Intern Report of Md. Abu Hamza Nomaan

Internship Report on
Financing & Risk Management of
Sonali Bank Limited at DEPZ Branch
© Daffodil International University i

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Internship Report on
Financing & Risk Management of Sonali
Bank Limited
Submitted To
Professor Dr. Mohammed Masum Iqbal
Dean, Department of Business
Business Administration Faculty of
Business & Entrepreneurship
Daffodil International University
Submitted By
Md. Abu Hamza Nomaan
ID: 173-11-510
Program: BBA
Major in Marketing
Department of Business Administration

Faculty of Business & Entrepreneurship
Daffodil International University
Date of Submission:
©Daffodil International University

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Letter of Transmittal
9 March 2022

Dean, Department of Business

Subject: Submission of internship report on ‘‘Financing & Risk Management of
Sonali Bank Limited.
Dear Sir,
It is my pleasure that I have completed my internship report and am ready to submit my report
hereby ‘‘Financing & Risk Management of Sonali Bank Limited’’ on EPZ Branch,
Savar, Dhaka. According to your instruction I have worked & analyzed the finance
& Risk department of Sonali Bank Limited. I have really enjoyed the working environment of
the bank. I have tried my best to present everything that I have experienced there while
preparing my report under your supervision and guidance.
I have thoroughly enjoyed the overall work during my internship period which is carrying vast
descriptions of practical knowledge. This report along with all kinds of necessary information
regarding the study is being submitted to you for your evaluation. I sincerely hope that you will
appreciate my effort.
Sincerely yours,
........................
ID: 173-11-510
Program: BBA
Major in
Marketing


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Declaration
I declare that the internship report on ‘‘Financing & Risk Management of Sonali Bank
Limited’’ on EPZ Branch, Savar, Dhaka. Embodies the result of my own research
works, pursued under the supervision of Professor Dr. Mohammed Masum Iqbal, Professor,
Daffodil International University.
I further confirm that the work reported in this report is original and no part or whole of this
report has been submitted in any form, to any other university or institution for any degree or
for any other purpose.
.................

ID: 173-11-510
BBA
Major in
Marketing


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Certificate of Approval
I am pleased to certify that the Internship report on ‘‘Financing & Risk Management of
Sonali Bank Limited’’ on EPZ Branch, Savar, Dhaka. Conducted by Md. Abu Hamza
Nomaan, ID: 173-11-510 of the Department of Business Administration has been approved
for presentation and defense. Under my supervision Mirza Hasanul Rahman (Senior
Officer) worked with SONALI Bank limited as an intern.
Mirza Hasanul Rahman bears a strong moral character and a very pleasing personality. It
has indeed been a great pleasure working with him. I wish him all success in life.
Supervisor
....................

Dean, Department of Business Administration

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Acknowledgement
During my training I was fortunate to have the support, support and encouragement of so many people.
First of all, I would like to express my gratitude to Allah Almighty for completing this report.
I would like to express my respect and gratitude to my supervisor, Professor Dr.

Mohammed Masum Iqbal, to support, guide, and direct his or her care values. I was lucky
enough to have the opportunity to prepare this recipe based on his guidance and teaching. Without
his instructions, it would not have been easy for me to complete this report.
I would like to express my special thanks to Mirza Hasanul Rahman, the police
assistant who has helped me in many ways by providing information and involvement
in my work. I want to thank the owner in particular. That she helped me a lot while I was
working-Controller.
Finally, I would like to express my special thanks to the Lord for giving me more
patience and energy to complete this relationship and thank my friends and family for
their support me when I go to work.

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Executive Summary
To provide students with a practical perspective and a way to move from theoretical knowledge
to real life, attendance is a must. The advantage of theory and practice made this program
possible.
The Bank has gone through three stages of development: emigration, hiring and financial
reform. Sonali Bank is the largest Lending Bank since 1972, with new prospects and
commitments of public service.
This report is usually divided into three sections. Partly related to my previous experience as
an intern at Sonali Bank Ltd., EPZ, Savar and my management research, management and
standards of Sonali Bank Ltd. And the last part is the consumer satisfaction research for S Bank
loan service.
The report is a joint venture of a three-month internship with Sonali Bank In this article I have
explained the best writing of my real life while financing and risk.

