An Internship Report

On

Recruitment and Selection of AB Bank Limited

Submitted By:

Chayan Sarker

Registration No: 16102025

Program: BBA

Submission Date: 11 June 2021

 Approval

The internship report on Recruitment and Selection of AB Bank Limited has been

approved by the following:

Supervisor:

Mr. Sarwar Razzaq Chowdhury

Associate Professor

Department of Business Administration

Head of the Department:

Dr. Mahbubul Haque

Associate Professor and Head

Department of Business Administration

ii
 Declaration

I do hereby declare that this report is the result of my own findings, except where otherwise

stated. I also declare that this report has not been previously or concurrently submitted as a

whole for any others degree at University of Asia Pacific (UAP) and other institutions.

Chayan Sarker Date: 11 June 2021

iii
 Letter of Transmittal

11 June 2021

Mr. Sarwar Razzaq Chowdhury

Associate Professor

Department of Business Administration

University of Asia Pacific

Subject: Letter of transmittal

Sir,

I am submitting my internship report on Recruitment and Selection of AB Bank Limited.

This is one of the functions of HRM. I have collected as much as information from them and

their website and implement on this report. It is a great pleasure for me to submit this report.

I believe that this report will satisfy you and your requirements and enrich my knowledge.

Sincerely yours,

Chayan Sarker

Reg No: 16102025

Department of Business Administration

University of Asia Pacific

iv
 Acknowledgement

The internship opportunity I had with ABBL was a great opportunity to learn and develop

professional skills. Therefore I consider myself as a very lucky individuals as I was provided

with an opportunity to be a part of it. I also feel grateful for having a chance to meet with so

many wonderful people and professionals who helped me a lot.

I would like to thank Mr. Suruj Ali Bhutto VP & Relationship Manager of Uttara Branch,

ABBL for supervising me during this project. Also thanks to the members of ABBL.

It is always a pleasure to remind the good teachers from University of Asia Pacific for their

sincere guidance for different courses. Special thank goes to my supervisor Mr. Sarwar

Razzaq Chowdhury Associate Professor of University of Asia Pacific for supervising me to

complete my internship.

Then, thanks to my parents for giving encouragement, enthusiasm and invaluable assistance

to me. Without them, it might be hard to complete the report.

Finally, I apologize all other unnamed who helped me in various ways during my internship.

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 Executive Summary

This report highlights about Recruitment and Selection of ABBL. This process includes in

Human resource department. Information has been taken from their websites, annual reports,

conversation with officers and practical work. The main objective was to understand overall

HR works and banking system. To prepare this report I mainly use my practical work

experience and websites because information collected from officers was not adequate.

ABBL is a leading private sector bank in Bangladesh established on 31 December 1981 and

started its operation with effect from April 12, 1982. This was the first joint venture with

Dubai Bank Limited bank in Bangladesh. The ABBL Management Team is the combination

of a group of people and each of them comes with high working background. And it is

committed in leveraging their experience to take ABBL to greater heights by ensuring top

line revenues with dynamic capabilities.

HRM can be defined as recruiting candidates, selecting the best candidates, provide

orientation, and give training and development, appraising the performance of employees,

selecting compensation and give motivation. They mainly focus on services that served by

their experienced employees. While recruiting they give the best priority to candidate’s high

background, knowledge, experience and human psychology. As a result the bank is now one

of the leading bank in Bangladesh.

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 List of Figures

Figure 1: Porter’s Five Forces Model ………………………………………………………. 8

Figure 2: Management Hierarchy ………………………………………………………….. 10

Figure 3: Core HR Functions ………………………………………………………………. 16

Acronyms

Acronyms Full Name

ABBL AB Bank Limited

HRM Human Resource Management

vii
 Table of Contents

Contents Page NO.

