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AB Bank Final Report

AB Bank Final Report

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  • 1.1) Background of the study:
  • 1.2) Objective of the study:
  • 1.3) Rational of the study:
  • 1.4.1) Primary Sources:
  • 1.4.2) Secondary Sources:
  • 1.5) Limitation of the study:
  • 2.2) Historical Background of AB Bank Limited
  • 2.3.1) Vision Statement:
  • 2.3.2) Mission Statement:
  • 2.4) Change of name:
  • 2.5) Birth OF the Logo
  • 2.6) Company Philosophy
  • 2.7.1) DHAKA DIVISION :
  • 2.7.2) Chittagong Division :
  • 2.7.3) Khulna Division:
  • 2.7.4) Raishahi Division ;
  • 2.7.5) Svhhet Division :
  • 2.7.6) Barisal Division:
  • 2.8) ORGANOGRAM:
  • 2.9) Performance of AB Bank
  • 4.3) Deposit Scheme:
  • 4.4.1) Saving Account (SB):
  • 4.4.2) Fixed Deposits Account (FDR):
  • 4.4.4) Special Term Deposit (STD):
  • 4.5) Procedure of Closing Account:
  • 4.6.1) Local Remittance Department:
  • 4.6.2) Foreign Remittance:
  • 4.7) Foreign Exchange Department:
  • 4.8.1) Local Regulations:
  • 4.8.2) International regulations of foreign exchange:
  • 4.9.1) Letter of Credit (L/C):
  • 4.9.2) Importer Department
  • 4.9.3) Steps Involved in Import Procedures:
  • 4.9.4) Money transfer:
  • 4.10) Types of Cheques collected by clearing Department:
  • 4.11) Clearing House:
  • 4.12.1) Process Flow Chart Clearing (Inward):
  • 4.12.2) Process Flow Chart Clearing (Outward):
  • 4.12.3) Cheque returns:
  • 4.12.4) FCD Department:
  • 4.13) Functions of the department;
  • 4.14) Loan and Advance department:
  • 4.15) SME Loan:
  • 4.19.1 BACK-TO-BACK L/C:
  • 5. Recommendation
  • 6. Conclusion




Internship program is an external dimension of career development for a business graduate. At the end of the graduation program (Academic part) the students of Faculty of Business and Economics are sent to different organizations to get some real life experience as internees. Usually this program has duration of three months. Throughout these three months of internship program the internees are being assigned some assignments, which help them to learn the attitude of working in the organization. At the end of the internship program the internees are suppose to submit an internship report and this report submission is the last step that brings a successful end up of graduation program from a Faculty of Business and Economics. Internship program of Stamford University mostly focuses on the field that a student is concentrating. Moreover this program gives a student the opportunity to practice his knowledge of theory in the field of practical life. This internship report is based on the author’s internship experience in AB Bank Ltd, Karwan Bazar Branch, Dhaka .

1.1) Background of the study: A bank is a financial institution whose main objective is the mobilization of fund from surplus unit to deficit unit. In the process of acceptance & provision of loan, banks create money. This characteristics feature sets Bank apart from other financial institution. A Bank can influence the money supply through lending & investment. A Bank is also an economic institution whose objective is to earn profit through exchange of money & credit instruments. Commercial bank is one, which is concern with accepting deposits of money from the public, repaying on demand or otherwise & withdrawal on demand or otherwise & 2|Page

employing the deposits in the form of loan & investment to meet the financial needs of business & other classes of society. Bank is very old institution that is contributing toward the development of economy & an important service provider in the modern world. In the globalization & free market economy, banks provide their service worldwide & compete with other all over the World. The banking sector is one of the major sectors in Bangladesh economy & can be divided mainly in to four categories - Nationalized bank, Local private bank, specialized financial institution & foreign banks. In Bangladesh, the journey of private commercial banks is not older. The banking in Bangladesh has passed three decades through different policy environment & comprises central bank at the apex. The country's central bank, Bangladesh Bank, controls & monitors the banking industry. At percent, there are 4 nationalized, 5 are specialized, 30 are local private commercial banks & 10 are foreign commercial banks. AB Bank Ltd. is one of the prominent thirds generation banks in the banking sector.

1.2) Objective of the study: The primary objective of this report is to partial fulfillment of MBA degree & achievement of the knowledge about how bank mobilize their surplus fund to the deficient units of AB Bank Ltd. There are some other important objectives of this report are as follows: • • • • Acquiring experience for future working life. To describe the customer service process of AB Bank Ltd. To analysis the bank position of deposits mobilization. To get knowledge about the products & services offered by AB Bank Ltd.


Practical desk work.3) Rational of the study: The internship program is a partial requirement of the BBA program of Stamford University Bangladesh which constructs & builds a bridge between the real life state of affairs & theoretical concepts. 1. Bangladesh Bank report. 1. That's why I had to join in the AB Bank Ltd (Karwan Bazar Branch) as an internee & my internship report is based on the practical experience that I gained from there. which were taught in the class room.1) Primary Sources: • • • • • Personal interview with branch officials or executives.2) Secondary Sources: • • • • Annual reports of AB Bank Ltd. 4|Page .4. Getting information from face to face dealing with the client.4 Methodology and Sources of Data: • Sources of data : The required data & information to prepare the report have been collected from the following sources: 1. Web site of ABBL. Published or unpublished or personally collected data from officers. Customer files study in the account opening & loan div 1.• To analysis how well manage a customer. It is a great opportunity for me to get the practical knowledge of the corporate world. Interviewing the persons who are treated experts in respective to the assignment.4.

• • • Files & documents of the branch.5) Limitation of the study: AB Bank Ltd. Some of the major limitations are pointed below. To prepare the report I faced some problems & limitations. That's why they do not have sufficient time to co-operate with me. Employees are so busy with their work. Different textbooks. is a large financial institution. therefore it is not possible to find out the true picture within a short period. 1. That may causes reduction in the quality of my report. Those limitations are unavoidable for me. Some articles on banking sectors. 5|Page . • • • Time constraint is one of the major limitations to know all the inside information of the bank. Bank has no formal guidelines for internship.

Organization Profile 6|Page .

across time. India and also established a wholly owned Subsidiary Finance Company in Hong Kong in the name of AB International Finance Limited. 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. one foreign Branch in Mumbai. It continues to remain updated with the latest products and services. the first private sector bank was incorporated in Bangladesh on 31st December 1981 as Arab Bangladesh Bank Limited and started its operation with effect from April 12. The asset base of AB grew by 32% from 2007 to stand at over Tk 8. During the last 27 years.400 cr as at the end of 2008. AB Bank has thus been able to keep their consumer’s and client’s trust while upholding their reliability.1)OVERVIEW OF THE ORGANIZATION: AB Bank Limited. In spite of adverse market conditions. The Bank’s consolidated profit after taxes amounted to Taka 230 cr which is 21% higher than that of 2007.2)Organization Profile of AB Bank Limited 2. The Bank showed strong growth in loans and deposits. concluded the 2008 financial year with good results. AB Bank Limited has opened 74 Branches in different Business Centers of the country. 1518 cr ie. Deposit of the Bank rose by Tk.45% while the diversified Loan Portfolio grew by over 30% during the 7|Page . 1982. considering consumer and client perspectives. AB Bank is known as one of leading bank of the country since its commencement 27 years ago.. AB Bank Limited which turned 27 this year. 28.

strengthening and expanding its Islamic Banking activities. which like its new logo is based on bonding. AB Bank launched the new Logo on its 25th Anniversary year. Debit and Credit Cards (Local & International). as red represents velocity of speed and purity. ATMs.year and recorded a Tk 1579 cr increase. The Bank maintained its sound credit rating in 2008 to that of the previous year. Consumer Loans. Structured Finance for Corporate. The bank has developed its logo considering the contemporary time. Women’s Entrepreneur.898 cr indicating a growth of over 40% in 2008. 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. It also ensures creating higher value for its respected customers and shareholders. The Bank decided to change its traditional color and logo to bring about a fresh approach in the financial world. As a result of this decision. 2007. The new logo represents our cultural “Sheetal pati” as it reflects the bonding with its clientele and fulfilling their every need. and to bring millions into banking channels those who are outside the mainstream banking arena. AB Bank commits to nation to take a lead in the Banking sector through not only its strong financial position. Remittance Services. The Logo of the bank is primarily “red”. but also through innovation of products and services. Treasury Products and Services. an approach. Thus the new spirit of AB is “Bonding”. Our new logo innovates. 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. the bank chose to rename itself as AB Bank Limited and the Bangladesh Bank put its affirmative stamp on November 14. Investment Banking. Internet and SMS Banking. bonding of affiliates that generate changes considering its customer demand. specialized products and services for 8|Page . Foreign Trade Business handled was Tk 9. Innovative products and services were introduced in the field of Small and Medium Enterprise (SME) credit. The bank has focused to bring services at the doorstep of its customers. AB Bank believes in modernization. and trust.

the General Public Shareholders hold 49. India. AB is recognized as the people’s choice. professional competence & employment of state of art technology.NRBs. It envisages enabling customers to get banking services within the comfort of their homes and offices. the first private sector bank under joint venture with Dubai Bank Limited. 1982. on individual sponsor shareholder of more then 10% of its total shares. Priority Banking. However. AB Bank Limited has opened 73 Branches in different Business centers of the country. 2.2) Historical Background of AB Bank Limited AB Bank Limited.76 million respectively. As of December 31. Myanmar respectively & also established a wholly owned subsidiary finance. Since beginning. and Customer Care. i. During the last 27 years. one foreign Branch in Mumbai.57% shares are held by the Government of the People's Republic of Bangladesh. The Bank has successfully completed its automation project in mid 2008. AB Bank has continuously invests into its biggest asset. Their satisfaction is AB’s success. 2006.” The bank has introduced Dress Code for its employees. all the dresses are consisted with the unique AB Bank logo. the authorized capital & the equity (paid up capital & reserve) of the bank are BDT 2000 million & BDT 2582. Bangladesh Sponsor Shareholders. The sponsorshareholder holds 50% of the share capital. the human resource to drive forward with its mission “to be the best performing bank in the country. the bank acquired confidence & trust of the public & business houses by rendering high quality services in different areas of banking operations.43% & the rest 0. Male employees wear designed ties and females wear Sharee or Salwar Kamiz. Dubai Bank Limited (name subsequently changed to Union Bank of the Middleast Limited) decided to off-load their investment in AB Bank Limited with a view to concentrate their activities in the UAE in early part of 1987 & in teams of Articles 23 A & 23B of the Articles of association of the company & with the necessary approval of the relevant authorities. catering to the satisfaction of its cliental. the shares held by them in the Bank were sold & transferred to Group "A" Shareholders. UAE incorporated in Bangladesh on 31st December 1981 & started its operation with effect from April 12. 9|Page .e. two Representatives Officer in London & Yangon.

