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Internship Report on Financial Performance Analysis of Sonali Bank Limited

1.1 Introduction of the Report Banks play the most important role in the economy. Banks collect money from the individuals and lend them to others. Now banks offer the widest range of financial services and perform lots of financial functions. Thus banks have proven that they are the key factor for the business and economy as well. Sonali Bank Limited is the largest banking institution in Bangladesh, dynamic in actions, honest in dealings, just in judgment, fair in approaches and devoted to high uality service to customers and thereby contribute to the growth of !"# of the country throughout stimulating trade and commerce, boosting up e$port, poverty alleviation, raising living standard of limited income group and overall sustainable socio%economic development in the country. To achieve the aforesaid objectives of the Bank, different banking activities must play an active role to provide the financial assistance to the customer who also helps them by providing them with management assistance when needed. Sonali Bank Limited has played this role with their e$periences in the banking sector where the others are not merely performed. The internship report comprises a brief study on the Sonali Bank Limited during three months internship. The report is distributed in many parts according to nature and re uirement of organi&ation and according to the instructions of supervisor of report. 1.2 Justification of the study 'nternship #rogram is a mandatory program for all students of B.B.( under National )niversity. #ractical orientation is a positive development in professional area. *ecogni&ing the importance of practical e$perience, "epartment of Business (dministration has introduced a one to three months practical e$posure as a part of the curriculum of Bachelor of Business (dministration. +or the completion of this internship program ' have chosen a bank named ,Sonali Bank Limited- and my internship report is based on ,+inancial performance analysis of Sonali Bank Limited-. ' have prepared this report under .r. Sohel (hmed, Lecturer, "epartment of Business (dministration, "haka /ity /ollege. 'n the study period, mainly student gain theoretical knowledge but now a day, in the job market there is no substitute of principle work e$perience. Therefore, before getting into job, students should have some real world e$perience in the major field of study on the career choice that interest him0her. 1.3 Objective of the Study The objective of the study is to gather practice of all knowledge regarding business sector and operations. Theory classes of B.B.( provide us theories regarding business sector and practical orientation gives us the chance of view those systems and their operations. .ore precisely we can identify those objectives1

To gather the practical e$perience base on the theoretical knowledge. To habituated with the corporate environment and culture. To serve the function of overall banker customer relationship. To observe the function of general banking system. To evaluate the financial performance of Sonali Bank Limited. To observe the function of merchant banking operations. To understand and analy&e the financial strength of Sonali Bank Limited. To observe the function of foreign e$change department. To learn and ac uainted to fulfill the academic purpose. 1.4 Scope of the Study (s ' was an intern, my scope was limited and restricted for some purpose. ' 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. (t last the financial position of the bank in the banking industry based on its last couple of year2s performance. 'nformation availability. !ood communication system. 3ave a wide area of gaining knowledge. !ood working environment. 1.5 Methodo o!y of the Study ' have designed this report as an e$pletory research paper. 3ere ' have discussed the general banking system of Sonali Bank Limited and critically analy&e the banking procedure with the standard one as per theoretical framework. +or this purpose ' use my personal observation during my internship program. Through conversation with the different level officers of the Bank, ' also gather knowledge about the general banking system. +or theoretical framework, ' go through a number of credit related books, financial management books, business communication book, foreign e$change manuals, Bangladesh Bank guidelines. 1." Sources of the Infor#ation +or smooth and accurate study everyone has to follow some rules and regulations. The study inputs were collected from two sources1 Primary Sources:

#ractical desk work. +ace to face with officers. +ace to face conversation with the client. +acing some practical situation related with the day to day banking activities. Secondary Sources: (nnual *eport of Sonali Bank Limited. Brochures. 4ebsites. 1.$ %i#itation of the Study (ny research work needs high degree of involvement regarding collection of information, creation of data base, literature review and analysis of data. 4hile doing so, many limitations arise even though we always put our best effort to avoid them. 'n conducting the present study, the following limitation has been faced. The personnel of the organi&ation did not want to disclose the classified information to the outsiders. "ue to lack of e$perience, there is a chance of having some mistake in the report though best effort has been applied to avoid any kind of mistake. ' have faced major limitation in the financial projection as my estimate was rather informative base than of actual one. Time was not sufficient to make an in depth study on such issue. 2.1 &efinition of 'an( !enerally Bank is refers to an 5rgani&ation that deals with money. The definition of Bank may be as follows1 As per Bank Companies Act 1991: Bankin Company means any company which transacts the business of banking in Bangladesh and includes a new bank and speciali&ed bank. Bankin means the accepting for the purpose of lending or institute of deposit of money from public repayable on demand or other wise and withdraw able by draft, order o otherwise. Pro!ided "y Famous #ncyclopedia

( commercial banker is a dealer in money in substitutes for money, such as che ue or bill of e$change.$)e* +ncyc opedia 'ritannica. 6stablishment for custody of money which it pays out on customers order. % ,he )e* O-ford +ncyc opedia &ictionary.

Pro!ided "y an &rdinances: Banker includes a body of person whether incorporated or not, who carry on the business of banking.$+n! ish 'i s of +-chan!e .ct/1002. ( bank is a person or corporation carrying on bonafide banking business. / +n! ish 1inance .ct. Pro!ided "y Bankin Institutes: ( bank performs an essentially distributive task, service or acts as an intermediary between borrowers 7 lenders. 'n broader sense, however, a bank can be considered the heart of a comple$ financial structure. 2.#erican Institute of 'an(in!. Pro!ided "y Famous #conomist:

A Bank is an institution whose debts are widely in sell element of other people debts to each other. 2 R.S. Sayers. A Banker is a dealer in debt his own and other peoples. 2 3ro*ther. A Bank is a financial intermediary a dealer in loans and debts. 2 3airn 3ross. 2.2 Objective of a 'an( The objectives of a Bank can be looked at from 8 different perspectives of the 8 key parties to the banking activities% Bank owners, the !overnment and The bank clients. From the o'ner(s perspecti!e: i) #arnin Profit: 9ust like any owner of a commercial institution, a bank owner2s main objective is to earn profit, which is achieved mainly through monetary e$changes. ii) Renderin Ser!ice: Banks #rovide "ifferent types of services to the government and people of the country. iii) *ood'ill: 'n order to earn profit through rendering services, banks need to have a lot of goodwill, may be a bit more than other commercial institutions.

i!) Raisin #fficiency: To earn ma$imum profit, banks need to provide efficient service, for which they re uire e$pert workforce. From the *o!ernment(s Perspecti!e: i) Issue of +otes , Currencies: Since civili&ations have moved along from the barter system, it has been the objective of the !overnment of different countries to provide its economy with a proper e$change media through issuance of notes 7 currencies through bank, which also take upon the duty of maintaining the system. ii) Capital formation: The !overnment wants that bank assist in the macroeconomic objective of capital formation by encouraging people to participate in savings. iii) Capital In!estment , Industriali-ation: the !overnment, as a part of their secondary macroeconomic objective, wants the bank to assist in capital investment 7 industriali&ation by lending out their accumulated capital. i!) .oney .arket Control: !overnment tries to stabili&e the money market through banks. !) #mployment: (s part of their primary macroeconomic objectives, they e$pect banks to provide employment for its people. !i) Ad!ice on Financial .atters: Since banks hire a lot of financial e$perts and advisors, it often seeks advice from banks to help them develop policies. From the Bank Client(s Perspecti!e: i) /eposit: 5ne of the bank2s main objectives is to accept its clients2 deposits. Like bank clients also want to deposit money with a competitive rate of interest. ii) Safety: #roviding safekeeping of its client2s monetary possessions and valuables is another one of banks essential objectives. iii) Ad!isors , Consultants: Banks provide its clients with advisors and consultants to help them chalk out an appropriate savings plan. i!) Representati!es or 0rustees: Both the clients and government rely on the bank to act as their representatives and trustees of monetary e$change activities. !) Raisin li!in standard: By providing interests against their deposits, banks help their clients to improve their living standards. 2.3 'usiness of 'an(in! 3o#pany 1BA+2 C&.PA+3 AC0 1991): 'n addition to the business of banking a bank company may engage in any one or more of the following forms of business1 a4 the borrowing, raising or taking up of money:


the lending or advancing of money either upon or without security:

c4 the drawing, making, accepting, discounting, buying, selling, collecting and dealing in bills of e$change, hoondees, promissory notes, coupons, drafts,bills of lading, railway receipts, warrants, debentures, certificates, participation term certificates, term finance certificates, musharika certificates, modareka certificates, such other instruments as may be approved by the Bangladesh Bank, and such other instruments and securities whether transferable or negotiable or not: d4 e4 f4 !4 the granting and issuing of letters of credit, traveller2s checks, and circular notes: the buying, selling and dealing in gold and silver coins and coins of other metals: the buying and selling of foreign e$change including foreign bank notes: the ac uiring, holding, issuing on commission, underwriting and dealing in stocks,

funds, shares, debenture stock, obligations, participation term certificates, term finance certificates, musharika certificates, modareka certificates and such other instruments and investments of any kind as may be approved by the Bangladesh Bank: h4 the purchasing and selling of bonds, scrips or other forms of securities, participation term certificates, term finance certificates, musharika certificates, modareka certificates and, on behalf of the constituents of the Bangladesh Bank or others, such other instruments as may be approved by the Bangladesh Bank: i4 the negotiating of loans and advances:

j4 the receiving of all kinds of bonds or other valuables on deposit or for safe custody or otherwise: (4 4 providing vaults for the safety of the deposits: the collecting and transmitting of money against securities:

#4 acting as agents for the !overnment, local authorities or any other person: n4 the carrying on of agency business of any description including the clearing and forwarding of goods and acting as a law agent on behalf of customers, but e$cluding the business of a managing agent or treasurer of a company:


contracting for public and private loans and negotiating and issuing the same:

p4 the effecting, insuring and underwriting of shares, stocks, debentures, debenture stock of any company, corporation or association and the lending of money for the purpose of any such issue: 54 the carrying on and transacting of every kind of guarantee and indemnity business:

r4 the buying and ac uiring of any kind of property including merchandise, patents, designs, trademarks and copyrights, in addition to, at the normal business period of a bank, such or similar transactions as% ;< repurchase =< selling in the 8< repayment >< ?< sharing @< financing in any other way: by way of out the seller, called purchase on rent, outstanding rates, leases, of revenues, or or or or or

s4 bringing into possession any property which may satisfy or partly satisfy any of the claims of the banking company and the managing and borrowing of such property: t4 ac uiring, holding and managing of any property or any right, title or interest in any such property which may form the security or part of the security for any loans or advances or which may be connected with any such security: u4 undertaking and e$ecuting trusts:

v4 undertaking the administration of movable and immovable property as e$ecutor, trustee or otherwise: *4 for the benefit of employees or e$%employees of the banking company or the dependants and connections of such persons% ;< establishing and supporting, or aiding in the establishment and support of associations, institutions, funds, trusts or any other establishment: =< granting pensions and allowances: 8< making payments toward insurance: >< subscribing to any e$hibition or any object generally useful: ?< guaranteeing money for all these purposes. -4 the ac uisition, construction, maintenance and alteration of any building or works necessary or convenient for the purpose of the banking company: y4 selling, improving, managing, e$changing, leasing, mortgaging or otherwise transferring or turning into account or otherwise disposing of all or any part of the property or rights of the banking company: 64 ac uiring and undertaking the whole or any part of the business of any person or company, when such business is of a nature enumerated or described in this subsection: aa< doing all such other things as are incidental or conducive to the promotion or advancement of the business of the company: ab< any other form of business which the !overnment may, by notification in the official !a&ette, specify as a form of business in which it is lawful for a banking company to engage. 2.4 .n Overvie* of 'an(in! Operation in 'an! adesh

The development process of a country largely depends upon its economic activities. Banking is a powerful medium among other spheres of modern socio%economic activities for bringing about socio%economic changes in a developing country like Bangladesh. Three different sectors like socio%economic changes in a developing country like Bangladesh. Three different sectors like (griculture, commerce, and industry provide the bulk of a country2s wealth. 4ith the passage of time the functions of the bank has got a multi%dimensional configuration. 5f all the functions of a modern bank, lending is by far the most important. They provide both short%term and long term credit. The customers come from all walks of life, from a small business a multi%national corporation having its business activities all around the world. The banks have to satisfy the re uirements of different customers belonging to different social groups. To regulate the activities of other banks, al the commercial private and0 or nationali&ed, and speciali&ed banks perform service related activities within the jurisdiction of the /entral Bank. 'n our /ountry, Bangladesh the role of the central bank is entitled to be e$ecuted by Bangladesh Bank. The banking system at independence consisted of two branch offices of the former State Bank of #akistan and seventeen large commercial banks, two of which were controlled by Bangladeshi interests and three by foreigners other than 4est #akistanis. There were fourteen smaller commercial banks. Airtually all banking services were concentrated in urban areas. The newly independent government immediately designated the "haka branch of the State Bank of #akistan as the central bank and renamed it the Bangladesh Bank. The bank was responsible for regulating currency, controlling credit and monetary policy, and administering e$change control and the official foreign e$change reserves. The Bangladesh government initially nationali&ed the entire domestic banking system and proceeded to reorgani&e and rename the various banks. +oreign%owned banks were permitted to continue doing business in Bangladesh. The insurance business was also nationali&ed and became a source of potential investment funds. /ooperative credit systems and postal savings offices handled service to small individual and rural accounts. The new banking system succeeded in establishing reasonably efficient procedures for managing credit and foreign e$change. The primary function of the credit system throughout the ;BCDs was to finance trade and the public sector, which together absorbed C? percent of total advances. The government2s encouragement during the late ;BCDs and early ;BEDs of agricultural development and private industry brought changes in lending strategies. .anaged by the Bangladesh Frishi Bank, a speciali&ed agricultural banking institution, lending to farmers and fishermen dramatically e$panded. The number of rural bank branches doubled between ;BCC and ;BE?, to more than 8,88D. "enationali&ation and private industrial growth led the Bangladesh Bank and the 4orld Bank to focus their lending on the emerging private manufacturing sector. Scheduled bank advances to private agriculture, as a percentage of sectoral !"#, rose from = percent in +G ;BCB to ;; percent in +G ;BEC, while advances to private manufacturing rose from ;8 percent to ?8 percent. The transformation of finance priorities has brought with it problems in administration. No sound project%appraisal system was in place to identify viable borrowers and projects. Lending institutions did not have ade uate autonomy to choose borrowers and projects and were often instructed by the political authorities. 'n addition, the incentive system for the banks stressed disbursements rather than recoveries, and the accounting and debt collection systems were inade uate to deal with the problems of loan recovery. 't became more common for borrowers to default on loans than to repay them: the lending system was simply

disbursing grant assistance to private individuals who ualified for loans more for political than for economic reasons. The rate of recovery on agricultural loans was only =C percent in +G ;BE@, and the rate on industrial loans was even worse. (s a result of this poor showing, major donors applied pressure to induce the government and banks to take firmer action to strengthen internal bank management and credit discipline. (s a conse uence, recovery rates began to improve in ;BEC. The National /ommission on .oney, /redit, and Banking recommended broad structural changes in Bangladesh2s system of financial intermediation early in ;BEC, many of which were built into a three%year compensatory financing facility signed by Bangladesh with the '.+ in +ebruary ;BEC. 5ne major e$ception to the management problems of Bangladeshi banks was the !rameen Bank, begun as a government project in ;BC@ and established in ;BE8 as an independent bank. 'n the late ;BEDs, the bank continued to provide financial resources to the poor on reasonable terms and to generate productive self%employment without e$ternal assistance. 'ts customers were landless persons who took small loans for all types of economic activities, including housing. (bout CD percent of the borrowers were women, who were otherwise not much represented in institutional finance. /ollective rural enterprises also could borrow from the !rameen Bank for investments in tube wells, rice and oil mills, and power looms and for leasing land for joint cultivation. The average loan by the !rameen Bank in the mid%;BEDs was around Tk.=,DDD H)SI@?<, and the ma$imum was just Tk;E,DDD Hfor construction of a tin%roof house<. *epayment terms were > percent for rural housing and E.? percent for normal lending operations. The !rameen Bank e$tended collateral%free loans to =DD,DDD landless people in its first ;D years. .ost of its customers had never dealt with formal lending institutions before. The most remarkable accomplishment was the phenomenal recovery rate: amid the prevailing pattern of bad debts throughout the Bangladeshi banking system, only > percent of !rameen Bank loans were overdue. The bank had from the outset applied a speciali&ed system of intensive credit supervision that set it apart from others. 'ts success, though still on a rather small scale, provided hope that it could continue to grow and that it could be replicated or adapted to other development%related priorities. The !rameen Bank was e$panding rapidly, planning to have ?DD branches throughout the country by the late ;BEDs. Beginning in late ;BE?, the government pursued a tight monetary policy aimed at limiting the growth of domestic private credit and government borrowing from the banking system. The policy was largely successful in reducing the growth of the money supply and total domestic credit. Net credit to the government actually declined in +G ;BE@. The problem of credit recovery remained a threat to monetary stability, responsible for serious resource misallocation and harsh ine uities. (lthough the government had begun effective measures to improve financial discipline, the draconian contraction of credit availability contained the risk of inadvertently discouraging new economic activity. +oreign e$change reserves at the end of +G ;BE@ were )SI>C@ million, e uivalent to slightly more than = months worth of imports. This represented a =D%percent increase of reserves over the previous year, largely the result of higher remittances by Bangladeshi workers abroad. The country also reduced imports by about ;D percent to )SI=.> billion. Because of Bangladesh2s status as a least developed country receiving concessional loans, private creditors accounted for only about @ percent of outstanding public debt. The e$ternal public debt was )SI@.> billion, and annual debt service payments were )SI>@C million at the end of +G ;BE@.

2.5 3urrent Structure of 'an(in! Industry 'an(s in 'an! adesh can be c assified into the fo o*in! cate!ories7

2." 3entra 'an( and Its 8o icy Bangladesh Bank is the central bank in Bangladesh. 't was established on ;@ th "ecember ;BC; under the Bangladesh Bank HTemporary< 5rder ;BC;. Bangladesh Bank HBB<, as the central bank, has legal authority to supervise and regulate all the banks. 't performs the traditional central banking roles of note issuance and being banker to the government and banks. 't formulates and implements monetary policy manages foreign e$change reserves and supervises banks and non%bank financial institutions. 'ts regulations 'nclude1 .inimum capital re uirements. Limits on loan concentration and insider borrowing. !uidelines for asset classification.

'ncome recognition. Bangladesh Bank has the power to impose penalties for non%compliance and also to intervene in the management of a bank if serious problems arise. 't also has the delegated authority of issuing policy directives regarding the foreign e$change regime. The powers and functions of Bangladesh Bank are governed by Bangladesh Bank 5rder ;BC= and Banking /ompanies (ct ;BB; to make provisions for streamlining the affair of banking companies to suite the present day2s socio%economic needs of the country. The function of Bangladesh Bank may be classified into following1 3o##ercia 'an(7 The commercial banking system dominates Bangladesh2s financial sector with limited role of Non%Bank +inancial 'nstitutions and the capital market. The Banking sector alone accounts for a substantial share of assets of the financial system. The banking system is dominated by the > Nationali&ed /ommercial Banks, which together controlled more than ?CJ of deposits and operated 88BD branches H??J of the total< as of "ecember 8;, =DDC. Specia i6ed 'an(s7 5ut of the ? speciali&ed banks, two HBangladesh Frishi Bank and *ajshahi Frishi )nnayan Bank< were created to meet the credit needs of the agriculture sector while the other two HBangladesh Shilpa Bank and Bangladesh Shilpa *in Sangstha< are for e$tending term loans to the industrial sector. B(S'/ Bank Limited was established as the policy makers of the country felt the urgency for a bank in the private sector for financing small scale industries HSSS's<. %ist of schedu ed ban(s in 'an! adesh7 )ationa i6ed 'an(s7 +ational Commercial Bank Sonali Bank Limited 9anata Bank Limited (grani Bank Limited *upali Bank Limited 4e" link

Specia i6ed 3o##ercia 'an(s7 +ational Commercial Bank Bangladesh Frishi Bank Bangladesh Shilpa Bank *ajshahi Frishi )nnayan Bank Bangladesh Shilpa *in Shangstha B(S'/ Bank Limited 4e" link

8rivate 3o##ercia 'an(s7 +ational Commercial Bank #ubali Bank Limited )ttara Bank Limited (B Bank Limited '+'/ Bank Limited 'slami Bank Bangladesh Limited National Bank Limited The /ity Bank Limited )nited /ommercial Bank Limited '/B 'slamic Bank Limited 6astern Bank Limited National /redit 7 /ommerce Bank Limited #rime Bank Limited Southeast Bank Limited "haka Bank Limited (l%(rafa 'slami Bank Limited Social 'nvestment Bank Limited "utch%Bangla Bank Limited .ercantile Bank Limited 5ne Bank Limited 6K'. Bank Limited #remier Bank Limited +irst Security Bank Limited Standard Bank Limited The Trust Bank Limited .utual Trust Bank Limited Bank (sia Limited Bangladesh /ommerce Bank Limited 9amuna Bank Limited Shahjalal Bank Limited B*(/ Bank Limited 4e" link http100www.icbislamic%bd.com0 http100www.e$

1orei!n 'an(s7 +ational Commercial Bank /ommercial Bank of /eylon Limited 4e" link

Standard /hartered Bank Limited 3abib Bank Limited State Bank of 'ndia National Bank of #akistan /iti Bank N.(. 4oori Bank Bank (l%+alah Limited The 3ong Fong and Shanghai Banking /orporation Limited 3.1 . 'rief Overvie* of Sona i ban( %i#ited


Sonali Bank is a state%owned commercial bank in Bangladesh. 't is the largest bank of the country.L( fully state%owned enterprise, the bank has been discharging its nation%building responsibilities by undertaking government entrusted different socio%economic schemes as well as money market activities of its own volition, covering all spheres of the economy. Sonali Bank Limited singularly enjoys the prestige of being the agent of the /entral Bank of Bangladesh in such places where the guardian of the money market has chosen not to act by itself. Sonali Bank was established in ;BC= under the Bangladesh Banks HNationali&ation< 5rder, through the amalgamation and nationali&ation of the branches of National Bank of #akistan, Bank of Bhowalpur and #remier Bank branches located in 6ast #akistan until the ;BC; Bangladesh Liberation 4ar. 4hen it was established, Sonali Bank had a paid up capital of 8D million taka. 'n =DD;, it2s authori&ed and paid up capital were Tk. ;D billion and Tk. 8.=C= billion respectively. The bank2s reserve funds were Tk. @D million in ;BCB and Tk. =.D?D billion on 8D 9une =DDD. The management of Sonali Bank is vested in a C%member board of directors appointed by the government. The managing director is the chief e$ecutive. 3e is assisted by a deputy managing director, si$ general managers, and other senior e$ecutives. The general managers are in charge of the bank2s branches in the head uarters of the si$ administrative divisions of the country namely, "haka, /hittagong, *ajshahi, Fhulna, Sylhet and Barisal. The bank has 8= departments at its head office including a training institute in "haka. 5n 8D 9une =DDD, the total number of employees of the bank was =@,DE?.

3.2 Ro e of Sona i ban( %i#ited in the )ationa +cono#y 6conomy and Banking industry go together and are inseparable. Sonali Bank Limited has been playing an important role in the economic development of the country. (s many as =@,DE? people are in the employment of the Bank as on "ecember 8;, =DDE. 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 ;BBC. 4e have handled a volume of countries e$ports and imports. The deposits our Bank mobili&ed through the outlets of branches helped in the formation of capital in the country. 5ur lending to borrower reached Tk. =8;@8.;E

million as on 9une 8D, =DDB. 't has contributed to the industriali&ation and improvement of trade and commerce of the country which ultimately accelerated economic growth and national welfare through multiplying effect. 4e have collected A(T and ta$ on interest0 profit earning of customers of the Bank. +or relief and rehabilitation of natural calamity%hit people of the country in =DDC the bank has donated a denoted amount of money. 1orei!n Re#ittance To develop national infrastructure and economy of Bangladesh Sonali Bank Limited has been playing dominant role to bring hard earning of Bangladesh e$patriates working0 living abroad through banking channels. +or this purpose, Sonali Bank Limited has established a bank named Sonali Bank H).F< and an e$change house named Sonali 6$change /ompany 'nc. HS6/'<, )S(. 5ur Bank has also established drawing arrangement with various e$change house 0 banks in .iddle 6ast, /anada and .alaysia. )nder this arrangement, remitters can easily send their hard earning to the beneficiaries in Bangladesh through ;;E> Sonali Bank Limited Branches across the country. They can remit their money through "emand "rafts H""<, Telegraphic Transfers HTTs<, S4'+T and 0 or /omputeri&ed #ayment 'nstructions H#/ to #/ via dial up modem< on Sonali Bank Limited selective branches. 0rade Financin : Sonali Bank Limited e$tends multiple credit facilities to boost up trade, commerce and industry. The credit packages and interest rates are as under1 3redit 8ac(a!es ;. /redit to Trade and /ommerce =. /redit for #ower "riven Aehicle0 4ater Transport 8. 5verdraft (gainst1 +i$ed "eposits S"#S (ccounts +ive years period Ten years period 'nsurance #olicy0 Shares and "ebenture of #ublic Ltd. /o. 4ork order of !ovt.0 Semi !ovt. /orp 4age 6arners "ev. Bond >. 3ousing Loan *esidential /ommercial ?. Small Loan @. /onsumers credit C. Loans To #ublic Sector 6nterprise E. /ash /redit +acilities for Small Business enterprises B. /ash /redit +acilities against Bricks .anufacturing Interest Rate 91 oatin!4 ;>J ;>J ;8J ;=J ;>J ;>J ;>J ;8J ;8.?J ;>J ;>J ;>J ;>J ;>J ;>J

In!estment Bankin : /entral (ccounts 7 +und .anagement "ivision at 3ead 5ffice maintains 'nvestment #ortfolio of the Bank. 4ith a view to implementing !overnment policies 7 decisions and accelerating the growth of the capital market of the country, surplus funds of Sonali Bank are utili&ed in the following areas1 A) Short 0erm: ;. 3a oans7 (n overnight investment to other Banks 7 +inancial 'nstitutions. =. ,reasury 'i s7 'nvestment made to the !overnment through Treasury bills. B) Lon 0erm: ;. :overn#ent; 8ub ic 'onds7 Sonali Bank Limited purchases bonds issued by the !ovt. of Bangladesh and other #ublic Bodies. =. Shares; +5uity 8articipation7 Sonali Bank Limited participate in the '#5 and e$tend bridge finance to the e uity of public limited companies, institutions and public bodies. 8. &ebentures7 Sonali Bank Limited purchases debentures issued by the public bodies and financial institutions under !overnment.

I0 Financin : Loan /e"t$ Period Security Interes Limit e5uit t Rate y ratio #roject +or 6ntrepreneurs, of them .a$imu .a$imum @ 'n case of +inancin growing at least two with m Tk. years project with g internation recogni&ed degree ;.?D including ; own land 7 al markets diploma in computer million. year grace building no for science or electrical 'n period. collateral ;;J software engineering0 deserving security and data telecommunication0app cases, up other than processing lied physics 7 to Tk. the personal this electronics, forming a ;D.DD guarantee of ED1=D scheme private limited million the loaners provides company may apply. may be is re uired. long term 6$perience in related considere 6ntrepreneu and short field will be preferred. d rs offering term credit collateral facilities security will on easier be preferred terms to or loan may set up and be consider run 'T with +ame A"out #li i"ility

based projects.

6$port +or e$port +easibly implemented Tk. ;.DD BD1;DL0/ or +inancin of softwareand properly staffed 'T million. contract g and projects with e$port +or larger period plus processed L0/ or firm contract in contract =; days but data short hand may apply. 6$port higher not term through satellite, BTTB amount e$ceeding finance is confirmation re uired. may be ;ED days e$tended considere from the to e$isting d. date of 'T disburseme projects. nt.

personal guaranty of worthy personHs< Hthird party<. No ;;J collateral security other than the personal guarantee of the loaners is re uired. But for loan amount e$ceeding Tk.;.DD million, collateral will be re uired.

3.3 3orporate 8rofi e of Sona i 'an( %i#ited +ame of the Company Chairman C#& and .ana in /irector Company Secretary Le al Status *enesis : Sonali Bank Limited 1 Mua&i Baharul 'slam 1 .d. 3umayun Fabir 1 Naheed 3ossain 1 #ublic Limited /ompany 1 6merged as Nationali&ed /ommercial Bank in ;BC=, following the Bangladesh Bank HNationali&ation< 5rder No. ;BC=H#5 No.=@ of ;BC=< /ate of Incorporation 1 D8 9une, =DDC /ate of 6endor(s A reement 1 ;? November, =DDC Re istered &ffice 1 8?%>=, >> .otijheel /ommercial (rea, "haka, Bangladesh Authori-ed Capital 1 Taka ;D.DD billion Paid$up Capital 1 Taka DB.DD billion +um"er of #mployee 1 =;,E8B +um"er of Branches 1 ;;E> Phone$PAB7 1 B??D>=@%8;, 88, 8>, B??=B=> FA7 1 EE%D=%B?@;>;D, B??=DDC S4IF0 1 BS5NB""3 4e"site 1

3." )ature of 'usiness The #rinciple activities of the bank include providing of all kinds of commercial banking services to its customers. The activities can be classified in the following ways1 /orporate Banking. #roject +inancing. S.6 +inance. /onsumer /redit. 'nternational Trade. Trade +inance. Loan Syndication. +oreign 6$change "ealing. *ural and .icro /redit. N!5% Linkage Loan. 'nvestment. !overnment Treasury +unction. .oney .arket 5peration. /apital .arket 5peration. *emittance.



3.0 'oard of &irectors Sl8 +o8 18 98 :8 ;8 <8 =8 >8 ?8 98 1@8 118 198 1:8 +ame .r. Mua&i Baharul 'slam .r. .d. Shahid )lla .ia "r. Nasreen Fhundker .r. (.S... Nayem, +/(, +//( .r. .. Lutfur *ahman Fhan .r. F... Naman *omel .r. Fashem 3umayun .r. Shaimum Sarwar Famal (dvocate Sattayendra /handra Bhakta .rs. 9annat (ra 3enry .r. Suvas Singho *oy .r. .d. (nwar Shahid .r. .d. 3umayun Fabir /esi nation /hairman "irector "irector "irector "irector "irector "irector "irector "irector "irector "irector "irector /65 7 ."

3.< Sources and =ses of 1unds Sources of Funds (uthori&ed /apital. 'ssued /apital. Subscribed /apital. Ases of Funds /ash in 3and. Balances in /urrent (ccount with other banks. /all Loan.

/alled up /apital #aid up /apital. *eserve fund and other reserves. "eposits and other accounts. Borrowing from Banking companies, (gency. Loan from /entral Bank. 3.1> 3ore ?a ues

Short Loan. #urchase of !ovt. /redit 'nstrument, Share, Security. Bills "iscounting and Treasury Bill. Loans and (dvances.

Sonali Bank Limited HSBL<2s /ore Aalue proposition consists of ten key elements. The values would assist the bank in perceiving its employees to work as a team towards accomplishment of assigned duties and responsibility for achievement of desired objectives. Team work1 5pen communication, discussion and interaction amongst the employees would ensure unification of actions and efforts towards achieving the common goal.

+thics7 6very one must ensure adherence to ethical practices of banking. Objectivity7 (ll persons will have definite objective in carrying out their tasks. Inte!rity7 #rotection and safeguard of customers2 interest is a vital element for societal trust. +-ce ence7 6$cellent performance and effectiveness are preconditions to ensure uality service to the large customer base of the bank. Innovation7 New and innovative products are the needs of the time for which continuous action oriented researches are carried out. 3o##it#ent7 6very employee is committed to work up to the e$pected level to ensure satisfaction of valued customers. Se f Re iance7 6ach employee will have ownership attitude towards the bank and self confidence in his work for betterment of the bank.

,ransparency7 'nformation is to be kept open for all so that stakeholders can have proper ideas about the bank2s activities. .ccountabi ity7 (ll employees are responsible for their activities and will remain accountable to their respective superior for accomplishment of tasks. 3.11 3ore Stren!ths Transparent and Muick "ecision .aking. 6fficient Team of #erformer. Satisfied /ustomers. 'nternal /ontrol. Skilled *isk .anagement. "iversification. 3.12 3ore 3o#petencies Fnowledge 6$perience 7 6$pertise. /ustomer 5rientation0 +ocus. Transparency. "etermination. Neal for 'mprovement. *eliability. 3.13 +thica 8rincip es 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 reali&ed fully and sustained overtime by faithfulness to ethics that cannot always be built into sets of rules and regulations. 'n this belief in ethics that motivates the bank in its dealings with customer, regulators and employees. 3.14 3o##it#ent to 3 ients Sonali Bank Limited has trying to concentrate on modern banking through continuous using modern technology. 4e also trying to help more to customer by providing various savings schemes like as 6"S, .6S and "BS etc. 5ur commitments to the clients are the following1

#rovide service with high degree of professionalism 7 continuous use of modern technology through proper use of young generation officers. /reate long%term relationship based on mutual trust with customers. Share customer2s values 7 beliefs. #rovide product and service at competitive pricing. 6nsure safety and security of customer2s valuables in trust with us. 3.15 3orporate Socia Responsibi ity93SR4 Sonali Bank Limited HSBL< has been rendering various services for attaining greater social goals and objectives. +or this process, we aim to contribute towords sustainable development of the society as a whole and fulfillment of corporate social obligation in particular. To reinforce /S* 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 7 culture, banking for the disadvantaged groups, disaster 7 relief activities. Socia Services7 SBL has been rendering social services through distribution of various allowances to the +reedom +ighters, 4idows, 5ldOage citi&ens, vulnerable groups, "isabled 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. +#po*er#ent of *o#en and poor7 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 'ncome !enerating (ctivities H'!(<. Sports and 3u tura .ctivities7 Sonali Bank Limited has a tradition of patroni&ing and sponsoring sports and cultural activities at home and abroad. 'n =DDC, Sonali Bank Limited became /hampion in the Aictory "ay 3ockey Tournament and *unners2 up in the 5ffice 3ockey League, "haka. 'an(in! service for the &isadvanta!ed :roups7 4ith ;;E= branches all over Bangladesh, SBL could reach the banking services to the disadvantaged groups with the aim to encourage them in mobili&ation of their hard earned savings and creation for them investment opportunities. +#p oyee *e fare7 SBL offers annual stipends and scholarships to the brilliant children of the employees of the bank.

&isaster Re ief7 SBL always stands beside the helpless people at the times of natural calamities and e$tends helping hands to the sufferers. SBL donated Tk. ;D.? million to help the victims of cyclone PSidor2 to the relief fund of the /hief (dvisor. Sonali Bank Limited has collected funds from Bangladeshis residing abroad and remitted over Tk. ;?D million at free of charge through Sonali 6$change /ompany HS6/'<, )S( and Sonali Bank H)F< Limited. SBL has also donated to establish a /ancer 3ospital in "haka. 't has helped a number of +oundations and 5rganisations for raising funds through lottery and other means. 1uture 8 an7 SBL will continue to patroni&e sports and culture at home and abroad. (rrangements will be made for rendering better social services to the community apart from core banking activities. Specific action plans will be initiated to e$pand /S* programs in line with the guidelines of Bangladesh Bank and Securities 7 6$change /ommission HS6/<. 4.1 8ersona 'an(in! Sonali Bank Limited e$tends all the major personal banking facilities and services to its customers with its skilled manpower and largest network of around ;;EC branches covering all the urban and remote rural areas of Bangladesh. Sonali Bank Limited provides Local 7 +oreign *emittance in uickest possible time. +oreign remittance is available in both Taka cash. 7 Taka draft. ;. Transfer of fund from one branch to another by O "emand "raft Savings (0/ O .ail Transfer "aily #rofit (0/ O Telegraphic Transfer +"* (0/. =. Transfer of fund on Standing 'nstruction (rrangement HTrade +inance<. 8. /ollection of che ues through clearing house0beyond /learing 3ouse. >. 'ssuance of payment 5rder0/all "eposit. ?. Locker facilities for safe keeping of valuables. @. /orporate /lient Services with computeri&ed system at selective branches. 4.2 Rura 3redit Bangladesh is primarily an agricultural country. ( major portion of her population H about E?J< live in the rural areas. (bout C?J of the active rural population depend on agriculture as the main source of their livelihood. (griculture contribute about ==J to the !"#. .ajority of the farmers are either small or marginal. So /redit plays a paramount role to augment the capital base to support agriculture production. 4ith this end in view. Sonali Bank Limited the largest state owned commercial bank has been playing a vital role in the socio%economic development 7 poverty alleviation since ;BC8. Feeping in view that /redit is one of the many inputs that complete the cycle of agricultural production Sonali Bank e$tending rural credit through ;;E= branches over the country. Sonali Bank Limited introduced indirect rural credit in ;BC8 through the then '*"# HNow B*"B< there after continuing lending in the following programs1

8ro!ra#s >143rop %oan 9Specia .!ricu tura 3redit 8ro!ra#47 (s per !overnment decision this program was introduced in ;BCC to increase crop production Hcredit to subsistance and marginal farmers as well as share%cropers for raising seasonal crops<. Now this program is continuing through CDC branches among the farmers of ;@8B unions. *ecently Sonali Bank Limited introduced *evolving /rop /redit Limit System from one branch of each district. >24 Specia Invest#ent 8ro!ra#7 This program was introduced in ;BB8 for creating self employment by establishing small 7 medium farms H#oultry, "airy 7 +ishery< through bank finance. )nder this program credit is e$tended through =8@ selected branches over the country. .a$imum ceiling of loan is Tk. ?.DD Lac. >341ar#in! @ off far#in! pro!ra#7 This program was introduced in ;BB> to involve unemployed rural people in income generating activities H#oultry, "airy, +ishery, 3orticulture, Nursery, Beef fattening< by establishing small 7 medium farms through bank finance. /redit is e$tended through all branches over the country. .a$imum ceiling of loan is Tk.;?.DD Lac. >44 Arishi Aha#ar Rin Aar#asuchi 98roject47 This program was introduced is ;BB8 for creating new employment, increase national income 7 Socio economic development by establishing medium 7 big project H#oultry, "airy 7 +ishery< through bank finance. >548ond 1isheries 3redit 8ro!ra#7 This program was designed to e$tend bank credit for pisciculture in derelict ponds0Tanks0water bodies in ;BCC /redit is e$tended through =DD branches over the country. .a$imum ceiling of loan is Tk.?.DD Lac. >"41erti i6er &ea ers 3redit 8ro!ra#7 This program was introduced to e$tend bank credit among the approved fertili&er dealers operating at primary distribution point of B("/ for lifting their uota of +ertili&er from B("/ for ultimate distribution among the farmers in ;BE;. >$4Su!arcane 8roduction oan 8ro!ra# in Mi Bone .rea7 This program was introduced in ;BC? to increase sugar production. )nder this program credit is e$tended to ;; Heleven< sugar mills for ultimate disbursement among their affiliated farmers. >04Socia .fforestation 8ro!ra#7 This program was introduced in =DD> to increase forestation and to reduce greenhouse effect. /redit is e$tended through all branches over the country. .a$imum ceiling of this program is Taka ?.DD lac. 4.3 Micro 3redit

#overty alleviation has appeared to be the focal point of all policy formulation and development issues of the nation. (s such, it has been globally accepted as an effective strategy for poverty alleviation in one hand and generating employment opportunities on the other. 'n commitment to reduce poverty in urban, semi%urban and rural areas, Sonali Bank Limited has started functioning in .icro /redit through a full pledged micro credit division in its 3ead 5ffice in the year =DD8. #resently, 8= projects0programmes are being run under the control and supervision of this "ivision. (mong all others programmes, Bank%N!5 Linkage program and /redit for )rban 4omen .icro 6nterprise "evelopment H/).6"< in "haka /ity, !oat rearing, Lamb rearing, +ruit, 3erbal, .edicinal and Nursery #roject, .icro% enterprise program% P)nmesh2 in .oulaviba&ar district, .S+S/'# in Furigram district, Loan for "isable #ersons etc. deserve special mention for channelising the financial resources into the various potential avenues of microfinance. Sonali Bank Limited jointly with Swanirvar Bangladesh, B*"B and ("B has been providing huge investible funds into the different )pa&illas within the country. ;?= )pa&illas have been covered by the *ural Livelihood #rogramme H*L#<. +urther, this "ivision has provided taka ;CB.DB crore to @E N!52s under its widely accepted Bank%N!5 Linkage #rogramme on whole sale basis and whose recovery rate is ;DDJ. Specially, for the disable people "isable Loan #rogramme has been undertaken to bring the disable section of the people under the micro credit facilities. The !oat *earing #rogramme undertaken by this "ivision has been running with a remarkable impact in reducing the rate of massive% scale rural poverty. Sonali Bank has already disbursed >@.>C crore upto 8; "ecember, =DDC. +urther, in order to create employment opportunities and to generate income of the rural people two loan schemes under the name and style ,*ural Small +arming Loans scheme and ,*ural Small business loan- scheme have been introduced in%=DD> . 'n both the programs there is a provision of collateral free loan up to Tk. ?D,DDD0% . 'n =DD@ a new program has been introduced named PP "aridra Bimochane Sahayta Farmasuchi22for the e$tremely P.onga2 affected rural people. .oreover, in =DDC a special program has been introduced for S'"* affected ;= areas in which there is a provision of collateral free loan up to TF.=D,DDD0%. )p to "ecember =DDC, Tk. 8=BB.>C crore has been disbursed under various project0 programs of this "ivision where as this disbursement figure was Tk. 8D?@.@8 crore up to "ecember =DD@. The key features of some running projects0#rograms of .icro /redits given as follows1% Sl8 +o8 ProBectC Pro rams 1 Swanirvar /redit #rogram 9 /rop !odown /redit #roject : ; < Sonai Bank %B(*", /omilla #riogik !abesana *in #rokalpa Sonai Bank% *"(, Bogra #riogik !abesana *in #rokalpa .arginal and Small +arms System /rop 'ntensification 0ar et *roup #oor Landless people Small 7 .edium +armers Bittahin rural male 7 female Bittahin rural male 7 female .arginal, #oor 7 Small +armers Loan Si-e in 0k8 ;,DDD%;?,DDD 3ighest ;D,DDD 3ighest ;D,DDD 3ighest ;D,DDD 3ighest ;D,DDD

= > ? 9 1@ 11 19 1:

programH.S+S/'#< 3erbal 7 +orestry, .edicinal #lant 7 Nursery "evelopment /redit program !rameen Fhudra Babsa *in Farmasuchi "aridra Bimochane Sahayta *in Farmasuchi Loans to "isable #eople )nmesh /redit #rogram !oat *earing /redit #rogram /redit for )rban 4omen .icro 6nterprise "evelopment H/).6"< Bank%N!5 linkage /redit #rogram

Bittahin, #oor 6nergetic ?,DDD%=?,DDD Gouth #oor #eople 3ighest ?D,DDD 3ard /ore #oor #eople ?,DDD%;D,DDD "isabled #eople .icro 6ntrepreneurs Small 7.edium 6ntrepreneurs )rban 4omen 6ntrepreneurs #oor #eople =?,DDD%?D,DDD ?D,DDD%=,DD,DDD 3ighest ?D,DDD 3ighest ?,DD,DDD 3ighest ?DDD% ?D,DDDHLoan 4holesaling to N!5s< 3ighest ?D,DDD ?,DDD%;=,?DD ;D,DDD%;@,?DD E,DDD%;?,DDD ;,?DD%=D,DDD ?,DDD%=D,DDD =,888%=E,DDD 3ighest =D,DD

1; 1< 1= 1> 1? 19 9@ 91

Fhudra Fhamar *in Farmasuchi Salt #roduction /redit #rogram 'ndividual 'rrigation 0 (griculcural 6 uipment /redit #rogram B*"B /rop /redit #rogram

Small 6ntrepreneurs (ctual Salt #roducer Small, .arginal 7 .edium +armers Small, .arginal 7 .edium +armers B*"B 'ntegrated *ural "evelopment /o operative #oor .ale #rogram 7 +emale .ember B*"B *ural Livelihood #rogram Small, .arginal 7 .edium +armers B*"B %Shrimp /ulture /redit Small, .arginal 7 #rogram .edium +armers Special Loan for S'"* affected (rea S'"* affected #eople

4.4 Internationa 'an(in! Sonali Bank Limited e$pertise in 'nternational Banking has a record of in%house growth over more than half a century. 'ts pioneer role in handling foreign trade and foreign e$change transactions ever before independence of the country still remains unchallenged. 4ith wide network of branches at home and also a large number of correspondent banks world%wide it is singularly handling the largest volume of e$port%import business including home%bound remittances. 8roducts @ Services7 6$port /redit H#re%shipment 7 #ost shipment< +acilitating Supplier2s /redit

L/s HLetters of /redit< !uarantees % % % (dvance #ayment !uarantee. Bill #urchasing0"iscounting *emittance, collection, purchases 7 sales of +oreign /urrency 7 Traveller2s /he ues. N*(T HNon%*esident (ccount in Taka< N+/" (0c HNon%*esident +oreign /urrency "eposit< *+/" (0c H*esident +oreign /urrency "eposit< /onvertible and Non%convertible Taka (ccount +orward contracts /orrespondent Banking *elations I#port 1inance7 Sonali Bank Limited supports its customers by providing facilities throughout the import process to ensure smooth running of their business. The facilities are1 a. 'mport Letter b. #ost 'mport +inancing c. 'mport collection services 7 Shipping !uarantees. Interest Rate: 19D to 1;D +-port 1inance7 Sonali Bank Limited offers e$tra cover to its customers for whole e$port process to speed up receipt of proceeds. The facilities are1 a. 6$port Letters b. #re%shipment c. 6$port d. Letter of /redit confirmation. Interest Rate: >D E 1D ser!ice char e 0he comparati!e position of forei n eFchan e "usiness for the year 9@@> and 9@@?8 HTk. in /rore< of 6$port documents /redit advising. +inancing. negotiation. of HL'.,LT* /redit. etc<. in Bid #erformance +oreign /urrency Bond !uarantee

Sl8 +o8 18 98 :8 ;8

Particulars Total 'mport Total 6$port 'nward *emittance H'ncluding 46S< 5utward *emittance H'ncluding 46S< 0otal

9@@? ;?;>@.?; CB8E.BE ;D8>>.>E ;=C>.=B :;>@;89=

9@@> >=;98=? >?@;8<9 991>8?: 19:989? 9<9@;8:?

4.5 Industria 1inancin! 3redit Sche#es7 Long term loan for setting up new industrial units and B.*6 of e$isting units including working capital finance are e$tended by Sonali Bank Limited to cottage industries, small% medium%large scale industries and also to self%employed persons with a view to creating employment opportunities, deployment of resources, increasing !"# and over%all industrial development of the country. /urrently the following credit schemes are on offer by the bank1 So#e of the #ain 3redit Sche#es7 'ndustrial +inancing for Thrust Sectors. Sonali Bank 'ndustrial /redit Scheme. Special 'nvestment Scheme for /ottage and Small 'ndustries. +inancing Large Scale 'ndustries through Banks2 /onsortium. +inancing Software "evelopment and "ata #rocessing. &esi!nated 'ranches7 (bout ;DD branches including all the corporate and district head uarters branches are designated to handle industrial credit. ,hrust Sectors7 Besides the traditional and oft%trodden sectors, Sonali Bank Limited has also come up with very low rate of interest to finance the following thrust sectors of the economy as identified by the !overnment1 Software development and data processing. (gro%based industries He$cepting cold storage for preservation of potatoes<. .anufacture of artificial flowers. +ro&en foods.

!ift items Hpreferably e$port oriented<. ;DDJ e$port oriented finished leather goods. ;DDJ e$port oriented jute goods. 9ewelry and "iamond cutting and polishing. 5il and !as. Sericulture and silk industries. Stuffed Toys Hpreferably e$port oriented<. ;DDJ e$port oriented te$tile industry He$cepting garments manufacturing industries<. Other ?iab e Industria Sectors7 /omposite te$tile Hwoven 7 knit fabrics<. Te$tile 0 (crylic Spinning. Sweater 'ndustry. !arments (ccessories 7 4ashing #lant. "enim +abrics He$port oriented<. Tourism 0 3otel and *esort facilities. 3ospital 7 /linics. 5ther 6$port linkage industries. #ower !enerating #lant. L#!, /N! +illing 7 /onversion plant. #harmaceutical 'nd. #lastic 'nd. Tannery0*ubber +oot wear. 5ther highly rewarding appropriate technology based projects. Interest Rates7 #roject0Term Loan 1 ;=.DDJ to ;8.DDJ

4orking /apital 1 ;8.DDJ Overa Industria 3redit 8osition of the 'an( as on 31 &ece#berC 2>>07 HTk. in /rore< Sl8 +o +ature of Loan +o8 of Anits @BE =;;?= ;=BE 9:1;? Amount sanctioned 8E;;.8; @C?.D= ;>=;.8= <9@>8=< Amount reco!ered ;D?D.?? @>E.@= E?;.>B 9<<@8== &utstandin =@>@.@@ ;?E.CD =>C>.B= <9?@89?

18 Large 7 .edium 98 Small 7 /ottage :8 4./ to industries 0otal: 4." Merchant 'an(in!

Sonali Bank Limited, the largest State owned commercial bank in Bangladesh. Be an to in!est in the secondary market from the month of Fe"ruary 9@@98 The growth of institutional investments in capital market of Bangladesh has been far below the e$pectation. (s we know .erchant Bankers can play a vital role in helping to make the stock market transparent and vibrant. Sonali Bank Limited o"tained License from the Securities and #Fchan e Commission in 9: .arch 9@@9G to operate in the Capital market as a full$fled ed .erchant "ank8 0he terms , conditions imposed "y the S#C in operatin the .erchant Bankin acti!ities are: ;. 18 There shall be separate unit with separate personnel and designed area for the purpose of .erchant Banking 5peration. =. 98 The .erchant Banking )nit shall maintain separate books of accounts and financial statements to show clearly the financial position in respect of its .erchant Banking 5peration. +inancial statements shall be audited by a chartered accountant firm certifying that the relevant rules and guidelines by S6/ and other relevant authorities have been strictly adhered to: 8. :8 The .erchant Banking )nit shall be e uipped with necessary modern office e uipment for smooth functioning 7 efficient services to the clients: >. ;8 (ll other terms 7 conditions as laid down in the S6/ H.erchant Banker 7 #ortfolio .anager< *egulations ;BB@, S65 ;B@B, S6/ *ules ;BB8 and any amendment thereof from time to time shall be adhered to at all times. (s stipulated in the Securities and 6$change /ommission H.erchant Banker and #ortfolio .anager< regulations ;BB@, the services of issue management, portfolio management, underwriting of shares and securities and advisory services fall under the purview of .erchant Banking 5peration. Sonali Bank Limited has "een oin 'ith .erchant Bankin &peration since 1; Septem"er 9@@9 at 11CAG Sara 0o'er 111 th Floor)G 0oyeen"ee Circular RoadG .otiBheelG /haka8 't has a .erchant Banking .anagement /ommittee to manage 7 take uick decision of merchant banking activities.

SBL provides margin loan to the investors at the ratio% ;1=? Hpreviously ;1;.?< and we always abide by the restrictions, rules 7 regulations of Securities and 6$change /ommission. +or e$ample, the recent S6/ restriction to provide margin loan to the company, which have more than ?DJ of #06 ratio. SBL doesn2t provide margin loan for PN2 category shares, .utual funds 7 some risky shares. SBL always counsel the clients to follow the fundamental factors of investment. +irstly, SBL suggest taking an overview of the desired company in which the investors want to invest, such as company2s background, authori&ed capital, #aid up /apital, (ssets 7 Liabilities, last five years Net #rofit, "ividends, 6arning per Share, Net (sset Aalue, #06 ratio, highest 7 the lowest price of the share etc. Thus an investor can know the /ompany2s #erformance 7 .anagement 6fficiency to take an investment decision. (fter all these, investors can take his0her decision at his0her risk to invest in any company2s share. Now SBL has a workstation of '/B named 'ST/L for the trading purpose. So far SBL is going to underwrite the Tk.;DD crore '#5 of 9anata Bank Limited. SBL have been offered to take private placement of Be$imco #harmaceuticals to purchase preference shares. 4e are participating in the upcoming '#5 of 9BL as Banker2s to the issue. (s per B#*" /ircular no%;= of Bangladesh Bank on ;= th 5ctober =DDB every merchant Banking )nit of /ommercial bank should be converted into a subsidiary company. 4e are already got the permission of Bangladesh Bank. 'n this regard a .emorandum and (rticles of association have been approved by the Board of "irectors of Sonali Bank Limited. Sonali Bank Limited has submitted the name of the subsidiary company as HSonali In!estment LimitedI to the registrar of joint stock companies and also got the Name clearance letter. There will be @Hsi$< "irectors for Sonali 'nvestment Limited including >Hfour< "irectors represented from Sonali Bank Limited 7 = independent "irectors from other than Sonali Bank Limited. 3uman resources will be employed from Sonali Bank Limited on deputation. 4e hope Sonali 'nvestment Limited will also become the Leading .erchant Bank like the Sonali Bank Limited, a Leading /ommercial bank in Bangladesh.

0he data re ardin the .erchant Bankin operations in the .erchant Bankin Anit of Sonali Bank Ltd is i!en "elo': 5btained License from S6/ Started .erchant Banking 5peration Number of (ccounts opened up to date Si&e of the 'nvestors #ortfolio Inco#e of S'% fro# Merchant 'an(in! 9,(. In #i ions4 )a#e of the Inco#e Dead Eear 9Ran!e4 Eear 2>1> up to January 25 1 =8 .arch =DDB 1 ;> September =DDB 1 (bout =DD 1 Tk. ;?D.?D million

2>>< 9Septe#ber/&ece#ber4

'nterest on #ortfolio Loan .anagement +ees "ocumentation /harge Settlement +ees Total

D.=> D.D8? D.D=? D.=? D.??

D.88 D.D@> D.DE8 D.=E D.C?C

Loan Ratio Rate of Interest .ana ement Fee : :

1: 18< 1at present 1:1) 1:D 1D

To operate the .erchant Banking activities Sonali Bank Ltd have purchased the uni ue soft ware namely P2m bank- developed by the renowned software Aendor .0S Leads /orporation. The .erchant Banking )nit will start its operation as a subsidiary company under the name of ,Sonali In!estment Limited- very soon. (nd we believe that it will be able to hold the position of the leading .erchant Bank as it has been doing since it started its journey in the banking arena. 4.$ SM+ 'an(in! To reduce poverty within =D;? Sonali Bank Ltd. 3as start a service which is S.6 loan. By offering this product Sonali Bank Ltd. 3elps government to increase job opportunity as well as increase !"#. &"Becti!es of S.# Loan$ 3elp government to remove poverty. 6arn much currency by 6$port 'mport business to government. 3elps woman entrepreneur to be self%independent by providing loan. 'ndustriali&ation with employment opportunity. Re5uirements for ettin Loan$ .inimum = years business e$perience. 6ntrepreneur must be educated 7 healthy and age must be within ;E%@D.

4omen entrepreneur will get first preference. 6ntrepreneur must be Bangladeshi citi&en.

0ypes of product for ettin S.# loan$ #Fport products$ ;. +ringing #lant for fish. =. Tanaree business. 8. 6$port furniture. Import products$ ;. Kining .ill. =. !arments accessories. 8. 4ashing plant, #ackaging. Loan Limit$ "epends on business type loan can be ?DDDD%;DDDDDDDD /uration and Interest rate$ "uration depends on business type. But in case of current assets ; year and in case of term loan 8%C years. 'nterest rate is ;8J. 4.0 On ine 'an(in! 18 Branch Computeri-ation: =@C branches are on live operation. 5ut of ;;E= branches at home, ;;@B branches have already been entered in the automation network. 98 Forei n Remittance : Bank2s own in%house software ,*emittance .anagement SystemH*.SQ<, having, among others, the feature of paying foreign remittance instantly over the counter is being implemented at all branches. This web based software provides digital services to the e$patriates through its uni ue advantage of sending confirmation message to the mobile phone of the remitter0beneficiary. :8 A0.: Sonali Bank Limited is a member of M%/ash (T. network. (t present the bank has ;= (T. booths. 6stablishment of >8 more (T. is on. Sonali Bank2s (T. cardholders enjoy the access to the (T.s and #5S of "utch Bangla Bank Ltd. and Brac Bank Ltd. besides those of M%/ash consortium. Sonali Bank recently launched /redit /ard. 1eatures7 Sonali Bank *eady /ash /ard is a "ebit /ard.

/ardholder can easily pay utility bills like O 4ater, Telephone, !as etc. 't is easy to remit funds among the participating branches of the Bank. Transaction beyond working hours. 't is a riskless /ash /arrying facility. /ashless purchase can be made form specific merchandise points. 5nly computeri&ed Branches of "haka /ity will deal *eady /ash /ard. Branches of other /ities and Towns will introduce Sonali Bank *eady /ash /ard in due course. ;8 &nline and S.S Bankin : (t present 8> branches of Sonali Banks are included in the 5nline (ny Branch Banking H(BB< network. The bank is seriously working on connecting all branches in the *eal%time 5nline Banking network gradually. Branches having (BB facility are also rendering S.S banking services. <8 S4IF0: S4'+T facilities are available in Bank2s 3ead 5ffice and in =; designated branches. 4.< .nci ary Services Sonali Bank Limited offers multiple special services with its network of branches throughout the country in addition to its normal banking operations. 3o ection7 !as bills. 6lectricity bills. Telephone bills. 4ater0Sewerage bills. .unicipal holding Ta$. #assport fees, visa fees and Travel ta$. /ustoms 7 6$cise duties. Source ta$ and A(T. 9akat fund. 3ajj deposit.

Land development ta$. 8ay#ent7 #ension of employees of !overnment and other /orporate Bodies. Bangladesh Bank employees2 pension. (rmy pension. British pension. Students2 stipend0scholarship. !ovt. 7 Non%!ovt. Teachers2 salary. +ood procurement bill on behalf of the !ovt. Socia Services7 5ld age allowances. 4idows, divorcees and destitute women allowances. +reedom +ighters2 allowances. *ehabilitation allowances for acid survival women. .aternal allowances for poor women. "isability allowances. Sa e @ +ncash#ent;8urchase7 Savings /ertificates. '/B )nit /ertificates. #ri&e Bonds. 4age 6arner2s "evelopment Bonds. )S "ollar #remium 7 'nvestment Bond. Lottery tickets of different Semi%!ovt. and (utonomous Bodies. Sanchaypatra. #ublic Service /ommission2s application form.

9udicial Service /ommission2s application form. 6$change of soiled 0 torn notes. 4.1> Misce aneous Services Bank (0/ information of ta$ payee client according to demand of NB*. Local !overnance Support #roject. 6nlist of Non !overnment 'nsurance /ompany. Locker Service is provided in some branches of Sonali Bank Limited. /ustomers may avail this service and secure their valuables. Locker Si-e Small .edium Lar e 3early Char e 10k8) ;,=DD.DD ;,?DD.DD =,DDD.DD Security /eposit 10k8) =,DDD.DD H*efundable<

5.1 Rura &eposit Sche#e 9R&S47 ( deposit scheme for the rural or people live under middle%class. .onthly deposits1 ;DD,=DD,8DD,>DD,?DD and ;DDDTk. "uration of the deposit% C years 7 rate of interest% BJ Loan a ainst account: 4hen any particular account duration reaches to ; year and on that account if there are ?DDD Tk. Balance money then the account%holder can get ma$imum EDJ overdraft opportunity. *"S can be opened in those branches of Sonali Bank which are located in the rural. Procedure of Rural /eposit scheme 0otal .oney *i!en Interest Bonus Amount 0otal .oney After > years includin Interest and Bonus E>DD =@CC ;DDD ;=DCC ;@EDD ?8?? ;;DD =8=?? =?=DD ED8= ;=DD 8>>8= 88@DD ;DC;D ;8DD >?@;D >=DDD ;88EC ;>DD ?@CEC E>DDD =@CC? ;BDD ;;=@C?

/eposit amounts types 1@@ 9@@ :@@ ;@@ <@@ 1@@@

5.2 Marria!e Savin!s Sche#e 9MSS47 "uration of the deposit1 ;D years 7 interest% E.?J

Loan opportunity against account1 4hen any particular account duration reaches to ; year and on that account if there are ;DDDDTk. balance money then the account%holder can get ma$imum EDJ overdraft opportunity. .SS can be opened in all branches of Sonali Bank Limited. Bonus only is given after the continuous operation by the account holder. Procedure of .arria e Sa!in s Scheme /eposit amounts 0otal .oney *i!en Interest Bonus Amount 0otal .oney types After 1@ years includin Interest and Bonus 1@@ ;=DD @@== 8DD ;EB== 9@@ =>DD ;8=>> @DD 8CE>> :@@ 8@DD ;BE@@ BDD ?@C@@ ;@@ >EDD =@>EE ;=DD C?@EE <@@ @DDD 88;;D ;?DD B>@;D 1@@@ ;=DDDD @@==D =DDD ;EE==D 9@@@ =>DDDD ;8=>>D 8DDD 8C?>>D :@@@ 8@DDDD ;BE@@D >DDD ?@=@@D ;@@@ >EDDDD =@>EED ?DDD C>BEED <@@@ @DDDDD 88;;DD @DDD B8C;DD =@@@ C=DDDD 8BC8=D CDDD ;;=>8=D >@@@ E>DDDD >@8?>D EDDD ;8;;?>D ?@@@ B@DDDD ?=BC@D BDDD ;>BEC@D 9@@@ ;DEDDDD ?B?BED ;DDDD ;@E?BED 1@@@@ ;=DDDDD @@==DD ;;DDD ;EC8=DD 5.3 Month y +arnin! Sche#e 9M+S47 "uration of the deposit1 8 and ? years. (mount of deposits1 ?DDDD or ;DDDDD. *ate of interest1 +or 8 years BJ and for ? years ;DJ. Loan opportunity against account1 4hen EDJ overdraft opportunity on a particular account. .6S can be opened in all branches of Sonali Bank. Bonus amount can be taken monthly wise. Procedure &f Payment &f .onthly Interest : years 8C? C?D

/eposit <@@@@ 1@@@@@

< years >=D E8?

5.4 &oub e 'enefit Sche#e 9&'S47

"uration of the deposit1 E years. (mount of deposits1 ?DDD minimum. *ate of interest given yearly basis as following1 /uration Ap to = months Ap to 1 year "ut more than = months Ap to 9 year "ut more than 1 year Ap to : year "ut more than 9 year Ap to ; year "ut more than : year Ap to < year "ut more than ; year Ap to = year "ut more than < year Ap to > year "ut more than = year Ap to ?year "ut more than > year Interest rate >J ?J @J CJ EJ E.?J E.?J E.C?J BJ Interest 0otal Amount ;DDD ?;DDD =?DD ?=?DD @DDD ?@DDD ;D?DD @D?DD ;@DDD @@DDD =;=?D C;=?D 8;?8C E;?C8 8BB>? EBB>? >B@=E BB@=E Includin 1@@@@@ Bonus :>9 0k8

(ll types of vat according to government rule will be deducted from the account. Rule for /ou"le Benefit Scheme$ This account can be open in all the branches of Sonali Bank Limited. But account holder must be age of ;E or above. (n account holder can get up to EDJ loan against his deposit in the account. 'n case of closing account customer can any time apply to the .anager H4here account was opened<, but a charge of =?D Tk. will be applicable. 5.5 Medicare &eposit Sche#e 9M&S47 "uration1 ;D years. (mount of monthly saving1 ?DD%;DDDD Tk. 7 rate of interest is yearly EJ. "ate of payment1 ;D %=D of every month. Cumulati!e total after end of duration .onthly Payment amount Bonus Bonus E Interest after end of duration <@@ ;?DD B=;E? 1@@@ =DDD ;E88C; 9@@@ 8DDD 8@?C>8 :@@@ >DDD ?>E;;?

;@@@ <@@@ =@@@ >@@@ ?@@@ 9@@@ 1@@@@ 5." Sona i &eposit Sche#e 9S&S47 "uration1 ? years.


C8D>EC B;=E?E ;DB?=8D ;=CC@D= ;>?BBC> ;@>=8>? ;E=>C;C

(mount of monthly savings%?DD%;DDDD Tk. 7 rate of interest is yearly E.?J. "ate of payment1 ;@%=? of every month. Cumulati!e total after end of duration .onthly Payment amount Bonus Bonus E Interest after end of duration <@@ ;?DD 8E@EB 1@@@ =DDD C@8CE 9@@@ 8DDD ;?;C?@ :@@@ >DDD ==C;8> ;@@@ ?DDD 8D=?;= <@@@ @DDD 8CCEB; =@@@ CDDD >?8=@B >@@@ EDDD ?=E@>C ?@@@ BDDD @D>D=? 9@@@ ;DDDD @CB>D> 1@@@@ ;;DDD C?>CE= 5.$ +ducation &eposit Sche#e 9+&S47 "uration1 ;D years. (mount of monthly savings1 ?DD%;DDDD Tk. 7 rate of interest is yearly EJ. "ate of payment1 ;D%;? of every month. Cumulati!e total after end of duration .onthly Payment amount Bonus Bonus E Interest after end of duration <@@ ;?DD B=;E? 1@@@ =DDD ;E88C;

9@@@ :@@@ ;@@@ <@@@ =@@@ >@@@ ?@@@ 9@@@ 1@@@@ Re5uirement for the special scheme:


8@?C>8 ?>E;;? C8D>EC B;=E?E ;DB?=8D ;=CC@D= ;>?BBC> ;@>=8>? ;E=>C;C

#hotocopy of national '" of both nominee and client. =copy of passport si&e photograph which is attached by introducer and one copy of photograph of nominee which is attached by the client. Aalid introducer of particular branch. /lients must be ;E. 5.0 3onsu#er 3redit7 4ith 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 ,/onsumers2 /redit Scheme-, with the following features1 #li i"ility 1 #ermanent employees with ? years( service in !ovt., Semi%!ovt. or ani-ation and (utonomous 7 reco ni-ed bodies. 1 .a$imum Tk. ;.DD lac. 1C?1=? 1;>.DDJ 1 .onthly installment. 1 .a$imum 8 years. 1 a< 3ypothecation of consumer goods to be purchased. b< Letter of guarantee from the employer. c< No objection certificate 7 salary certificate from employer. d< Lien on provident fund0gratuity. 1 (ll district branches and the corporate branches.

Loan Limit /e"t$e5uity ratio Interest rate1'8e8f8 @1G Septem"er 9@@9) .ode of repayment Period of loan Security

/esi nated Branches

5.< %oan 1aci ity for &ia!onstic 3enter7 Sonali Bank Limited has launched a new loan scheme for ,"iagnostic /enter- to promote medical facilities. The salient features of the scheme are as follows1 +ature of loan /e"t$e5uity ratio Interest rate1'8e8f8 @1G Septem"er 9@@9) Primary Security Collateral Security Period of Loan 5.1> Specia S#a 3redit Sche#e7 Sonali Bank Limited has launched a loan scheme for ,Teachers and 6mployees- to enhance their living standards. The salient features of the scheme are as follows1 #li i"ility 1 #ermanent employees and teachers with : years( service in !ovt., Semi%!ovt. or ani-ation and (utonomous 7 reco ni-ed bodies. 1 Tk.=D, DDD to Tk. B.DD lacs. 1 .a$imum =DJ of loan limit. 1;=.DDJ 1 .onthly installment. 1 .a$imum 8 years. #ersonal computer, printer, scanner. Sewing and embroidery machine. *efrigerator, free&er, television, furniture and electronic fan. .otor cycle or by cycle. Solar power or bio%gas plant. Nursery or vegetable firm. #oultry, dairy, fishery plant. 1 /ash /redit H3ypothecation<. 1 @D1>D 1 ;>.DDJ 1 Stock of /hemicals, K%ray papers, 'njection Syringe, .edicine etc. 1 /ollateral security twice the value of the loan is re uired. 1 5ne Gear.

Loan Limit .ar in Interest rate1'8e8f8 @1G Septem"er 9@@9) .ode of repayment Period of loan Products purchased "y the loan

.arketing of agricultural products.

/esi nated Branches

1 (ll district branches and the corporate branches.

5.11 1orei!n +#p oy#ent 3redit Sche#e7 Sonali Bank Limited has launched a loan scheme for ,+oreign employment- to bear their air heir, commission and charges for foreign employment agency. The salient features of the scheme are as follows1 #li i"ility 1 Ban ladeshi permanent employees in forei n countries 'ho has 'ork permit and !isa. 1 .a$imum Tk. 8.DD lacs. 1;=.DDJ 1 .onthly installment. 1 8 months grace period and .a$imum 8 years. 1 (ll district branches and the corporate branches.

Loan Limit Interest rate1'8e8f8 @1G Septem"er 9@@9) .ode of repayment Period of loan /esi nated Branches

".1 8erfor#ance at a ! ance HTk. in crore< 3ear 0otal Income 0otal #Fpenses 0otal &peratin Profit +et ProfitC+et Loss Paid$up Capital Reser!e Fund /eposits Ad!ances #Fport Import +o8 of #mployees: &fficer Staff 0otal 9@@? =@@=.;D =?DD.>; ;@;.@B =8;.;; BDD.DD ;=>@.B? 8@>8E.@D =8;;@.@@ ;E=E8.>@ ;@>=D.ED ;;?DC ;D88= 9@@> ;>=B.D= ;DD>.8= >=>.CD BC.8@ BDD.DD ;;B@.=E 8=EBB.C= =D@8>.C@ ;CD==.>= EEE;.B@ ;;C@B ;DCC8 9@@= =8;8.;C =D;=.?B 8DD.?E H8@=C.?@< ?DD.DD =E8.;8 8D=8D.8D =>;D=.B8 ;CE;>.>D E=CB.@D ;=;;E ;;;?? 9@@< ;BE@.8B ;?BD.D8 8B@.8@ =D.ED 8=C.== 8D8.>D =CCDC.BD ==CDD.B@ ;8B?C.8@ ;=BE>.8; ;=8ED ;;??8 9@@; ;?C?.E> ;>ED.?B B?.=? ;?.C? 8=C.== =E8.>D =?==8.8B ;@E=E.8D ;=C?B.=E B;?8.EB ;=C8= ;;C;E






+o8 of Branches: Ar"an Rural 0otal

?@8 @;B

?@= @=;

?@= @=;

?@= @=;

>BD @B@






".2 3o##on/si6e State#ent 9'a ance Sheet4 PR&P#R03 A+/ ASS#0S Cash Cash in hand 1includin forei n currency) Balance 'ith Ban ladesh Bank and its a entBank Balance 'ith other Banks and financial institutions In Ban ladesh &utside Ban ladesh .oney at call and short notice In!estments: *o!ernment &thers Loans and Ad!ances LoansG Cash CreditsG &!erdrafts etc8 Bills purchased, discounted FiFed assets includin premisesG furniture and fiFtures &ther assets 0otal Assets LIABILI0I#S A+/ CAPI0AL Lia"ilities Borro'in s from other "anksG financial institutions and a ents /eposit and other accounts Current Accounts and other Accounts Bills paya"le Sa!in s Bank /eposits FiFed /eposits &ther /eposits &ther Lia"ilities 0otal Lia"ilities CapitalC Shareholder(s #5uity Paid up capital 0A2A 9@G=;1G<99G19? >,8@@,E;8,E?= ;@,=C>,CCE,8>@ 9G9>9G>1>G:<9 ?,=@?,E;B,DDD >,C;8,EBE,8?B 9<@G?<>G:=@ 9<G@9:G9;1G199 B8,B>C,E>8,DCD ;,;>?,8BE,;=B 9:1G1==G<>9G;=< =DE,;E>,8E>,D=? ==,BE=,;B?,>>D 9G99@G99>G==: 19<G?9:G9::G@>; ;99G9;=G1;?G:1? D ;81?>:999 D.EE?E@D= 8.8D;?8=C 98@9;<@;= ;.D@E=8>; D.B?@=CD? @8@<@??9; 19899@>9> ;B.D?E>8B D.=8=8?CC ;=8?9;?9< >=.=8=@E8 >.@@==;== 98@19<>?; 9<8<:?9;9 1@@

<;<G9<<G=91 :=;G:?<G9>@G9:1 BE,CB?,?=8,8EB @,@>=,B=>,=CB ;=D,>=8,;@;,>8= ;8E,?=>,8@;,E8; D 1@:G<9=G<@>G<<9 ;=?G<9?G;:;G1?1 B,DDD,DDD,DDD

@811@><:= >:899@@:= =D.D>;E>B ;.8>C?B@8 =>.>=B=C8 =E.;D;8;C D 918@1<>?= 9<8@;=<>= ;.E=?C?C=

Statutory Reser!e &ther Reser!e Surplus in Profit and Loss ACC C Retained #arnin s 0otal Shareholders( #5uity 0otal Lia"ilities and Shareholders( #5uity ".$ Sensitivity .na ysis Particulars *i!en /ata 19@@9) 'nterest income 'nterest paid on deposit +et Interest income 'nvestment income /ommission, e$change 7 brokerage 5ther operating income 0otal &peratin Income 1A) Salary and allowance *ent, Ta$es, 'nsurance, electricity etc. Legal e$penses #ostage, stamp, telecommunication etc. Stationary, #rinting, (dvertisement etc. /hief 6$ecutive2s Salary and fees "irector2s fees (uditor2s fees /harges on loan losses "epreciation and repair of bank assets 5ther 6$penses 0otal &peratin eFpenses "efore amorti-ation (morti&ation of 'ntangible (ssets 0otal operatin eFpenses 1B) ProfitC 1Loss) "efore pro!ision 1CJA$B) #rovision for loan #rovision for diminution in value of investments 5ther provision 0otal Pro!ision 1/) 0otal ProfitC1Loss) "efore taFes 1C$/) Pro!ision for taFation ;C@E8;DE==8 H;?EDDD=@B8B< 1??:@?19?; CCDB=>EBED @EEBB==C?= =E8@@C>=> 1=>=<99@;;@ C8C>=?CDD; >;D=E?=B? 8ECE=>BC CDB>8@B8 ;8E8C>;D> B@DDDDD ;C=B=>D E??DDD % ;B@CCB8C@ ;=;8E>CD;E 9;<<;<:99; ?DDDDDDDDD 1;;<<;<:99; 9:1@;=>91= $ H;;=DDDDD< H??DDDDDD< ==9@@@@@ 99;;9=>91=

8,;;@,>C@,?88 B,8?8,D;B,?;? =,B>E,=;E,DEB 9;G;1>G>1;G1:> ;99G9;=G1;?G:1?

D.@8==;>> ;.EBC8C;? D.?BEDE;= ;89<:;9;: 1@@

4hen Interest 4hen Interest income is 1@D income is 1@D increased decreased ;B>?;>;BD>? ;?B;>CBC>D; H;?EDDD=@B8B< H;?EDDD=@B8B< :<9<1;;<9?; :1>1;?9;:;@ CCDB=>EBED CCDB=>EBED @EEBB==C?= @EEBB==C?= =E8@@C>=> =E8@@C>=> <@1:;9?<1;@ ;=<9>==:;9= C8C>=?CDD; C8C>=?CDD; >;D=E?=B? >;D=E?=B? 8ECE=>BC 8ECE=>BC CDB>8@B8 CDB>8@B8 ;8E8C>;D> ;8E8C>;D> B@DDDDD B@DDDDD ;C=B=>D ;C=B=>D E??DDD E??DDD % % ;B@CCB8C@ ;B@CCB8C@ ;=;8E>CD;E ;=;8E>CD;E 9;<<;<:99; 9;<<;<:99; ?DDDDDDDDD 1;;<<;<:99; :<=>??:191= $ H;;=DDDDD< H??DDDDDD< ==9@@@@@ :<=19=:191= ?DDDDDDDDD 1;;<<;<:99; :91;991@9>9 $ H;;=DDDDD< H??DDDDDD< ==9@@@@@ :9@>=@1@9>9

/urrent ta$ "eferred ta$ +et Profit after 0aFation #arnin s Per Share 1#PS) ".0 Scenario .na ysis Particulars 'nterest income 'nterest paid on deposit +et Interest income 'nvestment income /ommission, e$change 7 brokerage 5ther operating income 0otal &peratin Income 1A) Salary and allowance *ent, Ta$es, 'nsurance, electricity etc. Legal e$penses #ostage, stamp, telecommunication etc. Stationary, #rinting, (dvertisement etc. /hief 6$ecutive2s Salary and fees "irector2s fees (uditor2s fees /harges on loan losses "epreciation and repair of bank assets 5ther 6$penses 0otal &peratin eFpenses "efore amorti-ation (morti&ation of 'ntangible (ssets 0otal operatin eFpenses 1B) ProfitC 1Loss) "efore pro!ision 1CJA$B) #rovision for loan #rovision for diminution in value of investments 5ther provision 0otal Pro!ision 1/) 0otal ProfitC1Loss) "efore taFes 1C$/) Pro!ision for taFation /urrent ta$

HBE;B>E?@C< =C>>>CB?B 1>@><@@=@?) 1<:=>===@? 1>8@?

HBE;B>E?@C< =C>>>CB?B 1>@><@@=@?) :=:9@1:9<9; ;@:8<<>@9?

HBE;B>E?@C< =C>>>CB?B 1>@><@@=@?) :9>?:<1@??@ :=;89=19:9

*i!en /ata 19@@9) ;C@E8;DE==8 H;?EDDD=@B8B< 1??:@?19?; CCDB=>EBED @EEBB==C?= =E8@@C>=> 1=>=<99@;;@ C8C>=?CDD; >;D=E?=B? 8ECE=>BC CDB>8@B8 ;8E8C>;D> B@DDDDD ;C=B=>D E??DDD % ;B@CCB8C@ ;=;8E>CD;E 9;<<;<:99; ?DDDDDDDDD 1;;<<;<:99; 9:1@;=>91= $ H;;=DDDDD< H??DDDDDD< ==9@@@@@ 99;;9=>91= HBE;B>E?@C<

Best Case ;B>?;>;BD>? H;?D;DD=??B=< :;;=1;;;=:> E>ED;C8ECE C?CEB;?D=C 8;=D8>;@@.> <@?:9<=>>@9 CDD??>>;?; 8EBCC;D8D.8 8@E>88C=.;? @C8B@?DE.8? ;8;>??8BE.E B;=DDDD ;@>=CCE E;==?D % ;E@B>D>DC.= ;;?8;?>@@C ?9?9=?@<=: >C?DDDDDDD 1:>:9=?@<=: :>@99??>1;= $ H;D@>DDDD< H?==?DDDD< =9?9@@@@ :>@:=99>1;= HB8=E?;;8E.C<

4orse Case ;?B;>CBC>D; H;@?BDD=E=E@< :9<@;?9<=?> @B8E8=>DE= @=DDB8D>CC =??8DD@E;.@ ;<?99:?@99> CC>=B@BE?; >8DCBB??B.E >DC=;@=;.E? C>>BDECC.@? ;>?=B=EDB.= ;DDEDDDD ;E;?CD= EBCC?D % =D@@;E8>>.E ;=C>?8B8@B 999?99<??< ?=?DDDDDDD 1<1>?99<??< :@>911<<@;9 $ H;;C@DDDD< H?CC?DDDD< =9<1@@@@ :@=<1=;<@;9 H;D8;D>?BB?<

"eferred ta$ +et Profit after 0aFation #arnin s Per Share 1#PS)

=C>>>CB?B 1>@><@@=@?) 1<:=>===@? 1>8@?

8D;EB=C?>.B 1=>919<<>>8=) :>>@9199>9; ;1?899@9<9<

=>CDD8;@8.; 1;9?><=:?8;) :1:9;<9@=?@ :;?8?9?@@>=

'n best case, we considered all the income are calculated as an increasing rate of ;DJ and all the e$penses as decreasing rate of ?J. 'n worst case, we considered all the e$penses as an increasing rate of ?Jand all the income as decreasing rate of ;DJ. +or the considerable percentages in best case 6#S has increased =>?8.;DJ and in worst case the 6#S is decreased =D>=.8;J. 1indin!s (s a largest commercial bank and the agent of Bangladesh Bank Sonali Bank has to do various types of work without thinking about the profit. +or this reason we have seen that in some cases bank has doing loss, but this loss we directly cannot say that bank failing los, this is happening only for helping the nation. 5n the other hand we have seen that the bank profit increasing rate is poor but increasing. The bank is highly li uid and earns much profit on owner2s e uity. Bank2s operating efficiency is good. 6#S is increasing double per year and earning spread is also increasing. So after all we can say that as a nationali&ed bank commercial bank Sonali Bank Limited is a bank which is earning better than other nationali&ed bank. 3on usion @ Reco#endation Conclusion: (s a bank Sonali Bank Limited has to do a lot of things for the betterment of the country. The Bank is strongly positioned in the market and with its core strengths it can match shareholders2 e$pectations and thus raise their wealth in future through ethical banking and best pricing. Thus, it has to take initiative so that it can fulfill the desire of the govt. as well as people. 't will enhance more public services and build up working teams to provide the best services to its valuable customers. 't must be run in organi&ed way and discipline must be ensured in all sphere of its performance. 6fficient e$port team, import team and remittance team must be formed and perform duties properly. .ore training, computeri&ation, data collection, market analysis and swiftness in servicing are essentially re uired. To do these the recommended suggestions can be used. (lthough it is theoretical suggestions, it is not valueless. 't has great impact on the banking business and other sectors of the economy. +or this, govt. help is essential and it is e$pected that govt. will broaden its hand for implementing the recommendations for the welfare of the people of Bangladesh. Recommendation:

The Top management of Sonali Bank Limited should be more effective to the employee then current situation. Because they should take care the branch level employee2s benefits, opportunities etc. The bank has highly skilled employee in the branch level. But the bank should be able to utili&e these employees at appropriate way to take out the bank2s output. The website design is need to improve. Therefore, the website should be changed and can put more information about the bank. The e$isting design cannot capture the customer2s attention. The che ue2s design is poor. The good looking che ue design can motivate the customer. The human resource division can be more effective. Because this human resource department should think about the employee benefit much. 'n the training institute, the training process should be used latest technology to provide to the trainee. The bank should give training about the office package, basic idea on computer and internet. 'n the branch level when employees could transfer to another department during that time that employee is needed at least ten days training according on the transfer position. The higher management should be more effective about the employee, to take right strategy, right decision making. 'n the branch level employee is working so many e$tra time, so management should provide some e$tra incentives to motivate the employee. 5n%line banking is coming soon so the responsible employee should be trained effectively. The training evaluation process and form is to be more moderni&ed. #hysical and technological facilities should be increased in evaluating credit proposals. 'nfrastructure should be moderni&ed. The cost of fund needs to be minimi&ed. The gap between employees and customers will be reduced through arranging meetings.