Title Page ……………………………………………………………………………………. i

Approval …………………………………………………………………………………….. ii

Declaration ………………………………………………………………………………….. iii

Letter of Transmittal ………………………………………………………………………... iv

Acknowledgement …………………………………………………………………………... v

Executive Summary ………………………………………………………………………… vi

List of Figures …………………………………………………………………………….... vii

Acronyms …………………………………………………………………………………... vii

Chapter One: Introduction and Background ………………………………………... (1-2)

1.1 Introduction …………………………………………………………………….... 1

1.2 Origin of the Report…………………………………………………………….... 1

1.3 Background of the Study ………………………………………………………... 2

1.4 Objectives ……………………………………………………………………….. 2

1.5 Scope of the Report ……………………………………………………………... 3

1.6 Limitations of the Report ………………………………………………………... 3

Chapter Two: Industry Overview……………………………………………………. (4-13)

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 2.1 AB Bank Limited ………………………………………………………………. 4

2.2 Mission & Vision ………………………………………………………………. 4

2.3 Values of the Bank ……………………………………………………………... 5

2.4 Corporate Information ………………………………………………………….. 5

2.5 Objectives of ABBL………………………………………………...................... 6

2.6 Current Profile of ABBL …………………………………………...................... 7

2.7 Industry Analysis ………………………….…………………………………..... 7

2.8 Management hierarchy of ABBL ………………………………….................... 10

2.9 Departments and Divisions of ABBL …………………………………………. 11

2.10 Offerings of the Bank ………………………………………………………… 13

Chapter Three: Methodology, Findings and Discussion …………………….……. (14-19)

3.1 Methodology ………………………………………………................................ 14

3.2 Findings (Recruitment & Selection of AB Bank) …………………………….... 14

3.2.1 Human Resource Management……………………………………….. 14

3.2.2 Human Resource Division of ABBL ………………………………… 15

3.2.3 Core Functions of HR in ABBL ……………………………………... 16

3.2.4 Recruitment & Selection ……………………………………………... 16

3.2.5 Appointment …………………………………………………………. 18

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 3.2.6 Probationary Period ………………………………………………….. 19

3.2.7 Confirmation …………………………………………………………. 19

3.2.8 Resignation ...............................................................…........................ 19

3.3 Discussion ……………………………………………………………………………… 19

Chapter Four: Conclusion and Recommendation ………………………………… (20-21)

4.1 Conclusion ……………………………………………………………………... 20

4.2 Recommendations …………………………………………………………….... 21

References ………………………………………………………………………………...... 22

Appendix …………………………………………………………………………………… 23

x
 Chapter One: Introduction and Background

1.1 Introduction

An internship program helps a student to enrich his/her knowledge. It is a great chance for a

student to implement theoretical knowledge on workplace to gather practical knowledge. It

also helps to understand workplace environment and how an employee work and their

behavior. I have got the chance to work with a very well-known bank ABBL. From this

internship program I have learned so many things that will help me to take next step in my

professional life.

1.2 Origin of the Report

I have select the topic of this report “Recruitment and Selection of ABBL”. During my

internship I tried to implement my theoretical knowledge about HR and obtain practical

knowledge. I also tried to understand office work and responsibilities. Basically I have

covered all the major functions of HRM like recruitment, selection, training and development

and motivating employees as well as understanding other functions of HRM through this

internship period. But this report is based on their recruitment and selection process.

1
1.3 Background of the Study

This study is connected part of BBA program that all students have to submit. This report is

the outcome of three months internship in ABBL, Uttara Branch and Dhaka. It is required to

be prepared to summarize the intern’s analysis, findings and achieved knowledge.

The report titled “Recruitment and Selection of ABBL” is based on the study done in the

internship period in AB Bank. It contains how they conduct recruitment, at which hierarchy

level they need employee and select them to their qualified position. This report also

represents some other banking services.

1.4 Objectives

i. Broad objective

The general objective of the study is to gather practical knowledge about banking system and

operation as well as how human resource department. The general objectives also include:

 To achieve overall understanding of ABBL.

 To know HRM departments and their practices in different ways.

 To understand HRM policies of ABBL.

ii. Specific objective:

 First specific objective is to fulfil particular requirements of BBA program.

 Apply theoretical knowledge in to work place.

 To gather actual knowledge about recruitment and selection process of ABBL.

2
1.5 Scope of the Report

This study would focus on following topics that are listed below:

 General banking systems of ABBL

 Brief discussion on different areas

 Discussion of HR department

 Recruitment and selection process

1.6 Limitations of the Report

This report has also some limitations. These are as follows:

 Major limitation is that there is no previous study is done on this particular topic. So

mostly I have to depend on secondary information source.

