Internship Report AB Bank

Internship Report
On
General Banking & Marketing

Strategies of Financial Products
Of
5
INTERNSHIP REPORT
On
“Marketing Strategies of Financial Products &

Customer Services”
Of
Submitted To
Syeda Rownak Afza
Senior Lecturer
BBS, BRAC University.
Submitted By
Rezwan Bin Mostafa
Student ID: 06104020.
BBS Department,BRAC University.
Date Of Submission
6th June, 2010.
BRAC University
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Preface
This report is concerned to be a brief study of the operation, function, tasks and services of
AB Bank Ltd. Banking plays an important role in the commercial and economic development
of a country. Now- a- days banks are using different modern technologies, which influence
the managerial activities, that’s why I decided to do my internship training in the bank. In
preparation of this report I have tried my best to provide all possible information about the
operation, function and tasks of ABBL in brief and comprehensive form. It also includes a
brief description of different departments where I have worked during my internship. I have
also tried my best to use simple and easy words and language.
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Letter of transmittal
Syeda Rownak Afza
Senior Lecturer
BRAC Bussiness School
BRAC University.
Subject: Submission of Internship report.
Madam,
This report on “Marketing Strategies Of Financial Products & Customer Services of AB

Bank Ltd.” is prepared to fulfill the requirement of the Internship program of B.B.A degree.
This report focuses on the different marketing strategies used by AB Bank Ltd. to promote
their products and how they provide customer services.
I am grateful to you that you give me the opportunity to do this report, which was vey
interesting. I have enjoyed preparing the report though it was challenging to finis within the
given time and limited access. I tried my best to compile the information for this report
comprehensive as possible.
Thanking you
Rezwan Bin Mostafa

ID- 06104020
BRAC Bussiness School
BRAC University.
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Acknowledgement
First of all, I would like to thank almoghty Allah for his grace in accomplishing my
internship report timely.
I would like to express my gratitude to my academic supervisor Syeda Rownak Afza from
the core of my heart for her kind support, guidance, constructive, supervision, insstructions
and advice and for motivating me to do this report.
I am also thankful to HR Division of AB Bank Limited for giving me the opportunity to

conduct the internship in Principal Branch of AB Bank Limited. I would like to thank
Mr.Suruz Ali Vutto (SAVP) operation manager of Principal Branch AB Bank Limited.
I am also grateful to Mr. Ashfaq (Principal Officer) who helped me a lot to complete my
internship report by providing data about the financial product of AB Bank.
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Executive Summary
The study is about the General operations and Management of AB Bank Ltd. which focuses
on different types of customer services that are offered by AB Bank and their different
financial product with different marketing strategies. The objective of the study is to identify
the strategies AB Bank uses to market their products. At the same time the paper focuses to
gain an understanding on issues that are important for developing marketing strategies for
financial services.
AB Bank Limited, the first private sector Bank under Joint Venture with Dubai Bank
Limited, UAE incorporated in Bangladesh on 31st December 1981 and 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 and in terms of Articles 23A and 23B of the
articles os Association of the company and with the necessary approval of the relevant
authorities, the shares held by them in the Bank were sold and transferred to Group “A”
Shareholders, i.e. Bangladeshi Sponsor Shareholders.
AB Bank limited was incorporated in Bangladesh on 31st December 1981 as Arab

Bangladesh Bank Limited and started it operation with effect from April 12, 1982. AB Bank
Limited is now fully owned by the Bangladeshis. Since their inception in 1982, they have
been participating in different industrial and national development activities in addition to
normal Trade Finance and SME development. In addition to the 73 branches within the
country ABBL has a branch in Mumbai, India. Beside that they have the wholly owned
Finance company in Hong Kong in the name and style of “AB International Finance Limited”
and representative offices at London and Yangon.
AB Bank commits to nation to take a lead in the banking sector through not only strong
financial positions, but also through innovation of products and services. It also ensures
creating higher value for its respected customers and shareholders. The bank has focused to
bring services at the doorstep of its customers and to bring millions into banking channels
those who are outside the mainstream banking arena. Innovative products and services were
introduced in the field of SME, Consumer Loans, Debit & Credit card (Local &
International), ATM’s, Internet Banking, Remittance services, Treasury products and
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services, Structured Finance for Corporate, strengthening and expanding its Islamic Banking
activities, Investment Banking, specialized products and services for NRB’s ,Priority
Banking and Customer Care. The bank has successfully completed its automation project in
mid 2008. It envisages enabling customers to get banking services within the comfort of their
homes and offices.
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Table of Contents
Contents Page No
Chapter 1 1-5
1.0 Introduction of the report 1
1.1 Background of the study 1
1.2 Purpose of the study 2
1.3 Nature of the study 2
1.4 Scope of the study 3
1.5 Methodology of the study 3
1.6 Limitations 4
1.7 Literature review 4–5
Chapter 2 6 – 20
2.0 Background of ABBL 6
2.1 Mission Statement 8
2.2 Vision Statement 8
2.3 Change of Name 8
2.4 Corporate information of ABBL 9
2.5 Values 9
2.6 Objective of ABBL 10
2.7 Historical review of ABBL 11
2.8 Current profile of ABBL 13
2.9 Management Aspect 15
2.9.1 Executive Committee 16
2.9.2 Audit Committee 16
2.9.3 Management Committee 16
2.10 Management Hierarchy of ABBL 17
2.11 Functional Hierarchy 19
2.12 General Banking 20
Chapter 3 22 – 26
My Job Part
Chapter 4 27 -36
4.0 Introduction of the Department 27
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4.1 ABBL Principle Branch 27
4.2 Current Savings Department 27
4.3 Accounts Department 28
4.4 Credit Department 31
4.5 Remittance Department 34
4.6 Cash Department 36
4.7 Clearing Department 36
Chapter 5 38 - 56
5.0 Financial product 38
5.1 Retail Banking 38
5.2 Corporate Banking 45
5.3 SME Banking 46
5.4 NRB Banking 49
5.5 Islamic Banking 51
5.6 Investment Banking 52
5.7 New Product 55
5.7.1 Ogrim Munafa Patra 55
5.7.2 Be a Millionaire in 3 years 55
5.7.3 Troimashik Munafa Hishab 56
Chapter 6 57 - 60
6.0 Marketing Strategies adopted by ABBL 57
6.1 Understanding Consumer 57
6.2 Identifying & Targeting Financial Prospects 57
6.3 Product Differentiation Strategies 58
6.4 Channels of Distributions 59
6.5 Pricing of Financial Products 59
6.6 Corporate Social Responsibility 59
Chapter 7 61 - 66
7.0 Customer Services offered of ABBL 61
7.1 Credit Card 61
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7.2 Safe Deposit Locker 62
7.3 New MICR Cheque Book 64
7.4 AB Bank VISA Electron Debit Card 64
Chapter 8 67 - 70
8.0 Customer Relation Management 67
8.1 Customer Retention 67
8.2 Promotional Activities 68-70
8.3 Branding Image 70
Chapter 9 71 - 76
9.0 Performance of ABBL 71
9.1 Financial Performance 73
9.2 Operating Performance 74
9.3 Online Banking 75
Chapter 10 77 - 79
10.0 Findings of the Report 77
10.1 Recommendation & Conclusion 78
Bibliography. 80
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Chapter – 1
1.0 Introduction of the report
1.1 Background of the Study
The financial service sector in Bangladesh is now quite competitive to deal with changing
environment. A number of external forces have exerted influence on the sector, including
socio-economic, regulatory and technological factors. Changes to regulatory environment
undoubtedly have had the greatest impact on this sector. Technology has also increased
importance for financial institution especially for private commerce banks.
There are now 30 private commercial banks operating in Bangladesh and they are offering
different products and services but there are few basic differences among them in terms of
structure and performance. Thus the competitions among them are increasing day by day and
marketing of financial products is now becoming an important concern.
The report is a reflection on my experience when I was an internee in ABBL, Principal

Branch, Dhaka. Since its inception in 1982, ABBL has maintained a steady growth over the
past twenty eight years span of its operations.
The study is critical in nature. It was conducted to investigate critically into the operations of
AB Bank Ltd and it also explains that how ABBL provides facility of online banking to its
customers. The annual reports or the consolidation data of the Bank has not been focused in
specific because it does not reflect the operational performance of branches. However , they
have been referred to as when and where required.
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1.2 Purpose of the Study
General purpose
• To get acquaintance with the general operations of ABBL.
• To know about different types of financial products offered by ABBL.
• To have a clear idea about the marketing strategies adopted by ABBL for different
type of financial products
Specific purpose
Specific purpose of the study includes
• To objectively observe the operations of AB Bank Ltd in general and the

operations of ABBL, Principal Branch, Dhaka in specific.
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• To know about their bases for consumer segmentation.
• To know about their product differentiation strategy.
1.3 Nature of the Study
From this study it is evident that, the research that has been conducted is exploratory in
nature.
Exploratory research provides insights into and comprehension of an issue or situation. It

should draw definitive conclusions only with the extreme caution. Exploratory research is a
type of research conducted because a problem has not been clearly defined. Exploratory
research helps determine the best research design, data collection method and selection of
subjects. Given its fundamental natural, exploratory research often concludes that a perceived
problem does not actually exist.
1.4 Scope of the Study
The study covers two areas with its variables, which affects the operation of the branch
directly or indirectly. These two areas of variables are
 Branch specific variable.
 Bank specific variable.
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The branch specific variables are the variables under the control of the branch management
and directly affect its operations e.g.
 Layout of the branch.
 Customers’ relations.
 Departments in the branch.
 ATM Online banking.
The bank specific variables are those variables, which are not in control of the branch
management e.g.
 History of ABBL.
 Services provided by ABBL.
 Role of ABBL.
1.5 Methodology of the Report
Data Sources
Both primary and secondary data have been used in the completion of this report. The
methodology used is as under:
 During the completion of this report, I relied mainly on the primary data. The tools
used for the collection of primary data are interviews and observation. To get primary
data I also performed some practical work.
 The secondary data was mainly used for as a background material and for purpose of
reference. The major sources of secondary data were the annual report 2008 & 2009,
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other printed material of the Bank and internet played a vital role as a source of
secondary data.
1.6 Limitations
The study was subject to the following limitations the absence of which could have made this
report more accurate, systematic and factual.
 Lack of published marketing information.
 Lack of back hand information with stuff.
 Lack of access to data.
1.7 Literature Review
The private commercial banks, operating in Bangladesh, constantly focus on understanding

and anticipating customer needs. They already made significant progress within a very short
period of their existence. Many of the banks have been graded as top class banks in the
country through internationally accepted CAMEL rating.
The CAMEL model is based on the Uruguayan farmers’ model. Participants who have an
interest for a particular topic and who wish to learn mor5e by sharing knowledge, practices
and ideas agree to hold a series of study visits. They take it in turn to organize and host a visit
to their organizations. The even consist of:
• Presentations by managers, practitioners and partners outlining strategies and

practices.
• Discussions around the presentations, as follow- up to inter-visit communications,

