it is observed that, import payments for n«vm †c‡q‡Q| Avg`vwb c‡Yï aiY †_‡K †`Lv hv‡”Q †h,
industrial raw materials, petroleum and petroleum FYcÎ wb¯úwËi wfwË‡Z 2012 m‡b g~jabx hš¿cvwZ Ges
products increased by 22.75 percent, 11.15 †fvM¨cY¨ Avg`vwbi e¨q n«vm †c‡q‡Q h_vµ‡g 13.73
percent and 21.76 percent respectively, while
kZvsk Ges 25.79 kZvsk| Avg`vwb e¨q e„w× †c‡q‡Q
import of capital machinery and primary
commodities decreased by 13.73 percent and wk‡íi KvuPvgv‡j 22.75 kZvsk, †c‡Uªvwjqvg 11.15 kZvsk
25.79 percent respectively. I †c‡UªvwjqvgRvZ c‡Y¨ 21.76 kZvsk|
Overseas Employment and Remittance ê‡`wkK Kg©ms¯’vb I †iwgU¨vÝ

Although export of manpower slowed down in the g›`vi cÖfv‡e ga¨cÖv‡P¨ Avevmb wk‡í aŸm bvgv Ges
first half of FY 2010-11 because of the impact of
global recession, particularly on the real estate
gvj‡qwkqvmn K‡qKwU †`‡k Af¨šÍixY Pvwn`v n«vm cvIqvq
markets in the Middle East, and on industrial evsjv‡`k n‡Z kÖgkw³ ißvwb wKQyUv n«vm cvq| d‡j G
labour demand in some South East Asian mg‡q †iwgU¨vÝ cÖev‡ni cÖe„w× n«vm †c‡jI Rvbyqvwi 2011
economies such as Malaysia, it began to increase
from January 2011. The amount of remittances †_‡K Zv Ny‡i `vuwo‡q‡Q| 2010-11 A_©eQ‡i †iwgU¨vÝ
increased by 6.03 percent to US$ 11,650.32 cÖevn 6.03 kZvsk e„w× †c‡q 11,650.32 gvwK©b Wjv‡i
million in FY 2010-11 compared to that of the
previous year. Bangladesh earned remittances of
†cŠu‡Q| PjwZ A_©eQ‡ii †iwgU¨vÝ cÖevn c~e©eZx© A_©eQ‡ii
US$ 12,843.40 million in FY 2011-12 which was Zzjbvq 10.24 kZvsk e„w× †c‡q 12,843.40 wgwjqb
10.24 percent higher than the amount of the
gvwK©b Wjv‡i †cŠu‡Q‡Q| PjwZ A_©eQ‡i 6.91 j¶ Rbkw³
previous year. The Government has undertaken
several initiatives including diplomatic approaches we‡`k Mgb K‡i hv c~e©eZx© A_©eQ‡ii Zzjbvq 57.40
to explore new markets. As many as 6.91 lakh kZvsk †ewk| miKvi bZzb bZzb kÖgevRvi m„wói j‡¶¨
workers went abroad in quest of jobs in FY
2011-12, which was 57.40 percent higher than the K‚U‰bwZK cÖ‡Póv MÖnYmn †ek wKQy cwiKíbv ev¯Íevqb
number stood at in the previous year. To begin K‡i‡Q| B‡Zvg‡a¨ Avwd«Kv, c~e© BD‡ivc I j¨vwUb
manpower export in full swing to Africa, East
Av‡gwiKvi †`k mg~‡n Rbkw³ ißvwb cy‡iv`‡g ïiæ Kivi
Europe and Latin America, a number of diplomatic
initiatives have been undertaken alongside j‡¶¨ K‚U‰bwZK cÖwµqv ïiæ Kivi cvkvcvwk K‡qKwU †`‡k
establishing new labour wings in several countries. evsjv‡`k `~Zvev‡m bZzb kÖg DBs †Lvjv n‡q‡Q| we‡`‡k
There is also an attempt to impart training on
various trades to create skilled labour force to Pvwn`v i‡q‡Q Ggb Kv‡Ri Dc‡hvMx `¶ Rbkw³ ˆZwii
meet the demand of labour markets abroad. j‡¶¨ wewfbœ †Uª‡W cÖwk¶‡Yi D‡`¨vM †bqv n‡q‡Q|
Balance of Payment ê‡`wkK †jb‡`‡b fvimvg¨

Trade balance recorded a rise in deficit by 3.20 2011-12 A_©eQ‡i evwY‡R¨ NvUwZi cwigvY 3.20 kZvsk
percent to US$ 7,995 million in the FY 2011-12 as e„w× †c‡q `vuovq 7,995 wgwjqb gvwK©b Wjvi, †hLv‡b
compared to the deficit of US$ 7,744 million during c~e©eZx© A_©eQ‡i G NvUwZi A¼ wQj 7,744 wgwjqb gvwK©b
FY 2010-11. During this period, the current Wjvi| G mg‡q PjwZ wnmv‡e DØ„‡Ëi A¼ `vuovq 1,630
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|
Medium Term Prospect of Bangladesh Economy evsjv‡`‡ki A_©bxwZi ga¨‡gqv`x m¤¢vebv

In the current context of domestic and global g›`v cieZx© cwiewZ©Z êwk¦K I Af¨šÍixY A_©‰bwZK
economic scenario, a Medium-Term cwiw¯’wZi †cª¶vc‡U KwZcq AšÍwb©wnZ Abygv‡bi Ici wfwË
Macroeconomic Framework (MTMF) for FY
K‡i ga¨‡gqv`x mvgwóK A_©‰bwZK KvVv‡gv, (Medium
2012-2016 has been worked out based on some
Term Macroeconomic Framework- MTMF,
fundamental assumptions. Just after the recovery of
the world economy from yearlong global recession 2012-16) cÖYqb Kiv n‡q‡Q| 2008-2009 mvje¨vcx
during 2008-09, devastating tsunami and wek¦g›`v †_‡K A_©bxwZi cybiæ×v‡ii ci Rvcv‡b N‡U hvIqv
destruction of nuclear power plant in Japan, the fqven mybvwg I cvigvbweK we`y¨r †K‡›`ª wech©q, BD‡iv
ongoing sovereign debt crisis in several eurozone AÂ‡j m„ó mve©‡fŠg FY mgm¨vi e¨vwß Ges hy³iv‡óªi
economies and continuing economic instability and
mve©‡fŠg FYgv‡bi Aebqb wek¦‡K Av‡iv GKwU g›`vi w`‡K
high unemployment in the USA, have slowed the
pace of the world economic growth significantly. As †V‡j †`q| d‡j 2011 mv‡j êwk¦K cÖe„w× (global
a result, the global output decreased in 2011. output) K‡g hvq| Z‡e BD‡iv AÂ‡ji FY mgm¨v †_‡K
However, afterwards, an integrated policy and DËi‡Yi mw¤§wjZ bxwZ †KŠkj MÖnY, hy³iv‡óªi A_©bxwZ‡Z
strategies to overcome the eurozone crisis, MwZ wd‡i Avmv Ges weKvkgvb I Dbœqbkxj A_©bxwZi †`k
rebouncing of US economic growth and sustaining
mg~‡ni Af¨šÍixY Pvwn`v mgybœZ ivLvi m¶gZvi Kvi‡Y
the domestic demand in emerging and developing
economies, it was expected that global output
2012 mv‡j wek¦ A_©bxwZi cÖe„w× e„w× cv‡e e‡j Avkv Kiv
would increase in 2012. n‡”Q|
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×, ê‡`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|

Development of agriculture sector including that of G cÖe„w× AR©b m¤¢e n‡e g~jZ we`y¨r I R¡vjvwb, †hvMv‡hvM
power, energy and communication sectors are AeKvVv‡gv Ges K…wl Lv‡Zi Dbœq‡bi gvav‡g| we`y¨r Lv‡Z
crucial for achieving the desired growth of GDP.
Undertaking initiatives as envisaged in the miKv‡ii c_bKkv Abyhvqx Kvh©µg MÖnY, R¡vjvwbi Pvwn`v
roadmap for power, exploring new gas deposits to †gUv‡Z bZzb K‚c Lbb Ges bevqb‡hvM¨ R¡vjvwb eënv‡ii
meet existing energy demand and utilising gva¨‡g we`y¨r I R¡vjvwbi Pvwn`v c~iY wewb‡qvM cwi‡e‡ki
renewable energy will ensure investment-friendly
environment in power and energy sector. It is also Dbœqb NUv‡e e‡j Avkv Kiv n‡q‡Q| †hvMv‡hvM Lv‡Zi
expected that infrastructure deficit will be removed Dbœq‡b miKvwi-†emiKvwi Askx`vwiZ¡ (wcwcwc) D‡`¨vM‡K
by reinvigorating public-Private Partnership (PPP) GwM‡q †bqv Ges GKBmv‡_ evwl©K Dbœqb Kg©m~wPi c~Y© I
initiatives in the development of communication
sector and efficient and timely implementation of ¸YMZ ev¯Íevq‡bi gva¨‡g AeKvVv‡gvMZ AcÖZzjZv
Annual Development Program. In order to ensure (infrastructure deficit) `~i Kiv m¤¢e n‡e e‡j cÖZ¨vkv
proper implementation of projects to be taken up
Kiv n‡q‡Q| wcwcwcÕi AvIZvq fwel¨‡Z †h mKj cÖKí
under PPP, a scheme has been worked out and a
set of policies and guidelines have been approved MÖnY Kiv n‡e Zvi myôz ev¯Íevq‡bi Rb¨ GKwU Kg©m~wP MÖnY
by the Government. Ges bxwZgvjv I wb‡`©wkKv miKvi Aby‡gv`b K‡i‡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`ÿr 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 eë¯’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 ê‡`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. ê‡`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 eë¯’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.
êwPÎKi‡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 ê‡`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‡gï 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 ê‡`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|
Digital Bangladesh wWwRUvj evsjv‡`k

Its true meaning lies in proper application of cÖhyw³i mv_©K cÖ‡qv‡Mi gva¨‡g wk¶v, ¯^v¯’¨ I `vwi`ª
technology to implement all the commitments of we‡gvPbmn miKv‡ii mKj cÖwZkÖæwZ c~i‡Yi g‡a¨ Gi A_©

the government regarding education, health, I mv_©KZv wbwnZ| wWwRUvj evsjv‡`k-aviYvi Avmj
employment and poverty alleviation. The main D‡Ïk¨ n‡jv cÖhyw³i mv_©K cÖ‡qvM K‡i RbM‡Yi
purpose of this idea is to improve the standards of
living of the people by empowering them, ensuring ¶gZvq‡bi gva¨‡g Zv‡ì RxebhvÎvi gv‡bvbœqb Kiv,
transparency and accountability in all spheres of mgv‡Ri mKj †¶‡Î ¯^”QZv I `vqe×Zv wbwðZ Kiv,
life, establishing good-governance and, above all,
mykvmb cÖwZôv Kiv Ges m‡e©vcwi RbM‡Yi †`vi‡Mvovq
bringing public services to their doorsteps through
the most effective use of technology. In short, mKj †mev †cuŠ‡Q †`qv| ms‡¶‡c ej‡Z †M‡j, wWwRUvj
Digital Bangladesh is – a happy prosperous and evsjv‡`k n‡jv myLx-mg„× I Av‡jvwKZ evsjv‡`k, †h †`k
enlightened Bangladesh, which is free from
n‡e mKj gvby‡li Z‡i, †hLv‡b ¶zav, `vwi`ª, AmgZv I
hunger, poverty, inequality and corruption and
belongs completely to its people and is driven `ybx©wZ _vK‡e bv Ges †h †`k wWwRUvj cÖhyw³ cÖ‡qv‡Mi
forward by digital technology. gva¨‡g mvg‡bi w`‡K GwM‡q hv‡e|
Perspective Plan 2010-2021 †cÖw¶Z cwiKíbv 2010-2021

The Government keeping in view the Golden ¯^vaxbZvi myeY© RqšÍx‡K mvg‡b †i‡L miKvi Ôevsjv‡`k
Jubilee of Independence has formulated
†cÖw¶Z cwiKíbv 2010-2021Õ kxl©K cwiKíbv `wjj
“Bangladesh Perspective Planning 2010-2021”,
in the light of Vision-2021 to attain a definite set of cÖYqb K‡i‡Q| evsjv‡`‡ki A_©‡bwZK I mvgvwRK Dbœq‡bi
objectives that relate to economic and social mywbw`©ó j¶¨ AR©‡bi R‡b¨B iƒcKí-2021| G cwiKíbvq
development of Bangladesh. The document
reflects the hopes and aspirations of common †`‡ki KvswLZ Dbœq‡bi †KŠkjMZ j¶¨gvÎv mg~n D‡jøL
people which has been given the top priority and K‡i Avcvgi Rbmvavi‡Yi Avkv-AvKvsLv‡K m‡ev©”P
incorporates the development philosophy of the
government, its longterm vision and strategic goals AMÖvwaKvi w`‡q RvwZi `xN©‡gqv`x Dbœqb `k©b I ¯^‡cœi
of desired development. The fundamental cÖwZdjb Kiv n‡q‡Q| G `xN©‡gqv`x iƒcK‡íi †gŠwjK
objective of this long term plan is to alleviate
poverty by achieving higher growth and to turn
D‡Ïk¨ n‡”Q D”PZi cÖe„w× AR©‡bi gva¨‡g `vwi`ª we‡gvPb
Bangladesh into a medium income country where Ges 2021 mv‡ji g‡a¨ evsjv‡`k‡K GKwU ga¨ Av‡qi
poverty will be brought to the minimum and
†`‡k cwiYZ Kiv †hLv‡b `vwi`ª me©wb¤œ chv©‡q Ae¯’vb
regional disparity in the sphere of economic
development will be reduced significantly. Ki‡e Ges A_©‰bwZK Dbœq‡b AvÂwjK êlg¨ K‡g hv‡e|
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 eënvi 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. eë¯’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
Emergence of Agrani Bank limited AMÖYx e¨vsK wjwg‡U‡Wi AvZ¥cÖKvk

Agrani Bank Limited started its journey as a Public 17 †g 2007 Zvwi‡L AMÖYx e¨vsK GKwU cvewjK wjwg‡UW
Limited Company on 17 May 2007 and took over †Kv¤úvwb wn‡m‡e AvZ¥cÖKvk K‡i| ÔAMÖYx e¨vsK wjwg‡UWÕ
the business, assets, liabilities, rights and
obligations of the former Agrani Bank, which cÖv³b ÔAMÖYx e¨vsKÕ-Gi eëmv, m¤ú`, `vq, AwaKvi I
emerged as a Nationalized Commercial Bank in KZ©„Z¡ AwaMÖnY K‡i| 1972 mv‡j evsjv‡`‡k e¨vsK mg~n
1972, pursuant to the Bangladesh Banks
Nationalization Order 1972 (President's Order No. RvZxqKiY Av‡`k e‡j (†cÖwm‡W‡›Ui AW©vi bs 26, 1972
26 of 1972), on a going concern basis through a mvj) AMÖYx e¨vsK cÖwZwôZ nq| AwaMÖn‡Yi KvR m¤úbœ nq
Vendor's Agreement. The Agreement was signed
15 b‡f¤î 2007 mv‡j GKwU †fÛi Pzw³i gva¨‡g †hLv‡b
between the Ministry of Finance, Government of
the People's Republic of Bangladesh on behalf of MYcÖRvZš¿x evsjv‡`k miKv‡ii A_© gš¿Yvjq wQj AMÖYx

the former Agrani Bank and the Board of Directors e¨vsK-Gi c‡¶ Ges AMÖYx e¨vsK wjwg‡U‡Wi c‡¶ wQj Gi
of the Bank on behalf of Agrani Bank Limited on 15 cwiPvjbv cwil`| GB AwaMÖnY Kvh©Ki Kiv nq 1 RyjvB
November 2007 with retrospective effect from 01
July 2007. 2007 †_‡K|
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¤î 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 eëmvi 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 ùvwo‡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
Shareholders’ Equity †kqvi‡nvìviÕm BKz¨BwU

The shareholders’ equity of the bank as on 31 2012 mv‡ji wW‡m¤î †k‡l e¨vs‡Ki †gvU †kqvi‡nvìvi‡ì
December 2012 stood at Tk. 717 crore. The BKz¨BwUi cwigvY wQj 717 †KvwU UvKv| †evbvm †kqvi Bmy¨
paid-up capital of the bank has increased from Tk.
Kivi d‡j cwi‡kvwaZ g~jab 901.18 †KvwU UvKv †_‡K
901.18 crore to Tk. 991.29 crore due to issuance of
bonus shares. e„w× †c‡q 991.29 †KvwU UvKvq DbœxZ n‡q‡Q|
Funding Structure Znwej KvVv‡gv

The year-end funding structures of the bank in 2011 Ges 2012 mv‡ji †k‡l e¨vs‡Ki Znwej KvVv‡gv wQj
2011 and 2012 are given below: wb¤œiƒct

Taka in Crore
Sources of Fund 2012 2011
Deposits 29,242.92 25,220.84
Paid-up-Capital 991.29 901.18
Revaluation & Amortization
Reserve in Govt. Securities 11.72 26.93
Assets Revaluation Reserve 753.20 753.84
* Retained Surplus from Profit and
Loss Account (1,454.35) 497.83
Total 29,959.26 27,815.10
* Retained Surplus reduced to Tk. (1,454.35) crore mainly due to increased requirment of loan loss provision resulting from increased
amount of CL, calculated on the basis of newly introduced loan classification system by the BB.
Asset Portfolio m¤ú‡ì †cvU©‡dvwjI

The year-end asset portfolio scenarios of the bank in 2011 Ges 2012 mv‡ji †k‡l e¨vs‡Ki m¤ú‡ì
2011 and 2012 are appended below: †cvU©‡dvwjI wQj wb¤œiƒct
Taka in Crore Crore Taka

Particulars of Assets 2012 2011 Asset Portfolio
Loans and Advances 21,266.30 19,408.56 Investments
9241.98
Investments 9,241.98 8,533.13
Fixed Assets 1138.07
Fixed Assets 1,138.07 1,122.66
Loans and Money at call
Money at call and short notice 270.00 100.00 Advances and short notice 270.00
21,266.30
Cash in hand and with other Banks & FIs 2,597.67 2,253.24 Cash in Hand and with other
Banks & FIs 2,597.67
Other Assets 3,357.62 3,464.48
Other Assets 3,357.62
Total 37,871.64 34,882.07
Business Performance eëmvq AMÖMwZ

a) Deposits K) AvgvbZ
At the end of December 2012, the deposit of the bank
2012 mv‡ji wW‡m¤î †k‡l e¨vs‡Ki Avgvb‡Zi cwigvY
stood at Tk. 29,242.92 crore compared to Tk. 25,220.84
crore at the end of previous year leading to a wQj 29,242.92 †KvwU UvKv hv MZeQi wQj 25,220.84
year-on-year growth in deposit of 15.95 percent. Given †KvwU UvKv| G‡Z G‡¶‡Î cÖe„w×i nvi `vuovq 15.95
the adverse economic scenario of the country during the
kZvsk| Av‡jvP¨ eQ‡ii g›`v cwiw¯’wZ m‡Ë¡I Avgvb‡Zi
year under review, this growth rate is a remarkable
achievement. cÖe„w×i nvi wQj D‡jøL‡hvM¨|
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 ùvwo‡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¤î 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
b) Asset Quality L) m¤ú‡ì gvb

The Bank maintained quality of its asset and this is AMÖYx e¨vsK Zvi m¤ú‡ì ¸YMZ gvb i¶v K‡i P‡j‡Q hv
one of the strong areas of its operation. The bank Gi cwiPvjbv kw³i GKwU w`K| m¤ú‡ì gvb wbwðZ K‡iB
did not compromise with its standard of excellence
e¨vsK †_‡K FY †`qv nq| A_©vr e¨vs‡Ki m¤ú‡ì
in terms of maintaining asset quality while
extending credit facilities. In order to improve the DrKl©Zvi gv‡bi cÖ‡kœ KLbI Av‡cvl Kiv nq bv| m¤ú‡ì
quality of our assets, the Bank Management has ¸YMZ gvb e„w×i Rb¨ e¨vsK eëmv I evwY‡R¨ FY †`qv‡K
prioritised financing in trade and commerce by AMÖvwaKvi w`‡”Q Ges G‡¶‡Î PjwZ g~jab FY cÖ`vb
providing working capital. Moreover, some Ki‡Q| bZzb †kªYxweb¨vwmZ F‡Yi cwigvY e„w× †ivaK‡í
pragmatic steps have been taken to reduce Ges cyi‡bv †kªYxweb¨vwmZ F‡Yi UvKv Av`vqc~e©K Kwg‡q
non-performing loans as well as to prevent new
Avbvi Rb¨ we‡kl eë¯’v †bqv n‡q‡Q|
classification thereof.
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 ê‡`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|
d) Import-Export Business N) Avg`vwb-ißvwb eëmv

In 2012 the import business stood at Tk. 16,963 2012 mv‡j Avg`vwb eëmvq A_©vqb n‡q‡Q 16,963 †KvwU
crore in and the export business was Tk. 8,838 UvKv Ges ißvwb eëmvq A_©vqb Kiv n‡q‡Q 8,838 †KvwU
crore. UvKv|

e) Foreign Remittance Business O) ê‡`wkK †iwgU¨vÝ eëmv
Inward foreign remittance is a major life blood of evsjv‡`‡ki µgea©gvb A_©bxwZi Ab¨Zg cÖvYkw³ n‡jv
rising economy of Bangladesh. In spite of declining
AšÍg©yLx †iwgU¨vÝ cÖevn| weMZ eQi¸‡jv‡Z wek¦g›`vi
trend in manpower export from the country due to
global economic meltdown during the last couple Kvi‡Y evsjv‡`k n‡Z Rbkw³ ißvwb n«vm m‡Ë¡I 2011
of years, Bangladesh registered 16.51 percent mv‡ji Zzjbvq MZeQi †`‡ki †iwgU¨v‡Ý 16.51 kZvsk
growth in this sector in 2012 as against 2011. cÖe„w× AwR©Z n‡q‡Q| 2012 m‡b †`‡ki AšÍg©yLx
Inward foreign remittance of the country for the
year 2012 is USD 14,176.91 million. †iwgU¨v‡Ýi cwigvY 14,176.91 wgwjqb gvwK©b Wjvi|
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:
Bank-wise Position of Remittance Million USD

Year
Name of Bank 2009 2010 2011 2012
Islami Bank (BD) Limited 2,251.22 3,012.00 3,171.31 3,913.07
Agrani Bank Limited 813.34 989.33 1,167.76 1,427.33
Sonali Bank Limited 1,034.65 1,264.42 1,227.04 1,426.07
Janata Bank Limited 818.02 760.30 950.37 1,221.47
Other Banks 5,825.80 4,713.90 5,651.61 6,188.97
Total 10,743.03 10,739.95 12,168.09 14,176.91
* Source: Bangladesh Bank website
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 ê‡`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 eëmv Pvjyi cÖ¯‘wZ wb‡q‡Q| wmsMvcyi cÖevmx
subsidiary of Agrani Bank Limited has inaugurated evsjv‡`kx‡ì 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‡ì
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¤î 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‡ì †`vi‡Mvovq †iwgU¨vÝ
process obtaining approval for a license from the †mev †cŠu‡Q †Ìqvi 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 eë¯’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‡ì 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

f) Guarantee Business P) M¨vivw›U eëmv
In 2012, the Bank issued guarantees worth Tk. 2012 mv‡j M¨vivw›U eëmv‡q e¨vsK 515.01 †KvwU
515.01 crore compared to Tk. 442.05 crore in the UvKvi M¨vivw›U cÖ`vb K‡i, hvi cwigvY 2011 mv‡j wQj
previous year. The guarantees were issued in
442.05 †KvwU UvKv| Dchy³ Rvgvb‡Zi wecix‡Z
favour of different government authorities,
MÖvnK‡ì c‡¶ e¨vsK KZ…©K wewfbœ miKvwi,
autonomous bodies, corporations, multi-national
companies etc. against proper securities on behalf ¯^vqËkvwmZ cÖwZôvb/ms¯’v, eûRvwZK †Kv¤cvwbi
of clients of the Bank. AbyK~‡j M¨vivw›U cÖ`vb Kiv nq|
g) Fund Management and Treasury Operation Q) Znwej eë¯’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¯‹ ê‡`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 eë¯’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

Sl. Item Year µg LvZ eQi
No 2012 2011 bs 2012 2011
1 Sale of securities 63.53 73.93 1 wmwKDwiwUR weµq 63.53 73.93
2 Sale of shares 1.29 11.13 2 †kqvi weµq 1.29 11.13
3 Interest on Debenture 3.50 5.22 3 wW‡eÂv‡ii my` 3.50 5.22
4 Discount on Treasury Bills 64.71 42.45 4 †UªRvwi we‡ji evÆv 64.71 42.45
5 Interest on Govt. Treasury Bonds 594.11 341.04 5 miKvwi †UªRvwi e‡Ûi my` 594.11 341.04
6 Dividend warrant 42.92 21.55 6 wWwf‡W›U Iqv‡i›U 42.92 21.55
7 Interest on subordinated bond 20.57 17.35 7 mveIiwW‡b‡UW e‡Ûi my` 20.57 17.35
8 Interest on other Bonds 13.78 9.98 8 Ab¨vb¨ e‡Ûi my` 13.78 9.98
Total 804.41 522.65 †gvU 804.41 522.65
With efficient and prudent handling of Treasury, a GKwU Kvh©Ki m¤ú` I `vq eë¯’vcbv KwgwU e¨vs‡Ki †gvU
functioning and effective Asset Liability Committee Znwe‡ji Pvwn`v, eënvi, my‡ì nvi wba©viY Ges m¤ú` I
regulates and articulates the Bank's total need,
exposures, rates and strategy for Asset Liability
`vq eë¯’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 eë¯’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
eë¯’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 eë¯’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¤î e¨vs‡Ki
December 2012 is shown below: wewb‡qvM cwiw¯’wZ wQj wb¤œiƒc:

Year eQi
Type of Securities wmwKDwiwUi aiY 2012 2011
2012 2011
Treasury bills 673.22 835.45 †UªRvwi wej 673.22 835.45
Treasury bonds 6,443.57 5,740.32 †UªRvwi eÛ 6,443.57 5,740.32
Government Inter Bank REPO 0 0 miKvwi AvšÍ:e¨vsK wi‡cv 0 0
Securities Prize bonds 1.38 1.33 wmwKDwiwUR cÖvBR eÛ 1.38 1.33
Sub total (A) 7,118.17 6,577.10 Dc †gvU (K) 7,118.17 6,577.10
Other Bond 148.00 158.00 Ab¨vb¨ eÛ 148.00 158.00
Non- Debentures 38.00 76.00 wW‡eÂvi 38.00 76.00
government †emiKvwi
Securities Shares 1,937.81 1,722.03 †kqvi 1,937.81 1,722.03
wmwKDwiwUR
Sub total (B) 2,123.81 1,956.03 Dc †gvU (L) 2,123.81 1,956.03
Total (A+B) 9,241.98 8,533.13 †gvU (K+L) 9,241.98 8,533.13
Investment 2012 Crore Taka
Shares 1937.81 Other Bonds

148.00
Treasury Bills 673.22

Treasury Bonds
6443.57
Prize Bonds 1.38
Debentures 38.00
i) Loans and Advances S) FY I AwMÖg

The loans and advances of the Bank grew 2012 mv‡j FY I AwMÖ‡gi cwigvY D‡jøL‡hvM¨ nv‡i e„w×
significantly in 2012. The total loans and advances †c‡q‡Q| Av‡jvP¨ mv‡ji †k‡l FY I AwMÖ‡gi †gvU cwigvY
as on 31 December 2012 was Tk. 21,266.30 crore
as against Tk. 19,408.56 crore at the end of
wQj 21,266.30 †KvwU UvKv| c~e©eZx© eQ‡i Gi cwigvY
previous year, showing an increase of 9.57 wQj 19,408.56 †KvwU UvKv| G‡¶‡Î cÖe„w×i nvi 9.57
percent. kZvsk|
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| eëmv 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 eëmvwqK 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¤î 2012 Zvwi‡L LvZ wfwËK FY I AwMÖ‡gi
31 December 2012 is shown below: weeiY wb¤œiƒc:
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 eëmv 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 eëmvwqK 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:
Sector-wise position of Loans Crore Taka
Agriculture and Fishery 864.64

Jute and Jute goods 630.27
Transport, Storage and Communication 150.03
Ship Breaking 219.71
Textile and Readymade Garments 2,675.42
Food and Allied Industry 863.27
Construction and Engineering 185.05
Pharmaceuticals and Chemicals 298.07
Leather 364.10
Power & Energy 1,180.42
Professional and Services 182.27
Housing Service 572.12
Wholesale/ Retail Trading 2,152.78
Personal Loan (staff loan and
other personal loan) 1,569.16
Others 9,358.98

i. Industrial Credit i. wkí FY
Agrani Bank Limited as one of the state-owned ivóªxq gvwjKvbvaxb Ab¨Zg evwYwR¨K e¨vsK wn‡m‡e AMÖYx
commercial banks which plays important role in
e¨vsK wjwg‡UW †`‡ki Dbœq‡bi Rb¨ miKv‡ii `ªæZ wkívqb
implementing Govt's rapid industrial policy for the
overall development of the country. It extends term bxwZ ev¯Íevq‡b ¸iæZ¡c~Y© f‚wgKv cvjb Ki‡Q| wkívq‡bi
loan as well as working capital loan facilities cÖvq mKj †¶‡Î G e¨vsK n‡Z ¯^Zš¿fv‡e I
almost in all sectors of industrialization both Kb‡mvwU©qvg/wmwÛ‡Kkb eë¯’vq wewfbœ miKvwi I †emiKvwi
individually and jointly with other government and e¨vsK Ges Avw_©K cÖwZôv‡bi mv‡_ †hŠ_fv‡e ga¨g I
private banks and financial institutions under
consortium/ syndication arrangement. Credit
`xN©‡gqv`x cÖK‡í †gqv`x I PjwZ g~jab FY cÖ`vb K‡i
facilities are made available not only in _v‡K| G‡¶‡Î bZzb cÖKí ¯’vc‡b FY cÖ`v‡bi cvkvcvwk
establishing new projects but also in BMRE of we`¨gvb cÖK‡íi weGgAviB Ki‡YI FY cÖ`vb Kiv nq| G
existing projects. A total sum of Tk. 6,042.73 crore e¨vsK n‡Z wkí FY Lv‡Z 31.12.2012 ZvwiL ch©šÍ
has been disbursed against a sanctioned amount
2,691wU cÖK‡í gÄywiK…Z FY 7,372.00 †KvwU UvKvi
of Tk. 7,372.00 crore in 2,691 projects up to
December 2012, the outstanding of which stands wecix‡Z 6,042.73 †KvwU UvKv weZiY Kiv n‡q‡Q, hvi
at Tk. 5,172.07 crore. `vq w¯’wZ 5,172.07 †KvwU UvKv|
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
ii. Credit Lines ii. †µwWU jvBbm

Apart from own source, Agrani Bank Limited AMÖYx e¨vs‡Ki wbR¯^ Drm QvovI wb‡¤œv³ †µwWU jvBb
utilizes fund received from the following credit †_‡K Znwej MÖnY K‡i FY weZiY K‡i‡Q:
lines: • AvBwWG †µwWU
• IDA Credit • Gw·g e¨vsK †µwWU
• Exim Bank Credit • GwWwe †µwWU
• ADB Credit
• I‡cK †µwWU
• OPEC Credit
• wkí Dbœqb eÛ Znwej
• Industrial Development Bond Fund
• wewmK Kb‡mvwU©qvg
• BSCIC Consortium
• wewmK mve-K›UªvKwUs
• BSCIC Sub-contracting
• wewmK we‡kl FY
• BSCIC Special Credit
• nvév cÖ‡KŠkj FY (mivmwi wewmK)
• Light Engineering Credit (Direct BSCIC)
• Credit Guarantee Scheme • †µwWU M¨vivw›U ¯‹xg
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:
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

iii. Loan to Power Sector iii. we`y¨r Lv‡Z FY cÖ`vb
Currently Power Sector is treated as the priority eZ©gv‡b we`y¨r LvZ †`‡ki AMÖvwaKvi LvZ wn‡m‡e wPwýZ|
sector of the country. This Bank has been playing e¨vsK G Lv‡Z A_©vq‡b ¸iæZ¡c~Y© f‚wgKv cvjb Ki‡Q|
a significant role in financing this sector. Up to 2012 mv‡ji wW‡m¤î ch©šÍ G Lv‡Z 9wU cÖK‡í †gvU
December 2012, the bank has disbursed a total of 1,173.72 †KvwU UvKv FY weZiY Kiv n‡q‡Q| A_©vqbK…Z
Tk.1,173.72 crore in 9 projects generating 621 MW 9wU cÖKí n‡Z ˆ`wbK 621 †gMvIqvU we`y¨r Drcvw`Z n‡”Q
electricity per day all of which are duly linked with Ges Zv RvZxq MÖx‡Wi gva¨‡g †`‡ki wewfbœ AÂ‡j mieivn
the national grid of the country. Kiv n‡”Q|
A power plant project financed by Agrani Bank Limited
iv. Loan to Health Sector iv. ¯^v¯’¨ Lv‡Z FY cÖ`vb

Individual’s sound health is mandatory for the †`‡ki mvwe©K Dbœq‡bi Rb¨ cÖwZwU bvMwi‡Ki my¯^v¯’¨ GKvšÍ
overall development of the country. Sound health
refreshes both body and mind together and cÖ‡qvRb| my¯’ kixi †`n gb m‡ZR iv‡L Ges K‡g© †cÖiYv
thereby instigates motivation in daily work. Hence, †hvMvq| ZvB †`‡ki Avcvgi Rb‡Mvôxi Øvi cÖv‡šÍ ¯^v¯’¨
to spread the medical services to the doorsteps of
†mev †cuŠ‡Q †`qvi cÖqv‡m e¨vsK KZ…©K G hver 30wU
mass people of the country, the bank has
disbursed a total of Tk.149.91 crore so far to 30 nvmcvZvj I wK¬wb‡K †gvU 149.91 †KvwU UvKv FY weZiY
hospitals and clinics, the outstanding of which is Kiv n‡q‡Q hvi ermiv‡šÍ `vq w¯’wZ 178.01 †KvwU UvKv|
Tk.178.01 crore at the end of the year.
v. Syndication Financing v. wmwÛ‡Kkb FY

ABL has been playing an important role in wmwÛ‡Kkb eë¯’vq eo eo cÖKí ev¯Íevq‡b AMÖYx e¨vsK
implementing large project under syndication wjwg‡UW †`‡k ¸iæZ¡c~Y© f‚wgKv cvjb K‡i Avm‡Q| G‡¶‡Î
financing. Since 2005 the bank has financed 2005 mvj †_‡K jxW e¨vs‡Ki f‚wgKv cvjbmn
Tk.1,806.98 crore against 73 projects up to
wmwÛ‡Kkb/Kb‡mvwU©qv‡g AskMÖnYKvix m`m¨ e¨vsK wn‡m‡e
December 2012 as the member bank as well as
lead arranger of syndication/consortium, the wW‡m¤î 2012 ch©šÍ 73wU cÖK‡íi wecix‡Z 1,806.98
outstanding of which is Tk.1,727.94 crore at the †KvwU UvKv A_©vqb Kiv n‡q‡Q, hvi ermiv‡šÍ `vq w¯’wZ
end of the year. 1,727.94 †KvwU UvKv|
90
ABL is a lending member bank of the glorious Jatrabari Flyover Project in Dhaka.
vi. Green Banking Financing vi. MÖxb e¨vswKs dvBb¨vwÝs

ABL extends credit facilities from its own source †mŠi kw³i eënvi Ges cwi‡ek evÜe weKí R¡vjvwb
instead of availing refinancing facilities provided by
Bangladesh Bank to establish project like Solar eënv‡ii gva¨‡g we`y¨r I M¨vm NvUwZ †gvKvwejvq Ges
Panel, Bio-gas, Effluent Treatment Plant and BUfvUvi Kve©b wbM©gbmn wkí eR¨© n«vm K‡i cÖvK…wZK
Hybrid Hoffman Kiln (HHK) and similar fvimvg¨ i¶v I Rb¯^v¯’¨ msi¶‡Yi ¯^v‡_© mn‡R I mnR
technological projects. The bank finances in these
sectors on easy terms and conditions for k‡Z© †mŠikw³, ev‡qvM¨vm, eR©¨ cwi‡kvab cøv›U Ges
maintenance of ecological balance and public BUfvUvi Rb¨ Hybrid Hoffman Kiln ev mggv‡bi cÖhyw³
health by reducing industrial wastages as well as
m¤úbœ cÖKí ¯’vc‡b evsjv‡`k e¨vs‡Ki cybtA_©vqb myweav bv
carbon emission of brick fields and through
utilization of solar energy and environment-friendly wb‡q e¨vs‡Ki wbR¯^ Znwej n‡Z FY cÖ`vb Kiv n‡”Q|
alternative fuel to combat the deficiency of 2012 mvj ch©šÍ †mŠikw³ Lv‡Z 66 Rb FY MÖnxZvi
electricity & gas. The bank disbursed Tk 33.95 lac
in 66 Solar Energy plants, Tk 209.98 lac in Bio-gas AbyK‚‡j 33.95 j¶ UvKv, ev‡qvM¨vm Lv‡Zi 88 Rb FY
plant against 88 borrowers and Tk 270.00 lac in MÖnxZvi AbyK‚‡j 209.98 j¶ UvKv, Ges Hybrid
Auto Brick fields using Hybrid Hoffman Kiln Hoffman Kiln cÖhyw³‡Z BU ˆZixi Rb¨ 1 Rb FY MÖnxZvi
technology against 1 borrower respectively upto
2012. AbyK‚‡j 270.00 j¶ UvKv FY weZiY Kiv n‡q‡Q|
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

government policies which will create employment gva¨‡g bZzb Kg©ms¯’v‡bi m„wó, A_©‰bwZK cÖe„w× AR©b e„w×
and enhance economic growth. cvq GiKg Lv‡Z e¨vsK FY weZiY Ki‡e|
vii. SME Financing of ABL vii. GmGgB Lv‡Z AMÖYx e¨vsK wjwg‡U‡Wi A_©vqb
At present SME sector has become one of the GmGgB LvZ eZ©gv‡b evsjv‡`‡ki A_©bxwZi me‡P‡q
most important thrust sectors for the economy of m¤¢vebvgq LvZ mg~‡ni g‡a¨ Ab¨Zg| G Lv‡Z †`‡ki cÖvq
Bangladesh. Around 25.00 percent employment is
25 kZvsk Kg©ms¯’vb n‡”Q| Kg cyuwR wewb‡qv‡Mi gva¨‡g
created by this sector. This employment is
provided with much lower level of investment. To GB Kg©ms¯’v‡bi msKzjvb m¤¢e n‡”Q| evsjv‡`k e¨vs‡Ki
comply with the Bangladesh Bank’s instruction, wb‡`©kbvi Av‡jv‡K AMÖYx e¨vsK wjwg‡UW GmGgB
Agrani Bank Limited formulates a set of A_©vq‡bi Dci GK¸”Q cÖweavbgvjv Ges bxwZgvjv ˆZwi
regulations and guidelines on SME financing. K‡i‡Q| miKvi KZ©„K cÖewZ©Z wkíbxwZ 2010 Abymv‡i
Bangladesh Bank modified the definitions and
evsjv‡`k e¨vsK KZ©„K GmGgB Gi msÁv Ges êwk‡óï
criteria as per industrial policy-2010 formulated by
the Government. Moreover, Bangladesh Bank has
AvaywbKvqb Kiv n‡q‡Q| AwaKš‘, evsjv‡`k e¨vsK ¶z`ª
included Micro industry/enterprise and Cottage wkí/cÖwZôvb Ges KzwUi wkí/cÖwZôvb‡K GmGgB A_©vq‡bi
industry/enterprise in SME financing. AšÍf‚©³ K‡i‡Q|
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
Three Sectors of SME Financing: GmGgB F‡Yi LvZmg~n wb‡¤œv³ 3 cÖKvi

Service sectors: Hotel, restaurant, tailoring, †mev LvZt †nv‡Uj, †i÷z‡i›U, †UBjvwis, jwÛª, nvmcvZvj,
laundry, hospital, clinic, kindergarten, block and wK¬wbK, wKÛviMv‡U©b, eøK GÛ wcÖw›Us, Uªv±i, cvIqvi wUjvi,
printing, tractor, power tiller, irrigation equipment etc. †mPhš¿ BZ¨vw`|
92
Business sectors: Grocery shop, cloths shop, eëmv 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 eëmv, dvwb©Pvi eëmv, K…wlRvZ
agro-business and other income generating and cY¨, Ges Ab¨vb¨ Avq Drmvwi I mvgvwRKfv‡e MÖnY‡hvM¨
socially acceptable business. eëmv|
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`|
Position of SME Loan as on 31 December 2012 Taka in Crore
Nature of Loan
Small Enterprises 1,005.00 13,003 907.13 90.31 % 32,325 2,365.70

Medium Enterprises 610.00 314 342.43 56.09% 498 1,284.36
Total 1,615.00 13,317 1,249.56 77.37% 32,823 3,650.06
NGO Linkage Program of ABL GbwRI wjs‡KR †cÖvMÖvg

Agrani Bank Limited is a pioneer Bank in †hvM¨ GbwRI‡ì gva¨‡g FY Kvh©µg m¤úªmvi‡Y AMÖYx
expanding credits through the competent NGOs. e¨vsK wjwg‡UW GKwU AMÖMvgx e¨vsK| e¨vsKwU GmGgB FY
The Bank engaged different NGOs for expanding
†mev m¤úªmvi‡Y wewfbœ GbwRI cÖwZôvb‡K wb‡qvwRZ
the SME credit services. Any potential NGO can
avail the credit facilities from this bank under the K‡i‡Q| †h †Kvb †hvM¨ GbwRI cÖwZôvb e¨vs‡Ki we`¨gvb
existing rules and regulations. The bank has wewagvjvi Av‡jv‡K GB FY myweav MÖnY Ki‡Z cv‡i|
already delivered a total loan of Tk. 800 millions to B‡Zvg‡a¨ e¨vsKwU mnR k‡Z© GbwRI cÖwZôvb eª¨vK-†K
the BRAC and Tk. 110 millions to MIDAS as 800 wgwjqb UvKv Ges gvBWvm-†K 110 wgwjqb UvKv FY
wholesale credits with soft terms and conditions.
cÖ`vb K‡i‡Q| wi‡UBjvi wn‡m‡e Gme GbwRI cÖwZôvb
As a retailer, they have re-lent the same to the
targeted SME people. GmGgB FYMÖnxZvi gv‡S G FY cybtweZiY Ki‡Q|
Foreign Aided Credit Programs ê‡`wkK mvnvh¨cyó FY`vb cÖKí

The ABL has been utilizing its own fund as well as FY weZiY Kvh©µg cwiPvjbvi Rb¨ AMÖYx e¨vsK wjwg‡UW
the foreign fund for credit operation. The credit e¨vs‡Ki wbR¯^ Znwej I ê‡`wkK Znwej eënvi K‡i‡Q|
programs namely EGPRP and MSFSCIP
BwRwcAviwc I GgGmGdGmwmAvBwc (KzwoMÖvg) cÖKí
(Kurigram) are being successfully operated by the
bank under the financial assistance of IFAD. Under `yÕwU Bdv‡ì Avw_©K mnvqZvq mdjZvi mv‡_ cwiPvwjZ
the EGPRP program, the bank is extending credits n‡”Q| BwRwcAviwc-Gi AvIZvq e¨vsKwU mviv‡`‡k †gvU
to the people through its 177 branches. 177wU kvLvi gva¨‡g D‡`¨v³v‡ì gv‡S FY weZiY Ki‡Q|
SME Products/Programs of ABL AMÖYx e¨vs‡Ki GmGgB †cÖvWv±m/FY Kg©m~wP

For easy access to credit by the entrepreneurs the D‡`¨v³v‡ì FY cÖvwßi myweav‡_© AMÖYx e¨vsK wjwg‡UW
ABL has introduced several credit products/ A‡bK¸‡jv GmGgB †cÖvWv±m/FY Kg©m~wP Pvjy K‡i‡Q| GB
programs which are as follows: (i) Nari Agrani, (ii) FY Kg©m~wP/†cÖvWv±¸‡jv n‡jv t (1) bvix AMÖYxt gwnjv‡ì
Employment Generation Project for the Rural Poor Rb¨ GKwU we‡kl FY`vb Kg©m~wP, (2) Ggcøq‡g›U
(EGPRP), (iii) Special Micro Credit Program †Rbv‡ikb cÖ‡R± di w` iæivj cyIi (BwRwcAviwc)t GKwU
(SMCP), (iv) Daridra Bimochon Karmasuchi Bdv` mvnvh¨cyó FY`vb cÖKí, (3) we‡kl ¶z`ªFY Kg©m~wP

(DABIK), (v) Loan for Disabled Persons (LDP), (GmGgwmwc), (4) `vwi`ª we‡gvPb Kg©m~wP (`vweK)t g~jZt
(vi) Small Credit Program for Women (SCPW), nZ `wi`ª‡ì Rb¨ GKwU ¶z`ª FY`vb Kg©m~wP, (5)
(vii) Special Commercial Loan Program (SCLP), cÖwZeÜx‡ì Rb¨ FY`vb Kg©m~wP (GjwWwc), (6) gwnjv‡ì
(viii) Marginal and Small Farm System Crop ¶z`ª FY`vb Kg©m~wP (GmwmwcWweD), (7) we‡kl evwYwR¨K
FY Kg©m~wP (GmwmGjwc), (8) cÖvwšÍK I ¶z`ª Lvgvi
Intensification Project (MSFSCIP), (ix) SME Small
c×wZ‡Z km¨ wbweoKiY (GgGmGdGmwmAvBwc), (9)
Transport Credit Program (SMESTCP) and (x)
GmGgB ¶z`ª cwienY FY Kg©m~wP (GmGgBGmwUwmwc),
Solar Energy, Bio-gas and Effluent Treatment (10) †mŠikw³, ev‡qvM¨vm Ges eR©¨ cwi‡kvab cø¨v›U
Plant Credit Scheme (SBETPCS) etc. cÖwZôvq FY`vb Kg©m~wP (GmweBwUwcwmGm) BZ¨vw`|
Performance of SME Sector in 2012 2012 mv‡j GmGgB Lv‡Z AR©b
In the year 2012, ABL has disbursed SME loan of AMÖYx e¨vsK wjwg‡UW 2012 mv‡j 13,317 Rb FY MÖnxZvi
Tk.12,496 millions to the 13,317 entrepreneurs. At gv‡S †gvU 12,496 wgwjqb UvKv FY weZiY K‡i‡Q| GKB
the same time, the bank has recovered Tk. mg‡q FY MÖnxZv‡ì wbKU †_‡K FY Av`vq Kiv n‡q‡Q
9,590.40 million from the borrowers. About Tk.
9,590.40 wgwjqb UvKv| 914 Rb gwnjv D‡`¨v³v‡K
321.40 million of SME loan is ensured to 914
women entrepreneurs. The SME outstanding
321.40 wgwjqb UvKv weZiY Kiv n‡q‡Q| G mg‡q
credit volume has gone up to Tk. 36,500 million to 32,823 Rb D‡`¨v³vi wecix‡Z AMÖYx e¨vsK wjwg‡U‡Wi
the 32,823 persons within the period. As GmGgB FY w¯’wZi cwigvY 36,500 wgwjqb UvKvq DbœxZ
promotional efforts, the bank has colorfully n‡q‡Q| cÖ‡gvkbvj Kvh©µ‡gi Ask wn‡m‡e G e¨vsK mswkøó
participated in different SME fairs organized by the K‡qKwU cÖwZôvb KZ…©K Av‡qvwRZ eY©vX¨ GmGgB †gjvq
concerned organizations. Different training AskMÖnY K‡i‡Q| GmGgB †µwW‡Ui myôz cwiPvjbvi Rb¨
programs have been arranged for the SME credit GmGgB †µwWU Kg©KZ©v‡ì Rb¨ wewfbœ †U&ªwbs †cÖvMÖv‡gi
officers for smooth operation of SME credits.
Av‡qvRb Kiv n‡q‡Q|
SME Vision 2013 GmGgB iƒcKí 2013

SME is capable of increasing national income, RvZxq Avq e„w×, `ªæZ Kg©ms¯’vb m„wó, ¶zav I `vwi`ªZv
employment generation, eradication of poverty `~ixKiY, bvix-cyiæ‡li mgZv Avbqb Ges bvixi ¶gZvq‡b
and hunger, gender equality and women
GmGgB-Gi ¸iæZ¡ Acwimxg| BD‡ivc I Gwkqvi wKQy
empowerment. SME sector has played a vital role
mg„×kvjx †`‡ki A_©‰bwZK Dbœq‡b GmGgB LvZ ¸iæZ¡c~Y©
in economic development of some prosperous
countries of Asia and Europe. The government has f‚wgKv cvjb K‡i‡Q| †`‡ki Kg©ms¯’vbg~jK wkívq‡bi Rb¨
taken SME as one of the flagship strategies for ¶z`ª Ges gvSvix wkí‡K miKvi Ab¨Zg cÖavb †KŠkj
employment generating industrialization in the wn‡m‡e MÖnY K‡i‡Q| wkíbxwZ 2010 Gi gva¨‡g GmGgB
country. The Government also formulated policy Gi Dbœq‡bi Rb¨ miKvi wewfbœ wb‡`©kbv w`‡q Kg©‡KŠkj
strategies for development of SME in the industrial ˆZwi K‡i‡Q| miKv‡ii Dbœqb mn‡hvMx wn‡m‡e 2013 mv‡j
policy of 2010 providing guidelines for SME
GmGgB Gi m¤cÖmvi‡Y AMÖYx e¨vsK wjwg‡U‡Wi GKwU
development. As a development partner of the
Government, the ABL has a wide vision for the
we¯Í…Z iƒcKí (wfkb) i‡q‡Q| GB iƒcK‡íi AvIZvq
year 2013. Under the vision, the SME credit should GmGgB FY‡K RbM‡Yi †`vi-†Mvovq †cuŠQv‡bv n‡e| G
be extended to the door step of the people. In this j‡¶¨ 2013 mv‡j GmGgB FY weZi‡Yi Rb¨ ch©vß ev‡RU
view, sufficient credit disbursement budget will be eivÏ Kiv n‡e| DËg FY †mev wbwðZ Kivi Rb¨ kvLv
allocated for the year 2013. An action plan is made eë¯’vcK I GmGgB FY Kg©KZ©v‡ì cÖwk¶‡Yi wel‡q
with a view to training up the managers and SME
GKwU Kg©cwiKíbv nv‡Z †bqv n‡e| 2013 mv‡ji g‡a¨
credit officers for better SME credit services. A
†`ke¨vcx GmGgB F‡Yi WvUv‡eR ˆZwi Kiv n‡e| cwi‡ek
country wide SME database system should be
developed within the year 2013. Special attention evÜe Lv‡Z FY m¤cÖmvi‡Y we‡kl bRi †`qv n‡e| GmGgB
should be given to the green sectors. For FY Kvh©µg m¤cÖmvi‡Yi j‡¶¨ evsjv‡`k e¨vsK KZ©„K
extending SME credit, the bank has participated in PvjyK…Z GwWwe Gi wi-dvBb¨vÝ ¯‹x‡g AskMÖnY K‡i FY
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.
viii. Agriculture and Rural Credit viii. K…wl Ges cjøx FY

