Chapter 5

Overall HRM Practices of Agrani Bank Limited

[Link]

[Link]

Julius, M. J., & Schlender, W. E. (1962). Management in Perspective. Academy of Management

Journal, 5(2), 179-184.

5.1 Introduction

5.2 Human Resource Practice in Agrani Bank Limited

5.3 Human Resource Planning

5.4 Recruitment

5.4.1 Recruiting Goal

5.4.2 Recruiting Source

5.5 Selection

5.6 Orientation

5.6.1 Process of orientation

5.6.2 Purpose of Orientation:

5.6.3 Organization Practice:

5.7 Compensation and Benefits

5.7.1 Components of compensation:

5.8 Leave Facilities
5.9 Training and Development

5.9.1 About EBTRA:

5.9.2 Status, Objectives and functions:

5.9.3 Motto of EBTRA:

5.9.4 Training:

5.9.5 Workshop:

5.9.6 Development:

5.9.7 Program Conducted by EBTRA:

5.9.8 EBTRA Administration:

5.9.9 Different Training conducted by EBTRA:

5.9.10 Participation at different training institute & academy:

5.10 Performance Appraisal

5.10.1 Evaluating absolute standards: Evaluating absolute standards involves the

following methods:

5.10.2 Performance Appraisal (PA) of EXIM Bank

5.10.3 Submission of PA by appraise:

5.10.4 Evaluation by Reporting Officer

5.10.5 Questionnaire of PA:

5.10.6 Overall performance rating:

5.11Rewards:

5.12 Termination:
5.1 Introduction

"Human resource management" (HRM) outlines the philosophy, rules, and methods for
handling organizational personnel matters. Decenzo and Robbins state that "Human Resource
Management is concerned with the people dimension" in management. As people form the basis
of every organization, obtaining their services, honing their skills, inspiring them to greater
performance levels, and ensuring they remain committed to the organization are crucial to
achieving organizational objectives. It does not matter what kind of organization it is —
government, business, education, health, or social action — this is true.

Humans have been around since ancient times, but only recently have they ought to be officially
recognized as resourceful beings. With human resources, an establishment is worthwhile. The
"people" component of management is an area of concern for the human resources division.
Since every organization comprises people, obtaining their services, honing their abilities, and
inspiring them to high-performance levels are crucial to achieving organizational objectives and
guaranteeing that they continue to be dedicated to the organization.

The evolution of HRM can be characterized as occurring in four stages: the crafting system, the
scientific management system, the human resource relationship procedure, and the current
managerial science, especially human resource proximity. Intending to increase productivity, the
company views human resources as a crucial component of corporate management. Based on
high-quality education, training, and work experience, the company has a specific policy for
organizing, keeping, and maintaining its current human resources.

To ensure the successful and efficient utilization of human talent to achieve corporate objectives,
HRM is the design of an established framework in the workplace. Recruiting, socializing,
motivating, retaining, and motivating employees is accomplished through a network of related
policies, practices, and programs. Every manager has to deal with HRM. These fundamental
HRM tasks are all carried out by managers.
5.2 Human Resource Practice in Agrani Bank Limited

Despite all advancements in technology and knowledge, human resources remain the most
critical factor in any organization's success. In a fiercely competitive financial market like
Bangladesh, ABL assumes that an ensemble of proficient human resources personnel is the key
to attaining outstanding performance. According to the Bank's management, the team of
dedicated, knowledgeable, enthusiastic employees at Agrani Bank Limited generates the Bank
continually do well. "Human resources are, therefore, the most valuable asset for the Bank,"
claims the HR professionals who work in the HR Division. The Bank is dedicated to securing top
talent and ensuring they acquire the drive, instruction, setting, and reimbursement required to
operate at peak efficiency. They know how crucial it is to position the Bank as an employer of
choice. With that end in mind, they ensure the staff members are conscious of the Bank's
strategic goals and objectives and their respective roles in these schemes. The Bank emphasizes
high standards of ethics in its recruitment efforts. It has created a complete HR manual and
service regulations encompassing the standards for hiring, criteria for promotions, training, and
other relevant topics. The HR manual and service rules are reviewed and updated to keep pace
with modern times and uphold employees' stake in the Bank's success. Their performance is
evaluated using a rating system against goals and the core values set forth by the Bank.

