Internship Report

On
General Banking Activities of Sonali Bank limited , Bashabo
Branch, Dhaka

Submitted To:
Dr.Safayet Rahman

Assistant Professor
Southeast Business School
Southeast University

Submitted By:
Shahin Afrin Prity
ID: 2016210000011
44th Batch, Major: Accounting
Bachelor of Business Administration
School of Business Studies

. Southeast University

Date of Submissions: 10th October, 2020

1
 Acknowledgements

At the beginning, I would like to express my deepest gratitude to the almighty Allah for
giving me the strength and the composure to finish the report. Words actually will never be
enough to express the gratefulness of Allah. I feel satisfied and glad that I have been able to
complete the report on General Banking activities of Sonali Bank Limited Bashabo Branch. I
would like to thanks my parents for their never ending support.

Looking back on last one year I must say I do not regret one single moment of it. I would like
to express my special gratitude to our honorable Vice-Chancellor and respected head of the
Department of Business Administration & I would cordially like to give thanks my
supervisor Dr. Safayet Rahman, Assistant professor, School of Business Studies Southeast
University, for his motivating inspiration, kind direction, valuable suggestions & advices and
to prepare this report. I am grateful to the members and the Manager of SBL; they have given
their helping hand that helped me a lot to prepare this report.

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 Student Declaration

I hereby declare that the report of internship entitled “General Banking activities of Sonali
Bank Limited, Bashabo Branch.” was prepared by me after completing of 3 months of
internship with Sonali Bank Limited. I was tried my best to collect necessary information that
made the report specific and original. I also declare that the report is prepared for academic
purpose which is a part of BBA of Southeast University and I may assure you that the report
may not be used in actual market scenario.

Sincerely Yours,

--------------------

Shahin Afrin Prity

ID: 2016210000011

Batch: 44

Program: BBA

Major: Accounting, School of Business Studies

3
Certificate of the Organizational Supervisor

4
 Letter of transmittal

Date:
TO
DR. Safayet Rahmam
Assistant Professor
School Of Business Studies
Southeast University
Subject: Submission of Internship report on “General Banking activities of Sonali Bank
Bashabo Branch”.
Dear Sir,
It is my pleasure to submit my internship report title on “General banking activities of Sonali
Bank Bashabo Branch”. There I was assigned by you as a part of the internship. I had worked
in the bank for three months. This experience will help me developing professionalism and
have positive attitude towards business world.
I have tried my best to accumulate information that I believe relevant and insightful. It was a
great opportunity to apply some theoretical knowledge in the practical purpose. I have tried
my level best to give some suggestions for the betterment of the overall banking practice. I
hope they will be worthwhile.
It will be my pleasure to clarify any matter regarding this report I thank you for allowing me
the opportunity to undertake the task and for your sincere guidance and cooperation.
Sincerely Yours,
--------------------
Shahin Afrin Prity
ID: 2016210000011
Batch: 44
Program: BBA
Major: Accounting, School of Business Studies

5
 Letter of Endorsement by Supervisor

I hereby declare that the concerned report entitled in “General Banking activities of Sonali
Bank limited” is an original work by Shahin Afrin Prity, ID: 2016210000011, Batch: 44,
Southeast Business School, Southeast Univarsity. She has completed her internship under my
supervision and submitted the report for the partial fulfillment of the requirement for the
degree of Bachelor of Business Administration.

I also certify that I have gone through the draft report thoroughly and found it satisfactory
thus forwarded for presentation.

Dr. Safayet Rahman

Assistant Professor

Southeast Business School

Southeast University

6
 Content Page No

Chapter One : Introduction 10-17

1.1-Histrory Of The Sonali Bank Limittd 10

1.2-Objectives Of The Sonali Bank Limitted 10-11
1.3-Fuctions Of The Sonali Bank Limitted 11-13
1.4-Role Of The Sonali Bank Limited In The Economy 13-15
Development Of Bangladesh
1.5-Organogram Of The Sonali Bank Limitted 17
1.6-Present Programs Of The Sonali Bank Limited 18
Chapter Two: Activities Undertaken 18-34

General Banking Functions 18

Representative Functions 18-19

Public Utility Functions 19

Special Functions 20

Accounts Opening Section 21-25

Cash Section 25-26

Deposit Section 26-30

Bills And Clearing Section 31

Remittance Section 31-32

Accounts Section 32-33

Loan And Advance Section 33-34

Chapter Three 34

3.1: Constraints/Challenges And Proposed Course Of Action For 34

Improvement

7
Chapter Four 35
4.1: Lesson Learned From the Internship Program 35
List of Figures: 1.3 Functions of Sonali Bank Limited.