AB Bank Limited.M. 2. Dhaka Registration No Chairman Managing Director Manager of Mirpur Road Branch Authorized Capital Paid up Capital Directors Number of branches Deposit Loan 10 | P a g e : C281461 (1992)/95 : Mr. which is precisely 53. Head Office. Chy. Dilkusha Commercial Area.76 Million :8 : 67 : Tk. the bank made a significant headway in respect of import. On account of Foreign Trade.63 Million . Masarraf Ali Beg : TK.M.384.25 million which places the bank in the top tier of private sector commercial banks of the country. A. 27. 519. thereby raising a total portfolio to BDT 31289. export & inflow of foreign exchange remittances from abroad.N. To facilitate cross border trade & payment related services. 1994.361. 21. On the Advance side.Wahidul Haque : Kaiser A Chowdhury : Mr. the Bank has been able to achieve 46.800 Million : TK. 30-31.Company in Hong Kong in the name of AB Bank International Finance Limited. BCIC Bhaban.99 million. 1981.78% higher then the preceding year.3) CORPORATE INFORMATION AT A GLANCE (Information as per last Annual Report 2009) Name of the bank Status Date of Incorporation Inauguration of the Jubilee Road Branch : AB Bank of Bangladesh Limited : Public Limited company: : 31December.44 Million : Tk. : 26th July .32% increase. the Bank has correspondent relationship with over 220 international banks of repute across 58 countries of world. the premier sector bank of the country is making headway with a mark of sustainable growth. The overall performance indicates mark of improvement with Deposit reaching BDT 42076.

import permits other securities directly or thorough jointly with one or more banks or financial institution.bd :www. To establish maintain. 6. To receive.3) CORPORATE MISSION OF THE AB BANK LIMITED (ABBL) 1.bd 2. borrow or raise money on deposit.Number of Employees Telephone Telefax No of foreign Correspondences/Bank SWIFT code E-mail Web site : 1525 :( +8802)956 0312 :( +8802) 956-4122-23 : 350 : ABBLBDDH : info@abbank. To provide for safe deposit vaults and safe custody of valuables of all kinds.com. including underwriting. travelers cheques. 4. shares bonds. 5. managing and distributing the issue of stocks. loan or otherwise.com. To carry on the business of buying and selling gold and other valuable species. To act as agents for the sale and purchase of any stocks. transact and undertake all kinds of investment.abbank. To carry on the business of dealers in foreign exchange including buying and selling of foreign exchange. merchant and financial business. and discounting of export documents and all other matters related to foreign exchange business. carryon. shares or securities or for any other monetary or mercantile transaction. dealing in foreign currency notes. 3. debentures. 2. granting and issuing of letters of credits. 11 | P a g e . upon such terms as the company may approve and to give guarantees and indemnities in respect of all debts and contacts. circular notes and negotiating.

Corporate.3.6) Company Philosophy The motto or the philosophy of the Bank is "Bonding Generation". The Bank endeavor to deliver a quality that makes every transaction a pleasurable experience. 2.4) Change of name: Arab Bangladesh Bank Limited changed its name to AB Bank Limited(ABBL) with effect from 14 November 2007 vide Bangladesh Bank BRPD circular letter no.3. This bonding reflects the new spirit of AB Bank. AB Bank feels that.-10 dated 22 November 2007. 2.7. Whether in Personal. To form.2) Mission Statement: “To be the best performing bank in the country” 2. Meeting the demand of the bank's discerning customers is not the sole objective. if they can meet maximum clientele requirements in less time with efficiency. or any holding company or trust to carry on business of an investment trust company. manage.5) Birth OF the Logo The coat of arms of the new logo is inspired by traditional "Shital pati " or "Sleeping mat". then they will be able to accomplish a successful business in the 12 | P a g e . To conduct the business of banking in its branches and abroad. To act as official liquidator and receiver. 10. join or subscribe to any syndicate.Prior to that shareholders of the bank approved the change of name in the Extra-Ordinary General Meeting held on 4 September 2007. Treasury or Trade transactions AB Bank Limited is committed to provide the best.1) Vision Statement: “To be the trendsetter for innovative banking with excellence & perfection” 2. The knit and the pattern of interlace in the new logo that echoes the intricate weave of Shital pati symbolizes bonding. To act as executors and trustees of wills. settlements and trust deeds of any kind made by customers and other matters related thereto VISION & MISSION 2. 9. 8.

modern and efficient services. Karwan Bazar 8. Dhanmondi 15.2)Chittagong Division : 1. 2. 7. Motijheel 16. Kakrail 5. Pagla 14. Bhairab Bazar 6.AB Bank has remained a bridgebuilder between generations for the past 26 years through its reliable. Chandra 12. Mohakhali 19. Madhabdi 11. Islampur 2. Gulshan 21.7. Thus they can guarantee the excellence in banking to their valuable customers.7.world of banking. Agrabad Chaumuhani Khulshi Comilla Lohagara Bahaddarhat Cox's Bazar Boalkhali 13 | P a g e . Bandura 2. 6. Board Bazar 9. Uttara 23. 4. Joypara 3. Jinjira 24.1) DHAKA DIVISION : 1. 3.7) Branch Location : 2. Their main objective is .they want to provide every single customer service available in today's banking procedure for their clientele. North South Road 10. Rokeya Sharani 20. Nawabpur Road 4. Mymensingh 22. Principal Branch 17. New Elephant Road 7. Mirpur 13. Narayanganj 25. 2. 8. 5. Imamganj 18.

6) Barisal Division: 1 . 1 . Jhikargacha 3.4) Raishahi Division. Feni 13.7.3) Khulna Division: 1.7.5) Svhhet Division : 1 . Moulvibazar 2. Khulna 6. Jessore 5. CD A Avenue 2. Tajpur 5. Naogaon S.7.Chapai 5.Rangpur 4. Garden Tower 3.Bogra 2. Export Processing Zone (EPZ) 10. Sitakunda 14.Boroikandi 2. Port connecting Road 11.Benapole 2. Dargahgate 6.7. Brahmanbaria 12.9.Barisal 14 | P a g e . Nawabganj 6. Sreemongal 4. Kushtia 4. Saidpur 2.Satkhira 2.


retained earnings and other reserve.26 571.2.96 2677. proposed issue of dividend.75 743. share premium. proposed cash dividend.4.1 Analysis of capital structure Capital structure of AB Bank has changed from year to year.14 878.1.1 Authorized Capital (TK) In Million 6000 3000 Year 2009 2008 2007 2006 2005 Paid Up Capital (Tk. statutory reserve. The components of the capital structure are paid-up capital.9) Performance of AB Bank 2.) In Million 3373.85 2000 1500 800 16 | P a g e . Authorized and paid up capital of AB Bank: Table no.

at the year of 2008 it is reached at tk. but in the year 2006.2 Reserve fund and other reserve In the year 2005 the total reserve was tk.85 000 571.33 in million.30 2702.1.47 in million.53 in million.53 1456.75 3373.14 2006 000 743.3980.26 3000 2677.95 2072. Table-02 Year 2009 2008 2007 2006 2005 Amount ( tk.95 in million and in 2009 it was tk.30 million. So in the year 2007 was tk. in Millions) 3980. 826. it was increased on tk.4. 2702.33 17 | P a g e .96 2005 2007 2008 2009 s Figure 01s: Authorized and paid up capital of AB Bank 2.47 826. 2072. 1456.ChartTitle Authorized Capital Paid up Capital 6000 800878.

53 1456. in Millions) 83087. The present strategy is to increase the deposit base through maintaining competitive rates of profit and having low cost of funds. Deposit Position of AB Bank: Table no-3 Year 2009 Amount of Deposit ( tk.2 Deposit Deposit is one of the principal sources of fund for investment of commercial banks and investment of deposit is the main stream of revenue in banking business. The total deposit of the bank stood at Tk. This growth rate may be termed as a remarkable achievement for the bank.47 826.60%.33 2702.57 million as on December 2007 against Tk.4.13 18 | P a g e . 4500 4000 3500 3000 2500 2000 2072.02 million of the previous year which is an increase of 18.95 3980. 35. 546.3 o l m n e r u g i F 1500 1000 500 0 2005 2006 2007 R eserve 2008 2009 Figure 02s: Reserve Fund 2.41.032.Reserve fund and other reserve position of AB Bank Ltd.

Table no-4 Year 2009 2008 2007 2006 2005 Amount (TK In Millions) 16369.95 19 | P a g e .00 0.000.35 68560.00 10.000.47 83087.000. 14.94 8884.02 27.94 million as on 31 December 2008 showing an increase of tk. 11395.361.23 million with a growth rate of 27.2008 2007 2006 2005 68560.35 35032.44 90.00 80.02 27361.4.00 60.30 million as on 31st December 2009 against tk.30 11395.91%.00 4060.00 2005 2006 2007 D epos it 2008 2009 Figure 04: Deposit Position 2.47 53375.44 53375.000.3 Investment (General) Total investment of the bank was tk.972. 16369.00 35032.13 o l M n e r u g i F 30.00 20.000.60 6301. The Bank Follows appropriate Investment Risk Analysis while approving investments to Customer in order to maintain quality of assets.00 50.00 70.

