a report onab bank limited

7/31/2019 A Report OnAB Bank Limited

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Internship Report On ;

A study on overall Activities & performance of AB Bank Limited

ABBank

Under The Supervision Of :

DR.M A Hakim

Internship Supervisor & lecturer in Finance

Bangladesh University of Business & Technology(BUBT)

Dhaka Campus .

Prepared By

Md.Ibrahim Khalil Ullah

IDNo-021

Batch No- 11th

Major- Finance & Banking

Department - M.B.A .


Date of Submission

Bangladesh University of Business &

Technology(BUBT)


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Acceptance Letter-

It is my pleasure to accept the internship report entitled "A Study on overall

Activities & Performance of ABBL " prepared by

Name - Md.Ibrahim Khalil Ullah, IDNo-021

Batch No- 11th

Major in Finance & Banking, Department of Business Administration,

Bangladesh University of Business & Technology (BUBT)

Dhaka Campus. I do hereby certify that this report is solely prepared by her by

using the relevant documents related to the assigned topic.

Md.Ibrahim Khalil UllahIDNo-021

Batch No- 11th





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STUDENT DECLARARION

I here by declared that the internship report entitled General Banking Activities

of AB Bank Limited. Submitted in partial fulfillment of the requirement for the

degree of Masters of Business Administration (MBA) from International

Islamic University Chittagong Dhaka Campus.


IDNo-021

Batch No- 11th





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CERTIFICATE

This is certify that the Internship Report entitled General Banking Activities of

AB Bank Limited. Submitted in partial fulfillment of the requirement for the

degree of Masters of Business Administration (MBA) from Bangladesh

University of Business & Technology(BUBT)

BY


IDNo-021

Batch No- 11th


Department - M.B.A .Bangladesh University of Business & Technology(BUBT)

Attested Certified

.. .

Internship Chairman of the Committee Supervisor


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LETTER OF SUBMISSION

Date- 14, October 2009

ToLecturer

Department of Business Administration (Finance)Stamford University Bangladesh

Sub: Submission of Internship Report on Overall Performance Of Ab Bank Ltd.

Dear Sir,

It is my great pleasure to submit you my internship report on Overall Performance Of Ab Bank Ltd.. I have

tried my best to complete this report properly following the guidelines provided by you and concernedorganization.

I have confidence that the internship program has increased both of my practical experience and theoretical

knowledge to a great extent. I will be obliged to answer any query that may arise during the evaluation of this

report. So, I am fervently requesting and hope that you would be kind enough to accept my report and obligethereby.

Sincerely Yours,

______________________Md.Ibrahim Khalil Ullah

BBA (Major in Finance)27th (P) Batch

ID: 02708033

Stamford University Bangladesh.


6/92


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ACKNOWLEDGEMENT

First of all, I am expressing my sincere gratefulness to Almighty me to prepare

this report .The success of this report depends on the contribution of number of

people specially those who have shared their thoughtful guidance andsuggestions to complete this report.

I would like to give my heartiest gratitude Md.Ibrahim Khalil Ullahthe guided

and coordinator of my internship report of MBA program under BUBT for

giving me the best and valuable advice, suggestion and moral support to

complete the report in an appropriate and manner. It is my pleasure to them and

my grateful appreciation goes to ABBL authority for rendering me their

expertise, knowledge, and giving me the opportunity of having a practical

experience through this internship program.

I would like to convey my sincerest gratitude to DR.M A HakimDepartment of Finance for his kind cooperation to allow me for three (3)

months practical banking in the bank .Then I like to thanks to Mr.Chowdury

A.N.M Mosaraf AH Beg (SAVP) Manager of Mirpur Branch , A.S.M

Khairul Alam (AVP) and Sub-manager

of Mirpur Branch and all the staff of this branch for giving me the pleasure of

doing internship.

My heartfelt appreciation and thanks should reach to MD.Kamruzzaman

(S.P.O),Mozammal Hossain Khan (S.P.O), MD.Zakir Hossain (P.O)

,Mosammat Saleha Khatun (S.O) ,Atika Zakia Islam (P.O) OF Head teller. Who

operate and support me to collect various types of information and necessary

documents and help me to complete this internship report.

A silent steam of gratitude is for my most adorned parents whose blessings are

always with me in this windly world.


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ABBREVIATIONS:

ABBL - AB Bank Limited

BUBT - Bangladesh University of Business & Technology

SAVP - Senior Assistant Vice Principal

PO - Principal Officer

SO - Senior Officer

SPO - Senior Principal Officer

CD - Current Deposits

SB - Shaving Deposits

FDR- Fixed Deposits Receipt

TIN- Tax Identification Number

L/C-Letter of Credit

P/I- Pro- forma Invoice

B/L-Bill of lading

B/E - Bill of Exchange

ERC- Export Registration Certificate

CCI&E - Chief Controller of Import & Export

(BIVAC) - Bureau Veritas Bangladesh LTD

LCAF- Letter of Credit Authorization form

IMP- Import

SWOT- Strength, Weakness, Opportunity, Threats.


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Table of Contents:

Chapter One (Introduction of the Report)_________________Page No

1.0) Introduction 12

1.1) Background of the Report 121.2) Objective of the Report 13

1.3) Scope of the Report 13

1.4) Sources of Information 14

1.4.1) Primary Source 14

1.4.2) Secondary Source 14

1.5) Limitation of the Study 14

Chapter Two (Overview of the Organization)________________Page No

2.0) Overview of the Organization 16

2.1) Historical Background of AB Bank Limited 16-182.2) ABBL : At glance 18

2.3) Vision & Mission 19

2.3.1) Vision Statement 19

2.3.2) Mission Statement 19

2.4) Change of name 20

2.5) Birth of the Logo 20

2.6) Company Philosophy 20

2.7) Branch Location 21 -23

2.8) Organogram of ABBL 24

2.9) Financial Statement 25-26


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Chapter Three (Branch Information)

Page No

3.0) History of Mirpur Branch

3.1) Organizational Structure of Mirpur Branch3.2) Department of the Branch

3.3) Present position of the Branch

17

18

19

19

Chapter Four (Function of ABBL)

Page No

4.0) General Banking System4.1) Accounts Opening System

4.1.1) Current Deposits (CD)

4.1.2) Savings Deposits (SB)

4.1.3) Fixed Deposits (FOR)

4.1.4) Monthly Savings Deposits (MSDS)

4.1.5) Double Deposits Scheme (DOS)

4.1.6) Special Team Deposits (STD)

4.2) Procedure of closing Account4.3) Remittance Department

4.3.1) Local Remittance Department

4.3.2) Foreign Remittance Department

4.4)Regulation for Foreign

4.5) International Regulation of Foreign Exchange

4.6) Foreign Exchange Mechanism

4.7) Letter of Credit L/C

33

34

35

3535

36

36

36

37

37

37

38

4040-41


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42

43


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4.8) Import Department

4.9) Steps of Import Procedures

4.10) Clearing Department

4.11) Money Transfer

4.12) Types of Cheques Collection4.13) The Clearing House

4.14) Types of Clearing

4.15) Process of Inward Clearing

4.16) Process of Outward Clearing

4.17) Cheque Returns

4.18) FCD Department

4.19) Loan Department

44

45-4646

47

48-49

49-50

51

52

53-54

54-55

55-56 57-64Chapter Five

Page No

5.1) Internship Duties

5.2) Learning Points

5.3) SWOT Analysis

5.4) Recommendation

5.5) Conclusion

66-67

67-68

68-6969

70

References

71


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AB Bank

Executive Summary

Modern Banking is an outcome development driven by changing financial

activities and

lifestyle . It offers the widest range of financial services - specially credit,Savings, and

payment services and performs the widest range of financial functions of any

business

firm in the economy . By definition , bank collects deposits from of credit and

other

financial services to the clients. At one hand the bank pays interest to the

depositors and

on the other hand it earns interest at a higher rate from the borrowers to realize

profit. Sowe find that money works both as the input and output of the banking industry.

The

important feature of banking operation is to earn a good image of

trustworthiness to

deal with money of the depositors . AB Bank Ltd is of famous bank in the

growing

banking sector of Bangladesh . In AB Bank Ltd , as I have found out, the task of

satisfying the depositor group and the borrower group is the first priority and

the bank

does this in a way smarter than any others in the industry. Beside these, AB

Bank gets

success in very short time.