1.5 Organogram of the Sonali Bank Limited.

List of Abbreviations: *GDP(Gross Domestic Product).

* Short Term Deposit Account (STD).

* Fixed Deposit Receipts (FDR).

* Special Deposit Pension Scheme (SDPS).

* Sonali Deposit Scheme (SDS).

*Education Deposit Scheme (EDS).

*Medical Deposit Scheme (MDS).

*Deposit Pension Scheme(DPS)

*Sonali Bank Special Deposits & Pension Scheme(SDPS)

*Secured Overdraft (SOD)

*Cash Credit(CC)

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 EXECUTIVE SUMMARY

Internship program is the prerequisite tor the graduation in BBA. Classroom discussion alone
cannot make a student perfect in handling the real business situation, therefore, it is an
opportunity for the students to know about the real life situation through this program. A
report has to be built for the university and organization requirement. The topic of the report
is “General Banking Activities of Sonali Bank Limited.” The main purpose of the report
becomes very clear from the topic of the report. Generally, being an individual firm,
company or corporation generally dealing in the business of money and credit is called a
bank. In our country any institution that accept for the purpose of lending or investment
deposits of money from public, repays on demand or transfers by checks, draft orders & other
means is called a bank. Banking is the backbone of national economy. All sorts of economic
and financial activities revolve round the axis of the bank. As industries produce goods and
commodities, the bank create and control money market and promote formation of capital.
From this point of view, banking-a technical profession- can be termed as industry. Services

to its customer are the products of banking industry besides being a pivotal factor in

promoting capital formation in the country. As all economic and fiscal activities revolve
round the important Industry, the role of banking can hardly be over emphasized.

The Sonali Bank Limited emerges as a fast growing, leading and prominent bank in the
public sector to operate on the commercial arena of Bangladesh. The Sonali Bank Limited
has already occupied a challenging position among its competitors after achieving success in
all areas business operation. Sonali Bank Limited is serving the market with almost full range
of services. As the number of branches implies, still bank has limited operation in our
country, but it should also be noted that within the next few years from its establishment, no
bank could make as good standing as Sonali Bank Limited.

9
Chapter one: Introduction:

1.1 History of the organization:

Soon after independence of the country Sonali Bank emerged as the largest and leading
Nationalized Commercial Bank by proclamation of the Banks Nationalization Order 1972
(Presidential Order-26) liquidating the then National Bank of Pakistan, Premier Bank and
Bank of Bhwalpur. As a fully state owned institution, the bank had 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.

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 bank competitive & to run its
business effectively.

Sonali Bank Limited is governed by a Board of Directors consisting of 11 (Eleven) members.

The Bank is headed by the CEO & Managing Director, who is a well-known Banker and a
reputed professional. The corporate head quarter of the bank is located at Motijheel, Dhaka,
Bangladesh, the main commercial center of the capital.

1.2 Objectives of the organization:

The main objective of the organization is to provide all types of banking services at the door
of the people of the nation. The bank also participates in various social and development
programs and implements policies and commitments to the Government.
This study is intended for providing me valuable practical knowledge about banking
operation system in Bangladesh.

1. Know the activities of the bank in daily transaction.

2. Find out the loan disbursement performance of the bank.
3. Know the loan recovery performance of the bank.
4. Understand the deposit mobilization performance of the bank.
5. Learn the profitability performance of the bank.

10
6. Identify the effective interest cost and effective administrative cost.
7. Learn the productivity performance.

1.3: Functions of the Sonali Bank:

In our country’s economic acts Sonali bank is considered as a most important bank. Sonali
bank is doing so many things for our country. Commercial as well as all types of work is
done by the Sonali bank for the general people as own. So based on proceeding nature, it is
not possible to divide this bank perfectly. Even so for the convenient of the analysis this bank
is divided into four parts. This is described by the flowing chart:

1. General Banking Functions: as a general banking institute in our country Sonali

bank has to do the flowing works.

* Taking deposit and giving interest:

* Grant loan and collecting interest:

* Creation medium of exchange:

* Honour of cheque:

* Creation of loan deposit:

* Encourage to savings.

* Formation of capital and investment.

*Discount bill of exchange.

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 *Obey the scheduled rule.

2 .Representative functions: Sonali bank help the customer to transfer their money from
one place to another place by the money laundering, mail transfer and telegraphic
transfer.

*Acceptance of bill of exchange:

* Buying and selling of securities:
* Role as a trustee
* Representative of Bangladesh Bank:
* Payment of insurance premium.
* Payment to of tax to the government.
* Payment of rent
* Receiving of house rent.

* Receiving part of profit from the company.

* Receiving of investment profit.

