Letter of Transmittal

March 08, 2021

Professor
Dr.Shaikh Moksadur Moksadur Rahman
Department of Management Studies
Comilla University
Sub: Submission of Internship Report.
Respected Sir,
It is my great pleasure that I submit the internship report “An Analysis of the E-Banking Services of
Sonali Bank Limited (SBL) “as partial requirement of internship program under BBA curriculum. I
have collected as much information as I could able to collect from SBL and other sources. This 3
month’s work in SBL was a valuable experience for my entire career. I shall be highly grateful and
elevated if you kindly accept my work and evaluate it with your wise judgment. I believe that this
internship program has enriched both my knowledge and experience. If you have further queries
regarding this report, please let me know. I have tried, with the best of my capabilities, to
accommodate much information and relevant issues as possible and tried to follow instruction as you
suggested. I sincerely believe that it will satisfy your requirement.
I pray and hope that you would be kind enough to accept my internship report and oblige thereby.
Sincerely Yours,

Rezwan Hossain
ID-11605032
Registration No-BBA 11605032
10th Batch, Session: 2015-2016
Department of Management Studies
Comilla University, Cumilla
Declaration of the Candidate
I, Rezwan Hossain hereby declare that the presented report of internship titled An Analysis of the E-
Banking Services of Sonali Bank Limited is uniquely prepared by me under the supervision of
Dr.Shaikh Moksadur Moksadur Rahman, Professor, Department of Management Studies, Comilla
University, after the completion of three month’s internship at the Sonali Bank Limited.

I confirm that, the report is only prepared for my academic requirement not for any other purposes
and the internship report is submitted in the parts of requirements for the completion of the Degree of
Bachelor of Business Administration (BBA).

I also insure that the information embodied in this report have not been submitted to any other
Universities or Institutions for the grant of any degree or diploma. It might not be used with the
interest of opposite party of the company.

Rezwan Hossain
ID-11605032
Registration No-BBA 11605032
10th Batch, Session: 2015-2016
Department Of Management Studies
Comilla University, Comilla
Certificate of the Supervisor
This is to certify that Rezwan Hossain, a student of Management Studies Department,
ID No: 11605032, Registration No: BBA 11605032 successfully completed his
internship program entitled “An Analysis of the E-Banking Services of Sonali Bank
Limited ”(GaffargaonBranch,Mymensingh) under my supervision as the partial
fulfillment for the award of BBA degree.

He has done his job according to my supervision and guidance. He has tried his best to
do this successfully. I think this program will help his in the future to build up his
career.

I wish his success and prosperity.

With best regards,

Dr.Shaikh Moksadur Rahman

Professor
Department of Management Studies
Comilla University, Cumilla
Acknowledgement
At the beginning I would like to express my deepest gratitude to Almighty Allah for giving me the
strength and the composure to finish the task and the most merciful blessing with patience and
tenacity of mind to complete the requirements for the degree successfully and outstanding supervision
by which it has been possible for me to make a good combination of. The internship has been a very
good experience for me in the way that it has given me the chance to understand the real world
outside the classroom. I’ve learnt a lot about the office environment and my interpersonal skills &
self-confidence have improved significantly. Firstly, I express my deep sense of gratitude to my
honorable Supervisor Dr.Shaikh Moksadur Moksadur Rahman, Professor, Comilla University) for his
endeavor approach theoretical & practical knowledge in preparing this report. I forfeit my respect to
Md Rezaul Hassan to Sonali Bank Limited (SBL), Senior Principal Officer & Manager of Gaffargaon
Branch, Mymensingh under whom I have learnt a lot of practical knowledge. Also his guidance,
advice and cooperation allowed me to complete this report successfully. Without their kind
supervision, preparing this report would have been very difficult. I am also thankful to them for
providing me all the relevant and available information to have a clear concept regarding the subject.
I am also grateful to other employees of Sonali Bank Limited of Gaffargaon Branch as well as Md
Gaziur Rahaman, Senior Officer (SO) & Joint Custodian (General). Md Habibur Rahman (Senior
Officer Cash), Mehdi Hasan (SO),Farhana Akter (GB In-charge), Airin Ferdaous (Executive Officer),
for cooperation and direction in getting necessary information..

Finally, I would like to convey my gratitude to my entire teacher’s, friends and many others who
extended their support to prepare this report.
Thanks to all from the core of my heart.
Sincerely Yours,

Rezwan Hossain
ID: 11605032
Registration No: BBA 11605032
10th Batch, Session: 2015-2016
Department of Management Studies
Comilla University, Cumilla.
Executive Summary
The report emphasize on the “An Analysis of the E-Banking Services of Sonali Bank Ltd”,
Gaffargaon Branch, Mymensingh” wide scope of banking and money related exercises to people,
firms, and corporate bodies and other global organizations just as items and administrations offered
by the bank to its clients so as to keep up nature of administration. Bank activities can be isolated into
three classes. These are general banking activities, credit or loan advance activities and remote
Exchange activities. Credit or loan and advance activities do the most significant works of the bank.
Bank's primary undertaking is to gather store from surplus unit and give loan to the shortfall unit.
Bangladesh is a creating country. Remittance implies move of cash starting with one then onto the
next. Bank gives this office to their customer as a part of basic administrations gave to them. The
exchange of cash can happen either inside the country or starting with one country then onto the next.
Remittance is most significant part of a country's economy. For the creating nations like Bangladesh
remittance assumes a brilliant job in GDP development. This report contains four chapters. The
primary chapter of the report portrays the early on expressions of the entry level position report in
which Introduction of point, Objectives of the examination, Significance of the investigation,
Methodology and Limitations. The subsequent chapter contains the diagram of SBL. Chapter three
contains adapting part of the examination. Various proposals, discoveries, suggestions and end have
come toward the finish of the report in the chapter four. The issues discoveries during the three
months in length temporary job period and proposals are given from perception. To build the
adequacy in customer administration SBL should attempt to build up the way toward giving
administrations. SBL has passed far since it is giving administrations. As of now it has earned a solid
situation in the field of customer administration. To proceed or to hold the position and be impeccable
in this segment it should hold increasingly more thoughtfulness regarding the customer maintenance
and improvement.
Acronyms
SL No Abbreviation Elaboration
01 ATM Automated Teller Machine
02 BLC Bills under letter of credit
03 CC Cash Credit
04 DD Current Deposit
05 CBS Core Banking Software
06 CSR Corporate Social Responsibility
07 DA Documents Against Acceptance
08 DD Demand Draft
09 DP Demand Promissory Note
10 ECC Export Cash Credit
11 FDR Fixed Deposit Receipt
12 IRC Import Registration Certificate
13 LIM Loan Against Imported
Merchandise
14 LTR Loan Against Trust Receipts
15 LBP(D) Local Bill Purchase by
Documents
16 LBP(C) Local Bill Purchase by Clean
17 LBP(F) Local Bill Purchase by Foreign
18 LTD Long Term Deposit
19 LG Letter of Guarantee
20 MT Mail Transfer
21 OD Over Draft
22 PAD Payment Against Document
23 PL Project Loan
24 PO Payment Order
25 PC Packing Credit
26 SBL Sonali Bank Limited
27 SS Savings Certificate
28 STD Short Term Deposit
29 SWIFT Society for Worldwide Interbank
Financial Telecommunication
30 TT Telegraphic Transfer
Contents
Chapter-01...........................................................................................................................................................1
Introduction.........................................................................................................................................................1
1.0 Introduction...................................................................................................................................................1
1.1 Background of the study............................................................................................................................1
1.2 Origin of the Report...................................................................................................................................2
1.3 Rational of the Study.................................................................................................................................2
1.4 Purpose of the Study..................................................................................................................................2
1.5 Scope of the study......................................................................................................................................3
1.6 Methodology of the Study..........................................................................................................................3
1.7 Limitations of the Study.............................................................................................................................4
Chapter-2............................................................................................................................................................. 5
Literature Review................................................................................................................................................5
2.1 Electronic Banking....................................................................................................................................5
2.2 Customer Requirement..............................................................................................................................6
2.3 Customer Satisfaction................................................................................................................................6
Chapter-03...........................................................................................................................................................7
An Overview of Sonali Bank Limited.................................................................................................................7
3.1 History of Sonali Bank Limited.................................................................................................................7
3.2 Vision & Mission.......................................................................................................................................7
3.3 Core business of Sonali Bank....................................................................................................................8
3.4 SWOT Analysis of Sonali Bank Ltd..........................................................................................................9
3.5 Corporate Profile......................................................................................................................................11
3.6 Some Notable Features of the Bank.........................................................................................................12
3.7 Hierarchy of Sonali Bank Limited...........................................................................................................13
3.8 Organizational Structure..........................................................................................................................14
3.9 Services of Sonali Bank Limited..............................................................................................................15
3.10 Other Activities Memorandum of Understanding (MOU).....................................................................17
3.11 Products of Sonali Bank Ltd..................................................................................................................18
3.12 Types of Account...................................................................................................................................18
3.13 Remittance.............................................................................................................................................19
3.14 Duties Performed in the General Banking..............................................................................................19
3.15 Core values of SBL................................................................................................................................20
3.16 Deposit Scheme.....................................................................................................................................21
3.17 Clearimg House.....................................................................................................................................22
 3.18 Objectives for BACH.............................................................................................................................22
3.18 Cash Credit(CC)....................................................................................................................................24
3.19 Pledge....................................................................................................................................................24
3.20 Modes of Charging Securities................................................................................................................26
Chapter-04.........................................................................................................................................................27
An Overview of E-Banking...............................................................................................................................27
4.1 Internet.....................................................................................................................................................27
4.2 E-banking.................................................................................................................................................28
4.3 The History of E- Banking.......................................................................................................................28
4.4 Types of E-Banking.................................................................................................................................29
4.5 Products and Services of E- Banking.......................................................................................................32
Chapter-05.........................................................................................................................................................33
E- Banking in Bangladesh.................................................................................................................................33
5.1 E- Banking...............................................................................................................................................33
5.2 Structure of Electronic Banking...............................................................................................................33
5.3 Debit & Credit cards................................................................................................................................34
5.4 Banking through mobile apps..................................................................................................................34
5.5 Features of electronic banking in Bangladesh..........................................................................................35
Chapter-06.........................................................................................................................................................36
E-Banking Services of Sonali Bank Limited.....................................................................................................36
6.1 General Banking services.........................................................................................................................36
6.2 SBL ATM................................................................................................................................................37
6.3 Online and SMS Banking........................................................................................................................37
6.4 Features of SBL Q-Cash ATM Network..................................................................................................37
6.5 Debit/Credit Card services.......................................................................................................................38
Chapter-07.........................................................................................................................................................39
Foreign Exchange of Sonali Bank Limited........................................................................................................39
7.1 Foreign Exchange....................................................................................................................................39
7.2 Functions of Foreign Exchange................................................................................................................40
7.3 More types of commercial letter of credit at Sonali bank.........................................................................40
7.4 Procedures of opening the letter of credit (LC)........................................................................................41
Chapter-08.........................................................................................................................................................42
Findings............................................................................................................................................................. 42
Chapter-09.........................................................................................................................................................47
Problems............................................................................................................................................................47
9.1 Problems found in SBL............................................................................................................................47
9.2 Problems relating to Branch Computerization.........................................................................................47
 9.3 Problems relating to Q cash network.......................................................................................................47
Chapter-10.........................................................................................................................................................48
Recommendation & Conclusion........................................................................................................................48
References.........................................................................................................................................................52
Appendix...........................................................................................................................................................53