I have worked there three months as a requirement of the internship phase of

BBA program under the department of business administration of IIUC. I have

selected one topic :

"GENERAL BANKING ACTIVITIES OF AB BANK LIMITED"

This report is originated as a partial requirement of BBA program .

The AB Bank Limited is one of the leading private commercial bank in the

country. It incorporated in Bangladesh on 31st December 1981 & started itsoperation with effect from April 12,1982.


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^ABBank

As they are facing the challenges on way to further improving the profitability

of the bank, they have to rely on their skilled & experienced workforce. The

organizational structure is included in terms of organization culture & quality of

work life. Then I have moved on towards the strategic, operational and legalissues of the ABBL to justify the report.

I discussed about General Banking , its prospect & necessity. General banking

operation like : General Accounts Opening Section , Requirement of opening

current A/C, Saving A/C, Fixed Deposits A/C, Rate of interest on Deposits,

Procedure closing A/C, Cheque clearing & bills department section, Collection

section, Local Remittance department, Deposits section, Loans & credits

department.

Foreign trade department plays a major role in the international business. Here

banks offer opening a letter of credit (L/C) Indifferent forms , provide theexporter the guarantee of payment of the merchandise exporter & the importer

the title of goods. International business is unthinkable without the facility of

the L/C. Bank also offers different loan facility in pre-shipment & post-

shipment level.

10


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CHAPTER ONE

Introduction of the report

Segment Objective

This Section will focus on :1.0) Introduction.

1.1) Background of the report

1.2) Objective of the report

1.3) Scope of the report

1.4) Sources of information

1.5) Limitation of the study

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^ABBank

1.0) INTRODUCTION :

1.1) Background of the report;

A bank is a financial institution whose main objective is the mobilization of

fund from surplus unit to deficit unit . In the process of acceptance & provisionof loan, banks create money . This characteristics feature sets Bank apart from

other financial institution. A Bank can influence the money supply through

lending & investment . A Bank is also an economic institution whose objective

is to earn profit through exchange of money & credit instruments.

Commercial bank is one, which is concern with accepting deposits of money

from the public, repaying on demand or otherwise & withdrawal on demand or

otherwise & employing the deposits in the form of loan & investment to meet

the financial needs of business & other classes of society.

Bank is very old institution that is contributing toward the development ofeconomy & an important service provider in the modern world. In the

globalization & free market economy, banks provide their service worldwide &

compete with other all over the

world.

The banking sector is one of the major sectors in Bangladesh economy & can be

divided mainly in to four categories - Nationalized bank, Local private bank ,

Specialized financial institution & Foreign banks. In Bangladesh, the journey of

private commercial banks is not older. The banking in Bangladesh has passed

three decades through different policy environment & comprises central bank at

the apex.

12


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^ABBank

The country's central bank, Bangladesh Bank, controls & monitors the banking

industry. At percent, there are 4 nationalized, 5 are specialized, 30 are local

private commercial banks & 10 are foreign commercial banks. AB Bank Ltd. is

one of the prominent thirds generation banks in the banking sector.1.2) Objective of the report:

The primary objective of this report is to partial fulfillment of BBA degree &

achievement of the knowledge about how bank mobilize their surplus fund to

the deficient units of AB Bank Ltd. There are some other important objectives

of this report

are as follows:

- Acquiring experience for future working life.

- To describe the customer service process of AB Bank Ltd.

- To analysis the bank position of deposits mobilization.- To get knowledge about the products & services offered by AB Bank Ltd.

- To analysis how well manage a customer.

1.3) Scope of the report:

The internship program is a partial requirement of the BBA program of the

International Islamic University Chittagong, Dhaka campus. Which construct &

build a bridge between the real life state of affairs & theoretical concepts, which

were taught in the class room. It is a great opportunity for me to get the practical

knowledge of the corporate world. That's why I had to join in the AB Bank Ltd.

(Mirpur Branch) as an internee & my internship report is based on the practical

experience that I gained from there.

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^ABBank

I A) Source of in formation :

The required data & information to prepare the report have been collected from

the following sources :

1.4.1) Primary Sources ;Personal interview with branch officials or executives.

- Practical desk work.

Getting information from face to face dealing with the client.

- Interviewing the persons who are treated experts in respective to the

assignment. Customer file study in the account opening & loan div

1.4.2) Secondary Sources :

- Annual report of AB Bank Ltd-2008

- Web site of ABBL.

- Bangladesh Bank report.- Published or unpublished or personally collected data from officers.

- Files & documents of the branch.

- Some articles on banking sectors. Different textbooks.

1.5) Limitation of the study :

AB Bank Ltd. is a large financial institution, therefore it is not possible to find

out the true picture within a short period. To prepare the report I faced some

problems & limitations. Those limitations are unavoidable for me. That may

causes reduction in the quality of my report. Some of the major limitations are

pointed below.

- Time constraint is one of the major limitations to know all the inside

information of the bank.

- Bank has no formal guidelines for internship.

Employees are so busy with their work. That's why they do not have sufficient

time to co-operate with me.

14

8?


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I

I

Chapter Two Overview of the organization

Segment Objective

This Section Will Focus On :2.1) Historical background of AB Bank Limited

2.2) Vision & Mission

2.3) Corporate structure

2.4) Corporate information of AB Bank Limited

2.5) Management Hierarchy of ABBL

2.6) Financial Statement

15


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^ABBank 1.0) OVERVIEW OF THE ORGANIZATION :

r2.1) Historical Background of AB Bank Limited

AB Bank Limited ,the first private sector bank under joint venture with Dubai

Bank Limited. UAE incorporated in Bangladesh on 31st December 1981 &

started its operation with effect from April 12,1982.Dubai Bank Limited (name subsequently changed to Union Bank of the

Middleast Limited) decided to off-load their investment in AB Bank Limited

with a view to concentrate their activities in the UAE in early part of 1987 & in

teams of Articles 23 A & 23B of the Articles of association of the company &

with the necessary approval of the relevant authorities, the shares held by them

in the Bank were sold & transferred to Group "A" Shareholders, i.e. Bangladesh

Sponsor Shareholders.

As of December 31,2006 ; the authorized capital & the equity (paid up capital &

reserve) of the bank are BDT 2000 million & BDT 2582.76 millionrespectively. The sponsor-shareholder hold 50% of the share capital; the

General Public Shareholders hold 49.43% & the rest 0.57% shares are held by

the Government of the People's Republic of Bangladesh. However, on

individual sponsor shareholder of more then 10% of its total shares.

Since beginning, the bank acquired confidence & trust of the public & business

houses by rendering high quality services in different areas of banking

operations, professional competence & employment of state of art technology.

During the last 27 years, AB Bank Limited has opened 73 Branches in different

Business centers of the country, one foreign Branches in Mumbai, India, two

Representative

16

SB?


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^ABBank

Officer in London & Yangon, Myanmar respectively & also established a

wholly owned subsidiary finance.

Company in Hong Kong in the name of AB Bank International Finance

Limited. To facilitates cross border trade & payment related services, the Bankhas correspondent relationship with over 220 international banks of repute

across 58 countries of world.

AB Bank Limited, the premier sector bank of the country is making headway

with a mark of sustainable growth. The overall performance indicates mark of

improvement with Deposit reaching BDT 42076.99 million ,which is precisely

53.78% higher then the preceding year. On the Advance side, the Bank has been

able to achieve 46.32% increase, thereby raising a total portfolio to BDT

31289.25 million which places the bank in the top tier of private sector

commercial banks of the country.On account of Foreign Trade ,the bank made a significant headway in respect of

import, export & inflow of foreign exchange remittances from abroad.

17


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^ABBank

Officer in London & Yangon, Myanmar respectively & also established a

wholly owned subsidiary finance.

Company in Hong Kong in the name of AB Bank International Finance

Limited. To facilitates cross border trade & payment related services, the Bankhas correspondent relationship with over 220 international banks of repute

across 58 countries of world.

AB Bank Limited, the premier sector bank of the country is making headway

with a mark of sustainable growth. The overall performance indicates mark of

improvement with Deposit reaching BDT 42076.99 million ,which is precisely

53.78% higher then the preceding year. On the Advance side, the Bank has been

able to achieve 46.32% increase, thereby raising a total portfolio to BDT

31289.25 million which places the bank in the top tier of private sector

commercial banks of the country.On account of Foreign Trade ,the bank made a significant headway in respect of

import, export & inflow of foreign exchange remittances from abroad.