28 4060.30 million (excluding investment in subsidiary) million while it was tk.60 6301.30 11395.6 6301.95 20 | P a g e .94 8884.28 4060. 16369. 11395.Investment Activities of AB Bank 16369.95 2005 2006 2007 2008 2009 Figure 05: Investment Activities (General) Investment in Share and Securities The size of the investment portfolio as on 31st December 2009 was tk.94 8884. Year 2009 2008 2007 2006 2005 Investment Activities of AB Bank: Amount (TK In Millions) 16369. The portfolio comprises mainly of Bangladesh Government Islamic Investment Bond and Shares of different companies.3 11395.94 million in 2008.

18000 16000 14000 12000 10000 8000 6000 4000 2000 0 2005 2006 2007 AxisT itle 2008 2009 e l t T s i x A Figure 06: Investment Activities (Share and Securities) 21 | P a g e .

13% Sav ings. 25% Sector wise credit portfolio Retail Loan 11% Financial Institution 2% Others 20% Agriculture 1% Trade Finance 37% Export 2% Industry & Infrastuctural Credit 27% 22 | P a g e .Deposit mix Others. 18% FDR. 44% CD.

Indudtry & Infrastructural Credit
Real Estate 27% 11% 4% 7% Trasport

4% Print & Packaging Cement Food & Bev erage 17% 14% 16% Iron &Steel Textile & RMG Others

Five Years Financial Performance at a glance of AB Bank Ltd.
Table no-08
Sl. No. 01. 02. 03. 04. 05. 06. 07. Particulars Authorized Capital Paid-up Capital Reserve Fund Deposits Investment(General) Investment(Shares & Bonds) Foreign Exchange Business 2005 1000.00 878.85 569.99 28319.21 26046.34 1633.03 72940.00 2006 3500 1713.76 810.88 35032.02 32641.27 2233.25 96175.10 2007 3500 2142.20 1134.64 41546.57 40195.24 2457.72 117900.14 2008 3500 2677.75 1532.55 57586.99 53637.68 2894.02 156434.57 2009 10000 3373.96 2092.97 73835.46 68609.91 2169.44 162604.61

23 | P a g e

a) Import Business b) Export Business c) Remittance 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Investment as a % of total Deposit No. of Foreign Correspondent Shareholders’ Equity Total Capital ( Tier I +Tier II) Total Assets Total Liabilities Total Contingent liability Total Risk weighted Assets Total Fixed Assets Operating Income Operating Expenditure Profit before provision and tax Profit before Tax Net Profit after provision and tax Profit earning asset Non profit earning asset Capital adequacy ratio Dividend a)Cash b)Bonus c)Right Share

41432.00 31285.00 223.00 91.97% 222 1912.42 2179.81 33716.70 31804.28 15941.53 25681.45 166.98 3433.39 2257.63 1175.76 1063.30 555.34 28743.43 4973.27 8.49% 30 0 30

49596.70 46234.60 343.80 93.18% 246 3111.69 3467.37 41793.54 38681.86 18994.09 32401.36 178.43 4967.57 3588.89 1378.67 1199.49 650.29 35161.48 6632.07 10.70% 25 0 25 1R:2

61399.40 55790.42 710.32 96.75% 256 4042.53 4569.56 51503.03 47460.50 22632.65 40706.47 200.70 6407.96 4499.76 1908.20 1618.80 930.84 42357.65 9145.38 11.23% 38 7 25

78540.49 76465.62 1428.46 93.14% 278 4989.20 5763.89 68446.46 63457.26 26070.57 53428.99 293.53 8356.82 5838.43 2518.39 1989.55 1096.63 56192.52 12253.94 10.79% 26 0 26

83911.51 76240.77 2452.33 92.92% 333 6717.21 7718.89 86213.37 79496.16 30109.11 69058.87 381.98 10383.62 7201.84 3181.78 2802.12 1694.10 69006.56 17206.81 11.18% 35 0 35 1R:2

24 | P a g e

26 27 28 29

Cost of fund Net asset value per share Earring per share Price earnings ratio

8.08% 217.61 48.61 8.10

9.17% 181.57 43.38 7.74

9.07% 188.71 34.76 9.09

9.52% 186.32 40.95 7.85

9.09% 199.09 50.21 7.52

25 | P a g e

Function of ABBL 26 | P a g e .

Then I have moved on towards the strategic. General banking operation like: General Accounts Opening Section. 27 | P a g e . Bank also offers different loan facility in pre-shipment & post-shipment level. Local Remittance department. Loans & credits department. Here banks offer opening a letter of credit (L/C) Indifferent forms. The organizational structure is included in terms of organization culture & quality of work life. International business is unthinkable without the facility of the L/C. they have to rely on their skilled & experienced workforce. Fixed Deposits A/C. Foreign trade department plays a major role in the international business. Saving A/C. Procedure closing A/C. I discussed about General Banking. Requirement of opening current A/C. Cheque clearing & bills department section. It incorporated in Bangladesh on 31st December 1981 & started its operation with effect from April 12. Rate of interest on Deposits. 1982. provide the exporter the guarantee of payment of the merchandise exporter & the importer the title of goods. Deposits section.0) GENERAL BANKING ACTIVITIES OF AB BANK LIMITED" The AB Bank Limited is one of the leading private commercial bank in the country. operational and legal issues of the ABBL to justify the report. its prospect & necessity.AB Bank As they are facing the challenges on way to further improving the profitability of the bank.4. Collection section.

Such as: • • • • • 28 | P a g e Opening of different types of account. Transfer and closing of account. it came to the observation that general banking section is divided with five areas. Enquiry of account. Issue of checkbook. Checking The Signature of the client.4.1) SECTIONS OF GENERAL BANKING During my practical orientation in AB Bank. Various tasks are performed in this section. Karwan Bazar Branch. . Banker customer relationship begins through this section.2 General Banking Section Account Opening Remittance Bills and Clearing Cash Section Mail Receive and Dispatch 4.2) ACCOUNT OPENING SECTION One of the vital sections under general Banking is the account opening section. These are: 4.

100.• Locker opening & closing.000 with a maturity of 12 months (at 12% interest rate) the depositor will have to pay Tk.286/. please contact your nearest AB Bank branch. for purchasing a Receipt for Tk. • How much does one have to invest? Simply a minimum of Tk 25.3) Deposit Scheme: Ogrim Munafa Patra (May 29. 29 | P a g e . AB Bank Ogrim Munafa Patra (OMP) allows you to maximize growth potential through this unique certificate. • What is the rate of interest? 12 percent. 4. one approach AB Bank to purchase OMP? Loan facilities will be available at any of the 73 branches of AB Bank. For details. • Who can open an OMP? Any individual. Loan/Overdraft facility up to 90% of the deposited amount will be available. six and twelve month’s maturity tenures. 89.for purchasing the OMP certificate. business organization and institution. 2008) Let your money grow with us. Govt tax and duties are applicable. • How does the OMP work? A depositor may purchase an OMP by depositing the discounted value of the principal sum: For example. • How does.000/• What is the tenure of the OMPs? OMPs shall be available for three. • Can one obtain loan against OMP? Yes.

You can actually become a millionaire.044/1. 7667/12. will amount to One million Taka. At the end of the respective term.Be a millionaire in 3 years (May 29. • • • How does this MSA work? Monthly deposit of installments. or six-year terms. total savings with interest.000.50% 11. business organization or institution can open an MSA.602/16. after deduction of Govt.050/1.000.007/1000. 8367/10. 5437/3.000. by opening an AB Bank Millionaire Scheme Account (MSA). • What is the tenure of the MSA? MSAs can be opened for three. five.00% 12. tax and duties.00% 11. 6987/25.50% Tenor (Years) 3 4 5 6 Monthly Savings 23.070/What is the annual interest rate for MSA? . 2008) The dream of becoming a millionaire is no longer a distant one. 0015/Net Return 1. four. that too within a space of three to six years. 7047/21. • Any individual. • Millionaire in 3 years Interest Rate 12. 1387/30 | P a g e Income Tax (Currently 10%) 16.

021. Just dial AB Bank short code 16207 and text our desired service requirement.bd Web: www.com.com.abbank. 025.Gross Return 1. contact with nearest AB Bank Branch Cell: 01199 AB Bank (222265) Email: smsbanking@abbank. No hassle. 5867/1. 016. 2010) We can do our day to day banking on our mobile at our own convenience 24 hour a day. no queue and easy to use. 030. 7487/1.bd Send all the SMS to 16207 Transaction Alert Transaction Alert Messages will be sent from 01819249868 Subscriber may limit the number of Debit and/or Credit Transaction Alerts PIN = Personal Identification Number (4 digits confidential password reset by you Services Balance Enquiry (For Primary/Default Account) Balance Enquiry (For Different Account) Hotkey / Keyword BAL PIN BAL PIN ACCTSerial SMS Example BAL 1234 BAL 1234 1 or 2 or 3 31 | P a g e . To register our mobile phone we can follow the simple processes illustrated below to avail the SMS Banking Service: For free registration. 0847/- New Product AB Bank SMS Banking (September 10. 71 17/1.