Transparency and an unwavering commitment to excellence are the cornerstones of ABL's HRD.

Functions of HRM
5.3 Human Resource Planning
To achieve objectives, an organization needs
qualified people in particular positions at particular
locations and times. Planning for human resources
carefully evaluates human resources needs to
ensure sufficient employees with the appropriate
abilities on hand.

E.W. Vetter (1967) defined human resource

planning as "the process by which a management
determines how an organization should make from
its current manpower position to its desired manpower position." Planning aims to have the
appropriate mix of people in the right places at the correct times to carry out tasks that will
benefit the organization and the individual most significant long-term benefits.

HRP is a method used by a bank to ensure a steady flow of qualified workers while preventing
employee surpluses or shortages. A company's productivity and profitability can increase with a
strong HRP strategy. It is possible for ABL to strategically achieve goals and be prepared for
upcoming challenges by identifying its skill set and focusing on the skills it needs. HRP
frequently considers organizational design, employee motivation, succession planning, and
raising the return on investment to keep workers and stay competitive. Planning for human
resources must change as a company's objectives and tactics do over time.

With the aid of human resource planning (HRP), a company can identify and hire the best talent
with the necessary technical and soft skills to maximize their contribution to the business.
Furthermore, it enables managers to provide the workforce with better training and support for
learning the necessary skills.
5.4 Recruitment

The Bangladeshi government owns Agrani Bank. As a consequence of this, the hiring procedure
is seriously influenced by the Bangladesh Central Bank. It is Bangladesh Bank's accountability to
oversee the hiring process. Bangladesh Bank then sends newly hired employees to each
government bank's request.

The company's effective operation would be aided by carefully chosen and strategically placed
employees, who also offer significant potential for replacement in the future. At this point in the
picture, recruitment happens. The HR department applies recruitment as a strategic tool. A
formal definition stipulates, "It is the procedure of finding and attracting suitable applicants for
job placement. When recruits are sought after, the process begins and is completed when
applications are turned in. An applicant pool from which new hires are chosen is the result.

According to Plumbley, "Recruitment is a matching process, and the capacities and inclination of
the candidates have to be matched against the demands and rewards inherent in a given job or
career pattern."

5.4.1 Recruitment method

When seeking new hires, Agrani Bank LTD combines formal and informal strategies. Newspaper
advertisements are frequently used in legal hiring to find entry-level employees. The posting
outlines the precise requirements for hiring. They also hired highly qualified medical
professionals in other instances.

Similar to other banks, this one takes a casual approach. Consideration is given to cashiers,
junior officers, and different positions that demand high expertise. Additionally, they look for
middle management personnel with prior experience and a successful track record. Additionally,
top talent has been hired on a contract basis.

Internal Source: Agrani Bank Limited frequently looks within regarding hiring. The company's
management must seek out and select workers accustomed to the company's culture.
High-level management may endorse Agrani Bank Limited's achievements from internal sources
in the following ways:

 Employee Transfer
 Promotion of Current Employees
 Employee Recommendation
 Additional Assignments

External Source: Even so, Agrani Bank Limited does employ outside candidates. The external
places' sources are listed below:

 Universities
 Internships
 Rival Businesses
 Web pages

5.4.1 Recruitment process

The process of formal external recruitment involves searching the job market for candidates who
have a connection to the company. These strategies have also, in the past involved newspaper
advertising, hiring firms' use of hiring agencies, and university recruitment. The practice of
advertising job openings online, whether on a company website or a for-profit job board, has
become more and more common in recent years. For a long time, newspaper ads were the most
common employment advertising. It is Bangladesh Bank's responsibility to handle the hiring
process. Following that, Bangladesh Bank provides hired personnel for any need a government
bank may have.

