Human Resource Management

Human Resource Management Practices in Banking Sector

Human Resource Management Practices in Banking Sector

Main purpose of this report is to analysis Human Resource Management Practices in Banking Sector, here focus on AB Bank Limited. other objectives are to review the Human Resource policies of AB Bank Limited and identify the constraints in implementing Human Resource Policies. Finally find out some problems and to suggest some solutions to facilitate the future Bank administrators and draw SWOT analysis based on Human Resource Management policies.



This report highlights about evaluation and assessment of AB Bank Human Resource Practices. Information has taken from company’s website, internal papers and practical works. The main objective was to find out the overall condition of Human Resources Management Practice in Banking Sector: A Case Study on AB Bank Ltd. To prepare this report the researcher mainly depends on the experience and secondary data. Besides this I have also used primary data. Company Insight, advertising, catalogues of the Company brochures, books, reports etc. are the sources of secondary data. Based on these information, I prepared this qualitative report, because it was like having an unstructured exploratory research methodology based on observation for providing insight of the report topic.

The AB Bank Limited, the first private sector bank under Joint Venture with Dubai Bank Limited, UAE incorporated in Bangladesh on 31st December 1981 and started its operation with effect from April 12, 1982. The AB Bank Limited Management Team comprises of a group of people and each of them comes with an international working background and is committed in leveraging their experience to take ABBL to greater heights by ensuring top line revenues with dynamic capabilities.

Human resource management can be defined as a process of procuring, developing & maintaining competent human resource in the organization so that goals of an organization are achieved in an effective and efficient manner. Human Resource Management ‘The policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising. Human Resource Division of ABBL is one of the most valuable departments with the responsibilities of staffing, training and development, organization development, performance appraisals, rewarding, control and maintenance etc. The Human Resource of ABBL is exactly well thought and perfectly managed. As from the very first, top management beloved in empowered employees, where they refused to put their finger in every part of the pie. These employees are not suffocated with authority but are able to grow as the organization matures. Job description is a necessary accomplishment should have for each position for recruiting the most suitable candidate on the basis of skill and experience required. Still hundred percent job descriptions is not prepared or collected by the HR Division. Human Resources Information System is must for a corporate environment like ABBL. ABBL is going to establish a new HRIS very soon.

ABBL is committed to focus all its energy on its customer as well as its employees. This is sure a strong Human Recourse practices will help ABBL to pave the way leading to outmost destination. Human Resources Division in ABBL is under massive reconstruction program which ensure will the future benefits and high corporate culture and the secured place of contribution and dedication the experience and the exposure of high professionalism.

Thesis paper experience plays a vital role for every student to implement his or her theoretical knowledge and to get knowledge from any organization. In order to complete BBA degree, Thesis paper report is one of crucial part in the final semester to complete BBA degree from Stamford University Bangladesh. AB Bank Limited gives the opportunity for, preparing this report.

Well- educated, dedicated, skilled and enterprising workforce is the sine-qua-non for the progress and development of a service oriented industry like Bank. From very first emergence and inception of modern civilization, Bank plays a pivotal role in case of overall financial and socioeconomic development of any modern country. The economic development of our country mainly depend upon the efficiency of the banking results is so far as, whether the bankers have been able to read the economic situation properly and are successful in selecting the promising industrial sectors seeking import and export assistance to grow. With the rapid changes of time mans are readily depend on banking services in case of handling cash, transferring cash, and also financing in various industrial and business projects. So it is very much needed to develop the banking practices in order to provide better day-to-day banking services to the valued customers.  Because a service oriented industry a bank should believe that customers is all and the king. The government of our country and the central bank i.e., the Bangladesh Bank has decided to extend considerable help in every aspect of banking to concerned people. Like other nationalized and non-nationalized commercial banks the AB Bank limited serves the nation by providing various modern banking services and products.


Objectives of the Report:

General Objective:

The general objective of the study is to gather practical knowledge regarding banking system and operation and human resource division. The practical orientation gives us a chance to relate the four year long theoretical learning of BBA Program with the practical experience. This consists the following:

  1. To achieve overall understanding of AB Bank Limited
  2. To know the different practices of the Human Resources Division of a Bank.
  3. To review the Human Resource policies of AB Bank Limited.
  4. Identify the constraints in implementing Human Resource Policies.
  5. Find out some problems and to suggest some solutions to facilitate the future Bank administrators.

Specific Objective:

  1. To fulfill of particular requirement of BBA program
  2. To apply theoretical knowledge in the practical field.
  3. To present an overview of AB Bank Ltd.
  4. To develop our skill on the banking sector.
  5. To analyze general banking practices of the bank.
  6. To earn valuable knowledge about the foreign trade in banking sector.
  7. To compare the real practices of the bank with the rules and regulation of the country.
  8. To know the customer service of banking sector.
  9. To know how to well manage the customers.
  10. To find out the problems regarding the general banking confronted by the bank.
  11. To observed the practice of modern technology in banking sector.
  12. To know about foreign exchange system
  13. To get practical knowledge about money transactions.
  14. To observe the different types of products & services available in AB Bank Ltd.
  15. Understanding the customer behavior for assure the creativity of product features.
  16. To assess the strength and weakness.
  17. To identify possible areas of improvement.



With a view to conducting a research study, what is necessary is to design the research framework and select the appropriate research methodology. A research design is simply a framework or a plan for a study that may be used as a guide in collecting and analyzing data.. On the other hand, the research methodology is a way to systematically solve the research problem. Methodology means the underlying principles and of the organization of a philosophical system or inquiry procedure. This thesis report plays a good role for the research, because that gives knowledge to implementation of the theoretical knowledge. Without adopting proper methods it is difficult to conduct a successful research. The optimum outcome of the research depends largely on adopting the methods suitable to the research topic in the field of investigation.

To prepare this report I mainly depends on the secondary data. Besides this I have also used primary data. Company Insight, advertising, catalogues of the Company brochures, books, reports etc. are the sources of secondary data. Based on these information, I prepared this qualitative report, because it was like having an unstructured exploratory research methodology based on observation for providing insight of the report topic.


Concept of HRM planning and forecasting:

Hr planning is the first step in the Recruiting & Selection process. “Personnel planning is the process of deciding what positions the firm will have to fill, and how to fill them.” – – Gary dessert

HRP consists of the following elements:

    1. Establishing and recognizing the future job requirement
    2.  Identifying deficiency in terms of quantity
    3. Identifying deficiency in terms of quantity and specification
    4. Identifying the source of right type of language
    5. Developing the available manpower
    6. Ensuring the effective utilization of workforce


HRM: A conceptual and theoretical analysis

Human resource management  is the policies and practices involved in carrying  out the ’people’ or human resource aspects of a management position, including recruiting, screening, training, rewarding, appraising and compensating employees, and attending to their labor relations, health and safety, and fairness concern. It provides with the concepts and technique which we need to carry out the ‘people’ or personal aspects of any management job. Those includes

  • Conduction job analysis
  • Planning labor needs and recruiting job candidates
  • Selecting job candidates
  • Orienting and training new employees
  • Managing wages and salaries
  • Providing incentives and benefits
  • Appraising performance
  • Communicating (interviewing, counseling, disciplining)
  • Training and developing managers
  • Building employee commitments


Human Resource Management (HRM) related Terminologies:   

Human Resource Management is not a different arena. It is an orientation of HRM practices in a different way. Most of the HRM terminologies are also related to HRM terminologies. Important HRM terminologies are given below:

  • Discipline

Discipline is a condition in the organization when employees conduct themselves in accordance with the organization’s rules and standards of acceptable behavior.