• Attestation by embassies or high commissions in the respective countries if the company is incorporated outside of Bangladesh. TIN certificate. where that is located. But now individual account is closed for the by the order of Bangladesh Bank. Account must be open only on the name of business. He have to need a introducer. national ID card photocopy or passport or other employees ID card or certificates from the ward commissioner or union council chairman certificates. 32 | P a g e . • Proper information as of personal account & directors & account operators. For opening a sole proprietorship account.4) Current short term deposits (CD) In future Current Account is opened for both individuals & business concerns including non-profit making organization. place of birth. present & permanent address of the business owners. • Certificate of the returns submitted to the register of joint stock companies. one copy nominees photograph. The requirement of sole limited company account is same as of sole proprietorship account plus: • Certificate of incorporation. • Resolution of the board of directors. who has a existing account with ABBL. proprietorship valid trade license photocopy. account holders recent two copies color passport size photograph . • Memorandum & articles of association. date of birth. Detail of occupation or employment & source of wealth or income. his true names.Mini Statement (For Primary/Default Account) Mini Statement (For Different Account) Check Linked Accounts PIN Change PIN Reset Fund Transfer Mobile Top UP (For Registered Mobile Number) Mobile Top UP (Different Mobile Number) Mobile Bill Payment Help STM PIN STM PIN ACCTSerial ACC PIN PIN OLDPIN NEWPIN PIN RESET FTR PIN ACC1 AMOUNT ACC2 TOP PIN AMT TOP PIN AMT MobileNO BILL PIN AMT MobileNO HELP STM 1234 STM 1234 1 or 2 or 3 ACC 1234 PIN 1234 8596 PIN RESET FTR 1234 1 250 2 TOP 1234 500 TOP 1234 500 01XXXXXXXXX BILL 1234 500 01XXXXXXXXX HELP 4. the account holder must provide his organizations names . what type of organization that is.

place of birth. Usually customers are allowed to open this A/C for a certain period. private school. deed of those organization & others documents as per types of organization. For opening a saving account a persons must provide his true names.2) Fixed Deposits Account (FDR): The Bank offers higher rates of interest on such deposits. FDR with different maturity offered by the bank can be shown by the Following table: Maturity Interest rates Up to 10 lac Over 10 lac to 50 lac 8.50% 9. He has to need an introducer.3) Monthly Saving Deposit (MSDS): 33 | P a g e . present & permanent address.Also different club.50% 11.1) Saving Account (SB): Saving account always opened by individuals for saving purpose of deposited amount over a period of time. co-operative society. 4.00% 9.00% FDR for 12 months & 11% above 4. college & madrasa. Detail of occupation or employment & source of wealth or income.4. parents names.00% 11. voter ID card and passport or other employees ID card or certificate from the ward commissioner or union council chairman certificates. trustee board can open current as per provide their board resolution.4. one nominees photograph. account holders three copy color photograph.50% FDR for 1 months FDR for 3 months FDR for 6 months 8% 9. Interest on saving account is 6.00%.50% 10.50% 9. who has an existing account with ABBL.25% 9. date of birth. 4.4.25% Above 50 lac 8.

Type of Remittance: a) Pay order (PO) b) Demand Draft (DD) c) Telegraphic Transfer (TT) Pay Order (PO): Pay order is an instruments. which is used to remit money with in a city through banking channel the instrument are generally safe as most of them are crossed . And unused cheque leaves should be destroyed by the authorized officer of the bank.1) Local Remittance Department: Banks have a wide network of branches all over the country & offer various kinols at remittance facilities to the public.4) Special Term Deposit (STD): These types of account also known as special notice deposit & STD account provide interest for minimum balance TK. Obviously the bank charges commission on the basis of bills amount.4.It remove the fear of stealing. This account must deposit with in 10th banking days of every month & if any one fail to deposit then deposit next with current month installment by provide some fine.6) Remittance Department: 4. 34 | P a g e . The customer should be asked to draw the final check for the amount standing to credit of his account less the amount and other incidental charge & surrender the unused cheque leaves.00%. 4. swift.5) Procedure of Closing Account: A customer may close out his/her account any time submitting to the branch. 4. Remittance are safe .Monthly saving deposit accounts open for the businessman & for the general people who wants to save money. constitute current liability on the part of a Bank.6. The instrument is basically used for transfer & payment. 4. inexpensive & simple. Difference between pay order & Demand Draft is in terms of place only PO is used for remittance money with the city where as DD is used for within the country too. The account is debited for the account closing charge etc.5 lac to above & interest rate is 5. Demand Draft (DD): Demand draft is many popular instruments for remitting money from one corner of country to another.

Both parties should have account as money is for transferred.C etc.2) Foreign Remittance: The word "REMITTANCE" means transfer of funds from one place to another either within the country (local Remittance) or from one country to other country globally (Foreign Remittance) by means of different recognized modes. which is: . No instruments is given for TT. D. Inward Foreign Remittance: Inward foreign remittance covers purchase of foreign currency in the form of foreign T. for specified purposes for which authorized dealers (AD's) have the authority to initiate remittances without prior reference to the central bank.Inward Foreign Remittance Outward Foreign Remittance: An outward foreign remittance in involves foreign trade & is as such subject to the approval of Bangladesh Bank with the expectation of remittances.T. The TT issuing bank instructs its counterpart by telex message regarding remittance of money. The foreign remittance is divided into two (2) parts.6. Types of Foreign Remittance: • Foreign Demand Drafts (FDD) • Mail Transfer (MT) • Traveler's Cheque (TC) 4. T.7) Foreign Exchange Department: 35 | P a g e . Purchase of foreign exchange is to be reported to Exchange Control Department of Bangladesh Bank.Telegraph Transfer (TT): Telegraph Transfer is one of the fastest means of transferring money from one branch to another or from one to another.D & bills.Outward Foreign Remittance . 4. Sent from abroad favoring a beneficiary in Bangladesh.

8. There is also an international court of arbitration to solve the international business disputes. influencing our foreign exchange transactions. which are being followed by all the member countries.2) International regulations of foreign exchange: There are also some international organizations. Components of Foreign Trade: Foreign Trade mainly divided into three wings. import & remittance business. • Sometime CCI&E issues public notice for any kind of change in foreign exchange transaction.8.1) Local Regulations: Our foreign exchange transactions are being controlled by the following rules & regulation. ICC has issued some publications like UCPDC. & URR etc. Bangladesh bank published two volumes in 1996. This is compilation of the instructions 4. URC.8) Regulation for foreign 4. Few of them are discussed bellow: • International Chamber of Commerce (ICC) is a world wide nongovernmental organization of thousands of companies. Foreign trade is the means & methods by which rights to wealth in another country's currency. Trades among nations are a common occurrence & normally benefit both the exporter & importer. .Trade refers to the process or mechanism by which the currency of one country is converted into the currency of another country. • Ministries of commerce issues export & import policy giving basic formalities for import & export business. • Foreign Exchange Regulation Act 1947. 36 | P a g e . They are as below • Import • Export • Foreign Remittances 4. Transfer of goods & services from one country to another country against foreign exchange. • Bangladesh Bank issues foreign exchange circular from time to time to control the export. It was founded in 1919.

(UCPDC-500. through its 124 member countries. This organization has vital role in international trade.1) Letter of Credit (L/C): Letter of Credit may be defined as an arrangement or guarantee issued by a bank at the request of the customer to make payment to or order of the beneficiary or authorized another bank to effect such payment or to pay. which is usually the foreign correspondent of Importer's bank through which the L/C is advised to the supplier. the organization has been abolished & replaced by W. through its 124 member countries.9. The Confirming Bank. General Agreement on Tariff & vital role in international trade. he becomes the Negotiating Bank. in addition. Facilitating the trade with foreign country is the most important among those services the key instrument which facilitates this trade is L/C (Letter of Credit). 4. The Negotiating Bank: The Bank that negotiates the bill of exporter drawn under the credit is known as Negotiating Bank.9) Foreign Exchange Mechanism Foreign exchange department plays significant roles through providing different services for the customer.O.T.O) is another international trade organization established in 1995. 4. 1993). If the intermediary bank simply advises/notifies the L/C to the exporter without any obligation on its part. The Accepting Bank: 37 | P a g e . If the Advising Bank also adds its own undertaking to honor the credit while advising the same to the beneficiary. becomes liable to pay for documents in conformity with the L/C's terms and conditions. The Advising Bank: It is the bank in the Exporter's (Normally the exporter's bank). provided that the terms and conditions of the L/C are complied with. Trade (GATT) was established in 1948.T.• World Trade Organization (W. it is called "Advising Bank". accept or negotiate such bill of exchange against stipulated documents. after completion of it's 8th round. he becomes the Confirming Bank. If the advising bank is also authorized to negotiate the bill drawn by the exporter.

1998 to June 30.9. 2002. 38 | P a g e . So. & Governments in Bangladesh. The importers are asked by their exporters to open letter of credits so that their payment against goods is ensured.A Bank that accepts time or unasked drafts on behalf of the importer is called an Accepting Bank. Personal importer: If the importer is insisting to import goods from the abroad for his need this importer called personal importer.3) Steps Involved in Import Procedures: *** Procurement of IRC from the concerned authority *** Signing purchase contract with the seller. Commercial importer: If the importer is insisting to import goods for Commercial purpose then it is called commercial importer. Industrial importer: If the importer is insisting to import goods for industrial purpose then it is called Industrial importer. Classification of importers: Goods are being imported for personal use. The existing Import policy (1997-02) has come into effect from June 14. The latter bank is known as Reimbursing Bank. The Issuing Bank can also be the Accepting Bank.9. then arrangement is made to reimburse the negotiating bank for the amount to be paid under from some other bank with which the Issuing Bank maintains his account. The Paying Bank and the Reimbursing Bank: If the Issuing Bank does not maintain any account with a bank that will be negotiating the documents under a L/C. firms. 4.2) Importer Department Understanding: Imports are foreign goods and services purchased by consumers. 1950 the Government of Bangladesh formulates the Import policy through Ministry of Commerce. 4. Import Policy: Under the import and export control Act. commercial purpose or there are three kinds of importers such as: industrial use.

