Agrani Bank Ltd.

Prepared for

Prepared by

MGT 210.2

1) Md. Abul Bashar Biplob 1511697030

Shahid Hossain

2) Sabrina Samad

1511425030

(SHH)

3) Nusrat Jahan Lamia

1511751030

Spring, 2016

4) Shifa kaiser

North South University

5) Sajidul Islam Sajal

1512612030
1511483630

Letter of acknowledgement

First of all we would like to take the opportunity to thank my course instructor Shahid
Hossain, Lecturer, Department of Business Administration, North South University for giving
the necessary guidance in preparing this paper. He guided me and showed us the way to
prepare this paper and made it possible for us to present the project in such meaning manner.
We are highly indebted to the Agrani Bank Limited officials, especially MD. Abdus Samad,
AGM, Agrani Bank Limited, Dhaka without his help, this report would not have taken this
form. In spite of their occupation, they extended their co-operation to make the report work a
success. We also acknowledge the contribution of North South University, My family and
friends for their valuable time and sincere efforts to lead me in this journey towards
excellence.
Above all, I want to acknowledge and most grateful almighty Allah, the most merciful for
blessing me with patience and tenacity of mind to complete the requirements for the degree
successfully.

NAME

Signature

1. Md. Abul Bashar Biplob

2. Nusrat Jahan Lamia
3. Sabrina Samad
4. Shifa Chowa
5. Sajid Islam Sajal

Table of Contents
Mission Statement

Executive Summary

Officers of the Firm

Organogram

10

Situational Analysis

11

External Factors

11

1. Political Factor

11

2. Economical factor

12

3. Legal factor

12

4. Social factor

12

5. Environmental factor

13

6. Technological factor

13

7. Competitior

13

8. Customer

14

Internal Factors

15

1. Levels of Management

15

2. Employees

16

3. Financial Status

16

4. Human Resource Management and Development

17

5. Internal control and compliance

17

SWOT ANALYSIS
Strength

18
19

1. Modern facilities and online banking

19

2. Good customer service

19

3. Company reputation

19

4. Top Management

19

5. State owned bank

19

Weakness

20

1. Advertising and promotion

20

2. Working environment

20

3. Training

20

4. Promotion

20

Opportunities

21

1. Diversification

21

2. Micro credit business

21

3. More branches

21

4. High demand of Remittance facility

21

Threat

22

1. Level of Competition

22

2. Compensating Package

22

3. Bangladesh banks rules and regulation

22

4. New banks

22

5. Political Unrest

22

Management issues

23

(I) Organizational structure

23

(II) Departmentation

23

1. Deposits Schemes

24

2. Loans and advances

24

3. Foreign department and other services

24

(III) Leadership of Agrani Bank Ltd.

25

Objectives of Agarani Bank Ltd.

26

Recommendation

27

Conclusion

28

Bibliography

29

Mission Statement
To ensure corporate governance, accountability, integrity, transparency and regulatory
compliance in the operation of the stringent frame work to achieve the international standard
of banking and to operate ethically and fairly within the stringent framework to improve our
business policies and procedures to benefits of our customer and employees and specially the
whole nation.

Executive Summary
In the year 1972, after the independent of Bangladesh, Agrani bank, in pursuance of
Bangladesh Bank (nationalization) order 1972 (P.P. No-26 of 1972) came into being in 1971
taking over assets and liabilities of the east while Habib Bank LTD and Commerce Bank LTD
functioning in the East Pakistan. The bank started operation with 249 branches with its head
office in Dhaka. In principle, it changed its motto from class banking to mass banking. As
there had been poor banking structure and it failed to build sound banking infrastructure by
local entrepreneurs before independence and the newly born independent country was down
with enormous economic problem, the new govt. Agrani Bank, as a nationalized commercial
bank, has emphasized a lot more on providing services than on extraction profits
conventionally. Keeping this in view the banks expansion of network and its activity have not
been kept confined to urban areas only but also have been spread to pastoral vicinities. Its
authorized capital now increased from Tk. 5.00 crore in 1972 to Tk. 800.00 crore in 2002,
paid up capital increased from Tk. 1,00 crore to Tk 248.40 crore, total number of branches
increased from 249 to 867, officers increased from 796 to 6597 and staff increased from 1471
to 5534 during the period from 1972 to 2007. (www.financeokey.com, 2013)
Agrani Bank Limited (the Bank) has been incorporated as a Public Limited Company on May
17, 2007 Vide Certificate of Incorporation No. C-66888 (4380)/07. The Bank has taken over
the business of Agrani Bank (emerged as a Nationalized Commercial Bank in 1972, pursuant
to Bangladesh Bank (Nationalization) Order No. 1972 (P.O. # 26 of 1972)) on a going
concern basis through a Vendor Agreement signed between the Ministry of Finance of the