Chapter-01
Introduction
1.0 Introduction
In the present world money is circulated all over the globe. Globalization, technological advances and
other factors money is circulating unimaginably .Financial Institutions mainly Banks play a Pivotal
role in matching a depositor and lenders and channeling money and making the Economy more
efficient. Although the history of Banking goes back to the 14th century in Europe but Banks are now
everywhere. Banks in Bangladesh play a significant role compared to other financial Institutions.
The competition in the banking industry has intensified more than ever before. Global financial crisis,
share market crash, recessions and other factors affected the banking industry. So banks should
position themselves at a unique place in the minds of the customers by offering attractive offers such
as higher interest rates or by offering superior service to the customers. Services include financial
advice, flexible rates or dates of payment, portfolio management etc.
E- Banking is a service offered to the customers which includes viewing the balances on accounts,
checking the transactions, downloading useful information, transfer of funds, paying third parties,
making loan applications etc. from a secured website of the bank. E- Banking has opened up a new
field of competition for banks. To operate online an individual needs the customer number and
password. E- Banking has started in the 1980s but it is relatively a new concept in Bangladesh.
Customer satisfaction is positively related to E- Banking. It is believed that customers are the king of
the market place today. The competition in the banking industry is intensifying and it is the bank’s
priority to satisfy its respective customer.
1.1 Background of the study
This internship report is originated as a partial fulfillment of the BBA program. This report is a
mandatory requirement for completion of BBA. I have worked at Sonali Bank at Gaffargaon branch
for 25 days and the experience of working at Sonali Bank has helped me to match my theoretical
knowledge with practical understanding. As an intern of Sonali Bank I was provided with the topic
“An analysis of the E- Banking services of Sonali Bank”.

1.2 Origin of the Report

After completion of all the required courses of BBA program under Comilla University, it is an
obligatory part to get involved in a practical and professional environment. So I had joined in the
Sonali Bank Ltd, Gaffargaon Branch, and Mymensingh for three months to complete the BBA
program. This branch plays out the whole managing an account exercises including General Banking,
Foreign Exchange and Credit and Loan division. Accordingly, one can go without much of a stretch
gain learning of both straightforward and confused managing account tasks from the exercises of this
branch. So I choose Sonali Bank Ltd, Gaffargaon Branch as a sampling area to prepare this internship
report. This report is the yield of my user experience which I accumulated during my internship.
 1.3 Rational of the Study
This study has been done in order to fulfill the requirements to obtain my graduation fromComilla
University. I am proposing this research topic based on my practical work experience gathered within
3 months in this branch of SBL which was previously known as the Sonali Bank, Gafargaon Branch,
and Mymensingh. It is situated in the heart of the main town, Gaffargaon, which attracts a lot of
customers every working day of the week. In the branch I worked in, it had almost all the general
banking services, which are performed by other commercial banks in Bangladesh. Any person with
the interest of learning the modern banking process adopted by Sonali Bank and those who want to
build a career in banking sector can be benefitted through this comprehensive report on “An Analysis
of the E-Banking Services of Sonali Bank Ltd.”

1.4 Purpose of the Study

 To evaluate E- Banking System of Sonali Bank Limited.
 To find out the customers demand from Sonali Bank’s E- Banking service.
 To identify the satisfaction level.
 To identify the relationship between E- Banking and customer satisfaction.
 To find out the problems and give some necessary suggestions.
 To know the benefits that is paid to the employees.
 To know about the retirement plans.
 To evaluate performance of E-banking system in SBL
 To identify customer expectations from E-banking system of SBL

1.5 Scope of the study

I have collected all the necessary documents used writing this report from SBL Gaffargaon Branch,
Mymensingh, during the period of my internship program. I had the opportunity to work with
different sections of the bank, I started my first day in the Remittance section and cycled my way
through debiting & crediting bank accounts, account opening booth, chequebookRe-issuing, handling
pay orders, sorting and checking vouchers, forwarding official documents, through registered and
couriers, SME Loan renewals, SMA (Special Mention Account) Loan Collection etc. I have collected
valuable opinions of 35 respondents who willingly helped me by giving their precious time and
sharing their thoughts on e-banking of Sonali Bank Limited.
 1.6 Methodology of the Study
Data collection:
Primary data was collected from the user of E bank services of sonali bank, Gaffargaon Branch by
conducting a survey on their requirement. Secondary data was collected from various web sites,
previous work on Sonali Bank. Survey was conducted by using likert scale.
Sampling method:
Random sampling method was used. Sample was collected from the customers who regularly or
frequently visit the branch office to take services provided by bank.
Sample size:
Sample size is 20. From these 20 customers 50% are male and 50% are female respondent.
Data analysis:
Data was analyzed by using mean, mode and percentage. To complete the study I did not use any
satirical software.

1.7 Limitations of the Study

 Very small sample size
 Less time to complete report
 Data Demands to be processed in such high profile statistical tools such as STATA or SPSS
 Some respondents were neither motivated nor interested in expressing their honest opinions.
 Results are calculated manually
 Supply of more practical and contemporary data was another shortcoming
 The allocated time was not enough for getting a sound knowledge about the study
 Lake of Experience
 Non-availability of the most recent statistical data.
  This report has been prepared based on only few days’ work experience.
 Number of survey respondents is kept very short, small sample size.
 Access to confidential information about the bank was restricted.
 Lack of statistical data because the topic is heavily subjective.
 Results are calculated manually. Data demands to be processed in professional statistical
 Tool as SPSS.
 Some survey respondents were not very interested or eager to express their honest opinion.
 Finally, my personal inadequacy of knowledge especially in research work.

Chapter-2
Literature Review

2.1 Electronic Banking

Electronic banking, often called as online banking/ internet banking is one of the most precious
Blessings of having worldwide internet connectivity which has made baking much simpler, less
Time consuming and secured. Electronic banking, in short e-banking simply means performing
Usual personal banking activities through internet from anywhere, anytime under the protection of
Bank identifiers. E-banking allows its’ users to pay invoices, receive payments, even make
Transactions with foreign users easily and securely while keeping the time needed for those services
very short. Banks and financial institutions from all over the world are adopting e-banking fast.
Sending and receiving money from a country to country has now become easier than ever.
Computerization and introducing e-banking services in the banks has enabled the banks to reduce
their costs in many ways, which allows them to offer more attractive interest rates to their clients.
Also, maintaining bank user accounts online is much easier and cost effective than keeping Physical
record books and ledgers. E-banking enables customers to save their time as there is no Queue to
stand behind to get banking services. The next generation e-banking services are already in action, for
example mobile banking. Mobile banking is a sub-section of e-banking which makes banking even
more easily than ever before. The downside of older e-banking was people needed to go to the nearest
bank branch to collect and get cash on their hands. Mobile banking was introduced to get rid of that
problem and make cash available to get whenever possible for the Customers. Another favorable gift
of having online banking is the presence of ATM ("At the Moment" or "Automated Teller Machine")
or known as “cash machine” booths, which are kept Open and functioning 24 hours a day, 7 days a
week. On-line, real-time banking services have now become a birth right of the customer as the
customer demands the flexibility of operating an Account in any branch of a bank irrespective of
which branch the account was domiciled (Banking is the fastest growing service that banks can offer
in order to gain and retain new customers (Moody, 2002).
The rise of E-Banking is also due to its number of benefits for both the provider and the customer as
well. From the bank’s perspective these are mainly related to cost savings (Sathye, 1999; Robinson,
2000) and E-Banking remains one of the cheapest and more efficient delivery channels (see
Pikkarainen et al., 2004).

Arunachalam and Sivasubramanian (2007) content that Internet banking is where customer can access
his or her bank account via the Internet using PC or mobile phone and web-browser.
Ongkasuwan and Tantichattanon (2002) defined Internet banking service as banking service that
allows customers to access and perform financial transactions on their bank accounts from their
Computers with Internet connection.
On-line, real-time banking services have now become a birth right of the customer as the customer
demands the flexibility of operating an account in any branch of a bank irrespective of which branch
the account was domiciled (Bank Away, 2001).
E-service quality can be explained as an overall customer evaluation about e-service delivery in the
marketplace which is virtual Santos, J. (2003).
2.2 Customer Requirement
Customer requirement means the utilities from a products and services wanted by customer before
adopting any product or service (P.Kotler)
2.3 Customer Satisfaction
A satisfied customer will repeat the purchase of the product and convey positive messages about it to
others (Dispensa, 1997; Metawa and Almossawi, 1998).
The complex nature of services coupled with the growing province of the service sector has increased
the need for better customer satisfaction. Banking and financial services are an important part of the
service industry (Mishkin, 2001).
Customer satisfaction is typically defined as a post consumption evaluative judgment concerning a
specific product or service (Gunderson, Heide and Olsson, 1996. The most widely accepted
conceptualization of the customer satisfaction concept is the expectancy disconfirmation theory
(McQuitty, Finn and Wiley, 2000).
According to Saha and Zhao (2005), customer satisfaction is defined as a collection of outcome of
perception, evaluation and psychological reactions to the consumption experience with a
product/service.
In other words, Saha and Zhao further defined customer satisfaction as a result of a cognitive and
affective evaluation where some comparison standard is compared to the actually perceived
performance. If the performance perceived is less than expected, customers will be dissatisfied. On
the other hand, if the perceived performance exceeds expectations, customer will be satisfied.

