AREA APPROACH/CLUSTER BASED SME FINANCING

For rapid growth, lower risk and intensive monitoring facilities, Agrani Bank Limited has taken into consideration to ensure the area
approach and cluster based SME financing. With a view to do so, the bank has instructed its 35 potential branches to disburse cluster
based SME loan after cluster identification. The handicrafts, light engineering, fishery, grocery, printing, small power plant, hardware,
Biogas Plant, Fish feed, husking mills, chatal, flower cultivation etc. are the main clusters identified by the bank. For these clusters
development, the bank has disbursement target of Tk.2250 million is fixed for the year 2019.

Definition of Cottage,

Micro, Small & Medium Enterprise: Manufacturing/Service/Trading or Business Sectors: Industry /Enterprise Sectors Replacement cost of fixed
asset excluding land & building Employed Manpower Yearly Turn over Highest Loan Limit(TK.) Cottage Manufacturing Less than TK 10.00 lac
Highest 15 - 10.00 lac Service Less than TK 10.00 lac Highest 15 - 10.00 lac Micro Manufacturing TK 10.00 lac to 75.00 lac 16-30 or less - 1.00
crore Service Less than TK 10.00 lac Highest 15 - 25.00 lac Trading/Business Less than TK 10.00 lac Highest 15 Above 1.00 crore 25.00 lac Small
Manufacturing TK 75.00 lac to 15.00 crore 31-120 - 20.00crore Service TK 10.00 lac to 2.00 crore 16-50 - 5.00 crore Trading/Business TK 10.00 lac
to 2.00 crore 16-50 1.00-12.00 crore 5.00crore Medium Manufacturing More than TK 15.00 crore to 50.00 crore 121-300, but garments or labour
intensive industry highest 1000 75.00 crore Service TK 2.00 crore to 30.00 crore 51-120 - 50.00 cror

SECTORS OF SME FINANCING

Manufacturing sectors: Textile industry, Jute industry, Garments, Rice mill, plastic industry, Saw mill, light engineering, Agro processing,
Feed mill, furniture industry and other socially acceptable and eco-friendly business.
Service sectors: Hotel, Restaurant, Tailoring, Laundry, Hospital, Clinic, Kindergarten, Block and Printing, Tractor, Power tiller, Irrigation
equipment etc.
Trading/Business sectors: Grocery shop, cloth shop, Medicine shop, Plastic and synthetic shop, shop of spare parts, Rods and cement,
Furniture, Agro-business and other income generating and socially acceptable business.

LINKAGE OF SME FINANCING

NGO Linkage program: Agrani Bank Limited is a pioneer bank in expanding credit activities through the capable NGOs. The bank has
engaged different NGOs for expanding the SME credit services. Any potential NGO can avail the credit facilities from this bank complying
existing rules and regulations. The bank has already disbursed a total loan of Tk 312.00 crore to the BRAC in 2015 and 300.00 crore to the
TMSS in 2017. As a retailer, the NGOs have re-lent the same to the targeted SME people.

Foreign Aided Credit Programs:The Agrani Bank Limited has been utilizing its own fund and the foreign fund for credit operation. The
credit programs namely EGPRP and MSFSCIP (Kurigram) are being successfully operated by the bank under the financial assistance of
IFAD. Under the program EGPRP, the bank extending credits to the people through its 191 branches. Agrani Bank Limited has disbursed
TK 18.25 crore under EGPRP program & TK 0.34 crore under MSFSCIP program in 2018.

CONTRIBUTION OF ABL FOR DEVELOPING SME

 
After starting SME financing, Agrani Bank Limited has been taking various steps such as establishment of separate SME Credit Division,
adopting SME financing activities according to Bangladesh Bank’s guide line, operating SME financing activities through all branches,
allocating sufficient budget for SME loan disbursement, zone & cluster wise SME loan disbursement, establishing SME Help Desk &
Women Entrepreneur Dedicated Desk in all branches, establishing SME Monitoring Cell & Women Entrepreneur Development Unit in All
zonal offices & corporate branches, SME Monitoring Committee established by the chief of committee(DMD) And   SME Monitoring Cell
established by the chief of committee  GM(CPCRMD), introducing separate loan activities for women entrepreneurs, vivid participation in
different SME fairs & other promotional efforts etc. As a result of taking these activities in the meantime the bank has achieved a superior
position. The financial position of SME loan activities as on December, 2018 is given below:

A. Financial position of SME Loan as on 2018:

Nature of loan Disbursement Disbursement as on % of Classified Outstanding amount as on

Target'2018 Dec’2018 Disbursement Loans Dec’2018
 
 
Number Amount Number Amount

Cottage 12.00 crore 23 0.18 crore 1.5% 0.00 crore 571 0.21 crore
Industry

Micro 112.80 crore 17702 228.82 203% 27.92 crore 43186 1017.30 crore
Enterprise crore

Small 2814.90 crore 21740 3170.42 113% 639.43 crore 54974 4255.59 crore
Enterprise crore
 Medium 939.66 crore 150 903.32 96% 552.06 crore 683 2032.57 crore
Enterprise crore

Total 3879.36 crore 39615 4302.74 111% 1219.41 99414 7305.67 crore
crore crore

GROWTH OF SME IN AGRANI BANK LIMITED

As a state owned commercial bank, the Agrani Bank Limited has given more emphasis to the SME financing which resulted in remarkable
growth of SMEs. The previous five years growth of SMEs is shown below:

Year Loan Disbursed Amount (BDT in Loan Outstanding Amount (BDT in

crore) crore)

Number Amount Number Amount

2014 19539 1956.60 80302 5429.60

2015 19950 2191.00 86192 4650.00

 2016 22522 2620.49 88857 4418.51

2017 34315 3298.19 93617 5656.16

2018 39615 4302.74 99414 7305.67

PRIORITY TO THE SMALL ENTERPRISE

Among the SMEs, the small enterprises have more prospects for generating income, reducing unemployment and achieving economic
growth. Keeping this in view, the bank has given priority to deliver credits to the small entrepreneurs. As a result, the bank is availed to
deliver almost 58% of total SME credit portfolio to the small entrepreneurs.

SPECIAL ATTENTION TO THE WOMEN ENTREPRENEURS

1. Home

The women are the most disadvantaged group in access to finance. But they are capable enough to operate any financial activities.
Keeping this in mind, Agrani Bank Limited has introduced a special women credit program under the caption  Nari Agrani. Through Nari
Agrani, the bank has ensured credits to the eligible and interested women. Under the program, the women can avail credit with only 9%
interest per annum. Giving importance to the women, the bank has established Women Entrepreneurs Dedicated Desk in all potential
branches. Moreover, the bank has allocated sufficient credit disbursement budget for the women entrepreneurs (13% of the total budget).
Thus the bank is bringing the women into the development activities of the country. Recently A Memorandum of Understanding has already
been signed with the BWCCI to increase the flow of credit between women entrepreneurs.