Report on Foreign Trade Operation of AB Bank Limited (Part-1)

OVER VIEW OF THE BANK AND BRANCH

1.1 Introduction of ABBL

AB Bank is the First private bank in Bangladesh. Government permitted private banks to enter in to banking because of sustained poor performance by the banks of nationalized sector. AB Bank limited (ABBL) is sailed as the leading private commercial bank in the baking suture from its journey on April 12, 1982 with opening of its first branch at Karwan Bazar in Dhaka. It was the brainchild of group dynamic entrepreneurs of Bangladesh.

1.2 CORPORATE INFORMATION AT A GLANCE:

(INFORMATION AS PER LAST ANNUAL REPORT 2009)

Name of the bank                                     : AB Bank Of Bangladesh Limited

Status                                                        : Public Limited Company

Nature of Business                                   : Private Commercial Bank

Date of Incorporation                               : 31st December, 1981

Commencement of Business                    : 27th February 1982

Inauguration of the Jubilee Road Branch : 26th July, 1994,

                                                                     Head Office, BCIC Bhaban, 30-31,

                                                                      Dilkusha Commercial Area, Dhaka.

Registration No                                         : C281461 (1992)/95

Chairman                                                   : Mr. M. Wahidul Haque

Managing Director                                    : Kaiser A. Chowdhury

Authorized Capital                                    : TK. 800 Million

Paid up Capital                                          : TK. 519.76 Million

Directors                                                    : 8

Number of branches                                  : 81

Deposit                                                      : TK. 27,361.44 Million

Loan                                                           : TK. 21,384.63 Million

Number of Employees                               : 1525

Telephone                                                   : ( +8802 )9560312

Telefax                                                       : ( +8802 )956-4122-23

SWIFT Code                                              : ABBLBDDH

E-mail                                                         : info@abbank.com.bd

Web Site                                                     : www.abbank.com.bd

1.3 Vision & Mission:

Vision Statement

“To be the trendsetter for innovative banking with excellence & perfection”

Mission Statement

“To be the best performing bank in the country”

Goal of the Bank

To exceed customer expectations through innovative financial products & services and establish a strong presence to recognize shareholders expectations and optimize there rewards through dedicated workforce.

Long term Goal: Keeping ahead of other competitors in productivity and profitability.

Short Term Goal: To attain budgetary targets fixed in each areas of business.

1.4 Change of Name:

AB Bank believes in modernization. The bank took a conscious decision to rejuvenate its past identity – an identity that the bank carried as Arab Bangladesh Bank Limited for twenty five long years. As a result of this decision, the bank chose to rename itself as AB Bank Limited and the Bangladesh Bank put its affirmative stamp on November 14, 2007 vide Bangladesh Bank BPRD circular letter no.-10 dated 22 November 2007. Prior to that shareholders of the bank approved the change of name in the Extra-Ordinary General Meeting held on 4 September 2007.

1.5 Birth of Logo:

The coat of arms of the new logo is inspired by traditional “shital Pati” or sleeping mat”. The  knit and the pattern of interlace in the new logo that echoes the intricate weave of Shital Pati symbolizes bonding. This bonding reflects the new spirit of AB Bank.

1.6 Management & Organizational Structure of ABBL

AB Bank Limited, the first private sector bank under Joint Venture with Dubai Bank Limited, UAE incorporated in Bangladesh incorporated on 31st December 1981, under the Companies Act (Act VII) of 1913 as a limited company having its Head Office in Dhaka. The Bank started functioning from 12th April 1982 with the approval of Bangladesh Bank under the guidelines, rules and regulations given for scheduled commercial banks operating in Bangladesh. It was initially a Joint Venture Commercial Bank between Bangladeshi sponsors and Dubai Bank Limited, Dubai (U.A.E).

1.7 Composition of the Board of Directors

Board of directors consists of Chairman, Vice Chairman, Directors and President & Managing Director and Company Secretary.

ChairmanM. Wahidul Haque
Vice- ChairmanSalim Ahmed
DirectorFeroz Ahmed
DirectorM. A. Awal
DirectorShishir Ranjan Bose FCA
DirectorFaheemul Huq
DirectorSyed Afzal Hasan Uddin
DirectorMishaal Kabir
DirectorMd Salah Uddin
DirectorMd Mesbahul Hoque
DirectorMd. Anwar Jamil Siddiqui
DirectorDr. M. Imtiaz Hossain
DirectorRuna Zakia Shahrood Khan
President & Managing DirectorKaiser A. Chowdhury

1.8 Capital Structure of ABBL

The authorized share capital of AB Bank Ltd. Was Tk. 282.34 million, divided into 2.82 million ordinary shares of Tk. 100 each. The paid-up capital of the bank was Tk.85 million, out of which, Tk.80 million was provided by the sponsor directors. The government of the Peoples Republic of Bangladesh subscribed Tk. 5 million in the share capital of the Bank and has since nominated one director in the board as per Article 95 of the Memorandum and Article of Association in 1983. During 1984, issuing Public shares of Tk. 15 million raised the paid-up capital. The authorized capital has been raised to Tk.200 crore and paid up capital 74.32 crore as on 31.12.2007.

