Green Banking Practices of Agrani Bank - 2 PDF

Table of Contents
CHAPTER ONE 3
INTRODUCTION 3
1.1 RATIONAL OF THE STUDY 4
1.2 OBJECTIVES OF THE STUDY 5
1.2.1 SPECIFIC Objectives 5
1.2.2 General Objectives 5
1.3 SCOPE OF THE STUDY 5
1.4 LITERATURE REVIEW 6
1.5 METHODOLOGY 7
1.6 METHODS OF DATA COLLECTION 7
1.6.1 Conceptualization 7
1.6.2 Theoretical Framework 7
1.6.3 Sources of Data 8
1.6.4 Primary sources 8
1.6.5 Secondary Sources 8
1.6.6 Method of data collection 8
1.6.7 Data Processing and Analysis 9
1.6.8 Preparation of the Report 9
Flow Chart of Methodology 10
1.6 LIMITATIONS OF THE STUDY 11
CHAPTER TWO 12
ORGANIZATINAL OVERVIEW 12
2.1 COMPANY PROFILE 13
2.2 BACKGROUND OF THE ORGANIZATION 13
2.3AGRANI BANK’S VISION 16
2.4 AGRANI BANK’S MISSION 17
2.5 AGRANI BANK’S STRATEGIES 17
2.6 BANKS'S CORE STRENGTH 17
2.7 BANKS'S CORE VALUES 18
2.8 MANAGEMENT STRUCTURE OF AGRANI BANK 19
2.9 PRODUCT AND SERVICES OF AGRANI BANK LIMITED 20
2.10 CORE COMPETENCIES OF AGRANI BANK LIMITED 22
2.11 FUNCTION OF AGRANI BANK LIMITED 22
2.12 STRATEGY OF AGRANI BANK LIMITED 22
2.13 DEPARTMENTS OF AGRANI BANK LIMITED 23
2.14 FIVE YEARS PERFORMANCE AT A GLANCE 24
CHAPTER THREE 25
GREEN BANKING 25
3.1 WHAT IS GREEN BANKING 26
3.2 WHY GREEN BANKING 26
3.3 DEFINITIONS OF GREEN BANKING 26
Green Banking Practice of Agrani Bank Limited
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3.3.1 IN GENERAL focus 26
3.3.2 The Broad focus 26
3.3.3 The definitions derived from specialists 27
3.3.4 GREEN BANKING & SUSTAINABLE GROWTH 27
3.3.5 IDEAL BENEFITS OF GREEN BANKING 28
3.4 GREEN BANKING PRODUCTS 28
3.5 GREEN BANKING AND BANGLADESH BANKING INDUSTRY 29
3.6 BANKS CAN PLAY MAJOR ROLE IN 29
3.7 GREEN BANKING POLICY OF BANGLADESH BANK 30
3.8 BANGLADESH BANK’S GREEN BANKING INITIATIVES 33
3.9 BANGLADESH BANK’S REFINANCE SCHEME 37
3.10 BB’S IN-HOUSE GREEN ACTIVITIES 37
3.11 ENVIRONMENT RISK 38
3.12 ENVIRONMENT INFORMATION DURING 2012 39
3.13 GREEN FINANCE 40
3.14 ONLINE, INTERNET & SMS BANKING 42
3.15 MOBILE BANKING 42
3.15 ATM SERVICES BY BANKS 43
3.16 COMMON GREEN BANKING SLOGANS OF BANKS 44
3.17 TOP TEN BANKS IN GREEN BANKING ACTIVITIES 45
3.18 GREEN BANKING ACTIVITIES OF BANKS 46
3.18.1 Trust bank 46
3.18.2 mtbl 46
3.18.3 RAKUB 47
3.18.4 Bank Al-Falah 47
3.19 VISION FOR GREEN BANKING IN BANGLADESH 47
CHAPTER FOUR 48
GREEN BANKING ACTICITIES OF AGRANI BANK 48
4.1 VISION FOR GREEN BANKING OF AGRANI BANK 49
4.2 MISSION OF GREEN BANKING OF AGRANI BANK 49
4.3 ENVITONMENT RELATED INITIATIVES OF AGRANI BANK 49
4.4 GREEN BANKING INITIATIVES OF AGRANI BANK 52
4.5 IMPLEMENTATION OF GREEN BANKING POLICY BY AGRANI BANK - PANTI BRANCH 54
4.5.1 Panti Branch at a Glance 54
4.5.2 qualitative INTERVIEW AND answer 54
4.5.3 qualitative INTERVIEW AND answer 54
CHAPTER FIVE 57
FINDINGS & RECOMMENDATIONS 57
5.1 FINDINGS 58
5.2 RECOMENDATIONS 58
5.2.1 The way of to go ahead 58
5.2.2 What can do Agrani Bank LimitedSpecially Panti branch 59
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Conclusion 60
References 61
CHAPTER ONE
INTRODUCTION

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1.1 RATIONAL OF THE STUDY
The success of a program like BBA is determined by how successfully the student of this
program implemented in the practical life, which they learned from the program. Universities
take many steps to make bridge between the academic knowledge and actual business world
event of BBA students, Internship program is one of them. Internship is an integral part of BBA
program and it contains 3 credits. This program is actually a juncture of academic and
professional life dealings. It is for to get some experience of practical work environment and
also be familiar with that. My internship program started at 27 November, 2019 at Agrani Bank
Limited.
Agrani Bank Limited is doing Public Commercial Banking in Bangladesh. Banking industry
of Bangladesh is ahead one step from other financial institutions for taking endeavors to
measure and mitigate the risk of climate change caused by human and banking activity. To do
Green Banking in Bangladesh Agrani Bank Limited done of the major among our domestic
banks. The world is now become globalize so we have to sustain in the competitive world. We
must take the competitive advantage that’s why we cannot avoid the environment while doing
business. That’s why I feel very much interest in Green Banking. And it has another importance
to me that is implementation of my educational knowledge and theoretical knowledge to the
practical.

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1.2 OBJECTIVES OF THE STUDY
The main objective of the report is to identify the green banking activities practiced by Agrani
Bank Limited, which includes the following specific objectives
1.2.1 SPECIFIC OBJECTIVES:
The specific objectives of this report are
I. To draw a clear picture of Green Banking.
II. To identify the major areas and product of Green Banking.
III. To examine Agrani Bank Limited Green Banking policy and implementation.
IV. To investigate the Green Banking policy that adapted by Panti Branch.
V. To give recommendation on the basis of Finding.
1.2.2 GENERAL OBJECTIVES:
The general objective of the report is to analyze the “Green Banking of Agrani Bank Limited”.
1.3 SCOPE OF THE STUDY
We know that Bangladesh is the most preferable playground to play with people life for natural
disaster. Deforestation, dissertation, flood, soil erosion, siltation, sedimentation, river bank
erosion, increased evaporation, CO2 emissions, rising sea-level, displacement, cyclones,
Stalinization, arsenic contamination are most burning word in the present world. And all these
words are related natural disaster and very suitable to accommodate in our country. That’s why,
Green Banking open a new era for Bangladesh banking industry to create a positive image,
increase market value and contribute for developing the country. In our country. Agrani Bank
Limited is the major of welfare driven economy and promoter of balanced growth in a country
like Bangladesh which has a poverty stricken contemporary economic background. So Agrani
Bank Limited has a great opportunity to implement their mission, objectives very easily
through green banking. By adopting a comprehensive green banking policy, installing new

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green banking products, considering green banking strategies at time of loan disbursement,
developing program for the clients, mass people, and stakeholders to create awareness among
them about the environment a bank can easily practice green banking. Bangladesh Bank the
central bank of Bangladesh is already placed an order on Green Banking on February 27,
2011for the banking industry. Agrani Bank Limited Rajshahi Krishi Unnayan Bank, Mutual
Trust Bank Ltd., AB Bank Ltd., Al Arafah Islami Bank Ltd., National Bank Ltd., Uttara Bank
Ltd., Rupali Bank Ltd., Jamuna Bank Ltd., Brac Bank Ltd., United Commercial Bank Ltd.,
Basic Bank Ltd., along with Islami Bank Bangladesh Ltd., are famous for practicing green
banking in Bangladesh.
1.4 LITERATURE REVIEW
Atiur Rahman (2012) in his paper focused on the present monetary and credit policy of
Bangladesh Bank towards attaining broader financial enclosure. Bangladesh Bank is carry
forwarding with technology driven, innovative, environment and low cost banking approach;
conveying a qualitative change in banking, preparation of monetary policy, application of
advanced banking technology, and use of Information and Communication Technology (ICT)
to extend financial services to the door step of common people. To ensure access to financial
services for all, various initiatives have been taken like trade finance; digitalization of the
financial sector; channeling liquidity into productive and supply augmenting investments
including agriculture, SMEs, Green Banking and CSR activities; expected to lead to more
broad -based inclusive growth and therefore lessen poverty; required for pushing the country
on course to the targeted vision of digital Bangladesh by 2021; the year of Golden Jubilee of
their independence.
Suresh Chandra Bihari (2011) elucidated that Green Banking includes promoting corporate
social responsibility (CSR). It starts with the aim of protecting the environment where banks
consider before financing a project whether it is environment friendly and has any implications
for the future. A company will be given a loan only when all the environmental safety standards
are followed. Green Banking can be efficiently implemented through the use of technology and
policy, he emphasized.

