Internship Report on Financial Performance Analysis of

Sonali Bank Limited

1.1 Introduction of the Report

Banks play the most important role in the economy. Banks collect money from the
individuals and lend them to others. Now banks offer the widest range of financial services
and perform lots of financial functions. Thus banks have proven that they are the key factor
for the business and economy as well.

Sonali Bank Limited is the largest banking institution in Bangladesh, dynamic in actions,
honest in dealings, just in judgment, fair in approaches and devoted to high quality service to
customers and thereby contribute to the growth of GDP of the country throughout stimulating
trade and commerce, boosting up export, poverty alleviation, raising living standard of
limited income group and overall sustainable socio-economic development in the country.

To achieve the aforesaid objectives of the Bank, different banking activities must play an
active role to provide the financial assistance to the customer who also helps them by
providing them with management assistance when needed. Sonali Bank Limited has played
this role with their experiences in the banking sector where the others are not merely
performed.

The internship report comprises a brief study on the Sonali Bank Limited during three months
internship. The report is distributed in many parts according to nature and requirement of
organization and according to the instructions of supervisor of report.

1.2 Justification of the study

Internship Program is a mandatory program for all students of B.B.A under National
University. Practical orientation is a positive development in professional area. Recognizing
the importance of practical experience, Department of Business Administration has
introduced a one to three months practical exposure as a part of the curriculum of Bachelor of
Business Administration.

For the completion of this internship program I have chosen a bank named “Sonali Bank
Limited” and my internship report is based on “Financial performance analysis of Sonali
Bank Limited”. I have prepared this report under Mr. Sohel Ahmed, Lecturer, Department of
Business Administration, Dhaka City College. In the study period, mainly student gain
theoretical knowledge but now a day, in the job market there is no substitute of principle
work experience. Therefore, before getting into job, students should have some real world
experience in the major field of study on the career choice that interest him/her.

1.3 Objective of the Study

The objective of the study is to gather practice of all knowledge regarding business sector and
operations. Theory classes of B.B.A provide us theories regarding business sector and
practical orientation gives us the chance of view those systems and their operations. More
precisely we can identify those objectives:
 To gather the practical experience base on the theoretical knowledge.

To habituated with the corporate environment and culture.

To serve the function of overall banker customer relationship.

To observe the function of general banking system.

To evaluate the financial performance of Sonali Bank Limited.

To observe the function of merchant banking operations.

To understand and analyze the financial strength of Sonali Bank Limited.

To observe the function of foreign exchange department.

To learn and acquainted to fulfill the academic purpose.

1.4 Scope of the Study

As I was an intern, my scope was limited and restricted for some purpose. I had maintained
some official formality for the collection of data of my report. This study will give a clear
idea about the financial performance of Sonali Bank Limited as well as the different section
of different products and services of Sonali Bank Limited. At last the financial position of the
bank in the banking industry based on its last couple of year’s performance.

Information availability.

Good communication system.

Have a wide area of gaining knowledge.

Good working environment.

1.5 Methodology of the Study

I have designed this report as an expletory research paper. Here I have discussed the general
banking system of Sonali Bank Limited and critically analyze the banking procedure with the
standard one as per theoretical framework. For this purpose I use my personal observation
during my internship program. Through conversation with the different level officers of the
Bank, I also gather knowledge about the general banking system. For theoretical framework,
I go through a number of credit related books, financial management books, business
communication book, foreign exchange manuals, Bangladesh Bank guidelines.

1.6 Sources of the Information

For smooth and accurate study everyone has to follow some rules and regulations. The study
inputs were collected from two sources:

Primary Sources:
 Practical desk work.

Face to face with officers.

Face to face conversation with the client.

Facing some practical situation related with the day to day banking activities.

Secondary Sources:

Annual Report of Sonali Bank Limited.

Brochures.

Websites.

1.7 Limitation of the Study

Any research work needs high degree of involvement regarding collection of information,
creation of data base, literature review and analysis of data. While doing so, many limitations
arise even though we always put our best effort to avoid them. In conducting the present
study, the following limitation has been faced.

The personnel of the organization did not want to disclose the classified information to
the outsiders.

Due to lack of experience, there is a chance of having some mistake in the report though
best effort has been applied to avoid any kind of mistake.

I have faced major limitation in the financial projection as my estimate was rather
informative base than of actual one.

Time was not sufficient to make an in depth study on such issue.

2.1 Definition of Bank

Generally Bank is refers to an Organization that deals with money. The definition of Bank
may be as follows:

As per Bank Companies Act 1991:

Banking Company means any company which transacts the business of banking in
Bangladesh and includes a new bank and specialized bank.

Banking means the accepting for the purpose of lending or institute of deposit of money
from public repayable on demand or other wise and withdraw able by draft, order o
otherwise.

Provided by Famous Encyclopedia

 A commercial banker is a dealer in money in substitutes for money, such as cheque or bill
of exchange.-New Encyclopedia Britannica.

Establishment for custody of money which it pays out on customers order. – The New
Oxford Encyclopedia Dictionary.

Provided by an Ordinances:

Banker includes a body of person whether incorporated or not, who carry on the business
of banking.-English Bills of Exchange Act-1882.

A bank is a person or corporation carrying on bonafide banking business.- English

Finance Act.

Provided by Banking Institutes:

A bank performs an essentially distributive task, service or acts as an intermediary

between borrowers & lenders. In broader sense, however, a bank can be considered the heart
of a complex financial structure. –American Institute of Banking.

Provided by Famous Economist:

A Bank is an institution whose debts are widely in sell element of other people debts to
each other. – R.S. Sayers.

A Banker is a dealer in debt his own and other peoples. – Crowther.

A Bank is a financial intermediary a dealer in loans and debts. – Cairn Cross.

2.2 Objective of a Bank

The objectives of a Bank can be looked at from 3 different perspectives of the 3 key parties to
the banking activities- Bank owners, the Government and The bank clients.

From the owner’s perspective:

i) Earning Profit: Just like any owner of a commercial institution, a bank owner’s main
objective is to earn profit, which is achieved mainly through monetary exchanges.

ii) Rendering Service: Banks Provide Different types of services to the government and
people of the country.

iii) Goodwill: In order to earn profit through rendering services, banks need to have a lot of
goodwill, may be a bit more than other commercial institutions.
iv) Raising Efficiency: To earn maximum profit, banks need to provide efficient service,
for which they require expert workforce.

From the Government’s Perspective:

i) Issue of Notes & Currencies: Since civilizations have moved along from the barter
system, it has been the objective of the Government of different countries to provide its
economy with a proper exchange media through issuance of notes & currencies through bank,
which also take upon the duty of maintaining the system.

ii) Capital formation: The Government wants that bank assist in the macroeconomic
objective of capital formation by encouraging people to participate in savings.

iii) Capital Investment & Industrialization: the Government, as a part of their secondary
macroeconomic objective, wants the bank to assist in capital investment & industrialization
by lending out their accumulated capital.

iv) Money Market Control: Government tries to stabilize the money market through
banks.

v) Employment: As part of their primary macroeconomic objectives, they expect banks

to provide employment for its people.

vi) Advice on Financial Matters: Since banks hire a lot of financial experts and advisors,
it often seeks advice from banks to help them develop policies.

From the Bank Client’s Perspective:

i) Deposit: One of the bank’s main objectives is to accept its clients’ deposits. Like bank
clients also want to deposit money with a competitive rate of interest.

ii) Safety: Providing safekeeping of its client’s monetary possessions and valuables is
another one of banks essential objectives.

iii) Advisors & Consultants: Banks provide its clients with advisors and consultants to
help them chalk out an appropriate savings plan.

iv) Representatives or Trustees: Both the clients and government rely on the bank to act
as their representatives and trustees of monetary exchange activities.

v) Raising living standard: By providing interests against their deposits, banks help their
clients to improve their living standards.

2.3 Business of Banking Company (BANK COMPANY ACT 1991):

In addition to the business of banking a bank company may engage in any one or more of the
following forms of business:

a) the borrowing, raising or taking up of money;

b) the lending or advancing of money either upon or without security;

c) the drawing, making, accepting, discounting, buying, selling, collecting and dealing in
bills of exchange, hoondees, promissory notes, coupons, drafts,bills of lading, railway
receipts, warrants, debentures, certificates, participation term certificates, term finance
certificates, musharika certificates, modareka certificates, such other instruments as may be
approved by the Bangladesh Bank, and such other instruments and securities whether
transferable or negotiable or not;

d) the granting and issuing of letters of credit, traveller’s checks, and circular notes;

e) the buying, selling and dealing in gold and silver coins and coins of other metals;

f) the buying and selling of foreign exchange including foreign bank notes;

g) the acquiring, holding, issuing on commission, underwriting and dealing in stocks,

funds, shares, debenture stock, obligations, participation term certificates, term finance
certificates, musharika certificates, modareka certificates and such other instruments and
investments of any kind as may be approved by the Bangladesh Bank;

h) the purchasing and selling of bonds, scrips or other forms of securities, participation
term certificates, term finance certificates, musharika certificates, modareka certificates and,
on behalf of the constituents of the Bangladesh Bank or others, such other instruments as may
be approved by the Bangladesh Bank;

i) the negotiating of loans and advances;

j) the receiving of all kinds of bonds or other valuables on deposit or for safe custody or
otherwise;

k) providing vaults for the safety of the deposits;

l) the collecting and transmitting of money against securities;

m) acting as agents for the Government, local authorities or any other person;

n) the carrying on of agency business of any description including the clearing and
forwarding of goods and acting as a law agent on behalf of customers, but excluding the
business of a managing agent or treasurer of a company;

