SME Product/Programs of ABL

SME Product/Programs of ABL
Nari Agrani

Nari Agrani is a special credit program for the women. It is a recent and popular credit program of Agrani Bank Limited. It is introduced in 2010 under SME financing with a view to bring the women in the mainstream development activities. Under this program, an eligible woman can avail the SME credit with only 10% interest per annum and 75:25 debt equity participations. No collateral is required up to Tk.1.00 million (10.00 lacks) and one can get the maximum loan amount of Tk.10.00 millions (1.00 crore) with necessary collaterals. The activities of the program are extended in all the branches of Agrani Bank Limited.
EGPRP

Employment Generation Project for the Rural Poor (EGPRP) is a foreign aided (IFAD aided) credit program. It is under taken in 1995 under IAFAD Loan No. 378 BD. It is introduced mainly for nationwide small enterprises development, poverty reduction and employment generation. Under the program, countrywide 168 designated branches of Agrani Bank Limited are involved in disbursing the credits to the target people. As a retailer, an eligible NGO can avail a bulk loan for on-lending to the people. The loan size at individual level is Tk.20,000 to Tk.5,00,000 and no collateral is required up to Tk.75,000. The rate of interest of this credit is reasonably minimum

SMCP

Special Micro Credit Program (SMCP) has under taken to finance in small farm and other income generating activities. A wide range of rural activities are involved in this program. The main purposes of the program are income generation, employment creation and poverty alleviation. An individual or a group can avail the loan under the credit line. There is a provision to involve NGOs for group development and loan recovery. The maximum loan amount is Tk.50,000 to a individual level. The interest rate is minimum and it is only 10%. It is a country wide collateral free credit program.

DABIK

Daridra Bimochon Karmasuchi (DABIK) is a credit program mainly for the hard core people. A person who has up to 0.50 acres of land including homestead can avail the loan facility. A wide range of rural activities are involved in this program. The main objectives are micro enterprises development, income generation, employment creation and poverty alleviation. An individual or a five member group can avail the loan. It is a small and collateral free loan. The maximum loan limit is Tk.10,000 to a individual level. The rate of interest is only 10%. The activities of this program are extended in all the branches of Agrani Bank Limited.

SEDP

Small Enterprises Development Project (SEDP) is a NORAD aided project. The activities of this program are extended in greater Mymensigh and greater Faridpur districts. The main objectives of this project are the development of small enterprises, income generation, employment creation and economic development. A wide range of small enterprises are being financed under the project such as rice mill, oil mill, food processing, flour mill, nursery, hatchery, fishery, handicrafts etc. The maximum loan ceiling is Tk.5,00,000 and up to Tk.1,00,000, no collateral is required. The rate of interest is reasonably minimum. Of late, this project is converted into a subsidiary limited company of Agrani Bank Limited.

LDP

Loan for the Disabled Persons (LDP) has introduced for the disabled persons with a view to bring them into the mainstream development activities of the country. A man who is physically disabled but mentally sound can avail the loan under the program. A disabled person individually or jointly with his competent family member can avail the loan. The maximum loan ceiling is Tk.25,000 for the first time and Tk.50,000 for the second time. The rate of interest is only 10% per annum. It is a collateral free loan program and its activities are extended in all the branches of the bank.

SCPW

Small Credit Program for the Women (SCPW) is a small credit program for the women. It is introduced to uplift the socio economic condition of the women. A large number of income generating activities such as tailoring, printing and dying, ready made garments, laundry, poultry, mini dairy, goat rearing ,beef fattening, nursery etc. are involved in the program activities. Maximum loan limit is Tk.1,00,000. Up to the loan amount of Tk.50,000 , no collateral is required. The rate of interest is only 11% per annum under the credit program. All the branches of Agrani Bank Limited can disburse the credit to the eligible women under this program.

SCLP

Special Commercial Loan Program (SCLP) is undertaken by the bank to extend and develop the small business of the country. This is a short term loan and the loan is delivered as cash credit. The maximum loan ceiling is Tk.2,75,000 and necessary collateral is required for this credit. The rate of interest is reasonably minimum.

MSFSCIP

Marginal and Small Farm System Crop Intensification Project (MSFSCIP) is another IFAD aided project. The activities of the project are extended in 9 upazillas of Kurigram district. The primary objective of the project is to establish a sustainable linkage between the SHGs (Self help groups) and the bank so that the rural people become bankable. It is a collateral free loan and it is under refinance scheme of Bangladesh Bank. The rate of interest is reasonably minimum.
SMESTCP

SME Small Transport Credit Program (SMESTCP) is designed for income generation, employment creation and the development of the rural transport system. An eligible person or a 2-3 member group can avail the loan facilities to purchase an eco-friendly small transport under this program. The maximum loan ceiling is Tk.3,00,000 and rate of interest is only 10%. It is a collateral free loan up to a certain limit.

SBETPCS

Solar Energy, Bio-gas and Effluent Treatment Plant Credit Scheme (SBETPCS) is a green credit scheme of Agrani Bank Limited. Under the scheme the entrepreneurs can enjoy the credit facilities to establish solar panel, bio-gas plant and effluent treatment plant. The credits are disbursed directly or through NGO linkage program. The rate of interest of this credit is reasonably minimum. The activities of the scheme are extended in all over the country.

 

Small and Medium Enterprises (SME) Financing

Small and Medium Enterprises (SME) Financing

SME is a thrust sector. This sector is labor intensive with short gestation period. It is treated as income generating machine and driving force of industrialization. It can play a pivotal role in achieving Millennium Development Goals (MDGs), especially eradication of extreme poverty and hunger, gender equality and women empowerment. The countries like China, Japan, Hong Kong, Taiwan, Thailand and very recently India have developed their national economy through the development of SMEs. So, the Government of Bangladesh and Bangladesh Bank have taken various initiatives for the development of SMEs. As a development partner, Agrani Bank Limited has also been operating various credit activities for the development of SMEs.

SME Financing in Agrani Bank Limited

Actually, the structured SME financing has come into being in 2005 as per Prudential Guide Lines introduced by Bangladesh Bank. From then, the bank has been taking a number of initiatives to develop SMEs such as, creation of separate SME Credit Division, intensive credit operation as per guidelines of Bangladesh Bank, credit operation through all branches of the bank, sufficient budget allocation for disbursement, area approach/cluster based loan disbursement, introduction of separate credit program for the women, establishment of SME Desks, Women Entrepreneurs Dedicated Desks and SME monitoring cells, appointment of SME focal officers, colorful participation in SME fairs and other promotional activities. As a result, the bank has reached in an outstanding SME position within a short time.

Priority to the Small Entrepreneurs

Among the SMEs, the small enterprises have more prospects for generating income, reducing unemployment and achieving economic growth. Keeping this in view, the bank has given priority to deliver credits to the small entrepreneurs. As a result, the bank are abled to deliver almost 70% of total SME credit portfolio to the small entrepreneurs.

Special attention to the Women Entrepreneurs

The women are the most disadvantaged group in access to finance. But they are capable enough to operate any financial activities. Keeping this in mind, Agrani Bank Limited has introduced a special women credit program under the caption Nari Agrani. Through Nari Agrani, the bank has ensured credits to the eligible and interested women. Under the program, the women can avail credit with only 10% interest per annum. Giving importance to the women, the bank has established Women Entrepreneurs Dedicated Desk in all potential branches. Moreover, the bank has allocated sufficient credit disbursement budget for the women entrepreneurs (20% of the total budget).Thus the bank is bringing the women into the development activities of the country.

Environment friendly banking

The environment friendly banking in others words green banking is a new concept in our country. To speak, it is an innovation of Bangladesh Bank. But it is an older and very much popular issue in the western world. However, from Corporate Social Responsibilities (CSR), Agrani Bank Limited has introduced environment friendly in house and out house green banking. The bank has already introduced a credit line for green financing to the sectors like solar energy, bio-gas plant and effluent treatment plant. Under in house green banking, the bank has introduced on-line banking services. The bank has ensured fast banking services to the people by electronic fund transfer, automated clearing house, e-cash, ATM booth, e-mail and other digital systems. These digital efforts of the bank are undoubtedly helping in building up the “Digital Bangladesh”.

Area approach/cluster based SME financing

For rapid growth, lower risk and intensive monitoring facilities, Agrani Bank Limited has taken into consideration to ensure the area approach and cluster based SME financing. With a view to do so, the bank has instructed its 29 potential branches to disburse cluster based SME loan after cluster identification. The handicrafts, light engineering, hardware, husking mills, chatal, flower cultivation etc. are the main clusters identified by the bank. For these clusters development, the bank has delivered Tk.360 million and a disbursement target of Tk.930 million is fixed for the year 2012.

NGO Linkage Program of ABL

Agrani Bank Limited is a pioneer bank in expanding credits through the competent NGOs. The bank engaged different NGOs for expanding the SME credit services. The bank has already delivered a total loan of Tk. 800 millions to the BRAC and 110 millions to MIDAS as whole sale credits with soft terms and conditions. As retailers, they have re-lent the same to the SME people.
Foreign Aided Credit Programs

Agrani Bank Limited has been utilizing its own fund and the foreign fund for the credit operation. The credit programs namely EGPRP and MSFSCIP (Kurigram) are being successfully operated by the bank under the financial assistance of IFAD. Under the program EGPRP, the bank extending credits to the people through its 167 branches. On the other hand, the credit program like SEDP is running smoothly with the financial assistance of NORAD. To ensure better credit services, the SEDP is converted into a subsidiary company of Agrani Bank Limited named The Agrani SME Financing Company Limited recently.

 

Business Banking » Export Finance

Business Banking » Export Finance

To boost up country’s Export, Agrani Bank Limited has been providing different kinds of assistance and incentive to the exporters. Some of which are:

1. Pre-Shipment and Post-Shipment Finance.

2. Discount/Concession rate of interest for exports Finance.

3. Back-to-Back L/C facility under bonded Warehouse system.

4. Sight L/C under Export Development Fund (EDF).

5. Interest bearing and non-interest bearing Exporter’s retention Quota A/C.

6. Export Incentive Program.

Financing industries of 100% foreign investment or of Joint Venture at Export Processing Zones

7. Obtaining EEF (Equity & Entrepreneurship Fund) from Government through Bangladesh Bank for building up Entrepreneurs’ Equity.

8. Providing services to the exporters by the Bank’s own logistical supports like SWIFT, Reuters Service, Internet, Fax etc.

9. Consultancy and Advisory Services by an expert group of officials.

Special credit programs for IT related export business:
Checklist of requirements:

a) A Firm or Company having valid ERC, necessary infra-structural and technical facilities and sufficient skilled manpower related to computer.
b) Member of BASIS or BCS.
c) Having Computer Literacy or related professional background.
d) Preference to the firm/company having prior experience.
e) Satisfactory performance Certificate/Acceptance Letter from /Counterpart abroad.
f) Valid export Orders are in hand.

Export

The Export business of Agrani Bank Limited during the year 2008 amounted to TK.49538.30 million and the rate of growth was 1.3% over that of the previous year.
Year     Taka in million
2004     41970.60
2005     41709.80
2006     51713.30
2007     48918.70
2008     49538.30

Checklist of essential papers/documents for Export

1. Trade License from proper authority
2. Export Registration Certificate (ERC)
3. Value Added Tax (VAT) Registration Certificate
4. Income Tax Certificate with Taxpayer’s Identification Number (TIN)
5. Prescribed EXP Form to be duly filled out

Pre-shipment Credit
We provide pre – shipment finance in the form of Export Packing Credit (PC) and Back to Back Letter of Credit to assist for export from Bangladesh.

Packing Credit
We provide pre-shipment finance in the form of Export Packing Credit to manage Exporters cash flows for the purpose of procuring raw materials, manufacturing, processing, transporting, warehousing, packing, shipping of goods, etc.

Business Banking » Import Finance

Business Banking » Import Finance

With assistance from about 400 overseas correspondents, Agrani Bank Limited, through 40 Authorized Dealer Branches, has been financing full range import business of a lot of Importers who are Bank’s clients.

Facilities Offered:

Opening of L/C at competitive/reasonable margin and at concessional commissions & rates of interests with interest rebate facilities on import finance for the prime customers The import business of Agrani Bank Limited during the year 2008 amounted to TK.109517million.

Loan Against Imported Merchandise (LIM)

This type of finance is offered to the importer to finance their needs for meeting the cost including freight, insurance, and customs and excise duty payable on the imported merchandise. The lending bank mostly pledges the imported goods. The merchandise is released for the use of the importer (borrower) upon repayment of the bank�s finance and charges either fully or partially, on production of the Delivery Order issued by the banker in favor of the borrower.

Loan Against Trust Receipt (LTR)
This is a loan against a Trust Receipt provided to the client when the documents covering an import shipment are given without payment. Under this system, the client will hold the goods of their sale proceeds in trust for the bank, until the loan allowed against the Trust Receipt is fully paid. We provide LTR to manage immediate liquidity of importers.

Loan Against Export Development Fund (EDF)

We provided EDF Loan to the eligible exporters for enhancing export.

Payment Against Documents (PAD)

This is a Short Time Loan provided to the importer for delivery the shipping documents in order to release imported goods.

 

Loan Syndication

Introduction:
Agrani Bank Limited as a state owned commercial bank has to play
important role in translating the Governments development plans in terms of growth in industrial,commercial and agricultural sector in Bangladesh. Accordingly the bank has formulated its credit policy under the guidelines of
Bangladesh Bank the Central Bank of Bangladesh.

Why Syndication Financing?
Risks by nature are extremely volatile and unpredictable. This makes it urgent for the Bank to involve its risk management strategy in a way that best protects our interests against any insidious transaction. For reduction the lending risk Syndication Finance is most popular financing system.

What is Syndication Financing?

Syndication means joint financing by more than one bank to the same borrower against common terms and condition governed by common documents.

Major Objectives of Syndication Financing:

° To spread and share the credit risk among all the participating banks or
financial institutions.

°In case of large loan to comply central bank’s instructions.

° Analyzing the project viability from various angles by the syndicate members.

° To promote entrepreneur to establish large industry.
Syndication Financing History of Agrani Bank Limited:

After 1980′s Agrani Bank Limited has started consortium financing and funding a few successful projects chronologically it terms in to syndica
tion financing and our Bank has started syndication financing from last 10 years. The Bank continues its participation in syndicated lending arrangements. The Bank continues to aggressively invest in well structured syndicated transactions. As lead Arranger and participating member bank
Agrani Bank Limited has financed in the following sectors:

∗ Textile
∗ Garments
∗ Steel & Re-rolling
∗ Hospital
∗ Universities
∗ Chemical
∗ Power, etc

List of Syndication financed by Agrani Bank Limited.
As Lead Arranger our Bank has financed 13 (Thirteen) nos. of large projects & as participating member bank has financed 55 (fifty Four) nos.of
successful projects.
A. As Lead Arranger:
SL No Name of the Borrower
01. Hotel Saint Martin Ltd.
02. The Dacca Dyeing & Manufacturing Co. Ltd.
03. East West Property Developments (Ptv.) Ltd.
04. Shahabuddin Medical College & Hospital Ltd.
05. Heart Beat Clinic Ltd.
06. BSRM Steels Ltd.
07. Green Life Hospital Ltd.
08. Wisteria Textile Ltd.
09. Energis Power Corporation Ltd..
10. Bashundhara Food & Beverage Industries Ltd.
11. Dutch Bangla Power & Associates Ltd.
12. IEL Consortium & Associates Ltd.
13. Power Pac Motiara Keranigong Power Plant Ltd..