000 Western Union Agent Locations in over 200 countries and territories world wide.the world's largest network of its kind. he is in a position to make shipment of the goods.S.S. Through Western Union Money Transfer Service. Millions of people have confidence on Western Union for sending money to their friends and family. 4. is the number one and reliable money transfer company in the world. The issuing may also request the advising bank to confirm the credit. U. *** After making shipment of goods in favor of the importer the exporter/s submits the documents to the negotiating bank for negotiation. *** The advising bank advises/informs the seller that the LC has been issued.A. reliable and convenient way to Send money transfer: Western Union Financial Services Inc. Transfer Cheque: 39 | P a g e .A. only by visiting any branches of AB Bank Limited in Bangladesh. AB Bank Limited has set up a Representation Agreement with Western Union Financial Services Inc.*** Requesting the concerned bank (importer's bank to open an LC (irrevocable) on behalf of the importer favoring the exporter/ seller/ beneficiary *** The issuing bank opens/ issues the LC in accordance with the instruction/ request of the importer and request another bank (advising bank) located in seller's /exporter's country to advise the L'C to the beneficiary. if necessary.10) Types of Cheques collected by clearing Department: 1. This modern Electronic Technology based money transfer company has earned world wide reputation in transferring money from one country to another country within the shortest possible time. *** As soon as the exporter/seller receives the LC and is satisfied that he can meet LC terms and conditions.4) Money transfer: Western Union a fast. 4. Bangladeshi Wage Earners can send and receive money quickly from over 280. U.9.

This procedure is wasteful of time and incubersome and risky. 4. deposit cheques with the drawee banks for credit to its account. 4. it may result in lying up the bank can maintain account with the paying banks (practically of the local banks). Besides. 3. In our country clearing house is organized by the Bangladesh Bank (state bank of Bangladesh) at the different big cities. *The most efficient method of collecting and paying such cheques is that in which these cheques are exchanged by representatives of the various banks. Local Bills Collection Cheques (LBC): Local bills collection cheques are those cheques which are collected and paid by two different branches of a bank situated in the same city. the collecting bank can receive the amounts of cheques from the paying banker is any of the following manners: * It can send its representative with the cheque to each of the following banks and collect cash. A particular house/place under the control and supervision of the central bank of the country where representatives of the member banks / scheduled banks/ assembles/meet together for settlement of their respective banks receivables and payables. * Scrutiny receipt by the authorized officer. * Receiving and scrutinizing the cheques and other deposit instruments. Clearing Cheques: When the payee or endorsee (whoever deposits cheque for collection) and the drawer of a cheque maintain accounts with different banks. * Affixing the stamps. Common procedure for all kind of cheques etc. 40 | P a g e . from themselves into a "member of clearing house" and the fixed meeting place are called a "clearing house". who meet a fixed place at fixed hours and make the settlement through controlling banks. Outward Bills Collection Cheques (OBC): OBC cheques are those cheques.Transfer cheques are those cheques which are colleted and paid by the same branch of ABBank. It sits on all working days. *Frequent transportation of the currency. The method avoids the risk of considerable sums of the money most of the local banks. The banks. and the pay-inslip at the counter. which are collected and paid by two different branches of same or different bank situated in the outstation. but it has all the other disadvantages of the first. so joining.11) Clearing House: Where inter-bank receivables and obligations are settled. 2.

The depositors name should be given on the larger portion of the pay-in-slip. Customer should use separate deposit slip for transfer. • Outward Clearing:When a particular branch receives instrument drawn on the other bank within the clearing zone and those instruments for collection through the clearing arrangement is considered as outward clearing for that particular branch. * Title of the account. 5. & clearing cheques etc.12) Types of Clearing. The instrument is checked for any apparent discrepancy and is compare with the particulars noted in the pay-in-slip and its counter foil. 12. LBC & clearing house. In case the payee's name on the crossed instruments may be accepted but only from customers well known to the bank and after obtaining an indemnity.* Returning the counterfoil to the depositor. 7. The instrument is checked for any apparent discrepancy and is compare with the particulars noted in the pay-in-slip and its counter foil. LBC. 6. *Separate the cheques into transfer. 4. * Total amount in words and figure. 2. 4. 8. Scrutiny of the pay-in-slip (Deposit-slip) & cheques: 1. 11. the following should be checked – * Date of deposit * Account number. The instrument is checked for any apparent discrepancy and is compare with the particulars noted in the pay-in-slip and its counter foil. In case an order instrument is being deposited in second payee's account guarantee may be obtained from the second payee and is attached to the pay-inslip. 3. amount and the drawee bank's name. • Inward Clearing:41 | P a g e . * The cheques number. On both the counter-foil and the deposit-slip. The instrument is checked for any apparent discrepancy and is compare with the particulars noted in the pay-in-slip and its counter foil. The amount noted should be the same as the amount of the instrument and the amount in words and figure should be same. The instrument is checked for any apparent discrepancy and is compare with the particulars noted in the pay-in-slip and its counter foil. 13.

12. (8)Preparation of schedule branch wise & bank wise & signed. 42 | P a g e . (5)Entry into the Outward Register.2) Process Flow Chart Clearing (Outward): (1)Receipt of the instruments with the paying-in-slip (2)Scrutiny of the instruments & paying-in-slip & affixing Received Seal (3)Affixing Special Crossing Endorsement & clearing Seal on the back of the instrument. (3)Entry into Inward Clearing Register (4)Sending the instrument to respective department for posting Preparation of single credit voucher & IBCA of honored cheques / instruments (5)Preparation of reason memo if any dishonor cheque/instruments (6)Hand-over the IBCA & dishonor instruments if any to messenger. (6)Separation of the instrument from the paying-in-slip. (4)Return of the counterfoil to the depositor with seal signature. (9)Preparation of clearing house book & signed by the officer. (7)Filling the schedules and statements in the respective files 4. (10)Tally the total of clearing house-book with the total amount shown in the clearing register.When a particular branch receives instruments which drawn on themselves and sent by the other member bank for collection are treated as inward clearing.12.1) Process Flow Chart Clearing (Inward): (1)Receipt of the instrument from messenger (2)Scrutiny of the instrument & tallying the amount of the schedule & that of the instrument. (11)Preparation of the debit Voucher (IBDA) by debiting Local Branch. 4. (7)Classification of the instrument first bank wise & then branch wise.

* Advice/ intimation not yet received.3) Cheque returns: Reasons for returning cheques: * Insufficient fund/balance exceeded. 4. differ from booklet.13) Functions of the department. * Account closed. ** To maintain all transaction through double entry system in 'Cash.(12)Sending the instrument. 4. * Cheque post dated /cheque out of date. *Present through collection basis.12.12. *Not drawn on us /please send on our concerned branch. *Drawer signature differs/illegible/required. for posting./folio no. (15)Preparation of Debit Voucher if any instrument returned dishonor. 4. (13)Filling/Recording all office copies. *Alteration/mutilation requires drawer's confirmation. * Amount in words and figures differs.4) FCD Department: FCD department is the nerve center of bank. ** To maintain record in General ledger for different heads of affairs. * Warrant no. * Date incomplete /wrong/missing. all departments of the branch send their daily transaction statement to the accounts department. * Clearing house /crossing stamp missing. * 7 day's notice required. 43 | P a g e . **To maintain record in subsidiary ledger for only suspense and sundry accounts. Total transaction per day is recorded in accounts dept.CumDay Book'. clearing house-book along with IBDA to the Local office through messenger. schedule./advice no. * Payment stopped. * Payee's endorsement required /irregular. (14)Releasing the credit vouchers to respective dept. * Signature and seal required. * Please present after 2/3 days.

Cash credit. AB Bank also classified loans and advances according to this comprehensive Loans: 44 | P a g e .e. For this reason. House building loan. There are several types of credit that the bank offers for the customer. ** To record daily IBTA (Inter branch transaction account) Extract.14) Loan and Advance department: Loan and advance department is the heart of bank. It indicates.e. Handling 'load and advance' is the major function of bank. overdraft. ** To prepare supplementary from transfer book. The major source of Bank's income comes from loan and advance. **To maintain salary disbursement register. ** To prepare statement of provisional income for the month. Project loan etc. Proper credit management is a crying need of a bank. expenditure & subsidiaries. This section is crucial for the bank because of the associate risk and profit potential. loan is considered as a part of advance despite of the above difference. ** To prepare statement of income for everyday **To prepare statement of expenditure for everyday.Loan general. **Keeping al vouchers after the transactional period.5or 10 or 15 year etc) Such as . discount etc. Difference between loan and advance: Loan: It refers to loan term credit i. In comprehensive sense.**‘To provide Statement of affairs' which includes everyday assets and liabilities position.a specified sum of money lent by a bank to customer. Advance: it refers to short term credit i. ** Weekly & monthly statement of affairs with income. usually for a specified rate of ordinary interest (calculated by taking 360 day as a year). ** To prepare consolidated statement of provisional income & expenditure for the month ** To prepare salary statement for every month. ** Half-yearly Schedule Bank Statements-3 (SBS-3) ** Monthly Schedule Bank Statements-1 (SBS-1) **Quarterly Schedule Bank Statements-2 (SBS-2) **Monthly comparative statement 4. 'Money lent by a bank for less than one year' Such as . Bank loan or bank advance is a form of finance. ** To prepare statement of provisional expenditure for the month.g. "money lent by a bank for more than one year (e. **To maintain transfer book for IBTA.