Peoples Republic of Bangladesh on behalf of Agrani Bank and the Board of Directors on
behalf of Agrani Bank Limited on November 15, 2007 with a retrospective effect from July
01, 2007. The Banks current shareholdings comprise Government of the Peoples Republic
of Bangladesh and 12 (Twelve) other shareholders nominated by the Government. The Bank
has 921 branches and 05 windows are working under Islamic Banking Unit complying with
the rules of Islamic Shariah. (Agranibank.org)
Agrani Bank LTD performed relatively well and posted solid result with a growth in
important areas of operation and brings improvement in activities. During the half year ended
on June 30, 2015 the Bank has earned an operating profit of TK.4.96 billion, mobilized total
deposits to TK.407.83 billion which recorded a growth of 6.23% over the deposits of
December 31, 2014. Import business is TK. 47.29 billion, remittances TK. 69.80 billion and
export is TK. 37.76 billion. The total foreign exchange business stood at TK. 154.85 billion &
net interest income is TK. 0.81 billion. (Half Yearly Report 2015)
Agrani Bank Limited is operating efficiently with its existing products and services. In
service-oriented industry, it is very difficult to set a standard rule to satisfy the customer.
Several factors shape up the decision of taking the service from an organization. The services,
which the Bank provides to their clients, are very prompt and quality one compare to other
private or foreign banks. The bank made satisfactory progress in all areas of business
operation. So Agrani Bank Limited is the bank, which will go on in the banking sector of the
world with their slogan "Committed to serve the nation. (JAHAN, 2014)

Officers of the Firm

Name

1. DR. Joyad Bakhat

2. Monjurul Haq Lablu

3. Sayed DR. Abdul Hamid

4. Abdul Auwal Khan

5. Anisur Rahman

Title
Chairman

Director

MD & CEO

DMD

GM

6. Nazrul Islam

DGM

7. MD. Abdus Samad

AGM

Organogram
Chairman
Board / Executive
Managing Director
Additional MD

DMD
(CRM)

Head of
Central
Accounts
Department

Leasing
Unit

Head of
Marketing

Stationery

DMD
(ID,
ICCD,PD)

Credit
Approval

Recovery
Credit
Admnistratio
n&
Monitoring

Situational Analysis
Situation analysis refers to a collection of methods that managers use to analyze an
organization's internal and external environment to understand the organization's capabilities,
customers, and business environment. The situation analysis looks at both the macroenvironmental factors that affect many firms within the environment and the microenvironmental factors that specifically affect the firm. The purpose of the situation analysis is
to indicate to a company about the organizational and product position, as well as the overall
survival of the business, within the environment. Companies must be able to summarize
opportunities and problems within the environment so they can understand their capabilities
within the market. (wikipedia, 2015)
As a financial organization, Agrani Bank Ltd has to deal with the external and external
environment. Those items which has direct and indirect impact on Agrani Bank Ltd are
discussed below:

External Factors
The external environment consists of a variety of factors outside of a company doors that
one typically don't have much control over. Organizations can face problems from external
factors, which can affect products, policies, people and profits. The factors which creates
impact on Agrani Bank Ltd. are given below:

1. Political Factor
The political factors affecting business are often given a lot of importance. Several aspects of
government policy can affect business. All firms must follow the law. Managers must find
how upcoming legislations can affect their activities. Political factors play a vital role in the
activities of Agrani Bank Ltd. Since the Agrani bank is 100% government body owned, the
government body or the political pressure some time make the department to grant the loan to
the project which is not viable and feasible. This creates a lot of problems to recover the loan

10

and the loan deemed to be bad. Also other political violences such as Hortaal or Oborodh
also hampers regular banking activity of Agrani Bank Ltd.

