Annual Report 2009

Agrani Bank Bhaban 9D Dilkusha Commercial Area, Dhaka-1000, Bangladesh www.agranibank.
org
Agrani Bank Limited
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TABLE OF CONTENTS
PAGE NO. Corporate Profile Letter of Transmittal Notice of the Third Annual General Meeting Our Vision Our Mission Our Motto Our Values Our Strategic Objectives Our Ethical Standards Board of Directors Audit Committee Board of Trustees of Agrani Bank Limited Employees Provident Fund Trust Auditors Legal Consultant Income Tax Advisor and Credit Rating Company Management Team Five Years Performance at a Glance Graphical presentation of Performance Chairmans Message Stakeholders' Information Shareholders' Information a. Distribution of Shares b. Shares held by Directors c. Annual General Meeting d. Dividend Distribution Financial Highlights Key Ratios Graphical Presentation of Key Financial Information Maintaining Capital Adequacy Value Added Statement Products and Services Directors Report to the Shareholders Global Economic Scenario Bangladesh Economic Scenario a. Agriculture b. Industry c. Services d. Investment e. Savings f. Monetary Development g. Balance of Payment h. Export i. Import j. Foreign Remittances k. Foreign Assistance l. Economic Prospect in near future Emergence of Agrani Bank Limited Progress Achieved in 2009 Capital Structure Funding Structure Asset Portfolio
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Business Performance a. b. c. d. e. f. g. h. i. j. k. l. m. n. o. p. q. r. Financial a. b. c. d. e. f. g. h. i. j. k. Deposits Assets Quality International Trade Import-Export Business Foreign Remittance Business Treasury Operation Loans and Advances Industrial Credit Credit Lines Syndication Loan SME and Micro Credits Agriculture and Rural Credit Loan Classification and Provisioning Recovery of Non-performing Loans Merchant Banking Unit Foreign Correspondents Help Desk Branch Expansion Performance Total Operating Income Total Operating Expenditure Net Interest Income Net Profit Appropriation of Profit Capital Adequacy Ratio Guarantee Business Investment Merchant Banking Unit Profitability Foreign Correspondents
Automation and Modernization a. b. c. d. e. f. g. Business Focus Planned and Increased Use of ICT Branch Computerization On-line Banking Website ATM SWIFT Risk Management
a. Focus b. Credit Risk c. Asset Liability Management Risk d. Foreign Exchange Management Risk e. Internal Control and Compliance Risk f. Money Laundering Risk g. Credit Rating h. Reputation risk i. Liquidity risk j. Operational risk k. Market risk Implementation of Basel II Outlook for 2010
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Corporate Governance Corporate Social Responsibility Valued customer Shareholders Employees Business friends Environment Regulators Community Human Resource Management and Development Organogram Human resource Planning- Recruitment, Promotion & Departure Skill of the executives Health and safety program Development and Training Training Performance for the Year 2009 Employee Motivation Budget for training Contribution to National Exchequer Contribution to National Economy Appointment of Statutory Auditors Annual General Meeting Acknowledgements Corporate Governance Board Structure and Its committee Meetings of the Board During 2009 Independent Directors Chairman of the Board and Managing Director & CEO Role of the Board of Directors Internal Control Compliance Business Risk Management Changes in the Board of Directors Board Audit Committee Role of Audit Committee Meetings of Audit Committee During 2009 Role and Function of Audit & Inspection Division Directors Statement of Responsibilities Report of the Audit Committee Role of the Committee Composition of the Committee Meetings Activities During the Year Acknowledgements Compliance with Bangladesh Bank's Circulars
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CORPORATE PROFILE
(As on 31.12.2009)
Name of the Company Chairman Managing Director & CEO Company Secretary Legal Status Genesis : : : : : : Agrani Bank Limited Khondoker Bazlul Hoque PhD. Syed Abu Naser Bukhtear Ahmed, B.Sc., MBA Md. Ekramul Hakim Public Limited Company Agrani Bank Limited has been incorporated on 17 May 2007 and has taken over the business, assets, liabilities, rights and obligations of Agrani Bank with effect from 1 July 2007. Agrani Bank, which initially emerged as a Nationalised Commercial Bank (NCB) in 1972, following The Bangladesh Banks (Nationalisation) Order, 1972 (President's Order No. 26 of 1972), has now become a State Owned Commercial Bank (SCB) through a vendor's agreement dated 15 November 2007. Date of Incorporation Registered Office Authorised Capital Paid up Capital Reserve & Retained Earnings Credit Rating by CRISL : : : : : 17 May 2007 9D Dilkusha Commercial Area, Dhaka-1000, Bangladesh Tk. 800 Crore Tk. 497 Crore Tk. 420 Crore Particulars Surveillance Rating 2008 : (As Government Supported Entity) Surveillance Rating 2008 (As State Owned Commercial Bank) Outlook Date of Rating Declaration Number of Employees Number of Branches Number of Subsidiary Companies Phone-PABX Fax SWIFT AT H.O. ID Website E-mail : : : : : : : : : 11,443 867 02 +88-02-9566153-54, +88-02-9566160-69, +88-02-9566074-75 +88-02-9562346, +88-02-9563662+88-02-9563658, AGBKBDDH www.agranibank.org agrani@agranibank.org info@agranibank.org Positive 08-11-2009 AST- 2 Long Term AAA ST-1 Short Term
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LETTER OF TRANSMITTAL
To 1. All shareholders 2. Registrar of Joint Stock Companies & Firms 3. Securities and Exchange Commission Dhaka.
Sub:
Annual Report for the year ended 31 December 2009.
Dear Sir (s)
We are pleased to enclose herewith a copy of the Annual Report together with the Audited Financial Statements of Agrani Bank Limited and its Subsidiaries - Agrani Exchange House Private Limited, Singapore and Agrani Remittance House SDN BHD, Malaysia for your kind information and record.
Yours sincerely,
Syed Abu Naser Bukhtear Ahmed, B.Sc., MBA. Managing Director & CEO.
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NOTICE OF THE THIRD ANNUAL GENERAL MEETING
Notice is hereby given to all Shareholders of Agrani Bank Limited that the Third Annual General Meeting of the Company will be held on Thursday, 29 April 2010 at 7:00 p.m. in the Bakul, Dhaka Sheraton Hotel to transact the following business and adopt necessary resolutions: AGENDA 1. 2. To confirm the minutes of the 2nd Annual General Meeting held on 17 August 2009. To receive, consider and adopt the Directors' Report and Audited Financial Statements of the Bank for the year ended 31 December 2009 together with the Auditors' Report thereon. 3. To approve 10% stock dividend (i.e. 1 bonus share for every 10 ordinary shares) for the year ended 31 December 2009 as recommended by the Board of Directors. 4. 5. 6. 7. To elect/re-elect Directors. To appoint Auditors of the Bank for the term 2010 until the next AGM and to fix up their remuneration. To accord approval of enhancement of director's fees. To transact any other related business with the permission of the Chair.
Dated : 08 April 2010
By Order of the Board of Directors
Md. Ekramul Hakim Company Secretary
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OUR VISION
To level become of a leading bank of and Bangladesh operating at international efficiency, quality customer service.
OUR MISSION
We operate ethically and fairly within the stringent framework set by our regulators. We will go fusing ideas and lessons from best practice to explore new avenues to stay stronger and more efficient and competitive. We will apply information and communication technology for the benefit of our customers and employees. We will invest to strengthen the future of the Bank.
OUR MOTTO
To adopt and adapt modern approaches to stand supreme in the banking arena of Bangladesh.
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OUR VALUES
We believe in integrity, transparency and accountability, and also value professionalism that will provide a high standard of service to all our customers and stakeholders.
OUR STRATEGIC OBJECTIVES
Winning at least 6 per cent share of deposits and 4.5 per cent share of loans and advances of Bangladeshi market. Gaining competitive advantages by lowering overall cost compared to that of competitors. Overtaking competitors by providing quality customer service. Achieving technological leadership among the peer group. Strengthening the Banks brand name appeal. Contributing towards the economic well-being of the country by focusing particularly on SME and agricultural sectors. Strengthening research capability for
innovative products.
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OUR ETHICAL STANDARDS

1. Be Trustful: We belive in mutual trust and trust
our customers in a way they can trust us.
2.
Keep
An
Open
Mind:
For
continuous
improvement of our bank we keep our minds open to new ideas. We seek opinions and feedback from both customers and team members through which our bank will continue to grow.
3.
Meet
Obligations:
Regardless
of
th e
circumstances, we do everything to gain the trust and confidence of customers and clients by honoring our commitments and obligations.
4. Be Transparent: We are transparent in our

dealings with customers and all stakeholders. We reevaluate all print materials including advertising, brochures, and other business documents making sure that they are clear, precise and professional
5. Be involved with the Community: We remain

involved in community-related issues and activities, thereby demonstrating that our business is a responsible community contributor.
6. Be Respectful: We treat all stakeholders with

utmost respect and courtesy regardless of differences, positions, titles, ages, or other types of distinctions.
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BOARD OF DIRECTORS
(As on 31.12.2009)
Khondoker Bazlul Hoque Ph D. Chairman
Shekhar Dutta Ranjit Kumar Chakraborty Director Director
Nagibul Islam Dipu Director
Engineer Md. Abdus Sabur Director
Barrister Zakir Ahammad Director
Sahzada Mohiuddin Director
Abduz Jahir Chowdhury (Sufian )Director
K.M.N. Manjurul Hoque Lablu Director
A.K. Gulam Kibria, FCA Director
Luna Shamsuddoha Director
Syed Bazlul Karim, BPM Director
Syed Abu Naser Bukhtear Ahmed, B.Sc, MBA Managing Director & CEO
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Board of Directors
(As on 31.12.2009)
Chairman Khondoker Bazlul Hoque, Ph D. Professor & Chairman Department of International Business University of Dhaka
Directors
Ranjit Kumar Chakraborty Additional Secretary and Project Director, Deepening MTBF and Strengthening Financial Accountability Project, Finance Division, Ministry of Finance Government of the Peoples Republic of Bangladesh
Shekhar Dutta Author & Columnist and Secretary Moni Singh-Farhad Memorial Trust Nagibul Islam Dipu Managing Director Polac Real Estate Limited Chairman Polac Paints & Chemical Co. Ltd. Proprietor : Khan Brothers, 94/1, Saratgupta Road, Narinda, Dhaka Engineer Md. Abdus Sabur Director National Design & Construction Limited 4 Motijheel C/A (2nd Floor), Dhaka
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Barrister Zakir Ahammad Chairman Indepth News of Bangladesh (INB) 13 Topkhana Road, Dhaka Sahzada Mohiuddin Proprietor M/S Arshi Enterprise 152/2B, Green Road (3rd Floor), Dhaka. Abduz Jahir Chowdhury (Sufian) Social Worker K.M.N. Manjurul Hoque Lablu Chief Editor & Managing Director Global News Agency 33 Topkhana Road (1st Floor), Shabuj Chaya, Dhaka. A.K. Gulam Kibria, FCA Senior Partner G.Kibria & Co., Chartered Accountants 24-25 Dilkusha C/A (5th Floor), Dhaka. Luna Shamsuddoha Chairman Dohatech New Media 43 Purana Paltan Line, Dhaka. Syed Bazlul Karim, BPM Rtd. AIG Chairman : 1. CBA Trading Ltd. Bashundhara Market, Suit No. 2,3,4, Level-5, Block "B" Bashundhara, Dhaka. 2. Agrobangla Poultry & Fish Feed Ltd. Joydebpur, Gazipur. Director Advisor : : Mohona T.V. Ltd., Mohona Bhaban, Mirpur, Section-11, Dhaka. Kingshuk Multi-purpose Co-operative Society. Corporate Office : Mirpur, Dhaka.
Managing Director & CEO Syed Abu Naser Bukhtear Ahmed, B.Sc., MBA
Company Secretary Md. Ekramul Hakim
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Audit Committee
(As on 31.12.2009)
. . .
Board of Trustees of Agrani Bank Limited Employees Provident Fund Trust

(As on 31.12.2009)
Ranjit Kumar Chakraborty Chairman & Director of the Board . . . Engineer Md. Abdus Sabur Member & Director of the Board
K.M.N. Manjurul Hoque Lablu Chairman & Director of the Board
Syed Abu Naser Bukhtear Ahmed, B.Sc, MBA . . . Member & Managing Director & CEO
A.K. Gulam Kibria, FCA Member & Director of the Board . . .
Syed Abdul Hamid, B.Com (Hons),M.Com, Chartered Accountant Member & Deputy Managing Director
A. K. M. Mujibur Rahman Member & General Manager
Md. Nazrul Islam Farazi . Member Secretary & Deputy General Manager
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Auditors
A. Qasem & Co. Chartered Accountants Gulshan Pink City Suit 1-3, Level 07 Plot No. 15, Road No. 103 Gulshan Avenue, Dhaka. Tel: 8837285-7 Zoha Zaman Kabir Rashid & Co. Chartered Accountants Dhaka Chamber Bhaban 65-66, Motijheel C/A Room No. 504,Dhaka.Tel: 9564178-9, 9564755
Legal Consultant
Mr. Shahjahan Majumder
Income Tax Advisor

M/s. L.R. Bhuiyan and Associate 6 Bijoy Nagar (2nd Floor) Dhaka. Tel: 9330736
Credit Rating Company

Credit Rating Information and Service Limited (CRISL) Nakshi Homes (4th floor), 6/1A, Segun Bagicha, Dhaka. Tel: 7173700-1, 9565780
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Management Team
MANAGING DIRECTOR & CEO Syed Abu Naser Bukhtear Ahmed, B.Sc., MBA DEPUTY MANAGING DIRECTORS Syed Abdul Hamid, B.Com(Hons),M.Com, Chartered Accountant.
Md. Fayekuzzaman Dr. Md. Nurul Alam Talukder
GENERAL MANAGERS Md. Mofazzal Husain
Md. Monir Uddin
Md. Enamul Hoque
Md. Obayed Ullah Al Masud
Omar Farooque
Mohammad Shams-Ul Islam
A. K. M. Mujibur Rahman
Md. Khurshed Hossain
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DEPUTY GENERAL MANAGERS

Md. Abdur Rashid Shamsul Hossain Md. Delwar Hossain Md. Abul Kashem Sikder A. S. M. Waliullah Mohammad Jalaluddin Mohammad Zakaria Tazrina Ferdausi Bhanu Roy Chowdhury Md. Nurul Haque Md. Mojammel Hoque Md. Golam Mostafa Md. Aminul Islam Mizanur Rahman Khan Haradhan Chandra Das Parimal Chandra Goswami Aruna Rani Roy Akand Md. Golam Mostafa Md. Nuruzzaman Md. Emdadul Haque Md. Aminul Islam Md. Shahidullah Md. Nurul Amin Khan Bhupati Ranjan Biswas Sahida Akhtar Md. Ekramul Hakim Md. Nazrul Islam Farazi A. A. M. Shahjahan Tarak Chandra Karmaker A. K. M. Nazrul Islam Quazi Jahangir Alam Hamidur Rahman Taskina Yasmin Kalpana Saha Md. Kamruzzaman Md. Moshiur Ali Md. Serajul Islam Borhanuddin Farook Ahmed Aminul Hoque Mollah A.B.M. Rafiqul Islam Md. Rafiqul Islam Md. Nazrul Islam Shanti Ranjan Mondal Md. Rezaul Karim Badal Chandra Dey Farook Hossain Abu Saleh Md. Nurul Islam Md. Abul Hossain Talukder Md. Afzalur Rahman Md. Aslam Miah Monwar Rafiqul Alam Md. Abdus Sukur Nasreen Jahan A.B.M. Tofazzel Hossain Firoz Ahmed Kazi Alamgir Md. Moazzem Hossain Nurul Huda Dilip kumar Maitra Mobarak Hossain Md. Yusuf Ali Md. Ali Hossain Prodhania Md. Mustafa kamal Bhuiya Shahida Khatun Md. Abu Siddique Shamsuzzaman Pankaj Roy Chowdhury Md. Nazrul Islam Md. Ruhul Amin Kazi Shahidul Islam Md. Rafiqul Alam Md. Delowar Hossain Md. Showket Islam Md. Nurul Amin Md. Harmuz Miah
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Photos of top management team
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FIVE YEARS' PERFORMANCE AT A GLANCE

(Amount in crore taka) Particulars Balance Sheet Authorized Capital Paid-up Capital Reserves Revaluation Reserve on Investment in Govt. Securities Retained Profit (Loss) Total Equity Total Deposits Core deposit: i. Savings deposit ii. Deposit Pension Scheme iii. Agrani Bank Pension Scheme iv. Agrani Bank Bishesh Shanchay Scheme Long Term Liability Total Loans and Advances Interest Suspense and Penal Interest Provision for Loans and Advances Net Loans and Advances Investments Fixed Assets (Property, Plant and Equipment) Total Assets Net Current Asset Operating Results Total Income Total Expenditure Provision during the year Operating Profit before amortization, provision & tax Net Profit (Loss) after amortization, provision & tax Earnings per share Cost of Fund in percentage Return on Equity in percentage Return on Assets in percentage Net Interest Margin in percentage Average Yield on Loan in percent. (Performing Loan) Loans as percentage of Deposit (A. D. Ratio) Total Classified Loans to Total loans in percentage Net Classified loans to Net loans in percentage (including staff loan) 1,637 992 186 644 111 22.31 6.86 12.09 0.52 4.61 11.04 73.51 19.42 4.79 1,498 865 211 633 265 106.52 6.65 41.28 1.41 4.24 10.38 77.21 22.48 7.61 1,368 842 222 526 86 34.56 6.68 29.55 0.92 3.69 10.35 87.18 26.83 8.82 1,233 875 29 358 194 ---6.84 1.26 2.96 9.53 82.12 26.27 6.61 1,060 846 374 214 163 ----6.95 1.05 1.73 7.94 75.98 28.31 5.51 800 497 139 207 74 917 16,628 7,357 6,966 125 136 130 15,964 12,224 691 1,187 10,346 4,090 288 21,179 4,798 800 248 74 43 277 642 14,681 7,209 6,486 127 567 29 3,980 11,336 672 1,153 9,511 2,933 253 18,732 (6,854) 10,230 11,849 950 1,390 9,509 2,190 248 18,628 356 11,006 10,587 892 1,337 8,358 2,231 41 15,408 2,130 6,955 9,940 959 1,440 7,541 2,433 44 15,553 2,379 800 248 16 70 334 13,592 7,129 6,001 124 1,004 800 248 15 15 (1,810) (1,532) 12,892 7,491 5,785 113 1,593 800 248 15 19 (2,008) (1,726) 13,084 7,731 5,201 114 2,416 2009 2008 2007 2006 2005
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(Amount in crore taka) Particulars Other Key Operational Data Forex Business: i. Imports: ii. Exports: iii. Remittances: Guarantee Business Number of Branches Number of Employees Number of Correspondent Banks with NOSTRO A/c. Number of Foreign Correspondents Number of Remittance Correspondents Subsidiaries 17,801 7,753 4,461 5,587 160 867 11,443 39 383 33 2 21,175 10,952 4,954 5,269 112 867 10,988 39 383 29 2 20,516 11,343 4,892 4,281 105 866 11,345 39 416 28 2 20,693 11,592 5,171 3,930 108 866 11,793 38 416 25 2 12,747 5,119 4,171 3,457 118 864 11,938 41 410 25 1 2009 2008 2007 2006 2005
Major Achievements in 2009
1. 2. 3.
Capital Surplus increased toTk. 73 crore in 2009 from deficit of Tk. 67 crore in 2008. Classified Loan reduced to Tk. 2,374 crore in 2009 from Tk. 2,549 crore in 2008. Paid-up capital increased to Tk. 497 crore from Tk. 248 crore in 2008.
4. 5. 6.
Net Interest Margin (NIM) improved by 0.37% Capital Adequacy Ratio increased from 9.16% in 2008 to 10.80% in 2009. Liquidity ratios increased significantly. Current ratio increased from 0.51% in 2008 to 2.12% in 2009. Cash flow liquidity ratio increased from 0.08% in 2008 to 0.33% in 2009.
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Graphical Presentation of performance
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CHAIRMANS MESSAGE
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Photo of the Chairman
CHAIRMANS MESSAGE
Bismillahir Rahmanir Rahim Respected Shareholders, Assalamu Alaikum,
Pqvigvbi evYx
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I feel honored to extend you warm welcome, to the 3rd Annual General Meeting of the Bank on behalf of the Board of Directors of Agrani Bank Limited and on my personal behalf. I also feel delighted to have the opportunity to place before you a resume of major milestones that we achieved through our banking operations in 2009.
However, at the very beginning, I recall with profound respect, the greatest Bangalee of all times Bangabandhu Sheikh Mujibur Rahman, the Father of the nation, at whose clarion call we fought a series of heroic struggles and a great liberation war and earned the dignity of living as an independent nation. I aslo wish to pay my respectful homage to the valiant heroes of our great Liberation War, who made supreme sacrifices by embracing martyrdom for the independence of our motherland. We are meeting at a time when the global economy has started recovering, albeit slowly, from the unprecedented crisis arising from the economic meltdown mainly triggered by the turmoil in financial sector. The contagion of the crisis first spread to the developed economies and then engulfed the countries across the world. Its impact on our economy though not quite severe because of our low integration with the global economy, several important sectors of the economy like import, export and remittance were subjected to a
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quite significant degree of vulnerability. However, prudent policy response from the Government helped meet the challenges as well as avert the potential risks that the economy confronted with at that time. At this critical juncture, Agrani Bank Limited has been able to expand its business, and successfully face the challenge of fulfilling the expectation of the stakeholders in most of the spheres of its operation. All these have been possible because of continued support and cooperation from our valued customers, patrons, wellwishers, Government of Bangladesh, Bangladesh Bank and shareholders. I sincerely convey my heartiest gratitude to all of them. It is a matter of great satisfaction for all of us that during 2009 the Bank has been able to place itself on a much firmer footing showing marked improvement in key performance indicators.
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Let me now say a few words about the bank's reforms program as part of the long-term financial sector reform and modernization plan of the Government. As part of this plan, the Bank was incorporated as a Public Limited Company on May 17, 2007 and acquired all assets, liabilities, rights and obligations of the former Agrani Bank. This has offered us a new opportunity to shape our own future with greater autonomy and flexibility.
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In 2009, the Bank continued to grow steadily in all major areas. Deposits increased by 13.26 per cent in 2009 and reached to Tk. 16,628 crore from Tk. 14,682 crore in 2008. Total loans and advances in 2009 was TK.12,224 crore as against Tk.11,336.22 crore in 2008; a growth of 7.83 per cent over the
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previous year. The Bank's profit also continued to grow. In a period marked by the worldwide volatile economic scenario,the profit before amortization, provision and tax rose by 1.81 per cent to Tk. 644.44 crore in 2009 from Tk. 632.97 crore in 2008. As a result, capital deficit of Tk. 67.36 crore in 2008 was turned into a 73.34 crore capital surplus in 2009 even after covering capital requirement increase of Tk.113 crore. The classified loan decreased to 19.42 per cent from 22.48 per cent of the previous year, which indicates a good sign.
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In order to infuse dynamism in some key areas, the Management changes by has way brought of several welcoming expenses, controlling
ca vb c a vb KvR MwZkxjZv Avbvi Rb evsK cbv ek wKQy cksmbxq c`c Mn Y Ki| Gmei eev ga iqQ eq wbqY , AwaKZi jvfRbK Znwej y FY`vbKvix cw Zvb FY `vb Ges we`gvb wewbqvM, ` Rbkwi Drcv`bkxjZv ew KiY| evsK we`gvb Kcv iU msw Zi cwieZb Ges Zv Dbq bi Rb mviv eQievcx bvbv c Pv AevnZ wQj| nKMY c ~ ei Avwg Avbì m Avcbvì RvbvwQ h, Mv Zj z bvq eZgvb AwaKZi fvj mev cvQb| Kg ^ QZv I Revew`wnZv wbwZKiYi Dk Ges evsK cbv KZc Ges cwiPvjbv mm y vkb cw Zvi j eev cwil` Zv u ì cPv AevnZ ivLb| hme mk y vmb Pv AevnZ _vK mjv nQt FY Ab y gv`b Avbvi c Ges c`vb, FY ck vmb, wnmve msiY, m` eenvi, cbv Ges eq nvmKiY| Afi x Y w bi x v Znwej eev xb wbqb I bxwZgvjv wefvM evsjv`k evsKi Avfi AwWU KwgwU Zvì gvZveK cwiPvwjZ nQ| evWi Dci AwcZ `vwqZ `Zvi mv_ mv`b KiQ| Af ~ ei Zj y bvq AbK DbZ| evsKi ixY wbixvi gvb GLb c
redeploying its funds to more profitable areas, lending to micro finance institutions and making the workforce more productive. Throughout the year, the Bank had made concerted efforts to change and improve the corporate culture prevailing in the Bank. I am glad to inform you that our valued clients are getting better service from our bank. In order to bring transparency and accountability in managing the affairs of the Bank, the Board and the bank management have been making relentless efforts to ensure meaningful corporate governance in all spheres of banking activities, including sanction and disbursement of credit, loan administration, keeping of accounts, utilization of resources, fund management and reduction of wasteful expenditures. The Internal Audit Division has been working according to Bangladesh Bank Internal Contoll Guidelines. The Audit Committee of the Board has discharged their
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responsibilities
effectively
and
efficiently.
The
KgKZv ì `Zv ew i Rb AvjvP eQi cwil` AbKjv ckvmwbK c`c Mn Y Ki| cw kYi eev Aviv Rvi`vi Kiv nqQ| Avwg `p fve wekv m Kwi Gme c`c Mn Yi dj fwelZ evsKi KvR Aviv fvj djvdj cvIqv hve|
standard of internal audit is now much higher than what was before. A number of administrative measures have also been taken by the Board to improve efficiency and performance of the bank officials. The training facilities have been strengthened further. I strongly believe that these initiatives of the Board of Directors would yeild much better results for the Bank in the coming years. The Bank operates under the overall supervision and guidance of the Board of Directors. Efforts have been made by the Board throughout the year to ensure compliance of existing rules and regulations. Several steps have been taken by the Board during the year to update various policies and directives to the performance of the Bank and its service delivery. The Board of Directors expects that such measures would enhance the competitiveness of Agrani Bank Limited in future.
evsK cwiPvwjZ nq cwiPvjbv cwilì mvweK Zv eavb I w`Kwb`k bvq| evsKi I Mv nK mevi gvb Dbqbi Rb cwil` wewfb bxZgvjv Ges wbqgvejx cwieZb I y MvchvMx Kivi Rb ek wKQy c`c Mn Y Kib| h wewfb bxwZgvjv, wewagvjv Ges wb`k vejx cwieZb I b cwiPvjbv cwil` ek wKQy c`c Mn Y Kib cwiea hvZ Mv nK mev DbZ Zi nq| cwiPvjbv cwil` gb Kib x evsK wjwgUW Aviv GZ AvMvgx w`b AMY cw ZhvwMZvcY ~ cwiek KvR KiZ mg_ ne| Avgiv gb Kwi AMY x evsK wjwgUW `ki AbZg iU wmwURb| AZGe Kcv iU mvgvwRK `vwqZ Kcv cvjbi mv_ m KvR AskMn Y Kiv Avgvì bwZK iU mvkvj imcwwewjwUi Ask wnme `vwqZ| Kcv Avgiv mgvR Ges Kg wbivc` cwiek iv Ges kl mevi Rb mgvb m y hvM bv i x - c i y l, RvwZ-eY wbwe wbwZ KiZ AsMxKvie| Avgiv cwieki wZKviK Kvb cK A_ hvMvbi wei| AvMvgx w`b Avgiv Aviv ekx mgvRwnZKi KvR Ki hve| Avgiv `k, wekl Ki Mv gvj wkvi gvbvbqb Ges mgvRi mwy eavewZì `Zv Dbq b AviI mwqfve AskMn Yi Rb D`vM wbqwQ|
We believe that Agrani Bank Limited is a corporate citizen of the country. It is, therefore, our moral duty to take part in such activities as they relate to our Corporate Social Responsibilities (CSR). We pledge to accelerate CSR activities to ensure safe and welcoming ambience in our society and workplace, provide equal opportunity and fair treatment in terms of gender, ethnic and other minorities' career development. We oppose financing trade and business having potentially harmful impacts on environment. development sector such as We have also of planned for more active participation in the social improvement standard of education in the country, particularly in the rural areas, skill development activities for the disadvantaged section of the society. In order to maintain stability in business under
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competitive environment and to face the challenges of economic recession, Agrani Bank Limited continued its efforts to increase the credit flow to corporate houses in the priority sectors. In line with government strategy, apart from traditional banking, the Bank continued SME financing in collaboration with different funding agencies, both national and international, so that thousands of rural and urban poor improve their living by overcoming poverty. Upto 2009, the Bank financed 14 programmes in SME and micro credit sectors and 54 programmes in agriculture and rural sector.
cw ZhvwMZvg~jK cwiek eemvq ww ZkxjZv eRvq iL A_ bwZK g`v gvKvwejvq AMY x evsK wjwgUW LvZ wPwZ Ki `ki Kcv i U M v nKì AMv waKvicv u Q `qvi KvR AevnZ iLQ| miKvwi KvQ FY c bxwZi AvjvK AMY x evsK mvaviY evswKs KvR Kivi z wk A_v qb KiQ| G KvR m m gvSvwi I ` `kx-we`kx wewfb dvws GRwi mnvqZvI bqv nQ _K gwy hvZ kni Ges Mvgi nvRvi nvRvi Mixe `vwi` cvq| 2009 mvj ch evsK gvBv-wWUi Aaxb gxY LvZi 54wU Kgm w~ Pi Aaxb 14wU Kgm w~ P Kw l Ges Mv FY c`vb KiQ|
I would like to take the opportunity to thank all the Directors of the Bank for their unflinching support and valuable contribution in attaining the goals of the Bank during the year under review. I also thank the valued shareholders of the Bank for the trust and confidence. My special thanks are to our Customers, Depositors, Patrons, Well-wishers, Bangladesh Bank, Government of Bangladesh and all others for extending necessary support, cooperation and assistance. I would also like to put on record my thanks and appreciation to all of our executives and employees for their untiring efforts without which Agrani Bank Limited would not have become one of the most preferred financial service providers in the country.
AvjvP eQi evsKi eemvwqK jvf ARb evsKi cwiPvjKe ` h mnvqZv w`qQb Ges h Ae`vb Zv u iv iLQb Zvi Rb Avwg ZvìK RvbvB abev`| Avgvì Dci Avv ivi Rb Avwg evsKi kqvinvviì abev` RvbvB| c qvRbxq mvnvh, mnhvwMZv I mg_bi Rb Avwg Avgvì Mv nK, AvgvbZKvix, ccvlK, fv_x , evsjv`k evsK Ges evsjv`k miKviK weklfve abev` RvbvwQ| vixMYi Ae`vb evsKi AMh vvq KgKZv I KgP x evsK AZj z bxq| Zv u ì wbijm Kgc Pv Qvov AMY wjwgUW `ki AbZg mevc` vbKvix evsK nZ cviZ bv| Avwg Zv u ìK abev` RvbvB|
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Finally, I would like to add that in the changed political landscape characterized by the present Governments commitment to bring about greater welfare for the community at large, the expectation of the stakeholders has gone high. All our efforts are, therefore, directed towards meeting this expectation. We firmly believe that our efforts will add value to the steps towards executing the 'Charter for change' as set out by the present Government of Prime Minister Sheikh Hasina to realize its vision for establishing Digital Bangladesh.
cwikl Avwg DjL KiZ PvB h, cwiewZZ ivRbwZK cwiek hLvb eZgvb miKvi mgvRi me ii gvb y li KjvY eq Avbvi cw Zk wZ evevqb KiQ mLvb vkvI ew cqQ| GKviY Avgvì Knvviì cZ ~ Y Avgvì mKj cqvm wbqvwRZ Avgiv G cZvkv ci iLwQ| Avgiv `p fve wekv m Kwi, Avgvì G cq vm kL nvwmbv miKvii w`be`ji `ki eZgvb cavbgx mb` AxKviKZ wWwRUvj evsjv`k Movi wfkbK evevqbi c_ GwMq wbZ Ae`vb ivLe|
May the Almighty Allah bless us all in our future endeavors.
Avgvì AvMvgxi mKj cqvm mek wgvb Avjv n& mnvq n v b| L`Kvi eRjyj nK, wcGBPwW. Pqvigvb cwiPvjbv cwil`
Khondoker Bazlul Hoque, Ph D. Chairman The Board of Directors
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STAKEHOLDERS' INFORMATION
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SHAREHOLDERS INFORMATION
a. Distribution of Shares in 2009