generally on key themes and suggestions and ideas for future practice.
• Demonstration of tools or systems.
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• Hands on sessions to enable actual experience.
• Review and evaluation of the practices discussed, the day itself and suggestions for
themes of future visits and inter visits communications.
Most of the have already occupied enviable positions among their competitors after achieving
success in all areas of business operations. Banking scenario undergoes changes time to time
as this very dynamic industry. Private commercial banks are offering different financial
products with different features. They follow various strategies to market such products.
This paper focus on marketing strategies of financial products of ABBL. First of all it is
important to know what marketing strategy is and what the financial products that AB bank
usually offers are.
A marketing strategy can be defined as the outlines of broad marketing logic by which the
business units hopes to achieve its marketing objectives and the specific of target markets,
positioning and marketing expenditure levels. It is a process that can allow organizations to
concentrate its limited resources on the greatest opportunities to increase sales and achieve a
sustainable competitive advantage. A marketing strategy should be centered on the key
concept that customer satisfaction is the main goal.
Financial products refer to those instruments that to those instruments that help you save,
invest, get insurance or get a mortgage. These are issued by various banks, financial
institutions, stock brokerages, insurance providers, credit and agencies and government
sponsored entities. Financial products are categorized in terms of their type or underlying
asset class,volatility. Risk and return.
Understating customer and customer’s needs and requirements is the guiding philosophy of
marketing. A marketing orientation requires the organization to view of its customers. AB is
recognized as the people’s choice, catering to the satisfaction of its cliental. Their satisfaction
is AB’s success.
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Chapter -2
2.0 Background of AB Bank LTD.
AB Bank Limited, the first private sector bank under Joint Venture with Dubai Bank Limited,
UAE incorporated in Bangladesh on 31st December 1981 and 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 and in terms of Articles 23A and 23B of the
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Articles of Association of the Company and with the necessary approval of the relevant
authorities, the shares held by them in the Bank were sold and transferred to Group "A"
Shareholders, i.e. Bangladeshi Sponsor Shareholders (ABBL 2010).
As of December 31, 2007; the Authorized Capital and the Equity (Paid up Capital and
Reserve) of the Bank are BDT 2000 million and BDT 4511.59 million respectively.
Authorized Capital of the Bank has been increased to BDT 3000 million in the Extra
Ordinary General Meeting held on July 16, 2008.
Since beginning, the bank acquired confidence and trust of the public and business houses by
rendering high quality services in different areas of banking operations, professional
competence and employment of the state of art technology.
During the last 28 years, AB Bank Limited has opened 77 Branches in different Business
Centers of the country, one foreign Branch in Mumbai, India and also established a wholly
owned Subsidiary Finance Company in Hong Kong in the name of AB International Finance
Limited (ABBL 2010). To facilitate cross border trade and payment related services, the
Bank has correspondent relationship with over 220 international banks of repute across 58
countries of the 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 53375.35 million, which is precisely 26.85% higher than the preceding year.
On the Advance side, the Bank has been able to achieve 30.76% increase, thereby raising a
total portfolio to BDT 40915.35 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 and inflow of foreign exchange remittances
from abroad.
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AB Bank is known as one of the leading bank of the country since its commencement 28
years ago. It continues to remain updated with the latest products and services, considering
consumer and client perspectives. AB Bank has thus been able to keep their consumer’s and
client’s trust while upholding their reliability, across time. In spite of adverse market
condition, AB Bank Limited which turned 28 this year, concluded the 2009 financial year
with good results. The Bank’s consolidate profit after taxes amounted to taka 230 cores
which is 21% higher than that of 2008. The asset base of AB grew by 32% from 2008 to
stand at over Tk 8,400 cores as at the end of 2008.
The Bank showed strong growth in loans and deposits. Deposit of the Bank rose by Tk 1518
core i.e, 28.45% while the diversified loan portfolio grew by over 30% during the year and
recorded a Tk 1579 cores increase. Foreign Trade Business handled was Tk 9,898 cores
indicating a growth of over 40% 2009.
The Bank maintained its sound credit rating in 2009 to that of the previous year. The credit
Rating Agency of Bangladesh Limited (CRAB) awarded the Bank an A1 rating in the long
term and ST-2 rating in the short term.
The bank decided to change its traditional color and logo to bring about a fresh approach in
the financial world, an approach, which like its new logo is based on bonding, and trust. The
bank has developed its logo considering the contemporary time. The new logo represents our
cultural “Sheetal Pati” as it reflects the bonding with its clientele and fulfilling their every
need. Thus the new spirit of AB is “Bonding”. The logo of the bank is primarily “red” as red
represents velocity of speed and purity. Its new logo innovates, bonding of affiliates that
generate changes considering its customer demand. AB Bank launched the new logo on its
25th anniversary year.
AB Bank has continuously invests into its biggest asset, the human resources to drive forward
with its mission “to be the performing in the country”. The bank has introduced for its
employees. Male employees wear designed ties and females wear share or salwar kamiz, all
the dresses are consisted with the unique AB Bank logo.
AB is recognized as the people’s choice, catering to the satis faction of its cliental. Their satis
faction is AB’S success
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2.1 Mission Statement:
"To be the best performing bank in the country"
2.2 Vision Statement:
"To be the trendsetter for innovative banking with excellence & perfection"
2.3 Change of Name:
Arab Bangladesh Bank Limited changed its name to AB Bank Limited (ABBL) with effect
from 14 November 2007 Vide Bangladesh Bank MRPD Circular Letter No- 10 dated 22
November 2007. Prior to those Shareholders of the Bank approved the change of name in the
Extra Ordinary General Meeting held on 04 September 2007 (ABBL 2010).
New Logo of ABBL
Effective 01 January 2008, ABBL changed its Logo as well.
2.4 Corporate Information of AB Bank Limited:
Name of the Company
AB Bank Ltd
Legal Form: A public limited company incorporated on 31st December, 1981 under the
Companies Act, 1913 and listed in the Dhaka Stock Exchange Ltd and Chittagong Stock
Exchange Ltd.
Commencement of Business
27th February 1982
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Registered Office
BCIC Bhaban, 30-31, Dilkusha C/A
Dhaka 1000, Bangladesh.
Tel: +88-02-9560312
Fax: +88-02-9564122, 23
SWIFT: ABBLBDDH
E-mail: info@abbank.com.bd
Web: www.abbank.com.bd
2.5 Values:
 Service Excellence
 Openness
 Trust
 Commitment
 Integrity
 Responsible corporate citizen
AB Bank Limited see their customers trust as the lifeline of their business, control and
compliance as license to operate, dynamic and motivated people as their strength to multiply
and technology as their weapon to service excellence.
2.6 Objectives of AB Bank Limited:
Maximization of profit along with the benefits of employees is the main objective of the
bank. In addition, the order objectives are:
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 Bringing modern Banking facility to the doorstep of general public through
diversification of banking services, thereby arousing saving propensity among the
people.
 Foreign a cordial, deep-rooted and firm banker-customer relationship by dispensing
prompt and improved client’s service.
 Taking part in the development if the national economy through productive
deployment of the Bank’s resources as well as patronizing different social activities.
 Connecting clients to modern banking practice by the best application of improved
information technology, so that they get encouraged to continue and feel proud of
banking with ABBL.
 Ensuring highest use of the professional workforce through enhancement of their
aptitude and competency.
 Responding to the need of the time by participating in syndicated large loan financing
with likeminded Bank’s of the country, thereby expanding the area of investment of
the Bank.
 Elevating the image of the Bank at home and abroad by sustained expansion of its activities.
 Ensuring maintenance of capital adequacy, comfortable liquidity, asset quality and
highest through successful implementation of the management core risk program
(ABBL 2010).
2.7 Historical Review of AB Bank Limited:
AB Bank Limited (ABBL) a joint collaboration bank with Dubai Bank Limited. It was
formed in Dhaka on 31 December 1981. It started banking operations on 12 April 1982 as a
scheduled private sector commercial bank. Initially the authorized capital of the bank was Tk
200 million divided into 2 million shares of Tk 100 each. The issued and paid up capital was
Tk 80 million. The authorized capital of the bank has later been enhanced to Tk 800 million.
The paid up capital was also enhanced at different times of its operation and stood at Tk
409.94 million in December 2000. ABBL is the first Arabian-Bangladeshi joint venture
private commercial bank in Bangladesh and was formed with the assistance and support of
the Dubai-based Galadari family, a group active in international trade, finance and industry
(ABBL 2010).
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Nine numbers of boards of directors including the chairman governs the overall affairs of the
bank. The chief executive of the bank is its managing director. In all, 1,472 employees,
including the executives and officers, work in the bank in various capacities. The bank has 62
branches (urban-46, rural-15 and overseas-1). The Head Office of the bank is located at
Dilkusha, Dhaka.
ABBL was set up to conduct all types of traditional commercial banking functions including
foreign exchange business and other financial services. It has been able to achieve
satisfactory progress in all areas of its planned activities including deposit mobilization,
credit expansion, servicing imports and exports, remittance services, investment, and product
innovation.
At the end of 1982, the first year of the banking business, the total deposits of ABBL
amounted to Tk. 136.71 million. This stood at Tk. 16,217.5 million on 31 December 2000.
The deposit-mix of the bank in 2000 was composed of fixed deposits (56.6%), savings
deposits (21.84%), and current and other deposits (21.56%). The amount of total reserve
funds of ABBL was Tk. 354.81 million in 2000 as against Tk. 202.48 million in 1995.
Total loans and advances of ABBL increased from Tk 116.96 million in 1982 to Tk 12,548.4
million in 2000. Responding to the needs of the market, ABBL introduced three new
schemes: Student Loan, Personal Computer Loan for Educational Institutions (for their
laboratories), and Monthly Interest Payment Facility to term deposit holders. The broad
economic areas in which the bank lends (and the total outstanding amount of advances to
those areas in million Taka) up to 31 March 2000 were: agriculture and fisheries (278),
industry (2,811), retail/wholesale trade and hotels and restaurants (3,769),
transport/communication and storage (180), insurance, real estate and trade service (1,384),
special credit programmers, including poverty alleviation and income generating activity
(520), and others (1,874). Up to 31 March 2000, ABBL provided financial support in the
form of loans and advances to 88 large and medium scale and 145 small and cottage
industrial projects amounting to Tk. 2,300 million. It has also extended project financing in
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syndication with other banks. The ratio of advances and deposits during the year 1999 and
2000 were 80.66% and 77.38% respectively (ABBL 2010).
In 2000, the bank's total classified loans were 23.45% of its total loans and advances. It
maintained a provision of Tk. 1,435.4 million for them, which affected the bank's
performance and degraded the quality of its lending assets. The quantum of investment of the
bank rose to Tk. 2,429.66 million in 2000 from Tk. 23 million in 1982. Of the total
investment in 2000, 93% was in government treasury bills. The rest was invested in other
sectors including debentures of ICB, ordinary shares of companies and prize bonds. In that
year, the bank earned an income of Tk. 170.21 million from its investments.
In the financial year ending on 30 June 2000, total foreign exchange business of the bank was
Tk. 11,600 million, which included imports (34.48%), exports (58.19%) and remittances
(7.33%). ABBL has foreign correspondent relationships with 221 banks/bank offices and
other financial institutions at different international financial centers. The overseas operations
of the bank are conducted through its Mumbai branch in India and its subsidiary company,
the AB International Finance Limited in Hong Kong. The bank has two foreign representative
offices - one in London and the other in Yangon.
As of December 31, 2006; the Authorized Capital and the Equity (Paid up Capital and
Reserve) of the Bank are BDT 2000 million and BDT 2582.76 million respectively. The
Sponsor-Shareholders hold 50% of the Share Capital; the General Public Shareholders hold
49.43% and the rest 0.57% Shares are held by the Government of the People's Republic of
Bangladesh (Annual Report 2008). However, no individual sponsor share holder of AB Bank
holds more than 10% of its total shares.
During the last 27 years, AB Bank Limited has opened 74 Branches in different Business
Centers of the country, one foreign Branch in Mumbai, India, two Representative Offices in
London and Yangon, Myanmar respectively and also established a wholly owned Subsidiary
Finance Company in Hong Kong in the name of AB International Finance Limited. To
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facilitate cross border trade and payment related services, the Bank has correspondent
relationship with over 220 international banks of repute across 58 countries of the world.
2.8 Current Profile of AB Bank Limited:
competence and employment of the state of art technology (Annual report 2008).
At present, the bank has 74 branches throughout the country with about 18000 employees.
The existing Board of director is 14. M. Wahidul Haque is the chairman of board and Kaiser
A. Chowdhury is the President and Managing Director. The bank has been restructured their
five main business which are responsible for earning the revenues of the bank. These are:
 Corporate Banking
 Consumer Banking
 SME Banking
 Treasury and
 Cards
All other department of the bank acts as support for these units and helps them in every
possible way. Under this arrangement, the responsibilities and functions of those branches
have been reduced dramatically. Many of the activities like credit evaluation and approval,
monitoring of loans, trade services activities etc. are now centralized in the Head Office. The
branches of the bank are now termed as the “sales and service Centers” which are solely
concentrated on delivering services to the corporate and consumer clients and maintain
relationship with them.
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sector commercial banks of the country (Annual report 2008).
On account of Foreign Trade, the Bank made a significant headway in respect of import,
export and inflow of foreign exchange remittances from abroad.
competence and employment of the state of art technology (Annual report 2008).
At present, the bank has 74 branches throughout the country with about 18000 employees.
The existing Board of director is 14. M. Wahidul Haque is the chairman of board and Kaiser
A. Chowdhury is the President and Managing Director. The bank has been restructured their
five main business which are responsible for earning the revenues of the bank. These are:
 Corporate Banking
 Consumer Banking
 SME Banking
 Treasury and
 Cards
All other department of the bank acts as support for these units and helps them in every
possible way. Under this arrangement, the responsibilities and functions of those branches
have been reduced dramatically. Many of the activities like credit evaluation and approval,
monitoring of loans, trade services activities etc. are now centralized in the Head Office. The
branches of the bank are now termed as the “sales and service Centers” which are solely
concentrated on delivering services to the corporate and consumer clients and maintain
relationship with them.
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sector commercial banks of the country (Annual report 2008).
On account of Foreign Trade, the Bank made a significant headway in respect of import,
export and inflow of foreign exchange remittances from abroad.
2.9 Management Aspects:
The AB Bank Limited Management Team comprises of a group of people and each them
comes with an international working background and is committed in leveraging their
experience to take ABBL to greater heights by ensuring top line revenues with dynamic
capabilities. This Management Team is unique in being able to envision the need of the
business by bringing in admixture of advanced technology solutions know-how and
revamping the organizational make-up for maximum profitability. Other than the President
and Managing Director, the remaining Management Team Members each lead a functional
Department.
This mix of people is persistent to provide unparallel services to its customers, come up with
timely and innovative products and services and to enhance the capabilities of its people of its
people while emphasizing on the latest technology. This they believe will take the bank to a
foremost position in the country by the turn of the year 2008. This team is to drive the
business to maximize the operational excellence and efficiency through acquisition of talent,
developing systems, processes and people and through blending of these to let customers
revel in with fulfillment and permanency (Annual report 2008).
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Like any other business organization, all the major decisions in ABBL are made by the top
management committee. The board mainly establishes the objectives and policies of the bank.
There are three committees of the board for different purpose.
2.9.1 Executive Committee:
This committee is comprised of Chairman, four members of the bank and one member
secretary. The functional and responsibilities of this committee is to establish and
periodically review the bank’s overall credit and lending policies and procedures,
development and implement uniform and minimum acceptable credit standards for the bank,
new credit proposal assessment and approval etc.
2.9.2 Audit Committee:
The main objective of this committee is to assist Board of Directors with regard to the audit
of financial reports, management reports by the external auditors, internal controls and
internal audits. ABBL have four members in audit committee.
2.9.3 Management Committee:
The main objective of this committee is to ensure business operations are in line with the
Bank’s policies, strategies and objectives, the bank has set up. This committee consists of the
Managing Director, Deputy Managing Director and different business unit heads (ABBL
2010). The honorable members are:
2.10 Management Hierarchy of AB Bank Limited:
Chairman
Board of Directors
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Management Director
Deputy Managing Director
Senior Executive Vice President
Executive Vice President
Senior Vice President
Vice President
Senior Assistant Vice President
Assistant Vice President
Senior Principal Officer
Principal Officer
Management Trainee (Entry Level)
Senior Officer
Officer
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Trainee Officer (Entry Level)
Contractual Officer (Entry Level
2.11 Functional Hierarchy
The functional hierarchy represents the reporting order in the hierarchy of ABBL. The
hierarchy has president and directors at top management level and officer Grade 1, 2 and
Grade 3 at the lower level management of ABBL. The middle level management consists of
regional general Manager and Regional controller of operations. These positions are not
fixed. Any person of the hierarchy above the branch manager can be appointed as RGM and
Controller Operations.
President and CEO
Regional General 5
Board of DirectorsOfficeHead
G-1, of Departments
2Branch
and other lower staff
Manager Controllers of
Manager Operations
2.12 General Banking
Financial institution that mediates or stands between ultimate borrowers and ultimate lenders
is known as banking financial institution. Banks perform this function in two ways – taking
deposits from various areas in different forms and lending that accumulated amount of money
to the potential investors in other different forms.
General banking is the starting point of all the banking operations. General banking
department aids in taking deposits and simultaneously provides some ancillaries services. It
provides those customers who come frequently and those customers who come on time in
banking for enjoying ancillary services. In some general banking activities, there is no
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relation between banker and customer who will take only one service from bank. One the
other hand, there are some customers with who banks are doing it business frequently. It is
the department, which provides day to day services to the customers. Every day it receives
deposits from the customers and meets their demand for cash by honoring cheques. It opens
new accounts, demit funds, issue bank drafts and pay orders etc. Since bank is confined to
provide the service everyday general banking is also known as retail banking.
General Banking consists of the many sections in the branch. These are
 Customer service.
 Account opening / closing.
 Remittance
 Payment Order issue.
 Demand Draft issue / collection.
 T.T issue/ collection
 Endorsement
 IBC / OBC Collection.
 Deposit Department
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 Locker Service.
 Account’s Department.
 Clearing
 Transfer.
 Cash.
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Chapter- 3
My Job Part
I did my internship in accounts opening department of Principal branch of AB BANK