2. Economical factor
Since the world economy is moving towards a recession, so Bangladesh is no exception to the
economic instability and uncertainty and Agrani Bank Ltd has to operate within such
economic environment. The money supply and the aggregate demand of the economy are
great influences that affect the banking sector. In Bangladesh national savings rose only
slightly, indicating the slow growth in bank deposits and is low by International standards.
The causes of low savings have been the low per capita income, high dependency ratio,
urbanization, lack of proper infrastructure in rural areas and inflation leading to rise in prices.
Inflation is high due to high food prices, which offset the demand management policies. As a
result of high inflation, poverty is high and the productive capacity is stressed. Hence, Agrani
Bank Ltd is affected by all this facts related to Bangladesh economy as it is perform its
business in this country.

3. Legal factor
Legal practices of any country have a direct impact on the business operation of that country.
The instability of the legal system and lack of freedom of the judiciary has impaired the
growth of the economy as investments have slowed down in Bangladesh. The law and order
situation has become from bad to worse. The potential foreign investors have backed out and
those who have already invested face threats and insecurity. The recent past is filled with the
bomb blasts and attacks on peoples and as a financial organization; Agrani Bank Ltd has to
take appropriate decisions to cop up with these legal factors.

4. Social factor
Since the rise in prices, the general public has become conscious towards their spending and
is facing a decrease in their disposable income. They are saving less and as a result the
growth in the bank deposits has slowed down. Due to the political, economical and law &
order situation being very uncertain, there is lack of trust found in the people of Bangladesh

11

on the financial institutions. Another aspect that adds to it is that people are less educated and
unaware of how system works so rumors create great panic that result in problems in
financial sector, hence affects Agrani Bank Ltd also.

5. Environmental factor
The environmental factors include geographical location, the climate, weather and other such
factors that are not just limited to climatic conditions. The location of Bangladesh on the map
influence on the trades that businesses do. Several environmental adverse conditions such as
natural disaster and the probability of hurricanes, floods, earthquakes, tsunami etc. make it
riskier for Agrani Bank Ltd to invest in some areas of Bangladesh.

6. Technological factor
With the advancement in technology and the increase of its usage, it has created many
opportunities to all kinds of industries. There are now Automated Teller Machines (ATM) that
have replace the conventional tellers, the whole banking systems have been automated
assuring transparency in the system as a result of which the trust of the consumer has been
gained. The Internet technology has provided new avenues to work as online banking system
is a common phenomenon in the west and is gaining popularity in Bangladesh too. Many
mobile and telecom companies are collaborating with the bank to reach out to the customers
even more efficiently and conveniently. This has raised the level of the competition thus
raising the pressures to compete in unique ways to add value to the customer of Agrani Bank
Ltd.

7. Competitor
Since there are now so many foreign banks are investing directly in the banking sector of
Bangladesh and local banks also trying to develop their quality with the change of time. So
foreign and local banks now tend to compete more directly with one another over the same
group of consumers. Foreign banks are the indirect competitors of Agrani Bank Ltd and local
banks are the direct competitors that are striving for the same market share and customers.
Besides advances in information technology have significantly reduced the barriers to entry

12

in the banking industry for new banks. Prospective customers all over the world could access
the Internet and search for banks offering the highest interest rates or services with the best
features. Furthermore, new banks will also be able to compete by using IT to reduce their cost
and extend their distribution channels. Another factor that lowers the barrier to entry would
be the low switching cost, for example, the transfer of credit card balances from one bank to
another. They are trying to capture the upper middle and the middle-middle class segment
that are currently the customers of the Agrani Bank Ltd. With their relatively low interest
rates charged to the customers and higher interest payback rates compare to Agrani Bank Ltd.

8. Customer
Todays banking customers are conditioned to want personal, relevant experiences that reflect
how, when and where they want to bank. Now bargaining power of customers is relatively
high, as switching costs are low for customers to leave Agrani Bank Ltd and gain banking
services from other banks. Agrani Bank Ltd. uses modern technology to serve the customers
and provides updated Credit and Deposit scheme to the customers, error less account service,
hassle free services and provides services within the time promised to bring the satisfaction of
customers. The bank has targeted a broad market, which includes customers of all ages,
genders, and customers with any income capacity. Due to its large network of 902 branches,
and 190 online braches it is able to stand upon its huge customer demands and keep them
satisfied.

