AB Bank offers a wide range of Corporate Banking Services, which are:
Project financing arrangements serve to provide financial resources for specific projects, which are operated as individual business entities, and the income and cash flows generated by these projects are used to repay their financial obligations. At AB Bank PLC., our clients have the advantage of the extensive support of an experienced team, with innovative financing solutions and access to capital, to meet all the financing requirements however complex. Dominant sectors in the AB Bank’s project finance exposure include Readymade Garments, Textiles, Steel and Engineering, Ship Building, ICT, Telecom, Power, Food Processing, Pharmaceuticals, Electronics and Light Engineering.
With over 33 years of experience, AB Bank Limited has unique range of working capital facilities to meet the requirement of its wide range of client base. AB Bank offers following affordable, convenient financial solutions which are of paramount importance in running an efficient enterprise:
Overdraft, a convenient and flexible form of financing is allowed to meet working capital needs for purchasing of raw materials/inventory, financing receivables, meeting routine operating expenses and overheads of a business.
Time Loan facility is allowed to meet different short-term working capital requirements (for tenors up to 12 months) of the client.
Loan against Trust Receipt popularly known as LTR is allowed as a post import finance for retirement of LC documents. This allows an importer to sell the goods/consignment within a specified time and repay the Bank’s dues.
Packing Credit popularly known as PC is allowed to finance exporters only to procure raw materials against respective export orders.
Loan under Export Development Fund provides an easy access to cheaper financing in foreign exchange for input procurements by manufactures producing final output for direct export, and also by producers of intermediate outputs to manufacturers of the final export to meet their short term liquidity requirements. AB Bank facilitates this financing to its eligible clients to gain competitiveness in global market.
A Bank Guarantee represents an irrevocable obligation of the bank to pay a specified amount of money if the party for which the bank is giving the guarantee does not fulfil its contractual obligations. Types of Bank Guarantee include:
Foreign Bill Purchase (FDBP) is allowed at the request of the Exporter against complied export documents or against acceptance to improve the cash flow of the client.
Inland Bill Purchase (IBP) is allowed as finance against deferred inland bills duly accepted by reputed banks and to improve the cash flow so that clients propensity to do increased business is facilitated.
Buyer’s Credit is a short term credit available to an importer (Buyer) from overseas Lenders such as Banks and other Financial Institutions for goods they are importing. The overseas Banks usually lend the Importer (Buyer) based on the Letter of Comfort (a Bank Guarantee) issued by the Importer’s Bank. AB Bank’s global reputation and acceptance provides its Clients easy access to cheaper foreign funds.
AB Bank Limited offers a comprehensive range of trade finance products designed to aid trade (Both local and international). The extensive choice of products comprises of the following:
Loan against Trust Receipt popularly known as LTR is allowed as a post import finance for retirement of LC documents. This allows an importer to sell the goods/consignment within a specified time and repay the Bank’s dues.
Packing Credit popularly known as PC is allowed to finance exporters only to procure raw materials against respective export orders.
Loan under Export Development Fund provides an easy access to cheaper financing in foreign exchange for input procurements by manufactures producing final output for direct export, and also by producers of intermediate outputs to manufacturers of the final export to meet their short term liquidity requirements. AB Bank facilitates this financing to its eligible clients to gain competitiveness in global market.
A Letter of Credit is a payment undertaking of the issuing/Opening Bank to the Beneficiary against complying presentation. In case of Letters of Credit, AB Bank makes payment only after presentation of complying documents as per the terms of the Credit which ensures a safer and cheaper alternative to making advance payments or deposits.
AB Bank ensures prompt advising of Export Letters of Credit which are received from a wide network of International Banks, to the Beneficiaries.
The Shipping Guarantee is issued upon the customer’s request for the purpose of receiving goods which has reached the port, while the original Transport Document under the L/C has not been received. The customer can take the delivery of goods from the carrier with the shipping guarantee, then exchange with the shipping guarantee upon receiving the original Transport Document.
This minimizes the warehousing costs due to the deferred delivery of goods at port and avoids losses as a result of the changes in market conditions and in the quality of goods. It also enables customers to reduce the fund occupation and improve cash flow
Foreign Bill Purchase (FDBP) is allowed at the request of the Exporter against complied export documents or against acceptance to improve the cash flow of the client.
Inland Bill Purchase (IBP) is allowed as finance against deferred inland bills duly accepted by reputed banks and to improve the cash flow so that clients propensity to do increased business is facilitated.
Foreign Documentary Bill Collection is a trade transaction in which the exporter hands over the task of collecting payment for goods supplied under Letter of Credit to his or her bank, which sends the shipping documents to the importer’s bank together with payment instructions. AB Bank’s skilled manpower makes the process easy for its clients.