During the hiring process, Bangladesh Bank uses the procedure listed below:

Advertising: Bangladesh Bank publishes job postings in its official newspaper and website. An
announcement regarding the number of openings at Agrani Bank Ltd. and the application
requirements can be found in a newspaper.

Bangladesh Bank uses various other techniques to publicize this job opening, including-

 Website advertisements: BD [Link], [Link], and [Link].

 Social media: LinkedIn and Facebook portals.
 Media: TV channels and newspapers
Application submission: Applications must be submitted after a position has been advertised.
The individual's name, home address, and contact information are required. Additionally, a copy
of their resume should be sent to the provided address.

Written exam: The written test for hiring combines elaborative and multiple-choice questions.
Typically, Agrani Bank Ltd assigns this to another organization. The specific organization carries
out the entire process. A person must achieve a particular score to pass the written portion of the
exam.

Viva: After passing the written test to advance, the candidate must take the VIVA test. Typically,
VIVA is consumed by the bank's top management. The final selection for the position is made
from only the shortlisted candidates. Candidates for a job may be interviewed by HRM
interviewers, senior managers of ABL, potential supervisors, and potential coworkers.

Others: Once a list of candidates has been established, additional background checks on each
candidate must be done. Bangladesh Bank looks into the histories of those who have been
shortlisted. There are many ways to accomplish this, including getting in touch with the
candidate's former employers to confirm their employment history and get their assessment of
the candidate's performance, getting in touch with other professional and personal references,
checking the source of authority and criminal history, or even using the third-party investigation
to conduct the background check.

Before being considered for a position, applicants must also complete a medical or physical
examination to show that they are physically and mentally fit.

Job offer: Despite their performance, candidates who made it via the initial phases are now
qualified for the job offer. The HRPD division of Agrani Bank Limited created this offer letter.

5.5 Selection

Selecting personnel to fill specific positions within an organization is known as selection. This
procedure usually entails reading through applications or resumes, interviewing potential hires,
and reaching a decision. Selection is crucial to human resources because it enables businesses to
select the top candidates for open positions.
Selection conveys an additional weight for any organization because it influences the efficiency
of the organization, expenditures related to recruitment and selection, and statutory
responsibilities. Agrani Bank Limited admits the worth of careful selection and uses a systematic
selection procedure for all employee types, though the procedure varies depending on the
position.

According to Thomas H. Stone, "Selection is the process of differentiating between applicants to

identify (and hire) those with a greater likelihood of success in a job." A decision is made during
the selection process. A series of steps are involved in the ABL selection process, which
applicants must complete. For instance, a candidate who fails to meet the requirements for one
step cannot take the next step. Every action's outcome is significant. The candidate can
only attempt the next step if any effort fails to be completed.

The bank should adhere to a proper selection process, given the financial commitment to finding
the ideal candidate. Labor turnover and absenteeism are bad situations for any organization.
These issues will worsen, and the organization's effectiveness will only improve if the candidates
are appropriately chosen. Additionally, training and induction programs are also expensive.
Making the wrong choice could cost the employer a lot of time, money, and effort.

Process of selection

The initial screening interview is the first step in the selection process, and the final employment
decision follows.

Initial Screening: Due to our recruitment efforts, the organization should be ready to start a
preliminary review of potential acceptable candidates. This initial screening is a two-step process
that involves conducting screening interviews and screening inquiries.

Completion of the Application Form: After the preliminary screening is complicated,

applicants are asked to make the organization's application form complicated. Only the
applicant's name, address, phone number, and other information may be needed.

Employment tests: Intelligence, aptitude, ability, and interest tests have traditionally played an
integral part in organizations' selection processes.
The comprehensive interview: A senior manager, a potential supervisor, a potential boss,
potential coworkers, or some combination of these may interview the applicant.