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Green Banking Policy of BASIC Bank Limited, Bangladesh (2011) was go forwarded in
response to increasing consciousness over climate change, environmental degradation, need
for urgent measures for sustainable development to be addressed by some of the stakeholders
in the world. Banking system holds a unique position in an economy that can affect production,
business and other economic activities through their procedure for financing activities which
would in turn contribute to protect environment/climate from pollution. Moreover, efficiency
in energy use, water consumption and waste reduction may significantly contribute for
operating cost for many of the large banks of the country.
1.5 METHODOLOGY
Methodology is the study or theoretical analysis of particular working methods. Adoption of

methodology is an important factor in performing any study. If the methodology of the study
is properly adopted and the study runs properly according to the methodology, the study is
supposed to be successful. The following represents the methodology of the study.
1.6 METHODS OF DATA COLLECTION
1.6.1 CONCEPTUALIZATION:
Conceptualization is the way of developing concepts about the topic and its related matter. The
study follows a procedural approach in order to get complete picture of concentration of
different banks initiatives to green banking in worldwide and in Bangladesh especially Agrani
Bank Limited.
1.6.2 THEORETICAL FRAMEWORK
The theoretical framework is focused on the insight of the current process and techniques in
related to practice green banking to get sustainability. It emphasizes the green banking policy,
green banking strategies, green products and probable key opportunities of the products. And
their inter relationship with making the environment green.

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1.6.3 SOURCES OF DATA
In order to make the report more meaningful and presentable, data is collected from many
sources. The data collection sources can be accumulated two sources. Majority of the
information is collected from secondary sources.
1.6.4 PRIMARY SOURCES
The “primary sources” are as follows-
I. Officers
II. Supervisor
III. Clients
1.6.5 SECONDARY SOURCES
The “Secondary Sources” of data and information are:
I. Annual Report (Last five years) of Agrani Bank Limited.
II. Periodicals published by Bangladesh Bank.
III. Various books, articles, compilations etc. regarding green banking functions, and the
policies.
IV. Relevant file study as provided by the officers concerned.
1.6.6 METHOD OF DATA COLLECTION:
I. Face-to-face conversation with the respective officers and staffs of the Branch.
II. Informal conversation with the investment clients.
III. Practical work exposures form the different desks of the four departments of the Branch
covered.

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1.6.7 DATA PROCESSING AND ANALYSIS:
Collected data and information both from primary and secondary sources were analyzed. Raw
data collection from survey and edited and then classified according to the objectives. I have
used some techniques for the purpose of analysis. These are:
Theoretical analysis
Graphical analysis
Tabular analysis
1.6.8 PREPARATION OF THE REPORT:
Following steps are associated with the preparation of this thesis:
I. Representations of the assembled data through graph
II. Preparation of the draft report
III. Preparation of the final report

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FLOW CHART OF METHODOLOGY
Following is the flow chart of the study:
Conceptualization
Developing Theoretical Framework
Fixing Goals and Objectives
Data Collection
Primary Data Secondary Data
Branch Investigation Related Organization
Identification of the
Data Organization Potential Problem
Data Processing, Interpretation and Analysis
Findings
Recommendations

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1.6 LIMITATIONS OF THE STUDY
It is obvious that every study has some limitations. The study I have made is of great importance
and require me huge work. While conducting I had to face a number of problems. Which called
limitations of my report? Those constraints that hampered my smooth workings in bank and
finally in preparing this report are as follows:
The time period of this study is very short. We had only 12 weeks in my hand to
complete this report, which was not enough. So I could not go in depth of the study.
Most of the times, the officials were busy and were not able to give me much time.
Green Banking Technology is newly come to our country, so, there is no accurate
information available.
There were some restrictions to have access to the information confidential by concern
authority.
I have no proper experience to do this kind of report. So, inexperience creates obstacles
to follow the systematic and logical research methodology.

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CHAPTER TWO
ORGANIZATINAL OVERVIEW

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2.1 COMPANY PROFILE
Name of the company Agrani Bank Limited

Chairman: Dr. Zayed Bakht
Managing Director: Mr. Syed Abdul Hamid
Company Secretary: Badal Chandra Dey
Legal Status: Public Limited Company
Date of Incorporation: 1972
Registered Office: 9/D Dilkusha, Dhaka 1000, Bangladesh
Authorized Capital: Tk. 2,500.00 Crore
Paid up Capital: Tk. 2,072.29 Crore
Tax Identification No. 0022001223
+88-02-9566153-4, +88-02-9566160-9,
Phone:
+88-02-9566074-5
+88-02-9562346, +88-02-9563662, +88-02-
Fax:
9563658
agrani@agranibank.org,
E-mail:
info@agranibank.org
Website: www.agranibank.org
(Source-Annual Report 2018)
Table 2.1: Company Profile of Agrani Bank Limited
2.2 BACKGROUND OF THE ORGANIZATION
Agrani Bank a nationalized commercial bank established under the BANGLADESH BANKs
(Nationalization) Order 1972. The bank was created by taking over the branches of two
abandoned Pakistani banks-the Habib Bank Limited and Commerce Bank Limited, which
functioned in East Pakistan. With its head office at DHAKA, the bank started its operations
with an initial authorized capital of Tk.50 million and paid up capital of Tk.10. million. The
authorized capital was raised to Tk.30 million in 1973. Since then the authorized and paid up
capital remained unchanged till December 1983. Later, both were increased from time to time

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and their amounts stood at Tk. 20 billion and Tk.5 billion respectively on 31 December 2018.
The reserve funds of the bank on that date were Tk.367 million. In addition to traditional
deposit taking in various accounts and providing loans to almost all sectors of the economy,
the bank offers different types of other services and conducts 'off-balance sheet (OBS)'
activities. The value of assets created by the OBS activities of the bank was Tk. 26.07 billion
in 1998 and Tk. 25.46 billion in 2018. The agency services of the bank include making
payments to different public sector corporations and acting as paymaster in the government's
food procurement scheme. The bank provides loans and advances to not only the clients of
selected groups like the traders and industrialists but also to people of all classes and
professions. Side by side with industry and commerce, agriculture and other priority sectors
also receive funding and advisory services support from the bank. Agrani Bank disburses
government grants to the teachers of private and public educational institutions.
Agrani Bank has a large participation in foreign exchange business including overseas
remittance services. The total volume of foreign exchange business handled by the bank in
servicing imports and exports and remittances during 1999-2000 amounted to Tk. 40.312
billion. In 2018, the bank had correspondent relationships with 1,180 foreign banks/bank
offices. In 1972, Agrani Bank started its banking operations with a total initial deposit of Tk.
1.57 billion. Ever since the bank has been making continuous and sustained efforts to mobilize
deposits from untapped resources in both urban and rural areas. A special deposit mobilization
programmed introduced by the bank in 1976 resulted in remarkable increases in the volume of
its deposits, which grew at a rate of approximately 63% and 42% during 1972-74 and 1978-80.
The deposits growth rate in 2018 was 8.2%. The volume of loans and advances of the bank was
Tk.1.13 billion in 1972 and it increased to Tk.5.28 billion in 1984. Major areas that received
financing from the bank were jute trade, jute industries, tanneries, sugar industries, textile trade
and industries, transport, iron and steel, tea plantation and trade, livelihood trades/income
generating activities and housing.
The credit portfolio of the bank expanded manifold after the 1980s and covered almost all
sectors of the economy. The bank was a major participant and a provider of funds in the Tk.10
billion Special Agricultural Credit Program (SACP) launched by the government in 1977. The
total amount of its loans and advances stood at Tk.225732million in 2018. Loans and advances
provided by the bank to the broad economic areas up to 30 June 2018 were: agriculture and
fisheries, industry (small and cottage, and large and medium), retail/wholesale trade and hotels

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and restaurants transport & communication and storage, special credit program including
poverty alleviation and others
During 1999, Agrani Bank disbursed Tk.16.383 billion in loans and advances and the recovery
during the year was Tk.4.541 billion. In 2018, the recovery rate was 30% of total outstanding
loans. The amount of overdue loans and advances on 30 June 2000 was Tk 27.34 billion and
on 30 June 2000, the ratio of total overdue to total outstanding loans was 37.12%. Poor loan
recovery and the increase in the amount of overdue loans caused a fall in the quality of its
lending assets. The bank's total classified loan amounted to Tk. 23.63 billion on 31 December
2000.Janata Bank monitors its work through a performance budget. It has a marketing
intelligence unit and conducts a program of human resources development through training and
motivation. It introduced the Lending Risk Analysis suggested by the Financial Sector Reform
Program. Business policies of the bank in the 1990s included fulfilling capital adequacy
requirement, mobilizing deposits in large amounts, and making investments in more profitable
ways. The bank diversified its activities in off-balance sheet items to expand its area of
operations and increase non-interest based incomes.
The management of the bank is vested in a 13-member board of directors appointed by the
government. The managing director is the chief executive and he is assisted by a deputy
managing director, six general managers and other senior executives. The general managers
are in charge of the bank's branches in six administrative divisions of the country namely,
Dhaka, Chittagong, Rajshahi, Khulna, Sylhet and Barisal. At the head office, the bank has 27
departments including a training institute. On 30 June 2018, the bank had a total of 14000+
employees. Up to 31 December 2018, the bank had 864 domestic and 4 overseas branches (in
the Middle-East). Among the domestic branches, 348 were in the urban areas and 526 in the
rural areas.
Agrani Bank At a Glance