13

Internal Factors
The internal business environment comprises of factors within the company, which impact
the success and approach of operations. Unlike the external environment, the company has
control over these factors. These are human technological, financial and physical resources.
The task of management is to acquire these resources and make efficient and effective use of
them within an organization. In this task the management of each business is in competition
with all other businesses in the life. Organizational resources are therefore scarce and
management success depends on how well these resources are both acquired and used.
Internal factors of Agrani Bank Ltd are mainly levels of management, financial condition,
human resource, human resource policies and so more that are described below:

1. Levels of Management
Manager organizes the firm to achieve goals. They decide which department gets how much
funds, to assign tasks and initiate procedures. There are three levels of management in Agrani
Bank Ltd.:
(a) Strategic: Strategic level of Managers plans a high-level overview of the entire
business, its vision, objectives, and value. This plan is the foundational basis of the
organization and will dictate decisions in the long-term. The top-level managers Chairman,
Board of Directors of Agrani Bank Ltd. are located at the strategic level of management.
They allocate resources to all departments and set goals. They examine where the company
is now, decide where it should go and determine how to get in there.
(b) Tactical: Tactical managers are those who co-ordinate activities with the strategic
and operational levels. Tactical mangers of Agrani Bank Ltd. are Managing Director and
Deputy Managing Director. They involve with the actual steps needed to achieve the vision
that sets by strategic managers. They support strategic plans by translating them into specific
plans relevant to a distinct area of the organization. Tactical plans are concerned with the
responsibility and functionality of lower-level departments to fulfill their parts of the strategic
plan.

14

(c) Operational: Operational managers sit at the bottom of management levels.

Operational managers of Agrani Bank Ltd. are General Manager and Assistant General
Manager. They managed by the tactical managers of the firm. All operational plans are
focused on the specific procedures and processes that occur within the lowest levels of the
organization. Managers must plan the routine tasks of the department using a high level of
detail.

2. Employees
At present, approximately 15000 employees are working at Agrani Bank to meet the needs of
customers and fulfilling the objectives. They are given training and direction upon
employment about which job has to be carried on, when and how. The manager here plays a
huge role of providing guidance. The management style for Agrani Bank is team-oriented
since their target is broad market and everyone here works hard and together to achieve a
mutual target.

3. Financial Status
Agrani Bank LTD performed relatively well and posted solid result with a growth in
important areas of operation and brings improvement in activities. During the half year ended
on June 30, 2015 the Bank has earned an operating profit of TK.4.96 billion, mobilized total
deposits to TK.407.83 billion which recorded a growth of 6.23% over the deposits of
December 31, 2014. Import business is TK. 47.29 billion, remittances TK. 69.80 billion and
export is TK. 37.76 billion. The total foreign exchange business stood at TK. 154.85 billion &
net interest income is TK. 0.81 billion. (Half Yearly Report 2015). The Banks foreign trade
related activities, carried out through 40 AD branches across the country, are well run by our
skilled manpower to earn confidence of importers, exporters and Bangladeshi workforce
working abroad. In 2007, the Banks export dealing stood at Tk.48.92 billion and import at
Tk.113.43 billion.

15

4. Human Resource Management and Development

Agrani Bank Ltd. treats human resource as an instrument for development. Human workforce
is the primary factor of the success of the bank. Following Corporatization, the Banks key
strategy is to set a new standard towards the full range of exploration and development of
human resources of the bank. Agrani Bank Ltd concentrated more on quality, efficiency,
creativity and professionalism in their human resources. Rationalization of manpower
continues as part of the employee productivity enhancement programmed. Under the World
Bank Enterprise Growth and Bank Modernization Project, immediate appointments of
consultants with the rank and status of General Manager for credit, Audit, Information
Technology and Accounting are now under active consideration. (assignmentpoint)

5. Internal control and compliance

Operational loss may arise from error and fraud due to lack of internal control and
compliance. According to the Bangladesh Bank guidelines, Agrani Bank Ltd. has introduced
three units under Internal Control and Compliance. The three units are: Compliance,
Monitoring and Audit and inspection. The Monitoring unit is named as Audit Implementation
Division. Internal Audit and Inception division undertakes periodical and special audit of the
branches and Division at head Office for review of operational effectiveness and
internal/external compliance requirement. (Saimon, 2014)

16

SWOT ANALYSIS
SWOT analysis is an important tool for evaluating the companys Strength, Weakness,

Internal

Beneficial

Harmful

Strengths

Weaknesses

1.Modern facilities and online

banking

1.Advertising and promotion

2.Working environment

2.Good customer service

3.Training
3.Company reputation
4.Employees promotion
4.Top management
5.State owned bank

External

Opportunities

Threats

1.Diversification

1. Level of Competition

2.Micro credit business

2. Compensating Package

3.More branches

3.Bangladesh banks rules and

regulation

4. High demand of remittance

facility.

