Report on Marketing Analysis of Product of AB Bank Limited (Part

SME Banking

SME Loan

Considering the volume, role and contribution of the SMEs, in the last two decades AB Bank has been patronizing this sector by extending credit facilities of different types and tenor. As of now 54% of the bank’s total loan portfolio is segmented to the SMEs which deserve all out attention in our plans, projections and forecasting.

As such the bank has emphasized on the following issues:

• To provide the best services to the SME sector
• To increase the SME portfolio of ABBL significantly
• To improve the quality of ABBL’s portfolio

SME Sectors in which AB Bank has participated so far:

• Agro machinery
• Poultry
• Animal Feed
• Dairy Product
• Fruit Preservation
• Hotel & Restaurants
• Garments Accessories
• Leather products
• Plastic product
• Furniture : Wooden & Metal
• Ink
• Paint
• Printing & Packaging
• Wire & Cable
• Aluminum
• Cement and Lime Plaster
• Clinics and Hospitals
• Engineering & Scientific Instruments

Large Loan & Project Finance

• In order to cater the demand of client AB Bank has segmented its portfolio in terms of loan size. As per this segmentation any loan over Tk. 10.00 Crore falls under the purview of Large Loan Unit.
• In AB Bank, there is also a separate Project Finance unit who evaluate the business. The unit is entrusted to handle the portfolio in a focused manner. AB Bank is always in fore front to support   establishment of new projects of diverse nature which will help to broaden the manufacturing arena vis-à-vis to generate to employment.
• At the moment AB Bank ‘s exposure in Large Loan & Project Finance portfolio is distributed in the following  sectors:

Loan Syndication

• Syndication or club financing is a growing concept in Banking Arena of Bangladesh. Syndicated finance diversifies the risk of one bank on a single borrower and increases the quality of loan through consensus or cumulative judgment and monitoring of different banks / financial institutions.
• AB Bank, the first bank in the private sector also took initiative to adapt to this growing concept.
• In 1997, AB Bank for the first time arranged a club financing with Dhaka Bank Ltd to raise Tk. 6700 lack – out of which ABBL financed Tk. 5700 Lac and Dhaka bank financed Tk. 1000 Lac.
• In 1999, AB Bank arranged its second syndicated credit facility with IPDC to raise Tk 3563 Lac.
• Since then AB Bank did not look back.
• Since 1997 to 2007 (till date), AB Bank has raised total Tk. 25989.56 Lac as Lead Arranger. The following banks from time to time have been our partners in these syndications:  Dhaka Bank, IPDC, EXIM Bank, Bank Asia, Oriental Bank, NCC Bank, The City Bank, Trust Bank, Bank Asia.
• AB Bank has also participated in different syndications arranged by other Banks, out of which till date 6 (six) syndication has successfully been completed. AB Bank exposure in these completed syndications was   Tk. 4700 Lac.
• At the moment AB has participation in 19 (nineteen) syndicated facilities. AB Bank’s exposure in the ongoing syndication is Tk. 51560.29 Lac which is diversified in the following ten sectors:

Lending Rates

Notes:

1. For lending against ABBL FDR, the rate is minimum 3.00% above the rate of the instrument subject to minimum 12.50%.
2. Exposure under cash collateral of other banks requires clearance from FI & Treasury.

Deposit Rates

Interest Rates with effect from May 12, 2009

Non-Resident Bangladeshi (NRB) Banking

Facilities offered to NRBs
Opening of Foreign Currency A/C: We open Foreign Currency Account in USD/GBP/EUR/JPY for NRBs. Foreign Currency can be remitted by the Nationals of Bangladesh living Abroad earned by them as wage earners or from other sources. The deposit amount can also be used for remittance to other countries as per their requirement. Nominee of Account holder can also able to operate this Account.