LIMITED. It’s a nice department for learning different types of banking material like
different types of account, their requirement, and their benefit to the customers, about the
cheque books and I also have to handle the customers who usually come to open account, to
give cheque book requisition, receive the cheque books and who come to update their
information in the customer database, scanning customer signature card.. It had been a great
experience to do my internship in such a important department of Principal branch of AB
BANK Limited. I have found some study when I did my internship in accounts opening
department. Mainly I have to do these task in my internship period, they are
 Opening account
 Giving requisition for cheque books.
 Receiving cheque books arrange them and give it to the right person.
 Scan the signature card.
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 Updating legacy accounts.
 Customer service.
Opening Account: Opening account is the core job responsibility for account opening
department. People have different purpose for open an account. Some people wants to open
savings account, some wants to open current account and some wants to open FC or foreign
currency account. Different types of account needs different types of papers. Now I will
describe about different types of account that AB bank offers
1. The Bank offers the following types of accounts to its various types of customers:
i) Current Account
ii) Savings Bank Account
iii) Special Notice Time Deposit (STD)
iv) Fc (Foreign Currency) Account.
Current Account:
This type of account is opened by both individuals and business concerns including
non-profit making organizations. New current account must be opened with a cheque
only but there must be some initial cash deposit. Opening of current account requires
proper introduction. Frequent transactions (both deposits and withdrawals) are
allowed in this type of account. A current account holder can draw cheques on his
account for any amount and for any number of limos in a day as the balance available
in the account permits. No interest is allowed on current account. A minimum balance
as prescribed by the Head office must always be maintained for this type of account.
Current account holders have pay taka 1500 per year as a charge. Statement of
account is to be dispatched to the account holder on monthly basis or as may be
requested by the customer, through a forwarding memo as per prescribed format
retaining an office copy for reference. This type of account need some papers for
opening a current account like if it is opened by person then he or she has to submit
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his or her one copy of the photocopy of his or her national id card or passport and one
copy of photocopy of his or her TIN certificate . Every person has to fill the account
form and the ETP (EXPECTED TRANSACTION PROFILE) form by which they
measure how much money the person will transect. Limited company current account
need photocopy of their trade license, TIN certificate. From 12 etc.
Savings Bank Accounts:
This is a type of account opened by individuals for saving purposes depositing

amounts over a period of time. Savings Bank Account also requires proper
introduction. Deposits are made through deposit slips and withdrawals are made
through printed cheques supplied while opening the account. No new account can be
opened with a cheque only but there must be some initial cash deposits. This type of
account earns interest at a prescribed rate. Interest on SB account shall be calculated
& accrued monthly on the basis of guidelines issued by Head Office from time to time
and credited to the account half-yearly in June and December each year. A minimum
balance as mayo be prescribed by the Head Office from time to time is required to be
maintained in a SB account. prescribed incidental charge is to be realized every half
year if the balance comes down the required minimum balance. A maximum balance
of SB account on which interest is payable is fixed by Head Office from time to time.
A person needs either one copy of his photocopy of national ID card or photocopy of
passport. Savings bank account can be joint.
As per existing rules, a depositor can withdraw from his SB account not more than
twice in a week up to an amount not exceeding 25% of the balance in a week up to an
amount not exceeding 25% of the balance in the account, subject to a maximum of
Tk. 10,000/- per week. A prior notice for 7 days is required to be given for
withdrawing money in excess of the aforesaid limit. In case withdrawals are made
violating the aforesaid prescribed limits, no interest is to be paid on such account for
that month in which the default took place. A penalty is also charged to the customer
at the discretion of the Manager, each time a cheque is returned unpaid for want of
founds in the account.
These saving s bank account rules are subject to changes from time to time. Statement
of account is to be dispatched to the account holder on quarterly basis or as may be
requested by the customer.
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Short Term Deposits (S.T.D.):
Short term deposits account is one type of current account. Withdrawals from this
type of account require a prior notice varying from 7 to 29 days and 30 days or more.
Interest on S.T.D should be paid as per instruction issued by Head Office from time to
time.
Based on demand and supply of funds in the money market, but in no case interest
should be allowed exceeding the prescribed rates applicable for Fixed Deposit of
different tenor, without obtaining prior approval of Head Office. The difference
between the face value of the Certification of Deposits and the prepared interest will
be received by the Bank from the purchaser of BCDs at the time of issue. The Bank
will not ask any question, not even the depositor’s name. No record will be kept in the
Bank other than the amount, certificate number, rate of interest, date of sale and date
of encashment. The certificate is transferable by delivery alone and does into require
any endorsement. Premature encashment of BCD is not permissible. No credit facility
should also allowed against the security of Bearer Certificate of Deposits
Foreign currency Account or FC account: FC account or foreign currency account