The Bank's main functions have been centered AMÖYx e¨vs‡Ki cÖavb Kvh©µgmg~n miKv‡ii mvgwMÖK Dbœqb
around financing priority sectors in the line with the iƒcK‡íi AšÍM©Z AMÖvwaKvi LvZmg~‡ni FY cÖ`v‡bi mv‡_
Government's overall development vision.
Agriculture is one of the priority sectors to which
m¤ú„³| K…wl n‡”Q AMÖvwaKvicÖvß LvZmg~‡ni Ab¨Zg
the Bank has been channeling funds since 1977 †hLv‡b e¨vsK 1977 mvj n‡Z FY cª`vb K‡i Avm‡Q| G
with a broader objective of invigorating the sources K…wlLv‡Zi g‡a¨ cïcvjb, grm¨ Pvl Ges wewfbœ cÖKvi
of growth like agriculture including livestock, Drcv`bgyLx K…wl I cjøxFY AšÍf‚©³ i‡q‡Q|
fishery and other off farm activities.
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‡ì
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‡ì 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¤î 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|
Major Rural Credit projects/programmes AMÖYx e¨vsK wjwg‡U‡Wi

of ABL cÖavb cÖavb cjøx FY cÖKí/Kg©m~wP
Crop Loan Programme, Crop Diversification km¨ FY, km¨ eûgyLxKiY FY, ¯^wbf©i FY, cjøx FY
Project, Swanirvar Credit Programme, Rural
Finance Project (RFP), Shashya Gudam Reen
cÖKí (AviGdwc), km¨ ¸`vg FY cÖKí, wPswo Pvl FY
Prokalpa, Shrimp Cultural Programme (General), (mvaviY), Kjv Pvl FY, jeY Drcv`b FY, ¶z`ª
Credit Scheme for Bananas Cultivation, Credit to
Salt Growers, Khudra Uddyog Credit Programme,
D‡`¨vM FY cÖKí, grm¨ Pvl FY (cyKz‡i grm¨ Pvl),
Fisheries Financing Programme (Pond), Avav-wbweo wPswo FY, †mPhš¿ FY,
Semi-Intensive Shrimp Culture Programme, Credit
Programme for Irrigation Equipment, Self
AvZ¥-Kg©ms¯’vbg~jK FY, cjøx M„n wbg©vY FY, cjøx
Employment Programme for the Unemployed cwienY FY, ¶z`ªKvq nuvm gyiMxi Lvgv‡ii Rb¨ FY,
Youth, Credit for Rural House Building, Credit for
Rural Transport, Bank Loan Programme in Small
mvaviY cjøx FY, `vwi`Ö we‡gvP‡b D`¨vbwfwËK dmj
Scale Poultry Farms, General Rurul Credit Drcv`‡b FY, K…wl hš¿cvwZ FY, cvb Pvl FY,
Programme, Horticulture Programme for Poverty
Alleviation, Agricultural Equipment Project, Credit
cÖvYxm¤ú` (Mvfx cvjb, nv‡ji ej`/gwnl µq, Miæ
Scheme for Bettle Cultivation, Cattle, Milking Cow, †gvUvZvRvKiY FY), `vwi`ª we‡gvP‡b QvMj cvjb FY,

Buffalow Purchase and Beef Fattening Credit `vwi`ª we‡gvP‡b †fov cvjb FY, PvKzwii Rb¨ we‡`‡k
Progrmme, Goat Rearing Programme for Poverty
Alleviation, Ram Rearing Programme for Poverty Mg‡b”QyK‡ì FY, K…wl wfwËK cÖKí FY-Gi AvIZvq:
Alleviation, Loan Facility for Persons Seeking Job
Abroad, Agro-based Project Loan which includes- grm¨ Pvl cÖK‡í FY, grm¨ Pvl n¨vPvix/bvm©vix cÖK‡í
Fish Cultivation Project, Fish and Shrimp/Carp
Hatchery/Nursery Project, Dairy Project, Poultry,
FY, †WBix wk‡í FY, †cvwëª, n¨vPvix/bvm©vix wk‡í FY,
Hatchery and Rearing Project, Integrated Farms, mgwš^Z cÖKí FY, wdW wgjm wk‡í FY BZ¨vw`|
Feed Mills etc.
j) Loan Classification and Provisioning T) FY †kªYxweb¨vmKiY Ges cÖwfkwbs

Reduction in the number and value of classified †kªYxweb¨vwmZ F‡Yi wnmve msL¨v Ges F‡Yi cwigvY n«vm
loans and advances has been overriding priority of Kiv I chv©ß ÔcÖwfkbÕ ivLv e¨vs‡Ki GKwU AMÖvwaKvicÖvß
the Bank, along with maintaining a commensurate KvR| G †¶‡Î m‡e©v”P dj cvIqvi Rb¨ wewfbœ D‡`¨vM MÖnY
provision. A range of steps were taken to achieve Kiv n‡q‡Q| c~e©eZx© †kªYxweb¨vwmZ FY Av`v‡qi †¶‡Î
the optimum result. The main focus was on the
wbweo Z`viKx Ges AbyeZx© Kvh©µg †Rvi`vi Kiv n‡q‡Q|
intensive and strict follow-up in respect of recovery
of previous classified and overdue loans along with
bZzb †kªYxweb¨vwmZ F‡Yi m„wó hv‡Z bv nq †mw`‡KI we‡kl
arresting new classification thereof. By the end of bRi †`qv n‡”Q| 2012 mv‡j G ai‡Yi F‡Yi cwigvY
2012, the total classified loan stood at Tk. 5,380.13 ùvwo‡q‡Q 5,380.13 †KvwU UvKv (†gvU FY I AwMÖ‡gi
crore (25.30 percent of total loans and advances). 25.30 kZvsk)|
k) Loan Recovery Activities 2012 U) FY Av`vq Kg©KvÛ 2012

To reduce the amount of classified loans, plans are †kÖYxweb¨vwmZ F‡Yi cwigvY n«vmKi‡Yi j‡¶¨ eQ‡ii
formed aiming at the Head office and grassroots ïiæ‡ZB j¶¨gvÎv wba©viYc~e©K Zv AR©‡b cÖavb Kvh©vjq I
level. Activities are run to achieve the goal upon
setting targets at the beginning of the year. gvV ch©v‡q Kg©cwiKíbv cÖYqb I Z`vbyhvqx Kvh©µg MÖnY
Declaring November 2012 as classified loan Kiv nq| FY Av`vq e„w×i j‡¶¨ b‡f¤î 2012 gvm‡K
recovery month, special activities by 14 teams †kÖYxK…Z FY Av`vq gvm wn‡m‡e †NvlYv K‡i wbqwgZ
comprising senior executives are run alongside the Kvh©µ‡gi cvkvcvwk DaŸ©Zb wbe©vnx I wbev©nxe„‡›ì mgš^‡q
regular activities to accelerate recovery of
14wU wUg MVb K‡i we‡kl Kvh©µg cwiPvjbv Kiv nq|
classified loans. After visiting grassroots level, the
senior executives have issued special directives to b‡f¤î I wW‡m¤î gv‡m Zuviv gvV ch©v‡q Mgb K‡i AÂj I
zonal & branch level for taking effective measures kvLv mg~‡ni †kÖYxK…Z FY Av`v‡q wb‡`©kbv cÖ`vb I Kvh©Ki
for recovering classified loan. Besides, 5 eë¯’v MÖnY K‡ib| G QvovI, Ae‡jvcbK…Z FY Av`v‡qi
non-government debt collection agents have been j‡¶¨ †emiKvwi 5wU cÖwZôvb †WU Kv‡jKkb G‡R›U wn‡m‡e
deployed to recover written-off loans. As a result of
wb‡qvwRZ i‡q‡Q| Dc‡iv³ eë¯’vw` MÖn‡Yi d‡j †Ljvcx
the measures taken, there was a significant
progress in recovering default-loans in the last FY Av`v‡q eQ‡ii †kl ˆÎgvwm‡K D‡jøL‡hvM¨ AMÖMwZ
quarter of the year. mvwaZ nq|
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)
Future Plan for Loan Recovery FY Av`v‡q fwel¨r cwiKíbv

To recover default loans, effective measures taken †Ljvcx FY Av`v‡qi j‡¶¨ weMZ eQ‡ii Kvh©Kix
in the previous year will be in force. Proper steps
c`‡¶cmg~n Ae¨vnZ ivLv n‡e| e„nr †Ljvcx FYmg~n
on case to case basis will be taken in terms of
recovering big default loans. Round the year Av`v‡qi †¶‡Î †Km Uz †Km wfwË‡Z h_vh_ eë¯’v MÖnY Kiv
monitoring, follow-up and supervision will be n‡e| eQie¨vcx gwbUwis, d‡jvAvc I mycviwfkb AviI
stepped up in larger scale. Initiatives targeting the e„w× Kiv n‡e| gvVch©v‡q †hvMv‡hvM e„w×i gva¨‡g FY
grassroots level will be increased to prop up the
pace of loan recovery. Av`v‡q MwZ mÂv‡ii j‡¶¨ c`‡¶c MÖnY Kiv n‡e|
l) Subsidiary Companies of ABL l)AMÖYx e¨vsK wjwg‡U‡Wi mvewmwWqvwi †Kv¤úvwbmg~n

Agrani Bank Limited has care now six subsidiary AMÖYx e¨vsK wjwg‡U‡Wi 100 kZvsk wbR¯^ gvwjKvbvq G
companies at its 100 percent ownership. Two of hver QqwU mvewmwWqvix †Kv¤úvwb i‡q‡Q hvi `yBwU
them are in Bangladesh and four are in abroad
evsjv‡`‡k Ges PviwU we‡`‡k h_v:
which are as follows:
i. Agrani Equity & Investment Limited i. AMÖYx BKz¨BwU GÛ Bb‡f÷‡g›U wjwg‡UW

Agrani Bank Limited started to take part in the AMÖYx e¨vsK wjwg‡UW 23 gvP© 2009 †_‡K weGmBwm n‡Z
capital market operations since it got license from jvB‡mÝ MÖn‡Yi gva¨‡g gv‡P©›U e¨vswKs Kvh©µg ïiæ K‡i|
BSEC on 23rd March 2009. Initially, its operations
cÖv_wgKfv‡e GB e¨vs‡Ki Aax‡b GKwU gv‡P©›U e¨vswKs
were executed under merchant Banking Unit of the
BDwbU wn‡m‡e Gi Kvh©µg cwiPvjbv Kiv nq| 2010
bank. On March 16, 2010, the bank has formed a
mv‡ji 16 gvP© ÔAMÖYx BKy¨BwU GÛ Bb‡f÷‡g›U wjwg‡UWÕ
subsidiary company named ‘Agrani Equity &
Investment Limited’. It started its operation on 15 bv‡g GKwU mvewmwWqvwi †Kv¤cvwb MVb Kiv nq| 2010
June 2010 taking over all the assets and liabilities mv‡ji 15 Ryb n‡Z AMÖYx e¨vsK wjwg‡U‡Wi gv‡P©›U e¨vswKs
of merchant banking unit of Agrani Bank Limited. BDwbU Gi mKj `vq-†`bv I m¤c` AwaMÖnY K‡i AMÖYx
The fundamental aim of Agrani Equity & BKy¨BwU GÛ Bb‡f÷‡g›U wjwg‡UW hvÎv ïiæ K‡i| AMªYx
Investment Limited is: BKy¨BwU GÛ Bb‡f÷‡g›U wjwg‡U‡Wi †gŠwjK j¶¨ n‡jv:
i. to become the market leader in merchant i. cyuwRevRvi Dbœq‡b mwµq AskMÖnY Ges MVbg~jK
banking operations by acting as a market
f‚wgKv cvj‡bi gva¨‡g gv‡P©›U e¨vswKs Kvh©µg
maker & ensure the development of the capital
market by active participation and cwiPvjbvq †bZ…¯’vbxq Ae¯’v‡b DbœxZ nIqv Ges

Professor Dr. Khondoker Bazlul Hoque is presiding the Second Annual General Meeting of Agrani Equity and Invest-
ment Limited
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‡ì 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‡ì †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‡ì g‡a¨ Av¯’v AR©b Kiv|
iv. To boost up the small and medium investors
iv. ¶z`ª I gvSvwi wewb‡qvMKvix‡ì 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 eëmvwqK ˆbwZKZvi gva¨‡g Kvh©µg
business ethics. cwiPvjbv Kiv|
Issue Management Bmy¨ eë¯’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¨ eë¯’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¨ eë¯’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¨ eë¯’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.
Portfolio Management †cvU©‡dvwjI eë¯’vcbv

Agrani Equity & Investment Limited provides AMÖYx BKy¨BwU GÛ Bb‡f÷‡g›U wjwg‡UW evRv‡ii †gŠj
portfolio management services by considering wfwË, mvgwóK A_©bxwZi MwZwewa, evRv‡ii mvwe©K
market fundamentals, macroeconomic trends, AvPiYMZ w`K I m¤¢ve¨Zv we‡kølYc~e©K †cvU©‡dvwjI
overall behavioral factors & prospective analysis. eë¯’vcbv †mev cÖ`vb K‡i|
The company provides following portfolio AÎ cÖwZôvb n‡Z wb‡¤œv³ †cvU©‡dvwjI eë¯’vcbv †mev
management services to the customers: cÖ`vb Kiv nq:
1. Portfolio management 1. †cvU©‡dvwjI eë¯’vcbv
2. Margin loan facilities to the investors 2. wewb‡qvMKvix‡ì 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:
1. Customized instrument designing 1. Kv÷gvBRW BÝUªy‡g›U wWRvBb

2. Placement of equity with various financial 2. wewfbœ Avw_©K cÖwZôv‡bi BKz¨BwU †cøm‡g›U
institutions
3. cÖvB‡fU g~jab msMÖn:
3. Private capital raising:
K) BKz¨BwU
a) Equity
b) Debt
L) FY
c) Hybrid M) nvBweªW
4. Advisory of private placement of securities 4. cÖvB‡fU †cøm‡g›U msµvšÍ civgk© †mev
5. Corporate management advisory 5. cÖvwZôvwbK eë¯’vcbvg~jK civgk© †mev
6. Arranging activities related to trustees for
securities 6. wmwKDwiwUR Gi wel‡q Uªvwó msµvšÍ mnvqZv
7. Arranging credit rating agency related 7. †µwWU †iwUs G‡RwÝ msµvšÍ mnvqZv
activity

ii. Agrani SME Financing Company Limited ii. AMÖYx GmGgB dvBb¨vwÝs †Kv¤úvwb wjwg‡UW
Agrani SME Financing Company Limited was AMÖYx GmGgB dvBb¨vwÝs †Kv¤cvwb wjwg‡UW 2010
registered in the Registerar of Joint Stock m‡bi 27 A‡±vei Zvwi‡L †iwR÷ªvi Ae R‡q›U ÷K
Company on 27 October 2010 which is a 100
percent owned Subsidiary Public Limited †Kv¤úvwb‡Z wbeÜb jvf K‡i hv AMÖYx e¨vsK wjwg‡U‡Wi
Company of Agrani Bank Limited. The Company is 100 kZvsk gvwjKvbvq cÖwZwôZ GKwU mvewmwWqvwi
one of the 30 Non-Banking Financial Institutions cvewjK wjwg‡UW †Kv¤úvwb| eZ©gv‡b †`‡ki 30wU
(NBFIs) currently rendering financial services to
bb-e¨vswKs Avw_©K cÖwZôv‡bi Ab¨Zg GKwU cÖwZôvb
the existing and potential entrepreneurs in
Bangladesh. It is for the development of wnmv‡e †Kv¤úwbwU †`‡ki we`¨gvb D‡`¨v³v Ges
entrepreneurship and small and medium scale m¤¢vebvgq D‡`¨v³v‡ì‡K Avw_©K †mev cÖ`vb Ki‡Q|
labour intensive enterprises to increase the †Kv¤úvwbwU D‡`¨v³v Dbœqb, missing middle Rb‡Mvôxi
income and employment for the missing middle
eligible entrepreneurs with particular emphasis to
Kg©ms¯’vb m„wó I Avq e„w×i j‡¶¨ kÖgwbweo ¶z`ª I
women entrepreneurs in the urban, semi-urban gvSvix D‡`¨vM MÖnY Ges we‡kl K‡i kni, Dckni Ges
and rural areas in the Company’s operational MÖvgxY gwnjv D‡`¨v³v Dbœq‡b ¸iæZ¡c~Y© f‚wgKv cvjb
areas. Ki‡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‡ì 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 AÂ‡ji 20wU kvLv|
• 20 Branches in greater Faridpur district.
• 20 Branches in greater Mymensingh district. • e„nËi gqgbwmsn AÂ‡ji 20wU kvLv|
Type of Enterprises to be Financed FY cÖ`v‡bi LvZmg~n

All viable enterprises under the following sectors wb¤œwjwLZ m¤¢vebvgq LvZmg~‡n FY cÖ`vb‡hvM¨:
are eligible for finance: • ¶z`ª I gvSvwi ai‡Yi K…wl wfwËK Ges K…wl mn‡hvMx
• Small & medium scale agro-based and
wkímg~n †hgb: Lv`¨ cÖwµqvKiY, K…wlRvZ hš¿cvwZ
agro-supporting industries including food
processing and industries manufacturing
I nvwZqvi Drcv`b|
agricultural tools. • ZvuZ I †cvkvK wkí|
• Textile/Garments related enterprises. • KzwUi wkí|
• Cottage industries.
• ¶z`ª †givgZ KviLvbv|
• Small scale repair workshop.
• ¶z`ª MÖvgxY cwienY|
• Small scale rural haulage transport.
• Service organization etc. • wewfbœ †mevg~jK cÖwZôvb|
• Other viable enterprises. • Ab¨vb¨ m¤¢vebvgq cÖKímg~n|
A photo session at the Annual General Meeting of Agrani SME Financing Company Limited held on 24 April 2012
Company’s Capital g~jab KvVv‡gv

Authorized Capital : 500 (Five hundred) crore. Aby‡gvw`Z g~jab : 500 (cvuPkZ) †KvwU UvKv|
Paid-up Capital : 100 (One hundred) crore. cwi‡kvwaZ g~jab : 100 (GKkZ) †KvwU UvKv|

Loan Range FY mxgv
• Minimum Tk. 50,000 and maximum • me©wb¤œœ 50,000 UvKv Ges m‡e©v”P 20,00,000 UvKv|
Tk. 20,00,000. • cÖ‡qvR‡bi gvcKvwV‡Z Ges †Kv¤úvwbi cwiPvjbv
• Loan range can be changed by the Board of cwil‡ì wm×všÍµ‡g FY mxgv cwieZ©b‡hvM¨|
Directors as and when necessary.
my‡ì nvi
Interest Rate
• 14 kZvsk (µgn«vmgvb cÖ×wZ)|
• 14 percent (at declining balance method).
• 14 kZvs‡ki ga¨ †_‡K 2 kZvsk FY loss
• Out of 14 percent, 2 percent loan is being
kept in loss provision fund. provision Lv‡Z ivLv n‡”Q|
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|
Repayment Period FY cwi‡kv‡ai mgqKvj

• Maximum 5 years.
• m‡e©v”P 5 eQi|
Special features of the Company †Kv¤cvwbi Ab¨vb¨ we‡kl w`Kmg~n
• Arrange and conduct free training with
• AvevwmK myweavmn D‡`¨v³v Dbœqb I `¶Zv Dbœqb
residential facility for the entrepreneurs.
• Give priority to the women entrepreneurs
cÖwk¶‡Yi Av‡qvRb Kiv|
while approving loans and imparting training • FY Aby‡gv`b I cÖwk¶Y cÖ`v‡b gwnjv
(skill development training and awareness D‡`¨v³v‡ì‡K AMÖvwaKvi cÖ`vb (`¶Zv e„w× Ges
training). m‡PZbZv m„wói cÖwk¶Y)|
• Engage women development officers for
women entrepreneurs exclusively.
• gwnjv D‡`¨v³v Dbœq‡bi Rb¨ ïaygvÎ gwnjv Dbœqb
• Monitor loan utilization closely to ensure Kg©KZ©v wb‡qvwRZKiY|
recovery of loans timely. • F‡Yi h_vh_ eënvi Ges mgqgZ FY Av`vq
• Help Company to attain sustainability wbwðZKi‡Y Z`viwK Kiv|
gradually.
• Develop savings habit among the rural • ch©vqµ‡g †Kv¤cvwb‡K †UKmB Kiv|
people. • MÖvgxY Rb‡Mvôxi gv‡S mÂ‡qi Af¨vm m„wóKiY|
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‡ì 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 eëmvwqK 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‡ì‡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¤î
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 eë¯’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
eëmvwqK 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‡ì 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|
In year 2012, the company has been able to

2012 m‡b †Kv¤úvwbwUi D‡jøL‡hvM¨ cÖe„w× AR©b Ki‡Z
achieve remarkable growth. The Company
recorded 37.48 percent growth in number of
m¶g n‡q‡Q| mswkøó eQ‡i †Kv¤úvwbwU †iwgU¨vÝ msL¨vq
remittance, 36.05 percent growth in remitted 37.48 kZvsk, †cÖwiZ †iwgU¨vÝ 36.05 kZvsk, ivR¯^
amount, 40.26 percent growth in revenue and Lv‡Z 40.26 kZvsk Ges wbU gybvdvq 31.039 kZvsk
31.39 percent growth in net profit in the reported cÖe„w× AR©b Ki‡Z m¶g n‡q‡Q| 2012 m‡bi 17 wW‡m¤î
year. With the opening of third branch at Jurong Jurong East -G AMÖYx G·‡PÄ nvDR cÖvB‡fU wjwg‡U‡Wi
East on December 17, 2012, the forecasted
Z…Zxq kvLv Pvjyi d‡j 2013 m‡b 50 kZvsk cÖe„w× n‡e
growth for the year 2013 is expected over 50
percent. e‡j Avkv Kiv 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|

September 6, 2005 from Bank Negara Malaysia. AMÖYx †iwg‡UÝ nvDR GmwWGb. weGBPwW. 2005 m‡bi 6
Agrani Remittance House Sdn. Bhd., Malaysia †m‡Þ¤î Zvwi‡L †b‡Miv e¨vsK, gvj‡qwkqv n‡Z jvB‡mÝ
started its mission with a view to transferring the cÖvß nq| gvj‡qwkqvq emevmiZ evsjv‡`kx‡ì AwR©Z UvKv
money quickly and safely from Malaysia to
`ªæZ Ges wbivc‡` †`‡k †cÖi‡Yi D‡Ï‡k¨ †Kv¤úvwbwU hvÎv
Bangladesh by the Bangladeshi expatriates. Since
the inception, it has been trying relentlessly to ïiæ K‡i| ïiæ †_‡KB AÎ †Kv¤úvwb cÖevmx
bring Bangladeshi expatriates under its network for evsjv‡`kx‡ì‡K Gi †bUIqv‡K©i AvIZvq G‡b Zv‡ì
sending their hard earned money conveniently. In KóvwR©Z ê‡`wkK gy`ªv wbwe©‡Nœ †cÖiY wbwðZ Kivi Rb¨
the mean time, this remittance house has remitted wbijm cÖ‡Póv Pvwj‡q hv‡”Q| B‡Zvg‡a¨ AÎ †iwgU¨vÝ
Tk. 158.49 crore in 2010, Tk. 207.15 crore in
nvD‡Ri gva¨‡g 2010 m‡b 158.49 †KvwU UvKv, 2011
2011and Tk. 342.32 crore in 2012 from Malaysia to
Bangladesh. The Company also assists m‡b 207.15 †KvwU UvKv Ges 2012 m‡b 342.32 †KvwU
Bangladeshi expatriates to open bank account UvKv gvj‡qwkqv n‡Z evsjv‡`‡k †cÖiY Kiv n‡q‡Q|
with different branches of Agrani Bank Limited and evsjv‡`‡k AMÖYx e¨vsK wjwg‡U‡Wi kvLvmg~‡n wnmve †Lvjvq
motivate to purchase different types of government †iwgU¨vÝ nvDRwU mn‡hvwMZvmn wewfbœ cÖKvi miKvwi eÛ
bonds. The Remittance House has been operating µ‡q cÖevmx evsjv‡`kx‡ì DØy× Ki‡Q| ïiæ †_‡KB
its remittance business with only one branch in
†iwgU¨vÝ nvDRwU Kzqvjvjvgcyi kn‡i GKwUgvÎ kvLvi
Kuala Lumpur, Malaysia. Recently, Agrani
Remittance house has undertaken massive action gva¨‡g †iwgU¨vÝ eëmv Pvwj‡q Avm‡Q| m¤úªwZ †iwgU¨vÝ
plan for accelerating its remittance business by nvDRwUi eëmv e„w×i j‡¶¨ D™¢vebx wecYb †KŠkj MÖnYmn
implementing innovative marketing strategies and AvMvgx `yB eQ‡ii g‡a¨ gvj‡qwkqv‡Z evsjv‡`kx Aay¨wlZ
opening 20 more new branches of Agrani GjvKvmg~‡n AMÖYx †iwgU¨vÝ nvD‡Ri AviI 20wU bZzb
Remittance House at Bangladeshi concentrated
kvLv †Lvjvi D‡`¨vM MÖnY Kiv n‡q‡Q| AMÖYx †iwg‡UÝ
areas in Malaysia within next two years. Agrani
Remittance House Sdn. Bhd., Malaysia is a nvDR GmwWGb. weGBPwW. GKwU jvfRbK †Kv¤úvwb hv
profitable company and it has completed its 7 AZ¨šÍ mdjZvi mv‡_ weMZ 7 eQi hveZ eëmvwqK
years of operations very successfully. Kvh©µg cwiPvjbv Ki‡Q|
v. Agrani Remittance House Canada Inc. v. AMÖYx †iwgU¨vÝ nvDR KvbvWv AvBGbwm.
Agrani Bank Limited has the plan to open and ê‡`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¤î
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 gnveë¯’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 †Ìqv n‡q‡Q|
The Remittance House would start functioning for AwZmZ¡i KvbvWxq †Kv‡bv e¨vs‡K GKwU eëmvwqK 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`‡mï 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‡ì †Pqvig¨vb, e¨vs‡Ki eë¯’vcbv cwiPvjK Ges
CEO, a Deputy Managing Director and the CEO of wmBI, 1 Rb Dc-eë¯’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¤î
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 eëmv 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‡ì 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‡ì GKRb cwiPvjK,
from the Board of Directors of Agrani Bank Limited,
2 Deputy Managing Directors and one e¨vs‡Ki 2 Rb Dc-eë¯’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 eëmvwqK 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-gnveë¯’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|
m) Help Desk W) †ní †W¯‹

Agrani Bank Limited provides help desk service for AMÖYx e¨vsK wjwg‡UW †ní †W‡¯‹i gva¨‡g MÖvnK‡ì †mev
its customers. Help desk has been designed to cÖ`vb K‡i| †ní †W¯‹wU 24 N›Uv †Lvjv _v‡K| †h †Kvb
remain open for 24 hours. Any problem can be ai‡Yi mgm¨vi cÖv_wgK mgvavb †ní †W‡¯‹i gva¨‡g cÖ`vb
primarily solved by the help desk. Kiv nq|
n) Branch Expansion X) kvLv m¤cÖmviY

The total number of Bank branches presently
eZ©gv‡b e¨vs‡Ki kvLvi msL¨v 889wU hv 2011 m‡b wQj
stands at 889 which was 876 in 2011. It has been
876wU| AvMvgx w`‡b †`‡ki ¸iæZ¡c~Y© me evwYwR¨K
planned to open more branches in commercially
important places of the country in the coming years GjvKvq kvLv †Lvjvi cwiKíbv i‡q‡Q hv‡Z mvaviY
so that the Bank can reach its service to the wider gvbyl‡K myweav †`qv hvq Ges MÖvnK‡ì N‡i N‡i e¨vswKs
group of clients all over the country. As part of
†mev †cuŠ‡Q †`qv hvq| G cwiKíbvi avivevwnKZvq cÖ_g
expansion, the Bank formally applied to
Bangladesh Bank for 30 branches in the first av‡c 30wU kvLv †Lvjvi Rb¨ evsjv‡`k e¨vs‡K B‡Zvg‡a¨
phase. Av‡e`b Kiv n‡q‡Q|

Financial Performance Avw_©K djvdj
a) Total Operating Income K) †gvU Acv‡iwUs Avq
The Bank’s total operating income stood at Tk. 2012 mv‡j e¨vs‡Ki Acv‡iwUs Avq wQj 1,709 †KvwU
1,709 crore in 2012. UvKv|
b) Total Operating Expenditure L) †gvU Acv‡iwUs e¨q

The Bank’s total operating expenditure stood at 2011 mv‡ji 630 †KvwU UvKv †gvU Acv‡iwUs e¨‡qi ¯’‡j
Tk. 702 crore in 2012 as against Tk. 630 crore in 2012 mv‡j e¨vs‡Ki Acv‡iwUs e¨‡qi cwigvY wQj 702
2011 which indicates an increase of Tk. 72 crore †KvwU UvKv| e¨q e„w×i cwigvY 72 †KvwU UvKv| G‡¶‡Î
(i.e. 11.42 percent higher) over the last year. This
cÖe„w× 11.42 kZvsk| GB e¨q e„w×i KviY g~jZ miKvwi
is mainly due to the increase of staff salary in line
with the government policy and new recruitment of
KvVv‡gvi mv‡_ Zvj wgwj‡q †eZb fvZv e„w×, Ges bZzb
officers. Kg©KZ©v wb‡qvM|
c) Net Interest Income M) bxU my` Avq

The Bank’s net interest income is Tk. 398 crore in 2012 mv‡j e¨vs‡Ki bxU my` Av‡qi cwigvY wQj 398 †KvwU
2012. Interest earned on loan is the principal UvKv| my` Av‡qi eo AskB FY n‡Z cÖvß my`| my` e¨‡qi
component of interest income. However, interest
cost of deposits was the main component of
eo AskB n‡jv Avgvb‡Zi Dci cÖ`Ë my`|
interest expenses.
d) Operating Profit N) cwiPvjb gybvdv

During 2012, the Bank’s total operating profit 2012 mv‡j e¨vs‡Ki cwiPvjb gybvdvi (G¨vgU©vB‡Rkb,
before amortization, provision and tax stood at Tk. mwÂwZ Ges Kic~e©) cwigvY wQj 1007 †KvwU UvKv|
1007 crore.
e) Appropriation of Profit O) gybvdvi e›Ub

During the year 2012, the Bank earned Tk. 874 2012 mv‡j e¨vsK Ki I mwÂwZ avh© c~e© gybvdv AR©b K‡i
crore before provision and tax which has been 874 †KvwU UvKv| hvi e›Ub Ae¯’v wb¤œiƒc:
appropriated in the following manner.
Particulars 2012 2011 weeiY 2012 2011
Profit/(Loss) before provision & tax 873.79 1341.31 Ki I mwÂwZ avh© c~e© gybvdv 873.79 1341.31
Provision for loans and advances 2,488.80 436.50 F‡Yi Rb¨ mwÂwZ 2,488.80 436.50
Other provision Ab¨vb¨ mwÂwZ (†evbvmmn) 249.26 170.31
(Including Incentive Bonus) 249.26 170.31
†gvU mwÂwZ 2,738.06 606.81
Total provision 2,738.06 606.81
Ki c~e©eZx© bxU gybvdv (1,864.27) 734.50
Net profit/(loss) before Tax (1,864.27) 734.50
Provision for tax
K‡ii Rb¨ mwÂwZ
Current tax 158.00 425.00 PjwZ Ki 158.00 425.00
Deferred tax (160.22) 59.51 wejw¤^Z Ki (160.22) 59.51
Total provision for tax (2.21) 484.51 K‡ii Rb¨ †gvU mwÂwZ: (2.21) 484.51
Net profit/(loss) after tax (1,862.06) 249.99 Ki cieZx© bxU gybvdv (1,862.06) 249.99
Add: Retained surplus from †hvM: c~e©eZx© eQ‡ii iw¶Z gybvdv 497.83 449.39
the previous year 497.83 449.39
e›Ub‡hvM¨ gybvdv (1,364.23) 699.38
Available for Appropration (1,364.23) 699.38
gybvdv e›Ub
Appropriation of Profit
mswewae× Znwej - 146.90
Statutory Reserve - 146.90
Bonus share Issue 90.12 54.65 †evbvm †kqvi Bmy¨ 90.12 54.65
Retained Surplus (1,454.35) 497.83 DØ„Ë gybvdv (1,454.35) 497.83
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¤î 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:
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

Deductions: ev`:
Valuation Adjustment f¨vjy‡qkb GWRvó‡g›U
(Intangible assets) 664.84 - (Bb‡UbwRej G¨v‡mU) 664.84 -
Investments in Subsidiaries mvewmwWqvwi‡Z
whichare not consolidated 130.77 125.77 wewb‡qvM 130.77 125.77
Benefit of deferred tax Assets 475.35 - †ewbwdU Ad †WdvW© U¨v· G¨v‡mU 475.35
Total Eligible Tier-1 Capital (1,319.54) 1,687.72 -†gvU †Kvi K¨vwcUvj (Uvqvi-1) (1,319.54) 1,687.72
Tier-2 (Supplementary Capital) mvwcø‡g›Uvwi K¨vwcUvj (Uvqvi-2)
General Provision
(UC + SMA + Off B/S exposure A‡kªYxweb¨vwmZ F‡Yi
+ 3% Consumer Finance) 366.47 400.85 Ici cÖwfkb 366.47 400.85
Assets Revaluation Reserves up to 50% 376.60 376.92 G¨v‡mU wi‡fjy‡qkvb wiR©vf 50% 376.60 376.92
Revaluation Reserve for wi‡fjy‡qkb mvicvm Ae G¨vcÖæfW
Approved Securities up to 50% 5.86 13.47 wmwKDwiwU †kqvi 50% 5.86 13.47
Revaluation Reserve for Equity wi‡fjy‡qkb wiRvf© di
Instrument up to 10% - - BKz¨BwU Bb÷ªyª‡g›U 10% - -
Other(Balance of Exchange G·‡PÄ BKzqvjvB‡Rkb
Equalization A/C) 2.63 - GKvD›Um& 2.63 -
Sub-Total 751.56 791.24 Dc-mgwó 751.56 791.24

Deductions: Investments in ev`:mvewmwWqvwi‡Z wewb‡qvM
Subsidiaries which are not consolidated 130.77 125.77 hv Amgwš^Z 130.77 125.77
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
Automation and Modernization A‡Uv‡gkb Ges AvaywbKvqb

Development in ICT Sector Z_¨ Ges †hvMv‡hvM cÖhyw³ Lv‡Z Dbœqb
Information and Communication Technology (ICT) Drcv`bgyLx Ges cÖwZ‡hvwMZvg~jK †`kxq Ges AvšÍR©vwZK
has its direct impact on productivity and
Dfq evRv‡ii Dci Z_¨ Ges †hvMv‡hvM cÖhyw³i (AvBwmwU)
competitiveness in both domestic and international
markets. We are proud that Agrani Bank Limited cÖZ¨¶ cÖfve i‡q‡Q| Avgiv Mwe©Z †h †mB 1968 mvj †_‡K
was the first among the commercial banks in this IBM Mid Range Kw¤úDUvi eënv‡ii gva¨‡g AMÖYx e¨vsK
country to introduce computer-based technology
back in 1968. It started its journey from 1968, using
evsjv‡`‡ki evwYwR¨K e¨vsK¸‡jvi g‡a¨ cÖ_g Kw¤úDUvi
IBM midrange computer. Since then amidst wbf©i cÖhyw³ eënvi ïiæ K‡i| µgea©gvb Zxeª
increasingly fierce competition, the efficiency gains cÖwZ‡hvwMZvi G hy‡M Z_¨cÖhyw³i AwR©Z `¶Zv Ges
and the speed of IT have offered us the opportunity
to open up new sources of advanced, innovative
MwZkxjZvi Av‡jv‡K DbœZZi I bZzb cY¨ Ges †UKmB
products and improved customer services. MÖvnK †mevi bZzb Øvi D‡š§vwPZ n‡q‡Q| AvBwmwU I
Sufficient allocation will be made for hardware and g¨v‡bR‡g›U Bbdi‡gkb wm‡÷‡gi `¶ cÖ‡qvMK‡í
software to ensure complete implementation of our
ambitious plans for the increased use of ICT and nvW©Iq¨vi I mdUIq¨v‡ii cwiKíbv gvwdK c~Yv©½ cÖ‡qv‡Mi
Management Information Systems (MIS). j‡¶¨ chv©ß A_© eivÏ †`qv n‡q‡Q|
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 eënvi 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 eë¯’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
eënvi 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:
a) Inter-branch Transaction Reconciliation. K) AvšÍt kvLv †jb‡`b mgš^qKiY|

b) Foreign Bank Accounts Reconciliation L) ê‡`wkK e¨vs‡Ki mv‡_ wnmve mgš^qKiY (Nostro
(Nostro Accounts). Account)|
c) Consolidation of Statements of Affairs/ M) Avq-e¨q cÖwZ‡e`b cÖ¯‘ZKiY|
Income & Expenditure Statements. N) Kg©Pvix Z_¨ weeiYx cÖ¯‘ZKiY|
d) Personnel System.
O) cÖavb Kvhv©j‡qi Kg©KZv©/Kg©Pvix‡ì †eZb
e) Pay-roll of Head Office Employees etc. cÖ¯‘ZKiY|
f) Inventory Management. P) Bb‡f›Uwi eë¯’vcbv|
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|

Branch Computerization kvLv Kw¤úDUvivqb
Agrani Bank Limited has grown significantly over mv¤úªwZK mg‡q kvLv chv©‡qi Kv‡R Z_¨cÖhyw³i eënv‡i
the years in branch automation. Till date 863 AMÖYx e¨vsK A‡bK GwM‡q‡Q| A`¨vewa LAN wbf©i eªvÂ
branches out of its total 889 branches are
e¨vswKs mdUIq¨vi eënv‡ii gva¨‡g 889wU kvLvi g‡a¨
computerized by using LAN based Branch
Banking Software. These software have been 863wU kvLv‡K Kw¤úDUvivBRW Kiv n‡q‡Q| Gme
supplied by various renowned software vendors of mdUIq¨vi¸‡jv †`‡ki cÖwm× cÖwZôvb KZ…©K mieivnK…Z|
the country. The major functionalities of the branch eªvÂ e¨vswKs mdUIq¨v‡ii cÖavb KvR¸‡jv n‡”Q:
banking software are:
a) General Banking- Deposit, Inland remittance, K) mvaviY e¨vswKs -AvgvbZ, Af¨šÍixY †iwgU¨vÝ,
GL/PL. wRGj/wcGj|
b) Credit- All kinds of commercial loans and staff L) †µwWU - mg¯Í evwYwR¨K FY I Kg©Pvwi FY|
loans.
Most of the banking activities can be carried out G mdUIq¨v†ii gva¨‡g AwaKvsk e¨vswKs Kvhv©ewj m¤úbœ
using these software. Bank provides continuous
Kiv hvq| e¨vs‡K G mdUIq¨vi eënviKvix‡ì‡K wbqwgZ
training for the users of these software. Now, all
the branches are providing computer services with cÖwk¶Y cÖ`vb Kiv n‡”Q| eZ©gv‡b me¸‡jv kvLv‡ZB
internet connectivity along with 'Online Foreign Western Union, MoneyGram, AbjvBb d‡ib
Remittance Payment Software' and Online
†iwgU¨vÝ †c‡g›U mdUIq¨vi Ges B›Uvi‡bU ms‡hvMmn
payment system of Western Union, MoneyGram
etc. capable of making instant payment of foreign chv©ß Kw¤úDUvi †mev cÖ`vb Kiv n‡”Q hvi gva¨‡g `ªæZ
remittance to the beneficiaries and preparing daily d‡ib †iwgU¨vÝ cÖ`vb, cÖwZw`‡bi †÷U‡g›U Ae G¨v‡dqvm©
Statement of Affairs and Profit and Loss Statement cÖ¯‘ZKiY Ges jvf-¶wZi weeiY QvovI Ab¨vb¨ ˆ`bw›`b
besides making other day-to-day
correspondences.
KvR m¤úv`b Kiv n‡”Q|
Online Banking AbjvBb e¨vswKs

IT-based banking has a major role to play in AvR‡Ki G cÖwZ‡hvwMZvg~jK e¨vswKs evRv‡i m¤§vwbZ MÖvnK
rendering improved services to the valued Ges †÷K‡nvìvi†ì‡K DbœZ †mev cÖ`v‡bi †¶‡Î cÖhyw³
customers and stakeholders in today's competitive wbf©i e¨vswKs ¸iæZ¡c~Y© f‚wgKv cvjb Ki‡Q| e¨vs‡Ki wewfbœ
banking environment. The Bank has taken various †mev I Kvhv©ejx A‡Uv‡gk‡bi AvIZvq Avbvi j‡¶¨ wewfbœ
measures for automation of its functions and c`‡¶c MÖnY Kiv n‡q‡Q| G c`‡¶ç‡jvi g‡a¨ ¸iæZ¡c~Y©
services. One of the major steps is installation of c`‡¶cwU n‡”Q m¤ú~Y© mgwš^Zfv‡e AbjvBb †Kvi e¨vswKs
fully integrated online core Banking Solution (T24 mwjDkb (Temenos KZ…©K T24) Pvjy Kiv| 2010 mv‡j
by Temenos). It began in 2010 with two pilot
`ywU cvBjU kvLv wb‡q ïiæ n‡q Zv eZ©gv‡b AviI DbœZZi
branches and now it has progressed further and as
chv©‡q †cŠu‡Q‡Q Ges 2012 mv‡ji wW‡m¤î ch©šÍ 108wU
of December 2012, 108 major branches of the
¸iæZ¡c~Y© kvLvq G mdUIq¨vi eëüZ n‡”Q| D‡jøL¨ †h,
bank are operating using this software. It should be
T24 mdUIq¨viwU wek¦e¨vcx GK b¤î †Kvi e¨vswKs
mentioned that T24 software is rated number one
core banking software all over the world. For this mdUIq¨vi wn‡m‡e mgv`„Z| G D‡Ï‡k¨ cÖavb Kvhv©j‡q
purpose, a state of the art data center equipped cÖ‡qvRbxq nvW©Iq¨vi, WvUv‡eR Kv‡bw±wfwU I Ab¨vb¨
with most modern hardware, database, myweavmn GKwU AZ¨vaywbK WvUv †m›Uvi ¯’vcb Kiv n‡q‡Q|
connectivity and all other facilities was established ZvQvov gnvLvjx‡Z GKwU wWRv÷vi wiKfvwi mvBU ms‡¶‡c
in Head office. Besides, a Disaster Recovery Site DRS fvov †bqv n‡q‡Q †hLv‡b e¨vs‡Ki WvUv †m›Uv‡ii
(DRS) was rented at Mohakhali where a true GKUv ûeû cÖwZiƒc cÖwZôv K‡i ivLv Av‡Q| AbjvBbf~³
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 eënvi 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. ê‡`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
ê‡`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 eë¯’vi
brought under online system. Introduction of T24 AvIZvq Avbv n‡e| T24 mdUIq¨v‡ii gva¨‡g MÖvnK‡ì‡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¨vwì g‡Zv DbœZ †mev cÖ`vb Kiv n‡e|

T 24 Help Desk T 24 †ní †W¯‹
The Bank has also established a Help Desk in IT & AbjvBbf~³ kvLv¸‡jv‡K cÖv‡qvwMK I KvwiMwi mnvqZv
MIS Division to render the operational and cÖ`v‡bi D‡Ï‡k¨ AvBwU I GgAvBGm wefv‡M GKwU †ní
technical support to all the online based branches.
†W¯‹ †Lvjv n‡q‡Q| AbjvBbf‚³ kvLvmg~n Zv‡ì ˆ`bw›`b
Online branches can take instant help while facing
any problem in their day to day software operation Kvh©µg cwiPvjbvq md&UIqvi msµvšÍ †h †Kvb mgm¨vq
from the T24 Day-Night Help Desk. Besides, the T24 wèv ivwÎ †ní †W¯‹ †_‡K ZvrÿwYKfv‡e mnvqZv wb‡Z
branches are getting help from the personnel cv‡i| ZvQvov, Awdm mg‡qi ci Ges QzwUi w`‡b AÎ
designated for performing COB (Close of
Business) at this division after office hour and in
wefv‡Mi COB (†K¬vR Ae weR‡bm) cwiPvjbvi `vwqZ¡cÖvß
their holidays. Kg©KZ©v‡ì KvQ †_‡K mn‡hvwMZv wb‡Z cvi‡Q|
BACH & BEFTN weGwmGBP Ges weBGdwUGb

As part of the plan of Bangladesh Bank for †`‡ki wbKvk cwi‡kva c×wZi A‡Uv‡gk‡bi Rb¨ evsjv‡`k
automation of clearing payment system of the e¨vs‡Ki cwiKíbvi Ask wn‡m‡e G e¨vs‡K evsjv‡`k
country, Bangladesh Automated Clearing House
(BACH) was introduced in the bank. The two
A‡Uv‡g‡UW wK¬qvwis nvDR (weGwmGBP) Pvjy Kiv n‡q‡Q|
components of BACH - Bangladesh Automated weGwmGBP -Gi `yÕwU c×wZ h_v evsjv‡`k A‡Uv‡g‡UW †PK
Cheque Processing System (BACPS) & cÖ‡mwms wm‡÷g (weGwmwcGm) Ges evsjv‡`k B‡j±«wbK
Bangladesh Electronic Fund Transfer Network
dvÛ UªvÝdvi †bUIqvK© (weBGdwUGb) Pvjy i‡q‡Q| †`‡ki
(BEFTN) are active in the bank. A total of 312
branches of the Bank in 70 clearing areas of the 70wU wK¬qvwis Gwiqvq †gvU 312wU kvLv‡K weGwmwcGm-Gi
country have been brought under BACPS AvIZvq mdjZvi mv‡_ Avbv n‡q‡Q| GB c×wZ
successfully. For this purpose, hardware, MICR ev¯Íevq‡bi j‡¶¨ mswkøó cÖwZwU kvLvq nvW©Iq¨vi,
cheque scanner and network connectivity have
been established in each concerned location. For, GgAvBwmAvi †PK ¯‹¨vbvi Ges †bUIqvK© ms‡hvM ¯’vwcZ
BACH operation a sophisticated centralized n‡q‡Q| weGwmGBP -Gi Kvh© cwiPvjbvi j‡¶¨ GKwU wbLyuZ
software has been customized and installed which †m›UªvjvBRW& mdUIq¨vi Pvjy I Kv÷gvBRW& Kiv n‡q‡Q
has facilitated the smooth operation of the system
throughout the country. The other component
hv‡Z K‡i †`ke¨vcx G c×wZi myôz cÖ‡qvM m¤¢e nq|
BEFTN has been introduced in all 889 branches of weBGdwUGb c×wZwU e¨vs‡Ki 889wU kvLvq cÖeZ©b Kiv
the Bank. As per Bangladesh Bank instruction, n‡q‡Q| evsjv‡`k e¨vs‡Ki wb‡`©kbv Abyhvqx GLv‡b ïay
only credit operation has been allowed in it. The †µwWU Acv‡ikbwU Aby‡gvw`Z n‡q‡Q| kxNªB †WweU
debit operation will begin very soon. With the
introduction of automated clearing system, Acv‡ikbwU Pvjy Kiv n‡e| A‡Uv‡g‡UW wK¬qvwis wm‡÷g
customer service has greatly improved. Pvjyi gva¨‡g MÖvnK †mevq e¨vcK DbœwZ mvwaZ n‡q‡Q|
SWIFT myBdU&
Agrani Bank Limited provides SWIFT (Society for Avg`vwbKviK, ißvwbKviK I †iwgU¨vÝ †cÖiK‡ì `¶ †mev
Worldwide Inter-bank Financial Telecommunication) cÖ`v‡bi D‡Ï‡k¨ AMÖYx e¨vsK wjwg‡UW ê‡`wkK gy`ªv wewbgq
facility in its 35 branches to offer services relating to I ê‡`wkK evwY‡Rï 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‡_ï Drm wnmv‡e KvR Ki‡Q| e¨vs‡Ki wb‡qvM, †UÛvi
found on this website. BZ¨vwì 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‡ì
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¯^ eë¯’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|
Introduction of Mobile Banking †gvevBj e¨vwKs Gi cÖeZ©b

Agrani Bank Limited is planning to offer some †gvevBj †m‡Ui gva¨‡g wKQy †jb‡`b myweav cÖ`v‡bi welqwU
transaction facilities through mobile set. As most of AMÖYx e¨vsK wjwg‡U‡Wi cwiKíbvq i‡q‡Q| evsjv‡`‡ki
the population of Bangladesh is un-banked, our AwaKvsk gvbyl e¨vswKs Gi mv‡_ RwoZ bq| GB

bank is going to implement a system to launch bb-e¨vswKs Rb‡Mvôx‡K e¨vswKs Kvh©µ‡gi AvIZvq Avbvi
mobile banking soon to bring non-bank population j‡¶¨ Avgv‡ì e¨vsK Lye kxNªB †gvevBj e¨vswKs c×wZ Pvjy
into the banking channel. With this facility any Ki‡Z hv‡”Q| G myweavi gva¨‡g †gvevBj b¤î _vKv †h
person having a mobile will be able to use his †Kvb e¨w³ †gvevBj b¤îwU e¨vsK GKvD›U wnmv‡e eënvi
number as a bank account. The facilities of mobile Ki‡Z cvi‡e| †gvevBj e¨vswKs-Gi myweav¸‡jv wb¤œiƒc:
banking will be:
K) bM` Rgv|
a) Cash Deposit.
b) Cash Withdrawal. L) bM` D‡Ëvjb|
c) Fund Transfer to another Mobile Account. M) Ab¨ †gvevBj GKvD‡›U Znwej n¯ÍvšÍi|
d) Utility Bill Payment. N) BDwUwjwU wej cwi‡kva|
e) Receive Remittance from Home and
O) †`k-we‡`‡ki †iwgU¨vÝ MÖnY|
Abroad.
P) †eZb cwi‡kva|
f) Salary Payment.
g) Disbursement of Government Allowances. Q) miKvwi fvZvw` weZiY|
h) Merchant Payment. R) gv‡P©›U †jb‡`b|
i) Balance Enquiry. S) e¨v‡jÝ AbymÜvb|
Agrani bank Limited is dedicated to the nation to MÖvnK‡ì 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‡ì 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’.
Introduction of Agent Banking