NFCD: We issued Foreign Currency Fixed Term Deposit in USD/GBP/EUR with different tenure. Interest is paid in respective Foreign Currency. Rates of Interest are published in our daily Exchange Rate.
Wage Earners Development Bond: These Bonds can be issued from the balance of the FC account with tenure for five years. Rate of interest is 12% p.a. in BDT.

USD Premium Bond: These Bonds can be issued from the balance of the FC account with a tenure for Three years. Rate of interest is 7.5% p.a. in BDT.

USD Investment Bond: These Bonds can be issued from the balance of the FC account with a tenure for Three years. Rate of interest is 6.5% p.a. in USD.

In addition to the above, we also have Drawing Arrangements with 14 (Fourteen) Exchange/Money Transfer Remittance Houses all over the globe to facilitate fast, reliable and hassle-free inward remittance to the expatriate Bangladeshis around the world. We also have special arrangements to credit Beneficiary’s account maintained with us on the same day through our extensive real time on-line network.

List of Exchange / Money Transfer Remittance Houses are as follows:

Money Transfer

Western Uniona fast, reliable and convenient way to send a money transfer

Western Union Financial Services Inc. U.S.A. is the number one and reliable money transfer company in the world. This modern Electronic Technology based money transfer company has earned world wide reputation in transferring money from one country to another country within the shortest possible time.
AB Bank Limited has set up a Representation Agreement with Western Union Financial Services Inc. U.S.A. Millions of people have confidence on Western Union for sending money to their friends and family. Through Western Union Money Transfer Service, Bangladeshi Wage Earners can send and receive money quickly from over 280,000 Western Union Agent Locations in over 200 countries and territories world wide- the world’s largest network of its kind, only by visiting any branches of AB Bank Limited in Bangladesh.

Islamic Banking

To provide the Islamic banking services in accordance with the principles of Islamic Shariah, AB Bank has established Islamic Banking Wing and started its functioning by opening full-fledged Islamic banking branch on 23.12.2004. The branch is known as AB Bank Islami Banking Branch, Kakrail, and is situated at 82, Kakrail, Ramna, Dhaka. Prominent Islami Banker Mr. M. Azizul Huq has joined the Bank as its Islamic Banking Consultant. A dedicated team of experienced Islamic bankers is working under his active guidance both at head office and branch level. A competent Shariah Council consisting of Islamic scholars, Ulemas, Fukaha and Islamic bankers headed by Mr. Shah Abdul Hannan, a prominent Islamic scholar and former Secretary, Government of Bangladesh has also been formed to guide the Islamic banking affairs. Board of directors as well as management of the bank are very much interested to promote Islamic banking system in the bank aiming at opening more Islamic branches in the near future. AB Bank has already obtained membership of Islamic Banks Consultative Forum (IBCF) and Central Shariah Board for Islamic Banks of Bangladesh.
The goals and objectives of Islamic banking Wing are as under:

• To facilitate the Islamic banking system in the country
• To create new entrepreneurs and to arrange required finance for them
• To play effective role for socio economic development of the country
• To give assistance in launching welfare oriented economic system under Islamic values

Under this wing AB Bank extends the following Islamic banking services:

• Deposit services
• Investment services

Under Deposit services the following services are being rendered:

• Mudaraba Savings Account
• Mudaraba Short Noticed Account
• Mudaraba Term Deposit Account (with different terms)
• Mudaraba Monthly Profit Account
• Al-Wadiah Current Deposit Account
• Mudaraba Deposit Pension Scheme

Besides Mudaraba Hajj Deposit Scheme and some other schemes are under process.

Investment Services
AB Bank Islmic Banking Wing provides investment facilities for project finance, working capital finance, SME finance, consumer / retail baking finance etc. under following modes:

• Hire-Purchase under Shirkatul Melk (HPSM): Under this mode the Bank and the client procure asset such as machinery, land , car etc. on equity participation basis. The Bank rents out its portion of assets to the client for a certain period. The client pays the rental with a part of principal amount on monthly / quarterly basis. The client gets its proportionate ownership with the payment of monthly / quarterly installments. On maturity, total ownership of the assets automatically goes to the client as and when final payment of the account is made.
• Ijara or Leasing: It is more or less like the HPSM. In this case equity participation may or may not exist. Ownership of the asset is not automatically transferred to the client with the payments of installments. On maturity, the bank transfers the ownership to the client on payment of certain transfer fees.
• Bai-Muajjal / Bai-Murabaha: These  modes are applicable for working capital finance. Under these schemes bank purchases goods / raw materials as per requirement of the client. In case of Bai-Muajjal bank receives the sales proceed on deferred payment basis. On the other hand in case of Bai-Murabaha Bank receives the sale price at the time of delivery of the goods / raw materials. Before handing over the goods / raw materials the bank generally keeps the same in its custody under pledge.
• Musharaka: Under this mode the Bank and clients jointly participate in a project, in a scheme or project. Profit is shared between the Bank & the concerned client as per pre-agreed ratio. On the other hand  loss is shared according to capital ratio.
• Mudaraba: Under this mode bank finances the scheme as a Shaheb-Al-Maal (owner of the capital). Profit is shared between the two sides as per pre-agreed ratio.

Sector of Investment:
Islamic Banking Wing of the bank finances in all sectors i.e., Industry, business, Agriculture, Real Estate etc. if purpose of the investment  is permissible under Islamic Shariah.

Limit of Investment:
Investment is offered to the extent of single borrower exposure limit as fixed by the Bangladesh Bank from time to time.

Foreign Trade:
Islamic Banking Wing provides the following services at its foreign trade desks:

• Opening of LCs
• Post -Import Finance
• Export bill purchase and negotiation
• Pre-shipment financing etc.

AB Bank Islamic Banking Wing has been continuously trying to expand it’s service horizon keeping the necessity of valued clients in view and upholding the principle of Islamic Shariah.

Merchant Banking Wing (MBW)

AB Bank Limited is the first Private Sector Joint Venture Bank in Bangladesh, which is now fully owned by the Bangladeshis. Since our inception in 1982, we have been participating in different industrial and national development activities in addition to normal Trade Finance and SME development. In addition to the 73 Branches within the country ABBL has a branch in Mumbai, India. Beside that we have a wholly owned Finance Company in Hong Kong in the name and style of “AB International Finance Limited” and representative offices at London and Yangoon.

To expand its horizon, ABBL launched its Merchant Banking operations in the year 2003. As a full fledged merchant banker, we provide the following services:

1. Portfolio Management
2. Issue Management
3. Underwriting
4. Corporate Advisory
5. Bankers to the Issue
6. Private Placement

The Merchant Banking Wing (MBW) of ABBL has made notable progress and is presently equipped to serve customers’ needs by offering a comprehensive range of financial solutions. We have also launched Custodial Services with a view to provide one-stop Capital Market services to our valued clients.

We understand an entrepreneur’s need for stability, trust, innovation and creativity required for the consolidation and growth of investments and endeavors to prosper. The professionals in our MBW with its state of the art integrated computerized system, are always there to provide their vision, knowledge and service for your success. Why?

Because, we at ABBL, measure our success by the number of satisfied customer within a time frame.

Custodial Service

Customers:
Investors Who Are Interested to Invest In the Bangladesh Capital Market
• Non Resident Bangladeshi (NRBs)

• Foreign Institutional and individual clients

• Local Institutions

• Sponsors’ group and High net worth client
Services:
• Safe custody of client securities

• Foreign Trade Execution and Settlement

• Share transfer in the name of client

• Complete the Dematerialization process as per client request

• IPO, Private Placement & Right share subscription as per client instruction with deposit
• All types of corporate action that includes cash dividend, bonus share and right share collection

• Open BO account

• Instant information regarding client securities position as per their request

• Quarterly reporting to the client by Custodial Department
Account Opening Procedure:

Account Opening Procedure

Criteria for opening an account:

i.            The non-resident investor shall open a NITA (Non-resident investors’ taka account) with any commercial bank in Bangladesh, with freely convertible foreign currency remitted from abroad through normal banking channel or by transfer of funds from the non-resident investor’s foreign currency account, if any, in Bangladesh;

ii.            Any two Bangladeshi national and Non Resident Bangladeshi of sound mind having a minimum age of 18 years may open two accounts on each in their single name and the other in their joint names.

iii.            Account opening absolutely depends upon the management of ABBL.

iv.            Proper documents should be submitted at the time of account opening.
v.            Foreign investor has to open FC account along with NRITA account at the time of custodial account opening.

Account opening formalities

Foreign Currency Account Opening:

i.            Duly signed account opening form

ii.            Submit Name, signature and photograph of the Nominee

iii.            Transaction profile

iv.            Signature of an introducer must be incorporated

v.            Supporting Documents:

vi.            Copy of the passport
vii.            Bank statement/ Work permit (in case of NRB)

Non-resident Taka Account (NITA) Opening:

i.            Duly signed account opening form

ii.            Transaction profile

Custodial Account Opening:

i.            Duly Signed account opening form of Custodial

ii.            Duly signed custodial agreement (must be signed in all pages)

iii.            Duly signed Power of Attorney (POA) in non-judicial stamp of Tk. 200/-

iv.            Supporting Documents:

• Copy of the passport
• Bank statement/ Work permit (in case of NRB)

Beneficiary Owner (BO) Account Opening:

i.            Duly signed BO account opening form

ii.            Duly signed BO agreement (must be signed in all pages)

Brokerage Account Opening:

i.            Duly signed account opening form with AB Bank Foundation

ii.            Nomination Form duly signed

iii.            Agreement with AB Bank Foundation

iv.            Supporting Documents:

v.            Copy of the passport

vi.            Bank statement/ Work permit (in case of NRB)

Procedure of Notarization of Power of Attorney Documents

It should be notarized by the Notary Public at the place of its execution, thereafter to authenticated by Bangladesh Embassy, therein and Ministry of Foreign affairs of Bangladesh upon arrival in Bangladesh. Thereafter stamp duty of Tk. 200/- is to be paid in Central Treasury of the Government of Bangladesh through Treasury Challan.

Brokerage Service

Introduction:
AB Bank Foundation (ABBF) is a subsidiary company of AB Bank Limited having holding 99.60% shares of the ABBF. The company was first established under the trust deed constituted and registered on the 14th day of May 2002. Subsequently the trust by a resolution of its Board of trustee in its 3rd meeting held on 29.12.2002 resolved to cancel the Trust Deed and utilize the trust fund for the foundation of a company limited by guarantee primarily for charitable purpose. Then the company was incorporated on 3rd day of November 2003 under section 28 of Companies Act 1994, a company limited by guarantee. The certificate of incorporation is C-558(10)/2003.

The ABBF and its activities:

AB Bank Foundation (ABBF) is one of the country’s leading securities broker houses of Dhaka Stock Exchange (member # 201) and Chittagong Stock Exchange (member # 101). ABBF has started its operation by soft launching on 28th August 2006. Initially, we have started our operation by giving service to client of AB Bank Merchant Banking wing. We have already started our operation in full swing in our corporate head office and Chittagong. In near future, we will start our Mohakhali and Agrabad branch operation.
Services:

1.      Brokerage Services

AB Bank’s subsidiary, AB Bank Foundation, which has corporate memberships on the Dhaka and Chittagong Stock Exchanges, can act as brokers on behalf of local and foreign individual and institutional client to trade in the local capital market. AB Bank’s Sales & Trading Department will also support brokerage service for offloading shares through direct listing.