mainly opened by the people who are working in foreign country. They have to select their
nominee who is permitted to run the account instead of him or her. For opening a FC account
customers have to submit their work permit license, trade license if they have and the
photocopy of their passport, photocopy of national identity card and also the photocopy of
passport and national ID card of nominee. Fc account cannot be joint. It has to be a single
account holder’s name. Customers have to deposite 500 us doller for open a fc account in AB
Bank Limited
After getting the information from customers from I had to put it on the system an after
getting all the information system delivers the account number of the customer. Then I
had to fill a form which is known as KYC (Know Your Customer) form and approve the
account from the operation manager.
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Giving requisition for cheque books: Bangladesh Bank has declared to give MICR cheque
books to customer which is machine readable. So AB bank has to give MICR cheque books
to their customer. In this case AB bank goes with a contractual agreement with the third party
who makes MICR cheque books for AB bank and the requisition for this MICR cheque book
is given from accounts open department. I usually sent the request to the third party by
internet and by the requisition software. I have to verify the signature from teller and then
give requisition to the third party. For saving account 20 pages cheque book is available and
for the current account 50 pages cheque book is available for the customer. AB provides the
MICR cheque within three working days after the requision of cheque books.
Receiving cheque books arrange them and give it to the right person: After three days of
requisition of cheque books the third party or contracted printing firm send the cheque books
to the respective branches. I have to collect the cheque books from them, cheque the
requisition list with the provided cheque books. Then I give entry the name of cheque books
into a register book. Then it goes to the locker of cheque books according to its account
number.
When customer comes to get their cheque books I have to collect their signature on to the
register copy, check the signature from requisition paper and then give posting the serioul
number of cheque books to the system. AB bank charges taka 30 as commission and taka
4.50 as
Vat for 20 pages cheque books and and taka 75 as commission and taka 11.25 for 50 pages
cheque books.
Scan the signature card: Customers have to fill a form to open an account. They also have to
give two signatures on that signature card where a passport size photo of the account holder is
attached with that card. Accounts opening department has to scan the card for identify or
verify the customer and their signatures. After scanning the card it will go to cash or
operations department for the same purpose indentify and verify the signature of customers.
Updating legacy accounts: Bangladesh Bank has announced to update previous accounts
which were opened from the beginning to 2006. AB bank was started their journey from
1988. So it is about 4500 accounts which AB bank considered as a legacy accounts. I had to
inform the legacy account holder for updating their accounts and after getting the information
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or required papers we filled the KYC (Know Your Customer) form of those accountholders.
Then I putted the new information in the database of customers and filled it properly.
Customer service: I also had to give some customer service like giving balance, helped
them to fill up the account opening form, helped them to understand why their account is
closed, provided the information about the rate of interest and charge of different accounts.
Chapter -4
4.0Introduction of The Departments
4.1ABBL Principal Branch
(Branch Code -4005)
I did my internship of twelve weeks in ABBL Prince Branch (4005) from 01-03-2010 to 30-
05-10. This is called the main branch of AB Bank. This is also the biggest branch of AB
Bank Ltd.
So I got much opportunity to learn different banking activities by doing my internship in the
Principal Branch of AB bank Ltd.
4.2 Current Saving Department
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In ABBL Principal Branch current saving departments mainly deals with cheques, vouchers
and advices. First of all a cheque holder have to present his / her cheque to the person
responsible for issuing the tokens. Then cheque is passed on to the operator to entry it in
computer. Afterward it will go far signature verification after which it will be given to cashier
for payment.
Computer Operations
In ABBL Principal Branch al the operations are recorded in the computer that are as under;
1. Daily Transactions
To record all the transactions of deposits made by the people and also to record all the
withdrawals made by the people or customers. Each transaction has to be the recorded in its
appropriate head of account with the help of described codes.
2. Vouchers
To record all the vouchers made by the remittance department. Remittance department have
to prepare debit and credit vouchers for about every transaction recorded in their department.
Then these vouchers are recorded in the computer.
3. Advices
To record all advices received from other branches most of the inter branch or intra branch
remittances are subject to ultimate receipt of advices from the corresponding branch to
materialize the transaction. These advices also have to be recorded in computer.
4. Statements
To close the daily record a number of statements have to be the printed out. Like
 Everyday’s transaction (sequence )
 Overdrawn facilitated a/c.
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 Statements markup sheet.
 Inter branch transactions.
 Detail of PLS and current a/c
 Day’s transaction ( a/c wise)
 Operative, Dormant, Inoperative and Unclaimed a/c
 Summary of al a/c ( debits, credits & balances)
 Profit due, transferred, disbursed etc.
4.3 Account Department
Deposits are the Life Blood of A bank. Borrowing funds from outside parties is more
important because the entire banking system is based on it. Receiving of deposits is basic
function of all commercial banks. Commercial banks do not receive these deposits for
safekeeping purpose only. When the bank receives the amount of depositors as a depositor, it
becomes the owner of it. The bank may therefore use deposits, as it deems appropriate. But
there is an implicit agreement that the amount owned by the bank will be paid back to the
depositors on demand or after a specified period of time. The borrowed capital of the bank is
than the bank of own capital. Bank’s borrowing is mostly in the form of deposits. These
deposits are lend-out to different parties larger the difference between the rate at which these
deposits are borrowed and the rate at which they lend out. The greater rate will be the profit
margin of the bank. Larger the funds lend out the greater will be the return earn on them and
greater the amount of return on these earned greater will be the profit of the bank. It is
because of this interrelated relationship. Deposits are referred to as the “life blood small” for
any banking sector.
Types of Account
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 General Products are :
Current deposit:
Interest Rate 0.00%
• Individual Account
• Joint Account
• Proprietor ship Account.
• Limited Company Account.
Savings Deposit:
Interest Rate 6.00%
• Individual Account
• Joint Account
Short Term Deposit:
Interest Rate 5.00%
• Proprietorship Account.
• Limited Company Account.
Fixed deposits:
Fixed deposit is one, which is repayable after the expiry of a pre determined period fixed by
him. The period varies from 1 month to 12 months. These deposits are not repayable on
demand but they are withdrawing able subject to period of notice. Hence, it is popularly
5
known as “Time Deposit “or “Time Liabilities”. Normally the money on a fixed deposit is
not repayable before the expiry of a fixed period.
Before opening a fixed deposit account a customer has to fill up an application from which
contains the followings:
In case of fixed deposit account the bank needs to maintain a cash reserve. So ABBL offers a
high interest rate in fixed deposit accounts. The interest rates followed by ABBL fixed
deposit accounts are:
Interest Rate:
1. 1 Months and above but less than 3 months : 8.50%
2. 3 months and above but less than 6 months 11.00%
3. 6 months and above but less than 12 months 11.25 %
4. 12 months and above : 11.75%
The FDR becomes renewed automatically in ABBL if the customer does not encash it within
7 days of maturity. In case of encashment of FDR in maturity, following accounting
treatments are given
Excise Duty on FDR………………………………..Dr
Income Tax on interest…………………………..Dr
FDR A/C…………………………………………Dr
Cash A/C…………………………………………Cr
Interest on FDR………………………………….Cr
If the customer wants to draw the interest rate only, then following entries are givcn:
Interest on FDR A/C……………………………Dr.
Cash A/C……………………………………….Cr.
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In case of “Before Maturity Encashment” interest is calculated for the days from the date of
opening the FDR account.
4.4 Credit Department
Lending Principals
The basic function of the bank is to accept deposit and lend money to the borrower against a
spread so to be able to give some profit to the depositors as well as to earn profit for the bank.
While lending money to the borrower the bank should observe the following lending
principals:
 Safety Principals: It means that the lend money will come back along with interest or
service charges etc. The borrower should not invest the borrowed money in
unproductive or speculative business.
 Liquidity Principals: The money which has been lended to the borrower should be
returned to the bank on demand or as repayment schedule provided by the client. The
sources of repayments should be clear and definite.
 Purpose Principals: The purpose of the advances should be legitimate and productive.
It should be ensured that the banks, funds are not being utilized for speculative
business. The credit restrictions by the central bank should not be violated & it should
be ensured also. It is always beneficial for the bank to finance for short time
requirements.
 Profitability Principals: The end result of every business activity should be to earn
some profit. Similarly the bank must get some profit out of the activity of lending
money. So that the depositors could get their shares as well as the shareholders could
earn something from their investment.
 Security Principal: The proposal should be dealt on its merit not on security. The
security should be considered a safety for the bank only in case of unexpected
5
emergencies. All the relevant documents of securities must be obtained & got
valuation of the property or any other security should be assessed correctly.
 Spreading of Risk Principals: It is always safe for the bank to spread the risk in large
number of borrower instead of loaning huge amount to few big shots. It is better to
obtain different types of securities instead of concentrating on one security.
 National Interest and Suitability Principal: It is our moral as well as legal obligation to
ensure that no loaning is running counter to national interest. It is our duty to ensure
that our lending policies are not against the social conditions or bindings.
Functions of Credit Department
The main function of the credit department is to lend money to the customer. AB Bank Ltd.
Lends money in the form of clean advances against promissory notes as well as secured
advances against tangible and marketable securities. Beside these ABBL also lend money
against life policies and immovable property.
LIEN
Lien is the bank right to with hold property until the claim on the party is paid. The bank
looks at their liens as protection against loss or overdraft or any other credit facility. In
ordinary lien the borrower remains the owner of the property, but the actual or constructive
possession remains with the creditor or bank though the borrower has no right to sell it.
 By Cash Credit: In this the bank lends money to the borrower against tangible security.
The total amount of loan is not paid in one installment. The borrower has to pay the
markup on the amount borrowed. Cash credit is favorite loan for large commercial and
industrial concern.
 By Overdraft: This is the most common type of bank lending. When a borrower requires
temporary accommodation, ABBL allows its customer to withdraw an excess of the
balance from their account which is borrowing customers have in credit and thus called
overdraft. This facility is given to regular, reliable and well established customer. When it
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is against collateral securities, it is called “ Secured Overdraft” & when borrowing
customer can not get the offer of any collateral security except his or her personal security
then the accommodation is called “ Clean Overdraft”
Types of Finance
 Short Term Finance
AB Bank Ltd. receives the saving of the people and lends it for short term to its
customer. Short term finance is generally given for a period of one year or less in
duration.
 Medium Term Finance
The duration range of the intermediary term finance is from one year to three years. It
is called the term loan. Intermediary term finance is usually given for the expansion of
an existing business or for the purchase of new equipments.
 Long Term Finance
This type of finance is required for the period of more than five years. Long term
finance is generally given for the compilation of big projects, for the construction of
business and for the purchase of machineries.
Procedure of Applying For Loan
Any customer who applies for loan should have an account (usually current account) with
ABBL branch concerned. That account must be in running position. When approval from
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head office is given, branch gives term & condition to the party. Bank does not advance
100% loan against a security, rather the profit margin is different in different types of loan.
4.5 Remittance Department
Another important department in ABBL is Remittance department. The remittances

department transfers the funds from one bank to another bank and from one place to another
place.
In remittance department the collection take place. ABBL made payment of only open
cheques on the counter and prohibits the payment of cross cheques. ABBL transfers money
from one place to another by the following means:
 Mail Transfer
When a customer requests the bank to transfer his money from this bank to any other
bank or the branch of the same other bank, the first he has to do is to fill an
application form. If the customer is not the account holder of this bank, then firstly he
has to deposit the money and then above procedure will be adopted to transfer his
money. Different banks and different branches give mail to transfer the money.
 Telegraphic Transfer
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With the changing requirement of the customer, ABBL has introduced the fastest
transfer of money. The sender is required to apply through a form in which he will
give all the necessary details about the sender and beneficiary. The sender deposits the
money to be transferred plus bank charges at the bank counter. The remittances
officials send a telegram to concerned branch with a specified code words and the
receiving branch makes payment to the beneficiary. Vouchers are sent by ordinary
mail to keep the record. On TT, no excuse duty is charged only commission and
telegram charges are charged.
 Pay Order
Pay order is the most convenient simple and secure way of transfer money. It is issued
by, drawn upon and payable by the same branch of the bank. It is neither transferable
nor negotiable and such as it is payable to the payee named there in. The following
are the parties to a pay order:
 Purchase is a person, firm, company or local authority.
 Issuing/ paying branch is one which issues/pays on presentation.
 Payee is a person named there in.
 Demand Draft
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Demand draft is another way of transfer money from one bank to another bank.
Unlike pay order, a form is required to be filled for the issuance of the demand draft
in which necessary particulars about the beneficiary and sender are given. The sender
deposits the amount of DD plus commission and other charges on the bank counter,
from where he is given a receipt and accordance with this receipt he is issued.
The following are the main essential of the draft:
 It is a negotiable instrument.
 Filling a form and depositing the amount written about on it.
 It is a written order to its branches or to another bank to pay the stated amount
on draft.
4.6 Cash Department
This is the most important and critical department in a bank. There are two basic functions
performed by the cash department. These are
 Receipts
An individual who has account in the bank can deposit money in his account. For deposit of
the money the individual has to fill the deposit slip in which the account holder writes his
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name, account number, amount of money both in figures and in words. After filling the
deposit slip the cash amount along with the deposit slip is submitted to the cashier. The
cashier collects the cash and counts it after verification the cashier stamps the deposit slip.
One part of the deposit slip remains with the bank for the record purposes. The cashier also
record the deposits made by the customer in credit sheets daily. The deposits of all customer
of the bank are controlled by mean of ledger account and has separate ledger cards in which
his /her total record is kept. Bill collection is also one of the main functions of bank. Cashier
has to prepare a list of bills’ serial number, a copy of which is to be sent to the corresponding
organization.
 Payments
The procedure of clearance of a cheque or payments is as following. First of all the customer
presents his cheque to the cashier. The cashier records the account number and the amount,
which is to be drawn. Then the cashier check the cheque number in the computer for the
verification whether the account has such amount is his account which he is demanding or
not. If the computer passes the cheque, the passing officer signs the cheque and sent it to the
cash counter then the cashier pays the written amount to the customer and then in the end
cashier records the amount paid in computer.
4.7 Clearing Department
In clearing process, if the account holder of ABBL receives the cheque of other bank like
City Bank, Prime Bank etc and he submits it in ABBL branch then it needs to be cashed. At
the same time the clearing process starts. When the cheque is cleared then the today stamp is
required. Some cheque is drawn on ABBL. This is called outward clearing. These cheque
will be entered in the outward clearing register and the advices is sent for the clearance of
cheques. Then account holder account is credited.
OUTWARD BILL FOR COLLECTION
OBC means the cheque of other banks. When they sent OBC the OBC is credited & the OBR
is debited and the advice is made on that time, one copy is remain in the bank and the other
copy is sent to the related branch. When they realized the opposite entry is made it is entered
in the OBC register. The income a/c commission is credited and postage.
5
Chapter -5
5
5.0 Financial Product Offered By ABBL
The product is usually the basis on which customer satisfaction is created. As such it is
vital component of the marketing mix. The product provides the basis for competition, it
enables ABBL to generate income and it can provide a tangible indication of the
strategies direction of ABBL
Thus ABBL has become increasingly concerned with a number of issues surrounding
product strategy, including
 The process and procedure involved in the development of new financial services and
products.
 The factors which contribute towards the successful adoption of new product.
 How to manage the product over its life to perfect it from competition.
 How to use branding to differentiate the product from the range.
 How to implement the withdrawal process with minimal adverse effects for the banks
as well as the customer.
5.1 Retail Banking
Unsecured Loans
Product Name Personal Loan
Target Customer Employees of reputed Local Corporate, MNCS,

