Saving but the person will get interest in

Saving Account:

with fixed salary generally prefer savings account. This account offers them an
opportunity to save a portion of their present income and which produce interest
that can be used to meet future needs. Any person can open a savings account in
Agrani Bank by depositing Tk. 100. This is an interest paying account and
Agrani Bank offers 8% interest, based on the saved amount interest may be paid
monthly or annual or other time intervals, which is higher than short-term
deposits but lower than fixed deposits  account. Bank enforces certain restrictions on
the numbers and amount of withdrawals from a savings account. .An advance
notice of seven days is necessary (i) to extract money more than twice in a
week or (ii) to draw money more than 25% of balance amount, otherwise the account
holder will not get any interest of that particular month. 15%  Value added Tax (VAT) is imposed on interest
earned amount.

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Time Deposit:

Those  deposits which are held by bank and financial
institution for fixed period plus other deposits that can be withdrawn by
notice only are called time deposit. From the above definition we come up with
two types of time deposit:

Deposits that are kept with bank or other financial institution for a fixed
period is called fixed deposits

Other deposits that can be withdrawn from the bank and other financial
institution by notice only  are called
special time deposits.




Fixed Deposits:

 Deposits that are kept for a fixed period with
a bank is called fixed deposit .This deposits kept in bank once in an account. Usually
a big amount of money is reserved in this account. Period of deposit differs
from 3 months to 60 months. Advance can be drawn against fixed deposit, One can
withdraw the money of fixed deposit before the deadline of the period but the
person will get interest in a  previous
entitled ceiling interest rate. But to get this one has to deposit the amount
for at least 3 months to become worthy for interest. The interest rates of
fixed deposits are as follows:

ceiling Deposit ceiling

months & above but less than 6 months 4.50

months & above but less than 1 year 4.75

year & above but less than 2 year 5.00

year & above but less than 3 year 6.00

year & above but not more than 5 year 7.00


Time Deposit: Usually different types of organizations like government,
autonomous, semi-autonomous organizations maintain this type of account. A
notice is to be given before 7 days of withdrawal of the deposit. Mentioned
amount in the notice will be excluded from interest consideration. Current
interest rate is 4.00%.

Bank tries to provide customer services in better way. Agrani Bank has the
following facility of remittance within and outside the country.

1.      Demand

2.      Pay

3.      Telegraphic



Demand Draft (DP):

demand draft is an unconditional order of the bankers to one branch to another
to pay to some   amount to a person or
order the amount to be maintained therein on demand.


Pay Order (PO):

orders are written orders, issued by a branch of bank, to pay a certain amount
of money to a particular person or a bank .It is sometime said as to be a
banker’s check as it is issued by a bank and. payable by itself.


Telegraphic Transfer ( TT):

telegraphic Transfer is a method of remittance, which is made by the banker
through a coded telegram attested by secret check signal, on receipt of it, the
paying office pay the amount to the payee by crediting his/her account.




2. Credit operation:

Bank provides a wide range of loans and advances to different industries.
Agrani Bank provide credit in trade and commerce, agriculture, industry, housing
and other industries, Bank has recognized the following industrial sectors as
top priority sectors and has decided to provide loans and advances at a
concession interest rate that is going on:

Agro-based industry like processing and conservation
of local fruits

technology and computer software.



Nontraditional exportable agriculture

 Artificial flower production.

leather products.


and diamond cutting and polishing.

jute goods.


of silkworm and silk industry.

and gas.

Textile industry (except RMG).


Organizational structure

Bank has a board of directors comprise of seven members as authority of bank’s
internal policy making. The government employs chairman and director of the
board. Managing Director is a member the board of directors and at the same
time chief exceptive of the bank. Board of directors implement administrative,
business, financial power and internal policy of bank under the power or
authority assigned upon the board by the government. The bank has 11 Circle
offices, 25 Divisions in head office, 62 zonal offices and 879 branches
including 27 corporate and 40 AD (authorized dealer) branches

Organizational structure of Arani bank ltd is divided into five layers such as:

Head office



 Corporate branch








Strategic issue facing by Agrani
bank ltd

are at list four strategic issues are facing by Agrani bank ltd. They are
mention below

Technological development

Customer satisfaction

Regulatory pressure

Increasing competition.


Technological development:

Bill Gates (2008)
announced that banking is essential, banks are not. This quotation means that
the traditional bank branch is going to be replaced by the technology driven
modern banking and this will attract new users. For more then a decade, the fast development in
information and communication technology has significantly affected the banking
sector. Banks and other financial institutions have worked a lot to improve
their services as financial intermediary through adopting various Information
Technologies. Technology has become a very important element that facilitates
banks’ organizational structures, business strategies, customer services and
related functions. The current “Information Technology (IT)
revolution” has created far-reaching impact on economics, in general, and
the financial service industry, in Bangladeshi Banking industry is
not a exception of this the recent technological development has created a huge
impact on bangladesi banking industry as well as the 


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