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 .
Bangladesh University of Business & Technology(BUBT)
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
Major- Finance & Banking
Department - M.B.A .
Bangladesh University of Business & Technology(BUBT)
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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.
Md.Ibrahim Khalil Ullah
IDNo-021
Batch No- 11th
Major- Finance & Banking
Department - M.B.A .
Bangladesh University of Business & Technology(BUBT)
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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
Md.Ibrahim Khalil Ullah
IDNo-021
Batch No- 11th
Major- Finance & Banking
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.
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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.
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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.
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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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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.
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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
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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
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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.
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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.
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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
: info@abbank.com.bd
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.
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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.
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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
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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
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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
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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
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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
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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: mirb@abbank.com.bd
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%.
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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 ®ulation. .
*> 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.
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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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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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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..
As such the bank has emphasized on the following issues:
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
Clinics and Hospitals
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..
As such the bank has emphasized on the following issues:
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
Clinics and Hospitals
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?
Yes. Loan/Overdraft facility up to 90% of the deposited amount will be
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?
Yes. Loan/Overdraft facility up to 90% of the deposited amount will be
available.
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