NGOS, Airlines, Private Universities Schools and
Colleges, International Aid Agencies and UN bodies,
Government Employees, Self Employed
professionals ( Doctors, Engineers, Chartered
Accountants, Architects, Businessman)
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Loan Amount Minimum TK 25,000.00
Maximum TK 5,00,000.00
Charges Application fee Tk 500.00
Processing fee: 1% on the approved loan amount or
TK 2000.00 whichever is higher.
Tenor Min 12 months
Max 36 months
Rate of Interest 14.50% p.a-17.50% p.a
Security Hypothecation of the product to be purchased. Two

personal guarantees ( as per our list of eligible
guarantors)
Product Name Auto Loan

Target customer Employees of reputed Local Corporate, MNCS,
NGOS, Airlines, Private Universities Schools
and Colleges, International Aid Agencies and
UN bodies, Government Employees, Self
Employed professionals ( Doctors, Engineers,
Chartered Accountants, Architects,
Businessman.
Purpose To purchase Brand new vehicle, non registered
reconditioned vehicle.
Loan Amount 70% for the brand new car

60% for the reconditioned car but must not
exceed BDT 10,00,000.00
Charges Application Fee : TK 500.00
Processing Fee: 1% on the approved loan
amount or TK 5000.00 whichever is higher.
Tenor For Recondition Car: Max 36 months
For Brand new car: Months.
Rate of Interest 14.50% p.a-17.50p.a
Security Hypothecation of the vehicle to be purchased.
Two personal guarantees (as per list of eligible
guarantors)
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Product Name Easy Loan ( For Executives)
Target Customer The loan is specially designed for salaried
people who are employed in different reputed
companies.
Purpose Marriages in the family, purchase of office
equipments/ accessories, purchase of
miscellaneous household appliances, purchase
of personal computers, purchase of audio- video
equipment, purchase of furniture, advance rental
payment, trips abroad, admission / education fee
of children etc.
Charges Application fee TK 500.
Processing fee TK 1% on the approved loan
amount or TK 1000.00 whichever is higher
Tenor Min 12 months
Max 36 months
Rate of Interest 16.00p.a
Security Letter of confirmation from the employer. One
personal guarantee (as per list of eligible
guarantors)
Product Name House /Office Furnishing/ Renovation loan

Target Customer Expatriate Bangladeshi Nationals who are in
business or service holders. Employees of
reputed banks & Leasing companies, reputed
local corporate, MNCs, NGOs, Airlines,, Private
Universities, Schools and Colleges,
International Aid Agencies and UN bodies.
Government employees, self employed
professionals, reputed and highly respectable
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businessman with a reliable source of income.
Purpose House / office furnishing/ renovation, for
interior decoration/ electrical fittings, wooden
cabinets, purchase / furnishing of apartments
etc.
Loan Amount Min TK 1,00,000.00
Max TK 10,00,000.00
Charges Application fee TK 500.00
Processing fee 1% on the approved loan amount
or TK 2000.00 whichever is higher.
Tenor Min 12 months
Max 48 months
Rate of Interest 16.50p.a
Security Title deed of the House/Office to be furnished/
renovated along with memorandum of deposit
of title deed duly supported by a notarized
power of attorney to be kept by the bank as a
matter of comfort, “Two personal guarantees
( as per our list of eligible guarantors).
Registered mortgaged of the property if the loan
amount is more than Tk 5.00 lac.
Product Name Gold Grace – Jewelery Loan

Target Customer Both female and employees of reputed banks &
Leasing companies, reputed local corporate,
MNCs ,NGOs, Airlines, Government
employees, self employed professionals, reputed
and highly respectable businessman with a
reliable source of income.
Purpose To purchase ornaments/ jewellery for personal
use.
Charges Application fee TK 500.00
Processing account fee: 1% on the approved
loan amount or TK 1000.00 whichever is
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higher.
Tenor Min 12 months
Max 36 months
Rate of Interest 16..00p.a

Security Letter of confirmation from the employer.
Personal guarantee from the parents and spouse.
Product Name Staff Loan

Target customer All permanent employees of AB bank.
Purpose Marriages in the family purchase of
miscellaneous household appliances purchase of
personal computer purchase of audio-video
equipment purchase of furniture.
Loan Amount According to the debt burden ration and other
criteria
Charges Processing fees 1% on the approved loan
amount.
Tenor Min 12 months
Max 36 months
Rate of Interest 15.50p.a.
Security Hypothecation of the product to be purchased.
Product Name Education loan.

Target customer Students criteria
• Students of reputed educational institute,
such as public & private universities,
medical colleges & engineering institute.
• Undergraduate & Post graduate level.
• Professional degrees (Chartered
Accountants (CA), Cost& management
Accountants (CMA), Marine, MBM.
MBA).
• Doctorate degree (PhD), FCPS ETC.
• Occupation : Student
• Minimum age : 17 years
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• Maximum age : 40 years
• Educational Qualification: Minimum
HSC / A – Level Pass.
Parents Criteria:
Service holder:
• Individuals with ranks equivalent to
Senior Assistant Secretary or higher
qualify guarantor.
• Banks officials (Equivalent to Senior
Principal Officer of NCBs, AVP/ Branch
Manager of Local and Foreign Banks) and
Department Head of Multinational
Company or established Local Corporate.
Guarantors must be accepted by the
Branch Manager/ Head office.
Businessman :
• Well reputed and widely respected
self employed professionals.
Purpose To financially assist the parents: Admission/
Education fees, Semester fees, Study abroad.
Maximum TK 3,00,000.000
Charges
Tenor Min 12 months
Max 36 months
Rate of Interest 14.505p.a -16.00%p.a
Security One personal guarantee (as per list of eligible
guarantors.)
Secured Loans

Target Customer All clients of ABBL.
Purpose To meet personal requirement of fund.
Loan Amount Maximum 95% of the present value of the
security
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Charges Processing fee: TK 1000.00
Tenor Min 12 months, Maximum 36 months
Rate of Interest 13.50%p.a -16.50p.a (subject to type of the
security). 2 % spread must be maintained in
case of own bank FDR.
Security Lien over FDR,BSP,ICB Unit,
RFCD,NFCD,CD accounts etc. one personal
guarantee in case of third party cash collateral
(as per list of eligible guarantors)

Target Customer All clients of ABBL.
security
Charges Processing fee: TK 1000.00
Tenor Min 12 months, Maximum 36 months
Rate of Interest 13.50%p.a -16.50p.a (subject to type of the
security). 2 % spread must be maintained in
case of own bank FDR.
Product Name Personal Overdraft

Target Customer All clients of ABBL
security
Charges Processing fees TK 1000.00
Tenor Revolving with annual review
Rate of Interest 13.50%p.a- 16.50%p.a (subject to type of the
security). 2% spread must be maintained in case
of own bank FDR.
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5.2 Corporate Banking
AB Bank provides complete range of solutions to meet Corporate Customers’

requirements. Its Corporate Banking solutions include a brand spectrum of products and
services backed by proven, modern and technologies.
Corporate Lending
The specialist teams offer a comprehensive service providing finance to large and
medium sized business based in Bangladesh. For more information as to how they might
best meet customers corporate debt needs, the customers need to contact to the Corporate
Head Office.
Structured Finance
AB Bank has a specialist Structured Finance Team who arrange and underwrite finance
solutions including Debt and Equity Syndication for financial sponsors, management
teams and corporate. They also provide corporate advisory services.
They 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.
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 Equity Finance, both onshore & off-shore.
 Corporate Advisory Services.
5.3SME Banking
Considering the volume, role and contribution of the SMEs, AB Bank has been
patronizing this sector by extending credit facility of different types and tenor. As of
now 54% of the bank’s total loan portfolio is segmented to the SMEs which deserves
all out attention in plans, projection 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 Sector in which AB Bank has participated so far:
 Agro machinery
 Poultry
 Animal Feed
 Dairy Product
 Fruit Preservation
 Hotel & Restaurants
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 Garments Accessories
 Leather Products
 Plastic Product
 Furniture : Wooden & Metal
 Ink
 Paint
 Printing & Packaging
 Wire & Cable
 Aluminum
 Cement & Lime Plaster
 Clinics and Hospitals
 Engineering & Scientific Instruments.
ABBL offers the following SME loan products:
I. Uddog loan.
II. Goti loan.
III. Aparajita loan.
IV. Proshar loan.
V. Choto puji loan.
VI. Digun loan.
Large Loan & Project Finance
 In order to cater the demand of client of AB Bank has segmented its loan size. As per
this segmentation any loan over TK 10.00 core falls under the preview of large loan
unit.
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 In AB Bank, there is also a separate Project Finance unit who evaluate the business.
The unit is entrusted to handle the portfolio in a focused manner. AB Bank is always
in front to support establishment of new projects of diverse nature which will help to
broaden the manufacturing arena to generate to employment.
 At the moment AB has participation in 19 syndicated facilities. AB Bank’s exposure

in the ongoing syndication is TK51560.29 lac which is diversified in the following ten
sectors.
SL Sector ABBL Participation

(fig in Lac TK)
1.Textile 9,533.57
2. Micro Finance 3,000.00
3. Cement 7,990.00
4.Energy & Power 11,997.00
5.Telephone (PSTN) 5,500.00
6.Glass 900.00
7.Sugar 900.00
8.Steel Mills 9081.72
9.Paper 1158.00
10.Chemichal 1,500.00
Total 51,560.29
5.4Non Resident Bangladeshi (NRB) Banking
Facilities offered to NRBS
Opening of Foreign Currency Account
AB Bank opens foreign currency Account in USD/GBG/EUR/JPY for NRBs. Foreign

currency can be remitted by the Nationals of Bangladesh living Abroad earned by them as
wage earners or from other sources. The deposit amount can also be used for remittance
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to other countries as per their requirement. Nominee of account holder can also able to
operate this account.
NFCD
AB Bank issues Foreign Currency Fixed Term Deposit in USD/GBP/EUR with different
tenure. Interest is paid in respective Foreign Currency. Rates of interest are published in
daily exchange rate.
Wage Earners Development Bond
These bonds can be issued from the balance of the FC account with the tenure for five
years. Rate of interest is 12% p.a in BDT.
USD Premium Bond
These bonds can be issued from the balance of the balance of the FC account with tenure
for Three years. Rate of interest is 7.5% p.a in BDT.
USD Investment Bond
These bonds issued from the balance of the FC account with tenure for three years. Rate
of interest is 6.5% p.a in USD.
In addition to the above, they also have drawing arrangements with 14 years. Exchange /
Money transfer Remittance Houses all over the globe to facilitate fast, reliable and hassle-
free inward remittance to the expatriate Bangladeshis around the world. They also have
special arrangements to credit beneficiary’s account maintained with them on the same
day thorough extensive real time online network.
Lending Rates
Products Mid Rate Interest Rate W.E.F

October 06,2009
1. Agriculture 13.00% 13.00%
2.Large and medium 13.00% 13.00%
scale industries
3.Small Industries ( Term 14.75% 13.25%-16.25%
Loan)
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4.Working Capital
a)Large and medium 13.00% 13.00%
scale industries
b) Small Industries 14.50 13.00%-16.00%
5.Export 7.00% 7.00%
6.Commercial Lending 13.00% 13.00%
7.Housing Loans 13.00% 13.00%
8.Consumer Credit 16.00% 14.50%-17.50%
9.Credit Card 2.00% per month 2.00% per month
10.Fianance to NBFI’s 13.00% 13.00%
11.Others
1. Cash Collateral- 12.50% 11.00%-14.00%
ABBL FDR
2. Cash Collateral- Other 13.50% 12.00% -15.00%
Banks’ FDR or WDB
3.Women Entrepreneur 10.00% 10.00%