17


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^ABBank

2.2) AB Bank Limited: at a glance

Name Legal form

: AB Bank Limited

: A public company incorporated in Bangladesh on 31st December, 1981 underthe Companies Act, 1913 and listed in DSE and CSE.

Date of commencement : 27th February 1982.

Registration Number : C281461 (1992)/95

Present No of Branches : 74

No of ATM booth Registered office

GPO Box

: BCIC Bhaban 30-31, DilkushaC/A Dhaka-1000, Bangladesh. :3522

Telephone

:(+8802)956 0312Telefax

No of foreign

Correspondences/Bank

SWIFT code

:(+8802) 956-4122-23

350

:ABBLBDDH

E-mail

: [email protected]

Web site

18

www.abbank.com.bd


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2.3) VISION & MISSION ;

2.3.1) Vision Statement:

" To be the trendsetter for innovative banking with excellence & perfection "

2.3.2) Mission Statement:

" To be the best performing bank in the country "19


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^> AB Bank

2.4)Change of name:

Arab Bangladesh Bank Limited changed its name to AB Bank

Limited(ABBL) with effect from 14 November 2007 vide Bangladesh Bank

BRPD circular letter no.-10 dated 22 November 2007.Prior to that shareholdersof the bank approved the change of name in the Extra-Ordinary General

Meeting held on 4 September 2007.

2.5)Birth OF the Logo

The coat of arms of the new logo is inspired by traditional "Shital pati " or

"Sleeping mat". The knit and the pattern of interlace in the new logo that

echoes the intricate weave of Shital pati symbolizes bonding. This bonding

reflects the new spirit of AB Bank.

2.6)Company Philosophy

The motto or the philosophy of the Bank is "Bonding Generation". Whetherin Personal, Corporate, Treasury or Trade transactions AB Bank Limited is

committed to provide the best. Meeting the demand of the bank's discerning

customers is not the sole objective. The Bank endeavor to deliver a quality that

makes every transaction a pleasurable experience. AB Bankfeels that, if they

can meet maximum clientele requirements in less time with efficiency, then

they will be able to accomplish a successful business in the world of banking.

Their main objective is - they want to provide every single customer service

available in today's banking procedure for their clientele. Thus they can

guarantee the excellence in banking to their valuable customers.AB Bankhas

remained a bridge-builder between generations for the past 26 years through its

reliable, modern and efficient services.

20


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^> AB Bank

2.4)Change of name:

Arab Bangladesh Bank Limited changed its name to AB Bank

Limited(ABBL) with effect from 14 November 2007 vide Bangladesh Bank

BRPD circular letter no.-10 dated 22 November 2007.Prior to that shareholdersof the bank approved the change of name in the Extra-Ordinary General

Meeting held on 4 September 2007.

2.5)Birth OF the Logo

The coat of arms of the new logo is inspired by traditional "Shital pati " or

"Sleeping mat". The knit and the pattern of interlace in the new logo that

echoes the intricate weave of Shital pati symbolizes bonding. This bonding

reflects the new spirit of AB Bank.

2.6)Company Philosophy

The motto or the philosophy of the Bank is "Bonding Generation". Whetherin Personal, Corporate, Treasury or Trade transactions AB Bank Limited is

committed to provide the best. Meeting the demand of the bank's discerning

customers is not the sole objective. The Bank endeavor to deliver a quality that

makes every transaction a pleasurable experience. AB Bankfeels that, if they

can meet maximum clientele requirements in less time with efficiency, then

they will be able to accomplish a successful business in the world of banking.

Their main objective is - they want to provide every single customer service

available in today's banking procedure for their clientele. Thus they can

guarantee the excellence in banking to their valuable customers.AB Bankhas

remained a bridge-builder between generations for the past 26 years through its

reliable, modern and efficient services.

20


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> AB Bank

2.7) Branch Location :

DHAKA DIVISION :

1. Bandura

2. Joypara3. Nawabpur Road

4. Kakrail

5. Bhairab Bazar

6. New Elephant Road

7. Karwan Bazar

8. Board Bazar

9. North South Road

10.Madhabdi

11. Chandra12. Mirpur

13.Pagla

14. Dhanmondi

15. Motijheel

16. Principal Branch

17. Imamganj

18. Mohakhali

19. Rokeya Sharani

20. Gulshan

21. Mymensingh

22. Uttara

23. Jinjira

24. Narayanganj

25. Islampur

21


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> AB Bank

Chittagong Division :

1. Agrabad

2. Chaumuhani

3. Khulshi4. Comilla

5. Lohagara

6. Bahaddarhat

7. Cox's Bazar

8. Boalkhali

9. Export Processing Zone (EPZ)

10. Port connecting Road

11. Brahmanbaria

12. Feni13. Sitakunda

14. CD A Avenue

Khulna Division :

1 .Benapole

2.Jhikargacha

3.Kushtia

4. Jessore

5. Khulna 6.Satkhira

22


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^ABBank

Raishahi Division;

1 .Bogra

2.Naogaon

S.Rangpur4.Chapai

5.Nawabganj

6. Saidpur

Svhhet Division :

1 .Boroikandi

2. Garden Tower

3. Sreemongal

4. Tajpur

5. Dargahgate6.Moulvibazar

Barisal Division:

1 .Barisal

23

L


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2.8)Organogram of AB Bank Ltd:

24

Managing director

Deputy Managing DirectorSenior Executive Vice President

Executive Vice President

Senior Vice President

Executive Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

Senior Principle Officer

Principle OfficerSenior Officer

Officer

^ABBank


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AB Bank Limited

Balance Sheet As at 31 December 2008

PROPERTY AND ASSETS

Cash

In hand (including foreign currencies)Balance with Bangladesh Bank and its agent bank(s)

(including foreign currencies)

Balance with other banks and financial institutions

In Bangladesh Outside Bangladesh

Money at call and on short notice

Investments

Government

Others

Loans and advancesLoans, cash credits, overdrafts, etc Bills purchased and discounted

Fixed assets including premises, furniture and fixtures

Other assets Non-banking assets

Total Assets

LIABILITIES AND CAPITAL

Liabilities

Borrowings from other banks, financial institutions and agents

Deposits and other accounts

Current deposits

Demand deposits Bills

payable Savings bank

deposits Short-term

deposits Fixed

deposits

Bearer certificates of deposit

Other deposits

Other liabilities Total Liabilities

Capital/Shareholders' Equity Total Shareholders' Equity

Paid-up capitalStatutory reserve '"-.

Other reserve

Retained earnings

Total Liabilities and Shareholders' Equity

25

Notes 31.12.2008

1MB

31.12.2007

Taka


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3

3.1

3.2 4

4.1

4.25 6

6.1

6.2

7 8

9 10

4,096,044,155

4,299,269,940

679,556,149

3,416,488,006

671,113,391

3,628,156,549

2,300,013,425

1,860,735,223

993,239,274

1,306,774,151

718,485,962

1,142,249,261

1,190,678,360

574,080,317 11,408,536,0628,884,601,130

7,159,183,261

4,249,352,801

5,855,269,461

3,029,331,670

56,708,771,906

40,915,352,218

54,412,358,249

2.296.413.657

39,303,901,301

1,611,450,918

2,444,650,234

2,381,004,409 5,904,918,443

4,634,821,166

84,053,612,585

63,549,864,403

11 3,193,343,038

1,872,010,02* 12

68,560,474,323

53,375,348,391

5,063,421,076 4,371,717,515

2,523,379,991 2,666,304,319


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1,176,651,056 1,105,058,168

9,726,178,008 8,493,116,434

5,089,676,621 3,396,098,545

40,732,652,29

2

31,131,930,49

1

130,325,000 130,325,000

4,118,190,280 2,080,797,920

1314

15

16

17

5,577,289,877

3,790,916,719

77,331,107,238

59,038,275,138

6,722,505,347

4,511,589,265

2,229,785,400

2,066,121,258

636,829,248

1,789,769,440

743,261,800

1,356,905,450

715,626,287

1,695,795,728

84,053,612,585

63,549,864,403


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AB Bank Limited

Profit and Loss Account For the year ended 31 December 2008

[RATING INCOME

est Income

est paid on deposits and borrowings, etc.interest income

tetment Income

mission, exchange and brokerage I jroperating Income

il operating income (a)

RATING EXPENSES

(y and allowances

, taxes, insurance, electricity, etc

I expenses

age, stamps, telecommunication, etc.onery, printing, advertisement, etc.