  • Human Capital

Knowledge kills & abilities of the employees are considered as human assets.

  • Job analysis

A Job analysis is a systematic exploration of the activities within a job. It is a technical procedure used to define duties, responsibilities and accountabilities of a job. There are two products of a job analysis program. a) Job description & b) Job specification.

  • Job description

A list of a job’s duties, responsibilities, reporting relationships, working conditions and supervisory responsibilities.

  •  Job specification:

A list of a job’s “human requirements”, that is the requisite education, skills, personality, and so on.

  • Job evaluation

Job evaluation is the process of using job analysis information in establishing a compensation system.

  • Job enrichment

Job enrichment is a process of allowing employees to do more planning and controlling of their work.

  • Recruitment

Recruitment is the process of discovering potential job candidates. Recruiting is the discovering of potential applicants for actual or anticipated organizational vacancies. It involves searching and souring for viable job candidates.

  • Selection

Selection is a process of hiring suitable people for job. Right man for right job is the main goal of selection. The selection process involves many steps such as preliminary reception of application, interviewing, test, medical test, references and final decision of hiring.

  • Orientation

Orientation is a process of getting new employees acquainted with the organization, its culture, rules and regulation, objectives and supervisors and other employees. It is the act of introducing new employees to organization and their work units. It is important because it helps new employee to adapt with new situation.

  • Training & Development

Training is a continual process of helping employees to perform at a high level. It is a process of acquiring new skills to do job properly. Training changes and modifies employee attitudes and behaviors that will improve his ability to perform on the job. To be effective, a training program must accomplish a number of objectives. First, it must be based on both organizational and individual needs. Second, the objectives of training should spell out what problems will be solved. Third, all training should be based on sound theories of learning. Finally, a training program must be evaluated to determine whether it is working.

  • Motivation

Motivation is set of forces that cause people behave in a certain way. On any given day, an employee may choose to work as hard as possible at a job, to work just hard enough to avoid a reprimand or to do as little as possible.

  • Performance appraisal

Performance appraisal is a formal assessment of how well employees are performing their jobs.

  • Placement

Placement is the assignment or reassignment of duties to employee. It may take different forms such as promotion, transfer, demotion, and termination.

  • Compensation

Compensation is the reward or price for labor. The goal of compensation administration are to design the lowest-cost pay structure that will attract, motivate and retain competent employees, and that also will be perceived as fair by these employees.

  • Demotion

If suspension has not been effective and management wants to strongly avoid dismissing the problem employee, demotion may be an alternative. A demotion is a constant punishment to the demoted employee and hence has broad motivation implications.

  • Suspension

A period of time off from work as a result of a disciplinary process.


Necessity of HRM

Human Resources Management (HRM) is responsible for the people dimension of the organization. It is responsible for getting competent people, training them, getting them to perform at high effort levels, and providing mechanisms to ensure that these employees maintain their productive affiliation with the organizations. Strategic Human Resource Management (HRM) is very important in the context of Globalization & also in the service organizations/banks. These importances are shown below:

A) Necessity of HRM in the context of Globalization

In the age of globalization, no organization can ignore the impact of globalization. Even pure domestic firms face competition with the global firms. If it is the large organization especially for the multinational enterprises the impact of the globalization is tremendous. Necessities of SHRM in the context of Globalization are pointed out below:

  • Cost effective utilization human resources to obtain & retain competitive advantage in the global arena
  • SHRM links HRM activities with the goals & objective of the organizations. This facilitates the goal realization.
  • Efficiency & effectiveness of the global firms are increased through the implementation of the SHRM policies
  • Recruitment & maintenance effective workforce that right man in the right place at the right time
  • Ensuring effective training system to cope with the rapid technological change
  • Hiring qualified workforce so that they can handle any volatile/extra-ordinary situation
  • Through the HR information system SHRM provides information to the other departments to perform their role.

B) Necessity of HRM in the service organizations especially in the banks

Employees (human resources) directly interact with the customers in the service organizations. Banks do business with the money of others. So especial care & high vigilance from the part of the employees are required in the banks.

SHRM is required to formulate & implement policies

  • Highly Skilled, educated, dynamic & smart employees create positive image for the organization
  • Applying appropriate training & development system for the human resource development
  • It also facilitate in formulating competitive compensation package for the organization
  • It can design fair & appropriate performance appraisal & promotion system which can be motivating factors for the employees
  • Rigid recruitment procedure is required to get qualified employees
  • Retirement policies can also be helpful to increase the efficiency & effectiveness of the service firms.


Historical background of AB Bank Ltd.

Arab Bangladesh Bank Limited, the first private sector Bank under Joint Venture with Dubai Bank Limited, UAE incorporated in Bangladesh on 31st December 1981 and started its operation with effect from April 12, 1982.


Dubai Bank Limited (name subsequently changed to Union Bank of the Middleast Limited) decided to off-load their investment in Arab Bangladesh Bank Limited with a view to concentrate their activities in the UAE in early part of 1987 and in terms of Articles 23A and 23B of the Articles of Association of the Company and with the necessary approval of the relevant authorities, the shares held by them in the Bank were sold and transferred to Group “A” Shareholders, i.e. Bangladeshi Sponsor Shareholders.

At present the Authorized Capital and the Equity (Paid up Capital and Reserve) of the Bank are BDT. 800.00 million and BDT. 1105.32 million Respectively. The Sponsor-Shareholders hold 50% of the Share Capital; the General Public Shareholders hold 49.30% and the rest 0.70% Shares are held by the Government of the People’s Republic of Bangladesh. However, no individual sponsor share holder of AB Bank holds more then 10% of its total shares.

Since beginning, the Bank acquired confidence and trust of the public and business houses by rendering high quality services in different areas of banking operations, professional competence and employment of the state of art technology.

During the last 21 years, Arab Bangladesh Bank Limited has opened 68 Branches in different Business Centres of the country, one foreign Branch in Mumbai, India, two Representative Offices in London and Yangon, Myanmar respectively and also established a wholly owned Subsidiary Finance Company in Hong Kong in the name of AB International Finance Limited. To facilitate cross border trade and payment related services, the Bank has correspondent relationship with over 220 international banks of repute across 58 countries of the World.

Arab Bangladesh Bank Limited, the premier sector Bank of the country is making headway with a mark of sustainable growth. The overall performance indicates mark of improvement with Deposit reaching BDT. 28,130.00 million, which is precisely 14% higher than the preceding year. On the Advance side, the Bank has been able to achieve 5% increase, thereby raising a total portfolio to BDT. 19,910.00 million, which places the Bank in the top tier of private sector commercial banks of the country. On account of Foreign Trade, the Bank made a significant headway in respect of import, export and inflow of foreign exchange remittances from abroad.

