Company Profile

An Overview of Agrani Bank Limited (ABL)

Agrani Bank Limited, a state owned leading commercial bank with 956 outlets strategically
located in almost all the commercial areas throughout Bangladesh, overseas Exchange Houses
and hundreds of overseas Correspondents, came into being as a Public Limited Company on
May 17, 2007 with a view to take over the business, assets, liabilities, rights and obligations of
the Agrani Bank which emerged as a nationalized commercial bank in 1972 immediately after
the emergence of Bangladesh as an independent state. Agrani Bank Limited started functioning
as a going concern basis through a Vendors Agreement signed between the ministry of finance,
Government of the People's Republic of Bangladesh on behalf of the former Agrani Bank and
the Board of Directors of Agrani Bank Limited on November 15, 2007 with retrospective effect
from 01 July, 2007.

Agrani Bank Limited is governed by a Board of Directors consisting of 10 members headed by a

Chairman. The Bank is headed by the Managing Director & Chief Executive Officer; Managing
Director is assisted by Deputy Managing Directors and General Managers. The bank has 11
Circle offices, 37 Divisions in head office, 53 zonal offices and 956 branches including 34
corporate , 42 AD (authorized dealer) branches and 5 subsidiary companies.

Agrani Bank Limited is the first Commercial Bank in Bangladesh to introduce Agent Banking.
Currently ABL has 200 agent booths who are operating Agent Banking activities around the
rural areas of Bangladesh. In Agrani Bank Limited, Islamic Banking system is operated under
'Islamic Banking Unit' since February 28, 2010 through 15 Islamic Banking Windows.

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Vision of Agrani Bank Limited (ABL)
To become a leading bank of Bangladesh operating at international levels of efficiency, quality
and customer service.

Mission of Agrani Bank Limited (ABL)

We will go operating ethically and fairly within the stringent framework set by our regulators.
We will go fusing ideas and lessons from best practice to explore newer ways to stay stronger
and more efficient, nimble, and adaptable, and competitive as will. We will keep abreast of the
advances of information and communication technology for the benefit of our customers and
employees. We will invest to strengthen the future of the bank.

Corporate Information

 Name of the Bank: Agrani Bank Limited

 Status: Public Limited Company
 Date of Incorporation: May17, 2007
 Registered Office: 9/D Dilkusha Commercial Area,
Dhaka - 1000, Bangladesh
 Telephone: +88(02)9566153-54
 Fex: (+8802) 956 2346, 956 3662
 E-mail: agrani@agranibank.org
 Web Page: www.agranibank.org/index.php/aboutus
 Chairman: Dr. Zaid Bakht
 Managing Director: Mr. Mohammad Shams-Ul Islam

Objectives of Agrani Bank Limited (ABL)

The objectives of Agrani bank Limited are specific and targeted to its vision and to position itself
in the mindset of the people as a bank with difference. The objectives of Agrani Bank Limited
are as follows:
 Be one of the best banks in Bangladesh.
 Achieve excellence in customer service next to none and superior to all competitors
 Cater to all differentiated segments of retails and wholesale customers.
 Be a high quality distributor of product and services.
 Use state-of the art technology in all spheres of banking.

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Theoretical Aspect

Balance Sheet

A balance sheet is a financial statement that summarizes a company's assets, liabilities and
shareholders' equity at a specific point in time. These three balance sheet segments give investors
an idea as to what the company owns and owes, as well as the amount invested by shareholders.

The balance sheet adheres to the following formula:

Assets = Liabilities + Shareholders' Equity

Income Statement

An income statement is a financial statement that reports a company's financial performance over
a specific accounting period. Financial performance is assessed by giving a summary of how the
business incurs its revenues and expenses through both operating and non-operating activities. It
also shows the net profit or loss incurred over a specific accounting period.

Cash flow Statement

A cash flow statement is a financial statement that provides aggregate data regarding all cash
inflows a company receives from its ongoing operations and external investment sources. It also
includes all cash outflows that pay for business activities and investments during a given period.

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Financial Analysis of Agrani Bank Limited

1. Net Operating Profit after Tax (NOPAT)

NOPAT = EBIT (1 – Tax rate)

NOPAT18 = 3,503,137,765(1 – 0.4)

= 2,101,882,659

NOPAT17 = 11,010,905,036(1 – 0.4)

= 6,606,543,018

NOPAT16 = -6,180,989,655(1 – 0.4)

= -3,708,593,793

NOPAT15 = 730,610,191(1 – 0.4)

= 438,366,114.6

NOPAT14 = 3,034,351,368(1 – 0.4)

= 1,820,610,821

8,000.00
6,606.54
6,000.00

4,000.00

2,000.00 1,820.60 2,101.88

0.00 438.37
2014 2015 2016 2017 2018
-2,000.00

-4,000.00 -3,708.59

-6,000.00

Figure 1: Net Operating Profit after Tax

Interpretation
The graph shows ABL NOPAT that was fall. It decreased in 2014 to 2016 then it was increase
in 2017 and again it decreased in 2018.