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Table of Contents
S. N Contents Page no
Cover page I
Letter of Transmittal ii
Declaration iii
Certificate of Approval iv
Acknowledgement v
Executive Summary vi
Chapter- 01 Introduction
1.1 Introduction 02
1.2 Background of the Study 02
1.3 Scope of the Study 03
1.4 Objectives of the Study 03
1.5 Methodology of the Study 03
1.6 Limitations of the Study 04
Chapter- 02 Overview of the SONALI Bank Limited
2.1 Historical Background of SONALI BL 06
2.2 Objectives of SONALI BL 06
2.3 Mission 07
2.4 Vision 07
2.5 Slogan & Motto of SONALI BL 07
2.6 Core Values 07
2.7 Products & Services 07-09
2.8 Performance of SONALI BL 09
Chapter- 03 Financing & Risk Management of SONALI BL
3.1 Account Department 11
3.2 Types of clearing 11-12
3.3 Types of Remittance 12-13
3.4 Financing in project 13-14
3.5 Participants in a project finance transaction 14-15
3.6 Credit Analysis 15-16
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3.7 Credit risk 16

3.8 SONALI BLs credit risk management policy 17-18
3.9 Credit Administration 18
3.10 Credit Monitoring 18
3.11 Deposit growth rate 19
3.12 Credit and growth rate 19-20
3.13 Credits to Deposit Ratio 20-21
3.14 Sector wise distribution of loan 21-22
3.15 Recovery rate 22
3.16 Deposit of SONALI BL as a percentage of National Deposit 22-23
3.17 Credit of SONALI BL as a % of National Credit 23-24
3.18 Comparison of credit to deposit ratio & National credit to deposit ratio 24
Chapter- 04 Findings, Recommendation & Conclusion
Findings 26
Recommendations 27
Conclusion 28
References
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Chapter- 01
Introduction

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1.1Introduction:
Often, from the word "finance" you can easily understand how a financial company manages money.
But there are many types of bank accounts such as; Major banks, banks, trading banks, savings banks,
banks, industrial banks, cooperative banks, etc. But when we use the word "bank" without proposals
or qualifications, we are referring to "companies". Commercial banks are the mainstay of the country's
economy. Therefore, we can say that banking services are profitable company that keeps deposits of
individuals and companies in management and savings and then uses these funds to borrow money.
For them and for the people the government still relies on these banks as a financial barrier. As banks
gain - anxiety; keep deposits at a very low cost and offer loans and promotions at a high price. The
difference between the two is the benefits to the bank.
The financial industry is facing various financial situations on a daily basis. At the same time, the
business process has become faster, easier, and the banking sector has expanded. As the demand for
better services grows daily, different ideas and new products are emerging. In order to survive the
competition in the financial services industry, all financial institution organizations are looking for
better services to provide for their clients. As a result, it is important for everyone to have a vision for
the bank and the business process.
The internship is important for all students, especially students of Business Administration, which
helps them understand the realities of real life. As a result, the student will do an internship at the end
of the BBA program, in order to start working with previous experience.
1.2Background of the Study

Upon completion of the 4-year BBA program, the organization will be involved for three months.
Therefore, the preparation and presentation of this report is an important part of the Bachelor of
Business Administration (BBA) graduation. The report is the result of a three-month training course
with National Credit and Commerce Bank Limited, one of South Africa's most respected private
companies. I have decided to work on the final report on "Financial Management and Risk
Management", with adequate analysis and solutions organization presented to the Human Resources
Division SONALI Bank Ltd. Headquarters in Dhaka.

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1.3 Scope of the Study

Scope of the study is quite clear. SONALI bank has already made significant
progress within a very short period of its existence. Besides its profit earning
operation, SONALI Bank engages with many social activities. In this report I tried
to explain Financing & Risk management of SONALI bank.
1.4 Objectives of the Study

The main objective of the report is to identify and evaluate the Financing &
Risk management of SONALI Bank, which includes the following specific
objectives;
Specific
Objectives:
 T o know about the financing & Risk management through analysis the
activities of SONALI BL.
 T o know the Participants in a project finance transaction SONALI BL
 T o analysis the credit risk management policy of SONALI BL
 T o provide recommendations based on the findings of the study.
1.5Methodology of the Study

Primary
sources:
 Study of old files/ documents/ formats.
 Face to face communication with the manager, officer and employees.
 Doing practical work in different desks of SONALI Bank.
 Direct observation of SONALI Bank HR and Finance division activities.
Secondary
sources:
 Various reports and articles related to study.

