General Banking Function of a Public Bank A study on Agrani Bank Limited (ABL)

Acknowledgement

The Almighty ALLAH is so great that He gave me the ability to finish the internship report
within the deadline.
In the preparation of this report, I would like to acknowledge the encouragement and
assistance given by number of people. I am most grateful to my internship supervisor Ms.
Samina Haque for providing a detailed feedback and support all the time on this report.
My special thanks go to Mr. Wadud Ali (AGM), Mr. KabirRyhan, branch manager of Agrani
Bank Limited, Ramna corporate branch, for their guideline, assistance, intimacy and for their
valuable time as well. Their continuous assistance makes me to have a clear idea about how
general banking activities of Agrani Bank are going on. Moreover, the contribution Mr.
MujiburRahaman (Officer), Mr.Bayezid (Senior Officer) and Ms. Saleha Begum (TT
Incharge) are also remarkable. Without their contribution it would not have been possible for
me to finish the Internship
Finally, I am extremely grateful to Mr. Haider Ahmed Khan (FCA) & senior vice president
of DCCI (Dhaka Chamber of Commerce and Industry) who helped me to get this scope to do
internship in Agrani Bank Ltd.

Executive Summary

Agrani Bank Limited (ABL) is established in 1972. It is a state owned bank. It is formed by
the composition of ex-Habib Bank ltd and ex-Commerce Bank ltd. Agrani Bank Limited is a
Bank with an Authorized Capital and Paid-up Capital of Tk.800.00 million and Tk.248.00
million respectively. The total equity of the bank stands at 725.00 million as on December,
2010. The total profit of last year is about Tk.680.00 million.There are about 867 branches in
which 10 branches are corporate. There are about 341 town branches and 526 rural branches.
The board of directors is consisted of 11 members. The Chairmen and Directors are
nominated by government.
There are six section of ABL (Ramna br.) in GB- Cash, computer, account opening, clearing,
Accounts and local remittance. Cash section receive cash and pay payment in cash, computer
section posting the vouchers, account penning section open new accounts, clearing section
deal with clearing function, account section prepare different statement etc.
The strengths of ABL are, State owned bank, Wide image, Unlimited trustiness about ABL
to rural people, High commitments for customers, Qualified and experiences personnel etc.
The weaknesses of ABL are: Absence of service providing mentality, Absence of IT
applications.Some what manual based, Lack of motivation of workers, depends on Head
office. The opportunities of ABL are: High demand of credit, High demand of small
enterprise financing, High demand of remittance facility, High demand of investment by
depositing. The threats of ABL are: Interfere of CBA and Officers’ Somiti, Some
commercial and foreign banks, Some rules and regulations of Bangladesh Bank, Present of
similar types of retail banking product etc.
The shortcoming of ABL is: Bureaucratic complexity in Management of ABL is very high in
relation to general banking function. Management of GB practice excess formalities. In
absence is service providing mentality. Interference of CBA and Officer Somiti in operation
of GB Lobbing from upper level for doing unfair activities, Lacking of motivation in GB
personnel due to irregular promotion. Absence of using IT application. Manual based
operation.
There are some recommendations toward concern authority for overcoming the shortcomings
of ABL in below: All banking activities should be performed using IT, Bank should
neglect the manual based operation, All branches should be well decorated Staff and officers
should speak polite and low voice, Bank should introduce new product, Bank should
consider experience , written test and viva examination in cases of promotion, Bank should
provide appropriate training, take motivational effort, To limit interferences of CBA and
Officers’ Somiti.

Chapter-01

1.1: OBJECTIVES OF THE STUDY

As a partial fulfillment of a Masterof Business Administration, internship is a requirement
at the end of the completion of all the credit courses. The main purpose is to be familiar with
the real world situation and practical experience in a business firm. Commercial bank,
especially Private Bank is one of the important business sectors in Bangladesh. Agrani Bank
Limited is a scheduled commercial bank in the govt. sector, which is focused on the
established and emerging markets of Bangladesh. The purpose of this study is to earn a real
life practical experience on Banking System.
The study mainly conducted with the following objectives:
 To find out the strengths, weakness, opportunities and threats of ABL in relation to
general banking.
 To find out the problems pf ABL in relation to general banking.
 To find out the dissimilarities between the public bank as ABL and private bank.
 To provide the recommendation for overcoming the shortcoming of ABL.
1.2: METHODOLOGY
The study methodology included observation of their work procedure, analysis of their
information input forms and their output documents, face-to-face communication with the
clients, interviews of relevant ABL officials.
As per study objectives mentioned, the information used in this study has been received
from the following sources:
Primary Sources:
 Officials Records of Agrani Bank Ltd (ABL)
 Face-to-Face interview with the respective personnel
Secondary Sources:
 Research, brochures, and various publications of Agrani Bank Ltd.
 Annual report, Official data book, Internet.
1.3: LIMITATIONS
The objective of this study is to earn real life practical experience in Banking System. It
requires long time to acquire to the real experience. Time limitation is the main constrain in
this respect. The lack of available of data is another limitation. Maximum of banking activity
are practical. . Just reading the manual is not enough. To earn such practical experience, it
requires working with those events.
The main limitations are as:
 Time constrain
 Banking people are very busy. Sometimes it seems hard to get their attention
 Lack of published relevant documents
 Some information is confidential-not open to public.

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