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Chapter-1 Introduction1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 History of the Organization Objectives o the Organization Functions of the Organization Role of the Organization in the Eco. Dev. of Bangladesh Organogram of the organization Mission of the Organization Vision of the Organization Agrani Bank Limited at a Glance

CHAPTER 1

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

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History of the Organization

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

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

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

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

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

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

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

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

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

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

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

1.3.7 Special Activities of Agrani Bank LimitedWithout the above activities, there are three special activities that were conducted by the bank during the year 2007. Those are as follows: The gross and net amount of loans and advances of the bank by the end of 2007 stood at Tk.83.58 Billion. The bank gave loans to public and private sectors amounting to gross loans and advances at the end of 2007 Tk.995.16crore and Tk.5750.91crore respectively. The advance under small and cottage industries sector by the end of 2007 stood at Tk.373.81crore as against Tk.368.01crore. The bank had a considerable involvement in the jute sector under jute trade and jute industries. Total advances in the jute sector stood at Tk.718.61crore in 2007. The investment in this sector was 11% of the total loan and advances.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SL No 1 2 3 4 5 6 7 8 9

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

Exhibit:1, On-Line Branches of Agrani Bank Limited. ATMAgrani Bank Limited introduced ATM Card facility, which is, known as E-cash card. Under this system, card holder can get round-the clock services of two kinds -cash withdrawal and utility bills payment facilities. There are nine members: banks sharing 18 ATMs located at different cities of the country.

List of E-cash ATMs Shared by Agrani Bank Limited:SL No 1 Bank /Complex Agrani Bank Ltd. Jatiya Press Club Br. Location Dhaka

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

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

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

Exhibit:2, ATM Booth Shared with Agrani Bank Limited.SWIFT Agrani Bank Limited a member of worldwide SWIFT services, has installed it at its International Division and 14 other big branches. Our Information Technology Division provides all sorts of technical support under SWIFT services.

List of SWIFT in Agrani Bank Limited: SL No.1 2 3 4 5 6 7 8 9 10 11

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

SWIFT CodeAGBKBDDHX015 AGBKBDDHX004 AGBKBDDHX006 AGBKBDDH AGBKBDDHX010 AGBKBDDHX017 AGBKBDDHX021 AGBKBDDHX003 AGBKBDDHX001 AGBKBDDHX005 AGBKBDDHX027

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

Exhibit:3, SWIFT in Agrani Bank Limited. WEBSITE:Agrani Bank Limited has a website packed with updated information about the Bank. Information Technology Division maintains the website in conjugation with M/S. Corona IT Ltd. The Website address is: www.agranibank.org.

READY CASH A debit card is introduced in collaboration with American International (Bangladesh) Ltd. Under the system, the cardholder may go shopping at different department stores, hotels, restaurants and shopping malls. Any customer may now pay his/her utility bills like electricity, gas, water, telephone etc. by using this card. Agrani Bank Limited as a leading government-owned Bank, has to provide a plethora of services for the benefit of its clients at a low cost compared to other private Banks.

Inland RemittanceBank offers various remittance services to its valued customers with nominal charges: Collection of various bills, Remittance, Purchase bill/cheque, bank guarantee. Agrani Bank Limited , as a nationalized commercial bank, has to play a pivotal role in translating the government's development plans in terms of growth in industrial, commercial and agricultural sectors in Bangladesh. Accordingly the Bank has formulated its Credit Policy under the guidelines of Bangladesh Bank-the Central Bank of Bangladesh.

The bank provides credit facilities in five broad areas:

General Credit

Page 15 of 81 Agrani Bank Limited delivers credit facilities to any businessman or trader engaged in any commercial activity having productive purposes that should contribute to economic growth of the country. Loan pricing system is customer friendly and prime customers enjoy rebates in repayment of loans. All nonresident Bangladesh nationals and persons of Bangladesh origin including those having dual nationality and ordinarily residing abroad may maintain interest bearing Time Deposit Accounts named "Nonresident Foreign Currency Deposit (NFCD) Accounts" with any Authorized Dealer (AD) Branch of Agrani Bank Limited . Bangladesh nationals serving with Embassies/High Commissions of Bangladesh in Foreign countries as also the officers/staff of the Government/Semi Government Departments, nationalized banks and employees of corporate bodies posted abroad or deputed with International and Regional agencies like IMF, World Bank, IDB, and ADB etc. during their assignments abroad may open such accounts with Agrani Bank Limited . Crew members of the Bangladeshi shipping companies are not entitled to open such accounts, but shore staff posted abroad may open such accounts. Accounts may also be opened with funds transferred from existing foreign currency accounts maintain by the wage earners with any AD Branch of Agrani Bank Limited . The accounts are in the nature of Term Deposits maturing after one month, three months, six months and one year. The accounts may be maintained in US Dollar, Pound Sterling, Deutsche Mark or Japanese Yen: initially with minimum amount of US$1000 or Pound Sterling 500 or equivalent. Account may be opened against remittances in other convertible currencies after conversion of those into US Dollar, Pound Sterling, Deutsche Mark or Japanese Yen. These Accounts may be maintained as long as the Account Holders desire. Eligible persons are also allowed to open such Accounts within six months of their return to Bangladesh. Eligible Bangladesh nationals may send applications along with a set of specimen signatures of the opener of the account to any AD Branch of Agrani Bank Limited in Bangladesh duly verified by any Bangladesh Mission abroad, or a reputable Bank or any other person known to the AD Branch of Agrani Bank Limited in Bangladesh. The Application Forms may be procured from Bangladesh Missions Abroad and from any AD Branch of Agrani Bank Limited in Bangladesh. No set of specimen signatures will be required to be enclosed with the application form if the application is submitted to an AD with whom the applicant has already been holding a Foreign Currency Account. In such a

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

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

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

Terms:For Five years

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

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

Repatriation in Foreign Currency:Purchaser of WEDB can repatriate the principal amount of the bond in foreign currency

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

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Foreign RemittanceMillions of Bangladeshi nationals are employed in a variety of professions in reputed organizations all over the world. Their expertise and professional acumen have earned Bangladesh not only fame and prestige but also hard currency strengthening the backbone of our economy. Bangladeshi nationals living abroad are to remit their hard earned savings through banking channels, but not all of them are aware of friendly banking channels they may send their money through. Agrani Bank Limited , a leader in Foreign Remittance business, is equipped with all modern tools like SWIFT (Society for World-Wide Inter-Bank Financial Telecommunications), Telex, Internet, fax and other Telecommunication devices to ensure quick and safe transfer of foreign remittance to the beneficiaries anywhere in Bangladesh. The Bank has declared to general public that it would take a maximum period of 72 hours for crediting incoming foreign remittance to the beneficiaries' accounts with any Bank, however remote the Bank Branch is. Agrani Bank Limited having established contractual relationship with about 400 Overseas Correspondents and 19 Exchange Houses all over the world, is ready to cater to the banking needs of foreigners as well as Bangladeshis living abroad as far as incoming remittance is concerned. To ensure quick remittance inflow into Bangladesh Agrani Bank Limited has also made Special Arrangement with Citi Bank NA. Under the arrangement, Citi bank N.A. and its correspondents, subsidiaries and affiliates outside Bangladesh will collect remittances and will issue Drafts on designated branches of Agrani Bank Limited Designated Agrani Bank Limited Branches shall honor /execute payments of all the Drafts instantly within the stipulated time of 72 hours. With a view to serving a huge number of Bangladeshi guest workers in Singapore, Agrani Bank Limited have taken a bold step to open in Singapore Agrani Exchange House Pte Ltd, a subsidiary company fully owned by Agrani Bank Limited which started its operation since 8th February, 2002. About 14 million Singapore Dollar, which is the accumulated amount of hundreds of small remittances of Bangladeshi guest workers in Singapore, has

Page 19 of 81 been remitted through Agrani Exchange House to Bangladesh within a period of only seven months since its inception. Bangladesh government has put emphasis on increasing remittance inflow and is determined to deter money transfer through non-banking channels. Anyone involved in money laundering activity in any form like "Hoondi" business are sure to be awarded heavy punishment, if found guilty under "Money Laundering Prevention Act, 2002" passed recently by Bangladesh Government. We request all concerned, especially our Bangladeshi brothers and sisters, to send their money through banking channels and help Bangladesh develop with their hard earned foreign currency. Agrani Bank Limited has been maintaining around 903 number of correspondent including Exchange Houses located in different parts of the world to facilitate our international trade and other transactions of trade and remittances globally. The expatiate Bangladesh who are working abroad, can easily take the opportunity to remit their hard earned foreign exchange to their respective beneficiaries utilizing our correspondent services.