Chapter-03
An Overview of Sonali Bank Limited
3.1 History of Sonali Bank Limited
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 Chief Executive Officer &
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, and the main commercial center of
the capital.
3.2 Vision & Mission
Vision: Socially committed leading banking institution with global presence.
Mission: Dedicated to extend a whole range of quality products that support divergent needs of
people aiming at enriching their lives, creating value for the stakeholders and contributing towards
socio-economic development of the country.
Slogan: “Your trusted partner in innovating banking”.

3.3 Core business of Sonali Bank

Sonali Bank Limited operates the following services:
 Corporate Banking is a core business of Sonali Bank Ltd.
 Sonali Bank LTD also invests in different financial project.
 Sonali Bank invests more in Consumer credit & SME Finance.
 Trade Finance is another important business of Sonali Bank Ltd.
 Loan Syndication is one of the regular business or service of the bank.
 Sonali Bank earns more in Foreign Exchange service.
Besides that, Sonali bank operates Loan syndication, Remittance, capital market operations are the
core businesses of the bank.
Head Office
Amongst the entire public bank of Bangladesh Sonali Bank is the one of the largest. Now the bank
wantsto call for shares.
The location of the Sonali Bank Head Office is Motijheel Commercial Area, Dhaka 1000.
Schemes-Offered by Sonali Bank Limited
Sonali Bank Limited provides various services to their clients. With the strong co-ordination and
assistance of all the branches, the bank operates following activities:
 Customers are now enjoying various services from Sonali bank Limited.
 Customers can submit their money of Gas, Water, Electricity Bills, and Tax through the bank
online and offline services.
Islamic Banking Services
 Sonali Bank Ltd. also provides deposit products-
 Al- Waddeah Current Account.
 Mudaraba Savings Account.
 Mudaraba Special Notice Deposit Account. And
 Mudaraba Term Deposit Account.
Mails receive and dispatch section.
Mails and dispatch section of a bank keeps all of the records of letters, memorandums, documents etc.
The bank follows two methods while registering the mails. The local mail register book is for internal
letters and external letters are managed in registered mail register During my internship, I got an
opportunity to work with this section. All of the business letters, statements, and cheques,
applications which are sent to branch, office, post office, head office and other business organizations
are kept in outward register. If the business letters, cheques, statements come to the office, the officer
enter it inward register with number. Numbering of the documents is very important to explore the
account when it is needed.

3.4 SWOT Analysis of Sonali Bank Ltd.

Strengths:
Strengths of a company defines its core competencies, knowledge and skills and how powerful the
resources than that of its competitors. During my internship period, I got an opportunity to observe
sonali bank ltd strengths in relative field practically. The strengths of sonali bank limited are given
below-
 As the bank is largest bank in our country, it has total of 1226 branches. Thus it has advanced
 and vast network capability across the country.
 The bank has skilled and trained manpower.
 The bank has well-established supportability arrangements concerning illustration are shown
in its approach with differentiating its accordance from claiming saving money benefits of the
business.
 As SBL is a Government bank, it gets support from government.
 SBL is the leading commercial bank in our country. Thus it has received a positive image
among the people.
 All of the officials are very much cordial and friendly. They take challenges of providing
outstanding and standard customer facility to the people.
 SBL maintains and believe in trained personnel.
 Sonali Bank Staff Colleauge is such an institution which provides training and mentoring each
of the officials of the respective bank.

Weaknesses:
 The inability or absence of sufficient resources is termed as weakness of a company which
affects the overall growth of an organization. The weaknesses of the bank are-
 Sonali bank ltd lacks of using modern banking tools and technology.
 The bank does not use any IT applications.
 The bank has no established strategic plan for accomplishing its goal for long term. It needs to
be fixed now in order to gain the competitive advantage than the other multinational bank.
 The bank has failed to maintain a standard recruitment policy for its mid-level and lower level
positions.
 As a result, currently the service quality of Sonali Bank Limited has fallen.

Opportunities:
Opportunities are seen as the helping force of any company in order to compete with the challenges in
the long term. If an organization gets a favorable support in competitive environment that is signified
as future growth or opportunities of a company.
The opportunities of Sonali Bank Ltd are given here-
 As the company has a wide and advanced network, the management can think of starting
merchant banking. By using local branches and foreign subsidiaries, Sonali Bank Ltd. can
 come up with new and effective business portfolio.
 Majority of our people is lower middle-class or lower class.
 Since the bank has broad image of rural people, retail lending can be useful for them.
 Sonali Bank has to develop and decorate their consumer finance schemes in a way so that it
becomes easy for the bank to explore more markets in rural areas.
 SBL has a satisfactory result in remittance sector.
 The management can offer more customer oriented facilities because there has an increasing
demand for that.
Threats:
 Less motivated workforce.
 SBL facing hard competition with multinational and private banks.
 The practice of online banking and mobile banking system

3.5 Corporate Profile

Name of the Company Sonali Bank Limited

Chairman Mr. ZiaulHasanSiddiqui

CEO & Managing Director Mr. Md. AtaurRahmanProdhan

Company Secretary Mr. Tauhidul Islam
Legal Status Public limited Company
Genesis Emerged as Nationalized Commercial Bank in
1972, following the Bangladesh Bank
(Nationalization) Order No. 1972 (PO No.26 of
1972)
Date of Incorporation 03 June,2007
 Date of Vendor’s Agreement 15 November,2007
Registered office 35-42,44 Motijheel commercial
Area,Dhaka,Banhladesh
Authorized Capital Taka 6000.00 Crore
Paid-up Capital Taka 4530.00 Crore
Number of Employee 19,609
Number of Branches 1226
Phone-PABX 9550426-31, 33, 34, 9552924
FAX 88-02-9561410, 9552007
SWIFT BSONBDDH
Website www.sonalibank.com.bd
E-mail itd@sonalibank.com.bd

3.6 Some Notable Features of the Bank

Capital Structure
Authorized Capital
Tk. 6000.00 Crore

Paid-up Capital Tk. 4530.00 Crore

Branches & Subsidiaries
Total No of Branches 1226
a.No of Foreign Branches 2
b.No of Local Branches 1224
c.No of Rural Branches 725
d.No of Urban Branches 499
No of Regional offices 16
No of Principal offices 46
Representative Offices 3: 1(One) in Jeddah, KSA; 1 (One) in Riyadh,
KSA and 1 (One) in Kuwait.
No of GM offices 11
Correspondent 639

Subsidiaries:

Sonali Exchange Company Incorporated (SECI) having 10 (Ten) branches in USA.

Sonali Investment Limited (Merchant Banking) having 4 (Four) branches at Motijheel,
Paltan, Uttara, Mirpur in Dhaka and 1 (One) branch in Khulna, Bangladesh.

Associates:
Sonali Bank (UK) Limited having 2 (Two) branches in UK.
Sonali Polaris FT Limited.
Representative Offices:
Total 3, respectively in Jeddah, KSA; Riyadh, KSA and in Kuwait.
Correspondence: 639

3.7 Hierarchy of Sonali Bank Limited

Management
The management of the bank is vested on a board of directors, subject to overall supervision and
directions on policy matters by the board which is constituted in terms of Bangladesh bank
(Nationalization) Order 1972.
Board of directors, constituted by seven members hasAuthority to organize, operate and manage its
affairs on commercial consideration within the board policy of government. There are directors
appointed by the government. Other members of the board including MD are also government
appointed out of that at least three have the experience in the field of Finance, Banking, Trade,
Commerce, Industry and Agriculture. The managing director is the Chief Executive of bank. He
executes all the activities under the direction of board. All line and staff personnel of banks are own
recruitment except member of board of Direction.

Board of Directors

Managing Director & CEO

 General Managers at Head office General Managers Field GM Office at Division

DGM at Field office

3.8 Organizational Structure

Sonali Bank is the largest nationalized commercial bank of Bangladesh. It has 1226 branches
throughout the country. It has also two overseas branches. The Head Office of the bank is located at
the Motijheel commercial are, Dhaka. The Divisions are headed by the DGMs and the departments
are by AGMs. There are also many sections under every department in the Head Office. A DGM is
the chief of the Principal office and an AGM usually runs a regional office. Principal offices are the
local points of the bank’s administrative zone in the districts. The regional offices are under control
and supervision of principal offices. The offices are situated at Thana level within the districts. The
corporate branches are nearly equivalent to the GM office and usually headed by the DGMs. They
provide all the banking services such as general banking, loans & advances etc. Functional hierarchy
of Sonali bank is given below:

Head Office

General
General Managers Office at Head Managers
Office and LocalOffice at Field Office and Local Office-8
Office-8