• o) contracting for public and private loans and negotiating and issuing the same;

p) the effecting, insuring and underwriting of shares, stocks, debentures, debenture stock of
any company, corporation or association and the lending of money for the purpose of any
such issue;

q) the carrying on and transacting of every kind of guarantee and indemnity business;
r) the buying and acquiring of any kind of property including merchandise, patents,
designs, trademarks and copyrights, in addition to, at the normal business period of a bank,
such or similar transactions as-

1) repurchase by the seller, or

2) selling in the way called purchase on rent, or
3) repayment of outstanding rates, or
4) leases, or
5) sharing out of revenues, or
6) financing in any other way;

s) bringing into possession any property which may satisfy or partly satisfy any of the
claims of the banking company and the managing and borrowing of such property;

t) acquiring, holding and managing of any property or any right, title or interest in any
such property which may form the security or part of the security for any loans or advances
or which may be connected with any such security;

u) undertaking and executing trusts;

v) undertaking the administration of movable and immovable property as executor, trustee

or otherwise;

w) for the benefit of employees or ex-employees of the banking company or the dependants
and connections of such persons-

1) establishing and supporting, or aiding in the establishment and support of associations,

institutions, funds, trusts or any other establishment;
2) granting pensions and allowances;
3) making payments toward insurance;
4) subscribing to any exhibition or any object generally useful;
5) guaranteeing money for all these purposes.

x) the acquisition, construction, maintenance and alteration of any building or works

necessary or convenient for the purpose of the banking company;

y) selling, improving, managing, exchanging, leasing, mortgaging or otherwise

transferring or turning into account or otherwise disposing of all or any part of the property or
rights of the banking company;

z) acquiring and undertaking the whole or any part of the business of any person or
company, when such business is of a nature enumerated or described in this subsection;
aa) doing all such other things as are incidental or conducive to the promotion or
advancement of the business of the company;
ab) any other form of business which the Government may, by notification in the official
Gazette, specify as a form of business in which it is lawful for a banking company to engage.

2.4 An Overview of Banking Operation in Bangladesh

The development process of a country largely depends upon its economic activities. Banking
is a powerful medium among other spheres of modern socio-economic activities for bringing
about socio-economic changes in a developing country like Bangladesh. Three different
sectors like socio-economic changes in a developing country like Bangladesh. Three different
sectors like Agriculture, commerce, and industry provide the bulk of a country’s wealth.

With the passage of time the functions of the bank has got a multi-dimensional configuration.
Of all the functions of a modern bank, lending is by far the most important. They provide
both short-term and long term credit. The customers come from all walks of life, from a small
business a multi-national corporation having its business activities all around the world. The
banks have to satisfy the requirements of different customers belonging to different social
groups.

To regulate the activities of other banks, al the commercial private and/ or nationalized, and
specialized banks perform service related activities within the jurisdiction of the Central
Bank. In our Country, Bangladesh the role of the central bank is entitled to be executed by
Bangladesh Bank. The banking system at independence consisted of two branch offices of the
former State Bank of Pakistan and seventeen large commercial banks, two of which were
controlled by Bangladeshi interests and three by foreigners other than West Pakistanis. There
were fourteen smaller commercial banks. Virtually all banking services were concentrated in
urban areas. The newly independent government immediately designated the Dhaka branch
of the State Bank of Pakistan as the central bank and renamed it the Bangladesh Bank. The
bank was responsible for regulating currency, controlling credit and monetary policy, and
administering exchange control and the official foreign exchange reserves. The Bangladesh
government initially nationalized the entire domestic banking system and proceeded to
reorganize and rename the various banks. Foreign-owned banks were permitted to continue
doing business in Bangladesh. The insurance business was also nationalized and became a
source of potential investment funds. Cooperative credit systems and postal savings offices
handled service to small individual and rural accounts. The new banking system succeeded in
establishing reasonably efficient procedures for managing credit and foreign exchange. The
primary function of the credit system throughout the 1970s was to finance trade and the
public sector, which together absorbed 75 percent of total advances.

The government’s encouragement during the late 1970s and early 1980s of agricultural
development and private industry brought changes in lending strategies. Managed by the
Bangladesh Krishi Bank, a specialized agricultural banking institution, lending to farmers and
fishermen dramatically expanded. The number of rural bank branches doubled between 1977
and 1985, to more than 3,330. Denationalization and private industrial growth led the
Bangladesh Bank and the World Bank to focus their lending on the emerging private
manufacturing sector. Scheduled bank advances to private agriculture, as a percentage of
sectoral GDP, rose from 2 percent in FY 1979 to 11 percent in FY 1987, while advances to
private manufacturing rose from 13 percent to 53 percent.

The transformation of finance priorities has brought with it problems in administration. No

sound project-appraisal system was in place to identify viable borrowers and projects.
Lending institutions did not have adequate autonomy to choose borrowers and projects and
were often instructed by the political authorities. In addition, the incentive system for the
banks stressed disbursements rather than recoveries, and the accounting and debt collection
systems were inadequate to deal with the problems of loan recovery. It became more
common for borrowers to default on loans than to repay them; the lending system was simply
disbursing grant assistance to private individuals who qualified for loans more for political
than for economic reasons. The rate of recovery on agricultural loans was only 27 percent in
FY 1986, and the rate on industrial loans was even worse. As a result of this poor showing,
major donors applied pressure to induce the government and banks to take firmer action to
strengthen internal bank management and credit discipline. As a consequence, recovery rates
began to improve in 1987. The National Commission on Money, Credit, and Banking
recommended broad structural changes in Bangladesh’s system of financial intermediation
early in 1987, many of which were built into a three-year compensatory financing facility
signed by Bangladesh with the IMF in February 1987.

One major exception to the management problems of Bangladeshi banks was the Grameen
Bank, begun as a government project in 1976 and established in 1983 as an independent
bank. In the late 1980s, the bank continued to provide financial resources to the poor on
reasonable terms and to generate productive self-employment without external assistance. Its
customers were landless persons who took small loans for all types of economic activities,
including housing. About 70 percent of the borrowers were women, who were otherwise not
much represented in institutional finance. Collective rural enterprises also could borrow from
the Grameen Bank for investments in tube wells, rice and oil mills, and power looms and for
leasing land for joint cultivation. The average loan by the Grameen Bank in the mid-1980s
was around Tk.2,000 (US$65), and the maximum was just Tk18,000 (for construction of a
tin-roof house). Repayment terms were 4 percent for rural housing and 8.5 percent for normal
lending operations.

The Grameen Bank extended collateral-free loans to 200,000 landless people in its first 10
years. Most of its customers had never dealt with formal lending institutions before. The most
remarkable accomplishment was the phenomenal recovery rate; amid the prevailing pattern
of bad debts throughout the Bangladeshi banking system, only 4 percent of Grameen Bank
loans were overdue. The bank had from the outset applied a specialized system of intensive
credit supervision that set it apart from others. Its success, though still on a rather small scale,
provided hope that it could continue to grow and that it could be replicated or adapted to
other development-related priorities. The Grameen Bank was expanding rapidly, planning to
have 500 branches throughout the country by the late 1980s.

Beginning in late 1985, the government pursued a tight monetary policy aimed at limiting the
growth of domestic private credit and government borrowing from the banking system. The
policy was largely successful in reducing the growth of the money supply and total domestic
credit. Net credit to the government actually declined in FY 1986. The problem of credit
recovery remained a threat to monetary stability, responsible for serious resource
misallocation and harsh inequities. Although the government had begun effective measures to
improve financial discipline, the draconian contraction of credit availability contained the risk
of inadvertently discouraging new economic activity.

Foreign exchange reserves at the end of FY 1986 were US$476 million, equivalent to slightly
more than 2 months worth of imports. This represented a 20-percent increase of reserves over
the previous year, largely the result of higher remittances by Bangladeshi workers abroad.
The country also reduced imports by about 10 percent to US$2.4 billion. Because of
Bangladesh’s status as a least developed country receiving concessional loans, private
creditors accounted for only about 6 percent of outstanding public debt. The external public
debt was US$6.4 billion, and annual debt service payments were US$467 million at the end
of FY 1986.
2.5 Current Structure of Banking Industry

Banks in Bangladesh can be classified into the following categories:

2.6 Central Bank and Its Policy

Bangladesh Bank is the central bank in Bangladesh. It was established on 16 th December

1971 under the Bangladesh Bank (Temporary) Order 1971. Bangladesh Bank (BB), as the
central bank, has legal authority to supervise and regulate all the banks. It performs the
traditional central banking roles of note issuance and being banker to the government and
banks. It formulates and implements monetary policy manages foreign exchange reserves and
supervises banks and non-bank financial institutions. Its regulations Include:

Minimum capital requirements.

Limits on loan concentration and insider borrowing.

Guidelines for asset classification.

 Income recognition.

Bangladesh Bank has the power to impose penalties for non-compliance and also to intervene
in the management of a bank if serious problems arise. It also has the delegated authority of
issuing policy directives regarding the foreign exchange regime. The powers and functions of
Bangladesh Bank are governed by Bangladesh Bank Order 1972 and Banking Companies Act
1991 to make provisions for streamlining the affair of banking companies to suite the present
day’s socio-economic needs of the country. The function of Bangladesh Bank may be
classified into following:

Commercial Bank:

The commercial banking system dominates Bangladesh’s financial sector with limited role of
Non-Bank Financial Institutions and the capital market. The Banking sector alone accounts
for a substantial share of assets of the financial system. The banking system is dominated by
the 4 Nationalized Commercial Banks, which together controlled more than 57% of deposits
and operated 3390 branches (55% of the total) as of December 31, 2007.

