Marketing Analysis of Product of AB Bank Limited

Marketing Analysis of Product of AB Bank Limited

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Marketing Analysis of Product of AB Bank Limited

Banking sector is expanding its hand in different financial events every day. At the same time the banking process s becoming faster, easier and the banking arena is becoming wider. As the demand for better service increases day by day. Generally by the word “Bank” we can easily understand that the financial institution deals with money. But there are different types of banks like; Central Bank, Commercial Bank, Savings Bank, Investment Bank, Industrial Bank, Co-operative Bank etc. Here I am going to discuss a bank which name is AB Bank, which is a commercial bank.

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.

Dubai Bank Limited (name subsequently changed to Union Bank of the Middle-east Limited) decided to off-load their investment in AB 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.



Research is a systematic inquiry whose objective is to provide information to solve a particular problem. Good research generates dependable data, being derived by practices that are conducted professionally and that can be used reliably for decision making about problem. Here I made my research on AB Bank Limited (ABBL), Dhanmondi Branch, which is the biggest branch of ABBL. I conducted that research to gather the information about the general banking activity of ABBL and which will help me to solve those problem which I was found during my research time.

Research Type

Research could be tow type they are:-

  1. Quantitative: – When we work with the numerical data we defined it as the quantitative research.
  2. Qualitative: – But when we work with the data those are not numerical but descriptive than it will known as the qualitative analysis.

Actually my research was based on the qualitative judgments of ABBL. But when I analyze the performance of the ABBL I made the quantitative judgment.

Sample Design

A sample is a part of the target population, carefully selected to represent that population. My target population was the every employees of the ABBL but it was not possible to work with them all, that’s why I chose the employee of the ABBL Dhanmondi Branch as a sample to conduct my research.

Survey Method

Basically I made my survey by the face to face interview with the in-charge of different department and also the responsible officer of those departments. And another most important and the primary source to collect necessary data was the observation method. Here I did different type of work by my own which help me to get a clear concept about the work here done.  I also made a questioner, on the basis of which I asked question to the employee and answer of those question helped me to find out the problems in different department and the customer demand to the bank. The questioner is following

Q: – What are the problems you face in your department?

  1. Infrastructural
  2. Manpower

Q: – Are your customer satisfied with your service?

  1. Yes
  2. No
  3. Complain sometime

Q: – How could you improve your service?

  1. By recruiting new manpower
  2. By arranging a training program for existing employee

Q: – Are you happy with salary and other benefit

  1. Yes
  2. No
  3. Meet minimum level
  4. No-comment

Q: – Are you satisfied with the work environment?

  1. Co-operative
  2. No

Q: – Are the client suggest for the online service?

  1. Yes
  2. No

Q: – Do you think online will improve work efficiency?

  1. Yes
  2. No
  3. May Be

Q: – How could ABBL Attract Customer?

  1. By launching new product
  2. By improving service
  3. By launching automation
  4. By proper marketing

Q: – What is the main driving force of the ABBL?

  1. Customer loyalty
  2. Modern Banking System
  3. Quick service
  4. Proper marketing

Q: – Do you think bank should offer more interest on its deposit especially on FDR? If yes how much?

  1. No
  2. Yeas
    • More than any existing bank
    • Same to existing bank

Q: – What do you think about the customer loyalty to the bank, ABBL is in which position?

  1. Less
  2. Almost Same
  3. Batter than any Bank
  4. Same to leading banks



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.

Dubai Bank Limited (name subsequently changed to Union Bank of the Middle-east Limited) decided to off-load their investment in AB 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, AB Bank Limited has opened 68 Branches in different Business Centers 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.