A Bank Guarantee represents an irrevocable obligation of the bank to pay a specified amount of money if the party for which the bank is giving the guarantee does not fulfil its contractual obligations. Types of Bank Guarantee include:
Standby Letter of Credit is a guarantee (undertaking) of payment issued by a bank on behalf of its client that is used as a “safety net”, should the client fail to perform a contractual obligation with a third party. Standby letter of credit is issued as a sign of good faith in business transactions, and serves as a testimony to a buyer’s creditworthiness and repayment abilities.
Buyer’s Credit is a short term credit available to an importer (Buyer) from overseas Lenders such as Banks and other Financial Institutions for goods they are importing. The overseas Banks usually lend the Importer (Buyer) based on the Letter of Comfort (a Bank Guarantee) issued by the Importer’s Bank. AB Bank’s global reputation and acceptance provides its Clients easy access to cheaper foreign funds.
AB Bank Limited commenced operation of its Off-Shore Banking Unit (OBU) located at EPZ Branch of the Bank at Halishahar, Chittagong under the license issued by Bangladesh Bank.
In line with the Bangladesh Bank Guideline, AB OBU offers following products & services:
Foreign currency Loans are available to both resident (with BOI permission) and foreign owned companies under a set of agreed terms and conditions.
Companies may avail Foreign Currency refinance against Deferred Export L/Cs/Orders/Bills to offset import constraints and to ease cash flows.
OBU offers bill discounting facility against import bills to secure clients’ business growth and improve their negotiating base with suppliers. This discounting is against import L/Cs originating in Bangladesh for a minimum period of 180 days (raw materials) at LIBOR ++ and 360 days for capital machineries upon acceptance from reputed and rated Banks.
An exporter derives benefit from interest rate differential when discounting export bills including Deferred Payment (DP) Bills by OBU.
Confirmation of L/Cs to Foreign Suppliers Assist in the smooth execution of L/C Term. AB OBU adds confirmation to Deferred Credits issued by other Banks or Branches of AB Bank Conveniently like any offshore Foreign Bank.
Mumbai Branch, India.
AB Bank Limited established its first full-fledged overseas branch at Mumbai, India in the year 1996 as a foreign company under the provisions of the Companies Act, 1956 of India. The Indian Branch of the Bank encompasses all the conventional banking facilities like General Banking, Credit and Trade Finance. The branch focuses more on the Correspondent banking business which facilitates Indo-Bangla trade to increase business relationship between India & Bangladesh for mutual economic benefits of both the countries. The branch is awarded with Authorized Dealer (AD) category one Bank and has a Real-time On-line link with Head Office in Dhaka, Bangladesh and also a member of SWIFT. Though the branch concentrates on Indo-Bangla trade, the same has become the center of excellence for business as well as point of contact for the people of both the country over the years.
PRODUCTS:
Mumbai Operations include a wide variety of products in line with Reserve Bank of India’s (RBI) instructions to meet the changing need and demand of the customers as under;
Mumbai Branch maintaining account relationship with renowned financial conglomerate like Jpmorgan Chase Bank, HSBC, Commerz Bank AG to facilitate its trade related services. It also maintains VOSTRO accounts under Asian Clearing Union (ACU) mechanism with a number of banks and handling good volume of trade finance related business. The branch is manned and managed by an experienced and potential professional team committed to provide efficient and quality services to our correspondents. Correspondent banking business includes;
Mumbai operation serves corporate customers as per their need and demand and provides complete range of services using the financial tools like;
Bank provide personal loan in the form of overdraft / cash credit to meet financing requirement maximum 80% of security i.e against Lien over Fixed Deposit.
Considering the importance, Bank extends credit in SME & MSME sector which is one of the priorities of the Government of India.
Bank provides general banking services in the areas as under;
Account Opening: Various types of accounts are opened as under
Interbank fund transfer through RTGS, NEFT to enable customers’ online TAX payment and also issues Payment Order and Demand Draft
Clearing Service: As a sub-member of HDFC Bank, all clearing & collection related services
AB Bank’s Shari’a compliant Islamic products and services cater for various aspects of banking ranging from everyday transactions to financing, investments for individuals, and corporate customers.
AB Bank Islamic Banking Branch is a professional set-up who are responsible for providing appropriate solutions, consultations for planning, following-up execution and developing Islamic banking activities. Moreover that occurs in coordination with the relevant bodies in line with the strategic trends and business plans. In addition to developing and offering Shari’a compliant banking products and services, AB Bank follows up implementation by the assistance of pioneer professionals.
HPSM Facility allows the client to procure assets 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 transfers to the client as and when final payment of the account is made.
These products are for the clients who are seeking 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 proceeds on deferred payment basis And 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.
This product is similar to 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
This product allows the Bank and the client to jointly participate in a scheme or project. Profit is shared between the Bank and the concerned client as per the pre-agreed ratio. On the other hand loss is shared according to the capital ratio.
Through Mudara Facility 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.
Foreign Trade is facilitated by complying , Shariah principles and concerned rules & regulations of the country provides the following services at its foreign trade desks:
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