Specialized Banks:

Out of the 5 specialized banks, two (Bangladesh Krishi Bank and Rajshahi Krishi Unnayan
Bank) were created to meet the credit needs of the agriculture sector while the other two
(Bangladesh Shilpa Bank and Bangladesh Shilpa Rin Sangstha) are for extending term loans
to the industrial sector. BASIC Bank Limited was established as the policy makers of the
country felt the urgency for a bank in the private sector for financing small scale industries
(SSSIs).

List of scheduled banks in Bangladesh:

Nationalized Banks:

National Commercial Bank Web link

Sonali Bank Limited http://www.sonalibank.com.bd
Janata Bank Limited http://www.janatabank-bd.com
Agrani Bank Limited http://www.agranibank.org
Rupali Bank Limited http://www.rupali-bank.com

Specialized Commercial Banks:

National Commercial Bank Web link

Bangladesh Krishi Bank http://www.krishibank.org.bd
Bangladesh Shilpa Bank http://www.shilpabank.gov.bd
Rajshahi Krishi Unnayan Bank http://www.rakub.org.bd
Bangladesh Shilpa Rin Shangstha http://www.bsrs.org.bd/
BASIC Bank Limited http://www.basicbanklimited.com
Private Commercial Banks:

National Commercial Bank Web link

Pubali Bank Limited http://www.pubalibangla.com
Uttara Bank Limited http://www.uttarabank-bd.com
AB Bank Limited http://www.abbank.com.bd
IFIC Bank Limited http://www.ificbankbd.com
Islami Bank Bangladesh Limited http://www.islamibankbd.com
National Bank Limited http://www.nblbd.com
The City Bank Limited http://www.thecitybank.com
United Commercial Bank Limited http://www.ucbl.com
ICB Islamic Bank Limited http://www.icbislamic-bd.com/
Eastern Bank Limited http://www.ebl-bd.com
National Credit & Commerce Bank Limited http://www.nccbank.com.bd
Prime Bank Limited http://www.prime-bank.com
Southeast Bank Limited http://www.sebankbd.com
Dhaka Bank Limited http://www.dhakabank.com.bd
Al-Arafa Islami Bank Limited http://www.al-arafahbank.com/
Social Investment Bank Limited http://www.siblbd.com
Dutch-Bangla Bank Limited http://www.dutchbanglabank.com
Mercantile Bank Limited http://www.mblbd.com
One Bank Limited http://www.onebankbd.com
EXIM Bank Limited http://www.eximbankbd.com
Premier Bank Limited http://www.premierbankltd.com
First Security Bank Limited http://www.fsblbd.com
Standard Bank Limited http://www.standardbankbd.com
The Trust Bank Limited http://www.trustbank.com.bd
Mutual Trust Bank Limited http://www.mutualtrustbank.com
Bank Asia Limited http://www.bankasia-bd.com
Bangladesh Commerce Bank Limited http://www.bcbl-bd.com
Jamuna Bank Limited http://www.jamunabankbd.com
Shahjalal Bank Limited http://www.shahjalalbank.com.bd
BRAC Bank Limited http://www.bracbank.com

Foreign Banks:

National Commercial Bank Web link

Commercial Bank of Ceylon Limited http://www.combankbd.com
Standard Chartered Bank Limited http://www.standardchartered.com/bd
Habib Bank Limited http://www.habibbankltd.com
State Bank of India http://www.statebankofindia.com
National Bank of Pakistan http://www.nbp.com.pk
Citi Bank N.A. http://www.citi.com/domain/index.htm
Woori Bank http://www.wooribank.com
Bank Al-Falah Limited http://www.bankalfalah.com
The Hong Kong and Shanghai Banking http://www.hsbc.com
Corporation Limited

3.1 A Brief Overview of Sonali bank Limited

Sonali Bank is a state-owned commercial bank in Bangladesh. It is the largest bank of the
country.[A fully state-owned enterprise, the bank has been discharging its nation-building
responsibilities by undertaking government entrusted different socio-economic schemes as
well as money market activities of its own volition, covering all spheres of the economy.
Sonali Bank Limited singularly enjoys the prestige of being the agent of the Central Bank of
Bangladesh in such places where the guardian of the money market has chosen not to act by
itself.

Sonali Bank was established in 1972 under the Bangladesh Banks (Nationalization) Order,
through the amalgamation and nationalization of the branches of National Bank of Pakistan,
Bank of Bhowalpur and Premier Bank branches located in East Pakistan until the 1971
Bangladesh Liberation War. When it was established, Sonali Bank had a paid up capital of 30
million taka. In 2001, it’s authorized and paid up capital were Tk. 10 billion and Tk. 3.272
billion respectively. The bank’s reserve funds were Tk. 60 million in 1979 and Tk. 2.050
billion on 30 June 2000.

The management of Sonali Bank is vested in a 7-member board of directors appointed by the
government. The managing director is the chief executive. He is assisted by a deputy
managing director, six general managers, and other senior executives. The general managers
are in charge of the bank’s branches in the headquarters of the six administrative divisions of
the country namely, Dhaka, Chittagong, Rajshahi, Khulna, Sylhet and Barisal. The bank has
32 departments at its head office including a training institute in Dhaka. On 30 June 2000, the
total number of employees of the bank was 26,085.

3.2 Role of Sonali bank Limited in the National Economy

Economy and Banking industry go together and are inseparable. Sonali Bank Limited has
been playing an important role in the economic development of the country. As many as
26,085 people are in the employment of the Bank as on December 31, 2008. Besides, Sonali
Bank Limited has generated employments for hundreds of people in the projects and
industries established under finance. The Bank has been financing the trade and commerce of
the country since inception of the Bank in 1997. We have handled a volume of countries
exports and imports. The deposits our Bank mobilized through the outlets of branches helped
in the formation of capital in the country. Our lending to borrower reached Tk. 23163.18
million as on June 30, 2009. It has contributed to the industrialization and improvement of
trade and commerce of the country which ultimately accelerated economic growth and
national welfare through multiplying effect. We have collected VAT and tax on interest/
profit earning of customers of the Bank. For relief and rehabilitation of natural calamity-hit
people of the country in 2007 the bank has donated a denoted amount of money.

Foreign Remittance

To develop national infrastructure and economy of Bangladesh Sonali Bank Limited has been
playing dominant role to bring hard earning of Bangladesh expatriates working/ living abroad
through banking channels. For this purpose, Sonali Bank Limited has established a bank
named Sonali Bank (U.K) and an exchange house named Sonali Exchange Company Inc.
(SECI), USA. Our Bank has also established drawing arrangement with various exchange
house / banks in Middle East, Canada and Malaysia. Under this arrangement, remitters can
easily send their hard earning to the beneficiaries in Bangladesh through 1184 Sonali Bank
Limited Branches across the country. They can remit their money through Demand Drafts
(DD), Telegraphic Transfers (TTs), SWIFT and / or Computerized Payment Instructions (PC
to PC via dial up modem) on Sonali Bank Limited selective branches.

Trade Financing:

Sonali Bank Limited extends multiple credit facilities to boost up trade, commerce and
industry. The credit packages and interest rates are as under:

Credit Packages Interest Rate

(Floating)
1. Credit to Trade and Commerce 14%
2. Credit for Power Driven Vehicle/ Water Transport 14%
3. Overdraft Against:
Fixed Deposits 13%
SDPS Accounts
Five years period 12%
Ten years period 14%
Insurance Policy/ Shares and Debenture of Public Ltd. Co. 14%
Work order of Govt./ Semi Govt. Corp 14%
Wage Earners Dev. Bond 13%
4. Housing Loan
Residential 13.5%
Commercial 14%
5. Small Loan 14%
6. Consumers credit 14%
7. Loans To Public Sector Enterprise 14%
8. Cash Credit Facilities for Small Business enterprises 14%
9. Cash Credit Facilities against Bricks Manufacturing 14%
Investment Banking:

Central Accounts & Fund Management Division at Head Office maintains Investment
Portfolio of the Bank. With a view to implementing Government policies & decisions and
accelerating the growth of the capital market of the country, surplus funds of Sonali Bank are
utilized in the following areas:

A) Short Term:

1. Call loans: An overnight investment to other Banks & Financial Institutions.

2. Treasury Bills: Investment made to the Government through Treasury bills.

B) Long Term:

1. Government/ Public Bonds: Sonali Bank Limited purchases bonds issued by the
Govt. of Bangladesh and other Public Bodies.
2. Shares/ Equity Participation: Sonali Bank Limited participate in the IPO and extend
bridge finance to the equity of public limited companies, institutions and public
bodies.
3. Debentures: Sonali Bank Limited purchases debentures issued by the public bodies
and financial institutions under Government.

IT Financing:

Name About Eligibility Loan Debt- Period Security Interes

Limit equit t Rate
y
ratio
Project For Entrepreneurs, of them Maximu Maximum 6 In case of
Financin growing at least two with m Tk. years project with
g internation recognized degree 1.50 including 1 own land &
al markets diploma in computer million. year grace building no
for science or electrical In period. collateral 11%
software engineering/ deserving security
and data telecommunication/app cases, up other than
processing lied physics & to Tk. the personal
this electronics, forming a 10.00 80:20 guarantee of
scheme private limited million the loaners
provides company may apply. may be is required.
long term Experience in related considere Entrepreneu
and short field will be preferred. d rs offering
term credit collateral
facilities security will
on easier be preferred
terms to or loan may
set up and be consider
run IT with
 based personal
projects. guaranty of
worthy
person(s)
(third
party).
Export For export Feasibly implemented Tk. 1.00 90:10L/C or No 11%
Financin of softwareand properly staffed IT million. contract collateral
g and projects with export For larger period plus security
processed L/C or firm contract in contract 21 days but other than
data short hand may apply. Export higher not the personal
term through satellite, BTTB amount exceeding guarantee of
finance is confirmation required. may be 180 days the loaners
extended considere from the is required.
to existing d. date of But for loan
IT disburseme amount
projects. nt. exceeding
Tk.1.00
million,
collateral
will be
required.