Division at HO-39

Corporate Br-22 Principal office-42 Regional Office- 19

Authorized Dealer Branch-45

Overseas Branch-2
Kolkata and Shiliguri, India Inland Branch-1202
 3.9 Services of Sonali Bank Limited
Principal Activity of the Bank:
The principal activities of the bank are-
 To facilitate and handle all kinds of commercial banking services to its customers authorized by
Bangladesh Bank.
 To perform Government Treasury functions and also act as an agent of Bangladesh Bank.
 To export and import trade of Bangladesh with other countries under various agreements.
 International banking.
Subsidiary:
A subsidiary company named Sonali Exchange co. Inc. was incorporated on 4 April, 1994 under laws of the
state of New York, Department of State, licensed on 17 October, 1994 by the State of New York Banking
Department and commenced operation as an International Money Remitter from 12 December, 1994.
Associate: On 4 November, 1998 Sonali Bank notified the financial Service Authority of the UK of its
intention to voluntarily surrender the banking license for Sonali Bank UK branch with effect from June 30,
1990. Sonali Bank UK branch had extinguished all its retail deposits by 30 June, 1999 and is not permitted to
accept any further deposits from the date. Bur a representative was there till 7 December, 2001. A subsidiary
money remitting company under the name of Sonali Trade and Finance (UK) Limited has been incorporated
under the UK company act of 1985. The company has been allowed to start its function as a bank from 7
December, 2001 (the operation activities was started on 10 December, 2001) by the Financial Service
Authority of UK changing its name as Sonali Bank (U.K.) Ltd. 51% share capital of the newly renamed
company is held by the Peoples’ Republic of Bangladesh and remaining 49% by Sonali Bank.
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 accounts and contents of transactions. Every working day all the accounts are balanced
and reconciled to remove and discrepancy.
The overall activities of accounts section are as follows:
 Record all transactions in the cash book.
 Record all transactions in general and subsidiary ledger.
 Prepare daily fund function, weekly position, periodic statement of affairs etc.
  Prepare necessary statements 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 charges for different types of duties.
Ancillary Services :
Sonali Bank Limited offers multiple special services with its network of branches throughout the country in
addition to its normal banking operations.
Collection:
 Gas bills
 Electricity bills
 Telephone bills
 Water/sewerage bills
 Municipal holding tax
 Passport fees, visa fees and travel tax
 Customs & excise duties
 Source tax & VAT
 Jakat fund
 Hajj deposit
 Land development tax
Payment:
 Pension of employees of Government and other corporate bodies
 Bangladesh Bank employees’ pension
 Army pension
 British pension
 Students’ stipend/scholarship
 Govt. & Non-Govt. teachers’ salary
 Food procurement bill on behalf of the Govt.
Social Services:
 Old age allowances
 Widows, divorcees and destitute women allowances
  Freedom fighters’ allowances
 Rehabilitation allowances for acid survival women
 Maternal allowances for poor women
 Disability allowances
 Sale & Encashment/Purchase:
 Savings Certificates
 ICB Unit Certificates
 Prize Bonds
 Wage Earner’s Development Bonds
 US Dollar Premium & Investment Bond
 Lottery tickets of different Semi-Govt. and Autonomous Bodies
 Sanchaypatra
 Public Service Commission’s application form
 Judicial Service Commission’s application form
 Exchange of soiled/torn notes
Misc. Services:
 Bank a/c information of tax payee client according to demand of NBR
 Local Governance Support Project
 Enlist of Non-Government Insurance Company
3.10 Other Activities Memorandum of Understanding (MOU)
A memorandum of understanding has been signed by the bank with Bangladesh Bank on 30.06.2004. The
memorandum embodies some specific conditions to be fulfilled regarding monitoring and supervision of loans
and advances including recovery of classified loans.
Risk Management:
Like any other business, risks are also inherent in banking business. But the risks are complex and multi-
dimensional. Although remarkable progress has been made in the field of risk management in international
areas, no structural policy/development in this matter has yet been made in the banking sector.
In this perspective, Bangladesh Bank has identified 5 (five) core areas relating to banking operations and
issued necessary guidelines in 5 areas:
1. Credit risks
2. Asset and liability/balance sheet risks
3. Foreign exchange risks
 4. Money laundering risks and
5. Internal control and compliance risks.

3.11 Products of Sonali Bank Ltd

 Export credit (Pre-shipment & Post shipment)
 Facilitating supplier’s credit
 LCs (Letters of Credit)
 Guarantees in foreign currency - Bid bond - Performance guarantee - Advance payment guarantee
 Bill purchasing/discounting
 Remittance, collection, purchases and sales of foreign currency & traveler’s cheques
 NRAT (Non-Resident Account in Taka)
 NFCD A/C (Non-Resident Foreign currency Deposit)
 RFCD A/C (Resident Foreign Currency Deposit)
 Convertible and non-convertible taka account
 Forward contracts
 Correspondent banking relations
 Library Facilities

3.12 Types of Account

Accounts department is the most important functional area of this branch. The following types of accounts are
maintained in this bank:
1. Fixed deposits A/C
2. Short term deposits A/C
3. Deposit pension scheme (DPS) A/C
4. Sonali Bank special deposit & pension scheme A/C
5. Savings deposits A/C
6. Current deposits A/C Call deposits A/C and
7. Sundry deposit Accounts.
3.13 Remittance
The system of transmitting or sending money from one branch to another branch of the same bank or from one
bank to another bank within a country or outside the country is known as remittance. It is one of the important
functional areas of a bank. A bank can earn handsome fees as commission from the dealings of money
remittance. During my internship program I have gathered practical experience about how money is remitted
from one branch to another branch of a bank or from one bank to another bank.
Foreign Remittance:
The procedure to transfer money from one country to another country through bank or other govt. authorized
agencies is called foreign remittance. The Sonali Bank, MirpurShilpaElaka Branch, Dhaka does not provide
foreign remittance facility to its customer directly.

Types of Remittance:
Remittance can be of two types:
1. Inland Remittance
2. Foreign Remittance
When money is remitted within a country through proper banking channel, it is termed as inland remittance.
Sonali Bank, Rajshahi medical college hospital Branch deals a lot of inland remittance at every working day.
Modes of Inland Remittance:
Demand Draft (DD):
DD is the most widely used instrument of remitting fund. It is order to pay money drawn by one branch of a
bank upon another branch of same bank for a particular amount of money that is payable to order and demand.
Mail Transfer (MT):
MT is another widely used instrument of remitting fund from one branch of a bank to another branch of the
same bank. It is not used to remit fund from one bank to another. MT is nearly same as DD.
Telegraphic Transfer (TT):
TT is the fastest means of remitting fund between two branches of the same bank. Fund cannot be remitted
from one bank to another bank through TT.
3.14 Duties Performed in the General Banking
General banking is the one of the most important department of every banking transaction. During the
internship period I learn most this section. I did my work in the following section under general banking
Division.
Account opening.
Account closing.
Cheque Issue.
Local Remittance.
Clearing House Section.
Dispatch section.
3.15 Core values of SBL
To accomplish ultimate objectives and meet the target, every employee has to follow the elements of core
value proposition of SBL.
The value proposition of SBL contains 10 elements:
Ethics:
Every employee must have to maintain ethical practices of banking.
Accountability:
Every employee is responsible for his/her own jobs, and remain accountable to their respective Superior for the
completion of their tasks.
Objectivity:
Every employee must have objectives to complete.
Transparency:
Openness towards information for the stakeholders should be maintained.
Integrity:
Protection and safeguard of national and customer’s interest are vital elements for societal trust.
Team Work:
Open communication, discussion and interaction with coworkers would ensure common interest and efforts
towards achieving the greater goal.
Excellence:
There is no exception to providing excellent and effective services efficiently because of the large Customer
base of the bank.
Self-Reliance:
Each employee will have ownership attitude towards the Bank and self confidence in his work for the
betterment of the Bank.
Commitment:
Every employee is committed to work up to the expected level to ensure satisfaction of valued
Customers.
Innovation:
New and innovative products are the needs of the time for which continuous action oriented
Researches are being carried out.

3.16 Deposit Scheme

SL Name Of Scheme Duration Installment Rate of
Amount Interest
01. Sonali Deposit Scheme 5 years 500/- to 10,000/- 8.5%
(SDS) (Compound)
02. Education Deposit 10 years 500/- to 10,000/- 8.0%
Scheme (EDS) (Compound)
03. Medical Deposit 10 years 500/- to 10,000/- 8.0%
Scheme (MDS) (Compound)
04. Rural Deposit Scheme 7 years 100/- to 500/- & 9.0%
(RDS) 1,000/- (Simple)
 05. Marriage Scheme 10 years 100/- to 500/- & 8.5%
(MSS) 1,000/- to 10,000/- (Compound)
06. Monthly Earning Scheme 3 yrs & 50,000/- or times 9.95%
(MES) 5 yrs (3yrs)
10.8%(5yrs)
(Simple)
07. Double Benefit 6.6 yrs 50,000/- or times 11.25%
Scheme (DBS) (Compound)
08. School Banking -- Minimum 100/- 6.0%
Scheme (SBS)
09. Sonali Bank Daily --- Minimum 20,000/- 5.0%
Product (SBDP) (Compound)
10. Retired Savings Scheme 3 years Minimum 1 Lac 11.0%
(RSS) (Simple)
11. Sonali Bank Retired 3-5 yrs & Minimum 3 Lac 13%(3-
Savings Scheme 6-15 yrs 5yrs) 14%(6-
(SBRSS) 15yrs)
(Simple)

3.17 Clearimg House

Definition of Clearing House
Clearing means the process of transmitting, reconciling and/or confirming funds or includes the netting of
instructions and the establishment of final positions for settlement.
Clearing house means any entity that provides clearing or settlement services for a system, including
Bangladesh Bank.In Bangladesh, BB performs the role of the Clearing House and Sonali Bank performs this
on behalf of BB (where Bangladesh bank branch is not present).
3.18 Objectives for BACH
 Build up a modern payments infrastructure for Banks
  Ensures promptness,
 Minimize costs,
 Reduce clearing related frauds and
 Adopts efficient reconciliation process.
Components of BACH
 Bangladesh Automated Cheque Processing System (BACPS)
 Bangladesh Electronic Funds Transfer Network (BEFTN.
 Bangladesh Automated Cheque Processing System(BACPS)
Important Aspects of BACPS
 Electronic Cheque Clearing Systems with Cheque Imaging and Truncation System [CITS]
 New Clearing House Instruments design with MICR code line
 Image exchange instead of physical movement of instruments
 Returns: only the data, not the image
 Physical instruments will be stored at the presenting bank
 New Clearing Time Frame for prompt (day end) settlements
 Central Image Archive at Bangladesh Bank.
 Lending Principles Followed By Sonali Bank Limited
 As liquidity and profitability are conflicting considerations, Sonali Bank Limited as a bank, while
employing the funds pays due regard to both profitability and liquidity.
In order to secure a balance between liquidity, profitability and security, Sonali Bank Limited follows the
following principles of sound lending –
Liquidity:
It means that while lending, adequate care has to be taken so that the liquidity is not compromised. That’s why;
Sonali Bank Limited chooses such securities which posse’s sufficient liquidity.

