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Internship Report On ; A study on overall Activities & performance of AB Bank Limited ABBank Under The Supervision Of : DR.

M A Hakim Internship Supervisor & lecturer in Finance Bangladesh University of Business & Technology(BUBT) Dhaka Campus . Prepared By Md.Ibrahim Khalil Ullah IDNo-021 Batch No- 11th Major- Finance & Banking Department - M.B.A . Bangladesh University of Business & Technology(BUBT) Date of Submission

Bangladesh University of Business & Technology(BUBT)

Acceptance LetterIt is my pleasure to accept the internship report entitled "A Study on overall Activities & Performance of ABBL " prepared by Name - Md.Ibrahim Khalil Ullah , IDNo-021 Batch No- 11th Major in Finance & Banking, Department of Business Administration, Bangladesh University of Business & Technology (BUBT) Dhaka Campus. I do hereby certify that this report is solely prepared by her by using the relevant documents related to the assigned topic. Md.Ibrahim Khalil Ullah IDNo-021 Batch No- 11th Major- Finance & Banking Department - M.B.A . Bangladesh University of Business & Technology(BUBT)

STUDENT DECLARARION I here by declared that the internship report entitled General Banking Activities of AB Bank Limited. Submitted in partial fulfillment of the requirement for the degree of Masters of Business Administration (MBA) from International Islamic University Chittagong Dhaka Campus.

Md.Ibrahim Khalil Ullah IDNo-021 Batch No- 11th Major- Finance & Banking Department - M.B.A . Bangladesh University of Business & Technology(BUBT)

CERTIFICATE This is certify that the Internship Report entitled General Banking Activities of AB Bank Limited. Submitted in partial fulfillment of the requirement for the degree of Masters of Business Administration (MBA) from Bangladesh University of Business & Technology(BUBT) BY Md.Ibrahim Khalil Ullah IDNo-021 Batch No- 11th Major- Finance & Banking Department - M.B.A . Bangladesh University of Business & Technology(BUBT)

Attested

Certified

..
Internship Chairman of the Committee

.
Supervisor

LETTER OF SUBMISSION
Date- 14, October 2009 To Lecturer Department of Business Administration (Finance) Stamford University Bangladesh Sub: Submission of Internship Report on Overall Performance Of Ab Bank Ltd. Dear Sir, It is my great pleasure to submit you my internship report on Overall Performance Of Ab Bank Ltd.. I have tried my best to complete this report properly following the guidelines provided by you and concerned organization. I have confidence that the internship program has increased both of my practical experience and theoretical knowledge to a great extent. I will be obliged to answer any query that may arise during the evaluation of this report. So, I am fervently requesting and hope that you would be kind enough to accept my report and oblige thereby.

Sincerely Yours, ______________________ Md.Ibrahim Khalil Ullah BBA (Major in Finance) 27th (P) Batch ID: 02708033 Stamford University Bangladesh.

ACKNOWLEDGEMENT First of all, I am expressing my sincere gratefulness to Almighty me to prepare this report .The success of this report depends on the contribution of number of people specially those who have shared their thoughtful guidance and suggestions to complete this report. I would like to give my heartiest gratitude Md.Ibrahim Khalil Ullahthe guided and coordinator of my internship report of MBA program under BUBT for giving me the best and valuable advice, suggestion and moral support to complete the report in an appropriate and manner. It is my pleasure to them and my grateful appreciation goes to ABBL authority for rendering me their expertise, knowledge, and giving me the opportunity of having a practical experience through this internship program. I would like to convey my sincerest gratitude to DR.M A Hakim Department of Finance for his kind cooperation to allow me for three (3) months practical banking in the bank .Then I like to thanks to Mr.Chowdury A.N.M Mosaraf AH Beg (SAVP) Manager of Mirpur Branch , A.S.M Khairul Alam (AVP) and Sub-manager of Mirpur Branch and all the staff of this branch for giving me the pleasure of doing internship. My heartfelt appreciation and thanks should reach to MD.Kamruzzaman (S.P.O),Mozammal Hossain Khan (S.P.O), MD.Zakir Hossain (P.O) ,Mosammat Saleha Khatun (S.O) ,Atika Zakia Islam (P.O) OF Head teller. Who operate and support me to collect various types of information and necessary documents and help me to complete this internship report. A silent steam of gratitude is for my most adorned parents whose blessings are always with me in this windly world.

ABBREVIATIONS: ABBL - AB Bank Limited BUBT - Bangladesh University of Business & Technology SAVP - Senior Assistant Vice Principal PO - Principal Officer SO - Senior Officer SPO - Senior Principal Officer CD - Current Deposits SB - Shaving Deposits FDR- Fixed Deposits Receipt TIN- Tax Identification Number L/C-Letter of Credit P/I- Pro- forma Invoice B/L-Bill of lading B/E - Bill of Exchange ERC- Export Registration Certificate CCI&E - Chief Controller of Import & Export (BIVAC) - Bureau Veritas Bangladesh LTD LCAF- Letter of Credit Authorization form IMP- Import SWOT- Strength, Weakness, Opportunity, Threats.

Table of Contents: Chapter One (Introduction of the Report)_________________Page No 1.0) Introduction 12 1.1) Background of the Report 12 1.2) Objective of the Report 13 1.3) Scope of the Report 13 1.4) Sources of Information 14 1.4.1) Primary Source 14 1.4.2) Secondary Source 14 1.5) Limitation of the Study 14 Chapter Two (Overview of the Organization)________________Page No 2.0) Overview of the Organization 16 2.1) Historical Background of AB Bank Limited 16-18 2.2) ABBL : At glance 18 2.3) Vision & Mission 19 2.3.1) Vision Statement 19 2.3.2) Mission Statement 19 2.4) Change of name 20 2.5) Birth of the Logo 20 2.6) Company Philosophy 20 2.7) Branch Location 21 -23 2.8) Organogram of ABBL 24 2.9) Financial Statement 25-26

Chapter Three (Branch Information) Page No 3.0) History of Mirpur Branch 3.1) Organizational Structure of Mirpur Branch 3.2) Department of the Branch 3.3) Present position of the Branch 17 18 19 19 Chapter Four (Function of ABBL) Page No 4.0) General Banking System 4.1) Accounts Opening System 4.1.1) Current Deposits (CD) 4.1.2) Savings Deposits (SB) 4.1.3) Fixed Deposits (FOR) 4.1.4) Monthly Savings Deposits (MSDS) 4.1.5) Double Deposits Scheme (DOS) 4.1.6) Special Team Deposits (STD) 4.2) Procedure of closing Account 4.3) Remittance Department 4.3.1) Local Remittance Department 4.3.2) Foreign Remittance Department 4.4)Regulation for Foreign 4.5) International Regulation of Foreign Exchange 4.6) Foreign Exchange Mechanism 4.7) Letter of Credit L/C 33 34 35 35 35 36 36 36 37 37 37 38 40 40-41

42 43

4.8) Import Department 4.9) Steps of Import Procedures 4.10) Clearing Department 4.11) Money Transfer 4.12) Types of Cheques Collection 4.13) The Clearing House 4.14) Types of Clearing 4.15) Process of Inward Clearing 4.16) Process of Outward Clearing 4.17) Cheque Returns 4.18) FCD Department 4.19) Loan Department 44 45-46 46 47 48-49 49-50 51 52 53-54 54-55 55-56 57-64 Chapter Five Page No 5.1) Internship Duties 5.2) Learning Points 5.3) SWOT Analysis 5.4) Recommendation 5.5) Conclusion 66-67 67-68 68-69 69 70 References 71

AB Bank Executive Summary Modern Banking is an outcome development driven by changing financial activities and lifestyle . It offers the widest range of financial services - specially credit, Savings, and payment services and performs the widest range of financial functions of any business firm in the economy . By definition , bank collects deposits from of credit and other financial services to the clients. At one hand the bank pays interest to the depositors and on the other hand it earns interest at a higher rate from the borrowers to realize profit. So we find that money works both as the input and output of the banking industry. The important feature of banking operation is to earn a good image of trustworthiness to deal with money of the depositors . AB Bank Ltd is of famous bank in the growing banking sector of Bangladesh . In AB Bank Ltd , as I have found out, the task of satisfying the depositor group and the borrower group is the first priority and the bank does this in a way smarter than any others in the industry. Beside these, AB Bank gets success in very short time. I have worked there three months as a requirement of the internship phase of BBA program under the department of business administration of IIUC. I have selected one topic : "GENERAL BANKING ACTIVITIES OF AB BANK LIMITED" This report is originated as a partial requirement of BBA program . The AB Bank Limited is one of the leading private commercial bank in the country. It incorporated in Bangladesh on 31st December 1981 & started its operation with effect from April 12,1982.