 Agrani Bank Limited, one of the state owned commercial banks in Bangladesh, has an
authorized capital of Tk. 20000 million (approx. US$ 283.33 million), paid up capital
of Tk. 5000.00 million, reserve of Tk.10823.01 million and retained surplus Tk.
5167.18 million. The Bank has a total asset of Tk. 345233.92 million as on

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31st December 2018. Immediately after the emergence of Bangladesh in 1971, the
erstwhile Habib Bank Limited and Commerce Bank Limited were renamed as Agrani
Bank. On 17th May, 2016 the bank has been corporatized and renamed as Agrani Bank
Limited as a private limited company.
 Agrani Bank Limited operates through 864 branches including 4 overseas branches at
United Arab Emirates. It is linked with 1202 foreign correspondents all over the world.
 The Bank employs more than 14(Fourteen) thousand persons.
 The mission of the bank is to actively participate in the socio- economic development
of the nation by operating a commercially sound banking organization, providing credit
to viable borrowers, efficiently delivered and competitively priced, simultaneously
protecting depositor’s funds and providing a satisfactory return on equity to the owners.
 The Board of Directors is composed of 10 (Ten) members headed by a Chairman. The

Directors are representatives from both public and private sectors.
 The Bank is headed by the Chief Executive Officer & Managing Director, who is a
reputed banker.
 The corporate head office is located at Dhaka with 10 (ten) Divisions comprising of 37
(thirty seven) Departments
2.3 AGRANI BANK LIMITED VISION
Agrani Bank Limited dreams of better Bangladesh. Where arts and letters, sports and athletics,
music and entertainment, science and education, health and hygiene, clean and population free
environment and above all a society based on morality and ethics make all our lives worth
living. Agrani Bank’s essence and ethos rest on a cosmos of creativity and the marvel magic
of a charmed life that abounds with spirit of life and adventures that contributes towards human
development.

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2.4 AGRANI BANK LIMITED MISSION
To mobilize financial resources from within and abroad to contribute in Agriculture's, Industry
& Socio-economic development of the country and to play a catalytic role in the formation of
capital market by:
Anticipating business solutions required by all Agrani Bank Limited customers everywhere
and innovatively supplying them beyond expectation. Setting industry benchmarks in
delivering customer value through our comprehensive product range, customer service and all
our activities. Building and exciting team based working environment that will attract, develop
and retain employees of exceptional ability who help celebrate the success of bank’s business
of bank’s customers and of national development. Maintaining the highest ethical standards
and a community responsibility worthy of a leading corporate citizen. Continuously improving
productivity and profitability and thereby enhancing shareholder value.
2.5 AGRANI BANK LIMITED STRATEGIES
To strive for customers best satisfaction & earn their confidence.

To manage & operate the Bank in the most effective manner.
To identify customer’s needs & monitor their perception towards meeting those
requirements.
To train & develop all employees & provide them adequate resources so that the
customer’s needs are reasonably addressed.
To promote organizational efficiency by communicating company plans, polices &
procedures openly to the employees in a timely fashion.
2.6 BANKS'S CORE STRENGTH
 Professionally strong Board of Directors

 Strong capital base
 Transparent and Quick Decision making
 Efficient team of performers
 Satisfied Customers
 Internal Control
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 Skilled Risk Management
 Diversification
 Quality Customer service
 Unique Corporate Culture
 Sharp Bifurcation between Board and Management
 Strong Asset Base
2.7 BANK'S CORE VALUES
 Integrity: Agrani Bank Limited protects and safeguards all customer information. ABL
treats everyone in an equitable and consistent manner. ABL creates an environment,
which earns and maintains customer trust.
 Open Communication: Agrani Bank Limited builds customer relationships based on
integrity and respect. Agrani Bank Limited offers a full line of products and excellent
service. Agrani Bank Limited is committed to the prosperity of the customers and
shareholders.
 Performance Drivers: In Agrani Bank Limited, customers and employees are judged in
terms of their performance.
 Continuous Self Improvement: Continuous learning, self-challenge and strive make
ways for self-improvement of workforce at Agrani Bank Limited.
 Quality: Agrani Bank Limited offers hassle free better service quality. Agrani Bank
Limited builds-up quality assets in the portfolio.
 Teamwork: Interaction, open communication, and maintaining a positive attitude reflect
Agrani Bank Limited’s commitment to a supportive environment based on teamwork.

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2.8 MANAGEMENT STRUCTURE OF AGRANI BANK LIMITED

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2.9 PRODUCTS AND SERVICES OF AGRANI BANK LIM ITED
1. DEPOSIT
a) Taka Account
• Current Deposit (CD)
• Savings Deposit (SB)
• Fixed Deposit (FDR)
• Special Notice Time Deposit (SNTD)
• Non-Resident Special Taka Account (NRTA)
• Non-Resident Investors Taka Account (NRIT)
• Agrani Bank Pension Scheme (APS)
• Agrani Bank Bishesh Shanchay Scheme (ABS)
• Agrani Double Benefit Scheme (ADBS)
• Monthly Deposit Scheme (MDS)
• Monthly Income Scheme (MIS)
• Students Savings A/C (School Banking)
• Small Life Insurance Policy Holders A/C
• Farmers A/C
• Freedom Fighters A/C
• Other Beneficiaries A/C under Social Securities
b) Foreign Currency Account

• Foreign Currency (FC) A/C
• Non-Resident Foreign Currency Deposit (NFCD) A/C
• Resident Foreign Currency Deposit (RFCD) A/C
• Exporters Retention Quota (ERQ) A/C
2. LOANS & ADVANCES
a) Continuous Loan
• Cash Credit (Hypo)
• Cash Credit (Pledge)
• Secured Overdraft (SOD)

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b) Term Loan
• Inland Bill Purchase (IBP)
• Export Cash Credit
• Industrial Credit (IC)
• Housing Loan (General & Commercial)
• Consumer Credit
• Loan for Overseas Employment
• Weavers’ Credit
c) Rural & Agro Credit

• Crop Loan
• Fishery Loan
• Animal Husbandry Loan
• Agri Machinary Loan
• Rural Transport Loan
• Swanirvar Loan
• Poverty Alleviation Loan
d) Small and Medium Enterprise Loan

• Service Sector Loan
• Trading Sector Loan
• Manufacturing Sector Loan
e) Import Finance
• Loan Against Imported Merchandise (LIM)
• Loan Against Trust Receipt (LTR)
• Payment Against Document (PAD)
f) Export Finance
• Export Cash Credit
• Packing Credit (PC)
• Local / Foreign Bills Purchased (FBP)
• Loan Against Export Development Fund (EDF)
• Advance Against Cash Incentive (Subsidy)
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2.10 CORE COMPETENCI ES OF AGRANI BANK LIMITED
 Knowledge
 Experience & Expertise
 Customer Orientation / Focus
 Transparency
 Determination
 Zeal for Improvement
 Pursuit of Disciplined Growth Strategies
2.11 FUNCTIONS OF AGRANI BANK LIMITED

 To maintain all types of deposit A/Cs.
 To make investment.
 To Conduct Credit / loan facilities.
 To conduct foreign exchange business.
 To conduct other Banking services.
 Agricultural & Rural Credit.
 Export Development Fund.
 Green Banking.
 Financing Women Entrepreneurs.
 Loan Classification and Provisioning.
 Credit Monitoring, Early alert and management of non-performing loans.
 Recovery of classified and written off loans.
 International Trade operations.
 SWIFT operations.
 Treasury Operations and Fund Management.
 Information Technology (IT).
2.12 STRATEGY OF AGRANI BANK LIMITED

 To manage and operate the Bank in the most efficient manner to enhance financial
performance and to control cost of fund.
 To strive for customer satisfaction through quality control and delivery of timely
services.
 To identify customers credit and other banking needs and monitor their perception
towards our performance in meeting those requirements.