4.New banks

5. Political Unrest
Opportunities and threats. It helps the organization to identify how to evaluate its
performance, which in turn would help the organization to navigate in the turbulent ocean od
competition. As a financial organization, Agrani Bank Limited has some strengths, weakness,
opportunities and threats, to identify the strengths, weakness opportunities and treats which
are given below:

17

Strength
1. Modern facilities and online banking
From the beginning of the 2005 Agrani Bank Ltd. tried to furnish their work surroundings
with modern equipment and facilities. For the speedy services to the customer Agrani Bnak
Ltd. has installed money-counting machine in teller counter in most of the branches. The
bank has already started to setup the online banking system all over the country.

2. Good customer service

Good customer service is another major strength of the Agrani Bank Ltd. They provide a onestop service. In a highly competitive market the quality of service rendered by the bank to
their valued customers is absolutely vital to ensure growth of both deposits loans and
advances.

3. Company reputation
Agrani Bank Ltd. has created a standing in the banking industry of the country chiefly among
the new comers. Agrani Bank is one of the oldest banks of this country. From the beginning
of the creation of our country Agrani Bank Ltd. plays a great role in the banking sector of our
country. Agrani Bank Ltd. does its banking work all over the country with a good reputation.

4. Top Management
The top management of the bank is a key strength for the bank and they contributed heavily
towards the growth and development of the bank. The top management officials all have
reputed banking experience, skill and proficiency. As the managers are highly skilled,
educated, experienced and motivated, they are quite expert in solving many unique problems.

5. State owned bank

Agrani Bank Ltd. is a state owned bank as a result, it enjoys some special benefits from Govt.
Basides people feel safe to open deposit in a state owned bank which helps the bank to collect
deposit from people all over the country.Due to its Govt. recognition Agrani Bank has a
competitive edge. Its able to serve a huge number of customers.

18

Weakness
1. Advertising and promotion
Advertising and promotion is one of the major weak points of Argani Bank Ltd. The bank
does not have any effective track for aggressive marketing activities. This lacking pushes the
bank far behind form the other competitor. But now the Board of Directors is making plan for
doing marketing and promotional activities for the bank. They have decided to invest in
beautification of the country as well as to sponsor gaming sector.

2. Working environment
The working environment of Agrani bank Ltd is not good in every branch. In the SENPARA
branch where I did my internship, the working environment is too much bad. Because of
proper monitoring that branch cannot improve itself. Without the computer section there
hasnt any AC for other officers. So that in summer the working condition of bank goes too
bad. So that the Officers cannot do their work properly.

3. Training
Agrani Bank Limited has its own training Institute ABTI (Agrani Bank Training Institute) to
strengthen the capabilities of human resources. However, it is not always possible to give
thorough training. Especially, there is a lack of specific training for specific jobs. As a result,
the employee has to learn things from the job by doing it practically.

4. Promotion
When an employee gets a pro motion to the next level, he/she gets more compensation. ABL
is regular in giving promotion, but the employees get late effect of this promotion. Often
there is a long gap, for example a six-month to one-year gap in getting the effect. As a result,
employees cannot give their best in their workplace.

19

Opportunities
1. Diversification
Agrani Bank Ltd. can peruse a diversification strategy in expanding its current line of
business. The management has already started merchant banking or planning to diversify into
leasing and insurance. By expending business portfolio, Agrani Bank Ltd. Can shrink
business risk.

2. Micro credit business

Agrani Bank Ltd. Can offer micro credit business for individual and small business. They
offer short-term loan to the people of rural areas. As most of the people of this country live in
village so Agrani Bank has a great chance to catch that huge market by micro credit. It will
attract more market towards Agrani Bank Ltd.

3. More branches
Many branches can be opened to reach the banks services to the remote areas. There are
many areas developing because of economic growth where the bank can expand their
business. By which they can attract more diversified customer and provide different types of
service.