(executive's salary and fees

ictors' fees

tors' fees

rges on loan losses

redation and repairs of Bank's assets

sr expensesil operating expenses (b)

Vit before provision (c = a-b)

sion against loans and advances

sion for diminution In value of investments'

provisions

provision (d)

t before taxation (c-d)

sion for taxation

nttax

rred tax

profit after taxation

opriationsiory reserve

ral reserve

ends, etc

ined surplus

ings Per Share (EPS)

annexed notes form an Integral part of the Profit and Loss Account

Notes 2008 2007

Taka Taka


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20 7,366,847,21

3

5,269,904,6

60

21 (5.336,153.27

4)

(3.830.623.4

89)

2,030,693,93

8

1/439,281,1

71

2 2,152,888,46

3

1,734,306,4

46

2 1,759,019,17

1

1,305,338,9

22

23 206.424.306 177,654.705

24 4,118,331,83

9

3,217,300,0

74

6,149,025,87

8

4,656,581,2

45

1,008,675,51

2s

696,776,012

25 173,906,367 144,255,680

26 4,409,340 1,912,103

27 57,105,073 57,413,151

28 64,989,223 44,720,259

29 7,341,452 5,599,996

2,378,949 1,588,592

3 1,562,100 2,116,415

0


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31 154,558,663 117,971,014

375,711,044 258,934.177

32 1,850,637,72

2

1,331,287,4

00

33 4,298,388,15

5

3,325,293,8

45

281,266,515 366,000,000

117,153,000 9,400,000

34 299.347.000 13 1.

900.000

35 097.786315 507,300,000

36 3,600,621,84

0

2,817,993,8

45

1.300.000.00

0

914.500.000

1,381,655,68

4

831,228,293

13.2 (81,655.684) 83,271.707

2,300,621,64

0

1,903,493,8

45

720,124,328 563,598,769

37

720,124,328 563,598,769

1,580,497,31

2

1,339,895,0

76


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103.18 8537

38

26


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AB Bank

3.0)Overview of ABBL, Mirpur Branch

th

Mirpur branch is the local branch of the bank in Dhaka. It was established in 28

March 1994. At present 22 officers are working in the branch. Code no. of thebranch is 4015. Present address of the branch is 5-A/5-B, Darus Salam Main

Road (1st & 2nd floor).Section-1, Mirpur, Dhaka-1216. E-mail ID of the

branch: [email protected]

AB Bank is totally involved with the modern IT facilities. The bank is running

their business under fully online service. They uses modern technological

products ,like computer, printer, scanner, photocopier, telephone, fax, internet

facility etc. The security system of this bank is so restricted, they uses (CC)

close circuit camera for monitor every functions of the branch.

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^ABBank

3 .1)Organizational structure of Mirpur branch

Vice President (VP) &Relationship Manager

Assistant Vice President (AVP)& Sub Manager

Senior Principal Officer (SPO)Principal Officer (PO)

\ /

Senior Officer (SO)

I

Officer (O)

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^ABBank

3.2) Department of the Branch :

There are several departments of the AB Bank Mirpur Branch that help for the

smooth running of the banking business

Departments...of The Branch

Account opening & customer service Cash

V^MtSll

Clearing

- Ledger/ deposit

[Remittance

Fixed deposit receipt (FDR) Loan and Advance

AB Bank wants to build 'cement relationship with customers' and General

banking creates a vital link between customer and bank. It's really crucial

department for the progression of the bank. It is the introductory department of

the Bank to its customer The AB Bank Mirpur Branch has the required section

of general Banking. Every day it receives deposits from customers and meets

their demands for cash by honoring instruments. General Banking department is

that department which is mostly exposed to the maximum number of bank

customer.

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3.3) Present Position:

^ABBank

Particulars Year

2005 2006 2007 2008

Deposit 111.34 127.35 136.74 125.28

Advance 188.79 203.25 187.47 140.89

Profit 6.19 10.07 10.20 7.44

Letter of credit 211 265.28 285.15 149.77

Export 17.00 27.72 25.92 23.74

188.79, 7% 111.34,4%

2005, 80%

m Particulars

D Deposit

D Advance

Profitq Letter of credit

Export

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Chapter Four Function of ABBL

Segment Objective This section will focus on :

4.0) General Banking System 4.1.) Accounts opening Department

4.2) Remittance Department

4.3) Foreign Exchange Department4.4) Credit / loan Department

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^ABBank

4.1 .DCurrent short term deposits (CD)

In future Current Account is opened for both individuals & business concerns

including non-profit making organization. But now individual account is closed

for the by the order of Bangladesh Bank. Account must be open only on thename of business.

For opening a sole proprietorship account, the account holder must provide his

organizations names , what type of organization that is, where that is located,

his true names, present & permanent address of the business owners, date of

birth, place of birth, account holders recent two copies color passport size

photograph , one copy nominees photograph, proprietorship valid trade license

photocopy, TIN certificate, national ID card photocopy or passport or other

employees ID card or certificates from the ward commissioner or union council

chairman certificates. Detail of occupation or employment & source of wealthor income. He have to need a introducer, who has a existing account with

ABBL.

The requirement of sole limited company account is same as of sole

proprietorship account plus:

Certificate of incorporation.

Resolution of the board of directors.

Memorandum & articles of association.

Proper information as of personal account & directors & account operators.

Certificate of the returns submitted to the register of joint stock companies.

Attestation by embassies or high commissions in the respective countries if the

company is incorporated outside of Bangladesh.

Also different club, co-operative society, private school, college & madrasa,

trustee board can open current as per provide their board

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^ABBank

resolution, deed of those organization & others documents as per types of

organization.

4.1.2)Saving Account (SB);

Saving account always opened by individuals for saving purpose of depositedamount over a period of time. For opening a saving account a persons must

provide his true names, parents names, present & permanent address, date of

birth, place of birth, account holders two copy color photograph, one nominees

photograph, voter ID card or passport or other employees ID card or certificate

from the ward commissioner or union council chairman certificates. Detail of

occupation or employment & source of wealth or income. He have to need a

introducer, who has a existing account with ABBL. Interest on saving account is

6.00%.

4.1.3)Fixed Deposits Account (FDR);The Bank offers higher rates of interest on such deposits. Usually customer are

allowed to open this A/C for a certain period. FDR with different maturity

offered by the bank can be shown by the Following table:

Maturity Interest rates

Up to 10 lac Over 10 lac to 50 lac Above 50 lac

FDR for 1 months 8% 8.25% 8.50%

FDR for 3 months 9.50% 9.50% 10.00%

FDR for 6 months 9.00% 9.00% 9.50%

FDR for 12 months

& above

11% 11.25% 11.50%

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> AB Bank

Interest rates Up to 10 lac

11%, 30%

9.00%, 24%

8%, 21%9.50%, 25%

I FOR for 1 months I FOR for 3 months ! D FDRfor 6 months

O FOR for 12 months & above

4.1.4)Monthlv Saving Deposit (MSDS);

Monthly saving deposit account open for the businessman & for the general

people who wants to save money. This account must deposit with in 10th

banking days of every month & if any one fail to deposit then deposit next with

current month installment by provide some fine.

4.1.5)Double Deposit Scheme (DPS):Deposited amount multiple within 6years & minimum deposited amount is 1

lac to above.

4.1.6)Special Term Deposit (STD);

These types of account also known as special notice deposit & STD account

provide interest for minimum balance TK.5 lac to above & interest rate is

5.00%.

36

SB?


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4.2)Procedure of Closing Account;

A customer may close out his/her account any time submitting to the branch.

The customer should be asked to draw the final check for the amount standing

to credit of his account less the amount an other incidental charge & surrender

the unused cheque leaves. The account be debited for the account closingcharge etc. And unused cheque leaves should be destroyed by the authorized

officer of the bank.

4.3)Remittance Department:

4.3.1)Local Remittance Department;

Banks have a wide network of branches all over the country & offer various

kinols at

remittance facilities to the public. Obviously the bank charges commission on

the basis of bills amount. Remittance are safe , swift, inexpensive & simple.

