Chapter 3

Organizational Overview
 Chapter 3

Organizational Overview

3.1 Introduction

Globally, the variety of banking systems is evolving more quickly due to globalization,

technological advancement, and deregulation. Banks currently face market competition from

domestic and foreign institutions. The first is the growth of "professional efficiency" in creating a

suitable labor structure that includes knowledge and experience; the second, even more crucial,

is the establishment of applicable financial regulations by the Central Bank. It takes more than

simply introducing a trained banker with a theoretical understanding of banking efficiency. It is

of great value when an academically capable student can explain how a particular course of

study can be used in practice. We must therefore understand how to utilize what we are learning

efficiently to benefit from the conceptual study.

3.2 Background

Agrani Bank Limited was established as a state-owned commercial Bank on May 17,

2007, under the Companies Act 1994. On July 1, 2007, business, assets, liabilities, rights, and

obligations were transferred from Agrani Bank to Agrani Bank Limited. ABL is Bangladesh's

first state-owned commercial Bank to offer Agent Banking. It has 400 agent booths in rural areas,

providing Agent Banking services. Since February 28, 2010, ABL has operated an Islamic

Banking system through 15 Islamic Banking Windows under the 'Islamic Banking Unit.' Agrani

Bank Limited is committed to serving the nation. The twelve-member Board of Directors that

oversees Agrani Bank Limited is presided over by a chairman. The Managing Director serves as

the Bank's chief executive officer and is assisted by the Deputy Managing Directors and General
Managers. The Bank has 971 branches, including 36 corporate and 43 AD (authorized dealer)

branches, 11 Circle offices, 37 Divisions in the head office, 53 zonal offices, and other locations.

The Bank's authorized capital is Tk. 500.00 Crore.

3.3 Vision, Mission and Strategic Objectives

3.3.1 Vision

To emerge as Bangladesh's most successful and well-known state-owned commercial

Bank, operating at a high-quality standard, sound management, efficient operations, and

excellent customer service.

3.3.2 Mission

Assimilate ideas and lessons from best practices to improve the privilege of business

policies and procedures to benefit customers and the workforce while operating ethically and

fairly within the strict parameters set by the governing bodies.

3.3.3 Values

Value integrity, transparency, accountability, dignity, diversity, growth, and

professionalism to deliver high-quality service to clients and stakeholders inside and outside the

nation.

3.3.4 Motto

To adopt and modify modern tactics to sustain international leadership in the banking

sector of Bangladesh.
 3.3.5 Strategic Objectives

ABL has established some fundamental corporate goals that they are pursuing to be the

best in the banking sector. The targets are outlined below:

 Obtaining competitive advantages by reducing overall costs in comparison to rivals.

 Outperforming rivals by offering top-notch customer support.

 Ascending to peer group leadership in technology.

 Increasing brand awareness for the Bank.

 Improving the research capacity for novel goods and services.

3.4 Commitments

 To Government

 To the Regulators

 To the Shareholders

 To the Customers

 To the Employees

 To other stakeholders

3.5 Ethical Standards

 Trustworthy

 Keeping an Open Mind

 Meeting Obligations

 Being Transparent

 Being involved with the Community

 Being Respectful
3.6 Principal Activities of Agrani Bank Ltd.

 Acquiescent of federal laws and constraints.

 Deny corruption and bribes.

 Evade gift and amusement settlements.

 Fast and moderately settle customer criticisms.

 Respectful with anti-money laundering prerequisites and other prudential constraints

inflicted by banks.

3.7 Corporate Slogan

The corporate slogan of ABL is- ‘Committed to serve the nation.’

3.8 Customer Mix

The distinguishing features of ABL include being a state-owned institution, having a

comprehensive vision and unwavering loyalty to rural residents, having high customer

obligations, having knowledgeable employees, and many more. ABL's drawbacks include a need

for a suitable governance-generating attitude, a lack of IT management, a manual-based

operation, a lack of employee motivation, and an emphasis on the corporate headquarters.

Additionally, ABL has several concerns, including the interference of CBA Officers' Somite,

certain commercial & remote banks, Bangladesh Bank principles and rules, the existence of

related types of retail saving money items, and many more.

3.9 Product/Service Mix

ABL has quickly advanced thanks to its bold and spectacular management approach and

the provision of loan and deposit services that are friendly to customers. Additionally, they have

maintained their standing as government banks that offer various services and products of the
highest caliber. ABL divided its product lines into different categories to make maintenance

simpler. All of the Bank's offerings can be categorized into the following categories:

 General banking

 Business

 SME (Small and Medium Enterprise)

 Merchant Banking

 Islamic Banking

 Treasury

 Investor relation

 Technical & other online services

 Credit services

3.10 Product & Services in particular

 Deposit Product

 Savings Bank Account

 Current Deposit Account

 Special Notice Deposit Account

 Fixed Deposit Account

 ABS Account

 Agrani Super Savings Scheme

 Agrani Bank Pension Scheme (APS)

 Loan Product

 Personal Loan

 Any Purpose Loan

  Freedom Fighter Loan

 Loan against pension vata of retired Govt. officer/staff

 Agrani Bank loan for Overseas Worker- ALOW

 Green Banking Finance

 Short-Term SME Loan.

3.11 Agrani Bank at a Glance

Table 3.1: Agrani Bank at a Glance

Organization Overview (as of 31st December 2021)

(Financial Information)

Authorized Capital Tk. 2,500.00 Crore

Paid-up Capital Tk. 2,072.29 Crore

Equity(2021) Tk. 4057.07 Crore

Reserve Fund Tk. 2,124 Crore

Deposits Tk. 100,864.39 Crore

Investment (including investment in Tk. 39,033.06 Crore

shares)

Classified Loans Tk. 9,987 Crore

Loans & Advances Tk. 55,990 Crore

Foreign Exchange Business

Import Tk. 39,920 Crore

Export Tk. 14,761 Crore

Remittance Tk. 17,961 Crore

 Organizational Information

Chairman, Board of Directors Dr. Zaid Bakht

Managing Director and CEO Md. Murshedul Kabir

Company Secretary Khandaker Sajedul Haque

Workforce 10750

No. of Branches 971

Face Value per Share Tk. 100

Shareholding Pattern 100% share owned by the

Government of the Peoples’

Republic of Bangladesh

Circle Office 11

Zonal Office 53

Corporate Branch 34

Authorized Dealer (AD) Branch 42

Foreign Correspondent 348

Islami Banking Window 15

Agent Banking 400

Remittance Only points 412

Distribution of Shares (Directors) 7

Distribution of Shares (General Public) 0

No. of ATM Booth 26

Head Office 9/D Dilkusha Commercial Area, Motijheel,

Dhaka - 1000, Bangladesh. PBX Range:

 (880-2) 9566153-54.

Products Deposit, Business Loan, SME, Islami Banking.

Services Agent Banking, ATM, Jiban Bima,

University Fee Collection.

Total Assets Tk. 1,09,310 Crore

Operating Profit Tk. 743 Crore

Net Profit Tk. 63 Crore

Legal Status Public Limited Company

Date of Incorporation 17 May 2007

Commencement Date 17 May 2007

Business 000000221

Identification

Number (BIN)

Tax Identification 395478266223

Number (TIN)

VAT 19011031730

Registration

Number

Auditors QASEM & CO.

Chartered Accountants MASIH MUHITH HAQUE & CO.

Credit Rating (Govt. Support) AAA

Credit Rating (Stand Alone) A+

SWIFT AGBKBDDH
 SWIFT Branches 37

Contact Information

FAX (+8802) 956 2346, 956 3662

PBX Range (880-2) 9566153-54,

9566160-69,9566074-75

Email [email protected]

Web www.agranibank.org

LinkedIn https://www.linkedin.com/company/agranibank-

limited/mycompany/

3.12 Agrani Bank Limited Ramgonj Branch at a Glance

Table 3.2: Agrani Bank Limited, Ramgonj Branch at a Glance

Bank Details Agrani Bank Limited

Branch Name Ramgonj Branch

Dealer Type Authorized Dealer

Address Sonapur Moulobi Bazar, Ramganj,

Laxmipur
Branch Code 5566

Routing 010511039

Senior Principal Officer Md Abu Sayed

SWIFT Code AGBKBDDH

Established 17 May 2008

Bank Origin Local Bank

No. of Departments 6

Human Resources of Bank 48

Phone 01713253556

Email [email protected]

Web www.agranibank.org

3.13 Hierarchy of Agrani Bank Limited

 A 12-member board of directors, headed by a chairman, oversees the operations of

Agrani Bank Limited.

Figure 3.1: Hierarchy of Agrani Bank

3.14 Branches of Agrani Bank Limited

 The entire nation is home to 971 branches. Some countries have overseas divisions,

including Singapore, Malaysia, Canada, and Australia. Let us examine the multiple branches in

Bangladesh now:

Figure 3.2: Branches of Agrani Bank Limited

3.15 Corporate Governance of ABL

 A fundamental value of the Bank is upholding the principles of good governance.

Business-wise, this makes sense, and it complies with all rules, regulations, and guidelines set

forth from time to time by regulators (Government, Bangladesh Bank, Securities and Exchange

Commission, and Firms) and others (capital adequacy, statutory reserves, liquidity, pricing,

budgeting, Etc.) ABL also strictly adheres to the Bank Company Act of 1991 and the Companies

Act of 1994, as well as the voluntary recommendations of the World Bank and International

Finance Corporation. It also emphasizes the social and environmental consequences of the

initiatives it finances. The committee demarcates the approach and endorses the management's

annual operational programs to execute the strategic pursuits. The board meets frequently and is

updated on all general activities for the efficient procedure of the Bank. In order to encourage

greater accountability and transparency in all of its policies and practices, ABL continues to

operate within the legal framework.

3.16 Corporate Social Responsibility of Agrani Bank Limited

According to Agrani Bank Limited, a business entity cannot exist solely to make money

because neither society nor business alone can truly advance society in the truest sense. The

objectives and approaches of businesses and the social sector must coincide and harmonize.

Since its inception, Agrani Bank Limited has participated in various social endeavors, and this

involvement has only grown. To fulfill the Sustainable Development Goals (SDGs), Bangladesh

Bank has officially encouraged mainstreaming CSR in the country's banks and financial

institutions.
 Figure 3.3: Corporate Social Responsibility of ABL

ABL believes that a better business climate depends on a better society. A commitment to social

responsibility can pay off financially because the concepts encourage investors to invest and

consumers to use the company's products and services. When it comes to providing CSR

facilities (financial assistance), ABL always prioritizes specific communities or groups, such as

those who are physically disabled, underprivileged and behind, affected by natural disasters,

deserving but poor, and specific fields (poverty reduction, human resources development,

expansion of education, health & treatment, the establishment of "Day Care Center").

To help the weak and disadvantaged, the Bangladeshi government runs several public social

safety net programs. As a state-owned bank, Agrani Bank Limited ensures that Bangladesh's

extensive social protection system develops smoothly.

3.17 SWOT Analysis of Agrani Bank Limited

An organization's exposure and potential are carefully evaluated through its strengths,

weaknesses, opportunities, and threats (SWOT analysis). According to Kotler and Armstrong

(2008), SWOT analysis is an overall evaluation of the strengths, weaknesses, opportunities and

threats that the company has. Additionally, it can be seen as a crucial tool for adjusting the

organization's strategic management.

3.17.1 Strength:

i. Strong Financial Position

ii. Satisfactory banker-customer affinity

iii. Energetic as well as elegant teamwork

iv. Tremendous business dimensions

v. Collaboration with each other

vi. Emphatic corporate identicalness

vii. A youthful, vibrant workforce

viii. Empowered Workforce

3.17.2 Weakness:

i. Deficiency of appropriate stimulation, training and job rotation

ii. Scarcity of proficient employees in junior-level management

iii. Lack of own ATM assistance

iv. Lack of professional workforce in some division

v. Inflexible advertising and hype of the Bank’s products and movements

vi. Absence of substantial marketing moves

vii. The office surroundings are not suitable as the private bank circumstances

viii. High payments of L/C

3.17.3 Opportunity:

i. Professional Administrators

ii. Expansion of sales volume

iii. The proliferation of banking services into other additional services

iv. Alter the political surroundings

v. Venturing own ATM card favors

vi. Accumulation of associates of online

3.17.4 Threats:

i. Forthcoming banks or branches

ii. Other banks offer equivalent products

iii. Insolvency Loans

iv. Financial Crisis

v. The government has been regulating industrial credit

vi. The slump in the global economy

vii. Intensification of rivals in the endeavor

viii. Rules and ordinances may modify over time by Bangladesh Bank.