Number of Shares Particulars 31 December 2009 Government of Bangladesh Directors General Public Total 496,83,988 12 49,684,000 31 December 2008 248,41,990 10 24,842,000
b. Shares held by Directors as on 31 December 2009
Starting Position Sl# Particulars Status Date 1 2 3 4 5 6 7 8 9 10 11 12 Khondoker Bazlul Hoque Ph D. Mr. Ranjit Kumar Chakraborty Mr. Shekhar Dutta Mr. Nagibul Islam Dipu Engineer Md. Abdus Sabur Barrister Zakir Ahammad Mr. Sahzada Mohiuddin Mr. Abduz Jahir Chowdhury (Sufian) Mr. K.M.N. Manjurul Hoque Lablu Mr. A.K. Gulam Kibria, FCA Ms. Luna Shamsuddoha Mr. Syed Bazlul Karim, BPM Chairman Director Director Director Director Director Director Director Director Director Director Director 16.09.09 13.12.06 09.09.09 09.09.09 09.09.09 09.09.09 09.09.09 14.09.09 14.09.09 24.09.09 24.09.09 22.10.09 Share 1 1 1 1 1 1 1 1 1 1 1 1
Closing Position 1 1 1 1 1 1 1 1 1 1 1 1
Change
0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
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c. Annual General Meetings

The first annual general meeting was held on 14 August 2008.
Photo with caption of First AGM

First AGM on in Progress- 14 August 2008
The second annual general meeting was held on 17 August 2009.
Photo with caption of Second AGM

Second AGM on in Progress- 17 August 2009
The third annual general meeting will be held on 29 April 2010.
Photo with caption of Signing Accounts by Directors

Signing of accounts by Directors -28 March, 2010
d. Dividend Distribution
The Bank declared and distributed 100% stock dividend (i.e. 1 bonus share for every 1 share) for the year 2008 out of the accumulated profit as on 31 December 2008. The Board of the Directors recommends 10% Stock Dividend (i.e. 1 bonus share for every 10 shares) for the year ended 31 December 2009.
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Financial Highlights
( Amount in crore taka)
2009
2008
Change
Performance during the year

Interest revenue Interest cost Net interest revenue Income from investment Other operating revenue Total operating revenue Salary & allowances Other operating cost Total operating cost Profit before amortization, provision and tax Amortization ( valuation adjustment) Provision for loans and advances Other provision Profit before tax Provision for tax Net profit after tax 1,012.24 608.36 403.88 369.02 624.47 1028.35 305.11 78.80 383.91 644.44 132.95 90.94 94.78 325.77 214.92 110.84 954.78 524.14 430.64 185.43 543.29 973.93 271.40 69.55 340.95 632.97 132.95 185.12 25.85 289.05 24.43 264.62 6.02% 16.07% -6.21% 99.01% 14.94% 5.59% 12.42% 13.30% 12.60% 1.81% ----50.88% 266.65% 12.70% 779.74% -58.11%
At the end of the year

Paid up capital Total shareholders equity Deposits Total contingent liabilities and commitments Loans and advances Amount of classified loans Provision kept against classified loans Investments Average interest earning assets Non interest earning assets Fixed assets (Property, plant & equipment) Total assets 496.84 916.72 16,628.36 5,297.36 12,223.60 2,373.93 1,056.06 4,089.72 14,908.04 4,397.05 287.87 21,178.91 248.42 641.92 14,681.46 4,616.45 11,336.23 2,548.92 1,036.97 2,932.98 14,384.53 4,235.62 253.08 18,732.57 100.00% 42.81% 13.26% 14.75% 7.83% -6.87% 1.84% 39.44% 3.64% 3.81% 13.75% 13.06%
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Key Ratios
Sl # Particulars 2009 2008
Profitability and performance ratios

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Net profit ratio Cost to income ratio Efficiency ratio Non interest expense to Total income Asset utilization Return on assets Leverage multiplier Return on equity (before amortization, provision & tax) Return on Equity (After amortization, provision & tax) Earnings Power Non interest expenses to total assets Net non-interest income to total assets Interest margin to total assets Interest margin to earning assets Yield on earning assets Earnings per share Net asset value per share (Tk.) Total classified loan to total loans Net classified loan to net loans Cost of fund Return on investment 12.09% 70.39% 1.81% 1.14% 1.91% 2.71% 6.79% 22.31 184.51 19.42% 4.97% 6.86% 9.02% 41.28% 76.79% 1.82% 1.08% 2.30% 2.99% 6.64% 106.52 258.40 22.48% 7.61% 6.65% 6.32% 7.73% 0.52% 23.10 35.54% 8.00% 1.41% 29.18 45.03% 6.77% 60.63% 0.37 17.66% 57.75% 0.35
Liquidity and solvency ratios

1 2 3 4 5 6 7 8 Current ratio Cash flow liquidity ratio Debt to total assets ratio Long term debt to total capitalization Liquid assets to earning assets Loans & advances to deposit ratio Loans & advances to total assets ratio Provision to total loans & advances 2.12 0.33 0.96 0.12 11.56% 73.51% 57.72% 9.63% 0.51 0.08 0.97 0.25 10.24% 77.21% 60.52% 10.11%
Dividend ratios
Stock dividend 10% 100%
Capital adequacy ratios

Capital adequacy ratio I. Tier I Capital II.Tier II Capital 10.80% 7.74% 3.06% 9.16% 7.74% 1.72%
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Note: Since ABL is not a listed company, its market price per share is not available. So, P/E ratio of the Bank could not be provided.
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Maintaining Capital Adequacy

Capital adequacy symbolizes the financial strength and stability of a bank. It limits the ceiling up to which banks can expand their business in terms of risk-weighted assets. Like all commercial institutions, banks too consistently look at the way of expanding their operations by acquiring property, plant and equipment and shifting of branches to better commercial areas, in addition to mobilizing deposits, providing loans and investing in other assets. Regulatory capital requirements are therefore necessary to prevent banks from expanding beyond their ability to manage (overtrading), to improve the quality of banks, to leverage their growth and to lead to higher earnings on assets. The Bank keeps a careful check on its adequacy ratio, as will be evident from capital adequacy ratio given below:
a. Capital adequacy as per BASEL-I (Amount in Crore taka)
Particulars Total Assets (net) including Off-Balance Sheet Items (net). Total Risk Weighted Assets Minimum Required Capital (10% of Risk Weighted Assets ) For details reference may be made to note #13.7 of the audited financial statements Minimum required core capital ( 5% of RWA) Actual Capital Held Core Capital (Tier-I) Supplementary Capital (Tier-II) Total Capital surplus/(shortfall) Capital Adequacy Ratio (%): Core Capital (against standard of minimum 5%) Supplementary Capital Core Capital (Tier - I) Paid up capital Statutory Reserve General Reserve Retained Earnings Total Core Capital ( Tier-1) Supplementary Capital (Tier - II ) General Provision maintained against UC loans Provision for Off Balance Sheet Exposure Revaluation Surplus on HTM Securities @ 50% Exchange Equalization Accounts Total Supplementary Capital ( Tier-2) 114.09 52.97 103.24 10.91 281.21 115.66 6.43 5.36 10.91 138.36 496.84 138.94 0.50 73.96 710.24 248.42 73.78 0.50 276.69 599.39 459.05 991.45 710.24 281.21 73.34 10.80% 7.74% 3.06% 402.55 737.75 599.39 138.36 (67.36) 9.16% 7.44% 1.72% 2009 18,314.36 9,181.09 918.11 2008 17,755.99 8,051.07 805.11
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b. Capital adequacy as per BASEL-II (Amount in Crore taka) 2009 A. Eligible Capital : 1.Tier-1 (Core Capital ) 2.Tier-2 (Supplementary Capital) 3.Tier-3 (eligible for market risk only) 4.Total Eligible Capital (1+2+3) : 710.24 281.21 91.45
B. C D. E. F. G.
Total Risk Weighted Assets (RWA): Capital Adequacy Ratio (CAR) (A4 / B)*100 Core Capital to RWA (A1 / B)*100 Supplementary Capital to RWA (A2 / B)*100 Minimum Capital Requirement (8% of RWA) Capital Surplus (F-A)
12,052.44 8.22% 5.89% 2.33% 964.20 27.25
Eligible Capital 1.Tier-1 (Core Capital ) Paid-up Capital Statutory Reserve General Reserve Retained Earnings Sub-Total: 496.84 138.94 0.50 73.96 710.24
2.Tier-2 (Supplementary Capital) General Provision (UC) Provision for Off Balance Sheet exposure Reserve on HTM & HFT Securities @50% Balance of Exchange Equalization A/C Sub-Total 14.09 52.97 03.24 10.91 281.21
3.Tier-3 (eligible for market risk only) Short-term subordinated debt Sub-Total 4. Total Supplementary Capital(2+3) 5. Total Eligible Capital (1+4) 81.21 991.45 -
Note : For details reference may be made to note 13.8 of the audited financial statements.
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Value Added Statement

The value added statement for the Bank shows the values created and distributed among different stakeholders of the Bank. Value added by the Bank stood at Tk. 682.82 crore as of 31 December 2009 as against Tk. 576.14 crore as of 31 December 2008.
2009 Taka in crore 1,636.70 680.20 956.50 273.68 682.82 In per cent -
2008 Taka in crore 1,498.07 588.01 910.06 333.92 576.14 In per cent -
a. Income from Banking service b. Less: Cost of services & supplies c. Value added by the Banking services (a-b) d. Add: Non-Banking income e. Less: Amortization, Loan Loss Provision and Other Provisions except incentive bonus Value added ( c+d-e) Distribution of Value addition To Employees as salaries, allowances and bonus To Govt. as Income Tax To Statutory reserve To Expansion and Growth Retained profit Depreciation Deferred Tax Total :
350.11 170.00 65.15 45.70 6.94 44.92 682.82
51.27% 24.90% 9.54% 6.69% 1.02% 6.58% 100.00%
281.40 57.81 206.81 5.69 24.43 576.14
48.84% 10.03% 35.90% 0.99% 4.24% 100.00%
2 Graphs: Distribution of Value Addition
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Products and Services

a) Deposits
Current Deposits (CD) Call Deposits Savings Deposits (SB) Fixed Deposits o 3 months o 6 months o 1 year o 2 years and above Special Notice Time Deposits (SNTD) Non Residence Special Taka Account NR Investors Taka Account Agrani Bank Pension Sanchay Prokalpa (APS) Agrani Bank Bishesh Shanchay Scheme (ABS)
b) Foreign Currency Deposit Accounts

Foreign Currency Account Non Resident Foreign Currency Deposit
c) Loans & Advances

Cash Credit (Hypo) Cash Credit (Pledge) Secured Overdraft (SOD) Temporary Overdraft (TOD) Industrial Credit (IC) Inland Bills Purchased (IBP) Staff Loan Loan (Others) Housing Loan-General & Commercial Consumer Credit Loan for Overseas employment Advance Against Salary Rural & Agro Credit Small and Medium Enterprise Loan Weavers Credit Export Cash Credit Import Finance Loan Against Imported Merchandise (LIM) Loan Against Trust Receipt (LTR) Loan Against Export Development Fund (EDF) Payment against Document (PAD) Export Finance Export Cash Credit Pre-shipment credit Packing Credit Foreign Bills Purchased (FBP)
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d) Treasury

i. Primary Dealer Unit

Treasury Bills Treasury Bonds REPO Reverse REPO Import/Export Financing Custodian Services Money Market Lending
ii. Forex & Fund Management
e) Special Services i. Cash Services

ATM Services Cheque encashment Foreign Currency Inter-Branch Money Transfer SWIFT Telegraphic Transfer Issuing and Encashing Foreign Drafts Locker Service
ii. Fund Transfer

iii. Value Added Services
f) Other Services i. Letters of Credit

Letters of Credit-Sight Letters of Credit-Usance Back to Back L/C Advance Payment Guarantee Bid Bond Performance Bond Shipping Guarantee Guarantee- Others In the year 2009 the Bank introduced the following products: Merchant Banking Unit Agrani Bank Sanchay Scheme Loan for Overseas Employment Islamic Banking Unit
ii. Letters of Guarantee

g) New products and services introduced in 2009
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DIRECTORS REPORT TO THE SHAREHOLDERS
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DIRECTORS REPORT TO THE SHAREHOLDERS

Bismillahir Rahmanir Rahim Respected Shareholders Assalamu Alaikum,
kqvinvviì cw Z cwiPvjKì cw Ze`b

wemwgjv w n i i v n g v w bi i v w n g mvwbZ kqvinvvie ` Avmmvjvgy AvjvBKg y ,
On behalf of the Board of Directors I am much delighted to present the third Annual Report of Agrani Bank Limited together with the audited financial statements. In the report, Banks operational performance of 2009 compared with that of 2008 has been evaluated and analyzed within the prevailing business environment. The information and analysis may be read in conjunction with the audited financial statements presented herewith. This report presents an overview of the global economic scenario and the performance of Bangladesh economy.
cwiPvjbv cwilì c _K 2009 mvji wbixwZ wnmve xq evwlK cw Ze`b weeiYxmn AMY x evsK wjwgUWi ZZ Avcbvì mvgb Dcv cb KiZ ci Avwg AZ Avbw`Z| cw Ze`b we`gvb eemvwqK cwieki AvjvK 2008 mvji mv_ 2009 mvji cwiPvjb KgKvi Zzjbvg~jK gj ~ vqb Ges wekl Y Kiv nqQ| h mg Z_ Ges wekl Y GZ mwbewkZ nqQ Zv ckKZ Avw_K weeiYxi m wgwjq covi Rb Ab y iva RvbvB | G cw Ze`b wek A_b xwZ Ges evsjv`ki A_b xwZi mvgwMK KgK vi mvweK wPI d z U DVQ|
Global Economic Scenario

After a deep global recession, economic growth has turned positive, as a wide range of policy interventions has supported demand and reduced uncertainty and systemic risk in financial markets. Although global growth is expected to continue in positive territory in 2010, the pace of the recovery will be slow and subject to uncertainty. After falling by an estimated 2.2 percent in 2009, global output is projected to grow 2.7 and 3.2 percent in 2010 and 2011 respectively.
wek A_ bwZK cwiww Z