Type of Remittance ;a) Pay order (PO)

b) Demand Draft (DD)

c) Telegraphic Transfer (TT)

Pay Order (PO);

Pay order is an instruments, which is used to remit money with in a city through

banking channel the instrument are generally safe as most of them are crossed.

Demand Draft (DD):

Demand draft is many popular instrument for memiting money from corner of

country another. The instrument is basically used for transfer & payment.

Difference between pay order & Demand Draft is in terms of place only PO is

used for remittance money with

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4.2)Procedure of Closing Account;

A customer may close out his/her account any time submitting to the branch.

The customer should be asked to draw the final check for the amount standing

to credit of his account less the amount an other incidental charge & surrender

the unused cheque leaves. The account be debited for the account closingcharge etc. And unused cheque leaves should be destroyed by the authorized

officer of the bank.

4.3)Remittance Department:

4.3.1)Local Remittance Department;

Banks have a wide network of branches all over the country & offer various

kinols at

remittance facilities to the public. Obviously the bank charges commission on

the basis of bills amount. Remittance are safe , swift, inexpensive & simple.

Type of Remittance ;a) Pay order (PO)

b) Demand Draft (DD)

c) Telegraphic Transfer (TT)

Pay Order (PO);

Pay order is an instruments, which is used to remit money with in a city through

banking channel the instrument are generally safe as most of them are crossed.

Demand Draft (DD):

Demand draft is many popular instrument for memiting money from corner of

country another. The instrument is basically used for transfer & payment.

Difference between pay order & Demand Draft is in terms of place only PO is

used for remittance money with

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^ABBank

the city where as DD is used for within the country too, constitute current

liability on the part of a Bank.

Telegraph Transfer (TT) ;

Telegraph Transfer is one of the fastest means of transferring money from onebranch to another or from one to another. The TT issuing bank instructs its

counterpart by telex message regarding remittance of money. No instruments is

given for TT, Both parties should have account as money is for transferred.

4.3.2)Foreign Remittance ;

The word "REMITTANCE" means transfer of funds from one place to another

either within the country (local Remittance) or from one country to

other globally (Foreign Remittance) by means of different recognized modes.

The foreign remittance is divided into two (2) parts, which is :

- Outward Foreign Remittance- Inward Foreign Remittance

Outward Foreign Remittance ;

An outward foreign remittance in involves foreign trade & is as such subject to

the approval of Bangladesh Bank with the expectation of remittances, for

specified purposes for which authorized dealers (AD's) have the authority to

initiate remittances without prior reference to the central bank.

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V> AB Bank

Inward Foreign Remittance ;

Inward foreign remittance covers purchase of foreign currency in the form of

foreign T.T, D.D & bills, T.C etc. Sent from abroad favoring a beneficiary in

Bangladesh. Purchase of foreign exchange is to be reported to ExchangeControl Department of Bangladesh Bank.

Types of Foreign Remittance ;

Foreign Demand Drafts (FDD)

Mail Transfer (MT)

Traveler's Cheque (TC)

Foreign Exchange Department;

Trade refers to the process or mechanism by which the currency of one country

is converted into the currency of another country. Foreign trade is the means &

methods by which rights to wealth in another country's currency.Transfer of goods & services from one country to another country against

foreign exchange. Trade among nations is a common occurrence & normally

benefit both the exporter & importer.

Components of Foreign Trade ;

Foreign Trade mainly divided into three wings. They are as below

Import

Export

Foreign Remittances

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^ABBank

4.4) Regulation for foreign

Local Regulations:

Our foreign exchange transactions are being controlled by the following rules &regulation. .

*> Foreign Exchange Regulation Act 1947.

*> Bangladesh Bank issues foreign exchange circular from time to time to

control the export, import & remittance business.


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&> AB Bank


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is advised to the supplier. If the intermediary bank simply advises/notifies the

L/C to the exporter without any obligation on its part, it is called "Advising

Bank".

The Confirming Bank;

If the Advising Bank also adds its own undertaking to honor the credit whileadvising the same to the beneficiary, he becomes the Confirming Bank, in

addition, becomes liable to pay for documents in conformity with the L/C's

terms and conditions.

The Negotiating Bank:

The Bank that negotiates the bill of exporter drawn under the credit is known as

Negotiating Bank. If the advising bank is also authorized to negotiate the bill

drawn by the exporter, he becomes the Negotiating Bank.

The Accepting Bank:

A Bank that accepts time or unasked drafts on behalf of the importer is called anAccepting Bank. The Issuing Bank can also be the Accepting Bank.

The Paying Bank and the Reimbursing Bank:

If the Issuing Bank does not maintain any account with a bank that will be

negotiating the documents under a L/C, then arrangement is made to reimburse

the negotiating bank for the amount to be paid under from some other bank with

which the Issuing Bank maintains his account. The latter bank is known as

Reimbursing Bank.

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^ABBank

Foreign Exchange Mechanism:

MHBH

^^^^^ I SFIJFR

BUYER/ \ EXPORTER

IMPORTER T ' BENEFICIARY

Ma

kesPaymentagainstDocu

ment

j ,

' k g* 05

! 1 ^ I

O

o c D

? 1

^j

; P3 5^ AB Bank

4.11)Money transfer:

Western Union

a fast, reliable and convenient way to

send a moneytransfer:

Western Union Financial Services Inc. U.S.A. is the number one and reliable

money transfer company in the world. This modern Electronic Technology

based money transfer company has earned world wide reputation in transferring

money from one country to another country within the shortest possible time.

AB Bank Limited has set up a Representation Agreement with Western Union

Financial Services Inc. U.S.A. Millions of people have confidence on Western

Union for sending money to their friends and family. Through Western Union

Money Transfer Service, Bangladeshi Wage Earners can send and receivemoney quickly from over 280,000 Western Union Agent Locations in over 200

countries and territories world wide- the world's largest network of its kind,

only by visiting any branches of AB Bank Limited in Bangladesh.

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^ABBank

4.12)Types of Cheques collected by clearing Department:

01.Transfer Cheque:

Transfer cheques are those cheques which are colleted and paid by the same

branch ofABBank.02.Local Bills Collection Cheques (LBC):

Local bills collection cheques are those cheques which are collected and paid by

two different branches of a bank situated in the same city.

03. Outward Bills Collection Cheques (OBC):

OBC cheques are those cheques, which are collected and paid by two different

branches of same or different bank situated in the outstation.

04. Clearing Cheques:

When the payee or endorsee (whoever deposits cheque for collection) and the

drawer of a cheque maintain accounts with different banks, the collecting bankcan receive the amounts of cheques from the paying banker is any of the

following manners:


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^ABBank

Frequent transportation of the currency, but it has all the other disadvantages of

the first. Besides, it may result in lying up the bank can maintain account with

the paying banks (practically of the local banks), deposit cheques with the

drawee banks for credit to its account. The method avoids the risk ofconsiderable sums of the money most of the local banks.

The most efficient method of collecting and paying such cheques is that in

which these cheques are exchanged by representatives of the various banks,

who meet a fixed place at fixed hours and make the settlement through

controlling banks. The banks, so joining, from themselves into a "member of

clearing house" and the fixed meeting place are called a "clearing house".

4.13)The Clearing House:

Where inter-bank receivables and obligations are settled. A particular

house/place under the control and supervision of the central bank of the countrywhere representatives of the member banks / scheduled banks/ assembles/meet

together for settlement of their respective banks receivables and payables. It sits

on all working days. In our country clearing house is organized by the

Bangladesh Bank (state bank of Bangladesh) at the different big cities.

49

J


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Common procedure for all kind of cheques etc;

* Receiving and scrutinizing the cheques and other deposit instruments, and

the pay-in-slip at the counter.

*J*Affixing the stamps.

** Scrutiny receipt by the authorized officer.*** Returning the counterfoil to the depositor.

* Separate the cheques into transfer, LBC & clearing house.

Scrutiny of the pay-in-slip (Deposit-slip) & cheques:

1) On both the counter-foil and the deposit-slip, the following should be

checked -


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^ABBank

8) The instrument is checked for any apparent discrepancy and is compare with

the particulars noted in the pay-in-slip and its counter foil.

9) In case an order instrument is being deposited in second payee's account

guarantee may be obtained from the second payee and is attached to the pay-in-slip.

10) In case the payee's name on the crossed instruments may be accepted but

only from customers well known to the bank and after obtaining an indemnity.

