Chapter – ONE

INTRODUCTION

1|Page
Introduction
Economy is a complicated dynamic system of relationship between different agents of society
where bank play a vital role to mobilize the economy. In a dynamic economy, the banking
institutions make the monetary system more dynamic Modem economic functions are
meaningless and seedless without bank. To make the social system developed and dynamic no
one can deny the role of bank by any means Bunks at as a financial intermediary to mobilize
fund from the surplus to deficit economic units. Now a day's bank plays a vital role as leading
financial intermediary to meet the growing needs of every economy After the emergence of
Bangladesh, the banking system has expanded to a lot in the last three decades. Though many
private commercial bank have been established, the major portion of banking business is
covered by the four nationalized commercial bank such as Sonali, Janata, Agrani, and Rupali
Bank Ltd. In our country, Sonali Bank is treated as the leading banking institution after the
Bangladesh Bank
The National Bank of Pakistan the bank of Bahawalpur Ltd and the Premier Bank Ltd were
jointly declared as Sonali Bank by the Presidential order in 1972 Now, Sonali Bank continues
its operations with 1186 (after closing) branches Its head office is situated at Motijhel, Dhaka
Sonali Bank, BISE building Branch started its operation in 1984. It is situated in Cumilla: this
branch is headed by a senior principal officer and 28 employees This is one of the busiest
commercial Bank at area of “Board of intermediate and secondar education” in Cumilla town
This branch serves all types of loan facilities authorized by the head office. The special feature
of this branch is that it is declared as a special Collection branch by the head office, this branch
provides credit to fisheries project, Poultry firm etc. It also provides small loans.
All the financial transactions of Sonali Bank, Comilla BISE Building Branch is performed by
this branch Moreover, it provides banking facilities to the local businessmen of Cumilla Sadar
area. As a special deposit collection branch, it provides credit to more than 100 projects which
involved. Fisheries, Poultry etc. Besides all these facilities, this branch also provides OD
facility to its customers. Moreover, it provides the locker facility to ensure the security of the
valuables of its customers
Sonali Bank, BISE Building Branch is headed by a senior principal officer who acts as a
manager There are two principal officers, five senior officers, eleven officers, six Sub
accountants, others clerical and non-clerical employees work under branch manager. During
my training at Sonali Bank, Comilla BISE Building Brunch. I learnt about general banking
procedure such as: Cash receipt and payment, Remittance, Demand Draft (DD). Mail transfer
(MT). Check book issue, statement of affairs, Loans and advances, Token issue etc. Though!
have got an overall idea about banking.

2|Page
Objective of the Study
The objective of the study is to gather practice of all knowledge regarding business sector and
operations. Theory classes of BBA 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 observe the function of general banking system

• To evaluate the financial performance of Sonali Bank Limited
• To understand and analyze the financial strength of Sonali Bank Limited
• To inform the interested individuals of the present condition of Sonali Bank Limited.
• To present the basic information regarding the topic.
• To give the information about elements of banking sector.
• To learn application of the topic to various aspects of banking.
• Analyzing the implication of the financial indicators.

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 Fatema Tuz. Zohra Lecturer,
Department of Business Administration, Britannia University. 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.

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 performances
➢ Information availability
➢ Good communication system.
➢ Have a wide area of gaining knowledge
➢ Good working environment

3|Page
Methodology of the Study
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, 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.

Sources of Data
➢ Primary
➢ Secondary

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.
Lack of enough time: The report was prepared within a very short time considering the topics
related to report. That’s why; it wasn’t possible to demonstrate all aspects of the report.

Insufficient data: There was not sufficient information due to confidentiality of Sonali Bank
Limited. So, we cannot articulate information properly of that company.

Busy working environment: The officials had sometimes been unable to provide information
because of their huge routine work.