3.3 Corporate Profile of Sonali Bank Limited

Name of the Company : Sonali Bank Limited

Chairman : Quazi Baharul Islam
CEO and Managing Director : Md. Humayun Kabir
Company Secretary : Zaheed Hossain
Legal Status : Public Limited Company
Genesis : Emerged as Nationalized Commercial Bank in 1972,
following the Bangladesh Bank (Nationalization) Order No.
1972(PO No.26 of 1972)
Date of Incorporation : 03 June, 2007
Date of Vendor’s Agreement : 15 November, 2007
Registered Office : 35-42, 44 Motijheel Commercial Area, Dhaka, Bangladesh
Authorized Capital : Taka 10.00 billion
Paid-up Capital : Taka 09.00 billion
Number of Employee : 21,839
Number of Branches : 1184
Phone-PABX : 9550426-31, 33, 34, 9552924
FAX : 88-02-9561410, 9552007
SWIFT : BSONBDDH
Website : www.sonalibank.com.bd
3.6 Nature of Business

The Principle activities of the bank include providing of all kinds of commercial banking
services to its customers. The activities can be classified in the following ways:

Corporate Banking.

Project Financing.

SME Finance.

Consumer Credit.

International Trade.

Trade Finance.

Loan Syndication.

Foreign Exchange Dealing.

Rural and Micro Credit.

NGO- Linkage Loan.

Investment.

Government Treasury Function.

Money Market Operation.

Capital Market Operation.

Remittance.
3.7 Organogram
3.8 Board of Directors

Sl. No. Name Designation

1. Mr. Quazi Baharul Islam Chairman
2. Mr. Md. Shahid Ulla Mia Director
3. Dr. Nasreen Khundker Director
4. Mr. A.S.M. Nayem, FCA, FCCA Director
5. Mr. M. Lutfur Rahman Khan Director
6. Mr. K.M. Zaman Romel Director
7. Mr. Kashem Humayun Director
8. Mr. Shaimum Sarwar Kamal Director
9. Advocate Sattayendra Chandra Bhakta Director
10. Mrs. Jannat Ara Henry Director
11. Mr. Suvas Singho Roy Director
12. Mr. Md. Anwar Shahid Director
13. Mr. Md. Humayun Kabir CEO & MD

3.9 Sources and Uses of Funds

Sources of Funds Uses of Funds

Authorized Capital. Cash in Hand.
Issued Capital. Balances in Current Account with other
banks.
Subscribed Capital. Call Loan.
 Called up Capital Short Loan.
Paid up Capital. Purchase of Govt. Credit Instrument,
Share, Security.
Reserve fund and other reserves. Bills Discounting and Treasury Bill.
Deposits and other accounts. Loans and Advances.
Borrowing from Banking companies,
Agency.
Loan from Central Bank.

3.10 Core Values

Sonali Bank Limited (SBL)’s Core Value proposition consists of ten key elements. The
values would assist the bank in perceiving its employees to work as a team towards
accomplishment of assigned duties and responsibility for achievement of desired objectives.

Team work: Open communication, discussion and interaction amongst the employees would
ensure unification of actions and efforts towards achieving the common goal.

Ethics: Every one must ensure adherence to ethical practices of banking.

Objectivity: All persons will have definite objective in carrying out their tasks.

Integrity: Protection and safeguard of customers’ interest is a vital element for societal trust.

Excellence: Excellent performance and effectiveness are preconditions to ensure quality

service to the large customer base of the bank.

Innovation: New and innovative products are the needs of the time for which continuous
action oriented researches are carried out.

Commitment: Every employee is committed to work up to the expected level to ensure

satisfaction of valued customers.

Self Reliance: Each employee will have ownership attitude towards the bank and self
confidence in his work for betterment of the bank.
Transparency: Information is to be kept open for all so that stakeholders can have proper
ideas about the bank’s activities.

Accountability: All employees are responsible for their activities and will remain accountable
to their respective superior for accomplishment of tasks.

3.11 Core Strengths

Transparent and Quick Decision Making.

Efficient Team of Performer.

Satisfied Customers.

Internal Control.

Skilled Risk Management.

Diversification.

3.12 Core Competencies

Knowledge

Experience & Expertise.

Customer Orientation/ Focus.

Transparency.

Determination.

Zeal for Improvement.

Reliability.

3.13 Ethical Principles

Sonali Bank Limited believes that it will become a leading bank in the government sector.
They believe that their aims and objectives can only be realized fully and sustained overtime
by faithfulness to ethics that cannot always be built into sets of rules and regulations. In this
belief in ethics that motivates the bank in its dealings with customer, regulators and
employees.

3.14 Commitment to Clients

Sonali Bank Limited has trying to concentrate on modern banking through continuous using
modern technology. We also trying to help more to customer by providing various savings
schemes like as EDS, MES and DBS etc. Our commitments to the clients are the following:
 Provide service with high degree of professionalism & continuous use of modern
technology through proper use of young generation officers.

Create long-term relationship based on mutual trust with customers.

Share customer’s values & beliefs.

Provide product and service at competitive pricing.

Ensure safety and security of customer’s valuables in trust with us.

3.15 Corporate Social Responsibility(CSR)

Sonali Bank Limited (SBL) has been rendering various services for attaining greater social
goals and objectives. For this process, we aim to contribute towords sustainable development
of the society as a whole and fulfillment of corporate social obligation in particular. To
reinforce CSR activities, the bank has undertaken fresh initiatives in line with Bangladesh
Bank guidelines in the areas of social services, empowerment of women and poor, sports &
culture, banking for the disadvantaged groups, disaster & relief activities.

Social Services:

SBL has been rendering social services through distribution of various allowances to the
Freedom Fighters, Widows, Old–age citizens, vulnerable groups, Disabled peoples etc. as per
laid down criteria of the government. Besides, the bank has been disbursing pension of govt.
employees, monthly salary of teachers, and govt. and semi govt. officials without charges.

Empowerment of women and poor:

SBL has been providing wholesale credit facilities to different micro credit institution who
are in turn lending amongst the women and poor people in different Income Generating
Activities (IGA).

Sports and Cultural Activities:

Sonali Bank Limited has a tradition of patronizing and sponsoring sports and cultural
activities at home and abroad. In 2007, Sonali Bank Limited became Champion in the
Victory Day Hockey Tournament and Runners’ up in the Office Hockey League, Dhaka.

Banking service for the Disadvantaged Groups:

With 1182 branches all over Bangladesh, SBL could reach the banking services to the
disadvantaged groups with the aim to encourage them in mobilization of their hard earned
savings and creation for them investment opportunities.

Employee welfare:

SBL offers annual stipends and scholarships to the brilliant children of the employees of the
bank.
Disaster Relief:

SBL always stands beside the helpless people at the times of natural calamities and extends
helping hands to the sufferers. SBL donated Tk. 10.5 million to help the victims of cyclone
‘Sidor’ to the relief fund of the Chief Advisor. Sonali Bank Limited has collected funds from
Bangladeshis residing abroad and remitted over Tk. 150 million at free of charge through
Sonali Exchange Company (SECI), USA and Sonali Bank (UK) Limited. SBL has also
donated to establish a Cancer Hospital in Dhaka. It has helped a number of Foundations and
Organisations for raising funds through lottery and other means.

Future Plan:

SBL will continue to patronize sports and culture at home and abroad. Arrangements will be
made for rendering better social services to the community apart from core banking activities.
Specific action plans will be initiated to expand CSR programs in line with the guidelines of
Bangladesh Bank and Securities & Exchange Commission (SEC).

4.1 Personal Banking

Sonali Bank Limited extends all the major personal banking facilities and services to its
customers with its skilled manpower and largest network of around 1187 branches covering
all the urban and remote rural areas of Bangladesh. Sonali Bank Limited provides Local &
Foreign Remittance in quickest possible time. Foreign remittance is available in both Taka
cash. & Taka draft.

1. Transfer of fund from one branch to another by – Demand Draft Savings A/C – Mail
Transfer Daily Profit A/C – Telegraphic Transfer FDR A/C.
2. Transfer of fund on Standing Instruction Arrangement (Trade Finance).
3. Collection of cheques through clearing house/beyond Clearing House.
4. Issuance of payment Order/Call Deposit.
5. Locker facilities for safe keeping of valuables.
6. Corporate Client Services with computerized system at selective branches.

4.2 Rural Credit

Bangladesh is primarily an agricultural country. A major portion of her population ( about

85%) live in the rural areas. About 75% of the active rural population depend on agriculture
as the main source of their livelihood. Agriculture contribute about 22% to the GDP. Majority
of the farmers are either small or marginal. So Credit plays a paramount role to augment the
capital base to support agriculture production. With this end in view. Sonali Bank Limited the
largest state owned commercial bank has been playing a vital role in the socio-economic
development & poverty alleviation since 1973. Keeping in view that Credit is one of the
many inputs that complete the cycle of agricultural production Sonali Bank extending rural
credit through 1182 branches over the country.