Zxe wekg`vi ci A_ bw Z K c e w i cwiww Z BwZevPK nqQ| wewfb aibi A_ bwZK bxwZgvjv Mn Yi dj Pvwn`v wKQU y v eoQ Ges Avw_K evRvii AwbqZv Ges Aw bw nZ Swuz K nv m cqQ | Aek AwbqZvi KviY ce w i aviv gi ne| Avkv Kiv hvQ, wek A_ bwZK ce w 2010 mvji ga v ^ fvweK ne| 2009 mvj wek A_b xwZi cew wQj 2.2 kZvsk | 2010 Ges 2011 mvj GB ce w i nvi h_vg 2.7 kZvsk I 3.2 kZvsk nZ cvi ej Abg y vb Kiv nQ|
The banking crisis that erupted in September 2008 has substantially reinforced the cyclical downturn that was already under way. Following the insolvency of a large number of banks and financial
2008 mvj h g`v `Lv `q Zv m eQiB i nqwb| Gi ce ~ eZx eQiI g`vfve wQj| evSv hvq GUv GKUv P hvi cb y ivew NUQ| gvwKb h y iv, BDivc Ges Dbq bkxj
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institutions in the United States, Europe, and the developing world, financial conditions have become much tighter, capital flows to developing countries have dried up, and huge amounts of market capitalization have evaporated.
~ ni weivU msLK evsK I Avw_K cw Zvb `Dwjqv `kmg nIqvi ci Avw_K Aev Le y B mxb nq, Dbq bkxj `k cwuy R mieivn nv m cvq Ges gj ~ nv mi dj kqvi evRvi _K weivU cwigvY cwuy R DavI nq hvq |
Towards the end of 2009, gross capital inflows to developing countries began to gain momentum as uncertainty subsided and risk aversion declined. On an annualized basis, total gross inflows to developing countries reached a $435 billion pace in the five months ending November 2009, up from $218 billion in the first half of the year. Policy interest rates around the globe remain very low, although some central banks have begun tightening (e.g., Australia has already tightened by 75 basis points) or signaled their intention to begin to do so soon. In the United States, the Federal Reserve Board's federal funds rate has been hovering around 12 basis points, compared with close to 550 basis points in mid 2007. The European Central Bank's (ECB) policy rate remains in the 100-basispoint range, compared with a level of more than 400 basis points in 2008. Short-term market rates are also very low. Reflecting policy steps to recapitalize banks and restore confidence in the international financial system, the spread between the rates that commercial banks charge one another for overnight lending and the overnight rate charged by central banksa common measure of banks' confidence in one anotherhas fallen from an unprecedented 365 basis points at the peak of the crisis to a more normal level of less than 15 basis points. As part of these efforts, central banks have taken a number of extraordinary steps including lending directly to private firms and intervening in secondary mortgage markets. As a result, the balance sheets have ballooned.
AwbqZv KU hvIqvq Ges Swuz K nv m cvIqvq Dbq bkxj `kmg ~ n 2009 mvji kl w`K gvU g~jab cevn ew cZ _vK| evwlK wfwZ bfi ^ Gi kl bvMv` 2009 mvji cvP u gvm gvU gj ~ ab cevn 435 wewjqb Wjvi c u Q | c e ~ eZx Qq gvm hvi cwigvY wQj 218 wewjqb Wjvi| m y ì nvi weke vcxB Kg hwÌ Kvb Kvb K`x q evsK (Aw jqv BwZgaB 75 ewmm cqU KwgqQ) g` y v bxwZ KVviZi Kivi NvlYv w`qQ| gvwKb h y i v dWvij wiRvfi iU 12 ewmm cqUi KvQvKvwQ hwÌ 2007 mvj Zv wQj 550 ewmm cqU| BDivcxqvb mUv j evsKi cwjwm iU 100 ewmm cqUi ^ gqv`x evRvi m y ì nvi Le y B Kg| KvQvKvwQ| evsKjvi cwuy R ew Ges Zvì Ici Avv ew i dj m ^ gqv` evsKjvi wbRì ga jws iU nv cqQ| nv m cqQ K`xq evsKi jws iUI| msKUi mgq GB nvi wQj 365 ewmm cqU| GLb Zv vcU K`x q evsKjv ek 15 ewmm cqU gv| G c BfU wKQy c`c wbqQ| Gi ga AvQ mivmwi cv dvg K FY `qv Ges gU MR gvK U n c Kiv| GZ D c xZ nqQ|
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Developing countries' access to international capital markets has also revived. Both sovereign and corporate borrowers have benefited from rising global liquidity, improved market conditions, and better long-term fundamentals of emerging economies vis--vis advanced economies. The recovery in corporate bond issuance by developing countries reached $109 billion through 2009, up almost $45 billion compared with 2008. In stark contrast to the recovery in bond and equity markets, cross-border bank lending remains weak as global banks continue to consolidate and deliberate in an effort to rebuild their balance sheets. In contrast with debt-creating flows, foreign direct investment (FDI) has yet to show signs of rebounding. FDI tends to be the most stable source of international capital, but inflows nevertheless have declined by 40 percent since the first quarter of 2008 and stood at $69 billion in 2009 Q3. Although these flows are expected to have recovered during the last quarter, inflows to all developing countries for the year as a whole are expected to come in at $385 billion, only 30 percent of their 2008 values. While resource-related investment has picked up in 2009 after a pause in late 2008, investment in the banking sector, which led the surge in recent years, remains limited.
AvR v wZK cywu R evRvi Dbqbkxj `kjvi c ekhvMZv cb y ixweZ nqQ| miKvwi Ges emiKvwi FY Mn xZviv we`gvb DbZ Zvij cwiww Z _K mwy eav cvQb| DbZ evRvi cwiww Z, `xN gqv` Dbqbi mv ebv Ges DbZ I Dbq bkxj `k weivRgvb AbyKj z cwiww ZZ mevB jvfevb nQ| Dbq bkxj `kjvZ 2009 mvj KcviU e wewi cwigvY wQj 109 wewjqb Wjvi hv 2008 mvji Zj z bv q c v q 45 wewjqb Wjvi ewk| e I gj ~ ab evRvi Av`vqi Zj z bvq Avt `kxq evsK FYi Aev è y j| KviY en r evsKjv Zvì Aev i Dbw Z Kivi cvkvcvwk evj kxUi Aev DbZ Kivi mev K c Pv PvjvQ| F Y ce vn ew i Zj z bvq dib wWi BbfgU Gi MwZ wdi cvIqv mgqmvc evcvi | GdwWAvB AvR vw ZK cwuy Ri mePq ww Zkxj Drm nZ hvQ| wK 2008 mvji c_ g gvwmK GdwWAvB 40 kZvsk nvm cq 2009 mvji PZz_ gvwmK 69 wewjqb Wjvi `vwu oqQ| GdwWAvB Gi ce vn MZ gvwmK Av`vq Avkv Kiv njI Dbq bkxj `kjvZ GdwWAvB ce v n i c w i g v Y 3 8 5 wgwjqb Wjvi `vuovZ cvi | hv 2008 mvji ce v n i 3 0 kZvsk| m` mwKZ wewbqvM 2008 mvji kl _gK `vo u vjI 2009 mvj wKQU y v evo| evswKs LvZ ebv `Lv MjI Zv mxwgZ wQj| wewbqvMi mv
The global economic crisis affected developing countries first and foremost through a sharp slowdown in global activity due to a sudden cut in investment programs, consumer durable demand, and a widespread effort to reduce inventories in the face of uncertain future conditions. Falling export demand, commodity prices, and capital flows exacerbated and extended the downturn. Overall, growth in developing countries declined to an estimated 1.2 percent in 2009, down from 5.6 percent in 2008.
P ~ xi k _ MwZ, Pvwn`vi wekg `vi KviY wewbqvM Kgm y cY Kwgq wbgwy LZv, fwelZi AwbqZvi KviY gR` vm Dbq bkxj `kjvi A_b xwZK Avbvi evcK cq y I Kg _vK| ivwb nv m, wZM Z Ki| gvji gR` cYi gj ~ nv m I g~jab ce vn nvm g`vi Aev K A vi I wZ ^ Ki| dj AebwZi w`K wbq D~Z g`vK cj Dbq bkxj `kmg ~ n ce w i nvi Kg Avm 1.2 kZvsk| 2008 mvj G nvi wQj 5.6 kZvsk|
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Just as the sharp rise in food and fuel prices generated a rapid acceleration of headline inflation in both high-income and developing countries during 2008, the fall of commodity prices during the course of 2009 and the unprecedented slowdown in the global economy has led to a dramatic fall in headline inflation. The median rate of year-over year consumer price inflation in high-income countries, which peaked at 5.2 percent in mid2008, turned negative in July, but was 0.6 percent in November 2009. The median inflation rate in developing countries has declined from a peak of 12.4 percent in mid-2008 to only 2.6 percent in November 2009. Notwithstanding the declines in headline inflation, core inflation has remained relatively stable in high-income countries. Only in Japan has core inflation dropped below zero. The bulk of the commodity price deflation has now passed through the system; therefore headline inflation can be expected to rise toward core inflation rates in coming months.
Lv` I Rv jvwbi gj ~ ew cvIqvi dj abx I Dbq bkxj `kmg ~ n g~jxwZ 2008 mvj `viYfve eo hvq| Avevi Abw`K 2009 mvj wek A_b xwZi g`vi KviY gj ~ xwZ AvkvZxZfve nv m cvq| abx `kjvZ Mo gj ~ xwZi nvi 2008 mvji gvSvgvwS mgq 5.2 kZvsk DV| Rj y vB gvm G nvi bwZevPK nq| Avevi 2009 ^ i Zv nq 0.6 kZvsk| Dbqbkxj `kjvZ mvji bf Mo gj ~ xwZi nvi 2008 mvji gafvM mev P 12.4 m cvq| mvaviY g~jxwZ nv m kZvsk _K 2.6 kZvsk nv cjI g~j g~jxwZ abx `kjvZ gvUvgwy Ufve wi ~ g~jxwZ k ~ bi bxP bvg| _vK| GKgv Rvcvb gj cYi gj ~ msKvPb eZgvb GKwU wmgi ga w`q AwZevwnZ nQ Ges GKviY cieZx gvmjvZ g` y v xwZi nvi evoZ cvi|
Growth in the East Asia and Pacific region (particularly in China) as well as in South Asia (particularly in India) has been resilient, buoyed by a massive fiscal stimulus package in China and by India's skillful macroeconomic management. Between 2008 and 2009, growth in the East Asia and Pacific region is estimated to have eased by only 1.2 percentage points to 6.8 percent, while South Asian growth has remained stable at 5.7 percent. GDP growth in China is estimated to have slowed from 9 percent in 2008 to 8.4 percent in 2009, but is expected to recover toward 9 percent over the remainder of the forecast period.
ce ~ Gwkqv Ges cvwmwdK Aj (weklZ Pxb) Ges `wY Gwkqvq (wekl Ki fviZ) ce w i nvi AevnZ _vK| Gi KviY Pxb KZK Mn x Z c Yv`bvg~jK cvKR Ges fviZ KZK Abm y Z wePY mgwK A_ bw Z K eev cbv bxwZ| 2008 Ges 2009 mvj ce ~ Gwkqv Ges cvwmwdK Aj 6.8 kZvsk cew nq| `wY Gwkqvq w i nvi 2008 ce w i nvi wQj 5.7 kZvsk| Pxbi ce mvji 9 kZvski Zzjbvq 2009 mvj 8.4 kZvsk nq| Aek Pxbi ce w 9 kZvsk ew cve ej aviYv Kiv nQ|
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Developments
have
been
reflected
in
global
wekg `vi cieZxKvj wk Drcv`b nv m cjI eZg v b wk Drcv`bi ce YZv ew i w`K| 2009 mvji m de qvixZ wk Drcv`b evrmwiK wfwZ 27 kZvsk nv cqQ| wK Gwcj /g gvmi w`K wk Drcv`b ew cvIqv i nqQ| Gi KviY Pxbi 575 wewjqb Wjvi g ~ ji c Yv`bvg~jK cvKR (cvP u eQii Rb)| Pxbi ve Avg`vwb Pvwn`v ew cvIqvi dj Abvb `k Zvi cf coQ| 2009 mvji gvPi w`K wk Drcv`b Pxb ev` Abvb `k ew cZ i nqQ| g gvmi w`K DbZ `kI Zvi cfve coe|
industrial production, which declined sharply in the aftermath of the global financial crisis. In February 2009, world industrial production was falling at a 27 percent annualized pace, but by the beginning of April/May, production began recovering, initially led by accelerating growth in China following the implementation of the $575 billion (over five quarters) fiscal stimulus package. Increased import demand from China quickly spread to other countries, with industrial production registering positive growth in emerging countries (excluding China) by March 2009 and high-income countries by May 2009.
As the benefits of the stimulus measures and inventory restocking began to wane, industrial production growth rates have started to moderate. Whether this deceleration signals a transition to slower growth, more in line with underlying demand patterns or the beginnings of a double-dip recession will largely depend on the extent to which consumer and business demand picks up in the months ahead. Great uncertainty continues to surround future prospects. Even the weak recovery outlined above is not certain. If the private sector continues to save in order to restore balance sheets, a doubledip, characterized by a further slowing of growth in 2011 is entirely possibleespecially as the growth impact of fiscal stimulus wanes. A stronger recovery is also possible, if the massive traditional and nontraditional monetary stimulus that has been put into place in high-income countries begins to gain traction.
c Yv`bvg~jK cvKRi dj g`vev gkt KU hvQ| wk Drcv`b cew i nviI ww Zkxj nQ| AvMvgx w`b wK aibi eemvwqK Ges fvv Pvwn`v ew cvQ Zvi Dci wbfi KiQ fwelr ce w i nvi A_ev g`vi Kej covi mv ebv|
AvMvgx w`b Kx NUe Zv wbq AwbqZv iqB hvQ| GgbwK A_b xwZi g` y cb y ixeb ne wKbv ZvI AwbwZ| emiKvwi LvZ hw` mq evo Zvnj evj kxU Dbw Z nZ cvi| GUv 2011 mvj me nZI cvi| cew i nvi evoZI cvi hw` c Yv`bvg~jK cvKR c` myweav dj w`Z i Ki|
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Bangladesh Economic Scenario

Bangladesh maintained a steady growth in 2009 despite global financial turmoil, but growing power and energy shortages and poor infrastructure remained as major hurdles to the countrys industrial activities. Financial markets and institutions remained free of the toxic assets and contagion afflicting the global financial markets over the last couple of years because of the limited and regulated external exposure of our economy. Unlike most other economies in the region and elsewhere, economic growth in Bangladesh has so far been only mildly impacted by the ongoing global slowdown, attaining 5.9 percent real GDP growth in FY 09 following 6.2 percent growth of FY 08. Foreign exchange reserve is more than USD 7.04 billion even after ACU adjustment. Inward remittances are recorded at USD 9.7 billion (end of June 2009) and exports continue to post doubledigit growth. The sector-wise changes in the domestic economy are mentioned below:
evsjv`ki A_bwZK cwiww Z wek R y o Avw_K wechq _vKv mI 2009 mvj bwZK AMM wZ AevnZ _vK| Ze we`yr evsjv`ki A_ NvUwZ Ges è y j AeKvVvgv wkvqbi c_ evav I GbvwRi xwZ wek Avw_K evRvii mv_ nq _vK| evsjv`ki A_b mxwgZ chv q m _vKvi KviY Avgvì Avw_K evRvi Ges cw Zvbjv g y wQj welv cwimr (toxic assets) _K| dj MZ ` y eQi evsjv`ki A_b xwZ evBii mgmv viv Avv nqwb| G Aji Abvb `k A_ev Zvi evBi Abvb `ki Zzjbvq wekg `v evsjv`ki A_b xwZi wZ KiZ ciQ Kg| 2008 mvj Avgvì ce w i nvi wQj 6.2 kZvsk| mLvb 2009 mvj ce w vwis BDwbqb Gi `vq AwRZ nq 5.9 kZvsk| Gwkqvb wKq cwikvai ciI Avgvì e`wkK gy`v wiRvfi cwigvY y kl e`wkK wQj 7.04 wewjqb Wjvi| 2009 mvji Rb iwgUi cwigvY wQj 9.7 wewjqb Wjvi| ivwb ew i bw Z K cwigvY wQj 10 kZvski Ici| LvZIqvix A_ AMM wZi wP bxP Z z j aiv njvt
a. Agriculture
Agriculture sector posted an impressive 4.68 percent growth, more than 1 percent higher than the target set at PRSP-II. Within the agriculture sector, crop sub-sector has posted an impressive 5.93 percent growth, contributing to ensuring countrys food security in the backdrop of the inflationary pressure on prices of food items experienced in the recent past.
K. Kw l
Kw l LvZ ce w i nvi wQj 4.68 kZvsk| wcAviGmwc-2 G h jgvv wQj Zvi Zj z bvq GB ce w i nvi wQj GK kZvsk ewk| Kw l LvZi ga km DcLvZ cew i nvi wQj 5.93 kZvsk| mvcw ZK Kvj Lvì DPgj ~ Ges gj ~ xwZi c vcU kmi G ce w Avgvì Lv` wbivcv wbwZ Ki|
b. Industry
The targeted industrial growth of 11.70 percent in FY 09 was significantly higher than the actual growth of 6.78 percent in FY 08. The sectors performance was affected by domestic uncertainties
L.wk
2008 mvji wk ce w i nvii Pq 2009 mvji hvMfve ewk| 2008 mvj wk jgvv wQj DjL ce w i nvi wQj gv 6.78 kZvsk| mLvb 2009 mvji Rb jgvv wQj 11.7 kZvsk| wkLvZi Drcv`b
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and the ongoing economic crisis. Industrial sector as a whole could actually manage a growth rate of 5.92 percent in FY 09. Within the industrial sector, growth rate of manufacturing sub-sectors (contributing 17.24 percent in the incremental GDP) experienced significant slowdown, posting a growth of 5.92 percent in FY 09 against 6.78 percent in FY 08. However, good performance of exports helped export-oriented industrial sector to overcome difficulties significantly, thereby contributing to the overall performance of the sector.
Afi xY AwbqZv Ges A_ bwZK msKUi KviY evnZ nq| 2008-09 A_e Qi wk cew i nvi wQj gv 5.92 Zx eQi GLvZ ce w i nvi wQj 6.78 kZvsk| c~ee kZvsk| wk LvZi Aaxb gvbydKPvwis DcLvZjvZ ce w NU Kg| ewaZ wRwWwcZ G LvZi Ae`vb 17.24 y x wki ivwb ew i dj cwiww Z kZvsk| Aek ivwbgL wKQU y v wbq Y _vK| GZ wki mvweK Ae`vb gvUvgwy U mv lRbKB _vK|
c. Services
Service sector has consistently experienced a moderately high performance, contributing to its increasing share in Bangladeshs GDP (49.7 per cent of total GDP in FY 09). In FY 09, service sector recorded a 6.25 percent growth, which was lower than the PRSP II target of 6.87 percent. Among the nine sub-sectors of the service sector, three experienced lower growth performance (wholesale & retail trade, transport & communication and financial intermediaries), while for others the growth rates were higher in FY 09 compared to FY 08. In FY 08 the growth in the service sector was 6.5 per cent.
M. mev
mev LvZ AevnZfve fvjv ce w i nvi eRvq iL vb G LvZi wRwWwcZ Ae`vbi cwigvY PjQ| eZg nQ 49.7 kZvsk| 2008-09 A_e Qi mev LvZ ce w i nvi wQj 6.25 kZvsk| wcAviGmwc-2 G Aek Gi jgvv wQj 6.87 kZvsk| mevLvZi bqwU DcLvZi ga wZbwUi ce w wQj Kg| G wZbwU LvZ nQ cvBKvwi I LP y iv eemv, cwienb I hvMvhvM Ges Avw_K LvZ| ~ eZx A_eQii Zzjbvq Abvb QqwU DcLvZ cew i nvi ce ewk wQj| 2007-08 A_e Qi mevLvZi ce w wQj 6.5 kZvsk|
d. Investment
Growth of gross capital formation made some progress, posting 5.72 percent in FY 09 compared to only 1.80 percent in FY 08. However, this is lower than the general trend which hovers around 8 percent to 9 percent. Investment has suffered from both lack of infrastructure and continuing uncertainty in recent times. Ongoing recession also had an adverse impact on investors confidence. In spite of growth in absolute terms, gross investment as percentage of the GDP has declined for the third consecutive year, recording 24.18 percent of GDP in
N. wewbqvM
gvU cwuy R MVbi nvi AvjvP A_e Qi wKQU y v eoQ| 2007-08 A_e Q i G L v Z c e w i nvi wQj 1.80 Qi Zv 5.72 kZvsk Dbx Z nq| kZvsk| 2008-09 A_e z bvq Kg| mvaviY nvi nQ Aek GB nvi mvaviY nvii Zj 8 _K 9 kZvsk| AeKvVvgvMZ mgmv Ges A_ bw Z K AwbqZvi KviY wewbqvM wewNZ nq| we`gvb g`vi KviYI wewbqvMKvixì Avv b nq| UvKvi A evojI wRwWwci kZvsk wnmve MZ wZb eQi ai wewbqvMi cwigvY nv m cvQ | 2008-09 A_e Q i
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FY 09 compared to 24.21 percent of GDP in FY 08. This is somewhat lower than the Medium Term Macroeconomic Framework (MTMF) target of PRSPII which was set at 24.40 percent of GDP.
wewbqvMi cwigvY wQj wRwWwci 24.18 kZvsk| ce ~ e Zx eQi Gi cwigvb wQj 24.21 kZvsk| wgwWqvg mvgwK `qv AvQ Zvi Zj z bv q A_ bwZK KvVvgvZ h UvMU wewbqvM cew Kg|
e. Savings
Stagnating share of domestic savings in the GDP continued to persist in FY 09. As matter of fact, domestic savings as a percentage of GDP somewhat declined from 20.31 percent in FY 08 to 20.02 percent in FY 09. Rising prices of essential items in the first half of FY 09, particularly for food items, was perhaps a contributing factor as well. In contrast, impacted by successive high growth in remittance inflow, national savings rate has registered higher growth in recent times. Share of national savings as percentage of GDP increased further in FY 09, to reach 32.36 percent of GDP, as against 30.21 percent in FY 08.
O. mq
Afi xY mq GKwU w eiZvi jY `Lv hvQ| Qi mqi cwigvY wQj eZc 2008-09 A_e wRwWwci 20.02 kZvsk| ce ~ eZx eQi Gi cwigvY wQj mgq R yo gv 20.31 kZvsk| eQii AaK wbZc qvRbxq cYi h g~jxwZ, wekl Ki Lv`` ei Z G w eiZv `Lv w`qQ| g ~ ji Da MwZi KviYB me Abw`K iwgU AevnZfve ew cvIqvq RvZxq mq Qi wRwWwci wnmve Gi ce w nq ewk| 2008-09 A_e RvZxq mq Gi nvi wQj 32.36 kZvsk|
f. Monetary Development
Growth of Broad Money (M2) was kept consistent with target GDP growth and inflation. The growth of Broad Money stood at 19.2 percent in FY 09, which was lower than previous years growth of 20.6 percent.
P. g` y v cwiww Z
wRwWwc I gj ~ xwZi jgvvi m mvgm iL eW Qi eW gvwb ew gvwb (Gg2) ew cvq| 2008-09 A_e w i nvi wQj cvq 19.2 kZvsk nvi| MZ A_eQi Gi ce 20.6 kZvsk|
g. Balance of Payment
The balance of payment (BOP) position remains healthy. From USD 331 million in FY 08, the overall BOP of Bangladesh reached USD 2,058 million in FY 09. Current account balance also followed similar trend, increasing from USD 702 million in FY 08 to USD 2,536 million in FY 09.
Q. evj Ae cvgU
evj Ae cvgU (weIwc) cwiww Z wQj mv lRbK| 2007-08 A_e Qi 331 wgwjqb Wjvii Zj z bvq mvweK weIwc 2008-09 A_e Qi 2,058 wgwjqb Wjvi Dbx Z nq| KviU GKvDU evj-G GKB aviv jYxq wQj| G 2007-08 A_e Qii 702 wgwjqb Wjvii Zj z bv q Qi evj 2,536 wgwjqb Wjvi Dbx Z 2008-09 A_e nq|
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h. Export
Bangladeshs total export earnings during FY 08 stood at USD 14.09 billion, registering a growth of 15.92 percent over FY 07. Performance during FY 09 (USD 15.54 billion) has by and large followed this trend. Growth rate of 10.28 percent posted during this period is particularly impressive in view of the global economic crisis when the majority of developing countries were experiencing falling export earnings. Specially export of knitwear grew by vigorous 16.2 percent and constituted 41.32 percent of total export. Export of woven garments increased by 14.5 percent during FY 09. Exports of home textiles, footwear, textile fabrics and agricultural products achieved growth but did not fulfill the target. Frozen shrimps and fish export decreased by 14.9 per cent due to global financial crisis. Export of jute and jute goods has revived.
R. ivwb
2007-08 A_e Qi evsjv`ki ivwbi cwigvY wQj ~ e Zx eQii Zj z bvq Gi cwigvY 14.09 wewjqb Wjvi| ce 15.92 kZvsk ewk| 2008-09 A_e Q i I i v w b i A M M wZ fvj wQj| G eQi ivwbi cwigvY wQj 15.54 wewjqb Wjvi| hLb ewki fvM `ki ivwb nv m cqQ Ges hLb wek g`v we`gvb ZLb ivwb LvZ 10.28 kZvsk ce w cksmvi welqB eU| wekl Ki wbUIqvi ivwb 16.2 kZvsk ew cvq| gvU ivwbZ wbUIqvi ivwbi Ae`vb 41.32 kZvsk| 2008-09 A_e Qi Ifb Mvg Um ivwb ew cvq 14.5 kZvsk| `kxq e, dU z Iqvi, UUvBj dwe Ges Kw lcYi ivwb ew cvq; wK Gjv jgvv ci ~ Y KiZ cviwb| wekg`vi KviY wngvwqZ wPswo Ges gvQi ivwb 14 `kgwK 9 kZvsk nv m cvq| cvU I cvURvZ è ivwbi Dbw Z nqQ|
i. Import
Import payment rose by 4.06 in FY 09 from FY 08. The lower growth of import was mainly attributed to lower prices of fuel oil and some imported commodities in the international markets and decrease in food grain prices because of good domestic harvest. Import share of textiles and articles was the highest at 9.33 percent of total imports followed by petroleum, oil and lubricants, accounting for about 8.87 percent of total imports. With the fall of the global rice price and good Boro harvest in 2008, Bangladesh was in a more comfortable position and imported only about 6.03 lakh MT of rice during FY 09 compared with 20.55 lakh MT of import in FY 2008.
S. Avg`vwb
2007-08 A_e Qii Zj z bvq 2008-09 A_e Qi Avg`vwb wZK evRvi Avg`vwb ew cvq 4.06 kZvsk| AvRv cYg~j nv m Ges Rv jvwb Zji gj ~ nv mi KviY Avg`vwb UvKvi A Kg nq| GQvov `kxqfve AwaKZi cwigvY Lv`km Drcv`bi dj Lv` Avg`vbxI wQj Kg| mePq (9.33%)| ewk Avg`vwb nq UUvBj I UUvBj è b c U v wjqvg, Zj I jwy e KUi| gvU Gi ciB v Avg`vbxZ Gjvi Ae`vb 8.87 kZvsk| 2008 mvj fvj eviv dmj Drcb nq| AvRv wZK evRvi Pvji `vg Qi Avg`vwb nq gv 6.03 Kg| dj 2008-09 A_e gwUK Ub | c e ~ eZx eQi Lv`km Avg`vbxi cwigvY wQj U b| 20.55 j gwUK
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j. Foreign Remittances
In sharp contrast to the gloomy outlook with regard to remittance of flows worldwide, Bangladeshs working performance in this area in FY 09 remained upbeat. Remittances Bangladeshi nationals abroad increased by more than 22.42 percent in FY 09 over FY 08. Monthly remitted amount of USD 919.10 million, the highest single month's performance ever, was recorded for June 09. Remittances from Saudi Arabia constituted the major share of the total inward remittance (29.51%), followed by the United Arab Emirates (about 18.11%) and the USA (about 16.26%).
T. e`wkK iwgU
mviv wek iwgUi evRvi g`v _vKv mI evsjv`ki iwgU ew AevnZ _vK| 2008-09 A_e Qi we`k Kgi Z evsjv`kxì iwgUi cwigvY 22.42 kZvsk ew cvq| mePq ewk iwgU Avm Rb y gvm| 2009 mvji Rb y gvm iwgUi cwigvY wQj 919.10 wgwjqb Wjvi| mw` Avie _K h iwgU Avm Zv gvU iwgUi 29.51 kZvsk| gvU iwgU Ae`vbi w`K y Uv v b msh y Avie AvwgivZ (18.11%) _K Zvicii ` Ges gvwKb h y i v i (16.26%)|
k. Foreign Assistance
In FY 09, a total of USD 1.73 billion in aid had been disbursed which was approximately USD 335 million less than the amount disbursed in FY 08. Aid related payments (the principal) increased to USD 641.20 million in FY 09 from USD 586 million in FY 08. Net receipts of foreign aid during FY 09 decreased to USD 1,085.91 million from USD 1,475.52 million in FY 08.
U. e`wkK mnhvwMZv
2008-2009 A_e Qi gvU cv e`wkK mvnvhi ~ e Zx eQii Zj z b vq cwigvY wQj 1.73 wewjqb Wjvi| ce Gi cwigvY 335 wgwjqb Wjvi Kg wQj| Avw_K mvnvh Q i w Q j cwikvai (Avmj) cwigvY 2008-09 A_e 641.20 wgwjqb Wjvi| ce ~ e Zx eQi Gi cwigvY wQj 586 wgwjqb Wjvi| AZGe bxU e`wkK mvnvhi cwigvY `vo u vq gv 1,085.91 wgwjqb Wjvi| ce ~ eZx eQi bxU e`wkK mvnhvi cwigvY wQj 1,475.52 wgwjqb Wjvi|
l. Economic Prospect in near future

In the updated Medium Term Macro-economic Framework (MTMF), the real GDP growth has been projected to increase gradually to 7.0% and 7.2% in FY 10 and FY 11, respectively assisted sustained macro-economic stability, by improved
V. Aì ~ fwelZi A_ bwZK mv ebv

mskvwaZ gagqv`x mgwK A_bwZK KvVvgvZ 2009 w i nvi aiv nqQ 10 Ges 2010-11 A_eQii Rb ce 7 I 7.2 kZvsk| G cv jbi wfwjv nQt mvgwMK eemv I wewbqvM mwy eav, wk A_ bwZK ww ZkxjZv, ewaZ I mevLvZ AwaKZi ce w , Kw lLvZ AevnZ DPZi ce w , ivwbi egL y xKiY Ges ivwbi wfw mcm viY, DbZ `Zv Ges KvwiMwi Dbw Z Ges Pjgvb msvi Kgmw~ P evevqb BZvw`|
business and investment facilities, increased growth in the industry and services sector, buoyancy in the overall agricultural sector growth, expansion and diversification of the export base, increased efficiency, technological progress and ongoing implementation of economic reforms programs.
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Emergence of Agrani Bank Limited

Agrani Bank Limited was incorporated as a Public Limited Company on 17 May 2007 with a view to take over the business, assets, liabilities, rights and obligations of the former Agrani Bank, which emerged as a Nationalised Commercial Bank in 1972, pursuant to the Bangladesh Banks (Nationalisation) Order, 1972 (President's Order No. 26 of 1972), on a going concern basis through a Vendors Agreement. The Agreement was signed between the Ministry of Finance, Government of the People's Republic of Bangladesh on behalf of the former Agrani Bank and the Board of Directors of the Bank on behalf of Agrani Bank Limited on 15 November 2007 with retrospective effect from 01 July 2007. All shares of the Bank are held by the Government of the People's Republic of Bangladesh and 12 other shareholders (with one share each, the qualification share required to become a director)nominated by the Government. The Bank has 867 branches as of 31 December 2009 with no overseas branch. The Bank has, however, two wholly owned subsidiary companies named Agrani Exchange House (private) Ltd. in Singapore and Agrani Remittance House SDN, BHD in Kuala Lumpur, Malaysia.
AMY x evsK wjwgUWi AvZcK vk

17 g 2007 ZvwiL AMY x evsK GKwU cvewjK wjwgUW Kvvbx wnmve AvZcK vk Ki | AMY x evsK wjwgUW cv Y AMY x evsK-Gi eemv, m`, `vq, AwaKvi I KZZ AwaMn Y K i | A M Y x evsK cw ZwZ nq 1972 mvj i evsjv`k evsK RvZxqKiY Av`k ej (cw mWUi AWv bs 26, 1972 mvj)| AwaMn Yi KvR mb nq GKwU fi Pwz i gvag| miKvi wQj AMY x evsK-Gi c Ges AMYx evsK wjwgUWi c wQj cwiPvjbv cwil`| GB AwaMn Yi KvR mvw`Z nq 15 bfi ^ 2007 mvj| wK Zv KvhKi Kiv nq 1 Rj y vB 2007 mvj _K|
evsKi mg kqvii gvwjK MYcR vZx evsjv`k miKvi Ges AviI 12(evi) Rb kqvi nvvi hv u iv miKvi KZK gbvbxZ| GB 12(evi) Rbi cZKB gv GKwU Ki kqvii aviK hv cwiPvjKi hvMZvg~jK kqvii b ~ bZg cwigvb | 2009 mvji 31 wWmi ^ evsKi kvLv msLv wQj 867wU| we`k Kvb kvLv H ZvwiL wQj bv| AMY x evsKi mY ~ gvwjKvbvq wmvc y i AMYx GP nvDR (cv t) wjt Ges gvjqwkqvq AMY x iwgU nvDR GmwWGb, weGBPwW bvg ` y Uv mvewmwWqvwi Kvvwb iqQ|
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Progress Achieved in 2009