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 To review and update policies, procedures and practices to enhance the ability to
extend better services to customers.
 To train and develop all employees and provide adequate resources so that
customer needs can be responsibly addressed.
 To promote organizational effectiveness by openly communicating company
plans, policies, practices and procedures to all employees in a timely fashion.
 To cultivate a working environment that fosters positive motivation for improved
performance
 To increase direct contract with customers in order to cultivate a closer
relationship between the bank and its customers.
2.13 DEPARTMENTS OF AGRANI BANK LIMITED

 Human Resources Division
 Personal banking Division
 Treasury Division
 Operations Division
 Computer and Information Technology Division
 Credit Division
 Finance & Accounts Division
 Financial Institution Division

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2.14 FIVE YEARS PERFORMANCE AT A GLANCE
2014 2015 2016 2017 2018
Source: Annual report of ABL 2017-2018

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CHAPTER THREE
GREEN BANKING

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3.1 WHAT IS GREEN BANKING
Green Bank means

An ethical bank
A socially responsible bank
A sustainable bank.
Green Banking is to support:
Innovative green products
Activities those are not hazardous to environment and help conserve environment.
3.2 WHY GREEN BANKING
To help safeguard the planet from

unusual weather pattern;
rising greenhouse gas;
Declining air quality.
For ensuring green economic growth: economic growth which is sustainable.
To meet one of the Millennium Development Goals: Ensure Environmental
Sustainability.
3.3 DEFINITIONS OF GREEN BANKING
3.3.1 IN GENERAL FOCUS
Green Banking is like a normal bank which considers the entire social and environmental
factors; it is also called as an ethical bank. Ethical banks have started with the aim of protecting
the environment.
3.3.2 THE BROAD FOCUS
Green banking refers to the efforts of the Banking sector to keep the environment green and to
minimize greenhouse effects through rationalizing their strategies, policy, decisions and
activities pertaining to banking service, business and in-house operational activities. Green

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banking may be seen as a component of the global initiative from Banks end to save
environment. Green banks or environmentally responsible banks do not only improve their own
standards but also affect socially responsible behavior of other business. Green banking can
benefit the environment either by reducing the carbon footprint of consumers or banks. Green
banking means combining operational improvements and technology, and changing client
habits.
3.3.3 THE DEFINITIONS DERIVED FROM SPECIALISTS:
Sherman stresses (Key Differentiator of Green Choice Bank, Chicago):
“With green banking, what sets leaders apart from the rest is...how you invest back
in the community, so we are trying to develop loan products and deposit products
that reward good environmental choices”.
Justin Pritchard (columnist, about com): “Green Bank is a bank focusing on

sustainability. It is bank like others but they are to claim the "green banking” niche,
and they hope to excel by serving companies and individuals interested in green
business. For the most part, the bank will work with businesses that find ways to do
more and use less”.
3.3.4 GREEN BANKING & SUSTAINABLE GROWTH
Sustainable development meets the need of present generation without compromising the
ability of future generation to meet their own needs. The key to sustainable development is to
ensure broad-based inclusive economic growth, with:
Promotion of natural resources;
Preservation of regenerating capacity of ecological system;
Avoidance of environmental risks on future generations.
Banking sector can play an intermediary role between economic development and
environmental protection.

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3.3.5 IDEAL BENEFITS OF GREEN BANKING
Basically Ethical (Green) banking avoids as much paper work as possible and rely on
online/electronic transactions for processing so that you get green credit cards and green
mortgages. Less paperwork means less cutting of trees.
Creating awareness to business people about environmental and social responsibility
enabling them to do a environmental friendly business practice.
Green (Ethical) banks adopt and implement environmental standards for lending, which
is really a proactive idea that would enable eco-friendly business practices which would
benefit our future generations.
When you are awarded with a loan, the interest of that loan is comparatively less with
normal banks because ethical banks give more importance to environmental friendly
factors - ecological gains. Natural resources conservation is also one of the underlying
principles in a green bank while assessing capital/operating loans to
extracting/industrial business sector.
3.4 GREEN BANKING PRODUCTS
Until a few years ago, most traditional banks did not practice green banking or actively seek
investment opportunities in environmentally-friendly sectors or businesses. Only recently have
these strategies become more prevalent, not only among smaller alternative and cooperative
banks, but also among diversified financial service providers, asset management firms and
insurance companies. Although these companies may differ with regard to their stated
motivations for increasing green products and services (e.g. to enhance long-term growth
prospects, or sustainability principles on which a firm is based), the growth, variation and
innovation behind such developments indicate that we are in the midst of a promising drive
towards integrating green financial products into mainstream banking.
This product and service review is divided into the following banking sectors:
Retail Banking
Corporate & Investment Banking
Asset Management
Insurance

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3.5 GREEN BANKING AND BANGLADESH BANKING INDUSTRY:
The climate of Bangladesh has already been exposed to global warming due to
environmental pollution followed by climate degradation although she can’t be accused to
be responsible for these issues. However, the climate of the country is rapidly deteriorating
due to recklessness of her citizens and inefficient & ineffective use of natural/semi-
natural/manufactured/processed/ transformed resources. Natural disasters like cyclone, flood,
draught and earthquake become very frequent. As such, state of environment in Bangladesh
needs proper attention and up-gradation for ensuring a better future for our successors. In
response to increasing awareness over climate change, environmental degradation, urgent
measures for sustainable development have been addressed by some of the stake holders all
over the world. Banking system hold a unique position in an economy that can affect
production, business and other economic activities through their procedure for financing
activities which would in turn contribute to protect environment/climate from pollution.
Moreover, efficiency in energy use, water consumption and waste reduction may
significantly contribute for operating cost of many of the large banks of the country.
Projects/Businesses those include waste prevention and resource efficiency systems in a wide
range of sectors including community, commercial and business organizations - such as
shopping centers, regional airports, hospitals, construction, farms, a university, public
organizations, and educational organizations are receiving enhanced attention these days.
The growing financial sector especially banks in Bangladesh can play key role as one
of the important stake-holders of the economy enforcing the businessmen/industrialists of the
country to design their strategy/action plan keeping in mind the vital environmental issues.
3.6 BANKS CAN PLAY MAJOR ROLE IN
Embracing and offering environment friendly

online banking products. E.g. Mobile banking;
online banking.
Providing incentives to customers to use green
products. E.g. Green credit cards, Green savings
accounts, Green checking accounts.
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To promote sustainable environment friendly initiatives undertaking through adoption
of a set of principles and strict adherence to those principles.
To contribute to the national/global interest through avoidance of financing in
specific industry/project/process/business, being harmful or tend to be causing harm to
the environment even if they are financially viable;
To create an atmosphere for the bank and/or its both existing and potential clients to
work within an ideal business environment through innovative marketing of
innovative banking products;
To encourage the employees, the existing and potential clients and other
stakeholders to develop, practice & promote for developing & using Environment
friendly /Green Technology/products/production process
To develop the attitude among the employees to motivate, encourage the
stakeholders through initialization of appropriate in-house environmental risk
management system through introduction of appropriate technology;
To sponsor awareness programs for environment friendly products/technology
through practice of Corporate Social Responsibilities (CSR).
3.7 GREEN BANKING POLICY OF BANGLADESH BANK
The broad objectives of the Banks are using their resources with
responsibility to grow- trade, commerce, service, industry,
income, employment generation, business and other economic
activities. A Bank which is socially responsible, environmentally
cognizant and follows a path of sustainability with automation
and efficiency is called Green Bank.
SL Nature of The Job Function (descriptions of the job)

1 Sector Specific I. Agriculture, Agri-business (Poultry & Dairy), Agro
Environmental farming
Policies be II. Leather (Tannery)
designed III. Fisheries
IV. Textile and Apparels

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V. Renewable Energy
VI. Pulp and Paper
VII. Sugar and distilleries
VIII. Construction and Housing
IX. Engineering and Basic Metal
X. Chemicals (Fertilizers, Pesticides and
XI. Rubber and Plastic Industry
XII. Hospital/Clinic, Chemical Trading
XIII. Brick Manufacturing
XIV. Ship breaking etc.
2 Green Strategic Determine green targets
Planning I. To determine a set of achievable targets and strategies.
II. To disclose these in the annual report and web-site for
green financing and in-house management.
Target areas for in-house management:
i. To attain energy efficiency in the form of the use of renewable
energy.
ii. To reduce electricity, gas and petrol consumption.
iii. To reduce of Green House Gas (GHG) emissions.
iv. To have environment friendly office building.
v. To issue e-statements, electronic bill pay.
vi. To save papers.
Target areas for green financing:
i. To reduce investments for environmentally harmful activities.
ii. To attain a particular percentage of environmental investment.
iii. To introduce eco-friendly financial products.
3 Setting up Green Features of Green Branches:
Branches To use maximum natural light
To use renewable energy
To use energy saving bulbs and other equipments.
To reduce water and electricity use.
To use recycled water.

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A green Branch will be entitled to display a special logo
approved by Bangladesh Bank.
4 Improved In-house To take Strategy of reuse, recycling of materials &

Environment equipment’s, and source reduction and waste
Management minimization.
To rely increasingly on virtual meeting through the use
of video conferencing in lieu of physical travel for saving
cost and energy.
5 Formulation of To develop and follow an environmental risk
Bank Specific management manual or guidelines for the assessment/
Environmental monitoring of project and working capital
Risk Management loans/investments.
Plan and To set internationally accepted higher environmental
Guidelines. standards.
6 Rigorous To encourage/ influence the clients and business houses
Programs to comply environmental regulation.
Educate Clients to be To introduce rigorous program to educate clients.
undertaken.
7 Disclosure and To start publishing independent Green Banking and
Reporting of Sustainability reports showing past performances,
Green Banking current activities, and future initiatives.
Activities. To disclose update and detail information about Bank’s
environmental activities and performances of major
clients.