Sonali Bank Limited introduced indirect rural credit in 1973 through the then IRDP (Now
BRDB) there after continuing lending in the following programs:
 Programs
01)Crop Loan (Special Agricultural Credit Program):

As per Government decision this program was introduced in 1977 to

increase crop production (credit to subsistance and marginal farmers
as well as share-cropers for raising seasonal crops). Now this program
is continuing through 707 branches among the farmers of 1639
unions. Recently Sonali Bank Limited introduced Revolving Crop
Credit Limit System from one branch of each district.
02) Special Investment Program:
This program was introduced in 1993 for creating self employment by
establishing small & medium farms (Poultry, Dairy & Fishery)
through bank finance. Under this program credit is extended through
236 selected branches over the country. Maximum ceiling of loan is
Tk. 5.00 Lac.
03)Farming & off farming program:
This program was introduced in 1994 to involve unemployed rural
people in income generating activities (Poultry, Dairy, Fishery,
Horticulture, Nursery, Beef fattening) by establishing small &
medium farms through bank finance. Credit is extended through all
branches over the country. Maximum ceiling of loan is Tk.15.00 Lac.
04) Krishi Khamar Rin Karmasuchi (Project):
This program was introduced is 1993 for creating new employment,
increase national income & Socio economic development by
establishing medium & big project (Poultry, Dairy & Fishery)
through bank finance.
05)Pond Fisheries Credit Program:
This program was designed to extend bank credit for pisciculture in
derelict ponds/Tanks/water bodies in 1977 Credit is extended through
200 branches over the country. Maximum ceiling of loan is Tk.5.00
Lac.
06)Fertilizer Dealers Credit Program:
This program was introduced to extend bank credit among the
approved fertilizer dealers operating at primary distribution point of
BADC for lifting their quota of Fertilizer from BADC for ultimate
distribution among the farmers in 1981.
07)Sugarcane Production loan Program in Mill Zone Area:
This program was introduced in 1975 to increase sugar production.
Under this program credit is extended to 11 (eleven) sugar mills for
ultimate disbursement among their affiliated farmers.
08)Social Afforestation Program:
This program was introduced in 2004 to increase forestation and to
reduce greenhouse effect. Credit is extended through all branches
over the country. Maximum ceiling of this program is Taka 5.00 lac.

4.3 Micro Credit

Poverty alleviation has appeared to be the focal point of all policy formulation and
development issues of the nation. As such, it has been globally accepted as an effective
strategy for poverty alleviation in one hand and generating employment opportunities on the
other.

In commitment to reduce poverty in urban, semi-urban and rural areas, Sonali Bank Limited
has started functioning in Micro Credit through a full pledged micro credit division in its
Head Office in the year 2003. Presently, 32 projects/programmes are being run under the
control and supervision of this Division. Among all others programmes, Bank-NGO Linkage
program and Credit for Urban Women Micro Enterprise Development (CUMED) in Dhaka
City, Goat rearing, Lamb rearing, Fruit, Herbal, Medicinal and Nursery Project, Micro-
enterprise program- ‘Unmesh’ in Moulavibazar district, MSFSCIP in Kurigram district, Loan
for Disable Persons etc. deserve special mention for channelising the financial resources into
the various potential avenues of microfinance.

Sonali Bank Limited jointly with Swanirvar Bangladesh, BRDB and ADB has been
providing huge investible funds into the different Upazillas within the country. 152 Upazillas
have been covered by the Rural Livelihood Programme (RLP). Further, this Division has
provided taka 179.09 crore to 68 NGO’s under its widely accepted Bank-NGO Linkage
Programme on whole sale basis and whose recovery rate is 100%. Specially, for the disable
people Disable Loan Programme has been undertaken to bring the disable section of the
people under the micro credit facilities. The Goat Rearing Programme undertaken by this
Division has been running with a remarkable impact in reducing the rate of massive- scale
rural poverty. Sonali Bank has already disbursed 46.47 crore upto 31 December, 2007.

Further, in order to create employment opportunities and to generate income of the rural
people two loan schemes under the name and style “Rural Small Farming Loans scheme ”
and “Rural Small business loan” scheme have been introduced in-2004 . In both the programs
there is a provision of collateral free loan up to Tk. 50,000/- . In 2006 a new program has
been introduced named ‘‘ Daridra Bimochane Sahayta Karmasuchi’’for the extremely
‘Monga’ affected rural people. Moreover, in 2007 a special program has been introduced for
SIDR affected 12 areas in which there is a provision of collateral free loan up to TK.20,000/-.

Up to December 2007, Tk. 3299.47 crore has been disbursed under various project/ programs
of this Division where as this disbursement figure was Tk. 3056.63 crore up to December
2006. The key features of some running projects/Programs of Micro Credits given as
follows:-

Sl. No. Project/ Programs Target Group Loan Size in Tk.

1 Swanirvar Credit Program Poor Landless people 1,000-15,000
2 Crop Godown Credit Project Small & Medium Highest 10,000
Farmers
3 Sonai Bank -BARD, Comilla Priogik Bittahin rural male & Highest 10,000
Gabesana Rin Prokalpa female
4 Sonai Bank- RDA, Bogra Priogik Bittahin rural male & Highest 10,000
Gabesana Rin Prokalpa female
5 Marginal and Small Farms System Marginal, Poor & Small Highest 10,000
Crop Intensification Farmers
 program(MSFSCIP)
6 Herbal & Forestry, Medicinal Plant & Bittahin, Poor Energetic 5,000-25,000
Nursery Development Credit program Youth
7 Grameen Khudra Babsa Rin Poor People Highest 50,000
Karmasuchi
8 Daridra Bimochane Sahayta Rin Hard Core Poor People 5,000-10,000
Karmasuchi
9 Loans to Disable People Disabled People 25,000-50,000
10 Unmesh Credit Program Micro Entrepreneurs 50,000-2,00,000
11 Goat Rearing Credit Program Small &Medium Highest 50,000
Entrepreneurs
12 Credit for Urban Women Micro Urban Women Highest 5,00,000
Enterprise Development (CUMED) Entrepreneurs
13 Bank-NGO linkage Credit Program Poor People Highest 5000-
50,000(Loan
Wholesaling to
NGOs)
14 Khudra Khamar Rin Karmasuchi Small Entrepreneurs Highest 50,000
15 Salt Production Credit Program Actual Salt Producer 5,000-12,500
16 Individual Irrigation / AgriculcuralSmall, Marginal & 10,000-16,500
Equipment Credit Program Medium Farmers
17 BRDB Crop Credit Program Small, Marginal & 8,000-15,000
Medium Farmers
18 BRDB Integrated Rural Development Co operative Poor Male 1,500-20,000
Program & Female Member
19 BRDB Rural Livelihood Program Small, Marginal & 5,000-20,000
Medium Farmers
20 BRDB -Shrimp Culture Credit Small, Marginal & 2,333-28,000
Program Medium Farmers
21 Special Loan for SIDR affected Area SIDR affected People Highest 20,00

4.4 International Banking

Sonali Bank Limited expertise in International Banking has a record of in-house growth over
more than half a century. Its pioneer role in handling foreign trade and foreign exchange
transactions ever before independence of the country still remains unchallenged. With wide
network of branches at home and also a large number of correspondent banks world-wide it is
singularly handling the largest volume of export-import business including home-bound
remittances.

Products & Services:

Export Credit (Pre-shipment & Post shipment)

Facilitating Supplier’s Credit

 LCs (Letters of Credit)

Guarantees in Foreign Currency

- Bid Bond
- Performance Guarantee
- Advance Payment Guarantee.

Bill Purchasing/Discounting

Remittance, collection, purchases & sales of Foreign Currency & Traveller’s Cheques.

NRAT (Non-Resident Account in Taka)

NFCD A/c (Non-Resident Foreign Currency Deposit)

RFCD A/c (Resident Foreign Currency Deposit)

Convertible and Non-convertible Taka Account

Forward contracts

Correspondent Banking Relations

Import Finance:

Sonali Bank Limited supports its customers by providing facilities throughout the import
process to ensure smooth running of their business. The facilities are:

a. Import Letter of Credit.

b. Post Import Financing (LIM,LTR etc).
c. Import collection services & Shipping Guarantees.

Interest Rate: 12% to 14%

Export Finance:

Sonali Bank Limited offers extra cover to its customers for whole export process to speed up
receipt of proceeds. The facilities are:

a. Export Letters of Credit advising.

b. Pre-shipment Export Financing.
c. Export documents negotiation.
d. Letter of Credit confirmation.

Interest Rate: 7% + 1% service charge

The comparative position of foreign exchange business for the year 2007 and 2008.

(Tk. in Crore)
 Sl. No. Particulars 2008 2007
1. Total Import 15146.51 7649.68
2. Total Export 7938.98 7804.59
3. Inward Remittance (Including WES) 10344.48 9217.83
4. Outward Remittance (Including WES) 1274.29 1232.28
Total 34704.26 25904.38

4.5 Industrial Financing

Credit Schemes:

Long term loan for setting up new industrial units and BMRE of existing units including
working capital finance are extended by Sonali Bank Limited to cottage industries, small-
medium-large scale industries and also to self-employed persons with a view to creating
employment opportunities, deployment of resources, increasing GDP and over-all industrial
development of the country. Currently the following credit schemes are on offer by the bank:

Some of the main Credit Schemes:

Industrial Financing for Thrust Sectors.

Sonali Bank Industrial Credit Scheme.

Special Investment Scheme for Cottage and Small Industries.

Financing Large Scale Industries through Banks’ Consortium.

Financing Software Development and Data Processing.

Designated Branches:

About 100 branches including all the corporate and district headquarters branches are
designated to handle industrial credit.

Thrust Sectors:

Besides the traditional and oft-trodden sectors, Sonali Bank Limited has also come up with
very low rate of interest to finance the following thrust sectors of the economy as identified
by the Government:

Software development and data processing.

Agro-based industries (excepting cold storage for preservation of potatoes).

Manufacture of artificial flowers.

Frozen foods.
 Gift items (preferably export oriented).

100% export oriented finished leather goods.

100% export oriented jute goods.

Jewelry and Diamond cutting and polishing.

Oil and Gas.

Sericulture and silk industries.

Stuffed Toys (preferably export oriented).

100% export oriented textile industry (excepting garments manufacturing industries).

Other Viable Industrial Sectors:

Composite textile (woven & knit fabrics).