G‡R›U e¨vswKs cÖeZ©b
Agrani Bank Limited in association with DOER, AMÖYx e¨vsK wjwg‡UW Ô`yqviÕ (DOER) Gi mn‡hvwMZvq
has planned to extend its financial services to e¨vswKs ewnf~©Z A_ev Aí gvÎvq e¨vswKs Ki‡Qb G iKg
unbanked and under banked areas of Bangladesh RbMY‡K G‡R›U ev Kv÷gvi mvwf©m cÖfvBWvi (CSP) Gi
through agents or CSPs (Customer Service gva¨‡g e¨vswKs †mev cÖ`v‡bi GKwU Kvh©µg MÖnY K‡i‡Q hv
Provider) in a bid to achieve ‘Financial Inclusion’ †`‡ki Avw_©K †mevf~w³ Kg©m~wP ev¯Íevq‡b mnvqK n‡e|
goal of the nation. The project would run under the
cÖKíwU evsjv‡`k e¨vsK KZ…©K m¤cÖwZ cÖYxZ ÔG‡R›U
‘Agent Banking Draft Guideline’ that has recently
e¨vswKs WªvdU MvBW jvBbÕ Abymv‡i cwiPvwjZ n‡e| G‡R›U
been formulated by Bangladesh Bank. Agent
Banking model would help to achieve the
e¨vswKs g‡WjwU wb‡¤œv³ KvR¸‡jv Ki‡Z mnvqZv Ki‡e:
following:
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.
Distribution of SEQAEP Stipend SEQAEP Gi Dce„wË weZiY

To inspire the poor and meritorious students from MYcÖRvZš¿x evsjv‡`k miKv‡ii wk¶v gš¿Yvjq Ges
closs 6 to Class 10, Secondary Education Quality wek¦e¨vs‡Ki †hŠ_ A_©vq‡b Secondary Education
and Access Enchantment Project (SEQAEP)
Quality and Access Enhancement Project
jointly financed by ministry of education,
(SEQAEP) bv‡g 6ô n‡Z 10g †kªYx ch©šÍ Mixe I †gavex
Government of People’s Republic of Bangladesh
and world Bank is being conducted since 1993. QvÎQvÎx‡ì wk¶vq DrmvwnZ Kivi GKwU cÖKí 1993 mb
Ministry of education, World Bank and SEQAEP n‡Z cwiPvwjZ n‡”Q| wk¶v gš¿Yvjq, wek¦e¨vsK Ges
authority supervise this project. Besides SEQAEP KZ…©c¶ GB cÖK‡íi Z`viwK K‡i _v‡K|
distributing stipend to the students, different kinds SEQAEP cÖKíwUi gva¨‡g Dce„wË QvovI QvÎ-QvÎx‡ì‡K
of incentive awards and financing the development wewfbœ cÖKvi DÏxcbv cyi¯‹vi cÖ`vb Kiv nq Ges mswkøó
of concerned schools are provided through
¯‹z‡ji Dbœq‡bi Rb¨ A_©vqb Kiv nq|
SEQAEP.
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‡ì‡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 eë¯’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„wË‡fvMx QvÎ-QvÎx‡ì
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‡ì ¯^ ¯^ AvÂwjK Kvh©vj‡qi
money through IBCA to the concerned branches mvnv‡h¨ †cÖiY K‡i hv kvLv n‡Z mivmwi myweav‡fvMx‡ì
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‡ì msL¨v Ges A_©vq‡bi cwigvY e„w×
amount will increase gradually. cv‡e|

Online CIB Reporting AbjvBb wmAvBwe wi‡cvwU©s
MIS Division of the Bank receives previous months e¨vs‡Ki wewfbœ kvLv †_‡K †cÖwiZ c~e©eZx© gv‡mi wmAvBwe
CIB information sent from related branches via Z_¨ AvÂwjK Kvh©vj‡qi gva¨‡g cÖwZ gv‡mi 10 Zvwi‡Li
zonal offices online within the 10th day of the g‡a¨ AbjvB‡b Bbdi‡gkb †UK‡bvjwR GÛ GgAvBGm
month. MIS Division verifies the accuracy of the wWwfk‡b (mv‡eK wcAviGgwW) M„nxZ nq| GB wefvM D³
information and after consolidating the information Z‡_ï mwVKZv hvPvB K‡i cÖ‡qvR‡b Zv ms‡kvabc~e©K
sends to Bangladesh Bank online within the 20th
GKxf~Z K‡i gv‡mi 20 Zvwi‡Li g‡a¨ AbjvB‡b evsjv‡`k
e¨vs‡K †cÖiY K‡i _v‡K| K‡c©v‡iU kvLv¸‡jv mivmwi cÖavb
day of the month. Corporate branches directly
Kvh©vj‡qi Bbdi‡gkb †UK‡bvjwR A¨vÛ GgAvBGm
send CIB information and inquiry forms to MIS
wWwfk‡b wmAvBwe Z_¨ I Bb‡Kvqvwi dg© †cÖiY K‡i _v‡K|
Division in Head office. The number of CIB
Rvbyqvwi n‡Z wW‡m¤î 2012 mg‡q evsjv‡`k e¨vs‡Ki
information received by ABL from Bangladesh
mvf©vi n‡Z GB wefvM KZ…©K AbjvB‡b †gvU 33,457wU
Bank server and sent to related branches from c~Y©v½ wmAvBwe cÖwZ‡e`b msMÖnc~e©K mswkøó kvLvmg~‡n
January 2012 to December 2012 is 33,457. `ªæZZvi mv‡_ †cÖiY Kiv n‡q‡Q|
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|
Audit & Inspection during 2012 2012 m‡b wbix¶v I cwi`k©b

There are four types of audit in Agrani Bank AMÖYx e¨vsK wjwg‡U‡W wb¤œœewY©Z Pvi cÖKv‡ii AwWU we`¨gvb
Limited which are as follows:
i‡q‡Q:
i) External Audit
1) ewnt wbix¶v
ii) Government Commercial Audit

2) miKvix Kgvwk©qvj AwWU
iii) Bangladesh Bank Inspection

3) evsjv‡`k e¨vsK cwi`k©b
iv) Internal Audit & Inspection 4) Af¨šÍixY wbix¶v I cwi`k©b
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
eë¯’vcbv KZ…©c¶ hv‡Z Kvh©Kwi eë¯’v MÖnY K‡i Zv wbwðZ
system. K‡i _v‡K|
The Bank has been coducting 'Risk Based Internal eëmvwqK 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 Bmyï 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:
Annual Audit Plan for Branches/Offices in 2013 Number

Corporate branches 27
Authorized dealer (AD) branches 13
District head quarter branches 49
Branches audited in 2011 310
10% random basis branch of 2012 55
Divisions of head office 13
Circle office 6
Zonal office 30
Issue based audit 15
Corporate branches, twice in a year 6
Divisions of head office, once in a year 6
Total 530

Business Risk Management eëmvwqK SzuwK eë¯’vcbv
By nature, risks are extremely unpredictable. This cÖK…wZMZfv‡eB SzuwK m¤^‡Ü †Kvb fwel¨ØvYx Kiv hvq bv| G
makes it urgent for the Bank to evolve its risk Kvi‡YB e¨vs‡Ki Rb¨ SzuwK n«v‡mi eë¯’vcbv KvVv‡gv
management strategy in a way that best protects _vK‡Z nq hv‡Z †h †Kvb †jb‡`b †_‡K D™¢~Z SzuwK n‡Z
our interests against any insidious transactions. As e¨vsK‡K i¶v Kiv hvq| G Kvi‡Y †K›`ªxq e¨vs‡Ki wb‡`©k
such, the Bank has introduced Risk Management †gvZv‡eK e¨vsK QqwU †¶‡Î SzuwK eë¯’vcbv g¨vby‡qj
Manuals in six areas, according to the instruction
cÖeZ©b K‡i‡Q| G¸‡jv n‡”Q: FY SzuwK eë¯’vcbv, ê‡`wkK
of central bank. These are: Credit Risk, Forex
evwYR¨ eë¯’vcbv SzuwK, m¤ú`-`vq eë¯’vcbv SzuwK,
Management Risk, Asset Liability Management
Af¨šÍixY wbqš¿Y I cwicvjb SzuwK, gvwb jÛvwis SzuwK Ges
(ALM) Risk, Internal Control and Compliance (ICC)
Risk, Money Laundering (ML) Risk and IT Security
AvBwmwU wbivcËv SzuwK| cwieZ©bkxj eëmvwqK cwi‡e‡k
Risk. The Bank recognises the risks and takes eëmv Ki‡Z †M‡j wewfbœ ai‡Yi †h me SzuwKi m¤§yLxb n‡Z
action to manage various risks posed by the nq AMÖYx e¨vsK wjwg‡UW G e¨vcv‡i mRvM †_‡K cÖ‡qvRbxq
ever-changing business environment. Kvh©eë¯’v MÖnY K‡i|
The Bank has established risk management policy SzuwK cÖkg‡bi j‡¶¨ e¨vs‡Ki SuywK eë¯’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 eë¯’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‡ì‡K ÔwmAviwRÕ Gi Ici cÖwk¶Y
making proper lending decision. All credit officers
have been trained and groomed on CRG system, †Ìqv 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 eë¯’v †bqv
downgraded large loan borrowers.
n‡”Q|
b) Foreign Exchange Management Risk L) ê‡`wkK evwYR¨ eë¯’vcbv SzuwK

Foreign exchange risks arise from the variation in †`‡k Ges we‡`‡k we`¨gvb wewbgq nv‡ii Kvi‡Y ê‡`wkK
rates of exchange that prevail at domestic and evwYR¨ SuywK D™¢~Z nq| Znwej eë¯’vcbv wefvM ê‡`wkK
international markets. Fund Management Division
handles the forex and money market operations, gy`ªv eë¯’vcbvi KvR K‡i| m‡ev©”P `¶Zvi mv‡_ Zviv gy`ªv
including treasury function with maximum efficiency. evRv‡i AskMÖnYmn †UªRvwii KvR K‡i|
c) Asset Liability Management Risk M) m¤úwË I `vq eë¯’vcbv SzuwK
The Bank’s Asset Liability Committee (ALCOM) e¨vs‡Ki G¨v‡mU-jvqvwewjwU KwgwUi (G¨vjKg) mfv
continued to sit at its meeting regularly to review wbqwgZ AbywôZ nq| Gme mfvq e¨v‡jÝkx‡Ui Ae¯’v I
both the opportunities and threats to its liquidity Zvi‡jï Ae¯’v Ges GZ`msµvšÍ SzuwK I m¤¢vebv, m¤úwËi
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‡ì 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.
d) Internal Control and Compliance Risk N) Af¨šÍixY wbqš¿Y I cwicvjb SzuwK

Internal Control and Compliance plays a vital role Af¨šÍixY wbqš¿Y I cwicvjb GKwU Avw_©K cÖwZôv‡b
in a financial institution. It is a review process of ¸iæZ¡c~Y© f~wgKv cvjb K‡i _v‡K| GUv n‡”Q cÖwZôv‡bi bw_
operations & records of an organization. Well Ges Kv‡Ri GKwU Z`viK c×wZ| mymsMwVZ Af¨šÍixY
devised internal control ensures that the aims and
wbqš¿Y e¨vs‡Ki j¶¨ I D‡Ïk¨ Ges `xN©‡gqv`x gybvdv AR©b
objectives of the Bank are being met and the bank
achieves long term profitability. In the light of the wbwðZ K‡i| evsjv‡`k e¨vs‡Ki wb‡`©kbv †gvZv‡eK Ges
guidelines of the central bank and based on e¨vs‡Ki AZxZ AwfÁZvi Av‡jv‡K AÎ e¨vs‡Ki wewea
learning from the past, ABL follows risk Kg©Kv‡Ûi ms‡M RwoZ wewfbœ SuywK wPwýZKiY, g~j¨vqb I
management guidelines to identify, evaluate and wbqš¿‡Yi Rb¨ SuywK eë¯’vcbv MvBWjvBb AbymiY Kiv
control risks arising from banking activities. n‡”Q| B‡Zvg‡a¨ e¨vs‡Ki Kvh©vejxi Dci bRi`vwii Rb¨
Accordingly, ABL has already taken effective
Af¨šÍixY wbqš¿Y I cwicvjb wefvM‡K kw³kvjx Ki‡Yi
measures for control and compliance and for
updating existing Internal Control and Compliance j‡¶¨ cÖ‡qvRbxq c`‡¶c MÖnY Kiv n‡q‡Q Ges GB
Risk Manual to strengthen Internal Control and wefv‡Mi g¨vbyqvj nvjbvMv` Kiv n‡q‡Q| e¨vs‡Ki mKj
Comliance Division of ABL. The Bank has already GwW I K‡c©v‡iU kvLv mg~‡n wi¯‹ †eBRW wbix¶v m¤úv`‡bi
started a special program to perform risk based Kvh©µg MÖnY Kiv n‡q‡Q Ges B‡Zvg‡a¨ G Kvh©µ‡gi
audit in all of its AD & Corporate branches. Under AvIZvq †ek wKQy K‡c©v‡iU I GwW kvLvi AwWU m¤úbœ Kiv
this program, a good number of branches has
n‡q‡Q|
been audited.
Internal control is an integral part of an B›Uvibvj K‡›Uªvj GKwU cÖwZôv‡bi eëmvwqK 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 eëmvi 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‡ì‡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

Laundering through Agrani Bank Training Institute cÖwk¶Y †`q| e¨vsK Zvi MÖvnK‡ì Z_¨ (KYC),
(ABTI). The Bank maintains the records of Know
Your Customer (KYC) and Transaction Profile †jb‡`b weeiYx (TP), bM` †jb‡`b weeiYx (CTR),
(TP), Cash Transaction Report (CTR) and m‡›`nRbK †jb‡`b weeiYx (STR, hw` _v‡K), gvwb
Suspicious Transaction Report (STR), if any, and
branch wise list of Anti Money Laundering jÛvwis Kg©KZ©v‡ì bv‡gi ZvwjKv msi¶Y K‡i Ges
Compliance Officers (BAMLCO) are sent to
Zv kvLv wfwËK evsjv‡`k e¨vs‡K †cÖiY K‡i|
Bangladesh Bank.
f) ICT Security Risk P) AvBwmwU wbivcËv SzuwK

For the increased use of ICT it became necessary Z_¨ I KwgDwb‡Kkb cÖhyw³i e¨vcK eënv‡ii Kvi‡Y G
to be more careful to address the risks associated mswkøó wbivcËv SzuwKi wel‡q AwaKZi mZK©Zvg~jK eë¯’v
with ICT security. The bank has formulated
MÖnY AZ¨vek¨K n‡q c‡o‡Q| wbivcËv SzuwK m¤úwK©Z
evsjv‡`k e¨vsK KZ…©K RvwiK„Z cÖæ‡Wbwkqvj MvBWjvBb
well-defined ICT Policy in line with the international
Ges AvšÍR©vwZKfv‡e Abym„Z AvBwmwU bxwZi Av‡jv‡K
best practices and prudential guidelines of AMÖYx e¨vsK wjwg‡UW Kvh©Ki GKwU bxwZ cÖYqb K‡i‡Q|
Bangladesh Bank on ICT security. It has an cÖYxZ bxwZ Abyhvqx mKj eënvwiK ch©v‡q Z_¨ I
implementation manual for users at all levels in KwgDwb‡Kkb cÖhyw³i h_vh_ cÖ‡qvM I eënvi
conformity with the ICT policy. An ICT Audit wbwðZKiYK‡í GKwU ev¯Íevqb g¨vbyqvj mieivn Kiv
Manual has been prepared and is in use for n‡q‡Q| cÖYxZ bxwZgvjvi Av‡jv‡K Z_¨ I KwgDwb‡Kkb
cÖhyw³i h_vh_ eënv‡ii j‡¶¨ GKwU AvBwmwU AwWU
auditing ICT activities of the Bank to assure that
g¨vbyqvj ˆZwi Kiv n‡q‡Q Ges wbix¶KMY Zv h_vixwZ
the policy and the procedures are strictly followed. AbymiY Ki‡Q|
Credit Rating †µwWU †iwUs

In 2011, the Bank appointed Credit Rating evsjv‡`k e¨vs‡Ki wb‡`©kbvbyhvqx e¨vsK 2011 mv‡j †µwWU
Information and Services Limited (CRISL), for
credit rating of the Bank as per directives of
†iwUs Bbdi‡gkb G¨vÛ mvwf©‡mm wjwg‡UW‡K (CRISL)
Bangladesh Bank. The rating company assigned †iwUs Kv‡R wbhy³ K‡i| Zviv e¨vsK‡K `xN©‡gqv‡` ÔGGGÕ
AAA to the Bank in the long run and ST-1 in the
Ges ¯^í †gqv‡` GmwU-1 e¨vsK wnmv‡e g~j¨vwqZ K‡i|
short term. This rating has been done in
consideration of the guarantee of the Government MYcÖRvZš¿x evsjv‡`k miKv‡ii cÖ`Ë M¨vivw›Ug~‡j G †iwUs
of the People’s Republic of Bangladesh being the Kiv nq, KviY miKvi n‡”Q SzuwKgy³ GKwU mË¡v| G ai‡Yi
highest risk-free entity. Financial Institutions rated
in this category have the best quality, offer highest g~j¨vwqZ Avw_©K cÖwZôvb n‡”Q ¸‡Y m‡ev©Ëg, me‡P‡q
safety and have the highest credit quality. wbivc` Ges Zv‡ì i‡q‡Q m‡ev©”P gvbm¤úbœ FY eë¯’v|
However, the Bank's entity rating (as stand alone
GQvov evwYwR¨K e¨vsK wnmv‡eI cÖwZwbqZ e¨vs‡Ki
commercial bank) has been improving over the
years, as will be evident from below: †iwUs-Gi gvb DbœZ n‡”Q hv wb‡¤œ cwijw¶Z n‡”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 eë¯’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 eë¯’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‡ì 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‡ì w`‡q e¨vs‡Ki wbev©nx
Bangladesh Bank, BIBM and Bank’s own experts. Ges Awdmvi‡ì G wel‡q cÖwk¶Y †`qv n‡”Q|
Corporate Governance K‡cv©‡iU Mfb©¨vÝ

The Bank is always committed to adopting highest eëmvwqK mvdj¨ AR©b Kivi D‡Ï‡k¨ AMÖYx e¨vsK me
corporate governance standards for attaining its
mgqB mykvm‡bi m‡e©v”P bxwZgvjv cwicvj‡b
operational goals. The collective role of the Board
of Directors, Managing Director and CEO and the cÖwZkÖæwZkxj| cwiPvjbv cwil`, eë¯’vcbv cwiPvjK
Committees is to ensure excellence in corporate I cÖavb wbe©vnx Ges wbev©nx KwgwU †hŠ_fv‡e mykvm‡bi
governance practices. The activities of the Bank
bxwZgvjv ev¯Íevqb Ki‡Q| ¯^v_©-mswkøó mKj c‡¶i
are always conducted in adherence to highest
possible ethical standards for the best interest of ¯^v_© †`Lvi Rb¨ AMÖYx e¨vs‡K m‡e©v”P bxwZ I Av`k©
the stakeholders. me©`v i¶v Kiv nq|
CSR Activities wmGmAvi Kvh©µg

Agrani Bank Limited is committed to contribute AMÖYx e¨vsK wjwg‡UW wmGmAvi ev mvgvwRK `vqe×Zv
towards social development through its Corporate †cÖvMÖv‡gi AvIZvq mvgvwRK Dbœq‡b Ae`vb ivLvi Rb¨
Social Responsibility (CSR) program. ABL’s ethical
cÖwZkÖæwZkxj| ïaygvÎ gybvdv AR©bB e¨vsKwUi GKgvÎ
standard is not only meant for maximising profit,
rather its vision is to build up a society where D‡Ïk¨ bq| MYgvby‡li mvgvwRK `vwe I AwaKv‡ii cÖwZ
human dignity and rights receive the highest AÎ e¨vsK ¸iæZ¡ cÖ`vb K‡i Avm‡Q| mvgvwRK `vqe×Zvi
consideration and evaluation. Bank’s motto is also gva¨‡g mgvR I ms¯‹…wZi DrKl© mva‡b KvR K‡i hvIqv
to improve the society and its culture by means of
e¨vs‡Ki Ab¨Zg j¶¨| m¤§vwbZ MÖvnK, †kqvi‡nvìvi,
CSR. Its activities are related to the needs of our
valued customers, partners, shareholders and
eëmvwqK Askx`vi Ges me©mvavi‡Yi cÖ‡qvRbxqZvi Dci
communities. AÎ e¨vsK me©`v ¸iæZ¡ w`‡q Avm‡Q|

Category-wise Corporate Social Responsibility 2012 m‡b LvZIqvix e¨vs‡Ki wmGmAvi msµvšÍ Kvh©vejx
(CSR) activities in 2012 are as follows: wb¤œiƒc:
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
Human Resources Management gvbem¤ú` eë¯’vcbv Ges Dbœqb

and Development
Human resources is the real capital of our Bank. gvbem¤ú`B e¨vs‡Ki cÖK…Z m¤ú`| Dbœq‡bi Rb¨
We consider the human recource as a tool for our gvbem¤ú`‡K e¨vsK nvwZqvi wnmv‡e MY¨ K‡i| e¨vsK me
development. We always give due recognition to
the contribution made by the officers and staff mgq Kg©KZ©v I Kg©Pvix‡ì Ae`vb‡K ¯^xK…wZ cÖ`vb K‡i
members. Following corporatization, the Bank’s _v‡K| AMÖYx e¨vsK GKwU †Kv¤úvwb wn‡m‡e iƒcvšÍwiZ
key strategy is to set a new standard towards the
nIqvi ci e¨vs‡Ki †KŠkj n‡”Q gvbem¤ú` Dbœq‡bi mKj
full range of exploration and development of our
human resources. We are attaching much m¤¢vebv Kv‡R jvMv‡bv| ¸Y, `¶Zv, m„RbkxjZv Ges
importance to quality, skill, creativity and †ckv`vwi‡Z¡i Ici e¨vsK AwaKZi ¸iæZ¡ w`‡”Q|
professionalism. Due consideration is given to
dutifulness, merit, seniority and management skill KZ©e¨civqYZv, †gav, †R¨ôZv Ges eë¯’vcbv `¶Zv
at the time of promotion. e¨vs‡Ki c‡`vbœwZi g~j we‡eP¨ welq|
a) Organogram K) mvsMVwbK KvVv‡gv

Corporatization has necesseciated the Bank to †Kv¤úvwb‡Z iƒcvšÍwiZ nIqvi ci e¨vs‡Ki mvsMVwbK
restructure its existing organogram. As such, KvVv‡gvi cwieZ©b Kiv Riæwi n‡q c‡o| G Kvi‡Y we`¨gvb
necessary steps have been taken to redefine the gnveë¯’vcK, Dcgnveë¯’vcK Ges AvÂwjK cÖavb‡ì
portfolios and functional jurisdictions of GMs, Kvh©vejx cybwe©b¨vm Kivi †¶‡Î †ek wKQy c`‡¶c M„nxZ
DGMs and Heads of Zones. nq|
b) HR Planning: L) gvbem¤ú` cwiKíbv:
Recruitment, Promotion and Departure wb‡qvM, c‡`vbœwZ Ges Aemi
Human Resource is the most valuable asset of an gvbem¤ú` GKwU cÖwZôv‡bi me‡P‡q g~jëvb m¤ú`| GKwU
organization. ABL is more conscious about the evwYwR¨K cÖwZôvb wn‡m‡e e¨vsK Zvi mvd‡jï
best utilization of its human resources. The
avivevwnKZv‡K DË‡ivËi AMÖMvgx Kivi j‡¶¨ G welqwU‡Z
success of any organization depends on the
proper posting of right man in right jobs, efficient
¸iæZ¡ cÖ`vb K‡i _v‡K| KviY GKwU cÖwZôv‡bi me‡P‡q
and effective management of the human ms‡e`bkxj I wµqvkxj Dcv`vb n‡jv gvbem¤ú` Z_v Gi
resources. HR Planning Division is doing some †jvKej| cÖwZôv‡bi me©vwaK Kj¨v‡Y h_v_© e¨w³i Rb¨
work in the name of human resource mwVK Kg©‡¶Î wbe©vP‡bi KvRwU gvbem¤ú` eë¯’vcbvi
management. The basic work of HR Planning Ask| e¨vs‡Ki eëmvwqK †KŠk‡ji mv‡_ m½wZ †i‡L
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‡ì 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` eë¯’vcbv msµvšÍ wewfbœ
information system and to verify the freedom bxwZgvjv ˆZwi, gyw³hy× gš¿Yvjq †_‡K Kg©Pvix‡ì
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|
HR information system gvbem¤ú` Z_¨ eë¯’vcbv

There are 13,890 employees in Agrani Bank AMÖYx e¨vsK wjwg‡U‡W eZ©gv‡b 13,890 Rb
Limited. If the management desires to check the wbev©nx/Kg©KZv©/Kg©Pvix wb‡qvwRZ i‡q‡Qb| G mKj
information at a glace of an employee, they can get Ggcøqx‡ì mvgMÖxK Z_¨wPÎ G wWwfk‡bi gva¨‡g me©`v
it easily. HR information is becoming updated Avc‡WU Kiv n‡”Q| cÖ‡qvR‡bi mgq KZ…©c¶ †h †Kvb
every day through HR Division. Kg©Pvixi Z_¨wPÎ Lye mn‡R †c‡Z cv‡ib|
HR Action plan for 2013 gvbem¤ú` Kg©cwiKíbv 2013
• To fill up the vacant post through promotion and • AMv©‡bvMÖv‡g m„ó k~b¨ c`¸‡jv c~i‡Yi Rb¨ c‡`vbœwZ
direct recruitment, by which bank can maintain I mivmwi wb‡qv‡Mi gva¨‡g c~iY Kiv n‡e hv‡Z
its productivity & service standard.
†mevi gvb I Kv‡Ri avivevwnKZv eRvq _v‡K|
• To ensure the essential manpower at lower
level & mid level for running the banking • e¨vswKs Kvh©µg wbwe©‡Nœ cwiPvjbvi Rb¨ wb¤œœ Ges
activities smoothly. ga¨g ¯Í‡i cÖ‡qvRbxq Rbej wbwðZ Kiv|
Chairman of ABL Dr. Khondoker Bazlul Hoque inaugurating a Foundation Course for Probationary Officers at
Agrani Bank Training Institute in Dhaka

• To ensure the right man in right place in right • †hvM¨ †jvK‡K h_vmg‡q h_vh_ ¯’v‡b c`vqb Kiv
time which would help to achieve goals. hv‡Z e¨vs‡Ki wewfbœ j¶¨gvÎv AR©‡b mnvqK nq|
• To settle quickly the unsettled cases of
• `vex wb¯úwËi A‡c¶vq _vKv †KBm¸‡jv `ªæZZvi
retirement benefit.
• A four years term manpower planning and mv‡_ wb®úbœ Kiv|
organogram (2012-15) has been approved by • 4 ermi †gqv`x Rbej cwiKíbv I AMv©‡bvMÖvg
the Board of Directors as on 28.11.2012. Many (2012-15) G m„óc`¸‡jv c‡`vbœwZ I wb‡qv‡Mi
posts have been increased in every grades to
gva¨‡g c~iY Kiv Ges GKBmv‡_ AMv©‡bvMÖvg
create opportunities for promotion &
recruitment. Management has planned to cÖYq‡bi D‡Ïk¨ Abyhvqx mKj ÔGÕ †MÖW I †Rjv
depute AGM as branch head in every 'A' grade m`‡ii cÖavb kvLv¸‡jvq mnKvix gnveë¯’vcK‡ì
& district headquarter branches. kvLv cÖavb wn‡m‡e c`vqb Kiv|
c) Training and Development M) cÖwk¶Y I Dbœqb

Training is a proven instrument for human ÔcÖwk¶YÕ-GKwU cÖwZôv‡bi ÁvbwfwËK Kg©xevwnbx
resources development. It presents a prime wewbg©v‡Yi †kÖô my‡hvM| DbœZ cÖwk¶Y KvVv‡gv I Kg©m~wP
opportunity to enhance the knowledge base of all cÖwZôv‡bi AwfÁZv mg„× I Ávbwbf©i Kg©x M‡o †Zvjvi
employees. A structured training and development
wbðqZv weavb K‡i| G `„wófw½‡Z 1976 m‡b AMÖYx e¨vsK
program ensures that employees have a
consistent experience and background †Uªwbs Bbw÷wUDU (GwewUAvB) cÖwZwôZ nq| cÖwZôvjMœ
knowledge. With this point of view, Agrani Bank †_‡K A`¨vewa GwewUAvB AZ¨šÍ `vwqZ¡kxjZvi mv‡_
Training Institute (ABTI) was established in 1976 mg‡qvc‡hvMx cÖwk¶Y Kg©m~wP wba©viY, hy‡Mvc‡hvMx
and since then ABTI is entrusted with the Z_¨wfwËK welq wbe©vPb I AšÍf~©³KiY, myk„sLj cVb
responsibility of designing course curriculum, wbN©›U I gvbm¤úbœ cvV¨ Dcv`vb cÖYqb Ges Zv ev¯Íe cÖ‡qvM
reading materials, and course contents for
I wbqwgZ Abykxj‡bi gva¨‡g AÎ e¨s‡Ki wbevn©x, Kg©KZ©v
conducting training for the purpose of enhancing
professionalism and administrative efficiency of
I Kg©Pvix‡ì †ckvMZ I cÖkvmwbK `¶Zv e„w×i j‡¶¨
the executives and officers of the bank. wbijm cÖqvm Ae¨vnZ †i‡L‡Q|
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‡ì 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‡ì 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 eë¯’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 eë¯’vcbvÕ kxl©K
workshops related to risk management were
wewfbœ cÖwk¶Y Kg©kvjvi Av‡qvRb K‡i, hv wb¤œiƒct
conducted:

Moreover, ABTI has organized the following GQvovI, GwewUAvB AbjvBb e¨vswKs I Z_¨cÖhyw³ msµvšÍ
workshops related to Online Banking & Information wb‡¤œv³ cÖwk¶Y Kg©kvjvmg~n Av‡qvRb K‡it
Technology:
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‡ì 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‡ì 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 eë¯’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‡ì 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|
d) Budget for Training N) cÖwk¶‡Yi Rb¨ ev‡RU

In the year 2012, the Bank allocated a total of Tk. 2012 mv‡j e¨vsK Zvi wba©vwiZ Kg©x‡ì cÖwk¶‡Yi Rb¨
2.98 crore for the training of the targeted 2.98 †KvwU UvKv ev‡RU K‡i‡Q|
employees.
Contribution to the National Exchequer RvZxq ivR¯^ Lv‡Z Ae`vb

The Bank pays income taxes regularly on its e¨vsK Zvi Av‡qi Ici wbqwgZ AvqKi cwi‡kva K‡i
income. It also deducts income tax, value added
_v‡K| e¨vs‡Ki wewfbœ ai‡Yi cwi‡kva ev mvwf©m cÖ`v‡bi
tax and excise duty at source as per law from
various payments and services and deposits the mgq AvBbvbyhvqx AvqKi, g~j¨ ms‡hvRb Ki Ges AveMvix
same to the national exchequer. ABL pays tax on ïé KZ©b K‡i Zv miKvwi †KvlvMv‡i Rgv Kiv nq| e¨vsK
behalf of its employees. Total payments to the
national exchequer during 2012 and 2011 are Zvi Kg©x‡ì c‡¶ AvqKi cwi‡kva K‡i _v‡K| 2012 Ges
shown below: 2011 mv‡j RvZxq ivR¯^ Lv‡Z Rgvi cwigvY wb¤œiƒc:
Contribution to the National Exchequer Taka in Crore
Particulars

Contribution to the National Economy RvZxq A_©bxwZ‡Z f‚wgKv
The Bank plays an important role in the MÖvgxY A_©bxwZi Dbœq‡b e¨vsK ¸iæZ¡c~Y© f‚wgKv cvjb
development of rural economy. It has got 889
branches across the country. The Bank operates Ki‡Q| cÖZ¨šÍ AÂjmn mviv‡`‡k e¨vs‡Ki 889wU
many branches in the remote areas to provide the kvLv Av‡Q| A‡bK¸‡jv kvLv e¨vs‡Ki Rb¨
banking services to the rural people, though
operations of those branches are not financially A_©‰bwZKfv‡e AbyK‚j bq ZviciI cÖZ¨šÍ AÂ‡ji
viable to the Bank. It also plays an important role in MÖvgxY gvbyl‡ì †mev cÖ`v‡bi j‡¶¨ kvLv¸‡jv
reducing unemployment problem by way of
participating in different employment generation cwiPvwjZ n‡”Q| †eKvi mgm¨v wbim‡b e¨vsK ¸iæZ¡c~Y©
activities. At the end of 2012, the total number of fywgKv ivL‡Q| 2012 mv‡ji †k‡l e¨vs‡Ki gvbem¤ú`
employees stood at 13,890 of which 9,917 were
officers and 3,973 were staff members. Since its wQj 13,890 Rb, hvi g‡a¨ 9,917 Rb Awdmvi Ges
beginning, the Bank has been highly active in 3,973 Rb ÷vd| cÖevwm evsjv‡`kx‡ì DcvR©bK…Z
remittance operations to facilitate disbursement of
remittances received from Bangladeshi wage gy`ªv MÖnY Kivi Kv‡R ïiæ †_‡KB e¨vsK ê‡`wkK gy`ªv
earners working abroad. The remitted money can Kvh©µg Pvwj‡q Avm‡Q| 24 N›Uvi g‡a¨ †cÖwiZ
now be deposited to the beneficiaries’ account
within maximum 24 hours. The introduction of ê‡`wkK gy`ªv †`‡ki myweavMÖnYKvixi wnmv‡e Rgv nq|
on-line distribution of remittances has generated AbjvBb weZiY c×wZi cÖPjb cÖevmx evsjv‡`kx
much enthusiasm among the expatriate
Bangladeshi workers. Kgx©‡ì g‡a¨ wecyj Drmvn hywM‡q‡Q|
Outlook for 2013 m¤¢vebvi 2013

In spite of tremendous competitions and Zxeª cÖwZ‡hvwMZv Ges bvbvwea P¨v‡jÄ _vKv m‡Ë¡I e¨vsK
challenges, the Bank has made progress in almost cÖvq mKj ¸iæZ¡c~Y© †¶‡ÎB DbœwZ Ki‡Z m¶g n‡q‡Q|
all spheres of business. To meet the challenges
e¨vsK G mKj cÖwZ‡hvwMZv Ges P¨v‡jÄ †gvKvwejvq
and to stay competitive, it has upgraded the skills
of its workforce and to introduce automation where Kgx©‡ì `¶Zv e„w× K‡i Ges †hLv‡b hZUv m¤¢e
possible, in its operation. It will continue to focus AvaywbKvqb K‡i e¨vswKs Kvh©µg Pvwj‡q hv‡”Q| e¨vsK
on achieving steady growth, by upgrading the m¤úwËi ¸YMZgvb Dbœqb, D”PZi my` Avq, DbœZZi †mev
quality of assets, augmenting interest and I Kg© cwiPvjbvi gva¨‡g Zvi eëmvi cÖe„w× AR©‡b `„pZvi
rendering quality service and operation.
mv‡_ GwM‡q hv‡e|
The bank will constantly persuit the policies of `¶ Rbej, eëmvwqK mykvmb I SzuwK eë¯’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 eëmv, †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|
Preparation of Financial Statements wnmve cÖ¯‘ZKiY

The financial statements, prepared by the Bank in evsjv‡`k GKvDw›Us ÷vÛvW© (weGGm), evsjv‡`k
accordance with the Bangladesh Accounting wdbvbwmqvj wi‡cvwU©s ÷vÛvW© (weGdAviGm) Ges
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| eëmvwqK 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|
Dividend Declaration jf¨vsk †NvlYv

Considering the Capital Adequacy Requirement e¨vs‡Ki fwel¨r K¨vwcU¨vj G¨vwW‡Kv‡qwm wi‡Kvqvi‡g›U
(CAR), the Board of Directors did not recommend (CAR) we‡ePbvq †i‡L cwiPvjbv cwil` KZ…©K 2012
any cash dividend for the year 2012. mv‡ji Rb¨ †Kvb bM` jf¨vsk cÖ`v‡bi mycvwik Kiv nqwb|
Annual General Meeting evwl©K mvaviY mfv

Sixth Annual General Meeting of the Bank will be e¨vs‡Ki 6ô evwl©K mvaviY mfv 6 A‡±vei 2013 Zvwi‡L
held on October 6, 2013 in Dhaka. XvKvq AbywôZ n‡e|
Appointment of Auditors wbix¶K‡ì wb‡qvM

ACNABIN Chartered Accountants and GKbvweb, PvU©vW© GKvD›U¨v›Um Ges nvIjv`vi BDbym G¨vÛ
HOWLADER YUNUS & Co., Chartered
†Kvs, PvU©vW© GKvD›U¨v›Um, MZ wZb eQi hver GKbvMv‡o
Accountants have served as the external Auditors
of the Bank for the consecutive three years ending e¨vs‡Ki ewntwbix¶‡Ki KvR K‡i‡Q| evsjv‡`k e¨vs‡Ki
31 December 2012. As per Bangladesh Bank’s wbqgvbymv‡i Zviv Avi cybtwb‡qvM‡hvM¨ bq| h_vixwZ
guidelines they are not eligible for re-appointment.
Accordingly, appointment of external auditors is ewntwbix¶K wb‡qv‡Mi cÖwµqv Pj‡Q| cieZx© evwl©K mvaviY
under process. Two new audit firms from among mfvq evsjv‡`k e¨vs‡Ki ZvwjKv †_‡K ÔGÕ K¨vUvMwif‚³
the ‘A’ category audit firms enlisted by Bangladesh
`yÕwU AwWU dvg©‡K cieZx© eQ‡ii Rb¨ bZzb wbix¶K
Bank will be appointed in the upcoming AGM for
the next accounting year. wn‡m‡e wb‡qvM Kiv n‡e|
Acknowledgements K…ZÁZv ¯^xKvi

The success of the Bank during the year under eZ©gvb eQ‡i e¨vsK †h mvdj¨ AR©b K‡i‡Q Zv wewfbœ
review is mainly attributable to the support and
chv©‡qi †÷K‡nvìvi‡ì Ae`vb Qvov m¤¢e n‡Zv bv|
cooperation from the varied group of stakeholders.
We gratefully acknowledge the support provided e¨vs‡Ki mv‡_ m¤úK© `„pKi‡Y †hme mš§vwbZ MÖvnK
by all valued customers who have been with us in AvšÍwiK wQ‡jb cwil` Zvu‡ì cÖwZ K…ZÁ| cwil` e¨vs‡Ki
the course of our journey. We also place on record
c„ô‡cvlK, ïfvbya¨vqx, miKvi, evsjv‡`k e¨vsK, R‡q›U
our thanks and gratitude to the patrons,
well-wishers, Government of Bangladesh, ÷K †Kv¤úvwb I dvg© mg~‡ni †iwR÷ªvi - mKj‡K AvšÍwiK
Bangladesh Bank and Registrar of Joint Stock abëv` Ávcb Ki‡Q e¨vs‡Ki Awfó j¶¨ AR©‡b wbišÍi

Companies and Firms for their continued support mg_©b I mn‡hvwMZv cÖ`v‡bi Rb¨| mgqgZ wbix¶v m¤úbœ
and co-operation . We are also thankful to
Kivi Rb¨ cwiPvjbv cwil` †gmvm© GKbvweb, PvU©vW
ACNABIN Chartered Accountants and Howladar
Yunus & Co., Chartered Accountants, the auditors G¨vKvD›U¨v›Um Ges nvIjv`vi BDbym GÛ †Kvs, PvU©vW
of the Bank, for their timely completion of audit of
Financial Statements.
G¨vKvD›U¨v›Um‡K abëv` Rvbv‡”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` abëv` 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 abëv` 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‡ì‡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|
For and on behalf of the Board of Directors

cwiPvjbv cwil‡ì c¶ †_‡K
Khondoker Bazlul Hoque, PhD L›`Kvi eRjyj nK, wcGBPwW

Chairman
†Pqvig¨vb
130
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.
Meetings of the Board during 2012

During 2012, 48 Board meetings were held. Since the Board was dissolved and new board was formed in the month of
December 2012, the number of Board meetings held in the year 2012 by previous Board of directors (46 meetings) and
new Board of directors (2 meetings) has been shown in the following two tables titled Table-1 and Table-2 separately:
Table-1: meetings attended by the old Board

Date of Number of
Sl. No. Name of Directors Position
appointment meetings attended
01. Khondoker Bazlul Hoque, PhD Chairman 09.09.2009 45
02. Ranjit Kumar Chakraborty Director 13.12.2006 38
03. Shekhar Dutta Director 09.09.2009 37
04. Nagibul Islam Dipu Director 09.09.2009 35
05. Engineer Md. Abdus Sabur Director 09.09.2009 36
06. Barrister Zakir Ahammad Director 09.09.2009 35
07. Shahzada Mohiuddin Director 09.09.2009 34
08. Abduz Jahir Chowdhury (Sufian) Director 14.09.2009 13
09. K.M.N. Manjurul Hoque Lablu Director 14.09.2009 33
10. A.K. Gulam Kibria, FCA Director 24.09.2009 43
11. Luna Shamsuddoha Director 24.09.2009 27
12. Syed Bazlul Karim, BPM Director 22.10.2009 32
13. Sayed Abdul Hamid, PhD, FCA Managing 20.04.2008 46

Director & CEO
Table-2: meetings attended by the new Board

Date of Number of
Sl. No. Name of Directors Position
appointment meetings attended
01. Khondoker Bazlul Hoque, PhD Chairman 05.09.2012 02
02. Arastoo Khan Director 24.12.2012 02
03. A.K. Gulam Kibria, FCA Director 06.09.2012 02
04. Engineer Md. Abdus Sabur Director 20.12.2012 02
05. Niaz Rahim Director 20.12.2012 on leave
06. Advocate Balaram Podder Director 20.12.2012 on leave
07. Prof. Dr. Md. Abdur Rouf Sardar Director 20.12.2012 02
08. Shameem Ahsan Director 20.12.2012 02
09. Md. Altaf Hossain Molla Director 20.12.2012 02
10. A B M Kamarul Islam Director 20.12.2012 02
11. Hasina Newaaz Director 20.12.2012 02
12. Sayed Abdul Hamid, PhD, FCA Managing
11.07.2011 02
Director & CEO
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.
Chairman of the Board and Managing Director & CEO

The Chairman of the Board and Managing Director and CEO of the Bank are two separate individuals. The Chairman is
Dr. Khondoker Bazlul Hoque and Managing Director and CEO is Dr. Syed Abdul Hamid.
Role of the Board of Directors

The Board plays a decisive role in the total affairs of the bank. For the overall growth of the bank, the Board delivered
important directives and guidelines in all major areas to achieve its objectives. The Board of Directors mainly deals
with formulation of business policies, administrative policies, approval of large credit proposals, rescheduling of loans,
remission of interest, annual budget and audited accounts of the bank. During the period under review, the Board of
Directors took important decisions on different administrative and policy matters that helped the bank to achieve its
desired goal.
Internal Control and Compliance

The Board is responsible for ensuring an efficient internal control system and for taking appropriate steps to safeguard the
assets of the bank and for preventing and detecting fraud and other irregularities. Audit Manual and Audit Implementation
Manual introduced by the Bank are being followed to ensure proper internal control. Through the Audit Committee, the
Board reviews the assessed risks and the internal control for the period under review.
Business Risk Management

It is important for the Bank to evolve its risk management strategy in a way that our interests against any insidious
transactions are best protected. According to the instruction of Central Bank, the bank has introduced Risk Management
Manuals approved by the board. The bank has established a structured framework for risk management. A separate
division of the bank named Core Risk Management & Basel-II Implementation Division established on 19.05.2011 as per
instruction of Bangladesh Bank, has been working rigorously to overcome the challenges of core risk.
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.
Board Audit Committee (Old Board)

The Audit Committee formed on 28.06.2011 which consists of 5 members. All the members of the Committee are non-
executive directors. The name of the members of Audit Committee along with their status are mentioned below:
Status Status Date of Number of
Sl. No. Name of Members
in the bank in the committee appointment meetings attended
1. Ranjit Kumar Chakraborty Director Chairman 13-12-2006 8
2. Shekhar Dutta Director Member 09-09-2009 8
3. Nagibul Islam Dipu Director Member 09-09-2009 7
4. Engr. Md. Abdus Sabur Director Member 09-09-2009 4
5. A.K. Gulam Kibria, FCA Director Member 24-09-2009 12
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:
Status Status Date of Number of

Sl. No. Name of Members
in the bank in the committee appointment meetings attended
1. Ranjit Kumar Chakraborty Director Chairman 13-12-2006 6
2. Khondoker Bazlul Hoque, PhD Chairman Member 09-09-2009 1
3. A.K. Gulam Kibria, FCA Director Member 24-09-2009 5
4. Syed Bazlul Karim, BPM Director Member 22-10-2009 1

Role of the Board Audit Committee
The Board Audit Committee has been playing a vital role in strengthening internal control and compliance functions of the
bank. It ensures all sorts of co-operation between the management and the ultimate supervisory authority – the Board
of Directors .The Committee identifies various risk factors that arise from the business activities of the bank, through
periodical review of the audit reports to ensure safe, sound and disciplined banking operations. Besides, the Committee
takes appropriate initiatives to prepare risk-based audit planning, reduce the number of objections of the same nature
raised by internal audit by categorizing them according to the nature of objections and re-defining them as serious and
very serious objections.
Role and function of Audit and Inspection Division

The Audit and Inspection Division plays a vital role to ensure proper internal control over the Bank’s activities. The
Division plays its roles to ensure whether internal controls are well established and operates properly. It works to ensure
that the activities of the bank are being carried out in accordance with the applicable rules and regulations of Bangladesh
Bank, Bank Companies Act 1991, Companies Act 1994 and internal rules, regulations and policies of the bank.
Role of Internal Control and Compliance Division (ICCD)

The Internal Control and Compliance Division deals with four types of audit objections:
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
Compliance Status Explanation

Sl.
Particulars Non for non
No. Complied compliance
Complied
1. Responsibilities and authorities of the Board of

Directors
(a) Work-planning and strategic management
(i) The Board shall determine the objectives and goals and to this
end shall chalk out strategies and work-plans on annual basis.
It shall specially engage itself in the affairs of making strategies √
consistent with the determined objectives and goals and in the
issues relating to structural change and reorganization for
enhancement of institutional efficiency and other relevant policy
matters. It shall analyze/monitor at quarterly basis the development
of implementation of the work plans.
(ii) The Board shall have its analytical review incorporated in the
Annual Report as regard the success/failure in achieving the
business and other targets as set out in its annual work-plan and
shall apprise the shareholders of its opinions/ recommendations √
on future plans and strategies. It shall set the Key Performance
Indicators (KPIs) for the CEO and other senior executives and
have it evaluated at times.
(b) Lending and risk management
(i) The policies, strategies, procedures etc. in respect of appraisal
of loan/investment proposal, sanction, disbursement, recovery,
reschedulement and write -off thereof shall be made with the
Board's approval under the purview of the existing laws, rules
and regulations. The Board shall specially distribute the power of
√
sanction of loan/investment and such distribution should desirably
be made among the CEO and his subordinate executives as
much as possible. No director, however, shall interfere, directly or
indirectly, in the process of loan approval.
(ii) The Board shall frame policies for risk management and
get them complied with and shall monitor at quarterly basis the √
compliance thereof.
(c) Internal control management
The Board shall be vigilant on the internal control system of the
Bank in order to attain and maintain satisfactory qualitative √
standard of its loan/investment portfolio. It shall review at
quarterly basis the reports submitted by its Audit Committee
regarding compliance of recommendations made in internal and
external audit reports and the Bangladesh Bank inspection reports.

Sl.
Particulars for non
No. Non compliance
Complied
Complied
(d) Human resources management and development

i) Policies relating to recruitment, promotion, transfer, disciplinary
action and punitive measures, human resources development etc.
and Service Rules shall be framed and approved by the Board. The
Chairman or the Directors shall in no way involve themselves or
interfere into or influence over any administrative affairs including
recruitment, promotion, transfer and disciplinary measures as
executed under the set Service Rules. No member of the Board √
of Directors shall be included in the selection committees
for recruitment and promotion to different levels. Recruitment
and promotion to the immediate two tiers below the CEO shall,
however, rest upon the Board. Such recruitment and promotion
shall have to be carried out complying with the Service Rules.
(ii) The Board shall frame the policies and procedures for Bank’s
purchase and procurement activities and shall accordingly
approve the distribution of power for making such expenditures.
The maximum possible delegation of such power shall rest on √
the CEO and his subordinates. The decision on matters relating
to infrastructure development and purchase of land, building,
vehicles etc. for the purpose of Bank’s business shall, however, be
adopted with the approval of the Board.
(e) Financial management
(i) The annual budget and statutory financial statements shall
finally be prepared with the approval of the Board. It shall at √
quarterly basis review/ monitor the positions in respect of Bank’s
income, expenditure, liquidity, non-performing asset, capital base
and adequacy, maintenance of loan loss provision and steps taken
for recovery of defaulted loans including legal measures.
(ii) The Board shall frame the policies and procedures for Bank’s
purchase and procurement activities and shall accordingly
approve the distribution of power for making such expenditures.
The maximum possible delegation of such power shall rest on √
the CEO and his subordinates. The decision on matters relating
to infrastructure development and purchase of land, building,
vehicles etc. for the purpose of Bank’s business shall, however, be
adopted with the approval of the Board.
(f) Formation of supporting committees Board found

it prudent
For decision on urgent matters an Executive Committee, whatever √ √ to transact
name called, may be formed with the Directors. There shall be no Audit Executive all relevant
committee or sub-committee of the Board other than the Executive Committee Committee issues in the
Committee and the Audit committee. No alternate director shall be full Board
included in these committees. instead of
Executive
Committee
(g) Appointment of CEO
√
The Board shall appoint a competent CEO for the Bank with the
approval of the Bangladesh Bank.
136
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.

Directors’ Statement
of
Responsibilities
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
The Audit Committee of the Board was duly constituted

by the Board of Directors of the Bank in accordance
with BRPD circular No.12 dated 23 December 2002 of
Bangladesh Bank. The Committee has been playing a
vital role in maintaining an efficient and effective banking
system. It ensures all sorts of co-operation between the the Bangladesh Bank inspection team, internal auditors
management and the ultimate supervisory authority - the and external auditors.
Board of Directors. The Committee identifies various risk
factors that arise from the business activities of the Bank. Activities during the year
During the year 2012, the Committee carried out the
Role of the Committee following activities:
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

AUDITORS' REPORT
TO THE SHAREHOLDERS OF AGRANI BANK LIMITED
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.
Management Responsibilities for the Financial Statements

Management of Agrani Bank Limited is responsible for the preparation of financial statements in
accordance with Bangladesh Financial Reporting Standards and Bangladesh Bank Guidelines and for
such internal control as management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
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.
We further report that:

1. we have obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit and made due verification thereof;
2. in our opinion, proper books of accounts as required by laws were kept by the Bank so far as it
appeared from our examination of those books and proper returns adequate for the purpose of our
audit have been received from the branches not visited by us;
3. the Bank’s balance sheet and profit and loss account dealt with by the report are in agreement with
the books of accounts and returns;
4. the expenditures incurred were for the purpose of the Bank’s operations;
5. the financial statements have been drawn up in conformity with the Bank Companies Act 1991 and in
accordance with the accounting rules and regulations issued by Bangladesh Bank;
6. adequate provisions have been made for advances and other assets which are, in our opinion,
doubtful of recovery;
7. information on adequate capital requirement of the Bank under BASEL-II, as determined at the
year-end, has been stated in item# 4 of the Emphasis of Matters paragraph;
8. the records and statements submitted by the branches have been properly maintained and
consolidated in the financial statements;
9. the information and explanations required by us have been received and found satisfactory;
10. 80% of the risk-weighted assets have been reviewed spending over 16,500 hours; and
11. guidelines of Core Risk Management issued by Bangladesh Bank vide BRPD circular no. 17 dated 7
October 2003 were not fully complied with.