Authorized Dealer (AD) Branches of Agrani BankAgrani Bank Limited has been maintaining around 903 number of correspondent including Exchange Houses located in different parts of the world to facilitate our international trade and other transactions of trade and remittances globally. The expatiate Bangladesh who are working abroad, can easily take the opportunity to remit their hard earned foreign exchange to their respective beneficiary utilizing our correspondent services. The following are the major correspondent Bank located in deferent parts of the world.

Agency ServicesAgrani Bank Limited , being a nationalized Bank, has both commercial commitment to its clients and societal commitment to the nation. Besides catering service to its clients at nominal fees/charges the Bank has to provide a plethora of services, free of charges, in respect of transferring money to different benevolent organizations and groups of professionals in far flung areas through its branches in urban and real areas all over Bangladesh. Here below are a few of such services Agrani Bank Limited provides:

Page 20 of 81 Collection of Utility bills:

Telephone bills of T &T Authority without service charges Grameen Phone bills of Grameen Phone Ltd. with service charge & other charges Electric bill of REB without service charges Electric bills of DESA without service charges Electric bill of PDB without service charges Electric bill of DESCO without service charges Bills of Railways without service charges Gas bill of Titas Gas, T& D Co. ltd without service charges Gas bill of Bakhrabad Gas Co. ltd without service charges

Sale/Purchase of Prize bonds Payment of Army/civil pension Payment of non-government primary /secondary school/college /Madrasha teachers benefit (government portion Payment of Government primary school teachers salary Maintain of BADC disbursement account with 200 branches Payment of stipend to Shishu Kallyan Trust in urban areas. Payment of Honorarium to freedom fighters. Payment of stipend for female students of secondary and higher secondary institutions Payment of Govt. allowances to Bayaska, Bidava and Dostho Mohila. Payment of stipend to primary students Payment of Food Procurement bills. Le/encashment of Saving Certificate LOCKER SERVICE: For safekeeping of customers' valuables like important documents and goods like jewelries and gold ornaments, Agrani Locker Service is available in most of the Branches in urban areas. EVENING BANKING SERVICES: "Evening Banking", a unique service of Agrani Bank Limited , only for receiving Cash and Documents beyond transaction hours till 6 o'clock in the evening, is available in about 200

Page 21 of 81 important Branches of Agrani Bank Limited . The service is attractive for those, like shopkeepers, who accumulate cash as sales proceeds in the afternoon when counters of Bank branches usually remain closed. DEPOSITS Agrani Bank Limited offers to their clients a variety of Deposit Schemes with personalized services at competitive rates of interest. Any Bangladeshi citizen can open his/her account for any deposit scheme at any of its Branches strategically located throughout Bangladesh. The Bank with its huge network of 866 branches garners savings from both the rich and the poor in urban as well as rural areas. Even a poor farmer in a remote village, with his meager annual income, feels secure to safe keep his minuscule savings in Agrani Bank Limited Why? Because Agrani Bank Limited , as a state-owned bank, has a long heritage of trust and professional commitment. Besides Savings Accounts Agrani Bank Limited offers personalized services to businessmen who maintain Current Accounts with any Branch. Though a Current Account does not earn any interest the Account Holder enjoys a lot of benefits. Only Current Account Holders can apply for any loan offered by Agrani Bank Limited , if the Account Holder has excellent track records in banking as well as business arenas. Current Account Holder can draw money from his/her account at any frequency. ATM CARD Account Holders of Agrani Bank Limited can now avoid the risk of carrying cash by subscribing to our Automated Teller Machine (ATM) Service. ATM Card Holders can draw cash from any ATM location and also enjoy other services like paying a variety utility bill like those of BTTB, AKTEL and Grameen Phone through ATM service. The service is open round the clock in all the days including holidays. The ATM cardholder can enquire about the balance of his/her ATM Account from any outlet at any moment. Cash withdrawal of TK. 1,000, TK 2,000, TK 3000 or TK 5000 can be made from ATMs. Maximum cash withdrawal limit is TK 5,000 at a time and TK 20,000 in a day. Maximum 10 transactions can be made in a day.