3. Public utility functions: This Bank does so many beneficial works to the public as
a big commercial bank. These are described in the flowing:

* Protection of assets:
* Underwriter:
* Issue of solvency certificate:
* Counseling:
* Help in traveling:
4. Special functions: For the development of our country’s economy this bank does as
a big commercial bank in the flowing way:-
1. They help the import and export traders directly.
2. In the jute and tea sector and also for the development of the business they give much
more loan and advice.
3. They finance for the obsolete agricultural crops.
4. Though there is agricultural bank but this bank helps the farmers by giving them loan.

12
 5. During the food scarcity they provide food to the government.
6. They participate in the urban banking.
7. They arrange part-time hypothesis for the universities student.
8. They provide the primary teachers salary as a representative of the government.
9. They distribute pension to the retired workers.
10. They distribute and collect the form of passport.
11. They collect the abroad travel tax on behalf of the government.
12. They arrange the deposit pension skim for the convenient of the general people.
13. They collect government’s stamp duty and registration fee.
Sonali bank is doing every types of work for the development of the country as much as they
can. Bangladesh bank does so many developing works with the help of the Sonali bank. So it
is easy to say that Sonali bank is doing so many things for the development of the country.
1.4: Role of the Sonali Bank Limited in the economic development of Bangladesh: Sonali
Bank is mainstream of the financial system of a country. Sonli Bank system must be robust,
resilent and sound for efficient inter-mediation of financial resources. Lack of any one or all
these prerequisites would not bring only disaster for the country also cost the real sector. Our
government has taken various types of reform programs time to time making banking system
more effective so that positive impact of banking system on our everyday life in economic
activities can be more realized.

 Sonali Bank have played a vital role in economy by providing credit for
performing economic activities and at the sometime conglomerate the surplus
capital from general public through different types of depository incentives.
Hence we discuss the major sectors of economy like agriculture, industry,
business mentioned by Bangladesh Bank and how much wells banks perform
these sectors.
 Agriculture is the main sector of our economy. According to the new GDP
measurement system, it provides about 22 percent of our GDP. Though the total
amount of credit increases day by day, the portion of credit has decreased in
agriculture, fishery and foresty sector whether it has reduced into half at percent.
The rescue of agriculture revenue is hearty than others sectors and this credit
directly affects the agricultural production. At present 44 private and foreign

13
 commercial banks have to continue their activities. They contain collectively TK
20,365 crore as a deposit which is 35 percent of total credit. But Unfortunately,
they don't give any single coin to agriculture sector, as a credit.
 Industrial sector acts as a main sector of GDP in the developed countries but
unfortunately, this sector performance is very weak in our country and
participation of GDP in this sector is 17.79 percent. This sector gets the highest
credit from commercial banks.
 Business sector has become major role playing sector in our economy. Now-a-
days almost 14.47 percent of GDP comes from merchandise sector, which is lucid
from different statistical data. In 1981, One reason of gets more credit in business
sector is that the probability of default loan is comparatively low vis-a-vis other
sectors. But now-a-days, default culture has also increased in trading sector. Only
garments artistry takes on prominent credit is TK 786 crore and TK 878 crore
respectively provided by private and national commercial banks provide 24
percent of total credit in business sector and it is only 14.31 percent in case of
foreign banks.
 Sonali Bank is one of the main means of government by which government can
implement different types of step for eradicating poverty. As the branches of bank
are available everywhere from downtown area to remotest rural area government
uses this channel to provide any financial benefit quickly. Some projects are run
bySonali bank with the help of government to wipe-out poverty are as follows:
1. Rural poor co-operative project in greater Rajshahi, Kustia and Jessore area with
the help of Sonali Bank.
2. Self-reliance loan project through the self-reliance Bangladesh and financed by
Sonali Bank.
3. Small and marginal farming.
Foreign Commercial Banks have provided 39.9 percent of total credit in other sectors. In
this time National Commercial Banks and PCB's provided 7.15 percent of their total
credit and Private Commercial Banks provided 10.21 percent of total credit in other
sectors. Though banking sector is the life-blood of our financial system, functional arena
of bank is rather narrow than wide range and performance of handsome banks is not quite
good. Bangladesh government has taken different types of reform according to demand of
era, but this types of reform don't make our banking system international standard. But

14
we are not hopeless rather by taking steps we will reach our ambitious target.

15
1.5 Organogram of the organization:

1.6: Present Programs of the Sonali Bank Limited:

16
  Cash Transaction:
 Transfer Transaction:
 Clearing Transaction:
 Online Transaction:
 Money Transfer:
 Foreign Remittance:
 Online account opening:
# Account Opening:
*Current Account:

* Savings Account:
* SBMS (Sonali Bank millennium Scheme):
* SDS (Sonali Deposit Scheme):
* EDS (Education Deposit Scheme):
* MDS (Medical Deposit scheme):
* Allowance: Nowadays Sonali Bank offer various types of Allowance. Such
As: Old age allowance, Disability Allowance, Widow’s Allowance Liberation,
War Allowance
* Savings Certificate:
* Agent Banking:
* Ancillary Service:
* Locker:
* Automation Status:

* ATM services:
* ATM Locations:
* Online Tax Payment Procedures:
* NBR Sonali Bank e payment:
* SMS Banking

Chapter Two:

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2.1: Activities Undertaken: In this part I am describing the functions of Sonali Bank in
details.
1. General Banking Functions: as a general banking institute in our country Sonali
Bank has to do the flowing works.

 Taking deposit and giving interest: The main function of the Sonali bank is to
collect money from the general people, various institutes or organizations as
deposit and give them interest on that money by various accounts. This bank
collects current, saving and permanent accounts deposit. But they give more
interest on saving account than the current account. This bank generally doesn’t
pay any interest on the current account.
 Grant loan and collecting interest: Sonali bank gives the deposited money of the
general people to various people, institute and traders based on their need by a

fixed interest rate and they also take interest from them. They take a fixed security
amount against the loan. This bank takes more interest on loan than the interest
which is given to the general people on their deposited money.
 Creation medium of exchange: As a big commercial bank in the Bangladesh,
they make a convenient and feeless transition by offering cheque and bank-draft
etc. That is why customers can finish their exchange very easily.
 Honour of cheque: whenever the depositors want the money according to their
cheque, the bank is bound to pay the money to the customer. It is also their
important work.
 Creation of loan deposit: This bank not only gives the loan but also do so many
transitions. They make various loans by the deposit and increase the utility.
 Encourage to savings:
 Formation of capital and investment:
 Discount bill of exchange:
 Obey the scheduled rule:
2. Representative functions:
 Sonali bank help the customer to transfer their money from one place to another
place by the money laundering, mail transfer and telegraphic transfer.

18
  Acceptance of bill of exchange: This bank is given power from the customer to
give the exchange bill.
 Buying and selling of securities: Sonali bank buy-sell share, security, bond, loan
paper under the interest.
 Role as a trustee: Some times this bank does as a trustee of the customer wealth.
 Representative of Bangladesh Bank: The area where there is not any branch of
Bangladesh Bank there Sonali bank does their work as a representative of
Bangladesh Bank.
Others:
*Payment of insurance premium;
*Payment to of tax to the government;
*Payment of rent;
*Receiving of house rent;
*Receiving part of profit from the company;
*Receiving of investment profit;
3. Public utility functions: This Bank does so many beneficial works to the public as
a big commercial bank. These are described in the flowing:
1. Protection of assets: this bank arranges various types of lockers for the customer’s
gold, silver and important papers to reserve in safe.
2. Underwriter: This bank does as an underwriter between the government and the
company for selling their share security.
3. Issue of solvency certificate: This bank give a certificate as a confession on behalf of
the business customer.
4. Counseling: As an important bank, in the economic sector and in the trade sector this
bank works as an advisor.
5. Help in traveling: Sonali Bank helps the people in their traveling inside and outside
of the country by issuing draft, traveler’s cheque, cash etc.
4. Special functions: For the development of our country’s economy this bank does as
a big commercial bank in the flowing way:-
1. They help the import and export traders directly.
2. In the jute and tea sector and also for the development of the business they give much
more loan and advice.

19
3. They finance for the obsolete agricultural crops.
4. Though there is agricultural bank but this bank helps the farmers by giving them loan.
5. During the food scarcity they provide food to the government.
6. They participate in the urban banking.
7. They arrange part-time hypothesis for the university’s student.
8. They provide the primary teacher’s salary as a representative of the government.
9. They distribute pension to the retired workers.
10. They distribute and collect the form of passport.
11. They collect the abroad travel tax on behalf of the government.
12. They arrange the deposit pension skim for the convenient of the general people.
13. They collect government’s stamp duty and registration fee.
Sonali bank is doing every types of work for the development of the country as much as
they can. Bangladesh bank does so many developing works with the help of the Sonali
bank. So it is easy to say that Sonali bank is doing so many things for the development of
the country.

There are various departments in Sonali Bank, For instance- General Banking, HR,
Foreign Exchange. General Banking includes- STD, FDR, TT, DD, MT, and SALE OF
PRIZE BOND. Foreign exchange department deals with export and import. General
Banking department has sub department like- cash, account opening, clearing and
remittance. Cash department deals with all kind of cash transactions.

I am working in the department of general banking activities of Sonali Bank Limited.

General banking is the side where banking offer different alternatives to the clients to
deposit and remit their money. To encourage the clients, bank offers different options in
front of their clients. Most of these options are very much similar between the banks, but
the customer services and facilities may not be the same. Every branch of every bank has
to maintain the General Banking department. It takes care of lot of important banking
activities mainly collecting the deposit from customers. General Banking department is

20
mostly expected to maximize the number of customers. It is the introductory department
of the Bank to its customers. Sonali bank, principal branch has all the required sections
of General Banking.
Such as:
1. Accounts Opening Section
2. Cash Section
3. Deposit Section
4. Bills and Clearing Section
5. Remittance Section
6. Accounts Section
7. Loan and Advance Section
8. Foreign Exchange Section

Accounts Opening Section:

Account Opening is the gateway for clients to enter into transaction with the bank. It is
the foundation of banker-customer relationship. A customer can open different types of
accounts through this department. Such as-
 Current account.
 Savings account.
 Short Term Deposit Account (STD).
 Fixed Deposit Receipts (FDR).
 Special Deposit Pension Scheme (SDPS).
 Sonali Deposit Scheme (SDS).
 Education Deposit Scheme (EDS).
 Medical Deposit Scheme (MDS).

Current Account:
Current account is an account where the account holders can make numerous transactions
within a working day. There is no transaction on the number of deposit and withdrawals
from the current account within availability of funds. As the bank is under the obligation

21
to repay this deposit on demand, on interest is paid in this account. Generally, current
account is opened for businessmen and trades for easy transaction.
Requirements of Opening an Account:
There are some requirements that have to be completed for opening an account.
Proprietorship Firm:
There is account opening form for proprietorship firm provided by Sonali Bank. For this
account, a customer must need to submit the following papers with the form:
*Introduction of the account.
*Two photographs of the signatories duty attested by the introducer.
* Copy of trade license.

Partnership Firm:
There is account opening form for partnership firm provided by Sonali BankLimited.
Introduction for running an account is given in this form.
Enclose Documents for partnership account:

*Introduction of the account.

*Two photographs of the signatories duty attested by the introducerPartnership letter duty
signed by all partners.
*Partnership Deed duty certified by Notary Public.
*Copy of Registration (if any).
*Seal of the concern.
*Update Trade License.

Limited Company:
There is an account opening form used for limited company. There are two kinds of
limited company. The bank always takes precautions for opening this type of accounts.
Several documents submitted by the clients should be checked carefully by bank to be
legally in safe position.

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 Enclosed Document for Limited Co. Account:
 Introduction of the account.
 Two photographs of the signatories duty attested by the introducer.
 Signature and seal of the client.
 Trade license.
 Certified copy of memorandum and articles of association.
 Certificate of incorporation.
 Broad resolution for opening account duty certified by the chairman/ managing
director.
 List of directors along with designation and specimen signature.
 Certificate from the registrar of join stock company is entitled to commence business
(in case of public Ltd. Company.)
 Certificate from broad of investment (incase of joint venture or foreign )
 Work permit order from ministry of industry. (Incase of foreign nation.)
 Join venture agreement (incase of join venture.)
Savings Account (Individual/Join):
Savings account (SB) is means for the people of the people lower and middle classes, who
wish to save part of their incomes to meet their future needs and intended to earn an
income from their savings. From savings account the account holder can deposit money so
many times the holder wishes. But the holder can not withdraw money more that two times
in a week. Also the holder can not withdraw money more than 20,000 tk at a time without
any permission of the bank. The holder is given an interest on their deposited amount after
a certain period at a certain rate. The holders of this type of account are mainly students,
teachers, employees, householders. For opening of this type of accounts, the following
requirements are necessary:
 Photograph attested by the introducer.
 An introducer of Sonali Bank.
 For joint accounts, signatures of all the account holders are necessary.

Short Term Deposit (STD):

23
STD account is same as current account. Here money is kept for a very short time. A notice
is needed prior for withdrawal of money. Sonali Bank offers short time deposit to its valued
customers. Short-term deposit is the deposit where the interest is paid on monthly basis.
Fixed Deposit Account:
There are deposits which are made with the bank for a fixed period of specified in advance.
The bank does not maintain cash reserves against this cash deposit. And therefore, the bank
offers higher interest rate on such deposits. These deposits generally constitute 50% or
more of the total deposits. Usually, customers are allowed to open this account for a certain
period of time and the rate of interest varies in accordance with the terms of the specified
time. If any holder wishes to draw money before expire of time, he/she is not given the
entitled interest rate.

Issuing Cheque Book:

The following procedures are maintained to provide a cheque book.
 At first the customer will fill up a requisition form.
 The pages of the cheque book under issue shall be counted to ensure that all the
pages and bank requisition slip are intact. The name and account number shall be
written on the cover page of the cheque book and its requisition slip.
 The name and account number of the customer shall be entered in the cheque book
register against the particular cheque book series.
 Then the officer in charge signs the register, cheque book and the requisition slip.
 The cheque book is handed over to the customer after taking acknowledgement on
the requisition slip and the register book.

A cover file containing the requisition slip shall be effectively preserver as vouchers. If
the ledger keeper notices any defect, he/she will make a remarked to that on the
requisition slip and forwarding it to the cancellation officer to decide whether a new
cheque book should be issued or not.

Procedure of Closing an Account:

A customer may close his/her account ant time by submitting an application to the
branch. The customer should be asked to draw the final check for the amounts standing to

24
the credit of his/her account less the amount of closing and other incidental charge and
surrender the unused cheque leaves. The account should be debited for the amount of
closing charge etc. And the authorized officer of the bank should destroy unused cheque
leaves. In case of join account the application for the account should be signed by the
joint account holder.

CASH SECTION:
Bank as a financial institution, accept surplus money from the people as deposit andgive
them opportunity to withdrawn the same by cheque or by any other instrument.Among
the banking activities, cash department plays a vital role. It does the mainfunction of a
commercial bank e.g. receiving the deposit and paying the cash ondemand.
Cash Receiving Procedures:
The work of cash receiving counter is to examine the deposit slip. Depositor uses
theprescribed deposit slip supplying by the bank for depositing cash, cheque, draft;
payorder etc. in all types of deposit the teller must cheque the following things:

*The slip has been properly filled up. The title of the account and its number.
*The amount in figure and in words is same.
*Instrument signed by the depositor.
*Data of the instrument
Dishonor of Cheque:
*A banker can dishonor a cheque in the following situation:
*Insufficient fund.
*Payment stopped by drawer.
*Alternation require in drawer signature.
*Effect not clear in the cheque.

*Exceed arrangement in cheque.

*Fill cover note received.
*Payee’s endorsement irregular/illegible/required.
*Drawer signature different and required.

25
*Cheque is postdate/mutilated/out of date.
*Clearing stamp required cancellation.

*Cheque crossed “accounts payee only”.

*Collecting bank’s discharge irregular/ required.

DEPOSIT SECTION:
Deposit is the lifeblood of the bank. From the history and origin of the banking system,we
know that deposit collection is the main function of a bank. The officer of the deposit
section maintains account number of all the customers of the bank. They use different
code number for different account. The officer makes position three types of transactions
such as cash, clearing and transfer section. This section performs the following tasks:

*Post kind of transactions.

*Provide on demand report.
*Cheque maintenance.
*Preparation of day transaction position.
*Preparation of closing monthly transaction position
Types of Deposit by Sonali Bank:
Deposit is considered as lifeblood of a bank. No bank can run without deposit. A bank has
to collect deposits from various sources in order to operate its activities successfully as
well as to satisfy the national objectives. As a nationalized commercial bank, Sonali Bank
tries to satisfy the above mentioned objectives. The Bank has deposits of the following
types:

 Fixed Deposits

 Short Term Deposits (STD)

 Deposit Pension Scheme (DPS)

26
  Bank Special Deposits & Pension Scheme (SDPS)

 Saving Deposits

 Currents Deposits

 Call Deposits

 Sundry Deposits
A brief Discussion on Various Types of Deposit by the Bank is given below:
Fixed Deposit : Fixed deposit is very popular to fixed income earners. A depositor has to
deposit money with bank at a time. The deposited amount is drawn at the end of maturity
of the contract. But in case of emergency a depositor can withdraw money before
maturity. The interest rate on fixed deposit varies according to the duration of deposits.
Characteristics of Fixed Deposit:

 Fixed deposit may be of different terms.

 The bank issues a receipt rather than check to the depositor. The receipt is called
fixed deposit receipt (FDR).

 FDR is the most transferable.

 FDR can be used as security against loan.

 Interest rate on fixed deposit is usually higher than other deposit.

 Bank can invest fixed deposits for the long term.

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  Fixed deposit is the suitable for retired person, Insurance holder.

Short Term Deposit:

This item includes the deposits which are deposited for a period 7 days to 89 days. These
types of liabilities are payable by a special notice or after specified period. Some of these
types of deposits are the nature of time deposits. Its interest rate is 3%.

Deposit Pension Scheme (DPS):

It is a government program. Government of Bangladesh started the program in 1983.DPS
was fully stopped in 1994 by the Bangladesh bank circular. Here the deposit limit istk.100
to tk.500 for a period of 10yrs and 20yrs.Interest on the invested amount will become
pound at the rate 15% and calculated on yearly basis.
Sonali Bank Special Deposit and pension Scheme (SDPS):
Now the days Sonali Bank offer a Deposit pension scheme named Sonali Bank Deposit
and pension scheme (SDPS) started from 1996. Generally service holder operates this
account. Interest rate of SDPS is: 5 years10%, 10 years12%.It also have been stopped in
the year 2000

Savings Deposit:
Generally individuals or service oriented organization use savings deposit. This type of
depositor can deposit money as much time as he or she wants in a working day. But he
cannot withdraw his or her deposited amount frequently
Characteristics of Saving Deposit:

*Banks pays 3.5% interest on savings deposit

*Minimum Tk. 100/- is required for initial deposit.

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*Savings deposit is suitable for service holder person of middle level incomestudents,
Teachers, Laborers etc

Current Deposit:
The persons or institutions which need frequently to deposit or withdraw money are the
users of current deposit. Generally businessmen use current deposit. This type of
depositor can deposit or withdraw money as much time as he needs in a working day
without giving any notice to the bank.
Characteristics of Current Deposit:
 No interest is paid on current deposit
 Initial amount of current deposit has to be deposited in bank tk.1000.
 Bank cannot invest current deposit. Because bank has to pay the deposited amount
on demand.
 This type of deposit is suitable for businessmen, industrialists, government, non-
government and autonomous body.

Call Deposit:
Bank mobilizes tender or earnest money as call deposit. Bank pays no interest on call
deposit.
Sundry Deposit:
Sundry deposit is also called special purpose deposit. Sundry deposit includes the
followings:-

 Margin on Letter of Credit

 Margin on Letters of Guarantee

 Hajj Deposits

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  Employee’s Contributory Provident Fund

 Employee’s General Provident Fund

Bills and Clearing Section:

For safety and security in financial transaction people use financial instrument like DD,
PO, and cheque etc. commercial banks collect these financial instruments on behalf of
their customers. This process that the bank use to collect and clear on behalf their of their
customer’s account, is known as clearing and collection. At Dhaka Bangladesh
Bank plays the role of Clearing House for all banks. The area where Bangladesh bank is
not available sonali bank plays the role of clearing house on behalf of Bangladesh bank.
The main function of this section is to collection instrument on behalf of the customers
through Bangladesh bank clearing house, outside bank clearing (OBC), Inter branch
clearing (IBC). Upon receipt of the instruments this section examines the following
things:
 Whether the paying bank within the Dhaka
 Whether the paying bank outside of Dhaka
 Whether the paying bank is its own branch.
Remittance through a Foreign Bank:
The remitter can send money through any financial institution which branches in both
countries. In this case, the bank in Bangladesh receives the amount from its foreign
branches and then transfers it to the bank where the client wishes to draw the money. Here
the bank needs to fill up a C’ from if the amount of money is $2,000 or more. It is done for
the declaration for remittance received from foreign country in the amount of $2,000 or
more.
Local Remittance:
When money is transferred through one place to another place within the country, it is
called local remittance. Sonali Bank has highest number of branches all over the country
and offers various kinds of remittance facilities to the public. The main instruments issued
by sonali bank for remitting funds are:

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  Pay-Order (PO).
 Demand Draft (DD).
 Telegraphic Transfer (TT).
 Mail Transfer (MT)
Pay- Order (PO):
Payment order is an instrument that is used to remit fund within a local area i.e. within the
same clearing house area. For example, if we want to remit fund from one place of Dhaka
to another place, we generally use payment order.
Demand Draft (DD):
It is an instrument that is drawn on one banker office to another or other banker’s branch
to pay certain sum of money to the named person. It is generally used to remit fund from
one corner of the country to another. For example, if we want to remit fund from Dhaka
to khulna we use DD. DD is very popular instrument for remitting money from one
corner of the country to another.

Telegraphic Transfer (TT):

Sometimes the remitter of the fund wants the money to be available to the receiver’s
account immediately. In that case bankers arrange to remit fund telegraphically. Here the
remitter bears the additional charge for telex/telephone.
Mail Transfer (MT):
It is an instrument that is drawn by one banker office on another or other banker’s branch
to pay certain sum of money to the named person. This instrument is not given to the
holder but the bank carries it and a message is sent to the particular branch. It is generally
used to remit fund from one corner of the country to another.
Account Section:
This is a very much crucial section for each business concern. As such this is a crucial
department for a commercial bank. Records of all the transactions of every department
are maintained here. Accounts section verifies all financial amounts and contents of
transactions. Every working day all the account is balanced and reconciled to remove any
discrepancy.