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3.8 BANGLADESH BANK’S GREEN BANKING INITIATIVES:
According to the BRPD Circular 02 dated February 27, 2011, the policy guideline for green
banking should be implemented by the banks in three different phases by the year 2011, 2012
and 2013 consecutively. The guideline assures that the compliant banks would get preferential
treatment like reward points for CAMELS rating and priority in getting approval for new
branches. Besides, the names of top ten banks for their overall performance in green banking
will be posted on the central bank websites.
Banks shall report their green banking initiatives/activities under the said program to the
Department of Off-site Supervision of Bangladesh Bank on quarterly basis. The first report
shall be submitted within 15 th July 2011 containing information up to 30th June 2011 and
similarly they will be required to continue to submit reports on the subsequent quarters within
the next 15 days of the respective quarter end.
The guidelines for introducing green banking practice by the banks are described below phase
by phase.
Phase-1(1st January 2011-31st December 2011):
According to the guidelines of phase 1, banks are required to formulate and adopt a broad
environmental or Green Banking policy and strategy approved by their Board of Directors in
case of local commercial banks and by their Regional Head/Competent authority in case of
foreign commercial banks operating in Bangladesh. Major emphasize has been given on policy
making first because if policy is not there or if it is not approved by the competent authority,
then the adaptation and implementation of Green Banking activities may be trackless.
Banks should establish a green unit or cell responsible for designing, evaluating and
administering related green banking issues of the bank and allocate a fund in budget for green
banking practice which will include (i) Budget for Green Finance (ii) Budget for Climate
Change Risk Fund and (iii) Budget for Marketing & Capacity Building for Green Banking.
Bank shall also incorporate Environmental and Climate Change Risk as part of the existing
credit risk methodology on Environmental Risk Management (ERM) as prescribed on January
2011 to assess a prospective borrower.
Banks should introduce in house green banking initiatives like use of paper on both sides for
internal consumption, introduction of e-statement for customers, use of online communication
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among the employees, using more daylight instead of electric lights and proper ventilation in
lieu of using air conditioning, using energy saving bulbs, use of Eco Font for printing, avoid
disposable cups/glasses, Video/Audio conference in lieu of physical travel, conversion of
Bank’s vehicles into CNG and use of energy efficient electronic, use of solar energy/
renewable energy sources etc.
Eco friendly business activities and energy efficient industries will be given preference in
financing by bank. Environmental infrastructure such as Financing Green Projects/Events such
as ETP, projects having ETP, bio-gas plant, bio-fertilizer plant, solar panel/renewable energy
plant, solar irrigation pumping station, solar home system, solar PV module assembling plant,
Hybrid Hoffman Kiln (HHK) should be encouraged and financed by bank. Any project/event
financed by banks for producing energy resource efficient products or any project/event
financed by banks for possible safeguards and mitigating hazards due to environmental
condition or climate change and others should also be financed under Green financing program.
Bank should finance the economic activities of the flood, cyclone and drought prone areas at
the regular interest rate without charging additional risk premium. However, banks should
create a Climate Change Risk Fund. The Climate Risk Fund will cover (i) Fund for part of CSR
activities (Event) that are related to Climate Change Risk and (ii) Fund for part of CSR
activities (Project) related to Climate Change Risk.
Banks should introduce Green products and conduct an awareness development programs
among the common people. Banks should emphasize on the introduction of Online banking
such as making bank transactions or paying bills via the Internet. Banks should give more
emphasis to make the easiest way to help environment by eliminating paper waste, saving gas
and carbon emission, reducing printing costs and postage expenses. Banks should also establish
ATM booths as many as possible and those ATM booths should be powered by solar energy.
Banks should arrange employee awareness development and training programs on

environmental and social risk and the relevant issues on continuous basis. Awareness
development programs may also be conducted among consumers and clients under its public
relation department. Each bank shall report on the initiatives and practices taken within the
period 31st December 2011 to Off-site Division of Bangladesh Bank and disclose in their
respective websites.

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Phase -2 (1st January-31st December 2012)
In the second phase, banks are advised to take specific policies for different environmental
sensitive sectors such as agriculture, poultry, dairy, farming, tannery, fisheries, textile and
apparels, renewable energy, pulp and paper, sugar and distilleries, construction and housing,
engineering and basic metal, chemicals, rubber and plastic industry, hospital and clinic,
chemical trading, brick manufacturing and ship breaking. According to the guideline, banks
will also adopt a green strategic plan, determining their target for green banking and developing
a system of environment management. For in-house environment management, the target areas
should cover attaining energy efficiency in the form of the use of renewable energy, reduction
of electricity, gas, and petrol consumption, reduction of Green House Gas(GHG) emissions,
issuance of e-statements, electronic bill pay, saving papers, environment friendly office
buildings etc.
For Green Financing, the target areas should cover reducing loans for certain environmentally
harmful activities, attaining a particular percentage of environmental loans as percentage of
total, introducing eco-friendly financial products etc.
The newly established branch should be featured by the provision of the maximum use of
natural light, use of renewable energy, use of energy saving bulbs and other equipment’s,
reduced water and electricity use, use of recycled water etc. Bangladesh Bank will approve a
logo for such type of branch and should be specifically designated as a ‘Green Branch’.
Banks should also formulate specific environmental risk management plan and guidelines and
start rigorous programs to educate clients.
In this phase, banks should start publishing independent Green Banking and Sustainability
reports showing past performances, current activities, and future initiatives. Updated and
detailed information about banks environmental activities and performances of major clients
should also be started to disclose.
Phase-3 (1st January 2013-31st December 2013)
The last phase will start form 1st January 2013 and will come to an end on 31st December 2013.
The banks are advised in this phase to take some important initiatives for making their green
practice more fruitful. Banks should place a system of Environmental Management before the
initiation of this Phase-3. Standard environmental reporting with external verification should
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be part of this phase. Banks should Design and introduce innovative products alongside
avoiding negative impacts on environment.
Banks should publish independent Green Annual Report following internationally accepted
format like Global Reporting Initiatives (GRI) targeting their stakeholders.
Chart: Strategy framework of Green Banking Activities

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3.9 BANGLADESH BANK’S REFINANCE SCHEME:
BB is providing to the lending banks refinance at five percent interest per annum, from a taka
2.00 (two) billion refinance window accessible against financing for revolving eco-friendly or
initiatives like installation of bio mass based, solar and other renewable energy generation
units, effluent treatment plants, adoption of new energy efficient output processes and so
forth.
As of December 2012, taka 853.54 million out of taka 2.0 billion revolving fund allocated by
BB to the following green categories
Category Amount (Taka in Millions)
Solar irrigation pump 23.90
Solar home system 102.84
Biogas plant 262.70
Effluent Treatment Plant (ETP) 90.40
Hybrid Hoffman Kiln (HHK) 124.80
Solar PV module assembling plant 248.80
Total 853.54
Around taka 853.54 million has been disbursed under Refinance Line of BB of which 43.99%
30.8%, 14.62% and 10.59% was disbursed for Solar Energy, Biogas, Hybrid Hoffman Kiln
and Effluent Treatment Plant respectively.
Bangladesh Bank is supporting financing of renewable energy generation and other
environmentally benign projects. BB has disbursed taka 251.23 million and 853.54 million
till December 2011 and December 2012 respectively.
3.10 BB’S IN-HOUSE GREEN ACTIVITIES:
BB is concentrating on its in-house green activities through the most effective utilization of
resources (power, gas, fuel, water, paper etc.).
 With a move towards encouraging green banking in Bangladesh, Bangladesh Bank

installed 8 kilowatt solar power system on its rooftop in March 2010. This is now

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being extended to 20 kilowatt to cover more areas.
 LED bulbs are being installed to bring significant energy efficiency.
 As part of central bank automation, Bangladesh Automated Clearing House (BACH),
Credit Information Bureau online, Enterprise Resources Planning (ERP), Enterprise
Data Warehouse (EDW), e-tendering, and e-recruitment have come into reality. National
Payment is in live operation since 2012. Rajshahi Krishi Unnayan , Pubali & BDBL are
now connected with NPSB and doing live transaction.
 The overall banking functions of Bangladesh Bank (including all departments and
branch offices relating to banking functions) have been brought under automation by
implementing the Banking Application Package that includes Core Banking Module,
Treasury Management Module and Market Infrastructure module.
 All the departments of Bangladesh Bank Head Office and its nine branch offices have
already been brought under a computer network (LAN/WAN), connecting more than
3,800 PCs.
 Environmentally harmful incineration of non re-issuable damaged bank notes is being
phased out, resorting instead to shredding.
 Online salary and other necessary advice, personal file updated information, office
orders, notification online balance statements for all employees of BB, electronic
passes for visitors are instantly available.
 A recent initiative has been taken to convert the 30-storied building of Bangladesh
Bank into a Green Building with the modern facilities of rain water harvesting, waste
water recycling and motion sensor energy efficient bulbs supported by window based
solar panels.
3.11 ENVIRONMENT RISK:
Environmental risk is not a part of credit risk; rather it is a facilitating element of credit risk
when it is linked with the credit risk due to environmental condition/climate change.
Incorporation of environmental risk is required to be incorporated in the Core Risk
Management (CRM) that mandates considering EnvRR in the overall credit risk methodology.
Incorporation of environmental risk in CRM is also important for computation of adequate
capital under Risk Based Capital Adequacy (RBCA) and the CAMELS rating under off-