Background investigation: Investigating candidates who make good employees is the next step.
The following can involve-

 getting in touch with the applicant's previous employers to confirm their employment
history and get their assessment of their performance,
 getting in touch with other professional and personal references,
 demonstrating the academic achievements listed on the application,
 checking credit references and criminal records, and
 They are even using third-party investigations to conduct background checks.

Method of selection: Correlation and regression are two statistical strategies of selection. The
correlation assessed measures a relationship between variables' strength and direction.
Regression, however, uses the connection to forecast scores on one variable from scores on
several additional variables.

Physical/ Medical Examination: Physical tests are only practical as a screening tool to weed
out candidates who are physically unable to perform the duties of a position.

Conditional job offers: A conditional job offer is typically made when a candidate has "passed"
all previous rounds of the selection process. An HRM is corresponding usually provides
conditional job offers. A conditional job offer implies that if everything goes "as planned"—
passing a specific physical, drug, or alcohol test—the request will become permanent, and the
job will be accepted.

Job offer: People who complete the previous steps are now considered legitimate to receive the
job offer.

Organizational practices: Agrani Bank Ltd. recruits staff members both formally and
informally. Entry-level employees have typically been hired formally through newspaper
advertisements. The advertisement explicitly mentions hiring criteria. However, they
occasionally hired skilled individuals at the medium and top levels.
In the case of this bank, the informal approach is also reliable. The educational background of
entry-level employees, such as cashiers, junior officers, Etc., is considered in this situation.
Additionally, they hire mid-level candidates with experience and a solid track record. Contract-
based hiring has also been used to find top-level employees.

5.6 Socialization or Orientation in Agrani Bank Ltd.

HR encompasses much more than just hiring new employees. As soon as the selection procedure
wraps up, an enthusiastic human resources department aids the new employee in becoming
effective and content. Being an effective and satisfied employee is essential for both the
organization and the employee. This initial turnover is anticipated.

New hires frequently inquire, "Will I be able to do the job? Can I blend in? Will my boss approve
of me? " Employees are more likely to leave during the first few months of employment than at
any other time. The orientation program acquaints new hires with their responsibilities and the
company. It also aids in their adjustment to their new workplaces and job duties.

Adaptation is taking place. Anxiety plagues brand-new employees. New hires are seeking to
mitigate the initially high state of anxiety swiftly. Stress is high because the new member lacks
identification. Being lonely and having a sense of isolation are common reactions. Special care
must be taken to reassure brand-new workers. In order to lessen challenges and discrepancies, it
entails providing adequate data. Personnel departments can lower turnover rates through this
initiative. Helping employees achieve their individual goals can lower turnover. Turnover has a
very high cost. It costs money to find, train, and develop new employees.

Short, informal introductions to extensive, structured courses are all included in orientation
programs. New hires typically receive a handbook or printed materials covering topics like
working hours, performance reviews, joining the payroll, vacations, and facility tours. Employee
benefits, personnel policies, daily schedules, organizational structure, and safety procedures
are other topics covered in handbooks.

During the orientation, an HR specialist typically provides information about working hours and
vacations, followed by an introduction to the new supervisor. The orientation continues with a
letter that explains the job in detail, introduces the new employee to colleagues, and familiarizes
them with the workplace. The goal is to ease first-day nerves and help the new employee feel
"More comfortable," which can be improved for better clarity.

5.7 Compensation and Benefits

When we talk about compensation, we refer to how much a person gets paid for their work.
Compensation originates from the Latin term "compensation," which refers to the payment or
remuneration provided in exchange for labor or service. R.S. Schuler defines compensation as
how organizations assess their employees' contributions and offer them financial and non-
financial incentives based on affordability and government regulations.