Lack of Experience: Though I have prepared many reports before, I had no experience of
internship. So, inexperience is one of the main constraints of the study

4|Page
 Chapter – Two

Literature Review

5|Page
Literature Review
Many researches have been conducted to measure the corporate disclosure of financial as well
as non-financial companies Generally, the financial performance of bank and other financial
institutions has been measured using a combination of financial ratios analysis, benchmarking
measuring performance against budget or a mix of these methodologies (Avkiran, 1995)
A research paper in the title of efficiency about customer service and financing performance
among Australian financial institutions (Elizabeth Duncan, and Elliott, 2004) showed that all
financial performance measures as interest margin, return on assets, and capital adequacy are
positively correlated with customer service quality scores. Bakar and Tahir (2009) in their
research paper used multiple analyses of linear regression technique and simulated neural
network techniques for predicting bunk performance.
Finally, the performance analysis is a way to measure a company's overall financial
performance by different ratios that allots company financial position. The analysts provide an
idea about company's operating efficiency and future prospects for financial performance
analysis, liquidity, profitability, activity and debt ratios are common Ratios are key indicator
that the performance of a company is poor or well. Pandey (2006) stated that the easiest way
to evaluate the performance of a firm is to compare its present ratio with the past ratio. It gives
an indicator of the direction of change and reflects whether the firm’s financial performance
has improved, deteriorated or remained constant over time. Connelt, et al. (2009) observed how
government ownership involvement in a country’s banking system affects bank performance
from 1989 through 2004. Their study uncovers an interesting pattern of changing performance
difference between state owned and privately owned banks around the Asian Financial Crisis.
They found that State-owned banks operated with less profitability, held less core capital and
had greater credit risk than privately owned banks prior to 2001 and the greater performance
differing more significant in those countries with greater government involvement and political
corruption in the banking system. Shleifer (1998) point out that private ownership should
generally be preferred to public ownership when incentive and contain costs are strong and
especially when competition between suppliers, reputation mechanism and possibility of
provision by private not-for-profit firms as well as political patronage and corruption are
brought into play. Chowdhury and Ahmed (2009) observed that all the selected private
commercial banks are able to achieve a stable growth of branches, employee, deposit, loans
and advances, net income, earning per share during the period of 2002-2006. They indicate that
the prospect of private commercial banks in Bangladesh is very bright. Chowdhury (2002)
observed that the banking industry of Bangladesh is a mixed one comprising nationalized,
Private and foreign banks. Many efforts have been made to explain the performance of these
banks. Understanding the performance of the bank requires knowledge about the profitability
and the relationship between variables like market size, banks risk and banks market size with
the profitability. Chowdhury and Islam (2007) stated that deposit and loan advances of
nationalized commercial banks (NCBs) are less sensitive to interest changes than those of
Specialized Banks (SBs).

6|Page
A research paper in the title of efficiency about customer service and financing performance
among Australian financial institutions (Elizabeth Duncan, and Elliott, 2004) showed that all
financial performance measures as interest margin, return on assets, and capital adequacy are
positively correlated with customer service quality scores. Bakar and Tahir (2009) in their
research paper used multiple analyses of linear regression technique and simulated neural
network techniques for predicting bunk performance. ROA was used as dependent variable of
bank performance and seven variables including liquidity, credit risk, cost to income ratio, size
and concentration ratio, were used as independent variables. O'Donnell and Van der
Westhuizen (2002) measured the efficiency of South African bank at branch level Their main
focus was investigating branches which were performing well and those that were doing badly,
where efficiency could be improved. They found that many branches were operating on a scale
that is too small and could increase their operational scales thereby improving the overall
efficiency of the bank but the empirical results of the researches (Raza et al, 2011. Tarawnch,
2006) explained that a company, which has better efficiency, it does not mean that always it
will show the better effectiveness However, the literature concerning the asset and liability
management for bank strongly suggests that risk management issues and its implications must
be concentrated by the banking industry (Jon R Presely, 1992) concluded from his study that
there is a need for greater risk management in relation to more effective portfolio management,
and this requires a greater emphasis upon the nature of risk and return in bank asset structure,
and greater diversification of assets in order to spread and reduce the bank's risks. Furthermore,
Ho and Zhu (2004) have reported that the evaluation of a company's performance has hech
fociaving the operational efficiencies and efficiency, which might influence the company's
survival directly.
Finally, the performance analysis is a way to measure a company's overall financial
performance by different ratios that allots company financial position. The analysts provide an
idea about company's operating efficiency and future prospects for financial performance
analysis, liquidity, profitability, activity and debt ratios are common Ratios are key indicator
that the performance of a company is poor or well.