 Different text books and journals
 Annual report of the Bank
 Internet is additionally used as a theoretical supply of data
 Websites and newsletters are also used as major sources

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1.6 Limitations of the Study

 Time to prepare this report is too short. I have had very little time to complete this
report which is not enough to know the details of an organization such as SONALI
Bank limited.
 Lack of information due to security and company obligations
 Lack of access to internal information
 Lack of information about quantitative data analysis
 Sometimes the client does not cooperate easily
 Since I have relied heavily on the main sources, there may be some accuracy in my
collected information, although appropriate and reverse tests have been performed
to minimize error.
 With all the staff of the financial institutions busy, it is difficult to interrupt them
enough to share information.

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Chapter-
02
Overview of the SONALI Bank

Limited

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2.1 Historical Background of SONALI BL:
Sonali Bank was established in 1972 under the Bangladesh Banks (Nationalization) Order, by consolidating
and relocating the branches of the National Bank of Pakistan, Bank of Bahawalpur, and Premier Bank branches
located in East Pakistan until the Bangladesh Liberation War. of 1971. At its inception, Sonali Bank had a
cash loan of $ 30 million. In 2001, its main approved and paid capital was Tk 10 billion and Tk 3.272 billion
respectively. Currently, it's main authorized and paid funds are Tk 10 billion and Tk 9 billion respectively.
Bank deposits were Tk 60 million in 1979 and Tk 2.050 billion as of 30 June 2000. In 2013, $ 250,000 was
stolen from a bank by Cybercriminals using the Swift International payment network. In 2016 the Bank signed
a PayPal Memorandum of Understanding with PayPal.
2.2 Objectives of SONALI BL:

 Gaining customer satisfaction through the activities of various banks and the introduction of
banking establishments.
 Improve customer services in recent times by introducing a number of IT-based
transformation initiatives.
 Stay to be one of Bangladesh's leading banks in terms of profitability and assets.
Quality.
 Ensuring a sufficient level of return on investment
 Saving sufficient funds to meet emerging obligations and obligations.

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2.3 Mission:
 Delivering e x c e l l e n t f i n a n c i a l s erv i ce t o o u r co m m u n i t i e s b a s e d
o n s t ro n g customer relationship
 Provide long-lasting solutions that integrate our advanced technology,
knowledge and financial strength to our customers and stakeholders.
 Creating a cohesive and friendly environment where customers and our
people can excel
 It is dedicated to expanding the range of quality products that support the
diverse needs of the people aimed at enriching their lives, building the value of
participants and contributing to the country's socio-economic development.
2.4 Vision:
Being a committed and reliable Business House with high business principles that create a continuous
number of our customers in the financial market.
2.5 Slogan of SONALI BL:

Slogan
 Your trusted partner in innovative banking
2.6 Core Values

Accountability
Professionalism
 R e s p e c t for Nature
Confidentiality
Integrity
Commitment
2.7 Products & Services

Deposit Products
 Current Deposit A/C
 Saving Bank Deposit, A/C
 Special Notice Deposit A/C
 Special Savings Scheme

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
 Special Deposit Scheme
 Money Double Program
 Youngster Account
 Youngster Maximums Account
 Youngster Money plant Scheme
Loan and Advance Product

 Working Capital
 Import and Export Financing
 Agriculture Financing
 SME Financing
 Retail and Consumer Financing
 House Building Financing
 Long term Financing
 Commercial and trade financing
 Personal Loan
 Care Loan
 Educational Loan
 Marriage Loan
 Health Loan
 Professional Loan
 Home improvement Loan
Card & ADC

 Credit Card
 Debit Card
 Card officers
 Credit Card value added service

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Services
 SONALI Bank Securities & Financial Service

 Treasury Service
 Remittance Service
 Locker Service
 Off Shore Banking Unit
 Enlisted Surveyors/Values
 Municipal holding tax
 Passport fees, Visa fees and travel tax
2.8 Performance of SONALI

BL
Businesses include loans and mortgages. As in other companies, the exchange must be
capital, but its own capital must be used sparingly packaging of their industry. The
purpose of securing and retaining goods is, in particular, to provide continued protection
against borrowing and loss of capital.
SONALI BL is a private company. November 18 the bank started a profitable

business. During this short period, the bank was able to achieve its prosperity and
financial position in the country. The bank has benefited greatly from local businesses,
from small businesses / entrepreneurs to large corporations and joint ventures, including
investors.