A yearly salary and an employee's work hours may be used to determine their compensation. In
some cases, added benefits such as insurance, vacation time, or stock options may also be
included, which could impact an employee's performance. If a company has a sound
compensation management system in place, it can help employees perform better and feel more
engaged in their work. This system must be transparent and applied to everyone in the company
to be effective. It can also help managers make better decisions about how to compensate
individual employees, which can help them identify areas where they can improve and prepare
for future opportunities.

Compensation may take the form of financial or non-financial rewards. It encompasses monetary
and non-monetary remuneration, such as bonuses, profit sharing, overtime pay, recognition
rewards, sales commissions, company-paid cars, stock options, and company-paid housing.

Figure 1: Types of compensation

5.7.1 Classification of Compensation
Direct Compensation: Employees may receive direct compensation as compensation for their
time and effort. It is direct because no mediator gets it to the worker. In direct compensation,
there are two types of compensation. They are:

 Pay: Consists of the wages and salaries received for work done. Options include basic
payment and incentive compensation based on work productivity.
 Incentives: Even though they are not given directly to employees, Benefits are provided
to them through indirect remuneration. This type of compensation includes piece-rate
salary, fees, bonuses, revenue-sharing, and stock options.

Indirect Compensation: Although it does not go directly to the employees, indirect

compensation is offered for their benefit. Indirect compensation includes two types of payment:

 Benefits are additional payments made on top of pay. They include:

 Compensation for time not worked, including paid holidays and vacations
 Protection Programs: Insurance, Pension, and Gratuities, Etc.
 Executive perks include free telephone service and newspapers.
 Service and prerequisites: They significantly reduce or eliminate employee costs while
increasing employee well-being. They are:
 Transportation, housing, food
 Loans for child and education costs
 Purchase discounts and credit cards
 Participation in social and cultural activities; club dues.

5.7.2 Compensation as Component of Human Recourses Management

A critical component of compensation management is establishing the most affordable

compensation structure that will draw in qualified candidates, keep them on board, and inspire
them to work harder. It must also be viewed favorably by employees.

 Job Descriptions: Systems of selection and compensation are dependent on it. Job
descriptions detail all duties, conditions, operations, functions, geography, environment,
circumstances, and other aspects of the job. One can create job descriptions for specific
positions or entire job groups.
  Job Analysis: creating job descriptions through the analysis of jobs. Techniques for job
analysis include observation, surveys, and interviews.
 Job Evaluation: comparing jobs to find appropriate pay scales for particular jobs or
components.
 Pay Structures: It helps standardize payment methods. Most pay structures have a
variety of grades. Every grade has a starting salary, wage, grade ranges, or step
increments.
 Salary Surveys: It is a compilation of salary and market data, and it might contain
average salaries, inflation indicators, cost of living hands, and salary budget averages.
Companies can either buy the results of salary surveys conducted by third-party survey
vendors or run their own.

Compensation Management System of Agrani Bank Limited

Agrani Bank relies on this structure. An employee's compensation package includes their
wage/salary, bonuses, benefits (both monetary and non-monetary), and other incentives. This is
shown in the diagram below:

\
Remuneration
package of an
employee
Figure 2: Remuneration Systems of Agrani Bank Limited

Non-monetary
Wage/salary Incentives Fringe benefits Perquisites
benefiters

Wages and Salary: When we talk about compensation, we refer to the hourly pay rates that
employees receive. On the other hand, pay refers to the monthly pay rate, but it does not consider
how often the employee works. Compensation and pay vary depending on the employee's
seniority, merit, and job description. In addition to financial compensation, workers may receive
non-financial benefits, payment incentives, and fringe benefits, which total 51. At ABL,
employees are paid monthly, and their pay is deposited into their accounts within the first week
of the month.

Incentives: Payments, also called incentives, are made in addition to wages and salaries. At
ABL, employee incentives are determined by productivity, profit, sales, and cost-cutting
initiatives.

Fringe benefits: This kind of financial benefit is occasionally provided to Employees. As well as
a provident fund, medical attention, gratuities, hospitalization payments, health and group
insurance, and uniforms, Agrani Bank offers its employees a host of benefits.