2.      CDBL Services as full service Depository Participant (DP)

As a full service depository participant, AB Bank Foundation provides following services,
a) BO (Beneficial Owner) accounts opening and maintenance.

b) Dematerialization & c) Rematerialization

c) Freeze (freeze request and release request) and suspensions

d) Pledging, unpledging and confiscation

e) BO ISIN balances and master maintenance enquiry

Future Products

Expansion
To extend our Merchant Banking services across the country, MBW has already launched its operation in Agrabad (Chittagong). We are going to open 3 new service networks in Mohakhali (Dhaka), Uttara (Dhaka) and Sylhet soon.

New Business

In addition, AB Bank will also expand its operations in the investment banking in the following areas

Cards

In the present context of banking business in the world, Card is the future of any bank. Electronic payment system is now ruling the world and some days from now cash transactions system will turn into a history found only in the text book.
AB Bank Limited is one of the leading first generation private sector commercial banks with Branch Network all over the country. The Bank started issuing VISA Credit Cards from the end of year 2004 as a principal member of VISA International.
Brief description of different features:
Card Conversion & Balance Transfer Plan

‘Card Conversion & Balance Transfer Plan’ to AB Bank VISA Credit Card will be extended towards all local Credit Cardholders of the market, provided that their ‘other banks’ credit card is in ‘regular’ state, not in ‘overdue’ state. Cardholders will repay the approved transferred amounts to AB Bank Credit Card Account in monthly installments stated in their monthly statements. Other bank credit cardholders having regular payment history will also be allowed to apply for this facility along with their new AB Bank Credit Card application form. You can convert your other bank card to AB Bank Card and get interest facility @ 19.95% on your outstanding.

EasyBuy
‘EasyBuy‘ Installment Plan to AB Bank VISA Credit Card will be extended towards all AB Bank Visa Credit Cardholders. Cardholders can convert any retail purchase done using AB Bank credit card into an installment scheme where they can pay back the amount at rate of interest of 19.95% per annum over a tenor ranging from 6 months to 48 months.
Easy, convenient and affordable

Under the Easy buy program, cardholder can choose own installment plan, ranging from 6 to 48 months.

1. Simple procedure, no documentation, no down payment
2. Available in comfortable payment options of 6 months to 48 months
3. Process just a call away

No cash advance fee
No cash advance fee for cash withdrawal from AB Bank ATM Booths & Tk.10 only per cash withdrawal will be charged from other Q Cash ATM booths. Market rate is Tk. 125 per cash withdrawal.

Auto bills pay facility
Hassle free monthly payment from AB Bank Account holders.

Higher transaction limit
AB Bank VISA card gives you the facility to withdraw up to Tk. 60,000 or 50% of your credit limit (whichever is lower) of the credit limit from any ATM with Visa logo.

Lot more features are in the pipeline to add more value to satisfy AB Bank customers.

Looking for a safe storage place for your valuables?

A Safe Deposit Locker with AB Bank is the solution to your concern. Located at select branches in cities all over the country, our lockers ensure the safe keeping of your valuables.

Advantages / Key Benefits:

• Wide Availability.
• Lockers available in various sizes. i.e. Small, Medium and Large with varying rents.
• Lockers are rented out for a minimum period of one year. Rent is payable in advance.
• The rent may be conveniently paid from your deposit account with us.
• Direct debits for locker rentals from your account rid you of the hassles in writing out Cheque.

Eligibility:

An individual (not minor), firms, limited company, associations, clubs, trusts, societies, etc may hire a locker.

Nomination for Safe Deposit Locker:

• The Lockers and their contents can be nominated to people near and dear to you.
• Nomination facility is available to individual hirer of Safe Deposit Locker.
• In the case of a sole hirer of a safe deposit locker, nomination can be made in favour of only one individual.
• Where the safe deposit locker is hired in the name of a minor, the nomination shall be made by a person lawfully entitled to act on behalf of the minor.

Terms & Conditions:

• For obtaining a Locker at AB Bank you must be an account holder with our Bank.
• Lockers can be allotted individually as well as jointly.
• The Locker holder is permitted to add or delete names from the list of persons who can operate the Locker and can have access to it.
• Loss of Key is to be immediately informed to the concerned Branch.
• For Schedule of Rentals, please contact the branch nearest to you.

Following Branches provides Locker Service.

Dhanmondi
Plot: 45 (new) 286/B (old), Road: 16 (new) 27 (old), Dhanmondi R/A, Dhaka 1209
Tel: 8117861, 9146489
Fax: 8115609
E-mail: [email protected]

Gulshan
House CWN(A)3, Road 49
Gulshan Model Town, Dhaka 1212
Tel: 9887169, 9884365
Fax: 9882696
E-mail: [email protected]

Imamganj
40, Imamganj, Dhaka
Tel: 7321594, 7321625
Fax: 7314111,
E-mail: [email protected]Islami Banking Branch
82, Kakrail, Ramna, Dhaka
Tel: 8332235, 37, 38
Fax: 8332236
E-mail: [email protected]Jinjira
Hazi Karim Market, Purba Aganagar, Gudara Ghat Road, Keranigonj, Dhaka
Tel:  7772234, 7771805
Fax: 7771805
E-mail: [email protected]

Joypara
Dohar, Dhaka
Tel: (038946) 80018
Fax: (038946) 80400
E-mail: [email protected]

Kakrail
81, VIP Road, Dhaka 1000
Tel: 9339036, 8315462, 9351177
Fax: 8311324
E-mail: [email protected]

Dhanmondi
BSEC Bhaban
102 Kazi Nazrul Islam Avenue, Dhaka 1215
Tel: 8117598-9, 8112253, 8112251
E-mail: [email protected]

Mohakhali
Pacific Centre (1st Floor), 14 Mohakhali C/A Dhaka 1212
Tel: 8821537-8
Fax: 8811963
E-mail: [email protected]Narayanganj
109 B.B. Road Narayangonj
Tel: 7640124, 7634707
Fax: 7632187
E-mail: [email protected]New Elephant Road
Novera Square
House 05, Road 02
Dhanmondi, Dhaka 1205
Tel 8616137, 9674002, 8613967
Fax: 8616128
E-mail: [email protected]

North South Road
9/1 North South Road (Bangshal), Dhaka 1100
Tel: 9562817, 9565956, 7163110
Fax: 9562817
E-mail: [email protected]

Rokeya Sharani
923, Shewrapara Rokeya Sharani
Mirpur, Dhaka
Tel: 9014290, 9012607
Fax: 9012607
E-mail: [email protected]

Uttara
House 11, Road 14D, Sector 4
Uttara, Dhaka
Tel: 8918180, 8918758
Fax: 8921566
E-mail: [email protected]Branches: Chittagong DivisionAgrabad
BCIC Sadan
26, Agrabad C/A, Chittagong
P.O. Box: 92
Tel: (031) 713381-83
Fax: (031) 713384 / 86
SWIFT: ABBLBDDHA101
E-mail: [email protected]Brahmanbaria
1090/5321, Court Road
Brahmanbaria
Tel: (0851) 59065, 58452, 59743
Fax: (54018) 0851
E-mail: [email protected]

CDA Avenue
BMA Bhaban (Ground Floor), 1367 CDA Avenue
East Nasirabad, Chittagong.
Tel: (031) 651048, 654368
Fax: (031) 651048
E-mail: [email protected]Chawk Bazar
Moti Tower, 67/68 College Road, Chawkbazar, Chittagong
Tel: (031) 618350, 618805
Fax: (031) 618350
E-mail: [email protected]Comilla
Mogholtooly Super Market (1st floor), Mogholtooly Road, Comilla
Tel: (081) 68773, 65473
Fax: (081) 65473-101
E-mail: [email protected]

Feni
Haque Plaza (1st floor)
193, SSK Road,
Feni
Tel: (0331) 63098-99
E-mail: [email protected]