Dated, Dhaka
June 30, 2013

Consolidated Balance Sheet
As at 31 December 2012
Amount in Taka
Particulars Notes 2012 2011
PROPERTY AND ASSETS

Cash: 3(a) 20,738,216,368 18,975,905,725
Cash in Hand (including foreign currencies) 3,690,370,128 3,311,409,222
Balance with Bangladesh Bank and its agent bank
(including foreign currencies) 17,047,846,240 15,664,496,503
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
Money at call and short notice: 5 2,700,000,000 1,000,000,000
Investments: 6(a) 96,590,995,943 88,279,907,526

Government 71,181,746,665 65,770,929,745
Others 25,409,249,278 22,508,977,781
Loans and advances: 7(a) 211,089,468,338 193,805,312,887

Loans, Cash Credit & Over Draft etc. 205,436,766,092 186,183,858,330
Bills Discounted and Purchased 5,652,702,246 7,621,454,557
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
LIABILITIES & CAPITAL

Liabilities:
Borrowings from other banks, Financial Institutions and agents 10(a) 10,074,391,269 25,758,153,981
Deposit and other accounts: 11(a) 291,645,453,939 251,702,793,865

Current deposits & other accounts 39,553,683,542 43,208,615,697
Bills payable 4,707,352,470 5,093,320,206
Savings bank deposits 89,255,325,065 85,320,750,025
Fixed deposits 158,129,092,861 118,080,107,936
Other liabilities: 12(a) 70,364,460,535 46,041,465,154
Total liabilities 372,084,305,743 323,502,413,000
Capital/Shareholders' equity:
Paid-up Capital 13.2 9,912,940,400 9,011,764,000
Reserve: 11,737,282,081 11,737,967,141

Statutory Reserve 14(a) 4,145,527,226 4,139,818,028
General Reserve 15(a) 59,731,264 59,731,264
Asset Revaluation Reserve 16(a) 7,532,023,591 7,538,417,849
Revaluation & Amortization Reserve 17(a) 117,176,049 269,357,597
Retained surplus 18(a) (14,971,828,955) 4,633,770,065
Foreign Currency Translation Reserve 19 26,354,830 22,855,772
Minority Interest 20 1,832 1,800
Total Shareholders' Equity 6,821,926,237 25,675,716,375
Total Liabilities and Shareholders' Equity 378,906,231,980 349,178,129,376
144
Consolidated Off Balance Sheet Items
Amount in Taka
Contingent Liabilities:
Acceptances and Endorsements 21 112,418,753,282 113,392,815,019
Letters of Guarantee 21.1 5,150,104,323 4,420,450,685

Letters of Credit 72,615,416,695 81,305,092,949
Bills for Collection 21.2 18,535,663,840 17,661,445,903
Other Contingent Liabilities 21.3 3,660,369,424 3,634,365,482
Claims against the Bank not acknowledged as debt 12,457,199,000 6,371,460,000
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 - -
Total Off-Balance Sheet Items 112,418,753,282 113,392,815,019
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

Consolidated Profit and Loss Account
For the year ended 31 December 2012
Amount in Taka
Operating income
Interest and Revenue income 23(a) 23,829,984,929 22,382,485,985
Interest paid on deposits, borrowings etc. 24(a) 19,757,259,418 11,913,809,784
Net interest income 4,072,725,511 10,468,676,201
Investment income 25(a) 8,142,960,408 5,312,508,806
Commission, exchange earnings and brokerage 26(a) 4,150,037,566 4,230,405,553
Other operating income 27(a) 1,050,949,536 1,209,438,182
Total operating income 17,416,673,021 21,221,028,742
Operating expenses
Salary and allowance 28(a) 4,914,689,602 4,482,497,194
Rent, taxes, insurance, electricity etc. 29(a) 508,340,020 411,665,844
Legal expenses 30(a) 20,405,061 14,071,725
Postage, stamp, telecommunication etc. 31(a) 152,837,445 120,322,767
Stationery, printing, advertisement etc. 32(a) 181,526,091 178,053,409
Chief Executive's salary and allowances 33(a) 4,820,000 5,060,000
Directors' fees 34(a) 9,448,973 8,115,655
Auditors' fees 35(a) 3,545,958 2,750,060
Depreciation and repair of bank's assets 36(a) 498,331,907 341,242,967
Other expenses 37(a) 1,024,828,252 870,807,835
Total operating expenses 7,318,773,309 6,434,587,455
Profit/(Loss) before amortization, provision & tax 10,097,899,713 14,786,441,287
Amortization of Valuation Adjustment (D) 9.8 1,329,500,000 1,329,500,000
Profit/(Loss) before provision & tax 8,768,399,713 13,456,941,287
Provision for loans and advances 38(a) 24,962,031,507 5,293,098,945
Other provision 39(a) 2,492,601,234 1,703,082,226
Total provision 27,454,632,741 6,996,181,171
Net profit/(loss) before Tax (18,686,233,028) 6,460,760,116
Provision for Tax
Current Tax 40 1,613,182,818 4,257,981,794
Deferred Tax 41 (1,601,715,185) 595,085,587
11,467,633 4,853,067,381
Net profit/(loss) after Tax (18,697,700,661) 1,607,692,736
Add: Retained surplus 18(a) 4,633,770,065 5,041,597,968
Add: Prior year adjustment for Agrani SME (1,012,729) -
Add: Foreign Currency Translation Gain/(Loss) 19 3,499,058 22,855,772
(14,061,444,267) 6,672,146,475
Appropriation: - -
Statutory Reserve 14(a) 5,709,198 1,468,996,638
Minority Interest 20 32 -
Bonus Share Issue 901,176,400 546,524,000
Foreign Currency Translation Reserve 3,499,058 22,855,772
910,384,688 2,038,376,410
Retained surplus 18(a) (14,971,828,955) 4,633,770,065
Earnings Per Share (EPS) 13.3(a) (188.62) 16.22

Dated, Dhaka
June 30, 2013
146
Consolidated Cash Flow Statement
Amount in Taka
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
B. Cash flows from investing activities

Treasury & Other Bond (HTM) (2,995,214,842) (45,129,351,833)
Debenture 380,000,000 665,000,000
Purchase of securities (3,486,647,028) (5,761,401,694)
Purchase/ sales of properties, plant & equipment (406,082,580) (453,032,867)
Proceeds from sale of properties, plant & equipment 235,482,646 170,219,514
Net cash from investing activities (B) (6,272,461,804) (50,508,566,880)
C. Cash flows from financing activities

Payment of long term borrowings 19,169,424 (17,044,403)
Receipt from other borrowings (14,246,020,496) 20,416,503,668
Receipt from issue of ordinary share (Right Share) 100,000,000 3,242,820,000
Net cash from financing activities (C) (14,126,851,072) 23,642,279,265
Net increase in cash and cash equivalents (A+B+C) 2,708,190,697 4,790,410,997
Effect of exchange rate change on cash and cash equivalent 2,468,565,865 2,491,206,166
Cash and cash equivalents at the beginning of the year 23,743,228,695 16,461,611,532
Cash and cash equivalents at the end of the year 47(a) 28,919,985,257 23,743,228,695
Dated, Dhaka
June 30, 2013

Consolidated Statement of Changes in Equity
148
Consolidated Liquidity Statement
(Asset and Liability Maturity Analysis)
(Amount in Taka)
Particulars Up to 01 month 1 - 3 months 3 - 12 months 1 - 5 years More than 5 years Total
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
Annual Report 2012

149
Dated, Dhaka
June 30, 2013
Balance Sheet
Amount in Taka
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
Balance with Other banks and financial institutions: 04 5,293,695,066 3,612,914,097

In Bangladesh 2,883,930,314 1,883,238,401
Money at call and short notice: 05 2,700,000,000 1,000,000,000
Investments: 06 92,419,805,146 85,331,252,876

Government 71,181,746,665 65,770,929,745
Others 21,238,058,481 19,560,323,131
Loans and advances: 07 212,663,017,332 194,085,656,173

Loans, Cash Credit & Over Draft etc. 207,010,315,086 186,464,201,616
Bills Discounted and Purchased 5,652,702,246 7,621,454,557
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

Liabilities:
Borrowings from other banks, Financial Institutions and agents 10 10,074,391,269 25,758,153,981
Deposit and other accounts: 11 292,429,227,137 252,208,360,096

Current deposits & other accounts 40,337,456,741 43,714,181,929
Bills payable 4,707,352,470 5,093,320,206
Savings bank deposits 89,255,325,065 85,320,750,025
Fixed deposits 158,129,092,861 118,080,107,936
Other liabilities: 12 69,049,324,351 44,911,570,722
Total liabilities 371,552,942,757 322,878,084,799
Capital/Shareholders' equity:
Paid-up Capital 13.2 9,912,940,400 9,011,764,000
Reserve: 11,676,841,619 11,683,235,877

Statutory Reserve 14 4,139,818,028 4,139,818,028
General Reserve 15 5,000,000 5,000,000
Asset Revaluation Reserve 16 7,532,023,591 7,538,417,849
Revaluation & Amortization Reserve 17 117,176,049 269,357,597
Retained surplus 18 (14,543,481,897) 4,978,266,572
Total Shareholders' Equity 7,163,476,171 25,942,624,046
Total Liabilities and Shareholders' Equity 378,716,418,928 348,820,708,845
150
Off Balance Sheet Items
Amount in Taka
Contingent Liabilities:
Acceptances and Endorsements 21 112,418,753,282 113,392,815,019
Letters of Guarantee 21.1 5,150,104,323 4,420,450,685

Bills for Collection 21.2 18,535,663,840 17,661,445,903
Other Contingent Liabilities 21.3 3,660,369,424 3,634,365,482
Claims against the Bank not acknowledged as debt 12,457,199,000 6,371,460,000
Other commitments: - -
Documentary credit and short term trade-related transactions - -
Liability on account of outstanding forward exchange contract - -
Undrawn formal standby facilities, credit lines and other commitments - -
Total Off-Balance Sheet Items 112,418,753,282 113,392,815,019

Dated, Dhaka
June 30, 2013

Profit and Loss Account
Amount in Taka
Operating income
Interest and Revenue income 23 23,894,792,205 22,434,672,794
Interest paid on deposits, borrowings etc. 24 19,912,055,753 11,965,996,593
Net interest income 3,982,736,452 10,468,676,201
Investment income 25 8,044,091,527 5,226,461,795
Commission, exchange earnings and brokerage 26 4,143,403,182 4,223,644,366
Other operating income 27 920,184,829 1,127,879,986
Total operating income 17,090,415,990 21,046,662,348
Operating expenses
Salary and allowance 28 4,840,662,717 4,452,305,976
Rent, taxes, insurance, electricity etc. 29 487,258,632 395,195,073
Legal expenses 30 20,399,171 14,071,725
Postage, stamp, telecommunication etc. 31 150,997,707 118,662,891
Stationery, printing, advertisement etc. 32 178,859,477 176,869,644
Chief Executive's salary and allowances 33 4,700,000 4,700,000
Directors' fees 34 3,473,000 4,395,300
Auditors' fees 35 3,237,344 2,530,000
Depreciation and repair of bank's assets 36 492,570,760 337,417,130
Other expenses 37 840,880,564 797,914,767
Total operating expenses 7,023,039,372 6,304,062,506
Profit/(Loss) before amortization, provision & tax 10,067,376,618 14,742,599,842
Amortization of Valuation Adjustment (D) 9.8 1,329,500,000 1,329,500,000
Profit/(Loss) before provision & tax 8,737,876,618 13,413,099,842
Provision for loans and advances 38 24,888,021,560 4,365,034,426
Other provision 39 2,492,601,234 1,703,082,226
Total provision 27,380,622,794 6,068,116,652
Net profit/(loss) before Tax (18,642,746,176) 7,344,983,190
Provision for Tax
Current Tax 12.4 1,580,000,000 4,250,000,000
Deferred Tax 9.6 (1,602,174,107) 595,085,587
(22,174,107) 4,845,085,587
Net profit/(loss) after Tax (18,620,572,069) 2,499,897,603
Add: Retained surplus 18 4,978,266,572 4,493,889,607
(13,642,305,497) 6,993,787,210
Appropriation:
Statutory Reserve 14 - 1,468,996,638
Bonus Share Issue 901,176,400 546,524,000
901,176,400 2,015,520,638
Retained surplus 18 (14,543,481,897) 4,978,266,572
Earnings Per Share (EPS) 13.3 (187.84) 25.22

Dated, Dhaka
June 30, 2013
152
Cash Flow Statement
Amount in Taka
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
B. Cash flows from investing activities

Treasury & Other Bond (HTM) (2,995,214,842) (45,129,351,833)
Debenture 380,000,000 665,000,000
Purchase of securities (2,157,735,350) (4,990,444,260)
Purchase/ sales of properties, plant & equipment (389,560,125) (448,431,730)
Proceeds from sale of properties, plant & equipment 235,482,646 170,219,514
Net cash from investing activities (B) (4,927,027,671) (49,733,008,309)

Payment of long term borrowings (1,932,318) (10,777,648)
Receipt from other borrowings (15,681,830,394) 19,552,115,573
Receipt from issue of ordinary share (Right Share) - 3,000,000,000
Net cash from financing activities (C) (15,683,762,712) 22,541,337,925
Net increase in cash and cash equivalents (A+B+C) 2,738,349,546 5,063,002,563
Effect of exchange rate change on cash and cash equivalent 2,397,812,286 2,455,329,338
Cash and cash equivalents at the beginning of the year 23,554,350,854 16,036,018,953
Cash and cash equivalents at the end of the year 47 28,690,512,686 23,554,350,854
Dated, Dhaka
June 30, 2013

154
Statement of Changes in Equity
(Amount in Taka)
Paid up Revaluation & Statutory General Asset Retained
Particulars Amortization Revoulation Total
Capital Reserve Reserve Reserve Reserve Surplus
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
Dated, Dhaka
June 30, 2013
Liquidity Statement
(Asset and Liability Maturity Analysis)
As at 31 December 2012 (Amount in Taka)
Particulars Up to 01 month 1 - 3 months 3 - 12 months 1 - 5 years More than 5 years Total
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
Annual Report 2012

155
Dated, Dhaka
June 30, 2013
Notes to the Financial Statements
As at and for the year ended December 31, 2012
1. BACKGROUND INFORMATION
1.1 Establishment and status of the Bank

Agrani Bank Limited (the Bank) has been incorporated as a Public Limited Company on May 17,
2007 Vide Certificate of Incorporation No. C-66888(4380)/07, The Bank has taken over the
business of Agrani Bank (emerged as a Nationalized Commercial Bank in 1972, pursuant to
Bangladesh Bank (Nationalization) Order No. 1972 (P.O. # 26 of 1972)) on a going concern basis
through a Vendor Agreement signed between the Ministry of Finance of the People's Republic of
Bangladesh on behalf of Agrani Bank and the Board of Directors on behalf of Agrani Bank Limited
on November 15, 2007 with a retrospective effect from July 01, 2007. The Bank's current
shareholdings comprise Government of the People's Republic of Bangladesh and 12 (Twelve)
other shareholders nominated by the Government. The Bank has 889 branches and 05 (five)
windows are working under Islamic Banking Unit complying with the rules of Islamic Sharjah.
1.1.1 Nature of business

The Bank through its Branches and non-banking subsidiaries provides a diverse range of
financial services and products in Bangladesh and in certain international markets.
1.1.2 Islamic Banking Unit

The Bank obtained the Islamic Banking Unit permission vide letter no. BRPD(P-3)745(3)/2009-
2567 dated July 22, 2009. The Bank commenced operation of its 05 (Five) Islamic windows at
February 28, 2010. 05 (Five) Islamic Banking Windows are located at Motijheel, Gulshan,
Agrabad, Laldighipar and Maizdee Court. The Islamic Banking Windows are governed under the
rules and guidelines of Bangladesh Bank. The principal activities of the windows are to provide
all kinds of Islamic Commercial Banking services to its customers.
1.2 The Bank has 4 (Four) Subsidiaries, details of which are given at note no. 1.2.1-1.2.4.
1.2.1 Agrani Exchange House Private Limited, Singapore

Agrani Exchange House Private Limited is a limited liability company incorporated and domiciled
in the Republic of Singapore with the Registration No. 200200048D 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.
1.2.2 Agrani Remittance House SDN. BHD., Malaysia

The company is a private limited liability Company, incorporated and domiciled in Malaysia with
the Registration No. 706823-M whose registered office is located at Suite 13.01, 13th Floor,
Tower Block Plaza Pekeliling, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia. 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 activity of the company during the
financial year is that of providing remittance services to legal Bangladeshi expatriates working in
Malaysia.
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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.
1.2.4 Agrani SME Financing Company Limited

The Company has been incorporated as a public limited Company on 27 October, 2010 vide
certificate of incorporation No. C- 87827/10. The company has taken over the ongoing work of
Small Enterprise Development Project (A Norway and Agrani bank funded Project of Ministry of
Finance, Bangladesh) on a going concern basis through a Vendor's Agreement signed between
the Ministry of Finance of the People's Republic of Bangladesh, the Board of Directors on behalf
of the Agrani Bank Limited and the Board of Directors on behalf of the Agrani SME Financing
Company Limited on 27 December, 2011. The principal activities of the company are providing
support to Small and Medium Enterprises all over the country through training program on limited
basis and providing loan to the customers.
2. Basis of preparation and significant accounting policies
2.1 Basis of preparation

The consolidated financial statements of the Group and the financial statements of the Bank as
at and for the year ended 31 December 2012 have been prepared under the historical cost
convention and in accordance with Bangladesh Financial Reporting Standards (BFRSs), the
'First Schedule' (section no. 38) of the Bank Companies Act 1991, as amended by the BRPD
Circular no. 14 dated 25 June 2003, other Bangladesh Bank Circulars, the Companies Act 1994,
the Securities and Exchange Rules 1987 and other laws and rules applicable in Bangladesh. In
case the requirement of provisions and circulars issued by Bangladesh Bank differ with those of
other regulatory authorities and accounting standards, the provisions and circulars issued by
Bangladesh Bank shall prevail.
In addition to foregoing directives and standards, the operations of Islamic Banking Windows are
accounted for in accordance with Financial Accounting Standards issued by the Accounting and
Auditing Organization for Islamic Financial Institutions, Bahrain, and Bangladesh Bank circular
no-15, dated November 09, 2009. A separate balance sheet, off balance sheet and profit and loss
account are attached.
2.2 Basis for Measurement

The financial statements of the Bank have been prepared on the historical cost basis except for
the following material items:
a) Government Treasury Bills and Bonds designated as 'Held for Trading (HFT)' at present
value using marking to market concept with gain crediting to revaluation reserve.
b) Government Treasury Bills and Bonds designated as 'Held to Maturity (HTM)' at present
value using amortization concept.
2.3 Basis for Consolidation
The group consolidated the financial statements this year for the first time. The financial
statements of 2011 also consolidated accordingly. The consolidated financial statements include
the financial statements of Agrani Bank Limited and its four subsidiaries named Agrani Equity and
Investment Limited and Agrani SME Financing Company Limited, Agrani Exchange House
Private Limited, Singapore and Agrani Remittance House, BHD, Malaysia made up to the end of

the financial year. The Consolidated financial statements have been prepared in accordance with
Bangladesh Accounting Standards BAS-27 'Consolidated and Separate Financial Statements'.
These Consolidated financial statements are prepared to a common financial year ended 31
December 2012.
2.3.1 Subsidiaries
Subsidiaries are entities controlled by the group. The financial statements of subsidiaries are
included in the Consolidated Financial Statements from the date that control commences until the
date the control ceases.
2.3.2 Transactions eliminated on consolidation
Intra-group balances and transactions and any unrealized income and expenses arising from
intra-group transactions are eliminated in preparing the Consolidated Financial Statements.
Unrealized gains arising from transactions with equity accounted investees are eliminated
against the investment to the extent of the group's interest in the investee. Unrealized losses are
eliminated in the same way as unrealized gains, but only to the extent there is no evidence of
impairment.
2.4 Use of estimates and judgments
The preparation of consolidated financial statements and financial statements of the Bank
required management to make judgments, estimates and assumptions that affected the
application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions have been reviewed considering business realities.
Revisions of accounting estimates have been recognized in the period in which the estimates
have been revised and in the future periods affected, if applicable.
The preparation of financial statements in conformity with adopted BFRS requires the use of
certain critical accounting estimates. It also requires management to exercise its judgment in the
process of applying the Group’s accounting policies. The accounting policies set out below have
been applied consistently across the Group and to all periods presented in these financial
statements.
2.5 Materiality, aggregation and offsetting
The Bank aggregates each material class of similar items and separately which are dissimilar in
nature or function unless those are immaterial. The Bank did not offset assets and liabilities or
income and expense, unless required or permitted by BAS/ BFRS.
2.6 Foreign currency transactions
2.6.1 Functional and presentational currency
Financial statements of the Bank have been presented in Taka, which is the Bank’s functional and
presentational currency.
2.6.2 Foreign currency translation
Foreign currency transactions have been converted into equivalent Taka currency at the ruling
exchange rates on the respective date of such transactions as per BAS 21 “The Effects of
Changes in Foreign Exchange Rates”. Foreign Currency conversion rates are as follows:
Currency 2012 2011

SGD 65.3171 63.1997
RM 26.2473 25.6400
Here, SGD and RM indicate Singaporean Dollar and Malaysian Ringgit respectively.
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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
2.11 Cash and cash equivalents

Cash and cash equivalents include notes and coins on hand, unrestricted balances held with
Bangladesh Bank and highly liquid financial assets which are subject to insignificant risk of
changes in their fair value, and are used by the Bank management for its short-term
commitments.

2.12 Investments
All investments (other than government treasury securities and bonds) are initially recognised at cost,
including acquisition charges associated with the investment. Premiums are amortised and discount
accredited, using the effective or historical yield method. Accounting treatment of government
treasury securities and bonds (categorised as HFT or/and HTM) is made following Bangladesh Bank
DOS circular letter no. 5, dated 26 May 2008 and as amended on 28 January 2009.
2.12.1 Held to Maturity (HTM)
Investments (financial instruments) which have fixed or determinable maturity date and the bank
has no intention to sell before their maturity date irrespective of changes in market prices or the
bank’s financial position or performance are grouped as held to maturity. Government Treasury
Bills, Government Treasury Bonds and other securities approved for statutory liquidity reserves
have been classified as held to maturity financial asset. These financial assets have been
presented at market value as determined on the basis as mentioned in note 2.12.3. As on
December 31, 2012 financial assets under this head have been valued at Tk. 53,501 million as
against its cost of Tk. 53,344 million.
2.12.2 Held for Trading (HFT)
Investment (financial instruments) are grouped as held for trading if they have been originated,
acquired or incurred principally for the purpose of selling or repurchasing them in the next term.
Treasury bond and quoted shares have been grouped as held for trading instruments.
Instruments under this head have been valued at market price except quoted shares.
Government Treasury Bills, Bonds have been valued using marking to market concept on the
basis as mentioned in note 2.12.3. Gain/(Loss) on revaluation of held for trading instrument is
recognized in the profit and loss account. Quoted shares have been presented at cost instead of
market price as described in note 2.12.5. However total market prices of held for trading
instruments except for quoted share is Tk. 19,090 million as against cost of Tk. 19,073 million as
on 31 December 2012.
2.12.3 Revaluation
As per the DOS (BB) Circular letter no. 05, dated 26 May 2008 & subsequent amendment circular
no. 05, dated 28 January 2009, HFT (Held for Trading) securities are revalued on weekly basis
and HTM (Held to Maturity) securities are amortized on yearly basis. The HTM securities are also
revalued if they are reclassified to HFT category with the Board’s approval. Any gain or loss on
revaluation of HTM securities is recognized in the statement of changes in equity. Gain/(Loss) on
revaluation of HFT securities is recognized in the profit and loss account on weekly basis and
gain on revaluation is transferred to statement of changes in equity on monthly basis.
2.12.4 Available for sale
Investments (financial instruments) in shares that have a quoted price but are not held for trading
and investments in shares that are not quoted in an active market and are not held for trading are
grouped as Available for sale. Financial instruments grouped under this head are presented in
note 48. All shares quoted and unquoted have been presented in financial statements at cost
instead of market price as described in note 2.13.5.
2.12.5 Quoted and unquoted shares

Investments in equity instruments/shares that are not quoted in active market are not measured
at fair value due to absence of information required to measure in fair value reliably; so these are
presented at cost. The equity instruments that are quoted in active market are also not presented
at fair value. Abnormal ups and downs have been going on in the market of quoted shares and if
the shares are measured at fair value the results of financial performance will be seriously
misleading for the objective of financial statements. Considering the circumstances, the principle
of presenting the quoted shares in market value has been departed and that departure is replied
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.
2.13.3 Provision for loans and advances

Provision for loans and advances has been made on the basis of instructions contained in
Bangladesh Bank BRPD Circular no.14 dated September 23, 2012 in relation with BCD Circular
no.34 dated November 19, 1989, BCD Circular no. 20 dated December 27, 1994, BCD Circular
no. 12 dated September 4, 1995, BRPD Circular no. 16 dated December 6, 1998, BRPD Circular
no. 9 dated May 14, 2001, BRPD Circular no. 09 dated August 20, 2005 and BRPD Circular no.
17 dated December 06, 2005.
2.13.4 Interest and discount income

Interest on loans and advances, investment income and discount income are stated at gross
amount as per requirement of BRPD Circular no 14 dated June 25, 2003.

2.13.5 Written off loans and advances
Loans and advances with no realistic prospect of recovery have been written off against which full
provisions were made earlier and legal cases initiated but pending, except the state owned
enterprises for which no legal actions have been taken. Detailed memorandum records for all
such written off accounts are maintained without reducing the Bank’s claim.
2.14 Fixed assets and depreciation

a) Fixed assets are stated at cost of acquisition/valuation less accumulated depreciation.
b) Depreciation is charged on straight-line method on all fixed assets at the following rates per
annum:
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
Year % of basic pay

1986 to 1994 10%
1995 to 1999 18%
2000 to 2003 25%
2004 to 2005 30%
2006 35% (Actuarial valuation has been performed and necessary
provision are being maintained in the accounts as per valuation)
2007 to 2012 30% (Necessary provisions are being maintained in the
accounts)

This has been named as Superannuation Fund (SAF) created for paying pension to retiring
employees. The fund is shown under other liabilities head.
iii) General provident fund (GPF)
Employees opted for pensions are also contributing 10%-30% of basic salary as per their
desire to GPF. The Bank does not contribute any amount to the GPF against these
employees. The Fund is shown under Sundry Deposit.
2.22 Death relief grant scheme
The Bank operates a Death Relief Grant Scheme since January 01, 1989, which replaced the
group insurance scheme. The scheme is applicable to all employees of the Bank and payments
out of this fund are made to the successors of the employees on their death while in Bank's
service and quantum of payment is determined as per scale and grade of such employees.
2.23 Taxation
The Bank recognizes the current and deferred tax in the financial statements using the provisions
of the prevailing tax laws applicable in Bangladesh and as per BAS-12 (Income Taxes). Current
and deferred taxes are charged or credited to equity if the tax relates to items that are charged or
credited directly to equity. Status of current and deferred tax is as under:
i) Past tax liability: Income Tax assessment has been finalized up to 2004 except 2002 and
appeal pending for the year 2002, 2005, 2006 and 2007. The return has been submitted
for the year 2008, 2009, 2010 and 2011. The submission of tax return for the year 2012 is
in process.
ii) Current tax: Tk.1,613 million ( solo Tk.1580 million) has been made for provision for the
year 2012 as against Tk.4,258 million (Solo Tk.4,250) in the year 2011. Details of Tax
assessment are shown annexure-F. While calculating provision for tax, ‘Amortization of
Valuation Adjustment’ amounting to Tk.1329.50 million has been considered as
admissible expense.
iii) Deferred tax: Deferred tax has been calculated as per Bangladesh Accounting
Standard-12 Income Taxes. Calculation shows deferred tax assets of Tk. 4,398 million
(Note - 9.6), which has been accounted for accordingly as against previous year’s figure
of Tk. 2,796 million. Difference amount of Tk. 1,602 million has been credited to the Profit
& Loss Account.
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
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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.
a) Geographical location wise segments report

Figure in million (Tk.)
For the year ended December 31, 2012

Branches of the banking entity and operations in line with geographical segments
Particulars
Dhaka Chittagong Khulna Rangpur Rajshahi Sylhet Barisal Faridpur Mymensing Comilla Out side Total
Bangladesh
Number of Branches 150 77 129 64 136 58 52 36 83 104 - 889

Interest income 14,804 3,506 1,231 767 856 356 413 521 661 716 - 23,830
Interest on Branch A/C ( Net) (3,640) (1,008) 617 65 518 905 84 235 733 1,491 - -
Interest paid on deposits etc. (14,524) (2,339) (720) (362) (268) (196) (179) (318) (389) (463) - (19,757)
Net interest income 280 1,167 511 405 588 160 234 203 272 253 - 4,073
Investment income 8,143 - - - - - - - - - - 8,143
Commission, and others 3,494 210 66 62 80 14 50 21 53 100 - 4,150
Other operating income 395 92 93 55 8 36 57 46 80 94 97 1,051
Total operating income 12,312 1,468 670 521 676 210 340 270 406 447 97 17,417
Allocated expenses (4,852) (542) (298) (352) (437) (71) (110) (87) (231) (255) 84 (7,319)
Operating profit (loss) 7,461 926 372 169 240 139 230 183 174 192 13 10,098
Operating profit (loss) as % 73.88% 9.17% 3.69% 1.67% 2.37% 1.38% 2.28% 1.81% 1.73% 1.90% 0.12% 100.00%
b) Segment report by nature of operation

Figure in million (Tk.)

Nature of operation
Consolidated Solo
Amount In % Amount In %
Operating profit from banking operation 1,995 19% 2,023 20%
Operating profit from investment operation 8,143 81% 8,044 80%
Total operating profit 10,098 100% 10,067 100%
2.29 Risk management

The risks of Agrani Bank Limited have been defined as the possibility of losses, financial or
otherwise. The Risk Management of the Bank covers 6 (six) Core Risk Areas of banking i.e.
Credit Risk Management, Foreign Exchange Risk Management, Asset Liability Management,
Prevention of Money Laundering, establishment of Internal Control & Compliance and
Information & Communication Technology (ICT) risk. The prime objective of the risk management
is that the Bank takes well calculative business risks while safeguarding the Bank's capital, its
financial resources and profitability from various risks. In this context, the Bank has implemented
various steps as per the guidelines of Bangladesh Bank.

2.29.1 Credit Risk Management
Credit Risk is one of the prime risks of the Bank. It indicates the potential loss arising from
contractual failure of the borrower with the Bank. The failure may be resulted from unwillingness
of the borrower to repay or due to decline of the financial conditions. Therefore, Bank's Credit
Risk Management activities have been designed to address all these issues.
On the basis of Bangladesh Bank's Credit Risk Management (CRM) policies, Agrani Bank
Limited has formulated a Manual of Credit Risk Management Policies which has been approved
by Bank's Board of Directors, already in force. These help to bring the credit operation of the
Bank to the level of international standard.
The organizational structure of Bank's Head Office has been designed in line with CRM
guidelines. The duties of the officers/executives, working in credit areas, have been segregated
for smooth functioning. Credit approval, administration, monitoring and recovery function have
been segregated and functioning accordingly. Credit Risk Management activities ensure
maintaining asset quality, assessing risks in lending to particular customer, sanctioning credit,
formulating policy/strategy for lending operation, etc.
A thorough due diligence is done before sanction of any credit facility as per Credit Risk
Management Policy. The risk assessment includes borrower risk analysis, financial analysis,
industry analysis, historical performance of the customer, security against credit facility, etc. The
assessment process is initiated at Branch/Credit Division which is placed before the Credit
Committee (CRE-COM)/Board for approval/decline.
In determining single borrower/large loan limit, the instructions of Bangladesh Bank are strictly
followed. Internal Audit is conducted at periodical interval to ensure compliance of the policies of
the Bank and Regulatory bodies.
2.29.2 Foreign Exchange Risk Management

The risk of foreign exchange transactions has been streamlined to earn a potential gain through
the Treasury Department. i.e. Fund Management Division which is run by a group of structured
manpower. Although the global economic scenario was very much alarming because of the crisis
in all economic phenomena, still the Bank has faced it prudently leading to higher profit compared
with the previous record of the Bank. It has become possible by Treasury Department through
optimum use of open position limit fixed by Bangladesh Bank with a view to generating maximum
revenue.
There is an active participation in inter-bank foreign exchange market. The foreign exchange risk
of the Bank is minimal as majority of the transactions are carried out on behalf of the customer’s
requirement for various trade finance and remittance activities. The Bank did not conduct any
speculative deal in foreign currency for the year. To minimize any potential loss arising from
currency fluctuation, the Bank does conduct cross currency activities to consolidate its currency
position into a single foreign currency by converting its inflow of various currencies due to
customer’s export activities and remittances from abroad.
In compliance with the Bangladesh Bank Guidelines, Agrani Bank Limited has prepared Foreign
Exchange Risk Management Manual covering the Foreign Exchange Risk and Policy related with
Foreign Exchange dealings. As per terms and conditions of the Manual, Treasury Front Office,
Back Office and Mid Office have been established under separate management.
To facilitate the treasury functions, individual limit for the dealers and dealing room limit including
Stop Loss limit, Trigger limit and Counter Party limit have been fixed up and therefore there is no
scope to take any excessive risk by any dealer. To keep the deal very much transparent and to
avoid the future dispute a Voice Recorder has been set-up in the dealing room. The foreign
exchange risk of the Bank is minimal as all the transactions are carried out on behalf of the
customer against L/C commitment and other outward remittances. No dealing on Bank's account
was conducted during the year.
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.
2.29.6 Information and Communication Technology (ICT) Risk

Use of ICT in Agrani Bank Limited is increasing tremendously with the increased use of ICT. It
become necessary to be more careful to address the risk associated to ICT security. Bank has

formulated well defined ICT policy in line with the international best practices and prudential
guidelines of Bangladesh Bank on ICT security. Besides the policy bank also prepared
implementation manual for user at all level in conformity with the ICT policy. An ICT Audit manual
has been prepared and is in use for auditing ICT activities of the bank to assure that the policy
and the procedure are meticulously followed while using ICT by the user at any level.
2.30 Financial guarantees
Financial guarantee contracts are contracts that require the issuer to make specified payments to
reimburse the holder for a loss it incurs because a specified debtor fails to make payments when
due in accordance with the terms of a debt instrument. Such financial guarantees are given to
banks, financial institutions and other parties on behalf of customers to secure loans, overdrafts,
other banking facilities and other various payments. Financial guarantees are recognized in the
financial statements at fair value on the date the guarantee was given as contingent liability.
2.31 Related party transactions
Parties are considered to be related if one party has the ability to directly or indirectly control the
other party or exercise significant influence over the other party in making financial or operational
decisions. During the year the Bank has some transactions with the Government (owner of the
Bank) in respect of banking business like loans and advances, guarantees and commitments as
mentioned below:
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.
1 Government (Note-21.1) Owner 36,737,694 Letter of Guarantee

2 Government (Note-6) Owner 71,181,746,665 Government Securities
3 Government (Note-9) Owner 6,486,620,470 Advance Income Tax
4 Ministry of Food and other Ministry Owner 253,353,000 Loans and Advances
(Note-7.3.b)
5 State Owned Enterprises Enterprises 18,535,483,000 Guarantees for Loans
(Note-7.3.b) Owned by and Advances (Funded
Government and Non-Funded) to
State
6 Government (Note-11.d) Owner 17,928,378,523 Deposit (CD, SB,
FDR, STD and special
purpose deposit).
7 Agrani Exchange House Pvt. Ltd., Subsidiary 6,457,000 Investment in
Singapore Company subsidiary company
8 Agrani Remittance House SDN.BHD, Subsidiary 8,967,168 Investment in
Malaysia Company subsidiary company
9 Agrani Equity & Investment Ltd. Subsidiary 2,000,000,000 Investment in
Company subsidiary company
10 Agrani SME Financing Com. Ltd. Subsidiary 600,000,000 Investment in
Company subsidiary company
168
Annual Report 2012
2.32 Compliance of Bangladesh Accounting Standards (BAS) and Bangladesh

Financial Reporting Standards (BFRS)
Name of Bangladesh Accounting Standards (BAS) BAS No. Status
Presentation of Financial Statements 1 Applied
Inventories 2 N/A
Statement of Cash Flows 7 Applied
Accounting Policies, Changes in Accounting Estimates and Errors 8 Applied
Events after the Reporting Period 10 Applied
Construction Contracts 11 N/A
Income Taxes 12 Applied
Property, Plant and Equipments 16 Applied
Leases 17 N/A
Revenue 18 Applied
Employee Benefits 19 Partly Applied
Accounting for Govt. Grants and Disclosure of Government Assistance 20 N/A
The Effects of Changes in Foreign Exchange Rates 21 Applied
Borrowing Costs 23 Applied
Related Party Disclosures 24 Applied
Accounting & Reporting by Retirement Benefit Plans 26 N/A
Consolidated and Separate Financial Statements 27 Applied
Investments in Associates 28 N/A
Interest in Joint Ventures 31 N/A
Financial Instruments: Presentation 32 Applied
Earnings per share 33 Applied
Interim Financial Reporting 34 N/A
Impairment of Assets 36 Applied
Provisions, Contingent Liabilities and Contingent Assets 37 Applied
Intangible Assets 38 Not Applied
Financial Instruments: Recognition and Measurement 39 Applied
Investment Property 40 Applied
Agriculture 41 N/A
Name of Bangladesh Financial Reporting Standards (BFRS) BFRS No. Status

First-time Adoption of Bangladesh Financial Reporting Standards 1 N/A
Share-Based Payment 2 N/A
Business Combinations 3 N/A
Insurance Contracts 4 N/A
Non-Current Assets Held for Sale and Discontinued Operations 5 N/A
Exploration for and Evaluation of Mineral Resources 6 N/A
Financial Instruments: Disclosures 7 Applied
Operating Segments 8 Partly Applied

2.33 Particulars of Directors and their interest in the Bank (31-12-2012)
Name and address Status Date of original No. of shares

appointment held in the Bank
Dr. Khondoker Bazlul Hoque Chairman 09-09-2009 01
Professor, Department of International Business,
University of Dhaka.
Arastoo Khan Director 24-12-2012 01

Additional Secretary, Finance Division
Ministry of Finance
Government of the People’s Republic of Bangladesh.
A.K. Gulam Kibria, FCA Director 24-09-2009 01

Chartered Accountant, G. Kibria & Co.
24-25 Dilkusha C/A (5th Floor), Dhaka.
Engineer Md. Abdus Sabur Director 09-09-2009 01

Engineer and Industrialist
4 Motijheel C/A (2nd Floor), Dhaka-1000.
Niaz Rahim Director 20-12-2012 01

Rahim Afrooz Group of Company, 1/A Gulshan Avenue
(3rd Floor), Gulshan-1, Dhaka-1212.
Advocate Balaram Podder Director 20-12-2012 01

21/A, Purana Paltan (3rd Floor), Dhaka-1000.
Prof. Dr. Md. Abdur Rouf Sardar Director 20-12-2012 01

Director, Bangladesh Medical College Hospital
House # 33, Road # 14/A, Dhanmondi R/A, Dhaka.
Shameem Ahsan Director 20-12-2012 01

South Breeze Apartments, 8 Gulshan Avenue
Apt.# 53, Gulshan-1, Dhaka-1212
Md. Altaf Hossain Molla Director 20-12-2012 01

Garden Valle, Flat # A-3, 51/1, Circular Road
Hatirpool, Kalabagan, Dhaka-1205
ABM Kamrul Islam Director 20-12-2012 01

Joint Secretary (Rtd.) 16/C, Lake Circus, Kalabagan
Flat # 02, Kalabagan, Dhaka-1205
Hasina Newaas Director 20-12-2012 01

32/A, Mymemsing Lane, Bangla Motor, Dhaka.
Syed Abdul Hamid , PhD Managing 20-04-2010 N/A
Agrani Bank Limited, Head Office, Dhaka. Director & CEO
170
Annual Report 2012
2.34 Name of the Directors and their interest in different entities (31-12-2012)
Name of the Designation Entities where they have interest

& Residence
Directors with ABL
Position with the Entities
Dr. Khondoker Bazlul Hoque Director & Professor Karobi, 15E, 3 & 3A, Diganto
Chairman Department of International Business, Paribagh, Dhaka-1000.
Arastoo Khan Director Additional Secretary, Planning Commission House # 21/B, Aptt. # B-4
Complex, Room No. 6, Block No. 16, Road # 8, Gulshan -1
Sher-E-Banglanagar, Dhaka. Dhaka-1212
A.K. Gulam Kibria, FCA Director Chartered Accountant House # 12, Road # 95
G. Kibria & Co. Aptt. # 4/C, Gulshan-2
24-25 Dilkusha C/A (5th Floor), Dhaka. Dhaka-1212.
Engineer Md. Abdus Sabur Director Engineer and Industrialist 20 Green Corner, Green
4 Motijheel C/A (2nd Floor), Dhaka. Road, Dhaka-1205.
Niaz Rahim Director Rahim Afrooz Group of Company House # NE(G) 7B, Road # 83
1/A, Gulshan Avenue (3rd Floor) Gulshan-2, Dhaka-1212.
Gulshan-1, Dhaka-1212.
Advocate Balaram Podder Director Advocate Dom-Inno (Altura)
21/A, Purana Paltan (3rd Floor) A-7 (5th Floor), 342, Segun
Dhaka-1000. Bagicha, Dhaka-1000.
Prof. Dr. Md. Abdur Rouf Sardar Director Director, House # 23/D, Road # 3
Bangladesh Medical College Hospital Dhanmondi R/A
House # 33, Road # 14/A Dhaka-1209.
Dhanmondi R/A, Dhaka.
Shameem Ahsan Director South Breeze Apartments Prasad Baibav Apartments
8 Gulshan Avenue House # 19, Apt. # F4, Road # 96
Apt. # 53, Gulshan-1, Dhaka-1212 Gulshan-2, Dhaka.
Md. Altaf Hossain Mollah Director Garden Valle, Flat # A-3 Garden Value, Flat # A-3
51/1, Circular Road, Hatirpool 51/1, Circular Road, Hatirpool
Kalabagan, Dhaka-1205 Kalabagan, Dhaka-1205.
ABM Kamarul Islam Director Joint Secretary (Rtd.) 16/C, Lake Circus
16/C, Lake Circus, Kalabagan, Flat # 02 Kalabagan, Flat # 12,
Kalabagan, Dhaka-1205. Dhaka-1205.
Hasina Newaaz Director 32/A, Mymemsing Lane 33, Mymemsing Lane
Bangla Motor, Dhaka. Bangla Motor, Dhaka.

2.35.1 Audit Committee (31-12-2012)
Status with Status Address
Name with the
the Bank Present Residence
Committee
Ranjit Kumar Chakraborty Director Chairman Additional Secretary, 7, Gulfassion
Finance Division, (3rd Floor),
Ministry of Finance, Baily Road,
Govt. of the People’s Dhaka.
Republic of
Bangladesh.
Dr. Khondoker Bazlul Hoque Chairman Member Professor, Karobi, 15E, 3 & 3A,
Department of Diganto, Paribagh,
International Dhaka-1000.
Business, University
of Dhaka
A.K Gulam Kibria, FCA Director Member Chartered House # 12,
Accountant, Road # 95
G.Kibria &Co. 24-25 Aptt. # 4/C,
Dilkusha C/A(5th Gulshan-2,
Floor), Dhaka. Dhaka-1212.
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.
2.35.2 Board Audit Committee

The Board Audit Committee played an important role during 2012 for efficient and safe banking
system. The Committee ensured close co-operation between the management and the ultimate
supervisory authority- the Board of Directors. It also performed a vital role by identifying various
risk factors that arose from the business activities of the Bank; by periodically reviewing the audit
reports for safe, sound and disciplined banking operations. Besides these, the Audit Committee
has directed the concerned to allocate right man for audit, prepare Risk-based audit planning,
reduce the number of objections of the same nature raised by internal audit by making groups
according to the nature of objection, re-define the serious objections and very serious objections
and reconcile all pending entries. On the basis of the policy guidelines of Audit & Inspection of the
bank, 3 Divisions of Head Office, 510 branches, 27 Corporate Branches, 13 AD (Authorized
Dealer) Branches, 15 Zonal Offices, 12 branches (on the basis of issues/inspection), i.e. a total
of 580 branches/divisions were audited against the target of 450 branches under Annual Audit
Plan-2012, indicating an achievement rate of 129% of the target for the year 2012.
2.35.3 Important decisions

Important decisions were taken by the Audit Committee in 14 (Fourteen) meetings held during the
reporting year 2012. In those meetings emphasis were given on the following issues:
1. The Committee analyzed the implementation status of Audit plan 2012. The Committee also
looked into the “Annual Audit Plan-2013” of the Bank and approved the same.
2. The committee finalized the Balance Sheet and Profit and Loss Account of the Bank as on
31-12-2012 for approval of the Board.
3. The Committee recommended inspection of branches by Zonal heads and emphasized cross
examination of every case while making such inspections.
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.
2.35.4 Instruction of Committee

Beyond that, the committee instructed the Bank Management to perform the following activities
regularly:
a) To perform issue based audits;
b) To perform auditing on random basis;
c) To cover auditing of all branches of the bank in every 3 years;
d) To set priority area for auditing;
e) To minimize the audit objections through strengthening the internal control systems;
f) To ensure the appropriate implementation of the audit recommendations;
g) To collect the report of regularization of the irregularities/objections raised by the Audit Team as
soon as possible;
h) To take steps to scrutinize the implementations of the objections on random basis;
i) To place the most irregularities/objections raised by Internal Audit to the Audit Committee in the
form of Executive Summary;
j) To prepare Risk-based audit planning, reduce the number of objections of the same nature raised
by internal audit by making groups according the nature of objection and redefine the serious
objections and very serious objections; and
k) To fix up the criteria for selection of External Auditor.

2.36 Shariah Supervisory Committee (31-12-2012)
Status with Address
Name the
Committee Office Residence
Prof. Moulana Mohammad Salahuddin Chairman Khatib 34/1 (3rd Floor), Zigatola
National Mosque, Baitul Dhanmondi, Dhaka.
Mokarram Dhaka.
Prof. Dr. A.N.M. Raisuddin Member Professor 28/E, Isha Khan Road R/A
Department of Islamic University of Dhaka.
Studies, University of
Dhaka.
Prof. Dr. Muhammad Abdur Rashid Member Professor Building No. 65/G
Department of Islamic Shaheed Giasuddin R/A,
Studies University of University of Dhaka.
Dhaka.
Prof. Dr. K.M. Saiful Islam Khan Member Professor Sergent Jahurul Hoque
Department of Arabic Hall, House Tutors’
University of Dhaka. Quarter, University of
Dhaka.
Prof. Dr. Mohammad Yousuf Member Professor 35/H, North Fullar Road
Department of Persian R/A, University of Dhaka.
Language & Literature,
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. Mukhlesur Rahman Member Central Shariah Board House-09

Islamic Banks of (1st Floor), Road-15,
Bangladesh, Dhaka. Sector-12, Uttara, 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.
3.3.1 Cash Reserve Requirement (CRR)

Minimum Reserve Required @ 5.5% of Total Demand and Time Liabilities 14,827,595,390 12,040,089,740
Required Reserve @ 6% of Average Demand and Time Liabilities 16,175,558,610 13,134,643,350
Actual Reserve held with Bangladesh Bank 16,113,545,000 14,590,974,000
Surplus/ (Deficit) (62,013,610) 1,456,330,650
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.
3.3.2 Cash Reserve Requirement (bi-weekly average)

Required Reserve @ 6% of Average Demand and Time Liabilities 16,175,558,610 13,134,643,350
Actual Reserve held with BB (on average for last bi-weekly of December) 16,282,838,650 11,894,682,000
Surplus/(Deficit) 107,280,040 (1,239,961,350)
3.3.3 Statutory Liquidity Ratio (SLR)

Required Reserve @19% of Total Demand and Time Liabilities 51,222,602,270 41,593,037,280
Actual Reserve held 79,729,428,020 66,884,750,430
Surplus/(Deficit) 28,506,825,750 25,291,713,150
3(a) Consolidated Cash

(i) Cash in Hand:
Agrani Bank Limited 3,635,176,780 3,263,678,354
Agrani Equity & Investment Limited - -
Agrani SME Financing Limited 28,618 64,590
Agrani Exchange House Pvt. Limited Singapore 55,105,490 47,666,099
Agrani Remittance House SDN. BHD. Malaysia 59,240 179
3,690,370,128 3,311,409,222
(ii) Balance with Bangladesh Bank and its agent bank:
Agrani Equity & Investment Limited -
Agrani SME Financing Limited - -
Agrani Exchange House Pvt. Limited, Singapore - -
Agrani Remittance House SDN. BHD. Malaysia - -
17,047,846,240 15,664,496,503
20,738,216,368 18,975,905,725

31-12-2012 31-12-2011
Taka Taka
4 Balance with Other Banks & Financial Institutions
In Bangladesh (Note - 4.1) 2,883,930,314 1,883,238,401
Foreign currencies (Outside Bangladesh) 2,409,764,752 1,729,675,696
5,293,695,066 3,612,914,097
4.1 In Bangladesh: Local Currency
Bank
Al-Arafah Islami Bank Limited 309,683,313 593,830
First Security Islami Bank Limited 494 98,994
Shahjalal Islami Bank Limited 151,925,000 -
Bangladesh Commerce Bank Limited 120,000,000 100,000,000
Bank Asia Limited - 500,000
AB Bank Limited 500,000 -
ICB Islamic Bank Limited 81,821,507 82,045,577
Mercantile Bank Limited - 20,000,000
663,930,314 203,238,401
Other Financial Institutions
Bangladesh Industrial Finance Company Limited 80,000,000 80,000,000
Fidelity Asset & Security Limited 20,000,000 100,000,000
First Lease Int. Limited 200,000,000 20,000,000
GSP Finance Company Bangladesh Limited 20,000,000 50,000,000
International Leasing and Financing Service Ltd. 250,000,000 150,000,000
Lanka Bangla Limited 250,000,000 250,000,000
Peoples Leasing, Finance & Investment Limited 700,000,000 430,000,000
Premier Leasing & Finance Ltd. 250,000,000 250,000,000
Prime Finance and Investment Limited - 100,000,000
Reliance Finance Limited 400,000,000 200,000,000
Uttara Finance & Investment Limited 50,000,000 50,000,000
2,220,000,000 1,680,000,000
2,883,930,314 1,883,238,401
4.2 Balance with Other Banks and Financial Institutions (Account wise):
Current & Other Accounts 2,409,764,752 1,729,675,696

Fixed Deposit Receipts (FDR) 2,883,930,314 1,883,238,401
5,293,695,066 3,612,914,097
4.3 Maturity grouping of balances:
On demand - -
Less than three months 3,462,457,021 2,014,292,713
More than three months but less than one year 1,800,000,000 1,500,000,000
More than one year but less than five years 31,238,045 98,621,383
More than five years - -
5,293,695,066 3,612,914,096
4(a) Consolidated balance with other banks and financial institutions
(i) In Bangladesh
Agrani Equity & Investment Limited 9,758,374 1,344,916
Agrani SME Financing Limited 775,781,991 507,038,039
Agrani Exchange House Pvt. Limited Singapore - -
3,669,470,679 2,391,621,356
Less: Balance with Agrani Bank Ltd. 785,540,365 508,382,955
2,883,930,314 1,883,238,401
(ii) Outside Bangladesh
Agrani Remittance House SDN. BHD. Malaysia 125,454,167 80,915,763
2,584,043,974 1,870,822,669
5,467,974,288 3,754,061,070
5 Money at call and short notice
Commercial Banks (Note - 5.1) 2,700,000,000 1,000,000,000
2,700,000,000 1,000,000,000
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.