On Line Procedure

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

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

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

Account Holders of Agrani Bank Limited can now avoid the risk of carrying cash by subscribing to our Automated Teller Machine (ATM) Service. ATM Card Holders can draw cash from any ATM location and also enjoy other services like paying variety utility bills like those of BTTB, AKTEL and Grameen Phone through ATM service. The service is open round the clock in all the days including holidays. The ATM cardholder can enquire about the balance of his/her ATM Account from any outlet at any moment. Cash withdrawal of TK. 1,000, TK 2,000, TK 3000 or TK 5000 can be made from ATMs. Maximum cash withdrawal limit is TK 5,000 at a time and TK 20,000 in a day. Maximum 10 transactions can be made in a day.

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Deposit SchemesAgrani Bank Limited offers to their clients a variety of Deposit Schemes with personalized services at competitive rates of interest. Any Bangladeshi citizen can open his/her account for any deposit scheme at any of its Branches strategically located throughout Bangladesh. The Bank with its huge network of 891 branches garners savings from both the rich and the poor in urban as well as rural areas. Even a poor farmer in a remote village, with his meager annual income, feels secure to safekeeping his minuscule savings in Agrani Bank Limited Why? Because Agrani Bank Limited as a state-owned bank, has a long heritage of trust and professional commitment. Besides Savings Accounts Agrani Bank Limited offers personalized services to

businessmen who maintain Current Accounts with any Branch. Though a Current Account does not earn any interest the Account Holder enjoys a lot of benefits. Only Current Account Holders can apply for any loan offered by Agrani Bank Limited , if the Account Holder has excellent track records in banking as well as business arenas. Current Account Holder can draw money from his/her account at any frequency.

AdvancesAgrani Bank Limited , as a nationalized commercial bank, has to play a pivotal role in translating the government's development plans in terms of growth in industrial, commercial and agricultural sectors in Bangladesh. Accordingly the Bank has formulated its Credit Policy under the guidelines of Bangladesh Bank-the Central Bank of Bangladesh. The bank provides credit facilities in five broad areas:

General CreditAgrani Bank Limited delivers credit facilities to any businessman or trader engaged in any commercial activity having productive purposes that should contribute to economic growth of the country. Loan pricing system is customer friendly and prime customers enjoy rebates in repayment of loans.

Industrial Credit

Page 25 of 81 The Bank extends loans to big entrepreneurs and also to small and medium industrial ventures to boost up overall investment in the industrial sector of the country. The Bank offers financing on easy terms to the following "Thrust Sectors":

Rural CreditSince nationalization in 1972 and the Bank's involvement in financing agricultural sector in 1977, Agrani Bank Limited has been reinforcing efforts of the government to meet its strategic objective of increasing production, output and employment through undertaking different agricultural credit programmers / projects.

Some of these programmers / projects are outlined below for understanding the role of Agrani Bank Limited in increasing agricultural production & poverty alleviations. 1. Crop loan programmed:To help increase food grain and other crop production of the country by way of providing credit to farmers, this program was under taken in 1977. Up to June/2008, an amount of TK.768.95 core has been disbursed in favor of 21, 65,447 borrowers. Recovery rate is 73% (cumulative).

2. Crop Diversification Project:This Program was undertaken to achieve self-dependency on food production and to fulfill the demand of balanced diet of our people. The project is running with the help of Bangladesh, Canada and Netherlands Government. An amount of TK. 8.30 core has been disbursed among 8771 borrowers up to June, 2008. Cumulative recovery rate is 63%.

3. Shrimp Culture Programmed (General):This credit program was introduced by the Bank in 1980. This particular credit program is designed to increase shrimp production by providing loans to shrimp cultivators in Cox's Bazar, Khulna, Satkhira, and Bagerhat. Disbursement up to June, 2008 is Tk. 73.43 core. Among 5000 borrowers. Cumulative recovery rate is 78%.