Arab Bangladesh Bank Ltd started its journey on 12th April 1982. It is the first Private sector bank under joint venture with Dubai Bank of UAE incorporated in Bangladesh way back on 31st December 1981. In 1989 Dubai Bank handed over their Shares. At present 5% of the total is Govt. Share. Arab Bangladesh Bank being the first private sector bank of the country has paved the way for the economic emancipation of the country.  The Bank has improved its financial results through strategic direction over the years. The challenge of the Bank is now to consolidate its position in the market and to strengthen its achievements.

The strategies of the Bank is materialised through its people. Their participation brings the desired outcome. Especially this human factor is very delicate in the service sector, where the main business requires their participation. AB Bank always paid high attention to its human factor and tried to establish the family concept to deliver the service through team approach. HR strategy should have linked with the business strategy for future planning. In the coming years, we need to gain competitive advantage through: The quality of officers of Arab Bangladesh Bank is recognised by the market. Their foundation is solid and they are ready to face the emerging challenges.


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:
SLSectorABBL Exposure (Limit)
(Fig. in Lac Tk.)
1Agro- Business12,717.56
2Cement Power, Glass38,691.92
3Consumer Products21,855.00
4Edible Oil36,057.53
5Engineering & Construction18,106.42
6Financial Institution1,414.70
7Food & Beverage27,044.24
9Health Care3,928.62
10Printing & Packaging11,867.61
11Real Estate10,451.49
14RMG & Backward Linkage94,826.13
15Ship Breaking18,029.20
17Telecom & Computer Accessories11,479.89
 Total ( including syndicated exposure)444,585.21
 Less Syndicated Exposure51,560.29
 Total Large Loan & Project Finance portfolio without syndicated exposure3930,24.92



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.


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 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 stature for Three years. Rate of interest is 6.5% p.a. in USD.

In addition to the above, we also have Drawing Arrangements with 20 (Twenty) 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.
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 Islamic 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.


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.


Customer service:

The new MICR coded cheque book will facilitate:

  • Quick processing and faster cheque clearing time
  • Prevent cheque related fraudulent activities

In this regard, we would request you to collect the new cheque book on or before July 31, 2009.

Bangladesh Bank Clearing House will not honor existing cheque book leaves after July 31, 2009. However, you may continue to use your existing cheque books to withdraw cash over the counter or to transfer funds to another customer of AB Bank Limited at any of our branches. We would therefore request you to submit your requisition slip duly signed by you from your old cheque book for new Personalized MICR-Encoded Cheque Book at AB Bank Limited branch where you have opened your account. Personalized MICR-Encoded Cheque Book will be supplied within 3 (three) working days on receipt of your requisition.


Lost Cheque Book

What should I do if I lose my Cheque Book?

In case of Loss or destruction of any Cheque Book containing unused Cheque leaves, you will inform the Bank immediately. The written confirmation of this matter should bee sent later which should be duly acknowledged by our Bank branch.


Lost Credit / Debit Card

What should I do if I lose my lose credit /debit card?

Simply call AB Bank Ltd, Card Division. Then report the loss in writing to AB Bank Card Division or your Branch where you opened your account within 24 hours and a replacement will be ready for you within 7 working days.

AB Bank Card Division address is

  • Card Division AB Bank Limited
  • 54 Elite House (1st Floor)
  • Motijheel C/A
  • Dhaka – 1000
  • Phone: 88-02-9558510

Who can apply for a card?

If you are maintaining an account with any of the branches of ABBL, you are able to have ABBL Visa Debit Card. Only thing you need to do is, visit your branch and fill up the Application form and submit it. You will receive your card within 7 working days.

Card Activation

  • After receiving the card, sign the acknowledgement slip and send it to Card Division or any branch of ABBL or call Card Division for activation.
  • Put your signature on the signature panel at the back of your card.

Caution during making transactions

  • Please do not let your card be taken out of your sight at any merchant outlet prevent possible Misuse
  • After using your card at a merchant outlet, please ensure that the card returned to you is yours
  • Before signing the Sales Slip check at the amount charged
  • Retain your copy of the Sales Slip of all transactions until they appear in your   Card Account Statement for your future reference

PIN Maintenance

  • Destroy the PIN mailer after memorizing your PIN.
  • Do not write the PIN on the card or keep the PIN inside your wallet.
  • Change the PIN every month.

For Lost/Stolen Card

If the card is lost or stolen, simply call AB Bank’s Help Desk at 9558510. You also can re­port the loss by fax to ABBL, Card Division immediately.

Lost Debit/ Credit Card

For lost Debit / Credit Card please email to the following address: [email protected] or call our Card Division at 9558510. Your card will be replaced within 4-5 working days, and will be couriered to your mailing address you provided in your card application form.

Note: Please find Lost/ stolen Card Application Form in the “Forms Center”


Address Change

For address change in your Card please email to the following address: [email protected] or call our Card Division at 9558510. Your new address will be updated in the Card Management System.


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 cheques.


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 favor of only one individua
Name of Identification DocumentIssuing Authority
Current valid passportPassport Office
Valid driving licenseBangladesh Road Transport


Voter ID CardElection Commissioner
Armed Forces ID cardEmployer or their delegate
A Bangladeshi employer ID card bearing

the photograph and signature of the applicant

Employer or their delegate
A certificate from any local government organs such as Union Council chairman, ward commissioner etc. (In this case the certifier should attest applicant’s

photograph along with signature)

UP Chairman / Ward


  • 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.
  • 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.

Terms & Conditions:


2.7.6 Account Opening

Download Forms
Account Opening Form for Individual (Savings)
Account Opening Form for Individual (Current)
Account Opening Form for Corporate


Account Opening Document Check-List

Individual and Joint Account

  • Bank’s prescribed Account opening application form (to be signed by the applicant in front of BM/RM/CSM)
  • Two Passport Size Photograph of the Account holder(s) attested by the introducer.
  • Specimen Signature Card (To be signed by the applicant in front of BM/RM/CSM)
  • Estimated Transaction Profile and
  • Any of the following Identification Document

The idea is any document showing photograph, signature and address of the customer

Issued from a dependable authority (Managers and Supervisors have to apply judgment) are acceptable. All photocopies should be verified with the original and attested by an authorized officer of the Bank. DSEs or other contractual staffs are not allowed to verify photocopies. Particular care should be taken in accepting documents, which are easily forged, or which can be easily obtained using false identities.

Sole Proprietorship Account

  • Bank’s prescribed Account Opening application form.(to be signed by the applicant in front of BM/RM/CSM)
  • Two Passport Size Photograph of the Proprietor attested by the introducer
  • Specimen Signature Card (To be signed by the applicant in front of BM/RM/CSM).
  • Copy of valid Trade License issued by Local Government authority (City Corporation, Pourashava, Union Parishad etc.)
  • Permission from Bangladesh Bank (For Buying House, Indenting or other specific businesses)
  • TIN issued by Income Tax Authority
  • The personal identity of the proprietor of the Firm has to be established by any of the documents as mentioned in Individual or Joint Customer category. If the Trade License carries the photo and signature of the Proprietor this is not required.

 Limited Company Account

  • Bank’s prescribed Account Opening application form
  • Certified copy of the Memorandum & Articles of Association of the Company
  •  Certificate of incorporation
  • Certificate of commencement of Business (For Public Limited Companies only)
  •  Extract of the Board resolution sanctioning the account opening and signing authority
  • List of the Director with address in form – XII.
  • Photograph of the signatories
  • Copy of valid Trade Licenses
  • Introducer’s signature in the A/C opening form and at the back of the photograph(s) of Account holder(s).
  • List of names with Appointment letter and Specimen Signature of the Persons authorized to operate the Account.
  • The personal identity of all the directors or beneficial owner(s) proprietor of the Firm has to be established by any of the documents as mentioned in Individual or Joint Customer category.