7|Page
 Chapter – Three

Overview of SBL

8|Page
About Sonali Bank limited
Sonali Bank Limited is a state-owned leading commercial bank in Bangladesh. It is the largest
bank of the country Sonali Bank was established in 1972 under the Bangladesh Bank
(Nationalization) Order, through the amalgamation and nationalization of the branches af
National Bank of Pakistan, Bank of Bahawalpur and Premier Bank branches located in Pakistan
until the 1971 Bangladesh Liberation War When it was established, Sonali Bank had a paid up
capital of 30 million taka In 2001. Tes authorized and paid up capital were Taka 10 billion and
Taka 3272 billion respectively. Presently, it's authorized and paid up capital is Taka 10 billion
and Taka 9 billion respectively. The bank's reserve funds were Taku 60 million in 1979 and
Taka 2050 billion on 30 June 2000. The bank has been converted to a Public Limited Company
with 100% ownership of the government and started functioning as Sonali Bank Limited from
November 15, 2007 taking over all assets, liabilities and business of Sonali Bank. After
corporatization, the management of the bank has been given required autonomy to make the
bunk competitive & to run its business effectively. During 2013, $250,000 was stolen from the
bank by Cyber criminals using the Swift International payments network. In 2016, the Bank
signed a legal Memorandum of Understanding with PayPal. Sonali Bank has a total of 1211
branches Out of them, 343 are located in urban areas, 862 in rural areas, and 2 are located
overseas. It also operates the Sonali Exchange Company Inc in USA and Sonali Bank (UK)
Ltd., United Kingdom, to facilitate foreign exchange remittances. Sonali Bank UK remits up
to 14 destinations across Bangladesh directly, these include Dhaka, Chittagong, Sylhet,
Moulvibazar, Beanibazar, Balaganj, Biswanath, Jagannathpur, Sunamganj, Gopalganj.
Nabigonj, Hobigonj, and KulauraorTajpur There are currently three branches in the UK, one
located in Osborn Street, London, another in Small Heath: Birmingham and in Manchester
Sonali bank Limited is governed by a Board of Directors consisting of 11 members. It is headed
by the Managing Directors & CEO, who 1s a well -known Banker and a reputed professional.
The corporate head quarter of the bank is located at Motijhel, Dhaka, Bangladesh. The main
commercial center of the capital.

9|Page
Corporate Profile

Name of the Company : Sonali Bank Limited

Chairman : Mr. Ziaul Hasan Siddiqui
CEO & Managing Director : Mr. Md. Ataur Rahman Prodhan
Company Secretary : Mr. Tauhidul Islam
Legal Status : Public Limited Company
Emerged as Nationalized Commercial Bank in 1972,
Genesis : 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 Motijhel Commercial Area, Dhaka, Bangladesh
Authorised Capital : Taka 6000.00 Crore
Paid-up Capital : Taka 4530.00 Crore
Number of Employee : 19,609
Number of Branches : 1225
Phone-PABX : 9550426-31, 33, 34, 9552924
FAX : 88-02-9561410, 9552007
SWIFT : BSONBDDH
Website : www.sonalibank.com.bd
E-mail : itd@sonalibank.com.bd

10 | P a g e
Organogram of Sonali Bank Limited

11 | P a g e
Management hierarchy of sonali bank limited

12 | P a g e
Capital Structure:
Authorized Capital : Tk. 6000.00 Crore
Paid up Capital : Tk. 4530.00 Crore
Branches & Subsidiaries:
1 Total No of Branches 1225
a. No of Foreign branches 2
b. No of Local branches 1223
i) No of Rural Branches 756
ii) No of Urban Branches 467
2 No of Regional Offices 16
3 No of Principal Offices 46
4 No of G.M. Offices 11

Subsidiaries:
1. Sonali Exchange Company Incorporated (SECI) having 10 (Ten) branches in USA.
2. Sonali Investment Limited (Merchant Banking) having 4 (Four) branches at Motijhel,
Paltan, Uttara, Mirpur in Dhaka and 1 (One) branch in Khulna, Bangladesh.