(Awparajita upto TK
50.00 lac)
4.Special Scheme Loans- 14.00% 13.00%-15.00%
SME
5.5Islamic Banking
To provide the Islamic banking services in accordance with the principles of Islamic
Shariah, AB Bank has established Islamic Banking wing and started it’s functioning by
opening fully fledged Islamic banking branch on 23.12.2004. The branch is known as AB
Bank Islamic Banking Branch, Kakrail and is situated at 82, Kakrail, Ramna , Dhaka.
Prominent Islamic Banker Mr. M Azizul Huq joined the Bank as its Islamic Banking
consultant. A dedicated team of experienced Islamic Bankers are working under his
active guidance both at Head office and branch level.
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A component Shariah Council consisting of Islamic scholers, 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 Islamic
Branches 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 wings 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.
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• Al-Wadiah Current Deposit Account.
• Mudaraba Deposit Pension Scheme.
Foreign Trade:
Islamic Banking Wing provides the following services as 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 its service horizon
keeping the necessity of valued clients in view and upholding the principles of Islamic
Shariah.
5.6Investment Banking
Merchant Banking
Custodial Service
Brokerage Service
Future Products
Merchant Banking Wing (MBW)
To expand its horizon, ABBL launched its Merchant Banking operation in the year
2003. As a fully fledged merchant banker, they provide the following services:
1. Portfolio Management.
2. Issue Management.
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3. Underwriting.
4. Corporate Advisory.
5. Private Placement.
The Merchant Banking wing (MBW) of ABBL has made notable progress and is
presently equipped to serve customers’ needs by offering a comprehensive range of
financial solutions. They also have launched Custodial Services with a view to
provide one stop Capital Market services to our valued clients. They understand an
entrepreneur’s need for stability, trust, innovation and creativity required for the
consolidation and growth of investments and endeavors to prosper. The professionals
in MBW with its state of the art integrated computerized system, are always there to
provide their vision, knowledge and service for the success of the customer.
Custodial Service
Customers
Investors who are interested to invest in the Bangladesh Capital market
 Nonresident Bangladeshi. (NRBs)
 Foreign institutional and individual clients.
 Local institution
 Sponsors’ group and high net worth client.
Services
 Safe custody of client securities.
 Foreign trade execution and settlement.
 Share transfer in the name of client.
 Complete the Dematerialization process as per client request.
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 IPO, Private Placement & Right share subscription as per client
instruction with deposit.
 All types of corporate action that includes cash dividend, bonus share and
right share collection.
 Open BO Account.
 Instant information regarding client securities positions as per their

request.
 Quarterly reporting to the client by Custodial Department.
Brokerage Service
AB Bank Foundation (ABBF) is a subsidiary company of AB Bank Ltd having holding

99.60% share of the ABBF. The company was first established under the trust deed
constituted and registered on the 14th day of May 2002. Subsequently the trust by a resolution
of its Board of Trustee in its third meeting held on 29.12.2002 resolved to cancel the Trust
Deed and utilize the trust fund for the foundation of a company limited by guarantee
primarily for charitable purpose. Then the company was incorporated on 3rd day of November
2003 under section 28 of Companies Act 1994, a company limited by guarantee. The
certificate of incorporation is C- 558 (10)/2003.
The ABBF and its activities:
AB Bank Foundation (ABBF) is one of the country’s leading security broker houses of
Dhaka Stock Exchange (member # 201) and Chittagong Stock Exchange (member # 101).
ABBF has started its operation by soft launching on 28th August 2006. Initially, they have
started operation by giving to client of AB Bank Merchant Banking wing. They have already
started operation in full swing in corporate head office and Chittagong. In near future, they
will start their Mohakhali and Agrabad Branch operation.
Services:
1. Brokerage Services
AB Bank’s subsidiary, AB Bank Foundation, which has corporate memberships

on Dhaka and Chittagong Stock Exchange, can act as brokers on behalf of local
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and foreign individual and institutional client to trade in the local capital market.
AB Bank’s Sales & Trading Department will also support brokerage services for
offloading shares through direct listing.
2. CDBL Services as full service Depository Participant (DP)
As a full service depository participant, AB Bank Foundation provides following

services:
A. BO (Beneficial Owner) accounts opening and maintenance.
B. Dematerialization.
C. Re Materialization.
D. Freeze (freeze request and release request) and suspensions.
E. Pledging and confiscation.
F. BO ISIN balances and master maintenance enquiry.
5.7New Products
5.7.1Ogrim Munafa Patra
A depositor may purchase on OMP by depositing the discounted value of the

principal a receipt for TK. 100,000 with a maturity of 12 months (at12% interest
rate) the depositor will have to pay TK. 89,286/- for purchasing the OMP
certificate to any individual, business organization and institution. Simply a
minimum of TK. 25,000/- OMPs shall be available for three, six and twelve
month’s maturity tenures. 12 percent Govt tax and duties are applicable. Loan
facilities will be available at any of the 73 branches of AB Bank.
5.7.2 Be a Millionaire in 3 Years
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The dream of becoming a millionaire is no longer a distant one. Anyone can actually
become a millionaire, that too within a space of three to six years, by opening an AB
Bank Millionaire Scheme Account (MSA)
• Monthly deposit of Installments.
• At the end of the respective term, total savings with interest, after deduction of
Government tax and duties, will amount to One million Taka. Any individual,
business organization or institution can open an MSA. MSAs can be opened for
three, four, five or six- year terms.
Interest Tenor Monthly Gross Income Tax Net Return

Rate (years) Savings Return (Currently
10%)
12.00% 3 23,602/- 1,016,711/- 16,704/- 1,000,007/-
12.00% 4 16,766/- 1,021,748/- 21,698/- 1,000,050/-
11.50% 5 12,836/- 1,025,586/- 25,543/- 1,000,044/-
11.50% 6 10,138/- 1,030,084/- 30,015/- 1,000,070/-
5.7.3Troimashik Munafa Hishab
Any individual, business organization or institution can open a TMH. Interest will be paid
every three months from the date of opening of the account. Interest will be credited
automatically to the designated account.
Time of withdrawal Rate of Interest

Within six months Nil
Between six months Prevailing Saving Bank Rate
Second Year 9%
Third Year 10%
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Chapter – 6
6.0 Marketing Strategies Adopted by AB Bank Limited
A marketing strategy can be defined as the outlines of broad marketing logic by which the
business unit hopes to achieve its marketing objectives and the specific of target markets,
positioning and marketing expenditure levels. It outlines specific strategies for each
marketing mix element and explains how each responds to the threats, opportunities and
critical issues spelled out in the marketing plan.
6.1Understanding Consumer
Understanding customer and customer’s needs and requirements is the guiding philosophy of
marketing. A marketing orientation requires the organization to view its business from the
point of view of its customers. This demands an insight into the wider aspects of customer
psychology and behavior, including what motivates customers, what their attitude and
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perception about the company and its products as well as an understanding of their decision
processes.
6.2 Identifying & Targeting Financial Prospects
In addition to understanding the broader pattern of consumer behavior, the development of an

effective marketing strategy requires AB Bank to understand the differences among
customers and their financial products requirements. This issue of customer differences can
be identified through market segmentation. The benefits of market can be an aid in designing
marketing strategy.
The accuracy of AB Bank’s identification of marketing segmentation contributes to its

competitive advantage since it is one of the conditions of developing an effective marketing
strategy. A number of conditions have been noted to affect the effectiveness of potential
profitability of marketing strategy like measurability, substantiality, accessibility, action-
ability and differentiability of the target. Again ABBL formulates different segmentation on
the basis of geographic or demographic variables.
Segmentation: Bases for segmenting customer
Understanding customer and their needs and requirements are important for developing
marketing strategy. The factors that ABBL emphasize to identify the needs and requirements
are as follows:
For corporate customer
 Financial Strength and credit worthiness.
 Marketing Positioning.
 Reputation and Integrity.
 Industries.
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 Listed Companies.
For personal banking
 Occupation
 Income and propensity to save
 Attitude toward banking
 Market demand
 Geographic concentration.
6.3 Product Differentiation Strategies
Innovation of new products is the main product differentiation criteria that ABBL uses. They
also modify their offerings from that of their competitors. They do this by analyzing the
reports, brochure or with client interview, Central Bank’s information & regulations, lending
rate, deposit rate etc. The main criterion for differentiation is made by the pricing policy
through lowering the lending rate from their competitors.
Other criteria for differentiation are: maturity of products, market demand and geographic
concentration.
Following are the major common criteria for differentiation of financial products in ABBL:
Rank Differentiation Criteria
1. Pricing policy/ Interest rate
2. Maturity of products
3. Market demand /Trend
4. Geographic concentration.
6.4 Channels of Distribution
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Distribution involves a wide variety of activities culminating in the creation of three types of
utility: time, place and possession.
In terms of time, distribution allows the customer to gain access to financial service when it is
convenient for them to buy.
In terms of place, distribution makes products and services available to customers in locations
which are accessible and convenient to them.
With regard to possession distribution provides the customer with access to the product for
consumption or future use. In addition to this, distribution function also provides a means of
effectively communicating with the customers and for customers to communicate with the
Bank.
6.5 Pricing for Financial Products
The pricing of a financial product can appear in many guises: some prices are obvious, some
are not, some are based on monetary value and others are not. For example the price of a
financial product may be the interest rate of a loan, the notice required to withdraw money
from an account, a free charge for advice given and commission paid to an intermediary such
as a broker, the tax paid on a interest earned on saving etc.
6.6 Corporate Social Responsibility
AB Bank has contributed taka 0.5 million to support continuous and smooth functioning of
Mosabbir Cancer Care Centre as part of the Bank’s CSR initiative. The financial assistance
would help the centre to meet necessary day-to-day expenses.
Under Corporate Social Responsibility (CSR) initiative, AB Bank takes pride in joining
hands with Mosabbir Cancer Centre, a non profitable philanthropic organization which aims
at extending professional services in the form of counseling, diagnosis, consultation and
treatment of cancer patients particularly to children suffering from terminal diseases.
The centre has stepped into its 6th year of operation and has rendered services to
approximately 800 poor and helpless cancer patients. As part of corporate philosophy, AB
Bank is always committed to the well being of the society.
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In recent days, AB Bank’s social welfare events have significantly increased the CSR
penetration.
Database Marketing
ABBL has recently started customer database for marketing purpose. ABBL uses database
for marketing of their products
Internet Banking
ABBL has their own website. Internet Banking has already been started. But the operation is
not so much extended. Following are the common features are the common features of
Internet Banking:
 View account balances and transaction history.
 Verify deposits.
 Check loan balances.
 Check loan payment information.
 View interest information.
 Various information regarding products.
Chapter -7
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7.0 Customer Services Offered By ABBL
7.1Credit Cards
In the present context of banking business in the world, Card is the feature of any bank.
Electronic payment system is now ruling the world and some days from now cash
transactions system will turn into a history found only in the text book.
AB Bank Limited is one of the leading first generation private sector commercial banks
with Branch network all over the country. The bank started issuing VISA Credit Cards
from the end of year 2004 as a principal member of VISA International.
Brief description of different features:
Card Conversion & Balance Transfer Plan
“Card Conversion & Balance Transfer Plan” to AB Bank VISA Credit Card will be
extended towards all local Credit Card holders of the market, provided that their “other
banks” credit card is in “regular” state, not in “overdue” state. Cardholders will repay the
approved transferred amounts to AB Bank Credit Card Account in monthly installments
stated in their monthly statements. Other bank credit cardholders having regular payment
history will also be allowed to apply for this facility along with their new AB Bank Credit
Card application form. Customers can convert their other bank card to AB Bank Card and
get interest facility at 19.95% on their outstanding.
Easy Buy
“Easy Buy” installment plan to AB Bank VISA Credit Card will be extended towards all
AB Bank Visa Credit Cardholders. Cardholders can convert any retail purchase done
using AB Bank credit card into an installment scheme where they can pay back the
amount at rate of interest of 19.95% per annum over a tenor ranging from 6 months to 48
months.
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Easy, convenient and affordable
Under the Easy buy program, cardholders can choose own installment plan, ranging from
6 to 48 months
1. Simple procedure, no documentation, no down payment.
2. Available in comfortable payment options of 6 months to 48 months.
3. Process just a call away.
No cash advance fee
No cash advance fee for cash withdrawal from AB Bank ATM booths & Tk. 10 only will
be charged for per cash withdrawal will be charged from other Q Cash ATM booths.
Market rate is Tk. 125 for per cash withdrawal.
Auto bills pay facility
Hassle free monthly payment for AB Bank account holders
Higher transaction limit
AB Bank VISA Card gives the facility to withdrawal up to Tk. 60,000 or 50% of credit
limit (whichever is low)of the credit limit from any ATM VISA logo. Lot more features
are in the pipeline to add more value to satisfy AB Bank customer.
7.2 Safe Deposit Locker
A safe deposit locker with AB Bank is the solution to the customers’ concern. These
safety lockers located at selected branches in cities all over the country. The lockers
ensure the safe keeping of customers’ valuables.
Advantage / Key Benefits
 Wide Availability.
 Lockers available in various sizes. I.e. Small, medium and large with varying
rents.
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 Lockers are rented out for a minimum period of one year. Rent is payable in
advance.
 The rent may be conveniently paid from the deposit account.
 Direct debits for locker rentals from the customer’s account rid the customer of
the hassle in writing out cheques.
Eligibility
An individual (not minor), firms, limited company, association, clubs, trusts, societies etc
may hire a locker.
Nomination for Safe Deposit Locker
• The lockers and their contests can be nominated to people near and dear to the
customer.
• Nomination facilities are available to individual hirer of safe deposit locker.
• In the case of a sole hirer of a safe deposit locker, nomination can be made in favor of
only one individual.
• Where the safe deposit locker is hired in the name of a minor, the nomination will be
made by a person lawfully entitled to act on behalf of the minor.
Terms & Condition
• For obtaining a locker at AB Bank one must be an account holder with AB