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2. Net Operating Working Capital (NOWC)
NOWC = Current Assets – Current Liabilities

NOWC18 = 774,369,693,306 – 747,567,158,581

= 26,802,534,725

NOWC17 = 658,361,382,393 – 633,187,538,735

= 25,173,843,658

NOWC16 = 670,788,128,490 – 586,990,624,647

= 20,797,503,843

NOWC15 = 549,401,979,336 – 520,675,602,007

= 28,726,377,329

NOWC14 = 479,428,568,144 – 455,304,216,680

= 24,124,351,464

35,000.00
30,000.00 28,726.38
26,802.53
25,000.00 24,124.35 25,173.84
20,000.00 20,797.50
15,000.00
10,000.00
5,000.00
0.00
2014 2015 2016 2017 2018

Figure 2: Net Operating Working Capital

Interpretation
The NOWC of this bank was fluctuating. From 2014 to 2015 it increased. Then it decreased in
2016 and the next year it started to increase in 2017 to 2018.

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3. Operating Capital
Operating Capital = NOWC+ Fixed Assets

Operating Capital18 = 26,802,534,725 + 14,783,579,480

= 12,018,955,245

Operating Capital17 = 25,173,843,658 + 15,560,736,445

= 9,613,107,213

Operating Capital16 = 20,797,503,843 + 15,779,340,372

= 5,018,163,471

Operating Capital15 = 28,726,377,329 + 15,949,477,952

= 12,812,899,377

Operating Capital14 = 24,124,351,464 + 15,447,261,727

= 8,677,089,737

14,000.00
12,812.90
12,000.00 12,018.96
10,000.00 9,613.11
8,677.09
8,000.00
6,000.00
5,018.16
4,000.00
2,000.00
0.00
2014 2015 2016 2017 2018

Figure 3: Operating Capital

Interpretation
The bank Operating Capital increased in 2014 to 2015. In 2016 the bank Operating Capital was
fall down. Then it again started to increase in 2017 to 2018.

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4. Net Cash Flow (NCF)
NCF = Net Income + Depreciation

NCF18 = 1,035,546,785 + 1,475,315,709

= 2,510,862,494

NCF17 = 6,759,290,210 +1,323,897,628

= 8,083,187,838

NCF16 = -6,970,106,854 + 919,679,290

= -6,050,427,564

NCF15 = 653,060,647 + 969,891,827

= 1,622,952,474

NCF14 = 1,986,144,764 + 715,621,085

= 2,710,765,849

10,000.00
8,000.00 8,083.19
6,000.00
4,000.00
2,000.00 2,710.77 2,510.86
1,622.95
0.00
-2,000.00 2014 2015 2016 2017 2018
-4,000.00
-6,000.00 -6,050.43
-8,000.00

Figure 4: Net Cash Flow

Interpretation
The bank NCF reduces in 2014 to 2016. In 2017 the bank NCF started to increase but in 2018 it
again decreased.

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5. Operating Cash Flow (OCF)
OCF = NOPAT + Depreciation

OCF18 = 2,101,882,659 + 1,475,315,709

= 3,577,198,368

OCF17 = 6,606,543,018 + 1,323,897,628

= 7,930,440,646

OCF16 = -3,708,593,793 + 919,679,290

= -2,788,914,503

OCF15 = 438,366,114.6 + 969,891,827

= 1,408,257,941.6

OCF14 = 1,820,610,821 + 715,621,085

= 2,536,231,906

10,000.00
8,000.00 7,930.44
6,000.00
4,000.00 3,577.20
2,000.00 2,536.23
1,408.26
0.00
2014 2015 2016 2017 2018
-2,000.00
-2,788.91
-4,000.00

Figure 5: Operating Cash Flow

Interpretation
The bank OCF reduces in 2014 to 2016. In 2017 the bank OCF was high. In 2018 the bank
OCF again started to fall.

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Findings
 NOPAT, NCF & OCF have been decreased compared to last year.
 Net Operating Working Capital & Operating Capital fluctuated from 2014 to 2017 then
it increased in 2018.

Recommendations
 The bank should increase its net profit so that NOPAT, NCF & OCF increase.
 ABL should focus on their NOWC & Operating Capital because in 2014 to 2016 it was
fluctuating then it again increased.

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Conclusion
There are a number of Private Commercial Banks, Nationalized Commercial Banks and foreign
Banks operating their activities in Bangladesh. The Agrani Bank ltd. is one of them.

Banks always contribute towards the economic development of a country. Compared with other
Banks Agrani Bank Ltd. is contributing more by investing most of its funds in fruitful projects
leading to increase in production of the country. Agrani Bank Ltd. is playing its leading role in
socio-economic development of the country has been rendering its Banking services with the
needs of the nation to cope with the demands of people in the country. By doing many other
works for state & society, Agrani Bank Ltd. has emerged as the pioneer of playing key role in the
country.

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Reference
 https://www.agranibank.org/
 https://www.agranibank.org/index.php/financial/annual
 https://www.agranibank.org/index.php/financial/balance_sheet
 https://www.agranibank.org/index.php/financial/cashflow
 https://www.agranibank.org/index.php/financial/profitloss

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