4. High demand of Remittance facility

New foreign companies are now investing in the country as well export of our country is
increasing day by day. So there will be a huge demand for remittance facility, which will
create opportunity for Agrani Bank Ltd. So Agrani Bank Ltd. should develop their foreign
exchange service to attract more customers.

20

Threat
1. Level of Competition
Competition is always a major threat for any organization. In recent years, the number of
private bank is increasing. These banks always pose a threat for others by coming up with
new product line, innovative technology, quality services etc. Thus the level of competition
raises and creates threat for Agrani Bank Limited.

2. Compensating Package
Compared to other private banks of Bangladesh, the compensation package of Agrani Bank
Limited is not attractive. Though the employees of Agrani Bank Ltd. get fair financial and
other benefits, the base pay is not sufficient (dependent on national pay scale). This poses a
threat of switching banks as other private banks are giving lucrative offer.

3. Bangladesh banks rules and regulation

Bangladesh Bank sometimes requires Commercial Banks to be abided by such rules and
regulations, which are not suitable for every commercial bank. So Agrani Bank Ltd. might
face some problem if Bangladesh Bank makes any rules, which might hamper strategies of
the bank.

4. New banks
The upcoming private banks can also pose threats to the existing banks. The govt. has
planned to permit new banks. It is expected that in the few years more private banks may
emerge. If that happens the intensity of competition will rise further and banks will have to
develop strategies to compete against new banks.

5. Political Unrest
The political unrest as well as the law and order situation of Bangladesh is always a threat for
banking industry. Especially, the events of recent years, the corruption level of our country,
the poor infrastructure are affecting the national economy. In this case, the whole banking
industry is facing a big threat.

21

Management issues

(I) Organizational structure

Agrani Bank Ltd. is bureaucratic organization. The top-level managers of Agrani Bank
allocate resources to all the departments and sets goals. Middle level managers set up
procedures accordingly. Then the branch managers who are also known as first-line manager
assign task to the employees. In bank, Organizational charts exist for every department, and
everyone understands who is in charge and what his responsibilities are for every situation.
Decisions are made through an organized process, and a strict command and control structure
is present at all times. The Chairman is at the top of the company, and all other departments
cascade underneath that position. Board of Director report to the Chairman, and in turn,
Managing directors report to the Board of Director. Additional Managing Directors are
underneath the Managing directors and Managers of departments are underneath the
Managing directors. These managers typically have numerous supervisors reporting to them.
Finally, the employers of the bank report to the supervisors. Structure is important for any
bureaucratic company.
In Agrani Bank Ltd., power is concentrated in the hands of a few, high-ranking managers.
Decisions about company policy, personnel decisions and financial objectives are made by
the highest-ranking leaders. Procedures are in place that directs most decisions upward to
these leaders where all-important actions take place. Micromanagement is common, and
workers look to their supervisors for all decisions about their work and assignments.

(II) Departmentation
As a bank, Agrani banks main job is to provide financial service. It collects deposit from
people and then invests that money and gives loans to the appropriate parties with intest. We
can divide services in two ways. They are:
1. Deposits scheme
2. Loans and advances
3. Foreign and other services

22

1. Deposits Schemes
(a) Savings account
(b) Current account
(c) STD account
(d) Agrani saving scheme
(e) Monthly deposit
(f) Double scheme
(g) Debit card

2. Loans and advances

Agrani bank provides different kinds of loans. They are:
(a) Overdraft
(b) General loan
Demand loan
Term loan
CPF loan
Loan against FDR
(c) Cash credit
CC (pledge)
CC (hypothecation)
(d) Packing credit
(e) LIM (loan against important merchandise)
(f) PAD (payment against document)
(g) Agriculture credit

3. Foreign department and other services

(a) Export-Import
(b) Foreign Remittance
(c) Agency service
(d) Locker service
(e) Agrani exchange house

23

(III) Leadership of Agrani Bank Ltd.