AB 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 Should uses a communication solution or communication offered by the telecommunication company. That will increase their communication efficiency and it will reduce the cost of communication because the private telecommunication companies offer the cheapest price than they offer to the individual customer

Future plan

To exceed customer expectations, the management likes to turn this bank into a world-class bank so that all banking related services could be provided efficiently and effectively. Automation will play a vital role. All the branches will come under one network so that customers will enjoy the banking services. Corporate clients will be provided banking services at their doorsteps. Mobile ATM services will be introduced so that customers can be served in any corner of the cities. This service will help to ease the tension of carrying large quantity of money during the salary period. Phone banking and internet banking will allow the customers to withdraw and transfer money at any time. More specifically the bank will provide the following:

  • Electronic Fund transfer
  • Electronic L/Cs
  • Mobile ATM service
  • Utility bill payment through ATM cards
  • One stop service
  • Corporate banking
  • Real time banking




Operating Profit of the Bank more than doubled during the year 2005 and taka 755.04 million which was the combined effect of 35% growth in Net Interest income and appropriate expenditure control measures among others. Bank excelled in its margin management in a fiercely competitive market. Bottom line was further bolstered by 11%increase in Non-funded income for the year although investment income reduced by 22% compared to 2004. Profit before tax also doubled at Taka 407.47 million. Earning per share (EPS) stood at taka 31.26 while return on equity (ROE) and Return on assets (ROA) were 10.64 and 0.50% respectively.


Total deposits at the end of the year 2005 stood at 27361.43 million showing slight reduction compared to 2004. Bank continued to maintain its low coast deposit mix while feeding the growing funding needs related to increase in loans and advances at the same time.

Loans and Advances

Loans and Advances registered a significant growth of 25.73% over last year and stood at taka 21384.63 million. Bank’s portfolio remained well diversified with presence in Cement, Food & Beverages, Ship Breaking, Textile and Garment, Power etc. During the year, all the sectors to its operation registered growth and among them the industrial sector credit grew by 84% while infrastructure sector credit registered growth of 45% respectively.

International Trade

International trade business of the ABBL registered all-round growth in them year 2005. Bank maintained the growth through strengthening of trade finance spectrum by providing various services like issuance of Document Credit, Advising of Export L/C’s, purchase and negotiation of export bills, Documentary Collection, Pre-Shipment Finance, Remittance Disbursement Activities etc. Export growth was 24.70% as the volume rose to taka 12595 million in year 2005. Major contributors were Garment and Frozen fish sectors.

Import in the year 2005 was taka 23151 million marking an increase of 20.16% over the previous year. Major imports were in the category f capital machinery, industrial raw material, milk powder, scrap vessels etc.

ABBL remittance business reached a high note in 2005 as we crossed US $ 100 million and ended with the figure of US $ 115.41 million registering an overall growth of 38.27 %. Providing fast and efficient service and our coverage to reach the doorsteps remained the corner stone of our business. Bank is looking forward to expand its network and catchments capacity dedicated to the service of expatriate Bangladesh.


Merchant Banking Wing

Ever since its launch in 2003 this particular business wing registered tremendous growth both in terms income and profitability. MBW offers various schmes like Portfolio Management, Issue Management, Corporate Advisory and Underwriting. During the year 2005 MBW achieved Net Profit worth taka 137.83 million registering a growth of 64% over the last year.

Bringing an idea into life and benefiting the community, as a whole is what progress, development, and prosperity are all about. We here at AB Bank, believe that the spirit of the entrepreneur is what drives the wheel of progress and development. We know that the key to national development is the growth of your financial assets in the capital market. As your savings grow, so does the nation. We here at AB Bank, the nation’s first private bank with more than 20 years of know- how, have been working relentlessly at the forefront of wealth-creation through our commercial banking operations.

Islamic Banking

The Islamic Banking of ABBL was launched at the end of the year 2004. Throughout the year 2005, considerable efforts were put-in to complete the platform for launching the business in a meaningful way. Sharia Council of the Bank was formed comprising of Ulemas, Faqih, Islamic Banker and also nominees from the ABBL board. The Bye-Laws for the Sharia Council has also been finalized. Sharia Council also approved different products for the business.

Meantime, we have started operating tough collection of Deposit and extending credits in limited way. Till the end of the year, Deposit worth taka 56.8 million was collected through Al-Wadiah (current account) and Mudaraba (savings and term deposit scheme). Besides, advances worth taka 15.1 million where extended to different clients.