11) The amount noted should be the same as the amount of the instrument and

the amount in words and figure should be same.

4.14)Types of Clearing;

Outward Clearing:-

When a particular branch receives instrument drawn on the other bank within

the clearing zone and those instruments for collection through the clearingarrangement is considered as outward clearing for that particular branch.

Inward Clearing:-

When a particular branch receives instruments which drawn on themselves and

sent by the other member bank for collection are treated as inward clearing.

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Common procedure for all kind of cheques etc;

* Receiving and scrutinizing the cheques and other deposit instruments, and

the pay-in-slip at the counter.

*J*Affixing the stamps.

** Scrutiny receipt by the authorized officer.*** Returning the counterfoil to the depositor.

* Separate the cheques into transfer, LBC & clearing house.

Scrutiny of the pay-in-slip (Deposit-slip) & cheques:

1) On both the counter-foil and the deposit-slip, the following should be

checked -


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^ABBank

4.15)Process Flow Chart Clearing (Inward):

52

Receipt of the instrument from messenger

Scrutiny of the instrument & tallying the amount of the schedule & that of theinstrument.

J3-

Entry into Inward Clearing Register

Sending the instrument to respective department for posting

preparation of single credit voucher & IBCA of honored cheques / instruments

Preparation of reason memo if any dishonor cheque/instruments

Hand-over the IBCA & dishonor instruments if any to messenger.

Filling the schedules and statements in the respective files

mrtrtb~

SB?


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> AB Bank4.16)Process Flow Chart Clearing (Outward):

Receipt of the instruments with the paying-in-slip

43-

Scrutiny of the instruments & paying-in-slip & affixing Received Seal

43-Affixing Special Crossing Endorsement & clearing Seal on the back of the

instrument.

Return of the counterfoil to the depositor with seal signature.

43-

Entry into the Outward Register.

43-

Separation of the instrument from the paying-in-slip.

Classification of the instrument first bank wise & then branch wise.

Preparation of schedule branch wise & bank wise & signed.Preparation of clearing house book & signed by the officer.

43-

Tally the total of clearing house-book with the total amount shown in the

clearing register.

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AB Bank

Preparation of the debit Voucher (IBDA) by debiting Local Branch.

43-

Sending the instrument, schedule, clearing house-book along with IBDA to the

Local office through messenger.Filling/Recording all office copies.

Releasing the credit vouchers to respective dept. for posting.

Preparation of Debit Voucher if any instrument returned dishonor.

4.17)Cheque returns:

Reasons for returning cheques:

* Insufficient fund/balance exceeded.

* Account closed.

> Payment stopped.

Amount in words and figures differs.* Drawer signature differs/illegible/required.

Alteration/mutilation requires drawer's confirmation.

Cheque post dated /cheque out of date.

** Date incomplete /wrong/missing.

Payee's endorsement required /irregular.


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^ABBank

> Warrant no./folio no./advice no. differ from booklet.


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t To record daily IBTA (Inter branch transaction account) Extract.

*J* To prepare statement of income for everyday


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5* AB Bank

4.19)Loan and Advance department:

Loan and advance department is the heart of bank. The major source of Bank's

income conies from loan and advance. For this reason, Proper credit

management is a crying need of a bank. This section is crucial for the bankbecause of the associate risk and profit potential. There are several types of

credit that the bank offers for the customer. Bank loan or bank advance is a

form of finance. It indicates- a specified sum of money lent by a bank to

customer, usually for a specified rate of ordinary interest (calculated by taking

360 day as a year). Handling 'load and advance' is the major function of bank.

Difference between loan and advance:

Loan: It refers to loan term credit i, e"money lent by a bank for more than one

year (e.g.5

or 10 or 15 year etc)Such as - Loan general, House building loan, Project loan etc.

Advance: it refers to short term credit i.e. 'Money lent by a bank for less than

one year' Such as - Cash credit, overdraft, discount etc.

In comprehensive sense, loan is considered as a part of advance despite of the

above difference. AB Bankalso classified loans and advances according to this

comprehensive

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AB Bank

Different Advances offered by ABBL

Advances

-Loan General

-House Building Loan-Loan against Imported Merchandise

-Loan Against Trust Receipt

-Loan Against Packing Credit

-Transport Loan Project loan

-Demand Loan

-Consumer Finance

-Lease finance

-Small Business Loan

-House renovation loanSOD (FO) (G)

-Pledge

-Hypothecation

-Inland Bills Purchased Foreign Bills Purchased

-FDBP & Discounted Payment against document

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> AB Bank

Personal Loan

Festival small business loan

Festival personal loan

Housing loanLoans:

Under the loan system, credit is given for a definite purpose and for a

predetermined period. Normally, these loans are repayable in installments, some

major loans of the bank are describes as under:

a) Loan General:

When an advance is made in lump sum repayable either in fixed monthly

installments and no subsequent debit is ordinarily allowed expect by way of

interest, incidental charges etc called general loan, it is usually for a single

purpose where the entire amount may be required at a time or in a number ofinstallments within a short period of time. Generally, when the advance can't be

classified into any category, it is considered as 'Loan General'.

b) House Building loan:

In order to solve financial incompatibility to make a house, the bank offers this

loan to middle class people. Period of loan is maximum 5 years. Limit of the

amount of the loan depends on the customer banker relationship.

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^ABBank

c) Loan against imported merchandise (LIM):

LIM is a temporary loan and allowed against imported goods. LIM may be

created at the request of the importer while he is not in a position to take

delivery of import bills by making payment of entire bank dues. The importerhas to keep the goods in bank's custody for getting this loan.

d) Loan against trust receipt (LTR):

LTR is also a temporary loan and allowed to the customer against their

application on the basis of only trust which is generally built on good customer-

banker relationship. After sanction of LTR, import bills are handled over to the

importer who will clear the goods from the custom authorities by making

payment duty, VAT and other charges.

e) Consumer finance scheme:

The Scheme aims at improving the standard of living of the fixed income group.Under the scheme the clients may secure loan facilities at easy installments to

procure household amenities. It meets household needs of service holders:

Furniture/ TV/ Refrigeration & others house-hold durables. Its Credit Ceiling is

Up to tk. 1.00 lac and term is 2 years.

f) Lease finance scheme:

An entrepreneur, under this scheme, may avail of the lease facilities to procure

industrial machinery (without having to purchase it by down payment) with

easy repayment schedule. The clients also get special rebate in their income- tax

payment

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^ABBank

under the scheme. Items leased out to the new/ existing industries to procure

machines for the industries.

g) Small business loan:

This loan is introduced for smooth running/ expansion of business of smallentrepreneurs who are honest, sincere & promising. This type of loan diversifies

bank's lending with the requirement of the time. Its 'Credit Ceiling' is Up to tk.

5.00 Lac and 'term' is 2-5 years.

h) House renovation loan:

The purpose of the loan is to help genuine house or flat owners (not developers)

to undertake repairing or renovation works for better living or increased rental

income. 'Credit ceiling' of the loan is Up to tk. 5.00 Lac and 'Term' is 5 year.

I) Personal loan:

The loan serves the purpose of meeting emergency financial expenses of serviceholders such as Medical treatment, Marriage, Maternity, Admission of Children,

Purchase of banks, Exam fees etc. Credit Ceiling of the loan is Up to tk. 1.00

Lac and Term is at least 6 month but not more than 3 years.

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>> AB Bank

Overdrafts:

When a current account holder is permitted by the banker to draw more than

what stands to his credit, such ah advance is called an overdraft. ' it is an

automatic coverage by the bank of all checks presented against the firm'saccount, regardless of the account balance'. Interest is calculated and charged

only on the debit balances on daily product basis. Generally two type of

overdraft is exercised in the bank-

SOD (FO): It is allowed against financial obligation for promotion of economic

and

business activities.

SOD (GE): It is allowed to the traders for business promotion and economic

activities.

Cash Credit:Cash Credit is a continuous type of short term advance. 'Under this system, the

banker specifies a limit, called the cash credit limit, for each customer, up to

which the customer is permitted to borrow against the security of tangible assets

or guarantees.' Two types of cash credit are exercised in ABBL

a) Cash Credit (Hypothecation):

Hypothecation is a charge on company for a debt, but neither ownership nor

possession passes to the creditors. In hypothecation, both ownership and

possession remain under debtor. This type of credit is allowed to the traders and

industrial borrowers for promoting trade and commerce and industries. This

type of advance depends mainly upon the trustworthy of the party.