The Bank continued to grow steadily in all major areas. Deposits increased by 13.26 per cent in 2009 and reached Tk. 16,628 crore from Tk. 14,682 crore in 2008. Total loans and advances in 2009 were TK. 12,223.60 crore as against Tk.11, 336.22 crore in 2008; which is 7.83 per cent higher than that of the previous year. The Bank's profit continued to grow in 2009. The operating profit rose by 1.81 per cent to Tk. 644 crore in 2009 from Tk. 633 crore in 2008, due to which capital shortfall of Tk. 67.36 crore in 2008 was reversed and led to a capital surplus of Tk. 73.34 crore in 2009 even after capital requirement increased by Tk.113 crore.
2009 mvj AwRZ AMM wZ

eemvi mKj iZc ~Y evsKi AMM wZ AevnZ AvQ| 2009 mvj AvgvbZ ew cqQ 13.26 kZvsk| 2008 mvj AvgvbZi cwigvY 14,682 KvwU UvKv| 2009 mvji kl AvgvbZi cwigvY `vuovq 16,628 KvwU UvKv| 2008 mvji 11,336.22 KvwU UvKv FY I AwM gi wecixZ 2009 mvji kl FY I AwM gi cwigvY wQj 12,223.60 KvwU UvKv, hv ce ~ eZx eQii Pq kZKiv wnmve ce w i nvi `vo u vq 7.83 kZvsk| evsKi gb y vdvI ew cvIqv AevnZ AvQ| 2009 mvj AcviwUs cw dUi cwigvY wQj 644 KvwU UvKv| kZKiv wnmve G ce w i cwigvY 1.81 kZvsk | ce ~ eZx eQI AcviwUs cw dUi cwigvY wQj 633 KvwU UvKv| 2009 mvj evowZ g~jab jvM 113 KvwU UvKv| GZ`mI evsKi D g~jabi cwigvY wQj 73.34 KvwU UvKv| A_P ce ~ eZx eQi gj ~ abi NvUwZ wQj 67.36KvwU UvKv| NvUwZi j D gj ~ ab me nq DPZi AcviwUs gb y vdv AR bi KviY|
Capital Structure
The shareholders' equity of the Bank as on 31 December 2009 stood at Tk. 916.72 crore. The equity increased by Tk. 274.80 crore in the year 2009 from Tk. 641.92 crore in 2008. The paid-up capital of the Bank has increased from Tk.248.42 crore to Tk. 496.84 crore due to issuance of bonus shares.
gj ~ ab KvVvgv
2009 mvji wWmi ^ kl evsKi gvU kqvi nvviì BKB z wUi cwigvY wQj 916.72 KvwU UvKv| AvjvP eQi kqvi nvviì BKB z wUi cwigvY ew cvq 274.80 KvwU UvKv| 2008 mvj kqvi nvviì BKB z wUi cwigvY wQj 641.92 KvwU UvKv| evbvm kqvi Bm y Kivi dj cwikvwaZ g~jab 248.42 KvwU UvKv nZ ew cq 496.84 KvwU UvKvq Dbx Z nqQ|
Capital Structure Chart
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Funding Structure
The year-end funding structures of the Bank in 2008 and 2009 are given below:
Znwej KvVvgv
2008 Ges 2009 mvji kl evsKi Znwej KvVvgv wbict

(Amount in Crore Taka.)
Sources of Fund Deposits Paid-up-Capital Statutory Reserve Revaluation & Amortization Reserve in Govt. Securities General Reserve Retained surplus from Profit and Loss account Total :
2009 16628.36 496.84 138.94 206.48 0.50 73.96 17,545.08
2008 14681.46 248.42 73.78 42.53 0.50 276.69 15323.38
Pie Chart
Asset Portfolio
The year-end asset portfolio scenarios of the Bank in 2008 and 2009 are given below:
mì cvU dvwjI 2008 Ges 2009 mvji kl evsKi mì cvU dvwjI wbict
(Amount in crore Taka)
Particulars of Assets Loans and advances Investments Fixed assets Money at call and short notice Cash in Hand and with other Banks & FIs Other assets Total :
2009 12,223.61 4,089.72 287.86 170.00 1,252.17 3,155.55 21,178.91
2008 11,336.23 2,932.98 253.07 82.00 1,012.08 3,116.21 18,732.57
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Pie Chart
Business Performance a. Deposits

At the end of December 2009, the deposit of the Bank was Tk. 16,628.36 crore compared to Tk. 14,681.46 crore at the end of previous year leading to a year-over-year the growth in deposit of 13.26 percent.This growth rate is a remarkable achievement, considering the adverse economic scenario of the country during the year under review.
eemvq AMM wZ K. AvgvbZ

2009 mvji wWmi ^ kl evsKi AvgvbZi cwigvY wQj 16,628.36 KvwU UvKv hv MZ eQi wQj 14,681.46 KvwU UvKv| GZ G ce w i nvi `vo u vq 13.26 kZvsk| AvjvP eQii g`v cwiww Z mI AvgvbZi cew i nvi wQj DjL hvM|
Bar Chart : Deposits
In the prevailing situation, mobiliziation of deposits has become very competitive and as a result the average cost of fund for the banks in the private sector has increased compared to the previous
Pjgvb Aev q AvgvbZ msMn AZ cw ZhvwMZvg~jK welq nq `v u w o q Q | c e ~ e Zx eQii Zj z bvq Znwej eq ew cqQ| GKviY wb eq mvc AvgvbZ msM ni
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year. The Bank has laid particular emphasis on procurement of low cost fund. The deposit mix of the Bank as on 31 December 2009 was as follows:
(Amount in crore Taka) 2009 2008 2,802.84 6,965.59 6,566.36 293.57 16,628.36 2,482.30 6,485.55 5,412.09 301.52 14,681.46
c`c bqv nqQ| 31 wWmî, 2009 mvj evsKi AvgvbZi wP wbic t
Types of Deposits Current and other deposits Savings Bank Deposits Fixed Deposits Bills Payable Total
AvgvbZi aib PjwZ Ges Abvb AvgvbZ mqx AvgvbZ gqv`x AvgvbZ c`q wej gvU
2009 2,802.84 6,965.59 6,566.36 293.57 16,628.3 6
(KvwU UvKvq) 2008 2,482.30 6,485.55 5,412.09 301.52 14,681.46
Pie Chart of Deposit Mix-2009
Chart of Deposit Mix-2008 and 2009
b. Assets Quality
Quality of asset is one of the strong areas of operation of the Bank. Credit facilities are allowed after ensuring optimum asset quality i.e. Banks standard of excellence will not be compromised. For improving the quality of our assets, the Bank Management has prioritised financing in trade and commerce by providing working capital. Moreover, some pragmatic steps have been taken to reduce non-performing loans as well as to prevent new classification thereof.
L.mì gvb
AMY x evsKi mì YMZ gvb Gi kwi GKwU w`K| r mì gvb wbwZ KiB evsK _K FY `qv nq| A_v evsKi DrKlZvi gvb KLbI Qvo `qv nq bv| mì YMZ gvb ew i Rb evsK eemv I evwYR FY `qvK A Mv waKvi w`Q Ges G PjwZ gj ~ ab FY c`vb z kY xwebvwmZ FYi cwigvY ew ivaK KiQ| bZb Ges ci y bv kY xwebvwmZ FYi UvKv Av`vq ce ~ K Kwgq bqv nQ| Avbvi Rb wekl eev
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c. International Trade
The international trade financing constitutes a major business activity conducted by the Bank. The Banks foreign trade related activities, carried out through 40 AD branches across the country, have earned confidence of importers, exporters and Bangladeshi work force working abroad. For smooth conduct of international trade, The Bank has as many as 383 foreign correspondents throughout the world. In addition, the Bank is maintaining 39 NOSTRO Accounts with the worlds leading banks.
M.AvR v wZK evwYR

evsK hmg FY `q Zvi ga AvR v wZK evwYR c` FY GKUv DjL hvM Ask| 40wU e`wkK evwYR kvLvi gvag mvw`Z AvRv wZK evwYR Avg`vbxKviK, Z evsjv`kxì Avv A Rb ivwbKviK Ges we`k Kgi KiZ mg nqQ| `fve AvRv wZK evwYR Kivi Rb x evsKi iqQ 383wU we`kx mviv wek AMY KimcU| AwaK, y evsK weki weLvZ evsKjvi GKvDU cwiPvjbv KiQ| m 39wU b
d. Import-Export Business
The import business of the Bank during the year 2009 was Tk. 7,753 crore. The export business handled by the Bank during the year 2009 stood at Tk. 4,461 crore. The slow growth rate in export business is attributable to the volatile situation in the world economy.
N.Avg`vwb-ivwb eemv
2009 mvj Avg`vwb eemvi A_vqb nqQ 7,753 KvwU UvKv| ivwb eemvq c`vb Kiv nqQ 4,461 KvwU UvKv| w wek A_bxwZi Aww Zkxj Aev i KviY ivwb eemv ce Kg nqQ|
e. Foreign Remittance Business

Since beginning, the bank has been highly active in remittance operations to facilitate disbursement of remittance received from Bangladeshi wage earners working abroad. Inward Foreign Remittance also played a significant role in decreasing the banks dependency on inter-bank market for payment of import bills in foreign currency. The remittances of the Bank resulted in steady increase of revenues for the Bank in spite of the downward trend in international trade. In the year 2009 the total remittance stood at Tk.5,587 crore as against Tk.5,269 crore in the year 2008. The Bank continues Taka Draft/ Electronics Fund Transfer arrangements with a number of overseas exchange
O.iwgU eemv
we`k Kgi Z evsjv`kxì cvVvbv UvKv Me j u v bv i A M Y x evsK RbjM _KB Zrci| cQ `vq gUvbvi Rb Avt evsK FYi Ici e`wkK gy`v kxjZv wQj Zv nv m iwgU weivU fw~ gKv evsKi h wbfi cvjb KiQ| e`wkK evwYR k_ MwZ _vKv mI YZv AevnZ iwgUi KviY evsKi Avqew i ce _vK| 2009 mvj gvU iwgUi cwigvY wQj 5,587 KvwU UvKv| 2008 mvj Gi cwigvY wQj 5,269 KvwU UvKv| we`kx GP Kvvbxjvi m evsK UvKv dvi eev AevnZ iLQ| Wv dU/BjUw bK dv Uv gacv P, DcmvMixq Aj I c~e Gwkqv Ges BUvjxi 35wU GP Kvvbx/evsKi m bUIqvK eev Rvi`vi
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companies/banks. The Bank has strengthened its overseas network by operating through a total of 35 exchange companies/banks, covering Middle East, the Gulf States, South-East Asia and Italy. Out of these 33 exchange companies/banks, the bank has two subsidiaries of its own through which expatriates are remitting their foreign earnings . The Bank has started instant payment remittance with the assistance of Money Gram, Transfast, Remit One andIME. The inflow of the remittance through the bank will increase remarkably in the coming days. Meanwhile, the bank brought a revolutionary change in the remittance distribution management by introducing on-line delivery system. At present, all the branches of 52 zones have been brought under this network. As a result, the remitted money can be deposited to the beneficiaries has accounts much within 24 hours. among The the introduction of on-line distribution of remittances generated enthusiasm workers. expatriate Bangladeshi Countrywide
Kiv nqQ| GB 35wU GP Kvvbxi ga evsKi ` y Uv mvewmwWqvix Kvvbx AvQ hvì gvag evsjv`kx IqRAvbv iiv `k UvKv cvVvQ| gvwbMv gi gvag evsK ZvrwYKfve UvKv c`vbi eev KiQ| AbjvBb weZib cwZ Pvjy Ki evsK iwgUi UvKv Ni Ni cQ u vbvi jYxq AMM wZ `wLqQ| eZgvb 52wU Rvbi mKj kvLvK AbjvBb cwZi Aaxb Avbv nqQ| dj 24 NUvi ga cw iZ UvKv mwy eav Mn YKvixi wnmve Rgv `qv me nQ| Ab-jvBb cwZ Pvjy nIqvZ we`k Kgi Z evsjv`kxì ga `viY Drmvni mw nqQ| Avi ZtB G _K md y j cvIqv hvQ| wewfb `k _K cv iwgUi wP bxP `Lvbv njvt
remittance inflow is shown below:
ForeignRemittance:2009
Bahrain 8% 4% 13% 2%5%2% 14% 1% Kuwait Oman K.S.A. U.A.E. Malaysia Singapur 51% U.S.A. Others
f. Treasury Operation
Fund Management Division has been playing a pivotal role in the advancement of the Bank. Fund Management Division contributed a significant share to the total income of the bank through its treasury operations both in money market and
P . U R vwi Acvikb
AMY x evsK wjwgUWi AMM wZi Znwej eev c bv wefvM AMYx fw~ gKv cvjb KiQ| D wefvM gvwb gvKU I e`wkK evwYR gvKU UR vix Kvh gi gvag evsKi gvU Avq wmsnfvM Ae`vb iLQ| D wefvMK
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foreign exchange market. The treasury operation of the bank has become a major profit centre of the bank and made significant contribution. The treasury of the Bank was a major market leader both in the inter bank money market and foreign exchange market. On the other hand with an efficient and prudent handling of Fund Management Division, a functioning and effective Asset Liability Committee regulates and articulates the banks total need, exposures, rates and strategy for all Asset Liability Management. An effective ALCOM process has enabled the bank to effeciently manage and projects its asset and liabiity flows, resulting in a smooth flow of all funding requirements of the bank while maximizing all profit opportunities. In fact through the optimal management of assets and liabilities, the treasury was the highest profit centre for the bank in 2009. The good news for the year under review was that the Division earned TK.412.81 crore (Money Market Tk.388.60 crore and Foreign Exchange Tk. 24.21 crore) through prudent treasury operation.
Item wise income of treasury is shown below: (Amount in crore Taka) Sl # 1 2 3 4 Total Item Securities Treasury Repo Underwriting commission Call Loan / Other Bank Deposit 390.43 208.06 212.10 23.57 20.85 27.33 1.36 1.69 0 share Bill & Year 2009 290.34 75.16 2008 137.15 48.37 2007 75.94 108.83
evsKi AbZg Avqi Drm wnmve MY Kiv nq| Af ixY gvwb gvKU Ges e`wkK evwYR gvK U UR vi x wefvM nQ gvKU jxWvi|
Aciw`K, `Zv I wePYZvi mv_ cwiPvwjZ Znwej i m` I `vq eev cbv wefvMi mnvqZvq GKwU KvhK eev cbv KwgwU m` I `vq eev cbvmn evsKi gvU y ì nvi Ges Kkj Znweji Pvwn`v, GcvRvi, m wbavi Y Ki| dj m` I `vq ce vn KvhK ifve wbqY Ges Zvi c cY Kiv hvQ| eyZ, m` I `vq eev cbvi gvag 2009 mvj UR vix wefvM mev P gb y vdv Ki| G eQii Rb myLei nj wePY Znwej eev cbvi gvag G wefvM 412.81 KvwU UvKv (gvwb gvKU 388.60 KvwU UvKv Ges e`wkK wewbgq 24.21 KvwU UvKv) Avq KiQ|
LvZwfwK URvix wefvMi Avq wb c` kb Kiv njt

(KvwU UvKvq) g # 1 2 3 4 gvU LvZ wmwKDwiwUR kqvi Ges wWevi URvix wej Ges wicv Avvi ivBwUs Kwgkb Kj jvb/Abvb evsK wWcvwRU eQi 2009 290.34 75.16 1.36 23.57 390.4 3 2008 137.15 48.37 1.69 20.85 208.06 2007 75.94 108.83 0 27.33 212.10
and debenture
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g. Loans and Advances

The loans and advances of the Bank registered an impressive growth during the year 2009. The total loans and advances as on 31 December 2009 was Tk. 12,223.61 crore compared to as against Tk. 11,336.23 crore at the end of previous year, showing an increase of 7.82 per cent. The advance portfolio of the Bank is well diversified and covers funding to a wide spectrum of business and industries including agro-based and agroprocessing, ship scrapping, steel & engineering, paper & paper products, chemicals, construction, real estate and loans under consumers credit schemes, country. Sector-wise position of loan and advances as on 31 December 2009 is given below:
(Amount in crore taka)
Sectorwise of Loans Agriculture and Fishery Jute and Jute goods Transport, Communication Ship Breaking Textile and Readymade Garments Food and Allied Industry Construction and Engineering Pharmaceuticals and Chemicals Leather Power & Energy Professional and Services Housing Service Wholesale/ Retail Trading Personal Loan (staff loan and other personal loan Others Total 3,152.71 12,223.61 79.11 1,269.09 509.62 235.52 320.19 464.47 7.48 93.02 1,370.80 2,011.98 1,293.56 Storage and 2009 694.33 650.24 71.49 2008 643.18 678.24 80.60 73.37 1,373.94 471.87 218.42 296.95 440.49 6.94 86.27 1,126.98 1,865.92 1,169.36 2,803.70 11,336.23
Q.FY I AwMg
2009 mvji FY I AwM gi cwigvY DjL hvM nvi ew cqQ| AvjvP mvji kl FY I AwM gi gvU cwigvY wQj 12,223.61 KvwU UvKv| ce ~ e Zx eQi Gi cwigvY wQj 11,336.23 KvwU UvKv| G ce w i nvi 7.82 kZvsk|
evsKi FYi AvIZvq AvQ wewfb kY xi FY Ges Zv wewfb LvZ mvwjZ| eemv I wki hme DcLvZ Zv mvwjZ c mwms wk, nqQ mjv nQ t GvMv eBRW Ges GvMv Wvm, kxc wcs, wj Ges Bwwbqvwis, ccvi I ccvi cv KwgKvjm, wbgv Y, Avevmb, KbwRDgvi wWU xg, wewfb eemvwqK Kvh g, PvKixRxwe FY Ges bvix D`vv|
various
trading
businesses,
service-
holders loan and women entrepreneurs of the
LvZ wfwK FY I AwM gi weeiY wbict

(KvwU UvKvq) FYi aib Kw l I grm cvU I cvURvZ è cwienb, gR` y I hvMvhvM wkc ew Ks e I Zix cvkvK Lv` Ges mswk wk wbgv Y Ges c K k j Ila y I imvqb Pvgov LvZ we` y r LvZ ckv I mevLvZ Avevmb I mev cvBKvix I LyPiv eemv ewMZ FY Abvb gvUt 2009 694.33 650.24 71.49 79.11 1,269.09 509.62 235.52 320.19 464.47 7.48 93.02 1,370.80 2,011.98 1,293.56 3,152.71 12,223.61 2008 643.18 678.24 80.60 73.37 1,373.94 471.87 218.42 296.95 440.49 6.94 86.27 1,126.98 1,865.92 1,169.36 2,803.70 11,336.23
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The
Bank
attaches
top
most
importance
to
FYi YMZ gvb ivq evsK mev P iZ `q| evwYwRK I eemvwqK FY `qvi mgq jws wi GvbvjvBwmm h_vh_fve Kiv nq| 2009 mvji kl FYi wPwU wbic wQjt
acquisition of quality assets and does appropriate lending risk analysis while approving commercial and trade loans to clients. The advances matrix of the Bank as on 31 December 2009 was as follows:
h. Industrial Credit
Agrani Bank Limited has been playing a significant role in supporting the Government policy of rapid industrialisation. The Bank continues its specialized services for financing medium and long-term capital finance as well as short-term working capital finance to industrial projects. The total outstanding against industrial project loan, excluding working capital loan as on 31 December, 2009 stood at Tk. 2,304 crore which is 18.85 per cent of the Bank's total loan portfolio. The Bank also extended credit facilities economy. to all important sub-sectors of the
R.wk FY
miKvii ` Z wkvqb bx w Z eve vqb AMY x evsK hvMfve fw~ gKv iL PjQ| AMY x evsK gag I `xN DjL gqvw` wk FY hvMvbmn wk cK PjwZ gj ~ ab mieivn Ki _vK| PjwZ gj ~ ab ev` ay wk cK c` FYi cwigvY eQi kl wQj 2,304 KvwU UvKv hv gvU FYi 18.47 kZvsk| | iZc Y ~ A_b xwZi me DcLvZ AMY x evsKi FY mwy eZZ wewfb DcLvZI evsK FY weZiY KiQ|
Photos 1. 2. 3. Energy-power BSRM Wisteria
i. Credit Lines
Agrani Bank Limited utilised IDA Credit, Exim Credit, ADB Loan, OPEC credit and different foreign credit lines under BSCIC Consortium for onward
S.wWU jvB
evsKi wbR^ Drm _K A_v qb ev` evsK weGmwmAvBwmi Aaxb AvBwWG wWU, Gwg wWU, GwWwe wWU, IcK wWU I Abvb wWUi UvKvI A_v qb eenvi Ki| Gme
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64
lending in addition to Banks own sources. The balance outstanding against the loans and the number of projects funded are appended below:
FYi AvIZvq c` FYi msLv I FYi cwigvY bxP DjL Kiv njvt
Types of fund
Number of Projects
Amount Outstanding (crore taka)
Znweji aib e`wkK Znwej AvfZixb Znwej
cKi msLv 258 738
FY wwZ (KvwU UvKvq) 41.39 1719.96
Foreign Fund Local Fund
258 738
41.39 1719.96
j. Syndication Loan
The Bank continues its participation in syndicated lending arrangements. The bank so far sanctioned Tk. 761 crore upto December, 2009 as against Tk. 598 crore in previous year under this credit programme from its own source. Outstanding balance of this loan amounted to Tk. 466 crore as on 31 December, 2009 as against Tk. 416 crore in the last year.
T.wmwKUW jvb
wmwKUW jvb evsK AskMn Y Ki _vK| evsK wbR^ A_ _K 50wU cK gvU 761 KvwU UvKv gi y KiQ| weMZ eQi Gi cwigvY wQj gv 598 KvwU UvKv| MZ eQi wmwKUW jvbi AvIZvq eKqv ww Z wQj 416 KvwU UvKv| G eQi wWm ^ i Gi cwigvY `vo u vq 466 KvwU UvKv|
k. SME and Micro Credits

Beyond conventional banking, the Bank has also been participating in several SME programs through its own efforts and in collaboration with different national and international agencies like Bureau of Manpower Bangladesh Employment Small and Training (BMET), Industries Bangladesh Rural Development Board (BRDB), and Cottage Corporation (BSCIC), NGOs, Bangladesh Rural Advancement Committee (BRAC), Association for Social Advancement (ASA) and (IFAD), other NGOs including MIDAS, CDF, International Fund for Agricultural Swedish Development Norwegian Agencies Agency for Development International Co-operation (NORAD), Development
U.GmGgB Ges ` z FY (gvBv wWU)

mvaviY evswKs Kvhv ejxi evBiI evsK GmGgB I ` y FY w`Q| wbR^ dv _K Ges Abvb `kx I we`kx cw Zvbi m h_fve wgj evsK GB FY c` vb KiQ| hme cw Zvb gU Gi ga AvQ mjv nQt e y iv Ae gvbcvIqvi Ggcq Gv Uw bs (weGgBwU), evsjv`k iivj WfjcgU evW wR Kcv ikb (weAviwWwe), evsjv`k j G KUR Bv ~ t evsjv`k iivj GvWfvgU (weGmwmAvB), GbwRI mgn KwgwU (e vK), Gmvwmqkb di mvkvj GWfvgU (GGmG), vjPvij WfjcgU (BdvW), BUvibvkbvj dv di GwMK ik (Gb I Avi GwW), biwRqvb GRw di WfjcgU Kcv mB y wWk BUvibkbvj WfjcgU GRwR (GmAvBwWG) wegvPbi Dk miKvii BZvw`| AMY x evsK `vwi` z I gvSvwi D`vvì mvnvh c` vb, Drcv`b ew , cvkvcvwk ` eKviZ gvPbmn wewfb D`vM Mn Y KiQ|
(SIDA) etc. These are aimed at reinforcing efforts
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of the Government to meet strategic objectives of alleviating poverty of the rural poor, supporting small and micro enterprises/ entrepreneurs, increasing output, easing unemployment problem and strengthening the rural financial market. So far, the beneficiary coverage of SME and Micro Credit operation came out under 14 programmes is 88,405 and 5,39,458 respectively.
G ch GmGgB I gvBvwWU cv Mv gi Aaxb cwiPvwjZ 14wU Kgm w~ Pi Aaxb wewfb LvZi h_vg 88,405 Ges 5,39,458 Rb ` y D`vvK mvnvh Kiv nqQ|
Setting a goal to promote country's business expansion, employment generation and development of private sector EGPRP (Employment Generation Project for the Poor) Project under International Fund for Agricultural Development (IFAD) have been successfully operated in the Bank since 1995-96. With the financial assistance from Agrani Bank Limited and Norwegian Agency for Development Co-operation (NORAD) SEDP Project (Small Enterprises Development Project) have been in operation in greater Mymensing and Faridpur districts since 1995-96. The aim of the project is to develop the standard of living through income and employment generation by giving financial and advisory assistance to the small labour intensive firms. Action is underway to turn the project into a wholly owned subsidiary company of the bank in the year 2010.
1995-96 mvj _K G me KvR mdjZvi m Kiv nQ| `ki eemv-evwYR mcm v ib, eKviZ gvPb Ges emiKvwiLvZi Dbq b BUvibkbvj dv di GwMK vjPvivj y i WfjcgUi c R-Ggcq gU Rbvikb c R di `v cI mdjZvi m cwiPvjbv Kiv nQ|
x 1995-96 mvj _K en i gqgbwmsn I dwi`ci y Aj AMY evsKi mnvZvq Ges biIqwRqvb GRw di WfjcgU Kcv ikb-Gi mnvqZvq j GUvicv BR WfjcgU c R/Pvjy AvQ| c Ri Dk Avq evovbvi gvag gvb y li Rxebavibi gvbvbq b Kiv | 2010 mvji ga GB wefvMK evsKi mY ~ gvwjKvbvaxb mvewmwWqvwi Kvvbx wnme MVbi KvR PjQ|
l. Agriculture and Rural Credit