 Sometimes officers felt disturbed, as they have many work to do.

 The authority didn’t share much information because of their safety.

 I couldn’t find much HR information on their website.

 Because of COVID-19 communicate with every officer was not possible to their and

my safety.

3
 Chapter Two: Industry Overview

2.1 AB Bank Limited

In Bangladesh banks play a key role in financial sector. After liberation of Bangladesh, all

financial sector including commercial carried out their operations. Day by day new banks

introduced, some rules and regulations were formulated. Because of having good offerings

and flexibility while transactions, banks gained trust from customers as well as business

houses. There are two types of bank in Bangladesh. These are, i. Scheduled bank and ii. Non-

scheduled bank. Currently, 61 scheduled banks do their operations under Bank Company

Act, 1991 and 5 non-scheduled banks. Six state owned commercial banks which are fully or

majorly owned by the government. Three specialized banks which were formed for

agricultural or industrial development.

ABBL is a commercial private bank in Bangladesh which established on 31 December 1981

and started its operation on April 12, 1982. This was the first joint venture with Dubai Bank

Limited bank in Bangladesh. The bank changed its name from AB Bank to Arab Bangladesh

Bank on 14 November 2007 by the approval of Bangladesh Bank. During the last 39 years,

ABBL has opened 105 Branches in different Business areas of the country, one foreign

Branch in Mumbai, India and also established a wholly owned Subsidiary Finance Company

in Hong Kong. Based on annual report 2019 there are 2,210 people are working. In terms of

foreign trade, the Bank made a significant image in respect of import, export and inflow of

foreign exchange remittances.

2.2 Mission and Vision

Mission:

4
“To be the best performing bank in the country”

Vision:

“To be the trendsetter for innovative banking with excellence & perfection”

2.3 Values of ABBL

AB Bank contains some core values that made this bank different from others. These are:

 Compliance

They consider adherence to national policies and objectives a priority for giving their

customers the best financial support with corporate integrity, meaning a fully compliant bank

along with involvement in social development.

 Customers

They give the best priority to their customers demand and through their endless effort they

assure the best satisfaction to customers.

 Shareholders

They assure the best returns to their shareholders by committed prudent performance.

 Team members

They provide secure, satisfying employment, ensuring the contribution of each individual to

the success of ABBL.

2.4 Corporate Information

Name of the company: AB Bank Limited (ABBL)

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Legal Form: Public limited company

Date of Incorporation: 31st December 1981

Commencement of Business: 27th February 1982

Head office address: “The Skymark”, 18 Gulshan Avenue, Gulshan-1, Dhaka-1212

GPO Box: 3522

Telephone: (+8802) 9560312

Telefax: (+8802) 9564122 – 23

SWIFT Code: ABBLBDDH

E-mail: info@abbl.com

Web Page: www.abbl.com

Auditors: ACNABIN (Chartered Accounts)

2.5 Objectives of ABBL

Maximize profit along with benefit of employees is the main objective of ABBL. Along with

main objective they have some other objectives. These are as follows:

 Bringing modern technology into banking sector to give customers easy banking

services.

 Ensure banker and customer relationship by dispensing prompt and improved client’s

service.

 Ensuring the highest use of the professional workforce.

6
  By maintenance of capital adequacy, liquidity, asset quality and highest through

successful implementation of the management core risk program.

2.6 Current Profile of ABBL

By giving high quality services in different areas of banking operations they have acquired

trust from their clients and business houses. On record of 2019, ABBL have 105 branches in

different locations where 2210 employees are working. The existing board of directors is 7.

Muhammad A. (Rumee) Ali is the Chairman of the board and Tarique Afzal is the President

and Managing Director. The bank usually give four services which are responsible for

generate revenue. These are corporate banking, SME banking, Retail banking and different

types of card. They have divided their responsibilities into different branches and the

branches are working independently.

2.7 Industry Analysis

One of the popular method of industry analysis is Michael E. Porter’s five forces framework.