d) Loan against trust receipt (LTR): LTR is also a temporary loan and allowed to the customer against their application on the basis of only trust which is generally built on good customer-banker relationship. these loans are repayable in installments. The importer has to keep the goods in bank's custody for getting this loan. when the advance can't be classified into any category. import bills are handled over to the importer who will clear the goods from the custom authorities by making payment duty.Under the loan system. credit is given for a definite purpose and for a predetermined period. incidental charges etc called general loan. Under the scheme the clients may secure loan facilities at easy installments to procure household amenities. Limit of the amount of the loan depends on the customer banker relationship. b) House Building loan: In order to solve financial incompatibility to make a house. 1. It meets household needs of service holders: Furniture/ TV/ Refrigeration & others house-hold durables. Generally. Period of loan is maximum 5 years. Normally. LIM may be created at the request of the importer while he is not in a position to take delivery of import bills by making payment of entire bank dues. the bank offers this loan to middle class people.00 lac and term is 2 years. Its Credit Ceiling is Up to tk. e) Consumer finance scheme: The Scheme aims at improving the standard of living of the fixed income group. After sanction of LTR. it is considered as 'Loan General'. it is usually for a single purpose where the entire amount may be required at a time or in a number of installments within a short period of time. f) Lease finance scheme: 45 | P a g e . VAT and other charges. some major loans of the bank are describes as under: a) Loan General: When an advance is made in lump sum repayable either in fixed monthly installments and no subsequent debit is ordinarily allowed expect by way of interest. c) Loan against imported merchandise (LIM): LIM is a temporary loan and allowed against imported goods.

tax payment under the scheme.00 Lac and Term is at least 6 month but not more than 3 years. Generally two type of overdraft is exercised in the bankSOD (FO): It is allowed against financial obligation for promotion of economic and business activities. h) House renovation loan: The purpose of the loan is to help genuine house or flat owners (not developers) to undertake repairing or renovation works for better living or increased rental income. Admission of Children. I) Personal loan: The loan serves the purpose of meeting emergency financial expenses of service holders such as Medical treatment. Interest is calculated and charged only on the debit balances on daily product basis. may avail of the lease facilities to procure industrial machinery (without having to purchase it by down payment) with easy repayment schedule. g) Small business loan: This loan is introduced for smooth running/ expansion of business of small entrepreneurs who are honest.An entrepreneur. 5. such ah advance is called an overdraft. 5. 'Credit ceiling' of the loan is Up to tk. Credit Ceiling of the loan is Up to tk.00 Lac and 'Term' is 5 year.1. sincere & promising. Exam fees etc. The clients also get special rebate in their income. Purchase of banks. under this scheme.00 Lac and 'term' is 2-5 years. Overdrafts: When a current account holder is permitted by the banker to draw more than what stands to his credit. Its 'Credit Ceiling' is Up to tk. Items leased out to the new/ existing industries to procure machines for the industries. regardless of the account balance'. SOD (GE): It is allowed to the traders for business promotion and economic activities. Cash Credit: 46 | P a g e . Maternity. This type of loan diversifies bank's lending with the requirement of the time. ' it is an automatic coverage by the bank of all checks presented against the firm's account. Marriage.

projections and forecasting. for each customer. possession of goods passes to the creditor or bank. 4. 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. This type of credit is allowed to the traders and industrial borrowers for promoting trade and commerce and industries.15) SME Loan: Considering the volume. This type of advance depends mainly upon the trustworthy of the party. in the last two decades AB Bank has been patronizing this sector by extending credit facilities of different types and tenor. b) Cash Credit (Pledge): In this case.' Two types of cash credit are exercised in ABBL— a) Cash Credit (Hypothecation): Hypothecation is a charge on company for a debt. commerce and industries of the country against pledge of stock in trade under Bank's control. both ownership and possession remain under debtor. As of now 54% of the banks total loan portfolio is segmented to the SMEs which deserve all out attention in our plans.Cash Credit is a continuous type of short term advance.16) FOREIGN EXCHANGE 47 | P a g e . but neither ownership nor possession passes to the creditors. 4. It is allowed for promoting trade. called the cash credit limit. role and contribution of the SMEs. In hypothecation. 'Under this system. up to which the customer is permitted to borrow against the security of tangible assets or guarantees. the banker specifies a limit.

This may be the issuing bank.   48 | P a g e As soon as the seller receives the credit and is satisfied that he can meet its The seller then sends the documents evidencing the shipment to the bank terms and conditions. Summery of Foreign Exchange Procedure:    credit. Foreign trading is strictly controlled by the Bangladesh Bank. Foreign Trade is one of the most important segments of Bank Business. In addition to deposit mobilization and credit management. While performing those tasks bank should be very much cautious as lot of complexities are there. where the credit is available (the nominated bank). he is in a position to load the goods and dispatch them. commercial bank as well as AB Bank of Bangladesh Limited deals in foreign exchange.Commercial bank collects the ideal saving from the people and supplies them into productive channels. With the changes of time international trade is diversifying gradually. Dealing in foreign trading needs a lot of concentration. Foreign exchange dealing is one of the main functions of the bank and it generates a significant portions a bank’s income. Modern banks (like ABBL) are playing significant role in foreign trade. or The advising or confirming bank informs the seller that the credit has been The buyer and the seller conclude a sales contract providing for payment The buyer instructs his bank-the issuing bank to issue a credit in favor of The issuing bank asks another bank of the seller. A lot of work relating to export and import are done by banks. Foreign trade Comprises of Import & Export business. The success of a commercial bank depends on how successfully it can be mobilizing saving and advance short and long term credit to business community. which includes remittance of currency and financing. to advise or confirm the by documentary credit. Personnel should posses the above qualities to work in this arena. Therefore a deviation or mistake will cost bank a more. . the seller (beneficiary). accuracy and technical know how as any mistake or malpractice may lead to disaster for a Bank’s Business.  issued. exports and imports.

either • Effects payment in accordance with the terms of the credit. If the credit allows for negotiation by any bank there will not be negotiates bank and documents be sent to any bank willing to negotiate. 49 | P a g e .the confirming bank or a bank named in the credit as the paying. Any other bank including the advising bank if it has not confirmed the credit. In the case of a credit available by negotiation. the bank will pay. if other than the issuing bank. accept or negotiate according to the terms of the credit. the issuing bank or the confirming bank will negotiate without recourse.  The bank checks the documents against the credit. sends the documents to the The issuing banks checks the documents & if they meet the credit issuing bank.  The buyer sends the transport document to the carrier who will then proceed to deliver the goods. they are released to the buyer upon payment of the amount due or upon other terms agreed between him and the issuing bank.  When the documents have been checked by the issuing bank and found to meet the credit requirements. will do so with recourse. either to the seller if he sends the documents directly to the issuing bank or to the bank that has made funds available to him in anticipation.   The bank. If the documents meet the requirements of the credit. requirements. or • Reimburses in the pre-agreed manner the confirming bank or any bank that has paid accepted or negotiated under the credit. which negotiates. accepting or the negotiating bank.

17)Foreign Exchange Mechanism BUYER/ IMPORTER INDENTOR Sales/ purchase Contract SELLER/ EXPORTER/ BENEFICIARY Application for opening L/C Advises or confirms L/C 50 | P a g e PAYING / REIMBURSING BANK Pay or Reimburses Makes Payment against documents Present documents Submits documents Issuing L/C ISSUING BANK L/C OPENNING BANK Forwards Documents Makes payment ADVISING BANK CONFIRMING BANK NEGOTIATING BANK Makes Payment Instructs to pay or reimburse .s4.

Sources: International Tarde Finance . & Corpns. (Page . import of merchandise essentially involves two things: bringing of goods physically into the country and remittance of foreign exchange towards the cost of the merchandise and services connected with its dispatch to the importer.) Actual Users . Organs. machineries etc.) Private Sector Commercial (finished products) 51 | P a g e Industrial (raw materials.Journal. Importer Public Sector (Govt. the importers are asked by their exporters to open letters of credit so that their payment against goods is ensured.30) Bangladesh Institute of Bank Manage Management 4.18 IMPORT SECTION AND IMPORT FINANCING Import is the flow of goods and services purchased by economic agents located in one country from economic agents located in another. In case of import. Hence.

52 | P a g e . To import. purpose. Administrative Ministry or Division specifying the source. After obtaining the IRC.18. attested photocopy of allocation letter issued by the allocation authority. 1950”. the person has to secure a “Letter of Credit Authorization” (LCA) registration from the Registration Unit of Bangladesh Bank. amount. After getting the LCA registration. – ⇒ A bank account with the branch ⇒ Import Registration Certificate (IRC) ⇒ Tax Payer’s Identification Number (TIN) ⇒ Pro-forma Invoice Indent ⇒ Membership Certificate from a recognized Chamber of Commerce & Industry or Town Association or registered Trade Association ⇒ Letter of Credit Authorization (LCA) Form properly filled in quintuplicate signed by the importer ⇒ L/C Application duly signed by the importer ⇒ One set of IMP Form ⇒ Insurance Cover Note with money receipt ⇒ VAT Registration Certificate (for Commercial Importers) ⇒ In case of Public Sector. the office of the Chief Controller of Imports & Exports (CCI&E) provides the registration (IRC) to the importer. the branch officials carefully scrutinize the documents and lodge the same in their respective registration books and duly verify the signature of the importer put on the LCA Form. a person becomes a qualified importer. a person should be competent to be an “Importer”. He is the person who requests or instructs the opening bank to open an L/C. On receipt of the LCA Form and the other documents.1 IMPORT PROCEDURE An importer is required to submit the following documents in order to get a license to import through Rampura Branch of Dutch-Bangla Bank Ltd. he is also called the “Opener” or “Applicant” of the credit. According to the “Import & Export Control Act. validity and other terms and conditions against the imports ⇒ Any such documents as may be required as per instructions issued/to be issued by the Chief Controller of Imports & Exports (CCI&E) from time to time.Figure: Types of Importers 4.

