Internship Report

on
“Analysis on Retail Banking of Agrani Bank
Limited”

Prepared For
Sumi Azad
Assistant Professor
Department of Business Administration
Stamford University Bangladesh

Prepared By
Jinnat Jahan
ID No: BBA 059 18069
Batch: 059 (D)
BBA Program
Major: Finance
Department of Business Administration
Stamford University Bangladesh
Date of Submission:

Stamford University Bangladesh.

 Letter of Transmittal
Date:

Sumi Azad
Assistant Professor
Dept. of Business Administration
Stamford University Bangladesh.

Subject: Submission of internship report on “Analysis on Retail Banking of Agrani

Bank Limited”

Dear Madam,
I am proud to be a student of BBA of Stamford University Bangladesh. I have completed
the internship report on “Analysis on Retail Banking of Agrani Bank Limited” that
has been prepared as an integral part of my degree requirement. I have tried my best to
follow the instructions in preparing this report and submitted it to you for further action.

I hope you would find this report up to your expectation. I would be grateful to receive
your suggestions and comments regarding this.

It will be my pleasure to clarify any matter regarding this report. I thank to you for
allowing me the opportunity to undertake the task and for your sincere guidance and
cooperation.

Sincerely Yours,

--------------------------------------
Jinnat Jahan
ID No: BBA 059 18069
Batch: 059 (D)
BBA Program
Major: Finance
Department of Business Administration

ii
 Student’s Declaration

Internship Report

I here announce that the extensive study entitled

“Analysis on Retail Banking of Agrani Bank Limited”
Prepared in partial accomplishment of the Requirement for the award of the
degree

Bachelor of Business Administration

From
STAMFORD UNIVERSITY BANGLADESH

Is my original work and not put forward for

The award of any other degree / diploma / fellowship
Or other similar term or honor

Jinnat Jahan
ID No: BBA 059 18069
Batch: 059 (D)
BBA Program
Major: Finance
Department of Business Administration

iii
 STAMFORD UNIVERSITY BANGLADESH

To Whom It May Concern

This is to certify that the Internship report on “Analysis on Retail Banking of Agrani
Bank Limited” for the degree of Bachelor of Business Administration (BBA) major in
Finance from Stamford University Bangladesh carried out by Jinnat Jahan, ID No:
BBA 059 18069 5under my supervision. As far as I am concern, no part of the thesis
report has been submitted for any degree diploma, title, or recognition before.

--------------------------------------------------------------------------------------

Sumi Azad
Assistant Professor
Dept. of Business Administration
Stamford University Bangladesh.

iv
 Acknowledgement

First of all I express my gratitude and praiseworthy to all mighty Allah for giving me
every assistance in the way of my life. It is an honor for me to express my gratitude to the
Stamford University Bangladesh for providing me all the facilities in every possible way
to prepare this thesis paper. The successful completion of this thesis might never be
possible in time without the help of some persons whose inspiration and suggestion made
it happen.

At the very outset, I would like to take the opportunity to express my heartiest gratitude
to my supervisor Sumi Azad, Assistant Professor, Dept. of Business Administration,
Stamford University Bangladesh without her guidance and support it would be very
difficult for the successful completion of my report.

Finally, I would like to express my profound gratitude to my family members who have
given me the opportunity to accomplish the BBA program and making this report in turn.
However, the responsibility of errors and omissions in this report, if any, lies in my
account.

v
 Executive Summery

Agrani Bank Ltd. in its relentless effort has already earned its fame in the banking arena.
Amongst the vast banking service offerings in the market, the retail banking products of
Agrani Bank demand the credibility of the target market as most of the products
attributes are at par with its competitors. The array of the products range from all the
asset products to liability products with Credit card and ATM card, which make the
banking business of Agrani, is very attractive to the target market.

The report is focused on the “Retail Banking Activities” which initiated its retail business
in the year 2000 although the bank started its business in 1995. It is to be noted that the
Retail Banking is completely operational with the strong IT support. Moreover having
with efficient IT Division along with 45 branches, Agrani Bank are completely under the
online banking scope which is enabling the Agrani bank to cater to the target market
more efficiently through all the branches of the bank.