It is a model that identifies five competitive forces that shape every industry and identify

industry’s weaknesses and strengths. For the past few years banking sector has changed

utmost. Porter’s five forces framework of banking industry is discussing below:

7
 Figure 1: Porter’s Five Forces Model

i. Threat of New Entrants:

 Barriers to entry

 Capital requirements

 Government politics

 Switching cost

Threat of new entrants in banking industry is low because to start a bank in this country

around 400 crore taka is required and also political support.

ii. Bargaining Power of Buyers:

 Number of customers

 Price sensitivity

8
  Buyer’s ability to substitute

In our country bargaining power of buyer in banking industry is low. Because buyer have no

power to set new rules or change existing that is given for Bangladesh Bank. They cannot

change the interest rate and charges.

iii. Bargaining Power of Suppliers:

 Number and size of suppliers

 Uniqueness of supplier’s product

Bargaining power of supplier is low in banking industry. Because banks cannot bargain more

liquidity from the buyer. Banks are bound to follow rules and regulations that is set by the

Bangladesh bank.

iv Threat of Substitutes:

 Number of substitute product available

 Switching cost

 Relative price performance of substitute

In our country threat of substitutes is low because every bank demand almost same. So buyer

have less power to switch.

v Rivalry Among Existing Competitors:

 Number of competitors

 Diversity of competitors

 Quality differences

 Brand loyalty

9
Rival against existing bank is high in our country. Because every bank have their best

strategy to retain their customers.

2.8 Management hierarchy of ABBL

Every bank follow an identical hierarchy that defines every employees work. AB Bank also

follow this hierarchy. This hierarchy is:

Chairman

Board of Director

Management Director

Deputy Executive Vice President

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

Senior Principal Officer

Principal Officer

Management Trainee (Entry Level)

Senior Officer

Trainee Officer (Entry Level)

Contractual Officer (Entry Level)

Figure 2: Management Hierarchy

10
2.9 Departments and Divisions of ABBL

2.9.1 Internal Control and Compliance

The main objective of this department is to provide legal assistance to the branches and give

recovery strategy for stuck-up loan and ensure rules and policies by all connected of the bank

through routine. Also provide surprise inspection and audit. The functions of this division are

as follows:

 Implement rescheduling process of stuck-up loan to the branches for obtaining

repayment schedule through persuasion and serve final notice etc. as the condition

required.

 Monitor the individual cases with respect to their securities, value of securities and

finally review of possibility of recovery of banks stuck-up classified loan.

 Investigate suspicious or irregular matters being directed by higher management.

 Time to time follow-up of advance to keep the branch under constant pressure.

 Carryout instant audit as felt necessary.

2.9.2 Human Resources Division (HRD)

For AB Bank, they priories there employees most. They consider them as an important asset.

Having competent and professional employees is becoming increasingly important in today’s

competitive world, and ABBL has a significant competitive advantage in this respect. Many

of its employees have worked here from the beginning of the bank. The new qualified

employees are recruited with good academic background and given proper training after

recruitment and distribute their responsibilities. At present around 19000 people are

employed with ABBL. HR division is responsible for recruitment, training, rewarding and

11
benefits of the staffs. The mission statement of HR division is “we will ensure the skilled

employments where we will work with fun and pride”.

2.9.3 Finance Departments

Finance division is very significant department for AB Bank, the main objectives of Finance

department are:

 Maintain daily liquidity positions, treasury bills, call money, debentures, placement of

fund etc.

 Monthly-accrued interest assessment of all interest bearing accounts, inter-branch

assessment, and amortization of all fixed and other assets.

 Preparation of statement of accounts and profit and loss account for the Bank.

 Cost of fund analysis.

 Maintenance of accounts, income and expenditure posting, salaries, Provident Fund,

benefits etc.

2.9.4 Credits

The main concern of credit department is the post-approval functions. Duties and

responsibilities are focused on documentation, checking limit system, monitor and

disbursement of credit products.

2.9.5 Retail Banking

Under retail banking AB Bank provide two types of loan. These are:

i. Unsecured Loan

ii. Secured Loan

12
The unsecured loans are:

This type of loans such as personal loan, easy loan (For executives), gold grace, house/office

furnishing/renovation loan, staff and education loan etc.

The secured loans are:

The secured loans are personal loan and personal overdraft.