Card Division

ABBL is the first domestic commercial bank in Bangladesh to introduce Visa Electron and Visa Credit Card ant the same time. ABBL also the only Bank in Bangladesh to introduce Visa ATM Acquirer along with POS Acquirer, which opened the opportunity for all the Visa Cardholder (domestic and international) to use our ATMs. Recently ABBL have opened an ATM booth in Cox’s Bazar thereby further extending network of ATMs, POS< and Q-Cash ATMs outlets which extended ABBL reach to as far as Munshiganj, Sirajganj, Khulna and Bogra.

Business Automation

“Misys” the core banking solution are being implemented gradually. During the year 2005, seven Branches of the Dhaka Region were upgraded with the new Misys solution there heralding the era of new phase of automation in your Bank. ABBL are now into the Second Phase of Misys implementation whereby six more branches of the Chittagong region is came under the coverage from beginning of the June 2006. By the end of 2006, all the Branches will be hooked to this core system along with the implementation of a whole range of banking solutions. We have embarked on massive project of migration, connectivity and standardization of processes and hardwires throughout the Bank. A CORE TEAM would drive this Project to its destined objective.



Return on Equity (ROE)

Return on Equity (ROE) is the ratio of a bank’s net after-tax income divided by its total equity capital. Return on Equity (ROE) is a measure of the rate of return flowing to the bank’s shareholders. It approximates the net benefit that the stockholders have received from investing their capital in the bank that means placing their funds at risk in the hope of earning a suitable profit.

Return on Assets (ROA)

Return on Assets is the ratio of a Bank’s net after-tax income divided by its total assets. Thus ROA is primarily an indicator of managerial efficiency; it indicates how capably the management of the bank has been converting the institution’s assets into net earnings.

Net Interest Margin

The Net Interest Margin is efficiency measures as well as profitability measures, including how well management and staff have been able to keep the growth of revenues (which come primarily from the bank’s loans, investments, and service fees) ahead of rising costs (principally the interest on deposits and money market borrowings and employee salaries and benefits). The net interest margin measures how large a spread between interest revenues and interest costs management has been able to achieve by close control over the bank’s earnings asses and the pursuit of the cheapest sources of funding.

Net Non-Interest Margin

The non-interest margin, I contrast, measures the amount of non-interest revenues stemming from deposit service changes and other service fees the bank has been able to collect (called fee income) relative to the amount of non-interest costs incurred (including salaries and wages, repair and maintenance costs on bank facilities, and loan-loss expenses). For most banks, the non-interest margin is negative: non-interest costs generally outstrip fee income; through bank fee income has been rising rapidly in recent years as a percentage of all revenues.

Earning Per Share

Earning per share is the ratio of bank’s net – income after tax divided by the total common equity share outstanding which means how much profit will get the shareholder on their owned share. Earning per share is the main indicator of an organization’s wealth. If the EPS is increasing year by year then we can say that the organization is doing well.

Net Profit Margin

The Net Profit Margin (NPM), or the ration of the net income to total revenues, is subject to some degree of management control and direction. It reflects the effectiveness of expense management (cost control) and service pricing policies. It reminds us that banks can increase their earnings and their return to their stockholders by successfully controlling expenses and maximizing revenues.

Assets Utilization (AU)

Assets Utilization (AU) ratio is the product of Total Operating Income divided by the Total Assets that means how much income bank generate by using a single unite of assets. This ratio reflects portfolio management policies, especially the mix and yield on the bank’s assets. By carefully allocating the bank’s assets to the highest-yielding loans and investments while avoiding excessive risk, management can raise the bank’s average yield on its assets.

Equity Multiplier

The Equity Multiplier (EM), or assets-to-equity-capital ratio, is normally the largest, averaging about 15* or larger for most bank. The biggest banks in the industry often operate with multipliers of 20* or more. The multiplier is a direct measure of the bank’s degrees of financial leverage–how many portion of assets must be supported by each amount of equity capital and how much of the bank’s resources therefore must rest on debt. Because equity must absorb losses on the bank’s assets, the larger the multiplier, the more exposed to failure risk the bank is. However, the larger the multiplier, the greater the bank’s potential for high returns for it’s stockholders.

Tax Management Efficiency

Tax Management Efficiency ratio reflects the bank’s use security gains or losses and other tax-management tools (like buying tax-exempted bonds) to minimize its tax exposure.

Expenses Management Efficiency

Expenses Management Efficiency ratio is the ratio to before-tax income to total revenue as an indicator of how many Taka of revenue survives after operating expenses are removed expense management efficiency measurement is a measure of operating efficiency and expenses control.

Assets Management Efficiency

Assets Management Efficiency ratio is the product of Total Operating Income divided by the Total Assets that means how much income bank generate by using a single unite of assets. This ratio reflects portfolio management policies, especially the mix and yield on the bank’s assets. By carefully allocating the bank’s assets t the highest-yielding loans and investments while avoiding excessive risk, management can raise the bank’s average yield on its assets.

Asset management efficiency is same as the asset utilization. Asset management efficiency shows that how efficiently the bank uses their assets to generate revenue. In above graph we see that ABBL develop their Asset management efficiency by a contentious basis. Which reveal their strong management team, who made the careful and the effective decision about portfolio investment and by avoiding risk as much as possible.

Fund Management Efficiency

The Fund Management Efficiency, or assets-to-equity-capital ratio, or Equity Multiplier is normally the largest, averaging about 15* or larger for most bank. The biggest banks in the industry often operate with multipliers of 20* or more. The multiplier is a direct measure of the bank’s degrees of financial leverage–how many portion of assets must be supported by each amount of equity capital and how much of the bank’s resources therefore must rest on debt. Because equity must absorb losses on the bank’s assets, the larger the multiplier, the more exposed to failure risk the bank is. However, the larger the multiplier, the greater the bank’s potential for high returns for it’s stockholders.

The fund management ratio is same to the Equity Multiplier ratio; the multiplier ratio tells us that the higher the multiplier is higher the income and also it lead high risk of bank’s failure. In the above graph we see that the multiplier is decreasing by the time which means that the risk of ABBL is decreasing by the time but the income to the shareholder also decreasing by the time.

By analyzing the performance of ABBL we see that this bank really doing well last two years. In year 2004 their net profit margin was 6.17% and year 2005 it become 10.30% which shows their strong management efficiency and the strong control over the operating expenses. Now a day’s people want batter product and service at reasonable price. And AB Bank provides that batter product and service at reasonable price which attract more customer loyalty. The ultimate goal of a business organization is to maximize their wealth not the profit, and the indicator of wealth maximization is increase in share price. In case of AB we see that in year 2004 the Earning per Share was 18.19 and in year 2005 it become 31.26 it was almost doubled as compare to the previous year. That influences the investor to invest their money in the AB Bank Limited share because the return on those shares will increase year by year. Existence of an organization depends upon mainly two things one is, Are they generate sufficient amount of profit and another things is the loyalty of customer and the investor regarding that organization. Here we see that the profit of AB Bank Limited become almost doubled in year 2005 than the previous year and the investor will more attractive when they see that the return on share also become doubled in last year. So we can say that, AB Bank Limited has good enough potentials in the money market of Bangladesh.


Corporate Banking

At AB Bank we provide complete range of solutions to meet Corporate Customers’ requirement. Our Corporate Banking solutions include a broad spectrum of products and services backed by proven, modern technologies.
Corporate Lending

Our specialist teams offer a comprehensive service providing finance to large and medium-sized businesses based in Bangladesh. For more information as to how we might best meet your corporate debt needs, please contact us at our Corporate Head Office.
Structured Finance

We have a specialist Structured Finance Team who arrange and underwrite finance solutions including Debt and Equity Syndication for financial sponsors, management teams and corporates. Also we provide corporate advisory services.
We aim to provide tailored financing solutions with a dedicated team who can rapidly respond to client needs.
Following are some of the products and financial tools of Corporate Banking:

  • Project Finance
  • Working Capital Finance
  • Trade Finance
  • Cash Management
  • Syndicated Finance, both onshore & off-shore
  • Equity Finance, both onshore & off-shore
  • Corporate Advisory Services

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.

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.

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.

Investment Banking

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

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

• 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

Brokerage Service

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.


  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.

  1. 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


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‘ 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.

Safe Deposit Locker

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.


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.


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.



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.


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


  • ABBL still not in online operation
  • ABBL does not have sufficient amount of ATM booth


  • Huge Number of depositor


  • 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.


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.


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.


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.


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.