Safety:
Sonali Bank Limited exercises the lending function only when it is safe and that the risk factor is adequately
mitigated and covered. Safety depends upon-
The security offered by the borrower; and the repaying capacity and willingness of the debtor to repay the loan
with interest.
Diversity:
In order to minimize risk, Sonali Bank Limited invests its funds in different types of securities of different
industries situated in different regions of the country.
Yield:
From the commercial point of view, Sonali Bank Limited considers sufficient yield or return while financing a
project.
Productive Purpose:
Sonali Bank Limited exercises its lending function only on productive purpose.
3.18 Cash Credit(CC)
Cash Credit (CC) is an arrangement by which a banker allows his customer to borrow money up to a certain
limit. CC is a favorite mode of borrowing by traders, industrialists etc. for meeting their working capital
requirements. It is operated like overdraft account. Depending on the needs of the business, the borrower can
draw on his credit account at different time and when he gets money can adjust the liability. Sonali Bank
Limited charges interest on the daily balance in the account. Depending on charging security there are two (02)
forms of cash credit-
3.19 Pledge
Pledge is the bailment of goods as security for payment of a debt or performance of a promise. Bailer in this
case of called the “Pawnor” and the bailee is called the “Pawnee”. In a contract of pledge, pawnor must deliver
the goods pledged to the Pawnee either actually or constructively. Transfer of possession in the judicial sense,
is essential in the valid pledge. In case of pledge goods the bank acquire the possession of the goods or a right
to hold goods until the repayment for credit with a special right to sell after due notice to the borrower in the
event of non-repayment.
After getting the cash credit arrangement, the banker will issue a cheque book for withdrawing cash from the
account. Whenever the CC account holder wants to withdraw cash from the account, the cash officer will
scrutinize the amount of cheque in order to make sure that the total drawings do not exceed the sanctioned
limit.
The charge documents required for opening a CC account are as follows-
 Demand Promissory Note (DP Note)
 Letter of Agreement
 Revival Letter
 Letter of Continuity
 Letter of Hypothecation/Pledge
 Letter of Guarantee
 Memorandum of Deposit of Title Deed (in case of CC hypothecation arrangement)
  Stock Report
 Letter of Disclaimer
Staff Loan
Sonali Bank Limited provides advances to the staffs for buying motorcycles. Bank provides this advance
facility under installment system. At the end of each month, when the staffs used to withdraw their salaries,
bank takes Tk.2,100/- from the salary of each of the concerned staff that takes this loan.
House Building Loan
Advances for construction of residential houses against real estate as primary securities as allowed by the
banks up to TK. 75 lacs per party (including cost of land). The rate of interest for all such loans is 5% per
annum.
Purchases and Discount Bills
Purchase and Discount of Bills is also a special form of advances. Sonali Bank Limited normally purchase
demand bills of exchange that are called “Drafts” accompanied by documents of title to goods such as Bill of
Lading, Railway of Truck receipt. The purchase of bills of exchange drawn at an issuance, i.e., for a certain
period maturing on a future date and not payable on demand or sight is termed as discounting a bill and the
charge recovered by the bank for this is called “Discount”.
Mid Term Loans
Sonali Bank Limited or other commercial banks, because of their capital structure, constitution and liquidity
consideration, are advancing for short term on principle. But modern banks have stated lending a safe
proportion of their demand and time liabilities for fairly long periods to House Building, Industrial,
Agricultural, Transport and many other sectors. Such loans are repayable by installments over a number of
years ranging from 2 to 12 (Agricultural Loans ranging from 6 to 15 months), as far as, nature and conduct are
concerned.

3.20 Modes of Charging Securities

Bank charges the following two types of security-
1. Primary Security
2. Collateral Security
The modes of charging securities usually followed by the branch are as follows-
 Pledge
 Hypothecation
 Lien
 Mortgage
Loan Classifications
Like other banks, all types of loan of Sonali Bank Limited fall into following four scales-
Unclassified:
Repayment is regular.
Substandard:
Repayment is stopped or irregular but has reasonable prospect of improvement.
Doubtful Debt:
Unlikely to be repaid but special collection efforts may result in partial recovery.
Bad/Loss:
Very little chance of recovery.
 Chapter-04
An Overview of E-Banking
4.1 Internet
The internet is the network of networks. It is a global system of interconnected computer networks that uses
the standard internet protocol suite (Transmission Control Protocol/Internet Protocol) or (TCP/IP). The internet
consists of billions of public, private, academic, business and government networks ranging from a local to a
global scope. These networks are linked by a broad range of electronic, wireless and optical networking
technologies. The internet has become a necessity in every field. The importance of internet has reached to a
new level as it carries inter-linked Hypertext documents of the World Wide Web and a wide range of
important information resources and sources. The internet not only has helped many professionals in their
respective fields by disseminating and sharing information but has also reshaped the traditional
communications of telephone, music, television etc. E-mail or electronic mail has helped business and
individuals to communicate in a much cheaper way. Instant messaging has made communications much easier
than e-mails. Users can exchange messages using their Personal Computers, laptops, PDA, Tabs, mobile
phones etc. in real time. The website technology has allowed users to read news, books or other information
which is accessible via a network. A web page is a document usually written in plain text. However a web
page is interspersed with formatting instructions of Hypertext Markup Language (HTML) or (XHTML). The
pages of a website can be accessed from a simple Uniform Resource Locator called the web address. The
website Technology has allowed blogging and web feeds. Social Networking has increased human interactions
more than ever before. The internet has also users who are located in distant places to talk via the VOIP or
Voice over Internet Protocol. Millions of users of the internet talk or chat with each other using the internet
technologies. The internet has helped doctors to carry out distant operation via teleconferencing or using
instructions on a robot through the internet to carry out an operation surgery on a patient on the other side of
the world. E-COMMERCE and online shopping has enabled the formations of new business .Any one can
trade using the website of an e-commerce website by sitting at home. Businesses of many types use the internet
to reach their customers most effectively. Both (B2B) Business to Business transactions and (B2C) Business –
To-Customer transactions are carried out using the internet. Financial Institutions also use the internet for
various purposes for updated news, selling financial products to their clients and to provide financial Services.
The increasing use of Internet by people has convinced banks to come up with the idea of E- Banking.
 4.2 E-banking
According to Encyclopedia,E-banking is a special type of banking where transferring funds are done through
electronic mediums by sending & receiving specific electronic signals rather than Using a check,exchanging
cash or any other paper documents. Transfer of funds happen Instantaneously whenever a user uses his/her
card to make payment of any purchase or while Withdrawing money from the Automated Teller Machine
(ATM), the funds gets transferred and Adjusted automatically and electronically. Traditional banks nowadays
offer various services to their customers such as accepting customer deposits,e-tender,e-tax payment etc.In
addition to common banks which have both physical and online presence,few e-banks out there only have
online presence.
These banks are online only banks, and exist in the internet.HTML (Hyper Text Markup Language) is used to
provide online banking services to customers user’s access client accounts with bank identifiers through
computer systems and all confidential client information is kept stored securely in the central database of the
bank.
E-banking is also used by the financial Institutions to sell financial products to their customers,dealing with
stock markets, or to provide financial services.E-banking is used to transfer funds for both B2B (business to
business) and B2C (Business to consumers) purposes.
4.3 The History of E- Banking
The idea of E- Banking came with the rise of users of the internet and with the development of the World Wide
Web. The programmers have been working on data bases of banking transactions long ago and an idea of E-
Banking transactions had evolved at that time in the early 1980’s. New technologies and the advancement of
computer devices created an opportunity to start a new trend of online shopping. Online Banking Facility that
was introduced is believed to have been derived from a system which is known as “Prestel”. The E- Banking
facility introduced by the NBS was not very impressive and had drawbacks. The main drawback was it
restricted the number of transactions and functions that account holders could execute. In the year 1994 the
first E- Banking service was introduced in the United States. A financial Institution named Stanford Federal
Credit Union had developed this service of E- Banking. There are many negative sides of E- Banking .These
include a hacking , phishing , pharming, spoofing , sniffing and other unethical acts which makes E- Banking
facilities risky for both the users and the banks . Although E- Banking has negative sides but we should also
consider the positive sides. E- Banking has created a revolution and it has a significant role to play in
enhancing the banking sectorShopping or shopping from the website using the internet promoted the use of
credit cards. To facilitate online shopping date ware housing or date storage facilities were used. During the
development of the Automatic Teller Machines or ATMs the development of the databases of banking
transactions were also used. In the 1980’s the financial organizations and banking institutions mainly in
Europe and the United States of America carried out researches and programming experiments on “Home
Banking”.
 4.4 Types of E-Banking
Informational
Informational e-banking involves fundamental stage banking and only used by bankers for Marketing and
promotional purpose of the bank. This method is used to let the target audiences Know about new offerings of
the bank, but does not allow communication between bank and its’Customers.
This part of e-banking is normally maintained by the bank itself or it can be outsourced from third party.
Communicative
This channel of e-banking is widely used in the banks, because it allows interaction between banksand its’
clients. Although the interaction level is limited, for example clients can make an inquiry about his/her account
balance, account status, applies to change basic information’s etc. This stage is popular because almost all the
banks have gone through computerization and now bank Employees can verify clients, their signs, and all
other customer credentials from the central server. The whole banking process has gotten stronger and secured
by communicative e-banking.
Transactional
The most popular form of e-banking is transactional e-banking. This method allows users to Transfer funds
instantaneously, make deposits, withdraw at any moment. This gives the users all
The benefits of manual banking and a control over their own bank account.
Risk management and E-banking
In the age of internet information spreads super-fast and that affects financial markets all over the World. If
any of the market faces a crash, then it starts a chain reaction and spreads all over the World. So, risk
management gets the highest priority while doing any business. According to the Bangladesh Bank guidelines
and BASEL-III, the following risks should be carefully monitored by all the banks under the protection of
Bangladesh Bank and implement proper credit risk Management actions to keep unforeseen loss minimized.
Credit risk
Anyone with a bank account can apply for loans through e-banking. Although the online banking System is
strong and secured, there are ways to falsify client information and it is possible to apply for loan with a stolen
identity or under a false name. Also, credit worthiness of a client cannot be completely verified through online
form submission and emails. Similarly, the valuation of Collateral is nearly impossible through online
mediums because frauds could submit false paper Works to get loan from the bank.
Interest rate risk
Interest rate risk is one of the most problematic risks to handle for any bank. Globalization and
Internet has connected countries together and now the economy of one country gets affected by
Others. Clients now have access to information’s about which bank is providing how much interest on deposits
and the market is very competitive. Interest rate risk could bring down an economy to its knees, for example, if
the economy is slow, foreign investors are going to lose interest and Start pulling their investments out of the
system and if that happens in an uncontrolled manner, the Whole economy will get destroyed along with the
banks.
Liquidity risk
E-banking provides easy access to cash to most of the clients, whenever they need. Because of
This, if any other bank or financial institution offers more attractive rates and products, then the
Existing customers might demand withdraw all together at the same time which going to put the
Bank in a higher liquidity risk position.
Foreign exchange risk

Foreign exchange risk upsurges when bank owns assets or liabilities in foreign currency. The rate Of exchange
might go up or down any time and that puts the earnings of the bank at risk. One of The reasons of bank
holding foreign currencies is the purchase and sale of foreign currencies to Allow customers (or the bank itself)
to take positions in foreign transactions and financial Investments. Online banking has reduced the probability
of foreign exchange risk by letting the Banks act fast on sudden exchange rate changes.
Transactions risk
This risk to earnings and capital that arises from fraud, error, and the inability to deliver services or products,
or to maintain a competitive position or to manage information.Transaction risk that may exist with E-
Banking products if these are not properly planned not properly implemented and not properly monitored.
Banks which provide E- Banking should always try to meet their customers’ expectations and satisfy them by
ensuring them that they have the right product mix and also have the capability to deliver accurate, timely and
reliable services.
Compliance Risk
The risks to earnings or capital that arises from the violations of, Nonconformance with the laws, rules,
regulations, the prescribed practices ethical standards of a country.This risk can affect the reputation of a bank,
business opportunities and positioning in the minds of its customers. Banks should be careful in understanding
and interpreting the laws of different countries. Banks should also be careful in the privacy of customer and
taking customer consent wherever necessary.
Reputation Risk
This risks that has a current and prospective impact on earnings and capital that arises from a negative public
opinion. Reputational risk can affect the bank’s ability to create new relationships with potential customers and
to retain existing ones. Banks which have E- Banking facilities should be concerned about the reputation risk
as it can create a financial loss for the bank diminish its customer base etc. The services of E- Banking should
not have a limited availability, poor response rate etc. Proper monitoring of the websites is required so that 19
Hyperlinks of the website do not like to implicit endorsements of other websites. These factors should be put
into considerations as customers are likely to switch to other companies if they find flaws in the E- Banking
facilities of a particular bank.
Strategic Risk
This is risk of earnings or capital that arises from adequate business decisions and the improper
implementation of business decisions. Many bank managers and senior officers do not understand how to
implement the strategic and technical aspects of E- Banking. A proper cost benefit analysis is required for this
purpose. The organization should have the proper structure, resources and expertise to carry out E- Banking.
Information Security Risk
One of the major risks to earnings and capital is information security risk. This arises when the security
process is not strong enough. This can expose the institution to malicious hacker or insider attacks, viruses and
other attacks. Data theft, fraud are other unethical practices.
 4.5 Products and Services of E- Banking
The products and services of E- Banking ranges from wholesale to retail products for corporate and individual
customers.The different types of products and services are designed to satisfy different groups of customers.
 Wholesale products and Services include:
 Wire Transfer
 Automated Clearinghouse Transaction
 Bill Presentation and payment
 Cash Management
 Retail Products and Services Include:
 Fund Transfer
 Downloading Transaction Information Facility
 Investment
 Presentation of Bill and Payment
 Loan Application from the web
 Balance Inquiry
Training:
Sonali Bank staff college, Dhaka along with three institutes at Chittagong, Rajshahi, Khulna and one training
center at Bogra have been conducting training programs covering total banking activities in order to impart
training to all categories of officers and staff of sonali Bank.
 Chapter-05
E- Banking in Bangladesh
5.1 E- Banking
E- Banking is transforming the financial services industry through various impossible innovations. The
quantity of cross-border trading and other financial activities is increasing geometrically make possible by
technology. It has been made possible by technology, particularly information technology to generate, collect
and process information about bank operation and bank customers efficiently and effectively. It provides the
ability to create more effective systems of controls in individual institutions and in the market themselves.
Compared to the paper based operation, Electronic Banking Systems, in its most proficient form, offer instant
verification and transfer and reduces the flow of costly paper in the record keeping process.
Application of technology in banking offer opportunity for reduction of both paper and people. Banks have
developed EBS for three main reasons (Horseman, Michael J. 1979)
E- Banking allow banks to expand their markets for traditional deposit taking and credit extension activities,
and to offer new products and services or strengthen their competitive position in offering existing payment
services. In addition, electronic banking could reduce operating costs for banks. More broadly, the continued
development of electronic banking and electronic money may contribute to improving the efficiency of the
banking and payment system and to reducing the cost of retail transactions nationally and internationally.
Although many financial instrument and systems are now considered as “Electronic Banking” came into the
terminology of the financial world in the late 1980s, with the possibility of emergence of true electronic
money. All sorts of back-office information management technology and financial services using electronic
devices can be included into the term “Electronic Banking”. The development in information technology has
contributed positively to economic growth through several channels. ICT has led to a productivity growth
through the impact on activity processes. Banks have been increasing their own size and financial strength and
expanding the scope of their products lines to meet the growing demand of on- line real-time financial
services.
5.2 Structure of Electronic Banking
E-banking is a general term referring to various computer-based technologies for delivering banking services.
Electronic banking systems can be divided into two categories by the functional characteristics, viz. back-
office electronic banking, and electronic financial instruments or front-office electronic services. Back-office
electronic banking provides information management services, and quick fund transfer facilities both for
traditional banking and financial instruments and electronic financial instruments. Science inception of primary
forms of electronic banking it has been passed through a comprehensive evolution process. Electronic banking
services can be grouped into three generations of evolution:
 To protect and increase market share
 To reduce operating cost by substituting physical capital and technology for labor

5.3 Debit & Credit cards

All commercial banks in Bangladesh provides their own debit card and credit card facilities
To their customers.Debit card holders can withdraw or pay with their card anytime through
Registered ATM booths or stores. Credit card allows users to get emergency funds from
Bank whenever needed in exchange of service charges.
It is a payment card issued to users (Cardholders) as a method of payment. It allows the cardholder to pay for
goods and Services based on the holder's promise to pay for them. The issuer of the card creates a Revolving
account and grants a line of credit to the cardholder, from which the cardholder Can borrow money for
payment to a merchant or as a cash advance.
5.4 Banking through mobile apps
Nowadays in Bangladesh, mobile banking is getting very popular because its’ easy, always Accessible, always
ready to go and convenient.
BRAC Bank has bKash
Bangladesh Post Office has Nagad
DBBL has Rocket,
City bank has City Touch
Sonali Bank E-Sheba etc.
Home Banking
Home banking frees customers of visiting branches and most transactions will be automated to enable them to
check their account activities transfer fund and to open L/C sitting in their own desk with the he lp of a PC and
a telephone. For example: HSBC is giving Hexagon facilities to their individual and corporate customer.
Tele Banking
Tele-Banking permit customers to get access into their respective banking information 24 hours a day.
Subscribers can update themselves by making a phone call. They can transfer any amount of deposit to other
accounts irrespective of location either from home or office.
SWIFT
SWIFT is a bank owned non-profit co-operative based in Belgium servicing the financial community
worldwide. It ensures secure messaging having a global reach of 6,495 Banks and Financial Institutions in 178
countries, 24 hours a day. SWIFT global network carries an average 4 million message daily and estimated
average value of payment messages is USD 2 trillion.
SWIFT is a highly secured messaging network enables Banks to send and receive Fund Transfer, L/C related
and other free format messages to and from any banks active in the network. Having SWIFT facility, Bank will
be able to serve its customers more profitable by providing L/C, Payment and other messages efficiently and
with utmost security. Especially it will be of great help for our clients dealing with Imports, Exports and
Remittances etc.
Easy Pay Machine
It is a mechanical device which can accepted utilities bill like land phone bills, cell phone bills, Gas bills,
WASA-DESA bills etc. The day after tomorrow bank will report to the particular authority to give
acknowledgement on behalf of their customer.
ATM
Automated Teller Machine, also known as cash machine is a kind of telecommunication Device that establish a
secure connection between user and the bank, to perform financial Transactions,particularly cash
withdrawal,without the presence of a bank cashier, clerk or Bank teller.
Other notable services
 Make deposits, loan payments and card management.
 Fund transfer to any bank and detailed account statements.
 Internet shopping and digital payment through e-commerce gateway.
 Instant bill payment such as tuition fees, mobile phone bills, insurance premium,
 Club payments, internet bill payments etc.
 Instant top-up to mobile phones.
 Utility Bill Payments.
 Loan account information and management.
 Beneficiary Management.
 Electronically management of all client accounts.
5.5 Features of electronic banking in Bangladesh
The common Features of electronic banking in Bangladesh are as follows: -
Electronic banking idea developed in Bangladesh since 1992 through several multinational banks. But most of
the local and foreign banks are maintained electronic banking in their all branches. Here the researcher fined
some common features of electronic banking in Bangladesh.
1. 24- hours cash deposit & withdrawal facility
2. Quick cash withdrawal without having queue in any moment
3. Account activities enquiry
4. Statement request through ATM/Debit/Credit Card
5. Transfer own funds to other account number in same bank
6. Present Balance enquiry
7. More than16- hours shopping facilities
8. Deposit or Mail cash or cheque(s) (Cross cheque) through mechanical device.

Chapter-06
E-Banking Services of Sonali Bank Limited

6.1 General Banking services

All the general banking activities performed by Sonali Bank Limited are now done electronically.
Total 1226 inland branches are now under full automation and computerized.
The main four general banking activities of Sonali Bank are given in the following section;
1. Acount Opening
2. Clearing
3. Remittance and
4. Cash
All four of general banking activities are now gets completed through online servers of the bank And the
record keeping of all the vouchers and checks are done both physically and electronically.
For the account opening section, walk in customers fills up an account opening form containing
All the personal details of the client, such as his/her national ID card information, photographs,
Nominee information’s, source of income and purpose of the account, signature verification, and
Then an employee inputs all the information on the bank server and keeps the digital record and
The bank identifiers of each client account. For the remittance section, banks own in-house
Software "Remittance Management System" (RMS+), having, among others, the feature of paying
Foreign remittance instantly over the counter is being implemented at all branches. This web basedSoftware
provides digital services to the expatriates through its unique advantage of sendingConfirmation message to
the mobile phone of the remitter/beneficiary. Also, for the clearing Section Sonali Bank uses the automated
clearing house of Bangladesh. Cash is the only general Banking service section where digitalization has
brought changes the least. Addition of automatic Money counting machines in the cash section has made the
cash disbursement easier and more Controlled.
6.2 SBL ATM
Sonali Bank Limited is a member of Q-Cash Consortium, National Payment Switch Bangladeshb(NPSB) and
VISA.Customers can enjoy round the clock cash withdrawal facility from 75 own ATM(s) and around 6500+
shared ATM booths across the country.Sonali Bank recently launched, Credit Card.
Yearly charge for debit card is Taka 345.00 (Including VAT), replacement card issue
Cost Taka 200.00 if the original card is lost.
6.3 Online and SMS Banking
According to Sonali Bank Website and the last update January 16, 2021;
❖ SMS Banking now in automation network within 1216 branches at home.
❖ Total number of CBS running branch is 1216 and all CBS branches support SMS banking.
❖ RTGS enabled branch no is 1214.
❖At present 1226 branches of Sonali Bank are under in the Online ABB network.
The bank is seriously working on connecting all branches in the Real-time Online Banking
Network gradually. Branches having ABB facility are also providing SMS banking services.

6.4 Features of SBL Q-Cash ATM Network

Sonali Bank Limited has introduced Proprietary Debit & Credit cards.
Card holder can easily pay utility bills like- Water, Telephone, Gas etc.
It is easy to remit funds among the participating branches of the Bank.
24 hours Transactions is available.
It is a risk less Cash carrying facility.
Cashless purchase can be made from specific Point of Sales (POS).
Only designed Branches of Bangladesh deal Q-Cash cards.
Branches of District and Upazilla level will introduce Sonali Bank Q-Cash card within shortest possible
 time.
6.5 Debit/Credit Card services
Sonali Debit Card Facilities:
Sonali Bank Limited is one of the member banks of Q-Cash Consortium. Card holder of Sonali Bank Limited
can use ATMs of consortium member banks, Dutch-Bangla bank and BRAC bank limited. Member Banks of
Q-Cash Consortium:

1. Sonali Bank Limited 12. Eastern Bank Limited

2. Basic Bank Limited 13. Jamuna Bank Limited
3. IFIC Bank Limited 14. Markentile Bank Limited
4. Janata Bank Limited 15. NCC Bank Limited
5. National Bank Limited 16. Shahjalal Islamic Bank Limited
6. Pubali Bank Limited 17. The City Bank Limited
7. Trust Bank Limited 18. Standard Bank Limited
8. ICB Islamic Bank Limited 19. Uttara Bank Limited
9. Social Islamic Bank Limited 20. Bank Asia Limited
10. Bangladesh Commerce Bank Limited 21. Mutual Trust Bank Limited
11. State Bank of India 22. Trust Bank Limited

Sonali Credit Card Facilities:

Sonali Bank Limited has introduced proprietary credit card. At present officers of the bank are entitled to enjoy
credit card facility. Other than this, officer of Government, Semi-Government, Autonomous organizations,
Teachers and Officers of the Government Universities are also \ entitled for Sonali Credit card whose salary is
disbursed from issuing branches of Sonali Bank Limited.

Credit Limit
General Manager and Above Tk. 5,00,000
DeputyGeneral Manager 4,50,000

Assistant General Manager Tk. 4,00,000

Senior Prinpal Officer Tk. 3,00,000

Principal Officer Tk. 2,00,000
Senior Officer & Officer Tk. 1,50,000
 Chapter-07
Foreign Exchange of Sonali Bank Limited

7.1 Foreign Exchange

Foreign Exchange refers to the process by which the currency of one country is converted into the currency of
another country; Foreign Exchange means a method by which rights to wealth in a country’s currency are
converted into rights to wealth in another country’s currency. In banks when we talk foreign exchange, we
refer to the general mechanism by which banks convert currency of one country into that of another’s. Foreign
trade gives rise to foreign exchange. Modern Bank facilitates trade and commerce by rendering valuable
service to the business community. Apart from providing appropriate mechanism for making payment arising
out of trade transportation the banks gear the machinery of commerce, especially in case of international
commerce, by acting as a useful link between the buyer and seller, who are often too far away from and too
unfamiliar with each other.
Foreign Exchange of Sonali Bank department plays a vital role through providing different services for the
customer. Issuing L/C is one of the important services provided by SBL.
Some national and international laws regulate functions of this department. Among this Foreign Exchange act,
1947 is for dealing in foreign exchange business. Import and Export control act, 1950 is for documentary
credits is also an important law of settlement of terms and condition between exporter and importer in
international trade. Government export and import policy is another important factor for import and export
operation for banks.
7.2 Functions of Foreign Exchange
The SBL works as a media for the system of foreign exchange policy. For this reason, the employee who is
related of the bank to foreign exchange, specially that system should have knowledge of these functions:
 Rate of Exchange
 The rate of exchange forward and spot rate
 Method of quoting exchange rate
 Premium and Discount
 Risk of exchange rate
 Exchange control
 Convertibility
 Exchange position
 Intervention money
 Foreign exchange transaction
 Foreign exchange trading

7.3 More types of commercial letter of credit at Sonali bank

Letter of Credit is classified into various types according to the method of settlement employed. All credits
must clearly indicate in major categories.
Revocable letter of credit.
Irrevocable letter of credit
Confirmed and unconfirmed Credits
Restricted Letter of Credits.
Sight or payment credit.
Deferred payment credit.
Acceptance credit.
Negotiation credit.
Red close credit.
 Green Clause letter of credit
Revolving credit.
Specific or fixed or Non-revolving credit
Stand by or guarantee credit.
Transferable credit and Non-transferable credit
Back to back credit
Omnibus Credits
Transit or Reimbursement credit
Credit “With” or “Without Recourse”
7.4 Procedures of opening the letter of credit (LC)
The importer after receiving the preformed invoice from the exporter, by applying for the issue of a
documentary credit, the importer request his bank to make a promise of payment to the supplier. Obviously,
the bank will only agree to this request if it can rely on reimbursement by the applicant. As a rule accepted as
the sole security for the credit particularly if they are not the short of commodity that can be traded on an
organized market, such an arrangement would involve the bank in excessive risk outside its specialist field.
The applicant must therefore have adequate funds in the bank account or a credit line sufficient to cover the
required amount. Banks deal in documents and not in goods. Once the bank has issued the credits its obligation
to pay is conditional on the presentation of the stipulated documents with in the prescribed time limit. The
applicant cannot prevent a bank from honoring the documents on the grounds that the beneficiary has not
delivered goods on redder reissues as contracted
 Chapter-08
Findings

Findings are based on the following questions: these are categorized as-
A. Services used by customer
1. Why do you use E- banking?
2. Which E-banking service is most user friendly to you?
3. How often you use E-Banking per week?
B. Development needed for future
1. Mobile application should be developed to provide online banking
2. Each online branch should keep computers in branch office for those who do not use android mobile
3. E-banking customer care service should be initiated for instant help
C. Factors of consideration
I. Better rates & low service charges:
II. Security of transaction:
III. Quick service (transaction completed in seconds instead of minutes):
IV. Variety of features:
V. Convenience:
VI. User friendliness:
Findings from the survey is given below:
From the perspective of the customers, it is clear that majority of the clients are fine with the quality of
services they are getting.
 Rating for customer services

0%
21%
30%

13% 36%

VerySatisfiedSatisfiedNeutralDissatisfiedVerydissatisfied

Among 63 respondents, 36% of the sample agreed that they are satisfied, 21% very satisfied with the customer
service of SBL. 13% of the sample remained neutral, and 30% opted for dissatisfied.
The next chart shows how much the existing customers think about the effectiveness of the interactions they
have with the bank officials. It shows that more than 85% of the population has positive attitude towards
effectiveness of the usual interactions they do with bank employees. In the last three months I have
encountered many type of critical client handling situation. For example, a big portion of the customers
coming in the bank are senior citizens. They come to collect their retirement pension or old age allowances,
and sometime it gets hard to make them understand fundamental bank rules and regulations. Every employee is
trained to handle such situations and give best effort to make interaction with customers as good as possible.
 INTERACTION WITH EMPLOYEES

Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

0%
14% 19%

67%

One of the major findings is, people are unhappy about the average time it takes to get any banking services.
The major complaint related to the quality of customer service is that to get a simple work done, each customer
need to spend average more than 15 minutes because in the existing system setup of the bank, only one
employee in the debit-credit section does the verification of clients and their checks, make data entry for cash
withdrawal/ deposit amount to the specific account, keep records of the daily SC and LSC, clearing checks,
data entry for account opening etc. Although it takes more than 15 minutes per person after the
computerization of the branch, it took even more time when the whole banking process was done manually.
Also, 92% of the respondents believe in the technological excellence of SBL.