Textile / Acrylic Spinning.

Sweater Industry.

Garments Accessories & Washing Plant.

Denim Fabrics (export oriented).

Tourism / Hotel and Resort facilities.

Hospital & Clinics.

Other Export linkage industries.

Power Generating Plant.

LPG, CNG Filling & Conversion plant.

Pharmaceutical Ind.

Plastic Ind.

Tannery/Rubber Foot wear.

Other highly rewarding appropriate technology based projects.

Interest Rates:

Project/Term Loan : 12.00% to 13.00%

 Working Capital : 13.00%

Overall Industrial Credit Position of the Bank as on 31 December, 2008:

(Tk. in Crore)

Sl. Nature of Loan No. of Amount Amount Outstanding

No sanctioned recovered
Units
1. Large & Medium 698 3811.31 1050.55 2646.66
2. Small & Cottage 21152 675.02 648.62 158.70
3. W.C to industries 1298 1421.32 851.49 2474.92
Total: 23148 5907.65 2550.66 5280.28

4.6 Merchant Banking

Sonali Bank Limited, the largest State owned commercial bank in Bangladesh. Began to
invest in the secondary market from the month of February 2009.

The growth of institutional investments in capital market of Bangladesh has been far below
the expectation. As we know Merchant Bankers can play a vital role in helping to make the
stock market transparent and vibrant. Sonali Bank Limited obtained License from the
Securities and Exchange Commission in 23 March 2009, to operate in the Capital
market as a full-fledged Merchant bank. The terms & conditions imposed by the SEC in
operating the Merchant Banking activities are:

1. 1. There shall be separate unit with separate personnel and designed area for the
purpose of Merchant Banking Operation.
2. 2. The Merchant Banking Unit shall maintain separate books of accounts and
financial statements to show clearly the financial position in respect of its Merchant
Banking Operation. Financial statements shall be audited by a chartered accountant
firm certifying that the relevant rules and guidelines by SEC and other relevant
authorities have been strictly adhered to;
3. 3. The Merchant Banking Unit shall be equipped with necessary modern office
equipment for smooth functioning & efficient services to the clients;
4. 4. All other terms & conditions as laid down in the SEC (Merchant Banker &
Portfolio Manager) Regulations 1996, SEO 1969, SEC Rules 1993 and any
amendment thereof from time to time shall be adhered to at all times.

As stipulated in the Securities and Exchange Commission (Merchant Banker and Portfolio
Manager) regulations 1996, the services of issue management, portfolio management,
underwriting of shares and securities and advisory services fall under the purview of
Merchant Banking Operation. Sonali Bank Limited has been going with Merchant
Banking Operation since 14 September 2009 at 11/A, Sara Tower (11 th Floor),
Toyeenbee Circular Road, Motijheel, Dhaka. It has a Merchant Banking Management
Committee to manage & take quick decision of merchant banking activities.
SBL provides margin loan to the investors at the ratio- 1:25 (previously 1:1.5) and we always
abide by the restrictions, rules & regulations of Securities and Exchange Commission. For
example, the recent SEC restriction to provide margin loan to the company, which have more
than 50% of P/E ratio. SBL doesn’t provide margin loan for ‘Z’ category shares, Mutual
funds & some risky shares. SBL always counsel the clients to follow the fundamental factors
of investment. Firstly, SBL suggest taking an overview of the desired company in which the
investors want to invest, such as company’s background, authorized capital, Paid up Capital,
Assets & Liabilities, last five years Net Profit, Dividends, Earning per Share, Net Asset
Value, P/E ratio, highest & the lowest price of the share etc. Thus an investor can know the
Company’s Performance & Management Efficiency to take an investment decision. After all
these, investors can take his/her decision at his/her risk to invest in any company’s share.

Now SBL has a workstation of ICB named ISTCL for the trading purpose. So far SBL is
going to underwrite the Tk.100 crore IPO of Janata Bank Limited. SBL have been offered to
take private placement of Beximco Pharmaceuticals to purchase preference shares. We are
participating in the upcoming IPO of JBL as Banker’s to the issue.

As per BPRD Circular no-12 of Bangladesh Bank on 12 th October 2009 every merchant
Banking Unit of Commercial bank should be converted into a subsidiary company. We are
already got the permission of Bangladesh Bank. In this regard a Memorandum and Articles of
association have been approved by the Board of Directors of Sonali Bank Limited. Sonali
Bank Limited has submitted the name of the subsidiary company as “Sonali Investment
Limited” to the registrar of joint stock companies and also got the Name clearance letter.
There will be 6(six) Directors for Sonali Investment Limited including 4(four) Directors
represented from Sonali Bank Limited & 2 independent Directors from other than Sonali
Bank Limited. Human resources will be employed from Sonali Bank Limited on deputation.
We hope Sonali Investment Limited will also become the Leading Merchant Bank like the
Sonali Bank Limited, a Leading Commercial bank in Bangladesh.

The data regarding the Merchant Banking operations in the Merchant Banking Unit of
Sonali Bank Ltd is given below:

Obtained License from SEC : 23 March 2009

Started Merchant Banking Operation : 14 September 2009

Number of Accounts opened up to date : About 200

Size of the Investors Portfolio : Tk. 150.50 million

Income of SBL from Merchant Banking

(Tk. In millions)

Name of the Income Year (Range) Year

Head
2010 up to January 25
 2009 (September-December)

Interest on Portfolio Loan 0.24 0.33

Management Fees 0.035 0.064
Documentation Charge 0.025 0.083
Settlement Fees 0.25 0.28
Total 0.55 0.757

Loan Ratio : 1: 1.5 (at present 1:1)

Rate of Interest : 13%

Management Fee : 1%

To operate the Merchant Banking activities Sonali Bank Ltd have purchased the unique soft
ware namely ‘’m bank” developed by the renowned software Vendor M/S Leads
Corporation.

The Merchant Banking Unit will start its operation as a subsidiary company under the name
of “Sonali Investment Limited” very soon. And we believe that it will be able to hold the
position of the leading Merchant Bank as it has been doing since it started its journey in the
banking arena.

4.7 SME Banking

To reduce poverty within 2015 Sonali Bank Ltd. Has start a service which is SME loan. By
offering this product Sonali Bank Ltd. Helps government to increase job opportunity as well
as increase GDP.

Objectives of SME Loan-

Help government to remove poverty.

Earn much currency by Export Import business to government.

Helps woman entrepreneur to be self-independent by providing loan.

Industrialization with employment opportunity.

Requirements for getting Loan-

Minimum 2 years business experience.

Entrepreneur must be educated & healthy and age must be within 18-60.
 Women entrepreneur will get first preference.

Entrepreneur must be Bangladeshi citizen.

Types of product for getting SME loan-

Export products-

1. Fringing Plant for fish.

2. Tanaree business.
3. Export furniture.

Import products-

1. Xining Mill.
2. Garments accessories.
3. Washing plant, Packaging.

Loan Limit-

Depends on business type loan can be 50000-100000000

Duration and Interest rate-

Duration depends on business type. But in case of current assets 1 year and in case of term
loan 3-7 years. Interest rate is 13%.

4.8 Online Banking

1. Branch Computerization: 267 branches are on live operation. Out of 1182 branches at
home, 1169 branches have already been entered in the automation network.

2. Foreign Remittance : Bank’s own in-house software “Remittance Management System”

(RMS+), having, among others, the feature of paying foreign remittance instantly over the
counter is being implemented at all branches. This web based software provides digital
services to the expatriates through its unique advantage of sending confirmation message to
the mobile phone of the remitter/beneficiary.

3. ATM: Sonali Bank Limited is a member of Q-Cash ATM network. At present the bank
has 12 ATM booths. Establishment of 43 more ATM is on. Sonali Bank’s ATM cardholders
enjoy the access to the ATMs and POS of Dutch Bangla Bank Ltd. and Brac Bank Ltd.
besides those of Q-Cash consortium. Sonali Bank recently launched Credit Card.

Features:

Sonali Bank Ready Cash Card is a Debit Card.

 Cardholder can easily pay utility bills like – Water, Telephone, Gas etc.

It is easy to remit funds among the participating branches of the Bank.

Transaction beyond working hours.

It is a riskless Cash Carrying facility.

Cashless purchase can be made form specific merchandise points.

Only computerized Branches of Dhaka City will deal Ready Cash Card.

Branches of other Cities and Towns will introduce Sonali Bank Ready Cash Card in due
course.

4. Online and SMS Banking: At present 34 branches of Sonali Banks are included in the
Online Any Branch Banking (ABB) network. The bank is seriously working on connecting
all branches in the Real-time Online Banking network gradually. Branches having ABB
facility are also rendering SMS banking services.

5. SWIFT: SWIFT facilities are available in Bank’s Head Office and in 21 designated
branches.

4.9 Ancillary Services

Sonali Bank Limited offers multiple special services with its network of branches throughout
the country in addition to its normal banking operations.

Collection:

Gas bills.

Electricity bills.

Telephone bills.

Water/Sewerage bills.

Municipal holding Tax.

Passport fees, visa fees and Travel tax.

Customs & Excise duties.

Source tax and VAT.

Jakat fund.

Hajj deposit.
 Land development tax.

Payment:

Pension of employees of Government and other Corporate Bodies.

Bangladesh Bank employees’ pension.

Army pension.

British pension.

Students’ stipend/scholarship.

Govt. & Non-Govt. Teachers’ salary.

Food procurement bill on behalf of the Govt.

Social Services:

Old age allowances.

Widows, divorcees and destitute women allowances.

Freedom Fighters’ allowances.

Rehabilitation allowances for acid survival women.

Maternal allowances for poor women.

Disability allowances.

Sale & Encashment/Purchase:

Savings Certificates.

ICB Unit Certificates.

Prize Bonds.

Wage Earner’s Development Bonds.

US Dollar Premium & Investment Bond.

Lottery tickets of different Semi-Govt. and Autonomous Bodies.

Sanchaypatra.

Public Service Commission’s application form.

 Judicial Service Commission’s application form.

Exchange of soiled / torn notes.

4.10 Miscellaneous Services

Bank A/C information of tax payee client according to demand of NBR.

Local Governance Support Project.

Enlist of Non Government Insurance Company.

Locker Service is provided in some branches of Sonali Bank Limited. Customers may
avail this service and secure their valuables.

Locker Size Yearly Charge (Tk.) Security Deposit (Tk.)

Small 1,200.00 2,000.00 (Refundable)
Medium 1,500.00
Large 2,000.00

5.1 Rural Deposit Scheme (RDS):

A deposit scheme for the rural or people live under middle-class. Monthly deposits:
100,200,300,400,500 and 1000Tk.

Duration of the deposit- 7 years & rate of interest- 9%

Loan against account: When any particular account duration reaches to 1 year and on that
account if there are 5000 Tk. Balance money then the account-holder can get maximum 80%
overdraft opportunity. RDS can be opened in those branches of Sonali Bank which are
located in the rural.

Procedure of Rural Deposit scheme

Deposit amounts Total Money Given Interest Bonus Amount Total Money
types After 7 years including Interest
and Bonus
100 8400 2677 1000 12077
200 16800 5355 1100 23255
300 25200 8032 1200 34432
400 33600 10710 1300 45610
500 42000 13387 1400 56787
1000 84000 26775 1900 112675

5.2 Marriage Savings Scheme (MSS):

Duration of the deposit: 10 years & interest- 8.5%

Loan opportunity against account: When any particular account duration reaches to 1 year
and on that account if there are 10000Tk. balance money then the account-holder can get
maximum 80% overdraft opportunity. MSS can be opened in all branches of Sonali Bank
Limited.

Bonus only is given after the continuous operation by the account holder.

Procedure of Marriage Savings Scheme

Deposit amounts Total Money Given Interest Bonus Amount Total Money
types After 10 years including Interest
and Bonus
100 1200 6622 300 18922
200 2400 13244 600 37844
300 3600 19866 900 56766
400 4800 26488 1200 75688
500 6000 33110 1500 94610
1000 120000 66220 2000 188220
2000 240000 132440 3000 375440
3000 360000 198660 4000 562660
4000 480000 264880 5000 749880
5000 600000 331100 6000 937100
6000 720000 397320 7000 1124320
7000 840000 463540 8000 1311540
8000 960000 529760 9000 1498760
9000 1080000 595980 10000 1685980
10000 1200000 662200 11000 1873200

5.3 Monthly Earning Scheme (MES):

Duration of the deposit: 3 and 5 years.

Amount of deposits: 50000 or 100000.

Rate of interest: For 3 years 9% and for 5 years 10%.

Loan opportunity against account: When 80% overdraft opportunity on a particular account.
MES can be opened in all branches of Sonali Bank. Bonus amount can be taken monthly
wise.

Procedure Of Payment Of Monthly Interest

Deposit 3 years 5 years
50000 375 420
100000 750 835

5.4 Double Benefit Scheme (DBS):

Duration of the deposit: 8 years.

Amount of deposits: 5000 minimum.

Rate of interest given yearly basis as following:

Duration Interest rate Interest Total Amount

Up to 6 months 4% 1000 51000
Up to 1 year but more than 6 months 5% 2500 52500
Up to 2 year but more than 1 year 6% 6000 56000
Up to 3 year but more than 2 year 7% 10500 60500
Up to 4 year but more than 3 year 8% 16000 66000
Up to 5 year but more than 4 year 8.5% 21250 71250
Up to 6 year but more than 5 year 8.5% 31537 81573
Up to 7 year but more than 6 year 8.75% 39945 89945
Up to 8year but more than 7 year 9% 49628 99628
Including 100000
Bonus 372 Tk.

All types of vat according to government rule will be deducted from the account.

Rule for Double Benefit Scheme-

This account can be open in all the branches of Sonali Bank Limited. But account holder
must be age of 18 or above.

An account holder can get up to 80% loan against his deposit in the account.

In case of closing account customer can any time apply to the Manager (Where account
was opened), but a charge of 250 Tk. will be applicable.

5.5 Medicare Deposit Scheme (MDS):

Duration: 10 years.

Amount of monthly saving: 500-10000 Tk. & rate of interest is yearly 8%.

Date of payment: 10 -20 of every month.

Cumulative total after end of duration

Monthly Payment amount Bonus Bonus + Interest after end of duration
500 1500 92185
1000 2000 183371
2000 3000 365743
3000 4000 548115
 4000 5000 730487
5000 6000 912858
6000 7000 1095230
7000 8000 1277602
8000 9000 1459974
9000 10000 1642345
10000 11000 1824717

5.6 Sonali Deposit Scheme (SDS):

Duration: 5 years.

Amount of monthly savings-500-10000 Tk. & rate of interest is yearly 8.5%.

Date of payment: 16-25 of every month.

Cumulative total after end of duration

Monthly Payment amount Bonus Bonus + Interest after end of
duration
500 1500 38689
1000 2000 76378
2000 3000 151756
3000 4000 227134
4000 5000 302512
5000 6000 377891
6000 7000 453269
7000 8000 528647
8000 9000 604025
9000 10000 679404
10000 11000 754782

5.7 Education Deposit Scheme (EDS):

Duration: 10 years.

Amount of monthly savings: 500-10000 Tk. & rate of interest is yearly 8%.

Date of payment: 10-15 of every month.

Cumulative total after end of duration

Monthly Payment amount Bonus Bonus + Interest after end of
duration
500 1500 92185
1000 2000 183371
 2000 3000 365743
3000 4000 548115
4000 5000 730487
5000 6000 912858
6000 7000 1095230
7000 8000 1277602
8000 9000 1459974
9000 10000 1642345
10000 11000 1824717

Requirement for the special scheme:

Photocopy of national ID of both nominee and client. 2copy of passport size photograph
which is attached by introducer and one copy of photograph of nominee which is attached by
the client.

Valid introducer of particular branch.

Clients must be 18.

5.8 Consumer Credit:

With the steady development of the industrial and the service sectors in Bangladesh, the level
of personal consumption has recorded progressive growth. To cater to the growing demand
for consumer durables, Sonali Bank Limited has launched the “Consumers’ Credit Scheme”,
with the following features:

Eligibility : Permanent employees with 5 years’ service

in Govt., Semi-Govt. organization and
Autonomous & recognized bodies.
Loan Limit : Maximum Tk. 1.00 lac.
Debt-equity ratio :75:25
Interest rate(w.e.f. 01, September 2009) :14.00%
Mode of repayment : Monthly installment.
Period of loan : Maximum 3 years.
Security : a) Hypothecation of consumer goods to be
purchased.
b) Letter of guarantee from the employer.
c) No objection certificate & salary certificate
from employer.
d) Lien on provident fund/gratuity.
Designated Branches : All district branches and the corporate
branches.
5.9 Loan Facility for Diagonstic Center:

Sonali Bank Limited has launched a new loan scheme for “Diagnostic Center” to promote
medical facilities. The salient features of the scheme are as follows:

Nature of loan : Cash Credit (Hypothecation).

Debt-equity ratio : 60:40
Interest rate(w.e.f. 01, September : 14.00%
2009)
Primary Security : Stock of Chemicals, X-ray papers, Injection Syringe,
Medicine etc.
Collateral Security : Collateral security twice the value of the loan is
required.
Period of Loan : One Year.

5.10 Special Small Credit Scheme:

Sonali Bank Limited has launched a loan scheme for “Teachers and Employees” to enhance
their living standards. The salient features of the scheme are as follows:

Eligibility : Permanent employees and teachers with 3

years’ service in Govt., Semi-Govt.
organization and Autonomous & recognized
bodies.
Loan Limit : Tk.20, 000 to Tk. 9.00 lacs.
Margin : Maximum 20% of loan limit.
Interest rate(w.e.f. 01, September 2009) :12.00%
Mode of repayment : Monthly installment.
Period of loan : Maximum 3 years.
Products purchased by the loan Personal computer, printer, scanner.

Sewing and embroidery machine.

Refrigerator, freezer, television, furniture and

electronic fan.

Motor cycle or by cycle.

Solar power or bio-gas plant.

Nursery or vegetable firm.

Poultry, dairy, fishery plant.

 Marketing of agricultural products.

Designated Branches : All district branches and the corporate

branches.

5.11 Foreign Employment Credit Scheme:

Sonali Bank Limited has launched a loan scheme for “Foreign employment” to bear their air
heir, commission and charges for foreign employment agency. The salient features of the
scheme are as follows:

Eligibility : Bangladeshi permanent employees in

foreign countries who has work permit and
visa.
Loan Limit : Maximum Tk. 3.00 lacs.
Interest rate(w.e.f. 01, September 2009) :12.00%
Mode of repayment : Monthly installment.
Period of loan : 3 months grace period and Maximum 3 years.
Designated Branches : All district branches and the corporate
branches.

6.1 Performance at a glance

(Tk. in crore)

Year 2008 2007 2006 2005 2004

Total Income 2662.10 1429.02 2313.17 1986.39 1575.84
Total Expenses 2500.41 1004.32 2012.59 1590.03 1480.59
Total Operating Profit 161.69 424.70 300.58 396.36 95.25
Net Profit/Net Loss 231.11 97.36 (3627.56) 20.80 15.75
Paid-up Capital 900.00 900.00 500.00 327.22 327.22
Reserve Fund 1246.95 1196.28 283.13 303.40 283.40
Deposits 36438.60 32899.72 30230.30 27707.90 25223.39
Advances 23116.66 20634.76 24102.93 22700.96 16828.30
Export 18283.46 17022.42 17814.40 13957.36 12759.28
Import 16420.80 8881.96 8279.60 12984.31 9153.89
No. of Employees: 11507 11769 12118 12380 12732

Officer 10332 10773 11155 11553 11718

Staff
Total 21839 22542 23273 23933 24450
No. of Branches: 563 562 562 562 490

Urban 619 621 621 621 696

Rural
Total 1182 1183 1183 1183 1186

6.2 Common-size Statement (Balance Sheet)

PROPERTY AND ASSETS TAKA %

Cash 20,641,592,198 4.1873929
Cash in hand (including foreign currency) 4,366,813,852 0.8858602
Balance with Bangladesh Bank and its agentBank 16,274,778,346 3.3015327
Balance with other Banks and financial institutions 9,979,717,359 2.0245046
In Bangladesh 5,265,819,000 1.0682341
Outside Bangladesh 4,713,898,359 0.9562705
Money at call and short notice 250,857,360 0.0508894
Investments: 95,093,241,199 19.290797
Government 93,947,843,070 19.058439
Others 1,145,398,129 0.2323577
Loans and Advances 231,166,579,465 46.894895
Loans, Cash Credits, Overdrafts etc. 208,184,384,025 42.232683
Bills purchased& discounted 22,982,195,440 4.6622122
Fixed assets including premises, furniture and fixtures 9,920,927,663 2.0125784
Other assets 125,893,233,074 25.538942
Total Assets 492,946,148,318 100
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks, financial institutions and 545,955,691 0.1107536
agents
Deposit and other accounts 364,385,970,931 73.920036
Current Accounts and other Accounts 98,795,523,389 20.041849
Bills payable 6,642,924,279 1.3475963
Savings Bank Deposits 120,423,161,432 24.429273
Fixed Deposits 138,524,361,831 28.101317
Other Deposits 0 0
Other Liabilities 103,596,507,559 21.015786
Total Liabilities 468,528,434,181 95.046576
Capital/ Shareholder’s Equity
Paid up capital 9,000,000,000 1.8257572
Statutory Reserve 3,116,476,533 0.6322144
Other Reserve 9,353,019,515 1.8973715
Surplus in Profit and Loss A/C / Retained Earnings 2,948,218,089 0.5980812
Total Shareholders’ Equity 24,417,714,137 4.9534243
Total Liabilities and Shareholders’ Equity 492,946,148,318 100

6.7 Sensitivity Analysis

Particulars Given Data When Interest When Interest

income is 10% income is 10%
(2009) increased decreased
Interest income 17683108223 19451419045 15914797401
Interest paid on deposit (15800026939) (15800026939) (15800026939)
Net Interest income 1883081284 35251445984 31714824340
Investment income 7709248980 7709248980 7709248980
Commission, exchange & brokerage 6889922752 6889922752 6889922752
Other operating income 283667424 283667424 283667424
Total Operating Income (A) 16765920440 50134285140 46597663496
Salary and allowance 7374257001 7374257001 7374257001
Rent, Taxes, Insurance, electricity etc. 410285295 410285295 410285295
Legal expenses 38782497 38782497 38782497
Postage, stamp, telecommunication etc. 70943693 70943693 70943693
Stationary, Printing, Advertisement etc. 138374104 138374104 138374104
Chief Executive’s Salary and fees 9600000 9600000 9600000
Director’s fees 1729240 1729240 1729240
Auditor’s fees 855000 855000 855000
Charges on loan losses - - -
Depreciation and repair of bank assets 196779376 196779376 196779376
Other Expenses 1213847018 1213847018 1213847018
Total Operating expenses before 9455453224 9455453224 9455453224
amortization
Amortization of Intangible Assets 5000000000 5000000000 5000000000
Total operating expenses (B) 14455453224 14455453224 14455453224
Profit/ (Loss) before provision (C=A-B) 2310467216 35678831916 32142210272
Provision for loan - - -
Provision for diminution in value of (11200000) (11200000) (11200000)
investments
Other provision (55000000) (55000000) (55000000)
Total Provision (D) 66200000 66200000 66200000
Total Profit/(Loss) before taxes (C-D) 2244267216 35612631916 32076010272
Provision for taxation
Current tax (981948567) (981948567) (981948567)
Deferred tax 274447959 274447959 274447959
(707500608) (707500608) (707500608)
Net Profit after Taxation 1536766608 36320132524 32783510880
Earnings Per Share (EPS) 17.08 403.557028 364.261232

6.8 Scenario Analysis

Particulars Given Data Best Case Worse Case

(2009)
Interest income 17683108223 19451419045 15914797401
Interest paid on deposit (15800026939) (15010025592) (16590028286)
Net Interest income 1883081284 34461444637 32504825687
Investment income 7709248980 8480173878 6938324082
Commission, exchange & brokerage 6889922752 7578915027 6200930477
Other operating income 283667424 312034166.4 255300681.6
Total Operating Income (A) 16765920440 50832567709 45899380927
Salary and allowance 7374257001 7005544151 7742969851
Rent, Taxes, Insurance, electricity etc. 410285295 389771030.3 430799559.8
Legal expenses 38782497 36843372.15 40721621.85
Postage, stamp, telecommunication etc. 70943693 67396508.35 74490877.65
Stationary, Printing, Advertisement etc. 138374104 131455398.8 145292809.2
Chief Executive’s Salary and fees 9600000 9120000 10080000
Director’s fees 1729240 1642778 1815702
Auditor’s fees 855000 812250 897750
Charges on loan losses - - -
Depreciation and repair of bank assets 196779376 186940407.2 206618344.8
Other Expenses 1213847018 1153154667 1274539369
Total Operating expenses before 9455453224 8982680563 9928225885
amortization
Amortization of Intangible Assets 5000000000 4750000000 5250000000
Total operating expenses (B) 14455453224 13732680563 15178225885
Profit/ (Loss) before provision (C=A-B) 2310467216 37099887146 30721155042
Provision for loan - - -
Provision for diminution in value of (11200000) (10640000) (11760000)
investments
Other provision (55000000) (52250000) (57750000)
Total Provision (D) 66200000 62890000 69510000
Total Profit/(Loss) before taxes (C-D) 2244267216 37036997146 30651645042
Provision for taxation
Current tax (981948567) (932851138.7) (1031045995)
Deferred tax 274447959 301892754.9 247003163.1
(707500608) (672125577.6) (42875638.4)
Net Profit after Taxation 1536766608 37709122724 31394520680
Earnings Per Share (EPS) 17.08 418.9902525 348.8280076

In best case, we considered all the income are calculated as an increasing rate of 10% and all
the expenses as decreasing rate of 5%.

In worst case, we considered all the expenses as an increasing rate of 5%and all the income as
decreasing rate of 10%.

For the considerable percentages in best case EPS has increased 2453.10% and in worst case
the EPS is decreased 2042.31%.

Findings

As a largest commercial bank and the agent of Bangladesh Bank Sonali Bank has to do
various types of work without thinking about the profit. For this reason we have seen that in
some cases bank has doing loss, but this loss we directly cannot say that bank failing los, this
is happening only for helping the nation.

On the other hand we have seen that the bank profit increasing rate is poor but increasing.
The bank is highly liquid and earns much profit on owner’s equity. Bank’s operating
efficiency is good. EPS is increasing double per year and earning spread is also increasing.

So after all we can say that as a nationalized bank commercial bank Sonali Bank Limited is a
bank which is earning better than other nationalized bank.

Conlusion & Recomendation

Conclusion:

As a bank Sonali Bank Limited has to do a lot of things for the betterment of the country. The
Bank is strongly positioned in the market and with its core strengths it can match
shareholders’ expectations and thus raise their wealth in future through ethical banking and
best pricing. Thus, it has to take initiative so that it can fulfill the desire of the govt. as well as
people. It will enhance more public services and build up working teams to provide the best
services to its valuable customers. It must be run in organized way and discipline must be
ensured in all sphere of its performance. Efficient export team, import team and remittance
team must be formed and perform duties properly. More training, computerization, data
collection, market analysis and swiftness in servicing are essentially required. To do these the
recommended suggestions can be used. Although it is theoretical suggestions, it is not
valueless. It has great impact on the banking business and other sectors of the economy. For
this, govt. help is essential and it is expected that govt. will broaden its hand for
implementing the recommendations for the welfare of the people of Bangladesh.

Recommendation:
 The Top management of Sonali Bank Limited should be more effective to the employee
then current situation. Because they should take care the branch level employee’s benefits,
opportunities etc.

The bank has highly skilled employee in the branch level. But the bank should be able to
utilize these employees at appropriate way to take out the bank’s output.

The website design is need to improve. Therefore, the website should be changed and can
put more information about the bank. The existing design cannot capture the customer’s
attention.

The cheque’s design is poor. The good looking cheque design can motivate the customer.

The human resource division can be more effective. Because this human resource
department should think about the employee benefit much.

In the training institute, the training process should be used latest technology to provide to
the trainee. The bank should give training about the office package, basic idea on computer
and internet.

In the branch level when employees could transfer to another department during that time
that employee is needed at least ten days training according on the transfer position.

The higher management should be more effective about the employee, to take right
strategy, right decision making.

In the branch level employee is working so many extra time, so management should
provide some extra incentives to motivate the employee.

On-line banking is coming soon so the responsible employee should be trained effectively.

The training evaluation process and form is to be more modernized.

Physical and technological facilities should be increased in evaluating credit proposals.

Infrastructure should be modernized.

The cost of fund needs to be minimized.

The gap between employees and customers will be reduced through arranging meetings.