Partnership Account

  • Bank’s prescribed Account Opening application form signed by the partners in front of BM/RM/CSM
  • Certified copy of Partnership Deed/ Agreement
  • List of the Partners with Address
  • Extract of resolution of the partners Meeting
  • Copy of valid Trade License
  • Photograph of the signatories/ Partner’s
  • Specimen signature card (To be signed by the signatories in front of BM/RM/CSM).
  • Introducer’s signature in the A/C opening form and at the back of the photograph(s) of Account holder(s).
  • Identity of all Partners/ Directors must be verified in line with the requirements for personal customers. Where a formal partnership agreement exists, a mandate from the partnership authorizing the opening of an account and conferring authority on those who will operate it should be obtained.
  • Evidence of the trading address of the business or partnership should be obtained and a copy of the latest report and accounts (audited where applicable).
  • An explanation of the nature of the business or partnership should be ascertained (but not necessarily verified from a partnership deed) to ensure that it has a legitimate purpose.


Address Change

Can I change my mailing / permanent address?

Yes, you can fill up bank’s prescribed address change form (available any of our branches) or you can send us in writing change of address with a copy of utility bill documents showing your new address.

Your instruction should be submitted to your Branch of AB Bank Limited where you opened your account.


Signature Change

How can I change my signature?

You can fill up bank’s prescribed signature change form (available any of our branches) or you can request of change of signature by letter with the latest copy of your Passport size photographs.

Your instruction should be submitted to your Branch of AB Bank Limited, where you opened your account.


Account Closing

How can I close my account?

  • You may close your account(s) at any time by giving notice or submit Account Closure Form (available any of our branches) to your Branch where you opened your account(s).
  • On closure of the account, the bank will pay the credit balance (if any) of the account and any interest due to your account(s). You will surrender the unused cheque book/leaves along with requisition slip, ATM Card and other materials (if any) supplied by bank for operation of the account.


AB Bank A/C to A/C Fund Transfer

Can I transfer my fund from my account to another AB account?

Of course! You can transfer your fund to another account through your request letter or you use AB cheque with cash deposit slip wherein you clearly mentioned beneficiary Account Number & Name of the customer.


Performance of ABBL:

Operating Performance Board of Directors of AB Bank Limited (ABBL) takes immense pleasure in presenting the 25th Annual Report of the Bank to you. It is also the privilege of the Board to present the audited accounts of the Bank for the year ended 31st December, 2006 and the Auditors’ Report thereon.

Your Bank reached a milestone on 12th of April, 2010 when AB reached 28 years of its journey which started with a single Branch operation at Karwan Bazar, Dhaka way back in 1982. AB being the pioneer in private sector banking in Bangladesh will be the first to achieve this milestone. Over the years, your Bank has contributed in many ways towards development of the private sector banking in the country. Many of the big industries in different fields of the economy has AB’s name attached and your Bank remains a proud development partner of these industrial houses over the years. AB thrived on customer service and relationship banking which brought new dimensions to this particular service sector and many more new entrants to banking sector followed AB.

AB’s Sponsors set a vision for the Bank which reads: “To be the Trendsetter for innovative banking with excellence and perfection”. Throughout these 28 years your Bank raised the bar for itself through services, initiatives, products, customer support and performance towards that visionary path.

At the beginning of the year 2005, Board took the mission for the year as “a year of consolidation and growth”. In line with that, year 2006 was identified to be the year of “financial re-structuring and growth”. Sponsors of the Bank remain committed to take AB into next higher level of banking on a strong financial footing and with appropriate systems and processes in place. Being a financial institution, your Bank is exposed to the entire gamut of economic developments and activities both within and outside the country. Hence to start with, we will throw some brief insights in to the economic scenario of the year 2006.

Global Economy:

World economic growth strengthened in the year 2006 as the global gross domestic product (GDP) registered a growth of 3.9 percent compared to 3.5 percent in 2005. Despite rising oil prices (that topped $75 a barrel during the course of the year), rising short-term interest rates, and a bout of volatility of financial market, the global growth accelerated in the overall. This strong global performance was driven by very rapid expansion in developing economies, which grew by 7 percent – more than twice as fast as high income countries (3.1 percent). In the overall, 38 percent of the increase in global output originated in developing countries which far exceeded these economies 22 percent share in world GDP.

Although broadly based, strong performance by China (10.4 percent growth) played a significant role in the recent expansion of developing economies which grew by 7 percent. It is of significance that excluding China and India (8.7 percent growth), developing countries grew by 5.5 percent thereby playing important roles in the global economic performance.

Fast growth of developing countries over the past five years has been fueled by low interest rates and abundant global liquidity. This has led to rising commodity prices and over-heating in some high-income and developing countries. This, in turn, has provoked a tightening of monetary policy that is in part is responsible for slowdown at the global level towards the later part of the year. However, in most countries strong productivity growth, due in part to the absorption of China and the former Eastern Block countries into the global economy, has checked inflationary pressure. In the United States, the acceleration of industrial output began at a torrid pace of 5.6 percent during the year. As a result US GDP had a positive growth in 2006. However, responding to higher short-term interest rates, spending in the housing sector declined and also had a moderating effect on the consumer demand. This resulted in the slowing down of the economy to 1.6 percent annualized growth rate in the third quarter of 2006. However, profit, foreign investment and consumption remained robust while inflation and unemployment remained low. Consequent upon all these factors, US economy is expected to grow by 3.2 percent as a whole. European economy also experienced growth in 2006 after several years of weakness. Growth accelerated in the first half of the year as GDP expanded by about 3.3 percent over that period. This is mostly driven by private consumption and increased investment spending. However, slower growth in the third quarter for France had an impact on the overall growth but the full year GDP growth in Europe is estimated to be 2.5 percent. In Japan, the GDP was estimated to have expanded by 2.9 percent in 2006. A slowdown in exports contributed to weaker growth in the second quarter of the year, but growth rebounded in the third quarter led by a surge in investment spending.

High oil prices and the rapid pace of global growth have contributed to a gradual increase in inflation among developing countries. These countries experienced rising inflation in response to higher oil prices, but it has since declined, reflecting both solid productivity growth and the impact of more credible monetary policies. In contrast, in high-income economies inflation rose to about 2.7 percent from 1.3 percent before falling towards the end of the year matching with the falling oil prices.

In the overall, limited inflationary pressures and high savings among oil exporters and in Europe are expected to keep long term interest rates low. Moreover, improved fundamentals have boosted growth rates in many developing countries. All these factors cumulatively suggest the continuation of robust economic performance in 2007 barring unanticipated reversals.
Bangladesh Economy:

Bangladesh economy continued on the growth path in 2006 and achieved a higher growth compared to the year 2005 mainly driven by a strong post-flood agriculture recovery. Growth was also fuelled by notable expansion of the manufacturing sector. Economic growth was also aided by strong growth of exports and remittances from abroad. This is a noteworthy performance in the face of rising oil price, rise in import costs and also the phase out of the Multi -Fiber Arrangement (MFA). GDP growth was registered at 6.7 percent in the year 2006.