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4. Semi -intensive shrimp culture programmed:For production of more shrimp by using modern technology, semi intensive shrimp culture program was introduced in 1993 with the aim of gaining more foreign currency. In initial phase credit facilities were extended for shrimp production only but subsequently its coverage was extended to the fresh water areas of the country. This loan is treated as industrial credit and all related facilities are enjoyed by the borrowers. Up to June, 2008 an amount of Tk. 7.80 crore has been disbursed among 213 loaners. Cumulative recovery rate is 38%.

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

6. Credit for Irrigation Equipment:Since 1977, the Bank is providing credit to the farmers to purchase irrigation equipment (DTW, STW, Rower pump, Treadle pump etc) in order to help increase crop production by utilizing both surface and underground water through irrigation. An amount of Tk. 13.14 crore has been disbursed to 5,373 borrowers up to June, 2008. Cumulative recovery rate is 68%.

7. Agricultural Equipment Project:This program was undertaken in 1989-90 to increase food production by using modern technology. An Individual or a group of farmers can buy tractor/power tiller under this loan program. An amount of Tk. 2.69 crore has been disbursed to 462 borrowers up to June 2008. Cumulative recovery rate is 64%.

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

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

10. Swanirvar Credit Programme:This Programmed was launched during 1979 in association with Swanirvar Bangladesh under Dheki Loan Programme initiate to help distress village women. Its objective is to help initiate income generating activities for attaining self-reliance as well as employment generation in order to improve standards of living of rural poor. It finances cropping, small business, poultry, rice processing and puffing etc. Besides, it helps creating awareness about literacy and family planning, encourages group meeting and group savings and helps in loan repayment. This is a one year credit facility for Taka 5,000/- with 11% interest and being implemented in 72 thanas through 122 branches. Loans are disbursed through groups formed by Swanirvar Bangladesh. 163771 borrowers have availed of this credit facility amounting to Tk. 37.25 crore upto June, 2002 Recovery rate is 69% (cumulative).

11. Rural Finance Project (RFP):This Project was undertaken in 1979 by the Bank in collaboration with Bangladesh Bank and USAID, this program extends credit facilities to small and landless farmers for various income generating activities in rural areas. Upto June, 2008 an amount of Tk. 26.08 crore has been disbursed to 70520 borrowers. Recovery rate is 84% (cumulative).

12. Shoshya Gudam Rin Prokalpa :This program was undertaken by the Bank in 1988. The main purpose of the project is to assist farmers in retaining crops stored in go down as pledged goods during peak season when prices of the crops remain lower. Upto June, 2008 an amount of Tk.3.33 crore has been disbursed to 14442 borrowers. The rate of interest under this scheme is 12% and the maximum loan repayment period is 9 months. Recovery rate is 100% (cumulative).

13. Small Enterprises Development Project (SEDP, BGD-041):This project was undertaken by the Bank in May 1995 in association with NORAD to extend credit facilities in 40 thanas in greater Faridpur and Mymensingh Districts for establishment of micro enterprises. Under the project, 50% of the credit fund is being

Page 28 of 81 provided by NORAD and 50% by the Bank. The objective is to improve socio economic conditions of the project areas through creating employment opportunities. A wide range of micro-enterprises are being financed under this project such as rice mill, oil mill, food processing unit, flour mill, nursery, repairing workshop, hatchery, fishery, weaving, handicrafts etc. So far, 26505 entrepreneurs have received credit under this project amounting to Tk. 91.98 crore upto June, 2008. Recovery rate is 92% (cumulative).

14. Self Employment Programme for the Unemployed Youth:Under this programme unemployed youths, trained in different crafts by the Department of Youth Development /BMDC or other organizations are provided with loans to become self employed in their respective field of expertise. Upto June, 2002 an amount of Tk. 2.17 crore has been disbursed among 1362 borrowers. Cumulative recovery rate is 64%.

15. Financing NGOs for On-lending to rural poor:Agrani Bank Limited has pioneered in extending loans to NGOs for on-lending to groups of rural poor for various income generating activities. The NGOs which are in shortage of credit fund may avail of loan facilities at an interest rate of 11%. Upto December, 2001 an amount of Tk.3.39 crore has been disbursed to 4 NGOs. Recovery rate is 87% (cumulative).