Perquisites: Management positions are eligible for unique benefits. The objective is to retain
talented executives. Examples of perks include a company car for business trips, club
membership, paid vacations, and a furnished home or place to stay.

Non-monetary benefits: Additionally, financial advantages, this benefit gives workers a sense
of fulfilment. It helps to energize staff in a new way. Include job sharing, flexible scheduling,
comfortable working conditions, competent supervision, challenging job responsibilities, and
recognition of merit through a certificate.

Salary and Benefits Structure of Agrani Bank Limited

I cannot go into detail because banking documents are highly private. Still, after speaking with
one of the ABL DGMs and reviewing their annual report, I have estimated their pay structure as
follows:

Salary and Benefits

Designation
Basic House Medical Conveyance Bonus
(Taka) Rent Allowance
General Manager 61250 45-55% 700tk 150tk Two festival
bonuses
Deputy General Manager 56750 45-55% 700tk 150tk Two festival
bonuses
Assistant General 53500 45-55% 700tk 150tk Two festival
 Manager bonuses
Senior Principal Officer 50000 45-55% 700tk 150tk Two festival
bonuses
Principal Officer 38750 45-55% 700tk 150tk Two festival
bonuses
Senior Officer 35000 45-55% 700tk 150tk Two festival
bonuses
Officer 28500 45-55% 700tk 150tk Two festival
bonuses

Table 1: Salary and Benefits structure of Agrani Bank Limited

7.8.2 Salary Statement of Agrani Bank Employees

This is the salary statement that has been published in the Annual report of ABL, 2020. From this
table we can have an idea about their distribution of Compensation.

Salary & Allowance Taka

Salaries- Officers 4,091,398,100
Salaries- Staff 344,097,836
Dearness Allowance (Officers & Staff) 82,009
Fringe Benefit (Officer & Staff) 121,157,301
Bonus (Officers & Staff) 667,797,985
Banks Contribution to Provident Fund 54,555,768
Banks Contribution to Employees Pension 2,992,835,380
Fund
Banks Contribution to Gratuity Fund 4,359,630
Conveyance Allowances 3,374,235
Entertainment Allowances 1,989,293
Children Education Allowances 49,372,977
Hill Allowances 2,389,839
Honorarium & Fees 30,129,118
Medical Expenses 738,468
Medical Expenses (Consultation Fees) 1,524,600
Medical Allowances 194,202,291
Uniform and Other Apparels 7,113,973
Overtime Expenses 12,743,254

Compensatory Allowances 263,400

Lunch Subsidy/Iftar Coupon 455,344,911

Leave Encashment 1,944,635

Sports and Cultural Activities 2,403,759

House Rent Allowances (Officers) 1,640,397,416

House Rent Allowances (Staff) 140,223,857

Wages Paid to Temporary Employees 323,906,632

Death Relief Grant Scheme -

Staff Transport Fare 34,996,827

Police & Ansar Expenses 505,706,709

Ex-Gratia 330,085

Evening, Night & Charge Allowance 6,715,875

Salary and Allowance of Head of ICC 1,720,000

Bangla Nobobarso Allowance 66,074,389

Salary & Allow-Executive (Contractual) 9,527,670

Covid-19 Spl. Motivational Allowances (50,812)

Total 11,769,367,410

Table 7.2: Salary Statement of Agrani Bank Employees (Source: Annual report of Agrani Bank
Limited-2021)
7.8.3 Pay

[Link] Base Pay: Salary is the money paid to an employee in exchange for the employment that
he or she has done for the firm for a particular time frame, such as a day, week, or month. It is
the monetary compensation an employee receives from his or her employer for providing
services. The Basic Salary Ranges (BSRs) are decided by the Board on the Managing Director's
proposal and it is commensurate with the job grades. Every two or three years, the Board
evaluates the BSR.