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AB Bank b) Cash Credit (Pledge):

In this case, possession of goods passes to the creditor or bank. It is allowed for

promoting trade, commerce and industries of the country against pledge of stock

in trade under Bank's control.

SMELoan:Considering the volume, role and contribution of the SMEs, in the last two

decades AB Bankhas been patronizing this sector by extending credit facilities

of different types and tenor. As of now 54% of the banks total loan portfolio is

segmented to the SMEs which deserve all out attention in our plans, projections

and forecasting.

As such the bank has emphasized on the following issues:

** To provide the best services to the SME sector

*5 To increase the SME portfolio of ABBL significantly

> To improve the quality of ABBL'sportfolioSME Sectors in which AB Bankhas participated so far:

*> Agro machinery

* Poultry

* Animal Feed

*> Dairy Product

* Fruit Preservation

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^ABBank

I* Hotel & Restaurants

> Garments Accessories

Leather products

: Plastic product Furniture : Wooden & Metal

Ink

: Paint

> Printing & Packaging

Wire & Cable

> Aluminum

> Cement and Lime Plaster

Clinics and Hospitals

Engineering & Scientific InstrumentsSME LOAN

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5.1) Internship Duties :

My Daily Activities in AB Bank Limited First day at office :

I have started my internship program in AB Bank Limited from March 03,2009.

First day I reached office at 8.45 a.m. At first I meet the Branch relationship

manager Chowdury A.N.M.M. Ali Beg .And after the request to sub managerMD. kharul Alam to introduced me with all of the officer staff. After

introducing events He placed me in Account opening department. At first day I

worked there till 5.30.

Working Hours ;

I worked there as like a permanent employee. Every one is suppose to be in the

office within 8.45 am. I have tried to maintain the time line. Though there is a

sign out time but most of the employee worked in office till 7.00 pm.

Working Activities :

In the day of my internship period I have performed the various types ofactivities & I believe this practical task help me in my near future. The task I

have done these are as bellow :

Checking customer database Checking cheque books Making cheque books

Adjust of debit & credit balance Bill voucher writing

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^ABBank

Update the register book

- Pay order writing

- Opening the customer accounts

- Prepare the L/C- Giving the payment of Western Union

- Posting the transaction in customer.

5.2) Learning Points :

Internship is the part of our Bachelor of Business Administration Program.

After completing my internship program I have learn something about the

overall banking system such as how to manage market, how to making

information, which factors influence the target customers, relation with

customers etc.

From the internship period I have learn how to manage customer, bankingservice, how to influence customer, how to manage an officer, how to match

with the new culture.

I was very interested how to manage customer & how to manage an office like

as function of a manager . I have progressed in understanding of my interested

matter . Now I will capture all the works, which is done by a manager.

Three month work with a bank is not sufficient for learning overall banking

system without any help of the manager or my supervisor & all officer staff.

They gave me to sufficient opportunity to work & help about these matters

which matters was very tough for me.

In my Business Administration Program theoretically I have learned how to

manage an office & their discipline & lastly I have learned through practically

how to manage an office & their work. Through practical knowledge I have

seen & worked the entire thing

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^ABBank

Update the register book

- Pay order writing

- Opening the customer accounts

- Prepare the L/C- Giving the payment of Western Union

- Posting the transaction in customer.

5.2) Learning Points :

Internship is the part of our Bachelor of Business Administration Program.

After completing my internship program I have learn something about the

overall banking system such as how to manage market, how to making

information, which factors influence the target customers, relation with

customers etc.

From the internship period I have learn how to manage customer, bankingservice, how to influence customer, how to manage an officer, how to match

with the new culture.

I was very interested how to manage customer & how to manage an office like

as function of a manager . I have progressed in understanding of my interested

matter . Now I will capture all the works, which is done by a manager.

Three month work with a bank is not sufficient for learning overall banking

system without any help of the manager or my supervisor & all officer staff.

They gave me to sufficient opportunity to work & help about these matters

which matters was very tough for me.

In my Business Administration Program theoretically I have learned how to

manage an office & their discipline & lastly I have learned through practically

how to manage an office & their work. Through practical knowledge I have

seen & worked the entire thing

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^ABBank

which was very much important to clearly understand managerial function . So I

can say this experience really increase my desire to become a manager.

Finally, the internship report also relate with my major field of study , because

which I have learned from our university some part of my learning is sharedthrough internship program & this share to build me & expert . So, now I am

expert in the field of how to manage customer , banking service , how to

influence customers , how to manage an office , how to match with a new

culture .

5.3) SWOT Analysis

SWOT Analysis provides an opinion & judgment whether an organization's

business condition is healthy or unhealthy.

5.3.1) STRENGTH:

> Strong Brand image of AB Bank Ltd > Good management system> The bank has earned customer loyalty as organizational loyalty. > ABBL is

always trying to add new & modern equipment > The top management

officials all have had reputed of banking experience, skill & proficiency.

5.3.2) WEAKNESS :

> Low pay structure than other commercial Banks

> A single counting machine

> A remarkable portion of the total human resources is inefficient

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^ABBank

> The Bank dose not have any Research & Development Division .

5.3.3) OPPORTUNITY :

> Potential & large market

> Available potential source of fund> Diversity in to related product

> They can also offer micro credit business for individual & small

business. > Many branches can be opened to research the banks services in

remote locations .

5.3.4) THREATS :

> Changing customer needs & tastes > Growing bargaining power of

customer > Recruitment process is threaten for the bank

> Local competitors can also capture a huge market share by offering similar

products & services provided by the bank .5.4) RECOMMENDATION;

Signature of witness on all-important documents should be obtained

For increasing more funds customer may by offered different types of prizes

The account -opening department needs skilled staffs for smooth working.

Their statement should be computerized which is cost effective &safe.

ABBL should reduce their interest rate on different credit scheme.

Cleanliness services should be proper & up-to-date.

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References:

Reports:

1 .General Banking Operation Manual (Bangladesh Bank) 2. Annual Report

(2007,2008) of ABBL

Internet:1 .www.google.com 2.www.abbank.com.bd

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Corporate Banking

At AB Bank we provide complete range of solutions to meet Corporate

Customers' requirement. Our Corporate Banking solutions include a broad

spectrum of products and services backed by proven, modern technologies.

Corporate LendingOur specialist teams offer a comprehensive service providing finance to large

and medium-sized businesses based in Bangladesh. For more information as to

how we might best meet your corporate debt needs, please contact us at our

Corporate Head Office.

Structured Finance

We have a specialist Structured Finance Team who arrange and underwrite

finance solutions including Debt and Equity Syndication for financial sponsors,

management teams and corporates. Also we provide corporate advisory

services.We aim to provide tailored financing solutions with a dedicated team who can

rapidly respond to client needs. Following are some of the products and

financial tools of Corporate Banking:

Project Finance . .

Working Capital Finance

Trade Finance

Cash Management

Syndicated Finance, both onshore & off-shore

Equity Finance, both onshore & off-shore ' .

Corporate Advisory Services . . '


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SME Banking

SMELoan

Considering the volume, role and contribution of the SMEs, in the last two

decades AB Bank has been patronizing this sector by extending credit facilities

of different types and tenor. As of now 54% of the bank's total loan portfolio issegmented to the SMEs which deserve all out attention in our plans, projections

and forecasting..


To provide the best services to the SME sector ' : '

To increase the SME portfolio of ABBL significantly

To improve the quality of ABBL's portfolio

SME Sectors in which AB Bank has participated so far:

Agro machinery

Poultry Animal Feed

Dairy Product ' ; " ' '.'

:',

Fruit Preservation :

Hotel & Restaurants

Garments Accessories

Leather products

Plastic product

Furniture : Wooden & Metal

Ink

Paint

Printing & Packaging .'" . . , y ...'.' ...

Wire & Cable

Aluminum

Cement and Lime Plaster


Engineering & Scientific Instruments


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SME Banking

SMELoan

Considering the volume, role and contribution of the SMEs, in the last two

decades AB Bank has been patronizing this sector by extending credit facilities

of different types and tenor. As of now 54% of the bank's total loan portfolio issegmented to the SMEs which deserve all out attention in our plans, projections

and forecasting..


