SME Banking Scope In Bangladesh (Part-6)

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 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.

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

Money Transfer

Foreign Remittance through Exchange House

Islami 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, Ulema, 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

AB Investment Limited (ABIL)

AB Investment Limited, a subsidiary of AB Bank Limited incorporated under the Companies Act 1994 and running its Merchant Banking operations being licensed by the Securities and Exchange Commission.

ABIL’s Head Office is located at WW Tower (Level-7), 68, Motijheel C/A, Dhaka-1000. ABIL has two branch offices at Agrabad, Chittagong and Chowhatta, Sylhet.

Custodial Service

Customers:
Investors who are interested to invest in the Bangladesh Capital Market
• Non Resident Bangladeshi (NRBs)
• Foreign Institutional and individual clients
• Local Institutions
• Sponsors’ group and High net worth client

Services:

 •Safe custody of client securities

• Foreign Trade Execution and Settlement

• Share transfer in the name of client
• Complete the Dematerialization process as per client request
• IPO, Private Placement & Right share subscription as per client instruction
• All types of corporate action that includes cash dividend, bonus share and right share collection
• Open BO account and facilitate opening of Trading Account
• Instant information regarding client securities position as per their request
• Quarterly reporting to the client by Custodial Department

Account Opening Procedure

• Criteria for opening an account:
  • The non-resident investor shall open a NITA(Non-resident investors’ taka account) with any commercial bank in Bangladesh, with freely convertible foreign currency remitted from abroad through normal banking channel or by transfer of funds from the non-resident investor’s foreign currency account, if any, in Bangladesh;
  • Any two Bangladeshi national and Non Resident Bangladeshi of sound mind having a minimum age of 18 years may open two accounts on each in their single name and the other in their joint names.
  • Account opening absolutely depends upon the management of AB Bank Ltd.
  • Proper documents should be submitted at the time of account opening.
  • Foreign investor has to open FC account along with NITA account at the time of custodial account opening.

Account opening formalities

Foreign Currency Account & Non-resident Taka Account (NITA) Opening:

• Duly signed account opening form
• Submit Name, signature and photograph of the Nominee
• Transaction profile
• Signature of an introducer must be incorporated
• Supporting Documents:
  • Copy of the passport
  • Bank statement/ Work permit (in case of NRB)

Custodial Account Opening:

• Duly Signed account opening form of Custodial
• Duly signed custodial agreement (must be signed on all pages)
• Duly signed Power of Attorney (POA) in non-judicial stamp of Tk. 150/-
• Supporting Documents:
  • Copy of the passport
  • Bank statement/ Work permit (in case of NRB)

Beneficiary Owner (BO) Account Opening:

• Duly signed BO account opening form
• Duly signed BO agreement (must be signed on all pages)

Brokerage Account Opening:

• Duly signed account opening form with AB Securities Limited
• Nomination Form duly signed
• Agreement with AB Securities Limited
• Supporting Documents:
• Copy of the passport
• Bank statement/ Work permit (in case of NRB)

Brokerage Service

Introduction:
AB Securities Limited (ABSL) is a subsidiary company of AB Bank Limited having holding 99.60% shares of the ABSL. Earlier, AB Bank Limited provided stock broking services through Arab Bangladesh Bank Foundation (ABBF) since 2006. Incompliance with Bangladesh Bank’s directives, AB Bank Limited formed separate subsidiary company under Company Act 1994 in name of AB Securities Limited (ABSL) and shifted its stock broking services from ABBF to ABSL. ABSL started its new journey on 2nd August, 2010 with improved customer service, highly skilled professionals and state of art technologies. Memberships of both Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited has been transferred in name of ABSL to provide more efficient and professional broking services to the capital market investors.

Services of ABSL:

AB Securities Limited (ABSL) is one of the country’s leading securities broker houses of Dhaka Stock Exchange (member # 201) and Chittagong Stock Exchange (member # 101). ABSL has started its operation on 2nd August 2010. We have already started our operation in full swing through our corporate head office and Chittagong Branch Office and Chowhatta (Sylhet) Branch Office. We are planning to establish nationwide branch network as well as step into international arena.

Services:

1. Brokerage Services: AB Bank’s subsidiary, AB Securities Limited, 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.

We provide broking services under following categories:
a) Individual & Joint Account (Local, NRB & Foreign)
b) Institution Investment Account (Local and Foreign)

2. Margin Loan Facilities: We also provide margin loan facility to our valued clients as per desecration of management of ABSL.
3. Stock Dealer Service: ABSL also has the stock dealer license to manage own portfolio as well as can manage reputed institution’s portfolio accounts.
4. CDBL Services as full service Depository Participant (DP): As a full service depository participant, ABSL provides following services:
   a) BO (Beneficial Owner) accounts opening and maintenance.
   b) Dematerialization & c) Rematerialization
   c) Freeze (freeze request and release request) and suspensions
   d) Pledging, unpledging and confiscation
   e) BO ISIN balances and master maintenance enquiry

Future Products

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

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

AB Bank Visa Electron Debit Card

“The most perfect accompaniment to life”

   Makes your life comfortable
Smart way of payment
No need to carry cash
Large ATM and POS network
lower annual fees
No hidden charge

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.

Tips for usage

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 to 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: cardsteam@abbank.com.bdor 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: cardsteam@abbank.com.bdor call our Card Division at 9558510. Your new address will be updated in the Card Management System.

Note: Please find Card address change Application Form in the “Forms Center”

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 cheques.

Eligibility:

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

Nomination for Safe Deposit Locker:

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

Terms & Conditions:

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

Schedule of Charges & Commissions

Schedule of Charges & Commissions

General

This guide is intended to give you a clear picture of the fees that we charge for your outmost commonly used services. We hope that the simple tables as stated in this guide will help you manage your money more effectively. If you have any queries about the charges listed in the guide, kindly visit or contact any of our Branch Offices for the exact details or seek your own professional help.

N. B.

1.VAT is applicable @15% on all fees and commissions effective from 1^st July 2002, as per Government circular no. SRO 117-Law/ 2002/342-VAT, dated 6 June 2002 and SRO#171-Law/2004/ 417-VAT dated June 10, 2004.

2.VAT is not applicable for Commission, Fees or Charges for back to back LC against Master LC, Local back to back LC and Export related all LC’s including Cash LC.

3.Any  Government  Taxes,  Duties  or  other  charges  will be  recovered  in addition to the foregoing and as per Government Regulations.

4.  Stamp charges are levied where applicable.

5.Correspondent/Other Bank charges, if any, will be additionally recovered from customers.

6.The Bank reserves the right to assess charges on transaction which are not covered  by  this  schedule  and  to  amend  without  prior  notice the terms, conditions or rate stated in this schedule.

7.Any service, which is not mentioned above, will be charged separately as per the charges.

8.If the Bank provides services to its clients at reduced rate to encourage their clients, VAT to be collected as per Standard Charge i.e. as per Schedule of Charges.

More parts of this post-

SME Banking Scope In Bangladesh.(Part-1)

SME Banking Scope In Bangladesh.(Part-2)

SME Banking Scope In Bangladesh (Part-3)

SME Banking Scope In Bangladesh (Part-4)

SME Banking Scope In Bangladesh (Part-5)

SME Banking Scope In Bangladesh (Part-6)

SME Banking Scope In Bangladesh (Part-7)

SME Banking Scope In Bangladesh (Part-8)

SME Banking Scope In Bangladesh (Part-9)