Growth performance of the economy was led by the post-flood recovery of the agriculture sector which was 4.5 percent in 2006 compared to 2.2 percent in the year before. Strong growth in crops, horticulture and fishing were mainly responsible for such growth. At the same time, industrial sector attained 9.6 percent growth during the year which is way above the previous year’s growth of 8.3 percent. This higher growth rate was sustained through strong performances in the manufacturing arena facilitated by strong and sustained growth in export oriented manufacturing activities and expansion of domestic demands. In the overall, service sector of the economy grew by 6.5 percent. The growth was fairly spread in different sub-sectors which in turn were related to increase in industrial out put and increase in trade related activities.

Structural transformation of economy was aimed at through giving new focus on the development of the Small & Medium Enterprises (SMEs) sector. A credit line was established in the Bangladesh Bank with the support of the Asian Development Bank (ADB) and the World Bank (WB), respectively. In the year 2006, SME sector experienced sizeable growth in the field of rice mills, dairy products, knitwear, leather products, paper and paper products, light engineering, etc.

Country’s foreign exchange reserve crossed the US $ 4.0 billion mark for the first time in the history at the beginning of the year 2007. Present level of reserves covers for over three months of imports of the country. Exports and remittances from the Non-resident Bangladeshis (NRBs) continued to achieve strong growth in the year 2006 while import growth slowed down to a sustainable level. Exports grew 21.6 percent to US$ 10,422 million over the previous year. At the same time, remittances by the NRBs grew by 24.8 percent at US$ 4,802 million. While, total import was registered at US$ 13,301 million showing a growth of 12.1 percent during the year.

Export earnings achieved more than expected growth in the post MFA situation due to higher export demand in the US and the European markets. Impressive growth of 35.4 percent was achieved in the knitwear sector driven by a volume growth of 37.4 percent. Country’s export of raw Jute also experienced significant growth of 54 percent over the year 2005. More significantly, country is gradually shifting towards a diversified export base. Bangladesh has been included in the “next eleven” a group of nations having economic growth potential by Goldman Sachs.

Relative slowdown of total import was mainly attributable to the reduced import of food grains, milk products, spices and most other edible products. However, import of industrial raw materials and capital machineries increased signifying the dynamism in investment activities in the country. The commodities whose import payments, however, increased significantly include crude petroleum and POL reflecting the volatile international market for those.

The overall balance of payments recorded a significant surplus of US$ 365 million (US$67 million in 2005) at the end of the year 2006 reflecting a notable improvement in the current account balance and a larger surplus in the capital account. Despite noteworthy performance of the external sector, the foreign exchange market experienced substantial pressure in the year 2006. Pressures on Taka-US Dollar exchange rate generated by continued price hike for import of petroleum and many other major commodities coupled with higher growth of lending to the private sector (18.3 percent) created all such pressure situation. In 2006, the nominal Taka-US Dollar exchange rate depreciated by 8.6 percent in the overall. However, the real effective exchange rate of Taka depreciated by 5.3 percent providing a boost to the country’s external competitiveness.

Inflation in the economy showed upward trend in 2006. Pressures on consumer prices emerged mainly through rising import prices of fuel, food items, other consumer items and production inputs feeding into domestic prices. Depreciation of Taka further contributed to rising consumer prices. The annual average inflation increased to 7.2 percent in June, 2006.

Bangladesh Bank continued to pursue a restrained monetary policy stance with a view to curb excess demand from inflationary expectations while supporting the sustainable real GDP growth. During the year, the Cash Reserve Requirement (CRR) and the Statutory Liquidity Ratio (SLR) were raised from 4.5 and 16.0 percent respectively to 5.0 and 18.0 percent towards slowing down of the growth of domestic credit. Besides, report and reverse report interest rates and treasury bills / bond yield rates were kept at an uptrend towards slowing down the credit growth rate.

Broad money (M2) grew by 19.3 percent during the year which was much higher than 2005 growth of 16.7 percent and far exceeded the projection of 14.3 percent growth. Public sector credit grew substantially by 30.6 percent mainly to finance higher cost of imports of fuel. Total domestic credit grew by 21.1 percent, while credit to private sector grew by 18.3 percent reflecting acceleration of economic activities. The declining trend of interest rates that persisted over a period till year 2005 reversed in 2006 keeping pace with the tightened monetary policy. Country’s revenue collection scenario through the National Board of Revenue (NBR) remains much lower than the projection. Among other factors low tariff rates on many importable items, lower import volume due to political crisis were mainly responsible for such a situation.

Despite stronger growth of some macroeconomic indicators, Bangladesh economy faced some challenges originating from price hike of oil, some imported commodities in the international market causing fluctuations in real sector and foreign exchange market. As a result, the financial market was volatile during the year. The call money market was also volatile for a period of time due to increase of Government borrowing from the banking system for financing higher priced imports. Till December 2006, Government borrowing stood at Taka 63.50 billion. Due to such a development, banks and financial institutions were forced to mobilize deposit at a higher rate resulting in higher pricing on credit and forcing restrains, at times.


Overall Banking Sector:

Financial sector reforms to strengthen the regulatory and supervisory framework for banks made headway in 2006 although at a slower than expected pace. Overall health of the banking system showed improvement since 2002 as the gross Non-performing Loans (NPL) declined from 28 percent to 14 percent while net NPL (less Provision) reduced to 8 percent from 21 percent. This led significant improvement in the profitability ratios. Although the Private Commercial Banks (PCB) NPL ratio registered a record low of 6 percent, the four Nationalized Commercial Banks (NCB) position are still weak and showed very high NPL at 25 percent. The NCBs have large capital shortfalls with a risk-weighted capital asset ratio of just 0.5 percent (June 2006) as against the required 9 percent. For the PCBs risk-weighted capital asset ratio stood at 10 percent.

Bangladesh Bank issued a good number of prudential guidelines during the year 2006 and the first quarter of 2007 which among others relate to (I) rationalization of prudential norms for loan classification and provisioning, (ii) policy for rescheduling of loans, (iii) designing and enforcing an “integrated credit risk grading manual”, (iv) credit rating of the banks, and (v) revisions to the make-up of Tier-2 capital.

Besides, recent decision of the Government to corporative the remaining three NCBs along with the initiative to sale the Rupali Bank are bound to usher in changes in the banking sector competitiveness aspect. Bangladesh Bank has also taken up the task of implementing the Basel II capital accord. Further, the recent enactment of the Micro-credit Regulatory Authority Act (MRAA) for the regulation of the Micro Finance Institutions (MFI) has been a major development in the year 2006.

Since 1998 CAMEL rating of banks gradually improved and in 2006 Bangladesh Bank updated this rating model by incorporating the market risk and the new model is known as CAMELS.

Capital Market:

Bangladesh capital market is still quite small in terms of size compared to countries like India or Pakistan. Present market capitalization accounts for roughly 6 percent of the GDP. During the first half of the year 2006, liquidity crises had its affect in the market and towards the end of the year, the market had to weather unstable and volatile political situation. Besides, relatively higher rates on Government and bank saving instruments were challenging factors towards expansion of investment in the capital market. Yet, the market showed remarkable stability in the face of the above. Market capitalization registered a rapid growth of over 38 percent which was fuelled by entry of 13 new companies and flow of stock dividends, rights shares among others. At the end of the year DSE general price index stood at 1609.51 and the all shares price index closed at 1321.39 while CSE general price index stood at 2432.51 and the all shares price index closed at 3724.39.

Future for the capital market looks bright as government is planning to off-load profitable state owned enterprises. Moreover, enlistment of telecommunication and inclusion of various companies under oil and gas sector will contribute towards increasing the size of the market.

Economic outlook:

The 6 percent plus growth of GDP over the past four years has been underpinned by more market-oriented economic policies, a dynamic garment sector, and substantial inflow of overseas workers’ remittances. The lead-up to the parliamentary election was generally expected to be rough ride for the country as a whole and the economy in particular. However, deepening political deadlock culminated with the declaration of state of emergency in January. The new caretaker Government continued with the established economic policies and expedited structure and sector reforms. It has taken a broad agenda of activity, including an extensive anti-corruption drive that it sees necessary to establish better foundations for the future besides establishing the atmosphere for a truly democratic system to unfurl in the future.

Economic forecasts for the fiscal year 2007-8 are based on several policy assumptions towards preserving the macroeconomic stability and ensuring GDP growth of around 7 percent. However, some of the significant challenges include increased competition, high interest rate environment, rising inflationary pressure, sustained high global oil price, power shortage etc. The economy has started to come back on track after months of political instability which at times had the risk of irretrievable consequences. With the economic course outlined in the budget for 2007-8, Bangladesh should be able to drive full steam towards the desired growth.

New MICR Cheque Book AB Bank has started Issuance of new cheque book from June 01, 2009 as per Bangladesh Bank guideline. You can conveniently collect new cheque book from your Account Opening Officer of your AB Bank branch. As per Bangladesh Bank instruction we have implemented MICR coded cheque book from June 6, 2009, which will be customized by the Bank. MICR is a process of printing cheques using magnetic ink and special fonts to create machine-readable information. It is the first step towards electronic cheque clearing process.

Prime Achievements of AB Bank:

At present Arab Bangladesh Bank Ltd is the market leader in the private banking arena of Bangladesh. The company began its journey as a partnership firm way back in 1958. It took them four years (1962) to launch the first compressed tablet. Within two years (1964) the turnover of the company rose to Tk one million. In the same year management took the decision to convert the company into private limited company. With the zeal and commitment to grow, the company slowly expanded its business. In 1974 they struck an agreement for technical collaboration with Janssen Pharmaceuticals of Belgium, a subsidiary of Johnson & Johnson International U.S.A. The company management did not feel any complacency and went forward to prove its ability to become the market leader of the pharmaceuticals era.

The company went into another deal with F. Hoffmann La Roche of Switzerland, one of the largest pharmaceuticals companies in the world. It was also an agreement for technical collaboration. The year 1985 was a memorable year for Arab Bangladesh Bank Ltd because during that period it became the market leader of the country. The very next year (1986) it began exporting. It is worthwhile mentioning Arab Bangladesh Bank Ltd is the first company to export pharmaceuticals products. To meet up the growing demand it expanded its production capacity and set up a new factory in 1987. The management took a major decision to convert the company into public limited company in 1991.  In 1992 Square’s turnover crossed Taka 1 billion and it started manufacturing bulk pharmaceuticals in 1995.

Square signed another agreement with a renowned UK company to design and commission a new US FDA and UK MCA standard formulation plant in 1996. In 1998 it held a firm footstep in global export market and achieved ISO-9001 certificate. Square Pharma always lays emphasis on human resources development. In its efforts for human resource development in all spheres of its activities the company offered various courses of training. The company conducted in-house training courses of different duration for upgrading skill of officers/staffs during 2002.


Findings & Analysis:

HRM objectives of AB Bank:

The objectives of HRM in AB bank can be described as follows:

  • Hire the right person for the job
  • Reduce the employee turnover
  • Motive employees to perform at high effort levels 52
  • Not to waste time with useless interviews
  • Remove unfair labor practices
  • Maintain a high moral and better human relations inside the organization
  • Maintain organizational peace
  • Attract competent employees and retain them in the bank
  • Recognize and satisfy individual needs.

AB Banks HR strategy is aimed at ensuring sustainable growth in business steady and stable value creation for our customers, shareholders, employees and the society. This corporate objective can only be achieved by consistently delivering exceptional standard of performance in business through effective use and retention of human talents. AB believes that human resources do make a difference in creating competitive advantage in business. HR highlights of 2008:

  • Employee who completed 25years with AB bank were recognized and rewarded.
  • Employees children who did brilliant results in public examinations were rewarded.
  • Roll out of revised organ gram designed to cater to needs of future business expansion
  • Performance wise incentive bonus was awarded to the employee for achieving business target and for future motivation in profit maximization with quality of business.


Internal Control and Compliance

An effective internal control is a critical component of bank management and a foundation for the safe and sound operations of banking organizations. Well devised internal controls can help to ensure that the goals and objectives of a bank are being met; and that the bank will achieve long term profitability targets and maintain reliable financial reporting. This also helps to ensure that the bank is compliant with laws and regulations as well as policies, plans, internal rules and procedures, which helps to minimize the risk of unexpected losses or damage to the bank’s reputation. 53 AB bank has established Internal Control Policies and Procedures with a view to assist the senior management and the board of directors in efficient and effective discharge of responsibilities. Internal Control and Compliances Policy of AB is based on independence, impartiality, professional competence among others. Internal Control and Compliance is viewed from a cultural perspective and towards this end emphasis is given on Policy, Process, and People development to ensure transparency, ethical standard and good governance.

Risk Management

Risk management in AB is viewed from a cultural perspective. In compatible with the corporate strategy of growth and shareholders value addition, risk management has been structured in line with the organizational pattern of the Bank. Bank may be exposed to risk in the form of credit, market, liquidity and operations risk. However, there is another dimension to risk matrix namely reputation risk. Risk management system of the Bank is geared to addressing financial and operational losses besides being compliant on regulatory aspects. Managements of risks involve a process through which business deals/initiatives are taken with the ultimate objective of safeguarding the capital and protecting the flow of profit generation and growth financing. The bank has put in place platforms for addressing the risk paradox. Board and its Committees – Executive Committee and Audit Committee work in tandem with the Credit Committee, Asset Liability Committee, Management Committee and the Internal Control & Compliance Division in this respect.


Steps of HR planning followed by AB bank:

AB bank follows several steps of the HR planning. These are:

  1. Integrate HR planning with corporate planning:

The first stage of HR planning is to integrate it with corporate planning. In AB bank all manpower planning stems from business plan in relation to a corporate strategy.

  1. Forecasting internal & external environment:

The second stage in HR planning followed by AB bank is to forecast of asses the internal & external environmental factors that affect demand & supply of labor. Environmental factors include govt. influences economic, graphic & competitive condition.

  1. Assessment of internal HR capabilities:

In this stage AB bank analyze the internal inventory of HR capabilities. Assessments of internal strengths & weaknesses as a part of HR planning requires the current job & employees capabilities are audited & organizational capabilities are inventoried.

