Message from the Chairman


Dear Valued Shareholders,

Assalamu Alaikum

At the very outset, I would like to remember with reverence the great architect of our independence, the greatest Bangalee of all times, the Father of the Nation, Bangabandhu Sheikh Mujibur Rahman under whose legendary leadership, a country named Bangladesh was liberated and emerged in the comity of nations.  I also call to mind those brave martyrs of 1971 whose great sacrifice have given us the opportunity to be the citizens of an independent country.

Respected shareholders, in 2017, the global economy shaped well for the financial markets to report stronger performance. The fears that dominated the latter stages of 2016, comprising the aftermath of the market crash with the outcome of the US presidential elections, Brexit-triggered recession in the UK and a collapse of the Euro zone following the subsidence of the Italian banking system and now considered to be events of the past as the world looks at new triggers of growth today. The global growth has been estimated at 3.7 percent for 2017, 0.4 percentage points higher compared to that of the growth of 2016. The continued boost in domestic demand in the developed economies, favorable financial conditions, strong business and consumer confidence are expected to play a vital role in achieving a projected growth of 3.9 percent in global economy in 2018. Significant improvements in the investment situation in China’s infrastructure and housing sector and revival from the downturn of commodity prices, even in partial, are expected to induce growth momentum of emerging and developing economies.

Distinguished shareholders, we know that a sound financial sector is the key to sustainable economic development for any country as it facilitates the financial mechanism between borrowers and lenders, helps expedite capital accumulation, and makes use of resources in productive sectors. In Bangladesh, the contribution of the financial sector has increased over years. In FY2010-11, financial sector’s share in GDP was 2.99 per cent at constant price, which has increased to 3.41 per cent in FY2016-17 (BBS, 2017). Commercial banks play the dominant role, accounting for almost 80 per cent of the financial sector. In FY2016-17 the share of banking sector in GDP was 2.91 per cent.

During the year 2017, the Company made revenue of BDT 158.43 millions, achieved Profit after Tax of BDT 21.67 million, recorded an EPS of Tk. 1.73 compared to that of 0.77 in the previous year including Company’s total assets remained at a better position with a growth of 4.00% compared to that of 2016. With more effective processes, stringent procedures, capable people, Agrani SME Financing Company Limited was able to have better financial footing in a more sustainable manner.

In this connection, I would like to inform that during the year 2017, a total number of 4003 enterprises have been established which have generated employment opportunities for 10,000 persons. Out of the total employment 1800 were female and 8200 were male.  We hope the opportunity of employment will be generated more in future.

The most fundamental driver of our business is our sense of supporting the spirit of entrepreneurship among our talented countrymen. Providing timely and judiciously-priced capital, offering advice on economic and market trends and maintaining strong communication channels with them ensures that we remain the preferred financial gateway. Moreover, in addition to loan disbursement, our Company provides comprehensive sets of advisory and capacity building services.

In phases, your Company has reengineered the process to bring in confidence among people, it moved forward with right products and services for the entrepreneurs, spread across to connect lives and now inspire lives to bring in changes. The worth of investing on individual or any business with more authority and control over its path is a vitally important process that helps to explore every day as a life transformation. I believe that our capital has humbly helped in the improvement of businesses – and the quality of life of the entrepreneurs.

The activities of the Company are currently being operated in total 50 branches including a Principal branch situated at the premises of the head office of the Company. I would like to inform you with gratitude that Bangladesh Bank has given consent in principle to open three more new branches which would be opened within couple of days.

With your support, at the beginning of my tenure as the Chairman my expectation for the Company remained sky-high. I advised for few issues so that a prudent blend could be adhered to achieve a qualitative growth for the Company and not only to chase growth for the sake of growth itself. I envisioned that the Company would grow further and would create the platform for mutual benefits and growth of the entrepreneurs who are serviced by the Company. With this end in view during year under review, we have raised our loans and advances outstanding to 107.79 crore from 78.78 crore. However, you will agree that an NBFI with this less or meager loans and advance outstanding will not be viable or will not sustain in future. Thus for the year 2018, we have placed a firm target of increasing our total loans and advances to Tk. 200 crore. In addition, we have also set a target of recovering 100% of our classified and written-off loans.

As your company continues to grow, we are firmly focused on adhering to the regulatory compliance. The annual financial statements are prepared following regulatory ambits, i.e. we have started accrual basis of accounting system instead of cash basis of accounting system maintained long since SEDP project period. We have already completed automating our loan monitoring system. CIB software is in place and automation process of Accounting System is in the final phase. We are also trying to maintain good corporate governance with limited human resources, trying to put sound internal control system and risk management framework in place, promoting ethical practices and complying with laws and regulations. We maintain highest standard of transparency and provide public disclosures to keep our stakeholders informed of our activities.

I must mention that all along the way, we have kept a strict eye and a judicious control on the quality of our credit portfolio. We reported NPLs through control and with necessary provisions provided for prescribed regulatory ambits. Though our NPL levels were pressured (5.70 crore NPL in 2017 against 5.53 in 2016), this was largely on account of our exposure to some accounts turning bad largely in the  investment made during the SEDP project period where development goal was the prime priority rather than profit making objective. We have initiated all legal and regulatory processes to recover our funds. However, as a conservative practice, we have increased the level of provisioning in our 2017 accounts, though the provisioning balance shows a net decline (3.35 crore in 2017 against 5.58 in 2016). This is due to the fact that we have aligned our previously stringent provisioning policy with the instruction of Bangladesh Bank, with effect from December 2017.

The Company has always endeavored to implement and maintain high standard of Corporate Governance norms and has been practicing the principles of good to corporate governance. Strong supervising role of Bangladesh Bank (BB) over the Company were continued in the year 2017.

As an enterprise that is focused on long term sustainability, we would constantly adjust our sails according to wind speeds. To grow sustainably and profitably, we will continue our focus on further strengthening our capital position and financing the emerging business sectors as well as continue our support to the unbanked and under privileged along with missing middle people to the targeted areas of the Company.


I would like to thank my colleagues in the Board for their outstanding work in the past year. They have applied themselves diligently and with great skill to the responsibilities entrusted to us. Their invaluable insights have provided guidance for the direction that the Agrani SME Financing Company Limited is heading for. We would like to thank all our Management and staff, for their dedication and contribution to the success of this Financial Institution. We also thank our shareholders, customers, Bangladesh Bank, Bank and Financial Institutions Division, Ministry of Finance, GOB, Regulatory authorities, Parent Bank and other stakeholders for their continuing support in fostering growth and development of the Company which will help shape up the future for the betterment of the teeming millions.

Mohammad Shams-Ul Islam


The Board of Directors