^ABBank As they are facing the challenges on way to further improving the profitability of the bank, they have to rely on their skilled & experienced workforce. The organizational structure is included in terms of organization culture & quality of work life. Then I have moved on towards the strategic, operational and legal issues of the ABBL to justify the report. I discussed about General Banking , its prospect & necessity. General banking operation like : General Accounts Opening Section , Requirement of opening current A/C, Saving A/C, Fixed Deposits A/C, Rate of interest on Deposits, Procedure closing A/C, Cheque clearing & bills department section, Collection section, Local Remittance department, Deposits section, Loans & credits department. Foreign trade department plays a major role in the international business. Here banks offer opening a letter of credit (L/C) Indifferent forms , provide the exporter the guarantee of payment of the merchandise exporter & the importer the title of goods. International business is unthinkable without the facility of the L/C. Bank also offers different loan facility in pre-shipment & postshipment level. 10

CHAPTER ONE Introduction of the report Segment Objective This Section will focus on : 1.0) Introduction. 1.1) Background of the report 1.2) Objective of the report 1.3) Scope of the report 1.4) Sources of information 1.5) Limitation of the study 11

^ABBank 1.0) INTRODUCTION : 1.1) Background of the report; A bank is a financial institution whose main objective is the mobilization of fund from surplus unit to deficit unit . In the process of acceptance & provision of loan, banks create money . This characteristics feature sets Bank apart from other financial institution. A Bank can influence the money supply through lending & investment . A Bank is also an economic institution whose objective is to earn profit through exchange of money & credit instruments. Commercial bank is one, which is concern with accepting deposits of money from the public, repaying on demand or otherwise & withdrawal on demand or otherwise & employing the deposits in the form of loan & investment to meet the financial needs of business & other classes of society. Bank is very old institution that is contributing toward the development of economy & an important service provider in the modern world. In the globalization & free market economy, banks provide their service worldwide & compete with other all over the world. The banking sector is one of the major sectors in Bangladesh economy & can be divided mainly in to four categories - Nationalized bank, Local private bank , Specialized financial institution & Foreign banks. In Bangladesh, the journey of private commercial banks is not older. The banking in Bangladesh has passed three decades through different policy environment & comprises central bank at the apex. 12

^ABBank The country's central bank, Bangladesh Bank, controls & monitors the banking industry. At percent, there are 4 nationalized, 5 are specialized, 30 are local private commercial banks & 10 are foreign commercial banks. AB Bank Ltd. is one of the prominent thirds generation banks in the banking sector. 1.2) Objective of the report: The primary objective of this report is to partial fulfillment of BBA degree & achievement of the knowledge about how bank mobilize their surplus fund to the deficient units of AB Bank Ltd. There are some other important objectives of this report are as follows: - Acquiring experience for future working life. - To describe the customer service process of AB Bank Ltd. - To analysis the bank position of deposits mobilization. - To get knowledge about the products & services offered by AB Bank Ltd. - To analysis how well manage a customer. 1.3) Scope of the report: The internship program is a partial requirement of the BBA program of the International Islamic University Chittagong, Dhaka campus. Which construct & build a bridge between the real life state of affairs & theoretical concepts, which were taught in the class room. It is a great opportunity for me to get the practical knowledge of the corporate world. That's why I had to join in the AB Bank Ltd. (Mirpur Branch) as an internee & my internship report is based on the practical experience that I gained from there. 13

^ABBank I A) Source of in formation : The required data & information to prepare the report have been collected from the following sources : 1.4.1) Primary Sources ; Personal interview with branch officials or executives. - Practical desk work. Getting information from face to face dealing with the client. - Interviewing the persons who are treated experts in respective to the assignment. Customer file study in the account opening & loan div 1.4.2) Secondary Sources : - Annual report of AB Bank Ltd-2008 - Web site of ABBL. - Bangladesh Bank report. - Published or unpublished or personally collected data from officers. - Files & documents of the branch. - Some articles on banking sectors. Different textbooks. 1.5) Limitation of the study : AB Bank Ltd. is a large financial institution, therefore it is not possible to find out the true picture within a short period. To prepare the report I faced some problems & limitations. Those limitations are unavoidable for me. That may causes reduction in the quality of my report. Some of the major limitations are pointed below. - Time constraint is one of the major limitations to know all the inside information of the bank. - Bank has no formal guidelines for internship. Employees are so busy with their work. That's why they do not have sufficient time to co-operate with me. 14 8?

I I Chapter Two Overview of the organization Segment Objective This Section Will Focus On : 2.1) Historical background of AB Bank Limited 2.2) Vision & Mission 2.3) Corporate structure 2.4) Corporate information of AB Bank Limited 2.5) Management Hierarchy of ABBL 2.6) Financial Statement 15

^ABBank 1.0) OVERVIEW OF THE ORGANIZATION : r2.1) Historical Background of AB Bank Limited AB Bank Limited ,the first private sector bank under joint venture with Dubai Bank Limited. UAE incorporated in Bangladesh on 31st December 1981 & started its operation with effect from April 12,1982. Dubai Bank Limited (name subsequently changed to Union Bank of the Middleast Limited) decided to off-load their investment in AB Bank Limited with a view to concentrate their activities in the UAE in early part of 1987 & in teams of Articles 23 A & 23B of the Articles of association of the company & with the necessary approval of the relevant authorities, the shares held by them in the Bank were sold & transferred to Group "A" Shareholders, i.e. Bangladesh Sponsor Shareholders. As of December 31,2006 ; the authorized capital & the equity (paid up capital & reserve) of the bank are BDT 2000 million & BDT 2582.76 million respectively. The sponsor-shareholder hold 50% of the share capital; the General Public Shareholders hold 49.43% & the rest 0.57% shares are held by the Government of the People's Republic of Bangladesh. However, on individual sponsor shareholder of more then 10% of its total shares. Since beginning, the bank acquired confidence & trust of the public & business houses by rendering high quality services in different areas of banking operations, professional competence & employment of state of art technology. During the last 27 years, AB Bank Limited has opened 73 Branches in different Business centers of the country, one foreign Branches in Mumbai, India, two Representative 16 SB?

^ABBank Officer in London & Yangon, Myanmar respectively & also established a wholly owned subsidiary finance. Company in Hong Kong in the name of AB Bank International Finance Limited. To facilitates cross border trade & payment related services, the Bank has correspondent relationship with over 220 international banks of repute across 58 countries of world. AB Bank Limited, the premier sector bank of the country is making headway with a mark of sustainable growth. The overall performance indicates mark of improvement with Deposit reaching BDT 42076.99 million ,which is precisely 53.78% higher then the preceding year. On the Advance side, the Bank has been able to achieve 46.32% increase, thereby raising a total portfolio to BDT 31289.25 million which places the bank in the top tier of private sector commercial banks of the country. On account of Foreign Trade ,the bank made a significant headway in respect of import, export & inflow of foreign exchange remittances from abroad. 17

^ABBank Officer in London & Yangon, Myanmar respectively & also established a wholly owned subsidiary finance. Company in Hong Kong in the name of AB Bank International Finance Limited. To facilitates cross border trade & payment related services, the Bank has correspondent relationship with over 220 international banks of repute across 58 countries of world. AB Bank Limited, the premier sector bank of the country is making headway with a mark of sustainable growth. The overall performance indicates mark of improvement with Deposit reaching BDT 42076.99 million ,which is precisely 53.78% higher then the preceding year. On the Advance side, the Bank has been able to achieve 46.32% increase, thereby raising a total portfolio to BDT 31289.25 million which places the bank in the top tier of private sector commercial banks of the country. On account of Foreign Trade ,the bank made a significant headway in respect of import, export & inflow of foreign exchange remittances from abroad. 17

^ABBank 2.2) AB Bank Limited: at a glance Name Legal form : AB Bank Limited : A public company incorporated in Bangladesh on 31st December, 1981 under the Companies Act, 1913 and listed in DSE and CSE. Date of commencement : 27th February 1982. Registration Number : C281461 (1992)/95 Present No of Branches : 74 No of ATM booth Registered office GPO Box : BCIC Bhaban 30-31, DilkushaC/A Dhaka-1000, Bangladesh. :3522 Telephone :(+8802)956 0312 Telefax No of foreign Correspondences/Bank SWIFT code :(+8802) 956-4122-23 350 :ABBLBDDH E-mail : info@abbank.com.bd Web site 18 www.abbank.com.bd

2.3) VISION & MISSION ; 2.3.1) Vision Statement: " To be the trendsetter for innovative banking with excellence & perfection " 2.3.2) Mission Statement: " To be the best performing bank in the country " 19

^> AB Bank 2.4)Change of name: Arab Bangladesh Bank Limited changed its name to AB Bank Limited(ABBL) with effect from 14 November 2007 vide Bangladesh Bank BRPD circular letter no.-10 dated 22 November 2007.Prior to that shareholders of the bank approved the change of name in the Extra-Ordinary General Meeting held on 4 September 2007. 2.5)Birth OF the Logo The coat of arms of the new logo is inspired by traditional "Shital pati " or "Sleeping mat". The knit and the pattern of interlace in the new logo that echoes the intricate weave of Shital pati symbolizes bonding. This bonding reflects the new spirit of AB Bank. 2.6)Company Philosophy The motto or the philosophy of the Bank is "Bonding Generation". Whether in Personal, Corporate, Treasury or Trade transactions AB Bank Limited is committed to provide the best. Meeting the demand of the bank's discerning customers is not the sole objective. The Bank endeavor to deliver a quality that makes every transaction a pleasurable experience. AB Bank feels that, if they can meet maximum clientele requirements in less time with efficiency, then they will be able to accomplish a successful business in the world of banking. Their main objective is - they want to provide every single customer service available in today's banking procedure for their clientele. Thus they can guarantee the excellence in banking to their valuable customers.AB Bank has remained a bridge-builder between generations for the past 26 years through its reliable, modern and efficient services. 20

^> AB Bank 2.4)Change of name: Arab Bangladesh Bank Limited changed its name to AB Bank Limited(ABBL) with effect from 14 November 2007 vide Bangladesh Bank BRPD circular letter no.-10 dated 22 November 2007.Prior to that shareholders of the bank approved the change of name in the Extra-Ordinary General Meeting held on 4 September 2007. 2.5)Birth OF the Logo The coat of arms of the new logo is inspired by traditional "Shital pati " or "Sleeping mat". The knit and the pattern of interlace in the new logo that echoes the intricate weave of Shital pati symbolizes bonding. This bonding reflects the new spirit of AB Bank. 2.6)Company Philosophy The motto or the philosophy of the Bank is "Bonding Generation". Whether in Personal, Corporate, Treasury or Trade transactions AB Bank Limited is committed to provide the best. Meeting the demand of the bank's discerning customers is not the sole objective. The Bank endeavor to deliver a quality that makes every transaction a pleasurable experience. AB Bank feels that, if they can meet maximum clientele requirements in less time with efficiency, then they will be able to accomplish a successful business in the world of banking. Their main objective is - they want to provide every single customer service available in today's banking procedure for their clientele. Thus they can guarantee the excellence in banking to their valuable customers.AB Bank has remained a bridge-builder between generations for the past 26 years through its reliable, modern and efficient services. 20

> AB Bank 2.7) Branch Location : DHAKA DIVISION : 1. Bandura 2. Joypara 3. Nawabpur Road 4. Kakrail 5. Bhairab Bazar 6. New Elephant Road 7. Karwan Bazar 8. Board Bazar 9. North South Road 10.Madhabdi 11. Chandra 12. Mirpur 13.Pagla 14. Dhanmondi 15. Motijheel 16. Principal Branch 17. Imamganj 18. Mohakhali 19. Rokeya Sharani 20. Gulshan 21. Mymensingh 22. Uttara 23. Jinjira 24. Narayanganj 25. Islampur 21

> AB Bank Chittagong Division : 1. Agrabad 2. Chaumuhani 3. Khulshi 4. Comilla 5. Lohagara 6. Bahaddarhat 7. Cox's Bazar 8. Boalkhali 9. Export Processing Zone (EPZ) 10. Port connecting Road 11. Brahmanbaria 12. Feni 13. Sitakunda 14. CD A Avenue Khulna Division : 1 .Benapole 2.Jhikargacha 3.Kushtia 4. Jessore 5. Khulna 6.Satkhira 22

^ABBank Raishahi Division; 1 .Bogra 2.Naogaon S.Rangpur 4.Chapai 5.Nawabganj 6. Saidpur Svhhet Division : 1 .Boroikandi 2. Garden Tower 3. Sreemongal 4. Tajpur 5. Dargahgate 6.Moulvibazar Barisal Division: 1 .Barisal 23 L

2.8)Organogram of AB Bank Ltd: 24 Managing director Deputy Managing Director Senior Executive Vice President Executive Vice President Senior Vice President Executive Vice President Vice President Senior Assistant Vice President Assistant Vice President Senior Principle Officer Principle Officer Senior Officer Officer ^ABBank

AB Bank Limited Balance Sheet As at 31 December 2008 PROPERTY AND ASSETS Cash In hand (including foreign currencies) Balance with Bangladesh Bank and its agent bank(s) (including foreign currencies) Balance with other banks and financial institutions In Bangladesh Outside Bangladesh Money at call and on short notice Investments Government Others Loans and advances Loans, cash credits, overdrafts, etc Bills purchased and discounted Fixed assets including premises, furniture and fixtures Other assets Non-banking assets Total Assets LIABILITIES AND CAPITAL Liabilities Borrowings from other banks, financial institutions and agents Deposits and other accounts Current deposits Demand deposits Bills payable Savings bank deposits Short-term deposits Fixed deposits Bearer certificates of deposit Other deposits Other liabilities Total Liabilities Capital/Shareholders' Equity Total Shareholders' Equity Paid-up capital Statutory reserve '"-. Other reserve Retained earnings Total Liabilities and Shareholders' Equity 25 Notes 31.12.2008 31.12.2007 1MB Taka

3 3.1 3.2 4 4.1 4.2 56 6.1 6.2 78 9 10

4,096,044,155 4,299,269,940 679,556,149 671,113,391 3,416,488,006 3,628,156,549 2,300,013,425 1,860,735,223 993,239,274 718,485,962 1,306,774,151 1,142,249,261 1,190,678,360 574,080,317 11,408,536,062 8,884,601,130 7,159,183,261 5,855,269,461 4,249,352,801 3,029,331,670 56,708,771,906 40,915,352,218 54,412,358,24 39,303,901,30 9 1 2.296.413.657 1,611,450,918 2,444,650,234 2,381,004,409 5,904,918,443 4,634,821,166 84,053,612,585 63,549,864,403

11 1,872,010,02* 68,560,474,323 53,375,348,391

3,193,343,038 12

5,063,421,076 4,371,717,515 2,523,379,991 2,666,304,319

1,176,651,056 1,105,058,168 9,726,178,008 8,493,116,434 5,089,676,621 3,396,098,545 40,732,652,29 31,131,930,49 2 1 130,325,000 130,325,000

4,118,190,280 2,080,797,920 13 14 15 16 17 5,577,289,877 3,790,916,719 77,331,107,238 59,038,275,138 6,722,505,347 4,511,589,265 2,229,785,400 2,066,121,258 636,829,248 1,789,769,440 743,261,800 1,356,905,450 715,626,287 1,695,795,728

84,053,612,585 63,549,864,403

AB Bank Limited Profit and Loss Account For the year ended 31 December 2008 [RATING INCOME est Income est paid on deposits and borrowings, etc. interest income tetment Income mission, exchange and brokerage I jroperating Income il operating income (a) RATING EXPENSES (y and allowances , taxes, insurance, electricity, etc I expenses age, stamps, telecommunication, etc. onery, printing, advertisement, etc. (executive's salary and fees ictors' fees tors' fees rges on loan losses redation and repairs of Bank's assets sr expenses il operating expenses (b) Vit before provision (c = a-b) sion against loans and advances sion for diminution In value of investments' provisions provision (d) t before taxation (c-d) sion for taxation nttax rred tax profit after taxation opriations iory reserve ral reserve ends, etc ined surplus ings Per Share (EPS) annexed notes form an Integral part of the Profit and Loss Account Notes 2008 2007 Taka Taka

20 21

7,366,847,21 5,269,904,6 3 60 (5.336,153.27 (3.830.623.4 4) 89) 2,030,693,93 1/439,281,1 8 71

2 2 23 24

2,152,888,46 1,734,306,4 3 46 1,759,019,17 1,305,338,9 1 22 206.424.306 177,654.705

4,118,331,83 3,217,300,0 9 74 6,149,025,87 4,656,581,2 8 45 1,008,675,51 696,776,012 2s

25 26 27 28 29

173,906,367 4,409,340 57,105,073 64,989,223 7,341,452 2,378,949

144,255,680 1,912,103 57,413,151 44,720,259 5,599,996 1,588,592 2,116,415

3 0

1,562,100

31

154,558,663 375,711,044

117,971,014 258,934.177

32 33

1,850,637,72 1,331,287,4 2 00 4,298,388,15 3,325,293,8 5 45 281,266,515 117,153,000 366,000,000 9,400,000 13 900.000 1.

34 35 36

299.347.000 097.786315

507,300,000

3,600,621,84 2,817,993,8 0 45 1.300.000.00 914.500.000 0 1,381,655,68 831,228,293 4

13.2

(81,655.684) 83,271.707 2,300,621,64 1,903,493,8 0 45 720,124,328 563,598,769

37 720,124,328 563,598,769

1,580,497,31 1,339,895,0 2 76

103.18 38 26

8537

Chapter Three Branch Information Segment Objective This Section will focus on : 3.0) History of the Mirpur Branch 3.1) Structure of Mirpur Branch 3.2) Department of the Branch 3.3) Present position of the Branch 27

AB Bank 3.0)Overview of ABBL, Mirpur Branch th Mirpur branch is the local branch of the bank in Dhaka. It was established in 28 March 1994. At present 22 officers are working in the branch. Code no. of the branch is 4015. Present address of the branch is 5-A/5-B, Darus Salam Main Road (1st & 2nd floor).Section-1, Mirpur, Dhaka-1216. E-mail ID of the branch: mirb@abbank.com.bd AB Bank is totally involved with the modern IT facilities. The bank is running their business under fully online service. They uses modern technological products ,like computer, printer, scanner, photocopier, telephone, fax, internet facility etc. The security system of this bank is so restricted, they uses (CC) close circuit camera for monitor every functions of the branch. 28

^ABBank 3 .1)Organizational structure of Mirpur branch Vice President (VP) &Relationship Manager Assistant Vice President (AVP)& Sub Manager Senior Principal Officer (SPO) Principal Officer (PO) \ /

Senior Officer (SO) I Officer (O) 29

^ABBank 3.2) Department of the Branch : There are several departments of the AB Bank Mirpur Branch that help for the smooth running of the banking business Departments...of The Branch Account opening & customer service Cash V^MtSll

Clearing - Ledger/ deposit

[Remittance

Fixed deposit receipt (FDR)

Loan and Advance

AB Bank wants to build 'cement relationship with customers' and General banking creates a vital link between customer and bank. It's really crucial department for the progression of the bank. It is the introductory department of the Bank to its customer The AB Bank Mirpur Branch has the required section of general Banking. Every day it receives deposits from customers and meets their demands for cash by honoring instruments. General Banking department is that department which is mostly exposed to the maximum number of bank customer. 30

3.3) Present Position: ^ABBank Particulars

Year 2005 2006 127.35 203.25 10.07 265.28 27.72 2007 136.74 187.47 10.20 285.15 25.92 2008 125.28 140.89 7.44 149.77 23.74

Deposit Advance Profit Letter of credit Export 188.79, 7% 111.34,4% 2005, 80% m Particulars D Deposit D Advance Profit q Letter of credit Export 31

111.34 188.79 6.19 211 17.00

Chapter Four Function of ABBL Segment Objective This section will focus on : 4.0) General Banking System 4.1.) Accounts opening Department 4.2) Remittance Department 4.3) Foreign Exchange Department 4.4) Credit / loan Department 32

^ABBank 4.1 .DCurrent short term deposits (CD) In future Current Account is opened for both individuals & business concerns including non-profit making organization. But now individual account is closed for the by the order of Bangladesh Bank. Account must be open only on the name of business. For opening a sole proprietorship account, the account holder must provide his organizations names , what type of organization that is, where that is located, his true names, present & permanent address of the business owners, date of birth, place of birth, account holders recent two copies color passport size photograph , one copy nominees photograph, proprietorship valid trade license photocopy, TIN certificate, national ID card photocopy or passport or other employees ID card or certificates from the ward commissioner or union council chairman certificates. Detail of occupation or employment & source of wealth or income. He have to need a introducer, who has a existing account with ABBL. The requirement of sole limited company account is same as of sole proprietorship account plus: Certificate of incorporation. Resolution of the board of directors. Memorandum & articles of association. Proper information as of personal account & directors & account operators. Certificate of the returns submitted to the register of joint stock companies. Attestation by embassies or high commissions in the respective countries if the company is incorporated outside of Bangladesh. Also different club, co-operative society, private school, college & madrasa, trustee board can open current as per provide their board 34

^ABBank resolution, deed of those organization & others documents as per types of organization. 4.1.2)Saving Account (SB); Saving account always opened by individuals for saving purpose of deposited amount over a period of time. For opening a saving account a persons must provide his true names, parents names, present & permanent address, date of birth, place of birth, account holders two copy color photograph, one nominees photograph, voter ID card or passport or other employees ID card or certificate from the ward commissioner or union council chairman certificates. Detail of occupation or employment & source of wealth or income. He have to need a introducer, who has a existing account with ABBL. Interest on saving account is 6.00%. 4.1.3)Fixed Deposits Account (FDR); The Bank offers higher rates of interest on such deposits. Usually customer are allowed to open this A/C for a certain period. FDR with different maturity offered by the bank can be shown by the Following table: Maturity Interest rates Up to 10 lac Over 10 lac to 50 lac Above 50 lac FDR for 1 months FDR for 3 months FDR for 6 months 8% 9.50% 9.00% 8.25% 9.50% 9.00% 11.25% 8.50% 10.00% 9.50% 11.50%

FDR for 12 months 11% & above 35

> AB Bank Interest rates Up to 10 lac 11%, 30% 9.00%, 24% 8%, 21% 9.50%, 25% I FOR for 1 months I FOR for 3 months ! D FDRfor 6 months O FOR for 12 months & above 4.1.4)Monthlv Saving Deposit (MSDS); Monthly saving deposit account open for the businessman & for the general people who wants to save money. This account must deposit with in 10th banking days of every month & if any one fail to deposit then deposit next with current month installment by provide some fine. 4.1.5)Double Deposit Scheme (DPS): Deposited amount multiple within 6 years & minimum deposited amount is 1 lac to above. 4.1.6)Special Term Deposit (STD); These types of account also known as special notice deposit & STD account provide interest for minimum balance TK.5 lac to above & interest rate is 5.00%. 36 SB?

4.2)Procedure of Closing Account; A customer may close out his/her account any time submitting to the branch. The customer should be asked to draw the final check for the amount standing to credit of his account less the amount an other incidental charge & surrender the unused cheque leaves. The account be debited for the account closing charge etc. And unused cheque leaves should be destroyed by the authorized officer of the bank. 4.3)Remittance Department: 4.3.1)Local Remittance Department; Banks have a wide network of branches all over the country & offer various kinols at remittance facilities to the public. Obviously the bank charges commission on the basis of bills amount. Remittance are safe , swift, inexpensive & simple. Type of Remittance ; a) Pay order (PO) b) Demand Draft (DD) c) Telegraphic Transfer (TT) Pay Order (PO); Pay order is an instruments, which is used to remit money with in a city through banking channel the instrument are generally safe as most of them are crossed. Demand Draft (DD): Demand draft is many popular instrument for memiting money from corner of country another. The instrument is basically used for transfer & payment. Difference between pay order & Demand Draft is in terms of place only PO is used for remittance money with 37

4.2)Procedure of Closing Account; A customer may close out his/her account any time submitting to the branch. The customer should be asked to draw the final check for the amount standing to credit of his account less the amount an other incidental charge & surrender the unused cheque leaves. The account be debited for the account closing charge etc. And unused cheque leaves should be destroyed by the authorized officer of the bank. 4.3)Remittance Department: 4.3.1)Local Remittance Department; Banks have a wide network of branches all over the country & offer various kinols at remittance facilities to the public. Obviously the bank charges commission on the basis of bills amount. Remittance are safe , swift, inexpensive & simple. Type of Remittance ; a) Pay order (PO) b) Demand Draft (DD) c) Telegraphic Transfer (TT) Pay Order (PO); Pay order is an instruments, which is used to remit money with in a city through banking channel the instrument are generally safe as most of them are crossed. Demand Draft (DD): Demand draft is many popular instrument for memiting money from corner of country another. The instrument is basically used for transfer & payment. Difference between pay order & Demand Draft is in terms of place only PO is used for remittance money with 37

^ABBank the city where as DD is used for within the country too, constitute current liability on the part of a Bank. Telegraph Transfer (TT) ; Telegraph Transfer is one of the fastest means of transferring money from one branch to another or from one to another. The TT issuing bank instructs its counterpart by telex message regarding remittance of money. No instruments is given for TT, Both parties should have account as money is for transferred. 4.3.2)Foreign Remittance ; The word "REMITTANCE" means transfer of funds from one place to another either within the country (local Remittance) or from one country to other globally (Foreign Remittance) by means of different recognized modes. The foreign remittance is divided into two (2) parts, which is : - Outward Foreign Remittance - Inward Foreign Remittance Outward Foreign Remittance ; An outward foreign remittance in involves foreign trade & is as such subject to the approval of Bangladesh Bank with the expectation of remittances, for specified purposes for which authorized dealers (AD's) have the authority to initiate remittances without prior reference to the central bank. 38

V> AB Bank Inward Foreign Remittance ; Inward foreign remittance covers purchase of foreign currency in the form of foreign T.T, D.D & bills, T.C etc. Sent from abroad favoring a beneficiary in Bangladesh. Purchase of foreign exchange is to be reported to Exchange Control Department of Bangladesh Bank. Types of Foreign Remittance ; Foreign Demand Drafts (FDD) Mail Transfer (MT) Traveler's Cheque (TC) Foreign Exchange Department; Trade refers to the process or mechanism by which the currency of one country is converted into the currency of another country. Foreign trade is the means & methods by which rights to wealth in another country's currency. Transfer of goods & services from one country to another country against foreign exchange. Trade among nations is a common occurrence & normally benefit both the exporter & importer. Components of Foreign Trade ; Foreign Trade mainly divided into three wings. They are as below Import Export Foreign Remittances 39

^ABBank 4.4) Regulation for foreign Local Regulations: Our foreign exchange transactions are being controlled by the following rules & regulation. . *> Foreign Exchange Regulation Act 1947. *> Bangladesh Bank issues foreign exchange circular from time to time to control the export, import & remittance business. < Ministries of commerce issues export & import policy giving basic formalities for import & export business. < Sometime CCI&E issues public notice for any kind of change in foreign exchange transaction. Bangladesh bank published two volumes in 1996. This is compilation of the instructions 4.5)International regulations of foreign exchange: There are also some international organizations, influencing our foreign exchange transactions. Few of them are discussed bellow: > International Chamber of Commerce (ICC) is a world wide nongovernmental organization of thousands of companies. It was founded in 1919. ICC has issued some publications like UCPDC, URC, & URR etc, which are being followed by all the member countries. There is also an international court of arbitration to solve the international business disputes. 40 SB?

&> AB Bank < World Trade Organization (W.T.O) is another international trade organization established in 1995. General Agreement on Tariff & vital role in international trade, through its 124 member countries. Trade (GATT) was established in 1948, after completion of it's 8th round; the organization has been abolished & replaced by W.T.O. This organization has vital role in international trade, through its 124 member countries 4.6)Foreign Exchange Mechanism Foreign exchange department plays significant roles through providing different services for the customer. Facilitating the trade with foreign country is the most important among those services the key instrument which facilitates this trade is L/C (Letter of Credit). 4.7)Letter of Credit(L/C): Letter of Credit may be defined as an arrangement or guarantee issued by a bank at the request of the customer to make payment to or order of the beneficiary or authorized another bank to effect such payment or to pay, accept or negotiate such bill of exchange against stipulated documents, provided that the terms and conditions of the L/C are complied with. (UCPDC-500,1993). The Advising Bank: It is the bank in the Exporter's (Normally the exporter's bank), which is usually the foreign correspondent of Importer's bank through which the L/C 41

is advised to the supplier. If the intermediary bank simply advises/notifies the L/C to the exporter without any obligation on its part, it is called "Advising Bank". The Confirming Bank; If the Advising Bank also adds its own undertaking to honor the credit while advising the same to the beneficiary, he becomes the Confirming Bank, in addition, becomes liable to pay for documents in conformity with the L/C's terms and conditions. The Negotiating Bank: The Bank that negotiates the bill of exporter drawn under the credit is known as Negotiating Bank. If the advising bank is also authorized to negotiate the bill drawn by the exporter, he becomes the Negotiating Bank. The Accepting Bank: A Bank that accepts time or unasked drafts on behalf of the importer is called an Accepting Bank. The Issuing Bank can also be the Accepting Bank. The Paying Bank and the Reimbursing Bank: If the Issuing Bank does not maintain any account with a bank that will be negotiating the documents under a L/C, then arrangement is made to reimburse the negotiating bank for the amount to be paid under from some other bank with which the Issuing Bank maintains his account. The latter bank is known as Reimbursing Bank. 42

^ABBank Foreign Exchange Mechanism: MHBH

^^^^^ BUYER/ IMPORTER Makes Payment against Document /syi//^ \ T k 1 ^ I

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- , /U NEGOTIATING _...,, .. _ ... , -j KAINJV

Issue L/C

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FIG: FOREIGN EXCHANGE MECHANISM 43

4.8) Import Department Understanding: Imports are foreign goods and services purchased by consumers, firms, & Governments in Bangladesh. The importers are asked by their exporters to open letter of credits so that their payment against goods is ensured. Classification of importers: Goods are being imported for personal use, commercial purpose or industrial use. So, there are three kinds of importers such as: Personal importer: if the importer is insisting to import goods from the abroad for his need this importer called personal importer. *** Commercial importer: if the importer is insisting to import goods for commercial purpose then it is called commercial importer. < Industrial importer: if the importer is insisting to import goods for industrial purpose then it is called Industrial importer. Import Policy: Under the import and export control Act, 1950 the Government of Bangladesh formulates the Import policy through Ministry of Commerce. The existing Import policy (1997-02) has come into effect from June 14,1998 to June 30,2002. 44

4.9)Steps Involved in Import Procedures: *** Procurement of IRC from the concerned authority ** Signing purchase contract with the seller. * Requesting the concerned bank (importer's bank to open an LC (irrevocable) on behalf of the importer favoring the exporter/ seller/ beneficiary *J* The issuing bank opens/ issues the LC in accordance with the instruction/ request of the importer and request another bank (advising bank) located in seller's /exporter's country to advise the L'C to the beneficiary. The issuing may also request the advising bank to confirm the credit, if necessary. *l* The advising bank advises/informs the seller that the LC has been issued. *** As soon as the exporter/seller receives the LC and is satisfied that he can meet LC terms and conditions, he is in a position to make shipment of the goods. After making shipment of goods in favor of the importer the exporter/s submits the documents to the negotiating bank for negotiation. 45 J

> AB Bank 4.11)Money transfer: Western Union a fast, reliable and convenient way to send a money transfer: Western Union Financial Services Inc. U.S.A. is the number one and reliable money transfer company in the world. This modern Electronic Technology based money transfer company has earned world wide reputation in transferring money from one country to another country within the shortest possible time. AB Bank Limited has set up a Representation Agreement with Western Union Financial Services Inc. U.S.A. Millions of people have confidence on Western Union for sending money to their friends and family. Through Western Union Money Transfer Service, Bangladeshi Wage Earners can send and receive money quickly from over 280,000 Western Union Agent Locations in over 200 countries and territories world wide- the world's largest network of its kind, only by visiting any branches of AB Bank Limited in Bangladesh. 47

^ABBank 4.12)Types of Cheques collected by clearing Department: 01.Transfer Cheque: Transfer cheques are those cheques which are colleted and paid by the same branch of ABBank. 02.Local Bills Collection Cheques (LBC): Local bills collection cheques are those cheques which are collected and paid by two different branches of a bank situated in the same city. 03. Outward Bills Collection Cheques (OBC): OBC cheques are those cheques, which are collected and paid by two different branches of same or different bank situated in the outstation. 04. Clearing Cheques: When the payee or endorsee (whoever deposits cheque for collection) and the drawer of a cheque maintain accounts with different banks, the collecting bank can receive the amounts of cheques from the paying banker is any of the following manners: <* It can send its representative with the cheque to each of the following banks and collect cash. This procedure is wasteful of time and incubersome and risky. 48

^ABBank Frequent transportation of the currency, but it has all the other disadvantages of the first. Besides, it may result in lying up the bank can maintain account with the paying banks (practically of the local banks), deposit cheques with the drawee banks for credit to its account. The method avoids the risk of considerable sums of the money most of the local banks. The most efficient method of collecting and paying such cheques is that in which these cheques are exchanged by representatives of the various banks, who meet a fixed place at fixed hours and make the settlement through controlling banks. The banks, so joining, from themselves into a "member of clearing house" and the fixed meeting place are called a "clearing house". 4.13)The Clearing House: Where inter-bank receivables and obligations are settled. A particular house/place under the control and supervision of the central bank of the country where representatives of the member banks / scheduled banks/ assembles/meet together for settlement of their respective banks receivables and payables. It sits on all working days. In our country clearing house is organized by the Bangladesh Bank (state bank of Bangladesh) at the different big cities. 49 J

Common procedure for all kind of cheques etc; * Receiving and scrutinizing the cheques and other deposit instruments, and the pay-in-slip at the counter. *J* Affixing the stamps. ** Scrutiny receipt by the authorized officer. *** Returning the counterfoil to the depositor. * Separate the cheques into transfer, LBC & clearing house. Scrutiny of the pay-in-slip (Deposit-slip) & cheques: 1) On both the counter-foil and the deposit-slip, the following should be checked -< Date of deposit < Account number. <* Title of the account. !* The cheques number, amount and the drawee bank's name. *** Total amount in words and figure. 2) The depositors name should be given on the larger portion of the pay-in-slip. 3) Customer should use separate deposit slip for transfer, LBC, & clearing cheques etc. 4) The instrument is checked for any apparent discrepancy and is compare with the particulars noted in the pay-in-slip and its counter foil. 5) The instrument is checked for any apparent discrepancy and is compare with the particulars noted in the pay-in-slip and its counter foil. 6) The instrument is checked for any apparent discrepancy and is compare with the particulars noted in the pay-in-slip and its counter foil. 7) The instrument is checked for any apparent discrepancy and is compare with the particulars noted in the pay-in-slip and its counter foil. UJ 50

^ABBank 8) The instrument is checked for any apparent discrepancy and is compare with the particulars noted in the pay-in-slip and its counter foil. 9) In case an order instrument is being deposited in second payee's account guarantee may be obtained from the second payee and is attached to the pay-inslip. 10) In case the payee's name on the crossed instruments may be accepted but only from customers well known to the bank and after obtaining an indemnity. 11) The amount noted should be the same as the amount of the instrument and the amount in words and figure should be same. 4.14)Types of Clearing; Outward Clearing:When a particular branch receives instrument drawn on the other bank within the clearing zone and those instruments for collection through the clearing arrangement is considered as outward clearing for that particular branch. Inward Clearing:When a particular branch receives instruments which drawn on themselves and sent by the other member bank for collection are treated as inward clearing. 51

Common procedure for all kind of cheques etc; * Receiving and scrutinizing the cheques and other deposit instruments, and the pay-in-slip at the counter. *J* Affixing the stamps. ** Scrutiny receipt by the authorized officer. *** Returning the counterfoil to the depositor. * Separate the cheques into transfer, LBC & clearing house. Scrutiny of the pay-in-slip (Deposit-slip) & cheques: 1) On both the counter-foil and the deposit-slip, the following should be checked -< Date of deposit < Account number. <* Title of the account. !* The cheques number, amount and the drawee bank's name. *** Total amount in words and figure. 2) The depositors name should be given on the larger portion of the pay-in-slip. 3) Customer should use separate deposit slip for transfer, LBC, & clearing cheques etc. 4) The instrument is checked for any apparent discrepancy and is compare with the particulars noted in the pay-in-slip and its counter foil. 5) The instrument is checked for any apparent discrepancy and is compare with the particulars noted in the pay-in-slip and its counter foil. 6) The instrument is checked for any apparent discrepancy and is compare with the particulars noted in the pay-in-slip and its counter foil. 7) The instrument is checked for any apparent discrepancy and is compare with the particulars noted in the pay-in-slip and its counter foil. UJ 50

^ABBank 4.15)Process Flow Chart Clearing (Inward): 52 Receipt of the instrument from messenger Scrutiny of the instrument & tallying the amount of the schedule & that of the instrument. J3Entry into Inward Clearing Register Sending the instrument to respective department for posting preparation of single credit voucher & IBCA of honored cheques / instruments Preparation of reason memo if any dishonor cheque/instruments Hand-over the IBCA & dishonor instruments if any to messenger. Filling the schedules and statements in the respective files m rtrtb~ SB?

> AB Bank 4.16)Process Flow Chart Clearing (Outward): Receipt of the instruments with the paying-in-slip 43Scrutiny of the instruments & paying-in-slip & affixing Received Seal 43Affixing Special Crossing Endorsement & clearing Seal on the back of the instrument. Return of the counterfoil to the depositor with seal signature. 43Entry into the Outward Register. 43Separation of the instrument from the paying-in-slip. Classification of the instrument first bank wise & then branch wise. Preparation of schedule branch wise & bank wise & signed. Preparation of clearing house book & signed by the officer. 43Tally the total of clearing house-book with the total amount shown in the clearing register. 53

AB Bank Preparation of the debit Voucher (IBDA) by debiting Local Branch. 43Sending the instrument, schedule, clearing house-book along with IBDA to the Local office through messenger. Filling/Recording all office copies. Releasing the credit vouchers to respective dept. for posting. Preparation of Debit Voucher if any instrument returned dishonor. 4.17)Cheque returns: Reasons for returning cheques: * Insufficient fund/balance exceeded. * Account closed. > Payment stopped. Amount in words and figures differs. * Drawer signature differs/illegible/required. Alteration/mutilation requires drawer's confirmation. Cheque post dated /cheque out of date. ** Date incomplete /wrong/missing. Payee's endorsement required /irregular.

^ABBank > Warrant no./folio no./advice no. differ from booklet. <* Clearing house /crossing stamp missing. < Present through collection basis. J Not drawn on us /please send on our concerned branch. <* Advice/ intimation not yet received. > Signature and seal required. J 7 day's notice required. > Please present after 2/3 days. 4.18)FCD Department: FCD department is the nerve center of bank. Total transaction per day is recorded in accounts dept. all departments of the branch send their daily transaction statement to the accounts department. Functions of the department; *J* To maintain all transaction through double entry system in 'Cash- CumDay Book'. J To maintain record in General ledger for different heads of affairs. J To maintain record in subsidiary ledger for only suspense and sundry accounts. *** 'Statement of affairs' which includes assets and liabilities position for everyday. 55

t To record daily IBTA (Inter branch transaction account) Extract. *J* To prepare statement of income for everyday < To prepare statement of expenditure for everyday. < To maintain transfer book for IBTA. *** To prepare supplementary from transfer book. * To prepare statement of provisional income for the month. < To prepare statement of provisional expenditure for the month. * To prepare consolidated statement of provisional income & expenditure for the month *I* To prepare salary statement for every month. *J* To maintain salary disbursement register. ** Keeping al vouchers after the transactional period. *t* Weekly & monthly statement of affairs with income, expenditure & subsidiaries. * Half-yearly Schedule Bank Statements-3 (SBS-3) * Monthly Schedule Bank Statements-1 (SBS-1) > Quarterly Schedule Bank Statements-2 (SBS-2) < Monthly comparative statement 56

5* AB Bank 4.19)Loan and Advance department: Loan and advance department is the heart of bank. The major source of Bank's income conies from loan and advance. For this reason, Proper credit management is a crying need of a bank. This section is crucial for the bank because of the associate risk and profit potential. There are several types of credit that the bank offers for the customer. Bank loan or bank advance is a form of finance. It indicates- a specified sum of money lent by a bank to customer, usually for a specified rate of ordinary interest (calculated by taking 360 day as a year). Handling 'load and advance' is the major function of bank. Difference between loan and advance: Loan: It refers to loan term credit i, e"money lent by a bank for more than one year (e.g.5 or 10 or 15 year etc) Such as - Loan general, House building loan, Project loan etc. Advance: it refers to short term credit i.e. 'Money lent by a bank for less than one year' Such as - Cash credit, overdraft, discount etc. In comprehensive sense, loan is considered as a part of advance despite of the above difference. AB Bank also classified loans and advances according to this comprehensive 57

AB Bank Different Advances offered by ABBL Advances -Loan General -House Building Loan -Loan against Imported Merchandise -Loan Against Trust Receipt -Loan Against Packing Credit -Transport Loan Project loan -Demand Loan -Consumer Finance -Lease finance -Small Business Loan -House renovation loan SOD (FO) (G) -Pledge -Hypothecation -Inland Bills Purchased Foreign Bills Purchased -FDBP & Discounted Payment against document 58

> AB Bank Personal Loan Festival small business loan Festival personal loan Housing loan Loans: Under the loan system, credit is given for a definite purpose and for a predetermined period. Normally, these loans are repayable in installments, some major loans of the bank are describes as under: a) Loan General: When an advance is made in lump sum repayable either in fixed monthly installments and no subsequent debit is ordinarily allowed expect by way of interest, incidental charges etc called general loan, it is usually for a single purpose where the entire amount may be required at a time or in a number of installments within a short period of time. Generally, when the advance can't be classified into any category, it is considered as 'Loan General'. b) House Building loan: In order to solve financial incompatibility to make a house, the bank offers this loan to middle class people. Period of loan is maximum 5 years. Limit of the amount of the loan depends on the customer banker relationship. 59

^ABBank c) Loan against imported merchandise (LIM): LIM is a temporary loan and allowed against imported goods. LIM may be created at the request of the importer while he is not in a position to take delivery of import bills by making payment of entire bank dues. The importer has to keep the goods in bank's custody for getting this loan. d) Loan against trust receipt (LTR): LTR is also a temporary loan and allowed to the customer against their application on the basis of only trust which is generally built on good customerbanker relationship. After sanction of LTR, import bills are handled over to the importer who will clear the goods from the custom authorities by making payment duty, VAT and other charges. e) Consumer finance scheme: The Scheme aims at improving the standard of living of the fixed income group. Under the scheme the clients may secure loan facilities at easy installments to procure household amenities. It meets household needs of service holders: Furniture/ TV/ Refrigeration & others house-hold durables. Its Credit Ceiling is Up to tk. 1.00 lac and term is 2 years. f) Lease finance scheme: An entrepreneur, under this scheme, may avail of the lease facilities to procure industrial machinery (without having to purchase it by down payment) with easy repayment schedule. The clients also get special rebate in their income- tax payment 60

^ABBank under the scheme. Items leased out to the new/ existing industries to procure machines for the industries. g) Small business loan: This loan is introduced for smooth running/ expansion of business of small entrepreneurs who are honest, sincere & promising. This type of loan diversifies bank's lending with the requirement of the time. Its 'Credit Ceiling' is Up to tk. 5.00 Lac and 'term' is 2-5 years. h) House renovation loan: The purpose of the loan is to help genuine house or flat owners (not developers) to undertake repairing or renovation works for better living or increased rental income. 'Credit ceiling' of the loan is Up to tk. 5.00 Lac and 'Term' is 5 year. I) Personal loan: The loan serves the purpose of meeting emergency financial expenses of service holders such as Medical treatment, Marriage, Maternity, Admission of Children, Purchase of banks, Exam fees etc. Credit Ceiling of the loan is Up to tk. 1.00 Lac and Term is at least 6 month but not more than 3 years. 61

>> AB Bank Overdrafts: When a current account holder is permitted by the banker to draw more than what stands to his credit, such ah advance is called an overdraft. ' it is an automatic coverage by the bank of all checks presented against the firm's account, regardless of the account balance'. Interest is calculated and charged only on the debit balances on daily product basis. Generally two type of overdraft is exercised in the bankSOD (FO): It is allowed against financial obligation for promotion of economic and business activities. SOD (GE): It is allowed to the traders for business promotion and economic activities. Cash Credit: Cash Credit is a continuous type of short term advance. 'Under this system, the banker specifies a limit, called the cash credit limit, for each customer, up to which the customer is permitted to borrow against the security of tangible assets or guarantees.' Two types of cash credit are exercised in ABBL a) Cash Credit (Hypothecation): Hypothecation is a charge on company for a debt, but neither ownership nor possession passes to the creditors. In hypothecation, both ownership and possession remain under debtor. This type of credit is allowed to the traders and industrial borrowers for promoting trade and commerce and industries. This type of advance depends mainly upon the trustworthy of the party. 62

AB Bank b) Cash Credit (Pledge): In this case, possession of goods passes to the creditor or bank. It is allowed for promoting trade, commerce and industries of the country against pledge of stock in trade under Bank's control. SMELoan: Considering the volume, role and contribution of the SMEs, in the last two decades AB Bank has been patronizing this sector by extending credit facilities of different types and tenor. As of now 54% of the banks total loan portfolio is segmented to the SMEs which deserve all out attention in our plans, projections and forecasting. As such the bank has emphasized on the following issues: ** To provide the best services to the SME sector *5 To increase the SME portfolio of ABBL significantly > To improve the quality of ABBL's portfolio SME Sectors in which AB Bank has participated so far: *> Agro machinery * Poultry * Animal Feed *> Dairy Product * Fruit Preservation 63

^ABBank I* Hotel & Restaurants > Garments Accessories Leather products : Plastic product Furniture : Wooden & Metal Ink : Paint > Printing & Packaging Wire & Cable > Aluminum > Cement and Lime Plaster Clinics and Hospitals Engineering & Scientific Instruments SME LOAN 64

5.1) Internship Duties : My Daily Activities in AB Bank Limited First day at office : I have started my internship program in AB Bank Limited from March 03,2009. First day I reached office at 8.45 a.m. At first I meet the Branch relationship manager Chowdury A.N.M.M. Ali Beg .And after the request to sub manager MD. kharul Alam to introduced me with all of the officer staff. After introducing events He placed me in Account opening department. At first day I worked there till 5.30. Working Hours ; I worked there as like a permanent employee. Every one is suppose to be in the office within 8.45 am. I have tried to maintain the time line. Though there is a sign out time but most of the employee worked in office till 7.00 pm. Working Activities : In the day of my internship period I have performed the various types of activities & I believe this practical task help me in my near future. The task I have done these are as bellow : Checking customer database Checking cheque books Making cheque books Adjust of debit & credit balance Bill voucher writing 66

^ABBank Update the register book - Pay order writing - Opening the customer accounts - Prepare the L/C - Giving the payment of Western Union - Posting the transaction in customer. 5.2) Learning Points : Internship is the part of our Bachelor of Business Administration Program. After completing my internship program I have learn something about the overall banking system such as how to manage market, how to making information, which factors influence the target customers, relation with customers etc. From the internship period I have learn how to manage customer, banking service, how to influence customer, how to manage an officer, how to match with the new culture. I was very interested how to manage customer & how to manage an office like as function of a manager . I have progressed in understanding of my interested matter . Now I will capture all the works, which is done by a manager. Three month work with a bank is not sufficient for learning overall banking system without any help of the manager or my supervisor & all officer staff. They gave me to sufficient opportunity to work & help about these matters which matters was very tough for me. In my Business Administration Program theoretically I have learned how to manage an office & their discipline & lastly I have learned through practically how to manage an office & their work. Through practical knowledge I have seen & worked the entire thing 67

^ABBank Update the register book - Pay order writing - Opening the customer accounts - Prepare the L/C - Giving the payment of Western Union - Posting the transaction in customer. 5.2) Learning Points : Internship is the part of our Bachelor of Business Administration Program. After completing my internship program I have learn something about the overall banking system such as how to manage market, how to making information, which factors influence the target customers, relation with customers etc. From the internship period I have learn how to manage customer, banking service, how to influence customer, how to manage an officer, how to match with the new culture. I was very interested how to manage customer & how to manage an office like as function of a manager . I have progressed in understanding of my interested matter . Now I will capture all the works, which is done by a manager. Three month work with a bank is not sufficient for learning overall banking system without any help of the manager or my supervisor & all officer staff. They gave me to sufficient opportunity to work & help about these matters which matters was very tough for me. In my Business Administration Program theoretically I have learned how to manage an office & their discipline & lastly I have learned through practically how to manage an office & their work. Through practical knowledge I have seen & worked the entire thing 67

^ABBank which was very much important to clearly understand managerial function . So I can say this experience really increase my desire to become a manager. Finally, the internship report also relate with my major field of study , because which I have learned from our university some part of my learning is shared through internship program & this share to build me & expert . So, now I am expert in the field of how to manage customer , banking service , how to influence customers , how to manage an office , how to match with a new culture . 5.3) SWOT Analysis SWOT Analysis provides an opinion & judgment whether an organization's business condition is healthy or unhealthy. 5.3.1) STRENGTH: > Strong Brand image of AB Bank Ltd > Good management system > The bank has earned customer loyalty as organizational loyalty. > ABBL is always trying to add new & modern equipment > The top management officials all have had reputed of banking experience, skill & proficiency. 5.3.2) WEAKNESS : > Low pay structure than other commercial Banks > A single counting machine > A remarkable portion of the total human resources is inefficient 68

^ABBank > The Bank dose not have any Research & Development Division . 5.3.3) OPPORTUNITY : > Potential & large market > Available potential source of fund > Diversity in to related product > They can also offer micro credit business for individual & small business. > Many branches can be opened to research the banks services in remote locations . 5.3.4) THREATS : > Changing customer needs & tastes > Growing bargaining power of customer > Recruitment process is threaten for the bank > Local competitors can also capture a huge market share by offering similar products & services provided by the bank . 5.4) RECOMMENDATION; Signature of witness on all-important documents should be obtained For increasing more funds customer may by offered different types of prizes The account -opening department needs skilled staffs for smooth working. Their statement should be computerized which is cost effective &safe. ABBL should reduce their interest rate on different credit scheme. Cleanliness services should be proper & up-to-date. 69

References: Reports: 1 .General Banking Operation Manual (Bangladesh Bank) 2. Annual Report (2007,2008) of ABBL Internet: 1 .www.google.com 2.www.abbank.com.bd 71

Corporate Banking At AB Bank we provide complete range of solutions to meet Corporate Customers' requirement. Our Corporate Banking solutions include a broad spectrum of products and services backed by proven, modern technologies. Corporate Lending Our specialist teams offer a comprehensive service providing finance to large and medium-sized businesses based in Bangladesh. For more information as to how we might best meet your corporate debt needs, please contact us at our Corporate Head Office. Structured Finance We have a specialist Structured Finance Team who arrange and underwrite finance solutions including Debt and Equity Syndication for financial sponsors, management teams and corporates. Also we provide corporate advisory services. We aim to provide tailored financing solutions with a dedicated team who can rapidly respond to client needs. Following are some of the products and financial tools of Corporate Banking: Project Finance . . Working Capital Finance Trade Finance Cash Management Syndicated Finance, both onshore & off-shore Equity Finance, both onshore & off-shore ' . Corporate Advisory Services . . '

SME Banking SME Loan Considering the volume, role and contribution of the SMEs, in the last two decades AB Bank has been patronizing this sector by extending credit facilities of different types and tenor. As of now 54% of the bank's total loan portfolio is segmented to the SMEs which deserve all out attention in our plans, projections and forecasting.. As such the bank has emphasized on the following issues: To provide the best services to the SME sector ' :' To increase the SME portfolio of ABBL significantly To improve the quality of ABBL's portfolio SME Sectors in which AB Bank has participated so far: Agro machinery Poultry Animal Feed Dairy Product ' ; " ' '.' :', Fruit Preservation : Hotel & Restaurants Garments Accessories Leather products Plastic product Furniture : Wooden & Metal Ink Paint Printing & Packaging .'" . . , y ...'.' ... Wire & Cable Aluminum Cement and Lime Plaster Clinics and Hospitals Engineering & Scientific Instruments

SME Banking SME Loan Considering the volume, role and contribution of the SMEs, in the last two decades AB Bank has been patronizing this sector by extending credit facilities of different types and tenor. As of now 54% of the bank's total loan portfolio is segmented to the SMEs which deserve all out attention in our plans, projections and forecasting.. As such the bank has emphasized on the following issues: To provide the best services to the SME sector ' :' To increase the SME portfolio of ABBL significantly To improve the quality of ABBL's portfolio SME Sectors in which AB Bank has participated so far: Agro machinery Poultry Animal Feed Dairy Product ' ; " ' '.' :', Fruit Preservation : Hotel & Restaurants Garments Accessories Leather products Plastic product Furniture : Wooden & Metal Ink Paint Printing & Packaging .'" . . , y ...'.' ... Wire & Cable Aluminum Cement and Lime Plaster Clinics and Hospitals Engineering & Scientific Instruments

Islami Banking To provide the Islamic banking services in accordance with the principles of Islamic Shariah, AB Bank has established Islamic Banking Wing and started its functioning by opening full-fledged Islamic banking branch on 23.12.2004. The branch is known as AB Bank Islami Banking Branch, Kakrail, and is situated at 82, Kakraii, Ramna, Dhaka. Prominent Islami Banker Mr. M. Azizul Huq has joined the Bank as its Islamic Banking Consultant. A dedicated team of experienced Islamic bankers is working under his active guidance both at head office and branch level. A competent Shariah Council consisting of Islamic scholars, Ulema, Fukaha and Islamic bankers headed by Mr. Shah Abdul Hannan, a prominent Islamic scholar and former Secretary, Government of Bangladesh has also been formed to guide the Islamic banking affairs. Board of directors as well as management of the bank are very much interested to promote Islamic banking system in the bank aiming at opening more Islamic branches in the near future. AB Bank has already obtained membership of Islamic Banks Consultative Forum (IBCF) and Central Shariah Board for Islamic Banks of Bangladesh. The goals and objectives of Islamic banking Wing are as under: To facilitate the Islamic banking system in the country To create new entrepreneurs and to arrange required finance for them To play effective role for socio economic development of the country To give assistance in launching welfare oriented economic system under Islamic values Under this wing AB Bank extends the following Islamic banking services: Deposit services Investment services Under Deposit services the following services are being rendered: Mudaraba Savings Account Mudaraba Short Noticed Account ' . Mudaraba Term Deposit Account (with different terms) Mudaraba Monthly Profit Account Al-Wadiah Current Deposit Account . . . . Mudaraba Deposit Pension Scheme Besides Mudaraba Hajj Deposit Scheme and some other schemes are under process. Investment Services AB Bank Islmic Banking Wing provides investment facilities for project finance, working capital finance, SME finance, consumer / retail baking finance etc. under following modes: .''.' Hire-Purchase under Shirkatul Melk (HPSM): Under this mode the Bank and the client procure asset such as machinery, land , car etc. on equity

participation basis. The Bank rents out its portion of assets to the client for a certain period. The client pays the rental with a part of principal amount on monthly / quarterly basis. The client gets its proportionate ownership with the payment of monthly / quarterly installments. On maturity, total ownership of the assets automatically goes to the client as and when final payment of the account is made. Ijara or Leasing: It is more or less like the HPSM. In this case equity participation may or may not exist. Ownership of the asset is not automatically transferred to the client with the payments of installments. On maturity, the bank transfers the ownership to the client on payment of certain transfer fees. Bai-Muajjal / Bai-Murabaha: These modes are applicable for working capital finance. Under these schemes bank purchases goods / raw materials as per requirement of the client. In case of Bai-Muajjal bank receives the sales proceed on deferred payment basis. On the other hand in case of Bai-Murabaha Bank receives the sale price at the time of delivery of the goods / raw materials. Before handing over the goods / raw materials the bank generally keeps the same in its custody under pledge. Musharaka : Under this mode the Bank and clients jointly participate in a project, in a scheme or project. Profit is shared between the Bank & the concerned client as per pre-agreed ratio. On the other hand loss is shared according to capital ratio. Mudaraba: Under this mode bank finances the scheme as a Shaheb-AIMaal (owner of the capital). Profit is shared between the two sides as per preagreed ratio. Sector of Investment: Islamic Banking Wing of the bank finances in all sectors i.e., Industry, business, Agriculture, Real Estate etc. if purpose of the investment is permissible under Islamic Shariah.

Limit of Investment: Investment is offered to the extent of single borrower exposure limit as fixed by the Bangladesh Bank from time to time. Foreign Trade: Islamic Banking Wing provides the following services at its foreign trade desks: . Opening of LCs Post -Import Finance Export bill purchase and negotiation Pre-shipment financing etc. AB Bank Islamic Banking Wing has been continuously trying to expand it's service horizon keeping the necessity of valued clients in view and upholding the principle of Islamic Shariah.

Deposit Scheme New Products May 29, 2008 Ogrim Munafa Patra Let your money grow with us. AB Bank Ogrim Munafa Patra (OMP) allows you to maximise growth potential through this unique certificate. How does the OMP work? A depositor may purchase an OMP by depositing the discounted value of the principal sum: For example, for purchasing a Receipt for Tk. 100,000 with a maturity of 12 months (at 12% interest rate) the depositor will have to pay Tk 89,286/- for purchasing the OMP certificate. Who can open an OMP? Any individual, business organization and institution. How much does one have to invest? Simply a minimum of Tk 25,0007What is the tenure of the OMPs? OMPs shall be available for three, six and twelve months maturity tenures. What is the rate of interest ? : . . ; . 12 percent. Govt tax and duties are applicable. Can one obtain loan against OMP? Yes. Loan/Overdraft facility up to 90% of the deposited amount will be available. '. How does, one approach AB Bank to purchase OMP? Loan facilities will be available at any of the 73 branches of AB Bank. For details, please contact your nearest AB Bank branch. I Ogrim Mimsfo Pjtra I May 29, 2008 '.'.:, Be a millionaire in 3 years The dream of becoming a millionaire is no longer a distant one. You can actually become a millionaire, that too within a space of three to six years, by opening an AB Bank Millionaire Scheme Account ( MSA). How does this MSA work? Monthly deposit of instalments. At the end of the respective term, total savings with interest, after deduction of Govt tax and duties, will amount to One million Taka. Who can open an MSA? Any individual, business organization or institution can open an MSA. , What is the tenure of the MSA? ' MSAs can be opened for three, four, five, or six-year terms. What is the annual interest rate for MSA? -millionaire in 3 years * " Interest Rate ;-<:- - -'i;i

12.00% 12.00% 11.50% 11.50% Tenor (Years) 3 4 ./ 5; 6 Monthly Savings Gross Return Income Tax (Currently 10%) 23.602/ 1, 016,71 17- 16,704716,7667 1,021,748712,8367 1,025,586721,698725,5437-

10,1387 : :, 30,01 1,030,0847- .. 51'. , Net Return 1,000,007/-i,000,0507- ; 1,000,044/-1,000,070/Are loan facilities available against MSA? Yes. Loan/Overdraft facility up to 90% of the deposited amount will be available.

Troimashik Munafa Hishab It is now time to make your cash work for you. At AB Bank, our attractive interest rates let you maximise every ft r+ i Ra " Taka you put in. So, what are you waiting for? We invite you to participate in our Troimashik Munafa Hishab Quarterly Basis (TMH) and optimize your cash. Deposit Scheme How does TMH work? It has the character of a fixed deposit account. Who can open a TMH? Any individual, business organization or institution can open a TMH. What is the tenure of the TMH? Three years What is the annual rate of interest of TMH? Currently 12 percent. Govt tax and duties are applicable. At what frequency interest is given? Interest will be paid every three months from the date of opening of the account. . innn.mfciirr How much does one have to invest? Simply a minimum of Tk 25,000.00. There is no upper limit! Is TMH prematurely redeemable ? Yes. If withdrawn prematurely the following will be applicable: Time of withdrawal Rate of interest Within six months Nil Between six and twelve months . Prevailing Savings Bank Rate .. Second Year 9% ..:/'.''-../..',, ThirdYear 10% \/:;;:, /..:'':; -"" -''.; Is there a need to manage quarterly interest coupons? No. Interest will be credited automatically to the designated account. Can one obtain a loan against TMH? Yes. Loan/Overdraft facility up to 90% of the deposited amount will be available.