Leadership is like the Abominable Snowman, whose footprints are everywhere but who is
nowhere to be seen" (Nanus, 1997). Leaders of Agrani Bank Ltd. prefer to follow
participative, autocratic and free-reign leadership styles depends on situation and time. They
believe that sometimes a manager has to act fast; at that time he cant be a democratic leader
because he doesnt have time. And there are some employees who dont need to be told to
work properly given proper challenges/task or objectives to achieve. But most of the time
they like to lead in a democratic way as a result they consults others before making
managerial decisions.
The banks managers motivate employees are through mainly by materialistic rewards. A
PER (Performance Evaluation Report) is made about the employees each year by the
manager. According to that report employees are given special benefits and certificates and
increments. In addition all employees are given bonus during two Eids and whenever the
branch makes huge profit. Senior and important employees are also given flexible arrival and
departure time, transport facility and sometimes-female employees with new-born child are
given the facility to keep their children at day care centers.
The managerial function of controlling ensures that the actual actions are in accordance with
the intended actions and if its not the managers take corrective actions. Here in Agrani
Bank, customer satisfaction is one of the key objectives. If any customer shows any
dissatisfaction by the service provided by any employee, the managers intercept that
customer and makes sure they does everything possible to make the customer happy. The
managers also do the same for any other objective that is important for the Bank. (Ahmed,
2015)

24

Objectives of Agarani Bank Ltd.

1. Winning at least 6.50 percent share of deposits and 5.50 percent share of loans and
advances of Bangladeshi market by June 2018.
2. Gaining competitive advantages by lowering overall cost compared to that of competitors
by 2018.
4. Achieving technological leadership among the peer group within 2017.
5. Contributing towards the economic well being of the country by focusing particularly on
SME and agricultural sectors in the year 2016.
6. Achieving and maintaining the stability of the financial system will continue to be the
primary focus for the Bank over the next 3 years.

25

Recommendation
There are some recommendations towards concern authority for overcoming the
shortcomings of Agrani Bank Ltd. in below:
1. All banking activities should be performed using IT: Using modern technology in
banking sector is must for facing global challenge and fulfilling Customers demand.
2. Bank should neglect the manual based operation: Traditional banking procedures
should be changed and computerized operation is mandatory now.
3. All branches should be well decorated: To attract more new customers and satisfying
existing customers branchs beautification and decorated is needed. It is noted that modern
private commercial banks are more furnished than state owned banks.
4. Bank should introduce new product: As a whole bank management should think to
introduce new product that will attract more customers. For example-Mobile Banking service
can be operated in Agrani Bank Limited.
5. Bank should take motivational effort: Motivational steps should be taken among
employees through reward, award of even thanks letter by top management. It will directly or
indirectly encourage the employees to fulfill the organizational goals.

26

Conclusion
There are a number of Private Commercial Banks, Nationalized Commercial Banks and
Foreign Banks operating their activities in Bangladesh. The Agrani Bank Ltd. is one of them.
Banks always contribute towards the economic development of a country. Compared with
other banks Agrani Bank Ltd. is contributing more by investing most of its funds in fruitful
projects leading to increase in production of the country. It is obvious that right channel of
Banking establish a successful network over the country and increases resources; will be able
to play a considerable role in the portfolio of development in developing country like ours.
Agrani Bank Ltd. is playing its leading role in socio-economic development of the country.
Since inception Agrani Bank Ltd. has been rendering its banking services with the need of the
nation to cope with the demands of people in the country. By doing many other works for
state & society, Agrani Bank Ltd. has emerged as the pioneer of playing key role in the
country.

27

Bibliography
(2013). Retrieved 2016, from www.financeokey.com: http://www.financeokey.com/bankmanagement/internship-report-on-credit-risk-management-of-agrani-bank-limited.html
(2015, june). Retrieved from wikipedia: https://en.wikipedia.org/wiki/Situation_analysis
Agranibank.org. (n.d.). Retrieved from
https://www.agranibank.org/annual_report/Audited_Annual_Financial
%20_Statements_2014.pdf
Ahmed, R. (2015). academia. Retrieved from
https://www.academia.edu/6805556/Managerial_process_of_Agrani_Bank
assignmentpoint. (n.d.). Retrieved from
http://www.assignmentpoint.com/business/finance/report-on-agrani-bank-limited.html
Half Yearly Report 2015. Agrani Bank LTD.
JAHAN, M. A. (2014). bracu. Retrieved from
http://dspace.bracu.ac.bd/bitstream/handle/10361/3389/11164044.pdf?sequence=1
Nanus, B. &. (1997). Leaders: Strategies for Taking Charge.
Saimon, A. (2014). Slideshare. Retrieved from http://www.slideshare.net/asadsaimon/overallbanking-system-on-agrani-bank-ltd

28