  1. Predicting & forecasting HR demand & supply:

The information gathered from external environmental scanning & assessment of internal strengths & weaknesses is used to predict of forecast HR supply & demand in the light of AB banks objective & strategies.

5. To locate the required HR:

Once the demand for HR has been forecasted, then their availability must be identified. In this stage HR planning locate the source from where personnel required will be available. The source may be internal or external.

6. Allocation of HR:

This is the final stage of HR planning. This is concerned with allocation of human resources within an organization over time.


Recruitment & Selection process of AB Bank:

Concept of recruitment & selection:

Recruitment is the process of discovering potential candidates for actual or anticipated organizational vacancies. Recruitment is the process of finding qualified people & encouraging them to apply for work with the organization. On the other hand, selection is the process of choosing among those who do apply. To outline the standards that are expected of new recruits to the Bank, and the processes that will be followed during recruitment and selection. The foundation for this policy is that recruitment should only occur when there is a specific business need to be met i.e. vacant post and that the selection of the appropriate candidate will be on the basis of qualification, performance, potential and aptitude.

Recruiting System

In AB bank normally recruitment is done internally. They hire people from internal sources. The upper level posts are fulfilled by the immediate subordinates. and the lower level employees are recruited from the relatives, friends or known persons of the present employees. Sometimes the bank also gives advertisements in newspapers or on internet. But this advertisement is given for the recruitment of lower & mid level employees. In upper level the gaps are always fulfilled by the internal employees.


Recruitment System of AB Bank

1.      External Vacancy advertisement placed (if necessary)
2.      Need identified in accordance with Area operating plan
3.      Candidates short-listed according to job Criteria Match
4.      Candidates undertake ability tests
5.      Candidates undertake customer service questionnaire
6.      Candidates are interviewed by Human Resource Panel
7.       Candidates are offered a position dependent on satisfactory
8.       References and medical examinations
9.      Candidate is appointed to probationary staff
10.  Candidate is appraised during the probationary period
11.  Candidate is appointed to the permanent staff


After the recruitment the applicants have to sit for a written test. Then who qualify in the written test is called for next step. Next step is a viva. There is a viva board in front of whom the candidates will give their viva. Then from the viva the viva board will select the person/ persons they want to hire. But in some cases the candidates have to give their fitness examination after they are qualified in viva. Normally this is done in the selection of lower level employees. Then after all the examinations the suitable person / persons are to be selected as employee/ employees of the bank.



AB’s training academy started operations from October 2008. The bank views the Training Academy as a strategic business link in business growth. The Academy will organize training and development programs all round the year for employees of the bank to familiarize and equip them in various areas like General Banking, Credit Management, Foreign Exchange and Foreign trade, Anti-Money Laundering etc. A total number of 1411 officials from the Bank participated in different training programs, workshops and seminars locally and abroad during 2008. AB Bank training academy organized in-house local training programs for1125 Officials of the Bank related to different functional areas of Banking while 196 officials were imparted training in Bangladesh Bank Training Academy, Bangladesh Institute of Bank Management and other institutions.


Performance Appraisal system of AB Bank

Performance appraisal is the process by which organizations evaluate individual job performance. When it is done correctly, employees, their supervisors, the HR department, and ultimately the organization benefit by ensuring that individual efforts contribute to the strategic focus of the organization. However performance appraisals are influenced by other activities in the organization & in turn affect the organization’s success. The performance measurement tools used by the HR department of AB bank are given below:


Promotions are given every year normally 3year duration from last promotion, based on performance. Manager suggests the employee who he thinks is suitable for promotion. The employees who can mobilize deposits and help in gaining profit in the prior position.


Normally transfers occur after 3years of an employee in one branch. It happens based on the employee’s performance. If an employee is very efficient and needed in a branch then he is transferred there. This is decided by HRD.


The bank maintains fair and competitive remuneration packages based on business needs and competitor practices. A compensation and benefit survey is conducted on a regular basis, which involves the bank obtaining salary information form other foreign banks in Bangladesh such as Standard Chartered, American Express. The compensation package includes a competitive salary, and progressive benefits, all designed to influence and reward personal achievement.


Salary is as stated in the appointed letter. However, any changes will be notified in writing. Upon satisfactory completion of the probation period a basic monthly salary increment of 10% will be awarded. Furthermore, employee’s salary will be reviewed on an annual basis in April according to his/her performance and may be adjusted at the discretion of Bank.

Salary Payments:

Monthly salary will be credited into staff account, which he/she opens upon joining the Bank. Salaries are paid on 25th of each month in arrears, plus other allowances less deductions such as Income Tax, contribution to Provident Fund etc. Each employee will receive a monthly pay statement detailing gross pay and deductions.


Various allowances are paid in the Bank such as Housing Rent, Conveyance, Leave, Tiffin, and Medical.


The Bank awards bonuses in addition to basic salaries for occasions such as Eid, as Festival bonuses. It gives two bonuses in a year. The bonuses are equal to the basic salary. Sometimes the bank gives bonuses to the employees according to their performance. This performance is calculated of a branch as a whole. If any branches do better then all of its employees are rewarded with a bonus.

HR department of AB bank uses the information gathered through performance appraisals to evaluate the success of recruitment, selection, orientation, placement, training, and other activities.


Employee benefits

The bank reserves the right to vary the rules of employee benefits from time to time.

Provident Fund & Gratuity:

The Staff Provident Fund Scheme is a voluntary contribution scheme. The employee will be entitled to join the scheme upon completion of the probation period. The employee will be entitled to benefit from the scheme after completion of five years service & payment will be made upon resignation, termination, and retirement. The employee will also be entitled to a gratuity payment equal to one month’s basic salary for each year of service after five years upon his/ her resignation, retirement.


Married employees will be entitled to a medical allowance for their respective grade for their spouse & children up to the age of 19. Single employees are entitled to half of the medical allowance for their respective rank. In both cases medical expenses incurred will only be reimbursed when supported by approved medical vouchers.

Employee Loans:

The employee Loan policy has been established at preferential rates to provide financial assistance to qualified & deserving employees of the bank. The bank’s policy shall be reviewed periodically. Employees will be eligible for the banks subsidized Housing Loan scheme. Car loan & sundry loan Schemes upon satisfactorily completing the required number of years service & achievement of performance standards. Separate policies are available for employee reference & guidance from HR/ADMIN department. Applications for loans should be sent to HRC through respective Head of departments. The CEO shall approve loan applications.

Employee Group Insurance:

The bank provides all permanent & contract employees with insurance via the Workmen’s compensation policy.


A member of Staff will be required to serve any of the Bank’s offices in Bangladesh or subsidiary/associated companies of the bank. The bank reserves the right to transfer employees as the business dictates. Employees therefore will, from time to time, be required to be transferred to other departments & branches if opened in the future. Such transfers will help employees obtain a balance experience of banking operations & develop/broaden their experience base.


Compensation of employees:

Compensation of employees (CE) is a statistical term used in national accounts, balance of payments statistics and sometimes in corporate accounts as well. It refers basically to the total gross (pre-tax) wages paid by employers to employees for work done in an accounting period, such as a quarter or a year.

However, in reality, the aggregate includes more than just gross wages, at least in national accounts and balance of payments statistics. The reason is that in these accounts, CE is defined as “the total remuneration, in cash or in kind, payable by an enterprise to an employee in return for work done by the latter during the accounting period”. It represents effectively a total labor cost to an employer, paid from the gross revenues or the capital of an enterprise.