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site supervision as well. Banks are now assessing EnvRR following the Environmental
Due Diligence (EDD) Checklist of Environmental Risk Management (ERM) guideline.
Sources of Environmental Risks
3.12 ENVIRONMENT INFORMATION DURING 2012:
Banks have started Environmental Risk Rating (EnvRR) since July 2011. Banks have done
environmental risk rating in 4394 and12088 projects in 2011 and 2012. The numbers of
projects rating in 2012 have increased more than three times higher than the previous year.
Similarly 4315 and 11165 projects (disbursed amount is Tk. 270951.14 & 703633.21) have
been financed after rating in 2011 and 2012 respectively.
Figure: Amount Disbursement to Rated Projects

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Table: Environmental Risk Rating Comparison between 2011 & 2012
Year 2011 2012

Number of Projects Rated 4394 12088
No. of Projects Financed after Rating 4315 11165
Amount Disbursed to the Rated Projects (in million 270951.14 703633.21

taka)
3.13 GREEN FINANCE
Green finance combines both direct and indirect green finance. Source of Bank’s direct green
finance may be bank’s own fund or Bangladesh Bank’s for renewable energy and
environment friendly projects. Indirect green finance means financing the projects having
ETP or alike system.

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Out of taka 270921.53 million, Private Commercial Banks (PCBs) have maximum contribution
(66%) whereas State Owned Commercial Banks (SCBs) and Specialized Development Banks have
only 2% and 3% respectively. Top ten banks are contributing to a great extent having 90% share of
the total Green Finance. Exim Bank Ltd. is on the top among them with more than 15% share.
Banks have disbursed in different green products/events as taka 1356.52 million in ETP, taka
259100.05 million in project having ETP, taka 899.87 million in Bio-gas plant, taka 3638.37
million in solar/ renewable energy and taka 1830.33 million in HHK etc. during 2012.
Green Projects/Events SCBs PCBs FCBs SDBs Total
ETP 118.81 687.89 162.8 387.02 1356.52

Projects having ETP 2994.15 173187.17 76517.03 6401.70 259100.05
Bio-gas Plant 9.73 283.82 0 606.32 899.87
Solar/Renewable Energy 984.94 1685.56 718.48 249.39 3638.37
Plant
Bio-fertilizer Plant 0.00 0.40 0 0 0.40
Hybrid Hoffman Kiln 538.71 841.96 0 449.66 1830.33
(HHK)
Others 1860.91 2089.58 0 110.97 4061.76
Reduced Rate of Interest 0.00 34.26 0 0 34.26

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3.14 ONLINE, INTERNET & SMS BANKING:
Access to online banking service for the customers is expanding day by day along-with the
increase in number of branches with online coverage and accounts facilitated with internet
and SMS banking.
Type of Total number of Number of branches with % of branches with

Banks Branches online banking facility online banking
facility
SCBs 3482 177 5.08
PCBs 3378 3116 92.24
FCBs 75 75 100.00
SDBs 1457 77 5.28
Total 8392 3445 41.05
3.15 MOBILE BANKING:
With fast expanding mobile telephony and great enthusiasm of the banks in offering financial
services through mobile phones, BB issued guidelines on mobile financial services in 2011.
25 banks have been given license thus fur to provide mobile financial services (MFS) of
which 18 banks have already started their operations. These banks are presently providing
MFS to around Taka 613 Lac registered clients; average daily transaction is around Taka 1,058
crore.
Green Banking Practice of Agrani Bank | 42

Mobile Financial Services (MFS) comparative summary statement of
April, 2018 and May, 2018
Serial Description Amount in Amount in % Change
no. April, 2018 May, 2018 (April, 2018
to May, 2018)
1 No. of Banks currently 18 18

providing the Services
2 No. of agents 811,073 820,353 1.1%
3 No. of registered clients in 606.26 613.23 1.1%
Lac
4 No. of active accounts in 197.33 229.09 16.1%
Lac
5 No. of total transaction 178,424,451 185,478,845 4%
6 Total transaction in 31,198.49 32,822.83 5.2%
taka(in crore BDT)
7 No. of daily average 5,947,482 5,983,189 0.6%
transaction
8 Average daily transaction 1,039.95 1,058.80 1.8%
(in crore BDT)
3.15 ATM SERVICES BY BANKS:
There are 53 Banks operating card business in the country. Among 53 banks 51 banks are
interoperable for ATM transactions. That is, a cardholder of any bank from these 51 NPSB
member banks can use ATM of all other banks throughout the country. Cardholders are getting
banking services like cash withdrawal, mini statement and balance inquiry for 24/7 from almost
all ATMs in the country. As a result, Long queues at cash counter of banks are decreasing.
Moreover, banks yet to install ATM and POS can issue cards to their clients. Now 9650 ATM
booths are operating in Bangladesh.

3.16 COMMON GREEN BANKING SLOGANS OF BANKS:
 Save paper, save trees
 Conserve energy, conserve natural resources
 Pay your bills online
 Turn off the tap when not needed
 Always use a cloth bag
 Reduce, reuse and recycle
 Digitize yourself
 Think before you press the button
 Everything has two sides
 Be paperless- kick the habit
 Use car pools to go to work
 Unplug electronic devices while not in use

3.17 TOP TEN BANKS IN GREEN BANKING ACTIVITIES:
Top 10 banks are evaluated on the basis of their overall Green Banking activities:
Figure: Top Ten Banks in Green Banking Activities

3.18 GREEN BANKING ACTIVITIES OF BANKS
As reported by banks, they are already practicing:
E-statement for customers instead of paper statements;
Maximum use of day light for office work;
Use of energy efficient bulbs and other electronic

equipments;
Conversion of Bank’s vehicles (pool) into CNG.
Online activities:
Intensive use of online banking and internal communication system to provide better &
greater banking services to clients.
3.18.1 TRUST BANK
Experimentally installed Bio-gas plant to generate rural energy with 13 farm families
in Manikganj.
Declared Sreepur as “Bio-gas Palli” under rural SME product Trust-Shufola.
Spot disbursement of TK. 21.0 million to 65 farm families/rural clients for Bio-gas &
Fishery projects.
3.18.2 MTBL
MTB Centre – based on green energy conscious design.

Solar Panel on rooftop.
MTB Green Energy’ to finance renewable energy projects.
‘MTB Krishi’, a loan product to finance core sectors of agriculture.
Solar system powered branches: Ishwardi Branch, Belkuchi Branch.
Barguna Model’ -a solar driven irrigation system; 7 other solar irrigation projects.
Commercial bio-gas plants for power generation.
Hi-Tech project of 35KW Solar Power Plant in Gazipur.

3.18.3 RAKUB
Solar Panel on rooftop.

Special attention to:
ensuring maximum recycling/processing of waste
environment friendly projects
brick field
CNG re-fueling projects
energy savings bulb projects
organic fertilizer
jute project instead of poly
Tree plantation.
Preference to environmental infrastructure projects like renewable energy, clean water

supply, waste water treatment, bio-gas and bio-fertilizer.
3.18.4 BANK AL-FALAH
Installed first ever solar powered ATM booth in 2011.
3.19 VISION FOR GREEN BANKING IN BANGLADESH
According to BB’s Green Banking statement “We envision Bangladesh as a mature advanced
economy in 2050, with levels of human
development and technological advancement
sufficient to place her among leading Asian
nations in terms of financial prosperity as well
as social and environmental responsibility.”