31-12-2012 31-12-2011
Taka Taka
iii) The investment in shares includes 1,98,75,981 shares of GMG Airlines Limited purchased at a consideration of Tk. 33.71 per
share from Crescent Ltd., Pharmatec Chemical Ltd., Beximco Holdings Ltd., and Apollo Trading Ltd., shareholders of GMG Airlines
Limited under sell and buy back agreement signed among Agrani Bank Limited, Crescent Ltd., Pharmatec Chemical Ltd., Apollo
Trading Ltd and Beximco Holdings Limited on February 02, 2011 for the period of one year commencing from February 02, 2011.
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 February 02, 2011 at 20% annual markup on such purchase price. Beximco Holding Limited has also given
corporate guarantee for payment of the guaranteed liabilities on February 02, 2011. The buy back period of the agreement has been
extended upto 31st July 2012 by a new supplementary agreement. The GMG Airlines Limited shares have been transferred in the
name of the Bank. GMG has suspended its all flight operation with effect from 30 March 2012.
All the agreements and the amendment agreements under note 6.4 above have expired and consequently the exercise periods of
the guarantees to buy back the above shares have also expired. Renewal of investment is under process and at that time lien and
other formalities to be completed.The market value of above shares as on 31 December 2012 was Tk.1,631,063,795 resulting in
a decrease of Tk.1,368,936,205 from the acquisition cost of investment. A provision of Tk.1,250,000,000 has been made for such
decrease and included in “Other Provision”.
6(a) Consolidated investments

(i) Government Securities
71,181,746,665 65,770,929,745
(ii) Others
Agrani Equity & Investment Limited 4,171,190,797 2,948,654,650
25,409,249,278 22,508,977,781
Total Investments (i+ii) 96,590,995,943 88,279,907,526
7 Loans and Advances
7.1 In Bangladesh and Outside Bangladesh
In Bangladesh:
a) Loans
Rural Credits 8,646,373,980 7,279,070,047
Weavers Credits 10,857,830 11,705,103
Industrial Credits 51,720,700,469 42,440,027,354
Jute Advances 6,302,669,767 5,700,447,208
Leather Sector Advances 3,641,043,624 3,711,896,470
Staff Loans 15,691,648,617 14,904,011,889
Loan (Others) 50,560,666,148 41,156,331,689
Small and Micro Credits 1,867,168,181 2,474,310,291
138,441,128,616 117,677,800,051
b) Cash credits
Cash Credits 45,057,291,363 40,378,911,919
Packing Credits 946,045,376 721,595,442
Loan Against Imported Merchandise (LIM) 606,009,527 686,267,632
Payment Against Documents (PAD) 8,282,378,731 14,682,394,327
54,891,724,997 56,469,169,320
c) Overdrafts 13,671,977,217 12,311,747,989
Total (a+b+c) 207,004,830,830 186,458,717,360
Outside Bangladesh: 5,484,256 5,484,256
Total Loans, Cash Credit & Over Draft etc. 207,010,315,086 186,464,201,616
Bills Purchased & Discounted (Note - 7.8)
Inland Bills Purchased (In Bangladesh) 1,151,028,633 1,970,180,592
Foreign Bills Purchased (Outside Bangladesh) 4,501,673,613 5,651,273,965
5,652,702,246 7,621,454,557
Total Loans & Advances 212,663,017,332 194,085,656,173
7.2 Maturity grouping of loans and advances:
Repayable on Demand 20,876,734,366 21,341,065,620
Not more than 3 months 8,282,378,731 14,682,394,327
More than 3 months but not more than 1 year 46,924,459,544 42,853,222,210
More than 1 year but not more than 5 years 82,772,709,376 93,715,005,315
More than 5 years 53,806,735,315 21,493,968,701
212,663,017,332 194,085,656,173
178
31-12-2012 31-12-2011
Taka Taka
7.3.a Disclosure for significant concentration
Advances to allied concerns of Directors - -

Advances to Managing Director - -
Advances to Other Executives 13,382,164,995 11,294,792,606
Advances to Customers’ Group 147,560,151,868 140,350,836,213
Industrial Credits 51,720,700,469 42,440,027,354
212,663,017,332 194,085,656,173
7.3.b Disclosure for sector-wise loans and advances
Government sector 253,353,000 231,222,000
Other public sector 18,535,483,000 16,916,300,000
Private sector 193,874,181,332 176,938,134,173
212,663,017,332 194,085,656,173
7.3.c Detail of information on advances more than 10% of the Bank’s Paid-up capital
Number of the clients 14 15

Amount of outstanding advances (funded) 33,097,400,000 34,957,700,000
Amount of recovery 2,131,800,000 3,338,400,000
Detail information as at December 31, 2012 given in the enclosed Annexure- A
7.4 Geographical Location - wise Loans and Advances:
A. Urban:
Dhaka Region 121,422,753,266 112,803,298,490
Chittagong Region 35,898,010,296 28,947,738,289
Khulna Region 7,149,236,905 8,758,892,083
Rajshahi Region 6,791,435,817 6,676,344,973
Barisal Region 4,727,205,780 2,384,482,908
Sylhet Region 1,648,671,403 2,253,822,133
Rangpur 4,516,280,126 3,990,614,615
Mymensing Region 3,773,946,647 4,002,116,853
Comilla Region 4,286,059,046 3,857,598,810
Faridpur Region 3,353,662,408 3,198,376,880
Sub Total 193,567,261,694 176,873,286,034
B. Rural:
Dhaka Region 2,478,015,373 2,008,178,129
Chittagong Region 362,606,165 345,058,747
Khulna Region 2,135,486,348 2,607,462,577
Rajshahi Region 2,773,966,742 2,750,811,288
Barisal Region 3,566,137,693 1,793,218,989
Sylhet Region 549,557,134 734,496,493
Rangpur 2,431,843,145 2,169,564,845
Comilla Region 1,836,882,448 1,684,145,565
Faridpur Region 838,415,602 821,532,535
Sub Total 19,095,755,638 17,212,370,139
Total (A + B) 212,663,017,332 194,085,656,173
7.5 Sector-wise Loans and Advances:
Agriculture and Fishery 8,646,373,980 7,279,070,047
Jute & Jute Goods 6,302,669,767 7,982,984,741
Transport Storage & Communication 1,500,300,000 1,744,397,381
Ship Breakings 2,197,100,000 2,201,420,446
Textile & Readymade Garments 26,754,200,000 31,785,256,314
Food & Allied Industry 8,632,700,000 9,851,625,898
Construction & Engineering 1,850,456,000 4,254,667,913
Pharmaceuticals and Chemicals 2,980,674,000 3,785,490,360
Leather Sector 3,641,043,624 3,711,896,469
Power Sector 11,804,200,000 7,466,974,000
Professional and Services 1,822,688,504 1,402,068,080
Housing Service 5,721,242,396 4,498,347,825
Wholesale/Retail Trading 21,527,800,000 22,547,741,152
Personal (staff and other personal loan) 15,691,648,617 14,904,011,889
Others 93,589,920,444 70,669,703,658
212,663,017,332 194,085,656,173

31-12-2012 31-12-2011
Taka Taka
7.6 Loans & Advances are Classified as per Bangladesh Bank Circular:
Standard:
Unclassified (including staff loan) 150,512,979,375 162,911,135,940
Special Mention Account 8,348,786,898 9,686,035,788
158,861,766,273 172,597,171,728
Classified:
Sub-Standard 7,119,465,383 2,095,639,371
Doubtful 9,188,246,760 2,380,248,653
Bad & Loss 37,493,538,916 17,012,596,421
53,801,251,059 21,488,484,445
212,663,017,332 194,085,656,173
7.7 Particulars of Loans and Advances:
Loans considered good in respect of which of the banking company is fully secured 181,283,721,412 165,447,525,694
Loans considered good against which the banking company holds no 16,591,494,227 15,142,129,950
security other than the debtor’s personal guarantee
Loans considered good secured by the personal undertakings of one or 14,787,801,693 13,496,000,529
more parties in addition to the personal guarantee of the debtors
Loans adversely classified; for which no provision is created - -
212,663,017,332 194,085,656,173
Loans due by directors or officers of the banking company or any of them
either separately or jointly with any other persons 13,382,164,995 11,294,792,606
Loans due from companies or firms in which the directors of the banking - -
company have interests as directors, partners or managing agents or in
case of private companies as members
Maximum total amount of advances including temporary advance made at
any time during the year to directors or managers or officers of the banking
companies or any of them either separately or jointly with any other person 13,382,164,995 11,294,792,606
Maximum total amount of advances including temporary advances granted - -
during the year to the companies or firms in which the directors of the
banking company have interests as directors, partners or managing agents
or in the case of private companies as members
Due from bank companies - -
Amount of classified loan on which interest has not been charged,
mentioned as follows:
(Decrease) / increase in provision - -
Amount of loan written off - -
Amount realized against loan previously written off 520,051,838 3,151,927,443
Amount of provision kept against loan classified as ‘bad/loss’ on the date of
preparing the balance sheet 27,094,317,426 8,553,544,181
Interest creditable to the Interest Suspense A/c - -
Cumulative amount of the written off loan 35,251,572,000 31,517,772,000
Amount written off during the current period 3,733,696,000 3,223,600,000
Amount of written off loan for which lawsuit has been filed 35,251,572,000 31,517,772,000
7.8 Bills purchased and discounted:
In Bangladesh 1,151,028,633 1,970,180,592
5,652,702,246 7,621,454,557
7.9 Maturity grouping of bills purchased and discounted:
Payable within 1 month 5,652,702,246 7,621,454,557
Over 1 month but less than 3 months - -
Over 3 months but less than 6 months - -
6 months or more - -
5,652,702,246 7,621,454,557
7.10 Net Loans and advances:
Carrying amount 212,663,017,332 194,085,656,173
Less: Interest suspense and penal interest 7,354,912,359 6,016,338,726
Provision for loans & advances (Note-7.10a) 34,660,851,791 12,350,063,673
42,015,764,150 18,366,402,399
Net loans and advances 170,647,253,182 175,719,253,774
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
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
Charge for the year 262,712,311 181,777,639
Adjustment for disposal / transfer (27,229,665) (11,558,125)
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 SME Financing Limited 3,425,717 835,593
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

31-12-2012 31-12-2011
Taka Taka
9.1 Investment in shares of subsidiary companies

Agrani Exchange House Pvt. Limited, Singapore 6,457,000 6,457,000
Agrani Remittance House SDN. BHD., Malaysia 8,967,168 8,967,168
2,615,424,168 2,515,424,168
9.2 Suspense Account:
Sundry debtors -staff (Note - 9.2(i)) 8,150,854 14,693,001

Sundry debtors -other (Note - 9.2(i)) 518,274,558 297,258,711
Legal charges 1,691,866 720,623
Clearing adjustment 5,152,127 3,735,892
Advance against petty cash 4,900 1,515
Army pension (Note - 9.2(ii)) 4,259,800,699 3,929,127,528
Purchase of WES Bond 67,943,183 44,675,847
Loan application form 1,259,625 2,525,298
Civil pension 41,710,691 23,190,651
Payment against sanchaya patra 1,253,447,208 1,309,496,907
6,157,435,711 5,625,425,973
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.
9.2 (ii) Army Pension

This represents pension paid to Army personnel by the Bank of Tk.4,259,800,699 as per Government decision which
is reimbursable and against the amount, an amount of Tk.2,252,665,519 has been kept in sundry deposit. Moreover
an amount of Tk.1,038,857,427 has been provided in the accounts against long outstanding.
9.3 Accrued income:
Accrued interest on loans & advances 45,326,388 250,072,135

Accrued interest on investment 1,631,618,486 1,274,576,393
Accrued interest on balance with Other Banks & Financial Institutions 172,176,817 114,388,542
Accrued commission, exchange & brokerage 37,801,254 65,093,440
Accrued other operating income 58,355,427 52,533,537
1,945,278,372 1,756,664,047
9.4 Net balance with Pakistani Bank:
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.
9.5 Net Balance with Indian Bank:

Br.Code Br. Name
254 Sadarghat, Dhaka 1 1
298 J.N. College, Dhaka 1 1
341 Sadarghat, Chittagong 1 1
472 Mirjumlam, N.Gonj 1 1
4 4
Less:- Taken over liabilities of Indian Bank:

254 Sadarghat, Dhaka 1 1
298 J.N. College, Dhaka 1 1
341 Sadarghat, Chittagong 1 1
472 Mirjumlam, N.Gonj 1 1
4 4
- -
Net balance with Indian bank was Tk. 4,824,561. These amount was written off in the year 2005.
182
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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
ii) Superannuation and Gratuity provision

a. Carrying amount - (3,951,721,141)
b. Tax base - -
Taxable/(deductible) temporary difference (a-b) - (3,951,721,141)
iii) Provision for Bad & Loss Loans and Advances *

a. Carrying amount (11,184,607,367) (3,528,143,272)
b. Tax base - -
Taxable/(deductible) temporary difference (a-b) (11,184,607,367) (3,528,143,272)
iv) Temporary difference (Taxable)

a. Carrying amount at balance sheet date (i.a+ii.a+iii.a) (9,676,833,309) (6,310,736,318)
b. Tax base (i.b+ii.b+iii.b) 1,135,418,134 957,401,341
Taxable/(deductible) temporary difference (a-b) (10,812,251,443) (7,268,137,659)
v) Applicable tax rate 42.50% 42.50%
vi) Deferred tax assets (4,595,206,863) (3,088,958,505)
Less: Adjustment for Deferred Tax Liability for revaluation of Land and Building
Land (2% of total revalued amount: Tk.9,776,161,600) 196,677,097 195,523,232

Building (42.5% of total revaluation reserve of building: Tk.228,422,621) - 97,079,614
196,677,097 292,602,846
Deferred tax assets at the end of the period (4,398,529,766) (2,796,355,659)
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.

31-12-2012 31-12-2011
Taka Taka
9.8 Agrani Bank Limited has taken over the entire assets and liabilities of former Agrani bank through a Vendor’s
Agreement executed between the Government of the People’s Republic of Bangladesh and the Agrani Bank Limited
on November 15, 2007 with retrospective effect from July 01, 2007. As per clause 7(2) of the said agreement assets
& liabilities of Agrani Bank as on 30 June 2007 have been revalued by a professional Chartered Accountants firm to
determine final value of assets & liabilities of the Bank. In determining the final value, the valuation adjustment of the
Bank has been calculated at Tk.13,295,881,639 (fair value of total assets Tk.162,699,217,872 less fair value of total
liabilities Tk.173,510,899,511 minus paid up share capital as purchase consideration Tk.2,484,200,000). A decision
has been arrived at unanimously in a meeting of representatives from the Ministry of Finance, Government of the
Peoples Republic of Bangladesh, Bangladesh Bank, Security & Exchange Commission (SEC) and three state-owned
commercial banks that the valuation adjustment be shown under “Other Assets” and be gradually written off within
the next 10 (ten) years at the maximum.
9(a) Consolidated Other Assets

33,621,168,842 34,708,867,354
Less:
Investment in shares of subsidiary companies (9.1) 2,615,422,368 2,515,422,368
Receivable from Agrani SME Financing Company Limited 55,672,663 49,434,280
Receivable from Agrani Bank Limited 7,322,127 -
Receivable from Agrani Remittance House 24,354,476 16,404,523
2,702,771,634 2,581,261,171
30,918,397,208 32,127,606,183
10 Borrowing from other banks including financial institutions & agents
10.1 Classification into the following broad categories:

In Bangladesh 9,376,936,784 24,274,496,175
Outside Bangladesh 697,454,485 1,483,657,806
10,074,391,269 25,758,153,981
10.2 Segregated as:
Secured (Secured by D.P Notes and agreements) 9,376,936,784 24,274,496,175
Unsecured borrowing 697,454,485 1,483,657,806
10,074,391,269 25,758,153,981
10.3 Maturity - wise grouping:
On Demand 10,064,652,429 25,746,482,823
On Maturity 9,738,840 11,671,158
10,074,391,269 25,758,153,981
10.4 Term grouping:

10.4.1 Short Term Borrowing
T.T sold (With Sonali Bank Limited) 420,997,650 88,000,000
Balance with Bangladesh Bank Foreign Currency (Note - 10.4.1.a) 4,959,815,294 18,884,825,017
Borrowings from Local Bank & Financial Institutions (Note - 10.4.1.b) - 5,290,000,000
Borrowings from Bangladesh Bank (Repo) (Note - 10.4.1.c) 3,986,385,000 -
Credit Balance of NOSTRO Account (Annexure-E) 697,454,485 1,483,657,806
10,064,652,429 25,746,482,823
10.4.1.a Balance with Bangladesh Bank Foreign Currency:
This represents temporary overdraft from Bangladesh Bank in Foreign Currency for payment against importer with
interest at rate of LIBOR plus 1%.
10.4.1.b Borrowings from Local Bank & Financial Institutions
HSBC - 280,000,000
Sonali Bank Limited - 1,000,000,000
Dutch Bangla Bank Limited - 300,000,000
Pubali Bank Limited - 300,000,000
Standard Bank Limited - 150,000,000
United Commercial Bank Limited - 500,000,000
Habib Bank Limited - 150,000,000
State Bank of India - 210,000,000
Janata Bank Limited - 2,000,000,000
Basic Bank Limited - 200,000,000
IPDC - 70,000,000
BD Finance - 80,000,000
ULC - 50,000,000
- 5,290,000,000
184
31-12-2012 31-12-2011
Taka Taka
10.4.2 Long Term Borrowing
a) From Bangladesh Bank Counter Finance

Rural Housing Scheme 3,418,439 4,624,400
IFAD Loan -194 2,841,668 3,286,003
6,260,107 7,910,403
b) 5 & 7 Years Agrani bank Shilpa Unnayan Bond 3,478,733 3,760,755
9,738,840 11,671,158
10,074,391,269 25,758,153,981
10(a) Consolidated borrowing from other banks, financial institutions and agents

12,532,897,555 26,779,972,286
Less: Borrowing by Agrani Equity & Investment Limited 2,458,506,286 1,021,818,305
10,074,391,269 25,758,153,981
11 Deposits and other accounts
11.a Deposits and Other Accounts (Category wise)
Current & Other contin. Acc. (Note - 11.a.1) 40,337,456,741 43,714,181,929
Bills payable (Note - 11.a.2) 4,707,352,470 5,093,320,206
Saving Bank Deposits 89,255,325,065 85,320,750,025
Fixed Deposits (Note - 11.a.3) 158,129,092,861 118,080,107,936
292,429,227,137 252,208,360,096
11.a.1 Current & Other contingency account

Current Deposits 31,453,186,058 32,401,732,848
Balance with ATM 35,317,960 15,101,231
Sundry Deposits (Note - 11.a.1.1) 8,490,350,058 10,982,612,016
Call Deposits 358,602,665 314,735,834
40,337,456,741 43,714,181,929
11.a.1.1 Sundry Deposits
General Provident Fund 1,981,749,893 1,982,909,271
Margin on Bills purchased 119,472,046 175,894,897
Margin on Letters of Credit 2,598,200,543 5,074,709,494
Margin on Letters of Guarantee 307,754,070 334,187,032
Miscellaneous Margin 13,951,780 25,358,019
Foreign Currency 45,555,417 39,471,798
Key Deposit 5,104,341 2,971,766
Staff Cash Security 8,704,194 7,729,325
Foreign correspondence charges 11,032,185 5,585,296
F. C Exp. Proceeds 218,772,620 79,197,252
Commission Payable to Govt. 22,258,085 21,169,004
Clearing Adjustment 19,764,384 15,301,931
Self Employment Promotion 787,118 4,501,035
Teachers Payment 389,139,442 503,227,660
Boisko Bhata 3,135,988 4,055,400
FSSAP 191,973,635 248,256,621
Freedom Fighter Allowance 11,099,523 14,353,690
Army Pension 2,252,665,519 2,253,509,734
Small Enterprise Development 108,340,193 140,103,459
Rural Finance Programme 1,569,961 2,030,244
Hajj Deposit 1,311,613 672,027
Others 178,007,508 47,417,061
8,490,350,058 10,982,612,016
11.a.2 Bills payable
Draft payable 785,645,539 632,883,928
TT’s payable 1,728,310 2,379,348
MT’s payable 2,023,725 19,933
Pay slip issued 141,306,956 172,243,034
Pay order issued 1,598,737,961 2,173,788,798
Inland Bill proceeds Awaiting for Remit. 3,550,192 72,303,790
Foreign Bill proceeds Awaiting for Remitt. 1,961,175,994 1,848,299,521
Overdue DD payable 17,840,095 17,883,181
Upahar cheque sold A/C 75,779 66,704
Foreign D.D, T.T, & TC payable 195,267,919 173,451,969
4,707,352,470 5,093,320,206

31-12-2012 31-12-2011
Taka Taka
11.a.3 Fixed Deposits
Fixed Deposits 103,486,093,439 80,885,296,223
Special Time Deposits 29,005,600,978 29,950,911,973
Deposit Pension Scheme 1,271,432,623 1,329,778,740
Agrani Bank Pension Scheme 712,086,849 682,559,444
Month wise Fixed Deposits 2,302,880 1,352,880
Non Resident Spl. Deposits 9,677,454 5,300,020
Agrani Bank Bishesh Shanchay 8,085,958,519 5,224,908,656
Agrani Bank Monthly Income Scheme 15,152,988,328 -
Agrani Bank Monthly Deposit Scheme 402,951,791 -
158,129,092,861 118,080,107,936
11.b Maturity Grouping of Deposits and Other Accounts

Repayable on demand 36,065,286,720 36,170,324,710
Repayable within 1 month 4,707,352,470 5,093,320,206
Over 1 month but within 3 months - -
Over 3 months but within 1 year 13,533,099,946 14,167,806,142
Over 1 year but within 5 years 139,704,501,667 111,983,745,374
Over 5 years but within 10 years 98,418,986,334 84,793,163,664
292,429,227,137 252,208,360,096
11.c Geographical Location - wise Deposits

Dhaka Region 142,565,096,940 135,493,146,572
Khulna Region 18,901,669,046 15,853,759,423
Rajshahi Region 18,467,929,937 15,242,294,906
Barisal Region 10,262,921,811 7,059,659,048
Sylhet Region 13,778,783,193 12,533,115,557
Rangpur Region 9,373,358,045 7,464,121,616
Comilla Region 26,269,081,826 21,320,701,266
Faridpur Region 8,286,070,274 6,536,255,635
Outside Bangladesh - -
292,429,227,137 252,208,360,096
11.d Sector- wise Deposits

Government Sector
Presid, PM’s Office, Ministry & Judiciary 17,928,378,523 11,734,300,961
Autonomous & Semi Autonomous Bodies 23,650,316,343 20,796,595,885
41,578,694,866 32,530,896,846
Deposit money bank 7,554,214,873 7,453,547,000

Other public sector 59,686,615,408 58,209,203,659
Private sector 183,609,701,990 154,014,712,591
250,850,532,271 219,677,463,250
292,429,227,137 252,208,360,096
11.e Inter-Bank Deposits

Current Deposits 1,172,504,190 5,037,408,863
Savings Deposits 19,563,483 385,952,415
Fixed Deposits 1,777,587,804 3,023,018,019
Special Notice Time Deposits 552,387,298 590,993,324
Call Deposits 355,690 1,003,909
3,522,398,465 9,038,376,530
11(a) Consolidated Deposits and other accounts

292,430,994,303 252,211,176,819
Less:
Deposit of Agrani Equity Limited with Holding Bank 9,758,374 1,344,916
Deposit of Agrani SME Limited with Holding Bank 775,781,991 507,038,039
785,540,365 508,382,955
291,645,453,939 251,702,793,864
186
31-12-2012 31-12-2011
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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:
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)
12.2 Provision for expenses:

Provision for Interest on DPS 136,716,610 117,398,308
Provision for Interest on STD 10,229,703 10,168,784
Provision for Interest on FDR 4,228,733,061 2,885,515,890
Provision for Interest on ABPS 75,016,288 88,652,232
Provision for Interest on Borrowings 37,234,214 20,409,327
Provision for ABS 398,540,889 230,801,998
Un-disbursed Salary & Other staff benefit 1,534,450 1,216,709
Unearned discount 277,651,011 358,937,564
Provision for other expenses 112,490,615 220,370,781
Provision for Interest on ABMIS 71,285,139 -
Provision for Interest on ABMDS 15,052,377 -

31-12-2012 31-12-2011
Taka Taka
12.3 Provision for Auditors Fee
Balance at the beginning of the year 2,500,000 1,235,000
Paid during the year (2,500,000) (1,235,000)
Add back during the year - -
Provision made during the year 3,000,000 2,500,000
Balance at the end of the year 3,000,000 2,500,000
12.4 Provision for taxation:
Transferred to Provision for Income Tax during the year 1,580,000,000 4,250,000,000
Prior Years Adjustment of Provision for Taxation up to 2004 - -
Adjustment of Finalization of Tax Assessment up to 2004 - -
Income Tax assessment has been finalized up to 2004 (except 2002) and appeal pending for the year 2002, 2005,
2006 and 2007. The return has been submitted for the year 2008, 2009, 2010 and 2011. The tax assessment for the
year 2012 not yet been submitted.
12.5 Provision for Classified loans and advances:
Recoveries of amount previously written off 10,231,377 34,055,039
Specific provision for the year 25,276,133,201 4,335,788,030
Provision Add back during the year - (602,194,241)
Less: Written off/ waived (2,587,464,819) (2,691,391,822)
Provision held at the end of the year 32,120,296,362 9,421,396,603
12.6 General Provision maintained against UC loans:
Provision add back for the year (396,729,137) (68,014,433)
Provision held at the end of the year 1,834,733,863 2,193,155,000
12.7 General Provision for SMA Loans
Provision held at the end of the year 497,205,251 478,837,070
12.8 3% General reserve for consumer financing:
Reserve held at the beginning of the year 256,675,000 268,830,000
Additional reserve for the year - -
Reserve held at the end of the year 208,616,315 256,675,000
12.9 Provision for Loans & Advances
A) General provision
i) Standard (including staff Loan) * 1,834,733,863 2,193,155,000
ii) Special Mention Accounts ( SMA) 497,205,251 478,837,070
Sub total (A) 2,331,939,114 2,671,992,070
B) Specific provision
i) Substandard 1,176,127,707 232,319,855
ii) Doubtful 3,849,851,229 635,532,567
iii) Bad/Loss 27,094,317,426 8,553,544,181
Sub total (B) 32,120,296,362 9,421,396,603
Grand Total 34,452,235,476 12,093,388,673
* General provision is kept @ 1% on general loans and advances and 2% on house finance & loan for professionals
under consumer financing and 3% on consumer financing.
12.10 Provision for off balance sheet exposure:
Balance at the beginning of the year 1,079,839,185 869,305,241
Provision made during the Year 138,757,618 398,124,204
Provision add back during the Year (94,409,270) (187,590,260)
12.11 Provision for Investment:
Provision made during the Year 1,894,217,906 2,318,750,712
Provision add back during the Year (251,904,868) (2,032,990,044)
As per Bangladesh Bank letter No. DOS(SR)1153/161/2013-89 dated 25/02/2013, bank is required to keep provision
of Tk.1,7322,000,000. Against investment of shares, actual provision is kept is Tk. 1,958,098,400.
Provisions amounting Tk. 125.00 crore has been maintained against the investment in buy-back shares of Tk. 300.00 crore.
188
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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
Addition during the Year 666,812 1,439,019
Provision add back during the year (666,815) -
Protested Bills arises due to accidental loss of fraud, robbery, theft etc.
12.12.b Provision for balance with BCCI Bank- London

Amount debited during the Year 1,924,748 -
12.12.c Provision for Branch Adjustment

Provision made during the year - -
Provision add back during the year - (5,000)
12.12.d Provision for Exempted Loans & Interest on Exempted Loans

Amount debited during the Year (24,457,031) (32,983,129)
Amount Credited during the Year - 165,161
Provision add back during the year (5,589,860) (103,666,102)
12.13 Incentive Bonus:

Amount debited during the Year (559,568,674) (467,721,473)
Amount Credited during the Year - -
Add back from provision for incentive bonus of 2011 (200,000,000) (230,000,000)
Provision for the Year 430,000,000 800,000,000
12.14.a Employees super annuation fund

Amount credited during the year 35,718,767 500,075,185
Amount Transffered to SB A/C (3,788,439,536) -
Amount of pension paid during the year - (1,045,011,175)
Balance at the end of the year - 3,752,720,769
12.14.b Employees gratuity fund

Amount credited during the year 20,806,335 25,876,930
Amount Transffered to SB A/C (179,593,947) -
Amount of Gratuity paid during the year (40,212,760) (78,572,620)
Balance at the end of the year - 199,000,372
12.15 Death relief grant scheme:

Transferred to the A/c during the year 12,500,000 12,500,000
Amount paid/adjusted during the year (5,200,000) (16,700,000)

31-12-2012 31-12-2011
Taka Taka
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.
12(a) Consolidated other liabilities

70,451,809,801 46,107,303,957
Less:
Amount due of Agrani SME Financing Company Ltd. 55,672,663 49,434,280
Payable to Agrani SME Financing Company Ltd. 7,322,127 -
Amount due of Agrani Remitt. House 24,354,476 16,404,523
87,349,266 65,838,803
70,364,460,535 46,041,465,154
13 Share Capital:
13.1 Authorized Capital:
The authorized capital of the Bank is Tk.2,500 crore divided into 250,000,000 ordinary shares of Tk.100.00 each.
13.2 Issued, subscribed and fully paid up capital : 9,912,940,400 9,011,764,000
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.
13.3 Basic Earnings Per Share:

Net profit after tax (A) (18,620,572,069) 2,499,897,603
Weighted average number of ordinary shares outstanding (B) 99,129,404 99,129,404
Earnings per share (A/B) (previous year restated) (187.84) 25.22
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.
13.3(a) Consolidated Earnings Per Share:

Net profit after tax (A) (18,697,700,661) 1,607,692,736
Weighted average number of ordinary shares outstanding (B) 99,129,404 99,129,404
Earnings per share (A/B) (previous year restated) (188.62) 16.22
13.4 Minimum Capital Requirement (MCR) under Risk Based Capital (Basel-II):
Amount in Crore
A. Eligible Capital: 2012 2011
2 .Tier-2 (Supplementary Capital) - 665.47
4. Total Eligible Capital (1+2+3): (1,319.54) 1,387.45
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%
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).
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13.4(a) Consolidated Minimum Capital Requirement (MCR) under Risk Based Capital (Basel-II):
Amount in crore
A. Eligible Capital: 2012 2011
2 .Tier-2 (Supplementary Capital) - 793.53
4. Total Eligible Capital (1+2+3): (1,225.56) 1,612.30
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%
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).
13.5 Eligible Capital:

Fully Paid-up Capital / Capital lien with BB 991.29 901.18
Sub-Total: (48.58) 1,813.49
Deductions from Tier-1 (Core Capital )

Book Value of Goodwill and contingent assets which are shown as assets 664.84 797.79
Investments in Subsidiaries which are not consolidated 130.77 125.77
Shortfall in provisions required against classified loans - -
Other (if any item approved by Bangladesh Bank) 475.35 167.95
Sub Total 1,270.96 1,091.51
Total Eligible Tier-1 Capital (1,319.54) 721.98

General Provision (UC + SMA + Off B/S exposure+ Consumer Finance) 366.47 400.85
Revaluation Reserve for Approved Securities (ICB Share) up to 50% 5.86 13.47
Other (Balance of Exchange Equalization A/C) 2.63 -
Sub-Total 751.56 791.24
Deductions (Investments in Subsidiaries which are not consolidated) 130.77 125.77
Tier-3 (Eligible for market risk only)

Short-term subordinated debt - -
Total Supplementary Capital 620.79 665.47
Total Eligible Capital (698.75) 1,387.45
13.5(a) Consolidated Eligible Capital:

Fully Paid-up Capital / Capital lien with BB 991.29 901.18
Sub-Total: (85.37) 1,784.51
Deductions from Tier-1 (Core Capital)

Book Value of Goodwill and contingent assets which are shown as assets 664.84 797.79
(Note No. 13.5 (a1)
Investments in Subsidiaries which are not consolidated - -
Shortfall in provisions required against classified loans - -
Other (if any item approved by Bangladesh Bank) 475.35 167.95
Sub Total 1,140.19 965.74
Total Eligible Tier-1 Capital (1,225.56) 818.77

31-12-2012 31-12-2011
Taka Taka
General Provision (UC + SMA + Off B/S exposure+ Consumer Finance) 366.47 400.85
Revaluation Reserve for Approved Securities (ICB Share) up to 50% 5.86 13.47
Other (Balance of Exchange Equalization A/C) 2.63 2.29
Sub-Total 751.56 793.53
Deductions (Investments in Subsidiaries which are not consolidated) - -
Tier-3 (Eligible for market risk only)

Short-term subordinated debt - -
Total Supplementary Capital - 793.53
Total Eligible Capital (1,225.56) 1,612.30
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.
13.6 Risk Weighted Assets (RWA):
Risk Weighted Assets (RWA) for Amount in Crore

A. Credit Risk
On - Balance sheet 16,022.26 15,090.69
Off - Balance sheet 302.37 269.02
16,324.63 15,359.71
B. Market Risk 2,298.77 3,617.67
C. Operational Risk 2,831.90 2,433.90
Total: RWA (A+B+C) 21,455.30 21,411.28
13.6(a) Consolidated Risk Weighted Assets (RWA):
Risk Weighted Assets (RWA) for

A. Credit Risk
On - Balance sheet 15,910.07 15,075.13
Off - Balance sheet 302.37 269.02
16,212.44 15,344.15
B. Market Risk 2,817.51 4,389.53
C. Operational Risk 2,856.60 2,442.40
Total: RWA (A+B+C) 21,886.55 22,176.08
14 Statutory Reserve
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.
14(a) Consolidated Statutory Reserve

Agrani Equity & Investment Limite - -
Agrani SME Financing Limited 5,709,198 -
4,145,527,226 4,139,818,028
15 General Reserve 5,000,000 5,000,000
15(a) Consolidated General Reserve

Agrani Bank Limited 5,000,000 5,000,000
59,731,264 59,731,264
192
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16 Asset Revaluation Reserve
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
7,532,023,591 7,538,417,849
17 Revaluation & Amortization Reserve

Changes in accounting policy (269,357,597) (902,502,801)
Surplus of Amortization of Securities (HTM) 95,643,755 122,135,009
Revaluation reserve on investment in Govt. Securities (HFT) 21,532,294 147,222,588
Closing Balance 117,176,049 269,357,597
17(a) Consolidated revaluation and amortization

117,176,049 269,357,597
18 Retained surplus from profit & loss account

Operating profit before provision 10,067,376,618 14,742,599,842
Less: Amortization of Valuation Adjustment (Note - 9.8) 1,329,500,000 1,329,500,000
Profit /(loss) Before Provision & Tax 8,737,876,618 13,413,099,842
Less:
General Provision for UC loans during the year (Note - 38) (358,421,137) 276,825,567
Provision for SMA during the year (Note - 38) 18,368,181 366,770,070
Provision for Bad and Doubtful loans (Note - 38) 25,276,133,201 3,733,593,789
3% General reserve for Consumer Financing (Note - 38) (48,058,685) (12,155,000)
Other Provision (Note - 39) 2,492,601,234 1,703,082,226
27,380,622,794 6,068,116,652
Net Profit /(loss) Before Tax (18,642,746,176) 7,344,983,190
Less : Provision for Income Tax
Current tax (Note - 12.4) 1,580,000,000 4,250,000,000
Deferred tax (Note - 9.6) (1,602,174,107) 595,085,587
Net profit/(loss) after tax (18,620,572,069) 2,499,897,603
Add: Retained Profit/(Loss) for the previous period 4,978,266,572 4,493,889,607
Less: Transfer to Statutory reserve - 1,468,996,638
Less: Bonus Share Issue 901,176,400 546,524,000
Retained Profit/ (Loss) for the year (14,543,481,897) 4,978,266,572
18(a) Consolidated Retained surplus

Agrani Bank Limited (14,543,481,897) 4,978,266,572
Agrani Equity & Investment Limited (949,371,245) (831,461,483)
(14,971,828,923) 4,633,770,065
Less: Minority Interest 32 -
(14,971,828,955) 4,633,770,065
19 Foreign Currency Translation Reserve

Opening Balance 22,855,772 -
Add: Foreign Currency Translation Gain/(Loss) 3,499,058 22,855,772
Closing Balance 26,354,830 22,855,772
20 Minority Interest
Share Capital 1,800 -
Retained Earnings 32 1,800
1,832 1,800

31-12-2012 31-12-2011
Taka Taka
21 Acceptances and endorsements (contingent liabilities)

Letters of Guarantee (Note - 21.1) 5,150,104,323 4,420,450,685
Bills for Collection (Note - 21.2) 18,535,663,840 17,661,445,903
Other Contingent Liabilities (Note - 21.3) 3,660,369,424 3,634,365,482
Claims against the bank not acknowledged as debt 12,457,199,000 6,371,460,000
112,418,753,282 113,392,815,019
21.1 Letters of Guarantee
Claims lodged against the bank company, which is not recognized as debt - 6,371,460,000
Bank is contingently liable in respect of guarantee given favoring:
Directors - -
Government 36,737,694 8,094,569
Banks and other financial institutions 295,564,089 16,999,808
Foreign Banks against government counter guarantee 1,975,167,644 2,187,349,959
Others 2,842,634,896 2,208,006,349
5,150,104,323 4,420,450,685
21.2 Bills for collection:
Payable in Bangladesh 748,391,158 1,006,838,130
Payable outside Bangladesh 17,787,272,682 16,654,607,773
18,535,663,840 17,661,445,903
21.3 Other Contingent Liabilities:

Inland Travelers Cheque 38,759,000 34,751,652
Upahar Cheque 1,832,500 20,057,950
Shanchay Patra 2,994,077,924 2,432,255,880
Agrani Bank Shilpa Unnayan Bond 625,700,000 1,147,300,000
3,660,369,424 3,634,365,482
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.
21.4 Geographical Location - wise Contingent Liabilities:
Dhaka Region 104,665,108,059 105,977,449,002

Khulna Region 953,330,785 977,266,674
Rajshahi Region 1,102,203,980 829,478,392
Barisal Region 954,926,895 58,145,193
Sylhet Region 70,471,140 1,218,499,079
Rangpur Region 421,447,474 236,884,914
Mymensing Region 74,036,776 44,898,143
Comilla Region 187,588,351 819,253,970
Faridpur Region 109,803,880 33,801,847
112,418,753,282 113,392,815,019
21 (a) Consolidated Contingent Liabilities

112,418,753,282 113,392,815,019
22 The disclosures in the profit and loss account

Income:
Interest, discount and similar income 31,509,712,233 27,445,617,019
Dividend income 429,171,499 215,517,570
Fees, commission and brokerage 4,143,403,182 4,223,644,366
Gains less Losses arising from dealing in securities - -
Gains less Losses arising from investment securities - -
Gains less Losses arising from dealing in foreign currency - -
Income from non-banking assets - -
Other operating income 920,184,829 1,127,879,986
Profit less Losses on interest rate changes - -
Profit for changing interest rates on Loans & Advances - -
Loss for changing interest rates on deposit - -
37,002,471,743 33,012,658,941
194
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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
23.1 Geographical Location - wise Interest income:

Dhaka Region 14,868,944,882 14,447,313,673
Khulna Region 1,230,851,962 1,137,355,241
Rajshahi Region 855,844,465 834,349,498
Barisal Region 412,743,615 360,925,213
Sylhet Region 355,594,843 287,258,094
Rangpur Region 767,153,124 593,107,801
Comilla Region 715,865,832 610,889,208
Faridpur Region 520,875,149 391,598,537
23,894,792,205 22,434,672,794
23(a) Consolidated Interest Income:
23,984,781,264 22,434,672,794
Less: Interest on OD Account of Agrani Equity & Investment Limited 154,796,335 52,186,809
23,829,984,929 22,382,485,985

31-12-2012 31-12-2011
Taka Taka
24 Interest paid on deposits & borrowings
a. Interest paid on Deposits

Savings Deposits 2,143,416,301 2,012,770,355
Special Time Deposits 909,277,053 654,090,902
Fixed Deposits 10,351,980,616 6,740,720,452
Deposit Pension Scheme 202,707,200 209,411,787
Interest on staff provident fund 222,825,078 217,604,202
Interest paid on NFCD 1,153 113,003
Interest paid on ABPS 54,579,570 49,320,452
Interest paid on NRS Saving Deposits 2,380,800 1,112,846
Interest on ABS 552,595,342 326,769,594
Interest on MIS 711,771,400 -
Interest on MDS 19,483,976 -
Sub Total 15,171,018,489 10,211,913,593
b. Interest paid to Banks
Foreign Banks 85,732,514 44,413,901
Bangladesh Bank 114,364,573 108,491,503
Other Banks 1,544,506,458 998,389
Sub Total 1,744,603,545 153,903,793
c. Interest paid on Borrowings
Call Borrowings 1,112,384,102 892,575,209
Agrani Bank Shilpa Unnayan Bond 396,415 638,319
Discount on T.T sold 6,046,371 6,380,994
Repurchase agreement (repo) to BB 1,219,584,080 588,239,533
Repurchase agreement (repo) to Other Banks 650,479,201 96,819,917
Other Borrowings 7,543,550 15,525,235
Sub Total 2,996,433,719 1,600,179,207
Total (a+b+c) 19,912,055,753 11,965,996,593
24(a) Consolidated Interest paid on deposits & borrowings

19,912,055,753 11,965,996,593
Less: Interest on OD Account of Agrani Equity & Investment Limited 154,796,335 52,186,809
19,757,259,418 11,913,809,784
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.
25(a) Consolidated Investment Income

8,142,960,408 5,312,508,806
196
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26 Commission, exchange earnings & brokerage

Commission on bills (Foreign & Inland) 67,042,808 68,902,867
Commission DD, TT & MT (Local) 195,617,848 205,241,544
Commission on DD, TT, TC (Foreign) 24,525,758 29,707,944
Commission on Letters of Guarantee (Local) 51,145,797 38,323,757
Commission on Travelers’ Cheque - 940,476
Commission on Letters of Guarantee (Foreign) 12,129,446 5,483,470
Commission on Letter of Credit 932,438,601 946,426,976
Commission on Dividend Warrant - 470,310
Commission on Underwriting 17,922,595 17,483,566
Commission on Export bill 159,122,124 166,431,648
Commission on LIM 3,861,190 5,599,967
Commission on Army Pension Paid 9,269 1,049,647
Commission on Food procurement Bills 89,508,922 65,539,446
Foreign correspondence charges 14,163,860 13,748,691
Exchange account foreign currency 2,397,812,286 2,455,329,338
Commission on Sanchay patra 17,948,378 14,867,648
Consortium/Syndication Fee 21,150,060 68,750,173
Loan processing fee 42,611,272 51,285,248
Discount on bills 254,870 127,220
Commission on Miscellaneous 96,138,098 67,934,430
4,143,403,182 4,223,644,366
26.1 Geographical Location-wise Commission, Exchange and brokerage
Dhaka Region 3,487,619,590 3,570,889,164
Chittagong Region 210,058,351 260,431,141
Khulna Region 65,637,707 79,758,565
Rajshahi Region 80,067,583 71,139,819
Barisal Region 49,956,430 25,547,240
Sylhet Region 14,306,300 22,802,581
Rangpur Region 61,777,492 57,551,003
Comilla Region 100,291,054 69,479,794
Faridpur Region 20,847,903 20,406,641
4,143,403,182 4,223,644,366
26(a) Consolidated Commission, Exchange and Brokerage:

4,150,037,566 4,230,405,553
27 Other operating income
Rent on Immovable Properties & Godown 2,611,446 2,826,784
Rent on SD Lockers 6,029,309 5,046,356
Profit on sale of other assets 791,647 1,545,401
Postage Recoveries 104,095,912 109,154,780
Telegram Recoveries 7,113,792 7,785,844
Trunk-call Recoveries 7,050,029 4,615,832
Account Maintenance Fee 427,030,246 524,138,176
Remittance 7,129,619 9,276,251
Insurance Recoveries 10,899 952,264
Service charge on rural credit 149,243 9,013,642
Service charge on Weavers/Hosiery credit - 188,045
Service charge on Industrial credit - 295,585
Service charge on other credit 40,898,783 46,825,408
Sales proceeds on loan application form 2,015,456 3,072,327
Annual Charges on deposit A/C 52,069,098 177,664,512
Annual Charges on Loan A/C 706,442 11,292,032
Service Charges on FSS 73,668,945 72,186,720
Remuneration from Sanchaya Patra 1,936,815 1,859,799
Sale of LC/Export/Tender Schedule Form 5,249,863 6,147,535
Telephone, Telex & Swift charges 33,116,520 30,514,836
Account Closing Charge 7,865,461 9,024,541
Rebate received from Foreign bank 30,465,418 23,434,710
Proceeds realization certificate charges 6,939,154 4,902,822
Service Charges on Civil Pension paid 992,003 1,553,373
Service Charges on Deposit A/C 63,020,951 64,562,411
Others 39,227,778 -
920,184,829 1,127,879,986

31-12-2012 31-12-2011
Taka Taka
27(a) Consolidated Other Operating Income
Agrani Bank Limited 920,184,829 1,127,879,986
1,050,949,536 1,209,438,182
28 Salary and allowance etc.
Salaries- officers 1,688,100,510 1,487,946,472
Salaries- staff 374,451,813 359,361,266
Dearness allowance (Officers & Staff) - (57,494)
Fringe Benefit (Officers & staff) - (174,186)
Bonus (officers & Staff) 340,601,162 324,604,053
Banks contribution to provident fund 31,459,468 17,902,285
Banks contribution to employees pension fund 467,896,454 500,075,185
Banks contribution to gratuity fund 47,832,213 25,876,930
Conveyance allowances 3,963,408 3,165,185
Entertainment allowances 1,304,190 1,012,421
Children education allowances 25,688,002 25,891,301
Hill Allowances 3,042,158 2,879,293
Honorarium & Fees 5,678,336 25,133,638
Medical Expenses 2,911,588 2,036,016
Medical Expenses consultation fees 961,400 1,004,169
Medical allowances 106,039,587 101,800,721
Uniform and other apparels 16,122,784 16,978,512
Overtime expenses 14,111,472 11,678,471
Staff income tax 65,982,446 56,035,052
Lunch subsidy 457,039,741 414,885,313
Leave Encashment 41,375 (3,938)
Sports and cultural activities 14,104,900 9,340,182
House rent allowances (officers) 759,429,689 717,945,464
House rent allowances (staff) 184,265,402 187,653,198
Wages paid to temporary employees 75,788,416 39,025,383
Death relief grant scheme 12,500,000 12,500,000
Staff transport fare 20,270,000 17,092,921
Police & Ansar Expenses 104,204,304 76,502,130
Ex-Gratia 34,072 302,753
DMD Allowances 782,200 636,650
Other allowances 16,055,627 13,276,630
4,840,662,717 4,452,305,976
28(a) Consolidated Salary and Allowance etc.
4,914,689,602 4,482,497,194
29 Rent, taxes, insurance, lighting etc.
Rent on Premises 276,637,353 230,506,839
Rent on Godown 3,287,584 2,559,731
Lighting Charges 54,659,074 38,458,295
Insurance Charges on vehicles 3,263,418 3,370,800
Insurance Charges on property 1,669,957 1,189,125
Rates,Taxes, Ceases 18,775,236 13,597,421
Taxes on Immovable Property 228,677 69,268
Insurance Charges on Deposits 128,737,333 105,443,594
487,258,632 395,195,073
29(a) Consolidated rent, taxes, insurance, lighting etc.
508,340,020 411,665,844
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 Equity & Investment Limited 410 -
Agrani SME Financing Limited 5,480 -
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 Equity & Investment Limited 55,073 25,146
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 Exchange House Pvt. Limited Singapore 990,469 816,287
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
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 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

31-12-2012 31-12-2011
Taka Taka
35(a) Consolidated Auditors’ Fees
3,545,958 2,750,060
36 Depreciation & repairs of bank’s assets
a. Depreciation of Banks Assets:
Bank Buildings 14,851,812 7,028,213
Furniture & fixtures 36,077,663 26,372,793
Motor Vehicles 27,469,584 19,846,678
Office Equipment 14,766,459 10,232,539
Electric material 32,336,102 19,648,716
Computers 137,028,498 98,501,753
Library Books & Others 182,193 146,947
Sub total 262,712,311 181,777,639
b. Repairs & Maintenance of Banks Assets:

Bank Buildings 39,462,597 20,616,094
Furniture & fixtures 5,170,222 4,276,861
Motor Vehicles 87,952,135 81,408,495
Office Equipment 2,219,562 2,730,181
Computers 41,226,238 27,509,814
Electric Equipment & Lighting Materials 16,202,494 13,208,115
Renovation & Maintenance of Branch Premises 37,625,201 5,889,931
Sub total 229,858,449 155,639,491
Total (a+b) 492,570,760 337,417,130
36(a) Consolidated Depreciation & repairs of bank’s assets
Agrani Equity & Investment Limited 2,081,264 968,855
498,331,907 341,242,967
37 Other expenses
Conveyance/ Transportation Charges 30,674,558 25,569,599
Petroleum, Oil and Lubricants for vehicles 21,911,894 16,383,467
Petroleum, Oil and Lubricants for generator 48,176,604 22,788,003
Entertainment Charges 26,781,565 17,874,406
Entertainment (Excluding ceiling) 14,763,858 14,030,626
Traveling Expenses 56,062,161 31,718,161
Traveling Expenses (Foreign) 1,003,859 -
Remittance (Through Bank Exchanges) 9,319,110 12,721,629
Remittance (Cash) 56,027,547 43,752,419
Registration Charges 643,803 559,232
Mortgages Fee of Land/Home of SHBL 2,598,976 3,835,056
Bankers Clearing House charges 413,808 382,428
Loss on Sale of Furniture & Fixture 221,017 -
Loss on Sale of Shares and Securities 248,703 331,320,658
Loss on Sale of Properties 5,068,042 -
Loss on Sale of Other Assets 48,470 41,016
Newspapers & Periodicals 6,975,430 6,761,458
Upkeep of office premises 22,027,339 19,436,162
Business Development Expenses 88,196,195 93,900,190
Training Expenses 32,962,002 20,673,253
Washing Charges 2,143,355 2,045,675
Closing expenditure 19,444,781 15,477,512
Micro Enterprise Development Unit - 176,927
Subscription 12,862,247 6,413,265
Donation 36,210 82,958
Funeral expenses 1,295,000 966,931
Fees and commission 655,126 19,450,116
Loss on Revaluation of Security 194,277,134 89,940,899
Loss on Amortization of Securities - 600,425
Loss on Sale of Dealing with Non-Banking Assets - 1,012,296
Others 186,041,770 -
840,880,564 797,914,767
200
31-12-2012 31-12-2011
Taka Taka
37(a) Consolidated Other Expenses
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
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 - -
Provision for Other Assets:

Sundry Debtors Staff & Others 41,397,333 13,727,770
Clearing Adjustment 1,831,761 (590,040)
Army Pension Paid 403,392,773 366,145,261
Protested Bills (Note - 12.12.a) (3) 1,439,019
Branch Adjustment - (5,000)
Exempted Loans & Interest on Exempted Loans 26,547,303 (73,744,146)
Legal Charges 845,933 -
BCCI London 1,924,748 -
Sub Total 475,939,848 306,972,864
Grand Total 2,492,601,234 1,703,082,226
39(a) Consolidated Other Provision

2,492,601,234 1,703,082,226
40 Consolidated Current Tax Expense

Agrani Exchange House Pvt. Limited Singapore (50,033) (584,471)
1,613,182,818 4,257,981,794
41 Consolidated Deferred Tax Expense

Agrani Bank Limited (1,602,174,107) 595,085,587
Agrani Equity & Investment Limited 458,922 -
(1,601,715,185) 595,085,587
42 Interest Receipts in Cash

Loans & Advances 22,616,938,015 18,275,372,255
Investment 7,257,877,934 4,633,385,253
Balance with Other Banks & Financial Institutions 294,041,100 278,739,585
30,168,857,049 23,187,497,093

31-12-2012 31-12-2011
Taka Taka
42(a) Consolidated Interest Receipts in Cash
30,309,829,078 23,279,323,578
43 Interest Payments in Cash
Agrani Bank Pension Scheme (ABPS) 68,215,514 47,286,252
Agrani Bank Special Deposit Scheme (ABS) 384,856,451 209,501,354
Call Deposit - -
Deposit Pension Scheme (DPS) 183,388,898 189,206,135
Fixed Deposit Receipts 8,548,847,466 5,687,954,804
Non Resident Foreign Currency Deposit 1,153 113,003
Non Resident Saving Deposit 2,380,800 1,112,846
Savings Deposit 2,143,416,301 2,012,770,355
Special Notice Deposit 909,216,134 648,452,670
Staff Provident Fund 222,825,078 217,604,202
Borrowings 2,979,608,832 1,582,992,611
Banks & Other Financial Institutions 1,744,603,545 153,903,793
17,832,278,032 10,750,898,025
43(a) Consolidated Interest Payments in Cash

18,086,960,040 10,803,303,072
44 Cash receipts from other operating activities

Account Closing Charge 7,809,717 9,050,730
Account Maintenance Charge 427,093,029 523,250,123
Closing Charges on deposit A/C 51,893,826 178,180,094
Closing Charges on Loan A/C 724,342 11,315,601
Insurance 10,899 952,264
Miscellaneous Earnings 34,287,511 4,615,766
Postage 103,932,956 109,718,761
Proceeds realization certificate charges 6,950,354 4,899,322
Profit on sale of other assets 791,647 1,577,954
Rebate received from Foreign bank 30,465,418 23,436,396
Remittance 7,101,357 9,220,763
Rent on Properties & Godown 2,611,446 2,826,784
Rent on SD Lockers 6,029,309 5,046,356
Sales proceeds of Export Enlistment forms & Tender schedule 5,249,863 6,147,535
Sales proceeds on loan application form 2,015,456 3,072,327
Service Charge on Pension paid 802,099 1,508,186
Service Charge on Deposit A/C 63,020,951 64,562,411
Service charge on Industrial credit - 295,585
Service charge on other credit 40,883,091 46,822,433
Service charge on rural credit 61,022 9,013,642
Service Charge on weaver/hosiery credit - 188,045
Service Charges on FSSAP 73,459,977 79,698,782
Service Charges on Sanchaya Patra 1,885,163 2,703,716
Telegram 7,121,497 7,877,560
Telephone, Telex & Swift charges 33,106,143 30,493,581
Trunk-call 7,055,864 4,636,940
914,362,937 1,141,111,657
44(a) Consolidated Cash receipts from other operating activities

Agrani Bank Limited 914,362,937 1,141,111,657
Agrani Equity & Investment Limited 309,103 2,150,749
917,672,303 1,145,323,910
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
1,941,521,652 1,662,480,467
46 Operating profit before changes in operating assets & liabilities

Profit before Income Tax (17,392,746,176) 7,344,983,190
Add: Depreciation 262,712,311 181,777,639
Less: Effect of exchange rate changes (2,397,812,286) (2,455,329,338)
(19,527,846,151) 5,071,431,491
Income receivable (188,614,325) (432,736,058)
(19,716,460,476) 4,638,695,433
Expenses payable 1,431,012,764 1,132,720,517
Add: Provision & Amortization 27,821,463,234 7,397,616,652
9,536,015,522 13,169,032,602
46(a) Consolidated Operating profit before changes in operating assets & liabilities
Agrani Equity & Investment Limited (72,748,949) (112,694,701)
Agrani SME Financing Limited 50,143,304 (1,514,077)
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
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
48 Consolidated Shareholder’s Equity

Paid up Capital 9,912,940,400 9,011,764,000
Statutory Reserve 4,145,527,226 4,139,818,028
General Reserve 59,731,264 59,731,264
Asset Revaluation Reserve 7,532,023,591 7,538,417,849
Revaluation & Amortization Reserve in Govt. Securities 117,176,049 269,357,597
Retained profit/(Loss) from profit and loss account (14,971,828,955) 4,633,770,065
Foreign Currency Translation Reserve 26,354,830 22,855,772
Minority Interest 1,832 1,800
6,821,926,237 25,675,716,375

31-12-2012 31-12-2011
Taka Taka
49 Current Ratio
The Bank had the following current assets and current liabilities as on 31 December 2012 & 2011 as per liquidity statement.
Current Assets:
Cash 4,569,478,020 4,328,505,891
Balance with other banks and financial institutions 5,103,110,644 3,514,292,713
Money at call and short notice 2,700,000,000 1,000,000,000
Investment 18,092,921,084 28,501,812,377
Loans and advances 97,827,032,272 108,667,084,000
Other assets - -
Total current assets 128,292,542,020 146,011,694,981
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)
(Figure in million Taka)

Group Bank
2012 2011 2012 2011

Particular Carrying Fair Carrying Fair Carrying Fair Carrying Fair
amount value amount value amount value amount value
Financial Assets
Loans and receivable 255,879 255,879 194,833 194,833 270,859 270,859 239,543 239,543
Held to maturity 51,872 52,028 4,120 4,239 51,872 52,028 48,963 49,085
Held for trading 19,073 19,140 30,481 30,968 19,073 19,140 16,439 16,673
Available for sale 6,954 9,055 6,760 11,133 6,954 9,055 8,765 8,965
Non-Financial Assets 31,191 31,191 27,457 29,764 25,247 31,063 28,319 34,065
Total Assets 364,969 367,293 263,651 270,937 374,005 382,145 342,029 348,331
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

52 CURRENCY ANALYSIS
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
Particulars Equivalent Equivalent Equivalent Equivalent Equivalent Equivalent Equivalent

Equivalent Total Total
Taka Taka of Taka of Taka of Taka Taka of Taka of Taka of Taka of
Taka of USD Taka Taka
GBP EURO Other USD GBP EURO Other
ASSETS
Cash in Hand 3,308.18 73.14 19.03 59.25 230.77 3,690.37 3,308.18 74.45 20.14 59.80 172.60 3,635.17
Balance with Bangladesh Bank and 17,022.54 - 6.96 15.37 2.98 17,047.85 17,022.54 - 6.96 15.37 2.98 17,047.85
its agent bank
Balance with other bank and 2,883.93 2,134.83 36.26 50.80 362.15 5,467.97 2,883.93 2,192.81 36.26 59.00 121.69 5,293.69
financial institutions
Money at call and short notice 2,700.00 - - - - 2,700.00 2,700.00 - - - - 2,700.00
Investments 96,591.00 - - - - 96,591.00 92,419.81 - - - - 92,419.81
Loans and advances - - - - 212,663.02 - - - - 212,663.02
211,089.47 211,089.47
Fixed assets 11,401.57 - - - - 11,401.57 11,380.73 - - - - 11,380.73
Other assets 30,940.84 - - - - 30,940.84 44,576.37 - - - - 44,576.37
Non-banking assets - - - - - - - - - - - -
Total assets 375,937.53 2,207.97 62.25 125.42 595.90 378,929.07 386,954.58 2,267.26 63.36 134.17 297.27 389,716.64
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
53 PERFORMANCE EVALUATION 2012 2011 2012 2011
Average Cost of Deposits (%) 5.76 3.68 5.76 4.46

Average Cost of Borrowing (%) 9.52 3.48 8.82 3.48
Average Cost of Agrani Bank Shilpa Unnayan Bond (%) 10.81 15.58 10.81 15.58
Average Yield on Loans & Advances (performing loan) (%) 13.86 11.19 13.86 11.19
Average Yield on Investments (%) 9.52 13.69 9.41 16.70
Average Yield on Call loans to Bank (%) 3.57 3.55 3.57 3.55
Average Yield on Balance with other Banks (%) 23.08 12.36 14.35 12.36
Net Spread (%) 4.71 5.96 4.23 5.64
Net Interest Margin (%) 1.84 4.29 1.61 3.83
Contribution of non-interest bearing liabilities (%) 2.87 1.67 2.62 1.81
Detail of calculations is given in Annexure I.
54 Workers Participation Fund
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.

Annexure-A
Detail Information of Advances More than 10% of Bank’s Paid-up Capital ( funded & non-funded)
(Amount in Crore Tk.)
Outstanding as on December 31, 2012

Sl. No. Name of Borrower
Funded Non-funded Total (3+4) C.L Status Recovery
1 2 3 4 5 6 7
State Owned Enterprises
1 Bangladesh Petroleum Corporation 1,692.07 4,480.15 6,172.22 UC -
2 Bangladesh Power Development Board - 195.73 195.73 UC -
Sub Total 1,692.07 4,675.88 6,367.95 -
Private Sector
3 Diamond Cement Limited (1+2) 97.81 19.98 117.79 UC 43.47
4 Prime Group 134.48 50.48 184.96 UC
5 SDS International Limited 162.83 - 162.83 BL -
6 Meghna Group 86.62 4.30 90.92 UC -
7 Abul Khair Steel Limited 104.04 - 104.04 UC -
8 Apex Foods Limited 115.50 0.99 116.49 UC 1.62
9 Sad Musa Fabrics Limited (Unit -1+2+3) 74.67 54.82 129.49 UC 40.25
10 Samannaz Oil limited 101.29 - 101.29 UC 27.53
11 Bay Tanneries Limited 97.78 8.03 105.81 UC 39.27
12 Dhaka Hyde & Skins Limited 166.02 8.01 174.03 UC 9.38
13 Siddique Traders 150.92 - 150.92 BL 51.66
14 Marrine Vegetable Oil Limited 325.71 - 325.71 DF -
Sub Total 1,617.67 146.61 1,764.28 213.18
Grand Total 3,309.74 4,822.49 8,132.23 213.18
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 - -
05 Years Treasury Bond (Agrani Bank-BJMC)-2017 1 1,019,800,000 5.00 1,019,800,000 1,019,800,000 - -
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

Annexure-B.3
a.(i) Disclosure regarding outstanding Repo as on 31 December 2012:
Agreement Reversal Amount

Sl. no. Counter party name
Date Date (1st leg cash consideration)
01. Bangladesh Bank 12/30/2012 1/1/2013 3,986,385,000
02. Standard Chartered Bank 12/30/2012 1/1/2013 4,023,068,166
03. The Premier Bank Limited 12/30/2012 1/1/2013 900,307,562
Total 8,909,760,728
(ii) Disclosure regarding outstanding Reverse Repo as on 31 December, 2012:
Agreement Reversal Amount

Sl. no. Counter party name
Date Date (1st leg cash consideration)
Nil
Total
b. Disclosure regarding overall transaction of Repo and Reverse Repo:
Minimum outstanding Maximum outstanding Daily average outstanding

during the year during the year during the year
Securities sold under repo:
i) with Bangladesh Bank 967,385,000 36,085,570,000 13,028,697,415
ii) with other banks & FIs 472,589,761 7,735,186,118 4,350,143,108
Securities purchased under reverse repo: Nil
i) with Bangladesh Bank
ii) with other banks & FIs
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.

Annexure-C.2
B. Share (Un-Quoted)
Average Market Market Value Unrealised
Par Total Provision
No. of cost Rate as at as at Capital
Name of Companies Value Book Value Kept
Shares per share 31-12-2012 31-12-2012 Gain/(Loss)
Tk. Tk. Tk. Tk. Tk. Tk. Tk.
A.B.Biscuit Co ltd 378 100 100.00 37,800 - - (37,800) 37,800
Adamjee Jute Mills Ltd 30,000 10 8.16 244,800 - - (244,800) 244,800
Eastern Mercantile Bank Ltd 10,000 10 10.00 100,000 - - (100,000) 100,000
Karnafuly Rayan Chemicals 600 10 10.00 6,000 - - (6,000) 6,000
National Oxyzen Ltd 1,986 100 100.00 198,600 - - (198,600) 198,600
Paper Coverting & Pacg . 1,478 100 100.00 147,800 - - (147,800) 147,800
Spcialised Jute Manf. Co ltd 33,790 10 10.00 337,900 - - (337,900) 337,900
Swan Textile Mills Ltd 1,000 100 100.00 100,000 - - (100,000) 100,000
B. Commerce Bank Ltd 450,000 100 100.00 45,000,000 105.97 47,686,500 2,686,500 (2,686,500)
Swift Share 9 181,069181,069.46 1,629,625 181,069.46 1,629,625 (0) 0
CDBL 4,817,705 10 4.89 23,541,640 18.95 91,295,510 67,753,870 (67,753,870)
Bangladesh Fund 20,000,000 100 100.00 2,000,000,000 100.00 2,000,000,000 - -
Financial Excellence Ltd. 15,000 100 100.00 1,500,000 100.00 1,500,000 - -
FIRST AGRANI MF 50,000,000 10 10.00 500,000,000 10.00 500,000,000 - -
Karma Sangsthan Bank 300,000 100 100.00 30,000,000 118.23 35,469,000 5,469,000 (5,469,000)
ORION PHARMA PLACEMENT 5,000,000 100 100.00 500,000,000 63.83 319,150,000 (180,850,000) 180,850,000
Preference Shares
ORION Infrastructure F-1 150,000,000 10 10.00 1,500,000,000 10.00 1,500,000,000 - -
ORION Infrastructure F-2 150,000,000 10 10.00 1,500,000,000 10.00 1,500,000,000 - -
SUMMIT POWER UTTARANCHAL 605,851 100 78.57 47,602,600 100.00 47,602,600 - -
SUMMIT POWER PURBANCHAL 921,377 100 78.57 72,394,000 100.00 72,394,000 - -
IEL CONSORTIUM & ASSOCIATES LTD. 50,000,000 10 10.00 500,000,000 10.00 500,000,000 - -
Veritas Pharmaceuticals 10,000,000 10 10.00 100,000,000 10.00 100,000,000 - -
Dutch Bangla Power & Assiciates Limited 50,000,000 10 10.00 500,000,000 10.00 500,000,000 - -
Sub Total (B) 492,189,174 7,322,840,765 7,216,727,235 (106,113,530) 106,113,530
Total Quoted & Unquoted Shares (A+B) 627,471,426 16,378,058,462 14,170,381,146 (2,207,677,316) 2,271,427,316
Buy Back Shares *
Beximco Ltd 5,200,000 10 207.69 1,080,000,000 64.40 334,880,000 - -
GMG Airlines Ltd 6,383,197 10 32.90 210,000,000 25.53 162,963,019 - -
GMG Airlines Ltd 8,801,760 10 34.08 300,000,000 25.53 224,708,933 - -
GMG Airlines Ltd 3,319,673 10 33.14 110,000,000 25.53 84,751,252 - -
GMG Airlines Ltd 1,371,351 10 36.46 50,000,000 25.53 35,010,591 - -
Unique Hotel & Resorts Ltd 6,250,000 10 200.00 1,250,000,000 126.20 788,750,000 - -
Sub Total (C) 31,325,981 3,000,000,000 1,631,063,795 - -
GRAND TOTAL (A+B+C) 658,797,407 19,378,058,462 15,801,444,941 (2,207,677,316) 2,271,427,316
* Additional shares of the following companies are pledged as additional security against buy back shares.
Market Market Value

Par
No. of Rate as at as at
Name of Companies Value
Shares 31-12-2012 31-12-2012
Tk. Tk. Tk.
Beximco Limited 19,947,211 10 64.40 1,284,600,388
Shine Pukur Ceramics Ltd 9,900,000 10 32.30 319,770,000
Total 29,847,211 1,604,370,388
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
B. Additional Shares Pledged

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 19,947,211 10 - - 64.40 1,284,600,388
Shine Pukur Ceramics Ltd 9,900,000 10 - - 27.20 269,280,000
Sub Total 29,847,211 1,553,880,388
Grand Total (A+B) 61,173,192 3,000,000,000 3,184,944,183
212
Annexure - D
Debenture:
Name of organisation No.Quantity Amount (Tk)
Debenture (Unapproved)
M/S Bawa Jute mills Ltd. 1 1
M/S hotel ilisium 1 1
Pioneer Pharmacuticals Ltd 1 1
Rupon Oil & Feeds Ltd. 1 1
Bay-Sodium Chemicals Ltd 1 1
Monir Chemicals Ltd 1 1
Ismail Carpet Mills Ltd 1 1
Saleh Carpet Mills Ltd 1 1
Mirzabo steel Mills Ltd 1 1
Karnafuly Paper Mills Ltd. 1 1
Karnafuly Rayon & Chamicals Ltd. 1 1
Total (Unapproved) 11
Debenture (Approved)
Bangladesh Textile Mills Corporation 1 1
Bangladesh Textile Mills Corporation 1 1
Bangladesh Steel & Engeneering Corporation 1 1
Other Debenture (Approaved)
Bangladesh House building finance Corporation 1 140,000,000
Total (Approved) 380,000,008
Total debenture (Approved+Unapproved) 380,000,019

Annexure -E
Outside Bangladesh (Nostro Accounts):
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
Details of Advance tax and Provision of Taxation
(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
2002 2003-04 10,000,000 2nd appeal pending 75,088,642 (65,088,642) 510,581,907
2005 2006-07 35,517,654 High Court Ref. Pending - 35,517,654 224,697,050
2006 2007-08 930,815,389 High Court Ref. Pending 1,550,205,298 (619,389,909) 239,419,933
2007 2008-09 - Appeal pending 2,069,296,117 (2,069,296,117) 1,020,571,233
2008 2009-10 - Return Submitted - - 125,729,702
2009 2010-11 1,700,000,000 Return Submitted - - 84,148,956
Return not yet

2012 2013-14 1,580,000,000 - - 906,330,684
submitted
Sub total 8,994,933,042 3,694,590,057 (2,718,257,015) 6,486,620,470
Current tax has been calculated considering amortization valuation adjustment as admissible expenses from income year
2008.

216
Annexure-G
CONSOLIDATED FIXED ASSETS INCLUDING LAND, BUILDINGS, FURNITURE AND FIXTURES
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 10,400,016,812 506,306,664 299,013,822 153,879,753 244,940,644 889,456,139 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
Revaluation during the year - - - - - - - -
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
Net Book Value At:
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
FIXED ASSETS INCLUDING LAND, BUILDINGS, FURNITURE AND FIXTURES
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

Balance at January 01, 2012 112,356,725 266,559,426 215,626,645 100,803,431 157,330,235 397,624,828 2,157,044 1,252,458,334
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) (6,647,465) 1,474,200 (1,626,452) (786,861) (3,557,511) 22,419 (27,229,665)
December 31, 2012 111,100,542 295,989,624 244,570,429 113,943,438 188,879,476 531,095,815 2,361,656 1,487,940,980
Net Book Value At:

December 31, 2012 10,349,200,900 303,579,840 55,917,540 54,286,265 136,738,824 479,125,457 1,878,398 11,380,727,224
December 31, 2011 10,287,660,087 233,778,346 83,387,124 43,520,518 87,331,671 490,284,391 687,608 11,226,649,745
Annual Report 2012

217
Annexure-H
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
amortised cost
Items
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
3,690 3,690 - - - - - - - - - - - - - -
Balance with Bangladesh
Bank and agent Bank 17,048 17,048 - - - - - - - - - - - - - -
Balance with other bank
and financial institution 5,468 5,468 - - - - - - - - - - - - - -
Investments
7,432 7,432 51,872 52,028 19,073 19,140 6,954 9,055 - - - - - - - -
Loans and advance
211,089 211,089 - - - - - - - - - - - - - -
Fixed assets
- - - - - - 11,402 11,402 - - - - - -
Other assets
11,151 11,151 19,789 19,789 - - - - - -
Borrowing from other
banks, Financial
institution and agents - - - - - - - - - - - - 10,074 10,074 - -
Deposit and other
accounts - - - - - - - - - - - - 291,645 291,645 - -
Other liabilities
- - - - - - - - - - - - 2,345 2,345 63,117 63,117
Total
255,879 255,879 51,872 52,028 19,073 19,140 6,954 9,055 31,191 31,191 - - 304,065 304,065 63,117 63,117
Annexure-H1
Classification of financial instruments as per Bangladesh Financial Reporting Standard (BFRS-7)

(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
Annual Report 2012

219
Annexure-I
220
Group Bank
PERFORMANCE EVALUATION Equation 2012 2011 2012 2011
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
h) Net Spread = {(Interest Earned/Interest Earning 4.71% 5.96% 4.23% 5.64%

Assets) - (Interest Paid/Interest
Bearing Liabilities)}
i) Net Interest Margin Net Interest Income 1.84% 4.29% 1.61% 3.83%
=
Gross Earning Assets
j) Contribution of non-interest 2.87% 1.67% 2.62% 1.81%
bearing liabilities = Net Spread-Net Interest Margin
Highlights on the overall activities of the Bank
As at and for the year ended at 31 Deccember, 2012 and 2011
Group Bank
SL No Particulars
2012 2011 2012 2011
1 Paid up capital 9,912,940,400 9,011,764,000 9,912,940,400 9,011,764,000
2 Total capital/equity 6,821,926,237 25,675,716,375 7,163,476,171 25,942,624,046
3 Capital surplus/(deficit) (34,142,200,000) (6,053,080,000) (34,650,700,000) 2,120,620,000
4 Total assets 378,906,231,980 349,178,129,376 378,716,418,928 348,820,708,845
5 Total deposits 291,645,453,939 251,702,793,865 292,429,227,137 252,208,360,096
6 Total loans and advances 211,089,468,338 193,805,312,887 212,663,017,332 194,085,656,173
7 Total contingent liabilities and 112,418,753,282 113,392,815,019 112,418,753,282 113,392,815,019

commitments
8 Total classified loan to total loans (%) 25.49% 11.09% 25.30% 11.07%
9 Net classified loan to net loans 4.22% 3.44% 4.22% 3.44%
10 Amount of classified loans 53,801,251,059 21,488,484,445 53,801,251,059 21,488,484,445
11 Provisions kept against classified loans 32,120,296,362 9,421,396,603 32,120,296,362 9,421,396,603
12 Provision surplus/(deficit) - - - -
13 Credit deposit ratio (%) 72.38% 77.00% 72.72% 76.95%
14 Profit after tax and provision (18,697,700,661) 1,607,692,736 (18,620,572,069) 2,499,897,603
15 Cost of fund (%) 9.97% 7.69% 9.97% 7.69%
16 Average interest earning assets 198,421,225,020 185,119,707,928 199,270,929,340 185,119,707,928
17 Non-interest earning assets 180,485,006,960 164,058,421,448 179,445,489,588 163,701,000,917
18 Income from investments 8,142,960,408 5,312,508,806 8,044,091,527 5,226,461,795
19 Return on investment (ROI) 8.43% 6.02% 8.70% 6.12%
20 Return on Assets (ROA) (4.93%) 0.46% (4.92%) 0.72%
21 Earnings per Share (188.62) 16.22 (187.84) 25.22
22 Return on Equity (274.08%) 6.26% (259.94%) 9.64%
23 Credit Rating
As Govt. Entity
Short Term ST-1 ST-1
Long Term AAA AAA
As Commercial Bank Entity
Short Term ST-2 ST-2
Long Term A+ A+
Outlook Stable Stable
Date of Rating Declaration September 26, 2012 September 25, 2011

Financial Statements of
Islamic Banking Unit of
Agrani Bank Limited
222
Annexure-J.1
Islamic Banking Unit

Balance Sheet
As at December 31, 2012
(Amount in Taka)
PROPERTY AND ASSETS 2012 2011
Cash in hand
Cash in hand (including foreign currencies) 3,580,738 4,226,541
Balance with Bangladesh Bank and its agent (including foreign currencies) 93,502,000 21,602,000
97,082,738 25,828,541
Balance with other banks and financial institutions
In Bangladesh 461,608,807 34,187,045
Outside Bangladesh - -
461,608,807 34,187,045
Placement with other banks and financial institutions -
Investments in Share & Securities
Governments - -
Others - -
- -
Investments
General Investment etc 462,219,638 375,255,686
Bills purchased and discounted - -
462,219,638 375,255,686
Fixed assets including premises 1,181,672 1,780,039
Other assets 28,273 47,206,575
Non-banking assets 90,031,047 29,287,745
Total assets 1,112,152,175 513,545,631
LIABILITIES AND CAPITAL

LIABILITIES
Placement from other banks, financial institutions and agents - -
Deposits and other acconts
Al-wadeeah currents deposits 12,990,012 29,411,568
Mudaraba savings deposits 38,645,273 58,767,876
Mudaraba term deposits 907,769,582 104,657,076
Other Mudaraba deposits 6,850,289 16,798,295
Bills payable 745,081 360,156
967,000,237 209,994,971
Other Liabilities 145,151,938 303,550,660
Deferred tax liabilities/(Assets) - -
Total liabilities 1,112,152,175 513,545,631
Caital/Shareholders’ equity
Paid up capital - -
Statutory reserve - -
Revaluation gain/(loss) on investments - -
Other reverve - -
Surplus in profit and loss account/retained earning - -
Total shareholders equity - -
Total liabilities and shareholders equity 1,112,152,175 513,545,631

Annexure-J.2

(Amount in Taka)
2012 2011
Contingent Liabilities
Acceptances and endorsements -
Letters of Guarantee 12,829,534 8,926,850
Irrevocable letters of credit - -
Back to Back L/C 17,525,400 13,336,313
Bills for Collection 43,960,500 7,024,582
Other Contingent Liabilities - -
74,315,434 29,287,745
Other Commitments
Documentary credits and short term trade related transactions - -
Other Commitments - -
- -
Toala off-balance sheet exposures including contingent liabilities 74,315,434 29,287,745
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
Provision for investments - -

Specific Provision - -
General provision - -
Provision for off-balance sheet exposures - -
Provision for diminution in value of investments - -
Other provisions - -
Total Provision (D) - -
Total profit before taxes (C-D) 7,518,687 5,270,833

Auditor’s Report &
4 Subsidiary Companies of
Agrani Bank Limited
Auditors’ Report &
4 Subsidiary Companies of
Agrani Bank Limited
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.
Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with
Bangladesh Financial Reporting Standards (BFRS), the Companies Act 1994 and other applicable laws and regulations
and for such internal control as management determines is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
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
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.
We also report that:
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.
Syful Shamsul Alam & Co. Aziz Halim Khair Choudhury

25 March 2013
Dhaka

AGRANI EQUITY AND INVESTMENT LIMITED
Statement of Financial Position
(Amount in Taka)
Particulars Notes 31 Dec 2012 31 Dec 2011
APPLICATION OF FUND
Non-Current Assets:
Property, plant and equipments 4 7,487,687 2,417,506
Intangible assets 5 770,499 940,387
Total non-current asset 8,258,186 3,357,893

Current Assets:
Investment in shares & security 6 4,171,190,797 2,948,654,650

Margin loan 437,944,231 280,363,679
Accounts receivables 7 1,162,958 2,034,751
Advance against rent and expenditure 8 1,095,600 2,540,400
Dividend receivable 14,846,054 4,419,856
Other assets 9 215,003 3,452,137
Advance income tax 10 6,918,426 5,739,450
Cash and bank balances 11 9,758,374 1,344,916
Total current asset: 4,643,131,443 3,248,549,839
Total 4,651,389,629 3,251,907,732
Equity and Liabilities

Shareholders’ Equity:
Share capital 12 2,000,000,000 2,000,000,000
Retained earnings 13 (949,371,245) (831,461,483)
Total shareholder’s equity and liabilities 1,050,628,755 1,168,538,517
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
Total 4,651,389,629 3,251,907,732
These Financial Statements should be read in conjunction with the annexed notes.
……………… …………………….. ……………………

CEO Director Chairman
As per our annexed report of same date

Date: 25 March 2013

Dhaka
228
Statement of Comprehensive Income
(Amount in Taka)
Income
Fees , commissions etc. 16 6,634,384 6,761,187

Profit/loss on sale on investment 17 51,205,021 53,123,429
Income from margin loan 47,663,860 32,923,582
Other operational Income 18 34,057,576 16,108,492
Total Income 139,560,841 108,916,690
Expenditure
Administrative expenses 19 14,734,334 12,355,916

Financial expenses 20 154,825,450 52,215,874
Operating expense 21 1,571,753 7,291,179
Total expenditure 171,131,537 71,862,969
Net Profit/(Loss) before tax (31,570,696) 37,053,721
Provision for margin loan 22 74,009,947 17,297,941
Provision for unrealized loss on security 23 - 910,766,578
Provision for tax 24 11,870,197 8,103,892
Provision for Deferred tax 458,922 275,098
Net profit after tax (117,909,762) (899,389,788)
Earnings per share (EPS) 25 (5.90) (44.97)
……………… …………………….. …………………

As per our annexed report of same date

Date: 25 March 2013

Dhaka

Statement of Cash Flows
(Amount in Taka)
Particulars 31 Dec 2012 31 Dec 2011
A. Cash flow from operating activities

Received from fees & commission 11,926,035 149,867,106
Interest received on margin loan 47,663,860 32,923,582
Other income received 309,103 2,150,749
Dividend income 33,748,473 13,957,743
Payment to others (1,080,000) -
Payment made to others (16,721,028) (253,606,054)
Payment for CDBL expense (1,571,753) (7,291,179)
Interest paid (154,796,335) (52,186,809)
Bank charge paid (29,115) (29,065)
Investment in securities (1,171,331,126) (673,274,493)
Investment in Margin Loan (157,580,552) (97,682,941)
Advance Income Tax paid (1,178,976) (3,582,038)
Overdraft received 1,436,687,981 869,716,663
Net cash provided by/(used in) Operating activities 26,046,567 (19,036,736)
B. Cash flow from investing activities
Property Plant and Equipment (6,024,187) (1,732,323)

Other Assets (11,608,921) (3,452,137)
Net cash provided by/(used in) Investing activities (17,633,108) (5,184,460)
C. Cash flow from financing activities
Share Capital - -
Retained earnings - -
Net cash provided by/(used in) Financing activities - -
Net cash Inflow/(Outflow) 8,413,459 (24,221,196)
Opening cash and bank balances 1,344,916 25,566,113
Closing cash and bank balances 9,758,374 1,344,916
……………… …………………….. ……………………

Date: 25 March 2013

Dhaka
230
Retained
Particulars Share Capital Total Equity
Earnings
Balance on 31 December 2011 2,000,000,000 (831,461,483) 1,168,538,517

Net profit/(loss) - (117,909,762) (117,909,762)
Balance as at 31 December 2012 2,000,000,000 (949,371,245) 1,050,628,755
Balance on 31 December 2010 2,000,000,000 67,928,305 2,067,928,305

Net profit/(loss) - (899,389,788) (899,389,788)
Balance as at 31 December 2011 2,000,000,000 (831,461,483) 1,168,538,517
……………… ………………….. ……………………

Date: 25 March 2013

Dhaka

1. Background of the company
1.1 Corporate information

Agrani Bank Limited (Merchant Banking Unit) registered as a full-fledged Merchant Banker with the securities
and Exchange Commission through certificate no MB-34/2009 on 23 March 2009. Subsequently Agrani Bank
Limited (Merchant banking Unit) started their operation from 03 September 2009.
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.
1.2 Principal activities and nature of operations

The principal activities of the company comprised of merchant banking, portfolio management, issue management
& underwriting.
2. Basis of preparation
2.1 Statement of compliance

The financial statements have been prepared in accordance with First Schedule of Bank Companies Act 1991,
relevant Bangladesh Bank Circulars, International Accounting Standards (IASs), adopted by the Institute of
Chartered Accountants of Bangladesh (ICAB), named as Bangladesh Accounting Standards (BASs), the
Companies Act 1994, Securities and Exchange Ordinance 1969, Securities and Exchange Rules 1987,
Bangladesh Gazette 1996 and other laws and Rules applicable thereto.
2.2 Basis of measurement

The financial statement have been prepared on the historical cost basis.
2.3 Functional and presentational currency

These financial statements are prepared in Bangladesh Taka (Taka/Tk), which the company’s functional currency.
All financial information presented in Taka has been rounded on the nearest figuer.

The preparation of financial statements requires management to make judgments, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from the estimates. Estimates and underlying assumptions are reviewed on
an on going basis. Revision of accounting estimates are recognized in the period in which the estimate is revised
and in any future periods affected.
2.5 Reporting period

The Financial statements of the Company consistently cover the period from 01 January to 31 December 2012.
3.0 Significant Accounting Policies
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
(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.
Asset categories Rate of depreciation (%) Method of Depreciation
Furniture and fixtures 10 Straight-line

Equipment and computers 20 Straight-line
Vehicles 20 Straight-line
Building 2.50 Straight-line
(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:
Items Applicable accounting value

Unquoted Shares At cost less any impairment changes
Quoted Shares At cost price
(Considered on portfolio basis)
3.4 Revenue and expenditures
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.
(b) Investment income is recognized on cash basis after sale of shares.
(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.
(e) Documentation charge is recognized at the time of opening of investor’s account.
(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.
3.5 Cash Flow Statements

Cash Flow Statements is prepared principally in accordance with BAS 7 “Cash Flow Statements”; under direct
method.

3.6 Taxation
3.6.1 Current tax

Provision for current tax is made on the basis of the profit for the year as adjusted for taxation purpose in
accordance with the provision of Income Tax Ordinance 1984 and subsequent amendments.
3.6.2 Deferred tax
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.
3.6.3 Tax Deducted at Source

Tax deducted at source from various income of the company has been booked as advance payment of tax and
shown under current assets. Advance payment of tax is realizable (as refund) only on completion/agreement of
the respective year’s assessment.
3.6.4 Related party disclosure
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
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:
Opening balance 2,737,752 1,055,429

Add: Addition made during the year 5,924,187 1,682,323
(A) Total: 8,661,939 2,737,752
Accumulated Depreciation:
Opening balance 320,246 109,553

Add: Charged during the year 854,006 210,693
(B) Total: 1,174,252 320,246
( C ) Written down value (A-B) 7,487,687 2,417,506
Details have been shown in annexure-A
5. Software
This represents the cost value of Intangible Assets (Application Software) as on 31.12.2012. Movement of the balance
is as under:
Opening balance 1,348,893 1,298,893

Add: Addition during the year 100,000 50,000
(A) Total: 1,448,893 1,348,893
Accumulated Depreciation/ Amotization:
Opening balance: 408,506 142,344

Add: Charged during the year 269,888 266,162
(B) Total: 678,394 408,506
(C ) Written down Values (A-B) 770,499 940,387
Details have been shown in annexure-A
6 Investment in shares & security
(a) Share Quoted

Opening Balance 2,948,654,650 2,212,071,728
Add: Purchase during the year 2,699,108,041 1,286,077,624
Sub total 5,647,762,691 3,498,149,353
Less: Sales during the year 1,486,571,894 549,494,703
Total: 4,161,190,797 2,948,654,650
(b) Placement Share (Share money deposit) 10,000,000 -

Total (a+b) 4,171,190,797 2,948,654,650
7 Accounts receivable
Receivable from ISTCL 1,451,042 2,485,275

Less: Sale Proceeds in Transit 288,084 450,524
Total: 1,162,958 2,034,751

Amount in Taka
31.12.2012 31.12.2011
8 Advance against rent and expenditure
Advance rent against office premises 1,083,600 2,528,400

Sundry debtors 12,000 12,000
Total: 1,095,600 2,540,400
9 Other assets
Security deposit with CDBL 200,000 200,000

Suspense Account (other) 15,000 -
Interest receivable from margin loan 2 -
Accrued portfolio management fee 1 -
Work-in -progress - 3,252,137
Total: 215,003 3,452,137
10 Advance Income Tax
Advance Income Tax 6,918,426 3,123,850

Advance Income Tax on placement share - 2,615,600
Total: 6,918,426 5,739,450
11 Cash and bank balances
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
b) Issued, subscribed & paid-up capital:

20,000,000 ordinary shares of Tk 100 each 2,000,000,000 2,000,000,000
13 Retained earnings
Opening balance (831,461,483) 67,928,305

Add: Profit/ (Loss) for the year (117,909,762) (899,389,788)
Total: (949,371,245) (831,461,483)
14 Accounts Payable
Accounts Payable (Other) - 1,080,000

Payable to ICB Securities Trading Company Ltd. (ISTCL) 1,200,436 547,255
Payable to (DCL) 495,589 -
Total: 1,696,025 1,627,255
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
16 Fees, commissions, etc.
Settlement fee 2,572,338 2,825,032

Portfolio management fee 4,062,046 3,936,155
Total: 6,634,384 6,761,187
17 Profit/Loss on sale of investment
Profit realized on buying & selling of shares 51,205,021 53,123,429

Total: 51,205,021 53,123,429
18 Other operational income
Interest on STD A/C 300,603 2,133,024

Dividend 33,748,473 13,957,743
Sale of application form - 1,225
Documentation charge 8,500 16,500
Total: 34,057,576 16,108,492
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

Amount in Taka
31.12.2012 31.12.2011
House rent allowances (Staff) 105,867 101,871

Wages paid to temporary employees 162,312 26,887
Directors’ Fee 442,750 667,500
Directors’ allowances 60,000 60,000
Lighting charges 128,716 27,915
Rent on premises 3,149,664 3,164,112
Postages 9,199 3,207
Auditors fee 83,625 37,500
Depreciation on fixed assets 1,123,894 476,855
Repair and maintenance - furniture & fixture 9,650 5,270
Repair and maintenance - office equipments 7,500 8,200
Repair and maintenance - computer 16,220 4,530
Repair and maintenance - motor vehicle 624,000 474,000
Repair and maintenance - software 300,000 -
Telephone bill 25,925 21,768
Telephone bill (residence) 16,379 -
Up-keep 99,937 59,447
Entertainment (Excluding Ceiling) 105,129 96,912
Conveyance 34,870 13,290
Book & periodicals 1,640 -
Trade license 39,010 -
Training expenses 5,000 -
CDBL registration charge - 50,000
Payment of listing fee 100,000 50,000
Business development expenses 3,120 83,890
RJSC charges 2,258 2,904
Communication charge 69,000 72,392
Income tax advisor fee 17,250 11,500
Miscellaneous expenses 17,325 2,500
Deputation allowances 414,352 -
Service charge 108,658 -
Total: 14,734,334 12,355,916
20 Financial expenses
Bank charges & taxes 29,115 29,065

Interest on OD account 154,796,335 52,186,809
Total: 154,825,450 52,215,874
21 Operating expenses
CDBL expenses 1,571,753 7,291,179

Total: 1,571,753 7,291,179
22 Provision for margin loan and loss on investment in securities
Provision for margin loan
Provision for margin loan excluding negative equity @ 2% 6,999,647 5,294,125

Provision for margin loan on negative equity @ 100% 87,961,856 15,657,431
Sub total 94,961,503 20,951,556
Less: Provision upto 2011 (20,951,556) (3,653,615)
Total: 74,009,947 17,297,941
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
23.01 Total unrealised loss for the year 2012 1,567,780,429

Provision required Tk. 1567,780,429x20% 313,556,086
Provision already maintained 1,014,138,679
Excess provision maintained 700,582,593
Required provision is calculated @ 20% based on SEC circular ref- FxAKx/oNUkJ©/2011/662 dated 29/01/2013.
24 Provision for Tax

Provision for tax on capital gain @ 10% 5,120,502 5,312,343
Provision for tax on dividend received @ 20% 6,749,695 2,791,549
Total: 11,870,197 8,103,892
25 Earnings per Share (EPS):

Basic Earnings per Share
Profit/(Loss) for the year (117,909,762) (899,389,788)
No. of Ordinary share 20,000,000 20,000,000
(5.90) (44.97)

240
Schedule of Fixed Assets
Annexure-A
Historical Cost Depreciation

Written
down value
Balance Disposal/ Balance Balance Disposal/ Balance
Additions Charged as at 31
as at 01 adjustment as at 31 Rate of as at 01 adjustment as at 31
Particulars during the during the December
January during the December dep. January during the December
year year 2012
2012 year ,2012 2012 year 2012
Taka Taka Taka Taka % Taka Taka Taka Taka Taka
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
Total 4,086,645 6,024,187 - 10,110,832 728,752 1,123,894 - 1,852,646 8,258,186

Independent Auditors’ Report to the
Shareholders of
Agrani SME Financing Company Limited

Independent Auditors’ Report to the Shareholders of
Agrani SME Financing Company Limited
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.

Management is responsible for the preparation and fair presentation of these financial statements in accordance with
Bangladesh Financial Reporting Standards (BFRS) and Bangladesh Accounting Standards (BAS) adopted by the
Institute of Chartered Accountants of Bangladesh (ICAB), the Companies Act 1994, the Financial Institution Act 1993,
other applicable laws and regulations and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
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.
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.
Basis for Modified Opinion

As disclosed in note 2.11 the company has reported that the Revenue Recognition has been made on cash received
basis which is not in agreement with BAS-1 “Presentation of Financial Statements”. The company’s explanation regarding
this treatment is as follows:
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.
(Note 7.2) Gratuity Fund

As disclosed in Note No. 7.2 to the financial statements, the company maintains Gratuity Fund that was funded from the
salary of the employees of the company. This practice has been followed in line with practices which were followed by
SEDP Project. Legal formalities relating to Gratuity Fund is yet to be done by the company.
Report on other Legal and Regulatory Requirements.
We also report that

a) We have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purpose 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 and proper returns adequate for the purpose of our audit have
been received from branches not visited by us.
c) The Company’s balance sheet and the profit and loss account together with the annexed notes from 1 to 18
dealt with by the report are in agreement with the books of account and returns.
d) The financial statements have been drawn up in conformity with the Financial Institution Act 1993 and in
accordance with the accounting rules and regulations issued by the Bangladesh Bank.
Date: 15th May 2013

Place: Dhaka
____________________ _________________________
(Hussain Farhad & Co.) (Masih Muhith Haque & Co.)

The Agrani SME Financing Company Limited
Balance Sheet
As at 31st December, 2012
(Amount in Taka)
As at December 31, As at December 31,
Notes
2012 2011
PROPERTY AND ASSETS
Cash and equivalent: 775,810,609 507,102,629

Cash 28,618 64,590
In Hand 28,618 64,590
Balance with Bangladesh Bank and its agent bank - -
Balance with Other Banks and Financial Institution 3 775,781,991 507,038,039

Money at call and short notice: - -
Investments: - -
Loans and advances: 447,013,061 461,111,340
Loans, cash credit and overdraft etc. 4 447,013,061 461,111,340
Fixed assets, including Premises, furniture and fixtures 5 3,425,717 835,593

Other assets: 6 14,262,925 50,209,030
Non-financial institution assets:
Total assets 1,240,512,313 1,019,258,592

Liabilities:
Borrowings from other Banks, Financial Institutions and agents - -
Deposit and other accounts: - -
Other liabilities: 7 159,854,687 66,134,227
Total liabilities 159,854,687 66,134,227
Shareholders’ equity /capital:
Share Capital: 8 1,000,000,000 500,000,000
Statutory reserve 9 5,709,198 -
General reserve 10 54,731,264 454,731,264
Retained earnings / (Losses) 20,217,164 (1,606,899)
Total Shareholders’ Equity 1,080,657,626 953,124,365
Total Liabilities and Shareholders’ Equity 1,240,512,313 1,019,258,592

Contingent liabilities - -
Letters of guarantee - -
Irrevocable letters of credit - -
Indemnity Bond - -
Other commitments
Undisbursed contracted loans - -
Total Off-Balance Sheet Items - -
These financial statements should be read with the annexed notes.
______________________ ______________ _________________________

Managing Director/Director Director Company Secretary
_______________________ __________________________
(Hussain Farhad & Co. ) (Masih Muhith Haque & Co. )
244
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. - -
Net interest income 89,989,059 -

Other operating income 12 156,039 218,238
Total operating income (A) 90,145,098 218,238
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
Profit/(Loss) before amortization, provision & tax (C)=(A-B) 49,645,200 (1,606,899)
Provision for loans and advances - -

Other provision - -
Total provision (F) -
Net profit/(loss) before tax (G)= (E+F) 49,645,200 (1,606,899)
Provision for tax

Current tax 21,099,210 -
Deferred tax - -
Net profit/(loss) after tax 28,545,990 (1,606,899)
Less: Appropriations 5,709,198 -

Transferred to statutory reserve 5,709,198 -
Transferred to general reserve - -
Retained surplus 22,836,792 (1,606,899)
Earnings Per Share (EPS) 2.85 (0.32)
These financial statements should be read with the annexed notes.
_________________________ ____________ _________________________

Managing Director / Director Director Company Secretary
_______________________ ________________________

Statement of Cash Flows
(Amount in Taka)
Jan-Dec, 2012 Dec-2011
Cash flows from operating activities
Interest receipts in cash 99,885,673 218,238
Interest payments - -
Cash payment to employees (24,509,691) (118,694)
Cash receipts from other activities 156,039 -
Receipts from other operating activities - (986,371)
Payments for other operating activities (10,137,737)
Income Tax Paid (6,135,268) -
Operating profit / (loss) before changing operating assets and liabilities 59,259,016 (886,827)
(Increase) / decrease in operating assets (62,061,070) (499,900)

Loan to customers (103,673,323) -
Receivable form Agrani Bank Ltd. 41,612,253 (499,900)
Increase/(decrease) in operating liabilities 174,598,262 -

Deposit from customers - -
Other liabilities 17,340,114 -
Loan recovered from customers 157,258,148 -
Net cash from operating activities (A) 171,796,208 (1,386,727)
B. Cash flows from investing activities -

Other - -
Interest income Adjustment with Agrani Bank - -
Sales/(Purchase) of properties, plant & equipment (3,088,228) (927,800)
Net cash from investing activities (B) (3,088,228) (927,800)

Payment of long term borrowings - -
Share money Received during the period 100,000,000 230,000,000
Net cash from financing activities (C) 100,000,000 230,000,000
Net increase in cash and cash equivalents (A+B+C) 268,707,980 227,685,474

Cash and cash equivalents at the beginning of the period 507,102,629 279,417,155
Cash and cash equivalents at the end of the period 775,810,609 507,102,629
________________________ ___________ _________________________

_______________________ __________________________
246
(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
_________________________ _____________________ _________________________

________________________ __________________________
Annual Report 2012

247
248
Liquidity Statement
As at 31st December, 2012
(Amount in Taka)
Note more than 1 3-12 months Above 5 years

Particulars 1-3 months term 1-5 years term Total
month term term term
Assets
Cash in hand (including balce with Bangladesh Bank) 28,618 - - - - 28,618

Balance with other banks and financial institutions 303,100,000 472,681,991 - - - 775,781,991
Money at call and short notice -
Investments -
Loans, advances and leases 14,200,000 36,200,000 146,300,000 250,313,061 - 447,013,061
Fixed assets - - - - 3,425,717 3,425,717
Other assets 6,081,379 8,181,546 14,262,925
Total assets 317,328,618 508,881,991 152,381,379 258,494,607 3,425,717 1,240,512,312
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
1 BACKGROUND INFORMATION
1.1 Establishment and status of Agrani SME Financing Company Limited

The Agrani SME Financing Company Limited (the Company) has been incorporated as a public limited Company
on 27 October, 2010 vide certificate of incorporation No. C- 87827/10. The company has taken over the ongoing
work of Small Enterprise Development Project (A Norway and Agrani bank funded Project of Ministry of Finance,
Bangladesh) on a going concern basis through a Vendor’s Agreement signed between the Ministry of Finance of
the People’s Republic Bangladesh , the Board of Directors on behalf of the Agrani Bank Limited and the Board of
Directors on behalf of the Agrani SME Financing Company Limited on 27 December, 2011. The company has set
31 December, 2011 as the effective date of handing over the SEDP operation to Agrani SME Financing Company
Limited. The Company’s current shareholdings comprise the Agrani Bank Limited and six other shareholders
nominated by the Bank. The company has 41 branches as on 31 December, 2012 (with no overseas branch).
1.2 Nature of business

The principal activities of the company are providing support to Small and Medium Enterprises all over the country
through training programme on limited basis and providing loan to the customers.
2 SIGNIFICANT ACCOUNTING POLICIES
2.01 Statement of compliance

The financial statements have been prepared on a going concern basis following accrual basis of accounting except
for cash flow statement which is stated at in accordance with the Companies Act 1994, the Financial Institutions Act
1993, Securities and Exchange Commission’s Rules, International Accounting Standards (IAS) and International
Financial Reporting Standards (IFRS) as adopted in Bangladesh by the Institute of Chartered Accountants of
Bangladesh as Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS),
except for the circumstances where local regulations and other applicable laws and regulations differ.
The presentation of the financial statements has been made as per the requirements of DFIM Circular No.: 11,
dated December 23, 2009 issued by the Department of Financial Institutions and Markets of Bangladesh Bank.
The activities and accounting heads mentioned in the prescribed form, which are not applicable for the financial
institutions, have been excluded in preparing the financial statements.
2.02 Basis of measurement

These financial statements have been prepared based on Bangladesh Accounting Standards (BAS) and Bangladesh
Financial Reporting Standards (BFRS) and no adjustment has been made for inflationary factors affecting the
financial statements. The accounting policies, unless otherwise stated, have been consistently applied by the
Company and are consistent with those of the previous year.
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.
2.04 Presentation and functional currency and level of precision

The financial statements are presented in Bangladesh Taka (BDT) currency, which is the Company’s functional
currency. All financial information presented in BDT has been rounded off to the nearest BDT.