16. Credit for Rural Transport:This programme was introduced in 1981. Main purpose of the project is to purchase and made different vehicles used as principal mode of transport in rural areas, such as Bullock/ Buffalo carts, Rickshaw-Van, Boat etc. A total loan of Tk.2.08 crore has been disbursed among 2322 lonees under this programme upto June, 2008. The rate of interest under this scheme is 11% and the maximum loan repayment period is 3 years. Recovery rate is 75% (cumulative). 17. Bank loan programme in small scale poultry farms: With a view to produce ducks & chickens to a great extent in our country, this programme has been introduced in 1990. Mainly loans are disbursed under this programme to those persons who have been trained up in farming centres conducted by livestock development complex. Upto June, 2008 an amount of Tk. 0.27 crore has been disbursed to 126 borrowers. Recovery rate is 70% (cumulative).

18. Khudra Uddyog Prakolpo :

Page 29 of 81 This project is undertaken by the Bank in June'97 as its own program. The main objective of the project is to establish small scale industries, facilitate employment opportunities for the unemployed by engaging them in income generating activities. Groups consisting of five members of same mentality and locality will be considered for loan under this program. Yearly income of the group members should be less than Tk 30.000/=. Field assistants will identify the target group and will provide training. Maximum loan ceiling is Tk. 80,000/=. No collateral is required for loan amounting to Tk. 50,000/=. Equity participation is 10% for each loan. A risk fund is to be formed by deducting / depositing 10% of the loan amount. Loan upto Tk. 25,000 can be sanctioned by branch manager and above Tk. 25,000 can be sanctioned by the zonal head. The rate of interest under this scheme is 13% and the maximum loan repayment period is 3 years. An amount of Tk.3.00 crore has been disbursed upto June, 2002 among 2263 borrowers. Recovery rate is 92% (cumulative).

19. Agro-based Industrial Loan:Agro-based industrial establishments are playing a pivotal role with a view to recouping the shortfall of protein- related foods as well as promoting the production of milk and baby foods. Hopefully, the setting up of these industrial establishments has at once paved the way for caring huge foreign Exchange to a substantiate extent. The Government has emphasized the need for establishing agro-based industry. Under this sector credit is being disbursed to Fisheries financing, Semi intensive shrimp cultures shrimp - carp hatchery and nursery Dairy, Poultry, such & programs. A total amount of loan Tk 27.89 crore has been disbursed upto June, 2008. Cumulative recovery rate is 39%.

20. Special Micro- Credit Programme (SMCP):Agrani Bank Limited has undertaken a Special Micro-Credit Programme (SMCP) to finance in small farm and other income generating activities with a view to engaging unemployed youths, distressed women and landless rural poor through extending short and medium term credit. The main purpose of the program is to increase income provide nutrition to the target group and to prevent unemployment. A wide range of activities are involved under this program viz. Mini dairy , beef fattening, poultry, handicraft , tailoring, fishery, nursery , grocery, small cottage industries etc. Loan unto Tk.50,000/- is collateral free. Disbursement of loan may be made to the borrowers on individual as well as group basis. There are provisions to involve NGOs for group development and loan recovery. For

Page 30 of 81 this purpose service charge and prizes are allowed to the NGOs concern. Bank officials also will get prizes for loan disbursement and loan recovery. This program has been started from 2000 - 2001 financial years. So far an amount of Tk. 4.13 crore has been disbursed among 2909 lonees upto June, 2008 Cumulative recovery rate is 93%.

21. Goat rearing Programme for poverty alleviation.As per the Instruction of the Honorable Prime Minister, Peoples Republic of Bangladesh this Credit programme has been taken in 2001-2002 Financial year by this Bank to remove the poverty of poor people, unemployment problem and earned foreign currencies. Under this credit programme unemployed youths, those have got training under the Fisheries and Livestock Ministry will get the loan as priority basis. This programme has to b e implemented by the 118 branches of 50 Upa-Zillas in 25 districts. The rate of interest of this programme is 10%. Under this credit programme the leaned who will be able to pay their dues in time, will get 2% rebate facilities on the charged interest. Concern Upa-Zillas Committee will select borrower and fixed up the loan amount to each borrower. The ceiling of the loan under this credit programme is Tk. 30,000/- to 75,000/- ( not over Tk. 1,500/per goat) The period of loan is 3 years with 1 year grace time and loan should be repaid by the borrowers with four half yearly installment. Under this Programme Agrani Bank Limited his disbursed Tk. 9.00 (Nine) lac to the 34 loanees as on 31/07/02. As per the latest instruction of the Government, this programme will be implemented by the branches of this Bank all over the country.