The Bank kept financing one of the countrys priority sectors agriculture. It started accommodating millions of the rural poor with the mainstream development activities in areas of livestock, fishery, poultry, and nursery as well as
V.Kw l Ges cjx FY

evsK `ki AMv waKvicv LvZ Kw lZ A_v qb AevnZ
y Mx iLQ| miKvii bxwZgvjvi m wgj iL evsK nvm u gi Z ~ cvjb, grm Pvl Ges bvmvw i eemvq FY w`Q| Kw lewnf KvRI evsK FY `q| Gme cK i Dk nQ `vwi`
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many off-farm projects and the like in line with the government policies. Poverty alleviation through income generating activities is one of the strategic priorities that the Bank has kept pursuing to make the institutional support available to marginal farmers, small entrepreneurs, distressed and destitute women as well as unemployed youths. Upto 2009, the bank disbursed Tk. 3162.64 crore among 3,844,342 borrowers through 54 programs.
wegvPb | hvZ gvb y li Avq evo Zvi w`K ekx Rvi `qv nq| ` y I gvSvwi Kl K, Amnvq gwnjv Ges eKvi he y Kiv hvZ mnvqZv cvq Zv `Lv Gme cK i AbZg Dk| 2009 mvj y K ch 54 Kgm w~ Pi Aaxb evsK 3,844,342 Rb `wi` gvbl 3162 . 64 KvwU UvKv c` vb KiQ|
Photos fisheries & poultry
m. Loan Classification and Provisioning

Reduction in the number and value of classified loans and advances has been a major priority of the Bank, along with maintaining a commensurate provision. adequate Various measures initiatives adopted were to taken achieve and the
W.FY kY xwebvmKiY Ges cw fkb

kY xwebvwmZ FYi wnmve msLv Ges FYi cwigvY nv m Kiv I KvR| G chv cw fkb ivLv evsKi GKwU AMv waKvi cv Y Kiv nqQ| mev P dj cvIqvi Rb wewfb D`vM Mn ce ~ Z b kY xwebvwmZ FY Av`vqi wbweo Z`viKx Ges z kY xwebvwmZ FYi Abe y Zx Kvh g Rvi`vi Kiv nqQ| bZb xwebvwmZ FYi mw hvZ bv nq mUvI `Lv nq| dj kY cwigvY nv m cvq| 2008 mvj G aibi FYi cwigvY wQj gi 22.48%)| mB 2,548.92 KvwU UvKv (gvU FY I AwM u vq 2,373. 92 KvwU UvKv(gvU FY I j Zv 2009 mvj `vo AwM gi 19.42%)hv evsjv`k evsKi GZ`msvZ wbqg bxwZi AvIZvq wnmvevqb wbavw iZ nqQ|
optimum result. The main focus was on the intensive and strict follow-up in respect of recovery of previous classified and overdue loans along with arresting new classification there of. As such the classified loans reduced to Tk 2,373.92 crore(19.42% of total loans and advances) by the end of 2009 against Tk 2,548.92 crore(22.48% of total loans and advances) at the end of 2008 which has been calculated as per Bangladesh Banks rules and norms regarding loan classification.
n. Recovery of Non-performing Loans

The Bank has intensified its efforts to reduce classified and overdue loans and take appropriate measures for converting non-performing loans into
X.bb-cvidiwgs FY Av`vq
mi kY xwebvwmZ FYi cwigvY Ges IfviwWD FYi cwigvY nv Rb evsK D`vM Mn Y Ki hvZ bb-cvidiwgs FYi cwigvY nv m cvq| GB Dk gvV I mì ì chv q gwbUwis-Gi KvR
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performing ones. As part of these efforts intensive monitoring both at the field and Head Office levels was carried out. A Debt Collection Unit was also set up inside the Bank for effective follow-up and recovery of loans. 6 private Debt Collection Agents were appointed to recover non-performing and written-off loans. Recovery position of classified and overdue loans during 2009 is shown below:
Rvi`vi Kiv nq| FY Av`vq Ges Av`vqi KvR djv-Avc Kivi Rb evsKi fZiI WU KvjKkb BDwbU v cb Kiv nq| bb-cvidiwgs FY Ges AejvcbKZ FY Av`vqi Rb QqwU emiKvwiWU KvjKkb GRU wbqvM `qv nq|
2009 mvj IfviwWD Fb Av`vq cwiww Z wQj wbic;
Type of Loans
Outstanding Amount as on 31.12.2008
Annual Target of Recovery (2009
Amount Recovered in 2009 (in crore taka)
Percentage of recovery against target
Cash Classified Loan Overdue Loan Total 2,549 1,500 197
Others* 415
Write-off 137
Total 749 50%
536 3,085
536 2,036
232 429
321 736
137
553 1,302
100% 64%
Other recovery consists of rescheduling renewal and weaver of partial applied and unpaid interest.
o.Merchant Banking Unit

As part of its commitments and also its plan to diversify business, Agrani Bank Limited has embarked upon a new initiative by introducing Merchant Banking. The Bank formally started its Merchant Banking operation from 3rd September 2009. Earlier it obtained Merchant Banking license from Securities andExchange Commission on 23 March 2009. Objectives of Merchant Banking Unit include: To become the largest Merchant Bank in Bangladesh by operating in an efficient and effective manner. To expedite the development of capital market by maintaining its depth, stability, reliability and liquidity . To raise the small and medium investors
Y. gvP U evswKs BDwbU

y vqx AMY x evsK wjwgUW evswKs eemvq ewPvqbi bxwZ Abh bZb z mev wnmve gvP U evswKs BDwbU Pvjy KiQ| 2009 y vwbK hvv i mvj 3iv mi ^ gvP U evswKs BDwbU Avb U Ki| Kvh g ii AvM evsK 2009 mvj 23k gvP gvP Ki| evswKs wnmve KvR Kivi jvBm ARb
gvP U evswKs BDwbUi Dk: ` I KvhK ix eev cbvi gvag mePq eo gvP U evsK wnmve AvZcK vk Kiv| gj ~ ab evRvii Dbq b fwy gKv cvjb| ` z I gvSvwi D`vvì ga mPZbZv ew I wmwKDwiwU Pvwn`v ew Kiv| ix cvUd wjI DPZi ckv`vwiZ ew QvovI KvhK
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awareness and eagerness as well as enhance the demand of securities. To attain efficiency in portfolio management in addition to achieving excellence in professionalism. To reduce the volatility of the market by encouraging the companies to introduce new issues and contribute towards deepening of the market. Activities include: Issue Management Underwriting Portfolio Management
eev cbvq `Zv ARb Kiv| bZb z Bm y eev cbv I gvK Ui MfxiZv Avbqbi gvag Aww ZkxjZv ì ~ xKiY|
Kvh g: cbv Bm y eev AejLb cvUd wjI eev cbv
p. Help Desk
Agrani Bank Limited provides help desk service for their customers. Help desk department has been designed to remain open for 24 hours. Any problem can be primarily resolved by help desk.
Z. n W
vb AMY x evsK wjwgUW n Wi gvag Mv nKì mev c` Ki| n W 24 NUv Lvjv _vK| h Kvb aibi mgmvi cv _wgK mgvavb n Wi gvag c` vb Kiv nq|
q. Branch Expansion
The total number of Bank branches presently stands at 867. It has been planned to open more branches in commercially important places of the country in the upcoming years so that the Bank can reach its service to the wider group of clients all over the country.
_. kvLv mcm v iY
eZg vb evsKi kvLv msLv 867 wU| AvMvgx w`b `ki iZc Y ~ me evwYwRK GjvKvq kvLv Lvjvi cwiKbv iqQ hvZ mvaviY gvbl y K mwy eav `qv hvq Ges Mv nKì Ni Ni evswKs mev cQ u `qv hvq|
Financial Performance
a. Total Operating Income
The Bank's total operating income stood at Tk. 1,028.35 crore in 2009 as against Tk. 973.93 crore in 2008 which indicates an increase of Tk. 54.42
Avw_K d jv d j
K. gvU AcviwUs Avq
2009 mvj evsKi AcviwUs Avq wQj 1,028.35 KvwU UvKv| ce ~ e Zx eQi Gi cwigvY wQj 973.93 KvwU UvKv| ew i cwigvY 54.42 KvwU UvKv A_vr G ce w 5.59 kZvsk|
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69
crore (i.e. 5.59 per cent higher) over the last year.
b. Total Operating Expenditure

The Bank's total operating expenditure stood at Tk. 383.90 crore in 2009 as against Tk. 340.95 crore in 2008 which indicates an increase of Tk. 42.95 crore (i.e.12.60 per cent higher) over the last year. This is mainly due to the enhancement of staff salary in line with the govt. policy.
L. gvU AcviwUs eq
j 2008 mvji 340. 95 KvwU UvKv gvU AcviwUs eqi 2009 mvj evsKi AcviwUs eqi cwigvY wQj 383.90 KvwU UvKv| eq ew i cwigvY 42.95 KvwU UvKv | G ce w 12.60 kZvsk|
c. Net Interest Income

The Banks net interest income is Tk.403.88 crore in 2009. Interest earned from loan and profit earned from investment remained the principal component of interest income. However interest cost of deposits was the main component of interest expenses.
M. bxU m` y Avq
2009 mvj evsKi bxU m` y Avqi cwigvY wQj 403.88 KvwU UvKv| AvgvbZi eq nv m cqQ, GKBfve FYi Ici cv y Uv wQj FYi m` y I gvm gvm nv m cqQ| m` y Avqi ` m` y | eqi ca vb LvZ Ici cv m` y Ges wewbqvMi Ici cv y | wQj Aek AvgvbZi Ici c` m`
d. Operating Profit
During 2009, the Bank's total operating profit before amortization, provision and tax stood at Tk. 644.44 as against net profit of Tk. 632.97 crore in 2008.
N. cwiPvjb gb y vdv
2009 mvj evsKi cwiPvjb gb y vdvi (GvgiUvBRkb, mwwZ ~ e Zx Ges Kii c ~ e) cwigvY wQj 644.44 KvwU UvKv hLvb ce eQi Gi cwigvY wQj 632.97 KvwU UvKv|
e. Profitability
The Bank earned an operating profit of Tk. 511.49 crore before charging any provision and taxes during the year 2009 as against an operating profit of Tk. 500.02 crore in the previous year which indicates that the Bank has increased its profitability significantly during the year under review compared to the prior year. Income tax amounting to TK. 214.92 crore was charged against profit during the year 2009. Thus a net profit (after provisions and taxes) during the year 2009 stood at Tk. 110.84 crore as against a net profit of Tk. 264.62 crore in the previous year.
O. jvfc` Zv
2009 mvj cw fkb ce ~ Ges Kice ~ AcviwUs gb y vdvi cwigvY wQj 511.49 KvwU UvKv| ce ~ e Zx eQi Gi cwigvY wQj y vdv gB 500.02 KvwU UvKv| Gi A_ evsKi AcviwUs gb ew cvQ| 2009 mvj AvqKii Rb 214.91 KvwU UvKv y vdvi cw fkb Kiv nqQ| Gi dj mwwZ Ges Ki cieZx gb ~ e Zx eQi Gi cwigvY cwigvY `v u wo u qQ 110.84 KvwU UvKv| ce wQj gv 264.62 KvwU UvKv|
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f. Appropriation of Profit
During the year 2009 the Bank earned Tk. 511.49 crore before provision and tax which has been appropriated in the following manner.
(Amount in Crore Taka)
Particulars Profit/(Loss) before provision & tax Provision for loans and advances Other provision (Including Incentive Bonus) Total provision Net profit/(loss) before Tax Provision for tax: Current tax Deferred tax Total provision for tax Net profit/(loss) after tax Add: Retained surplus from the previous year 170.00 44.92 214.92 110.84 276.69 387.53 Appropriation: Statutory Reserve General Reserve Bonus Share Issue Retained surplus 248.42 73.96 65.15 276.69 57.81 24.43 24.43 264.62 69.88 334.5 2009 511.49 90.95 94.78 185.73 325.76 2008 500 185.12 25.85 210.97 289.04
P. gb y vdvi eUb
2009 mvj evsK Ki I mwwZ avh ce ~ gb y vdv ARb Ki 511 . 49 KvwU UvKv| Gi eUbi bxP `Lvbv nj:
(KvwU UvKvq) 2008 500 185.12 25.85 210.97 289.04 24.43 24.43 264.62 69.88 334.5 57.81 248.42 73.96 276.69
weeiY Ki I mwwZ avh ce ~ gb y vdv FYi Rb mwwZ Abvb mwwZ (evbvm mn) gvU mwwZ Ki ce ~ e Zx bxU gb y vdv Kii Rb mwwZ PjwZ Ki cieZx eQii Ki Kii Rb gvU mwwZ: Ki cieZx bxU gb y vdv hvM: ce ~ e Zx eQii iwZ gb y vdv wefvRb: msiwZ Znwej mvaviY msiwZ Znwej evbvm kqvi Bm y iwZ D gb y vdv
2009 511.49 90.95 94.78 185.73 325.76 170.00 44.92 214.92 110.84 276.69 387.53 65.15
g. Capital Adequacy Ratio

As per the provisions of Section 13(2) of the Bank Companies Act 1991 and BRPD circulars 01, 10, 05 and 11 dated 08 January 1996, 24 November 2002, 14 May 2007 and 14 August 2008 respectively issued by Bangladesh Bank, adequate capital needs to be maintained by all commercial banks to operate the Banking activities smoothly. The Bank maintained core capital of Tk. 710.24 crore as against required Tk. 459.05 crore (7.74% of RWA of Tk. 9,181.09 crore as against required 5% of RWA) and total actual capital of Tk. 991.45 crore as against required Tk. 918.11 crore (10.80% of RWA of Tk. 9,181.09 crore as against required 10% of RWA or Tk. 200 crore, whichever is higher). Thus there was a total capital surplus of Tk. 73.34 crore with a core capital surplus of Tk. 251.19 crore.
Q. gj y ab chv Zv Abc y vZ
evsK Kvvbx AvBb-1991 mvji aviv 13(2) Ges evsjv`k evsKi weAviwcwW mvKj z vi (bs 01, 10, 05 I 11 ZvwiL h_vg 8 Rvbq y vix, 1996, 24 bfi ^ 2002, 14 g 2007 Ges 14 AvM 2008) Abh y vqx mKj evwYwRK evsKK chv ~ ab ivLvi K_v gj ~ ab Abc y vZ iv KiZ nq| evsKi Kvi gj 459.05 KvwU UvKv| wK evsK ivLZ ciQ 710.24 KvwU j 9,181.09 KvwU UvKv| wi IqUW GvmUi 5 kZvski UvKv wi IqUW GvmUi 7.74 kZvsk iwZ nqQ| gvU msiwZ gj ~ ab nQ 991.45 KvwU UvKv| A_P ivLvi K_v wQj y vi 200 KvwU A_ev wi gv 918.11 KvwU UvKv| wbqgvbm ~ ab ivLvi IqUW GvmUi hvnv ekx Zvnvi 10 kZvsk gj j evsK iLQ wi IqUW GvmU 9,181.09 K_v| mB gj ~ ab nQ 73.34 KvwU UvKvi 10 kZvsk| G wnmve D nQ 251.18 KvwU UvKv| KvwU UvKv| Kvi KvwcUj D
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Details of capital adequacy are given below:

(Amount in Crore Taka)
Particulars Total Assets (net) including Off-Balance Sheet Items (net). Total Risk Weighted Assets Minimum Required Capital (10% of Risk Weighted Assets ) Minimum required core capital ( 5% of RWA) Actual Capital Held: Core Capital (Tier I) Supplementary Capital (Tier II) Total Capital surplus/(shortfall) Capital Adequacy Ratio (%): Core Capital (against standard of 2009 18,314.36 9,181.09 918.11 2008 17,755.99 8,051.07 805.11
gj ~ ab chvZvi wev wiZ weeiY bxP `qv nj: weeiY gvU mc` (bxU) Ad evj kxUmn (bxU) gvU wi IqUW GvmUm wbZg gj ~ ab (wi IqUW GvmUi 10%) iwZe wbZg Kvi KvwcUvj (AviWweD Gi 5%) gj ~ ab iwZ Kvi KvwcUvj (Uvqvi-1:) mvwc gUvwi KvwcUvj (Uvqvi-2) gvU D gj ~ ab/NvUwZ gj ~ ab chvZv Abc y v Z (% ) Kvi KvwcUvj (5% c qvRbxq) mvwc gUvwi KvwcUvj Kvi KvwcUvj (Uvqvi-1): cwikvwaZ gj ~ ab wewae msiwZ Znwej mvaviY msiwZ Znwej iwZ gb y vdv gvU Kvi KvwcUvj (Uvqvi-1) mvwc gUvwi KvwcUvj (Uvqvi-2) AkY xwebvwmZ FYi Ici cw fkb Ad evj bxU GcvRvii Rb cw fkb wifj y qkb mvicv m Ae GBPwUGg wmwKDwiwUR-(50%) GP BKzqvjvBRkb GKvDUm& gvU mvwc gUvwi KvwcUvj (Uvqvi-2) 496.84 138.94 0.50 73.96 710.24 114.09 52.97 103.24 10.91 281.21 2009 18,314.36 9,181.09 918.11 459.05 991.45 710.24 281.21 73.34 10.80 7.74 3.06
(KvwU UvKvq) 2008 17,755.99 8051.07 805.11 402.55 737.75 599.39 138.36 (67.36) 9.16 7.44 1.72 248.42 73.78 0.50 276.69 599.39 0 115.66 6.43 5.36 10.91 138.36
459.05 991.45 710.24 281.21 73.34 10.80% 7.74% 3.06%
402.55 737.75 599.39 138.36 (67.36) 9.16% 7.44% 1.72%
minimum 5%) Supplementary Capital Total Core Capital (Tier - I) Paid up capital Statutory Reserve General Reserve Retained Earnings Total Core Capital ( Tier-I) Supplementary Capital (Tier - II ) General Provision maintained against UC loans Provision Exposure Revaluation Surplus on HTM Securities @ 50% Exchange Equalization accounts Total Supplementary capital ( Tier-II) for Off Balance Sheet
496.84 138.94 0.50 73.96 710.24
248.42 73.78 0.50 276.69 599.39
114.09
115.66
52.97
6.43
103.24 10.91 281.21
5.36 10.91 138.36
h. Guarantee Business
The Bank issued guarantees amounting to Tk. 160.81 crore during the year 2009 compared to Tk.111.71 crore in the previous year registering a growth of 43.95%. The guarantees were issued in favor of different government authorities, autonomous bodies, corporations, multi- national companies etc. against proper securities on behalf of clients of the Bank.
R. MvivwU eemv
2009 mvj evsK 160.81 KvwU UvKvi MvivwU Bm y Ki| w i nvi ce ~ e Zx eQi Gi cwigvY wQj 111.71 KvwU UvKv| ce 43.95 kZvsk| h_vh_ RvgvbZi wecixZ evsK Gme MvivwU Bm y Ki Mv nKìK| Gme Mv nK nQ: wewfb miKvwi cw Zvb, v ^ qkvwmZ msv , Kcv ikb Ges eRvwZK Kvvbx|
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i. Investment
The investment portfolio of the Bank at the end of year 2009 was Tk. 4,089.72 crore as against Tk. 2,932.98 crore in the previous year, registering a growth of 39.44%. The Bank has always given emphasis on high yielding investments and maintains Statutory Liquidity Requirement (SLR) as fixed by Bangladesh Bank vide BRPD circular # 11 dated 25 August 2005 and circular # 12 dated 25 August 2005. The portfolio of investment of the Bank as on 31 December 2009 are shown below :
S. wewbqvM
evsKi gvU wewwbqvMi cwigvY wQj 4,089.72 KvwU UvKv| y iv s ce ~ e Zx eQi Gi cwigvY wQj 2,932.98 KvwU UvKv| mZ vbKvix G ce w i nvi 39.44 kZvsk| DPm` y c` wewbqvMi cw Z eiveiB evsK bRi w`qQ| evsjv`k evsKi weAviwcwW mvKj z vi bs 11 ZvwiL 25 AvM 2005 I bs 12 ZvwiL 25 AvM 2005 Abh y vqx evsK wewae Zvij (UU z wi î wjK BwWwU iwkI) iv Ki hvQ| 2009 mvji 31 wWm evsKi wewbqvM cwiww Z wQj wbic:
Types of Securities Treasury bills Treasury Government Securities other bonds Inter REPO Prize bonds Sub total (A) Nongovernment Securities Debentures Shares Sub total (B) Total (A+B) Bank &
(Amount in Crore Taka) 2009 2008 886.23 2,383.33 525.00 1.31 3,795.87 165.50 128.35 293.85 4,089.72 1,024.57 1,685.13 1.31 2,711.01 194.00 27.97 221.97 2,932.98
(KvwU UvKvq)
wmwKDwiwU aib miKvwi
2009 UR vwi wej UR vwi I Abvb e Av: evsK I wicv cv BR e Dc gvU: (K ) wWevi kqvi Dc gvU : (L ) 886.23 2,383.33 525.00 1.31 3,795.87 165.50 128.35 293.85 4,089.72
2008 1024.57 1685.13 1.31 2711.01 194 27.97 221.97 2,932.98
emiKvwi
gvUt (K+L)
GRAPH: INVESTMENT- 2009
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Automation and Modernization

a. Focus
The day to day activities and all transactions of our Bank are being automated. The Bank is using some renowned banking software for daily operation. Note counting machines, internet etc are being used in all business and operational activities. We are considering moving on to online banking system very soon.
AUvgkb Ges Avawy bKvqb

K. dvKvm
evsKi `bw`b KvR Ges mKj jb`b q ^ swq Kiv nQ| `bw`b KvRi Rb evsK wKQy cP wjZ mdU & Iqvi eenvi Ki| `bw`b evswKs Ges Abvb KvR bvU MYbv gwkb Ges B-gj eenvi Kiv nQ| Le y kxNB Ab-jvBb evswKs G hvIqvi cwiKbv Kiv nQ|
b.Planned and Increased Use of ICT
L. Z_ I hvMvhvM ch wy i cwiKwZ Ges ewa z eenvi

Bbdigkb Ges KwgDwbKkb UKbvjwR (AvBwmwU) me kl Z_ I vb m ^ AMY x evsK me` vB mRvM| `ki evswKs AvBwmwU eenvi evsK AMY x fw~ gKv ivLZ ci MweZ | evswKs LvZ h Zxe cw ZhvwMZv we`gvb ZvZ Z_ z bZb z cY ch wy welq `Zv I Zvi eenvi AvgvìK bZb xY Dv eb mvnvh KiQ| DbZ Mv nK mev, Afi Drcv`bkxjZv Ges YMZ gvb BZvw`K gvbmZ ivLZ Z_ wy ch wy mvnvh KiQ| G KviY evsK AwaKZi Z_ ch eenvi Ges gvbRgU Bbdigkb wmmUgm (GgAvBGm) eenvii w`K GwMq hvQ|
Agrani Bank Limited always keeps itself abreast with the latest ideas and approaches developed in areas of Information and Communication Technology (ICT). The bank feels proud to be a pioneer in introducing computer technology in the banking sector of the country. In the face of increasingly fierce competition, the efficiency gains and speed of IT have paved the way for exploring new sources of advanced and innovative products. It helps standardise the quality of work, internal productivity and improved customer services. However, the Bank is moving ahead to realise its plan for increased use of IT and Management Information Systems (MIS).
c.Branch Computerization
The Bank has made remarkable strides in terms of branch automation. So far, 266 branches out of total 867 branches using computer technology having LAN-based branch-banking software. Rest of the branches are having at least 1(0ne) desktop computer with internet connectivity along with Online Foreign Remittance Payment Software and GL Software capable of making instant payment of foreign remittance to the beneficiaries and
M. kvLv KwDUvivBRkb
kvLv chv qi KvR KwDUvi eenvi AMY x evsK ek GwMq MQ| 867wU kvLvi ga BwZgaB 266wU kvLvZ KwDUvi v cb Kiv nqQ hvi gvag ev evswKs mdUIqvi-jvb (GjGGb) eeZ nQ| evKx kvLvjvi c ZKwUZ Kgc GKwU WUc KwDUvi mwy eav ivLv nqQ| GZ AvQ BUvibU mwy eav| v cb Kiv nqQ Ab-jvBb dib iwgU cgU mdUIqvi Ges wRGj mdUIqvi| Gi dj ZvrwYKfve we`k _K cvVvbv UvKv mwy eav Mn YKvwi wnmve Rgv nq| AwaK `wbK wnmve weeiYx Ges jvf-wZ wnmveI
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preparing daily Statement of Affairs and Profit and Loss statement besides making other day-to-day correspondences. The computerization scenario at the branch level is given below:
1. 2. LAN based Computerized Branch Branches using stand alone PC (with MsOffice, On-line Remittance Software and General Ledger). Total 266 601
Z Kiv nq G mdUIqvi viv| kvLv KwDUvivBRkbi wP c wbg `qv njv:
1 2
jvb wfwK KwDUvivBRW kvLv v Gjvb wcwm myweav eenviKix kvLv (Gg-Awdm, AbjvBb, iwgU mdUIqvi Ges Rbvij jRvi) gvU
266 601
867
867
Following are the statistics of IT facilities among 867 branches :