Jubilee Road
175, Jubilee Road, Enayet Bazar
Chittagong
Tel: (031) 613362, 623316
Fax: (031) 613362
E-mail: [email protected]Khulshi
Khulshi House, Bungalow No. 2
B-2, Road No. 1, P.S.: Khulshi
Chittagong
Tel: 2551649, 2551657, 01199704478
Fax: 2551649
E-mail: [email protected]Port Connecting Road
5, Port Connecting Road, Block G, Barapole, Halishahar, Chittagong
Tel: (031) 727321, 727844
E-mail: [email protected]

Pahartoli
Abdur Rahim Tower (1st Floor)
Hold # 972/1043, D.T. Road
Ward # 098, A. K. Khan Gate
North Pahartoli, Chittagong
E-mail: [email protected]Branches: Sylhet DivisionGarden Tower
Biswa Road, Shahjalal Uposhohor Point, Sylhet 3100
Tel: (0821) 725042, 815085
Fax: (0821) 725042
E-mail: [email protected]Modhuban Super Market
Bandar Bazar, Sylhet
Tel: (0821) 714052, 714054
Fax: 714053
E-mail: [email protected]Moulvibazar
Shamsher Nagar Road, Choumuhana, Moulvibazar
Tel: (0861) 53152, 52880
Fax: (0861) 53152
E-mail: [email protected]Sreemongal
Aziz Super Market, Moulvibazar Road, Sreemangal, Moulvibazar
Tel: (08626) 71322, (08626) 71718
E-mail: [email protected]Branches: Barisal DivisionBarisal
Monsur Mansion, 101 Sadar Road, Barisal
Tel: (0431) 63562, 2173186
Fax: (0431) 63562
E-mail: [email protected]

DISCUSSION & FINDING

Though AB bank is one of the initial private bank in Bangladesh, it’s achievement during this 21 years is not satisfactory. It is well decorative but doesn’t avail with all sorts of modern banking facilities. More over it’s marketing is not up to the mark. The bank couldn’t establish & spread it’s branches to the remote corner of the country. This is why, being one of the primary private bank of Bangladesh it never could become one of the leading Bank of Bangladesh. 

SWOT ANALYSIS

Sizing up a firm’s resource strengths and weaknesses and it’s external opportunities and threats, commonly known as SWOT analysis, provided a good overview of whether a firm’s business position is fundamentally healthy or unhealthy. SWOT analysis is grounded in the basic principle that strategy-making efforts must aim at producing a good fit between a company’s resource capability and its external situation.  Perceptive understanding of a company’s resource capabilities and deficiencies, its market opportunities, and the external threats to its futures well-being is essential to understand or predict the essential of that company. To understand or predict the essentials of AB Bank Limited now I am going to perform SWOT analysis of AB Bank Limited.

Strength

Customer Loyalty

ABBL has got the highest number of branches throughout the nation as a private bank.

Weakness

ABBL still not in online operation

ABBL does not have sufficient amount of ATM booth

Opportunity

Huge Number of depositor

Threat

New Banks, who offer more interest on deposit

New Product offered by the new bank

Strengths and the Opportunity is normally shows the potentiality of the bank. ABBL also have some weakness and threat but they already take some initiative to remove those weakness and threat. ABBL start their operation to introduce automation in there daily banking operation and most of their branch now ready to go for online. ABBL take initiative to established ATM in different important location. To avoid the threat of new bank, ABBL now offer same interest on deposit as offer the new banks. ABBL also launch some new product in the market which will attract new customer and also help the bank to compete with the new bank. So, here we see that ABBL have got the high potentials in the money market of Bangladesh because they have many Strengths and weakness and they already take initiative to avoid the weakness and external threat.

Online Operation

The major problem of AB is, till now they don’t introduce the online operation while the most of the private bank going through the online operation. As a result the customer, who have account with the bank that has online operation, can withdraw money or deposit money from any of that branch but AB Bank Ltd can’t provide that facility to its customer. That deficiency dissatisfied their customer and lead them to switch other private bank those has online operation because consumer always looking for batter services.