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

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

23. Employment Generation Project for the Rural PoorThe Employment Generation Project for the Rural Poor (EGPRP) came into operation upon signing of a Loan Agreement (IFAD Loan#378-BD) in 1995. The Project was designed to reinforce the efforts of the Government of Bangladesh (GOB) to meet its strategic objectives of increasing output and employment through nationwide development of small enterprises, to which it accords high priority. The project's goal is to create a productive micro-enterprise sub-sector providing profitable self-employment for rural people, supported by public and private sector structures and processes which lead to a favorable climate for increasing investment in, and improving management of, micro enterprises. The project is to contribute to the goal through four objectives:

a) To establish 9,500 potentially, technically and financially viable micro-enterprises in the hands of rural family entrepreneurs, employing about 70,000 killed and unskilled laborers b) To establish within Agrani Bank Limited an efficient and sustainable programmed of services which meet steeds of its clients and facilitates the application of local financial resources for investment in micro-enterprises. c) To establish private sector financial intermediaries and advisory services to develop the market for credit among microentrepreneurs and to assist them to identity, plan, finance and operate micro-enterprises d) To develop replicable models of micro-enterprises which can be disseminated throughout Bangladesh.

Loan RepaymentRepayment terms of all loans are flexible in term of practical cash flow situation. The Credit Retailers, however, may apply their own terms and conditions for realizing loans from the ultimate borrowers. Loan SupervisionAs loan sanctioning authority, under this Project, is delegated to the Bank Branch and Zonal levels, the concerned Bankers supervise performance of each and every loan case and advise the borrowers on proper management of cash flow and repayment of Loans. The Bankers also assist in establishing linkages with

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

Progress of the Project

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

Export FinanceTo boost up country's Export, Agrani Bank Limited has been providing different kinds of assistance and incentive to the exporters. Some of which are: *Pre-Shipment and Post-Shipment Finance. * Ck-to-Back L/C facility under bonded Warehouse system. * Sight L/C under Export Development Fund (EDF). * Interest bearing and non-interest bearing Exporter's retention Quota A/C. * Export Incentive Program. * Financing industries of 100% foreign investment or of Joint Venture at Export Processing Zones * Obtaining EEF (Equity & Entrepreneurship Fund) from Government through Bangladesh Bank for building up Entrepreneurs' Equity. * Providing services to the exporters by the Bank's own logistical supports like SWIFT, Reuters Service, Internet, Fax etc. * Consultancy and Advisory Services by an expert group of officials.

Special credit programs for IT related export business:

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Checklist of requirements:A. A Firm or Company having valid ERC, necessary infra-structural and technical facilities and sufficient skilled manpower related to computer. B. Member of BASIS or BCS. C. Having Computer Literacy or related professional background. D. Preference to the firm/company having prior experience. E. Satisfactory performance Certificate/Acceptance Letter from /Counterpart abroad. F. Valid export Orders are in hand.

ExportThe Export business of Agrani Bank Limited during the year 2007 amounted to TK.53.99 Billion and the rate of growth was 21% over that of the previous year.

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

Facilities Offered:Opening of L/C at competitive/reasonable margin and at confessional commissions & rates of interests with interest rebate facilities on import finance for the prime customers the import business of Agrani Bank Limited during the year 2001 amounted.

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

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

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

.

Board of Directors

MD-CEO

DMD-1 GMs

DMD-2

Divisional Heads

Zonal Heads

Branch Managers

Exhibit-5: The Organogram of Agrani Bank Limited .

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Mission of the Organization

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

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

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

Exhibit : 6 Agrani Bank Limited at a glance.

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Research Methodology2.1 Rationale of the Study 2.2 Objectives of the Study 2.3 Data Collection 2.3.1 Secondary Source 2.3.2 Primary source 2.4 Tabulation of Data 2.5 Analysis Techniques & Report Writing 2.6 Limitations of the study

CHAPTER-2

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

Selecting a topic

Accumulating the secondary data

Ascending the data

Data arranging & Sort analysis

Analyzing the data

Assignment building

Submitting the final report

Exhibt: 7, Methodology of the study.