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The overall activities of account section are as follows:
 Record all transaction in the cash book.
 Record all transaction in general and subsidiary ledger.
 Prepare daily fund function, weekly position, periodic statement of affairs etc.
 Prepare necessary statement for reporting purpose.
 Make salary statement and pay salary.
 Pay all expenditures on behalf of the branch.
 Branch to branch fund remittance and support for account treatment
 Budgeting for branch.
 Make charge for different type of duties.
Loan and Advance Section:
For any commercial bank deposit and loan are two important sections. To service in the
market banks have deal with the deposited money. They have to use the deposit
efficiently in profitable sector. So dealing with the loan is very crucial for the bank.

Classification of Loans & advances:

Sonali bank offers following types of loans and advances;

*Secured Overdraft (SOD)

*Cash Credit (CC)

*Mid- term loan

*Demand loan

*Small loan

*Customer loan

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*Industrial loan

*Bills purchased & discounted

*Staff loan.

*House building loan

*Transport loan

Chapter Three:
3.1: Constraints/Challenges and proposed course of action for improvement:
*First day of my internship I had become very worried because here environment totally
new for me. All people are unknown to me. After reached at office everybody
continuously asking me various types of question and I have tried all question’s answer
given properly.

*When I was working most of the customer asking me about their banking related issue.
So I could not properly concentrate of my work.
* In this pandemic situation I could not go to the bank daily .
*As I was interned at Sonali Bank so that they could not give me the opportunity to use
their actual banking softwares.
* They could not provide some confidential papers and information about their banking
activities.
* I could not talk with the account section. Because always there were busy their with
work.
Chapter Four:
4.1: Lesson Learned From the Internship Program:

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*I learned from this internship Program various types of general banking activities of
Sonali Bank Limited. These are given below:
# How to open a bank account.
# How to fill out a bank account book.
# All that is required for an account holder to open an account: Two copies of the
applicant photo, Photocopy of voter id card or passport or Driving license along with
original copy, One copy studio print photo of nominee.
#Clearing: Cheque clearing or bank clearance is the process of moving cash (or its
equivalent) from the bank on which a cheque is drawn to the bank in which it was
deposited, usually accompanied by the movement of the cheque to the paying bank, either
in the traditional physical paper form or digitally under a cheque truncation system. This
process is called the clearing cycle and normally results in a credit to the account at the
bank of deposit, and an equivalent debit to the account at the bank on which it was drawn,
with a corresponding adjustment of accounts of the banks themselves. If there are not
enough funds in the account when the cheque arrived at the issuing bank, the cheque
would be returned as a dishonored cheque marked as non-sufficient funds.
# Voucher Checking.
# Daily transaction entry.
#Submission book entry.
Chapter five:
5.1: Concluding Statements:
A nation’s economic development largely depends on the banking system. Sonali Bank
Ltd. is one of the leading banks in banking sector of our country which are providing
typical banking facilities as well as numerous financial services to the common people.
Sonali Bank Limited invested extra finances in export and import groups. It is obvious
that the proper deliberating this bank consisting of setting up a successful community
over the country and growing sources could be capable of pay a large position in the
portfolio of improvement. Successes inside the banking commercial enterprise in large
part rely on effectively lending and well timed ensure healing. Big quantity or
contribution on remittance as well as the overall activities will enhance the monetary
improvement in national and international angle and the financial institution itself as a
mark of supplying offerings to the clients. Every service provider companies have

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limitations. Sonali Bank has too, but the bank has bigger responsibilities towards clients.
The bank can add up more products or service schemes so that the bank can fill up the
expectations of people that it has obtained throughout the year. Besides that, the bank
authority should monitor and provide necessary directions to the officials to get the
desired result.

Chapter Six: Suggestions for improvement or course of action:

In this Section I am giving some recommendation from my personal opinion of sonali
Bank Limited:
 The branches should be developed.
 The branch's technology should be increased because the customers are changing.
 The online service should be started for quick service.
 Branch decoration and the customer hospitality service should be developed soon.
 The Bank should Decrease the loan sanction time.
 The bank's rules and condition are very strong, so the customer pays their loan for
facing lots of problem.
 Increase the ATM booth.
 Bank should be increased the amount of Q cash withdrawn from the booth.
 The bank activities should up dated compare with the other bank.

References:
 Subject : Banking,Topic:Article.
 Subject: Banking, Topic: Internship report.

 https://www.sonalibank.com.bd/overview.php
 https://www.sonalibank.com.bd/

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