In case of pre-shipment financing. two (02) types of L/Cs are handled – 1) Back-to-Back L/C 2) Export L/C Export financing can be done in two ways. the seller as the beneficiary of the first L/C offers it as a ‘security’ to the Advising Bank for the issuance of the second L/C. In Rampura Branch. Example of post-shipment financing by bank is FBPN (Foreign Bill Purchase & Negotiation). papers/documents required for opening of back-to-back L/C are as follows – ⇒ Master L/C ⇒ Valid Import Registration Certificate (IRC) and Export Registration Certificate (ERC) ⇒ L/C Application and LCAF duly filled in and signed ⇒ Pro-forma Invoice or Indent ⇒ Insurance Cover Note with money receipt ⇒ IMP Form duly signed ⇒ In addition to the above documents.19 EXPORT SECTION & EXPORT FINANCING In the Export Section. a new L/C (an import L/C) is opened on the basis of an original L/C (an export L/C).19. Of the portion. no cash security (no margin) is taken by the bank.4. Under the “Back-to-Back” concept.1 BACK-TO-BACK L/C: In case of a “Back-to-Back” letter of credit. the drawn bill is usage/time bill. In case of a backto-back L/C. In case of a back-to-back L/C. The beneficiary of the back-to-back L/C may be located inside or outside the original beneficiary’s country. 90% is financed by the bank. 4. 75% is for back-to-back L/C and 15% is for pre-shipment cash credit. These are – 1) Pre-shipment Financing 2) Post-shipment Financing Pre-shipment financing can be done by opening of back-to-back L/C and pre-shipment cash credit. the following papers/documents are also required to export oriented garment industries while requesting for opening of back-to-back letter of credit – ⇒ Textile Permission ⇒ Valid Bonded Warehouse License 53 | P a g e . bank liens the first L/C.

In Karwan Bazar Branch. For importing machinery. Alternatively he can discount it in order to obtain immediate payment. the exporter has to present a bill of exchange payable to him in addition to other documents that the bank negotiates.2 PAYMENT FOR BACK-TO-BACK L/C: In case of back-to-back L/C for 30-60-90-120-180-360 days of maturity period. But the Head Office is paid under T. after presentation of the export documents.T. ♦ Negotiation Credit: In Negotiation Credit. Kawran Bazar Branch can authorize for 360 days.19. Clean Rate. Payment is given after realizing export proceeds from the L/C Issuing Bank. on a specified future date or event) on the bank that is to accept it. 30-60-90-180-360 as the case may be. 4. For Garments Sector. 54 | P a g e . The difference between the two rates is the exchange trading for the branch.19. without permission from Bangladesh Bank.3 MODES OF PAYMENT FOR EXPORT BILLS UNDER L/C The most common methods of payment under a L/C are as follows – ♦ At Sight Payment Credit: In At Sight Payment Credit. ♦ Deferred Payment Credit: In deferred payment credit. A checklist to open back-to-back L/C is as follows – ⇒ Applicant is registered with CCI&E and has bonded warehouse license ⇒ The master L/C has adequate validity period and has no defective clause ⇒ L/C value shall not exceed the admissible percentage of net FOB value of relative Master L/C ⇒ Usage Period will be up to 180 days. In such cases. the duration can be maximum 180 days. 4. the exporter presents a bill of exchange payable to him and drawn at the agreed tenor (that is. the payment is given to the party at the rate of D. The bank signs its acceptance on the bill and returns it to the exporter. deferred payment is made.⇒ Quota Allocation Letter issued by the Export Promotion Bureau (EPB) in favor of the applicant for quota items In case the factory premises is a rented one. The exporter can then represent it for payment on maturity. Letter of Disclaimer duly executed by the owner of the house/premises to be submitted. the Manager of the branch used to exercise his discretionary power. No bill of exchange is involved.A. the bank agrees to pay on a specified future date or event. the bank pays the stipulated sum immediately against the exporter’s presentation of the documents. ♦ Acceptance Credit: In Acceptance Credit.

which is the only vocational institute under the Board of Vocational Education in Bhairob Upozilla. Additional Managing Director of the Bank. including scale models. Vice President and Head of Corporate Affairs. AB Bank Limited were present in the press conference. Deputy Managing Director AB Bank Limited. the college administration would be benefited by the computers given by ABBF to cope with increasing demand of computers for its students. Mr. As Computer learning has become compulsory for class XI & XII under the present academic curriculum. 2010. Manager Taratari Shipyard and Mr. Executive Director Friendship. Among others Mr. Chaudhury. the building of the boats and the livelihood associated with boat-building. AB Bank is the main sponsor of the exhibition. Fazlur Rahman handed over the computers & accessories to the college authority at a simple ceremony at the Rajnagar Karigori & Banijjo College premises. Printers and Computer Tables to Rajnagor Karigori & Banijjo College. The exhibition has been organized to allow people to not only admire the beauty and craftsmanship of these collectable items but also to raise awareness of a heritage on its way to being lost. The exhibition will be displaying different aspects of traditional boats. Mrs. 2010. Javed Tariq. AB bank training for women entrepreneur 55 | P a g e .Traditional Boats of Bangladesh The non-government organization Friendship in association with AB Bank organizing a boat exhibition tilted “Traditional Boats of Bangladesh” at the Bangladesh National Museum’s Nalinikanta Bhattashali Gallary from 23 March to 19 April.Social corporate responsibility ABBF Donates Computers to Vocational Institute in Bhairob Under the Bank’s CSR initiatives. Kishoregonj. Mr. Shamim A. Arab Bangladesh Bank Foundation (ABBF) donated four computers along with UPS. AB Bank sponsoring the exhibition. Bhairob. To announce this exhibition. Friendship organized a press conference in the National Press Club on March 19. Tajul Majumder. Runa Khan.

Mr. President & Managing Director of AB Bank Ltd and Mr. Thirty five women entrepreneurs participated in the programme. Management Ability (M) iv. So no shortcomings of the bank are unknown to the BB. Kaiser A. Here I based on the data of Balance Sheet & published data. Chowdhury. AB Bank Ltd were also present. Asset Quality (A) iii. So. Earnings (E) v. Sukamal Sinha Choudhury highly appreciated the initiatives that banks are coming up with the respond from Bangladesh Bank. Participants were awarded with certificates at the end of the training session. GM of SME & Special Programmes Department. Mr. The following factors are considered herei. Liquidity (L)  Capital Adequacy 56 | P a g e . The training programme was arranged for SME customers with a focus to increase awareness regarding proper banking activities while applying for SME loans. my rating may differ from the BB or any other rating. Sukamal Sinha Choudhury. But it is not published.AB Bank Limited organized a day-long training programme on Entrepreneurship Development for Women Entrepreneurs Wednesday at ABBL Training Academy in the city.it is a step forwards involving the vast number of women population in the economic activities of the country. He believes that these activities would help promoting women entrepreneurs business competence therefore contributing towards the economic development of the country. Head of SME Banking Division. CAMEL RATING Bangladesh bank (BB) does the CAMEL rating every year. Mr. Moshiur Rahman Chowdhury. In his inaugural speech. Capital Adequacy (C) ii. Bangladesh Bank inaugurated the programme. It can collect information from any part of the bank as it has the authority. When BB does the CAMEL rating it takes information both from the balance sheet and from inside the bank.

When a loan becomes classified. Accounting system. 57 | P a g e . The present standard ratio is 10%. Per Capita Profit  Earnings It is calculated and dependent on the followings⇒ Return on Assets: It is the ratio of net profit & average assets. When the classified loan is within the amount of shareholders equity and reserve then bank possible loss is within the limit of bank. This ratio is helpful to find out the amount of capital of a bank and it's proper utilization. Besides these. It will not affect the depositors. the followings also taken into consideration: i. reserve and deposit. It can't be assessed by quantity. The classified loan affects the asset quality of a bank. The ratio of average earning assets and profit from investment is the net investment margin.  Management Quality Management quality is totally a qualitative factor. It is sometimes dependent on the Bank's organizing structure. Bank gives his loan from the shareholders equity. more the net income interns of assets. MIS. And this is the reason for which net worth protection is an important calculation. work process flow. The standard ratio is 30%. etc. The standard ratio is 6%. So. ⇒ Leverage Ratio: It is the ratio of average assets and the shareholders equity.  Asset Quality Loan and advance is the main source of income to the bank. By this ratio bank can assess the amount of assets by giving loan to increase his income. ⇒ Return on Equity: It is the ratio between the shareholders equity and profit. For this reason shareholder equity and reserve must cover the classified loan for the safety of the depositors.The related factors to capital adequacy are: ⇒ Capital adequacy: It is the ratio between the risk-weighted assets and the shareholders equity. Per Capita Expense ii. The more the classified loan the more the asset quality goes down. the more the ability of the assets to earn. ⇒ Net worth protection: Classified loan is one of the main reasons for the bank's loss. no income is there from that loan and there is a possible chance to incur loss from it. ⇒ Net Investment Margin: The profit from investment is the difference between the income and expense of investment. The standard ratio is 8%. Now the minimum percentage is 8%. The present standard ratio is 4%. Asset is collected and utilized to increase the income.

⇒ Diversification Ratio: Interest from loan and advances is not the only source of income now a day. liquidity problem may arise. Again if over investment is there. to meet up the demand of depositor and to earn the maximum profit. Almost 50% collected from these sources.0 Rating Strong Satisfactory Exact Marginal Unsatisfactory . Various types of fees and commission are also there.0-1. The more the ratio.55% 8% 10% 7% 6% 5% 15% 20% 21% Earnings Quality Liquidity & Quantity Depos Return it/ on Liqui Assets d Asset 85% 30% 65% 20% 45% 35% Net Loss 19% 15% 10% Depos it/ Loan 60% 80% 85% 90% 91% Strong Satisfactory Exact Marginal Unsatisfactory 1 2 3 4 5 Average Value 1.5-3. profit will be less because investment will be less. the more the bank has the ability to meet up the current liability.5-4.4 2. Liquidity  The following assesses the standard of liquidity: ⇒ Investment-deposit Ratio: Liquidity and profit affect one another.5-5. So what will the amount to invest and what will be the liquidity must be determined on the basis of experience. ⇒ Ability to meet up the current Liability: It is the ratio of deposit and liquid assets. If liquidity is more.4 58 | P a g e 1.5-2.4 4. Camel Rating Tables Capital Asset Adequacy Quality Rating Quantitative Value Classifi Capital ed Adequacy Loan/ Ratio Total Loan 9% 5.4 3.