Associates:
1. Sonali Bank (UK) Limited having 2 (Two) branches in UK.
2. Sonali Polaris FT Limited

Representative Offices : 3: 1(One) in Jeddah, KSA; 1 (One) in Riyadh, KSA and

1 (One) in Kuwait.
Correspondence : 639

13 | P a g e
Strategic significance of Sonali bank:
As a commercial bank, Sonali Bank has some core responsibilities toward customers,
management, shareholders and other business organizations. The bank is responsible for sound
customer satisfaction through quality and timely services Like every commercial bank this
bank has some common goals to be met In the present world, security is a common talk in
wealth preservation This bank helps clients to securitize their wealth through secure banking
system Sonali Bank helps the regional development of Bangladesh by the expansion of loan
portfolio to the business, Agri-sectors, industry. A unique feature of Sonali bank in that it works
in favor of Bangladesh bank by settling commercial transactions among commercial bank
known as clearing house. It has expanded its online services maintaining competition with
others commercial bank such online checking customers account, Issuing Visa and master card
to support online transactions, online settlement of customers account etc. The bank docs some
social services to create positive image in the country such as acceptance of scraped money,
providing scholarship facility to meritorious students Finally, the bank is serving society and
more responsive to the environment through innovation and challenges

Functions of Sonali Bank Ltd:

Main functions of Sonali Bank are
1. Deposit collection from customers.

2 Cash transactions through client's current account Attending bills of exchange and draft of
customers

3 Attending bills of exchange and draft of customers

4. Loan sanction

5 Provide online services to the customers,

6 Money transfer

8. Collecting different charges, interest dividends, rents, pension etc.

9. Acts as an advisor

10. During the food scarcity they wide food to the government

11. The participate in the urban tankini

12. They arrange pan-time hypothesis for the university's student.

13. They provide the primary teacher salary as a representative of the government

14.They distribute pension to the retired workers

14 | P a g e
Small & Medium Enterprise (SME): Sonali bank Limited emphasizes high priority on SME
financing for eliminating poverty Is increasing SME in flow an economically underdeveloped
area & people setting up priority base SME credit policy for women & underprivileged
Entrepreneur Somali Bank is working for the improvement of their socio- economic condition

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. Teamwork Open communication, discussion and interaction amongst the
employees would
Ethics: Everyone 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 resources 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

Core Strengths
➢ Transparent and Quick Decision Making
➢ Efficient Team of Performer
➢ Satisfied Customers
➢ internal Control
➢ Skilled Risk Management
➢ Diversification

15 | P a g e
Core Competencies:

• knowledge
• Experience & Expertise.
• Customer Orientation Focus
• Transparency Determination
• Zeal for Improvement
• Reliability
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 hunk in its dealings with customer, regulators and employees

Sources and Uses of Funds

Sources of Funds Uses of Funds

Authorized Capital. Cash in Hand.
Issued Capital. Balances in Current Account with other bank.
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.

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 towards 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.

16 | P a g e
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
Organizations 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).

17 | P a g e
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.
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.
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 bank world-wide it is
singularly handling the largest volume of export-import business including home-bound
remittances.
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:
1. Gas bills.
2. Electricity bills.
3. Telephone bills.
4. Water/Sewerage bills.
5. Municipal holding Tax.
6. Passport fees, visa fees and Travel tax.
7. Customs & Excise duties.
8. Source tax and VAT.
9. Jakat fund.
10. Hajj deposit.
11. Land development tax.