1. 2. Branches having SWIFT facility.
branches/circles/zonal
offices and Head office Divisions who have the additional
867wU kvLvi ga kvLv/mvKj /Rvb Ges ca vb Kvhv jqi wefvMmg ~n wbwjwLZ evowZ myweav iqQt
14 40 5
ATM booths in bank's shared network with 7 (Seven) other banks
3. 4.
ABL branches having ATM booths. Offices where computers are used I. Circle Offices II. Zonal Offices III. Head Office Divisions
1 2 3 4
7 52 30
5.
Offices having Internet Facility I. Circle Offices II. Zonal Offices III. Head Office Divisions IV. Branches 7 52 30 867
mB y dU mwy eavmn kvLv Abvb 7wU evsKi m h_ vg v ey_m wU n ev_ sKi kvLv GwwUG L v KwDUvi eenvi nQ G aibi kvLv K mvKj Awdm . L. Rvbvj Awdm M. vb Awdmi wefvM ca BUvibU mwy eavmn kvLv msLv K. mvKj Awdm L. Rvbvj Awdm M. vb Awdmi wefvM ca N. kvLv
14 40 4 7 52 30 7 52 30 867
d. On-line Banking
To-days competitive banking means electronic banking. In order to establish a large-scale datacommunication network across 100 locations in the country which includes Head Office, 7 Circle Offices, 40 AD branches including 10 Corporate branches and 52 Zonal Offices, implementation of a fully integrated core banking solution is continuing and expected to be completed by 2010. All of our 40 Authorised Dealer branches including 10 corporate branches will come under on line banking. The customers of the branches in on line system will get the facility of phone banking, internet banking etc
N. Ab-jvBb evswKs
AvRKi w`bi cw ZhvwMZvgj ~ K evswKs Gi A_B nj Bjw bK evswKs| 100wU v b Z_ mieivni jgvv wbq KvR nQ bi hvZ hKvb Z_ mnR Av`vb c` vb Kiv hvq| 100wU v ga AvQ ca vb Kvhv jq, 7wU mvKj Awdm, 40wU e`wkK iU kvLv evwYR kvLv Awdm hvi ga AvQ Avevi 10wU Kcv ^ Kvi evswKs Ges 52wU Rvbvj Awdm| c y ivcwy i mgwZ mwjDkb wbq KvR nQ| 2010 mvji ga G KvR kl ne iU kvLv mn 40wU e`wkK ej Avkv Kiv nQ| 10wU Kcv evwYR kvLvq _vKe Ab-jvBb evswKs mwy eav| Gme kvLvi Mv nKiv AbjvBb dvb evswKs, BUvibU evswKs BZvwì mwy eav vb cve| G QvovI Zviv hKvb kvLvi m evswKs Av`vbc`
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besides opportunity for making their banking transactions with any of the branches.
Kivi mwy eav cveb|
e. Website
www.agranibank.org is the Banks website address. All updated information relating to Bank, its products, services including recent financial and other non-financial information are available in it.
O. IqemvBU
evsKi IqemvBU wVKvbv nQt www.agranibank.org. mvcw ZK Kvji Avw_K wnmve, Abvb Z_, evsK I Zvi cY I mevi mKj Z_ GB IqemvBU cvIqv hvq|
f. ATM
Agrani Bank Limited offers ATM Card facility in the name of E-cash Card. Any cardholder has 24 hours access to cash withdrawal and utility bills payment facilities. There are now 7 member banks sharing 40 ATM booths located at different cities of the country. However, the Bank has a plan to expand the number of ATM booths and other related products.
P. GwUGg
B-Kvk KvW bvg AMY x evsK wjwgUW GwUGg KvW mwy eav w`q z Z hvQ| dj h Kvb KvW nvvi 24 NUv bM` UvKv Zj cvib| GQvov iqQ BDwUwjwU wej cwikvai mwy eav| `ki wewfb kni v wcZ 40wU GwUGg e_ y KvR KiQ 7wU evsKi h_ cwiPvjbvq| Ze GwUGg e y _i mwy eav Ges Abvb cYi mwy eav mcm viY Kivi cwiKbv iqQ|
g. SWIFT
Modern communication system is essential for carrying out foreign exchange transactions. With a view to ensuring better services to the customers, especially to the importers, exporters and remitters, Agrani Bank Limited has, in the meantime, set up 14 SWIFT stations in different authorized dealer branches. Bank has planned to expand the facilities to other Authorized Dealer branches in near future.
Q. mB y dU
i e`wkK g` y v jb`b KiZ nj Avawy bK hvMvhvM eev c qvRb| Mv nKìK DbZ mev `qvi Dk wekl Ki Avg`vwbKviK, ivwbKviK I iwgU ci KìK ` mev y gvw`Z 14wU `qvi Dk evsK e`wkK g` y v eemvi Rb Ab kvLvq mB y dU eev Pvjy KiQ| AvMvgx w`b Abvb e`wkK Pvjy Kivi cwiKbv iqQ| g` y v kvLvZI mB y dU eev
Business Risk Management a. Focus

By nature, risks are extremely unpredictable. This makes it urgent for the Bank to evolve its risk management strategy in a way that best protects our interests against any insidious transactions. As such the bank has introduced Risk Management Manuals in five areas, according to the instruction of central bank. These are: Credit Risk, Asset Liability Management (ALM) Risk, Forex
Swuz K eev cbv

K. dvKvm cK w ZMZfveB SuzwK m ^ Kvb fwelvYx Kiv hvq bv| GKviYB evsKi Rb Swuz K nv mi eev cbv KvVvgv _vKZ nq ~ Swuz K _K evsKK iv Kiv hvZ h Kvb jb`b _K DZ hvq| G KviY Avgiv K`x q evsKi wb`k gvZveK cvP u wU bv gvb y qj ce Zb KiwQ| Gjv nQ: FY Swuz K eec cbv, m`-`vq eev cbv Swuz K, e`wkK evwYR Swuz K eev eev cbv Swuz K, Afi xY wbqY I cwicvjb Swuz K Ges gvwb
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Management Risk, Internal Control and Compliance (ICC) Risk and Money Laundering (ML) Risk. The bank recognises the risks and takes action business environment. to manage various risks posed by the ever-changing
jvwis Swuz K| cwieZb kxj eemvwqK cwiek eemv KiZ Mj h wewfb aibi Swuz Ki mL y xb nZ nq AMY x evsK wjwgUW G Ki| evcvi mRvM Ges G c qvRbxq Kvhe ev
Risk management process 1. Risk identification
2. Risk assessment and management
3. Risk control
4. Risk monitoring
The Bank has established risk management policy which is intended to balance risk against returns and will comprise of four broad processes as follows:-
Swuz K ck gbi j evsKi Swyu K eev cbv bxwZgvjv cYbqb Kiv nqQ hvi ga PviwU ca vb Swz K wb DjL Kiv njt
Risks
Credit risk
ALM risk
Forex. mgt. risk
ICC risk
ML risk
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b. Credit Risk
The Credit Risk Management Manual has been revised. It serves as a guide to effectively avert risks involved in lending activities of the Bank. We have put into practice the concepts of front, middle and back offices to ensure segregation of duties that calls for each individuals precise responsibilities within the area he performs. The Credit Risk Grading System (CRG) is introduced for making proper lending decision. All credit officers have been trained and groomed on CRG system, including their superiors at controlling offices. A Credit Committee (CRECOM) has been formed at Head Office to oversee and scrutinise risks involved in the process and give final recommendation in each credit proposal. Special attention was given for recovery and other action in the case of downgraded large loan borrowers.
L. FY Swz K u
FY Swuz K eev cbv gvb y qjwU mskvab Kiv nqQ| FYi m RwoZ Swuz Kjv wKfve gvKvwejv Kiv hvq GUvB Zvi Dk| evsKi d U, wgWj Ges evK Awdm Pvjy Kiv nqQ hvZ _vK| FYi GKRb Kgxi Kg Zvi `vwqZ mwy bw` h_vch y wmv cQvbvi Rb wWU wi Mw Ws wmmUg (wmAviwR) Pvjy Kiv nqQ| mg wWU AwdmviìK vb wmAviwR Gi Ici cw kY Ìqv nqQ| G cw kY ca Y KiQb| c ZKwU FY Awdmi wmwbqi KgK Zv ivI Ask Mn c v e fvjv Ki cixv-wbixv Ki Swuz Kjv wPwZ Kivi Rb Z| GB KwgwU Swuz K ca vb Kvhv jq GKwU wWU KwgwU Kvhi v e mc y vwik Ki| eo eo FY hv wbgvbi wbicY Ki FY c bqv nQ| FY cwibZ nqQ Zv Av`vq wekl eev
c.Asset Liability Management Risk

The Banks Asset Liability Committee (ALCOM) continued to sit at its meeting regularly to review both the opportunities and threats to its liquidity and balance sheet positions as well as positions of maturing assets and liquidity contingency plan. The Bank kept its liquidity at satisfactory level to cater to the needs of all types of customers.
M. mw I `vq eev cbv Swuz K

evsKi GvmU-jvqwewjwU KwgwUi (GvjKg)mfv wbqwgZ Abwy Z nq| Gme mfvq evj kxUi Aev I Zviji Aev Ges Ges GZ`msv Swuz K I mv ebv, mwi gvPwz iwU Aev nKì Rb Zvij cwiww Z chv jvPbv Kiv nq| mKj aibi Mv evsK chv Zvij iv Ki PjQ|
d.Foreign Exchange Management Risk

Foreign exchange risks arise from the variation in rates of exchange that prevail at domestic and international markets. Fund Management Division handles the forex and money market operations, including efficiency. treasury function with maximum
N. e`wkK evwYR eev cbv Swuz K

`k Ges we`k we`gvb wewbgq nvii KviY e`wkK evwYR y v Swz K u DZ ~ nq| Znwej eev cbv wefvM e`wkK g` y v evRvi eev cbvi KvR Ki| mev P `Zvi mv_ Zviv g` AskMn Y mn UR vwii KvR Ki|
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e.Internal Control and Compliance Risk

In line with the guidelines of Government and Bangladesh Bank, the Bank has introduced Audit Manual and Audit Implementation Manual for its branches to adhere to the procedures laid down therein. An Internal Control Unit has also been established to ensure control at every level of branch operation. Under the Internal Control Team (ICT), a squad of experienced personnel visits branches time and again to identify and correct operational lapses, if any. The Boards Audit Committee reviews reports of audit and inspections submitted by Audit and Inspection Division and suggest actions to remedy the lapses identified in the reports.
O. Afi xY wbqY I cwicvjb Swuz K

miKvi Ges evsjv`k evsKi wb`k bv gvZveK evsK AwWU gvb y qj Ges AwWU Bgwc g & Ukb gvbq y vj Zix KiQ hvZ jxi kvLvjv wewa I wbqg gvZveK KvR Ki| evsKi Kvhe Ici bRi`vwi Kivi Rb Afi xY wbqY kvLv v cb Kiv nqQ| Afi xY wbqY `ji Aaxb Awf Awdmviiv ev z wU cwi`kb Ki hvZ ev jvK civgk `qv hvq Ges fj AwWU KwgwU mg AwWU wicvU kvaivbv hvq| evWi z wU kvaivbvi Rb mc y vwik c` vb chv jvPbv Ki Ges fj Ki|
f.Money Laundering Risk

The Bank has continued its anti-money laundering stance with an emphasis to bring all the branches under exhaustive training programs inside and outside the Bank. In 2009, 3908 Officers and Staff were trained on prevention of Money Laundering through Agrani Bank Training Institute (ABTI). The Bank maintains meticulously the records of Know Your Customer (KYC) and Transaction Profile (TP) and sends Cash Transaction Report (CTR) and Suspicious Transaction Report (STR), if any, Know Your Customer (KYC) statements and Branch wise Anti Money Laundering Compliance Officers (BAMCO) list to Bangladesh Bank. In addition, the Bank also manages the risk, taking into consideration the credit risk, market risk, operational risk, liquidity risk and reputation risk which is shown in the diagram below :
P. gvwb jvwis Swz K u

gvwb jvwis welq evsK m`vRvMZ | evsKi fZi I evBi GB Dk KgK Zv I KgP vixìK cw kY `qv nQ| 2009 mvj 3908 Rb KgK Zv I KgP vixK AMY x evsK Uw bs BbwwUDU gvwb jvwis welq cw kY `q| evsK Zvi Mv nKì Z_, jb`b weeiYx, bM` jb`b weeiYx, Zv ì m`nRbK jb`b weeiYx, hw` _vK, gvwb jvwis KgK bvgi ZvwjKv msiY Ki Ges Zv kvLv wfwK evsjv`k evsK ci Y Ki|
GQvovI evsK Aviv KZjv Swuz K eev cbv Ki| Gjv nQ u I LvwZ Swuy K| FY Swz K u , evRvi Swz K u cwiPvjbv Swz K u , Zvij Swz K Gi wP bxP `Lvbv njvt
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Credit Risk
Market Risk
Reputation Risk Risks
Operational Risk
Liquidity Risk
g.Reputation risk
The objective of reputation risk management is to ensure that all risks arising from the negative publicity of the bank are duly taken care of. We ensure the security and privacy of information our customers.
Q. LvwZ Swuy K
u LvwZ Swuy K Dk nQ bwZevPK cP viYv _K DZ ~ Swz K eev cbv Kiv| Avgiv Avgvì mKj Mv nKi Z_ wbivc` ivwL Ges Zvi MvcbxqZv iv Kwi|
h.Liquidity risk
The objective of liquidity risk management is to ensure that all foreseeable funding commitments and deposits withdrawals can be met when due.
R. Zvij Swz K u
AvgvbZKvixi `vex Ges evsKi Dci hZ `vex`vi AvQ Zvì mKj `vex mgqgZ eev cbv KivB Zvij Swz K u i `vwqZ|
i.Operational risk
S. cwiPvjbv Swz K u
The objective of operational risk management is to ensure that all risks of loss arising from fraud,
RvwjqvwZ, fj y , weP z wZ, Aea KvR, A`Zv A_ev wewa weavb e_Z vi KviY h Swuz K DZ ~ nq Zv `Lvbvi `vwqZ nQ
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error, omission, unauthorized activities, inefficiency, system failure from external events can be addressed appropriately.
u eev cbv| cwiPvjbv Swz K
j.Market risk
The objective of market risk management is to ensure that all risks of loss of earnings due to change in the interest rate, foreign exchange rate can be addressed properly.
T. evRvi Swz K u
BZvw` m y ì nvi cwieZb , e`wkK g` y v wewbgq nvii cwieZb u KviY evsKi wZ nq A_ev gb y vdv Kg nq| evRvi Swz K m Kiv| eev cbvi `vwqZ nQ Gme Z`viKx Ki jvKmvb nv
Credit Rating
In 2007, the Bank appointed Credit Rating Information and Services Limited (CRISL), for credit rating of the Bank as per directives of Bangladesh Bank. The rating company assigned AAA to the Bank in the long run and ST-1 in the short term. This rating has been done in consideration of the guarantee of the Government of the Peoples Republic of Bangladesh being the highest risk free entity. Financial Institutions rated in this category have the best quality, offer highest safety and have the highest credit quality. However the banks entity rating (as stand alone commercial bank) has been improving over the years, as will be evident from below:
wWU iwUs
evsjv`k evsKi wb`k vbh y vqx evsK 2007 mvj wWU iwUs Bbdigkb Gv mvwf mm wjwgUWK (wmAviAvBGmGj) iwUs j-G Ges ^ KvR wbh y Ki| Zviv evsKK `xN gqv` wUc vZx gqv` GmwU-1 evsK wnmve gj ~ vwqZ Ki| MYcR ~ j G iwUs Kiv nq KviY evsjv`k miKvii c` MvivwU g | G aibi gj ~ vwqZ Avw_K miKvi nQ Swuz Kg y GKwU mv g , mePq wbivc` Ges Zvì iqQ cw Zvb nQ Y mev mev P gvbmb FY| GQvov evwYwRK evsK wnmveI cw ZwbqZ nQ hv wb cwijwZ nQ: evsKi iwUs-Gi gvb DbZ
2008 Particulars Long term Entity rating (As Entity stand Outlook Date of rating declaration government rating (as alone Positive 08.11.2009 AST-2 BBB + supported entity) AAA Short term ST-1 Long term AAA
2007 Short term ST-1 weeiY GvwUwU iwUs (miKvi mgw_Z msv wnmve) iwUs GvwUwU (evwYwRK evsK wnmve) `w KvY iwUs NvlYvi ZvwiL Positive 22.10.2008
2008 `xN gqv`x GGG G ^ gqv`x GmwU-1 GmwU-2 BwZevPK 08.11.2009
2007 `xN gqv`x GGG wewewe+ ^ gqv`x GmwU-1 GmwU-3
ST-3
BwZevPK 22.10.2008
commercial bank)
Implementation of Basel II
The banking sector in Bangladesh is undergoing
evmj-2 eve vqb

evsjv`ki evswKs LvZ eo eo cwieZb mvwaZ nQ| evmj-
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significant changes. BASEL-II Accord, which may be under review, is going to be implemented from 2010 ( parallel 2009), placing heavy reliance on internal risk assessment and management techniques for the purpose of quantifying and allocating capital for credit, market and operational risks. Continued success of a bank depends on its ability to prepare for unexpected and potentially much less favorable events and outcomes. The Basel Committee on Banking Supervision has published a new framework for calculating minimum capital requirement, consisting of 3 pillars, known as Basel II. Following Steering provided the to suggestions the staff from the of National was various
2 Pwz - hv chv jvPbvaxb AvQ, Zv 2010 mvji ga eve vwqZ cbv nZ hvQ| G Pwz Z Afi xY Swz K u wbicY Ges eev u , Kkj Gi Dci Rvi `qv nqQ| GUv `qv nqQ FY Swz K ~ abi cwigvY wbav iY I evRvi Swuz K, cwiPvjbv Swz K u wnmve Ki gj AbK NUbvRwbZ eUb Kivi Rb| AcZ vwkZ Swuz K Ges cw ZKj _vKjB evsKi mvdj Avm| Swuz K _K evP u vi eev
z GKwU KvVvgv evswKs ch eYi Ici evmj KwgwU bZb ~ bZg gj ~ ab wnmve Kiv hvq| Gi wZbwU w`qQ hvi gvag b AvQ Ges Zv evmj-2 bvg cwiwPZ|
y vwik gvZveK wewfb wefvMi bvkbvj wqvwis KwgwUi mc KgK Zv I KgP vixì AevnZfve cw kY `qv nQ| evsKi vqbi `vwqZ wbqvwRZ | eve vqb BDwbU evmj-2 eve x evsK wjwgUW 9 m`m wewk evmj-2 eve vqb KwgwU AMY cbv MVb KiQ| Gi ca vb nQb ca vb wbev nx Ges eev cwiPvjK| evsK 20 m`m wewk GKwU IqvwKs M cI MVb vb KiQ| GZ iqQ wewfb wefvMi wbevn x/Awdmvi| Gi ca q evmj-2 ev nQ gnveev cK (Acvikb); ZvivB gvV chv evqbi `vwqZ _vKeb| evsjv`k evsK, wmAviAvBGmGj 3 27 R b Ges wbR^ Awdmviì w`q evsK G ch wbevn x/AwdmviK G welq cw kY w`qQ|
Committee,
continuous members
training
departments. The Implementation Unit will remain responsible for overall supervision of Basel II implementation of the Bank. Accordingly the Bank formed a 9 member Basel II Implementation Unit in the Bank headed by the Managing Director & CEO. The bank also formed a Basel II Working Group comprising 20 members with Executives/Officers from different related divisions of the Bank headed by the General Manager (Operation) to work at the ground level for implementation of Basel II in the Bank. The Bank so far provided training to 327 Executives/Officers of the Bank on Basel- II with the assistance of Bangladesh Bank, CRISL and Bank's own experts.
Corporate Governance
The bank is always committed to adopt highest corporate governance standards for attaining better operational goals. The collective role of the Board of Directors, Managing Director and CEO and the Committees is to ensure excellence in corporate
Kcv iU Mfb v
j I Dk AR bi Rb AMY x evsK me mgqB mk y vmbi Ici iZv ivc Ki| mk y vmbi bxwZjv cwiPvjbv cwil`, eev cbv cwiPvjK I ca vb wbev nx Ges wbevn x KwgwU h_fve ^ _ `Lvi Rb AMY x eve vqb Ki| v ^ _ mswk mKj ci v
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governance practices. The activities of the Bank are always conducted in adherence to highest possible ethical standards for the best interest of the stakeholders.
evsK me` v mev P bxwZ I Av`k iv Kiv nq|
Corporate Social Responsibility

a. Focus
eemvq mvgvwRK `vqeZv K. dvKvm

Avgiv h mvgvR emevm Kwi Zvi Pvwn`vi cw Z Avgiv ek mse`bkxj| `k I RvwZi cw Z Avgvì Mfxi AvbM y Z I y vdv `vqeZv AvQ| G Avgvì bxwZ ^ Q t AwZwi gb nK, bq, eis hwy h y fve evswKs Kvh g cwiPvjbv| mvwbZ Mv wi kqvinvvi, KgK Zv I KgP vix, eemvwqK ez Ges mevc mgvRi Pvwn`vbh y vqx KvR KivB nQ Avgvì eemvqi vb Kiv njv| mvgvwRK `vqeZv hvi ebYv wb c`
We are very sensitive to the social needs in which we operate. We have a deep commitment, loyalty and a high sense of responsibility to our nation and the people. Our ethics are clear: not to earn excessive profits, but to operate in a rational and sensible way. Our corporate social responsibility is about addressing the need of our valued business customers, shareholders, employees,
partners and the community, as described below.
b. Valued customer
The way we discharge our responsibility to our valued customers is offering different financial products and services to meet their needs with the highest degree of ethics. We feel proud to provide our services to our valued customers without any hidden cost. We believe that our customers are our business partners and we sincerely strive to improve our business relationship with our customers for our mutual benefits.
L.mvwbZ Mv nK
wewfb aibi Avw_K cY I mevi gvag Mv nKìK Avgiv mev P mev c` vb Ki _vwK| G `vwqZ cvjb Avgiv GKUv gj ~ eva Abm y iY Kwi| Kvb cK vi c Qb eq QvovB Avgiv nKiv mvwbZ Mv nKìK mev c` vb Kwi| Avgiv gb Kwi Mv Avgvì eemvi Askx`vi| cviwiK mwy eavi wfwZ Avgiv Mv nKì m mK v cb Kwi|
c. Shareholders
We are fully committed to the interest of our shareholders. We increase our shareholders value by optimizing financial performance at least cost.
M. kqvinvvi
Avgvì mvwbZ kqvinvviì v ^ _ ivq Avgiv ecwiKi| mePq Kg LiP Avw_K jvfc` Zv ew Ki Avgiv kqvinvviì v ^ _ iv Kwi|
d. Employees
We treat our human resource as an instrument for development. Our workforce is the prime factor of
N.KgK Zv I KgP vixe `

Avgiv Avgvì gvbem`K Dbq bi nvwZqvi gb Kwi| Avgvì mdjZvi PvweKvwV nQ Kgxe vwnbx| cw ZwZ
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our success. Following an established criteria for promotion 989 employees from different grades were promoted in 2009. in other grades. As usual, the Staff Welfare Fund, which is run by the Banks employees out of their regular contribution, continued to stand by its members for their well-being. During 2009 a total of Tk. 1.51 crore was allocated from this fund of which a sum of Tk. 28.50 lac was donated out to 134 in-service employees and their spouses for health care and Tk. 1.22 crore to 467 retired employees as retirement donation. As a part of its welfare activities, an amount of Tk. 11.10 lac was given to the families of 55 deceased employees for meeting funeral expenses. In addition, an amount of Tk. 22.80 lac has been kept aside for awarding merit scholarship to the children of 490 employees for outstanding performance in S.S.C. and H.S.C. examinations. There is a Board of Trustees to provide financial support to the staff members as admissible under the rules on their termination or retirement from the Bank services or to their nominees or legal heirs in case of death. To this end, two trusts, Agrani Bank Limited Employees Provident Fund Trust and Agrani Bank Limited Superannuation Fund Trust, are in operation. As part of its recreational programme, the Bank organises sports and cultural activities for its employees to shake off their monotony and reenergize them to embark upon fresh initiatives. Its soccer and cricket teams, qualified in the First Division have regularly been participating in various tournaments. The Bank also patronizes sports and cultural events throughout the country, besides organising annual sports and cultural activities centrally. Of them, 31 became DGMs, 60 AGMs, 115 SPOs and the remaining 783
vBUwiqvi wfwZ 2009 mvj 989 RbK c`vbw Z `qv nqQ| Gi ga 31 Rb wWwRGg wnme, 60 Rb GwRGg wnmve, 115 Rb GmwcI wnmve Ges evKx 783 Rb Abvb W c`vbw Z cqQb| M vixì A_ eiveii gZB KgP vix KjvY Znwej - hv evsK KgP cwiPvwjZ - KgP vixì KjvY mvabi `vwqZ cvjb AevnZ vb iLQ| 2009 mvj 1.51 KvwU UvKv GB Znwej _K c` Z KgP v ix Kiv nq| Gi ga 28.85 j UvKv 134 Rb Kgi v ^ mevi Rb `qv nqQ| 467 Rb Ges Zvì cwievieMi KgP vixK AemiKvjxb mwy eav wnmve `qv nqQ 1 . Aemicv 22 KvwU UvKv| gvbweK Kvh gi AvIZvq 11.10 j UvKv c` vb Kiv nqQ 55 Rb gZ KgP vixi klKZ mv`bi Rb| y -Kbvì fvjv GmGmwm Ges GBPGmwm cixvq KgP vixì c dj Kivi Rb 22.80 j UvKv Avjv`v Ki ivLv nqQ| Gi vb Kiv ne| Avw_K _K 490 KgP vixi c y -KbvK ew c` w AvQ| G Qvov mvnvh `qvi Rb evsK GKwU evW Ae Uv Yi mgq GKwU dv _K mvnvh `qv PvKwz iP z wZ, Aemi Mn vix, A_ev Zvi gbvbxZ ew A_ev nq| G mvnvh cvq KgP y Uv Uv we`gvb| GKwU AvBbmZ cw Zwbwa| GB Dk ` x evsK wjwgUW Gq xR cw fWU dv Uv Ges nQ AMY x evsK wjwgUW mc y viGb y qkb dv Uv | AbwU nQ AMY
KgK Zv I KgP vixì GKNqwg KvUvbv Ges ZvìK bZb z fve KvR DxweZ Kivi Dk evsK cw ZeQi ~ K wKQy KvR Ki| evsK dU z ej I wKU `j c_ g webv`bgj wefvM wbqwgZ LjQ Ges Ub z v gU AskMn Y KiQ| evwlK y vb AvqvRb xov cw ZhvwMZv Ges K`x qfve mvsw ZK Ab vK DrmvwnZ Ki| QvovI evsK Ljvaj y v I mvsw ZK KgK
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e. Business Partners
We always try to maintain a good business relationship with our business friends for our mutual growth. Our relationship is based on mutual trust and respect. We transact with them in a fair and transparent way.
O.eemvwqK ey
cviwiK Dbw Zi Rb Avgiv Avgvì eemvwqK e z ì m fvj mK iv Kwi| cviwiK k v Ges wekv mi Ici wfw Ki G mK v wcZ| Zvì m Avgiv ^ QZv iv Ki Pwj Ges h_vh_ mK ivwL|
f. Environment
Our environmental management policy stipulates adherence to environmental health and safety regulations and guidelines, refraining from business that impairs the ability of our future generations to meet their own needs. The policies with regard to safety, health and environment management are also being observed in our lending practices.
P.cwiek
cwiek, v ^ , wbivcv wewagvjv I wbqgvejx ivi bxwZ evsK Abm y iY Ki| fwelr cR bi wZKviK Kvb KvR Avgiv , cwiek, AskMn Y Kwi bv| FY `qvi mgqI Avgiv v ^ wbivcv BZvw` we`gvb evav-wbla gb Pwj|
g. Regulators
As a responsible corporate body, we conform to all of the stringent regulations issued by the Government of the Peoples Republic of Bangladesh and the Bangladesh Bank.
Q. ijUiMY
evsjv`k miKvi Ges evsjv`k evsKi mKj AvBb I wewa gb Avgiv Pwj| G Avgiv `vwqZk xj Kcv iU ewW|
h. Community
Our Corporate Social Responsibility to the community is designed to respond to the huge unmet demand of the society. As part of our corporate social responsibility, we contribute generously to the nourishment of the countrys education, arts, crafts, culture and sports. We share all sorts of values and sentiments, irrespective of caste, creed or colour. Moreover, we uphold the concept of avoiding gender discriminations. We keep the door open for empowerment of women workforce to ensure a level playing field in terms of promotion, placement and delegation of power. The Bank contributed Tk.25 (twenty five) lac to Prime Ministers relief fund for the rehabilitation of the Aila affected people.
R.mgvR
mgvRi e Pvwn`v GLbv Aci ~ Yxq| Avgvì eemvqi mvgvwRK `vqeZv (Kcv iU mvkvj imcbwmwewjwU, wmGmAvi) mB Acw~ iZ Pvwn`v ci y YB wbew`Z| `ki wkv, wk, msw Z Ges y vb w`q Ljvaj ~ vi jvZ Avgiv wmGmAvi Gi Aaxb Ab` ~ eva I wekv mi _vwK| RvwZ-ag eY wbwe kl Avgiv mKji gj m Kwi bv| cw Z k vkxj| Avgiv wjwfwK elg wekv cb Avgiv bvixi c`vbw Z, c`vqb Ges gZv cZ y li Rb mgvb m y hvM wekv mx gZvqb wekv mx| bvix Ges ci Avgiv|
AvBjvq wZM ì cb y ev mbi Rb AMY x evsK wjwgUW ca vbgx i vY Znwej 25 j UvKv c` vb KiQ|
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We arrange competition for the children regularly to explore their literary talents in a colourful program named Agrani Bank Shishu Sahittaya Award at Shishu Academy. In 2009, we donated Tk. 2.00 (two) lac taka to Shishu Academy for arranging the program. We jointly sponsored the 45th Convocation of University of Dhaka. For that program we contributed Tk.10 (ten) lakh University of Dhaka. We donated Tk.1 (one) lakh to High Care Society for the treatment of dumb children. We also donated Tk.1 (one) Lakh for the treatment of Mr. M.A. Halim, Senior Professor of Department of International Relations, University of Dhaka. to the authority of
Avgiv wkì mvwnZ Kg DrmvwnZ Kivi Rb cw ZqvwMZvi x AvqvRb Kwi Ges ci y vi c` vb Kwi| ci y vii bvg AMY evsK wk mvwnZ ci y vi| Ab y vbi AvqvRb Kiv nq wk y j GKvgxZ| 2009 mvj wk GKvWgxK AMY x evsK `B UvKvi Ab` y vb `q GB Ab y vbi AvqvRb KiZ|
XvKv wekw e`vjqi 45 Zg mgveZb Avgiv h_fve i Kwi| GB Dk XvKv wekw e`vjqK Avgiv 10 j UvKv Ab` y vb c` vb Kwi|
gK ~ I ewai wkì wPwKrmvi Rb Avgiv 2009 mvj 1 j UvKv Ab` y vb w`B| XvKv wekw e`vjqi AvR v wZK wefvMi x evsK GK wmwbqi c dmi Gg, G, nvwjgi wPwKrmvi Rb AMY j UvKvi Ab` y vb `q|
Human Resource Management and Development

a. Focus
Human resources are the real capital of our Bank. We always give due recognition to the contribution made by the officers and staff members. We consider the human recources as a tool for development. Human resources are the key to our success. Following corporatisation, the Bank's key strategy is to set a new standard towards the full range of exploration and development of our human resources. We are giving more importance to quality, skill, creativity and professionalism from 2009. Now due consideration is given to merit, seniority, management skill, sense of responsibility and participation in the liberation war as a freedom fighter, etc. at the time of promotion.
gvbe m` eev cbv Ges Dbqb