Bank.
• Lockers can be allocated individually as well as jointly.
• The locker holder is permitted to add or delete names from the list of person
who can operate the locker and can have access to it.
• Loss of key is to be immediately informed to the concerned branch.
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• For schedule of rentals, the customer needs to contact the branch nearest to
them.
7.3 New MICR Cheque Book
AB Bank has started issuance of new cheque book from June 01, 2009 as per Bangladesh
Bank guideline. One can conveniently collect new cheque books from his Account Opening
Officer of different branch of AB Bank. As per Bangladesh Bank instruction they have
implemented MICR coded cheque book from June 6, 2009 which will be customized by the
Bank. MICR is a process of printing cheques using magnetic ink and special fonts to create
machine- readable- information. It is the first step towards electronic cheque clearing process.
The new MICR coded cheque book will facilitate:
• Quick processing and faster cheque clearing time.
• Prevent cheque related fraudulent activities.
In this regard, the bank would request the customer to collect the new cheque book on before
July 31, 2009.
Bangladesh Bank Clearing House will not honor existing chequebook leaves after April 30,
2010. However, they may continue to use their existing chequebooks to withdraw cash over
the counter or to transfer funds to another customer of AB Bank Limited at any of their
branches.
They would therefore request the customer to submit their requisition slip duly signed by
them from their old chequebook for new Personalized MICR- Encoded cheque book will be
supplied within 3 (three) working days on receipt of the requisition.
7.4 AB Bank VISA Electron Debit Card
If the customer is maintaining an account with any of the branches of ABBL, then they are
able to have ABBL Visa Debit Card. Only thing they need to do is, visit any branch and fill
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up the application form and submit it. Then they will receive their card within 7 working
days.
Tips for usage
Card Activation
• After receiving the card, the customer need to sign the acknowledgement slip and
send it to Card Division or any Branch of ABBL or call Card Division for activation.
• The customer needs to put his signature on the signature panel at the back of his card.
Caution during making transaction
• The customer should not let his card be taken out of his sight at any merchant outlet to
prevent possible misuse.
• After using the card at a merchant outlet, customer need to ensure that the card
returned to him is his card.
• Before signing the sales slip cheque at the amount charged, the customer needs to
retain the copy of the sales slip of all transactions until they appear in his card account
statement for his future reference.
PIN Maintenance
• The customer should destroy the PIN mailer after memorizing the PIN.
• The customer should write the PIN on the card or keep the PIN inside the wallet.
• The customer should change the PIN every month.
For Lost/ Stolen Card
If the card is lost or stolen, the customer simply needs to call AB Bank’s Help Desk at
9558510. He can also report the loss by fax to ABBL, Card Division immediately.
Lost Debit / Credit Card
For lost Debit / Credit Card customer need to email to the following address:
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cardsteam@abbank.com.bd or he can call at Card Division at 9558510. His card will be
replaced within 4-5 working days and will be couriered to his mailing address he has
provided in his card application form.
Address Change
For address change in the Card customer need to e mail to the following address:
cardsteam@abbank.com.bd or he can call at Card Division at 9558510. His new address will
be updated in the Card Management System.
Lost Cheque Book
In case of loss or destruction of any cheque book containing unused cheque leaves, the
customer will have to inform to the bank immediately. The written confirmation of this
matter should be duly acknowledged by the Bank Branch.
Signature Change
In case of signature change one will need to fill up bank’s prescribed signature change form
(available in any branches) or one can request of change of signature by letter with the latest
copy of passport size photographs.
Account Closing
• One can close his accounts at any time by giving notice or submit Account Closure
form (available of any AB Bank’s Branch) the branch where he has opened his
account.
• On closure of the account, the bank will pay the credit balances of the account and
any interest due to the account.
AB Bank A/C to A/C Fund Transfer
Of course one can transfer your fund to another account through his or her request letter.
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Chapter-8
8.0 Customer Relation Management
Relationship marketing encompasses activities of attracting, maintaining and enhancing

customer relationships with the organization. Building relationships with customers is more
than just a marketing function. It is an organizational philosophy that impacts on operations
and processes, employees, customer service and quality. ABBL has a very clear & precise
idea about CRM. They try to follow some important aspects of CRM. These are as follows:
8.1 Customer Retention
ABBL gives emphasize on retaining customers on the basis of existing customer’s base.
Customer retention can also be made by effectively managing customers’ complain. The
customers are retained through:
 Focus on existing customers.
 Superior products & quality service.
 Providing new facility.
 Technological innovation.
 Loyalty building & satisfaction.
 Quick response to customer needs and problems.
Managing Customer Complaints
5
Customer complaints are identified by a number of ways: such as customer complain box,
written form, verbal form. The interviews show that the customer complaint boxes are
generally not used by the customers. They usually make complaint about their problems
telling the relevant person in the bank. Complaints are managed by taking quick actions.
Complain Cell
AB Bank Limited is committed to provide the highest quality services to meet customer
needs. If anyone wishes to compliment, offer suggestions or make a complaint then he is able
to let them know what they do that is of benefit to customers, what they could do better or
perhaps differently.
Any issue brought to their attention will be treated in a confidential manner and discussed
only with the people who need to be involved. Customers can provide feedback in a number
of ways. He can simply complete the feedback form attached with the brochure and drop it to
complaint box of the branch or send it directly to the complain cell or head office.
Complain can also be made via webpage or alternatively one might like to speak to member
of “Complain Cell” directly through telephone +88-02-9560312 Ext:160.
AB recognizes the right of the customer to complain when felling dissatisfied with the service
of the bank. They undertake, wherever possible to resolve complaints and to prevent similar
complaints from occurring.
The policy objective is to provide procedure to control the processing of complaints as way
of improving services to customers and enhance the public image of the bank, ensuring that
requests are acknowledged courteously and investigate efficiently and effectively.
Relationship Managers
The concept of Relationship Manager (RM) is being now used in ABBL but the job
description of RMS is not well structured as they should. The job of RM is generally
performed by the branch officers. The interviews revealed that the main job of Relationship
Managers to reach out to the customers both corporate and personal, to make sure that the job
is done in a systematic manner within the client’s time frame. The relationship managers for
5
corporate banking are very much important because during the relationship the bank attempts
to solve the problems of client organization and satisfy its need through a series of
transactions.
8.2 Promotional Activities for Financial Products
Promotional performs a number of functions and roles, including informing, persuading and
educating individual or groups, works harmony with the other elements of the marketing mix
enabling the acquisition of new customers to take place, retention of existing customers,
improvements of staff morale and projection of a company image.
There are several ways in which ABBL communicates with its customer and prospects. The
specific combination of promotional method is known as “Promotional Mix”. The mix
includes advertising, sales promotion, personal selling, publicity and public relation, direct
mail, direct response advertising.
ABBL uses advertising media in a greater extent, and uses personal selling in a limited
extent. Public relations for promotional purpose are used in medium extent. Analysis on
promotional tools used by ABBL shows that advertising are widely used method of
promotion than personal selling. The following are shown the ranking on three mediums of
promotion:
Rank Promotion Tools Used by Banks
1. Advertising.
2. Personal Selling.
3. Public Relations.
8.2.1 Advertising
ABBL uses newspaper as the promotional campaign and it is used to communicate about the
new offer or any new news about existing product and service of the banks. TV commercials
are now widely vehicle by ABBL. Out- door advertising media like bill board, brochure etc
are being used by the bank in medium extent.
Percentage Use of Advertising Media
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100% Newspaper
88% Outdoor Advertising
50% TV commercial
8.2.2 Personal Selling
Personal Selling in ABBL is not used in an extensive or structured form. The role of personal
selling is taken by the relationship managers but mainly by the officers in branches. Visiting
corporate and personal banking etc are some job done by personal selling.
8.2.3 Public Relation
The trend of public relation in marketing is growing over time. ABBL uses public relations
activities to promote the bank’s image as well as their products.
8.3 Branding Image, Symbol & Logo
Brand image and symbol are used in the form of a name or symbol or a combination of both
to differentiate their offerings from those of their competitors. ABBL uses the brand image
through an attractive slogan and by providing the quality service. ABBL has Brand Manager.
Priority Banking, Wealth Management counseling etc. are some slogans used by the bans to
create brand image.
AB Bank believes in modernization. The bank took a conscious decision to rejuvenate its past
identity- an identity that the bank carried as Arab Bangladesh Bank Limited for twenty five
long years. As a result of this decision, the bank chose to rename itself as AB Bank Limited
and the Bangladesh Bank put its stamp on November 14, 2007.
The bank decided to change its traditional color and logo to bring about a fresh approach in
the financial world, an approach which like its new logo is based on bonding and trust. The
bank has developed its Logo considering the contemporary time. The new logo represents our
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cultural “Sheetal Pati” as it reflects the bonding with its clientele and fulfilling their every
need. Thus the new spirit of AB is “Bonding”. The logo of the bank is primarily “Red” as
Red represents velocity of speed and purity. Our new logo innovates, bonding of affiliates
that generate changes considering its customer demand. AB Bank launched the new logo on
its 25th Anniversary year.
Chapter -9
9.0 Performance of AB Bank Limited
IT @ ABBL
Business Automation
Being the first private sector bank of the country, AB Bank has prided itself in the quality of
the banking services it provides by taking conscious decision to employ the best available
banking technology to serve the customers which now stands over 2.00,000 in all. Core
banking system Kapiti was employed alongside the manual banking operations ever since
1984. Later on in the tear 2004, Misys core banking solution was selected for implementation
to take AB in to super highway of real time online banking of today. Beginning, 2005 Misys
implementation was taken-up and in the 1st Phase seven (7) Branches were upgraded to the
new core banking system.
For the year 2006, in line with the growth strategy, service quality improvement and
availability were put into focus whereupon coverage of remaining Branches under Misys
became all the more important. Bank took up a massive project of migration, connectivity
and standardization of processes and hardware throughout. A core team was formed for this
purpose and the theme of the team was “Yes We Can”.
Software products from Misys PLC (Running)
Core Banking Software: Equation Banking System
5
Misys Equation is a fully integrated, real time, multi currency retail banking solution that
helps organizations deliver competitive products and excellent service to customers. It
supports consumer and corporate banking as well as treasury operations on a single platform.
From End Software: Equation Branch Automation
Equation Branch Automation is designed to support customer facing staff within a retail
branch banking environment. The Equation Branch Automation system is already tightly
integrated with the Equation core banking server and provides ready-to-run functionality to
support cashiers, personal bankers and relationship managers.
Equation Branch Automation allows online, real time transaction processing for the Equation
Banking server with immediate access to account and transaction information and
verification of availability of funds.
Reporting software: Web form
Web form applies the latest web – based technology to the Equation banking system. Reports
are automatically captured are delivered to users as web pages over the bank’s internal
network, removing the need to print and distribute paper versions of reports. Report data is
available as web pages, as excel spreadsheets and for analysis using multi dimensional Pivot
Tables. Reports can also be distributed automatically as e mails, enabling people who do not
have direct access to the system to be kept informed with the latest data.
Web form will capture existing reports, run and deliver user-defined reports, and provide an
enquiry system for any previous business data, making it an invaluable management
reporting tool. Using the Pivot Tables built from Equation reports and associated databases;
users can filter and manipulate the data to isolate key elements of information for analysis
purposes. Once they have generated the required view of the data, users can drill down to see
details of the underlying accounts.
Software products from Misys PLC (Implementation Phase)
Trade Finance Software: Trade Innovation
TI has been designed with advance workflow management to streamline the entire transaction
lifecycle and the overall workflow of the trade finance operation. TI allows the bank to define
5
service agreements (SLAs) for each customer. The bank can apply either customer groupings
(e.g. gold, silver, bronze) or bi- lateral agreements for individual customers.
The factoring capability in TI is optimized for trade receivables financing available. Finance
is calculated on the agreed, discounted total of eligible receivables available on any one day.
Drawings are processed at the expressed at the express request of the customer.
Internet Banking Software: Integrated Financial Module
Equation IFM offers powerful features for business customers. Customers can administer
their own user communities, with different levels of access to customer and account
information and transactions. Each user can have a pre- defined authorization limit,
simplifying control and reducing risk.
9.1 Financial Performance of ABBL at A Glance
Million Taka
December 31 2008 2007 % Change
Gross Interest Income 7,366.85 5,269.90 39.79