[Link] Annual Increment:

The Competent Authority will grant a salary increment if the employee's service records and
Annual Confidential Report (ACR) are satisfactory. The ratio of increment salary increase is not
set; it is determined by the Competent Authority.

The provision of annual increment at ABL, which varies depending on performance and
designation. It serves as a motivator for employees to achieve high levels of performance. As a
result, each employee does all possible to ensure that their base compensation follows a well-
defined pattern. The following is the rate of the annual increment:

Job Position Rate of increment

Officer to PO 5%
SPO 4%
AGM to DGM 3%
GM 2.5%
Table 7.3 Rate of Annual Increment

[Link] Honorarium/ Cash award: The Board may award an honorarium or cash reward to any
of its officers or employees for work that is rare in nature, innovative, or research and
development oriented, and merits special consideration; provided, however, that no honorarium
or cash reward shall be awarded unless it is prescribed by a committee constituted for that
purpose. Agrani Bank hasn’t considered this type of award for all employees yet.

7.8.4 INCENTIVES

After achieving a target or goal, they offer their staff incentive allowances. The incentive
allowance is approved by the board personnel and compensation committee.

[Link] Profit sharing: Generally, The Agrani Bank shares the profit with each employee of the
bank on the basis of its respectable profit. If a reasonable profit is achieved as per as the target,
the bank authorities pay 3 times or 3.25 times or 3.50 times or 4 times of their basic salary as
“Incentive Bonus” to all the permanent officers and employees employed there.

In some cases, if the bank is not able to make a respectable profit, then according to the decision
of the bank authorities, all the permanent officers and employees employed there get 1 times or
1.25 times or 1.5 times of their basic salary as "Gracious Allowance".

Point to be noted that if a departmental case is pending against an officer or employee for
breach of discipline, he will be deprived of the above benefits. According to the judgment of the
departmental case, as per the decision of the authority, the said employee can get all the benefits
deprived during the trial period in one time full or partial refund or not at all.

[Link] Provident Fund: For all regular confirmed workers, Agrani Bank Limited contribute 5%
to 25% of their basic salary to the provident fund to their staff. Maximum 13% profit will be
received for this fund. On retirement or resignation from service, every member of this fund is
given a lump sum payment according to the fund's specified guidelines.
7.8.5 Defined Contribution plan:

1) General Provident Fund(GPF):

The corporation is obligated by legislation of Bangladesh to contribute to the General Provident

Fund ("GPF"). In the year in which the contributions are made, they are recorded as an expense
on the income statement.

Officers and employees covered under the General Provident Fund facility will form a personal
fund by deducting minimum 5% and maximum 25% of their monthly basic salary.

The bank authorities will pay a compounding interest rate of 11% to 13% on the amount
deposited in the said fund.

At the end of the service, all officers and employees will receive a one-time refund with interest
on all money deposited in the General Provident Fund.

According to the new guidelines, in the 2021-22 financial year, the initial rate of GPF will be up
to Tk 15 lakh and the profit rate will be 13 percent. The profit rate from Tk 15 lakh to Tk 30 lakh
has fixed at 12 percent. If the initial GPF is more than Tk 30 lakh, the profit rate will be 11
percent.

2) Contributory Provident Fund (CPF)

All the officers and employees under the Contributory Provident Fund form a personal fund by
deducting minimum 3% and maximum 8% of their monthly basic salary and the bank authorities
pay compound interest of 11% to 13% on the deposits of that fund.
 In addition, the bank authority deposits 10% of their basic salary to all the officers and
employees under the Contributory Provident Fund. However, no profit is paid above 10% of the
basic salary paid by the bank authority.

At the end of the service, all officers and employees will receive a one-time refund on all money
deposited in the Contributory Provident Fund as like as General Provident Fund.

[Link] Overtime Allowance: The Bank may grant overtime allowance to personnel as
determined by the Board from time to time, at such rates and under such conditions as it deems
suitable but this is applicable only for principal branch.