Use of Equity Capital

In above graph (Equity Multiplier) we see that the equity multiplier ratio is decreasing by the time which indicate that AB Bank Ltd using more equity capital than the debt. That way could help them to reduce the risk but, in future, it could reduce the rate of return to the shareholder.

Communication

AB Bank Ltd doesn’t use any kind of communication solution. Like Globe Pharmaceuticals recently make an agreement with Grameen Phone, under which agreement Globe Pharmaceuticals get the communication facility (internal and external) at a lower price as compare to the individual customer. AB Bank Ltd doesn’t use that type of communication package which could reduce their communication expenses.

ATM Booth

In today’s banking service the most popular one is ATM (Automated Tailoring Machine) service by which customer can withdraw their money (up to a certain limit) without gone through the bank or without issuing any Cheque. Mentionable amounts of private bank have sufficient number of ATM booths in the country, especially in Dhaka city. But AB Bank Ltd doesn’t have sufficient amount of ATM booths to meet its existent customer demand, not yet.

New and Diversified Product

In our country now the most booming industry is banking industry. And it is happened because a noticeable number of bank coming into this industry and they offer different kind of product to meet the customer attraction to them. Here AB Bank doesn’t trying to innovate something new to its customer.

Marketing

The most important and biggest source of income for a bank is the interest on loan. To increase that interest bank have to disburse more loan to the client and to get more client bank need to have a good marketing team. Because in today’s world the consumer are highly influenced by the marketing and more specifically by the advertisement , through which they can know different kind of  information about a product and be able to compare one product with another, that’s why now the most effective way to attract consumer attraction is marketing. While some of private bank have a separate marketing team who especially work to increase the deposit and loan for the bank. But AB Bank doesn’t have that kind of team.

CONCLUSIONS

At the last phase of my report I could say that AB Bank Ltd still has some problems to take care. One of the most important problem is they doesn’t operate in online while most of the private go through online. But the good thing is Bank can realize that problem and they already take some initiatives to face that problem that means they are preparing to go into online operation. When I analyze the performance the most concern-able thing I seen that AB Bank Ltd collect more equity than the debt which is decreasing the risk of failure but it may decrease the rate of return to the shareholder in future. Another thing needs to mention here that a huge amount of new private bank now operating in our country so AB Bank Ltd should take sound initiative to compete with them. During my internship program one common thing I seen, that most of the employee of the AB Bank Ltd is not happy about their position, so I think bank should take some initiative to motivate their employee. 

RECOMMENDATION & SUGGESTION

AB Bank Ltd could collect the returned Cheque on the second working day through phone or Fax. If they do it they will be able to credit those parties account who’s Cheque didn’t returned and the parties will be able to withdraw that money on the second working day.

To minimize the cost of TT AB Bank Ltd could cut down the TTICA sending option, which means they could stop to send the TTICA to the drawn branch. If it is not possible they could send those TTICA on monthly basis. Like, AB Bank Ltd, Dhanmondi Branch sends all the TTICA for the months of August at the end of the August or at the first working day of September. I think that will reduce the cost of outgoing TT and it will also save the time.

Bank could give authority to the accounts opening officer to verify the signature, at least only for Cheques requisition. As a result accounts opening officer could verify the signature and issue Cheque book to the clients which means clients don’t have to wait for long. AB Bank Ltd should update their infrastructural facility by adding some new technological equipment which is required to maintain the daily banking activity. Bank also could take some initiative to increase the efficiency of the employee. They could arrange seminars on recent banking issue specially the problem in banking sector; they also could arrange different kind of training program to train up their employee.

One of the most important functions of General Banking sector is the loan function. To attract the customer for loan a bank should have sound marketing activity. From my point of view, one of the most noticeable lack of AB Bank Ltd is they doesn’t have strong and effective marketing active in the market. While the customers are highly influenced by the marketing of other banks operate in our country. And I think AB Bank Ltd should give more emphasis on the marketing of their product and service those they provide to their customer.

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