2.9.6 Investment Banking Division

AB Bank generally does four types of Investment Banking Services. They are:

 Merchant Banking Wing

 Custodial Service

 Brokerage Service

 Future Products.

2.10 Offerings of the bank

AB bank offers different types of services to their customers. They offer general banking

services such as- receive deposit, establishing loan, opening LC etc. other services are:

 Online banking

 ATM

 Demand deposit & Pay order

 Different types of cards (Debit card, Credit card, Visa card)

 Gold grace

 Islamic banking

 Foreign exchange and Remittance

13
 Chapter 3: Methodology, Findings and Discussion

3.1 Methodology

To complete a report everyone must follow some rules and regulations. Information have

been collected from two sources. Those are:

i. Primary sources

• Direct observation

• Face to face conversation with officers

ii. Secondary sources

• Websites, Wikipedia

• Previous report

3.2 Findings (Recruitment & Selection of AB Bank)

3.2.1 Human Resource Management

HRM is the process of recruiting candidates, selecting best candidates, provide orientation,

and give training and development, appraising the performance of employees, selecting

compensation, give motivation. All the functions is called HRM. HRM involves some core

functions, these are:

 Recruitment and Selection

 Training and Development

 Motivation

 Retention or Maintenance

14
In an organization HRMD handles all aspects of employees and has various functions like

human resource planning, Conducting Job analysis, recruitment and conducting job

interviews, selection of human resources, Orienting , training, compensating, Providing

benefits and incentives, appraising, retaining, Career planning, Quality of Work Life,

Employee Discipline, black out Sexual Harassments, human resource auditing, maintenance

of industrial relationship, looking after welfare of employees and safety issues ,

communicating with all employees at all levels and maintaining awareness of and

compliance with local, state and federal labor laws.

3.2.2 Human Resource Department of ABBL

Human Resource Department of ABBL is one of the most valuable departments with the

responsibilities of recruiting, training and development, organization development,

performance appraisals, rewarding, control and maintenance etc. With the start of its

operation the Human Resource Department was not in a strong position and structured as it is

now. Fourteen competent and experienced executives are responsible for HRD. The Human

Resource Department of ABBL stands in its Head Office at Gulshan-1 under the direct

supervision of the top management.

15
3.2.3 Core Functions of Human Resources Division in ABBL:

Recruitment and
Selection

Core HR
Functions

Training and Compensation

Development and Benefits

Figure 3: Core HR Functions

In this report mainly focusing on Recruitment and Selection of ABBL.

3.2.4 Recruitment and Selection

Recruiting candidates and selecting best candidates for the job is a key responsibility for the

company. “People” are the core resource of the organization and find the best fits is a key

task. The process usually starts when a new job is created or an existing job opens up. HR

collects job description from the director of the bank and starts recruiting candidates. HR can

16
use different tools and techniques to find the best person to do the work. These includes

interview, different assessments, oral & written exams etc.

As per Bangladesh Bank BRPD Circular No. 16 dated July 24, 2003, “Appointments to the

service of the bank up to two levels below the rank of the Managing Director will be made by

the Board of Directors of the Bank”

Recruitment and selecting are one of the important inputs to healthy organizational activities.

Bank believe in a fact that retain and develop the in house talent and hire the best people in

the industry. The recruitment procedure includes observing existing employees and hire from

external sources. Set of good skills, educational background, job description are the first

criteria for a successful recruitment. For betterment of the bank, they recruit into three levels.

These are follows

 Trainee Officer

On need basis, whenever a vacancy arises; recruitment will be made through a basic job

related written test and an interview session conducting by the Head of the HRD. Suitable

candidates are selected from the dropped application for their desired posts. Minimum

qualification for this level is to graduate from any public or private University.

 Management Trainee

To develop a team of young potential fresh graduates management trainees are required.

Objectives of management trainees is to develop them as future leaders of the bank. Based on

changes in business pattern the number of selection determined. The selection process is

done through a stuff competing method. The candidates are expected to be with good

academic background from any reputed foreign or local private or public University. Written

17
examination covers information technology, mathematical knowledge, English, general

knowledge, economics and general questions. After primary selection, candidates have to

face an interview with the top management. After all procedure, there are a few candidates

who can satisfy the top management team and appointed as Management Trainee of ABBL.