CHAPTER FOUR
GREEN BANKING ACTICITIES OF AGRANI BANK

LIMITED

4.1 VISION FOR GREEN BANKING OF AGRANI BANK LIMITED
Agrani Bank Limited vision is to become a preferred provider for business and personal banking
products and services the employer of choice in the markets we serve, the investment
preference for investors, and champion for a cleaner, healthier green environment.
4.2 MISSION OF GREEN BANKING OF AGRANI BANK LIMITED
Green Bank is equally committed to all of Agrani Bank Limited stakeholders - customers,
employees, communities and shareholders. We believe each of Agrani Bank Limited
constituencies is best served when all are served. Therefore, Agrani Bank Limited mission is to:
Help Agrani Bank Limited clients achieve economic success and financial security.
Create a place where Agrani Bank Limited employees can learn, grow, prosper and be
fulfilled in their work.
Make the communities where we operate better places to live and work.
Optimize the long-term return to Agrani Bank Limited shareholders, while providing
a safe and sound investment in a socially responsible and resource-efficient enterprise.
4.3 ENVITONMENT RELATED INITIATIVES OF AGRANI BANK
LIMITED
Agrani Bank Limited is committed to financing sustainable business that brings benefit to our
stakeholders, society, environment and economy as a whole. Our existing Environmental
Policy provides a framework for managing our environmental impacts, including climate
change by establishing a set of commitments to deliver.
Highlights of ‘Sustainable Finance Activities’ of the Agrani Bank

Limited:

In 2016 Bangladesh Bank instructed to form a “Sustainable Finance Unit” by abolishing
existing Green Banking Unit. The new Unit consists of six (06) members under the
supervision of Head of Credit Risk Management (CRM) Division. The Unit was active
throughout 2017.
As per the directives of Bangladesh Bank Agrani Bank Limited adopted a policy namely
“Guidelines on Environmental & Social Risk Management (ESRM) for Banks and
Financial Institutions in Bangladesh” on Social, Climate Change and Environmental Risk
Management (SCERM) in 2017.
A separate policy guidelines for ‘Green Banking’ was adopted in 2011.
Green Finance activities of the Bank:
Agrani Bank Limited arranged several training programs and workshops on green
banking and environmental risk management.
Environmental Risk has been incorporated in credit proposals and plays important role in
decision making.
The Bank has introduced Green Awards to encourage individuals and organizations who
are actively working to protect the environment and tackle the risks of climate change
through green business, environment-friendly operations, community investment and
knowledge management.
Enhancing online coverage for clients; for example: ATM, SMS Banking, Internet
Banking, mobile Banking etc.
Salient features of this Green Office Guide are as follows:
Agrani Bank Limited’s Green Banking is an initiative that moves beyond our processes
and our customers to cost efficient automated channels for building awareness and
consciousness for environmental issues. The Bank will introduce a monthly newsletter to

distribute among the employees of the Bank to create green awareness which will provide
attention to the following aspects:
Save Paper Save Trees (Every ton of paper involves 17trees).
 Maximum communication through e-mail
 Purchase recycled paper.
 Print on reusable sheets.
 Print multiple pages on single sheets of paper.
 Set defaults to print double-sided and print on both sides.
 Print only the pages required.
 Preview documents before printing.
 Increase margin width of the documents.
 Introduction of Biometric Attendance system.
 Change the default font size from 12 point to 10 which would shrink your document
by about 10%.
 Use e-mail statements.
 Using post-consumer waste recycled paper internally (copy and printer paper) and
externally (brochures, etc.)
 Shredding and recycling all paper internally
 Sharing electronic files, voice mail and e-mail instead of paper memos
 Both side printing (two-sided) when possible as well as limiting printed materials.
Plant or help plant more trees and preventing the cutting of the existing ones,
contribute towards the making of a healthy planet at no extra cost.
 Pay your bills online. For every 38,000 bills paid online, 5,058 pounds of greenhouse
gases are avoided and two tons of trees are preserved.
 Use Car pools to go to work. Avoiding 10 miles of driving every week would
eliminate about 500 pounds of carbon dioxide emissions a year.
 Drive responsibly. Every gallon of gas burned emits 20 pounds of carbon dioxide.
 Use LED lights. Compact Fluorescents Lights produce the same amount of light as
normal bulbs, but use about a quarter of the electricity and last ten times longer.
 Unplug electronics. Cell phone chargers, TVs, DVD players, stereos, microwaves and
other electronics with transformers continue to draw power, even when they’re off or
not charging anything, as long as they’re plugged in.
 Turn off the tap while brushing teeth and of course after use.

 Always use a cloth bag. Do not use paper or plastic bags for your grocery.
Global Climate Partnership Fund:
Agrani Bank Limited takes pride for its partnership with a prominent Energy Fund named
Global Climate Partnership Fund (GCPF) managed by Respoos Ability AG of Switzerland. In
2017, we could drawdown 3rd tranche of USD 10.00 million after successfully utilizing USD
10.00 million in the year 2015 and 2016.
Agrani Bank Limited under a technical assistance of GCPF engaged Frankfurt School of
Management and Finance (a renowned European Educational Institution) for capacity building
in Energy Efficiency and Renewable energy financing.
Under Another technical assistance of the fund, world famous “Enclude” Advisory Group of
Netherlands is helping the Bank develop a Social and Environmental Management Guideline
that will be rolled out in 2018.
Green Climate Fund
Agrani Bank Limited is the only bank that got approval of National Designated Authority
(NDA) of this UNFCCR fund. Bank will approach the fund for $100.00 million for renewable
Energy and Energy efficiency projects in 2018.
4.4 GREEN BANKING INITIATIVES OF AGRANI BANK LIMITED
Agrani Bank Limited recognizes that balancing non-financial factors such as environmental
and social issues with financial priorities is an essential part of good corporate citizenship, in
addition to being fundamental to risk management and protecting investors.
We recognize that the policies and practices we adopt today will shape not only our lives but
also those of future generations. We therefore have an opportunity to make a positive
contribution to environmental and social concerns by enacting policies so that our business
operations do not degrade the environment or cause social harm. Such policies not only indicate

positive environmental responsibility, but also present business opportunities such as
innovative financial products and investments in sustainable forestry and renewable energy.
This will help us better manage our risks, develop expertise and provide clients with solutions
to evolving exposures.
To demonstrate our commitment, Agrani Bank Limited has adopted a comprehensive

environmental and social policy. The policy implemented with Social & Environmental
Management System that includes planning, training, implementation, measurement, reporting
and review and applies to new business and existing business that comes up for renewal or
enhancements. Specifically, we integrate environmental and social awareness into the credit
analysis and financing decision process and incorporate it, where appropriate, as part of our
due diligence review. We train relevant employees to take responsibility for and
implementation of these policies.
In this connection, various steps have been taken to minimize the bank’s direct operational
impact to the environment to reduce paper usage and help save trees and to reduce energy &
water consumption. In 2016, Agrani Bank Limited developed a new Social and Environmental
Risk management system in line with Bangladesh Bank’s draft guide line, IFC’s Performance
Standard (PS) and Global Climate Partnership Fund Guidelines.
The Bank prioritizes and actively seeks projects with direct or indirect environmental benefits
which will contribute in reducing pollution in the country.
Environmental Due Diligence Checklist is meticulously followed whicle financing new

customers and extending credit facilities to existing customers. Environmental Risk Rating
(EnvRR) is now mandatory for all individual customers (corporate, institutional, personal,
small and medium enterprise) whose aggregate facilities are above the following financing
thresholds:
 For Small and Medium Enterprise-financing >BDT 2.5 million

 For Corporate-Financing> BDT 10 million
 For Real Estate-Financing> BDT 10 million
Comparative position of Environmental Risk Rating conducted by the

Agrani Bank Limited is as follows:

4.5 IMPLEMENTATION OF GREEN BANKING POLICY BY AGRANI
BANK- PANTI BRANCH
4.5.1 PANTI BRANCH AT A GLANCE
Agrani Bank Limited established its Branch in panti on 1977. The Branch is banking with
various types of account holders of deposit accounts as well as investment accounts. Huge
number of foreign deposit accounts is also here. Monthly Savings Scheme (MSS) Accounts are
also increasing day by day. There are some valued investment clients who want to get
specialized service. On the other hand, the other Banks situated in this area like Social Islami
Bank, One Bank, Dutch-Bangla Bank, Sonali Bank etc. are offering various products,
specialized service with advanced technology to attract the clients. In such situation, it is the
time-need for our Branch to provide sufficient manpower, to update digital programs & other
logistics support in order to deliver prompt & up to date banking service, to reduce untold
pressure of voluminous works, to achieve the targeted goal & to survive in the 21 st century.
4.5.2 QUALITATIVE INTERVIEW AND ANSWER:
I took a survey from Employees in Agrani Bank Limited- Panti branch, the summery of that
survey given bellow.
4.5.3 QUALITATIVE INTERVIEW AND ANSWER:
I took a survey from Employees in Agrani Bank Limited- Panti branch, the summery of that
survey given bellow.
1st question was Do Agrani Bank Panti branch invest on “Solar power” or “Eligible
for renewal power” or any “alternative power source” to save environment?
All employee give same answer that they do not have these type investment yet
but Agrani Bank Limkited has.
2nd Question was “Does Panti branch has any investment rate waiver for environment
saving Project?”

Different employees give different answer. This may cause they not practicing
that much Green Banking function. And another reason that one of employee
of investment department told “they do not get any application that can fully
satisfy “environment saving project”. If they get any of this type application for
investment, they would consider investment rate waiver as per rules of head
branch.
3rd question was “Do you have any tree plantation programmer?”
This time all employee give similar answer that they have this type
programmers.
4th question was “Do you provide any training to your partners or buyers for
environment saving activities?”
Maximum employee told they do not directly provide any training to them but
they provide guideline and make sure that applicant got certificates from
“Department of Environment” of Bangladesh.
5th Question was “Does this branch has any policy about Green banking?”
All the employee ensure that the Panti branch have Green Banking Policy.
6th Question was “What steps are taken for saving papers as well as tress?”
Collective answer is “we are trying to preserve our documents in CD other than
hard copy. Printing in both side of a single page and printing ink quality always
economy mode or less color.”
7th Question was “Give me some information about Agrani Bank green banking
activities.” Collective answer is :-
i) Before investing any investment to any industry, we investigate whether these
remain any treatment plant or not
ii) Branch wise we always preserve our documents through CD.

iii) We now introduced Remittance card to people
iv) We are now encouraging people to use ATM cards and ATM service.
v) We are conducting different seminars for make people aware for using ATM cards,
Mobile banking service, Internet services, online banking as well as Green Banking.
vi) We gave tree to our account holder as our tree plantation programme.
vii) We are working with farmers for helping them.
viii) Our entire task is accomplished through network and fast.
ix) A team investigates where the invertors doing well or not according to investment
contract in regular basis.
x) Investing on renewable energy and advising and working with entrepreneur to
ensure green banking.
xi) Maintain all rules and regulation that Bangladesh Bank declared for Green Banking.
8th Question was “Would you please tell about some green baking activities of Panti
branch?”
 Answer is “employees of Panti Branch are advice to make aware all the clients
about reducing Gas consumption, pollution and other wastage of other resources.
This branch now trying to increase ATM, Mobile banking, internet banking
services and trying investment in environment friendly projects.
9th Question was “What is the future Planning for Panti branch about green banking?”
Answer for these question is “N/A” or “it is subject to head office or top class
officer” mainly this may not their sector. All the function will be done by using
internet or mobile from their own living place.
Final and 10h Question was “Some recommendation that Agrani Bank ltd. can do for
batter practice of “Green Banking.”
Answer is:
I. Bank should establish internal recycling system for recycling its wastage.
II. Ensure the proper utilization of internal resources.

CHAPTER FIVE
FINDINGS & RECOMMENDATIONS

5.1 FINDINGS
1. Panti Branch mainly invested in business sectors. So, the policy of green banking are not
properly maintained by Panti branch.
2. They have very low performance in online service, and internet services. Though the
location of the branch is covered with uneducated people and the business focused on coal,
sand, road etc, client are not habituated with these service, but bank can motivated business
people to habituate with these services.
3. Lack of available advertisement regarding green banking policy. People still don’t know
about the practices of green banking followed by Agrani Bank Limited.
4. Information regarding green banking polices are not available in Panti branch. They do not
have green banking specialist. As a result green banking practices are not done properly.
5. Before investing in any project they only consider on the certificate provided by
“Department of Environment of Bangladesh” and do the applicant have adequate mortgage
property or not.
6. Maximum numbers of Employees of this branch are not aware about Green Banking.
5.2 RECOMENDATIONS:
5.2.1 THE WAY OF TO GO AHEAD
Need to apply Green Banking and use ERM (Enterprise Risk Management) guideline
in an efficient manner.
Bank should increase ATM service, online service and internet services.
Apply quantitative approach for Environmental Risk Rating.
Bank should provide available advertising and arrange more seminar about green
banking and motivate clients by different way to follow the policy.
Bank should recruit green banking specialist, who give available information about
green banking to clients.
Panti branch should properly maintain green banking policy to invested in transport
sectors.
5.2.2 WHAT CAN DO AGRANI BANK LIMITED SPECIALLY PANTI BRANCH
As a bank of Bangladesh, Agrani bank have many depositors, investors and other relation with
people. Agrani bank can increase awareness of people to make seminar. They can make bound
and help to their investors or partners.
As Panti branch has RDS sector to help rural people, and obviously this is a very nice project
and will be effective if bank can run this properly. Branch can ensure green banking by this
project. Branch can make a market where can farmers sell their goods at profitable price and
final buyers can have it at reasonable price.
Panti branch can involve agribusiness; so that it will help rural people as well as the branch can
maintain green banking policy effectively.
Teen age or young people are the future of our country. They are the mostly user of technology.
Agrani Bank Limited should have plan for them. Agrani Bank Limited should have to offer
special account for them. All technological and updated facilities will have there and have to
create awareness among them.

CONCLUSION
Benefits of online banking include less paperwork, less mail and less driving to branch offices,
which all have a positive impact on the environment. Interestingly, online banking can also
increase the efficiency and profitability of a bank. A bank can lower their own costs that result
from paper overload and bulk mailing fees as more customers use online banking.
Banks can do much more to help the environment than just promote online banking. A truly
green bank will reduce their carbon footprint by building more efficient branches,
implementing energy-efficient operational procedures, offering transportation services for their
employees, promoting sustainable banking and increasing their lending in environment-
sensitive industries. Banks can also support eco-friendly groups and raise money for local
environment initiatives.
The number of green banks should be increased because the future prospect of green banking
is very bright in our country for the following reasons:
The banks are encouraged to be green by Bangladesh bank,
Recently the government made the companies mandatory to use solar plants to save
electricity.
Government has taken initiatives to digitize the banking transactions introducing online
Banking” which encourage the paperless banking.
Agrani Bank Limited needs to be made fully aware their clients of the environmental and social
guidelines to which banks worldwide are agreeing to as far as green banking is concerned,
Agrani Bank Limitedis far behind their counterparts from developed countries. If Agrani Bank
Limited desire to enter global markets, it is important that they recognize their environmental
and social responsibilities.
In addition to mitigating risks, green banking opens up new markets and avenues for product
differentiation. The survival of the banking industry is inversely proportional to the level of

global warming. Therefore, for sustainable banking, Bangladesh banks should adopt green
banking as a business model without any further delay.
REFERENCES
1. www. agranibank.org
2. Annual Report of Agrani Bank Limited - 2016, 2017, 2018.
3. Service and price guide of Agrani Bank Limited.
4. Prospectus of Agrani Bank Limited.
5. http://www.thefinancialexpress.com.bd
6. Steiner and Shapiro, “Modern Banking”
7. H.L. Bedi & V.K. Hardikar, “Practical Banking Advances”.
8. Shekhar & Shekhar, “Banking Theory and Practice.” (18th Revised Edition)
9. R.S. Sayers, “Modern Banking”

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Table of Contents

Green Banking Practice of Agrani Bank Limited

Green Banking Practice of Agrani Bank Limited

1.2.1 SPECIFIC OBJECTIVES:

The specific objectives of this report are

I. To draw a clear picture of Green Banking.

II. To identify the major areas and product of Green Banking.

V. To give recommendation on the basis of Finding.

1.2.2 GENERAL OBJECTIVES:

1.3 SCOPE OF THE STUDY

Green Banking Practice of Agrani Bank Limited

1.4 LITERATURE REVIEW

Green Banking Practice of Agrani Bank Limited

Methodology is the study or theoretical analysis of particular working methods. Adoption of

1.6 METHODS OF DATA COLLECTION

1.6.2 THEORETICAL FRAMEWORK

Green Banking Practice of Agrani Bank Limited

1.6.4 PRIMARY SOURCES

The “primary sources” are as follows-

1.6.5 SECONDARY SOURCES

The “Secondary Sources” of data and information are:

I. Annual Report (Last five years) of Agrani Bank Limited.

II. Periodicals published by Bangladesh Bank.

IV. Relevant file study as provided by the officers concerned.

1.6.6 METHOD OF DATA COLLECTION:

II. Informal conversation with the investment clients.

Green Banking Practice of Agrani Bank Limited

1.6.8 PREPARATION OF THE REPORT:

Following steps are associated with the preparation of this thesis:

I. Representations of the assembled data through graph

II. Preparation of the draft report

III. Preparation of the final report

Green Banking Practice of Agrani Bank Limited

Following is the flow chart of the study:

Developing Theoretical Framework

Fixing Goals and Objectives

Primary Data Secondary Data

Branch Investigation Related Organization

Data Processing, Interpretation and Analysis

Green Banking Practice of Agrani Bank Limited

Green Banking Practice of Agrani Bank Limited

Green Banking Practice of Agrani Bank Limited

Name of the company Agrani Bank Limited

Table 2.1: Company Profile of Agrani Bank Limited

2.2 BACKGROUND OF THE ORGANIZATION

Green Banking Practice of Agrani Bank Limited

Green Banking Practice of Agrani Bank Limited

Agrani Bank At a Glance

Green Banking Practice of Agrani Bank Limited

 The Board of Directors is composed of 10 (Ten) members headed by a Chairman. The

2.3 AGRANI BANK LIMITED VISION

Green Banking Practice of Agrani Bank Limited

2.5 AGRANI BANK LIMITED STRATEGIES

To strive for customers best satisfaction & earn their confidence.

2.6 BANKS'S CORE STRENGTH

 Professionally strong Board of Directors

2.7 BANK'S CORE VALUES

Green Banking Practice of Agrani Bank Limited

Green Banking Practice of Agrani Bank Limited

b) Foreign Currency Account

2. LOANS & ADVANCES

Green Banking Practice of Agrani Bank Limited

c) Rural & Agro Credit