Special Supplement

Performance of Agrani Bank is improving in all indicators

Published : 21 Oct 2020 06:51 PM | Updated : 21 Oct 2020 07:58 PM

Main performance indicators of Agrani Bank Ltd, including deposits, loans and advances, AD ratio, maturity assets, operating profit, imports and exports, and classified loans, are gradually improving.

This picture of improvement has been found by reviewing the financial statements of the bank for the last five years.

According to the reports, Agrani Bank has turned around with the assorted efforts and leadership of its prudent Chairman, efficient Directors, Managing Director and CEO along with a team of skilled officials.  If it continues, it will become one of the best banks of the country in future, officials said.

According to the reports, the total deposit of Agrani Bank in 2016 was Tk 49,405 crore.  In 2017, it increased to Tk 53,035 crore, in 2018 to Tk 62,193 crore, in 2019 to Tk 69,224 crore and at the end of August 2020, the bank's deposit stood at Tk 75,321 core.

The bank's loans and advance have also been steadily rising.  In 2016 it was Tk 26,587 crore, in 2017 it increased to Tk 31,912 crore, in 2018 it stood at Tk 39,575 crore, in 2019 it stood at Tk 46,583 crore and till August 2020 it stood at Tk 47,878 core.

According to the report, the advance and deposit ratio (ADR) is also increasing every year.  In 2016 it stood at 53.81 percent, in 2017 at 60.17 percent, in 2018 at 63.63 percent, in 2019 at 67.29 percent, at the end of August 2020 at 63.57 percent.  The bank's total assets in 2016 were Tk 62,357 core in 2017 were Tk 67,392 crore, in 2018 were Tk 78,915 crore, in 2019 were Tk 85,393 crore and till August 2020 it stood at Tk 91,026 core.

Operating profit of this bank was Tk 555 core in 2016, Tk 813 crore in 2017, Tk 832 crore in 2018, Tk 900 crore in 2019 and Tk 677 crore till August 2020.  Imports through banks amounted to Tk 10,153 crore in 2016, Tk 13,267 crore in 2017, Tk 23,551 crore in 2018, Tk 38,841 crore in 2019 and Tk 15,317 crore till August 2020.  In other words, this index is increasing every year.

This state-owned commercial bank has played a vital role in the exports business of the country. Exports from this bank in 2016 was  Tk 7,396 crore, in 2017 was Tk 7,059 crore, in 2018 was Tk 8,280 crore, in 2019 was Tk 10,873 crore, and till August 2020 it stood at Tk 6 thousand 8 crore.

The bank has created interest among the expatriates to send their hard earned foreign currency through banking channels by giving cash incentive facilities, which refrain them from sending the money through Hundi.  As a result, collection of remittance of this bank has also increased. Collection of remittance of this bank in 2016 was Tk 12,022 crore, in 2017 was Tk 10,605 crore, in 2018 Tk 12,680 crore, in 2019 was Tk 14,863 crore, and till August 2020 the amount was Tk 13,555 crore.

After reviewing the report, it has been seen that the amount of classified loan of the bank in 2016 was Tk 6,804.49 crore, in 2017 it was Tk 5,569.55 crore, in 2018 the amount was Tk 6,993.38 crore, in 2019 was Tk 6,642.82 crore and till August 2020 the amount was Tk 6,350 crore.  In other words, this indicator is gradually getting better every year.

Recovery from classified loans is also increasing remarkably. Classified loan recovery in 2016 was Tk 954 crore, in 2017 was 1,875 crore, in 2018 was Tk 1,059 crore, in 2019 was Tk 2,662 crore and till August 2020 the amount was Tk 309.12 core despite coronavirus pandemic. 

Percentage of classified loans is declining as well.  In 2016 it was 25.59 percent, in 2017 it decreased to 17.45 percent, in 2018 it was 17.67 percent, in 2019 it was 14.26 percent, and till August 2020 it was 13.13 percent.

Meanwhile, a report on the different financial indicators of state-owned banks of 2019 found that Agrani Bank is ahead of among the state-owned banks.  The report showed that deposit growth of Agrani Bank was 11.3 per cent, Rupali Bank  6.4 per cent , Sonali Bank 5.6 per cent  and Janata Bank 2.3 per cent.  Net interest income of   Agrani Bank was Tk 633 crore, Janata Bank Tk 454 crore, Rupali Bank Tk 2 crore and Sonali Bank was negative Tk 412 crore.

Agrani Bank is also ahead in operating profit growth among the state-owned banks.  Agrani Bank operating profit growth in 2019 was 8.2 percent.  Besides, the other three banks are in a negative position.  Janata is negative at 13.9 per cent, Sonali at 15.2 per cent and Rupali at 37.7per cent.

Agrani Bank is also ahead of other state-owned banks in the import business.  Import growth of this bank in 2019 was 64.9 percent, followed by Rupali Bank at 35.1 per cent, Sonali Bank at 0.4 per cent and Janata Bank at 4.3 per cent. 

Agrani Bank is also ahead in exports business among the state-owned banks.  Agrani Bank's export growth was 31.3 per cent, Rupali Bank 3.4 per cent, Janata Bank negative 18 per cent and Sonali  Bank negative 21 per cent.

Agrani Bank is also at the top in remittance collection.  When asked about this, Agrani Bank Chairman Dr. Zaid Bakht told this correspondent that there is a difference between the Agrani Bank of five years ago and it is now.  Agrani Bank currently tops most of the indicators compared to other state-owned banks.  "We placed great emphasis on low-cost deposit collection, remittance collection and import-export," he said. 

Dr. Zaid Bakht said, "We have also been benefited from it.  We are in a better position than other government banks in this regard.  In terms of remittance, we are in the first position among the state-owned banks and in second place among all the banks in Bangladesh.  In terms of import and export, we have gained the confidence of the traders."

"We are providing maximum service to the customers," he further said. 

Among the state-owned banks, we have launched  online banking services in all of our  958 branches.  Old customers are coming back to Agrani Bank as customers regain their confidence, he further said.

Agrani Bank Chairman said, "One of our strategies is assessing an employee according to his/her performance. No lobbying can do any help for the promotion of the officers. So the officials of the bank work very sincerely. Among the state-owned banks, we are giving the highest incentive bonus to our employees."

Dr. Zaid Bakht said that efforts are being made to implement the government's announced stimulus package to make the country's financial sector self-sufficient during COVID-19 crisis.  In order to pay the salaries of the workers of the export  oriented organisations, we have disbursed 100 percent of the allocated amount. In this segment, we were allocated 135.05   core taka.  Special incentives have been given to 3,673 farmers in the agricultural sector.  This will continue until December.  In the grains and corps sector, we have disbursed Tk 97.21core among 23,144 farmers. He also mentioned that the target for disbursement of working capital under the stimulus package is Tk 894 crore.  The credit committee has recommended Tk 859.25 core and Tk 637 crore has already been sanctioned by the board of the bank.  The rest is being processed.  Hopefully, by October, we will be able to disburse 100% of the allocated fund.