K. dvKvm
gvbe m`B evsKi cK Z m`| KgK Zv I KgP vixì Ae`vbi Rb Avgiv me mgqB x ^ Kw Z c` vb Ki _vwK| Dbq bi Rb gvbe m`K Avgiv nvwZqvi wnmve MY Kwi| Avgvì mdjZvi PvweKvwV gvbem`| AMY x evsK GKwU Kvvbx wnme icvw iZ nIqvi ci evsKi Kkj nQ gvbe m` Dbq bi mKj mv ebv KvR jvMvbv| 2009 mvj _K Ici AwaKZi Avgiv Y, `Zv, mR bkxjZv Ges ckv`vwiZi cbv `Zv, `vwqZ cvjb Ges iZ w`wQ| gav, RZv, eev y AskMn Y BZvw` GLb c`vbw Zi gwy & hvv wnmve gwy h weeP welq|
b. Organogram
Corporatisation has necessitated the Bank to restructure its existing organogram. As such
L. mvsMVwbK KvVvgv KvvbxZ icvw iZ nIqvi ci evsKi mvsMVwbK KvVvgvi cwieZb Kiv Riix nq co| G KviY we`gvb c`,
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necessary steps have been taken to rename the existing positions and redefine the portfolios and functional jurisdictions of GMs, DGMs and Heads of Zones.
cvUd wjI, Rbvij gvbRvi, Wcwy U Rbvij gvbRvi Ges AvwjK ca vbì Kvhv ejx cb y web vm Kivi ek wKQy c`c Mn xZ nq|
c. Human resource Planning- Recruitment, Promotion & Departure

At the end of 2009 the manpower strength stood at 11,443, comprising 6,992 officers and 4,451 staff members. Rationalization of manpower continues as part of the employee productivity enhancement programme. During the period under review, 194 Senior Officers, 400 Officers and 243 Officers (cash) joined under banks direct recruitment program and 7 Senior Officers, 145 Officers and 224 Officers (Cash) joined through BRC respectively. Immediate appointment of consultant for Shariah banking and 1(one) Lady Doctor is under process. 01 full time Law Consultant for the bank has already been appointed. Furthermore, recruitment of about 1,000 Senior Officer, Officer and Officer (Cash) is under process.
M. gvbem` cwiKbv - wbqvM, c`vbw Z Ges c v b

Z 2009 Gi kl evsK 11,443 Rb KgK Zv I KgP vix Kgi wQj| Gi ga 6,992 Rb KgK Zv Ges 4,451 Rb KgP v ix | KgK Zv I KgP vixì gav I Kg` Zv ew i j evsK wewfb Kgm P ~ x Mn Y Kiv nq| 2009 mvj evsKi wbR^ D`vM wbevw PZ cv _x ì ga 194 Rb wmwbqi Awdmvi, 400 Rb Awdmvi Ges 243 Rb Awdmvi(Kvk) evsK hvM`vb Kib| evsKvm wiU z gU KwgwU KZK wmwbqi Awdmvi c` 7 Rb, Awdmvi c` 145 Rb Ges Awdmvi (Kvk) c` 224 Rb evsK hvM`vb Kib| kixqvn evswKs Gi AvIZvq GKRb gwnjv Wvvi wbqvM Kvh g cw qvaxb AvQ| BZvga GKRb AvBb civgkK K mve wYK `vwqZ cvjbi Rb wbqvM `qv nqQ| DjL , evsK AviI 1,000 Rb wmwbqi Awdmvi, g cw qvaxb AvQ| Awdmvi Ges Awdmvi (Kvk) wbqvM Kvh
989
employees
from
different
grades
were
_K 989 Rb KgK Zv KgP vixK 2009 mvj wewfb i c`vbw Z `qv nqQ| Zvì ga 31Rb wWwRGg, 60 Rb i GwRGg, 115 Rb GmwcI Ges evwK 783RbK wewfb c`vbw Z `qv nqQ| G mgq, 01Rb wcw cvj Awdmvi, 16Rb wmwbqi Awdmvi, 58Rb Awdmvi Ges 76Rb Awdmvi (Kvk) evsK Qo Pj hvq|
promoted in 2009. Of them, 31 became DGMs, 60 AGMs, 115 SPOs and the remaining 783 in other grades. During the period, 01 Principal Officer, 16 Senior Officers, 58 Officers and 76 Officers (cash) departed from the Bank.
d. Development and Training

Training is a proven instrument for human resource development. In plays a key role in developing knowledge and skills and also works as a catalyst for attitudinal change.
N. Dbq b I cw kY
cw kY nQ gvbe m` Dbq bi cixwZ nvwZqvi| KvwiMix I c KjkjMZ Dbw Zi c vcU vb, `Zv Ges gvbwmK cwieZ bi Rb cw kY ìKvi|
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Agrani
Bank
Training
Institute
(ABTI)
was
1976 mvji 24 wWmi ^ AMY x evsK Uw bs BbwwUDU (GwewUAvB) cw ZwZ nq| Kgx I KgK Zv ì ZvwK I eve cw kYi Rb c qvRbxq Kvm cY qb, cvV ZvwjKv Zix, covi Zv mvgMx Zix BZvwì Rb `vwqZ cv nQ GwewUAvB| KgK vmwbK `Zv ew K I eev cKì ckvMZ gvb ew I ck Ki| kxl GwewUAvB wewfb evswKs cw kYi eev vjv, gZwewbgq mfv Ges KgK Zv ì Rb mwgbvi, Kgk AvjvPbv mfv BZvwì AvqvRb Ki GwewUAvB| miKvi, Kvix cw Zvbi wbqg-Kvbb y , wewa, Kw`q evsK I wbqY bi m Lvc KvBq Zvjvi Rb GwewUAvB cwieZb I cwieZ Ki| c qvRbi wfwZ cw kYi eev
established on 24th December 1976.
ABTI is
entrusted with the responsibility of designing course curricula, reading materials, course contents for imparting training (both theoretical and ABTI and and practical) to the officers/staff members. purpose of enhancing efficiency of professional all officers
imparts training on different banking issues for the administrative
managers.ABTI also conducts workshops, seminars, conferences, symposia, etc. on important issues for top executives. To cope with the changes and introduction of new tools and techniques for implementation of guidelines of Government and regulatory bodies and also for the purpose of implementation of various reform programs, ABTI lays emtphasis on actual need-based training.
Agrani Bank Training Institute (ABTI) has already covered a total number of 53,108 officers and staff members under different banner of training through 1,678 courses/workshops since its inception in 1976. In 2009 ABTI organized training for a total of 3,523 officers and staff members through 128 courses/workshops.
1976 mvj GwewUAvB cw ZwZ nIqvi ci _K G ch 53,108 Rb Awdmvi I vdK 1,678wU Kvm I IqvKk ci gvag cw kY `qv nqQ| 2009 mvj GwewUAvB 3,523 Rb KgK Zv I vdK 128wU Kvm/ IqvKk ci gvag cw kY w`Z mg nqQ|
In
2009,
ABTI
undertook Of late,
comprehensive our on present massive
^ 2009 mvj GwewUAvB wewfb welh cw kYi GKwU mgwZ KwDUvi Kgm P ~ x Mn Y Ki| Avgvì eZg vb eev cbv KZc cw kYi Ici Rvi w`Qb| G KviY KwDUvii Ici ek KZjv IqvKk ci AvqvRb Kiv nqQ| cw kY P ~ xi Avgvì h mvdj Zv GmQ ek wKQy msLK cw kY Kgm gvag| Gjvi ga AvQt WK z gUvix wWU nvwjs Gi cwZmgn ~ , kvLv eev cbv, evswKs dvDkb Kvm, cK cY qb I eev cbv GmGgB Ges gvBvwWU, Mv gxb I Kw l FY, evmj-2 bxwZgvjv, gvwb
programme on different areas of banking and related disciplines. has management stressed
computerization network development. So, a good number of workshops on computer have been conducted. Important Procedure areas of of training include Credit, Handling Branch
Documentary
Management, Banking Foundation Course, Project
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88
Appraisal and Management, SME & Micro Credit, Rural and Agri-credit, Basel-II Accord, Money Laundering Prevention, Asset Liability Management, Internal Control & Compliance, Marketing of Banking Products, Recovery of Classified Advances and Suit Settlement Techniques, Data Reporting on SBS-1,2,3 Returns, Trainers Training, Computer: PC-MS Office, Computer: Application and Operation of Branch Banking Software, Remittance operation and Management. Besides, a special outreach course entitled Capacity Development on Banking Operation has been undertaken in divisional towns outside Dhaka.
jvvwis cw Ziva, m`-`vq eev cbv, Afi xY wbqY Ges cwiPvjb, evswKs cb wecbY, kY x webvwmZ FY Av`vq Ges , gvgjv wbwi cwZ, Z_ cw Ze`b GmweGm-1, 2, 3 wiUvYm cw kKì cw kY, KwDUvitwcwm-GgGm Awdm, KwDUvit Gvwc Kkb Gv Acvikb Ae ev evswKs mdUIqvi, A_ ci Y cwiPvjbv Ges eev cbv| XvKvi evBiI Kvm Abwy Z b| nQ| GB Kvmi bvg evswKs cwiPvjbvi `Zv Dbq Gjv Abwy Z nq wefvMxq knijvZ|
e. Training Activities in 2009

The details of the training activities in 2009 are shown below:
O. 2009 mvji cw kY KgK v

wb 2009 mvji cwkY KgK vi eYbv `qv njv:
Special Course
Sl No. 1 Sub-Total: Name of Course / Workshop Management Development Program Duration 2 days Level of Participants DGM/AGM Participants Attended 176 176 Arranged by ABTI
General Courses
Sl No. 1 2 3 4 5 Name of Course/ Workshop Banking Foundation Course (Probationary Officer) Banking Foundation Course (Probationary Officer) Branch Management Foundation Course (Promotee Officer) Handling Procedure of Documentary Credit Sub-Total: Duration 6 weeks 6 weeks 1 week 2 weeks 1 week Level of Participants Sr. Officer Officer Sr. Officer to SPO/Br. Manager Promotee Officer DGM/AGM Participants Attended 192 204 37 53 18 504 Arranged by ABTI ABTI ABTI ABTI ABTI
Outreach Program
Sl No. Name of Course/ Workshop Duration Level of Participants Participants Attended 24 105 Arranged by
1 2
Handling Procedure of Documentary Credit Techniques of Recovery of Classified Advances and suit Settlement
2 days 2 days
Officer to PO Branch Managers / Credit Officer
ABTI ABTI
3 4
Internal Control & Compliance Orientation Course on Branch Banking Operation Sub-total:
2 days 1 week
Branch Managers / Concerned Officer Officer (Cash)
101 155 385
ABTI ABTI
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89
Workshops
Sl No. 1 New Capital Accord (BASEL - II) Credit Risk Grading Name of Course/ Workshop Duration 1 day Level of Participants Executive / Branch Managers Participants Attended 327 Arranged by ABTI
2 days
Credit Officer / Managers
66
ABTI
Money Laundering Prevention
1 day
Branch Managers / Concerned Officer
373
ABTI
Strategic Management of Asset-Liability and Profit Maximization
1 day
Branch Manager
38
ABTI
SBS 1,2,3 Data Reporting
1 day
Concerned Officer
125
ABTI
Preparation of Computerized CL Statements
1 day
Concerned Officer
61
ABTI&LCD
SME Strategy :ICIC Bank
1 day
54
ABTI
BACH Awareness Program
1 day
88
ABTI
Foreign Remittance Operation Remit One, IME & Trans Fast System
1 day
90
ABTI & FRMD
10
Bangladesh Labour Law and Trade Union Refreshes Training Workshops on Handling Procedure of
1 day
38
ABTI
11
Documentary Credit Sub-total:
2 days
20
ABTI
1,280
Computer Courses
Sl No. 1 2 3 4 5 6 Name of Course/ Workshop Computer : PC - MS Office Remittance Operation & GL Automation Computer : Its application in Agrani Bank Limited (SPO/Officer: Evening) Computer: Its application in Agrani Bank Limited (SPO/PO: Day) Computer: Its application in Agrani Bank Limited (SPO/PO: Evening) Computer: Application & Operation of branch Banking Software (Officer: Day) Computer: Application & Operation of Branch Banking Software (Officer: Evening) MS Office : Excel-Its use in Agrani Bank Limited (Day) Online Reconciliation Software Duration 2 weeks 1 day 15 days 2 weeks 15 days 4 days Concerned Officer (Outside Dhaka) 10 days 66 ABTI & ITD Level of Participants SO / Officer Participants Attended 725 745 84 48 33 Arranged by
ABTI & ITD ABTI & ITD ABTI & ITD ABTI & ITD ABTI &ITD
Concerned Officer SO / Officer (Dhaka) SO / Officer (Dhaka) SPO/PO (Dhaka)
Concerned Officer (Outside Dhaka) Credit Officer (Outside Dhaka) SO / Officer
15
ABTI & ITD
8 9 Sub-total
5 days 1 day
35 80 1,178
ABTI & ITD ABTI & ITD
Grand-Total
3,523
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90
Apart from the training courses being offered by the ABTI, 453 executives/officers were nominated for undergoing various training courses at BIBM, BPATC, BBTA, ICCB, ICICI, BAFEDA, Academy for Planning and Development, etc.
GwewUAvB-Gi cw kYi evBi 453 Rb wbev nx/AwdmviK cw kY `qv nq| h mg cw Zvb Zvi u v cw kwZ nb mjv nQt weAvBweGg, wewcGwUwm, wewewUG, AvBwmwmwe, AvBwmAvBwmAvB, weGGdBwWG (evdWv) Ges GKvWgx di c vwbs Gv WfjcgU BZvw`|
In 2009, on invitation from foreign organizations, 4 executives/officers were sent abroad to attend various training courses, workshops, seminars, conferences and symposium to acquire updated knowledge of modern banking.
Y Avawy bK evswKs G vb AvniYi Rb we`kx msv i Avg 2009 mvj 4 Rb wbev nx/ KgK Zv K wewfb cw kb Kvm, IqvK kc, mwgbvi Ges wmvwRqvg Ask Mn bi Rb we`k ci b Kiv nq|
f. Budget for training

Agrani Bank Limited is very cautious about the skills development of its employees. In the year 2009 the Bank budgeted Tk. 1 crore for the training of the employees.
P. cw kYi Rb evRU
AMY x evsK wjwgUW Kgx ì `Zv Dbq bi welq Le y B mPZb| 2009 mvj evsK Kgx ì cw kYi Rb GK KvwU UvKv evRU KiQ|
Contribution to National Exchequer

The bank has contributed a lot to the government collection process in the form of revenue. Bank pays income taxes regularly on its income. The bank also deducts income tax, value added tax and excise duty at source as per law from various payments and services and deposits the same to the national exchequer. Agrani Bank Limited pays tax on behalf of its employees .Total payment to the national exchequer during 2009 and 2008 are given below:
RvZxq ivR^ LvZ Ae`vb
miKvii ivR^ Av`vq cw qvq evsK AbK Ae`vb iLQ| evsK Avqi Ici wbqwgZ AvqKi cwikva Ki y vqx wewfb aibi mev _K _vK| evsK AvBb Abh ~ ev` w`q _vK Ges AvqKi, gj ~ mshvRb Ki Ges A:k Zv RvZxq ivR^ LvZ Rgv `qv nq| AMY x evsK Zvi Kgx ì c Ki cwikva Ki _vK| 2009 Ges 2008 mvj RvZxq ivR^ LvZ Rgvi cwigvY wb `qv njv:
(Amount in crore Taka) Particulars Payment of advance tax on banks income Staff income tax paid by the Bank Tax deducted at source and deposited VAT deducted source and deposited Excise duty deducted and deposited Total Page 91 of 110 2009 8.42 1.04 50.14 12.29 29.93 101.82 2008 12.57 0.79 32.80 12.77 19.11 78.04
91
Contribution to National Economy

The bank plays an important role in the
RvZxq A_b xwZZ Ae`vb

Mv gxY A_b xwZi Dbq b evsK iZc Y ~ fwy gKv cvjb KiQ | cZ Ajmn mviv`k evsKi 867 wU kvLv AvQ| hwÌ y j ~ bq kvLvjvi KvR evsKi Rb A_ bwZK fve AbK vbi j kvLv ZviciI cZ Aji Mv gxb gvbl y ì mev c` Y ~ fwy gKv cwiPvjbv KiQ| eKvi mgmv wbimb evsK iZc ivLQ| 2009 mvji kl evsKi gvbe m` wQj 11,444 Rb, hvi ga 6,993 Rb Awdmvi Ges 4,451 Rb vd| g Pvwjq AvmQ| hv ce vwm i_K evsK e`wkK g` y v Kvh g` y v Mn Y Kivi KvR mvnvh Ki| 24 evsjv`kxì DcvRb KZ y v mwy eavMn YKvix wnmve Rgv nq| AbNUvi ga e`wkK g` ~ bv ce vmx evsjv`kxì Kgx ì ga jvBb weZiY cwZ mP ce j Drmvn GbQ|
development of rural economy. The bank has 867 branches across the country. The bank operates some branches in the remote areas to provide the banking services to the rural people, though operations of those branches are not financially viable to the bank. The bank also plays an important role in reducing unemployment problem by way of participating in different employement generation activities. At the end of 2009, the Bank itself employed 11,444 people, out of which 6,993 were officers and 4,451 were staff members. Since beginning, the bank has been highly active in remittance operations to facilitate disbursement of remittances received from Bangladeshi wage earners working abroad. The remitted money can be deposited to the beneficiaries account within maximum 24 hours. The introduction of on-line distribution of remittances has generated much enthusiasm among the expatriate Bangladeshi workers.
Outlook for 2010

In spite of tremendous competitions and
mv ebvi 2010
Zxe cw ZhvwMZv mI evsK cv q me iZc Y ~ B Dbw Z KiZ mg nqQ| evswKs _K i Ki `kx- Av Rv wZK mKj cw ZhvwMZv Le y mP y vi fve gvKvwejv Kiv nqQ| vqb evsK G mKj cw ZhvwMZvi Drm gvKvwejvi Dcvq eve bi Kgm P ~ x Mn Y KiQ| cwiKbv, wewfb wmg I `Zv Dbq evsKi Dk nQ mwi YMZgvb Dbq b, DPZi m` y Avq I DbZ i mevi gvag Kg cwiPvjbv Kiv|
challenges, the bank has achieved its progress in almost all spheres of business. Challenges from the banking industry, global and local economic realities are being managed prudently. Required level of skills and upgradation of automation required to face these challenges are being assessed. Bank's mission will continue to focus on growing aggressively along with its brand while upgrading the quality of assets, augmenting interest income, growing non-funded business and improving customer service.
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Merchant Banking operation which started in 2009 is a new inclusion in the service package of the Bank. Before the end of first half of 2010, the Bank plans to transfer its merchant banking operation under a subsidiary company called Agrani Equity and Investment Limited wholly focused on merchant banking business. License has been obtained for Islamic Banking operation and initially it will be opened in five branches as separate units in 2010. The bank is already in the process of choosing robust and integrated software which includes ATM Network, online banking to provide more value added services to customers. Moreover the policies of recruitment of skilled manpower, good corporate governance practices, and sound risk management will be pursued. We will make every effort to earn an operating profit of Tk. 900 crore, maintain minimum capital adequacy, reduce classified loan at a minimum level and to do best in all sectors including deposit, credit, import, export, remittance, cost of fund etc. Moreover, we want to make visible contribution for the society in which we operate.
2009 mvj evsK gvP U evswKs BDwbU bvg mb ~ bZb z GKwU wefvM Pvjy KiQ| 2010 mvji c_ g fvMi fZi evsK GB ~ wefvMK AMY x BK z BwU G BbfgU wjwgUW bvg mY Y KiQ| gvwjKvbvaxb mnhvMx Kvvbx Zixi cwiKbv Mn Y Kiv nqQ Ges Bmjvgx evswKs eemvqi Rb jvBm Mn Y Kiv nqQ| 2010 mvj 5wU kvLv Pvjy Kivi wmv Mn ^ smY ~ Mv nKì mev P mev c` vbi Rb evsK GKwU q mdUI & qvi (GwUGg I Ab - jvBb mwy eavmn) eenvii cwiKbv y vmb I Mn Y KiQ| GQvovI cw ZwbqZ ` Rbej, eemvwqK mk Y Kiv ne| Swz K u eev cbvi cwiKbv Mn
AcvwUs gb y vdv 900 KvwU UvKv ARb , b ~ bZg gj ~ ab msiY, kb xwebvwmZ FY mew b chv q bvwgq Avbv Ges mKj LvZ hgb Avg`vwb ivwb eemv, iwgU AvniY, Znwej eq Pv AenZ msib BZvw` welq mdjZv AR b mev K c ivLe| GQvovI mgvRi `k gvb fw gKv ivLvi Pv Kie|
wnmve cZ KiY
Preparation of Financial Statements
The financial Statements, prepared by the Bank in accordance Standards with (BASs) the and Bangladesh Bangladesh Accounting Financial
evsjv`k wdbvbwmqvj
GKvDwUs w i c v w U s
vvW vvW
(weGGm),
evsjv`k Ges
(weGdAviGm)
evsjv`k evsKi weAviwcwW mvKzjvi bs 14 ZvwiL 25 gvZveK evsKi wnmve Zix Rb y , 2003 G c` dgU Kiv nqQ| 2009 mvji kl cY xZ wnmve cK Z wP gi djvdj Ges bM` ce vn d z U DVQ| eemvwqK Kvh BZvw` mwVKfve cw ZdwjZ nqQ| evsK KvvbxR Gv 1991 Ges Abvb mKj mswk A v B bv bm y vi wnmve c Z Kiv nqQ hv h_vh_fve wbixKMY KZK wbixwZ nqQ|
Reporting Standards (BFRSs) and in the format prescribed by Bangladesh Bank vide BRPD Circular No. 14 dated 25 June 2003, give a true and fair view of the state of the Banks affairs as at December 31, 2009 and of the results of its operations and of its cash flows for the year ended December 31, 2009 and comply with the applicable sections of the Bank Companies Act 1991 and other applicable laws and regulations. The financial statements have been duly certified by the statutory auditors with an unqualified report.
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93
Dividend Declaration
Considering the Capital Adequacy Requirement (CAR), the Board of Directors did not recommend any cash dividend for the year 2009. However, the Board of Directors recommend stock dividend @ of 1:10 (i.e 1 bonus share for every 10 shares) for approval in the Annual General Meeting.
jfvsk NvlYv
evsKi fwelr KvwcUvj GvwWKwm weePbvq iL cwiPvjbv y v w ik cwil` KZK 2009 mvji Rb bM` jfvsk c` vbi mc r cw ZwU 10 Kiv nqwb| Ze 1:10 Abc y vZ evbvm kqvi (A_v y i Rb evwlK mvaviY kqvii Rb 1wU Ki evbvm kqvi ) Bm y vwik Kiv njv| mfvq Ab y gv`bi wbwg mc
Appointment of Statutory Auditors