(Indirect Compensation)

7.9 Benefits

Mandatory protection programs, pay for time not worked, voluntary protection programs, private
retirement plans, and a variety of additional services are all included in the benefits package.

7.10 Service and Perquisites:

7.10.1 House building loan: Every officer of Agrani Bank gets that amount of taka at simple
interest rate at the bank rate for their housing loan. The amount of housebuilding loan is
approved by the central authority and it depends on the designation of the bank
employees. The amount of loan allocation according to job position is shown in the table
below:
Job Position Loan Allocation (BDT)

Officer 80 lacs

Senior Officer to Principal Officer 95 lacs

Senior Principal Officer to General Manager 1 crore

Table 7.6: Allocation of house building amount
7.10.2 House Rent Allowance: Employees may be paid a house rent allowance at the rate and
this is set under the circumstances specified by the Board from time to time. This service
benefit depends on the salary range of the employees and location of their house where
they live in. 45% (of basic salary) house rent allowance is determined for that employees
who live in urban area & 50% for city area.

N: B. For Dhaka, Gazipur and Chittagong district, this service rate is 55% of basic salary.

7.10.3 Residential Facilities: The Bank may provide residential facilities to its employees on
pay scales and such terms is to be determined by the Board from time to time.
7.10.4 Daily allowance: ABL provides a daily stipend of 200 taka for lunch to all employees, as
well as recharging money for mobile only for executive employee on a daily basis.
7.10.5 Motorcycle Loan: Employees get loans to buy motorcycle at 4% nominal interest rate
(current bank rate 4%). This benefit is available up to a maximum of 3 lacs taka.
7.10.6 Computer Loan: Every officer of Agrani bank gets a maximum of 70 thousand taka at
simple interest rate at the bank rate for their housing loan.
7.10.7 Car loan: The amount of this loan varies according to their respective job grades.
Executives (DGM, AGM, GM) of Agrani Bank get 23 lakhs taka at free interest rate.
7.10.8 Retention of Car: The retention of a car for the Executive under an appropriate strategy,
which will lower the car's operating costs.

In this case, the executives get 40000,42000 Taka for car maintenance.

7.10.9 Medical Allowances: Medical facilities may be provided to Bank employees on pay
scales and this terms and conditions decided by the Board from time to time. 1500 taka
per month is allocated for the employee whose age is below 65 as well as 2500 taka per
month is allocated for that employee whose age is above 65.

7.10.10 Children Tuition fees: Employees get a benefit of 500 taka per child per month
for their children’s education. This facility has been allocated for maximum 3 children.

7.10.11 Flexible Timings: Employees who are unable to work during regular shifts due to
personal issues or valid reasons are given flexible timings by their employers.

7.10.12 Waiver of Debt: Most recently, under the direction of the Ministry of Public
Finance, all loans taken by the bank employees are fully waived with interest if the
employees employed in the bank in their service period.

7.10.13 Income Tax: Employees of the Bank who earn more than the amount established
by the government from time to time must pay income tax. The concerned employee is
responsible for paying his taxes and obtaining a tax payment certificate. In this case, if the
monthly income of male and female employees exceeds BDT 3 lacs and BDT 3.5 lacs
respectively, then both of them have to pay a minimum of 5000 thousand taka for income
tax.
7.10.14 Travel allowance: In ABL, Employees are awarded a travel allowance for
business purposes. When a bank sends an employee for training, they must also pay a
travel allowance.

7.10.15 Fatality benefits: If an ABL employee becomes unable to work at the bank or
dies, the bank will offer a fatality benefit to that employee. They bring about monetary
benefits to that particular employee or their family members.

7.10.16 Funeral Allowance: If an officer or employee dies while in service or in PRL,

the officer or employee is immediately paid a funeral allowance of Rs. 50,000 / ‘Note
that, once the PRL expires, no officer or employee will receive this benefit.

Employee evaluation:

5.10.6 Overall performance rating:

5.12 Termination: