Agrani Bank, one of the leading state-owned commercial banks, is playing a pivotal role for boosting the economy of the country. The bank is contributing a significant role to promote industrialization through providing financial assistance to all productive sectors. The bank’s role is crucial to reduce economic disparity across the country. Apart from this, the bank is dedicated to empower new entrepreneurs in business sector as well as to facilitate the agriculture sector.
The economic indicators of Agrani Bank witnessed a positive trend in last year (2019). The growth of the bank is satisfactory in terms of its loan, deposit, asset, recovery and others indicators. The deposit of the bank was Tk 68,000 crore as on October 2019 while it was Tk 42,495 crore during the corresponding period of its previous year- 2018.
The bank disbursed TK 43,458 crore in the form of loans and advances as on October 2019 while it was Tk 36,779 crore as on October 2018. The operating profit of the bank was Tk 580 crore as on October 2019 while it was Tk 536 crore as on October 2018.
The bank is contributing a leading role to facilitate trade and business especially the export, import and remittance. The foreign business portfolio of the bank is praiseworthy. The import, export and remittance receipt through the bank were Tk 25,851 crore, 8,631 crore and Tk 12,405 crore respectively as on October 2019. On the hand, the import, export and remittance receipt through the bank were Tk 18,211 crore, 6,395 crore and Tk 10,825 crore respectively as on October 2018.
Meanwhile, the classified loan amount was Tk 6,236 crore as of October 2019 and the amount was Tk 5,936 crore as on October 2018. The bank is emphasizing to recover default loan under the instruction of the central bank. The bank has already formed special monitoring team to collect NPL amount from the bad borrowers.
The classified loan recovery amount was Tk 1,517.93 crore as on October 2019 while such amount was Tk 66.92 crore during the corresponding period of its previous year 2018. Out of the recovery amount, the cash recovery, re-schedule and written-off amount were Tk 3358.51 crore, 1,153.23 crore and 6.19 crore respectively as on October 2019. Besides, the cash recovery, re-schedule and written-off amount were Tk 235.46 crore, 424.88 crore and 2.58 crore respectively as on October 2018.
Besides, the capital adequacy ratio (CAR) of the bank was admirable during the period. The CAR was 8.01 percent as of October 2019 while it was 6.28 percent during the corresponding period of its previous year 2018.
However, the capital maintained amount was Tk 3,180 crore as on October 2019 while it was Tk 2,196 crore in 2018. The capital required amount was Tk 3,968 crore as on October 2019 and such amount was Tk 3,495 crore as on October 2018. The bank’s cash excess (short) was Tk 788 crore as on October 2019 and the amount was Tk 1,299 crore as on October 2018. Meanwhile, the risk weighted asset of the stood at Tk 39,678 crore as on October 2019 while such amount was Tk 34,947 crore as on October 2018.
Agrani bank plays pivotal role to bolster economy However, the financial performance of the bank was satisfactory during the period. The net income margin was 2.83 percent as on October 2019 while it was 2.92 percent as on October 2018. The net interest spread was 2.94 percent as on October 2019 but such percentage was 3.01 percent during the corresponding period of its previous year 2018.
The cost of fund of the bank was 7.00 percent as of October 2019 and the cost of fund was 7.09 percent as of October 2018. The average interest rate on deposit was 4.05 percent in October 2019 and it was 3.70 percent during the same period in 2018. Beside, the average interest rate on loan was 6.92 percent as on October 2019 while it was 7.46 percent during the same period in 2018. The cost to income ratio was 86.56 percent as on October 2019 while it was 85.93 percent as on October 2018.
Meanwhile, the bank disclosed its income statement matrix which is also maintained a satisfactory trend. The bank’s interest income, interest expenses and operating expenses were Tk 2,902 crore, Tk 2,337 crore and 1,400 crore respectively as on October 2019. Such amount were Tk 2,696 crore, 1,915 crore and 1,361 crore as of October 2018. The number of loss branches of the bank was 66 in 2019 while it was 67 in 2018.
The paid up capital, total equity and total asset of Agrani bank were Tk 2,072 crore, 3,782 crore and Tk 83,745 crore respectively as on October 2019 while such amount were Tk 2,072 crore, Tk 4,181crore and Tk 79,574 crore respectively as of October 2018.
Meanwhile, the total investment of Agrani bank was Tk 18,517 crore as on October 2019 and such amount was Tk 16,546 crore as of October 2018.