In the past paid up capital AB Bank, Dubai Bank Limited had the major share comprising 60% of total share holdings. Dubai Bank Ltd. Was the joint sponsor with the local four entrepreneurs. In 1986, Dubai Bank Ltd. Merged with the Union Bank of Middle East (UBME) and subsequently Union Bank of Middle East (UBME) inherited the shares. They continued as shareholders till early part of 1987 when they decided to off-load their investment in Bangladesh. In terms of Article 23 (a) and 23 (b) of the Articles of association of the company and with necessary approvals of the relevant authorities including the Bangladesh Bank, the shares held by them in the company have been transferred to Group “A” shareholders.

1.9 Milestones in the Development of the Organization

AB Bank reached 28 years of its journey, which started with a single Branch operation at Karwan Bazar, Dhaka way back in 1982. AB Bank being the pioneer in private sector banking in Bangladesh will be the first to achieve this milestone. Over the years, AB Bank has contributed in many ways towards development of the private sector banking in the country. AB thrived on customer service and relationship banking, which brought new dimensions to this particular service sector and many more new entrants to banking sector, followed AB.

Commencement of Business:February27 1982
First meeting of the Board of Directors:February 5, 1982
Opening of the first Branch (Karwan Bazar Branch):April 12, 1982
Listing with Dhaka stock Exchange (DSE):December 28,1983
Publication of prospectus for IPO:May 5.1984
Opening of principal BranchJanuary 16,1986
Opening of ABIFL-Subsidiary of Hong KongNovember 1995
Listing with the Chittagong Stock ExchangeJanuary, 1996
First Foreign Branch at Mumbai, IndiaApril 1996
Launching of ATMApril 12,2002
Operating of Merchant Banking Wing (MBW)November 2 2002
Incorporate of AB Bank FoundationNovember 3 2003
Launching of VISA CardDecember 23,2004
Operating of Islamic Banking BranchDecember 23,2004
Online Share Transaction in CDSMay 7 ,2006
Obtained permission as a Security Custodian from Securities and Exchange CommissionJanuary 22 ,2007           
Arab Bangladesh Bank Ltd. Changed its name to AB Bank Limited (ABBL)November 14,  2007
Raise the Authorized Capital Tk.600, 00, 00,000/- divided into 6, 00, 00,000 ordinary shares of Tk.100/- eachJanuary 29, 2009

Table 2.1: Corporate event of A B Bank Ltd.

1.10 Customer services

Like some bank AB Bank Limited (LTD) has also provide different types of services with his potential customers. The services of AB Bank Limited are:

Corporate Service

  • Floating of public Issue
  • Loan syndication

Personal banking Services

  • Deposit account

      Current Account

      Saving Account

      Short Term Deposit

      Fixed Deposit

  • Foreign Exchange Transaction
  • Customer Credit Scheme
  • E-cash 24 Hour Banking
  • Branch Banking
  • ATM and Credit Card
  • Personal and Car Loan
  • Safe Deposit Locker
  • Utility Bill Payment
  • Opening Student File

International Trade and Foreign Exchange

Lease financing

Capital market Service 

1.11 ORGANOGRAM:

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1.12 Introducing the branch

AB Bank Ltd. Karwan Bazar Branch is one of the largest branches of ABBL is located in BSEC Bhaban,Karwan Bazar C/A. It started its function in the year 1986. Presently there are 56 employees in this branch as of 31st March,2011 which includes One VP, two SAVP, Six AVPs, 4 Senior Principal Officers, 5 Principal Officers, 5 Senior Officers, 18 Officers, three Management Trainee Officer, One  assistant and others are messengers, tellers, typist and  security guards.

1.13 Flow Chart of Internship Organogram in AB Bank Ltd of Karwan Bazar Branch

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1.14  Flow Chart of AB Bank Ltd. Karwan Bazar Branch:

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1.15 PERFORMANCE OF AB BANK

1.15.1 Analysis of Capital Structure:

YearAuthorized Capital(TK in Million)Paid Up Capital(TK in Million)

2009

6000

3373.96

2008

3000

2677.75

2007

2000

743.26

2006

1500

571.14

2005

800

878.85

1.15.2 Reserve fund:

yearAmount(TK in Million)

2009

3980.3

2008

2702.95

2007

2072.53

2006

1456.47

2005

826.33

1.15.3 Deposit mix

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1.15.4 Deposit position of a bank

YEARAmount of deposit(TK in Million)

2009

83087.13

2008

68560.47

2007

53375.35

2006

35032.02

2005

27361.44

1.15.5 Investment (General)

YEARAmount(TK in Million)

2009

16369.3

2008

11395.94

2007

8884.6

2006

6301.28

2005

4060.95

1.15.6 Investment in share & securities

YEARAmount(TK in Million)

2009

16369.3

2008

11395.94

2007

8884.6

2006

6301.28

2005

4060.95