18 | P a g e
Payment:
1. Pension of employees of Government and other Corporate Bodies.
2. Bangladesh Bank employees’ pension.
3. Army pension.
4. British pension.
5. Students’ stipend/scholarship.
6. Govt. & Non-Govt. Teachers’ salary.
7. Food procurement bill on behalf of the Govt.
Social Services:
1. Old age allowances.
2. Widows, divorcees and destitute women allowances.
3. Freedom Fighters’ allowances.
4. Rehabilitation allowances for acid survival women.
5. Maternal allowances for poor women.
6. Disability allowances.
7. Sale & Encashment/Purchase:
8. Savings Certificates.
9. ICB Unit Certificates.
10. Prize Bonds.
11. Wage Earner’s Development Bonds.
12. US Dollar Premium & Investment Bond.
13. Lottery tickets of different Semi-Govt. and Autonomous Bodies.
14. Sanchaypatra.
15. Public Service Commission’s application form.
16. Judicial Service Commission’s application form.
17. Exchange of soiled / torn notes.
Miscellaneous Services
1. Bank A/C information of tax payee client according to demand of NBR.
2. Local Governance Support Project.
3. Enlist of Non-Government Insurance Company.
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

19 | P a g e
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 / bank
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.

20 | P a g e
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%

21 | P a g e
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:

Name Abo Eligibility Loa D Peri Secu In

ut n e od rity te
Li b re
mit t- st
e R
q at
u e
it
y
r
a
ti
o

Project For Entrepreneu Ma Maxi In

Financi gro rs, of them xim mum case
ng win at least two um 6 of
g with Tk. years proje 11
inter recognized 1.5 inclu ct %
nati degree 0 ding with
onal diploma in mill 8 1 own
mar computer ion. 0 year land
kets science or In : grace &
for electrical des 2 perio build
soft engineering ervi 0 d. ing
war / ng no
e telecommu cas colla
and nication/ap es, teral
data plied up secur
proc physics & to ity
essi electronics, Tk. other
ng forming a 10. than
this private 00 the
sche limited mill perso

22 | P a g e
me company ion nal
prov may apply. ma guar
ides Experience y be antee
long in related con of
term field will be side the
and preferred. red loane
shor rs is
t requi
term red.
cred Entre
it pren
facil eurs
ities offer
on ing
easi colla
er teral
term secur
s to ity
set will
up be
and prefe
run rred
IT or
base loan
d may
proj be
ects. consi
der
with
perso
nal
guar
anty
of
wort
hy
perso
n(s)
(thir
d
party
).

23 | P a g e
Export For Feasibly Tk. 9 L/C No 11
Financ exp implemente 1.0 0 or colla %
ing ort d and 0 : contr teral
of properly mill 1 act secur
soft staffed IT ion. 0 perio ity
war projects For d other
e with export larg plus than
and L/C or firm er 21 the
proc contract in con days perso
esse hand may trac but nal
d apply. t not guar
data Export hig exce antee
shor through her edin of
t satellite, am g the
term BTTB oun 180 loane
fina confirmatio t days rs is
nce n required. ma from requi
is y be the red.
exte con date But
nde side of for
d to red. disbu loan
exist rsem amo
ing ent. unt
IT exce
proj edin
ects. g
Tk.1.
00
milli
on,
colla
teral
will
be
requi
red.

24 | P a g e
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.
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.
Products & Services:

• Export Credit (Pre-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 & Traveler’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

• Import Letter of Credit

• Post Import Financing (LIM.LTRetc).
• Import collection services & Shipping Guarantees
Interest Rate: 12% to 14%

25 | P a g e
Export Finance:
Sonali Bank Limited offers extra cover to its customers for whole export process to speed up
receipt of proceeds the facilities are:

• Export Letters of Credit advising

• Pre-shipment Export financing
• Export documents negotiation.
• Letter of Credit confirmation,
Interest Rate: 7%+ 1% service charge
Industrial Banking
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 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 Bank’ Consortium.
• Financing Software Development and Data Processing
Designed Branches:
About 100 branches including all the corporate and district headquarters branches are
designated to handle industrial credit.
Thrust Sector
Besides the traditional and oft-trodden sectors, Sonali Bank 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.

26 | P a g e
• 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.