 Lateral entry

External recruitment is needed when, internal sources is not available or totally a new

position created for the business need or/and a technical job arises. This may done by

newspaper advertisements in leading national dailies or throughout the online job portal

as ABBL is the corporate client of ‘BD Jobs”.

Trainee officer and management trainees are internal process of recruitment, lateral entry is

external source of finding new employees. After procedure or recruitment then appointment

or call candidate process start.

3.2.5 Appointment:

Selection process is approved by the managing director or board the appointment offer is

made. This offer consists of open period, particulars of salary, job position, facility, different

types of leaves etc. with the employment offer and the required documents with pre-medical

tests report are asked by the HR at the day of joining.

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3.2.6 Probationary Period:

Employees appointed from trainee officer to officer or internal sources will be probation

normally for one year. The probationary period for the management trainee is six month from

the joining date. During the probationary period the new incumbent’s suitability for the job

will be appraised. This period also provide the employee an opportunity to understand

weather the job is suitable or not.

3.2.7 Confirmation:

After the probationary period, if employee and management is satisfied the incumbent will be

confirmed by the management as a permanent employee of ABBL.

3.2.8 Resignation

A confirmed employee may resign the job within three months’ after the bank send notice. If

employee resign he/she will get three months’ salary. But this process should be done in

formal or proper channel.

Any partial or full waiver of notice period will be at the discretion of the managing director.

3.3 Discussion

The main concentration or focus of this report is how AB Bank recruit their employees and

select them. While doing my work I found that they recruit internal by observing their

existing employees and when they need new employee they recruit from external source.

Based on performance and behavior bank can recruit or promotion employees from internal

or existing members of the bank. Besides bank also recruit into three levels for betterment.

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 Chapter Four: Conclusion and Recommendation

4.1 Conclusion

ABBL, the pioneer private Bank of the country has created a sense of mass participation

through its diversified activities over the last 39 years. Their numbers of client’s service have

been increased rapidly over the years. For its wide range of banking service, it has got

publicity and created a special image in the banking industry in the country. ABBL has

started making profit from 1982 still now.

The report is aimed at the Recruitment and Selection in HRM. ABBL operating in the market

with the ambition of becoming the Bank of choice for its clients and all its stakeholders. It is

just natural for ABBL to deliver its customer service benchmarks high, at a level where the

local standard is far.

ABBL is committed to focus all its energy on its clients as well as its employees. Human

Resources Department in ABBL is now under developing which will ensure the future

benefits and high corporate culture and the secured place of contribution and dedication the

experience and the exposure of high professionalism.

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4.2 Recommendation

Based on the overall study I can make some recommendation that will help them to improve

HR Service quality of AB Bank. These are as follows:

1. Identical HR Policy: There should be a unique policy that help them to fine best

candidates and betterment of the company.

2. Training need assessment: ABBL has all the potential capabilities to make its

employees more efficient and future leaders. Whatever the sector, training is a

common practice for the employees to develop interpersonal knowledge or skill. The

need of training can be examined through the performance evaluation and HRD will

determine where he/she should have some more exposure.

3. Performance appraisal system: ABBL performance appraisal system can be modified

as now the technology is developing day by day. There are some popular tools and

technique that can be used by the bank to evaluate employee’s performance properly.

4. Reward and Recognition: Only higher salary package cannot satisfy a self-motivated

and exposed employee in higher level. For employees self-actualization they need

reward and recognition from their subordinates. Reward and recognition system is not

adequate for the employees. ABBL should introduce more reward system to reduce

employee turnover

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 References

Bangladesh Bank Circular:

https://www.bb.org.bd/mediaroom/circulars/circulars.php

Websites:

https://abbl.com/background-of-ab-bank-limited/

https://abbl.com/vision-mission/

List of Banks:

https://en.wikipedia.org/wiki/List_of_banks_in_Bangladesh

Annual report 2019:

https://abbl.com/investor-relations/

22
 Appendix

Organogram of AB Bank

Chairman

Board of Director

Management Director

Deputy Executive Vice President

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

Senior Principal Officer

Principal Officer

Management Trainee (Entry Level)

Senior Officer

Trainee Officer (Entry Level)

Contractual Officer (Entry Level)

23