Compensation of employees is accounted for on an accrual basis; i.e., it is measured by the value of the remuneration in cash or in kind which an employee becomes entitled to receive from an employer in respect of work done, during the relevant accounting period – whether paid in advance, simultaneously, or in arrears of the work itself. This contrasts with other inputs to production, which are to be valued at the point when they are actually used.

For statistical purposes, the relationship of employer to employee exists, when there is an agreement, formal or informal, between an enterprise and a person, normally entered into voluntarily by both parties, whereby the person works for the enterprise, in return for remuneration in cash or in kind. The remuneration is normally based on either the time spent at work, or some other objective indicator of the amount of work done.

For social accounting purposes, CE is considered as a component of the value of net output or value added (as factor income). The aim is not to measure income actually received by workers, but the value which labour contributes to net output along with other factors of production. The underlying idea is that the value of net output equals the factor incomes that it generates. For this reason, some types of remuneration received by employees are either included or excluded, because they are regarded as either related or unrelated to production or to the value of new output.

In different countries, what is actually included and excluded in CE may differ somewhat. The reason is that the way in which workers are compensated for their labor may be somewhat different in different types of economies. For example, in some countries workers get substantial payments “in kind”, in others they don’t. Systems of social insurance also differ between countries, and some countries have little social insurance. One has to keep this in mind when comparing CE magnitudes for different countries.

A compensation system has to be aligned to the mission, vision, business strategy and organizational structure of a company to design the compensation plan in an efficient way to can achieve the goals. A general compensation plan consists of three components: a base compensation, rewarding incentives, and indirect compensation in form of benefits.


SWOT Analysis of Human Resources Division of ABBL


Open HR Manual: The Human Resources Manual of ABBL limited is open for all of its entire employees giving total understanding of the terms and condition of the organization to its entire employees to assist the benefits and growth they can ever achieve and the role of Human Resources Department with all other departments/divisions of the organization. This HR manual is uploaded in the internal website of ABBL.

Empowered Work Force: The Human Resource of ABBL is exactly well thought and perfectly managed. As from the very first, top management beloved in empowered employees, where they refused to put their finger in every part of the pie. These employees are not suffocated with authority but are able to grow as the organization matures.

Strong Bonding and Belongingness: ABBL employees are one of the major assets. The employees of ABBL have a strong sense of commitment towards organization and also feel proud and a sense of belonging towards ABBL. This strong organizational culture of ABBL is a main strength of the organization.

Information Technology: Online banking, e-mail and personal computer for all employees enabled the employees work easier and faster with full of professionalism. All kinds of benefits, salaries, monetary rewards are directly given to employees’ bank account through flex cube.

Different Staff Loans: There is a set of staff loans in ABBL which increases the employees’ satisfaction in terms of monetary benefits enabled them to work more stress free and put dedication.

Employee Evaluation: Employee evaluation process by Human Resources Division became strength for its fair judgment and put trust among the employees of other department on Human Resources Department.

Centralized Banking: Centralized banking means the core function of business coordinated by the head office gives an immense effect for reducing the internal conflicts among the branches and the Head office.



Job Description: Job description is a necessary accomplishment should have for each position for recruiting the most suitable candidate on the basis of skill and experience required. Still hundred percent job description is not prepared or collected by the HR Division.

HR Accounting: Human Resources Accounting is a strong tool for matching the benefits of each new recruitment done in the organization, calculation turnover, etc. Human Resources Division of ABBL has not yet established this practice.

Compensation and Benefits: Compensation and benefits of ABBL’s employees are provided by the Human Resources Division through two different software’s named EZHR and flex cube. Both of that software are not flexible to use and have lot of limitations.



Management Information System: In recent business practices the importance of MIS is unavoidable. Human Resources Department is not out of it. HRD of ABBL has every potential capability to establish new MIS and use it in various manpower reporting.

Human Resources Information System: Human Resources Information System is must for a corporate environment like ABBL. ABBL is going to establish a new HRIS very soon.

Research and Development: Though ABBL has almost all due capabilities to command extensive research and development activities, ABBL done a little in this area.

Salary Survey: ABBL is going to start its salary survey with the most reputed consultant of Bangladesh for its salary survey.

Training and Learning: Training and learning is the core function for making the executives cope with the new scenario and make them update and knowledgeable. ABBL is going to utilize its fullest capacity and enthusiasm in this regards by establishing a library, arranging extensive element etc. very soon.



Competitive Salary and Turnover: The salary package of ABBL is not as competitive as the market demands, so the turnover of manpower is increasing day by day.

New/Multinational Companies/Bank Policy: New multinational companies and bank policy as threat to ABBL in respect of increasing the salary expectation of the employees and new HR practices that turning the existing employees dissatisfied.

Bangladesh Bank Regulation/Legislation: The regulation and legislation of Bangladesh bank is randomly changing the scenario of the human resources policy and scope suddenly.



  1. Identical Human Resource Policy: There should be a unique HR policy in the organization immediately; through the recognition of HR policy is under progress supervised by the Manager and the Head of HR.
  1. Human Resource Development: There should be all kinds of development activities as individual, career and organizational by the Human Resource Department for enhancing the employees’ growth as well as for achieving organizational hierarchy.
  1. Training Need Assessment: ABBL has all the potential capabilities to make its employees more efficient and future leaders. Training is a common practice for the employees of any bank. This training should be organized by the Human Resource Department only through need assessments. It can be examined through the performance evaluation process by which HRD will determine where he/she should have some more exposure.
  1. Performance Appraisal System: The existing appraisal system can be changed or modified and new system could be developed which will articulate the accurate picture. The criteria of evaluation should cover more competencies of an employee. The system could cover criteria as individual, social along with the core business competencies. The result can be used for training need assessment and help taking proper development initiatives.
  1. Linkage among Other Division: A department like HRD cannot perform in isolation where Human Resource Department is in the core of all other department with the responsibilities of maximizing the employees’ benefits as well as achieving organizational objectives. For better services, HRD must establish a proper linkage with the other functional departments.
  1. Reward and Recognition: Only higher salary package cannot satisfy a self motivated and exposed employee in higher level. The employee wants recognition and reward for their self actualization. There are few reward and recognition options available in ABBL. ABBL should review for deals with employee turnover. The workforce should be structured and the standard functional designation should be in act.



AB Bank Limited, the pioneer private Bank of the country has created a sense of mass participation through its diversified activities over the last 27 years. Their numbers of client’s service recovers and supporters have been increased rapidly. For its diversified banking service, it has got a wide range of publicity and created a special image in the banking area in the country. ABBL has stared making profit from 1985 still now.

The report is aimed at the Human Resource Division. AB Bank Limited operating in the market with the ambition of becoming the Bank of choice for its clients and all its stakeholders. It is just natural for ABBL to pitch its customer service benchmarks high, at a level where the local standard is far exceeded and global standard are met.

ABBL is committed to focus all its energy on its customer as well as its employees. This is sure a strong Human Recourse practices will help ABBL to pave the way leading to outmost destination. Human Resources Division in ABBL is under massive reconstruction program which ensure will the future benefits and high corporate culture and the secured place of contribution and dedication the experience and the exposure of high professionalism.