Net Interest Income 2,030.69 1,439.28 41.09
Operating 4,298.39 3,325.29 29.26
Profit(PBP&T)
Net Operating 3,600.62 2,817.99 27.77
Profit(PBT)
Profit after Tax (PAT) 2,300.62 1,903.49 20.86
Deposits 68,560.47 53,375.35 28.45

Loans & Advances 56,708.77 40,915.35 38.60
Total Assets 84,053.61 63,549.86 32.26
Shareholder’s Equity 6,722.51 4,511.59 49.01
NIM % 2.75 2.58

Non Interest Income to 66.98 69.09
operating Income (%)
Cost Income Ratio 62.57 28.59
Return on Equity- ROE 40.96 42.19
5
(%)
Return on Assets-ROA 3.12 3.41
(%)
Advance Deposit Ratio 82.71 76.66
(%)
Capital Adequacy Ratio 12.84 10.75
NPL as % of Advances 2.99 4.31
Earnings per Share 103.18 85.37
(TK.)
9.2 Operating Performance of ABBL
Board of directors of AB Bank Limited (ABBL) takes immense pleasure in presenting the
25th Annual report of the bank. It is also the privilege of the board to present the audited
accounts of the bank for the year ended 31st December, 2006 and the Auditor’s Report
thereon.
AB Bank reached a milestone on 12th April, 2010 when AB reached 28 years of its journey
which started with a single Branch operation at Karwan Bazar, Dhaka way back in 1982. AB
being the pioneer in private sector banking in Bangladesh will be the first to achieve this
milestone. Over the years, AB Bank has contributed in many ways towards development of
the private sector banking in Bangladesh. Many of the big industries in different fields of the
economy has AB’s name attached and AB Bank remains a proud development partner of
these industrial houses over the years.
AB’s Sponsors set a vision for the Bank which reads, “To be the Trendsetter for innovative
banking with excellence and perfection”. Throughout these 28 years AB Bank raised the bar
for itself through service, initiatives, products, customer support and performance towards
that visionary path.
At the beginning of the year 2005, Board took the mission for the year as “a year of
consolidation and growth”. In line with that, year 2006 was identified to be the year of
“financial re structure and growth”.
Being a financial institution, AB Bank is exposed to the entire gamut of economic

developments and activities both within and outside the country.
5
9.3 Online Banking
Any new technology in banking sector has its own effects because new technology indicates
the improved operation and performance of the sector. Introduction of new technology has an
extensive effect on customers. So the quick adopters of new technologies have an edge over
others in the industry. AB Bank uses new technology in different department, which
improves the quality of services of that department.
Cash department involves Receipts and Payments process manually. But now ATM is used
which has affected the cash department in some extent. Before ATM and online technology
ABBL was able to provide only 8 hours services for payment. Customers were enforced to
wait in huge lines for getting payments. To check the total amount of account, customer had
to give application to the bank.
After ATM AB Bank Ltd. can provide 24 hour banking to its customers so that customers can
withdraw money at any time. Now customers have no need to wait for the payment in long
queues. When customer withdraws money a mini statement of his account is shown to the
customer. ATM technology reduces the extra burden on the cashier and now bank don’t need
extra cashier and clerks. If anyone needs to verify one’s bank account balance, one just need
to take the bank’s balance as shown online, subtract any outstanding checks and add any
outstanding deposits.
The remittance department transfers the funds from one bank to other bank and from one
place to another place. ATM and online banking has also effected the remittance department
and increased its efficiency.
Before ATM if customer wanted to transfer his fund to other bank account or other branch
account. Then he had to submit a cheque which takes a lot of time for clearance process
before online banking to transfer the funds to other branches or to other banks.
After ATM banking customer can transfer money from his account to any other account at
any time anywhere in Bangladesh without waiting for the clearance process. Through online
banking bankers has no need to send cheque or money through demand draft or telegraphic
transfer etc. The banker can access any branch and transfer funds to it within no time. In
online transaction the account holder has account in another bank. The account holder sent
the amount to his account. Online transaction is made only ABBL to ABBL. So that they can
5
transfer the amount, they can cash the amount; they can find the balances & receive the
statement of his account in another branch.
The Advantage of Online Banking
First and foremost, online banking is very convenient. It will allow one to pay bills and make
transaction anytime during the day and the week. The bank will never close because can
access it through laptop or computer. So no matter in which country of the world he ca go
online and handle his finance.
Secondly online banking is very fast, effective and efficient. Over the internet, one can make
transaction that are typically executed and performed at a much faster pace than at ATM’s.
Online banking services also give the option of handling several different bank accounts from
one site itself.
Most online banking sites are compatible with programs like Microsoft Money and Quicken,
which makes management of assets more effective.
5
Chapter -10
10.0 Findings of the Report
ABBL has already been engaged in societal marketing. They do this by engaging publicity
through contribution to the charitable issues, creating public awareness on some important
issues and sponsorship for many events, ideas and education. Some of these activities are:
 Donation to flood affected.
 Anti dowry movement.
 Stipends for students.
 Rehabilitation for acid burned etc.
Sport sponsorship is used by ABBL in the live telecast of cricket and a few games and offers
a large viewing figures and opportunity of targeting a wide audience. This broadcast
sponsorship is intended to create popularity of the bank.
AB Bank has been awarded prestigious Century ERA Award at the 10th BID Quality
Convention in Geneva. Companies are of 43 countries from America, Europe, Asia and
Africa attended the Convention.
President and Managing Director of AB Bank Kaiser A. Chowdhury received the award from
the Executive President of Business Initiative Direction (BID) Jose E. Prieto on March 10,
2008 at the Intercontinental Geneva Convention Hall.
AB Bank received the award in the Gold category in recognition of its “commitment to
quality, leadership, technology and innovation.” Among the outstanding companies including
AB Bank at this year’s convention were Emak (Egypt), Golden Meditech Company (China),
Jordan Securities Commission (Jordan), Kreka (Greece).
Jose E. Prieto said at the award presentation ceremony, “ the awarded companies are symbols
of commitment to leadership, technology and innovation which makes them models for other
companies of their sector.”
5
10.1 Recommendation & Conclusion
This report has focused on the marketing strategies of financial products in ABBL with a
view to identify what they are now doing in this regard and what are the future prospects of
marketing of financial products.
During the time of preparing this report, I have noticed the following issues which need
special attention by relevant authorities:
 Marketing is being practiced by ABBL is not so much structured.
 Usually no pretest is used to market for any financial product.
 Innovation of new financial products is rare case rather they hardly upgrade their
offerings on the basis of some changes in interest rate, maturity, market demand.
 Any new product and existing or modified offerings are communicated largely by
newspaper. TV commercial is used in a limited form.
 Internet banking has been used in a limited form.
 ABBL can start to provide the service of SMS banking.
The study shows that there is a great potential in marketing of financial products which will
make ABBL more effective. ABBL is now feeling the greater importance of marketing
because of increased competition, technological innovation and government regulations.
They are trying to create a vision of marketing with a large number of promising issues like:
 Customer Relationship Management.
 Branding.
 Electronic.
 Banking.
 Tele- banking.
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 Product differentiation attributes, etc.
Thus the changing environment is creating a changing demand for marketing strategies and
by developing an effective marketing strategy ABBL can retain market shares and
profitability as well as competitive advantage. Finally, it can be concluded that although
financial product marketing of ABBL is in an early stage, it has a good potential for
development, as ABBL is now aware of its performance.
5
Bibliography
I. www.abbank.com.bd
II. www.efinancial/news.com
III. En.wikipedia.org/wiki/Marketing Strategy
IV. Principles of Marketing (11th edition). By Philip Kotler & Gary Armstrong.
V. Strategic Brand Management (2nd edition)- Kevin Lane Keller.
VI. AB Bank Ltd. Annual Report.

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Internship Report AB Bank

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Internship Report

General Banking & Marketing

“Marketing Strategies of Financial Products &

BBS, BRAC University.

Student ID: 06104020.

BBS Department,BRAC University.

Syeda Rownak Afza

BRAC Bussiness School

Subject: Submission of Internship report.

This report on “Marketing Strategies Of Financial Products & Customer Services of AB

Rezwan Bin Mostafa

I am also thankful to HR Division of AB Bank Limited for giving me the opportunity to

AB Bank limited was incorporated in Bangladesh on 31st December 1981 as Arab

1.0 Introduction of the report

1.1 Background of the Study

The report is a reflection on my experience when I was an internee in ABBL, Principal

• To get acquaintance with the general operations of ABBL.

• To know about different types of financial products offered by ABBL.

Specific purpose of the study includes

• To objectively observe the operations of AB Bank Ltd in general and the

• To know about their product differentiation strategy.

1.3 Nature of the Study

Exploratory research provides insights into and comprehension of an issue or situation. It

1.4 Scope of the Study

 Branch specific variable.

 Bank specific variable.

 Layout of the branch.

 Departments in the branch.

 ATM Online banking.

 Services provided by ABBL.

1.5 Methodology of the Report

 Lack of published marketing information.

 Lack of back hand information with stuff.

 Lack of access to data.

1.7 Literature Review

The private commercial banks, operating in Bangladesh, constantly focus on understanding

• Presentations by managers, practitioners and partners outlining strategies and

• Discussions around the presentations, as follow- up to inter-visit communications,

• Demonstration of tools or systems.

2.0 Background of AB Bank LTD.

"To be the best performing bank in the country"

2.2 Vision Statement:

2.3 Change of Name:

New Logo of ABBL

Effective 01 January 2008, ABBL changed its Logo as well.

2.4 Corporate Information of AB Bank Limited:

Name of the Company

27th February 1982

BCIC Bhaban, 30-31, Dilkusha C/A

Dhaka 1000, Bangladesh.

2.6 Objectives of AB Bank Limited:

2.7 Historical Review of AB Bank Limited:

2.8 Current Profile of AB Bank Limited:

2.9 Management Aspects:

2.9.1 Executive Committee:

2.9.2 Audit Committee:

2.9.3 Management Committee:

2.10 Management Hierarchy of AB Bank Limited:

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

Senior Assistant Vice President

Assistant Vice President