The preparation of financial statements in conformity with Bangladesh Accounting Standards (BAS) and Bangladesh
Financial Reporting Standard (BFRS) requires management to make estimates and assumptions that effect the
reported amounts of assets, liabilities, revenue and expenses. It also requires disclosures of contingent asset and
liabilities at the date of the financial statements.

The most critical estimates and judgments are applied to the following:
- Provision for impairment of loans,
- Gratuity
The estimates and associated assumptions are based on historical experience and various other factors that are
believed to be reasonable under the circumstances, the result of which form the basis of making the judgments
about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may
differ from these estimates. However, the estimates and underlying assumptions are reviewed on an ongoing basis
and the revision is recognized in the period in which the estimates are revised.
2.06 Directors’ responsibility statement

The Board of Directors takes the responsibility for the preparation and presentation of these financial statements.
2.07 Branch accounting

The Company has 41 branches with no overseas branch as on December 31, 2012. Accounts of the branches are
maintained at the head office from which these accounts are drawn up.
2.08 Accounting period

The financial period of the company covers period from 1st January 2012 to 31st December, 2012.
2.09 Loans and advances
2.09.1 Presentation of loans and advances

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 shown
at gross amount.
2.09.2 Provision for loans and advances

Provision for loans and advances has been made on the basis of instructions contained in Bangladesh Bank BRPD
Circular no.05 dated June 05, 2006 in relation with BCD Circular no.34 dated November 19, 1989, BCD Circular
no. 20 dated December 27, 1994, BCD Circular no. 12 dated September 4, 1995, BRPD Circular no. 16 dated
December 6, 1998, BRPD Circular no. 9 dated May 14, 2001, BRPD Circular no. 09 dated August 20, 2005 and
BRPD Circular no. 17 dated December 06, 2005.

i) Recognition and measurement (Owned assets)
Items of own property and equipment are measured at cost less accumulated depreciation and any accumulated
impairment losses. The cost of an asset comprises its purchase price and any directly attributable costs of bringing
the assets to its working condition for its intended use as per Bangladesh Accounting Standard (BAS) 16 “Property,
Plant and Equipment”.
ii) Recognition and measurement

Subsequent expenditure is capitalized only when it increases the future economic benefit from the assets and that
cost can be measured reliably. All other expenditures are recognized as an expense as and when they are incurred.
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:
Furnitures and Fixtures 10%

Motor vehicles 20%
Office equipment 20%
Electric materials 20%
Computer and computer accessories 20%
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
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.
2.12 Accounts receivable

Accounts receivable at the balance sheet date is stated at amounts which are considered realizable. Specific
allowance is made for receivable considered to be doubtful for recovery.
2.13 Cash flow statements

The cash flow statement is prepared using the direct method as stipulated in Bangladesh Accounting Standard
(BAS) 7 “Cash Flow Statements”.
2.14 Write off:

Write-off describes a reduction in recognized value. It refers to recognition of the reduced of zero value of an asset.
Generally, it refers to an investment for which a return on the investment is now impossible or unlikely. The item’s
potential return is thus canceled and removed from (“written off”) the Company’s balance sheet.
2.15 Employees benefit obligation

As disclosed in note no. 6.2 to the financial statements, the company maintains Gratuity Fund that was funded
from the salary of the employees of the company. This practice has been followed in line with practices which were
followed by SEDP Project. Legal formalities relating to Gratuity Fund has not been done.
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.
ii) Current tax

Provisions for current tax has been made on the basis of the profit for the year as adjusted for taxation purposes in
accordance with the provisions of Income Tax Ordinance, 1984 and amendments made thereto. The current tax rate
for the Company is 42.5% on taxable income.

Cash and cash equivalents comprise cash in hand, cash at bank and term deposits that are readily convertible to a
known amount of cash and that are subject to an insignificant risk of change in value.
2.18 Earning per share (EPS)

The Company calculates earning per share in accordance with Bangladesh Accounting Standards (BAS) 33
“Earnings Per Share” which has been shown in the face of the Profit and Loss Account.
2.19 Business commitments and contingencies

There was no capital expenditure contracted but not incurred or provided for at December 31, 2012 (2011: nil).
There was no material capital expenditure authorized by the Board but not contracted for at December 31, 2012.The
Company had no claim, legal or other, against it which has not been acknowledged as debt at the balance sheet date.
2.20 Related party disclosure

As per Bangladesh Accounting Standards (BAS) 24 “Related Party Disclosures”, parties are considered to be related
if one of the party has the ability to control the other party or exercise significant influence over the other party in
making financial and operating decisions. The Company carried out transactions in the ordinary course of business
on an arm’s length basis at commercial rates with its related parties. Related party disclosures have been given in
note 6.1 & 7.4.

2.21 Contingent liabilities and contingent assets
A contingent liability is a probable obligation that arises from past events whose existence will be confirmed by
occurrence or non-occurrence of uncertain future events not within the control of the Company or a present obligation
that is not recognized because outflow of resources is not likely or obligation cannot be measured reliably. At the end
of the balance sheet date the company does not have any contingent liability and contingent asset to recongnize
and disclose.
2.22 Particulars of audit committee

The audit committee of the Board was duly constituted by the Board of Directors of the Company in accordance with
the Bangladesh Banks DFIM circular no. 13 dated October 26, 2011.
The Audit Committee of the Board of Directors consisted of the following 5 (five) members of the Board:
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
2.23 Foreign remittance

There was no foreign remittance during the year 2012
2.24 Liquidity statement

The liquidity statement has been prepared in accordance with remaining maturity grouping of Assets and Liabilities
as of the close of the year as per following bases:
a) Balance with other bank and financial institutions are on the basis of their maturity term.
b) Loans and advances are on the basis of their repayment/maturity schedule.
c) Fixed assets are on the basis of their useful lives.
d) Other assets are on the basis of their adjustment terms.
e) Other liabilities are on the basis of their settlement terms.
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.

2.29 Particulars of Directors and their interest in the Agrani SME Financing Company Limited (31-12-2012)
No. of shares held in

Name and address Status Date of original appointment
the Bank
Syed Abdul Hamid Chairman and 26/07/2010 9,999,988
(Representing Agrani Bank Ltd.) Director
Khondker Sabera Islam Director 26/07/2010 2
Md. Mofazzal Hossain Director 11/08/2011 2
A. K. M. Abdur Rafique Director 26/07/2010 2
Obayed Ullah Al-Masud Director 29/02/2012 2
Haradhan Chandra Das Director 29/02/2012 2
A.K.M. Mujibur Rahman Managing Director 26/07/2010 2
and Chief Executive
Officer
2.30 Name of the Directors and their interest in different entities (31-12-2012)
Designation with Entities where they have “Position with the

Name of the Directors
Company interest Entities”
Syed Abdul Hamid Chairman and Director Agrani Bank Limited Managing Director and
Chief Executive Officer
Khondker Sabera Islam Director Independent Director outside Ex-Deputy Managing

of Agrani Bank Limited Director
Md. Mofazzal Hossain Director Agrani Bank Limited Ex - Deputy Managing

Director
A. K. M. Abdur Rafique Director Independent Director outside Research fellow
of Agrani Bank Limited
Obayed Ullah Al-Masud Director Agrani Bank Limited Deputy Managing

Director
Haradhan Chandar Das Director Agrani Bank Limited General Manager
Nazrul Islam Farazi Director Agrani Bank Limited General Manager
A.K.M. Mujibur Rahman Managing Director Agrani Bank Limited Deputy Managing
and Chief Executive Director
Officer
2.31 Comparative Information:
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.
2.32 Performance Bonus:

Performance bonus amounting to Taka 1,336,488 is charged against current year’s profit on the basis of basic salary.
254
(Amount in Taka)
Note 2012 2011
3 Balance with Other Banks and Financial Institution 775,781,991 507,038,039

Short term deposit 3.1 130,125,959 60,744,263
Fixed deposit Annex-1 645,656,032 446,293,776
3.1 Balance with Other Banks and Financial Institution
Local currency 3.1.1 130,125,959 60,744,263

Foreign currencies - -
3.1.1 Local currency Annex-3 130,125,959 60,744,263
Faridpur 57,103,820 24,450,042

Mymensingh 48,047,052 24,155,119
Head office- Dhaka 24,975,087 12,139,102
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.
4 Loans, cash credit and overdraft etc. Annex-4 447,013,061 461,111,340
4.1 Sector wise details of loans and advances

i) Agricultural industries 174,739,999 183,098,718
ii) Textiles, Apparels & Accessories 330,370 306,463
iii) Food and Beverage 4,599,806 4,312,860
iv) Pharmaceuticals 2,402,224 2,265,012
v) Leather & Leather Products, Chemicals 981,247 944,057
vi) Power, Energy & Engineering 14,248,928 13,950,388
vii) IT & Services 3,258,350 2,947,142
viii) Transportation 632,540 801,474
ix) Other industries 27,581,639 26,893,596
x) Trade & Commerce 218,237,958 225,591,630
Total 447,013,061 461,111,340
4.2 Loans and advances geographical location-wise

Urban 32,369,287 32,670,982
Faridpur 242,684,862 247,559,186
Mymensingh 171,958,912 180,881,172
Total 447,013,061 461,111,340
4.3 Details of large loan / investments

There were no clients with outstanding amount and classified loans/investments exceeding 15% of total capital of the
financial institution.
4.4 Particulars of Loans and advances

i) Loans and advances considered good in respect of which 63,282,000
the financial institution is fully secured
ii) Loans and advances considered good against which the 4,991,000
financial institution holds no security other than the debtors’
personal guarantee.
iii) Loans and advances considered good secured by the 378,740,061
personal undertaking of one or more parties in addition to
the personal guarantee of the debtors.
iv) Loans and advances adversely classified; provision not -
maintained there against

(Amount in Taka)
Note 2012 2011
v) Loans and advances due by directors or officers of the -

financial institution or any of them either separately or jointly
with any other persons.
vi) Loans and advances due from companies or firms in which -
the directors of the financial institution have interest as
directors, partners or managing agents or in case of private
companies, as members
vii) Maximum total amount of advances including temporary -
advances made at any time during the year to directors or
managers or officers of the financial institution or any of them
either separately or jointly with any other person.
viii) Maximum total amount of advances including temporary -
advances granted during the year to the companies or firms
in which the directors of the financial institutions have interest
as directors, partners or managing agents or in the case of
private companies, as member
ix) Due from bank and financial institutions -
Total outstanding 4.5 447,013,061
x) Classified Loans and advances

a) Classified Loans and advances on which interest has not 4.5 44,143,000
been charged
b) Provision on bad Loans and advances 4.6 26,537,000
c) Amount of written off Loans and advances -
Total amount realized against loans and advances previously -
written off
d) Provision kept against loans and advances classified as bad debts -
e) Interest credited to Interest Suspense Account -
xi) Cumulative amount of written off Loans and advances -
Opening Balance -
Amount written off during the year -
The amount of written off Loans and advances for which law
suits have been filed.
4.5 Classification of loans, advances and leases

Unclassified:
Standard loan 377,183,061
Special mention account (SMA) 25,687,000
Sub. Total 402,870,061
Classified
Sub-standard 5,866,000
Doubtful 3,640,000
Bad / Loss 34,637,000
Sub. Total 44,143,000
Total 447,013,061
4.6 Particulars of required provision for loans and advances
Base for Required
General Provision Rate
provision provision
Loans and Advances(Excluding SMA) 1% 377,183,061 3,771,831
Special mention account (SMA) 5% 25,687,000 1,284,350
Sub. Total 5,056,181
Specific Provision
Sub-standard 20% 4,893,000 978,600
Doubtful 50% 2,900,000 1,450,000
Bad / Loss 100% 26,537,000 26,537,000
Sub. Total 28,965,600
Total 34,021,781
Required provision for loans and advance 34,021,781
Total provision maintained (Note 6.1) 62,928,232
Excess / (short) provision at 31 December, 2012 28,906,452
256
5 Fixed assets, including Premises, furniture and fixtures
(Amount in Taka)
Value at cost Depreciation

Rate Accumulated Written
SL No. Name of assets
% depreciation down value
Opening Addition Disposal Closing Opening Charged djustment Closing
1 Motor vehicles 53 499,900 - 499,953 20% - 99,991 - 99,991 99,991 399,962
2 Computers 33 403,216 - 403,249 20% - 80,650 - 80,650 80,650 322,599
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
5 Electrical equipment 82 - - 82 20% - 16 - 16 16 66
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
Annual Report 2012

257
(Amount in Taka)
Note 2012 2011
6 Other assets: 14,262,925 50,209,030
Advance to Agrani Bank Limited - 499,900

Security deposit 1,000 1,000
Tax Deducted at Sources 6,081,379 -
Receivable from Agrani Bank Limited 6.1 7,322,127 48,934,380
DPO current account -Mymensingh 529,065 444,395
DPO current account -Faridpur 329,355 329,355
6.1 Receivable from Agrani Bank Limited 7,322,127 48,934,380
Opening balance at January 01, 2012 48,934,380 48,934,380

Receivable on account of revolving fund during the period - -
Received during the year (41,612,253) -
Closing balance at December 31 , 2012 7,322,127 48,934,380
7 Other liabilities: 159,854,687 66,134,227
Provision for loans and advances 7.1 62,928,232 52,612,818

Gratuity fund 7.2 14,362,766 12,320,332
Provision for expenses 7.3 421,741 510,000
Provision for performance bonus 2,007,268 -
Payable to Agrani Bank (Reimbursement of bank staff benefits) 1,906,282
Provision for Gratuity 756,473 -
Provision for Tax 21,099,210 -
Faridpur Zonal office 18,354 -
Benevolent fund 15,420 -
Income tax Payable 35,396 100,196
VAT Payable 1,624 1,624
Payable to Agrani Bank 7.4 55,672,663 -
CPO Current Account 509,257 509,257
Provision for audit fees 120,000 80,000
7.1 Provision for loans and advances 62,928,232 52,612,818

Add: Addition during the period - -
Risk fund 2% 8,574,289 -
Risk Coverage Fund 1% 1,741,125 -
Less: Transfer during the period - -
7.2 Provision for gratuity fund 14,362,766 12,320,332

Add: Transfer during this period 670,780
Add: Interest on Gratuiry Fund FDR 1,667,956 -
Less: Payment during the period (296,302) -
7.3 Provision for expenses 421,741 510,000
Opening balance at January 01, 2012 510,000 -

Add: Addition during the period 7.3.1 271,741 360,000
Less: Transfer during the period 360,000 150,000
Closing balance at December 31 , 2012 421,741 510,000
7.3.1 Provision for expenses added during this period 271,741 -

Provision for Closing expenses 68,600 -
Provision for Consultancy fee 50,000 -
Provision for lunch subsidy 25,200 -
Provision for director allowance 10,000 -
Provision for rates & taxes 117,941 -
7.4 Payable to Agrani Bank Ltd. 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 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
The authorized capital of the company is Taka 5,000,000,000

divided into 50,000,000 ordinary shares of Taka. 100.00
each.
8.2 Issued, subscribed and fully Paid up Capital :

Opening balance 500,000,000 500,000,000
Add: Issued bonus share 400,000,000 -
Add: Issued right share 100,000,000 -
Closing balance 1,000,000,000 500,000,000
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.
8.3 Capital Adequacy Ratio (CAR)

In terms of section 13(2) of the Bank Companies Act, 1991 and Bangladesh Bank BRPD ciruclers nos. 01,14,10
and 05 dated January 08, 1996, November 25, 2002 and May 14, 2007 respectively required a capital of the Bank
at the close of the busines on 31 December 2012 was Taka 74,509,138 as against available core capital of Taka
1,080,657,626 and supplementary capital of Taka 5,056,181 making the total capital of Taka 1,085,713,807 thereby
showing a surplus capital/equity of Taka 1,011,204,669 at that date. Details are shown below:
Total Asset including off balance sheet items 1,240,512,313

Total risk weighted asset 745,091,377
Required capital (10% of risk weighted asset) 74,509,138
Actual Capital Held 1,085,713,807
Core Capital 8.3.1 1,080,657,626
Supplementary Capital 8.3.2 5,056,181
Total Capital Surplus/ (deficit) 1,011,204,670
Capital Adequacy Ratio (CAR) Based on Basel II framework

2012
Capital requirement: Required Held
Tier -I (Minimum) 5% 145%
Tier -II (Balancing) 5% 1%
Total 10% 146%
8.3.1 Core Capital (Tier -I) 1,000,000,000

Paid-up Capital 5,709,198
Statutory Reserve 54,731,264
General Reserve 20,217,164
Retained earnings 1,080,657,626
8.3.2 Supplementary Capital (Tier - II)

General Provision maintained against unclassified loans 5,056,181
General Provision @ 1% against off balance sheet exposures -
Asset revaluation reserve -
Revaluation reserve for equity instruments up to 10% -
Revaluation on investment -
5,056,181
Total Actual Capital Maintained 1,085,713,807
9 Statutory reserve
Opening balance - -
Add: Transfer from appropriation of profit 5,709,198 -
Closing Balance 5,709,198 -
10 General reserve 54,731,264 454,731,264

Opening balance 454,731,264 454,731,264
Add: Transfer from appropriation of profit - -
Less: Issuing bonus share (400,000,000) -
Closing balance 54,731,264 454,731,264

(Amount in Taka)
Note 2012 2011
11 Interest income
Interest on loans and advances Annex-2 37,850,277 -
Interest on short term deposit Annex-2 2,443,433 -
Interest on fixed deposit Annex-1 59,591,963 -
Less: Adjustment with Agrani bank (9,896,614) -
Total inocme 89,989,059 -
12 Other Operating Income 156,039 218,238

Duplicate certificate fees 10,300
Training Fees 127,250 218,238
Miscellaneous income 18,489
13 Salaries & Allowances: 29,550,444 118,694

Salaries 20,303,057 118,694
Incentive Bonus 746,959 -
Lunch Subsidy 2,898,680 -
Wages Paid 186,479 -
Bonus 2,223,597 -
Conveyance Allowances 78,914 -
Performance bonus 1,336,488 -
Overtime 349,017 -
Gratuity 1,427,253 -
14 Rent, Taxes, Insurance, Electricity etc. 2,758,404 797,085

Rent, rate and taxes 2,491,606 797,085
Insurance 52,585 -
Power and electricity 214,213 -
15 Postage, Stamps, Telecommunication etc.: 166,606 -

Telephone charges (Office) 118,053 -
Telephone charges (Residence) 6,162 -
Postages 42,391 -
16 Stationery, Printing, Advertisement etc.: 1,169,990 4,320

Newspaper & periodicals 150,492 -
Advertisement & publicity 92,698 -
17 Managing Director’s Salary and benefits 120,000 360,000

Managing Director’s position in the company is being held by the
Deputy Managing Director of Agrani Bank Ltd, as ex-officer, as such
no other remuneration is paid except Tk 10,000 per month as charge
allowance.
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
19 Other Expenses: 5,715,870 372,216

Petroleum, oil & lubricant for vehicles 2,741,406 -
Travelling expenses(Inland) 425,583 -
Training expenses 221,704 -
Upkeep of office premises 187,530 -
Business development expenses 96,196 -
Repairs-motor vehicles 541,578 -
Repairs-furniture & fixtures 11,070 -
Repairs-office equipment 58,048 -
Repairs & maintenance of computer 38,754 -
Repairs elect. Equipment & lighting materials 36,945 -
E-mail & internet 42,597 -
Consultancy Fees 425,000 -
Closing Expenses 68,600 -
Bank Charge 427,924 181,772
Other charges 58,329 40,444
20 Prior years adjustment 1,012,729 -

Loan Outstanding 251,949 -
Rectification of bank balance 90,000 -
performance bonus Payable 670,780 -
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

262
Schedule of Fixed Deposit With other Banks
Annex-1
(Amount in Taka)
Principal Value as on Interest Tax deducted Bank Maturity/ Value as on

Branch name Addition
amount 31.12.2011 received at source charge Others Transfer 31.12.2012
Total bad debt fund 37,350,000 34,775,123 5,814,400 3,912,298 302,516 39,895 33,799 827,945 43,297,666
Total company fund 643,591,112 391,470,392 262,660,253 54,675,943 5,511,216 71,000 - 124,709,306 578,515,066
Total gratuity fund 19,039,680 11,036,288 8,639,821 1,807,672 139,716 1,700 - 9,366,642 11,975,723
Total loan risk coverage fund 10,500,000 9,011,973 2,200,000 1,003,722 76,263 15,455 24,530 231,871 11,867,577
Grand Total 446,293,776 279,314,474 61,399,635 6,029,711 128,050 58,329 135,135,764 645,656,032
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
Annex-1 61,399,635 6,029,711

Gratuity fund 1,807,672 139,716
Balance transferred to interest income 59,591,963 5,889,995

Schedule of Interest Income
As at 31st December 2012
(Amount in Taka) Annex-2
Interest on Deposit
Interest on
SL Revolving Interest Bad Risk Principal
Branch Loans & Credit Gratuity TA
No Loan Income Debt Coverage Branch 2012
Advance Fund Fund fund
Fund Fund Fund Fund Acc
Mymensingh zone
1 Bhaluka 845,216 16,860 3,629 2,659 936 - - - - 869,300
2 Fulbaria 471,946 8,383 2,389 4,320 2,400 - - - - 489,438
3 Gafargaon 794,098 38,969 18,320 11,186 3,672 - - - - 866,245
4 Gouripur 739,001 14,308 4,017 4,261 2,827 - - - - 764,414
5 Haluaghat 668,969 - 3,904 2,965 776 - - - - 676,614
6 Ishwarganj 720,444 31,857 4,040 1,620 - - - - - 757,961
7 Mym. Sadar 881,721 20,569 4,348 1,437 2,490 - - - - 910,564
8 Muktagacha 812,744 18,621 1,107 1,415 777 - - - - 834,664
9 Nandail 418,624 8,304 - 2,580 800 - - - - 430,308
10 Phulpur 790,525 9,957 4,185 10,248 5,324 - - - - 820,239
11 Trishal 1,208,465 37,220 7,966 2,623 - - - - - 1,256,274
12 Kishore. Sadar 1,173,032 41,231 4,035 3,839 3,317 - - - - 1,225,453
13 Karimganj 821,595 - 3,739 2,611 1,137 - - - - 829,082
14 Katiadi 315,557 9,019 551 3,329 918 - - - - 329,374
15 Jamalpur Sadar 1,176,698 38,211 17,827 2,082 3,348 - - - - 1,238,166
16 Sherpur Sadar 70,967 845 138 7,867 5,546 - - - - 85,363
17 Netro. Sadar 291,869 33,923 142 1,214 3,423 - - - - 330,571
18 Kendua 290,726 44,461 1,588 2,547 575 - - - - 339,897
19 Modhupur 366,580 42,355 3,155 2,152 2,889 - - - - 417,131
20 Gopalpur 538,994 48,524 44,885 3,074 2,216 - - - - 637,693
21 Tangail - - - - - - -
22 Mymensingh DPO - - - - - - -
Sub total 13,397,768 463,616 129,964 74,029 43,371 - - - - 14,108,749
Faridpur zone
23 Zilla Parishad 1,932,666 30,475 6,827 2,169 1,549 - - - - 1,973,686
24 Charvadrashan 672,474 55,108 2,554 2,514 3,288 - - - - 735,938
25 Sadarpur 1,251,368 39,593 4,050 3,770 1,080 - - - - 1,299,861
26 Bhanga 1,294,133 138,085 4,524 7,795 2,916 - - - - 1,447,453
27 Nagarkanda 1,122,506 12,284 3,701 2,269 848 - - - - 1,141,608
28 Boalmari 2,925,226 135,196 9,522 3,296 1,242 - - - - 3,074,482
29 Naliajamalpur 2,336,170 - 5,644 2,795 198 - - - - 2,344,807
30 Rajbari 1,620,368 28,564 5,073 2,840 1,243 - - - - 1,658,089
31 Pangsha 1,237,183 7,877 3,752 4,505 1,413 - - - - 1,254,730
32 Ahladipur 744,495 31,240 2,524 2,456 2,814 - - - - 783,529
33 Gopalgonj 1,670,425 29,140 2,851 2,220 1,838 - - - - 1,706,474
34 Tungipara 742,534 - 1,953 1,986 1,158 - - - - 747,631
35 Kotalipara 1,243,186 56,179 4,130 3,388 2,925 - - - - 1,309,808
36 Madaripur 1,806,005 28,858 4,225 2,240 2,806 - - - - 1,844,133
37 Kalkini 1,065,602 6,436 4,740 4,963 3,979 - - - - 1,085,720
38 Takerhut 1,134,908 33,096 2,880 964 - - - - - 1,171,848
39 Borhamgonj 738,705 14,816 2,755 5,047 4,004 - - - - 765,327
40 Shariatpur 914,555 49,632 1,625 2,215 2,758 - - - - 970,785
41 Faridpur DPO - - - - - - - -
Sub total 24,452,509 696,579 73,331 57,433 36,059 - - - - 25,315,911
Dhaka CPO
42 Amin Court 395,693 50,663 446,357
43 Pilot Phase 12,979 12,979
44 Motijheel 405,051 2,864 1,200 600 409,715
Sub total - 800,744 2,864 1,200 600 - 50,663 - 12,979 869,051
Grand total 37,850,277 1,960,940 206,159 132,661 80,030 - 50,663 - 12,979 40,293,710
Interest income
Interest on loans and advances 37,850,277
Interest on short term deposit 2,443,433
Total interest income 40,293,710
Less: Adjustment with Agrani bank 9,896,614
Recognised income 30,397,096

Fund wise Cash at Bank
Revolving Interest Risk Principal
SL Bad debt Credit Gratuity
Branch Loan income coverage TA fund Branch 2012 2,011
No fund fund fund
fund fund fund Acc
Mymensingh zone
1 Bhaluka 1,441,700 242,970 37,208 31,851 - - - - 1,753,729 282,109
2 Fulbaria 1,135,336 156,397 17,339 69,086 - - - - 1,378,158 845,370
3 Gafargaon 2,010,085 312,242 477,378 103,407 - - - - 2,903,112 2,274,641
4 Gouripur 1,733,699 194,614 79,375 81,192 - - - - 2,088,879 449,596
5 Haluaghat 1,903,473 177,678 278,523 45,700 - - - - 2,405,375 534,151
6 Ishwarganj 1,811,015 93,400 163,234 36,087 - - - - 2,103,736 690,121
7 Mym. Sadar 1,846,935 315,075 38,989 1,054 - - - - 2,202,053 728,497
8 Muktagacha 2,849,521 199,728 72,360 88,286 - - - - 3,209,894 525,213
9 Nandail 1,724,378 95,880 233,305 51,308 - - - - 2,104,871 3,475,109
10 Phulpur 1,606,200 204,882 115,758 67,980 - - - - 1,994,820 1,470,903
11 Trishal 2,141,551 452,976 101,881 2,306 - - - - 2,698,715 1,687,443
12 Kishore. Sadar 2,381,808 403,321 50,839 9,394 - - - - 2,845,363 964,133
13 Karimganj 3,315,430 331,022 34,947 79,420 - - - - 3,760,818 580,281
14 Katiadi 980,212 132,271 139,954 71,359 - - - - 1,323,797 610,444
15 Jamalpur Sadar 2,222,624 615,241 211,910 1,600 - - - - 3,051,376 1,637,150
16 Sherpur Sadar 1,587,770 10,147 224,112 156,059 - - - - 1,978,088 1,061,956
17 Netro. Sadar 2,221,085 248,571 54,987 111,850 - - - - 2,636,493 2,219,304
18 Kendua 1,601,070 157,008 57,045 19,584 - - - - 1,834,707 1,385,136
19 Modhupur 2,329,640 625,126 77,896 94,660 - - - - 3,127,321 1,068,992
20 Gopalpur 1,750,170 549,507 157,384 70,447 - - - - 2,527,508 1,608,065
21 Tangail 56,189 - - - - - - - 56,189 56,189
22 Mymensing DPO - - - - - - 62,054 - 62,054 318
Sub total 38,649,891 5,518,055 2,624,423 1,192,630 - - 62,054 - 48,047,052 24,155,119
Faridpur zone
23 Zilla Parishad 4,009,175 434,219 99,542 23,708 - - - - 4,566,644 2,016,250
24 Charvadrashan 2,413,310 167,531 103,097 106,748 - - - - 2,790,686 2,780,099
25 Sadarpur 2,685,798 530,462 158,896 29,725 - - - - 3,404,881 1,857,452
26 Bhanga 6,987,808 455,368 333,787 83,708 - - - - 7,860,671 2,725,939
27 Nagarkanda 872,709 175,967 73,059 33,123 - - - - 1,154,858 1,299,787
28 Boalmari 7,421,688 853,090 220,321 17,826 - - - - 8,512,925 1,984,650
29 Naliajamalpur 3,744,625 577,317 59,628 11,964 - - - - 4,393,534 2,828,915
30 Rajbari 1,911,616 448,314 164,304 45,159 - - - - 2,569,393 1,188,040
31 Pangsha 1,261,206 308,568 159,919 12,194 - - - - 1,741,886 438,357
32 Ahladipur 1,776,507 196,214 109,777 18,944 - - - - 2,101,442 966,993
33 Gopalgonj 2,017,100 712,191 39,183 7,914 - - - - 2,776,389 1,014,255
34 Tungipara 659,747 234,289 27,610 41,329 - - - - 962,975 678,942
35 Kotalipara 2,491,609 414,776 101,941 84,083 - - - - 3,092,409 1,172,010
36 Madaripur 2,004,379 439,793 151,699 99,675 - - - - 2,695,546 689,736
37 Kalkini 699,960 313,226 111,049 129,520 - - - - 1,253,756 347,072
38 Takerhut 1,650,603 310,183 107,161 26,734 - - - - 2,094,681 734,388
39 Borhamgonj 1,436,179 176,458 216,577 128,088 - - - - 1,957,302 1,136,979
40 Shariatpur 2,825,930 255,447 89,518 2,449 - - - - 3,173,344 571,484
41 Faridpur DPO - - - - - - 500 - 500 18,697
Sub total 46,869,947 7,003,413 2,327,069 902,892 - - 500 - 57,103,820 24,450,042
Dhaka CPO
42 Amin Cort - - - - - 460,542 - 7,142,273 7,602,815 187,835
43 Pilot Phase - - - - - - - 332,851 -
44 Motijheel 2,191,701 3,746,673 4,044,620 1,059,437 561,345 - - 5,435,646 17,039,421 11,951,267
Sub total 2,191,701 3,746,673 4,044,620 1,059,437 561,345 460,542 - 12,910,770 24,975,087 12,139,102
Grand total 87,711,538 16,268,140 8,996,111 3,154,959 561,345 460,542 62,554 12,910,770 130,125,959 60,744,263
264
Schedule of Loan Outstanding (Principal)
As at 31st December 2012
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

AGRANI EXCHANGE HOUSE
PRIVATE LIMITED
(Incorporated in the Republic of Singapore)
Co. Reg. No. 200200048D
REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS
FINANCIAL YEAR ENDED 31 DECEMBER 2012
266
AGRANI EXCHANGE HOUSE PRIVATE LIMITED
Co. Reg. No. 200200048D
REPORT OF THE DIRECTORS

The directors present their report to the member together with the audited financial statements of the Company for the
financial year ended 31 December 2012.
The directors of the Company in office at the date of this report are as follows:
Dr. Khondoker Bazlul Hoque

Syed Abdul Hamid
Mohammad Shams Ul Islam
ARRANGEMENTS TO ENABLE DIRECTORS TO ACQUIRE BENEFITS BY MEANS OF THE ACQUISITION OF

SHARES AND DEBENTURES
Neither at the end of the financial year nor at any time during the financial year did there subsist any arrangement to
which the Company is a party, being arrangements whose objects are, or one of whose objects is, to enable the directors
of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other
body corporate.
DIRECTORS’ INTERESTS IN SHARES OR DEBENTURES

According to the register kept by the Company for the purposes of section 164 of the Singapore Companies Act, Chapter
50, the interests of the directors who held office at the end of the financial year in the shares of the Company were as
follows:
Direct interest
At beginning At end of
of financial financial
Name of directors year year
The Company
(Ordinary shares)
Dr. Khondoker Bazlul Hoque - -

Syed Abdul Hamid - -
Mohammad Shams Ul Islam - -
Md. Ali Hossain Prodhania - -
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.
DIRECTORS’ CONTRACTUAL BENEFITS

Except as disclosed in the financial statements, since the end of the previous financial year, no director of the Company
has received or become entitled to receive a benefit 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.

SHARE OPTIONS
During the financial year, there were:

• no options granted by the Company to any person to take up unissued shares of the Company; and
• no shares issued by virtue of any exercise of option to take up unissued shares of the Company.
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.
On behalf of the Board of Directors
……………………………………..
CEO & Director
……………………………………..
Chairman
19 March 2013
268
Co. Reg. No. 200200048D
STATEMENT BY DIRECTORS
In the opinion of the directors,
(a) the accompanying financial statements set out in the following sections of the financial statements:
• Statement of Comprehensive Income

• Statement of Financial Position
• Statement of Changes in Equity
• Statement of Cash Flows
• Notes, comprising a summary of significant accounting policies and other explanatory information
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.
On behalf of the Board of Directors
……………………………………..
CEO & Director
……………………………………..
Chairman
19 March 2013

INDEPENDENT AUDITOR’S REPORT TO THE MEMBER OF
Co. Reg. No. 200200048D
Report on the Financial Statements

We have audited the accompanying financial statements of Agrani Exchange House Private Limited (the “Company”),
which comprise the statement of financial position as at 31 December 2012, and the statement of comprehensive
income, statement of changes in equity and statement of cash flows for the financial year then ended, and a summary
of significant accounting policies and other explanatory information.

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with
the provisions of the Singapore Companies Act, Chapter 50 (the “Act”) and Singapore Financial Reporting Standards,
and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance
that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised
and that they are recorded as necessary to permit the preparation of true and fair profit and loss account and balance
sheet and to maintain accountability of assets.
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.
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.
Report on Other Legal and Regulatory Requirements

In our opinion, the accounting and other records required by the Act to be kept by the Company have been properly kept
in accordance with the provisions of the Act.
C.C. YANG & CO.

PUBLIC ACCOUNTANTS AND
CERTIFIED PUBLIC ACCOUNTANTS
SINGAPORE
19 March 2013
270
STATEMENT OF COMPREHENSIVE INCOME
(Expressed in Singapore Dollars)
2012 2011
Note
$ $
Revenue 1,050,390 743,579
Other Items of Income
Other Income 3 31,578 27,374
Other Items of Expense
Employee Benefits Expense 4 (413,657) (263,830)

Depreciation and Amortisation Expense 7 (36,946) (33,846)
Other Expenses 5 (452,483) (345,174)
Profit (Loss) Before Tax from

Continuing Operations 178,882 128,103
Income Tax Benefit (Expense) 6 766 9,248
Profit (Loss) from Continuing

Operations, Net of Tax 179,648 137,351
Profit (Loss) Net of Tax 179,648 137,351
Other Comprehensive Income
Other Comprehensive Income, Net of Tax - -
Total Comprehensive Income $ 179,648 $ 137,351
The accompanying notes form an integral part of these financial statements

STATEMENT OF FINANCIAL POSITION
as at 31 December 2012
2012 2011
Note
$ $
ASSETS
Non-Current Assets
Property, Plant and Equipment, Total 7 102,740 42,693
Total Non-Current Assets 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
Total Current Assets 1,654,093 1,741,546
Total Assets $ 1,756,833 $ 1,784,239
EQUITY AND LIABILITIES
Equity
Share Capital 10 200,000 200,000
Retained Earnings (Accumulated Losses) 1,252,714 1,073,066
Other Reserves, Total - -
Total Equity 1,452,714 1,273,066
Non-Current Liabilities
Deferred Tax Liabilities 11 6,413 6,645
Total Non-Current Liabilities 6,413 6,645
Current Liabilities
Income Tax Payable, Current - 534
Trade and Other Payables, Current 12 297,706 503,994
Total Current Liabilities 297,706 504,528
Total Liabilities 304,119 511,173
Total Equity and Liabilities $ 1,756,833 $ 1,784,239
272
STATEMENT OF CHANGES IN EQUITY
Retained
Total Share Earnings
Equity capital (Accumulated
Losses)
Note $ $ $
Opening Balance at 01/01/2012 1,273,066 200,000 1,073,066
Total Comprehensive
Income for the Period 179,648 - 179,648
Closing Balance at 31/12/2012 $ 1,452,714 $ 200,000 $ 1,252,714
Opening Balance at 01/01/2011 1,135,715 200,000 935,715
Total Comprehensive
Income for the Period 137,351 - 137,351
Closing Balance at 31/12/2011 $ 1,273,066 $ 200,000 $ 1,073,066

STATEMENT OF CASH FLOWS
2012 2011
Note
$ $
Cash Flows From Operating Activities

Profit (Loss) before Tax 178,882 128,103
Total Adjustments 32,974 26,987
Depreciation of Property,
Plant and Equipment 36,946 33,846
Interest Income (3,972) (6,859)
Operating Cash Flows before

Changes in Working Capital 211,856 155,090
Total Changes in Working Capital (225,388) 197,200
Decrease (Increase) in Other Receivables, Current (19,100) 354

Increase (Decrease) in Trade
and Other Payables, Current (206,288) 196,846
Cash Flows From (Used In) Operations (13,532) 352,290

Income Taxes Paid (659) (4,634)
Interest Received 8,509 15,226
Income Tax Received - 10,008
Net Cash Flows From (Used In)

Operating Activities (5,682) 372,890
Cash Flows From Investing Activities

Purchase of Property, Plant and Equipment (96,993) (13,705)

Investing Activities (96,993) (13,705)
Cash Flows From Financing Activities

Fixed Deposits - Pledged 206,884 (464)
Increase in Advances to Staff (13,400) -
Decrease in Amount Due to Holding Company - (85,241)

Financing Activities 193,484 (85,705)
Net Increase (Decrease) in Cash

and Cash Equivalents 90,809 273,480
Cash and Cash Equivalents,
Statement of Cash Flows, Beginning Balance 1,500,360 1,226,880
Cash and Cash Equivalents,

Statement of Cash Flows, Ending Balance 9 $ 1,591,169 $ 1,500,360
274
Co. Reg. No. 200200048D
NOTES TO THE FINANCIAL STATEMENTS – 31 DECEMBER 2012
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.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Company have been prepared in accordance with Singapore Financial Reporting
Standards (FRS) and the applicable requirements of the Singapore Companies Act.
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.
The financial statements are presented in Singapore dollars.
2.2 Changes in accounting policies

The accounting policies adopted are consistent with those of the previous financial year except in the current
financial year, the Company has adopted all the new and revised standards and Interpretations of FRS (INT
FRS) that are relevant to its operations and effective for annual periods beginning on or after 1 January 2012.
The adoption of these standards and interpretations did not have any effect on the financial performance or
position of the Company.

2.3 Standards issued but not yet effective
The Company has not adopted the following standards and interpretations that have been issued but are only
effective for annual financial periods beginning on or after the respective dates.
Effective 1 July 2012
Amendments to FRS 1 - Presentation of Items of Other Comprehensive Income
Effective 1 January 2013
Revised FRS 19 - Employee Benefits

FRS 113 - Fair Value Measurements
Amendments to FRS 107 - Disclosures – Offsetting Financial Assets and
Financial Liabilities
Improvements to FRSs 2012:
Amendments to FRS 1 - Presentation of Financial Statements

Amendments to FRS 16 - Property, Plant and Equipment
Amendments to FRS 32 - Financial Instruments : Presentation
Effective 1 January 2014
Revised FRS 27 - Separate Financial Statements

Revised FRS 28 - Investments in Associates and Joint Ventures
FRS 110 - Consolidated Financial Statements
FRS 111 - Joint Arrangements
FRS 111 - Disclosure of Interests in Other Entities
Amendments to FRS 32 - Offsetting Financial Assets and Financial
Liabilities
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.
Amendments to FRS 1 Presentation of Items of Other Comprehensive Income
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.
FRS 112 Disclosure of Interests in Other Entities

FRS 112 is a new and comprehensive standard on disclosure requirements for all forms of interests in other
entities, including joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles.
FRS 112 requires an entity to disclose information that helps users of its financial statements to evaluate the
nature and risks associated with its interests in other entities and the effects of those interests on its financial
statements. The Company is currently determining the impact of the disclosure requirements. As this is a
disclosure standard, it will have no impact to the financial position and financial performance of the Company
when implemented in 2014.
2.4 Property, plant and equipment

All items of property, plant and equipment are initially recorded at cost. Subsequent to recognition, property,
plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment
losses. The cost includes the cost of replacing part of the property, plant and equipment. The cost of an item of
property, plant and equipment is recognised as an asset if, and only if, 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.
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:-
Furniture & fittings 3 years

Office equipment 3 years
Renovation 3 years
Fully depreciated assets are retained in the accounts until they are no longer in use and no further charge for
depreciation is made in respect of these assets.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in
circumstances indicate that the carrying value may not be recoverable.
The residual value, useful life and depreciation method are reviewed at the end of each reporting year to ensure
that the amount, method and period of depreciation are consistent with previous estimates and the expected
pattern of consumption of the future economic benefits embodied in the items of property, plant and equipment.
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 de-recognition of the asset is included in the profit
or loss in the financial year the asset is derecognised.
2.5 Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired.
If any such indication exists, or when an annual impairment assessment for an asset is required, the Company
makes an estimate of the asset’s recoverable amount.
An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell
and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows
that are largely independent of those from other assets or group of assets. Where the carrying amount of an
asset or cash-generating unit exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount. In assessing value in use, the estimated future cash flows expected to be
generated by the asset 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. In determining fair value
less costs to sell, recent market transactions are taken into account, if available. If no such transactions can be
identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples or
other available fair value indicators.
Impairment losses are recognised in the profit or loss except for assets that are previously revalued where the
revaluation was taken to other comprehensive income. In this case, the impairment is also recognised in other
comprehensive income up to the amount of any previous revaluation.
An assessment is made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates
the asset’s or cash-generating unit’s recoverable amount. A previously recognised impairment loss is reversed
only if there has been a change in the estimates used to determine the asset’s recoverable amount since the
last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its
recoverable amount. That increase cannot exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised previously. Such reversal is recognised in the profit or loss
unless the asset is measured at revalued amount, in which case the reversal is treated as a revaluation increase.
2.6 Financial assets

Financial assets are recognised on the statement of financial position when, and only when, the Company
becomes a party to the contractual provisions of the financial instrument. The Company determines the
classification of its financial assets at initial recognition.
Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market are
classified as loans and receivables. Such assets are initially recognised at fair value, plus directly attributable
transaction costs and subsequently carried at amortised cost using the effective interest method less impairment.
Gains and losses are recognised in the profit or loss when the loans and receivables are derecognised or
impaired, and through the amortisation process.

A financial asset is derecognised when the contractual right to receive cash flows from the asset has expired. On
derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the
consideration received and any cumulative gain or loss that has been recognised directly in other comprehensive
income is recognised in the profit or loss.
The Company classifies the following financial assets as loans and receivables:
• Cash and short term deposits
• Other receivables
2.7 Impairment of financial assets

The Company assesses at the end of each reporting year whether there is any objective evidence that a financial
asset or group of financial assets is impaired and recognises an allowance for impairment when such evidence
exists.
If there is objective evidence that an impairment loss on loans and receivables carried at amortised cost has
been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and
the present value of estimated future cash flows discounted at the financial asset’s original effective interest
rate. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current
effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account. The
impairment loss is recognised in the profit or loss.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment was recognised, the previously recognised impairment
loss is reversed to the extent that the carrying amount of the financial asset does not exceed its amortised cost
at the reversal date. The amount of reversal is recognised in the profit or loss.

Cash and cash equivalents comprise cash and bank balances and fixed deposits that are readily convertible to
known amounts of cash and which is subject to an insignificant risk of changes in value.
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.
2.10 Financial liabilities

Financial liabilities are recognised on the statement of financial position when, and only when, the Company
becomes a party to the contractual provisions of the financial instrument. The Company determines the
classification of its financial liabilities at initial recognition.
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
Defined contribution plan

As required by law, the Company makes contributions to the Central Provident Fund (CPF) scheme in Singapore,
a defined contribution pension scheme. CPF contributions are recognised as compensation expenses in the
same period as the employment that gives rise to these contributions.
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.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and
the revenue can be reliably measured, regardless of when the payment is made. Revenue is measured at the
fair value consideration received or receivable, taking into account contractually defined terms of payment and
excluding taxes or duty. The following specific recognition criteria must also be met before revenue is recognised:
Revenue from rendering of services is recognised upon completion and delivery of services to the customers.
Interest income is recognised using the effective interest method.
2.14 Income taxes
(i) Current tax

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to
be recovered from or paid to the Income Tax Authorities. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted at the end of the reporting year.
Current taxes are recognised in the profit or loss except to the extent that the tax relates to items recognised
outside profit or loss, either in other comprehensive income or directly in equity. Management periodically
evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are
subject to interpretation and establishes provisions where appropriate.
(ii) Deferred tax

Deferred tax is provided, using the liability method, on all temporary differences at the end of the reporting
year between the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes.
Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax
credits and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused tax credits and unused tax
losses can be utilised.
The carrying amount of deferred tax asset is reviewed at the end of each reporting year and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred tax asset to be utilised.
Unrecognised deferred tax assets are reassessed at the end of each reporting year and are recognised
to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be
recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or
substantively enacted at the end of each reporting year.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred
tax items are recognised in correlation to the underlying transaction either in other comprehensive income
or directly in equity.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the
same taxation authority.
(iii) Sales tax

Revenues, expenses and assets are recognised net of the amount of sales tax except:
• Where the sales tax incurred on a purchase of assets or services is not recoverable from the taxation
authority, in which case the sales tax is recognised as part of the cost of acquisition of the asset or as part
of the expense item as applicable; and
• Receivables and payables that are stated with the amount of sales tax included.
The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the statement of financial position.
2.15 Foreign currency transactions

Transactions in foreign currencies are measured and recorded in Singapore dollars on initial recognition at
exchange rates approximating those ruling at the dates of transactions. Monetary assets and liabilities
denominated in foreign currencies are translated at the rate of exchange ruling at the end of the reporting year.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in foreign
currency are translated using the exchange rates at the date when the fair value was determined.
Exchange differences arising on the settlement of monetary items or on translating monetary items at the end of
the reporting year are recognised in the profit or loss.
2.16 Share capital

Proceeds from issuance of ordinary shares are recognised as share capital in equity. Incremental costs directly
attributable to the issuance of ordinary shares are deducted against share capital, net of any tax effects.
2.17 Significant accounting judgements and estimates

The preparation of the Company’s financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure
of contingent liabilities at the end of each reporting year. However, uncertainty about these assumptions and
estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset
or liability affected in the future periods.
Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the end of each
reporting year, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed below. The Company based its assumptions and estimates
on parameters available when the financial statements were prepared. Existing circumstances and assumptions
about future developments, however, may change due to market changes or circumstances arising beyond the
control of the Company. Such changes are reflected in the assumptions when they occur.
Useful lives of property, plant and equipment

The cost of property, plant and equipment is depreciated on a straight-line basis over the property, plant and
equipment estimated useful lives. Management estimates the useful lives of these property, plant and equipment
to be 3 years. Changes in the expected level of usage and technological developments could impact the
economic useful lives of these assets, therefore, future depreciation charges could be revised. The carrying
amounts of the Company’s property, plant and equipment at the end of the reporting year are disclosed in Note
7 to the financial statements.
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
$ $
SME cash grant 5,000 5,000

Other interest income 3,972 6,859
Miscellaneous income 22,606 15,515
$ 31,578 $ 27,374
4. EMPLOYEE BENEFITS EXPENSE
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
The following items have been included in arriving at other expenses:
2012 2011
$ $

General expenses 9,124 6,533
Insurance 12,969 10,301
Rental expense 188,430 164,800
Rental of software 48,424 36,350
Security service 22,833 18,782
Telecommunication 19,986 21,971
Transportation 15,064 11,422
Utilities 22,600 21,074
6. INCOME TAX EXPENSE
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)

6. INCOME TAX EXPENSE (Cont’d)
The reconciliation between the tax benefit and the product of accounting profit multiplied by the applicable
corporate tax rate for the years ended 31 December 2012 and 2011 is as follows:
2012 2011
$ $
Profit before income tax $ 178,882 $ 128,103
Tax expense calculated at

tax rate of 17% (2011 - 17%) 30,410 21,778
Expenses not deductible

for tax purposes 1,788 695
Income not subject to tax (850) (850)
Productivity and innovation credit (33,748) (22,711)
Singapore statutory stepped

income exemption - (1,384)
Tax loss carry back to previous year 2,168 -
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 $-
7. PROPERTY, PLANT AND EQUIPMENT, TOTAL

Furniture Office
Renovation Total
2012 & fittings equipment
$ $ $ $
Cost:
At 1.1.2012 29,524 124,711 65,060 219,295
Additions 10,443 38,500 48,050 96,993
At 31.12.2012 39,967 163,211 113,110 316,288
Accumulated depreciation:
At 1.1.2012 21,854 100,474 54,274 176,602
Depreciation
for the year 5,347 20,885 10,714 36,946
At 31.12.2012 27,201 121,359 64,988 213,548
Net book value:
At 31.12.2012 $ 12,766 $ 41,852 $ 48,122 $ 102,740
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
At 31.12.2011 29,524 124,711 65,060 219,295
Accumulated
depreciation:
At 1.1.2011 17,118 80,342 45,296 142,756

Depreciation
for the year 4,736 20,132 8,978 33,846
At 31.12.2011 21,854 100,474 54,274 176,602
Net book value:
At 31.12.2011 $ 7,670 $ 24,237 $ 10,786 $ 42,693
8. OTHER RECEIVABLES, CURRENT
2012 2011
$ $
Interest receivables 1,555 6,092

Security deposits 40,960 22,960
Advances for staff housing deposits 13,400 -
Prepayments 6,350 5,250
$ 62,265 $ 34,302
9. CASH AND CASH EQUIVALENTS
Cash and cash equivalents included in the statement of cash flows comprise the following amounts:
2012 2011
$ $
Fixed deposits 747,508 953,030
Cash balance 206,096 418,488

Bank balances 637,565 335,726
843,661 754,214
1,591,169 1,707,244
Less: Fixed deposits pledged - (206,884)
Cash and cash equivalents $ 1,591,169 $ 1,500,360
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.

10. SHARE CAPITAL
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.
11. DEFERRED TAX LIABILITIES
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
$ $ $
Balance at 1.1.2011 7,077 - 7,077
Charged (Credited) to profit

or loss – 2011
- Current year (Note 6) (3,006) - (3,006)
- Underprovision in respect
of prior year (Note 6) 2,574 - 2,574
Balance at 31.12.2011 6,645 - 6,645
Charged (Credited) to profit

or loss – 2012
- Current year (Note 6) 4,219 (4,451) (232)
Balance at 31.12.2012 $ 10,864 $ (4,451) $ 6,413
12. TRADE AND OTHER PAYABLES, CURRENT
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
13. OPERATING LEASE COMMITMENTS

At the end of the reporting year, the Company was committed to making the following payments in respect of
rental commitments under non-cancellable operating leases:
2012 2011
$ $
Leases which expire:
Within one year 102,000 60,000
Later than one year but within five years 132,000 30,000
$ 234,000 $ 90,000
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.
Compensation of key management personnel
2012 2011
$ $
Directors
Salaries, fees and
other related costs $ 98,789 $ 85,567
Other than the directors, there are no other key management personnel.
15. FINANCIAL INSTRUMENTS
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.
Financial risk management objectives and policies
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.

The Company ensures that there are adequate funds available to meet all its operational requirements.
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
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.
Foreign currency risk
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.
Equity price risk
The Company has no exposure to equity price risk.
Capital risk management
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 Company is not subject to any externally imposed capital requirements.
16. FAIR VALUE OF FINANCIAL INSTRUMENTS
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.
Financial instruments whose carrying amounts approximate fair values
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.
17. AUTHORISATION OF FINANCIAL STATEMENTS
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
SUPPLEMENTARY INCOME STATEMENT A
STATEMENT OF REMITTANCE TRANSACTIONS B

APPENDIX A
SUPPLEMENTARY INCOME STATEMENT
2012 2011
$ $
REVENUE 1,050,390 743,579
Add:
OTHER INCOME
SME cash grant 5,000 5,000

Interest income 3,972 6,859
Miscellaneous income 22,606 15,515
31,578 27,374
1,081,968 770,953
Less:
EXPENSES
Accounting fee 4,200 3,800

Advertisement 3,700 904
Auditors’ remuneration 4,000 3,600
Bank charges 48,903 3,372
Business development 5,012 -
Casual labour 32,764 33,075
CPF 4,699 4,976
Depreciation 36,946 33,846
Directors’ fee 4,000 4,000
General expenses 9,124 6,533
Insurance 12,969 10,301
Licence fee 5,250 5,250
Medical expenses 11,361 6,135
Newspaper & periodicals 256 391
Postage & courier 2,548 1,980
Professional & legal fee 2,200 5,173
Rental expense 188,430 164,800
Repair and maintenance 3,778 4,878
BALANCE BROUGHT FORWARD 404,266 310,831
BALANCE CARRIED FORWARD 404,266 310,831
Rental of software 48,424 36,350

Salaries and bonuses 356,055 211,340
Secretarial fee 3,530 4,816
Security service 22,833 18,782
Staff welfare 4,778 4,304
Telecommunication 19,986 21,971
Transportation 15,064 11,422
Travelling 5,550 1,960
Utilities 22,600 21,074
903,086 642,850
PROFIT BEFORE INCOME TAX $ 178,882 $ 128,103
The above statement does not form part of the

audited statutory financial statements of the Company
288
APPENDIX B
STATEMENT OF REMITTANCE TRANSACTIONS
2012 2011
$ $
Total volume of outward remittances

$ 154,497,666 $ 113,279,160
Number of remittance transactions for the year

209,784 152,397
The above statement does not form part of the

audited statutory financial statements of the Company

AGRANI REMITTANCE HOUSE SDN. BHD.
Company No. 706823-M
(Incorporated in Malaysia)
REPORTS & FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012
AHAMAD NAINA MYDIN & ASSOCIATES (AF:0938)

Chartered Accountants
(Member Firm of Malaysian Institute of Accountants)
Lot 1, First Floor
14 Jalan Kemuja
Bangsar Utama
59000 Kuala Lumpur
290
Company No. 706823-M (Incorporated in Malaysia)
CORPORATE INFORMATION
BOARD OF DIRECTORS : DR. KHONDOKER BAZLUL HOQUE

SYED ABDUL HAMID
MOHAMMAD SHAMS-UL-ISLAM
MANTU KUMAR BISWAS
SAID ABU HASSAN BIN SAID ABUL FAZAL
MD. WALI ULLAH
COMPANY SECRETARIES : NIK HISHAM BIN NIK ABD HALIM

(BC/N/290)
: FAKIHAH BINTI AZAHARI
(BC/F/078)
REGISTERED OFFICE : SUITE 13.01, 13TH FLOOR

TOWER BLOCK PLAZA PEKELILING
JALAN TUN RAZAK
50400 KUALA LUMPUR.
PRINCIPAL PLACE OF BUSINESS : 14-16, JALAN HANG KASTURI

50050 KUALA LUMPUR.
AUDITORS : AHAMAD NAINA MYDIN & ASSOCIATES

AF: 0938
CHARTERED ACCOUNTANTS
PRINCIPAL BANKERS : MALAYAN BANKING BERHAD

RHB BANK BERHAD

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:-
DR. KHONDOKER BAZLUL HOQUE Chairman

SYED ABDUL HAMID
MOHAMMAD SHAMS-UL-ISLAM
MANTU KUMAR BISWAS
SAID ABU HASSAN BIN SAID ABUL FAZAL
MD. ABUL BASHAR (Resigned w.e.f. 13.05.2012)
MD. WALI ULLAH Chief Executive Officer (Appointed w.e.f. 13.12.2012)
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.
RESERVES AND PROVISIONS

There were no material transfers to and from reserves or provisions during the year.
292
ISSUE OF SHARES AND DEBENTURES
The Company has not issued any shares or debentures during the financial year.
BAD AND DOUBTFUL DEBTS

Before the income statement and the balance sheet were made out, the directors took reasonable steps to ascertain
that action has been taken in relation to the writing off of bad debts and the making of allowance for doubtful debts, and
had satisfied themselves that all known bad debts have been written off and that adequate allowance has been made
for doubtful debts.
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.
CONTINGENT AND OTHER LIABILITIES

At the date of this report, there does not exist :
i) any charge on the assets of the company which has arisen since the end of the financial year which secures the
liabilities of any other person ; or
ii) any contingent liability which has arisen since the end of the financial year.
No contingent or other liability has become enforceable, or is likely to become enforceable within the period of twelve
months after the end of the financial year which, in the opinion of the directors, will or may effect the ability of the company
to meet its obligations as and when they fall due.
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.
ITEMS OF AN UNUSUAL NATURE

The results of the operations of the Company for the year ended 31 December 2012 were not, in the opinion of the
directors, substantially affected by any item, transaction or event of a material and unusual nature.
EVENTS SUBSEQUENT TO BALANCE SHEET DATE

There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction
or event of a material and usual nature likely, in the opinion of the directors, to affect substantially the results of the
operations of the Company for the financial year in which this report is made.
OPTIONS
No option has been granted during the year ended covered by the income statement to take up unissued shares of the
Company.

AUDITORS
The retiring auditors, MESSRS. AHAMAD NAINA MYDIN & ASSOCIATES, have indicated their willingness to be re-
appointed in accordance with Section 172(2) of the Companies Act, 1965.
SIGNED ON BEHALF OF THE BOARD OF DIRECTORS IN ACCORDANCE WITH A RESOLUTION OF THE

DIRECTORS
___________________________
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
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
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.
Directors’ responsibility for the financial statements
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
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.
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
We believe that audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

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.
Report on the other legal and regulatory requirements

In accordance with the requirements of the Company’s Act, 1965 in Malaysia, we also report that in our opinion, the
accounting and other records and the registers required by the Act to be kept by the Company have been properly kept
in accordance with the provisions of the Act.
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

Agrani Remittance House SDN. BHD.
Balance Sheet
2012 2011
Notes
RM RM
Assets
Non-current Assets 3 81,024 69,991
Property, plant and equipment 81,024 69,991
Current Assets 4,875,289 3,243,319

Other receivable and deposits 15,070 16,770
Tax recoverable 78,264 70,701
Fixed deposit placed with licensed bank 2,000,000 2,000,000
Cash and bank balances 4 2,781,955 1,155,848
Total Assets 4,956,313 3,313,310
EQUITY AND LIABILITIES

Equity and liabilities attributable to equity holders of the
company
Shareholders’ Equity 1,821,546 1,809,455

Share Capital 5 1,000,000 1,000,000
Retained Earnings 821,546 809,455
Current Liabilities 3,134,767 1,503,855

Trade Payables 2,202,882 859,233
Other Payables and Accurals 4,000 4,820
Amount due to Holding Company 6 927,885 639,802
Total Equity and Liabilities 4,956,313 3,313,310
The accompanying notes form an integral part of thses financial statements.
298
Income Statement
2012 2011
Notes
RM RM
Revenue 7 943,759 583,875
Gross Profit 943,759 583,875
Add: Other Income 35,250 59,942
Less: Operational Expenditure
Administrative Expenses (868,855) (566,593)
Distributive Expenses (20,235) (10,506)
Other operating Expenses (62,842) (50,863)
(951,932) (627,962)
Profit from operation 8 27,077 15,855
Finance Expenses (4,949) (4,211)
Profit before Taxation 22,128 11,644
Taxation 10 (10,037) (7,304)
Net Profit for the year after taxation 12,091 4,340

Accumulated
Share Capital Total
Profit
RM RM
RM
As at 01.01.2011 500,000 805,115 1,305,115

Issued during the year 500,000 - 500,000
Net Profit for the year after taxation - 4,340 4,340
As at 31.12.2011 1,000,000 809,455 1,809,455
As at 01.01.2012 1,000,000 809,455 1,809,455

Net Profit for the year after taxation - 12,091 12,091
As at 31.12.2012 1,000,000 821,546 1,821,546
300
Cash Flow Statement
2012 2011
RM RM
Cash flows from operating activities
Profit before taxation 22,128 11,644

Adjustments for:
Depreciation of property, plant and equipment 29,282 24,380
Operating loss before working capital changes 51,410 36,024
Changes in Working Capital
Receivables 1,700 (4,770)

Payables 1,342,829 588,571
1,344,529 583,801
Cash generated from operations 1,395,939 619,825
Tax paid (17,600) (31,824)
Net cash generated from operating activities 1,378,339 588,001
Cash flows from investing activities
Purchase of properties, plant & equipment (40,315) (42,289)

Proceeds from issue of share capital - 500,000
Net cash from investing activities (40,315) 457,711
Cash flows from financing activities
Advance by/repayment to holding company 288,083 (243,282)

Net cash from financing activities 288,083 (243,282)
Net increase in cash and cash equivalents 1,626,107 802,430
Cash and cash equivalents at the beginning of the year 3,155,848 2,353,418
Cash and cash equivalents at the end of the year 4,781,955 3,155,848
Cash and Cash equivalent comprise of:

Cash in hand 2,257 7
Cash at bank 2,779,698 1,155,841
Fixed Deposit 2,000,000 2,000,000
4,781,955 3,155,848

NOTES TO THE FINANCIAL STATEMENTS
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.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Company have been prepared under the historical cost convention,
unless otherwise stated in the individual accounting policies set out below and comply with the
provisions of the Companies Act, 1965 and the Financial Reporting Standards issued by Malaysian
Accounting Standards Board (MASB).
The preparation of financial statements in conformity with the applicable FRS in Malaysia requires
the use of certain accounting estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the financial year. It also
requires the directors to exercise their judgements in the progress of applying the Company accounting
policies. Although these estimates and judgements are based on the directors’ best knowledge of
current events and actions, actual results may differ.
2.2 Significant Accounting Policies

(a) Property, plant and equipment and depreciation
All property, plant and equipment were initially stated at cost. Properties which have been
subsequently revalued, are stated at valuation less accumulated depreciation and impairment
loss, if any. All other property, plant and equipment are stated at historical cost less accumulated
depreciation and impairment loss, if any. The policy for the recognition and measurement of
impairment losses is in accordance with Note 2.2(e).
Cost includes expenditure that is directly attributable to the acquisition of the asset. When
significant parts of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items of property, plant and equipment.
The cost of replacing part of an item of property, plant and equipment is included in the asset’s
carrying amount or recognised as a separate asset, as appropriate, only when it is probable that
the future economic benefits associated with the part will flow to the Company and its cost can be
measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and
maintenance are charged to the income statement as incurred.
Depreciation is charged on a straight line basis so as to write off the costs of the assets to their
residual values over the term of their estimated useful lives. The annual rates used for this purpose
are as follows:-
Furniture and fittings 20%
Office equipment 20%
Renovation 20%
Computer 20%
Electrical material 20%
The residual values, useful lives and depreciation method are reviewed, and adjusted if appropriate,
at each balance sheet date.
Fully depreciated assets are retained in the accounts until the assets are no longer in use.
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.

Reversals of impairment losses are credited to the income statement in the year in which the
reversals are recognised, unless it reverses an impairment loss on a revalued asset, in which
case it is credited directly to revaluation surplus. Where an impairment loss on the same revalued
asset was previously recognised in the income statement, a reversal of that impairment loss is
also recognised in the income statement.
(f) Employee Benefits

(i) Short term employee benefits
Wages, salaries, allowances, social security contribution, bonuses and non-monetary benefits
are recognised as an expense in the year in which the associated services are rendered by
the employees.Short term accumulating compensated absences such as paid annual leave
are recognised when services are rendered by employees that increase their entitlement
to future compensated absences, and short term non-accumulating compensated absences
such as sick leave are recognised when the absences occur.
(ii) Post-employment benefits
The Company contributes to the Employees’ Provident Fund, the national defined contribution
plan. The contributions are charged to the income statement in the period to which they
are related. Once the contributions have been paid, the Company has no further payment
obligations.
(g) Cash and Cash Equivalents

Cash and cash equivalents for the purpose of cash flow statement comprise cash in hand and
bank balances.
304
3. Property, Plant and Equipment
Cost
As at As at
Additions Disposal
01.01.2012 31.12.2012
Renovation 27,550 - - 27,550

Furniture and Fittings 60,799 10,080 - 70,879
Office Equipment 21,538 16,420 - 37,958
Computer 60,331 13,815 - 74,146
Electric Material 10,868 - - 10,868
181,086 40,315 - 221,401
Accumulated Depriciation
As at As at
Additions Disposal
01.01.2012 31.12.2012
Renovation 5,510 5,510 - 11,020

Furniture and Fittings 40,111 12,391 - 52,502
Office Equipment 6,456 5,932 - 12,388
Computer 56,656 3,275 - 59,931
Electric Material 2,362 2,174 - 4,536
111,095 29,282 - 140,377
Net Book Value

2012 2011
RM RM
Renovation 16,530 22,040

Furniture and Fittings 18,377 20,688
Office Equipment 25,570 15,082
Computer 14,215 3,675
Electric Material 6,332 8,506
81,024 69,991
4. Cash and Bank Balance
Cash and cash equivalents comprise of:

Cash in hand 2,257 7
Cash at bank 2,779,698 1,155,841
2,781,955 1,155,848
5. Share Capital
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
Issued and fully paid:

Ordinary shares of RM 1.00 each as at Januray 01, 2012 1,000,000 500,000
Issued during the year - 500,000
As at 31 December 2012 1,000,000 1,000,000
6. Amount due to Holding Company

This amount is interest free, unsecured and has no fixed term of repayment.
7. Revenue
Revenue consists of services charges 943,759 583,875

943,759 583,875

2012 2011
RM RM
8 Profit from Operation
The folling items have been charged/credited in arriving at profit from operations:
After charging:
Auditor’s Remuration 4,000 4,000

Directors’ Fees 193,476 116,726
Rental 72,000 55,200
Depreciation on property, plant and equipment 29,282 24,380
After crediting:
Other Income 7,860 10,190
Fixed Deposit Interest 27,390 49,752
9 Staff Costs
Salaries and Allowances 344,441 242,608

EPF and SOCSO 2,288 780
346,729 243,388
10 Taxation
Balance brought forward (70,701) (46,181)

Tax expenses for the year 10,037 7,304
(60,664) (38,877)
Tax Paid (17,600) (31,824)
Balance carried forward (78,264) (70,701)
These amounts are subject to agreement by the Inland Revenue Board.

Domestic income tax is calculated at the Malaysia statutory tax rate of 20% of the estimated assessable profit for the
year.
A reconciliation of income tax expenses applicable to profit before taxation at the statutory income tax rate to income tax
expenses at the effective income tax rate of the Company is as follows:
Profit for the year 22,128 11,644
Tax at Malaysian statutory tax rate of 20% 4,426 2,329

Expenses not deductible for tax purpose 9,036 7,865
Utilisation of capital allowance (3,424) (2,889)
Tax expenses for the year 10,038 7,305
11 Director Fee
Chief Executive Officer 181,476 104,726

Director fee for attending meeting 12,000 12,000
193,476 116,726
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.
d) Interest rate risk

Interest rate risk is the risk that the fair value of 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 pimarily from fixed deposits placed with the financial institutions which are fixed and does not
fluctuate with changes in market interest rates.
e) Liquidity and Cash Flow Risk

The Company actively manages its operating cash flows and availability of funding so as to ensure that all
refinancing, repayment and funding needs are met. As part of its overall prudent liquidity management, the
Company maintains sufficient levels of cash to meet its working capital requirements.
13. HOLDING COMPANY

Agrani Bank Limited, company incorporated in Bangladesh, is the Holding Company holding 100% of the paid
up share capital of the company.

For Management Purpose Only

Detailed Income Statement
2012 2011
RM RM
Revenue 943,759 583,875
Add: Other Income 35,250 59,942

Other income 7,860 10,190
Fixed deposit interest 27,390 49,752
979,009 643,817
Less: Operational Expenditure 956,881 632,173

Administrative Expenses Appendix I 868,855 566,593
Finance Expenses Appendix I 4,949 4,211
Distribution Expenses Appendix I 20,235 10,506
Other operating Expenses Appendix I 62,842 50,863
Profit before Taxation 22,128 11,644
308
For Management Purpose Only
Appendix I

Detailed Income Statement
December 31, 2012 December 31, 2011

RM RM
Administrative Expenses
Advertisement 5,200 4,142
Auditor’s remuneration 4,000 4,000
Business development expenses 41,668 39,078
Donation 550 600
Directors’ fees 193,476 116,726
Electricity and water 39,846 24,313
EPF and SOCSO 2,288 780
Expenses for board meeting 5,649 1,071
Licences fee - 280
Magazine and periodicals 533 508
Medical expenses and staff welfare 15,971 13,485
Postage and courier 1,738 1,256
Printing and stationery 7,106 3,674
Professional fee 6,947 5,852
Rental 72,000 55,200
Salaries and allowance 344,441 242,608
Secretarial fee - 4,509
Security charges 96,606 29,222
Telephone and fax 10,173 8,345
Visa 15,862 5,120
868,855 566,593
Distributive Expenses
Travelling and Transport 20,235 10,506
20,235 10,506
Finance Expenses
Remittance Charges 4,949 4,211
4,949 4,211
Other Operating Expenses

Depreciation of property, plant and equipment 29,282 24,380
Upkeep of premises 8,043 7,325
Upkeep of computer 17,059 -
Upkeep of maintenance 8,458 19,158
62,842 50,863
Total Expenses 956,881 632,173

Circle, Zone, Branch
Corporate Branch
Authorised Dealer Branch
Zone-wise Branch
Name and Address of
Circle
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
10. Mymenshingh Circle

Choto Bazar, Mymenshingh
11. Faridpur
Chowk Bazar, Faridpur

Name of Zones with
Number of Branches
No. of Sl No. Name of Zone No. of

Sl No. Name of Zone Branch
Branch
1 Bagerhat 13 32 Joypurhat 9
2 Barisal 17 33 Khulna North 13
3 Bhola 9 34 Khulna South 14
4 Bogra North 15 35 Kishoregonj 12
5 Bogra South 15 36 Kurigram 10
6 Borguna 7 37 Kushtia 21
7 Brahmanbaria 15 38 Laxmipur 13
8 Chandpur 20 39 Madaripur 10
9 Chapai Nawabgonj 13 40 Manikgonj 11
10 Chittagong East & Hill 12 41 Moulavibazar 18
11 Chittagong Mohanagar-1 13 42 Munshigonj 14
12 Chittagong Mohanagar-2 14 43 Mymensingh 17
13 Chittagong North 16 44 Narail 10
14 Chittagong South 15 45 Narayangonj 11
15 Chuadanga 14 46 Narsingdi 10
16 Comilla North 15 47 Natore 12
17 Comilla South 15 48 Netrokona 11
18 Dhaka Central 15 49 Noagaon 12
19 Dhaka East 14 50 Noakhali 13
20 Dhaka North 14 51 Pabna 24
21 Dhaka South 15 52 Patuakhali 12
22 Dhaka West 14 53 Pirojpur 7
23 Dinajpur 16 54 Rajshahi 16
24 Faridpur 17 55 Rangpur 16
25 Feni 13 56 Satkhira 10
26 Gaibandha 11 57 Sherpur 6
27 Gazipur 16 58 Sirajgonj 20
28 Gopalgonj 9 59 Sylhet East 19
29 Jamalpur 14 60 Sylhet West 20
30 Jessore 18 61 Tangail 23
31 Jhenaidah 14 62 Thakurgaon 10
Sub Total 862
Corporate Branches 27
Total 889
312
List of
Corporate Branches
Sl No. Name & Address Sl No. Name & Address

1 Principal Branch 2 Amin Court Corporate Branch
9/D Dilkusha C/A 62/63 Motijheel C/A, Dhaka 1000
Motijheel, Dhaka 1000
3 Ramna Corporate Branch 4 Foreign Exchange Corporate Branch
18 Bangabandhu Avenue 1/B DIT Avenue, Motjheel
Dhaka 1000 Dhaka 1000
5 Bangabandhu Avenue Corporate Branch 6 Purana Paltan Corporate Branch
32 Bangabandhu Avenue 56 Purana Paltan, Dhaka 1000
Dhaka 1000
7 Laldighi East Corporate Branch 8 Commercial Area Corporate Branch
1012-1013 Laldighi East 28 Sayada Court, Agrabad C/A
Chittagong 4100 Chittagong 4100
9 Agrabad Jahan Building Corporate Branch 10 Sir Iqbal Road Corporate Branch
Jahan Building, 24 Agrabad C/A 25 Sir Iqbal Road, Khulna 9100
Chittagong 4100
11 Asadgonj Corporate Branch 12 EPZ Corporate Branch
Haji Amir Ali Chow. Road CEPZ Area, Chittagong 4100
Asadganj, Chittagong 4000
13 New Market Corporate Branch 14 Strand Road Corporate Branch
886/904 H. S. Suhrawardy Road 15 Strand Road, Chittagong 4100
Chittagong 4000
15 Banani Corporate Branch 16 B. WAPDA Corporate Branch
Banani, Dhaka Ellal Chamber
Motijheel C/A, Dhaka 1000
17 Dhaka Sheraton Hotel Corporate Branch 18 Green Road Corporate Branch
Sheraton Hotel, Dhaka 1000 28 Green Road
Dhaka 1205
19 Moulavibazar Corporate Branch 20 Nawabpur Road Corporate Branch
144 Mitford Road, Dhaka 243-244 Nawabpur Road, Dhaka
21 Sadarghat Branch 22 Tejgaon Industrial Area Corporate Branch
3/7 Johnson Road, Sadarghat 315/A, Tejgaon I/A, Kawran Bazar
Dhaka Dhaka 1215
23 Clay Road Corporate Branch 24 Bangabandhu Road Corporate Branch
Clay Road, Khulna 9100 Bangabandhu Road
Narayangonj 1400
25 Shaheb Bazar Corporate Branch 26 Laldighirpar Corporate Branch
Shaheb Bazar, Boalia Laldighirpar, Sylhet 3100
Rajshahi 6100
27 WASA Corporate Branch

WASA Bhaban
98 Kazi Nazrul Islam Avenue, Kawran
Bazar Dhaka 1215

List of
Authorised Dealer Branches
Sl No. Name & Address Phone Cable Address
1 Chawk Bazar Branch (0431) 64082 AGRANI BANK LTD.,

21 Chawk Bazar Fx 62426 BARISAL
Barisal 8200 BANGLADESH
2 Thana Road Branch (051) 66564 AGRANI BANK LTD.
Thana Road, Bogra 5800 Fx 65012 BOGRA
BANGLADESH
3 Agrabad Jahan Building Corporate Branch (031) 716370 COMAGRANI
24 Agrabad C/A Fx 710152 CHITTAGONG
Chittagong 4100 TLX NO. 633020
ABJBC-BJ
4 Asadgonj Corporate Branch (031) 637728 ASADAGRANI
Haji Amir Ali Chowdhury Road 631083 CHITTAGONG
Asadgonj, Chittagong 4000 Fx 618507 TLX NO. 633161
AGASD-BJ
5 EPZ Corporate Branch (031) 800421 AGRANI BANK LTD.,
CEPZ Area, Chittagong 4100 Fx 740926 BAY SHOPING, CTG
TLX NO. 66235
ABCG-Bj
6 Commercial Area Corporate Branch (031) 716225 AGRAAGRANI
28 Sayada Court 2521220 CHITTAGONG
Agrabad C/A, Chittagong 4100 Fx 716225 TLX NO. 633079
BCCA-BJ
AGBKBDDH 015
7 Cox's Bazar Branch Ph/Fx (0341) 63259 AGRANI BANK LTD.,
Cox's Bazar 4800 COX'S BAZAR
BANGLADESH
8 Laldighi East Corporate Branch (031) 611373 AGRANI BANK LTD.,

1012-1013 Laldighi East 610133, 611373 CHITTAGONG
Chittagong 4100 630803-4 BANGLADESH
Fx 610133 TLX NO. 66215
ABCG-BJ
SWIFT: AGBKBDDH 017
9 New Market Corporate Branch (031) 611525 NEWAGRANI,

886/904 H. S. Suhrawardy Road Fx 635561 CHITTAGONG
Chittagong 400 Tel: 611525
Fx 88-031-745926
10 Strand Road Corporate Branch (031) 631724 SALTAGRANI,

15 Strand Road 716113 CHITTAGONG
Chittagong 4100
11 Rajgonj Branch (081) 76022 AGRANI BANK LTD.,
Rajgonj, Comilla 3500 COMILLA
BANGLADESH
314
12 Amin Court Corporate Branch (02) 9550967 FX 9572045

62/63 Motijheel C/A 955141 DILAGRANI, DHAKA
Dhaka TLX NO. 632400
ABACD-BJ
SWIFT: AGBKBDDH 004
13 Banani Corporate Branch 8816279 BANANI-AGRANI
Banani, Dhaka DHAKA
14 Bangabandhu Avenue Corporate Branch (02) 9553242 AVENUE AGRANI,
32 Bangabandhu Avenue 9555651 DHAKA
Dhaka 9555642 TLX NO. 642160
ABRD-BJ
15 B. WAPDA Corporate Branch (02) 9554157 WAPDAAGRANI,
Ellal Chamber 9554283 DHAKA
Motijheel C/A, Dhaka 1000 TLX NO. 632549
ABD-BJ
16 Dhaka Sheraton Hotel Corporate Branch 8330130, 8330131 Tel/Fax 9348753
Sheraton Hotel, Dhaka INTERAGRANI,DHAKA
17 Foreign Exchange Corporate Branch (02) 7176449 FEAGRANI, DHAKA
1/B DIT Avenue, Motjheel 7176449, 9552319 TEL NO. 642501
Dhaka 1000 9553602 ABFED-BJ
FAX 9567185 SWIFT: AGBKBDDH 006
18 Green Road Corporate Branch (02) 8613679 GREENAGRANI,

28 Green Road, Dhaka 1205 8631372 DHAKA
TEL NO. 842757
ABD-BJ
19 Moulavibazar Corporate Branch (02) 7314426 JOYAGRANI DHAKA
144 Mitford Road, Dhaka 7313424 TEL NO. 671260
ABM-BJ
SWIFT: AGBKBDDH 003
20 Nawabpur Road Corporate Branch (02) 9562679 NAWAGRANI, DHAKA

243-244 Nawabpur Road, Dhaka TEL NO. 632550
ABD-BJ
21 Principal Branch (02) 956077 JHEELAGRANI,

9/D Dilkusha C/A 9561556 DHAKA
Motijheel, Dhaka 1000 9554497 TEL NO. 642757
9553064 ABD-BJ
632549 ABD-BJ
SWIFT: AGBKBDDH 001
22 Purana Paltan Corporate Branch (02) 9560011 PURANAGRANI,
56 Purana Paltan, Dhaka 1000 9561049 DHAKA
9564769 TLX 632550 ABD-BJ
23 Ramna Corporate Branch (02) 7160070 Fax 9554040
18 Bangabandhu Avenue 9568744 GULAGRANI, DHAKA
Dhaka 1000 9563086-88 TLX NO. 642160 ABRD-BJ
SWIFT: AGBKBDDH 005

24 Sadarghat Corporate Branch (02) 7118594 SADARAGRANI, DHAKA
3/7 Johnson Road, Sadarghat, Dhaka 7123349 TLX NO. 671260 ABD-BJ
25 Tejgaon Industrial Area Corporate Branch (02) 9887426 TEJAGRANI, DHAKA
315/A, Tejgaon I/A, Dhaka 1215 9887858 TLX NO. 642757 ABD-BJ
26 Maldahpatty Branch (0531) 63306 AGRANI BANK LTD.
Dinajpur 5200 63102 Dinajpur
TLX NO. 671524, ABDJP-BJ
27 Hakimpur Branch 05329-75351 HAKIM AGRANI
Bangla Hili, Dinajpur Hakimpur Branch
28 Faridpur Branch (0631) 61972 AGRANI BANK LTD.,
Faridpur 7800 63134, 63137, Fax 62508 FARIDPUR, BANGLADESH
29 Gazipur Branch (02) 9252202 AGRANI BANK LTD.,
Gazipur 1700 Fax 9252013 GAZIPUR, BANGLADESH
30 Jessore Branch (0421) 66516 COMAGRANI,
Jess Tower, Jessore 7400 66175 JESSORE
TLX NO. 633421
ABJES-BJ
31 Clay Road Corporate Branch (041) 724024 AGRANI BANK LTD.,
Clay Road 723831 KHULNA
Khulna 9100 Ph./ Fax 720552 TLX NO. 62714 ABK-BJ
SWIFT: AGBKBDDH 023
32 Sir Iqbal Road Corporate Branch (041) 722949 COMAGRANI, KHULNA
25 Sir Iqbal Road, Khulna 9100 723713, 724947 TEL NO. 627214 ABK-BJ
33 Bara Bazar Branch (071) 62336 AGRANI BANK LTD.,
14 N. S. Road Ph./ Fax 61866 KUSHTIA
Kushtia 7000 BANGLADESH
34 Bangabandhu Road Corporate Branch (02) 7630090 COMAGRANI
Bangabandhu Road 7630165 NARAYANGONJ
Narayangonj 1400 Ph./ Fax 7630173 TEL NO. 671525, ABNJ-BJ
35 Court Road Branch (02) 7631808 COURTAGRANI
Court Road Ph./ Fax 7631930 NARAYANGONJ
Narayangonj 1400 TEL NO. 671525, ABNJ-BJ
36 Chowmuhani Branch (0321) 51867 AGRANIBANK,
Chowmuhani, Begumgonj Fax 52057 CHOWMUHANI
Noakhali 3821 NOAKHALI, BANGLADESH
37 Shaheb Bazar Corporate Branch (0721) 776063 AGRANI BANK,
Shaheb Bazar, Boalia 772393, 774208 RAJSHAHI, BANGLADESH
Rajshahi 6100 Fax 770642 SWIFT: AGBKBDDH 027
38 Rangpur Main Branch (0521) 65437 AGRANI BANK LTD.
Central Road Fax 62393 RANGPUR
Rangpur TEL NO. 671521, AZRNP-BJ
39 Laldighirpar Corporate Branch (0821) 716177 AGRANI BANK LTD.,

Laldighirpar 717038, 725619 SYLHET, BANGLADESH
Sylhet 3100 Fax 710303 SWIFT: AGBKBDDH 021
40 WASA Corporate Branch (02) 9112267 AGRANI BANK LTD.,

98 Kazi Nazrul Islam Avenue, Kawran WASA BRANCH,
Bazar, Dhaka 1215 DHAKA.
316
Zone Wise
List of Branches
1. Bagerhat Zone 3. Chelopara 9. Kashba 2. Bandarban

1. Bagerhat 4. Dupchachiya 10. Lalpur Bazar 3. Banorupa
2. Badhal Bazar 5. Ghoradhaphat 11. Nabinagar 4. Chandraghona
3. Chitolmari 6. Mohasthangar 12. Salimgonj 5. Gahira F.K.J.
4. Chulkati Bazar 7. Nishindara 13. Shahpur Madrasha
5. Deypara Bazar 8. Poradaha Hat 14. Shibpur 6. Ishakhali
6. Goalmath 9. Raza Bazar 15. T.A.Road 7. Kaptai
7. Jatrapur 10. Shibbati 8. Khagrachari
8. Main Road 11. Sonatala 8. Chandpur Zone 9. Ramgar
9. Mongla Port 12. Talora 1. Algi Bazar 10. Rangamati
10. Morelgonj 13. Thana Road 2. Babur Hat 11. Rauzan
11. Munigonj 14. Tinmatha Railgate 3. Balithuba 12. Shantiniketon
12. Polerhat Bazar 15. Zianagar 4. Beltali Bazar
13. Sannyashi Bazar 5. Chandra Bazar 11. Ctg. Mohanagar-1
5. Bogra South Zone 6. Changarchar Zone
2. Barisal Zone 1. Bagbari Bazar 1. Amanat Khan
1. Amua Bazar 2. Bhatra 7. Farakkabad Sarak
2. Banoripara 3. Bogra Cantonment 8. Hajigonj 2. Bahaddarhat
3. Batajore 4. Dhunot 9. Kachuya 3. Chaktai
4. Bottola 5. Khandar 10. Khajuria Bazar 4. Chatteswari Road
5. Chawk Bazar 6. Madla 11. Matlab Bazar 5. Firingi Bazar
6. Gournadi 7. Majhira 12. Meher 6. Jublee Road
7. Jhalokathi 8. Mirzapur 13. Munshirhat 7. Kapashgola
8. Kashipur Bazar 9. Nondigram 14. Nandalalpur Bazar 8. Khatungonj
9. Lebubuniyahat 10. Noymile Hat 15. Narayanpur 9. Lalkhan Bazar
10. Matherkathi 11. Sonka 16. Natun Bazar 10. Press Club
17. Ramchandrapur 11. Riazuddin Bazar
11. Nalcity 12. Soptopodi Market
Bazar 12. Sadarghat
12. Puran Bazar 13. Sherpur
18. Rupsha Bazar 13. Ishanagar
13. Rupatoli 14. Sultangonj
19. Sreeramdee
14. Sadar Road 15. Taroni Hat
20. Station Road 12. Ctg. Mohanagar-2
15. Shekher Hat
Zone
16. Torki Bandar 6. Borguna Zone
9. Chapai 1. Artilary Center
17. Ulania 1. Amtali
Nawabgonj Zone 2. Askardighi
2. Barguna
1. Amnura 3. Chittagong University
3. Bhola Zone 3. Betagi
2. Baroghoria 4. Ctg. Air Base
1. Bhola 4. Gazipur Hat
3. Binodpur 5. Fateyabad
2. Borhanuddin 5. Kakchira 4. Chapai Nawabgonj 6. Halishahar
3. Char 6. Pathorghata 5. Chowdala 7. Industrial Area
Shashibhushan 7. Taltali Bazar 6. Gobratola 8. Jalalabad
4. Charfession Bazar 7. Khamar 9. Khulshi
5. Doulatkhan 7. Brahmanbaria 8. Mobarakpur 10. Medical College
6. Kalinath Rayer Zone 9. Manakasha 11. Pahartali
Bazar 1. Akhaura 10. Rajarampur 12. Port
7. Khairhat 2. Ashugonj 11. Rahanpur 13. Sk.Mujib Sarak
8. Lalmohan 3. Bancharampur 12. Sadarghat 14. Steel Mills
9. WAPDA 4. Bangura Bazar 13. Shibgonj
5. Bitghar 13. Ctg. North Zone
4. Bogra North Zone 6. Brahmanbaria 10. Ctg. East & H/T 1. Amirhat
1. Badurtola 7. Chandura Bazar Zone 2. Azadi Bazar
2. Chamrul 8. Jagat Bazar 1. Aziznagar 3. Barayer Hat

4. Borodarogar Hat 6. Chandina 7. Jatrabari 13. Shyamoli
5. Cadet College 7. Daudkandi 8. Kadamtali 14. Shimulia
6. Colonnel Hat 8. Debiddar 9. Kamlapur
7. Durgapur 9. Homna 10. Matuail 23. Dinajpur Zone
8. Fouzdarhat 10. Madhabpur 11. Narinda 1. Amtali
9. Hathazari 11. Nimshar 12. Pyaridas Road 2. Bhushir Bandar
10. Madambibir Hat 12. Rajgonj 13. Rayshaheb Bazar 3. Birampur
11. Modunaghat 13. Rup Babu Bazar 14. S. S. College 4. Hakimpur
12. Nazir Hat 14. Shankuchail 5. Kamalpur Hat
13. Quaish Burischar 15. Zahapur 20. Dhaka North Zone 6. Madilahat
14. Samitirhat 1. B.A.F. 7. Maldahpatty
15. Sitakundu 17. Comilla South 2. Badda 8. Munshipara
16. Swandeep Zone 3. Farmgate 9. Nobabgonj
1. Amratali Bazar 4. Gulshan 10. Parbatipur
14. Ctg. South Zone 2. Bakshagonj 5. ICDDR’B
11. Pulhat
1. Amirabad 3. Hasanpur 6. Kurmitola
12. Fulbari
2. Anwara 4. Housing Estate 7. Malibagh
13. Puratan Bazar
3. Boalkhali 5. Jhalam Bazar 8. Mirpur
14. Setabgonj
4. Cox’s Bazar 6. Kashinagar 9. Mohakhali
5. Dewanhat 10. Pallabi 15. Station Road
7. Khila Bazar 16. Tajpurhat
6. Gunagori 8. Laksham 11. Rampura T.V.
7. Keranirhat 9. Manoharpur 12. Senpara
8. Khutakhali 13. Shewrapara 24. Faridpur Zone
10. Munshir Hat 1. Badarpur
9. Marichya 11. Nangal Coat 14. Uttara Model Town
10. Minnat Ali Hat 2. Ahladipur
12. Nasratpur 3. Bhanga
11. Mirzakhil 13. Nather Petua 21. Dhaka South Zone
12. Patia 1. Antabarrah 4. Boalmari
14. Paduar Bazar 5. Bus Stand
13. Sarwatoli 2. Babu Bazar
15. Tomsom Bridge
14. Sattarhat 3. Becharam Dewri 6. Charbhadrashan
15. Teknaf 4. Begum Bazar 7. Faridpur
18. Dhaka Central
5. Chowdhury Bazar 8. Gharua
Zone
15. Chuadanga Zone 6. Chowk Bazar 9. Kalukhali
1. Agamashi Lane
1. Alamdanga 7. Imamgonj 10. Maligram
2. Bangla Academy
2. Andulbaria 8. Islampur 11. Nagarkanda
3. Central Law
3. Asmankhali 9. Jagannath 12. Naliajamalpur
College
4. Bamon Para University 13. Pangsha
5. Bamundi Bazar 4. Dhaka University
10. Joypara 14. Rajbari
6. Chuadanga 5. Elephant Road 11. Narisha Bazar 15. Sadarpur
7. Darshana 6. Jatiya Jadughar 12. Nawabgonj (Kolakopa)
7. Jatiya Press Club 16. Sariatullah Bazar
8. Hardi 13. Posta 17. Zila Parisad
9. Jibon Nagar 8. Mouchak 14. Mitfort Hospital
10. Kedargonj 9. New Eskaton 15. Zinzira
10. New Market 25. Feni Zone
11. Khashkorara 1. Badamtoli
Bazar 11. North South Road 22. Dhaka West Zone
12. Panthapath 2. Bairagirhat
12. Meherpur 1. Bank Town 3. Bashurhat
13. Mujib Nagar 13. Rajuk Bhaban 2. Dhamrai
14. Shantinagar 4. Chhagalnaiya
14. Radhakantapur 3. Dhanmondi
15. Sonargaon Road 5. Chowmuhani
Bazar 4. Gabtoli
6. Dagonbhuiyan
5. Jahangir Nagar University
19. Dhaka East Zone 7. Deltagate
16. Comilla North 6. Kamrangirchar
1. Farashgonj 8. Feni
Zone 7. Mohammadpur
1. BSCIC 2. Thatari Bazar 8. Nawabgonj Road 9. Kamlapatty
2. Balutupa 3. Basaboo 9. Pathalia 10. Kashipur Bazar
3. Bataichari Bazar 4. Dholairpar 11. Parshuram
10. Rayer Bazar
4. Batakandi 5. Faridabad 12. Senbag
11. Satmosjid Road
6. Hatkhola 13. Sonagazi
5. Burichong 12. Savar
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

5. Madaripur 13. Simpara Bazar 5. Musapur Bazar 4. Chatkhil
6. Mulfatgonj 14. Sreenagar 6. Narsingdi 5. Datterhat
7. Naria 7. Palash Bazar 6. Gopalpur Bazar
8. New Market 43. Mymensingh Zone 8. Radhagonj 7. Hatia
9. Shariatpur 1. Atharobari 9. Shibpur 8. Joyag Bazar
10. Tekerhat 2. Bhaitkandi 10. Station Road 9. Maijdee Court
3. Bhaluka 10. Nadana Bazar
40. Manikgonj Zone 4. Bidyagonj Bazar 47. Natore Zone 11. Noakhali STU
1. Arichaghat 5. C.K.Ghosh Road 1. Bagatipara 12. Sonaimuri
2. Basta Bus Stand 6. Chhoto Bazar 2. Gopalpur 13. Zilla Board
3. Boyra 7. Dhara Bazar 3. Halsha
4. Charigram 8. Gaffargaon 4. Laxmikole 51. Pabna Zone
5. Jhitka Bazar 9. Mymensingh Girls’ 5. Lokmanpur Bazar 1. Abdul Hamid Road
6. Krishnapur Cadet College 6. Natore 2. Ataikula
7. Manikgonj 10. Kaligonj Bazar 7. Natore Sugar Mills 3. Atghoria
8. Manikgonj Bus 11. Kashigonj 8. Nazirpur 4. Bera
Stand 12. Mechua Bazar 9. North Bengal 5. Boral Bridge
9. Maniknagar 13. Medical Collage Sugar Mills 6. Chatmohor
10. Saturia 14. Muktagacha 10. Quadirabad 7. College Gate
11. Singair 15. Mymensingh Cantonment 8. Court Road
16. Phulpur 11. Rajapur Hat 9. Dashuria
41. Moulavibazar Zone 17. Trisal 12. Singra 10. Dublia Bazar
1. Bhanugach Bazar 11. H.M.M.Road
2. Bhukshimoil 44. Narail Zone 48. Netrokona Zone 12. Ishwardi
3. Giasnagar 1. Auria 1. Barhatta 13. Kashinathpur
4. Gopaya 2. Bagharpara 2. Birishiri Bazar
5. Hobigonj 3. Bhangura Bazar 3. Durgapur 14. Mirzapur Hat
15. Muladuly
6. Kailashgonj 4. Gazirhat 4. Fakirer Bazar
16. Nagarbari Ghat
7. Katarkona 5. Jogania 5. Jhanjail
17. Nazirgonj
8. Karmadha 6. Kolabaria 6. Kendua
18. Pushpaparahat
9. Kulaura 7. Kalia 7. Mohangonj
19. Rail Bazar
10. Mostafapur 8. Lohagarah 8. Netrokona
20. Ruppur
11. Moulvi Bazar 9. Narail 9. Purbadhala
21. Shibrampur
12. Munshi Bazar 10. Ratdanga 10. Rupgonj Bazar
22. Shyamgonj Hat
13. Nabigonj 11. Teosree Bazar
23. Sujanagar
14. Fultala Bazar 45. Narayangonj Zone
24. Trimohoni
15. Rabir Bazar 1. Araihajar 49. Naogaon Zone
16. Shayestagonj 2. B.K.Road 1. Ahsangonj 52. Patuakhali Zone
17. Sindurkhan Bazar 3. Court Road 2. Aihai 1. Alipur Bandar
18. Sreemongal 4. Demra 3. Boalia 2. Bauphal
5. Kalir Bazar 4. Bus Stand 3. Dashmina
42. Munshigonj Zone 6. Kanchan 5. Kashab 4. Golachipa
1. Baligaon Bazar 7. Mirjumla Road 6. Mainamhat 5. Kanakdia
2. Dighirpar Bazar 8. Shastapur 7. Matajeehat 6. Khepupara
3. Hasail Bazar 9. Siddhirgonj Power 8. Naogaon 7. Kuakata
4. Hashara Bazar Station 9. Nithpur 8. Mirzagonj
5. Hossaindi Bazar 10. Sonargaon 10. Patnitola 9. Nutan Bazar
6. Kalma Bazar 11. Tanbazar 11. Porsha 10. New Market
7. Kolapara Bazar 12. Sapahar 11. PSTU
8. Mirkadim 46. Narsingdi Zone 12. Puran Bazar
9. Muktarpur 1. Amirgonj 50. Noakhali Zone
10. Munshigonj 2. Baburhat 1. Amishapara 53. Pirojpur Zone
11. Munshirhat 3. Chalakchar Bazar 2. Badalkot Bazar 1. Bhandaria
12. Ramgopalpur 4. Manohordi 3. Bazra Bazar 2. Kaukhali
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

Glossary of
Acronyms
ABL Agrani Bank Limited CRG Credit Risk Grading

ABS Agrani Bank Sanchaya Scheme CRM Credit Risk Management
AD Authorized Dealer CRMC Credit Risk Management Committee
ADBS Agrani Double Benefit Scheme CRMD Credit Risk Management Department
ADP Annual Development Program CRMG Core Risk Management Guidelines
AEIL Agrani Equity & Investment Limited CRISL Credit Rating Information and Services Limited
ALCOM Asset-Liability Management Committee CRO Chief Risk Officer
ALM Asset-Liability Management CRR Cash Reserve Requirement
AML Anti-Money Laundering CSR Corporate Social Responsibility
APS Agrani Bank Pension Shanchaya Scheme CTR Cash Transaction Report
AMLC Anti-Money Laundering Committee DCFCL Departmental Control Function Check List
ATM Automated Teller Machine DP Depository Participants
BACH Bangladesh Automated Clearing House DRS Disaster Recovery Site
BACPS Bangladesh Automated Cheque Processing System DTL Demand and Time Liabilities
BAMLCO Branch Anti-Money Laundering Compliance Officer DSE Dhaka Stock Exchange
BAS Bangladesh Accounting Standards EAD Exposure at Default
BB Bangladesh Bank EAS Early Alert System
BBS Bangladesh Bureau of Statistics ECAI External Credit Assessment Institution
BCBS Basel Committee on Banking Supervision EDF Export Development Fund
BDT Bangladesh Taka EEF Equity Entrepreneurship Fund
BEFTN Bangladesh Electronic Fund Transfer Network EFT Electronic Fund Transfer
BFRS Bangladesh Financial Reporting Standards e-GP Electronic Government Procurement
BIA Basic Indicator Approach EMV Euro Pay, Master Card and Visa
BIS Bank for International Settlements EPS Earnings Per Share
B/L Bad/Loss ERM Environmental Risk Management
BMRE Balancing, Modernization, Rehabilitation & Expansion ERQ Exporter’s Retention Quota
BOD Board of Directors ETPs Effluent Treatment Plants
BRPD Banking Regulation and Policy Department FBP Foreign Bills Purchased
BSA Bangladesh Standards on Auditing FDI Foreign Direct Investment
BSP Bangladesh Sanchaya Patra FY Financial Year (July-June)
CAMLCO Chief Anti-Money Laundering Compliance Officer GBC Global Business Challenge
CAR Capital Adequacy Ratio GDP Gross Domestic Product
CBS Core Banking Software GFSR Global Financial Stability Report
CCR Credit Concentration Risk GOB Government of Bangladesh
CDBL Central Depository Bangladesh Limited GPF General Provident Fund
CDR Credit Deposit Ratio GR General Reserve
CFP Contingency Funding Plans GSE Government Sponsored Enterprise
CFT Combating Finance of Terrorism HFT Held for Trading
CIB Credit Information Bureau HTM Held to Maturity
CMU Capital Management Unit IAS International Accounting Standards
CP1 Credit Policy IBP Inland Bills Purchased
CP2 Core Principles ICAAP Internal Capital Adequacy Assessment Process
CPF Contributory Provident Fund ICAB Institute of Chartered Accountants of Bangladesh
CPI Consumer Price Index ICC Internal Control & Compliance
CPTU Central Procurement Technical Unit ICMAB Institute of Cost & Management Accountants of Bangladesh
CRAB Credit Rating Agency of Bangladesh Limited ICT Information & Communication Technology
CRECOM Credit Committee ICT Internal Control Team
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

Annual Report 2012 of Agrani Bank Limited PDF

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Annual Report 2012 of Agrani Bank Limited PDF

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Annual Report

9/D Dilkusha Commercial Area Dhaka 1000

Annual Report 2012 03

BACH, BEFTN, SWIFT, e-GP 112

ATM, Mobile Banking 113

Agent Banking 114

Distribution of SEQAEP Stipend 115

Online CIB Reporting 116

Audit & Inspection during 2012 116

Business Risk Management 118

Credit Rating 120

Implementation of Basel II 121

Corporate Social Responsibility 121

HR Management and Development 122

Planning, Recruitment, Promotion & Departure 122

Training and Development 124

Contribution to National Exchequer 127

Outlook for 2013 128

Preparation of Financial Statements 128

Dividend Declaration 129

Appointment of Auditors 129

Corporate Governance 131

Meetings of the Old Board during 2012 132

Meetings of the New Board during 2012 132

Independent Directors 133

Audit Committee of the Old Board 133

Role of Audit & Inspection Division 134

Role and Function of Internal Control & Compliance Division 134

Annual Report 2012 05

Directors’ Statement of Responsibilities 138

Report of the Board Audit Committee 139

Auditors’ Report & Audited Financial Statements 141

Auditors’ Report 142

Consolidated Balance Sheet 144

Consolidated Off Balance Sheet Items 145

Consolidated Profit and Loss Account 146

Consolidated Cash Flow Statement 147

Consolidated Statement of Changes in Equity 148

Consolidated Liquidity Statement 149

Notes to the Financial Statements 156

Nostro Accounts Outside Bangladesh 215

Details of Advance Tax and Provision of Taxation 216

Fixed Assets Including Land, Buildings, Furniture and Fixtures 217

Highlights on the Overall Activities of the Bank 222

Islamic Banking Unit of ABL 223

Auditors’ Report & Financial Statements of 4 Subsidiary Companies 227

Agrani Equity & Investment Limited 227

Agrani SME Financing Company Limited 242

Agrani Exchange House Private Limited, Singapore 267

Agrani Remittance House Sdn. Bhd., Malaysia 291

Circle Offices 312

Corporate Branch Offices 314

AD Branch Offices 315

Zone-wise List of Branches 318

Glossary of Acronyms 323

Net Asset Value Per Share 22

Net Loans and Advances 22

Cost to Income Ratio 23

Non Interest Income 23

Non Performing Assets 23

Major Achievements in 2012 24

Presentation of Key Financial Information 37

Deposit Mix of 2012 37