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Chapter- 03
Financing & Risk Management of
SONALI BL

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3.1 Account Department
This is the most private part of the bank. The collection, verification and publication of each
type of business branch are a key function of this department. The role of the office can be
divided into two sections:
Daily activity:
 Make a salary statement and pay the salary

 Pay all expenses on behalf of the branch
 Prepare a daily branch structure that includes deposit and cash
 Record of daily general and subordinate activities
 A record of daily activities in the ledger
 Record of the transfer of funds for the trainee’s branch and to provide financial management in this
regard
Periodical function:
 P r e p a r e the monthly position for the branch, which is sent to head office to
maintain liquidity requirement.
 P u b l i s h the basic data for the branch, which is sent to head office to maintain
cash reserve requirement
3.2 Types of clearing
Outward clearing
Outdoor advertising means that when a certain branch receives the extraction equipment on
another bank in the removal area and the collection equipment by installing the removal
is decides to go out for that particular branch.

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Inward clearing
The bank removes the assets of other banks from the bank, which is collected by various
consumers. It provides this type of service to its customers at no cost or forgiveness
3.3 Types of Remittance
Pay order:
A payment order is an instrument in which a payment order is submitted to the payee

only if the payment is made locally, on behalf of the bank or at its establishment. Unlike
a check, there is a possibility not to execute a payment order. The SONALI BL charges a
different commission depending on the amount of the payment order
Demand Draft:
According to DD, anyone can send money from one branch to another SONALI BL
branch. To send the money, you need to complete the DD certificate from SONALI BL
and the cost / work paid get DD block. Block DD contains the following files:
 N a m e of the sender branch

 N a m e and account of the party who receives the money
 F o r security purpose a confidential test number are included in the DD block
 A m o u n t of money to be transferred
 N a m e of receiver branch
The sender sends this block to the DD recipient. Once this DD block has been received
by the customer, the consumer's authorization will check the reserved DD number and if
the number proves it, he gives the money to the payer.

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Telegraphic transfer
In order to send money to SONALI BL promptly, TT will be asked for a fee and a
telephone bill. Anyone who sends money quickly from one branch to another SONALI
BL via TT. When the TT phone is sent from one branch to another at that time, the
message is received by an authorized person with the power of attorney. Attorney next,
fills out the TT form. TT module includes:
 T h e amount to be transferred
 P o w e r of attorney number of the sender and receiver of TT.
 N a m e and account number of the payee
 T T test number
 T T number
After completing the TT form, check the TT number. If it goes through the test account
number, it includes the payer's number. If, on the other hand, the meter number is not
checked, it calls the TT sender and asks to send a new TT.
Mail transfer
Money can be sent by post to anyone who has an account at another branch of the same
bank, the sender must provide details, like:
 T h e name of the beneficiary and his account number
 T h e amount to be transferred
 T h e name of the branch where the account is maintained
3.4 Financing in project

Financial institutions first recognize our important decision; it is an investment decision
that deals with the investment climate. Here, the term "ownership" should be used to
include construction plans, product variations, and water flow plans. With similar
strategies, companies extract capital, such as oil or copper, sell assets and use the
proceeds to support debt relief and restore capital until the capital disappears. By
comparison, projects on water flow, pipelines, telephone lines, and energy-dependent
companies use the tools to recoup their money for suppliers. The issue also concerns the
decision to set up an organization to establish the legal independence that a member

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would have. As a result, the investment portfolio can take the form of a balance sheet,
which means that the investment portfolio and liabilities are not visible in the sponsor
balance. However, the correct count depends on t h e ballot paper (attendance,
participation, etc.) and the interest project management. In most cases (for example,
when there is only one sponsor), resources and responsibilities are indicated in the
sponsor's financial statements. Finally, financial decisions are made no claim to money.
Since a company's operations are not legally independent, expenses can be recalculated
without a reinstatement request. Legal independence also guarantees the provision of
resources have a clear need for capital gaps and cash flows without having to worry
about donor status or previous demand for its capital.
3.5 Participants in a project finance transaction
Purchase agreement: agreement between the main user of the project output and the
project company.
Supply agreement: agreement between the provider of a critical key contribution and
the project company
Inter-creditor agreement: an agreement between creditors or the class of creditors it

describes rights and obligations in the event of non-payment.
Shareholders and maintenance agreement: between the Contractor of the Operations

and the Project Company, obliges the Operator to manage and maintain the project.
Engineering procurement and construction contract: between the project company

and the engineering company.
Affected communities: these are direct or indirect stakeholders Affected by work (e.g.,
communities that need to be relocated due to power plant construction, telephone lines,
lakes, mine, etc.)
Environmental Impact assessment consultant: is an expert who examines whether the

work meets international and international minimum standards on the legal status and
approval.

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Construction/Engineering consultants: This is a company responsible for construction,

purchasing and construction. Supplier: This is to select the manufacturer of the key
equipment that will be used during the construction project.
Operator: Typically, this is the engineering that oversees the development and
management of the project (e.g., Energy).
Nonrecourse Debt funders: they are the long-term loan providers for transactions. They
usually account for around 60-70% of total transaction funding. (Usually these are
commercial banks, development finance institutions, multilateral, bilateral and exporting
institutions Credit agencies.
Equity funders: they are the owners of the target company and put the greatest risk on
the entire capital of the project (equity). Their contribution is usually 40-50%, compared
to the total investment.
Government: This participant is responsible for creating an environment conducive to

financial transactions through its legal process and other legal implications (e.g. consent,
permits, housing rights, etc.)
3.6 Credit Analysis
Through financial intervention, the bank finds ways to use its money by: (a) having income,
(b) minimal risk; and (c) the cost of administration has been reduced. Although
"motivation for profit" is still an important decision for the bank to operate and have a
profitable growth, the bank will still be able to respond sufficiently to its business goals.
Community trade created by the Government bank from the past to accelerate the
development of the country's economy
Target Customer
 Bank employee
 Government and Semi Government organization
 Public limited company

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 Private limited company

 Partnership firm
 Sole proprietorship firm
 Individual person
Various product of credit

 L o a n (General)
 House Building Loan.
 Transport Loan.
 Project Loan.
 Loan under Consumer Finance Scheme
 Loan under Lease Finance Scheme.
 Secured Overdraft
 Cash Credit (Pledge)
 Cash Credit (Hypothecation)
 Export Cash Credit
 Bank Guarantee.
 Letter of Credit.
 Payment against Document
 Loan against Imported Merchandise
 Loan against Trust Receipt.
 Back to Back Letter of Credit
 Accepted Bill for Payment.
 Inland Bill Purchased
 Local Documentary Bill Purchased.
 Foreign Documentary Bills for Purchased.
 Foreign Documentary Bill for Collection.
 Packing Credit.
 Foreign Bank Guarantee.
 Small Business Loan
 House Renovation Loan
 Personal Loan.

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 Festival Small Business Loan Scheme
3.7Credit risk
The lending policy includes the principles governing the continuation, governance,
supervision and repayment of loans in accordance with the interests of Bangladesh Bank
and other federal regulations.
3.8 SONALI BLs credit risk management policy
i. General lending policy:

 Short term finance to trade, industry and sector
 Selective long finance
ii. Rescheduling: The credit rescheduling must be performed according to BRPD
circular no.
iii. Renewal of credit: Renewals of the application form are submitted to the head office
2 months before the expiration date.
iv. Management of problem account: The Executive Committee will a l s o be
responsible for the branch to the management office to manage and recover account-
related issues.
v. Document maintenance: Loan information and loan information must be kept and
recorded is corrected by the supervisor responsible for a written law.
vi. Legal vetting: All tax and mortgage documents must be verified by a lawyer.
vii. Credit committee: There will be a credit committee at the branch and at the
headquarters for approval of credit processing.
viii. Corporate set-up at branch level: Here, Head is the director of the main branch
(Relationship Manager) and then below, there are 4 departments, they are,
 Relationship Officer
 Credit Risk Review Unit
 Credit Administration Unit
 Recovery Unit
ix. Credit risk grading: All credits must be classified into 8 categories. Credit analysis
the risk classification is done before any approval. The periodic review of the rating

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will also be done after the marketing deadline and approved by the credit risk
management division.
x. Handling of different credits at head office:
 Staff Loan
 Consumer credit
 Retail credit
 SME credit
 Corporate credit
xi. CIB: Up-to-date CIB be collected before approval of credit

xii. Pricing: The price will be based on risk and market conditions in accordance with the
guidelines in Bank of Bangladesh. The ALCO Headquarters Committee will review
pricing through the board of directors. The General Manager has the right to increase
or decrease the interest rate by 1.40% where the average rate prevails.
xiii. Support security: The bank will seek additional comfort through support security
such as personal guarantee, post-dated check, creation of charges at RSJC and
business guarantee etc.
xiv. Security: The bank will try to have as many collaterals based as possible on the forced
sale value.
xv. Maximum tenor: The duration of the loan is generally based on the ability to repay,
expected cash flow and amortization period. The maximum product content has been
defined in the credit manual.
xvi. Diversification and sector Allocation: Loans are diversified into different sectors
and the annual budget of the industries is drawn up and reviewed.
xvii. Large loan: The loan of 105 from Capital Banks. The Bank can extend the large loan
up to 56% of its portfolio.
xviii. Name of lending: Loans based solely on the general location and reputation of the
loan is not permitted. In all cases, the credit requirement, profitability, cash flow, level
of risk, mitigation and security, etc. must be analyzed.
xix. Product and Service: Design and re-engineer products to meet customer demand.
3.9 Credit Administration:

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Responsible management is important to ensure that there is the necessary information

and approval before payment of credit. For this reason it is an important function Credit
management should be segregated from social / business management in order to influence
the management of issues that are not immediately reported level.
3.10 Credit Monitoring:
To minimize advance payment, health professionals and procedures should be in place to

provide early warning of the creditor's poor financial condition. at least it should be to
announce the following exemptions for key CRM and RM team leaders:
Analysis Part
3.11 Deposit growth rate
Total Deposit
Year 2016 2017 2018 2019 2020
Loan and 67961 81918 96918 98229 105703
Advance
Growth rate 26.09% 19.37% 19.46% 1.35% 7.61%
Growth rate
2019
2% 2020
10%
2016
35%
2018
27%
2017
26%

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Interpretation: Annually, investments have increased from year to year at SONALI Bank
Limited. In 2016 the investment was tk. 67961 million, but in 2020 it was Tk. 105703
million. The second graph shows that the growth rate of wise investments for the year has
fluctuated over the years.
3.12 Credit and growth rate
Total credit
Year 2016 2017 2018 2019 2020
Tk. In 63230 72734 79948 88147 90921
millions
Growth rate 25.49% 15.02% 9.91% 10.25% 3.14%
growth rate
2016 2017 2018 2019 2020
5%
16%
40%
15%
24%
Interpretation: Each year, the investments have increased from year to year at SONALI Bank
Limited. In 2016 the investment was of tk. 63230 million, but in 2020 it was Tk. 90921 million.
The second graph shows that the growth rate of wise investments for the year has fluctuated
over the years.

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3.13 Credits to Deposit Ratio
Credit to Deposit ratio= (Total credit/ Total deposit) *100
Year 2016 2017 2018 2019 2020

Credits to
93.04% 83.00% 77.00% 83.00% 86.00%
Deposit Ratio
Credit to Deposit ratio
20% 22%
2016
2017
2018
2019
20%
20% 2020
18%
Interpretation: The graph shows that the credit-to-deposit ratio is decreasing year on year
except in 2018. It decreased from 2016 to 2017 but in 2018 to 2020 it increased from 77% to
86%.

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3.14 Sector wise distribution of loan
Sector wise distribution of loan
10% 2% 10%
Agriculture
Export financing
Import financing
34% Transport & Communication
40% Business
House building loan
4%
Interpretation: SONALI Bank Limited provides 38.82% of the total credit in industry,
21.21% in import financing and 16.36% in trade credit. SONALI Bank Limited essentially
distributes its credit in the Industry & Business sector because it is more profitable than other
sectors.
3.15 Recovery rate
Year 2016 2017 2018 2019 2020

Recovery rate 97.53% 97.72% 97.85% 96.38% 98.40
Interpretation: The graph shows that in 2016 the recovery was 97.53%. It became 97.72%
in 2017, 97.85% in 2016 and 96.38.00% in 2019. In 2020 the bank improved its recovery rate
which is 98.40%.

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Year 2016 2017 2018 2019 2020

National
337.8 3858.9 4484.4 5230.3 6330.33
Deposit(million)
Deposit(million) 67971 81127 96918 98229 105703.61
Deposit as total 2.23% 2.10% 2.16% 1.91% 1.67%
National deposit
Interpretation: The graph shows the SONALI BL deposit as a percentage of the national
deposit has fluctuated over the years. However, the deposit as a percentage of the total
national deposit decreased over the year from 2.16% in 2018 to 1.67% in 2020. This indicates
that the comparative trend of deposits of SONALI BL has declined over the years.

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24
3.17 Credit of SONALI BL as a % of National Credit
Year 2016 2017 2018 2019 2020

National
2439.8 3297.5 3642.6 4743.8 6819.75
Credit(million)
SONALI BL 63230 72734 79948 88147 90920.77
(million)
Deposit as total 2.59% 2.20% 2.19% 1.85% 1.3%
National deposit
Credit of SONALI BL as a % of National Credit
2020
13% 2016
25%
2019
18%
2017
2018 22%
22%
Interpretation: The graph shows the SONALI BL credit, as a percentage of the national
credit has decreased over the years. However, the deposit as a percentage of total national credit
has decreased over the years from 2.59% in 2016 to 1.30% in 2020. This indicates that the
comparative performance of SONALI BL credit has decreased over years.
3.18 Comparison of credit to deposit ratio & National credit to deposit

ratio

24
25
Year 2016 2017 2018 2019 2020

National Credit
80.3% 85.5% 79.7% 86.7% 70.5%
to Deposit ratio%
SONALI BL% 93.04% 83.00% 77.00% 83.00% 86.00%
Comparison of credit to deposit ratio &

National credit to deposit ratio
National Credit to Deposit ratio% SONALI BL%
85.5 83 86.7 83 86
80.3 79.7 77
70.5
2016 2017 2018 2019 2020
Interpretation: The graph shows that SONALI BL's credit-to-deposit ratio is lower than
the industry average in each year of analysis, except for 2016. This graph indicates that
SONALI BL uses less than credit deposit compared to the industry average, except for
2016. But from
2017 to 2019, the SONALI BL credit-deposit ratio is close to the industry average each year.
But in 2020 SONALI BL The national credit to deposit ratio is 86%, and the national credit to
deposit ratio is 70%.

25
26
Chapter- 04
Findings, Recommendation &
Conclusion

26
27
Findings:
 Bank follows the overall financial assessment and risk grading process according to
the sales of Bangladesh Bank.
 Sometime the loan documentation fairly done by the branch.
 The cost of the preliminary investigation is higher than the other major loan services
provided by the bank, as it is necessary to closely monitor and supervise the credit
transaction.
 Sometimes it is difficult to collect formal documents and financial returns from the
client, which means the availability of the client's detailed availabilities.
 As for the year, SONALI Bank Ltd.'s credit distribution increased although its growth
rate fluctuated throughout the year.
 SONALI BL disburses 38.82% of total credit to industry, 3.50% to construction, 16.36%
to businesses, 1.43% to agriculture and 11.47% to other sectors.
 There was an upward trend in the total deposit mobilization of SONALI Bank Ltd. from
2016 to 2020, but the growth rate of deposits has fluctuated over the years.
 There are several steps in the loan process and many terms and conditions of SONALI
Bank Limited credit management.