2.1 Rational of the Study:

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

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

Limited .

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

2.3.2) Primary source: The primary sources of my information are as followsa. Direct observation b. Expert opinion c. Queries to the concerning persons.

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

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

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

II. Co-relations and regression analysis:To find out if and to what extent the power bases explained employeess organizational commitment.

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

Commitment I would take any type of job assignment in order 0.786to keep working for this organization

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

0.782 0.756 0.753 0.690

0.577

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

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

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

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Findings and Analysis3.1 Motivation 3.2 Pay structure and benefits 3.3 Performance Appraisal 3.4 Welfare facilities 3.5 Disciplinary and appellate activities 3.6 Business Performance 3.7 Loans and Advances 3.8 Financial Result

CHAPTER-3

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3. FINDINGS & ANALYSIS: 3.1 MOTIVATION MotivationMotivation is a psychological characteristic that contributes to a persons degree of commitment. It includes the facts that cause, channel and sustain human behaviour in a particular committed direction. However, the term motivation has been defined by authors in amy ways. Some of the definitions are as follows: (i) Motivation may be defined as the state of an individuals perspective which represents the strength of his or her propensity to exert effort toward some particular behaviour Gibson (ii) (iii) Motivation refers to expenditure of effort toward a goal- Dubrin Motivation is a cyclical process affecting the inner needs or drives that energize, channel, and maintain behaviour Steers and Lyman. For our purpose, we shall define motivation as the need or drive within an individual that urges him or her towards Goal-oriented action.

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

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

Inner Drives, Needs or Motives

Behavior or Action

Goals

Reinforcement

Satisfaction

Exhibt-9: Motivation process of Agrani Bank Limited .

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

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

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

The model specifies five core characteristics or dimensions:1. Skill variety- the degree to which a job requires a variety- the degree to which a job requires a variety of different activities so one can use a number of different skills and talents. 2. Task identity- the degree to which the job has a substantial impact on the lives or work of other people. 3. Task significance the degree to which the job requires completion of a whole and identifiable piece of work. 4. Autonomy- the degree to which the job provides substantial freedom, independence, and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out. 5. Feedback- the degree to which carrying out the work activities required by the job results in the individual obtaining direct and clear information about the effectiveness of his or her performance.Motivation potential score= Skill Variety + Task Identity +Task significance Autonomy job feedback3

Agrani Bank Limited

designed its job as stated above and maintains ACR(Annual

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

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

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

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

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

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

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

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

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

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

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

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House rent Allowances (According to National Pay Scale-2005):Rate of House Rent (Monthly) For Dhaka Narayangonj, Tongi, Metropolitan Area Chittangonj, Khulna, Rajshahi, Sylhet, Barisal Metropolitan/ Up to TK 2800 65% of Basic Salary Form TK 2801 to 6000 Form TK 6001 to12000 Form TK 12001 to Above Minimum 1590 60% of Basic Salary Minimum 1820 55% of Basic Salary Minimum 3600 50% of Basic Salary Minimum 6600 Municipal Area 55% of Basic Salary Minimum 1370 50% of Basic Salary Minimum 1540 45% of Basic Salary Minimum 3000 40% of Basic Salary Minimum 5400 50% of Basic Salary Minimum 1250 45% of Basic Salary Minimum 1400 40% of Basic Salary Minimum 2700 35% of Basic Salary Minimum 4800

Basic Salary

For Another Places

Exhibit: 11, House Rent Allowances of Agrani Bank Limited

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

KHAofficer/Staff

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

33% above than general rate

GA- Class Staff GHA- Class Staff

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

Exhibit: 12, Daily Allowances of Agrani Bank Limited

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

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

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Steps in Performance Appraisal: Steps of Performance appraisal is shown in theunder mentioned diagram.

1. Establish performance standards with employees

2. Communicate Performance Expectation to Employees

3. Measure actual performance

4. Compare actual performance with standards

5. Discuss the appraisal with the employee

6. If necessary, initiate corrective action

Exhibit 13: The Appraisal Process

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

B. Factors that can distort appraisalLeniency Error:Every evaluator has his or her own value system that acts as a standard against which appraisals are made.

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

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

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

Environmental PolicyBanks environmental ma