Basically, I have tried to make the report into three parts. This report contains an
overview of Agrani Bank in its first part. In the second part, I have illustrated the Retail
Banking Overall performance of Dhaka Bank, which is mainly analyzed. And third part
Financial Performance Analysis which is done by Annual report. Then I have described
what I did or learnt as an intern.

vi
 TABLE OF CONTENTS

SL. Chapters & Contents Page

No No
Cover Page
Inside top page
Letter of Transmittal ii
Student’s declaration iii
Supervisor’s certificate iv
Acknowledgment v
Executive Summery vi
Table of Contents vi-ix

Chapter:1 Introduction 01-05

1.1 Background of the Report

1.2 Rationale of the Report
1.3 Objectives of the Report
1.4 Scope of the Report
1.5 Methodology of the Report
1.6 Limitations of the Report

Chapter: 2 Industry Analysis 06-22

2.1 Definition of Bank
2.2 Origin of the Word “Bank”
2.3 Economic Functions of Bank
2.4 Working Process of Bank
2.5 Objectives of Banking Business
2.5.1 Objectives from the Owner’s Perspective
2.5.2 Objectives from the Government’s Perspective
2.5.3 Objectives from the Bank Client’s Perspective
2.6 Basic Functions of Bank

vii
2.7 Basic Principles of Banking Business
2.8 History of Banking Sector in World
2.9 History of Banking Sector in Bangladesh
2.10 Overview of Banking Environment in Bangladesh
2.11 Banks Operated in Bangladesh
2.11.1 Central Bank:
2.11.2 Objectives of Central Bank
2.11.3 Functions of Central Bank
2.11.4 Rules and Regulations Imposed by Bangladesh Bank:
2.12 Scheduled Banks:
2.12.1 State Owned Commercial Banks
2.12.2 Private commercial Banks
2.13 Specialized Banks
2.14 Non Scheduled Banks
2.15 Future Prospect of Banking Sector in Bangladesh

Chapter:3 Background of the Agrani Bank 23-37

Limited
3.1 An Overview of Agrani Bank Limited
3.2 Mission, Vision, Strategy Statement of Agrani Bank Limited
3.3 Ownership Structure of Agrani Bank Limited
3.4 Composition of the Board of Agrani Bank Limited
3.5 Capital and Reserves of Agrani Bank Limited
3.6 Milestones in the Development of Agrani Bank Limited
3.7 Management Structure of Agrani Bank Limited
3.8 Risk Management of Agrani Bank Limited
3.9 HRD of Agrani Bank Limited
3.10 Branches of Agrani Bank Limited

Chapter: 4 Retail Banking Activities of 38-59

Agarni Bank Limited

viii
4.1 Introduction
4.2 Definition of Retail Banking
4.3 Retail Banking OF Agrani Bank Limited
4.4 Marketing mix of retail Banking
4.5 Liability Products
4.5.1 Deposit:
4.5.1.1 CASA A/C
4.5.1.2 Fixed Deposit Receipts:
4.5.1.3 Deposit Pension Scheme:
4.5.1.4 Deposit Double
4.5.1.5 Special Deposit Scheme/Income Unlimited
4.5.1.6 Smart Plant
4.5.1.7 Savings Bundle Product
4.6 Asset Product
4.6.1 Personal Loan
4.6.2 Car loan
4.6.3 Home loan
4.6.4 Any Purpose Loan
4.6.5 Vacation Loan
4.7 Other Service of ABL
4.8 SME
4.9 Comparison of interest rate and processing fee with the competitors
of ABL in different Loan Purpose
Chapter:5 Analysis and Findings 60-73
5.1 Performance Analysis
5.1.1 SOURCE OF FUND
5.1.2 USED FUND
5.1.3 OPERATING & NET PROFIT
5.1.4 RATIO ANALYSIS OF AGRANI BANK LIMITED
5.1.5 DIFFERENT RATIOS OF AGRANI BANK LIMITED
5.1.6 OPERATING PERFORMANCE RATIO
5.1.7 FINANCIAL PERFORMANCE OF THE BANK
5.1.8 Assets
5.3 SWOT Analysis on Retail Banking Department of ABL
5.3.1 Strengths
ix
5.3.1 Weakness
5.3.1 Opportunities
5.3.1 Threats
5.4 Findings
Chapter: 6 Recommendations & Conclusion 74-77
6.1 Recommendations
6.2 Conclusion
Bibliography 78