To provide the best services to the SME sector ' : '

To increase the SME portfolio of ABBL significantly

To improve the quality of ABBL's portfolio

SME Sectors in which AB Bank has participated so far:

Agro machinery

Poultry Animal Feed

Dairy Product ' ; " ' '.'

:',

Fruit Preservation :

Hotel & Restaurants

Garments Accessories

Leather products

Plastic product

Furniture : Wooden & Metal

Ink

Paint

Printing & Packaging .'" . . , y ...'.' ...

Wire & Cable

Aluminum

Cement and Lime Plaster


Engineering & Scientific Instruments


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Islami Banking

To provide the Islamic banking services in accordance with the principles of

Islamic Shariah, AB Bank has established Islamic Banking Wing and started its

functioning by opening full-fledged Islamic banking branch on 23.12.2004. The

branch is known as AB Bank Islami Banking Branch, Kakrail, and is situated at82, Kakraii, Ramna, Dhaka. Prominent Islami Banker Mr. M. Azizul Huq has

joined the Bank as its Islamic Banking Consultant. A dedicated team of

experienced Islamic bankers is working under his active guidance both at head

office and branch level. A competent Shariah Council consisting of Islamic

scholars, Ulema, Fukaha and Islamic bankers headed by Mr. Shah Abdul

Hannan, a prominent Islamic scholar and former Secretary, Government of

Bangladesh has also been formed to guide the Islamic banking affairs. Board of

directors as well as management of the bank are very much interested to

promote Islamic banking system in the bank aiming at opening more Islamicbranches in the near future. AB Bank has already obtained membership of

Islamic Banks Consultative Forum (IBCF) and Central Shariah Board for

Islamic Banks of Bangladesh.

The goals and objectives of Islamic banking Wing are as under:

To facilitate the Islamic banking system in the country

To create new entrepreneurs and to arrange required finance for them

To play effective role for socio economic development of the country

To give assistance in launching welfare oriented economic system under

Islamic values

Under this wing AB Bank extends the following Islamic banking services:

Deposit services

Investment services

Under Deposit services the following services are being rendered:

Mudaraba Savings Account

Mudaraba Short Noticed Account '

.

Mudaraba Term Deposit Account (with different terms)

Mudaraba Monthly Profit Account

Al-Wadiah Current Deposit Account . .. .

Mudaraba Deposit Pension Scheme

Besides Mudaraba Hajj Deposit Scheme and some other schemes are under

process.

Investment Services

AB Bank Islmic Banking Wing provides investment facilities for project

finance, working capital finance, SME finance, consumer / retail baking finance

etc. under following modes: .''.'

Hire-Purchase under Shirkatul Melk (HPSM): Under this mode the Bankand the client procure asset such as machinery, land , car etc. on equity


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participation basis. The Bank rents out its portion of assets to the client for a

certain period. The client pays the rental with a part of principal amount on

monthly / quarterly basis. The client gets its proportionate ownership with the

payment of monthly / quarterly installments. On maturity, total ownership of the

assets automatically goes to the client as and when final payment of the accountis made.

Ijara or Leasing: It is more or less like the HPSM. In this case equity

participation may or may not exist. Ownership of the asset is not automatically

transferred to the client with the payments of installments. On maturity, the

bank transfers the ownership to the client on payment of certain transfer fees.

Bai-Muajjal / Bai-Murabaha: These modes are applicable for working

capital finance. Under these schemes bank purchases goods / raw materials as

per requirement of the client. In case of Bai-Muajjal bank receives the sales

proceed on deferred payment basis. On the other hand in case of Bai-MurabahaBank receives the sale price at the time of delivery of the goods / raw materials.

Before handing over the goods / raw materials the bank generally keeps the

same in its custody under pledge.

Musharaka : Under this mode the Bank and clients jointly participate in a

project, in a scheme or project. Profit is shared between the Bank & the

concerned client as per pre-agreed ratio. On the other hand loss is shared

according to capital ratio.

Mudaraba: Under this mode bank finances the scheme as a Shaheb-AI-

Maal (owner of the capital). Profit is shared between the two sides as per pre-

agreed ratio.Sector of Investment:

Islamic Banking Wing of the bank finances in all sectors i.e., Industry, business,

Agriculture, Real Estate etc. if purpose of the investment is permissible under

Islamic Shariah.


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Limit of Investment:

Investment is offered to the extent of single borrower exposure limit as fixed by

the Bangladesh Bank from time to time.

Foreign Trade:

Islamic Banking Wing provides the following services at its foreign trade desks:.

Opening of LCs

Post -Import Finance

Export bill purchase and negotiation

Pre-shipment financing etc.

AB Bank Islamic Banking Wing has been continuously trying to expand it's

service horizon keeping the necessity of valued clients in view and upholding

the principle of Islamic Shariah.


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Deposit Scheme

New Products

May 29, 2008 Ogrim Munafa Patra

Let your money grow with us. AB Bank Ogrim Munafa Patra (OMP) allows

you to maximise growth potential through this unique certificate.How does the OMP work?

A depositor may purchase an OMP by depositing the discounted value of the

principal sum: For example, for purchasing a Receipt for Tk. 100,000 with a

maturity of 12 months (at 12% interest rate) the depositor will have to pay Tk

89,286/- for purchasing the OMP certificate.

Who can open an OMP?

Any individual, business organization and institution.

How much does one have to invest? Simply a minimum of Tk 25,0007-

What is the tenure of the OMPs?OMPs shall be available for three, six and twelve months maturity tenures.

What is the rate of interest ? : . . ; . 12 percent. Govt tax and

duties are applicable.

Can one obtain loan against OMP?

Yes. Loan/Overdraft facility up to 90% of the deposited amount will be

available. '.

How does, one approach AB Bank to purchase OMP?

Loan facilities will be available at any of the 73 branches of AB Bank. For

details, please contact your nearest AB Bank branch.

I Ogrim Mimsfo Pjtra IMay 29, 2008 '.'.:, Be a millionaire in 3 years

The dream of becoming a millionaire is no longer a distant one. You can

actually become a millionaire, that too within a space of three to six years, by

opening an AB Bank Millionaire Scheme Account ( MSA).

How does this MSA work?

Monthly deposit of instalments.

At the end of the respective term, total savings with interest, after deduction of

Govt tax and duties, will amount to One million Taka.

Who can open an MSA?Any individual, business organization or institution can open an MSA. ,

What is the tenure of the MSA? ' MSAs can be opened for three, four, five, or

six-year terms.

What is the annual interest rate for MSA?

-millionaire in 3 years

*

"

Interest Rate;-


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12.00% 12.00% 11.50% 11.50%

Tenor (Years)

3

4 ./

5;6

Monthly Savings

Gross Return

Income Tax (Currently 10%)

23.602/

-

1, 016,71 17- 16,7047-

16,7667

-

1,021,7487- 21,6987-

12,8367

-

1,025,5867- 25,5437-

10,1387

-

:

1,030,0847- ..

'. ,

:, 30,01

51-

Net Return

1,000,007/-i,000,0507- ; 1,000,044/-1,000,070/-

Are loan facilities available against MSA?


available.


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Troimashik Munafa Hishab

It is now time to make your cash work for you. At AB Bank, our attractive

interest rates let you maximise every ft r+ i Ra "

Taka you put in. So, what are you waiting for? We invite you to participate in

our Troimashik Munafa Hishab Quarterly Basis(TMH) and optimize your cash. Deposit Scheme

How does TMH work?

It has the character of a fixed deposit account.

Who can open a TMH?

Any individual, business organization or institution can open a TMH.

What is the tenure of the TMH? Three years

What is the annual rate of interest of TMH?

Currently 12 percent. Govt tax and duties are applicable.

At what frequency interest is given?Interest will be paid every three months from the date of opening of the account.

. innn.mfciirr

How much does one have to invest?

Simply a minimum of Tk 25,000.00. There is no upper limit!

Is TMH prematurely redeemable ?

Yes. If withdrawn prematurely the following will be applicable:

Time of withdrawal Rate of interest

Within six months Nil

Between six and twelve months . Prevailing Savings Bank Rate

..

Second Year 9%

..:/- '.''-../..',,

ThirdYear 10%

\/:;;:, /..:'':; -"" -''.;

Is there a need to manage quarterly interest coupons?

No. Interest will be credited automatically to the designated account.

Can one obtain a loan against TMH?


available.

a report onab bank limited

Documents