AVERAGE TIME REQUIRED

Less than 5 minutes 5 to 15 mintures more than 15 minutes

0%
14%

86%
 E-BANKING USERS
NoSMSDebitcardCreditcard

2%
22%
24%

52%

Almost ¾ portion of total users have some sort of e-banking services linked to their accounts.
Particularly, 52% of the total respondents have SMS alert service activated, 24% have their own debit
card against their account, and mere 2% users have credit card authorized with their bank account.

Customer Satisfaction level on the basis of e-banking

Excellent Good FairPoorVerypoor

45 39
40 37
35
31
30
25 26
20
15 16 17
10 12 12 13
11
5 8 8 9
6 7
0
0 00 0 0
Overall banking experience
ATMServicesRelationshipwithbankEase of doingbanking 9
26
Excellent 6 16 7 11
Good Fair Poor 8 39 31 17
Very poor 12 8 12 0
37 0 13
0 0 0

Customers with debit card complained about not getting enough funds in the Sonali Bank’s personal
ATM booths, 37 respondents among 63 has agreed that the quality of ATM booth service compared
to other banks is poor. Except this one, SBL is doing well maintaining their customer satisfaction
level up by keeping good relationship with customers, making the banking easy and simple for
people. By doing these, SBL is providing a good overall banking experience to its’ clients. 100% of
the total population believe that Sonali Bank Limited will be able to satisfy their future needs.
The last question of the questionnaire is an open ended question and from analysis, it is found that
people demand faster service and gentle behavior from the employees.
 Chapter-09
Problems

9.1 Problems found in SBL

The software SBL uses like RMS+ runs on windows XP which is an outdated operating System declared by
Microsoft. That is a great online security concern, hackers are smarter Nowadays and managed to steal
almost$100M from Bangladesh Bank in recent year.
Not adequate technological equipment available.
Poor job satisfaction due to lower pay scale compared to private banks.
Using local Internet Service Provider (ISP) to operate online banking.
It is hard to introduce any change in an organization this big.
Record keeping procedures are flawed.
Older register books and files are not kept withCare and safety
All the services are not distributed evenly among employees.
Senior employees tend to Put more work pressure on junior employees.
This creates imbalance in the work place And ultimately increases the average customer serving time.
The central server gets slow at peak hour, hence the efficiency of work becomes poor.
Lack of employee satisfaction and motivation was observed because of working without Breaks,
inadequate space to say prayers, eat lunch and relaxation.
9.2 Problems relating to Branch Computerization
 Server fails for long time
 New software named CBS (core Banking Software) is now running for few months. So if
someone needs the statement or any data related to transaction more than 4 moths then the
previous software named Baxibank is needed.
 Electronic token system is not in used.
 Computers are not up to date.
9.3 Problems relating to Q cash network
 This service is not available
 Only designed braches deal with Q cash cards.
 Most of Customers of SBL don’t know about this service because of poor publicity.
 Chapter-10
Recommendation & Conclusion
To overcome the problem I would like to suggest the following things:
Bank should establish more ATM booths
ATM booths should have enough money
Bangla interface should be introduced as soon as possible.
Branch office should not be connected with local broadband service. In this case I suggest that
the branches should use BTCL internet service.
SMS banking needs more development. Revival of this service is the demand of time.
Head office should think about to develop smartphone mobile application for providing better
services.
E-banking services should try to mobilize more deposit schemes through better marketing and
innovative measures.
E-banking system should be more flexible.
All the statement relating to transaction should provide in the CBS software.
E banking should develop their communication among branches.
E-banking service should be according to the customer expectation and satisfaction.
E-banking service should be resolve the entire problems very quickly that the customer face in
online transaction.
Marketing and sales force should be developed to attract customer.
Customer's convenience:
For customer’s convenience, Sonali Bank Limited should provide more personnel to deliver faster
services to their honorable customer. Relationship and database banking should be initiated
immediately.
Ensuring communication:
Ensure proper communication system and maintenance of files & machinery’s like phone, computer,
fax, and photocopier.
Profitable Fund Mobilization:
It is observed that a huge amount of fund remains without being invested or poorly invested, which
hampers the profitability of the bank seriously. So fund mobilization should be done carefully and
profitably.
Loan & Advance:
In order to get competitive advantage & to deliver quality service, top management should try to
modify the services at the loans and advance sector.
Computerization:
To ensure error free fast task, bank should be fully computerized. On line banking and electronic
services are the prime demand of the time. The management functions (from planning to control) are
not clearly present in their various activities. Only the cash section of the branch is computerized. But
for reducing bankruptcy Sonali Bank should develop immediately Credit & Project Finance
Information System through computer.
Credit risk management:
Sonali Bank is the first leading bank in Bangladesh. Its major operations are profit, growth,
development and welfare oriented. Management system of this bank is fully democratic. It always
maintains the rules declared by Bangladesh Bank. Sonali Bank Staff College provides training
facilities to its medium & junior level officers of the bank and also provides executive development &
internship programs. This is my observation that the lecture of credit risk management and negative
barriers of sanctioning finance should be discussed widely than before. Because of the management
of Sonali Bank has been facing the high involvement of lending risk & procurement of project
finance with Bank’s growth, profit & future.
Officers who are working on Credit risk management & Project finance procedure, they should give
attention on timing of sanctioning finance. Because of demand of any kinds of products is flexible. So
if other thing is remaining constant, sanctioning rocedure should not be delayed.
Product differentiation and Marketing:
Keeping the pace with the time, many new products should be developed on the basis of customers’
need and wants.
Networking:
Sonali Bank has network manually not computerized. Sonali Bank should networking system by
which all branches of Sonali bank can be connected easily as a largest commercial bank in
Bangladesh. By using computerized networking system Sonali bank could disbursement of services
on ATM, Debit card, Master card, Q-Cash facilities.
Decoration of offices:
Office should be fully decorated to attract people to come into it.
Policy:
Policy should be distinctive and dynamic which has more acceptability to the borrowers. Policy
should be made at the consideration of regional, financial, continental, demographical, economical,
psycho graphical.
Political power:
Political power should not be considered to maintain credit management module and project finance
procedure. In our Bangladesh most of the cases procedure is to weak for financing so, ultimate result
is being bankrupted.
Others:
CBA’s interference in customer service as well as in administration should be removed.
Sonali Bank Limited needs to reserve internal banking policy.
At last Sonali Bank should develop the proper environment so that borrowers can bargain or negotiate
about loan and finance. Because of Sonali Bank must have to think about borrower’s needs, wants
and demands and beside his profitability.

Conclusion
Sonali Bank Limited is the largest commercial bank as well as the largest employer in both the public
and private sector in Bangladesh. The bank is playing an important role in the socio-economic
development through the development of industrial sector. The bank provides all the conventional
banking service as well as some specialized financing activities to the economy.
In fine we can say the profitability of the bank was comparatively satisfactory because the fluctuation
is not highly significant. Again some new branches were opened during the study period. So as new
bank its performance is quite satisfactory. Finally we can say if the bank controls its expenses and
takes proper steps to overcome its little limitation, it will become a first rows bank of Bangladesh.
Technology is moving fast. Moving alongside that, expectation and demand of people is continuously
changing. To meet the expected customer satisfaction level, Sonali Bank Limited
Should take small steps towards making positive change in the organization. More attention should
Be given towards making the banking process as simple as possible to acquire and make a loyal
Customer base. Current competition in the banking sector is huge. Small and new private Commercial
banks are operating in the market with modern business plan and offering variety of
Financial products and services. They have solid and strong marketing team which helps themReach
customers effectively.
The study clearly indicates that those who use E-banking features of Sonali Bank are not very
satisfied with the service. If the bank plans to expand the customer base of E-banking they should
focus more on speed, user friendliness, and safety and convenience, quick response factors of E-
banking. Proper web-hosting is required for this reason. Customers should also be made aware of
unethical practices like sniffing, spoofing, phishing, pharming and other malicious software which
can be used by hackers. Attention should also be given in the encryption of the information which is
exchanged between the users and the bank. So the study is very beneficial for both Sonali bank and
Bangladesh to get insights about E-banking relations with customer satisfaction to compete in such
harsh environment, SBL needs to modernize its ‘Marketing department, design effective training
programs for the employees and make faster Improvements in e-banking sector. Attention should be
given into strong encryption of user data, updated software, introducing smartphone apps to connect
with more customers and lastly, Motivate employees to their best for the bank to stay on top of the
banking sector in Bangladesh.
So in conclusion it can be said that every organization has its positive as well as negatives and in case
of Sonali bank Limited existence of the later one is less than the earlier one and as the management is
determine to reach the pick of success it seems that in near future the negatives will be eliminated.
The productivity of the employees can be increased hugely through proper training, motivation,
logistic support like computerization, better working environment, and government intervention in the
policy formation as well as desk work.
Besides, the bank must take every necessary action to recover non-performing or classified loans to
increase its basic profitability. It should also reconcile the government transaction quickly. It should
think over to earn at least minimum commission and charges on the charge-free services.
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 Appendix
Questionnaire:
1. Do you have bank account in SBL?
O Yes
O No
2. What gender do you identify as?
O Male
O Female
O Other
3. How long have you been with SBL?
O Less than 1 year
O 1 to 3 years
O More than 3 years
4. Do you have accounts in other banks? If yes, please mention below
O No
O Yes
5. How would you rate the following services at SBL?
Rating Very
Dissatisfied
6. What is the average waiting time in the bank?
O Less than 5 minutes
O 5 to 15 minutes
O More than 15 minutes
7. Do you believe in the technological excellence of SBL?
O Yes
O No
8. Do you have SMS banking or Debit/Credit card attached with your account?
O No
O Yes

9. How would you rate the ATM services provided by SBL compared to other banks?
O Excellent
O Good
O Fair
O Poor
O Very poor
10. How would you rate the overall quality of your relationship with the bank?
O Excellent
O Good
O Fair
O Poor
O Very poor
11. How would you rate the ease of doing regular banking with SBL?
O Very easy
O Fair
O Moderate
O Complicated
O Very complicated
12. Do you believe that SBL can satisfy your future needs?
O Yes
O No
13. How would you rate the overall banking experience with SBL?
O Excellent
O Good
O Fair
O Poor
O Very poor
14. Please mention at-least one aspect of customer service you wish SBL would improve?