B. As Participating Member Bank:
SL No Name of the Borrower
01. Tairunnessa Memorial Medical Center Ltd.
02. Shamim Composite Textile Mills Ltd.
03. Aegis Cotton Mills Ltd.
04. Anlima Textile Ltd.
05. K Y C R Coil Ind. Ltd.
06. Beximco Pharmaceuticals Ltd.
07. Jamuna Spinning Mills Ltd.
08. Silver line Composite Mills Ltd.
09. Diabetic Association of Bangladesh Health Care Development Program (DABHCDP)
10. Karim Spinning Mills Ltd.
11. Becon Pharmaceuticals Ltd.
12. Padma Weaving Ltd.
13. Lina Paper Mills Ltd.
14. Imperial Hospital Ltd.
15. Rowshan Are Cotton Mills Ltd..
16. Alltex Spinning Ltd..
17. Diamond Spinning Ltd..
18. Karoni Knit Composite Ltd..
19. T.M International Bangladesh Ltd.
20. Grameen Phone Ltd.
21. Shun Shing Power
22. Pacific Bangladesh Telecom Ltd.
23. F C I Beverage Ltd. (Qibla Cola)
24. ARKAY Cotton Spinning Mills Ltd.
25. Dhaka Telephone Co Ltd.
26. Aegis Composite Textile Mills Ltd.
27. Ranks Telecom Limited
28. Samuda Chemical Complex Ltd.
29. Warid Telecom International Ltd.
30. RFL Plastic Limited
31. Front Line Spinning Mills Ltd.
32. Bangladesh Telecom Ltd.
33. Ibrahim Iqbal Memorial Hospital Ltd.
34. Unique Power Plant Ltd.
35. Faisal Spinning Mills Ltd.
36. BRAC
37. North South University
38. Cashlink Bangladesh Ltd.
39. Summit Purbanchol Power
Company Limited and Summit
Uttaranchol Power Company Ltd.
40. Shampa Flowers Mills Ltd.
41. Banga Building Materials Ltd.
42. ACI Logistics Ltd.
43. Keya Yarn Mills Ltd.
44. Beuro Bangladesh
45. United Cotton Mills Ltd.
46. Bangle lion Communications Ltd.
47. BRAC Secutisation Ltd.
48. Nasir Glassware & Tube Ind. Ltd.
49. Super Petrochemical (Pvt.) Ltd.
50. Fakir Chemicals Ltd.
51. Glory Spinning Ltd.
52. RR Spinning Mills Ltd.
53. Prime melange Yarn mills Ltd.
54. Desh Energy Ltd.
55. Meghna Seeds Crushing Mills Ltd.

Debit Card

Debit Card

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Agrani Bank Limited has launched Debit card under a shared system. The shared ATM system is maintained by Cash Link Bangladesh Limited (CBL). The following banks are in the said shared ATM system.

Agrani Bank Limited
AB Bank Ltd.
Bank Asia Ltd.
Islami Bank Bangladesh Ltd.
Social Investment Bank Ltd.

Facilities of ATM/DEBIT Card:

Cash transactions.
Balance inquiry.

Annual fee for ATM/DEBIT card

For Customer:

Issue fee is TK.250.00
Renewal fee is TK.250.00
Replacement fee is TK.200.00

For Bank Personnel:

Issue fee is TK.125.00
Renewal fee is TK.125.00
Replacement fee is TK.200.00

Cashlink Bangladesh Ltd(CBL) Shared Network ATM Location List

<http://cashlinkbd.com/atmLocation.php?atm=ViewAll>

Monthly Income Prokolpo

Personal Banking » Deposits » Monthly Income Prokolpo

To make the mass people more inclined toward savings, a new scheme titled “Monthly Income Prokolpo” has been introduced with the following features:

Term – 3 Years
Minimum One Time Deposit – Tk. 5,00,000.00 and above (in lacs)
Monthly Benefit – Tk. 1,000.00 per lac
Interest Rate – 13.70% (on completion of 1st year – 10%, on completion of 2nd year 11% and on completion of 3rd year – 13.70%)

Monthly Deposit Scheme

Personal Banking » Deposits » Monthly Deposit Scheme

To make the mass people more inclined toward savings, a new scheme titled “Monthly Deposit Scheme” has been introduced with the following features:

3 Years Term (Interest Rate 10%)
5 Years Term (Interest Rate 12%)
Minimum Deposit – Tk. 5000.00
Maximum Deposit – Tk. 30,000.00