27
28
Recommendations:
 All loan documentation must be done honestly. The bank should focus more on
properly documenting all types of loans to make the department safe and healthy.
 The branch can organize multiple training programs and workshops to make
employees more efficient in their industry.
 All document checks must be performed by the branch before the loan is sanctioned.
 Adequate and effective monitoring should be developed to reduce the performance of
the rated loan.
 SONALI Bank Limited offers several lines of credit in the Dhaka Division and
the Chittagong Division. Therefore, the bank should diversify its credit into other
divisions
 Although the recovery rate trend is increasing, except for 2020. It should subsequently
try to maximize the recovery rate and minimize the default rate.
 SONALI BL's total investment and growth has increased over the past five years.
Therefore the bank should seek to maintain and improve this performance.
 The mobilization of SONALI BL deposits has increased, but the growth rate
has fluctuated over the years. The bank should increase the mobilization of deposits by
creating a new deposit system so that growth is positively increased.

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29
Conclusion:
SONALI Bank Limited sets a new standard in the financial industry during times of financial
crisis. SONALI Bank Limited is a state-owned company based in Bangladesh and is to meet
the needs of large enterprises SONALI Bank Ltd helps to mobilize capital to be strong in
key areas of operation. Banks should be involved in improving the health of the country by
operating profitably in financial institutions, providing credit to creditors with stable,
efficient and sustainable delivery competition, while protecting depositors and ensuring the
best interests of the owners. The bank now acts as an average. By examining its performance,
it has been shown that growth potential can be accelerated by the positive influence of
competitive objectives has on better deal with emerging companies in the form of a variety of
assets. However, the implications for the strategy need to be addressed as soon as possible for
better results. It can prevent the malfunctioning of a company in certain sectors due to its wide
expansion. Investment capitalization has become a great opportunity for a bank to increase its
profits. The bank has managed to create a large loan portfolio. However, prices began to rise
due to a lack of oversight. The bank is trying to make the most of its loans by speeding up its
right to return. The bank can focus on loans where the risk of a downturn and its investments
are beneficial. The loan process has become more inclusive, making it more cost-effective.

29
30
References:
1. https://www.Sonali bank.com.bd/
2. https://www.bb.org.bd/en/index.php
3. https://www.Sonali bank.com.bd/assets/files/annual_report/annual_report_2020.pdf
8. Bhuiya, M. A.B, “Bangladesh Laws on Banks & Banking”, Dhaka: M/S Tawakkal
Press, 2nd edition (1996).
9. Chowdury, L.P; “A Textbook on Banker’s Advances”; 2nd Edition; Paradise Printer;
2002
10. Peter S. Rose & Hudigns, Bank Management & Financial Services

30

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Internship Report on

Financing & Risk Management of

Sonali Bank Limited at DEPZ Branch

© Daffodil International University i

Department of Business Administration

©Daffodil International University

Professor Dr. Mohammed Masum Iqbal

Faculty of Business & Entrepreneurship

Md. Abu Hamza Nomaan

Department of Business Administration

©Daffodil International University

Md. Abu Hamza Nomaan

Department of Business Administration

©Daffodil International University

Professor Dr. Mohammed Masum Iqbal

©Daffodil International University

I would like to express my respect and gratitude to my supervisor, Professor Dr.

©Daffodil International University

©Daffodil International University

©Daffodil International University

3.7 Credit risk 16

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1.2Background of the Study

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1.3 Scope of the Study

1.4 Objectives of the Study

1.5Methodology of the Study

 Various reports and articles related to study.

©Daffodil International University

1.6 Limitations of the Study

 Lack of access to internal information

 Lack of information about quantitative data analysis

 Sometimes the client does not cooperate easily

©Daffodil International University

Overview of the SONALI Bank

©Daffodil International University

2.1 Historical Background of SONALI BL:

2.2 Objectives of SONALI BL:

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2.5 Slogan of SONALI BL:

2.6 Core Values

2.7 Products & Services

Loan and Advance Product

Card & ADC

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 SONALI Bank Securities & Financial Service

2.8 Performance of SONALI

SONALI BL is a private company. November 18 the bank started a profitable

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©Daffodil International University

3.1 Account Department

 Make a salary statement and pay the salary

3.2 Types of clearing

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3.3 Types of Remittance

A payment order is an instrument in which a payment order is submitted to the payee

 N a m e of the sender branch

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3.4 Financing in project

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3.5 Participants in a project finance transaction

Inter-creditor agreement: an agreement between creditors or the class of creditors it

Shareholders and maintenance agreement: between the Contractor of the Operations