Merchant Banking

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. There shall be separate unit with separate personnel and designed area for the purpose of
Merchant Banking Operation.
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. The Merchant Banking Unit shall be equipped with necessary modern office equipment for
smooth functioning & efficient services to the clients;
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.

27 | P a g e
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

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 Total Money Given Bonus Total Money including

amounts types After 7 years Interest Amount 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

28 | P a g e
 1000 84000 26775 1900 112675

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 Total Money Given Bonus Total Money including

amounts types After 10 years Interest Amount 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

29 | P a g e
 9000 1080000 595980 10000 1685980

10000 1200000 662200 11000 1873200

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

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 Interest Total

rate Amount

Up to 6 months 4% 1000 51000

Up to 1 year but more than 6 5% 2500 52500

months

Up to 2 year but more than 1 6% 6000 56000

year

Up to 3 year but more than 2 7% 10500 60500

year

30 | P a g e
 Up to 4 year but more than 3 8% 16000 66000
year

Up to 5 year but more than 4 8.5% 21250 71250

year

Up to 6 year but more than 5 8.5% 31537 81573

year

Up to 7 year but more than 6 8.75% 39945 89945

year

Up to 8year but more than 7 9% 49628 99628

year

Including Bonus 372 100000

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.
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

31 | P a g e
 3000 4000 548115

4000 5000 730487

5000 6000 912858

6000 7000 1095230

7000 8000 1277602

8000 9000 1459974

9000 10000 1642345

10000 11000 1824717

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

32 | P a g e
 7000 8000 528647

8000 9000 604025

9000 10000 679404

10000 11000 754782

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

33 | P a g e
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.
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, :14.00%

September 2009)

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.

Loan Facility for Diagonstic Center:

34 | P a g e
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, : 14.00%

September 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.

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. :12.00%

01, September 2009)

Mode of repayment : Monthly installment.

Period of loan : Maximum 3 years.

Products purchased Personal computer, printer, scanner.

by the loan

35 | P a g e
 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 : All district branches and the corporate branches.

Branches

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, :12.00%

September 2009)

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.

36 | P a g e
 Chapter – Four

Methodology

37 | P a g e
Every research program should follow some basic form of procedures. I studied various books
& articles of different writers regarding the topic. However mainly this report is written on the
basis of experience gathered during the period of Internship. In order to make the report more
meaningful and presentable, two sources of data and information have been used widely. Both
primary and secondary data have been used to prepare the report.

Data collection
The data required for this study were collected from both primary and secondary sources;
however, the majority of the information was collected from secondary sources.

Classification Of data

Primary Data:
Official records of Sonali Bank Limited: When I preparing my internship report, I have
collected many official records from Sonali Bank limited. To prepare my internship report I
discuss with many employees who related to advance department.
Secondary Data:
a) Annual report: I have collected Sonali Bank Limited annual report of 2007, on the basis of
this report I prepared this internship report.
b) Working papers: I have collected working paper which is related with the subject matter
of report. The employees of SBL co-operate very much to prepare my internship report.
c) Office files: I got lots of information from office files of Sonali Bank Limited.
d) Selected Books: Preparing this report I got various help from lot of books. I have selected
few chapters which are relates of my subject matter, on the basis of this information I prepared
my internship report.
e) Printed forms: I have collected monthly and annually printed forms; on the basis of these
printed forms I prepared my internship report.

Analysis of data
The dataset covers the information of Sonali bank Limited over 2015-2019.The five-year
period covered the information on advertising, promotion, salary structure etc. It also includes
the performance measure ratios like ROE, ROA, and Assets etc.

38 | P a g e
Data Processing
There are some steps in this data processing process and those are given below.

➢ Collection: Firstly, I have collected all required data from different kinds of sources like
website, discussion etc.
➢ Preparation: Then I have prepared suitable data for further analysis and processing.
➢ Classification: After preparation then I have classified data based on their category.
➢ Cross Check: After making classification I made the cross check for data accuracy.
➢ Validity check: Then I have checked the validity of the given data.
➢ Final selection: After validated then I have selected the data for the final use in my report.

39 | P a g e