A Qasem & Co. Chartered Accountants and Zoha Zaman Kabir Rashid & Co., Chartered Accountants have served as the external statutory Auditors of the Bank for the consecutive three years ending 31 December Accordingly, 2009. As per has Bangladesh been Banks for guidelines they are not eligible for re-appointment. notice served appointment of Auditors. New auditors from among the A category audit firms enlisted by Bangladesh Bank will be appointed in the upcoming AGM for the next accounting year. By now eight A category audit firms have already expressed their willingness to act as statutory Auditors of the Bank for the year 2010. Annual General Meetings Third Annual General Meeting of the bank will be held on 29 April 2010.
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Acknowledgements
The success that the Bank achieved during the year under review would not have been possible without the contribution of various groups of stakeholders. The Board puts on record its grateful compliments to all valued customers who stayed supportive in strengthening the relationship between them and the Bank. Next, the Board thanks the patrons, wellwishers, Government of Bangladesh, Bangladesh Bank and Registrar of Joint Stock Companies and Firms for their continued support and co-operation
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to the Bank. The Board also thanks M/S. A. Qasem & Co, Chartered Accountants and Zoha Zaman Kabir Rashid & Co., Chartered Accountants, the auditors of the Bank, for their timely completion of audit of Financial Statements.
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The employees including the members of top management of the Bank demonstrated their total commitment in taking forward the agenda for improvement in different spheres of the banking operation. The Board takes this opportunity to thank them all. Finally, the Board specially thanks the respected Shareholders and assures them that it will continue to add to the Shareholders wealth through further strengthening and development of the Bank in which they have placed trust and confidence. For and on behalf of the Board of Directors
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Khondoker Bazlul Hoque, Ph D. Chairman
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CORPORATE GOVERNANCE
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CORPORATE GOVERNANCE
Focus
Corporate governance is an internal control system encompassing policies, processes and people which serves the needs of the shareholders and other stakeholders by directing and controlling management activities with business objectivity, accountability and integrity. Agrani Bank Limited is always committed to adopt highest governance standards for attaining better operational goals. Corporate Governance at the Bank is defined as the framework by which the Bank is directed to facilitate and control the mutual relationship among the management, the Board of Directors, Government and other stakeholders, such as employees, clients and lenders. The collective role of the Board of Directors, Managing Director & CEO and the Audit Committee of the Bank ensure excellence in corporate governance practices.
The activities of the Bank are always conducted in adherence to highest possible ethical standards for the best interest of the stakeholders.
Board Structure and Its committee

The Board of Directors consists of 13 members, including Managing Director & CEO. It has only one committee - Board Audit Committee. Consequent upon the corporatisation, the Board now exercises greater autonomy to run the organization more actively and effectively than ever before. The composition of the Board of Directors and the Audit committee are given in the page .. and . of the Annual Report.
Changes in the Board of Directors

During 2009, a number of changes were made in the Board of Directors. Mr. Siddiqur Rahman Choudhury, Air Cdre Syed Imtiaz Hussain, ndu, psc, Captain Jamilur Rahman Khan (Retd.), Mr. Md. Aftab Uddin Khan, Mr. Muhammed Farhad Hussain FCA, Mr. Syed Abdul Muqtadir, Dr. Nazma Begum, Mr. Mahbubur Rahman and Mr. Sheikh Abdul Hafiz FCA retired from the Board of Directors. On the other hand Mr. Dr. Khondoker Bazlul Hoque, Mr. Shekhar Dutta, Mr. Nagibul Islam Dipu, Engineer Md. Abdus Sabur, Barrister Zakir Ahammad, Mr. Sahzada Mohiuddin, Mr. Abduz Jahir Chowdhury (Sufian), Mr. K.M.N. Manjurul Hoque Lablu, Mr. A.K. Gulam Kibria FCA, Ms. Luna Shamsuddoha and Mr. Syed Bazlul Karim, BPM joined as Directors of the Board during the year 2009.
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Meetings of the Board During 2009

During 2009, 70 Board meetings were held. The attendance of each director is as follows:
Sl. # 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. 13.
Name of Directors Khondoker Bazlul Hoque Ph D. Mr. Ranjit Kumar Chakraborty Mr. Shekhar Dutta Mr. Nagibul Islam Dipu Engineer Md. Abdus Sabur Barrister Zakir Ahammad Mr. Sahzada Mohiuddin Mr. Abduz Jahir Chowdhury (Sufian) Mr. K.M.N. Manjurul Hoque Lablu Mr. A.K. Gulam Kibria, FCA Ms. Luna Shamsuddoha Mr. Syed Bazlul Karim, BPM Mr. Syed Abu Naser Bukhtear Ahmed, B.Sc, MBA
Position Chairman Director Director Director Director Director Director Director Director Director Director Director Managing Director & CEO
Date of appointment 16.09.2009 13.12.2006 09.09.2009 09.09.2009 09.09.2009 09.09.2009 09.09.2009 14.09.2009 14.09.2009 24.09.2009 24.09.2009 22.10.2009 13.04.2008
Number of meetings attended 19 45 19 17 18 19 17 14 19 16 14 13 57
The attendance of each previous director during the year 2009 is as follows: Sl. # 01. 02. 03. 04. 05. 06. 07. 08. 09. Name of Directors Mr. Siddiqur Rahman Choudhury, Air Cdre Syed Imtiaz Hussain, ndu, psc, Captain Jamilur Rahman Khan (Retd.), Mr. Md. Aftab Uddin Khan, Mr. Muhammed Farhad Hussain, FCA Mr. Syed Abdul Muqtadir Dr. Nazma Begum Mr. Mahbubur Rahman Mr. Sheikh Abdul Hafiz, FCA Position Chairman Director Director Director Director Director Director Director Director Date of resignation 16.09.2009 08.06.2009 16.09.2009 16.09.2009 16.09.2009 16.09.2009 16.09.2009 05.01.2009 07.05.2009 Number of meetings attended 50 22 51 42 46 48 43 1 19
Independent Directors
All members of the Board got nominated by the Government, and each of them holds one share which is less than one per cent (1%) of paid-up shares of the Bank. Mr. Ranjit Kumar Chakraborty is an Additional Secretary of Ministry of Finance,
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Government of the People's Republic of Bangladesh and all other directors are from different professions and from private sector. As per Notification of Securities and Exchange Commission (Ref # SEC/CMRRCD/2006-158/Admin/02-08, dated 20 February 2006 ), all of them can be justifiably considered as independent directors.
Chairman of the Board and Managing Director & CEO

The Chairman of the Board and the Managing Director & CEO of the Bank are two separate individuals. The Chairman is Dr. Khondoker Bazlul Hoque and Managing Director & CEO is Mr. Syed Abu Naser Bukhtear Ahmed, B.Sc, MBA.
Role of the Board of Directors

The Board plays a decisive role in the total affairs of the Bank. For the overall growth of the Bank, the Board delivered important instructions and guidelines in all major areas to achieve its objectives. The Board of Directors mainly deals with formulation of business policies, service policies, approval of large credit proposals, reschedule of loans, remission of interest, annual budget and audited accounts of the Bank. During the period under review, the Board of Directors took important decisions on different administrative and policy matters that helped to achieve the desired goal of the Bank.
Internal Control Compliance

The Board is responsible for ensuring the operation of systems of internal control and for taking reasonable steps to safeguard the assets of the Bank and for preventing and detecting fraud and other irregularities. Audit Manual and Audit Implementation Manual have been introduced to ensure proper internal control. Through the Audit Committee, the Board has reviewed the assessment of risks and the internal control and has considered the effectiveness of the system of internal control in operation in the Bank for the period under review. The Directors Report on internal control is given in page . of this Annual Report.
Business Risk Management

It is important for the Bank to evolve its risk management strategy in a way that best protects our interests against any insidious transactions. According to the instruction of central bank, the Bank has introduced Risk Management Manuals in five areas. These are: Credit Risk, Asset Liability Management Risk, Forex Management Risk, Internal Control and Compliance Risk and Money Laundering Risk. The Bank will establish very soon a structured framework for risk management, which is intended to balance risk against returns and will comprise four broad processes.
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Credit Risk
The Credit Risk Management Manual serves as a guide to effectively avert risks involved in lending activities of the Bank. We have put into practice the concepts of front, middle and back offices to ensure segregation of duties that calls for each individuals precise responsibilities within the area he performs. The Credit Risk Grading System (CRG) is introduced for making proper lending decisions. All credit officers have been trained and groomed on CRG system, including their superiors at controlling offices. A Credit Committee (CRECOM) has been formed at Head Office to oversee and scrutinize risks involved in the process and give final recommendation in each credit proposal. Special attention was given for recovery and other action in the case of downgraded large loan borrowers.
Asset Liability Management Risk

The Banks Asset Liability Committee (ALCOM) continued to hold its meetings regularly to review both the opportunities and threats to its liquidity and balance sheet positions as well as positions of maturing assets and liquidity contingency plan. The Bank kept its liquidity at satisfactory level to cater to the needs of all types of customers.
Foreign Exchange Management Risk

Foreign exchange risks arise from the variation in rates of exchange that prevail at domestic and international markets. Fund Management Division handled the forex and money market operations, including treasury function with maximum efficiency.
Internal Control and Compliance Risk

In line with the guidelines of Government and Bangladesh Bank, the Bank has introduced Audit Manual and Audit Implementation Manual for its branches to meticulously stick to the procedures as laid down therein. An Internal Control Unit has also been established to ensure control at every level of branch operation. Under the Internal Control Team (ICT), a squad of experienced personnel visits branches time and again to identify and correct operational lapses, if any. The Boards Audit Committee reviews reports of audit and inspections submitted by Audit and Inspection Division and suggest actions to remedy the lapses identified in the reports.
Money Laundering Risk

The Bank has continued its anti-money laundering stance with an emphasis to bring all the branches under exhaustive training programs inside and outside the Bank. In 2009, 373 Officers and Staff members were trained on prevention of Money Laundering through Agrani Bank Training Institute (ABTI). The Bank maintains meticulously the records of Know Your Customer (KYC) and Transaction Profile (TP) and send Cash Transaction Report (CTR) and Suspicious Transaction Report (STR), if any, Know Your Customer (KYC) statements and Branch wise Anti Money Laundering Compliance Officers (BAMCO) list to Bangladesh Bank.
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Credit Rating
In 2007, the Bank appointed Credit Rating Information and Services Limited (CRISL) for credit rating of the Bank as per directives of Bangladesh Bank. The rating company assigned Triple-A to the Bank in the long run and ST-1 in the short term. This rating has been done in consideration of the guarantee of the Government of the Peoples Republic of Bangladesh being the highest risk free entity. Financial institutions rated in this category have the best quality, offer the highest safety and have the highest credit quality.
Board Audit Committee

The Audit Committee consists of 03 members. The name of the members of Audit Committee along with their status are stated below:
Sl. # 01. 02. 03. Name of Members Mr. Ranjit Kumar Chakraborty Engineer Md. Abdus Sabur Mr. A.K. Gulam Kibria, FCA Status in Bank Director of the Board Director of the Board Director of the Board Status in the Committee Chairman Member Member
Al the members of the Committee are non-executive directors.
Role of Audit Committee

The Boards Audit Committee of the Bank has been playing a vital role in strengthening internal control and compliance functions of the Bank. This Committee ensures all sorts of co-operation between the management and the ultimate supervisory authority the Board of Directors. The Committee is performing a vital role by identifying various risk factors that arise from the business activities of the Bank, by periodically reviewing the audit reports for safe, sound and disciplined banking operations. Besides these, the Committee has directed the officials concerned to prepare risk-based audit planning, reduce the number of objections of the same nature raised by internal audit by categorizing them according to the nature of objections and re-defining them as serious and very serious objections.
Meetings of Audit Committee During 2009
4 meetings of the Committee were held in 2009. The attendance of each member in 2009 is as follows: Sl. # 01. 02. 03. Name of Members Mr. Ranjit Kumar Chakraborty Engineer Md. Abdus Sabur Mr. A.K. Gulam Kibria, FCA Status in the Committee Chairman Member Member Date of joining 13-12-2006 16.09.2009 30.09.2009 Number of meetings attended 02 01 01
The attendance of each previous member of the Audit Committee during the year 2009 is as follows: Sl. # 01. 02. Name of Directors Mr. Muhammed Farhad Hussain, FCA Mr. Sheikh Abdul Hafiz, FCA Status with the Committee Member Member Date of resignation 16.09.2009 07.05.2009 Number of meetings attended 03 03
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Role and Function of Audit & Inspection Division

The Internal Audit & Inspection Division plays a vital role in ensuring proper internal control over the Banks activities. The Audit & Inspection Division was established to ensure whether internal controls are well established and properly operating. The Division works to ensure that the activities of the Bank are in accordance with the applicable rules and regulations of Bangladesh Bank, Bank Companies Act 1991, Companies Act 1994 and internal rules, regulations and policies of the Bank. An Internal Control Unit was also established to ensure control at every level of branch operation. Under the Internal Control Team (ICT), a squad of experienced personnel visits branches time and again to identify and correct operational lapses, if any. The Audit Committee reviewed reports of audit and inspections submitted by the Division and suggested actions to remedy/address the lapses identified in the reports.
The work of this Division is conducted by 35 employees headed by a DGM. 357 branches were audited in 2009 and 242 branches were audited in 2008 by this division. The head of the Internal Audit & Inspection Division has direct access to the Audit Committee, which helps to maintain its independence.
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DIRECTORS STATEMENT OF RESPONSIBILITIES
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DIRECTORS STATEMENT OF RESPONSIBILITIES

BRPD Circular# 06 dated 4th February 2010 issued by Bangladesh Bank sets out the responsibilities of the Directors of a bank. In accordance with the same, the responsibilities of the Directors of Agrani Bank Limited encompasses the following:
a.
Work plan and strategic management:
Responsible to determine objectives and targets of the Bank and to formulate annual strategies and work plan. The Directors are to drive organizational change to improve the quality of the Bank in order to achieve the objectives and targets and to analyze the progress of implementation of work plan on a quarterly basis.
Responsible to determine the key performance indicators (KPI) of CEO and other senior executives and evaluate the same from time to time.
b.
Credit and risk management:

Responsible to evaluate the proposals of Loans and Advances. The Directors are to prepare the policies and procedure to evaluate, distribute, recover reschedule and write-off Loans and Advances as per applicable rules and regulations. They may delegate power to the CEO and other senior executives to approve loans and advances as deemed necessary. Responsible to prepare the risk management policies. They are also to analyze whether the risk management policies are followed accordingly on a quarterly basis. Responsible for maintaining proper internal control to ensure the quality of Loans and Advances. They are to evaluate the report of Audit Committee regarding the implementation suggestions from internal audit, external audit, and Bangladesh Bank on a quarterly basis.
c.
Internal control management
d.
Human resources management and development
Responsible to approve the policies and service rules for appointment, promotion, transfer, punishment and development of human resources.
e.
Financial management

Responsible to approve the annual budget and statutory financial statements.
Responsible to evaluate the income, expenses, liquidity, expired/ uncollected Loans and Advances, sufficiency of capital, maintenance of provisions and legal actions to recover the Loans and Advances on a quarterly basis. Responsible to prepare policies and procedures for procurement and approve expenditures as per existing policies and procedures.
f. g. h.
Committee formation Appointment of CEO
Responsible for the formulation of the Audit Committee from the Directors of the Board. Responsible to appoint a competent CEO with the approval from Bangladesh Bank.
Responsible to perform any other responsibilities as may be determined by Bangladesh Bank time to time.
For and on behalf of the Board of Directors
Khondoker Bazlul Hoque, Ph D. Chairman
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Report of the Audit committee
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Photo Chairman Audit Committee
Report of the Audit committee

The Audit Committee of the Board was duly constituted by the Board of Directors of the Bank in accordance with BRPD circular#12 dated December 23, 2002 of Bangladesh Bank. The Committee has been playing a vital role in maintaining an efficient and effective banking system. This Committee ensures all sorts of co-operation between the management and the ultimate supervisory authority - the Board of Directors. The Committee is performing a vital role by identifying various risk factors that arise from the business activities of the Bank.
Role of the Committee

i. ii. iii. iv. v. vi. vii. viii. Review the Internal Control system of the Bank to ensure that sufficient risk management system is in place to manage core risk of the Bank; Review the efficiency and effectiveness of Internal Control System; Consider the recommendations made by the internal and external auditors; Ensure fair presentation of financial statements in compliance with the Bangladesh Accounting Standards/ Bangladesh Financial Reporting Standards; Review the Internal Audit procedure; Review compliance with the applicable rules and regulations of Bangladesh Bank, Bank Companies Act 1991, Companies Act 1994; Report immediately to the Board of Directors on conflict of interest; Report to the Board of Directors on frauds or irregularities or material defects in the Internal Control System.
Composition of the Committee

The members of the Audit Committee are: a) b) c) Mr. Ranjit Kumar Chakraborty Engineer Md. Abdus Sabur Mr. A.K. Gulam Kibria, FCA Chairman Member Member
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Meetings
During the year 2009, 03 (three) meetings of the Committee were held as against 04 (four) of 2008. In the meetings, the Committee met with the high officials of Internal Audit, Financial Administration, Credit, Legal and Internal Control & Compliance Divisions and also with the external auditors to consider and resolve the financial reporting issues, findings and recommendations made by the Bangladesh Bank inspection team, internal auditors and external auditors.
Activities During the Year

Important decisions were taken by the Committee in the meetings held during the year 2009. During the year 2009, the activities performed by the Committee were as follows: i. ii. iii. iv. v. vi. vii. Reviewed the terms of reference of the Committee as mentioned in BRPD Circular No#12 dated December 23, 2002 of Bangladesh Bank; Reviewed the Internal Audit Plan for the year 2010; Reviewed the 25 untraceable Pre-liberation loans and necessary action has been taken in this regard; Reviewed the comprehensive inspection report of Bangladesh Bank and status of compliance thereof; Reviewed the internal inspection report of different branches of the Bank conducted by Banks Audit and Inspection team from time to time.; Reviewed all important internal and external audit reports on different branches and suggested to reduce the number of external audit objections; The Committee also reviewed Bangladesh Bank inspection report and other aspects as indicated in the Bangladesh Bank guidelines.
Acknowledgements
The Audit Committee expresses its sincere thanks to the respected Members of the Board, Management and the Auditors for their continuous support. For and on behalf of the Audit Committee
Mr. Ranjit Kumar Chakraborty Chairman, Board Audit Committee
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Status of Compliance Requirement of Bangladesh Banks guideline for Corporate Governance (BRPD circular no 16 dated 24.07.03)
Sl No 1. Particulars Responsibilities and authorities of the Board of Directors (a) Work-planning and strategic management: (i) The Board shall determine the objectives and goals and to this end shall chalk out strategies and work-plans on annual basis. It shall specially engage itself in the affairs of making strategies consistent with the determined objectives and goals and in the issues relating to structural change and reorganization for enhancement of institutional efficiency and other relevant policy matters. It shall analyze/monitor at quarterly rests the development of implementation of the work plans. (ii) The Board shall have its analytical review incorporated in the Annual Report as regard the success/failure in achieving the business and other targets as set out in its annual work-plan and shall apprise the shareholders of its opinions/ recommendations on future plans and strategies. It shall set the Key Performance Indicators (KPIs) for the CEO and other senior executives and have it evaluated at times. (b) Lending and risk management: (i) The policies, strategies, procedures etc. in respect of appraisal of loan/investment proposal, sanction, disbursement, recovery, reschedulement and write -off thereof shall be made with the Board's approval under the purview of the existing laws, rules and regulations. The Board shall specially distribute the power of sanction of loan/investment and such distribution should desirably be made among the CEO and his subordinate executives as much as possible. No director, however, shall interfere, directly or indirectly, in the process of loan approval. (ii) The Board shall frame policies for risk management and get them complied with and shall monitor at quarterly rests the compliance thereof. (c) Internal control management: The Board shall be vigilant on the internal control system of the Bank in order to attain and maintain satisfactory qualitative standard of its loan/investment portfolio. It shall review at quarterly rests the reports submitted by its Audit Committee regarding compliance of recommendations made in internal and external audit reports and the Bangladesh Bank inspection reports. (d) Human resources management and development: i) Policies relating to recruitment, promotion, transfer, disciplinary action and punitive measures, human resources development etc. and Service Rules shall be framed and approved by the Board. The Chairman or the Directors shall in no way involve themselves or interfere into or influence over any administrative affairs including recruitment, promotion, transfer and disciplinary measures as executed under the set Service Rules. No member of the Board of Directors shall be included in the selection committees for recruitment and promotion to different levels. Recruitment and promotion to the immediate two tiers below the CEO shall, however, rest upon the Board. Such recruitment and promotion shall have to be carried out complying with the Service Rules i.e. (ii) The Board shall frame the policies and procedures for Bank's purchase and procurement activities and shall accordingly approve the distribution of power for making such expenditures. The maximum possible Compliance Status Complied NonComplied
Explanation for noncomplaince
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delegation of such power shall rest on the CEO and his subordinates. The decision on matters relating to infrastructure development and purchase of land, building, vehicles etc. for the purpose of Bank's business shall, however, be adopted with the approval of the Board. (e) Financial Management: (i) The annual budget and statutory financial statements shall finally be prepared with the approval of the Board. It shall at quarterly rests review/ monitor the positions in respect of Banks income, expenditure, liquidity, non-performing asset, capital base and adequacy, maintenance of loan loss provision and steps taken for recovery of defaulted loans including legal measures. (ii) The Board shall frame the policies and procedures for Banks purchase and procurement activities and shall accordingly approve the distribution of power for making such expenditures. The maximum possible delegation of such power shall rest on the CEO and his subordinates. The decision on matters relating to infrastructure development and purchase of land, building, vehicles etc. for the purpose of Banks business shall, however, be adopted with the approval of the Board. (f) Formation of supporting committees: For decision on urgent matters an Executive Committee, whatever name called, may be formed with the Directors. There shall be no committee or sub-committee of the Board other than the Executive Committee and the Audit committee. No alternate director shall be included in these committees. (g) Appointment of CEO: The Board shall appoint a competent CEO for the Bank with the approval of the Bangladesh Bank. 2. Responsibilities of the Chairman and Board of Directors (a) As the Chairman of the Board of Directors (or Chairman of any Committee formed by the Board or any Director) does not personally possess the jurisdiction to apply policy making or executive or authority, he shall not participate in or interfere into the administrative or operational and routine affairs of the Bank. (b) The Chairman may conduct on-site inspection of any Bank-branch or financing activities under the purview of the oversight responsibilities of the Board. He may call for any information relating to Bank's operation or ask for investigation into any such affairs; he may submit such information or investigation report to the meeting of the Board or the Executive Committee and if deemed necessary, with the approval of the Board, he shall effect necessary action thereon in accordance with the set rules through the CEO. However, any complaint against the CEO shall have to be apprised to Bangladesh Bank through the Board along with the statement of the CEO. (c) The Chairman may be offered an office-room, a personal secretary/assistant, a telephone at the office and a vehicle in the business-interest of the Bank subject to the approval of the Board. 3. Responsibilities of Adviser The adviser, whatever name called, shall advise the Board of Directors or the CEO on such issues only for which he is engaged in terms of the conditions of his appointment. He shall neither have access to the process of decision-making nor shall have the scope of effecting executive authority in any matters of the Bank including financial, administrative or operational affairs.
(Audit Committee)
(Executive Committee)
Board found it prudent to transact all relevant issues in the full Board instead of Executive Committee
Not Applicable (No such Advisior)
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4.
Responsibilities and Authorities of CEO The CEO of the Bank, whatever name called, shall discharge the responsibilities and effect the authorities as follows: (a) In terms of the financial, business and administrative authorities vested upon him by the Board, the CEO shall discharge his own responsibilities. He shall remain accountable for achievement of financial and other business targets by means of business plan, efficient implementation thereof and prudent administrative and financial management. (b) The CEO shall ensure compliance of the Bank Companies Act, 1991 and/or other relevant laws and regulations in discharge of routine functions of the Bank. (c) The CEO shall report to Bangladesh Bank of issues violation of the Bank Companies Act, 1991 or of other laws/regulations and, if required, may apprise the Board post facto. (d) The recruitment and promotion of all staff of the Bank except those in the two tiers below him shall rest on the CEO. He shall act in such cases in accordance with the approved Service Rules on the basis of the human resources policy and sanctioned strength of employees as approved by the Board. The Board or the chairman of any committee of the Board or any Director shall not get involved or interfere into such affairs. The authority relating to transfer of and disciplinary measures against the staff, except those at one tier below the CEO, shall rest on him, which he shall apply in accordance with the approved Service Rules. Besides, under the purview of the human resources policy as approved by the Board, he shall nominate officers for training etc.
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Annual Report 2009

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Agrani Bank Bhaban 9D Dilkusha Commercial Area, Dhaka-1000, Bangladesh www.agranibank.

Agrani Bank Limited

Annual Report for the year ended 31 December 2009.

Dear Sir (s)

NOTICE OF THE THIRD ANNUAL GENERAL MEETING

Dated : 08 April 2010

By Order of the Board of Directors

Md. Ekramul Hakim Company Secretary

OUR STRATEGIC OBJECTIVES

OUR ETHICAL STANDARDS

4. Be Transparent: We are transparent in our

5. Be involved with the Community: We remain

6. Be Respectful: We treat all stakeholders with

Khondoker Bazlul Hoque Ph D. Chairman

Shekhar Dutta Ranjit Kumar Chakraborty Director Director

Nagibul Islam Dipu Director

Engineer Md. Abdus Sabur Director

Barrister Zakir Ahammad Director

Sahzada Mohiuddin Director

Abduz Jahir Chowdhury (Sufian )Director

K.M.N. Manjurul Hoque Lablu Director

A.K. Gulam Kibria, FCA Director

Luna Shamsuddoha Director

Syed Bazlul Karim, BPM Director

Company Secretary Md. Ekramul Hakim

Board of Trustees of Agrani Bank Limited Employees Provident Fund Trust

K.M.N. Manjurul Hoque Lablu Chairman & Director of the Board

A.K. Gulam Kibria, FCA Member & Director of the Board . . .

A. K. M. Mujibur Rahman Member & General Manager

Income Tax Advisor

Credit Rating Company

Md. Fayekuzzaman Dr. Md. Nurul Alam Talukder

GENERAL MANAGERS Md. Mofazzal Husain

Md. Monir Uddin

Md. Enamul Hoque

Md. Obayed Ullah Al Masud

Mohammad Shams-Ul Islam

Md. Khurshed Hossain

DEPUTY GENERAL MANAGERS

Photos of top management team

FIVE YEARS' PERFORMANCE AT A GLANCE

Major Achievements in 2009

Graphical Presentation of performance

Photo of the Chairman

May the Almighty Allah bless us all in our future endeavors.

Khondoker Bazlul Hoque, Ph D. Chairman The Board of Directors

a. Distribution of Shares in 2009

b. Shares held by Directors as on 31 December 2009

c. Annual General Meetings

Photo with caption of First AGM

The second annual general meeting was held on 17 August 2009.

Photo with caption of Second AGM

The third annual general meeting will be held on 29 April 2010.

Photo with caption of Signing Accounts by Directors

Performance during the year

At the end of the year

Profitability and performance ratios

Liquidity and solvency ratios

Capital adequacy ratios

Maintaining Capital Adequacy

12,052.44 8.22% 5.89% 2.33% 964.20 27.25

Value Added Statement

350.11 170.00 65.15 45.70 6.94 44.92 682.82

51.27% 24.90% 9.54% 6.69% 1.02% 6.58% 100.00%