59 | P a g e .

Findings of the report 60 | P a g e .

ABBL mainly performs financial activities to its client but they take special consideration over export finance as well as foreign remittance service. weakness. cohesion and avoiding bureaucracy help the bank in creating valuable services to their customers.1. for this ABBL and its client feel more secured. This facilitates the organization to make their existing line of performance and also foresee the future to improve their performance in comparison to their competitors.  Compare to other competitor banks and financial organization it enjoys strong position in operation & financial performance.  The bank has a wide image in the banking industry.  As our economy largely depends on import. 61 | P a g e . 4. And these activates play an effective role to well socio-economic turnover of our country.SWOT Analysis SWOT Analysis is the detailed study of an organization’s exposure and potential in perspective of its strength. opportunity and threat.  Monitoring and supervision activities in case of Financial Performance operation are stunning and matured.1 Strengths AB Bank Limited has already established a favorable reputation in the banking industry of the country.  “Clients are the partners” the bank believes that.  Keep strong documentation in operation & financial performance. an organization can also study its current position. Any suggestions from clients are heartily acceptable. it can also be considered as an important tool for making changes in the strategic management of the Operation & Financial Performance activities. As though this tool. It is one of the leading private sector commercial banks in Bangladesh. Strengths in managerial skills.  Sophisticated automated system has been introduced. This bank has already displayed its strengths in operation & financial performance.

Standard Chartered & HSBC has extensive network worldwide which is an integral part in foreign trade.2 Weaknesses • • Heavily depends on Head Office for decision making.  For getting higher market share performing their financial activities. 4.4.  Introduction of Online Banking throughout all branches within Bangladesh. After 1/11.1.3 Opportunities  In order to achieve higher growth. ABBL has to be more efficient and swift in service. If that happens the intensity of competition will rise further and bank has to develop strategies to compete against foreign banks competition. import & remittance) has bright future in our country. All branches are not equally not well decorative 4. Both banks enjoy this competitive advantage.1.  Foreign Bank like. AB Bank Limited has to concentrate not only one section of foreign trade business but also give simultaneous concentration over all the sections.  Operation & Financial performance hugely depends on political stability of a country. 62 | P a g e . in Bangladesh there is a good situation exist for foreign trade and as banks are important player in foreign trade. it has good opportunity to increase their financial performance activities. Export.  Foreign Exchange business (export.4 Threats  All sustain multinational and private commercial banks force enormous threats to AB Bank Limited.1. ABBL has to take that chance by preparing up to date strategic plan. Import & Remittance flow of Bangladesh growth is increasing which suggests that there is an opportunity to flourish the operation & financial performance in near future.

Through their well-built network they have been able to grab a significant share of the market. Activity ratio: Such as fixed turnover. No single ratio could begin to meet the burden imposed be different needs. ABBL is in the cash cow quadrant in the Boston Box. But recently due to some government regulation and intense competition from some new players in the market AB Bank Ltd. 1. each designed to address important aspect of the firm’s financial condition.3 Financial Ratio Analysis Ratio analysis is a relatively simple yet powerful tool in diagnosing the financial condition of an organization. So. 2. as a whole. High High Market Growth Low High Market Share Low Star (*) Cash Cow ($) Dutch Bangla Bank Ltd. 4. Certain Bangladesh Bank rules and regulation. 63 | P a g e . Thus five major categories of financial ratios have been developed. total assets turnover measure the efficiency with which the firm is using its resources. could not maintain the same growth as usual. BCG growth matrix AB Bank Limited introduced many new services. Problem Child (?) Pet (x) Figure: BCG growth-share matrix. Liquidity ratio: Such as current ratio measure the quality and adequacy of current assets to meet current liabilities as they come due.

4 0.32 64 | P a g e .2 0 2005 2006 2007 R eturnon As et s 2008 0.07 0. Profitability Ratio: Such as gross profit Margin.4 1.5 0.2 1 0. etc. Debt-equity ratio measure a firm’s ability to service its debt. Return on Asset: Return on Asset=Earnings after tax/Total Assets Table 09: Return on Assets (ROA) (%) Year 2009 2008 2007 2006 2005 ROA 1.39 0.76 1. assets and owner’s equity.2 a t c P n e r u g i F 2009 Return on Equity: Return on Equity=Earnings after Tax/Total equity Table 10: Return on Equity (ROE) (%) Year 2009 ROE 18.39 0.76 0.07 1. 4.8 0.6 0. Operating profit margin.50 0.3. measure management effectiveness as indicated by the return on sales. return on total asset.20 0. Financial leverage Ratio: SUCH AS Debt-ratio.

64 7.4 0.5 0.53 1.2008 2007 2006 2005 15.13 11.2 0 2005 2006 2007 R eturnon As et s 2008 0.76 1.95 53.23 10.2 a t c P n e r u g i F 2009 Price Earnings Ratio: Price Earnings Ratio = Current market share/price Earnings per share Table 11: Price Earnings Ratio Year 2009 2008 2007 2006 2005 Price Earnings Ratio 17.24 1.2 1 0.68 20.4 1.89 65 | P a g e .6 0.39 0.8 0.21 15.07 0.

60 50 40 30 20 10 0 55.5 10 9.59 10.13 2005 2006 2007 2008 2009 Pric E rning R tio e a s a Capital Adequacy Ratio: Capital Adequacy Ratio (CAR) = (Tier One Capital + Tier Two Capital)/Risk Weighted Capital Table 12: Capital Adequacy Ratio Year Capital Adequacy Ratio(% ) 10.5 2005 2006 2007 CAR 2008 2009 EPS (Earning per Share): Earnings per Share=Net profit for Shareholders/No.09 9.59 9. of Shares 66 | P a g e .95 o l m n e r u g i F 17.17 9.17 2009 2008 2007 2006 2005 10.17 9.5 9 9.09 9.89 20.68 15.21 11.16 9.17 9.16 s a t c P n e r u g i F 8.

26 60 50 40 30 48.10 93.76 40.72 256.61 50.48 34.Table 13: Earnings per Share Year 2009 2008 2007 2006 2005 EPS 131.08 31.95 o l m n e r u g i F 20 10 0 2005 2006 2007 E PS 2008 2009 67 | P a g e .13 89.21 43.

Recommendatio n 5. Recommendation 68 | P a g e .

E. 69 | P a g e . From my personal view point I have some recommendation for ABBL which will hopefully help to better maintain the achieved position. may be that can solve the accommodation problem to some extent. I am mentioning some points according to me  AB Bank Ltd. is a well known and reputed organization in the banking sector.g. working environment and to keep pace with the work load.  Working environment of some old and busy branch is not up to satisfactory level. printer.  AB Bank Ltd should open some new branch in some sweat commercial area.AB Bank Ltd. Maintenance of these ATM Booths should be in a proper way.  Some Branch needs some more office equipment to maintain files. etc. file shelf.  ATM Booth of ABBL is not widely spread in Dhaka and all over in Bangladesh. Some Branches can not accommodate all clients at a time. authority should keep that in consideration. The Bank has achieved the particular place among the country people of Bangladesh because of their well maintained standard. management should keep these in consideration. should increase some man power in some brunches so that officers can give more time to the client and work effectively. But maintaining a position is as tough as gaining the position. During my three month internship I have noticed positive attitude about ABBL among their clients.  Some branch have accommodation problem for the clients. computer.

Conclusion 6. Conclusion 70 | P a g e .

The networking system obviously charges a high installation cost. ABBL continues to play its’ leading role in socio-economic development of the country as a companion of Independent Bangladesh. Besides its’ traditional function such as deposit mobilization. BIBLIOGRAPHY 71 | P a g e . Bank always contributes towards the economic development of a country. deployment of fund in trade. ABBL has emerged as the pioneer of playing key role in the country. commerce. outward and inward remittance. The ABBL is one of them. On the other hand cash are properly used at that time this bank reached in the top-level private bank in our country. There are computers almost in every branch in the AB Bank Limited. Moreover by adopting this system the bank join the modern banking along with e-commerce concept. industry. ABBL. The main problem is that the foreign banks and other private commercial banks have started providing these facilities. It is obvious that right thinking of this bank including establishing a successful network over the country and increasing Resources will be able to play a considerable role in the portfolio of development financing in the developing country like ours. So introduction of these facilities are very necessary for surviving and thriving in the modern competitive banking. it is maintaining a network among them.There are a number of nationalized and foreign banks operating their activities in Bangladesh. For the future planning and the successful operation in achieving in its’ ABBL goal in this current competitive environment this report can be a guideline. agriculture. but it will definitely reduce the overhead cost and an error free banking may be in progress. compared with other banks are contributing more by investing most of their funds in fruitful projects leading to increase in production. import & export business.

org 72 | P a g e .Reference Books: 1. CPD  Import Policy Order 2004-2008.com  www. Foreign Exchange and Financing of Foreign Trade .Syed Ashraf Ali 3. Ministry of Commerce. Government of the people’s republic of Bangladesh  Newsletters. Government of the people’s republic of Bangladesh.bangladesh-bank. Bangladesh Bank  State of Bangladesh Economy – Early Signals of FY 2008.2008-2009  Bangladesh Economic Review 2008.Edward N. Prospectus of AB Bank Websites:  www.mincom. Dubois Annual Reports. Ahsan Habib & Md.siblbd.S.  Export Policy 2004-2008.epb. Economic Advisor’s wing. Essential Statistical Methods for Business .org  www.com  www.abbankbd.cpd-bangladesh. International Trade and Foreign Exchange [Published by BIBM] . Ministry of Commerce.  Quarterly Economic Update Bangladesh by Asian Development Bank  Economic Trends.bd  www. Journal.gov. Manuals & others:  Annual Reports of AB Bank Limited .bd  www.M.gov. Finance Division Ministry of Finance. Sajjdur Rahman 2.

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